Barclays Plc · LSE:BARC
Barclays — Merger or Acquisition (September 2007)
40 slides from Barclays's merger presentation, Sep 4, 2007
Slide 1: Investor Presentation, 30th August 2007
Filed by Barclays PLC Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14d-2 under the Securities Exchange Act of 1934 Subject Companies: Barclays PLC (Commission File No. 1-09246) Barclays Bank PLC (Commission File No. 1-10257) ABN AMRO Holding N.V. (Commissio
Slide 2: Investment case summary
Investment Barclays 1 Valuation AMRO 3 4 5 6 7 8 9 10 11 12 13 2 ABN Track World Positioned Fast Scale Substantial Strong Barclays Technical Trading Upside Underpinned growing AMRO in record class franchises and UK potential management at attractions to share ABN new an investment and of internation
Slide 3: Track record of delivering higher profit growth
1 Track Delivering Higher Profit 20% Rising 45% UK CIR: 37% Barclays PBT Economic 2003-06 (a) 3 FY Retail H1 50% 60% PBT FY04 diversification 2000 Non growth record 2007 32% Wealth Capital CAGR Non profit Banking on 65% NII – p.a. promises greater H1 of UK (b) 10-13% H107 and delivery –2007 EP futur
Slide 4: Barclays record earnings and dividend growth
1 Track Barclays 2004 11.5 41.4 10.5 36.3 9.2 29.1 31.0 71.9 26.6 24.0 54.4 51.0 Economic 1,609 1,385 1,004 2,704 1,752 1,568 EPS(P) 4 – 06 2005 DPS(S) DPS(P) record earnings track EPS profit 2006record of CAGR: H1 (£m) delivery and 2005 of dividend 19% strong H1 on2004 growth 2006 earnings growth –
Slide 5: Positioned to capture globalisation trend
2 Positioned Globalisation A Trend Financial Retail Developing Barclays Following Capturing Leveraging 370 Universal 1997 Indexed: Source: 5 handful 320 1998 of and Datastream 270 globalisation 1997 believes institutions banks Banks of new commercial existing 1999 scale markets to 220 universal and
Slide 6: Barclays transformed into diversified global bank
2 Positioned Barclays Over International Average 50% 80% 20% £4.1bn £3.5bn Basis £7.1bn £3.8bn 30% 4% 6% 2003 UK (1) 6 Business 16% 2% 4% PBT banking the 2006 of£4.1bn 10% 6% 35% preparation 2006 9% last universal Non-UK (1) 39% Barclaycard not to 20% 51% growth 6H1 H1 years take directly 17% 2007 3
Slide 7: World class investment banking and management opportunity
3 World Provides Estimated 7-10% 340 870 250 280 Investment Asset Wealth 34 24 14 ~3% Barclays 7 66~6% 76 86 Management, expected Management, class significant ~1% Global Asset Banking banking, investment annual Wealth Revenue AuM, opportunity and revenues AuM, growth Investment Total banking % Pool
Slide 8: BarCap and Investment Management growth
3 World 25% 15% BarCap 1% Investment 23% 39% 11% 7% -4% Barclays Street (1) 8 Note: 6% 5% -8% 10% 19% 21% Bernstein 6% GS class growth BlackrockState Investment 9% Banking Management 5% LBinvestment 4% SG hasDB 4% PBT been management MLMellon PBT banking CAGR industry CSCAGR BNP UBS (2000-2006) and
Slide 9: Barclays Capital leading performance
3 World Barclays Leading (£m) 31% CAGR H1 2 1,431 1,142 4,394 3,412 930 2,582 730 2,087 6,225 2002 1,660 4,143 1,246 3,367 Performance Global Rankings: US Awards EUROMONEY Western Best July Sterling Year Euro the December Inflation January ,216 Year Growth IG 2007 Debt at Commodities 32% for Net Bon
Slide 10: Barclays Global Investors
