1. finance

DVB Group –
Corporate Presentation
Frankfurt/Main, December 2014
Slide 1
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 September 2014 and are not certified by auditors.
Slide 2
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 3
DVB’s mission statement
The leading specialist
in international
transport finance
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.
Corporate Presentation, December 2014 | Key facts about DVB
Slide 4
DVB’s unique business model
Structured Asset Financing
Risk Distribution
Shipping
Finance
Aviation
Finance
Land Transport
Finance
Offshore
Finance
Advisory Services
Equity & Debt Capital Markets
Asset Management
Client Account
Private Equity Sourcing &
Investments
Loan Participations
Asset & Market Research
Corporate Presentation, December 2014 | Key facts about DVB
Slide 5
DVB’s business areas and products
Land Transport
Finance
Business
divisions
 Rail rolling stock
Shipping Finance
Aviation Finance
Land Transport
Finance
Offshore Finance
Investment
Management
Business Sector groups:
areas
 Container, Car
Carrier, Intermodal
& Ferry
 Tanker
 Dry Bulk
 Passenger aircraft
 Freighter aircraft
 Aircraft engines
 Rail rolling stock
 Offshore support
Fund management:
Interbank market
vessels (PSVs and  Shipping &
AHTSs)
Intermodal
 Subsea &
Investment
construction vessels Management
 Seismic vessels
 Aviation Investment
 Accommodation units Management
 Offshore drilling
equipment
 Floating production
units (FPSOs)
Products  Structured Asset
and
Financing
services  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
ITF Suisse
 Loan Participations
(senior asset-based
lending)
Asset & Market Research
Corporate Presentation, December 2014 | Key facts about DVB
Slide 6
DVB’s ten competitive strengths
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
Corporate Presentation, December 2014 | Key facts about DVB
Slide 7
DVB’s SWOT analysis
Strengths
 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




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
Weaknesses
 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






