Filed by Franklin Resources, Inc. Pursuant
to Rule 425 under the Securities Act of 1933
Commission File No.: 1-9318
Subject Company: Fiduciary Trust Company International
On October 25, 2000, Franklin Resources, Inc. and Fiduciary Trust Company
International held a meeting for the investment community to discuss the
acquisition by Franklin Resources, Inc. of Fiduciary Trust Company
International. A copy of the slides shown at the meeting and available in
connection with the internet webcast follows.
[Franklin Templeton Investments Logo] [Fiduciary Trust International Logo]
"BUILDING THE PREMIER GLOBAL
INVESTMENT MANAGER"
OCTOBER 25, 2000
NY2:\976301\02\kxbh02!.DOC\46360.0043
<PAGE>
FORWARD-LOOKING STATEMENTS
--------------------------------------------------------------------------------
Statements in this presentation regarding Franklin Resources, Inc.'s acquisition
of Fiduciary Trust Company International which are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve a number
of risks, uncertainties and other important factors that could cause the actual
results and outcomes to differ materially from any future results or outcomes
expressed or implied by such forward-looking statements. Such risks,
uncertainties and other important factors include: the ability to obtain
governmental approvals of the share exchange on the proposed terms and schedule;
the failure of Fiduciary Trust Company International's shareholders to approve
the share exchange; the risk that the businesses will not be integrated
successfully; the risk that the revenue synergies and cost savings from the
transaction may not be fully realized or may take longer to realize than
expected; disruption from the transaction making it more difficult for each
company to maintain relationships with clients or employees; increased
competition; the risks of new and changing regulation in the U.S. and
internationally; and other risk factors described in Franklin's recent filings
with the U.S. Securities and Exchange Commission.
1
<PAGE>
TRANSACTION SUMMARY
--------------------------------------------------------------------------------
- Tax-free, all stock transaction using pooling of interests accounting
- Purchase price of approximately $113.38 per share or $825 million
} Floating exchange ratio between 2.6752 and 3.2697 shares of
Franklin stock for each Fiduciary share
} Exchange ratio will be determined based on an average price
formula of Franklin stock shortly before closing
} 19.9% share option to Franklin
- Expected closing in 1st Quarter 2001
- Employment contracts with select senior executives
- $85 million cash and stock option retention pool established for all
employees
- Inside directors have agreed to vote their shares in favor of the
transaction
2
<PAGE>
STRATEGIC RATIONALE
--------------------------------------------------------------------------------
Franklin + Fiduciary Trust: Enhanced Value Through Acceleration of Growth
- Balances business mix, deepens scale in key investment styles, regions,
customer segments
} Combined AUM of $280 billion across all asset classes and
style spectrum Domestic to International, Value to Growth
} #1 tax-exempt fixed income manager teamed with an
institutional global fixed income leader
- Positions company to capture and keep strong growth in high net worth
business
} Access to triple-digit growth in pentamillionaire market
} Leverages Fiduciary's track record of more than 99% retention
of HNW client assets
} Expands Fiduciary's franchise domestically and internationally
in one of the fastest growing asset management segments
- Nearly doubles Franklin's institutional assets and adds 1,000 family
relationships across many markets
} Combined company's institutional assets create a compelling
mix of DB and DC, Franklin's infrastructure and Fiduciary's
client base
- Accelerates Franklin's long term growth rate driven by significant
franchise synergies
- Franklin will offer Fiduciary products in the retail market
- Leverage and enhance global reach of both companies
} Offices in more than 25 countries
3
<PAGE>
WHO IS FIDUCIARY?
