Boucher Corporate Strategy
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Transcript of Boucher Corporate Strategy
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Corporate Bankings Growth Strategy
Richie Boucher, Chief ExecutiveBank of Ireland Corporate Banking
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Purpose of todays briefing:
To define Bank of Ireland Corporate Banking
Outline Growth Strategy
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Who we are :
Group
Chief Executive
Wholesale FinancialServices
Corporate Banking
Richie Boucher
IBI Corporate
Finance
First Rate
EnterprisesGlobal Markets Davy
Global ProjectFinance
Adrian Olsen
Domestic CorporatePat Gaynor
Specialised BankingTom Hayes
Institutional BankingFinbarr ONeill
Property FinanceGerry Burke
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Who we are:
Focussed on building relationships in Ireland
375 staff grown by in excess of 100 new recruits (c. 40% increase)over last 18 months
2005: Multiple locations - Ireland, UK, France, Germany and US
Focussed on niche sectors outside Ireland and continued expansioninternationally
Contributes 15% to Group profits at March 2005 - strong trendcontinues
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Concentration on three of the best Economies...
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GDP Growth (annual average 2003-2005)
Ireland US UK eurozone
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Our Strategy
Relationship based approach in Ireland
High growth sectors internationally with focus on niche markets
Skill not scale
Sectoral / Product expertise
One Stop Shop for customers
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1. Property Finance Group
Strategy:
High end niche property business
Focused on transactions in excess of > 30m
Arranger of deals in Ireland, UK, Europe and US
Significant bilateral relationships
Capability and Performance:
26 professionals to increase further with new London basedProperty team before financial year end
Profits doubled last year - strong trend to continue
Property Finance represents 15% of our total commitments
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1. Property Finance Group
Retail
Residential
Office
Leisure/Hotels
Other
Industrial
34%
36%
9%3%
2%
16%
Development
Investment
47% 53%
Sectors
Transaction Type
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2. Domestic Corporate Business
Strategy:
Primarily privately owned and/or managed businesses operating in orout of Republic of Ireland (typical borrowing need of > 20m)
Incorporates a team dedicated to the domestic leveraged acquisition
market (typical borrowing need > 10m) Incorporates our Business Development team - Banked over 50% of
new IDA projects / expansions over the past year
Capability and Performance: 29 banking professionals spread across 4 teams
In excess of 200 customers representing 7% of our total commitments
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2. Domestic Corporate Business
Some Recent Achievements:
Funding for acquisition of Superquinn by Irish investor group solelystructured and arranged in August 2005
Overseas investment by Irish food business
Recap of MBO in distribution sector Acquisition of new sites by Irish retailer
Buy out of minorities in all Ireland service business
Debt restructure and hunting licence for building materials business
Funded acquisition by Dynasty Accessories of the Sasha retail chain to createa more broadly based Irish retail business.
Funded Premier Groups most recent acquisition of Nigel Lynn and
Associates the largest Independent UK based finance and accountancyrecruitment business
Partnered the Newcourt Group - acquisitions designed to assist itsdevelopment into a broadly based outsourcing service provider specialising
in security
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3. Institutional Business
Strategy:
Major international and domestic client relationships incl. IFSCcompanies
International Investment Grade lending
Purchase of Asset Backed Securities
Portfolio Management
Management of syndicates - acting as Agent Bank
Specialist Product / Policy Implementation
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3. Institutional Business
Capability and Performance:
Global spread of business with 58 banking professionals teamslocated in Dublin, London and US
Largest contributor to Corporate Bankings overall income with inexcess of 590 transactions representing approx. 40% of our totalcommitments
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3. Institutional Business
Some Recent Achievements:
Only 2 Private Placements executed from Ireland this year forcombined value of US$525m successful alliance with Macquarie
Securities (USA) Inc Appointed Agent Bank on major transactions negotiated in Irish
market recently by Kerry Group Plc, Greencore Plc, NTR Group Plc
In excess of 1bn of new Asset Backed Securities assets acquired infirst five months of 2005/2006
Secured range of new banking relationships in IFSC such as UBS;Allied World; Vicenza Life
4 Gl b l P j Fi
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4. Global Project Finance
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8090
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2001 2002 2003 2004 2005
# Projects
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500
1000
1500
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2500
3000
2001 2002 2003 2004 2005
'm
Focus on infrastructure and energy(transport, accommodation, wastetreatment, oil and gas, power,environmental)
Markets : UK, Ireland, Europe, NorthAmerica and Middle East
Strategy:
Capability and Performance
26 professionals in London, Dublin andUS
In excess of 100 customers
representing 9% of our totalcommitments
High quality arranging andunderwriting capability
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Year on Year Sector Mix and Current Sector Split
2500
Po In
fra
Oil
&Gas
2002
2003
2004
2005
Infrastructure
42%
7%
18%13%
14%
6%
Roads RailAccommodation Waste/WaterNon-PFI Other
2000
1500
1000
500
0
wer
4 Gl b l P j t Fi
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4. Global Project Finance
Some Recent Achievements:
Significant Lead Arranger and underwriting roles signed include:
Vancouver Airport Rail Link (Canada)
Whistler Sea-to-Sky motorway (Canada)
Arsenal FC Stadium (UK) Schools PFI* including Bristol, Sheffield, Darlington (UK)
Motorways PFI* including M5 Hungary, R4 and R3/R5 Spain
Schools PFI* including Tyrone and Omagh (Northern Ireland)
Only Irish bank to feature in Top 10 for 2004 Dealogic Project Finance Reviewtables for Mandated Lead Arranger and Arranger roles
* PFI Private Finance Initiatives
5 S i li d Fi B i
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5. Specialised Finance Business
Strategy:
Diversified international business
Focussed on niche skill based sectors
Leveraged Finance
Comprehensive Asset Based Lending (CABL)
Media
Maritime Industries
Telemedia
Capability and Performance:
135 banking professionals located in Dublin, London, Paris, Frankfurtand Connecticut
In excess of 300 customers representing 28% of our totalcommitments
5 Specialised Finance Business
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5. Specialised Finance Business
Market Positioning:
Leading player in European and US leveraged finance markets
Burdale leading CABL lender in UK Media Team very strong market position in UK
Film Finance very strong market positions in UK and US
5 Specialised Finance Business
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5. Specialised Finance Business
Some Recent Achievements:
Media Team : UTV acquisition of The Wireless Group
140m debt facility arranged, structured and fully underwritten by BOI
Leveraged Finance Team: Arcapita acquisition of Vogica
55m debt facility arranged, structured and fully underwritten by BOI.
