IKB Deutsche Industriebank AG

FINAL PROSPECTUS
7 150,000,000 Dated Upper Tier 2 Securities
issued by
ProPart Funding Limited Partnership
(a limited partnership established under the laws of Jersey on 15 September 2005)
with the payment of coupons and principal conditional upon receipt of profit distributions and
repayment from cumulative profit participation securities (Genussscheine) issued by
IKB Deutsche Industriebank AG
Dsseldorf and Berlin
incorporated as a stock corporation (Aktiengesellschaft) under German law
Issue Price of the Dated Upper Tier 2 Securities: 100 %
The issue price of the 5 150,000,000 Dated Upper Tier 2 Securities in the denomination of 5 50,000 each (the Securities),
issued by ProPart Funding Limited Partnership (the Issuer), a limited partnership established under the laws of Jersey on
15 September 2005, is 100 per cent. of their principal amount.
The Securities will bear interest from (and including) 29 September 2005 (the Issue Date) at a rate of 3.768 per cent. per
annum, payable annually in arrear on 3 August of each year, commencing on 3 August 2006. Payments of interest (each
such payment a Coupon Payment) may be delayed and are contingent on the Issuer’s actual receipt of funds under the
Cumulative Profit Participation Securities, under the Loan Agreement and under the Indemnity Agreement (each as
defined below) as described in “Terms and Conditions of the Securities”.
With the proceeds of the issue, the Issuer will acquire profit participation securities (Genussscheine) issued on the Issue
Date by IKB Deutsche Industriebank AG (IKB or the Bank) in the aggregate principal amount of 5 150,000,000 (the Cumulative Profit Participation Securities). The Issuer expects to fund Coupon Payments on the Securities with profit distribution payments received under the Cumulative Profit Participation Securities and funds received from IKB under a loan
agreement. Pursuant to a fiduciary assignment and transfer agreement dated 27 September 2005 (the Fiduciary Assignment Agreement) between the Issuer, the Issuer’s partners, IKB, the Lender and BNP Paribas Trust Corporation UK Limited acting as a security trustee for the benefit of the holders of the Securities (Security Trustee), the Issuer has assigned
and transferred to the Security Trustee its ownership of the global certificate representing the Cumulative Profit Participation Securities and has assigned all of its claims against the Lender under the loan agreement and all of its claims
against IKB for indemnification in respect of withholding tax under the laws of Jersey, if any, to the Security Trustee for
the benefit of the holders of the Securities (the Securityholders).
The Securities are scheduled to be redeemed at their Redemption Amount (as defined herein) on 3 August 2015. Redemption may be delayed and is contingent on the Issuer’s actual receipt of funds under the Cumulative Profit Participation Securities. The Securities may be redeemed earlier if the Cumulative Profit Participation Securities are redeemed
prior to their scheduled maturity and at the option of the Issuer under certain tax-related conditions.
Investing in the Securities involves certain risks. Please review carefully the section entitled “Risk Factors” beginning on
page 24 of this Prospectus.
The Bank expects that, upon issuance, the Securities will be assigned a rating of A2 by Moody’s Investors Service, Inc.
and a rating of A by Fitch Ratings Ltd. A rating is not a recommendation to buy, sell, or hold securities, and may be
subject to revision, suspension or withdrawal at any time by the relevant rating agency.
The Securities will initially be represented by a temporary global security in bearer form without coupons which will be
deposited on or about the Issue Date with Clearstream Banking AG, Frankfurt am Main (Clearstream Frankfurt), where
the Securities have been accepted for clearance. The Securities will also be eligible for clearing and settlement in Euroclear Bank S. A./N. V., as operator of the Euroclear system (Euroclear) and Clearstream Banking, socit anonyme (Clearstream Luxembourg). It is expected that delivery of the Securities will be made through Clearstream Frankfurt against
payment therefor in immediately available funds, on or about the Issue Date. The temporary global security will be
exchangeable for a permanent global security in bearer form upon certification as to non-US beneficial ownership.
Application has been made to the Irish Financial Services Regulatory Authority, as competent authority under the Prospectus Directive (as defined herein), for this Prospectus to be approved. Application has been made to the Irish Stock
Exchange for the Securities to be admitted to the Official List and trading on its regulated market. Further, application will
be made to list the Securities on the market of the Luxembourg Stock Exchange appearing on the list of regulated markets issued by the E. C. (the Luxembourg Stock Exchange).
Sole Bookrunner and Structuring Advisor
BNP PARIBAS
The date of this Prospectus is 27 September 2005. This Prospectus constitutes a prospectus pursuant to, and is in compliance with the requirement of, the Prospectus Directive.
Responsibility Statement
The Bank accepts responsibility for the information contained in this Prospectus (the Prospectus) and
hereby declares that, having taken all reasonable care to ensure that such is the case, the information
contained in this Prospectus is, to the best of its knowledge, in accordance with the facts and does
not omit anything likely to affect its import. The Issuer accepts responsibility for the information in
this Prospectus about itself and the description of the Transaction (as defined in “Summary”) and to
the best of its knowledge the information is in accordance with the facts and does not omit anything
likely to affect the import of such information. The Issuer does not accept responsibility for any other
information contained in this Prospectus.
Notice
No person is authorised to give any information or to make any representations other than those
contained in this Prospectus and, if given or made, such information or representations must not be
relied upon as having been authorised by or on behalf of the Issuer, the Bank or BNP Paribas. Neither
the delivery of this Prospectus nor any sale made hereunder shall, under any circumstances, create
any implication that there has been no change in the affairs of the Issuer or the Bank or any of their
respective affiliates since the date of this Prospectus, or that the information herein is correct at any
time since its date.
An investment in the Securities is suitable only for financially sophisticated investors who are capable of fully evaluating the risks involved in making such investments and who have an asset base
sufficiently substantial as to enable them to sustain any loss that they might suffer as a result of making such investments.
Prospective investors should inform themselves as to the legal requirements and tax consequences
within the countries of their residence and domicile for the acquisition, holding or disposal of Securities and any foreign exchange restrictions that might be relevant to them. This Prospectus does not
constitute an offer of, or an invitation by or on behalf of, the Issuer, the partners of the Issuer, the Bank
or BNP Paribas to subscribe for or to purchase any of the Securities.
Prospective investors should satisfy themselves that they understand all of the risks associated with
making investments in the Securities. If a prospective investor is in any doubt whatsoever as to the
risks involved in investing in the Securities, he should consult professional advisers.
This Prospectus is not intended to provide the basis of any credit or other evaluation and should not
be considered as a recommendation by the Issuer, the partners of the Issuer, the Bank or BNP Paribas
that any recipient of this Prospectus should purchase any of the Securities. Each investor contemplating purchasing Securities should make his own independent investigation of the financial condition
and affairs, and his own appraisal of the creditworthiness, of the Issuer and the Bank.
The offer, sale and delivery of the Securities and the distribution of this Prospectus in certain jurisdictions is restricted by law. Persons into whose possession this Prospectus comes are required by the
Issuer, the Bank and BNP Paribas to inform themselves about and to observe any such restrictions. In
particular, the Securities have not been and will not be registered under the United States Securities
Act of 1933, as amended (the Securities Act) and are subject to U. S. tax law requirements. Subject to
certain limited exceptions, the Securities may not be offered, sold or delivered within the United
States or to U. S. persons.
The Jersey Financial Services Commission (the Commission) has given and has not withdrawn its
consent under Article 10 of the Control of Borrowing (Jersey) Order 1958 to the creation by the Issuer
of the limited partnership interests in the Issuer. The Commission is protected by the Control of Borrowing (Jersey) Law 1947, as amended, against liability arising from the discharge of its functions
under that Law.
Nothing in this Prospectus or anything communicated to holders of, or investors in, the Securities (or
any such potential security holders or investors) is intended to constitute, or should be construed as,
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advice on the merits of the purchase of, or subscription for, the Securities or the exercise of any rights
attached thereto for the purposes of the Financial Services (Jersey) Law 1998, as amended.
It should be noted that the Securities do not represent partnership interests in the Issuer.
IN CONNECTION WITH THE ISSUE OF THE SECURITIES, BNP PARIBAS AS STABILISING MANAGER
OR PERSONS ACTING ON ITS BEHALF MAY OVER-ALLOT SECURITIES (PROVIDED THAT IN THE
CASE OF THE SECURITIES TO BE ADMITTED TO TRADING ON THE IRISH STOCK EXCHANGE AND/
OR THE LUXEMBOURG STOCK EXCHANGE THE AGGREGATE PRINCIPAL AMOUNT OF THE
SECURITIES ALLOTTED DOES NOT EXCEED 105 % OF THE AGGREGATE PRINCIPAL AMOUNT OF
THE SECURITIES) OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE
OF THE SECURITIES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, THERE IS NO ASSURANCE THAT BNP PARIBAS AS STABILISING MANAGER (OR ANY PERSON ACTING ON ITS BEHALF) WILL UNDERTAKE ANY STABILISATION ACTION. ANY STABILISATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE
OF THE TERMS OF THE OFFER OF THE SECURITIES IS MADE AND, IF BEGUN, MAY BE ENDED AT
ANY TIME, BUT IT MUST END NO LATER THAN THE EARLIER OF 30 CALENDAR DAYS AFTER THE
DATE OF THE RECEIPT OF THE PROCEEDS OF THE ISSUE BY THE ISSUER AND 60 CALENDAR DAYS
AFTER THE DATE OF THE ALLOTMENT OF THE SECURITIES.
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FORWARD-LOOKING STATEMENTS
In addition to historical information, this Prospectus includes forward-looking statements. These
statements relate to IKB’s future prospects, developments and business strategies. They are based
on analyses of forecasts of future results and estimates of amounts not yet determinable or foreseeable. These forward-looking statements are identified by the use of terms and phrases such as
“anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”,
and similar terms and phrases, including references to assumptions. These statements are contained
in particular in the sections entitled “Summary”, “Risk Factors”, “Business” and other sections of this
Prospectus.
These forward-looking statements involve risks, uncertainties and other factors that may cause the
actual future results, performance and achievements to be materially different from those suggested
or described in this Prospectus. Many of the factors that will determine these results, performance
and achievements are beyond IKB’s control. Such factors include, among others, uncertainties in respect of the overall economic development, loan defaults, court proceedings or other proceedings
proceedings, maintenance of appropriate refinancing conditions and generally the economic and
business framework of the markets relevant for IKB’s business.
The risks described above and in the section entitled “Risk Factors” are not comprehensive. New
risks, uncertainties and other factors may emerge from time to time and it is not possible for IKB to
predict all such risk factors, to assess the impact of all such risk factors on its business or the extent to
which any factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements. Given these risks and uncertainties, the investor should
not place undue reliance on forward-looking statements as a prediction or guarantee of actual results
or events.
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PRESENTATION OF FINANCIAL INFORMATION
IKB’s unconsolidated and consolidated financial statements have been prepared in accordance with
the German Commercial Code (HGB) and generally accepted accounting rules thereunder (German
GAAP). All of the financial information presented in this Prospectus and relating to IKB is derived
from IKB’s audited unconsolidated and consolidated financial statements as of and for the fiscal
years ended 31 March 2004 and 2005 including the notes thereto and should be read in conjunction
with the audited unconsolidated and consolidated financial statements as of and for the fiscal years
ended 31 March 2003 and the auditors’ reports thereon incorporated herein. In accordance with the
German Commercial Code, IKB’s subsidiaries are consolidated, except as otherwise stated herein.
For the non-consolidated subsidiaries the dividends received therefrom are reflected in IKB’s audited
unconsolidated financial statements.
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TABLE OF CONTENTS
CLAUSE
PAGE
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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PRESENTATION OF FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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SELECTED FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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CAPITALISATION, REGULATORY CAPITAL, BALANCE SHEET PROFITS AND NET PROFITS . . . .
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TERMS AND CONDITIONS OF THE SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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TERMS AND CONDITIONS OF THE CUMULATIVE PROFIT PARTICIPATION SECURITIES . . . . . . .
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TERMS AND CONDITIONS OF THE LOAN AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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DESCRIPTION OF THE CONTRIBUTION AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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DESCRIPTION OF THE FIDUCIARY ASSIGNMENT AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . .
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GENERAL INFORMATION ON THE ISSUER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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IKB GROUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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REGULATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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SUBSCRIPTION AND SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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FINANCIAL STATEMENTS OF IKB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-1
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SUMMARY
The following constitutes a summary (the Summary) of certain essential characteristics of the transaction underlying the issuance and offering of the Securities, the terms of the Securities, the terms of
the Cumulative Profit Participation Securities and certain other material agreements. In drawing up
this Prospectus, including this Summary, the Issuer has relied on certain exemptions available for
issuers of securities with denominations of not less than 5 50,000. Accordingly, this Summary has
not been drawn up in accordance with the requirements of Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, Commission Regulation EC 809/2004 of 29 April 2004
and any relevant national legislation adopted to implement the Directive and the Regulation.
This Summary should be read as an introduction to this Prospectus. It does not purport to be complete and is taken from, and is qualified in its entirety by, the remainder of this Prospectus. Any decision by an investor to invest in the Securities should be based on consideration of this Prospectus as
a whole.
Introductory Summary of the Transaction
The following paragraphs contain a brief overview of the most significant features of the transaction
consisting of the issuance of the Securities by the Issuer and payment of the proceeds therefrom to
IKB in consideration for the purchase from IKB of the Cumulative Profit Participation Securities issued
by IKB (the “Transaction”).
The Issuer proposes to issue 5 150,000,000 Dated Upper Tier 2 Securities. With the proceeds of the
issue of the Securities, the Issuer will acquire the Cumulative Profit Participation Securities (Kumulative Genussscheine) issued by IKB in the aggregate amount of 5 150,000,000. For this purpose, the
Issuer will pay the purchase price for the Cumulative Profit Participation Securities of 5 150,000,000
to IKB in cash.
In return, the Issuer, as holder of the Cumulative Profit Participation Securities, will earn profit distributions (Profit Distributions) calculated annually on the basis of the nominal amount of the Cumulative Profit Participation Securities for each fiscal year of IKB and payable annually in arrear (Profit Distribution Payments). Profit Distributions will only accrue if and to the extent that there is a sufficient
balance sheet profit (Bilanzgewinn) recorded on IKB’s annual unconsolidated balance sheet in accordance with German GAAP for the relevant fiscal year (Balance Sheet Profit). Under German
GAAP, the Balance Sheet Profit is derived from the net income for the year (Jahresberschuss)
adjusted for profits/losses carried over from the previous fiscal years as well as transfers from and
allocations to capital reserves and retained income (Kapital- und Gewinnrcklagen). If the Balance
Sheet Profits of IKB do not suffice for the accrual of full Profit Distributions, Profit Distributions may
accrue in part or no Profit Distributions may accrue at all for the relevant fiscal year of IKB. Such
unpaid Profit Distributions will constitute Arrears of Profit Distributions. Arrears of Profit Distributions will become payable on the due date for the following Profit Distributions Payment, provided
that sufficient Balance Sheet Profits have been recorded by IKB for the fiscal year to which the Profit
Distribution Payment relates to pay both Arrears of Profit Distributions and the Profit Distribution
Payment falling due on such date. If the relevant Balance Sheet Profits are insufficient, IKB will first
pay any Arrears of Profit Distributions before making any Profit Distribution Payments. Any obligation by IKB to make Profit Distribution Payments and payments of Arrears of Profit Distributions will
be extinguished to the extent that such payments have not been made by IKB until the repayment
date of the Cumulative Profit Participation Securities (the Repayment Date) (scheduled to be 3 August
2015) as a result of insufficient Balance Sheet Profits.
In addition, the Issuer, as holder of the Cumulative Profit Participation Securities, shares in a Balance
Sheet Deficit (as defined in the Terms and Conditions of the Cumulative Profit Participation Securities) in the proportion which the book value of the Cumulative Profit Participation Securities bears
in relation to the aggregate book value of all of IKB’s capital instruments sharing in a Balance Sheet
Deficit. In such case, the book value of the Cumulative Profit Participation Securities will be reduced
by the amount of its pro rata share in the relevant Balance Sheet Deficit (Reduction). After a Reduction, annual net profits (Jahresberschsse) of IKB accruing prior to the Repayment Date and avail-
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able after allocations to IKB’s statutory reserve (gesetzliche Rcklage) will be used to write up the
book value of the Cumulative Profit Participation Securities to their initial amount of 5 150,000,000.
Profit Distributions may only be paid after a full write-up of the Cumulative Profit Participation Securities’ book value to 5 150,000,000. If the book value of the Cumulative Profit Participation Securities
at the Repayment Date is less than their initial nominal value, redemption will be made on the Repayment Date at the lesser book value. The holders of the Cumulative Profit Participation Securities will
be entitled to additional redemption payments up to an amount corresponding to the difference between the redemption payment made on the Repayment Date and the initial nominal value of the
Cumulative Profit Participation Securities if the requirements for a further write-up of the book value
of the Cumulative Profit Participation Securities up to their initial amount of 5 150,000,000 are met in
any fiscal year of the Bank following, and up to the fourth anniversary of, the end of the term of the
Cumulative Profit Participation Securities. However, any further claims for redemption of the Cumulative Profit Participation Securities will be extinguished with regard to any Reduction still existing at
the end of the fiscal year of the Bank ending on the fourth anniversary of the end of the term of the
Cumulative Profit Participation Securities.
IKB’s payment obligations under the Cumulative Profit Participation Securities (i) are subordinated in
liquidation and insolvency to the claims of all existing and future creditors of IKB (but excluding the
creditors referred to under (ii) and (iii) below), (ii) rank at least pari passu with all claims for the repayment of, and distributions on, all existing and future profit participation rights and profit participation
securities (Genussrechte und Genussscheine) in IKB in accordance with § 10(5) of the German Banking Act (KWG) and long term subordinated liabilities (lngerfristige nachrangige Verbindlichkeiten) of
IKB in accordance with § 10(5a) KWG and (iii) rank senior to all claims for the repayment of, and distributions on, all existing and future hybrid tier 1 capital instruments such as silent participations
(Stille Beteiligungen) in accordance with § 10(4) of the German Banking Act (KWG) and all claims of
shareholders of IKB in connection with their respective shareholdings in IKB.
Profit Distribution Payments and write-ups of the book value of the Cumulative Profit Participation
Securities after a Reduction are subject to German Withholding Tax (Kapitalertragssteuer) (German
Withholding Tax) plus solidarity surcharge (Solidarittszuschlag) to be withheld and transferred by
IKB to the German tax authorities. To the extent such Profit Distribution Payments and to the extent
such write-ups are attributable to the Issuer’s limited partner as taxable profit under German tax laws,
such withholdings will be counted as a prepayment towards the German income tax owed by the
Issuer’s limited partner. The Issuer’s limited partner will be entitled to refund claims against the German tax authorities (Tax Refund Claims) in amounts by which the prepayments in the form of withholdings made by IKB exceed its actual German income tax liability. The Issuer’s limited partner has
undertaken in a separate contribution agreement with the Issuer’s general partner dated 27 September 2005 (the Contribution Agreement) to contribute to the Issuer amounts that it receives from the
German tax authorities on account of its Tax Refund Claims as and when it receives such amounts
(each such payment a Contribution Payment). As Tax Refund Claims only become due after the tax
assessment for each year, the Issuer, on 27 September 2005, has entered into a loan agreement (the
Loan Agreement) with IKB (in that capacity, the Lender). Under the Loan Agreement, the Issuer is paid
loan advances (each an Advance) in order to fund its obligations to pay interest on the Securities and
to replenish the book value of the Cumulative Profit Participation Securities after a Reduction. The
Issuer expects to repay the Advances with the monies that it receives as Contribution Payments.
Payment of principal and interest under the Securities is conditional upon receipt by the Issuer of (i)
Profit Distribution Payments and/or the payment by IKB of the redemption amount under the Cumulative Profit Participation Securities (the Repayment Amount) from IKB, (ii) Advances from the Lender
under the Loan Agreement and (iii) payments from IKB under the Indemnity Agreement. Hence, payments under the Securities are linked to Profit Distribution Payments and payment of the Repayment
Amount which, in turn, are each dependent on IKB’s financial performance. The Issuer’s obligation to
make Coupon Payments and redemption payments (Redemption Payments) under the Securities is,
therefore, dependent on the financial condition and results of operations of IKB.
Pursuant to the Fiduciary Assignment Agreement between the Issuer, the Issuer’s partners, IKB, the
Lender and the Security Trustee, the Issuer has assigned and transferred to the Security Trustee its
ownership of the global certificate representing the Cumulative Profit Participation Securities and
has assigned all of its claims against the Lender under the Loan Agreement and all of its claims
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against IKB for indemnity in respect of withholding tax under the laws of Jersey, if any, to the Security
Trustee for the benefit of the Securityholders.
IKB intends to treat the proceeds that it receives upon issuance of the Cumulative Profit Participation
Securities as upper tier two capital for the purposes of determining its compliance with consolidated
and unconsolidated regulatory capital requirements. For more information on the regulatory capital
requirements applicable to IKB and its consolidated subsidiaries (together the IKB Group), see “Regulation”.
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Summary in respect of the Risk Factors
Summary in respect of the Risks associated with IKB’s business
IKB’ business is exposed to various risks such as counterparty and credit risk, market and liquidity
risk, country risk, operational risk (including legal risks and IT risks) and general business risk. In addition, IKB is also subject to strategic and reputational risk.
Summary in respect of the Risks associated with the Securities
An investment in the Securities involves certain risks associated with the characteristics of the Securities which could lead to substantial losses the Securityholders would have to bear in the event of
having to sell their Securities or with regard to receiving interest payments and repayment of principal. Those risks include that:
•
Interest payments on the Securities depend on IKB’s profits and will not accrue (i) if and to the
extent such accrual would create or increase a Balance Sheet Deficit (Bilanzverlust) in IKB’s unconsolidated accounts in accordance with German GAAP or (ii) if the book value of the Cumulative
Profit Participation Securities is below its nominal amount due to a loss sharing in the past.
Arrears of interest resulting therefrom may be payable in subsequent years, however, any arrears
of interest not payable on the Repayment Date will be extinguished.
•
Repayment of principal of the Securities is dependent on the book value of the Cumulative Profit
Participation Securities as shown in IKB’s unconsolidated balance sheet relating to the fiscal years
of IKB immediately preceding (i) the Repayment Date and (ii) any Additional Repayment Date
thereafter. In case the book value of the Cumulative Profit Participation Securities determined on
all of these dates is lower than their nominal amount, the Securityholders will incur a corresponding loss on their investment.
•
Any payment under the Securities is conditional upon the actual receipt by the Issuer of corresponding amounts from IKB under the Cumulative Profit Participation Securities, the Indemnity
Agreement (if applicable) and the Loan Agreement.
•
The Securities may be subject to early termination prior to their scheduled maturity. In addition to
any termination rights expressly stated in the terms and conditions of the Securities, the Cumulative Profit Participation Securities and the agreements relating to the issue of the Securities and
the Cumulative Profit Participation Securities, there may be extraordinary termination rights
under German law which cannot contractually be excluded.
•
The Securities are (save for the security created for their benefit pursuant to the Fiduciary Assignment Agreement) unsecured obligations of the Issuer.
•
Claims under the Cumulative Profit Participation Securities are subordinated. In the event of a
liquidation of IKB, claims of the Securityholders would be equal to the liquidation proceeds
obtained by the Issuer for the Cumulative Profit Participation Securities which would rank junior
to the claims of all unsubordinated creditors of IKB.
•
There is no restriction on the amount of debt which the Issuer or IKB may issue.
•
There is no assurance that the agreements between IKB and the Issuer are on terms as favourable
to the Issuer as those that could have been obtained from parties unaffiliated with IKB.
•
Prior to their issue, there has been no public market for the Securities and there can be no assurance that an active public market for the Securities will develop.
Summary in respect of the Risks associated with the Issuer
The Issuer is a special purpose entity and is not affiliated with IKB. The Issuer will not have any assets
other than the claims under the Cumulative Profit Participation Securities, the Loan Agreement, the
Indemnity Agreement and the Contribution Agreement. There can be no assurance that the Issuer
will receive sufficient funds to satisfy the Securityholders’ payment claims under the Securities. In
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particular, the Fiduciary Assignment Agreement between the Issuer, the Issuer’s partners, IKB, the
Lender and the Security Trustee does not assure the due payment of the above claims.
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Summary of the Offering
The following overview describes the most important elements of the offering and the Transaction. It
is necessarily incomplete and investors are urged to read carefully the entire summary and the full
text of the Prospectus for a more precise description of the offered Securities.
Securities Offered
5 150,000,000 Dated Upper Tier 2 Securities; see (“-Summary of the Terms of
the Securities”).
Issuer
ProPart Funding Limited Partnership, a limited partnership established under
the laws of Jersey on 15 September 2005
Partners in the Issuer The Issuer’s general partner (with a 0.1 per cent. interest in the Issuer’s equity)
is ProPart Funding 2005-1 Limited, a limited liability company incorporated
under the laws of Jersey (the Issuer General Partner). The sole beneficial
shareholder of the Issuer General Partner is Mourant & Co. Trustees Limited as
trustee of the ProPart Funding 2005-1 Charitable Trust. The Issuer’s limited
partner (with 99.9 per cent. interest in the Issuer’s equity) is ProPart Funding
2005-1 GmbH, Frankfurt am Main, Germany, a limited liability company
(Gesellschaft mit beschrnkter Haftung) incorporated under the laws of Germany (the Issuer Limited Partner). The sole beneficial shareholder of the Issuer
Limited Partner is Mourant & Co. Trustees Limited as trustee of the ProPart
Funding 2005-1 GmbH Charitable Trust.
Limited Purpose
of Issuer
Apart from purchasing the Cumulative Profit Participation Securities (see
“– Summary of the Cumulative Profit Participation Securities”), entering into
other agreements ancillary to the Transaction and the issuance of the Securities, the Issuer General Partner has undertaken to the Issuer Limited Partner
that the Issuer will not create additional liabilities, except for those liabilities
which are absolutely necessary to keep its business in operation. See “General
Information on the Issuer”.
The Bank
IKB Deutsche Industriebank AG, Dsseldorf and Berlin, a bank incorporated as
a stock corporation (Aktiengesellschaft) under German law.
Cumulative Profit
Participation
Securities
With the proceeds of the issue of the Securities, the Issuer will purchase the
Cumulative Profit Participation Securities issued by IKB in the aggregate nominal amount of 5 150,000,000; see “– Summary of the Terms of the Cumulative
Profit Participation Securities”.
Contribution
Agreement
In the Contribution Agreement, entered into between the Issuer Limited Partner and the Issuer General Partner, the Issuer Limited Partner has undertaken
for the benefit of the Issuer to contribute to the Issuer amounts that it receives
from the German tax authorities on account of its Tax Refund Claims. See
“Description of the Contribution Agreement”.
Loan Agreement
Under the Loan Agreement the Lender will pay to the Issuer Advances corresponding to the relevant withholdings on account of German Withholding Tax
on the Profit Distribution Payments, payments on Arrears of Profit Distributions and on replenishments of the Cumulative Profit Participation Securities
after a Reduction. The Issuer will use the Advances to fund its obligations to
make the Coupon Payments under the Securities and to complete the replenishment of the Cumulative Profit Participation Securities after a Reduction.
See “– Summary of the Terms of the Loan Agreement”.
Indemnity
Agreement
Pursuant to the Indemnity Agreement, the Bank is obliged to make payments
to the Issuer in respect of withholding tax, if any, levied in Jersey in relation to
payments under the Securities. The Issuer will use the payments received
under the Indemnity Agreement to fund its obligations in respect of Additional
Amounts, if any, payable under the Securities.
12
Fiduciary
Assignment
Agreement
Pursuant to the Fiduciary Assignment Agreement, the Issuer has assigned and
transferred to the Security Trustee, for the benefit of the Securityholders, its
ownership in the global certificate representing the Cumulative Profit Participation Securities as well as all present and future payment claims under the
Loan Agreement and the Indemnity Agreement. See “Description of the Fiduciary Assignment Agreement”.
Principal
Paying Agent
BNP Paribas Securities Services, Frankfurt am Main Branch
Irish Paying Agent
NCB Stockbrokers Ltd., Dublin
Irish Listing Agent
NCB Stockbrokers Ltd., Dublin
Luxembourg
Paying Agent
BNP Paribas Securities Services, Luxembourg Branch
Luxembourg
Listing Agent
BNP Paribas Securities Services, Luxembourg Branch
Security Trustee
BNP Paribas Trust Corporation UK Limited
Listing
Application has been made to the Irish Financial Services Regulatory Authority, as competent authority under the Prospectus Directive (as defined herein),
for this Prospectus to be approved. Application has been made to the Irish
Stock Exchange for the Securities to be admitted to the Official List and trading
on its regulated market. Further, application will be made to list the Securities
on the market of the Luxembourg Stock Exchange appearing on the list of
regulated markets issued by the E. C.
Securities Codes
ISIN: DE000A0GF758
WKN: A0GF75
Common Code: 023133172
13
Summary of the Terms of the Securities
The following summary refers to certain terms and conditions of the Securities. The summary does
not purport to be complete and is subject to, and qualified in its entirety by reference to, the terms
and conditions of the Securities which may be found under “Terms and Conditions of the Securities”.
Issuer
ProPart Funding Limited Partnership, a limited partnership established under
the laws of Jersey on 15 September 2005.
Nominal Amount
5 50,000 per Security.
Aggregate Nominal
Amount
5 150,000,000.
Issue Price
100 per cent. of nominal amount.
Form
The Securities will be initially represented by a temporary global security in
bearer form without coupons (the Temporary Global Security) which will be
exchangeable for a permanent global security in bearer form without coupons
(Permanent Global Security) upon certification as to non US beneficial ownership. Beneficial interests in the Temporary Global Security and the Permanent
Global Security will be exchangeable for definitive Securities in limited circumstances (as described in “Terms and Conditions of the Securities”), each in
bearer form.
Issue Date
29 September 2005.
Status
The Issuer’s obligations under the Securities constitute direct, unsubordinated
and (save for the security created for their benefit pursuant to the Fiduciary
Assignment Agreement) unsecured conditional obligations of the Issuer and
rank pari passu among themselves and at least pari passu with all unsubordinated and unsecured obligations of the Issuer, present or future, save for mandatory exceptions prescribed by statutory law.
Limited Recourse
Any payments under the Securities are limited to the amounts actually
received by the Issuer under the Cumulative Profit Participation Securities, the
Loan Agreement and the Indemnity Agreement.
Coupon Payments
Coupon Payments will be made at a rate of 3.768 per cent. per annum (with the
first Coupon Payment being 5 1,589.78 per Security) and are contingent on the
Issuer’s receipt of Profit Distribution Payments from IKB under the Cumulative
Profit Participation Securities (after deduction of German Withholding Tax)
(see “– Summary of the Terms of the Cumulative Profit Participation Securities
– Profit Distribution Payments and Dates”), Advances from the Lender under
the Loan Agreement (see “– Summary of the Terms of the Loan Agreement –
Loan Advances”) and payments from IKB under the Indemnity Agreement (see
“– Summary of the Offering – Indemnity Agreement”). If the Issuer is unable to
make a Coupon Payment in whole or in part on a due date therefor because the
Profit Distributions under the Cumulative Profit Participation Securities are
excluded in whole or in part (see “Summary of the Terms of the Cumulative
Profit Participation Securities – Profit Distributions Excluded”), the Issuer will
make up for such Coupon Payment if, when and to the extent it receives payments in respect of Arrears of Profit Distributions from IKB on or prior to the
Repayment Date (see “Summary of the Terms of the Cumulative Profit Participation Securities – Arrears of Profit Distributions”). The Issuer will be under no
obligation to make payments to Securityholders in excess of any Profit Distributions or Arrears of Profit Distributions actually received by it.
Interest Calculation
Method
Interest for a period of less than one year is calculated on the basis of the
actual number of days in such period divided by the actual number of days
(365 or 366) in the relevant interest year.
14
Coupon Payment
Dates
Coupon Payments under the Securities will be made on the dates on which
Profit Distribution Payments under the Cumulative Profit Participation Securities, if any, are paid to the Issuer. The due date for Profit Distribution Payments under the Cumulative Profit Participation Securities (“Cumulative Profit
Participation Securities Payment Dates”) is 3 August of each year, commencing
3 August 2006. Profit Distribution Payments and hence Coupon Payments may
be delayed if the adoption of IKB’s annual financial statements for the fiscal
year to which the Profit Distribution Payment relates is delayed (See “– Summary of the Terms of the Cumulative Profit Participation Securities – Profit Distribution Payments and Dates”).
Repayment Date and The Securities are scheduled for redemption on 3 August 2015. Redemption
Repayment Amount may be delayed if the adoption of IKB’s financial statements for the fiscal year
ended 31 March 2015 or the payment of the Redemption Amount payable by
IKB to the Issuer under the Cumulative Profit Participation Securities is delayed
for any other reason. In such event the Securities will be redeemed on the date
on which the Cumulative Profit Participation Securities are repaid. See “– Summary of the Terms of the Cumulative Profit Participation Securities – Repayment Date”.
The redemption amount will equal the Repayment Amount (subject to receipt
thereof by the Issuer) required to be paid by IKB under the Cumulative Profit
Participation Securities (see “– Summary of the Terms of the Cumulative Profit
Participation Securities – Repayment”).
Additional
Repayment
Amounts and Dates
Additional Redemption Amounts up to an amount corresponding to the difference between the Repayment Amount and the initial nominal value of the
Cumulative Profit Participation Securities will be payable if the requirements
for a further write-up of the Cumulative Profit Participation Securities’ book
value up to its initial amount of 5 150,000,000 are met in any fiscal year of the
Bank following, and up to the fourth anniversary of, the end of the term of the
Cumulative Profit Participation Securities. Additional Repayment Amounts, if
any, shall not bear interest.
Such Additional Redemption Amounts will be paid on 3 August of each year in
which an Additional Repayment Amount is payable. Such payment may be
delayed if the adoption of IKB’s financial statements for the fiscal year ended
31 March of such year in which an Additional Repayment Amount is payable
or the payment of the Additional Redemption Amount payable by IKB to the
Issuer under the Cumulative Profit Participation Securities is delayed for any
other reason.
Early Termination
and Repayment
If a Tax Event or a Gross-up Event (each as defined in “Terms and Conditions of
the Securities”) has occurred, the Issuer may call the Securities for redemption
at any time by giving not less than 30 days and not more than 60 days’ prior
notice.
Any such early termination shall not require a contemporaneous repayment of
the Cumulative Profit Participation Securities and payment of the Repayment
Amount thereunder but shall only be permissible if financing of the redemption of the Securities at their nominal amount plus any interest accrued
thereon has been secured through the issuance of similar debt securities or in
any other way.
Payment of
If the Issuer is required to withhold or deduct amounts payable under the
Additional Amounts Securities on account of tax, it will be under an obligation to gross up such
amounts payable so that the Securityholders receive the full amount that
would have been payable were no such withholding or deduction required.
The Issuer’s obligation to pay such Additional Amounts is subject to funds
15
being available to it for that purpose. The Issuer has entered into an indemnity
agreement under which the Bank is obliged to provide the Issuer with the
funds required to pay Additional Amounts. The Issuer’s ability to pay Additional Amounts will depend on receipt by the Issuer of amounts from IKB to
cover such Additional Amounts (see “Risk Factors – Coupon Payments on
Securities are conditional”).
Notices
All notices to the Securityholders will be given by the Issuer (i) by mail, fax or
electronically to Clearstream Frankfurt, Clearstream Luxembourg and Euroclear, (ii) so long as any of the Securities are listed on the Irish Stock Exchange
and the Irish Stock Exchange so requires, to the Company Announcement
Office of the Irish Stock Exchange through the Irish Paying Agent and (iii) so
long as any of the Securities are listed on the Luxembourg Stock Exchange
and the Luxembourg Stock Exchange so requires, by publication in a leading
newspaper having general circulation in Luxembourg (which is expected to be
the Tageblatt (Luxembourg)) or by publication on the website of the Luxembourg Stock Exchange (www.bourse.lu). The contents of the website of the
Luxembourg Stock Exchange do not form part of this Prospectus.
In accordance with its published rules and regulations, Clearstream Frankfurt
will notify the Securityholders accounts to which any Securities are credited of
any such notices received by it.
Governing Law
German.
Governing Language German.
Tax Consequences
16
For a discussion of the material Jersey and German tax consequences of purchasing, owning and disposing of the Securities, see “Taxation”.
Summary of the Terms of the Cumulative Profit Participation Securities
The following summary refers to certain provisions of the Cumulative Profit Participation Securities.
The summary does not purport to be complete and is subject to, and qualified in its entirety by reference to, the terms and conditions of the Cumulative Profit Participation Securities which may be
found under “Terms and Conditions of the Cumulative Profit Participation Securities”.
Issuer
IKB Deutsche Industriebank AG, Dsseldorf and Berlin, a bank incorporated as
a stock corporation (Aktiengesellschaft) under German law.
Nominal Amount
5 50,000 per Cumulative Profit Participation Right.
Aggregate Nominal
Amount
5 150,000,000.
Issue Price
100 per cent. of nominal amount.
Form
The Cumulative Profit Participation Securities will be represented by a global
security in bearer form without coupons.
Issue Date
29 September 2005.
Status
The Bank’s obligations under the Cumulative Profit Participation Securities (i) are
subordinated to the claims of all existing and future creditors of the Bank (excluding the creditors referred to under (ii) and (iii) below), (ii) rank at least pari passu
(by percentage of the amount payable) with all claims for distributions under or
the repayment of capital contributions made with respect to profit participation
rights in the form of Genussrechte or Genussscheine, other upper tier 2 capital
instruments, if any, and any other subordinated debt in accordance with § 10(5)
and (5a) KWG), and (iii) rank senior to all claims for the repayment of, and distributions on, all existing and future subordinated debt in accordance with § 10(4)
KWG and all claims of shareholders of the Bank in connection with their interests
in the Bank, in each case as already arisen or arising in the future.
Sole Investor
ProPart Funding Limited Partnership, a limited partnership established under
the laws of Jersey on 15 September 2005.
Profit Periods
Profit Distributions on the Cumulative Profit Participation Securities accrue for
profit periods (Profit Periods) which run from (and including) 1 April of one
calendar year to (and including) 31 March of the following calendar year. The
first Profit Period (First Profit Period) commences on (and includes) the Issue
Date and runs to (and includes) 31 March 2006.
Profit Distribution
Subject to Profit Distributions being excluded in whole or in part (see “– Profit
Payments and Dates Distributions Excluded”), Profit Distributions shall be payable annually in
arrear on the later of (i) 3 August following the end of the relevant Profit Period
or, if that is not a Business Day, the next Business Day, or (ii) if on 2 August
following the end of the relevant Profit Period the Bank’s annual financial statements for the fiscal year to which the Profit Period relates have not been
adopted, the Business Day following adoption thereof.
Profit Distribution
Subject to Profit Distributions being excluded in whole or in part (see “– Profit
Rate for Profit Periods Distributions Excluded”), Profit Distributions for Profit Periods other than the
other than the First First Profit Period shall accrue on the Principal Amount of the Cumulative Profit
Profit Period
Participation Securities at a rate of 3.8640 per cent. per annum.
Interest Calculation
Method
Interest for a period of less than one year is calculated on the basis of the
actual number of days in such period divided by the actual number of days
(365 or 366) in the relevant interest year.
17
Profit Distribution
Payment for the
First Profit Period
Subject to Profit Distribution being excluded in whole or in part (see “Profit
Distributions Excluded”), the Profit Distribution for the First Profit Period shall
amount to an aggregate of 5 4,975,950 (5 1,658.65 per Security). The Profit Distribution Payment for the First Profit Period shall be made on the later of
(i) 3 August 2006 or, if that is not a Business Day, the next Business Day, or
(ii) if on 2 August 2006 the Bank’s annual financial statements for the fiscal
year ended 31 March 2006 have not been adopted, the Business Day following
adoption thereof.
Profit Distributions
Excluded
Profit Distributions for any Profit Period (including the First Profit Period) will
be excluded:
(i) if and to the extent that payment of such Profit Distribution would, also taking into account the payment of Arrears of Profit Distributions (see “Terms
and Conditions of the Cumulative Profit Participation Securities”), lead to or
increase a Balance Sheet Deficit (see “– Balance Sheet Deficit”) for the fiscal
year of the Bank to which the relevant Profit Period relates; or
(ii) if the book value of the Cumulative Profit Participation Securities has been
reduced due to the absorption of Balance Sheet Deficits of the Bank and has
not yet been fully replenished by profits of the Bank from the following
years.
Balance Sheet Deficit A Balance Sheet Deficit will exist if the annual unconsolidated balance sheet of
the Bank, as audited by an auditing firm recognized by the Federal Financial
Services Supervisory Authority (Bundesanstalt fr Finanzdienstleistungsaufsicht – BaFin), does not show a Balance Sheet Profit for the fiscal year to which
the relevant Profit Distribution relates. The Balance Sheet Profit is calculated
based on the annual unconsolidated net income or loss for the year, plus any
profits carried forward from the previous year, minus any loss carried forward
from the previous year, plus withdrawals made from the capital reserves and
retained income, minus allocations to retained income, all in compliance, and
determined in accordance, with accounting principles generally accepted in
Germany (including the German Commercial Code (Handelsgesetzbuch)) and
other applicable German law then in effect.
Arrears of Profit
Distributions
Profit Distributions not paid as a result of insufficient Balance Sheet Profits or a
Reduction will constitute Arrears of Profit Distributions. Arrears of Profit Distributions will be paid out of Balance Sheet Profits of subsequent Profit Periods
prior to the Repayment Date. The payment of Arrears of Profit Distributions
will be made on the due date for the Profit Distribution Payment in respect of
the respective next Profit Period for which a Balance Sheet Profit is available.
Should such Balance Sheet Profit be insufficient for the payment of the Arrears
of Profit Distribution and the Profit Distribution for the respective last Profit
Period, payment will first be made on the Arrears of Profit Distributions before
any payment is made in respect of such Profit Distribution for the respective
last Profit Period. Arrears of Profit Distributions will not themselves bear interest.
The Bank’s obligation to pay Arrears of Profit Distributions and the Profit Distribution for the last Profit Period will be extinguished on the Repayment Date to
the extent not paid on such date due to the restrictions set forth under “– Profit
Distributions Excluded”.
Loss Participation
and Reduction
18
If the Bank incurs a Balance Sheet Deficit in any fiscal year, the Cumulative
Profit Participation Securities share in such a Balance Sheet Deficit. The Cumulative Profit Participation Securities share in a Balance Sheet Deficit in the proportion which the book value of the Cumulative Profit Participation Securities
bears to the aggregate book value of all components of the Bank’s liable capital
(Eigenkapital) sharing in the Bank’s Balance Sheet Deficit. To the extent the
Cumulative Profit Participation Securities share in a Balance Sheet Deficit, the
Repayment Amount will be reduced.
Replenishment of
Cumulative Profit
Participation
Securities
After a Reduction, the book value of the Cumulative Profit Participation Securities will, in each fiscal year of the Bank following such Reduction, be replenished up to the full Nominal Amount, but only if and to the extent such replenishment would not cause or increase a Net Loss. A Net Loss will exist if the
annual unconsolidated income statement of the Bank in accordance with the
German Commercial Code, as audited by an auditing firm recognised by the
BaFin, does not show a net profit for the fiscal year to which the relevant Profit
Distribution relates.
The replenishment after a Reduction ranks senior to the replenishment of the
share capital, allocations to reserves (with the exception of the statutory
reserve) and, according to the terms of the existing silent partnership interests
issued by IKB in 2002 and 2004, to the replenishment of capital provided thereunder. In relation to other capital providers in accordance with § 10(4) KWG
(silent participations) the replenishment of the book value of the Cumulative
Profit Participation Securities will rank senior to such instruments if the terms
thereof provide therefor. In relation to other capital providers in accordance
with § 10(5) KWG (profit participation rights in the form of Genussrechte and
Genussscheine), the replenishment will be effected in the same priority and in
the same proportion as the sharing of losses.
Principal Payments
No payments of principal will be made by the Bank other than on redemption
of the Cumulative Profit Participation Securities and, where applicable, on any
Additional Repayment Date (see “– Scheduled Redemption” and “– Additional
Repayment Amounts and Dates”). At such time the nominal amount of the
Cumulative Profit Participation Securities, taking into account Reductions, if
any, will be repaid (see “– Repayment Amount”).
Scheduled
Redemption
The term of the Cumulative Profit Participation Securities will end on 31 March
2015 and the Repayment Amount (see “– Repayment Amount”) will fall due on
the Repayment Date. The Repayment Date is the later of (i) 3 August 2015 or, if
that is not a Business Day, the next Business Day, or (ii) if on 2 August 2015 the
Bank’s annual financial statements for the fiscal year ended 31 March 2015
have not been adopted, the Business Day following adoption thereof.
Repayment Amount On the Repayment Date, IKB will pay the Repayment Amount to the holder of the
Cumulative Profit Participation Securities. The Repayment Amount corresponds
to the nominal amount of the Cumulative Profit Participation Securities or, if any
Reductions have occurred and have not been replenished before the Repayment
Date, the book value of the Cumulative Profit Participation Securities.
Additional
Repayment
Amounts and Dates
Additional Redemption Amounts up to an amount corresponding to the difference between the Repayment Amount and the initial nominal value of the
Cumulative Profit Participation Securities will be payable if the requirements
for a further write-up of the Cumulative Profit Participation Securities’ book
value up to its initial amount of 5 150,000,000 are met in any fiscal year of the
Bank following, and up to the fourth anniversary of, the end of the term of the
Cumulative Profit Participation Securities. Additional Repayment Amounts, if
any, shall not bear interest.
Such Additional Redemption Amounts will be paid on 3 August of each year in
which an Additional Repayment Amount is payable. Such payment may be
delayed if the adoption of IKB’s financial statements for the fiscal year ended
31 March of such year in which an Additional Repayment Amount is payable
or the payment of the Additional Redemption Amount payable by IKB to the
19
Issuer under the Cumulative Profit Participation Securities is delayed for any
other reason.
Early Redemption
The Bank is entitled to repay the Cumulative Profit Participation Securities
early if a German Tax Event, a Jersey Tax Event, a Tax Refund Event or a
Gross-up Event occurs (see “Terms and Conditions of the Cumulative Profit
Participation Securities”). Any premature repayment of the Cumulative Profit
Participation Securities must be repaid to the Bank irrespective of any agreement to the contrary, unless (i) the capital has been replaced by other capital
for banking regulatory purposes of at least equal quality or (ii) the BaFin agrees
to the premature repayment.
Enforcement Rights
The Cumulative Profit Participation Securities constitute a legal relationship
between IKB and the holder thereof, the Issuer. Therefore, in general, only the
Issuer (or its assignee) can enforce rights under the Cumulative Profit Participation Securities against IKB. The Issuer has no duty to bring an action against
IKB in order to enforce its rights under the Cumulative Profit Participation
Securities.
Compliance with
German Banking
Regulations
Under applicable German banking regulations, any repayment of the Cumulative Profit Participation Securities made in violation of their terms must be
repaid to IKB.
Place of Performance Dsseldorf, Germany
and Place of
Jurisdiction
Governing Law
German
Governing Language German
20
Summary of the Terms of the Loan Agreement
The following summary refers to certain provisions of the Loan Agreement. The summary does not
purport to be complete and is subject to, and qualified in its entirety by reference to, the provisions of
the Loan Agreement which may be found under “Terms and Conditions of the Loan Agreement”.
Parties
IKB as Lender.
ProPart Funding Limited Partnership, Jersey, Channel Islands, a limited partnership established under the laws of Jersey as Borrower.
Loan Advances
On each date on which a Profit Distribution Payment becomes due, the Lender
is required to pay an Advance to the Borrower in an amount corresponding to
the withholding made by IKB on account of German Withholding Tax on the
relevant Profit Distribution Payment.
On each date on which the book value of the Cumulative Profit Participation
Securities is replenished after a Reduction, the Lender is required to pay an
Advance to the Borrower in an amount corresponding to the withholding
made by IKB on account of German Withholding Tax on the relevant replenishment.
Repayment
The Borrower is required to repay outstanding Advances equal to the full
amount of any Contribution Payments that it receives from the Issuer Limited
Partner under the Contribution Agreement promptly upon receipt of the relevant Contribution Payment (each such payment a Repayment).
Interest
The Borrower must pay interest to the Lender on each date that it makes a
Repayment. The interest rate will be 4 per cent. per annum on any outstanding
Advances.
Commitment Fee
The Borrower must pay to the Lender a commitment fee at a rate of 25 basis
points on any undrawn advances provided that, exclusively for the calculation
of such commitment fee, the amount of undrawn advances shall not exceed
5 1,540,000.
Governing Law
German.
Governing Language German.
21
SELECTED FINANCIAL INFORMATION
IKB
The following table presents selected unconsolidated financial information of IKB pursuant to German GAAP as of and for the last three fiscal years ended 31 March 2005, 2004 and 2003, respectively:
Selected Income Statement Figures
2004/2005
2003/2004
2002/2003
in 5 m
in 5 m
in 5 m
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net commission income . . . . . . . . . . . . . . . . . . . . . . . . .
Net income from financial operations . . . . . . . . . . . . . .
Risk provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before taxes and distributions in respect of
silent participations and extraordinary result . . . . .
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . .
425.0
106.3
– 0.4
– 171.9
431.0
101.2
3.2
– 185.3
422.1
81.8
0.8
– 153.4
175.6
125.1
161.9
99.0
183.0
110.4
Return on equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.0 %
14.2 %
16.7 %
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.4 %
34.8 %
33.9 %
Selected Balance Sheet Figures
2004/2005
2003/2004
2002/2003
in 5 m
in 5 m
in 5 m
Cash reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonds and other fixed-interest securities . . . . . . . . . . .
thereof: Debt instruments issued by public
institutions and bills for refinancing at central
banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans and advances to banks . . . . . . . . . . . . . . . . . . . . .
Loans and advances to customers . . . . . . . . . . . . . . . . .
Leasing assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares and other variable-yield securities . . . . . . . . . .
Trust assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
9,849
34
7,699
27
5,704
5,205
7,852
20,852
0
2
4
4,760
7,952
21,219
0
11
5
4,039
8,180
21,840
0
13
6
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39,740
38,004
36,768
Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities to customers . . . . . . . . . . . . . . . . . . . . . . . . . .
Certified liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,019
2,231
18,614
16,765
2,174
14,723
17,277
2,034
13,653
22
IKB GROUP
The following table presents selected consolidated financial information of the IKB Group pursuant
to German GAAP as of and for the last three fiscal years ended 31 March 2005, 2004 and 2003, respectively:
Selected Income Statement Figures
2004/2005
2003/2004
2002/2003
in 5 m
in 5 m
in 5 m
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net commission income . . . . . . . . . . . . . . . . . . . . . . . . .
Net income from financial operations . . . . . . . . . . . . . .
Risk provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before taxes and distributions in respect of
silent participations and extraordinary result . . . . .
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . .
529.1
94.4
1.0
– 203.8
524.4
84.7
3.2
– 211.7
485.0
64.1
0.8
– 183.4
201.5
142.6
180.6
104.8
166.8
85.8
Return on equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.8 %
15.6 %
15.0 %
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.1 %
37.2 %
38.6 %
Selected Balance Sheet Figures
2004/2005
2003/2004
2002/2003
in 5 m
in 5 m
in 5 m
Cash reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonds and other fixed-interest securities . . . . . . . . . . .
thereof: Debt instruments issued by public
institutions and bills for refinancing at central
banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans and advances to banks . . . . . . . . . . . . . . . . . . . . .
Loans and advances to customers . . . . . . . . . . . . . . . . .
Leasing assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares and other variable-yield securities . . . . . . . . . .
Trust assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
10,468
34
8,211
27
5,927
5,205
1,389
24,354
927
23
4
4,837
1,238
24,116
2,231
87
5
4,198
2,140
24,803
2,466
38
6
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38,303
36,956
36,410
Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities to customers . . . . . . . . . . . . . . . . . . . . . . . . . .
Certified liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,088
1,988
18,914
15,112
2,228
14,734
16,223
2,019
13,700
23
RISK FACTORS
The following is a non-exhaustive description of certain risk factors with respect to the Securities and
the financial situation of the Issuer and IKB which prospective investors should consider before
deciding to purchase the Securities. The sequence in which the following risk factors are listed is not
an indication of their likelihood to occur or of the extent of their commercial consequences. Prospective investors should consider all of the information provided in this Prospectus and consult with
their own professional advisers if they consider it necessary.
Risks associated with the business of IKB
IKB’s business is subject to the risk categories described below. If any of the business risks described
below materialises, IKB may incur Balance Sheet Deficits which might result in Profit Distributions
being excluded and a write-down of the Cumulative Profit Participation Securities. This in turn would
adversely affect the Issuer’s ability to make payments under the Securities.
Counterparty and credit risk
IKB differentiates between credit risk and counterparty risk. The concept of credit risk defines the risk
that a loan cannot be repaid at all, or can only be partially repaid (in line with contractual agreement),
in the case of default by a contractual partner.
IKB is exposed to counterparty risk as a consequence of potential replacement risks related to interest rate and currency derivatives, which may be incurred in the event of counterparty default.
Market and liquidity risk
IKB understands market risk as the interest rate, currency and price risks to which equities and other
assets are exposed.
IKB distinguishes between two types of liquidity risk: the risk that current or future payment obligations cannot be met on time, or in full; and the risk that required funding can only be obtained at
unfavourable market conditions.
Country risk
The country rating is the key concept employed to assess and manage country risk. IKB’s country risk
exposure is managed by using limits.
Operational risk
As defined by the Basel Committee on Banking Supervision, operational risk is the threat of loss
resulting from inadequate or failed internal processes or systems, from human error, or from external events or disasters.
IKB also includes legal risk under operational risks; this is defined as the risk of loss incurred through
new legal regulations, changes to existing legal regulations as well as interpretations of new or existing legal regulations that are disadvantageous to IKB .
IT risks focus on the measures required to develop IKB’s business continuity planning, as well as on
the security of IKB’s IT systems and of its data inventory.
24
General business risk
IKB defines general business risk as unexpected negative changes in profitability as a result of a deteriorating market environment, changes in IKB’s competitive position or client behaviour, or of
changes to the legal framework.
Strategic and reputational risk
Strategic risks are defined as potential threats to IKB’s long-term profitability. These can be triggered
not only by changes in the legal or social environment, but by the market or competitive environment, IKB’s customers, or IKB’s refinancing partners.
Reputational risk concerns direct or indirect losses incurred as a result of damage to IKB’s reputation
amongst shareholders, customers, employees, business partners and the general public.
Detailed information on Risk and IKB’s Risk Management is contained in the Risk Report as part of the
respective “Management Report and Group Management Report” of the Annual Report 2004/2005.
Risks associated with the Securities
Coupon Payments on the Securities depend on IKB’s profits.
Both the Coupon Payments under the Securities to Securityholders and the Profit Distribution Payments under the Cumulative Profit Participation Securities depend on the future profits or losses of
IKB. Profit Distributions will not accrue if and to the extent that such accrual would create or increase
a Balance Sheet Deficit (Bilanzverlust) in IKB’s unconsolidated accounts in accordance with German
GAAP or if the book value of the Cumulative Profit Participation Securities has been written down as a
result of a sharing in IKB’s Balance Sheet Deficit and has not been fully written up again. If the Balance Sheet Profits of IKB do not suffice for the accrual of a full Profit Distribution, Profit Distributions
may accrue in part and, accordingly, the corresponding Coupon Payments will only be made in part.
IKB may make up for any Profit Distributions not made for the reasons set out above to the extent it
generates sufficient Balance Sheet Profits in subsequent years to pay Arrears of Profit Distributions
and current Profit Distributions. However, the Bank’s obligation to pay Arrears of Profit Distributions
and the Profit Distribution for the last Profit Period will be extinguished on the Repayment Date to the
extent not paid on such date due to the restrictions described above.
Capital Payments on the Securities are dependent on the Repayment Amount and the Additional
Repayments Amounts, if any, under the Cumulative Profit Participation Securities.
If, because the Cumulative Profit Participation Securities have participated in IKB’s Balance Sheet Deficit, there has been a Reduction of the Cumulative Profit Participation Securities’ book value, and the
Cumulative Profit Participation Securities’ book value as shown in IKB’s unconsolidated balance
sheet relating to the fiscal year of IKB immediately preceding the Repayment Date has not been fully
written up to 5 150,000,000, the aggregate Repayment Amount payable under the Cumulative Profit
Participation Securities will be lower than 5 150,000,000. Further, if the book value of the Cumulative
Profit Participation Securities is not fully written up to 5 150,000,000 as shown in IKB’s unconsolidated balance sheet relating to any fiscal year of IKB within four years following the end of the term
of the Cumulative Profit Participation Securities, the aggregate of the Repayment Amount and the
Additional Repayment Amounts, if any, payable under the Cumulative Profit Participation Securities
will be lower than 5 150,000,000. In such case, Capital Payments under the Securities will be lower
than the nominal amount of the Securities. Accordingly, Balance Sheet Deficits of IKB may result in
the Securityholders incurring a loss on their investment upon redemption of the Securities.
Distributions on and repayment of the Securities are conditional.
All of the Issuer’s payment obligations under the Securities (including in the event of a termination by
Securityholders pursuant to § 11 of the Terms and Conditions of the Securities) depend upon the
25
receipt in full of the necessary amounts payable by IKB under the Cumulative Profit Participation
Securities and the Indemnity Agreement and by the Lender under the Loan Agreement. To the extent
that the Issuer does not receive such amounts, there is no obligation to make payments under the
Securities.
Securities may be called for redemption prior to their scheduled maturity.
The Issuer may prematurely call the Securities for redemption. In addition, the Securities will be redeemed prior to their scheduled maturity date if IKB redeems the Cumulative Profit Participation
Securities early. In each case, the Securityholders are entitled to receive the nominal amount of the
Securities plus any accrued interest thereon, subject to receipt thereof by the Issuer from IKB and the
Lender. The Securityholders will not be entitled to Coupon Payments for any period after such redemption has occurred and there can be no assurance that the Securityholders will be able to reinvest the proceeds from the early redemption of the Securities at a comparable yield.
IKB provides no credit support for the benefit of the Securityholders.
Other than the indemnity for withholding tax under the laws of Jersey, if any, IKB will not grant any
kind of guarantee or other form of credit support for the benefit of the Securityholders and the Issuer
is not affiliated with IKB.
Claims under the Cumulative Profit Participation Securities are subordinated.
The payment obligations of IKB under the Cumulative Profit Participation Securities constitute obligations that are subordinated to the full prior payment in cash or cash equivalents of all existing and
future unsubordinated and subordinated indebtedness of IKB. Accordingly, the Issuer’s rights under
the Cumulative Profit Participation Securities will rank behind all creditors of IKB in the event of the
liquidation or dissolution of IKB. IKB’s payment obligations under the Cumulative Profit Participation
Securities will rank pari passu among themselves. IKB has not entered into any restrictive covenants
in connection with the Cumulative Profit Participation Securities regarding its ability to incur additional indebtedness ranking pari passu or senior to claims under the Cumulative Profit Participation
Securities.
Ranking in Liquidation
In the event that IKB is wound up, liquidated or dissolved (each a Liquidation Event), the payments
made under the Securities will be equal to the liquidation proceeds obtained by the Issuer in respect
of the Cumulative Profit Participation Securities. As required by Sec. 10(5) KWG for the recognition of
the proceeds received upon issuance of the Cumulative Profit Participation Securities as upper tier 2
capital instrument, the Terms and Conditions of the Cumulative Profit Participation Securities provide
that the Cumulative Profit Participation Securities rank junior to all unsubordinated creditors. Further,
the Cumulative Profit Participation Securities will rank pari passu among themselves and pari passu
with other forms of tier 2 capital instruments (including lower tier 2 capital instruments).
