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DVB's current Corporate Presentation gives you a general overview of DVB's ...

DVB's current Corporate Presentation gives you a general overview of DVB's

- Key facts
- Success story
- Group financials
- Development of the Transport Finance portfolio
- Client structure and accolades
- Own funds
- Outlook

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Corporate Presentation, September 2014 Presentation Transcript

  • 1. Slide 1 Frankfurt/Main, September 2014 DVB Group – Corporate Presentation
  • 2. Slide 2 Preliminary remarks All statements made regarding net worth, financial position & results relate to DVB Group. All amounts are disclosed in euro and on the basis of IFRS/IAS if not stated otherwise. Unless indicated otherwise, all financial data apply to 30 June 2012 and have been reviewed by auditors.
  • 3. Slide 3 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 4. Slide 4 DVB’s mission statement Corporate Presentation, September 2014 | Key facts about DVB At DVB, we make deals work. This means striving to seek and develop intelligent and appropriate solutions that meet and even exceed our clients’ needs and expectations. We go the extra mile to constantly and thoroughly research and study our industry. Often, this leads us to challenge conventional wisdom when offering our focused range of financing services. The leading specialist in international transport finance
  • 5. Slide 5 DVB’s unique business model Corporate Presentation, September 2014 | Key facts about DVB Asset & Market Research Shipping Finance Aviation Finance Land Transport Finance Offshore Finance Structured Asset Financing Private Equity Sourcing & Investments Risk Distribution Advisory Services Loan Participations Equity & Debt Capital Markets Asset Management Client Account
  • 6. Slide 6 Land Transport Finance  Rail rolling stock DVB’s business areas and products Corporate Presentation, September 2014 | Key facts about DVB Asset & Market Research Business divisions Shipping Finance Aviation Finance Land Transport Finance Offshore Finance Investment Management Products and services Structured Asset Financing Risk Distribution Advisory Services Equity & Debt Capital Markets Client Account Structured Asset Financing Risk Distribution Advisory Services Equity & Debt Capital Markets Aviation Asset Management Aero Engine Financing & Engine Asset Management Client Account Structured Asset Financing Risk Distribution Advisory Services Equity & Debt Capital Markets Client Account Structured Asset Financing Risk Distribution Advisory Services Equity & Debt Capital Markets Client Account Private Equity Sourcing & Investments Loan Participations (senior asset-based lending) Business areas Sector groups: Container, Car Carrier, Intermodal & Ferry Tanker Dry Bulk  Passenger aircraft Freighter aircraft Aircraft engines  Rail rolling stock  Offshore support vessels (PSVs and AHTSs) Subsea & construction vessels Seismic vessels Accommodation units Offshore drilling equipment Floating production units (FPSOs) Fund management: Shipping & Intermodal Investment Management Aviation Investment Management Interbank market ITF Suisse
  • 7. Slide 7 DVB’s ten competitive strengths Corporate Presentation, September 2014 | Key facts about DVB Business model – clearly focused, distinctively specialised, cycle-neutral and international in scope Business policy – conservative and sustainable Organisation – transparent structures, swift information flow and prompt decision-making Human resources – highly specialised and experienced Products & services – customised and beyond the typical scope of banking Asset & Market Research – sophisticated, renowned and award-winning Credit portfolio – diversified by multiple criteria and categories Risk management – consistent and forward-thinking Funding – maturity matched Own funds – strong capital base
  • 8. Slide 8 DVB’s SWOT analysis Corporate Presentation, September 2014 | Key facts about DVB  Unique business model with a clear focus, cycle-neutral business approach and global presence in all key transport markets  Conservative and sustainable business policy  Flat hierarchies, high degree of flexibility and lean decision-making  Highly qualified and experienced staff  Customised products and services, high level of client service and close contacts to manufacturers and leasing companies  Extensive market and asset expertise  Credit portfolio diversified by multiple criteria and categories  Advanced risk management and pricing systems  Maturity matched funding  Strong capital base due to own funds  Relatively high sector exposure  Global presence requires high staff resources  High staff costs due to high levels of employee qualification in terms of academic expertise and experience  No material client deposits  Dependence on the money and capital markets  Exposure to the euro/US dollar exchange rate, with an impact on growth and results  Realisation of margins in line with risks taken  Expansion of anti-cyclical Investment Management activities  Building new client relationships  Funding available through the extensive liquidity offered by the German Cooperative Financial Services Network  Expanding the advisory and other services offered to clients, investors, and banks  Boosting our reputation as a reliable partner to the international transport industry Strengths Weaknesses Opportunities Threats  Distortions on the money and capital markets, in the broadest sense  Decline in transport asset values, in various market segments  Impact of the global financial markets crisis and the sovereign debt crisis in Europe  Increasing debt levels in some industrial countries and emerging markets  Unanticipated rise of the US dollar against the euro  Further government support for DVB's bank competitors growing regulatory requirements  Spikes in crude oil prices
  • 9. Slide 9 Shipping Finance – Specific sector expertise Corporate Presentation, September 2014 | Key facts about DVB Container, Car Carrier, Intermodal & Ferry Group (container vessels, container boxes, car carriers, reefers, ferries and RoRo’s) 1 Cruise Group  portfolio to be phased out (ocean/river cruise) 2 Tanker Group (crude oil and LNG1 tankers as well as chemical, specialist, LPG2, product and asphalt/bitumen tankers) 3 Dry Bulk Group (dry cargo, combination and bulk carriers) 1 Liquefied Natural Gas 2 Liquefied Petroleum Gas
  • 10. Slide 10 Shipping Finance strategy – Specific sector expertise Our sector approach translates into a broad and profound coverage of the unique shipping sectors. Our Shipping Finance portfolio is strongly diversified across sectors and geographic regions. We thoroughly analyse and continuously track the vessels financed from the yard to the scrapyard. We further ingrained risk management in the process, supported by the complete involvement of research and risk management throughout the life cycle of a loan. This enables us to collect and amass in-depth knowledge of the assets, clients, value-chains, cargo flows and networks in the distinct sectors. We like to take the performance to the next level and assure continued sustainable success. This approach and our commitment bring us closer to our clients, and has solidified our reputation as a trusted partner in the shipping industry. Our mission statement: We support our shipping clients with customised financing solutions in the sectors we cover. Our sector-specific know-how encompasses different vessel types, value-creation chains, freight flows and networks. Thus, we are in the position to anticipate trends on the shipping markets – often ahead of our competitors. This means that we adapt our risk management to changed market conditions, and act as a reliable partner to the shipping industry for the long term through the cycles of the shipping markets. Corporate Presentation, September 2014 | Key facts about DVB
  • 11. Slide 11 Aviation Finance strategy – Integrated platform solutions Corporate Presentation, September 2014 | Key facts about DVB Our cycle-neutral business model is in line with our mission statement: To be able, as a hybrid institution, at any period in time and at any point along the industry cycle, to provide our customers with the most efficient blend of capital and services. We feature a unique platform of Aviation Finance services and products employing specifically skilled individuals. We are willing to assume residual value risks – based on in-depth research and market/asset knowledge. We take a proactive approach to maintaining and growing our portfolio. We increase our efficiency further to stay ahead of our competitors. We like to ensure that our distinctive features are fully recognised and valued. We continually develop our asset-oriented lending practice to profitably expand our business.
