Suncorp Group Limited · ASX:SUN
Suncorp — Debt Investor Presentation (March 2017)
27 slides from Suncorp's debt investor presentation, Mar 27, 2017
Slide 1: Suncorp Group Limited Capital Notes Offer
Suncorp Group For personal use only Limited Capital Notes Offer 27 March 2017 1
Slide 2: Important Notice
Important Notice For personal use only This presentation has been prepared and authorised by Suncorp Group Limited (ABN 66 145 290 124) (“Suncorp”) in relation to the proposed offer by Suncorp of Suncorp Capital Notes ("Capital Notes") (the “Offer”). The Offer is made pursuant to a prospectus under
Slide 3: Agenda
Agenda For personal use only Section 1 Offer summary Section 2 About Suncorp Section 3 Key features of Capital Notes Section 4 Offer process CAPITAL NOTES 3
Slide 4: Offer summary
Section 1 For personal use only Offer summary CAPITAL NOTES 4
Slide 5: Offer summary
Summary For personal use only Offer summary Issuer • Suncorp Group Limited (Suncorp) – Top 20 ASX-listed company1 – Market capitalisation of $17 billion1 – A financial services group in Australia and New Zealand Security • Fully paid, subordinated, perpetual, unsecured, mandatorily convertible notes
Slide 6: About Suncorp
Section 2 For personal use only About Suncorp CAPITAL NOTES 6
Slide 7: Suncorp Group: Top ASX listed company
Suncorp Group Top 20 ASX listed company For personal use only Leading financial services brands $17 billion market capitalisation1 in Australia and New Zealand $97 billion in group assets2 13,500 employees in Australia and New Zealand Approximately 9 million customers End-to-end ownership of brands
Slide 8: Strategy
Strategy For personal use only CAPITAL NOTES 8
Slide 9: Strategy
Strategy For personal use only Connected Customers are four times more profitable for Suncorp and have retention rates of >96% Our strategy to grow Connected Customers Frequency and quality of interactions will drive value Customer Marketplace Deep insights Curate solutions Mobility Home Priority se
Slide 10: Half year ended December 2016 results
Half year ended HY17 HY16 Change For personal use only 31 December 2016 ($m) ($m) (%) Insurance (Australia) 369 259 42.5 Banking & Wealth 208 207 0.5 New Zealand 36 78 (53.8) ̶ Business line NPAT up 12.7% Business Line NPAT 613 544 12.7 ̶ Cash earnings up 5.0% Other (29) 12 n.a ̶ Dividend up 10.0% C
Slide 11: Group Risk Based Capital (RBC)
General Insurance Bank Group Risk Based 3% 3% For personal use only Capital (RBC) 27% 21% Group 65% 8% 73% 11% 3% Life Insurance Corporate 7% 14% 24% 36% 62% 57% 86% ■ Insurance risk ■ Market risk ■ Operational risk ■ Counterparty credit risk CAPITAL NOTES 11
Slide 12: Capital position as at December 2016
As at 31 December 2016 Capital position SGL, Total For personal use only ($m) GI Bank Life Corp Services Total as at 30 Jun & Consol 2016 CET1 2,848 2,913 525 121 6,407 6,338 CET1 Target 2,440 2,772 358 6 5,576 5,552 Excess to CET1 Target (pre div) 408 141 167 115 831 786 Group Dividend (383) (440)
Slide 13: Pro forma capital adequacy
Pro forma capital adequacy For personal use only As at 31 December 2016 Pro forma Suncorp $m Suncorp Group Total Pro forma adjustments1 Group Total CET1 Capital 6,407 (7) 6,400 Additional Tier 1 Capital 960 250 1,210 Tier 2 Capital 1,782 – 1,782 Total Capital 9,149 243 9,392 Excess to CET1 Capital T
Slide 14: Key features of Capital Notes
Section 3 For personal use only Key features of Capital Notes CAPITAL NOTES 14
Slide 15: Capital Notes key features: General
Capital Notes key features For personal use only General Issuer • Suncorp Group Limited (Suncorp) Security • Fully paid, subordinated, perpetual, unsecured, mandatorily convertible notes Offer size • $250 million with the ability to raise more or less Issue Price • $100 per Capital Note Ranking1 • I
