<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 10, 1997
H. F. Ahmanson & Company
-------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 1-8930 95-0479700
--------------- ------------ -------------------
(State of other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
4900 Rivergrade Road, Irwindale, California 91706
------------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (818) 960-6311
---------------
Not applicable
------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
On March 10, 1997, Charles R. Rinehart, Chairman and Chief Executive
Officer, and Kevin M. Twomey, Senior Executive Vice President and Chief
Financial Officer, of H.F. Ahmanson & Company (the "Registrant"), gave a
presentation for analysts and investors relating to the Registrant's proposal
(announced on February 18, 1997) for a tax-free merger of the Registrant and
Great Western Financial Corporation, a Delaware Corporation ("GWF"), pursuant to
which each outstanding share of common stock of GWF would be converted into 1.05
shares of common stock of the Registrant, and a competing proposal for a merger
of Washington Mutual, Inc., a Washington Corporation ("WAMU"), with GWF.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Investor presentation materials used by the Registrant at a
presentation for analysts and investors which took place on March 10,
1997 relating to the Ahmanson Proposal (In the investor presentation,
the Registrant is sometimes referred to by its stock exchange ticker
symbol, "AHM").
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: March 10, 1997
H. F. AHMANSON & COMPANY
/s/ Madeleine A. Kleiner
-------------------------------
Madeleine A. Kleiner
Senior Executive Vice President
and General Counsel
<PAGE>
EXHIBIT 99.1
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
WE RESPECTFULLY DISAGREE:
THE NUMBERS JUST DON'T COMPUTE
CHARLES R. RINEHART
AND
KEVIN M. TWOMEY
H. F. AHMANSON & COMPANY
MARCH 10, 1997
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] CAUTIONARY STATEMENT OF AMERICA]
- --------------------------------------------------------------------------------
THIS PRESENTATION AND THE ACCOMPANYING SLIDES CONTAIN CERTAIN FORWARD
LOOKING STATEMENTS WITH RESPECT TO THE FINANCIAL CONDITION, RESULTS OF
OPERATIONS AND BUSINESS OF AHMANSON AND, ASSUMING THE CONSUMMATION OF THE
PROPOSED MERGER, A COMBINED AHMANSON/GREAT WESTERN FINANCIAL CORPORATION,
INCLUDING STATEMENTS RELATING TO: (A) THE COST SAVINGS AND ACCRETION TO CASH
EARNINGS AND REPORTED EARNINGS THAT WILL BE REALIZED FROM THE PROPOSED MERGER;
(B) THE IMPACT ON REVENUES OF THE PROPOSED MERGER, INCLUDING THE POTENTIAL FOR
ENHANCED REVENUES AND THE IMPACT ON REVENUES OF CONSOLIDATION OF RETAIL BRANCHES
AND OTHER OPERATIONS AS PLANNED; (C) AHMANSON'S STOCK PURCHASE PROGRAM; AND (D)
THE RESTRUCTURING CHARGES EXPECTED TO BE INCURRED IN CONNECTION WITH THE
PROPOSED MERGER. THESE FORWARD LOOKING STATEMENTS INVOLVE CERTAIN RISKS AND
UNCERTAINTIES. FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE CONTEMPLATED BY SUCH FORWARD LOOKING STATEMENTS INCLUDE, AMONG OTHERS, THE
FOLLOWING POSSIBILITIES: (1) EXPECTED COST SAVINGS FROM THE PROPOSED MERGER
CANNOT BE FULLY REALIZED OR REALIZED WITHIN THE EXPECTED TIME FRAME; (2)
REVENUES FOLLOWING THE PROPOSED MERGER ARE LOWER THAN EXPECTED; (3) COMPETITIVE
PRESSURE AMONG DEPOSITORY INSTITUTIONS INCREASES SIGNIFICANTLY; (4) COSTS OR
DIFFICULTIES RELATED TO THE INTEGRATION OF THE BUSINESSES OF AHMANSON AND GREAT
WESTERN FINANCIAL CORPORATION ARE GREATER THAN EXPECTED; (5) CHANGES IN THE
INTEREST RATE ENVIRONMENT REDUCE INTEREST MARGINS; (6) GENERAL ECONOMIC
CONDITIONS, EITHER NATIONALLY OR IN THE STATES IN WHICH THE COMBINED COMPANY
WILL BE DOING BUSINESS, ARE LESS FAVORABLE THAN EXPECTED; OR (7) LEGISLATION OR
REGULATORY CHANGES ADVERSELY AFFECT THE BUSINESSES IN WHICH THE COMBINED COMPANY
WOULD BE ENGAGED. FURTHER INFORMATION ON OTHER FACTORS WHICH COULD AFFECT THE
FINANCIAL RESULTS OF AHMANSON AFTER THE PROPOSED MERGER IS INCLUDED IN FILINGS
BY AHMANSON WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION"),
INCLUDING A REGISTRATION STATEMENT ON FORM S-4 FILED WITH THE COMMISSION ON
FEBRUARY 18, 1997, AND THE COMMISSION FILINGS INCORPORATED BY REFERENCE THEREIN.