  • 12. Slide 12 Aviation Finance – Integrated platform solutions Corporate Presentation, September 2014 | Key facts about DVB Structured Asset Financing Advisory Services Aviation Asset Management Aero Engine Financing & Engine Asset Management Private Equity Sourcing and Investments Risk Distribution Asset & Market Research Equity & Debt Capital Markets Aviation Relationship & Lending
  • 13. Slide 13 Offshore Finance – Highly specialised industry Corporate Presentation, September 2014 | Key facts about DVB The offshore industry is highly specialised – so is DVB’s Offshore Finance division. The team facilitates a unique industry focus and specialisation model which has earned us a high market reputation. Offshore Finance provides debt financing and financial solutions to our clients. We have been mandated to structure offshore transactions and we often act as agent on many syndicated loans to the offshore industry. As we maintain strategic relations with most our clients, we are able to discuss company-specific strategic alternatives with them, offering added -value services like Advisory and M&A. Our clients within the offshore industry range from larger listed public corporations to medium-sized private companies, the majority of which is concentrated in the offshore hubs of Europe, the Americas, the Middle East and Asia. Clients and prospective clients are serviced from four different locations: Singapore, New York and Bergen/Oslo. Our mission statement: Through close relations with our clients and detailed knowledge of their specialised industry and equipment, we provide value added and integrated financial solutions to meet clients’ strategic needs to optimise debt and equity financings.
  • 14. Slide 14 We have a clear mission statement: We highly value our client relationships. The goal is to increase our client franchise as the leading rail asset financing partner in our core regions. Based on our we offer added value by unique understanding of the market, focus, capacity to execute, and flexibility advising on intelligent asset finance solutions, and taking appropriate risk positions that capitalise on the cyclical nature of the underlying sectors. Land Transport Finance – Consistent client franchise Corporate Presentation, September 2014 | Key facts about DVB
  • 15. Slide 15 Investment Management – Funds and equity sourcing Fund initiator, investment adviser and asset manager in the market for closed-end funds in the international transport sector Management function on behalf of third parties, but with material equity risk exposure to be assumed by DVB Shipping & Intermodal Investment Management: Development and holding of a diversified portfolio Investors profit from DVB’s asset know-how and strong market penetration. Aviation Investment Management: Opportunity-driven funds with short- to medium-term strategy Corporate Presentation, September 2014 | Key facts about DVB
  • 16. Slide 16 ITF Suisse – Business model Asset & Market Research via inter- bank market Senior asset-based lending in form of participations Aviation Land Transport Shipping Offshore Corporate Presentation, September 2014 | Key facts about DVB
  • 17. Slide 17 DVB’s global coverage Shipping Finance Aviation Finance Offshore Finance AMERICA EUROPE ASIA/PACIFIC New York Curaçao Singapore Tokyo Hamburg Frankfurt/Main Zurich Bergen Oslo Athens Amsterdam London Land Transport Finance Corporate Presentation, September 2014 | Key facts about DVB
  • 18. Slide 18 Operational legal structure (including subsidiaries, principal branches and representative offices) Subsidiaries of DVB (each 100%) Branches and representative offices of DVB ITF International Transport Finance Suisse AG, Zurich, Switzerland LogPay Financial Services GmbH, Eschborn, Germany  LogPay Transport Services GmbH, Eschborn, Germany DVB Bank SE, Amsterdam Branch, The Netherlands DVB Bank SE, London Branch, United Kingdom DVB Bank SE, Nordic Branch, Bergen/Oslo, Norway DVB Bank SE, Representative Office Greece, Athens, Greece DVB Bank SE, Hamburg Office, Germany DVB Transport Finance Ltd, London, United Kingdom  DVB Transport Finance Ltd, Tokyo Branch, Japan DVB Bank America N.V., Willemstad, Curaçao DVB Group Merchant Bank (Asia) Ltd, Singapore Corporate Presentation, September 2014 | Key facts about DVB DVB Capital Markets LLC, New York, USA DVB Transport (US) LLC, New York, USA
  • 19. Slide 19 Two-tier management system Board of Managing Directors  Management body  Corporate strategy  Controlling  Risk Management  Compliance  Preparation of the financial statements and management reports Supervisory Board  Supervising body  Examination, confirmation/approval of financial statements and resolutions  Members: six shareholder representatives three employee representatives  Credit Committee Executive Committee  Four scheduled meetings per year  Each share carries one vote.  Resolutions on e. g. the profit appropriation, changes of the Memorandum and Articles of Association as well as legal transactions requiring approval  Appointment of the shareholder representatives on the Supervisory Board and of the auditor General Meeting close co-operation to the benefit of the enterprise reports to advises, approves, controls, appoints, dismisses reports to formally approves of reports to formally approves of Corporate Presentation, September 2014 | Key facts about DVB
  • 20. Slide 20 * 40% share of capital Responsibilities of Board of Managing Directors Corporate Presentation, September 2014 | Key facts about DVB Client areas in divisions Shipping and Offshore Credit Aviation Credit Land Transport Credit Strategic Management and Restructuring Shipping and Offshore Research Aviation Research Land Transport Research Financial Institutions Corporate Development Group Shipping Finance Offshore Finance DVB Corporate Finance Shipping & Intermodal Investment Management Shipping Execution Management Aviation Finance Aviation Asset Management Aviation Financial Consultancy Aviation Investment Management Land Transport Finance Client areas at affiliates LogPay Financial Services GmbH ITF International Transport Finance Suisse AG DVB Capital Markets LLC DVB Transport Finance Ltd TES Holdings Ltd* Product/service areas Group Legal Group Human Resources Group Risk Management Group Controlling Group Corporate Communi- cations Group Compliance Office Group Operations Group Finance Group Audit Group Treasury Wolfgang F. Driese Ralf Bedranowsky Bertrand Grabowski
  • 21. Slide 21 Current shareholder base 95.45% Other shareholders 4.55% Corporate Presentation, September 2014 | Key facts about DVB
