Abrdn European Logistics Income Plc · LSE:ASLI
Abrdn European Logistics Income — Aberdeen Asset Management — Merger or Acquisition (January 2009)
15 slides from Abrdn European Logistics Income's merger presentation, Jan 5, 2009
Slide 1: Acquisition of Asset Management Businesses from Credit Suisse
Acquisition of Asset Management Businesses from Credit Suisse 5 January 2009
Slide 2: Transformational deal for Aberdeen
Transformational deal for Aberdeen… • CHF75bn (£40bn) of AuM; adds depth and breadth to product offering Scale & financial • Positions Aberdeen among the leading independent asset managers globally strength • Greater scale in UK, Europe, Australia and Japan • Further reduces Aberdeen’s gearing • Fur
Slide 3: Transaction summary
Transaction summary • Acquisition of parts of Credit Suisse’s Global Credit Suisse Asset Management Investors business Global Investors • Traditional long-only global asset management • Consideration: Issuance of new Aberdeen shares to Credit Suisse Fixed Income - Stake of up to 24.97% of the enlarg
Slide 4: Overview of businesses acquired
Overview of businesses acquired Multi-Asset 30 Nov 08 CHFbn £bn 1% Money market Equities 40% Money market 29.9 16.0 20% Fixed income 29.5 15.8 Equities 15.1 8.1 Multi-Asset 0.4 0.2 Fixed income 39% 74.9 40.1 Mandates 33.4 17.9 Funds 41.5 22.2 74.9 40.1 3
Slide 5: AuM by management location at 30 Nov 08
AuM by management location at 30 Nov 08 CHFbn £bn London 51.7 27.7 Sydney 10.9 5.8 New York 7.7 4.1 Zurich 1.7 0.9 Singapore 1.6 0.9 Frankfurt 0.8 0.4 Tokyo 0.5 0.3 74.9 40.1 4
Slide 6: Funds by country of domicile at 30 Nov 08
Funds by country of domicile at 30 Nov 08 CHFbn £bn Luxembourg 29.1 15.6 Australia 4.2 2.2 UK 2.6 1.4 Japan 1.4 0.8 Switzerland 1.3 0.7 USA 1.2 0.6 Germany 1.0 0.5 Other 0.7 0.4 41.5 22.2 5
Slide 7: Equity AuM at 30 Nov 08
Equity AuM at 30 Nov 08 CHFbn £bn UK 5.0 2.7 Asia 3.8 2.0 Emerging markets 1.7 0.9 Europe 1.7 0.9 Specialist 1.7 0.9 Global 1.2 0.7 15.1 8.1 Mandates 4.2 2.3 Funds 10.9 5.8 15.1 8.1 6
Slide 8: Fixed income AuM at 30 Nov 08
Fixed income AuM at 30 Nov 08 CHFbn £bn Europe 10.4 5.6 Asia & Australasia 9.1 4.9 Global 4.6 2.4 US Core 1.6 0.9 UK 1.5 0.8 Convertibles 1.0 0.5 Emerging markets 0.6 0.3 Currency management 0.6 0.3 29.4 15.7 Mandates 15.8 8.4 Funds 13.6 7.3 29.4 15.7 7
Slide 9: Aberdeen – Pro forma enlarged AuM
Aberdeen – Pro forma enlarged AuM Aberdeen – Nov 08 Target businesses – Nov 08 Pro forma Multi-Asset Multi-Asset Property 5% 1% 17% Equities 27% Equities Multi-Asset Property 4% Equities 20% 24% 25% Money market 40% Money market 11% Fixed income Fixed income Fixed income 44% 39% 42% Total: £102.6bn
Slide 10: Transaction structure
Transaction structure • Purchase of operating subsidiaries in Australia, Hong Kong, Japan and Singapore and UK pooled pensions subsidiary • Business purchases in UK, Europe and US • First closing expected 30 April 2009 – All operating subsidiaries except Japan • Second closing expected 30 June 2009
Slide 11: Integration process
Integration process • Aberdeen has an excellent track record in integrating acquired businesses • Client retention will be top priority • Back office functions will be migrated to Aberdeen’s third party administrators in a controlled manner • Certain transitional services to be provided by Credit Su
Slide 12: Diversified client base & partnership with Credit Suisse
Diversified client base & partnership with Credit Suisse • Acquisition consistent with strategy to develop investment capability and distribution platforms where Group has a sustainable competitive edge • Provides Aberdeen with greater scale in certain markets where Group already has a presence • St
Slide 13: Creating value for shareholders and clients
Creating value for shareholders and clients • Leading global independent asset manager with enhanced scale and global presence • Access to the distribution network of Credit Suisse and Credit Suisse Private Bank, one of the world’s largest wealth managers • Application of Aberdeen’s efficient operat
Slide 14: Improved gearing position
Improved gearing position 30 Sep 08 Pro forma £m £m 7.2% Subordinated notes 2016 69.5 69.5 4.5% Convertible bonds 2010 2.9 2.9 Bank debt 146.5 146.5 218.9 218.9 Less: Cash & cash equivalents (82.2) (102.2) Net borrowings 136.7 116.7 Shareholders’ funds 545.4 795.6 7.9% Perpetual capital securities 1
Slide 15: Creating value for shareholders and clients
Creating value for shareholders and clients Enhanced global Scale & financial distribution & Significant cost strength broadened client efficiencies base Transformational transaction with significant value creation • Significant cost synergies – Marginal cost: Income ratio expected to be 35% - 40% •
Aberdeen Asset Management — Merger or Acquisition (January 2009) on 6ix