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					       KommuneKredit

       Præsentation
       2. september 2008




www.kommunekredit.com      1
       Dagsorden

       • Hvordan præsenterer vi
         KommuneKredit i udlandet
       • Hvordan er KommuneKredit også
       • Spørgsmål




www.kommunekredit.com                    2
       Dagsorden

       • Hvordan præsenterer vi
         KommuneKredit i udlandet
       • Hvordan er KommuneKreit også
       • Spørgsmål – gerne løbende




www.kommunekredit.com                   3
       KommuneKredit
       Denmark

       Investor Presentation
       August / September 2007




www.kommunekredit.com            4
       Agenda

       1. Kingdom of Denmark
       2. The Local Government Sector
          in Denmark
       3. Organization
       4. Business
       5. Funding



www.kommunekredit.com                   5
       Agenda

       1. Kingdom of Denmark
       2. The Local Government Sector
          in Denmark
       3. Organization
       4. Business
       5. Funding



www.kommunekredit.com                   6
       Agenda

       1. Kingdom of Denmark
       2. The Local Government Sector
          in Denmark
       3. Organization
       4. Business
       5. Funding



www.kommunekredit.com                   7
Organization

LEGAL BASIS
• Association, founded by special law in 1899.
  The law was revised in 2006


GUARANTEE STRUCTURE
• KommuneKredit is organized as an association
  (membership organization)
• Membership is restricted to Danish Municipalities and
  Regions only. Currently all Municipalities and Regions
  are members, thereby representing the entire
  population of Denmark
• Members are directly, jointly and severally liable for all
  obligations
• Municipalities have an unlimited right to levy taxes on
  income and property
• The guarantee of the members can be called upon any
  member without a preceding court decision




www.kommunekredit.com                                          8
Organization

KEY FACTS ON THE CREDIT
                                                       “… the institution
                                                       [KommuneKredit] has
• AAA (S&P) / Aaa (Moody’s)                            an extremely strong
                                                       guarantee structure
• 0% BIS risk weighting in Denmark, Sweden,            ultimately backed up by the
  Luxembourg, France and Germany (TBD)                 entire taxpaying population
• The guarantee of the members has never been          of Denmark.”
  exercised                                            Standard & Poor’s, October 2006

• No loan losses in more than 100 years of operation
• Excellent asset quality and substantial reserves –
  solvency ratio 73.2% (2006)
                                                       ”Moody’s views
• Supervised by Ministry of the Interior and Health
                                                       KommuneKredit’s credit-
                                                       worthiness as excellent
                                                       thanks to the strict
                                                       regulations and control
                                                       to which Danish Local
                                                       Governments are subject.”
                                                       Moody’s, June 2006




www.kommunekredit.com                                                                    9
       Agenda

       1. Kingdom of Denmark
       2. The Local Government Sector
          in Denmark
       3. Organization
       4. Business
       5. Funding



www.kommunekredit.com                   10
Business

OBJECTIVE

• Secure low cost funding for Danish Local
  Governments through the non-profit status of
  KommuneKredit
• Leading provider of financial products to Local
  Governments in Denmark


CLIENTS

• Danish Regions and Municipalities
• Semi-public entities guaranteed by Regions or
  Municipalities (waterworks, waste incineration, district
  heating etc.)
• All lending to clients is considered extremely secure
  and is assigned a 0% BIS risk weighting
• Cross-border lending not allowed
• By Central Government regulation clients are only
  allowed to take up loans for certain capital
  investments


www.kommunekredit.com                                        11
Business
COMPETITION
                                                                              GROSS LENDING
                                                                            (Current exchange rate: EUR/DKK 7.44)


• KommuneKredit operates in full
                                                            25
  competition with Danish and international
                                                            20
  banks and other financial institutions




                                              DKK bn
                                                            15

• KommuneKredit is the only specialized                     10

  local government funding agency in                            5
                                                                0
  Denmark and has a market share above                               2002       2003        2004            2005      2006
  75%

PRODUCTS OFFERED TO CLIENTS
                                                                OUTSTANDING LOANS AND LEASES
                                                                              (Current exchange rate: EUR/DKK 7.44)
• Loan products in accordance with the
  regulations issued by Central Government             100

  on Local Government’s borrowing                          80
                                                  DKK bn

                                                           60
• Financial leasing                                        40
                                                           20
• Derivatives and FX products for hedging                   0
  purposes only                                                     2002       2003         2004            2005      2006

                                                                                       Lending     Leases
• Debt advisory services


www.kommunekredit.com                                                                                                        12
Business

