NIBC VIEW

VIEW Annual Magazine 2012

Inspired!

Entrepreneurs share their secrets to success Page 4

daring to dream

Argos Oil CEO Peter Goedvolk thinks big Page 8

Defying the crisis

Amvest on grasping housing market opportunities Page 14

Going green

Investing in a sustainable future Page 22

Entrepreneurial building

Heijmans active in growing PPP market Page 24

the entrepreneurial way

Fast forward

with Jeroen Drost, CEO of NIBC Page 29

Past and present

1945 NIBC was at the cradle of the Netherlands’ post-World War Two recovery. Our main task was to provide finance for the decisive, visionary entrepreneurs who helped rebuild the war-tattered country.

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Past and present

TODAY Today, entrepreneurs are still the driving force behind Dutch business and industry, and NIBC their natural partner. As a bank that was built for business, we share their enterprising, can-do mentality.

“When NIBC was established, the Netherlands was in crisis and our country’s best entrepreneurs weighed in to rebuild it. NIBC’s enterprising, determined and dynamic spirit matched theirs. That mindset distinguishes us to this day. That’s why the theme of this NIBC View is entrepreneurship.”

Jeroen Drost, CEO of NIBC NIBC View 2012

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Round table

Inspiring entrepreneurs share success

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Round table

sharing success

For centuries, the Netherlands has been an outward-looking nation that punches above its weight in the business world. Philips, Shell and Unilever grew from small family companies to become international household names.

But besides the blue chips, the Netherlands is home to a plethora of entrepreneurial success stories. At a lively round table hosted by NIBC, seven inspiring entrepreneurs discussed their experiences and their secrets to success.

The round table was chaired by NIBC managing board members Rob ten Heggeler and Petra van Hoeken (chief risk officer).

“Contact with our clients and business contacts is extremely important,” says Ten Heggeler. “We regularly get together with inspiring entrepreneurs to exchange ideas and views on their companies, their industries and their markets.”

but also with expert advisory, balance sheet and non-balance sheet financial services.”

Share success

For Rattan Chadha, the Indian-born, Dutch-based entrepreneur who founded clothing company Mexx, passion has to be the starting point. “It all starts with passion – not just the desire to make money. Find your passion and then the business concept will f low from there.

Hire people who share your passion: that’s far more important than skills or experience. Then create a meritocracy where the best idea wins,” Chadha said.

“One of the most important lessons I’ve learned is to share your success with others. If you Once the concept is in place and the can’t share, you business is up and running, a culture of sharing is a must-have, according to sev- can’t multiply.”

A key element of our stakeholder consultation in 2011, for example, was an intensive set of interviews with existing clients and prospects to discuss market and sector developments and specific client issues. We also held events for clients in specific sectors, such as automotive and media.

eral participants. ”It’s important to pool Marcel Boekhoorn interests,” said Jan Ferwerda, CEO of supermarket group Sperwer. “At our company, for example, independent entrepreneurs are our customers but also our shareholders. We’re all working together to create shared value.”

“We work in partnership with our business clients,” says Van Hoeken. “By sharing knowledge, we can help them even more effectively, not just with financing

That was echoed by Marcel Boekhoorn, serial investor in companies such as McGregor, SIM and Telfort. “One of the most important lessons I’ve learned is >> NIBC View 2012

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Round table

Rolf de Gier, Peter de Vries, Robert van der Wallen, Rob ten Heggeler, Jan Ferwerda, Job Dura, Joop de Rooij, Marcel Boekhoorn, Petra van Hoeken and Rattan Chadha.

to share your success with others. If you Family feeling can’t share, you can’t multiply. I make Rolf de Gier, co-founder of lifestyle deals in which all parties win.” brand Rituals, discussed the challenges that face the entrepreneur as a family business grows. “It’s crucial to Being different When you’re small, you have to work watch the market, analyse it and adapt even harder to stand out from the crowd. to local needs. We monitor and precisely A number of the entrepreneurs offered measure every transaction, every store environment. Keep the human scale: as their thoughts on how best to do this.

“Growth is good, but first get your house soon as you have over 200 employees in order and think coolly and critically there’s a risk you lose that sense of family, about what differentiates you as a com- so keep devising ways to maintain it,” said De Gier. pany,” advised Ferwerda.

