Investor Presentation October 2021

Hier steht die Titel-Headline2. The State of Hesse as a Guarantor
3. WIBank in Facts
Agenda
State of Hesse
Free State of
Association Trustee for the Regional Savings Banks
Guarantee Funds1
19.0%
Helaba
WIBank – and its Public Promotional and Infrastructure Business - represents one of the three core business units within Helaba. WIBank is an integral part of the established strategic business model (wholesale business, s-group business, private customers and sme business) of Helaba. The annual financial statements of WIBank are fully consolidated in the annual financial statements of Helaba.
1. WIBank at a Glance Basis and Structure of WIBank
1 FIDES Alpha GmbH, represented by DSGV 2 FIDES Beta GmbH, represented by DSGV
• Acts as a dependent in legally but independent in economic and organisational entity, within Helaba.
• Is mandated with the monetary promotional business of the State of Hesse and is a promotional bank according to “Understanding II”, i.e. strict separation of the promotional banking business from the business of Helaba and thus compliant with the state aid guidelines of the EU.
• coverage of the following business units: Public servicing & Modernising, Building & Living, Founding & Growing, Educating & Employing
4© 2021 Wirtschafts- und Infrastrukturbank Hessen, rechtlich unselbstständige Anstalt in der Landesbank Hessen-Thüringen Girozentrale
1. WIBank at a Glance WIBank
• Has a direct statutory guarantee from the State of Hesse:
o explicit, unconditional and irrevocable for all liabilities
o payable upon first demand, thus a default of payment is excluded
o resulting in a risk weight of 0 according to CRR; including all of WIBank’s own issues:
o no capital requirements o exempt from regulatory large exposure limits o LCR status level 1 o gilt-edged security according to sec. 1807(1) no.2 of German Civil Code
• Acts on the basis of competition neutrality and is exempt from tax on earnings.
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• Has identical issuer ratings by Standard & Poor‘s1 (as of October 27, 2021) to the State of Hesse:
o Long-term: “AA+”
o Short-term: “A-1+”
© 2021 Wirtschafts- und Infrastrukturbank Hessen, rechtlich unselbstständige Anstalt in der Landesbank Hessen-Thüringen Girozentrale
1 Source: S&P Research last update as of October 27, 2021: https://www.wibank.de/resource/blob/wibank/314852/2fe0a80e6f427f5e4c456a20d158567c/ratingbericht-standard-and-poor-s-data.pdf
1. WIBank at a Glance Development Programmes of WIBank
• GuW-Hessen Start-ups and Growth
business (KfK) • Hessen microloan • Innovation loan • Hessen-micro crowd • Bank refinancing • Various corona-aid
programs
Educating and Employing
Companies, associations
• Home ownership • Rented property o New constructions o Modernisation o Energy efficiency
(building & renovation) • Urban development • Regional fund for
aircraft noise mitigation
• Agricultural investment
Local authorities and municipal
• Refinancing of banks for investments in public interest projects
• Digital pact schooling • Cellular advancements
• Qualification campaign
Wirtschafts- und Infrastrukturbank (WIBank) Hessen promotes the economy of the State of Hesse with new support options:
Loans and credit facilities
• Hessen-Mikroliquidity: Credit volume 3,000 - 35,000 EUR Term / Fixed interest rate: 7 years fixed with two redemption-free years No standard bank collateral required Monthly repayment
• Liquidity aid for small and medium-sized enterprises: SMEs according to the current EU definition with headquarters in Hesse (< 250
employees, annual revenue max. EUR 50 M.) Credit volume in the range of EUR 5,000 - 500,000 Term / Fixed interest rate: 2 years final maturity or 5 years fixed with two
redemption-free years No standard bank collateral required, but co-financing by the house bank needed
1. WIBank at a Glance Current support measures during the Corona pandemic
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1. WIBank at a Glance Current support measures during the Corona pandemic
Guarantees and subsidies
Working capital loan-facilities, guarantees or investment loans with a guarantee commitment of 2,5 M. to 50 M. EUR.
• § 21 Compensation payments to hospitals due to special burdens caused by the novel coronavirus SARS-CoV-2: Hessenagentur uses a system to determine the compensation claims per hospital
on a weekly basis and reports these to the Hessian Ministry of Social Affairs and Integration (HMSI)
HMSI requests the sum of the compensation claims from the Federal Office for Social Security (BAS) and forwards them to WIBank, which pays them
1. WIBank at a Glance
2. The State of Hesse as a Guarantor
3. WIBank in Facts
Agenda
2. The State of Hesse as a Guarantor Selected Key Figures of the Guarantor
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The economy of the State of Hesse is based on a sound, diversified structure with a focus on the service sector.
