-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
1/36
ALKF A\L ADFDGLNEL-RKF\KQDMN MB JKYUCKFF " DFUFLT IKN@
ALI UKCMM& JIK& YMUU UECMMF MB I\UDNLUU& \NDRLYUDQT MB JDECDGKN& KNN KYIMY
Aleljilr ?2& 9?;?
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
2/36
QKIFLMBEMNQLN
QULxleutdvl Uujjkry
Emjpkny Unkpscmt
Aul Adfdglnel
Ikn` Rkfuktdmn
Ylemjjlnaktdmns
Alkf dn tcl Nlws
5
2
3
97
5;
51
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
3/36
LSLE\QDRL U\JJKYT
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
4/36
IKE@GYM\NA
Ike`grmuna Aul Adfdglnel bmr Utlvls Ymsss Ikn` Kequdsdtdmn Lbbmrt #Iusdnlss wll`& Aleljilr& 9??4$
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
5/36
LSL
E\QDRLU\JJ
KYT
QKYGLQ 8 Jkrsckff " Dfsfly
Amjdnknt ikn`dng brknecdsl dn kttrketdvl upplr*Jdawlst jkr`lt
Cdgc*qukfdty jknkgljlnt kna strmng brknecdsl& wdtc stkifl YMLkvlrkgdng ;2, brmj 9???*9??7
Utkifl iksl mb fmw*emst alpmsdts& wdtc 5?, sckrl dn Jdfwku`ll&kna tmp < sckrl dn dts tmp < jkr`lts
Ksslt Jknkgljlnt advdsdmn #!55I K\J$ glnlrktdng stkifl prmbdtskna ermss*slffdng mppmrtundtdls
Cdstmry mb sueelssbuf kequdsdtdmns #9; sdnel ;434$
_rlslnel dn brkgjlntla kna grmwdng Jdnnlkpmfds jkr`lt. Mptdmntm kggrlssdvlfy lxpkna
Bunakjlntkffy unalrvkfula& kt ?.7S QIR kna 7S nmrjkfdzlalkrndngs
EMJ_KNT KNA UQME@ DNBMYJKQDMN
C[ Fmektdmn
77? Nmrtc Wktlr Utrllt
Jdfwku`ll& WD
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
6/36
EMJ_KNT UNK_UCMQ
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
7/36
EMJ_KNTUNK_UCMQ
Glmgrkpcde _rlslnel kna Ikn`dng _mrtbmfdm
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
8/36
A\L ADFDGLNEL
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
9/36
A\
LADFDGLNEL
Aul adfdglnel sujjkry
Erladt Yds` kna Alpmsdt Jdx @ly _mdnts
Fmw Erladt Yds`
Bkvmrkifl glmgrkpcde jdx
Fdjdtla lxpmsurl tm cdgc rds` imrrmwlrs
Utlkay djprmvljlnts dn N_F
Advlrsl alpmsdt jdx
Fkrgl alpmsdt iksl
Qrlnadng kwky brmj tdjl alpmsdts tmwkra jmrl stkifl aljkna alpmsdts
Ylbmeusdng mn strlngtcs
;3, Dnerlksl dn Emjjlredkf Ylkf Lstktl Flnadng
1?, Alerlksl dn Emnstruetdmn kna Alvlfmpjlnt Flnadng
Qmp 9? rlfktdmnscdps mnfy keemunt bmr
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
10/36
A\LADFDGLNEL
Emnelntrktla prlslnel dn cdgc*ljpfmyjlnt stktls
\nljpfmyjlnt #nmt slksmnkffy kahustla$
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
11/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * Qmtkf Fmkn _mrtbmfdm
QMQKF FMKNU kt Ulpt& 9?;?8 !54.7I
FMKNU IT KUULQ EFKUU FMKNU IT GLMGYK_CT
Utrlssla KX " BF fmkn pmrtbmfdm& emjpkny bmeusdng mn rlturn tm emrl Jdawlstlrn jkr`lt
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
12/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * Fmkn Emnelntrktdmn kna Eckngl dn N_F
Qmp 9? rlfktdmnscdps mnfy keemunt bmr
