Suncorp Group Limited · ASX:SUN
Suncorp — Debt Investor Presentation (September 2012)
26 slides from Suncorp's debt investor presentation, Sep 25, 2012
Slide 1: Suncorp Group Limited CPS2 Offer
For personal use only Suncorp Group Limited CPS2 Offer 25 September 2012 1
Slide 2: Important Notice
Important Notice This presentation has been prepared and authorised by Suncorp Group Limited (ABN 66 145 290 124) (“Suncorp”) in relation to the proposed offer by Suncorp of convertible preference shares (“CPS2”) (the “Offer”). The For personal use only Offer is made pursuant to a prospectus under P
Slide 3: For personal use only
For personal use only Section 1 Offer summary Section 2 Key features of CPS2 Section 3 About Suncorp Section 4 Offer process 3
Slide 4: Offer summary
For personal use only Section 1 Offer summary 4
Slide 5: Offer summary
Summary Offer summary For personal use only Issuer • Suncorp Group Limited (Suncorp) – Non-Operating Holding Company of the Suncorp Group – Top 20 ASX-listed company1 – Market capitalisation of $12.2 billion1 – A financial services group in Australia and New Zealand Security • Suncorp Convertible Pr
Slide 6: For personal use only
For personal use only Section 2 Key features of CPS2 6
Slide 7: CPS2 key terms: General
CPS2 key terms General For personal use only Issuer • Suncorp Group Limited (Suncorp) Security • Fully-paid, unsecured, non-cumulative convertible preference shares Issue Price • $100 per CPS2 Term • CPS2 are perpetual and do not have a fixed maturity date • However, Suncorp may elect to Exchange al
Slide 8: CPS2 key terms: Dividends
CPS2 key terms Dividends For personal use only Floating rate • Dividends are preferred, discretionary, non-cumulative floating rate payments and are expected to be franked fully franked Dividends • Dividends are scheduled to be paid quarterly in arrears, subject to certain Dividend Payment Tests Div
Slide 9: CPS2 key terms: Mandatory Conversion
CPS2 key terms Mandatory Conversion For personal use only Mandatory • The Mandatory Conversion Date is the first Dividend Payment Date to occur on or after 17 December Conversion 2019 on which the Mandatory Conversion Conditions have been satisfied • On the Mandatory Conversion Date, CPS2 Holders wi
Slide 10: CPS2 key terms: Exchange
CPS2 key terms Exchange For personal use only Exchange by • Suncorp may choose to Exchange all or some CPS2 after a Tax Event or a Regulatory Event Suncorp1 • Suncorp may choose to Exchange all or some CPS2 on 17 December 2017 • Suncorp may choose to Exchange all (but not some only) CPS2 after a Pot
Slide 11: CPS2 key terms: Non-viability
CPS2 key terms Non-viability For personal use only Non-Viability • A Non-Viability Trigger Event occurs where APRA determines that CPS2 must be Converted as without Trigger Event that Conversion, or a public sector injection of capital or equivalent capital support, APRA would consider Suncorp to be
Slide 12: Key risks associated with an investment in CPS2
CPS2 key terms Key risks associated with an investment in CPS2 For personal use only • The price at which CPS2 Holders are able to sell CPS2 on ASX is uncertain • There may be no liquid market for CPS2 • The market price of Suncorp Ordinary Shares may fluctuate due to various factors • There is a ri
Slide 13: Comparison with recent issues
CPS2 key terms Comparison with recent issues1 For personal use only Suncorp CPS2 CBA PERLS VI IAG CPS Westpac CPS Legal form • Preference share • Perpetual note • Preference share • Preference share ASX code • SUNPC • CBAPC • IAGPC • WBCPC • Expected to be 4.65% - Issue margin 4.85% • 3.80% • 4.00%
Slide 14: Ranking of CPS2
CPS2 key terms Ranking of CPS21 For personal use only Type Illustrative examples • Liabilities preferred by law including Higher ranking • Preferred and secured debt employee entitlement and secured creditors • Unsubordinated and unsecured debt • Bonds and general creditors • Subordinated and unsecu
Slide 15: About Suncorp
For personal use only Section 3 About Suncorp 15
Slide 16: Suncorp Group
Suncorp Group Financial services group in Australia and New Zealand For personal use only Top 201 ASX listed company $12.2 billion market capitalisation1 $96 billion in group assets 16,000 employees in Australia and New Zealand 9 million customers End to end ownership of brands and channels Note: 1
Slide 17: Suncorp Strategy
Suncorp Strategy One company many brands For personal use only Capital • Fungibility of capital across NOHC and portfolio Cost • Deliver scale cost benefits on third party procured goods / services Customer • Realising the benefit of 9 million customers and 13 brands Culture • Operating as: “One Com
Slide 18: FY12 Result overview
FY12 Result overview For personal use only FY12 FY11 %∆ General Insurance NPAT 493 392 25.8 Core Bank NPAT 289 259 11.6 Suncorp Life NPAT 251 149 68.5 Non-core Bank NPAT (263) (175) 50.3 Business line NPAT 770 625 23.2 Property consolidation, NOHC earnings & other (after tax) (46) (172) (73.3) Net P
Slide 19: General Insurance investment assets
General Insurance investment assets Conservatively managed investment portfolio For personal use only • Held against insurance funds • Held against shareholders funds • As at 30 June 2012 ($8,661m) • As at 30 June 2012 ($3,024m) Cash and short-term Cash and short-term deposits Property deposits 1% 2
Slide 20: Core Bank funding and liquidity
Core Bank funding and liquidity Access to a diverse range of funding sources For personal use only • The first regional bank to issue covered • Core Bank funding composition at 30 Jun 12 bonds, raising $1.6 billion (upsized from Liquid Short term funding $750 million) in June 2012 assets $6.5bn $6.5
Slide 21: Non-core Bank
Non-core Bank Continuing to run off ahead of expectations....down to $4.5bn For personal use only And fully match funded to maturity Note: 1 Includes Lease Finance from June 2012. 21 Section 3 About Suncorp
Slide 22: Pro forma capital position at June 2012
Pro forma capital position at 30 June 2012 Supporting growth in the core businesses For personal use only NOHC and Suncorp Pro forma General Pro forma $m Bank Life other Group Group Suncorp Insurance adjustments1 entities Total Group total Total 3,669 4,206 2,014 468 10,357 (235) 10,122 capital Targ
Slide 23: Offer process
For personal use only Section 4 Offer process 23
Slide 24: Offer structure
Offer structure For personal use only Institutional Offer • Offer to certain institutional investors Broker Firm Offer • Offer to Australian resident retail and high net worth clients of Syndicate Brokers Securityholder • Offer to Eligible Securityholders Offer – registered holders of Ordinary Share
Slide 25: Key dates
Key dates1 For personal use only Event Date Record date for determining Eligible Securityholders 17 September 2012 Lodgement of Prospectus with ASIC 25 September 2012 Bookbuild 2 October 2012 Announcement of the Margin 3 October 2012 Lodgement of the replacement prospectus with ASIC 3 October 2012 O
Slide 26: Contact directory
Contact directory Issuer For personal use only Tim Hughes Treasurer +61 7 3362 4042 Suncorp Group Limited Andrew Power Snr Manager Long Term Wholesale Funding +61 7 3362 4016 Joint Lead Managers ANZ Securities Limited Tariq Holdich +61 2 9226 6946 Nicholas Chaplin +61 2 9237 9518 National Australia
Suncorp Group — Debt Investor Presentation (September 2012) on 6ix