Suncorp Group Limited · ASX:SUN
Suncorp — Debt Investor Presentation (April 2013)
26 slides from Suncorp's debt investor presentation, Apr 10, 2013
Slide 1: Subordinated Notes Offer
For personal use only Suncorp Group Limited Subordinated Notes Offer 10 April 2013 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 Suncorp Subordinated Notes (the “Offer”). The Offer is made pursuant to a prospectus under Part 6D.2 of the Corporations Act 2
Slide 3: For personal use only
For personal use only Section 1 Offer summary Section 2 About Suncorp Section 3 Features of Notes 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 Issuer • Suncorp Group Limited (Suncorp) For personal use only – Top 20 ASX-listed company1 – Market capitalisation of $14.9 billion1 – A financial services group in Australia and New Zealand Security • Suncorp Subordinated Notes (Notes) Offer size • $500 million with the abili
Slide 6: For personal use only
For personal use only Section 2 About Suncorp 6
Slide 7: Suncorp Group
Suncorp Group Financial services group in Australia and New Zealand For personal use only Top 201 ASX listed company $14.9 billion1 market capitalisation $93.5 billion in group assets 15,000 employees in Australia and New Zealand 9 million customers End to end ownership of brands Note: 1 Based on th
Slide 8: Suncorp Strategy
Suncorp Strategy For personal use only One Company Many Brands • Leveraging the diversity and capital Capital return of each business for the benefit of the entire Group • Achieving the full benefits of scale of an ASX 20 organisation, without diminishing Cost the differentiation of the Group’s bran
Slide 9: 1H13 result overview
1H13 result overview For personal use only 1H13 1H12 %∆ General Insurance NPAT 564 162 large Core Bank NPAT 144 156 (7.7) Suncorp Life NPAT 51 133 (61.7) Business lines NPAT 759 451 68.3 Non-core Bank and other (143) (15) n/a Acquisition amortisation (42) (47) (10.6) Net Profit After Tax 574 389 47.
Slide 10: Top line growth
Top line growth Growth across all three business lines ($m) For personal use only General Insurance GWP Suncorp Life individual in-force business 6.6% 9.6% 739 4,225 3,855 693 642 3,563 1H11 2H11 1H12 2H12 1H13 1H11 2H11 1H12 2H12 1H13 Core Bank lending assets Shareholder returns (cps) 12.2% Interim
Slide 11: Healthy margins
Healthy margins With profitable growth For personal use only Target range 1.75% to 1.85% 11 Section 2 About Suncorp
Slide 12: Core business profitability
Core business profitability Good earnings and great potential (NPAT $m) For personal use only Core Bank Suncorp Life General Insurance 759 606 582 441 463 451 564 347 331 337 162 210 292 100 105 133 117 88 118 51 61 154 114 110 149 156 133 144 1H10 2H10 1H11 2H11 1H12 2H12 1H13 12 Section 2 About Su
Slide 13: Core Bank funding and liquidity
Core Bank funding and liquidity Access to a diverse range of funding sources For personal use only Funding position Core Bank funding composition at 31 Dec 12 Liquid Short term funding $6.9bn $6.9bn assets applied to liquids • Funding position underpinned by access to $2.1bn Short term to loans a wi
Slide 14: Non-core Bank
Non-core Bank Run-off continues ahead of target For personal use only Non-core Bank ($bn) Suncorp Bank portfolio split Impaired Performing 7% Non-core 8% 2.1 Agri 11% Commercial 2.3 (SME) 13.5 1% Consumer 2.2 7.2 Mortgages 1.6 73% 3.5 1.8 HY10 HY11 HY12 HY13 14 Section 2 About Suncorp
Slide 15: Pro forma LAGIC & Basel III capital adequacy
Pro forma LAGIC & Basel III capital adequacy As at 31 December 2012 For personal use only NOHC and Suncorp Pro forma General Pro forma $m Bank1 Life other Group Group Suncorp Insurance adjustments1 entities Total Group total Total 4,171 3,984 785 471 9,411 (491) 8,920 capital Target 3,007 4,085² 499
Slide 16: Features of Notes
For personal use only Section 3 Features of Notes 16
Slide 17: Notes Key terms
Notes Key terms For personal use only Issuer • Suncorp Group Limited (Suncorp) Security • Unsecured, subordinated, cumulative notes Offer size • $500 million with the ability to raise more or less Regulatory • Notes are eligible for inclusion as Tier 2 Capital and qualify as regulatory capital withi
Slide 18: Notes Key terms (cont'd)
Notes Key terms (cont’d) • Interest Rate = Bank Bill Rate + Margin For personal use only Interest Rate • Bank Bill Rate is the 90 day BBSW rate on the first Business Day of the relevant Interest Period • Margin expected to be 2.85% – 3.10%, to be determined under the Bookbuild Interest Payment • 22
Slide 19: Options for Eligible CPS Holders
Notes Options for Eligible CPS Holders For personal use only Apply to reinvest • Eligible CPS Holders may apply for their CPS to be Resold to Suncorp for $100 per CPS on 22 May 2013 and the some or all of your Resale proceeds reinvested in Notes CPS in Notes • Eligible CPS Holders who elect to reinv
Slide 20: Comparison with term deposits and CPS2
Notes Comparison with term deposits and CPS2 For personal use only Term deposits Notes CPS2 • Bank, credit union or building society (e.g. Issuer • Suncorp • Suncorp Suncorp Bank) Legal form • Deposit • Unsecured subordinated debt obligation • Preference share Protection under the Australian Governm
Slide 21: Ranking of Notes
Notes Ranking of Notes1 For personal use only Type Illustrative examples • Liabilities preferred by law including Higher ranking • Preferred and secured debt employee entitlement and secured creditors • Bonds and notes, trade and general • Unsubordinated and unsecured debt creditors • The Notes and
Slide 22: Key risks associated with an investment in Notes
Notes Key risks associated with an investment in Notes For personal use only • Notes are not deposit liabilities or a protected account or protected liability of Suncorp or any other member of the Suncorp Group for the purposes of the Banking Act or the Insurance Act and the payment of Interest and
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 (subject to foreign selling restrictions) Reinvestment • Offer to Eligible CPS Holders Offer –
Slide 25: Key dates
Key dates1 Event Date For personal use only Lodgement of Prospectus with ASIC 10 April 2013 Bookbuild 17 April 2013 Announcement of the Margin 18 April 2013 Lodgement of the replacement prospectus with ASIC 18 April 2013 Opening Date 18 April 2013 Closing Date for the Reinvestment Offer and Security
Slide 26: Contact directory
Contact directory Issuer For personal use only John O'Farrell Group Head, Capital & Investments +61 2 8275 3191 Suncorp Group Limited Simon Lewis Executive Manager, Funding | Treasury +61 7 3362 4037 Joint Lead Managers ANZ Securities Tariq Holdich +61 2 9226 6946 Nicholas Chaplin +61 2 9237 9518 Na
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