AHMANSON BELIEVES THAT THE INFORMATION REGARDING THE PROPOSED WASHINGTON
MUTUAL/GREAT WESTERN MERGER IS SUBJECT TO SIMILAR QUALIFICATIONS AND
UNCERTAINTIES. ALTHOUGH THIS PRESENTATION INCLUDES INFORMATION CONCERNING
WASHINGTON MUTUAL AND GREAT WESTERN INSOFAR AS IT IS KNOWN OR REASONABLY
AVAILABLE TO AHMANSON, AHMANSON DOES NOT HAVE ACCESS TO THE BOOKS AND RECORDS OF
EITHER COMPANY. THEREFORE, INFORMATION CONCERNING GREAT WESTERN AND WASHINGTON
MUTUAL THAT HAS NOT BEEN MADE PUBLIC IS NOT AVAILABLE TO AHMANSON. CONSEQUENTLY,
WITH RESPECT TO WASHINGTON MUTUAL, GREAT WESTERN AND THEIR PROPOSED MERGER,
AHMANSON HAS RELIED ENTIRELY ON PUBLICLY AVAILABLE INFORMATION WITHOUT
INDEPENDENT VERIFICATION. MOREOVER, AHMANSON NOTES THAT THE NEED TO RELY SOLELY
ON SUCH PUBLICLY AVAILABLE INFORMATION MAY AFFECT THE JUDGMENTS UNDERLYING AN
EVALUATION OF THE FINANCIAL AND OTHER PROJECTED INFORMATION DISCUSSED HEREIN.
2
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
- --------------------------------------------------------------------------------
Let's compare the:
. Offers
. Relevant management experience
. Execution risks
3
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] THE WAMU OFFER OF AMERICA]
- --------------------------------------------------------------------------------
. EPS Dilutive
. Extraordinarily aggressive assumptions
. Unprecedented revenue and asset growth
. Unachievable cost savings
. High execution risk
. Aggressive cost savings and revenue enhancements are totally incompatible
. Proven management, but not for this deal
4
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] THE AHM OFFER OF AMERICA]
- --------------------------------------------------------------------------------
. Highly accretive (cash and reported EPS)
. Achievable base assumptions
. No revenue enhancements
. Cost saves
. Financial flexibility with stock buyback
. Equal if not better opportunity for revenue enhancements compared to WAMU
. Low execution risk
. Fundamentally sound transaction
5
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
- --------------------------------------------------------------------------------
THE WAMU OFFER
6
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] WHAT THEY WANT YOU TO BELIEVE OF AMERICA]
- --------------------------------------------------------------------------------
. Significant accretion
. Their revenue enhancements are conservative
. Their cost savings are achievable
. Low risk transaction
7
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] HOW THEY GOT THERE OF AMERICA]
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------
(dollars in millions, after-tax) 1997 1998 1999
- -------------------------------------------------------------
<S> <C> <C> <C>
WAMU Estimated Net Income $471 $ 556 $ 623/(1)/
GWF Estimated Net Income 397 434 470
==== ====== ======
Total Estimated Net Income 868 990 1,093
Net Interest Income Pickup 0 68 98/(2)//(3)/
Fee Income Increases 0 36 53/(3)/
Cost Savings 9 125 204/(4)/
==== ====== ======
Pro Forma Net Income $877 $1,218 $1,448
</TABLE>
(1) 12% growth vs. 18% in 1998 and projected at least 15%
(2) 37% return on excess capital
(3) Almost double revenue projections of comparables
(4) Between 1.45 and 1.90 times cost save projections of comparables
8
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] WHAT WE WILL DEMONSTRATE OF AMERICA]
- --------------------------------------------------------------------------------
. Transaction dilutive without revenue enhancements
. Revenue enhancements unachievable
- Historically unprecedented
- Based on unrealistic assumptions
. Cost savings overstated
- Historically unprecedented
- Based on unrealistic assumptions
. High risk transaction
