Oesterreichische Kontrollbank AG

Transcription

1 AT&S AG Oesterreichische Kontrollbank AG Investor Presentation October 2015 AUSTRIAʼS EXPORT CREDIT AGENCY

2 OKB Agent for the Administration of Export Guarantees and Export Financing AUSTRIAʼS EXPORT CREDIT AGENCY

3 Excellence as a Quasi-Sovereign Issuer OKB plays a critical role in the Austrian economy as the country s sole agent for the administration of export guarantees and export financing Explicit, unconditional and irrevocable guarantee of the Republic of Austria Aaa/AA+ rating Zero-risk weighting High asset quality Long history of successful capital markets transactions Level 1 HQLA status in Europe Exempt from European BRRD 3

4 OKB Leading Provider of Export Services Republic of Austria Federal Ministry of Finance Exporter/ Hausbank Financing Export Loans Oesterreichische Kontrollbank AG (OKB) Administration of Export Guarantees Issuer Refinancing via Debt Issues Investor 4

5 Guarantee of the Republic of Austria Full Faith and Credit Austria will unconditionally guarantee the due and punctual payment of principal of and interest and Additional Interest, if any, on the Guaranteed Debt Securities under the Export Financing Guarantees Act of 1981, as amended. Such Guarantees will be general obligations of Austria and the full faith and credit of Austria will be pledged for the performance thereof. The Act authorizes Austria to guarantee the Guaranteed Debt Securities if they meet certain conditions relating to, among other things, the maximum principal amount of Guaranteed Debt Securities which may be issued at any one time and the maximum interest rate. Extracted from the 2015 Base Prospectus of the Global Issuance Facility, p Prospectus of the Global Issuance Facility 5

6 OKB Rating Reports Moody s Aaa (negative) Credit opinion: October 7, 2015 Outlook changed to stable: March 6, 2014 Strong guarantee framework is basis for OKB s franchise Asset quality and liquidity are a function of the government guarantee Very high likelihood of support from the Republic of Austria as a result of OKB s role for the Austrian export driven economy Standard & Poor s AA+ (stable) Rating Report: August 18, 2015 Outlook revised to stable: January 30, 2013 Extremely low-risk loan portfolio, comprised almost entirely of fully secured loans Almost certain likelihood of extraordinary support from the Republic of Austria, based on critical role for an integral link to Austria 6

7 OKB s Shareholders OKB s shareholders The share capital of EUR 130 million is divided into 880,000 ordinary no par value shares in registered form, not listed. Interest in % CABET-Holding-GmbH, Vienna (UniCredit Bank Austria Group) UniCredit Bank Austria AG, Vienna Erste Bank der oesterreichischen Sparkassen AG, Vienna Schoellerbank Aktiengesellschaft, Vienna AVZ Finanz-Holding GmbH, Vienna Raiffeisen Zentralbank Österreich Aktiengesellschaft, Vienna BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft, Vienna Raiffeisen OeKB Beteiligungsgesellschaft mbh, Vienna Oberbank AG, Linz Bank für Tirol und Vorarlberg Aktiengesellschaft, Innsbruck BKS Bank AG, Klagenfurt Volksbank Wien-Baden AG, Wien

8 Consolidated Financial Information (EUR million) Total assets 35,802 37,978 32,768 28,964 28,002 of which export financing 34,908 36,468 31,445 27,531 26,446 Total equity Operating result Net profit for the year Capital ratio* 73.7% 71.1% 69.7% 83.3% 67.4% Number of employees No loan loss provisions since the inception of the export financing scheme No impaired assets on the balance sheet * Basel III 8

9 Export Guarantees Broadly Diversified by Sector and Region Servicing Top Exporters Construction 8% Pulp and Paper 5% Other Machinery 9% Energy and Electricals 23% Outstandings as of September EUR 26 bn 1 Asia and Middle East 33% North and Latin America 7% EU-28 6% Telecommunication 1% Metal and Metallurgy 19% Other Goods & Services 12% Agriculture and Food 2% Africa 7% Rest of Europe 36% Water and Environment 7% Chemical and Plastic 3% Traffic, Transport, Vehicles 11% Comprehensive policies 11% 1 Including Promissory Notes 9