The terms and conditions of two silent partnership interests issued by IKB in 2002 and 2004, respectively, provide that claims under such instruments shall be subordinated as well, but in addition
would rank junior to any profit participation securities or other subordinated debt issued by IKB treated as tier 2 capital instruments. This subordination is required under Sec. 10(4) KWG for the recognition of the proceeds of the silent partnership interests as tier 1 capital. Although German insolvency
law does not distinguish between different “classes” of contractually subordinated debt, IKB expects,
in accordance with general market practice, that based on German banking regulations, the subordination provisions in IKB’s tier 1 capital instruments would be acknowledged upon occurrence of a
Liquidation Event and that, therefore, the Cumulative Profit Participation Securities would rank senior
to claims of the creditors under silent partnership interests and other tier 1 capital instruments.
26
The entities involved in the Transaction may incur additional liabilities
The activities of the Issuer are contractually limited to performing its role in the Transaction. There
can be no assurance that the management of the Issuer will restrict its business activities to the
Transaction, which may result in additional liabilities. Any such additional liabilities of the Issuer
could adversely affect its ability to perform its obligations in connection with the Transaction. Any
such effect would materially adversely affect the Issuer’s ability to perform its obligations under the
Securities. IKB is not restricted under the terms and conditions of the Cumulative Profit Participation
Securities from incurring additional liabilities (including additional subordinated liabilities).
The Agreements between IKB and the Issuer may not be at arms’ length.
The Issuer is a limited partnership registered under the Limited Partnerships (Jersey) Law, 1994, as
amended, and ProPart Funding 2005-1 Limited, the general partner of the Issuer, is owned by
Mourant & Co. Trustees Limited, acting as trustee for the ProPart Funding 2005-1 Charitable Trust,
and ProPart Funding 2005-1GmbH, the sole limited partner of the Issuer, is owned by Mourant & Co.
Trustees Limited, acting as trustee for the ProPart Funding 2005-1 GmbH Charitable Trust. Neither the
Issuer, the general partner, the limited partner, nor Mourant & Co. Trustees Limited is affiliated with
IKB. It is the intention of IKB and the Issuer that the terms of any agreements and transactions among
them, including the Cumulative Profit Participation Securities, the Contribution Agreement, the
Indemnity Agreement and the Loan Agreement by and among, IKB and the Issuer be fair to all parties
and consistent with market terms. However, there can be no assurance that such agreements or
transactions are on terms as favourable to the Issuer as those that could have been obtained from
parties unaffiliated with IKB.
There has been no prior market for the Securities.
The Securities that are the subject of this offering are a new issue of securities. Prior to their issue,
there has been no public market for the Securities. Although application has been made to have the
Securities listed on the Irish Stock Exchange and application will be made to have the Securities listed
on the Luxembourg Stock Exchange, there can be no assurance that an active public market for the
Securities will develop. If such a market develops, neither BNP Paribas nor any other person is
obliged to maintain it. Furthermore, the liquidity and the market for the Securities can be expected to
vary with changes in the securities market and economic conditions, the financial condition and
prospects of IKB and the Issuer and other factors which generally influence the market prices of securities. Such fluctuations may significantly affect liquidity and market prices for the Securities.
Agreements governed by German Law may be subject to General Termination Rights.
The Securities, the Cumulative Profit Participation Securities, the Contribution Agreement, the Loan
Agreement, the Indemnity Agreement and the Fiduciary Assignment Agreement are governed by
German law. Under German law, the right to terminate continuous contracts (Dauerschuldverhltnis)
in extraordinary circumstances (Kndigungsrecht aus wichtigem Grund) cannot be excluded. Even
though the circumstances under which such a termination right exists are limited, there can be no
assurance that a party to any of those agreements will not assert the existence of such a termination
right in the future.
Risks Relating to the Issuer
The Issuer is a special purpose entity and is not affiliated with IKB.
The Issuer is a special purpose entity that currently has, and during the term of the Transaction will
not have, any assets other than the claims under the Cumulative Profit Participation Securities, the
Loan Agreement, the Indemnity Agreement and the Contribution Agreement. Furthermore, the Issuer
is not affiliated with IKB. The Issuer, the Issuer’s partners, IKB, the Lender and the Security Trustee
have entered into a Fiduciary Assignment Agreement pursuant to which the Issuer has assigned and
transferred to the Security Trustee its ownership of the global certificate representing the Cumulative
27
Profit Participation Securities and has assigned all of its claims against the Lender under the loan
agreement and all of its claims against IKB for indemnification in respect of withholding tax under
the laws of Jersey, if any, to the Security Trustee for the benefit of the Securityholders. However,
there can be no assurance that the Security Trustee will receive sufficient funds to satisfy the Securityholders payment claims under the Securities. If the Security Trustee does not receive funds under
such claims, the Issuer will not be in a position to meet its obligations under the Securities. In such
case, Securityholders will have no claims or other recourse against IKB or other parties to the Transaction.
28
USE OF PROCEEDS
The proceeds from the issue of the Securities will amount to approximately 5 150,000,000 and will be
used by the Issuer to purchase the Cumulative Profit Participation Securities issued by IKB in the
same aggregate principal amount. IKB intends to use the proceeds from the Cumulative Profit Participation Securities for general corporate purposes and to strengthen its regulatory capital base. Including the commissions payable to BNP Paribas, the costs related to the offering of the Securities are
expected to amount to 5 1,400,000.
29
CAPITALISATION, REGULATORY CAPITAL,
BALANCE SHEET PROFITS AND NET PROFITS
Capitalisation
IKB
The audited unconsolidated capitalisation of IKB as at 31 March 2005, 2004 and 2003, respectively, is
as follows:
31 March
31 March
31 March
2005
2004
2003
(5 in million)
(5 in million)
(5 in million)
Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier I Hybrids (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Profit participation rights capital . . . . . . . . . . . . . . . . . .
Subordinated Liabilities . . . . . . . . . . . . . . . . . . . . . . . . .
Reserves (offene Rcklagen) . . . . . . . . . . . . . . . . . . . . . .
Fund for general banking risks . . . . . . . . . . . . . . . . . . . .
225
400
593
1,640
998
80
225
400
563
1,292
943
80
225
200
614
882
915
80
TOTAL equity/Profit participation capital . . . . . . . . . . .
Liabilities to banks and customers . . . . . . . . . . . . . . . .
Securitised Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,936
16,250
18,614
3,503
18,939
14,723
2,916
19,311
13,653
TOTAL Capitalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38,800
37,165
35,880
(1) including silent participations
IKB Group
The audited consolidated capitalisation of IKB as at 31 March 2005, 2004 and 2003, respectively, is as
follows:
31 March
2005
31 March
2004
31 March
2003
(5 in million)
(5 in million)
(5 in million)
Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier I Hybrids (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Profit participation rights capital . . . . . . . . . . . . . . . . . .
Subordinated Liabilities . . . . . . . . . . . . . . . . . . . . . . . . .
Reserves (offene Rcklagen) . . . . . . . . . . . . . . . . . . . . . .
Fund for general banking risks . . . . . . . . . . . . . . . . . . . .
225
1,045
593
1,165
1,019
80
225
820
563
1,042
919
80
225
620
614
632
873
80
TOTAL equity/Profit participation rights capital . . . . .
Liabilities to banks and customers . . . . . . . . . . . . . . . .
Securitised Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,127
14,076
18,914
3,649
17,340
14,734
3,044
18,242
13,700
TOTAL Capitalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37,117
35,723
34,986
(1) including silent participations and preferred shares
There has been no material change in the capitalisation and indebtedness of IKB and the IKB Group
since the interim report dated 30 June 2005 incorporated in this Prospectus.
30
Regulatory Capital
IKB
The following table shows the composition of IKB’s regulatory capital on an unconsolidated basis as
at the dates specified (columns may not add up due to rounding):
as of 31 March
2003
2004
2005
(5 in thousand)
(5 in thousand)
(5 in thousand)
1,419,927
1,648,527
1,694,414
200,000
400,000
400,000
Tier I (core) capital (Kernkapital) . . . . . . . . . . . . .
of which:
Silent participations (Stille Einlagen) . . . . . . .
Capital reserves and profit reserves
(Kapital- und Gewinnrcklagen) . . . . . . . . . .
Tier II (supplementary) capital
(Ergnzungskapital) . . . . . . . . . . . . . . . . . . . . . .
Tier III capital (§ 10 subsection 2 c KWG) . . . . . .
Deductible items (Abzugsposten) . . . . . . . . . . . .
914,647
943,247
997,907
1,269,146
11,564
0
1,292,419
12,934
0
1,244,614
4,312
0
Total (including deductible items
(Abzugsposten) pursuant to § 10
subsection 6 KWG) . . . . . . . . . . . . . . . . . . . . . . .
2,700,637
2,953,880
2,943,340
Tier I Ratio (in %) . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Capital Ratio (in %) . . . . . . . . . . . . . . . . . . . .
6.3 %
12.1 %
6.9 %
12.4 %
6.3 %
10.9 %
IKB Group
The following table shows the composition of IKB Group’s regulatory capital on a consolidated basis
as at the dates specified (columns may not add up due to rounding):
as of 31 March
2003
2004
2005
(5 in thousand)
(5 in thousand)
(5 in thousand)
1,803,000
1,976,000
2,338,000
692,000
892,000
1,117,000
Tier I (core) capital (Kernkapital) . . . . . . . . . . . . .
of which:
Silent participations (Stille Einlagen) . . . . . . .
Capital reserves and profit reserves
(Kapital- und Gewinnrcklagen) . . . . . . . . . .
Tier II (supplementary) capital
(Ergnzungskapital) . . . . . . . . . . . . . . . . . . . . . .
Tier III capital (§ 10 subsection 2 c KWG) . . . . . .
Deductible items (Abzugsposten) . . . . . . . . . . . .
1,028,000
1,123,000
1,229,000
1,190,000
0
– 21,000
1,449,000
0
– 14,000
1,503,000
0
– 13,000
Total (including deductible items
(Abzugsposten) pursuant to § 10
subsection 6 KWG) . . . . . . . . . . . . . . . . . . . . . . .
2,972,000
3,411,000
3,828,000
Tier I Ratio (in %) . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Capital Ratio (in %) . . . . . . . . . . . . . . . . . . . .
7.4 %
12.1 %
7.4 %
12.8 %
8.0 %
13.1 %
There has been no material change in the regulatory capitalisation of IKB and the IKB Group since the
interim report dated 30 June 2005 incorporated in this Prospectus.
31
Balance Sheet Profits and Net Profits of IKB
Coupon Payments on the Securities depend, among other things, on the unconsolidated Balance
Sheet Profits (Bilanzgewinn) of IKB for the respective preceding fiscal year. See “Summary of the
Terms of the Securities”.
The following table sets forth, as at 31 March 2003, 2004 and 2005, the Bank’s audited unconsolidated
Balance Sheet Profits and Net Profits:
Balance Sheet Profits (Bilanzgewinn) . . . . . . . . . . . . . .
Net Profits for the year (Jahresberschuss) . . . . . . . . .
32
2003
2004
2005
(5 in million)
(5 in million)
(5 in million)
68
110
70
99
70
125
TERMS AND CONDITIONS OF THE SECURITIES
The full text of the terms and conditions of the Securities is set forth below. As the Issuer’s payment
obligations under the Securities are contingent on receipt of Profit Distribution Payments and the
Repayment Amount from IKB under the Cumulative Profit Participation Securities, Advances from
the Lender under the Loan Agreement and payments from IKB under the Indemnity Agreement,
potential investors should carefully review and consider the provision of the Cumulative Profit Participation Securities (which can be found under „Terms and Conditions of the Cumulative Profit Participation Securities“) and the provisions of the Loan Agreement (which can be found under „Terms and
Conditions of the Loan Agreement“).
THE GERMAN TEXT OF THE TERMS AND CONDITIONS OF THE SECURITIES IS
LEGALLY BINDING. THE ENGLISH TRANSLATION IS FOR CONVENIENCE ONLY.
EMISSIONSBEDINGUNGEN
TERMS AND CONDITIONS
der
of the
7 150.000.000 befristeten Ergnzungskapital-Wertpapiere
7 150,000,000 Dated Upper Tier 2 Securities
der
issued by
ProPart Funding Limited Partnership
(nachstehend als Emittentin bezeichnet)
ProPart Funding Limited Partnership
(hereinafter called Issuer)
§1
Definitionen und Auslegung
§1
Definitions and Interpretation
Definitionen: Sofern aus dem Zusammenhang nicht etwas
anderes hervorgeht, haben die nachstehenden Begriffe
folgende Bedeutung:
Definitions: Unless the context requires otherwise, the following terms will have the following meanings:
Freistellungsvereinbarung bezeichnet die Vereinbarung
zwischen der Emittentin und der Bank, nach der die Bank
verpflichtet ist, fr etwaige im Hinblick auf Zahlungen auf
die Wertpapiere anfallende Quellensteuern in Jersey Zahlungen an die Emittentin zu leisten.
Indemnity Agreement means the agreement between the
Issuer and the Bank pursuant to which the Bank is obliged
to make payments to the Issuer in respect of withholding
tax, if any, levied in Jersey in relation to payments under
the Securities.
Ausgabetag bezeichnet den 29. September 2005.
Issue Date means 29 September 2005.
Ausgefallene Gewinnausschttung bezeichnet eine Gewinnausschttung, welche aufgrund von § 5(3) der Genussscheinbedingungen nicht gezahlt wurde.
Arrears of Profit Distribution means a Profit Distribution
which has not been paid pursuant to § 5(3) of the terms
and conditions of the Cumulative Profit Participation
Securities.
BaFin bezeichnet die Bundesanstalt fr Finanzdienstleistungsaufsicht oder eine etwaige Nachfolgebehrde, die
an deren Stelle tritt.
BaFin means the German Financial Supervisory Authority
or any successor agency taking its place.
Bank bezeichnet die IKB Deutsche Industriebank AG mit
Sitz in Dsseldorf und Berlin.
Bank means IKB Deutsche Industriebank AG having its
seat in Dsseldorf and Berlin.
Der Bilanzgewinn errechnet sich aus dem nicht konsolidierten Jahresberschuss oder Jahresfehlbetrag der
Bank, zuzglich des Gewinnvortrags aus dem Vorjahr,
abzglich des Verlustvortrags aus dem Vorjahr, zuzglich
der Entnahmen aus Kapital- und Gewinnrcklagen, abzglich der Einstellungen in Gewinnrcklagen, und zwar
jeweils in bereinstimmung und nach Maßgabe der deutschen handelsrechtlichen Rechnungslegungsvorschriften
(einschließlich des HGB) sowie sonstigen zum maßgeblichen Zeitpunkt anwendbaren deutschen Rechts.
The Balance Sheet Profit is calculated based on the Bank’s
annual unconsolidated net income or loss for the year,
plus any profits carried forward from the previous year,
minus any loss carried forward from the previous year,
plus withdrawals made from the capital reserves and
retained income, minus allocations to retained income, all
in compliance, and determined in accordance, with
accounting principles generally accepted in Germany
(including the German Commercial Code (Handelsgesetzbuch)) and other applicable German law then in effect.
Ein Bilanzverlust liegt dann vor, wenn die nicht konsolidierte Jahresbilanz der Bank nach Prfung durch eine von
der BaFin anerkannte Wirtschaftsprfungsgesellschaft keinen Bilanzgewinn fr das Geschftsjahr ausweist, auf das
sich die Gewinnausschttung bezieht.
A Balance Sheet Deficit is present if the annual unconsolidated balance sheet of the Bank, as audited by an auditing
firm recognized by the BaFin, does not show a Balance
Sheet Profit for the fiscal year to which the relevant Profit
Distribution relates.
Buchwert bezeichnet den handelsrechtlichen Buchwert
der Kumulativen Genussscheine, so wie dieser in der
Bilanz der Bank fr das jeweilige Geschftsjahr der Bank
festgestellt wurde.
Book Value means the book value of the Cumulative Profit
Participation Securities as specified in the Bank’s balance
sheet for the Bank’s respective fiscal year.
33
Clearing System bezeichnet Clearstream Frankfurt.
Clearing System means Clearstream Frankfurt.
Clearstream Frankfurt bezeichnet Clearstream Banking
AG, Neue Brsenstraße 1, 60487 Frankfurt am Main.
Clearstream Frankfurt means Clearstream Banking AG,
Neue Brsenstrasse 1, 60487 Frankfurt am Main.
Darlehensauszahlung hat die in § 4(3) festgelegte Bedeutung.
Advance has the meaning specified in § 4(3).
Darlehensgeberin bezeichnet die Bank.
Lender means the Bank.
Darlehensvertrag hat die in § 4(3) festgelegte Bedeutung.
Loan Agreement has the meaning specified in § 4(3).
Depotbank bezeichnet eine Bank oder ein sonstiges
Finanzinstitut, die bzw. das zum Betreiben des Wertpapierdepotgeschfts berechtigt ist und bei der bzw. dem der
betreffende Emissionsglubiger Wertpapiere in einem
Wertpapierdepot verwahren lsst und die bzw. das ein
Konto bei dem Clearing System unterhlt.
Custodian means any bank or other financial institution
authorised to engage in securities custody business with
which the relevant Securityholder maintains a securities
account in respect of any Securities and which maintains
an account with the Clearing System.
Einzahlungsvertrag hat die in § 4(2) festgelegte Bedeutung.
Contribution Agreement has the meaning specified in
§ 4(2).
Emissionsbedingungen bezeichnet diese Bedingungen
der Wertpapiere.
Terms and Conditions means these terms and conditions
of the Securities.
Emissionsglubiger bezeichnet die Inhaber eines Miteigentumsanteils oder -rechts an der Globalurkunde oder,
nach der Ausgabe effektiver Wertpapiere, die Inhaber solcher effektiver Wertpapiere.
Securityholder means any holder of a proportional co
ownership participation or right in the Global Security or,
after the issuance of definitive Securities, any holder of
any such definitive Security.
Emittentengesellschafter bezeichnet die Emittenten-Kommanditistin und die Emittenten-Komplementrin.
Issuer Partners means the Issuer Limited Partner and the
Issuer General Partner.
Emittenten-Kommanditistin bezeichnet ProPart Funding
2005-1 GmbH, eine nach deutschem Recht errichtete
Gesellschaft mit beschrnkter Haftung mit Sitz in Frankfurt
am Main, Deutschland, die der Limited Partner der Emittentin nach Maßgabe des Limited Partnerships (Jersey)
Law 1994 in der jeweils gltigen Fassung ist.
Issuer Limited Partner means ProPart Funding 2005-1
GmbH, a limited liability company incorporated under the
laws of Germany whose registered office is at Frankfurt
am Main and who is the limited partner of the Issuer
within the meaning of the Limited Partnerships (Jersey)
Law 1994, as amended.
Emittenten-Komplementrin bezeichnet ProPart Funding
2005-1 Limited, eine nach dem Recht von Jersey errichtete
Gesellschaft mit beschrnkter Haftung mit Sitz in 22 Grenville Street, St Helier, Jersey JE4 8PX, Kanalinseln, die der
General Partner der Emittentin nach Maßgabe des Limited
Partnerships (Jersey) Law 1994 in der jeweils gltigen Fassung ist.
Issuer General Partner means ProPart Funding 2005-1
Limited, a limited liability company incorporated under
the laws of Jersey whose registered office is at 22 Grenville Street, St Helier, Jersey JE4 8PX, Channel Islands,
and who is the general partner of the Issuer within the
meaning of the Limited Partnerships (Jersey) Law 1994, as
amended.
Emittentin hat die in § 2(1) festgelegte Bedeutung.
Issuer has the meaning specified in § 2(1).
Erste Gewinnperiode hat die in § 4(1)(b) festgelegte
Bedeutung.
First Profit Period has the meaning specified in § 4(1)(b).
Flligkeitstag hat die in § 4(1)(c) festgelegte Bedeutung.
Due Date has the meaning specified in § 4(1)(c).
Geschftstag bezeichnet jeden Tag, an dem TARGET (das
Trans-European Automated Real Time Gross Settlement
Express Transfer System) Buchungen oder Zahlungsanweisungen im Hinblick auf Zahlungen in Euro abwickelt.
Business Day means a day on which TARGET (the TransEuropean Automated Real Time Gross Settlement
Express Transfer System) is operating credit or transfer
instructions in respects of payments in Euro.
Gewinnausschttung hat die in § 4(1)(a) festgelegte
Bedeutung
Profit Distribution has the meaning specified in § 4(1)(a).
Gewinnausschttungszahlung hat die in § 4(1)(a) festgelegte Bedeutung.
Profit Distribution Payment has the meaning specified in
§ 4(1)(a).
Gewinnperiode hat die in § 4(1)(b) festgelegte Bedeutung.
Profit Period has the meaning specified in § 4(1)(b).
Globalurkunde und Globalurkunden hat die in § 2(2) festgelegte Bedeutung.
Global Security and Global Securities has the meaning
specified in § 2(2).
Ein Gross-up-Ereignis liegt vor, wenn die Emittentin durch
eine gesetzgebende Krperschaft, ein Gericht oder eine
Behrde in Jersey verpflichtet ist oder verpflichtet sein
wird, Zustzliche Betrge gemß § 10 zu zahlen und die
Bank diese Verpflichtung nicht durch das Ergreifen zumutbarer Maßnahmen abwenden kann.
A Gross-up Event shall be present if the Issuer has or will
become obliged by a legislative body, a court or any
authority in Jersey to pay Additional Amounts pursuant
to § 10 and that obligation cannot be avoided by the Bank
taking such reasonable measures it (acting in good faith)
deems appropriate.
Hauptzahlstelle hat die in § 13(1) festgelegte Bedeutung.
Principal Paying Agent has the meaning specified in
§ 13(1)
Kapitaleinzahlung hat die in § 4(2) festgelegte Bedeutung.
Contribution Payment has the meaning specified in § 4(2).
34
Kapitalertragsteuer bezeichnet die nach Maßgabe von
§ 43 EStG einbehaltene Kapitalertragsteuer zuzglich des
Solidarittszuschlags.
German Investment Income Tax means German investment income tax levied in accordance with § 43 German
Income Tax Act plus the solidarity surcharge.
Kumulative Genussscheine hat die in § 4(1) festgelegte
Bedeutung.
Cumulative Profit Participation Securities has the meaning specified in § 4(1).
KWG bezeichnet das Kreditwesengesetz.
KWG means the German Banking Act.
Nachfolgerin hat die in § 14(1) festgelegte Bedeutung.
Successor has the meaning specified in § 14(1).
Permanente Globalurkunde hat die in § 2(2) festgelegte
Bedeutung.
Permanent Global Security has the meaning specified in
§ 2(2).
Rckzahlungsbetrag bezeichnet entweder den Buchwert
der Kumulativen Genussscheine, so wie dieser in der
Bilanz der Bank fr das Geschftsjahr der Bank festgestellt
wurde, das dem Rckzahlungstag unmittelbar voranging,
oder den Gesamtnennbetrag der Kumulativen Genussscheine, je nachdem, welcher Betrag niedriger ist.
Repayment Amount means the lower of the book value of
the Cumulative Profit Participation Securities as shown in
the Bank’s unconsolidated balance sheet for the Bank’s fiscal year immediately preceding the Repayment Date and
their aggregate nominal amount.
Rckzahlungstag bezeichnet entweder den (i) 3. August
2015 oder, falls dies kein Geschftstag ist, den darauf folgenden Geschftstag, oder (ii), falls am 2. August 2015 der
Jahresabschlusses der Bank fr das am 31. Mrz 2015
beendete Geschftsjahr noch nicht festgestellt ist, den auf
die Feststellung folgenden Geschftstag, je nachdem, welcher Tag der sptere ist, sowie jeden anderen Tag, an dem
die Kumulativen Genussscheine zur Rckzahlung fllig
werden.
Repayment Date means the later of (i) 3 August 2015 or, if
that is not a Business Day, the next Business Day, or (ii) if
on 2 August 2015 the Bank’s annual financial statements
for the fiscal year ended 31 March 2015 have not been
adopted, the Business Day following adoption thereof, as
well as any other date on which the Cumulative Profit Participation Securities fall due for repayment.
Sperrfrist hat die in § 2(2) festgelegte Bedeutung.
Restricted Period has the meaning specified in § 2(2).
Ein Steuerereignis liegt vor, wenn die Emittentin aufgrund
einer Gesetzesnderung (oder einer nderung von darunter erlassenen Bestimmungen und Vorschriften) in Jersey
oder einer seiner Gebietskrperschaften oder einer seiner
Steuerbehrden, oder als Folge einer nderung der offiziellen Auslegung oder Anwendung solcher Gesetze,
Bestimmungen oder Vorschriften durch eine gesetzgebende Krperschaft, ein Gericht, eine Regierungsstelle
oder eine Aufsichtsbehrde (einschließlich des Erlasses
von Gesetzen sowie der Bekanntmachung gerichtlicher
oder aufsichtsrechtlicher Entscheidungen), in Jersey einkommensteuerpflichtig wird und Zinszahlungen, die von
der Emittentin auf die Wertpapiere zu zahlen sind, von der
Emittentin nicht fr einkommensteuerliche Zwecke
abzugsfhig sind und die Emittentin dieses Risiko nicht
durch das Ergreifen zumutbarer Maßnahmen abwenden
kann.
A Tax Event is present if as a result of any amendment to,
or change in, the laws (or any rules or regulations thereunder) of Jersey or any political subdivision or any taxing
authority thereof or therein, or as a result of any amendment to, or change in, an official interpretation or application of any such laws, rules or regulations by any legislative body, court, governmental agency or regulatory
authority (including the enactment of any legislation and
the publication of any judicial decision or regulatory
determination), the Issuer becomes subject to an income
tax liability in Jersey and the Coupon Payments payable
by the Issuer in respect of the Securities are not deductible
by the Issuer for Jersey income tax purposes, and that risk
cannot be avoided by the Issuer taking such reasonable
measures as it (acting in good faith) deems appropriate.
Steuererstattungsansprche hat die in § 4(2) festgelegte
Bedeutung.
Tax Repayment Claims has the meaning specified in
§ 4(2).
Tilgungszahlung hat die in § 7(1) festgelegte Bedeutung.
Redemption Payment has the meaning specified in § 7(1).
U. S. Person bezeichnet eine U. S. person im Sinne des US
amerikanischen Internal Revenue Code von 1986 in seiner
jeweils gltigen Fassung.
U. S. Person has the meaning specified in the United
States Internal Revenue Code of 1986, as amended.
Vorlufige Globalurkunde hat die in § 2(2) festgelegte
Bedeutung.
Temporary Global Security has the meaning specified in
§ 2(2).
Wertpapiere hat die in § 2(1) festgelegte Bedeutung.
Securities has the meaning specified in § 2(1).
Zahlstelle und Zahlstellen hat die in § 13(2) festgelegte
Bedeutung.
Paying Agent and Paying Agents has the meaning specified in § 13(2).
Zinsberechnungsmethode bezeichnet die Berechnung von
Zinsen fr einen krzeren Zeitraum als ein Jahr auf Grundlage der Anzahl der tatschlich vergangenen Tage des
Zinsberechnungszeitraums geteilt durch die Anzahl der
Tage (365 oder 366) in dem jeweiligen Zinsjahr.
Interest Calculation Method refers to the calculation of interest for a period of less than one year on the basis of the
actual number of days in such period divided by the actual
number of days (365 or 366) in the relevant interest year.
Zinszahlung hat die in § 6(1) festgelegte Bedeutung.
Coupon Payment has the meaning specified in § 6(1).
Zustzliche Betrge hat die in § 10 festgelegte Bedeutung.
Additional Amounts has the meaning specified in § 10.
Zustzliche Rckzahlungsbetrge sind die unter den
Voraussetzungen des § 8(2) der Genussscheinbedingungen zu zahlenden zustzlichen Betrge.
Additional Repayment Amounts are additional amounts
payable under § 8(2) of the terms and conditions of the
Cumulative Profit Participation Securities, if any.
35
Zustzliche Rckzahlungstage sind entweder (i) der 3. August des jeweiligen Jahres, in dem ein Zustzlicher Rckzahlungsbetrag zahlbar ist, oder, falls dies kein Geschftstag ist, der darauffolgende Geschftstag, oder (ii) falls am
2. August des Jahres, in dem ein Zustzlicher Rckzahlungsbetrag zahlbar ist, der Jahresabschluss der Bank fr
das am 31. Mrz dieses Jahres beendete Geschftsjahr
noch nicht festgestellt ist, den auf die Feststellung folgenden Geschftstag, je nachdem, welcher Tag der sptere ist.
Additional Repayment Dates means the later of (i)
3 August of each year in which an Additional Repayment
Amount is payable or, if that date is not a Business Day,
the next Business Day, or (ii) if on 2 August of the year in
which an Additional Repayment Amount is payable the
Bank’s annual financial statements for the fiscal year
ended on 31 March of such year have not been adopted,
the Business Day following adoption thereof.
§2
Stckelung; Verbriefung und Verwahrung;
bertragbarkeit
§2
Denomination; Form and Custody,
Transferability
(1) Stckelung: Die Emission der befristeten Ergnzungskapital-Wertpapiere im Gesamtnennbetrag von
5 150.000.000 (in Worten: Euro einhundertfnfzig Millionen) der ProPart Funding Limited Partnership (Emittentin) ist eingeteilt in 3.000 untereinander gleichrangige Teilschuldverschreibungen mit einem Nennbetrag von jeweils 5 50.000 (die Wertpapiere).
(1) Denomination: The issue of the Dated Upper Tier 2
Securities in the aggregate nominal amount of
5 150,000,000 (in words: euro one hundred fifty million) by ProPart Funding Limited Partnership (Issuer)
is divided into 3,000 notes, ranking pari passu among
themselves, in the nominal amount of 5 50,000 each
(the Securities).
(2) Verbriefung: Die Wertpapiere werden zunchst durch
eine vorlufige auf den Inhaber lautende Globalschuldverschreibung (die Vorlufige Globalurkunde)
ohne Zinsscheine verbrieft; die Vorlufige Globalurkunde wird nicht frher als 40 Tage (dieser Zeitraum
nachfolgend die Sperrfrist) und nicht spter als
180 Tage nach dem Ausgabetag in eine permanente
auf den Inhaber lautende Globalschuldverschreibung
(Permanente Globalurkunde, und die Vorlufige
Globalurkunde gemeinsam mit der Permanenten
Globalurkunde die Globalurkunden und jede fr sich
eine Globalurkunde) ohne Zinsscheine ausgetauscht,
und zwar gegen Nachweis ber das Nichtbestehen
U. S. amerikanischen wirtschaftlichen Eigentums (U. S.
beneficial ownership) an den Wertpapieren, der nach
Inhalt und Form den Anforderungen des Rechts der
Vereinigten Staaten von Amerika und den dann
bestehenden Usancen des Clearing Systems entspricht.
(2) Form: The Securities will initially be represented by a
temporary global bearer security (Temporary Global
Security) without interest coupons, which will be
exchanged not earlier than 40 days (this period hereinafter referred to as the Restricted Period) and not later
than 180 days after the Issue Date against a permanent
global bearer security (Permanent Global Security,
and the Temporary Global Security together with the
Permanent Global Security the Global Securities and
each a Global Security) without interest coupons
upon certification as to non U. S. beneficial ownership
of the Securities, the contents and form of which shall
correspond to the applicable requirements of the laws
of the United States of America and the then prevailing standard practices of the Clearing System.
(3) Effektive Wertpapiere: Falls die Emittentin (aus welchem Grund auch immer) rechtlich verpflichtet sein
sollte, effektive Wertpapiere auszugeben oder falls
Clearstream Frankfurt oder Euroclear fr einen Zeitraum von 21 aufeinanderfolgenden Geschftstagen
fr Geschfte geschlossen bleiben oder die Absicht
bekannt geben sollte, den Geschftsverkehr auf Dauer
aufzugeben und kein Ersatz-Clearing System zur Verfgung stehen sollte, wird die Globalurkunde in effektive Wertpapiere ausgetauscht. In diesem Fall werden
Wertpapiere in effektiven Inhaberurkunden ausgegeben, die entweder mit Zinsscheinen versehen sind,
oder bei denen der Nachweis der Zinszahlung auf
einem Abschnitt der Urkunde vermerkt wird. Mit Ausnahme von den in den vorangegangenen Stzen
beschriebenen Fllen haben die Emissionsglubiger
kein Recht, die Ausgabe von effektiven Urkunden ber
einzelne Wertpapiere und ber Zinsscheine zu verlangen.
(3) Definitive Securities: If, for any reason, the Issuer
becomes legally obliged to issue Securities in definitive form, or if either of Clearstream Frankfurt or Euroclear should be closed for business for a period of
21 consecutive Business Days or should announce an
intention permanently to cease business and no substitute clearing system should be available, the Global
Security will be exchanged for Securities in definitive
bearer form. In this case, Securities in definitive bearer
form will be issued which will either have coupons
attached or have a grid for recording the coupon payments endorsed thereon. Other than as provided for in
the immediately preceding sentences, the Securityholders shall have no right to require the issue of definitive certificates representing individual Securities
and interest coupons.
(4) Ausgabe und Verwahrung: Die Vorlufige Globalurkunde und die Permanente Globalurkunde sind
jeweils nur wirksam, wenn sie die eigenhndige
Unterschrift einer durch die Emittentin bevollmchtigten Person sowie die Unterschrift eines Kontrollbeauftragten der Hauptzahlstelle tragen. Die Globalurkunden werden bei dem Clearing System hinterlegt, bis
smtliche Verpflichtungen der Emittentin aus den
Wertpapieren erfllt sind.
(4) Issuance and Custody: Each of the Temporary Global
Security and the Permanent Global Security shall only
be valid if it bears the hand written signature of a duly
authorised representative of the Issuer and the control
signature of a person instructed by the Principal Paying Agent. The Global Securities shall be deposited
with the Clearing System, until the Issuer has satisfied
and discharged all its obligations under the Securities.
(5) bertragbarkeit: Den Emissionsglubigern stehen
Miteigentumsanteile oder -rechte an den Globalurkun-
(5) Transferability: The Securityholders will receive proportional co ownership participations or rights in the
36
den zu, die nach Maßgabe des anwendbaren Rechts
und der jeweils geltenden Usancen des Clearing
Systems bertragen werden knnen.
Global Securities that are transferable in accordance
with applicable law and applicable standards of the
Clearing System.
§3
Rang der Wertpapiere, Ausschluss der Aufrechnung
§3
Ranking of the Securities, No Right of Set-Off
(1) Die Wertpapiere begrnden unmittelbare, nicht nachrangige und (mit Ausnahme einer Sicherungsbereignung der die Kumulativen Genussscheine verbriefenden Globalurkunde und der Sicherungsabtretung
bestimmter Zahlungsansprche der Emittentin) nicht
besicherte bedingte Verbindlichkeiten der Emittentin
und stehen im gleichen Rang untereinander und mindestens im gleichen Rang mit allen gegenwrtigen
und zuknftigen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin, soweit zwingendes Gesetzesrecht nichts anderes vorschreibt.
(1) The Securities constitute direct, unsubordinated and
(save for the security transfer of the global security
representing the Cumulative Profit Participation Securities and certain payment claims of the Issuer) unsecured conditional obligations of the Issuer and rank
pari passu among themselves and at least pari passu
with all unsubordinated und unsecured obligations of
the Issuer, present or future, save for mandatory
exceptions prescribed by statutory law.
(2) Die Wertpapierinhaber sind nicht berechtigt, Forderungen aus den Wertpapieren mit mglichen Forderungen der Emittentin gegen sie aufzurechnen. Die Emittentin ist nicht berechtigt, Forderungen gegenber
den Wertpapierinhabern mit den Verbindlichkeiten
aus den Wertpapieren aufzurechnen.
(2) No Securityholder shall be entitled to set off any
claims arising under the Securities against any claims
that the Issuer may have against it. The Issuer may not
set off any claims it may have against any Securityholder against any of its obligations under the Securities.
§4
Kumulative Genussscheine; Einzahlungsvertrag;
Darlehensvertrag
§4
Cumulative Profit Participation Securities;
Contribution Agreement; Loan Agreement
(1) Kumulative Genussscheine: Den Erls aus der Ausgabe der Wertpapiere wird die Emittentin ausschließlich zu dem Zweck verwenden, von der Bank ausgegebene Genussscheine im Gesamtnennbetrag von
5 150.000.000 (in Worten: Euro einhundertfnfzig Millionen) (die Kumulativen Genussscheine) zu erwerben.
(1) Cumulative Profit Participation Securities: The proceeds of the issue of the Securities will be used by the
Issuer exclusively for the purpose of acquiring profit
participation securities issued by the Bank in the aggregate nominal amount of 5 150,000,000 (in words:
one hundred fifty million) (the Cumulative Profit Participation Securities).
(a) Gewinnausschttungszahlungen: Nach Maßgabe
der Genussscheinbedingungen stehen der Emittentin als Gegenleistung fr die Bereitstellung des
Genussrechtskapitals Gewinnausschttungen (Gewinnausschttungen) zu, die jeweils jhrlich nach
Maßgabe der Genussscheinbedingungen fr jedes
Geschftsjahr der Bank ermittelt und jhrlich nachtrglich ausgeschttet werden (jeweils eine Gewinnausschttungszahlung).
(a) Profit Distribution Payments: Under the Terms and
Conditions of the Cumulative Profit Participation
Securities, the Issuer will earn, as consideration
for providing profit participating capital, profit distributions (Profit Distributions) calculated annually
in accordance with the terms and conditions of the
Cumulative Profit Participation Securities for each
fiscal year of the Bank and payable annually in
arrear (each a Profit Distribution Payment).
(b) Gewinnperioden; Erste Gewinnperiode: Nach
Maßgabe der Genussscheinbedingungen fallen
auf das Genussrechtskapital Gewinnausschttungen fr Gewinnzeitrume (jeweils eine Gewinnperiode) an. Gewinnperioden laufen jeweils vom
1. April eines Kalenderjahres (einschließlich) bis
zum 31. Mrz (einschließlich) des darauf folgenden
Jahres. Die erste Gewinnperiode (Erste Gewinnperiode) beginnt am Ausgabetag (einschließlich)
und endet am 31. Mrz 2006 (einschließlich).
(b) Profit Periods; First Profit Period: Under the terms
and conditions of the Cumulative Profit Participation Securities, Profit Distributions on the profit
participating capital accrue for profit periods
(Profit Periods). Profit Periods run from (and
includes) 1 April of each calendar year to (and
includes) 31 March of the following calendar year.
The first Profit Period (First Profit Period) commences on (and includes) the Issue Date and ends
on (and includes) 31 March 2006.
(c) Flligkeitstage der Gewinnausschttungszahlungen: Jeder Tag, an dem nach Maßgabe der
Genussscheinbedingungen eine Gewinnausschttungszahlung fllig wird, ist ein Flligkeitstag.
(c) Due Dates for Profit Distribution Payments: Each
date on which a Profit Distribution Payment falls
due under the terms and conditions of the Cumulative Profit Participation Securities is a Due Date.
Nach Maßgabe des Genussscheinbedingungen
ist jede Gewinnausschttungszahlung entweder
(i) am 3. August eines Jahres nach Ablauf der
maßgeblichen Gewinnperiode oder, falls dies kein
Geschftstag ist, am darauf folgenden Geschftstag, oder (ii), falls an dem 2. August, der auf das
Ende der maßgeblichen Gewinnperiode folgt, der
Jahresabschlusses der Bank fr das Geschftsjahr
(1. April eines Jahres bis 31. Mrz des darauffolgenden Jahres), auf das sich die maßgebliche
Gewinnperiode bezieht, noch nicht festgestellt ist,
Under the terms and conditions of the Cumulative
Profit Participation Securities, each Profit Distribution Payment is payable on the later of (i) 3 August
following the end of the relevant Profit Period or, if
that is not a Business Day, the next Business Day,
or (ii) if on 2 August following the end of the relevant Profit Period the Bank’s annual financial statements for the fiscal year (1 April of a year to
31 March of the following year) to which the Profit
Period relates have not been adopted, the Business Day following adoption thereof.
37
an dem auf die Feststellung folgenden Geschftstag, je nachdem, welcher Tag der sptere ist.
(d) Ausschluss der Gewinnausschttung: Nach Maßgabe der Genussscheinbedingungen ist eine
Gewinnausschttung fr eine Gewinnperiode (einschließlich der Ersten Gewinnperiode) ausgeschlossen:
(d) Profit Distributions Excluded: Profit Distributions
for any Profit Period (including the First Profit Period) shall be excluded:
(i) falls und soweit ihre Zahlung, ggf. unter
Bercksichtigung der Nachzahlung von Ausgefallenen Gewinnausschttungen, zu einem
Bilanzverlust in dem Geschftsjahr der Bank,
auf das sich die maßgebliche Gewinnperiode
bezieht, fhren oder diesen erhhen wrde;
oder
(i) if and to the extent that payment of such Profit
Distribution would, also taking into account
the payment of Arrears of Profit Distributions,
lead to or increase a Balance Sheet Deficit for
the fiscal year of the Bank to which the relevant
Profit Period relates; or
(ii) wenn der Buchwert der Kumulativen Genussscheine aufgrund von Verlusten der Bank herangesetzt und noch nicht durch in Folgejahren
angefallene Gewinne aufgefllt wurde.
(ii) if the book value of the Cumulative Profit Participation Securities has been reduced due to
losses of the Bank and has not yet been fully
replenished by profits from the following
years.
(e) Nachzahlung Ausgefallener Gewinnausschttung:
Nach Maßgabe der Genussscheinbedingungen
sind Ausgefallene Gewinnausschttungen aus
den Bilanzgewinnen nachfolgender Gewinnperioden, die dem Rckzahlungsstag vorausgehen,
nachzuzahlen. Die Nachzahlung erfolgt am Rckzahlungstag fr die Gewinnausschttungszahlung
der jeweils nchsten Gewinnperiode, in der ein
Bilanzgewinn zur Verfgung steht. Reicht der
Bilanzgewinn der jeweils letzten Gewinnperiode
zur Zahlung der Ausgefallenen Gewinnausschttungen sowie der Gewinnausschttung fr die
jeweils letzte Gewinnperiode nicht aus, erfolgen
Zahlungen zunchst auf die Ausgefallenen
Gewinnausschttungen und erst danach auf die
Gewinnausschttung. Ausgefallene Gewinnausschttungen werden nicht verzinst.
(e) Payment of Arrears of Profit Distributions: Pursuant to the terms and conditions of the Cumulative Profit Participation Securities, Arrears of Profit
Distributions shall be paid out of Balance Sheet
Profits of subsequent Profit Periods prior to the
Repayment Date. The payment of Arrears of Profit
Distributions shall be made on the due date for the
Profit Distribution Payment in respect of the
respective next Profit Period for which a Balance
Sheet Profit is available. Should such Balance
Sheet Profit be insufficient for the payment of the
Arrears of Profit Distribution and the Profit Distribution for the respective last Profit Period, payment shall first be made on the Arrears of Profit
Distributions before any payment is made in respect of such Profit Distribution for the respective
last Profit Period. Arrears of Profit Distributions
shall not bear interest.
(f) Verfall von Ausgefallenen Gewinnausschttungen
und der Gewinnausschttung fr die letzte Gewinnperiode: Ausgefallene Gewinnausschttungen und die Gewinnausschttung fr die letzte
Gewinnperiode, die aufgrund der unter (d) und (e)
beschriebenen Bestimmungen nicht sptestens
am Rckzahlungstag gezahlt werden, verfallen am
Rckzahlungstag endgltig. Ein derartiger Verfall
stellt keinen Verzug und keine Pflichtverletzung
der Bank fr irgendeinen Zweck dar.
(f) Extinction of Arrears of Profit Distributions and
the Profit Distribution for the last Profit Period:
Arrears of Profit Distributions and the Profit Distribution for the last Profit Period which are not paid
on the Repayment Date due to the restrictions
described in (d) and (e) above shall be extinguished on the Repayment Date. Such Extinction
shall not constitute a default or a breach of obligations on the part of the Bank for any purpose.
(g) Vollstndige
Genussscheinbedingungen:
Die
Genussscheinbedingungen werden diesen Emissionsbedingungen sowie der Globalurkunde als
Anlage beigefgt und bilden mit diesen jeweils
eine Einheit.
(g) Complete terms and conditions of the Cumulative
Profit Participation Securities: The terms and conditions of the Cumulative Profit Participation Securities are attached to these Terms and Conditions
and to the Global Security and shall be deemed to
constitute one document herewith.
(2) Einzahlungsvertrag: Bei Zahlung von Gewinnausschttungszahlungen an die Emittentin und Wiederauffllungen nach einer Herabsetzung des Buchwerts
der Kumulativen Genussscheine nach Maßgabe der
Genussscheinbedingungen ist die Bank verpflichtet,
Kapitalertragsteuer auf die ausgeschtteten bzw. zur
Auffllung verwendeten Betrge einzubehalten.
Soweit diese Einbehalte nach deutschem Steuerrecht
der Emittenten-Kommanditistin zuzurechnen sind,
gelten sie als Vorauszahlungen auf die von der Emittenten-Kommanditistin geschuldete deutsche Einkommensteuer. In Bezug auf diese Vorauszahlungen geht
die Emittenten-Kommanditistin davon aus, dass ihr
gegenber den deutschen Finanzbehrden Steuererstattungsansprche zustehen (Steuererstattungsansprche). In diesem Zusammenhang haben die Emit-
(2) Contribution Agreement: Upon payment of Profit Distribution Payments to the Issuer and replenishments
after a reduction of the Book Value of the Cumulative
Profit Participation Securities in accordance with their
terms and conditions, the Bank must withhold German Investment Income Tax on the amounts distributed or used for replenishment. These withholdings,
to the extent attributable to the Issuer Limited Partner
in accordance with German tax laws, will be counted
as prepayments towards the German income tax
owed by the Issuer Limited Partner. In relation to such
prepayments, the Issuer Limited Partner expects to be
entitled to refund claims against the German tax
authorities (Tax Refund Claims). In this context, the
Issuer Partners entered into an agreement on 27 September 2005 (Contribution Agreement) under which
38
tentengesellschafter am 27. September 2005 einen Vertrag (Einzahlungsvertrag) geschlossen, nach dem die
Emittenten-Kommanditistin verpflichtet ist, der Emittentin smtliche Betrge zu zahlen, die sie von den
deutschen Steuerbehrden in Bezug auf Steuererstattungsansprche erhlt (jede solche Zahlung jeweils
eine Kapitaleinzahlung).
the Issuer Limited Partner is required to pay to the
Issuer all amounts that it receives from the German
tax authorities on account of Tax Refund Claims (each
such payment a Contribution Payment).
(3) Darlehensvertrag: Steuererstattungsansprche werden
erst nach der steuerlichen Veranlagung der EmittentenKommanditistin fr jedes einzelne Steuerjahr fllig.
Demgemß hat die Emittentin am 27. September 2005
mit der Darlehensgeberin einen Darlehensvertrag abgeschlossen (Darlehensvertrag), nach dem die Emittentin
Auszahlungen (jeweils eine Darlehensauszahlung) erhlt, um ihre Verpflichtung zur Zahlung von Zinszahlungen an den jeweiligen Flligkeitstagen nachzukommen
und die Kumulativen Genussscheine nach einer Herabsetzung ihres Buchwerts nach Maßgabe der Genussscheinbedingungen wieder aufzufllen. Die Emittentin
erwartet, die Darlehensauszahlungen mit den von der
Emittenten-Kommanditistin als Kapitaleinzahlungen erhaltenen Geldern zurckzufhren. Die Bestimmungen
des Darlehensvertrages werden diesen Emissionsbedingungen sowie der Globalurkunde als Anlage beigefgt und bilden mit diesen jeweils eine Einheit.
(3) Loan Agreement: Tax Refund Claims only become due
after the Issuer Limited Partner’s tax assessment for
each tax year. Accordingly, the Issuer has entered into
a loan agreement with the Lender on 27 September
2005 (Loan Agreement) pursuant to which the Issuer
is entitled to obtain advances (each an Advance) in
order to fund its obligations to make Coupon Payments on the relevant Due Dates or to fully replenish
the Cumulative Profit Participation Securities after a
reduction of their book value in accordance with their
terms and conditions. The Issuer expects to repay the
Advances with the monies that it receives from the
Issuer Limited Partner as Contribution Payments. The
terms of the Loan Agreement are attached to these
Terms and Conditions and to the Global Security and
shall be deemed to constitute one document herewith.
(4) Freistellungsvereinbarung: Gemß einer zwischen der
Bank und der Emittentin am 27. September 2005
geschlossenen Freistellungsvereinbarung (die Freistellungsvereinbarung) ist die Bank verpflichtet, Zahlungen an die Emittentin im Hinblick auf etwaige in
Jersey in Bezug auf Zahlungen auf die Wertpapiere
erhobene Quellensteuern zu leisten. Die Emittentin
wird die aufgrund der Freistellungsvereinbarung
geleisteten Zahlungen verwenden, um ihre Verpflichtung zu erfllen, etwaige Zustzliche Betrge gemß
§ 10 zu zahlen. Die Bestimmungen der Freistellungsvereinbarung werden diesen Emissionsbedingungen
sowie der Globalurkunde als Anlage beigefgt und bilden mit diesen jeweils eine Einheit.
(4) Indemnity Agreement: Pursuant to an indemnity
agreement dated 27 September 2005 among the Bank
and the Issuer (the Indemnity Agreement), the Bank is
obliged to make payments to the Issuer in respect of
withholding tax, if any, levied in Jersey in relation to
payments under the Securities. The Issuer will use the
payments under the Indemnity Agreement to fund its
obligations in respect of Additional Amounts, if any,
payable in accordance with § 10. The terms of the
Indemnity Agreement are attached to these Terms and
Conditions and to the Global Security and shall be
deemed to constitute one document herewith.
§5
Bindung der Emittentin; Rechtsverhltnisse
§5
Issuer Commitment; Legal Relationships
(1) Bindung der Emittentin: Die Wertpapiere verbriefen
die Verpflichtung der Emittentin, den Erls aus der
Ausgabe der Wertpapiere zum Erwerb der Kumulativen Genussscheine von der Bank zu verwenden und
(i) die Gewinnausschttungszahlungen, (ii) den Rckzahlungsbetrag und eventuell darauf aufgelaufene
Zinsen, (iii) die etwaigen Zustzlichen Rckzahlungsbetrge, (iv) die etwaigen Zahlungen aus der Freistellungsvereinbarung sowie (v) die Darlehensauszahlungen zu verwenden, um ihre Zahlungsverpflichtungen
gegenber den Emissionsglubigern nach Maßgabe
dieser Emissionsbedingungen zu erfllen. Vorbehaltlich § 6 ist die Emittentin unter keinen Umstnden verpflichtet, Zahlungen an die Emissionsglubiger zu
leisten, wenn sie nicht zuvor die ihr nach Maßgabe der
Genussscheinbedingungen oder des Darlehensvertrages zustehenden Betrge tatschlich erhalten hat.
(1) Issuer Commitment: The Securities represent the
Issuer’s obligation to use the proceeds from the issue
of the Securities for the purpose of acquiring the
Cumulative Profit Participation Securities from the
Bank, and to use (i) the Profit Distribution Payments,
(ii) the Repayment Amount, including any interest
accrued thereon, (iii) the Additional Repayment
Amounts, if any, (iv) payments under the Indemnity
Agreement, if any, and (v) the Advances to satisfy its
payment obligations to the Securityholders under
these Terms and Conditions. Subject to § 6, in no
event will the Issuer be under any obligation to make
payments to Securityholders without prior receipt of
the relevant amounts due to the Issuer under the
Cumulative Profit Participation Securities or the Loan
Agreement.
(2) Kein Rechtsverhltnis zwischen Emissionsglubigern
und Bank: Durch die Kumulativen Genussscheine, den
Darlehensvertrag und die Freistellungsvereinbarung
werden keine Rechte der Emissionsglubiger gegenber der Bank begrndet. Die Emissionsglubiger
sind nicht berechtigt, die Auslieferung von Kumulativen Genussscheinen an sich zu verlangen.
(2) No Relationship between Securityholders and Bank:
The Cumulative Profit Participation Securities, the
Loan Agreement and the Indemnity Agreement do not
create any rights for the Securityholders vis--vis the
Bank. The Securityholders shall have no claims for the
delivery of Cumulative Profit Participation Securities
to them.
(3) Kein Rechtsverhltnis zwischen Emissionsglubigern
und Emittenten-Kommanditistin: Durch den Einzah-
(3) No Relationship between Securityholders and Issuer
Limited Partner: The Contribution Agreement does
39
lungsvertrag werden keine Rechte der Emissionsglubiger gegenber der Emittenten Kommanditistin
begrndet.
not create any rights for the Securityholders vis--vis
the Issuer Limited Partner.
§6
Zinszahlungen
§6
Coupon Payments
(1) Flligkeit: An jedem Flligkeitstag wird die Emittentin
aus der jeweiligen Gewinnausschttungszahlung und
Darlehensauszahlung, die die Emittentin jeweils tatschlich von der Bank bzw. der Darlehensgeberin
erhalten hat, Zinsen auf die Wertpapiere in Hhe von
3,768 % p. a. (jeweils eine Zinszahlung) zahlen, wobei
die erste Zinszahlung auf jedes Wertpapier 5 1.589,78
betrgt. Falls die von der Bank geschuldete Gewinnausschttungszahlung geringer ist als die nach den
Genussscheinbedingungen an dem betreffenden Flligkeitstag maximal fllig werdende Gewinnausschttungszahlung, reduziert sich der auf jedes Wertpapier
zahlbare Betrag dem Verhltnis entsprechend. Kommt
es aufgrund der Genussscheinbedingungen zur Nachzahlung Ausgefallener Gewinnausschttungszahlungen an die Emittentin, benutzt die Emittentin diese
Gewinnausschttungszahlung sowie die korrespondierende Darlehensauszahlung zur Nachzahlung von
Zinszahlungen auf diese Wertpapiere, die aufgrund
des Ausfalls der Gewinnausschttungszahlung nicht
oder nicht vollstndig gezahlt wurden. Auf die einzelnen Wertpapiere entfllt jeweils ein verhltnismßiger
Anteil aller vorstehend genannten zahlbaren Betrge
(auf den nchsten vollen Cent abgerundet).
(1) Payment: Using the proceeds of the relevant Profit
Distribution Payment and Advance effectively
received by the Issuer from the Bank and the Lender,
respectively, from time to time on each Due Date, the
Issuer shall pay interest on each Due Date on the Securities to the Securityholders at the rate of 3.768 per
cent. per annum (each a Coupon Payment) with the
first Coupon Payment being 5 1,589.78 per Security.
To the extent that the Profit Distribution Payment
owed by the Bank is lower than the maximum Profit
Distribution Payment which would have fallen due on
the relevant Due Date under terms and conditions of
the Cumulative Profit Participation Securities, the
amount payable under the Securities shall be reduced
correspondingly and on a pro rata basis. If Arrears of
Profit Distributions are paid to the Issuer pursuant to
the terms and conditions of the Cumulative Profit Participation Securities, the Issuer shall use the respective payment and any related Advance to make up for
Coupon Payments which have not previously been
made as a result of the non-payment or a partial payment of Profit Distribution Payments. A pro rata share
of the above-mentioned amounts payable (rounded
down to the next full cent) shall be allocated to each
Security.
(2) Keine Nachzahlungsverpflichtung in Bezug auf Zinszahlungen: Die Emittentin ist nicht verpflichtet, Zinszahlungen, die aufgrund von § 5(1) oder § 6(1) ganz
oder teilweise ausfallen, nachzuholen.
(2) No Obligation to Compensate for Coupon Payments:
The Issuer shall be under no obligation to compensate
subsequently any Securityholder for Coupon Payments which are not made in whole or in part due to
§ 5(1) or § 6(1).
(3) Kein Ausgleich bei verspteter Zahlung: Falls der Tag
der Zahlung der Gewinnausschttungszahlung nach
Maßgabe der Genussscheinbedingungen verschoben
wird, erfolgt auf den insoweit nach dem vorgesehenen
Flligkeitstag gezahlten Betrag der Zinszahlung der
maßgeblichen Gewinnperiode keine Zahlung von Zinsen oder von sonstigen Betrgen.
(3) No Compensation for Late Payment: No interest or
further amounts will accrue or be payable on Coupon
Payments for a Profit Period which are paid after the
scheduled due date as a result of the postponement of
the payment date of a Profit Distribution Payment
under the terms and conditions of the Cumulative
Profit Participation Securities.
§7
Rckzahlung
§7
Redemption
(1) Rckzahlung: Am Rckzahlungstag wird die Emittentin (a) den Rckzahlungsbetrag, (b) ihr nach Maßgabe
der Genussscheinbedingungen noch zustehende Gewinnausschttungszahlungen und (c) die Mittel aus
diesbezglichen Darlehensauszahlungen, die sie jeweils tatschlich von der Bank bzw. der Darlehensgeberin erhalten hat, zur Rckzahlung der Wertpapiere
bzw. zur Zahlung aufgelaufener Zinsen auf die Wertpapiere an die Emissionsglubiger verwenden (Tilgungszahlung). Reichen die von der Emittentin als
Rckzahlungsbetrag, Gewinnausschttungszahlung
oder Darlehensauszahlung tatschlich erhaltenen
Betrge nicht aus, um eine Zahlung in Hhe des
Gesamtnennbetrags der Wertpapiere sowie am Rckzahlungstag geschuldeter Zinsen zu leisten, vermindern sich Rck- und Zinszahlung auf die Wertpapiere
entsprechend. Auf die einzelnen Wertpapiere entfllt
ein jeweils verhltnismßiger Anteil aller vorstehend
genannten zahlbaren Betrge (auf den nchsten vollen
Cent abgerundet).
(1) Repayment: On the Repayment Date, the Issuer will
use (a) the Repayment Amount, (b) any Profit Distribution Payment due under the Cumulative Profit Participation Securities, (c) any amounts from corresponding Advances and (d) any amounts payable under the
Indemnity Agreement effectively received by the
Issuer from the Bank and the Lender, respectively, for
the repayment of the Securities and/or the payment of
interest accrued on the Securities to the Securityholders (Redemption Payment). To the extent that the
amounts effectively received by the Issuer as a Repayment Amount, a Profit Distribution Payment or as
Advances are not sufficient to pay the aggregate nominal amount of the Securities and interest falling due
on the Repayment Date, the Redemption Payment
shall be reduced accordingly. A pro rata share of the
above amounts payable (rounded down to the next
full cent) shall be allocated to the respective individual
Securities.
(2) Falls der am Rckzahlungstag zu zahlende Betrag der
Tilgungszahlung niedriger ist als der Gesamtnennbetrag der Wertpapiere und falls und soweit der Emitten-
(2) If the Redemption Payment payable on the Repayment
Date is less than the aggregate nominal amount of the
Securities and, if and to the extent that the Issuer is
40
tin (a) Zustzliche Rckzahlungsbetrge nach Maßgabe der Genussscheinbedingungen und (b) Mittel
aus diesbezglichen Darlehensauszahlungen zustehen, wird die Emittentin die tatschlich von der Bank
bzw. der Darlehensgeberin erhaltenen Zustzlichen
Rckzahlungsbetrge und Darlehensauszahlungen zur
Rckzahlung der Wertpapiere an die Emissionsglubiger verwenden. Etwaige Zustzliche Rckzahlungsbetrge werden nicht verzinst und sind zusammen
mit entsprechenden Darlehensauszahlungen an dem
jeweiligen Zustzlichen Rckzahlungstag zu zahlen.
Auf die einzelnen Wertpapiere entfllt ein jeweils verhltnismßiger Anteil aller vorstehend genannten
zahlbaren Betrge (auf den nchsten vollen Cent abgerundet).
entitled to (a) Additional Repayment Amounts in accordance with the terms and conditions of the Cumulative Profit Participation Securities and (b) any
amounts from corresponding Advances, the Issuer
will use any Additional Repayment Amounts and
Advances effectively received by the Issuer from the
Bank and the Lender respectively for the repayment of
the Securities to the Securityholders. Any Additional
Repayment Amounts shall not bear interest and will
be payable together with corresponding Advances on
the relevant Additional Repayment Date. A pro rata
share of the above amounts payable (rounded down
to the next full cent) shall be allocated to the respective individual Securities.
(3) Erlschen der Zahlungspflichten: Durch die Zahlung
nach Maßgabe von § 7(1) und (2) an die Emissionsglubiger gilt das Kapital der Wertpapiere als vollstndig zurckgezahlt und alle Ansprche der Emissionsglubiger gegenber der Emittentin als erloschen.
