Abrdn European Logistics Income Plc · LSE:ASLI
Abrdn European Logistics Income — Aberdeen Asset Management — Merger or Acquisition (March 2009)
31 slides from Abrdn European Logistics Income's merger presentation, Mar 18, 2009
Slide 1: Integration of businesses from Credit Suisse
Aberdeen Asset Management Integration of businesses from Credit Suisse 18 March 2009 Andrew Laing, Deputy Chief Executive Ken Fry, Chief Operating Officer
Slide 2: Aberdeen has an excellent track record in integrating businesses
Aberdeen has an excellent track record in integrating businesses • Become part of normal business • Experienced staff • BNP outsourcing partnership • Only a handful of acquisitions have involved major integrations No of transactions 1980s 1990s 2000s 5 Acquisition of asset management 4 Acquisition o
Slide 3: Essential elements – 'no surprises'
Essential elements – ‘no surprises’ Revenue – joint communication Clients Retention and meetings underway Motivation – consultation Staff Clarity initiated with AAM & outsourcers BNP Paribas – joint project team Operations Systems established Recurring costs – in line with Costs Project costs expect
Slide 4: DeAM/Credit Suisse – comparisons
DeAM/Credit Suisse – comparisons DeAM CS Assets under Management £46.3bn £40.1bn (CHF75bn) Number of funds/portfolios Approx 450 Approx 350 Number of countries 2 8* Number of staff in scope 400 400 Timing Inflexible Flexible Systems development Essential Immaterial Same strategy as DeAM but IT platf
Slide 5: DeAM/Credit Suisse – key differences
DeAM/Credit Suisse – key differences DeAM DeAM systems unsustainable DeAM Huge system development required for AAM and BNP DeAM Migration time-scale dependent on system development Multi-jurisdictional transaction. More complications but Credit Suisse less risk Credit Suisse Most locations covered b
Slide 6: Client retention
Client retention Priority Client retention is key to the success of the integration Client Meetings Joint client meetings Communication Programme of communication and consultation underway Appointments Paul Griffiths appointed Global Head of Fixed Income Products Acquisition strengthens offering in
Slide 7: Summary
Summary • Client retention programme underway • Integration progressing on target to original timetable • Full co-operation established between AAM, CS and BNP • Estimated one-off integration & migration costs of £25 million will be incurred over the period of the Transitional Services Agreement • B
Slide 8: Migration planning
Migration planning Due Diligence Integration planning from an operations perspective Characteristics What this told us about the operational characteristics Strategy Migration strategy, TSA & Aberdeen operations strategy Experience Lessons learned from previous acquisitions Governance Project plan,
Slide 9: Characteristics of businesses to be acquired
Characteristics of businesses to be acquired Due Diligence Access to CS staff to identify business and system models Business Model Operates as series of independent investment boutiques London, Zurich, Paris, Frankfurt, Singapore, Sydney, Locations Tokyo and New York. Plus Italy, Hong Kong and Taiw
Slide 10: Overview of businesses to be acquired
Overview of businesses to be acquired Portfolio management Order management Trade support Asset servicing Data management Performance Reporting Investment accounting Fund accounting Transfer agency Custody & trustee Zurich London New Frankfurt Paris Singapore Sydney Lux York 9
Slide 11: Aberdeen Global Operating Model
Aberdeen Global Operating Model Trading & Execution AAM Charles River Data Management AAM Data Warehouse Netik and CADIS Trade Support BNP Tradeflow Asia EMEA US PAC Investment Operations SS MCH BNP Hi- Port BNP Hi-Port BNP Hi-Port Citi InvestOne Client Reporting AAM LARS BNP IRP BNP IRP BNP IRP AAM
Slide 12: Migration strategy
Migration strategy Phased migration to the Aberdeen Global Operating Model Strategy (GOM) Transition Transitional Services Agreement for existing CS systems Migration US, EMEA and Singapore business to migrate to GOM Integration Sydney and Tokyo to be integrated into AAM GOM Migrations at close wher
Slide 13: Aberdeen operational strategy
Aberdeen operational strategy AAM Strategy Global platforms to support regional administration Consistency Consistent integration strategy for all acquisitions Investment Long term investment programme in global platforms Outsourcing Partnership with outsourcers and global roadmap Regionalisation Re
Slide 14: Aberdeen Global Operating Model
Aberdeen Global Operating Model Charles River AAM Global decision support, trading and compliance Tradeflow BNP global trade matching and settlement service Data Warehouse AAM and BNP data warehouses (Netik and CADIS) Global BNP investment operations systems and flexibility Accounting to support mul
Slide 15: DeAM Lessons Learned
