Investor Presentation, April 2017

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- Financials and outlook
- Business model
- Lending volume and portfolio data

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Investor Presentation, April 2017

  1. 1. TRUSTWORTHY. FOCUSED. DIVERSIFIED. COMPETENT. DVB Bank Group – Investor Presentation Frankfurt/Main, May 2017
  2. 2. Disclaimer This presentation has been prepared by DVB Bank Group. 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 Group. 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 Group. 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 Group. 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 Group to be reliable. Any statements about DVB Bank Group’s market position are based on DVB Bank Group’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 Group’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 Group 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. Investor Presentation __ May 2017 __ Disclaimer Page 2
  3. 3. Contents 03/ DVB – Lending volume and portfolio data 26 Lending volume and new business 28 Shipping Finance 29 Aviation Finance 30 Offshore Finance 31 Land Transport Finance 32 Financial Institutions and Syndications 33 DVB Corporate Finance 34 Investment Management 02/ DVB – Business model 20 Competitive strengths 03/ DVB – Financials and outlook 5 Financial figures 12 Own funds and refinancing 14 Rating 15 Macroeconomic environment and targets 18 Financial calendar 04/ DVB – Further information 36 Shareholder base 37 Board of Managing Directors 38 Staff 39 Imprint 40 Photo credits Page 3
  4. 4. 01/ DVB – Financials and outlook 5 Financial figures 12 Own funds and refinancing 14 Rating 15 Macroeconomic environment and targets 18 Financial calendar
  5. 5. Preliminary remarks All statements made regarding net worth, financial position & results relate to DVB Bank 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 31 March 2017, and have not been certified by the auditors. Page 5Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  6. 6. Press release as of 11 May 2017 (1) DVB Bank Group posts results for the first quarter of 2017 / Positive development of operating income / Allowance for credit losses remains on an elevated level / Volatile effects from the IAS 39 result Frankfurt/Main, 11 May 2017 – DVB Bank Group (DVB), the specialist in international transport finance, reported a consolidated net loss before taxes of €83.8 million in the first quarter of 2017 (previous year: net income of €25.9 million). This was heavily influenced by a negative net result from financial instruments in accordance with IAS 39 (€–61.3 million). Furthermore, reflecting market developments, additional allowance for credit losses was recognised in the amount of €65.9 million. Ralf Bedranowsky, CEO and Chairman of DVB Bank SE's Board of Managing Directors, commented on the Bank's consolidated results: “On a positive note, income generated by our operating activities continued to show a stable development. Specifically, net interest income (before allowance for credit losses) was up 4.7%, to €60.5 million, net fee and commission income rose 20.0%, to €32.4 million, and net other operating income/expenses improved from €4.4 million, to €10.0 million. In particular, we originated 36 new international transport finance transactions, with an aggregate volume of €1.0 billion (previous year: 27 new financings with a total volume of €1.2 billion). Due to the persistent structural excess tonnage capacity, the continued deterioration in vessel values and charter rates (especially in container shipping), and the challenging environment for the offshore industry – caused by low oil prices – allowance for credit losses required predominantly for legacy exposures in the Shipping Finance portfolio, and for financings in the Offshore Finance portfolio, rose by €29.6 million to €65.9 million (previous year: €36.3 million). To be continued on next slide Page 6Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  7. 7. Press release as of 11 May 2017 (2) As mentioned, the net result from financial instruments in accordance with IAS 39 amounted to €–61.3 million (previous year: €27.9 million); this was largely driven by the measurement of cross-currency swaps, which the Bank is not allowed to include in its hedge accounting. Based on prudent economic risk management, these derivatives form hedging relationships with the related hedged items, whereby measurement gains and losses reported on a particular record date are neutralised over the entire term of the financings extended.” The detailed items of the interim financial statements are as follows: Net interest income increased by 4.7%, from €57.8 million to €60.5 million. Allowance