INVESTKREDIT BANK AG - Xetra

INFORMATION MEMORANDUM
Dated 17 February 2003
INVESTKREDIT BANK AG
(Incorporated in the Republic of Austria with limited liability)
€350,000,000
Floating Rate Notes of 2003/2008
Issue Date: 19 February 2003
Issue Price: 99.951 per cent
Interest on the €350,000,000 Floating Rate Notes of 2003/2008 (the “Notes”) of Investkredit Bank AG (the “Bank”,
the “Issuer or “Investkredit”) will be payable quarterly in arrear on the Interest Payment Dates falling on, or nearest
to, 19 May, 19 August, 19 November, and 19 February in each year. The interest rate applicable to the Notes from
time to time will be determined by reference to the Euro-zone Interbank Offered Rate for three-month euro deposits
plus a margin of 0.1875 per cent.
The Notes will mature on the Interest Payment Date falling on, or nearest to, 19 February 2008 but may be
redeemed, in whole but not in part, at 100 per cent. of their principal amount in the event of certain changes to
Austrian taxes (subject to certain restrictions), as described in § 5 sub-paragraph (2) of the Terms and Conditions of
the Notes. Principal and interest will be paid without withholding or deduction for or on account of Austrian taxes to
the extent set forth in § 5 sub-paragraph (1) of the Terms and Conditions of the Notes.
Application will be made for admission to listing and trading of the Notes in the Regulated Market (Geregelter Markt)
of the Frankfurt Stock Exchange.
The Notes will initially be represented by a temporary global note (the “Temporary Global Note”), without interest
coupons, which will be deposited with Clearstream Banking AG, Frankfurt am Main, on or about 19 February 2003.
The Temporary Global Note will be exchangeable for interests in a permanent global note (the “Permanent Global
Note”), without interest coupons, on or after a date which is expected to be 31 March 2003 upon certification as to
non-U.S. beneficial ownership. The Permanent Global Note will not be exchangeable for definitive Notes during the
lifetime of the Notes.
Banc of America Securities Limited Credit Suisse First Boston DZ BANK AG
Erste Bank HVB Corporates & Markets
Österreichische Volksbanken-AG
RZB-Austria
Raiffeisen Zentralbank Österreich AG
UBS Warburg

The Issuer, having made all reasonable enquiries, confirms that this Information Memorandum contains all
information with respect to the Issuer, the Issuer and its subsidiaries and affiliates taken as a whole (the
“Group” or the “Investkredit Group”) and the Notes which is material in the context of the issue and offering of
the Notes and that the statements contained herein relating to the Issuer, the Group and the Notes are in every
material particular true and accurate and not misleading, the opinions and intentions expressed in this
document with regard to the Issuer and the Group are honestly held, have been reached after considering all
relevant circumstances and are based on reasonable assumptions, there are no other facts in relation thereto
the omission of which would, in the context of the issue and offering of the Notes, make any statement in this
Information Memorandum misleading in any material respect and all reasonable enquiries have been made by
the Issuer to ascertain such facts and to verify the accuracy of all such information and statements. The Issuer
accepts the responsibility for the contents of this Information Memorandum, accordingly.
No person is authorised to give any information or to make any representations not contained in this
Information Memorandum and any information or representations not so contained must not be relied upon as
having been authorised by or on behalf of the Issuer or the Managers (as defined in “Subscription and Sale”
below). The delivery of this Information Memorandum at any time does not imply that the information contained
in it is correct as at any time subsequent to its date.
This Information Memorandum does not constitute an offer of, or an invitation by or on behalf of the Issuer or
the Managers to subscribe for, or purchase, any of the Notes.
The Notes have not been, and will not be, registered under the United States Securities Act of 1933 (the
“Securities Act”) and are subject to U.S. tax law requirements. Subject to certain exceptions, Notes may not be
offered, sold or delivered in the United States or to U.S. persons.
The distribution of this Information Memorandum and the offering of the Notes in certain jurisdictions may be
restricted by law. Persons into whose possession this Information Memorandum comes are required by the
Issuer and the Managers to inform themselves about and to observe any such restrictions. For a description of
certain further restrictions on offers and sales of Notes and distribution of this Information Memorandum, see
“Subscription and Sale” below.
In this Information Memorandum all references to “EUR”, “euro” and “€” are to the lawful currency of the
member states of the European Union that adopted the single currency in accordance with the Treaty
establishing the European Community, as amended by the Treaty on European Union. The Republic of Austria
(“Austria”) is a participating member state of the European economic and monetary union.
In connection with this issue, Credit Suisse First Boston (Europe) Limited or any person acting for him
may over-allot or effect transactions with a view to supporting the market price of the Notes at a level
higher than that which might otherwise prevail for a limited period after the issue date. However, there
may be no obligation on Credit Suisse First Boston (Europe) Limited or any agent of his to do this.
Such stabilising, if commenced, may be discontinued at any time, and must be brought to an end after
a limited period.
