Bankinter Sa · BME:BKT
Bankinter Sa — Merger or Acquisition (March 2021)
22 slides from Bankinter Sa's merger presentation, Mar 23, 2021
Slide 1: A new Era without Linea Directa
A new Era without Linea Directa 23 March 2021
Slide 2: Updated calendar of the transaction
Updated calendar of the transaction Announcement LDA AGM ECB of the expected transaction Approval authorisation listing 18 of Dec’19 19 of Mar’20 22 of Mar’21 End of April’21 2
Slide 3: The road traveled with Linea Directa
The road traveled with Linea Directa 3
Slide 4: Linea Directa, a leader in direct insurance in Spain created from scratch
Linea Directa, a leader in direct insurance in Spain created from scratch First insurer to offer insurance Launch of Home insurance. over the internet Opening of car repair unit 1 mill. customers >3 mill. customers Línea Directa Purchase of remaining founded 50% Health insurance 1995 1997 1999 2004
Slide 5: LDA a unique and differentiated franchise that ensures a bright, profitable and solvent future
LDA a unique and differentiated franchise that ensures a bright, profitable and solvent future Leading franchise in the Strong brand recognition direct motor insurance Consistently growing ahead and a technological industry of the market reference in the industry Disciplined underwriting and Vast po
Slide 6: Linea Directa has reached a size and solid business model that allows it to continue its success story
Linea Directa has reached a size and solid business model that allows it to continue its success story 891 899 797 853 685 677 650 643 651 680 739 625 644 649 662 Premiums (€ mill.) 564 488 394 +31% Premiums 196 290 134 from 2010 4 28 52 78 96 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2
Slide 7: BK shareholders will receive the return on the investment made
BK shareholders will receive the return on the investment made when Bankinter asked them for their trust to boost the business Investment Return €36 €426 €1,178 €1,184 €250 million million million million million In-kind distribution of Capital investment from Acquisition in 2009 of 50% Dividends pa
Slide 8: Implications of the transaction
Implications of the transaction 8
Slide 9: BK shareholders will receive one Linea Directa share for each Bankinter share they hold
BK shareholders will receive one Linea Directa share for each Bankinter share they hold 17.4% Market value*: €1,434 million No. of shares: 1,088,416,840 €1,184 mill 1 BKT share = 1 LDA share Reference price per share: €1.318€ Extraordinary dividend from LDA to Bankinter : €120 million Shareholders 8
Slide 10: The transaction will generate a positive impact in 2Q21 P&L
The transaction will generate a positive impact in 2Q21 P&L due to the valuation adjustment of the LDA stake Shareholders equity P&L impact 1 Share premium reduction by ≈ - €1.2 bn 2 3 Impact from capital gains accounted LDA revaluation at €1,434 million and as “Discontinued operations”* booking of
Slide 11: The split of Linea Directa will account for a positive 8bps on Bankinter's CET1 ratio
The split of Linea Directa will account for a positive 8bps on Bankinter’ CET1 ratio Impact in CET1 (bps) +8 bps + 0,35% - 0,24% - 0,05% - 3,49% + 3,50% 12,29% 12,37% 9,15% CET1 Dec 2020 Extraordinary Distribution of the Fair valuation and New Stake RWA's Other CET1 Dec 2020 dividend share premium d
Slide 12: The road to a new stage without Linea Directa
The road to a new stage without Linea Directa 12
Slide 13: Bankinter will remain loyal to its management principles
Bankinter will remain loyal to its managment principles 6 1 Focus on long term Operational shareholder value efficiency creation 5 2 Sustained growth of Prudent risk balance sheet and management activity 4 3 Geographic Business diversification diversification 13
Slide 14: Today we enjoy the greatest income strength and geographic and business diversification
Today we enjoy the greatest income strength and geographic and business sources diversification Contribution by business to Gross operating income # Income sources (excl. LDA) 4 8 3% 1% Of which 30% International Bkg. 22% 6% 1% 8% 31% 34% 2015 5% €1,569m 15% €1,709m 2020 13% 25% 34% Corporate/SME ba
Slide 15: Recurrent income growth represents a great strength to face the transaction
Recurrent income growth represents a great strength to face the transaction Gross operating income of the Banking activity (€million) 7% x2 CAGR 2010-2020 1.651 1.709 1.434 1.520 1.360 1.112 1.223 946 1.054 856 832 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 15
Slide 16: Well defined priorities…
Well defined priorities… 16
Slide 17: … by customer segments…
… by customer segments… ▪ Personal banking ▪ Private banking ▪ Consumer finance ▪ Corporate banking ▪ Medium size corporates ▪ SME’s 17
Slide 18: … by business segments..
… by business segments.. Mortgages Insurance Consumer Transactional finance business Brokerage AuM’s International Investment banking banking 18
Slide 19: … and by geographies
... and by geographies bankinter. < bankinter. FUTURO pout SSOR a Q Avant Money il | 19 bankinter.
Slide 20: Bankinter group plans to recover by 2023 the contribution to income from Linea Directa
Bankinter group plans to recover by 2023 the contribution to income from Linea Directa > 550 < 43 Net income (€mill.) Cost-to-income (%) 11.5 – 12.0 > 10 CET1 ratio (%) ROE (%) 20
Slide 21: Final remarks
Final remarks Bankinter crystallize a great financial investment and at the same time continues to deliver recurrent growth, and business and geographic diversification that will make it to return to the same profitability levels previous to this transaction by 2023. Bankinter shareholders will get
Slide 22: Thanks
bankinter.