(3) Discharge of Payment Obligations: Upon payment to
the Securityholders in accordance with § 7(1) and (2),
the principal of the Securities shall be deemed fully
repaid and all claims of the Securityholders against
the Issuer shall be deemed discharged.
(4) Bekanntmachung: Die Emittentin wird den Rckzahlungstag und etwaige Zustzliche Rckzahlungstage
nach Maßgabe von § 15 gegenber den Emissionsglubigern mit einer Frist von nicht weniger als 30
und nicht mehr als 60 Tagen bekannt machen und die
Irische Brse und die Luxemburger Brse entsprechend benachrichtigen.
(4) Notification: In accordance with § 15, the Issuer shall
notify the Securityholders of the Repayment Date and
Additional Repayment Dates, if any, within a notice
period of not less than 30 and not greater than 60 days
and notify the Irish Stock Exchange and the Luxembourg Stock Exchange accordingly.
§8
Kndigung durch Emittentin
§8
Termination by the Issuer
(1) Kndigung durch die Emittentin wegen Steuerereignis
oder Gross-up-Ereignis: Die Emittentin ist berechtigt,
die Wertpapiere jederzeit unter Einhaltung einer Kndigungsfrist von mindestens 30 Tagen und hchstens
60 Tagen durch Mitteilung nach Maßgabe des § 15 mit
sofortiger Wirkung zu kndigen, wenn ein Steuerereignis oder ein Gross-up-Ereignis eingetreten ist.
(1) Termination by the Issuer in case of a Tax Event or a
Gross-up Event: The Issuer may call the Securities for
redemption at any time, with immediate effect by giving not less than 30 days and not more than 60 days’
prior notice in accordance with § 15 if a Tax Event or a
Gross-up-Event has occurred.
(2) Eingeschrnkte Zulssigkeit der Kndigung: Die Kndigung der Wertpapiere durch die Emittentin nach Maßgabe dieses § 8 ist nur zulssig, sofern die Rckzahlung
der Wertpapiere zum Nennbetrag zuzglich aufgelaufener Zinsen durch Ausgabe vergleichbarer Schuldverschreibungen oder auf andere Weise gesichert ist.
(2) Limited Permissibility of Termination: Any termination
of the Securities by the Issuer in accordance with this
§ 8 is only permissible if financing of the redemption
of the Securities at their nominal amount plus any interest accrued thereon has been secured through the
issuance of similar debt securities or in any other way.
§9
Zahlungen
§9
Payments
(1) Befreiende Zahlung an das Clearing System: Die Emittentin verpflichtet sich, Zahlungen auf die Wertpapiere
bei Flligkeit in Euro an die Hauptzahlstelle zur Weiterleitung an das Clearing System oder dessen Order zur
Gutschrift auf den Konten der jeweiligen Kontoinhaber
bei dem Clearing System zu zahlen. Vorbehaltlich
§ 9(3) wird die Emittentin durch Leistung der Zahlung
an das Clearing System oder dessen Order in Hhe
der geleisteten Zahlung von ihrer Zahlungspflicht
befreit.
(1) Discharge by Payment to the Clearing System: The
Issuer undertakes to pay, as and when due, amounts
due on the Securities in Euro to the Principal Paying
Agent for onward payment to the Clearing System or
to its order for credit to the relevant accountholders of
the Clearing System. Subject to § 9(3), upon effecting
the payment to the Clearing System or to its order, the
Issuer shall be released from its payment obligation in
the amount of the payment effected.
(2) Zahlung an Geschftstagen: Falls eine Zahlung auf die
Wertpapiere an einem Tag zu leisten ist, der kein
Geschftstag ist, so erfolgt die Zahlung am nchstfolgenden Geschftstag. In diesem Fall steht den Emissionsglubigern weder ein Zahlungsanspruch noch
ein Anspruch auf Zinszahlungen oder eine andere Entschdigung wegen dieser Verzgerung zu.
(2) Payment on Business Days: If any payment of any
amount with respect to the Securities is to be effected
on a day other than a Business Day, payment shall be
effected on the next following Business Day. In this
case, the Securityholders shall neither be entitled to
any payment claim nor to any interest claim or other
compensation with respect to such delay.
(3) Zahlung bei effektiven Urkunden: Fr den Fall, dass
effektive Urkunden ber einzelne Wertpapiere ausgegeben worden sind, erfolgen Zahlungen auf die Wertpapiere gegen Vorlage und Aushndigung der betreffenden effektiven Urkunde (oder, allein im Falle von
Teilzahlungen, durch Indossament), außer im Fall von
(3) Payment on Definitive Certificates: In the event that
definitive certificates representing individual Securities have been issued, payments of amounts due in
respect of the Securities will be made against presentation and surrender (or, in the case of part payment
only, endorsement) of the relevant definitive certifi-
41
Zinszahlungen, die gegen Vorlage und Aushndigung
des betreffenden Zinsscheins (oder, allein im Falle von
Teilzahlungen, durch Indossament) erfolgen, jeweils
bei der Geschftsstelle einer Zahlstelle.
cate, except that payments of interest will be made
against presentation and surrender (or, in the case of
part payment only, endorsement) of the relevant interest coupon, in each case at the office of a Paying
Agent.
§ 10
Steuern
§ 10
Taxes
Smtliche auf die Wertpapiere zu zahlenden Betrge sind
ohne Einbehalt oder Abzug von oder aufgrund von gegenwrtigen oder zuknftigen Steuern oder sonstigen Abgaben gleich welcher Art zu leisten, von oder fr Rechnung
einer politischen Untergliederung oder Steuerbehrde
von oder in Jersey auferlegt oder erhoben werden, es sei
denn, ein solcher Einbehalt oder Abzug ist gesetzlich vorgeschrieben. In diesem Fall wird die Emittentin, jedoch
nur soweit sie die dafr erforderlichen Betrge tatschlich
von der Bank nach Maßgabe der Freistellungsvereinbarung erhalten hat, diejenigen zustzlichen Betrge
(Zustzlichen Betrge) zahlen, die erforderlich sind, damit
die den Emissionsglubigern zufließenden Nettobetrge
nach diesem Einbehalt oder Abzug jeweils den Betrgen
entsprechen, die ohne einen solchen Einbehalt oder
Abzug von den Emissionsglubigern empfangen worden
wren; die Verpflichtung zur Zahlung solcher zustzlicher
Betrge besteht jedoch nicht im Hinblick auf Steuern und
Abgaben, die:
All amounts payable in respect of the Securities shall be
made without withholding or deduction for or on account
of any present or future taxes or duties of whatever nature
imposed or levied by way of withholding or deduction by
or in or for the account of Jersey or any political subdivision or any authority thereof or therein having power to
tax unless such withholding or deduction is required by
law. In such event, the Issuer will, but subject always to
receipt thereof from the Bank under the Indemnity Agreement, pay such additional amounts (Additional Amounts)
as shall be necessary in order that the net amounts
received by the Securityholders, after such withholding or
deduction shall equal the respective amounts which
would otherwise have been receivable by the Securityholders in the absence of such withholding or deduction;
except that no such Additional Amounts shall be payable
on account of any taxes or duties which:
(1) auf andere Weise als durch Einbehalt oder Abzug von
zahlbaren Betrgen zu entrichten sind; oder
(1) are payable otherwise than by withholding or deduction from amounts payable; or
(2) wegen einer gegenwrtigen oder frheren persnlichen oder geschftlichen Beziehung des Emissionsglubigers zu Jersey zu zahlen sind, und nicht allein
deshalb, weil Zahlungen auf die Wertpapiere aus
Quellen in Jersey stammen (oder fr Zwecke der
Besteuerung so behandelt werden) oder dort besichert
sind; oder
(2) are payable by reason of the Securityholder having, or
having had some personal or business connection
with Jersey and not merely by reason of the fact that
payments in respect of the Securities are, or for purposes of taxation are deemed to be, derived from
sources in, or are secured in, Jersey; or
(3) aufgrund einer Richtlinie der Europischen Union
betreffend die Besteuerung von Zinsertrgen, die die
Schlussfolgerungen des Treffens des ECOFIN-Rates
vom 26.-27. November 2000 umsetzt, oder aufgrund
einer gesetzlichen Vorschrift, die diese Richtlinie
umsetzt oder befolgt oder erlassen wurde, um der
Richtlinie zu entsprechen, von Zahlungen an eine
natrliche Person einzubehalten oder abzuziehen
sind; oder
(3) are to be withheld or deducted from a payment to an
individual pursuant to any European Union Directive
on the taxation of savings implementing the conclusions of the ECOFIN Council meeting of 26–27 November 2000 or any law implementing or complying with,
or introduced in order to conform to, such Directive; or
(4) aufgrund einer Rechtsnderung zu zahlen sind, welche
spter als 30 Tage nach Flligkeit der betreffenden
Zahlung von Kapital oder Zinsen oder, wenn dies spter erfolgt, ordnungsgemßer Bereitstellung aller flligen Betrge und einer diesbezglichen Bekanntmachung nach Maßgabe von § 15 wirksam wird; oder
(4) are payable by reason of a change in law that becomes
effective more than 30 days after the relevant payment
of principal or interest becomes due, or is duly provided for and notice thereof is published in accordance with § 15, whichever occurs later; or
(5) von einer Zahlstelle abgezogen oder einbehalten werden, wenn eine andere Zahlstelle in einem EU-Mitgliedstaat die Zahlung ohne einen solchen Abzug
oder Einbehalt htte leisten knnen.
(5) are deducted or withheld by a Paying Agent from a
payment if the payment could have been made by
another Paying Agent in an EU member state without
such deduction or withholding.
§ 11
Kndigung durch Emissionsglubiger
§ 11
Termination by Securityholders
(1) Kndigungsgrnde: Jeder Emissionsglubiger ist
berechtigt, seine Wertpapiere durch Erklrung gegenber der Hauptzahlstelle zu kndigen und deren Rckzahlung zum Nennbetrag zuzglich aufgelaufener Zinsen auf seine Wertpapiere bis zum Tag der tatschlichen Rckzahlung zu verlangen, falls:
(1) Events of Default: Each Securityholder shall be
entitled to declare due and payable by notice to the
Principal Paying Agent its Securities and demand
immediate redemption thereof at their nominal
amount together with accrued interest (if any) on its
Securities to the date of repayment, in the event that:
42
(a) Kapital oder Zinsen auf die Wertpapiere nicht
innerhalb von 15 Tagen nach dem betreffenden
Flligkeitstag gemß §§ 6 und 7 weitergeleitet
wurden; oder
(a) principal or interest on the Securities have not
been paid within 15 days from the relevant due
date in accordance with §§ 6 and 7; or
(b) die Emittentin die ordnungsgemße Erfllung
einer sonstigen Verpflichtung aus den Wertpapieren unterlsst und diese Unterlassung lnger als
30 Tage andauert, nachdem die Hauptzahlstelle
hierber eine Benachrichtigung von einem Emissionsglubiger erhalten hat; oder
(b) the Issuer fails to duly perform any other obligation arising under the Securities and such failure
continues for more than 30 days without cure after
the Principal Paying Agent has received notice
thereof from a Securityholder; or
(c) die Emittentin ihre Zahlungen einstellt; oder
(c) the Issuer suspends its payments generally; or
(d) die Emittentin ihre Zahlungsunfhigkeit bekannt
gibt; oder
(d) the Issuer announces its inability to meet its financial obligations; or
(e) die Emittentin in Liquidation tritt, es sei denn, dies
geschieht im Zusammenhang mit einer Verschmelzung, Konsolidierung oder einer anderen
Form des Zusammenschlusses mit einer anderen
Gesellschaft oder im Zusammenhang mit einer
Umwandlung, und diese andere oder neue Gesellschaft bernimmt alle Verpflichtungen, die die
Emittentin im Zusammenhang mit den Wertpapieren eingegangen ist; oder
(e) the Issuer enters into liquidation, except in connection with a merger, consolidation or other
form of combination with another company or in
connection with a reorganisation and such other
or new company assumes all obligations undertaken by the Issuer under or in connection with
the Securities; or
(f) ein Gericht ein Insolvenzverfahren oder ein Vergleichsverfahren zur Abwendung der Insolvenz
oder des Konkurses oder ein vergleichbares Verfahren ber das Vermgen der Emittentin erffnet,
und ein solches Verfahren nicht innerhalb von
60 Tagen aufgehoben oder ausgesetzt wird, oder
die Emittentin die Erffnung eines solchen Verfahrens beantragt oder einleitet oder eine allgemeine
Schuldenregelung zugunsten ihrer Glubiger
anbietet oder trifft oder ein Dritter ein Insolvenzverfahren gegen die Emittentin beantragt und ein
solches Verfahren nicht innerhalb einer Frist von
60 Tagen aufgehoben oder ausgesetzt wird.
(f) a court institutes insolvency proceedings or composition proceedings to avert insolvency or bankruptcy or similar proceedings against the assets of
the Issuer and such proceedings are not discharged or stayed within 60 days, or the Issuer
applies for institution of such proceedings in respect of its assets or offers or makes a general
arrangement for the benefit of its creditors generally, or a third party applies for insolvency proceedings against the Issuer and such proceedings
are not discharged or stayed within 60 days.
Das Kndigungsrecht erlischt, falls der Kndigungsgrund vor Ausbung des Rechts geheilt wurde.
The right to declare Securities due shall terminate if
the cause of the termination has been cured before
the right is exercised.
(2) Quorum: In den Fllen des § 11(1)(b), (c), und/oder (d)
wird eine Kndigung, sofern nicht bei deren Eingang
zugleich einer der in § 11(1)(a), (e) oder (f) bezeichneten Kndigungsgrnde vorliegt, erst wirksam, wenn
bei der Hauptzahlstelle Kndigungserklrungen von
Emissionsglubigern im Gesamtnennbetrag von mindestens einem Zehntel des Gesamtnennbetrags der
ausstehenden Wertpapiere eingegangen sind.
(2) Quorum: In the events specified in § 11(1)(b), (c), and/
or (d), any notice declaring the Securities due shall,
unless at the time such notice is received any of the
events of default specified in § 11(1)(a), (e) or (f) has
occurred, become effective only when the Principal
Paying Agent has received such notices from the
Securityholders of at least one tenth of the aggregate
nominal amount of Securities then outstanding.
(3) Benachrichtigung: Eine Benachrichtigung oder Kndigung gemß § 11(1) hat in der Weise zu erfolgen, dass
der Emissionsglubiger der Hauptzahlstelle eine
schriftliche Erklrung per Bote oder durch eingeschriebenen Brief bersendet und dabei wie in § 16(3) vorgesehen nachweist, dass er im Zeitpunkt der Erklrung Inhaber der betreffenden Wertpapiere ist.
(3) Notice: Any notice in accordance with § 11(1) shall be
given by means of a written declaration delivered by
hand or registered mail to the Principal Paying Agent
together with evidence in accordance with § 16(3) that
such Securityholder, at the time of such written notice,
is a holder of the relevant Securities.
(4) Mittel fr die Rckzahlung bei Kndigung durch die
Emissionsglubiger: Im Fall einer Kndigung der
Wertpapiere durch die Emissionsglubiger aufgrund
dieses § 11 oder aus anderem Grund werden der Emittentin fr dann auf gekndigte Wertpapiere fllig werdende Zahlungen keine Mittel zur Verfgung stehen
außer dem Rckzahlungsbetrag, etwaigen Zustzlichen Rckzahlungsbetrgen, den Gewinnausschttungszahlungen, den Zahlungen auf Ausgefallene
Gewinnausschttungen und Darlehensauszahlungen,
welche die Emittentin aufgrund und im Einklang mit
den Bedingungen der Kumulativen Genussscheine
bzw. des Darlehensvertrags tatschlich erhalten hat.
Daher erfolgen Zahlungen auf gekndigte Wertpa-
(4) Funds in the Event of Termination by Securityholders:
In the event of a termination of any the Securities pursuant to this § 11 or otherwise, the Issuer will have no
funds available for payment of any amounts in respect
of any terminated Securities other than any Repayment Amount, any Additional Repayment Amounts,
Profit Distribution Payment, Arrears of Profit Distribution or Advances actually received by the Issuer under,
and in accordance with the terms of, the Cumulative
Profit Participation Securities and the Loan Agreement, respectively. Accordingly, the payment of any
amounts in respect of any terminated Securities will
be subject to, and conditional upon, actual receipt of
the requisite amounts by the Issuer under the Cumula-
43
piere nur, und sind bedingt durch, den tatschlichen
Erhalt der entsprechenden Betrge durch die Emittentin aufgrund der Kumulativen Genussscheine bzw. des
Darlehensvertrags.
tive Profit Participation Securities and the Loan Agreement.
§ 12
Vorlegungsfrist; Verjhrung
§ 12
Presentation Period; Prescription
Die Vorlegungsfrist gemß § 801 (1) Satz 1 BGB fr die
Wertpapiere wird auf zehn Jahre verkrzt. Die Verjhrungsfrist fr Ansprche aus den Wertpapieren, die innerhalb der Vorlegungsfrist zur Zahlung vorgelegt wurden,
betrgt zwei Jahre von dem Ende der betreffenden Vorlegungsfrist an.
The period for presentation of the Securities (as provided
for in § 801(1) sentence 1 of the German Civil Code) shall
be reduced to ten years. The period of limitation for claims
under the Securities presented during the period for presentation shall be two years calculated from the expiration of the relevant presentation period.
§ 13
Zahlstellen
§ 13
Paying Agents
(1) Hauptzahlstelle: Die BNP Paribas Securities Services,
Niederlassung Frankfurt am Main, ist die anfngliche
Hauptzahlstelle (Hauptzahlstelle).
(1) Principal Paying Agent: BNP Paribas Securities Services, Frankfurt am Main Branch, shall be the initial paying agent (Principal Paying Agent).
(2) Zustzliche Zahlstellen: Die NCB Stockbrokers Ltd.,
Dublin, und BNP Paribas Securities Services, Niederlassung Luxemburg, als weitere Zahlstellen (gemeinsam mit der Hauptzahlstelle, die Zahlstellen, und jede
eine Zahlstelle) bestellt. Die Emittentin wird dafr sorgen, dass solange Wertpapiere an der Irischen Brse
notiert sind, immer eine Zahlstelle in Irland bestellt ist
und, dass solange Wertpapiere an der Luxemburger
Brse notiert sind, immer eine Zahlstelle in Luxemburg bestellt ist. In keinem Fall darf die Adresse einer
von der Emittentin benannten Zahlstelle innerhalb der
Vereinigten Staaten oder deren Landesbesitzungen
liegen.
(2) Additional Paying Agents: NCB Stockbrokers Ltd.,
Dublin, and BNP Paribas Securities Services, Luxembourg Branch, shall be appointed as additional paying
agents (together with the Principal Paying Agent the
Paying Agents, and each a Paying Agent). The Issuer
shall procure that as long as the Securities are listed
on the Irish Stock Exchange, there will at all times be a
Paying Agent in Ireland and as long as the Securities
are listed on the Luxembourg Stock Exchange, there
will at all times be a Paying Agent in Luxembourg. In
no event shall the specified office of a Paying Agent
appointed by the Issuer be within the United States or
its possessions.
(3) Ersetzung von Zahlstellen: Die Emittentin wird dafr
sorgen, dass stets eine Hauptzahlstelle vorhanden ist.
Die Emittentin ist berechtigt, Banken von internationalem Ansehen als Hauptzahlstelle zu bestellen. Die
Emittentin ist weiterhin berechtigt, die Bestellung
einer Bank zur Hauptzahlstelle zu widerrufen. Im Falle
einer solchen Abberufung oder, falls die bestellte Bank
nicht mehr als Hauptzahlstelle ttig werden kann oder
will, bestellt die Emittentin eine andere Bank von internationalem Ansehen als Hauptzahlstelle. Die Emittentin wird sich, soweit mglich, darum bemhen, dass
stets eine Zahlstelle mit Geschftsstelle in einem Mitgliedsstaat der Europischen Union vorhanden ist, die
nicht verpflichtet ist, Steuern einzubehalten oder abzuziehen, die aufgrund einer Richtlinie der Europischen
Union betreffend die Besteuerung von Zinsertrgen,
die die Schlussfolgerungen des Treffens des ECOFINRates vom 26.-27. November 2000 umsetzt, oder aufgrund einer gesetzlichen Vorschrift, die diese Richtlinie
umsetzt oder befolgt oder erlassen wurde, um der
Richtlinie zu entsprechen, einzubehalten oder abzuziehen sind. Jede solche Bestellung oder ein solcher
Widerruf der Bestellung ist unverzglich gemß § 15
oder, falls dies nicht mglich sein sollte, in sonstiger
Weise ffentlich bekannt zu machen.
(3) Replacement of Paying Agents: The Issuer shall procure that there will at all times be a Principal Paying
Agent. The Issuer shall be entitled to appoint banks of
international standing as Principal Paying Agent.
Furthermore, the Issuer shall be entitled to terminate
the appointment of a bank as Principal Paying Agent.
In the event of such termination or such bank being
unable or unwilling to continue to act as Principal Paying Agent, the Issuer shall appoint another bank of
international standing as Principal Paying Agent. The
Issuer shall to the extent possible procure that it will
at all times maintain a Paying Agent with a specified
office in a European Union member state that will not
be obliged to withhold or deduct tax pursuant to any
European Union Directive on the taxation of savings
implementing the conclusions of the ECOFIN Council
meeting of 26–27 November 2000 or any law implementing or complying with, or introduced in order to
conform to, such Directive. Any such appointment or
termination shall be published without undue delay in
accordance with § 15, or, should this not be possible,
shall be published in another way.
(4) Haftung der Zahlstellen: Jede Zahlstelle haftet dafr,
dass sie Erklrungen abgibt, nicht abgibt oder entgegennimmt oder Handlungen vornimmt oder unterlsst, nur, wenn und soweit sie die Sorgfalt eines
ordentlichen Kaufmanns verletzt hat.
(4) Liability of Paying Agents: Each Paying Agent shall be
held responsible for giving, failing to give, or accepting a declaration, or for acting or failing to act, only if,
and insofar as, it fails to act with the diligence of a conscientious businessman.
(5) Rechtsverhltnisse der Zahlstellen: Die Zahlstellen sind
in ihrer jeweiligen Funktion ausschließlich Beauftragte
der Emittentin. Zwischen den Zahlstellen einerseits
und den Emissionsglubigern andererseits besteht
kein Auftrags- oder Treuhandverhltnis. Die Zahlstellen
sind von den Beschrnkungen des § 181 BGB und
(5) Paying Agent Legal Matters: The Paying Agents, acting in such capacity, act only as agents of the Issuer.
There is no agency or fiduciary relationship between
the Paying Agents on the one hand and the Securityholders on the other hand. Each of the Paying Agents
shall be exempt from the restrictions set forth in § 181
44
etwaigen gleichartigen Beschrnkungen des anwendbaren Rechts anderer Rechtsordnungen befreit.
German Civil Code and similar restrictions of other applicable laws of other jurisdictions.
§ 14
Ersetzung
§ 14
Substitution
(1) Ersetzung: Die Emittentin ist jederzeit berechtigt, ohne
Zustimmung der Emissionsglubiger im Wege (i) der
Abtretung bzw. Vertragsbernahme oder (ii) einer
gesellschaftsrechtlichen Umstrukturierung eine andere Gesellschaft an ihrer Stelle als Hauptschuldnerin
und Hauptglubigerin (Nachfolgerin) fr alle Verpflichtungen und Rechte aus und im Zusammenhang mit
den Wertpapieren, den Kumulativen Genussscheinen
und dem Einzahlungsvertrag sowie sonstigen, mit
diesen Vertrgen zusammenhngenden Vertrge einzusetzen; allerdings nur sofern:
(1) Substitution: The Issuer may, at any time and without
the consent of the Securityholders, substitute by
(i) assignment or contractual assumption or (ii) corporate restructuring another entity for the Issuer as principal debtor and creditor (Successor) in respect of all
obligations and rights under and in connection with
the Securities, the Cumulative Profit Participation
Securities and the Contribution Agreement as well as
any other agreements related thereto, provided that:
(a) sie sich nicht mit einer Zahlung auf die Wertpapiere in Verzug befindet;
(a) the Issuer is not in default in respect of any payment owed under the Securities;
(b) die Nachfolgerin alle Rechte und Verpflichtungen
der Emittentin in Bezug auf die Wertpapiere bernimmt;
(b) the Successor assumes all rights and obligations
of the Issuer under the Securities;
(c) die Emittentin und die Nachfolgerin alle erforderlichen Genehmigungen erhalten haben und berechtigt sind, die zur Erfllung der Zahlungsverpflichtungen aus den Wertpapieren zahlbaren Betrge
in Euro zu zahlen, ohne verpflichtet zu sein, in
dem Land, in dem die Nachfolgerin oder die Emittentin ihren jeweiligen Sitz oder Steuersitz haben,
erhobene Steuern oder andere Abgaben jeder Art
abzuziehen oder einzubehalten;
(c) the Issuer and the Successor have obtained all
necessary permits and are authorised to comply
with the payment obligations under the Securities
by paying the amounts due in Euro without being
obliged to withhold or deduct applicable tax or
other duties of any kind in the respective country
in which the Successor or the Issuer is domiciled
or resident for tax purposes;
(d) die Nachfolgerin sich verpflichtet hat, die Investoren hinsichtlich solcher Steuern, Abgaben oder
behrdlichen Lasten freizustellen, die den Emissionsglubigern bezglich der Ersetzung auferlegt
werden; und
(d) the Successor has agreed to indemnify the Securityholders against such taxes, duties or other governmental charges as may be imposed on the
Securityholders in connection with the substitution; and
(e) die Ersetzung nicht zu einer erhhten Belastung
der (i) Nachfolgerin oder (ii) ihrer Anteilseigner
(fr den Fall einer Kapitalgesellschaft) bzw. Gesellschafter (fr den Fall einer Personengesellschaft)
mit Kapitalertrag oder sonstiger Abzugssteuer,
etwaiger Vermgensteuer oder der Gewerbeertrag
oder sonstiger Ertragsteuer fhrt, es sei denn
diese erhhte Belastung wird zugunsten der Nachfolgerin und/oder ihrer Anteilseigner bzw. Gesellschafter ausgeglichen.
(e) the substitution does not result in an increase in
German Investment Income Tax or any other withholding tax, in property tax, if applicable, trade
income or any other income tax payable by (i) the
Successor or (ii) its shareholders (if incorporated
as a corporation) or partners (if established as a
partnership), unless the Successor and/or its
shareholders or partners are indemnified for such
increase.
(2) Bekanntmachung der Ersetzung: Jedwede Ersetzung
gemß diesem § 14 ist den Emissionsglubigern unverzglich nach Maßgabe von § 15 bekannt zu machen.
(2) Notification of Substitution: Any substitution in accordance with this § 14 shall be notified to Securityholders
in accordance with § 15 hereof without undue delay.
(3) nderung von Bezugnahmen: Im Fall einer Ersetzung
gilt jedwede Bezugnahme in diesen Emissionsbedingungen auf die Emittentin ab dem Zeitpunkt der Ersetzung als Bezugnahme auf die Nachfolgerin und jedwede Bezugnahme auf das Land, in dem die Emittentin ihren Sitz hat, als Bezugnahme auf das Land, in
dem die Nachfolgerin ihren Sitz hat.
(3) Change in Reference: Upon substitution, any references in these Terms and Conditions to the Issuer
shall forthwith be deemed to be references to the Successor, and any references to the country of domicile
of the Issuer shall forthwith be deemed to be references to the country of domicile of the Successor; in
each case with effect from the substitution date.
§ 15
Bekanntmachungen
§ 15
Notices
(1) Mitteilungen ber die Irische Brse: Alle Bekanntmachungen an die Emissionsglubiger werden, solange
die Wertpapiere an der Irischen Brse notiert werden
und die Irische Brse dies verlangt, durch Mitteilung
an das Company Announcements Office der Irischen
Brse bekannt gemacht.
(1) Notices of the Irish Stock Exchange: All notices to the
Securityholders will be given by the Issuer, so long as
any of the Securities are listed on the Irish Stock
Exchange and the Irish Stock Exchange so requires, by
notification to the Company Announcements Office of
the Irish Stock Exchange.
(2) Mitteilungen ber die Presse: Alle Bekanntmachungen
an die Emissionsglubiger werden (i) solange die
Wertpapiere an der Luxemburger Brse notiert wer-
(2) Newspaper Notices: All notices to the Securityholder
will be given by the Issuer (i), so long as any of the
Securities are listed on the Luxembourg Stock
45
den und die Luxemburger Brse dies verlangt, durch
Verffentlichung in einer fhrenden Zeitung mit genereller Verbreitung in Luxemburg oder durch Verffentlichung auf der Website der Luxemburger Brse
(www.bourse.lu) bekannt gemacht. Eine Mitteilung
gilt mit dem Tag ihrer Verffentlichung (oder bei mehreren Verffentlichungen mit dem Tage der ersten Verffentlichung) als erfolgt.
Exchange and the Luxembourg Stock Exchange so
requires, by publication in a leading newspaper having general circulation in Luxembourg or by publication on the website of the Luxembourg Stock Exchange (www.bourse.lu). A notice shall be deemed to
be made on the day of its publication (or, in the case of
more than one publication, on the day of the first publication).
(3) Unmittelbare Mitteilungen: Sofern die Regularien der
Brse, an der die Wertpapiere notiert sind, dies zulassen, ist die Emittentin berechtigt, Bekanntmachungen
auch durch eine Mitteilung an das Clearing System zur
Weiterleitung an die Emissionsglubiger oder direkt
an die Emissionsglubiger zu bewirken. Bekanntmachungen ber das Clearing System gelten sieben Tage
nach der Mitteilung an das Clearing System, direkte
Mitteilungen an die Emissionsglubiger mit ihrem
Zugang als bewirkt.
(3) Direct Notices: The Issuer shall also be entitled to give
notices to the Clearing System for communication by
the Clearing System to the Securityholders or directly
to the Securityholders provided that this complies
with the rules of the stock exchange on which the
Securities are listed. Notifications vis--vis the Clearing System shall be deemed to be effected seven days
after the notification to the Clearing System, direct
notifications to the Securityholders shall be deemed
to be effected upon their receipt.
(4) Auslegung bei den Zahlstellen: Die Texte smtlicher
Verffentlichungen gemß diesem § 15 sind außerdem in den Geschftsrumen der Zahlstellen zugnglich zu machen.
(4) Display at the Paying Agents: The text of any publication to be made in accordance with this § 15 shall also
be available at the specified office of each Paying
Agent.
§ 16
Schlussbestimmungen
§ 16
Final Clauses
(1) Anwendbares Recht: Form und Inhalt der Wertpapiere
sowie die Rechte und Pflichten der Emissionsglubiger, der Emittentin und der Zahlstellen bestimmen
sich in jeder Hinsicht nach deutschem Recht und werden in bereinstimmung damit ausgelegt.
(1) Governing Law: The form and content of the Securities
and the rights and duties of the Securityholders, the
Issuer and the Paying Agents shall in all respects be
governed by, and construed in accordance with, the
laws of Germany.
(2) Gerichtsstand: Jegliche aus oder im Zusammenhang
mit den Wertpapieren entstehenden Klagen oder Verfahren unterliegen der nichtausschließlichen Zustndigkeit des Landgerichts Dsseldorf.
(2) Jurisdiction: The District Court in Dsseldorf shall
have non exclusive jurisdiction for any action or other
legal proceedings arising out of or in connection with
the Securities.
(3) Geltendmachung von Ansprchen: Jeder Emissionsglubiger kann in Rechtsstreitigkeiten gegen die Emittentin oder in Rechtsstreitigkeiten, an denen der Emissionsglubiger und die Emittentin beteiligt sind, im
eigenen Namen seine Rechte aus den ihm zustehenden Wertpapiere unter Vorlage der folgenden Dokumente geltend machen:
(3) Enforcement: Any Securityholder may, in any proceedings against the Issuer or to which the Securityholder and the Issuer are parties, protect and enforce
in its own name its rights arising under its Securities
upon presentation of the following documents:
(a) einer Bescheinigung seiner Depotbank, die (i) den
vollen Namen und die volle Anschrift des Emissionsglubiger bezeichnet (ii) den Gesamtnennbetrag von Wertpapieren angibt, die am Ausstellungstag dieser Bescheinigung dem bei dieser
Depotbank bestehenden Wertpapierdepot dieses
Emissionsglubigers gutgeschrieben sind und
(iii) besttigt, dass die Depotbank dem Clearing
System und der Hauptzahlstelle eine schriftliche
Mitteilung gemacht hat, die die Angaben gemß
(i) und (ii) enthlt und Besttigungsvermerke des
Clearing Systems trgt; und
(a) a certificate issued by its Custodian (i) stating the
full name and address of the Securityholder,
(ii) specifying the aggregate nominal amount of
Securities credited on the date of such statement
to such Securityholder’s securities account maintained with its Custodian and (iii) confirming that
its Custodian has given a written notice to the
Clearing System and the Principal Paying Agent
containing the information specified in (i) and (ii)
and, bearing the acknowledgement of the Clearing
System; and
(b) einer von einem Vertretungsberechtigten des Clearing Systems oder einer Zahlstelle beglaubigten
Ablichtung der Globalurkunde.
(b) a copy of the Global Security, certified as being a
true copy by a duly authorised officer of the Clearing System or by a Paying Agent.
(4) Begebung weiterer Wertpapiere: Die Emittentin ist
berechtigt, bis zum 31. Mrz 2006 (einschließlich)
jederzeit und ohne Zustimmung der Emissionsglubiger weitere Wertpapiere mit gleicher Ausstattung
(gegebenenfalls mit Ausnahme des Begebungstages,
des Beginns der Verzinsung und/oder des Ausgabepreises) in der Weise zu begeben, dass sie mit den
Wertpapieren eine einheitliche Serie bildet.
(4) Further Issues of Securities: The Issuer may, until (and
including) 31 March 2006 and without the consent of
Securityholders, issue further securities having the
same terms and conditions as the Securities in all respects (or in all respects except for the date of issuance, commencement of interest and/or price of
issue) so as to form a single series of securities with
the Securities.
(5) Ersetzung von Wertpapieren: Falls eine Globalurkunde oder effektive Urkunden ber einzelne Wertpapiere oder Zinsscheine verloren gehen, gestohlen,
verstmmelt, beschdigt oder zerstrt werden, kn-
(5) Replacement of Securities: Any Global Security or
definitive certificates representing individual Securities or interest coupons which are lost, stolen, mutilated, defaced or destroyed may be replaced at the
46
nen sie bei den Geschftsstellen einer Zahlstelle
ersetzt werden, vorbehaltlich anwendbaren Rechts
und Anforderungen der Brsen. Der Anspruchsteller
erstattet diejenigen Kosten, die mit dem Austausch
verbunden sind und die aus von der Emittentin zumutbarer Weise geforderten Beweis-, Sicherheits- und
Freistellungsgrnden angefallen sind
office of a Paying Agent, subject to all applicable laws
and stock exchange requirements, upon payment by
the claimant of the expenses incurred in connection
with such replacement as a result of such terms as to
evidence, security and indemnity as the Issuer may
reasonably require.
(6) Teilunwirksamkeit: Sollte eine der Bestimmungen dieser Emissionsbedingungen ganz oder teilweise
unwirksam und undurchfhrbar sein oder werden, so
bleibt die Wirksamkeit oder die Durchfhrbarkeit der
brigen Bestimmungen hiervon unberhrt. Anstelle
der unwirksamen Bestimmung soll, soweit rechtlich
mglich, eine dem Sinn und wirtschaftlichen Zweck
dieser Emissionsbedingungen zum Zeitpunkt der
Begebung der Wertpapiere entsprechende Regelung
gelten. Unter Umstnden, unter denen sich diese
Emissionsbedingungen als unvollstndig erweisen,
soll eine ergnzende Auslegung, die dem Sinn und
Zweck dieser Emissionsbedingungen entspricht, unter
angemessener Bercksichtigung der berechtigten
Interessen der beteiligten Parteien erfolgen.
(6) Severability: Should any of the provisions of these
Terms and Conditions be or become invalid or unenforceable in whole or in part, the validity or the enforceability of the remaining provisions shall not in any
way be affected or impaired thereby. In this case the
invalid provision shall be replaced by a provision
which is, to the extent legally possible, in accordance
with the meaning and the economic purposes of the
Terms and Conditions at the time of the issue of the
Securities. In circumstances in which these Terms and
Conditions prove to be incomplete, a supplementary
interpretation in accordance with the meaning and the
purposes of these Terms and Conditions under due
considerations of the legitimate interest of the parties
involved shall be applied.
(7) Bindende Fassung: Die deutsche Fassung dieser Emissionsbedingungen ist bindend.
(7) Binding Version: The German version of these Terms
and Conditions shall be the binding version.
47
TERMS AND CONDITIONS OF THE CUMULATIVE
PROFIT PARTICIPATION SECURITIES
THE GERMAN TEXT OF THE CUMULATIVE PROFIT PARTICIPATION SECURITIES IS
LEGALLY BINDING. THE ENGLISH TRANSLATION IS FOR CONVENIENCE ONLY.
EMISSIONSBEDINGUNGEN
TERMS AND CONDITIONS
der
of the
7 150.000.000
Kumulativen Genussscheine 2005
7 150,000,000
Cumulative Profit Participation Securities 2005
der
issued by
IKB Deutsche Industriebank AG
(nachstehend als Bank bezeichnet)
IKB Deutsche Industriebank AG
(hereinafter called Bank)
§1
Definitionen und Auslegung
§1
Definitions and Interpretation
Definitionen: Sofern aus dem Zusammenhang nicht etwas
anderes hervorgeht, haben die nachstehenden Begriffe in
diesen Genussscheinbedingungen folgende Bedeutung:
Definitions: Unless the context requires otherwise, the following terms shall have the following meanings in these
terms and conditions:
Ausgabetag bezeichnet den 29. September 2005.
Issue Date shall mean 29 September 2005.
Ausgefallene Gewinnausschttung bezeichnet eine
Gewinnausschttung, welche aufgrund von § 5(3) dieser
Genussscheinbedingungen nicht gezahlt wurde.
Arrears of Profit Distribution means a Profit Distribution
which has not been paid pursuant to § 5(3) of these Terms
and Conditions.
BaFin bezeichnet die Bundesanstalt fr Finanzdienstleistungsaufsicht oder eine etwaige Nachfolgebehrde, die
an deren Stelle tritt.
BaFin means the German Financial Services Authority or
any successor agency taking its place.
Bank bezeichnet die IKB Deutsche Industriebank AG mit
Sitz in Dsseldorf und Berlin.
Bank means IKB Deutsche Industriebank AG mit Sitz, having its seat in Dsseldorf and Berlin.
Besserungsperiode hat die in § 8(2) festgelegte Bedeutung.
Recovery Period has the meaning specified in § 8(2).
Der Bilanzgewinn errechnet sich aus dem nicht konsolidierten Jahresberschuss oder Jahresfehlbetrag der
Bank, zuzglich des Gewinnvortrags aus dem Vorjahr,
abzglich des Verlustvortrags aus dem Vorjahr, zuzglich
der Entnahmen aus Kapital- und Gewinnrcklagen, abzglich der Einstellungen in Gewinnrcklagen, und zwar
jeweils in bereinstimmung und nach Maßgabe der deutschen handelsrechtlichen Rechnungslegungsvorschriften
(einschließlich des HGB) sowie sonstigen zum maßgeblichen Zeitpunkt anwendbaren deutschen Rechts.
The Balance Sheet Profit is calculated based on the Bank’s
annual unconsolidated net income or loss for the year,
plus any profits carried forward from the previous year,
minus any loss carried forward from the previous year,
plus withdrawals made from the capital reserves and
retained income, minus allocations to retained income, all
in compliance, and determined in accordance, with
accounting principles generally accepted in Germany
(including the German Commercial Code (Handelsgesetzbuch)) and other applicable German law then in effect.
Ein Bilanzverlust liegt dann vor, wenn die nicht konsolidierte Jahresbilanz der Bank nach Prfung durch eine von
der BaFin anerkannten Wirtschaftsprfungsgesellschaft
keinen Bilanzgewinn fr das Geschftsjahr ausweist auf
das sich die Gewinnausschttung bezieht.
A Balance Sheet Deficit is present if the annual unconsolidated balance sheet of the Bank, as audited by an auditing
firm recognized by the BaFin, does not show a Balance
Sheet Profit for the fiscal year to which the relevant Profit
Distribution relates.
Buchwert bezeichnet den handelsrechtlichen Buchwert
der Kumulativen Genussscheine, so wie dieser in der
Bilanz der Bank fr das jeweilige Geschftsjahr der Bank
festgestellt wurde.
Book Value means the book value of the Cumulative Profit
Participation Securities as specified in the Bank’s balance
sheet for the Bank’s respective fiscal year.
Ein Deutsches Steuerereignis liegt vor, wenn aufgrund
einer Gesetzesnderung (oder einer nderung von darunter erlassenen Bestimmungen und Vorschriften) der Bundesrepublik Deutschland oder einer ihrer Gebietskrperschaften oder einer ihrer Steuerbehrden, oder als Folge
einer nderung der offiziellen Auslegung oder Anwendung solcher Gesetze, Bestimmungen oder Vorschriften
durch eine gesetzgebende Krperschaft, ein Gericht, eine
Regierungsstelle oder eine Aufsichtsbehrde (einschließlich des Erlasses von Gesetzen sowie der Bekanntmachung gerichtlicher oder aufsichtsrechtlicher Entscheidungen), Gewinnausschttungen, die von der Bank auf die
Kumulativen Genussscheine zu zahlen sind von der Bank
A German Tax Event is present if as a result of any amendment to, or change in, the laws (or any rules or regulations
thereunder) of the Federal Republic of Germany or any
political subdivision or any taxing authority thereof or
therein, or as a result of any amendment to, or change in,
an official interpretation or application of any such laws,
rules or regulations by any legislative body, court, governmental agency or regulatory authority (including the
enactment of any legislation and the publication of any
judicial decision or regulatory determination), Profit Distributions payable by the Bank in respect of the Cumulative
Profit Participation Securities are no longer deductible by
the Bank for German corporate income tax and trade tax
48
nicht mehr fr die Zwecke der deutschen Krperschaftsund Gewerbesteuer abzugsfhig sind und die Bank dieses
Risiko nicht durch das Ergreifen zumutbarer Maßnahmen
abwenden kann.
purposes, and that risk cannot be avoided by the Bank taking such reasonable measures as it (acting in good faith)
deems appropriate.
Einzahlungsvertrag bezeichnet den am 27. September
2005 zwischen den Gesellschaftern der ProPart Funding
Limited Partnership geschlossenen ergnzenden Gesellschaftsvertrag, nach dem die Kommanditistin der ProPart
Funding Limited Partnership verpflichtet ist, der ProPart
Funding Limited Partnership smtliche Betrge zu zahlen,
die sie von den deutschen Steuerbehrden in Bezug auf
Steuererstattungsansprche erhlt.
Contribution Agreement means the supplementary partnership agreement entered into by and between the partners of ProPart Funding Limited Partnership on 27 September 2005 under which the limited partner of ProPart
Funding Limited Partnership is required to pay to ProPart
Funding Limited Partnership all amounts that it receives
from the German tax authorities on account of Tax Refund
Claims.
Erste Gewinnperiode bezeichnet den Zeitraum vom Ausgabetag (einschließlich) bis zum 31. Mrz 2006 (einschließlich).
First Profit Period means the period from (and including)
the Issue Date to (and including) 31 March 2006.
Freistellungsvereinbarung bezeichnet die Vereinbarung
zwischen der ProPart Funding Limited Partnership und der
Bank, nach der die Bank verpflichtet ist, fr etwaige im
Hinblick auf Zahlungen auf die Wertpapiere anfallende
Quellensteuern in Jersey Zahlungen an die ProPart Funding Limited Partnership zu leisten.
Indemnity Agreement means the agreement between the
Issuer and the Bank pursuant to which the Bank is obliged
to make payments to ProPart Funding Limited Partnership
in respect of withholding tax, if any, levied in Jersey in
relation to payments under the Securities.
Genussscheinbedingungen bezeichnet diese Bedingungen der Kumulativen Genussscheine.
Terms and Conditions means these terms and conditions
of the Cumulative Profit Participation Securities.
Genussscheininhaber bezeichnet die Inhaber eines Miteigentumsanteils oder -rechts an der Globalurkunde.
Holders means any holder of a proportional co ownership
participation or right in the Global Security.
Geschftstag bezeichnet jeden Tag an dem TARGET (das
Trans-European Automated Real Time Gross Settlement
Express Transfer System) Buchungen oder Zahlungsanweisungen im Hinblick auf Zahlungen in Euro abwickelt.
Business Day means a day on which TARGET (the TransEuropean Automated Real Time Gross Settlement
Express Transfer System) is operating credit or transfer
instructions in respects of payments in Euro.
Gewinnausschttung bezeichnet die in der jeweiligen
Gewinnperiode aufgelaufene Gewinnausschttung.
Profit Distribution means a profit distribution accrued in
any Profit Period.
Gewinnausschttungszahlung hat die in § 4(2) festgelegte
Bedeutung.
Profit Distribution Payment has the meaning specified in
§ 4(2).
Gewinnperiode bezeichnet (mit Ausnahme der Ersten
Gewinnperiode) jeweils den Zeitraum vom 1. April eines
Jahres (einschließlich) bis zum 31. Mrz (einschließlich)
des darauf folgenden Jahres.
Profit Period means each period (with the exception of the
First Profit Period) from (and including) 1 April of one year
to (and including) 31 March of the following year.
Globalurkunde hat die in § 2(2) festgelegte Bedeutung.
Global Security has the meaning specified in § 2(2).
Ein Gross-up-Ereignis liegt vor, wenn die Bank durch eine
gesetzgebende Krperschaft, ein Gericht oder eine Behrde in der Bundesrepublik Deutschland verpflichtet
ist oder verpflichtet sein wird, Zustzliche Betrge gemß § 9 zu zahlen und die Bank diese Verpflichtung nicht
durch das Ergreifen zumutbarer Maßnahmen abwenden
kann.
A Gross-up Event shall be present if the Bank has or will
become obliged by a legislative body, a court or any
authority in the Federal Republic of Germany to pay Additional Amounts pursuant to § 9 and that obligation cannot
be avoided by the Bank taking such reasonable measures
it (acting in good faith) deems appropriate.
Herabsetzung bezeichnet jede Herabsetzung des Rckzahlungsbetrages nach § 6(1).
Reduction means any reduction of the Repayment
Amount pursuant to § 6(1).
Ein Jahresfehlbetrag liegt dann vor, wenn die nicht konsolidierte Gewinn- und Verlustrechnung der Bank auf Grundlage der Rechnungslegungsvorschriften des deutschen
HGB nach Prfung durch eine von der BaFin anerkannte
Wirtschaftsprfungsgesellschaft keinen Jahresberschuss
fr das Geschftsjahr in Bezug auf die maßgebliche Gewinnausschttung ausweist.
A Net Loss is present if the annual unconsolidated income
statement of the Bank in accordance with the German
Commercial Code, as audited by an auditing firm which is
recognised by the BaFin, does not show a net profit for the
fiscal year to which the relevant Profit Distribution relates.
Ein Jersey-Steuerereignis liegt dann vor, wenn die Bank
verpflichtet ist, gemß der Freistellungsvereinbarung fr
etwaige im Hinblick auf Zahlungen auf die Wertpapiere
anfallende Quellensteuern in Jersey Zahlungen an die
ProPart Funding Limited Partnership zu leisten.
A Jersey Tax Event is present if the Bank is obliged to
make payments to the ProPart Funding Limited Partnership under the Indemnity Agreement in respect of withholding tax, if any, levied in Jersey in relation to payments
under the Securities.
Kumulative Genussscheine hat die in § 2(1) festgelegte
Bedeutung.
Cumulative Profit Participation Securities has the meaning specified in § 2(1).
KWG bezeichnet das Gesetz ber das Kreditwesen.
KWG means the German Banking Act.
Rckzahlungsbetrag bezeichnet entweder den Buchwert
der Kumulativen Genussscheine, so wie dieser in der
Bilanz der Bank fr das Geschftsjahr der Bank festgestellt
Repayment Amount means the lower of the book value of
the Cumulative Profit Participation Securities as shown in
the Bank’s unconsolidated balance sheet for the Bank’s fis-
49
wurde, das dem Rckzahlungstag unmittelbar voranging,
oder den Gesamtnennbetrag der Kumulativen Genussscheine, je nachdem welcher Betrag niedriger ist.
cal year immediately preceding the Repayment Date and
their aggregate nominal amount.
Rckzahlungstag bezeichnet entweder den (i) 3. August
2015 oder, falls dies kein Geschftstag ist, den darauf folgenden Geschftstag, oder (ii), falls am 2. August 2015 der
Jahresabschlusses der Bank fr das am 31. Mrz 2015
beendete Geschftsjahr noch nicht festgestellt ist, den auf
die Feststellung folgenden Geschftstag, je nachdem, welcher Tag der sptere ist.
Repayment Date means the later of (i) 3 August 2015 or, if
that is not a Business Day, the next Business Day, or (ii) if
on 2 August 2015 the Bank’s annual financial statements
for the fiscal year ended 31 March 2015 have not been
adopted, the Business Day following adoption thereof.
Steuererstattungsanspruch bezeichnet Erstattungsansprche der Kommanditistin der ProPart Funding Limited
Partnership gegen die deutschen Finanzbehrden, die aufgrund der folgenden Umstnde erwartet werden: Bei Zahlung von Gewinnausschttungszahlungen an die ProPart
Funding Limited Partnership und Wiederauffllungen
nach einer Herabsetzung des Buchwerts der Kumulativen
Genussscheine nach Maßgabe dieser Genussscheinbedingungen ist die Bank verpflichtet, Kapitalertragsteuer auf
die ausgeschtteten bzw. zur Auffllung verwendeten
Betrge einzubehalten. Soweit diese Einbehalte nach
deutschem Steuerrecht der Kommanditistin der ProPart
Funding Limited Partnership zuzurechnen sind, gelten sie
als Vorauszahlungen auf die von der Kommanditistin der
ProPart Funding Limited Partnership geschuldete deutsche Einkommensteuer.
Tax Refund Claim means refund claims against the German tax authorities to which the limited partner of the ProPart Funding Limited Partnership is expected to be entitled
as a consequence of the following circumstances: Upon
payment of Profit Distribution Payments to the ProPart
Funding Limited Partnership and replenishments after a
reduction of the Book Value of the Cumulative Profit Participation Securities in accordance with these terms and
conditions, the Bank must withhold German investment
income tax on the amounts distributed or used for replenishment. These withholdings, to the extent attributable to
the limited partner of ProPart Funding Limited Partnership
in accordance with German tax laws, will be counted as
prepayments towards the German income tax owed by
the limited partner of ProPart Funding Limited Partnership.
Ein Steuer-Rckerstattungsereignis liegt vor, wenn insbesondere aufgrund einer Gesetzesnderung (oder einer
nderung von darunter erlassenen Bestimmungen und
Vorschriften) in der Bundesrepublik Deutschland oder
einer ihrer Gebietskrperschaften oder einer ihrer Steuerbehrden, oder als Folge einer nderung der offiziellen
Auslegung oder Anwendung solcher Gesetze, Bestimmungen oder Vorschriften durch eine gesetzgebende Krperschaft, ein Gericht, eine Regierungsstelle oder eine
Aufsichtsbehrde (einschließlich des Erlasses von Gesetzen sowie der Bekanntmachung gerichtlicher oder aufsichtsrechtlicher Entscheidungen) die Kommanditistin der
ProPart Funding Limited Partnership keine Anrechnung
bzw. Rckerstattung des vollstndigen Betrages der
gezahlten deutschen Kapitalertragsteuer (einschließlich
des Solidarittszuschlages) erhlt (und dementsprechend
auch keine Zahlungen an die ProPart Funding Limited
Partnership unter dem Einzahlungsvertrag zu erfolgen
haben) und die Kommanditistin der ProPart Funding
Limited Partnership oder die ProPart Funding Limited Partnership dieses Risiko nicht durch das Ergreifen zumutbarer Maßnahmen abwenden knnen.
A Tax Refund Event is present if (in particular) as a result of
any amendment to, or change in, the laws (or any rules or
regulations thereunder) of the Federal Republic of Germany or any political subdivision or any taxing authority
thereof or therein, or as a result of any amendment to, or
change in, an official interpretation or application of any
such laws, rules or regulations by any legislative body,
court, governmental agency or regulatory authority
(including the enactment of any legislation and the publication of any judicial decision or regulatory determination) the limited partner of ProPart Funding Limited Partnership does not receive tax credit or refund for the full
amount of German withholding tax (including solidarity
surcharge (Solidarittszuschlag)) paid (and, therefore, no
payments have to be made to ProPart Funding Limited
Partnership under the Contribution Agreement), and that
risk cannot be avoided by the limited partner of ProPart
Funding Limited Partnership or ProPart Funding Limited
Partnership taking such reasonable measures as them
(acting in good faith) deem appropriate.
Wertpapiere bezeichnet die von der ProPart Funding
Limited Partnership am 29. September 2005 begebenen
5 150.000.000 befristeten Ergnzungskapital-Wertpapiere.
Securities means the 5 150,000,000 Dated Upper Tier 2
Securities issued by ProPart Funding Limited Partnership
on 29 September 2005.
Zinsberechnungsmethode bezeichnet die Berechung von
Zinsen fr einen krzeren Zeitraum als ein Jahr auf Grundlage der Anzahl der tatschlich vergangenen Tage des
Zinsberechnungszeitraums geteilt durch die Anzahl der
Tage (365 oder 366) in dem jeweiligen Zinsjahr.
Interest Calculation Method refers to the calculation of interest for a period of less than one year on the basis of the
actual number of days in such period divided by the actual
number of days (365 or 366) in the relevant interest year.
Zustzliche Betrge hat die in § 9 festgelegte Bedeutung.
Additional Amounts has the meaning specified in § 9.
Zustzliche Rckzahlungsbetrge sind die unter den Voraussetzungen des § 8(2) zu zahlenden zustzlichen Betrge.
Additional Repayment Amounts are additional amounts
payable under § 8(2), if any.
Zustzliche Rckzahlungstage sind entweder (i) der 3. August des jeweiligen Jahres, in dem ein Zustzlicher Rckzahlungsbetrag zahlbar ist, oder, falls dies kein Geschftstag ist, der darauffolgende Geschftstag, oder (ii) falls am
2. August des Jahres, in dem ein Zustzlicher Rckzahlungsbetrag zahlbar ist, der Jahresabschluss der Bank fr
das am 31. Mrz dieses Jahres beendete Geschftsjahr
noch nicht festgestellt ist, den auf die Feststellung fol-
Additional Repayment Dates means the later of (i)
3 August of each year in which an Additional Repayment
Amount is payable or, if that is not a Business Day, the
next Business Day, or (ii) if on 2 August of the year in
which an Additional Repayment Amount is payable the
Bank’s annual financial statements for the fiscal year
ended on 31 March of such year have not been adopted,
the Business Day following adoption thereof.
50
genden Geschftstag, je nachdem, welcher Tag der sptere ist.
§2
Stckelung; Verbriefung und Verwahrung;
bertragbarkeit
§2
Denomination; Form and Custody,
Transferability
(1) Ausgabe und Stckelung: Die IKB Deutsche Industriebank AG (Bank) begibt aufgrund der von der Hauptversammlung am 30. August 2002 erteilten Ermchtigung unter Ausschluss des Bezugsrechts der Aktionre und mit Zustimmung des Aufsichtsrats Genussscheine im Gesamtnennbetrag von 5 150.000.000 (in
Worten: Euro einhundertfnfzig Millionen). Die Emission ist eingeteilt in 3.000 untereinander gleichrangige
Genussscheine mit einem Nennbetrag von jeweils
5 50.000 (die Kumulativen Genussscheine).
(1) Issuance and Denomination: IKB Deutsche Industriebank AG, Dsseldorf and Berlin (Bank) hereby issues
pursuant to the authorization granted by the shareholder meeting on 30 August 2002, under exclusion of
subscription rights of shareholders and with the consent of the supervisory board, profit participation
securities in the aggregate nominal amount of
5 150,000,000 (in words: euro one hundred fifty million). The issue is divided into 3,000 profit participation securities, ranking pari passu among themselves,
in the nominal amount of 5 50,000 each (the Cumulative Profit Participation Securities).
(2) Verbriefung: Die Kumulativen Genussscheine werden
durch eine auf den Inhaber lautende Globalurkunde
(die Globalurkunde) ohne Zinsscheine verbrieft. Die
Globalurkunde ist nur wirksam, wenn sie die eigenhndigen Unterschriften zweier durch die Bank bevollmchtigter Personen trgt.
(2) Form: The Cumulative Profit Participation Securities
are represented by a global bearer security (the Global
Security) without interest coupons. The Global Security shall only be valid if it bears the hand written signatures of two duly authorised representatives of the
Bank.
(3) Effektive Kumulative Genussscheine: Die Ausgabe
effektiver Einzelurkunden fr die Kumulativen Genussscheine wird ausgeschlossen. Falls die Bank (aus welchem Grund auch immer) rechtlich verpflichtet sein
sollte, effektive Kumulative Genussscheine auszugeben, wird die Globalurkunde in effektive Kumulative
Genussscheine ausgetauscht. In diesem Fall werden
Kumulative Genussscheine in effektiven Inhaberurkunden ausgegeben, die entweder mit Zinsscheinen
versehen sind, oder bei denen der Nachweis der Zinszahlung auf einem Abschnitt der Urkunde vermerkt
wird.
(3) Definitive Cumulative Profit Participation Securities:
The issuance of definitive Cumulative Profit Participation Securities shall be excluded. If, for any reason, the
Bank becomes legally obliged to issue Cumulative
Profit Participation Securities in definitive form, the
Global Security will be exchanged for Cumulative
Profit Participation Securities in definitive bearer
form. In this case, Cumulative Profit Participation
Securities in definitive bearer form will be issued
which will either have coupons attached or have a grid
for recording the coupon payments endorsed thereon.
§3
Rang der Kumulativen Genussscheine,
Ausschluss der Aufrechnung
§3
Ranking of the Cumulative Profit Participation Securities,
No Right of Set-Off
(1) Die Zahlungsverpflichtungen der Bank aufgrund dieser Kumulativen Genussscheine sind:
(1) The Bank’s obligations under these Cumulative Profit
Participation Securities:
(a) nachrangig gegenber Forderungen aller bestehenden und knftigen Glubiger der Bank (mit Ausnahme der unter (b) und (c) genannten Glubiger);
(a) are subordinated to the claims of all existing and
future creditors of the Bank (but excluding the
creditors referred to under (b) and (c) below);
(b) (prozentual zum flligen Betrag) mindestens
gleichrangig mit allen Forderungen auf Rckzahlung von und Ausschttungen auf Genussrechte(n) oder Genussscheine(n) und ggf. anderer
Kapitalinstrumente des Ergnzungskapitals, sowie
sonstiger nachrangiger Verbindlichkeiten gemß
§ 10(5) und (5a) KWG; und
(b) rank at least pari passu (by percentage of the
amount payable) with all claims for distributions
under or the repayment of capital contributions
made with respect to profit participation rights in
the form of Genussrechte or Genussscheine, and
other upper tier 2 capital instruments, if any, and
any other subordinated debt in accordance with
§ 10(5) and (5a) KWG; and
(c) vorrangig vor allen Forderungen auf Rckzahlung
von und Ausschttungen auf nachrangige Verbindlichkeiten gemß § 10(4) KWG sowie allen
Forderungen von Anteilseignern der Bank im
Zusammenhang mit ihren Anteilen am Stammkapital der Bank;
(c) rank senior to all claims for distributions under or
the repayment of capital contributions made with
respect to any subordinated debt in accordance
with 10(4) KWG and all claims of shareholders of
the Bank in connection with their shares in the
statutory capital of the Bank;
soweit diese jeweils bereits begrndet wurden oder in
Zukunft begrndet werden.
in each case as already arisen or arising in the future.
(2) Die Genussscheininhaber sind nicht berechtigt, Forderungen aus den Kumulativen Genussscheinen mit
mglichen Forderungen der Bank gegen sie aufzurechnen. Die Bank ist nicht berechtigt, Forderungen
gegenber den Genussscheininhabern mit den Ver-
(2) No Holder shall be entitled to set off any claims arising
under the Cumulative Profit Participation Securities
against any claims that the Bank may have against it.