. 1999 accretion bolstered by reduced stand-alone growth assumptions
9
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY REVENUE ENHANCEMENTS OVERSTATED OF AMERICA]
- --------------------------------------------------------------------------------
. In the vast majority of acquisitions, no revenue enhancements are projected
--
or required to create accretion
. WAMU revenue enhancements are almost double those of the transactions that
------
did utilize revenue enhancements
<TABLE>
<CAPTION>
% of
Revenue Acquiree's
(dollars in millions) Enhancement Revenues
- --------------------------------------------------------------------
<S> <C> <C>
First Union / First Fidelity $287 16%
NBD / First Chicago 50 2%
PNC / Midlantic 88 10%
Nations / Boatmens 180 7%
First Bank / Metropolitan 9 5%
AVERAGE 8%
- --------------------------------------------------------------------
WAMU / GWF $251 15%
- --------------------------------------------------------------------
WAMU / GWF as % of Average 188%
- --------------------------------------------------------------------
</TABLE>
10
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] GWF LOAN ORIGINATIONS OF AMERICA]
- --------------------------------------------------------------------------------
RESIDENTIAL MORTGAGES
($ in billions)
[GRAPH APPEARS HERE]
<TABLE>
<S> <C>
1996......... $ 4.0
1998......... $11.2
</TABLE>
CONSUMER LOANS
($ in billions)
[GRAPH APPEARS HERE]
<TABLE>
<S> <C>
1996......... $0.0
1998......... $1.5
</TABLE>
. Even if this unrealistic growth can be achieved, what are the implications
for credit and interest rate risk and ability to achieve cost savings?
11
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] NET INTEREST INCOME PICKUP OF AMERICA]
- --------------------------------------------------------------------------------
Loan growth is supported by "excess" capital, including preferred issuance
. Why is the net $222 million after-tax restructuring charge not reflected?
<TABLE>
<CAPTION>
(dollars in millions) 1998 1999
------ ------
<S> <C> <C>
"Excess" Capital/(1)/ $ 136 $ 359
Preferred Issuance/(1)/ 125 125
------ ------
Total "Excess" Capital Generated 261 484
Impact of Restructure Charge (222) (222)
------ ------
True "Excess" Capital $ 39 $ 262
</TABLE>
(1) As shown in investor presentation as of 3/6/97
12
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] NET INTEREST INCOME PICKUP OF AMERICA]
- --------------------------------------------------------------------------------
AHM's use of share repurchase implies an after-tax rate of return of
approximately 8%
<TABLE>
<CAPTION>
(dollars in millions) 1998 1999
------ ------
<S> <C> <C>
After-tax pickup $ 68 $ 98
What we are asked to believe:
Total "Excess" Capital Generated $261 $484
-Implied return 26% 20%
True "Excess" Capital $ 39 $262
-Implied return 174% 37%
Adjusted return at an 8% level
-Total "Excess" Capital Generated $ 21 $ 39
-True "Excess" Capital 3 21
- -------------------------------------------------------------------
Overstatement $ 65 $ 77
- -------------------------------------------------------------------
</TABLE>
13
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] FEE INCOME GROWTH* OF AMERICA]
- -------------------------------------------------------------------------------
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
1997 to 1998 Growth
-------------------
<S> <C>
GWF........................ 9%
GWF + Enhancements......... 28%
WAMU....................... 13%
WAMU + GWF................. 11%
WAMU + GWF
+ Enhancements............. 21%
</TABLE>
. Why did WAMU not project any income synergies in the ASB and
Pacific First transactions?
. Where are the expenses associated with the fee enhancements?
