ANNUAL REPORT 2006 Graz, April 2007

ANNUAL REPORT 2006 Graz, April 2007

2 CONTENTS ANNUAL REPORT 2006 Foreword 3 Management, bodies and employees of Raiffeisen- Landesbank Steiermark 5 Review of the year 2006 12 Raiffeisen-Landesbank in its 80 th year of business 17 Raiffeisen Banking Group Styria 24 Balance sheet 30 Profit and loss account 33 Consolidated balance sheet 36 Report by the Supervisory Board 41

3 Markus Mair Banks live on their customers trust. A fact that has once again been proven by the developments in the Austrian banking world in 2006. The Raiffeisen banking institutions in Styria have lived by this motto for 113 years and not only since the onset of the turbulent times in banking. No customer of ours has ever had to fear for his money. And they will not have to do so in future either. We did not deviate from our way in 2006. The Raiffeisen Banking Group in Styria, as well as Raiffeisen-Landesbank Steiermark continued to grow and proved their roles as large and safe vessels that stay on course and arrive safely at their destination even when the sea gets rough. Success is achieved in teams. My gratitude goes out to our customers who honoured us with their loyalty again in 2006 and made a good result possible. I would also like to thank our owners, the Styrian Raiffeisen banks; there is hardly another Austrian province where Raiffeisen stands as strongly united as in Styria. This Styrian approach is one of the secrets of our success. And I would also like to thank our members of staff. It is them who turn the Raiffeisen concept into reality, day by day. Our success would not be possible without their commitment. Data, facts and figures are one thing. Life is another. Record balances are pleasing, and yet sometimes they arouse resentment. Especially when it is unclear what the profits are used for. While other companies are dominated by the mere strive for profit optimisation, we at Raiffeisen have adopted a different approach. As providers of financial services we are, of course, bound to economic success. Our pursuit of economic success is, however, complemented by a high degree of social responsibility. A considerable part of our profit is spent in our country through sponsorships and advertising thereby making many things possible or at least easier. Our commitment ranges from sports associations, cultural initiatives and festivals to local fire brigades, kindergartens and more. In addition, we organise numerous information events for businesses and the people living in this country. We do that because we want to ensure their competitive edge through information and make them fit in business. Banks, in particular, will only be successful if the environment they work in is successful, too. Markus Mair Chief Executive Officer

A rt and culture is the central theme running through our Annual Report 2006. Raiffeisen-Landesbank Steiermark, and with it the entire Raiffeisen Banking Group in Styria, have for many years been sponsors, supporters as well as patrons of art and culture. The list of activities in this field is long and ranges from the styriarte festival, opera productions, the Kinder ins Theater initiative that aims to bring more children to theatre productions, to exhibitions at the Raiffeisen gallery at Tummelplatz in Graz, and much more. Art is a regular part of the events we organise. Art and culture rank high on our list of priorities.

RAIFFEISEN-LANDESBANK STEIERMARK Management, bodies and employees

6 MANAGEMENT General Director Markus MAIR Chairman of the Managing Board COORDINATION AND DEPARTMENTS RAIFFEISEN BANK RELATIONS Deputy General Director Friedrich LENGGER Vice-Chairman of the Managing Board RISK MANAGEMENT, INVESTMENTS AND OPERATIONS

7 Member of the Managing Board Peter HABERER Member of the Managing Board Johann JAUK Member of the Managing Board Martin JEINDL PRIVATE CUSTOMERS COMMERCIAL CUSTOMERS ACCOUNTS, DEVELOPMENT AND ORGANISATION

8

9 BODIES SUPERVISORY BOARD BOARD OF TRUSTEES CHAIRMAN Wilfried THOMA 1 ST DEPUTY-CHAIRMAN Ludwig STALLER 2 ND DEPUTY-CHAIRMAN Wilhelm WALCH CHAIRMAN Wilfried VEJDA 1 ST DEPUTY-CHAIRMAN Johann RAUSCHER 2 ND DEPUTY-CHAIRMAN Albin ČATER MEMBERS Othmar EDERER (Member of the Supervisory Board until 19 May 2006) Johann GRATZER Friedrich GRUBER Hans JAUK Herbert KOLB Alfred LACKNER Alois PABST Herbert PRETTERHOFER Josef SCHEROUNIGG Erik VENNINGDORF (Member of the Supervisory Board since 19 May 2006) REPRESENTATIVES OF THE EMPLOYEES COUNCIL Erika LUBE Gerhard MANN Herbert STRALLHOFER Josef HOFER Walter GRUBER Harald KORSCHELT MEMBERS Anton FISCHER-FELGITSCH Edmund HÖDL Hans HÖFLER Franz KOCH Johann POSCH Franz POTZINGER Franz ROTHSCHEDL Peter SALZINGER Franz SCHRANK Engelbert SPRINGER Karl TROHA Franz TRUMMER Hermine WENK STATE COMMISSIONERS Gabriele HERBECK Gabriele HERMANN

