DVB Bank Group Investor Presentation

Transcription

1 DVB Bank Group Investor Presentation Frankfurt/Main, January 2017 Slide 1

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, January 2017 Disclaimer Slide 2

3 Contents 01/ 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 02/ DVB Business model 20 Competitive strengths 03/ DVB Lending volume and portfolio data 26 Lending volume and new business 28 Shipping Finance portfolio 29 Aviation Finance portfolio 30 Offshore Finance portfolio 31 Land Transport Finance portfolio 32 Financial Institutions and Syndications portfolio 33 Corporate Finance portfolio 34 Investment Management portfolio Slide 3

4 01/ DVB Financials and outlook 5 Financial figures 12 Own funds and refinancing 14 Rating 15 Macroeconomic environment and targets 18 Financial calendar Slide 4

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 30 September 2016 and are not certified by auditors. Investor Presentation, January 2017 Financial figures Slide 5

6 Ad-hoc disclosure as of 14 November 2016 Adjustment of forecast for 2016; and intention of DZ BANK AG to strengthen DVB s capitalisation as well as to conduct a squeeze-out DVB Bank SE (DVB) corrects the forecast business performance communicated on 21 September 2016, by way of an ad-hoc disclosure, as follows: As the shipping crisis continues to escalate, the need for a further increase in allowance for credit losses on legacy exposures in Shipping Finance and Offshore Finance has emerged for the fourth quarter of As a result, DVB now expects a consolidated net loss before IAS 39 for 2016 that is anticipated to be in a low negative triple-digit million euro range. Likewise, DVB no longer anticipates being able to achieve the financial management indicators return on equity (before taxes), cost/income ratio, and Economic Value Added as forecast for the 2016 financial year in the 2015 Annual Report. DVB's tier 1 and total capital ratios in accordance with the CRR will remain adequate. Furthermore, DVB's parent company, DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, intends to strengthen DVB's capitalisation through appropriate measures, also against the background of stricter capital requirements for banks. Furthermore, the Board of Managing Directors of DZ BANK AG, Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, has notified the Board of Managing Directors of DVB Bank SE today that it intends to conduct a squeeze-out at DVB. Investor Presentation, January 2017 Financial figures Slide 6

7 Press release as of 14 November 2016 (1) DVB Bank Despite robust and valuable new business origination in the Bank s Transport Finance divisions, significant allowance for credit losses in legacy exposures in Shipping Finance and Offshore Finance have led to a loss of 27.3 million as at 30 September 2016 Ralf Bedranowsky, CEO and Chairman of DVB Bank SE's Board of Managing Directors, commented on DVB s consolidated results: "Underscoring the continued focus on its core international transportation markets, DVB closed a total of 102 transactions generating 4.2 billion in robust and valuable new business volume (previous year: 137 transactions with a volume of 5.0 billion). Net interest income rose to million (previous year: million). New business in Aviation Finance and Land Transport Finance continued to develop successfully. In the persistently difficult segments of the shipping industry, the Bank continues to be available to current clients, and selected new clients given reduced opportunities to originate new business, however, on a lower level. The Bank maintained its successful path in the fee and advisory businesses, increasing net fee and commission income by 3.8% to 79.8 million (previous year: 76.9 million). Moreover, DVB managed to keep general administrative expenses of million stable in line with the previous year ( million) in spite of continued high expenses incurred from regulatory-driven projects. To be continued on next slide Investor Presentation, January 2017 Financial figures Slide 7

8 Press release as of 14 November 2016 (2) Results were burdened by two factors: On the one hand, allowance for credit losses rose to million (previous year: 62.7 million) and was largely required for legacy exposures in the Shipping Finance portfolio and for financings in the Offshore Finance portfolio. Both have been suffering from the severe and prolonged crisis in their respective markets. The material market developments can be summarised as follows: There is ongoing and high tonnage overcapacity in numerous international shipping segments. In the recent past, governmental policies and speculative exuberance have led to a high number of newbuild orders especially at Chinese and Korean shipyards. Due to the influx of this new tonnage, charter rates have continued to decline: Offshore shipping charter rates have been under pressure since 2015 and in the first half of 2016, bulk carriers witnessed the lowest earnings since the shipping crises in the eighties. Container vessel charter rates have also been negatively affected during the last quarter due to this structural oversupply. Vessel values have developed correspondingly. These market distortions, which prevailed into the third quarter of 2016, heavily burdened the liquidity cushions of shipping clients, with increasing effects upon the banks involved. The geopolitical developments in the Eastern Mediterranean imposed an additional burden for specific shipping markets during the third quarter of DVB responded to these developments by recognising additional allowance for credit losses during the third quarter of On the other hand, net income from financial instruments in accordance with IAS 39 amounted to 13.8 million (previous year: 76.3 million) due to the non-recurrent nature of a substantial income in the previous year, which was generated in the Bank s Aviation Investment Management activities. Investor Presentation, January 2017 Financial figures Slide 8