for credit losses amounted to €65.9 million (previous year: €36.3 million). New allowance recognised for credit losses totalled €103.0 million, €98.9 million of which in Shipping Finance and Offshore Finance. Conversely, allowance for credit losses of €36.9 million was reversed, of which €32.8 million in Shipping Finance and Offshore Finance. Net interest income after allowance for credit losses amounted to €–5.4 million (previous year: €21.5 million). Total allowance for credit losses (comprising specific allowance for credit losses, portfolio-based allowances for credit losses, and provisions) rose to €679.1 million, up 7.3% from year-end 2016 (€633.1 million). Net fee and commission income, which primarily includes fees and commissions from new Transport Finance business, asset management fees, and fees generated from Corporate Finance advisory mandates, was up 20.0%, from €27.0 million to €32.4 million. Results from investments accounted for using the equity method stood at €–0.6 million (previous year: €–0.2 million). Net other operating income/expenses amounted to €10.0 million (previous year: €4.4 million), largely due to two non-recurring effects. Moreover, DVB managed to keep general administrative expenses of €47.0 million stable and in line with the previous year (€46.2 million) – in spite of continued high expenses incurred from regulatory-driven projects. Staff expenses increased by 5.1%, to €28.8 million (previous year: €27.4 million), whilst non-staff expenses (including depreciation, amortisation and write-downs) were down 3.2%, from €18.8 million to €18.2 million. Page 7 To be continued on next slide Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  8. 8. Press release as of 11 May 2017 (3) Net result from financial instruments in accordance with IAS 39 (comprising the trading result, the hedge result, the result from derivatives entered into without intention to trade, and the result from investment securities) amounted to €–61.3 million (previous year: €27.9 million). Consolidated net income/loss before bank levy, BVR Deposit Guarantee Scheme, and taxes totalled €–71.9 million (previous year: €34.4 million). Estimated bank levy charges of €7.5 million for 2017 (2016: actual bank levy of €6.4 million) as well as €4.4 million in expenses for the Deposit Guarantee Scheme of the National Association of German Cooperative Banks (2016: actual expenses of €4.7 million) needed to be deducted from consolidated net income/loss before taxes already at the beginning of the year. Consolidated net income/loss before taxes declined from €25.9 million to €–83.8 million, whilst consolidated net income/loss (after taxes) amounted to €–72.9 million (previous year: €19.2 million). DVB's total assets increased to €27.8 billion as at 31 March 2017, up 0.4% from the 2016 year-end (31 December 2016: €27.7 billion). DVB's nominal volume of customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, contingent liabilities from irrevocable loan commitments, and derivatives) declined by 3.9% to €24.9 billion. In US dollar terms, it was down by 2.6%, to US$26.6 billion. Key financial indicators developed as follows: Return on equity (before taxes) decreased to –5.4% (previous year: 1.3%). The Bank managed to lower its cost/income ratio by 4.2 percentage points, to 50.1% (previous year: 54.3%). Risk-adjusted Economic Value Added amounted to €–48.1 million (previous year: €–21.2 million). DVB discloses capital ratios determined in accordance with Basel III (Advanced Approach). On this basis, DVB's common equity tier 1 ratio as at 31 March 2017 was 11.3% (31 December 2016: 13.2%), whilst the total capital ratio amounted to 18.8% (31 December 2016: 20.7%). Page 8Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  9. 9. At a glance – Income statement 1 National Association of German Cooperative Banks 1 Jan 2017− 31 Mar 2017 1 Jan 2016− 31 Mar 2016 Net interest income 60.5 57.8 4.7 Allowance for credit losses -65.9 -36.3 81.5 Net interest income after allowance for credit losses -5.4 21.5 – Net fee and commission income 32.4 27.0 20.0 Results from investments in companies accounted for using the equity method -0.6 -0.2 – Net other operating income/expenses 10.0 4.4 – Total income (before IAS 39) 36.4 52.7 -30.9 General administrative expenses -47.0 -46.2 1.7 Consolidated net income/loss before IAS 39, bank levy, BVR1 Deposit Guarantee Scheme and taxes -10.6 6.5 – Net result from financial instruments in according with IAS 39 -61.3 27.9 – Consolidated net income/loss before bank levy, BVR1 Deposit Guarantee Scheme and taxes -71.9 34.4 – Consolidated net income/loss before taxes -83.8 25.9 – Consolidated net income/loss (after taxes) -72.9 19.2 – IFRS Page 9 € mn % Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  10. 