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KfW presents itself Structure and mission of KfW As of April 2018

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Page 1: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself

Structure and mission of KfW

As of April 2018

Page 2: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 2

A bank with a wide array of functions

We promote

development

Promotion of

developing countries and

emerging economies

International business

We promote Germany

Promotion of housing construction

and refurbishment, improved

accessibility and education

Financing of municipal infrastructure

and global loans

Promotion of SMEs,

business founders,

start-ups

Domestic promotion

We support

internationalisation

International

export and project finance

Promotion of environmental and climate protection

Mittelstandsbank Kommunal- und

Privatkundenbank/Kreditinstitute

KfW IPEX-Bank KfW Development Bank,

DEG

Page 3: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 3

18 November 1948 Law Concerning KfW enters into force

Page 4: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 4

70 years of KfW Financing with a public mission

› Promotional bank of the Federal Republic of

Germany

› Established in 1948 as Kreditanstalt für

Wiederaufbau

› Shareholders: 80% Federal Republic,

20% federal states

› Headquarters: Frankfurt am Main

Branches: Berlin, Bonn and Cologne

› Representative offices: about 80 offices and

representations worldwide

› Balance sheet total 2017: EUR 472.3 billion

› Financing volume 2017: EUR 76.5 billion

› 6,113 employees (2017) 1

› Best long-term rating: Aaa/AAA/AAA

1) The average number of employees including temporary staff but

without members of the Executive Board and trainees

Page 5: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

1948 1950 1960 1970 1980 1990 2000 2010 2013 2014 2016

5 KfW presents itself / April 2018

Tiflis

Yerevan

Amman

Kampala

Windhoek

Pretoria

Lusaka

Skopje Ankara

Kyiv Belgrad

Priština Sarajevo

Tirana

Berlin

Frankfurt

Istanbul

London

Brussels

Cologne

Podgorica

Bonn

Cairo

Ramallah-Al-Bireh

Addis Abeba

Kigali

Rabat

Dakar

Accra

Ouagadougou

Yaoundé

Bamako

Cotonou

Kinshasa

Niamey Manila

Baku Beijing

Jakarta

Kabul Islamabad

Ulan Bator

Hanoi Dhaka

Bishkek Tashkent

Dushanbe

Bangkok

Phnom Phen

Kathmandu New Delhi

Mumbai

Moscow

Lima

La Paz Brasilia

Managua

Tegucigalpa

Mexico City

São Paulo

Quito

Bogotá

Guatemala City

New York

Sanaa

Maputo

Daressalam

Lilongwe

Abu Dhabi

Johannesburg

Nairobi

San Salvador

Singapore

Bujumbura

Rangoon

Tunis

Mazar-e-Sharif

Vientiane

Ho Chi Minh City

Chişinău

Lomé

Worldwide presence about 80 representative offices

KfW employees 6,104

Beirut

Page 6: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 6

Proven and successful business model

Customer Financing

partner

Capital

market

Institution owned by

Federal Republic

and federal states

State liability

Backed by Understanding II

reached with EU Commission

Defined by KfW Law

Promotional mandate

Page 7: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 7

Neutrality through on-lending principle in lending business No branch network of our own

Submits loan

application with

regular bank before

start of investment

Financing

partner Customer

If approved, customer‘s

bank forwards application

to KfW

Enters into the loan

agreement and

disburses the loan

Refinances the loan at

favourable refinancing

interest rates

Page 8: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 8

Germany and Europe face challenges from megatrends

Climate change and the environment, globalisation, digitalisation and social change – we face great

challenges today. KfW is one of the world‘s leading promotional banks. It applies its decades of

experience on behalf of the federal government and the federal states to improve the economic,

social and ecological living conditions around the world.

Globalisation

Climate change and

environment

Social change

Digitalisation and

innovation

Page 9: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 9

Domestic promotion: We support Germany Mittelstandsbank

We finance SMEs so that the German economy remains strong.

Target group Commercial enterprises, start-ups, self-employed professionals

Total volume

of promotion

2016

EUR 21.4 billion

Financing

products

Medium and long-term financing for

› Start-ups and business founders

› General corporate finance

› Innovation

› Climate and environmental protection

Page 10: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 10

Domestic promotion: We support Germany Kommunal- und Privatkundenbank/Kreditinstitute (1)

We finance investments in the future by people in Germany.

