Emirates NBD Creating a Banking Leader in the Middle East March 2008
Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward- looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. Emirates NBD undertakes no obligation to revise or update any forward looking statement contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. 1
Contents Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 2
Vision & Mission Emirates NBD’s Vision To be globally recognised as the leading and most dynamic financial services provider based in the Middle East Emirates NBD’s Mission Statement Emirates NBD provides innovative financial products and services to fulfill the financial goals of our customers throughout the world We win and keep stakeholder trust by: � Delivering a personal and superior Customer Experience; � Offering an exciting place to work that encourages career development and rewards Superior Performance; � Contribution to growth and Prosperous Development of the UAE and the Region; � Creating consistent, exceptional, long-term Shareholder Value 3
Emirates NBD – A New Regional Powerhouse • Largest Banking merger in the MENA region. • 56% owned by Government of Dubai; 44% Free Float Creation of the • Largest UAE bank by assets and market capitalization UAE’s Leading • Market share of 21% of Assets and 19% of Deposits Bank • Corporate / Retail banking powerhouse • Significantly enhanced distribution network in the UAE with 114 branches and 440 ATM’s. • Largest bank by assets in the GCC • Top 5 regional bank by market capitalization • Well capitalized with the highest shareholders’ equity among UAE Banks Increased • Expanded regional presence Financial Strength • Significant strengthening of competitive positioning and Scale • Diversified business mix • Strategically positioned to capture high growth potential of domestic and regional market. • Significant cost and revenue synergies driving value creation Superior Value Creation Potential 4
Corporate Structure Government Public of Shareholding Dubai 56% 44% Emirates NBD 100% 100% Emirates Bank National Bank of Dubai International Emirates Islamic Bank 99.8% NBD Investment Bank 100% Emirates Investment Services 100% NBD Securities 99.99% Emirates International Securities 100% Al Watani Al Islami 99.99% Network International National Bank of Dubai Trust Co. (Jersey) 100% 99.99% National General Insurance Co. 36.7% NBD Properties 99.99% Union Properties Group MenaFactors Ltd 48.85% 50% Etc 5
Emirates NBD Board and Management Emirates NBD’s Board was formed with an equal number of members from EBI & NBD � H.E. Ahmed Humaid Al Tayer � Abdullah Mohammed Saleh (Chairman) (Vice Chairman) � H.E. Easa Saleh Al Gurg � Fardan Bin Ali Alfardan � Khalid Jassim Kalban � H.E. Abdullah Ahmed Lootah � Hamad Mubarak Buamim � R. Douglas Dowie � Abdulla Bin Sultan Bin Mohamed Al Owais � Omar Abdullah Al Futtaim � H.E. Mirza Hussain Hassan Al Sayegh � Buti Obaid Buti Al Mulla Emirates NBD has a professional management team � Rick Pudner � Sanjay Uppal (Chief Executive Officer) (Group Chief Financial Officer) � � Abdul Wahed Al Fahim Joachim Block (GM Wholesale) (Chief Risk Officer) � Jamal Bin Ghalaita � Abdulla Qassem (GM IT & Operations) (GM Consumer Banking & Wealth Mgmt) � Shahzad Shahbaz � Husam Al Sayed (CEO Investment Banking) (GM Human Resources) � John Eldredge � Leslie Rice (GM Treasury & Markets) (GM Integration) � Kevin Flannery (GM International) 6
Strong Credit Ratings Current Ratings EBI NBD • A1/P-1 • A1/P-1 Moody’s 1 • A/Positive/A-1 • A/Positive/A-1 S&P 2 • AA- • - Fitch 3 Capital • AA- • AA- Intelligence 4 1 Moody’s Long-term rating/Short-term rating 2 S&P Credit rating 3 EBI’ s Long term Issuer Default rating is AA-; NBD has not been rated by Fitch. Support rating available by both EBI and NBD is ‘1’ 4 Capital Intelligence Foreign currency long term rating for EBI recently upgraded to AA-. 7
