nord/lb‘s aircraft covered bond (flugzeugpfandbrief) · market value in bn. usd 12 expected...

NORD/LB‘s Aircraft Covered Bond (Flugzeugpfandbrief)Roadshow January 2014

January 2014 2

Executive Summary

� At just over EUR 204 bn. total assets, NORD/LB is the third largest Landesbank and one of the 10 largest banks in Germany.

� A part of the bank‘s business model is Shipping and Aviation Finance. Thanks to decades of successful experience NORD/LB is regarded as highly competent in this field and is one of the top names in the market.

� Over the last decades, aircraft industry in particular has proven to be both crisis resistant and strongly growing due to products with very stable demand.

� As part of its funding diversification of the EUR 7 bn. Aviation Finance portfolio, NORD/LB is going to issue its second aircraft covered bond (Flugzeugpfandbrief) based on the German Covered Bond Act (Pfandbriefgesetz).

January 2014

Agenda

NORD/LB Strategy and Business Model

Basics of Aviation Finance

Aviation Finance at NORD/LB

NORD/LB‘s Aircraft Covered Bond (Flugzeugpfandbrief)

Appendix

Contacts

3

January 2014 4

� Shareholders are two federal

states and three regional

savings bank associations.

� The lion‘s share is currently

held by the state of Lower

Saxony (Fitch: AAA).

� Direct clients in retail,

corporate and SME sectors

provide the backbone of the

business in Northern

Germany, along with the

institutions of the public

financial sector.

� NORD/LB‘s core

competencies are in

transport and infrastructure

finance as well as in the

issuance and distribution of

high grade fixed income

instruments (benchmarks

and private placements).

Shareholders, Structure and Business Model of NORD/LB


NORD/LB is a chartered publicsector institution ("Anstalt desöffentlichen Rechts“), however,without explicit governmentguarantees.

Group ratings - Sen. Unsecured

NORD/LB A3 / ADeutsche Hypo Baa1BremerLB Baa2 / A

Group ratings Hypotheken- und Öffentliche Pfandbriefe, Lettres de Gage

NORD/LB Aaa / AAADeutsche Hypo Aa2NORD/LB CFB AA+ / AAA

Through its fully ownedsubsidiary BraunschweigischeLandessparkasse (BLSK) withtotal assets of more than EUR10 bn. and over 100 branches,NORD/LB has its own retailnetwork.

January 2014 5


Domestic and international business and represented in important financial and trade centres

LondonAmsterdam

Paris

Luxembourg

Frankfurt

Munich

Nuremberg

BremenHamburg

BraunschweigMagdeburgHanover

Duesseldorf

Schwerin

Moscow

Singapore

New York

Shanghai

� Head offices Hanover, Braunschweig, Magdeburg

� Branches worldwide London, New York, Singapore, Shanghai and a representative office in Moscow

� German branches Duesseldorf, Hamburg, Munich, Schwerin and more than 100 branches of Braunschweigische Landessparkasse

� Subsidiaries and bank holdingsBremer Landesbank, Deutsche Hypothekenbank, NORD/LB Asset Management, NORD/LB Luxembourg, NORD/LB Covered Finance Bank

January 2014 6

� One of Germany‘s most

traditional banks

� High degree of market

penetration and coverage

of a large number of

investors, including but not

limited to the associated

savings banks and the

public sector

� Continuous strengthening

of distribution capacity

across Germany

� Persistent profitability even

throughout the crisis

� Investor driven focus on

public sector securities,

Pfandbriefe and other

Covered Bonds with a

regional emphasis on

Germany and Northwestern

Europe

A Steadfast Institution with a Long History


� With its over 200 year long history and as one of Germany‘s seven Landesbank

groups NORD/LB is a core component of the German banking system.

� Building on a balance sheet of roughly EUR 204 bn., NORD/LB has direct access to

more than a quarter of all German savings banks as well as to a multitude of

insurance companies, pension funds and specialised financial institutions –

particularly in the public sector.

� Due to its sustainable and successful business model, distribution capacity and

access to varies funding sources, NORD/LB has achieved an excellent standing in the

market.

� NORD/LB‘s regional focus is concentrated on the Northern part of Germany. In

comparison with the other Landesbanks, NORD/LB thus covers by far the greatest

surface area in the country.

