Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Merger or Acquisition (June 2011)
22 slides from Malayan Banking Bhd's merger presentation, Jun 13, 2011
Slide 1: The Merger of Maybank and Kim Eng
The Merger of Maybank and Kim Eng A Catalyst for Maybank’s ASEAN Investment Banking Build-out 13 June 2011 Slide 0
Slide 2: Table of Contents
Table of Contents Transaction Overview About Kim Eng Outcome of the Combination Pro Forma Financial Impact Conclusion Slide 1
Slide 3: Maybank Expands Regional Investment Banking Presence
Transaction Overview Maybank Expands Regional Investment Banking Presence • On 6 Jan 2011, Mayban IB Holdings Sdn. Bhd. (formerly known as Aseam Credit Sdn. Bhd.) (“MIBH”) entered into separate conditional Sale and Purchase Agreements (“SPAs”) with Ronald Ooi and Yuanta Securities Asia Financial Ser
Slide 4: Rationale of the Kim Eng Deal
Transaction Overview Rationale of the Kim Eng Deal Kim Eng fits squarely with Maybank’s strategic vision to extend Maybank’s investment banking and stockbroking presence in ASEAN Kim Eng is a truly unique asset in ASEAN in terms of size, pan-regional platform, market leadership, impressive earni
Slide 5: Salient Terms of the Kim Eng Deal
Transaction Overview Salient Terms of the Kim Eng Deal S$3.10 in cash per Kim Eng share – Premium of 15% to last closing price (5 January 2011) and 28% to 1-month VWAP Offer Price Aggregate transaction consideration of S$1,789 mm (RM4,256 mm) Funded by internal and/or external funds Price to
Slide 6: Indicative Timeline
Transaction Overview Indicative Timeline We are here (13 June 2011) 6 Jan 5 May 10 May 23 May 24 May 20 June 18 July 22 July 27 July 2011 2011 2011 2011 2011 2011 2011 2011 2011 ~4 Months Obtain regulatory approvals Execution and Announcement of Closing of Closing of Thai Announcement of Singapore M
Slide 7: Table of Contents
Table of Contents Transaction Overview About Kim Eng Outcome of the Combination Pro Forma Financial Impact Conclusion Slide 6
Slide 8: ASEAN's Leading Securities Firm
About Kim Eng ASEAN’s Leading Securities Firm Track Record of Over 35 Years Strategic alliance with MUFJ Philippines Strategic alliance with Malaysia Yuanta. Acquired KE Thailand listed and Est. KE Capital Partners, a JV with KE Securities London (Research Yuanta Thailand and included in MSCI Index
Slide 9: Strong Performance with Diversified Source of Revenue
About Kim Eng Strong Performance with Diversified Source of Revenue Resilient Operating Income Sustained Net Income and Net Margin SGD mm SGD mm 700 Net Income Net Margin 580 200 35% 40% 600 30% 150 26% 24% 30% 500 412 149 20% 19% 351 366 400 342 100 20% 271 94 102 300 89 50 72 77 10% 200 100 0 0% -
Slide 10: Quality and Depth of Top Management
About Kim Eng Quality and Depth of Top Management Ronald Ooi, Chairman and CEO 30+ years of industry experience Director of Kim Eng since 1979 SGX committee member 1986 - 1999 Eunice Ho Lau Wai Kwok Judd Clark Kinne Chief Financial Officer Executive Director, Global Institutional Sales A
Slide 11: Table of Contents
Table of Contents Transaction Overview About Kim Eng Outcome of the Combination Pro Forma Financial Impact Conclusion Slide 10
Slide 12: The Merger is a Leap towards Achieving Maybank's Aspirations
Outcome of the Combination The Merger is a Leap towards Achieving Maybank’s Aspirations… By 2015 Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services from the Heart of ASEAN Strategic Objectives 1. Undisputed #1 Retail Financial Services provider in Malaysi
Slide 13: Acting as a Catalyst for Maybank's Regional Investment Banking
Outcome of the Combination …Acting as a Catalyst for Maybank’s Regional Investment Banking Kim Eng fits squarely with ... as it fills critical gaps in Investment Banking Maybank's strategic vision ... and Stockbroking Commercial/ Geography1 Islamic Investment Stock banking banking broking Maybank's
Slide 14: An Expanded Stock Broking and Investment Banking Presence in the Region
Outcome of the Combination An Expanded Stock Broking and Investment Banking Presence in the Region Maybank ASEAN Stock Broking Champion Commercial Banking Brokerage / Investment Banking Ranking M. Share Ranking M. Share Retail Banking Kim Eng also maintains distribution presence in #4 7% #1 13% Othe
Slide 15: Harnessing Synergies
Outcome of the Combination Harnessing Synergies Improved Investment Banking Cross-selling and Underwriting Capability Providing mutual product offerings Leveraging Maybank‘s strong Tapping into Kim Eng’s client base balance sheet and client of 200,000 relationships Kim Eng’s Business and Other
Slide 16: Table of Contents
Table of Contents Transaction Overview About Kim Eng Outcome of the Combination Pro Forma Financial Impact Conclusion Slide 15
Slide 17: PBT Contribution from Overseas Increases from 21% to 24%
Pro Forma Financial Impact PBT Contribution from Overseas Increases from 21% to 24% Maybank – FY10 (ended Jun ’10) Kim Eng – FY10 (ended Dec ’10) Pro Forma Combination +7.6% RM12,872 mm RM980 mm RM13,852 mm Others Others Others Indonesia 4% Indonesia 5% 4% Indonesia 14% Revenue 4% 15% Hong Kong Hong
Slide 18: Investment Banking Becomes a Larger Business Driver
Pro Forma Financial Impact Investment Banking Becomes a Larger Business Driver with 7% Contribution to PBT Maybank – FY10 (ended Jun ’10) Kim Eng – FY10 (ended Dec ’10) Pro Forma Combination +7.6% RM12,872 mm RM980 mm RM13,852 mm Int'l Banking Consumer Int'l Banking Consumer 26% Banking 28% Banking
Slide 19: Group Capital Ratios Remain Strong Post Acquisition
Pro Forma Financial Impact Group Capital Ratios Remain Strong Post Acquisition Maybank Group – Risk Weighted Capital Ratios Acquisition to be funded by internally-generated 14.74% 14.17% 14.12% 13.00% funds and/or external funds Group pro forma capital ratios remain healthy, and Min requirement
Slide 20: Table of Contents
Table of Contents Transaction Overview About Kim Eng Outcome of the Combination Pro Forma Financial Impact Conclusion Slide 19
Slide 21: Conclusion: Exciting Times Ahead
Conclusion Exciting Times Ahead Extends Investment Banking scope and reach in ASEAN, in line with our regional aspirations Complements business and geographic footprint Provides strong synergy potential through a complete banking platform Provides attractive opportunity to gain access to high growth
Slide 22: Disclaimer
Disclaimer Cautionary Note on Forward-Looking Statements All statements other than statements of historical facts included in this presentation are or may be forward-looking statements. Forward-looking statements include but are not limited to those using words such as “expect”, “anticipate”, “belie
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