10 OUR EMPLOYEES THE SUCCESSFUL ORCHESTRA Employees are the key to success for financial service providers. On 31 December 2006, Raiffeisen- Landesbank Steiermark AG employed 808 people. The slight growth in HR continued (2005: 792 employees) and is mainly caused by the close cooperation with our subsidiaries that resulted in employees changing from there to Raiffeisen- Landesbank. The Austrian, as well as the international, financial markets are subject to a process of change. Framework conditions are changing and they are a challenge for Human Resource development, for recruitment and HR administration. ABLASSER Birgit ADAM Gottfried ADLER Gerald ADLER Rosemarie AGLASSINGER Thomas AIGNER-LENDL Heidemarie ALBRECHER Daniela ALBRECHER Wolfgang ALLMER Karl ALTENSTRASSER Manfred AMERSTORFER Sabine ANDRITZ Dorothea ARMBRUSTER Claudia ARNDT Hansjörg AUER Karin AUER Peter AUGUSTIN Ingrid AUNER Gebhard BACHER Sabine BAIER Anton BARMUELLER Karoline BAUDENDISTEL Helmut BAUER Heidemarie BAUERNHOFER Christian BAUERNHOFER Johann BAUMANN Alois BAUMGARTNER Anton BAUMGARTNER Ewald BAUMGARTNER Veronika BAUMHAKL Gerhard BECKER Friederike BERGHOLD Elisabeth BERGMANN Sigrid BILEK Sigrid BINDER Claus BINDER Karl Thomas BIRKER Franziska BISCHOF Reinhold BISCHOF Siegfried BLAINDORFER Eveline BLODER Andrea BOEHM Daniela BORSTNAR Hans Jörg BRANDL Heinz BRANDSTAETTER Christa BRANDSTAETTER Gerhard BREITHUBER Irmgard BRETTERKLIEBER Martin BRUNADER Franz BRUNNER Alexander BRUNNER Christian BRUNNER Ingrid BUCHBERGER Anton BUCHEGGER Gert BURGSTEINER Johannes BURKHART Sylvia CAPELLARI Barbara CSUK Elisabeth CSUK Robert CZENE Franz CZERNY Wolfgang DAMPFHOFER Birgit DAMPFHOFER Johann DANI Tamara DERLER Elisabeth DERLER Johannes DEUTSCH Karin DEUTSCH Elisabeth DEUTSCH Marion DIEBALD Josef DOERFFEL Karin DOKTER Thomas DOLINAR Martin DOLLENZ Olivia DOPPLER Rosemarie DORNER Hannes DORNER Helga DRAGSCHITS-HALAJ Katharina DREISIEBNER Eva Maria ECKHART Karl EDELSBRUNNER Reinhold EDLER Martin EDLER Stefanie EFFERL Michael EGGER Birgit EHRENREICH Guenther EIBEL Anton EIBISBERGER Markus EIBOECK Steffen EISENBERGER Barbara EISENHUT Markus EISNER Gerald EISNER Gerhard EISNER Ingrid EISSNER Irmgard ELSNEG Anna ENDERLE Monika ENGELBOGEN Josef ENGLEREva ERDELY Ladislaus ERKINGER Reinhard ERNST Claudia ERTL Elisabeth ESTERL Bettina FALESCHINI Tina FANKHAUSER Wolfgang FEICHTER Gerhard We thank our employees most sincerely for their great enthusiasm and