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TRUSTWORTHY.

FOCUSED.

DIVERSIFIED.

COMPETENT.

DVB Bank Group –

Client Presentation

Frankfurt/Main, October 2017

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.

Client Presentation __ October 2017 __ Disclaimer

Contents

02/ DVB – Business divisions and services12 Lending volume

14 Shipping Finance

24 Aviation Finance

34 Offshore Finance

44 Land Transport Finance

52 Financial Institutions and Syndications

55 DVB Corporate Finance

60 Investment Management

01/ DVB – Business model5 Competitive strengths

03/ DVB – Financials and outlook65 Financial figures

67 Macroeconomic environment and forecast

04/ DVB – About us71 Structure

74 Board of Managing Directors

79 Supervisory Board

80 Staff

05/ DVB – Further information83 DVB worldwide

85 Imprint

86 Photo credits

01/ DVB – Business model5 Competitive strengths

DVB’s mission statement

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.

The specialist

in international transport finance

01/ Business model 02/ Business divisions and services 03/ Financials and outlook 04/ About us 05/ Further information

Client Presentation __ October 2017 __ Competitive strengths

DVB’s business model (1)

Asset & Market Research

Structured Asset Lending

Private Equity Sourcing & Investments

Asset Management

Client Account

Risk Distribution & Loan Participations

Corporate Finance Solutions

Shipping

Finance

Aviation

Finance

Offshore

Finance

Land Transport

Finance



DVB’s business model (2)

Business divisions Business areas Products Customers Core region

/ Tankers

/ Bulk carriers

/ Container ships

/ Car carriers

/ Container boxes

/ Smaller to larger public and private

companies (shipowners, shipping

companies, charterers)

/ Europe

/ North/South America

/ Asia/Australia

/ Passenger aircraft

/ Freighter aircraft

/ Aircraft engines

/ Airlines

/ Operating lessors

/ Logistic companies

/ Europe


/ Asia

/ Middle East/Africa

/ Offshore support vessels

/ Subsea & construction vessels

/ Drilling units

/ Floating Production Storage

and Offloading

/ Owners and operators of offshore

vessels

/ Experienced financial investors within

the offshore sphere

/ Europe


/ Asia/Pacific

/ Offshore

/ Rail-based (freight cars, loco-

motives, passenger train sets)

/ Rail-related

(container chassis)

/ Equipment lessors

/ Railway companies

/ Shippers or industrial clients with own

rail equipment fleets

/ Europe

/ North America

/ Australia

Shipping Finance

Aviation Finance

Offshore Finance

Land Transport Finance

Investment Management Fundmanagement:

/ Shipping & Intermodal

Investment Management

/ Aviation Investment

Management

/ Private Equity Sourcing &

Investments

/ SIIM: ship/rail car/intermodal owners,

leasing companies, financial

institutions

/ AIM: institutional investors (pension

funds, hedge funds, private equity

firms)

/ Global coverage

/ Asset & Market

Research

/ Risk Distribution &

Loan Participations

/ Corporate Finance

Solutions

/ Client Account

In all Transport

Finance divisions:

Aviation Finance

solely:

/ Aviation Asset

Management

/ Advisory Services

/ Structured Asset

Lending



DVB’s ten competitive strengths

Business model clearly focused, distinctively specialised, diversified in many aspects, cycle-neutral and

international in scope

Business policy conservative and sustainable

Organisation transparent structures, swift information flow and prompt decision-making

Human resources highly qualified 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 granular and maturity-matched

Own funds sound capital base 10Client Presentation __ October 2017 __ Competitive strengths


Strengths

/ Clearly focused business model with a

unique specialisation, cycle-neutral

business approach, and a 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, experienced staff

/ Customised products and services, high

level of client service, as well as 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 matched-maturity funding

/ Sound capital base through own funds

S

/ Higher liquidity costs, compared to most

competitors

/ Direct relationship between the Bank's

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 in terms of

academic expertise and experience

/ No material client deposits

/ Exposure to the euro/US dollar

exchange rate, with an impact on growth

and results

W

/ Realisation of margins in line with risks

taken

/ Expansion of anti-cyclical Investment

Management activities

/ Building new client relationships

/ Numerous initiatives taken to broaden

the product portfolio and enhance cross-

selling

/ Funding available through access to the

extensive liquidity offered by the

German Cooperative Financial Services

Network

/ Expanding the advisory and other

services offered to clients, banks, and

investors

/ Boosting DVB's reputation as a reliable

partner to the international transport

industry

O

/ High level of early repayments,

negatively impacting the net interest

margin

/ Rising number of insolvencies,

especially in the shipping and offshore

markets

/ Significant decline in transport asset

values, in various market segments

/ Rising threat of recession, on a global

scale

/ Distortions on the global financial

markets

/ Indebtedness of certain industrial

nations and emerging economies

/ Rise of the US dollar against the euro

/ Further increasing regulatory

requirements

/ Development of commodity prices, in

particular oil prices

T

DVB’s SWOT analysis

Weaknesses Opportunities Threats



Instruments for sustainably dealing with credit risks

/ 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

Intensive

research and

close client

contact

/ e.g. specific covenants

in the Shipping Finance

contracts, like value

maintenance clauses

Close monitoring

of compliance

with all lending

agreements

/ 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

Warning

List

/ Early detection of

increased risks of

potential problem

exposures

Closely

Monitored

List

/ 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

Watch

List

/ In general, transactions

are placed on the LLP

List if risks have

materialised, and the

deal has been classified

as defaulted.

Loan Loss

Provision

List







02/ DVB – Business divisions and services12 Lending volume

14 Shipping Finance

24 Aviation Finance

34 Offshore Finance





Customer lending volume

US$ bn 30 Jun 2017 31 Dec 2016 %

Shipping Finance 12.5 12.6 -0.8

Aviation Finance 8.2 9.1 -9.9

Offshore Finance 2.4 2.5 -4.0

Land Transport Finance 1.7 1.7 –

Investment Management 0.6 0.6 –

ITF Suisse 0.2 0.6 -66.7

Business no longer in line

with DVB’s strategy 0.1 0.2 -50.0

Total 25.7 27.3 -5.9

€ bn 30 Jun 2017 31 Dec 2016 %

Shipping Finance 11.0 11.9 -7.6

Aviation Finance 7.2 8.7 -17.2

Offshore Finance 2.1 2.4 -12.5

Land Transport Finance 1.5 1.6 -6.3

Investment Management 0.5 0.6 -16.7

ITF Suisse 0.1 0.6 -83.3

Business no longer in line

with DVB’s strategy 0.1 0.1 –

Total 22.5 25.9 -13.1

by business division

by region

48.9% Shipping Finance

0.5% ITF Suisse

2.2% Investment Management

6.6% Land Transport Finance

9.3% Offshore Finance

32.0% Aviation Finance

48.9% Europe

0.5% Australia & New Zeeland

2.2% South America

4.0% Offshore

4.9% Middle East & Africa

16.4% Asia

23.1% North Amerika

0.5% Business no longer in

line with DVB‘s strategy

Client Presentation __ October 2017 __ Lending volume


83.4

72.5

52.8

76.377.0

70.8

54.0

70.168.2

70.9

54.4

72.670.0 71.1

63.0

72.3

80.2

71.375.3

70.6

0

10

20

30

40

50

60

70

80

90

100

Shipping Finance Aviation Finance Offshore Finance Land Transport Finance

2012 2013 2014 2015 2016

Portfolio collateralisation

Loan-to-value ratio – relation between drawn loans and the market value of the assets financed

%

Client Presentation __ October 2017 __ Lending volume


Shipping Finance –

In-depth expertise

Shipping Finance – In-depth expertise

Our mission statement: „To create sustainable risk-adjusted income through providing bespoke financial

solutions to our diversified client base, leveraging our unique global position in the shipping industry”

/ Our dedicated approach and our commitment to the shipping industry bring us closer to our clients.

/ Our Shipping Finance portfolio is strongly diversified across sectors and geographic regions.

/ Our target assets include, amongst others, tankers (crude oil, gas, chemical, product), dry bulk vessels,

container vessels, container boxes, car carriers and ferries.

/ 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.


