1. business and industrial

Rating & Investor Relations
BayernLB - Factbook
November 2014
Agenda
Page
Factbook · November 2014 · Page 2
1
History, Management, Owners
3
2
Business model
10
3
Business areas
14
4
Institution BayernLabo and subsidiaries
22
5
Ratings
26
6
Guarantee mechanisms
29
History, Management, Owners
The Bank’s history dates back to 1884
Landeskultur-Rentenanstalt
Landesbodenkreditanstalt
1884
Giro Association Girozentrale
Bayerische Gemeindebank
Landeskultur-Rentenanstalt founded
1914
Giro Association founded
1917
Girozentrale establishes its own branch offices
1925
Bayerische Gemeindebank
1929
Bausparkasse (building society)
1949
1972
2005
Today
Factbook · November 2014 · Page 3
Bayerische Landesbodenkreditanstalt
Merger
Bayerische Landesbank
History, Management, Owners
Management
Dr. Johannes-Jörg Riegler
Michael Bücker
Born in 1964
Chief Executive Officer
since 2014
Born in 1962
Member of the Board of Management
since 2013
Dr. Edgar Zoller
Factbook · November 2014 · Page 4
Dr. Markus Wiegelmann
Born in 1957
Deputy Chief Executive Officer
Member of the Board of Management
since 2009
Born in 1969
Member of the Board of Management
since 2014
Marcus Kramer
Ralf Woitschig
Born in 1963
Member of the Board of Management
since 2010
Born in 1967
Member of the Board of Management
since 2014
History, Management, Owners
Strong owners
Association of
Bavarian Savings
Banks
Free State of
Bavaria
AAA/Aaa¹
~ 25% ²
~ 75%
BayernLB Holding AG
100%
100%
Stateguarantee
Institution established under public law
100%
¹ Standard & Poor‘s, Moody‘s
² 24.99999994% .
Factbook · November 2014 · Page 5
100%
100%
History, Management, Owners
Strong owners - Free State of Bavaria
Major corporations in Bavaria
The Free State of Bavaria has the highest ratings from
Standard & Poor's and Moody's – Aaa/AAA – and is
one of only three German states rated AAA by S&P.
Bavaria accounts for 17.8% of Germany's nominal
gross domestic product (GDP) in 2013.
Bavaria is the largest state in Germany, making up
about 20% of its total area.
Automotive:
Insurance:
Bavaria's debt-to-GDP ratio in 2013: 8.2%
Bavaria has lowest debt per capita of all western
German federal states (Bavaria (2013): EUR 3,200; all
West German states: EUR 8,751).
Industry:
Apparel:
25% of all DAX 30 corporations are in Bavaria
Bavaria's economy has a high number of Mittelstand
firms
Mechanical engineering:
Source: Bavarian state statistics office, Government of Bavaria,
Fed. Ministry of Finance, Bav. Economics Ministry, destatis
Factbook · November 2014 · Page 6
Other:
History, Management, Owners
Economic outlook for Germany and Bavaria still positive
■ Germany is particularly recession resistant compared to the rest of Europe
■ Bavaria is one of the economically strongest German states
■ The economic outlook for Germany is positive:
■ Indicators suggest an acceleration in economic growth in the first half of 2014
■ Stable job market with unemployment remaining low at around 7.0%
■ 2014 GDP forecast: +1.9%
■ 2014 exports forecast: +5.4%
Gross domestic product in 2013 in EUR bn
(Source: BayernLB Research – Eurostat, German federal and state statistics offices)
Germany
3.000
2.738
2.500
2.060
2.000
1.909
1.560
1.500
1.000
500
0
Factbook · November 2014 · Page 7
Bavaria
1.023
603
490
488
420
390
385
383
313
249
193
182
166
164
History, Management, Owners
Strong owners Association of Bavarian Savings Banks
Facts and figures
Association of Bavarian Savings Banks
about the Bavarian savings banks
Acts as the central service provider for the 71 Bavarian savings banks
and their owners
Savings banks
Strengthens the competitive position of the Bavarian savings banks in
the financial sector
Branches
Represents the common interests of the savings banks and their
owners to the public
Manages the development of new products, sales systems and IT
applications for the Bavarian savings banks
Employees
of which apprentices +
trainees
Accounts
71
2,354
44,769
3,636
16,911,000
Actively supports economic and social development in Bavaria
Acts as advocate for the Association within the SparkassenFinanzgruppe
Loans outstanding
EUR 113 bn
Customer deposits
EUR 142 bn
Total assets
EUR 182 bn
Coordinates the activities in the Association
As at: 31 Dec 2013
Factbook · November 2014 · Page 8
Agenda
Page
Factbook · November 2014 · Page 9
1
History, Management, Owners
3
2
Business model
10
3
Business areas
14
4
Institution BayernLabo and subsidiaries