high level of personal commitment and for making the continued success of Raiffeisen-Landesbank in the interests of its customers and owners possible. FELBER Petra Johanna FELBER Wolfgang FELDHOFER Josef FELGITSCHER Gerlinde FELGITSCHER Roland FERSTL Adolf FERSTL Aloisia FINK Doris FLECHL Christian FLECHL Cornelia FLECK Gerhard FLEISCHHACKER Christine FLEISCHHACKER Guenther FORCHE Thomas FREIBERGER Wolfgang FREIDL Stefan FREISSMUTH Florian FRIEDRICH Alexander FRITZ Christina FROEHLICH Elisabeth FUCHS Franz FUCHS Sabine FUERST Christine FUNK Cornelia FURTLEHNER Isabella GAEBLER Astrid GAISCH Franz GALLI Martin GAMPERL Marianne GANGL Karin GANGOLY Daniela GASSNER Arnold A. GASSNER Erna GAUSTER Karin GEIEREGGER Guenther GFRERRER Eva GIMPEL Michaela GLASER Hilde GLAUNINGER Helmut GLEHR Karl GLEICHWEIT Tanja GLETTLER Andreas GLETTLER 2 Andreas GNEIST Mathilde GOBLIRSCH Hans GOBOLD-SCHOEPFER Gabriele GOETSCHL Karl GOETSCHMAIER Eva GOETZL Marlies GOETZL Walter GOGG Roswitha GOLAUTSCHNIG Patricia GOLLNER Bernhard GOSCH Josef GRABENHOFER Edith GRAF Werner GRAFONER Mathilde GRATZE Joachim GRATZER Johannes GREIMEL Franz GREINIX Martin GRIMM Maria GRINSCHGL Verena GROSS Ewald GROSSMANN Karl GROSZ Richard GROSZSCHEDL Birgit GROSZSCHEDL Franz GRUBER Andrea GRUBER Anita GRUBER Walter GSCHWEITL Franz GSPURNING Ilse GUNGL Helmut GUNHOLD Ariane GUTJAHR Hermine GUTMANN Theresia GUTTMANN Klaus HAAS Christoph HABERER Peter HABERLE Cornelia HACKL Herbert HADOLT Andrea HAIDACHER Hermann HAIDACHER Sieglinde HAIDACHER Walter HALLEUX Jörg HAMM Roswitha HAMMER Franz HANFSTINGL Elisabeth HARRANT Gerlinde HARRER Andreas HARRER Petra HARTINGER Gerhard HASEWEND Doris HASIBA Christina HATZ Walter HATZL Annemarie HAUPTMANN Markus HAUPTMANN Michaela HAUSLEITNER Florian HAUSMANN Tanja HAZELMAYER Andrea HEHER Vinzenz HELD Heiko HERMANN Stefan HERZER Wilhelm HIERZER Ingrid HINTEREGGER Eva Maria HINTEREGGER Katrin HIPPACHER Elisabeth HIPPACHER Ernst HIRSCHMANN Josef HIRZER Mia-Ileana HOEFER Walter HOEFLECHNER Barbara HOEFLER Herbert HOEGL Siegfried HOFER Brigitte HOFER Josef HOLD Gerfried HOLL Monika HOLZAPFEL Johann HORBATH Margit HORNER Marianne HUBER Brigitta HUBER Hermann HUBER Johann HUBMANN Wilhelm HUDA Meike HUDL Daniel HYDEN Herbert IMENSEK Thomas INTHALER Sandra JAINDL Gabriele JAMBREC Wolfgang JAMMERNEGG Wolfgang JANISCH Martina JANSKY Manfred JANTSCHER Albine JAUK Alexander JAUK Johann JAUK Margit JAUK Sonja JAUTZ Margit JEINDL Martin