Client Presentation __ October 2017 __ Shipping Finance

Shipping Finance portfolio (30 Jun 2017: €11.0 bn)

Total lending volume by vessel type Total lending volume by country risk

1.3% Ferries, passenger vessels

48.1% Tankers

thereof:

14.4% Crude oil tankers

11.6% Gas tankers

11.3% Product tankers

10.8% Chemical tankers

55.2% Europe

3.6% Offshore


15.2% Asia

21.2% North America25.7% Bulk carriers

0.9% South &

Central America

1.3% Others

1.7% Cruise ships

2.7% Container boxes

3.1% Car carrier

16.1% Container carriers



Shipping Finance – Deal of the year 2016

IVS Bulk

In 2016, DVB closed a deal with IVS Bulk Pte Ltd (IVS Bulk), a subsidiary of Grindrod Shipping Pte Ltd, established in 2013. On the

back of our marketing efforts since 2008, we have established an active and engaging relationship with Grindrod Shipping since our

first ship finance deal for a fleet of tanker and dry bulk vessels in 2011. We closed our first deal with IVS Bulk in 2014 for six of the

twelve newbuildings. With the lowest dry bulk markets, the follow-on deal with existing club banks for the remaining six newbuildings

did not materialise at that time.

Given the relationship established with Grindrod over the years and our commitment to support the company’s shipping ventures, we

were asked to assist in structuring a deal for their remaining Supramax and Handysize vessels. Together with the client, we arranged

a conservatively structured finance package as back-stop finance for the state-of-the-art newbuildings.

The deal was syndicated in close cooperation with our Financial

Institutions and Syndications team.

Despite challenging markets, DVB was able to successfully syndicate

the remaining commitment to a European and Japanese lender.

customers. Grindrod Shipping was very appreciative of our continuous

support, providing structured services at times when other lenders were

withdrawing from dry bulk deals – even for their relationship.



Shipping Finance – Some important deals 2016

Pacific Gas

PDP Financing

1 x newbuild Very Large Gas Carrier

US$13.3 million

Sole Arranger & Underwriter

Scorpio Tankers

364-Day Refinancing Facility

4 x product tankers

US$90 million

Sole Arranger, Underwriter & Lender

Sloman Neptun

Sloman Neptun

3 x 16.5 dwt IMO II chemical tankers

US$35 million

Sole Arranger & Facility Agent

Trafigura

Sale-and-Lease-Back Financing

3 x newbuild MR product tankers

(2015 and 2016)

Co-investment with MSEA Capital

MTMM

Refinancing for

6 x chemical tankers

US$37.2 million

Arranger & Agent

MSC Mediterranean Shipping Company

Financing for

Fleet of container vessels

US$80 million

Mandated Lead Arranger

Minsheng Financial Leasing/Trafigura

Senior Loan Facility

8 x bitumen tankers

US$149 million

Arranger

Lavinia/Laskaridis

Amortising Term Loan

2 x newbuild Newcastlemax dry bulk vessels

US$50 million

Bilateral

Grindrod/IVS

Senior Secured Term Loan Facility

2 x newbuild Handysize and

3 x newbuild Supramax dry bulk vessels

US$21 million

Sole Arranger & Bookbuilder

Goldenport

Refinancing for

5 x Supramax dry bulk vessels

US$27 million

Bilateral

Awilco Eco Tankers

Financing for 4 x Eco design

Very Large Crude Carriers

US$230 million (club deal with ABN,

Nordea and Credit Agricole)


CMA CMG

Japanese Operating Lease

with Call Option

Fleet of reefer container boxes

Mandated Lead Arranger &

JOLCO Arranger

Tsakos Energy Navigation (TEN)

Refinancing of

2 x Suezmax tankers

1 x Very Large Crude Carrier

US$30 million

Co-Arranger



Shipping/Offshore Finance – Accolades

__ 2016

/ Bank Debt – West; Deal of the Year 2015 Marine Money Shipping

/ Export Credit Agency – West; Deal of the Year 2015 Marine Money Shipping

__ 2013

/ Editor’s Choice Award – Navigator Gas Marine Money

/ Editor’s Choice Award – Sovcomflot Marine Money

/ Contribution to Ship Financier Marine Money

/ Bank Debt Deal of the Year 2012 Marine Money Offshore

/ Editor’s Choice Award 2012 – Norskan Offshore Marine Money Offshore

/ The Ship Finance Award Seatrade Asia

__ 2012

/ Shipping Financier of the Year Greek Shipping Awards (Lloyd’s List)

/ Leasing (East) Deal of the Year 2011 Marine Money

/ Securizations Deal of the Year 2011 Marine Money




__ 2011

/ Editor’s Choice of the Year – West Marine Money

/ Editor’s Choice of the Year – Shipping Research Marine Money

/ Leasing Deal of the Year – East Marine Money

/ Project Finance Deal of the Year Marine Money

/ Export Credit Deal of the Year – West Marine Money

__ 2010

/ Asia Ship Finance Award 2010 Seatrade Asia

/ Shipping Debt Deal of the Year – South America Jane’s Transport Finance

/ Shipping Leasing Deal of the Year Jane’s Transport Finance

__ 2009

/ Shipping Deal of the Year – North America Jane’s Transport Finance

/ Award for Contribution to Ship Finance 2008 Marine Money




__ 2008

/ Best Shipping Finance Research Lloyd’s Shipping Economist

__ 2006

/ Restructuring Deal of the Year 2006 Marine Money


/ Ship Finance Personality for Dagfinn Lunde Lloyd’s Shipping Economist

/ M&A Deal of the Year 2005 Marine Money

__ 2007

/ Shipping Debt Deal of the Year – Europe Jane’s Transport Finance

__ 2005

/ Best Shipping Finance Research Lloyd’s List Economist




__ 2004


/ Shipping Equity Deal of the Year Jane’s Transport Finance

/ Most Innovative Shipping Finance Deal Lloyd’s Shipping Economist

/ Best Ship Financier Lloyd’s List Maritime Asia

__ 2002

/ Most Professional Overall Finance Service to Shipping Lloyd’s Shipping Economist

__ 1999


__ 2001

/ Best Overall Knowledge of the Tanker Sector Lloyd’s Shipping Economist

__ 2000

/ Most Innovative Ship Finance Institution Worldwide Lloyd’s Shipping Economist



2017

Shipping markets – Outlook 2017

/ Overcapacity in the existing fleets will continue to represent a challenge in the shipping markets.

/ The difficult environment in the shipping and offshore sectors is putting pressure on shipyards.

/ The lack of private equity activity and bank financing in the second-hand market will continue to stress market

values especially for older tonnage.

/ Defaults and consolidation have occurred amongst shipowners and charterers and these are expected to continue.

/ These persistent market distortions further burdened shipping clients’ liquidity cushions. This has in turn affected

lenders to a higher extent than before.

/ Major regulatory changes are on the way. However, although the Ballast Water Treatment was due to become

effective in September 2017, the International Maritime Organization has granted a two-year extension. As this new

regulation translates into additional investments, it was expected to accelerate the phasing out of older units

(especially larger ones for which ballast water treatment installations are most expensive). The extension will

postpone the phasing out of these units.



Aviation Finance –

Integrated platform

solutions

Aviation Finance – Integrated platform solutions (1)

Our mission statement: As a hybrid institution, we provide our customers with the most efficient

blend of capital and services at any period in time and at any point along the industry cycle.

/ 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.


Client Presentation __ October 2017 __ Aviation Finance

2017

Aviation Finance – Integrated platform solutions (2)

Aviation

Investment

Management

Aviation

Asset

Management

Aviation

Financial

Consultancy

Asset Research

Structured

Asset

Financing

Information & Strategic Marketing

DVB Aviation



Aviation Finance portfolio (30 Jun 2017: €7.2 bn)

Total lending volume by aircraft type Total lending volume by country risk

4.4% Regional jets

thereof:

4.2% Embraer

0.2% Bombardier

5.0% Freighters

thereof:

4.5% Boeing

0.5% Airbus

2.0% Turboprops

thereof:

1.8% ATR

0.2% Bombardier

51.1% Narrowbody pax

thereof:

25.4% Boeing

25.7% Airbus

35.3% Europe

2.2% South & Central America

4.5% Offshore


23.8% Asia & Australia

37.5% Widebody pax

thereof:

23.1% Boeing

14.4% Airbus

24.6% North America



Aviation Finance – Deal of the year 2016

KDAC

In April 2016, Aviation Investment Management (AIM), in its capacity as consultant to the Deucalion Aviation Funds, signed a sale

agreement with one of DVB’s long-standing partners, AerCap, for the purchase of a portfolio of 37 aircraft.