 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
Opportunities
Corporate Presentation, December 2014 | Key facts about DVB
Threats
Slide 8
Shipping Finance – Specific sector expertise
1
Container, Car Carrier, Intermodal & Ferry Group
(container vessels, container boxes, car carriers, reefers, ferries and RoRo’s)
Tanker Group
2
(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)
Cruise Group  portfolio to be phased out
(ocean/river cruise)
1 Liquefied
Corporate Presentation, December 2014 | Key facts about DVB
Natural Gas
2 Liquefied
Petroleum Gas
Slide 9
Shipping Finance strategy – Specific sector expertise
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.
This approach and our commitment bring us closer to our clients.
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.
We like to take the performance to the next level and assure continued sustainable success.
Corporate Presentation, December 2014 | Key facts about DVB
Slide 10
Aviation Finance strategy – Integrated platform solutions
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 continually develop our asset-oriented lending practice to profitably expand our business.
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.
Corporate Presentation, December 2014 | Key facts about DVB
Slide 11
Aviation Finance – Integrated platform solutions
Structured
Asset
Financing
Advisory
Services
Aviation
Asset
Equity & Debt
Capital Markets Management
Aero Engine
Financing & Private Equity
Engine Asset Sourcing and
Risk
Management Investments Distribution
Asset &
Market
Research
Aviation Relationship & Lending
Corporate Presentation, December 2014 | Key facts about DVB
Slide 12
Offshore Finance – Highly specialised industry
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.
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 companyspecific 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.
Corporate Presentation, December 2014 | Key facts about DVB
Slide 13
Land Transport Finance – Consistent client franchise
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
unique understanding of the market,
focus,
capacity to execute, and
flexibility
we offer added value by
advising on intelligent asset finance solutions, and taking appropriate risk positions that capitalise on
the cyclical nature of the underlying sectors.
Corporate Presentation, December 2014 | Key facts about DVB
Slide 14
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
Aviation Investment Management:
Opportunity-driven funds with short- to medium-term strategy
Investors profit from DVB’s asset know-how and strong market penetration.
Corporate Presentation, December 2014 | Key facts about DVB
Slide 15
ITF Suisse – Business model
Shipping
Senior
asset-based
lending
in form of
participations
Aviation
Land Transport
Offshore
via
interbank
market
Asset & Market Research
Corporate Presentation, December 2014 | Key facts about DVB
Slide 16
DVB’s global coverage
Bergen
Oslo
London
Hamburg
Amsterdam
New York
Frankfurt/Main
Zurich
Tokyo
Athens
Curaçao
Singapore
Shipping Finance
Aviation Finance
Offshore Finance
Land Transport Finance
AMERICA
EUROPE
Corporate Presentation, December 2014 | Key facts about DVB
ASIA/PACIFIC
Slide 17
Operational legal structure
(including subsidiaries, principal branches and representative offices)
Subsidiaries of DVB (each 100%)
DVB Capital Markets LLC, New York, USA
DVB Transport (US) LLC, New York, USA
Branches and representative offices of DVB
DVB Bank SE, Amsterdam Branch, The Netherlands
DVB Bank SE, London Branch, United Kingdom
DVB Bank America N.V., Willemstad, Curaçao
DVB Group Merchant Bank (Asia) Ltd, Singapore
DVB Transport Finance Ltd, London, United Kingdom
DVB Bank SE, Nordic Branch, Bergen/Oslo, Norway
DVB Bank SE, Representative Office Greece,
Athens, Greece
 DVB Transport Finance Ltd, Tokyo Branch, Japan
DVB Bank SE, Hamburg Office, Germany
ITF International Transport Finance Suisse AG,
Zurich, Switzerland
LogPay Financial Services GmbH, Eschborn, Germany
 LogPay Transport Services GmbH, Eschborn, Germany
Corporate Presentation, December 2014 | Key facts about DVB
Slide 18
Two-tier management system
Board of
Managing Directors
Supervisory Board
close co-operation to the
benefit of the enterprise
 Management body
 Supervising body
 Corporate strategy
reports to
 Controlling
 Risk Management
advises, approves, controls,
appoints, dismisses
 Compliance
 Preparation of the financial statements and
management reports
 Examination, confirmation/approval of
financial statements and resolutions
 Members:
six shareholder representatives
three employee representatives
 Credit & Risk Committee, Nomination Committee,
Audit Committee, Remuneration Control Committee
 Four scheduled meetings per year
reports to
formally
approves of
reports to
formally
approves of
Annual General Meeting
 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
Corporate Presentation, December 2014 | Key facts about DVB
Slide 19
Responsibilities of Board of Managing Directors
Client areas at affiliates
Client areas in divisions
Strategic
Management
and
Restructuring
LogPay
Financial
Services
GmbH
Shipping and
Offshore
Credit
Aviation
Credit
Land
Transport
Credit
Shipping and
Offshore
Research
Aviation
Research
Land
Transport
Research
Financial
Institutions
Corporate
Development
Group
Ralf
Bedranowsky
Shipping
Finance
Offshore
Finance
DVB
Corporate
Finance
Shipping &
Intermodal
Investment
Management
Shipping
Execution
Management
DVB Capital
Markets LLC
Bertrand
Grabowski
Aviation
Finance
Aviation
Asset
Management
Aviation
Financial
Consultancy
Aviation
Investment
Management
Land
Transport
Finance
DVB
Transport
Finance Ltd
Wolfgang F.
Driese
ITF
International
Transport
Finance
Suisse AG
TES
Holdings
Ltd*
Product/service areas
Group
Legal
Group
Human
Resources
Group
Risk
Management
Group
Controlling
Group
Corporate
Communications
Group
Compliance
Office
Group
Operations
Group
Finance
Group
Audit
Group
Treasury
* 40% share of capital
Corporate Presentation, December 2014 | Key facts about DVB
Slide 20
Current shareholder base
Other shareholders
4.55%
95.45%
Corporate Presentation, December 2014 | Key facts about DVB
Slide 21
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 22
Development of business areas and products
1997
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
Year
Development
Formation of first foreign offices


First external rating (S&P and Moody’s)
Establishment of International Rail Finance (Frankfurt/Main)
Representative office Tokyo
Acquisition of Nedship Bank
Kick-off Internal Rating Model (Basel II)
Rail Finance Team (New York)
Sale of shareholding in Union Asset Management Holding
Establishment of Aviation Research
Introduction risk-bearing concept
Sale of ReiseBank Group
2007
2008
2009

Founding of ITF Suisse AG, Zurich


Expansion of Investment Management activities
with railway and cruise funds

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


Merging Shipping & Intermodal Investment Management
activities under SIIM

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

2010



Streamlining of head office operations
Formation of Container Box Unit in Shipping
Establishment of Land Transport Research
Major share of TES Holdings Ltd




Central bank function for Sparda banks
Establishment of Aviation Asset Management






Withdrawal from the Transport Infrastructure segment



Non-core domestic lending compiled in special exit unit
Establishment of Shipping Research
2003
Establishment of Cruise Finance Unit in Shipping

Closing of remaining domestic branches
Start of Corporate Finance
2002
2005
Establishment of FPSO Unit in Shipping

Sale of DVB Processing GmbH
2001
Establishment of AERO Engine Finance Unit
2006



Closure of nine domestic branches
2000
2004

First outsourcing of non-core activities: securities settlements
1999
Development
Establishment of DVB Capital Markets in New York
Acquisition of LTCB’s Shipping & Aviation portfolio
1998
Year