* Lehman Brothers research reports dated Jan. 6, 1997 for WAMU and Jan. 3, 1997
for GWF
14
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] COST SAVINGS OVERSTATED OF AMERICA]
- --------------------------------------------------------------------------------
. Unprecedented cost saves by a wide margin
-- whatever the "comparable" benchmark
. Assumes in-market cost saves for what is really more a market extension
transaction
. Projects 85% of Ahmanson's cost saves despite having less than one-half the
branch overlap
15
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] COST SAVINGS--WHAT THEY SAID OF AMERICA]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1998 1999
----------- -----------
(dollars in millions) Amount % Amount %
---- ---- ---- ----
<S> <C> <C> <C> <C>
Admin / Finance $ 52 41% $ 65 51%
Lending 15 11 69 49
Corporate Operations 56 25 96 43
Retail Banking 77 21 99 27
Subsidiaries 8 5 11 7
---- ---- ---- ----
Total Pre-tax $208 23% $340 38%
</TABLE>
. OOPS....THE NUMBERS DON'T COMPUTE
-- Dividing % by line item savings results in operating expenses of
approximately $1 billion
-- Dividing % by total pre-tax cost savings results in operating expenses of
approximately $0.9 billion
16
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON WAMU/GWF IS PRINCIPALLY A HOME SAVINGS
& COMPANY] MARKET EXTENSION MERGER OF AMERICA]
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Projected
Transaction Cost Saves
------------------------------------------------------------------------
<S> <C>
US Bancorp / West One 23%
First Union / First Fidelity 18%
First Chicago / NBD 15%
Boatmens / Fourth Financial 24%
National City / Integra 21%
Charter One / First Fed 21%
WAMU / American Savings 20%
First Bank System / First Interstate 22%
===
Average 20%
========================================================================
PROJECTED COST SAVINGS:
AS A % OF GWF'S TOTAL EXPENSES 38%
AS A % OF AVERAGE 190%
========================================================================
</TABLE>
17
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON COMPARISON TO IN-MARKET DEALS HOME SAVINGS
& COMPANY] OVERSTATED OF AMERICA]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Projected
Transaction Cost Saves
-------------------------------------------------------
<S> <C>
Fleet / Shawmut 44%
PNC / Midlantic 30%
Chemical / Chase 40%
UJB / Summit 48%
CoreStates / Meridian 35%
Mercantile / Roosevelt 37%
Wells / First Interstate 46%
Bank of Boston / BayBanks 39%
=======================================================
Average 40%
=======================================================
PROJECTED COST SAVINGS:
AS A % OF GWF'S CA EXPENSES 58%
AS A % OF AVERAGE 145%
=======================================================
</TABLE>
18
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] COST SAVINGS: COMPARABLES OF AMERICA]
- --------------------------------------------------------------------------------
WAMU's projections are significantly overstated if cost savings are normalized
to comparable transactions
. Market extension mergers
-- Cost savings overstated by $170 million
. In-market mergers
-- Cost savings overstated by $107 million
19
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] A MORE RATIONAL ANALYSIS OF AMERICA]
- --------------------------------------------------------------------------------
ASB is the in-market transaction, not GWF:
<TABLE>
<CAPTION>
Realistic Realistic
Expense Cost Savings Cost
Base Estimate Savings
=======================================
<S> <C> <C> <C>
GWF -- CA $ 583 20% $117
American Savings 268 50% 134
=======================================
Subtotal 851 28% 251
GWF -- Non CA 317 10% 32
=======================================
Total $1,168 24% $283
Projected Expense Savings 390/(1)/
========================================================================
Overstatement $107
========================================================================
</TABLE>
(1) Includes $340 million of GWF and $50 million of ASB
20
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] CREDIBILITY OF AMERICA]
- --------------------------------------------------------------------------------
WAMU offer, with its aggressive revenue assumptions and unachievable cost saves,
is:
. Not Simple
---
. Not Proven
---
. Not Low Risk
---
. Not Financially Flexible (pooling restrictions)
---
. Just Not Credible
---
21
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] SOME OTHER "SMALL" OVERSIGHTS OF AMERICA]
- --------------------------------------------------------------------------------
. Did they forget to mention that they would be increasing their balance
sheet by over an unprecedented 400% in 12 months?
. Remember what happened the last time they doubled in size?
. What happened to "at least 15% EPS growth through the year 2000"?
22
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE WAMU OFFER HOME SAVINGS
& COMPANY] IT'S DILUTIVE OF AMERICA]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Benefit of the
WAMU Reasonable Doubt
Assumptions Projections Projections
================== ================= =================
1998 1999 1998 1999 1998 1999
====== ====== ====== ====== ====== ======