10. Consolidated net income/loss, as at 31 March Consolidated net income/ loss Income taxes Total income1 General administrative expenses Expenses for the bank levy and the BVR2 Deposit Guarantee Scheme (financial year) Net result from financial instruments in accordance with IAS 39 Consolidated net income/ loss Income taxes Total income1 General administrative expenses Expenses for the bank levy and the BVR2 Deposit Guarantee Scheme (financial year) Net result from financial instruments in accordance with IAS 39 2017 € mn 2016 € mn 1 Composing net interest income after allowance for credit losses, net fee and commission income, result from investments in companies accounted for using the equity method and net other operating income/expenses; 2 National Association of German Cooperative Banks Page 10 36.4 -46.2 +27.9 -8.5 -6.7 19.2 -11.9 -61.3 -72.9 +10.9 52.7 -47.0 Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  11. 11. Development of key ratios Return on equity before taxes % Cost/income ratio % Economic Value Added € mn 31 Mar 2017 31 Mar 2016 31 Mar 2017 31 Mar 2016 31 Mar 2017 31 Mar 2016 Page 11 -48.1 1.3 54.3 -21.2 -5.4 50.1 Investor Presentation __ May 2017 __ Financial figures 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  12. 12. Own funds (in accordance with the CRR) and capital ratios (31 Mar 2017) € mn 856.1 0.0 564.7 Common equity tier 1 capital Additional tier 1 capital Tier 2 capital Modified available equity 1,420.8 Total capital ratio: 18.8%Common equity tier 1 ratio: 11.3% Capital ratios – Basel III Page 12Investor Presentation __ May 2017 __ Own funds and refinancing 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  13. 13. Diversified funding composition (31 Mar 2017: €26.0 bn) 1 Nominal volume Diversified, granular funding base / More than 1,200 investors Products1 Investors2 7.3% Short-term funding thereof: 5.3% Short-term deposits banks/customers 2.0% Cash collateral 8.8% Volksbanken Raiffeisen- banken cooperative financial network 1.8% Retail 13.8% Banks 47.9% Institutional investors 27.7% DZ BANK 92.7% Long-term funding thereof: 50.9% Senior-unsecured bonds 36.2% Promissory notes 3.3% Subordinated liabilities 3.1% Ship covered bonds 0.2% Long-term deposits 2 Estimates Page 13Investor Presentation __ May 2017 __ Own funds and refinancing 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  14. 14. Rating development Feb 2017 Oct 2016 Dec 2011 Mar 2011 Jan 2009 Dec 2006 Aug 2006 Jul 2005 Aug 2004 Aug 2001 Long-term counterparty credit rating A+ A+ A+ A A A A- A- BBB+ BBB+ Short-term credit rating A-1 A-1 A-1 A-1 A-1 A-1 A-2 A-2 A-2 A-2 Outlook negative negative stable stable negative stable positive stable stable negative Debt Issuance Programme: – Subordinated A Since 1999 DVB has been rated by Standard & Poor's (S&P) at regular intervals. Within the scope of the German Cooperative Financial Services Network's rating, DVB has also been evaluated by Fitch Ratings since 2005. Mar 2015 Aug 2012 Jun 2009 Jan 2009 Long-term issuer default rating AA- A+ A+ A+ Short-term issuer default rating F1+ F1+ F1+ F1 Debt Issuance Programme: – Long-term senior unsecured – Short-term senior unsecured AA- F1+ A+ F1+ Page 14Investor Presentation __ May 2017 __ Rating 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  15. 15. Macroeconomic environment (1) Global growth as forecasted by the International Monetary Fund (IMF) is projected to rise to a rate of 3.5% in 2017 – slightly above the previous year's level (projection for 2016: 3.1%). Consistently good economic news since summer 2016 are starting to add up to a brightening global outlook and the economic upswing that the IMF has expected for some time seems to be materialising. Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade. Stronger activity and expectations of more robust global demand, coupled with agreed restrictions on oil supply, have helped commodity prices recover from their troughs in early 2016. Financial markets are buoyant and expect continued policy support in China and fiscal expansion and deregulation in the United States. DVB agrees with this expert opinion and expects further economic growth to remain uncertain on the back of the following risk factors: / further political development with regard to the benefits of cross-border economic integration – increased restrictions on global trade and migration would hurt productivity and incomes; / a faster-than-expected pace of interest rate hikes in the United States, which could trigger a more rapid tightening in global financial conditions and a sharp dollar appreciation, with adverse repercussions for vulnerable economies / financial tightening in emerging markets, made more likely by mounting vulnerabilities in China’s financial system associated with fast credit growth and continued balance sheet weaknesses in other emerging markets; / increased geopolitical tensions and terrorism and their impact on the global economy; / further development of commodity prices, in particular oil prices. Page 15 Source: IMF, April 2017 Investor Presentation __ May 2017 __ Macroeconomic environment and targets 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  16. 