Corporate

Finance

The SBU Corporate Finance is responsible for client coverage and transaction structuring and execution, with an origination focus on Northwest Europe, as well as Asia for shipping. The SBUs products and services include the full range of advisory, risk management, and debt and equity products. The SBU is managed as a matrix organisation, with client coverage teams and product teams together offering integrated solutions. The Loan and Portfolio Management business unit manages the loan book. The client coverage teams are split into five major sectors: Financial Sponsors; Food, Agriculture and Retail; General Industries; Infrastructure and Real Estate; Transport and Energy. Product teams include acquisition finance, advisory, project and asset finance, corporate lending, distressed asset management / debt restructuring, syndications and secondary loan trading. Our foreign offices in London, Brussels, Singapore and Curacao are an integral part of this SBU.

STRATEGY AND MARKETS
The Corporate Finance strategy is based on the following criteria:

• To be a best in class, client oriented provider of financial services to selected industry sectors
• To offer full product range solutions, combining sector expertise and product excellence
• To achieve growth through value added products, strong client relationships, and replication of cross SBU solutions, all combined with an increased balance sheet velocity.

This strategy positions NIBCapital as an attractive alternative for our clients in selected sectors and/or products, such as the examples below.

OUTLOOK 2005
For 2005 the Corporate Finance SBU is optimistic about a continuation of the increased market activity seen in the second half of 2004, as our clients assess the challenges and opportunities in their sectors. Main targets for further growth are:

The strong increase of operating income by 15% reflects the improved market position of the SBU Corporate Finance in a competitive market. This income growth comes from an almost doubling of noninterest related income, such as transaction fees and other income. Interest income increased 5% to € 138 million, while total allocated economic capital remained almost flat. These developments are in line with our strategy as described above. Income was also lifted by the completion of a number of innovative financial solutions, where we acted as advisor and lead arranger. Furthermore, the strong decrease in credit provisioning attributed to the increase of our operating profit. This is a result of both our strong risk management discipline and the economic circumstances.

TRANSACTION ATHLON
In 2004 Athlon N.V. acquired the remaining 50% to attain full ownership of car lease company Unilease. In June 2004 NIBC acted as Joint Lead Manager in the issue of 1.56 million new ordinary shares.The shares were successfully placed with domestic and non-domestic institutional investors.
One month later, NIBC acted as Mandated Lead Arranger in a € 350 million Syndicated Credit Facility. Finally, in December 2004 NIBC acted as Mandated Lead Arranger in a € 420 million Senior Credit Facility.Through these two transactions the company refinanced itself at more attractive terms and conditions.
These transactions are a good example of how NIBCapital uses product expertise, sector knowledge and capital markets distribution to arrive at the best solutions for its clients.