Hesse exhibits an above-average standard of living and its industries are significantly intertwined in the global economy
Germany State of Hesse Relation
Land mass in km2 357.578 21.116 5,9% Population in M. (2020) 83,1 6,3 7,6% GDP in EUR bn. (2020) 3.332 281 8,4% GDP per capita (in EUR, 2020) 40.100 44.750 111,6% GDP per employee (in EUR, 2020) 74.400 80.600 108,3% Unemployment rate (in %, 2020) 5,9% 5,4% 91,5%
Quellen: Statistische Landesämter, Bundesagentur für Arbeit, Helaba Volkswirtschaft/Research
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Refinancing Strategy and Refinancing Volume € 8,0 bn. (Gross) in the Budget 2021: The yearly funding allowance: • from the state budget amounts to € 6,0 bn. • an expected call on the special Covid-19 budget of up to € 2,0 bn. (Sondervermögen
with a total size of € 12 bn.; last periode in 2023; its debts are to fully repaid by 31. December 2050)
• The exact timing of fund raising depends on the liquidity and budgetary situation as well as the contemporary capital market environment.
• Main debt currency is EUR Comparison of spreads on the basis of secondary market prices of selective bonds
Bp vs
.M id
w ap
-10 -8 -6 -4 -2 0 2 4 6 8
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2. The State of Hesse as a Guarantor The State of Hesse as an Issuer
State Hesse WI Bank
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2. The State of Hesse as a Guarantor State Budget in the Year 2021
Expected budget revenues in 2021
Budget Volume 2021: 40,2 bn. EUR – 816 M. EUR New Net Borrowing
• Tax income with a total amount of 24,44 bn. EUR a year, the fiscal capacity of the state is 9,9% above the national average.
• Indebtedness included the Sondervermögen with a total amount of 45,45 bn. EUR • Debt per capita is by 6,845 EUR a year
Expected budget expenditures in 2021
2. The State of Hesse as a guarantor
3. WIBank in Facts
Agenda
1 Rounding differences may occur
3. WIBank in Facts Balance Sheet (pursuant to German Commercial Code – HGB1)
Position 31.12.2020 31.12.2019 31.12.2018 Loans and advances to banks 10.594,8 10.101,5 9.292,5 Loans and advances to customers 14.130,3 13.924,0 14.023,0 Bonds and other fixed-income securities 17,3 17,3 27,6
0,9 0,4 0,0 Equity participations 0,3 0,3 0,3 Interests in associated companies 0,1 0,1 0,1 Trust assets 1093,9 819,9 719,6 Intangible Assets 0,0 0,0 0,0 Property 0,5 0,7 0,7 Other Assets 2,4 2,4 0,9 Prepaid Expenses of Issues and Loans 38,6 38,8 40,0 Total assets 25.879,1 24.905,4 24.104,7 Liabilities to banks 16.724,5 16.336,9 16.019,2 Liabilities to customers 2.021,1 1.907,6 1.891,9 Securitised liabilities 3.927,0 3.745,7 3.380,0 Trust liabilities 1.093,9 819,9 719,6 Other liabilities 4,6 3,7 13,2 Deferred Income 20,5 16,4 17,4 Provisions 111,2 102,6 93,7 Present values of the pools of segregated assets/special funds 1.920,0 1.920,0 1.920,0 Funds for general banking risks 0,3 0,3 0,3 Equity 56,0 52,3 49,4 Total liabilities 25.879,1 24.905,4 24.104,7 Contingent liabilitties 35,1 35,5 20,5 Irrevocable loan commitments 2.279,6 2.971,3 3.304,7
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1 Rounding differences may occur
3. WIBank in Facts Profit and Loss (pursuant to German Commercial Code – HGB1)
Position 31.12.2020 31.12.2019 31.12.2018 Net interest income 70,4 64,8 54,8 Income from affiliated companies 0,6 0,6 0,6 Net commission income 45,7 40,2 39,3 Other net operating income 0,8 0,4 0,4 General administrative expense 73,7 72,3 69,4 Depreciation and amortization of intangible assets and property, plant and equipment 0,1 0,1 0,1
Other net operating expense 10,0 10,4 9,6 Provisions for losses on loans and advances and valuation result 15,0 8,8 2,1 Result from ordinary operations 18,7 14,4 13,9 Extraordinary result 0,0 0,0 0,0 Taxes 0,1 0,1 0,1 Net income 18,6 14,3 13,8
Loan portfolio by counterparty risk, total volume EUR 24.8 bn1/2 as of 31 December 2020:
• The largest portion of the loan portfolio is at no immediate risk of default according to CRR Regulation. Total risk weighted assets amount to EUR 1.2 bn.
