OeKB Group Annual Report 2012

The complete perspective.
Annual Report
2012
O e s t e r r e i c h i s c h e K o n t r o l l b a n k G r o u p
2011 2010
34,252
527
85
119
91
28.85
47.45
5,160
858
50,000
40,650
3,833
89
333
353
4,971
34,075
31,401
4,441
9,843
5,402
41,965
45,000
33,745
8,230
18,210
273,420
813,240
156/20,217
35,802
569
79
93
72
21.02
50.24
3,869
948
50,000
38,508
3,859
190
116
36
4,413
33,246
29,429
2,924
4,896
1,972
26,787
45,000
31,658
6,294
17,007
288,347
852,502
167/22,398
398
32,768
662
79
107
82
20.74
51.12
5,135
972
50,000
34,836
3,637
229
154
65
7,085
28,054
24,827
6,846
10,381
3,535
65,825
45,000
30,015
10,567
11,252
311,701
803,527
157/22,382
EUR million (except lines beginning with Number of)
OeKB Highlights
2012 2009
397
37,978
599
78
65
50
13.64
50.45
4,658
1,000
50,000
37,058
3,786
219
147
55
5,948
32,244
28,362
5,026
6,093
1,067
54,507
45,000
33,695
12,504
13,205
304,490
919,543
162/22,322
Average number of employees of the OeKB Group
Total assets at 31 December
Equity including minority interest
Operating profit
Profit before tax
Profit for the year attributable to shareholders of the parent
Return on equity in %
Cost/income ratio in %
New guarantee contracts issued
Number of new guarantee contracts issued
Aggregate guarantee exposure limit, at 31 December
Utilisation of the guarantee exposure limit at 31 December
Number of guarantees in place
Premium and interest income
1
Gross claims paid by the Guarantor
Recoveries on claims paid
New commitments issued
Total lending commitments outstanding at 31 December
Of which disbursements outstanding
Loan funds disbursed
Repayments received
Increase/(decrease) in net loans outstanding
Total funds used under the Export Financing Scheme
Limit on aggregate guarantee exposure under Export Financing Guarantees Act
Total new guarantees issued
Bond market Federal bonds administered by OeKB
CSD.Austria EUR/ATS bonds
DS.A volume of transactions (nominal, internal, double counting)
Number of depositors/classes of securities
385 396
Guarantees of the Republic of Austria under the Export Guarantees Act
OeKB Export Financing Scheme
Capital Market Services
Consolidated financial statements
1
Beginning in 2012, this item is stated net of deferred up-front premiums.
Oesterreichische
Kontrollbank Aktiengesellschaft
Annual Report 2012
Annual Report 2012
Why does it say
The Complete Perspective
on these reports?
The reason is that our aim at OeKB and the
Group companies is always to balance meticulous
attention to detail with a firm grasp of the big
picture, in all its intricacy and interconnectedness:
The export markets and their risk situation, the
capital and energy markets, and the rapidly growing
wealth of news and data.
With this special combination of wide-angle vision
and close-up precision, we deliver services that
help our clients achieve success in a complex world,
serving everyone from public sector principals, to
exporters and outward foreign investors, to capital
market participants and energy suppliers.
3
Annual Report 2012
Amount is zero.
0 Amount is smaller than half of the stated unit.
Totals may not add due to rounding.
Legend for data presented in
this report
Contents
OeKB Group consolidated financial statements 2012 52
Auditors Report 96
Page
Group management report 2012 39
Corporate governance
1 Organisational structure of OeKB 6
2 Supervisory bodies 8
3 Corporate governance 10
4 Shareholders and share capital 12
5 Supervisory Board report 13
Portrait of the OeKB Group
1 Services for exports and outward foreign investment 14
2 Capital Market Services 25
3 Energy Market Services 34
4 Information Services and IT Services 35
5 Sustainability at OeKB 37
Letter from the Executive Board 5
5
Annual Report 2012
Letter from the Executive Board
Dear Reader
In 2012 the world economy remained deeply affected by the European debt crisis, leading to an econo-
mic slowdown in emerging markets as well. Against this backdrop, the Group companies in OeKBs
Export Services business provided the Austrian export industry with the tried and tested services that
strengthen its international competitiveness.
To further enhance support for large, medium-sized and small companies, the cover terms for export
guarantees were significantly improved in several ways, including higher percentages of cover, higher
transaction limits and longer credit periods for business in more than 50 countries. In the system of ex-
port guarantees, a significant revenue surplus was again generated for the Republic of Austria in 2012.
The two private credit insurers held their own in a very difficult market setting: PRISMA Kreditversiche-
rungs-AG consolidated its position as market leader, and emerging markets specialist OeKB Versiche-
rung AG was successful with the six-month limit guarantee, a new product that offers customers the
peace of mind of non-cancellable cover under global policies.
In the middle of 2012 the OeKB Group considerably simplified customers access to short-term export
financing: Since then, Exportfonds, a subsidiary that in 2012 increased its total loans outstanding to
more than one billion euros, provides revolving credit facilities for all small and medium exporters (via
their banks), while all large exporters are serviced by OeKB AG.
Oesterreichische Entwicklungsbank AG (OeEB), the development bank, achieved renewed significant
growth in its investment financing of private sector projects in developing and newly industrialised
countries.
In the year under review, OeKB developed a central IT solution for the Austrian financial market for the
filing of mandatory disclosures by Austrian fund companies under the Investment Fund Act. Another in-
novative product, the Bilanz Transfer system for the electronic sharing of accounting information, was in
2012 nominated for the eAward, an Austrian IT prize.
The importance of authoritative information on market opportunities and market potential in uncertain
economic times is evident in the strong demand for the information broking and research of OeKBs
Information Services and for the quarterly leading indicators of the OeKB Business Climate Index for
Central and Eastern Europe.
Complementing this Annual Report, OeKB publishes the Export Services Annual Review, which docu-
ments the significance of OeKB services to exporters and outward foreign direct investors. Our 2012
Sustainability Report with this years focus on sustainable investment describes how we combine com-
mercial success with environmental and social responsibility, for the long term.
Johannes Attems Rudolf Scholten
6
Annual Report 2012
Executive Board
1 Organisational structure of OeKB
Johannes Attems
(born 5 October 1947)
Member of the Executive Board [since 1 June 1988]
Bank and Business Information
EDP Systems and Organisation
International Finance
Personnel Department
Bond Market and
Notification Office under the Capital Markets Act
Rudolf Scholten
(born 3 November 1955)
Member of the Executive Board [since 1 May 1997]
Controlling, Reporting and Payments
Export Guarantees Claims Management
Export Guarantees
International Relations and Services
Export Guarantees Project Underwriting
Credit Department
Organisation, Construction,
Environmental Issues and Security
Project and Environmental Analyses
Accounting
Guarantees for Export Acceptance Credits
The Executive Board is
collectively responsible for
Internal Audit/Group Internal Audit
Risk Controlling Department
Secretariat of the Executive Board/Corporate Communications
Legal Affairs
The employment contract of Johannes Attems runs until 31 December 2014;
that of Rudolf Scholten runs until 30 April 2017.
Annual Report 2012
7
Senior officers
Bank and Business Information
Angle Eickhoff, Head of Department
Jutta Leitner, Deputy Head of Department
Controlling, Reporting and Payments
Robert Anderl, Head of Department
Michael Meier, Deputy Head of Department
Export Guarantees Claims Management
Christine Dangl, Head of Department
Peter Gaspari, Deputy Head of Department
Norbert Wokusch, Deputy Head of Department
Export Guarantees
International Relations and Services
Sylvia Doritsch-Isepp, Head of Department
Gerhard Kinzelberger, Deputy Head of Department
Heidemarie Ptacnik
Export Guarantees Project Underwriting
Ferdinand Schipfer, Head of Department
Erwin Marchhart, Deputy Head of Department
Karin Roitner, Deputy Head of Department
Johannes Pflgl
EDP Systems and Organisation
Lech Ledchowski, Head of Department
Franz Macsek, Deputy Head of Department
Manfred Heppe
Michael Nedved
International Finance
Waltraut Burghardt, Head of Department
Anton Ebner, Deputy Head of Department
Anish Gupta
Elisabeth Schneider
Monika Seitelberger
Internal Audit/Group Internal Audit
Karl Sterrer, Head of Department
Gottfried Stocker, Deputy Head of Department
E-mail: first_name.last_name@oekb.at
Telephone: +43 1 531 27-0
Georg Zinner, Head of Department
Christian Krbler, Deputy Head of Department
Wolfgang Aubrunner
Peter Felsinger
Norbert Leitgeb
Gerhard Mayer
Credit Department
Dieter Nell, Head of Department
Harald Klee, Deputy Head of Department
Ilse Czermak
Hans-Rainer Miehl
Organisation, Construction,
Environmental Issues and Security
Eveline Balogh, Head of Department
Thomas Bammer, Deputy Head of Department
Personnel Department
Josef Feldhofer, Head of Department
Martina Ganzera-Veraszto, Deputy Head of Department
Project and Environmental Analyses
Werner Schmied, Head of Department
Karl Lenauer, Deputy Head of Department
Accounting
Angelika Sommer-Hemetsberger, Head of Department
Markus Schmidt, Deputy Head of Department
Gerhard Polterauer
Bond Market and
Notification Office under the Capital Markets Act
Erich Weiss, Head of Department
Maria Kucera, Deputy Head of Department
Risk Controlling
Karl Heinz berlackner, Head of Department and CRO
Christoph Schwrzler, Deputy Head of Department
and Deputy CRO
Gerda Klaus, Deputy Head of Department
Corporate Communications
Peter Gumpinger
Guarantees for Export Acceptance Credits
Wolfgang Pitsch, Head of Department
Ulrike Zabini, Deputy Head of Department
Gabriele Dietrich-Oppolzer
Erna Scheriau
8
Annual Report 2012
2 Supervisory bodies
Supervisory Board
Erich Hampel (born 1951)
Term of office: 1 January 2010 to AGM 2016
Chairman
Walter Rothensteiner (born 1953)
Term of office: 2 August 1995 to AGM 2016
First Vice-Chairman
Chief Executive Officer,
Raiffeisen Zentralbank sterreich
Aktiengesellschaft, Vienna
Franz Hochstrasser (born 1963)
Term of office: 19 May 2009 to AGM 2016
Second Vice-Chairman
Deputy Chief Executive Officer,
Erste Group Bank AG, Vienna
Helmut Bernkopf (born 1967)
Global Head of Private Banking,
UniCredit S.p.A., Milan
Peter Bosek (born 1968)
Member of the Executive Board,
Erste Bank der oesterreichischen Sparkassen AG, Vienna
Michael Glaser (born 1967)
UniCredit Bank Austria AG, Vienna
Dieter Hengl (born 1964)
Friedrich Hondl (born 1960)
Term of office: 15 December 2009 to 15 March 2012
Reinhard Karl (born 1964)
Raiffeisenlandesbank Niedersterreich-Wien AG, Vienna
Michael Mendel (born 1957)
sterreichische Volksbanken-Aktiengesellschaft, Vienna
Herbert Messinger (born 1961)
Term of office: 18 December 2012 to AGM 2016
BAWAG P.S.K. Bank fr Arbeit und Wirtschaft und
sterreichische Postsparkasse Aktiengesellschaft, Vienna
Gernot Mittendorfer (born 1964)
Term of office: 25 May 2011 to 22 May 2012
Erste Group Bank AG, Vienna
Heimo Penker (born 1947)
BKS Bank AG, Klagenfurt
Christoph Raninger (born 1972)
Term of office: 25 May 2011 to 31 October 2012
Angelo Rizzuti (born 1961)
Herbert Stepic (born 1946)
Term of office: 3 April 1992 to AGM 2015
Raiffeisen Bank International AG, Vienna
Susanne Wendler (born 1967)
Term of office: 25 May 2011 to 22 May 2012
Robert Zadrazil (born 1970)
Franz Zwickl (born 1953)
AGM = Annual General Meeting
Annual Report 2012
9
Employee Representatives:
Martin Krull (born 1976)
Since 14 March 2002
Chairman of the Staff Council
Erna Scheriau (born 1959)
Since 1 April 2001
Vice-Chairman
Alexandra Griebl (born 1977)
Since 14 March 2010
Anish Gupta (born 1966)
Since 14 March 2006
Christian Leicher (born 1968)
Since 7 July 2009
Claudia Richter (born 1964)
Since 11 July 2002
Otto Schrodt (born 1949)
Since 14 March 1998
Markus Tichy (born 1971)
Since 1 July 2011
The term of office for current employee
representatives ends on 13 March 2014.
Government commissioners
under section 76 Austrian Banking Act
Harald Waiglein (born 1967)
Commissioner [since 1 July 2012]
Austrian Ministry of Finance
Thomas Wieser (born 1954)
Commissioner [1 January 2011 to 29 February 2012]
Johann Kinast (born 1963)
Deputy Commissioner [since 1 March 2006]
The above government commissioners are also
representatives of the Austrian Minister of Finance under
section 6 Export Financing Guarantees Act.
Government commissioners
under section 27 of the Articles of Association
(supervision of bond cover pool)
Johannes Ranftl (born 1948)
Commissioner [since 1 December 1996]
Ministerialrat, Austrian Ministry of Finance
Edith Wanger (born 1955)
Deputy Commissioner [since 1 June 1997]
Amtsdirektorin, Austrian Ministry of Finance
Independent auditor
(for the 2012 financial year)
KPMG Austria AG
Wirtschaftsprfungs- und
Steuerberatungsgesellschaft, Vienna
Certified Public Accountants
The auditor within the meaning of the Austrian Stock Corporation
Act (Aktiengesetz) also acts as the bank auditor for the purposes
of the Austrian Banking Act (Bankwesengesetz).
Legal advisers
Pch Krassnigg
Rechtsanwlte GmbH, Vienna
Peter Pch, Lawyer, Legal Adviser
(Information current as of 28 February 2013)
10
Annual Report 2012
OeKB AG is not a listed company, but is nevertheless
guided by the Austrian Code of Corporate Governance
to the extent that the Codes principles are applicable.
For non-listed stock corporations, L-rules (rules
based on legal requirements) are to be interpreted
as C-rules (comply-or-explain rules).
The Austrian Code of Corporate Governance, first pre-
sented to the public in 2002, is reviewed and revised
annually in the context of national and international
developments. The most recent amendments to the
Code took effect in January 2012. They focused on
the development of the diversity criterion and new
rules to improve cooperation between supervisory
boards and auditors. The Code in its full wording is
available at www.corporate-governance.at.
Cooperation between the
Supervisory Board and Executive Board
The Executive Board provides the Supervisory Board
with regular, prompt and comprehensive reports on all
relevant business developments, including the risk
situation and risk management at OeKB and significant
Group companies. The aim of good corporate gover-
nance in managing the Groups business is pursued
through open discussion and communication between
and within the Executive Board and Supervisory
Board.
The Executive Board sets the Groups strategic
direction together with, and subject to the approval of,
the Supervisory Board and regularly discusses the
status of strategy implementation with the latter
Board. The Supervisory Board meets at least four
times per financial year.
Executive Board
The two-member Executive Board of OeKB AG is
responsible for managing the Group. Its decisions
comply with all relevant laws, the Articles of Asso-
ciation and the Executive Boards internal rules of
procedure. The division of responsibilities and the
internal cooperation of the Executive Board are set
out in its internal rules of procedure.
The Executive Boards compensation includes both
fixed and performance-based variable components.
The variable portion can represent up to 40% of total
compensation. The design of the variable compen-
sation policy ensures that the incentive structure is
aligned with the long-term interests of OeKB (see note
54 to the consolidated financial statements). OeKB
maintains directors and officers liability insurance
(D&O) for members of the Executive and Supervisory
Boards. The disclosure under L-rule 29 of the Austrian
Code of Corporate Governance concerning the aggre-
gate compensation of the Executive Board is omitted
in reliance on section 266(7)b Austrian Commercial
Code.
Supervisory Board
The Supervisory Board is responsible for supervising
the Executive Board and supporting it in managing
the Group, particularly in making decisions of funda-
mental importance. At the end of the year under
review, the Supervisory Board was composed of 15
shareholder representatives and eight employee
representatives. As a result of an agreement among
shareholders, the number of board members deviates
from C-rule 52, which stipulates that supervisory
boards should have a maximum of ten members,
excluding the employee representatives. The member-
ship of the Supervisory Board is presented from
page 8 onward.
The Supervisory Boards remuneration is determined
at the Annual General Meeting and is shown in note
54 to the consolidated financial statements. The
employee representatives perform their responsi-
bilities on the Supervisory Board in the course of
their ordinary employment.
3 Corporate governance
Annual Report 2012
11
The Supervisory Board has formed an Audit Commit-
tee and a Working Committee. The members of these
committees are Erich Hampel (Chairman and Financial
Specialist), Walter Rothensteiner and Martin Krull.
The Audit Committee met twice in 2012.
The Audit Committee is responsible primarily i) for
the auditing, and preparation of the adoption, of the
company financial statements, proposal for the
appropriation of profit, and company management
report; ii) for the auditing of the consolidated financial
statements and Group management report; and iii) for
recommending to the Supervisory Board the choice
of independent auditors. The Audit Committee is
also required to monitor the effectiveness of the
enterprise-wide internal audit system and the risk
management system.
The Working Committee oversees borrowing opera-
tions to fund the Export Financing Scheme; lending
under the Export Financing Scheme; lending under
section 3 of the internal rules of procedure (related
debt rescheduling facilities and purchase of accounts
receivable); and the use of the amounts in the interest
stabilisation account.
A Compensation Committee was formed to approve
compensation policy and supervise its implementation
in practice. The members of this committee are Erich
Hampel, Walter Rothensteiner, Franz Hochstrasser,
Martin Krull and Erna Scheriau.
Transparency and auditing
Openness and transparency in communications with
its shareholders and other stakeholders is particularly
important to OeKB. This priority was upheld in 2012
by the Executive Board and the Investor Relations
and Corporate Communications departments. In
addition to other communication channels, up-to-date
information on the Group and its business segments is
always available on the OeKB website at www.oekb.at.
OeKB promotes the development of women in all
management positions (L-rule 60).
According to the rules 4 to 6 of the Austrian Code of
Corporate Governance, the motions submitted to the
General Meetings of shareholders and all documents
including shareholder motions and countermotions,
as well as the candidates nominated for election to
the Supervisory Board, and the resolutions passed at
the General Meetings, should ordinarily be published
on the website. However, OeKB considers such
publication to be inappropriate, as this information
is reserved for shareholders. Therefore only share-
holders may view these documents and the right to
confidentiality of shareholders that submit motions
must be respected.
The company financial statements, company manage-
ment report, consolidated financial statements and
Group management report were audited by KPMG
Austria AG Wirtschaftsprfungs- und Steuerberatungs-
gesellschaft, the auditor appointed by the Annual
General Meeting. The independent auditors report is
found in the section Auditors Report.
12
Annual Report 2012
4 Shareholders and share capital
OeKB AG is a financial services provider in the
Austrian banking industry. OeKB was founded on
22 January 1946 to provide specialised banking
services. It has its registered office in Vienna
(Company Register Number FN 85749 b, Vienna
Commercial Court).
Share capital of EUR 130 million
Oesterreichische Kontrollbank Aktiengesellschaft
(OeKB or OeKB AG), an Austrian public limited
company, has a share capital of EUR 130 million.
In view of the special functions performed by OeKB,
its shares are registered ordinary shares that are
not listed on the Vienna Stock Exchange. The shares
may be transferred only with the consent of the
Supervisory Board.
Number of shares held Shareholding in % Shareholders
CABET-Holding-GmbH, Vienna
(UniCredit Bank Austria Group)
Erste Bank der oesterreichischen Sparkassen AG, Vienna
Schoellerbank Aktiengesellschaft, Vienna
AVZ Finanz-Holding GmbH, Vienna
Raiffeisen Zentralbank sterreich Aktiengesellschaft, Vienna
Raiffeisen OeKB Beteiligungsgesellschaft mbH, Vienna
Oberbank AG, Linz
Bank fr Tirol und Vorarlberg Aktiengesellschaft, Innsbruck
BKS Bank AG, Klagenfurt
sterreichische Volksbanken-Aktiengesellschaft, Vienna
217,800
142,032
113,432
72,688
72,600
71,456
44,792
44,000
34,224
26,888
26,888
13,200
880,000
24.750
16.140
12.890
8.260
8.250
8.120
5.090
5.000
3.890
3.055
3.055
1.500
100.000
Ownership structure of OeKB AG (at 31 December 2012)
Annual Report 2012
13
5 Supervisory Board report
In 2012 the Supervisory Board, the Audit Committee and the Working Committee supervised the
management and approved its actions, on the basis of the regular reports made by management in
regular meetings as well as in writing, and through repeated personal contact.
The consolidated financial statements for 2012 and the Group management report presented
herein, as well as the 2012 company financial statements and management report, of Oesterrei-
chische Kontrollbank AG were audited by KPMG Austria AG Wirtschaftsprfungs- und Steuer-
beratungsgesellschaft, Vienna. The financial statements received an audit opinion as being in
accordance with the legal requirements.
The Supervisory Board and its Audit Committee have reviewed the reports presented by the
Executive Board on the result of the audit for the 2012 financial year, and the proposal for the
appropriation of profit. The final result of this review did not give rise to objections.
The Supervisory Board in its meeting on 20 March 2013 approved the company financial
statements for 2012, which were thereby adopted, and declared its agreement with the Executive
Boards proposal for the appropriation of profit. The Supervisory Board has approved the consolida-
ted financial statements and Group management report.
For the excellent work done during the year, the Supervisory Board would like to express its
gratitude and appreciation to the Executive Board and every employee of the OeKB Group.
Vienna, March 2013
For the Supervisory Board
Erich Hampel
Chairman
14
Annual Report 2012
1 Services for exports and outward foreign investment
1.1.1 Key programme features and background
The guarantee system is based on the provisions of
the Export Guarantees Act and the respective regu-
lation issued by the Federal Minister of Finance. The
contractual relations between the Republic of Austria
and the guarantee holders are set out in the general
terms and conditions (General Business Conditions)
for guarantees of the Republic of Austria under the
Export Guarantees Act, and in the respective guaran-
tees or aval endorsements themselves.
Guarantees are issued in compliance with the guide-
lines, directives and regulations of international
agreements of the OECD, the EU and the Berne Union.
Detailed statistics and the legal requirements
concerning the types of guarantees under the Export
Guarantees Act and regarding OeKBs Export
Financing Scheme are provided in the OeKB Export
Services Annual Review. More information on OeKBs
Export Services is available at www.oekb.at.
Cover for non-marketable risks
OeKB as the agent of the Republic of Austria offers
cover for non-marketable risks, focusing on exports
of capital goods and Austrian direct investment
abroad.
In contrast, short-term revolving cover is provided by
the private market. In this market segment, two Group
subsidiaries, OeKB Versicherung AG and PRISMA
Kreditversicherungs-AG, offer export credit insurance.
1.1.2 Product and service developments in 2012
The trajectory of the world economy in 2012 was to a
significant extent shaped by the debt crisis in Europe.
Especially in the second half of the year, the down-trend
for European countries became more pronounced and
led to heightened uncertainty that also affected the
emerging markets.
In this environment, OeKB provided time-tested
support to exporters through its services.
1.1 Management of Austrian federal government guarantees
by OeKB
Small, medium and large enterprises that are expor-
ters or are investing abroad can minimise their
financial risks by obtaining Austrian government
export guarantees and private export credit insurance,
all through companies of the OeKB Group.
In addition, to be able to offer their foreign buyers
attractive payment terms or to finance their own
direct investments in other countries, companies in
Austria that provide appropriate security can receive
financing from the OeKB Group via their own bank.
15
Annual Report 2012
In the middle of the year, important terms and condi -
tions of cover were improved to further strengthen the
competitiveness of Austrias export industry in inter-
national markets. This included the expansion of avail-
able cover for more than 50 countries through higher
percentages of cover, higher transaction limits and
longer credit periods.
In addition, premiums for transactions backed by bank
security and for bond collateral were made more
attractive. The OeKB website now also shows the
ratings of banks relevant for the calculation of premi-
ums. This makes it even easier for customers to price
out bank-secured transactions using the fee calculator
on the Internet.
As in the previous years, OeKB in 2012 made
numerous visits to customers and intensified its
communication and presentation activity to further
raise companies awareness of the benefits of
Austrias export promotion facilities and to help new
customers initiate cross-border trade transactions.