22
5
Ratings
26
6
Guarantee mechanisms
29
Business model
The aims of the customer-focused business model
■ BayernLB is one of the leading commercial banks for large and
Mittelstand customers in Germany
■ Strong, regionally focused corporate and real estate lender with a
balanced risk profile
■ As a member of the Sparkassen-Finanzgruppe, BayernLB offers
its close partners, the savings banks, a wide range of products,
while also acting as central bank within the Association
■ Retail customers are mainly served by BayernLB’s Deutsche
Kreditbank AG (DKB) subsidiary
Factbook · November 2014 · Page 10
Business model
Our future-oriented business model from the customer's point of
view
Corporates
Real Estate
Savings Banks/
Public Sector
Capital Markets,
FI and
Institutionals
Corporates
Real Estate
Savings banks
Markets
Retail Customers
Mittelstand
Incl.: Corp. customers
Structured Finance
Incl.: Infrastructure
Strong position among
big cap companies in
Ger. (especially DAX)
One of the top 5 in new
business in the
German market
No. 1 partner to the
Bavarian savings
banks
One of the top 5 banks
in Germany for
Mittelstand comp.
Lean processes boost
growth
Well established
outside Bavaria, too
Customer-driven
capital market business
One of the top 5 online
banks in Ger.
Strong in asset
management
Selective market
leadership in corporate
customers and
infrastructure
Lean, efficient processes and IT / professional risk management / tight management
Please note: Does not include CA/Other or non-core business
Factbook · November 2014 · Page 11
Business model
Our market position in our core business is good
Segment
Market position (highlights)
28 DAX companies BayernLB customers
Corporates,
Mittelstand & FI
Top bank for Mittelstand customers in Bavaria
Recognised expertise in structured finance products
Together with DKB, biggest commercial real estate book in Germany1
Real Estate & Savings
Banks/Association
Leading bank for residential property developers in the greater Munich area
Strong partnership with the savings banks
Top 3 rank in corporate bonds and Schuldschein note loans
Markets
One of the top 5 Pfandbrief issuers in Germany
Second-largest Landesbank in asset management
Currently around 3 m retail customers –second largest internet bank in Germany
DKB
Successful specialisation on corporates and infrastructure customers in selected
sectors
Lower cost base than competitors
1)
By number of customers
Factbook · November 2014 · Page 12
Agenda
Page
Factbook · November 2014 · Page 13
1
History, Management, Owners
3
2
Business model
10
3
Business areas
14
4
Institution BayernLabo and subsidiaries
22
5
Ratings
26
6
Guarantee mechanisms
29
Business areas
Long tradition: Principal and core bank for corporate customers
Our successes
One of the top corporate syndication banks in Germany
We have deep roots in an ideal
environment. Something that many
major companies have benefited from.
BayernLB was the first bank to establish a modern, refinance
platform in the EU (Luxembourg) to securitise receivables
Leader in financing renewable energy
Corporates
"Corporate financing with vision" - that is
BayernLB's approach to serving large
companies in Germany and selected
international companies with a connection
to Germany. This means long-term
partnerships
based
on
extensive
understanding of markets and sectors,
structuring know-how and capital markets
expertise.
Factbook · November 2014 · Page 14
BayernLB's share among large Coproate customers (annual
sales > EUR 1 bn) has been very stable over the long-term
growing steadily since 2008 to approx. 27%
Number 1 among all landesbanks in arranging corporate
bonds - top 5 among all German banks; one of the top 3
banks on the German Schuldschein market
Business areas
Growing base: Partner of the German Mittelstand
Our successes
Leading bank for Mittelstand companies in Bavaria and North
Rhine-Westphalia with annual sales of EUR 50 m or more
German Mittelstand companies in Bavaria –
in other words milk farms and hotels, right?"
Export and trade financing has grown by 7% since 2012,
while German exports have only grown moderately (2012:
3.3%, 2013: -0.2%)
Corporate Finance: One of the top 5 LBO banks in Germany
in the EUR 50 to 150 m sales segment
Mittelstand
BayernLB's strengths are its exceptional
structuring
expertise
and
all-round
financial engineering solutions for balance
sheet, risk and liquidity management.