3 World Barclays A (£m) 32% CAGR H1 714 1,665 540 1,318 336 893 191 672 107 547 943 7% 12% 364 2002 #1 Largest iShares Active Index PBT 10global League Growth 845 388 and by 61% Net 2003 29% 59% 37% 23% (02-06) 34% 18% Global European product class leader AuM Global Revenue Table 2004 (06investment
Slide 11: Barclays Wealth building growth
3 World Barclays Building (£m) H1 CAGR 11% 10% 2004 173 633 129 577 245 1,158 164 1,032 90 943 INVESTOR PAM Digital Wealth Private UK’s Best INVESTORS Stockbroker Broker 11 Growth Stockbroker Online 65% 34% Net 2005 AWARDS Largest of Outlook Asset (04-06) Manager Investor class Wealth aRevenue the p
Slide 12: Fast growing international retail and commercial banking
4RCB Barclays South 8.7m 87,000 812 RoI PBT Spain GRCB Portugal Italy France Established Africa India Strongly Barclaycard Absa Rand 12,000 6,429 32% 7,035 11,417 I2005 0 £ 250 142 19% 195 H1 International 1,838 2004 830 12Fast m 2005 branches 17% 200 119 +17% 2006 2005 retail –PBT is m4,879 1,613 -
Slide 13: UK Retail Banking scale and earnings
5,546 Earnings High Strong 11.4m banking 26% 15% Scope market mortgages long H1:07) general Further 2 0 1,000 2,000 3,000 £m 1,363 45% 50% 55% 48% PBT Barclays 40% 30% 2005 UK 70% FY04 56% 58% 61% 65% 13Scale Banking Retail term (£m) business current 30% 26% 65% RoE 2006 2,236 50% FY05 for current m
Slide 14: Substantial Barclays investment by CDB and Temasek
6 Substantial Barclays Temasek Substantial Firm Conditional Clawed Total Largest 10 £bn 3.0 4.9 7.9 9.0 1.5 CDB/Temasek Temasek-Stan Jove-BBVA AlSanea-HSBC Alwaleed-Citi Istithmar-Stan Dubai-DB Source: Dubai-HSBC 14 50.9 2.2 CDB 0@ new 2.0 0.5 minority News back £7.20 and Temasek equity 0.5 new @by
Slide 15: CDB strategic partnership
6 Lord BARCLAYS Barclays This “This spread and Lord China CDB’s Strategic CDB investment * 15Substantial CDB ground George, China is commitment agreement Development across George mandate controlled has partnership will Exclusive Development breaking created new all former do sits issectors isthat.”
Slide 16: Identified opportunities with CDB
6 Africa BARCLAYS Identified 1 opportunities BGI Strategic 2 product 3 CDB This 4 China Trade Barclays 16Asset Substantial Commodities Joint ishas will flows isthe business management consumption opportunities the one has is now partnership offer afour world’s prime also the between dominant of aide
Slide 17: Temasek's investment in Barclays
6 Substantial BARCLAYS Temasek’s US$41bn Investments Commitment Temasek 18% 27% 33y Source: 17 since 18%Temasek News isof has investment inception strong ainclude financial acommercial new toreports. specialisation Barclays investment investors 3Standard track years institution Estimated is investme
Slide 18: Combination creates enlarged retail and commercial banking presence
7.5 BARCLAYS Combination Creation Enhances Delivers Brings Able share 2.5 market Global 0 % Uni- BNP Barclays 18ABNSant- RBS to 2 strong 1Retail AMRO 1.5 deploy complementary of ABN growth JPM Sumi- a top with and presence AMRO economies transaction BofA 4Wells in Commercial ABN player global HSBC i
Slide 19: ABN AMRO retail and commercial banking
7 ABN BARCLAYS Global UK Position Top Branches 19 Netherlands 3 3rd Retail AMRO A1,810 largest leading and transaction 643 Italy retail Commercial UK 1,045 Iberia Top Northern 623 fully player Retail Banking: consistent Region in 8th Customers retail largest Creating withbank bank growth 14m a pan-E
Slide 20: ABN AMRO developing markets
