Barclays Plc · LSE:BARC
Barclays — Merger or Acquisition (July 2007)
16 slides from Barclays's merger presentation, Jul 23, 2007
Slide 1: Barclays PLC
@ BARCLAYS Barclays PLC 23rd July 2007
Slide 2: John Varley, Group Chief Executive
John Varley Group Chief Executive
Slide 3: Today's announcement
Today’s announcement • A groundbreaking partnership with China Development Bank • Barclays strategy delivering another strong performance in the first half of 2007 • New equity investment of €13.4bn by China Development Bank and Temasek • Improved terms of our offer to ABN AMRO shareholders
Slide 4: Strategic context
Strategic context • The global financial services industry is fragmented • The sources of growth in demand are clear • The universal banking model is advantaged • Barclays has achieved higher profit growth through diversification • We have sought further exposure to high growth markets
Slide 5: Profit before tax
Profit before tax Non UK UK Basis of preparation 2000 : UK GAAP basis 2006: IFRS basis £3.4bn 20% 80% 2000 £7.1bn 50% 50% 2006
Slide 6: Trading statement - strong first half
Trading statement - strong first half Half year ended – June £ m £ m % change Income 10,969 11,902 +9 % Operating expenses (6,269 ) (6,847 ) +9 % Impairment charges (1,057 ) (959 ) -9 % Profit before tax 3,673 4,101 +12 % Earnings per share 36.3p 41.4p +14 % Dividend per share 10.5p 11.5p +10 %
Slide 7: Partnership with China Development Bank
Partnership with China Development Bank • Leading Chinese state owned bank • Focused on infrastructure, petrochemicals, telecommunications and exports • CDB to distribute Barclays products • No similar collaboration with any other major bank • Substantial opportunities to work together
Slide 8: Background to Temasek investment
Background to Temasek investment • Investment company owned by the Government of Singapore • Outstanding investment record with financial services specialism • Significant commitment from discerning investor • Singapore: business hub of growing importance to Barclays
Slide 9: Investment by new shareholders
Investment by new shareholders €bn China Development Bank Temasek Total Firm @ £7.20 2.2 1.4 3.6 Conditional @ £7.40 7.6 2.2 9.8 Total new equity 9.8 3.6 13.4 Warrants @ £7.80 0.7 0.7 1.4 Clawback facility @ £7.40 1.8 0.7 2.5 Share buyback 3.6
Slide 10: Clawback placing
Clawback placing • Existing shareholders have ability to participate • Clawback available up to €2.5bn at £7.40 per share • Offer open until close Tuesday 24th July • Priority to core long term shareholders • Not offered in the US
Slide 11: Proforma ownership
Proforma ownership Temasek 2.4% China Development Bank 6.3% ABN AMRO shareholders 35% Clawback 2% Barclays existing shareholders 55% 57% including clawback Assuming 97.5% acceptances of revised offer and including the effect of the share buyback and excluding the impact of the exercise of the warran
Slide 12: Revised offer terms
Revised offer terms • Cash component €24.8bn / 37% €9.8bn from China Development Bank and Temasek €12bn from LaSalle sale €3bn from existing resources • Exchange ratio 2.13 new Barclays ordinary shares plus €13.15 per ABN AMRO ordinary share • Mix & Match facility
Slide 13: Attractive financial returns
Attractive financial returns C ASH EPS A CCRETION • 5% ACCRETIVE IN 2010* R O I •2010 TARGET : 13%* E CONOMIC P ROFIT •S IGNIFICANTLY POSITIVE BY 2010* •U NCHANGED AT €3.5 BN BY C OST €2.8 BN S YNERGIES N ET REVENUE €0.7 BN •I MPLEMENTATION COSTS €3.6 BN •C ORE EQUITY TIER 1 RATIO AT CLOSING OF 5% C
Slide 14: Robert E Diamond Jr, President
Robert E Diamond Jr President
Slide 15: Summary
Summary • Important partnership with China Development Bank • €13.4bn from major new investors • Improved offer terms with €24.8bn cash • ABN AMRO accelerates our strategy
Slide 16: Disclaimer
Disclaimer SEC Filings and this Filing: Important Information This document shall not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any securities, nor shall there be any sale or purchase of securities in any jurisdiction in which such offer, solicitation or sale