DeAM Lessons Learned DeAM Short transition period DeAM Formidable system developments required DeAM Project management resources stretched Credit Suisse Longer Transitional Services Agreement Credit Suisse Focus is on capacity planning rather than development Credit Suisse Comprehensive programme ma
Slide 16: Transitional Services Agreement (TSA)
Transitional Services Agreement (TSA) TSA Support existing services between closing and migration Investment Investment decisions cannot be shared with AAM or CS Chinese Walls Needed to separate acquired business from AAM and CS Separation Physical separation in London, Sydney and Tokyo Services Min
Slide 17: Key milestones
Key milestones 1st contract closing (Singapore, Sydney, Hong Kong) 30 April 09 23 Singapore managed portfolios migrate to AAM GOM 2nd contract closing (UK, France, Germany, Zurich, US, Japan) 30 June 09 120 portfolios migrate to AAM GOM Sydney State Street operation integrated into AAM GOM Q3 09 Sta
Slide 18: Project governance
Project governance Project Board AAM Group Integration Steering Credit Suisse Management Board Committee Programme Management Group (Project Office) AAM/BNP Communication Functional Regional/Country CS Separation Migrations Team Leads Leads Co-ordination 17
Slide 19: Fund rationalisation programme
Fund rationalisation programme Fund rationalisation to be considered in all locations where Scope both CS and AAM have locally domiciled funds Luxembourg is the most complex location, with a number Luxembourg of tax, legal and regulatory considerations CS UK OEIC fund range reviewed – potential for
Slide 20: Summary
Summary Strategy Clear operational strategy and low risk migration strategy Technology Aberdeen Global Operating Model offers a stable platform Partnership High degree of co-operation between AAM, CS & BNP Governance Comprehensive governance structure in place Experience Lessons learned from previou
Slide 21: Appendix
YN ez Aberdeen Appendix
Slide 22: CSAM – overview of businesses acquired
CSAM – overview of businesses acquired Multi-Asset 30 Nov 08 CHF bn £ bn 1% Money market Equities 40% Money market 29.9 16.0 20% Fixed income 29.5 15.8 Equities 15.1 8.1 Multi-Asset 0.4 0.2 Fixed income 39% 74.9 40.1 Mandates 33.4 17.9 Funds 41.5 22.2 74.9 40.1 21
Slide 23: CSAM – transformational deal for Aberdeen…
CSAM – transformational deal for Aberdeen… • Purchase of operating subsidiaries in Australia, Hong Kong, Japan and Singapore Transaction Description and UK pooled pensions subsidiary • Business purchases in UK, Europe and US • Consideration of up to 240 million new Aberdeen ordinary shares, to be is
Slide 24: CSAM – transaction summary
CSAM – transaction summary • Acquisition of parts of Credit Suisse’s Global Credit Suisse Asset Management Investors business Global Investors • Traditional long-only global asset management • Consideration: issuance of new Aberdeen shares to Credit Suisse - Stake of up to 24.97% of the enlarged Fix
Slide 25: Aberdeen – pro forma enlarged AuM
Aberdeen – pro forma enlarged AuM Aberdeen – Nov 08 Target businesses – Nov 08 Pro forma Multi-Asset Multi-Asset Property 5% 1% 17% Equities 27% Equities Multi-Asset Property 4% Equities 20% 24% 25% Money market 40% Money market 11% Fixed income Fixed income Fixed income 44% 39% 42% Total: £102.6bn
Slide 26: AuM by management location at 30 Nov 08
AuM by management location at 30 Nov 08 CHF bn £ bn London 51.7 27.7 Sydney 10.9 5.8 New York 7.7 4.1 Zurich 1.7 0.9 Singapore 1.6 0.9 Frankfurt 0.8 0.4 Tokyo 0.5 0.3 74.9 40.1 25
Slide 27: Funds by country of domicile at 30 Nov 08
Funds by country of domicile at 30 Nov 08 CHF bn £ bn Luxembourg 29.1 15.6 Australia 4.2 2.2 UK 2.6 1.4 Japan 1.4 0.8 Switzerland 1.3 0.7 USA 1.2 0.6 Germany 1.0 0.5 Other 0.7 0.4 41.5 22.2 26
Slide 28: Equity AuM at 30 Nov 08
Equity AuM at 30 Nov 08 CHF bn £ bn UK 5.0 2.7 Asia 3.8 2.0 Emerging markets 1.7 0.9 Europe 1.7 0.9 Specialist 1.7 0.9 Global 1.2 0.7 15.1 8.1 Mandates 4.2 2.3 Funds 10.9 5.8 15.1 8.1 27
Slide 29: Fixed income AuM at 30 Nov 08
Fixed income AuM at 30 Nov 08 CHF bn £ bn Europe 10.4 5.6 Asia & Australasia 9.1 4.9 Global 4.6 2.4 US Core 1.6 0.9 UK 1.5 0.8 Convertibles 1.0 0.5 Emerging markets 0.6 0.3 Currency management 0.6 0.3 29.4 15.7 Mandates 15.8 8.4 Funds 13.6 7.3 29.4 15.7 28
Slide 30: Creating value for shareholders and clients
Creating value for shareholders and clients Enhanced global Scale & financial distribution & Significant cost strength broadened client efficiencies base Transformational transaction with significant value creation • Significant cost synergies – marginal cost: income ratio expected to be 35% - 40% •
Slide 31: Disclaimer
Disclaimer The information contained herein, including any opinions or forecasts have been obtained or are based on sources believed by Aberdeen to be reliable, but Aberdeen does not warrant the accuracy, adequacy or completeness of the same, and expressly disclaims liability for any errors or omiss
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