� The bank has been a reliable player in the capital markets and one of the global

leaders in Shipping and Aviation Finance for decades. NORD/LB has not suffer

significant losses requiring direct government assistance during the current crisis.

� The banks conservative ownership and investor base has been the backbone of

NORD/LB‘s success. Building on this, the bank is acknowledged with a high level of

competence in the capital markets – especially so when it comes to issuing and

distributing Pfandbriefe, other Covered Bonds, German state bonds and other public

sector securities.

January 2014

Agenda





Appendix

Contacts

7

January 2014 8

� Significantly stronger

growth in comparison

with global GDP

� Relatively faster recovery

from cyclical downturns

� Relatively faster recovery

from non-periodical crises

� Growth declines

increasingly caused by

regional factors and

limited to regional markets

� Value of new aircraft to be

delivered over the next 20

years expected to reach

USD 4,800 bn


Aviation – A Crisis-Resistant but Cyclical Growth Sector

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

e

Revenues Passenger Kilometers (YoY)

1. Gulf War

Asian Crisis

09/11

2. Gulf War

Subprime /Financial

Crisis

Source: IATA

January 2014 9

� Growing demand for air traffic according to manufacturers’ forecasts

� Growth rate differences across continents due to rather different base levels

� Decreasing dependence on North American and Western European markets

� Historical consolidation of supply side for the last 50 years mostly concluded

� Domination of German and French banks in Aviation Finance

� NORD/LB one of the leading players

� Direct peers are DVB and KfW IPEX in Germany and Crédit Agricole, BNP Paribas and Natixis in France

Growth Perspectives in Global Competition

North America2013–2032 +3.0% p.a.

Africa2013–2032 +5.1% p.a.

Latin America2011–2030 +6.9% p.a.

Europe2013–2032+3.8% p.a.

Middle East2013–2032 +7.1%p.a.

CIS2013–2032 +5.8% p.a.

Asia Pacific2013–2032 +5.5% p.a.

Source: Airbus Global Market Forecast 2013-2032; NORD/LB


January 2014 10

� Low asset price volatility

even during crises

� State-of-the-art assets with

high market penetration

(numbers and operators)

� Stable value development

for fungible aircraft types –

relatively independent of

crises

� Higher value stability in

comparison with other

assets (e.g. ships) via

� Consistently high

demand for standard

models in the

secondary market

� Comparably very easy

facilitation of

alternative uses

Low Volatility of Aircraft Values

Source: Ascend

Narrowbodies (MV/BV Historical Value Performance – Constant Age of 5 years)

Widebodies (MV/BV Historical Value Performance – Constant Age of 5 years)


� Narrowbody

Standard fuselage, single

aisle, up to 4m diameter

� Widebody

Standard fuselage, multi-

aisle, over 5m diameter

January 2014

0,08

0,1

0,12

0,14

0,16

0,18

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Ticket revenue per passenger kilometer in %in cent per seat-kilometres

11

� 1990 – today

� Formation of global alliances

� EU-Deregulation

� Increasing number of business models

� Consolidation in saturated markets

� Rising passenger numbers with falling average revenues

� Forecast

� Size and financial strength of airlines as an indicator for survival potential

� Active fleet- and cost management are essential

� Growing constraints from new fees, excises and rising fuel cost

Increasing Competitive Pressure

Quelle: Airbus Global Market Forecast 2011-2030; NORD/LB

Rising Demand and Capacity Utilization

Compensation of decreasing Average Revenues with Efficiency Gains

60%

65%

70%

75%

80%

85%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Global air passenger traffic utilization in %


January 2014

0

500

1.000

1.500

2.000

Narrowbodies 47% Widebodies 45% Regional Jets 2% Large 6%

Mark

et

valu

e in

bn

. U

SD

12

� Expected delivery of ca.