9 At a glance Income statement [IFRS] 1 Jan Sep Jan Sep 2015 % Net interest income mn mn 11.1 Allowance for credit losses mn mn Net interest income after allowance for credit losses 11.5 mn 88.9 mn Net fee and commission income 79.8 mn 76.9 mn 3.8 Results from investments in companies accounted for using the equity method 6.4 mn 3.8 mn 68.4 Net other operating income/expenses 1) 6.6 mn -5.1 mn Total income (before IAS 39) 1) mn mn General administrative expenses 1) mn mn 0.4 Consolidated net income/loss before IAS 39, bank levy, BVR 2) Deposit Guarantee Scheme and taxes 1) mn 30.8 mn Net result from financial instruments in according with IAS 39 1) 13.8 mn 76.3 mn Consolidated net income/loss before bank levy, BVR 2) Deposit Guarantee Scheme and taxes 1) mn mn Consolidated net income/loss before taxes 1) mn 92.2 mn Consolidated net income/loss (after taxes) 1) mn 83.7 mn 1) The correction of an error in accordance with IAS 8.41 resulted in an adjustment of the previous year s figure. 2) National Association of German Cooperative Banks Investor Presentation, January 2017 Financial figures Slide 9

10 Consolidated net income, as at 30 September ( mn) Total income 1) General administrative expenses Net result from financial instruments in accordance with IAS 39 Expenses for the bank levy and the BVR 2) Deposit Guarantee Scheme (financial year) Income taxes Consolidated net income/ loss Total income 1)3) General administrative expenses 3) Net result from financial instruments in accordance with IAS 39 3) Expenses for the bank levy and the BVR 2) Deposit Guarantee Scheme (financial year) Income taxes Consolidated net income/ loss 3) 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/expences; 2) National Association of German Cooperative Banks 3) The correction of an error in accordance with IAS 8.41 resulted in an adjustment of the previous year s figure. Investor Presentation, January 2017 Financial figures Slide 10

11 Development of key ratios Return on equity before taxes 1) [%] Cost/income ratio 1) [%] Economic Value Added 1) [ mn] Sep Sep Sep Sep Sep Sep ) The correction of an error in accordance with IAS 8.41 resulted in an adjustment of the previous year s figure. Investor Presentation, January 2017 Financial figures Slide 11

12 Own funds (in accordance with the CRR) and capital ratios [ mn] 30 Sep , Common equity tier 1 capital Additional tier 1 capital Tier 2 capital Modified available equity Capital ratios Basel III Common equity tier 1 ratio: 12.1% Total capital ratio: 17.5% Investor Presentation, January 2017 Own funds and refinancing Slide 12

13 Funding composition (30 Sep 2016: 23.7 bn) Products 1) Investors 2) Short-term funding 6.5% thereof: 3.5% Cash collateral 3.0% Short-term deposits banks/customers Banks 14.6% Retail 1.9% DZ BANK 27.3% Long-term funding 93.5% thereof: 49.5% Senior-unsecured bonds 37.4% Promissory notes 3.2% Ship covered bonds 3.2% Subordinated liabilities 0.2% Long-term deposits 1) Nominal volume Institutional investors 46.8% Diversified, granular funding base More than 1,200 investors 2) Estimates Volksbanken Raiffeisenbanken cooperative financial network 9.4% Investor Presentation, January 2017 Own funds and refinancing Slide 13

14 Rating development Oct 2016 Dec 2011 Mar 2011 Jan 2009 Dec 2006 Aug 2006 Jul 2005 Aug 2004 Aug 2001 Dec 1999 Long-term Counterparty Credit Rating A+ A+ A A A A- A- BBB+ BBB+ A- Short-term Credit Rating A-1 A-1 A-1 A-1 A-1 A-2 A-2 A-2 A-2 A-2 Outlook negative stable stable negative stable positive stable stable negative stable 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-Programm: Long-term Senior Unsecured Short-term Senior Unsecured AA- F1+ A+ F1+ 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 Investor Presentation, January 2017 Rating Slide 14

