Barclays Plc · LSE:BARC
Barclays — Merger or Acquisition (April 2007)
45 slides from Barclays's merger presentation, Apr 24, 2007
Slide 1: Combination of Barclays and ABN AMRO Investor presentation
Filed by Barclays PLC Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14d-2 under the Securities Exchange Act of 1934 Subject Companies: Barclays PLC (Commission File No. 1-09246) Barclays Bank PLC (Commission File No. 1-10257) ABN AMRO Holding N.V. (Commissio
Slide 2: Contents
BARCLAYS Transaction Page Contents The Significant Financial Expected opportunity timetable metrics expected highlights ABN14and AMRO 42synergies capital 1 4031
Slide 3: Strategic context
running BARCLAYS Strategic “It’s clear acontext fast to us ABN moving thatAMRO theand bestappropriately way for Barclays integrated to attack universal the enormous bank.” (John commercial Varley: opportunity 2006 Resultsgenerated Announcement) by growth in the global financial services industry ove
Slide 4: Transaction creates a strong combination
BARCLAYS •This Building Creating Driving transaction aaon significant powerful ABN thecreates strengths AMRO competitive and a strong sustained and values combination force increment ofon both behalf Barclays over of stand-alone customers and ABN and growth AMRO employees and value for shareholders
Slide 5: How will shareholders benefit?
BARCLAYS How •– “Earn, Top Growth Growing Returns strong developing accelerating will quartile invest underlying in on shareholders enterprise EpS capital ABN brand and TSR recruitment and grow” over AMRO equity performance that economic value expect time benefit of derived new relative toprofit fro
Slide 6: Transaction overview
Transaction overview BARCLAYS ABN AMRO • 3.225 new Barclays ordinary shares per ABN AMRO ordinary shares Key terms • Equivalent to €36.25 per ABN AMRO ordinary share(1) •Structure Corporate Pro-forma UK Full Regulatory Completion incorporation, weighting and • Unitary ownership and of • LSE employee
Slide 7: Sale of LaSalle Bank
BARCLAYS •Sale We The Condition Completion Full Est. Buy-backs Combined of continue €12bn combined value LaSalle of group to excess ABN expected to offer the be Bank group expect executed sale will AMRO capital that towill of prior continue our Bank LaSalle LaSalle following continue after US toofco
Slide 8: The transaction will generate attractive financial returns
• 33% BARCLAYS The transaction to shareABN price willAMRO generate of ABN AMRO attractive ordinary financial shares returns Premium on 16th March 2007 – Total •Synergies Implementation Cost:revenue: Net synergies: €2.8bn €0.7bn €3.5bn costs: €3.6bn by 2010 Capital • Target equity tier 1 ratio of 5.7
Slide 9: The transaction accelerates the strategic priorities of both banks
The transaction BARCLAYS ABN accelerates AMRO the strategic priorities of both banks Barclays (1) Consistent BARCLAYS Build Accelerate Develop EnhancetheRetail operational best strategic growth bank andofCommercial in priorities excellence global the UK businesses Banking activities in selected coun
Slide 10: Enhanced offering and world class product capabilities
BARCLAYS Offering World Enhanced Expanded Deep •– Affluent Asset Africa Asia Wealth Retail Credit Commercial Payments Investment Europe US Brazil Middle Taiwan UK local Netherlands Italy Spain Portugal India Indonesia China Hong Pakistan Singapore class Management Kong Banking Cards Management world
Slide 11: Creating an institution with attractive mix of geographies and products
Creating an institution BARCLAYS ABN AMRO which combines strength in key activities with substantial exposure to high growth markets and segments Attractive mix of geographies(1) and products(2) Developing 24% 36% 6% 17% 70% 47% Wealth Asset Retail 53% Note: 1) 2) Based US Developing UK US Netherlan