7 ABN BARCLAYS Global Developing 2006 Other Income Nominal Key South 17% China: India: 10.3% Pakistan: Taiwan: Assets: Largest 28 812 8.7m (1) (2) commercial (4) 20 branches Based Source: In branches Attributes 22%(3) Group PBT customers local developing Africa 10.3% Indonesia: 12.4% Retail AMRO €48
Slide 21: Ability to expand ABN AMRO retail and commercial banking
7 Ability BARCLAYS Global Commercial Mass Credit -Trade •Mid-market 21 ABN EU Merge Offer Expand Enlarged Improved Barclays Significant Deliver Exploit Cross-sell ABNand Affluent Finance Cards AMRO Retail leading AMRO Premier to the Asia; complete distribution is offers customer capture cost wealth
Slide 22: Combination crystallises investment banking potential
7 Crystallises BARCLAYS Investment •Combination 2006 19.2 24.9 UBS 9.2 6.1 Barclays 22 Creation Considerably Extensively Leverages Benefits ABN17.2 JPM pro AMRO ABN forma 16.5 from ML ofBanking: ABN awith significant broadens Total AMRO 15.1 top enhances transaction ABN Investment AMRO’s ABN 515.3 (
Slide 23: Attractive investment banking product capabilities
7 Attractive BARCLAYS Investment Extended Barclays Asset 03-06 Credit •FX Private (1) 23Solid Leading Strong Leverage Combined ABN Barclays 24%Class CAGR(1) 19% ECM AMRO Equity structured energy sales •Capital product Metals Extensive Barclays Banking: Asian •ABN business Investor capabilities Speci
Slide 24: Broader investment banking geography
7 Banking BARCLAYS Investment Broader Barclays Geography 03-06 Continental Europe 20%+ •Asia (1) 24Number Significant Extensive Established Strong ABN Barclays Pacific CAGR(1) AMRO Nordic geographical corporate/mid-market Capital one licenses Income Banking: corporate/mid-market •30%+ Investor mid-m
Slide 25: Significant asset management opportunity
7 ABN BARCLAYS Investment Significant •Combined – Barclays 1,933 157 280 32% ABN PBT 712 828 529 594 108 100 2002 12% 25An Considerable ABN Target Well Broad 496 151 ‘02 extensive (€m) 2003 AMRO ‘02 diversified AMRO AMRO –range ABN 29% Global –Revenue ‘06 business 2004 opportunity Management ‘06 Ass
Slide 26: Very attractive wealth management combination
7 Very BARCLAYS Investment The Funds 200 Merrill UBS Credit Wachovia MS Combined Deutsche HSBC Goldman ABN – Leading •Barclays Source: 26 No. Complementary Combined Focus Leading ABN Access Creating JP 400 combined Citi AMRO 8under clear SM AMRO globally Lon Bear 600 European ABN 183 to compelling S
Slide 27: ABN AMRO underperforming franchises and cost:income
8 ABN •BARCLAYS 3.0 2.5 € 1.0 Cost:income 80% 81% 90% 73% 61% 70% 2004 50% 60% 58% ABN Source: 27strong world-class underperforming Extensive Strong 1.52.43 2.0 0.5 75% 72% 61% 1.17 2005 AMRO AMRO 0.0 ABN market 2.50 franchises 59% 2006 distribution ratio cash 2.33 AMRO franchises has EPS Barclays d
Slide 28: The transaction: estimated synergies
8 Transaction BARCLAYS The Transaction Estimated 150 850 1,800 2,800 GRCB As (1) (2) •Note: 28 Total Conservative detailed joint external GRCB No Synergies Strong % Profit Fully 200 150 transaction incremental All of 1,650 working sign Cost Revenue Investment 3,500 Cost synergies franchises phased b
Slide 29: The transaction: strong value creation
8 arclays BARCLAYS The Transaction 160,000 3,356(15,000) 100,000 57,593 120,000 41% 80,000 creation 40,000 20,000 B 0 59% 750p) (a) (b) (c)La (d) (e) would (f) 29Strong Value Barclays Includes ABN Equivalent transaction €6.7bn Salle (a) transfer 138,866 72,848 BARC for 26,250 Estimated AMRO franchis