33,500 aircraft globally with

a market value of ca. USD

4,800 bn. over the next 20

years

� Focus on Narrowbodies and

Widebodies for short and

intermediate range traffic

� Limited number of suppliers

in the global market

� Wide-/Narrowbodies

with more than 150

Seats: Airbus & Boeing

� Regional Jets with less

than 150 Seats:

Bombardier & Embraer

� Further strong increase of

financing needs

Rising New Delivery Volumes Anticipated

Expected Global New Aircraft Deliveries

Expected Market Values


0

5.000

10.000

15.000

20.000

25.000

Narrowbodies 70% Widebodies 22% Regional Jets 6% Large 2%

Nu

mb

er

of

air

cra

ft

Source: Boeing Current Market Outlook CMO Presentation 2013-2032

January 2014

0

20

40

60

80

100

120

140

2012 2013 2014e 2015e 2016e 2017e

in b

nU

SD

13

� Continuing large Aviation

Finance volumes to be

sourced from banks

� Maintaining the financing

banks’ special role and

importance

� Current share of commercial

financing (banks and parts

of cash) at ca. USD 30 bn.

� NORD/LB share in annual

commercial Aviation Finance

volumes currently at approx.

8-9%

Financing New Deliveries

Source: Boeing Capital 11/2013

Composition of Financing Options for New Deliveries


23(30%)

19(25%)

8 (10%)

4 (5%)

19(25%)

RJ ECAs

Tax Equity

Cash

Capital Markets

Lessors(Self Fund)

Commer-cial Banks

Export Credit

Agencies

~ USD 95bn~ USD 104bn

~ USD 116bn

7 (7%)

29(30%)

20(21%)

10(10%)

24(25%)

32

~ USD 125bn~ USD 128bn

~ USD 132bn

2.51.5

January 2014 14

Aircraft Mortgage

(Flugzeughypothek)

� Land Charge and Ship Mortgage as basis for legal regulations

� Aircraft Mortgage an established, tried-and-tested security instrument

� Qualifying/eligible registers/mortgages in Aviation Finance

� ca. 30 registers

� Further registers for special cases

� „Comparable“ Aircraft Mortgages as defined per German Pfandbrief Act

� CAN, DEN, FRA, GBR, IRL, KOR, LUX, MYS, NED, NOR, NZL, SGP, SUI, USA

� Legal due diligence: Order, content, priority, liquidation, entry, etc.

Structures in Aviation Finance I

Direct Loan

Aircraft

Aircraft

Mortgage

Airline

LesseeBank

Loan

Basics of Aviation Finance – Legal Aspects

January 2014 15

Other forms of risk mitigation typical in aviation

� Assignment of lease agreement→ lessor‘s right to have property returned

� Assignment of manufacturer‘s warranties

� Assignment of full coverage insurance (or bank as co-insured party)

� Pledge of SPV owner’s shares

� Pledge of security deposit and maintenance reserve

� Power of attorney for deregistration

Finance Lease

Aircraft

Aircraft

Mortgage

OwnerBorrower

BankLoan

Airline

Lessee

Pledging of Shares

Lease

Security Interest in the Lease

Sh

are

ho

lder


Structures in Aviation Finance II

January 2014 16

Structure Advantages

� Financing of Operating Lease Structures:Financing of a leasingcompany

� In case of lessee‘s (Airline) default, lessor (Leasing Company) steps in

� In case of default, Lessortakes possession / re-possession of the aircraft

Financing of a Leasing Company


Structures in Aviation Finance III

Aircraft

Aircraft

Mortgage

BankLoan

Airline

Lessee

Pledging of Shares

Lease

Security Interest in the Lease

Shareholder

Leasing

Company

OwnerBorrower

January 2014 17

� General regulations of international private law (conflict of law rules)

� Geneva Convention

� High number of ratifying states (89)

� Mutual recognition of Aircraft Mortgages

� Established framework

� Cape Town Convention

� Growing number of ratifying states (60 today)

� New type of independent security interest in aircraft

� Recording in “International Register”

� Harmonisation of enforcement procedures, enhanced legal position

� ECA discounts

International Recognition of Security Interests in Aircraft & Registries

Meet the NORD/LB criteria

Other Treaty States

Cape Town Convention

Other Treaty States

Geneva Convention

vdp memorandum: Officially determinded comparability to German Aircraft Mortgages

Canada, Denmark, England, Finland, France, Ireland, Luxembourg, Malaysia, Netherlands, New Zealand,

Norway, Singapore, South Korea, Switzerland, USA


Register States: Eligibility / Basel-II-Compliance / Applicable International Treaties

January 2014

Agenda





Appendix

Contacts

18

January 2014 19

� Dynamic development over

the full period

� Disproportionately

successful participation of

NORD/LB in sector growth

� Main growth drivers in air

traffic

� GDP growth

� Technical progress

� Deregulation

� Average global GDP growth

since 1955 ca. 3.6% p.a.