<S> <C> <C> <C> <C> <C> <C>
Pro Forma NI $1,218 $1,448 $1,059 $1,243 $1,092 $1,285
WAMU Stand Alone 4.58 5.13 4.58 5.27 4.58 5.27
Pro Forma EPS 4.81 5.71 4.18 4.90 4.31 5.07
Accretion/(Dilution) 5.1% 11.2% (8.7%) (6.9%) (5.9%) (3.8%)
</TABLE>
23
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
- --------------------------------------------------------------------------------
THE AHM OFFER
24
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] THE AHM OFFER OF AMERICA]
- --------------------------------------------------------------------------------
Simple transaction, based on proven formula
------------------------
Significant Cost Savings
------------------------
[INSIDE GRAPHIC ARROW] Enhanced Shareholder Value:
1. Significant accretion
+ = 2. Accelerated EPS growth
----------------------------
Accelerated Stock Repurchase
----------------------------
[INSIDE GRAPHIC ARROW]
25
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] THE AHM OFFER OF AMERICA]
- --------------------------------------------------------------------------------
. Simple transaction
. Credible assumptions
- Achievable/conservative cost saves
- Share repurchases create financial flexibility
- Superior accretion even without possible revenue enhancements
26
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE AHM OFFER HOME SAVINGS
& COMPANY] WAMU HAS NO REVENUE ADVANTAGE OF AMERICA]
- --------------------------------------------------------------------------------
. AHM has similar or superior product offerings
. AHM has operated in the GWF marketplace since 1889
- Significant consumer lending experience in CA
- Personnel trained and products deployed
. Superior business banking platform
. AHM's seasoned management team better equipped to leverage Aristar platform
27
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] THE AHM OFFER OF AMERICA]
- --------------------------------------------------------------------------------
. Financially powerful combination enhancing shareholder value
<TABLE>
<CAPTION>
BASE CASE ENHANCED CASE*
============== ==============
1998 1999 1998 1999
==== ==== ==== ====
<S> <C> <C> <C> <C>
Cash EPS Accretion 15% 26% 19% 34%
Reported EPS Accretion (3%) 9% 2% 18%
</TABLE>
* Enhanced case assumes AHM base EPS are approximately 10% higher than "street"
estimates, 50% of WAMU's revenue enhancements, and $50 million of additional
cost saves
28
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] RELEVANT MANAGEMENT EXPERIENCE OF AMERICA]
- -------------------------------------------------------------------------------
Basic Issue
Which company, WAMU or AHM, has the most relevant management experience to:
. Take a traditional California thrift (GWF) to bank-like returns
. Run a consumer finance company
. Deliver the results on this deal
29
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] RELEVANT MANAGEMENT EXPERTISE OF AMERICA]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WAMU
<S> <C>
CALIFORNIA MARKET EXPERIENCE NO
FLORIDA MARKET EXPERIENCE NO
CALIFORNIA CREDIT CYCLE KNOWLEDGE NO
CONSUMER FINANCE EXPERTISE NO
RELEVANT ASSET / LIABILITY EXPERIENCE NO
LOCAL EXECUTIVE MANAGEMENT NO
</TABLE>
30
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] EXCEEDING FINANCIAL EXPECTATIONS OF AMERICA]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LOWER "G&A" EXPENSE
[GRAPH APPEARS HERE]
<S> <C> <C> <C> <C> <C>
Quarters: 4Q95 1Q96 2Q96 3Q96* 4Q96
G&A
(Dollars in Millions): $199 $193 $190 $190 $188
</TABLE>
<TABLE>
<CAPTION>
HIGHER FEE INCOME
[GRAPH APPEARS HERE]
<S> <C> <C> <C> <C> <C>
Quarters: 4Q95 1Q96 2Q96 3Q96 4Q96
Other Fee Income
(Dollars in Millions): $27 $27 $31 $34 $44
</TABLE>
<TABLE>
<CAPTION>
IMPROVED EFFICIENCY
[GRAPH APPEARS HERE]
<S> <C> <C> <C> <C> <C>
Quarters: 1995 1Q96 2Q96 3Q96* 4Q96
Efficiency Ratio: 58.9% 53.8% 52.8% 53.1% 49.5%
</TABLE>
<TABLE>
<CAPTION>
POWER OF STOCK BUYBACK
[GRAPH APPEARS HERE]
<S> <C> <C>
$ Net Income Fully-Diluted EPS
4Q96 Percent Increase
over 4Q95: 50% 85%
</TABLE>
* 3Q96 excludes SAIF recap and FIB acquisition charges
31
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] AHM: EXCEEDING FINANCIAL EXPECTATIONS OF AMERICA]
- --------------------------------------------------------------------------------
CONSUMER LOAN PRODUCTION
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Quarters: Q4-1995 Q1-1996 Q2-1996 Q3-1996 Q4-1996
------- ------- ------ ------- -------
<S> <C> <C> <C> <C> <C>
($ in millions): $19 $16 $51 $71 $131
</TABLE>
INVESTMENT SALES
(AVG DAILY CORE SALES)
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
1995 1996 FEB-97
------- ------- ------
<S> <C> <C> <C>
($ in millions): $861 $2,230 $3,540
</TABLE>
32
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] AHM: EXCEEDING FINANCIAL EXPECTATIONS OF AMERICA]
- --------------------------------------------------------------------------------
SIGNIFICANTLY IMPROVED RETURNS
<TABLE>
<CAPTION>
CASH RETURN ON ASSETS
[GRAPH APPEARS HERE]
<S> <C> <C> <C> <C> <C>
4Q96
Quarters: 1Q96 2Q96 3Q96 4Q96 (Reported)
0.53% 0.58% 0.62% 0.78% 0.73%
</TABLE>
<TABLE>
<CAPTION>
CASH RETURN ON EQUITY
[GRAPH APPEARS HERE]
<S> <C> <C> <C> <C> <C>
4Q96
Quarters: 1Q96 2Q96 3Q96 4Q96 (Reported)