15 Macroeconomic environment (1) Global growth as forecasted by the International Monetary Fund is projected to slow to 3.1% in The forecast, revised down by 0.1 percentage point for 2016 (3.2% in April 2016), reflects a more subdued outlook for advanced economies following the Brexit and weaker-than-expected growth in the US. These developments have put further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer. DVB agrees with this expert opinion and expects economic growth in the foreseeable future to remain volatile on the back of the following risk factors: geopolitical crises and their impact on the global economy through sanctions further development of commodity prices, in particular oil prices; global stock markets in decline and rising uncertainties surrounding market developments in the future; impact of the interest rate turnaround in the US on asset prices in industrial countries, as well as on capital flows in major emerging economies; and further development of the Chinese economy. Source: IMF, World Economic Outlook, October 2016 Investor Presentation, January 2017 Macroeconomic environment and targets Slide 15

16 Macroeconomic environment (2) The following developments are evident in the world: The US economy has lost momentum over the past few quarters, and the expectation of a pickup in the second quarter of 2016 has not been realised. However, growth is projected to continue at a moderate pace, supported by a firm labour market, expanding payrolls and an improving housing market. These forces are expected to offset the drag to net exports coming from the strengthening of the US dollar and slower growth in trading partners, the additional decline in energy and business investments and financial turbulences earlier in the year. The modest euro zone recovery is projected to proceed at a slightly lower pace. Lower oil prices, a modest fiscal expansion, and supportive financial conditions will support growth, while weaker investor confidence on account of uncertainty following the Brexit vote will weigh on activity. Potential growth is expected to remain weak, as a result of crisis legacies (high private and public debt, low level of investment, and eroding skills due to high long-term unemployment), aging effects, and slow total factor productivity growth. Growth in China is projected to slow down, projections are slightly higher than before, reflecting announced policy stimulus. The medium-term forecast assumes that the economy will continue to rebalance from investment to consumption and from industry to services, on the back of reforms to strengthen the social safety net and deregulation of the service sector. However, nonfinancial debt is expected to continue rising at an unsustainable pace, which together with a growing misallocation of resources casts a shadow over the medium-term outlook. Oil prices have rebounded in spite of rising uncertainty following the Brexit vote. After hitting a ten-year low in January 2016, oil prices rallied by 50 percent, to $45 in August, mostly due to involuntary production outages that temporarily brought some balance to the oil market. Given robust oil demand, the continued erosion of high-cost producers, and severe unplanned outages, markets expect the oil market to rebalance during the course of next year. Investor Presentation, January 2017 Macroeconomic environment and targets Source: IMF, World Economic Outlook, October 2016 Slide 16

17 Targets 2017 We shall endeavour to maintain the good operating profitability before IAS 39. Next to concentrating on lending in all four areas of our Transport Finance business, our particular attention will be on added-value services for our clients, such as capital markets and advisory services. We strive to avoid posting another loss. In this context, we intend to reduce the increased risk costs in the Shipping Finance and Offshore Finance divisions during the years 2017 and 2018, provided charter rates and vessels values will not experience a continued decline. Hence, we will continue to focus strongly on managing risks in these businesses. We plan to continue our stellar performance in Aviation Finance and Land Transport Finance, further strengthening our profitability in these businesses. We remain available to selected shipping clients in a market environment characterised by tough competition. Currently, there are fewer business opportunities on the shipping finance markets available both in terms of viable transactions and volumes. Numerous internationally active shipping finance providers continue to withdraw from the market, however, competition for the currently reduced volume of new business offering sustainable quality keeps intensifying. We will continue to successfully master regulatory-driven projects, as we have done to date. These successes will also contribute to our ability to distinguish ourselves from our competitors, and to raise the entry barriers for new competitors. As the shipping crisis continues to escalate, the need for a further increase in allowance for credit losses on legacy exposures in Shipping Finance and Offshore Finance has emerged for the fourth quarter of As a result, we now expect a consolidated net loss before IAS 39 for 2016 that is anticipated to be in a low negative triple-digit million euro range. Likewise, we no longer anticipate being able to achieve the financial management indicators return on equity (before taxes), cost/income ratio, and Economic Value Added as forecast for the 2016 financial year in the 2015 Annual Report. DVB's tier 1 and total capital ratios in accordance with the CRR will remain adequate. Investor Presentation, January 2017 Macroeconomic environment and targets Slide 17