• All counterparty risks have been assumed by Helaba (against remuneration).
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default according to CRR 89%
Loans from a special fund (revolving fund,
risk is borne by Helaba)
3%
of risk) 8%
1 Total lending volume excluding payment obligations, trust assets and other assets. 2 Rounding differences may occur
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Year Net balance sheet total (EUR)
New business (EUR) Number of employees
2020 25,9 bn. 3,2 bn. 454 2019 24,9 bn. 2,0 bn. 439 2018 24,1 bn. 7,0 bn. 423
Geschäftsumfang_IP S.16_de
New business (EUR)
Number of employees
Infrastruktur Wohnungs- und Städtebau Wirtschaftsförderung Europäischer Strukturfonds Landwirtschaftsförderung 849.06786653999995 444.89133533 270.71159093 126.77020947 350.95981191999999 2018
Infrastruktur Wohnungs- und Städtebau Wirtschaftsförderung Europäischer Strukturfonds Landwirtschaftsförderung 5915.2 375.9 237.5 113.7 331.4
5.915
New business (EUR)
Number of employees
Infrastructure Building and Housing Economic Development Education and Employment Agriculture 849.06786653999995 444.89133533 270.71159093 126.77020947 350.95981191999999 2018
Infrastructure Building and Housing Economic Development Education and Employment Agriculture 5915.2 375.9 237.5 113.7 331.4
amounts in bn
3. WIBank in Facts
Agenda
Liabilities to banks1 / customers and securitised liabilities amounting to EUR 15,1 bn. as of 31. December 2020:
Selected refinancing counterparties: • National:
o Landwirtschaftliche Rentenbank, for investments in rural areas
o NRW.Bank
• International – other development institutions: o Council of Europe Development Bank – CEB o European Investment Bank – EIB
1 Excludes intragroup transactions to neutralise interest rate risks of approx. EUR 7,62 bn.
For 2022 we expect - derived from the planned new lending business - medium and long- term funding requirements of around € 1.3 billion.
4. Funding Review and Outlook
Instruments Global loans with development banks Bearer bonds, promissory notes and registered
bonds (especially private placements)
~ 0,45 bn. € ~ 1,3 bn. € ~ 1,3 bn. €
4. Funding Benchmark Curve
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Wirtschafts- und Infrastrukturbank Hessen (WIBank) has successfully issued five bonds in benchmark format on the capital market since the end of 2012 to date. Due to the long- term nature of the promotional lending business financed, the bonds have a correspondingly longer original maturity of at least seven years.
ISIN AMOUNT TERM COUPON MATURITY
DE000A1R0105 EUR 500 M. 10 years 1,75% 06.12.2022
DE000A1R0139 EUR 650 M. 10 years 1,75% 15.04.2024
DE000A2GSR47 EUR 500 M. 7 years 0,01% 07.05.2027
DE000A2DAF36 EUR 750 M. 10 years 0,875% 14.06.2028
DE000A2DAF77 EUR 500 M. 15 years 1,25% 06.09.2033
3. WIBank in Facts
Agenda
• The promotional mandate formulated in the WIBank Act entails a high level of responsibility. All of WIBank's activities are geared towards the sustainable development of the Bank and the State of Hesse, e.g. in §2 Task, Item 11/13: … promotion of environmental, nature and land protection… advancement of economic issues in culture and education.
• WIBank actively supports the group-wide further development of Helaba's ESG profile - definition of measurable targets for reducing the carbon footprint, implementation of regulatory requirements including classification (EU taxonomy) and risk management.
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• "Sustainability" is a key component of WIBank's business activity. With a lending volume of EUR 19.4 bn, WIBank contributes 9% of Helaba's total portfolio of EUR 215.2 bn and is an essential part of the group's sustainable value chain.
Your added value
Improved interest rates conditions One-stop funding programs from advice to
disbursement Close cooperation with the State of Hesse,
regional cooperation partners, house banks and development banks (e.g. KfW)
Business segments
Sustainable promotion of Hesse with tailor- made funding programs in all business areas
E.g. social rental housing promotion, digitalization, promotion of environmental and climate protection measures (e.g. carbon reduction in SMEs), urban development promotion, development of social infrastructure (e.g. hospitals, schools)
Founding & GrowingPublic servicing & Modernising
Building & Living Educating & Employing
Founding & Growing supports small and medium-sized companies, start-ups and self-employed persons with start-ups, takeovers, investment projects, especially with projects that concern environmental and climate protection; promotes the development of rural areas as well as programs in the promotion of agriculture within the framework of the ecological management of land.