RISK MANAGEMENT
KommuneKredit’s policy is to minimize financial risks and         ”KommuneKredit has the
carefully identify, monitor and control these risks.              strictest asset liability
Derivatives are only used for hedging purposes.                   management among the
                                                                  Nordic specialised
CREDIT RISK
                                                                  lenders.”
• Lending only to Danish local governments semi-public            Moody’s, June 2006
  entities (guaranteed) and with 0% BIS risk weighting
• KommuneKredit has suffered no loan losses since its
  inception in 1899
                                                                        Balance          Interest         Currency
• Only highly rated investments min. rating AA-/Aa3           Year      Sheet            Rate Risk*       Risk**

• Derivatives with highly rated counterparties (AA-/Aa3)                     DKK 1,000        DKK 1,000     DKK 1,000


  or against unilateral CSA                                   2006        95,680,500           44,015             13

MARKET RISK                                                   2005        93,408,900           53,347              4

• Strict hedging principles for lending and funding           2004        82,868,500           65,959              1
  transactions
                                                              2003        80,311,000          100,983             -8
• Investments must be asset swapped
                                                              2002        73,398,900          113,412             -1
• Reserves placed in bonds with low duration                * Measured by a 1 percentage shift in yield curves
                                                            **Net balance sheet foreign currency exposure
• Very low currency risks allowed                           (Current exchange rate: EUR/DKK 7.44)



www.kommunekredit.com                                                                                       13
       Agenda

       1. Kingdom of Denmark
       2. The Local Government Sector
          in Denmark
       3. Organization
       4. Business
       5. Funding



www.kommunekredit.com                   14
Funding
BUDGET
                                                                      FUNDING BUDGET
• Growth in lending volumes and new regulations from the
  supervisory authority have increased the funding budget
  for 2007 by 20%                                                                                                        EUR bn

• Total long term funding budget (maturities > 1 year) for                                                           2007         2006
  2007 amounts to EUR 4bn                                                          Benchmarks                            1.2       0.0

NEW STRATEGY                                                                       Domestic bonds                        0.7       2.1

• KommuneKredit has taken the strategic decision to                                Private placements                    0.9       0.8

  become a regular EUR benchmark issuer with the launch                            Total                                 3.9       3.0
  of its first transaction in 2007
• Inaugural EUR Benchmark expected to be launched in
  September/October 2007 with the minimum size of EUR
  1bn. Maturity considerations will be based on investor              BALANCE SHEET AND
  feedback                                                            RESERVES
                                                                                    (Current exchange rate: EUR/DKK 7.44)
• KommuneKredit is a frequent issuer in Denmark for
  more than 100 years. The wish is to extend this                                  120                                            3,8




                                                             Balance sheet DKKbn
  philosophy internationally and offer investors the                               100                                            3,7




                                                                                                                                        Reserves DKKbn
  opportunity to buy EUR denominated AAA/Aaa Nordic                                 80
                                                                                                                                  3,6
                                                                                                                                  3,5
  Agency risk for the first time                                                    60
                                                                                                                                  3,4
                                                                                    40
                                                                                                                                  3,3
• With an enlarged budget KommuneKredit will continue                               20                                            3,2
  to provide private placements that offer flexibility and                            0                                           3,1
  meet specific investor demand                                                            2002    2003   2004    2005     2006
                                                                                                  Balance sheet   Reserves




www.kommunekredit.com                                                                                                              15
Funding

STRATEGIC MARKETS                        OUTSTANDING FUNDING 2006
• Europe
                                                            Other
• Denmark / Nordic                                   USD     7%
                                                     8%
• Asia
                                               EUR
• Switzerland                                  10%

                                                                                DKK
                                               CHF                              54%
                                               10%
SOURCES
• Public foreign issuance                             JPY
                                                     11%
• Public domestic issuance
• MTN
• Schuldscheine                               FUNDING BY SOURCE
• Uridashi                                                      Foreign Bond

• Bilateral loan agreements                                        Issues
                                                                     1%



                                                                                 MTN's
DOCUMENTATION                                                                    36%


• USD 10bn EMTN Programme                  Copenhange
                                              Stock
• USD 3bn ECP Programme                     Exchange
                                              56%
                                                                                  Private
• Uridashi shelf with sovereign status                                          Placements
                                                                                    2%
                                                                          Long-term
                                                                          Bank Loans
                                                                             5%

www.kommunekredit.com                                                                        16
Financial Information

GROUP INCOME STATEMENT
 Amounts in DKK mio.


 INCOME STATEMENT                                          2007       2006

 Interest income and similar items                       4,151.6    3,140.5

 Interest expenses and similar items                     -3,877.5   -2,927.2

 Net interest income                                       274,1      213.3

 Value adjustment on securities                            -18.9       -20.7

 Other income                                                 8.1        2.3

 Value adjustments of funding, lending and derivatives      16.9       27.5

 Administrative expenses                                   -59.0       -66.3

 Depreciation                                                 5.5        4.1

 Adjustment of pension provision                              6.6        2.2

 Profit before tax                                         209.1      149.8

 Tax on year’s profit                                      -24.1       -40.9

 Profit for the year                                       185.0      108.9

(Current exchange rate: EUR/DKK 745.66)


www.kommunekredit.com                                                          17
Financial Information

GROUP BALANCE SHEET
Amounts in DKK mio.