JENSEN Kjeld Seneca JONACHER Barbara KAGER Daniela KAHLBACHER Monika KAHR Andreas KAHR Renate KAINER Maria KAISERFELD Hildegard KALCHER Gerhard KALCHER Lisbeth KALCHER Peter KALSBERGER Uwe Thorsten KAMPER Andreas KAMPER Rosmarie KAMRAT Markus KAPFENSTEINER Andrea KARABELAS Renate KARNER Huberta KARNETSCHNIGG Rudolf KASCHNIGG Karin KATSCHNIG Karin KAUDEL Helmut KAUFMANN Marion KAUFMANN I Gerhard KAUFMANN II Gerhard KERN Ewald KERN Michael KERN Renate KESSLER Beate KETTL Dieter KIEFER Michael KIEFER Walter KIELHAUSER Sandra KIENREICH Armin KINDLHOFER Elisabeth KIRCHENGAST Christina KITTINGER Doris KLAMPFER Manfred KLASNIC Marianne KLEINDL Günter KLEINDL-POSCH Renate KLETZMAYR Maria KLINGSBIGEL Brigitte KLOECKL Dagmar KLOSA Uwe KNAPP Maria KNAUHS Maria KNECHTL Evamaria KNEISSL Elke KOCH Evelyn KOCH Gernot KOECK Johann KOESTL Johann KOETSCHLER Sigibert KOETZ Ernest KOFLER Daniela KOGLER Brigitte KOGLER Doris KOGLER Enrico KOGLER Gerald KOGLER Werner KOHL Helmut KOHL Johann KOHL Maria KOHL Sabine KOINEGG Sabine KOLB Karin-Gabriela KOLB Maria KOLLEGGER Renate KOLLER Michaela KOLLER Petra KOLLER Philipp KOMPASSO Peter KONRAD Alfred KONRAD Sieglinde KORMANN Thomas KORNBERGER Melanie KORP Ernestine KORSCHELT Harald KOTZBECK Klaus KOWALD Elfriede KRACH Gisela KRAINZ Eva KRANER Anton KRANKENEDL Manfred KRAXNER Anna KRAXNER Astrid KRAXNER Isabella KRAXNER Thomas KRENN Franz KRESBACH Walter KRIEGL Josef KRISPEL Irene KRISPEL Reinhard KROBATH Nicole KROIS Marlies KROIS Walter KROPIK Harald KUHELNIK Franz KUMPITSCH Johannes KUNDEGRABER Martin KUNTNER Robert KUPFER Christian KUPSCH Heinz-Juergen KURZ Brigitte LACKNER Alfred LACKNER Josef LADLER Stefan LAFER Susanne LAGNOL Franz LALLITSCH Nikolaus LAMBAUER Dietmar LAMMER Johannes LANG Rosa LANG Thomas LANGREITER Detlev LANZ Josef LECHNER Gabriele LECHNER Johann LECHPAMMER Michaela LEDERER Bettina LEINDL Christine LEINDL Helmut LEINER Andrea LEITGEB Eleonore LEITNER Johanna LEITNER Rene LELLECK Alfred LENGER Irmgard LENGGER Friedrich LENHARD Elfriede LENHARDT Josef LERCHBACHER Hans-Juergen LESKY Sabrina LESNIK Katrin LEXNER Uwe LIND Elisabeth LIND Susanne LINDNER Gerhard LIPP Anita LOH Johann LOIPNER Wolfgang LOITZL Barbara LORENZER Michael LUBE Erika LUBER Heidemarie LUBI Christoph LUEFTENEGGER Claudia LUTTENBERGER Gerald MACHER Karl MADNER Helene MAIERHOFER Claudia MAIR Markus MAITZ Gertrude MAITZ Roswitha MAJCAN Sabine Martina MALY Sabine MANDL Brigitte MANN Gerhard