Job Dura, CEO of construction group Dura Vermeer, said innovation was essential. “When you operate in a transparent market, you have to offer more than ‘just’ sharp prices or specialist knowledge. You must innovate tirelessly to stand out from competitors,” he asserted.

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Keep calm

Inevitably, the discussion turned to the challenges of building a business during an economic crisis. “Especially in crisis times, you need to think long-term, and maintain calm inside your organisation.

Make gradual small changes; don’t constantly restructure,” was the advice of Job Dura.

Some things never change, however.

Crisis or no crisis, for small businesses or large, start-ups or established companies, all participants agreed that the Entrepreneurship is not only about ex- customer is king. panding through mergers and acquisitions, noted Joop de Rooij, supervisory “It’s all about the customer. Knowing board member of technical company your customer is the key to achieving Imtech. “Takeovers should not be goals your marketing objectives and maximisin themselves. The starting point has ing profits,” said Robert van der Wallen, to be your strategy. How do you see the CEO of Brand Loyalty. “Acquiring new world? How does this company fit into customers, increasing the profitability of your vision? And what does it cost? existing customers and enhancing cusThose are the questions to ask – in that tomer loyalty: those are the three cornerstones no retailer should neglect.” order,” he said.

Food, Agri & Retail

My view

“Entrepreneurship is not a job; it’s a way of life” Frans Huijbregts used to take spices to local butchers on his bike. Three decades on, this visionary entrepreneur heads up a food ingredient company that he built from a small family business into one of the largest suppliers of powder mixes in Europe.

Huijbregts started working in his father’s company at the age of 17 and took over the helm when he was 21. When he began, it was a small operation run by his mother, father, two employees and himself, working from their home. Now, the Huijbregts Group employs 150 people and the powdered ingredients it produces are found in almost every soup, dessert or gravy made in Europe.

Building the local family business into a company with factories in the Netherlands, Norway and France, was a gradual process. “With every step and expansion, I adjusted my management style and I always continued to educate myself,” says Huijbregts at his office in the southern Dutch town of Helmond. “I also make sure I hire people with skills to complement mine.”

The business will remain in the family: Huijbregts’ son and daughter are keen to follow in the footsteps of their grandfather and father. “The company itself is a bit like a family, too. People often work

Besides strategic planning, he is working with local authorities, other companies and schools to set up training for young people. “We also have an internal company school. We take in people who have got stuck sometimes because they took the wrong path in life. In return, we get loyal, well-trained employees.”

The combination of running a company and using his skills for the community is no coincidence, in Huijbregts’ view. “Entrepreneurship is not a job - it’s a way of life.”

here for decades. We are very open and “NIBC has in-depth clear, however: if an employee doesn’t do knowledge of the food, well, they’re out.”

Ten-year view

Taking a long-term view is key to Huijbregts’ approach. He spends much time on strategy and analysing the food sector. “I always try to figure out where the industry will be in 10 years. Then I adjust the course of the company.”

agri & retail sector. To help our clients, we stay closely tuned to developments in the global food system – because those developments can create both opportunities and threats.”

People laughed and reacted cynically when he predicted in 1990 that consumers would turn to fresh foods instead of frozen products, or that they would eat Hein Godschalx, pre-peeled potatoes. But he was right. Managing Director NIBC The idea that fresh food would become Food, Agri & Retail more popular led Huijbregts to invest millions in his factory, shortening the production process so as to be able to service his clients.

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INDUSTRIES & MANUFACTURING

My view

Daring to dream Peter Goedvolk’s career in energy began in 1984 when he bought a two-employee oil trading firm. Almost three decades of organic growth and dozens of acquisitions later, he had built that same company into an international corporation with over 600 staff and annual turnover in the billions of euros.

So Argos made its most audacious move yet. In late 2011, it merged with North Sea Group – acquiring 350 extra employees and external shareholders in the shape of investment companies Reggeborgh and Atlas Invest. And that meant Goedvolk surrendering the 100% ownership that had made him so unusual in an industry dominated by titans such as Shell, BP and Esso.

Not that this entrepreneur pur sang claims sole credit for Argos’ achievements. “You But his company, Argos Oil, was hungry never do it all by yourself,” he says. “You for more. “Our ambitions were bigger than need some ego to be a successful entreour balance sheet and we couldn’t achieve preneur, but you mustn’t let your ego them in the form we had,” says Goedvolk. grow bigger than your company.”