 ASSETS                                       2007        2006    LIABILITIES                       2007        2006

 Lending and leases                        90,703.3    86,158.8   Bonds quoted on OMX            57,749.2    50,311.2
                                                                  (Cph. Stock Exchange)

 Cash funds                                 8,810.8     6,367.0   International securities       47,653,9    41,856.1

 Portfolio of bonds etc                    12,077.2     3,083.7   Other liabilities                 371.9       328.6

 Intangible assets                              5.2         6.8   Derivative fin. instruments     7,695.7     6,135.7

 Land and buildings                            80.8        81.0   Deferred tax                      299.9       324.2

 Other assets                                 191.8        66.6   Pension provision                  67.5        64.1

 Derivative fin. instruments                5,900.1     6,991.6   Equity                          3,929.3     3,737.6

 TOTAL ASSETS                             117,772.3   102,757.5   TOTAL LIABILITIES             117,772.3   102,757.5



(Current exchange rate: EUR/DKK 745.66)




www.kommunekredit.com                                                                                               18
  Funding

  PEER GROUP COMPARISON


                     KommuneKredit       NWB                 BNG                  Rentenbank          Eksportfinans       KBN                Kommuninvest
                     Denmark             The Nederlands      The Nederlands       Germany             Norway              Norway             Sweden


Main Benchmark             EUR                  EUR                 EUR                  EUR                USD                  USD               USD
currency


Rating               AAA/Aaa             AAA/Aaa             AAA/Aaa              AAA/Aaa             AA+/Aaa             AAA/Aaa            AAA/Aaa

Ownership            Membership by       17% central         50% Dutch            100% Fed.           85% banks, 15%      80% central        100% Swedish
                     100% Danish         government, 81%     central govern-      Republic of         central govern-     government, 20%    local government
                     local               water-boards, 2%    ment, 50% local      Germany (Anstalt    ment                local government
                     governments         provinces           government           des offentlichen
                                                                                  Rechts)

Guarantee            Direct, joint and   N/A                 Government           Implicit Govern-    N/A                 Government         Jointly and
                     several                                 owned company        ment guarantee                          owned company      severally
                     guarantee from                                               through mainte-                                            guaranteed by
                     members                                                      nance obligation                                           members

Risk weighting       0%                  20%                 20%                  0%                  20%                 20%                0%

Purpose              Danish public       Public sector       Dutch public and     Agricultural and    Export credit and   Norwegian public   Swedish public
                     sector lending      lending and Dutch   semi-public sector   rural development   public sector       sector lending     sector lending
                     only                water control       lending              bank                lending             only               only
                                         boards


Profit orientation   Non-profit          Profit maximising   Non-profit           Slight profit       Profit maximising   Slight profit      Non-profit
                                                                                  maximising                              maximising




  www.kommunekredit.com                                                                                                                                   19
       Dagsorden

       • Hvordan præsenterer vi
         KommuneKredit i udlandet
       • Hvordan er KommuneKreit også
       • Spørgsmål – gerne løbende




www.kommunekredit.com                   20
Ener?

Ydre organisation (Danmark)
                                                                          Bestyrelse
• Tidligere
    • Kun én ”kommunekredit”, men almindeligt
      andelsselskaber med og solidarisk hæftelse.
    • Flere institutioner med egen lov.


• NU                                                                      Direktion
    • Få andelsselskaber
    • Få institutioner med egen lov – dog nogle
      med undtagelsesbestemmelser i generelle
      love.

                                                                     Stabs-
Indre organisation                                                 funktioner
    • Ikke usædvanlig
    • Afhængig af størrelse



                                                    Udlåns-    Finans-    Økonomi-      Con-      Kommune
                                                    afdeling   afdeling    afdeling    trolling   Leasing A/S




www.kommunekredit.com                                                                                      21
Ener?

• Udlandet
  Finansieringsinstitutioner for kommuner, amter
  og regioner mm findes i mange lande. Disse er
  organiseret forskelligt.
  Dem, der navnemæssigt ligner Kommune-
  Kredit mest, er:


• KBN – Kommunalbanken AS, Norge
  WWW.kommunalbanken.no

• Kommuninvest i Sverige AB
  WWW.kommuninvest.se

• Kommunkreditt Norge AS
  www.kommunekreditt.no/Startside.aspx
  Se evt. under www.exportfinans.no

• Kommunalkredit Austria AG
   WWW.kommunalkredit.com




www.kommunekredit.com                              22
Konservativ – gammeldags?