11 We are called upon to increase the productive efficiency of the company and to utilise synergies resulting from the cooperation with our subsidiaries. In 2006, training, ongoing training and skill enhancement played a leading role in the field of HR development. 59 employees completed the basic training course and 18 employees the advanced technical training. In the field of recruiting, we opted for both internal advertising of vacancies and the external Raiffeisen Internet Job Exchange, and were able to find the perfect people for the jobs. As of a year ago, our employees receive their salary statements electronically via ELBA-internet. In 2006, we also implemented a new, modern wage system in cooperation with the Employees Council. The new system offers more attractive options for young and newly recruited employees in particular. MAROLD Kurt MARX Inge MARX Peter MATL Harald MATLSCHWEIGER Margret MATSCHINEGG Anneliese MATZHOLD Marianne MATZHOLD Peter MAURER Andreas MAURER Gerlinde MAURER Ingrid MAURER Walter MAUTHNER Gerd MAXONES Doris MAYER Gerhard MAYER Horst MAYER Ursula MAYERDORFER Ute MAYR Paulus MEIREGGER Franz MEISENBICHLER Iris MEISTER Helmut MEIXNER Hannes Mick MENAPACE Maria MICHITSCH Andreas MINAUF Manfred MOERTH Waltraud MOESTL Josef MOISES Roswitha MORARU Marin MORARU Veronica MORO Verena MOSDORFER Heide MOSER Doris MOSER Marianne MOSER Martin Urban MOTTER Herbert MUEHLBAUER Alexandra MUELLNER Gerald MUENZER Christian MURG Thomas MURTINGER Bernd NAGER Maria NARATH Beatrix NEBEL Heinz NEMECEK Daniela NEUBAUER Sandra NEUHOLD Kurt NEURATHNER Eva NIESNER Katharina NIGITZ Christa NINAUS Roswitha NOVAK Michaela OBERER Gabriele OBERHUBER Maria OBERTHALER Roswitha OFNER Petra ORNIG Josef Gerhard ORTNER Wilhelm OSLAJ Andreas PAAR Gabriele PACHER Wolfgang PACK Matthias PAIERL Annelies PAMSL Marianne PANZER Gabriele PATTERER Judith PAULITSCH Josef PAUSCH Johann PAYRICH Eva PEIER Veronika PEINSITH Thomas PEINSITT Dorothea PEISSL Jürgen PELZMANN Alois PENDL Johann PENDL Karl PERL Meike PERSCHLER Sabrina PESSENHOFER Martina PFANNER Iris PFEIFER Klaus PFNISS Gregor PICCOLROVAZZI HLATKY M. G. PICHLER Charlet PICHLER Christian PILGER Eva PINEGGER Johannes PINTHER Thomas PIRER Ingrid PIRSTINGER Herta PLANINSCHITSCH Monika PLANKO Maria PLASCHKA Stefan PLATZER Verena PLEDL Elisabeth PLETERSEK Thomas PLEWA Gerald PLODER Thomas POBASCHNIG Bettina POCK Rudolf PODMENIK Christine PODMENIK Gerhard POELLINGER Richard POELTL Elisabeth POETTLER Robert POKRIVKA Andreas POLLHAMMER Christine PONTASCH-HOERZER Michael POPIC Irena POSCH Siegfried POTZINGER Helmut PRANGL Margareta PRANTER Evelyn PRATH Ulrike PRATSCH Harald PREDOTA Irmgard PREININGER Ulrike PREITLER Franz PREM Johannes PRESSLER Werner Martin PRETTENHOFER Maria PUCHAS Klaus PUCHER Bettina PURRER Ingrid PUSTER Wilhelmine QUAISER Hannes RABEL Christina RABL Sonja RADASCHITZ Martin RAHBERGER Gerhard RAHM Michael RAINBACHER Christine RAINER Randolf RANNAK Konrad RAPPOLD Franz RATTINGER Christa RAUSCH Regina RAUSCHENBERG Petra RECHL Klaudia RECHLING Waltraud RECHLING-GREIMEL Andrea REGULA Rolf Arno REICHMANN Eva-Maria REINISCH Karl REINISCH Maria REINTHALER Juergen REISCHER Gerhard REISENHOFER Herwig REISSMUELLER Doris REITER Franz REMLER Christa RESCH Barbara REUMUELLER Heinz RICHTER-KERNREICH Eva RIECK-DILSKY Sabina RIEDRICH Franz RIEGER Elisabeth RIEGLER Hermann RIEGLER Regina RINNERGSCHWENTNER Ljilja RITTER Theresia ROBERTSON Evelyn ROGI Franz ROHLFING Günther ROHRER Peter ROM Edeltraud ROSENBERGER Franz ROUBAL Martin RUCKER Hans Peter RUDERER- KNOLLMAYR Petra SACHS Johann SACKL Harald SAFRAN Eva-Maria SAGMEISTER Ulrike SAILER Sylvia SAMEC-GATTER Ariane SAMMER Anton SATTLER Peter SAUER Johannes SAURER Gerald SCHAEFMANN Johannes SCHAFFER