Slide 30: Barclays-ABN AMRO management and execution
9 Barclays BARCLAYS Barclays Barclays-ABN John President Piero CEO Paul Group Execution: Organic Inorganic 30 Idzik Varley Continental Overmars Chief growth: management Frits delivery: management Established Chief Operating Seegers AMRO Barclays Europe Executive Absa team will Executive CEO Barclays
Slide 31: Further upside from CDB partnership and trade finance
1013 BARCLAYS Further ABN One The Strong 0 500 1,000 1,500 US$bn Imports 969 791 762 662 593 561 435 Source: 4 2003 31 year Upside enlarged of2004 AMRO’s AMRO CAGR: Chinese CDB’s upside WTO Exports potential 2005 group’s Cash has mandates 21-31% from cash trade 2006 one Management from CDB managemen
Slide 32: Strong technical demand for Barclays shares
1120 BARCLAYS Strong The Expected Significant Over Barclays FTSE Royal BP HSBC RBS 0 Source: 32 Technical Vodafone enlarged 40 Barclays 50 100 Dutch index 60 Datastream, million stock announced toindex 80 demand be share Shell demand Barclays GlaxoSmithKline 100 Anglo will the Barclays 120 sixth dem
Slide 33: Current valuation at historically low P/E
12 Morgan BARCLAYS Current Sanford NCB ABN S&P JP KBW HSBC Panmure West Restricted ML UBS DB Lehman CS Citigroup Average Price/earnings Target 850 801p 811p 7.5x 7.0x 8.0x 9.0x 10.0x 11.0x 2yr Jun-07 Dec-06 May-06 Nov-05 Apr-05 Oct-04 Mar-04 Aug-03 Barclays Source: 33 Pence Trading Feb forw Feb 800
Slide 34: Trading at discount to peers
12 Trading BARCLAYS EP 9.1x 7.4x 4.7% 5.7% 12.7% 16.0% 2007E 2008E Barclays Note: 34 S CSelected D P A/Peer currently ividend GR Eat an ‘05 median peers attractive yield - trades ‘07 include atvaluation aBBVA, materialBNP discount Paribas, to its Citigroup, peers despite HBOS, higher HSBC, growth JP
Slide 35: Underpinned by attractive dividend yield
13 Underpinned BARCLAYS Barclays Dividend 3.0% Aug-03 850 1yr pence Source: 35 forward 800 3.5% Datastream, Mar-04 750 share has yield, 4.0% dividend 700 over price % Oct-04 by 4.5% 650 2xdividend is 29 dividend yield 600 supported 5.0% Apr-05 August 550 Barclays 5.5% yield 500 cover Nov-05 2007 by6
Slide 36: 2007 Interim results Appendix
2007 Interim results Appendix BARCLAYS 36
Slide 37: Growing profit and returns
Growing BARCLAYS Profit Indexed: Dividend EpS H1 +63% +94% +109% 37 2003before H1 returns 2004 2003 tax H1 = 100 2005 H1 2006 H1 2007
Slide 38: Another strong half year
Another BARCLAYS Half £m Income Operating Impairment Profit Earnings Dividend Return Economic 38 £m% year before on 10,969 strong per change per ended equity expenses(6,269)(6,847) profit charges(1,057)(959) tax share share 11,902 first -1,385 3,673 26% June 36.3p 10.5p half 26% +9% 1,609 2006 4,101
Slide 39: Divisional profit before tax
Divisional BARCLAYS Profit £m -UK Barclaycard Barclays 39 UK£m Banking Retail Business before Wealth Capital Global performance Banking 326 tax 1,253 Banking Investors 129 -272 1,246 half 1,363 173 600 -17% year 1,660 653 +34% 651 +9% 364 IRCB ended 712 +33% +9% 388 +9% 512 June +7%452 2006 -12% 200
Slide 40: SEC Disclaimer
SEC Disclaimer BARCLAYS offer, United unlawful. In and Schedule intends INVESTORS BECOME Investors ABN Forward This condition results facts. forward-looking expected financial operations Additional December Any regard Barclays Persons should 40 connection Exchange forward-looking document Filings AM