ING Direct 2009 Annual Report Download - page 165

Most significant companies acquired in 2007
Oyak Bank
Sharebuilder
Corporation Landmark
Latin American
Pension business of
Santander Total
General
Primary line of business Bank Bank Insurance Insurance
Date of acquisition 31 December 2007 15 November 2007 31 July 2007 4 December 2007
Percentage of voting shares acquired 100% 100% 100% 100%
Purchase price
Purchase price 1,903 152 255 692 3,002
Costs directly attributable to the acquisition 212813
Cash purchase price 1,905 153 257 700 3,015
Cash in company acquired 75 12 29 28 144
Cash outflow on acquisition (2) 1,830 141 228 672 2,871
Assets
Cash assets 75 12 29 28 144
Investments 1,332 86 1,418
Loans and advances to customers 4,824 15 4,839
Amounts due from banks 508 508
Financial assets at fair value through profit
and loss 41 2520 563
Intangible assets 236 154 390
Miscellaneous other assets 474 80 18 85 657
Liabilities
Insurance and investment contracts 500 500
Amounts due to banks 632 632
Customer deposits and other funds on deposit 5,369 5,369
Miscellaneous other liabilities 601 51 182 834
Net assets 888 58 47 191 1,184
Minority interests
Total net assets acquired 888 58 47 191 1,184
Goodwill recognised (1) 1,015 94 208 501 1,818
Profit since date of acquisition –1 188
Income if acquisition effected at start of year 38 15 209 262
Profit if acquisition effected at start of year (3) 80 –2 446 128
(1) Goodwill recognised in 2007 on immaterial acquisitions and real estate portfolios was EUR 222 million, resulting in total Goodwill recognised in 2007 of
EUR 2,040 million as disclosed in Note 9 ‘Intangible assets’.
(2) Cash outflow/inflow on group companies in the cash flow statement includes cash outflows/inflows on individually immaterial acquisitions and real estate
portfolios in addition to the cash flows presented herein.
(3) Estimate of full year profit of acquired company based on local accounting principles.
Acquisitions effective in 2007
In September 2007, ING paid EUR 20 million to increase its shareholding in ING Piraeus Life (the joint venture between ING and Piraeus
Bank) from 50 to 100%.
In April 2007, ING acquired 100% of AZL, an independent Dutch provider of pension fund management services, for EUR 65 million.
In July 2007, ING announced that it had reached agreement to acquire full ownership of Landmark Investment Co Ltd, the twelfth largest
asset manager in South Korea. The purchase price paid for Landmark was EUR 255 million. Goodwill of approximately EUR 208 million was
recognised on acquisition and is mainly attributable to the operational synergies and to the future business potential resulting from the
acquisition. There was no significant difference in the carrying values of the net assets acquired immediately before the acquisition and
their fair values. All significant intangibles were recognised separately from goodwill and are included in Intangible assets. No significant
adjustments were made in 2008 to amounts recognised provisionally in 2007.
Additional information to the consolidated balance sheet of ING Group (continued)
2.1 Consolidated annual accounts
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