10 Austria s Economy An Overview AUSTRIAʼS EXPORT CREDIT AGENCY

11 Austria a Strong Economy at the Heart of Europe Austria Euro-Zone (19) Robust Economy in a Challenging Environment¹ Diversified economy Sound labor market conditions low unemployment levels Strong position in terms of price competitiveness Stable propensity to consume by private households Positive current account balance Area (sq. km 000) 84 2,758 Population (million) GDP per capita 2014 (EUR) 38,540 29,800 Unit Labor Costs ( ) (average yearly change) 1.46% 1.68% (in %) f 2016 f f 2016 f Real GDP growth Inflation (HICP) Unemployment Export growth Current Account Balance Budget Surplus/Deficit Debt to GDP Financial Stability Report, Austrian National Bank Source: Austrian Institute of Economic Research, European Commission, Eurostat, Federal Ministry of Finance, Statistics Austria, OECD 11

12 A Strong Economy at the Heart of Europe Composition of Austrian GDP (in EUR bn) Geographic Distribution of Austrian Exports Consumption % Investments 75 23% Net exports Exports Imports % 53% 49% Total GDP Europe 79.8% (Eurozone 51.3%) Africa 1.3% Americas 8.6% (USA 6.1%) Asia 9.5% (China 2.6%) Australia 0.7% Source: Statistics Austria Germany 29.7% Italy 6.4% Switzerland 5.2% France 4.9% 12

13 Austrian Government Debt Performance Austria s strong government bond performance underlines its position as a core European sovereign yr Benchmark Government Bond Spreads vs Bunds (in bps) Austria Belgium France Netherlands Finland yr CDS Spreads (in bps) Austria Belgium France Netherlands Germany Finland Source: Bloomberg 13

14 OKB in the Capital Markets AUSTRIAʼS EXPORT CREDIT AGENCY

15 Funding Strategy and Program Long-term Annual Funding Requirement EUR 3-4 bn 1 2 benchmark issues USD, EUR (no re-openings) Other strategic markets GBP, AUD, CHF, JPY Tailor-made private placements Plain-vanilla MTNs Global investor diversification Responsive to investor enquiries Focus on maturities up to 5 years 15

16 Portfolio Management and Asset Liability Management Prudent Risk Management State-of-the-Art ALM and Risk Management Liquidity management Diversification of funding sources Short-term CP-programs High percentage of long-term debt Conservative investment policy Derivatives Used for hedging purposes only Highly rated counterparties Standard ISDA Agreements Collateral management EMIR compliance 16

17 OKB and Comparable European Sovereign Related Issuers OKB (Austria) KfW (Germany) Rentenbank (Germany) KBN (Norway) CADES (France) BNG (Netherlands) Ratings Aaa/AA+ Aaa/AAA/AAA Aaa/AAA/AAA Aaa/AAA Aa1/-/AA Aaa/AA+/AA+ Ownership Wholly owned by Austrian Banks 80% German Federal Republic, 20% Federal States - 100% ownership by the government of Norway 100% French State 50% State of Netherlands, 50% Dutch local government Guarantee Explicit* Explicit Explicit Implicit Implicit - (BIS) Risk Weighting 0% 0% 0% 20% 0% 20% Purpose Primary function is provision of export finance; Agency function for administration of export guarantees on behalf of Republic of Austria German development bank; involved in supporting a range of public policies incl. lending to SMEs, housing, infrastructure and assistance to developing markets Financing the agricultural sector, food industry and rural economies Sole role is to lend to the local and regional government sector Refinance the social security deficit Financing the Dutch Public Sector, Exclusive paying agent for the Dutch municipalities Global Programme (144A) (144A) (144A) 2015 Expected Funding 4bn 55-60bn 10bn $17-18bn 16bn 15bn Total Debt Outstanding** 22bn 374bn 70bn $51bn 128bn 92bn * Explicit guarantee bond issues carry explicit guarantee of the sovereign in case of issuer s default, investors have direct claim for payment against the guarantor ** Bloomberg Source: Goldman Sachs (as of June 2015) 17