The Bank may not set off any claims it may have
against any Holder against any of its obligations
51
bindlichkeiten aus den Kumulativen Genussscheinen
aufzurechnen.
under the Cumulative Profit Participation Securities.
§4
Gewinnausschttung auf die Kumulativen
Genussscheine
§4
Profit Distribution on the Cumulative Profit
Participation Securities
(1) Allgemeines: Als Gegenleistung fr die Bereitstellung
des Genusssrechtskapitals stehen den Genussscheininhabern vom Ausgabetag (einschließlich) bis zum
Rckzahlungstag (ausschließlich) und vorbehaltlich
der Bestimmungen von § 5 Gewinnausschttungen
zu, deren Hhe sich nach Maßgabe dieses § 4 bestimmt.
(1) General: In consideration for the provision of the profit
participating capital, the Holders shall be entitled, subject to the provisions of § 5, to Profit Distributions
from (and including) the Issue Date to (but excluding)
the Repayment Date in the amounts specified in this
§ 4.
(2) Gewinnausschttung: Den Genussrechtsinhabern stehen Gewinnausschttungen (i) in Hhe von 5 1.658,65
je Kumulativem Genussschein fr die Erste Gewinnperiode, und (ii) in Hhe von 3,8640 % p. a. auf den
Nennbetrag des Kumulativen Genussscheins fr
Gewinnperioden nach der Ersten Gewinnperiode zu.
(2) Profit Distribution: The Holders shall be entitled to
Profit Distributions (i) in the amount of 5 1,658.65 per
Cumulative Profit Participation Security for the First
Profit Period, and (ii) at a rate, calculated by reference
to the Nominal Amount of the Cumulative Profit Participation Security of 3.8640 per cent. per annum for any
Profit Periods after the First Profit Period.
(3) Berechnung unterjhriger Gewinnausschttungen:
Gewinnausschttungen fr einen Zeitraum von weniger als einem Jahr (mit Ausnahme der Ersten Gewinnperiode) werden auf Grundlage der Zinsberechnungsmethode berechnet.
(3) Calculation of short Profit Distributions: Profit Distributions accrued for less than one year (other than for
the First Profit Period) shall be calculated on the basis
of the Interest Calculation Method.
§5
Zahlung der Gewinnausschttungen, Zahlungsaufschub,
Verfall von Gewinnausschttungen
§5
Profit Distribution Payments, Deferral of Payment,
Extinction of Profit Distribution Payments
(1) Flligkeit von Gewinnausschttungen: Vorbehaltlich
der Bestimmungen von § 5(3) bis (5), wird jede
Gewinnausschttung zur Zahlung fllig entweder (i)
am 3. August eines Jahres nach Ablauf der maßgeblichen Gewinnperiode oder, falls dies kein Geschftstag
ist, am darauf folgenden Geschftstag, oder (ii), falls
an dem 2. August, der auf das Ende der maßgeblichen
Gewinnperiode folgt, der Jahresabschlusses der Bank
fr das Geschftsjahr, auf das sich die maßgebliche
Gewinnperiode bezieht, noch nicht festgestellt ist, an
dem auf die Feststellung folgenden Geschftstag, je
nachdem, welcher Tag der sptere ist (jeweils eine
Gewinnausschttungszahlung).
(1) Payment of Profit Distributions: Subject to § 5(3)
through (5), each Profit Distribution shall be payable
on the later of (i) 3 August following the end of the
relevant Profit Period or, if that is not a Business Day,
the next Business Day, or (ii) if on 2 August following
the end of the relevant Profit Period the Bank’s annual
financial statements for the fiscal year to which the
Profit Period relates have not been adopted, the Business Day following adoption thereof (each a Profit Distribution Payment).
(2) Zahlung an Geschftstagen; kein Ausgleich bei verspteter Zahlung: Falls der Tag, an dem eine Gewinnausschttungszahlung nach Maßgabe des § 5(1) fllig
wird, kein Geschftstag ist, verschiebt sich die Flligkeit auf den nchstfolgenden Geschftstag; aufgrund
einer solchen Verschiebung erfolgt keine Zahlung von
Zinsen und keine Zahlung von weiteren Gewinnausschttungen.
(2) Payment on Business Days; no Compensation for Late
Payment: If a day on which a Profit Distribution Payment under § 5(1) falls due is not a Business Day, payment shall be postponed to the next following Business Day; no interest or further Profit Distribution will
accrue or be payable as a result of such postponement.
(3) Ausschluss der Gewinnausschttung: Eine Gewinnausschttung fr eine Gewinnperiode (einschließlich
der Ersten Gewinnperiode) ist ausgeschlossen:
(3) Profit Distributions excluded: Profit Distributions for
any Profit Period (including the First Profit Period)
shall be excluded:
(a) falls und soweit eine solche Zahlung, ggf. unter
Bercksichtigung der Nachzahlung von Ausgefallenen Gewinnausschttungen gemß § 5(4), zu
einem Bilanzverlust in dem Geschftsjahr der
Bank, auf das sich die maßgebliche Gewinnperiode bezieht, fhren oder diesen erhhen
wrde; oder
(a) if and to the extent that payment of such Profit Distribution would, also taking into account the payment of Arrears of Profit Distributions as provided
for in § 5(4), lead to or increase a Balance Sheet
Deficit for the fiscal year of the Bank to which the
relevant Profit Period relates; or
(b) wenn eine Herabsetzung der Kumulativen Genussscheine erfolgt ist noch keine vollstndige
Heraufschreibung gemß § 6(3) stattgefunden hat.
(b) if a Reduction has occurred and the Cumulative
Profit Participation Securities have not yet been
fully replenished as provided for in § 6(3).
(4) Nachzahlung Ausgefallener Gewinnausschttung:
Ausgefallene Gewinnausschttungen sind aus den
Bilanzgewinnen nachfolgender Gewinnperioden, die
dem Rckzahlungstag vorausgehen, nachzuzahlen.
(4) Payment of Arrears of Profit Distributions: Arrears of
Profit Distributions shall be paid out of Balance Sheet
Profits of subsequent Profit Periods prior to the Repayment Date. The payment of Arrears of Profit Distribu-
52
Die Nachzahlung erfolgt am Rckzahlungstag fr die
Gewinnausschttungszahlung der jeweils nchsten
Gewinnperiode, in der ein Bilanzgewinn zur Verfgung steht. Reicht der Bilanzgewinn der jeweils letzten
Gewinnperiode zur Zahlung der Ausgefallenen
Gewinnausschttungen sowie der Gewinnausschttung fr die jeweils letzte Gewinnperiode nicht aus,
erfolgen Zahlungen zunchst auf die Ausgefallenen
Gewinnausschttungen und erst danach auf die
Gewinnausschttung. Ausgefallene Gewinnausschttungen werden nicht verzinst.
tions shall be made on the due date for the Profit Distribution Payment in respect of the respective next
Profit Period for which a Balance Sheet Profit is available. Should such Balance Sheet Profit be insufficient
for the payment of the Arrears of Profit Distribution
and the Profit Distribution for the respective last Profit
Period, payment shall first be made on the Arrears of
Profit Distributions before any payment is made in respect of such Profit Distribution for the respective last
Profit Period. Arrears of Profit Distributions shall not
bear interest.
(5) Verfall von Ausgefallenen Gewinnausschttungen und
der Gewinnausschttung fr die letzte Gewinnperiode: Ausgefallene Gewinnausschttungen und die
Gewinnausschttung fr die letzte Gewinnperiode,
die aufgrund der Bestimmungen von § 5(3) und (4)
nicht sptestens am Rckzahlungstag gezahlt werden,
verfallen am Rckzahlungstag endgltig. Ein derartiger Verfall stellt keinen Verzug und keine Pflichtverletzung der Bank fr irgendeinen Zweck dar.
(5) Extinction of Arrears of Profit Distributions and the
Profit Distribution for the last Profit Period: Arrears of
Profit Distributions and the Profit Distribution for the
last Profit Period which are not paid on the Repayment
Date due to the restrictions set forth in § 5(3) and (4)
shall be extinguished on the Repayment Date. Such
extinction shall not constitute a default or a breach of
obligations on the part of the Bank for any purpose.
§6
Verlustbeteiligung
§6
Sharing of Losses
(1) Verlustbeteiligung: An einem Bilanzverlust nehmen
die Kumulativen Genussscheine im Verhltnis ihres
Buchwerts zum Gesamtbuchwert aller am Bilanzverlust teilnehmenden Kapitalanteile der Bank und untereinander gleichrangig durch Herabsetzung ihres Rckzahlungsbetrages teil.
(1) Sharing in Losses: The Cumulative Profit Participation
Securities shall share in a Balance Sheet Deficit on a
pari passu basis among themselves in the proportion
which their book value bears in relation to the aggregate book value of all components of the Bank’s liable
capital sharing in the Balance Sheet Profit by a corresponding reduction of the Repayment Amount.
(2) Begrenzung der Verlustbeteiligung auf Nennbetrag:
Die Gesamtverlustbeteiligung der Kumulativen Genussscheine ist auf ihren Nennbetrag beschrnkt.
(2) Limitation of Sharing in Losses to Nominal Amount:
The Cumulative Profit Participation Securities’ aggregate share in all Balance Sheet Deficits shall be limited
to their nominal amount.
(3) Gutschrift nach Verlustbeteiligung: Nach einer Herabsetzung wird der Buchwert der Kumulativen Genussscheine in jedem der Herabsetzung nachfolgenden
Geschftsjahr der Bank bis zum Ablauf der Besserungsperiode bis zur vollstndigen Hhe ihres Nennbetrages wieder hochgeschrieben, soweit hierdurch
kein Jahresfehlbetrag entsteht oder erhht wrde.
(3) Replenishment after Reduction: After a Reduction, the
book value of the Cumulative Profit Participation Securities shall, in each fiscal year of the Bank following
such Reduction up to the end of the Recovery Period,
be replenished up to their full nominal amount, but
only if and to the extent such replenishment would
not cause or increase a Net Loss.
Die Gutschrift nach einer Herabsetzung geht der Rckfhrung des Stammkapitals und Einstellungen in die
Rcklagen (mit Ausnahme der gesetzlichen Rcklage)
der Bank und, gemß der Bedingungen der bestehenden stillen Beteiligungen an der Bank, die in den Jahren 2002 und 2004 ausgegeben wurden, der Rckfhrung von Kapital, das aufgrund dieser stillen Beteiligungen bereitgestellt wurde, vor. Im Verhltnis zu
anderen Kapitalgebern nach § 10(4) KWG (Vermgenseinlagen stiller Gesellschafter) erfolgt die Rckfhrung
des Buchwerts der Kumulativen Genussscheine vorrangig, wenn die Bedingungen dieser Kapitalanlagen
dies vorsehen. Ist dies nicht der Fall und gegenber
anderen Kapitalgebern nach § 10(5) KWG (Genussrechte) erfolgt die Gutschrift gemß diesem § 6(3) in
der gleichen Reihenfolge und im gleichen Verhltnis
wie die Verlustbeteiligung.
The replenishment after a Reduction ranks senior to
the replenishment of the Bank’s share capital and to
allocations to reserves (with the exception of the statutory reserve) and, according to the terms of the existing silent partnership interests issued by the Bank in
2002 and 2004, to the replenishment of capital provided thereunder. In relation to other capital providers
in accordance with § 10(4) KWG (silent participations),
the replenishment on the book value of the Cumulative Profit Participation Securities will rank senior if
the terms of such instruments provide therefor. If not
and in relation to other capital providers in accordance
with and § 10(5) KWG (profit participation rights in the
form of Genussrechte and Genussscheine), the replenishment pursuant to this § 6(3) shall be effected in the
same priority and in the same proportion as the sharing of losses.
(4) Keine Pflicht zur Aufdeckung von stillen Reserven
oder der Auflsung bilanzieller Rcklagen: Die Bank
ist nicht verpflichtet, zur Vermeidung eines Jahresfehlbetrags oder eines Bilanzverlusts stille Reserven aufzudecken oder bilanzielle Rcklagen aufzulsen.
(4) No Obligation to Realise Hidden Reserves or to make
Withdrawals from On-balance Sheet Reserves: The
Bank shall not be obliged to realise hidden reserves or
to make withdrawals from on-balance sheet reserves
in order to avoid a Net Loss or a Balance Sheet Deficit.
§7
Keine Gesellschafterrechte
§7
No Shareholder Rights
Den Genussscheininhabern stehen keine GesellschafterRechte, insbesondere keine Teilnahme-, Mitwirkungs- und
The Holders shall have no shareholder rights, in particular
no rights to participate, engage in or vote in the Bank’s
53
Stimmrechte in der Hauptversammlung der Bank zu. Die
Kumulativen Genussscheine gewhren keinen Anteil am
Liquidationserls.
shareholder meeting. The Cumulative Profit Participation
Securities do not convey any right in a liquidation surplus.
§8
Laufzeit der Kumulativen Genussscheine,
Rckzahlung, Kndigung
§8
Term of the Cumulative Profit Participation Securities,
Redemption, Termination
(1) Laufzeit und Rckzahlung: Die Laufzeit der Kumulativen Genussscheine ist bis zum 31. Mrz 2015 befristet.
Der Rckzahlungsbetrag ist am Rckzahlungstag an
die Genussscheininhaber zurckzuzahlen. Der Rckzahlungsbetrag wird nicht verzinst.
(1) Term: The term of the Cumulative Profit Participation
Securities ends on 31 March 2015. The Repayment
Amount shall be repaid to the Holders on the Repayment Date. The Repayment Amount shall not bear interest.
(2) Zustzliche Rckzahlungsbetrge: Falls der am Rckzahlungstag zu zahlende Rckzahlungsbetrag niedriger ist als der Gesamtnennbetrag der Kumulativen
Genussscheine, stehen den Genussscheininhabern
Zustzliche Rckzahlungsbetrge bis zur Hhe der Differenz zwischen dem Rckzahlungsbetrag und dem
Gesamtnennbetrag der Kumulativen Genussscheine
zu, falls und soweit in einem der vier auf das Ende der
Laufzeit der Kumulativen Genussscheine folgenden
Geschftsjahre der Bank (die Besserungsperiode) die
Voraussetzung einer Gutschrift gemß § 6(3) vorliegen. Etwaige Zustzliche Rckzahlungsbetrge sind
an dem jeweiligen Zustzlichen Rckzahlungstag zu
zahlen. Etwaige Zustzliche Rckzahlungsbetrge werden nicht verzinst.
(2) Additional Repayment Amounts: If the Repayment
Amount is less than the nominal amount of the Cumulative Profit Participation Securities, the Holders are
entitled to Additional Repayment Amounts up to the
amount of the difference between the Redemption
Amount and the nominal amount of the Cumulative
Profit Participation Securities, if and to the extent the
requirements for a replenishment in accordance with
§ 6(3) are met in one or more of the four fiscal years of
the Bank following the end of the term of the Cumulative Profit Participation Securities (the Recovery Period). Any Additional Repayment Amounts are payable on the relevant Additional Repayment Date. Additional Repayment Amounts, if any, shall not bear interest.
(3) Kndigung durch die Bank wegen Deutsches Steuerereignis, Jersey-Steuerereignis oder Steuer-Rckerstattungsereignis: Wenn ein Deutsches Steuerereignis, ein Jersey-Steuerereignis oder ein Steuer-Rckerstattungsereignis eingetreten ist, ist die Bank berechtigt, die Kumulativen Genussscheine unter
Einhaltung einer Kndigungsfrist von mindestens
zwei Jahren, frhestens jedoch zum 31. Mrz 2011,
durch Mitteilung nach Maßgabe des § 13 zu kndigen.
In diesen Fllen ist der Rckzahlungstag entweder
(i) der 3. August des Jahres, welcher auf das Wirksamwerden der Kndigung folgt oder, falls dies kein
Geschftstag ist, der darauf folgende Geschftstag,
oder (ii), falls an dem 2. August des betreffenden Jahres der Jahresabschluss der Bank fr das am vorherigen 31. Mrz beendete Geschftsjahr noch nicht festgestellt ist, der auf die Feststellung folgende Geschftstag, je nachdem, welcher Tag der sptere ist.
Die Verzinsungsregelung des § 8(1) gilt in diesen Fllen entsprechend.
(3) Termination by the Bank in case of a German Tax
Event, a Jersey Tax Event or a Tax Refund Event: If a
German Tax Event, a Jersey Tax Event or a Tax Refund
Event has occurred, the Bank may call the Cumulative
Profit Participation Securities for redemption at any
time, but in no event as of any date prior to 31 March
2011, by giving not less than two years’ prior notice accordance with § 13. In these events, the Repayment
Date shall be the later of (i) the 3 August following the
effective date for the notice or, if that is not a Business
Day, the next Business Day, or (ii) if on 2 August of the
relevant year the Bank’s annual financial statements
for the Bank’s fiscal year having ended on the preceding 31 March have not been adopted, the Business
Day following adoption thereof. The provisions of
§ 8(1) as to interest on the Redemption Amount shall
apply accordingly.
(4) Kndigung durch die Bank wegen Gross-up-Ereignis:
Die Bank ist berechtigt, die Kumulativen Genussscheine jederzeit unter Einhaltung einer Kndigungsfrist von mindestens 30 Tagen und hchstens 60 Tagen
durch Erklrung nach Maßgabe des § 13 gegenber
den Genussscheininhabern mit sofortiger Wirkung zu
kndigen, wenn ein Gross-up-Ereignis eingetreten ist.
Dieses Kndigungsrecht steht unter der Bedingung
dass (i) die Bank die Kumulativen Genussscheine
durch die Einzahlung anderen, mindestens gleichwertigen haftenden Eigenkapitals im Sinne des KWG
ersetzt, oder (ii) die BaFin der vorzeitigen Rckzahlung
vorher zustimmt.
(4) Termination by the Bank in case of a Gross-up Event:
The Bank may call the Cumulative Profit Participation
Securities for redemption at any time, with immediate
effect by giving not less than 30 days and not more
than 60 days’ prior notice to the Paying Agent and the
Holders in accordance with § 13 if a Gross-up-Event
has occurred. This termination right is conditional
upon (i) the Bank replacing the Cumulative Profit Participation Securities with other, at least equivalent regulatory banking capital (haftendes Eigenkapital) within
the meaning of the KWG, or (ii) prior approval of the
BaFin to such early redemption.
(5) Ausschluss der Kndigung aufgrund bestimmter
Ereignisse: Von Verschmelzungen, Umwandlungen
oder nderungen des Grundkapitals der Bank bleibt
der Bestand der Kumulativen Genussscheine unberhrt.
(5) No termination by virtue of certain events: The Cumulative Profit Participation Securities shall remain unaffected by mergers, conversions or changes in the
share capital of the Bank.
(6) Ausschluss von Kndigungsrechten der Genussscheininhaber: Die Genussscheininhaber sind zur
Kndigung der Kumulativen Genussscheine nicht
berechtigt.
(6) Exclusion of Holders’ Termination Right: The Holders
are not entitled to terminate the Cumulative Profit Participation Securities.
54
§9
Steuern
§9
Taxes
Smtliche auf die Kumulativen Genussscheine zu zahlenden Betrge sind ohne Einbehalt oder Abzug von oder
aufgrund von gegenwrtigen oder zuknftigen Steuern
oder sonstigen Abgaben gleich welcher Art zu leisten, von
oder fr Rechnung einer politischen Untergliederung oder
Steuerbehrde von oder in der Bundesrepublik Deutschland auferlegt oder erhoben werden, es sei denn, ein solcher Einbehalt oder Abzug ist gesetzlich vorgeschrieben.
In diesem Fall wird die Bank diejenigen zustzlichen
Betrge (Zustzlichen Betrge) zahlen, die erforderlich
sind, damit die den Genussscheininhabern zufließenden
Nettobetrge nach diesem Einbehalt oder Abzug jeweils
den Betrgen entsprechen, die ohne einen solchen Einbehalt oder Abzug von den Genussscheininhabern empfangen worden wren; die Verpflichtung zur Zahlung solcher
zustzlicher Betrge besteht jedoch nicht im Hinblick auf
Steuern und Abgaben, die:
All amounts payable in respect of the Cumulative Profit
Participation Securities shall be made without withholding or deduction for or on account of any present or future
taxes or duties of whatever nature imposed or levied by
way of withholding or deduction by or in or for the
account of the Federal Republic of Germany or any political subdivision or any authority thereof or therein having
power to tax unless such withholding or deduction is
required by law. In such event, the Bank will pay such
additional amounts (Additional Amounts) as shall be
necessary in order that the net amounts received by the
Holders, after such withholding or deduction shall equal
the respective amounts which would otherwise have
been receivable by the Holders in the absence of such
withholding or deduction; except that no such Additional
Amounts shall be payable on account of any taxes or
duties which:
(1) auf andere Weise als durch Einbehalt oder Abzug von
zahlbaren Betrgen zu entrichten sind; oder
(1) are payable otherwise than by withholding or deduction from amounts payable; or
(2) wegen einer gegenwrtigen oder frheren persnlichen oder geschftlichen Beziehung des Emissionsglubigers zur Bundesrepublik Deutschland zu zahlen
sind, und nicht allein deshalb, weil Zahlungen auf die
Kumulativen Genussscheine aus Quellen in der Bundesrepublik Deutschland stammen (oder fr Zwecke
der Besteuerung so behandelt werden) oder dort besichert sind; oder
(2) are payable by reason of the Holder having, or having
had some personal or business connection with the
Federal Republic of Germany and not merely by reason of the fact that payments in respect of the Cumulative Profit Participation Securities are, or for purposes
of taxation are deemed to be, derived from sources in,
or are secured in, the Federal republic of Germany; or
(3) aufgrund einer Richtlinie der Europischen Union
betreffend die Besteuerung von Zinsertrgen, die die
Schlussfolgerungen des Treffens des ECOFIN-Rates
vom 26.-27. November 2000 umsetzt, oder aufgrund
einer gesetzlichen Vorschrift, die diese Richtlinie
umsetzt oder befolgt oder erlassen wurde, um der
Richtlinie zu entsprechen, von Zahlungen an eine
natrliche Person einzubehalten oder abzuziehen
sind; oder
(3) are to be withheld or deducted from a payment to an
individual pursuant to any European Union Directive
on the taxation of savings implementing the conclusions of the ECOFIN Council meeting of 26–27 November 2000 or any law implementing or complying with,
or introduced in order to conform to, such Directive; or
(4) aufgrund einer Rechtsnderung zu zahlen sind, welche
spter als 30 Tage nach Flligkeit der betreffenden
Zahlung von Kapital oder Zinsen oder, wenn dies spter erfolgt, ordnungsgemßer Bereitstellung aller flligen Betrge und einer diesbezglichen Bekanntmachung nach Maßgabe von § 15 wirksam wird; oder
(4) are payable by reason of a change in law that becomes
effective more than 30 days after the relevant payment
of principal or interest becomes due, or is duly provided for and notice thereof is published in accordance with § 15, whichever occurs later; or
(5) von einer Zahlstelle abgezogen oder einbehalten werden, wenn eine andere Zahlstelle in einem EU-Mitgliedstaat die Zahlung ohne einen solchen Abzug
oder Einbehalt htte leisten knnen.
(5) are deducted or withheld by a Paying Agent from a
payment if the payment could have been made by
another Paying Agent in an EU member state without
such deduction or withholding.
§ 10
Zahlungen
§ 10
Payments
(1) Befreiende Zahlung an ein Clearing System: Fr den
Fall, dass die Globalurkunde bei einem Clearing
System hinterlegt wurde, verpflichtet sich die Bank,
Zahlungen auf die Kumulativen Genussscheine bei
Flligkeit in Euro an das Clearing System oder dessen
Order zur Gutschrift auf den Konten der jeweiligen
Kontoinhaber bei dem Clearing System zu zahlen. Vorbehaltlich § 9(3) wird die Bank durch Leistung der Zahlung an das Clearing System oder dessen Order in
Hhe der geleisteten Zahlung von ihrer Zahlungspflicht befreit. Ansonsten leistet die Bank Zahlungen
an den Inhaber der Globalurkunde gegen Vorlage und
Aushndigung der Globalurkunde (oder, allein im
Falle von Teilzahlungen, durch Indossament).
(1) Discharge by Payment to a Clearing System: In case
the Global Security has been deposited with a clearing
system, the Bank undertakes to pay, as and when due,
amounts due on Cumulative Profit Participation Securities in Euro to the Clearing System or to its order for
credit to the relevant accountholders of the Clearing
System. Subject to § 9(3), upon effecting the payment
to the Clearing System or to its order, the Bank shall
be released from its payment obligation in the amount
of the payment effected. In all other cases, the Bank
will make payment to the holder of the Global Security
against presentation and surrender (or, in the case of
part payment only, endorsement) of the Global Security.
(2) Zahlung an Geschftstagen: Falls eine Zahlung auf die
Kumulativen Genussscheine an einem Tag zu leisten
ist, der kein Geschftstag ist, so erfolgt die Zahlung
(2) Payment on Business Days: If any payment of any
amount with respect to Cumulative Profit Participation
Securities is to be effected on a day other than a Busi-
55
am nchstfolgenden Geschftstag. In diesem Fall steht
den Genussscheininhabern weder ein Zahlungsanspruch noch ein Anspruch auf Zinszahlungen oder
eine andere Entschdigung wegen dieser Verzgerung
zu.
ness Day, payment shall be effected on the next following Business Day. In this case, the Holders shall
neither be entitled to any payment claim nor to any interest claim or other compensation with respect to
such delay.
§ 11
Hinweis gemß § 10(5) S. 1 Ziff. 6 KWG
§ 11
Notice in Accordance with § 10(5) p. 1 no. 6 KWG
(1) Verbot nachtrglicher nderungen zum Nachteil der
Bank: Nach Ausgabe der Kumulativen Genussscheine
drfen (i) weder die Verlustbeteiligung zum Nachteil
der Bank verndert, (ii) noch die Nachrangigkeit eingeschrnkt noch (iii) die Laufzeit oder Kndigungsfrist
verkrzt werden.
(1) Exclusion of Amendments to the Bank’s Detriment:
After issuance of the Cumulative Profit Participation
Securities, (i) their loss participation may not be
amended to the Bank’s detriment, (ii) their subordination may not be limited and (iii) neither their term nor
their notice period may be shortened.
(2) Rckzahlungsverpflichtung: Ungeachtet anderweitiger Vereinbarungen sind vorzeitige Rckzahlungen
auf die Kumulativen Genussscheine an die Bank
zurckzuzahlen, es sei denn, (i) das Kapital wurde
durch anderes mindestens gleichwertiges Eigenkapital ersetzt oder (ii) die BaFin stimmt der vorzeitigen
Rckzahlung zu.
(2) Recontribution Obligation: Any premature repayment
of the Cumulative Profit Participation Securities must
be repaid to the Bank irrespective of any agreement to
the contrary, unless (i) the capital has been replaced
by other own funds of at least equal quality or (ii) the
BaFin agrees to the premature repayment.
§ 12
Begebung weiteren Haftkapitals
§ 12
Issue of Additional Liable Capital
Die Bank behlt sich das Recht vor, Vertrge ber stille
Gesellschaften oder Vertrge ber Genussrechte oder
Genussscheine oder nachrangiges Haftkapital gemß
§ 10(5a) KWG abzuschließen. Ein Bezugsrecht der Genussscheininhaber auf derartige Instrumente besteht nicht.
The Bank reserves the right to conclude agreements on
silent partnerships or to conclude agreements on profit
participation rights in the form of Genussrechte or Genussscheine or subordinated capital in accordance with
§ 10(5a) KWG. Holders shall not have any subscription
rights to such instruments.
§ 13
Bekanntmachungen
§ 13
Notices
Bekanntmachungen der Bank, die die Kumulativen Genussscheine betreffen, erfolgen im Bundesanzeiger und in
je einem Pflichtblatt derjenigen deutschen Brse, an dem
die Kumulativen Genussscheine zum Brsenhandel zugelassen sind. Zur rechtlichen Wirksamkeit gengt die Verffentlichung im Bundesanzeiger.
All notices by the Bank concerning the Cumulative Profit
Participation Securities will be given by the Bank in the
Federal Gazette (Bundesanzeiger) and in at least one stock
exchange approved newspaper of such German exchange
on which the Cumulative Profit Participation Securities
may be admitted to trading from time to time. Publication
in the Federal Gazette shall suffice to give legal effect to
any notice.
§ 14
Schlussbestimmungen
§ 14
Final Clauses
(1) Anwendbares Recht: Form und Inhalt der Kumulativen
Genussscheine sowie die Rechte und Pflichten der
Genussscheininhaber und der Bank bestimmen sich
in jeder Hinsicht nach deutschem Recht und werden in
bereinstimmung damit ausgelegt.
(1) Governing Law: The form and content of the Cumulative Profit Participation Securities and the rights and
duties of the Holders and the Bank shall in all respects
be governed by, and construed in accordance with,
the laws of Germany.
(2) Gerichtsstand: Jegliche aus oder im Zusammenhang
mit den Kumulativen Genussscheinen entstehenden
Klagen oder Verfahren unterliegen der ausschließlichen Zustndigkeit des Landgerichts Dsseldorf,
soweit nicht zwingende gesetzliche Bestimmungen
etwas anderes bestimmen.
(2) Jurisdiction: The District Court in Dsseldorf shall
have exclusive jurisdiction for any action or other
legal proceedings arising out of or in connection with
the Cumulative Profit Participation Securities save as
required by mandatory provisions of law.
(3) Begebung weiterer Kumulativer Genussscheine: Die
Bank ist berechtigt, bis zum 31. Mrz 2006 (einschließlich) jederzeit und ohne Zustimmung der Genussscheininhaber weitere Wertpapiere mit gleicher Ausstattung (gegebenenfalls mit Ausnahme des Begebungstages, des Beginns der Verzinsung und/oder
des Ausgabepreises) in der Weise zu begeben, dass
sie mit den Kumulativen Genussscheinen eine einheitliche Serie von Wertpapieren bilden.
(3) Further Issues of Cumulative Profit Participation Securities: The Bank may, until (and including) 31 March
2006 and without the consent of Holders, issue further
securities having the same terms and conditions as
the Cumulative Profit Participation Securities in all respects (or in all respects except for the date of issuance, commencement of interest and/or price of
issue) so as to form a single series of securities with
the Cumulative Profit Participation Securities.
(4) Teilunwirksamkeit: Sollte eine der Bestimmungen dieser Genussscheinbedingungen ganz oder teilweise
unwirksam und undurchfhrbar sein oder werden, so
(4) Severability: Should any of the provisions of these
Terms and Conditions be or become invalid or unenforceable in whole or in part, the validity or the en-
56
bleibt die Wirksamkeit oder die Durchfhrbarkeit der
brigen Bestimmungen hiervon unberhrt. Anstelle
der unwirksamen Bestimmung soll, soweit rechtlich
mglich, eine dem Sinn und wirtschaftlichen Zweck
dieser Genussscheinbedingungen zum Zeitpunkt der
Begebung der Kumulativen Genussscheine entsprechende Regelung gelten. Unter Umstnden, unter
denen sich diese Genussscheinbedingungen als
unvollstndig erweisen, soll eine ergnzende Auslegung, die dem Sinn und Zweck dieser Genussscheinbedingungen entspricht, unter angemessener Bercksichtigung der berechtigten Interessen der beteiligten
Parteien erfolgen.
forceability of the remaining provisions shall not in
any way be affected or impaired thereby. In this case
the invalid provision shall be replaced by a provision
which is, to the extent legally possible, in accordance
with the meaning and the economic purposes of the
Terms and Conditions at the time of the issue of the
Cumulative Profit Participation Securities. In circumstances in which these Terms and Conditions prove to
be incomplete, a supplementary interpretation in accordance with the meaning and the purposes of these
Terms and Conditions under due considerations of the
legitimate interest of the parties involved shall be
applied.
(5) Bindende Fassung: Die deutsche Fassung dieser
Genussscheinbedingungen ist bindend.
(7) Binding Version: The German version of these Terms
and Conditions shall be the binding version.
57
TERMS AND CONDITIONS OF THE LOAN AGREEMENT
THE GERMAN TEXT OF THE LOAN AGREEMENT IS LEGALLY BINDING.
THE ENGLISH TRANSLATION IS FOR CONVENIENCE ONLY.
DIESER VERTRAG wird am 27. September 2005 abgeschlossen zwischen:
THIS AGREEMENT is made on 27 September 2005 between:
(1) PROPART FUNDING LIMITED PARTNERSHIP, einer
nach dem Recht Jerseys errichteten Kommanditgesellschaft (Limited Partnership) mit eingetragenem Sitz in
22 Grenville Street, St. Helier, Jersey JE4 8PX, Kanalinseln (die Darlehensnehmerin), handelnd durch ihre
Komplementrin (General Partner) ProPart Funding
2005-1 Limited; und
(1) PROPART FUNDING LIMITED PARTNERSHIP, a limited
partnership established under the laws of Jersey
whose registered office is at 22 Grenville Street,
St. Helier, Jersey JE4 8PX, Channel Islands (the Borrower) acting through its general partner ProPart
Funding 2005-1 Limited; and
(2) IKB DEUTSCHE INDUSTRIEBANK AG mit Sitz in Dsseldorf und Berlin, Deutschland (die Darlehensgeberin).
(2) IKB DEUTSCHE INDUSTRIEBANK AG with its registered office in Dsseldorf and Berlin, Germany (the
Lender).
PRAMBEL
WHEREAS
(A) Die Darlehensnehmerin wurde am 15. September
2005 als Kommanditgesellschaft (limited partnership)
nach dem Recht von Jersey errichtet. Die alleinigen
Gesellschafter der Darlehensnehmerin sind die Komplementrin und die Kommanditistin.
(A) The Borrower was established as a limited partnership
under Jersey law on 15 September 2005. The Borrower’s sole partners are the General Partner and the
Limited Partner.
(B) Die Darlehensgeberin ist mit der Komplementrin und
der Kommanditistin nicht verbunden.
(B) The Lender is unaffiliated with the General Partner and
the Limited Partner.
(C) Die Darlehensnehmerin beabsichtigt, am oder um den
29. September 2005 5 150.000.000 befristete Ergnzungskapital-Wertpapiere zu begeben (die Wertpapiere) und die Emissionserlse ausschließlich zu dem
Zweck zu verwenden, von der IKB Deutsche Industriebank AG (in dieser Funktion nachfolgend Bank) ausgegebene Genussscheine im Gesamtnennbetrag von
5 150.000.000 (in Worten: Euro einhundertfnfzig Millionen) (die Kumulativen Genussscheine) zu erwerben. Eine Abschrift der Genussscheinbedingungen ist
diesem Vertrag als Anhang I beigefgt.
(C) The Borrower proposes to issue on or about 29 September 2005 5 150,000,000 Dated Upper Tier 2 Securities (the Securities), the proceeds of which it will use
exclusively for the purpose of acquiring profit participation securities issued by IKB Deutsche Industriebank AG (in this capacity hereinafter referred to as the
Bank) in the aggregate nominal amount of
5 150,000,000 (in words: euro one hundred fifty million) (the Cumulative Profit Participation Securities).
A copy of the terms and conditions of the Cumulative
Profit Participation Securities is attached to this Agreement as Annex I.
(D) Als Gegenleistung fr die Bereitstellung des Genussrechtskapitals stehen der Emittentin als Genussscheininhaberin nach Maßgabe der Genussscheinbedingungen Gewinnausschttungen zu, die jhrlich nachtrglich ausgeschttet werden (Gewinnausschttungszahlungen).
(D) In consideration for the provision of the profit participating capital, the Issuer, as holder of the Cumulative
Profit Participation Securities will be entitled, subject
to the terms and conditions of the Cumulative Profit
Participation Securities, to profit distributions payable
annually in arrear (Profit Distribution Payments).
Im Fall eines Bilanzverlustes wird der Buchwert der
Kumulativen Genussscheine gemß § 6 der Genussscheinbedingungen um den Betrag herabgesetzt, der
der Verlustbeteiligung Genussscheininhaber entspricht, die sich aus dem Verhltnis des Buchwerts der
Kumulativen Genussscheine zu dem Gesamtbuchwert
aller am Bilanzverlust teilnehmenden Haftkapitalanteile der Bank ergibt. Nach einer solchen Herabsetzung werden knftige Jahresberschsse fr eine Gutschrift des Buchwerts der Kumulativen Genussscheine
bis zu einem Gesamtbetrag von 5 150.000.000 (die
Wiedergutschrift) verwendet.
In addition, in the event of a Balance Sheet Deficit, the
book value of the Cumulative Profit Participation Securities will be reduced in accordance with § 6 of the
terms and conditions of the Cumulative Profit Participation Securities by the amount of its pro rata share
in the relevant Balance Sheet Deficit in the same proportion which the book value of the Cumulative Profit
Participation Securities bears to the aggregate book
value of all components of the Bank’s liable capital
(Haftkapitalanteile) which share in the Balance Sheet
Deficit. After such reduction, future net profits will be
used to write up the book value of the Cumulative
Profit Participation Securities to the total amount of
5 150,000,000 (the Replenishment).
(E) Nach Maßgabe der Emissionsbedingungen der Wertpapiere sind die Inhaber der Wertpapiere (Emissionsglubiger) berechtigt, jhrlich von den Gewinnausschttungszahlungen abhngende Zinszahlungen auf
die Wertpapiere (Zinszahlungen) zu erhalten. Eine
Abschrift der Emissionsbedingungen der Wertpapiere
ist diesem Vertrag als Anhang II beigefgt.
(E) Pursuant and subject to the terms and conditions of
the Securities, the holders of the Securities (Securityholders) are entitled to receive annual interest payments on the Securities (Coupon Payments) which are
linked to the Profit Distribution Payments. A copy of
the terms and conditions of the Securities is attached
to this Agreement as Annex II.
58
(F) Wenn Gewinnausschttungszahlungen (einschließlich
der Zahlung von Ausgefallenen Gewinnausschttungen) an die Darlehensnehmerin ausgeschttet werden
oder die Kumulativen Genussscheine nach einer
Herabsetzung ihres Buchwerts gemß § 6 der Genussscheinbedingungen wieder gutgeschrieben wird, ist
die Bank verpflichtet, von den ausgeschtteten Betrgen oder dem Betrag der Wiedergutschrift Kapitalertragsteuer zuzglich Solidarittszuschlag einzubehalten (jeweils ein Einbehalt), sofern nicht die Finanzbehrden Zahlungen an die Darlehensnehmerin
befreit haben. Soweit die Einbehalte nach deutschem
Steuerrecht der Darlehensnehmerin zuzurechnen sind,
gelten sie als Vorauszahlung auf die von der Darlehensnehmerin geschuldete Krperschaftsteuer in
Deutschland.
(F) When Profit Distribution Payments (including payments of Arrears of Profit Distributions) are distributed
to the Borrower or upon a replenishment of the Cumulative Profit Participation Securities after a reduction of
its book value in accordance with § 6 of the terms and
conditions of the Cumulative Profit Participation Securities, the Bank must withhold German Withholding
Tax plus the “solidarity surcharge” (each a Withholding) on the distributed amounts or on the amount of
the Replenishment, unless the tax authorities have
granted an exemption for payments to the Borrower.
The Withholdings, to the extent attributable to the
Borrower under German tax laws, will be counted as a
prepayment towards the German corporate income
tax owed by the Borrower.
(G) Die ProPart Funding 2005-1 GmbH, eine nach deutschem Recht errichtete Gesellschaft mit beschrnkter
Haftung mit Sitz in Frankfurt am Main, Deutschland,
die der limited partner (wie in dem Limited Partnerships (Jersey) Law 1994 in der jeweils gltigen Fassung definiert) der Darlehensnehmerin ist, (Kommanditistin) in ihrer Eigenschaft als limited partner der
Darlehensnehmerin rechnet in jedem Jahr mit Steuererstattungsansprchen gegenber den deutschen
Finanzbehrden (jeweils ein Steuererstattungsanspruch) in Hhe der Betrge, um die die Vorauszahlungen in Form der Einbehalte ihre jeweilige tatschliche
Krperschaftsteuerschuld in Deutschland berschreiten.
(G) ProPart Funding 2005-1 GmbH, a limited liability company incorporated under the laws of Germany whose
corporate seat is in Frankfurt am Main, Germany, and
who is the limited partner (as defined in the Limited
Partnerships (Jersey) Law 1994, as amended) of the
Borrower (Limited Partner) in its capacity as the limited partner of the Borrower expects to be entitled for
each tax year to refund claims against the German tax
authorities (each a Tax Refund Claim) in the amount by
which the prepayments in the form of the Withholdings exceed its actual German corporate income tax
liability.
(H) In einem Vertrag zwischen der ProPart Funding 2005-1
Limited, einer nach dem Recht von Jersey errichteten
Gesellschaft mit beschrnkter Haftung mit Sitz in
22 Grenville Street, St. Helier, Jersey JE4 8PX, Kanalinseln, die der General Partner (wie im Limited Partnerships (Jersey) Law 1994 in der jeweils gltigen Fassung definiert) der Darlehensnehmerin ist (Komplementrin) und der Kommanditistin, der das gleiche
Datum wie dieser Vertrag trgt (Einzahlungsvertrag),
verpflichtet sich die Kommanditistin zugunsten der
Darlehensnehmerin, smtliche Betrge, die sie von
den deutschen Finanzbehrden in Bezug auf die
Steuererstattungsansprche
der
Kommanditistin
erhlt, an die Darlehensnehmerin zu zahlen (jeweils
eine Kapitaleinzahlung).
(H) In an agreement between ProPart Funding 2005-1 Limited, a limited liability company incorporated under
the laws of Jersey whose registered office is at
22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
Islands and who is the general partner (as defined in
the Limited Partnerships (Jersey) Law 1994, as
amended) of the Borrower (General Partner) and the
Limited Partner dated the date hereof (Contribution
Agreement), the Limited Partner undertakes, for the
benefit of the Borrower, to contribute to the Borrower
amounts that it receives from the German tax authorities on account of the Limited Partner’s Tax Refund
Claims (each such contribution a Contribution Payment).
(I) Die Darlehensnehmerin hat die Darlehensgeberin
gebeten, ihr ein Darlehen einzurumen, um damit ihre
Verpflichtungen zu Zinszahlungen auf die Wertpapiere
und zur vollstndigen Wiedergutschrift der Kumulativen Genussscheine nach einer Herabsetzung ihres
Buchwertes gemß den Genussscheinbedingungen,
jeweils in dem Umfang, in dem ein Einbehalt gemacht
werden muss, zu finanzieren.
(I) The Borrower has requested that the Lender make
available to it a loan facility in order to fund the Borrower’s obligations to pay Coupon Payments under
the Securities and to fully replenish the Cumulative
Profit Participation Securities after the reduction of
their book value in accordance with the terms and
conditions of the Cumulative Profit Participation Securities, in each case to the extent that a Withholding is
required to be made.
AUF DIESER GRUNDLAGE WIRD FOLGENDES VEREINBART:
NOW THEREFORE, IT IS AGREED AS FOLLOWS:
§1
Definitionen
§1
Definitions
In diesem Vertrag haben die nachfolgenden Begriffe die in
der jeweils genannten Bestimmung festgelegte Bedeutung.
In this Agreement, the following terms have the meaning
ascribed to them in the provision of this Agreement at the
place set out below:
Auszahlungszahltag
Bank
Darlehen
Darlehensauszahlung
Darlehensgeberin
Darlehensnehmerin
Einbehalt
Advance Payment Date
Bank.
Loan
Advance
Lender
Borrower
Withholding
§ 2(2)
Prambel (C)
§ 2(1)
§ 2(1)
Parteien
Parteien
Prambel (F)
§ 2(2)
Preamble (C)
§ 2(1)
§ 2(1)
Parties
Parties
Preamble (F)
59
Einzahlungsvertrag
Emissionsglubiger
Kumulative Genussscheine
Geschftstag
Gewinnausschttungszahlung
Kapitaleinzahlung
Kommanditistin
Komplementrin
Kndigungsgrund
Rckzahlung
Rckzahlungstag
Steuererstattungsanspruch
Wertpapiere
Wiedergutschrift
Zinszahlungen
Prambel (H)
Prambel (E)
Prambel (C)
§ 3(2)
Prambel (D)
Prambel (H)
Prambel (G)
Prambel (H)
§ 6(1)
§ 3(1)
§ 3(1)
Prambel (G)
Prambel (C)
Prambel (D)
Prambel (E)
Contribution Agreement
Securityholders
Cumulative Profit Participation Securities
Business Day
Profit Distribution Payments
Contribution Payment
Limited Partner
General Partner
Event of Default
Repayment
Repayment Date
Tax Refund Claim
Securities
Replenishment
Coupon Payments
Preamble (H)
Preamble (E)
Preamble (C)
§ 3(2)
Preamble (D)
Preamble (H)
Preamble (G)
Preamble (H)
§ 6(1)
§ 3(1)
§ 3(1)
Preamble (G)
Preamble (C)
Preamble (D)
Preamble (E)
§2
Vertragsgegenstand
§2
Loan Facility
(1) Die Darlehensgeberin verpflichtet sich nach Maßgabe
der Bestimmungen dieses Vertrages, an den in § 2(2)
genannten Tagen Darlehensauszahlungen an die Darlehensnehmerin oder eine von der Darlehensnehmerin bestimmte dritte Person in der in § 2(3) genannten
Hhe vorzunehmen. Jede tatschlich erfolgte Auszahlung wird in diesem Vertrag als Darlehensauszahlung
und alle zu einem bestimmten Zeitpunkt ausstehenden Darlehensauszahlungen werden zusammen als
das Darlehen bezeichnet.
(1) Subject to, and upon the terms and conditions contained herein, the Lender agrees to make advances to
the Borrower or a third person specified by the Borrower in the amounts specified in § 2(3) on the dates
specified in § 2(2). Each actual advance made is hereinafter referred to as an Advance and the sum of all
Advances outstanding at any given time is referred to
as the Loan.
(2) Auszahlungszahltage sind
(2) Advance Payment Dates shall be:
(a) jeder Tag, an dem eine Gewinnausschttungszahlung und/oder eine Nachzahlung Ausgefallener
Gewinnausschttungen nach Maßgabe der Genussscheinbedingungen fllig wird; und
(a) any day on which a Profit Distribution Payment
and/or a payment of Arrears of Profit Distributions
becomes due under the terms and conditions of
the Cumulative Profit Participation Securities; and
(b) jeder Tag, an dem eine Wiedergutschrift auf den
Buchwert der Kumulativen Genussscheine gemß
den Bestimmungen der Genussscheinbedingungen tatschlich erfolgt.
(b) any day on which a Replenishment of the book
value of the Cumulative Profit Participation Securities is actually made pursuant to their terms and
conditions.
(3) Darlehensauszahlungen sind in Euro in der in diesem
§ 2(3) festgesetzten Hhe vorzunehmen.
(3) Advances shall be payable in Euro in the amounts stipulated in this § 2(3).
(a) Falls Darlehensauszahlungen gemß § 2(2)(a)
geleistet werden, sind diese in Hhe des Betrages
zu zahlen, der dem Einbehalt von der Gewinnausschttungszahlung bzw. Zahlung der Ausgefallenen Gewinnausschttung entspricht, die an dem
betreffenden Auszahlungszahltag fllig wird.
(a) In the case of Advances falling due under § 2(2)(a),
an Advance shall be payable in an amount corresponding to the Withholding on the Profit Distribution Payment and/or payment of Arrears of
Profit Distribution falling due on the relevant Advance Payment Date.
(b) Falls Darlehensauszahlungen gemß § 2(2)(b)
geleistet werden, sind diese in Hhe des Betrages
zu zahlen, der dem Einbehalt von der Wiedergutschrift entspricht, die an dem betreffenden Auszahlungszahltag tatschlich erfolgt.
(b) In the case of Advances paid under § 2(2)(b), an
Advance shall be payable in an amount corresponding to the Withholding on the Replenishment actually made on the relevant Advance Payment Date.
(4) Die Darlehensnehmerin wird die Erlse aus jeder
gemß diesem Vertrag erhaltenen Darlehensauszahlung ausschließlich wie folgt verwenden:
(4) The Borrower shall make use of the proceeds of each
Advance obtained hereunder solely:
(a) im Fall von Darlehensauszahlungen, die gemß
§ 2(2)(a) fllig sind, zur Finanzierung ihrer Verpflichtungen, an den jeweiligen Flligkeitstagen
Zinszahlungen an die Emissionsglubiger nach
Maßgabe der Emissionsbedingungen der Wertpapiere zu leisten; und
(a) in the case of Advances falling due under § 2(2)(a),
to fund its obligations to make Coupon Payments
to the Securityholders on each due date pursuant
to the terms and conditions of the Securities; and
(b) im Fall von gemß § 2(2)(b) geleisteten Darlehensauszahlungen zur Auffllung des Genussrechtskapitals.
(b) in the case of Advances paid under § 2(2)(b), to
replenish the profit participating capital.
§3
Rckzahlung
§3
Repayment
(1) Die Darlehensnehmerin ist verpflichtet, unverzglich
nach Erhalt von Zahlungen aufgrund von Steuererstat-
(1) Promptly after receipt of Contribution Payments, the
Borrower shall be required to repay the Loan in the
60
tungsansprchen das Darlehen an die Darlehensgeberin in Hhe des Betrages aller solchermaßen von ihr
erhaltenen Zahlungen der betreffenden Finanzbehrden zurckzuzahlen (jede solche Zahlung eine Rckzahlung und jeder Flligkeitstag einer solchen Zahlung ein Rckzahlungstag).
amount of such Contribution Payments (each such
payment a Repayment and each due date for such prepayment a Repayment Date).
(2) Die Darlehensnehmerin ist zur vorzeitigen Rckzahlung des Darlehens ausschließlich dann berechtigt,
wenn es fr die Darlehensgeberin in Deutschland
ungesetzlich wird, irgendeine ihrer in diesem Vertrag
vorgesehenen Verpflichtungen zu erfllen oder den
Fortbestand des Darlehens zu ermglichen. Die Kndigungsfrist betrgt in diesem Fall fnf Geschftstage.
Geschftstag bezeichnet jeden Tag an dem TARGET
(das Trans-European Automated Real-time Gross Settlement Express Transfer System) Buchungen oder
Zahlungsanweisungen im Hinblick auf Zahlungen in
Euro abwickelt.
(2) The Borrower may prepay the Loan only if it becomes
illegal in Germany for the Lender to perform any of its
obligations as contemplated by this Agreement or to
allow the Loan to remain outstanding. The notice period in this case is five Business Days. Business Day
shall mean a day on which TARGET (the Trans-European Automated Real-time Gross Settlement Express
Transfer system) is operating credit or transfer instructions in respect of payments in Euro.
(3) Nach vollstndiger Rckzahlung der Wertpapiere und
Rckfhrung des Darlehens aus allen verfgbaren
Steuererstattungsansprchen ist die Darlehensnehmerin verpflichtet, etwa verbleibende Darlehenssalden aus sonstigen ihr tatschlich zur Verfgung stehenden Barmitteln zurckzufhren, soweit diese nicht
zur Aufrechterhaltung ihrer Existenz erforderlich sind.
(3) Following the full and final repayment of the Securities and the repayment of the Loan using all available
Contribution Payments, the Borrower shall be obliged
to repay any remaining loan balance using any other
cash funds available to it to the extent such funds are
not absolutely required to keep the Borrower in operation.
(4) Vorbehaltlich § 3(3) sind die Ansprche der Darlehensgeberin gegen die Darlehensnehmerin auf Rckzahlung von Darlehensauszahlungen gemß diesem
§ 3(4) sowie alle anderen Zahlungsverpflichtungen
der Darlehensnehmerin hierunter mit Ausnahme der
Verpflichtung zur Zahlung von aufgelaufenen Zinsen
durch die Barmittel begrenzt, welche die Darlehensnehmerin tatschlich in Anbetracht von Steuererstattungsansprchen erhlt. Die Ansprche der Darlehensgeberin auf Zahlung von Zinsen sind durch die
verbleibenden und der Darlehensnehmerin tatschlich
zur Verfgung stehenden Barmittel begrenzt. Sie sind
gegenber fllig gewordenen Verbindlichkeiten aus
den Wertpapieren nachrangig und erst nach deren
vollstndiger Befriedigung zahlbar. Die Darlehensnehmerin verfgt ber keine anderen Mittel zur Erfllung
ihrer Verbindlichkeiten und dieser Vertrag begrndet
demgemß keinerlei Zahlungsverbindlichkeiten der
Darlehensnehmerin ber diese Betrge hinaus.
(4) Subject to § 3(3), the Lender’s claims against the Borrower for repayment of outstanding Advances pursuant to this § 3(4) and any other payment obligations
of the Borrower hereunder save for the payment of interest are limited to the payments actually received by
the Borrower on account of Contribution Payments.
The Lender’s claims against the Borrower for payment
of accrued and unpaid interest are limited to the
remaining cash actually available to the Borrower.
They shall rank behind, and be paid only after full
satisfaction of, any matured payment obligation
under the Securities has been satisfied in full. Other
than the foregoing, the Borrower will have no funds
available to meet its payment obligations under this
Agreement and this Agreement will not give rise to
any payment obligation in excess of the foregoing.
§4
Zinsen
§4
Interest
(1) Zinsen sind von der Darlehensnehmerin an jedem
Rckzahlungstag in der gemß diesem § 4 bestimmten Hhe an die Darlehensgeberin zu zahlen.
(1) The Borrower shall make interest payments to the
Lender on each Repayment Date in an amount to be
calculated in accordance with this § 4.
(2) Die Darlehensauszahlungen, die an einem Rckzahlungstag ausstehend sind, werden wie folgt verzinst:
(2) Interest shall accrue on the amount of the Advances
outstanding at the relevant Repayment Date as follows:
Fr den Zeitraum vom jeweiligen Auszahlungszahltag
(einschließlich) bis zum jeweiligen Rckzahlungstag
(ausschließlich) entspricht der anwendbare Zinssatz
4 % p. a. Darber hinaus fllt eine Bereitstellungsgebhr in Hhe von 25 Basispunkten auf nicht gezogene
Darlehensauszahlungen an, wobei ausschließlich fr
die Berechnung dieser Bereitstellungsgebhr der
Maximalbetrag der nicht gezogenen Darlehensauszahlungen 5 1.540.000 nicht bersteigt.
For the period from and including the relevant Advance Payment Date to but excluding the relevant
Repayment Date interest accrues at a rate of 4 per
cent. per annum. In addition, a commitment fee will
be payable at a rate of 25 basis points on any undrawn
advances, provided that exclusively for the calculation
of such commitment fee the maximum amount of
undrawn advances shall not exceed 5 1,540,000.
(3) Die Zinsen werden berechnet, indem der anwendbare
Zinssatz mit der tatschlichen Anzahl von Tagen, die in
diesem Zeitraum verstrichen sind (wobei jeweils der
Auszahlungszahltag einbezogen und der Ordentliche
Rckzahlungstag nicht einbezogen wird) multipliziert,
das Ergebnis durch die tatschliche Anzahl der Tage
(3) Interest will be calculated by multiplying the applicable rate of interest by the actual number of days
elapsed during such period (provided that the Advance Payment Date shall be inclusive and the Repayment Date shall be exclusive) divided by the actual
number of days (365 or 366) in the respective interest
61
(365 oder 366) im jeweiligen Zinsjahr dividiert und der
so ermittelte Zinssatz auf das Darlehen angewendet
wird.
year and applying such interest rate to the Loan balance.
§5
Allgemeine Verpflichtungen
§5
General Undertakings
Die Verpflichtungen in diesem § 5 bleiben vom Datum
dieses Vertrages an solange in Kraft, wie Darlehensauszahlungen gemß diesem Vertrag ausstehen.
The undertakings in this § 5 shall remain in force from the
date of this Agreement for so long as any Advance is outstanding under this Agreement.
(1) Die Darlehensnehmerin wird smtliche Genehmigungen, Zustimmungen, Billigungen, Beschlsse, Zulassungen, Befreiungen, Einreichungen oder Registrierungen, die gemß irgendeinem Gesetz oder einer
Vorschrift erforderlich sind, um sie in die Lage zu versetzen, ihre Verpflichtungen aufgrund dieses Vertrages
zu erfllen und die Rechtmßigkeit, Wirksamkeit,
Durchsetzbarkeit und Zulssigkeit dieses Vertrages als
Beweismittel in Deutschland sicherzustellen, unverzglich einholen, einhalten und alles Erforderliche
unternehmen, damit diese uneingeschrnkt wirksam
bleiben.
(1) The Borrower shall promptly obtain, comply with and
do all that is necessary to maintain in full force and
effect any authorisation, consent, approval, resolution, licence, exemption, filing or registration required
under any law or regulation to enable it to perform its
obligations under this Agreement and to ensure the
legality, validity, enforceability or admissibility in evidence in Germany of this Agreement.
(2) Die Darlehensnehmerin wird smtliche Gesetze,
denen sie gegebenenfalls unterliegt, in jeder Hinsicht
einhalten soweit die Nichteinhaltung solcher Gesetze
ihre Fhigkeit zur Erfllung ihrer Verpflichtungen aufgrund dieses Vertrages erheblich beeintrchtigen
wrde.
(2) The Borrower shall comply in all respects with all laws
to which it may be subject, if failure so to comply
would materially impair its ability to perform its obligations under this Agreement.
§6
Kndigungsgrnde und vorzeitige Flligstellung
§6
Events of Default and Acceleration
(1) Jedes der in diesem § 6(1) genannten Ereignisse oder
Umstnde ist ein Kndigungsgrund.
(1) Each of the events or circumstances set out in this
§ 6(1) is an Event of Default.
(a) Die Darlehensnehmerin zahlt einen gemß diesem
Vertrag flligen Betrag nicht am Flligkeitstag an
dem Ort und in der Whrung, die fr die Zahlung
vorgesehen sind, es sei denn, dass:
(a) The Borrower does not pay on the due date any
amount payable pursuant to this Agreement at the
place and in the currency in which it is expressed
to be payable, unless:
(i) ihre Nichtzahlung auf einem administrativen
oder technischen Fehler beruht; und
(i) its failure to pay is caused by administrative or
technical error; and
(ii) die Zahlung innerhalb von fnf Geschftstagen nach dem Flligkeitstag erfolgt.
(ii) payment is made within five Business Days of
its due date.
(b) Die Darlehensnehmerin erfllt irgendeine Bestimmung dieses Vertrages nicht (mit Ausnahme der
in § 6(1)(a) genannten), es sei denn, dass:
(b) The Borrower does not comply with any provision
of this Agreement (other than those referred to in
§ 6(1)(a)), unless:
(i) die Nichterfllung geheilt werden kann und
innerhalb von fnf Geschftstagen geheilt
wird, nachdem die Darlehensgeberin die Darlehensnehmerin benachrichtigt hat oder die
Darlehensnehmerin von ihrer Nichterfllung
Kenntnis erlangt; oder
(i) the failure to comply is capable of remedy and
is remedied within five Business Days of the
Lender giving notice to the Borrower or the
Borrower becoming aware of its failure to
comply; or
(ii) dieses Ereignis keine erheblichen Auswirkungen auf die Fhigkeit der Darlehensnehmerin
zur Leistung von Zinszahlungen und Tilgungszahlungen gemß diesem Vertrag hat.
(ii) such event will not materially affect the Borrower’s ability to make interest payments and
principal repayments under this Agreement.
(c) Eine Zusicherung oder Erklrung, die von der Darlehensnehmerin in diesem Vertrag abgegeben
wurde bzw. als abgegeben gilt, ist oder erweist
sich in irgendeiner wesentlichen Hinsicht als zum
Zeitpunkt der Abgabe oder angenommenen
Abgabe unrichtig oder irrefhrend, es sei denn,
dass die Tatsachen und Umstnde, die die falsche
Darstellung verursacht haben, keine erheblichen
Auswirkungen auf die Fhigkeit der Darlehensnehmerin zur Leistung von Zinszahlungen und Tilgungszahlungen gemß diesem Vertrag haben.
(c) Any representation or statement made or deemed
to be made by the Borrower in this Agreement is
or proves to have been incorrect or misleading in
any material respect when made or deemed to be
made, unless the facts and circumstances giving
rise to the misrepresentation materially affect the
Borrower’s ability to make interest payments and
principal repayments under this Agreement.
