Banco Santander, S.a. · BME:SAN
Banco Santander — Banco Santander Central Hispano — Merger or Acquisition (October 2005)
25 slides from Banco Santander's merger presentation, Oct 26, 2005
Slide 1: Important Information
IMPORTANT INFORMATION Banco Santander Central Hispano, S.A. ("Santander") cautions that this presentation contains forward looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward looking statements are found in various places throughout this pr
Slide 2: Agenda
Agenda 1. Transaction Summary 2. Rationale for the Investment 3. Description of Sovereign and Combined Entity 4. Appendix 3
Slide 3: Transaction Summary
Transaction Summary [ ] Santander is announcing a 19.8% investment in Sovereign for $2.4 Bn, a leading U.S. banking institution based in Philadelphia, Pennsylvania [ ] Sovereign issues new shares (19.99% of its capital) to Santander ($1,950 Mill.) at $27 per share. After the capital increase, Santan
Slide 4: Agenda: Rationale for the Investment
1. Transaction Summary 2. Rationale for the Investment 3. Description of Sovereign and Combined Entity 4. Appendix 5
Slide 5: This investment is...
This investment is... [ ] ... a good financial investment on its own... - EPS accretive immediately - Reasonable entry PE - Low regulatory capital consumption [ ] ...that opens new opportunities - Consumer finance, car finance, etc... - Medium term "window" into the US market ...undertaken as part o
Slide 6: A Good Financial Investment on its Own
.... a Good Financial Investment on its Own... Assumes equity accounting - Purchase multiple: Reasonable entry multiple 13.5x (P/E) 2006 (1) - Estimated impact on core Tier 1: Low capital consumption 20 - 24 bp (2) - Estimated 2006 EPS impact: EPS Accretive +1.8 / 2.2% (2) Notes: (1) Based on additi
Slide 7: ...that opens new opportunities
....that opens new opportunities [ ] Financial investment that opens new opportunities Window to the US retail market [ ] We can get a deeper understanding of the US market US Consumer finance market [ ] Sovereign has a $4.3 Bn. auto loan portfolio 8
Slide 8: Part of a Wider Process of Capital Reallocation from Non Core Activities
.... Undertaken as Part of a Wider Process of Capital Reallocation from Non Core Activities (Industrial Portfolio) to the Banking Business 9
Slide 9: Agenda: Description of Sovereign and Combined Entity
1. Transaction Summary 2. Strategic Rationale for the Investment 3. Description of Sovereign and Combined Entity 4. Appendix 10
Slide 10: Sovereign Overview (I)
Sovereign Overview (I) [ ] Sovereign is active in retail and commercial banking, corporate banking, asset management, insurance and capital markets [ ] Total assets in excess of $62 Bn.; more than 650 branches; 950 ATMs and more than 8,000 employees [ ] Sovereign is #18 retail bank in terms of asset
Slide 11: Sovereign Overview (II)
Sovereign Overview (II) [ ] Management team with extensive experience in the industry - Proven integration skills [ ] Diversified product mix [ ] Earnings growth - 13% annual growth in the last five years [ ] Stock price is up more than 130% in the last five years [Graphic charts Notes: (1) Excludes
Slide 12: The Combined Group: Sovereign + Independence CB Corp
The Combined Group: Sovereign + Independence CB Corp [ ] Independence CB Corp acquisition reinforces Sovereign positioning in Mid-Atlantic markets and provides entry into metro New York area [ ] Strong retail banking division - 788 branches and 1,146 ATMs - 10,161 employees - #7 in terms of total de
Slide 13: Pro-Forma Combination Sovereign + Independence CB Corp
Pro-Forma Combination Sovereign + Independence CB Corp [ ] Total assets above $81 Bn. [ ] The combined entity becomes one of the top 20 banks in the US [ ] Significant presence in the wealthy Northeast (New York, New Jersey, New England and Pennsylvania) with 788 branches and 1,146 ATMs [ ] The comb
Slide 14: Agenda: Appendix
1. Transaction Summary 2. Strategic Rationale for the Investment 3. Description of Sovereign and Combined Entity 4. Appendix 15
Slide 15: The Combined Entity Becomes a Large Player in the US
The Combined Entity Becomes a Large Player in the US Sovereign + Independence CB Corp Creates a Top 20 Bank in the U.S. Assets Market Capitalization Ranking Institution (Mill.$) Ranking Institution (Mill.$) - ------- ----------- -------- ------- ----------- -------- 1 Citigroup 1,471,626 1 Citigroup
Slide 16: Sovereign: Distribution Network
Sovereign: ' Distribution Network Deposit Mkt. Ranking Share State (#) (%) Massachusetts 4 7.7 Pennsylvania 5 4.9 New Jersey 9 3.5 Rhode Island 3 9.4 Connecticut 10 2.1 New Hampshire 6 3.2 Maryland 38 0.3 Boston, MA 4 6.7 New York, NY 19 0.9 Philadelphia, PA 10 2.5 Providence, RI 3 12.7 Reading, PA
Slide 17: Sovereign: Distribution Network
Sovereign: — Distribution Network 7
Slide 18: Sovereign Main Figures
Sovereign ' Main Figures Mill. $ except where noted 2001 2002 2003 2004 2000-2004 C3Q'05 YTD - ------------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------------------------
Slide 19: Independence CB Corp - Distribution Network
Independence CB Corp - Distribution Network Headquarters Brooklyn, NY No. of Branches 125 Market Cap. $2.7 Bn P/2005E EPS 12.2x P/BV 1.18x P/TBV 2.68x Assets $18.5 Bn. Loans $12.3 Bn. Deposit $10.5 Bn. County Deposits Market ($Mill.) Share (%) Kings, NY 2,668 8.7 Richmond, NY 2,539 32.2 Essex, NJ 1,
Slide 20: Independence CB Corp - Main Figures
Independence CB Corp - Main Figures Mill. $ except where noted. 2001 2002 2003 2004 2000-2004 C3Q'05 YTD - ------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------
Slide 21: The New Group: Distribution Network
The New Group: Distribution Network Sovereign Indepen.Pro-Forma Branches 663 125 788 - ---------------------------------------------- - ---------------------------------------------- ATMs 950 196 1,146 - ---------------------------------------------- - ----------------------------------------------
Slide 22: Deposit Rankings by State
Deposit Rankings by State New Jersey Massachusetts Pennsylvania ------------- ------------ Deposits Market Deposits Market Rank Institution Branches ($MM) Share(%) Rank Institution Branches ($MM) Shar(%) - ----------------------------------------------------------------------------------------------
Slide 23: Deposit Rankings: Rhode Island and Connecticut
$MM Rhode Island Connecticut ------------ ----------- Deposits Market Deposits Market Rank Institution Branches ($MM) Share(%) Rank Institution Branches ($MM) Shar(%) - -----------------------------------------------------------------------------------------------------------------------------------
Slide 24: Deposit Rankings by State (cont'd)
Deposit Rankings by State (cont'd) $MM 1 RoplEakotsontacmom 2 fatkotametbacon. atc) a 8 soveraign ® 1 wacihgpeTreetEaicom ho.) 1 5 ete he. 0) q 5 saioyp Rice Kinane.) 16 1 saueotnewport 0 2 centeute Saige Eaak mb a 9 Weber Fiatcalcorp. 6 10 Home Loot Fisica corp. (R32 2 Rojal Sak otscataa Grip 3 TOe
Slide 25: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Santander Central Hispano, S.A. Date: October 25, 2005 By: /s/ José Antonio Alvarez Name: José Ant
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