1 Morgan Stanley Conference Bank of Ireland April 5 th 2005 Brian Goggin Group Chief Executive
Forward Looking Statement 2 This presentation contains certain forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995 with respect to certain of the Group s plans and its current goals and expectations relating to its future financial condition and performance and the markets in which it operates. Because such statements are inherently subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include but are not limited to risks and uncertainties relating to profitability targets, prevailing interest rates, the performance of the Irish and UK economies and the international capital markets, the Group s ability to expand certain of its activities, competition, the Group s ability to address information technology issues and the availability of funding sources. The Bank of Ireland Group does not undertake to release publicly any revision to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date hereof.
Bank of Ireland Group Strategy 3 Clear and Compelling Strategy to: Maximise returns from our leading position in Ireland Substantially grow our businesses in the UK Grow our portfolio of niche, skill-based businesses internationally where we have significant potential to exploit
Ireland s Economic History 4 1922 to 1958 - A basic agricultural economy - Self-sufficiency and protectionism 1973 - Opening up and joining Europe (EEC) 1972 to 1987 - Establishing the building blocks of future success 1987 to date - Recovery, stunning development and growth
FDI Success: Why? 5 US boom, IT growth, EU Single Market People, skills, costs Corporate tax rate Government policy e.g. Education Flexibility, agility, creativity
Ireland s Success Story 6 Approximately 500 US companies have operations in Ireland* Key sectors are ICT, Pharmaceuticals, Medical Technologies, Software, International Financial Services Key operations are Dell, Intel, IBM, Pfizer, Johnson & Johnson, Medtronic, Symantec, Citigroup, GE Capital 130,000 employed by multi-nationals in Ireland 7% of total workforce We have built a dynamic capital markets business on the back of this success story * Source: IDA Annual Report 2003
WFS: Contributes 28% of Divisional Profitability 7 Profit Before Tax by Division for 6 mths to Sept 04 ( m) 8% 26% 200 59 64 216 243 30% Retail Financial Services Wholesales Financial Services Bank of Ireland Life UKFS Asset Management Services 8% 28%
WFS: Organisational Chart 8 Wholesale Financial Services Global Markets Corporate Banking First Rate Enterprises IBI Corporate Finance Davy M 450 400 350 300 250 200 150 100 50 0 Business Unit Profitability 2000 2001 2002 2003 2004 2005 (Estimate) FRE/Davy/IBICF GM CB
WFS Growth Strategy 9 Domestically: We will maintain our position as the leading Treasury, Stockbroking and Corporate Finance Advisors in Ireland We will protect and grow our leading Corporate Banking franchise with multi-national companies and achieve our natural market share of the mid-corporate and property sectors Internationally: Our focus is to target niche sectors: Where skill not scale is required Which exhibit above average growth potential Which allow us move into the driving seat and exert influence over the award of collateral business Where we will build on existing skills, supplementing with bought-in expertise as required
WFS Strategy Getting there safely 10 Credit Skill a core competence Strong Asset Quality well diversified book with no undue risk concentrations Aggressive management of deteriorating exposures - Business Recovery Unit and proactive portfolio management Market Risk-taking - concentrated in well-developed, liquid financial markets and instruments Strong risk culture across the Division
Corporate Banking ( CB ) 11 Strong domestic franchise Leading market share with internationalised Irish corporates and multinationals operating in Ireland Growing market presence in mid-corporate market and property lending Strong growth in International, niche, skills-based businesses Acquisition Finance Project Finance Investment Grade Lending Maritime Finance Media & Film Finance Comprehensive Asset Based Lending 330 Staff (Dublin, London, Paris and Connecticut) 13.3bn Total Lending as at September 2004
CB - Highlights 12 Leveraged Acquisition Finance - 2.0bn Won 9 Mandated Lead Arranger / Joint Lead Arranger roles in 2004 Well diversified by sector and geography Paris office opening in April 2005 Successfully Arranged and Syndicated the first French LBO completed under Shariah Law Project Finance - 1.4bn Ranked 7th in Europe as PFI / PPP Mandated Lead Arranger in 2004 Joint Mandated Lead Arranger for the new Arsenal FC Stadium Appointed as a Mandated Lead Arranger for C$1.8bn light rail system in Vancouver Investment Grade - 4.6bn Substantially asset backed debt securities Joint Lead Arranger in Barchester Healthcare s acquisition of Westminster Healthcare in UK Comprehensive Asset-Based Lending (Acquired December 2004) Completed the acquisition of Burdale Financial Holdings Limited, a leading UK based provider of comprehensive asset-based lending facilities to Mid-Corporates across the UK, mainland Europe and the US. Corporate Banking Ireland - 5.3bn Originated and facilitated Kingspan's US$200m US Private Placement with Macquarie Securities - tightest pricing achieved in history of Irish issues Mandated Lead Arranger, Co-funder and Agent for the refinancing of Green Property's Irish Property Portfolio Co-funder for the acquisition of the Savoy Hotel Group, London and Shelbourne Hotel Dublin
Global Markets ( GM ) 13 No. 1 provider of treasury solutions to our retail, corporate & institutional customers in Ireland Manages the Bank s interest rate and foreign exchange risk Sources global funding to support Group s Balance Sheet Modest proprietary trading within tightly defined limits Strong risk control culture
GM Highlights 14 Winner of the IFR Best Eurobond Issue & Covered Bond Issue 2004 for Inaugural ACS (Covered Bond) Issue No. 1 position in Corporate Foreign Exchange in Ireland in 2004 (average 30% market share per Central Bank) Increasing proportion of income derived from interest rate risk management expertise Successfully working with other Group units to win Treasury business - e.g. swaps for US$ bond placement arranged by CB for major Irish plc
First Rate Enterprises ( FRE ) 15 Specialist provider of foreign currency services both wholesale and retail Operates in Ireland, the UK (through its joint venture with the UK Post Office) and North America Provides foreign exchange product (notes and travellers cheques) and outsourcing services to the BOI Group, the UK Post Office and other 3 rd parties banks, hotels, retailers, etc Leading provider of retail foreign exchange in the UK (market share percentage in high twenties) Successful track record was a key factor in securing the wider Group JV with the UK Post Office
Investment Banking Activities Davy & IBI 16 Davy Leading Institutional, corporate and private client broker in Ireland Holds leading market shares in dealing in Irish equities and bonds: 47% share of all equity dealings on the ISE 32% share of Bond dealings Leading position has been recognised by numerous awards: No 1 Equity Research Team Euromoney Leading Irish Broker Thomson Excel Best Equities House Euromoney Best Research Team in Ireland (for 4 th consecutive year) Institutional Investor IBI IBI Corporate Finance is Ireland s leading corporate finance advisory house It has a team of c.20 corporate finance professionals based in offices in Dublin and Belfast Provides expert, independent advice to public and private companies on: Mergers & Acquisitions MBOs/MBIs Flotations/Privatisations Equity and Debt Raising Financial Restructuring
Summary 17 Sophisticated quality business Significant and growing international footprint Talent-based niche businesses Contributes 28% of Group Divisional Profits Attractive outlook
18 Morgan Stanley Conference Bank of Ireland For further information please contact: Fiona Ross Head of Group Investor Relations Tel: +353 1 604 3502 Fax: + 353 1 661 5105 Email: investor.relations@boimail.com