Anz Group Holdings Limited · ASX:ANZ
Anz — Merger or Acquisition (July 2022)
14 slides from Anz's merger presentation, Jul 18, 2022
Slide 1: Sale of Suncorp Bank
Sale of Suncorp Bank 18 July 2022 1
Slide 2: Key highlights
Key highlights 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 accelerate the plan for Sunco
Slide 3: Reshaping and simplifying
Reshaping and simplifying 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 everyone at Suncorp to co
Slide 4: Strategic rationale
Strategic rationale – 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 potential – Focus on strategi
Slide 5: A strengthening of Suncorp and ANZ commitment to Queensland
A strengthening of Suncorp and ANZ commitment to Queensland 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 – Supporting ANZ’s exi
Slide 6: Transaction overview
Transaction overview 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 consideration, and a minimum br
Slide 7: Indicative proceeds from transaction
Indicative proceeds from transaction 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 to NTA $1.3bn tax) of
Slide 8: Bank Trading Update
Bank Trading Update FY221 FY21 Change – Lending growth supported by strong turnaround times and credit quality: ($m) ($m) (%) – 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) – Origination LVR 66% in 2H22 vs
Slide 9: The Suncorp Insurance portfolio
The Suncorp Insurance portfolio 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 respectively1 With a st
Slide 10: Suncorp Insurance is an attractive investment opportunity for the future
Suncorp Insurance is an attractive investment opportunity for the future – 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 attractive across all
Slide 11: Reaffirming FY23 targets
Reaffirming FY23 targets 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: Suncorp - Building futures and protecting what matters
SUNCORP (_) SUNCORP Building futures and protecting what matters
Slide 13: Appendix: Transitioning Suncorp Bank to ANZ
Appendix: Transitioning Suncorp Bank to ANZ 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 Licencing Agreement (BLA)
Slide 14: Important disclaimer
Important disclaimer 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 by Suncorp or any of i
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