Introduction Rationale for the Merger Financial Overview and key Indicators Integration Update Strategic Focus Appendix 8
Merger context and aspirations What merger has led to so far … Creation of UAE champion • Largest UAE bank by assets and The merger provides a strong foundation … market capitalisation • Enhanced distribution network and 1 To become the leading regional financial business mix strengthening institution, with an increasing international competitive position presence Increased financial strength/ To leverage financial strength, scale and 2 scale market positioning to capture domestic and regional opportunities • Largest bank in GCC by assets and Top 5 player by market To become the partner of choice for 3 capitalisation corporate and retail clients seeking financial services in the GCC • Increased regional presence Superior value creation potential • Significant cost and revenue synergies driving value creation 9
The merger will provide significant benefits to all stakeholders • Enhanced regional and international expansion opportunities • Increasing financial strength and capital position to support future growth • Value creation through established management expertise and best practices Share- holders • Enhanced career opportunities • Greater convenience through broader domestic branch and • Improved training and career ATM networks development capacity • Wider access to regional and • Greater ability to attract and retain inter-national markets top talent • Broader product suite Customers Employees 10
Emirates NBD leads the UAE Banking Sector . . . Assets Equity Net profits $b, YE 2007 $b, YE 2007 $m, FY 2007 Emirates Emirates Emirates 69.1 1,098 5.2 NBD NBD * NBD Nat. Bk. of Abu Dhabi Nat. Bk. of 3.1 682 38.0 Abu Dhabi Comm. Bk. Abu Dhabi Nat. Bk. of Abu Dhabi 579 Mashreq 28.9 3.1 Abu Dhabi Comm. Bk. Abu Dhabi First Gulf 2.8 568 Mashreq 23.9 Comm. Bk. Bank First Gulf First Gulf 2.6 Mashreq 547 19.9 Bank Bank Union Nat. Union Nat. Union Nat. 321 15.1 1.8 Bank Bank Bank Abu Dhabi Abu Dhabi Comm. Bk. 255 1.5 12.0 Invest. Bk. Invest. Bk. of Dubai Comm. Bk. Comm. Bk. Abu Dhabi 1.3 210 8.3 of Dubai of Dubai Invest. Bk. * Tangible Shareholder’s Equity which excludes Goodwill and Intangibles 11 Source: Bank websites; Press releases; Newswires; team analysis
. . . with the largest domestic market share… 2007 Loans market share* 2007 Deposits market share** $38bn $45bn 9% 9% 23% 19% 14% 10% NBD EBI Emirates EBI NBD Emirates NBD NBD 2007 Islamic assets market share UAE*** Islamic assets 88.9% Emirates NBD 11.1% ($5.3bn) * Includes government loans; Islamic loans; net of provisions; excludes interbank loans ** Includes government Deposits; Islamic Deposits *** Based on 2007 assets for Tamweel, Amlak, SIB, DIB, ADIB and Emirates NBD based on 2007 Annual Results. 12 Source: Retail and corporate loans are included net of provisions
Emirates NBD is the largest bank in GCC by assets FY 2007 GCC ranking by assets Equity GCC ranking by profits $b, YE 2007 $b, YE 2007 $m, FY 2007 Nat. Comm. 69.1 Al Rajhi Bank Emirates NBD 7.9 1,719 Bank Nat. Comm. Nat. Comm. 55.6 Al Rajhi Bank 1,603 6.3 Bank Bank Nat. Bank of Nat. Bank of SAMBA 42.3 1,279 5.5 Kuwait Kuwait Kuwait Finance 41.0 1,187 SAMBA 5.2 Emirates NBD * House Nat. Bank of Kuwait Finance Emirates NBD 38.0 5.1 1,098 Abu Dhabi House Nat. Bank of Al Rajhi Bank 1,002 33.3 SAMBA 4.8 Kuwait Arab Banking Qatar National Riyad Bank 822 32.7 3.8 Corp. Bank Banque Saudi 32.3 3.5 Riyad Bank 722 Riyad Bank Fransi Abu Dhabi Qatar National Kuwait Finance 32.1 3.1 689 Comm. Bank House Bank Nat. Bank of Nat. Bank of Qatar National 31.4 682 3.1 Abu Dhabi Abu Dhabi Bank U.A.E. KSA Kuwait Qatar Bahrain * Tangible Shareholder’s Equity which excludes Goodwill and Intangibles 13 Source: Bank websites; Press releases; Newswires; team analysis
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