Kunibert SCHAFFER Susanne SCHAFLER Daniel SCHALLER Josef SCHANES-WALENTA Gabriele SCHANTL Daniela SCHEER Petra SCHEER Reinhold SCHEICHER Marianne SCHEIN Alexander SCHENK Martina SCHERF Karin SCHERZER Erna SCHETT Renate SCHEUCHER Elisabeth SCHEUCHER Werner SCHEUERMANN Bernhard SCHIFFER Elisabeth SCHIMPL Doris SCHINTLER-TSCHRIETER Petra SCHISTER Harald SCHISTER Theresia SCHLAG Manuela SCHLAR Dietmar SCHLATZER Christian SCHLEGL Martina SCHLOEGL Herbert SCHLOEGL Margit SCHMER Ursula SCHMIDBAUER Johannes SCHMIED Hermann SCHMIED Ute SCHNABL Ferdinand W. SCHNEDLITZ Gerhard SCHNEEBACHER Karl SCHNEIDER Waltraud SCHNEIDER II Waltraud SCHOBER Robert SCHOLLER Johann Alois SCHOTTER Helmut SCHRAMMEL Josef SCHRANGL Markus SCHREIBMAYER Rosemarie SCHROETTNER Michael SCHROETTNER Peter SCHULZ Daniela SCHWABL Thomas SCHWARZ Gerfried SCHWARZ Guenter SCHWARZ Kerstin SCHWARZENEGGER Renate SCHWEINZER Erwin SCHWEINZGER Margit SCHWIMMER Sonja SCHWINDSACKL Ernest SEEBACHER Johann SEIDLER Monika SEINER Heidi SEUFZER Roderich SIDAK Gerald SILBERSCHNEIDER Heidrun SIMBUERGER Jürgen SIMMERSTATTER Markus SIMO Petra SINGER Anton SIVETZ Evelyn SIXT Wolfgang SKALE Tatjana SKEDELJ Anita SONNLEITNER Anton SORGER Ursula SPATH Rene SPITALER Harald SPITZER-GABRIEL Eva-Christine SPREITZHOFER Anna-Maria STADLER Franz STADLER Roswitha STANGL Monika STEGER Helga STEGER Peter STEGH Elisabeth STEINWIDDER Bernd STEIRER Evelyn STELZER Rudolf Our thanks go out to our Employees Council who organises all its activities on behalf of our employees with a view to the requirements for a positive development of the company as a whole. STENGG Wolfgang STOERI Silvia STOISER-NESTL Doris STRACHWITZ Siegmund STRALLHOFER Herbert STRANZ Cornelia STREIBL Peter STREICHER Christina STREIT Elisabeth STROBL Christoph STROBL Erich STROBL Markus STROHMEIER Sigrid STROHRIEGL Veronika STROMBERGER Brigitte SUDI Gerhard SUPPANSCHITZ Otto SUSCHNIGG Klaus SUTTNIGG-GRUBER Elisabeth TACKNER Anton TAEUBEL Gudrun TANFARA RAKAR Tamara TANTSCHER Robert TARMANN Elke TARTLER Bernhard TAX Brigitte TEMMEL Maria TENGG Franz TERSANSKI Susanne TEUSCHLER Liselotte THALER Edith THALLER Wolfgang THEISL Angela THEISSL Christian THIER Michael THIER Rosalinde THOMANN Herbert THOSOLD Dietmar THURMAIER Klaudius TIEFENGRUBER Walter TOTH Julius TRANTURA Thomas TRAPPL Jenny TRAUSSNIG Sandro TROESTER Siegfried TROHA Elisabeth TRUMMER Alois TRUMMER Bettina TRUMMER Christine TRUMMER Claudia TRUMMER Elisabeth TRUMMER Siegfried TSCHICK Harald TSCHIKOF Stefan UITZ Ingrid UMFER Priska UNGER Anton UNGER Gerhard UNTERWEGER Florian URAY Heinrich VALLANT Gerhard VATERL Manuela VEIT Bettina VEITSBERGER Christian VERONIG Bernd VOLLER Wilhelm WAGNER Bernhard WAGNER Gunther WAGNER Martina WAIDACHER Irmgard WALCH Anita WALCHER Werner WALLNER Daniela WALLNER Marja Liisa WALLNER Patrick WALTERSDORFER Karin WEBER Astrid WEBER Christine WEBER Johannes WEBER Martin WEBERN Wilfried WEIGL Alexander WEIGL Beate WEINGRABER Werner WEINGRILL Michael WEINHANDL Gerhard WEINHANDL-ROECK Maria WEINHOFER Werner WEISS Christof WEISS Elke WEISS Heribert WEISSENSTEINER Walter WESENER Bernhard WIEDEMSCHECK Elfriede WIENER Rudolf WIESER Edith WIESER Rosa-Maria WIESER Sabine WIESER Ulrike WIESNER Johann WILDBACHER Evelyn WINDISCH Josef WINKLER Gerhard WINTERLEITNER Bernd WINTERLEITNER Bernd WITEK Joerg WOHLESSER Johann WOLF Ingrid WUENSCHER Matthias WUNDER Ursula WUNDERL Renate WURZINGER Marlene Anna WURZINGER Norbert ZACH Bettina ZAUHAR Birgit ZAUNSCHIRM Ingrid ZECHNER Gabriele ZECHNER Jasmine ZEHETLEITNER Thomas ZEHETNER Martin ZERKOWITZ Alexander ZIERSCH Waltraud ZIMMERMANN Astrid ZISSER Roland ZNIVA Wolfgang ZOECH Martin ZOEHRER Anna ZOELZER Michael ZOERNER Peter ZOTTER Daniela ZUEGNER Ingrid The Managing Board