The well-diversified portfolio of mid-life assets formed the basis for a new joint venture ‒ called KDAC ‒ between Deucalion Limited

and one of its investment firm partners. The subject deal, with its substantial size, offered the opportunity to build a platform with the

flexibility to grow and explore multiple exit opportunities.

The portfolio’s size, equity requirement, and average age of ten years represented challenges for some competing bidders. By

utilising the resources and expertise of our wider Aviation platform, AIM was able to identify value in the portfolio where others had

been unable to do so. Furthermore, the execution capabilities of AIM were an added attraction for the seller which was looking to

meet a tight closing timetable.

Our Aviation Asset Management team was appointed servicer of the

portfolio and our structured lending team joined the senior debt facility

as a co-underwriter with BNP Paribas (lead arranger) and Citibank (co-

underwriter). The transaction reinforced our position as a market leader

when it comes to managing experienced third-party equity in large mid-

life aircraft deals.



Aviation Finance – Some important deals 2016

Allegiant

Full Recourse Financing

5 x A320-200

Bilateral

Asiana Airlines

Finance Lease

Portfolio of 9 used aircraft

Agent & Arranger

Avolon

Limited Recourse Financing

Portfolio of 7 aircraft

Debt Arranger & Underwriter

Gulf Air

Financial Advisory Mandate

Arrange financing for 20 aircraft

delivering 2018‒2020

Sole Advisor

LOT Polish Airlines

Aircraft Sourcing, Lease Negotiation

and Analysis

B737 family and A320 family aircraft

Sole Advisor

Nordic Aviation Capital

Japanese Operating Lease with

Call Option

3 x ATR72-600 on lease to Garuda


Singapore Airlines

Sale of 5 x A320 aircraft

on behalf of the airline's subsidiary

Tiger Airways

Remarketing Agent

Guggenheim (now Altavair)

Limited Recourse Financing

2 x A330-300 on lease to Delta

Agent & Arranger

DVB

Aviation

Asset

Management

DVB's Aviation Asset Management

139 aircraft under lease management

in 2016

DVB’s Aviation Investment Management

Investment Consultant to equity funds owning

132 commercial aircraft on lease

2 airline equity investments

More than US$1 billion of equity

currently managed

DVB

Aviation

Investment

Management

SPDB Financial Leasing

Operating Lease Financing

2x B737-800 on lease to Shandong Airlines

Agent & Arranger

Vietnam Airlines

Finance Lease Financing

1 x B787-9

Arranger

Virgin Atlantic

JOLCO Financing

B787-9




Aviation Finance – Accolades

__ 2017

/ Aircraft Securisation Deal of the Year – US Global Transport Finance

/ Aircraft Finance Portfolio Acquisition Global Transport Finance

__ 2012

/ Sale/Leaseback Deal of the Year 2011 Airfinance Journal

/ Predelivery Payment Deal of the Year 2011 Airfinance Journal

/ North America Deal of the Year 2011 Airfinance Journal

__ 2016

/ Europe Deal of the Year Airfinance Journal

/ Used Aircraft Deal of the Year Airfinance Journal

__ 2015

/ Commercial Loan Deal of the Year Airfinance Journal

__ 2013

/ Used Aircraft Deal of the Year 2012 Airfinance Journal




__ 2010

/ Regional Jet Deal of the Year Airfinance Journal

/ Aviation Research House of the Year Jane’s Transport Finance

__ 2009

/ Aircraft Debt Deal of the Year – North America Jane’s Transport Finance

/ Aircraft Debt Deal of the Year – South America Jane’s Transport Finance

__ 2008

/ Aircraft Debt Deal of the Year – Asia Jane’s Transport Finance

/ Aircraft Debt Deal of the Year – Middle East Jane’s Transport Finance

/ Aircraft Capital Markets Award Jane’s Transport Finance

/ PDP Deal of the Year Airfinance Journal

/ Cargo Finance Deal of the Year Airfinance Journal

/ Africa Deal of the Year Airfinance Journal




__ 2007

/ Aircraft Debt Deal of the Year – Africa Jane’s Transport Finance

__ 2005

/ Long Term Aircraft Finance Deal of the Year – Middle East Jane’s Transport Finance

__ 2002

/ Aircraft Debt Deal of the Year – Europe Jane’s Transport Finance



2017

Aviation markets – Outlook 2017

/ Demand for passenger transport remains robust as global traffic grew 7.9% (year-over-year) for the first five months of 2017. Airfreight

volumes showed a spectacular growth of 10.2% over the same period. During 2015/2016 passenger yields fell by about –10%, largely as a

response to lower fuel cost, but this trend will probably come to an end with an anticipated drop of only –2% this year.

/ Global airline results (net profits) jumped between 2014 and 2015 from US$13.7 billion to US$35.9 billion, thanks to the low oil price and high

load factors. Preliminary figures for 2016 show a virtual stabilisation at US$34.8 billion. Industry projections for 2017 only see a minimal

softening to US$31.4 billion. Fuel cost are expected to increase vs. 2016 and may be partly compensated by improved fuel efficiency.

Significant cost increases are expected for labour with a projected 2.8% rise of unit labour cost per available tonne kilometre. There are no

industry reasons to expect a dramatic downturn, but political instability, terrorism, the airport hassle-factor and populist/protectionist rhetoric

could undermine the confidence of consumers in international (air) travel.

/ Commercial jet order activity peaked around 3,500 p.a. in 2013 and 2014 pushing the aircraft backlog to about ten years of production at

prevailing production levels. As expected, during 2015 and 2016 orders dropped to ca. 2,200 p.a. During the important Paris Air Show in June

2017, a significant volume of new orders and other commitments was recorded ‒ mostly for the new Boeing 737 version (the MAX 10)

launched during the air show. While the competing Airbus A320 family was also sold in significant numbers, order volumes for larger twin-

aisle aircraft models remained depressed. A relatively high share of orders came from leasing companies. Overall, the backlog still is very

strong and exceeds eight years of production.

/ Modern single-aisle aircraft values remain firm but select larger twin-aisle jets are showing clear weakness. Values of aircraft on lease remain

very strong as investors compete with each other for any opportunity to expand their portfolios. In general, there is ample commercial

financing available for new and increasingly also for used aircraft, especially if sold with a lease attached. There is no reason to expect a

sharp downturn in the short term for modern single-aisles such as the Airbus A320/321 and the Boeing 737, but there are concerns about the

values of select larger twin-aisles such as the Airbus A330 and A380 as well as the Boeing 777.



Offshore Finance –

Highly specialised industry

Offshore Finance – Highly specialised industry

Our mission statement: „To create sustainable risk-adjusted income through providing bespoke financial

solutions to our diversified client base, leveraging our unique global position in the offshore industry”

/ 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 company-specific strategic alternatives

with them, offering added-value services like Advisory and M&A.

/ Our clients within the industry range from owners/operators of offshore vessels to experienced financial investors

within the offshore sphere, the majority of which is concentrated in the offshore hubs of Europe, the Americas, and

Asia/Pacific.

/ Clients and prospective clients are serviced from three different locations: Singapore, New York and Oslo.

Client Presentation __ October 2017 __ Offshore Finance


Offshore Finance portfolio (30 Jun 2017: €2.1 bn)

Total lending volume by asset type Total lending volume by country risk

22.6% Drilling

thereof:

17.7% Rigs

4.9% Drillships

8.5% Floating Production –

F(P)SO

51.4% Europe

0.6% Middle East &

Africa 6.9% Offshore

12.1% North America

14.0% South &

Central America

15.0% Asia23.8% Subsea

thereof:

10.1% Offshore construction vessels

5.4% Seismic survey vessels

4.2% Multi-function service vessels

1.4% Standby rescue vessels

2.7% Others

45.1% Offshore support

thereof:

22.3% Platform supply

vessels

20.5% Anchor handlers

2.3% Oil well service

vessels



Offshore Finance – Deal of the year 2016

Greatship

Wholly-owned by the Great Eastern Shipping Company, the Greatship Group started operations in 2006. Today, the company owns a

fleet of four jack-up drilling rigs and more than 20 offshore support vessels.

