Anz Group Holdings Limited · ASX:ANZ
Anz — Merger or Acquisition (August 2009)
23 slides from Anz's merger presentation, Aug 4, 2009
Slide 1: Acquisition of Selected RBS Businesses
For personal use only Acquisition of Selected RBS Businesses 4 August 2009 * See slide 22 ( disclaimer) regarding methodology and applicable dates
Slide 2: Transaction Overview and ANZ's Super Regional Objective
For personal use only Transaction Overview and ANZ’s Super Regional Objective Mike Smith Chief Executive Officer 1 NYGRAPH\182597
Slide 3: Overview of Transaction
Overview of Transaction For personal use only ● ANZ has agreed to acquire the RBS¹ – Retail, wealth & commercial businesses in Taiwan, Singapore, Indonesia² and Hong Kong; – Institutional businesses in Taiwan, the Philippines and Vietnam ● Purchase price of ˜US$550m (˜A$685m) being a US$50m (˜A$60m)
Slide 4: Strategy launched in late 2007 is clear and on track
Strategy launched in late 2007 is clear and on track For personal use only TRANSFORM OUT PERFORM RESTORE • Quality on par with global leaders in our markets Create a leading • Institutional back to Super Regional bank system • Best of breed customer experience • Restore “jaws” – increase Global qual
Slide 5: RBS acquisition aligns well with our Asia Pacific strategy
RBS acquisition aligns well with our Asia Pacific strategy For personal use only Strategic Imperative Top 4 foreign bank • Greater China: China, Hong Kong, Taiwan • India Franchise Significant Major bank (top 4) • Vietnam, Malaysia, Indonesia Network Enhancement Network clients, product and liquidit
Slide 6: Super Regional ambitions even more compelling today
Super Regional ambitions even more compelling today For personal use only ● Global economy stabilising - large developed economies not expected to show real growth until 2011 ● Asia recovering more quickly – regional GDP expected to grow at an annual of 5.6% in 2010¹. Demand for financial services i
Slide 7: Asia platform strengthened during 2008 & 2009
Asia platform strengthened during 2008 & 2009 For personal use only ● Profit from Asia equivalent to ˜10%¹ of Group underlying profit Financial ● Institutional and partnerships strong contributors to profit growth ● Increased staff from ˜5,500 to ˜8,000 FTE² People ● Increased management bench stren
Slide 8: Transaction Detail and ANZ's Asia Pacific Strategy
For personal use only Transaction Detail and ANZ’s Asia Pacific Strategy Alex Thursby CEO Asia Pacific 7 NYGRAPH\182597
Slide 9: Summary of the RBS Asia businesses being acquired
Summary of the RBS Asia businesses being acquired For personal use only Taiwan Hong Kong ● Retail, Commercial & Institutional ● Retail & Commercial Greater ● Branches: 6 ● Branches: 21 (+16 licenses) China ● Customers: ˜30k ● Customers:˜1.3m ● Deposits ˜US$2.7bn (˜A$3.4bn) ● Deposits ˜US$1.6bn (˜A$2
Slide 10: Acquisition boosts Asia Pacific strategy particularly in retail and wealth
Acquisition boosts Asia Pacific strategy particularly in retail and wealth For personal use only • Accelerates build out of Greater China and strengthens our business in SE Asia • Accelerates build out of wealth and retail platform (includes credit cards) to balance institutional growth • Significan
Slide 11: Attractive assets at an attractive price
Attractive assets at an attractive price For personal use only ● Premium of US$50m (˜A$60m) to the fully provided net tangible book value¹ Price on closing. Equivalent to 1.1x recapitalised book value ● ANZ to acquire the businesses on a fully provisioned basis ● Operating income of ˜US$460m² (˜A$63
Slide 12: Delivery of synergies will create significant value
Delivery of synergies will create significant value For personal use only Business ● Transform sale and service model in Retail and Wealth to drive profitability Model ● Adopt liability led model for SME transformation ● Change Commercial to a regional-based relationship model ● Achieve cost savings
Slide 13: Detailed, early planning to mitigate integration complexity
Detailed, early planning to mitigate integration complexity For personal use only Integration Philosophy 1. Adopt and adapt the best of both organisations 2. Clear accountability for execution and timing and tight cost control 3. Execution by joint integration team Action Plan Goal • Integration tea
Slide 14: Summary
Summary For personal use only ● Acquisition is a strong fit with ANZ’s Asia Pacific strategy ● Provides a meaningful boost for our Greater China retail and wealth businesses ● Attractive assets at an attractive price ● Cash EPS accretive within 2 years post acquisition ● Significant synergy opportun
Slide 15: Appendices
For personal use only Appendices
Slide 16: Snapshot of combined operation (ANZ Group + RBS Asia)
Snapshot of combined operation (ANZ Group + RBS Asia) Total For personal use only (A$m) ANZ RBS Operating income 12,588 628 (US$460m) 13,216 Operating expenses 6,085 501 (US$372m) 6,586 Profit before provisions 6,503 127 (US$88m) 6,630 Provisions 2,640 238 (US$176m) 2,878 Net loans & Advances 356,80
Slide 17: Strong group capital position maintained post acquisition
Strong group capital position maintained post acquisition For personal use only Basel II Capital Position ANZ Group Risk Weighted Assets Impact (Tier 1 ratio) (1H09) A$bn US$6.4bn (A$8.0bn) RWAs acquired and A$8bn¹ approx US$150m (A$185m) capital deductions ~11.4 300 (US$6.4bn) A$289 A$281 0.7 9.8 0
Slide 18: Snapshot of combined operation (ANZ Asia Pacific + RBS Asia)
Snapshot of combined operation (ANZ Asia Pacific + RBS Asia) Total For personal use only (A$m) ANZ APEA RBS Operating income 1,761 628 (US$460m) 2,389 Operating expenses 774 501 (US$372m) 1,275 Profit before provisions 987 127 (US$88m) 1,114 Provisions 242 238 (US$176m) 480 Net loans 22,583 3,996 (U
Slide 19: Proforma – APEA provisioning position
Proforma – APEA provisioning position For personal use only Provisions charge Provisions balance RBS loans and advances (A$m) (A$m) by customer type (A$m) A$985 A$246 A$234 Coverage 728 ratio 353 • CP as a % of Credit US$583m RWAs: 6.9% 125 US$283m 113 • IP balance as a % of 1,062 NLAs: 83% 2,206 US
Slide 20: ANZ's Asian business pre-acquisition
ANZ’s Asian business pre-acquisition MAINLAND CHINA For personal use only KOREA Established 1986. Well advanced organic strategy. Established 1978. Branch in Seoul Branches in Beijing, Shanghai & Guangzhou ~50 staff* China local incorporation application progressing The only Australian com
Slide 21: Value to ANZ - acquisition brings distribution and customers
Value to ANZ - acquisition brings both distribution and customers to accelerate targeted growth segments For personal use only • Springboard for institutional growth • Base to build Greater China commercial business proposition (second leg in Greater China) • Scaleable credit card base • Substantial
Slide 22: ANZ - Summary integration process
ANZ - Summary integration process For personal use only Regional planning Country execution 1 2 3 Post-completion – Pre-completion – Pre-signing integration integration planning execution Integration teams Stabilisation established Integration Communication & engagement programs rolled out Value cre
Slide 23: Disclaimer
Disclaimer The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is For personal use only information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to inv
Australia and New Zealand Banking Group Limited (ANZ) — Merger or Acquisition (August 2009) on 6ix