Target group Private individuals

Total volume

of promotion

2016

EUR 23.1 billion

Financing

products

› Energy-efficient construction and refurbishment

› Reducing barriers in existing residential buildings

› Creating residential property

› Education

Page 11: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 11

Domestic promotion: We support Germany Kommunal- und Privatkundenbank/Kreditinstitute (2)

We finance municipal and social infrastructures in order to advance structural

change.

Target group Local and municipal authorities, municipal enterprises and social institutions

Promotional

business

volume 2016

EUR 4.1 billion

Financing

products

› Municipal and social infrastructure projects

› Municipal energy supply

› Urban energy-efficient rehabilitation

› Improving accessibility in public areas

Page 12: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 12

Domestic promotion: We support Germany Kommunal- und Privatkundenbank/Kreditinstitute (3)

We refinance promotional and commercial banks in Germany and Europe.

Target group Promotional institutions of the federal states/Credit institutions

Promotional

business

volume 2016

EUR 6.5 billion*

Financing

products

› For promotional institutions of the federal states:

› General funding

› Programme-based global loans

› For commercial and European promotional banks:

› Earmarked individual and global loans for the funding of specific long-term

sustainability issues

› Structured products

* not including programme-based global loans

Page 13: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 13

International business: We ensure internationalisation International Export and project finance (KfW IPEX-Bank)

We finance projects of German and European companies so they can compete in

global markets.

Target group Large and medium-sized companies conducting international business (PEAs for

large-scale investments in infrastructure, environmental and climate protection)

Volume of

commitments

2016

EUR 16.1 billion

Financing

priorities

Medium and long-term structured financings for

› Export finance (incl. trade finance) and other financing for specific purposes

of export companies

› Maintenance and expansion of German and European infrastructure

including corresponding means of transport

› Climate and environmental protection projects

› Securing German and European raw material supplies

› Foreign investments of German companies

Page 14: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 14

International business: We promote development KfW Development Bank

We promote economic and social progress in developing and emerging

countries to improve people's lives.

Task

› As the development bank of the German Federal Government, we provide

support and advice for reform processes and investments in developing and

emerging countries

Objectives

› Sustainably improve economic and social conditions

› Poverty reduction

› Climate and environmental protection

› Promote the financial sector

Promotional

business

volume 2016

EUR 7.3 billion

Partners › Governments, other governmental and non-governmental institutions in

developing and emerging countries, and bilateral and multilateral donors

Page 15: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 15

International business: Promote entrepreneurship -

facilitate development DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

DEG is a reliable partner to private companies investing in developing countries

and emerging economies.

Task › As development financier for the private sector we finance, advise and

support private businesses operating in developing and emerging countries

Objectives

› Expand private sector structures through the financing of investments that

contribute to local value creation in the long term

› Sustainable development that creates qualified jobs and income, improves

living conditions and opens opportunities

Partners › Companies investing in developing countries and emerging economies

Promotional

business

volume 2016

EUR 1.6 billion

Page 16: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

16 KfW presents itself / April 2018

Funding KfW is one of the world’s biggest and most active bond issuers on the

international capital markets.

› Funding takes place almost completely on the

international money and capital markets, particularly in

euros and US dollars. Other important currencies are the

British pound, the Australian dollar and the Japanese yen.

› The offer of different currencies, maturities and structures

is targeted in particular at institutional investors.

› KfW bonds are also an important asset class for

sustainable investors, as KfW gets excellent ratings from

independent sustainability rating agencies.

› “Green Bonds – Made by KfW” are designed to offer

investors the possibility to invest in climate protection and

provide impetus for fostering environmental protection

activities.

› Issuing planned for 2017: ~ EUR 75 billion

Triple-A-Rating of KfW bonds

Excellent sustainability rating

Awards

Best

Supranational

and Agency

Deal in Euros

-Most Impressive

Government Agency

Green/SRI Bond Issuer

-Best Green/SRI Issuer

for Transparency of

Pre-Deal Information

-Best Overall Issuer

-Best SSA Issuer

-Best Uridashi Issuer

-Best Overall ECP Issuer

The World‘s

Safest Bank

TOP 4 of 43 German

financial institutions

"Prime " Second

of 396 banks

per 31.12.2016

Page 17: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

17 KfW presents itself / April 2018

Executive and advisory bodies Composition

Advisory Council for Promotional

Measures in Eastern Germany

(currently inactive)

Mittelstandsrat

(SME Advisory Council)