� Average global growth of

aviation industry in the same

period ca. 5.5% p.a.

� Average growth of NORD/LB

Aviation Finance portfolio

since 1990 ca. 23% p.a.

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Revenues Passenger Kilometers (RPK)

Aircraft Loans of NORD/LB in bn. EUR


B777 entry into service 1995

A380 entry into service 2007

B787 entry into service 2011

Source: Manufacturer‘s Data and of IATA, NORD/LB


Development of Global Aviation Industry vs. NORD/LB Aviation Portfolio

January 2014 20

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7 8 9 10

years

%

Repayment Schedule Future Base Value

Current Market Value

� Conservative focus and enhanced risk management based on NORD/LB financing criteria

� Internal regulatory framework with

� Limitation of advance and balloon risks

� Restriction to financing continuously robust and fungible assets

� Focus on reliable and well known partners

� Ensuring adequate matching of cash flows and financing structures

� Arrangement of supplementary collateral and security arrangements as a general rule

Risk Limitation through Conservative Financing Structures

Asset-Based-Lending-Approach: LTV Profile of a Typical Aircraft Financing Transaction

at NORD/LB

Risk Buffer

Example

� Market to Base Value Spread +/-20%(based on historically measurable trend)

� Premise: Initial LTV of 70%, balloning in year 10 with LTV of 35%


January 2014 21

� Enforcement of security by

NORD/LB in case of an

operator’s insolvency offers

the following possibilities:

� New lease

� Resale

� NORD/LB has an excellent

enforcement track record

without incurring significant

losses in the process

� Average loan loss rate very

low at ca. 0.03% p.a.

� Cumulative loan losses

since initiation of Aviation

Finance business at

NORD/LB (1984) ca. EUR

20.9 mn.

Enforcement of Security – Dealing with Default

Case Studies


� Four Airbus A319 / German Airline (2010)

� Successful repossession and new leases to Danish and Tunesian operators

� A320-200 / Spanish Airline (2012)

� Successful repossession and new lease to Italian operator

� Four B737-800 / US Airline in Chapter 11 (2011-2012)

� Despite chapter 11, successful maintenance of lease and financing obligations

� Three ATR 72-200 and one Bombardier CRJ200; Insolvency of a Danish airline (2013/13)

� Sale of ATR 72 to a Danish charter airline

� Sale of CRJ-200 to a Lithuanian investor and new lease to a Russian operator

� Two Airbus A319; Leasing to an Indian airline stopped due to licence withdrawal (2012/13)

� Signing of termination agreement and transfer of aircraft; New lease to a Thai resp. a Serbian operator

January 2014

� Current Total Portfolio by Year of Construction

� Cover Pool by Year of Construction

� Current Total Portfolio by Type of Aircraft:approx. EUR 6.8 bn. (649 Aircrafts financed)

� Cover Pool by Type of Aircraft:approx. EUR 1.24 bn. (133 Airplanes in Cover Pool)

NORD/LB Aviation Portfolio I

As of 31 December 2013


Narrowbodies51%

Widebodies20%

Ultra Large Aircraft

12%

Regional Jets7%

Freighter8%

Turboprop2%

Narrowbodies51%

Widebodies12%

Ultra Large Aircraft

5%

Regional Jets9%

Freighter17%

Turboprop6%

from 2014on 6%

2008 - 201359%

2003 - 2007 24%

2002 and earlier11%

2008 - 201367%

2003 - 200728%

2002 and earlier

5%

22

January 2014

LTV 50 - 6059%

LTV 40 – 4923%

LTV 30 – 3911%

LTV <307%

� Current Total Portfolio by Type of Financing

� Cover Pool by Type of Financing

� Current Total Portfolio by LTV

� Cover Pool by LTV


NORD/LB Aviation Portfolio II

Operating Lease57%

Direct Loan15%

Finance Lease 13%

Export-Financing

13%

Portfolio-Financing

2%

Direct Loan35%

Finance Lease

6%

Operating Lease59%

LTV >8915%

LTV 75 - 8928%

LTV 60 - 7425%

LTV 50 - 5921%

LTV 25 - 49 8%

LTV <253%

23

January 2014

B++ to B--83%

C++ to C--14%

D++ to D--2%

E++ to E--1%

24

� Current Total Portfolio by AVAC*-Rating

� Cover Pool by AVAC*-Rating

� Current Total Portfolio by Register Location

� Cover Pool by Register Location

* AVAC: Aircraft Value AnalysisCompany, Glos (GBR)