  • 22. Slide 22 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 23. Slide 23 Development of business areas and products Year Development 1998 Acquisition of LTCB’s Shipping & Aviation portfolio  Formation of first foreign offices  First outsourcing of non-core activities: securities settlements  1999 First external rating (S&P and Moody’s)  Establishment of International Rail Finance (Frankfurt/Main)  Representative office Tokyo  Closure of nine domestic branches  2000 Acquisition of Nedship Bank  Closing of remaining domestic branches  Non-core domestic lending compiled in special exit unit  Sale of DVB Processing GmbH  2001 Start of Corporate Finance  Kick-off Internal Rating Model (Basel II)  Establishment of Shipping Research  2002 Rail Finance Team (New York)  Central bank function for Sparda banks  Streamlining of head office operations  Sale of shareholding in Union Asset Management Holding  2003 Formation of Container Box Unit in Shipping  Establishment of Aviation Research  Introduction risk-bearing concept  Sale of ReiseBank Group  Year Development 2004 Establishment of AERO Engine Finance Unit  2005 Establishment of Cruise Finance Unit in Shipping  2006 Establishment of DVB Capital Markets in New York  Establishment of FPSO Unit in Shipping  Establishment of Aviation Asset Management  Establishment of Land Transport Research  Withdrawal from the Transport Infrastructure segment  2007 Major share of TES Holdings Ltd  Founding of ITF Suisse AG, Zurich  Expansion of Investment Management activities with railway and cruise funds  2008 Merger of DVB Bank N.V. & DVB Bank AG and change of corporate name to DVB Bank SE  “Sectorisation” in Shipping  Establishment of Shipping Asset Management  2009 Merging Shipping & Intermodal Investment Management activities under SIIM  2010 Establishment of Financial Institutions  Issuance of DVB’s first ship covered bond  2011 Merger of Restructuring Unit Shipping & Shipping Asset Management into Restructuring & Asset Management (RAM)  2012 Prestigious investors found: sale of a 60% stake in TES Holdings Ltd to Japanese investors  2013 Offshore Finance and Client Account established  2014 Formation of Tanker Group in Shipping incorporating two former tanker segments  Typical German commercial bank; small, unsustainable business model; no particular strength Product range: Central bank function for Sparda banks, domestic corporate lending business, freight management, securities trading, trading in foreign notes and coins/precious metals, payment transactions, various shareholdings e.g. ReiseBank 1997 Corporate Presentation, September 2014 | Journey of success since 1997
  • 24. Slide 24 Total assets and customer lending 1) German Commercial Code (HGB) 2) Aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments and derivatives – nominal volume Total assets [€ bn] 5.3 6.6 6.9 9.5 11.0 9.3 9.1 9.3 10.9 11.1 13.2 17.4 17.3 19.3 22.0 23.8 23.4 1997 1999 2001 2003 2005 2007 2009 2011 31 Dec 2013 +342% IFRS HGB1) Customer lending2) [€ bn] 2.0 3.0 4.2 7.7 8.6 8.0 7.6 8.2 10.8 12.0 14.4 18.5 17.3 19.2 21.7 22.2 20.8 1997 1999 2001 2003 2005 2007 2009 2011 31 Dec 2013 +940% Corporate Presentation, September 2014 | Journey of success since 1997
  • 25. Slide 25 Operating profit/consolidated net income before taxes 1.9 6.7 22.8 35.7 36.1 47.0 44.8 51.8 58.5 101.5 118.7 100.2 86.6 131.1 147.7 141.4 123.8 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 +6,416% IFRS HGB1) Conversion completed [€ mn] 1) German Commercial Code (HGB) Corporate Presentation, September 2014 | Journey of success since 1997
  • 26. Slide 26 Development of business volume & consolidated net income before taxes 17.3 19.3 22.0 23.8 23.4 1.8 1.9 1.9 1.3 1.2 76.1 104.0 110.4 124.9 110.2 0 20 40 60 80 100 120 140 0 10 20 30 40 50 2009 2010 2011 2012 2013 Total assets Contingent liabilities Consolidated net income [€ bn] [€ mn] Corporate Presentation, September 2014 | Journey of success since 1997
  • 27. Slide 27 Development of DVB share price 1) SX7E = Dow Jones Euro Stoxx Bank Index; Source: Bloomberg DVB GF Equity [€] SX7E Index [points] DVB GF Equity Last Price €24.60 SX7E Index1) Last Price 141.30 points 30 Dec 2013 5 10 15 20 25 30 50 100 150 200 250 300 350 400 450 500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Corporate Presentation, September 2014 | Journey of success since 1997
  • 28. Slide 28 Payout ratio 27.9 27.9 27.9 27.9 27.9 46.7 77.3 79.2 98.7 82.8 74.6 105.2 107.1 126.6 110.7 37.4 26.5 26.0 22.0 25.2 0 5 10 15 20 25 30 35 40 0 20 40 60 80 100 120 140 160 180 2009 2010 2011 2012 2013 Distributable profit of DVB Bank SE Transfer to retained earnings Consolidated net income attributable to shareholders of DVB Bank SE Payout ratio [€ mn] [%] Corporate Presentation, September 2014 | Journey of success since 1997
  • 29. Slide 29 Market capitalisation and dividends 1) Previous years’ figures adjusted in order to reflect the 10-for-1 share split carried out on 15 November 2008 178 177 212 306 270 240 264 314 709 811 1,123 1,213 1,162 1,162 1,113 1,127 1,143 0.84 0.26 0.36 0.36 0.15 0.15 0.20 0.20 0.23 0.30 0.50 0.60 0.60 0.60 0.60 0.60 0.60 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 0 200 400 600 800 1.000 1.200 1.400 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dividends [€]1) Market capitalisation [€ mn] 1,400 1,200 1,000 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Corporate Presentation, September 2014 | Journey of success since 1997
  • 30. Slide 30 Rating development Long-term issuer default rating Short-term issuer default rating 1) Long-term counterparty credit rating Short-term credit rating Outlook Debt Issuance Programme: Long-term senior unsecured Short-term senior unsecured Jan 2009 Aug 2006 Dec 2006 A+ F1+ A+ F1 A A-1 negative A- A-2 positive A A-1 stable Dec 2011 A+ A-1 stable Aug 2012 A+ F1+ A+ F1+ Mar 2011 A A-1 stable Jan 2009 Jun 2009 1) Within the scope of the German Co-operative Financial Services Network’s Rating Corporate Presentation, September 2014 | Journey of success since 1997
  • 31. Slide 31 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 32. Slide 32 DVB’s success factors in 2014 Focussed asset financing bank 1 Profitable throughout all cycles Well-diversified portfolio 2 Strong capital, Basel III compliant 3 Matched funding 4 Built on DVB’s core risk management function 5 Experienced personnel 6 Corporate Presentation, September 2014 | Financials
  • 33. Slide 33 At a glance – Income statement [IFRS] 1 Jan 2014− 30 Jun 2014 1 Jan 2013− 30 Jun 2013 % Net interest income Allowance for credit losses Net interest income after allowance for credit losses Net fee and commission income Results from investments in companies accounted for using the equity method General administrative expenses Net other operating income/expenses Consolidated net income before IAS 39 and taxes Net result from financial instruments in acc. with IAS 39 Consolidated net income before taxes Consolidated net income (after taxes) €105.0 mn €-27.9 mn €77.1 mn €51.0 mn €0.3 mn €-91.7 mn €2.3 mn €39.0 mn €2.4 mn €41.4 mn €31.7 mn €116.2 mn €-28.4 mn €87.8 mn €55.7 mn €-0.5 mn €-86.2 mn €6.5 mn €63.3 mn €3.1 mn €66.4 mn €57.9 mn -9.6 -1.8 -12.2 -8.4 _ 6.4 -64.6 -38.4 -22.6 -37.7 -45.3 Corporate Presentation, September 2014 | Financials
  • 34. Slide 34 Development of key ratios Cost/income ratio [%] Return on equity before taxes [%] 6.5 11.0 30 Jun 2014 30 Jun 2013 57.0 47.6 30 Jun 2014 30 Jun 2013 ielwert ≤ 50 % Corporate Presentation, September 2014 | Financials Target value 50% Target value for 2014: 10–12%
  • 35. Slide 35 Financial calender 2014 at the latest 14 November Interim Management Statement during the second half of 2014 (for the first nine months ending 30 September 2014) 13th Declaration of Compliance (2014/2015) 5 December Corporate Presentation, September 2014 | Financials Annual General Meeting at the Deutsche Nationalbibliothek, Adickesallee 1, Frankfurt/Main 25 June 2015 Annual Accounts Press and Analyst Conference 19 March 2015