16. Macroeconomic environment (2) The following developments are evident in the world: / The US economy is projected to expand at a faster pace in 2017. The stronger near-term outlook reflects the momentum from the second half of 2016, driven by a cyclical recovery in inventory accumulation, solid consumption growth, and the assumption of a looser fiscal policy stance. The anticipated shift in the policy mix so far has buoyed financial markets and strengthened business confidence, which could further fuel the current momentum. Over a longer horizon, however, the outlook for the US economy is more subdued. / Growth in China is projected to slow down, projections are bit higher than before, reflecting the stronger-than-expected momentum in 2016 and the anticipation of continued policy support in the form of strong credit growth and reliance on public investment to achieve growth targets. The medium-term outlook, however, continues to be clouded by increasing resource misallocation and growing vulnerabilities associated with the reliance on near-term policy easing and credit-financed investment. / The euro zone recovery is expected to proceed at a broadly similar pace in 2017 as in 2016. The modest recovery is projected to be supported by a mildly expansionary fiscal stance, accommodative financial conditions, a weaker euro, and beneficial spillovers from a likely US fiscal stimulus; political uncertainty as elections approach in several countries, coupled with uncertainty about the European Union’s future relationship with the UK, is expected to weigh on activity. / Oil prices have continued to increase following the agreement by OPEC members to cut oil production. The effectiveness of the production agreements could thus be partially offset by an increase in US shale oil production, which, unlike conventional oil, can commence within a year of initial investment. Amid a significant cutback in production, fairly robust demand could move the oil market from surplus to deficit in the first half of 2017, in turn reducing oil inventory levels. However, rapid investment recovery in the US shale sector could tip the market back into surplus as early as the second half of 2017. Page 16 Source: IMF, April 2017 Investor Presentation __ May 2017 __ Macroeconomic environment and targets 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  17. 17. Targets 2017 / We plan to sustain the positive business development in Aviation Finance as well as in Land Transport Finance and strengthen the profit contribution of these businesses. / We will undertake every effort to avoid having to record a loss as in 2016. We intend to reduce the higher risk costs in Shipping Finance and Offshore Finance during 2017 and 2018. This is based on assumptions that the persistent tonnage overcapacity in some shipping segments will not rise beyond existing levels, and that charter rates and asset values will not decline further. Hence, we will continue to focus strongly on managing risks in these businesses. / We strive to preserve our sound core operational earnings before risk costs and before IAS 39. This means that, in addition to our lending business, we will focus on value-added services for clients in our Transport Finance business – such as capital markets products and advisory services. / We will keep supporting our shipping clients in a market environment characterised by less liquidity supply as many international shipping financiers are continuing to withdraw from the shipping markets. / We will continue to successfully address regulatory-driven projects. This will also contribute to our ability to distinguish ourselves from our competitors, as well as raising the entry barriers for new participants in our fields of business. Page 17Investor Presentation __ May 2017 __ Macroeconomic environment and targets 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  18. 18. Financial calender __ 2017 / Publication of the single-entity and Group Annual Reports 2016 / Publication of the Quarterly Statement – Three-month results 2017 (for the first three months ending 31 March 2017) / Annual General Meeting at the Deutsche Nationalbibliothek, Adickesallee 1, Frankfurt/Main / Publication of the Half-Yearly Financial Report 2017 / Publication of the Quarterly Statement – Nine-month results 2017 (for the first nine months ending 30 September 2017) / Publication of the 16th Declaration of Compliance (2017/2018) 31 March 2017 11 May 2017 22 June 2017 10 August 2017 14 November 2017 4 December 2017 Page 18Investor Presentation __ May 2017 __ Financial calender 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  19. 19. 02/ DVB – Business model 20 Competitive strengths
