Professional Documents
Culture Documents
Analyst Presentation
6 January 2011
Slide 0
TABLE OF CONTENTS
TRANSACTION OVERVIEW
CONCLUSION
Slide 1
TRANSACTION OVERVIEW
Maybank Expands Regional Investment Banking Presence
Overview Agreements with Ronald Ooi and Yuanta Securities Asia Financial Services Limited (“Yuanta”)to
acquire 44.6%1 of Kim Eng Holdings Limited (“Kim Eng”)
– S$3.10 per share
– Subject to certain conditions, including regulatory approvals from Bank Negara Malaysia
(“BNM”) and Monetary Authority of Singapore (“MAS”)
Upon completion, Maybank to conduct a Mandatory General Offer (“MGO”), in accordance with
Singapore regulations, for up to 100% of Kim Eng shares
Intend to take Kim Eng private
Total consideration of S$798mm in cash for initial 44.6%1 equity interest
Total consideration of S$1,789mm (RM4,256mm) in cash for 100% equity interest
Rationale In line with Maybank’s regional aspirations, accelerating its investment banking and equities
b ild
build-out i ASEAN
in
A truly unique asset in ASEAN - size, pan-regional platform, market leadership, impressive
earnings track record and diversified earnings base
9 Underlying markets experiencing rapid growth
9 Strong distribution capabilities, with market leadership in Singapore (#4), Thailand (#1),
Indonesia (#3) and the Philippines (#2), and a growing presence in Hong Kong, New York,
London and Vietnam
9 Complementary footprint to drive realization of synergies
9 Experienced and highly regarded management team to be retained
TRANSACTION OVERVIEW
CONCLUSION
Slide 3
KIM ENG
ASEAN’s Leading Securities Firm
1972 1988 1989 1990 1993 1998 2001 2002 2003 2007 2008 2010
Hong Kong Indonesia, Malaysia, US Acquired stock JV with Heritage Vietnam Signed agreement for 70%
broking firm Trust Group shareholding in Inter-
First stock broker listed
Nithipat Capital & Pacific Securities in
on SGX
Securities in Malaysia
Thailand
Brokerage
g Ranking
g1 Awards and Accolades
Country Ranking Market Share Branches Best Broker Award Best Broker Award
(2008, 2009, 2010) (2010)
Alpha Southeast Asia FinanceAsia
Thailand #1 13% 41
200 30%
450 27% 30%
26%
24%
351 366 14 9
343
15 0 20%
18 %
300 271 268 272 20%
10 2
94 89
10 0
72 73
15 0 50 10 %
50
0 0 0%
2005 2006 2007 2008 2009 9M 2009 9 M 2 0 10 2005 2006 2007 2008 2009 9M 2009 9 M 2 0 10
Stockbroking
84%
TRANSACTION OVERVIEW
CONCLUSION
Slide 6
A LEAP TOWARDS ACHIEVING OUR ASPIRATIONS
Plugging Critical Gaps within our Business Portfolio
By 2015
Critical Gaps
Slide 7
MAYBANK REGIONAL BANKING FRANCHISE
Completes the Gap in Investment Banking and Equities for ASEAN
Commercial / Islamic
Geography Investment Banking Stock Broking
Banking
Malaysia 3 3 3
Singapore 3
Indonesia 3
Philippines 3
Thailand 2
Vietnam 3
Wholesale banking capabilities across ASEAN
Enhanced Banking Extends Maybank’s distribution capabilities to key global financial markets
Platform including Hong Kong,
Kong London and New York
Commercial banking presence in Thailand remains the missing piece of the jigsaw
Entrance into – Kim Eng offers deep insight into the Thai market
Thailand Market
– Allows Maybank to develop brand recognition
Slide 8
STRATEGIC RATIONALE
1
Capitalise on Robust Strong trading volumes, fuelled by economic growth and liquidity in-flows
Capital Markets’ Potential for higher retail participation – driven by high savings rates and
Growth increasing investor sophistication
4
Experienced and well respected management team, with significant
Top-Notch
experience in building and growing businesses
Management Team
Core management team retained
Notes:
-Market ranking from stock exchanges and management
* Based on latest available data
Slide 9
1 CAPITALISE ON ROBUST CAPITAL MARKETS’ GROWTH
Asia Expected to Remain Robust
Attractive Economic Dynamics of Asian Markets¹ Trading Volume Growth of Key Asian Markets²
29%
35%
24%
30%
28%
19%
Strong 21%
16%
High Savings Volume
Rates (2009) Growth 15%
(2005-09)
6% 8% 9%
3% 3%
0%
69%
7%
6%
6% 55%
5%
5% 5%
Source: 1. Economic Intelligence Unit and Euromonitor. Savings rate represents proportion of household disposable income that is saved
2. World Federation of Exchanges members, Trading volume growth based on value. 3. YTD Nov 2010 vs YTD Nov 09
Slide 10
2 ASEAN’S DOMINANT BROKERAGE PLATFORM
Our Expanded Presence with Kim Eng
Maybank
ASEAN Stockbroking Champion
Commercial Banking
Brokerage / Investment Banking
Ranking M. Share Ranking M. Share Retail Banking
Kim Eng also maintains
distribution presence in #4 7% #1 13% Other Services
keyy financial markets
including Hong Kong, #4 8% #2 12% Kim Eng
London and New York Brokerage / Investment Banking
#3 5% #7 2%
Other Services3
Thailand Vietnam
Maybank: 2 + 951 branches
Kim Eng: 41 branches
Kim Eng: 5 branches
Cambodia Philippines
Maybank: 50 branches
Maybank: 9 branches
Kim Eng: 4 branches
Malaysia Brunei
Maybank: 386 branches
Maybank: 3 branches
g 6 branches
Kim Eng:
Singapore Indonesia
Maybank: 22 branches Maybank: 1+321branches2
Kim Eng: 3 branches Kim Eng: 6 branches
Source: Company websites, annual reports and presentations. Market ranking and market share from stock exchanges and management. Number of branches are as of latest available