  • 36. Slide 36 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 37. Slide 37 Offshore Finance 12 €302.1 mn --- €302.1 mn €25.2 mn 296 bp 100.0% New business in Transport Finance 30 Jun 2014 78 €2,291.9 mn €56.7 mn €2,235.2 mn €29.4 mn 279 bp 86.1% Aviation Finance 23 €708.8 mn --- €708.8 mn €30.8 mn 277 bp 96.9% Shipping Finance 33 €964.3 mn €56.7 mn €907.6 mn €29.2 mn 284 bp 91.5% New business in Transport Finance 30 Jun 2013 71 €1,800.5 mn €43.1 mn €1.757.4 mn €25.4 mn 312 bp 85.3% Land Transport Finance 10 €316.7 mn --- €316.7 mn €31.7 mn 252 bp 32.4% New Transport Finance business No. of new deals Underwriting Syndicated Final take Avg. deal size Avg. margin Leading role Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 38. Slide 38 Customer lending volume by business division by region Shipping Finance 43.8% Aviation Finance 30.5% Land Transport Finance 8.4% Business no longer in line with DVB’s strategy 1.0% Investment Management 2.5% ITF Suisse 3.9% Europe 45.8% North America 23.7% Asia 17.7% Australia/New Zealand 1.0% Middle East/Africa 3.9% Offshore 3.5% South America 4.4% Shipping Finance 9.2 8.9 -3.3 31 Dec 2013 30 Jun 2014 Aviation Finance 6.4 6.2 -3.1 Land Transport Finance 1.6 1.7 6.3 ITF Suisse 0.8 0.8 0.0 Investment Management 0.5 0.5 0.0 Business no longer in line with DVB’s strategy 0.3 0.2 -33.3 Total 20.8 20.3 -2.4 Shipping Finance 12.7 12.1 -4.7 Aviation Finance 8.9 8.4 -5.6 Land Transport Finance 2.2 2.4 9.1 ITF Suisse 1.1 1.1 0.0 Investment Management 0.6 0.6 0.0 Business no longer in line with DVB’s strategy 0.3 0.3 0.0 Total 28.6 27.7 -3.1 [€ bn] [US$ bn] 31 Dec 2013 30 Jun 2014 % % Offshore Finance 2.0 2.0 0.0 Offshore Finance 9.9% Offshore Finance 2.8 2.8 0.0 Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 39. Slide 39 Shipping Finance portfolio by asset type Total lending volume 30 Jun 2014: €8.9 bn Tankers 43.4% thereof: 12.2% Crude oil tankers 11.9% Product tankers 10.0% Gas tankers 9.3% Chemical tankers Cruise ships 4.0% Container boxes 4.6% Bulk carriers 23.7% Container carriers 16.2% Ferries, passenger vessels 3.6% Others 4.5% Total lending volume 31 Dec 2013: €9.2 bn Tankers 43.5% thereof: 12.9% Crude oil tankers 11.9% Product tankers 10.0% Chemical tankers 8.7% Gas tankers Cruise ships 4.0% Container boxes 5.5% Bulk carriers 22.7% Container carriers 14.8% Ferries, passenger vessels 3.6% Others 5.9% Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 40. Slide 40 Aviation Finance portfolio by asset type Total lending volume 30 Jun 2014: €6.2 bn Narrowbody pax 51.6% thereof: 27.0% Boeing 24.6% Airbus Widebody pax 33.6% thereof: 17.4% Airbus 16.2% Boeing Regional jets 5.7% thereof: 5.0% Embraer 0.6% Bombardier 0.1% Airbus Freighters 8.5% thereof: 7.8% Boeing 0.7% Airbus Total lending volume 31 Dec 2013: €6.4 bn Narrowbody pax 49.4% thereof: 25.0% Boeing 24.4% Airbus Widebody pax 36.8% thereof: 18.5% Airbus 18.2% Boeing Regional jets 5.7% thereof: 5.0% Embraer 0.7% Bombardier Freighters 8.1% thereof: 7.4% Boeing 0.7% Airbus Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios Turboprops 0.6% (only ATR)
  • 41. Slide 41 Offshore Finance portfolio by asset type Total lending volume 31 Mar 2013: €2.5 bn Total lending volume 31 Dec 2012: €2.5 bn 30 Jun 2014: 2.0 Platform supply vessels 29.4% Offshore construction vessels 6.9% Rigs 12.6% Anchor handlers 27.1% Others 8.7% 2013: 2.0 Multi-function service vessels 5.6% Seismic survey vessels 4.8% Drillships 3.4% FPSO 1.5% Anchor handlers 30.9% Multi function service vessels 6.2% Rigs 9.2% Platform supply vessels 28.2% Others 10.8% Offshore construction vessels 4.8% Seismic survey Vessels 4.7% Drillships 3.6% FPSO 1.6% Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 42. Slide 42 Land Transport Finance portfolio by asset type Total lending volume 30 Jun 2014: €1.7 bn Business no longer in line with DVB’s strategy 0.4% On rail 91.0% thereof: 54.8% Freight cars 20.7% Locomotives 14.2% Regional train sets 1.0% Passenger coaches 0.3% City/commuter traffic On road 8.6% thereof: 8.3% Container chassis 0.3% Tank containers Total lending volume 31 Dec 2013: €1.6 bn Business no longer in line with DVB’s strategy 0.4% On rail 90.2% thereof: 58.2% Freight cars 15.5% Regional train sets 14.9% Locomotives 1.2% Passenger coaches 0.4% City/commuter traffic On road 9.4% thereof: 9.0% Container chassis 0.4% Tank containers Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 43. Slide 43 Portfolio collateralisation 83.2 74.6 59.8 74.5 69.3 74.3 58.0 77.7 73.7 73.0 54.4 78.1 83.4 72.5 52.8 76.3 77.0 70.8 54.0 70.1 0 10 20 30 40 50 60 70 80 90 100 Shipping Finance Aviation Finance Offshore Finance Land Transport Finance 2009 2010 2011 2012 2013 Loan-to-value ratio (%) – relation between drawn loans and the market value of the assets financed [%] Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 44. Slide 44 Instruments for sustainable dealing with credit risks Close monitoring of compliance with all lending agreements e. g. specific covenants in the Shipping Finance contracts, like value maintenance clauses Intensive DVB in-house research Forecasting future market developments and asset values forms the basis of our portfolio strategy and individual deal decisions Close contact with clients Increased visit frequency depending on risk situation Quarterly portfolio stress tests  Early Warning List Identification of potentially higher risks in case the market environment continues to deteriorate Basis: changing asset values (specific haircuts) and counterparties’ creditworthiness (increase of probability of default) Closely Monitored List Early detection of increased risks of potential problem exposures Watch List  Close monitoring of transactions that have to be restructured and/or of transactions with a potential or already existing need to recognise allowance for credit losses Corporate Presentation, September 2014 | Transport Finance & Investment Management portfolios
  • 45. Slide 45 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 46. Slide 46 Length of client relationship by business division 2013 By business division [%] Total 3.3 6.9 11.1 48.9 25.7 4.2 1.7 14.0 11.6 43.0 23.9 5.8 0.0 0.0 11.9 64.3 23.8 0.0 1.3 0.0 6.6 40.8 26.3 25.0 1.9 7.6 9.4 52.8 13.2 15.1 < 1 year 1−3 years 3−5 years 5−10 years 10−15 years 15 years and longer Shipping Finance Aviation Finance Offshore Finance Land Transport Finance2 Investment Management Less than 1 year 2.3% 1 to 3 years 7.5% 3 to 5 years 10.6% 5 to 10 years 47.7% 10 to 15 years 24.2% 15 years and longer 7.7% Corporate Presentation, September 2014 | Clients and accolades
  • 47. Slide 47 Deal of the Year 2013 Shipping Finance – British Navigator Gas For many years, one target of DVB’s Chemical LPG & Product Tanker Group (CLP) has been to increase lending to the LPG gas carrier segment. With British Navigator Gas (Navigator), CLP won a client in this sector who is a pure LPG owner and operator mainly funded by bonds. In April 2012, the company had placed an order for 2+2+2 semi-refrigerated and ethylene capable 21,000 cbm LPG carriers with its “house-yard” Jiangnan Shipyard in China. During the second half of 2012, Navigator and Maersk Tankers (AP Möller) revived former discussions about combining their handysize LPG fleets. The total acquisition price was agreed at US$470.0 million. Consequently, Navigator turned to its three banks (SEB, Nordea and DVB) requesting a US$270 million term loan facility to finance this acquisition. Prior to closing, HSH Nordbank and ABN Amro joined the facility with US$30 million each. The final take for each of the underwriters amounted to US$70 million. Beyond this senior bank loan funding, Navigator also successfully placed a US$125 million unsecured senior bond in the Norwegian market in December 2012 and issued new equity in an amount of US$50 million. DVB’s extensive industry- and sector-specific knowledge helped to drive the process smoothly. Thus, in addition to being Lead Arranger, DVB was also able to secure a role as Co-Lead Manager in the bond issue. The issue was arranged by DVB Corporate Finance in London. Corporate Presentation, September 2014 | Clients and accolades