  20. 20. DVB’s mission statement 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 specialist in international transport finance Page 20Investor Presentation __ May 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  21. 21. DVB’s business model (1) Asset & Market Research Structured Asset Lending Private Equity Sourcing & Investments Asset Management Client Account Risk Distribution & Loan Participations Corporate Finance Solutions Shipping Finance Aviation Finance Offshore Finance Land Transport Finance Page 21Investor Presentation __ May 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  22. 22. DVB’s ten competitive strengths Business model  clearly focused, distinctively specialised, diversified in many aspects, cycle-neutral and international in scope Business policy  conservative and sustainable Organisation  transparent structures, swift information flow and prompt decision-making Human resources  highly qualified 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  granular and maturity-matched Own funds  sound capital base 10Page 22Investor Presentation __ May 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  23. 23. Strengths / Clearly focused business model with a unique specialisation, cycle-neutral business approach, and a global presence in all key transport markets / Conservative and sustainable business policy / Transparent structures, with a high degree of flexibility and fast decisions / Highly qualified, experienced staff / Customised products and services, high level of client service, as well as 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 / Granular and matched-maturity funding / Sound capital base through own funds S / Higher liquidity costs, compared to most competitors / Direct relationship between the Bank's business development and GDP growth / 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 / Exposure to the euro/US dollar exchange rate, with an impact on growth and results W / Realisation of margins in line with risks taken / Expansion of anti-cyclical Investment Management activities / Building new client relationships / Numerous initiatives taken to broaden the product portfolio and enhance cross- selling / Funding available through access to the extensive liquidity offered by the German Cooperative Financial Services Network / Expanding the advisory and other services offered to clients, banks, and investors / Boosting DVB's reputation as a reliable partner to the international transport industry O / High level of early repayments, negatively impacting the net interest margin / Rising number of insolvencies, especially in the shipping and offshore markets / Significant decline in transport asset values, in various market segments / Rising threat of recession, on a global scale / Distortions on the global financial markets / Indebtedness of certain industrial nations and emerging economies / Rise of the US dollar against the euro / Further increasing regulatory requirements / Development of commodity prices, in particular oil prices T DVB’s SWOT analysis Weaknesses Opportunities Threats Page 23Investor Presentation __ May 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  24. 24. Instruments for sustainably dealing with credit risks / Forecasting future market developments and asset values forms the basis of our portfolio strategy and individual deal decisions / Increased visit frequency depending on risk situation Intensive research and close client contact / e.g. specific covenants in the Shipping Finance contracts, like value maintenance clauses Close monitoring of compliance with all lending agreements / Identification of potentially higher risks in case the market environment continues to deteriorate by quarterly portfolio stress tests / Basis: changing asset values (specific haircuts) and counterparties’ creditworthiness (increase of probability of default) Early Warning List / Early detection of increased risks of potential problem exposures Closely Monitored 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 Watch List / In general, transactions are placed on the LLP List if risks have materialised, and the deal has been classified as defaulted. Loan Loss Provision List Page 24Investor Presentation __ May 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  25. 25. 59 Land Transport Finance 66 Financial Institutions and Syndications 69 DVB Corporate Finance 74 Investment Management 03/ DVB – Lending volume and portfolio data 26 Lending volume and new business 28 Shipping Finance 29 Aviation Finance 30 Offshore Finance 31 Land Transport Finance 32 Financial Institutions and Syndications 33 DVB Corporate Finance 34 Investment Management