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
13/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * N_F _mrtbmfdm
QMQKF NMN _LYBMYJDNG FMKNU kt Ulpt& 9?;?8 !;.2I
N_F IT KUULQ EFKUU N_F IT GLMGYK_CT
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
14/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * 2 Jmntc Qrlnas dn Fmkn _mrtbmfdm
;3, Dnerlksl dn Emjjlredkf Ylkf Lstktl Flnadng
1?, Alerlksl dn Emnstruetdmn kna Alvlfmpjlnt Flnadng
?,
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
15/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * Utlkay Djprmvljlnts dn N_F
Dnbfmws mb nmn plrbmrjdng fmkns stkidfdzdng _lrelntkgl mb Nmn*plrbmrjdng fmkns alerlksdng
Fmkn fmss rlslrvls rlkecdng kalquktl flvlfs
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
16/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * Emnstruetdmn kna Alvlfmpjlnt #E"A$ Lxpmsurl
Emnstruetdmn kna Alvlfmpjlnt #E"A$ Fmkn _mrtbmfdm scrdn`dng
Qmtkf E"A Fmkn : !5.2I #4.;, mb tmtkf fmkns$
Qmtkf E"A Nmn plrbmrjdng fmkns : !
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
17/36
A\LADFDGLNEL
Erladt Yds` _rmbdfl * Emjjlredkf Ylkf Lstktl Fmkns Lxpmsurl
EYL Fmkn mb !;5I #55, mb tmtkf fmkn$
1?, mb emjjlredkf rlkf lstktl krl mwnlr meeupdla
EYL Nmn plrbmrjdng fmkns jk`l up ~5?, mb N_Fs #!135JJ$
QMQKF EYL FMKNU8 !;5I NMN _LYBMYJDNG EYL FMKNU8 !135J
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
18/36
A\LADFDGLNEL
Ikn` Alpmsdt Jdx
Bunadng Jdx Utrlngtclns Ikfknel Ucllt
Umfda Alpmsdt Grmwtc& Alerlksl dn Qdjl Alpmsdts #Cmt Jmnly$
Fmkns tm Alpmsdt Yktdm amwn brmj ;59 , tm ;?1, dn hust mvlr twm ylkrs
Grmwtc Rs. _rdmr Tlkr Fmkns-Alpmsdts
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
19/36
A\LADFDGLNEL
Emjpmsdtdmn mb JDs Emnsmfdaktla Kvlrkgl Alpmsdts #9??3 *9??4$
Mvlrkff dnerlksl mb !;.2 idffdmn mr k 5.1, mb erladt ikfknelsNmn Dntlrlst Ikfknels kna Dntlrlst Ikfknels dnerlksla iy 92.3, kna
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
20/36
A\LADFDGLNEL
Ylvlnul Jdx
Nmn*Dntlrlst kna Bll Dnemjl Jdx
Kidfdty tm glnlrktl dnemjl alspdtl eckfflngdng lnvdrmnjlnt
Bll Dnemjl ds ardvln iy Wlkftc Jknkgljlnt Iusdnlss #Nmt djpketla iy Bdnknedkf Ylgufktdmns$
Qmtkf Ylvlnul #9??1 9??4$ 4-?4 TQA 4-;? TQA Ylvlnul Grmwtc
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
21/36
A\LADFDGLNEL
Nlt Dntlrlst Jkrgdn
Kidfdty tm glnlrktl dnemjl alspdtl eckfflngdng lnvdrmnjlnt Ucdbt dn kvlrkgl alpmsdt jdx rlsuftla mn k pmsdtdvl djpket mn nlt dntlrlst jkrgdn
Glnlrkf lemnmjde emnadtdmns kbbletla nlt dntlrlst jkrgdns
Nlt Dntlrlst Jkrgdn #5[?3 5[;?$
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
22/36
A\LADFDGLNEL
Lxplnsl Emjpkrdsmn
Mnl mb tcl jmst lxplnsl adsedpfdnla ikn`s dn tcl dnaustry
Nmn Dntlrlst Lxplnsl- Kvlrkgl Ksslts #4-;? QTA$ _LLY IKN@U
KUIE8 Kssmedktla Ikne Emrp
JQI8 J"Q Ikn` Emrp.