2

TABLE OF CONTENTS
Page
TERMS AND CONDITIONS OF THE NOTES (German / English)................................................. 4
USE OF PROCEEDS................................................................................................................16
CAPITALISATION OF THE BANK ..............................................................................................17
DESCRIPTION OF THE BANK..................................................................................................18
SELECTED FINANCIAL INFORMATION....................................................................................24
TAXATION ...............................................................................................................................26
SUBSCRIPTION AND SALE .....................................................................................................28
GENERAL INFORMATION........................................................................................................31
AUDITED FINANCIAL STATEMENTS 2001 OF THE GROUP.........................................................A1
UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE GROUP as of 30 September 2002...U1
3

Anleihebedingungen
Terms and Conditions of the Notes
– non-binding translation –
§ 1
Form und Nennbetrag
(1) Die von der Investkredit Bank AG, Wien, Republik
Österreich, (nachfolgend die „Emittentin“ genannt)
begebenen variabel verzinslichen Inhaber-Schuldverschreibungen
von 2003/2008 im Gesamtnennbetrag
von
EUR 350.000.000
(in Worten: Euro dreihundertfünfzig Millionen)
sind in untereinander gleichberechtigte, auf den Inhaber
lautende übertragbare Teilschuldverschreibungen zu je
EUR 1.000 (nachfolgend die „Teilschuldverschreibungen“
oder die „Anleihe“ genannt) eingeteilt.
(2) Die Teilschuldverschreibungen werden zunächst
durch eine vorläufige Global-Inhaber-Schuldverschreibung
(die „Vorläufige Global-Schuldverschreibung“)
ohne Zinsscheine verbrieft. Die Vorläufige Global-
Schuldverschreibung kann insgesamt oder teilweise
gegen den Nachweis des Nichtbestehens U.S.-
amerikanischen wirtschaftlichen Eigentums, wie in der
Vorläufigen Global-Schuldverschreibung beschrieben,
kostenfrei für den Inhaber frühestens nach Ablauf von 40
Tagen ab dem Valutierungstag (wie in § 2 Absatz (1) (a)
definiert) in Rechte an einer permanenten Global-
Inhaber-Schuldverschreibung (die „Dauer-Global-
Schuldverschreibung“) ohne Zinsscheine ausgetauscht
werden. Die Vorläufige Global-Schuldverschreibung und
die Dauer-Global-Schuldverschreibung werden bei der
Clearstream Banking AG, Frankfurt am Main, hinterlegt;
die Clearstream Banking AG, Frankfurt am Main, oder
ihr Rechtsnachfolger werden nachstehend als „Verwahrer“
bezeichnet. So lange die Teilschuldverschreibungen
durch die Vorläufige Global-Schuldverschreibung
verbrieft sind, sind zur Zahlung von Zinsen
gesonderte Nachweise des Nichtbestehens USamerikanischen
wirtschaftlichen Eigentums erforderlich.
Die Vorläufige Global-Schuldverschreibung und die
Dauer-Global-Schuldverschreibung werden nachstehend
jeweils die „Global-Schuldverschreibung“ genannt. Das
Recht der Inhaber von Teilschuldverschreibungen (nachstehend
die „Anleihegläubiger“ genannt) auf Lieferung
von Einzelurkunden ist während der gesamten Laufzeit
ausgeschlossen. Den Anleihegläubigern stehen Miteigentumsanteile
an der Global-Schuldverschreibung zu,
die in Übereinstimmung mit den Bestimmungen und
Regeln des Verwahrers und außerhalb der Bundesrepublik
Deutschland von Euroclear Bank S.A./N.V.,
Brüssel, und Clearstream Banking S.A., Luxemburg,
übertragen werden können. Die Global-Schuldverschreibungen
tragen die eigenhändigen Unterschriften
von zwei zeichnungsberechtigten Vertretern der
Emittentin und die eigenhändige Unterschrift eines
Kontrollbeauftragten der DZ BANK AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt am Main
(„DZ BANK“).
§ 1
Form and Denomination
(1) The issue by Investkredit Bank AG, Vienna, Republic
of Austria, (the “Issuer”) of its Floating Rate Notes of
2003/2008 in the aggregate principal amount of
EUR 350,000,000
(in words: Euro three hundred fifty million)
is subdivided into transferable claims to bearer of EUR
1,000 each ranking pari passu with each other (the
“Notes”).
(2) The Notes are initially represented by a temporary
global bearer note (the “Temporary Global Note”) without
coupons. The Temporary Global Note will be
exchangeable, free of charge to the holder, on or after
the day falling after the expiry of 40 days after its Issue
Date (as defined in § 2 subparagraph (1)(a)), in whole or
in part upon certification as to non-U.S. beneficial
ownership in the form set out in the Temporary Global
Note for interests in a permanent global bearer note (the
“Permanent Global Note”) without coupons. The
Temporary Global Note and the Permanent Global Note
will be deposited with Clearstream Banking AG,
Frankfurt am Main; Clearstream Banking AG or its legal
successor are hereinafter referred to as the “Depositary”.
As long as the Notes are represented by the Temporary
Global Note any interest payments on the Notes require
separate certifications as to non-U.S. beneficial
ownership. The Temporary Global Note and the
Permanent Global Note are each hereinafter referred to
as the “Global Note”. The right of the holders of the
Notes (hereinafter referred to as the “Noteholders”) for
the delivery of individual Notes shall be excluded
throughout the entire lifetime of the Notes. The
Noteholders shall be entitled to co-ownership
participations in the Global Note, which are transferable
in accordance with the rules and regulations of the
Depositary and, outside of the Federal Republic of
Germany, pursuant to the rules and regulations of
Euroclear Bank S.A./N.V., Brussels, and Clearstream
Banking S.A., Luxembourg. The Global Bearer Notes
bear the handwritten signatures of two authorised
representatives of the Issuer and the handwritten
signature of a control officer of DZ BANK AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt am Main
(“DZ BANK”).
