Annual Report 2005 - English version of NRW.BANK Homepage · 2011. 6. 28. · Individual 1)/financial strength2) B/C C-2) –* Outlook stable stable stable * not prepared by Standard

Annual Report 2005

Contents2 Foreword of the Managing BoardIdeas on the Move for North Rhine-Westphalia

6 NRW.BANK’s Ship of Ideas

10 Itinerary

12 Minden – In the Heart of Europe

14 Portrait – Good Business with Granulates

18 Promotion of Start-ups and SMEs

24 Münster – For the Love of the City and Nature

26 Portrait – Clear Water for a Clear Future

30 Infrastructure and Municipal Finance

34 Duisburg – One City for All

36 Portrait – Proud to Be Independent

40 Social Housing Promotion

44 Cologne – It’s All in the Mix!

46 Portrait – New Ideas out of Tradition

50 Individual Promotion

52 Düsseldorf – Diversity through Creativity

54 Capital Markets

ate Governance

Contents2 Foreword of the Managing BoardIdeas on the Move for North Rhine-Westphalia

6 NRW.BANK’s Ship of Ideas

10 Itinerary

12 Minden – In the Heart of Europe

14 Portrait – Good Business with Granulates


24 Münster – For the Love of the City and Nature

26 Portrait – Clear Water for a Clear Future


34 Duisburg – One City for All

36 Portrait – Proud to Be Independent


44 Cologne – It’s All in the Mix!

46 Portrait – New Ideas out of Tradition


52 Düsseldorf – Diversity through Creativity

54 Capital Markets

NRW.BANK – On a Good Course

59 Putting People First – Staff Report

62 The Door to the Customer – Advisory Services

64 Shared Strengths – Internal Services

70 A Visionary Bank Committed to Sustainability

73 Responsibility and Transparency – Public Corporate Governance

74 Report of the Supervisory Board

Annual Accounts

80 Management Report

112 Balance Sheet

116 Profit and Loss Account

118 Notes

143 Glossary

150 Organisation Chart

152 Promotion and Funding Products

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2005

Fitch Moody’s Standard &

Ratings Poor’s

Long-term rating AAA Aa2 AA-

Short-term rating F1+ P-1 A-1+

Individual1)/financial strength2) B/C1) C-2) –*

Outlook stable stable stable

* not prepared by Standard & Poor’s Status: March 20, 2006

2005 2004

€ millions € millions

Promotion of Start-ups and SMEs 932 970

Social Housing Promotion 893 1,021

Infrastructure and Municipal Finance 374 396

Individual Promotion 1,230 1,214

* The Individual Promotion segment was established in 2005. As a result, certain promotion programmes were reallocated.

Promotion Volumes*

2005 2004

€ millions € millions

Total assets 128,115 110,267

Credit volume 129,278 109,270

Certificated liabilities 47,120 49,223

Equity capital pursuant to the German Commercial Code (HGB) 19,342 3,696

Liable capital in accordance with the German Banking Act (KWG*) 3,491 1,400

Net interest income 344 351

Net commission income 14 13

Personnel expenses 92 90

Operating expenses 70 74

Operating profit before risk provisions/result of evaluation 211 205

Operating profit after risk provisions/result of evaluation 157 – 247

Net income/loss for the year 85 – 256

Reduced-interest-grants and subsidies 1 0

Allocation to state housing construction funds 45 55

Profit 38 0

Principle I ratio in %* 25.3 10.4

Staff 1,035 948

* before approval of the annual accounts

Key Figures

Ratings

Annual Report 2005NRW.BANKIdeas on the Move forNorth Rhine-Westphalia

The Managing Board of NRW.BANK (from left): Ernst Gerlach, Dr. Ulrich Schröder, Klaus Neuhaus

2 Foreword of the Managing Board

Have you got a good idea?It could be your first step towards settingup your own business. Or a big steptowards more growth and jobs. You couldenter new markets or expand in existingones. You could become an export cham-pion. Or a world market leader.

The NRW.BANK.Ideenschiff – or Ship ofIdeas – will provide an insight into howideas can change the world. The Ship ofIdeas will travel North Rhine-Westphaliabetween May and September. With thisAnnual Report, we want to take you alongon this exciting boat trip through NorthRhine-Westphalia. The places we will visit are representative of the strength ofchange and innovation between the riversRhine, Ruhr and Weser.

Below deck, the Ship of Ideas houses amultimedia and multi-sensory exhibition,which will give visitors a hands-on impres-sion of “Creativity, Ideas and Innovation inNorth Rhine-Westphalia”. Exhibits includeinnovative milestones from NRW as well as an exploration of the very concept ofcreativity. On deck, numerous events willbe organised which will help to support the implementation of future innovations.Read more on pages 6 to 11.

North Rhine-Westphalia is well placed to compete internationally, but we mustbecome even better. Ideas and innovationsare what fuels growth and prosperity in our federal state. We need to exploit this“fuel” even more effectively.

Last year, we kept our promise, “PromotingIdeas”, by launching a broad-based prod-uct drive in the four business segments ofour Bank.

In the promotion of start-ups and SMEs,we want to achieve three major objectives:

More variable loan sizesNRW.BANK offers loans of different sizes –from microcredit to large tranches. Thefocus will be on the global loans and thenew SME loan, which will be funded fromthe “KfW-Unternehmerkredit” and whoseinterest rate will be further reduced usingfunds of NRW.BANK. A volume of € 1 bil-lion makes the SME loan the largest statepromotion programme for the year 2006.

Reducing the credit risks for relationship banksNRW.BANK will assume further risks, thus contributing to a fair distribution ofburdens between the development bankand the relationship banks. The focus is on syndicated financing arrangements inwhich the Bank participates with amountsbetween € 2 and 15 million and a maxi-mum of 49.9% in SME loans extended bylocal relationship banks.

Increasing companies’ equity ratioNRW.BANK has greatly expanded therange of corporate equity solutions infinancing and consulting. The Seed Fund,the Venture Fund and the SME Fund make a total amount of € 145 million available to businesses in North Rhine-Westphalia – from the start-up phase to successor management.

Our range of advisory solutions has beenrounded off by the takeover of the activitiesof WIN Wagniskapital für InnovationenNRW GmbH. In the context of early phasefinancings, WIN advises and assists com-pany founders in their search for capital.The focus is on raising private equity frombusiness angels.

Foreword of the Managing Board

3

NRW.BANK’s social housing promotionarm, Wohnungsbauförderungsanstalt(Wfa), remains an important instrument of housing construction policy in NorthRhine-Westphalia. The proven instrumentsfor residential housing construction andowner-occupied housing allowed us tomake affordable housing available to manypeople in North Rhine-Westphalia last year. There was also strong demand for the new promotion products for housingsolutions for the elderly and nursinghomes. Another focus of our housing pro-motion activities is on sustainable con-struction. Last year, Wfa made additionalfunds available for investments in the exist-ing housing stock.

In the area of infrastructure and municipalfinance, NRW.BANK is a reliable andcompetent partner to local authorities and municipal facilities in North Rhine-Westphalia. The “WM Global Loan”, forinstance, is a customised solution devel-oped by the Bank specifically for thosecities in North Rhine-Westphalia in whichthe Soccer World Cup matches will be held – a kick-off for the expansion of urbaninfrastructure.

The “Tuition Fee Loan” marks the entry of our Individual Promotion unit in theeducation finance sector. The Bank offersstudents a loan that meets the legalrequirements for the socially compatibleintroduction of tuition fees in North Rhine-

Westphalia – without credit investigationand the need to provide collateral.NRW.BANK transfers the money directly to the universities, thus making an impor-tant contribution to improving educationand research in our federal state.

The Bank fulfils its social responsibilitythrough the Public Corporate GovernanceCode. As a development bank under public law, we are obliged to do businessin a responsible and sustainable manner.NRW.BANK therefore was one of the firstpublic companies in Germany to endorseindividual regulations based on the GermanCorporate Governance Code and the Codeof Honour of the German Bundesbank with effect from January 1, 2006. Theseprinciples make the Bank’s actions trans-parent and comprehensible to the capitalmarket and the general public.

At the end of last year, the Chairman ofNRW.BANK’s Managing Board, Dr. BerndLüthje, resigned from his office as sched-uled and contractually agreed. In Septem-ber 2005, the owners had already appoint-ed Dr. Ulrich Schröder as his successor. He has been a member of the ManagingBoard since the Bank’s inception in 2002.

4 Foreword of the Managing Board

We were equally pleased that the Super-visory Board appointed Klaus Neuhaus new member of the Managing Board. Hejoined the three-strong body with effectfrom January 1, 2006. In his capacity asBack Office Director, he is in charge of riskmanagement. Ernst Gerlach’s responsibili-ties have been expanded to include theentire promotion and development activi-ties of the Bank.

Late 2005 also saw a change on the Supervisory Board and the Guarantors’Meeting, whose chairmanship was takenover by Christa Thoben, North Rhine-Westphalian Minister of the Economy,SMEs and Energy, with effect from January 1, 2006. She has succeeded UdoMolsberger, Director of the RegionalAssociation of the Rhineland, whom we would like to thank for his committedwork.

We will develop additional promotion prod-ucts to support growing industries in NorthRhine-Westphalia and provide businesseswith effective support in important phases

of their development, especially the start-up and growth phase. By doing so, wewant to push ahead structural change inour federal state.

The effectiveness of our instruments will be examined closely with the help of adetailed promotion controlling system. Theresults of this controlling process will beused to refine our products and the clientadvisory services provided by our Bank.This will, in turn, allow politicians to close-ly monitor and control the effectiveness oftheir economic and infrastructure policies.