9.6% 10.8% 11.6% 16.6% 14.7%
</TABLE>
- ------------------
3Q96 excludes SAIF recap and First Interstate branch acquisition charges
33
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] RELEVANT MANAGEMENT EXPERTISE OF AMERICA]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WAMU AHM
<S> <C> <C>
CALIFORNIA MARKET EXPERIENCE NO YES
FLORIDA MARKET EXPERIENCE NO YES
CALIFORNIA CREDIT CYCLE KNOWLEDGE NO YES
CONSUMER FINANCE EXPERTISE NO YES
RELEVANT ASSET / LIABILITY EXPERIENCE NO YES
LOCAL EXECUTIVE MANAGEMENT NO YES
</TABLE>
34
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] CREDIBILITY OF AHMANSON MANAGEMENT OF AMERICA]
- --------------------------------------------------------------------------------
Acquisitions
. $8 Billion of California Deposits
. All acquisitions successfully completed
. Results delivered
. Time and again
. 61 First Interstate Branches
. Full business lending developed
. Full business cash management developed
. Systems developed in less than 6 months
. All integrated with no increase in G&A
35
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON THE AHM OFFER HOME SAVINGS
& COMPANY] EXCEEDING FINANCIAL EXPECTATIONS OF AMERICA]
- --------------------------------------------------------------------------------
. Credit quality improvement
. NPAs in February down $194 million from peak a year ago
. Single family NPLs down 12 consecutive months
. Estimated 1Q credit costs approximates $50 million
. G&A flat despite significant revenue growth
. Consumer loan originations at $500 million run rate
. 1Q 1997 earnings of approximately $0.75 or higher
. 1997 earnings to exceed Street estimates by 5-15%
36
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
- --------------------------------------------------------------------------------
EXECUTION RISKS
37
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON WAMU HOME SAVINGS
& COMPANY] HIGH EXECUTION RISK OF AMERICA]
- --------------------------------------------------------------------------------
. Integrating GWF into unstable environment
- ASB not yet integrated
- Read WAMU risk factor disclosures in 8-K
. Increasing deposits by 473% in 12 months
- Never before on this scale
-----
. No financial flexibility because of pooling
. No track record of California acquisitions
. Aggressive revenue growth and cost savings simultaneously
--------------
38
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON AHM HOME SAVINGS
& COMPANY] LOW EXECUTION RISK OF AMERICA]
- --------------------------------------------------------------------------------
. Integrating GWF into a stable environment
. Company understands markets and competitive environment
. Been there, done that
. Capital management strategy consistent with track record
. Cost saves are conservative
. Revenue enhancements, all upside
39
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] COMPARING THE OFFERS OF AMERICA]
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Even without considering our enhanced case, the AHM offer is the clear choice
<TABLE>
<CAPTION>
WAMU
REASONABLE
AHM BASE CASE PROJECTIONS
================= ==================
1998 1999 1998 1999
================= ==================
<S> <C> <C> <C> <C>
Cash EPS Accretion 15% 26% (8)% (7)%
Reported EPS Accretion (3)% 9% (9)% (7)%
</TABLE>
40
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[LOGO OF [LOGO OF
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& COMPANY] COMPARING THE OFFERS OF AMERICA]
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<TABLE>
<CAPTION>
AHM Offer WAMU Offer
================== =============================
Base Enhanced Reasonable Benefit of
Cash Basis Case Case Assumptions the Doubt
========== ===== ========= ============= ============
<S> <C> <C> <C> <C>
Pro Forma EPS
1998E $4.10 $4.50 $4.42 $4.54
1999E 4.95 5.53 5.13 5.30
Exchange Ratio 1.05X 1.05X 0.90X 0.90X
- -------------------------------------------------------------------------------------------------
| Pro Forma EPS per GWF Shareholder |
| 1998E $4.31 $4.72 $3.97 $4.09 |
| 1999E 5.20 5.81 4.62 4.77 |
- -------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] SUMMARY OF AMERICA]
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. Credibility is critical
. WAMU projections don't compute
- Based on comparable transactions and other relevant factors, their cost
savings and revenue enhancements are significantly overstated
. WAMU's offer is permanently dilutive
. The AHM offer provides superior value to GWF shareholders
. Because we have the superior offer, we remain committed
42
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON QUOTATIONS FROM HOME SAVINGS
& COMPANY] WAMU'S FORM 8-K FILED MARCH 6, 1997 OF AMERICA]
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INTEGRATION RISK
- ----------------
" . . . THE INTEGRATION OF GWF AND ASB MAY POSE DIFFICULTIES THAT COULD
ADVERSELY AFFECT THE RESULTS OF OPERATIONS OF THE COMBINED COMPANY. IN ADDITION,
THE MERGER WITH GWF WILL BRING 120 BRANCH LOCATIONS IN FLORIDA WITH $7.1 BILLION
IN DEPOSITS AND 129 RETAIL MORTGAGE OFFICES AND 36 WHOLESALE OFFICES IN 27
STATES, AREAS WHERE WAMU HAS LIMITED OPERATING EXPERIENCE."