18 Financial calendar March 2017 Annual Accounts Press and Analyst Conference, Frankfurt/Main 3 March 2017 Publication of the single-entity Annual Report 2016 on our website (available in German only) 31 March 2017 Publication of the German Group Annual Report 2016 on our website 11 May 2017 Publication of the Quarterly Statement Three-month results 2017 (for the first three months ending 31 March 2017) 22 June 2017 Annual General Meeting at the Deutsche Nationalbibliothek, Adickesallee 1, Frankfurt/Main 23 June 2017 Dividend payment (ISIN: DE ) 10 August 2017 Publication of the Half-Yearly Financial Report November 2017 Publication of the Quarterly Statement Nine-month results 2017 (for the first nine months ending 30 September 2017) 4 December 2017 Publication of the 16 th Declaration of Compliance (2017/2018) Investor Presentation, January 2017 Financial calender Slide 18

19 02/ DVB Business model 20 Competitive strengths Slide 19

20 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. Investor Presentation, January 2017 Competitive strengths Slide 20

21 DVB s unique business model Structured Asset Lending Shipping Finance Aviation Finance Offshore Finance Land Transport Finance Asset Management Client Account Risk Distribution & Loan Participations Corporate Finance Solutions Private Equity Sourcing & Investments Asset & Market Research Investor Presentation, January 2017 Competitive strengths Slide 21

22 DVB s ten competitive strengths Business model Business policy Organisation Human resources Products & services Asset & Market Research Credit portfolio Risk management Funding Own funds clearly focused, distinctively specialised, diversified in many aspects, cycle-neutral and international in scope conservative and sustainable transparent structures, swift information flow and prompt decisionmaking highly qualified and experienced customised and beyond the typical scope of banking sophisticated, renowned and award-winning diversified by multiple criteria and categories consistent and forward-thinking granular and maturity-matched strong capital base Investor Presentation, January 2017 Competitive strengths Slide 22

23 OPPORTUNITIES STRENGTHS 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information DVB s SWOT analysis Clearly focused business model with a unique specialisation, cycleneutral business approach and 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 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 Granular and 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 Several new initiatives have been introduced to increase the product portfolio and enhance cross-selling 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 DVB s reputation as a reliable partner to the international transport industry Higher cost of liquidity, compared with most competitors Direct correlation between our 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 No material client deposits Exposure to the euro/us dollar exchange rate, with an impact on growth and results High level of early repayments negatively impacting the net interest margin Rising threat of recession, on a global scale Significant decline in transport asset values, in various market segments Distortions on the global financial markets Indebtness of certain industrial nations and emerging economies Rise of the US dollar against the euro Further increasing regulatory requirements Volatility of commodity prices, especially oil prices WEAKNESSES THREATS Investor Presentation, January 2017 Competitive strengths Slide 23

24 Instruments for sustainable dealing with credit risks Intensive research and close client contact Close monitoring of compliance with all lending agreements Early Warning List Closely Monitored List Watch List Loan Loss Provision 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 by quarterly portfolio stress tests Basis: changing asset values (specific haircuts) and counterparties creditworthiness (increase of probability of default) 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 In general, transactions are placed on the LLP List if risks have materialised, and the deal has been classified as defaulted Investor Presentation, January 2017 Competitive strengths Slide 24

25 03/ DVB Lending volume and portfolio data 26 Lending volume and new business 28 Shipping Finance portfolio 29 Aviation Finance portfolio 30 Offshore Finance portfolio 31 Land Transport Finance portfolio 32 Financial Institutions and Syndications portfolio 33 Corporate Finance portfolio 34 Investment Management portfolio Slide 25