4

§ 2
Zinsen
(1) (a) Die Teilschuldverschreibungen werden ab dem
19. Februar 2003 (der „Valutierungstag“) mit dem
gemäß Absatz (b) festgestellten variablen Zinssatz
verzinst. Die Zinsen werden vierteljährlich nachträglich
an jedem Zinstermin (wie nachstehend
definiert) fällig.
„Zinstermine“ sind der 19. Mai, 19. August, 19.
November und 19. Februar eines jeden Jahres, es
sei denn, der betreffende Tag ist kein Geschäftstag
(wie nachstehend definiert). In diesem Fall ist
Zinstermin der Geschäftstag, der auf den Tag
unmittelbar folgt, an dem die Zinsen sonst zahlbar
gewesen wären, es sei denn, der Zinstermin würde
dadurch in den nächsten Kalendermonat fallen; in
diesem Fall fällt der Zinstermin auf den unmittelbar
vorhergehenden Geschäftstag. Der Zeitraum vom
Valutierungstag (einschließlich) bis zum ersten
Zinstermin (ausschließlich) und jeder nachfolgende
Zeitraum von einem Zinstermin (einschließlich) bis
zum darauffolgenden Zinstermin (ausschließlich)
werden nachfolgend „Zinsperiode“ genannt. Der
letzte Zinstermin ist der 19. Februar 2008.
„Geschäftstag“ im Sinne dieses Absatzes (1)(a) ist
jeder Tag, an dem die Banken und das Abrechnungssystem
des Verwahrers am Erfüllungsort
gemäß § 12 Absatz (2) für Bankgeschäfte geöffnet
sind.
(b) Der für jede Zinsperiode maßgebende variable
Zinssatz der Teilschuldverschreibungen wird von der
DZ BANK in ihrer Funktion als Zinsermittlungsbank
(die „Zinsermittlungsbank“) nach den folgenden
Bestimmungen festgestellt:
1. Der variable Zinssatz für die jeweilige Zinsperiode
entspricht der gemäß den Ziffern 2., 3.
oder 4. bestimmten European Interbank Offered
Rate („EURIBOR“) für Drei-Monats-Euro-
Einlagen zuzüglich 0,1875 % p. a..
2. Am zweiten TARGET-Geschäftstag vor dem
Valutierungstag und danach am zweiten
TARGET-Geschäftstag vor jedem Zinstermin (der
„Zinsermittlungstag“) wird die Zinsermittlungsbank
den EURIBOR bestimmen. Dieser Angebotssatz
entspricht demjenigen, welcher auf der
Bildschirmseite, bezeichnet als Moneyline
Telerate Seite 248 (oder die Ersatzseite oder der
Ersatzservice, welche diese Seite ersetzen, um
die Interbanken-Angebotssätze für Euro-Einlagen
der führenden Banken in der Eurozone anzuzeigen),
um 11.00 Uhr (Brüsseler Zeit) für Drei-
Monats-Euro-Einlagen für die dem jeweiligen
Zinsermittlungstag folgende Zinsperiode angezeigt
wird.
3. Falls an einem Zinsermittlungstag ein solcher
Angebotssatz nicht angezeigt wird oder falls die
relevante Seite nicht erreichbar ist, wird die
Zinsermittlungsbank an dem Zinsermittlungstag
bei fünf führenden Mitgliedsbanken imEURIBOR-
Panel (die „Referenzbanken“) die Quotierung des
EURIBOR für Drei-Monats-Euro-Einlagen ein-
§ 2
Interest
(1) (a) The Notes shall bear interest from 19 February
2003 (the “Issue Date”) at the floating rate
determined in accordance with sub-paragraph (b).
Interest shall be due quarterly in arrear on each
Interest Payment Date (as defined below).
“Interest Payment Dates” are 19 May, 19 August, 19
November and 19 February of each year unless such
day is not a Business Day (as defined below). In this
case the Interest Payment Date shall be the
Business Day immediately succeeding the day, on
which interest would have been payable, unless the
Interest Payment Date would fall within the next
month; in this case the Interest Payment Date falls
on the immediately preceding Business Day. The
period from and including the Issue Date to but
excluding the first Interest Payment Date and each
successive period from and including an Interest
Payment Date to but excluding the next succeeding
Interest Payment Date is called an “Interest Period”.
The last Interest Payment Date is 19 February 2008.
“Business Day” in the meaning of this sub-paragraph
(1)(a) is each day, on which banks and the clearing
system of the Depositary at the place of performance
in accordance with § 12 sub-paragraph (2) are open
for business.
(b) For each Interest Period the relevant floating rate
of interest on the Notes will be determined by
DZ BANK in its capacity as interest determination
agent (the “Interest Determination Agent”) pursuant
to the following conditions:
1. The floating rate of interest for the respective
Interest Period equals the European Interbank
Offered Rate (“EURIBOR”) for three-months-
Euro-deposits plus 0.1875 % p.a. determined in
accordance with item 2, 3 or 4.