EJK8 Emjlrdek Dne.
CIKN8 Cuntdngtmn Ikn`sckrls Dne.
UNR8 Uynmvus Bdnknedkf Emrp.@LT8 @ly Emrp.
XDMN8 Xdmns Iknemrpmrktdmn
UQD8 UunQrust Ikn`
BDQI8 Bdbtc Qcdra Ikn`emrp
IIQ8 II"Q Emrp.
YB8 Ylgdmns Bdnknedkf Emrp.
BCN8 Bdrst Cmrdzmn Nktdmnkf Emrp.
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
23/36
A\LADFDGLNEL
_llr Flkadng Qkngdifl Emjjmn Lqudty #QEL$ Yktdm
Bunadng Jdx Utrmng QEL-QK rktdm kjmngst pllrs.Qdlr ; rlgufktmry ekpdtkf rktdm wks ;;.;;, mr !9.
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
24/36
A\L
ADFDGLNEL
Qdlr*D Ekpdtkf
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
25/36
A\L
ADFDGLNEL
Emjplnsktdmn Uujjkry
J"D Lxleutdvls \nalrpkda Ylfktdvl _llrs Ilekusl mb QKY_ Mvlrckng
Nkjl Qdtfl
9??2
#\UA$
9??7
#\UA$
9??3
#\UA$
9??4
#\UA$ Emjjlnts
Grldg& _kuf Lxleutdvl Eckdrjkn& Ecdlb Lxleutdvl
Mbbdelr& _rlsdalnt& Jljilr mb Lxleutdvl
Emjjdttll& Eckdrjkn mb BdrstJlrdt Ikn`
N K& Ecdlb Lxleutdvl Mbbdelr mb BdrstJlrdt
Ikn` N K kna _rlsdalnt mb BdrstJlrdtIkn` N K
;&?91&;24 ;&7;?&393 ;&7;2&32; ;&?41&551 _kda ike` QKY_ dn '?4
Ks Ylpmrtla Qmtkf
emjplnsktdmn
9&9?
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
26/36
A\L
ADFDGLNEL
Emjplnsktdmn Uujjkry
Nkjl Qdtfl 9??2 #\UA$ 9??7 #\UA$ 9??3 #\UA$ 9??4 #\UA$ EmjjlntsBurfmng& Jkr` B. Eckdrjkn& Ecdlb Lxleutdvl Mbbdelr&
_rlsdalnt& Eckdrjkn mb J"D
Jkrsckff " Dfsfly Ikn`& Ecdlb
Lxleutdvl Mbbdelr mb J"D Jkrsckff "
Dfsfly Ikn`& Rdel _rlsdalnt mb J"D
Ekpdtkf Jkr`lts Grmup FFE&
Qrlksurlr mb J"D Ekpdtkf Jkr`lts
Grmup FFE& Adrletmr mb J"D EkpdtkfJkr`lts Grmup FFE kna Adrletmr mb
Jkrsckff " Dfsfly Qrust Emjpkny
;&531&3?? ;&?22&372 37
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
27/36
IKN@ RKF\KQDMN
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
28/36
IKN
@RKF\KQDMN
Dnaustry Emjpkrkifls
_rdel-Imm` nlkr tcl fmwlst( dn tcl pllr grmup jk`dng dt kn kttrketdvl tkrglt
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
29/36
IKN
@RKF\KQDMN
Utme` _rdels mb Dnaustry Emjpkrkifls
Qkrp mvlrckng kna blkr mb dnerlksla ksslt wrdtl amwns alprlssdng stme` prdel_rlssurl tm glnlrktl ilttlr rlturns bmr Uckrlcmfalrs
?