Board of Supervisory Directors oversees the conduct of business &

asset administration

Executive Board conducts KfW’s business and

administers its assets

Presidial and

Nomination

Committee

Remuneration

Committee

Audit

Committee

Advisory bodies Executive bodies

Risk and

Credit

Committee

Page 18: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

18 KfW presents itself / April 2018

Executive Board

Dr Ingrid Hengster Dr Günther Bräunig

(CEO) Bernd Loewen

Dr Stefan Peiß Prof Dr Joachim Nagel

Page 19: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

19 KfW presents itself / April 2018

Board of Supervisory Directors Function and composition

› Constantly supervises the

conduct of business and the

administration of assets

› Approves the annual financial

statements

› Appoints auditors

› Confers powers upon

committees

› Presidial and Nomination

Committee

› Remuneration Committee

› Risk and Credit Committee

› Audit Committee

Chairman and Deputy Chairman

› Federal Minister of Finance and the Federal Minister for Economic

Affairs and Energy in alternation

37 members

› Federal ministers specified in the Law Concerning KfW

(KfW Law)

› Members appointed by the Bundestag and Bundesrat

› Representatives of banks and savings banks

› Representatives of industry, the municipalities, agriculture,

commerce, handicrafts, housing and the trade unions

Tasks Board members

Page 20: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 20

Mittelstandsrat (SME Advisory Council) Function and composition

› Concretises the public mission

of Mittelstandsbank

› Deliberates and decides on

proposals for the promotion of

small and medium-sized

enterprises on the basis of the

overall business planning of

KfW Group

Chairman

› Federal Minister for Economic Affairs and Energy

Deputy Chairman

› Federal Minister of Finance

Further Members

› The commissioner of the Federal Government for the new federal

states (eastern Germany)

› Two representatives appointed by the Bundesrat

› Four other members appointed by the Federal Ministry for

Economic Affairs and Energy

› One member appointed by the Federal Minister of Finance

› One member appointed by the Minister for the Environment,

Nature Conservation, Building and Nuclear Safety

Tasks Council Members

Page 21: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

Strategic investments

Capital shares as of 31 March 2018

1 non-profit

2 holding arrangement

3 participation in Airbus SE – former

EADS – around 11% of voting rights

(mandated transaction in accordance

with Article 2 (4) of the KfW Law)

Berliner

Energie-

Agentur

GmbH

(BEA)

(25 %)

Deutsche

Energie-

Agentur

GmbH

(dena)

(26 %)

True Sale

International

GmbH

(TSI)

(7.7 %)

European

Investment

Fund

(EIF)

(2.3 %)

Deutsche

Post

AG2

(20.6 %)

Deutsche

Telekom

AG2

(17.4 %)

KfW

IPEX-Bank

GmbH

(100 %)

AKA

Ausfuhrkredit

GmbH

(0.21 %)

KfW

Beteiligungs-

holding

GmbH

(100 %)

GZBV

Verwaltungs-

GmbH3

(100 %)

GZBV

mbH &

Co. KG3

(84.3 %)

DEG mbH1

(100 %)

FuB

GmbH

(100 %)

tbg GmbH

(100 %)

KfW presents itself / April 2018 21

Page 22: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

22 KfW presents itself / April 2018

Headquarters of KfW Group in Frankfurt http://campus.kfw.de

1949 Work begins at Gutleutstrasse 40

1968 Move to Palmengartenstrasse

19872016 Progressive construction of the

campus

1987: North and South Arcades

2002: East Arcade

2010: West Arcade

2011: Senckenberganlage

2012: „Villa 102“

2016: Bockenheimer Landstrasse 104

3,395 employees are currently

working in KfW’s own as well as in

leased premises

KfW’s own buildings are featuring a

high environmental standard and

were awarded several prizes

KfW Group Palmengartenstrasse 5-9

60325 Frankfurt

Germany

Page 23: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 23

Berlin branch

1949 bis 1989 Headquarters of the Central Bank

of the GDR (“Staatsbank”)

1990 “Staatsbank Berlin” founded to

wind up the Central Bank of the

GDR (“Staatsbank der DDR”)

1994 Staatsbank Berlin with all

employees and tasks transferred

to KfW

2001 Branch office opened at

Gendarmenmarkt

KfW Niederlassung Berlin

Charlottenstrasse 33

10117 Berlin

Germany

Page 24: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 24

Bonn branch

1950 Foundation of the

“Vertriebenen Bank AG”

1954 Transformation into a public law

institution named

“Lastenausgleichsbank”

1986 Renamed as

Deutsche Ausgleichsbank (DtA)