1. 95 branches via 20% owned An Binh Bank
2. Via 97.5% owned PT Bank Internasional Indonesia Tbk
3. Kim Eng’s other services include asset management, hedge fund services, property & real estate development, insurance and trust & fiduciary services
Slide 11
3 SIGNIFICANT SYNERGY OPPORTUNITIES
Harnessing Synergies
Kim Eng’s
g Business and
Other
Footprint Expansion
Cash management support for cash Maybank’s strong capital base can
balances held in trust support Kim Eng’s growth initiatives
Support for foreign exchange flows (e.g. margin lending)
and hedging Access to Thailand and Thai market
Improved funding cost intelligence
Enhanced Infrastructure
Slide 12
4 TOP-NOTCH MANAGEMENT TEAM
Quality and Depth of Talent
Chief Financial Officer Executive Director, Global Institutional Sales Alternative Director to Lau Wai Kwok; Executive
30+ years of general management experience in 28+ years of industry experience Vice President, Business Development
the securities, gaming and manufacturing Joined Kim Eng in 1979 30 years of industry experience in Asia and the
industries US
Executive Vice President and Head, Credit Risk Senior Vice President Senior Vice President, Group Risk, Margin Finance
Management / Retail Operations 18 years of experience in stockbroking, 17 years of experience in managing securities
28 years of industry experience electronic commerce and public accounting financing
Executive Vice President, Office of the CEO Executive Vice President, IT & Operations / Chief Senior Vice President, KE Singapore; Advisor, KE
13+ years of experience in securities and legal Technology Officer Thailand; Executive Director – KE Vietnam
industry in the US and Singapore 20 years of experience in stockbroking industry 18+ years of industry experience
Slide 13
TABLE OF CONTENTS
TRANSACTION OVERVIEW
CONCLUSION
Slide 14
SALIENT TERMS
Maybank Level - Risk Weighted Capital Ratios The Group intends to boost our capital strength
13.95%
via the issuance of equity, debt or a combination
13.28% 13.28%
of both to fund business growth opportunities
10.97%
Kim Eng has ample capital to grow its business
Min requirement = 8.0% As the Acquisition is estimated to be completed
by May 2011, it is not expected to have any
material
t i l effect
ff t on the
th earnings
i off the
th Maybank
M b k
Group for the financial year ending 30 June 2011
As at 30 Sept 2010 Prof orma f or Div. & Prof orma (a) + 100% Prof orma (b) + Capital
DRP (a) Krypton (b) Raising (Equity and/or
Sub-Debt)
Source: Maybank & Kim Eng’s Sep 2010 unaudited financial statements
Key assumptions 3. Assumes acquisition of 100% of Kim Eng’s equity
1. Adjusted for dividend payment and dividend reinvestment (“DRP”) 4. Assumes all Kim Eng's total assets as at 30 Sep 2010 are included in the
2. Adjusted for redemption of RM1.0bn sub-debt computation for risk weighted assets
Slide 16
PRO FORMA EFFECTS
Post Acquisition, Revenue Contribution from Overseas Increases from 29% to 33%
Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination
+7%
RM12,872 mm RM871mm RM13,743 mm
Slide 17
PRO FORMA EFFECTS
Post Acquisition, PBT from Overseas Increases from 21% to 25%
Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination
RM5,370mm RM323mm RM5,693mm +6%
Slide 18
PRO FORMA EFFECTS
Post Acquisition, Investment Banking Becomes a Larger Business Driver with 8% Contribution
Revenue
Maybank – FY10 (ended Jun ’10) Kim Eng – FY09 (ended Dec ’09) Pro Forma Combination +7%
RM12,872mm RM871mm RM13,743mm
+ =
Asset Mgmt
Banking Asset Mgmt
8%
100% 7%
Investment
Banking Business & Investment Business &
2% Corporate Banking Corporate
Banking 8% Banking
Global Markets Global Markets
11% 19% 10% 18%
Slide 19
INDICATIVE TIMELINE
6 Jan April T + 14 to
Date: May
2011 (T) 21 Days
Note:
* Latest possible closing date in June, being 60 days from despatch of Offer Document
Slide 20
TABLE OF CONTENTS
TRANSACTION OVERVIEW
CONCLUSION
Slide 21
MAYBANK AND KIM ENG
Exciting Times Ahead
Extends Investment Banking scope and reach in ASEAN, in line with our regional aspirations
Attractive opportunity to gain access to high growth markets with solid fundamentals
Slide 22
DISCLAIMER
Responsibility Statement
The directors of ACSB and Maybank (including any who may have delegated detailed supervision of this
announcement) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this
announcementt are fair
f i andd accurate
t and
d that
th t no material
t i l facts
f t have
h been
b omitted
itt d from
f thi announcement,
this t andd
they jointly and severally accept responsibility accordingly. Where any information has been extracted or
reproduced from published or otherwise publicly available sources (including, without limitation, in relation to
the Company), the sole responsibility of the directors of ACSB and Maybank has been to ensure through
reasonable enquires that such information has been accurately and correctly extracted from such sources or, as
the case may be,
be reflected or reproduced in this announcement
announcement.
Slide 23