Corporate Presentation, December 2014 | Journey of success since 1997
Slide 23
Total assets and customer lending
HGB1) IFRS
+342%
22.0
23.8
23.4
19.3
17.4
Total
assets
[€ bn]
17.3
13.2
9.5
5.3
6.6
1997
11.0
9.3
9.1
9.3
10.9
11.1
6.9
1999
2001
2003
2005
2007
2009
2011
+940%
21.7
19.2
18.5
22.2
20.8
17.3
Customer
lending2)
[€ bn]
14.4
7.7
2.0
1997
1) German
31 Dec 2013
3.0
8.6
10.8
8.0
7.6
12.0
8.2
4.2
1999
2001
2003
2005
2007
2009
2011
31 Dec 2013
Commercial Code (HGB)
of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments and derivatives – nominal volume
2) Aggregate
Corporate Presentation, December 2014 | Journey of success since 1997
Slide 24
Operating profit/consolidated net income before taxes
Conversion
completed
[€ mn]
147.7
HGB1) IFRS
+6,416%
141.4
131.1
118.7
123.8
101.5
100.2
86.6
58.5
47.0
44.8
51.8
35.7 36.1
22.8
1.9
1997
6.7
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
1) German
Corporate Presentation, December 2014 | Journey of success since 1997
2012
2013
Commercial Code (HGB)
Slide 25
Development of business volume &
consolidated net income before taxes
[€ bn]
[€ mn]
50
140
124.9
120
40
110.2
110.4
100
104.0
30
80
76.1
1.9
20
1.3
1.2
60
1.9
1.8
40
10
19.3
17.3
22.0
23.8
23.4
20
0
0
2009
2010
Total assets
2011
Contingent liabilities
Corporate Presentation, December 2014 | Journey of success since 1997
2012
2013
Consolidated net income
Slide 26
Development of DVB share price
SX7E Index
[points]
DVB GF
Equity [€]
500
30 Dec 2013
30
450
25
400
DVB GF
Equity
Last Price
€24.60
350
20
300
250
15
200
150
10
SX7E Index1)
Last Price
141.30 points
100
50
5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1) SX7E
Corporate Presentation, December 2014 | Journey of success since 1997
= Dow Jones Euro Stoxx Bank Index; Source: Bloomberg
Slide 27
Payout ratio
[%]
[€ mn]
180
40
37.4
160
35
140
30
126.6
26.5
120
26.0
107.1
80
25
98.7
100
82.8
79.2
77.3
74.6
25.2 110.7
22.0
105.2
20
15
60
46.7
40
10
27.9
27.9
27.9
27.9
27.9
20
5
0
0
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
Corporate Presentation, December 2014 | Journey of success since 1997
Slide 28
Market capitalisation and dividends
Market capitalisation
[€ mn]
Dividends
[€]1)
1,400
1.400
1,40
1.40
1,213
1,123
1.200
1,200
1,162
1,162
1,113
1,127
1,143
1,00
1.00
1.000
1,000
0.84
811
800
0.80
0,80
709
0.60
0,60
600
0.60
0.26
400
200
1,20
1.20
0.36
314
0.36
270
212
178
240
0.60
0.60
0.60
0.60
0.50
0.40
0,40
264
0.30
306
177
0.60
0.15
0.15
2001
2002
0.20
0.20
0.23
2003
2004
2005
0.20
0,20
0.00
0,00
0
1997
1998
1999
2000
1) Previous
2006
2007
2008
2009
2010
2011
2012
2013
years’ figures adjusted in order to reflect the 10-for-1 share split carried out on 15 November 2008
Corporate Presentation, December 2014 | Journey of success since 1997
Slide 29
Rating development
Dec
2011
Mar
2011
Jan
2009
Dec
2006
Aug
2006
Long-term counterparty credit rating
A+
A
A
A
A-
Short-term credit rating
A-1
A-1
A-1
A-1
A-2
Outlook
stable
stable negative
Aug
2012
Jun
2009
Jan
2009
Long-term issuer default rating
A+
A+
A+
Short-term issuer default rating
F1+
F1+
F1
Debt Issuance Programme:
Long-term senior unsecured
Short-term senior unsecured
A+
F1+
1)
stable positive
1) Within the scope of the German Co-operative Financial Services Network’s Rating
Corporate Presentation, December 2014 | Journey of success since 1997
Slide 30
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 31
DVB’s success factors in 2014
1
Focussed asset financing bank
2
Well-diversified portfolio
3
Experienced personnel
4
Strong capital, Basel III compliant
5
Matched funding
6
Built on DVB’s core risk management function
Corporate Presentation, December 2014 | Financials
Profitable
throughout
all cycles
Slide 32
At a glance – Income statement
1 Jan 2014−
30 Sep 2014
1 Jan 2013−
30 Sep 2013
%
Net interest income
€162.5 mn
€174.0 mn
-6.6
Allowance for credit losses
€-28.5 mn
€-45.0 mn
-36.7
Net interest income after allowance for credit losses
€134.0 mn
€129.0 mn
3.9
€73.2 mn
€79.0 mn
-7.3
€7.9 mn
€-1.4 mn
--
€-136.5 mn
€-125.7 mn
8.6
€2.2 mn
€-3.8 mn
--
€80.8 mn
€77.1 mn
4.8
€-8.2 mn
€19.1 mn
--
Consolidated net income before taxes
€72.6 mn
€96.2 mn
-24.5
Consolidated net income (after taxes)
€58.1 mn
€81.8 mn
-29.0
[IFRS]
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
Corporate Presentation, December 2014 | Financials
Slide 33
Development of key ratios
Cost/income ratio [%]
57.4
Return on equity before taxes [%]
47.1
Target
ielwert value
≤ 50%
50 %
10.6
Target value for 2014:
10–12%
7.6
30 Sep 2014
30 Sep 2013
Corporate Presentation, December 2014 | Financials
30 Sep 2014
30 Sep 2013
Slide 34
Financial calender
25 June 2015
19 March 2015
2014
5 December
Annual General Meeting at the Deutsche Nationalbibliothek,
Adickesallee 1, Frankfurt/Main
Annual Accounts Press and Analyst Conference
13th Declaration of Compliance (2014/2015)
Corporate Presentation, December 2014 | Financials
Slide 35
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 36
New Transport Finance business
Shipping
Finance
Aviation
Finance
Land Transport
Finance
Offshore
Finance
New business
in Transport
Finance
30 Sep 2014
New business