2003 Merged with KfW

KfW Niederlassung Bonn

Ludwig-Erhard-Platz 1-3

53179 Bonn

Germany

Page 25: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

KfW presents itself / April 2018 25

DEG Deutsche Investitions- und Entwicklungsgesellschaft mbH

1962 Founded as a state-owned company

Since June 2001 100% subsidiary of KfW Group

To date Promoted approx. 3,200 companies

in developing countries

2016 Volume of financing around

EUR 1.6 billion

DEG Kämmergasse 22

50676 Cologne

Germany

Page 26: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

26 26

› Independent non-profit foundation under civil law

› Established in October 2012

› Endowment capital: EUR 20 million

› Mission: Give impetus for tackling social challenges

› Climate and environmental protection

› Demographic change

› Globalisation

› In the focus: responsible entrepreneurship, social

commitment, climate and environmental protection,

arts and culture

› Activities of KfW Stiftung: projects encouraging replication

› Future event location of KfW Stiftung: the ancient

"Frankfurt House of Literature"

Villa 102

KfW presents itself / April 2018 26

KfW Stiftung Taking responsibility – promoting diversity

Page 27: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

27

KfW Stiftung Fields of activity

Climate and Environment

› Senckenberg Museum of

Natural History

› Frankfurt botanical garden

› Frankfurt Zoo

› Southern African Wildlife

College

› “Viele gestalten Vielfalt“

› KfW Bernhard Grzimek Prize

› Spring School: Conservation

Project Management

› Promoting the protection of

climate and environment

› Raising awareness for

conservation of biodiversity

Responsible

Entrepreneurship

› Social Impact Labs Frankfurt

and Duisburg

› ANKOMMER.Perspektive

Deutschland

› Special Impact Award

› Social Business Women e.V./

Offenbach

› Social Entrepreneurship

Akademie / Munich

› Creating the infrastructure

to resolve societal problems

by means of economic

activity

Social Commitment

› Manege GmbH in the Berlin

Don Bosco Centre

› Support association

Mädchenbüro with refugee

café Milena

› Landessportbund Hessen

› Special Olympics Germany

e.V.

› EVIM / Schlocker-Stiftung /

Hattersheim

› Fostering the enabling of

inclusion and social

participation

Arts and Culture

› Artists in Residence

› Curators in Residence

› Beirut Short Stories“

› TRANScuratorial Academy

Berlin und Mumbai

› “Ruang Suara“ at Holland

Festival - contemporary

music from Indonesia

› Think Tank – transdisciplinary

workshop

› Promoting intercultural dia-

logue with cultural produ-

cers from Africa, Asia, La-

tin America, the Near East

27 KfW presents itself / April 2018

Project samples:

Page 28: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

28 KfW presents itself / April 2018

Photo credits/references

Titel slide: full-page image / KfW / Stephan Sperl

Slide 3: KfW, Historical Group Archive / -

Slide 4: KfW, Historical Group Archive / Walter Hoffmann

Slide 8, Picture 1: KfW Photo Archive / Holger Peters

Slide 8, Picture 2: Fotolia.com/Nataliya Hora

Slide 8, Picture 3: KfW Photo Archive / Charlie Fawell

Slide 8, Picture 4: KfW Photo Archive / photothek.net

Slide 18: Dr Bräunig: KfW Photo Archive / Rüdiger Nehmzow

Dr Hengster: KfW Photo Archive / Rüdiger Nehmzow

Mr Loewen: KfW Photo Archive / Rüdiger Nehmzow

Prof Dr Nagel: KfW Photo Archive / Heinrich Völkel, OSTKREUZ

Dr Peiss: KfW Photo Archive / Rüdiger Nehmzow

Slide 22: http://campus.kfw.de

Slide 23: KfW Photo Archive / Angelika Kohlmeier

Slide 24: KfW Photo Archive / -

Slide 25: DEG / Andreas Huppertz

Slide 26: Jens Steingässer

Slide 27, Picture 1: KfW Stiftung / Felicitas Nadwornicek

Slide 27, Picture 2: KfW Stiftung / Frank Blümler

Slide 27, Picture 3: KfW Stiftung / Stephan Daub

Slide 27, Picture 4: KfW Stiftung / Katrin Schilling

Final slide: full-page image/ KfW/ Stephan Sperl

Page 29: KfW presents itself Paz Brasilia Managua Tegucigalpa Mexico City São Paulo Quito ...  1949 Work begins at Gutleutstrasse 40 1968 Move to Palmengartenstrasse

Thank you for your attention.