62
(2) Bei und jederzeit nach Eintritt eines Kndigungsgrundes, der fortbesteht, kann die Darlehensgeberin durch
Mitteilung an die Darlehensnehmerin:
(2) On and at any time after the occurrence of an Event of
Default which is continuing, the Lender may by notice
to the Borrower:
(a) das Darlehen und alle unter diesem Vertrag angefallenen Betrge unverzglich ganz oder teilweise
fllig stellen, woraufhin diese unverzglich fllig
werden; und/oder
(a) declare that all or part of the Loan and all other
amounts accrued under this Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or
(b) das Darlehen ganz oder teilweise fr auf Verlangen
zahlbar erklren, woraufhin es auf Verlangen der
Darlehensgeberin unverzglich fllig wird.
(b) declare that all or part of the Loan be payable on
demand, whereupon the same shall immediately
become payable on demand by the Lender.
§7
Wechsel der Parteien
§7
Changes to the Parties
Weder die Darlehensgeberin noch die Darlehensnehmerin
sind berechtigt, irgendwelche ihrer jeweiligen Rechte aus
diesem Vertrag abzutreten oder zu bertragen oder
irgendwelche ihrer jeweiligen Verpflichtungen aufgrund
dieses Vertrages ohne die vorherige Zustimmung der
jeweils anderen Partei zu bertragen.
Neither the Lender nor the Borrower may assign or transfer, as applicable, any of its rights or transfer any of its
obligations under this Agreement without the prior consent of the other party.
§8
Zahlungen
§8
Payments
(1) Aufrechnungsverbot: Die Darlehensgeberin und die
Darlehensnehmerin sind nicht berechtigt, eine fllige
Verpflichtung, die eine von ihnen schuldet, gegen eine
fllige Verpflichtung aufzurechnen, die die andere von
ihnen schuldet, unabhngig vom Zahlungsort oder
der Whrung jeder Verpflichtung oder ob diese sich
auf diesen Vertrag bezieht oder nicht.
(1) No right of set off: The Lender and the Borrower shall
not set off any matured obligation due from the other
party against any matured obligation owed by it to the
other party, regardless of the place of payment or currency of either obligation or whether the obligations
relate to this Agreement or not.
(2) Geschftstagskonvention: Jede Zahlung, die an einem
Tag fllig ist, der kein Geschftstag ist, hat am darauf
folgenden Geschftstag zu erfolgen.
(2) Business Day Convention: Any payment which is due
to be made on a day that is not a Business Day shall
be made on the next following Business Day.
§9
Kommunikation
§9
Notices
Jede Mitteilung gemß diesem Vertrag muss schriftlich
erfolgen und per Einschreiben, Kurier, besttigter Sendung oder Fax zu Hnden der nachstehend genannten
Personen an die jeweiligen Anschriften der Parteien oder
die in diesem Vertrag genannten eingetragenen Sitze
oder, bei Sendung per Fax, an die jeweils nachstehend
genannten Nummern gesendet bzw. bermittelt werden:
Any notice to be given under this Agreement shall be in
writing and shall be delivered to or sent by registered,
special delivery or recorded post or by facsimile transmission for the attention of the persons set out below to the
parties’ respective addresses or registered offices as set
out in this Agreement or, in the case of facsimile transmission, to the respective numbers set out below:
[intentionally omitted]
[intentionally omitted]
§ 10
Teilunwirksamkeit
§ 10
Severability
Sollte irgendeine Bestimmung dieses Vertrages aus
irgendeinem Grund unwirksam, ungesetzlich oder
undurchsetzbar sein, gilt sie als durch diejenige wirksame,
gesetzliche und durchsetzbare Bestimmung ersetzt, die
der in der betreffenden Bestimmung niedergelegten
Absicht der Parteien soweit wie mglich nahe kommt,
und die Wirksamkeit, Gesetzlichkeit und Durchsetzbarkeit
der brigen Bestimmungen dieses Vertrages wird hierdurch in keiner Weise berhrt oder beeintrchtigt.
Should any provision of this Agreement be found invalid,
illegal or unenforceable for any reason, it is to be deemed
replaced by the valid, legal and enforceable provision
most closely approximating the intent of the parties, as
expressed in such provision, and the validity, legality and
enforceability of the remainder of this Agreement shall in
no way be affected or impaired thereby.
§ 11
nderungen und Verzichtserklrungen
§ 11
Amendments and Waivers
Eine nderung oder Verzichtserklrung in Bezug auf
irgendeine Bestimmung dieses Vertrages ist nur mit
schriftlicher Zustimmung der Darlehensgeberin und der
Darlehensnehmerin mglich. Dies gilt auch fr eine nderung oder Verzichtserklrung in Bezug auf diesen § 11.
Any term of this Agreement may be amended or waived
only with the written consent of the Lender and the Borrower. This shall also apply to an amendment or waiver of
this § 11.
63
§ 12
Schlussbestimmungen
§ 12
Final Clauses
(1) Dieser Vertrag unterliegt dem Recht der Bundesrepublik Deutschland und die Parteien unterwerfen sich
unwiderruflich dem Landgericht Dsseldorf als nichtausschließlichem Gerichtsstand.
(1) This Agreement shall be governed by, and construed
in accordance with, the laws of the Federal Republic of
Germany and the parties irrevocably submit to the
non-exclusive jurisdiction of the district court (Landgericht) Dsseldorf.
(2) Dieser Vertrag kann in mehreren Ausfertigungen und
durch die Parteien in getrennten Ausfertigungen
unterzeichnet und bergeben werden, von denen jede
ein Original darstellt, jedoch alle zusammen ein und
dasselbe Instrument bilden.
(2) This Agreement may be executed and delivered in any
number of counterparts and by the parties on separate
counterparts, each of which is an original, but all of
which taken together constitute one and the same
instrument.
(3) Die deutsche Fassung dieses Vertrages ist bindend.
(3) The German version of this Agreement shall be the
binding version.
Anhang I – Genussscheinbedingungen
Annex I – Terms and Conditions of the Cumulative Profit
Participation Securities
Anhang II – Emissionsbedingungen der Wertpapiere
Annex II – Terms and Conditions of the Securities
64
DESCRIPTION OF THE CONTRIBUTION AGREEMENT
Upon distribution of Profit Distribution Payments to the Issuer or the replenishment of the book value
of the Cumulative Profit Participation Securities following a Reduction, IKB must withhold amounts
on account of German Withholding Tax plus solidarity surcharge (Solidarittszuschlag) payable on
the distributed amounts and/or on the amount of the replenishment pursuant to § 43 (1) No. 3 German Income Tax Act (EStG), unless the tax authorities have granted a tax exemption for such payments.
The withholding of such amounts is treated as a prepayment of the corporate income tax liability of
that part of the Issuer’s profits that is attributable to the Issuer Limited Partner under German tax law.
To the extent that any such prepayment exceeds the actual amount of corporate income tax payable
by the Issuer Limited Partner, the Issuer Limited Partner will have a Tax Refund Claim against the German tax authorities.
On 27 September 2005, the Issuer General Partner and the Issuer Limited Partner entered into the
Contribution Agreement according to which the Issuer Limited Partner is obliged to contribute to the
Issuer all payments that it receives from the German tax authorities on account of its Tax Refund
Claims. Under the Contribution Agreement, the Issuer must use the monies received as Contribution
Payments to make repayments under the Loan Agreement.
The Contribution Agreement is governed by, and construed in accordance with, German law.
65
DESCRIPTION OF THE FIDUCIARY ASSIGNMENT AGREEMENT
On 27 September 2005, IKB, the Lender, the Issuer, the Issuer General Partner, the Issuer Limited Partner, BNP Paribas Trust Corporation UK Limited, acting as security trustee for the benefit of Securityholders have entered into the Fiduciary Assignment Agreement.
Under the Fiduciary Assignment Agreement, the Issuer has transferred the global certificate representing the Cumulative Profit Participation Securities to the Security Trustee and has assigned to the
Security Trustee all its (present and future, conditional and unconditional) payment claims against
the Lender under the Loan Agreement and against IKB under the Indemnity Agreement. The payment
claims assigned under the Fiduciary Assignment Agreement are the Assigned Claims. The Fiduciary
Assignment Agreement provides that any existing payment claims under the Loan Agreement and
the Indemnity Agreement shall pass to the Security Trustee immediately and that any and all future
payment claims under the Loan Agreement and the Indemnity Agreement shall pass to the Security
Trustee as they arise.
The purpose of the security transfer of the Cumulative Profit Participation Securities and the assignment of the payment claims under the Fiduciary Assignment Agreement is to create collateral for the
benefit of Securityholders in order to secure the Securityholders’ claims for Coupon Payments and
capital repayments under the Securities.
Under the Fiduciary Assignment Agreement, the Security Trustee holds the Cumulative Profit Participation Securities and the Assigned Claims in trust for the benefit of the Securityholders to secure
payments to be made to the Securityholders under the Securities. The Security Trustee may not dispose of the Cumulative Profit Participation Securities and the Assigned Claims (i) without the prior
written consent of the holders of 100 per cent. of the Securities or (ii) through transactions which are
adverse to the interests of the holders of the Securities.
In case the payments due on the Cumulative Profit Participation Securities or in respect of the
Assigned Claims are not made as and when due, the Security Trustee is obliged immediately to
assert any such claims against the relevant debtor.
The Fiduciary Assignment Agreement further provides that the Issuer may not dispose of the
Assigned Claims and that the Issuer Limited Partner may not dispose of its Tax Refund Claims. In
particular, the Issuer and the Issuer Limited Partner are prohibited from encumbering the Assigned
Claims and the Tax Refund Claims, respectively, with any third party rights or taking any action that
might adversely affect or jeopardise the Assigned Claims and the Tax Refund Claims, respectively.
Pursuant to the Fiduciary Assignment Agreement, the Security Trustee may retire at any time. However, such retirement will not take effect until (i) the appointment of a new security trustee, (ii) the
transfer of the global security representing the Cumulative Profit Participation Securities and all
Assigned Claims to such new security trustee and (iii) the accession to the Fiduciary Assignment
Agreement by such new security trustee. The new security trustee will be appointed by the Issuer
with the prior consent of IKB. It shall be a bank having its corporate seat, and licensed to conduct
banking business, in either Germany or the United Kingdom or a fully owned direct or indirect subsidiary of such bank.
The Fiduciary Assignment Agreement is governed by, and construed in accordance with, German
law.
66
GENERAL INFORMATION ON THE ISSUER
Incorporation, Domicile and Duration
The Issuer was established under the name ProPart Funding Limited Partnership on 15 September
2005 and registered under the Limited Partnerships (Jersey) Law 1994, as amended, on 16 September
2005. It is registered with the Jersey Registrar of Limited Partnerships under the no. LP675. The Issuer
was established for an unlimited duration and is not a legal entity separate from its partners and has
no operating history.
Contributed Capital
The partnership capital of the Issuer amounts to 5 1,000 (one thousand Euros).
Partners
The Issuer General Partner is ProPart Funding 2005-1 Limited, a limited liability company incorporated under Jersey law whose sole beneficial shareholder will be, upon consummation of the offering described herein, Mourant & Co. Trustees Limited as trustee for the ProPart Funding 2005-1 Charitable Trust, an independent charitable trust domiciled in Jersey. The Issuer Limited Partner is ProPart
Funding 2005-1 GmbH, a limited liability company incorporated under German law and domiciled in
Frankfurt am Main, Germany. The sole beneficial shareholder of the Issuer Limited Partner is Mourant
& Co. Trustees Limited as trustee for the ProPart Funding 2005-1 GmbH Charitable Trust, an independent charitable trust domiciled in Jersey.
Principal Activities
The business purpose of the Issuer is, pursuant to a limited partnership agreement entered into by
the Issuer General Partner and the Issuer Limited Partner on 15 September 2005, to invest in profit
participation securities issued by IKB and, for this purpose, to raise capital by the issuance of debt
securities and to undertake certain activities related thereto. The Issuer is further entitled to engage
in any ancillary businesses which promote the foregoing principal business purpose.
The principal activities of the Issuer correspond with the business purpose stipulated in the limited
partnership agreement. The Issuer has no employees.
Management
The Issuer acts through the Issuer General Partner who has the sole power to represent the partnership. The Issuer General Partner may be contacted at the registered office of the Issuer which is
22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel Islands, telephone no. +44 1534 609000. The
current directors of the Issuer General Partner are:
Name
Function
Gareth Essex-Cater
Director
Louise Kerhoat
Director
Helen Grant
Director
Daniel le Blancq
Director
Each of the above members of the Issuer’s management are employees of the Mourant Group of
which the administrator of the Issuer and Issuer General Partner and Mourant & Co. Trustees Limited
are a part. The relevant parts of the Mourant Group are remunerated in respect of the services supplied.
67
Other than that, there are no potential conflicts of interest between any duties of the Issuer and the
above members of the Issuer’s management and their private interests.
The fiscal year of the Issuer runs from 4 August of each year until 3 August of the next following year.
Auditor
The auditor of the Issuer is PriceWaterhouseCoopers C. I. LLP having its address at 22 Colomberie,
St Helier, Jersey JE1, Channel Islands. All partners of PriceWaterhouseCoopers C. I. LLP are members
of the Institute of Chartered Accountancy (England & Wales).
A copy of the audited accounts of the Issuer may be obtained at the Issuer’s registered office at
22 Grenville Street, St Helier, Jersey JE4 8PX, Channel Islands.
Capital Contributions on the Issue Date
Under the limited partnership agreement, the Issuer General Partner and the Issuer Limited Partner
have agreed to make an initial capital contribution (in relation to each such party, its Capital Contribution) to the Issuer in the following amounts:
5
Issuer General Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuer Limited Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
999
Provided that the Issuer Limited Partner does not become involved with the management of the
Issuer other than in the circumstances provided in the limited partnership agreement, the liability of
the Issuer Limited Partner for the debts or obligations of the Issuer will be limited to its Capital Contribution and any additional capital contribution that it has made or agreed to make to the Issuer.
Capitalisation on the Issue Date
The following table sets forth the Issuer’s contributed capital on the date of its establishment and as
adjusted for the consummation of the transaction:
Contributed Date Capital
5
Date of Establishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issue Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,000
1,000
In addition, as of the Issue Date, the Issuer will have additional liabilities of 5 150,000,000 incurred
under the Securities.
There has been no material adverse change in respect of the capitalisation of the Issuer since the date
of its establishment on 15 September 2005.
68
IKB GROUP
Auditors
KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprfungsgesellschaft, Am
Bonneshof 35, D-40474 Dsseldorf is the independent auditor of IKB Deutsche Industriebank Aktiengesellschaft and IKB Group.
KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprfungsgesellschaft is member of the Wirtschaftsprferkammer of Dsseldorf (WPK).
History and Development of IKB Group
IKB is a German bank organized as a stock corporation (Aktiengesellschaft). Its activities date back to
30 September 1924 when IKB was first incorporated in Berlin as “Bank fr deutsche Industrie-Obligationen” to manage the reparation payments owed by German companies pursuant to the Treaty of
Versailles. In 1931, as “Deutsche Industriebank” IKB moved on to provide trade and long-term fixed
rate investment financing, initially to the agricultural sector and later to medium sized companies.
Although a private bank, IKB is a leading arranger of public programme loans funded by government
promotion agencies. On 29 March 1949 IKB was incorporated in Dsseldorf and is registered today in
Dsseldorf and Berlin for an indefinite period of time as a stock corporation under the laws of
Germany. IKB is registered in the Commercial Registers of the Local Court of Dsseldorf under
No. HRB 1130 and of the Local Court of Berlin-Charlottenburg under No. HRB 8860.
IKB’s financial year runs from 1 April of each calendar year to 31 March of the following calendar year.
IKB has its registered offices in Dsseldorf, at Wilhelm-Btzkes-Strasse 1, D-40474 Dsseldorf, phone
number +49 211 8221-0, and in Berlin, at Markgrafenstrasse 46/47, D-10117 Berlin, phone number
+49 30 31009-0.
In common with all other enterprises engaged in one or more of the financial activities defined in the
German Banking Act (Kreditwesengesetz, KWG) as “banking business”, IKB is subject to the licensing
requirements and other provisions of the KWG. Notably, IKB is subject to supervision by the BaFin.
Business Overview
According to its Articles of Association (Satzung), the object of IKB is the engagement in the promotion of industry and commerce, in particular by the provision of medium- and long-term debt finance
or equity and/or equity surrogates and leasing financing as well as consultancy services in connection therewith. IKB primarily targets companies (usually owned by single persons or families) with
an annual turnover of between 5 10 million and 5 500 million, i. e. the so-called German Mittelstand.
IKB has sold a significant portion of credit risks of its loan portfolio. Furthermore IKB provides
management advisory services and invests in international loan portfolios.
IKB is a specialised bank focusing on long-term corporate financing which comprises especially corporate lending and leasing, real estate financing, structured financing and private equity. IKB operates mainly in Germany but through its branches and subsidiaries as well in other countries (please
see “Organisational Structure”/“Branches and Subsidiaries”). IKB has organised its business activities in the divisions Corporate Lending, Structured Finance, Private Equity, Real Estate Finance and
Treasury/ Financial Markets and the segment Leasing.
Corporate Lending
IKB’s core competence is medium-term and long-term corporate lending to companies of various
industry sectors and with an annual turnover of 5 10 million up to more than 5 500 million (typically
independent and individually or family-owned and managed accordingly), i. e. the so called German
Mittelstand. The Mittelstand represents the backbone of the German economy and includes a num-
69
ber of world market leaders with their specialist niche products and with export ratios of up to 80 %.
According to statistics (survey 2003) of the German Institute of Mittelstand (Institut fr Mittelstandsforschung) companies with up to 500 employees and/or an annual turnover of up to 5 50 million contributed to 45 % of investments, 68 % of employment and 80 % of apprenticeship in Germany.
Loans are generally extended at fixed interest rates with maturities of up to ten years. About 90 % of
IKB’s domestic lending is secured by collateral, usually mortgages on land and buildings and/or the
transfer of equipment for security purposes.
The IKB Group offers advisory and consultancy services to its customers, in particular in the areas of
structuring investments and identifying appropriate public promotion programme loans funded by
KfW, Bayerische Landesanstalt fr Aufbaufinanzierung and European Investment Bank and others
through subsidised public loan programmes. IKB combines such subsidised public programme
loans with its own debt financing products in order to offer tailor-made financing solutions for its
customers. Furthermore, in March 2002, IKB agreed on a 5 500 million global loan with KfW for
financing medium-sized companies. The global loan can be drawn on for individual loans to
medium-sized companies which are not bound by a uniform margin but instead are risk-adjusted in
accordance with the creditworthiness of the customer. In July 2003 and July 2004 the second and
third tranche of this loan was issued having each a volume of 5 500 million.
Structured Finance
The structured finance division covers domestic acquisition and project finance as well as all international activities, i. e. international acquisition finance, Hermes-covered export finance, international project finance and participation in syndicated loans at international financial centres
(London, Paris, New York).
Private Equity
The private equity division comprises the provision of mezzanine and equity capital to established
medium-sized companies by IKB’s subsidiary IKB Private Equity GmbH. Moreover, IKB Private Equity
GmbH finances innovative technology oriented companies, especially in the sectors of biotechnology, telecommunications and data processing.
Real Estate Finance
The real estate finance division provides long-term financing of commercial property, closed-end real
estate funds or structured projects by means of loans; leasing is also available. Moreover, IKB Group
provides consulting services as well as assistance in realizing real estate projects.
Treasury and Financial Markets/ Securitisation
With a volume of 5 5.2 billion at 31 March 2005, IKB has sold a significant portion of credit risks of its
loan portfolio. The bulk of these synthetically executed securitisations were performed using the KfW
PROMISE platform and contain replenishment clauses, meaning that payments that become due can,
in accordance with predetermined parameters, be replenished either in whole or in part.
Within the framework of an investment advice contract until 31 March 2005, IKB has provided management advisory services for an investment portfolio of 5 6.6 billion. Furthermore, IKB provides, together with other banks, liquidity facilities to investment companies, for which IKB receives a commission.
Leasing
IKB Leasing GmbH, IKB Leasing Berlin GmbH and IKB Autoleasing GmbH all 100 % owned by IKB,
focus on equipment leasing operations. Their leasing portfolios are dominated by printing machines,
70
machine tools, injection molding machines, processing centres and industrial lorries, fork lifts and
cars. Activities of IKB Leasing Group also include business in eastern Europe.
IKB Immobilien Leasing GmbH, 50 % owned by IKB, is active in real estate leasing. Operations focus
primarily on production facilities, office buildings and commercial property. Real estate and large
scale plant leasing funds are arranged by IKB Structured Assets GmbH.
Organisational Structure
Capital Structure
The issued and fully paid share capital of IKB at the date of this Prospectus amounts to 5 225,280,000
and is divided into 88 million bearer shares of no par value (Stckaktien), each of which confers one
vote. The largest (indirect) shareholder of IKB is KfW (see “Major Shareholders” below).
The shares of IKB have been admitted for trading and official quotation on the stock exchanges of
Berlin/Bremen, Dsseldorf, Frankfurt am Main, Hamburg and Munich and are traded through the
XETRA Trading System and on the unofficial unregulated markets (Freiverkehr) on the stock
exchanges of Hanover and Stuttgart.
Subordinate Status Report
As at 31 March 2005 the German Federal Government held 80 % of the shares in KfW. At the last two
annual general meetings of IKB, KfW was present with voting rights of more than 50 % and the German Federal Government has material influence on the composition of KfW’s administration board
(Verwaltungsrat). Therefore IKB is deemed dependent on the Federal German Government according
to German company law.
IKB has prepared a subordinate status report for the financial year under review in accordance with
section 312 of the German Stock Corporation Act (Aktiengesetz – AktG). According to the final
declaration of the Board of Managing Directors within the subordinate status report, “IKB received
appropriate consideration for transactions identified in the report entered into with affiliated companies. This assessment is based on the conditions known to us at the time of the events subject to a
reporting requirement. No measures subject to reporting requirements within the meaning of
section 312 of the AktG were carried out or omitted.”
Co-operations
The co-operation with IKB Group’s strategic partner KfW continued to focus on Structured Financing
and Lending during the financial year under review. Jointly at financial year ended 31 March 2005
both companies realised financing volumes of 5 558 million, of which IKB accounted for 5 245 million.
In respect of its 100 % subsidiary IKB Immobilien Leasing GmbH, Dsseldorf, IKB has sold a share of
50 % to KfW with effect of 1 January 2005.
KfW acquired the 50 % stake in IKB Immobilien Leasing GmbH for its future subsidiary KfW IPEX
Bank, with a view to further strengthening the cooperation between IKB Group and KfW. This joint
venture provides KfW-IPEX bank with the opportunity to enter into active property lending and structured big-ticket equipment leasing. The joint subsidiary is thus in a position to explore new client
groups, offer new products (leasing structures for means of transport) and further expedite the internationalisation of the business.
IKB Group also intensified the cooperation with Bankhaus Sal. Oppenheim, a German private bank.
This link allows to offer IKB Group’s clients all those financing tools required by both entrepreneurs
personally and their enterprises. Accordingly, the product range extends from asset management,
through to providing a solution to the challenges posed by succession problems, to structuring of
mergers & acquisitions transactions. Since the cooperation was launched in April 2003, both institu-
71
tions have established contact with 400 companies. Transactions have meanwhile been concluded
with 50, and another 150 are currently being processed. These figures underline the commitment of
both banks to the cooperation.
The cooperation with IKB Group’s French partner Natexis Banques Populaires continues to develop.
Refinancing and ABS transactions were the focal points in the financial year 2004/ 2005.
Due to the cooperation with Italian UniCredito Italiano respectively its investment banking subsidiary
UniCredit Banca Mobiliare (UBM), IKB Group expand its refinancing activities on the Italian market.
With effect of 31 May 2005 IKB Group has acquired UBM’s interest in the Luxembourg-based IKB
Financial Products S. A., which is IKB Group’s centre of expertise for financial risk management
services offered to IKB Group’s clients.
Branches and Subsidiaries
IKB Group’s business is conducted primarily in Germany but includes activities abroad. Apart from its
operations in Dsseldorf and Berlin, IKB maintains branches in Frankfurt am Main, Hamburg, Leipzig,
Munich, Stuttgart and in Luxembourg. IKB maintains further branches in London and Paris and a
representative office in Madrid.
IKB has a banking subsidiary in Luxembourg (IKB International S. A.) and finance subsidiaries in New
York, Delaware, Paris and Amsterdam (IKB Capital Corporation, IKB Funding LLC I and IKB Funding
LLC II, IKB FINANCIERE FRANCE S. A. and IKB FINANCE B. V.).
Through IKB Financial Products S. A., Luxembourg, IKB provides tailor made derivate products to
clients.
Through its consolidated subsidiary IKB Private Equity GmbH, Dsseldorf, IKB provides private
equity and mezzanine instruments to medium- and small-sized companies, to the latter generally in
co-operation with KfW.
Consolidated subsidiaries of IKB further include IKB Data GmbH, Dsseldorf, IMAS Grundstcks-Vermietungsgesellschaft mbH, Dsseldorf and ISTOS Beteiligungs- und Grundstcksgesellschaft mbH,
Dsseldorf.
IKB Immobilien Leasing GmbH, Dsseldorf (please see chapter “Organisational Structure”/“Cooperations”) provides property leasing and structured finance through special purpose vehicles.
Additionally consolidated subsidiaries of IKB include IKB Leasing GmbH, Hamburg, IKB Leasing Berlin GmbH, Erkner, and IKB Autoleasing GmbH, Hamburg, which all concentrate on equipment and
machinery leasing. Furthermore consolidated subsidiaries of IKB comprise IKB Grundstcks GmbH,
Dsseldorf, IKB Grundstcks GmbH & Co. Objekt Uerdinger Strasse KG, Dsseldorf, IKB Grundstcks
GmbH & Co. Objekt Wilhelm-Btzkes-Strasse KG, Dsseldorf, IKB Grundstcks GmbH & Co. Objekt
Degerloch KG, Dsseldorf, IKB Grundstcks GmbH & Co. Objekt Hamburg KG, Dsseldorf, IKB
Grundstcks GmbH & Co. Objekt Holzhausen KG, Dsseldorf, IKB Facility-Management GmbH,
Dsseldorf, IKB Immobilien Management GmbH, Dsseldorf, and AIVG Allgemeine Verwaltungsgesellschaft mbH, Dsseldorf.
In accordance with German law and generally accepted accounting principles, IKB does not consolidate all its subsidiaries.
Trend Information
Save as disclosed in this Prospectus there has been no adverse change in the prospects of IKB since
31 March 2005.
72
Information on known trends, uncertainties, demands, commitments or events that are reasonably
likely to have a material effect on IKB’s prospects:
IKB Group’s change in accounting from German Commercial Code (HGB) to IFRS will take place as
from 31 March 2006.
IKB will continue to expand its investments in international loan portfolios and will continue to pursue its strategy of investing mainly in portfolios comprising AAA- to A-rated exposures.
IKB Group will continue its securitisation transactions for risk and capital management and diversification reasons.
The long-term unsecured senior debt of IKB has been assigned a rating of AA3 by Moody’s and A+ by
Fitch (stable outlook).
Administrative, Management and Supervisory Bodies
Like all German stock corporations, IKB has a two-tier board system. The Board of Directors (Vorstand) is responsible for the management of IKB and the representation of IKB vis--vis third parties,
while the Supervisory Board (Aufsichtsrat) appoints and removes the members of the Board of Directors and supervises the activities of the Board of Directors. The Supervisory Board may not make
management decisions, but under the Articles of Association (Satzung) of IKB, the Board of Directors
must obtain the approval of the Supervisory Board for certain actions.
In accordance with the German Works Constitution Act of 1952 (Betriebsverfassungsgesetz 1952) and
the One Third Participation Act of 2004 (Gesetz ber die Drittelbeteiligung der Arbeitnehmer im Aufsichtsrat), respectively, two thirds of IKB’s Supervisory Board consist of representatives elected by
the shareholders and one third consists of representatives elected by the employees. Members are
elected for three-year terms, and re-election is possible. The members of the Supervisory Board elect
the chairman and the deputy chairman of the Supervisory Board. The chairman, who is typically a
representative of the shareholders, has the deciding vote in the event of a deadlock.
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The current composition of the Supervisory Board and the Board of Directors of IKB is as follows:
Supervisory Board
Dr. h. c. Ulrich Hartmann
Dsseldorf
Chairman of the Supervisory Board of E.ON AG
E.ON-Platz 1
40479 Dsseldorf
Chairman of the Board
Hans W. Reich
Frankfurt am Main
Chairman of the Board of Managing Directors
of KfW Bankengruppe
Palmengartenstrasse 5–9
60325 Frankfurt am Main
Deputy Chairman of the Board
Dr. Alexander v. Tippelskirch
Dsseldorf
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Deputy Chairman of the Board
Dr. Jens Baganz
Dsseldorf
Undersecretary of State, North Rhine-Westphalia
Ministry for the Economy,
Medium-Sized Business and Energy
Horionplatz 1
40213 Dsseldorf
Hermann Franzen
Dsseldorf
Personally Liable Partner of Porzellanhaus
Franzen KG
Knigsallee 42
40212 Dsseldorf
Dr. Jrgen Behrend
Lippstadt
Managing Personally Liable Partner
of Hella KGaA Hueck & Co.
Rixbecker Strasse 75
59552 Lippstadt
Dr. Martin Viessmann
Allendorf
Managing Partner of Viessmann Group
Viessmannstrasse 1
35107 Allendorf
Jrg Asmussen
Berlin
Ministerial Director at the Federal Ministry
of Finance
Wilhelmstrasse 97
10117 Berlin
Roland Oetker, Attorney
Dsseldorf
Managing Partner of ROI Verwaltungsgesellschaft
mbH
Knigsallee 20
40212 Dsseldorf
Dr. Ing. E. h. Eberhard Reuther
Hamburg
Chairman of the Supervisory Board of Krber
Aktiengesellschaft
Kurt-A.-Krber-Chaussee 8–32
21033 Hamburg
Randolf Rodenstock
Munich
Managing Partner of Optische Werke G.
Rodenstock KG
Isartalstrasse 43
80469 Mnchen
Dr. Michael Rogowski
Heidenheim
Chairman of the Shareholder Committee
and the Supervisory Board of Voith AG
St. Pltener Strasse 43
89522 Heidenheim
Dr.-Ing. Mathias Kammller
Ditzingen
Speaker of the Board of TRUMPF
Werkzeugmaschinen GmbH + Co. KG
Johann-Maus-Strasse 2
71254 Ditzingen
Dieter Ammer
Hamburg
Chairman of the Board of Managing Directors
of Tchibo Holding AG
berseering 18
22297 Hamburg
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Employees’ Representatives on the Supervisory Board
Wolfgang Bouch
Dsseldorf
IKB Deutsche Industriebank Aktiengesellschaft
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Andreas Wittmann
Mnchen
IKB Deutsche Industriebank Aktiengesellschaft
Seidelstrasse 27
80335 Mnchen
Wilhelm Lohscheidt
Dsseldorf
IKB Deutsche Industriebank Aktiengesellschaft
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Jrgen Metzger
Hamburg
IKB Deutsche Industriebank Aktiengesellschaft
Heidenkampsweg 79
20097 Hamburg
Rita Rbel
Leipzig
IKB Deutsche Industriebank Aktiengesellschaft
Kthe-Kollwitz-Strasse 84
04109 Leipzig
Dr. Carola Steingrber
Berlin
IKB Deutsche Industriebank Aktiengesellschaft
Markgrafenstrasse 47
10117 Berlin
Ulrich Wernecke
Dsseldorf
IKB Deutsche Industriebank Aktiengesellschaft
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Board of Directors
Dr. Markus Guthoff . . . . . . . . . . . . . . . . . . . . . . . . . . .
Claus Momburg . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joachim Neupel . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stefan Ortseifen, Chairman
(from 9 September 2004) . . . . . . . . . . . . . . . . . . . .
Frank Schnherr . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date Appointed
Current Term Expires
1 April 2001
12 November 1997
1 July 1989
31 March 2007
10 November 2010
31 December 2006
1 November 1994
1 April 2004
31 October 2007
31 March 2007
The business address of all Members of the Board of Directors is at the business address of IKB.
Advisory Board
In addition, IKB maintains an Advisory Board which is appointed by the Board of Directors with consent of the Supervisory Board to enhance contacts with industry and commerce. The members of the
Advisory Board assist IKB’s management by providing consultancy support.
Conflict of Interests
There are no potential conflicts of interests between any duties of IKB of the above members of the
Supervisory Board, Board of Directors or Advisory Board.
Major Shareholders
With an interest of a 37.8 % stake in IKB, KfW Beteiligungsholding GmbH, a wholly-owned subsidiary
of KfW, is the largest single shareholder (as at 31 March 2005) in IKB. Another major shareholder is
the German Trust for Industry Research (Stiftung zur Frderung der Forschung fr die gewerbliche
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Wirtschaft) (11.7 %, as at 31 March 2005). The remaining shares are held by institutional and private
shareholders.
Financial Information concerning IKB’s Assets and Liabilities, Financial Position and Profit and
Losses
Historical Financial Information
IKB Group’s consolidated financial statements of the years ended 31 March 2004 and 2005 including
the auditor’s reports thereon are set out under “Financial Statements of IKB” in this Prospectus.
Auditing of Historical Financial Information
KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprfungsgesellschaft, has
audited the financial statements of IKB and the IKB Group for each of the financial years ended
31 March 2004 and 2005 and in each case issued an unqualified auditor’s report (uneingeschrnkter
Besttigungsvermerk). KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprfungsgesellschaft are independent auditors (Wirtschaftsprfer) within the meaning of German
law Regulating the Profession of Wirtschaftsprfer (Wirtschaftsprfungsordnung).
Interim and other Financial Information
Since the date of its last audited financial statements dated 31 March 2005 IKB has published an
interim report as at 30 June 2005. At the date of this Prospectus, IKB is not legally obligated to publish
any official interim accounts.
Third Party Information and Statement by Expert and Declarations of any interest
The auditor’s reports on IKB Group’s financial statements for the years ended 31 March 2004 and
2005 are incorporated in this Prospectus together with the relevant financial statements of IKB Group
(please refer to the informations given with respect to “Historical Financial Information” and “Auditing of Historical Financial Information”). The auditor’s reports have been issued by IKB Group’s independent auditors. The auditor’s reports have been accurately reproduced and as far as IKB is aware
and is able to ascertain from information published by the auditors, no facts have been omitted
which would render the reproduced information inaccurate or misleading.
76
REGULATION
The following explains certain regulatory matters which are of significance to the business of IKB and
the IKB Group.
The Bank is authorised to conduct general banking business and to provide financial services under
and, subject to the requirements set forth in, the German Banking Act (Gesetz ber das Kreditwesen).
The Bank is subject to comprehensive supervision by the BaFin, which is supported in its function by
the Deutsche Bundesbank, the German central bank.
The German Banking Act
The German Banking Act contains the basic set of rules applicable to German banks, including the
requirement for a banking license, and regulates the business activities of German banks. The BaFin
supervises the operations of banks to ensure that they conduct their business in accordance with the
provisions of the German Banking Act and other applicable German laws and regulations. The BaFin
places particular emphasis on ensuring compliance with:
•
capital adequacy and liquidity requirements;
•
large exposure limits; and
•
restrictions on certain activities imposed by the German Banking Act and the regulations issued
thereunder.
Capital Adequacy Requirements
Current Regulatory Framework
The German capital adequacy requirements provide that banks guard against counterparty risk
(Adressenausfallrisiko) and market risk (Marktrisiko) by possessing certain levels of minimum capital. Counterparty risk is covered by “Regulatory Banking Capital” (haftendes Eigenkapital), whereas
market risk is covered by “Own Funds” (haftende Eigenmittel) comprising Regulatory Banking Capital and “Tier III Capital”. Pursuant to “Principle I” of the BaFin, each bank must maintain a ratio (the
“Solvency Ratio”) of Regulatory Banking Capital to risk adjusted assets (including financial swaps,
financial forward transactions, options, and other off-balance-sheet items) of at least eight per cent.
Pursuant to the German Banking Act, for IKB, as a bank that is organized in the form of a stock corporation, Regulatory Banking Capital (the numerator of the Solvency Ratio) consists of “Core Capital”
(Kernkapital) and “Supplementary”, or “Tier II”, Capital (Ergnzungskapital). The distinction between
Core Capital and Supplementary Capital reflects the different degrees of loss or insolvency protection
provided by the individual Regulatory Banking Capital items. Supplementary Capital may be taken
into account only up to the amount of Core Capital. In addition, longer-term subordinated debt is
recognized as Regulatory Banking Capital only up to 50 per cent. of the amount of Core Capital.
Core Capital comprises:
•
paid-in subscribed capital;
•
capital reserves;
•
retained income;
•
funds for general banking risks (an item that a bank may create on the liability side of its balance
sheet, in its reasonable commercial judgment, to reflect the special risks inherent in its banking
business);
•
capital paid in consideration of silent partnership interests (stille Beteiligungen).
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Supplementary Capital consists of:
•
reserves for general banking risks (a bank may record on its balance sheet certain receivables at a
lower value than that permitted for commercial and other non-banking entities if the use of a
lower value is, in the bank’s reasonable business judgment, advisable to safeguard against the
special risks inherent in the banking business), provided that such reserves do not exceed 4 per
cent. of the book value of such receivables and securities;
•
capital paid in consideration of profit-participation rights (Genussrechte) meeting certain conditions set out in the German Banking Act;
•
longer-term subordinated debt meeting certain conditions set out in the German Banking Act;
•
certain unrealized reserves; and
•
reserves pursuant to § 6b of the German Income Tax Law (Einkommensteuergesetz), 45 per cent.
of such reserves being included in Regulatory Banking Capital to the extent that they were created
from the proceeds of the sale of real property, property rights equivalent to real property, and
buildings.
The German Banking Act requires that the following be deducted in computing Regulatory Banking
Capital:
•
losses;
•
certain intangible assets (including goodwill); and
•
certain participations in banks, financial services institutions or other financial enterprises.
Under Principle I, the risk-adjusted value of assets of a bank (the sum of which is the denominator of
the Solvency Ratio) is computed by assigning assets to one of five basic categories of relative credit
risk (i. e., 0, 10, 20, 50 and 100 per cent.) depending on the debtor or the type of collateral securing the
assets. The balance sheet value of each asset item is multiplied by the percentage weight applicable
to its risk category to arrive at the risk-adjusted value.
Off-balance-sheet items, such as financial guarantees, letters of credit, swaps, and other financial
derivatives, are subject to a two-tier adjustment. First, their value (or in the case of guarantees and
letters of credit, their amount, or in the case of swaps and other derivatives, the value computed on a
market or time basis) is adjusted according to their risk classification (i. e., 20, 50 and 100 per cent.)
depending on the type of instrument. Then the off-balance-sheet items are assigned, similar to
balance-sheet assets, to credit risk categories depending on the type of the counterparty, debtor or
type of collateral, if any, securing the respective assets and multiplied by the applicable percentage
weight.
In addition to the capital adequacy requirements for counterparty risk, Principle I also lays down principles relating to capital adequacy requirements covering market risk. The market-risk positions of a
bank are comprised of:
•
its foreign exchange positions;
•
its commodities positions;
•
certain of its trading book positions, including those involving counterparty risk, as well as interest-rate and share-market risk; and
•
its options transactions positions.
The market risk positions are net positions, risk-adjusted in accordance with the detailed rules set
forth in Principle I. As of the close of each business day, the sum of the net risk-adjusted market-risk
positions of a bank must not exceed the sum of:
•
the difference between its Regulatory Banking Capital and 8 per cent. of its aggregate amount of
risk-adjusted risk assets; and
•
its Tier III Capital.
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Thus, the market risk positions must be covered by Own Funds that are not required to cover counterparty risk.
“Tier III Capital” (Drittrangmittel) consists of:
•
net profits (i. e., the proportionate profit of a bank which would result from closing all trading-book
positions at the end of a given day) less (i) all foreseeable expenses and distributions and
(ii) losses resulting from the investment book that are likely to arise upon a liquidation of the
bank; and
•
short-term subordinated debt meeting certain conditions set out in the German Banking Act,
including a minimum term of two years and the requirement that the rights of the holder thereof
be subordinated to the rights of all other creditors in the event of insolvency or liquidation.
Net profits and short-term subordinated debt qualify as Tier III Capital up to an amount which, together with the Supplementary Capital not required to cover risks arising from the investment book,
does not exceed 250 per cent. of the Core Capital not required to cover risks arising from the investment book.
Under the German Banking Act’s provisions on consolidated supervision, each group of institutions
(Institutsgruppe) on a consolidated basis, as well as each bank within the group on an unconsolidated basis, must meet the Regulatory Banking Capital requirements. A group of institutions is
deemed to exist if:
•
another bank, financial services institution, financial enterprise or bank service enterprise is a subsidiary (nachgeordnetes Unternehmen) of a bank or financial services institution (with subsidiary
being defined in terms of possessing a voting majority or controlling influence of the parent bank
or financial services institution); or
•
a member of the group of institutions:
– owns, directly or indirectly, at least 20 per cent. of the shares of such other bank, financial
services institution, financial enterprise, or bank service enterprise;
– manages such bank, institution or enterprise jointly with other enterprises; and
– is liable for the obligations of such bank, institution or enterprise in proportion to its capital
investment in such bank, institution, or enterprise.
Capital Adequacy Requirements – The Basle II Capital Accord
The capital adequacy requirements applicable to IKB and described in the preceding section are
based on the 1988 capital accord of the Basle Committee of the Bank for International Settlement
(BIS). The Basle Committee is a committee of central banks and bank supervisors/regulators from
the major industrialized countries that develops broad policy guidelines that each country’s supervisors use to determine the supervisory policies that they apply. In January 2001, the BIS released a
proposal to replace the 1988 capital accord with a new capital accord and to overhaul the existing
international capital adequacy standards. The two principal goals of the proposals were to align capital requirements more closely with the underlying risks and to introduce a capital charge for operational risk (comprising, among other things, risks related to certain external factors, as well as to technical errors and errors of employees). Following extensive negotiations, the proposals have been
adopted by the Basle Committee in June 2004 and are expected to become effective as of year-end
2006 or, with regard to the most advanced approaches for risk evaluation, as of year-end 2007. The
Basle II framework comprises three pillars. The first pillar represents a significant amendment of the
minimum requirements under the 1988 capital accord. It requires higher levels of capital for those
borrowers which present higher levels of credit risk and lower level of capital for those borrowers
which present lower levels of credit risk. Moreover, an explicit capital charge for a bank’s exposure to
operational risks such as the risk of losses caused by failures in systems, processes or staff or by
external events is established. Capital charges are aligned more closely to a bank’s internal assessments of its overall risks to ensure that the management is exercising sound judgement and has set
aside adequate capital for its risks. The third pillar aims to enhance the degree of transparency in
banks’ public reporting.
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In July 2004, the European Commission issued its proposed revisions to the Banking Directive 2001/
12//EC which is intended to implement the Basle II framework in a coherent manner throughout the
EU. Under the Basle II capital accord, IKB may need to maintain higher levels of capital for bank regulatory purposes, which could increase its financing costs.
Limitations on Large Exposures
The German Banking Act, together with the regulation on large exposures (Großkredit- und Millionenkreditverordnung, the Large Exposure Regulation), is designed to limit the concentration of credit
risks through restrictions on large exposures (Großkredite, Large Exposures) of banks and groups of
institutions. The Large Exposure rules and the Large Exposure Regulation distinguish between:
•
banks and groups of institutions with minor trading book positions (see “– Capital Adequacy
Requirements – Current Regulatory Framework”) that are not subject to the rules relating to the
trading book; and
•
banks and groups of institutions which are subject to the rules relating to the trading book (Trading Book Institutions).
For Trading Book Institutions, the Large Exposure rules contain different restrictions for Large Exposures related to the investment book (Investment Book Large Exposures) and aggregate large exposures (Aggregate Book Large Exposures) of the bank or group of institutions. Investment Book Large
Exposures exist where the assets of a bank attributable to a single client or connected group of clients
equals or exceeds 10 per cent. of the relevant bank’s or group of institutions’ Regulatory Banking
Capital. Aggregate Book Large Exposures mean situations in which the aggregate of the Investment
Book Large Exposures and the exposures incurred in the trading book (including the net amount of
all long and short positions in debt instruments and shares of an individual issuer, the counterparty
risk of certain derivatives, the counterparty risk after the agreed date of settlement, and repurchase
and securities lending transactions) attributable to a single client or connected group of clients (the
Trading Book Large Exposures) equal or exceed 10 per cent. of the relevant bank’s or group of institutions’ Own Funds.
The following limitations apply to Large Exposures of Trading Book Institutions:
•
all Aggregate Book Large Exposures taken together must not exceed eight times such bank’s or
group’s Own Funds;
•
the Investment Book Large Exposures must not exceed in the aggregate eight times such bank’s or
group’s Regulatory Banking Capital;
•
the Investment Book Large Exposures to a single client or group of clients must not exceed 25 per
cent. of the bank’s or group of institutions’ Regulatory Banking Capital;
•
Investment Book Large Exposures in relation to an affiliated enterprise of the bank or group of
institutions outside the group of institutions must not exceed 20 per cent. of the bank’s or group
of institutions’ Regulatory Banking Capital;
•
the aggregate amount of Trading Book Large Exposures and Investment Book Large Exposures to
a client or group of clients must not exceed 25 per cent. of the bank’s or group of institutions’ Own
Funds; and
•
the aggregate amount of Trading Book Large Exposures and Investment Book Large Exposures
must not exceed 20 per cent. of the bank’s or group of institutions’ Own Funds.
With the approval of the BaFin, a bank or group of institutions may exceed these thresholds.
The term “group of institutions” for purposes of the Large Exposure limitations is defined in the
same manner as for capital adequacy purposes. See “– Capital Adequacy Requirements”.
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Financial Statements and Audits
The financial statements on the basis of which compliance with the capital adequacy requirements is
assessed must be prepared in accordance with the German Commercial Code (Handelsgesetzbuch)
and the Regulation on Accounting by Credit Institutions (Verordnung ber die Rechnungslegung der
Kreditinstitute).
Under German law, IKB must be audited annually by a certified public accountant (Wirtschaftsprfer)
who has been appointed by the shareholders’ general meeting and mandated by the supervisory
board. A bank’s certified public accountant is required to inform the BaFin of any facts coming to the
accountant’s attention which give reason to deny or qualify the certifications of the bank’s annual
financial statements or adversely affect the financial position of the bank, as well as of any material
breach by the bank’s management of the law or the bank’s statutes. The certified public accountant is
required to prepare a detailed and comprehensive annual audit report (Prfungsbericht), which is
submitted to the supervisory board of the bank, the BaFin, and the Bundesbank. In the report, the
accountant must confirm that the bank has complied with:
•
the regulatory reporting requirements;
•
the Large Exposures limitations;
•
the limitations on extension of credit to borrowers forming a unit of borrowers;
•
the principles as to capital adequacy and liquidity; and
•
regulations concerning the prudential granting of credit.
In addition, the audit report must:
•
discuss in detail certain large loans and other important loans;
•
confirm compliance with certain provisions of the German Banking Act;
•
match assets and liabilities bearing interest at fixed rates according to maturity and assets and
liabilities bearing interest at floating rates according to interest periods; and
•
explain the effect of a change in interest rates on the unmatched portion of such assets and liabilities.
Reporting Requirements
In order to enable the BaFin and the Bundesbank to monitor compliance with the German Banking
Act and other applicable legal requirements, banks are required to file the following information with
the BaFin and the Bundesbank:
•
immediate notice of certain organizational changes, the acquisition or sale of more than 10 per
cent. of the equity of another company or changes in the amount of such equity share, loss of
25 per cent. of the Regulatory Banking Capital, the commencement or termination of certain nonbanking activities, the acquisition or termination of a significant participation in the bank, the
bank’s status as a subsidiary, the existence, change in or termination of any “close relationship”
with another company (i. e., ownership of at least 20 per cent. of the capital or voting rights);
•
on an annual basis, audited unconsolidated and consolidated financial statements for the bank;
•
on a monthly basis, balance sheet and statistical information;
•
on a monthly basis, compliance statements with regard to the capital adequacy rules and the
requirements on liquidity; and
•
on a quarterly basis, a list of the borrowers to whom the reporting bank has granted loans of 5 1.5
million or more and certain information about the amount and the type of loan, including syndicated loans exceeding this amount even if the reporting bank’s share does not exceed 5 1.5 million.
If several different banks notify the Bundesbank of loans of 5 1.5 million or more to the same borrower, the Bundesbank must inform each of the reporting banks of the total reported indebtedness
and of the type of such indebtedness of the borrower.
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Enforcement of Banking Regulations and Investigative Powers
To ensure that German banks fully comply with all applicable regulatory and reporting requirements,
the BaFin requires that banks maintain an effective internal auditing department to monitor and control their activities. In order to secure compliance with the German Banking Act and the regulations
issued thereunder, the BaFin and the Bundesbank may require information and documents from a
bank and the BaFin may conduct investigations of a bank. In addition, the BaFin may attend or convene meetings of the bank’s supervisory board and of the bank’s shareholders.
The BaFin has a wide range of enforcement powers. It can remove the bank’s managers from office or
prohibit them from engaging in banking activities. If the Own Funds of a bank are not adequate or if
the liquidity requirements are not met (provided that the bank has failed to remedy the deficiency
within a certain period), the BaFin may prohibit or restrict the distribution of profits or the extension
of credit. These prohibitions also apply to the parent bank of a group of institutions if the Own Funds
of the bank’s group enterprises do not meet the legal requirements. If the liquidity requirements are
not met, the BaFin may also prohibit further investments in illiquid assets.
If a bank is in danger of defaulting on its obligations to creditors, the BaFin may take emergency
measures to avert a default, including, among others:
•
issuing instructions relating to the management of the bank;
•
prohibiting the acceptance of deposits and the extension of credit;
•
prohibiting or restricting the managers of the bank from carrying on their functions; and
•
appointing supervisors.
•
If these measures are inadequate to remedy the situation, the BaFin may revoke the bank’s license
and, if appropriate, order that the bank be shut down. In order to prevent the insolvency of a bank,
the BaFin has the authority to:
•
prohibit payments and disposals of assets;
•
close customer services; and
•
prohibit the acceptance of payments other than in payment of a debt owed to the bank.
Violations of the German Banking Act may result in criminal and administrative penalties.
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TAXATION
The statements below regarding taxation are based on the law and practice of the relevant specified
jurisdiction at the date of this Prospectus and are subject to any subsequent changes in law or practice (which could be made on a retroactive basis). The following statements do not constitute tax
advice and do not purport to be a comprehensive description of all of the tax considerations that
may be relevant to a decision to purchase, own or dispose of the Securities and may not apply
equally to all persons. Prospective purchasers of the Securities are advised to consult their own tax
advisers concerning the tax consequences of their ownership of the Securities.
Taxation in Jersey
Investors (other than residents of Jersey) are not subject to any tax in Jersey in respect of the holding,
sale or other disposition of Securities. Payments of interest on Securities will be made by the Issuer
without withholding or deduction for or on account of Jersey income tax.
No stamp duties are payable in Jersey on the acquisition, ownership, redemption, sale or other disposal of Securities. Stamp duty is payable in Jersey on the registration of Probate or Letters of
Administration relating to the death of an individual holder of Securities with assets situate in Jersey
(which may, in some circumstances, extend to the Securities) which is calculated by reference to the
value of the holder’s estate in Jersey.
Taxation in the Federal Republic of Germany
This section “Taxation in the Federal Republic of Germany” contains a summary of some important
German fiscal provisions that are relevant in connection with the acquisition, the holding and the sale
or redemption of the Securities. This summary is not intended to be a comprehensive and complete
representation of all aspects that could be relevant to investors under German tax law. It is based on
the German tax law in force at the time of preparing this Prospectus which may change at short
notice, even with retroactive effect. We therefore strongly recommend that potential investors seek
advice from their professional tax advisors with respect to the tax implications of the acquisition, the
holding and the sale or redemption of Securities.
Investors tax resident in Germany
All interest payments including interest having accrued up to the disposal of the Security and credited separately (Accrued Interest) made by the Issuer to investors tax resident in Germany (persons
whose residence, habitual abode, statutory seat, or place of effective management and control is
located in Germany) are subject to income or corporate tax plus solidarity surcharge in the amount
of 5.5 per cent. of the relevant income or corporate tax liability. If Securities are held as a non-business asset, any Accrued Interest paid upon the acquisition of Securities may give rise to negative
income and may, therefore, reduce such Securityholder’s personal or corporate income tax liability.
If Securities are held as assets of a German commercial business, these interest payments are subject
to trade tax (Gewerbesteuer) also. If Securities are held in a custodial account maintained with a bank
or financial services provider in Germany, including branches of foreign banks or financial services
providers in Germany (the Disbursing Agent – inlndische Zahlstelle), withholding tax on interest
income (Zinsabschlagsteuer) in the amount of 30 per cent. (plus 5.5 per cent. solidarity surcharge
thereon, i. e. a total of 31.65 per cent.) will be withheld from the gross amount of the interest payments (including Accrued Interest). Tax withheld by the Disbursing Agent will be credited against the
final German income or corporate tax burden of the Securityholder.
No tax is withheld by the Disbursing Agent, if the Securityholder is an individual who has filed a certificate of exemption (Freistellungsauftrag) with the Disbursing Agent and the Securities held by such
individual are not part of a German commercial business property or generate income from the letting and leasing of property. However, this exemption applies only to the extent that the aggregate
interest income derived from the Securities, together with an individual’s other investment income
administered by the Disbursing Agent, does not exceed the maximum annual exemption amount
83
shown on the certificate of exemption (up to 5 1,370 for individuals and 5 2,740 for married couples
filing jointly). No withholding obligation exists also, if the Securityholder submits to the Disbursing
Agent a certificate of non-assessment (Nichtveranlagungsbescheinigung) issued by the local tax
office.
Profits from the sale or redemption of the Securities, including the profits achieved by a second or
subsequent purchaser, are deemed to be interest income and are subject to personal income or corporate tax plus solidarity surcharge thereon under German tax law. If Securities are held as part of a
German commercial business, such profits are subject to trade tax also. The taxable profit from the
sale or redemption of Securities is calculated as the difference between the proceeds from the sale or
redemption and the purchase price of the Securities (so-called Marktrendite). For Securities held in a
custodial account maintained with a Disbursing Agent since the acquisition of the Securities, the Disbursing Agent will be required to withhold tax in the amount of 30 per cent. (plus a 5.5 per cent. solidarity surcharge) of the difference between the sale or redemption proceeds and the purchase price
paid for the Securities. If the Disbursing Agent has changed since the acquisition of the Securities, tax
is withheld in the amount of 30 per cent. of the sale or redemption proceeds (plus solidarity surcharge
of 5.5 % thereon). The tax withheld will be credited against the final German income or corporate tax
burden of the Securityholder.
No tax will be withheld, if the Securityholder is an individual whose Security does not form part of the
property of a German business nor gives rise to income from the letting and leasing of property and
who filed a certificate of exemption (Freistellungsauftrag) with the Disbursing Agent to the extent that
the interest income derived from the Security together with other investment income does not
exceed the maximum exemption amount shown on this certificate (see above Interest Payments).
The same applies if the Securityholder submits to the Disbursing Agent a certificate of non-assessment (Nichtveranlagungsbescheinigung) issued by the local tax office.
Non-resident investors
Interest paid to a Securityholder and profits from the sale or redemption realized by a Securityholder
not resident in Germany will generally not be taxable in Germany and no tax will be withheld (even if
the Securities are kept with a Disbursing Agent). Exemptions apply, for example, (i) if the Securities
are held as a business asset of a German permanent establishment or by a permanent representative
of the non-resident Securityholder, (ii) if the interest income of such Securities does otherwise constitute German source income or (iii) if the non-resident Securityholder does not comply with the procedural rules to prove his status as a non-tax resident. In these cases, the Securityholder not resident
in Germany will be subject to a tax regime similar to that described above under “Investors tax resident in Germany”.
Inheritance and Gift Tax
The transfer of Securities in case of succession upon death, or by way of a gift among living persons
is subject to German inheritance and/or gift tax, if the deceased, donor and/or the recipient is a German resident. German inheritance and gift tax is also triggered if neither the deceased, the donor nor
the recipient of the Securities are German residents, if the Securities are attributable to German business activities and if a German permanent establishment is maintained for such business activities or
a permanent representative is appointed in Germany. In specific situations, also German expatriates
that have been tax resident in Germany may be subject to inheritance and gift tax. Double taxation
treaties may provide for exceptions to the German inheritance and gift tax regulations.
European Union Directive on the Taxation of Savings Income
Under the EU Council Directive 2003/48/EU on the taxation of savings income. Member States are
required to provide to the tax authorities of another Member State details of payments of interest (or
similar income) paid by a person within its jurisdiction to an individual resident in that other Member
State. However, for a transitional period, Belgium, Luxembourg and Austria are instead required (unless during that period they elect otherwise) to operate a withholding system in relation to such payments (the ending of such transitional period being dependent upon the conclusion of certain other
84
agreements relating to information exchange with certain other countries). A number of non-EU
countries and territories have (agreed to) adopt(ed) similar measures.
Germany has implemented the Savings Directive through the Interest Information Regulation (Zinsinformationsverordnung – ZIV) of 26 January 2004.
Jersey and the European Union Directive on the Taxation of Savings Income
As part of an agreement reached in connection with the European Union directive on the taxation of
savings income in the form of interest payments, and in line with steps taken by other relevant third
countries, Jersey introduced with effect from 1 July 2005 a retention tax system in respect of payments of interest, or other similar income, made to an individual beneficial owner resident in an EU
Member State by a paying agent established in Jersey. The retention tax system applies for a transitional period prior to the implementation of a system of automatic communication to EU Member
States of information regarding such payments. During this transitional period, such an individual
beneficial owner resident in an EU Member State will be entitled to request a paying agent not to
retain tax from such payments but instead to apply a system by which the details of such payments
are communicated to the tax authorities of the EU Member State in which the beneficial owner is
resident.
The retention tax system in Jersey is implemented by means of bilateral agreements with each of the
EU Member States, the Taxation (Agreements with European Union Member States) (Jersey) Regulations 2005 and Guidance Notes issued by the Policy & Resources Committee of the States of Jersey.
Based on these provisions and what is understood to be the current practice of the Jersey tax authorities, the Issuer would not be obliged to levy retention tax in Jersey under these provisions in respect
of interest payments made by it to a paying agent established outside Jersey.
85
SUBSCRIPTION AND SALE
Under a subscription agreement dated 27 September 2005, BNP Paribas has agreed to subscribe for
the aggregate principal amount of 5 150,000,000 Securities at the price of 100 per cent. of their principal amount in order to sell the Securities to investors. Certain commissions are being paid to BNP
Paribas by IKB in connection with the issue of the Securities.
IKB has undertaken to indemnify and hold harmless BNP Paribas against certain liabilities incurring
in the context of the subscription and sale of the Securities. The Subscription Agreement entitles BNP
Paribas to terminate it in certain circumstances prior to the issue of, and payment for, the Securities.
BNP Paribas or its affiliates have provided from time to time, and expect to provide in the future,
investment services to the IKB group, for which BNP Paribas or its affiliates have received or will
receive customary fees and commissions.
There are no interests of natural and legal persons involved in the issue, including conflicting ones,
that are material to the issue.
Selling Restrictions
United States
BNP Paribas has represented and agreed that, except as permitted by the Subscription Agreement, it
will not offer or sell the Securities within the United States of America or to, or for the account or
benefit of, U. S. persons (i) as part of its distribution at any time or (ii) otherwise until 40 days after
the later of the closing date and the completion of the distribution of the Securities, and it will send
to each dealer to which it sells Securities during the 40 day distribution compliance period a confirmation or other notice setting forth the restrictions on offers and sales of the Securities within the
United States of America or to, or for the account or benefit of, U. S. persons. Terms used in this paragraph have the meanings given to them by Regulation S under the Securities Act.
In addition, until 40 days after the commencement of the offering, an offer or sale of the Securities
within the United States of America by any dealer (whether or not participating in the offering) may
violate the registration requirements of the Securities Act.