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Goedvolk, named Port Businessman of the Year in 2006, believes having a resilient “elephant hide” is essential to effective entrepreneurship. So too, he says, are stamina, flexibility and daring.

Daring to dream - and to think big - have been crucial to the success of Goedvolk and the colleagues who have grown Argos into one of the largest independent oil companies in Western Europe.

Inevitably, Goedvolk‘s own role has changed as his company has grown.

Where he once managed Argos on a 50:50 mix of gut instinct and reason, he says that is now 70% reason and 30% gut.

INDUSTRIES & MANUFACTURING

Peter Goedvolk, CEO Argos Oil

The challenge is to preserve Argos’ nimble, entrepreneurial spirit despite its jump in size. After all, it is still dwarfed by the international oil giants – a point that Goedvolk makes with another elephant reference.

“The oil majors are elephants – they’re almost untouchable,” he smiles. “We smaller animals can’t beat them, but we can manoeuvre between them. And the only way to do that is by being flexible.”

“We’ve become the company we dreamed of being”

Argos pays careful attention to the environmental and social dimensions of its projects, working closely with NGOs and governments to ensure sustainability.

The company is a pioneer in biofuels and has set itself clear quantitative targets for reducing CO2 emissions.

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News

News from NIBC

ENGAGED EMPLOYEES

Our 2011 Employee Engagement Survey showed NIBC was once again ahead of other global financial services companies and on a par with high-performing organisations. Overall engagement was 86%, slightly higher than our 85% score in 2010. We aim to stay in this zone in 2012.

The response rate to this second annual survey increased to 86% of employees from 69% in 2010. We see this as a sign our employees appreciate that we respond to their feedback by taking concrete actions based on the outcome of the survey.

GERMAN GROWTH

NIBC’s German activities continued to grow in 2011 - and there is no sign of this growth slowing any time soon.

In our core German midcap market, we hold leading positions in infrastructure finance and leveraged finance.

We have expanded lending at a time when other banks are reducing loan volumes to mid-market clients.

On the retail side, NIBC Direct also performed well in 2011. It won 10 awards for its German online savings products, and introduced a low-cost brokerage service for consumers.

“The financial crisis left a gap in the German mid-market segment. We stepped in and are using our balance sheet and expertise to strengthen our midcap franchise in Germany,” says country manager Ed Langendam.

“Given the size of the German market, there is enormous potential to grow.”

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News

HELPING PREVENT DEBT

Since 2009, dozens of NIBC volunteers have given lessons and workshops at local high schools in The Hague to teach students to manage their finances responsibly. Each year, at least 30 volunteers participate in this debt prevention project, which we initiated together with the city of The Hague. Four other financial institutions have since joined the initiative.

Using their financial expertise, our volunteers will reach about 350 students at five high schools in 2012.

NIBC Direct expands into Belgium

After making a name for itself in the Netherlands and Germany, our successful internet savings bank NIBC Direct expanded into Belgium in late 2011.

The launch was a response to the growing demand in the Belgian market for a bank able to offer competitively-priced products in combination with convenience and maximum transparency.

“Just as in the Netherlands and Germany, NIBC Direct in Belgium is a no-nonsense offering. There is no small print,” says Dirk Dewulf, Director NIBC Direct Belgium. Belgium is traditionally a nation of savers, with a total of around EUR 220 billion in savings accounts.

BANKING ON DIVERSITY

For NIBC, diversity means offering a stimulating work environment to people regardless of their background, age, gender or nationality, and enabling a healthy worklife balance.

Having a representative workforce that better reflects the diversity of our society makes us more attractive, both as an employer and a banking partner for clients.

And we firmly believe that diverse teams deliver better results.

Transparent reporting

Our ambition to be a trustworthy and sustainable bank means we invest effort in being transparent in all our activities. That includes being transparent about our core business activities: communicating how we invest the funds deposited with us and engaging with stakeholders to understand the information they seek about NIBC. But it also means reporting on the social and environmental consequences of our actions.

We report based on the criteria of the Global Reporting Initiative, reaching B level in our 2011 Annual Report. We also take into account criteria for reporting on sustainability set by the Dutch Ministry of Economic Affairs in the ‘Transparency Benchmark’ and are engaged in an active dialogue with representatives of the ‘Eerlijke Bankwijzer’ (ethical banking guide).

With respect to gender, we have committed ourselves to the ambitious target of 30% women in senior management positions by 2015. In 2012, we will sign the Talent to the Top Charter - an external initiative in the Netherlands that encourages companies to commit to promoting women into top positions.

