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TRANSCRIPT
IKB Deutsche Industriebank AG
29/30 April 2014, London
Disclaimer
This document has been prepared by IKB Deutsche Industriebank AG („IKB“) as an Investor Relation presentation for your information only. Thepresentation is designed to provide an outline of IKB and its business segments for professional and institutional counterparties.
IKB assumes no liability for the accuracy or completeness of any given Balance Sheet or Profit and Loss figures. Please refer to IKB’s annual reports aspublished on our internet website (www.ikb.de) for current and audited financial figures.
This presentation is no substitute for any specific product information or any other information relevant for business purposes. Accordingly IKBexpresses no intent to enter into any contract or even pre-contract negotiation. Hence, IKB assumes no responsibility or liability whatsoever for anyexpense, loss or damage directly or indirectly incurred in connection with the use of this presentation or parts of it.
This presentation may contain forward-looking statements. You are cautioned not to place undue reliance on such statements regarding, e.g.expectations, projections or estimations, because the statements are based on current beliefs and expectations which may transpire as materiallywrong.
This document is copyright protected. It must not be amended or modified. It must not be used for commercial purposes, in whole or in part, without theprior written consent of IKB.
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2
At a Glance
IKB Deutsche Industriebank AG
Founded in 1924
Headquarter in Düsseldorf, Germany
Shareholders: Lone Star: 91.5%, Free float: 8.5%
Financial year: 1 April until 31 March
Key figures as at 31 December 2013; Capital ratios: CRD IV/CRR as at 1 January 2014 incl. 20% phase-in
3
„Bank for the Mittelstand“
Focus on Mittelstand companies (SME)
Long-standing, stable client relationships
High lending competence
Market leader in public programme loan schemes
Capital markets and advisory services
Staff, Locations 1,447 employees (FTE), thereof 402 at IKB Leasing
Locations: Düsseldorf, Berlin, Frankfurt, Hamburg, Munich, Stuttgart; London, Madrid, Milan, Paris
Group Financials
9-month results 2013/14 (April until December 2013):
- Net interest, lease, fee, commission and trading income: € 255 million (9 months 2012/13: € 167 million)
- Administrative expenses: € 211 million (9 months 2012/13: € 220 million)
- Net other income: € -36 million incl. € 265 million fund for general banking risk (9 months 2012/13: € 68 million)
- Net risk provisioning: € -79 million (9 months 2012/13: € -5 million)
- Taxes: € 109 million (9 months 2012/13: € -6 million)
- Consolidated profit: € 39 million (9 months 2012/13: € 4 million)
Group Capital/Liquidity
Total assets: € 25.8 billion
CET 1 ratio: 9.1%; Tier 1 ratio: 11.6%; Total Capital ratio: 14.8%; Leverage ratio: 6.4%
Comfortable liquidity position
The Business Strategy at a Glance
Business Model
Basis
Long-standing client relationships, understanding the needs of the Mittelstand
Ca. 1,400 client groups
Ca. 18,000 leasing customers
11% market share in relevant KfW public programme loans
6.5% market share in long-term loans to the manufacturing industry
Risk
Conservative risk provisioning
Loan book diversified by sector and geography
Low market risk profile
Cost
Business model adjusted
EU requirements fulfilled
SoFFin guarantees redeemed in full and ahead of time
Major legal risks settled
Cost reductions through simplification
4
Focus on Mittelstand companies (SME)
Regional and sectoral client coverage with product competence
Lending only with price and risk discipline
Advisory and capital markets related services
Business model5
Regional Coverage Industry Coverage
Düsseldorf Berlin
Hamburg Frankfurt
Stuttgart Munich
Paris Milan
Chemicals, Pharma&Healthcare
Consumer, Retail&Logistics
Financial Sponsors Industrials/Automotive
Energy&UtilitiesTechnology, Media,
Telecom
Real Estate
ca. 250
Client Coverage (ca. 150)
AdvisoryCredit Financial Markets
M&A/Restructuring
Assets under Management
Structure-&Profit Optimisation
Capital Markets&Derivatives
Institutional Sales
Trading
Syndication
Corporate Principal&PPLS Loans
Leveraged Finance/Acquisition Finance
Product Groups (ca. 100)
Client
As at 31 December 2013
One regional and/or one
industry bankerper client
One regional and/or one
industry andone productbanker per
transaction
Well Defined Target Segments
As at 31 December 2013
Client numbers relate to company groups (sales Germany).
