Slide 1: Suncorp Group Limited Capital Notes 2
For personal use only Suncorp Group Limited Capital Notes 2 ― 23 October 2017 CAPITAL NOTES 2
Slide 2: Important Notice
Important Notice — For personal use only This presentation has been prepared and authorised by Suncorp Group Limited (ABN 66 145 290 124) (“Suncorp”) in relation to the proposed offer by Suncorp of Suncorp Capital Notes 2 ("Capital Notes 2") (the “Offer”). The Offer is made pursuant to a prospectus
Slide 3: Agenda
For personal use only Agenda Section 1 ― Offer summary Section 2 About Suncorp Section 3 Key features of Capital Notes 2 Section 4 Offer process Appendix 1 Comparison between Capital Notes 2 and other types of investments
Slide 4: Offer summary
For personal use only Section 1 Offer summary ―
Slide 5: Offer summary
Offer summary — For personal use only Issuer – Suncorp Group Limited (Suncorp) Security – Fully paid, subordinated, perpetual, unsecured, convertible notes Offer size – $250 million with the ability to raise more or less Use of – Suncorp is issuing Capital Notes 2 to raise Eligible Additional Tier 1
Slide 6: About Suncorp
For personal use only Section 2 About Suncorp ―
Slide 7: Suncorp Group
Suncorp Group Top 20 ASX listed company — For personal use only Leading financial services brands in Australia and New Zealand $18 billion market capitalisation1 $97 billion in group assets2 13,400 employees in Australia and New Zealand2 Approximately 9 million customers End-to-end ownership of bran
Slide 8: Strategy
Strategy — For personal use only CAPITAL NOTES 2 8 8
Slide 9: Suncorp Marketplace
Suncorp Marketplace — For personal use only – Making the experience easy for customers – Connecting customers to the Suncorp Marketplace – Developing integrated solutions and customer journeys CAPITAL NOTES 2 9 9
Slide 10: Full year ended June 2017
Full year ended 30 June 2017 For personal use only FY17 FY16 Change — ($m) ($m) (%) Insurance (Australia) 723 558 29.6 Banking & Wealth 400 418 (4.3) ‒ Group top line growth of 3.6% New Zealand 82 183 (55.2) ‒ Function NPAT up 4.0% NPAT from functions 1,205 1,159 4.0 ‒ Cash earnings up 5.1% Other (6
Slide 11: Insurance (Australia)
Insurance (Australia) General — Insurance Gross General Insurance Life Insurance Written Premium For personal use only Total Gross Written Premium of $8.1 billion Total in-force premium of $806 million 4% Portfolios by product 7% 17% 32% 27% 48% 19% 28% 18% ■ Motor ■ CTP ■ Term & TPD ■ Income protec
Slide 12: Banking & Wealth
Banking & Wealth — Lending assets by portfolio Lending assets by geography For personal use only <1% Total lending assets of $55.3 billion 4% 8% 7% 10% 10% 53% 26% 81% ■ Housing ■ Agribusiness ■ Queensland ■ Western Australia ■ Commercial (SME) ■ Consumer ■ New South Wales ■ South Australia ■ Victor
Slide 13: New Zealand
New Zealand General — Insurance Gross Written Premium General Insurance Life Insurance For personal use only Total Gross Written Premium of NZ$1.4 billion Total in-force premium of NZ$245 million Portfolios by product 3% 3% 6% 24% 19% 40% 52% 33% 20% ■ Motor ■ Commercial ■ Term & TPD ■ Other ■ Home
Slide 14: Create a Better Today
Create a Better Today — For personal use only Business Improvement Program Marketplace Acceleration ($m) “Owner’s Mindset” “Faster and Sooner” $m Pre-Tax Post Tax Digitisation of customer experience Single digital customer experience 23 16 Sales and Service channel optimisation National roll-out of
Slide 15: Capital position as at June 2017
Capital position ($m) As at 30 June 2017 — SGL, Corp Total as at For personal use only GI Bank Life Total Services 30 Jun & Consol 2016 CET1 3,115 2,963 461 86 6,625 6,338 CET1 Target 2,593 2,809 335 35 5,772 5,552 Excess to CET1 Target (pre div) 522 154 126 51 853 786 Group Dividend (476) (440) Gro
Slide 16: Pro forma capital adequacy position
Pro forma capital adequacy position1 — For personal use only As at 30 June 2017 Pro forma Pro forma Suncorp Group Pro forma Suncorp $m adjustments for the adjustments for Total Group Total Offer2 CPS2 repayment3 CET1 Capital 6,625 (6) – 6,619 Additional Tier 1 Capital 1,335 250 (560) 1,025 Tier 2 Ca
Slide 17: Key features of Capital Notes 2
For personal use only Section 3 Key features of Capital Notes 2 ―
Slide 18: Key features: General