26 Customer lending volume [ bn] Shipping Finance Aviation Finance Offshore Finance Land Transport Finance ITF Suisse Investment Management Business no longer in line with DVB s strategy 30 Sep Dec % by business division Investment Management 2.1% ITF Suisse Land Transport Finance 2.5% 7.0% Offshore Finance 9.1% Business no longer in line with DVB s strategy 0.4% Shipping Finance 45.4% Total Aviation Finance 33.5% [US$ bn] 30 Sep Dec 2015 % by region Shipping Finance Aviation Finance Offshore Finance Land Transport Finance ITF Suisse South America Offshore 2.5% 3.3% Middle East & Africa 5.4% Australia & New Zealand 0.4% Investment Management Business no longer in line with DVB s strategy Asia 16.9% Europe 48.8% Total North America 22.7% Investor Presentation, January 2017 Lending volume and new business Slide 26

27 New Transport Finance business Shipping Finance Aviation Finance Offshore Finance Land Transport Finance New business in Transport Finance 30 Sep 2016 New business in Transport Finance 30 Sep 2015 No. of new deals Underwritten 1,319.3 mn 2,378.0 mn 93.7 mn mn 4,173.1 mn 5,037.2 mn Avg. deal size 32.2 mn 50.6 mn 18.7 mn 42.5 mn 40.9 mn 36.8 mn Leading role 86.4% 92.3% 76.2% 57.0% 86.8% 78.1% Investor Presentation, January 2017 Lending volume and new business Slide 27

28 Shipping Finance portfolio (30 Sep 2016: 11.0 bn) Total lending volume by asset type Total lending volume by region Ferries, passenger vessels 1.9% Container boxes 1.9% Car carrier 3.5% Cruise ships 1.9% Others 1.4% Tankers 46.9% thereof: 14.5% Crude oil tankers 11.0% Gas tankers 10.7% Product tankers 10.7% Chemical tankers Offshore 2.8% Central America & Caribbean 1.0% Middle East & Africa 5.4% Container carriers 17.6% Asia & Australia 16.4% Europe 53.7% Bulk carriers 24.9% North & South America 20.7% Investor Presentation, January 2017 Shipping Finance portfolio Slide 28

29 Aviation Finance portfolio (30 Sep 2016: 8.1 bn) Total lending volume by asset type Total lending volume by region Regionaljets 5.9% thereof: 5.5% Embraer 0.4% Bombardier Freighters 4.4% thereof: 3.9% Boeing 0.5% Airbus Turboprops 1.5% thereof: 1.3% ATR 0.2% Bombardier Narrowbody pax 54.0% thereof: 27.1% Boeing 26.9% Airbus Middle East & Africa 8.5% Asia 23.1% Offshore 2.5% South & Central America 2.4% Australia & Oceania 0.8% Europe 37.3% Widebody pax 34.2% thereof: 19.8% Boing 14.4% Airbus North America 25.4% Investor Presentation, January 2017 Aviation Finance portfolio Slide 29

30 Offshore Finance portfolio (30 Sep 2016: 2.2 bn) Total lending volume by asset type Total lending volume by region Floating Production 8.3% Drilling 20.2% thereof: 15.8% Rigs 4.4% Drillships Offshore support 47.2% thereof: 24.9% Platform supply vessels 19.9% Anchor handlers 2.4% Oil well service vessels North America 8.5% Offshore 10.6% Middle East & Africa 0.8% Europe 51.5% Asia 14.2% Subsea 24.3% thereof: 10.5% Offshore construction vessels 5.3% Seismic survey vessels 4.2% Multi-function service vessels 1.6% Standby rescue vessels 2.7% Others Central/South America & Caribbean 14.4% Investor Presentation, January 2017 Offshore Finance portfolio Slide 30

31 Land Transport Finance portfolio (30 Sep 2016: 1.7 bn) Total lending volume by asset type Total lending volume by region Rail-related 8.0% thereof: 7.9% Container chassis 0.1% Tank containers Australia & Oceania 2.6% North America 42.0% Europe 55.4% Rail-based 92.0% thereof: 59.9% Freight cars 21.3% Locomotives 10.4% Regional passenger train sets 0.4% Passenger coaches Investor Presentation, January 2017 Land Transport Finance portfolio Slide 31

32 Financial Institutions and Syndications portfolio (30 Sep 2016: mn) Total sell-down volume by business division Shipping Finance 18.0% Aviation Finance 58.5% Land Transport Finance 23.5% Investor Presentation, January 2017 Financial Institutions and Syndications portfolio Slide 32

33 Corporate Finance portfolio (30 Sep 2016) Revenue by business division Revenue by products Land Transport Finance 12.1% Advisory and Mergers & Acquisitions 44.7% Offshore Finance 19.3% Aviation Finance 42.7% Shipping Finance 25.9% Capital Markets 55.3% Investor Presentation, January 2017 Corporate Finance portfolio Slide 33