6
~ 8,000
Big Enterprises
SME
SME II
LargeSME
Revenue Segment
Banking Products
IKB Focus
Clients
> € 1 billion ~ 400Complete range ofbanking products
€ 250 million -€ 1 billion
~ 700
Broad range ofbanking productsincl. capitalmarkets
€ 50 million -€ 250 million
Advisory, deriva-tes, acquisitionfinance, paymentprocessing, long-term loans
Payment processing, long-term loans, overdrafts
< € 50 million
Total ~ 2,500
Total Market
~ 600
~ 2,000
~ 10,600
–
~ 1,100
~ 300
IKB‘s Target Clients
Lending Business7
Corporate Loans
Existing clients and target clients allow profitable lending business
Focus on leading and structuring syndicated loans
Complex transactions generate better margins
Strict maturity and profitability criteria
Acquisition Financing Leading provider of acquisition financing in the German mid-cap market
Structuring, underwriting and syndication of loan volumes up to € 500 million
Public Programme LoanSchemes
Leading bank in public programme loan schemes
Close relationships to KfW and the regional development banks
Public programme loan schemes account for 47% of new loans(no funding risk/sometimes credit risk transfer)
Strategy
Rising commission income from advisory and underwriting
Selective new business
Good credit assessment thanks to long-term lending relationship
Short decision-making paths
Fast decisions
Refinancing and Liquidity
Structure of funding (as at 23 April 2014)
8
Public Programme Loan Schemes
Channelling loans by KfW,regional development agencies and EIB
47% of new lending in the first nine months of the financial year 2013/14
Protected by Deposit Protection Fund of the Association of
German Banks
Promissory note loans: € 2.7 billion
Business and private customer deposits: € 6.2 billion
Bearer Bonds/
Further Asset-Based Funding
Repos/ECB
Equity, Hybrids, Subordinated Bonds
Asset-based funding
Bearer bonds, debt issuance programme
Financing of liquidity portfolio
Portfolio serves as collateral
LTRO paid back
Long-term funds
Basel 3
Public programme loan schemes29%
Private customerdeposits
17%
Hybrids, Subordinated,
Others10%
Promissorynote loans
12%
Further secured
long termfunding
3%
Repo fundingtransactions
with EUREX andcentral banks
17%Business customerdeposits
10%
Unsecuredbonds
2%
Funding Structure9
€ billion
8.6 8.2 8.16.4
2.24.8 3.8
3.4
0.4
0.6
3.62.6 3.6
2.6
3.1 3.6
3.8
4.9
4.0 3.5
2.7
6.52.0
1.40.4
0.3
0.4
3.0
2.7
2.5
2.2
0
5
10
15
20
25
30
31 March 2011 31 March 2012 31 March 2013 31 March 2014
Hybrids, Subordinated, Others
Unsecured bonds
SoFFin
Promissory note loans
Private customer deposits
Business customer deposits
Further secured long term funding
Repo funding transactions with EUREX and central banks
Public programme loan schemes
Tie-up of liquidity of all assets and liabilities by maturity
Prolongation of customer deposits assumed in the basis scenario
Net liquidity effect of new business and drawing of liquidity
commitments
Modelling of the business loan portfolio (unscheduled
repayments, insolvencies, etc.) based on back-testing
ECB collateral pool
Liquidity Plan10
€ million
Run-off scenario
Liquidity plan
-1500
0
1500
3000
4500
6000
Apr14
Jul14
Oct14
Jan15
Apr15
Jul15
Oct15
Jan16
Apr16
Jul16
Oct16
Jan17
Apr17
Basis scenario
Liquidity Portfolio*
Structure of the liquidity portfolio as at 31 December 2013
11
Covered Bonds34%
EU, Suprasand Agencies
30%
Government Bonds 28%
Financial Senior
Unsecured 2%
Specials 5%
Cash 1%
EU, Supras and Agencies
30%
Other2% Cash
1%UK2%
France7%
Italy8%
Spain14%
Germany22%
Benelux and Austria
8%
Scandies2%
Eastern Europe
4%
Bond Class Allocation
Country Allocation
AAA44%
AA+13%
AA3%
AA-11%
A+2%
A7%
A-3%
BBB+8%
BBB5%
BBB-2%
BB1%
Cash1%
Credit Rating Allocation
5642 5762 6281 5962 6299
0
2000
4000
6000
8000
31 Mar2010
31 Mar2011
31 Mar2012
31 Mar2013
31 Dec2013
€ million
Development of liquidity portfolio/investment
* Bond portfolio
Regulatory Equity Position of IKB Group
Trends
Ongoing reduction of RWAs
€ 265 million addition of section 340g HGB reserves (April until December 2013)