12 REVIEW OF THE YEAR 2006

13

14 REVIEW OF THE YEAR 2006

15

Raiffeisen-Landesbank in its 80 th year of business

18 DEPOSITS AND LOANS Deposits. In accordance with the function of Raiffeisen-Landesbank as the financial clearing centre of the Raiffeisen Banking Group, deposits are predominantly made up by inter-bank deposits of member banks. Inter-bank deposits rose by EUR 199 m to EUR 2.1 bn. Deposits by customers amounted to EUR 996 m and break down into EUR 519 m deposits on giro accounts and EUR 477 m on savings accounts. In 2006, debts evidenced by securities amounted to EUR 1.5 bn, which is an increase by 9.5 % compared to the previous year. At the end of the year 2006, other inter-bank deposits amounted to EUR 1,181 m. Overall deposits were nearly EUR 6 bn on 31 December 2006. Loans. By the end of the year 2006, loans granted by Raiffeisen-Landesbank Steiermark amounted to an aggregate of EUR 3.7 bn, of which loans to banking institutions in the amount of EUR 1,276 m. The financing volume covering all types of customer business was EUR 2.3 bn, with the lion s share being EUR 1.7 bn to commercial and corporate customers. Lending to private customers came to EUR 161 m. 5,311 439 5,972 477 519 As far as lease financing is concerned, Raiffeisen- Landesbank Steiermark was able to achieve EUR 304 m in financing. 479 1,552 1,417 1,032 1,181 SOURCE OF FUNDS in EUR million Saving deposits 1,944 2,143 Giro deposits Own issues Other inter-bank deposits 2005 2006 Raiffeisen banks

19 TRADE/COMMERCIAL CUSTOMERS THE WORLD STAGE Raiffeisen-Landesbank Steiermark aligns its strategic orientation in the trade and commercial customer business on industry, institutions and the public sector with their associated companies. The overall volume of the financing activities in the trade/commercial customer area was increased by approximately EUR 161 m (+ 6.5 %) to reach EUR 2.6 bn in 2006. RLB has thus once again succeeded in expanding its market position in the trade/commercial customer business and to establish Raiffeisen-Landesbank Steiermark as a partner for Styrian economy. Raiffeisen-Landesbank Steiermark was able to solidify its position as a partner for national and international syndicates. The overall volume in this business segment amounts to about EUR 367 m (+ EUR 77 m). In the framework of the Raiffeisen Business Talks, our bank organised the Due Diligence Day and an event entitled Acquisition and sale of companies what to consider, and we had Ukraine visiting Raiffeisen-Landesbank. A highlight of 2006 was the 1 st European conference held at Graz Airport in 2006 that focused on Croatia, Romania, Bulgaria, Serbia and Turkey. 3,576 147 3,715 161 1,558 1,684 167 319 203 304 LOANS in EUR million Private customers Commercial customers 1,385 1,276 Agricultural financing (agricultural cooperatives, etc.) Leasing Credit institutions 2005 87 2006 Others

20 OUR PRIVATE CUSTOMER BUSINESS PERFORMING FOR OUR AUDIENCE The private customer business of Raiffeisen- Landesbank Steiermark is carried on in twelve banks in Graz and Frohnleiten and in the centres for asset consulting, building and homes and the Raiffeisen UniCenter. In 2006, initial deposits rose by 7.1 % to EUR 116.3 m and saving deposits by 9.1 % to reach EUR 450.7 m; this means an increase of primary funds by 8.7 % to EUR 567.0 m. All in all, overall funds increased by 7.8 % in 2006 and reached EUR 951.9 m. Private financing increased, too, in 2006; it rose by 6 % to reach EUR 147.3 m. Aggregate financing, with building society financing included, amounted to as much as EUR 221.9 m. SHAREHOLDINGS STRATEGIC COMMITMENT During the 2006 business year, the inventory of our shareholdings increased by approximately EUR 72 m to EUR 699 m. This corresponds to an increase of 11.5 %. The main changes in shareholdings relate to capital increases of Raiffeisen-Zentralbank Österreich AG and the foreign banks in Croatia, Bosnia and Herzegovina and Slovenia. The most significant part of shareholdings of Raiffeisen-Landesbank Steiermark is in the one-stop finance business line and includes shareholdings within the group, above all those in Raiffeisen- Zentralbank Österreich AG and its subsidiary Raiffeisen International Holding AG. With the majority shareholding of 75 % in Landes-Hypothekenbank Steiermark AG, the Raiffeisen group of banks and Landes-Hypothekenbank Steiermark AG are together by far the largest banking group in southern Austria. In 2006, we established the Steirische Technologieund Wachstumsfonds Beteiligungen AG as a private equity fund together with the Province of Styria, other banks and insurance agencies. The fund was established with the aim to provide equity to Styrian companies when they need support for expansions, management buy-outs and management buy-ins, acquisitions and succession schemes. In addition, Raiffeisen-Landesbank Steiermark has holdings in Steirerfrucht Betriebsgesellschaft m.b.h. & Co KG and Obst Hofer Handels-GmbH, the most important fruit marketing companies in Austria.