in Transport
Finance
30 Sep 2013
58
34
13
17
122
101
€1,799.0 mn
€1,383.8 mn
€480.1 mn
€489.7 mn
€4,152.6 mn
€2,712,4 mn
€111.8 mn
€23.8mn
--
--
€135.6 mn
€41.8 mn
€1,687.2 mn
€1,360.0 mn
€480.1 mn
€489.7 mn
€4,017.0 mn
€2,670.6 mn
€31.0 mn
€40.7 mn
€36.9 mn
€28.8 mn
€34.0 mn
€26.9 mn
Avg. margin
279 bp
244 bp
237 bp
290 bp
263 bp
308 bp
Leading role
90.1%
98.3%
39.7%
100.0%
88.2%
79.8%
No. of new
deals
Underwriting
Syndicated
Final take
Avg. deal size
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 37
Customer lending volume
30 Sep 2014 31 Dec 2013
[€ bn]
%
Shipping Finance
9.7
9.2
5.4
Aviation Finance
6.7
6.4
4.7
Offshore Finance
2.1
2.0
5.0
Land Transport Finance
1.9
1.6
18.8
ITF Suisse
0.9
0.8
12.5
Investment Management
0.5
0.5
--
Business no longer in line
with DVB’s strategy
0.2
0.3
-33.3
20.8
30 Sep 2014 31 Dec 2013
[US$ bn]
Shipping Finance
44.1%
Offshore Finance
9.5%
5.8
12.2
12.7
-3.9
Aviation Finance
8.4
8.9
-5.6
Offshore Finance
2.6
2.8
-7.1
Land Transport Finance
2.4
2.2
9.1
ITF Suisse
1.1
1.1
--
Investment Management
0.7
0.6
16.7
Business no longer in line
with DVB’s strategy
0.3
0.3
--
27.7
28.6
by region
%
Shipping Finance
Total
Investment Management
2.3%
ITF Suisse
Business no longer in line
4.1%
with DVB’s strategy
Land Transport Finance
0.9%
8.6%
Aviation Finance
30.5%
22.0
Total
by business division
-3.1
Middle East/Africa
3.6%
Offshore
Australia/New Zealand
4.1%
0.9%
South America
4.5%
Asia
17.3%
Europe
45.5%
North America
24.1%
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 38
Shipping Finance portfolio by asset type
Total lending volume 30 Sep 2014: €9.7 bn
Cruise ships
3.1%
Ferries, passenger
vessels
3.2%
Others
5.0%
Container
boxes
4.9%
Tankers
43.2%
davon:
12.5% Product tankers
12.3% Crude oil tankers
9.4% Gas tankers
9.0% Chemical tankers
Total lending volume 31 Dec 2013: €9.2 bn
Ferries,
passenger vessels
3.6%
Cruise ships
4.0%
Others
5.9%
Tankers
43.5%
davon:
12.9% Crude oil tankers
11.9% Product tankers
10.0% Chemical tankers
8.7% Gas tankers
Container
boxes
5.5%
Container
carriers
16.6%
Container
carriers
14.8%
Bulk carriers
24.0%
Bulk carriers
22.7%
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 39
Aviation Finance portfolio by asset type
Total lending volume 30 Sep 2014: €6.7 bn
Regional jets
5.5%
thereof:
4.8% Embraer
0.6% Bombardier
0.1% Airbus
Freighters
7.9%
thereof:
7.2% Boeing
0.7% Airbus
Widebody pax
33.2%
thereof:
16.6% Airbus
16.6% Boeing
Turboprops
0.6% (only ATR)
Narrowbody pax
52.8%
thereof:
26.6% Boeing
26.2% Airbus
Total lending volume 31 Dec 2013: €6.4 bn
Regional jets
5.7%
thereof:
5.0% Embraer
0.7% Bombardier
Freighters
8.1%
thereof:
7.4% Boeing
0.7% Airbus
Narrowbody pax
49.4%
thereof:
25.0% Boeing
24.4% Airbus
Widebody pax
36.8%
thereof:
18.5% Airbus
18.2% Boeing
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 40
Offshore Finance portfolio by asset type
Total lending volume 30 Sep 2014: €2.1 bn
FPSOs
1.5%
Drillships
2.5%
Seismic survey
vessels
5.3%
Offshore
construction
vessels
6.5%
Multi-function
service vessels
6.6%
Rigs
13.4%
Others
9.0%
Platform supply
vessels
28.3%
Total lending volume 31 Dec 2013: €2.0 bn
FPSOs
Drillships 1.6%
3.6%
Others
10.8%
Seismic survey
vessels
4.7%
Anchor
handlers
30.9%
Offshore
construction
vessels
4.8%
Multi-function service
vessels
6.2%
Anchor
handlers
26.9%
Rigs
9.2%
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Platform
supply vessels
28.2%
Slide 41
Land Transport Finance portfolio by asset type
Total lending volume 30 Sep 2014: €1.9 bn
On road
8.1%
thereof:
7.8% Container chassis
0.3% Tank containers
Business no longer in line with
DVB’s strategy
0.3%
On rail
91.6%
thereof:
54.8% Freight cars
21.1% Locomotives
14.6% Regional train sets
0.9% Passenger coaches
0.2% City/commuter traffic
Total lending volume 31 Dec 2013: €1.6 bn
On road
9.4%
thereof:
9.0% Container chassis
0.4% Tank containers
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
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 42
Portfolio collateralisation
Loan-to-value ratio (%) – relation between drawn loans and the market value of the assets financed
[%]
100
90
83.4
83.2
80
70
73.7
77.0
74.6 74.3 73.0
69.3
74.5
72.5 70.8
77.7 78.1 76.3
70.1
59.8 58.0
60
54.4 52.8 54.0
50
40
30
20
10
0
Shipping Finance
Aviation Finance
2009
2010
Offshore Finance
2011
2012
Land Transport Finance
2013
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 43
Instruments for sustainable dealing with credit risks
Intensive
DVB in-house
research
Close contact
with clients
Close
monitoring of
compliance
with all
lending
agreements
Quarterly
portfolio
stress tests
 Early
Warning
List
Closely
Monitored
List
Watch
List
 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
 e. g. specific
covenants in the
Shipping Finance
contracts, like
value
maintenance
clauses
 Identification of
potentially higher
risks in case the
market
environment
continues to
deteriorate
 Early detection of
increased risks of
potential problem
exposures
 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
 Basis: changing
asset values
(specific haircuts)
and
counterparties’
creditworthiness
(increase of