First transaction completed under Shariah law
Burdale : Stead & Simpson CABL facility provided
Successful turnaround story
Maritime: Enterprises Shipping and Trading
5 Specialised Finance Business
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5. Specialised Finance Business
Some Recent Achievements:
Film Finance Team:
The Libertine [Johnny Depp]
Breakfast on Pluto [Neil Jordan]
Matchpoint [Woody Allen]
Half Light [Demi Moore]
Heidi [Max Von Sydon / Diana Rigg]
Significant developments over last 18 months:
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Significant developments over last 18 months:
Acquired Burdale Financial Holdings Limited (UK)
Significant recruitment in the business of specialist expertise - inexcess of 100 additional staff over last 18 months
Recruited the UKs leading media finance team
Established an alliance with Macquarie Securities (USA) Inc
Opened our first office in Continental Europe (Paris)
Enhanced focus on Domestic Corporate and Property
Extending the footprint across all sectors
Our Approach for Growth
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Our Approach for Growth
Centralised relationship managementsupport to: Large domestic / property companies Multinational companies
IFSC/ financial services sector Inward investment into Ireland
Specialised finance on global basis:
Property finance Project finance Leveraged and acquisition finance Maritime finance
Media finance Telemedia finance Investment grade lending Asset based lending
Ireland
International
Where to Next ?
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Where to Next ?
Ireland The best Corporate Banker forDomestics [ambitious targets
to double size of businessover next 5 years]
Continues to be the leading banker for
Multinational Companies
Property business of scale
Where to Next ?
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Where to Next ?
UK Leading player in ComprehensiveAsset Based Lending
Strong specialist niche teamsActivities spanning:Mid / Large Leveraged
Acquisition FinanceComprehensive Asset Based
LendingInvestment GradeGlobal Project FinanceHigh end Property - new presence
in London by end of financial year
Where to Next ?
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Europe Paris [Opened March 2005] and furthereuropean office planned to open byend of the year
Strong specialist niche teams
Activities spanning:
Mid / Large Leveraged AcquisitionFinanceComprehensive Asset Based
Lending
Investment GradeGlobal Project FinanceHigh end Property
Where to Next ?
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Presence in Connecticut and furtheroffices planned
New Country Head for US appointed
US Strong specialist niche teams
Activities spanning:Comprehensive Asset BasedLending
Mid / Large Leveraged AcquisitionFinanceInvestment GradeGlobal Project Finance
High end PropertyRest ofWorld
Investment Grade
Global Project Finance
Positioned for Growth
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Restructure complete and very successful
40% increase in specialist expertise
Growth Strategy in place
Domestic business to double over next 5 years
Continued expansion of international businesswhich will drive increased profits
Future recruitment plans Ireland andinternationally
Excellent pipeline business
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Questions and Answer Session
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Bank of Ireland Corporate Banking has been a strong supporter ofour business over the years. They are extremely professional andworked closely with us as arranger on our recent 255m corporatedebt facility ensuring a successful outcome.
The relationship team at Bank of Ireland Corporate Bankingworked very closely with us on our recent US$325m PrivatePlacement transaction. Their co-ordination with Macquarie
Securities (USA) Inc was seamless and their skills, innovationand experience was crucial in ensuring a successful outcome.
We were very impressed with the
strength of the Bank of Ireland locallybacked up by its UK corporate mediadivision.
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We are delighted with the enthusiasm Bank Of Ireland has shown through out the project
and we look forward to their ongoing support in the coming years as we realise our vision forBeacon South Quarter.Property Customer Landmark Enterprises
As developers of the largest retail shopping centre outside of Dublin, we are pleased to
work with the Property Finance Group in Bank of Ireland Corporate Banking as sole funder
on this deal.Whitewater S.C., Newbridge
We feel that in the 6 years we have been working together our relationship has
developed strongly with mutual trust on each side & each party delivering the promises
they have madeStead & Simpson
Without Burdales straightforward approach this complicated refinancing would nothave happened.UGC
"The buy-out of Superquinn was one of the largest ever in the Irish Market and we were
delighted to have Bank of Ireland Corporate Banking onboard as they played a key role in the
successful completion of the transaction.Select Retail Holdings
Property Finance Group at Bank of Ireland Corporate Banking delivered on all our
financing needs in a tight timeframe and with the flexibility needed to complete the deal.
Shelbourne Hotel
..Non-Mortgage lending buoyant in Ireland..
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Bank Lending(% change)
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Mortgage Other personal Corporate
US Business spending growing strongly
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non-residential investment(%)
US corporate sector in healthy shape
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Corporate Profits(bn)
And interest rates still very low..
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Cost of Borrowing
Ireland US UK
Worse may be over for Germany..
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