Slide 12: Target top quartile cost:income ratios for each business
The combination will target top quartile cost:income ratios for each business Barclays(1)(3) (€bn) Income 2002 PBT 0.75 CAGR 69.6%0.80 10.5 2003 67.0% 14.0% 31.7 CAGR 7.7 2004 25.42005 0.62 20.7 6.7 60.5% 20022006 CAGR 16.6 2003 60.7% 0.49 18.2 2004 20.9% 5.6 2005 CAGR 58.5% 4.72006 2002 58.4% 17.5%
Slide 13: Board structure
BARCLAYS •Board Chairman, Deputy 910directors directors structure chairman, Arthur from ABN from and ABN AMRO Barclays Martinez Marcus membership AMROAgius
Slide 14: The Executive Committee leadership team
BARCLAYS The Executive John Robert President, Frits Ron Chief Chris Piero CEO Huibert Paul Group * Indicates management Teerlink Idzik Seegers* Varley* of Continental Overmars Lucas* Executive Operating Finance Chief E. Boumeester* GRCB Diamond* CEO committee board Administrative Operating ABN Direc
Slide 15: Contents
BARCLAYS Transaction Page Contents The Significant Financial Expected opportunity timetable metrics expected highlights ABN14and AMRO 42synergies capital 1 4031
Slide 16: Global Retail and Commercial Banking opportunities
BARCLAYS •Global DrivesRetail Captures Strengthens efficiency growth ABN and broadens Commercial through AMRO and scalestrong customer benefits Banking: positions product in developed Theincombination offerings: developing marketsmarkets of Barclays and ABN AMRO operations will create significant fr
Slide 17: Global Retail and Commercial Banking: enlarged network
Global Retail ABN BARCLAYS and Commercial AMRO Banking: The enlarged network creates opportunity to grow faster in global products and segments 2.5 4th Largest Global Retail and share 2 Commercial bank Global 1.5 market U 0 % •0.5 Complementary Strong Relevance Economies Enhanced nicredito 1 presenc
Slide 18: Global Retail and Commercial Banking: UK, Netherlands, Italy, Iberia
Global Iberia BARCLAYS Position bank Branches bank UK Retail • 2,021 ANetherlands leading ABN ABN-AMRO and 643 Commercial AMRO UK 1,045 Italy • Top 586 Antoveneta Iberia player Retail Banking: in Customers ABN • Creating 8th largest AMRO14m a leading bank BARCLAYS 6m 1.5m •Aposition leading 0.6minNu
Slide 19: Strongly positioned to capture growth in developing markets
Global Retail ABN BARCLAYS and Commercial AMRO Banking: Strongly positioned to capture growth in developing markets 2006 Group profit split(1) Developing 2006 PBT Split Markets South24% Africa 8% Brazil 6% Asia 5% Sub-Saharan 2% Africa Other developing 3% mkts INCOME CAGR(2) Nominal GDP(4) CAGR Key
Slide 20: Global Commercial Banking
BARCLAYS Global Commercial Mass Credit Trade Mid-market •– ABN Ability Merge Offer Expand Enlarged Improved Barclays Significant Deliver Exploit Cross-sell EU Affluent and Finance Cards AMRO Retail leading Premier to the complete distribution Asia; is offers customer capture cost wealth Retail oppor
Slide 21: Investment Management and Banking positions
25% 23% BARCAP Investment 39% BARCLAYS Note:19% Investment 18% 21% GS Banking Management ABN Blackrock Bear 15% 11%management AMRO LB 10% 11% andSG PBT State Investment PBT 7% 9%-4% CAGR DB6% Street CAGR includes ML(2000-2006) 6% 5%CS Mellon Management: 5% -8%7% (2000-2006) BNP BGI 4%UBS and 4% Barc
Slide 22: Investment banking and asset management revenue pools
BARCLAYS markets opportunity Pools, 7-10% growth 340 870 250 280 Estimated Investment Barclays Asset Wealth~6% $bn, expected ~1% over areShare Global Management, Asset Banking ~3% 2006 large for next Management, ABN growth annual of banking, 10 Wealth and Revenue AMRO Top years and highly 5Investmen
Slide 23: Investment Banking benefits