Greatship entered the contract drilling business in 2009 after it took delivery of two Keppel FELS jack-up drilling rigs (Mod V-B

design). Two newbuildings from Lamprell (LeTourneau Super 116E design) were added to the fleet in 2013 and 2015. These four

units are on charter to Oil and Natural Gas Corp (ONGC) in India and are the most established designs for modern, non-harsh

environment jack-ups. They have been enhanced to meet the operating challenges of the Indian continental shelf, and also to drill

high-pressure/high-temperature wells.

Having continually banked the offshore business of the Great Eastern Shipping Group for over 15 years, we were invited into the

senior secured facility for the refinancing of Greatship’s four modern high-spec jack-up rigs.

The client approached us due to our longstanding relationship, and our

ability to assess the viability of the project despite the challenges in the

offshore sector. The modern assets with long-term ONGC contracts, and

Greatship’s financial strength attracted heavy competition. In this

transaction we partnered with four more financial institutions, each

taking equal stakes.



Offshore Finance – Some important deals 2016

Greatship (India) Limited

Financing for

4 x modern high-specification

jack-up drilling rigs

US$268 million


Gulf Agency Company

Fleet refinancing for

14 x offshore support vessels

Leveraging up to part-finance the acquisition

of 2 x anchor handling tug vessels

US$20 million

Bilateral

Volstad Maritime

Financing for “Grand Canyon III”,

a state-of-the-art ST259 offshore

construction vessel newbuilding

US$70 million

Co-Arranger




__ 2016

/ Bank Debt – West; Deal of the Year 2015 Marine Money Shipping

/ Export Credit Agency – West; Deal of the Year 2015 Marine Money Shipping

__ 2012

/ Shipping Financier of the Year Greek Shipping Awards (Lloyd’s List)

/ Leasing (East) Deal of the Year 2011 Marine Money

/ Securizations Deal of the Year 2011 Marine Money

__ 2013

/ Editor’s Choice Award – Navigator Gas Marine Money

/ Editor’s Choice Award – Sovcomflot Marine Money

/ Contribution to Ship Financier Marine Money

/ Bank Debt Deal of the Year 2012 Marine Money Offshore

/ Editor’s Choice Award 2012 – Norskan Offshore Marine Money Offshore

/ The Ship Finance Award Seatrade Asia




__ 2009

/ Shipping Deal of the Year – North America Jane’s Transport Finance

/ Award for Contribution to Ship Finance 2008 Marine Money

__ 2011

/ Editor’s Choice of the Year – West Marine Money

/ Editor’s Choice of the Year – Shipping Research Marine Money

/ Leasing Deal of the Year – East Marine Money

/ Project Finance Deal of the Year Marine Money

/ Export Credit Deal of the Year – West Marine Money

__ 2010

/ Asia Ship Finance Award 2010 Seatrade Asia

/ Shipping Debt Deal of the Year – South America Jane’s Transport Finance

/ Shipping Leasing Deal of the Year Jane’s Transport Finance




__ 2005

/ Best Shipping Finance Research Lloyd’s List Economist

__ 2008


__ 2006

/ Restructuring Deal of the Year 2006 Marine Money


/ Ship Finance Personality for Dagfinn Lunde Lloyd’s Shipping Economist

/ M&A Deal of the Year 2005 Marine Money

__ 2007

/ Shipping Debt Deal of the Year – Europe Jane’s Transport Finance




__ 1999


__ 2001

/ Best Overall Knowledge of the Tanker Sector Lloyd’s Shipping Economist

__ 2004


/ Shipping Equity Deal of the Year Jane’s Transport Finance

/ Most Innovative Shipping Finance Deal Lloyd’s Shipping Economist


__ 2002

/ Most Professional Overall Finance Service to Shipping Lloyd’s Shipping Economist

__ 2000

/ Most Innovative Ship Finance Institution Worldwide Lloyd’s Shipping Economist



2017

Offshore markets – Outlook 2017

/ Continued oil price uncertainty is leading to further cuts in exploration and production (E&P) spending

as oil and gas majors not only implement cost-cutting programmes, but also delay investments. It is expected that

offshore E&P spending will decrease by another 8% in 2017, with capital expenditures being more affected than

operational expenditures.

/ Demand for most offshore asset types is expected to further decline. Demand in regions with comparatively higher

oil price breakevens – such as the North Sea, West Africa or Brazil – continued to be more affected than lower-cost

production regions such as the Middle East.

/ On the supply side, the number of units on order remains large for most asset types. Rig owners and shipowners

are expected to continue to take measures to reduce supply growth as much as possible, by delaying deliveries

and scrapping older units.

/ In the short term, the initiatives for supply adjustment measures will not be sufficient to make up for the lost

demand. Hence, fleet utilisation is still expected to decline. As a consequence, the number of stacked units is likely

to continue to grow as shipowners and rig owners strive to preserve cash.

/ As the market continues to remain difficult, cash reserves amongst rig owners and shipowners are gradually

becoming depleted. Hence, we expect restructurings, distressed sales and bankruptcies to continue to be major

topics during 2017.



Land Transport Finance –

Consistent client franchise

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 transactions, 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.

Client Presentation __ October 2017 __ Land Transport Finance


Land Transport Finance portfolio (30 Jun 2017: €1.5 bn)

Total lending volume by asset type Total lending volume by country risk

56.2% Europe

2.8% Australia

41.0% North America

91.5% Rail-based

thereof:

63.9% Freight cars

17.8% Locomotives

8.6% Regional passenger train sets

1.2% Passenger coaches

8.5% Rail-related

thereof:

8.5% Container chassis



Land Transport Finance – Deal of the year 2016

ELL European Locomotive Leasing

ELL European Locomotive Leasing (ELL), Vienna, Austria, is a young but already leading lessor in the European locomotive full-

service leasing market. Set up in 2014, the company developed swiftly into a prominent position by leasing out the most modern

Siemens Vectron electric locomotives, offering the best market prospects in the European rail sector.

ELL approached us and other lenders early 2016 with the request for an extended refinancing facility that would allow optimising the

existing facility; provide debt for the future investments in 30 additional state-of-the-art electric locomotives; and support an even

further growth potential. In June 2016, the new eight-year term loan and revolving facility for ELL was signed. The security package

comprised typical asset-based elements. We acted as Hedging Bank as well as Facility and Security Agent for an international club of

six banks, and took the largest debt share.

This transaction improved ELL’s financing structure and pushed its

range of operational possibilities. We were pivotal for the closing of this

important deal and was again fully recognised as leading lender and

reference bank in this landmark transaction.

Client Presentation __ June 2017 __ Land Transport Finance


Land Transport Finance – Some important deals 2016

ELL European Locomotive Leasing

Senior Secured Term Loan & Capex Facility

Portfolio of Siemens Vectron E-Locomotives

€93 million

Hedging Bank, Facility and Security Agent &

Club Lender

NACCO, a CIT Company

Senior Secured Term Loan

Portfolio of freight railcars

Co-Arranger

SMBC Rail Services

Term Loan

Various railcars

US$50 million

Lead Arranger, Administrative &

Syndication Agent

Touax Rail

Three Term Loans

Diversified fleets of European freight cars

€97.6 million

Arranger, Facility and Security Agent &

Lender in two club deals and one direct loan

Napier Park

First ever Liquidity Facility for

Railcar ABS Notes

2,905 railcars

Arranger & Sole Provider (DVB)

Structuring Agent (DVBCF)



Land Transport Finance – Accolades

__ 2014

/ Rail Finance Innovator of the Year Global Transport Finance

/ Rail Finance Deal of the Year – Europe Global Transport Finance

__ 2017

/ Rail Capital Markets Deal of the Year – Americas Global Transport Finance

/ Rail Finance Deal of the Year – Americas Global Transport Finance

/ Best International Transport Finance Provider – Germany Transport News

__ 2015

/ Rail Finance Deal of the Year – Europe Global Transport Finance

__ 2012

/ Rail Finance Innovator of the Year Global Transport Finance

__ 2011

/ Rail Finance Innovator of the Year Jane’s Transport Finance



Land Transport Finance – Accolades

__ 2007

/ Rail Finance House of the Year Jane’s Transport Finance

/ US Rail Deal of the Year Jane’s Transport Finance

__ 2009

/ Americas Rail Deal of the Year Jane’s Transport Finance

__ 2006

/ European Rail Deal of the Year Jane’s Transport Finance

__ 2005

/ Road Finance Innovator Jane’s Transport Finance

__ 2010

/ European Rail Deal of the Year Jane’s Transport Finance

__ 2008

/ Rail Finance House of the Year Jane’s Transport Finance

/ US Rail Deal of the Year Jane’s Transport Finance



2017

Land transport markets – Outlook 2017

/ Demand perspectives for freight transport are positive in Australia and North America and neutral for Europe. The outlook for the European

rail passenger market is positive. Transport price, lease rate and utilisation rate increases can be expected in Australia and North America,

whereas the picture is flat for Europe.