  26. 26. Customer lending volume US$ bn 31 Mar 2017 31 Mar 2016 % Shipping Finance 12.5 12.6 -0.8 Aviation Finance 8.7 9.1 -4.4 Offshore Finance 2.5 2.5 – Land Transport Finance 1.8 1.7 5.9 Investment Management 0.6 0.6 – ITF Suisse 0.4 0.6 -33.3 Business no longer in line with DVB’s strategy 0.1 0.2 -55.0 Total 26.6 27.3 -2.6 € bn 31 Mar 2017 31 Mar 2016 % Shipping Finance 11.7 11.9 -1.7 Aviation Finance 8.1 8.7 -6.9 Offshore Finance 2.3 2.4 -4.2 Land Transport Finance 1.7 1.6 6.3 Investment Management 0.6 0.6 – ITF Suisse 0.4 0.6 -33.3 Business no longer in line with DVB’s strategy 0.1 0.1 – Total 24.9 25.9 -3.9 by business division by region 47.0% Shipping Finance 0.4% Business no longer in line with DVB’s strategy 1.6% ITF Suisse 2.4% Investment Management 6.8% Land Transport Finance 9.3% Offshore Finance 32.5% Aviation Finance 47.1% Europe 0.3% Australia & New Zeeland 2.4% South America 4.0% Offshore 6.0% Middle East & Africa 16.5% Asia 23.7% North Amerika Page 26Investor Presentation __ May 2017 __ Lending volume and new business 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  27. 27. New Transport Finance business Shipping Finance Aviation Finance Offshore Finance Land Transport Finance New business in Transport Finance 31 Mar 2017 New business in Transport Finance 31 Mar 2016 Number of new deals 19 15 – 2 36 27 Underwritten €445.6 mn €509.1 mn – €90.9 mn €1,045.6 mn €1,222.5 mn Avg. deal size €23.5 mn €33.9 mn – €45.5 mn €29.0 mn €45.9 mn Leading role 63.4% 83.8% – 100.0% 76.5% 84.3% Page 27Investor Presentation __ May 2017 __ Lending volume and new business 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  28. 28. Shipping Finance portfolio (31 Mar 2017: €11.7 bn) Total lending volume by vessel type 1.2% Ferries, passenger vessels 47.9% Tankers thereof: 14.6% Crude oil tankers 11.3% Gas tankers 11.1% Chemical tankers 10.9% Product tankers Total lending volume by country risk 54.0% Europe 3.3% Offshore 4.6% Middle East & Africa 15.7% Asia 21.6% North & South America 25.0% Bulk carriers 0.8% Central America & Caribbean 1.3 % Others 1.6% Cruise ships 2.7% Container boxes 3.6% Car carrier 16.7% Container carriers Page 28Investor Presentation __ May 2017 __ Shipping Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  29. 29. Aviation Finance portfolio (31 Mar 2017: €8.1 bn) Total lending volume by aircraft type Total lending volume by country risk 6.1% Regional jets thereof: 5.8% Embraer 0.3% Bombardier 5.2% Freighters thereof: 4.6% Boeing 0.6% Airbus 1.9% Turboprops thereof: 1.7% ATR 0.2% Bombardier 50.1% Narrowbody pax thereof: 25.8% Boeing 24.3% Airbus 32.5% Europe 2.2% South & Central America 4.3% Offshore 10.9% Middle East & Africa 23.9% Asia & Australia 36.7% Widebody pax thereof: 22.9% Boeing 13.8% Airbus 26.2% North America Page 29Investor Presentation __ May 2017 __ Aviation Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  30. 30. Offshore Finance portfolio (31 Mar 2017: €2.3 bn) Total lending volume by asset type Total lending volume by country risk 22.5% Drilling thereof: 17.5% Rigs 5.0% Drillships 8.1% Floating Production – F(P)SO 50.9% Europe 0.7% Middle East & Africa8.1% North & South America 11.7% Offshore 13.4% Central America & Caribbean 15.2% Asia/Pacific 24.1% Subsea thereof: 9.9% Offshore construction vessels 5.2% Seismic survey vessels 5.1% Multi-function service vessels 1.4% Standby rescue vessels 2.5% Others 45.3% Offshore support thereof: 23.1% Platform supply vessels 19.7% Anchor handlers 2.5% Oil well service vessels Page 30Investor Presentation __ May 2017 __ Offshore Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  31. 31. Land Transport Finance portfolio (31 Mar 2017: €1.7 bn) Total lending volume by asset type Total lending volume by country risk 52.8% Europe 2.8% Australia 44.4% North America 91.7% Rail-based thereof: 62.8% Freight cars 19.4% Locomotives 8.1% Regional passenger train sets 1.4% Passenger coaches 8.3% Rail-related thereof: 8.2% Container chassis 0.1% Tank containers Page 31Investor Presentation __ May 2017 __ Land Transport Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  32. 32. Financial Institutions and Syndications portfolio (31 Mar 2017: €322.1 mn) Total sell-down volume by business division 62.3% Aviation Finance37.7% Shipping Finance Page 32Investor Presentation __ May 2017 __ Financial Institutions and Syndications 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  33. 