1.1.3 International involvement
International cooperation and the Berne Union
In todays globalised economy, many projects are
made possible only by the collaboration of partners
from several countries. The dense network of
cooperation agreements woven by OeKB with other
export credit insurers and financial institutions in
recent years facilitates the provision of one-stop insu-
rance and financing for such complex multisourcing
projects.
In 2012, on the heels of the cooperation agreement
concluded in 2011, a master agreement was signed
with the Development Bank of Kazakhstan allowing
support for projects up to a combined total value of
EUR 250 million.
Since 1954, OeKB is a member of the London-based
Berne Union (the International Union of Credit and
Investment Insurers). This global organisation currently
comprises 50 export guarantee and investment gua-
rantee institutions from 40 countries. The aims of
the Berne Union are the coordination of international
trade terms and the extensive sharing of information
between members.
Environmental responsibility
Based on the resolutions of the OECD, environmental
impacts have since the middle of 2000 been given
increased consideration in the evaluation of project
applications and supported projects. The revision of
the relevant OECD Recommendation from June 2012
is intended to help drive further improvement and
greater compliance with rules in areas such as foreign
direct investment and international financial institu-
tions and commercial banks. The impact assessment
procedure used by OeKB to analyse projects environ-
mental and social effects was updated to align it with
new OECD rules.
The goal of the assessment is to identify weaknesses
in terms of impacts on the environment and on people
as early as possible, exert influence towards their
prevention or mitigation if feasible, and thereby help
to promote sustainability awareness in the target
countries. The assessment procedure itself and large
export projects are published on the OeKB website.
They are subject to a peer review within the OECD
and are thus open to public scrutiny.
16
Annual Report 2012
1.1.4 Business in 2012
Economic situation
Growth in Austrian exports eased in 2012 from the
previous year: In total, Austrian exports rose by about
2% from 2011. At the same time, outward foreign
direct investment by Austrian companies showed a
rather subdued trend.
With this backdrop, the number of guarantee and aval
holders serviced in the export guarantees scheme
at the end of the year under review was about 1,200.
OeKB is also in ongoing contact with prospective
exporters and has a continually growing number of
direct contacts with potential outbound foreign direct
investors: Increasingly, end-buyers do not decide on
their suppliers until after they have found attractive
financing options for their projects.
The advisory activity of the customer service
representatives is supplemented by a wide range of
brochures and other written information about the
existing export promotion facilities and improvements
or additions to these products.
OECD Guidelines for Multinational Enterprises
OeKB promotes the awareness and application of the
OECD Guidelines for Multinational Enterprises. Since
2008, all guarantee holders and beneficiaries of
aval endorsements in respect of foreign investment
projects are therefore encouraged to become familiar
with these guidelines and to observe them to the
greatest possible extent in their international
activities.
The 2011 Update brought major advances in this
code of conduct for multinational companies with its
recommendations for responsible business practices
(see http://www.en.bmwfj.gv.at/ExternalTrade/
InvestmentPolicy/Seiten/OECDGuidelinesforMultina-
tionalEnterprises.aspx).
Utilisation of the guarantee exposure limit at 31 December EUR million
2012 2008 2009 2010 2011
34,836
5,135
45,000
50,000 50,000
Limit on aggregate
guarantee exposure
12,063
44,446
5,160
40,650
3,869
38,508
4,658
37,058
17
Annual Report 2012
2010 2011 2012
EUR million (except lines beginning with Number of)
Aggregate guarantee exposure limit, at 31 December
Number of holders of outstanding guarantees (rounded)
Number of guarantees in place
Number of new guarantee contracts issued
New conditional commitments
(i.e., new guarantee offers for prospective underlying transactions)
Premium and interest income
1
Gross claims paid by the Guarantor
Recoveries on claims paid
Amounts written off as unrecoverable (all of which have Maastricht relevance)
Guarantors recoverable claims, at 31 December
2
Net interest rate relief
50,000
34,836
1,200
3,637
972
5,135
2,098
229
154
65
99
898
4
50,000
38,508
1,300
3,859
948
3,869
1,593
190
116
36
92
852
50,000
37,058
1,300
3,786
1,000
4,658
2,029
219
147
55
34
910
Guarantees under the Export Guarantees Act

Aggregate exposure limit of EUR 50 billion,
with utilisation of EUR 34.8 billion
With an exposure limit of EUR 50.0 billion (the limit on
the aggregate liability) under the Export Guarantees
Act, actual exposure at 31 December 2012 from
outstanding guarantees amounted to EUR 34.8 billion,
representing 69.7% utilisation. This compared with
actual exposure of EUR 37.1 billion or 74.1% one year
earlier. Utilisation thus eased by EUR 2.2 billion or
6.0%. The outstanding guarantee with the longest term
covers a credit period ending in the year 2039.
EUR 5.1 billion of new guarantees issued
In the year under review, 972 new guarantees
(guarantees, aval endorsements, and guarantees
issued for OeEB) with a total value of EUR 5.1 billion
were issued by the Republic of Austria under the
Export Guarantees Act, with the credit management
aspects and administrative processing provided by
OeKB as its agent (2011: 1,000 new guarantees with
a total value of EUR 4.7 billion).
The amounts at 31 December 2012 stated above inclu-
ded debt rescheduling guarantees for 14 countries in a
total amount of EUR 518 million (2011: EUR 606 million).
Claim payments and premium income
Premium and interest income in 2012 totalled
EUR 229 million. Gross claims paid (including claim
payments under guarantees for debt rescheduling
agreements) by the guarantor, the Republic of Austria,
amounted to EUR 154 million, while recoveries were
EUR 65 million. EUR 99 million was charged off by the
Republic of Austria in 2012 as unrecoverable or under
debt foregiveness.
In setting the premium levels charged to customers
for the guarantees, the Guarantor does not seek to
realise a profit but to cover the cost of the guarantee
system in the long term.
In 2012 the positive trend of the past several years
continued and guarantee programme income
exceeded net costs by EUR 136 million.
1
Beginning in 2012, this item is stated net of deferred up-front premiums.
2
Beginning in 2012, this item is stated after foreign currency translation effects.
18
Annual Report 2012
1.2.1 Key programme features and background
Known as the Export Financing Scheme, this pro-
gramme serves to provide funding facilities to banks
which in turn extend credit to Austrian exporters or
investors and foreign importers (supplier and buyer
credits for exports, financing for Austrian companies
investments in foreign countries, and export accep-
tance credits). The Export Financing Scheme is also
used for funding the direct lending by OeKB for the
same purposes. The 1995 Amendment to the Export
Guarantees Act allows guarantees to be issued for
untied credits.
Requirements
The credits to banks require a guarantee for the trans-
action or right underlying the financing. The guarantee
must conform to the provisions of the Export Financing
Guarantees Act and be of one of the following types:
I A guarantee by the Republic of Austria under
the Export Guarantees Act
I A guarantee by a credit insurer complying with
the same Act
I A guarantee by Austria Wirtschaftsservice
Gesellschaft mit beschrnkter Haftung
I A guarantee by an international organisation.
In addition, both the rights arising from the guarantees
and the underlying receivables (export or other
receivables) typically must be assigned as security.
The extension of funding to banks through OeKBs
Export Financing Scheme represents an open system
available to domestic and foreign credit institutions.
They must, however, meet the creditworthiness
criteria of OeKB, fulfil the legal requirements regarding
the transactions to be financed and satisfy OeKBs
standard conditions for uniform financing procedures.
The latter applies particularly to collateral management.
International environment
Lending under the Export Financing Scheme is
conducted in adherence to the applicable rules and
guidelines established by international agreements
of the OECD, the EU and the Berne Union.
Financing on commercial terms
The financing for banks supplier and buyer credits
and investment loans is extended at variable and
fixed interest rates. The floating rate is determined by
OeKB for periods of three months at a time and is
based on OeKBs own average cost of funding itself
in the market. In the case of non-revolving loans,
the floating-rate portion of the credit is repaid first;
the fixed interest rate is applied to the longer-term
portion of the facility (base financing).
OeKB also offers pure floating-rate financing of
supplier and buyer credits and investments, based on
3-month EURIBOR.
The financing to banks for the extension of short-
term export credit lines on the basis of government-
endorsed avals is provided at a special floating
interest rate.
Export financing can also be provided in foreign
currency at variable or fixed rates. Supplementing
this, fixed-interest foreign currency financing for
supplier credits is offered on a CIRR basis.
The current interest rates of the Export Financing
Scheme can be viewed on the Internet at
www.oekb.at.
1.2 OeKB Export Financing Scheme
19
Annual Report 2012
Concessional financing for certain projects
Subject to the relevant provisions of the OECD
Arrangement, specific projects may be financed on
concessional terms upon approval by the export
financing committee. The eligibility criteria for soft
loans and the financing terms can be found online at
www.oekb.at.
Developments in products and services
in 2012/2013
Access to short-term export financing from the OeKB
Group was simplified: Revolving credit facilities for
exports of small and medium companies are provided
by sterreichischer Exportfonds GmbH, while large
exporters are serviced by OeKB AG.
The availability (subject to certain conditions) of finan-
cing for supplier and buyer credits in foreign currency
at fixed rates on a CIRR basis was extended to the
end of 2013.
In the soft loan project preparatory programme, two
new applications were received in 2012. One study
was completed and, on its basis, three soft loan
projects related to e-government were evaluated to
date and were positively rated by the committee
responsible.
1.2.2 Business in 2012
The figures in the next table show the utilisation of
OeKBs Export Financing Scheme by the export sector
via banks. At the end of 2012, the programme was in
use by 69 banks and served 1,141 exporters through
about 3,200 export credits.
In the Export Financing Scheme at the end of the year,
there were outstanding total lending commitments
(including conditional commitments) of EUR 28,054
million (2011: EUR 32,244 million). Of this total,
EUR 24,827 million or 88.5% was drawn (2011:
EUR 28,362 million or 88.0%).
The net change from one year earlier was thus a
reduction of EUR 4,190 million or 13.0% in total
commitments (including conditional commitments)
and a reduction of EUR 3,535 million or 12.5% in
disbursements. The outstanding loan agreement with
the longest term expires in the year 2038.
For 2013, depending on the business trend, credit
disbursements in the Export Financing Scheme can
be expected to decrease by approximately EUR 1.95
billion.
Since the OeKB-operated Export Financing Scheme
came into existence 53 years ago, a total of
EUR 137.5 billion of credit has been disbursed to the
Austrian export industry and banking sector, and
credit repayments of EUR 112.6 billion have been
received.
The total of all funds used under the Export Financing
Scheme in 2012 was EUR 65.8 billion. OeKB as an
export credit agency is thus a major issuer of debt in
international financial markets.
20
Annual Report 2012
2010 2011 2012 EUR million (except lines beginning with Number of)
Number of banks/exporters involved
Number of export financing contracts outstanding (rounded)
Total lending commitments (i.e., financing contracts and
conditional commitments) outstanding at 31 December
Financing contracts outstanding at 31 December
Of which disbursements outstanding
New commitments issued
New conditional lending commitments issued
Loan funds disbursed
Repayments received
Increase/(decrease) in net loans outstanding
Total funds used under the Export Financing Scheme
Limit on aggregate guarantee exposure
under Export Financing Guarantees Act
Total new guarantees issued
69/1,141
3,200
28,054
27,703
24,827
7,085
638
6,846
10,381
(3,535)
65,825
45,000
30,015
10,567
68/1,300
3,600
33,246
32,943
29,429
4,413
257
2,924
4,896
(1,972)
26,787
45,000
31,658
6,294
69/1,300
3,400
32,244
31,868
28,362
5,948
281
5,026
6,093
(1,067)
54,507
45,000
33,695
12,504
OeKB Export Financing Scheme
The bonds of OeKB are unconditionally and explicitly
guaranteed by the Republic of Austria and carry
ratings of Aaa/AA+ from Moodys and Standard &
Poors, with short-term debt respectively rated A1+
and P1.
OeKB funds itself on international and domestic finan-
cial markets through the issue of global bonds, liquid
benchmark transactions, private placements, structu-
red medium-term notes and short-term money market
instruments. In 2012, long-term transactions totalling
EUR 3.8 billion were placed in Austria and abroad.
Highlights included a USD global bond as well as CHF
1.45 billion of CHF bonds. OeKB also issued USD
1.85 billion in private placements.
1.3 OeKB as an issuer on capital markets
Redemption profile at 31 December 2012
Money market
instruments
21%
1 year
16%
2 to 3 years
32%
4 to 6 years
21%
7 to 10
years
4%
> 10 years
6%
21
Annual Report 2012
OeKB uses derivatives primarily swaps to improve
its funding levels and for portfolio hedging and
management.
Regular road shows are conducted to diversify and
expand the investor base.
Aggregate exposure limit of EUR 45 billion and
utilisation of EUR 30 billion
In 2012 the Republic of Austria gave guarantees
under the Export Financing Guarantees Act for a total
principal amount of EUR 10.1 billion of funds bor-
rowed by OeKB. At the reporting date of 31 December
2012, EUR 30.0 billion of the EUR 45.0 billion aggre-
gate exposure limit was utilised by guarantees
covering principal amounts and exchange rate risks,
compared with utilisation of EUR 33.7 billion at the
end of the previous year.
Selected transactions of Oesterreichische Kontrollbank AG
in 2012
Oesterreichische Kontrollbank
Aktiengesellschaft
CHF 650,000,000
3-months CHF-Libor plus 0.35% Floating Rate Notes
due 21 February 2014
unconditionally and irrevocably guaranteed by the
Republic of Austria
UBS Investment Bank
Oesterreichische Kontrollbank
Aktiengesellschaft
USD 1,500,000,000
1.125% Guaranteed Global Notes
due 6 July 2015
unconditionally and irrevocably guaranteed by the
Republic of Austria
BNP Paribas
Deutsche Bank AG, London Branch
Goldman Sachs International
J.P. Morgan Securities Ltd.
Issuance programmes EUR 25 billion, at 31 December 2012
Euro commercial paper
ECP 14.0%
US commercial paper
USCP 2.1%
Deposit market
2.7%
Other
5.3%
USD Global issues
27.4%
EUR Benchmark/
Euroshelf
18.7%
Medium term
notes MTNs/
Euroshelf
8.9%
Samurai issues
2.4%
Kangaroo issues
1.0%
Swiss franc issues
17.5%
22
Annual Report 2012
Oesterreichische Entwicklungsbank AG (OeEB) is
a development bank. Having a public mandate, OeEB
focuses on long-term financing of private sector pro-
jects in developing countries and emerging markets.
In scrutinising projects, particular emphasis is placed
not just on economic viability but on development ef-
fectiveness. Support is not explicitly tied to Austrian
investors or suppliers, although the potential of Aus-
trian companies is to be utilised on a project-centred
basis.
In addition to the income that it generates itself, OeEB
also annually receives just under EUR 20 million from
the Austrian federal government budget for project
identification, preparation, monitoring and for non-
financial project support provided by OeEB that is to
generate development benefits. Since 1 January 2012,
OeEB is permitted to use this funding to invest in sha-
res of companies and funds in developing countries
and emerging markets that have development value.
In these activities, OeEB acts as a trustee of the Re -
public of Austria.
OeEBs fourth full financial year was a successful one.
2012 was marked by dynamic growth and, as a result
also of intensified project acquisition activities, the
year brought many requests for financing, with a
number of deals signed by OeEB. To cope with the
expansion of activity, OeEB hired more staff and
further adjusted its internal structures.
At the end of December 2012, OeEB had 25 em-
ployees (excluding the Executive Board). The total
transaction volume (based on contracts signed) was
approximately EUR 230 million. Profit for the year was
EUR 901,726.26. After transfers to reserves, unalloca-
ted profit for the year amounted to EUR 229,639.95.
OeEB has share capital of EUR 5 million, which is
entirely held by OeKB. The work of the development
banks staff focuses on the immediate core activities:
the identification, structuring, implementation
and management of eligible projects. All support
functions, such as accounting, IT, human resources
administration, internal audit and asset management
have (with the approval of the Financial Market
Authority) been outsourced to OeKB on a paid basis.
The resulting lean organisation is intended to allow
OeEB to operate very cost-effectively.
More on OeEB and its services:
www.oe-eb.at
1.5 Oesterreichische Entwicklungsbank AG
Austrias development bank
sterreichischer Exportfonds GmbH (Exportfonds)
provides export financing for small- and medium-sized
companies via their own bank.
Disbursed loans outstanding at 31 December 2012
amounted to EUR 1.39 billion, or about 26% more than
one year earlier. Currently Exportfonds serves approxi-
mately 1,780 exporters, with an average outstanding
loan balance of EUR 616,000. In 2012, the entity
approved loans to 332 new customers.
Since the beginning of 2005, Wirtschaftskammer
sterreich (the Austrian chamber of commerce) holds
30% of the share capital of Exportfonds; the other 70%
has been held by OeKB AG since 1998.
The company is managed by Carl de Colle and
Elisabeth Strassmair. Excluding the management,
Exportfonds had 14 employees as of 31 December
2012.
More on Exportfonds and its services:
www.exportfonds.at
1.4 sterreichischer Exportfonds GmbH
23
Annual Report 2012
OeKB AG holds a 51% ownership interest in OeKB EH
Beteiligungs- und Management AG, a company foun-
ded in 2008. The other 49% is owned by Hamburg-
based Euler Hermes Kreditversicherungs-AG. Euler
Hermes is the worlds largest credit insurance group.
OeKB EH Beteiligungs- und Management AG was the
sole owner of PRISMA Kreditversicherungs-Aktienge-
sellschaft and OeKB Versicherung Aktiengesellschaft.
This structure of the insurance holdings serves one
main objective: A very comprehensive range of credit
insurance products can continue to be offered through
a coordinated two-brand, two-company strategy.
In 2012, a key priority for PRISMA and OeKB Versiche-
rung lay in their preparations for the implementation of
Solvency II, the new Europe-wide regulatory regime
for insurance companies. The new set of rules which
like its counterpart for banks, Basel II, is divided into
three pillars is currently still under development.
The work to get ready for the new quantitative require-
ments (Pillar I) was a focus of activity for the Groups
credit insurance companies. The risk control process
was tightened and the models for the calculation of
solvency capital required were continually adapted to
changing supervisory requirements. At the same time
the insurers worked on creating and improving pro-
cesses required in the qualitative component, that of
governance and risk management (Pillar II). Pillar III
deals with the reporting obligations of insurance com-
panies and will be gradually incorporated by the credit
insurers according to the development status of the
regulation at European level.
1.6.1 PRISMA
Kreditversicherungs-Aktiengesellschaft
PRISMA primarily insures short-term trade receivables
in OECD countries against the risk of customer
insolvency. PRISMA supports companies in their
receivables management with its specialised market
knowledge of industries and countries. The customers
of insurance clients are assessed for credit quality
on an ongoing basis and tracked using a monitoring
system. This allows most payment defaults to be
avoided.
Credit insurance from PRISMA provides a made-to-
measure solution for every insurance client: Large
companies find that the Prisma Global policy gives
them ideal protection, while smaller businesses are
often best served by a Prisma Plus policy. Capital
goods transactions can be insured through Prisma
Invest.
At PRISMA, a healthy and productive corporate
culture is considered essential. The three values of
helpful partnership, high transparency and strong
performance are clearly apparent both in the com-
panys external personality and, especially, in its
internal relationships. The common motto behind
these principles is to Get closer. To serve its
customers, PRISMA gets closer to the markets, com-
panies and creditworthiness information in all impor-
tant export markets. The values and motto represent
a promise of excellence that PRISMA wants clients to
experience consistently in working with the company.
In 2012, approximately 120 people were employed at
PRISMA. In addition to its headquarters in Vienna,
PRISMA has offices in Linz, Graz, Innsbruck, and
Belgrade (PRISMA Risk Services Serbia).
1.6 OeKB EH Beteiligungs- und Management AG
24
Annual Report 2012
1.6.2 OeKB Versicherung Aktiengesellschaft
In western industrialised countries and domestically
in Austria, but especially also in emerging economies,
OeKB Versicherung AG provides credit insurance for
sales of goods and services. Its defining competencies
are complete insurance solutions and special expertise
in difficult markets. The companys slogan can be
translated as Simply Superior Guarantees.
A total of 40 people (excluding the Executive Board)
work at the headquarters in Vienna and the office in
Linz. In 2012, OeKB Versicherung was not able to
repeat the prior years positive trend, and revenue thus
declined. The premium income of EUR 22.0 million
was 10.7% below the prior years. The reasons were
the flat export sales of the companys customers, and
premium reductions. Nonetheless, thanks to lower
claims and costs, OeKB Versicherung had a good year
overall with a clearly positive bottom line.
Product portfolio
For each customers individual requirements,
OeKB Versicherung tailors a complete package
of receivables insurance. Without extra charge,
clients are covered not just for commercial risks such
as payment delay or insolvency, but also for political
risks. Political risks include, for instance, receivables
with public sector institutions, transfer risk (this risk
is growing with the uncertain economic situation in
some countries), and defaults as a result of political
unrest.
The most comprehensive product, the Global Policy
known as P6, covers all transactions of the client with
all customers worldwide. This automatically includes a
six-month limit guarantee for approved customers. Al-
ternatively, Single-Buyer cover (P5) insures all sales to
a single customer. For individual transactions, such as
the first sale to a new customer, a Single-Transaction
policy is the suitable choice.
The economic trend in the traditional markets of
Austrian exporters is showing a pattern of volatility.
Export firms are therefore increasingly targeting
emerging markets, where economies are growing
more consistently. However, these markets too are
associated with considerable risks. This makes
comprehensive coverage on the basis of detailed risk
analysis highly advisable. With its special expertise in
difficult countries, OeKB Versicherung will continue
to back its clients sales into new export markets
in 2013.
More on OeKB Versicherung AG and its services:
www.oekbversicherung.at
PRISMA Kreditversicherungs-AG also holds the major-
ity of the shares of PRISMA Risikoservice GmbH & Co
KG. This subsidiary provides most of the insurance
companys credit analysis, for which it draws on the
information resources of the globe-spanning Euler
Hermes network. This network gives Austrian clients
access to information on 40 million companies in
more than 50 countries.
PRISMA remained the market leader in 2012. This
was despite the fact that writing new business proved
challenging in the year under review. Although interna-
tional insolvencies are persistently high, suppliers are
frequently foregoing insurance on their deliveries and
making do without the early warning system provided
by the credit insurer.
More on PRISMA and its services:
www.prisma-kredit.com
25
Annual Report 2012
From its very beginnings, OeKB has contributed in
many ways to the growth and increasing sophisti-
cation of the Austrian securities marketplace, playing
a crucial role in the establishment and progressive
development of the domestic capital market,
especially for bonds.
This has always been done in the service of the capital
market participants, while acting in agreement with
the Vienna Stock Exchange and in coordination with
the Federal Ministry of Finance, the Austrian Financial
Market Authority, and Oesterreichische Nationalbank
(the Austrian central bank).
2 Capital Market Services
2.1 Capital market
2.1.1 Issuer Services
Issuer Information Center
OeKB operates a system for the central storage of
regulated issuer information, the Issuer Information
Center, for issuers whose securities are listed on a
regulated market. The core functions of the Issuer
Information Center include the electronic receipt,
storage, and provision of access to regulated infor-
mation. As well, at the issuers request, the Issuer
Information Center passes regulated and voluntary
information on to specified recipients on an automa-
ted basis (for instance, the Vienna Stock Exchange
and the Austrian Financial Market Authority). In 2012,
a total of 136 issuers used the Portal and sent about
3,200 notifications.
Issuer Information Center (http://issuerinfo.oekb.at)
is a centralised Internet platform for required and
voluntary disclosures by issuers to investors in Austria
and other countries. It is accessible free of charge to
the public and to market participants.
AGM Services
OeKB is a provider of all the processes involved in the
preparation and execution of annual general meetings.
AGMs of any size for companies in all industries are
conducted successfully and smoothly. In AGM regis-
trations, OeKB aims to raise the bar with high stan-
dards of data security and integrity.
On the day of the general meeting itself, OeKB,
working in partnership with the worldwide leader in
AGM services, offers straight through processing of
the data from the registration process, attendance
check, advanced vote counting technology, state-of-
the-art voting methods and stage communications
and a backoffice online chat facility with database
management. All features and components of the
service are scaleable and modular, and are tailored
to the size and requirements of the particular AGM.
For issuers, banks, proxies and other capital market
participants involved in AGM processes, OeKB's
AGM Services deliver infrastructure solutions that
are efficient, customised and future-proof.
With its broad offering of capital market services,
OeKB is a hub for numerous processes required in
the financial markets before and after the purchase or
sale of securities. For decades now, these services
have benefited financial services providers, issuers,
investors and the Republic of Austria.