  • 48. Slide 48 Marubeni Corporation (Marubeni) acquired a 15.25% shareholding in operating lessor Aircastle Limited (Aircastle) – DVB Bank was sole financial advisor. Marubeni is one of the largest trading firms in Japan. DVB has held a close relationship with Marubeni since 2006. Marubeni approached DVB to explore options to increase their involvement in aircraft leasing by acquiring a minority stake. In June 2012, DVB was tasked with providing an investment case for the industry as a whole, as well as considering a number of targets. On 6 June 2013, a deal between Marubeni and Aircastle was signed and announced whereby Marubeni would provide for the issuance of approximately 15.25% of the company’s common shares at a price of US$17.00 per share, for gross proceeds of approximately US$209 million. The transaction was closed on 12 July 2013. This transaction was recently honoured with an award for “Aviation 100 Equity Deal of the Year” by Airline Economics/Aviation News. Deal of the Year 2013 Aviation Finance – Marubeni Corporation Corporate Presentation, September 2014 | Clients and accolades
  • 49. Slide 49 Early in 2010, Robin Reeves – founder and CEO of Marine Assets Corporation (MAC) – approached DVB Corporate Finance (DVBCF) for assistance in a pre-delivery funding for his planned newbuilding. The most attractive solution available turned out to be a proposal from our Offshore Finance team in Singapore. DVBCF assisted MAC with the sale of ten PSVs to Stanford Marine Group (SMG) in 2009. Offshore Finance also offered acquisition finance to SMG to support the transaction. These securities were to be redeemed upon change of ownership in private equity controlled by SMG or at a long stop date on 31 December 2014. With collateral in MAC’s securities in SMG, Offshore Finance was able to provide an equity bridge loan to cover two yard instalments, leaving the final two yard payments unfunded. The intention was that MAC would either sell the unit or cash out on the loan note and warrants before such time. On this basis we structured a US$15 million equity bridge facility, of which US$4.3 million was placed on a pledged account to cover interest payments, allowing MAC to commence construction of the CSS Accommodator. Gran Energia acquired the CSS backed by a four-year time-charter contract with Petrobras and the CSS was renamed CSS Olympia. In May 2013, the initial deposit was paid to MAC which repaid DVB’s equity bridge facility in full. From the transaction DVB earned significant lending, corporate finance and broking fees. Deal of the Year 2013 Offshore Finance – Marine Assets Corporation Corporate Presentation, September 2014 | Clients and accolades
  • 50. Slide 50 Alpha Trains is the leading lessor for rail vehicles in Europe. Its current fleet comprises around 370 locomotives, primarily deployed in freight service, and 300 passenger train sets. With more than 70 employees in its branches at Antwerp, Cologne, Luxembourg and Madrid, Alpha Trains services European train operators, both in the private and public sectors. On 30 December 2013, we were able to negotiate and close the financing of a diversified portfolio of 202 locomotives and passenger train sets, in a leading position. DVB was mandated as Arranger and assumed the role of Security Agent within an international syndicate of eight banks. Alpha Trains Luxembourg No. 2 Sarl acquired the portfolio at the end of 2013 from Royal Bank of Scotland plc. Alpha Trains had already managed the rolling stock since 2008, when it sold the vehicles to a syndicate of international investors. The diversified rolling stock portfolio, which can be deployed in up to twelve European countries, has been leased to international rolling stock lessees. Alpha Trains was very satisfied with the successful structuring of this complex transaction, which represented an important milestone for the continued expansion of the private-sector rail equipment leasing business in Europe. Deal of the Year 2013 Land Transport Finance – Alpha Trains Corporate Presentation, September 2014 | Clients and accolades
  • 51. Slide 51 Some important deals 2013 – Shipping Finance AlmiTankers US$80 mn financing of newbuild VLCC and Aframax US$80 mn Arranger Baltic Trading 2 x 180,000 dwt Capesize bulk carriers built 2011 & 2012 US$44 mn Bilateral Buss – Global Container Assets 2013 Intermodal Container Asset-Backed Securities US$279.3 mn Co-Lead Manager Dong Fang International Investment Japanese Operating Lease US$50 mn Mandated Lead Arranger Elandra Tankers (Singapore) JV of AT & a leading oil/commodity trader Post Delivery Facility 3 x 51,000 dwt product tankers US$67.5 mn Bilateral Golar LNG US$1.1 bn Export Credit Financing 8 x LNG carriers US$55 mn Mandated Lead Arranger Intermodal Investment Fund IV New and used marine cargo containers US$100 mn finance lease portfolio with various liner companies, SIIM 50% equity investor, financing arranged by ING Bank N.V. Naftomar Shipping & Trading Refinancing of 3 x LPG tankers US$37.5 mn Arranger Navig8 Product Tankers 16 x LR2 newbuild product tankers 50% of the sponsor equity Private placement in total US$320 mn Anchor investor Sargeant Marine 3 financings for 3 x second-hand asphalt tankers and 1 x newbuild asphalt tanker contracted at Avic SY in China US$67.2 mn Arranger SK Shipping US$202.5 mn Export Credit Financing 3 x newbuild VLCC US$67.5 mn K-sure Agent Technomar Shipping US$167 mn Post Delivery Senior Secured ECA-Covered Term Loan 3 x 9,000 TEU container vessels Mandated Lead Arranger & K-sure Agent Navios Maritime Holdings 4 x Panamax bulk carriers built 2006 (1) and 2005 (3) US$40 mn Bilateral Intermodal Investment Fund IV Corporate Presentation, September 2014 | Clients and accolades
  • 52. Slide 52 Some important deals 2013 – Aviation Finance Allegiant Air Term Loan 4 x A320-200 Arranger DVB‘s Aviation Asset Management Repossession of 2 x A320-200‘s from India and onward sale of the aircraft to SAS – Scandinavian Airlines Manager & Remarketing Agent DVB‘s Aviation Investment Management Investment Advisor to equity funds owning 102 commercial aircraft 167 engines 2 airline equity investments Hong Kong Aviation Operating Lease Financing 2 x A320-200 on lease to Asiana Airlines Arranger Intrepid Aviation Operating Lease Financing B777-300ER on lease to THAI Arranger Jazeera Airways Finance Lease 3 x new A320-200 Arranger LOT Financial Advisory with respect to the financing of 5 x new B787-8 Malaysia Airlines Finance Lease 2 x new A330-300 Arranger Marubeni Corporation M&A Advisory in relation to the acquisition of a 15.25% shareholding in Aircastle Limited ORIX Aviation Systems Operating Lease Financing 1 x new B787-8 on lease to TUI Travel Arranger Philippine Airlines Finance Lease 1 x new A330-300 1 x A321-200 1 x V2533-A5 spare engine Arranger Transportation Partners Operating Lease Financing 2 x B737-800 on lease to Lion Air Arranger United Airlines Term Loan 3 x new B737-900ER Arranger DVB‘s Aviation Asset Management DVB‘s Aviation Investment Management Corporate Presentation, September 2014 | Clients and accolades
  • 53. Slide 53 Some important deals 2013 – Land Transport Finance Alpha Trains Term Loan Diversified fleet of 202 locomotives & passenger train sets Arranger & Security Agent Flexi-Van Leasing Asset-Backed Lease & High-Yield Bond Diversified fleet of intermodal & domestic chassis US$25.0 mn (Asset-Backed Lease) Co-Lead Arranger NACCO Term Loan Facilities 2,100 x rail cars US$47.0 mn Bilateral Lender Rio Grande Chemical Senior Secured Loan & Warehouse Facility 1,478 x rail cars US$66.0 mn Lead Arranger & Administrative Agent Corporate Presentation, September 2014 | Clients and accolades