18 OKB and Supranational Issuers OKB Worldbank IFC IADB NIB ADB EIB Ratings Aaa/AA+ Aaa/AAA Aaa/AAA Aaa/AAA Aaa/AAA Aaa/AAA Aaa/AAA BIS Risk Weighting 0% 0% 0% 0% 0% 0% 0% 2015 Funding in USD bn Total Issues outstanding in USD bn Total Debt in USD Global format outstanding in USD bn* Number of USD Global issues outstanding* Average size of USD Global issues outstanding in USD bn Frequency of issuance per year * Excludes structured debt Source: Bloomberg, Dealogic, JP Morgan (as of June 24, 2015) 18

19 Issuance Programs Issuance by Source (EUR 20 bn as of 9/2015) Issuance by Currency CHF 19.2% ECP 16.9% CHF 19.2% Kangaroo Issues 2.1% USCP 1.6% Deposit Market 2.2% Other 3.2% MTNs/Euroshelf 9.4% EUR 12.8% EUR/Euroshelf 7.4% Other 5.6% USD 59.3% Global Issues 38.0% GBP 3.1% 19

20 Volume (EUR bn) Redemption Profile 5,5 5 4,5 4 3,5 3 Stable funding outlook for the next years EUR USD Other 2,5 2 1,5 1 0,5 0 Final Maturity:

21 Volume (USD bn) ASW (bp) USD Global Issues Total Issuance - USD bn, of which USD bn outstanding 1,8 1,6 1,4 1,2 30,0 28,0 26,0 24,0 22,0 20,0 18,0 1,0 0,8 0,6 0,4 0,2 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 0,0 Feb 2016 Jun 2016 Dec 2016 Apr 2017 May 2017 May 2018 Mar 2019 Feb 2020 Oct 2020 Oct ,0 21

22 Mid vs. Swap USD 1.50 bn 0.75% Global due May OKB May-17 KFW Mar-17 EIB Apr-17 ADB Jul-17 BNG Feb-17 22

23 Spread vs MS (bps) USD 1.00 bn 1.375% Global due February OKB 1.375% 02/10/20 KfW 1.500% 04/20/20 KBN 1.625% 01/15/20 CADES 1.875% 07/28/20 EUROFIMA 1.750% 05/29/20 EIB 1.625% 12/15/

24 USD Globals distribution by investor type 1.0bn 1.375% bn 2.0% bn 1.125% bn 1.125% bn 0.75% Central Banks/Official Institutions 75% 76% 81% 62% 71% Asset Managers 11% - 6% 10% 18% Pensions & Insurance - 6% - - 2% Banks 9% 3% 5% 22% 9% Funds - 15% Corporates & Other 5% - 8% 6% bn 1.625% bn 2.375% bn 1.375% bn 0.75% bn 1.50% Central Banks/Official Institutions 65% 26% 58% 62% 48% Asset Managers 12% - 6% - - Pensions & Insurance % 4% Banks 22% 54% 32% 8% 28% Funds - 20% - 25% 20% Corporates & Other 1% - 4%

25 USD Globals distribution by region 1.0bn 1.375% bn 2.0% bn 1.125% bn 1.125% bn 0.75% Americas 21% 35% 26% 24% 33% Asia 25% 43% 12% 29% 38% Middle East & Africa 37% 14% 40% 15% 4% Europe 17% 8% 21% 32% 25% Other - - 1% bn 1.625% bn 2.375% bn 1.375% bn 0.75% bn 1.50% Americas 11% 46% 23% 50% 39% Asia 45% 16% 41% 22% 24% Middle East & Africa 3% - - 9% 4% Europe 41% 38% 36% 19% 33% Other

26 EUR Benchmarks Total Issuance - EUR 9.0 bn, of which EUR 1.5 bn outstanding % EUR 1.50 bn due Sep 2016 ASW bp 3.750% EUR 1.00 bn due Nov % EUR 2.00 bn due Feb % EUR 1.50 bn due Nov % EUR 1.50 bn due Dec % EUR 1.50 bn due Apr