OeKB continually updates and upgrades its capital
market logistics services. The financial market
actors are thus always supported to the latest
technical and legal standards.
26
Annual Report 2012
OeKB is the agent for the issuance of bonds of the
Republic of Austria at auction. The bond auctions are
conducted through ADAS (Austrian Direct Auction
System), the automated electronic auction system
developed by OeKB.
For 2012 the Austrian Federal Financing Agency had
indicated its financing requirement as EUR 27 billion
to EUR 30 billion, an increase from the year before.
Nine auctions with a combined issuance of EUR 11.25
billion were held. Additionally, a total of EUR 10.0
billion was issued through syndicates in January and
June.
For 2013 the Federal Financing Agency estimates the
financing requirement at EUR 27 billion to EUR 30 bil-
lion. As in 2012, monthly auctions are scheduled for
2013.
2.1.2 Organisation and administration of domestic bond issues
3.800% Bundesanleihe 2012-2062/1 2,000,000
First reopening 440,000
3.400% Bundesanleihe 2012-2022/2 3,000,000
First reopening 1,100,000
Second reopening 605,000
Third reopening 550,000
Fourth reopening 660,000
Fifth reopening 714,658
Sixth reopening 550,000
1.950% Bundesanleihe 20122019/3 3,000,000
Second reopening 550,976
Fourth reopening 550,000
3.150% Bundesanleihe 20122044/4 2,000,000
3.650% Bundesanleihe 20112022/1
Fifth reopening 741,152
3.200% Bundesanleihe 2010-2017/1
Seventh reopening 660,000
Nominal value in EUR thousand
Austrian federal government bonds
issued in 2012
Principal paying agent
As a principal paying agent, OeKB was responsible for
240 classes of securities of Austrian issuers in 2012.
OeKB acts in this capacity for the payment of principal
and interest on domestic bond issues of the Republic
of Austria. It also handled the redemptions of 37 other
bond issues that had already matured.
MERCUR
OeKB has the mandate from the Federal Ministry of
Justice for managing and publishing MERCUR, a
gazette for information under the Act on the Cancel-
lation of Lost or Stolen Securities (Kraftloserklrungs-
gesetz). In 2012 this involved the management of
300 securities classes.
27
Annual Report 2012
2.1.3 Notification office under
the Capital Markets Act
In 1992, under the Capital Markets Act, OeKB
became Austrias official notification office.
Prospectus repository
The notification office acts as the filing destination
and database for prospectuses prepared in compli-
ance with the Capital Markets Act, the Investment
Fund Act and Real Estate Investment Fund Act; it also
maintains a calendar (required by the Capital Markets
Act) of planned new issues of securities and invest-
ments. The related reports received are published
daily on the Internet without stating the names of
prospective issuers. In 2012 the notification office
processed about one million reports for the new-issue
calendar. The repository database currently contains
approximately 40,500 prospectuses (including
prospectus supplements/amendments) filed under
the Capital Markets Act and fund documents filed
under Investment Fund Act and Real Estate Invest-
ment Fund Act.
Legal information system
When the Capital Markets Act entered into force, the
Federal Ministry of Finance and OeKB (in its role as
the notification office) set up a legal information
system to facilitate the application of the Act. Legal
opinions on stock exchange and capital markets law
obtained from the legal information system continue
to be forwarded by the notification office to interested
parties, provided that the Ministry of Finance pub-
lished them in abstract form.
The notification office also answers inquiries
regarding compliance with the formal disclosure
requirements under the Capital Markets Act, Invest-
ment Funds Act and Real Estate Investment Funds
Act. It supplies copies of the prospectuses filed and
informs the Federal Ministry of Finance, the Financial
Market Authority and the Austrian central bank of
trends observed in the capital market.
As of 1 September 2011, with the coming into effect
of the Investment Fund Act of 2011, the functions of
the notification office were adjusted in line with the
new requirements for the electronic filing and storage
of fund prospectuses.
2.1.4 Financial Data Services
As part of its key functions in the Austrian capital
market, OeKB offers comprehensive financial data ser-
vices. In addition to master and transaction data on
domestic and foreign securities, OeKB calculates and
publishes data for domestic and foreign funds, fixed
income securities and investment performance results
of pension funds.
ISIN Services
As the National Numbering Agency (NNA), OeKB on
request assigns an International Securities Identifi-
cation Number (ISIN) to a financial instrument. The
ISIN allows each financial instrument to be uniquely
identified worldwide, something that is of fundamental
importance to all capital market participants. The ISIN
consists of the country prefix AT, a nine-character
core of digits and letters that can be chosen by the
issuer, and a check digit.
The ISINs are distributed by OeKB in accordance
with ISO standard 6166 and are available in the ISIN
directory at www.profitweb.at. At year-end the ISIN
services were being used by 1,773 issuers. In 2012
OeKB issued 14,885 ISINs, of which 8,661 were for
derivatives traded on the Vienna exchange of the CEE
Stock Exchange Group (CEESEG). A total of 26,683
active ISINs were searchable in the ISIN directory at
the end of 2012.
28
Annual Report 2012
The new Internet application, ISIN Services, which
allows ISINs to be requested online, has been well-re-
ceived by ISIN applicants. Automated requests can be
placed through an XML interface. Almost all appli-
cants take advantage of the efficiency of this channel.
Securities master data and transaction data
OeKB maintains databases for Austrian and inter-
national securities and other investment vehicles.
The data is entered by OeKB after careful research,
and its up-to-dateness and accuracy are verified by a
standardised quality assurance process. Four hundred
and fifty data fields specify every Austrian security.
Seven hundred fields are available for foreign issues.
Price and rate data
For valuation purposes, OeKB provides the following
content through data feeds:
I Prices of securities traded on the
Vienna Stock Exchange (CEESEG)
I Prices of unlisted Austrian securities
I Prices of international securities
I Reference exchange rates of the ECB.
Profitweb
Profitweb is a long-established Internet platform for
securities data, offering the following benefits:
I Master and transaction data on 1,605,156
active domestic and foreign financial instruments
I Price and transaction data, classification data,
performance and risk indicators, volumes and
portfolios of all Austrian funds and all foreign
funds registered for sale in Austria
I Convenient search functions
I Customisable analysis/reports, at data field level
I Charting tool
I Download options for all analyses and
historical data
I Publication of capital yield tax data under the Fund
Reporting Regulation
Portfolio Data
This service enables fund companies to exchange
detailed fund data (particularly data on full holdings)
on an automated basis in the international, standard
FundsXML format and thus efficiently make the data
available to business partners, data vendors, investors
and regulators.
Fund Processing Passport
Through the Fund Processing Standardisation Group,
the European Fund and Asset Management Associa-
tion (EFAMA) carefully analysed the efficiency of back
office processes. Based on the insights gained, the
Fund Processing Passport (FPP) was developed.
This document is harmonised across Europe and
contains all essential operational information about
a given fund.
Under contract to the Association of Austrian
Investment Companies (VIG), OeKB collects and
distributes the Fund Processing Passport data for the
Austrian fund companies. This service for investment
companies is available via www.profitweb.at and is
also accessible through EFAMAs central FPP Portal,
in which OeKB acts as one of the five European
Primary Providers.
29
Annual Report 2012
At its website www.efama.org, EFAMA offers
centralised access to all existing European FPPs.
With this FPP Portal, EFAMA intends to move a
step closer to its goal of creating an efficient, single
European market for investment funds.
Financial statement data transfer system
Bilanz Transfer, a system developed by OeKB at the
initiative of UniCredit Bank Austria and Erste Bank,
enables accountants acting on behalf of their clients
to transfer the data from balance sheets, income
statements, and income and expenditure accounts to
banks in standardised XML format. The banks in turn
use the system to provide analytical feedback (re-
ports, ratios and ratings). The structure of the data
and the electronic transmission technology are based
on the data transfer specifications of the Company
Register.
In 2012 the list grew to include both additional banks
and more than 150 accountants as new users of the
service. The constantly updated list of all participating
banks, along with other information, is found at
www.oekb.at/en/capital-market/services-a-
z/pages/balance-sheet-transfer.aspx.
Tax data for investment funds
In accordance with the Investment Fund Act, OeKB as
the notification office under the Capital Markets Act
has responsibility for the centralised collection and
publication of the data on capital yield tax amounts
(the tax is known in Austria as Kapitalertragsteuer,
or KESt) and EU withholding tax amounts for funds.
Since the coming into effect of the Fund Reporting
Regulation on 1 April 2012, both domestic and foreign
fund companies whose funds are classified as capital
yield tax reporting funds report their tax data to OeKB.
They file ad-hoc reports on distributions and, once per
year, report full-year data on income deemed equiva-
lent to distributions.
To this end, OeKB provides fund companies with an
efficient infrastructure, including the necessary elec-
tronic interfaces for collection of the data.
OeKB publishes these tax amounts for currently
27,000 ISINs on www.profitweb.at. The information
is also available in the form of electronic files.
In 2012 the reporting of capital yield tax amounts
was reorganised to reflect new legislation. Changes
included the provision of the required new technical
infrastructure and also modifications to the legal and
administrative basis for the reporting process. These
changes were made in coordination with all parties
involved in the reporting process, such as the fund
companies themselves, their administrators and tax
representatives.
Notification of fund actions
Under section 133 of the Investment Fund Act, fund
companies must inform investors of certain fund
actions or events. To enable companies to comply
rapidly with their notification obligations, OeKB deve-
loped a solution for the Austrian fund industry that
makes the following functions available:
I Transfer of information and documents on fund
actions: The data is transferred via the Fund
Upload Client, which is also used for filing tax
information.
I Display in Issuer Information Center: The informa-
tion is made available through the website,
http://issuerinfo.oekb.at, which anyone may ac-
cess free of charge. Investors and others can opt
to be notified automatically by e-mail when new
information is posted on the site.
I Forwarding by SWIFT/e-mail: The notifications of
fund actions are distributed via SWIFT (MT564)
and/or e-mail specifically to custodians and
CSD.A account holders.
30
Annual Report 2012
Securities that are quoted in percent of par value
Assets under custody at 31 December, EUR billion
2012
313.6
2008
251.4
2009
274.8
2010
289.7
2011
306.5
Securities that are quoted per unit
Assets under custody at 31 December, units in million
2012
10,321
10,829
9,742 9,802 9,774
2008 2009 2010 2011
OeKB Sustainability Fund Index (OeSFX)
A growing number of investors are putting their money
into companies whose conduct is particularly ethical
in terms of environmental and social responsibility.
To achieve the greatest possible diversification of risk,
a promising strategy for these investors is to buy
environmentally or socially responsible funds. This is
often referred to collectively as socially responsible
investing (SRI), ethical investing or sustainable
investing. With the OeKB Sustainability Fund Index
developed by OeKB, investors can compare the
performance of such funds to that of the entire
universe of sustainable equity funds registered for
sale in Austria.
The index is another way in which OeKB practices its
lasting commitment to sustainable business. Details
on the OeSFX and current prices are available at
www.oesfx.at.
CentralSecuritiesDepository.Austria
A book entry transfer of securities at CSD.Austria
eliminates the need to move physical securities.
Instructions for securities transfers are generally
placed electronically through OeKBs DirectSettle-
ment.Advanced (DS.A) system.
Through collective custody, banks that maintain
accounts at CSD.Austria gain the benefits of heigh-
tened efficiency and security in the safekeeping and
administration of securities. What is more, they save
time and costs in their own in-house custody
activities.
At 31 December 2012, CSD.Austria held 22,382
classes of securities for 157 depositors
1
(prior year:
22,322 and 162, respectively).
2.2 CentralSecuritiesDepository.Austria and
processing of off-exchange securities transactions
1
Subject to approval by CSD.Austria, the following types of institutions may hold custody accounts: credit institutions, registered securities firms,
members of a domestic securities exchange, official brokers of the Vienna Stock Exchange, foreign central securities depositories,
and securities clearing houses. CSD.Austria may also admit other legal or natural persons and companies as depositors.
31
Annual Report 2012
Settlement finality act
A decision of Oesterreichische Nationalbank on
9 December 2003 recognised CentralSecurities-
Depository.Austria the CSD established and opera-
ted by OeKB as a system for the purposes of the
Settlement Finality Act. Through the Settlement
Finality Act, Directive 98/26/EC of the European
Parliament and Council of 19 May 1998 (the Settle-
ment Finality Directive) was transposed into national
law in Austria.
The purpose of the Settlement Finality Act is to
improve the protection of participants in systems
defined under the Act in the event of insolvency of
another participant. When this occurs, the status of
CSD.Austria as a system under the Settlement Finality
Act places the customers of CSD.Austria in the best
possible legal position.
CCL
CCL (Custody with Clearing Link), a product designed
to complement CSD.Austria, allows the Austrian
CSDs customers to reap the benefits of direct
The transactions settled within the DS.A system
are classified into three types as follows:
I Transactions between two CSD.Austria account
holders (Internal transactions)
I Transactions between a CSD.Austria account
holder and a counterparty having an account at
another custodian of CSD.Austria, in a security
held at that custodian (External transactions)
I Transactions from the Custody Clearing Link
(CCL transactions).
The custody account balances shown in these charts
underline the important role which CSD.Austria, and
hence the non-physical transfer of securities, have
come to play in Austria. Approximately 90% of the
nominal value of Austrian debt securities, more than
90% of the nominal amount of all listed Austrian equity
securities and over 70% of Austrian certificates
(the popular structured products known as Zertifi-
kate) are under custody with and serviced by
CSD.Austria.
Number of transactions settled by CSD.Austria in thousand
2012 2008 2009 2010 2011
106
749
916
285
774
1,104
292
716
1,039
292
825
1,179
196
838
1,123
Internal
External
CCL
32
Annual Report 2012
2.3 CCP Austria Abwicklungsstelle fr Brsengeschfte GmbH
CCP.A acts as the clearing agent for the Vienna Stock
Exchange (VSE) and is the central counterparty for
all trades concluded on the exchange. In this key role,
CCP.A makes a major contribution to the stability
of the financial market.
For the clearing and settlement of stock exchange
transactions in the cash market, CCP.A uses the
automated SICS system (Settlement Information and
Clearing System) developed and operated by OeKB.
It uses the CSD.Austria accounts of the Vienna
Stock Exchange members to enter the net securities
balances. Exchange transactions in the derivatives
market are cleared via the EUREX system operated
by the Vienna Stock Exchange. More than 9,200
different products are currently processed through
these systems.
The following table shows the transaction volume
contracted and cleared in 2012 by CCP.A as the
central counterparty.
membership in the Frankfurt Stock Exchange and all
seven German regional exchanges without having to
build and maintain their own clearing and settlement
infrastructure. The securities bought in Germany are
credited to the accounts within CSD.Austria (providing
a single point of entry), where they are administered.
OeKB was the only central securities depository in
Europe to offer such a service. As of the end of 2012,
five Austrian banks settled their securities trades on
the German exchanges via OeKBs CCL product.
On these other exchanges, OeKB complements its
settlement service by also acting as an execution
broker with electronic order routing. To do so, OeKB
became a member of all trading floor exchanges in
Germany. The orders are sent electronically to OeKB
and automatically routed to the appropriate stock
exchange for execution. Through efficient risk
management and its own dunning system, OeKB
optimises the clearing and settlement of securities
trades in Germany and the fulfilment of its customers
payment and delivery obligations.
In the year under review, OeKB upgraded its technolo-
gical infrastructure and now uses a certified provider
of order routing systems. This change did not entail
any monetary or other costs for customers.
European developments
In 2012 the European Commission drew up a pro-
posed Regulation for the improvement of securities
settlement in the European Union and on central
securities depositories. It is expected that the Regula-
tion will take effect in 2013 and will have to be imple-
mented after a likely transition period of two years.
The Regulation will also affect the business activities
of CSD.A.
At the end of June 2012, OeKB signed the framework
agreement on the use of the securities settlement
platform, Target 2 Securities (T2S), to be developed
by the Eurosystem. The migration of CSD.As IT
systems to the new platform is planned for November
2016.
33
Annual Report 2012
1
Netting factor: Number of trades divided by number of net positions.
2012 2011
Number of orders executed 5,936,050 6,319,041 4,511,593
Turnover in EUR million (double counted) 76,556 62,572 36,947
Total number 305,343 282,337 242,729
Netting factor
1
31.7 35.1 29.2
Number of contracts 838,911 874,063 710,422
Volume of contracts in EUR million 16,993.33 15,734.81 15,632.17
Volume of exchange-traded options in EUR million 131.31 119.25 74.38
2010
Derivatives market
Exchange turnover
Stock exchange turnover
Cash market
Cleared net positions
As of the end of 2012, CCP.A served 68 Austrian and
international members, all of them also members of
the Vienna Stock Exchange.
To ensure the fulfilment of transactions under con-
stantly changing market conditions, CCP.A employs
a multi-tiered collateral system, which was approved
also by the FMA. The risks are recalculated several
times per day and every clearing parti cipant deposits
security in a common fund (the clearing fund) accor-
ding to its particular level of risk or the risk of its Non
Clearing Members (NCM).
At the end of 2012 the CCP.A held collateral and
other security totalling about EUR 540 million in the
form of a common fund for the cash and derivatives
market and in the form of individual security of clea-
ring members.
In August 2012 the European Market Infrastructure
Regulation (EMIR) took effect. In connection with this,
the European Securities Market Authority (ESMA) and
the European Banking Authority (EBA) at the end of
September 2012 submitted the regulatory technical
standards (RTS) to the European Commission, which
approved them at the end of 2012. After passage by
the EU Parliament and the Council, the standards are
expected to enter into force in the first quarter of
2013. They represent the requirements which central
counterparties recognised in the EU will have to meet
in future. Next to changes in processes, the standards
will centre on changes in risk management and on
capital requirements for CCPs.
34
Annual Report 2012
The liberalised energy market too is a beneficiary of
the expertise accumulated by OeKB over decades. As
part of the deregulation of the Austrian energy mar-
kets which during 2012 culminated in the implemen-
tation of the Third Energy Package in the electricity
and gas market, OeKB performs the financial clearing,
risk management and credit analysis on behalf of the
independent clearing agencies created for the deter-
mination, clearing and settlement of balancing
energy (APCS Power Clearing and Settlement AG and
AGCS Gas Clearing and Settlement AG) and on behalf
of Energy Exchange Austria (EXAA) and OeMAG, the
clearing and settlement agent for green electricity. In
addition, the OeKB Group provides a resource-saving
outsourcing solution to Austrian companies for the
trading of carbon emission allowances (EUAs and
CERs, also referred to in Austria as CO
2
emission
certificates).
Services to the balancing energy market
for power and gas
In the liberalised Austrian energy market, APCS Power
Clearing and Settlement AG (APCS) was licenced in
2001 as the balancing energy clearing agent for
electricity, and AGCS Gas Clearing and Settlement AG
(AGCS) was licenced in 2002 as the corresponding
agent for gas.
As clearing agencies, the main responsibility of APCS
and AGCS is to provide a competitive balancing
energy market for electricity and gas.
More on APCS and AGCS and their services:
www.apcs.at and www.agcs.at
Services for Energy Exchange Austria
In 2002, Energy Exchange Austria (EXAA) used the
full liberalisation of the Austrian electricity market to
open for trading in the electricity spot market. In
addition to the usual responsibilities of an exchange,
EXAA acts as the central counterparty for all trades.
More on EXAA and its services:
www.exaa.at
Services to the clearing and settlement
agent for green electricity
OeMAG Abwicklungsstelle fr kostrom AG was set
up in July 2006 under the amendment of Austrias
Green Electricity Act, which introduced a uniform
Austria-wide approach to the subsidisation of electri-
city from environmentally friendly sources. OeMAG
handles the clearing and settlement of the green
electricity subsidies and is the appointed sole clearing
and settlement agency for subsidised green power in
Austria.
More on OeMAG and its services:
www.oem-ag.at
Services as a clearing bank to European
Commodity Clearing AG (ECC)
Since 2012 OeKB provides services as a clearing bank
to the spot energy market.
The clearing bank function consists of providing ac-
counts, payment processing and collateral manage-
ment for exchange members.
Carbon emission trading services
The OeKB Group provides an easy solution for the
cost-efficient and convenient buying and selling of
spot carbon dioxide allowances over-the-counter.
Under the European Union Emission Trading Scheme
(EU ETS), which governs carbon trading in the EU,
OeKB supports purchases and sales of allowances.
3 Energy Market Services
35
Annual Report 2012
4 Information Services and IT Services
The crisis in global finance and business has created
unprecedented challenges for many market partici-
pants. Against this backdrop, 2012 even more than
earlier years brought home the great importance
of reliable high-quality data: Wise strategic business
decisions that can stand the test of time require
dependable knowledge both of market opportunities
and of the associated risks. At OeKB, the department
tasked with making such knowledge available, through
macro- and microeconomic analytical reports, is Bank
and Business Information (BBI). It services companies
in Austria and abroad, as well as all businesses of
the OeKB Group.
OeKB CEE Business Climate Index
The Thomson Reuters & OeKB CEE Business Climate
Index was developed by BBI to support companies
with international operations, as well as analysts and
other market observers, in their Central and Eastern
European activities. Leading indicators for a total
of 21 countries in Central, Eastern and Southeastern
Europe give early signals of opportunities in the region
and enable users to keep risks firmly in sight. Amid
the trying and geographically very heterogeneous
economic situation in the region, the Index again
proved its worth in 2012 as an effective bellwether,
4.1 Information Services
To identify market opportunities and risks at the
right time, companies need market intelligence they
can count on when making decisions. The team at
Information Services uses its well-rounded expertise
and proven network to give internationally operating
companies and financial institutions an edge through
sophisticated information on developments in busi-
ness and finance.
Safe and reliable software solutions that enhance
collaboration within and between companies are
provided by OeKB Business Services GmbH, a Group
company.
Economic situation Business climate Investment Source: OeKB Information Services
OeKB CEE Business Climate Index
Economic situation, business climate, investment; CEE overall net change, in %-points
110
100
90
80
70
60
50
2007 2008
Q1 Q1 Q2 Q3 Q4
2009
Q1 Q2 Q3 Q4
2010
Q1 Q2 Q3 Q4
2011
Q1 Q2 Q3 Q4
2012
Q1 Q2 Q3 Q4 Q3 Q4
36
Annual Report 2012
providing a highly nuanced, real-world picture of how
global companies in different sectors view the situa-
tion and outlook for the CEE region as a whole and its
individual countries. The Business Climate Index for
Central and Eastern Europe is marketed worldwide
through a successful, established partnership with
Thomson Reuters. Additionally, in 2012 numerous
companies made use of the leading indicators calcula-
ted quarterly by OeKB for their strategic decisions in
the region.
Information Broking/Economic Research
The Information Broking service, targeted mainly
to business enterprises, financial services providers
in Austria and other countries, and scientific and
research institutions, continued to be expanded in
2012, as demand for professional, made-to-measure
research is progressively rising. Working to custom-
ers exact wishes, the specialists at BBI prepare stu-
dies, analyses and concise reports on specific aspects
of global financial and economic developments.
Last year the customer requests focused particularly
on analysis of market structure and potential, sector
reports, comparative evaluations of business
locations, peer group reviews and company profiles:
In 2012, leading companies relied on analysis from
BBI especially in their globalisation strategies and the
further growing of their operating business. Strategic
partnerships with international data vendors were
further broadened and joint projects were success-
fully operationalised. BBI thus continued to assert
its position as a provider of high-quality market
information.
Online Press Review
In the form of the Online Press Review (which repre-
sents a longstanding successful collaboration with
APA Austria Presse Agentur), BBI provides companies
in various industries with daily, structured information
on current affairs: BBIs media analysis team, using
customer-specified profiles, searches the national and
international press and selects all pertinent news
about financial and business developments, relevant
markets and companies. This customised news round-
up is available to clients daily from 9 am on the
Internet, is stored in the companys own media
archive and can be retrieved at any time. At the
reporting date, BBIs Online Press Review had about
2,500 subscribers in Austria and abroad, for whom it
is highly important in the global volatile environment
to remain authoritatively informed on developments
in the various national and international markets.
austrian business monitor
With its austrian business monitor, BBI provides
comprehensive daily news on industries and industry
players: Selected press reports from a wide range
of media give a rapid overview of trends in all sectors
of the Austrian economy. The publication also focuses
on reports about significant international and all Aus-
trian firms, from small family businesses all the way
to multinational groups. Working together with APA,
which contributes its technical expertise, the daily
news update is stored in a company and industry
database. This product too, which focuses primarily
on business trends in Austria, was very well received
in the year under review. It allows subscribers to
follow not only broad trends, but also to stay consis-
tently informed on company-specific developments
at customers, suppliers and strategic allies.