There is a sense of new beginnings in ourfederal state that is giving people freshcourage. Because to use new opportunities,you need not only the creativity for lateralthinking. You must also be ready to venturesomething new and to take risks to achieveit. We help you shoulder these risks.

Have you got a good idea? Then take it to NRW.BANK.

The Managing Board of NRW.BANK

5

Ernst Gerlach Klaus NeuhausDr. Ulrich SchröderChairman

“Nothing is stronger than an idea whosetime has come.” This saying by Frenchpoet Victor Hugo is especially true forNorth Rhine-Westphalia, as this federalstate has been the home of famous inven-tors and researchers for over one hundredyears.

Innovation has a Tradition in NRWWilhelm Conrad Röntgen from Remscheid-Lennep discovered the X-rays that werelater named after him. In Elberfeld andBarmen, which today form the city ofWuppertal, the local government solved the traffic problem by building the uniquesuspension railway almost 120 years ago.North Rhine-Westphalia is the cradle ofAspirin tablets, Knirps pocket umbrellas,jellybeans and Phillips screws. Global cor-porations such as Bertelsmann and Bayer,

Deutsche Post and Deutsche Telekom,Henkel, E.ON and RWE are headquarteredhere. Artists from Germany’s most heavilypopulated federal state have clearly influ-enced the international scene, e.g. theband Kraftwerk from Düsseldorf, the pio-neers of electronic pop music, or PinaBausch, whose Wuppertal dance companyhas transformed contemporary dance andtheatre.

North Rhine-Westphalia is also Europe’sleading economic region in terms of eco-nomic performance and foreign trade. At€ 487.5 billion, the federal state reportedthe highest gross domestic product of allGerman federal states in 2005. Over thepast years, the ideas that were born herehave pushed ahead structural change andincreased North Rhine-Westphalia’s socialand cultural attractiveness even further.People from all over the world live herepeacefully and with the will to learn fromeach other.

Full Speed Ahead! Ideas and Innovationsfor NRW

6 Ship of Ideas

NRW.BANK Launches “Ideas Initiative”As a modern development bank andleading partner to the corporate sector and the people in North Rhine-Westphalia,NRW.BANK is committed to encouraginginnovation with a view to supporting eco-nomic growth. The state development bank has set the course for a fresh startand launched the so-called “Ideas Initia-tive” which seeks to encourage people,companies and local authorities to embracea new “ideas culture”. The Initiative, whichwill be under the patronage of Dr. JürgenRüttgers, Prime Minister of North Rhine-Westphalia, is designed to help, in particu-lar, small and medium-sized businesses,business start-ups and local authorities toidentify creative potential and will provideinformation on the origination of ideas,their importance for everyday life and thefederal state. After all, a positive climate for ideas will also create the right atmos-phere for investments.

One of the three central elements of theIdeas Initiative is the “Ideas Contest”,which was launched on the websitewww.wirfoerdernideen.de in December2005. This platform allows local authoritiesin NRW to present and compare theirideas. Representatives from the political,corporate, research and media communi-ties will assess the projects entered basedon criteria such as their degree of innova-tion, their exemplary nature and their sus-tainability. The jury is led by Dr. Ingo Wolf,Minister of the Interior of North Rhine-Westphalia, who is also the patron of the contest. The contest will run until theend of April 2006. This way, NRW.BANK is making an important contributiontowards raising awareness for and promot-ing the diversity of municipal innovations.

7

NRW.BANK additionally offers a creativity test. This online “ideas check”has been specifically developed forwww.wirfoerdernideen.de. It is based onthe latest findings of creativity researchand invites the citizens of North Rhine-Westphalia to learn more about their indi-vidual innovative potential in a playfulmanner. The interactive test allows users to find out in which areas of creative think-ing they are particularly strong and howthey can take maximum advantage of theirskills and abilities. The test is rounded offby useful information on aspects such asimaginativeness and “thought blockades”.

NRW.BANK.Ideenschiff: Exhibition, Event and ExchangeThe heart of the Ideas Initiative is the“NRW.BANK.Ideenschiff” – or Ship ofIdeas – which will travel North Rhine-West-phalia from mid-May to mid-September2006. The freight ship and the water – animportant transport route – call to mind the era of the mining industry and, hence,North Rhine-Westphalia’s industrial hey-day. The ship has been converted into anultramodern exhibition space and venue to make it a symbol of innovation andprogress. Every day, up to 1,000 people can visit the exhibition entitled “Creativity,Ideas and Innovation”. Multimedia installa-tions – some of them interactive – will bedisplayed on 300 square metres, dividedinto three areas: Ideas in Everyday Life –Ideas in Science – Ideas in North Rhine-Westphalia. This way, the NRW.BANK’sShip of Ideas will answer many questionsabout innovation: What is the differencebetween an idea and an innovation? Howare innovations born? How do they influ-ence our everyday life?

8 Ship of Ideas

During the four-month trip, informationand specialist events, panel discussionsand seminars for clients and partners ofNRW.BANK and for the general public willadditionally be offered on board the Ship of Ideas. The prize ceremony for the win-ners of the Ideas Contest will also be heldon board the ship.

A Diverse Display of SuccessfulInnovationOn its trip through the “state of ideas”, the ship will call in nine cities: Düsseldorf,Minden, Münster, Dortmund, Gelsen-kirchen, Duisburg, Oberhausen, Bonn andCologne. In and around four of these cities,projects supported by NRW.BANK havebeen put into practice. They include thesuccessful succession at Westfalia Kunst-stoffe GmbH & Co. KG in Minden, the con-

struction of the old people’s home inDuisburg’s Philosophenweg, the farm of Max Kallen near Cologne and the mod-ernisation and extension of the sewageworks in Saerbeck near Münster. They areexemplary of NRW.BANK’s diverse andsuccessful activities in North Rhine-West-phalia. Accompany us on a trip throughNorth Rhine-Westphalia and read moreabout the people who live here and theirdedicated efforts.

9

DüsseldorfSchlossuferMay 15 to 17, 2006

SchlossuferJuly 4 to 17, 2006

SchlossuferSeptember 6 to 12, 2006

DuisburgInnenhafenJuly 20 to 26, 2006

OberhausenMarina am CentrOJuly 29, to August 11, 2006

Gelsen- kirchenAm StadthafenJune 25 to July 1, 2006

CologneAm LeystapelAugust 22 toSeptember 4, 2006

BonnBrassertuferAugust 14 to 20, 2006

Where do flashes of inspiration come from?Can creativity be learned? What innova-tions from North Rhine-Westphalia havechanged our everyday lives? These andmany other questions will be answered by the “Creativity, Ideas and Innovations”exhibition, which will tour the federal state for four and a half months on boardNRW.BANK’s Ship of Ideas.

Multimedia installations and interactiveexhibits on a total of 300 square metreswill introduce visitors to the world of ideas and bring about an atmosphere of creativity. Numerous events, paneldiscussions and seminars – for both thegeneral public and clients and partners of NRW.BANK – will complement the pro-gramme of NRW.BANK’s Ship of Ideas.

The Ship of Ideas will take NRW.BANK’sIdeas Initiative direct to the people inNorth Rhine-Westphalia. It will stop inDüsseldorf, Minden, Münster, Dortmund,Gelsenkirchen, Duisburg, Oberhausen,Bonn and Cologne.

www.wirfoerdernideen.de

10 Itinerary

Experiencing Ideas

MünsterStadthafenMay 30 to June 12, 2006

DortmundAltes HafenamtJune 16 to 22, 2006

MindenVorhafenSchachtschleuseMay 21 to 27, 2006

11

MindenMay 21 to 27, 2006, Vorhafen Schachtschleuse

12 Minden

In the Heart of EuropeHalf-timbered houses, an impressive cathe-dral, narrow lanes – Minden has a proudhistory of 1,200 years as well as goodprospects for the future, being situatedright in the heart of Europe. This is wherethe Mittelland Canal meets the River Weserand the motorways to Berlin and to theNetherlands are within easy reach – thecity is in a central location on the majorEuropean traffic routes.

Good connections mean good business.This is also proven by Westfalia Kunst-stoffe GmbH & Co. KG, a successful inter-national player benefiting from support by NRW.BANK.

13

Securing the future with strong yarns.This has been achievedby an entrepreneur in Minden.


Resistant, environmentallysound and suitable formultiple uses – materialsmade from polyethyleneand polypropylene.

Good Business with GranulatesYarns, belts and fabrics – products madefrom polypropylene are delivered to cus-tomers in half of Europe by Minden-basedWestfalia Kunststoffe GmbH & Co. KG,which has secured itself a solid position in the market.

At first sight, the small, round and shinywhite grains look like rice. And they almostfeel like rice. But we’re talking of granulatemade from polypropylene – a syntheticmaterial that stands out for its hardness,heat resistance and environmental com-patibility. The products made from thismaterial are as varied as polypropylene’spositive characteristics – from toys tohousehold appliances to automotive spareparts.

Yarns, belts and fabrics can also be madefrom polypropylene – and this is whatWestfalia Kunststoffe GmbH & Co. KGdoes. Employing 14 people, the company is a fast and reliable supplier to over120 regular customers. Managing PartnerThomas Horstmann takes pride in his well-trained staff, who allow him to respondhighly effectively to changing marketconditions and to low-cost competitionfrom the east. Under a collaborativeapproach, he develops strategies jointlywith his employees that allow the companyto remain competitive.