Participation in ECB’s comprehensive assessment leads to complex management issues and high costs
1) RWA + market risk equivalent + operational risk + credit valuation adjustment risk
2) RWA + market risk equivalent + operational risk
12
€ million 31 Dec 2013 € million 31 Dec 2013 31 March 2013 31 March 2012 31 March 2011
Common Equity Tier 1 1,340 Tier 1 1,826 1,542 1,698 2,120
Additional Tier 1 367 Tier 2 524 672 695 919
Total Tier 1 1,707 Tier 3 0 0 0 0
Tier 2 474 Deductions -14 -44 -137 -149
Own Funds 2,181 Equity 2,336 2,170 2,256 2,890
Total RWA1) 14,777 Total RWA2) 13,906 15,763 17,301 18,221
CET 1 Ratio in % (CRR) 9.07 Tier 1 ratio in % 13.08 9.65 9.42 11.23
Total Capital Ratio in % 14.76 Capital ratio in % 16.80 13.77 13.04 15.86
Total Assets (€ billion) 25.8 (HGB) 25.8 (HGB) 27.6 (HGB) 32.6 (HGB) 31.4 (IFRS)
Basel 2CRD IV/CRR
Non-strategic portfolio
- Legacy portfolio without active customer support
- Active management
- Equity-preserving reduction
Value-at-risk
- Further increase as a result of financial/debt crisis
- Essentially determined by credit and interest rate risks
Reduction of Non-Strategic Portfolio and VaR
Value-at-risk (99% confidence level, 1-day holding period)
Current structure of non-strategic portfolio
13
8952
65315231
47713744
0
2000
4000
6000
8000
10000
31 Mar2010
31 Mar2011
31 Mar2012
31 Mar2013
31 Dec2013
Real estatefinance
24%PFI/PPP
23%
Project finance13%
Export finance2%
Acquisitionfinance
7%Securities
20%
Portfolio investments11%
€ million
25.9
43.9
56.1
46.050.1
0
20
40
60
31 Mar2010
31 Mar2011
31 Mar2012
31 Mar2013
31 Dec2013
€ million
Non-strategic portfolio
Key Factors
Risk Costs and Coverage
Provision for possible loan losses NPA ratio and coverage1)
1) NPA ratio: (NPAs/Credit volume + Valuation discount on securities; NPA coverage: (Loan loss charges and provisions + Valuation discount on securities)/NPAs2) calculation changed: figures based on the former basis as at 31 March 2010: 7.9% NPA ratio, 48% NPA coverage
PL-Quote und -Coverage*
14
Since 2010: Decrease due to the strong economic development,
particularly in Germany and balance sheet reduction
As at 31 December 2013 (HGB)
- NPAs: € 850 million
- Loan loss charges and provisions: € 428 million
- Valuation discount on securities: € 39 million
% %€ million
6.76.0
5.5
4.03.6
3.1
4947 47 46 44
55
0
10
20
30
40
50
60
0
2
4
6
8
10
12
31 Mar2009
31 Mar2010
31 Mar2011
31 Mar2012
31 Mar2013
31 Dec2013
NPA ratio NPA coverage
2)
590
494
79
2616
71
5
79
0
100
200
300
400
500
600
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
IFRS HGB (net risk provisioning) 9 months
MechanicalEngineering
5%
EnergySupply
3%Services
3%
MetalManufac-
turingProducts
3%Retail
3%
Other Industrial Sectors
26%
Real Estate3%
Financial Sector
7%
Banks24%
Public Sector14%
RiskTransfers
9%Rating 1-4 (AAA to A)
27%
Rating 5-7 (A- to BBB)
31%
Rating 8-10 (BBB- to BB)
18%
Rating 11-13 (BB- to B)
8%
Rating 14-15 (B- to CC)
2%
Problem Exposures
4%
RiskTransfers
9%
Diversified Loan Portfolio
Credit volume by rating (as at 31 December 2013) Credit volume by sector (as at 31 December 2013)
15
Two thirds of loan book are rated better than BBB High granularity of loan portfolio
No industrial sector accounts for more than 5%
€ 26.9 billion
€ 26.9billion
Legal Issues16
Rhineland Funding,
Havenrock I,
Havenrock II,
Rhinebridge
Legal risks of major portfolio investments settled
Continuing third party indemnification
Lehman Settlement in November 2013, no further legal risks
Legal Proceedings
Due to Alleged
Incorrect Capital
Market Information
Ca. 10 individual suits with a volume of ca. € 0.75 million
Special Audit Assessment whether there is negligence by members of Board of Managing Directors and members of the
Supervisory Board in connection with the IKB crisis
No direct damage claims
Results
Consolidated net result Net result IKB AG (HGB)
-11
-580
-967
21
-517
-424
-143
4391)
-1000
-800
-600
-400
-200
0
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