Extensive know-how in selected key
sectors and competence international trade
with a long-term view.
Factbook · November 2014 · Page 15
Market leader in Bavaria in subsidised loans in association
with the Bavarian savings banks
The share of customers among large Mittelstand companies
(annual sales of EUR 150 m - 1 bn) has risen to approx. 19%
since 2008
Business areas
Focus: Product range for pros
Our successes
With a market share of approx. 12%, BayernLB is one of the top 5
banks for domestic payments
Direct member of London Clearing House (LCH) and able to
do customer clearing
"And the consultants most likely show
up in lederhosen. How does that work?
Strong network of correspondent bank with more than 3,000
banks in over 120 countries and thus one of the top trade &
export finance banks
Financial institutions
BayernLB offers a range of products and
services especially tailored to the needs of
an international network of partner banks
who meet the criteria of BayernLB’s
focused business model. We pay particular
attention to customer service and product
quality, especially as part of the expansion
of our customer-centred consulting model.
Factbook · November 2014 · Page 16
Fourth-largest issuer on the German Pfandbrief market
Business areas
Tailor-made financing solutions and services for your real estate
project
Our successes
New business volume in 2013 approx. EUR 3.0 bn, H1 2014:
approx. EUR 1.4 bn
Pleasing number of new customers gained since 2013 (38)
Market share: 2.5-3% (cement and expand position as major
player; among the top 10 in new business in 2013)
Real Estate
We provide financing to German and
international investors for purchasing or
refinancing real estate in Germany, selected
European countries and the US.
Through our Group network, we also provide a
comprehensive range of real estate services
including M&A consulting and equity coinvestments via BayernImmo and asset
management by Real I.S.
Factbook · November 2014 · Page 17
Leader in residential property developing in the greater
Munich area and in care facilities in Germany
Long-standing customer relationships, in some cases over
40 years, high degree of overall customer satisfaction
We maintain long-standing partnerships with our customers
For 40 years
Since 1978
Schörghuber
Unternehmensgruppe
Joseph Pschorr Haus, Munich
Augustinum-Gruppe
Neufriedenheim
residential home, Munich
Business areas
Long-standing solid relationships with customers
Our successes
Tried and true customer relationships, particularly with the
savings banks customer group
Leader in lead managing the issue of state and local bonds
Collaboration with the savings banks and municipalities
significantly expanded in money and capital market products
Savings Banks/
Association
We support the savings banks with knowhow and innovation skill and offer them a
wide range of products and services for
proprietary and customer business.
As a highly capable partner to government
and municipal customers and publicallyowned institutions, BayernLB offers a wide
range of products with tailor-made
solutions
for
their
financing
and
investment wishes.
Factbook · November 2014 · Page 18
Retail-like credit process established for the small corporates
syndication business
Product innovations - successful roll-out: Gold Combi
bullions, precious metals Combi Product,
S-Unternehmensplattform
Business areas
Partner of our customers and investors in the treasury and
capital market business
Our successes
Top 3 bank for German and international Schuldschein notes
Top 3 among the German banks for corporate and financial
institutions bonds as well as Pfandbrief issues
Top 5 of the largest Pfandbrief issuers in Germany
Markets
Leading provider of solutions for regulatory issues in
customer business, such as EMIR / clearing service
Innovative supplier of tailor-made treasury and
capital market products for all of the Bank's
business areas. Markets is a key partner to
Ensuring BayernLB's funding through short-term and longerterm issues in different markets/currencies
companies, financial institutions, investors,
savings banks and the public sector. Our
focus is the interests and needs of our
customers.
Customised customer service in all aspects of interest rate,
FX, commodity and liquidity management
Factbook · November 2014 · Page 19
Business areas
Profile of DKB
Successful business model
Facts and figures
Total assets
As a successful internet bank, DKB concentrates on selected customer
groups: Retail customers ("Your bank on the web"), business
customers (agriculture, renewable energy, tourism), infrastructure
(residential construction, energy & utilities, healthcare)
Center of competence for Mittelstand energy and utility companies,
municipal utility companies and a strong partner of the renewable energy
sector
With almost 3 m retail customers DKB is the second largest internet
bank in Germany
Equity
Liabilities to customers
EUR 71,081 m
EUR 2,668 m
EUR 46,874 m
Net interest income
EUR 306 m
Risk provisions
EUR -67 m
Profit before taxes
EUR 55 m
Customer deposits rose again in the first half of 2014 to EUR 46.8 bn
Customer business performed well in all segments
Cost/income ratio
57.7%
Return on equity
3.6%
As at: 30 Jun 2014
Factbook · November 2014 · Page 20
Agenda
Page
Factbook · November 2014 · Page 21
1
History, Management, Owners
3
2
Business model
10
3
Business areas
14
4
Institution BayernLabo and subsidiaries
22
5
Ratings
26
6
Guarantee mechanisms
29
Institution BayernLabo and subsidiaries
BayernLB's institution - portrait of BayernLabo
BayernLabo
BayernLabo is charged by the Bavarian government with the mission
of promoting residential and urban development in Bavaria (owneroccupied and rental residences plus housing for the elderly).