Why did he take over the company in early 2005 despite the fierce competition?“It had long been my wish to work inde-pendently,” he explains. However, ThomasHorstmann had hardly any capital to buyWestfalia. A solution was found by hisrelationship bank (Dresdner Bank) incooperation with NRW.BANK. In additionto the loan extended by Dresdner Bank and the KfW loan from the equity assist-ance programme and the ERP start-uploan, NRW.BANK granted a developmentloan from the Start-up and Growth FinanceNRW programme to strengthen the compa-ny’s equity capital. This financing planallowed the new successor to take over.

After the smooth start, Thomas Horstmannis now thinking about modernising hisequipment – slowly and carefully. “Mod-ernisation only makes sense where it isrequired for reasons of efficiency and qual-ity,” he says. This is why he has bought a new machine for quality control – a tear-ing machine, which tests the resistance of the yarn, at what points it might tear and when the stress is so high that it willtear. Says Thomas Horstmann: “Qualitytakes top priority for our company.”

“We produce in all desiredcolours and shapes fromquantities as small as one ton,” says ThomasHorstmann, ManagingPartner of Westfalia. “Dueto our relatively small sizeand our great flexibility, we can assist our cus-tomers quickly in case ofsupply bottlenecks.” Thiscommitment and this flexi-bility are very much appre-ciated by many loyal cus-tomers in Germany andanother ten EU countries.


Smart technology and the right temperature turnwhite granulate into blueyarn.

NRW.BANK offers new business start-upsas well as small and medium-sized compa-nies in North Rhine-Westphalia a widerange of public funding products and cus-tomised equity finance solutions, whichoften make a critical contribution to thefinancing of business projects. The aim of NRW.BANK is to further improve thefinancial situation of this target group inline with their actual requirements. In2005, the Bank therefore launched a prod-uct initiative, which focuses on three keytasks: more variable loan sizes, reducingthe credit risks for relationship banks andeffective support for increasing companies’equity ratios.

NRW.BANK as a Development PlatformAs a central development platform,NRW.BANK processes North Rhine-West-phalia’s main development and promotionproducts channelled through banks andsavings banks. For this purpose, the Bank cooperates with all bank groups on a competition-neutral basis. Moreover,NRW.BANK handles the federal pro-grammes of KfW Bankengruppe for thesavings banks in North Rhine-Westphaliaand Brandenburg. The state and federalprogrammes include general economicdevelopment programmes for start-ups and SMEs as well as special programmesfor environmental protection, technology/innovations and regions. In addition,NRW.BANK performs management andadvisory tasks for individual projects onbehalf of the State of North-Rhine West-phalia.

Upward Trend in Start-up ProgrammesIn 2005, new business was again markedby moderate economic activity. At € 932.1million, the commitment volume was down4% on the previous year. The number ofcommitments declined by 12% to 5,712.

By contrast, there was strong demand forthe subordinated loan from the Start-upand Growth Finance NRW programme(€ 21.2 million, +297%), which is also usedto finance company takeovers. The KfWMicroloan, which has been specificallydesigned for company founders, alsodeveloped positively (€ 6.5 million, +16%).Demand was also strong for the “KfW-Startgeld” product, which is mainly target-ed at business start-ups and supported860 start-up projects with total funds of€ 28.4 million.

At € 515.6 million, the “KfW-Unternehmer-kredit” loan again achieved the highestcommitment volume in the SME promotionsegment. The “NRW.BANK.Mittelstands-kredit” loan, which was launched onDecember 1, 2005 as part of the Bank’sproduct initiative, also made an importantcontribution.


Promotion of Start-ups and SMEs

NRW.BANK’s SME Loan Has HighestVolume of All State PromotionProgrammesLaunched in December 2005, NRW.BANK’sSME Loan closed a gap in the North Rhine-Westphalian promotion and funding sys-tem. Flexible promotion loans with reducedinterest rates are designed to facilitatebusiness start-ups and investments inGermany’s most heavily populated federalstate. The SME Loan may be used for vari-ous purposes. Start-ups and SMEs can useit to finance investments, working capitalrequirements or company acquisitions.Accordingly, the loan amounts are variablebetween € 25,000 and € 5 million. Devel-opment funds totalling roughly € 1 billionhave been made available for the year 2006alone. Applications must be filed throughthe prospective borrower’s relationshipbank.

To keep the interest rate low, NRW.BANKuses the “KfW-Unternehmerkredit” loan as a low-cost funding base and additionallysubsidises the SME Loan from its ownfunds. This way, the Bank reduces theinterest rate for the end user clearly belowthe market price level, especially for start-up projects. Thanks to the extremelyfavourable pricing, NRW.BANK’s SME Loan creates additional incentives forinvestments in North Rhine-Westphalia,making an important contribution to highergrowth and employment.

In the first month after the product launch,NRW.BANK already committed € 40.6 mil-lion for 115 projects, over 10% of whichwere new business start-ups.

Global Loans for Low-cost FundingNRW.BANK’s new global loans offer rela-tionship banks customised financing forSME loans. The terms are attractive asNRW.BANK uses favourable funding possi-bilities and passes these advantages on to the market in full. Banks and savingsbanks can pass the low-interest funds on to small and medium-sized companies with risk-oriented interest markups. Thetarget group for global loans includes com-mercial companies that are mostly privatelyowned and whose consolidated sales donot exceed € 500 million as well as mem-bers of the liberal professions. The globalloans may be used for various purposes,e.g. to finance medium and long-terminvestments, from inventories and stocks to machinery and equipment. These flexi-ble loans are also available for short terms,which the promotion programmes hadpreviously covered only insufficiently. The application process is simple to reducethe efforts for the relationship banks andthe borrowers to a minimum. Contracts for tranches up to € 500,000 may even beclosed by phone.

19

NRW.BANK offers two types of global loan.The “Kleiner Mittelstand” global loanlaunched in December 2004 provides theNorth Rhine-Westphalian savings bankswith low-interest loans of up to € 125,000for small and medium-sized businesses.Larger loan amounts may be granted tocompanies generating sales of up to € 2million. As the central development institu-tion of the savings banks, NRW.BANKdeveloped the “Kleiner Mittelstand” globalloan in cooperation with KfW Banken-gruppe and Deutscher Sparkassen- undGiroverband.

The “Mittelstand” global loan waslaunched in May 2005 and makes loans of between € 125,000 and € 5 millionavailable to all bank groups. These flexible,low-interest loans are also refinanced withfunds provided by KfW Bankengruppe.

NRW.BANK’s new KfW-funded global loanshave been very well accepted; since theproduct launches in December 2004 andMay 2005, these loans have financed462 projects worth over € 52.4 million.

Syndicate loans reducing the burdens for the relationship banksIn the second half of the year, NRW.BANKadded syndicate finance to its productrange. In the context of syndicate loans,the Bank supports banks and savings banks in financing small and medium-sizedbusinesses. Given that the risk of a syndi-cate loan is spread over the lenders,NRW.BANK thus helps reduce the pressureon relationship banks’ equity resources.

NRW.BANK underwrites loan amountsbetween € 2 and 15 million. The Bank actsas a minority partner with a maximumshare of 49.9% for periods between threeand ten years. The syndicate participationis by way of loans or guarantees, which are usually disclosed to the borrower.When granting a loan, NRW.BANK adoptsthe terms and conditions of the relationshipbank. Its share in the collateral is equiva-lent to its share in the loan. NRW.BANKacts solely upon request from the relation-ship banks. In 2005, the Bank approved the first two applications with a volume of€ 19 million.

Employee Equity ParticipationThe “Employee Equity Participation” pro-ject office was installed at NRW.BANK in 2001. Its task consisted in increasing the visibility of this financing instrumentthrough information events, advisory andcoordination services. In 2004, the thenMinistry of Labour and Economics of theState of North Rhine-Westphalia entrustedthe Bank with a 2-year follow-up project onemployee equity participation, in the con-text of which the instrument was refined.


Acquiring a share in their company’s capi-tal can increase employees’ motivation and cost-awareness. Employee equity par-ticipation can also help to ease the mid-market’s (equity) financing problems. The project ended with effect from Decem-ber 31, 2005. The State of North Rhine-Westphalia and NRW.BANK are currentlyexamining whether the project will be con-tinued.

Transfer of State Programmes Has StartedIn April 2004, the then Cabinet of NorthRhine-Westphalia unanimously decided tobuild NRW.BANK into the federal state’scentral development and promotion plat-form. This objective was confirmed by thenew North Rhine-Westphalian governmentin the coalition agreement of July 2005. For this purpose, major state developmentprogrammes will be pooled at NRW.BANK.As a first step, the state development funds of the Technology and InnovationProgramme NRW (TIP) were transferred to the Bank in early July 2005. The aim of the programme is to develop dynamic, fast-growing technologies and innovationsfor North Rhine-Westphalia. TIP funds are mainly used to cover expenses forR&D, studies, investments in product andprocess innovations, technological infra-structures and technology initiatives incommercial and infrastructure projects.This means that NRW.BANK now adminis-ters a central instrument of North Rhine-Westphalia’s technology policy.

Strengthening EquityOne of NRW.BANK’s objectives is tostrengthen the North Rhine-Westphalianequity investment market and fill any exist-ing gaps. Demand for equity capital hasgrown substantially in recent years, espe-cially from small and medium-sized busi-nesses as well as young growth companies.The Bank therefore expanded its range ofequity financing solutions in the fiscal year.These include the NRW.BANK.SME Fundand the new NRW.BANK.Venture Fund and NRW.BANK.Seed Fund. These equityproducts are designed to provide exactlythe right form of financing for the differentphases of a company’s lifecycle.