IFRS HGB 9 months
17
-1761
-861
-349
-190-255
-162-76
01)
-2000
-1800
-1600
-1400
-1200
-1000
-800
-600
-400
-200
0
2002007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
FY 9 months
€ million € million
1) € 265 million addition of section 340g HGB reserves in the first nine months of the financial year 2013/14
Profit Components
Net interest income Net fee and commission income
18
€ million
303
179144 154
211 210
172
227
0
100
200
300
400
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
IFRS HGB (Net interest and lease income) 9 months
33
-52
-93
-63 -59
5
-4
22
-150
-100
-50
0
50
100
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
IFRS HGB 9 months
€ million
Improved performance in the liquidity portfolio
Refinancing costs decreased
Reduced credit volume due to EU requirements
Increased net interest income with declining credit volume
€ 343 million SoFFin fees were net fee and commission expenses
thereof SoFFin fees
(77) (126)(5) (33)(102) (0)(33)
Administrative Expenses
Staff expenses Other administrative expenses
19
Employees€ million
179164 167
159 164 159
117 121
1718
1537 1557 15161457 1447
500
1000
1500
2000
0
100
200
300
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
IFRS HGB 9 months Employees (FTE as at period end)
€ million
196
137154
138 138145
10490
0
50
100
150
200
250
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
IFRS HGB 9 months
Gradual reduction of staff
Hiring of specialists to execute the business model
Additional expenses from regulatory requirements
Process optimisation projects
Legal and consultancy costs are decreasing
Costs due to new product/team offers
IKB Today – A Strong Franchise
Strong Client Franchise
Ca. 1,400 client groups with increasing need for broader product range
Less than 1% of assets of German banks
6.5% market share in long-term loans to the manufacturing industry
11% market share in relevant KfW public programme loans
Long-standing client relationships
Leading position in public programme loan schemes
Increasing strength in mid-cap acquisition financing
Derivatives and capital markets services
M&A and restructuring advice
Ca. 100 product specialists
Broad business expertise
Profound market knowledge
Deep industry insight
20
Lending
Advisory and
Capital Markets
Expertise
Risks
Decreasing NPA ratio, structured credit investments limited
Low interest rate, FX and volatility risks
Legal risks largely resolved
Solid Capital Base Group Common Equity Tier 1 ratio: 9.1% (Basel 3)
Sufficient Funding Diversified funding
€ 6.2 billion customer deposits, € 2.7 billion promissory note loans
Outlook21
Focus on SME clients Client coverage integrating regional, sectoral and product competence
Increasing Revenues
Profitable new lending business
Increasing share of advisory, derivative and capital markets revenues
Reduction of non-strategic investments
Reducing Costs
Reduction of administrative expenses
Process optimisation
Reducing complexity
Risk Management
Conservative criteria for new loans
Restrictive management of market risks
Transparency and open culture of communication
Appendix
Consolidated Income Statement 9-Months 2013/1423
€ million
1 Apr 2013
to 31 Dec 2013
1 Apr 2012
to 31 Dec 2012 Change
Net interest and lease income 227 172 55
Net fee and commission income 22 -4 27
Net trading results 6 -1 7
Administrative expenses -211 -220 9
Personnel expenses -121 -117 -4
Other administrative expenses -90 -104 14
Net other income1) -36 68 -104
Net risk provisioning -79 -5 -74
Result from ordinary business activities -70 10 -80
Taxes 109 -6 115
Consolidated net profit 39 4 35
Some totals may be subject to discrepancies due to rounding differences.1) Inclusive addition of € 265 million made to the fund for general banking risks, which is also common equity tier I capital under Basel 3. This addition is recognised as an expense
under other comprehensive income; the common equity tier I capital of IKB was increased by a corresponding amount.