/ In its reference scenario, the European Commission expects an annual 1.6% increase of European logistics and freight transport activity

between 2010 and 2030. SCI Verkehr forecasts a 1.4% rail freight performance (tonne-km) growth p.a. in Europe, 1% growth p.a. for new

locomotives and new freight cars as well as 4% p.a. for new urban rail equipment worldwide between 2016 and 2020.

/ The U.S. Department of Transportation’s Bureau of Transportation Statistics and Federal Highway Administration projected a compound

annual growth rate of +0.8% in rail freight for the period 2016‒2045. Moody’s projects a 1.25% to 2.0% rail freight carload volume growth

scenario for North America for the coming year.

/ Coal markets are still depressed in the United States (tighter emission regulations) and the United Kingdom (doubling of the carbon tax and

closure of some coal-powered stations), subdued in Australia (lower growth in demand from Asia, but the China-Australia Free Trade

Agreement lifts many import duties), but doing fine in continental Europe (more import due to mine closures). President Trump’s emphasis on

the reliance on coal could stimulate the important coal sector in USA.

/ Intermodal transport is likely to be positive.

/ Locomotive and freight car demand is weak, since current fleets must be better utilised first. Asset prices are stable or increasing outside

energy sectors (coal, oil and sand).

/ Leasing companies continue to gain market share in Europe and also in the freight car sector in North America.

/ The lack of train drivers gives railroad companies firm headwinds in Europe.



Financial Institutions and Syndications

Our skills and expertise as an arranger and syndicator mean that clients can rely on DVB to place their financing

requirements. We support our four Transport Finance divisions in raising non-public mezzanine and market debt globally.

The key drivers of our successful strategy are:

/ We coordinate existing and establish new relationships with global financial institutions.

/ We develop and maintain a good understanding of each financial institution’s risk appetite and requirements.

/ We ensure close cooperation with DVB’s global transport finance network, research and advisory teams.

/ We provide competitive pricing structures based on up-to-date information, access to global networks and ad-hoc analysis.

/ We empower effective management of the syndication process and provide a personalised bespoke approach towards

the banking partners.

/ We understand the wider economic conditions and how they affect transportation financing.

/ We offer shipping ECA (primarily maritime) arranging and coordination.

/ We coordinate secondary loan purchasing.

Client Presentation __ October 2017 __ Financial Institutions and Syndications


Financial Institutions and Syndications portfolio

(30 Jun 2017: €371.9 mn)

Total sell-down volume by business division

69.4% Aviation Finance30.6% Shipping Finance



Financial Institutions and Syndications – Outlook 2017

/ The banking industry is at the cross roads with both threats as well as opportunities on the horizon. The advent of Basel IV regulation coupled

with US dollar/euro exchange rates and a requirement to refocus on capital efficiency and non-risk-weighted-asset income (instead of loan

production) appear to be the key near-term issues facing banks. Macroeconomic and geopolitical uncertainty caused by the above factors is

increasing long-term costs of liquidity; this has partially contributed to shorter loan tenors being preferred across all industries.

/ With challenging shipping and offshore markets, it is expected that banks will continue to exit or scale down lending activity for the remainder

of the year and new appetite for shipping and offshore is likely to remain muted. We note however a more positive sentiment in the dry bulk

market which will potentially impact opportunistic lending towards this sector the second half of 2017. Capacity will either be reserved for

existing and core clients or focus on credit quality and vessel employment.

/ Within the world of aviation, senior secured debt remains popular, with some financial institutions continuing to expand their remits to include

limited-recourse portfolios, non-recourse balloons, operating leases, warehouse facilities and junior loans – all whilst attempting to minimise

balance sheet usage (utilising institutional funds and debt securitisation vehicles). Young narrowbodies continue to be regarded as the most

appealing aviation asset, due to their liquid element.

/ In rail, activity is expected to still be focused around the North American and European regions. Liquidity will remain available for portfolio

deals benefiting from a good diversification in terms of railcars and younger equipment. Appetite for small leasing companies with strong

financial track records as well as larger leasing companies and/or publicly-owned borrowers will likely be present.

/ For the remainder of the year, the Financial Institutions and Syndications team expects the number of deals closed for Aviation Finance and

Land Transport Finance to be similar to 2016. This however may not be enough to offset the expected slowdown in shipping and offshore

transactions. Despite the challenges facing the transportation industry, the Financial Institutions and Syndications team aims to continue to

leverage our asset and arranging expertise in order to strengthen existing and newly formed bank partnerships; and to work with our industry

partners in the sourcing of liquidity for our clients and wherever applicable, the distribution of loans.



DVB Corporate Finance

Our mission is to increase non-capital binding revenue, enhance cross-sell of DVB products and services,

and contribute to the sustainable top- and bottom-line growth of the DVB franchise.

/ As a bank-wide resource, DVB Corporate Finance (DVBCF) renders strategic and financial advisory services to

our corporate clients.

/ By leveraging our specialised transportation focus, in-depth corporate finance experience, and DVB’s asset-based

lending, we create tailor-made financial solutions for our clients.

/ Our traditional activities include mergers and acquisitions (M&A), advisory services, and private and public

placements of debt and equity. The debt capital markets and structured asset finance/asset-backed securities

(ABS) presence are a natural extension of DVB’s core loan business.

/ Our Private Placement Group maintains a close dialogue with a variety of global financial and strategic investors to

support DVBCF’s business initiatives.

/ Utilising our strong network of corporate clients and lending relationships, we develop strategic dialogues with our

clients to deliver integrated financial solutions.

Client Presentation __ October 2017 __ DVB Corporate Finance


DVB Corporate Finance portfolio (30 Jun 2017)

Revenue by business division Revenue by products

42.0% Capital Markets

58.0% Advisory and

Mergers & Acquisitions

1.0% Land Transport Finance

64.0% Shipping Finance

35.0% Aviation Finance



DVB Corporate Finance – Deal of the year 2016

ERR

DVBCF was the exclusive financial adviser on the sale of 100% of the share capital in ERR Rail Rent Vermietungs GmbH (ERR

Vienna) and 33.3% of the share capital in ERR European Rail Rent GmbH (ERR Duisburg) to Aves One AG. The ERR Rail Rent

Group (ERR Group) is a leading European freight car lessor, owning and managing a modern, high-quality and diversified fleet of

about 4,000 freight cars. Aves One, the acquirer, is a Hamburg-based publicly listed owner of logistics equipment.

ERR Group and the transaction benefited from our corporate finance specialists’ extensive experience in M&A and the considerable

asset and rail market expertise available through Land Transport Research.

DVBCF provided timely advice throughout the entire sale process, including, amongst others, positioning ERR Group for the sale

process, identifying the potential investor universe, valuation, process structuring and management, as well as negotiation and

transaction execution support.

This sell-side M&A advisory mandate was one in a series of value-added

services that DVB has provided to the ERR Group throughout the long-

standing client relationship developed across DVB’s Land Transport

platform.