Growth for the Mid-marketThe € 75 million NRW.BANK.SME Fund istargeted at small and medium-sized growthcompanies in North Rhine-Westphalia. TheBank makes equity investments between€ 1 and 7 million, which may be used, forinstance, to make inroads into new mar-kets, to expand the sales organisation, toexpand production or to fund successions.The capital is made available in the form of direct minority investments or mezza-nine financing solutions, which means that the companies remain largely inde-pendent. In 2005, the SME Fund investedin Bacher GmbH & Co. KG, a chain ofhealth product stores, in Ennepetal-basedPAKI Logistics GmbH and in SchnöringGmbH, Schalksmühle, a metal processingcompany.

21

To complement the SME Fund, NRW.BANKalso develops and implements innovativecustomised equity solutions for the NorthRhine-Westphalian mid-market.

Financing for Young CompaniesLaunched in 2005, the NRW.BANK.VentureFund is a new financing solution for young,innovative companies. The Fund invests upto € 40 million in new technologies in dif-ferent sectors such as information andcommunications, life science, optics andmaterials. The capital is made available inthe form of equity investments or mezza-nine solutions, with amounts ranging from€ 0.5 to € 1.5 million, depending on thefunding round. The maximum investmentafter several funding rounds is € 3 million.NRW.BANK exclusively makes minorityinvestments in companies that have alreadycompleted a first venture capital round. In 2005, the Venture Fund invested inAplaGen GmbH, a young biotech companyfrom Baesweiler.

Strengthening Business Start-upsThroughout Germany, the number of newbusiness start-ups in the technology sectorhas declined strongly. One of the reasons is the growing lack of capital in the smallersegments. NRW.BANK’s € 30 million SeedFund supports the foundation of technolo-gy-oriented companies in North Rhine-Westphalia. The Seed Fund contributes up to 50% to regional seed funds; themaximum investment in a company is€ 500,000. The capital is made available on a long-term basis. Overall, NRW.BANKcan support up to 120 start-ups in thecoming years.

OutlookNRW.BANK will continue to complement,expand and improve the range of develop-ment products especially for start-ups aswell as small and medium-sized companiesin close cooperation with the State of NorthRhine-Westphalia. In the course of 2006,for instance, the Bank plans to launch aGraduate Start-up Fund, which will provideequity-strengthening subordinated loansfor off-campus start-ups in the so-calledZiel-2 areas.

With a view to strengthening North Rhine-Westphalia as a place for innovation, therange of innovation promotion instrumentswill be expanded and restructured with anincreasing focus on repayable loans. Apartfrom the broad-based loan programmes,NRW.BANK is currently developing solu-tions to special problems such as releasesfrom liability and guarantees for film andTV productions as well as back-to-backguarantees in the foreign trade sector.


Moreover, the Bank and the North Rhine-Westphalian Ministry of Economics, SMEsand Energy will review the possibility oftransferring additional economic develop-ment programmes to NRW.BANK. Theportion of the TIP programme that is co-funded from infrastructure funds will be transferred in 2007. Up to that date, that part of the programme will continue to be handled by the project sponsor,Forschungszentrum Jülich.

NRW.BANK has also created a new solu-tion for the provision of venture capital.With effect from January 1, 2006, the Banktook over the activities of WIN Wagnis-kapital für Innovationen NRW to strengthenits range of advisory services for early-phase financing. Formerly a wholly-ownedsubsidiary of Börse Düsseldorf AG, WINintroduces young companies in need ofcapital to venture capital providers andbusiness angels. WIN also advises compa-nies on drafting business plans and strate-gies. Going forward, WIN is to be built intothe central platform that brings togetherbusiness angels and young companies inNorth Rhine-Westphalia.

23

MünsterMay 30 to June 12, 2006, Stadthafen

Münster24

For the Love of the City and NatureThe people of Münster like to call their city the “gem of Westphalia”, because theyfeel at home and at ease in their city. Theuniversity and its large student body giveMünster a young flair and have made thecity well known for environmental aware-ness and progressive thinking. Economicsuccess and sustainability go hand in handin the Münsterland region. This is also evi-dent in the community of Saerbeck, whichhas recently modernised and extended itssewage works to ensure it is ready for thefuture. This investment was supported byNRW.BANK.

25

Clean Water.For the Community of Saerbeck, it’s anInvestment in Progressand Nature.

After it has been treated, thewater leaves the sewage worksin almost perfect quality.


Clear Water for a Clear FutureTo secure growth in the long term, youneed the right infrastructure. This is whythe community of Saerbeck in the Münster-land region decided to modernise andextend its sewage works – thus making a sustainable investment in the future.

The day when Saerbeck receivedNRW.BANK’s funding approval for themodernisation and extension of its sewageworks was a special day for Mayor Wilfried Roos. The approval was positivenot only because the money was urgentlyneeded but also because it was a clearproof of the community’s growth – and its prospering economy.

Back in 1975, Saerbeck was still thesmallest independent community in NorthRhine-Westphalia. When it was decided,that same year, to reorganise the munici-palities and communities, it was made acondition for the village to increase itspopulation (3,900 at the time) to avoidbeing incorporated into a larger munici-pality. Another challenge was the budgetdeficit which the village had posted foryears and which required regular restruc-turing aid from the North Rhine-West-phalian government.

Mayor Roos and his predecessors usedthese funds to fuel population growth andencourage new companies to set up shopin Saerbeck. This way they managed to pull the community out of the red. “Ourbudget has been balanced for several yearsnow,” says Mayor Roos. “7,000 people livein Saerbeck today. And some 600 new jobs have been created in the past tenyears alone.” The extension of the Saer-beck sewage works came in response tothis growth.

The investment volume for the modernisa-tion of the sewage works built in 1988amounted to almost € 1.4 million; half of this amount comes from NRW.BANK’sinfrastructure and municipal finance pro-gramme. “Initiative WasserwirtschaftKommunal” was the name of the promotionprogramme with the help of whichNRW.BANK and the North Rhine-West-phalian Environment Ministry ensure thatthe communities fulfil their infrastructurerequirements. The other half of the fundswas raised in the capital market.

The funds injected by NRW.BANK not onlyallow Saerbeck to increase the capacity ofits sewage works but also to meet the morestringent purification requirements that will be imposed by the federal state witheffect from January 1, 2007. From this dateonwards, the phosphate content per 1 litreof water must not exceed 1 millilitre. The present limit is 2 millilitres. To meet

To the people of Saerbeck,the extension of theirsewage works means amajor boost for theirvillage. Following theextension, the water of upto 8,000 people can betreated here, with a maxi-mum contamination of1 mg of phosphate per litre.

Previous page (from left):Mayor Wilfried Roos,Sewage Master MartinBerkemeier and GuidoAttermeier, the Head of the Building AdministrationOffice.


the new requirements, Saerbeck has pur-chased a new strainer rack and a newthickening machine for the sewage sludge.“A second aeration tank and a new finalsedimentation tank support the biologicalpurification process,” explains SewageMaster Martin Berkemeier. He and MayorRoos are convinced that these investmentswill enable the sewage works to meet thenew requirements. “If nothing unexpectedhappens, the extension and modernisationwill be completed in May 2006,” they say.

This consistent modernisation policy wasimplemented against the background of a wise old saying that is still true today:“Being cheap is expensive.” What thatmeans for Saerbeck? “Old buildings causemuch higher costs. Investments in new,modern buildings will pay off automatical-ly,” explains Wilfried Roos. This is why the community has not chosen any provi-sional, makeshift solutions, because, asMayor Roos puts it, “We want sustainabili-ty in all aspects.”

After the modernisationand extension, theSaerbeck sewage works is ready for the future.

29

NRW.BANK supports the North Rhine-Westphalian communities and municipalinstitutions in the implementation of infra-structure measures. Due to the tight budg-et situation, the public sector’s fundingrequirements are currently especially high.Lending expertise in combination withlong-standing experience in promotion andfunding is therefore becoming increasinglyimportant in this sector. NRW.BANK’scomprehensive portfolio of promotion andfunding products makes the Bank a reliableand competent partner to the public sector.These products include business-relatedinfrastructure programmes as well as envi-ronmental, urban development, educationaland social initiatives.

Budget Situation of Local AuthoritiesIn 2005, the local authorities generatedhigher revenues from trade tax and theirshare in value added tax. At the same time, their social benefit expenditureincreased, not least due to the introductionof the Hartz IV labour market reforms. In response to this, the local authoritiesfurther reduced their capital expenditureand avoided new debt. It was remarkablethat the state-wide accounts show no netcapex borrowing in the first half of 2005.By contrast, short-term lendings raised by the local authorities reached a newrecord level, which means that the struc-tural budget problems of the local authori-ties remained unsolved in 2005.

Increase in funding commitmentsWhile local authorities’ spending propen-sity remained moderate in 2005, numerousinvestment initiatives could no longer be postponed. This was also reflected inNRW.BANK’s infrastructure promotionactivities. The trend towards smaller in-vestment volumes and a rising number of applications continued. As a result, thecommitment volume declined by 5% to€ 374.1 million, while the number of com-mitments rose by 10% to 750.

Transfer of State Programmes Has StartedIn April 2004, the then Cabinet of NorthRhine-Westphalia unanimously decided to build NRW.BANK into the federal state’scentral development and promotion plat-form. This objective was confirmed by thenew North Rhine-Westphalian governmentin the coalition agreement of July 2005. For this purpose, major state developmentprogrammes will be pooled at NRW.BANK.In July 2005, the state development fundsof the Technology and Innovation Pro-gramme NRW (TIP) were transferred to the Bank. The aim of the programme is todevelop dynamic, fast-growing technolo-gies and innovations for North Rhine-West-phalia. TIP funds are mainly used to coverexpenses for R&D, studies, investments in product and process innovations, tech-nological infrastructures and technologyinitiatives in commercial and infrastructureprojects.