Information Services to the OeKB Group
The information services for all business areas of the
Bank have undergone extensive customisation in the
year under review. It continues to be BBIs strategic
goal to generate direct value-added for OeKBs
operations. Moreover, BBI seeks to promote the sus-
tained commercial success of OeKB by creating and
expanding practice-oriented knowledge management
structures.
37
Annual Report 2012
This specialist IT service provider, which is wholly
owned by the Group, supports customers with profes-
sional software solutions recognised for their very high
quality, security and reliability. The products are based
on well-established technologies such as Java, .NET
and Microsoft SharePoint.
As a leading partner to Prologics IT GmbH and as a
Microsoft Silver Partner, OeKB Business Services
GmbH provides expert implementation, training
and ongoing support for SharePoint and FireStart
solutions. Its core competencies are the optimisation
of business processes and the management of
sensitive business data.
All solutions are web-based and designed to heighten
collaboration within and between companies.
The latest product is the OeKB-BS >Publication-
Manager. This software solution is based on familiar
Office programmes and allows professional publica-
tions to be produced for print, web and mobile
applications supported by automated workflow for
perfect team work.
More on OeKB Business Services GmbH, its products
and services: www.oekb-bs.at
4.2 OeKB Business Services GmbH
5 Sustainability at OeKB
The ten principles of the UN Global Compact focus
on four areas of concern: labour, environmental pro-
tection, human rights and anti-corruption. OeKB
signed up to the Global Compact in 2007 and is com-
mitted to its principles. The Groups sustainability
efforts are guided by the Compact.
Labour
In June 2012 the Fair IT project wound down after
more than two years of intensive efforts with the close
involvement of NGOs (Sdwind in Austria, SACOM in
China), the business community (with the commit-
ment of most Austrian banks) and other stakeholders
(the national UN Global Compact networks in Austria
and Germany). Its activities made a contribution to
fostering awareness of working conditions in manu-
facturing countries, even if measurable results are
difficult to attribute directly. OeKB continues to
support the Fair IT initiative and will remain mindful
of corporate responsibility regarding supply chain
management.
38
Annual Report 2012
Environment
With close attention to environmental criteria, the ex-
pansion of the top floor at the Strauchgasse address
in Vienna was completed, adding 2,065 square metres
of space. In the current facility management budget,
costs per square metre were reduced by 8% compared
with the 2010 budget through improvements and
energy savings achieved in the thermal renovation
of the building. In 2012 the high energy efficiency
of 42 kWh/m
2
of the Grnderzeit-style building,
which dates from 1850, enabled OeKB to join the
GreenBuilding Programme (GBP) of the European
Union.
A contribution to energy efficiency in corporate travel
was made by becoming an active member of the
Vienna e-mobility zone and acquiring an electric
vehicle for inner-city use. A carsharing agreement
was completed which, combined with train travel,
will support environmentally friendly business trips.
Assessment of environmental and social impacts
In respect of the products of its Export Services
operations, OeKB has a high degree of responsibility
regarding the potential impact of transactions on the
environment and on society. From 1 January 2013 a
revised environmental impact assessment procedure
applies for the Export Services segment. It is based on
the Recommendation of the Council on Common Ap-
proaches for Officially Supported Export Credits and
Environmental and Social Due Diligence adopted by
the OECD in June 2012 (known simply as the Com-
mon Approaches). The new impact assessment
methodology introduces additional clarification and
specifics in the environmental dimension and the
greater inclusion of social aspects, including project-
specific human rights considerations. In its implemen-
tation, OeKB is advised by the Ludwig Boltzmann
Institute of Human Rights. At an event for customers
in late November 2012, exporters and banks joined
sustainability representatives of companies to discuss
the new assessment procedure and the OECD Guide-
lines for Multinational Enterprises, which were up-
dated in the previous year.
Anti-corruption
With support from OeKB, the International Chamber of
Commerce held two events in March and October in
OeKBs Reitersaal hall on the subject of anti-corrup-
tion. The events, which focused particularly on China
and the Balkan countries, were designed to show local
actors possible ways of dealing with and taking a
stand against corruption and how businesses can
respond constructively and resolutely to demands for
bribes. This collaborative work continues in 2013.
39
Annual Report 2012
Consolidated income statement 52
Consolidated balance sheet 53
Consolidated statement of changes in equity 54
Consolidated cash flow statement 55
Notes to the consolidated financial statements of the OeKB Group
Accounting policies 56
Segmental information 63
Notes to the consolidated income statement 65
Notes to the consolidated balance sheet 69
Other information and risk report 78
Auditors Report 96
OeKB Group consolidated financial statements 2012
Page
Group Financial Report
Group management report 2012
1 Economic and capital markets situation and financial results 40
2 System of internal control and of risk management 48
3 Risk management 49
4 Human resources 50
40
Annual Report 2012
Group management report
Economic environment in 2012
In 2012 the growth of the world economy slowed visibly:
Global economic output rose by a real 3.3%, down from
an average annual growth rate of 4.5% in 2010 and
2011. Several inhibiting factors coincided in 2012:
The euro crisis worsened and the eurozone slid into
recession, with real gross domestic product declining
by 0.4%. This affected the world economy both di-
rectly through foreign trade flows, and indirectly as
more and more market participants around the world
lost confidence in the effectiveness of economic po-
licy tools.
What is more, the drag on world economic growth in
2012 was not exerted only by the eurozone. In the
entire OECD region, greater budget consolidation
was high on government agendas last year and was
pursued largely by cutting expenditures. Estimates
put the growth reduction in the OECD at about 1 to
1.5 percentage points for 2012. Additionally, econo-
mic activity in the emerging markets the prime
movers of the world economy slowed unexpectedly
sharply last year, caused both by weaker exports and
the past several years of restrictive economic policies.
Along with the global economy as a whole, world trade
also lost momentum significantly in the year under re-
view. The World Trade Organization, the WTO, expects
that growth in world trade fell by half, from 5% in 2011
to 2.5% in 2012. One of the reasons for this drop is
the more cautious lending by banks, especially for
project and trade finance worldwide. Particularly the
euro area banks, which according to the World Bank
accounted for 36% of worldwide trade finance in 2011,
noticeably reduced their trade financing in 2012. Al-
though non-European banks were able to make up
some of the credit shortfall created in regions such as
Asia by reduced financing from European banks, the
global volume of trade finance in the first nine months
of 2012 as reported by data vendor Dealogic slumped
by 15% compared with the same period one year
earlier. Likewise, the worldwide volume of guarantees
provided by export credit agencies fell by 13% in the
first three quarters of the year.
The global economic trend in 2012 varied by region:
While the eurozone slipped into recession, economic
growth in the United States held up well despite
drought-related crop losses and the destruction
wrought by Hurricane Sandy: The OECD is estimating
that real US economic output grew by 2.2%, slightly
more than the rate of 1.8% reached in 2011. Similar to
the eurozone, in the USA the crucial requirement for
lasting future growth is the restoration of sustainable
public finances. After lengthy negotiations, a budget
compromise was reached in Congress as 2012 turned
into 2013, just in time to avoid triggering spending
cuts and tax increases totalling USD 600 billion that
could have plunged the American economy into reces-
sion. Experts now project US economic growth of
about 2% in 2013.
In Japan the first half of 2012 was defined by recon-
struction after the seismic disaster of March 2011. In
the second half of the year, the softening world trade
and diminishing domestic demand made themselves
felt in the Japanese economy. For the full year 2012
the OECD estimates Japans real economic growth at
1.6%. Japans budget situation too is critical. In 2012
the budget deficit reached approximately 10% of GDP
and the public debt climbed to about 214% of the
countrys entire economic output.
Asia provided less impetus for the world economy in
2012 than in the previous year: According to the
Asian Development Bank, the developing Asia region
(which consists of 44 emerging markets) recorded
economic growth in 2012 of 6%, down from 7.2% in
2011. With China and India leading the decline, the
regions economic momentum ebbed significantly last
year. A similar trend was observed in Latin Americas
largest economy, Brazil, which decelerated in 2012.
After already relatively modest economic growth of
2.7% in 2011, GDP expansion slowed further to 1.5%
in the year under review.
In Europe the economic and debt crisis heated up again
in 2012, leading to a GDP contraction of 0.3% in the 27-
member European Union. As in the prior years, economic
realities were harshest in the southern European peri-
phery. Yet the EUs core too was not spared the conse-
quences of the crisis: While France, for instance, was
confronted with a stagnating economy in 2012, the
1 Economic and capital markets situation and financial results
Group management report 2012
41
Annual Report 2012
United Kingdom actually went into recession. An eco-
nomy that proved comparatively resilient was that of
Germany, with growth just short of the 1% mark.
One of the key reasons for Europes travails was the
high level of uncertainty in the business environment,
which made companies quite reluctant to invest. In
the southern countries this effect was exacerbated by
banks reluctance to lend. However, private consump-
tion too was subdued in 2012 the result not just of
high unemployment (at 10.7% in the EU-27) but of the
in some cases substantial household debt levels in the
crisis countries. On the bright side, exports were a
positive driving force. Notably in the first half of the
year, shipments to Asia and the Americas increased
more strongly than imports. Towards the end of 2012,
however, new orders for exports slowed, thus signifi-
cantly reducing the growth contribution derived from
trade with the rest of the world.
The euro area was severely affected by the debt
problems in Portugal, Italy, Ireland, Greece and Spain.
Besides the still precarious state of troubled euro
member country Greece, it was above all the ailing
Spanish banking system that attracted a spate of
negative news headlines. In these five countries an-
other expansion of the austerity programmes was
therefore undertaken. In autumn 2012 the calming
of financial market jitters was greatly helped by the
coming into force of the European Stability Mechanism
(the ESM) and the readiness of the European Central
Bank to buy government bonds of stricken eurozone
countries. Nonetheless, informed commentators agree
that there is no way around a structural shift in the
countries at the heart of the crisis. The first signs of an
economic recovery in the eurozone are therefore not
expected until spring 2013 at the earliest.
The persistent difficulties in the euro area had ripple
effects in Central and Southeastern Europe. Although
in 2012 the region as a whole grew somewhat more
strongly than Western Europe, there was much hetero-
geneity between nations. Thus, economic contractions
in the year under review occurred in future EU mem-
ber Croatia, in crisis-ridden Hungary and in Slovenia
with its staggering banking problems. Russia, Poland
and the Baltics meanwhile reported relatively solid
GDP growth as these countries benefit from more
stable domestic demand and/or their trade relations
are not as exposed to the eurozone.
For 2013, economic researchers are predicting an
albeit moderate economic recovery for Central and
Southern Europe (except Slovenia). Foreign direct in-
vestors in Central and Eastern Europe, by contrast,
are less optimistic for the future, as demonstrated by
Sources: WIFO, European Commission, OECD
Real GDP growth 2012/2013 in % in selected countries and regions
9
8
7
6
5
4
3
2
1
0
-1
E
u
r
o

a
r
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s
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e
r
m
a
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O
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r
a
z
i
l
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a
p
a
n
U
n
i
t
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d

S
t
a
t
e
s
W
o
r
l
d
R
u
s
s
i
a
I
n
d
i
a
C
h
i
n
a
Estimate
2012
Forecast
2013
0.4 0.3
0.1
0.2
0.6
0.9
1.4
1.5
1.6
2.2
3.3
3.4
4.5
7.5
42
Annual Report 2012
the OeKB CEE Business Climate Index. This indicator
of business expectations fell in the fourth quarter of
2012 for the second time in succession, pointing to
declining optimism about performance in the next six
months. The regions high potential, however, remains
unquestioned: A glance at the investment strategies
shows that most direct investors are maintaining their
local presence even in difficult economic times.
In Austria, GDP growth in 2012 receded to 0.6%. The
economy lost vigour in the second half of the year in
particular, due in part to the challenging international
environment. Thus, the economic frailty in important
European markets like Italy, the Czech Republic and
Hungary weighed on exports. The significant rise in
exports to non-EU countries only partly offset the drop
in intra-EU demand. On balance for 2012, the Austrian
Institute of Economic Research (WIFO) predicts slen-
der real growth of 0.8% in merchandise exports.
While the investment climate in the year under review
was also hurt by the level of uncertainty in Europe,
private consumption again had a stabilising effect.
Remarkably, inflation pressure decreased from the
prior year and prices in Austria, at average inflation of
2.4%, thus were among the most stable in Europe.
Conditions in the labour market as well compared fa-
vourably to the rest of the region. The Austrian unem-
ployment rate last year by the Eurostat definition was
4.3%. In 2013 joblessness is expected to rise moder-
ately, not least because of the somewhat lacklustre
macroeconomic outlook for Austria (with forecast
GDP growth of just 1%).
International financial markets
In the worlds financial markets, 2012 was a year
of sometimes high volatility. The escalation of the
euro crisis, the slowdown in the world economy and
world trade, and political tension in the Middle East
heightened the global uncertainty and market partici-
pants general loss of confidence. However, from the
middle of 2012, various measures by central banks,
especially the ECB, led to a significant easing of the
strain in financial markets. The main events that
turned the tide included the decision to conduct Out-
right Monetary Transactions, the establishment of
the European Stability Mechanism, initiatives to
strengthen financial stability through a banking union,
the reaching of an agreement on the bailout for
Greece, and generally the monetary policy easing in
the European core markets, the USA, Japan and
emerging markets. Heartened by these measures,
equity markets rallied vigorously. For the year as a
whole, important stock indices such as the S&P 500
and the Euro Stoxx 50 registered gains of 13% to 14%,
and the Nikkei 225 even rose by 23%.
Maastricht criteria Sources: European Commission, OECD
National finances in 2012 Public debt (horizontal axis) and budget deficits (vertical axis), in % of GDP
-12
-9
-6
-3
0
0 30 60 90 120 150 180 240 210
Finland
Germany
Denmark
Netherlands
Austria
Eurozone
Belgium
France
Spain
United Kingdom
Portugal
United States Ireland
Italy
Greece
Japan
43
Annual Report 2012
In bond markets, long-term government bond yields
tended to fall, with some countries instruments
reaching record lows. Thus, in July 2012, yields of
10-year US Treasury notes were at their lowest level
in over 200 years. In Europe the countries which had
been hit hardest by the crisis also saw bond yields de-
cline, along with spreads of credit default swaps: Be-
tween the end of August and early December, yields
of Greeces long-term sovereign debt instruments fell
by more than 800 basis points, while Portugals saw a
decrease of 184, Spain's declined by 148 and Italys
eased by 141 basis points.
Austrian financial market
The Austrian equity market experienced significant
swings in 2012, as documented by the performance
of the ATX. After a strong advance in the first quarter,
Austrias headline blue chip index lost considerable
ground in the middle of the year amid the general
state of trepidation in financial markets. Only in the
second half of the year did equity investors slowly
regain their confidence, driving a continual rising trend
for the index. At the end of 2012 the ATX stood at
2,401.21 points, a gain of 26.9% for the year. On the
other hand, the all-time high around 5,000 marked in
summer 2007 remained a distant memory.
In 2012 the Vienna stock exchange struggled with
receding turnover and falling liquidity. The years
average monthly trading volume of EUR 3.0 billion was
well below the 2011 figure of EUR 5.0 billion. In equity
corporate actions as well, market activity was limited:
2012 brought only three capital increases and no
initial public offering. In a striking trend, overall, barely
one-fifth of equity deals in Austrian securities now
occur on the exchange. To save expenses and by-pass
regulations, most transactions are already executed
off exchange.
The picture was much more positive in the Austrian
bond market, particularly for corporate bonds. In total
last year, 29 corporate bonds were placed with a
volume of EUR 5.5 billion, further improving on the
already strong prior years 23 bond issues worth a
total of EUR 3.3 billion. As the cost of bank credit has
risen with banks' own higher borrowing costs and
more stringent capital and liquidity requirements,
companies are increasingly turning to the capital
market for funding.
Regarding government bonds, investors continue to
see Austrian treasury instruments as a safe haven.
Thanks to comparatively good fundamentals, the
yield for the countrys ten-year federal bonds eased
in 2012 from 2.9% to 1.75%. As a result the Republic
of Austria was able to borrow relatively inexpensively,
despite the loss of the top rating from bond rating
agency Standard & Poors. The favourable conditions
are illustrated by the yield spread to the German
benchmark 10-year Bund, which in 2012 narrowed
from 107 to 43 basis points.
Financial results in 2012
The low rate of Austrian export growth in 2012 was
reflected in the volume of funding provided by the
OeKB Group. While lending exposure under the Export
Financing Scheme decreased markedly as a result of
early loan repayments and of lower financing of out-
ward foreign direct investment, the balance of loans
outstanding from OeKB subsidiary Exportfonds to
small and medium-sized businesses was boosted from
about EUR 825 million to EUR 1,039 million.
OeEB, the development bank, likewise expanded its
total project portfolio, from approximately EUR 290
million to EUR 498 million.
With interest rates having fallen in the course of the
year, the income from securities investments (both
the Groups own investment portfolio, and the liquid
assets portfolio that supports the Export Financing
Scheme) declined to EUR 20.0 million (2011: EUR
25.5 million). The income from unconsolidated inves-
tees was almost unchanged at around EUR 1.6 million
(2011: EUR 1.7 million).
The Groups net interest income, which included these
negative effects and the positive one-time impact of
early loan repayments, was EUR 96.2 million (2011:
EUR 94.5 million).
44
Annual Report 2012
The share of results of equity-accounted investees
(joint ventures) grew by EUR 2.2 million to EUR 9.3
million. This was made possible by the replication of
the prior years outstanding result in the private credit
insurance group.
The item impairment losses on loans and advances
and other credit risk provisions represents the years
change in individual impairment charges recognised
in respect of microcredits extended by OeKB.
The continuing turmoil in capital markets especially
during the first part of the year and the resulting lower
trading volumes made for a small decline in custody
and transaction fees, while the financial data service
and notification office benefited from an increase in
demand.
The income from fees for the processing of export
guarantees on behalf of the Austrian government and
for administering the guarantees under the Corporate
Liquidity Support Act (ULSG) rose modestly. The net
fee and commission income of Oesterreichische Ent-
wicklungsbank (OeEB), the development bank, de-
clined significantly as a consequence of a greater
volume of projects and the resulting guarantee premi-
ums paid. In total, the OeKB Group recorded net fee
and commission income of EUR 49.6 million in 2012
(2011: EUR 50.1 million).
Administrative expenses increased to EUR 82.4 mil-
lion from the prior-year level of EUR 79.9 million. Of
this increase, about EUR 1.9 million was contributed
by a change in the discount rate for the calculation of
pension and termination benefits. The increase in
other administrative expenses, at 0.8%, was less than
the rate of inflation. As the additional office space
from the top-floor expansion at the Strauchgasse 1-3
address was taken into use in 2012, depreciation and
amortisation of non-current assets increased as pre-
viously predicted, by about EUR 0.5 million.
Net other operating income, at EUR 6.2 million, was
down somewhat from the prior years figure of EUR
6.6 million, as the increase in the stability tax (the new
levy on banks) could not be fully offset by higher in-
come.
Operating profit was EUR 78.8 million. This repre-
sented an improvement of EUR 0.4 million from the
prior years EUR 78.4 million.
The net gain of EUR 27.8 million on financial instru-
ments reflected the volatility in financial markets
(2011: net loss of EUR 13.4 million). The net gain of
EUR 29.1 million on disposal and valuation of securi-
ties was strongly driven by realised gains on bond
redemptions and by positive valuation effects for equi-
ties and bonds, which, because of the measurement
100%
+6.2%
161.2
Operating income of the OeKB Group compared to 2011 and 2007, EUR million
2012 2007 2008 2009 2010 2011
96.2
152.3
93.0
162.4
106.3
162.1
107.7
159.4
94.0
158.3
94.5
Of which net
interest income
+1.8%
45
Annual Report 2012
of securities at fair value through profit or loss, were
recognised directly in the income statement. In mea-
suring interests in subsidiaries and other investees in
2012, an impairment charge of EUR 1.2 million (2011:
EUR 4.1 million) was recognised on the investment
in the Budapest Stock Exchange. This resulted both
from the depreciation of the Hungarian forint against
the euro and from reduced income expecta tions in
light of the difficult economic and political situation
in Hungary.
Profit before tax amounted to EUR 106.6 million
(2011: EUR 65.1 million). After income tax and non-
controlling interests, profit for the year attributable to
shareholders of OeKB was EUR 82.4 million, com-
pared to EUR 50.2 million one year earlier.
In 2012 not only did operating profit exceed expecta-
tions but the net gain on financial instruments was
well above budget.
At 31 December 2012, liquid assets in the form of
balances at central banks stood at EUR 124.3 million
(2011: EUR 586.2 million).
Loans and advances to banks decreased with the
lower lending under the Export Financing Scheme, to
EUR 24,549.0 million (2011: EUR 28,736.8 million).
Loans and advances to customers were pushed up
from EUR 1,409.7 million to EUR 1,526.6 million,
thanks largely to an increase in these assets at Ex-
portfonds. A result of the lower volume of lending to
banks was a reduction in debt securities in issue (to
EUR 27,281.6 million from the 2011 level of EUR
33,350.4 million).
The change in holdings of other financial instruments
from EUR 1,468.1 million to EUR 1,490,2 million in
2012 is explained mostly by the rise in security prices
during the financial year.
As a result of the excellent earnings trend in the pri-
vate credit insurance group, interests in equity-
accounted investees (joint ventures) increased in
2012 to EUR 64.0 million (2011: EUR 57.9 million).
The decline in value of other assets from EUR 5,629.2
million to EUR 4,913.2 million in 2012 was attribut-
able to the reduced positive fair values of derivatives
used to hedge interest rate and currency risks in the
Export Financing Scheme.
Total assets at 31 December 2012 amounted to
EUR 32,767.9 million (2011: EUR 37,978.2 million).
Financial performance indicators
The cost/income ratio inched higher to 51.1% on
increased administrative expenses. (2011: 50.5%).
100%
+19.8%
+3.1% 82.4
Administrative expenses of the OeKB Group compared to 2011 and 2007, EUR million
2012 2007 2008 2009 2010 2011
55.3
68.8
44.2
71.7
45.8
76.9
50.7
80.1
53.3
79.9
53.4
Of which staff costs
46
Annual Report 2012
In 2012 the Groups equity was boosted from
EUR 599.4 million to EUR 662.0 million.
Available consolidated regulatory capital under
section 24 Austrian Banking Act increased in 2012 by
EUR 30.7 million to a new total of EUR 521.2 million.
The capital adequacy ratio (regulatory capital resour-
ces as a percentage of risk-weighted assets) decrea-
sed from 163.8% in 2011 to 149.3% as a result of
higher risk-weighted assets.
Return on equity (consolidated profit for the year as a
percentage of Tier 1 capital) rose in 2012 from 13.6%
to 20.7% amid the positive impact of the net gain on
financial instruments.
Non-financial performance indicators are presented
in section 4, Human resources.
Research and development
In view of the nature of the OeKB Groups business
activities (banking and insurance), no research and
development is conducted.
Claims for damages
There are two law suits of investors pending who
bought certificates issued by OeKB for registered
shares of Meinl European Land Ltd. (MEL). The law
suit served on 30 July 2010 amongst others on OeKB
asks for payment of about EUR 2,790,000 and was
dismissed by judgment of 24 January 2013 (appeal
still possible). The second law suit for damages is a
model law suit claiming for payment of around EUR
48,500. It is based on the grounds that OeKB as
issuer of the MEL certificates did not arrange for an
ad-hoc notice pursuant to the Stock Exchange Act on
the share-buy-back action in spring 2007 undertaken
by MEL (nowadays: Atrium). In the evaluation of
OeKBs general counsel chances of success of this
law suit are practically zero, taking in account
judgments of the first and second instance in another
model law suit based on other legal grounds and
decided in favor of OeKB.
Events after the balance sheet date
There were no reportable events after the balance
sheet date.
100%
+42.0%
521.2
Regulatory capital of OeKB Group under Austrian Banking Act compared to 2011 and 2007, EUR million
2012 2007 2008 2009 2010 2011
397.4
367.2
284.3
375.8
298.9
422.5
317.0
459.2
342.4
490.5
367.8
Of which
Tier 1 capital
+6.3%
47
Annual Report 2012
Outlook for 2013
For the macroeconomy, 2013 will be a difficult year
and the uncertainties will continue, albeit with
regional differences. This poses a very real challenge
for the Austrian export industry. As in the past, in
these demanding times OeKB will continue to offer
exporters support both through export credits and
through guarantees for the financing of business
acquisitions and company start-ups. However, be-
cause of the expiry profile of the portfolio of export
financing contracts especially as a result of the re-
duction in financing of direct investments it appears
likely that, depending on the actual course of busi-
ness, credit disbursements will decrease in 2012 by
approximately EUR 2.0 billion from the prior year.