Facts and figures
EUR 24,633 bn
Total assets
EUR 2,052 m
Own funds
In addition, BayernLabo handles borrowing on behalf of the state
government and Bavarian municipal governments.
BayernLabo is a body established under public law which is a legally
dependent but organisationally and financially independent part of
BayernLB.
61%
Cost-income ratio
Employees (full-time
equivalent)
As at: 31 Dec 2013
The Free State of Bavaria is the unconditional, permanent and
irrevocable guarantor for all liabilities entered into by BayernLabo.
The refinancing guarantee by the Free State of Bavaria is payable on
demand, thereby ruling out any delay in payment.
Credit rating
Free State of Bavaria
AAA/Aaa¹
Solva 0 weighting status: No capital backing, no deductions from
large credit limits; these privileges also apply under Art. 116 (4) CRR.
Standard & Poor's Rating of BayernLabo: AAA
¹ Standard & Poor's, Moody‘s
Factbook · November 2014 · Page 22
100% state guarantee
209
Institution BayernLabo and subsidiaries
BayernLB's subsidiaries –
profile of BayernInvest
BayernInvest Kapitalverwaltungsgesellschaft mbH
BayernInvest, with offices in Munich and Luxembourg, is the
BayernLB Group center of competence for institutional asset
management.
BayernInvest is one of the largest asset management companies in
Germany. Since 2001 it has experienced continuous growth in
customer numbers in all business segments.
As asset manager and master service provider for capital investment
companies, it develops comprehensive solutions in special funds and
public funds for its institutional customers.
Its modular product range permits flexible investment strategies.
Thanks to this flexibility, the wishes of its customers always have
highest priority.
Transparency, a long-term view, and continuous quality assurance are
the hallmarks of BayernInvest's investment processes.
As strategic advisor to its customers, BayernInvest offers them first
class product, advisory and problem solving expertise.
Factbook · November 2014 · Page 23
Facts and figures
Assets under
management
EUR 53,782 m
Number of mandates
448
Employees
161
As at: 31 Jul 2014
Services
Anstalt BayernLabo und Töchter
BayernLB's subsidiaries - portrait of Real I.S.
Real I.S.
As a member of the Sparkassen-Finanzgruppe, the Real I.S. Group is
BayernLB's real estate asset manager and fund service provider.
Services:
Special funds under German investment law and others, public real
estate funds, customised fund solutions, portfolio management, and
the management of institutional international real estate portfolios.
References:
Over 100 fund products since 1991 with a total investment volume of
approximately EUR 8.9 bn for retail and institutional investors.
Quality:
For 20 years Real I.S.'s investment motto has been "quality before
quantity". Numerous awards for Real I.S's management and
participation models offer tangible proof of the success of this
philosophy.
Factbook · November 2014 · Page 24
Agenda
Page
Factbook · November 2014 · Page 25
1
History, Management, Owners
3
2
Business model
10
3
Business areas
14
4
Institution BayernLabo and subsidiaries
22
5
Ratings
26
6
Guarantee mechanisms
29
Ratings
Ratings
Grandfathered debt 1
AAA
Aaa
Public Pfandbriefe
AAA
Aaa
Mortgage Pfandbriefe
AAA
Aaa
Short-term, unsecured
F1+
Prime -2
A+
A3
(Outlook negative)
(Outlook negative)
-
Caa1
BB
Ba1
Hybrid Tier I
CCC
Ca
Viability Rating / Financial Strength Rating
bb+
D
Long-term, unsecured
Profit participation rights
Subordinated Bonds
¹ For liabilities entered into before July 19, 2001; and for liabilities entered into between July 18, 2001 and July 18, 2005 which do not go beyond 31 December 2015.