probability of
default)
Corporate Presentation, December 2014 | Transport Finance & Investment Management portfolios
Slide 44
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 45
Length of client relationship by business division 2013
Total
64.3
By business division [%]
40.8
3−5 years
5−10 years
1 to 3 years
7.5%
3 to 5 years
10.6%
15.1
25.0
26.3
13.2
11.9
6.6
9.4
11.1
11.6
0.0
1−3 years
4.2
5.8
0.0
< 1 year
0.0
3.3
1.7
0.0
1.3
1.9
6.9
7.6
14.0
25.7
10 to 15 years
24.2%
23.9
23.8
43.0
48.9
52.8
15 years and longer
7.7%
Less than 1 year
2.3%
5 to 10 years
47.7%
10−15 years 15 years and
longer
Shipping Finance
Aviation Finance
Offshore Finance
Land Transport Finance
Investment Management
Corporate Presentation, December 2014 | Clients and accolades
Slide 46
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, December 2014 | Clients and accolades
Slide 47
Deal of the Year 2013
Aviation Finance – Marubeni Corporation
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.
Corporate Presentation, December 2014 | Clients and accolades
Slide 48
Deal of the Year 2013
Offshore Finance – Marine Assets Corporation
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.
Corporate Presentation, December 2014 | Clients and accolades
Slide 49
Deal of the Year 2013
Land Transport Finance – Alpha Trains
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.
Corporate Presentation, December 2014 | Clients and accolades
Slide 50
Some important deals 2013 – Shipping Finance
AlmiTankers
Golar LNG
US$80 mn financing of
newbuild VLCC and Aframax
US$80 mn
Arranger
US$1.1 bn Export Credit Financing
8 x LNG carriers
US$55 mn
Mandated Lead Arranger
Intermodal Investment Fund IV
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
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
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
Navig8 Product Tankers
16 x LR2 newbuild product tankers
50% of the sponsor equity
Private placement in total US$320 mn
Anchor investor
Navios Maritime Holdings
4 x Panamax bulk carriers
built 2006 (1) and 2005 (3)
US$40 mn
Bilateral
Corporate Presentation, December 2014 | Clients and accolades
Slide 51
Some important deals 2013 – Aviation Finance
Philippine Airlines
DVB‘s
Aviation
Asset
Management
DVB‘s
Aviation
Investment
Management
Allegiant Air
Jazeera Airways
Term Loan
4 x A320-200
Arranger
Finance Lease
3 x new A320-200
Arranger
Finance Lease
1 x new A330-300
1 x A321-200
1 x V2533-A5 spare engine
Arranger
LOT
Transportation Partners
Financial Advisory
with respect to the financing of
5 x new B787-8
Operating Lease Financing
2 x B737-800 on lease to Lion Air
Arranger
Malaysia Airlines
United Airlines
Finance Lease
2 x new A330-300
Arranger
Term Loan
3 x new B737-900ER
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
Marubeni Corporation
Operating Lease Financing
2 x A320-200 on lease to Asiana Airlines
Arranger
M&A Advisory
in relation to the acquisition
of a 15.25% shareholding
in Aircastle Limited
Intrepid Aviation
ORIX Aviation Systems
Operating Lease Financing
B777-300ER on lease to THAI
Arranger
Operating Lease Financing
1 x new B787-8 on lease to TUI Travel
Arranger
Corporate Presentation, December 2014 | Clients and accolades
Slide 52
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, December 2014 | Clients and accolades
Slide 53
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
Volstad Shipping
NOK350.0 mn Term Loan Facilities
To part finance
3 x offshore support vessels
Arranger
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
Corporate Presentation, December 2014 | Clients and accolades
Slide 54
Accolades 2013/2014
2014
2013
 Rail Finance Innovator of the Year
 Global Transport Finance – Dec 2014
 Rail Finance Deal of the Year – Europe
 Global Transport Finance – Dec 2014
 The Ship Finance Award 2013
 Seatrade Asia – Jun 2013
 Used Aircraft Deal of the Year 2012
 Airfinance Journal – Apr 2013
 Editor’s Choice Award 2013 – Navigator Gas
 Marine Money – Mar 2013
 Editor’s Choice Award 2013 – Sovcomflot
 Marine Money – Mar 2013
 Contribution to Ship Finance 2013
 Marine Money – Mar 2013
Corporate Presentation, December 2014 | Clients and accolades
Slide 55
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 56
Total capital (CRR) and capital ratios
[€ mn]
30 Sep 2014
1,361.6
1,159.2
202.4
0.0
Common equity
tier 1
Additional tier 1
Tier 2 capital
Total capital
Capital ratios ‒ Basel III
(following the confirmation of profits)
Tier 1 ratio:
18.0%
Total capital ratio:
Corporate Presentation, December 2014 | Own funds and refinancing
21.1%
Slide 57
Funding structure
30 Sep 2014: €20.8 bn
31 Dec 2013: €20.3 bn
Short-term funding
5.5%
thereof:
2.9% Time deposit banks/clients
2.6% Collateral for derivatives
Short-term funding
4.3%
thereof:
2.3% Collateral for derivatives
2.0% Time deposit banks/clients
Long-term funding
94.5%
thereof:
51.2% Uncovered bearer bonds
38.3% Promissory notes/long-term deposits
2.8% Ship covered bonds
2.2% Own funds in accordance with the KWG
Long-term funding
95.7%
thereof:
50.7% Uncovered bearer bonds
40.1% Promissory notes/long-term deposits
3.3% Ship covered bonds