DVB Corporate Finance – Some important deals 2016

Apollo Aviation Group

2 x Aircraft ABS Offerings

US$1.15 billion

Joint Bookrunner & Joint Arranger

Ardmore Shipping Corporation

Follow-on Equity Offering ‒ NYSE US

US$77 million

Co-Manager



2017

DVB Corporate Finance – Outlook 2017

/ Global M&A activity was robust in the first six months of 2017, up 8% from a year earlier at €1.3 trillion, primarily driven by the

increase in “mega” deals valued at over €8.8 billion and stabilisation in oil prices. Deal making in Europe was particularly strong

based on improved economic and earnings growth in the region, resulting in a 33% increase in volume compared to 2016. The

2017 outlook remains positive as an abundance of capital available at historically low rates coupled with solid investor sentiments

in Europe and Asia continue to boost deal flow.

/ Strong demand for corporate bonds and related products continued globally during the second quarter of 2017, supported by

improving risk appetite, low interest rates, and low volatility. Primary market activity in the shipping and offshore sector

accelerated. Year-to-date, we have seen bond transactions in the US and European/Norwegian high yield markets and debt-like

placements of preferred shares receive strong investor support. Most new issuances were related to extending existing debt but,

in select cases, also to raising incremental liquidity for acquisitions and growth. We expect the return of investor confidence to

benefit maritime borrowers in certain segments during the second half of 2017 with alternative non-bank credit investors also

playing a visible role.

/ Transport-related ABS opened 2017 at a record pace. Led by a resurgence in container-backed issues, more deals were

brought to market during the first half of 2017 than for all of 2016, whilst issuance volume of €3.4 billion is close to overtaking

full-year 2016’s €4.3 billion. Current projections suggest the market is on track to challenge 2014’s post-financial crises record of

€6.2 billion. DVBCF continues to rank high in the manager tables, driven principally by its role in aircraft-backed, and growing

presence in railcar-backed ABS.

/ Our corporate bond/private placement, and structured finance product specialists seek to complement the financing requirements

of clients, support M&A activity, and diversify capital sources and distressed/balance sheet repair activities.




/ We are active as an investment consultant and asset manager for closed-end investment vehicles in

the international transport sector.

/ We assume an investment management function on behalf of institutional clients – but where DVB

aligns its interest with institutional clients with a material yet minority equity risk participation.

/ The Aviation Investment Management (AIM) team manages the Deucalion aircraft and aviation

investments.

/ Our Shipping & Intermodal Investment Management (SIIM) team unites the Bank’s investment

management activities in the shipping, offshore, intermodal transport and rail transport sectors.

/ Investors profit from DVB’s asset know-how and strong market penetration.

Client Presentation __ October 2017 __ Investment Management


Investment Management – Investment volume (30 Jun 2017)

Breakdown of the investment volume

73.0%

AIM

27.0%

SIIM

SIIM: thereof: 23.9% SIIM/NFC Shipping Funds 1.8% Stephenson Capital 1.3% Container Funds

SIIM shipping portfolio by asset type €291.0 mn

15.4% Other investments

54.5% Tankers

thereof:

18.3% LPG tanker

17.4% Chemical tankers

7.6% Product tankers

6.2% Crude oil tankers

5.0% LNG tankers

4.9% Car carriers

7.0% Bulk carriers

7.9% Containerships

10.3% Offshore vessels

AIM by asset type €889.0 mn

thereof:

14.8% Widebody

2.1% Engines

0.1% Narrowbody

3.2% Freighter widebody

29.4% Passenger widebody

50.2% Passenger narrowbody

0.2% Other

17.0% Disassembly



2017

Investment Management (AIM) – Outlook 2017

/ For 2017, AIM expects the aviation market to remain stable as operators will likely benefit from a stable fuel price

environment, relatively low interest rates, good access to liquidity and a high level of new aircraft deliveries.

However, there will be challenges in certain regions where yields will be stressed by increased capacity and

currency concerns. While there is speculation within the market that the industry is at a peak in the cycle, there is

no signal of a downturn in the leasing sector as the still very significant flow of capital into the market should help

buoy asset prices.

/ Investor appetite for the funds will not likely lessen in 2017, as DVB’s knowledge of the industry, the strength of its

Aviation platform, and its asset-based approach provide the funds with a truly unique asset-focused platform to

take advantage of the current market conditions with a well-informed and researched view of the future.



2017

Investment Management (SIIM) – Outlook 2017

/ After a downward correction of most sectors in recent years, shipping markets are expected to remain weak

without significant improvements in 2017. Oversupply remains the current key issue in many sectors, especially in

the offshore market which suffers heavily as a result of low oil prices.

/ However, the outlook for some niche sectors, most of which with relatively high entry barriers – such as gas and

chemicals, in which SIIM is represented – continues to be more stable.

/ From an equity investment perspective, there are opportunities to enter or expand certain shipping segments at

attractive asset prices. Other financial investors are reassessing their view on and presence in the shipping

markets.

/ For our intermodal investments, the container box leasing market continues to improve with attracting per diem

rates and container box prices. Our container box investments are expected to keep showing good operational and

cash flow performance, supported by a diversified group of lessees. SIIM’s rail investment portfolio is performing

well with a positive profit contribution.

/ Our main focus for 2017 is to control the risks in the shipping investment portfolio and enhance diversification of the

total SIIM investment portfolio. Despite some challenges in the short term, the medium-term outlook for the SIIM

investment portfolio is moderately positive.



03/ DVB – Financials and outlook65 Financial figures

67 Macroeconomic environment and forecast

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 June 2017

and have been reviewed by auditors.


Client Presentation __ October 2017 __ Financial figures

At a glance – Income statement

1 National Association of German Cooperative Banks

01.01.2017−

30.06.2017

01.01.2016−

30.06.2016

Net interest income 108.1 124.5 -13.2

Allowance for credit losses -445.3 -83.4 –

Net interest income after allowance for credit losses -337.2 41.1 –

Net fee and commission income 51.8 56.5 -8.3

Results from investments in companies accounted for using the equity method -7.2 4.1 –

Net other operating income/expenses -42.6 4.8 –

Total income (before IAS 39) -335.2 106.5 –

General administrative expenses -90.4 -91.3 -1.0

Consolidated net income/loss before IAS 39, bank levy,

BVR1 Deposit Guarantee Scheme and taxes -425.6 15.2 –

Net result from financial instruments in accordance with IAS 39 -67.9 10.0 –

Consolidated net income/loss before bank levy,

BVR1 Deposit Guarantee Scheme and taxes -493.5 25.2 –

Consolidated net income/loss before taxes -506.3 14.1 –

Consolidated net income/loss (after taxes) -547.1 10.6 –

IFRS

€ mn %

Client Presentation __ October 2017 __ Financial figures


Macroeconomic environment (1)

The International Monetary Fund (IMF) has kept its forecasts on the recovery of the global economy (published on 24 July 2017)

largely unchanged: it forecasts global economic growth of 3.5% in the year 2017 – slightly above the previous year's level

(projection for 2016: 3.1%), albeit with different contributions at the individual country level.

/ The US growth forecast has been revised downwards slightly. While the markdown in the 2017 forecast reflects in part the

weak growth outturn in the first quarter of the year, the major factor behind the growth revision is the assumption that fiscal

policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of US fiscal policy

changes. Market expectations of fiscal stimulus have also receded.

/ China's economic growth is expected to remain at the same level as in the previous year. Full-year growth projections have

been revised upwards, reflecting a surprisingly strong first quarter of 2017 which showed the effects of monetary policy easing

and supply-side reforms. The IMF's medium-term outlook, however, reflects an expectation that the Chinese authorities will

delay the needed fiscal adjustments to meet their target of doubling 2010 real GDP by 2020. However, this delay comes at the

cost of further large increases in debt, thus also increasing downside risk.

/ Euro area growth for the first quarter of 2017 was generally above expectations, maintaining the trend already seen in the

fourth quarter of the previous year. Growth projections have therefore been revised up, with loose fiscal policies, favourable

financing conditions, and growing momentum in domestic demand seen as key drivers.

/ Oil prices rebounded in the middle of May, when OPEC surprised the market with an extension of its production cuts through

March 2018. However, oil prices then declined until the end of July, amid continued US production growth and strong OPEC

exports to the US. Prices are expected to remain around their current levels until the end of 2018.