The Securities may not be purchased by or transferred to any employee benefit, plan subject to Title I
of the U. S. Employee Retirement Income Security Act of 1974, as amended, any plan or arrangement
subject to Section 4975 of the Code, or any entity whose underlying assets include the assets of any
such employee benefit plans, plan or arrangements.
European Economic Area
In relation to each Member State of the European Economic Area (*) which has implemented the Prospectus Directive (each, a Relevant Member State), BNP Paribas has represented and agreed that
with effect from and including the date on which the Prospectus Directive is implemented in that
Member State (the Relevant Implementation Date) it has not made and will not make an offer of
Securities to the public in that Relevant Member State prior to the publication of a prospectus in relation to the Securities which has been approved by the competent authority in that Relevant Member
State in accordance with the Prospectus Directive or, where appropriate, published in another Relevant Member State and notified to the competent authority in that Relevant Member State in accordance with Article 18 of the Prospectus Directive, except that it may, with effect from and including the
Relevant Implementation Date, make an offer of Securities to the public in that Relevant Member
State at any time:
(a) to legal entities which are authorised or regulated to operate in the financial markets or, if not so
authorised or regulated, whose corporate purpose is solely to invest in securities;
(*) The EU plus Iceland, Norway and Liechtenstein.
86
(b) to any legal entity which has two or more of (1) an average of at least 250 employees during the
last fiscal year; (2) a total balance sheet of more than 5 43,000,000 and (3) an annual turnover of
more than 5 50,000,000, as shown in its last annual or consolidated accounts; or
(c) in any other circumstances which do not require the publication by the Issuer of a prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of Securities to the public” in relation to
any Securities in any Relevant Member State means the communication in any form and by any
means of sufficient information on the terms of the offer and the Securities to be offered so as to
enable an investor to decide to purchase or subscribe the Securities, as the same may be varied in
that Member State by any measure implementing the Prospectus Directive in that Member State and
the expression “Prospectus Directive” means Directive 2003/71/EC of the European Parliament and of
the Council of 4 November 2003 on the prospectus to be published when securities are offered to the
public or admitted to trading and includes any relevant implementing measure in each Relevant
Member State.
United Kingdom of Great Britain and Northern Ireland
BNP Paribas has represented and agreed that:
(a) (i) it is a person whose ordinary activities involve it in acquiring, holding, managing or disposing
of investments (as principal or agent) for the purposes of its business and (ii) it has not offered or
sold and will not offer or sell the Securities other than to persons whose ordinary activities involve
them in acquiring, holding, managing or disposing of investments (as principal or as agent) for
the purposes of their businesses or who it is reasonable to expect will acquire, hold, manage or
dispose of investments (as principal or agent) for the purposes of their businesses where the issue
of the Securities would otherwise constitute a contravention of Section 19 of the FSMA by the
Issuer;
(b) it has only communicated or caused to be communicated and will only communicate or cause to be
communicated an invitation or inducement to engage in investment activity (within the meaning of
Section 21 of the FSMA) received by it in connection with the issue or sale of the Securities in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer or the Guarantor; and
(c) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Securities in, from or otherwise involving the United Kingdom.
France
BNP Paribas has represented and agreed that it has not offered, sold or otherwise transferred and will
not offer, sell or otherwise transfer, directly, or indirectly, the Securities to the public in the Republic
of France and that any offers, sales or other transfers of Securities in the Republic of France will be
made only to qualified investors (investisseurs qualifis), and/or to a restricted circle of investors
(cercle restreint d’investisseurs), provided that such investors are acting for their own account, and/
or to persons providing portfolio management financial services (personnes fournissant le service
d’investissement de gestion de portefeuille pour compte de tiers), all as defined and in accordance
with Articles L. 411-2, D. 411-1 and D.411-2 of the French Code montaire et financier. The Securities
have not been and will not be subject to any approval by or registration (visa) with the French Autorit des Marchs Financiers.
In addition, BNP Paribas has represented and agreed that it has not distributed or caused to be distributed and will not distribute or cause to be distributed in the Republic of France this Prospectus or
any other offering material relating to the Securities other than to investors to whom offers, sales or
other transfers of the Securities in the Republic of France may be made as described above.
Italy
The offering of the Securities has not been and will not be registered pursuant to the Italian securities
legislation and the Securities – be it in the primary or in the secondary market – may not be offered,
87
sold and/or delivered to any individuals in Italy, nor may any document relating to the Securities be
distributed to any individuals in Italy. Accordingly, BNP Paribas has represented that it has not offered or sold, and will not offer or sell, any Securities in the Republic of Italy in a solicitation to the
public, and that sales of the Securities in the Republic of Italy shall be effected in accordance with all
Italian securities, tax, exchange control and other applicable laws and regulations.
BNP Paribas has represented that it will not offer, sell or deliver any Securities or distribute copies of
the Prospectus or any other document relating to the Securities in the Republic of Italy except to “Professional Investors” (which does not include individuals), as defined in Article 31.2 of CONSOB Regulation No. 11522 of 1 July 1998 (“Regulation No. 11522”), as amended, pursuant to Articles 30.2 and
100 of Legislative Decree No. 58 of 24 February 1998, as amended (“Decree No. 58”), or in any other
circumstances where an express exemption from compliance with the solicitation restrictions provided by Decree No. 58 or CONSOB Regulation No. 11971 of 14 May 1999, as amended, applies, provided however, that any such offer, sale or delivery of Securities or distribution of copies of the Prospectus or any other document relating to the Securities in the Republic of Italy must be:
(a) made by investment firms, banks or financial intermediaries permitted to conduct such activities
in the Republic of Italy in accordance with Legislative Decree No. 385 of 1 September 1993, as
amended (“Decree No. 385”), Decree No. 58, Regulation No. 11522 and any other applicable laws
and regulations;
(b) in compliance with Article 129 of Decree No. 385 and the implementing instructions of the Bank of
Italy (Istruzioni di vigilanza della Banca d’Italia), pursuant to which the issue, offer or placement of
securities in Italy is subject to prior notification to the Bank of Italy, unless an exemption, depending, inter alia, on the aggregate amount of the Securities, offered or placed in Italy and their characteristics, applies; and
(c) in compliance with any other applicable notification requirement or limitation which may be
imposed by CONSOB or the Bank of Italy.
Jersey
BNP Paribas has represented and agreed that it has not offered or sold, and will not offer or sell, the
Securities to any person resident for income tax purposes in Jersey.
General
In addition to the specific restrictions set out above, BNP Paribas agrees that it will observe all applicable provisions of law in each jurisdiction in or from which it may offer Securities or distribute any
offering material.
Delivery of the Securities
The Securities will initially be represented by a temporary global security in bearer form without coupons which will be exchanged not earlier than 40 days and not later than 180 days into a permanent
global security in bearer form without coupons upon certification as to non U. S. beneficial ownership of the Securities in accordance with the practices of Clearstream Frankfurt. Both the temporary
and the permanent global security will be deposited with and held by Citibank N. A. and will bear the
handwritten signature of the Issuer’s management.
If the Issuer becomes legally obliged to issue Securities in definitive form in accordance with their
terms and conditions, or if Clearstream Frankfurt should be closed for business for a period of 21 consecutive Business Days or should announce an intention permanently to cease business and no substitute clearing system should be available, the global security will be exchanged for Securities in
definitive bearer form. In this case, Securities in definitive bearer form will be issued which will either
have coupons attached or have a grid for recording the coupon payments endorsed thereon. Other
than as described in the immediately preceding sentences, the Securityholders shall have no right to
require the issue of definitive certificates representing individual Securities and interest coupons.
88
Co-ownership interests in Securities may be transferred according to the applicable rules of Clearstream Frankfurt, Euroclear and Clearstream Luxembourg. It is expected that the delivery of the Securities will be made through Clearstream Frankfurt against payment therefor in immediately available
funds on 29 September 2005. Physical certificates or interest coupons will not be issued. A copy of
the global security will be available free of charge with the paying agents named below.
The Securities will be admitted to trading on the Irish Stock Exchange on 29 September 2005. Application will be made to list the Securities on the Luxembourg Stock Exchange.
89
GENERAL INFORMATION
Subject of this Prospectus
The subject of this Prospectus are the 5 150,000,000 Dated Upper Tier 2 Securities.
Clearing Codes
The Securities have been accepted for clearance through the facilities of Clearstream Frankfurt, Euroclear and Clearstream Luxembourg under the following clearance codes:
ISIN: DE000A0GF758
WKN: A0GF75
Common Code: 023133172
Issue Date
The Securities will be issued on 29 September 2005. The rights attached to the Securities take effect
as of such Issue Date.
Yield to Maturity
The yield to maturity is 3.769 per cent per annum.
Listing Documents for Inspection
Application has been made to the Irish Financial Services Regulatory Authority, as competent authority under the Prospectus Directive (as defined herein), for this Prospectus to be approved. Application
has been made to the Irish Stock Exchange for the Securities to be admitted to the Official List and
trading on its regulated market. So long as the Securities are listed on the Irish Stock Exchange, the
Issuer will maintain a paying agent in Ireland and, so long as the Securities are listed on the Luxembourg Stock Exchange, the Issuer will maintain a paying agent in Luxembourg.
At any time during the term of the Securities the most recently published consolidated and non-consolidated audited annual financial statements and consolidated unaudited interim financial reports of
IKB, and, once available, the most recently available annual accounts of the Issuer, will also be available for inspection and obtainable free of charge at the offices of the Principal Paying Agent in Frankfurt am Main, the Irish Paying Agent and the Luxembourg Paying Agent.
IKB has published an interim report as at 30 June 2005. IKB Group is not obliged to publish any
further interim reports at the date of this Prospectus. The Issuer does not prepare interim financial
statements.
In addition, the following documents will be available in physical form for inspection and obtainable,
free of charge, at any time as long as any Securities are outstanding at the offices of the Issuer and, at
any time as long as the Securities are listed on the Irish Stock Exchange, at the offices of the Irish
Paying Agent and, at any time as long as the Securities are listed on the Luxembourg Stock Exchange,
at the offices of the Luxembourg Paying Agent:
(a) the Statutes (Satzung) of IKB;
(b) the Partnership Agreement of the Issuer; and
(c) the consents and authorisations referred to under “Authorisations” below.
90
Copies of these documents as well as copies of the global security representing the Securities, the
Loan Agreement, the Indemnity Agreement, the Fiduciary Assignment Agreement, the financial
statements and interim financial information in physical form are also available at the head office of
IKB, Wilhelm-Btzkes-Strasse 1, 40474 Dsseldorf, Germany.
Notices
All notices to the Securityholders will be given by the Issuer (i) by mail, fax or electronically to Clearstream Frankfurt, Clearstream Luxembourg and Euroclear, (ii) so long as any of the Securities are
listed on the Irish Stock Exchange and the Irish Stock Exchange so requires to the Company
Announcement Office of the Irish Stock Exchange through the Irish Paying Agent and (iii) so long as
any of the Securities are listed on the Luxembourg Stock Exchange and the Luxembourg Stock
Exchange so requires, by publication in a leading newspaper having general circulation in Luxembourg (which is expected to be the Tageblatt (Luxembourg)) or by publication on the website of the
Luxembourg Stock Exchange (www.bourse.lu). The contents of the website of the Luxembourg Stock
Exchange do not form part of this Prospectus.
No Material Change
Since its date of formation, the Issuer has not commenced operations and no financial statements
have been made up as at the date of this Prospectus. Save as disclosed herein, there has been no
significant change in the financial position of IKB or the IKB Group since the date of its last published
audited annual report. Furthermore, save as disclosed herein, there has been no material adverse
change in the prospects of the Issuer since its formation on 15 September 2005 or IKB or the IKB
Group since the date of its last published audited annual report.
Authorisations
The issue of the Securities by the Issuer has been duly authorised by a board resolution of the Issuer
General Partner dated 26 September 2005.
Legal status
The Issuer was registered under the name “ProPart Funding Limited Partnership” under the Limited
Partnerships (Jersey) Law 1994, as amended, on 16 September 2005. The Issuer was established on
15 September 2005 for an unlimited duration, is not a legal entity separate from its partners and has
no operating history.
IKB operates under German law. IKB is registered in the commercial register (Handelsregister) of the
lower court (Amtsgericht) in Dsseldorf (HRB 1130) and Berlin (HRB 8860) and has been established
for an unlimited duration.
Litigation and Arbitration Proceedings
Save as disclosed in this Prospectus, neither IKB nor the Issuer is nor has been engaged in any governmental, legal or arbitration proceedings which may have, or have had in the recent past, significant
effects on the financial position or profitability of the Issuer, IKB or the IKB Group nor, as far as IKB and
the Issuer is aware, are any such governmental, legal or arbitration proceedings pending or threatened.
Subsidiaries
A selective overview of IKB’s equity participations as at 31 March 2005 is set out in the published consolidated audited financial statements of IKB for the year ended 31 March 2005.
91
Auditors
The consolidated financial statements of IKB have been audited without qualification for the two financial years ended 31 March 2005 and 31 March 2004 by KPMG Deutsche Treuhand-Gesellschaft
Aktiengesellschaft Wirtschaftsprfungsgesellschaft, Dsseldorf, Germany.
92
FINANCIAL STATEMENTS OF IKB
Audited consolidated annual financial statements for the financial year ended 31 March 2005
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auditors’ Report (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-2
F-4
F-24
F-10
F-12
F-41
Audited unconsolidated annual financial statements for the financial year ended
31 March 2005
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-6
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-8
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-10
Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-12
Auditors’ Report (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-41
Audited consolidated annual financial statements for the financial year ended 31 March 2004
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auditors’ Report (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-42
F-43
F-64
F-50
F-52
F-80
Audited unconsolidated annual financial statements for the financial year ended
31 March 2004
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auditors’ Report (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-46
F-48
F-50
F-52
F-80
Unaudited consolidated interim financial statements as of 30 June 2005
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-82
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-84
Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-86
(1) The Auditor’s Reports relate to the respective financial statements and the related Group and IKB Management
Report (zusammengefasster Lagebericht).
F-1
Consolidated Balance Sheet of IKB Deutsche Industriebank
€ thousand*
Assets
Cash reserve
a) Cash on hand
b) Balances with central banks
thereof: with Deutsche Bundesbank
c) Balances in postal giro accounts
33 135
31 March 2004
€ thousand
47
33 224
88
33 688
91
33 362
198
33 974
784 380
604 308
1 388 688
24 354 085
1 070 176
168 225
1 238 401
24 115 962
–
10 427 380
10 427 380
–
8 171 336
8 171 336
40 662
40 035
10 468 042
8 211 371
22 580
86 514
39 559
40 082
7 026
5 313
31 528
32 539
3 997
5 041
2 709
251 526
926 529
–
660 872
112 055
38 302 558
2 329
262 417
2 230 731
27 404
555 757
108 438
36 956 273
(33 574)
Loans and advances to banks
a) payable on demand
b) Other placements, loans and advances
Loans and advances to customers
thereof: Loans to local authorities
31 March 2005
€ thousand
1 556 688 (1 361 019)
Bonds and notes
and other fixed-income securities
a) Bonds and notes
aa) public-sector issuers
ab) other issuers
thereof: securities eligible as collateral
with Deutsche Bundesbank
5 204 662 (4 836 910)
b) own bonds issued
nominal amount
38 890
(37 962)
Equities and other
non-fixed income securities
Investments
thereof: in banks
thereof: in financial services providers
Investments in associated companies
thereof: in banks
thereof: in financial services providers
Interests in affiliated companies
thereof: in banks
thereof: in financial services providers
Trust assets
thereof: Trustee loans
Intangible assets
Tangible fixed assets
Leased assets
Unpaid contributions by minority shareholders
Other assets
Deferred items
Total assets
37 055
–
(37 055)
(–)
–
7 026
(–)
(5 313)
–
–
(–)
(–)
3 152
(3 629)
* in parentheses: Previous year’s figures
F-2
as at 31 March 2005
Liabilities
Liabilities to banks
a) payable on demand
b) with agreed term or period of notice
€ thousand*
Liabilities to customers
Other liabilities
a) payable on demand
b) with agreed term or period of notice
Securitised liabilities
Bonds issued
Trust liabilities
thereof: Trustee loans
Other liabilities
Deferred items
Provisions
3 152
31 March 2004
€ thousand
1 424 075
10 663 520
12 087 595
989 391
14 122 818
15 112 209
75 191
1 912 372
1 987 563
52 210
2 176 077
2 228 287
18 914 013
3 997
14 733 551
5 041
478 621
266 051
531 303
315 947
141 080
135 675
158 548
67 587
367 215
–
1 165 308
592 630
110 203
64 253
310 131
3 576
1 041 756
562 630
80 000
142
80 000
–2 421
225 280
225 280
570 000
475 069
1 045 069
567 416
570 000
250 000
820 000
567 416
2 399
–
448 859
451 258
70 400
2 359 423
38 302 558
2 399
–
348 768
351 167
70 400
2 034 263
36 956 273
1 209
2 486 275
2 487 484
1 538
1 873 977
1 875 515
9 298 625
8 720 136
(3 629)
a) provisions for pensions
and similar obligations
b) provisions for taxes
c) other provisions
Special tax-allowable reserves
Subordinated liabilities
Profit-participation certificates (Genussscheinkapital)
thereof: Maturing within two years
184 065
Fund for general banking risks
Minority interest
Equity
a) subscribed capital
conditional capital:
22 528
b) hybrid capital
ba) silent partnership contributions
bb) preferred shares
31 March 2005
€ thousand
(92 033)
(22 528)
c) capital reserves
d) revenue reserves
da) legal reserves
db) reserves for treasury shares
dc) other revenue reserves
e) consolidated profit
Total liabilities
Contingent liabilities
a) contingent liabilities from discounted forwarded bills
b) liabilities from guarantees and indemnity agreements
Other obligations
Irrevocable loan commitments
* in parentheses: Previous year’s figures
F-3
Consolidated Income Statement of IKB Deutsche Industriebank
Expenses
Interest expenses
Commission expenses
Net expenditure on financial operations
General administrative expenses
a) Personnel expenses
aa) Wages and salaries
€ thousand*
ab) Compulsory social security contributions and expenses
for pensions and other employee benefits
thereof: Pension expenses
15 251
2004/2005
€ thousand
3 353 939
12 171
–
2003/2004
€ thousand
2 359 906
9 480
–
119 527
116 504
30 837
30 302
150 364
74 393
224 757
146 806
65 424
212 230
(14 486)
b) other administrative expenses
Amortisation/depreciation and write-downs
of intangible and tangible fixed assets
23 564
22 982
Amortisation/depreciation of leased assets
316 547
343 324
Rent for leased assets and
other performance-related expenses
19 049
24 996
Other operating expenses
21 796
30 694
203 832
211 741
475
180
Amortisation and write-downs of
receivables and specific securities, as well as
additions to loan loss provisions
Amortisation and write-downs of investments,
interests in affiliated companies,
and investment securities
Addition to reserves for general banking risks
under section 340f of the German Commercial Code (HGB)
50 000
–
Income taxes
60 538
69 329
Other taxes not disclosed under
“other operating expenses”
–1 651
6 420
142 575
4 427 592
104 827
3 396 109
142 575
104 827
–
–
142 575
–5 488
7 913
107 252
–72 175
70 400
–36 852
70 400
Net income
Total expenses
Net income
Minority interest ...
Profits
Losses
Allocation to revenue reserves
to other revenue reserves
Consolidated profit
* in parentheses: Previous year’s figure
F-4
for the Period from 1 April 2004 to 31 March 2005
2004/2005
€ thousand
Income
Interest income from
a) lending and money market operations
b) fixed-income securities and debt register claims
Current income from
a) equities and other non-fixed income securities
b) investments
c) interests in affiliated companies
Income from profit-pooling, profit transfer, and
partial profit transfer agreements
Income from investments in associated companies
Commission income
Net result from financial operations
Income from leasing transactions
Income from the reversal of special tax-allowable reserves
Other operating income
Total income
F-5
2003/2004
€ thousand
3 525 997
269 955
3 795 952
2 505 708
221 620
2 727 328
2 255
6 029
700
8 984
1 024
687
–
1 711
2 842
–
1 713
106 611
950
409 136
–
101 404
313
94 136
3 249
524 229
306
44 837
4 427 592
3 396 109
Balance Sheet of IKB Deutsche Industriebank AG
Assets
Cash reserves
a) Cash on hand
b) Balances with central banks
thereof: with Deutsche Bundesbank
c) Balances in postal giro accounts
€ thousand*
33 135
31 March 2004
€ thousand
42
33 191
76
33 645
51
33 284
105
33 826
1 794 314
6 057 630
7 851 944
20 852 007
1 897 630
6 054 493
7 952 123
21 218 781
–
9 808 355
9 808 355
–
7 658 603
7 658 603
40 661
40 035
9 849 016
7 698 638
(33 574)
Loans and advances to banks
a) payable on demand
b) Other placements, loans and advances
Loans and advances to customers
thereof: Loans to local authorities
31 March 2005
€ thousand
1 556 688 (1 361 019)
Bonds and notes
and other fixed-income securities
a) Bonds and notes
aa) public-sector issuers
ab) other issuers
thereof: securities eligible as collateral
with Deutsche Bundesbank
b) own bonds issued
nominal amount
5 204 662 (4 759 579)
38 890
(37 962)
Equities and other
non-fixed income securities
Investments
thereof: in banks
Interests in affiliated companies
thereof: in banks
Trust assets
thereof: Trustee loans
Tangible fixed assets
Other assets
Deferred items
263
(263)
164 839
(164 839)
3 152
(3 629)
Total assets
* in parentheses: Previous year’s figures
F-6
1 880
11 351
10 666
916
500 414
509 160
3 997
5 041
54 515
474 828
107 341
65 305
399 637
109 573
39 739 892
38 004 351
as at 31 March 2005
Liabilities
Liabilities to banks
a) payable on demand
b) with agreed term or period of notice
€ thousand*
Liabilities to customers
Other liabilities
a) payable on demand
b) with agreed term or period of notice
Securitised liabilities
Bonds issued
Trust liabilities
thereof: Trustee loans
Other liabilities
Deferred items
Provisions
3 152
31 March 2004
€ thousand
1 379 589
12 639 545
14 019 134
893 303
15 871 335
16 764 638
66 954
2 163 859
2 230 813
49 418
2 124 167
2 173 585
18 613 664
3 997
14 722 996
5 041
421 229
103 254
385 053
100 849
124 142
119 044
151 919
65 095
341 156
1 640 428
592 630
98 035
61 772
278 851
1 291 781
562 630
80 000
80 000
225 280
225 280
400 000
567 416
400 000
567 416
2 399
428 092
430 491
70 400
1 693 587
39 739 892
2 399
373 432
375 831
70 400
1 638 927
38 004 351
1 209
5 151 355
5 152 564
1 537
3 992 411
3 993 948
8 951 047
8 332 036
(3 629)
a) provisions for pensions
and similar obligations
b) provisions for taxes
c) other provisions
Subordinated liabilities
Profit-participation certificates (Genussscheinkapital)
thereof: maturing within two years
184 065
Fund for general banking risks
Equity
a) subscribed capital
conditional capital:
22 528
b) silent partnership constributions
c) capital reserves
d) revenue reserves
da) legal reserves
db) other revenue reserves
31 March 2005
€ thousand
(92 033)
(22 528)
e) distributable profit
Total liabilities
Contingent liabilities
a) contingent liabilities from discounted forwarded bills
b) liabilities from guarantees and indemnity agreements
Other obligations
Irrevocable loan commitments
* in parentheses: Previous year’s figures
F-7
Income Statement of IKB Deutsche Industriebank AG
Expenses
Interest expenses
Commission expenses
Net expenditure on financial operations
General administrative expenses
a) Personnel expenses
aa) Wages and salaries
€ thousand*
ab) Compulsory social security contributions and expenses
for pensions and other employee benefits
thereof: Pensions expenses
13 459
2004/2005
€ thousand
3 101 364
8 600
381
2003/2004
€ thousand
2 262 719
6 179
–
91 934
86 232
25 132
24 441
117 066
82 400
199 466
110 673
61 311
171 984
(12 865)
b) other administrative expenses
Amortisation/depreciation and write-downs
of intangible and tangible fixed assets
Other operating expenses
Amortisation and write-downs of receivables and specific
securities, as well as additions to loan loss provisions
Amortisation and write-downs of investments,
interests in affiliated companies,
and investment securities
Income taxes
Other taxes not disclosed under
“other operating expenses”
Net income
Total expenses
Net income
Allocation to revenue reserves
to other revenues reserves
Distributable profit
* in parentheses: Previous year’s figure
F-8
8 434
14 098
18 756
13 681
171 867
185 276
–
31
52 602
61 689
–2 046
1 151
125 060
3 684 484
99 000
2 815 808
125 060
99 000
– 54 660
70 400
– 28 600
70 400
for the Period from 1 April 2004 to 31 March 2005
2004/2005
€ thousand
Income
Interest income from
a) lending and money market operations
b) fixed-income securities and debt register claims
Current income from
a) equities and other non-fixed income securities
b) investments
c) interests in affiliated companies
Income from profit-pooling, profit transfer,
and partial profit transfer agreements
Commission income
Net result from financial operations
Other operating income
Total income
F-9
2003/2004
€ thousand
3 254 023
239 825
3 493 848
2 458 890
203 222
2 662 112
864
39
6 446
7 349
974
40
7 506
8 520
25 179
23 047
114 907
–
43 201
107 347
3 246
11 536
3 684 484
2 815 808
Notes to the single-entity and
consolidated financial statements
Notes to the single-entity and consolidated financial
statements
The consolidated and single-entity financial statements of IKB Deutsche Industriebank AG are prepared in accordance with
the provisions of the German Commercial Code (Handelsgesetzbuch – HGB), in conjunction with the German Accounting
Directive for Banks (Verordnung über die Rechnungslegung der Kreditinstitute – RechKredV) as well as with the relevant
provisions of the German Public Limited Companies Act (Aktiengesetz – AktG). They also comply with the standards
adopted by the German Accounting Standards Board (Deutscher Standardisierungsrat-DSR), and published by the German
Ministry of Justice, pursuant to section 342 (2) of the HGB. In addition, the consolidated financial statements are prepared
in accordance with the European Consolidated Accounts Directive (83/349/EEC) and Bank Accounts Directive (86/635/EEC),
plus transparency requirements laid down by the European Union.
The notes to the financial statements of IKB Deutsche Industriebank AG and the notes to the consolidated financial
statements have been presented together in accordance with section 298 (3) of the HGB.
Group of consolidated companies
In addition to the parent company, 17 German and 6 foreign companies are included in the consolidated financial statements at 31 March 2005. The consolidated companies are listed by name under the list of shareholdings in section A in line
with section 285 No. 11 of the HGB and section 313 (2) of the HGB. In accordance with section 325 of the HGB in conjunction with section 287 of the HGB, we will submit to the Commercial Register a separate list of the participating interests in
44 companies held via other subsidiaries. Partnerships eligible for exemption in accordance with section 264 b of the HGB
are listed separately in this list.
During the financial year under review, a 50 % stake in IKB Immobilien Leasing GmbH was sold to Kreditanstalt für Wiederaufbau (“KfW”), Frankfurt/Main. We therefore deconsolidated IKB Immobilien Leasing Group, comprising IKB Immobilien
Leasing GmbH plus 351 special purpose entities and general partnerships. This joint venture is now carried and valued at
equity, as an associated enterprise. The company is included in the list of investments under Point B.
These deconsolidations have the following major effects on the consolidated balance sheet and income statement:
F-10
On the assets side, leased assets fell by € 1,409 million, and unpaid contributions by minority shareholders by € 27 million.
On the other hand, loans and advances to customers increased by € 841 million. On the equity and liabilities side, liabilities
to banks have fell by € 425 million, other liabilities were down € 76 million, and deferred income was down € 113 million.
Minority interest was reduced by € 2 million, with only € 0.1 million remaining; this residual amount is attributable to
minority shareholders in IKB Immobilien Management GmbH (IMG).
Given the IKB Group’s policy of amortising assets and liabilities of IKB Immobilien Leasing Group, the deconsolidation resulted in € 39 million income. This amount, which is reported under other operating income, reverses start-up losses incurred in
previous years, as part of the typical expenditure and earnings pattern in the leasing business.
Moreover, Group reserves increased by € 28 million (also refer to the Statement of Changes in Consolidated Equity), reflecting the diminution of revenue reserves at the time of first-time consolidation.
IMG, which IKB had previously held indirectly, as a subsidiary of IKB Immobilien Leasing GmbH, remains within the group of
consolidated companies. IMG’s activities are focused on real estate development, support and development for construction
projects, and the surveying of properties. The previous direct stake of 9.7 % was increased to 75 % concurrently with the
disposal of a stake in IKB Immobilien Leasing GmbH, which continues to hold the remaining 25 % in IMG.
Pursuant to section 296 (2) of the HGB, we have not included the other affiliated companies (list of investments under “C.”)
in the consolidated financial statements due to their minor importance for the presentation of the group’s financial position
and results of operations.
As a rule the financial statements of consolidated companies are prepared on the parent company’s balance sheet date. In
the case of IKB Capital Corporation, we arranged for the preparation of interim financial statements at 31 March 2005 in
accordance with section 299 (3) of the HGB.
A different treatment was applied to the following companies, which were consolidated on the basis of their financial statements as at 31 December 2004:
•
•
•
•
•
•
•
•
AIVG Allgemeine Verwaltungsgesellschaft mbH;
IKB CorporateLab S.A.1;
IKB Facility-Management GmbH;
IKB FINANCIERE FRANCE S.A.;
IKB Grundstücks GmbH and its special purpose entities;
IKB Immobilien Leasing GmbH1;
IKB Immobilien Management GmbH; and
IKB Private Equity GmbH and its subsidiaries.
1) Associated
enterprise
F-11
Principles of consolidation
The consolidated financial statements were prepared in strict accordance with IKB Deutsche Industriebank AG’s accounting
and valuation methods detailed in the following section. The financial statements of the companies included were – if
necessary – adapted to conform with the accounting and valuation regulations of the parent company. US subsidiaries
prepare their accounts according to US GAAP. As far as materially necessary we adapted the subsidiaries’ financial statements to HGB regulations by way of reconciliation.
Capital was consolidated at book value. For fully consolidated companies, the acquisition costs are offset against the equity
on the date of acquisition or initial consolidation. There is goodwill totalling € 3.6 million and negative goodwill (badwill)
totalling € 5.3 million. The balance of € 1.7 million was offset against revenue reserves.
The receivables and liabilities as well as income and expenses between consolidated companies are offset.
Accounting policies
Loans and advances
Loans and advances to banks and customers are disclosed at their nominal value, less specific and general loan loss provisions. Differences between repayment amounts and nominal values are included in deferred income reversed on schedule.
We have formed a general loan loss provision to cover expected loan losses which have been incurred but not identified as
such at the balance sheet date. We calculated the general loan loss provision based on our past experience and weightings.
Securities
Securities are disclosed under the heading “Bonds, notes and other fixed-income securities”, as well as “Equities and other
non-fixed income securities”, are valued at the lower of cost or market as applies to current assets, i.e. at their costs of
purchase or the lower market price. Pursuant to section 280 of the HGB, we were obliged to write up the value of securities
that had been written down in previous years to their current market value (2004/05: € 1.6 million), to a maximum amount
of their historical costs of purchase. We also reduced the amounts recognised pursuant to section 340f of the HGB by € 50
million.
Individual securities holdings, together with allocated interest rate hedges (interest rate swaps) form a valuation unit (micro
hedge) under the provisions applicable to valuation. In these cases, as a result of the interest rate hedges, it is permitted to
waive securities write-downs if these are based on changes in market interest rates; if the issuer’s credit quality is sustainably impaired, partial write-downs are made.
Long-term investment securities exclusively comprise issues from international industrial companies (corporate bonds and
credit-linked notes), which we purchased intending to hold them up to the final maturity.
F-12
Investments in associates/tangible assets
Interests in affiliated companies and enterprises with a participatory interest, as well as in associated enterprises, are carried
at amortised cost.
Given start-up losses which are typical for the structure of the leasing business, IKB Immobilien Leasing Group reports
negative equity which, pursuant to section 312 of the HGB in conjunction with GAS 8.27, must not be recognised when
accounting at equity. We therefore valued our consolidated interest held in IKB Immobilien Leasing Group at € nil, carrying
the group’s equity forward in an auxiliary ledger.
Tangible assets and leased items are valued at their costs of purchase or historical cost, less scheduled depreciation. In the
case of sustained impairment, the assets are subject to unscheduled write-downs. Low-value assets are written off in full
during their year of purchase.
Leased assets are depreciated in line with the contractual agreements for the leasing transactions.
Liabilities
Liabilities are carried at their repayment amount. Any difference between the repayment amount and the amount received
is carried as prepaid expenses and reversed according to schedule.
Provisions
Provisions for pensions and similar obligations are carried as a liability in accordance with actuarial principles, based on
Heubeck’s mortality tables and a 6 % rate of interest, and using the cost (German Teilwert) method for pension expectancies
and the net present value of current pensions.
We form provisions for taxes and uncertain liabilities in the amount in which these are likely to be incurred. We have
discounted provisions for anniversary bonus commitments – to the extent needed – in accordance with the tax regulations
at 5.5 %.
Derivatives transactions
Derivative transactions (swaps, futures/forwards, options) are pending items and are not subject to a compulsory disclosure
requirement on the balance sheet. They are allocated to the banking or trading book when they are concluded, in line with
their purpose. To the extent that derivative financial transactions are to be allocated to the trading book, these are valued in
line with the principle of imparity and realisation based on their current market values. In order to hedge and manage interest rate and market risks for the banking book, together with financial transactions recognised on the balance sheet, derivative financial transactions implemented are subject to uniform control and evaluation of the risk of interest rate changes.
Changes to the market value of these transactions are thus not subject to monitoring on an individual basis.
F-13
Currency translation
On and off-balance sheet transactions denominated in foreign currency are translated in accordance with the principles of
section 340h of the HGB. Fixed assets denominated in foreign currency that are not specifically hedged have been translated at their historic exchange rates at the time of their acquisition.
All other assets, liabilities and other outstanding spot transactions denominated in foreign currency are valued at the reference rate of the European Central Bank (ECB) on the balance sheet date. If foreign exchange forwards are concluded to hedge
interest-bearing items on the balance sheet, premiums and discounts on the spot rate are offset against the net interest
income on a pro-rata basis. Hedged income or expenses are translated at the contracted forward rate. Since the implementation of Head Office applications in foreign branch offices, interest income and expenditure denominated in foreign currency have been reported on a gross basis as from the 2004/05 financial year.
In the income statement only expenses from currency translation according to section 340h (2) of the HGB are taken into
account.
F-14
Notes on the balance sheet and income statement
Maturities of selected balance sheet items by residual terms
IKB Group
€ million
IKB AG
31 Mar 2005
604
31 Mar 2004
168
31 Mar 2005
6 058
31 Mar 2004
6 054
267
278
48
11
24 354
45
28
76
19
24 116
3 472
2 269
119
198
20 852
3 963
1 816
145
130
21 219
3 687
2 627
11 564
6 476
3 969
2 950
11 028
6 169
3 293
2 395
9 788
5 376
3 231
2 560
9 753
5 675
10 664
14 123
12 640
15 871
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
2 857
1 477
3 824
2 506
5 110
1 893
3 813
3 307
2 974
3 343
3 817
2 506
5 536
3 647
3 733
2 955
Other liabilities to customers
with agreed term or period of notice
1 912
2 176
2 164
2 124
129
291
589
903
188
131
866
991
93
298
870
903
219
96
830
979
Other loans and advances to banks
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
Loans and advances to customers
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
Liabilities to banks
with agreed term or period of notice
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
Of the bonds, notes and other fixed-income securities, € 979 million (2003/2004: € 972 million) in the Group and € 962
million (2003/2004: € 967 million) in IKB Deutsche Industriebank AG will mature in the next financial year. Of the bonds
issued carried on the balance sheet under securitised liabilities, € 3.8 billion (2003/2004: € 4.6 billion) are due next year for
the Group and for IKB Deutsche Industriebank AG.
F-15
Treasury shares
The General Meetings held on 5 September 2003 and 9 September 2004 authorised the bank to acquire its own shares for
the purpose of securities trading.
During the 2004/2005 financial year, we purchased a total of 5,214,309 treasury shares at an average price of € 19.36 and
sold the same quantity at an average price of € 19.47 per unit share. The net gains from these transactions totaling
€ 558 thousand are included in the net result from financial operations. The largest amount of treasury shares held on any
one day totalled 1.82 % of the share capital with a maximum threshold of 5 %. Our affiliated companies did not engage in
the sale or purchase of IKB shares. As at the balance sheet date no treasury shares were held by the bank.
In order to allow our employees to purchase employee shares, we purchased 16,642 unit shares at an average price of
€ 18.95. 12,019 unit shares were resold to employees of IKB Deutsche Industriebank AG at a preferred price of € 9.57. This
preferred price was equivalent to 50 % of the prevailing market price on the award date. A further 4,623 shares were
acquired at the same conditions by employees of the Group. The resulting charges in the group totalled € 156 thousand (IKB
Deutsche Industriebank AG: € 113 thousand) and are included in personnel expenses.
Statement of changes in fixed assets
IKB Group
€ million
Intangible assets
Tangible assets
Investments
Cost of purchase/
historical
costs
Additions
Disposals
Depreciation and Depreciation and Net book values Net book values
amortisation
amortisation
31 March 2005 31 March 2004
accumulated
financial year
2.4
406.9
42.0
1.0
19.5
1.7
–
14.1
2.2
0.7
160.8
1.9
0.6
23.0
–
2.7
251.5
39.6
2.3
262.4
40.1
Investments in
associated companies
5.3
1.7
–
–
–
7.0
5.3
Interests in affiliated
companies
32.5
15.1
16.1
–
–
31.5
32.5
3 082.2
2 309.5
531.7
2 109.7
2 140.3
426.8
547.1
0.6
316.5
0.5
926.5
3 991.8
2 230.7
2 309.5
Leased assets
Equities and fixed-income securities
IKB Deutsche Industriebank AG
€ million
Tangible assets
Investments
Interests in affiliated
companies
Equities and fixed-income securities
Cost of purchase/
historical
costs
131.6
2.3
Additions
10.1
9.8
Disposals
Depreciation and Depreciation and Net book values Net book values
amortisation
amortisation
31 March 2005 31 March 2004
accumulated
financial year
26.0
–
61.2
1.4
8.4
–
54.5
10.7
65.3
0.9
568.3
10.7
19.5
59.1
–
500.4
509.2
2 276.7
2 104.8
398.9
–
–
3 982.6
2 276.7
F-16
Given start-up losses which are typical for the structure of the leasing business, IKB Immobilien Leasing Group reports
negative equity which, pursuant to GAS 8.27, must not be recognised when accounting at equity. We therefore valued our
consolidated interest held in IKB Immobilien Leasing Group at € nil.
Tangible fixed assets include bonds, notes and other fixed-income securities, plus equities of € 4.0 billion (2003/2004:
€ 2.3 billion), both for the Group and IKB Deutsche Industriebank AG. These are mostly issues by international industrial
companies (corporate bonds and credit-linked notes) which we have acquired as part of our credit business. As we intend to
hold these until maturity, we treat these holdings in line with loans. At the balance sheet date, there were net hidden
reserves on these securities holdings.
On 31 March 2005, the book value of the Group’s land and buildings used by the bank amounted to € 194.7 million, and
those of IKB Deutsche Industriebank AG to € 18.1 million. The principal item in the Group was the headquarters building in
Dusseldorf.
Operating and office equipment is included under the fixed assets item, and totals € 34.9 million for the Group and € 20.5
million for IKB Deutsche Industriebank AG.
Securities negotiable at a stock exchange
The negotiable securities contained in the following balance sheet items listed below are differentiated as follows:
IKB Group
€ million
Total
listed
10 517.4
10 444.2
Equities and other
non-fixed income securities
12.3
Investments
Interests in affiliated companies
36.8
–
Bonds, notes and other
fixed-income securities
IKB AG
not
listed
not
listed
Total
listed
73.2
9 849.0
9 786.8
62.2
12.3
–
0.2
0.2
–
36.8
–
–
–
–
151.9
–
–
–
151.9
Loans and advances, and liabilities to affiliated companies and investments
IKB Group
Affiliated
companies
–
137.4
0.2
0.8
€ million
Loans and advances to banks
Loans and advances to customers
Liabilities to banks
Liabilities to customers
F-17
Investments
9.1
37.0
5 465.6
17.5
IKB AG
Affiliated
companies
6 508.9
1 200.6
2 163.4
306.6
Investments
8.4
37.0
5 450.7
–
Trustee business
IKB Group
€ million
Loans and advances to customers
Investments
Trust assets
31 Mar 2005
3.2
0.8
4.0
4.0
4.0
Liabilities to customers
Trust liabilities
IKB AG
31 Mar 2004
3.6
1.4
5.0
5.0
5.0
31 Mar 2005
3.2
0.8
4.0
31 Mar 2004
3.6
1.4
5.0
4.0
4.0
5.0
5.0
Subordinated assets
Subordinated assets are included in the following balance sheet asset items:
€ million
Loans and advances to banks
Loans and advances to customers
Equities and other non-fixed income securities
Interests in affiliated companies
IKB Group
–
175.5
9.2
–
IKB AG
100.0
17.4
–
71.6
Foreign currency assets and liabilities
The following table shows currency amounts translated into euros. The differences between assets and liabilities are mostly covered by currency hedging transactions.
IKB Group
€ million
Assets
Liabilities
31 Mar 2005
4 232
4 632
31 Mar 2004
4 680
2 804
IKB AG
31 Mar 2005
4 288
4 247
31 Mar 2004
4 745
3 156
Other assets and other liabilities
For both the Group and IKB Deutsche Industriebank AG, the largest single item in Other assets constitutes proportionate
interest from interest rate swaps and cross-currency-swaps totalling € 404 million in the Group and € 384 million in the
single-entity financial statements. In addition, this item is also used to disclose the equity interests held by IKB Private
Equity GmbH (Group: € 127 million). Tax refund claims were recognised in the amount of € 40 million for the Group, and
€ 28 million for IKB Deutsche Industriebank AG. The remaining amount disclosed on both the consolidated and singleentity balance sheets under this item mostly relates to payment receivables and trade accounts receivable.
F-18
In both the consolidated and single-entity financial statements, the amounts distributed on profit-participation certificates
(Genussscheine) for 2004/2005 (€ 38 million) and the pro rata interest for subordinated liabilities and silent partnership
contributions (consolidated: € 62 million; single-entity: € 64 million) are carried under Other liabilities. At € 276 million
(Group) and € 233 million (IKB Deutsche Industriebank AG), pro rata interest on interest rate swaps accounted for the largest
single item of Other liabilities. The remaining amount disclosed on both the consolidated and single-entity balance sheets
under this item mostly relates to trade liabilities.
Deferred items
Consolidated prepaid expenses include € 80 million (single-entity: € 77 million) in differences pursuant to section 250 (3)
of the HGB and section 340e (2) sentence 3 of the HGB (discounts from liabilities carried at their nominal value).
Consolidated deferred income include € 58 million (single-entity: € 55 million) in differences pursuant to section 250 (2) of
the HGB and section 340e (2) sentence 2 of the HGB (discounts from loans and advances carried at their nominal value).
Subordinated liabilities
Subordinated liabilities are eligible as equity within the meaning of the German Banking Act (Kreditwesengesetz – KWG) and
thus qualify as liable capital. There is no early repayment commitment. In the event of bankruptcy proceedings or
liquidation, they may not be redeemed until all unsubordinated creditors have been satisfied.
Subordinated liabilities total € 1.2 billion in the consolidated statements and € 1.6 billion in the single-entity statements.
Interest expenses during the financial year in this regard totalled € 58.9 million in the consolidated statements (2003/2004:
€ 50.6 million) and € 83.1 million in the single entity statements (2003/2004: € 61.4 million).
Individual items which exceed 10 % of the total amount:
Year of issue
2004/2005
2003/2004
Book value
€ million
400.0
300.0
F-19
Issue
currency
€
€
Interest rate
%
6.41
4.50
Due date for
redemption
29.07.2033
09.07.2013
Profit-participation certificates
Profit-participation certificates totalling € 592.6 million meet the requirements set out in section 10 (5) of the KWG in the
amount of € 406.2 million and thus qualify for inclusion in the bank’s liable capital. The total amount of these certificates
may be used to cover losses. Interest payments are made solely on the basis of any net retained profits. The redemption
rights of the profit-participation certificate holders are subordinated to the entitlements of other creditors.
The profit-participation certificates are broken down as follows:
Year of issue
1993/94
1994/95
1995/96
1997/98
1999/00
2001/02
2001/02
2004/05
Book value
€ million
92.0
92.0
81.8
102.3
20.0
100.0
74.5
30.0
592.6
Issue
currency
DM
DM
DM
DM
€
€
€
€
Interest rate
%
7.30
6.45
8.40
7.05
7.23
6.50
6.55
4.50
Due date for
redemption
31.03.2005
31.03.2006
31.03.2007
31.03.2009
31.03.2010
31.03.2012
31.03.2012
31.03.2015
Interest payments for the profit-participation certificates for the 2004/2005 financial year were incurred in the amount of
€ 39.7 million (2003/2004: € 41.2 million). This is carried under interest expenses.
The Board of Managing Directors is authorised to issue profit-participation certificates – also with embedded conversion or
option rights – on one or several occasions until 30 August 2007 with a total nominal amount of up to € 300 million and
with a maximum maturity of 15 years. This authority was exercised during the 2004/2005 financial year, with a € 30
million issue. Conversion and option rights can be granted to the bearers of these profit-participation certificates with an
interest in the share capital of up to € 22.5 million. No use has been made of this authorisation to date.
Changes in capitalisation
Shareholders’ equity
Subscribed share capital amounted to € 225,280,000.00 on the balance sheet date and comprises 88,000,000 notional
no-par value bearer shares (“bearer unit shares”).
There is conditional capital totalling € 22.5 million to grant conversion or option rights to the bearers of convertible bonds
and bonds with warrants, with an aggregate nominal value of € 300 million to be issued by 8 September 2009. Furthermore,
authorised capital totalling € 76.8 million was authorised. This authorisation is limited to 30 August 2007.
None of these authorisations has been exercised to date.
F-20
Hybrid capital
At 31 March 2005, hybrid tier 1 capital in the Group amounted to € 1,045 million (2003/2004: € 820 million) and to € 400
million in IKB Deutsche Industriebank AG (2003/2004: € 400 million). This capital complies with the requirements of section
10 (4) of the KWG and is therefore attributed to our tier 1 capital for regulatory purposes.
Hybrid capital instruments comprise issues in the form of silent participations or preferred securities, the latter being issued
by two US subsidiaries formed exclusively for this purpose. In contrast to preferred shares pursuant to German company law,
the preferred securities under US law do not grant any share in the liquidation proceeds of the issuing entities. In contrast
to tier 2 capital these instruments are subject to stricter maturity requirements. In the case of silent participations –
basically issued as perpetuals – only the issuer is allowed to terminate the contract after 10 years at the earliest; in the case
of preferred securities an unlimited maturity for the investor is agreed.
Moreover, in the case of insolvency hybrid capital instruments are subordinated to all subordinated liabilities and profitparticipation certificate issues.
Interest expenses for hybrid capital amounted to € 52 million (2003/2004: € 40 million) in the consolidated statements and
€ 30 million in the single-entity statement (2003/2004: € 17 million).
Consolidated net retained profit
Consolidated net retained profit is disclosed in the consolidated financial statements in the amount of the total dividends
intended for disbursement. The additions made to revenue reserves in the financial statements of the companies included
in consolidation will not be included in the appropriation of profits in the consolidated income statement. The addition to
the consolidated reserves results from the consolidated net income less or plus the profits or losses due to minority interests and less the intended total dividend distribution.
Changes in consolidated equity
€ million
Parent company
Share capital
Hybrid capital
Silent partnership contributions
Preferred shares
Capital reserves
Consolidated equity generated
Legal reserves
Other revenue reserves
Consolidated profit
Accumulated other consolidated earnings
Equity
Minority shareholders
Equity
Consolidated equity
Balance
as at
31 Mar 2004
225.3
820.0
570.0
250.0
567.4
421.6
2.4
348.8
70.4
0.0
2 034.3
–2.4
2 031.9
F-21
Issue/
return
of
interests
Changes to
Dividends the group of
paid
consolidated
companies
Other changes
Balance
other
as at
Net
consolidated
31 Mar 2005
income
earnings
225.0
–70.4
27.9
142.6
0.0
225.3
1 045.0
570.0
475.0
567.4
521.7
2.4
448.9
70.4
0.0
2 359.4
0.0
225.0
0.0
–70.4
2.5
30.4
0.0
142.6
0.0
0.0
0.1
2 359.5
225.0
0.0
0.0
0.0
0.0
–70.4
27.9
142.6
0.0
27.9
72.2
70.4
225.0
0.0
–70.4
Statement of changes in IKB Deutsche Industriebank AG’s equity
€ million
Balance at 1 April of previous year
Disbursement of distributable profit from previous year
Appropriation to other revenue reserves from net income
Addition to hybrid capital
Distributable profit as at 31 March
Balance at 31 March
2005
1 638.9
–70.4
54.7
0.0
70.4
1 693.6
2004
1 407.7
–67.8
28.6
200.0
70.4
1 638.9
Regulatory indicators
The risk-weighted assets (in € million), as well as capital ratios in the Group (including the capital ratio according to the
German Banking Act), are broken down as follows on the balance sheet date:
Attributable amounts in %
Balance-sheet transactions
Off-balance sheet transactions
100
24 567
2 354
50
26 921
Derivative transactions in the
banking book
Total risk-weighted assets
2
981
20
305
4
78
212
1 061
521
Amount attributable for
market risk
Aggregate items for mandatory
inclusion
Liable capital 1)
Capital elegible for inclusion 1)
Tier 1 capital ratio (in %)
Capital ratio (in %)
1)
After adaption of the annual financial statements
F-22
10
500
500
31 Mar 2005
Total
€ million
25 374
3 339
31 Mar 2004
Total
€ million
23 138
2 698
290
479
29 003
26 315
325
313
29 328
26 628
3 828
3 828
8.0
13.1
3 411
3 411
7.4
12.8
Contingent liabilities and other commitments
Contingent liabilities (31 March 2005)
€ million
Guarantees, indemnity agreements, other
Assumptions of liability
Total
IKB Group
2 278
209
2 487
IKB AG
4 944
209
5 153
Other commitments (31 March 2005)
€ million
Loan commitments up to one year
Loan commitments more than one year
Total
IKB Group
7 797
1 502
9 299
IKB AG
7 756
1 195
8 951
At the balance sheet date our Contingent liabilities also comprise credit default swaps (where IKB has assumed the position
of protection seller) within the item Guarantees and indemnity agreements amounting to € 1.3 billion (2003/2004: € 1.1
billion). As seller of protection we have assumed the risk of counterparty default for certain credit portfolios, given the
occurrence of pre-defined credit events. More than two-thirds of the individual portfolios are rated in the best rating
classes Aaa to A by the independent external rating agency Moody’s.
The item Other commitments comprises 19 loan commitments to special entities for a total of € 7.0 billion, which only take
effect in the case of short-term liquidity bottlenecks.
Notes to the cash flow statement
The cash flow statement complies with the accounting requirements of the German Accounting Standards Committee (as
defined in GAS 2-10) and shows the balance as well as the changes of the Group’s cash and cash equivalents.
Changes to the cash and cash equivalents are broken down in line with their cause into operating activities, investment
activities, and financing activities. The cash flow from investment activities primarily comprises revenues from the sale and
payments for the purchase of financial assets and tangible fixed assets. The cash flow from financing activities includes all
cash flows from transactions relating to equity and hybrid capital instruments as well as subordinated equity and profitparticipation certificates. In accordance with international practice for banks, all other cash flows are assigned to operating
activities.
The balance of cash and cash equivalents corresponds to the balance sheet item Cash reserve, and primarily contains
balances held with central banks and cash in hand.
F-23
Cash flow statement
€ million
Consolidated net income for the year
2004/2005
2003/2004
143
105
Non-cash items in net income and reconciliation to the cash flow
from operating activities
Direct write-downs, additions to/reversal of loan loss provisions,
additions to/reversal of provisions for lending business
296
293
Depreciation/amortisation of tangible fixed assets, leased assets and financial assets
Minority interest income/losses on balance
340
–
366
2
Changes in other non-cash items
(mostly changes in provisions and in the result from securities)
115
34
Earnings from the disposal of financial assets and tangible fixed assets
–24
–
–799
–809
71
–9
–148
379
–2 309
63
–239
293
–532
–344
954
495
–2 290
–50
–466
172
–638
62
–2 680
–238
4 180
221
4 034
–3 373
–30
–413
–872
216
1 034
–167
3 188
–2 385
–108
–398
22
3
–
1
–17
–20
–
116
104
–70
–33
–43
–
3
–72
–68
Changes in funds from other financing activities on balance
(revenue reserves, minority interest etc.)
378
545
Cash flow from financing activities
308
477
34
–413
104
308
33
27
–398
–72
477
34
Other adjustments (predominantly reclassification of interest paid and received
incl. earnings from leasing transactions and income taxes paid)
Subtotal
Changes in assets and liabilities from operating
activities after adjustment for non-cash items
Loans and advances
to banks
to customers
Bonds, notes and other fixed-income securities
Equities and other non-fixed income securities
Leased assets
Proceeds from sale
Payments for acquisition
Other assets from operating activities
Liabilities
to banks
to customers
Securitised liabilities
Other liabilities from operating activities
Received interest and dividends
Interest paid
Income tax payments
Cash flow from operating activities
Proceeds from the sale of
financial assets
tangible assets
Payments for the acquisition of
financial assets
tangible assets
Impact of the sale of associated companies
Impact of changes to the group of consolidated companies
Cash flow from investing activities
Dividends paid
Cash and cash equivalents at end of previous period
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at the end of period
F-24
Other information
Other financial commitments
On the balance sheet date, funding commitments from shares, interests in German limited liability companies (GmbHs),
and interests in associated companies which have not been fully paid up, as well as shares held by IKB Private Equity and the
subordinate loans totalled € 43 million in the consolidated statements, and € 1,3 thousand for IKB Deutsche Industriebank AG.
The bank has a pro rata additional funding obligation to Liquiditäts-Konsortialbank GmbH, Frankfurt/Main, Germany.
In addition, we bear a proportional contingent liability for fulfilling the funding obligations of other partners in the
Association of German Banks (Bundesverband deutscher Banken e.V.). In addition, pursuant to section 5 (10) of the Statutes
for the Joint Fund for Securing Customer Deposits (Statut für den Einlagensicherungsfonds), the bank has committed itself to
indemnify the Association of German Banks from any losses arising due to measures in favour of banks in which it owns a
majority interest.
IKB Leasing GmbH, Hamburg, has commitments from sale and leaseback transactions totalling € 33 million. The commitments are offset with corresponding claims against lessees.
Letters of comfort
In accordance with sections 285 No. 11 and 313 (2) of the HGB, IKB ensures, excluding political risk, that entities carried in
the list of investments of IKB Deutsche Industriebank AG and marked as being covered by the letter of comfort, will be able
to meet their contractual liabilities.
IKB Leasing GmbH, Hamburg, has issued letters of comfort to Commerzbank Rt., Budapest, on behalf of the subsidiaries IKB
Finanz Leasing AG, Budapest, and IKB Leasing Hungaria GmbH, Budapest. In addition there are letters of comfort for IKB
Leasing CR, Prague, and IKB Leasing Polska GmbH, Poznan, as collateral for credit lines with Commerzbank AG, Prague
branch, and with Bre Bank Spolka Akcyjna, Warsaw. These letters of comfort are each limited to a specified amount.
Since IKB Immobilien Leasing GmbH is no longer wholly-owned by IKB Deutsche Industriebank AG, IKB’s letter of comfort is
no longer applicable.
Collateral for own liabilities
The Group and IKB Deutsche Industriebank AG have assigned assets and pledged collateral totalling € 5,631 million for the
liabilities listed below.
€ million
Liabilities to banks
Liabilities to customers
Total
5 603
28
5 631
F-25
We provide collateral above all for loans issued by Kreditanstalt für Wiederaufbau and other development banks. These institutes have linked the issue of loans to the provision of collateral.
Assets pledged as collateral for own liabilities
(Information as defined in section 35 (5) of the RechKredV)
Fixed-income securities totalling € 5.1 billion have been pledged with Deutsche Bundesbank as collateral for the European
Central Bank’s repurchase agreement process (collateral pool). On the balance sheet date, credit facilities totalling € 2.2 billion had been drawn upon.
We have provided cash collateral with the following banks in connection with credit derivative transactions:
• JP Morgan Chase Bank, London
• Wachovia Bank N.A., Charlotte/California
€ 290 million
€ 250 million
We have pledged the following cash collateral for interest-rate derivatives as part of collateral management:
•
•
•
•
•
•
•
•
Citibank N.A., New York
€ 45 million
Credit Suisse First Boston Int’l., London
€ 49 million
Dresdner Bank AG, Frankfurt
€ 43 million
Hypo- und Vereinsbank AG, Munich
€ 21 million
JP Morgan Chase Bank N.A., New York
€ 34 million
Royal Bank of Scotland, Edinburgh
€ 16 million
UBS Ltd., London
€ 13 million
WestLB AG, Dusseldorf
€ 48 million.
Securities with a market value of € 3.5 million have been pledged with Clearstream Banking AG, Frankfurt to uphold payment commitments for securities transactions. As part of futures trading at Eurex Deutschland, securities with a nominal
value of € 5 million have been pledged with BHF-BANK AG, Frankfurt, to cover margin requirements. A security with a
market value of € 6.9 million has been deposited as collateral with Clearstream Banking, Luxembourg, for securities trading
in Luxembourg.
In addition, securities with a nominal value of USD 67 million were pledged with WestLB AG, London branch, as collateral
within the scope of an issue.
Forward transactions/market value of derivatives/interest rate risks
The IKB Group and IKB Deutsche Industriebank AG engage in forward transactions (swaps, forward rate agreements,
and futures), these are predominantly used to hedge interest rate risks. Trading in these instruments is limited. The bank’s
interest rate risk exposure is restricted by a limit system adopted by the Board of Managing Directors, and is constantly
F-26
monitored by our Risk Management unit. In addition, counterparty limits apply to the volume of forward and derivative
transactions.
Interest rate risks predominantly relate to the loan refinancing portfolio, the liquidity reserve, and investments of the bank’s
equity.
The loan refinancing portfolio is used to manage interest rate risk exposure on loans granted, and on the corresponding
refinancing. For this purpose, the (predominantly) long-term loans are largely refinanced on a matched-maturity basis.
Derivatives are used to neutralise or reduce maturity mismatches, and interest rate or currency risks.
The liquidity reserve and equity investments largely comprises liquid securities, most of which are eligible as collateral for
transactions with ECB (such as repo tenders). The portfolio comprises almost exclusively floating-rate notes, which offer
price stability due to regular coupon resets. Derivatives are used to optimise the interest return on these FRNs, with the
objective of achieving maximum stability in the interest income on own funds invested.
Market values of derivatives
€ million
1. Interest-based transactions/loan derivatives
OTC products
Forward rate agreements
Swaps (same currency)
Interest rate options
(Caps, Collars, Floors, Swaptions)
Forward bonds
2. Currency-based transactions
OTC products
Foreign exchange forwards
Cross-currency swaps
Currency options
3. Equity/index-based transactions
Exchange-traded products
Equity options
Total
IKB AG
Nominal
amount
IKB Group
Positive
Negative
market value market value
100
24 186
0
576
0
679
652
0
73
146
2
0
978
3 489
95
2
68
0
1
122
1
0
29 646
1
649
0
876
Nominal
amount
100
27 005
Positive
Negative
market value market value
0
568
0
819
814
0
73
216
2
0
1 132
3 535
95
6
70
0
3
126
1
0
32 897
1
647
0
1 022
Negative market values are incurred on interest rate derivatives in the loan refinancing portfolio where the bank is a net
interest payer, and the market level of interest rates has fallen between the trade date and the balance sheet date (as the
bank would otherwise have been able to enter into a similar transaction on the balance sheet date, at more favourable
terms). Negative market values in the bank’s own investments are incurred in a similar way, however, these derivatives are
used to hedge interest income rather than expenditure. As explained above, these derivatives are generally used to manage
interest rate risks. Expenditure incurred on the derivatives are balanced by income from loans and fixed-income securities,
in a similar amount. Hence, negative market values of derivatives are offset by positive valuation results on fixed-rate loans
and fixed-income securities, in approximately the same amount. Given the bank’s intention to hold the derivatives until
maturity, such negative market values are not recognised in income.
