Suncorp Group Limited · ASX:SUN
Suncorp — Suncorp-Metway — Morgan Stanley Asia Pacific Summit 2006
22 slides from Suncorp's conference presentation, Nov 16, 2006
Slide 1: ASX announcement cover letter: Morgan Stanley Asia Pacific Summit presentation
Suncorp-Metway Ltd ABN 66 010 831 722 Corporate Secretary's Office Suncorp Centre 36 Wickham Terrace BRISBANE QLD 4000 GPO Box 1453, Brisbane QLD 4001 Direct Line: (07) 3835 6214 Direct Fax: (07) 3836 1190 16" November 2006 Company Announcements Office Australian Stock Exchange Level 4, Exchange Cen
Slide 2: Good morning
Good morning. I'm delighted to be here, and to have the opportunity to speak to you about Suncorp. Today, I’d like to give you a quick overview of who we are and explain how we differentiate ourselves in the financial services industry. | will also briefly cover our recent performance including our
Slide 3: National distribution footprint, diversified portfolio of businesses
National distribution footprint Diversified portfolio of businesses General, Insurance Sa%6: oo cm Contribution to profit before tax SSUtE ‘Foint ventires: Year to June 2006: $1,278, Suncorp is a top 25 Australian company, with operations in every state. We employ more than 8,800 people, and service
Slide 4: Full value chain ownership, customer-centric service and solutions
General Wealth Insurance Management Full value chain ownership _ : : Customer-centric sé rvice and solu ions © This differentiates us from our competitors who largely consist of mono-line General Insurers, or Banks, who have fairly substantial Wealth Management expertise, but only minor General Insu
Slide 5: We operate within a robust and stable macro environment
We operate within a robust and stable macro environment. The Australian economy continues to perform strongly having experienced 14 consecutive years of GDP growth. And the industries in which we operate are also stable. The Australian Banking sector is well structured and operates rationally. While
Slide 6: Group profit and dividend
sroup profit and __Undertying”* profit (Dividend Full-year, $m Ful-year, cents per share 4.042 ar Bas Full-Year 8 June alt Dec haif Fvos Fvee rvs Fo mes jo2l comparatives Have been updated to rellect AFRS, excluding adjusiments vitich are subject to trensitiona! arrangements leriying proit “ aperabn
Slide 7: Banking profit before tax, full-year
Profit before tax, full-year, 5m 506. » Focus on sensible pricing and cost / credit discipline » Diversified asset base underpinned by low risk home lending » Retail deposits growing strongly * Improved cost fo income » Sound asset quality FYO3"* FYO4** FYOS* FYO6 * Histoca! comparatives have heen u
Slide 8: Bank lending assets and banking portfolio composition
Bank lending assets (half-year, $b} Banking portfolio composition at 30 June 2006 Consumer 2% Commercial B% Home Lending 5A% Agri Comorate 7% 4HOS = 2HO4 {HOS «-2HOS «1HOB | 2HO6 5% “Includes securitised assets To a little more detail on lending and you can see from this high level summary on the le
Slide 9: General Insurance profit before tax, full-year
Profit before tax, full-year, 5m 660 » GWP well diversified by both class and geography + Increase in price-based competition * Continued focus on price and risk discipline + Targeting claims cost efficiencies across all classes + Material releases from tong tail classes reflect conservative provisi
Slide 10: Premium revenue growth by product
ium revenue growth by product — ; ; Total growth Gross written premium (full-year, $m) FYOS vs FYO5S 2,542 TFotai Motor Home Commercial cTP Other FY03" Fyo4”™ Fy05* FYO6 "Historical camparatives have besn updated lo reliect AIFRS, extiuding agjustments which ave sudjecl to ttarstional alvangerments
Slide 11: Wealth Management underlying profit, full-year
Underlying profit, full-year, $m + Strong sales momentum + Strong increase in value of new business + Funds under management of $13bn FYOS* FYO6. * Estimated unaudited comparatives, fully restated under AIFRS 40 And finally, Wealth Management has contributed profit before tax of $81 million for the
Slide 12: Outlook for 2007
Bank — Continue balancing price / volume mix — Cost control — No trigger for material loan losses. — Grow banking profit before tax and bad debts by approx. 10% Group General Insurance + Good growth momentum — Continued CTP premium reduction — Benefits from claims cost reduction program to continue
Slide 13: Three strongly performing businesses
*-Three strongly performing businesses .. 42 So to summarise.... Suncorp is a strong performing business with a number of key differentiators that set us apart from our competitors. Firstly, we have a unique model, with a full ownership position across banking, general insurance and wealth managemen
Slide 14: Promina merger
promina Let me now turn to our plan to create the leading customer-focussed financial services provider in Australia and New Zealand. As many of you would be aware on October 23, we announced that we had reached agreement with the Board of Promina around the terms of a Merger Implementation Agreemen
Slide 15: Essential criteria
3 essential criteria: + Shareholder value 44 As | have pointed out previously, at Suncorp we have always had a smail, highly skilled group at the centre of the organisation which closely monitors and researches all available opportunities. This evaluation occurs against 3 essential criteria: First,
Slide 16: Value creation: integration, organic growth, corporate development
Value @ Integration @ = Organic growth a 2: Corporate Development 2007 2066 By building on the foundations of this organic performance, we have also sought to realise the synergies available to us through having three businesses under the one roof. The obvious ones were around costs: and here we hav
Slide 17: Combined group: over eight million customers
+ Over eight million customers * Top 5 financial services provider in Australia and New Zealand 6 : : + Strong positions in each ; JUST CARL line of business reba + Net cost savings of $225m per annum Note: RACG, RAA RAC and AA are joint ventures with the respective motor clubs in Australia and New
Slide 18: Pro forma profit before tax
Profit before tex, 12 months te Julse 2008, $m $2.65n $2.0bn $t.6bn $t.0bn _ Ee som 4 Suncorp Promina Pro Forma HiEanking EJ Goneral insurance Weatth Management 2 Synergies 7 The Group will include: Approximately $39bn in total lending assets in our banking business Around $6bn in Gross Written Prem
Slide 19: Transaction timetable and regulatory approvals
. Regulatory approvals {ACCC, APRA etc} 7 Funding .. 18 So before wrapping up I'd like to provide you with a quick update on how the transaction is progressing. Teams from both Promina and Suncorp are working together to meet the timetable outlined on this slide. We have completed and submitted the
Slide 20: Leading customer focused financial services provider
SON CORD AE o, To be the leading customer focused financial services provider in Australia and New Zealand. 19 So, let me finish with a couple of important points. I've explained how this transaction is the result of extensive analysis, careful consideration and is absolutely aligned with Suncorp’s
Slide 21: Thank you, and I would be happy to answer any questions
Thank you, and | would be happy to answer any questions.
Slide 22: Important notice
Important notice - The purpose of this Presentation is to provide general information about the proposed merger of Promina Group Limited (Promina) by Suncorp-Metway Limited (Suncorp). it is not a recommendation that any person makes any investment decision in relation to Suncorp, Promina or the comb
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