In September 2005, the Bank signedagreements for the transfer of another fiveprogrammes with the North Rhine-West-phalian Ministry of the Environment andNature Preservation, Agriculture and Con-


Infrastructure and Municipal Finance

sumer Protection (MUNLV). Since January2006, NRW.BANK has supported the Min-istry in the implementation of the followingprogrammes with a combined volume ofapprox. € 80 million:

Ecological project for integrated envi-ronmental engineering (“Ökoprofit”)Ökologieprogramm Emscher-Lippe(ÖPEL) (Emscher-Lippe Ecology Pro-gramme)Promotion of measures aimed at thenature-based development of second-tier inshore watersPromotion of hydraulic engineeringmeasures including damsPromotion of hydraulic engineeringmeasures in the context of theimprovement of the agricultural struc-ture and coastal protection

Increase in RWP and INTERREG Subsidy VolumesThe INTERREG III A Programme promotescross-border cooperation in Europe, whilethe Regional Economic Development Pro-gramme (RWP) supports infrastructureinitiatives in certain regions. Since summer2005, the RWP has also strengthened the cooperation between companies andeconomy-related institutions with a view to improving the competitiveness of small and mid-sized companies. Funding is nowalso available for innovative measures suchas cooperation networks and cluster man-agement.

In 2005, the commitment volume underboth programmes rose by 21% to € 151.7million. The number of commitments wasup by an impressive 32% on the previousyear to 283.

Reorganisation of KfW InfrastructureFundingThe Infrastructure Programme of KfWBankengruppe (KfW) was marked by sever-al major changes in the fiscal year. The“Wachstumsimpulse” special fund, whichwas used to grant interest rate subsidies,was closed in 2004. Accordingly, businesswas moderate for the Infrastructure Pro-gramme in 2005.

KfW reorganised this programme witheffect from August 1, 2005. The new “Kom-munal Investieren” (municipal investment)programme is targeted at municipal com-panies that invest in municipal infrastruc-ture, while the “Sozial Investieren” (socialinvestment) programme is designed fornon-profit applicants who invest in socialinfrastructure. In addition, KfW offersmunicipal governments and their compa-nies the KfW Municipal Loan as a directcredit. In the context of this reorganisation,KfW also introduced a risk-oriented interestrate system for all KfW infrastructure pro-grammes.

Successful Water Management InitiativeLaunched in 1996, the “Ecological andSustainable Water Management NRW” Pro-gramme promoted relevant water manage-ment activities with low-interest loans. Theprogramme was largely funded with fundsfrom the KfW Infrastructure Programmeand the KfW Municipal Loan. Sewage taxfunds were used to fund the reduced inter-est rates. The excellent result of the previ-ous year was once again exceeded in 2005,when NRW.BANK made 423 commitments

31

(2004: 386) for municipal projects with apromotion volume in excess of € 161.9 mil-lion (2004: € 152.1 million). The pro-gramme expired on December 31, 2005.NRW.BANK is assisting the MUNLV indevising a new promotion programme.

Cooperation with LandwirtschaftlicheRentenbank expandedNRW.BANK continued to expand its coop-eration with Landwirtschaftliche Renten-bank, adding the “Spatial InfrastructureInitiatives” Programme to its portfolio. Thisprogramme promotes a number of infra-structure initiatives for municipal govern-ments with populations of less than 50,000.These include, for instance, public sportsfacilities, hiking tracks, day nurseries,medical advice centres and fire protectionmeasures.

Strengthening Municipal FinancesUnder the Reorganisation Act of March2004, NRW.BANK was given the remit tofinance the regional and local governmentsdirectly and immediately. NRW.BANKadvises local authorities, structures theirfinancings and provides them with suitablefinancial products for interest rate and cashmanagement. In the context of its infra-structure financing activities, NRW.BANKstructures and finances public private part-nerships (PPP) with relevance for NorthRhine-Westphalia and participates in struc-tured credits for infrastructure projects.The range of products for the public sectoris rounded off by equity products.

Continued Growth in Municipal FinanceNRW.BANK’s new business (incl. interestrate adjustments) in 2005 amounted toroughly € 2.0 billion. As a result, net com-mitments increased by 10% to € 12.9 bil-lion (2004: € 11.7 billion). The Bankcomplemented the traditional range offinancing products such as short-termlendings, loans and note loans with deriva-tive standard instruments for interest rate hedging. As lenders sought to lock in the attractive interest rates, there wasparticularly strong demand for financingswith long fixed-interest periods (up to40 years) – also for future maturity dates.

NRW.BANK’s new “WM Global Loan” isdesigned to support those cities in NorthRhine-Westphalia in which the SoccerWorld Cup matches will be held. A creditline of approx. € 45 million is available tothe cities of Dortmund, Gelsenkirchen andCologne for infrastructure initiatives.

Financing of PPP projectsIn times of tight public sector budgets, the involvement of non-public partners isgaining in importance for the local authori-ties in North Rhine-Westphalia. According-ly, NRW.BANK assists private bidders inthe financing of their bids. As a precondi-tion, the building investments must befunded through forfaiting. Moreover, thelocal authorities must renounce their rightto object against their payment obligations.Under this model, NRW.BANK financed the private construction and restoration of a school project in Bedburg.


OutlookIn December 2005, NRW.BANK launchedthe “Ideas Contest” to identify innovativeprojects for the renewal of the communitiesin North Rhine-Westphalia. Innovationsthat make a contribution to the economic,ecological, social or cultural developmentof North Rhine-Westphalia and create asustainable benefit for its citizens can winprizes in four categories. The Contest willrun until the end of April 2006.

NRW.BANK will expand its range ofinfrastructure and municipal finance prod-ucts and services in cooperation with theNorth Rhine-Westphalian government. The Bank also plans to launch self-fundedprogrammes. The range of municipalfinance solutions will be geared moreeffectively to the special requirements of local authorities and be complementedby a finance management solution.

In cases where the constellation of aninfrastructure project does not allow theuse of a traditional promotion programme –e.g. in pilot projects – NRW.BANK willdevelop structured finance solutions. TheBank expects to see particularly strongdemand for public private partnershipmodels. NRW.BANK aims to develop corecompetencies in specific segments of infra-structure finance.

33

DuisburgJuly 20 to 26, 2006, Innenhafen

34 Duisburg

One City for AllDuisburg is the No. 1 steel-making city in Europe and a successful logistics centre.And it’s a pleasant place to live, as the city keeps a close eye on its people andtheir needs. When the old “Innenhafen”port was converted into a new neighbour-hood with flats, offices and shops, the city fathers thought of all generations.Together with Stadtsparkasse Duisburg’s“Altenheimstiftung” (a foundation for oldpeople’s homes), NRW.BANK invested€ 9 million in the construction of a nursinghome – so that the elderly, too, can benefitfrom the youthful vibrancy of their city.

35

Understanding andPatience. In Duisburg,They Take Their Timefor the Really ImportantThings.


Bingo, singing, keep-fitexercises – that’s what theevenings at the old people’scentre in Duisburg’sPhilosophenweg look like.

Proud to Be IndependentThe old people’s home in Duisburg’sPhilosophenweg is a place where the drive and enterprise of the residents arevery much appreciated and encouraged.The construction of the home was a pilotproject in the successful redevelopment of the disused “Innenhafen” port.

Thursday afternoon, teatime. The residentsof the old people’s home in Duisburg’s“Innenhafen” port are busy laying thetables. Those who are unable to help, sitdown and chat. The old people who livehere love to get together and talk with eachother.

Many of them have furnished their smallapartments, all of which have private bath-rooms, with their own furniture and pic-tures. In Wiltrud Rühl’s apartment, photosof her trips to Greece adorn the walls. At66, the former personal secretary is theyoungest resident of the home – and thefirst to have her own Internet connection.“I had three strokes. After that I sat in awheelchair for six months,” she says toexplain why she lives here. As she has nofamily, Wiltrud Rühl moved into the oldpeople’s centre. Now she can walk withoutassistance again – all she needs is a stickor rollator walking aid. “I go for a docksidestroll almost every day,” she says proudly.

The management of the home also takespride in this success, which is a sign of the good care. “When Mrs Rühl moved in,we were quite concerned that she wouldnot recover. Now she misses hardly any ofthe events we organise,” Head Nurse InesStork explains. The staff are doing every-thing they can to encourage the residentsto engage in a variety of activities – fromthe weekly bingo sessions to the choir tomoderate keep-fit exercises.

Already when designing the building, theproject sponsor, Stadtsparkasse Duisburg’s“Altenheimstiftung” (a foundation for oldpeople’s homes), attached great impor-tance to creating a pleasant atmosphere.All rooms of the home, which is locatedbetween the canals and the refurbishedwarehouses, are bright and friendly. The€ 9 million for the construction of thehome was raised by the Foundation to-gether with NRW.BANK. The Bank extendslow-cost loans through Wohnungsbau-förderungsanstalt NRW (Wfa), e.g. for theconstruction of rental housing and nursinghomes.

“When the old people’s home opened itsdoors, it was one of the first new buildingsthat were completed in Duisburg’s “Innen-hafen” port,” says Berend Virgils, memberof the Foundation’s Managing Board. “Itwas an important pilot project in the con-text of the comprehensive recultivation ofthe entire site.” Now that all the buildingshave been completed, there’s trendy barsand restaurants next to elegant officebuildings and modern sculptures createdby contemporary artists. Berend Virgilsemphasises that it is very important to theFoundation that an organisation whichrightfully enjoys a good reputation takescare of the home’s residents – this is whythe German workers’ welfare associationwas chosen to operate the facility.

