DBS Vickers Building an Asian Securities Powerhouse

1
DBS Vickers Building an Asian Securities
Powerhouse
Media Fact Sheets - February 13, 2001
2
The Changing Competitive Landscape of the
Securities Business
3
Summary Profile of DBS and Vickers Ballas
Vickers Ballas Background
DBS Securities Background
General

• Vickers Ballas is one of the largest stockbrokers
  in Singapore with the highest market
  capitalisation of S854.3 million(a)
• Key business activities include stockbroking,
  equity capital markets and other financial
  services
• Strong regional presence in Singapore and Hong
  Kong, Thailand, the Philippines and Indonesia

• DBS Securities is the wholly-owned stockbroking
  arm of DBS Bank.
• Offers full broking service in Singapore,
  Malaysia, Hong Kong, Indonesia, the Philippines,
  Thailand as well as a sales office in London
• The July 2000 issue of Euromoney named DBS
  Securities the Best Domestic Securities House in
  Singapore

Business Strategy

• With over 80 of its revenue from stock broking,
  Vickers Ballas is currently actively leveraging
  its strong market share in Singapore to diversify
  to new, less volatile revenue sources through
• Actively building up its unit trusts business
• Tie-ups with fund managers, e.g. Alliance Capital
  Management, ABN AMRO Asset Management, Dresdner
  Asset Management, etc., to improve product
  offering
• Equity Capital Markets Group expanded its
  business activities to include the management of
  IPOs, fund raising exercises, general corporate
  advisory services to clients

• With over 80 of its 1999 total revenue coming
  from traditional stockbroking business, DBS
  Securities plans to upgrade the skills of its
  existing sales force to offer a wider range of
  wealth management products and exploit
  cross-selling opportunities with the Banks
  customer base
• DBS Securities aims to be the first in Singapore
  to automate its processing and settlements,
  allowing for better customer data management,
  product diversification and customisation

Distribution/Online Strategy

• 207 Remisiers and dealers in Singapore, 131 in
  Hong Kong and 7 branches in Thailand
• Online trading platform, vb.com was launched in
  1998 in Singapore and has achieved a near 10-fold
  increase to 17,000 in the number of accounts
  signed up

• 166 Remisiers Dealers in Singapore
• Launched online trading in September currently
  has 5,500 online customers and expects to have
  approximately 15,000 customer by the end of 2001

(a) As at February 9, 2001
4
Introducing DBS Vickers Securities - Transaction
Highlights
Rationale

• Customer focus
• Strategic fit
• Market leadership
• Economies of scale
• Synergies (cost savings and cross-selling)
• Shareholder value creation

Transaction Structure

• Vickers Ballas will distribute to its
  shareholders all of its shares in Vickers
  Capital, representing approximately 80.23 of
  Vickers Capital
• DBS acquires a 59.5 stake in Vickers Ballas
• Shareholders will also receive S0.90 per Vickers
  share
• Singapore Technologies will retain 40.5 stake
  and Vickers Ballas will be taken private
• The entity will be renamed DBS Vickers Securities
• DBS Vickers Securities will acquire 100 of DBS
  Securities

Valuation

• Total cash consideration paid by DBS S443.9
  million
• Total value to Vickers shareholders S1.44 per
  share, representing 40.1 premium to the last
  closing share price or 1.40x Vickers 2000 book
  value (equivalent to 1.19x 2000 book value
  adjusted for the distribution of Vickers Capital)

As at February 9, 2001
5
Brokerage - an Integral Part of Overall Wealth
Management
A Merger with Opportunities
THE CUSTOMER
Products/Services
Products/Services
Deposit
Assets
Borrowings
Cash
Short-termDebts
Brokerage
Credit Cards
Short-termInvestments
Medium-term DebtsLong-term Debts
Long-term (Retirement)Investments

• Unit Trusts
• Pension Funds

• Mortgage
• Other Personal Lending

Net Worth
Home
Insurance
Other Assets
6
DBS Vickers will be a Dominant Player
Total Assets(a) (S million)
(a) As at December 31, 1999 (b) Adjusted for
distribution of Vickers Capital to existing
shareholders (c) As at March 31, 2000
7
Extending Our Regional Presence
Revenue Breakdown by Region(a) DBS Vickers
Securities
Other11
HongKong 42
Singapore 47
(a) Based on unaudited financials for year 2000
8
Bigger Presence to Better Serve the Customer
Wider Range of Products Greater Access
Leveraging DBS Banks Extensive Branch Network
and Customer Base
To Increase Cross-Selling Opportunities
Customer Segments
Products
Channels - DBS Vickers
Channels - DBS Bank

• Unit trusts
• IPO placements
• Fixed income

• Remisiers
• Online

Mass Retail

• DBS Bank branches

Mass Affluent

• Unit trusts
• IPO placements
• Margin trading
• Fixed income

• Financial consultants
• Online

• Priority Banking

• Unit trusts
• IPO placements
• Margin trading
• Wrap account
• FX, Derivatives
• Fixed income

High Net Worth

• Financial consultants
• Online

• Private Banking

The Philippines
Bank of Philippine Islands

• Institutional sales team

• DBS Asset Management

Institutional Fund Managers

• IPO placements
• Cash management
• Equity-linked instruments
• FX, Derivatives
• Fixed income
• Research

Corporate

• Equity cap mkts
• Debt cap mkts
• MA
• Private equity
• FX, Derivatives
• Research

• DBS Vickers

• DBS Bank