For 2013, after outstanding results in 2012 that
defied expactations, the two credit insurance sub -
sidiaries, OeKB Versicherung AG and PRISMA
Kreditversicherungs-AG, too are poised for a difficult
2013 in view of rising insolvency forecasts.
The sentiment in financial markets has brightened dra-
matically since the middle of 2012. This improvement
was fuelled by market participants growing view that
a break-up of the eurozone is no longer looming (or
at least not imminent). The extraordinary monetary
policy measures of the ECB above all the announce-
ment of the programme of Outright Monetary Trans-
actions under which the Bank can purchase unlimited
quantities of euro area government bonds induced
a very positive mood in bond markets. The risk premi-
ums on Austrian treasury instruments contracted,
which should further improve conditions for OeKBs
access to the market. In January 2013, Standard &
Poors affirmed the rating of AA+ for the Republic of
Austria and for OeKB and adjusted the rating outlook
to stable.
Overall, the companies of the OeKB Group are well
prepared to meet the challenges ahead and are
expecting a sustained good, stable trend in operating
income.
Cost/income ratio of the OeKB Group EUR million
2012 2007 2008 2009 2010 2011
82.4
Administrative
expenses
Operating income
161.2
I 51.1%
68.8
152.3
71.7
162.4
76.9
162.1
80.1
159.4 158.3
79.9
I 45.2% I 44.1%
I 47.5%
I 50.2%
I 50.5%
48
Annual Report 2012
2 System of internal control and of risk management
OeKBs system of internal control (the internal con-
trol system, or ICS) consists of five components: the
control environment, risk assessment, control activi-
ties, information and communication, and monitoring.
The purpose of the internal control system is to sup-
port management in implementing effective and conti-
nually improving internal controls regarding, first,
compliance with applicable legal requirements and
with generally accepted accounting standards, se-
cond, the reliability of operational information and,
third, the effectiveness and efficiency of operational
processes. The ICS is intended to ensure compliance
with policies and regulations and to create the neces-
sary conditions for specific control activities in the key
processes within accounting and financial reporting.
The key objectives include safeguarding the presenta-
tion of a fair and transparent view of the financial posi-
tion, results of operations and cash flows.
Control environment
The most fundamental aspect of the control environ-
ment is the corporate culture in which management
and employees operate. Central organisational princi-
ples are the avoidance of conflicts of interest through
strict separation of risk origination and risk oversight,
the transparent documentation of core processes and
control activities, and rigorous application of the prin-
ciple of dual control (i.e., transactions require approval
by at least two individuals). The Internal Audit function
independently and regularly verifies the adherence to
internal rules, including also the accounting rules. The
head of Internal Audit reports directly to the Executive
Board and Supervisory Board.
Risk assessment
The goal of risk management at OeKB Group is to de-
tect all identifiable risks and, as appropriate, take
measures to avert and prevent risks through optimi-
sed processes. This also includes the risk of material
misstatement of transactions. The risk management
system includes all processes that serve to identify,
analyse and evaluate risks. Risks are identified und
monitored by management, with a focus on risks that
are deemed to be material. The internal control activi-
ties performed by the responsible functions are regu-
larly evaluated.
Control activities
OeKB Group has a governance system that sets out
structures, processes, functions and responsibilities
within the company. Care is taken to implement all
control activities in such a way as to ensure that
potential errors or discrepancies in financial reporting
are avoided or discovered and corrected.
Control activities regarding information technology
security represent a cornerstone of the internal
control system. Thus, the separation of sensitive
responsibilities is supported by restrictiveness in the
assignment of IT privileges. For accounting and
financial reporting, the software SAP ECC 6.0 is used.
The functioning and effectiveness of this accounting
system is assured, among other ways, by automated
IT controls installed in the system.
In subsidiaries, the respective management has
ultimate responsibility for the establishment and
design of a system of internal control and of risk
management appropriate to the respective companys
requirements, particularly in relation to the accounting
process, and for compliance with the associated
Group-wide policies and rules.
Information and communication
The Supervisory Board is briefed at least every quarter
with a comprehensive report on the balance sheet, in-
come statement and other management accounting
and risk data. The Executive Board receives this infor-
mation in regular, significantly more detailed reports
prepared monthly or even more frequently. The Execu-
tive Board also has a standing Asset Liability Manage-
ment Committee and Risk Management Committee
that receive, analyse and monitor these data.
49
Annual Report 2012
Monitoring
Financial statements intended for publication undergo
a final review by accounting management staff and the
Executive Board before being forwarded to the Audit
Committee of the Supervisory Board. By monitoring
compliance with all rules and regulations, OeKB Group
aims to achieve maximum assurance of all business
processes and Group-wide conformity with policies
and procedures. When risks and shortcomings in con-
trols are identified, mitigative measures are promptly
developed and their implementation is monitored.
To be able to assure compliance with requirements
within OeKB Group, compliance is monitored in
accordance with the annual audit plan of the Internal
Audit department.
3 Risk management
Risk management essentially, the identification, mo-
nitoring, assessment, reporting, planning and treat-
ment of risks consists of important processes
integrated in Group strategy that are designed to en-
sure the lasting stability and profitability of the enter-
prise. Every risk assumed by the OeKB Group is
accepted consciously and is consistent with the Exe-
cutive Boards risk policy and strategy, which aims to
assure a sustained stable return on equity through a
conservative approach to all risks, including financial
risks and risks arising from business operations in
general.
The banks special position by virtue of its public
mandate from the Austrian government and of its
role as a central provider of essential services to the
capital market, along with the associated responsibi-
lity for the Austrian economy, are key determinants of
OeKB Groups business strategy and risk policy. This
approach is also traditionally reflected in a sustainable
compensation policy (see note 54).
The Internal Capital Adequacy Assessment Process
(ICAAP) implemented in the OeKB Group forms an in-
tegral part of the management process as a measure-
ment and control tool. A key variable in the
measurement and management of OeKB Groups risk
is economic capital; it is calculated using the concept
of Value at Risk (VaR) over a one-year time horizon.
In the ICAAP, credit risk, market risk, liquidity risk,
operational risk and business risk are taken into ac-
count quantitatively, through the calculation of econo-
mic capital (business risk is considered to be the risk
that earnings will suffer as a result of changes in the
business environment such as markets, customer
behaviour or technology or of inappropriate or
inadequately implemented business strategy).
In the calculation of risk coverage, the economic
capital required is compared with the economic
capital available. The comparison is performed in a
multi-tier system addressing various risk coverage
objectives. Liquidity risk is managed primarily via the
specified survival period, which is determined using
liquidity gap analysis under stress scenarios.
50
Annual Report 2012
4 Human resources
Given the Groups central significance for Austrias
capital market and export industry, OeKB and its
subsidiaries are very aware of the importance of highly
qualified and motivated staff. Service quality and
expertise, combined with sustained earnings-, cost-
and risk-consciousness, are the critical success
factors.
OeKBs long-term success depends on the commit-
ment of its people. As a responsible employer, it is im-
portant for OeKB to know the interests and needs of
its staff. By way of an external review of working con-
ditions, in 2012 OeKB was successfully recertified
through the "Work and Family" audit. The certificate
was awarded in November of the year.
In 2012 a competency framework was developed
for OeKB that defines the qualifications and skills
which management must have so that OeKB can con-
fidently meet the challenges of the years ahead. Using
specific feedback loops, managers self-perception
and others perception of them are compared and
development plans agreed.
A variable pay component under the compensation
policy is based on personal performance, corporate
results and a market benchmark. The compensation
policy was reviewed for its conformity with new legal
requirements (see the notes to the consolidated finan-
cial statements). Comparable remuneration models
are in place at Oesterreichische Entwicklungsbank
and at Exportfonds.
The Groups staff count at the end of 2012 was 406
full-time equivalents (prior year: 401); the average
count during the year was 398 FTE (prior year: 397).
The concerted efforts of the entire staff enabled the
Group, even in the difficult market situation, to
generate an operating profit of EUR 197,984 per
full-time equivalent.
The Executive Board would like to express its
gratitude and appreciation to all employees for their
commitment and contribution to the good business
performance achieved. This sincere thank you also
goes to the Staff Council, whose members, true
to tradition, represented the interests of both the
employees and the bank.
In 2012 the further development of the risk measure-
ment and control processes focused on refining the
limits system and credit risk management. This in-
cluded a complete revision of the rating and mapping
methodology. Priority was also given to the prepara-
tions for Capital Requirements Directive IV (CRD IV)
and the Capital Requirements Regulation (CRR), as
well as changes in the reporting system. These initia-
tives are expected to remain at the top of the agenda
in 2013.
Details on the risk management of the OeKB Group
are provided in notes 48-52 to the consolidated
financial statements.
51
Annual Report 2012
Vienna, 20 February 2013
Oesterreichische
Signed by the Executive Board
1
OeKB, including the fully consolidated institutions OeEB and Exportfonds.
2012 2011
Total number of employees as of 31 December 428 428 434
Of whom part-time employees 86 87 93
Total employees in full-time equivalents 401 401 406
Average number of employees 396 397 398
Up to 30 42 40 41
More than 30 and up to 40 114 105 91
More than 60 11 10 16
Up to 5 97 107 112
More than 40 5 3 3
OeKB Groups staff
1
By age in years
By length of service in years
2010
Turnover rate 1.6% 4.2% 1.6%
Sick days per year and employee 6.9 8.6 8.2
Training days per year and employee 4.9 5.1 5.1
Proportion of total positions held by women 57.0% 58.2% 57.4%
Proportion of management pos. held by women 31.7% 34.4% 34.4%
Proportion of positions that are part-time 20.3% 20.3% 21.4%
Indicators
52
Annual Report 2012
At 31 December 2012, as one year earlier, there were no exercisable conversion or option rights. The stated
earnings per share therefore represent basic earnings per share and are not subject to dilution.
Interest and similar income 623,825 774,225 19.4
Interest and similar expense (527,651) (679,677) 22.4
Share of results of equity-accounted investees 14 9,330 7,144 + 30.6
Impairment losses on loans and advances and other credit risk provisions 15 (141) (36) + 291.7
Net fee and commission income 16 49,611 50,076 0.9
Fee and commission income 57,130 57,025 + 0.2
Fee and commission expense (7,519) (6,949) + 8.2
Administrative expenses 17 (82,404) (79,864) + 3.2
Net other operating income 18 6,228 6,565 5.1
Net gain or loss on financial instruments 19 27,801 (13,371)
Income tax and other taxes 20 (23,879) (14,709) + 62.3
Attributable to: non-controlling interests (287) (186) + 54.3
EUR thousand Notes 2012 Change
in %
2011
Profit for the year attributable to OeKB shareholders, in EUR thousand 82.433 50,167
Average number of shares outstanding 880,000 880,000
Earnings per share in EUR 93.67 57.01
2012 2011
Earnings per share
OeKB Group consolidated financial statements 2012
Consolidated income statement of the OeKB Group
Net interest income 14 96,174 94,548 + 1.7
Operating profit 78,798 78,433 + 0.5
Profit before tax 106,599 65,062 + 63.8
Profit for the year 82,720 50,353 + 64.3
Profit for the year attributable to shareholders of the parent 82,433 50,167 + 64.3
53
Annual Report 2012
Change
in %
31 December
2011
EUR thousand Notes
Cash and balances at central banks 22 124,266 586,152 78.8
Loans and advances to banks 23 24,549,025 28,736,788 14.6
Loans and advances to customers 24 1,526,590 1,409,686 + 8.3
Allowance for impairment losses on loans and advances 7, 25 (401) (259) + 54.8
Other financial instruments 26 1,490,178 1,468,109 + 1.5
Interests in equity-accounted investees 28 63,983 57,888 + 10.5
Property and equipment and intangible assets 27 33,262 31,322 + 6.2
Current tax assets 34 409 438 6.6
Deferred tax assets 34 67,450 58,862 + 14.6
Other assets 29 4,913,172 5,629,229 12.7
Assets
Consolidated balance sheet of the OeKB Group
Total assets 32,767,934 37,978,215 13.7
Change
in %
31 December
2012
31 December
2011
EUR thousand Notes
Deposits from banks 30 1,692,681 957,821 + 76.7
Deposits from customers 31 674,257 600,983 + 12.2
Debt securities in issue 32 27,281,609 33,350,392 18.2
Provisions 33 859,917 668,874 + 28.6
Current tax liabilities 34 5,355 2,673 + 100.3
Deferred tax liabilities 34 19,671 14,605 + 34.7
Other liabilities 35 1,572,479 1,783,462 11.8
Equity 36 661,965 599,405 + 10.4
Attributable to non-controlling interests 4,180 4,033 + 3.6
Liabilities and equity
Total liabilities and equity 32,767,934 37,978,215 13.7
31 December
2012
54
Annual Report 2012
The amounts of called-up share capital and capital reserves shown above are the same as those reported in the
separate financial statements of Oesterreichische Kontrollbank AG.
More information on changes in equity is provided in note 36.
Consolidated statement of changes in equity of the OeKB Group
Changes in retained earnings 30,147 (30,147)
Profit for the year 82,433 287 82,720
Dividends paid (20,020) (140) (20,160)
EUR thousand Called-up
share capital
Capital
reserves
Retained
earnings
Profit for the year
attributable to
OeKB shareholders
Non-controlling
interests
Total equity
At 31 December 2012 130,000 3,347 442,005 82,433 4,180 661,965
2012
At 1 January 2012 130,000 3,347 411,858 50,167 4,033 599,405
Changes in retained earnings 51,963 (51,963)
Profit for the year 50,167 186 50,353
Dividends paid and Supervisory Board emoluments (20,020) (140) (20,160)
EUR thousand Called-up
share capital
Capital
reserves
Retained
earnings
Profit for the year
attributable to
OeKB shareholders
Non-controlling
interests
Total equity
At 31 December 2011 130,000 3,347 411,858 50,167 4,033 599,405
2011
At 1 January 2011 130,000 3,347 359,895 71,983 3,987 569,212
55
Annual Report 2012
Further detail on cash and cash equivalents is given in note 22. Additional information on the cash flow
statement is provided in note 37.
Non-cash items included in profit before tax, and adjustments to
reconcile profit before tax to cash flows from operating activities:
Depreciation, amortisation and impairment of property and equipment and intangible assets 4,535 4,046
Changes in provisions 5,403 6,423
Gains/losses from disposal and/or valuation
of investments and property and equipment 169,946 (751,155)
Unrealised gains/losses from movements in exchange rates (189,445) 769,252
Other non-cash items (11,991) 4,361
Changes in operating assets and liabilities,
after adjustment for non-cash components:
Loans and advances to banks 3,905,056 (457,437)
Loans and advances to customers (117,312) (3,609)
Securities at fair value through profit or loss 53,029 (119,221)
Other operating assets 14,239 (1,788)
Deposits from banks 741,278 (453,303)
Deposits from customers 73,274 (7,070)
Debt securities in issue (5,548,610) 1,498,899
Other operating liabilities 34,270 1,415
Interest and dividends received 965,561 701,457
Interest paid (616,564) (695,561)
Income tax paid (24,654) (32,639)
Proceeds from disposal of:
Property and equipment and intangible assets 6 2
Purchase of:
Interests in unconsolidated companies
Property and equipment and intangible assets (6,486) (6,022)
Issue of shares
Dividends paid (20,020) (20,020)
Net cash (used in)/from operating activities (435,386) 529,132
Net cash used in investing activities (6,480) (6,020)
Net cash used in financing activities (20,020) (20,020)
EUR thousand 2012 2011
Net cash (used in)/from operating activities (435,386) 529,132
Profit before tax 106,599 65,062
Cash and cash equivalents at end of period 124,266 586,152
Net cash used in investing activities (6,480) (6,020)
Consolidated cash flow statement of the OeKB Group
Net cash used in financing activities (20,020) (20,020)
Cash and cash equivalents at beginning of period 586,152 83,060
56
Annual Report 2012
Notes to the consolidated financial statements
Oesterreichische Kontrollbank Aktiengesellschaft (OeKB AG or OeKB) is a special-purpose bank with its
registered office in Vienna, Austria. The activities of the OeKB Group consist largely of export services and
capital market services.
OeKB AG prepared the consolidated financial statements for the year ended 31 December 2012 in accordance
exclusively with International Financial Reporting Standards (IFRS) as adopted by the European Union, thus also
satisfying the requirements of section 59a Austrian Banking Act and section 245a Austrian Commercial Code.
In preparing these financial statements, the OeKB Group applied all IFRS (including IAS) and their interpretations
by the International Financial Reporting Interpretations Committee (IFRIC, formerly Standard Interpretations
Committee or SIC) that were effective at the balance sheet date.
With the exception of the following items, the consolidated financial statements were prepared on a historical
cost basis:
Derivative financial instruments (measured at fair value).
Financial instruments at fair value through profit or loss.
For the presentation of the traditional income statement and of other comprehensive income, a choice of two
formats is available under IAS 1: either two separate statements the traditional income statement and a
statement of comprehensive income or a single statement that combines both these statements. Additionally,
IAS 1 introduces new (non-binding) titles for some of the financial statements used under IFRS: In IAS 1 the
balance sheet is referred to as a statement of financial position, the income statement (in the case of the
single-statement option) as a statement of comprehensive income and the cash flow statement as a state-
ment of cash flows. However, the titles are not mandatory and have not been adopted by the OeKB Group.
No statement of comprehensive income is required, as no income or expense was recognised directly in equity
in the year under review or in the comparative prior periods.
Changes in accounting methods
In 2012 there were no changes in the accounting policies applied by the OeKB Group.
Uniform accounting policies are used throughout the Group. The accounting principles described below are
consistently applied to all financial years represented in these consolidated financial statements.
New standards and interpretations not yet applied
The following major new and revised accounting standards and interpretations have been adopted into
European Union law and will become effective in the future, but have no impact on the OeKB Group, as
there are no transactions to which they apply.
Accounting policies
of the OeKB Group
(1) General information
57
Annual Report 2012
The revised IAS 19 (Employee Benefits) effective from 2013 removes the option to recognise actuarial gains
and losses in the income statement. In the future these gains and losses will be recognised directly in equity
(through the statement of comprehensive income).
Critical assumptions and judgements
The preparation of the consolidated financial statements in accordance with IFRS requires the Executive Board
to make judgements and to proceed on assumptions about future developments. These judgements and
assumptions can have a material effect on the recognition and measurement of the assets and debt, the
disclosure of other liabilities at the balance sheet date, and the amounts of income and expenses reported for
the financial year.
The following assumptions involve a not insignificant risk that they may lead to a material change in the carrying
amounts of assets and liabilities in the subsequent financial year:
I Financial instruments for which no active market exists are reviewed for impairment by using alternative
discounting-based valuation methods. The inputs used for the determination of fair value are based in part
on assumptions about future developments.
I The measurement of existing retirement and termination benefit obligations involves assumptions regarding
interest rate, age at retirement, life expectancy, employee turnover and future increases in pay and benefits.
I The recognition of deferred tax assets is based on the assumption that sufficient tax income will be realised
in the future to utilise them.
I The off-balance sheet obligations from guarantees and from other contingent liabilities are regularly reviewed
as to whether they require recognition in the balance sheet.
The estimates and underlying assumptions are reviewed on an ongoing basis. The actual values may deviate
from the assumptions and estimates made if the general conditions do not follow the trends expected at the
balance sheet date. Changes in estimates of assets, liabilities, income and expense are recognised in the
balance sheet or in the income statement as they become known, and the assumptions adjusted accordingly.
IFRS 1 First-time Adoption of IFRS (amendments) 1 January 2013
IFRS 7 Financial Instruments: Disclosures (amendments) 1 January 2013
IFRS 10 Consolidated Financial Statements (new) 1 January 2014
IFRS 11 Joint Arrangements (new) 1 January 2014
IFRS 12 Disclosure of Interests in Other Entities (new) 1 January 2014
IFRS 13 Fair Value Measurement (new) 1 January 2014
IAS 12 Income Taxes (amendments) 1 January 2013
IAS 27 Separate Financial Statements (amendments) 1 January 2014
IAS 28 Investments in Associates and Joint Ventures (amendments) 1 January 2014
IAS 32 Financial Instruments: Presentation (amendments) 1 January 2014
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (new) 1 January 2013
Effective date
58
Annual Report 2012
(3) Methods of consolidation
31 December 2012 31 December 2011
Fully consolidated companies 2 2
Equity-accounted investees (joint ventures) 2 2
Unconsolidated subsidiaries held at cost 2 2
Other investments in companies held at cost 11 11
Number of companies incl. in the consolidated financial statements or held at cost, by accounting method
Total 17 17
The consolidation of the Group accounts involves purchase-method accounting; equity-method accounting;
consolidation of intercompany balances, expenses and revenues; and the elimination of intercompany profits.
The separate annual accounts of the fully consolidated entities and of the entities accounted for by the equity
method are uniformly made up to 31 December.
The Group elected to make use of an option under IFRS 1 on 1 January 2004 (the date of transition to IFRS) by
adopting the carrying amounts from the initial consolidation that was performed under the Austrian Commercial
Code, or UGB. Acquisitions of subsidiaries are thus accounted for by the purchase method. Under this method,
the cost of the acquired ownership interest is offset against the Groups share of the subsidiarys net assets
at the time that control passes to the Group. As in the prior periods, the provisions of IFRS 3 on business com-
binations were not yet applied in the year under review, as no relevant transactions occurred. Intercompany
balances, expenses, revenues, profits and losses are eliminated when significant.
Companies classified as joint ventures are accounted for under the equity method and are reported as interests
in equity-accounted investees. Measurement by the equity method is based on local financial statements,
adjusted to adhere to the Groups uniform accounting methods. The annual results are obtained from the latest
available annual separate financial statements and sub-groups consolidated financial statements, and the
changes in equity are thus recognised in the year in which they occur. Dividends paid by joint ventures to the
Group parent company are eliminated by reversing entries. Profits or losses for the year generated by joint ven-
tures are shown in the consolidated income statement within share of results of equity-accounted investees.
A list of all entities that are represented in the consolidated financial statements of the OeKB Group is provided
in note 28, Companies wholly or partly owned by OeKB AG. Three companies are fully consolidated: Oesterrei-
chische Kontrollbank AG (OeKB, the Group parent) and the Vienna-based Oesterreichische Entwicklungsbank
AG (OeEB) and sterreichischer Exportfonds GmbH (Exportfonds). There was no change during the
financial year in the scope of consolidation, i.e., in the lists of entities that are fully consolidated, included by
the equity method, or unconsolidated and held at cost.
Representing the unconsolidated entities held at cost, two subsidiaries were not consolidated (prior year: two);
they are of minor overall significance to the Groups financial position and results of operations. The combined
total assets of these two entities represent less than 0.01% of the Groups consolidated total assets, and
their combined profit for the year represents less than 0.12% of the Groups consolidated profit for the year.
In the OeKB Groups consolidated financial statements, two companies (prior year: two), which are joint
ventures, were accounted for by the equity method.
(2) Scope of consolidation
59
Annual Report 2012
Loans and advances to banks and customers
Loans and advances to banks and customers, to the extent that they are originated by the Group, are carried
at their nominal amount or at amortised cost, before deduction of impairment losses and including accrued
interest. Individual allowances for impairment losses are recognised for identifiable individual credit risks and
for country risks. Impairment losses are not deducted from the corresponding loans and advances but are
reported as a separate line item on the face of the balance sheet. Most of the loans and advances to banks
made under OeKBs Export Financing Scheme are guaranteed by the Republic of Austria. No collectively
assessed provision for credit losses was required.
Other financial instruments
The item other financial instruments consists of all fixed income and variable income securities (including
equities) and investments in unconsolidated subsidiaries and smaller shareholdings in other companies. In other
words, investments consist of all securities and all unconsolidated investees. Effects on profit or loss are shown
in the income statement within net gain or loss on financial instruments. The date of initial recognition or
derecognition of other financial instruments is the settlement date.
Bonds and other fixed income securities as well as equity shares and other variable income securities are
designated at fair value through profit or loss. As the OeKB Group does not have a trading portfolio, these
securities form part of the investment portfolio, which is managed on the basis of market values. The securities
are measured at fair value at the balance sheet date, with changes in value recognised in profit or loss.
The investments in unconsolidated subsidiaries and other companies are initially measured at amortised cost.