34 Investment Management Investment volume (30 Sep 2016) Breakdown of the investment volume by fund SIIM 29.7% thereof: 26.0% NFC Shipping Funds 1.9% Stephenson Capital 1.8% Container Funds AIM 70.3% Freighter lease 7.0% Other 1.2% Passenger narrowbody 48.0% Car carriers 4.7% Bulk carrier 7.0% Container ships 8.9% Other investments 14.9% Offshore vessels 9.0% SIIM-shipping portfolio by asset type mn Tankers 55.5% thereof: 20.7% Chemical tankers 16.9% LPG tankers 9.7% Product tankers 5.0% LNG tankers 3.2% Crude oil tankers Passenger widebody 25.0% AIM by asset type mn Disassembly 18.8% thereof: 16.3% Widebody 2.4% Engines 0.1% Narrowbody Investor Presentation, January 2017 Investment Management portfolio Slide 34

35 04/ DVB Further information 36 Shareholder base 37 Board of Managing Directors 38 Staff 39 Imprint 40 Photo credits Slide 35

36 Current shareholder base Other shareholders 4.53% 95.47% Investor Presentation, January 2017 Shareholder base Slide 36

37 Responsibilities of DVB s Board of Managing Directors as of 1 January 2017 Ralf Bedranowsky CEO and Chairman of the Board of Managing Directors Business Process Support Group Audit Group Compliance Office Group Controlling Group Corporate Communications Group Finance Group Human Resources Group Legal ITF International Transport Finance Suisse AG LogPay Financial Services GmbH David Goring-Thomas Member of the Board of Managing Directors Group Treasury Transaction and Loan Services Aviation Finance Aviation Financial Consultancy Aviation Investment Management Financial Institutions and Syndications Land Transport Finance DVB Transport Finance Ltd Christian Hagemeyer Member of the Board of Managing Directors Group Risk Management Aviation Credit Aviation Research Credit and Asset Solution Group Land Transport Credit Land Transport Research Shipping and Offshore Credit Shipping and Offshore Research L.H. (Bart) Veldhuizen Member of the Board of Managing Directors Information Technology Corporate Finance Offshore Finance Shipping Finance Shipping and Intermodal Investment Management DVB Capital Markets LLC Product/service areas Client areas in business divisions Client areas at affiliates Investor Presentation, January 2017 Board of Managing Directors Slide 37

38 Employees at DVB 30 Sep 2016: 616 active employees 62 Transport Finance/ Investment Management Greek 2.9% 34 other nationalities 16.7% German 42.2% Norwegian 3.4% US-American 4.7% Singaporean 6.2% Service areas Dutch 11.5% British 12.4% Investor Presentation, January 2017 Staff Slide 38

39 Imprint For further information please visit After scanning this QR with your smartphone, you will have direct access to our website. Responsible for the content of this presentation and contact: Elisabeth Winter Lisa Boose-Kirwel Head of Group Corporate Communications Group Corporate Communications Managing Director Manager Investor Relations Phone: Phone: DVB Bank SE Platz der Republik Frankfurt/Main, Germany info@dvbbank.com, Investor Presentation, January 2017 Imprint Slide 39

40 Photo credits Front Cover: Shipping Finance: Pages 1, 5, 15 17, 20 21, 27: GasLog Ltd, Monaco Aviation Finance: Pages 1, 5, 15 17, 20 21, 27: Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands Offshore Finance Pages 1, 5, 15 17, 20 21, 27: Songa Offshore Management Ltd, Limassol, Cyprus Land Transport Finance: Pages 1, 5, 15 17, 20 21, 27: Wouter Radstake, DVB Bank SE, Frankfurt/Main, Germany 01/ DVB Financials and outlook Page 4: istock/susanneb Page 6: istock/studiocasper Page 7 Ralf Bedranowsky: Frank Rumpenhorst and DVB Bank SE, Frankfurt/Main, Germany 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 and L.H. (Bart) Veldhuizen: Frank Rumpenhorst and DVB Bank SE, Frankfurt/Main, Germany Page 37 Christian Hagemeyer: DVB Bank SE, Frankfurt/Main, Germany Page 39: DVB Picture Archive Investor Presentation, January 2017 Photo credits Slide 40