2. On the second TARGET Business Day
preceding the Issue Date and thereafter on the
second TARGET Business Day preceding each
Interest Payment Date (the “Interest
Determination Date”) the Interest Determination
Agent will determine the EURIBOR. Such offered
rate will be that which appears on the display
designated as Moneyline Telerate page 248 (or
such other page or service as may replace it for
the purpose of displaying Euro-zone interbank
offered rates of major banks for euro deposits) -
at 11:00 a.m. (Brussels time) for the respective
Interest Determination Date of the succeeding
Interest Period.
3. If on any Interest Determination Date such
offered rate does not so appear, or if the relevant
page is unavailable, the Interest Determination
Agent will ask five leading member banks of the
EURIBOR-panel (the “Reference Banks”) for
quotes of an EURIBOR-rate offered to leading
banks in the Euro-zone interbank market for
5

holen, der führenden Banken im Interbankenmarkt
der Eurozone angeboten wird. Der EURIBOR für
die betreffende Zinsperiode ist das von der
Zinsermittlungsbank errechnete arithmetische
Mittel (gegebenenfalls gerundet auf das nächste
eintausendstel eines Prozentpunktes, ab 0,0005
wird aufgerundet) der ihr genannten Zinssätze.
4. Wenn an einem Zinsermittlungstag lediglich
eine oder keine der Referenzbanken eine solche
Quotierung abgibt, entspricht der variable
Zinssatz für die folgende Zinsperiode dem Satz
p.a., welcher von der Zinsermittlungsbank als die
Summe von 0,1875 % und dem arithmetische
Mittel (gegebenenfalls gerundet auf das nächste
eintausendstel eines Prozentpunktes, ab 0,0005
wird aufgerundet) des Euro-Darlehenssatzes
festgelegt wird, welcher von führenden, von der
Zinsermittlungsbank bestimmten, Banken in der
Eurozone führenden europäische Banken für
eine 3-Monats-Periode angeboten wird. Wenn die
so von der Zinsermittlungsbank bestimmten
Banken nicht, wie beschrieben, solche Quotierungen
abgeben, entspricht der variable Zinssatz
dem variablen Zinssatz, der für die letzte
Zinsperiode gegolten hat, bezüglich welcher einer
der vorgenannten Unterparagraphen dieses
Paragraphen (b) Anwendung gefunden hat.
„TARGET-Geschäftstag“ ist jeder Tag, an dem das
Europäische Zahlungsverkehrssystem TARGET
(Trans-European Automated Real-time Gross
Settlement Express Transfer System) in Betrieb ist.
(c) Die Zinsermittlungsbank wird an jedem Zinsermittlungstag
oder unverzüglich danach den
variablen Zinssatz sowie den für die fragliche
Zinsperiode zu zahlenden Zinsbetrag festsetzen. Die
auf die Teilschuldverschreibungen entfallenden
Zinsen werden errechnet, indem der auf den
Nennbetrag einer Teilschuldverschreibung nach dem
anwendbaren variablen Zinssatz zu zahlende Betrag
p.a. ermittelt wird. Dieses Ergebnis wird mit der Zahl
der tatsächlichen Tage der fraglichen Zinsperiode
multipliziert und durch 360 geteilt. Das Ergebnis wird
auf den nächsten Eurocent auf- oder abgerundet,
wobei 0,5 Eurocents aufgerundet werden.
(d) Der Zinslauf der Teilschuldverschreibungen endet
mit dem Ablauf des Tages, der dem Tag vorausgeht,
an dem sie zur Rückzahlung fällig werden. Falls die
Emittentin, gleich aus welchem Grunde, die
Teilschuldverschreibungen bei Fälligkeit nicht einlöst,
erfolgt die Verzinsung des ausstehenden Nennbetrages
der Teilschuldverschreibungen vom Tag
der Fälligkeit bis zum Ablauf des Tages, der dem
Tag der tatsächlichen Rückzahlung vorangeht, in
Höhe des gesetzlich festgelegten Satzes für
Verzugszinsen, mindestens jedoch in Höhe des
variablen Zinssatzes, welcher auf die Teilschuldverschreibungen
für diese Zinsperiode gemäß
diesen Anleihebedingungen zahlbar ist.
(e) Die Zinsermittlungsbank veranlasst die Bekanntmachung
des für die entsprechende Zinsperiode
ermittelten variablen Zinssatzes, des auf den
three-months-Euro-deposits. The EURIBOR-rate
for the respective Interest Period is the arithmetic
mean calculated by the Interest Determination
Agent (rounded, if necessary to the nearest one
thousandth of a percentage point, 0.0005 being
rounded upwards) of the EURIBOR-quotes.
4. If on any Interest Determination Date one only
or none of the Reference Banks provides such
quotation, the floating rate of interest for the
succeeding Interest Period shall be the rate per
annum which the Interest Determination Agent
determ ines to be the aggregate of 0.1875 % per
annum and the arithmetic mean (rounded, if
necessary, to the nearest one thousandth of a
percentage point, 0.0005 being rounded
upwards) of the euro lending rates which leading
banks in the Euro-zone selected by the Interest
Determination Agent are quoting, on the relevant
Interest Determination Date, for a period of three
months, to leading European banks, except that,
if the banks so selected by the Interest
Determination Agent are not quoting as
mentioned above, the floating rate of interest
shall be the floating rate of interest in effect for
the last preceding Interest Period to which one of
the preceding sub-paragraphs of this paragraph
(b) shall have applied.