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Oil & Gas Services

TAKING THE PLUNGE

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Oil & Gas Services

Frontier Drilling was a start-up when NIBC first provided it with financing in 2001. By 2007, the independent drilling company was teaming up with Shell to build the state-of-the-art Bully offshore drillship – and so attracting the attention of numerous banks.

Bully was a totally new type of drillship designed as a lower cost, more efficient and cleaner alternative for drilling in ultra-deep water and Arctic conditions.

Shell and Frontier set up a 50:50 joint venture to build the rig, which was designed in conjunction with two first-class Dutch marine engineering and design firms: Gusto MSC and Huisman-Itrec. Commissioned by Shell and specifically tailored to its needs, the concept was based on a new type of drilling tower.

Because of NIBC’s long-standing relationship with Frontier, as well as with one of its then-shareholders, Riverstone, we were invited to take a lead role in the USD 465 million secured finance facility for Bully I. We invited Bank of Scotland to join us. Standard Chartered later became a third mandated lead arranger.

“Bully was an entirely new design, and banks – including NIBC - are usually reluctant to finance such projects. That was a bridge we needed to cross,” says Saskia Hovers, managing director of NIBC’s Oil & Gas Services team.

NIBC did its homework. The bank spoke at length to the companies involved, hired an expert technical advisor and, crucially, harnessed the knowledge it had of the industry and of Frontier. “Based on NIBC’s indepth sector knowledge, track record and expertise, we were able to support Frontier in developing this revolutionary concept,” says Jeroen van der Putten of NIBC’s Oil & Gas Services team. “That meant taking the same entrepreneurial approach as our client.”

Frontier was acquired by Noble Corp in 2010. As a result, Shell and Noble decided to refinance Bully I using their own balance sheet, and the banks’ financing role ceased.

The Bully I was renamed the Noble Bully I. Built in Singapore, it arrived in December 2011 in the Gulf of Mexico, where it will drill development wells for Shell.

Industry developments have proven Frontier was right to build the Bully, says Hovers. “The fact that the same type of compact drillships with the same design and technology are now being built, shows that the client’s instinct was correct.”

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commercial real estate

Optimist in a time of crisis

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commercial real estate

Wienke Bodewes is an optimist. The urban developer believes the housing crisis in the Netherlands will pass in a few years and he’s building new houses to be ready for that day. “Saying that nothing can be done isn’t my style.”

A recession is raging and the Dutch housing market is in crisis, but Wienke Bodewes plans to build houses. He is working hard on preparations to construct 3,000 homes in the Dutch town of Almere. And not just your plain average homes, but homes situated in an artificial dune landscape.

Building houses, and in a manner that people enjoy them, is his life’s work. He studied urban development at the renowned Technical University of Delft and the housing market has been at the centre of his career ever since. Bodewes took the helm at Amvest, a fund manager and developer of homes and residential areas, in 2007 – just a year before the global financial crisis broke out.

“The housing market has been hit hard in recent years. At Amvest we feel the impact as well, but we also try to grasp the opportunities that the crisis creates,” says Bodewes. He has restructured the organisation, cut red tape and tries to encourage creativity.

“At times like this, it all comes down to good entrepreneurship.”

Building for the long term

Bodewes is an example of that entrepreneurship as he guides Amvest through the crisis by taking the long-term view.

And his view tells him there will be a shortage of housing in the Netherlands, crisis or no crisis. “We are planning to build in Almere while house prices are

falling and the number of houses being sold has plummeted.”

But he believes demand will rise because the population is still increasing – especially in areas where Amvest is active and few new houses have been built recently. “You can’t just stop building for years without feeling the consequences in the market.” He also notes the high demand for rental apartments in the midprice segment in many large cities.

One of the major steps Amvest made last year under the guidance of Bodewes was taking a EUR 320 million loan from a banking consortium led by NIBC. The six-year loan was for the Amvest Residential Core Fund, one of the company’s property investment funds. “We were very happy with the work NIBC did for us,” says Bodewes. “We are fully funded now.” The Fund has a portfolio size of EUR 1.2 billion.

“I want to help find solutions”

All these different jobs mean Bodewes works 70-hour weeks, but the long hours don’t trouble him. “It’s not my style to complain and do nothing. I want to help find solutions.”