Consolidated Income Statement 2012/1324
€ million
1 Apr 2012
to 31 Mar 2013
1 Apr 2011
to 31 Mar 2012 Change
Net interest and lease income 210 211 -1
Net fee and commission income 5 -59 64
Net trading results 1 0 1
Administrative expenses -304 -302 -2
Personnel expenses -159 -164 5
Other administrative expenses -145 -138 -7
Net other income 21 -252 273
Net risk provisioning -71 -16 -55
Result from ordinary business activities -137 -416 279
Taxes -6 -8 2
Consolidated net loss -143 -424 281
Some totals may be subject to discrepancies due to rounding differences.
Income Statement IKB AG 9-Months 2013/1425
€ million
1 Apr 2013
to 31 Dec 2013
1 Apr 2012
to 31 Dec 2012 Change
Net interest and lease income 154 60 94
Net fee and commission income 30 -2 32
Net trading results 6 -1 7
Administrative expenses -180 -189 9
Personnel expenses -96 -92 -4
Other administrative expenses -84 -97 13
Net other income1) -48 67 -115
Net risk provisioning -75 -9 -66
Result from ordinary business activities -112 -73 -39
Taxes 112 -2 114
Net profit/loss 0 -76 76
Some totals may be subject to discrepancies due to rounding differences.1) Inclusive addition of € 265 million made to the fund for general banking risks, which is also common equity tier I capital under Basel 3. This addition is recognised as an expense
under other comprehensive income; the common equity tier I capital of IKB was increased by a corresponding amount.
Income Statement IKB AG 2012/1326
€ million
1 Apr 2012
to 31 Mar 2013
1 Apr 2011
to 31 Mar 2012 Change
Net interest and lease income 150 517 -367
Net fee and commission income 9 -51 60
Net trading results 1 1 1
Administrative expenses -258 -255 -3
Personnel expenses -124 -128 4
Other administrative expenses -134 -127 -7
Net other income 8 -454 462
Net risk provisioning -72 -4 -68
Result from ordinary business activities -162 -247 85
Taxes 0 -8 8
Net loss -162 -255 93
Some totals may be subject to discrepancies due to rounding differences.
Balance Sheet of IKB Group as at 31 December 201327
ASSETS
€ million 31 Dec 2013 31 Mar 2013
EQUITY AND LIABILITIES
€ million 31 Dec 2013 31 Mar 2013
Cash reserve 194 87 Liabilites to banks 11.094 11,863
Receivables from banks 2,034 2,219 Liabilities to customers 9.922 10,882
Receivables from customers 13,045 14,707 Securitised liabilities 1.060 987
Bonds and other fixed-income securities 7,770 7,855 Trading liabilities 278 242
Equities and other non-fixed-income
securities 569 497
Other liabilities 553 512
Assets held for trading 254 266 Provisions 273 458
Equity investments 25 27 Deferred income 168 146
Investments in associates 45 15 Subordinated liabilities 970 1,374
Investments in affiliated companies 3 2 Profit participation capital 32 32
Lease assets 1,226 1,365 Fund for general banking risk 436 171
Intangible assets 16 19 Equity 990 952
Tangible assets 10 13 Subscribed capital 1.622 1,622
Other assets 208 286 Capital reserves 1.751 1,751
Prepaid expenses 112 72 Revenue reserves 5 5
Deferred tax assets 231 148 Currency translation differences -18 -17
Excess of plan assets over pension
liability 33 40
Net accumulated losses for current
financial year -2.370 -2,408
Total assets 25,775 27,617 Total equity and liabilities 25.775 27,617
Some totals may be subject to discrepancies due to rounding differences.