  • 54. Slide 54 Some important deals 2013 – Offshore Finance BOURBON Sale-and-lease-back 2 x AHTS on bareboat charter US$81.3 mn Co-Arranger: DVB Equity Arranger: Pareto Project Finance AS Ezra Holdings Term Loan 3 x AHTSs US$49 mn Bilateral Ship Finance International Senior Secured Term Loan Facility 6th generation,UDW semi-submersible drilling rig “West Hercules” US$375.0 mn Mandated Lead Arranger Teekay Voyageur Senior Secured Term Loan Facility FPSO “Teekay Voyageur Spirit” US$330.0 mn Mandated Lead Arranger Vision Drilling Senior Secured Term Loan Facility 1 x 2013 built jack-up drilling rig US$135.0 mn Volstad Shipping NOK350.0 mn Term Loan Facilities To part finance 3 x offshore support vessels Arranger Corporate Presentation, September 2014 | Clients and accolades
  • 55. Slide 55 Accolades 2012/2013  The Ship Finance Award 2013  Used Aircraft Deal of the Year 2012  Editor’s Choice Award 2013 – Navigator Gas  Editor’s Choice Award 2013 – Sovcomflot  Contribution to Ship Finance 2013  Seatrade Asia – Jun 2013  Airfinance Journal – Apr 2013  Marine Money – Mar 2013  Marine Money – Mar 2013  Marine Money – Mar 2013 2013 2012  Bank Debt Deal of the Year 2012  Editor‘s Choice Award 2012 – Norskan Offshore  Shipping Financier of the Year 2012  Rail Finance Innovator of the Year 2011  Bank of the Year – International Transport Markets  Sale/Leaseback Deal of the Year 2011  Predelivery Payment Deal of the Year 2011  North America Deal of the Year 2011  Leasing (East) Deal of the Year 2011  Securitization Deal of the Year 2011  Marine Money Offshore – 2013  Marine Money Offshore – 2013  Lloyd’s List – Dec 2012  Global Transport Finance – Nov 2012  DealMakers Monthly – Sep 2012  Airfinance Journal – Apr 2012  Airfinance Journal – Apr 2012  Airfinance Journal – Apr 2012  Marine Money – Mar 2012  Marine Money – Mar 2012 Corporate Presentation, September 2014 | Clients and accolades
  • 56. Slide 56 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 57. Slide 57 Total capital (CRR) and capital ratios Corporate Presentation, September 2014 | Own funds and refinancing 30 Jun 2014 Total capital ratio: 21.1% Tier 1 ratio: 19.4% Capital ratios ‒ Basel III (following the confirmation of profits) [€ mn] 1,144.0 0.0 97.0 1,241.0 Common equity tier 1 Additional tier 1 Tier 2 capital Total capital
  • 58. Slide 58 Funding structure 30 Jun 2014 Long-term funding 97.6% Short-term funding 2.4% Short-term deposits banks/clients thereof: 53.1% Uncovered bearer bonds 39.3% Promissory notes/long-term deposits 3.5% Ship covered bonds 1.7% Own funds in accordance with the KWG 31 Dec 2013 Long-term funding 97.9% Short-term funding 2.1% Short-term deposits banks/clients thereof: 52.0% Uncovered bearer bonds 40.9% Promissory notes/long-term deposits 3.5% Ship covered bonds 1.5% Own funds in accordance with the KWG Corporate Presentation, September 2014 | Own funds and refinancing
  • 59. Slide 59 Topics 1 Key facts about DVB 2 Journey of success since 1997 3 Financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 Clients and accolades
  • 60. Slide 60 Operational environment 2014 The economic outlook for 2014 is upbeat with world GDP growth accelerating from 3.0% in 2013 to expected 3.7 % and 3.9% in 2014 and in 2015 respectively. GDP growth is uneven and is conspicuous by its absence in a large number of developed economies. The US economic growth is continuously gaining momentum while the EURO area is expected to continue struggling with uneven economic growth within the EURO/zone The euro zone is expected to return to slowly accelerating economic growth (1.0% in 2014 and 1.4% in 2015) from -0.4% in 2013, but the recovery is expected to be increasingly uneven and more modest in economies under stress. High public and private debt, and financial fragmentation will put a downward pressure on domestic demand. However, exports should further contribute to growth China’s economic growth is expected to remain strong but to moderate slightly to around 7.5% in 2014 and 7.3% in 2015 driven by various policy measures including measures aimed at slowing credit growth and raising the cost of capital – a controlled slowdown in economic growth in order to avoid overheating of the economy US GDP growth is projected to be between 2.8% in 2014 and 3% in 2015 from 1.9% in 2013. The pickup in economic growth in the US in 2014 is primarily carried by final domestic demand, partly supported by a reduction in the fiscal drag as a result of the recent budget agreement. Corporate Presentation, September 2014 | Outlook and targets 2014
  • 61. Slide 61 Outlook 2014 – Shipping markets Oversupply is still the key issue in some sectors, but because of the decline in new ship orders the situation is improving. Nonetheless, additional contracting can weigh down the nascent recovery in fleet utilisation seen in some sectors. Specialised ships are in a better position to deal with the shipping crisis than standardised ships in terms of value development but earnings visibility is still highly dependent on the efficiency and ability of commercial deployment. Pressure on ship values, freight and charter rates within the three challenging sectors (container vessels, bulk ships and crude oil tankers) persists, but it seems that we are close to a bottom, at least for more modern eco-specialised assets. The longer-term uptrend for fuel prices can further burden voyage operating costs. The declining willingness of banks to finance older shipping assets will particularly stress the secondary markets for second-hand vessels. Further defaults and consolidation of ship owners and charterers cannot be ruled out. Demand situation will generally be positive, with a cyclic recovery expected to take hold in key commodity consuming markets. Corporate Presentation, September 2014 | Outlook and targets 2014
  • 62. Slide 62 Outlook 2014 – Aviation markets Global airline results are set to improve further. The North American market is relatively stable. Competition in Asia is intense. Traditional European carriers remain under pressure from expanding Middle Eastern long-haul competitors as well as European low-cost carriers. Fuel prices have stabilised at relatively high levels, but airlines have demonstrated their ability to live with this. After record orders in 2013, the backlog for commercial jets has reached an unprecedented level. This allows the manufacturers to increase new aircraft deliveries again in the coming years. High jet-fuel prices and increasing availability of new, more efficient aircraft designs will start to put more pressure on older aircraft. Aircraft lessors control an increasing share of the global commercial jet fleet, allowing airlines to benefit from competitive lease rates and divestment of residual value risks. In aircraft financing, commercial banks will benefit from increasing costs for export credits but also face increasing competition from capital market products. Demand perspectives for passenger transport remain positive. Early signs of partial recovery for the airfreight markets. Corporate Presentation, September 2014 | Outlook and targets 2014