“TARGET Business Day” means each day on which
the European payment transfer system TARGET
(Trans-European Automated Real-time Gross
Settlement Express Transfer System) is operating.
(c) The Interest Determination Agent shall determine
the floating rate of interest on each Interest
Determination Date or thereafter, without undue
delay, as well as determine the interest amount
payable for the respective Interest Period. The
interest amount on each Note shall be calculated by
applying the rate of interest applicable for the
respective Interest Period to the principal amount of
such Note p.a. This result shall be multiplied by the
actual number of days of the respective Interest
Period and shall be divided by 360. The resultant
amount shall be rounded upwards or downwards to
the nearest Eurocent (0.5 Eurocent being rounded
upwards).
(d) The Notes will cease to bear interest as of the
end of the day preceding the respective due date.
Should the Issuer for any reason whatsover fail to
redeem the Notes when due, interest on the principal
amount of the Notes outstanding shall continue to
accrue until the end of the day preceding the day of
actual payment at the higher of the default rate of
interest established by law and the floating rate of
interest payable on the Notes for that Interest Period
in accordance with these Terms and Conditions.
(e) The Interest Determination Agent shall without
undue delay arrange for the publication in accordance
with § 10 of the respective interest rate
6

Nennbetrag jeder Teilschuldverschreibung entfallenden
Zinsbetrages und des Zinstermins unverzüglich
gemäß § 10. Im Falle einer Verlängerung
oder einer Verkürzung der Zinsperiode können von
der Zinsermittlungsbank der zahlbare Zinsbetrag
sowie der Zinstermin nachträglich berichtigt oder
andere geeignete Anpassungsregelungen getroffen
werden, ohne dass es dafür einer Bekanntmachung
bedarf. Im übrigen ist (sofern kein offensichtlicher
Fehler vorliegt) die Ermittlung der variablen
Zinssätze und der jeweils zahlbare Zinsbetrag
endgültig und für alle Beteiligten bindend. Den
Anleihegläubigern stehen gegen die Zinsermittlungsbank
keine Ansprüche wegen der Art der
Wahrnehmung oder der Nichtwahrnehmung der sich
aus diesem § 2 ergebenden Rechte, Pflichten oder
Ermessensbefugnisse zu.
(2) Die Emittentin wird dafür Sorge tragen, dass für die
gesamte Dauer, für die Zinsen auf die Teilschuldverschreibungen
anfallen, jederzeit eine Zinsermittlungsbank
bestellt ist.
(3) Kann oder will die DZ BANK – gleich aus welchem
Grund – ihr Amt als Zinsermittlungsbank nicht mehr
ausüben, ist sie berechtigt, nach Unterrichtung der
Emittentin eine andere Bank von internationalem
Ansehen als Zinsermittlungsbank mit den in diesen
Anleihebedingungen festgelegten Rechten und Pflichten
zu bestellen. Ist der DZ BANK die Bestellung einer
anderen Zinsermittlungsbank nicht möglich, so obliegt
diese Bestellung der Emittentin. Die Übertragung des
Amtes der Zinsermittlungsbank ist von der DZ BANK
oder der Emittentin, falls dieser die Bestellung obliegt,
unverzüglich gemäß § 10 oder, wenn dies nicht möglich
sein sollte, in anderer geeigneter Art und Weise auf
Kosten der Emittentin öffentlich bekannt zu machen.
(4) Die Zinsermittlungsbank als solche ist ausschließlich
Beauftragte der Emittentin. Zwischen der Zinsermittlungsbank
und den Anleihegläubigern besteht kein
Auftrags- oder Treuhandverhältnis.
(5) Die Zinsermittlungsbank ist von den Beschränkungen
des § 181 des Bürgerlichen Gesetzbuches und
entsprechenden Beschränkungen in anderen Rechtsordnungen,
soweit gesetzlich zulässig, befreit.
(6) Unbeschadet der Bestimmungen der Absätze (1)
und (4) haftet die Zinsermittlungsbank dafür, dass sie
Erklärungen abgibt, nicht abgibt, entgegennimmt oder
Handlungen vornimmt oder unterlässt nur, wenn und
soweit sie dabei die Sorgfalt eines ordentlichen
Kaufmanns verletzt hat.
determined for the respective Interest Period, the
interest payable on the principal amount of each
Note and the Interest Payment Date. In the event of
an extension or shortening of the Interest Period, the
amount of interest payable and the Interest Payment
Date may subsequently be corrected, or appropriate
alternative arrangements may be made by way of
adjustment by the Interest Determination Agent
without a publication being necessary with regard
thereto. In all other respects, the determination of the
rates of interest and the amounts of interest payable
in each instance shall (in the absence of manifest
error) be final and binding upon all parties. The Noteholders
do not have any claims against the Interest
Determination Agent regarding the way of handling
or not handling its rights, duties and discretionary
decisions resulting out of this § 2.
(2) The Issuer shall procure that for the time, where
interest is accruing on the Notes, there is at all times an
Interest Determination Agent.