1.6% Own funds in accordance with the KWG
Corporate Presentation, December 2014 | Own funds and refinancing
Slide 58
Topics
1
Key facts about DVB
2
Journey of success since 1997
3
Financials
4
Transport Finance & Investment Management portfolios
5
Clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 59
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
US GDP growth is projected to be between 2.8% in 2014 and 3.0% 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.
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
Corporate Presentation, December 2014 | Outlook and targets 2014
Slide 60
Outlook 2014 – Shipping markets
Demand situation will generally be positive, with a cyclic recovery expected to take hold in key
commodity consuming 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.
Corporate Presentation, December 2014 | Outlook and targets 2014
Slide 61
Outlook 2014 – Aviation markets
Demand perspectives for passenger transport remain positive despite a world full of political and
economic uncertainty. Finally the airfreight markets have also returned to growth mode.
Global airline results are set to improve further. North American carriers show strong profitability. The
business model of traditional European (flag)carriers is under pressure from expanding Middle Eastern
long-haul competitors as well as European low-cost carriers, who may expand to long haul as well.
Airlines have demonstrated their ability to live with high fuel prices and the recent (temporary?) drop in
oil may boost the airline results short term. No impact (yet) of low fuel prices on the attractiveness of the
new generation fuel efficient aircraft, partly because of only modestly higher capital cost.
After already record orders in 2013, there are no indications of a slow down in ordering. This allows the
manufacturers to cautiously increase new aircraft production further in the coming years.
Increasing availability of new, more efficient aircraft designs will start to put more pressure on older
aircraft, especially in a future – as of yet not anticipated – downturn in the air transport market.
Aircraft lessors are generally doing well and attract new equity as well as now sometimes unsecured
debt funding. Occasional additional write-downs on older equipment shows this may be a weak spot.
In aircraft financing, commercial bank debt is cheap and abundant and has replaced a significant part of
the now more expensive ECA funding. Capital market products are also open for aviation related paper.
Corporate Presentation, December 2014 | Outlook and targets 2014
Slide 62
Outlook 2014 – Offshore markets
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.
Based on fundamentals, we expect oil prices to drop and end the year lower.
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.
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.
Corporate Presentation, December 2014 | Outlook and targets 2014
Slide 63
Outlook 2014 – Land Transport markets
Demand perspectives for passenger and freight transport are positive. However, freight performance in
Europe is some years away from the pre-crisis peak, although it grew with 1.6% in Germany – Europe’s
largest rail freight market – in 2013 and with 4.9% in the first half of 2014.
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 (41.5%), but
demand picked 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.
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).
Locomotive demand is weak in Australia and Europe. Current fleets must be better utilised first. Only
one manufacturer can deliver Tier 4 main line diesel locomotives in USA as from 1 January 2015.
Very strong level of new passenger train set deliveries for the European market.
Leasing companies continue to invest to increase their market share in Europe.
Competition in the banking market is increasing from the European Union funding, European Investment
Bank loans and capital markets.
Corporate Presentation, December 2014 | Outlook and targets 2014
Slide 64
Targets 2014
We keep on working intensely on reducing our risk positions
in parts of our shipping lending business.
We boost the efficiency of processes
in our Shipping Finance division.
We endeavour to expand the financing offers and advisory
services established in our new Offshore Finance division.
We focus on additional service offers for our clients,
with a particular focus on the capital markets business.
We continuously expand our funding sources, as well as
funding tools and structures.
We strive to achieve solid results for the 2014 business year,
which do not materially diverge from the previous year’s figures.
Corporate Presentation, December 2014 | Outlook and targets 2014
Slide 65
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
5
DVB’s clients and accolades
6
Own funds and refinancing
7
Outlook and targets 2014
8
Appendices
Slide 66
The Board of Managing Directors
Wolfgang F.
Driese
CEO and Chairman of
the Board of Managing Directors,
Bank director
RESPONSIBILITIES
OFFICES HELD
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
Chairman of the Supervisory Board
DVB Bank America N.V., Willemstad, Curaçao