BARCLAYS •Investment Barclays A + C =Accelerates Considerably Extensively Leverages Benefits Crystallises onfidence BN AMRO product from Banking: in middle ABN mission significant footprint broadens continuing enhances ABN and AMRO market Combination AMRO’s operating toand geographical be cost produ
Slide 24: Investment Banking: pro forma income ranking
BARCLAYS Investment 2006 ABN Barclays 24.9 UBS 9.2 6.1 19.2 JPM pro AMROforma 17.2 ML Banking: ABN Total 16.5 Investment AMRO 15.3 (Pre- The15.1 combined GSBanking 14.6 synergies) 13.8 entity Income, DBwill MS €bn create Citi a premier global player in risk management and financing
Slide 25: Investment Banking: extended product capabilities
Asset Class BARCLAYS Investment Extended Barclays Capital product Banking: Income ABNcapabilities AMRO ABN The AMRO combineddelivers entity provides broader and deeper product capability 03-06 CAGR(1) Credit •FX Private (1) Attractive Solid Leading Strong Leverage Combined Barclays 24% 19% ECM Equit
Slide 26: Investment Banking: broader geographical footprint
Geography BARCLAYS Investment Broader Barclays geographical Capital Income Banking: ABN AMRO ABN The footprint AMRO combined delivers entity also delivers a significantly stronger geographical presence 03-06 CAGR(1) • Number one position in the Netherlands • Banking (1) Significant Extensive Establi
Slide 27: Barclays Capital income and PBT
BARCLAYS Investment Barclays Income PBT 1999 Interest Credit Up WorkInflation (€m) 2000 with Spreads (€m) Rates Capital: 640 top 2001 Banking: Up ABN 9,193 (ST) tier 857 Up Down 2002 Model clients; Up AMRO Down 6,608 Business 2003 Up Down delivers 5,160 Down attract 2004 Up model 4,167 Up Down acros
Slide 28: Barclays Capital headcount and cost discipline
BARCLAYS Investment Barclays Headcount 6,608 2000 Cont. ABSA Build-Outs Japan HomEq 2001 Europe CAGR Capital Core Capital: 2002 (FTE) Banking: ABN 5,160 Risk Footprint 2003 Cost 5,000 Mgt AMRO 3,560 Barclays 2004 discipline US Product 5,600 4,167 &2005 Asia 5,700 Capital’s & Income maintained 2006 F
Slide 29: Wealth management funds
Funds BARCLAYS Investment Top (bn) 600 400 1,600 1,800 370 187 10under global management 183$ Management 200 ABN Wealth 0 AMRO 1,400 Manager – Wealth 1,200with 1,000 management: compelling 800 franchise The combination creates a global wealth management leader with leading European coverage with pri
Slide 30: Investment Management: BGI asset management
Investment Management BARCLAYS ABN AMRO – Asset management: BGI’s historical performance has been stellar and well recognised in the market BGI’s Growth in Assets, $bn 1,814 1,513 1,362 1,070 784 802 769 746 619 410 500 264 1995 Net BGI •5th 1st Worldwide Global Foreign new Market League 1996 manage
Slide 31: Investment Management: ABN AMRO Asset Management
BARCLAYS Investment Barclays 1,933 PBT 108 •2002 – An ABN Considerable Target Well Broad 151 extensive (€m) 2003 ‘02 diversified AMRO range ABN Global –Revenue 2004 Management ‘06 ABN 100 AMRO of distribution offers upside 1,310 Investors 2005 high ‘02 client AMRO (€m) capability –1,047 in 2006 reta
Slide 32: Contents
BARCLAYS Contents Transaction The Significant Financial Expected opportunity Page timetable metrics expected highlights ABN14and AMRO 42synergies capital 1 4031
Slide 33: Total synergies of €3.5bn
Total synergies BARCLAYS ABN of €3.5bn: AMRO€2.8bn cost-related and €0.7bn in net revenue synergies Expected Total Synergies by Year (1) (€m) Implementation Net 2,800 2,080 2008 CostRevenues 31% 2009 2,080 74% 2010(1) 400 700 100% costs: 870 Net(470) Phasing €3,600m costs Net 3,500 revenue (67)% 0%
Slide 34: Cost synergies categorised into sets of actions