Factbook · November 2014 · Page 26
Ratings
Above-average sustainability ratings
Sustainability framework
BayernLB’s sustainability ratings
Code of Conduct: A voluntary commitment to
behave responsibly and act in accordance with legal
and moral standards. Issues addressed include:
competition, intellectual property, customers' rights,
privacy protection, insider information and conflicts of
interests, environmental and climate protection,
human rights and employee rights
Corporate management: Corporate governance
principles, sustainability policy, environmental policy
Equal opportunity: Top employer award, Münchner
Memorandum für Frauen in Führung
Environmental and climate protection: Carbon
Disclosure Project, VfU, UNEP FI, EMAS, ISO
14001
ESG risk management: World Bank standards,
sustainability agreements with suppliers
BayernLB takes into account ecological and
social issues along the entire value chain
Factbook · November 2014 · Page 27
Public
pfandbriefs
Mortgage
pfandbriefs
65 out of 100
points
C
Ranking /
Investment
Status
18 out of 73
PRIME
Benchmark
Sector average
57
Sector average
C-
Sector average 9
July 2013
2014
2014
Rating
As at
Unsecured
bonds
13
Positive
Positive
Neutral
These results show that BayernLB is a suitable partner for investors for whom
sustainability is a part of their investment strategy.
Agenda
Page
Factbook · November 2014 · Page 28
1
History, Management, Owners
3
2
Business model
10
3
Business areas
14
4
Institution BayernLabo and subsidiaries
22
5
Ratings
26
6
Guarantee mechanisms
29
Guarantee mechanisms
Guarantee mechanisms
BayernLB is a member of the deposit guarantee reserves of the Landesbanks/central giro institutions.
These reserves are recognised by German supervisory authorities as an insurance for financial institutions as set out under
Sec 12 of the EAEG (German deposit guarantee law).
The purpose of the reserves is to protect the member banks by guaranteeing their liquidity and solvency. Thus in the event
of a crisis, the funds of the member institutions will remain protected, thereby securing as well the deposits of their
creditors – in particular savings, term and demand deposits and securitised claims (such as bearer bonds and certificates) –
regardless of amount.
The Landesbanks guarantee fund is part of the guarantee scheme run by the Sparkassen-Finanzgruppe:
German Savings Bank Association
11 guarantee funds of the regional
savings banks and giro associations
Deposit guarantee reserves of the
Landesbanks / central giro
institutions
Guarantee funds of the
home loan and savings associations
Joint Liability Scheme
All these funds form a cross-guarantee system so that they are readily available to one another as extra coverage should
this be necessary.
The Joint Liability Scheme provides a maximum degree of security for customers of the Sparkassen-Finanzgruppe.
Under the system, which was founded in the 1970’s, there has never been a customer of a member bank who has lost, or
had to be reimbursed for any loss pertaining to, their deposits. Nor has a member bank ever fallen into arrears on its
payment obligations or become insolvent.
Factbook · November 2014 · Page 29
Contact
BayernLB's Rating & Investor Relations Team
Petra Trinkies
Head of Finance
Financial Office
Financial Office
Brienner Strasse 18
Brienner Strasse 18
80333 Munich
80333 Munich
Tel +49 89 2171-27278
Tel +49 89 2171-23441
Volker Karioth
[email protected]
[email protected]
www.bayernlb.de
www.bayernlb.de
Rating & Investor Relations
Brienner Strasse 18
Rating & Investor Relations
Factbook · November 2014 · Page 30
Tel +49 89 2171-23434
www.bayernlb.de
www.bayernlb.de
Financial Office
Brienner Strasse 18
80333 Munich
Marijana Cuic
Tel +49 89 2171-23489
[email protected]
[email protected]
Rating & Investor Relations
Tel +49 89 2171-23431
[email protected]
Rating & Investor Relations
80333 München
Katharina von Merkatz
[email protected]
www.bayernlb.de
80333 München
Alexandra Heik
Brienner Strasse 18
80333 Munich
Tel +49 89 2171-21452
Brienner Strasse 18
Financial Office
Financial Office
Sebastian Appeldorn
Financial Office
Rating & Investor Relations
www.bayernlb.de
Disclaimer
The information in this presentation constitutes neither an offer nor an invitation
to subscribe to or purchase securities or a recommendation to buy. It is solely
intended for informational purposes and does not serve as a basis for any kind of
obligation, contractual or otherwise.
Factbook · November 2014 · Page 31
BayernLB
BayernLB
Investor
Relations
Rating & Investor Relations
Telephone: +49 (0)89/2171/23448
Telephone:
+49 (0)89/2171/23448
Email:
[email protected]
Email: [email protected]
Rating & Investor Relations · September
October 2012
2012
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