Balance Sheet of IKB Group as at 31 March 201328
ASSETS
€ million 31 Mar 2013 31 Mar 2012
EQUITY AND LIABILITIES
€ million 31 Mar 2013 31 Mar 2012
Cash reserve 87 19 Liabilites to banks 11,863 13,209
Receivables from banks 2,219 2,580 Liabilities to customers 10,882 10,021
Receivables from customers 14,707 16,045 Securitised liabilities 987 5,352
Bonds and other fixed-income securities 7,855 10,578 Trading liabilities 242 139
Equities and other non-fixed-income
securities 497 1,125
Other liabilities 512 490
Assets held for trading 266 222 Provisions 458 422
Equity investments 27 38 Deferred income 146 150
Investments in associates 15 19 Subordinated liabilities 1,374 1,472
Investments in affiliated companies 2 2 Profit participation capital 32 36
Lease assets 1,365 1,411 Fund for general banking risk 171 190
Intangible assets 19 18 Equity 952 1,090
Tangible assets 13 15 Subscribed capital 1,622 1,621
Other assets 286 268 Capital reserves 1,751 1,751
Prepaid expenses 72 49 Revenue reserves 5 27
Deferred tax assets 148 152 Currency translation differences -17 -18
Excess of plan assets over pension
liability 40 31
Net accumulated losses for current
financial year -2,408 -2,291
Total assets 27,617 32,570 Total equity and liabilities 27,617 32,570
Some totals may be subject to discrepancies due to rounding differences.
Loss Participation of the Hybrids29
Maturity ISIN
Total repayment
amount before
loss participation
in €
Denomination
to original
nominal
amount
before loss
participation
in €
Repayment amount per item after loss participation
2007/08
in €
2008/09
in €
2009/10
in €
2010/11
in €
2011/12
in €
2012/13
in €
2015 DE0002731197 30,000,000 100.00 52.72 17.53 3.94 0.14 0.00 0.00
2017 DE0002731429 50,000,000 1,000.00 527.17 457.30 387.48 349.45 298.28 268.41
2017 DE0002731569 70,000,000 50,000.00 26,358.25 22,865.15 19,373.81 17,472.39 14,913.82 13,420.28
2015 DE000A0GF758
(ProPart Funding) 150,000,000 50,000.00 26,358.25 8,766.12 1,972.27 71.53 0.00 0.00
Final
Maturity ISIN
Total repayment
amount before
loss participation
in €
Repayment
amount
per security
before loss
participation
in €
Proportionate repayment amount of silent partner contributions per security
after loss participation
2007/08
in €
2008/09
in €
2009/10
in €
2010/11
in €
2011/12
in €
2012/13
in €
Open DE0007490724
(Capital Raising) 200,000,000 100.00 52.72 17.53 3.94 0.14 0.00 0.00
Open DE000A0AMCG6
(Hybrid Raising) 200,000,000 100.00 52.72 17.53 3.94 0.14 0.00 0.00
Fundamentally Transformed30
Stabilisation
Restructuring
Restoring Profitability
IKB today
2007 2010 20122008 2009 2011 2013 2014
Ring-fencing of structured investments
KfW stabilisation measures
Protecting franchise
Liquidity secured
Secured capital position
Cleaned-up asset base
Improved risk management
EU requirements practically fulfilled
Reduced costs
Realigned business model
Use of market potential