Source: IMF, July 2017

Client Presentation __ October 2017 __ Macroeconomic environment and forecast


Macroeconomic environment (2)

DVB agrees with expert opinion and expects further economic growth to remain volatile on the back of the following risk factors:

/ The difficult-to-predict developments of US regulatory and fiscal policies and the negotiations of post-Brexit arrangements may

lead to a more protracted period of political uncertainty.

/ A faster-than-expected monetary policy normalisation in the US could tighten global financial conditions and trigger reversals in

capital flows to emerging economies, as well as an appreciation of the US dollar versus the euro – with adverse repercussions

for vulnerable economies.

/ Should China diminish its recent efforts to address financial sector risks and curb excessive credit growth, this might result in

an abrupt growth slowdown, with adverse spillovers to other countries through trade flows and commodity prices.

/ Increased geopolitical tensions and growing terrorism might impact upon the global economy.

/ Further developments in commodity prices – especially with respect to crude oil prices – will continue to have a major impact

on economic growth.

Source: IMF, Julyl 2017



Forecast 2017

/ We plan to sustain the positive business development in Aviation Finance as well as in Land Transport Finance, and strengthen the

earnings power of these businesses.

/ We expect risk costs in our Shipping Finance and Offshore Finance portfolios to remain high throughout the financial year 2017 –

due to the persistent crisis in the shipping and offshore sectors. Accordingly, risk management in these two divisions will continue

to command particular attention, as well as proactive restructuring measures.

/ We thus expect consolidated return on equity for 2017 (before taxes and before IAS 39) to significantly fall short of the forecast; it

is also unlikely to match the forecasts for the other key financial indicators, cost/income ratio and Economic Value Added.

/ We strive to preserve our sound core operational earnings before risk costs and before IAS 39. This means that, in addition to our

lending business, we will focus on value-added services for clients in our Transport Finance business – such as capital markets

products and advisory services.

/ We will keep supporting our shipping clients in a market environment characterised by less liquidity supply, on a selective basis –

yet with markedly lower volumes of new business.

Structural changes with differing characteristics can be observed in the sub-markets of the global transport sector. Whilst aviation

and land transport markets are predominantly shaped by high excess liquidity together with strong margin and competitive

pressures, the shipping and offshore industries have yet to see the end of the ongoing consolidation phase.

/ We will continue to analyse the business environment in the markets we cover, in great detail – to focus on business opportunities

which allow us to return to adequate profitability, and to sustainably stabilise for the future.



04/ DVB – About us71 Structure

74 Board of Managing Directors

79 Supervisory Board

80 Staff

Integrated into Germany’s second-largest banking group

*

*

Retail Banking Corporate Banking Capital MarketsTransaction

Banking

Cooperative Banks/

Verbund

*at equity

Client Presentation __ October 2017 __ Structure


Full member of the BVR Deposit Guarantee Scheme

Members

994 cooperative banks, 1 central institution and special

cooperative network institutes

Monitoring

By Federal Financial Supervisory Authority (BaFin)

Deposit Protection

Comprehensive protection of customer deposits and

bearer bonds issued by member banks and held by non-

banks

Institution protection

Comprehensive institution protection for all members,

no bankruptcy among members since 1934, preventing or

remedying impending or existing economic difficulties at

institutions affiliated



Current shareholder base

Seite 73

100.00%

/ Squeeze-out resolution of the AGM

/ Expiration of the period for filing an action of avoidance

/ Registration into the Commercial Register

/ Delisting at the Frankfurt Stock Exchange – General Standard

/ Payment of the cash compensation per share to minority shareholders

22 June 2017

24 June 2017

17 August 2017

17 August 2017

22 August 2017



Responsibilities of DVB’s Board of Managing Directors

as of 1 January 2017

Client areas in business divisions Client areas at affiliatesProduct/service areas

Ralf

Bedranowsky

CEO and Chairman

of the Board of

Managing Directors

David

Goring-Thomas

Member of the

Board of

Managing Directors

Christian

Hagemeyer

Member of the

Board of

Managing Directors

L.H. (Bart)

Veldhuizen

Member of the

Board of

Managing Directors

Client Presentation __ October 2017 __ Board of Managing Directors

Corporate

Finance

Shipping

Finance

Offshore Finance

Shipping and

Intermodal

Investment

Management

Information

Technology

DVB Capital

Markets LLC

Aviation

Credit

Credit and

Asset Solution

Group

Land Transport

Research

Aviation

Research

Land Transport

Credit

Shipping and

Offshore

Credit

Group Risk

Management

Aviation

Finance

Aviation

Investment

Management

Land Transport

Finance

Aviation

Financial

Consultancy

Financial

Institutions

and

Syndications

Group

Treasury

Transaction

and

Loan Services

DVB Transport

Finance Ltd

Business Process

Support

Group Compliance

Office

Group

Corporate

Communications

Group

Audit

Group Controlling

Group

Finance

ITF

International

Transport Finance

Suisse AG

LogPay Financial

Services GmbH

Group Human

Resources

Group

Legal

Shipping and

Offshore

Research


Members of the Board of Managing Directors

Ralf

BedranowskyCEO and Chairman of

the Board of Managing Directors,

Bank director

Since July 2015

2013–2015

2007–2013

2004–2007

1980–2004

DVB Bank SE, CEO and Chairman of the Board of Managing Directors

DVB Bank SE, Member of the Board of Managing Directors

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

Landesbank Hessen Thüringen, Member of the Board of Managing Directors

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

Offices held

Chairman of the Supervisory Board

DVB Bank America N.V., Willemstad, Curaçao

Chairman of the Board of Directors

DVB Holding (US) Inc., New York, USA

DVB Group Merchant Bank (Asia) Ltd, Singapore

ITF International Transport Finance Suisse AG,

Zurich, Switzerland

Member of the Board of Directors

DVB Capital Markets LLC, New York, USA

Member of the Advisory Board

Hellmann Worldwide Logistics GmbH & Co KG,

Osnabrück, Germany

Responsibilities

Product/service areas

Business Process Support

Group Audit

Group Compliance Office

Group Controlling

Group Corporate Communications

Group Finance

Group Human Resources

Group Legal

Client areas in affiliates

ITF International Transport Finance Suisse AG

LogPay Financial Services GmbH

Curriculum Vitae




David

Goring-ThomasMember of the Board of

Managing Directors,

Bank director

Since December 2016

1998–2016

1997–1998

1995–1997

1994–1995

1990–1994

1987–1990

1984–1987


DVB Bank SE London Branch, Deputy General Manager of London Branch, Managing Director and

Global Head of Aviation Finance

The Long-Term Credit Bank of Japan Ltd, London Branch, Deputy General Manager and

Head of Aviation Finance – Europe, Middle East & Africa

LTCB Merchant Bank (Singapore) Ltd/The Long-Term Credit Bank of Japan Ltd, Singapore Branch,

Senior Vice President, Head of Aviation Finance – Asia

The Long-Term Credit Bank of Japan Ltd, London Branch, Manager/Senior Manager, Aviation Group

Swiss Bank Corporation, London, Merchant Banking, Assistant Manager/Manager in the Aviation Finance Group,

and Manager Corporate Finance

National Westminster Bank, International Banking Division, London, Graduate Trainee, Account Officer in

Transportation (Aerospace) and Assistance Manager (Personnel)

University of Manchester, B.A. Economics Honours

Offices held


DVB Transport Finance Ltd, London,

United Kingdom




Responsibilities


Group Treasury

Transaction and Loan Services

Client areas in business divisions

Aviation Finance

Aviation Financial Consultancy

Aviation Investment Management

Financial Institutions and Syndications

Land Transport Finance


DVB Transport Finance Ltd

Curriculum Vitae




Christian

HagemeyerMember of the Board of

Managing Directors,

Bank director

Since January 2017

2005–2016

2001–2005

1995–2001

1993–1995

1991–1993

1989–1991

1987–1989

1984–1987


Landesbank Hessen Thüringen, Head of Credit Risk Management

Deutsche Bank AG, Senior Credit Officer

Deutsche Bank AG, Head of Credit Large Caps

Deutsche Bank de Bary N.V., Group Head Risk Management Commodity Trade Finance

Deutsche Bank de Bary N.V., Relationship Manager Commodity Trade Finance

Deutsche Bank de Bary N.V., Relationship Manager German Desk

Deutsche Bank AG, Traineeship

University of Hamburg, M.A. Business Administration

Offices held

None

Responsibilities


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

Curriculum Vitae




L.H. (Bart)

