Mystate Limited · ASX:MYS
Mystate — Merger or Acquisition (August 2011)
17 slides from Mystate's merger presentation, Aug 31, 2011
Slide 1: Growth through scale and diversity: Proposed merger between MyState and The Rock
MyState and The Rock: Merger presentation Growth through scale and diversity For personal use only Growth through scale and diversity Proposed P d merger between b t MyState and The Rock 31 August 2011 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION
Slide 2: A compelling merger
MyState and The Rock: Merger presentation Growth through scale and diversity A compelling lli merger For personal use only Key information post merger A natural partnership Branch network 21 branches and 20 mini branches – Shared long term vision and growth strategies – Aligned culture and values
Slide 3: Key terms and conditions
MyState and The Rock: Merger presentation Growth through scale and diversity K terms Key t and d conditions diti For personal use only Offer summary Merger of MyState and The Rock Exchange 7.75 MyState shares per 10 shares in The – 7.75 MyState shares per 10 shares in The Rock ratio Rock – Offer v
Slide 4: Benefits for The Rock's stakeholders
MyState and The Rock: Merger presentation Growth through scale and diversity B Benefits fit for f Th The Rock’s R k’ stakeholders t k h ld For personal use only A broader range of products and services Benefits for customers A more efficient business Ongoing investment in The Rock’s branch net
Slide 5: Complementary businesses – improved strength through diversification
MyState and The Rock: Merger presentation Growth through scale and diversity C Complementary l t b businesses i – improved i d strength t th th through h diversification di ifi ti For personal use only The Rock MyState Combined Queensland l d Geographic Tasmania spread Other States* R t
Slide 6: Local identities retained – a platform for further growth
MyState and The Rock: Merger presentation Growth through scale and diversity L l id Local identities titi retained t i d – a platform l tf f further for f th growth th For personal use only The Rock, MyState Financial and Tasmanian Perpetual Trustees brands and identities to be retained The Rock
Slide 7: A substantial increase in overall scale in banking
MyState and The Rock: Merger presentation Growth through scale and diversity A substantial b t ti l iincrease iin overallll scale l iin b banking ki For personal use only Total loans as at June 20101 Retail deposits as at June 20101 $8,000m $6,000m $7,000m $5,000m $6,000m $4 000m $4,000m $5,000m $4,
Slide 8: Detailed integration plan
MyState and The Rock: Merger presentation Growth through scale and diversity D t il d iintegration Detailed t ti plan l For personal use only Integration guided by a clear set of principles – “Clearly distinct local identities” will be maintained – We will make “the best of our brands”, making the
Slide 9: Material synergy benefits are anticipated
MyState and The Rock: Merger presentation Growth through scale and diversity M t i l synergy b Material benefits fit are anticipated ti i t d For personal use only Synergy overview Primary synergy drivers $7.5m to $8.5m p.a. net pre‐tax by year 32 – Expansion of The Rock’s product offering using M
Slide 10: Material improvement in combined cost/income ratio
MyState and The Rock: Merger presentation Growth through scale and diversity M t i l iimprovementt in Material i combined bi d cost/income t/i ratio ti For personal use only Cost/income ratio1 80% MyState Limited ‐ standalone Merged Entity FY11 75% 70% 65% 60% 55% FY 09 FY 10 FY 11 Combined Pro form
Slide 11: Balance sheet strength and enhanced funding mix
MyState and The Rock: Merger presentation Growth through scale and diversity B l Balance sheet h t strength t th and d enhanced h d ffunding di mix i For personal use only Sound balance sheet maintained1 – Pro forma tier 1 capital ratio as at 30 June 2011 of 14.4%, after allowing for transaction c
Slide 12: Offer premium for The Rock's shareholders
MyState and The Rock: Merger presentation Growth through scale and diversity Off premium Offer i ffor Th The Rock’s R k’ shareholders h h ld For personal use only Offer premium1 +40.2% +30.2% +21.3% The Rock The Rock The Rock 1 month Value of 3 month Value of 6 month Value of VWAP prior MyState VWAP
Slide 13: Benefits for current MyState shareholders – pro forma 2011 figures
MyState and The Rock: Merger presentation Growth through scale and diversity B Benefits fit for f currentt MyState M St t shareholders h h ld – pro forma f 2011 figures fi For personal use only Substantial upside potential for MyState shareholders including a share in synergies of 14% of pro forma e
Slide 14: MyState and The Rock are targeting completion prior to 31 December 2011
MyState and The Rock: Merger presentation Growth through scale and diversity M St t and MyState d The Th Rock R k are targeting t ti completion l ti prior i tot 31 D December b 2011 For personal use only Transaction timeline 31 Aug 2011 Merger of MyState and The Rock announced Prepare documentation
Slide 15: Enhanced long term prospects
MyState and The Rock: Merger presentation Growth through scale and diversity E h Enhanced d long l t term prospects t For personal use only Expected business improvements Beneficial for all stakeholders Cost efficiencies Scale Growth potential Shareholders + Customer base Customers Geographi
Slide 16: The merger has the unanimous support of both Boards
MyState and The Rock: Merger presentation Growth through scale and diversity Th merger has The h the th unanimous i supportt off b both th B Boards d For personal use only The Rock Board’s statement MyState Board’s statement The Rock’s Board unanimously The MyState Board unanimously supports the pro
Slide 17: Important notice and disclaimer
MyState and The Rock: Merger presentation Growth through scale and diversity I Important t t notice ti and d di disclaimer l i For personal use only This Thi presentation i has h been b prepared d by b The Th Rock R kB Building ildi SSociety i Li Limited i d (“Th (“The R Rock”) k”) and d MyState M