- From credit focus to client focus- Client base in line with potential
Efficient use of resources
- Funding: public programme loan schemes, syndication, deposits, repos
- Capital: securitisation, sale of risk assets, risk transfers to third parties
SoFFin-Guarantee Framework31
5.00
12.00
10.009.80 9.70 9.60 9.50
8.60
7.30
6.10
5.00
4.504.25
4.003.75
1.751.50
0.85 0.750.35
0.000,00
2,50
5,00
7,50
10,00
12,50
Dec2008
Aug2009
Feb2010
Nov2010
Dec2010
Feb2011
Mar2011
Apr2011
Aug2011
Jan2012
Mar2012
Mar2012
May2012
Aug2012
Aug2012
Sep2012
Sep2012
Oct2012
Oct2012
Nov2012
Dec2012
€ billion
early per day of maturity
Ca. € 343 million fee expenses in total
No restrictions in future due to early and full redemption, regarding:
- Tier 1 ratio (SoFFin)
- Restriction for repurchase of own liabilities (EU)
- Proprietary trading (EU)
12.50
10.00
7.50
5.00
2.50
0
SoFFin returns
Credit Volume in Western Europe by Risks – IKB Group (as at 31 Dec 2013)
Some totals may be subject to discrepancies due to rounding differences.1) Bank exposures in Spain and Italy contain primarily covered bonds 2) European Commission, European Financial Stability Facility (EFSF) and European Investment Bank
3) Portfolio investments of € 55 million by special purpose entities are included in the figure for Ireland
32
€ millionCredit volume
after risk mitigationthereof
public sector
thereof banks and
financial sector1)
thereof other counterparty
risks
UK 2,321 683 1,637 0
Italy 1,651 345 183 1,123
France 1,617 574 898 145
EU2) 1,609 0 945 663
Spain 1,358 474 640 244
Netherlands 420 105 210 106
Austria 316 49 94 173
Ireland3) 273 85 63 124
Switzerland 164 79 85 0
Finland 147 43 4 99
Denmark 97 0 7 91
Belgium 97 17 77 2
Portugal 64 39 25 0
Other 97 87 11 0
Total 10,231 2,580 4,881 2,770
Credit Volume by Region – IKB Group (as at 31 Dec 2013)
1) Hermes guarantees, indemnifications, risks transferred
33
31 Dec 2013in € million
31 Dec 2013in %
Germany 11,944 44
Outside Germany 12,497 46
Western Europe 10,231 38
Eastern Europe 1,145 4
North America 1,072 4
Other 48 0
Subtotal 24,440 91
Risk transferred to third parties1) 2,505 9
Total 26,945 100
EU Conditions of no further relevance 34
Balance Sheet Reduction of total assets to € 33.5 billion
Winding up non-strategic assets
Real Estate Finance
Discontinuation of new business
Reduction of portfolio
Closure of real estate related subsidiaries
International Operations
Liquidation of IKB Capital Corporation (N.Y.)
Closure of Amsterdam office
Closure of Luxemburg operations
Remaining Conditions Limited buyback of own liabilities
Limited proprietary trading
Reduction of Assets
Discontinuation of Operations
Winding Up of Certain Operations
Further Restrictions
35
Public programme loans
European development banks
Municipalities
amongst others
Public ProgrammeLoan Schemes
Global Loans
Special Products
Development Banks
On-lending Banks/‘Hausbank’
Corporate Customers
Enterpriseswith total sales of max.
