BANKINTER, SA

Otras Comunicaciones #28731 - 14/05/2009 13:27

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Expanding
business
Increasing
capital
•   This presentation is not a Prospectus and investors should not subscribe for any New Shares or
    purchase any Pre-emptive Subscription Rights referred to in this presentation except on the basis of the
    information contained in the Prospectus.
•   This presentation does not constitute an offer to sell, or a solicitation of an offer to subscribe for, the
    Pre-emptive Subscription Rights or the New Shares being issued in connection with the Rights Issue, in
    any jurisdiction in which such offer or solicitation is unlawful.
•   The distribution of this presentation and/or the prospectus and/or the transfer of Pre-emptive
    Subscription Rights and/or New Shares into jurisdictions other than Spain may be restricted by law.
    Persons into whose possession this presentation comes should inform themselves about and observe
    any such restrictions. Any failure to comply with these restrictions may constitute a violation of the
    securities laws of any such jurisdiction.
•   The Share Securities Note and the Summary of the share capital increase of Bankinter, S.A. with pre-
    emptive subscription rights through the issuance of ordinary shares of the Bank (the “Capital Increase”)
    are currently pending approval by the National Securities Market Commission (“CNMV”) in Spain. Once
    approved, the Share Securities Note and the Summary, together with the Share Registration Document
    approved and registered by the CNMV, will constitute the Prospectus of the Capital Increase, which will
    be made available to investors on the web sites of Bankinter and the CNMV (www.cnmv.es)and at the
    registered offices of Bankinter.
•   Bankinter cautions that this presentation contains forward looking statements. Such forward looking
    statements are found in various places throughout this document and include, without limitation,
    statements concerning our future business development and economic performance. While these
    forward looking statements represent our judgment and future expectations regarding the
    development of our business, a number of risks, uncertainties and other important factors could cause
    actual developments and results to differ materially from our expectations. These factors include, but
    are not limited to (1) general market , macro-economic, governmental and new regulations, (2)
    variation in local and international securities markets, currency exchange rates and interest rates as
    well as change to market and operational risk, (3) competitive pressures, (4) technological
    developments, (5) changes in the financial position or credit worthiness of our customers, obligors and
    counterparties.

                                                        2
1.   Transaction overview
2.   Strategic rational
3.   Impact in figures
4.   Right Issue details
1. Transaction overview
Transaction terms


     Transaction trigger: Change in control in RBoS


 Independent Valuation leading to an attractive price to
                         BK




Acquisition
  of 50%                 Price                 Paid in
   stake                426M€                   Cash
 held by RBos
2. Strategic rational
Strategic rational of LDA transaction


                   Resilient
                               Perfect fit
   Leader in       business
                                  with
  The Spanish     model and
                               Bankinter
  Direct Motor    attractive
                               strategic
   Insurance       financial
                                 levers
                 performance




                                  … low
   Synergy
                               integration
   potential
                                   risk
A cash rich company due to excess
provisions and solvency margin




      19M€                180M€
                           Excess solvency
      Excess provisions   margin over 150%
The payment of an extraordinary
dividend of 180M€ reduces the price
paid for LDA
3. Impact in figures
Impact summary


                     LDA + Right Issue
 Capital
 Impact      ●≈ +0,18% Core Capital
             ●≈ +0,04% Total Capital


            ●+ 50% contribution from RBoS stake
 Earnings   ●+ 2009 - positive additional P&L 19M€
            ●+ NPV synergies 150M€
Capital
 Price in excess of book value amounts
 to 240M€…
                      Price in excess Book Value

                             240M€


Intangible   ● Individually identified and
  assets       valued ( client portfolio….)
             ● Are recognized:
                 ● gross of taxes
                 ● for the whole company

Goodwill     ● The rest
             ● Recognized :
                ● net of taxes
                ● for the acquired part
… leading to the following impacts
on capital ratios before the capital
increase



     ≈1,13%           ≈ 1,27%
      Core Capital      Total capital
An investment with rapid capital
generation capacity




              304M€
           Core capital generated
                 in 5 years
 The right issue is done exclusively to
 finance LDA acquisition

Impact on capital

                   LDA                       Net    As % of
                            Capital call
                acquisition                impact   RWAs

core                -312        361         50      0,18%

Tier I              -337        361         24      0,09%

Tier II             -14          0          - 14    -0,05%

Total Capital       -351        361          11     0,04%
Earnings
 Significant earnings contribution …

 LDA Net Income                                          Synergy generation – Impact in Net Income




                                      101,0
  93,5
                             87,8
           78,3     80,1




2009* 2010 2011 2012 2013


         Conservative P&L                                 Minimum synergies with
            estimates                                     no investment required

* Includes 19M€ gross excess provisions to be released
… and positive impact on
shareholder value from day one


                     Analyst consensus EPS accretion in
                     percentage terms*

                                                 11,1

 Accretive                               6,1
   from first year

                      0,4      0,4

                     2009      2010     2011      2012
Leading to attractive transaction
multiples…

                          7,7
        1,81
        X BV            PE 2009
                            (8,6 2010)




                 X3
               BK clients
… and return on investment ratios




              39,3%
           Internal Rate of Return




        ≈ 26,1% ROC
                Avg. in 5yrs
4. Right issue details
Right issue transaction terms


                  Preferential
     Capital                       67,5M
                  subscription
    increase                       Num. of
                     rights
     361M€                         Shares
                      1X6




                  Discount to
                    market        Theoretical
  Eur 5,35€ per
                    38,8%           value of
      share
                   to TERP       rights 0,48€
                    35,2%
Shareholder structure

                                          CAsa
            17,4                          Cartival
                             23,4
                                          Board + employees
                                          Inst. National
     22,0                                 Caja Madrid
                               16,3
                                          Inst. Foreign
            4,7                           Retail national
               4,4 11,9




       56,2%                          17,4%
  Significant shareholders            Spanish retail
   Transaction schedule

                 19th of May
                 19th of May

                 Start of subscription period
                 Start of subscription period
13th of May
13th of May
Board approval                                     5th june
                                                   5th june
Board approval
and “Hecho
and “Hecho                                         Estimated
                                                   Estimated
relevante”
relevante”                                         Settlement
                                                   Settlement




 14th of May
 14th of May
                                                                2 weeks
                                                                2 weeks
 CNMV approval
 CNMV approval           2nd of June
                         2nd of June
                                                                New shares start
                                                                New shares start
                         Subscription period end
                         Subscription period end                quoting
                                                                quoting
Bankinter has historically optimized
the use of capital
- Capital evolution (in %) -

    25

    20
                  Last
    15           capital              41,3%
                                      capital bought
                 call in                   back
    10
                   ‘90
     5

     0

    -5
         1990   1992   1993    1994      1995          1996   1997   1998
   -10

   -15


                                         26
In summary
LDA acquisition represents a
financially compelling transaction
Significant value creation through cross selling
opportunities


The transaction has limited impact on capital


LDA will be more valuable under BK ownership


The right issue will be acreetive to shareholders
A different
kind of bank,
stubbornly
different.


Fuente: CNMV

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