(3) If DZ BANK – for any reason whatsoever – is unable
or unwilling to act as Interest Determination Agent, it
shall be entitled, after informing the Issuer, to appoint
another bank of international standing as Interest
Determination Agent with the rights and obligations as
set forth in these Terms and Conditions of the Notes.
Should DZ BANK be unable to make such appointment,
then the Issuer shall have to appoint the successor
Interest Determination Agent. The transfer of the office
of Interest Determination Agent shall be published by DZ
BANK or, if the Issuer is obliged to make the
appointment, the Issuer, without undue delay pursuant to
§ 10 or, if this should not be possible, in another
appropriate manner at the cost of the Issuer.
(4) The Interest Determination Agent is, in its function as
such, exclusively mandated by the Issuer. No mandate
or fiduciary relationship (Treuhandverhältnis) exists
between the Interest Determination Agent and the
Noteholders.
(5) The Interest Determination Agent is released from
the restrictions of § 181 German Civil Code
(Bürgerliches Gesetzbuch) and similar restrictions of
other applicable laws.
(6) Irrespective of the conditions of sub-paragraphs (1)
and (4) the Interest Determination Agent in making,
omitting, or acceping declarations, in acting or failing to
act shall only be liable in so far as it has violated the due
care of a proper merchant (Sorgfalt eines ordentlichen
Kaufmanns).
§ 3
Rückzahlung
(1) Die Emittentin verpflichtet sich, die Teilschuldverschreibungen
am 19. Februar 2008 zum Nennbetrag
zurückzuzahlen. Die Emittentin kann die Teilschuldverschreibungen,
unbeschadet ihrer Rechte in den in § 5
Absatz (2) genannten Fällen, nicht kündigen. Abgesehen
vom dem Kündigungsrecht gemäß § 8 sind die
Anleihegläubiger nicht berechtigt, die Rückzahlung
der Teilschuldverschreibungen vor Endfälligkeit zu verlangen.
§ 3
Redemption
(1) The Issuer undertakes to redeem the Notes at their
principal amount on 19 February 2008. The Issuer is not
entitled to call the Notes, without prejudice to its rights in
the events mentioned in § 5 sub-paragraph (2). The
Noteholders are not entitled to require the Issuer to
redeem the Notes prior to maturity except as provided in
§ 8.
7

(2) Die Emittentin ist berechtigt, jederzeit Teilschuldverschreibungen
am Markt oder auf sonstige Weise zu
erwerben.
(3) Derart zurückgezahlte oder rückerworbene Teilschuldverschreibungen
(mit Ausnahme von Teilschuldverschreibungen,
die innerhalb des üblichen Wertpapierhandelsgeschäfts
erworben wurden) werden
entwertet und dürfen nicht wieder ausgegeben oder
wieder veräußert werden.
(2) The Issuer is entitled at any time to purchase Notes
in the open market or other-wise.
(3) Notes so redeemed or purchased (other than any
Notes purchased in the ordinary course of a business of
dealing in securities) will be cancelled and may not be
re-issued or resold.
§ 4
Zahlungen / Zahlstelle / Zahlstellenwechsel
(1) Die Em ittentin verpflichtet sich unwiderruflich, Kapital
und/oder Zinsen bei Fälligkeit in Euro zu zahlen. Diese
Verpflichtung umfasst den rechtzeitigen Transfer der
fälligen Beträge an die DZ BANK in ihrer Funktion als
Zahlstelle (die „Zahlstelle“) unter allen Umständen und
ohne Rücksicht auf die Staatsangehörigkeit, den
Wohnsitz und den gewöhnlichen Aufenthaltsort der
Anleihegläubiger. Die Zahlung von Kapital und/oder
Zinsen an die Anleihegläubiger erfolgt, ohne dass die
Ausfertigung eines Affidavits oder die Erfüllung
irgendeiner sonstigen Förmlichkeit verlangt werden darf,
abgesehen von der Beachtung etwaiger am Zahlungsort
geltender Steuer-, Devisen- oder sonstiger Gesetze oder
Vorschriften.
(2) Von der Emittentin erhaltene Zahlungen von Kapital
und/oder Zinsen auf die Teilschuldverschreibungen sind
seitens der Zahlstelle durch Überweisung an den
Verwahrer zwecks Gutschrift auf den Konten der
jeweiligen Depotbanken unverzüglich an die Anleihegläubiger
weiterzuleiten. Die Emittentin wird durch die
Zahlung an den Verwahrer oder dessen Order von ihrer
Zahlungspflicht gegenüber den Anleihegläubigern
befreit.
(3) Kann oder will die DZ BANK – gleich aus welchem
Grund – ihr Amt als Zahlstelle nicht mehr ausüben,
ist sie berechtigt, nach Unterrichtung der Emittentin
eine andere Bank von internationalem Ansehen als
Zahlstelle mit den in diesen Anleihebedingungen
festgelegten Rechten und Pflichten zu bestellen. Ist der
DZ BANK die Bestellung einer anderen Zahlstelle nicht
möglich, so obliegt diese Bestellung der Emittentin. Die
Übertragung des Amtes der Zahlstelle ist von der
DZ BANK oder der Emittentin, falls dieser die Bestellung
obliegt, unverzüglich gemäß § 10 oder, wenn dies
nicht möglich sein sollte, in anderer geeigneter Art
und Weise auf Kosten der Emittentin öffentlich bekannt
zu machen.