Organisations such as NEPROM and SWK are essential and the housing system needs guidance through the crisis, he believes. Entrepreneurs should work with this type of organisations and accept roles in them, even if it takes up precious time. “It is a good thing for business people to do. You get a good sense of what is going on in the community.”

“Times of crisis call for true entrepreneurship and innovation. In real estate, this means daring to dream up new concepts for living, shopping and working – with sustainability at the core.”

Bodewes’ dedication to the housing sector and to ensuring that the market – both for rental and buyers – develops fairly and properly has led him to accept the chairmanship of NEPROM, the Association of Dutch Property Developers.

This organisation encourages cooperaHubert van West, tion between public authorities and proManaging Director NIBC ject developers. Bodewes is also chair- Commercial Real Estate man of the supervisory board of SWK, a foundation established by project developers that issues guarantee certificates protecting consumers against risks involved in buying a new-build house.

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TRANSACTIONS

SELECTED DEALS 2011 NIBC was involved in a number of important transactions across its key sectors and markets LAST YEAR. Below is a summary of selected deals. For a fuller overview, see our website www.nibc.com

Technology, Media & Services NIBC Mergers & Acquisitions acted as sole financial advisor to KBC Private Equity, Indufin and management in the sale of Actief Interim to Gilde Equity Management. It also arranged and provided senior debt for the buyout. The transaction involved intensive cross-border cooperation within the bank.

Food, Agri & Retail Corporate Lending Germany provided new client Edeka Rhein-Ruhr with senior debt facilities that will be used, among other things, for the acquisition of beverage discounter Trinkgut. Edeka Rhein Ruhr is part of the Edeka Group, Germany’s largest food retailer.

Oil & Gas Services NIBC closed a senior secured credit facility with Heerema Marine Contractors. Dutchbased HMC is a world-leading contractor that specialises in transporting, installing and removing offshore structures.

Among others, the company owns three semi-submersible heavy crane vessels – the Thialf, Balder and Hermod.

Thialf has the largest crane capacity in the world.

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TRANSACTIONS

Infrastructure & Renewables NIBC European Infrastructure Fund reached an agreement with Vopak to jointly build and operate a terminal for the storage of strategic oil reserves in the north of the Netherlands.

Its strategic location, combined with the unique position of a stand-alone oil storage facility and long-term contract structure with limited construction and operation risk, makes the asset an attractive infrastructure investment.

Industries & Manufacturing NIBC advised the shareholders of Koninklijke Gazelle, the leading Dutch bicycle brand, on its sale to Pon Holdings BV, an international trading and service company. Pon sees growth potential for Gazelle in its home market and internationally, and believes Gazelle is an excellent fit with its automotive activities, given current trends in mobility and transport.

Shipping & Intermodal NIBC acted as sole arranger and hedge provider in the USD 28 million facility for Vroon Group BV. The facility supported Vroon in the delivery of two newlybuilt 1,085 TEU ice-classed container vessels. The vessels have reinforced hulls that enable them to navigate through sea ice like the Baltic Sea and other lowtemperature environments during the winter months.

Commercial Real Estate NIBC advised Nieuwe Steen Investments (NSI) on its EUR 2.2 billion merger with Vastned Offices/Industrial.

The merger between the two listed real estate funds marks the largest real estate deal and largest merger completed in the Netherlands in 2011. NIBC’s interaction with NSI over the past two years is an excellent example of our client involvement and continued client focus.

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SHIPPING & INTERMODAL

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SAFE HARBOUR When it comes to shipping, NIBC helps internationally focused, entrepreneurial companies with their financing needs, from the vessels themselves to the container boxes used for transporting cargo. Our Shipping & Intermodal team monitors market segments, clients and assets. When considering a transaction, we assess both the company’s track record and its assets. Container boxes are seen as the “life blood” of container vessel operators, which makes our intermodal activities crucial in container shipping.

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consumer banking

Consumers take CONTROL In an Accenture survey in 2010, banking executives were asked which emerging changes in customer behaviour they thought would most affect their business in the next one to three years.

The number one change they named was Modern consumers shop around. They customers’ adoption of direct and self- demand simple and transparent products in what is an increasingly competitive service channels to do their banking. market. More consumers are opting for And so it has proved. Consumers are in- high-interest internet accounts. creasingly keen to take charge of their financial affairs. The inexorable rise of the internet, and use of mobile phones and tablets, has fuelled the emergence of what has come to be known as the selfdirected consumer.