NORD/LB Aviation Portfolio III

USA19%

VAE11%

Germany9%

Ireland9%China

7%

Singapore6%

France 5%

Others34%

USA37%

UK20%

Germany19%

Ireland9%

France9%

Others6%

B++ to B--66%

C++ to C--20%

D++ to D--11%

E++ to E--3%

January 2014 25

� Current Total Portfolio by Operator (Top 5)

� Cover Pool by Operator (Top 5)

� Current Total Portfolio by Aircraft Model (Top 10)

� Cover Pool by Aircraft Model (Top 10)

German

Airlines

approx 18,3%

German

Airlines

approx.. 9%


NORD/LB Aviation Portfolio IV

Emirates6%

Aerologic3%

Atlas Air2% Air France

2%Air

Canada2%United

2%

Singapore Airlines

2%

Others81%

Aerologic10%

Air France9%

Atlas Air7%

Easy Jet6%

FlyBe5%

Others63%

B737-80023%

A320-20016%

A380-8007%

B777-200LRF6%

A330-2005%

B747-8F4%

E170/1754%

Others35%

A320-20016%

B737-80014%

B777-200LRF10%

A319-1008%

B747-8F7%

A330-2006%

Dash Q-4005%

A380-8005%

E170/1755%

Others24%

January 2014

Agenda





Appendix

Contacts

26

January 2014 27


Summary Characteristics

� Cover Assets

� NORD/LB aviation loans secured by eligible Aircraft Mortgages

� Aircraft Mortgages

� Foreign (non-German) Aircraft Mortgages: Legal Due Diligence required

� Compliance list (February 2014): CAN, DEN, FIN, FRA, GER, GBR, IRL, KOR, MYS, LUX, NED, NOR, NZL, SGP, SUI, USA

� On the agenda: Australia, Brazil

� Insurance Protection

� 110% of loans’ nominal values

� Written by specialist insurers such as Willis (leading global aircraft insurer)

� Age of Aircraft

� Maximum 20 years, Average ca. 4.5 years

� Eligible Loans

� Amortizing loans with a a maximum tenor of 20 years

� LTV Limits [governed by German legal directive for the calculation of aircraft lending values (Flugzeugbeleihungswertermittlungsverordnung)]

� LTV maximum of 60% of the aircraft lending value

� Value opinion by independent and external surveyors

� Lending value not to exceed any of the following three parameters:

▫ Current market value

▫ 10-year average value

▫ Base value under balanced market conditions (simulated value)

January 2014 28

� Highest Degree of Security

� Top Quality

� Attractive Spread

Highest Degree of Security at Very Attractive Conditions


� NORD/LB is the only issuer of this type in the premium „Pfandbrief“ segment� Real Pfandbrief based on the German Pfandbrief Act (PfandBG)

� Security� Regulation of Aircraft Covered Bonds in PfandBG in line with all other German

Pfandbriefe� Compliance with legal requirements for eligibility, overcollateralization, bankruptcy

remoteness, etc.� Comparable security as with NORD/LB Mortgage or Public Sector Pfandbriefe by virtue

of German Pfandbrief Act requirements and quality of the cover pool� Daily performance of currency stress testing regarding currency mismatch USD/EUR

� Quality� Experienced and well established issuer� Outstanding expertise in Aviation Finance� Moody‘s rating at „A2“ – linked to current NORD/LB Senior Ratings

▫ Limited historical data relating to the effects of potential Aviation Finance losses on cover pools

▫ Historically higher volatility of asset values in comparison with German mortgage data� Excellent quality of the cover pool (LTVs, regions, operators and aircraft types)� 82% of cover assets with a minimum AVAC-Rating of „B“ � Significantly lower loss rates for aircraft when compared to cover assets for other

Covered Bonds� Return

� Investor opportunity to acquire a product which is significantly undervalued in terms of rating at a compensating, attractive spread

