Kbc Group N.v. · EURONEXT:KBC
Kbc — Merger or Acquisition (November 2021)
21 slides from Kbc's merger presentation, Nov 15, 2021
Slide 1: Acquisition of Raiffeisenbank Bulgaria
KBC Group Investor presentation Acquisition of Raiffeisenbank Bulgaria More information: www.kbc.com KBC Group - Investor Relations Office – E-mail: IR4U@kbc.com 1
Slide 2: Important information for investors
Important information for investors This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by the KBC Group. KBC believes that this presentation is reliable, although some information is condensed and th
Slide 3: Executive Summary
Executive Summary 1• Transaction summary: KBC Bank NV has agreed to acquire 100% of Raiffeisenbank Bulgaria (RBBG) from RBI for a total consideration of 1 015m EUR, paid in cash. 2• Indisputable strategic rationale: Strengthening our #3 position in the Bulgarian banking market. The proforma combined
Slide 4: Agenda
Agenda 1 Transaction overview 2 Strategic rationale 3 Financial impact 4 Summary 4
Slide 5: Transaction highlights
Transaction highlights KBC Bank NV has agreed to acquire 100% of Raiffeisenbank BG (RBBG) for a total consideration of 1015m EUR (the “Transaction”). The transaction perimeter also includes a leasing company (10.5% market share, 234m EUR portfolio), a small asset management firm (9.7% market share
Slide 6: RBBG Overview & Transaction Perimeter
RBBG Overview & Transaction Perimeter RBBG - An Established Universal Banking Franchise in Bulgaria Business Overview & Key Highlights(1) Transaction Perimeter & Ownership Structure ● Raiffeisenbank Bulgaria (founded 1994, HQ: Sofia) is a well-established universal bank in Bulgaria ● Full range of b
Slide 7: Recap: Overview of RBBG Business Segments
Recap: Overview of RBBG Business Segments RBBG is Present Across UBB’s Entire Client Footprint Corporate Private Client Corporate Micro & SME o/w Micro Non-client & Others Traditional and digital banking Portfolio 4,400 clients, incl. leading Lending and non-lending services, Financing for locally r
Slide 8: RBBG - Key Highlights
RBBG - Key Highlights Attractive Franchise with High-Quality Assets and Strong Profitability Attractive Client Franchise • Footprint: universal banking franchise active in all core products & ancillaries Loan M/S: 8.4% • Market position: attractive market shares across all products Deposit M/S: 7.6%
Slide 9: Overview of RBBG
Overview of RBBG Track record of strong pre-impairment profitability RBBG pre-provision earnings (m EUR) 85 74 79 75 80 69 71 68 72 66 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E RBBG net profit (m EUR) 71 69 65 66 56 25 31 30 10 -15 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E Source:
Slide 10: Purchase price & closing requirements
Purchase price & closing requirements KBC Bank NV has agreed to acquire 100% of Raiffeisenbank Bulgaria (RBBG) for a total cash consideration of 1015m EUR (the “Purchase Price”), payable at Purchase Price closing Considerations EPS accretive from year 1 onwards. The Purchase Price represents a 1
Slide 11: Agenda
Agenda 1 Transaction overview 2 Strategic rationale 3 Financial impact 4 Summary 11
Slide 12: In-market combination with sound strategic and financial rationale
In-market combination with sound strategic and financial rationale Materially strengthening our Top 3 position in banking 1 (having 17% market share in loans), in close reach of #2, reinforcing our position as #1 financial group in Bulgaria Attractive investment opportunity with 2 + manageable risks
Slide 13: Bulgarian Banking Landscape Overview
Bulgarian Banking Landscape Overview Materially Strengthened Top 3 Position Pro Forma, in Close Reach of #2 Total Gross Total Book FY 2020 (€bn)(1) M/S% M/S% M/S% RoTE CET1% L/D(2) C/I(3) Assets Loans Deposits Equity Competitive Dynamics 1 NLB 12.6 19.8% 6.3 16.1% 9.6 17.7% 1.7 6% 28% 66% 39% ● Raif
Slide 14: Investment Case & Challenges for KBC
Investment Case & Challenges for KBC Attractive Investment Opportunity with Manageable Risks Key Opportunities Attractive Standalone Franchise with Proven Track Record Successful universal banking franchise with holistic product offering incl. leasing, asset management and insurance ancillarie
Slide 15: Significant synergy potential driving value creation in banking
Significant synergy potential driving value creation in banking Important efficiency gains, leveraging on the combined UBB and Raiffeisenbank BG entity & KBC expertise Key synergy sources include: Optimisation of branch network Streamlining HQ functions Optimisation of real estate and proc
Slide 16: Agenda
Agenda 1 Transaction overview 2 Strategic rationale 3 Financial impact 4 Summary 16
Slide 17: Acquisition to have limited impact on KBC Group CET1
Acquisition to have limited impact on KBC Group CET1 Pro-forma fully-loaded CET1 ratio at KBC Group (Danish compromise) Comments ~ (100bps) Consideration will be fully paid in cash from available funds 16.4* Limited impact of the transaction on KBC Group CET1 capital 15.4% 10.60% ratio of around
Slide 18: Overview of combined financials in Bulgaria
Overview of combined financials in Bulgaria + Total assets 6.5 5.0 11.5 Balance sheet Gross loans 3.4 3.3 6.7 (bn EUR)(2020A) Deposits 5.5 4.1 9.6 Shareholder equity 0.8 0.5 1.3 Net interest income 132 114 246 Operating income 197 169 365 Profit & Loss Operating expenses (98) (94) (193) (m EUR)(2020
Slide 19: Agenda
Agenda 1 Transaction overview 2 Strategic rationale 3 Financial impact 4 Summary 19
Slide 20: Key takeaways
Key takeaways Materially strengthening our #3 position in the Bulgarian banking market. The proforma combined entity would reach 18.2% market share by assets (basically the same as the #2 (OTP) and would become the #2 player in loans (17.0% market share), whilst reinforcing our position as #1 fina
Slide 21: Contact information
Contact information Investor Relations Office E-mail: IR4U@kbc.com visit www.kbc.com for the latest update 21