Wiltrud Rühl’s words make it perfectlyclear that the care and service provided is of excellent quality. “I will spend theautumn of my life here,” she says beforeshe leaves to join her choir. “This thoughtlets me sleep peacefully at night.”

Listen, listen, listen – Head Nurse Ines Stork and Administrative DirectorDagmar Preiß agree witheach other: “What counts,are our residents and thecare we give them.”According to Dagmar Preiß, attention and under-standing take top prioritywhen caring for the elderly,especially those withdementia. “While theygradually lose their bear-ings and their memory,their feelings remainintact.”


Wiltrud Rühl is “happy allround” at the old people’shome in Duisburg’s “Innen-hafen” port. In addition tothe many activities that areoffered here on a dailybasis, she goes for regularwalks in the surroundings,takes photos and is oftenvisited by her friends andrelatives.

Through its Wohnungsbauförderungs-anstalt (Wfa) division, NRW.BANK extendslow-interest loans for the construction and acquisition of owner-occupied homes,the construction of rental housing andpublic homes as well as for investments in the existing housing stock. The aim ofthe Bank’s housing promotion activities isto supply low-income and large families, in particular, with appropriate housing. Inaddition, Wfa monitors the North Rhine-Westphalian housing markets and publish-es regular updates on their development.This makes Wfa an important instrument inNorth Rhine-Westphalia’s housing policy.

Continued Demand for Social HousingPromotionWfa’s commitment volume in 2005 totalled€ 892.5 million (2004: € 1,012.2 million;– 12.6%). Of this amount, some € 828.9million (2004: € 991.2 million; – 16.4%)was spent on the construction and acquisi-tion of 13,707 flats, which again exceededthe programme threshold set by the NorthRhine-Westphalian Construction and Trans-port Ministry. An amount of approx. € 63.7million (2004: € 29.9 million; + 112.7%)was committed for investments in the exist-ing housing stock. Wfa’s funding effortswill trigger total investments of roughly€ 2.2 billion.

Another Good Result in Rental HousingConstructionLast year’s excellent result in rental hous-ing construction once again increased in2005, as Wfa granted promotion loans inan amount of € 374.1 million (+ 12.5%) for 5,210 units (+ 10.9%). This gratifyingresult shows that the new promotionscheme, which was improved for investorsin 2002, has been very well accepted. Also,investors expect demand for affordablehomes to remain high.

Demand for Owner-occupied HousingBack to NormalIn 2005, Wfa supported the constructionand acquisition of 7,719 (2004: 10,407)owner-occupied homes. At € 434.9 million,the commitment volume was down 31.5%on the previous year. The decline is prima-rily attributable to the fact that demand hasreturned to normal after investments hadbeen brought forward to the previous yearsdue to the public discussion about the abo-lition of the subsidy for owner-occupiedhousing as well as to the eventual 50% cutin the subsidy with effect from 2005.

Of the above amount, € 332.2 million wasused towards the construction and first-time acquisition of 5,301 homes, while an amount of € 102.2 million was used tosupport the purchase of 2,418 existinghomes. This shows that social housing pro-motion in North Rhine-Westphalia is mak-ing an important contribution to supplyinglow-income households with homes of theirown.


Social Housing Promotion

Favourable Development for Investmentsin the Existing Housing StockWfa granted € 63.7 million (2004: € 29.9million) for investments in the existinghousing stock, of which € 15.4 million wasspent on the extension and expansion of231 rental flats. An amount of € 48.3 mil-lion was invested in the modernisation of1,800 units. This means that investments in the existing housing stock more thandoubled over the previous year. Neverthe-less, demand for the promotion of suchinvestments in the social housing sector is relatively weak – despite the changeddemographic environment and the gener-ous amount of € 175 million budgeted forthis purpose.

Reuse of Disused LandFor three years, the State of North Rhine-Westphalia has promoted the recultivationof former commercial, industrial or militarysites with a view to reducing land con-sumption. In 2005, Wfa granted funds in an amount of € 4.5 million, which will beused to finance the construction of 569rental flats on disused land. In addition, theConstruction and Finance Ministry createda possibility for promoting the demolitionof flats that no longer live up to marketrequirements.

Promotion of Housing and Care Projectsfor the ElderlyInnovative promotion products ensuring an adequate supply of housing for elderlyand handicapped people as well as peoplein need of care were included in the Pro-motion Directive already back in 2004. Aninterdisciplinary Advisory Commission ledby the Construction and Transport Ministrydeliberated on the project entries and pro-posed model projects for promotion. Wfawas also represented in the Commission,which finished its work at the end of 2005when the model phase ended and the regu-lar promotion started.

The State of North Rhine-Westphalia main-ly promotes construction projects thatallow elderly or handicapped people to liveindependently in their own homes as wellas projects enabling different generationsto live together. Care and nursing servicesare organised individually or on an out-patient basis. In 2005, the Constructionand Transport Ministry also created a pro-motion product for people with dementia.Overall, Wfa funded 68 group apartments.A total of € 21.8 million was granted for theconstruction and modernisation of 70 and529 places in homes, respectively.

Increase in State Housing AssetsPromotion funds of approx. € 950 millionwere paid out by Wfa in 2005; this amountalso includes funds committed in the prioryears. Wfa received € 1.0 billion in repay-ments and appropriated budget funds. Asof year-end 2005, Wfa managed just under390,000 loan accounts in a total amount of€ 24.4 billion.

41

The loan volume including payment obliga-tions was down € 103 million on the year2004. State housing assets increased byjust under 1% to € 18.2 billion, while totalassets increased by a moderate € 19 mil-lion to € 21.9 billion.

Monitoring the Housing MarketsAddressing the effects of the demographicchange on the housing markets will be one of the major challenges in the yearsand decades ahead. While structuralchanges are having an effect on the NorthRhine-Westphalian housing markets, thesevary considerably from region to region.The housing market analyses produced inthe context of Wfa’s market monitoringactivities make an important contributionto a more objective debate. For more thanten years, Wfa has published reports on the subsidised rent-controlled housingmarket and the free market. In this context,regional analyses are gaining in impor-tance due to the disparate developmentsand trends in the individual regions.Accordingly, the annual Housing MarketReport contains nation-wide as well asregional results.

With a view to examining the growingregional integration of the housing mar-kets, 20 communities in the eastern Ruhrarea joined in a trial project led by Wfa in2003. The first joint Regional HousingMarket Report was published in autumn2005, with input provided by many actorsin the regional housing market.

At the same time, Wfa supports the hous-ing market monitoring activities of some 30 communities both technically and organisationally. In the context of theCommunal Housing Market Monitoring Initiative (IK KomWoB), the communitiesregularly form plenums or working groupsto exchange current housing informationand experience. This way, Wfa helps to strengthen the communities’ housingexpertise.

Competent AdviceBuilding on its comprehensive experiencein housing promotion, Wfa advises andsupports the Construction and TransportMinistry in developing and designing pro-motion tasks and processes.

On its website, Wfa provides a host of ser-vices for potential home builders seekinginformation on promotion possibilities. The“interactive consultant”, for instance, givesusers an initial indication of the promotionfunds they are likely to receive for theirowner-occupied housing construction pro-jects. The website also offers electronicapplication forms that may be completedonline and printed out.

Wfa offers regular seminars and workshopsfor bank employees and municipal employ-ees responsible for granting housing pro-motion funds and provides them with com-prehensive advice.


OutlookWith a budgeted amount of € 940 million,Wfa will continue the housing promotionprogramme at a high level in 2006. Of thisamount, € 560 million is earmarked for the construction and acquisition of owner-occupied housing and € 280 million for the construction of rented flats and publichomes. An amount of € 100 million will beused to fund investments in the existinghousing stock.

The North Rhine-Westphalian Constructionand Transport Ministry amended the Pro-motion Directive in 2006; in this context,the income limits for initial and ongoingeligibility were raised. Some programmesare no longer restricted to conurbations.

Both rented flats and owner-occupiedhomes will increasingly be made barrier-free in the coming years. It is also plannedto adjust and modernise existing places in old people’s and nursing homes accord-ingly. Going forward, NRW.BANK will also promote housing measures within the context of urban redevelopment pro-grammes aimed at rehabilitating socialhousing estates dating from the 1960s and1970s.

43

Social housing promotion since 2000

Owner-occupied Rented flats Places in homes

2001 2002 2003 2004

Dwellings

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Year 2005

CologneAugust 22 to September 4, 2006, Am Leystapel

44 Cologne

It’s All in the Mix!Kölsch beer, Carnival and the Cathedral,but also media, art and commerce – theRhineland has a tradition of cherishing theold and embracing the new. The people ofCologne take pride in the history of theircity and enjoy the unusual. It is thereforenot surprising that even the farmers in theregion spice up old traditions with newideas. Max Josef Kallen from Stürzelberg,for instance, has used funds provided byNRW.BANK to transform his farm into amodern production business.

45

A Good Climate for New Ideas. A Farmer in the Rhineland Is Reaping the Fruit of His Labour.


Gone are the days of graingrowing. Max Josef Kallenis going for strawberries,potatoes and asparagus –and has his hands full. Hisson Johannes will take overthe farm in the next gener-ation, thus continuing thefamily tradition.

New Ideas out of TraditionFarmer Max Josef Kallen has switchedfrom traditional agricultural products togarden produce – and found a profitableniche.