At the same time, traditional loyalty to banking brands is a thing of the past and consumers’ trust in the banking sector has been severely dented.

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consumer banking

NIBC Direct: what you see is what you get NIBC introduced its no frills online savings formula NIBC Direct at the end of 2008.

Just as NIBC’s corporate bankers support entrepreneurial corporate clients in building their businesses, NIBC Direct targets independent-minded, enterprising retail customers in the Netherlands, Belgium and Germany who want control of their financial future.

NIBC Direct products are simple, communication is transparent and interest rates are among the most attractive in the industry.

At end-2011, NIBC Direct had more than 200,000 online savings customers with a collective EUR 6.1 billion in savings – a 45% rise over 2010. Some 40% of the savings were in term deposits with maturities of up to 10 years.

Summer 2011 saw the launch of brokerage activities in Germany. NIBC Direct now offers German retail clients an extra service and the opportunity to keep their savings and financial investments in one place. Via the NIBC Direct platform, customers can – on an execution-only basis – invest in shares, bonds, investment funds and index trackers. NIBC introduced NIBC Direct in Belgium in late 2011. The launch was a response to growing demand in the Belgian market for a bank able to offer competitively-priced products in combination with convenience and maximum transparency.

“With NIBC Direct, what you see is what you get.

There is no small print and all clients are treated equally - regardless of age, amount of savings, or whether they are new or existing customers” Michel Kant, Managing Director Consumer Banking

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Sustainability

Investing in a greener future

NIBC strongly believes companies that make social corporate responsibility a priority are the companies of the future.

Companies that seek to meet high social and environmental standards are often entrepreneurial, well-managed and capable of generating sustainable profitable growth. We are keen to do business with them. We also continue to invest in our own sustainability strategy.

A greener building

NIBC invests significantly in reducing its carbon footprint. In 2011, we reduced our energy use by refurbishing our air conditioning system in our offices in The Hague, installing ‘cooling ceilings’ and equipping lights with energy-saving presence detectors.

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Solar panels on the roof of our offices provide our company cafeteria with warm water. In 2012, a new thermal storage system to heat and cool our building will become operational.

These measures combined will result in a 20-25% saving on our energy use by the end of 2013.

Sustainability

Sustainable entrepreneurship Client focus is our guiding principle. Our goal is to build long-term relationships with our clients and to deliver clear and sustainable solutions.

Understanding the environmental and social risks and opportunities that are central to our clients’ businesses helps us realise this goal.

To create a sustainable future, innovation and entrepreneurs are essential.

We work together with clients, exploring new products, services and sectors to help them achieve their financial and sustainability ambitions.

We like to do business with frontrunners in sustainability, such as waste processing company Van Gansewinkel – which is both a client and supplier of NIBC.

“Waste no more” is the motto of Van Gansewinkel. It sees waste as the foundation for new raw materials and energy. Its role and responsibility is to complete the circle and to prevent anything becoming waste.

“Only sustainable companies will survive in the future” Anne-Marie Rakhorst is owner of Search, an international engineering firm, laboratory and training institute, and author of several books on sustainability. She was named Businesswoman of the Year in 2000.

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infrastructure & renewables

The art of entrepreneurial building

Despite the size of Heijmans – with turnover of EUR 2.4 billion, 8,300 employees and involvement in property development, building, engineering and infrastructure projects entrepreneurship is alive and well at the Dutch-listed company.

Heijmans is active in the growing Public Private Partnership (PPP) market. In these projects, the aim is to combine construction with long-term usage of an object in order to achieve a minimum overall life cycle cost. They differ fundamentally from traditional building projects: in PPP, companies such as Heijmans design, construct, maintain, operate and finance the object - be it a bridge, road, museum, court office or office block. The customer – usually a government

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service – pays an availability fee during 20–30 years.

The availability fee can be earned by meeting the agreed output requirements. This principle explains the growing success of PPP, despite the economic crisis and prudent investment policies.

Culture shift

”In PPP, also known as DBFMO, the builder takes on design, building, finance, maintenance and operation, from the first concept to the coordination of aspects such as maintenance, catering, security and gardening,” says Heijmans CEO Bert van der Els. “The client does not define design and blueprint, but output requirements.

That has meant a culture shift at our company: we have to think in terms of clients’ perception of quality and service levels, instead of technical specifications.”