VeldhuizenMember of the Board of

Managing Directors,

Bank director

Since April 2015

Since 2014

2014–2015

2013–2015

2013–2015

2012–2015

2011–2015

2007–2011

2002–2007

2000–2002

1995–1999

1993–1995

1989–1991


Eagle Bulk Shipping Inc., Non-executive Member of the Board and Chairman of the Compensation Committee

Armi Investments Pte, Costamare MLP, Member of the Board

Apollo Global Management, Senior Advisor

Seadrill Partners LLC, Member of the Board

Swaen Marine Ltd, sole director

Golar LNG Partners LP, Member of the Board

Lloyds Banking Group, Managing Director and Global Head of Shipping

NIBC Bank, Shipping Coverage Banker Transport & Energy

Smit Internationale, Member of the Management Team Singapore and Manager Greece

Nedship Bank, Relationship Shipping Banker

Van Ommeren Shipping, Management Trainee

Erasmus University Rotterdam, The Netherlands, M.A. Business Economics

Offices held





DVB Group Merchant Bank (Asia) Ltd, Singapore

Member of the Supervisory Board

DVB Bank America N.V., Willemstad, Curaçao

Non-executive Member of the Board and Chairman of the

Compensation Committee

Eagle Bulk Shipping Inc., New York, USA

Responsibilities


Information Technology

Client areas in business divisions

Corporate Finance

Offshore Finance

Shipping Finance

Shipping and Intermodal Investment Management


DVB Capital Markets LLC

Curriculum Vitae



DVB’s Supervisory Board – Members

As of May 2017

Wolfgang

Köhler

Chairman

Shareholder

representative

Frank

Westhoff

Deputy Chairman

Shareholder

representative

Ulrike

Donath

Shareholder

representative

Anders

Ingebrigtsen

Shareholder

representative

Dr Peter

Jansen

Shareholder

representative

Dr Kirsten

Siersleben

Shareholder

representative

Adnan

Mohammed

Employee

representative

Ivo

Monhemius

Employee

representative

Martin

Wolfert

Employee

representative

Client Presentation __ October 2017 __ Supervisory Board


Employees at DVB

Business areas

62 LogPay Financial Services

322 Transport Finance/


248 Service areas

30 Jun 2017: 643 active employees

Client Presentation __ October 2017 __ Staff


Business areas

61 LogPay Financial Services

312 Transport Finance/


241 Service areas

30 Jun 2016: 611 active employees

Nationalities in DVB (30 Jun 2017)

643 active employees

DVB Bank Group

333 active employees

Transport Finance/Investment Management

14.9% 33 other nationalities 42.6% German

11.7% Dutch

3.1% Norwegian

13.5% British

3.3% Greek

4.7% US-American

6.2% Singaporean

19.0% 22 other nationalities

17.7% Dutch

5.4% Greek

18.6% British

5.7% Norwegian

7.2% US-American

9.6% Singaporean

16.8% German

Client Presentation __ October 2017 __ Staff


05/ DVB – Further information83 DVB worldwide

85 Imprint

86 Photo credits

DVB worldwide


Client Presentation __ October 2017 __ DVB worldwide

Head office

Frankfurt/Main

DVB Bank SE

Platz der Republik 6

60325 Frankfurt/Main

Germany

Phone +49 69 9750 40

Fax +49 69 9750 4444

Europe

Amsterdam

DVB Bank SE

Amsterdam Branch

WTC Schipol, Tower F, 6th Floor

Schiphol Boulevard 255

1118 BH Schiphol, The Netherlands

Phone +31 88 3997 900

Fax +31 88 3998 301

Athens

DVB Bank SE

Athens Branch

3, Moraitini Street &

1, Palea Leof. Posidonos, Bldg. K4

Delta Paleo Faliro

175 61 Athens, Greece

Phone +30 210 4557 400

Fax +30 210 4557 420

Hamburg

DVB Bank SE

Hamburg Office

Ballindamm 6

20095 Hamburg, Germany

Phone +49 40 3080 040

Fax +49 40 3080 0412

London

DVB Bank SE

London Branch

Park House, 6th Floor

16-18 Finsbury Circus

London EC2M 7EB, United Kingdom

Phone +44 20 7256 4300

Fax +44 20 7256 4450

Oslo

DVB Bank SE

Nordic Branch

Haakon VII's gate 1

0161 Oslo, Norway

Phone +47 2301 2200

Fax +47 2301 2250

DVB worldwide

Client Presentation __ October 2017 __ DVB worldwide

North and South America

Curaçao

DVB Bank America N.V.

Gaitoweg 35

Willemstad, Curaçao

Phone +5999 431 8700

Fax +5999 431 8749

New York

DVB Bank SE

Representative Office New York

609 Fifth Avenue

New York, NY 10017-1021, USA

Phone +1 212 588 8864

Fax +1 212 588 8936

DVB Capital Markets LLC

609 Fifth Avenue

New York, NY 10017-1021, USA

Phone +1 212 858 2624

Fax +1 212 858 0424

Asia

Singapore

DVB Bank SE

Singapore Branch

77 Robinson Road #30-02

Singapore 068896

Phone +65 6511 3433

Fax +65 6511 0700

DVB Group Merchant Bank (Asia) Ltd

77 Robinson Road #30-02

Singapore 068896

Phone +65 6511 3433

Fax +65 6511 0700

Tokyo

DVB Transport Finance Ltd

Tokyo Branch

Ark Hills Sengokuyama Mori Tower 26F (2609)

9-10, Roppongi 1-chome, Minato-ku

Tokyo 106-0032, Japan

Phone +81 3 5114 1880

Fax +81 3 5114 1890


Imprint

Responsible for the content of this presentation

and contact:

Elisabeth Winter

Head of Group Corporate Communications

Managing Director

Phone: +49 69 9750 4329

E-mail: [email protected]

DVB Bank SE

Platz der Republik 6

60325 Frankfurt/Main, Germany

[email protected],

www.dvbbank.com

For further information please visit

www.dvbbank.com

After scanning this QR with your smartphone,

you will have direct access to our website.

Client Presentation __ October 2017 __ Imprint


Photo credits

Client Presentation __ October 2017 __ Photo credits

Front Cover:

Shipping Finance:

Pages 1, 14: M.T. Maritime Management (USA) LLC, Southport, USA

Aviation Finance:

Pages 1, 24: Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands

Offshore Finance

Pages 1, 34: Volstad Management AS, Ålesund, Norway

Land Transport Finance:

Pages 1, 44: Wouter Radstake, DVB Bank SE, Frankfurt/Main, Germany

01/ DVB – Business model

Page 4: DZ BANK AG/DVB Bank SE

02/ DVB – Business divisions and services

Page 11: Getty Images

Shipping Finance:

Page 15: Linda Slingerland, DVB Bank SE, Amsterdam, The Netherlands; iStock/davelogan and iStock/fstockfoto

Page 17: IVS Bulk Pte Ltd, Singapore

Aviation Finance:

Page 25: Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands; iStock/hunur

Page 28: Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands

Offshore Finance:

Page 35: Shutterstock, Inc., New York, USA

Page 37: Greatship (India) Limited, Mumbai, India

Land Transport Finance:

Page 45: Wouter Radstake, DVB Bank SE, Frankfurt/Main, Germany

Page 47: ELL Austria GmbH, Vienna, Austria

Financial Institutions and Syndications:

Page 52: iStock/bagotaj

DVB Corporate Finance:

Page 55: iStock/LdF

Page 57: ERR Rail Rent GmbH, Duisburg, Germany

Investment Management:


03/ DVB – Financials and outlook

Page 64: iStock/SusanneB

04/ DVB – About us


Pages 74–79 Board of Managing Directors and Supervisory Board of DVB Bank SE:

Andreas Fechner, Dusseldorf, Germany and DVB Bank SE, Frankfurt/Main, Germany

05/ DVB – Further information

Pages 82, 85: DVB Picture Archives


dvb bank group/media/files/d/dvb-bank... · this document is not a prospectus. ... us$ bn 30 jun...

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