--------------------------------------------------------------------------------
- One of the oldest independent pure trust and investment management
firms
} Founded in 1931 in New York
- Excellent long-term investment and financial performance
- Global presence since early 1960's
} Today, more than 700 people in 13 offices worldwide
- Clients include nearly 500 institutions and more than 1,000 families
- Long recognized for excellence in growth-oriented, separately managed
accounts
- Provides full range of wealth management services to affluent
individuals and their families across generations
} Investment Management } Custody/Administration
} Trust/Estate Planning } Private Banking
} Tax Planning
4
<PAGE>
FRANKLIN + FIDUCIARY TRUST: A POWERFUL COMBINATION
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
KEY CLIENT SEGMENTS
FIDUCIARY
FRANKLIN TRUST COMBINED
-------- ----- --------
<S> <C> <C> <C>
Retail Mutual Funds X X
High Net Worth X X
Institutional
- Defined Benefit X X X
- Defined Contribution X X
- Endowment X X
- Foundation X X
</TABLE>
5
<PAGE>
SIGNIFICANT INTERNATIONAL MARKETS -
COMBINED COMPANY WELL-POSITIONED
--------------------------------------------------------------------------------
[BAR CHART]
<TABLE>
<CAPTION>
EXPECTED GROWTH
MARKET AUM IN NEXT 3-5 YEARS
COUNTRY Percent; $ Billions Percent CAGR
------- ----------------------------------------------------- -----------------------------------------------
<S> <C> <C>
Retail Institutional Retail Institutional
Japan 16% 84% $2,450 15-20% 10-15%
U.K. 21% 79% $1,430 greater than 20% 10-15%
Canada 29% 71% $650 greater than 20% 10-15%
Germany 36% 64% $610 15-20% greater than 20%
France 69% 31% $590 5-10% greater than 20%
Italy 84% $500 greater than 20% greater than 20%
Netherlands 82% $500 10-15% 5-10%
Switzerland 83% $350 5-10% 5-10%
Spain 89% $270 greater than 20% 15-20%
Australia 77% $220 5-10% 10-15%
</TABLE>
Notes:
Source McKinsey & Co.
6
<PAGE>
STRONG INTERNATIONAL PRESENCE
--------------------------------------------------------------------------------
[World Map]
Map of the world indicating the locations of Franklin and Fiduciary Trust
including:
CANADA LATIN AMERICA
------ -------------
Calgary Buenos Aires, Brazil
Edmonton Caracas, Venezuela
Montreal Nassau, Bahamas
Toronto Rio de Janeiro, Brazil
Vancouver Sao Paulo, Brazil
U.S. EUROPE
---- ------
Carmel, CA Amsterdam, Netherlands
Fort Lee, NJ Brussels, Belgium
Ft. Lauderdale, FL Dublin, Ireland
Los Angeles, CA Ediburgh, UK
Miami, FL Frankfurt, Germany
New York, NY Geneva, Switzerland
Rancho Cordova, CA London, UK
Salt Lake City, UT Luxembourg, Belgium
San Mateo, CA Madrid, Spain
Short Hills, NJ Milan, Italy
St. Petersburg, FL Moscow, Russia
Washington D.C. Paris, France
Wilmington, DE Stockholm, Sweden
Warsaw, Poland
Zurich, Switzerland
MIDDLE EAST/ASIA/AUSTRALIA/AFRICA
---------------------------------
Abu Dhabi, UAE
Bangalore, India
Beijing, China
Bombay, India
Calcutta, India
Hong, Kong, China
Johannesburg
Madras, India
Melbourne, Australia
New Delhi, India
Pune, India
Seoul, South Korea
Shanghai, China
Singapore, Singapore
Taipei, Taiwan
Tokyo, Japan
7
<PAGE>
FRANKLIN + FIDUCIARY TRUST: A POWERFUL COMBINATION
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
KEY REGIONS
------------------------------------------------------------------------------------------
FRANKLIN FIDUCIARY TRUST COMBINED
----------------------------- ------------------------ --------------------------
RETAIL DB DC RETAIL DB DC RETAIL DB DC
------ -- -- ------ -- -- ------ -- --
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. X X X X X X X
Canada X X X X X X X
United Kingdom Europe X X X X X
- Switzerland X X X X
- Italy X X X X
- France X X X X
- Germany X X X X
Japan X X X X
Non-Japan Asia X X X X X X
Middle East X X X X X
Australia/New Zealand X X X X X X X
</TABLE>
8
<PAGE>
FRANKLIN + FIDUCIARY TRUST: A POWERFUL COMBINATION
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
KEY EQUITY INVESTMENT CAPABILITIES
FIDUCIARY
FRANKLIN TRUST COMBINED
-------- ----- --------
<S> <C> <C> <C>
Value X X
Growth X X X
Core X X