To deliver this, people of many disciplines – from engineers and architects to lawyers, risk and financial

infrastructure & renewables

Annette Prinsen, Corporate Finance Manager of Heijmans

experts – work closely together. Heijmans has a PPP unit that is responsible for the overall coordination of these activities.

Banks such as NIBC play a vital role in making PPP projects financially feasible and managing financial risks. Banks also monitor the delivery of the agreed quality and service in order to ascertain the availability fee to be paid.

Bert van der Els, CEO of Heijmans

In the boat together

“Key to making PPP projects a success is optimising every step of the process – from the initial design phase right through the multi-decade maintenance period,” says Prinsen. “You want the best professionals working together. Then you have the best chance of scoring.”

Scoring is the word, because competition for PPP contracts is stiff. And you need stamina even to enter the race: the complex bidding process can take as a long Corporate finance manager Annette Prinsen says PPP as a year. A project is awarded based on a combination offers a great deal of freedom and innovation – to of quality and price. create the project however you think best. “It’s very motivating for people to exchange ideas and think “You must think like an entrepreneur – not just about about everything from whether the f loor should be your own part, but working with each other and seeking wood or carpeted to the best financial constructions the best solution for the entire lifetime of the building,” and maintenance solutions. You have to think about it explains Van der Els. “By cooperating, you have a better as if you would be using the object yourself.” product, better defined costs and better output for a In March 2012, Heijmans received confirmation that the better price. That imposes extraordinary discipline on Government Buildings Agency (Rijksgebouwendienst) all the partners; as does the fact that they have a shared proposed to appoint the company as selected contractor interest in the project’s success. Every element has to be for the Soesterberg Defence Museum PPP Project, for right. You’re tied to each other for decades, so you have which NIBC is one of the potential financiers. Heijmans to collaborate. You’re all in the boat together.” is also bidding to design, build, finance, operate and maintain a new building for the Supreme Court in The Hague, part of the A1/A6 motorway near Amsterdam, and infrastructure in Belgium.

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TECHNOLOGY, MEDIA & SERVICES

making radio waves 26 |

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A refinancing package for Radio 538, the Netherlands’ most popular commercial radio station, underlined NIBC’s presence as an important player in the Technology, Media & Services sector.

TECHNOLOGY, MEDIA & SERVICES

It also sealed a relationship with one of the most The debt refinancing package for Talpa was a tremendous influential figures in Dutch broadcasting: Radio 538 opportunity. But it was not without its challenges. owner and media mogul John de Mol. Identifying the competitive position going forward and tailoring the appropriate loan package was one of the The five-year term loan for De Mol’s Talpa Media Group, biggest issues, particularly in a changing landscape that co-financed with ABN AMRO and Deutsche Bank, will has seen established media companies disappear and assist Radio 538 as it builds on its solid fan base in the previously unknown ones suddenly valued at billions. crucial 19-34 demographic and diversifies into digital radio in preparation for the future.

“There’s no question that this was the most difficult task,” says Ivo Blij, Associate Director for Lending in De Mol – one of Europe’s wealthiest men and a true NIBC’s Technology, Media & Services team. “This is a media visionary – created reality TV concepts such as business sector undergoing transformational change.

Big Brother and The Voice.

Judging risk under those conditions is incredibly difficult.”

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NIBC at a glance

NIBC: the entrepreneurial bank CLIENTS FIRST

NIBC is an entrepreneurial bank that offers Corporate Banking and Consumer Banking. Agile and flexible, we think and act like entrepreneurs to support corporate clients in building their businesses. For our independentminded, enterprising retail customers, we offer nononsense, transparent products.

what we do

Our Corporate Banking activities cover advice, financing (including derivatives and structuring) and co-investment.

We have expert sector knowledge in Commercial Real Estate; Food, Agri & Retail; Industries & Manufacturing; Infrastructure & Renewables; Oil & Gas Services; Shipping & Intermodal and Technology, Media & Services.

For every transaction, we put together a cross-discipline Our clients are our top priority. By understanding team to create tailor-made solutions. their needs and putting our know-how to work, we build long-term relationships with our customers. We Our Consumer Banking activities include residential work together with corporations, financial institutions, mortgages and online retail saving products via NIBC institutional investors, financial sponsors, family offices, Direct in the Netherlands, Germany and Belgium. entrepreneurial investors and retail clients.