  • 63. Slide 63 Outlook 2014 – Offshore markets Based on fundamentals, we expect oil prices to drop and end the year lower. Although there is increasing offshore activity in deeper waters, shallow water demand is considerable with 72% of all offshore development situated in less than 200 metres water depth. Offshore regional markets have their own drivers and trends. E&P activity in the Gulf of Mexico, off the Brazilian coast, East and West Africa and the Eastern Mediterranean is expected to show the highest growth rates in 2014. With the ascendency of Chinese yards as builders of offshore assets, newbuilding prices are expected to steadily decline. In 2014, we anticipate Turkish and other Asian yards furthering their credentials in these assets as well. While oversupply will likely impact jack-up rig utilisation, the deep water floater market is close to being in balance. Offshore capital markets are robust – which limits opportunities for commercial banks. The cycle of rapidly increasing E&P capital expenditure of the past several years has ended. E&P spending growth in the region of 3–5% is anticipated in 2014. Despite the growing US shale oil and gas production, shale development will not alter the dynamics of offshore E&P activity for another eight to ten years. Corporate Presentation, September 2014 | Outlook and targets 2014
  • 64. Slide 64 Outlook 2014 – Land Transport markets Almost only the largest rail freight companies show positive results. Passenger transport results still heavily rely on political decisions. Consolidation of railroads could continue. Attempts to sell Central and Eastern European incumbents will drag on. US freight car backlog predominantly consists of tank cars for the booming oil industry, but demand should pick up for most of the other car types as well. European freight car backlog picks up, but is still way below pre crisis level. Freight car prices are under pressure in Europe. Locomotive demand is weak in Australia and Europe. Current fleets must be better utilised first. Leasing companies gain market share in Europe, but will be cautious to invest. Competition in the banking market is increasing from the European Union funding, European Investment Bank loans and capital markets. Demand perspectives for passenger and freight transport are positive. However, freight performance in Europe is still not moving up, although it grew with 1.6% in Germany – Europe’s largest rail freight market – in 2013. Coal markets are still depressed in US (tighter emission regulations) and Australia (lower growth in demand from Asia), but doing fine in Europe (more import due to mine closures). Very strong level of new passenger train set deliveries for the European market. Corporate Presentation, September 2014 | Outlook and targets 2014
  • 65. Slide 65 Targets 2014 We strive to achieve solid results for the 2014 business year, which do not materially diverge from the previous year’s figures. We continuously expand our funding sources, as well as funding tools and structures. We focus on additional service offers for our clients, with a particular focus on the capital markets business. We endeavour to expand the financing offers and advisory services established in our new Offshore Finance division. We boost the efficiency of processes in our Shipping Finance division. We keep on working intensely on reducing our risk positions in parts of our shipping lending business. Corporate Presentation, September 2014 | Outlook and targets 2014
  • 66. Slide 66 Topics 1 Key facts about DVB 2 DVB’s journey of success since 1997 3 DVB Group’s financials 4 Transport Finance & Investment Management portfolios 6 Own funds and refinancing 7 Outlook and targets 2014 8 Appendices 5 DVB’s clients and accolades
  • 67. Slide 67 The Board of Managing Directors Corporate Presentation, September 2014 | Appendices Wolfgang F. Driese CEO and Chairman of the Board of Managing Directors, Bank director Since 1997 1986 - 1997 1982 - 1986 1974 - 1982 1971 - 1974 1970 - 1971 CEO and Chairman of the Board Of Managing Directors of DVB Bank SE Branch Manager Deutsche Bank AG, Singapore. Senior Vice President, Regional Head Office Singapore. Manager main branch in Munich. Member of the Board of Directors main branch in Leipzig Branch Manager of Trinkaus& Burkhardt KG, Munich, Head of International Corporate Division and Member of the Board of Directors Vice President Corporate Clients and Head of Marketing/Credit Department at Citibank AG, Munich Degree in economic engineering from Munich Polytechnic College (FachhochschuleMünchen) Vocational training at Dresdner Bank AG, Munich CURRICULUM VITAE Client areas in business divisions Shipping & Offshore Credit, Aviation Credit, Land Transport Credit Strategic Management and Restructuring Team Shipping & Offshore Research, Aviation Research, Land Transport Research Financial Institutions Corporate Development Group Client areas in affiliates ITF International Transport Finance Suisse AG LogPay Financial Services GmbH Product/service areas Group Compliance Office Group Controlling Group Corporate Communications Group Human Resources Group Legal Group Risk Management RESPONSIBILITIES Chairman of the Supervisory Board DVB Bank America N.V., Willemstad, Curaçao Chairman of the Supervisory Board/ Board of Directors DVB Group Merchant Bank (Asia) Ltd, Singapore DVB Holding (US) Inc., New York, USA DVB Invest (Suisse) AG, Zurich, Switzerland DVB Transport (US) LLC, New York, USA ITF International Transport Finance Suisse AG, Zurich, Switzerland Member of the Supervisory Board/ Board of Directors AAE Ahaus Alstätter Eisenbahn Holding AG, Baar, Switzerland DVB Transport Finance Ltd, London, United Kingdom DVB Capital Markets LLC, New York, USA OFFICES HELD
  • 68. Slide 68 The Board of Managing Directors Corporate Presentation, September 2014 | Appendices Ralf Bedranowsky Member of the Board of Managing Directors, Bank director Since July 2013 2007 - 2013 2004 - 2007 1980 - 2004 Member of the Board of Managing Directors of DVB Bank SE Deutsche Bank AG, Global Head Deutsche Shipping, global responsibility for the business development and coverage of the shipping clients in ship financing and investment banking Landesbank Hessen Thüringen, Member of the Board of Managing Directors Deutsche Bank AG, from 2001 to 2004 Member of the Regional Management Board for Northern and Eastern Germany and Deputy Chairman of the Supervisory Board of Schiffshypothekenbank zu Lübeck AG CURRICULUM VITAE Client areas in business divisions DVB Corporate Finance Shipping Finance Offshore Finance Shipping & Intermodal Investment Management Shipping Execution Management Client areas in affiliates DVB Capital Markets LLC Product/service areas Group Finance Group Operations RESPONSIBILITIES Chairman of the Board of Directors DVB Capital Markets LLC, New York, USA Member of the Board of Directors DVB Holding (US) Inc., New York, USA DVB Transport (US) LLC, New York, USA OFFICES HELD
  • 69. Slide 69 The Board of Managing Directors Corporate Presentation, September 2014 | Appendices Bertrand Grabowski Member of the Board of Managing Directors, Bank director Since 2005 2001 - 2004 1998 - 2000 1990 - 1997 1984 - 1990 1981 - 1984 1979 - 1981 1975 - 1978 Member of the Board of Managing Directors of DVB Bank SE Citigroup London, Direktor Asset Finance Group Crédit Agricole Indosuez, New York, Head of Aerospace Group for the Americas and Branch Manager Crédit Agricole Indosuez, Tokyo, Head of Asian Aerospace Group and Branch Manager (as from 1995) Banque Indosuez, Paris, Director Aerospace Group Société Navale Delmas-Vieljeux, Paris, Vice President Finance & Treasury Agefaforia, Paris, Associate Ecole Supérieure des Sciences Economiques et Commerciales (ESSEC), Paris, MBA CURRICULUM VITAE Client areas in business divisions Aviation Finance Aviation Asset Management Aviation Financial Consultancy Aviation Investment Management Land Transport Finance Client areas in affiliates DVB Transport Finance Ltd TES Holdings Ltd (40% shareholding) Product/service areas Group Audit Group Treasury Chairman of the Board of Directors DVB Transport Finance Ltd, London, United Kingdom Member of the Board of Directors DVB Transport (US) LLC, New York, USA DVB Capital Markets LLC, New York, USA DVB Holding (US) Inc., New York, USA Non-executive director Bravo Passenger Solutions Pte. Ltd, Singapore OFFICES HELD RESPONSIBILITIES