Capital Notes 2 key features — General For personal use only Issuer – Suncorp Group Limited (Suncorp) Security – Fully paid, subordinated, perpetual, unsecured, convertible notes Offer size – $250 million with the ability to raise more or less Issue Price – $100 per Capital Note 2 Ranking1 – In a wi
Slide 19: Key features: Distributions
Capital Notes 2 key features — Distributions For personal use only Distributions – Distributions are discretionary, non-cumulative, floating rate payments and are expected to be fully franked – Distributions are scheduled to be paid quarterly in arrears, subject to no Payment Condition existing – th
Slide 20: Summary of events that may affect Capital Notes 2
Capital Notes 2 key features For personal use only — Summary of events that may affect Capital Notes 2 Check where foot note 1 Note: For more information on the events that may affect Capital Notes 2 see Sections 1.2 and 2.2 – 2.5 of the Prospectus. CAPITAL NOTES 2 20 20
Slide 21: Optional Exchange and Conversion on Acquisition Event
Capital Notes 2 key features — For personal use only Optional Exchange and Conversion on Acquisition Event Exchange by – Suncorp may choose to Exchange all or some Capital Notes 2 on the Optional Exchange Date (being 17 June 2024) Suncorp1 – Suncorp may choose to Exchange all or some Capital Notes 2
Slide 22: Mandatory Conversion
Capital Notes 2 key features — Mandatory Conversion For personal use only – The Mandatory Conversion Date will be 17 June 2026, provided the Mandatory Conversion Conditions have been satisfied on that date. If any of the Mandatory Conversion Conditions are not satisfied on this date, then the Mandat
Slide 23: Non-Viability Trigger Event
Capital Notes 2 key features — Mandatory conversion For personal use only Non-Viability – A Non-Viability Trigger Event occurs where APRA provides a written determination to Suncorp that the conversion to Ordinary Shares or Trigger Event write off of Relevant Securities (including Capital Notes 2) i
Slide 24: Ranking in a winding-up
Capital Notes 2 key features — For personal use only Ranking of Capital Notes 2 in a winding-up1,2 Type Illustrative examples Higher Preferred and secured debt Liabilities preferred by law including employee ranking entitlements and secured creditors Unsubordinated and unsecured debt Bonds and notes
Slide 25: Key risks associated with an investment
Capital Notes 2 key features — Key risks associated with an investment in Capital Notes 2 For personal use only – Capital Notes 2 are not deposit or policy liabilities of Suncorp or any member of the Suncorp Group, are not protected accounts under the Banking Act or protected policies under the Insu
Slide 26: Offer process
For personal use only Section 4 Offer process ―
Slide 27: Offer structure
Offer structure — For personal use only Institutional Offer – Offer to certain institutional investors Broker Firm Offer – Offer to Australian resident retail and high net worth clients of Syndicate Brokers Reinvestment Offer – Offer to Eligible CPS2 Holders to reinvest the CPS2 in Capital Notes 2 –
Slide 28: Reinvestment Offer structure
Reinvestment Offer structure — For personal use only What is the – Under the Reinvestment Offer, Eligible CPS2 Holders may apply for some or all of the CPS2 registered in their name at 7:00pm (Sydney Reinvestment Offer? time) on 19 October 2017 to be repaid in the amount of $100 per CPS2, and to hav
Slide 29: Key dates
Key dates1 — Key dates for the Offer Date For personal use only Record date for determining Eligible Securityholders 19 October 2017 Lodgement of Prospectus with ASIC 23 October 2017 Bookbuild 30 October 2017 Announcement of the Margin 30 October 2017 Lodgement of the replacement Prospectus with ASI
Slide 30: Contact directory
Contact directory — For personal use only Issuer Suncorp Group Limited Simon Lewis Deputy Treasurer +61 7 3362 4037 Greg Volz Executive Manager, Capital Funding & Instruments +61 2 8121 0501 Andrew Dempster Head of Investor Relations (acting) +61 497 799 960 Arranger and Joint Lead Manager UBS Enric
Slide 31: Appendix - Comparison between Capital Notes 2 and other types of investments
Appendix 1 - Comparison between Capital Notes 2 and other types of investments1 — For personal use only Suncorp Standard term deposit SGL Subordinated Notes Suncorp Capital Notes 1 Suncorp Capital Notes 2 Suncorp Ordinary Shares CPS2 and CPS3 Issuer – Suncorp-Metway Limited – Suncorp Group Limited –