(5) Financial instruments
Currency Mid rate Currency Mid rate Currency Mid rate Currency Mid rate
AUD 1.2712
CAD 1.3137
CHF 1.2072
CZK 25.151
Foreign exchange reference rates at 31 December 2012
DKK 7.4610
GBP 0.81610
HRK 7.5575
HUF 292.30
JPY 113.61
NOK 7.3483
PLN 4.0740
RON 4.4445
SEK 8.5820
USD 1.3194
(4) Foreign currency translation
The consolidated financial statements are presented in thousands of euros, rounded by the standard round-
half-up convention. The euro is also the OeKB Groups functional currency.
Assets and liabilities denominated in foreign currencies are translated at the reference exchange rates of the
European Central Bank at the balance sheet date of 31 December 2012.
60
Annual Report 2012
Financial liabilities
Financial liabilities are initially measured at their actual proceeds. Premiums, discounts or other differences
between the proceeds and the repayment amount are realised over the term of the instrument by the effective
interest method and recognised in net interest income (amortised cost). Zero coupon bonds are recognised at
present value. Where derivatives are used to hedge the interest rate risk or currency risk associated with liabili-
ties, the hedged debt instruments are recorded at fair value in order to avoid accounting mismatches.
Derivative financial instruments
The fair value of derivative contracts is calculated by generally accepted methods. Derivatives are recognised
at the trade date.
Those derivative transactions which were entered into substantially to hedge the market values of banking book
items in the balance sheet are recognised at their market value (their fair value, being the clean price) within other
assets or other liabilities. To avoid accounting mismatches, the change in market values of the hedged balance
sheet items, like that of the derivatives, is recognised in profit or loss within net gain or loss on financial
instruments.
The exchange rate guarantee of the Republic of Austria under the Export Financing Guarantees Act (in German:
Ausfuhrfinanzierungsfrderungsgesetz, published in Federal Law Gazette No. 216/1981, as amended), which is
used to hedge exchange rate risks under the Export Financing Scheme, is treated as a derivative contract and
measured at fair value.
The fair value of listed instruments is deemed to be the quoted market price at the balance sheet date (level 1).
Unlisted instruments are measured using the present value method (present value of discounted future cash
flows) or suitable option pricing models (Black-Scholes models, the multifactor HJM model or the Hull-White
model approach). To the extent possible, the input parameters used for these models are the relevant market
prices and interest rates observed at the balance sheet date that are obtained from widely accepted external
sources (level 2). The net asset values of investment fund units are determined as set out in the Investment
Fund Act.
The allowance for impairment losses on loans and advances and other credit risk provisions relates to impair-
ment of loans and advances, and any provision for credit guarantees. The allowance and provisions are raised
for all identifiable credit risks and country risks. As part of its risk management system, the OeKB Group
employs a credit analysis system and an internal rating procedure. Counterparties are classified into six internal
credit rating categories on the basis of external ratings from internationally recognised rating agencies
(Standard & Poors, Moodys and Fitch). Credit ratings are monitored on an ongoing basis for changes. For
clients without an external rating, internally developed criteria are applied. As a result, all banking book assets
and off-balance sheet business can be classified according to creditworthiness and collateralisation.
(6) Determination of fair value
(7) Allowance for impairment losses on loans and advances and other credit risk provisions
61
Annual Report 2012
Property and equipment comprises land and buildings used by the Group, and fixtures, fittings and equipment.
Land and buildings used by the Group are those which are used primarily for the Groups own business
operations.
1. Property and equipment and intangible assets are recorded at cost less accumulated depreciation and
amortisation. The following useful lives are assumed:
2. Low-value assets with an individual purchase price of up to EUR 400 are depreciated completely in the year
of acquisition. In note 27, Property and equipment and intangible assets, low-value assets are recorded as
additions and disposals in the year of acquisition.
Intangible assets comprise only purchased software. Their value is periodically reviewed.
Sundry liabilities are recorded at amortised cost.
The provisions for pensions, termination benefits and long-service awards are calculated annually by an inde-
pendent actuary using the projected unit credit method, in accordance with IAS 19. The biometric basis for the
calculations consists of the version of the current computation tables by Pagler & Pagler specific to salaried
employees. The key parameters are a discount rate of 3.5% (prior year: 4.75%), an overall rate of salary and
pension increases of up to 3.0% (prior year: 4.125%) which represents the collective-agreement trend and re-
gular multi-employee increases and unscheduled individual-employee increases and an assumed age at retire-
ment of 58 years 9 months for women (prior year: 58 years 6 months) and 63 years 9 months for men (prior
year: 63 years 6 months) based on the transitional provisions of the Austrian public pension scheme (ASVG)
under the Budget Implementation Act 2003. In previous years, the pension obligations for a portion of the staff
were transferred to a pension fund under a defined contribution plan. The employee benefit provisions include
entitlements of former employees who were already receiving a pension before the time of the transfer, and non-
transferred entitlements of present employees. For all active employees, the provisions include a component for
a disability pension. The provision for termination benefits is determined so as to cover the legal and contractual
entitlements. Actuarial gains and losses are fully recognised in the income statement in every financial year.
Years
Buildings 40
Fixtures, fittings and equipment, other than information technology 3 to 10
IT hardware 3 to 5
Software 3 to 5
Useful life
(9) Sundry liabilities
(10) Employee benefit provisions
(8) Property and equipment and intangible assets
62
Annual Report 2012
Other provisions are recognised where all of the following conditions are met: the OeKB Group has a legal or
constructive obligation to a third party as a result of a past event, the obligation is likely to lead to an outflow of
resources, and the amount of the obligation can be reliably estimated.
Provisions are assessed at the amount representing the best estimate of the expenditure required to settle the
obligation. If the present value of the obligation determined on the basis of a market interest rate differs
materially from its nominal amount, the present value of the obligation is used.
In support of the Export Financing Scheme, an interest rate stabilisation provision is maintained to stabilise the
interest rates on export credits, based on the constructive obligation regarding the use of surpluses from the
Export Financing Scheme. This de facto obligation has a dual basis: it arises from the rules for the setting of
interest rates in the export financing scheme, which specify fixed margins for OeKB; and from a directive from
the Austrian Ministry of Finance on the use of surpluses from fixed interest facilities. The amount allocated to
the provision is the total of i) the amount by which the interest earned in the Export Financing Scheme exceeds
the sum of the borrowing costs incurred and OeKBs fixed margin, and ii) the net gain or loss from the measure-
ment of the derivatives and financial liabilities in the Export Financing Scheme. In accordance with these rules,
the provision is used to stabilise the terms of export credits.
The recognition and calculation of income taxes is performed in accordance with IAS 12. Current income tax
assets and liabilities are measured by reference to local tax rates. Deferred taxes are determined by the balance
sheet/liability approach. Under this approach, the carrying amounts of the assets and liabilities in the balance
sheet are compared with the respective tax base for the particular Group company. Any temporary differences
between the two sets of valuations lead to the recognition of deferred tax assets or liabilities.
Composition of net gains and losses on financial instruments
Net gains and losses on financial instruments are affected by fair value changes recognised through profit
or loss, by impairment losses, reversal of impairment through profit or loss, exchange rate movements and
derecognition. For financial assets designated on initial recognition as at fair value through profit or loss,
and thus measured as such, interest and dividend income is recorded within net interest income.
Revenue recognition
Income and expenses are recognised as they accrue. Interest income is recognised on an accrual basis using
the effective interest method. Dividend income is recognised at the time of the decision to pay the dividend.
(12) Current and deferred taxes
(13) Consolidated income statement
(11) Other provisions
63
Annual Report 2012
Segmental information
In the segmental analysis presented below, the activities of the OeKB Group are divided into business segments.
The delineation of these three segments Export Services, Capital Market Services and Other Services is
based on the internal control structure and the internal financial reporting to the Executive Board as the chief
operating decision-making body. The financial information for these segments is regularly reviewed to allocate
resources to the segments and judge their performance.
The Export Services segment encompasses the management of guarantees provided by the Republic of Austria
through OeKB as the governments official agent under the Export Guarantees Act (in German: Ausfuhrfrde-
rungsgesetz); OeKBs Export Financing Scheme; and the shareholding in sterreichischer Exportfonds GmbH.
The Capital Market Services segment comprises all services provided by Oesterreichische Kontrollbank AG
relating to the capital market, clearing and settlement of on-exchange and off-exchange securities transactions,
the CentralSecuritiesDepository.Austria, and clearing services for the energy market.
The Other Services segment consists of OeKBs information services, its own-account investment portfolio
and investments, the activities of the OeKB Group in private sector credit insurance, and Oesterreichische
Entwicklungsbank AG.
Interest and similar income 603,465 20,360 623,825
Interest and similar expense (526,972) (679) (527,651)
Share of results of equity-accounted investees 2 9,328 9,330
Impairment losses on loans and advances
and other credit risk provisions (141) (141)
Net fee and commission income 20,775 27,594 1,242 49,611
Fee and commission income 23,552 29,166 4,412 57,130
Fee and commission expense (2,777) (1,572) (3,170) (7,519)
Administrative expenses (37,040) (25,447) (19,917) (82,404)
Net other operating (expense)/income (869) 1,518 5,579 6,228
Net gain or loss on financial instruments (20) 27,821 27,801
Income tax and other taxes (14,827) (867) (8,185) (23,879)
Attributable to non-controlling interests (287) (287)
Segment assets 31,444,622 13,783 1,309,529 32,767,934
Segment liabilities 31,663,545 35,595 406,829 32,105,969
EUR thousand Export Services Capital Market
Services
Other
Services
Total
Profit before tax 59,339 3,667 43,593 106,599
Profit for the year 44,512 2,800 35,408 82,720
Net interest income 76,493 19,681 96,174
Results by business segment in 2012
Operating profit 59,359 3,667 15,772 78,798
Profit for the year attributable to
shareholders of the parent 44,225 2,800 35,408 82,433
64
Annual Report 2012
Segment business performance in 2012
The following factors should be noted:
I The growth of Oesterreichische Entwicklungsbank (the development bank) contributed to an increase in
net interest income in the Other Services segment (at the expense of the Export Services segment), but also
led to a corresponding rise in the segments administrative expenses.
I The share of results of equity-accounted investees represented a small increase in the valuation of
CCP.Austria (in the Capital Market Services segment) and an outstanding result in private credit insurance
(Other Services segment).
I The significant gain on financial instruments in Other Services was attributable both to realised gains in
connection with bond redemptions and to the fair value measurement of the Groups own investment
portfolio. The gain on financial instruments also included the impairment charge on the ownership interest
in Budapest Stock Exchange Ltd.
I The income tax expenses for the individual segments are based on profit before tax, adjusted for tax base
reconciliation items, such as tax-exempt income from investees. Details of the reconciliation items are
given in note 20.
Interest and similar income 753,899 20,326 774,225
Interest and similar expense (678,833) (844) (679,677)
Share of results of equity-accounted investees (54) 7,198 7,144
Impairment losses on loans and advances
and other credit risk provisions (36) (36)
Net fee and commission income 20,320 26,997 2,759 50,076
Fee and commission income 23,395 28,817 4,813 57,025
Fee and commission expense (3,075) (1,820) (2,054) (6,949)
Administrative expenses (37,362) (24,147) (18,355) (79,864)
Net other operating (expense)/income (748) 1,546 5,767 6,565
Net gain or loss on financial instruments (38) (13,333) (13,371)
Income tax and other taxes (14,455) (1,069) 815 (14,709)
Attributable to non-controlling interests (186) (186)
Segment assets 36,467,801 11,879 1,498,535 37,978,215
Segment liabilities 36,611,254 33,119 734,437 37,378,810
EUR thousand Export Services Capital Market
Services
Other
Services
Total
Profit before tax 57,238 4,342 3,482 65,062
Profit for the year 42,783 3,273 4,297 50,353
Net interest income 75,066 19,482 94,548
Results by business segment in 2011
Operating profit 57,276 4,342 16,815 78,433
Profit for the year attributable to
shareholders of the parent 42,597 3,273 4,297 50,167
65
Annual Report 2012
(14) Net interest income and share of results of equity-accounted investees
Notes to the consolidated income statement of the OeKB Group
Transactions offset between segments represent services rendered. Services by Oesterreichische Kontrollbank
AG to subsidiaries are provided at cost. No reconciliation of the amounts for the reportable segments to the
amounts recorded in the consolidated balance sheet and income statement is necessary, as the consolidation
items are assigned directly to the segments.
The segment information is, generally speaking, based on the same accounting methods as the consolidated
As the regional focus of the OeKB Groups activities lies in Austria, a geographic segmentation is not considered
meaningful and is omitted.
Total
2012
Amortised
cost
2011
Fair value
option 2011
Total
2011
EUR thousand Amortised
cost
2012
Fair value
option 2012
Loans and advances and money market instruments 602,284 602,284 747,098 747,098
Fixed income securities 14,501 14,501 20,240 20,240
Equity shares and other variable income securities 5,452 5,452 5,216 5,216
Investments in unconsolidated subsidiaries
and other companies 1,588 1,588 1,671 1,671
Money market instruments and current accounts (26,537) (26,537) (26,134) (26,134)
Debt securities in issue (266,303) (234,811) (501,114) (329,194) (324,349) (653,543)
Interest income 603,872 19,953 623,825 748,769 25,456 774,225
Share of results of equity-accounted investees 9,330 9,330 7,144 7,144
Interest expense (292,840) (234,811) (527,651) (355,328) (324,349) (679,677)
Net interest income 311,032 (214,858) 96,174 393,441 (298,893) 94,548
OeKB EH Beteiligungs- und Management Group, a sub-group of companies which is accounted for under the
equity method as a result of a joint venture agreement, had equity of EUR 125.3 million (2011: EUR 113.4 mil-
lion) and profit for the year in 2012 of EUR 18.3 million (2011: EUR 14.1 million). In the financial year, OeKB
received a dividend of EUR 3,235,992.88 (2011: EUR 2,170,000) from OeKB EH Beteiligungs- und Management
AG.
The sub-group operates primarily in the credit insurance sector. In 2012, with more than 2,374 insurance
policies in force, the sub-group generated total premium income of EUR 78.9 million (2011: EUR 83.5 million).
The claims ratio (claims expenses as a percentage of premium income) was 38.4% in the financial year
(2011: 39.0%).
66
Annual Report 2012
The export guarantee activities represent services provided by OeKB on behalf of the Austrian government;
additional detail is provided in the Segmental information section of this report.
Credit operations 292 656
Securities services 25,164 24,714
Export guarantees 19,499 19,156
Energy clearing 2,326 2,242
Other services 2,330 3,308
Total 49,611 50,076
(15) Impairment losses on loans and advances and other credit risk provisions
(16) Net fee and commission income
In the 2012 financial year an impairment loss of EUR 141,380 was recognised in respect of microcredits
extended by OeKB.
CCP Austria Abwicklungsstelle fr Brsengeschfte GmbH (CCP.A), which is operated as a joint venture with
the Vienna Stock Exchange, had equity of EUR 147,161 at the year-end (2011: EUR 143,254) and registered a
profit for the year of EUR 3,907 (2011: loss of EUR 108,446).
CCP.A acts as the central counterparty for the clearing and risk management of all CCP-eligible securities and
derivatives transactions on the Vienna Stock Exchange and assumes or manages the settlement risk and
default risk.
Staff costs 55,290 53,421
Salaries 36,745 36,291
Social security costs 7,778 8,239
Pension and other employee benefit costs 10,767 8,891
Other administrative expenses 22,579 22,397
Depreciation, amortisation and impairment of property and equipment and intangible assets 4,535 4,046
Total 82,404 79,864
(17) Administrative expenses
67
Annual Report 2012
Other operating income 7,691 7,878
Other operating expenses (1,463) (1,313)
Total 6,228 6,565
(18) Net other operating income
The item other operating income relates largely to service fees received by OeKB from non-fully consolidated
subsidiaries for providing outsourced services on their behalf.
The auditors remuneration is included in other administrative expenses and consisted of fees of EUR 353,000
(2011: EUR 348,000) for the audit of the Groups annual accounts for 2012.
Net gain or loss on financial instruments represents gains and losses from the disposal and valuation of
securities, interests in investments and other companies.
The gains from securities of EUR 31.4 million (2011: EUR 5.6 million) included realised gains of EUR 8.7 million
on disposal of securities (2011: EUR 5.4 million). The losses from securities were EUR 2.3 million (2011:
EUR 14.9 million).
Foreign exchange differences and the fair-valued debt securities in issue and derivatives relate primarily to
the Export Financing Scheme and are to be regarded as a single unit from an economic point of view. The strong
fluctuations in both items were driven by exchange rate movements, particularly in the US dollar and Swiss
franc, but largely offset each other as a result of the hedging function of the derivatives.
(19) Net gain or loss on financial instruments
Net gain or loss from measurement at fair value through profit or loss
Securities 29,094 (9,273)
Foreign exchange differences 189,155 (769,914)
Debt securities in issue and derivatives (189,217) 769,897
Net gain or loss on investments in unconsolidated companies (1,231) (4,081)
Total 27,801 (13,371)
Net gain or loss on financial instruments
Subtotal 29,032 (9,290)
68
Annual Report 2012
The actual taxes are calculated on the tax base for the financial year, at the local tax rates applicable to the
individual Group companies. The taxation at the standard Austrian income tax rate is reconciled to the reported
actual taxes as follows.
The change in fair values of financial liabilities resulted exclusively from changes in market interest rates.
The net loss on investments in unconsolidated companies arose from the write-down of the investment in
Budapest Stock Exchange Ltd.
(20) Income tax and other taxes
Current tax (expense) (27,394) (21,986)
Deferred tax benefit 3,515 7,277
Total income tax expense (23,879) (14,709)
Income tax
Tax expense at Austrian standard corporate income tax rate of 25% 26,650 16,266
Tax effect of tax-exempt results of investees (2,730) (2,069)
Tax effect of other tax-exempt income (275) (223)
Tax effect of non-deductible expenses 319 1,032
Adjustment for prior years (2,252) (1,809)
Other tax effects 2,167 1,512
Income tax reconciliation
Profit before tax 106,599 65,062
Total income tax expense 23,879 14,709
The Executive Board will propose to the 67th Annual General Meeting on 29 May 2013 that the profit available
for distribution recorded in the parent company financial statements for the year 2012 in the amount of
EUR 30,283,314.25 be used to pay a dividend of EUR 22.75 per share and a special dividend of EUR 11.35 per
share. The amount of the resulting total proposed dividend is EUR 30,008,000.00. This represents approxima-
tely 23% of the participating ordinary share capital for 2012 of EUR 130,000,000.00. After payment of the
Supervisory Board emoluments, the balance, amounting to EUR 5,068.25, is to be carried forward.
The dividend payment for the 2011 financial year, which was made in May 2012, amounted to EUR 22.75 per
share or a total of EUR 20,020,000.00.
(21) Appropriation of profit
69
Annual Report 2012
This item consists solely of cash and balances with central banks and corresponds to cash and cash equivalents
reported in the cash flow statement.
EUR thousand
31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
Domestic banks 2,481 5,718 22,115,263 25,977,176
Foreign banks 7,216 9,748 2,424,065 2,744,146
Total 9,697 15,466 24,539,328 28,721,322
Notes to the consolidated balance sheet of the OeKB Group
(22) Cash and balances at central banks
(23) Loans and advances to banks
(24) Loans and advances to customers
Repayable on demand
EUR thousand
31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
Public sector 7,060 5,799 461,983 540,464
Other 995,155 831,122 62,392 32,301
Total 1,002,215 836,921 524,375 572,765
Domestic customers
Other maturities
Foreign customers
The analysis by rating category is presented in note 51.
The allowance for impairment losses on loans and advances relates only to loans and advances to customers,
and concerns only credit risks. The item also includes any impairment of accrued interest at the balance sheet
date. No collective impairment loss has been provided. The amount of non-performing loans and advances
before impairment allowances was EUR 0.57 million (2011: EUR 0.26 million). The amount of other credit risk
provisions was nil.
(25) Allowance for impairment losses on loans and advances and other credit risk provisions
70
Annual Report 2012
(26) Other financial instruments
31 Dec. 2012 31 Dec. 2011 EUR thousand
Treasury bills 579,183 538,262
Bonds 579,666 625,127
Of which listed bonds 1,158,549 1,162,889
Equity shares
Investment fund units 311,717 283,876
Of which listed equity shares and other variable income securities 2,091 2,878
Investments in unconsolidated subsidiaries 1,536 1,536
Investments in other unconsolidated companies 18,076 19,308
Equity shares and other variable income securities 311,717 283,876
Bonds and other fixed income securities 1,158,849 1,163,389
Bonds and other fixed income securities as well as equity shares and other variable income securities in the
amount of EUR 1,471 million (2011: EUR 1,447 million) are held at fair value through profit or loss. No reclassi-
fications were made.
At 31 December 2011, bonds and other fixed income securities also included Greek government bonds of a
nominal value of EUR 19.8 million with a fair value of EUR 4.8 million. In 2012, under the Private Sector Involve-
ment (PSI) agreement, these bonds were exchanged for new securities that were subsequently sold by tender.
Beginning in 2010, as part of liquidity management for the Export Financing Scheme, a liquid assets portfolio
has been established that had a market value of EUR 929.3 million at 31 December 2012.
Unconsolidated companies 19,612 20,844
Total other financial instruments 1,490,178 1,468,109
71
Annual Report 2012
(27) Property and equipment and intangible assets
Within the carrying amount of land and buildings used by the Group, the value of the land itself was
EUR 4.4 million (2011: also EUR 4.4 million).
EUR thousand Cost at
1 Jan. 2012
Disposals in
2012
1
Additions in
2012
1
Accumulated
depreciation
and
amortisation
Cost at
31 Dec.
2012
Net book
value
at 31 Dec.
2012
Net book
value
at 31 Dec.
2011
Current-year
depreciation
and
amortisation
2012
Property and equipment 100,630 11,865 (6,523) 105,972 (73,768) 32,204 30,517 (4,133)
Land and buildings 72,566 9,742 (6) 82,302 (55,047) 27,255 20,267 (2,748)
Fixtures, fittings and equipment 22,030 2,123 (483) 23,670 (18,721) 4,949 4,216 (1,385)
Assets under construction 6,034 (6,034) 6,034
Software 3,408 156 3,564 (3,005) 559 805 (402)
Assets under construction 499 499 499
Total 104,038 12,520 (6,523) 110,035 (76,773) 33,262 31,322 (4,535)
Intangible assets 3,408 655 4,063 (3,005) 1,058 805 (402)
EUR thousand Cost at
1 Jan. 2011
Disposals in
2011
1
Additions in
2011
1
Accumulated
depreciation
and
amortisation
Cost at
31 Dec.
2011
Net book
value
at 31 Dec.
2011
Net book
value
at 31 Dec.
2010
Current-year
depreciation
and
amortisation
2012
Property and equipment 95,874 5,761 (1,005) 100,630 (70,113) 30,517 28,373 (3,600)
Land and buildings 71,902 664 72,566 (52,299) 20,267 21,719 (2,116)
Fixtures, fittings and equipment 22,227 801 (998) 22,030 (17,814) 4,216 4,909 (1,484)
Assets under construction 1,745 4,296 (7) 6,034 6,034 1,745
Software 3,300 261 (153) 3,408 (2,603) 805 989 (446)
Assets under construction 120 (120) 120
Total 99,294 6,022 (1,278) 104,038 (72,716) 31,322 29,482 (4,046)
Intangible assets 3,420 261 (273) 3,408 (2,603) 805 1,109 (446)
1
Including reclassifications.
1
Including reclassifications.