Slide 16: Capital Notes key features: Distributions
Capital Notes key features For personal use only Distributions Distributions • Distributions are discretionary, non-cumulative, floating rate payments and are expected to be fully franked Distributions are scheduled to be paid quarterly in arrears, subject to no Payment Condition existing the fi
Slide 17: Summary of events that may affect the Capital Notes
Capital Notes key features For personal use only Summary of events that may affect the Capital Notes CAPITAL NOTES 17
Slide 18: Optional Exchange and Conversion on Acquisition Event
Capital Notes key features For personal use only Optional Exchange and Conversion on Acquisition Event Exchange by Suncorp1 • Suncorp may choose to Exchange all or some Capital Notes on the Optional Exchange Date (being 17 June 2022) • Suncorp may choose to Exchange all or some Capital Notes after a
Slide 19: Mandatory Conversion
Capital Notes key features For personal use only Mandatory Conversion • The Mandatory Conversion Date will be 17 June 2024, provided the Mandatory Conversion Conditions have been satisfied on that date. If any of the Mandatory Conversion Conditions are not satisfied on this date, then the Mandatory
Slide 20: Mandatory conversion: Non-Viability Trigger Event
Capital Notes key features For personal use only Mandatory conversion Non-Viability Trigger Event • A Non-Viability Trigger Event occurs where APRA provides a written determination to Suncorp that the conversion to Ordinary Shares or write off of Relevant Securities (including Capital Notes) in acco
Slide 21: Ranking of Capital Notes in a winding-up
Capital Notes For personal use only Ranking of Capital Notes in a winding-up1 Notes: 1 The ranking of Holders in a winding-up will be adversely affected if a Non-Viability Trigger Event occurs. See Sections 1.3, 2.4.4 and 5.1.9 of the Prospectus. 2 For more information on ranking in a winding-up, se
Slide 22: Comparison between Capital Notes and other investments
Capital Notes For personal use only Comparison between Capital Notes and other types of investments1 Suncorp Standard term deposit SGL Subordinated Notes Suncorp Capital Notes Suncorp Ordinary Shares CPS2 and CPS3 Issuer • Suncorp-Metway Limited • Suncorp Group Limited • Suncorp Group Limited • Sunc
Slide 23: Key risks associated with an investment in Capital Notes
Capital Notes For personal use only Key risks associated with an investment in Capital Notes • Capital Notes are not deposit or policy liabilities of Suncorp or any member of the Suncorp Group, are not protected accounts under the Banking Act or protected policies under the Insurance Act, and are no
Slide 24: Offer process
Section 4 For personal use only Offer process CAPITAL NOTES 24
Slide 25: Offer structure
Offer structure For personal use only Institutional • Offer to certain institutional investors Offer Broker Firm • Offer to Australian resident retail and high net worth clients of Syndicate Brokers Offer Securityholder • Offer to Eligible Securityholders Offer – registered holders of Suncorp Ordina
Slide 26: Key dates
Key dates1 For personal use only Event Date Record date for determining Eligible Securityholders 23 March 2017 Lodgement of Prospectus with ASIC 27 March 2017 Bookbuild 3 April 2017 Announcement of the Margin 3 April 2017 Lodgement of the replacement Prospectus with ASIC 4 April 2017 Opening Date 4
Slide 27: Contact directory
Contact directory For personal use only Issuer Suncorp Group Limited Simon Lewis Deputy Treasurer +61 7 3362 4037 Greg Volz Executive Manager, Capital Funding & Instruments +61 2 8121 0501 Arranger and Joint Lead Manager Andrew Buchanan +61 2 9324 2617 UBS Enrico Musso +61 2 9324 2985 Joint Lead Man
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