LOAN GROWTH RISK
- ----------------
"[PROJECTIONS] ASSUME THAT FOLLOWING THE MERGER THE COMBINED COMPANY WILL BE
ABLE TO RETAIN A GREATER PERCENTAGE OF LOAN ORIGINATIONS THAN EITHER WAMU OR GWF
COULD ON A STAND-ALONE BASIS, WHICH IT IS ANTICIPATED WILL INCREASE NET INCOME."
43
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON QUOTATIONS FROM HOME SAVINGS
& COMPANY] WAMU'S FORM 8-K FILED MARCH 6, 1997 OF AMERICA]
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CALIFORNIA EXPERIENCE
- ---------------------
"WAMU MANAGEMENT AT THE HOLDING COMPANY LEVEL HAS LIMITED OPERATING EXPERIENCE
IN CALIFORNIA, WHERE THE GREATEST EXPANSION OF CONSUMER BANKING ACTIVITIES IS
EXPECTED TO OCCUR. ACCORDINGLY, THERE CAN BE NO ASSURANCE THAT THE COMBINED
COMPANY'S EMPHASIS ON CONSUMER BANKING ACTIVITIES WILL BE SUCCESSFUL IN THE
CALIFORNIA MARKET OR THAT ANY INCREASE IN FEE INCOME ANTICIPATED BY THE
[PROJECTIONS] WILL BE ACHIEVED."
CONSUMER FINANCE EXPERIENCE
- ---------------------------
"WAMU HAS LITTLE EXPERIENCE IN OPERATING A CONSUMER FINANCE COMPANY." "IF WAMU
IS NOT ABLE TO RETAIN OTHER KEY MANAGEMENT PERSONNEL OF ARISTAR, RESULTS OF
OPERATION OF ARISTAR COULD BE MATERIALLY ADVERSELY AFFECTED, WHICH COULD
MATERIALLY AFFECT THE EARNINGS CONTRIBUTION OF ARISTAR..."
44
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
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SHARES OF GREAT WESTERN FINANCIAL CORPORATION ("GWF") COMMON STOCK HELD BY H. F.
AHMANSON & COMPANY ("AHMANSON"), ITS DIRECTORS AND EXECUTIVE OFFICERS AND
CERTAIN EMPLOYEES, OTHER REPRESENTATIVES OF AHMANSON AND CERTAIN
OTHER PERSONS WHO MAY SOLICIT PROXIES OR CONSENTS, AND CERTAIN
TRANSACTIONS BETWEEN ANY OF THEM AND GWF
AHMANSON AND CERTAIN OTHER PERSONS NAMED BELOW MAY SOLICIT PROXIES (A) TO
ELECT THREE NOMINEES AND ONE OR MORE ALTERNATE NOMINEES (THE "NOMINEES") AS
DIRECTORS OF GWF AT THE ANNUAL MEETING OF STOCKHOLDERS OF GWF TO BE HELD ON A
DATE TO BE ANNOUNCED (THE "ANNUAL MEETING") AND (B) IN FAVOR OF THE ADOPTION AT
THE ANNUAL MEETING OF A NON-BINDING STOCKHOLDER RESOLUTION AND SEVEN PROPOSALS
TO AMEND THE BY-LAWS OF GWF. AHMANSON AND CERTAIN OTHER PERSONS NAMED BELOW ARE
ALSO SOLICITING CONSENTS FROM STOCKHOLDERS OF GWF TO APPROVE PROPOSALS, WITHOUT
A STOCKHOLDERS' MEETING, TO ADOPT A NON-BINDING RESOLUTION OF STOCKHOLDERS AND
AMENDMENTS TO THE BY-LAWS OF GWF. THE PARTICIPANTS IN THIS SOLICITATION MAY
INCLUDE AHMANSON; THE DIRECTORS OF AHMANSON (BYRON ALLUMBAUGH, HAROLD A. BLACK,
RICHARD M. BRESSLER, DAVID R. CARPENTER, PHILIP D. MATTHEWS, RICHARD L. NOLAN,
DELIA M. REYES, CHARLES R. RINEHART, FRANK M. SANCHEZ, ELIZABETH A. SANDERS,
ARTHUR W. SCHMUTZ, WILLIAM D. SCHULTE, AND BRUCE G. WILLISON); THE FOLLOWING
EXECUTIVE OFFICERS AND EMPLOYEES OF AHMANSON OR ITS SUBSIDIARIES: KEVIN M.