72
Annual Report 2012
(28) Companies wholly or partly owned by OeKB AG
Oesterreichische Entwicklungsbank AG, Vienna CI x 100.00 31 Dec. 2012 7,408 902
sterreichischer Exportfonds GmbH, Vienna CI x 70.00 31 Dec. 2012 10,554 465
OeKB EH Beteiligungs- und Management AG, Vienna OC x 51.00 31 Dec. 2012 97,533 14,162
OeKB Versicherung Aktiengesellschaft, Vienna OC x 51.00 31 Dec. 2012 37,856 2,607
PRISMA Kreditversicherungs-Aktiengesellschaft, Vienna OC x 51.00 31 Dec. 2012 52,639 13,996
PRISMA Risikoservice GmbH, Vienna OC x 51.00 31 Dec. 2012 12,525 2,956
PRISMA Risk Services d.o.o., Belgrade OC x 51.00 31 Dec. 2012 471 17
CCP Austria Abwicklungsstelle fr Brsengeschfte GmbH, Vienna OC x 50.00 31 Dec. 2012 147 4
OeKB Business Services GmbH, Vienna OC x 100.00 31 Dec. 2012 2,247 52
OeKB Zentraleuropa Holding GmbH, Vienna OC x 100.00 31 Dec. 2012 4,516 28
AGCS Gas Clearing and Settlement AG, Vienna OC x 20.00 31 Dec. 2011 3,214 183
APCS Power Clearing and Settlement AG, Vienna OC x 17.00 31 Dec. 2011 2,494 287
CISMO Clearing Integrated Services and Market Operations GmbH, Vienna OC x 18.4999 31 Dec. 2011 3,329 2,529
ECRA Emission Certificate Registry Austria GmbH, Vienna OC x 12.50 31 Dec. 2011 286 4
Einlagensicherung der Banken und Bankiers Gesellschaft m.b.H., Vienna OC x 0.10 31 Dec. 2011 77 0
EXAA Abwicklungsstelle fr Energieprodukte AG, Vienna OC x 8.06 31 Dec. 2011 2,424 739
Garage Am Hof Gesellschaft m.b.H., Vienna OC x 2.00 31 Dec. 2011 4,316 1,129
OeMAG Abwicklungsstelle fr kostrom AG, Vienna OC x 12.60 31 Dec. 2011 5,470 424
CEESEG Aktiengesellschaft (former Wiener Brse AG), Vienna OC x 6.6046 31 Dec. 2011 310,024 12,890
Budapest Stock Exchange Ltd., Budapest OC x 18.35 31 Dec. 2011 17,346 3,575
Link-up Capital Markets S.L., Spain OC x 5.12 31 Dec. 2011 6,258 (2,355)
Banking Act
category
1
Directly
held
Indirectly
held
Type of
investment
in %
Share-
holding
Financial information
Reporting
date of latest
annual
accounts
Equity as
defined in
sec. 224(3)
UGB
2
, in EUR
thousand
Profit for
the year,
EUR
thousand
Investments in other unconsolidated companies, held at amortised cost
Unconsolidated subsidiaries, held at amortised cost
Equity-accounted investees (joint ventures)
Fully consolidated companies
Company name and registered office
Credit
Institution/
Other
Company
1
Other Company (OC) refers to companies that are neither Credit Institutions nor Financial Institutions by the definitions of the Austrian Banking Act.
2
UGB refers to the Austrian Commercial Code.
73
Annual Report 2012
(29) Other assets
EUR thousand 31 Dec. 2012 31 Dec. 2011
Sundry assets 16,510 15,693
Positive fair values of derivative contracts 4,865,489 5,567,303
Prepayments and accrued income 31,173 46,233
Total 4,913,172 5,629,229
An analysis of the derivative positions by remaining term to maturity is set out in note 46.
(30) Deposits from banks
EUR thousand
31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
Domestic banks 65,150 474,496 1,062,276 16,150
Foreign banks 99,565 83,128 465,690 384,047
Total 164,715 557,624 1,527,966 400,197
Repayable on demand Other deposits
EUR thousand
31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
Public sector 531,600 492,155 1,528 2,201
Other 93,142 73,960 47,987 32,667
Total 624,742 566,115 49,515 34,868
Domestic customers
(31) Deposits from customers
Foreign customers
74
Annual Report 2012
(32) Debt securities in issue
Debt securities in issue included EUR 17,760.9 million (2011: EUR 20,519.7 million) of liabilities at fair
value through profit or loss, for which the amount repayable on maturity was EUR 15,187.3 million (2011:
EUR 17,443.2 million). The redemption amount of debt securities in issue maturing in 2013 is EUR 10,204.0
million (2012: EUR 14,104.5 million).
(33) Provisions
Employee benefit provisions 111,886 (4,441) 10,009 117,454
Other provisions 556,988 (8,258) 193,733 742,463
Total 668,874 (12,699) 203,742 859,917
EUR thousand 1 January 2012 Amounts used
and release
Additions 31 December
2012
Movement in provisions in 2012
Included in employee benefit provisions are provisions for vacation pay and similar obligations in the amount
of EUR 4.5 million (2011: EUR 4.3 million). Movements in provisions for long-term employee benefits were
as follows:
EUR thousand
31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
Bonds issued 20,988,119 23,054,120 20,988,119 23,054,120
Other debt securities in issue 6,293,490 10,296,272
Total 27,281,609 33,350,392 20,988,119 23,054,120
Debt securities in issue Of which listed
75
Annual Report 2012
Present value of defined benefit obligation (DBO), representing
the total long-term employee benefit provisions at 1 January 84,016 23,500 107,516 104,395
Service cost 808 721 1,529 1,189
Interest cost 3,577 1,062 4,639 3,776
Benefits paid 3,558 652 4,210 4,291
Actuarial gain or loss 3,208 (128) 3,080 2,447
DBO at 31 December 88,051 24,503 112,554 107,516
EUR thousand Pension Termination
benefits
Total 2012 Total 2011
Long-term employee benefit provisions at 31 December 88,051 24,503 112,554 107,516
Movement in non-current employee benefit provisions
The pension provisions relate to obligations under direct pension commitments or under single-employee
agreements. In the prior years, the pension obligations for a portion of the staff were transferred to a pension
fund under a defined contribution plan. In connection with this, contributions in the amount of EUR 0.8 million
(2011: EUR 0.7 million) were paid to the pension fund in 2012. The pension provisions include entitlements
of the other employees, and of former employees who were already receiving a pension before the time of the
transfer, as well as disability pension obligations in respect of all present employees.
The full change in non-current employee benefit provisions is recorded within staff costs. Staff costs also
included the contributions of EUR 0.1 million to the termination benefit fund (2011: EUR 0.1 million).
The item other provisions at 31 December 2012 included an interest rate stabilisation provision of EUR 733.0
million (2011: EUR 547.2 million) made in order to stabilise the interest rates for the Export Financing Scheme.
Information on the measurement of this provision is provided in note 11. In the year under review, an addition
of EUR 127.1 million to the interest rate stabilisation provision was made from interest income and an amount
of EUR 58.7 million was used from valuation results.
Pension provision 84,016 81,368 79,027 75,648
Termination benefit provision 23,500 23,027 21,604 20,999
EUR thousand 2011 2010 2009 2008
Long-term employee benefit provisions 107,516 104,395 100,631 96,647
Historical information on DBO
76
Annual Report 2012
Negative fair values of derivative contracts 1,465,756 1,711,009
Accruals and deferred income 32,972 36,117
Sundry liabilities 73,751 36,336
Total 1,572,479 1,783,462
31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
Deferred tax assets Deferred tax liabilities EUR thousand
Securities 6,604 5,228 19,671 14,605
Employee benefit provisions 11,590 10,735
Other provisions 49,256 42,899
Total 67,450 58,862 19,671 14,605
Deferred tax assets and liabilities
Net deferred taxes 47,779 44,257
(35) Other liabilities
Accruals and deferred income included deferrals of up-front payments received for services in connection with
the export guarantee business, and deferrals related to the issue of debt securities by the Group.
The share capital of EUR 130,000,000 is divided into 880,000 no-par-value shares. These registered ordinary
shares with restricted transferability are represented by provisional share certificates made out in the name of
each individual shareholder.
OeKB AG is the parent institution of the OeKB banking group for the purposes of section 30 Austrian Banking
Act. The regulatory capital resources of the OeKB Group as determined under the Banking Act showed the
following composition at 31 December:
(36) Capital and capital management
(34) Tax assets and tax liabilities
Tax assets and liabilities respectively include deferred tax assets and deferred tax liabilities arising from
temporary differences between the IFRS carrying amounts and the corresponding tax base in Group
companies. No deferred taxes were recognised for any interests in companies.
Deferred taxes arose on the following items:
77
Annual Report 2012
EUR thousand
Risk-weighted assets (based on Standardised approach to credit risk) 349,187 299,486
Trading book
Regulatory capital requirement
Banking book
1
27,935 23,959
Foreign exchange risk 7,859 7,133
Operational risk (Basic Indicator approach) 24,011 24,089
1
8% of total risk-weighted assets.
2012 2011
The resulting consolidated capital adequacy ratio (regulatory capital resources as a percentage of total risk-
weighted assets) at the end of the financial year was 149.3%, compared to 163.8% at the end of 2011. The conso-
lidated Tier 1 capital ratio was 113.8%, compared to 122.8% one year earlier. The high excess cover was reflected
in a cover ratio (capital resources as a percentage of the capital requirement) of 871.5% (2011: 888.8%).
Section 3 Austrian Banking Act exempts OeKB AG in respect of transactions related to export promotion acti-
vities under the Export Guarantees Act and the Export Financing Guarantees Act from the requirements on
solvency (under sections 22 to 22q Austrian Banking Act), on liquidity, on open foreign currency positions and
on large-scale investments (under sections 25 to 27 Austrian Banking Act). The banking group as defined under
section 30 Austrian Banking Act, unlike the IFRS basis of consolidation, does not include the investments in
insurance companies. The strategic aim of capital management in the OeKB Group is to ensure a sustained
stable capital base. There were no material changes in capital management. At all times during the reporting
period, the Group satisfied the capital requirements of the national supervisor.
The regulatory capital requirement for credit risk is determined in accordance with the provisions of section 22a
Austrian Banking Act (Standardised approach to credit risk). The capital required to be held for operational risk
is determined by the Basic Indicator approach under section 22j of the Act. The banking group does not hold
a trading book. At Group level, the risks are aggregated in accordance with the concept of economic capital.
Through the analysis of risk-bearing capacity, the economic capital required is compared with the economic
capital available, and both measures are monitored.
Paid-up share capital 130,000 130,000
Reserves (including goodwill or gains on acquisition) 273,528 243,675
Non-controlling interests 3,026 3,026
Intangible assets (1,058) (805)
50% deductions under section 23(13)4a Banking Act (investments in insurance companies) (8,049) (8,049)
Tier 2 capital (reserve for general banking risks under section 57 Banking Act) 131,815 130,662
50% deductions under section 23(13)4a Banking Act (investments in insurance companies) (8,050) (8,050)
Surplus regulatory capital 461,407 435,278
Total regulatory capital resources 521,212 490,459
Tier 1 capital 397,447 367,847
Total regulatory capital requirement 59,805 55,181
Total risk-weighted assets 349,187 299,486
Regulatory capital requirement under section 22 Austrian Banking Act
Consolidated regulatory capital resources under section 24 Austrian Banking Act
78
Annual Report 2012
The cash flow statement shows the cash position and cash flows of the OeKB Group. The cash position
recorded, in the narrow sense, consists of cash and balances with central banks.
For credit institutions, the cash flow statement has very limited relevance. The cash flow statement is neither
a substitute for liquidity planning, nor is it used in managing liquidity risks.
Other information and risk report
(38) Analysis of remaining maturities
(37) Information regarding the cash flow statement
EUR thousand
Loans and advances to banks 9,697 3,875,754 6,623,115 10,212,593 3,827,866 24,549,025
Loans and advances to customers 1,525 382,647 627,878 241,961 272,579 1,526,590
Securities at fair value through profit or loss 311,717 24,992 201,012 496,916 435,929 1,470,566
Deposits from banks 164,715 672,835 12,000 824,131 19,000 1,692,681
Deposits from customers 649,991 24,266 674,257
Debt securities in issue 3,924,549 5,419,880 14,628,690 3,308,490 27,281,609
Repayable
on demand
Not more
than
3 months
Over 3 months
but not more
than 1 year
Over 1 year
but not more
than 5 years
Over
5 years
Total
Residual maturities at 31 December 2012
Total 322,939 4,283,393 7,452,005 10,951,470 4,536,374 27,546,181
Total 814,706 4,597,384 5,431,880 15,452,821 3,351,756 29,648,547
EUR thousand
Loans and advances to banks 15,466 3,382,231 8,702,919 12,127,297 4,508,875 28,736,788
Loans and advances to customers 4,480 493,305 493,480 105,684 312,737 1,409,686
Securities at fair value through profit or loss 283,876 50,478 54,284 559,326 499,301 1,447,265
Deposits from banks 557,624 377,422 10,000 2,775 10,000 957,821
Debt securities in issue 8,936,703 5,508,337 14,413,564 4,491,788 33,350,392
Repayable
on demand
Not more
than
3 months
Over 3 months
but not more
than 1 year
Over 1 year
but not more
than 5 years
Over
5 years
Total
Residual maturities at 31 December 2011
Total 303,822 3,926,014 9,250,683 12,792,307 5,320,913 31,593,739
Total 1,135,499 9,314,125 5,518,337 14,416,339 4,524,896 34,909,196
79
Annual Report 2012
The balance sheet contains no subordinated assets.
(39) Loans and advances to and deposits from joint ventures, unconsolidated subsidiaries and other investees
Deposits from customers
Joint ventures and unconsolidated subsidiaries 53,370 38,027
Unconsolidated other investees 12,469 9,457
Deposits
(40) Subordinated assets
(41) Assets pledged as collateral
The remaining maturity is the period from the balance sheet date to the contractual maturity date of the asset
or liability; in the case of instalments, the remaining maturity is determined separately for each instalment.
Accrued and deferred interest is assigned to the maturity class of Not more than 3 months.
(42) Contingent liabilities and commitments
The off-balance sheet contingent liabilities of EUR 87.7 million (2011: EUR 36.3 million) related to guarantees
given by Oesterreichische Entwicklungsbank AG. At the balance sheet date the OeKB Group had total undrawn
credit commitments of EUR 3,224.6 million (2011: EUR 3,847.9 million).
EUR million
With OeNB for tender 5,662.1 6,398.9
For trading on futures (EUREX) 26.2 30.8
For energy trading (ECC) 6.8
For stock exchange trading in Vienna (CCPA) 0.0 0.0
For EUREX Repo platform 510.1
2012 2011
Collateral pledged 667.0 444.0
Collateral received 445.0 371.0
Securities pledged as collateral (market value)
Collateral for credit risks of derivatives transactions
80
Annual Report 2012
As part of the deposit insurance system operated by the Vienna-based Banken and Bankiers GmbH, in
accordance with section 93 Austrian Banking Act, OeKB and Exportfonds are required to guarantee a propor-
tionate amount of deposits.
Obligations arising under leases (all of which are operating leases) and rental agreements for 2013 amount to
EUR 1.6 million (at the end of the prior year the obligations for 2012 were EUR 1.5 million). The corresponding
obligations for the five-year period from 2013 to 2017 were EUR 9.2 million (at the end of the prior year the
obligations for the five-year period from 2012 to 2016 were EUR 9.2 million). Rent paid for 2012 was EUR 1.5
million (2011: EUR 1.4 million).
Loans and advances to banks 13,266 14,631
Loans and advances to customers 990 990
Other assets 50,857 11,205
Deposits from banks 990 990
Deposits from customers 64,123 25,836
Fiduciary liabilities 65,113 26,826
Fiduciary positions recognised in the balance sheet
Fiduciary assets 65,113 26,826
Off-balance sheet fiduciary transactions amounted to EUR 16.3 million (2011: EUR 16.6 million). This item
consists largely of development-aid credits processed on behalf of the Republic of Austria.
(43) Sundry off-balance sheet obligations
(44) Fiduciary assets and liabilities
(45) Supplementary information on assets and liabilities under the Austrian Banking Act
EUR thousand
Assets Liabilities Assets Liabilities
Denominated in foreign currency 1,654,239 18,887,301 2,192,347 20,974,661
Issued or originated outside Austria 3,156,724 25,287,765 3,606,219 30,766,514
31 December 2012 31 December 2011
81
Annual Report 2012
Interest rate swaps (OTC) 3,941,404 13,621,631 1,073,330 18,636,365 533,590 405,035
Currency swaps (OTC) 6,173,130 7,606,242 529,415 14,308,787 4,331,636 1,060,721
Foreign exchange transactions 145,369 145,369 263
Notional amount at 31 Dec. 2012 by remaining maturity Positive
fair values
Negative
fair values Not more
than 1 year
Over 1 year but
not more than
5 years
Over
5 years
Total
2012
EUR thousand
Total 10,259,903 21,227,874 1,602,745 33,090,522 4,865,489 1,465,756
Currency derivatives
Interest rate derivatives
(46) Derivative financial instruments
(47) Fair value of financial instruments
The table below presents the carrying amounts and fair values of financial assets and liabilities, analysed
by category.
Fair values are determined as described in note 6. The market values of loans and advances to banks and
customers and of deposits from banks and customers are based on inputs that in the case of assets and
of liabilities are directly or indirectly observable. The same is true of the market values of derivatives reported
in other assets and other liabilities (level 2).
The determination of the market values of other financial instruments is based on prices quoted on an active
market (level 1). No reclassifications occurred in the financial year or prior year.
Interest rate swaps (OTC) 4,800,361 14,178,044 2,873,212 21,851,617 622,623 460,439
Currency swaps (OTC) 9,759,521 6,842,742 1,294,812 17,897,075 4,944,680 1,250,571
Foreign exchange transactions
Notional amount at 31 Dec. 2011 by remaining maturity Positive
fair values
Negative
fair values Not more
than 1 year
Over 1 year but
not more than
5 years
Over
5 years
Total
2011
EUR thousand
Total 14,559,881 21,020,786 4,168,024 39,748,691 5,567,303 1,711,009
Currency derivatives
Interest rate derivatives
82
Annual Report 2012
Loans and receivables Total 2012 Financial instruments
at fair value
Other financial
instruments,
at amortised cost
EUR thousand
Cash and balances at central banks 124,266 124,266 124,266 124,266
Loans and advances to banks 24,549,025 25,439,208 24,549,025 25,439,208
Loans and advances to customers 1,526,590 1,553,261 1,526,590 1,553,261
Allowance for impairment losses
on loans and advances (401) (401) (401) (401)
Other financial instruments 19,613 30,743 1,470,566 1,470,566 1,490,179 1,501,309
Other assets 47,683 47,683 4,865,489 4,865,489 4,913,172 4,913,172
Deposits from banks 1,692,681 1,709,884 1,692,681 1,709,884
Deposits from customers 674,257 674,257 674,257 674,257
Debt securities in issue 9,520,739 10,367,779 17,760,870 17,760,870 27,281,609 28,128,649
Other liabilities 106,724 106,724 1,465,756 1,465,756 1,572,479 1,572,479
Carrying
amount
Fair value 2012
Assets
Liabilities
Fair value Carrying
amount
Fair value Carrying
amount
Fair value Carrying
amount
Fair value
Loans and receivables Total 2011 Financial instruments
at fair value
Other financial
instruments,
at amortised cost
EUR thousand
Cash and balances at central banks 586,152 586,152 586,152 586,152
Loans and advances to banks 28,736,788 29,418,152 28,736,788 29,418,152
Loans and advances to customers 1,409,686 1,427,879 1,409,686 1,427,879
on loans and advances (259) (259) (259) (259)
Other financial instruments 20,844 31,975 1,447,265 1,447,265 1,468,109 1,479,239
Other assets 61,926 61,926 5,567,303 5,567,303 5,629,229 5,629,229
Deposits from banks 957,821 958,019 957,821 958,019
Deposits from customers 600,983 600,983 600,983 600,983
Debt securities in issue 12,830,703 13,700,889 20,519,689 20,519,689 33,350,392 34,220,578
Other liabilities 72,454 72,454 1,711,009 1,711,009 1,783,463 1,783,463
Carrying
amount
Fair value 2011
Assets
Liabilities
Fair value Carrying
amount
Fair value Carrying
amount
Fair value Carrying
amount
Fair value
83
Annual Report 2012
Risk management essentially, the identification, monitoring, assessment, reporting, planning and treatment of
risks consists of important processes designed to ensure the security and profitability of the enterprise in
the interest of customers and owners. Every risk assumed by the OeKB Group must be consistent with the
Executive Boards risk policy and strategy, which aims to assure a sustained stable return on equity through a
conservative approach to all risks, including financial risks and risks arising from business operations in general.
The Internal Capital Adequacy Assessment Process (ICAAP) implemented in the OeKB Group serves to assure
the maintenance of the defined bank-specific level of capital adequacy and, as a measurement and control tool,
forms an integral part of the management process.
The key variable in the measurement and management of risk is economic capital; it is calculated using the con-
cept of Value at Risk (VaR) over a one-year time horizon. In the ICAAP, credit risk, market risk, operational risk
and business risk are taken into account quantitatively, through the calculation of economic capital (business
risk is considered to be the risk that earnings will suffer as a result of changes in the business environment
such as markets, customer behaviour or technology or of inappropriate or inadequately implemented business
strategy). The ICAAP also covers liquidity risk, which is measured and managed primarily by means of the survi-
val period. The survival period is the period for which the OeKB Groups liquidity buffer is sufficient to allow the
Group to operate without restricting its business. The survival period is determined on the basis of cash-flow
and funding projections (using idiosyncratic and systemic stress assumptions) that are compared against the
counterbalancing capacity.
For each risk type, the table below shows the minimum capital required under the Austrian Banking Act and the
corresponding Values at Risk based on the ICAAP:
(48) Risk management
Value at Risk under ICAAP
Risk exposure and capital requirement
EUR thousand Regulatory capital requirement
under section 22 Banking Act
Credit risk 29,173 36,749 27,935 23,959
Commodity and foreign exchange risk 26,941 36,220 7,859 7,133
Other market risk in the banking book 37,326 26,758
Other risks 16,095 17,280
Operational risk 30,552 33,478 24,011 24,089

31 Dec. 2012 31 Dec. 2011 31 Dec. 2012 31 Dec. 2011
In the calculation of risk coverage, the economic capital required is compared with the economic capital
available. This is done in a multi-tier system addressing various risk coverage objectives. The available capital is
allocated to market risk and credit risk in proportion to the respective economic capital required. In key areas,
additional limits are in place at the operations level.
84
Annual Report 2012
Risk assessment is performed at least quarterly. Credit risks that are individually material are measured using
Credit Value at Risk (CVaR); individually material market risks are measured using VaR. Credit and market risks
that are not individually material are assessed by allowing a lump sum for them. The liquidity risk of potentially
higher borrowing costs, and other risks (including business risk), are recognised through flat percentage-based
amounts. The assessment of operational risk employs the Basic Indicator approach, expanded by a distribution
assumption for estimation at a high confidence level. The systems used for this purpose are SAP, QRM, Bloom-
berg and proprietary systems.
Risk management is supported by the system of internal control, which serves to assure compliance with rules,
standards and risk mitigation procedures. Extensive automated IT general controls, as well as reviews performed
particularly by the Internal Audit department, contribute to the effectiveness of this internal control system.
In 2012 the further development of the risk measurement and control processes focused on the limits system
and credit risk management. This included a complete revision of the rating and mapping methodology. Priority
was also given to the preparations for Capital Requirements Directive IV (CRD IV) and the Capital Requirements
Regulation (CRR), as well as changes in the reporting system. These themes are expected to remain paramount
in 2013. As an example of improvements in operational risk management, the product launch process was
restructured and a guideline prepared for it.
Risk management organisation
Against the backdrop of the OeKB Groups major business activities and its specific business and risk structure,
the bank has adopted a clear functional organisation of the risk management process; well-defined roles are
assigned to the following organisational units:
Executive Board: In accordance with the responsibilities prescribed for it in the Austrian Banking Act, the Exe-
cutive Board sets the Groups risk policy and strategy. As part of the Groups enterprise-wide risk management,
the Executive Board, working with the Risk Management Committee, determines the acceptable aggregate
amount of risk (based on the calculated capacity to assume risk), approves risk limits derived from this
aggregate and decides on the procedures for risk monitoring.
Risk Management Committee: The function of the Risk Management Committee is derived from the risk policy
and consists of strategic risk control and risk monitoring. The Risk Management Committee is the primary
recipient of the risk reports, monitors and manages the risk profiles for the individual risk types, and, as
needed, decides actions based on the risk reports. The committee consists of the Executive Board, the Chief
Risk Officer (CRO) and Deputy CRO, the Operational Risk Manager (ORM), Financial Risk Manager (FRM),
internal control system officer and representatives from the Accounting department and business segments.
Chief Risk Officer: The implementation of the measures decided by the Risk Management Committee is over-
seen by the Chief Risk Officer, supported by the Financial Risk Manager, the Operational Risk Manager and the
Chief Information Security Officer (CISO).
Risk Controlling department: The Risk Controlling department is responsible for the measurement and as-
sessment of financial risks, the operating-level financial risk accounting and the implementation and monitoring
of internal controls in respect of financial risk, including the monitoring of internal limits and the actual imple-
mentation of the Internal Capital Adequacy Assessment Process.
85
Annual Report 2012
Operational risk management: The directions on the management of operational risk are implemented in the
Groups business operations by the Organisation, Construction, Environmental Issues and Security department
(known as OBUS), with the exception of information security matters, which are the responsibility of the Chief
Information Security Officer. The activities falling into the areas of operational risk management, of information
security and of the internal control system officer are subject to ongoing coordination.