F-27
Positive or negative market values are calculated on the basis of stock exchange prices. Where no stock exchange prices are
available, fair values are determined using the discounted cash flow method, based on a comparison with similar market
transactions, or using other valuation models. The discounted cash flow method is based on estimated future cash flows and
corresponding discount rates. The valuation models include parameters such as yield curve data, time values and volatility
factors. Reported market values are inclusive of accrued interest to be amortised (Group: € 120 million / IKB Deutsche
Industriebank AG: € 153 million), in line with market practice.
Segment reporting
Segment reporting is based on the internal divisional accounting system, which is focused on financial control, and forms
part of IKB’s management information system. This approach corresponds to the recommendations for banks of the German
Accounting Standards Committee (Deutsches Rechnungslegungs Standards Committee e.V. – DRSC).
Segment reporting is geared towards the bank’s divisions. These divisions operate on the market as independent units.
Segment information is presented to show the divisions as independent enterprises responsible for their own earnings and
costs, and with their own capital resources. The operating divisions are:
•
•
•
•
•
•
Corporate Lending (CL);
Real Estate Finance (REF);
Structured Finance (SF);
Private Equity (PE);
Leasing; and
Segment Report
Securitisation.
The Leasing segment comprises the activities of our equipment
leasing subsidiaries (IKB Leasing GmbH, IKB Leasing Berlin GmbH,
and IKB Autoleasing GmbH). In the previous financial year, the
Leasing segment comprised the business activities of IKB Immobilien Leasing. Following the disposal of a 50 % stake, these were
no longer included.
Results shown for the Securitisation segment comprise the
earnings resulting from the bank’s activities in the fields of
investments in international loan portfolios, advisory services to
special investment funds and the securitisation and outplace-
in € million
Net interest income
Net commission income
Net interest and commission income
Administrative expenses
Personnel expenses
Other administrative
expenses
Other operating income/expenses*)
Risk provisioning balance
Addition to reserves for general
banking risks (section 340f HGB)
Result from ordinary activities
Ø Allocated tier 1 capital
Loan volume at 31 March**)
Cost/income ratio in %
Return on equity in %
Ø Number of staff
New business volume
ment of credit risks.
F-28
The figures of the Private Equity Division correspond with the disclosure under commercial law of the sub-group IKB Private
Equity. Income and expenses are assigned to the other divisions in accordance with their respective responsibility. Net
interest income from lending is calculated using the market interest method; it also comprises the investment income from
economic capital. This investment income is allocated to the respective divisions in line with the average risk assets (in line
with the capital ratio in accordance with the KWG). In doing so a 4.8 % tier 1 capital ratio based on the risk-weighted assets
is allocated to the divisions. The disclosure of the average allocated negative tier 1 capital in the Securitisation segment
results from capital relief caused by CLO transactions including the offsetting against tier 1 capital used for investments in
international loan portfolios. Whenever they could be assigned to the divisions responsible, head office personnel and
material costs were allocated to the divisions. Project costs are allocated to the divisions to the extent that the projects were
directly attributable to them.
The allocation of loan exposure risk costs to the divisions is in line with standard risk costs methodology. The risk costs of
the head office result from the difference between the standard risk costs calculated for the segments and net loan loss
provisions as reported in the consolidated income statement.
Each segment’s earnings are shown using the result from ordinary activities for the individual division. In addition, we
measure the results recorded by the divisions using their return on equity and cost/income ratio. The return on equity is the
ratio of the result from ordinary activities to the average assigned tier 1 capital. The cost/income ratio is the ratio of administrative expenses to income.
by Divisions 2004/2005
Corporate
Lending
Real Estate
Finance
Structured
Finance
Private
Equity
Head Office/
Securitisation Consolidation
Leasing
Total
1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 –
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
231.0
230.5
86.4
84.0
101.7
99.3
8.9
10.1
37.4
44.6
41.9
29.3
21.8
27.6
529.1
10.6
6.4
8.7
9.3
15.6
15.5
–0.4
–0.3
–1.2
–4.7
62.7
58.4
–1.6
0.1
94.4
84.7
241.6
236.9
95.1
93.3
117.3
114.8
8.5
9.8
36.2
39.9
104.6
87.7
20.2
27.7
623.5
610.1
69.4
67.1
28.5
25.8
35.8
32.9
6.1
6.7
19.4
26.9
10.5
8.8
76.0
64.0
245.7
232.2
50.3
50.3
19.0
18.1
23.9
22.2
3.9
4.6
12.4
17.5
4.4
3.4
36.4
30.7
150.3
146.8
19.1
16.8
9.5
7.7
11.9
10.7
2.2
2.1
7.0
9.4
6.1
5.4
39.6
33.3
95.4
85.4
0.0
0.0
0.0
0.0
2.3
0.3
10.4
0.5
2.5
13.7
2.0
0.0
60.3
–0.1
77.5
14.4
52.8
59.1
23.7
24.9
14.1
15.8
7.2
3.3
2.1
3.1
6.0
3.2
97.9
102.3
203.8
211.7
0.0
50.0
0.0
50.0
0.0
75.7 –143.4 –138.7
201.5
180.6
1 201
1 155
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
119.4
110.7
42.9
42.6
69.7
66.4
5.6
0.3
17.2
23.6
90.1
590
606
237
232
192
175
70
70
50
51
–38
–107
100
15 036 15 467
5 438
5 509
4 343
3 833
304
265
1 126
2 418
5 142
3 216
1 159
128
525.4
494 32 548 31 202
28.7
28.3
30.0
27.7
29.9
28.6
32.3
65.0
50.1
50.2
9.8
10.0
37.1
20.2
18.3
18.1
18.4
36.3
37.9
8.0
0.4
34.4
46.3
–
–
16.8
15.6
293
296
128
128
131
130
38
43
87
127
15
14
746
731
1 438
1 469
2 873
3 118
752
792
2 264
1 601
100
97
491
960
2 173
1 327
185
303
8 838
8 198
*)
incl. net result from financial operations
**)
incl. corporate bonds/credit linked notes
F-29
37.2
Segment report by geographic regions
Germany
Other Europe
Head Office/
Consolidation
America
Total
1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 – 1.4.04 – 1.4.03 –
€ million
Net interest income
Net commission income
Net interest and commission income
Administrative expenses
Other operating income/expenses*)
Risk provisioning balance
Addition to reserves for general banking
risks (section 340f of HGB)
Result from ordinary activities
*)
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
31.3.05
31.3.04
367.1
346.6
129.3
136.6
10.9
14.6
21.8
27.6
529.1
82.8
75.9
13.1
9.0
0.1
–0.3
–1.6
0.1
94.4
84.7
449.9
422.5
142.4
145.6
11.0
14.3
20.2
27.7
623.5
610.1
150.5
150.8
15.7
14.0
3.5
3.4
76.0
64.0
245.7
232.2
12.5
14.0
4.5
0.2
0.2
0.3
60.3
–0.1
77.5
14.4
75.8
77.4
28.5
31.0
1.6
1.0
97.9
102.3
203.8
211.7
–
50.0
–
50.0
–
10.2 –143.4 –138.7
201.5
180.6
–
–
–
–
–
236.1
208.3
102.7
100.8
6.1
525.4
incl. net result from financial operations
We allocate the segments to geographic regions according to the respective location of our offices or Group companies.
This presentation simultaneously fulfills the requirements of EU Bank Accounts Directive, which calls for a regional
breakdown of income items.
Additions to/reversals of loan loss provisions in the Group
IKB Group
2004/2005
2003/2004
€ million
Additions to specific loan loss provisions
Direct write-downs less recoveries on loans previously written off
305
308
Addition to general loan loss provisions
Reversal of loan loss provisions
Net loan loss provisions
Result from securities held as liquidity reserve
Risk provisioning balance
5
17
293
89
204
4
28
284
72
212
In addition, we transferred € 50 million to general risk provisions pursuant to section 340f of the HGB.
Group loan loss provisions
€ million
Specific loan loss provisions/
provisions for lending business
General loan loss provisions
Total loan loss provisions
Reserves for general banking risks under section
340f of the German Commercial Code (HGB)
Total risk provisions
*)
Utilisation
IKB Group
Amounts
released
Additions*)
958
258
17
299
982
47
1 005
–
258
–
17
5
304
52
1 034
Balance as at
1 April 2004
–
1 005
incl. deconsolidation
F-30
Balance as at
31 Mar 2005
–
–
50
50
258
17
354
1 084
Management services
We provide management services for lending and custodial accounts, in particular for guarantees. The income from these
services is included under commission income.
Remuneration of executive bodies and advisors
IKB Group
€ thousand
2004/2005
IKB AG
€ thousand
Total
Total
Chairman of the Board of Managing Directors
Dr. Alexander v. Tippelskirch (from 1.4. to 9.9.2004)
Fixed remuneration
Variable remuneration
330
350
680
285
350
635
Stefan Ortseifen (from 9.9.2004 to 31.3.2005)
Fixed remuneration
Variable remuneration
298
500
798
282
500
782
1 749
2 650
4 399
1 615
2 650
4 265
8
72
80
8
72
80
93
753
846
93
753
846
Other members of the Board of Managing Directors
Fixed remuneration
Variable remuneration
Chairman of the Supervisory Board
Fixed remuneration
Variable remuneration
Other members of the Supervisory Board
Fixed remuneration
Variable remuneration
Travel expenses/VAT of the members of the Supervisory Board
Members of the Advisory Board (including VAT)
Former members of the Board of Managing
Directors and their surviving dependants
138
344
138
344
2 599
2 599
€ 25.7 million has been set aside as provisions for pension liabilities to former members of the Board of Managing Directors
and their surviving dependants.
Main components of the compensation system
Remuneration of the Board of Managing Directors
The members of the Board of Managing Directors currently receive remuneration comprising
• fixed annual basic remuneration, which is paid in monthly instalments; and
• variable remuneration components (which constituted approx. 60 % of total compensation during the financial year
under review).
The amount of the variable remuneration is determined by a target agreement system: for the 2004/2005 financial year, this
included targets that depend on the success of the company (65 %) and individual targets (35 %). The targets depending on
F-31
the success of the company relate to the result from ordinary activities, the cost/income ratio and the return on equity. The
individual targets include divisional, function and project-related targets. The first step in this process is to determine a target bonus. The bonuses earned are then determined according to the extent to which the targets have been reached, with
the minimum bonus being 30 % of the target and the maximum amount being twice the amount of the target bonus. The
variable remuneration components are determined each year after the single-entity and consolidated financial statements
are available. In this connection, a review is also conducted to ensure that the respective total remuneration is reasonable in
view of the annual results. Any remuneration from offices held within the Group is taken into account for this purpose. The
bank does not offer any stock option plans or similar schemes.
In accordance with the recommendations of the German Corporate Governance Code, the Board of Managing Directors’ total
remuneration thus comprises fixed and variable components including Group remuneration. The criteria for the amount of
remuneration are, in particular, the tasks of the respective member of the Board of Managing Directors, their personal
performance, the performance of the Board of Managing Directors as a whole as well as the economic situation, the performance and outlook of the enterprise, taking into account its peer companies. The bonus system is risk-based, as it does not
constitute guaranteed remuneration. As a rule it is not possible to change the agreed performance targets retroactively.
Decisions regarding the compensation of the Board of Managing Directors are taken by the Executive Committee of the
Supervisory Board. The Supervisory Board last discussed the compensation system for the Board of Managing Directors during its meeting held on 15 February 2005.
Remuneration of the Supervisory Board
The compensation of the Supervisory Board is specified in the Memorandum and Articles of Association of IKB. Accordingly,
the members of the Supervisory Board receive reimbursement of their cash outlays and the VAT incurred on their remuneration, as well as fixed remuneration per financial year. This fixed annual remuneration totals € 4,000 for each individual member, twice this amount for the Chairman and one and a half times this amount for each Deputy Chairman. In addition, each
member of the Supervisory Board receives remuneration based on the company’s earnings. This variable component totals
€ 15,000 for each cent of the dividend per share in excess of € 0.25 per share. The resulting total amount of the variable compensation (€ 825,000) is distributed using the same system as the fixed remuneration. The member of the Finance and Audit
Committee who is not a member of the Executive Committee receives additional fixed remuneration totalling € 10,000 per
financial year. Remuneration is paid on a pro rata basis if members join or leave the Supervisory Board during the current year.
Loans to members of executive bodies, and of the Advisory Board (pursuant to section 285 (9) of the HGB)
Loans to members of executive bodies, and of the Advisory Board were granted in an aggregate amount of € 1.7 million.
Average number of employees for the financial year
IKB Group
2004/2005
2003/2004
884
892
554
577
1 438
1 469
(based on full-time employees)
Male
Female
Total
IKB AG
2004/2005
2003/2004
637
636
397
397
1 034
1 033
The lower staff numbers in the IKB Group were due to the deconsolidation of the IKB Immobilien Leasing Group (refer to the
section on the “Group of consolidated companies”).
F-32
Corporate Governance
Declaration of Compliance with the German Corporate Governance Code pursuant to section 161 of the AktG
On 1 July 2004, the Board of Managing Directors and the Supervisory Board issued the annual Declaration of Compliance
within the meaning of section 161 of the AktG and published this permanently on the company’s website.
Directors’ Dealings within the meaning of section 15a of the German Securities Trading Act
(Wertpapierhandelsgesetz – WpHG)
No transactions were reported in the reporting period.
As at 31 March 2005 there were no shareholdings with a reporting requirement within the meaning of Section 6.6 (2)
sentences 2 and 3 of the German Corporate Governance Code.
Related Party Disclosures
In line with GAS 11 and section 285 (9) of the HGB, we also disclose our relationships with related parties.
The following shareholders hold larger interests in IKB Deutsche Industriebank AG (IKB):
• KfW Beteiligungsholding GmbH 37.8 %
• Stiftung zur Förderung der Forschung für die gewerbliche Wirtschaft 11.7 %.
The remaining shares are held in free float.
KfW Beteiligungsholding GmbH is a wholly-owned subsidiary of Kreditanstalt für Wiederaufbau (KfW). KfW is a corporation
under public law, in which the Federal Republic of Germany (German Government) holds an 80 % interest, and the Federal
States hold a 20 % interest. According to section 12 (1) sentence 1 of the Act on the Kreditanstalt für Wiederaufbau (Gesetz
über die Kreditanstalt für Wiederaufbau), KfW is subject to supervision by the Federal Government.
With regard to the presence of voting capital at IKB’s General Meetings, KfW held the majority of voting rights at the last
two years’ General Meetings, with more than 50 % of votes.
The German Government can exercise a controlling influence over KfW. The Federal Government holds an 80 % interest in
KfW. In addition, it has a significant influence on the composition of the KfW’s Board of Supervisory Directors (Verwaltungsrat). The shares of IKB held by KfW are thus deemed to belong to the Federal Government within the meaning of section 16 (4) of the AktG. As a result, IKB is dependent on the Federal Government.
IKB has prepared a subordinate status report within the meaning of section 312 of the AktG, which was audited in
accordance with section 313 of the AktG; however, this report is not published.
F-33
The following table offers an overview of such relationships for loans and advances to customers:
Lending volume
Average
Average
(amount drawn or
remaining term
interest rate
amount of commitment)
years
%
€ thousand
31 Mar 2005 31 Mar 2004 31 Mar 2005 31 Mar 2004 31 Mar 2005 31 Mar 2004
–
–
76
80
9.4
7.3
4.6
4.6
Parties
Board of Managing Directors
Executive staff
Employee representatives on
the Supervisory Board
57
91
5.8
6.8
4.0
4.4
900
1 100
3.3
4.2
3.7
3.7
Companies controlled by
shareholders’ representatives
137 359
71 898
6.5
2.8
4.6
6.5
Total
138 392
73 169
6.5
2.8
4.6
6.5
Shareholder representatives on
the Supervisory Board
All of these loans were granted at terms in line with prevailing market conditions and based on IKB’s standard principles of
business, and are secured with land rights and other collateral. These loans represent 0.4 % (2003/2004: 0.3 %) of the Group’s
total loan volume.
The following table illustrates other business relationships (excluding loans and advances to customers), which were also
entered into at prevailing market conditions.
Transaction
type
Parties
Companies controlled by
shareholders’ representatives
Securities
holding
by IKB
Companies controlled by
shareholders’ representatives
Interest
swaps
Average
Average
Volume
remaining term
interest rate
€ thousand
years
%
31 Mar 2005 31 Mar 2004 31 Mar 2005 31 Mar 2004 31 Mar 2005 31 Mar 2004
26 900
1 000
15 000
–
F-34
4.1
2.6
4.4
6.0
4.4
–
pays variable:
EURIBOR3M
receives fix: 3.68
–
Executive Bodies (updated: 31 March 2005)
The following list of members of the Supervisory Board and Board of Managing Directors shows:
a) their membership in other statutory Supervisory Boards; and
b) similar offices held in comparable governing bodies of German and foreign companies.
Supervisory Board
Hans W. Reich, Frankfurt (Main)
Chairman of the Board of Managing
Directors of KfW Banking Group
Chairman
Dr. h. c. Ulrich Hartmann, Düsseldorf
Chairman of the Supervisory Board of
E.ON AG
a) Aareal Bank AG (Chairman)
Deutsche Post AG
Deutsche Telekom AG
HUK-COBURG Haftpflicht-Unterstützungs-Kasse
kraftfahrender Beamter Deutschlands a. G.
HUK-COBURG-Holding AG
Thyssen Krupp Steel AG
E.ON AG
a) E.ON AG (Chairman)
Deutsche Bank AG
Deutsche Lufthansa AG
Hochtief AG
Münchener Rückversicherungs-Gesellschaft AG
b) DePfa Bank plc.
b) Henkel KGaA
Arcelor S. A.
Dr. Alexander v. Tippelskirch, Düsseldorf
(from 9 Sep 2004)
Chairman of the Board of Managing Directors (ret’d.) of
IKB Deutsche Industriebank AG
Deputy Chairman
Herbert Hansmeyer, Munich
(from 7 June 2004 to 9 Sep 2004)
Member of the Management Board (rt’d.)
Allianz Aktiengesellschaft
a) Deutsche Gelantine-Fabriken Stoess AG (Chairman)
P-D INTERGLAS TECHNOLOGIES AG
(Deputy Chairman)
b) Johanniter-Krankenhaus Rheinhausen (Chairman)
IKB Facility-Management GmbH (Deputy Chairman)
Hako-Holding GmbH & Co
Hako-Werke Beteiligungsgesellschaft mbH
Hans-Martin Wälzholz-Junius Familienstiftung
Krono-Holding AG
nobilia-Werke J. Stickling GmbH & Co.
Prof. Dr.-Ing. E. h. Hans-Olaf Henkel, Berlin
(until 10 May 2004)
President of Wissenschaftsgemeinschaft
Gottfried Wilhelm Leibniz e.V.
a) Bayer AG
Continental AG
DaimlerChrysler Aerospace AG
SMS AG
b) Brambles Industries Ltd.
Orange S.A.
Ringier AG
F-35
Members
Dieter Ammer, Hamburg
(from 9 Sep 2004)
Chairman of the Management Board of
Tchibo Holding AG
a) Beiersdorf AG (Chairman)
Conergy AG ( Chairman)
mg technologies ag
b) Sparkasse in Bremen Finanzholding
(Deputy Chairman) (until 24 May 2005)
Jörg Asmussen, Berlin
Ministry Director in the
German Federal Ministry of Finance
a) Euler Hermes Kreditversicherungs-AG
Dr. Jürgen Heraeus, Hanau
Chairman of the Supervisory Board of
Heraeus Holding GmbH
a) Heraeus Holding GmbH (Chairman)
Messer Group GmbH (Chairman)
mg technologies ag (Chairman)
Teutonia Zementwerk AG (Chairman)
Heidelberger Druckmaschinen AG
EPCOS AG
b) Argor-Heraeus S.A. (Chairman)
Dr.-Ing. Mathias Kammüller, Ditzingen
(from 9 Sep 2004)
Chairman of the Management of
TRUMPF Werkzeugmaschinen GmbH + Co. KG
a) IWKA AG
Dr. Jürgen Behrend, Lippstadt
Managing and General Partner of
Hella KGaA Hueck & Co.
b) Alfred H. Schütte GmbH & Co. KG
AQS Automations- und Qualitäts-Systeme AG
Bürkert GmbH & Co.
HUBER VERPACKUNGEN GmbH & Co. KG
a) Leoni AG
Jörg Bickenbach, Düsseldorf
(until 9 Sep 2004)
State secretary (ret’d.) in the Ministry for the Economy and
Labour in the State of North-Rhine Westphalia
Wolfgang Bouché, Düsseldorf
Employee representative
Hermann Franzen, Düsseldorf
General Partner of
Porzellanhaus Franzen KG
a) NOVA Allgemeine Versicherung AG
(Deputy Chairman)
IDUNA Vereinigte Lebensversicherung aG
b) BBE-Unternehmensberatung GmbH (Chairman)
Roswitha Loeffler, Berlin
Employee representative
Wilhelm Lohscheidt, Düsseldorf
Employee representative
Jürgen Metzger, Hamburg
Employee representative
Roland Oetker, Düsseldorf
Managing Partner
ROI Verwaltungsgesellschaft mbH
a) Mulligan BioCapital AG (Chairman)
Degussa AG
Deutsche Post AG
Volkswagen AG
b) Dr. August Oetker-Gruppe
Scottish Widows Pan European
Smaller Companies OEIC
F-36
Ulrich Wernecke, Düsseldorf
Employee representative
Dr.-Ing. E.h. Eberhard Reuther, Hamburg
Chairman of the Supervisory Board of
Körber Aktiengesellschaft
a) Körber AG (Chairman)
Prof. Dr. h. c. Reinhold Würth, Künzelsau
(until 9 Sep 2004)
Chairman of the Advisory Board of
Würth Gruppe
Randolf Rodenstock, Munich
Managing Partner of
Optische Werke G. Rodenstock KG
a) Würth Gruppe (Chairman)
Waldenburger Versicherung AG (Chairman)
a) Rodenstock GmbH (Chairman)
E.ON Energie AG
b) Robert Bosch Stiftung GmbH
Würth S.r.l. (President)
Würth Danmark A/S
Würth Finance International B. V.
Würth France S. A.
Würth Ltd.
Würth Nederland B. V.
Würth New Zealand Ltd.
Würth Handelsges. m. b. H.
Würth AG
Würth España S. A.
Würth Group of North America Inc.
Würth South Africa Co. (Pty) Ltd.
Würth Canada Ltd.
Würth Otomotiv ve Montaj San. Ürün. Paz. Ltd. St.
Reca Danmark A/S
Rita Röbel, Leipzig
Employee representative
Dr. Michael Rogowski, Heidenheim
Chairman of the Supervisory Board of
Voith AG
a) Voith AG (Chairman)
Carl Zeiss AG
Deutsche Messe AG
HDI Haftpflichtverband der Deutschen Industrie V.a.G.
KSB AG
Talanx AG
b) European Aeronautic, Defense and Space
Company EADS N.V.
Dr. Carola Steingräber, Berlin
Employee representative
Dr. Norbert Walter-Borjans, Düsseldorf
(from 9 Sep 2004)
State secretary in the Ministry for the Economy and
Labour in the State of North-Rhine Westphalia
a) Messe Düsseldorf GmbH
b) Gesellschaft für Wirtschaftsförderung mbH (Chairman)
Japan K. K.
ZENIT GmbH
F-37
Board of Managing Directors
Dr. Markus Guthoff
Stefan Ortseifen
a) Carl Zeiss Meditec AG
MetaDesign AG
a) Allgemeine Kredit Coface Holding AG
Allgemeine Kreditversicherung Coface AG
b) IKB Data GmbH (Chairman)
IKB Private Equity GmbH (Chairman)
Argantis GmbH
Firmengruppe Poppe & Potthoff
IKB Capital Corporation
b) IKB International S. A. (Chairman)
IKB Capital Corporation (Vice Chairmann)
IKB CorporateLab S. A. (Vice Chairman)
DEG – Deutsche Investitions- und
Entwicklungsgesellschaft mbH (Deputy Chairman)
IKB Autoleasing GmbH (Deputy Chairman)
IKB Leasing GmbH (Deputy Chairman)
IKB Leasing Berlin GmbH (Deputy Chairman)
IKB Private Equity GmbH (Deputy Chairman)
Kreditanstalt für Wiederaufbau
Claus Momburg
b) IKB Autoleasing GmbH (Chairman)
IKB Leasing GmbH (Chairman)
IKB Leasing Berlin GmbH (Chairman)
IKB Immobilien Leasing GmbH
IKB CorporateLab S. A.
IKB International S. A.
Frank Schönherr
b) IKB Capital Corporation (Chairman)
IKB FINANCIERE FRANCE S. A. (Président Directeur Général)
Joachim Neupel
b) IKB Facility-Management GmbH (Chairman)
IKB Immobilien Leasing GmbH (Chairman)
IKB Immobilien Management GmbH (Chairman)
IKB International S. A. (Deputy Chairman)
IKB Autoleasing GmbH
IKB Leasing GmbH
IKB Leasing Berlin GmbH
IKB Private Equity GmbH
Offices held by employees of
IKB Deutsche Industriebank AG
Information within the meaning of section 340a (4) no. 1 of
the HGB
Klaus Reineke
GKD Gebr. Kufferath AG
F-38
Shareholdings within the meaning of sections 285 No. 11/313 (2) of the HGB
Letter
of comfort
Equity
interest
%
x
100
323 2174)
x
x
x
x
100
100
100
100
4 000
15 000
1 340
59
– 1)
– 1)
340
12
IKB Grundstücks GmbH & Co.
Objekt Degerloch KG, Düsseldorf
x
100
6 492
101 5)
IKB Grundstücks GmbH & Co.
Objekt Holzhausen KG, Düsseldorf
x
100
8 990
440 5)
IKB Grundstücks GmbH & Co.
Objekt Uerdinger Straße KG, Düsseldorf
x
100
8 858
188 5)
IKB Grundstücks GmbH & Co.
Objekt Wilhelm-Bötzkes-Straße KG, Düsseldorf
x
100
63 039
4 147 5)
IKB Immobilien Management GmbH, Düsseldorf
IKB Leasing GmbH, Hamburg
IKB Leasing Berlin GmbH, Erkner
IKB Mezzanine Verwaltungs GmbH, Düsseldorf
IKB Mezzanine GmbH & Co. KG, Düsseldorf
IKB Private Equity GmbH, Düsseldorf
AIVG Allgemeine Verwaltungsgesellschaft mbH, Düsseldorf
IMAS Grundstücks-Vermietungsges. mbH, Düsseldorf
x
x
x
x
x
x
x
x
75
100
100
100
100
100
100
100
863
30 000
8 000
21
–2 073
70 000
5 114
2 236
1 159
– 1)
– 1)
1 3)
–2 080 3) 5)
– 1)
233
1 973
ISTOS Beteiligungs- und GrundstücksVermietungsges. mbH, Düsseldorf
x
100
29
x
x
x 6)
x 6)
100
100
100
100
100
36 455
8 066
76 126
75 1514)
400 0874)
50
50
14 052
5 194
3 425 3)
3 745
x
100
30
8 587
13 270
22
5 493 3)
x
100
100
100
100
100
100
100
100
100
575
75 068
400 001
300
1 503
1 019
809
1 554
2 799
74 3)
3
0
0 3)
840 3)
–357 3)
0 3)
–586 3)
–2 293 3)
A. Consolidated subsidiaries
1. Foreign banks
IKB International S.A., Luxemburg
2. Other German companies
IKB Autoleasing GmbH, Hamburg
IKB Data GmbH, Düsseldorf
IKB Facility-Management GmbH, Düsseldorf
IKB Grundstücks GmbH, Düsseldorf
3. Other foreign companies
IKB Capital Corporation, New York
IKB Finance B.V., Amsterdam
IKB FINANCIERE FRANCE S.A., Paris
IKB Funding LLC I, Wilmington, Delaware
IKB Funding LLC II, Wilmington, Delaware
B. Associated companies
IKB CorporateLab S. A., Luxemburg
IKB Immobilien Leasing GmbH, Düsseldorf
C. Non-consolidated companies 2)
1. German companies
IKB Projektentwicklung GmbH, Düsseldorf
Linde Leasing GmbH, Wiesbaden
2. Foreign companies
IKB Finanz Leasing AG, Budapest
IKB Funding Trust I, Wilmington, Delaware
IKB Funding Trust II, Wilmington, Delaware
IKB Leasing France S. A. R. L., Marne
IKB Leasing Hungaria GmbH, Budapest
IKB Leasing Polska GmbH, Posen
IKB Leasing SR s.r.o., Bratislava
IKB Leasing Tschechien GmbH, Prag
Still Location S. A. R. L., Marne
1)
2)
3)
There is a profit and loss transfer agreement
Not included in the consolidated financial statements
within the meaning of section 296 (2) of the HGB
Indirect interest
x
x
x
x
x
x
4)
5)
6)
F-39
Shareholders’
equity
€ thousand
Earnings
€ thousand
11 750
–1
3 929
509
2 277
58
35
incl. silent partnership contributions/preferred shares
Section 264 b is used for the company (own Notes are not prepared)
Subordinated declaration of backing
A full list of our shareholdings, which also includes the names of 44 companies of IKB’s subsidiaries, is deposited with the
Commercial Registers of the Local Courts in Düsseldorf (HRB 1130) and Berlin-Charlottenburg (HRB 8860) in line with
section 325 of the HGB in connection with section 287 of the HGB; it can be requested from our offices free of charge.
Düsseldorf, 10 May 2005
IKB Deutsche Industriebank AG
Düsseldorf and Berlin
The Board of Managing Directors
F-40
Auditors’ Report
KPMG Deutsche Treuhand-Gesellschaft Aktiengesell-
internal control system relating to the accounting
schaft Wirtschaftsprüfungsgesellschaft has confirmed
system and the evidence supporting the disclosures
the German annual accounts of IKB Deutsche Indust-
in the books and records, the annual and consolidated
riebank as follows:
financial statements and the report on the position
of the Company and the Group are examined prima-
We have audited the annual financial statements,
rily on a test basis within the framework of the audit.
together with the bookkeeping system, of IKB
The audit includes assessing the accounting and con-
Deutsche Industriebank Aktiengesellschaft as well as
solidation principles used and significant estimates
the consolidated financial statements and its
made by management, as well as evaluating the ove-
report on the position of the Company and the Group
rall presentation of the annual and the consolidated
prepared by the Company for the business year from
financial statements and the report on the position
1 April 2004 to 31 March 2005. The preparation of
of the Company and the Group. We believe that our
these documents in accordance with German
audit provides a reasonable basis for our opinion.
commercial law is the responsibility of the company‘s
management. Our responsibility is to express an
Our audit has not led to any reservations.
opinion on the annual financial statements, together
with the bookkeeping system, as well as on the con-
In our opinion, the annual and the consolidated
solidated financial statements and the report on the
financial statements give a true and fair view of the
position of the Company and the Group based on our
net assets, financial position and results of
audit.
operations of the Company and the Group, respectively, in accordance with German principles of proper
We conducted our audit of the annual and consolida-
accounting. On the whole the report on the position
ted financial statements in accordance with § 317
of the Company and the Group provides a suitable
HGB (Handelsgesetzbuch/German Commercial Code)
understanding of the Company‘s and the Group‘s
and the German generally accepted standards for the
position and suitably presents the risks of future
audit of financial statements promulgated by the
development.
German Institut der Wirtschaftsprüfer (IDW). Those
standards require that we plan and perform the audit
such that misstatements materially affecting the pre-
Düsseldorf, 31 May 2005
sentation of the net assets, financial position and
results of operations in the annual and the consolida-
KPMG Deutsche Treuhand-Gesellschaft
ted financial statements in accordance with German
Aktiengesellschaft
principles of proper accounting and in the report on
Wirtschaftsprüfungsgesellschaft
the position of the Company is detected with reasonable assurance. Knowledge of the business activities
Wohlmannstetter
Pukr0pski
and the economic and legal environment of the Com-
German Public Auditor
German Public Auditor
pany and the Group and evaluations of possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the
F-41
Consolidated Balance Sheet of IKB Deutsche Industriebank
Assets
Cash reserve
a) Cash on hand
b) Balances with central banks
thereof: with Deutsche Bundesbank
c) Balances in postal giro accounts
EUR thousand*
33 574
31 March 2003
EUR thousand
88
33 688
94
26 961
198
33 974
110
27 165
1 070 176
168 225
1 238 401
24 115 962
1 341 480
798 150
2 139 630
24 803 021
–
8 171 336
8 171 336
–
5 858 361
5 858 361
40 035
68 494
8 211 371
5 926 855
86 514
37 520
40 082
38 157
5 313
–
32 539
6 966
5 041
5 688
2 329
262 417
2 230 731
27 404
555 757
108 438
–
245 416
2 466 056
48 867
528 555
135 850
36 956 273
36 409 746
(26 852)
Loans and advances to banks
a) payable on demand
b) Other placements, loans and advances
Loans and advances to customers
thereof: Loans to local authorities
31 March 2004
EUR thousand
1 361 019 (2 192 654)
Bonds and notes
and other fixed-income securities
a) Bonds and notes
aa) public-sector issuers
ab) other issuers
thereof: securities eligible as collateral
with Deutsche Bundesbank
4 836 910 (4 198 150)
b) own bonds issued
nominal amount
37 962
(65 555)
Equities and other
non-fixed income securities
Investments
thereof: in banks
thereof: in financial services providers
Investments in associated companies
thereof: in banks
thereof: in financial services providers
Interests in affiliated companies
thereof: in banks
thereof: in financial services provider
Trust assets
thereof: Trustee loans
Intangible assets
Tangible fixed assets
Leased assets
Unpaid contributions by minority shareholders
Other assets
Deferred items
37 055
–
(37 086)
(–)
–
5 313
(–)
(–)
–
–
(–)
(–)
3 629
(4 262)
Total assets
* in parentheses: Previous year’s figures
F-42
as at 31 March 2004
Liabilities
Liabilities to banks
a) payable on demand
b) with agreed term or period of notice
EUR thousand*
Liabilities to customers
Other liabilities
a) payable on demand
b) with agreed term or period of notice
Securitised liabilities
Bonds issued
Trust liabilities
thereof: Trustee loans
Other liabilities
Deferred items
Provisions
3 629
31 March 2003
EUR thousand
989 391
14 122 818
15 112 209
1 383 609
14 839 721
16 223 330
52 210
2 176 077
2 228 287
115 620
1 903 512
2 019 132
14 733 551
5 041
13 699 786
5 688
531 303
315 947
539 307
456 165
135 675
128 642
110 203
64 253
310 131
3 576
1 041 756
562 630
149 353
59 478
337 473
5 934
631 756
613 759
80 000
–2 421
80 000
11 434
225 280
225 280
570 000
250 000
820 000
567 416
370 000
250 000
620 000
567 416
2 399
–
348 768
351 167
70 400
2 034 263
2 399
–
303 127
305 526
67 760
1 785 982
36 956 273
36 409 746
1 538
1 873 977
1 875 515
1 280
2 158 340
2 159 620
8 720 136
6 872 346
(4 262)
a) provisions for pensions
and similar obligations
b) provisions for taxes
c) other provisions
Special tax-allowable reserves
Subordinated liabilities
Profit-participation certificates (Genussscheinkapital)
thereof: Maturing within two years
92 033
Fund for general banking risks
Minority interest
Equity
a) subscribed capital
conditional capital:
22 528
b) hybrid capital
ba) silent partnership contributions
bb) preferred shares
31 March 2004
EUR thousand
(51 129)
(22 528)
c) capital reserves
d) revenue reserves
da) legal reserves
db) reserves for treasury shares
dc) other revenue reserves
e) consolidated profit
Total liabilities
Contingent liabilities
a) contingent liabilities from discounted forwarded bills
b) liabilities from guarantees and indemnity agreements
Other obligations
Irrevocable loan commitments
* in parentheses: Previous year’s figures
F-43
Consolidated Income Statement of IKB Deutsche Industriebank
Expenses
Interest expenses
Commission expenses
Net expenditure on financial operations
General administrative expenses
a) Personnel expenses
aa) Wages and salaries
EUR thousand*
ab) Compulsory social security contributions and expenses
for pensions and other employee benefits
thereof: Pension expenses
14 486
2003/2004
EUR thousand
2 359 906
9 480
–
2002/2003
EUR thousand
2 331 353
11 849
–
116 504
110 698
30 302
27 111
146 806
65 424
212 230
137 809
65 143
202 952
(12 799)
b) other administrative expenses
Amortisation/depreciation and write-downs
of intangible and tangible fixed assets
22 982
19 373
Amortisation/depreciation of leased assets
343 324
396 167
Rent for leased assets and
other performance-related expenses
24 996
12 499
Other operating expenses
30 694
33 072
211 741
183 421
180
193
–
–
–
69 329
6
361
–
76 804
6 420
4 153
Amortisation and write-downs of
receivables and specific securities, as well as
additions to loan loss provisions
Amortisation and write-downs of investments,
interests in affiliated companies,
and investment securities
Cost of loss absorption
Allocations to special tax-allowable reserves
Allocations to fund for general banking risks
Income taxes
Other taxes not disclosed under
“other operating expenses”
Profits transferred under a profit-pooling agreement, profit transfer
agreement or partial profit transfer agreement
Net income
Total expenses
Net income
Minority interest ...
Profits
Losses
Allocation to revenue reserves
to other revenue reserves
Consolidated profit
* in parentheses: Previous year’s figure
F-44
–
–
104 827
3 396 109
85 839
3 358 042
104 827
85 839
–5 488
7 913
107 252
–3 070
10 605
93 374
–36 852
70 400
–25 614
67 760
for the Period from 1 April 2003 to 31 March 2004
Income
Interest income from
a) lending and money market operations
b) fixed-income securities and debt register claims
Current income from
a) equities and other non-fixed income securities
b) investments
c) interests in affiliated companies
Income from profit-pooling, profit transfer, and
partial profit transfer agreements
Income from investments in associated companies
Commission income
Net result from financial operations
Income from write-ups on investments,
interests in affiliated companies, and
investment securities
Income from leasing transactions
Income from the reversal of special tax-allowable reserves
Other operating income
Total income
F-45
2003/2004
EUR thousand
2002/2003
EUR thousand
2 505 708
221 620
2 727 328
2 478 596
178 398
2 656 994
1 024
687
–
1 711
645
1 160
–
1 805
–
–
313
94 136
3 249
–
75 960
842
–
–
524 229
306
44 837
566 239
1 997
54 205
3 396 109
3 358 042
Balance Sheet of IKB Deutsche Industriebank AG
Assets
Cash reserves
a) Cash on hand
b) Balances with central banks
thereof: with Deutsche Bundesbank
c) Balances in postal giro accounts
EUR thousand*
33 574
31 March 2003
EUR thousand
76
33 645
85
26 880
105
33 826
100
27 065
1 897 630
6 054 493
7 952 123
21 218 781
1 766 572
6 413 008
8 179 580
21 840 364
–
7 658 603
7 658 603
–
5 635 468
5 635 468
40 035
68 494
7 698 638
5 703 962
11 351
13 000
916
946
509 160
390 465
5 041
5 688
65 305
–
58 428
–
399 637
109 573
38 004 351
416 600
131 934
36 768 032
(26 852)
Loans and advances to banks
a) payable on demand
b) Other placements, loans and advances
Loans and advances to customers
thereof: Loans to local authorities
31 March 2004
EUR thousand
1 361 019 (2 192 654)
Bonds and notes
and other fixed-income securities
a) Bonds and notes
aa) public-sector issuers
ab) other issuers
thereof: securities eligible as collateral
with Deutsche Bundesbank
b) own bonds issued
nominal amount
4 759 579 (4 038 550)
37 962
(65 555)
Equities and other
non-fixed income securities
Investments
thereof: in banks
thereof: in financial services providers
Interests in affiliated companies
thereof: in banks
thereof: in financial services providers
Trust assets
thereof: Trustee loans
Tangible fixed assets
Treasury shares
nominal value
Other assets
Deferred items
Total assets
263
–
( 294)
(–)
164 839
–
(164 839)
(–)
3 629
(4 262)
–
(–)
* in parentheses: Previous year’s figures
F-46
as at 31 March 2004
Liabilities
Liabilities to banks
a) payable on demand
b) with agreed term or period of notice
EUR thousand*
Liabilities to customers
Other liabilities
a) payable on demand
b) with agreed term or period of notice
Securitised liabilities
Bonds issued
Trust liabilities
thereof: Trustee loans
Other liabilities
Deferred items
Provisions
3 629
31 March 2003
EUR thousand
893 303
15 871 335
16 764 638
1 135 746
16 141 274
17 277 020
49 418
2 124 167
2 173 585
134 996
1 899 093
2 034 089
14 722 996
5 041
13 653 204
5 688
385 053
100 849
380 558
123 067
119 044
113 450
98 035
61 772
278 851
1 291 781
562 630
139 883
57 846
311 179
881 781
613 759
80 000
80 000
225 280
225 280
400 000
567 416
200 000
567 416
2 399
–
373 432
375 831
70 400
1 638 927
2 399
–
344 832
347 231
67 760
1 407 687
38 004 351
36 768 032
1 537
3 992 411
3 993 948
1 280
4 621 489
4 622 769
8 332 036
6 548 341
(4 262)
a) provisions for pensions
and similar obligations
b) provisions for taxes
c) other provisions
Subordinated liabilities
Profit-participation certificates (Genussscheinkapital)
thereof: maturing within two years
92 033
Fund for general banking risks
Equity
a) subscribed capital
conditional capital:
22 528
b) silent partnership constributions
c) capital reserves
d) revenue reserves
da) legal reserves
db) reserves for treasury shares
dc) other revenue reserves
31 March 2004
EUR thousand
(51 129)
(22 528)
e) distributable profit
Total liabilities
Contingent liabilities
a) contingent liabilities from discounted forwarded bills
b) liabilities from guarantees and indemnity agreements
Other obligations
Irrevocable loan commitments
* in parentheses: Previous year’s figures
F-47
Income Statement of IKB Deutsche Industriebank AG
2003/2004
EUR thousand
2 262 719
6 179
2002/2003
EUR thousand
2 316 064
9 214
86 232
80 270
24 441
22 288
110 673
61 311
171 984
102 558
57 523
160 081
Amortisation/depreciation and write-downs
of intangible and tangible fixed assets
14 098
12 425
Other operating expenses
13 681
12 454
185 276
153 417
31
–
142
72 110
Expenses
Interest expenses
Commission expenses
General administrative expenses
a) Personnel expenses
aa) Wages and salaries
EUR thousand*
ab) Compulsory social security contributions and expenses
for pensions and other employee benefits
thereof: Pensions expenses
12 865
(11 939)
b) other administrative expenses
Amortisation and write-downs of receivables and specific
securities, as well as additions to loan loss provisions
Amortisation and write-downs of investments,
interests in affiliated companies,
and investment securities
Cost of loss absorption
Income taxes
–
61 689
Other taxes not disclosed under
“other operating expenses”
Net income
Total expenses
Net income
Withdrawals from revenue reserves
from the reserves for treasury shares
Allocation to revenue reserves
to other revenues reserves
Distributable profit
* in parentheses: Previous year’s figure
F-48
1 151
484
99 000
2 815 808
110 361
2 846 752
99 000
110 361
–
–
– 28 600
70 400
– 42 601
67 760
for the Period from 1 April 2003 to 31 March 2004
Income
Interest income from
a) lending and money market operations
b) fixed-income securities and debt register claims
Current income from
a) equities and other non-fixed income securities
b) investments
c) interests in affiliated companies
Income from profit-pooling, profit transfer,
and partial profit transfer agreements
Commission income
Net result from financial operations
Income from write-ups on investments,
interests in affiliated companies,
and investment securities
Other operating income
Total income
F-49
2003/2004
EUR thousand
2002/2003
EUR thousand
2 458 890
203 222
2 662 112
2 519 874
170 918
2 690 792
974
40
7 506
8 520
645
1 871
5 503
8 019
23 047
39 325
107 347
3 246
91 030
837
–
–
11 536
16 749
2 815 808
2 846 752
Notes to the Financial Statements of
IKB Group and IKB Deutsche
Industriebank AG
General standards and principles for the financial statements
The financial statements of IKB Deutsche Industriebank AG and the consolidated financial statements are prepared in accordance with the requirements of the German Commercial Code (Handelsgesetzbuch/HGB), in conjunction with the
German Accounting Directive for Banks (Verordnung über die Rechnungslegung der Kreditinstitute/RechKredV) as well as with
the relevant requirements of the German Public Limited Companies Act (Aktiengesetz/AktG). In addition, the consolidated
financial statements of the IKB Deutsche Industriebank Group are prepared in accordance with the European Consolidated
Accounts Directive (83/349/EEC) and Bank Accounts Directive (86/635/EEC), plus transparency requirements laid down by
the European Union.
These consolidated financial statements are in line with the standards adopted by the German Accounting Standards Board
(Deutscher Standardisierungsrat/DSR) and announced by the Federal Ministry of Justice, pursuant to section 342 (2) of the
HGB. These standards are applied to the extent that no other legal restrictions must be observed.
The standards DRS 10 “Deferred taxes in consolidated financial statements” and DRS 11 “Related party disclosure”, which
applied for the first time in the financial year 2003/2004, were taken into account accordingly. As the financial accounts
and the tax accounts are almost identical, DRS 10 does not have any impact on the consolidated financial statements.
The notes to the financial statements of IKB Deutsche Industriebank AG and the notes to the consolidated financial
statements have been presented together in accordance with section 298 (3) of the HGB.
Group of consolidated companies
In addition to the parent company, fourteen German and five foreign companies are included in the consolidated financial
statements at 31 March 2004. The consolidated companies are listed by name under the list of shareholdings in section A in
line with section 285 No. 11 of the HGB and section 313 (2) of the HGB. In accordance with section 325 of the HGB in
conjunction with section 287 of the HGB, we will submit to the Commercial Register a separate list of the 351 real estate
special purpose entities held via IKB Immobilien Leasing GmbH and the participating interests in 28 companies held via
other subsidiaries. Partnerships eligible for exemption in accordance with section 264 b of the HGB are listed separately in
these lists.
F-50
The group of consolidated companies was expanded in fiscal year 2003/2004 by the addition of the newly formed IKB
CorporateLab S.A., Luxembourg. This is a joint venture company together with UniCredit Banca Mobiliare, a subsidiary of
UniCredito Italiano. The purpose of the joint venture company is to offer our customer advisory and financial services,
primarily using derivatives to optimise balance sheet structures. Our 50 % equity interest of EUR 5 million is held by our
subsidiary IKB International S.A., Luxembourg. The company commenced operations on 1 October 2003. Its accounts are
prepared in line with International Financial Reporting Standards (IFRS). IKB Deutsche Industriebank AG has made irrevocable undertakings for a large number of individual transactions in each case using independent guarantees vis-à-vis IKB
CorporateLab S.A., to be responsible for outstanding compensation claims against this company’s swap contract partners
under certain conditions.
This company, which is consolidated for the first time, is carried and valued at equity in the consolidated financial statements as an associated company within the meaning of section 311 (1) of the HGB in connection with DRS 8 and 9. To the
extent necessary, the financial statements are adjusted to the Group’s valuation methods in a statement of reconciliation.
The company’s balance sheet date is 31 December of the respective calendar year. The company is included in the list of
investments under Point B.
Pursuant to section 296 (2) of the HGB, we have not included the other affiliated companies (list of investments under “C.”)
in the consolidated financial statements due to their minor importance for the presentation of the Group’s financial
position and results of operations.
73 real estate special purpose entities and general partnerships of the IKB Immobilien Leasing Group were deconsolidated
in financial year 2003/2004. We exercised our option within the meaning of section 296 (1) no. 1 of the HGB and have waived
their further inclusion. For these companies, there are far-reaching approval reservations by non-Group shareholders as a
result of regulations in their Articles of Association. These approval reservations exert a significant, sustained restriction on
IKB Immobilien Leasing GmbH exercising its right to manage these companies. In addition, six real estate leasing companies, for which the Group only provides agency services and for which all risks are with non-Group third parties, were deconsolidated.
These deconsolidations have the following major effects on the consolidated balance sheet and income statement: on the
assets side, leased assets have fallen by EUR 413 million, unpaid contributions by minority shareholders have fallen by
EUR 28 million and other assets are down by EUR 23 million. On the liabilities side, liabilities to banks have fallen by EUR 306
million, other liabilities are down EUR 22 million, deferred income is down EUR 121 million, and minority interests have
fallen by EUR 18 million net.
In the income statement, deconsolidation effects in the current year were neutral. An adjustment item of EUR 5 million was
allocated to other operating income for the costs incurred during the year and included in the individual items of the income
statement. Detailed identification and correction of the individual items would only be possible by spending a disproportionately high amount of time on the matter. As a result of the low material importance we have thus not performed such
an identification and correction.
In addition, EUR 36 million was offset against minority interests and EUR 9 million was offset against Group reserves. These
were taken directly to equity. The impact on the consolidated equity from deconsolidation is shown accordingly in the statement of changes in equity (see section on “Changes in capitalisation”).
F-51
Principles of consolidation
The consolidated financial statements were prepared in strict accordance with IKB Deutsche Industriebank AG’s accounting
and valuation methods detailed in the following section. The financial statements of the companies included were – if
necessary – adapted to conform with the classification requirements of the parent company. Both American
subsidiaries prepare their accounts according to US GAAP. As far as materially necessary we adapted the subsidiaries’
financial statements to HGB regulations by reconciliation.
Capital was consolidated at book value. For fully consolidated companies, the acquisition costs are offset against the equity
on the date of acquisition or initial consolidation. There is goodwill totalling EUR 41.3 million and negative goodwill
(badwill) totalling EUR 6.4 million. The balance of EUR 34.9 million was offset against revenue reserves.
The receivables and liabilities as well as income and expenses between consolidated companies are offset.
The financial statements of the companies included normally are dated on the balance sheet date of the parent company.
Differing from this rule the annual financial statements of the companies listed below are dated 31 December 2003:
•
•
•
•
•
•
•
•
AIVG Allgemeine Verwaltungsgesellschaft mbH
IKB Capital Corporation
IKB CorporateLab S.A.1)
IKB Facility-Management GmbH
IKB FINANCIERE FRANCE S.A.
IKB Grundstücks GmbH and its special purpose entities
IKB Immobilien Leasing GmbH and its special purpose entities
IKB Private Equity GmbH and its subsidiaries.
In the case of IKB Capital Corporation, we again prepared interim financial statements at 31 March 2004 in accordance with
section 299 (3) of the HGB.
1) associated
company
F-52
Accounting and valuation methods
Loans and advances
Loans and advances to banks and customers are disclosed at their nominal value, less write-downs. Differences between
repayment amounts and nominal values are included in deferred income and reversed on schedule.
General loan loss provisions
We have formed general loan loss provisions to cover possible loan losses. We calculated the general loan loss provisions
based on our own past experience and weightings.
Securities
Securities are disclosed under the heading “Bonds, notes and other fixed-income securities”, as well as “Equities and other
non-fixed income securities”. They are valued at the lower of cost or market as applies to current assets, i.e. at their costs of
purchase or the lower market price. Pursuant to section 280 of the HGB, we were obliged, if necessary to write up the value
of securities that had been written down in previous years to their current market value to a maximum amount of their
historical costs of purchase.
Individual securities holdings, together with allocated interest rate hedges (interest rate swaps) form a valuation unit (micro
hedge) under the provisions of law applying to valuation. In these cases, as a result of the interest rate hedges, it is permitted
to waive securities write-downs if these are based on changes in market interest rates; if the issuer’s creditworthiness is
sustainably impaired, partial write-downs are made.
Long-term investment securities predominantly comprise issues from international industrial companies (corporate bonds
and credit-linked notes), which we purchased intending to hold them up to the final maturity.
Financial investments/tangible fixed assets
Interests in affiliated companies and associated companies are carried at their depreciated historical costs.
Tangible fixed assets and leased items are valued at their costs of purchase or historical cost, less scheduled depreciation. In
the case of sustained impairment, the assets are subject to unscheduled write-downs. Low-value assets are written off in
full during their year of purchase.
In the financial year 2003/2004, the depreciation of mobile leasing assets was converted to their contractual residual values.
In previous years, depreciation was mostly using the straight line method over the useful life of the asset under application
of the simplification rule in the year the assets were acquired. The change in the depreciation method did not have any
notable impact on earnings. This change means that depreciation under the German Commercial Code is in line with the
contractual agreements for the leasing transactions.
F-53
Liabilities
Liabilities are carried at their repayment amount. Any difference between the repayment amount and the amount received
is carried as prepaid expenses and reversed according to schedule.
Provisions
Provisions for pensions and similar obligations are carried as a liability in accordance with actuarial principles, based on
Heubeck’s mortality tables and a 6 % rate of interest, and using the cost (Teilwert) method for pension expectancies and the
net present value of current pensions.
We form provisions for taxes and uncertain liabilities in the amount in which these are likely to be incurred. We have discounted provisions for cash liabilities – to the extent needed – in accordance with the tax regulations at 5.5 %.
Derivatives transactions
Derivative transactions (swaps, futures/forwards, options) are pending items and are not subject to a compulsory disclosure
requirement on the balance sheet. They are allocated to the banking or trading book when they are concluded, in line with
their purpose. To the extent that derivative financial transactions are to be allocated to the trading book, these are valued in
line with the principle of imparity and realisation based on their current market values. Derivative financial transactions
implemented to hedge and manage interest rate and market risks for the banking book are subject to uniform control and
evaluation of the risk of interest rate changes, together with financial transactions recognised on the balance sheet.
Changes to the market value of these transactions are thus not subject to monitoring on an individual basis.
Currency translation
On and off-balance sheet transactions denominated in foreign currency are translated in accordance with the principles
of section 340h of the HGB. Fixed assets denominated in foreign currency that are not specifically hedged have been translated at their historic exchange rates at the time of their acquisition.
All other assets, liabilities and other outstanding spot transactions denominated in foreign currency are valued at the reference rate of the European Central Bank (ECB) on the balance sheet date. If foreign exchange forwards are concluded to hedge
interest-bearing items on the balance sheet, premiums and discounts on the spot rate are offset against the net interest
income on a pro-rata basis. Hedged income or expenses are translated at the contracted forward rate.
In the income statement only expenses from currency translation according to section 340 h (2) of the HGB are taken into
account.
F-54
Notes on the balance sheet and income statement
Maturities of select balance sheet items by residual terms
IKB Group
EUR million
Other loans and advances to banks
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
Loans and advances to customers
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
Liabilities to banks
with agreed term or period of notice
IKB AG
31.3.2004
168
31.3.2003
798
31.3.2004
6 054
31.3.2003
6 413
45
28
76
19
24 116
311
290
165
32
24 803
3 963
1 816
145
130
21 219
4 920
1 156
282
55
21 840
3 969
2 950
11 028
6 169
3 915
2 981
11 447
6 460
3 231
2 560
9 753
5 675
3 709
2 537
9 801
5 793
14 123
14 840
15 871
16 141
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
5 110
1 893
3 813
3 307
4 210
2 044
4 891
3 695
5 536
3 647
3 733
2 955
5 108
3 064
4 807
3 162
Other liabilities to customers
with agreed term or period of notice
2 176
1 904
2 124
1 899
188
131
866
991
116
170
863
755
219
96
830
979
130
169
862
738
with a residual term of
– up to three months
– more than three months to one year
– more than one year up to five years
– more than five years
Of the bonds and notes and other fixed-income securities EUR 972 million (31 March 2003: EUR 853 million) in the Group
and EUR 967 million (31 March 2003: EUR 847 million) in IKB Deutsche Industriebank AG will mature in the next financial
year. Of the bonds issued carried on the balance sheet under securitised liabilities, EUR 4,620 million (31 March 2003:
EUR 5,198 million) are due next year for the Group and for IKB Deutsche Industriebank AG.
F-55
Treasury shares
At the General Meetings held on 30 August 2002 and 5 September 2003 we obtained authorisation to acquire our own
shares for the purpose of securities trading.
During the 2003/2004 financial year, we purchased a total of 8,032,135 treasury shares. The average purchase price was
EUR 16.38 per unit share. The same amount of shares was sold at an average share price of EUR 16.49. The net gains from
these transactions totaling EUR 913,000 are included in the net result from financial operations. The largest amount of
treasury shares held on any one day totaled 1.10 % of the share capital with a maximum threshold of 5 %. Our affiliated
companies did not engage in the sale or purchase of IKB shares. As at the balance sheet date no treasury shares were held
by the bank.
In order to allow our employees to purchase employee shares, we purchased 21,913 unit shares at an average price of
EUR 15.62. 15,975 unit shares were resold to employees of IKB Deutsche Industriebank AG at a preferred price of EUR 7.77.
A further 5,938 shares were acquired at the same conditions by employees of the Group. The resulting charges in the Group
totaled EUR 172.000 (IKB Deutsche Industriebank AG: EUR 125.000) and are included in personnel expenses.
Statement of changes in fixed assets
IKB Group
EUR million
Tangible assets
Intangible assets
Securities
Investments
Investments in
associated companies
Interests in affiliated
companies
Leased assets
Cost of purchase/
historical
costs
Additions
Disposals
Depreciation and Depreciation and Net book values Net book values
amortisation
amortisation
31 March 2004 31 March 2003
accumulated
financial year
414.5
–
937.8
40.1
40.7
2.4
1 558.4
1.9
48.6
–
186.7
–
144.2
0.1
–
1.9
22.9
0.1
–
0.0
262.4
2.3
2 309.5
40.1
245.4
–
937.8
38.2
–
5.3
–
–
–
5.3
–
7.0
25.6
0.1
–
–
32.5
7.0
3 296.5
657.4
871.7
851.5
343.3
2 230.7
2 466.1
IKB Deutsche Industriebank AG
EUR million
Tangible assets
Securities
Investments
Interests in affiliated
companies
Cost of purchase/
historical
costs
Additions
Disposals
Depreciation and Depreciation and Net book values Net book values
amortisation
amortisation
31 March 2004 31 March 2003
accumulated
financial year
156.1
937.8
2.2
21.7
1 523.9
0.0
46.2
185.0
–
66.3
–
1.3
14.1
–
0.0
65.3
2 276.7
0.9
58.4
937.8
0.9
449.6
118.9
0.2
59.1
–
509.2
390.5
F-56
The fixed assets include bonds, notes and other fixed-income securities as well as equities totalling EUR 2,309.5 million in
the Group (31 March 2003: EUR 929.6 million) and totalling EUR 2,276.7 million (31 March 2003: EUR 929.6 million) in the
IKB Deutsche Industriebank AG (IKB AG), that are not valued at the lower of cost or market. These securities are mostly
issues by international industrial companies (corporate bonds and credit-linked notes) which we have acquired as part of our
credit and investment business intending to hold them until maturity.
On 31 March 2004, the book value of the Group’s land and buildings used by the bank amounted to EUR 207.1 million, and
those of the IKB AG to EUR 24.2 million. The principal item in the Group is the headquarters building in Düsseldorf.
Operating and office equipment is included under the tangible fixed assets item, and totals EUR 36.7 million for the Group
and EUR 28.9 million for IKB AG.