TWOMEY (SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER), MADELEINE
A. KLEINER (SENIOR EXECUTIVE VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER AND
GENERAL COUNSEL), ANNE-DRUE M. ANDERSON (EXECUTIVE VICE PRESIDENT AND
TREASURER), TIM S. GLASSETT (FIRST VICE PRESIDENT AND ASSISTANT GENERAL
COUNSEL), LINDA MCCALL (SENIOR VICE PRESIDENT AND DIRECTOR OF CORPORATE TAXES),
STEPHEN A. SWARTZ (SENIOR VICE PRESIDENT AND DIRECTOR OF INVESTOR RELATIONS),
BARBARA TIMMER (SENIOR VICE PRESIDENT AND DIRECTOR OF GOVERNMENT AND LEGISLATIVE
AFFAIRS), MARY A. TRIGG (SENIOR VICE PRESIDENT AND DIRECTOR OF PUBLIC
RELATIONS), ERIC WARMSTEIN (SENIOR VICE PRESIDENT AND DIRECTOR OF CORPORATE
DEVELOPMENT), SAMANTHA DAVIES (VICE PRESIDENT OF PUBLIC RELATIONS), ADRIAN
RODRIGUEZ (VICE PRESIDENT OF PUBLIC RELATIONS), AND PETER BENNETT (ASSISTANT
VICE PRESIDENT OF PUBLIC RELATIONS); AND THE FOLLOWING NOMINEES: LAWRENCE A. DEL
SANTO, ROBERT T. GELBER, WOLFGANG SCHOELLKOPF, HUGH M. GRANT AND JOHN E. MEROW.
45
<PAGE>
[LOGO OF [LOGO OF
H. F. AHMANSON HOME SAVINGS
& COMPANY] OF AMERICA]
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As of the date of this communication, Ahmanson is the beneficial owner
of 188,000 shares of GWF Common Stock; Ahmanson may purchase additional, or
sell, shares of GWF Common Stock from time to time. Other than Mr. Gelber, who
owns 332 shares of GWF Common Stock, none of the Nominees is the beneficial
owner of any GWF Common Stock.
Other than set forth herein, as of the date of this communication,
neither Ahmanson nor any of its directors, executive officers or other
representatives or employees of Ahmanson, any Nominees or other persons known to
Ahmanson, who may solicit proxies has any security holdings in GWF. Ahmanson
disclaims beneficial ownership of any securities of GWF held by any pension plan
or other employee benefit plan of Ahmanson or by any affiliate of Ahmanson.
Ahmanson further disclaims beneficial ownership of any securities of GWF held by
Ahmanson or any of its subsidiaries for the benefit of third parties or in
customer or fiduciary accounts in the ordinary course of business.
Although Credit Suisse First Boston Corporation ("CSFB") and Montgomery
Securities ("Montgomery"), financial advisors to Ahmanson, do not admit that
they or any of their directors, officers, employees or affiliates are a
"participant," as defined in Schedule 14A promulgated under the Securities
Exchange Act of 1934 by the Securities and Exchange Commission, or that such
Schedule 14A requires the disclosure of certain information concerning CSFB or
Montgomery, CSFB and Montgomery may assist Ahmanson in such a solicitation. Each
of CSFB and Montgomery engages in a full range of investment banking, securities
trading, market-making and brokerage services for institutional and individual
clients. In the normal course of their respective businesses, each of CSFB and
Montgomery may trade securities of GWF for their own account and the account of
their customers and, accordingly, may at any time hold a long or short position
in such securities. As of March 6, 1997, CSFB held a net 4,124 shares of GWF
common stock and Montgomery held no shares of GWF common stock.
Except as disclosed above, to the knowledge of Ahmanson, none of
Ahmanson, the directors or executive officers of Ahmanson, the employees or
other representatives of Ahmanson who may participate in this solicitation or
the Nominees named above has any interest, direct or indirect, by security
holdings or otherwise, in GWF.
46