� Spread expected in between NORD/LB Mortgage Pfandbrief and Senior Unsecured

January 2014

Agenda





Appendix

Contacts

29

January 2014 30

Appendix

Special Supervision of Pfandbrief Banks on the Basis of the PfandBG

Source: vdp Verband Deutscher Pfandbriefbanken –Der Pfandbrief 2011/2012

60% of the mort-

gage lending value

100%

of the loans

60% of the mort-

gage lending value

60% of the mort-

gage lending value

Mortgage Loans

Public Sector Loans

Ship Finance

Aircraft Finance

Mortgage Pfandbrief

Public Pfandbrief

Ship Pfandbrief

Aircraft Pfandbrief

Cover pool monitor audits cover assets

KWG

KWG

PfandBG

January 2014 31

Positive Earnings in line of expectations

Appendix

* Some previous year figures were adjusted

Income statement (€m) 30 Sep 2013* 30 Sep 2012* 31 Dec 2012* 31 Dec 2011* 31 Dec 2010*

Net interest income 1,476 1,503 1,957 1,762 1,662

Loan loss provisions -642 -352 -598 -197 -642

Net commission income 124 125 168 166 197

Profit/loss from financial instruments at fair value incl. hedge accounting

54 -114 -122 69 115

Profit/loss from financial assets 2 -11 -5 -48 82

Profit/loss from investments accounted for using the equity method 24 -15 -14 - -73

Administrative expenses 852 824 1,158 1,091 1,070

Other operating profit/loss -21 -68 -99 69 48

Earnings before reorganisation and taxes 165 244 129 730 319

Reorganisation expenses -57 -35 -53 - -

Earnings before taxes 108 209 76 730 319

Income taxes -4 68 -4 194 5

Consolidated profit 112 141 80 536 314

January 2014 32

Active Balance Sheet Management

Appendix

* Some previous year figures were adjusted, see Annual Report 2012, Note (2)

Total Assets (in bn. EUR) 30 Sep 2013 31 Dec 2012 *

Total assets 204.7 225.6

Loans and advances to customers 108,9 114,6

Loans and advances to banks 29,0 34,4

Financial assets 48,2 52,4

Liabilities to customers 54,4 56,0

Equity 7,9 7,7

� Declining total assets as

planned

� Customer loans are the

largest item (53.2%) of total

assets; further increase is

expected during the year

� Focus on core business =>

Reduction of total assets

should not lower profit or

total volume of customer

business

January 2014

Positive Revenue balance loss from the shipping portfolio


€mas at 30 Sep 2013

Earnings before reorganisation and taxes

75

33

January 2014 34

Strong capital ratios. Risk-weighted assets down

Appendix

8.70%7.86%

9.44%

10.85%11.34%

9.70%

11.05%

12.65%13.84%

14.16%

6,931 6,829

8,0058,451

8,028

2009 2010 2011 2012 30.9.2013

92,57586,850

84,80077,863

70,762

2009 2010 2011 2012 30.9.2013

Risk-weighted assets Core capital (for solvency reasons)

2009 2010 2011 2012 30.9.2013

€m €m

Core capital ratioin %

Total capital ratio

in %

acc. to SolvV

January 2014

Agenda

NORD/LB Strategy and Business Modell




Appendix

Contacts

35

January 2014

Contact Details

Contacts

Tel. +49 (511) 361 45 94 Fax +49 (511) 361 98 45 94

Matthias Reuleaux

Tel. +49 (511) 361 2009 Tel. +49 (511) 361 6576Fax: +49 (511) 361 98 2009 Fax +49 (511) 361 98 [email protected] [email protected]

Head of Primary Products

Carsten Tegtmeier

[email protected]

Shipping and Aviation Finance

Norddeutsche Landesbank Girozentrale

Friedrichswall 10

D-30159 Hannover

Germany

Imprint

Tammo Reimann

Tel. +49 (511) 361 4338Fax: +49 (511) 361 98 [email protected]

Head of Investor Relations

Gabriele Bödeker

36

January 2014

Disclaimer I

This presentation and the information contained herein, as well as any additional documents and explanations (together the “material“), are issued byNORDDEUTSCHE LANDESBANK GIROZENTRALE (“NORD/LB”).