Building & Living promotes the construction or modernization of buildings with energy-saving measures as well as sustainable urban development in order to create ecological added value.
Public servicing & Modernising implementation of measures that strive for a sustainable improvement in the quality of life across generations, e.g. digitilization, research and development.
Educating & Employing measures for training and further education and for reintegration into working life as well as for reducing long-term and youth unemployment.
5. Sustainability WI Bank business areas at a glance
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Solution-oriented
in the financial sectorIntegrated
Helaba manages sustainability via an integrated KPI system in business and risk strategy
Principles-based
5. Sustainability Helaba‘s understanding of sustainability is…
Helaba (WIBank) is committed to the ten principles of the UN Global Compact. Our own mission statement and code of conduct create an orientation framework for all employees.
Helaba (WIBank) Is the pilot bank for the Energy Efficient Mortgage Action Plan (EeMAP) to create incentives for energy efficiency in real estate financing.
Helaba (WIBank) As a member of the ICMA (International Capital Markets Association) supports the creation and development of the Green Bond Principles
Helaba (WIBank) As a platinum sponsor or founding member of the Green and Sustainable Finance Cluster Germany, we formulate sustainable finance approaches for the industry
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• The successful sustainability strategy is reflected in the good ratings.
• C Prime
C C C
2018 2019 2020
Among the top 10% in the peer group of 243 banks Grade B- for partial rating "Social & Governance" Scale from D- to A +
A A A A
2019 2020 2021
In the upper midfield of the comparison group of 192 banks Top score for partial rating "Financing Environmental Impact" Scale from CCC to AAA
19,1 Low Risk
23,5 20,7 19,1
2019 2020 2021
Among the top 10% in the peer group of 407 banks Top score for partial rating "Corporate Governance" Scale from 0 (best) to 100
BB Positive
Among the top 5 of the comparison group of 24 banks Grade BBB (positive) partial rating "Mortgage Pfandbriefe" Scale from D to AAA
B B BB
2018 2019 2020
Treasury (WIBank) Christian Forma Tel: +49 (0)69 9132-4487 E-Mail: [email protected]
Managing Director (WIBank) Dr. Michael Reckhard Tel: +49 (0)69 9132-4086 E-Mail: [email protected]
Wirtschafts- und Infrastrukturbank Hessen Neue Mainzer Straße 52-58 60311 Frankfurt am Main https://www.wibank.de/wibank/investorrelation
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Disclaimer This presentation and the information contained herein was prepared by “Wirtschafts- und Infrastrukturbank Hessen“ (“WIBank“) for information purposes only and uses indicative, non-binding market data and prices.
This presentation is intended exclusively for professionals and eligible counterparties which are located outside of the United States of America.
This presentation does not constitute investment advice and should not be used as a substitute for your own analysis. The information and any opinions contained herein are valid as of the date of this publication and are subject to change without notice.
The compilation of this material is based upon information and processes, which WIBank believes are appropriate and adequate. Whilst every effort has been taken to ensure the accuracy of the material, no guarantee is given nor liability assumed for the information contained herein. Past performance, simulations and forecasts are not reliable indicators of future performance.
WIBank does not offer consulting or advisory services relating to taxation, accounting and legal issues.
This presentation and its contents may not be distributed in any form without the express, prior, and written permission of WIBank.
“For all liabilities of the Wirtschafts- und Infrastrukturbank Hessen, the State of Hesse is liable as guarantor without limitation, to the extent that the satisfaction of the creditors from the assets of the Wirtschafts- und Infrastrukturbank Hessen is not possible (statutory guarantee).”
“The State is directly liable for the loans raised by the Wirtschafts- und Infrastrukturbank Hessen as well as for the bonds issued by the Wirtschafts- und Infrastrukturbank Hessen ….” (refinancing guarantee)
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Statutory Guarantee of the State of Hesse
“The state liability is payable upon first demand. Thus, a timeliness of payment is warranted.“
There is no difference between the payment obligations of WIBank and the State of Hesse.
The requirements of article 116 section 4 CRR for the assessment of receivables from WIBank, which are covered by the statutory guarantee and thus have equal risk status as the State of Hesse, are considered to be fulfilled.
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Investor Presentation October 2021
1. WIBank at a GlanceDevelopment Programmes of WIBank
1. WIBank at a GlanceCurrent support measures during the Corona pandemic
1. WIBank at a GlanceCurrent support measures during the Corona pandemic
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2. The State of Hesse as a GuarantorSelected Key Figures of the Guarantor
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5. SustainabilityHelaba‘s understanding of sustainability is…
5. SustainabililtyHelaba sustainability ratings
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Investor Presentation October 2021

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Transcript of Investor Presentation October 2021