(4) Die Zahlstelle als solche ist ausschließlich Beauftragte
der Emittentin. Zwischen der Zahlstelle und den
Anleihegläubigern besteht kein Auftrags- oder Treuhandverhältnis.
(5) Unbeschadet der Bestimmungen des Absatzes (4)
haftet die Zahlstelle in dieser Eigenschaft dafür, dass sie
Erklärungen abgibt, nicht abgibt, entgegennimmt oder
Handlungen vornimmt oder unterlässt nur, wenn und
soweit sie dabei die Sorgfalt eines ordentlichen Kaufmanns
verletzt hat. Die Zahlstelle ist von den
Beschränkungen des § 181 Bürgerliches Gesetzbuch
und entsprechenden Bestimmungen in anderen Rechtsordnungen
befreit.
§ 4
Payments / Paying Agent / Substitution of Paying Agent
(1) The Issuer irrevocably undertakes to transfer, as and
when due, principal and/or interest in Euro. This
undertaking covers the transfer to DZ BANK in its
function as paying agent (the “Paying Agent”) to be
made when due, under any and all circumstances
regardless of the nationality, domicile or residence of the
Noteholders. The payment of principal and/or interest
shall be made to the Noteholders without it being
permissible to require the execution of an affidavit or
compliance with any other formality whatsoever, save as
may be required for the compliance with relevant tax,
foreign exchange or other laws or regulations applicable
in the place where payment is to be made.
(2) Payments of principal and/or interest on the Notes
received from the Issuer shall be promptly made by the
Paying Agent by way of transfer through the Depositary
for credit to the accounts of the depositary banks in
favour of the Noteholders. The Issuer shall be
discharged from its payment obligations towards the
Noteholders by payments to the Depositary or to the
order of the Depositary.
(3) If DZ BANK – for any reason whatsoever - is unable
or unwilling to act as Paying Agent, it shall be entitled,
after informing the Issuer, to appoint another bank of
international standing as Paying Agent with the rights
and obligations as set forth in these Terms and
Conditions of the Notes. Should DZ BANK be unable to
make such appointment, then the Issuer shall have to
appoint the successor Paying Agent. The transfer of the
office of Paying Agent shall be published by DZ BANK
or, if the Issuer is obliged to make the appointment, the
Issuer, without undue delay pursuant to § 10 or, if this
should not be possible, in another appropriate manner at
the cost of the Issuer.
(4) The Paying Agent is, in its function as such,
exclusively mandated by the Issuer. No mandate or
fiduciary relationship (Treuhandverhältnis) exists
between the Paying Agent and the Noteholders.
(5) Irrespective to the conditions of sub-paragraph (4)
the Paying Agent shall, in such capacity, be liable for
declarations made, omitted, received or actions taken or
omitted or declarations of the Noteholders forwarded or
omitted to be forwarded, only if and to the extent that it
does not act with the due care of a proper merchant
(Sorgfalt eines ordentlichen Kaufmanns). The Paying
Agent is released from the restrictions of § 181 German
Civil Code (Bürgerliches Gesetzbuch) and similar
restrictions of other applicable laws.
8

§ 5
Steuern / Kündigung aus Steuergründen
(1) Alle Zahlungen von Kapital und/oder Zinsen auf die
Teilschuldverschreibungen sind unbelastet, ohne Abzug
oder Einbehalt jedweder Art von Steuern, Abgaben,
Veranlagungen oder Gebühren zu leisten, die von oder
in der Republik Österreich oder von einer dort zur
Steuererhebung ermächtigten Behörde auferlegt,
erhoben, eingezogen oder zurückbehalten werden, es
sei denn, ein solcher Einbehalt oder Abzug ist gesetzlich
vorgeschrieben. In einem solchen Fall wird die
Emittentin solche zusätzlichen Beträge zahlen, die
erforderlich sind, damit die den Anleihegläubigern
zufließenden Beträge jeweils den Beträgen an Kapital
und/oder Zinsen entsprechen, die den Anleihegläubigern
zugeflossen wären, wenn ein solcher Einbehalt oder
Abzug nicht erforderlich gewesen wäre. Solche zusätzlichen
Beträge sind jedoch von der Zahlung auf die
Teilschuldverschreibungen ausgenommen, wenn sie
aufgrund von Steuern, Abgaben, Veranlagungen oder
Gebühren
(a) durch jedwede im Namen des Anleihegläubigers
als Depotbank oder Verwahrstelle tätige Person oder
auf sonstige Weise zu leisten sind, die keinen Abzug
oder Einbehalt durch die Emittentin auf von ihr
getätigte Zahlungen von Kapital und/oder Zinsen
darstellen, oder
(b) wegen gegenwärtiger oder früherer persönlicher
oder geschäftlicher Beziehungen des Anleihegläubigers
zur Republik Österreich zu zahlen sind
und nicht allein aufgrund der Tatsache, dass
Zahlungen auf die Teilschuldverschreibungen aus
der Republik Österreich stammen oder für steuerliche
Zwecke als solche anzusehen sind. Dabei ist
die deutsche Zinsabschlagsteuer und der darauf
entfallende Solidaritätszuschlag sowie die österreichische
Kapitalertragsteuer, wie sie jeweils zum
Zeitpunkt der Begebung der Teilschuldverschreibungen
erhoben werden, als Steuer anzusehen, die
unter diesen Unterabsatz (b) fällt und in Bezug auf
die demgemäss keine zusätzlichen Beträge zu
zahlen sind, oder
(c) aufgrund oder infolge (i) einer Richtlinie oder
Verordnung der Europäischen Union hinsichtlich der
Besteuerung von Zinserträgen oder (ii) eines
internationalen Vertrages oder Abkommens hinsichtlich
einer solchen Besteuerung, unter dem die
Republik Österreich oder die Europäische Union eine
Partei ist, oder (iii) einer Gesetzesregelung zur
Durchführung oder Erfüllung oder Umsetzung
solcher Richtlinien, Verordnungen, Verträge oder
Abkommen abgezogen oder einbehalten werden,
oder
(d) aufgrund einer Gesetzesänderung zu zahlen
sind, die später als 30 Tage nach der betreffenden
Fälligkeit einer Zahlung oder, falls diese Zahlung
später erfolgt, nach der gemäss § 10 angekündigten
Leistung der Zahlung in Kraft tritt.