“I believe that farming is a very honour-able profession,” says Max Josef Kallen. “A farmer is someone who works his landand produces food with his hands.” Theseare clear words from a man who takespride in being a farmer and continuing along-standing tradition. Kallen increasinglysees himself as a modern entrepreneur – a “farming entrepreneur”. Despite thegreat responsibility he would neverexchange his job for another. This closeassociation has its reasons: “We have beenfarmers for over 300 years,” he explains.There has never been an exception in hisfamily. Max Josef Kallen is 46 years old. He married his wife 22 years ago, and “in 1990, we took over the farm in Stürzel-berg from her parents”. Since then, theyhave modernised the farm and purchased

additional land. “Today, we have 170hectares.” This growth required a majorrethinking. Instead of keeping cattle andgrowing grain, the Kallens graduallyswitched to cultivating produce that nor-mally tends to grow in gardens such asstrawberries, potatoes and asparagus. The number of staff and temporary workershas grown in line with the size of the farm.“Especially over the past ten years, wehave become a company with a large pay-roll. We currently have four permanentemployees and eight part-time workers,”explains Max Josef Kallen. During thestrawberry and asparagus season, the farmhires an additional 80 to 100 seasonalworkers.

Stürzelberg is located on the left side of the Rhine, about half way between Cologneand Düsseldorf, in a rural area that is characterised by fields and pastures. “Thesandy soil on the Rhine is ideal to give ourasparagus its mild flavour and our straw-berries their fruity taste,” enthuses thefarmer, according to whom you need to be really good at what you do if you wantto survive in the hotly contested agricultur-al market. In the long term, there are twoways of surviving – “expansion and spe-cialisation”, he says.

The relocation of the busi-ness from the village to thedistrict of Stürzelberg hasmade all processes easier.


It was exactly for this approach that, three years ago, his farm received a loanfrom a special fund launched by Land-wirtschaftliche Rentenbank. Under theregular Promotion Directive, his appli-cation for funding would not have beenapproved. A solution was found jointly byhis relationship bank, Sparkasse Neuss andNRW.BANK. The funds from the specialfund channelled through NRW.BANK areused to support model cases which areespecially innovative and exemplary. Thisway, Germany’s largest state developmentbank supports innovations in the agricul-tural, forestry, gardening and fishing sec-tors while at the same time making thefarming sector in rural areas competitivefor the future.

Kallen used the funds for the constructionof a new production building and forintroducing modern working conditionssuch as washing equipment, a truck load-ing ramp, a refrigeration plant and heatrecovery from the refrigeration plant. Themain objective of the project is to supplyconsumers with fresh, high-quality pro-duce. “Johannes, our son, is 19 years oldand wants to take over the farm one day.He will then repay the rest of the loan.Therefore I want to leave him a farm that is healthy and sound.”

Kallen admits that he is sometimes con-cerned that the revenues will no longercover the constantly rising costs. But heresponds to such concern with the cool-ness that is so typical of the people of theRhineland. “I have always loved to be afarmer and I won’t let nothing disturb thislove of my work.” Moreover, he expects the technologies of the future to open upnew opportunities for the German agricul-tural sector. “Bio gas, grain-derived fuels,rapeseed oil instead of diesel – theserenewable energies offer many new possi-bilities. Not least because some of them are competitive without being subsidisedalready today.” It is impossible to ignorethe optimism in Max Josef Kallen’s voice,when he says: “For the past 300 years, all my ancestors managed to hand over a healthy farm to the next generation. Sowhy shouldn’t I be able to do the same?”

The new production build-ing houses not only thefarm shop for direct salesto consumers but also thewashing equipment and amodern refrigeration plant.It also accommodates thesorting, weighing and pack-aging equipment.

49

Supporting and promoting the people inGermany’s most heavily populated federalstate is a major task of NRW.BANK. Devel-oping their potential is of great importancefor the economic future of North Rhine-Westphalia.

NRW.BANK’s new Individual Promotionunit pools all promotion activities forprivate individuals. Recipients of thesemostly low-volume funding products are households and persons who meet certain social criteria as well as small self-employed businesses, housing companiesand public companies. Individual Promo-tion currently comprises housing pro-grammes of KfW-Bankengruppe (KfW) andofferings of Landwirtschaftliche Renten-bank. NRW.BANK administers both as thecentral institution of the savings banks inNorth Rhine-Westphalia and Brandenburg.

Housing Sector Remains StrongThe Individual Promotion unit mainlyprocesses housing promotion products ofKfW. Notwithstanding the moderate con-struction activity in 2005, NRW.BANKgranted low-interest loans in a total amountof € 1.2 billion, of which € 760.5 million(2004: € 697.8 million) was extended toprivate individuals for the acquisition ofowner-occupied housing. Private individu-

als, private and public housing companiesand other real estate investors received€ 372.6 million for the repair and moderni-sation of existing housing stock. Substan-tial funds were granted for the reduction of CO2 emissions and the use of renewableenergies. Accordingly, there was strongdemand for promotion funds for solar sys-tems, which were introduced by KfW in2005. In this context, promotion funds inan amount of € 41 million have been grant-ed since the beginning of the year.

For Better Farming and AgricultureSince the beginning of 2004, NRW.BANKhas handled the special loan programmesof Landwirtschaftliche Rentenbank forinvestments in agriculture and rural areas.The volume committed under these pro-grammes declined by a moderate 4% to€ 47.5 million. These loans are used topromote, among other things, projectsdesigned to improve the production andworking conditions in agricultural busi-nesses. Another objective is to improve theeconomic structures as well as the livingand employment conditions in rural areas.In July 2005, NRW.BANK also began topromote investments in environmental pro-tection and sustainability.


Individual Promotion

Education Finance Gaining in ImportanceEducation finance is a new task ofNRW.BANK. In view of the planned intro-duction of tuition fees in North Rhine-Westphalia, the Bank developed a tuitionfee loan on behalf of the North Rhine-West-phalian government. The legal provisionsfor the general conditions of this loan areto be defined by the end of March 2006.NRW.BANK will use a new distributionchannel for this product. When the tuitionfee becomes mandatory (scheduled for the2006/2007 winter term), first-time studentscan apply for the loan through the adminis-trations of the North Rhine-Westphalianuniversities; enrolled students may submittheir applications from the start of the 2007summer term.

Flexible Product DevelopmentWhen it comes to solving special tasks,NRW.BANK provides the State of NorthRhine-Westphalia with fast and flexiblesupport. One such example is the specialloan programme for agricultural businessesin the Münsterland region, which the Banklaunched in December 2005. The heavysnowfalls at the end of November led tomajor power outages. Farmers sufferingfrom liquidity bottlenecks as a result of thepower cuts were eligible to apply for finan-cial support under this programme.

OutlookNRW.BANK plans to increasingly supportthe State of North Rhine-Westphalia, thefederal government and the EuropeanUnion in fulfilling social tasks. Apart fromthe tuition fee loan, this includes othereducation finance products, family andsocial promotion products, labour marketand agricultural promotion products. In the context of these promotion activities,NRW.BANK will increasingly offer subsi-dies and loans of small amounts and con-tinue to develop new products. A fullyautomated processing platform wouldallow these products to be handled effi-ciently.

51

DüsseldorfMay 15 to 17, 2006, Schlossufer

July 4 to 17, 2006, Schlossufer

September 6 to 12, 2006, Schlossufer

52 Düsseldorf

53

Diversity through creativityThe state parliament, the media centre, the TV tower – the panorama of Düsseldorfis as dynamic as the city itself. This iswhere decisions are made, innovations aredeveloped and information is exchanged. A lot of what happens in Düsseldorf hasconsequences for the whole federal state.NRW.BANK is part of the creative atmos-phere of North Rhine-Westphalia’s capital.From its head offices in Düsseldorf andMünster, the Bank promotes ideas andinnovations for the future of North Rhine-Westphalia.

NRW.BANK’s capital market activitiesdeveloped positively in 2005. The Bankfurther expanded the programmes initiatedin 2004 and greatly increased the fundsraised, which are important for the genera-tion of profits needed to offer reducedinterest-rate grants and subsidies.Throughout the year, the NRW.BANK curve remained in the sub-Euribor zoneacross all maturities.

More International Issuing ActivityAt € 23.5 billion, the volume ofNRW.BANK’s issues was up 16% on the previous year. Due to greater interna-tionalisation, it was possible to improve the structure of the issues significantly. The equivalent amount of foreign currencyissues rose from € 525 million in 2004 to € 2.3 billion in the past fiscal year. Apart from this, the Bank’s activities weremarked by a large number of premieres as NRW.BANK issued its first bonds inCanadian and New Zealand dollars, Japa-nese yens, the new Turkish lira, Norwegiancrowns and Hong Kong dollars. The Bankalso issued in the sterling and US dollarmarkets.

US Dollar Benchmark as a MilestoneIn autumn 2005, NRW.BANK issued its first 5-year USD bond, thus gaining access to another liquid capital market inaddition to its home market. Investors’interest was huge; the book was closedafter only 24 hours with a volume that hadbeen increased by € 250 million from theoriginal amount to € 1.25 billion. All theseactivities are enabled by the € 20 billionNRW.BANK Debt Issuance Programme(DIP).

Rooted in the Home MarketWith over € 20 billion, the euro capitalmarket remains NRW.BANK’s main fundingsource. Investors in this market showedstrong demand for the products of theBank’s refined portfolio. Under the DIP, theBank drew 60 tranches with a volume ofapprox. € 5.9 billion. The Bank’s domesticissuance came to just under € 14.0 billion.The main emphasis was on registeredbonds and note loans.

