Suncorp Group Limited · ASX:SUN
Suncorp — Merger or Acquisition (July 2022)
14 slides from Suncorp's merger presentation, Jul 18, 2022
Slide 1: Sale of Suncorp Bank
For personal use only Sale of Suncorp Bank 18 July 2022 1
Slide 2: Key highlights
Key highlights For personal use only Sale of Suncorp Bank to ANZ for $4.9 billion, representing 1.3x P/NTA Significant value realised for Suncorp shareholders Simplified group with a market leading general insurance business Positive outcome for customers and staff Opportunity to enhance and acceler
Slide 3: Reshaping and simplifying
Reshaping and simplifying For personal use only New operating Sale of Suncorp Sale of the Renewed focus on model and Bank Australian Life organisational Sale of RACTI our core business Announced business structure joint venture February 2019 August 2019 July 2020 December 2021 July 2022 Aligning eve
Slide 4: Strategic rationale
Strategic rationale For personal use only – Maximise value for Suncorp shareholders with the offer representing an attractive premium – Position Suncorp Bank’s customers, people and purpose for greater success over the medium to long term – Alignment of ambition with ANZ on the Bank’s future potenti
Slide 5: A strengthening of Suncorp and ANZ commitment to Queensland
A strengthening of Suncorp and ANZ commitment to Queensland For personal use only Maintaining Suncorp – For a period of 3 years post completion: Bank’s strong Queensland – No net job losses in Queensland as a result of the acquisition presence – No further reductions in branch numbers in Queensland
Slide 6: Transaction overview
Transaction overview For personal use only Transaction – Sale of 100% of shares in SBGH Ltd, the holding company for Suncorp Bank (the Bank), to Australia and New structure Zealand Banking Group Limited (ANZ) – 100% cash consideration for the ordinary shares of the Bank – $4.9 billion cash considera
Slide 7: Indicative proceeds from transaction
Indicative proceeds from transaction For personal use only Indicative net transaction proceeds1 ‒ Upfront consideration of $4.9 billion ‒ A $50 million fee received over time Net Tangible Assets $3.6bn ($10 million per year for the brand licence) ‒ Implied accounting gain on sale (post- Premium paid
Slide 8: Bank Trading Update
Bank Trading Update FY221 FY21 Change – Lending growth supported by strong turnaround times and credit quality: ($m) ($m) (%) For personal use only – Time to unconditional approval 9.1 days in 2H22 vs 17.4 days in Net interest income 1,245 1,242 0.2 PCP2 Other operating income 3 39 (92.3) – Originat
Slide 9: The Suncorp Insurance portfolio
The Suncorp Insurance portfolio For personal use only Insurance (Australia) New Zealand AAMI Suncorp and GIO Niche Brands Vero National Brand Regional Champions Specialty Commercial Australia and New Zealand have large and established general insurance markets, with ~A$46bn and ~A$7bn market sizes r
Slide 10: Suncorp Insurance is an attractive investment opportunity for the future
Suncorp Insurance is an attractive investment opportunity for the future For personal use only – Markets are well-regulated with established players Attractive General – Large and profitable markets in Australia and New Zealand, with $46b and $7b GWP respectively Insurance markets – Growth rates are
Slide 11: Reaffirming FY23 targets
Reaffirming FY23 targets For personal use only Returns Cash return on equity above the through-the-cycle cost of equity Key divisional metrics General insurance Underlying ITR of 10 – 12% by FY23 Banking Cost-to-income ratio of ~50% by FY23 11
Slide 12: For personal use only
SUNCORP (_) SUNCORP Building futures and protecting what matters
Slide 13: Appendix: Transitioning Suncorp Bank to ANZ
Appendix: Transitioning Suncorp Bank to ANZ For personal use only Pre-completion Transitional period Brand licencing period ~12 months ~2 years ~5 years with potential for additional 2 years – Continued delivery of the Bank’s strategic – Two year Transitional Services Agreement – A 5 year Brand Lice
Slide 14: Important disclaimer
Important disclaimer For personal use only This presentation contains general information which is current as at 18 July 2022. It is information given in summary form and does not purport to be complete. It is not a recommendation or advice in relation to the Group or any product or service offered