33. DVB Corporate Finance portfolio (31 Mar 2017) Revenue by business division Revenue by products 95.0% Capital Markets 5.0% Advisory and Mergers & Acquisitions Page 33 5.4% Land Transport Finance 48.3% Aviation Finance 46.3% Shipping Finance Investor Presentation __ May 2017 __ DVB Corporate Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  34. 34. Investment Management – Investment volume (31 Mar 2017) Breakdown of the investment volume 71.2% AIM 28.8% SIIM SIIM: thereof: 25.6% NFC Shipping Funds 1.8% Stephenson Capital 1.4% Container Funds AIM by asset type €863.6 mn thereof: 15.9% Widebody 2.3% Engines 0.1% Narrowbody 1.0% Freighter widebody 26.5% Passenger widebody 53.0% Passenger narrowbody 1.2% Other 18.3% Disassembly Page 34 SIIM-shipping portfolio by asset type €310.9 mn 16.3% Other investments 54.0% Tankers thereof: 18.2% LPG tanker 17.2% Chemical tankers 7.5% Product tankers 6.1% Crude oil tankers 5.0% LNG tankers 4.8% Car carriers 6.9% Bulk carriers 7.9% Containerships 10.1% Offshore vessels Investor Presentation __ May 2017 __ Investment Management 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  35. 35. 04/ DVB – Further information 36 Shareholder base 37 Board of Managing Directors 38 Staff 39 Imprint 40 Photo credits
  36. 36. Current shareholder base 4.53% Other shareholders 95.47% Page 36Investor Presentation __ May 2017 __ Shareholder base 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  37. 37. Responsibilities of DVB’s Board of Managing Directors as of 1 January 2017 Client areas in business divisions Client areas at affiliatesProduct/service areas Ralf Bedranowsky CEO and Chairman of the Board of Managing Directors David Goring-Thomas Member of the Board of Managing Directors Christian Hagemeyer Member of the Board of Managing Directors L.H. (Bart) Veldhuizen Member of the Board of Managing Directors Page 37Investor Presentation __ May 2017 __ Board of Managing Directors Corporate Finance Shipping Finance Offshore Finance Shipping and Intermodal Investment Management Information Technology DVB Capital Markets LLC Aviation Credit Credit and Asset Solution Group Land Transport Research Aviation Research Land Transport Credit Shipping and Offshore Credit Group Risk Management Aviation Finance Aviation Investment Management Land Transport Finance Aviation Financial Consultancy Financial Institutions and Syndications Group Treasury Transaction and Loan Services DVB Transport Finance Ltd Business Process Support Group Compliance Office Group Corporate Communications Group Audit Group Controlling Group Finance ITF International Transport Finance Suisse AG LogPay Financial Services GmbH Group Human Resources Group Legal Shipping and Offshore Research 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  38. 38. Empoyees at DVB Page 38Investor Presentation __ May 2017 __ Staff 3.3% Greek Business areas Nationalities 59 LogPay Financial Services 327 Transport Finance/ Investment Management 245 Service areas 42.3% German 12.8% British 12.2% Dutch 15.2% 32 other nationalities 3.2% Norwegian 4.8% US-American 6.2% Singaporean 31 Mar 2017: 631 active employees 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information
  39. 39. Imprint Responsible for the content of this presentation and contact: Elisabeth Winter Head of Group Corporate Communications Managing Director Phone: +49 69 9750 4329 E-mail: elisabeth.winter@dvbbank.com DVB Bank SE Platz der Republik 6 60325 Frankfurt/Main, Germany info@dvbbank.com, www.dvbbank.com For further information please visit www.dvbbank.com After scanning this QR with your smartphone, you will have direct access to our website. Page 39Investor Presentation __ May 2017 __ Imprint 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information Lisa Boose-Kirwel Group Corporate Communications Manager Investor Relations Phone: +49 69 9750 4435 E-mail: lisa.boose-kirwel@dvbbank.com
  40. 40. Photo credits Page 40Investor Presentation __ May 2017 __ Photo credits Front Cover: Shipping Finance: Pages 1, 6: M.T. Maritime Management (USA) LLC, Southport, USA Aviation Finance: Pages 1, 6: Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands Offshore Finance Pages 1, 6: Volstad Management AS, Ålesund, Norway Land Transport Finance: Pages 1, 6: Wouter Radstake, DVB Bank SE, Frankfurt/Main, Germany 01/ DVB – Financials and outlook Page 4: iStock/SusanneB 02/ DVB – Business model Page 19: DZ BANK AG/DVB Bank SE 03/ DVB – Lending volume and portfolio data Page 25: Getty Images 04/ DVB – Further information Page 35: DVB Picture Archives Page 37 Ralf Bedranowsky, David Goring-Thomas, Christian Hagemeyer and L.H. (Bart) Veldhuizen: Andreas Fechner, Dusseldorf, Germany and DVB Bank SE, Frankfurt/Main, Germany Page 39: DVB Picture Archive 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

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