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
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
CURRICULUM VITAE
Since 1997 CEO and Chairman of the Board Of Managing Directors of DVB Bank SE
1986 - 1997 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
1982 - 1986 Branch Manager of Trinkaus & Burkhardt KG, Munich, Head of International Corporate Division and
Member of the Board of Directors
1974 - 1982 Vice President Corporate Clients and Head of Marketing/Credit Department at Citibank AG, Munich
1971 - 1974 Degree in economic engineering from Munich Polytechnic College (Fachhochschule München)
1970 - 1971 Vocational training at Dresdner Bank AG, Munich
Corporate Presentation, December 2014 | Appendices
Slide 67
The Board of Managing Directors
Ralf
Bedranowsky
Member of the Board of
Managing Directors,
Bank director
RESPONSIBILITIES
OFFICES HELD
Client areas in business divisions
DVB Corporate Finance
Shipping Finance
Offshore Finance
Shipping & Intermodal Investment Management
Shipping Execution Management
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
Client areas in affiliates
DVB Capital Markets LLC
Product/service areas
Group Finance
Group Operations
CURRICULUM VITAE
Since July 2013 Member of the Board of Managing Directors of DVB Bank SE
2007 - 2013 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
2004 - 2007 Landesbank Hessen Thüringen, Member of the Board of Managing Directors
1980 - 2004 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
Corporate Presentation, December 2014 | Appendices
Slide 68
The Board of Managing Directors
Bertrand
Grabowski
Member of the Board of
Managing Directors,
Bank director
RESPONSIBILITIES
OFFICES HELD
Client areas in business divisions
Aviation Finance
Aviation Asset Management
Aviation Financial Consultancy
Aviation Investment Management
Land Transport Finance
Chairman of the Board of Directors
DVB Transport Finance Ltd, London,
United Kingdom
Client areas in affiliates
DVB Transport Finance Ltd
TES Holdings Ltd (40% shareholding)
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
Product/service areas
Group Audit
Group Treasury
CURRICULUM VITAE
Since 2005 Member of the Board of Managing Directors of DVB Bank SE
2001 - 2004 Citigroup London, Direktor Asset Finance Group
1998 - 2000 Crédit Agricole Indosuez, New York, Head of Aerospace Group for the Americas and Branch Manager
1990 - 1997 Crédit Agricole Indosuez, Tokyo, Head of Asian Aerospace Group and Branch Manager (as from 1995)
1984 - 1990 Banque Indosuez, Paris, Director Aerospace Group
1981 - 1984 Société Navale Delmas-Vieljeux, Paris, Vice President Finance & Treasury
1979 - 1981 Agefaforia, Paris, Associate
1975 - 1978 Ecole Supérieure des Sciences Economiques et Commerciales (ESSEC), Paris, MBA
Corporate Presentation, December 2014 | Appendices
Slide 69
Employees at DVB
30 Sep 2014:
577 active employees
LogPay Financial Services
Transport Finance/
Investment Management
30 Sep 2013:
559 active employees
LogPay Financial Services
49
55
219
Transport Finance/
Investment Management
303
Service areas
204
306
Service areas
Corporate Presentation, December 2014 | Appendices
Slide 70
Nationalities in DVB
577 active employees
DVB Group
303 active employees
Transport Finance/
Investment Management
31 other
nationalities
22 other
nationalities
German
Dutch
14.1%
19.1%
Greek
19.1%
3.8%
3.8%
Norwegian
41.6%
Greek
6.3%
5.2%
US-American
Norwegian
6.8%
16.2% German
6.3%
Singaporean
7.6%
11.4%
British
US-American
13.3%
Dutch
Corporate Presentation, December 2014 | Appendices
9.9%
Singaporean
15.5%
British
Slide 71
Accolades 2012
2012
 Bank Debt Deal of the Year 2012
 Marine Money Offshore – 2013
 Editor‘s Choice Award 2012 – Norskan Offshore
 Marine Money Offshore – 2013
 Shipping Financier of the Year 2012
 Lloyd’s List – Dec 2012
 Rail Finance Innovator of the Year 2011
 Global Transport Finance – Nov 2012
 Bank of the Year – International Transport Markets
 DealMakers Monthly – Sep 2012
 Sale/Leaseback Deal of the Year 2011
 Airfinance Journal – Apr 2012
 Predelivery Payment Deal of the Year 2011
 Airfinance Journal – Apr 2012
 North America Deal of the Year 2011
 Airfinance Journal – Apr 2012
 Leasing (East) Deal of the Year 2011
 Marine Money – Mar 2012
 Securitization Deal of the Year 2011
 Marine Money – Mar 2012
Corporate Presentation, December 2014 | Appendices
Slide 72
Accolades 2009−2011
2011
 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
2010
 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
2009
 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
Corporate Presentation, December 2014 | Appendices
Slide 73
Accolades 2008–2006
2008
 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
2007
 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
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
Corporate Presentation, December 2014 | Appendices
Slide 74
Accolades 1999–2005
2005
2004
2002
2001
2000
1999
 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
 Best Shipping Finance Research
 Shipping Equity Deal of the Year
 Most Innovative Shipping Finance Deal
 Best Ship Financier




