Standard Bank Group Limited · JSE:SBK
Standard Bank — Africa Media Forum (July 2009)
32 slides from Standard Bank's conference presentation, Jul 16, 2009
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Slide 2: Standard Bank Group
Standard Bank Group Jacko Maree, Chief Executive 16 July 2009
Slide 3: Overview of Standard Bank Group
Overview of Standard Bank Group o One of the big four full-service South African banks 147 year history in South Africa Started building a franchise outside South Africa in early 90s o Operate in a range of banking and related financial services 17 countries in Africa 16 countries outside Africa wit
Slide 4: Business unit snapshot of group earnings
Business unit snapshot of group earnings 4
Slide 5: Geographic snapshot of group earnings
Geographic snapshot of group earnings 5
Slide 6: Standard Bank through the crisis
Standard Bank through the crisis o Emerging markets focus No exposure to toxic or sub-prime assets o SA relatively shielded from initial crisis impact Product set with emerging market characteristics • Vanilla loan books e.g. mortgages • Limited exotic gearing High quality regulatory/risk management
Slide 7: Trends shaping the global economy
Trends shaping the global economy *IMF 2008 o Increase in foreign investment o Capital flows becoming multi-directional o Trade flows increased o Emerging markets growing faster
Slide 8: Sustainable competitive advantage
Sustainable competitive advantage Why can we compete in emerging markets? We have a unique African footprint South Africa is an emerging market with well developed, leading edge and highly competitive financial markets. We have a successful business with exportable and replicable o Cost effective an
Slide 9: Sustainable competitive advantage continued
Sustainable competitive advantage continued Why can we compete in emerging markets? Our strategic relationship with ICBC provides us with one of the strongest partners in the future global superpower economy, with a keen desire to participate inter alia in the next phase of development on the Africa
Slide 10: Business Model
Business Model Standard Bank Group Personal and Corporate and Wealth Management Business Banking Investment Banking We organise ourselves across three business units but present ourselves to the market as one – aim for a single brand philosophy
Slide 11: Global Economy
Heritage Business Model What influences the strategy? Vision and Values Global Economy What is the STRATEGY Strategy? How is the BUSINESS ORGANISATION AND STRUCTURE strategy implemented and KEY STRATEGIC DELIVERABLES executed? 11
Slide 12: Who must we satisfy
Who must we satisfy Our People Our Our Shareholders Customers Important Stakeholders 12
Slide 13: Vision
Vision We aspire to be a leading emerging markets financial services organisation
Slide 14: Values
Values 1. Serving our customers 2. Growing our people 3. Delivering to our shareholders 4. Being proactive 5. Working in teams 6. Guarding against arrogance 7. Respecting each other 8. Upholding the highest levels of integrity
Slide 15: Strategy
Strategy To build a leading emerging markets financial services organisation using all our competitive advantages to the full. We focus on delivering superior sustainable shareholder value by serving the needs of our customers and where appropriate connecting them globally. The key differentiator in
Slide 16: Key strategic deliverables
Key strategic deliverables Group EXCO deliverables 1. Grow, develop and recognise our people 2. Ensure that our values live and grow within the organisation 3. Promote a nimble and proactive approach to our customers 4. Deliver superior returns and sustainable growth for shareholders 5. Ensure that
Slide 17: Africa is our calling card
Africa is our calling card ee W Standard Bank
Slide 18: Rest of Africa portfolio
Rest of Africa portfolio Headline earnings contribution for 2008 5% 2% 6% 22% Namibia Uganda 8% Mozambique Botswana 8% Ghana Lesotho Kenya 21% 11% Zambia Other 17% Graph excludes Nigeria contribution for 2008 18
Slide 19: Rest of Africa portfolio: Estimated market shares
Rest of Africa portfolio Estimated market shares 2000 2008 Country % % Nigeria 0 1 Namibia 25 28 Uganda 0 26 Mozambique 1 17 Botswana 1 6 Ghana 0 4 Lesotho 40 62 Kenya 0 5 Zambia 1 7 Malawi 0 25 Swaziland 38 33 Tanzania 0 11 Zimbabwe 20 20 * High growth potential
Slide 20: Optimising opportunities on the continent
Optimising opportunities on the continent Presence L S U Nigeria Kenya M DR B C MZ Z Ghana NM T MR Maintain Grow High Acceleration Angola L = Lesotho ; S = Swaziland ; M = Malawi ; MR = Mauritius ; MZ = Mozambique ; NM = Namibia ; Z = Zambia ; B = Botswana ; U Non Presence = Uganda ; T = Tanzania
Slide 21: Who are our competitors?
Who are our competitors? We compete against multi-national and large local banks Multi-national banks o StanChart, Barclays and Citi o Focus on multi-national corporates, governments, top local corporates, high end retail and business banking o All have slightly different core capabilities but focus
Slide 22: Who are our competitors?
Who are our competitors? Large local banks o Some are now becoming regional players and expanding footprint o Well capitalised with significant market shares o Provide significant competition by virtue of their Low cost of funds, expansive distribution networks, good government relationships, strong
Slide 23: Funding of groundbreaking transactions
Funding of groundbreaking transactions T L T T C L Standard Bank has advised and funded groundbreaking transactions on a global scale, with Africa as a key focus area
Slide 24: ICBC transaction
ICBC transaction o ICBC acquisition of 20% in Standard Bank reflects their interest in our African business o Meaningful earnings synergies expected from business co-operation agreement China-Africa trade and business flows Banking in Africa Banking in China Banking in other International markets 24
Slide 25: Standard Bank and ICBC mandated as joint lead arrangers to finance Botswana power station
Standard Bank and ICBC mandated as joint lead arrangers to finance Botswana power station o US$1.6bn transaction to build new power station, driven by Botswana Power Corporation (BPC) China National Electric Equipment Corporation awarded US$1 billion contract to supply and build a significant portio
Slide 26: Standard Bank and ICBC mandated as joint lead arrangers to finance Botswana power station
Standard Bank and ICBC mandated as joint lead arrangers to finance Botswana power station o Why we won the mandate ICBC finely priced long term funding Standard Bank project finance expertise in Johannesburg Standard Bank global markets expertise in London Standard Bank existing footprint in Botswan
Slide 27: Russia
Russia o Recently announced a strategic partnership with Troika Dialog Group The most established and largest independent investment bank in Russia o Standard Bank will become a 33% shareholder in Troika Dialog Subject to regulatory approvals o We have been operating in Russia for more than 10 years
Slide 28: Challenges for Standard Bank in Africa
Challenges for Standard Bank in Africa o Infrastructure Physical Technical o Attracting the right local skills o Managing complexity Remoteness of operations Regulatory compliance in host countries as well as home Minority shareholders Listed companies Need to be locally relevant and also operate wi
Slide 29: Conclusion
Conclusion o Our strategy is proving to be sustainably competitive o Our African calling card and presence will deliver superior rates of growth over time o Our proven skills will continue to be appropriately deployed in Africa o Our ICBC business co-operation showing strong signs of significant tra
Slide 30: Making the right connections
Making the right connections o New global positioning to better support our strategy o New payoff line: Moving forward o Global and local advertising campaign breaks tomorrow o Extensive staff engagement over the past few weeks – 56 road shows in 25 countries
Slide 31: Standard Bank Global Ad
Standard Bank Global Ad \/& THE WORLD J TOAFRICA ‘With international representation in over 30 countries around the world, we are able to combine our local market expertise and network with our: market to make the right wwrw standardbank.com/movingforward Moving Forward ‘Austhvtsad firancal srvices
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