Royal Bank Of Canada · TSX:RY
Royal Bank Of Canada — Merger or Acquisition (June 2005)
15 slides from Royal Bank Of Canada's merger presentation, Jun 9, 2005
Slide 1: RBC Dexia Investor Services
Royal Bank of Canada and Dexia Announce the Creation of RBC Dexia Investor Services A unique proposition for institutional investors worldwide Highlights for the Investment Community June 9, 2005 1
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements From time to time, we make written and oral forward-looking statements within the meaning of certain securities laws, including the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. We may make such statements
Slide 3: RBC and Dexia Form Institutional Investor Services JV
Royal Bank of Canada ("RBC") and Dexia Form Institutional Investor Services JV Overview Transaction The new company Financial impact Conclusion Royal Bank of Canada (RBC) and Dexia to combine their respective institutional investor services businesses * A leader in global custody A leader in Europea
Slide 4: High Growth in Savings Underpin Attractiveness of Securities Services Industry
High Growth in Savings Underpin Attractiveness of Securities Services Industry Transaction The new company Financial impact Conclusion Total Industry Region/Fund Type Assets Under Custody Projected 5-yr Growth (CAD Trillion) (% p.a.) Europe Collective Funds (Mutual Funds) 5.1 18-20 Pensions 3.2 8-10
Slide 5: Benefits of the Transaction
Benefits of the Transaction Transaction The new company Financial impact Conclusion RBC’s global custody and Dexia’s investor services capabilities create a powerful franchise to compete in Europe, the highest-growth securities services market in the world Greater geographic reach with local market
Slide 6: RBC Dexia Investor Services At a Glance
RBC Dexia Investor Services At a Glance Transaction The new company Financial impact Conclusion Name: RBC Dexia Investor Services Head office: London, U.K. Employees: Approximately 3,500 Board of Equal representation by both parent companies directors: Chairman: Marc Hoffmann (rotational basis) Vice
Slide 7: Combination of Market Leaders
Combination of Market Leaders Transaction The new company Financial impact Conclusion RBC’s Institutional Dexia Fund Services RBC Dexia Investor Services Investor Services (Pro forma) Head office Toronto, Canada Luxembourg London, U.K. Employees 1,900 1,600 3,500 Assets under custody (AUC)¹ CAD1,694
Slide 8: Commitment to Institutional Investor Services With Complementary Capabilities
Commitment to Institutional Investor Services With Complementary Capabilities Transaction The new company Financial impact Conclusion RBC’s Institutional Investor Services Recognised globally as a leading global custodian servicing institutional investors for more than 100 years Leadership in Canada
Slide 9: Combined Cross-Border Coverage Across Canada, Europe, UK and Australasia
Combined Cross-Border Coverage Across Canada, Europe, UK and Australasia Transaction The new company Financial impact Conclusion RBC Dexia Investor Services Revenues by Geography Belgium 3% Other 4% (Pro forma, fiscal 2004*) Australia 3% France 4% Ireland 4% Spain 4% Canada 34% UK Canada 14% Luxembo
Slide 10: Significant Size and Scale
Significant Size and Scale Transaction The new company Financial impact Conclusion Client Assets Under Custody¹ Top Global Custodians At December 31, 2004 USD billion JV represents sizeable operation with revenues 1 Bank of New York 9,700 of approximately CAD 810 million (€506 m) and 2 State Street
Slide 11: Full Suite of Products
Full Suite of Products Transaction The new company Financial impact Conclusion Global Custody Investment Administration Transfer Agency Portfolio accounting Subcustody network of 81 markets Fund administration Settlement & safekeeping Hedge fund services Shareholder services Corporate actions Truste
Slide 12: Servicing Broad Range of Sophisticated Institutional Investors
Servicing Broad Range of Sophisticated Institutional Investors Transaction The new company Financial impact Conclusion Client Assets Under Custody (Pro forma, fiscal 2004) Private Banking Assets Financial 1% Institutions 10% Well positioned in the high-growth mutual fund segment Institutional Strong
Slide 13: Compelling Synergies – CAD 80m pre-tax expected in the medium term
Compelling Synergies – CAD 80m (€50 m) pre-tax expected in the medium term Transaction The new company Financial impact Conclusion Cost Synergies Revenue Synergies Rationalize subcustody network Cross-sell RBC global custody services to existing Dexia fund administration and transfer Reduce IT infra
Slide 14: Financial Impact on RBC
Financial Impact on RBC Transaction The new company Financial impact Conclusion RBC will contribute its existing institutional investor services business including the net assets that support the operation Under current accounting interpretations: RBC's share of JV net income in Year 1 (2006), inclu
Slide 15: A Powerful Proposition
A Powerful Proposition Transaction The new company Financial impact Conclusion Significant scale with a presence across Canada, Europe, U.K. and Australasia offering a full suite of products for sophisticated institutional investors Well positioned to realise synergy benefits and capitalise on new m
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