Standard Bank Oil ETN · JSE:SBOIL
Standard Bank Oil ETN — Standard Bank — Debt Investor Presentation (January 2006)
27 slides from Standard Bank Oil ETN's debt investor presentation, January 2006
Slide 1: Road show presentation
1 Road show presentation January 2006
Slide 2: Overview
Overview 2 Introduction Summary of Standard Bank Retail Notes Overview of Standard Bank Retail Note overview and mechanics Pricing Value proposition and positioning Primary offer process Additional information Disclaimer
Slide 3: Introduction
Introduction 3 Historically, the fixed income market has been reserved for wholesale investors BESA trading platform is limited to the wholesale market Bond IPO’s are privately placed with institutional investors Minimum subscription size of R1 million Money-market unit trusts have develop
Slide 4: Summary of Standard Bank Retail Notes
Summary of Standard Bank Retail Notes 4 Indicative term-sheet for initial issue Issue amount: Approximately [R250m] Issuer: The Standard Bank of South Africa Limited (“SBSA”) Issuer credit rating: AA+ (zaf) Status: Deposit (senior debt) Maturity: 3 years Interest: 3-month Jibar, paid qua
Slide 5: Overview of Standard Bank
Overview of Standard Bank RetailNotes Standard — r W Bank
Slide 6: Standard Bank Group
Standard Bank Group 6 Standard Bank Group* The Standard International Liberty Holdings Bank of South Africa operations operations (54.65%) Africa Retail Banking Liberty Life (1) (50.17%) Corporate and Investment Stanlib (2) Banking (37.4%) Notes: * Listed on the JSE 1. Standard Bank Group effective
Slide 7: Capital adequacy
Capital adequacy 7 16 350 June 2005 Dec 2004 % % 13 280 Group Tier I 10.8 11.0 10 210 Tier II and III 4.2 4.0 6 140 Total 15.0 15.0 SBSA 3 70 Tier I 8.5 9.1 0 0 Tier II and III 4.8 4.3 2000 2001 2002 2003 2004 HY2005 Tier I Tier II Tier III Risk-weighted assets Total 13.3 13.4 Capital adequacy facil
Slide 8: Return on equity
Return on equity 8 3,000 30 * 2,400 24 1,800 18 1,200 12 600 6 0 0 1999 2000 2001 2002 2003 2004 HY2005 NAV per share ROE Return on equity consistently better than objectives
Slide 9: Financial highlights
Financial highlights 9 June 2005 June 2005 June 2004 Reported under Normalised IFRS Headline earnings growth (%) Ç 18% Ç 23% Ç 13% Headline eps (cents) 327.4 304.8 249.0 Headline eps growth (%) Ç 31% Ç 22% Ç 12% ROE (%) 26.7 23.7 22.7 NAV per share (cents) 2 536 2 646 2 225 Dividend cover (times) 2.
Slide 10: Retail Note overview
Retail Note overview RetailNotes Standard — r W Bank
Slide 11: Overview
Overview 11 Strategy Standard Bank wishes to extend and diversify its deposit base by offering a deposit product that is: JSE listed and tradeable; and Yields a return linked to Jibar (which is traditionally a wholesale benchmark interest rate) Various tranches of Retail Notes will be issued
Slide 12: Basic mechanics of the Retail Notes
Basic mechanics of the Retail Notes 12 What is JIBAR? Johannesburg interbank agreed rate (JIBAR) is the average interest rate at which banks buy and sell money. It is a floating rate and is quoted in 1, 3, 6 and 12 month terms. The rate is calculated daily by SAFEX and can be viewed on Reuters Wha
Slide 13: Primary offer and secondary market process
Primary offer and secondary market process 13 ISSUER: JOHANNESBURG SECURITIES EXCHANGE Primary offer: Retail investor places order through broker. Broker collates orders with Standard Bank in the bookbuild STRATE LTD process. Settlement takes place through JSE and STRATE Secondary trading: Retail BR
Slide 14: Pricing
RetailNotes W Standard — r Bank
Slide 15: Comparative retail fixed income products
Comparative retail fixed income products 15 Product Term Cost Rate type Bank deposits Call to 60 mths Bank fees, withdrawal Floating and Fixed penalties Online investment/brokerage Call account Management fee depending Floating accounts on amount Money-market unit trusts Undated Annual management fe
Slide 16: Pricing
Pricing 16 Comparative pricing — YTM (fixed rate) Comparative pricing — spread to JIBAR Retail product Return 8.50% Government Retail Bond Fixed JIBAR + 50 bps 8.00% Standard Bank Retail Note JIBAR + 0 bps Standard Bank MM unit trust*** JIBAR – 44 bps 7.50% Money market call account***** JIBAR – 64
Slide 17: Trading cost
Trading cost 17 Worst case — with SBSA bid spread Best case — no bid spread Assumptions Assumptions Brokerage* 0.50% Brokerage* 0.50% Bid spread as % of dirty price 0.35% Bid spread as % of dirty price 0.00% Trade volume R 100,000.00 Trade volume R 100,000.00 Sell Sell Bid spread R 350.00 Bid spread
Slide 18: Breakeven analysis
Breakeven analysis 18 Worst case — with SBSA bid spread Best case — no bid spread Retail product Breakeven Retail product Breakeven Standard Bank MM unit trust 25 mths Standard Bank MM unit trust 15 mths Money market call account 17 mths Money market call account 11 mths Standard Bank Fixed Deposit
Slide 19: Value proposition and positioning
19 Value proposition and positioning
Slide 20: Value proposition
Value proposition 20 Better return than bank deposits and money-market unit trusts — but no greater credit risk The Notes offer an alternative asset class to retail investors looking to maximise their returns over the medium term, and manage portfolios diversified by asset class Stable interes
Slide 21: Primary offer key dates
Primary offer key dates RetailNotes W Standard — r Bank
Slide 22: Primary offer key dates
Primary offer key dates* 22 24 Jan 26 Jan 10 Feb 17 Feb 24 25 26 27 28 29 6 7 8 9 10 13 14 15 16 17 1 1 1 2 3 1 24 - 26 January 2006 Roadshow 2 10 February 2006 (Friday) Bookbuild — Orders may be submitted at any time from 24 January Book closes at 12h00 on 10 February 2006 3 17 February 2006 (F
Slide 23: Additional information
Additional information RetailNotes W Standard — r Bank
Slide 24: Additional information
Additional information 24 Standard Bank company information: www.standardbank.co.za Retail Note information: www.standardbank.co.za (under the Product and Services section) or www.securities.co.za Information on market rates: www.interestrates.co.za Standard Bank deposit rates: www.standardb
Slide 25: Thank you
Thank you RetailNotes W Standard — r Bank
Slide 26: Disclaimer
RetailNotes W Standard — r Bank
Slide 27: Disclaimer
Disclaimer 27 The Standard Bank of South Africa Limited (“SBSA”) has made every effort to ensure the accuracy and completeness of the information contained in this document. The information is not intended as advice and no warranty express or implied is made as to the accuracy, correctness or comple
Standard Bank — Debt Investor Presentation (January 2006) on 6ix