Three strategic priorities

Our clients are our starting point. Ever since our foundation in 1945, our strengths have been in our credit skills, especially in long-term asset finance; our strong client franchise; our investment management capabilities; and our high-quality, entrepreneurial people. We work in partnership with our business clients and we offer our consumer clients transparent retail products. In order to fulfil our ambitions, we have three strategic priorities: client focus; sustainable profitability; and strong solvency and liquidity.

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NIBC View 2012

NIBC at a glance

The Managing Board of NIBC: Rob ten Heggeler, Jeroen van Hessen, Kees van Dijkhuizen, Petra van Hoeken and Jeroen Drost

fast forward Our first clients were very special people: visionary entrepreneurs who helped rebuild the war-torn Netherlands after World War Two. It was a privilege to finance them.

Without their dynamism and determination, the country would not be what it is today.

base while strengthening and diversifying our funding position.

Our strategic priorities - client focus, sustainable profitability and strong solvency and liquidity – drive everything we do. We use our strong capital and liquidity position to serve our clients through transactions that support their business Six decades on, entrepreneurs are still the ambitions. motor of Dutch business. And NIBC is proud to remain their banking partner of choice. Now, as Throughout 2011, we continued to intensify the then, our enterprising, can-do mindset - what client focus that is integral to our strategy. We we call our ‘Yes’ mentality – characterises us. It moved further towards a more client-based shines out from the transactions we devise for approach so that we can better apply our sector our go-getting corporate clients. And from the expertise in developing tailored solutions for transparent, no-nonsense products we offer our corporate clients. our independent-minded retail customers.

We have a strong business model of Customers show their appreciation in the sustainable, client-focused banking activities. positive feedback they give us, including through And we reacted fast to the last crisis, de- the outcomes of the Net Promoter Score risking our balance sheet early and becoming survey – a metric to measure client satisfaction fully client-oriented. We increased our capital – which we conducted for the first time last

year. We also hold regular polls among our retail clients, which gives us input on how we can support them even better.

We regularly get together with inspiring business people to exchange ideas on their companies, industries and markets. Last year was no exception: we conducted an intensive series of interviews with existing corporate clients and prospects to discuss market and sector developments and specific client issues.

In addition, we hosted events for clients in specific sectors, such as automotive and media.

Entrepreneurship has been in our blood since we were founded in 1945. We may live in fastchanging times; but some things never change.

Past, present and future, we were, are and will be the enterprising bank for entrepreneurs.

Jeroen Drost, CEO of NIBC

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NIBC at A glance

Key figures In EUR millions

2011

2010

1,810 9,115 8,745 28,554

1,803 8,693 9,767 28,014

282 170 68

323 163 76

11.8 13.8% 16.2% 17.5% 14.8

13.2 12.9% 14.5% 15.8% 14.5

3.8% 60% 65%

4.5% 50% 58%

1.2

1.7

664 70% / 30% 91% / 9%

669 71% / 29% 91% / 9%

CONSOLIDATED BALANCE SHEET

Shareholders equity Loans to customers Residential mortgages Balance sheet total CONSOLIDATED INCOME STATEMENT

Operating income Operating expenses Net profit attributable to parent shareholder SOLVENCY INFORMATION

Risk weighted assets (EUR billions) Core Tier-1 ratio Tier-1 ratio BIS ratio Leverage ratio (debt/equity) EARNINGS RATIOS

Return on tangible equity Cost-to-income ratio Dividend payout ratio OTHER INFORMATION

Assets under management for third parties (EUR billions) Number of FTEs end of year Male/female ratio Male/female ratio top management NPS score Corporate Banking clients NIBC Direct customer survey score

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NIBC View 2012

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NIBC at a glance

NIBC View is produced by NIBC Corporate Communications Concept & design Mattmo, Amsterdam Photography Kees Bustraan Kees Hummel Frank Ruiter

Our offices

Headquartered in The Hague, NIBC also has offices in Brussels, Frankfurt, London and Singapore.

For more about NIBC and our activities, please visit our website: www.nibc.com.

Text Stampa Communications, Amsterdam and London Printing Albani, The Hague

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Contact

NIBC Bank N.V. Carnegieplein 4 2517 KJ The Hague the Netherlands P.O. Box 380 2501 BH The Hague the Netherlands t +31 (0)70 342 5425 f +31 (0)70 365 1071 info@nibc.com www.nibc.com