Euro Curve Clearly ExtendedThe Bank issued liabilities in all maturityranges. A quarter of the issues had anoriginal term of over 15 years. The longestterm issued was 30 years. The 15-yeareuro benchmark bond issued in January2005 met with strong interest frominvestors. This maturity further extended

54 Capital Markets

Capital Markets

NRW.BANK’s yield curve in the capitalmarket. The Bank’s main activity in theshort-term segment was the issue of thefirst Short Liquid Money Market Bond(SLIMBO). This issue had a volume of€ 1.3 billion.

Global Commercial Paper ProgrammeStrengthenedInvestors’ interest in the money market-related activities of NRW.BANK’s GlobalCommercial Paper Programme (GCP)increased continuously in the course of the year. The Bank issued 163 commercialpapers with a total volume of approx.€ 7.4 billion. Most of these papers weredenominated in EUR, USD and CHF. Forthe first time, the Bank also issued CP inCanadian and Australian dollars. Withterms of up to twelve months, the Banknow covers the full range in this marketsegment.

Expansion of Investor ServiceThe Bank conducted intensive investorrelations activities as part of its debtmanagement efforts. In addition to servingthe European home market, the Bank issystematically also developing the Asianmarket.

NRW.BANK held numerous face-to-facemeetings with its investors. The Bank wasa much sought-after participant in paneldiscussions and conferences, with theEuromoney German Conference in Berlindeserving special mention. These activitiesmainly helped to sharpen North Rhine-Westphalia’s profile abroad.

OutlookNRW.BANK will continue to optimise itsfunding activities in 2006. The high fund-ing volume of 2005 means that this year’sfunding requirements will be lower, i.e. atthe lower end of the planned bandwidth of € 15 billion to 20 billion. As far as therelations with its investors are concerned,the Bank attaches top priority to continuity.This implies a dedicated service for thehome market and the continued develop-ment of new markets. In 2006, the bench-mark curve will be further extended in both the euro and the US dollar market.Under the recently launched KangarooProgramme, NRW.BANK will also makeissues in Australian dollars. In this context,the Bank will develop and refine its port-folio of structured products in line withinvestor demand. While moving forwardwith these new activities, NRW.BANK willremain a reliable partner to its investors.

55

NRW.BANK – On a Good Course

The new building atKavalleriestraße 22 inDüsseldorf. NRW.BANK’semployees moved into their new offices at thebeginning of 2006.

58 Staff Report

Encouraging Personal ResponsibilityFrom vocational training to further trainingto customised seminars – NRW.BANKoffers its employees a wide variety of pos-sibilities for professional and personalqualification. This qualification is support-ed by employees’ own initiative and theirwill to deliver.

Promoting ExchangeThe employees of NRW.BANK have a widerange of different qualifications and back-grounds. Exchanging and exploiting thesequalifications is an important preconditionfor mastering the constantly changing tasks in the banking business. This way,the tasks and objectives of the Bankbecome more transparent, while horizonsand flexibility are increased. NRW.BANKtherefore provides dedicated support foremployees who wish to develop their skillsand embrace change.

Using QualificationsWhenever employees have a similar qualifi-cation as external candidates, their devel-opment to senior positions has priorityover new hirings. The Bank and its execu-tives are committed to this core idea. Forour human resources activities, this meansproviding employees with individualisedsupport and advising executive staff com-petently.

Developing Young TalentIn 2005, the number of trainees increasedto 30. The first office communicationspecialists in the field of banking success-fully completed their exams and have been taken over as permanent employeesby NRW.BANK. To complement their job at NRW.BANK, the first graduates have already begun their university studies,which are supported by NRW.BANK.

59

Putting People First – Staff ReportNRW.BANK relies on its competent and dedicated employees to fill the motto“Promoting Ideas” with life. Bringing out the best in our employees is the main task of our human resources activities.

60 Staff Report

Securing TalentNRW.BANK has introduced an instrumentfor identifying and developing potential.The Bank’s young talent undergo a poten-tial analysis and a special programme for junior managers. The participants areinformed of their current status and refinetheir project and management skills inareas outside their existing competencies.

Combining Job and FamilyIn addition to places in day nurseries,NRW.BANK has offered its employees childcare services for children under the age of three since October 2005. An internalsurvey had shown that there often is a lackof child care facilities for children of thisage. In cooperation with Villa Luna, a pri-vate institution, NRW.BANK now offershigh-quality child care for young parents in Düsseldorf. In 2006, the Bank will try tofind a similar service for employees withchildren in Münster. This way, NRW.BANKallows its employees to start working againsoon after the birth of a child.

61

Staff NumbersIn 2005, the Bank primarily hired new staffin its IT/Organisation/Internal Services,Advisory Services, Economic Developmentand Equity Investments units. Total staffnumbers climbed 87 from the previousyear to 1,035, 51% of whom are womenand 49% men. 671 people are employed in Düsseldorf and 364 in Münster. Thenumber of trainees rose to 30 in 2005.

AcknowledgementIn 2005, we continued to build NRW.BANKinto the central development platform of the State of North Rhine-Westphalia. We would like to thank the employees ofNRW.BANK in Düsseldorf and Münster fortheir strong commitment and successfulwork. Our thanks also go to the employeerepresentatives who once again cooperatedwith management in good faith.

Advisory Centres in the Rhineland and WestphaliaAt NRW.BANK’s Advisory Centres in theRhineland and in Westphalia, ten consult-ants advise commercial clients on all pro-motion and funding matters. In 2005, themain emphasis was on firmly positioningNRW.BANK in North Rhine-Westphalia’spromotion and funding scene and toincrease its visibility. The Bank attendednumerous events, e.g. the START exhibi-tion in Essen and the “MittelstandstagNRW” event in Düsseldorf, a dedicatedevent for small and medium-sized busi-nesses. This strong presence reflects thesuccessful work of the consultants. Thelatter educated and informed the relation-ship banks as well as multipliers also atnumerous presentations, seminars, specialconsultation days, trade fairs and customerevents. This way, they helped to expandthe distribution of NRW.BANK, regionaland federal government products. Theirexperience also helped to develop a num-ber of new offerings.

International Advisory CentreEstablished on April 1, 2005, the Interna-tional Advisory Centre supports NorthRhine-Westphalian companies wishing toinvest outside Germany. The three interna-tional consultants provide information oninternational promotion funds and invest-ment incentives in selected countries aswell as on funding aids granted to theforeign trade sector by the State of NorthRhine-Westphalia, the federal governmentand the European Union. In addition, theyserve the savings banks and their cus-tomers in their capacity as the EU AdvisoryCentre for the North Rhine-Westphaliansavings banks.

In 2005, the International Advisory Centreestablished a contact and cooperationnetwork with development banks and eco-nomic development agencies in EasternEurope. Cooperation accords have beenconcluded with the guarantee and develop-ment bank of Bohemia-Moravia (CMZBR),the Slovakian guarantee and developmentbank (SZRB) and with investment promo-tion agencies in Poland, the Czech Repub-lic, Hungary and Slovakia. In September2005, the Bank signed a cooperation agree-ment with MFB, the Hungarian Develop-ment Bank, under which the two banks willmutually support and advise each other topromote investments by small and medi-um-sized companies. EU accession candi-dates Romania, Bulgaria and Croatia havealready been integrated into the network.

62 Advisory Services

The Door to the Customer – Advisory Services“Promoting Ideas” – this is how NRW.BANK describes its task. It all starts with effective,high-quality information and advice for the potential funding recipients.

Advisory Centre for Public Sector ClientsThe cities, communities and municipalitiesof North Rhine-Westphalia are a key targetgroup of NRW.BANK. Since the end of2004, the Advisory Centre for Public SectorClients has provided this client group withcompetent advice.

At numerous individual meetings, eventsand seminars, the Centre’s account man-agers informed the municipal representa-tives about NRW.BANK’s products andservices in the field of development pro-grammes, municipal and infrastructurefinance, public private partnerships andfunding schemes making active use ofmunicipal assets.

In 2005, the Centre’s account managerswere also involved in developingNRW.BANK offerings and project budgetsfor local authorities. These included, forinstance, the “WM Global Loan”, whichprovides those North Rhine-Westphaliancities hosting Soccer World Cup matcheswith a credit line of approx. € 45 million.The Municipal Finance Department devel-oped a comprehensive range of financemanagement products and services incooperation with the account managers. In this context, pilot projects will belaunched in 2006 which are aimed atprofessional and cooperative municipalfinance management.

Sales Controlling and Sales SupportIn 2005, NRW.BANK built up the SalesControlling and Sales Support units, which ensure that the Bank has effectiveand efficient sales processes in place. Sales Controlling provides an overview ofthe wide variety of advisory, support andsales activities offered by the AdvisoryCentres. The focus is on the promotion and funding products as well as on thesales partners, clients and multipliers ofNRW.BANK. Sales Controlling is currentlydeveloping an information and reportingsystem that takes both quantitative andqualitative aspects into account. On thisbasis, NRW.BANK controls and managesthe operational sales activities of the Advi-sory Centres. It also develops, reviews andupdates the sales strategy on an ongoingbasis.

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Finance/Controlling/Bank TaxationThe Finance/Controlling/Bank Taxation(FCB) unit performs all accounting andregulatory functions of NRW.BANK. In thefiscal year, the project work focused onpreparing NRW.BANK for the status of atrading book institution, which the Bankacquired in July 2005. FCB also began to prepare the grad

Documents

Annual Report 2005 - English version of NRW.BANK Homepage · 2011. 6. 28. · Individual 1)/financial strength2) B/C C-2) –* Outlook stable stable stable * not prepared by Standard