Asset and Liability Management Committee: The principal responsibilities of the Asset and Liability
Management Committee (ALCO) are to manage the balance sheet structure and market risks and to set lending
rates under the Export Financing Scheme.
Internal Audit: The organisational units involved in the risk management process and the procedures applied
are regularly reviewed by the Internal Audit department.
Supervisory Board: The Supervisory Board has oversight of all risk management arrangements in the OeKB
Group and receives quarterly reports on the Groups risk situation. These risk reports present in detail the
financial risk situation and the economic capital for operational risk. The Audit Committee of the Supervisory
Board also monitors the effectiveness of the system of internal control.
Market risks arise from a potential change in risk factors that may lead to a reduction in the market value of
the financial items. The specific types of market risk distinguished are interest rate risk, foreign exchange risk
and equity price risk. The Groups market risks relate only to banking book positions, as no trading book is
maintained.
Risks are assessed by using the Value-at-Risk concept for estimating maximum potential losses. In addition,
interest rate and exchange rate sensitivity ratios are determined, and the effects of extreme market movements
are calculated through stress tests using two methods. First, the economic capital determined through the
ICAAP is tested under various scenarios (expected shortfall, credit migration, and correlations). Additionally,
for market risks, the impact of several specific scenarios is calculated (for example, historical contingencies
such as Black Monday and September 11, 2001).
The largest amount of economic capital arises in connection with the Groups investment portfolio (see note 26,
Other financial instruments), which had a composition of 17.0% investment funds and 83.0% bonds owned by
the Group. Of these bonds, EUR 929.3 million served as a liquidity buffer in the Export Financing Scheme; the
buffers interest rate risk is hedged by interest rate swaps. The Value at Risk of the rest of the investment port-
folio is determined monthly. At 31 December 2012 the VaR for general and specific interest rate risk amounted
to EUR 39.6 million for a holding period of one year at a 99% confidence level. The interest rate risk is also
monitored by using stress scenarios. Thus, it was calculated that a positive interest rate shock of 200 basis
points would have led to a change of EUR 22.5 million in the market value of the banking book. In the risk
management of the investment portfolio, the in-house portfolio management is supported by an external overlay
manager.
Exchange rate risks exist above all in connection with raising long- and short-term funds for the Export Financing
Scheme. These risks are secured by an exchange rate guarantee of the Republic of Austria under the Export
Financing Guarantees Act. An interest rate stabilisation provision is maintained against interest rate risks under
the Export Financing Scheme.
(49) Market risk
86
Annual Report 2012
The following table shows the interest rate sensitivity gap analysis for the OeKB Group (including the Export
Financing Scheme).
EUR thousand
Cash and balances at central banks 124,266 124,266
Loans and advances to banks 12,962,931 608,198 1,225,183 5,927,230 3,825,483 24,549,025
Loans and advances to customers 1,269,805 248,786 454 3,166 4,379 1,526,590
Bonds and other fixed income securities 199,121 181,350 9,750 286,379 482,249 1,158,849
Deposits from banks (1,685,700) (5,350) (1,632) (1,692,681)
Deposits from customers (647,630) (202) (517) (6,766) (19,141) (674,257)
Debt securities in issue (7,470,131) (1,450,480) (3,211,088) (11,065,256) (4,084,654) (27,281,609)
Effect of derivative contracts (903,298) (710,902) 423,469 1,866,690 (675,959)
Not more
than
3 months
Over 3 but
not more than
6 months
Over 6 months
but not more
than 1 year
Over 1 year
but not more
than 5 years
Over
5 years
Total
carrying
amount
Interest rate sensitivity gap analysis at 31 December 2012
Subtotal 14,556,123 1,038,334 1,235,388 6,216,775 4,312,110 27,358,730
Subtotal (9,803,461) (1,456,032) (3,211,605) (11,073,654) (4,103,795) (29,648,547)
Total 3,849,364 (1,128,601) (1,552,748) (2,990,189) (467,644) (2,289,817)
EUR thousand
Loans and advances to banks 12,153,383 1,638,893 2,705,144 8,201,042 4,038,327 28,736,788
Loans and advances to customers 1,377,290 26,759 111 215 5,311 1,409,686
Bonds and other fixed income securities 189,067 20,500 11,092 485,730 457,000 1,163,389
Deposits from banks (937,978) (12,068) (5,000) (2,775) (957,821)
Deposits from customers (575,270) (208) (541) (7,271) (17,693) (600,983)
Debt securities in issue (10,537,336) (2,008,662) (3,441,231) (13,075,349) (4,287,814) (33,350,392)
Effect of derivative contracts (1,106,332) (2,521,559) 546,604 4,028,687 (947,401)
Not more
than
3 months
Over 3 but
not more than
6 months
Over 6 months
but not more
than 1 year
Over 1 year
but not more
than 5 years
Over
5 years
Total
carrying
amount
Interest rate sensitivity gap analysis at 31 December 2011
Subtotal 14,305,892 1,686,152 2,716,347 8,686,987 4,500,638 31,896,015
Subtotal (12,050,584) (2,020,938) (3,446,772) (13,085,395) (4,305,507) (34,909,196)
Total 1,148,977 (2,856,346) (183,820) (369,721) (752,270) (3,013,180)
87
Annual Report 2012
Hedging
To assist in controlling market risks, the Group employs derivative financial instruments. The derivatives invol-
ved are interest rate swaps and cross currency interest rate swaps, which are traded over the counter (OTC)
and used largely as hedging instruments for debt securities issued by the OeKB Group. Instead of applying
hedge accounting under IAS 39, these hedged financial liabilities are designated at fair value through profit or
loss in order to avoid accounting mismatches. The changes in value of the derivative and of the respective
hedged liability are thus recorded in the income statement. Credit exposures arising from fluctuations in value
are secured with collateral. In 2012 OeKB also prepared for the introduction expected to come with the
implementation of Basel III of a central counterparty for derivatives transactions.
Liquidity risk is the risk of not being able to meet present or future payment obligations fully as they fall due. In
the wider sense, liquidity risk also includes funding liquidity risk (the risk that funding can be obtained only on
unfavourable market terms), and market liquidity risk (the risk that assets can be sold only at a discount). While
in the case of potential increases in borrowing costs, the corresponding economic capital is determined and
they are thus directly taken into account in the calculation of risk coverage, available liquidity is controlled
differently, using a survival period analysis.
The goal of the liquidity strategy is to secure sufficient access to required liquidity even in difficult market situa-
tions. OeKBs decades-long excellent standing in international financial markets coupled with the high diversifi-
cation of its funding instruments, markets and maturities and especially the Austrian government guarantee
protecting the lenders, combine to facilitate market access for the Group even when markets are under special
stress. The funding channels available were further expanded in 2012 by creating access to Eurex Repo in Zurich.
The approach to measurement and management of liquidity risk is documented in the liquidity risk management
manual. At the core of risk measurement are cash-flow and funding projections based both on idiosyncratic
and systemic stress assumptions that are set against the counterbalancing capacity, which is represented
primarily by securities eligible for rediscounting by the ECB. Market liquidity risk is taken into account through
corresponding haircuts. The average survival period in 2012 determined by this methodology was about four
months. OeKB defines the survival period as that period for which the current liquidity buffer is sufficient, under
an assumed combination of simultaneous idiosyncratic and systemic stresses, to meet all payment obligations
without having to raise additional capital in the financial markets (although the full faith and credit of the Repu-
blic of Austria supports such borrowing by OeKB). In a stress period the survival period is thus the time available
to take any strategic corrective action necessary. For crisis situations, a liquidity contingency plan is in place.
In addition to monitoring the daily liquidity position, long-term liquidity is assessed based on the gap analysis of
the maturity profile of assets and liabilities.
(50) Liquidity risk
2012 2011 2012 2011 2012 2011 2012 2011
Liquidity gap (454,052) (2,593,777) (3,116,171) (1,234,632) 2,524,007 2,529,704 (1,032,894) (1,227,753)
Liquidity gaps based on long-term asset/liability maturity analysis at 31 December
EUR thousand Not more than
2 years
Over 2 years but
not more than 5 years
Over 5 years but
not more than 10 years
Over 10 years
Credit risk is the risk of unexpected losses as a result of the default or deterioration in credit quality of
counterparties. In view of its business structure, the OeKB Group distinguishes the following types of credit risk:
counterparty risk/default risk, investee risk and concentration risk. The critical measure used for credit risk
is Credit Value at Risk, representing the difference between an unexpected loss at a 99.98% confidence level
and the expected loss associated with the respective default.
(51) Credit risk
88
Annual Report 2012
Over 1 but not
more than
3 months
Over 3 months
but not more
than 1 year
Over 1 but not
more than
5 years
Over 5 years EUR thousand Total Not more
than 1 month
Net book
value
Liabilities at 31 December 2012
Deposits from banks 1,692,681 1,684,847 841,715 22,500 820,632
Debt securities in issue 27,281,609 26,395,146 1,358,117 2,406,198 5,410,081 13,136,095 4,084,654
Undrawn credit commitments and offers 3,081,962 342,958 889,014 999,499 816,302 34,190
Derivatives 1,465,756
Outflows 9,574,870 1,098,663 1,861,915 2,046,486 4,567,807
Inflows 8,488,339 1,071,377 1,764,034 1,960,806 3,692,123
Total 29,648,547 31,806,688 3,187,524 3,317,712 6,409,580 14,773,028 4,118,844
Maturity analysis of liabilities
The tables below show the schedule of future cash outflows and inflows based on the nominal amounts of the
gross transaction, i.e. without taking netting agreements into account. The mapping into time buckets is based
on the contractual maturity structure; liabilities payable on demand are assigned to Not more than 1 month.
Over 1 but not
more than
3 months
Over 3 months
but not more
than 1 year
Over 1 but not
more than
5 years
Over 5 years EUR thousand Total Not more
than 1 month
Net book
value
Liabilities at 31 December 2011
Deposits from banks 957,821 946,399 933,624 10,000 2,775
Debt securities in issue 33,350,392 32,356,119 2,811,749 5,865,703 5,460,100 13,930,753 4,287,814
Undrawn credit commitments and offers 3,881,573 426,635 1,302,397 1,386,861 606,513 159,166
Derivatives 1,711,009
Outflows 9,033,010 785,781 1,738,764 1,201,091 4,311,817 995,558
Inflows 7,754,255 777,196 1,470,571 1,135,903 3,597,728 772,857
Total 34,909,196 37,755,166 4,743,083 7,168,100 6,856,961 14,540,041 4,446,980
89
Annual Report 2012
Rating
category 3
(BBB)
Rating
category 4
(BB)
Rating
category 5
(B)
Total carrying
amount
EUR thousand Rating
category 1
(AAA/AA)
Rating
category 2
(A)
Loans and advances to banks 22,947,179 1,579,665 20,335 5 1,842 24,549,025
Loans and advances to customers 1,466,204 38,665 15,854 5,867 1,526,590
on loans and advances (401) (401)
Other financial instruments 1,173,118 58,060 254,462 2,075 677 1,787 1,490,179
Derivatives 3,955,159 838,671 71,659 4,865,489
Credit portfolio by rating category 2012
Rating
category 6
(CCC and below)
Counterparties are classified into internal credit rating categories on the basis of external ratings from interna-
tionally recognised rating agencies and internal credit ratings. The rating and mapping methodology, at the
heart of which is a 22-point internal master scale, was fully revised in 2012.
The credit exposure of the OeKB Group consists largely of export credits. In keeping with the Groups exacting
lending standards, the approval of these loans and commitments is subject to high loan security requirements
(such as, notably, guarantees of the Republic of Austria). To secure credit risks in connection with derivative
transactions, collateral agreements are concluded with all counterparties, and downgrade trigger provisions are
in place with all counterparties. These trigger clauses permit contracts to be assigned to third parties, or to be
cancelled, upon a pre-defined deterioration in rating. The entire Export Financing Scheme is treated as investee
risk with its own dedicated supply of available economic capital (interest rate stabilisation provision).
The distribution of assets in the banking book (including the investment portfolio) across rating categories
was as shown in the table below. Guaranteed assets are, to the extent of the guarantee, assigned to the rating
category of the guarantor; assets guaranteed by the Republic of Austria are assigned to rating category 1;
no credit derivatives are employed.
Rating
category 3
(BBB)
Rating
category 4
(BB)
Rating
category 5
(B)
Total carrying
amount
EUR thousand Rating
category 1
(AAA/AA)
Rating
category 2
(A)
Loans and advances to banks 27,693,495 1,042,496 139 658 28,736,788
Loans and advances to customers 1,356,023 34,194 11,900 7,570 1,409,686
on loans and advances (259) (259)
Other financial instruments 1,129,550 90,110 217,417 22,704 5 8,323 1,468,109
Derivatives 4,840,005 727,299 5,567,303
Credit portfolio by rating category 2012
Rating
category 6
(CCC and below)
During the financial year, the Group had an average of 398 employees (2011: 397 employees). The number of
employees represents in full-time equivalents.
The following table gives details of the aggregate compensation of the Executive Board and Supervisory Board
members and the termination benefits and pension expenses for Executive Board members, key management
and other employees (including changes in entitlements and provisions).
(53) Staff count
(54) Boards remuneration and loans
90
Annual Report 2012
The table below analyses the banking book assets by country category; export credits backed by a guarantee
under the Export Financing Act are included under Austria.
As at 31 December 2012 the highest exposures within the region EU (excluding Austria) were with the United
Kingdom (EUR 1,104.0 million), France (EUR 477.2 million) and Germany (EUR 450.3 million). The highest
exposures under Other countries were with the United States (EUR 377.2 million), Australia (EUR 21.0
million) and Norway (EUR 10.3 million).
The Groups business operations are subject not only to the regulatory requirements but also to the volume
limits set by the Executive Board at the transaction type, portfolio and counterparty level.
Austria 29,434,021 33,814,731
EU (excluding Austria) 2,684,864 3,411,007
Other countries 436,261 542,040
Credit portfolio by country category
(52) Operational risk
Operational risk is the risk of losses resulting from inadequacy or failure of internal processes, people or
systems, or from external events, including legal risks.
Standards, rules and processes are derived from the risk policy and documented in the operational risk manual.
This also includes emergency management manuals and emergency plans, as well as crisis scenarios, all of
which are annually reviewed. The maintenance and evaluation of the loss database on an ongoing basis helps to
assure a permanent process of optimisation of operational risks. In view of the high importance of information
security, the Group has a dedicated information security officer.
Risk mitigation is also promoted by an effective system of internal control.
91
Annual Report 2012
Aggregate remuneration
Current members of the Executive Board Not disclosed Not disclosed
Former members of the Executive Board 138 137
Members of the Supervisory Board 270 268
Pension and termination benefit expenses for
Executive Board 2,248 2,525
Key management 1,175 1,313
Other employees 6,685 4,427
2012 2011
Boards remuneration and loans
EUR thousand
As permitted under section 266(7)b Austrian Commercial Code, the aggregate remuneration of current
Executive Board members is not stated. At 31 December 2012 there were no outstanding loans to members
of the Executive Board or Supervisory Board. There were also no guarantees by OeKB for these individuals.
There are no management share option plans for the Executive Board or for key managers.
Based on the corporate business strategy, and in harmony with the Groups risk policy, the Executive Board of
OeKB sets the compensation policy for OeKB. The compensation policy is reviewed annually.
The Supervisory Board of OeKB formed a Compensation Committee. This Board committee will review the
compensation policy.
In implementing the compensation policy, the principle of proportionality was followed by taking into account
the size of OeKB AG (about 400 employees), the complexity of the business model and the need for a relatively
conservative compensation structure.
The human resources strategy seeks to foster sustainability and quality assurance. A key pillar of the HR
strategy is to offer appropriate compensation, both for employees and management. Compensation is bench-
marked annually against the market. OeKB also takes care to achieve a sound relationship between fixed and
variable pay.
The design of the variable compensation policy ensures that the incentive structure is aligned with the long-
term interests of OeKB. The variable pay achievable represents an appropriate share of total compensation and
is based both on individual performance and on the performance of the company or Group against one-year
and multi-year targets.
The targets are quantitative and measurable and are based on a mix of corporate performance indicators. The
performance targets are weighted such that one-third of the bonus pool is determined by corporate earnings,
one-third by sustained growth in enterprise value and one-third by risk parameters.
For OeKB AG as a whole (all staff, including the Executive Board), the aggregate variable compensation for 2012
amounted to approximately 9% (2011: 9%) of aggregate gross total salaries (including the variable component).
For the Executive Board, the individual variable component payable is capped at an upper limit of 40% of the
individuals total compensation. From the second tier of management (department heads) on down, the upper
limit for the variable component is 20% of individual total compensation.
92
Annual Report 2012
If the variable compensation accrued exceeds 20% of individual total compensation, a deferred-payment
process is applied to promote the regulatory values of sustainability and risk awareness. In this case, 40% of
the variable compensation is paid out conditionally over a period of five years (deferred). Until the actual
disbursement of deferred compensation, the beneficiary has only a non-vested future interest in the deferred
amount. The annual instalment payable from the deferred amount is reassessed every year. The size of the
individual tranches follows the relative movement in Tier 1 capital.
In the event of an unfavourable financial position and low or negative profitability, the Executive Board and/or
Supervisory Board (Compensation Committee) reserve the right to reduce the current variable compensation
and deferred bonus payments. To the extent consistent with the law, this may include the complete cancellation
of the current and deferred variable compensation.
In 2012, a total of EUR 4,691,687.54 (2011: EUR 4,658,597.56) of fixed compensation and EUR 902,996.40
(2011: EUR 853,300.00) of variable compensation was paid to 21 senior managers (the Executive Board,
department heads and compliance officer). The variable pay represented 16.1% (2011: 15.5%) of total compen-
sation.
As permitted under the Data Protection Act, the compensation of the Executive Board, the amount of deferred
compensation and any reductions of deferred compensation are not disclosed separately.
For senior management and for OeKBs employees in general, the fixed salary represents the major share of
total compensation. This leaves scope for a high degree of flexibility regarding the policy for variable compen-
sation, including the possibility of not paying a variable component at all.
In keeping with sound and effective risk management, the low ratio of variable to total compensation helps to
ensure that no staff member has a bonus-related incentive to take risks that exceed the intended corporate risk
appetite or risk tolerance.
At OeKB, guaranteed variable pay is not considered compatible with the principle of performance-based
compensation and is therefore not used.
Comparable policies are in place at Oesterreichische Entwicklungsbank and at Exportfonds.
93
Annual Report 2012
I Members of the Executive Board
Johannes Attems
Rudolf Scholten
I Members of the Supervisory Board
Erich Hampel, Chairman
Walter Rothensteiner,
1st Vice-Chairman
Franz Hochstrasser,
2nd Vice-Chairman
Helmut Bernkopf
Peter Bosek
Michael Glaser (since 22 May 2012)
Dieter Hengl
Friedrich Hondl (until 15 March 2012)
Reinhard Karl (since 22 May 2012)
Michael Mendel (since 22 May 2012)
Herbert Messinger (since 18 December 2012)
Gernot Mittendorfer (until 22 May 2012)
Heimo Penker
Christoph Raninger (until 31 October 2012)
Angelo Rizzuti
Herbert Stepic
Susanne Wendler (until 22 May 2012)
Robert Zadrazil
Franz Zwickl
Staff representatives:
Martin Krull
Erna Scheriau
Alexandra Griebl
Anish Gupta
Christian Leicher
Claudia Richter
Otto Schrodt
Markus Tichy
I Government commissioners
under section 76 Austrian Banking Act
Harald Waiglein, Commissioner (since 1 July 2012)
Thomas Wieser, Commissioner (until 29 Feb. 2012)
Johann Kinast, Deputy Commissioner
The above government commissioners are also
representatives of the Austrian Minister of
Finance under section 6 Export Financing
Guarantees Act.
I Government commissioners
under section 27 of the Articles of Association
(supervision of bond cover pool)
Johannes Ranftl, Commissioner
Edith Wanger, Deputy Commissioner
(55) Board members and officials
As a specialised institution for export services and capital market services, OeKB engages in many transactions
with its shareholders. All these transactions are conducted at arms length.
The following balance sheet items include transactions with related parties of OeKB:
(56) Other related party transactions
94
Annual Report 2012
(57) Date of approval for publication
The date of submission of these financial statements to the Supervisory Board for approval is 20 March 2013.
Oesterreichische
Signed by the Executive Board
Loans and advances to banks 19,494,938 23,062,464
Other financial instruments 73,428 83,634
Deposits from banks 17,782 13,843
Related party transactions with shareholders of OeKB
Related party transactions with unconsolidated subsidiaries
Related party transactions with equity-accounted investees
Related party transactions with other investees
There were no transactions with Executive Board or Supervisory Board members.
95
96
Annual Report 2012
Auditors Report
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of
Oesterreichische
Kontrollbank Aktiengesellschaft,
Vienna,
for the year from 1 January 2012 to 31 December 2012. These consolidated financial
statements comprise the consolidated balance sheet as of 31 December 2012, the con-
solidated income statement, the consolidated cash flow statement and the consolidated
statement of changes in equity for the year ended 31 December 2012 and a summary of
significant accounting policies and other explanatory notes.
Management's Responsibility for the Consolidated Financial Statements and
for the Accounting System
The Companys management is responsible for the group accounting system and for the
preparation and fair presentation of these consolidated financial statements in accor-
dance with International Financial Reporting Standards (IFRSs) as adopted by the EU.
This responsibility includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of the consolidated financial statements
that are free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditors Responsibility and Description of Type and Scope of the Statutory Audit
Our responsibility is to express an opinion on these consolidated financial statements
based on our audit. We conducted our audit in accordance with laws and regulations
applicable in Austria and in accordance with International Standards on Auditing, issued
by the International Auditing and Assurance Standards Board (IAASB) of the International
Federation of Accountants (IFAC). Those standards require that we comply with profes-
sional guidelines and that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on
the auditor's judgment, including the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Groups preparation
and fair presentation of the consolidated financial statements in order to design audit pro-
cedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Groups internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation
of the consolidated financial statements.
97
Annual Report 2012
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
Our audit did not give rise to any objections. In our opinion, which is based on the results
of our audit, the consolidated financial statements comply with legal requirements and
give a true and fair view of the financial position of the Group as of 31 December 2012
and of its financial performance and its cash flows for the year from 1 January to
31 December 2012 in accordance with International Financial Reporting Standards (IFRSs)
as adopted by the EU.
Report on the Management Report for the Group
Pursuant to statutory provisions, the management report for the Group is to be audited as
to whether it is consistent with the consolidated financial statements and as to whether
the other disclosures are not misleading with respect to the Companys position. The
auditors report also has to contain a statement as to whether the management report for
the Group is consistent with the consolidated financial statements.
In our opinion, the management report for the Group is consistent with the consolidated
KPMG Austria AG
Wirtschaftsprfungs- und Steuerberatungsgesellschaft
Bernhard Gruber ppa Wolfgang Hller
Austrian Chartered Accountants
This report is a translation of the original report in German, which is solely valid. The finan-
cial statements together with our auditor's opinion may only be published if the financial
statements and the management report are identical with the audited version attached to
this report. Section 281 paragraph 2 UGB (Austrian Commercial Code) applies.
Publication information
This report is a translation of the German-language original
and is provided solely for readers convenience.
In the event of discrepancies or dispute, only the German
version of the report shall be deemed definitive.
Owner and publisher:
Editor and layout:
Controlling, Reporting and Payments/
Robert Anderl
reporting@oekb.at
Graphic design:
Gerald Schuba Corporate Communications+
Translation:
Martin Focken Translating & Editing,
North Bay, ON, Canada
Photography:
Christina Husler, Vienna (page 8)
Philipp Horak, Vienna (page 2)
Am Hof 4 and Strauchgasse 3
P.O. Box 70
1011 Vienna, Austria
Tel. +43 1 531 27-0 or extension
Internet: www.oekb.at
Bank code number 10000
Registered office: 1010 Vienna
Companies register no. FN 85749b
Commercial Court Vienna
UID: ATU15350402, DVR: 0052019
Information in this report is current
as of 28 February 2013.
98
O e s t e r r e i c h i s c h e K o n t r o l l b a n k G r o u p
Am Hof 4, Strauchgasse 3
1011 Vienna, Austria
Tel. +43 1 531 27 - 0
www.oekb.at

OeKB Group Annual Report 2012

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The complete perspective.

Guarantees under the Export Guarantees Act

Other risks 16,095 17,280

Operational risk 30,552 33,478 24,011 24,089

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