9?
1?
2?
3?
;??
;9?
;9-1-9?
?7
9-1-9?
?3
1-1-9?
?3
2-1-9?
?3
3-1-9?
?3
;?-1-9?
?3
;9-1-9?
?3
9-1-9?
?4
1-1-9?
?4
2-1-9?
?4
3-1-9?
?4
;?-1-9?
?4
;9-1-9?
?4
9-1-9?
;?
1-1-9?
;?
2-1-9?
;?
3-1-9?
;?
;?-1-9?
;?
NTUL8JD * Uckrl _rdedng NksakqGU8XDMN * Uckrl _rdedng
NTUL8ETN * Uckrl _rdedng NksakqGU8KUIE * Uckrl _rdedng
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
30/36
IKN
@RKF\KQDMN
Alkf Utrueturl
Alkf strueturla ks k prdvktl _fkeljlnt mb !9.9 IQcl dnbusdmn mb !9.9 I wdff gm tmwkras rlpkydng QKY_ kna djprmvdng ekpdtkf kalqukey
_rmpmsla _rdvktl _fkeljlnt wdff kffmw J"D tm jllt Ikslf DDD ekpdtkf rlqudrljlnts wdtcmutfmsdng alblrrla tkx ksslts
Yds` mb burtclr altlrdmrktdmn mb ekpdtkf jkr`lts emufa djpket fdqudadty
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
31/36
YLEMJJLNAKQDMNU
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
32/36
YLEMJJLNAKQDMNU
Yds` " Jdtdgktdmn
YDU@U
Dnerlksla wrdtl amwns aul tm rlkf lstktl lxpmsurl
Jkerm lemnmjde emnadtdmns
_rmbdtkidfdty emnstrkdnts rlfktla tm eckngls dn bdnknedkf rlgufktdmn
Bkdfurl tm kecdlvl rlgufktmr kpprmvkf mn alkf
Burtclr altlrdmrktdmn dn Qdlr ; ksslt rktdm
JDQDGKQDMN
Aul adfdglnel allp advl dntm fmkn pmrtbmfdm
Jmalf pmtlntdkf gkdns rlsuftdng brmj UHI synlrgdls rlfktla tm rlkf lstktl
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
33/36
YLEMJJLNAKQDMNU
Ylkfdgn Iusdnlss Jmalf * Bmeus mn Emnsujlr kna Iusdnlss Ulgjlnt
I\UDNLUU*tm*I\UDNLUU #I9I$Dnerlksl prdedng kna lbbdedlney dn slflet rlgdmns
Ylalbdnl kppltdtl bmr emjjlredkf rlkf lstktl
I\UDNLUU*tm*EMNU\JLY #I9E$
Qkrglt jkss kbbfulnt kna kbbfulnt eustmjlrs bmr jmrl emjpfltl rlfktdmnscdp
Bmeus jkss ikn`dng lbbmrts dn Wdsemnsdn kna Dnadknkpmfds
BT 9??2 BT 9??7 BT 9??3 BT 9??4 [; 9?;? [9 9?;? [5 ;? [1 ;? BT 9?;? BT 9?;; BT 9?;9
Mplrktdng Lbbdedlney
Yktdm
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
34/36
ALKF DN QCL NLWU
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
35/36
ALK
FDNQCLNLWU
J"D Alkf Knnmunela
Kequdsdtdmn mb J"D iy IJM wks knnmunela mn Ale ;7 & 9?;?
-
7/28/2019 Deal Due Diligence and Valuation of Marshall Ilsley Bank
36/36
ALK
FDNQCLNLWU
J"D Alkf Emjpfltla
J"D Bdnkffy Hmdnla tcl IJM Bkjdfy dn Hufy 9?;;