Slide 1: TOWER Rights Issue - Investor Presentation
Insurance | Investments KiwiSaver 24 August 2009 Company Announcements Office Market Information Australian Stock Exchange Limited New Zealand Exchange Limited Exchange Centre ASB Bank Tower Level 6, 20 Bridge Street Level 9, 2 Hunter Street Sydney NSW 2000 Wellington TOWER Rights Issue - Investor P
Slide 2: TOWER Limited Equity Capital Raising
For personal use only TOWER Limited Equity Capital Raising Investor Presentation (August 2009)
Slide 3: Important Information and Disclaimer
For personal use only Important Information and Disclaimer This document has been prepared by TOWER Limited (Company) to provide the recipient (Recipient) with information and a preliminary understanding of the proposed rights issue of shares in the Company, and the Company’s business. Goldman Sac
Slide 4: Investment Highlights
For personal use only Investment Highlights 1 $81 million rights issue to provide support for TOWER’s future growth and enhance financial strength 2 TOWER is a leading provider of insurance and financial services in New Zealand and the Pacific Islands with a history dating back to 1869 3 Market is c
Slide 5: Rights Issue Overview
For personal use only Rights Issue Overview Size NZ$81.3m Entitlement ratio 5 for 16 Issue price per share NZ$1.34 New shares issued under 60,660,802* rights issue Fully underwritten by Goldman Sachs JBWere (NZ) Limited Underwriting TOWER’s largest shareholder is GPG with a 35% shareholding GPG has
Slide 6: Purpose of the Issue
For personal use only Purpose of the Issue Issue will provide support for TOWER’s future growth and enhance the Group’s financial strength Supports sustainable growth strategy Organic Business – Supports TOWER’s long term strategy for organic business growth Growth – Provides working capital for T
Slide 7: Business Overview
For personal use only Business Overview
Slide 8: Business Overview
For personal use only Business Overview TOWER is a leading provider of insurance and financial services, offering insurance and investment products in New Zealand and the Pacific Islands TOWER is listed on both the New Zealand and Australian Stock Exchanges and has more than 57,000 shareholders
Slide 9: Health & Life
For personal use only Health & Life TOWER’s Health & Life business Health & Life - Analysis of Profit* ($m) provides a range of Health & Life insurance products in both the individual and group New Zealand markets TOWER is the 2nd largest health 15.3 13.8 insurer in New Zealand 11.5 – Market sha
Slide 10: General Insurance
For personal use only General Insurance TOWER provides general insurance General Insurance - Analysis of Profit* ($m) in New Zealand and the Pacific Islands – TOWER has more than 400,000 96.1 99.7 insurance policies in New 93.2 Zealand and holds an 8.1% market share of personal lines** The prima
Slide 11: Investments
For personal use only Investments TOWER’s investment business Investments - Analysis of Profit* ($m) operates in wholesale and retail funds management and 2.3 2.3 superannuation – TOWER is one of the six default KiwiSaver scheme 1.4 providers, and has a 7.6% share of the market** TOWER Investmen
Slide 12: Financial Performance
For personal use only Financial Performance
Slide 13: TOWER Group Financial Highlights
For personal use only TOWER Group Financial Highlights Strong result reported for six months to 31 March 2009 Net profit (from continuing operations) $26.6m 32% Underlying profit $21.5m 5% Earnings per share 13.8cps 30% Return on equity (annualised) 17.7% 3% % changes are compared to Half Ye
Slide 14: Summary of Group Results
For personal use only Summary of Group Results* $m Mar 08 Sep 08 Mar 09 % Change Health & Life 15.3 11.5 13.8 (10)% General Insurance 7.7 7.1 9.4 22% Investments 2.3 1.4 2.3 - Finance & Corporate (4.9) (1.6) (4.0) 18% Expenses Underlying Profit After Tax 20.4 18.4 21.5 5% Discount Rate Effect (0.2)
Slide 15: Group Financial Position
For personal use only Group Financial Position TOWER continues to maintain a strong and conservative balance sheet – Currently have no bank debt, with $82 million of senior bonds (maturing April 2014)(1) – Equity raising will result in TOWER being strongly capitalised and with substantial liquidit
Slide 16: Outlook and Strategy
For personal use only Outlook and Strategy TOWER considers it is uniquely positioned amongst insurance and financial services providers operating in the New Zealand market Strong market position in each segment with brand focused on the local market Continued improvements in operating costs / ef
Slide 17: Offer Structure
For personal use only Offer Structure
Slide 18: Rights Issue Overview
For personal use only Rights Issue Overview Size NZ$81.3m Entitlement ratio 5 for 16 Issue price per share NZ$1.34 New shares issued under 60,660,802* rights issue Fully underwritten by Goldman Sachs JBWere (NZ) Limited Underwriting TOWER’s largest shareholder is GPG with a 35% shareholding GPG has
Slide 19: Equity Raising Timetable
For personal use only Equity Raising Timetable* Existing shares quoted ex-entitlements on ASX 27 August 2009 Rights trading starts on ASX 27 August 2009 Record date (7pm NZT) 2 September 2009 Existing shares quoted ex-entitlements on NZX 3 September 2009 Rights trading starts on NZX 3 September 2009
Slide 20: Rights Issue Structure
For personal use only Rights Issue Structure Rights Sale Facility – Eligible shareholders entitled to 200 or fewer rights and wishing to sell their entitlement (either in part or in full) may do so through the Rights Sale Facility provided by TOWER – Rights Sale Facility forms are required to be r