Securities negotiable at a stock exchange
The negotiable securities contained in the balance sheet items listed below are differentiated as follows:
IKB Group
EUR million
Bonds, notes and other
fixed-income securities
Equities and other
non-fixed income securities
Investments
Interests in affiliated companies
IKB AG
not
listed
Total
listed
8 211.2
8 145.7
5.0
36.8
–
not
listed
Total
listed
65.5
7 698.6
7 650.3
48.3
5.0
–
5.0
5.0
–
36.8
–
–
–
0.0
151.9
–
–
–
151.9
Loans and advances, and liabilities to associated and affiliated companies
IKB Group
Affiliated
companies
63.5
345.6
EUR million
Loans and advances to banks
Loans and advances to customers
Bonds, notes and
other fixed-income securities
Liabilities to banks
Liabilities to customers
F-57
IKB AG
Investments
19.1
13.0
Affiliated
companies
6 826.7
1 914.4
Investments
19.1
0.0
–
–
–
–
424.1
24.3
6 178.9
9.7
2 396.4
17.0
6 171.9
–
Trust business
IKB Group
EUR million
Loans and advances to customers
Investments
Trust assets
31. 3. 2004
3.6
1.4
5.0
5.0
5.0
Liabilities to customers
Trust liabilities
IKB AG
31. 3. 2003
4.3
1.4
5.7
5.7
5.7
31. 3. 2004
3.6
1.4
5.0
31. 3. 2003
4.3
1.4
5.7
5.0
5.0
5.7
5.7
Subordinated assets
Subordinated assets are included in the following balance sheet asset items:
EUR million
Loans and advances to customers
Equities and other non-fixed income securities
Interests in affiliated companies
IKB Group
242.4
12.2
–
IKB AG
118.9
–
71.6
Foreign currency assets and liabilities
The following table shows currency amounts translated into euros. The differences between assets and liabilities are mostly covered by currency hedging transactions.
IKB Group
EUR million
Assets
Liabilities
31. 3. 2004
4 680
2 804
31. 3. 2003
5 093
2 321
IKB AG
31. 3. 2004
4 745
3 156
31. 3. 2003
4 805
2 566
Other assets and other liabilities
For both the Group and IKB AG, the largest single item in “Other assets” constitutes proportionate interest from interest rate
swaps and cross-currency swaps totalling EUR 353 million in the Group and EUR 345 million in the parent company. In
addition, this item is also used to disclose the equity interests held by IKB Private Equity GmbH (Group: EUR 108 million).
The remaining amount disclosed on both the consolidated and parent company balance sheets under this item mostly
relates to payment receivables and trade accounts receivables.
F-58
In both the consolidated and parent company financial statements, the amounts distributed on profit-participation
certificates (Genussscheine) for 2003/2004 (EUR 39 million) and the pro rata interest for subordinated liabilities and silent
partnership contributions (Group: EUR 41 million, IKB AG: EUR 36 million) are carried under “Other liabilities”. The pro-rata
interest from interest rate swaps is the largest single item and totals EUR 262 million (Group) and EUR 227 million (IKB AG).
A further major item is trade liabilities at EUR 114 million or EUR 7 million respectively.
Prepaid expenses and deferred income
The consolidated prepaid expenses totalled EUR 86 million (IKB AG: EUR 85 million) and relates to differences pursuant to section 250 (3) of the HGB and section 340 e (2) sentence 3 of the HGB (discounts from liabilities carried at their nominal value).
Consolidated deferred income totalled EUR 87 million (IKB AG: EUR 83 million). This shows differences pursuant to section
250 (2) of the HGB and section 340 e (2) sentence 2 of the HGB (discounts from loans and advances carried at their nominal
value).
Special tax-allowable reserves
The special tax-allowable reserves absorbed in the consolidated financial statements from the special purpose entities of IKB
Immobilien Leasing GmbH represent investment grants totalling EUR 3.6 million. EUR 2.1 million of the change against the
previous financial year is due to disposals resulting from the deconsolidation of various special purpose entities of the IKB
Immobilien Leasing Group and EUR 0.3 million relates to reversals.
Subordinated liabilities
Subordinated liabilities are eligible as equity within the meaning of the German Banking Act (Kreditwesengesetz/KWG) and
thus qualify as liable capital. There is no early repayment commitment. In the event of bankruptcy proceedings or liquidation, they may not be redeemed until all unsubordinated creditors have been satisfied.
Individual items which exceed 10 % of the total amount:
Year of issue
2000/01
2002/03*)
2003/04
*)
Book value
EUR million
150.0
250.0
300.0
Issue
currency
EUR
EUR
EUR
Interest rate
%
6.00
5.42
4.50
Due date for
redemption
27.02.2009
31.12.2031
09.07.2013
Floating-rate issue
Subordinated liabilities total EUR 1,041.8 million in the consolidated statements and EUR 1,291.8 million in the parent
company statements. Interest expenses during the financial year in this regard totalled EUR 50.6 million in the consolidated statements (2002/2003: EUR 54.5 million1) and EUR 61.4 million in the parent company statements (2002/2003:
EUR 63.8 million).
1) Previous
year’s figure adjusted
F-59
Profit-participation certificates
Profit-participation certificates totalling EUR 562.6 million meet the requirements set out in section 10 (5) of the KWG in the
amount of EUR 468.2 million and thus serve to strengthen the bank’s liable capital. The total amount of these certificates
may be used to cover losses. Interest payments are made solely on the basis of any distributable profit. The redemption
rights of the profit-participation certificate holders are subordinated to the entitlements of other creditors.
The profit-participation certificates are broken down as follows:
Year of issue
1993/94
1994/95
1995/96
1997/98
1999/00
2001/02
2001/02
Book value
EUR million
92.0
92.0
81.8
102.3
20.0
100.0
74.5
562.6
Issue
currency
DEM
DEM
DEM
DEM
EUR
EUR
EUR
Interest rate
%
7.30
6.45
8.40
7.05
7.23
6.50
6.55
Due date for
redemption
31.03.2005
31.03.2006
31.03.2007
31.03.2009
31.03.2010
31.03.2012
31.03.2012
Interest payments for the profit-participation certificates for the 2003/2004 financial year were incurred in the amount of
EUR 41.2 million (2002/2003: EUR 44.7 million). This is carried under interest expenses.
The Board of Managing Directors is authorised to issue profit-participation certificates – also with embedded conversion or
option rights – on one or several occasions until 30 August 2007 with a total nominal amount of up to EUR 300 million and
with a maximum maturity of 15 years. Conversion and option rights can be granted to the bearers of these profit-participation certificates with an interest in the share capital of up to EUR 22.5 million. No use has been made of this authorisation
to date.
Changes in capitalisation
Shareholders’ equity
Subscribed share capital amounted to EUR 225,280,000.00 on the balance sheet date and comprises 88,000,000 unit shares.
There is conditional capital totalling EUR 22.5 million to grant conversion or option rights to the bearers of convertible bonds
and bonds with warrants, with an aggregate nominal value of EUR 300 million to be issued by 3 September 2004. Furthermore, authorised capital totalling EUR 76.8 million was authorised. This authorisation is limited to 30 August 2007.
No use has been made of these authorisations to date.
F-60
Hybrid capital
At 31 March 2004, hybrid tier 1 capital in the Group amounted to EUR 820 million (31 March 2003: EUR 620 million) and to
EUR 400 million in IKB AG (31 March 2003: EUR 200 million). This capital complies with the requirements of section 10 (4) of
the KWG and is therefore attributed to our tier 1 capital for regulatory purposes.
Hybrid capital instruments comprise issues in the form of silent participations or preferred shares, the latter being issued by
a subsidiary formed exclusively for this purpose. In contrast to tier 2 capital these instruments are subject to stricter
maturity requirements. In the case of silent participations – basically issued as perpetuals – only the issuer is allowed to
terminate the contract after 10 years at the earliest; in the case of preferred shares an unlimited maturity for the investor is
agreed.
Moreover, in the case of insolvency hybrid capital instruments are subordinated to all subordinated liabilities and profitparticipation certificate issues.
Interest expenses for hybrid capital amounted to EUR 40 million (2002/2003: EUR 26 million) in the Group and EUR 17
million in IKB AG (2002/2003: EUR 4 million).
Consolidated profit
In contrast the previous year, the consolidated profit is disclosed in the consolidated financial statements in the amount of
the total dividends intended for disbursement. The additions made to revenue reserves in the financial statements of the
companies included in consolidation will not be included in the appropriation of profits in the consolidated income statement. The addition to the consolidated reserves results from the consolidated net income less or plus the profits or losses
due to minority interests and less the intended total dividend distribution. Comparable figures from the previous year have
been adjusted accordingly.
Statement of changes in consolidated equity
EUR million
Balance of parent company’s equity at 31 March of the previous year
Parent company’s share capital
+ Hybrid capital
+ Capital reserves
+ Consolidated equity generated
+ Accumulated other consolidated earnings,
to the extent that these are due to shareholders of the parent company
(here: earnings from the deconsolidation of various real estate SPEs)
= Parent company’s equity according to the consolidated balance sheet
– Treasury shares that the company does not intend to withdraw
= Parent company’s equity at 31 March
Balance of minority shareholder’s equity at 31 March of the previous year
– Change in minority shareholders’ equity
thereof: minority capital
thereof: accumulated other consolidated earnings,
to the extent due to minority shareholders
(here: earnings from the deconsolidation of various real estate SPEs)
= Minority shareholders’ equity at 31 March
Consolidated equity as at 31 March
F-61
2004
1 786
2003
1 311
200
–
39
450
–
25
9
–
2 034
–
2 034
1 786
–
1 786
11
–13
23
14
–3
–3
–36
–
–2
2 032
11
1 797
Statement of changes in IKB Deutsche Industriebank AG’s equity
EUR million
Balance at 1 April of previous year
Disbursement of distributable profit from previous year
Appropriation to other revenue reserves from net income
Addition to hybrid capital
Distributable profit as at 31 March
Balance at 31 March
2004
1 407.7
– 67.8
28.6
200.0
70.4
1 638.9
2003
1 165.1
–67.8
42.6
200.0
67.8
1 407.7
Regulatory indicators
The risk-weighted assets (in EUR million), as well as capital ratios in the Group (including the capital ratio according to the
German Banking Act), are broken down as follows on the balance sheet date:
as at 31 March 2004
EUR million
Balance-sheet transactions
Off-balance sheet transactions
Derivative transactions in the banking book
Total risk-weighted assets
Amount attributable for market risk
Aggregate items for mandatory inclusion
Liable capital *)
Capital elegible for inclusion *)
Tier 1 capital ratio (in %)
Capital ratio (in %)
*)
100
21 039
1 695
22 734
Attributable amounts in %
50
20
1 319
343
962
41
97
382
2 378
766
10
437
437
Total
23 138
2 698
479
26 315
313
26 628
3 411
3 411
7.4
12.8
After adaption of the annual financial statements
as at 31 March 2003
EUR million
Balance-sheet transactions
Off-balance sheet transactions
Derivative transactions in the banking book
Total risk-weighted assets
Amount attributable for market risk
Aggregate items for mandatory inclusion
Liable capital
Capital eligible for inclusion
Tier 1 capital ratio (in %)
Capital ratio (in %)
100
17 811
2 127
19 938
F-62
Attributable amounts in %
50
20
1 729
562
885
43
97
502
2 711
1 107
10
348
348
Total
20 450
3 055
599
24 104
425
24 529
2 972
2 972
7.4
12.1
Contingent liabilities and other commitments
Contingent liabilities
EUR million
Guarantees, indemnity agreements, other
Assumptions of liability
Total
IKB Group
1 670
206
1 876
IKB AG
3 789
205
3 994
Other commitments
EUR million
Loan commitments up to one year
Loan commitments more than one year
Total
IKB Group
7 043
1 677
8 720
IKB AG
6 733
1 599
8 332
At the balance sheet date our “Contingent liabilities” also comprise credit derivative contracts in the form of a credit default
swaps (where we have assumed the position of protection seller) within the item “Guarantees and indemnity agreements”
amounting to EUR 1,115 million (31 March 2003: EUR 1,334 million). As seller of protection we have assumed the risk of
counterparty default for certain credit portfolios, given the occurrence of pre-defined credit events. More than two-thirds of
the individual portfolios are rated in the best rating classes Aaa to A by the independent external rating agency Moody’s.
The item “Other commitments” comprises 16 loan commitments to special entities for EUR 6.7 billion, which only take effect
in the case of short-term liquidity bottlenecks.
Notes to the cash flow statement
The cash flow statement complies with the accounting requirements of the German Accounting Standards
Committee/Deutsches Rechnungslegungs Standards Kommittee (DRS 2-10) and shows the balance as well as the changes of
the Group’s cash and cash equivalents.
Changes to the cash and cash equivalents are broken down in line with their cause into cash flow from operating activities,
cash flow from investing activities and cash flow from financing activities. The cash flow from investment activities primarily comprises revenues from the sale and payments for the purchase of financial assets and tangible fixed assets. The cash
flow from financing activities includes all cash flows from transactions relating to equity and hybrid capital instruments as
well as subordinated liabilities and profit-participation certificates. In accordance with international practice for banks, all
other cash flows are assigned to operating activities.
The balance of cash and cash equivalents corresponds to the balance sheet item “cash reserve”, and primarily contains
balances held with central banks and cash in hand.
F-63
Cash flow statement
EUR million
2003/2004
Consolidated net income for the year
2002/2003
105
86
293
366
2
34
–
260
301
8
103
–2
–809
–9
–877
–121
954
495
–2 290
–50
–466
62
–454
–330
–1 008
–1
–266
479
–872
216
1 034
–167
3 188
–2 385
–108
–398
644
–231
715
–180
3 087
–2 344
–62
–72
–
1
3
4
–33
–43
3
–72
–68
–1
–50
–
–44
–68
Changes in funds from other financing activities on balance (mostly subordinated liabilities/
profit-participation certificates/revenue reserves/minority interest)
545
200
Cash flow from financing activities *)
477
132
27
–398
–72
477
34
11
–72
–44
132
27
Non-cash items in net income and reconciliation to the cash flow
from operating activities
Changes to loan loss provisions and provisions for the lending business
Depreciation/amortisation of tangible fixed assets, leased assets and financial assets
Minority interest income/losses on balance
Changes in other non-cash items (mostly changes in provisions)
Earnings from the disposal of financial assets and tangible fixed assets
Other adjustments (predominantly reclassification of interest paid and received
incl. earnings from leasing transactions and income taxes paid)
Subtotal
Changes in assets and liabilities from operating
activities after adjustment for non-cash items
Loans and advances
to banks
to customers
Bonds, notes and other fixed-income securities
Equities and other non-fixed income securities
Leased assets
Other assets from operating activities
Liabilities
to banks
to customers
Securitised liabilities
Other liabilities from operating activities
Received interest and dividends
Interest paid
Income tax payments
Cash flow from operating activities
Proceeds from the sale of
financial assets
tangible assets
Payments for the acquisition of
financial assets
tangible assets
Impact of changes to the group of consolidated companies
Cash flow from investing activities
Dividends paid
Cash and cash equivalents at end of previous period
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at the end of period
*)
Disclosure of minority interest in previous year under cash flow from operating activities.
Figure from previous year was adjusted accordingly.
F-64
Other Information
Other financial commitments
On the balance sheet date, payment commitments from shares, interests in German limited liability companies (GmbHs),
and interests in affiliated companies which have not been fully paid up, as well as from shares held by IKB Private Equity
GmbH and the subordinate loans totalled EUR 28 million for the Group, and EUR 1.3 thousand for IKB AG.
The bank has a pro rata additional payment obligation to Liquiditäts-Konsortialbank GmbH, Frankfurt/Main, Germany. In
addition, we bear a proportional contingent liability for fulfilling the funding obligations of other partners in the Association of German Banks (Bundesverband deutscher Banken e.V.). Moreover, pursuant to section 5 (10) of the Statutes for the
Joint Fund for Securing Customer Deposits (Statut für den Einlagensicherungsfonds), the bank has committed itself to indemnify the Association of German Banks from any losses arising due to measures in favour of banks in which it owns a majority interest.
At its balance sheet date of 31 December 2003, IKB Immobilien Leasing Group had incurred EUR 90 million in financial
obligations arising from contracted leases not yet carried under leased assets on the balance sheet.
IKB Leasing GmbH, Hamburg, has commitments from sale and leaseback transactions totalling EUR 59 million. The
commitments are offset with corresponding claims against lessees.
Letter of comfort
In accordance with section 285, No. 11 of the HGB/section 313 (2) of the HGB, IKB ensures, excluding political risk, that its
wholly-owned subsidiaries carried in the list of investments of IKB Deutsche Industriebank AG and marked as being covered
by the letter of comfort, will be able to meet their contractual liabilities. IKB Leasing GmbH, Hamburg, has issued letters of
comfort to Commerzbank Rt., Budapest, on behalf of the subsidiaries IKB Finanz Leasing AG, Budapest, and IKB Leasing
Hungaria GmbH, Budapest; in addition there is a corresponding letter of comfort for IKB Leasing CR, Prague, as collateral for
a credit line with Commerzbank AG, Prague branch.
Collateral for own liabilities
The Group and IKB Deutsche Industriebank AG have pledged assets and collateral totalling EUR 6,601 million for the
liabilities listed below.
EUR million
Liabilities to banks
Liabilities to customers
Total
6 577.2
23.8
6 601.0
We provide collateral above all for loans of Kreditanstalt für Wiederaufbau and other development banks. These institutes
have linked the issue of loans to the provision of collateral.
F-65
Assets pledged as collateral for own liabilities
(Information as defined in section 35 (5) of the RechKredV)
Fixed-income securities totalling EUR 4.6 billion have been pledged with Deutsche Bundesbank as collateral for the European Central Bank’s repurchase agreement process (collateral pool). On the balance sheet date, credit facilities totalling EUR
3.0 billion had been drawn upon.
We have provided collateral in the form of call accounts with the following banks in connection with credit derivative transactions:
• JP Morgan Chase Bank, London
• Wachovia Bank N.A., Charlotte/California
EUR 290 million.
EUR 250 million.
We have pledged the following cash collateral for interest rate derivatives as part of collateral management:
• Dresdner Bank AG, Frankfurt
• Royal Bank of Scotland, Edinburgh
• WestLB AG, Düsseldorf
EUR 10 million.
EUR 18 million.
EUR
4 million.
Securities with a nominal value of EUR 3.5 million have been pledged with Clearstream Banking AG, Frankfurt, to uphold
payment commitments for securities transactions. As part of futures trading on EUREX Deutschland, securities with a nominal value of EUR 5 million have been pledged with ING BHF-BANK AG, Frankfurt, to cover margin requirements. A security
with a nominal value of EUR 7 million has been deposited as collateral with Clearstream Banking, Luxembourg for securities
trading in Luxembourg.
The bank has pledged a security with a nominal value of EUR 51.1 million to Bayerische Landesanstalt für Aufbaufinanzierung (LfA) for a global loan of amounting to EUR 50 million.
As part of the issue of credit linked notes with a nominal value of USD 534 million (before repayment), at the balance sheet
date securities issued by Kreditanstalt für Wiederaufbau with a nominal value of USD 100 million were still pledged in
favour of a trustee. In addition, securities with a nominal value of USD 67 million were pledged with WestLB AG, London
branch, as collateral as part of an issue.
In order to cover loans taken out with third-party banks, the IKB Immobilien Leasing Group has transferred land charges
totalling EUR 424 million.
Forward contracts
While the IKB Group engages in forward contracts (swaps, forward rate agreements, and futures), these are almost exclusively hedges for balance sheet transactions and proprietary investments. Trading in these instruments is limited. The transaction volume is restricted by the use of counterparty-related limits and is subject to permanent monitoring by our Risk
Management.
F-66
Breakdown into product groups/residual maturities as at 31 March 2004
IKB Group
Nominal amount
EUR million
1. Interest-based transactions
OTC products
Forward rate agreements
Interest rate swaps
Interest rate options
Forward bonds
2. Currency-based transactions
OTC products
Foreign exchange forwards
Cross-currency swaps
Currency options
3. Equity/index-based transactions
Exchange-traded products
Equity options
Equity index options
Total
up to
1 year
more than more than
1 to 5 years 5 years
Counterparty risk
Credit equivalent
Total
up to
1 year
more than more than
1 to 5 years 5 years
Total
Total
30
2 305
90
241
–
7 295
153
221
–
12 704
248
284
30
22 304
491
746
0
24
0
6
–
148
1
1
–
1 573
18
90
0
1 745
19
97
0
1 518
14
92
1 798
187
25
15
2 285
30
–
415
–
1 813
2 887
55
25
3
1
1
143
2
–
49
–
26
195
3
7
47
1
1
1
4 678
–
–
9 999
–
–
13 651
1
1
28 328
0
0
59
–
–
296
–
–
1 730
0
0
2 085
0
0
1 679
IKB Deutsche Industriebank AG
Nominal amount
EUR million
1. Interest-based transactions
OTC products
Interest rate swaps
Interest rate options
Forward bonds
2. Currency-based transactions
OTC products
Foreign exchange forwards
Cross-currency swaps
Currency options
3. Equity/index-based transactions
Exchange-traded products
Equity options
Index swaps
Total
up to
1 year
more than more than
1 to 5 years 5 years
Counterparty risk
Credit equivalent
Total
up to
1 year
more than more than
1 to 5 years 5 years
Total
Total
2 330
90
241
6 596
49
221
10 901
304
–
19 827
443
462
29
0
6
184
0
1
1 532
18
–
1 745
18
7
1 549
14
6
1 757
124
25
–
2 239
30
–
419
–
1 757
2 782
55
25
2
1
–
137
2
–
48
–
25
187
3
7
43
1
1
1
4 569
–
–
9 135
–
–
11 624
1
1
25 328
0
0
63
–
–
324
–
–
1 598
0
0
1 985
0
0
1 620
Almost 91 % of the derivatives transactions in the Group and 97.5 % in IKB Deutsche Industriebank AG are with OECD banks
with first-class ratings. The remainder mostly comprises contracts with customer companies. The greater part of the derivatives volume (EUR 23.6 billion in the Group, EUR 20.7 billion for IKB AG) was attributable to interest rate transactions, with
interest rate swaps being the dominant product.
F-67
In order to illustrate the Group’s associated risk of counterparty default, the table shows the nominal volumes as well as the
credit quality weightings as credit equivalents and the positive market values (counterparty risk) of the forward transactions, based on the regulations under banking supervisory law (derived from the data to calculate the Grundsatz I capital
ratio according to the KWG). On the balance sheet date, the counterparty risk, which is defined as being the sum of all
positive market values, totalled EUR 1.7 billion for the Group, and EUR 1.6 billion for IKB AG. That corresponds to 6 % of the
nominal volume in each case. Existing netting agreements, which, in case of insolvency, allow existing receivables from and
liabilities to counterparties to be offset, are not taken into account.
Segment reporting
Segment reporting is geared towards the bank’s divisions. These divisions operate on the market as independent units.
Segment information is presented to show the divisions as independent enterprises responsible for their own earnings and
costs, and with their own capital resources. The operating divisions are:
•
•
•
•
•
•
Corporate Lending
Real Estate Finance
Structured Finance
Private Equity
Leasing and
Securitisation.
Results shown for the Securitisation segment comprise the earnings resulting from the bank’s activities in the fields of investments in international loan portfolios, advisory services to special
Segment Report
investment funds and the securitisation and outplacement of
credit risks.
Segment reporting is based on the internal, financial controloriented division accounts, which form part of IKB’s management
information system. This approach corresponds to the recommendations for banks of the German Accounting Standards
Committee (Deutsches Rechnungslegungs Standards Committee
in EUR million
Net interest income
Net commission income
Net interest and commission income
Administrative expenses
Personnel expenses
Other administrative
expenses
e.V./DRSC).
The figures of the Private Equity Division correspond with the
disclosure under commercial law of the sub-group IKB Private
Equity. In the segment report, the lending volume of Private Equity
is backed by an average of 25 % equity throughout the year. The
corresponding formal capital increase was implemented at the
end of 2003.
F-68
Other operating income/expenses*)
Risk provisioning balance
Result from ordinary activities
Ø Allocated tier 1 capital
Loan volume at 31 March**)
Cost/income ratio in %
Return on equity in %
Ø Number of staff
New business volume
Income and expenses are assigned to the other divisions in accordance with their respective responsibility. Net interest
income from lending is calculated using the market interest method; it also comprises the investment income from
economic capital. This investment income is allocated to the respective divisions in line with the average risk assets (in line
with the capital ratio in accordance with the KWG). In doing so a 4.8 % tier 1 capital ratio based on the risk-weighted assets
is allocated to the divisions. The disclosure of the average allocated negative tier 1 capital in the Securitisation segment
results from capital relief caused by CLO transactions including the offsetting against tier 1 capital used for investments in
international loan portfolios. Whenever they could be assigned to the divisions responsible, head office personnel and
material costs were allocated to the divisions. For the first time this financial year project costs were also allocated to the
divisions to the extent that the projects were directly attributable to them. The figures from the previous year were not
adjusted.
The allocation of loan exposure risk costs to the divisions is in line with standard risk costs methodology. The risk costs of the
head office result from the difference between the standard risk costs calculated for the segments and the risk provisioning
balance as reported in the consolidated income statement.
Each segment’s earnings are shown using the result from ordinary activities for the individual division. In addition, we measure the results recorded by the divisions using their return on equity and cost/income ratio. The return on equity is the ratio
of the result from ordinary activities to the average assigned tier 1 capital. The cost/income ratio is the ratio of administrative expenses to income.
by Divisions 2003/2004
Corporate
Lending
Real Estate
Finance
Structured
Finance
Private
Equity
Head Office/
Securitisation Consolidation
Leasing
Total
1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 –
31.3.04
31.3.03
31.3.04
31.3.03
31.3.04
31.3.03
31.3.04
31.3.03
31.3.04
31.3.03
31.3.04
31.3.03
31.3.04
31.3.03
31.3.04
31.3.03
230.5
225.1
84.0
81.7
99.3
94.0
10.1
4.1
44.6
43.6
29.3
2.4
27.6
34.1
525.4
6.4
5.7
9.3
7.9
15.5
14.4
–0.3
–0.6
–4.7
–3.7
58.4
45.3
0.1
–4.9
84.7
485.0
64.1
236.9
230.8
93.3
89.6
114.8
108.4
9.8
3.5
39.9
39.9
87.7
47.7
27.7
29.2
610.1
549.1
67.1
65.2
25.8
24.3
32.9
31.3
6.7
7.4
26.9
25.5
8.8
4.5
64.0
61.7
232.2
219.9
50.3
49.8
18.1
17.9
22.2
21.1
4.6
4.8
17.5
16.2
3.4
2.2
30.7
25.8
146.8
137.8
16.8
15.4
7.7
6.4
10.7
10.2
2.1
2.6
9.4
9.3
5.4
2.3
33.3
35.9
85.4
82.1
0.0
0.0
0.0
0.0
0.3
0.2
0.5
10.9
13.7
9.7
0.0
0.0
–0.1
0.2
14.4
21.0
6.5
102.3
60.1
211.7
183.4
36.7 –138.7
–92.4
180.6
166.8
1 155
1 112
59.1
62.8
24.9
24.1
15.8
18.4
3.3
6.3
3.1
5.2
3.2
110.7
102.8
42.6
41.2
66.4
58.9
0.3
0.7
23.6
18.9
75.7
606
626
232
241
175
179
70
24
51
47
–107
–204
128
199
15 467 16 022
494
171 31 202 30 721
5 509
5 532
3 833
4 209
265
191
2 418
2 659
3 216
1 937
28.3
28.2
27.7
27.1
28.6
28.8
65.0
51.4
50.2
51.4
10.0
9.4
37.2
18.3
16.4
18.4
17.1
37.9
32.9
0.4
2.9
46.3
40.2
–
–
15.6
15.0
296
299
128
126
130
126
43
46
127
125
14
10
731
701
1 469
1 433
3 118
2 658
792
765
1 601
1 494
97
32
960
710
1 327
1 402
303
–117
8 198
6 944
*)
incl. net result from financial operations
**)
incl. corporate bonds/credit linked notes
F-69
38.6
Segment report by geographic regions
We allocate the segments to geographic regions according to the respective location of our branches or Group companies.
Germany
Other Europe
Head Office/
Consolidation
America
Total
1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 – 1.4.03 – 1.4.02 –
EUR million
Net interest income
Net commission income
Net interest and commission income
Administrative expenses
Other operating income/expenses*)
Risk provisioning balance
Result from ordinary activities
*)
31.3.04
346.6
31.3.03
328.6
31.3.04
136.6
31.3.03
111.8
31.3.04
31.3.03
14.6
10.5
31.3.04
31.3.03
27.6
34.1
31.3.04
31.3.03
525.4
485.0
75.9
60.3
9.0
8.6
–0.3
0.1
0.1
–4.9
84.7
64.1
422.5
388.9
145.6
120.4
14.3
10.6
27.7
29.2
610.1
549.1
150.8
139.1
14.0
15.0
3.4
4.1
64.0
61.7
232.2
219.9
14.0
20.3
0.2
0.3
0.3
0.2
–0.1
0.2
14.4
21.0
77.4
89.0
31.0
32.8
1.0
1.5
102.3
60.1
211.7
183.4
208.3
181.1
100.8
72.9
10.2
5.2 –138.7
–92.4
180.6
166.8
incl. net result from financial operations
This presentation simultaneously fulfills the requirements of EU Bank Accounts Directive, which calls for a regional breakdown of income items.
Additions to/reversals of loan loss provisions in the Group
IKB Group
2003/2004
2002/2003
EUR million
Additions to specific loan loss provisions
Direct write-downs less recoveries on loans previously written off
308
269
Addition to general loan loss provisions
Reversal of write-downs
Net loan loss provisions
Result from securities held as liquidity reserve
Risk provisioning balance
4
28
284
72
212
4
25
248
65
183
Group loan loss provisions
Balance as at
1. 4. 2003
Utilisation
IKB Group
Amounts
released
Additions
Specific loan loss provisions/
provisions for lending business
910
208
28
284
958
General loan loss provisions
Total loan loss provisions
43
953
–
208
–
28
4
288
47
1 005
EUR million
F-70
Balance as at
31. 3. 2004
Management services
We provide management services for lending and custodial accounts, in particular for guarantees. The income from these
services is included under commission income.
Remuneration of the executive bodies and the Advisory Board
EUR thousand
Members of the Board of Managing Directors
Fixed remuneration
Variable remuneration components
Members of the Supervisory Board
Fixed remuneration
Variable remuneration components
Travel expenses/VAT
Members of the Advisory Board (including VAT)
Former members of the Board of Managing Directors and their surviving dependants
IKB Group
IKB AG
2 253
2 500
4 753
2 078
2 500
4 578
102
825
145
1 072
574
2 245
102
825
145
1 072
574
2 245
EUR 20.5 million has been set aside as provisions for pension liabilities to former members of the Board of Managing
Directors and their surviving dependants.
Remuneration structure for the Board of Managing Directors
The members of the Board of Managing Directors currently receive remuneration comprising
• fixed annual basic remuneration, which is paid in monthly instalments; and
• variable remuneration components (which constitute approx. 55 % of total remuneration).
The amount of the variable remuneration is determined by a target agreement system, which includes, in equal proportions,
targets that depend on the success of the company and individual targets. The targets depending on the success of the company relate to the result from ordinary activities, the cost/income ratio and the return on equity. The individual targets
include divisional, function and project-related targets. The first step in this process is to determine a target bonus. The
bonuses earned are then determined according to the extent to which the targets have been reached, with the minimum
bonus being 30 % of the target bonus and the maximum amount being twice the amount of the target bonus. The variable
remuneration components are determined each year after the parent company and consolidated financial statements are
available. In this connection, a review is also conducted to ensure that the respective total remuneration is reasonable in
view of the annual results. Remuneration from offices held within the Group is taken into account for this purpose.
The bank does not offer any stock option plans or similar schemes.
F-71
In accordance with the recommendations of the German Corporate Governance Code, the Board of Managing Directors’
total remuneration thus comprises fixed and variable components including Group remuneration. The criteria for the
amount of remuneration are, in particular, the tasks of the respective member of the Board of Managing Directors, the
personal performance, the performance of the Board of Managing Directors as a whole as well as the economic situation,
the performance and outlook of the enterprise, taking into account its peer companies. The bonus system is risk-based, as
it does not constitute guaranteed remuneration. As a rule it is not possible to change the agreed performance targets
retroactively.
Remuneration structure for the Supervisory Board
Remuneration for the Supervisory Board is set out in IKB Deutsche Industriebank AG’s Memorandum and Articles of Association. In line with this, the members of the Supervisory Board receive reimbursement of their cash outlays and the
VAT incurred on their remuneration, as well as fixed remuneration per financial year. This fixed annual remuneration totals
EUR 4,000 for each individual member, twice this amount for the Chairman and one and a half times this amount for each
Deputy Chairman. In addition, each member of the Supervisory Board receives remuneration based on the company’s earnings. This variable component totals EUR 15,000 for each cent of the dividend per share in excess of EUR 0.25 per share. The
total amount of the variable compensation is distributed using the same system as the fixed remuneration. The member of
the Finance and Audit Committee from the group of employee representatives in the Supervisory Board receives additional
fixed remuneration totaling EUR 10,000 per financial year.
Remuneration is paid on a pro rata basis if members join or leave the Supervisory Board during the current year.
Average number of employees for the financial year
(based on full-time employees)
IKB Group
2003/2004
2002/2003
892
846
577
587
1 469
1 433
Male
Female
Total
F-72
IKB AG
2003/2004
2002/2003
636
597
397
407
1 033
1 004
Corporate Governance
Declaration of Compliance with the German Corporate Governance Code pursuant to section 161 of the AktG
On 7 July 2003, the Board of Managing Directors and the Supervisory Board issued the annual Declaration of Compliance
within the meaning of section 161 of the AktG and published this permanently on the company’s website.
Directors’ Dealings within the meaning of section 15a of the German Securities Trading Act (Wertpapierhandelsgesetz/WpHG)
The following table provides an overview of the sale and purchase of shares of IKB Deutsche Industriebank AG by members
of the Board of Managing Directors and Supervisory Board, and their related parties:
Date of
transaction
12 Dec 2003
Name
Hermann Franzen
Function
Member of the Supervisory Board
Sale/
purchase
Purchase
Quantity
2 300
Share price
(EUR)
17.60
As at 31 March 2004 there were no shareholdings with a reporting requirement within the meaning of Section 6.6 (2)
sentences 2 and 3 of the German Corporate Governance Code.
Related party disclosures
In line with DRS 11, we also report our relationships with related parties.
The following shareholders hold larger interests in IKB Deutsche Industriebank AG (IKB):
• KfW Beteiligungsholding GmbH 37.8 %
• Stiftung zur Förderung der Forschung für die gewerbliche Wirtschaft 11.7 %.
The remaining shares are held in free float.
KfW Beteiligungsholding GmbH is a wholly-owned subsidiary of Kreditanstalt für Wiederaufbau, Frankfurt/Main (KfW). KfW
is a corporation under public law, in which the Federal Republic of Germany holds an 80 % interest, and the Federal States
hold a 20 % interest. According to section 12 (1) sentence 1 of the Act on the Kreditanstalt für Wiederaufbau (Gesetz über
die Kreditanstalt für Wiederaufbau), KfW is subject to supervision by the Federal Government.
With regard to the presence of voting capital at IKB’s General Meetings, KfW held the majority of voting rights at the last
two years’ General Meetings, with more than 50 % of votes.
The Federal Republic of Germany can exercise a controlling influence over KfW. The Federal Republic of Germany holds an
80 % interest in KfW. In addition, it has a significant influence on the composition of the KfW’s Board of Supervisory Directors
(Verwaltungsrat). The shares of IKB held by KfW are thus deemed to belong to the Federal Republic of Germany within the
meaning of section 16 (4) of the AktG. As a result, IKB is dependent on the Federal Republic.
F-73
IKB has prepared a subordinate status report within the meaning of section 312 of the AktG, however this report is not
published.
The following table offers an overview of the relationships for loans to customers:
Parties
Board of Managing Directors
Executive staff
Employee representatives on
the Supervisory Board
Lending volume
(amount drawn or
amount of commitment)
(EUR thousand)
–
80
Average
remaining term
(years)
Average
interest rate
(%)
7.3
4.6
91
6.8
4.4
Shareholder representatives on
the Supervisory Board
1 100
4.2
3.7
Companies controlled by
shareholders’ representatives
71 898
2.8
6.5
Total
73 169
2.8
6.5
Note: This information simultaneously fulfills the requirements of section 285 (9) of the HGB.
All of these loans were granted at terms in line with prevailing market conditions and based on IKB’s standard principles of
business, and are secured with land rights and other collateral.
These loans represent 0.3 % of the Group’s total loans and advances to customers.
In addition, we hold securities in companies controlled by shareholders’ representatives with a volume of EUR 15 million. The
average remaining term of these securities is 4.4 years, the average interest is 4.4 %.
F-74
Executive Bodies
The following list of members of the Supervisory Board and Board of Managing Directors shows:
a) their membership in other statutory Supervisory Boards; and
b) similar offices held in comparable governing bodies of German and foreign companies.
Supervisory Board
Jörg Asmussen, Berlin
Ministerial Director
German Federal Ministry of Finance
Chairman
Dr. h. c. Ulrich Hartmann, Düsseldorf
Chairman of the Supervisory Board of
E.ON AG
a) Euler Hermes Kreditversicherungs-AG
a) E.ON AG (Chairman)
Münchener Rückversicherungs-Gesellschaft AG
(Chairman)
Deutsche Bank AG
Deutsche Lufthansa AG
Hochtief AG
Dr. Jürgen Behrend, Lippstadt
Managing Partner of
Hella KG Hueck & Co.
a) Leoni AG
b) Henkel KGaA
ARCELOR
Jörg Bickenbach, Düsseldorf
Undersecretary of State in the North-Rhine Westphalia
Ministry of Economics and Labour
Deputy Chairman
Prof. Dr.-Ing. E. h. Hans-Olaf Henkel, Berlin
(until 10 May 2004)
President of the Wissensgemeinschaft
Gottfried Wilhelm Leibniz e.V.
a) Messe Düsseldorf GmbH
b) Gesellschaft für Wirtschaftsförderung mbH
NRW-Japan K.K.
ZENIT GmbH
a) Bayer AG
Continental AG
DaimlerChrysler Aerospace AG
SMS AG
Wolfgang Bouché, Düsseldorf
Employee representative
b) Orange S.A.
Ringier AG
Hermann Franzen, Düsseldorf
Personally Liable Partner of
Porzellanhauses Franzen KG
Deputy Chairman
Hans W. Reich, Frankfurt (Main)
Chairman of the Board of Managing Directors of
Kreditanstalt für Wiederaufbau
a) NOVA Allgemeine Versicherung AG
(Deputy Chairman)
b) BBE-Unternehmensberatung GmbH (Chairman)
IDUNA Vereinigte Lebensversicherung aG
a) Aareal Bank AG
Deutsche Telekom AG
HUK-COBURG Haftpflicht-Unterstützungs-Kasse
kraftfahrender Beamter Deutschlands a. G.
HUK-COBURG-Holding AG
RAG AG
Thyssen Krupp Steel AG
Herbert Hansmeyer, Munich
Former Member of the Board of Managing Directors of
Allianz Aktiengesellschaft
a) Dresdner Bank Lateinamerika AG
b) DePfa Bank plc.
Deutsche Energie-Agentur GmbH
F-75
Dr. Jürgen Heraeus, Hanau
Chairman of the Supervisory Board of
Heraeus Holding GmbH
Rita Röbel, Leipzig
Employee representative
a) Heraeus Holding GmbH (Chairman)
Messer Griesheim GmbH (Chairman)
mg technologies ag (Chairman)
EPCOS AG
Heidelberger Druckmaschinen AG
Dr. Michael Rogowski, Berlin
President of the Federation of
German Industry
b) Argor-Heraeus S.A. (Chairman)
Roswitha Loeffler, Berlin
Employee representative
Wilhelm Lohscheidt, Düsseldorf
Employee representative
Jürgen Metzger, Hamburg
Employee representative
Roland Oetker, Düsseldorf
Managing Partner of
ROI Verwaltungsgesellschaft mbH
a) Mulligan BioCapital AG (Chairman)
Degussa AG
Volkswagen AG
b) Scottish Widows Pan European
Smaller Companies OEIC
Dr. August Oetker-Gruppe
Dr.-Ing. E.h. Eberhard Reuther, Hamburg
Chairman of the Supervisory Board of
Körber Aktiengesellschaft
a) Körber AG (Chairman)
Vereins- und Westbank AG
Randolf Rodenstock, Munich
Managing Partner of
Optische Werke G. Rodenstock KG
a) Rodenstock GmbH (Chairmann)
E.ON Energie AG
a) Voith AG (Chairman)
Deutsche Messe AG
KSB AG
b) European Aeronautic, Defense and Space
Company EADS N.V.
Freudenberg & Co. (Deputy Chairman)
HDI Haftpflichtverband der Deutschen Industrie V.a.G.
Klein Pumpen GmbH
Kreditanstalt für Wiederaufbau
Adolf Würth GmbH & Co. KG
Carl Zeiss AG
Dr. Carola Steingräber, Berlin
Employee representative
Ulrich Wernecke, Düsseldorf
Employee representative
Prof. Dr. h. c. Reinhold Würth, Künzelsau
Chairman of the Advisory Board of the
Würth Gruppe
a) Würth Gruppe (Chairman)
Waldenburger Versicherung AG (Chairman)
b) Robert Bosch Stiftung GmbH
Würth S.r.l. (President)
Würth Danmark A/S
Würth Finance International B. V.
Würth France S. A.
Würth Ltd.
Würth Nederland B. V.
Würth New Zealand Ltd.
Würth Handelsges. m. b. H.
Würth AG
Würth España S. A.
Würth Group of North America Inc.
Würth South Africa Co. (Pty) Ltd.
Würth Canada Ltd.
Würth Otomotiv ve Montaj San. Ürün. Paz. Ltd. St.
Reca Danmark A/S
F-76
Board of Managing Directors
Dr. Markus Guthoff
Dr. Alexander v. Tippelskirch
a) MetaDesign AG
a) Deutsche Gelatine-Fabriken Stoess AG (Chairman)
P-D INTERGLAS TECHNOLOGIES AG (from 1 May 2004)
b) IKB Data GmbH (Chairman, from 1 April 2004)
IKB Private Equity GmbH (Chairman)
ARGANTIS GmbH (from 27 April 2004)
Firmengruppe Poppe & Potthoff
b) IKB Autoleasing GmbH (Chairman)
IKB Leasing GmbH (Chairman)
IKB Leasing Berlin GmbH (Chairman)
IKB Facility-Management GmbH (Chairman)
IKB Capital Corporation (Deputy Chairman)
IKB International S. A. (Deputy Chairman)
IKB Private Equity GmbH (Deputy Chairman)
Johanniter-Krankenhaus Rheinhausen (Chairman)
Hako Holding GmbH & Co.
Hans Martin Wälzholz-Junius Familienstiftung
Kreditanstalt für Wiederaufbau
nobilia-Werke J. Stickling GmbH & Co.
Wirtschaftsförderung Berlin GmbH
Claus Momburg
b) IKB Immobilien Leasing GmbH (Deputy Chairman)
IKB CorporateLab S. A.
IKB International S. A.
Joachim Neupel
b) IKB Immobilien Leasing GmbH (Chairman)
IKB Immobilien Management GmbH (Chairman)
IKB Autoleasing GmbH (Deputy Chairman)
IKB Facility-Management GmbH (Deputy Chairman)
IKB Leasing GmbH (Deputy Chairman)
IKB Leasing Berlin GmbH (Deputy Chairman)
IKB International S. A.
IKB Private Equity GmbH
Offices held by employees
of IKB Deutsche Industriebank AG
Stefan Ortseifen
a) Dura Tufting GmbH
Information within the meaning of section 340a (4) no. 1 of
the HGB
b) IKB International S. A. (Chairman)
IKB Capital Corporation (Chairman until 3 May 2004/
from 4 May 2004 Member of the Board)
IKB CorporateLab S. A. (Deputy Chairman)
DEG – Deutsche Investitions- und
Entwicklungsgesellschaft mbH (Deputy Chairman)
AKA Ausfuhrkredit-Gesellschaft m.b.H.
(until 31 March 2004)
Lohmann GmbH & Co. KG
Rich. Hengstenberg GmbH & Co.
Klaus Reineke
GKD Gebr. Kufferath AG
Frank Schönherr (from 1 April 2004)
b) IKB Capital Corporation (Chairman, from 4 May 2004)
IKB FINANCIERE FRANCE S. A.
(Président Directeur Général)
F-77
Shareholdings within the meaning of sections 285 No. 11/313 (2) of the HGB
Letter
of comfort
Equity
interest
%
x
100
311 4674)
x
x
x
100
100
100
4 000
1 352
47
– 1)
352
10
IKB Grundstücks GmbH & Co.
Objekt Degerloch KG, Düsseldorf
x
100
6 391
–250 5)
IKB Grundstücks GmbH & Co.
Objekt Holzhausen KG, Düsseldorf
x
100
8 549
–45 5)
IKB Grundstücks GmbH & Co.
Objekt Uerdinger Straße KG, Düsseldorf
x
100
8 670
1 663 5)
IKB Grundstücks GmbH & Co.
Objekt Wilhelm-Bötzkes-Straße KG, Düsseldorf
x
100
58 892
1 101 5)
x
x
x
x
x
x
x
100
100
100
100
100
100
100
5 194
30 000
8 000
7
20
70 000
4 881
x
x
x 6)
100
100
100
100
34 495
7 835
73 849
250 0244)
50
10 627
627 3)
100
100
25
100
14 982
569
8 777
4 989
–18
49
4 382 3)
10
100
100
100
100
100
100
472
0
624
1 190
1 055
2 092
38 3)
0
83 3)
–147 3)
–697 3)
–908 3)
A. Consolidated subsidiaries
1. Foreign banks
IKB International S.A., Luxembourg
2. Other German companies
IKB Autoleasing GmbH, Hamburg
IKB Facility-Management GmbH, Düsseldorf
IKB Grundstücks GmbH, Düsseldorf
3.
B.
C.
1.
2.
IKB Immobilien Leasing GmbH, Düsseldorf
IKB Leasing GmbH, Hamburg
IKB Leasing Berlin GmbH, Erkner
IKB Mezzanine GmbH & Co. KG, Düsseldorf
IKB Mezzanine Verwaltungs GmbH, Düsseldorf
IKB Private Equity GmbH, Düsseldorf
AIVG Allgemeine Verwaltungsgesellschaft mbH, Düsseldorf
Other foreign companies
IKB Capital Corporation, New York
IKB Finance B.V., Amsterdam
IKB FINANCIERE FRANCE S.A., Paris
IKB Funding LLC I, Wilmington, Delaware
Associated companies
IKB CorporateLab S. A., Luxembourg
Non-consolidated companies 2)
German companies
IKB Data GmbH, Düsseldorf
IKB Projektentwicklung GmbH, Düsseldorf
Linde Leasing GmbH, Wiesbaden
MORSUS Immobilien GmbH, Düsseldorf
Foreign companies
IKB Finanz Leasing AG, Budapest
IKB Funding Trust I, Wilmington, Delaware
IKB Leasing Hungaria GmbH, Budapest
IKB Leasing Polska GmbH, Poznan
IKB Leasing Tschechien GmbH, Prague
Still Location S. A. R. L., Meaux
1)
2)
3)
There is a profit and loss transfer agreement
Not included in the consolidated financial statements
within the meaning of section 296 (2) of the HGB
Indirect interest
x
x
x
x
x
x
x
x
4)
5)
6)
Shareholders’
equity
Earnings
EUR thousand EUR thousand
2 532
– 1)
– 1)
– 1)
–48 3) 5)
0 3)
– 1)
82
5 149
494
1 161
–3
incl. silent partnership contributions/preferred shares
Section 264 b is used for the company (own Notes are not prepared)
Subordinated declaration of backing
F-78
A full list of our shareholdings, which also includes the names of 351 real estate special purpose entities and their general
partner companies owned by IKB Immobilien Leasing GmbH and 28 companies of IKB Private Equity GmbH, is deposited
with the Commercial Registers of the Local Courts in Düsseldorf (HRB 1130) and Berlin-Charlottenburg (HRB 8860) in line
with section 325 of the HGB in connection with section 287 of the HGB; it can be requested from our offices free of charge.
Düsseldorf, 11 May 2004
IKB Deutsche Industriebank AG
Düsseldorf and Berlin
The Board of Managing Directors
F-79
Auditors’ Report
KPMG Deutsche Treuhand-Gesellschaft Aktiengesell-
The effectiveness of the internal control system rela-
schaft Wirtschaftsprüfungsgesellschaft has confirmed
ting to the accounting system and the evidence sup-
the German annual accounts of IKB Deutsche Indust-
porting the disclosures in the books and records, the
riebank as follows:
annual and consolidated financial statements and
the report on the position of the Company and the
We have audited the annual financial statements,
Group are examined primarily on a test basis within
together with the bookkeeping system, of IKB
the framework of the audit. The audit includes asses-
Deutsche Industriebank Aktiengesellschaft as well as
sing the accounting and consolidation principles used
the consolidated financial statements and its
and significant estimates made by management, as
report on the position of the Company and the Group
well as evaluating the overall presentation of the
prepared by the Company for the business year from
annual and the consolidated financial statements
1 April 2003 to 31 March 2004. The preparation of
and the report on the position of the Company and
these documents in accordance with German
the Group. We believe that our audit provides a rea-
commercial law is the responsibility of the company‘s
sonable basis for our opinion.
management. Our responsibility is to express an
opinion on the annual financial statements, together
Our audit has not led to any reservations.
with the bookkeeping system, as well as on the consolidated financial statements and the report on the
In our opinion, the annual and the consolidated
position of the Company and the Group based on our
financial statements give a true and fair view of the
audit.
net assets, financial position and results of
operations of the Company and the Group, respecti-
We conducted our audit of the annual and consolida-
vely, in accordance with German principles of proper
ted financial statements in accordance with § 317
accounting. On the whole the report on the position
HGB (Handelsgesetzbuch/German Commercial Code)
of the Company and the Group provides a suitable
and the German generally accepted standards for the
understanding of the Company‘s and the Group‘s
audit of financial statements promulgated by the
position and suitably presents the risks of future
German Institut der Wirtschaftsprüfer (IDW). Those
development.
standards require that we plan and perform the audit
such that misstatements materially affecting the presentation of the net assets, financial position and
Düsseldorf, 2 June 2004
results of operations in the annual and the consolidated financial statements in accordance with German
KPMG Deutsche Treuhand-Gesellschaft
principles of proper accounting and in the report on
Aktiengesellschaft
the position of the Company and the Group are
Wirtschaftsprüfungsgesellschaft
detected with reasonable assurance. Knowledge of
the business activities and the economic and legal
Wohlmannstetter
Pukr0pski
environment of the Company and the Group and eva-
German Public Auditor
German Public Auditor
luations of possible misstatements are taken into
account in the determination of audit procedures.
F-80
Consolidated Balance Sheet
of IKB Deutsche Industriebank
as at 30 June 2005
F-81
Consolidated Balance Sheet of
Assets
Loans and receivables to banks
payable on demand
30 June 2005 31 Mar. 2005
Change
in € million in € million in € million
in %
1 892
1 389
503
36
1 096
784
312
40
796
605
191
32
72
77
–5
–6
Loans and receivables
to customers
24 774
24 354
420
2
with agreed term
or period of notice
less than 4 years
3 265
3 132
133
4
4 years or longer
21 509
21 222
287
1
Bonds, notes and other
fixed-income securities
10 916
10 468
448
4
5 013
4 717
296
6
Equities and other
non-fixed income securities
24
23
1
4
Investments, interests
in affiliated companies
86
78
8
10
3
3
0
0
Tangible fixed assets
249
252
–3
–1
Leased assets
947
927
20
2
Deferred items
109
112
–3
–3
Other assets
694
697
–3
0
39 694
38 303
1 391
4
other loans and receivables
of which: 4 years or longer
thereof: securitised
lending business
Intangible assets
Total assets
F-82
IKB Deutsche Industriebank as at 30 June 2005
Liabilities
Liabilities to banks
payable on demand
with agreed term
or period of notice
of which: 4 years or longer
Liabilities to customers
payable on demand
with agreed term
or period of notice
of which: 4 years or longer
Securitised liabilities
Provisions
Subordinated liabilities
Profit-participation certificates
(Genussrechtskapital)
Fund for general bank risks
Capital
Equity
Subscribed capital
Reserves
Consolidated profit
Hybrid capital
Minority interest
Deferred items
30 June 2005 31 Mar. 2005
Change
in € million in € million in € million
in %
12 894
12 088
806
7
879
1 424
–545
–38
12 015
10 664
1 351
13
7 062
2 072
6 898
1 988
164
84
2
4
124
75
49
65
1 948
1 913
35
2
1 791
1 776
15
1
19 417
18 914
503
3
373
367
6
2
1 075
1 165
–90
–8
501
80
593
80
–92
–
–16
–
2 388
2 359
29
1
1 343
1 314
29
2
225
225
–
–
1 019
1 019
0
0
99
70
29
41
1 045
1 045
–
–
0
0
0
0
299
266
33
12
Other liabilities
595
483
112
23
Total liabilities
39 694
38 303
1 391
4
1
1
0
0
Liabilities from
guarantees, etc.
2 818
2 486
332
13
Business volume
42 513
40 790
1 723
4
Endorsement liabilities
F-83
Consolidated Income Statement
of IKB Deutsche Industriebank
1st quarter
Interest income from lending
and money market operations,
fixed-income securities and
debt register claims, income
from leasing transactions
current income from equities,
other non-fixed income
securities and investments 1)
Interest expenses, expenses
and scheduled depreciation
from leasing transactions
Net interest income
Commission income
1 Apr. 2005 – 1 Apr. 2004 –
30 June 2005 30 June 2004
€ million
€ million
Change
€ million
%
1 242.0
1 054.7
187.3
17.8
1.6
2.3
–0.7
–30.4
1 120.1
935.5
184.6
19.7
123.5
121.5
2.0
1.6
27.2
17.9
9.3
52.0
Commission expenses
2.2
3.6
–1.4
–38.9
Net commission income
25.0
14.3
10.7
74.8
0.3
0.8
–0.5
–62.5
31.8
30.2
1.6
5.3
Net result from financial operations
Salaries and wages
Compulsory social security
contributions and expenses for
pensions and employee benefits
Personnel expenses
8.3
7.8
0.5
6.4
40.1
38.0
2.1
5.5
Other administrative expenses 2)
22.0
21.2
0.8
3.8
Administrative expenses
62.1
59.2
2.9
4.9
Other operating income/expenses
Risk provisioning balance
Result from ordinary activities/
Profit before taxes
6.7
2.2
4.5
>100
–48.5
–38.3
10.2
26.6
44.9
41.3
3.6
8.7
Property taxes
0.2
0.7
–0.5
–71.4
Income taxes
15.6
15.7
–0.1
–0.6
Profit after taxes
29.1
24.9
4.2
16.9
Net minority
interest profits (-)
or losses (+)
–
–1.4
1.4
100
29.1
23.5
5.6
23.8
Consolidated profit
1)
includes income from profit pooling agreements,
profit transfer agreements and partial profit transfer agreements
2) includes current depreciation on tangible fixed assets
F-84
F-85
13.2
Personnel expenses
13.2
28.2
11.8
30.2
605
Other operating result*
Risk provisioning balance
Result from ordinary activities
Ø Allocated tier 1 capital
SF
19.0
294
778
20.0
291
877
Return on equity in %
Ø Number of staff
New business volume
170
125
17.9
30.4
5 398
234
10.5
5.3
0.0
2.0
4.9
6.9
22.7
1.9
20.8
168
134
19.7
28.0
5 516
236
11.6
5.9
0.0
2.2
4.6
6.8
24.3
2.5
21.8
757
135
42.1
24.7
4 724
212
22.3
3.6
0.2
2.8
5.7
8.5
34.2
7.7
26.5
529
132
35.5
29.4
4 224
187
16.6
3.3
0.0
3.0
5.3
8.3
28.2
3.1
25.1
PE
1.0
16
39
5.7
54.8
325
70
1.0
0.4
2.2
0.7
1.0
1.7
0.9
–0.1
CL = Corporate Lending; REF = Real Estate Finance; SF = Structured Finance; PE = Private Equity
* incl. net result from financial operations ** incl. corporate bonds/credit linked notes
29.2
29.8
Cost/income ratio in %
15 215 15 429
593
4.8
0.0
4.6
0.0
Other administrative
expenses
12.3
58.5
17.1
59.8
1.7
2.2
17.8
56.8
57.6
Administrative expenses
Loan volume at 30 June**
REF
Leasing
Securitisation
Head Office/
Consolidation
Total
32
38
0.6
>100
294
70
0.1
–0.5
–0.1
0.5
1.0
1.5
1.2
–0.1
1.3
112
92
33.3
48.5
1 139
54
4.5
0.7
0.6
1.8
3.1
4.9
9.5
–0.3
9.8
105
127
57.0
45.9
2 388
54
7.7
0.9
2.9
2.6
4.7
7.3
13.0
–1.2
14.2
770
18
>100
8.0
5 941
19
28.5
1.6
5.9
1.4
1.2
2.6
26.8
13.2
13.6
514
15
11.4
3 725
–78
17.1
1.5
0.0
1.4
1.0
2.4
21.0
9.8
11.2
23
788
872
50
–52.1
25.1
–1.9
8.7
11.0
19.7
–5.4
0.4
–5.8
1 244
44.9
48.5
7.0
22.0
40.1
62.1
148.5
25.0
123.5
1 201
41.3
38.3
3.0
21.2
38.0
59.2
135.8
14.3
121.5
754
–10
2 725
1 488
2 116
1 494
42.7
13.8
39.9
14.4
299 33 614 31 875
139
–40.0
14.0
0.2
6.7
9.1
15.8
–10.4
–1.5
–8.9
1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 – 1 Apr. 05 – 1 Apr. 04 –
30 June 05 30 June 04 30 June 05 30 June 04 30 June 05 30 June 04 30 June 05 30 June 04 30 June 05 30 June 04 30 June 05 30 June 04 30 June 05 30 June 04 30 June 05 30 June 04
CL
Net interest and
commission income
Net commission income
Net interest income
in € million
1st quarter
Segment Report by business division
Changes in consolidated equity/capital
Other Changes
in € million
Balance
Dividends
as at
paid
31 Mar. 2005
Net
income
Other
Balance
consolidated
as at
earnings 30 June 2005
Parent company
Share capital
Hybrid capital
225
225
1 045
–
–
–
1 045
Silent partnership
contributions
570
570
Preferred shares
475
475
Capital reserves
567
567
Consolidated equity
generated
522
Other revenue reserves
29
–
551
3
449
449
Consolidated profit
70
Accumulated other
consolidated earnings
0
Equity
–
3
Legal reserves
–
29
99
0
2 359
–
29
–
2 388
0
0
0
0
0
2 359
0
29
0
2 388
Minority shareholders
Equity
Consolidated Equity/Capital
Cash Flow Statement
in € million
Cash and cash equivalents at 31 March
Cash flow from operating activities
Cash flow from investment activities
Cash flow from financing activities
Cash and cash equivalents at 30 June
F-86
2005
33
196
–11
–183
35
2004
34
–248
16
223
25
Head Office of IKB
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Germany
Issuer
ProPart Funding Limited Partnership
22 Grenville Street
St Helier
Jersey JE4 8PX
Channel Islands
Security Trustee
BNP Paribas Trust Corporation UK Limited
55 Moorgate,
London EC2R 6PA
United Kingdom
Lender
IKB Deutsche Industriebank AG
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Germany
Principal Paying Agent
BNP Paribas Securities Services, Frankfurt am Main Branch
Grneburgweg 14
60322 Frankfurt am Main
Germany
Irish Paying Agent
and
Irish Listing Agent
Luxembourg Paying Agent
and
Luxembourg Listing Agent
NCB Stockbrokers Ltd.
3 George’s Dock
IFSC
Dublin 1
Ireland
BNP Paribas Securities Services
Luxembourg Branch
23 Avenue de la Porte Neuve
L-2085 Luxembourg
Legal Advisors to the Sole Bookrunner and Structuring Advisor
as to German law
Freshfields Bruckhaus Deringer
Taunusanlage 11
60329 Frankfurt am Main
Germany
as to Jersey law
Mourant du Feu & Jeune
22 Grenville Street
St Helier
Jersey JE4 8PX
Channel Islands
93
Legal Advisor to IKB
Legal Department of IKB
Wilhelm-Btzkes-Strasse 1
40474 Dsseldorf
Germany
Auditors to IKB
KPMG Deutsche Treuhand-Gesellschaft
Aktiengesellschaft Wirtschaftsprfungsgesellschaft
Am Bonneshof 35
40474 Dsseldorf
Germany