Westpac Banking Corporation · ASX:WBC
Westpac Banking — Merger or Acquisition (October 2013)
7 slides from Westpac Banking's merger presentation, Oct 11, 2013
Slide 1: Acquisition of Lloyds Banking Group's Australian Businesses
For personal use only ACQUISITION OF LLOYDS BANKING GROUP’S AUSTRALIAN BUSINESSES 11 OCTOBER 2013 Gail Kelly Chief Executive Officer Philip Coffey Chief Financial Officer Westpac Banking Corporation ABN 33 007 457 141.
Slide 2: A value creating transaction
A value creating transaction For personal use only • Westpac has agreed to acquire selected assets of Lloyds Banking Group’s Australian businesses (Lloyds) • Asset base1 of $8.4bn • Meets Westpac’s strict M&A criteria – Portfolio fits well within Westpac, building our capability and reach in key tar
Slide 3: Summary of assets to be acquired
Summary of assets1 to be acquired For personal use only BOS International Capital Finance Australia Limited (CFAL) Australia Limited (BOSI) Corporate loan Equipment finance Motor vehicle finance portfolio • $2.9bn in lease receivables • $3.9bn in assets • $1.6bn in corporate loans. – $1.9bn SME2 – $
Slide 4: Good strategic fit within the Westpac Group
Good strategic fit within the Westpac Group For personal use only • Assets clearly aligned to Westpac target segments of SME and Corporate • Grows customer base and enhances ability to deepen existing relationships through expanded operating lease capability • Asset quality considered to be in line
Slide 5: Financial implications
Financial implications For personal use only Consideration • Acquisition price $1.45bn, net tangible assets $1.19bn, and premium of $0.26bn • Total assets $8.4bn, risk weighted assets $9.1bn • Additional cash consideration for derivatives mark to market Financial • Price to NTA 1.22x metrics • Is ex
Slide 6: Valuation considerations
Valuation considerations For personal use only Valuation assumptions Valuation models/outcomes • Cost $1.45bn, transaction costs $15m • Assesses impact on • Integration costs $130m Westpac EPS and period Earnings • Cost of capital and discount rate of 11%, of dilution per share franking credits valu
Slide 7: Disclaimer
Disclaimer For personal use only The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it
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