21 RISK MANAGEMENT LOW RISK MORE FUN Our risk management has been restructured and combines all aspects dealing with risks associated with banks. In 2006, the balance sheets of 13,872 customers of 10,576 companies from the most varied lines of industry were analysed. In addition, numerous balance sheets were discussed and financial plans drawn up that served as a basis for investors decisions in the trade/commercial customer business. A total of 658 refinancing loans were granted with an aggregate volume of EUR 1.4 bn. The refinancing volume vis-à-vis Styrian Raiffeisen banks was EUR 1.2 bn on 31 December 2006. In the field of reporting, one focus was on the development of equity calculation according to Basel II. LIAISON TO RAIFFEISEN BANKS HARMONY IN TUNE One of the core tasks of Raiffeisen-Landesbank is the support of the Styrian Raiffeisen banks in the fields of marketing, distribution, organisation and operational management. This includes also the support in designing, developing and implementing marketing concepts, the development of new organisational concepts and the introduction of professional management tools. The focus in marketing was on investment and provisions in 2006. During the first six months of the year, the Raiffeisen depot check was supported with regard to distribution organisation and marketing. In the second half of the year, the focus was on the Raiffeisen pension system. A particular highlight in 2006 was once again the Raiffeisen Award, a competition among employees, carried out in four groups according to the size of the Raiffeisen bank. Our cooperation with the evolaris research platform was continued in 2006. One project was the cooperation in the pilot study Mobile marketing. The mobile phone as a means of marketing at the Zinzendorfgasse/UniCenter branch. Another focal point in 2006 was the provision of services to the Styrian Raiffeisen banks in operational company control, which included a comprehensive economic bank analysis, the preparation of mediumterm company plans, the assessment of locations and the introduction of professional calculation systems.

22 FOREIGN BUSINESS MULTI-CULTURAL Styria has enjoyed above-average growth rates in export over the last few years. We therefore focus strongly on foreign business. The dynamism triggered by the export economy entailed high growth rates, especially in the documentary business. The Asian markets are still the decisive markets for this line of business. The enormous growth potential of the national economies of China and India could soon make this region the second largest national economy in the world. Behind China and India, Central and Eastern Europe is the economic region with the second largest growth rates. OUR COMPUTATIONAL CENTRE SETTING THE RHYTHM IN IT Availability, high efficiency and high processing speed are the challenges in the field of information technology (IT), organisation and handling. Ongoing developments in the organisational and IT field are carried out in close cooperation with our partners in the Raiffeisen group. The Raiffeisen technology centre handles 4,200 bank work stations and all the self-service terminals for customers. More than one million transactions are managed every day. With a number of 12 m, the e-mail volume reached new record heights in 2006. Investments in the network and mainframes took account of new applications requiring increasingly high line and computer speeds. As far as office programmes are concerned, 2006 saw the comprehensive switch to the current Microsoft operating system. Demands on safety of self-service terminals made the change to new model versions necessary. 2006 was also the year of criminal attacks on electronic banking systems of all banks. Raiffeisen- Landesbank responded to this threat by introducing new procedures to safeguard electronic transfers and by offering targeted information to our customers. As far as payment transactions are concerned, preparations are dedicated to the common European project SEPA (Single European Payment Area). SEPA aims at standardising non-cash payments within the Euro countries as from 1 January 2008 in such a way that there will no longer be any difference between national and cross-border payments for bank customers. On the customer side, the trend towards cashless payments continued with growth rates in electronic banking and payments at ATM payment terminals or cash points reaching about 15 %. In 2006, 90.5 m domestic and foreign payment transactions were handled via Raiffeisen- Landesbank as a clearing centre; in the securities field handling securities orders from the customer to the stock exchange 725,000 orders were managed, which corresponds to a 30 % increase compared to last year.