€ 500 million (up to € 3,000 million
for selected programs)
andmunicipalities
respectively
16 state owneddevelopment banks
KfWgovernment owned
Offer funding at favourableconditions for investments eligible to public loan schemes
based on their AAA-Rating and public funds
Run the application process Get cheap funding if approved
and on-lend the programme to the borrower
Still bear the credit risk
get “cheaper money” get long-term financing need to make sure, that
investment is in adherence with the requirements of the Loan Programme
Selected Transactions (1)
Public programme loans Acquisition finance
Syndicate financing
36
Financier
Investment Financing by KfW Public
Programme Loans
Undisclosed
January 2014
Advisor & Financier
Investment Financing by KfW Public
Programme Loans
Undisclosed
February 2014
Financier
Investment Financing by KfW Public
Programme Loans
€ 13,500,000
February 2014
Financier
Investment Financing by KfW Public
Programme Loans
Undisclosed
December 2013
Mandated Lead Arranger
Leveraged Buy-out of ZellBios by DPE Deutsche Private
Equity GmbH
€ 125,000,000
February 2014
Lead Arranger
Refinancing and Acquisition of the ACP-Shares by 3i
€ 875,000,000
November 2013
MLA & Bookrunner
Senior Debt for the Majority Takeover of
Adler Modemärkte AG by steilmannHolding AG
€ 71,100,000
March 2013
Mandated Lead Arranger
Refinancing and Acquisition of NOCIBÈ
by Douglas/Advent
€ 530,000,000
November 2013
Senior Lead Arranger
Syndicated Loan
€ 980,000,000
January 2014
Lead Arranger
Syndicated Loan
€ 85,000,000
June 2013
Arranger
Syndicated Financing
€ 252,000,000
August 2013
Arranger & Agent
Syndicated KfWPublic Programme
Loan
€ 119,000,000
January 2013
MLA & Bookrunner
Syndicated KfWPublic Programme
Loan
€ 25,000,000
May 2013
Underwriter, MLA & Bookrunner
Syndicated Loan
€ 475,000,000
July 2012
MLA & Bookrunner
Syndicated Loan and Prime Standard Bond
€ 260,000,000
October 2012
Mandated Lead Arranger
Syndicated Loan
€ 500,000,000
July 2012
Selected Transactions (2)
Capital market solutions (equity, mezzanine) Capital market solutions (debt)
Advisory (M&A, restructuring, financial risk, corporate finance)
37
Sole Financial Advisor
Individual Mezzanine
Undisclosed
April 2013
Advisor & Arranger
Mezzanine Capital
Undisclosed
June 2012
Advisor & Arranger
Individual Mezzanine
€ 10,000,000
April 2011
Co-Bookrunner
High-Yield BondCoupon: 8.500%Maturity: 2019
€ 200,000,000
November 2013
Joint Bookrunner
Mid-Cap BondCoupon: 7.500%Maturity: 2018
€ 30,000,000
October 2013
Co-Manager
High-Yield BondCoupon: 7.750%Maturity: 2018
€ 250,000,000
September 2013
Arranger
Promissory Note LoanMaturities: 2015,
2016, 2017
€/$ 300,000,000
June 2013
M&A Advisor
Acquisition of backWERK
Undisclosed
January 2014
M&A Advisor
Advisory of the Shareholders on the
Sale
Undisclosed
March 2014
M&A Advisor
Sale of a Participation in a Wind Farm
Undisclosed
January 2013
M&A Advisor
Advisory of the Shareholders on the
Sale
Undisclosed
September 2012
M&A Advisor
Acquisition of Shares by Capital Increase
International Family Office
€ 25,000,000
May 2012
M&A Advisor
Advisory on the Purchase of DIHAG Group (discontinued)
Private Equity
Undisclosed
April 2012
M&A Advisor
Capital Increase by Entry of new Shareholders
Tricor Packaging & Logistics GmbH
Undisclosed
August 2011
M&A Advisor
Buy-side Mandate (for the German Market)
International Company, Paper and Packaging
Undisclosed
August 2011
Originator & Asset Servicer
Access to Mezzanine
Financing of VALINFUNDS
Undisclosed
December 2013
Contact38
Copyright:April 2014Publisher: IKB Deutsche Industriebank AG, Wilhelm-Bötzkes-Straße 1, 40474 Düsseldorf, GermanyLegal Form: AktiengesellschaftRegistered Office: DüsseldorfCommercial Register (Handelsregister): Amtsgericht Düsseldorf, HR B 1130Chairman of the Supervisory Board: Bruno ScherrerChairman of the Board of Managing Directors: Hans Jörg SchüttlerBoard of Managing Directors: Dr Dieter Glüder, Claus Momburg, Dr Michael H. Wiedmann
Bernd ClaußenHead of Treasury & Investments
IKB Deutsche Industriebank AGWilhelm-Bötzkes-Straße 140474 Düsseldorf, Germany
Telephone +49 211 8221-4044E-mail [email protected]
Dr Jörg ChittkaHead of Investor Relations
IKB Deutsche Industriebank AGWilhelm-Bötzkes-Straße 140474 Düsseldorf, Germany
Telephone +49 211 8221-4349E-mail [email protected]