  • 70. Slide 70 Employees at DVB 30 Jun 2014: 575 active employees Service areas Transport Finance/ Investment Management 308 216 51 LogPay Financial Services 30 Jun 2013: 556 active employees Service areas Transport Finance/ Investment Management 307 200 49 LogPay Financial Services Corporate Presentation, September 2014 | Appendices
  • 71. Slide 71 Nationalities in DVB 20.5% 16.2% 15.9% 9.1% 7.1% 6.8% 6.2% 18.2% British Dutch German Singaporean Norwegian US-American 21 other nationalities Greek 308 active employees Transport Finance/ Investment Management 575 active employees DVB Group 41.2% 13.2% 11.8% 6.4% 4.9% 4.2% 3.8% 14.5% British Dutch German US-American Singaporean Norwegian 34 other nationalities Greek Corporate Presentation, September 2014 | Appendices
  • 72. Slide 72 Accolades 2009−2011  Shipping Deal of the Year – North America  Award for Contribution to Ship Finance 2008  Aircraft Debt Deal of the Year – North America  Aircraft Debt Deal of the Year – South America  Americas Rail Deal of the Year  Jane’s Transport Finance – Nov 2009  Marine Money – Feb 2009  Jane’s Transport Finance – Nov 2009  Jane’s Transport Finance – Nov 2009  Jane’s Transport Finance – Nov 2009 2009  Asia Ship Finance Award 2010  Regional Jet Deal of the Year  Shipping Debt Deal of the Year – South America  Shipping Leasing Deal of the Year  European Rail Deal of the Year  Aviation Research House of the Year  Seatrade Asia – Apr 2010  Airfinance Journal – Apr 2010  Jane’s Transport Finance – Nov 2010  Jane’s Transport Finance – Nov 2010  Jane’s Transport Finance – Nov 2010  Jane’s Transport Finance – Nov 2010 2010  Rail Finance Innovator of the Year  Editor’s Choice of the Year – West  Editor’s Choice of the Year – Shipping Research  Leasing Deal of the Year – East  Project Finance Deal of the Year  Export Credit Deal of the Year – West  Jane’s Transport Finance – Nov 2011  Marine Money – Feb 2011  Marine Money – Feb 2011  Marine Money – Feb 2011  Marine Money – Feb 2011  Marine Money – Feb 2011 2011 Corporate Presentation, September 2014 | Appendices
  • 73. Slide 73 Accolades 2008–2006  Restructuring Deal of the Year 2006  Best Shipping Finance Research  Ship Finance Personality 2006 (Dagfinn Lunde)  European Rail Deal of the Year  M&A Deal of the Year 2005  Marine Money  Lloyd's Shipping Economist  Lloyd's Shipping Economist  Jane's Transport Finance  Marine Money 2006  Aircraft Debt Deal of the Year – Africa  Rail Finance House of the Year  US Rail Deal of the Year  Shipping Debt Deal of the Year – Europe  Jane's Transport Finance  Jane's Transport Finance  Jane's Transport Finance  Jane's Transport Finance 2007  Rail Finance House of the Year  US Rail Deal of the Year  Aircraft Debt Deal of the Year – Asia  Aircraft Debt Deal of the Year – Middle East  Aircraft Capital Markets Award  Best Shipping Finance Research  PDP Deal of the Year  Cargo Finance Deal of the Year  Africa Deal of the Year  Jane’s Transport Finance – Nov 2008  Jane’s Transport Finance – Nov 2008  Jane’s Transport Finance – Nov 2008  Jane’s Transport Finance – Nov 2008  Jane’s Transport Finance – Nov 2008  Lloyd’s Shipping Economist – Nov 2008  Airfinance Journal – Jan 2008  Airfinance Journal – Jan 2008  Airfinance Journal – Jan 2008 2008 Corporate Presentation, September 2014 | Appendices
  • 74. Slide 74 Accolades 1999–2005  Best Shipping Finance Research  Long Term Aircraft Finance Deal of the Year – Middle East  Road Finance Innovator  Lloyd's Shipping Economist  Jane's Transport Finance  Jane's Transport Finance 2005  Best Shipping Finance Research  Shipping Equity Deal of the Year  Most Innovative Shipping Finance Deal  Best Ship Financier  Lloyd's Shipping Economist  Jane's Transport Finance  Lloyd's Shipping Economist  Lloyd's List Maritime Asia 2004  Most Professional Overall Finance Service to Shipping  Aircraft Debt Deal of the Year – Europe  Lloyd's Shipping Economist  Jane's Transport Finance 2002  Best Overall Knowledge of the Tanker Sector  Lloyd's Shipping Economist 2001  Most Innovative Ship Finance Institution Worldwide  Lloyd's Shipping Economist 2000  Best Ship Financier  Lloyd's List Maritime Asia 1999 Corporate Presentation, September 2014 | Appendices
  • 75. Slide 75 Chronicle and logos Foundation of Deutsche Verkehrs-Kredit-Bank AG (DVKB) in Berlin DVKB shares introduced to official trading on the FSE and BSE; Deutsche Bundesbahn retains 75.1% and a free float of 24.9% DG BANK takes a majority share of 50.1% in Deutsche Verkehrs-Bank AG (DVB) DVB’s strategy focuses on the transportation industry Acquisition of the Global Aviation and Shipping Finance division of the Long-Term Credit Bank of Japan: DVB goes international Acquisition and integration of Nedship Bank N.V., closing of all German branches and establishment of Transport Finance divisions (Shipping, Aviation and Land Transport) Change of corporate name: DVB Bank AG Merger of DVB Bank N.V. into DVB Bank AG and new legal form: DVB Bank SE 1923 1988 1995 1997 1998 1999/2000 2002 2008 Corporate Presentation, September 2014 | Appendices
  • 76. Slide 76 Contact For further information please visit www.dvbbank.com > Investors Contact person: Corporate Presentation, September 2014 | Appendices Scanning this QR code with your smartphone will forward you directly to our website Elisabeth Winter Head of Group Corporate Communications Senior Vice President Telephone: +49 69 9750 4329 email: elisabeth.winter@dvbbank.com DVB Bank SE Platz der Republik 6 60325 Frankfurt /Main, Germany info@dvbbank.com, www.dvbbank.com
  • 77. Slide 77 Disclaimer This presentation has been prepared by DVB Bank SE. This presentation does not contain or constitute an offer, or the solicitation of an offer, to buy or subscribe for securities to any person. This document is not a prospectus. The presentation is a short summary description of certain aspects in respect of DVB Bank SE. It may not contain all relevant information in respect of the topics covered. This presentation is therefore not a sufficient basis for any investment decision in respect of any securities of DVB Bank SE. This presentation contains forward-looking statements which include statements about our beliefs and expectations as well as the assumptions underlying them. Such statements speak only as of the day they are made since they are based on plans, estimates and projections currently available to the management of DVB Bank SE. Forward-looking statements contain risks and uncertainties, and it cannot be guaranteed that they will turn out to be correct in light of future events or developments. Information and opinions contained in this presentation have been compiled or arrived from sources believed by DVB Bank SE to be reliable. Any statements about DVB Bank SE’s market position are based on DVB Bank SE’s own estimates, unless explicitly stated otherwise herein. Although the information shown herein has been taken from sources which are believed to be reliable or is based on DVB Bank SE’s own estimates, no warranty or representation is made as to the correctness, completeness and accuracy of the information or the assessments made on its basis. DVB Bank SE accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation. Corporate Presentation, September 2014 | Appendices