International X X X
European X X X
Asian X X X
Emerging Markets X X
Sector Funds X X
Alternative Investments X X
</TABLE>
9
<PAGE>
FRANKLIN + FIDUCIARY TRUST: A POWERFUL COMBINATION
--------------------------------------------------------------------------------
- Franklin is the #1 provider of tax-free municipal bond funds, and
together with its broader fixed income strengths, has more than $64
billion in fixed income assets under management
} Superior risk-adjusted returns
} Vast majority of funds are ranked 4 or 5 stars by Morningstar
- Fiduciary is a leading provider of global, international, U.S. core and
opportunistic fixed income portfolios for institutions and high net
worth individuals around the world
} $22 billion in fixed income AUM
The combined company will have $86 billion in fixed income AUM and a complete
array of fixed income capabilities, both in products and distribution strengths
10
<PAGE>
THE OPPORTUNITY
--------------------------------------------------------------------------------
Fiduciary Trust provides Franklin with a strong presence in the
fast-growing and profitable high net worth segment
[BAR CHART]
<TABLE>
<CAPTION>
Growth in HNW Assets Revenue Opportunity
($ in trillions) ($ in billions)
<S> <C> <C>
1999 $25.5 2001 Projected $25.5
2004 Projected $44.9 2004 Projected $45.0
</TABLE>
11
<PAGE>
The Opportunity
--------------------------------------------------------------------------------
Fiduciary Trust provides Franklin with a strong presence in the
fast-growing and profitable high net worth segment
[BAR CHART]
<TABLE>
<S> <C>
Growth in Fiduciary's HNW Assets
($ in billions)
1990 $3.7 - Fiduciary provides a solutions-oriented
1995 $6.2 service for wealthy families, integrating
Sep-00 $14.0 investment management, tax, trust and
estate planning in a service called Family
Clients include more than Resource Management TM
1,000 wealthy families
- Professionals dedicated to tax-aware
Average Account Size of transference of wealth across generations
$12mm
- Strong professional relationships with
key family intermediaries (lawyers,
accountants, etc.)
- Fiduciary's private client relationships
have been important to gaining access to
many important institutions world-wide
</TABLE>
12
<PAGE>
REPRESENTATIVE INSTITUTIONAL CLIENTS
--------------------------------------------------------------------------------
Fiduciary Trust
--------------------------------------------------------------------------------
- California State Teachers and Employee
Retirement Systems
U.S. - Metropolitan Museum of Art
- Northup-Grumman
- Princeton University
--------------------------------------------------------------------------------
- McGill University
Canada - Alcan, Inc.
- Bombardier, Inc.
--------------------------------------------------------------------------------
- Pirelli
Europe - Bank Austria
- Canton of Vaud, Switzerland
--------------------------------------------------------------------------------
- Australia Post
Australia/ - Armstrong Jones
New Zealand
--------------------------------------------------------------------------------
- Hong Kong Jockey Club
Asia - Nippon Steel
- Cathay Pacific
13
<PAGE>
STRENGTH IN INSTITUTIONAL ASSETS
--------------------------------------------------------------------------------
[BAR GRAPH]
$Billions
1993 $9.3
1997 $35.5
Sep-00 $51.6
Franklin $51.6
Fiduciary $36.7
Total $88.3
The combined company's institutional assets create a compelling mix of
institutional mandates, including DB and DC, Franklin's infrastructure and
Fiduciary's client base
14
<PAGE>
FIDUCIARY TRUST - PERFORMANCE
--------------------------------------------------------------------------------
- A record of growth and profitability
[BAR GRAPH]
<TABLE>
<S> <C>
EBITDA ($ in millions) Total Revenues ($ in millions)
1997 $36.6 1997 $144.3
1998 $41.9 1998 $157.1
1998 $50.4 1999 $171.2
Sep-00(1) $59.4 Sep-00(1) $197.7
[ARROW GRAPHIC] CAGR = 19.3% [ARROW GRAPHIC] CAGR = 12.1%
Earnings per Share
1997 $2.06
1998 $2.41
1999 $2.72
Sep-00(1) $3.05
[ARROW GRAPHIC] CAGR = 15.3%
</TABLE>
Notes:
(1) First nine months annualized.