27 EUR Benchmarks Distribution by investor type 1.5bn 3.875% bn 4.125% bn 4.125% bn 3.625% bn 3.5% Central Banks/Official Institutions 31% 35% 30% 28% 10% Asset Managers 3% 32% 4% - 12% Insurance 5% 8% 2% 8% 20% Banks 16% 18% 3% 48% 58% Funds 45% 7% 61% 16% - Distribution by region 1.5bn 3.875% bn 4.125% bn 4.125% bn 3.625% bn 3. 5% Americas 6% 10% 6% 5% 1% Asia 20% 21% 18% 17% 4% Middle East & Africa 1% - - 6% 5% Europe 73% 61% 76% 72% 90% Other - 8%

28 GBP Issues Total Issuance - GBP 1.85 bn, of which GBP 500 mn outstanding % GBP 150 mn due Dec % GBP 250 mn due Jun % GBP 200 mn due Dec % GBP 150 mn due Dec % GBP 250 mn due Dec % GBP 300 mn due Dec FRN GBP 200 mn due May % GBP 250 mn due Dec % GBP 100 mn due Dec 2018 (Tap) 28

29 GBP 250 mn 2.00% due Dec 2018 reentry into the STG market Geographic Distribution Investor Type Distribution Others 5% UK 30% Switzerland 27% Banks 25% Central Banks/ Official Institutions 44% Asia 10% Americas 1% Ireland 10% Retail 8% Rest Europe 22% Asset Managers 18% 29

30 Volume (CHF million) OKB and its activities in the CHF market Market Approach CHF bonds issued CHF 30.8 bn 215 bonds issued CHF 27.3 bn 136 public bonds CHF 3.5 bn 79 private placements Issuance activity in % CHF 225 mn due Jul % CHF 100 mn due Jul 2020 (Tap) Issuance activity in % CHF 175 mn due Jul 2020 (Tap) Redemption Profile CHF bonds in the amount of CHF 6.0 bn outstanding 30

31 AUD 300 mn 3.20% due August 2025 incl. taps of 2x AUD 75 mn and 1x AUD 25 mn Geographic Distribution Investor Type Distribution Insurers 44% Australia 46% Japan 54% Asset Managers 34% Banks 22% 31

32 ECP Program EUR 10 bn Geographic Distribution Investor Type Distribution Established: 1985 Guarantor: Dealers: Republic of Austria Barclays Bank BoAML Credit Suisse Citibank Goldman Sachs UBS Americas 2% Europe 18% Asia 14% Corporates 4% Banks 2% Program size: EUR 10 bn Maturity: days Outstanding: EUR 3.0 bn (USD 2.7 bn) as of October 26, 2015 Middle East 66% Central Banks/Official Institutions 94% 32

33 USCP Program USD 5 bn Program Description Established 1986 Guarantor Dealers Arranger Program Size Maturity Issue and Paying Agent Governing Law Republic of Austria Barclays Capital Citigroup Global Markets Goldman Sachs J.P.Morgan Securities Goldman Sachs USD 5 bn maximum 270 days Citibank N.A., New York New York Law Outstanding USD 438 mn as of October 26, 2015 Turnover 2014 USD 7.9 bn Average maturity days 33

34 Appendix OKB Projects Extension of San Fernando hospital Vietnam: Hydroelectric Power Plant Indonesia: Krakatau Steel Oesterreichische Entwicklungsbank Global Market Share of Selected Austrian Companies Austria and CESEE CESEE Economic Overview CESEE Key Economic Indicators OeKB CEE Business Climate Index Contacts 34

35 Extension of San Fernando hospital Trinidad & Tobago San Fernando second largest city Hospital enlargement by EUR 85 mn in total Additional 216 beds and university clinic Phases one and two (EUR 38 mn) locally financed (MoF) Phase three (1): EUR 34 mn commercial loan, tenor 10 years, covered by OeKB with some reinsurance Phase three (2): EUR 13 mn commercial loan Combination of local, foreign commercial and standard ECA covered loan 35

36 Vietnam: Hydroelectric Power Plant Thuong Kon Tum HPP (central Vietnam) 220 MW capacity, 78 m damn, 20 km tunnel, 2 Pelton turbines Project cost EUR 280 mn 30% equity, 70% domestic and foreign loans OeKB: EUR 32 mn financing of 2 Pelton turbines Commercial terms, tenor 10 years Guarantee by Bank for Investment and Development of Vietnam Substantial components from Indian subsidiary Partial reinsurance from private reinsurance market (Zurich) 36