This presentation contains certain forward-looking statements and forecasts reflecting NORD/LB management’s current views with respect to certain future events.These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without, limitation, those regardingNORD/LB’s future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where NORD/LBparticipates or is seeking to participate. The NORD/LB Group’s ability to achieve its projected results is dependent on many factors which are outside management’scontrol. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-lookinginformation involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. The following important factorscould cause the Group’s actual results to differ materially from those projected or implied in any forward-looking statements:

� the impact of regulatory decisions and changes in the regulatory environment;

� the impact of political and economic developments in Germany and other countries in which the Group operates;

� the impact of fluctuations in currency exchange and interest rates; and

� the Group’s ability to achieve the expected return on the investments and capital expenditures it has made in Germany and in foreign countries.

The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. All forward-looking statements included herein are based on information available to NORD/LB as of the datehereof. NORD/LB undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events orotherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to NORD/LB or persons acting on ourbehalf are expressly qualified in their entirety by these cautionary statements.

The material is provided to you for informational purposes only, and NORD/LB is not soliciting any action based upon it. The material is not intended as, shall not beconstrued as and does not constitute, an offer or solicitation for the purchase or sale of any security or other financial instrument or financial service of NORD/LB orof any other entity. Any offer of securities, other financial instruments or financial services would be made pursuant to offering materials to which prospectiveinvestors would be referred. Any information contained in the material does not purport to be complete and is subject to the same qualifications and assumptions, andshould be considered by investors only in light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in thedefinitive offering materials. The information herein supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions, includingany offering materials. NORD/LB is not obliged to update or periodically review the material. All information in the material is expressed as at the date indicated in thematerial and is subject to changes at any time without the necessity of prior notice or other publication of such changes to be given. The material is intended for theinformation of NORD/LB´s institutional clients only. The information contained in the material should not be relied on by any person.

Disclaimer

37

January 2014

Disclaimer II

In the United Kingdom this communication is being issued only to, and is directed only at, intermediate customers and market counterparties for the purposes of theFinancial Services Authority’s Rules ("relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. To theextent that this communication can be interpreted as relating to any investment or investment activity then such investment or activity is available only to relevantpersons and will be engaged in only with relevant persons.

Viewing the following material involves no obligation or commitment of any kind by any person. Viewers of he following material are not to construe informationcontained in it as a recommendation that an investment is a suitable investment or that any recipient should take any action, such as making or selling an investment,or that any recipient should refrain from taking any action. Prior to making an investment decision, investors should conduct such investigations as they considernecessary to verify information contained in the relevant offering materials and to determine whether the relevant investment is appropriate and suitable for them. Inaddition, investors should consult their own legal, accounting and tax advisers in order to determine the consequences of such investment and to make anindependent evaluation of such investment. Opinions expressed in the material are NORD/LB´s present opinions only. The material is based upon information thatNORD/LB considers reliable, but NORD/LB does not represent, guarantee, or warrant, expressly or implicitly, that the material or any part of it is valid, accurate orcomplete (or that any assumptions, data or projections underlying any estimates or projections contained in the material are valid, accurate or complete), or suitablefor any particular purpose, and it should not be relied upon as such. NORD/LB accepts no liability or responsibility to any person with respect to, or arising directly orindirectly out of the contents of or any omissions from the material or any other written or oral communication transmitted to the recipient by NORD/LB.

Neither the material nor any part thereof may be reproduced, distributed, passed on, or otherwise divulged directly or indirectly by the party that receives it, to anyother person without the prior written consent of NORD/LB.

The distribution of the material in certain jurisdictions may be restricted by law and persons into whose possession the material comes are required by NORD/LB toinform themselves about, and to observe, any such restrictions.

This presentation does not constitute an offer to sell or the solicitation of an offer to purchase or subscribe for any securities of NORD/LB in the United States. No partof this presentation should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe forany securities of NORD/LB. Any offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from NORD/LB andwill contain detailed information about NORD/LB, its management and its financial statements. None of NORD/LB’s securities may be offered or sold in the UnitedStates, without registration under the U.S. Securities Act of 1993, as amended, or pursuant to an exemption from registration therefrom.

By viewing the following material, the recipient acknowledges, and agrees to abide by, the aforementioned.

Disclaimer

nord/lb‘s aircraft covered bond (flugzeugpfandbrief) · market value in bn. usd 12 expected...

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