Great Places to Work & Acquisition Impact
The combination delivers compelling financial metrics
Creates significant
synergies
•
Provides attractive
returns and
meaningful EPS
accretion
•
2027E Operating Expense Synergy Opportunity: $1.3B
•
2027E Marketing Expense Synergy Opportunity: $0.1B
2027E Network Synergy Opportunity: $1.2B
•
2027E Adjusted EPS Accretion¹: >15%
2027E ROIC²: 16%
•
IRR³: >20%
•
Bolsters an already
strong balance sheet
Pro Forma CET1 ratio at close: ~14%
•
2023 Pro Forma Insured Deposits: 84%
Note: Market data as of February 16, 2024; Metrics reflect 100% stock consideration at a 1.0192x exchange ratio, representing a 26.6% premium to Discover share price; 1) Adjusted EPS accretion is a non-GAAP measure that excludes expected
acquisition and integration expenses, amortization of intangible assets and amortization of loan credit marks and fair value marks; 2) Return on invested capital represents Discover synergized Adjusted Non-GAAP net income after taxes divided by deal
value less Discover excess capital at close (above 12.5%) plus incremental capital required for growth; 3) IRR terminal value assumes 9.0x NTM P/E; 4) As of December 31, 2023
LO
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