37 Indonesia: Krakatau Steel Largest Indonesian steel producer Modernisation of existing plant in Cilegon Banten province (near Jakarta). Capacity 2 mn to/y Refurbishment of continuous casters, electric arc furnaces, dedusting and water treatment EUR 52 mn Tenor 8 years, reinsurance for German deliveries Balance sheet based financing Parallel modernisation program with German based financing 37

38 Oesterreichische Entwicklungsbank (OeEB) Development Bank of Austria Facts and Mission Statement OeEB aims at promoting sustainable private sector development in developing and emerging countries through financing and investing in profitable private sector projects Mandated by the Austrian Government as the official Development Bank of Austria Each project has to fulfil or at least contribute to development policy criteria Set up in March % subsidiary of OKB Key figures Committed volumes EUR 807 mn EUR 658 mn Total Assets EUR 605 mn EUR 437 mn Operating profit EUR 5.2 mn EUR 2.7 mn Profit EUR 4.3 mn EUR 2.0 mn Staff Standard & Poor s AA+ AA+ 38

39 Global Market Share of Selected Austrian Companies Company Product Market Share Red Bull energy drinks 43% Swarovski full lead crystal 70% Lenzing special textile fibers 90% Schoeller-Bleckmann oilfield industry, directional drilling technology 60% Doppelmayr cable cars 60% KTM offroad competition bikes 30% Agrana fruit juice concentrates and fruit preparations 35% Voestalpine tool steel 35% Palfinger cranes >30% Frequentis voice communication for civil and defense air traffic control 30% Andritz Hydro hydropower plants 22% Rosenbauer fire fighting vehicles 19% AT&S AG mobile devices, automobile sector 14% Wienerberger bricks and clay blocks 1 (Rank) Source: OKB Research Services 39

40 Austria and CESEE EU-15 Banks Exposure EUR bn, of which Austrian Banks Exposure EUR bn Italy 17% Austria 20% EU Countries: 85% Slovenia 3.0% Croatia 10.2% Poland 9.0% Bulgaria 1.9% Czech Republic 23.9% Baltics 0.2% Slovakia 14.2% Hungary 8.4% Romania 14.0% France 16% Rest of EU-15 16% Non-EU Countries: 15% Serbia 1.9% Turkey 0.5% Ukraine 1.5% Albania 0.9% Belarus 0.9% Bosnia and Herzegovina 1.8% Germany 11% Belgium 6% Netherlands 8% Greece 6% Source: Austrian National Bank, June 2015 (based on BIS data Q4 2014) Montenegro 0.2% Russia 6.5% Macedonia 0.2% Rest 0.6% 40

41 CESEE Economic Overview CEE: GDP per capita (in % of European Union average)* CE/SEE: New lending cycle may start; balance sheet clean-up results in improved NPLs, but affects profitability EE: Western banks may start to rethink their market presence, returning to boutique-style business models High-growth markets: Poland, the Czech Republic, Slovakia, Hungary and Romania *at PPP; f: IMF forecasts Source: IMF WEO, RBI/Raiffeisen RESEARCH 41

42 CESEE Key Economic Indicators Source: national source, Eurostat, RBI/Raiffeisen RESEARCH 42

43 OeKB CEE Business Climate Index Direct Investors turn more optimistic about current situation and outlook Based on quarterly investor surveys Sample made up of approx. 400 companies with their CEE headquarters in Austria 1,500 companies in CEE covered 21 countries are analyzed Gives more than 1,000 indicators for economic trends relevant to CEE investors Provides information on current and future business and investment climate Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q Business climate Average: Business climate ( ) Economic outlook 43

44 Contacts Waltraut Burghardt - Head of Department Anish Gupta - Deputy Head of Department Achim Keuchel Senior Manager Maximilian Plattner - Director Funding Elisabeth Schneider - Director Funding Monika Seitelberger - Director Funding [email protected] Investor Relations Disclaimer: This presentation is not an offer to sell securities and should not be construed as a solicitation of an offer to buy securities. 44