15
<PAGE>
PRO FORMA FINANCIAL PROFILE
--------------------------------------------------------------------------------
FRANKLIN FIDUCIARY COMBINED
-------- --------- --------
($ in millions)
2000 EBITDA(1) $880 $59 $939
2000 Net Income(1) 562 22 584
Tangible Equity 1,793 98 1,891
Assets Under Management 230 50 280
Retail Mutual Funds 178 NM 178
Institutional 52 37 89
High Net Worth NM 13 13
Notes:
(1) Based on September 30 fiscal year-end data for Franklin; nine months
annualized data for Fiduciary.
16
<PAGE>
OPERATIONAL LEVERAGE
--------------------------------------------------------------------------------
- Analysis by both management teams has identified the following
near-term synergies:
} Technology Enhancements $18.4M
} ESOP Amortization 14.3M
} Other Operating Expenses 13.6M
-----
$46.3M
- We would expect to fully achieve these cost synergies by end of year 2.
As a result, transaction is expected to be moderately accretive in year
2, excluding impact of retention pool
- Substantial revenue enhancement opportunities not included in base
financial analysis
17
<PAGE>
IMPLEMENTATION
--------------------------------------------------------------------------------
- Fiduciary will be a separate subsidiary of Franklin and
retain its brand; headquarters to remain in New York
- Current Fiduciary Board and its management remain
intact. We expect to add two Franklin representatives to
the Board
- Anne Tatlock will continue as CEO of Fiduciary, reporting
to Franklin's CEO. She will join Franklin's Board and the
Office of the Chairman
- Joint Integration Committee will be established and
include senior members of both management teams
18
<PAGE>
SUMMARY
--------------------------------------------------------------------------------
Franklin + Fiduciary Trust: Enhanced Value Through Acceleration of Growth
- Balances business mix, deepens scale in key investment styles, regions,
customer segments
} Combined AUM of $280 billion across all asset classes and
style spectrum - Domestic to International, Value to Growth
} #1 tax-exempt fixed income manager teamed with an
institutional global fixed income leader
- Positions company to capture and keep strong growth in high net worth
business
} Access to triple-digit growth in pentamillionaire market
} Leverages Fiduciary's track record of more than 99% retention
of HNW client assets
} Expands Fiduciary's franchise domestically and internationally
in one of the fastest growing asset management segments
- Nearly doubles Franklin's institutional assets and adds 1,000 family
relationships across many markets
} Combined company's institutional assets create a compelling
mix of DB and DC, Franklin's infrastructure and Fiduciary's
client base
- Accelerates Franklin's long term growth rate driven by significant
franchise synergies
- Franklin will offer Fiduciary products in the retail market
- Leverage and enhance global reach of both companies
} Offices in more than 25 countries
19
<PAGE>
[Franklin Templeton Investments Logo] [Fiduciary Trust International Logo]
"BUILDING THE PREMIER GLOBAL
INVESTMENT MANAGER"
OCTOBER 25, 2000
20
<PAGE>
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
It is expected that Franklin Resources will file a registration statement and
other relevant documents concerning the proposed transaction with the U.S.
Securities and Exchange Commission and will mail a prospectus to shareholders of
Fiduciary Trust Company International. FIDUCIARY TRUST COMPANY INTERNATIONAL
SHAREHOLDERS ARE URGED TO READ THE PROSPECTUS AND THE REGISTRATION STATEMENT
WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION REGARDING THE PROPOSED TRANSACTION. Investors will be able to obtain
these documents free of charge at the Commission's web site at www.sec.gov or
from Franklin by directing such requests to Investor Relations, Franklin
Resources, Inc., 777 Mariners Island Blvd., San Mateo, CA 94409, (tel:
1-800-632-2350 x28900).
21