Cost synergiesABN BARCLAYS can be AMROcategorised into 5 sets of actions Initiative €m% of combined 2006 cost base (1) Headcount 160 Total (1) Source 0.5% €2,800m 2006 Rationalisation 8.7% Annual Reports; 1,610 5.0% Total IT CostPlatform base adjusted / Software for ABN Consolidation AMRO restructur
Slide 35: Global Retail and Commercial Bank: cost reduction potential
Global Retail ABN BARCLAYS and Commercial AMRO Bank: significant cost reduction potential primarily through middle-back office and IT consolidation Synergy Split / Phasing (1) (€m) Implementation 150 Global 1,800 Management Net Revenues costs:IT€2,320m Operational 70 1,650 540 Market Cost Total530 N
Slide 36: Investment Banking: coverage extension and expertise
Investment Banking: BARCLAYS ABN AMRO coverage extension and complementary expertise drive substantial benefits Synergy Split / Phasing (1) (€m) Implementation Net Cost 150 StaffRevenues 850 500 Costs 700 1,350 Infrastructure costs: €1,060m Costs Net Revenue Total costs Synergies Synergies €m 2010 2
Slide 37: Investment Management: higher productivity
Investment Management: BARCLAYS ABN AMROdrive higher productivity through greater distribution strength Synergy Split / Phasing(1) (€m) Implementation Net 20 Branch 100 Revenues 10 & Product 70 50costs: 150 AssetCost €70m Total Costs Net Total IT Mgmt. Revenue Synergies €m 2010 2006 Cost:Income(2) 2
Slide 38: A lean corporate centre in Amsterdam
A lean corporate BARCLAYS ABN centre AMRO will be created in Amsterdam Synergy Split / Phasing(1) (€m) Implementation 10 Staff 200 IT20Consultancy 20 150costs:Property €150m Total Costs • Cost synergies represent 24.9% of 2006 combined corporate centre cost base(2) •Sources 1) 2) Note: Single Barcla
Slide 39: Synergies are conservative
BARCLAYS Synergies •Investment We Detailed Barclays Synergies Mass Internet Network Share Cross-selling expect affluent ofbased are wallet bottom-up and effects Banking have are further ABN based ABN of stated offering applications from been expanded from AMRO revenue on AMRO synergy atsubject impro
Slide 40: The Synergies benchmark against other transactions
BARCLAYS The Synergies 20% B Revenue 5.2% arclays ofexpected 9% Source: 5.2% 6% synergies Bbreakdown Implementation 254%270% Barclays % Cost 20.5% synergies total 21.3% arclays- 9% ABN 4.5% synergies Revenue Barclays- synergies% (% AMRO (% 3.6% 19.0%Dsmaller costs 180% of 37% of anske- benchmark syn
Slide 41: Contents
BARCLAYS Transaction Page Contents The Significant Financial Expected opportunity timetable metrics expected highlights ABN14and AMRO 42synergies capital 1 4031
Slide 42: Capital management
BARCLAYS •Capital – Apply Target Overall Maintain Buy-backs Initialmanagement Pay-out Interim Dividends Financial value-based strong 5.75% 7.75% dividend portfolio dividend ratio Barclays modelling to declared paid remain ABN AA grow equity tier over-time free based to rating approximately AMRO 1par
Slide 43: Contents
BARCLAYS Transaction Page Contents The Significant Financial Expected opportunity timetable metrics expected highlights ABN14and AMRO 42synergies capital 1 4031
Slide 44: Expected timetable
BARCLAYS Expected July Today August •Q4 Announcement Offer Class Shareholder Completion 2007 2007 documentation 12007 circular timetable ABN of EGMs Bank transaction of toAMRO agreement beof posted posted America’s to to onABN Barclays terms acquisition AMROshareholders shareholders of LaSalle Bank
Slide 45: Important information and forward-looking statements
BARCLAYS securities shall transaction Schedule Such BECOME (http://www.sec.gov) some announcement document as number those sometimes among of impairment group’s and AMRO’s http://www.abnamro.com, date circumstances ABN Information IFRS and the amended, the they The be documents, AMRO jurisdictions,