 Most Professional Overall Finance Service to Shipping
 Aircraft Debt Deal of the Year – Europe
 Lloyd's Shipping Economist
 Jane's Transport Finance
 Best Overall Knowledge of the Tanker Sector
 Lloyd's Shipping Economist
 Most Innovative Ship Finance Institution Worldwide
 Lloyd's Shipping Economist
 Best Ship Financier
 Lloyd's List Maritime Asia
Corporate Presentation, December 2014 | Appendices
Lloyd's Shipping Economist
Jane's Transport Finance
Lloyd's Shipping Economist
Lloyd's List Maritime Asia
Slide 75
Chronicle and logos
1923
Foundation of Deutsche Verkehrs-Kredit-Bank AG (DVKB) in Berlin
1988
DVKB shares introduced to official trading on the FSE and BSE;
Deutsche Bundesbahn retains 75.1% and a free float of 24.9%
1995
DG BANK takes a majority share of 50.1% in Deutsche Verkehrs-Bank AG (DVB)
1997
DVB’s strategy focuses on the transportation industry
1998
Acquisition of the Global Aviation and Shipping Finance division of
the Long-Term Credit Bank of Japan: DVB goes international
1999/2000
Acquisition and integration of Nedship Bank N.V., closing of all German branches and
establishment of Transport Finance divisions (Shipping, Aviation and Land Transport)
2002
Change of corporate name: DVB Bank AG
2008
Merger of DVB Bank N.V. into DVB Bank AG and new legal form: DVB Bank SE
Corporate Presentation, December 2014 | Appendices
Slide 76
Contact
For further information please visit
www.dvbbank.com > Investors
Scanning this QR code with your smartphone
will forward you directly to our website
Contact person:
Elisabeth Winter
Head of Group Corporate Communications
Senior Vice President
Telephone: +49 69 9750 4329
email: [email protected]
DVB Bank SE
Platz der Republik 6
60325 Frankfurt /Main, Germany
[email protected], www.dvbbank.com
Corporate Presentation, December 2014 | Appendices
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, December 2014 | Appendices
Slide 78