                              1900             1990             2008

 Tab – forsigtig               Ja               Ja                Ja
 forretningsdrift

 Mission og vision        Veldefineret       Usikker        Veldefineret*


 Salgsmetode                   ?            ”Postordre”      Alle metoder

 Produktudvalg             Begrænset        Begrænset     Næsten ubegrænset

 Antal ansatte          Nogle få personer       18              45-50

 Uddannelse                 Relevant         Tillærte*          God*


 Markedsandel                 Lille          Rimelig             Stor

 Antal medlemmer           Få/>1500         Mange/289          Alle/103


www.kommunekredit.com                                                       23
Konservativ – gammeldags?

Mission og vision

  Mission
• KommuneKredit har som mission at opfylde den kommunale sektors behov for finansie-
  ring og tilknyttede serviceydelser.
  KommuneKredit bidrager herved til at skabe større økonomisk råderum for det danske
  samfund.


  Vission
• KommuneKredits vision er:

    • at være den absolut førende leverandør af finansiering til den kommunale sektor,

    • at være anerkendt som en professionel og troværdig rådgiver og samarbejdspartner,

    • at være en attraktiv udviklingsorienteret virksomhed med effektive processer og høj
      kvalitet, hvor resultaterne skabes af engagerede og kompetente medarbejdere.




www.kommunekredit.com                                                                       24
Konservativ – gammeldags?

• Stor kontinuitet
  – kun 5 adm. dir. siden 1899                  Uddannelse
• Fokus
  – kun aktivitet inden for niche      100%

                                       90%
• Personale
  - relv. uddannelse, baggrund         80%

• Engageret personale                  70%
                                                          Ingen
                                       60%
• Værdier                                                 Anden
    •   Kunden i centrum               50%                Kontor
    •   Trivsel og godt arbejdsmiljø                      Bank
                                       40%
                                                          Videregående
    •   Kvalitet i arbejdet
                                       30%
    •   Åbenhed og godt samarbejde
    •   Uddelegering og ansvar         20%

                                       10%
• Personalepolitik
  - få rejser, de fleste bliver         0%
                                              1990 2008




www.kommunekredit.com                                                25
Lille – stor?

 Mio. kr.                   Danske Bank            KommuneKredit
                            Regnskab 2007          Regnskab 2007

 Balance                              3.349.530               117.772



 Udlån                                1.700.999                90.703



 Overskud 2007 før skat                   19.870                    209



 Overskud 2007 efter skat                 14.870                    185



 Egenkapital                           104.355                     3.929




www.kommunekredit.com                                                  26
Lille – stor?

 Mio. kr.                   Danske Bank             KommuneKredit
                            Regnskab 2007           Regnskab 2007

 Balance                              3.349.530                117.772
 Balance pr. ansat                          141,7              2.676,6

 Udlån                                1.700.999                 90.703
 Udlån pr. ansat                             72,0              2.061,4

 Overskud 2007 før skat                   19.870                     209
 Overskud pr. ansat                           0,8                    4,8

 Overskud 2007 efter skat                 14.870                     185
 Overskud pr. ansat                           0,6                    4,2

 Egenkapital                           104.355                      3.929
 Egenkapital pr. ansat                        4,4                   89,3




www.kommunekredit.com                                                   27
Lille – stor?


      90

      80

      70

      60

      50

      40

      30

      20

      10

       0
        1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006



www.kommunekredit.com                                                           28
Kommune Leasing A/S

                        • Oprettet 1989 som fælleskommunalt A/S,
                          hvor KommuneKredit ejede 20 pct. af
                          aktiekapitalen
                        • Oprindeligt kun et salgsselskab – admini-
                          stration og finansiering skete via bank
                        • KommuneKredit har købt de andre
                          aktionærer ud
                        • KommuneKredit finansierer Kommune
                          Leasing A/S 100 pct.
                        • Der er ingen ansatte i Kommune Leasing
                          A/S
                        • Administrationen foregår 100 pct. i
                          KommuneKredit
                        • Kommune Leasing A/S har samme
                          bestyrelse og samme direktion som
                          KommuneKredit.
                        • Kommune Leasing A/S fungerer som en
                          afdeling i KommuneKredit
                        • Fusion?


www.kommunekredit.com                                                 29
More information

Annual reports, rating reports, funding programmes   CONTACTS
and general information can be found on
                                                     Mr. Johnny Munk
www.kommunekredit.com                                Managing Director
                                                     Phone + 45 33 69 76 24
                                                     jmu@kommunekredit.dk
                                                     …




www.kommunekredit.com                                                         30

				
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