Jede Bezugnahme in diesen Anleihebedingungen
auf Kapital und/oder Zinsen gilt auch als Bezugnahme
auf jedwede sonstigen zusätzlichen Beträge,
die unter diesem Absatz (1) zahlbar sein können.
§ 5
Taxes / Redemption for Tax Reasons
(1) All payments of principal and/or interest in respect of
the Notes shall be made free and clear of, and without
withholding or deduction for, any taxes, duties,
assessments or governmental charges of whatever
nature imposed, levied, collected, withheld or assessed
by or within the Republic of Austria or any authority
therein or thereof having power to tax, unless such
withholding or deduction is required by law. In that event
the Issuer shall pay such additional amounts as will
result in receipt by the Noteholders of such amounts as
would have been received by them had no such
withholding or deduction been required, except that no
such additional amounts shall be payable in respect of
the Notes on account of any taxes, duties assessments
or governmental charges, which
(a) are payable by any person acting as custodian
bank or collecting agent on behalf of the
Noteholders, or otherwise in any manner which does
not constitute a deduction or withholding by the
Issuer from payments of principal and/or interest
made by it, or
(b) are payable by reason of the Noteholder having
or having had, some personal or business
connection with the Republic of Austria and not
merely by reason of the fact that payments in respect
of the Notes are, or for purposes of taxation are
deemed to be, derived from sources in the Republic
of Austria; it being understood that the German
“Zinsabschlagsteuer” (advanced interest income tax)
and the solidarity surcharge thereon as well as the
Austrian “Kapitalertragsteuer” (capital-yields tax),
each as in effect at the time of the issue of the Notes,
is a tax falling under this sub-paragraph (b) and with
respect to which, accordingly, no additional amounts
will be payable, or
(c) are deducted or withheld pursuant to, or in the
consequence of, or as a result of, (i) any European
Union Directive or Regulation concerning the
taxation of interest income, or (ii) any international
treaty or understanding relating to such taxation and
to which the Republic of Austria or the European
Union is a party, or (iii) any provision of law
implementing, or complying with, or introduced to
conform with, such Directive, Regulation, treaty or
understanding, or
(d) are payable by reason of a change in law that
becomes effective more than 30 days after the
relevant payment becomes due, or is provided for
and notice thereof is published in accordance with
§ 10, whichever occurs later.
Any reference in these Terms and Conditions of the
Notes to interest and/or principal shall be deemed
also to refer to any additional amounts which may be
payable under this sub-paragraph (1).
9

(2) Falls (i) die Emittentin zur Zahlung zusätzlicher
Beträge gemäß Absatz (1) infolge einer am oder nach
dem 19. Februar 2003 in Kraft tretenden Änderung oder
Ergänzung von Gesetzen oder Verordnungen der
Republik Österreich oder einer Gebietskörperschaft oder
einer von einer dort zur Steuererhebung ermächtigten
Behörde oder einer geänderten Anwendung oder
amtlichen Auslegung solcher Gesetze oder Verordnungen
verpflichtet ist oder wird und (ii) die Emittentin
diese Verpflichtung nicht durch ihr zur Verfügung
stehende geeignete Maßnahmen vermeiden kann, ist
die Emittentin berechtigt, nach ihrer Wahl zu jedem
Zinstermin durch (unwiderrufliche) Kündigung mit einer
Kündigungsfrist von wenigstens 30 Tagen und
höchstens 60 Tagen gegenüber den Anleihegläubigern
die Teilschuldverschreibungen insgesamt (aber nicht
teilweise) zum Nennbetrag zurückzuzahlen, vorausgesetzt,
dass eine solche Kündigung nicht eher als 90
Tage vor dem frühestmöglichen Termin erfolgen darf,
von dem an die Emittentin zur Zahlung zusätzlicher
Beträge bei einer Fälligkeit einer Zahlung auf die
Teilschuldverschreibungen verpflichtet wäre. Vor
Bekanntmachung einer Kündigung gemäß diesem
Absatz hat die Emittentin der Zahlstelle eine von zwei
Vorstandsmitgliedern der Emittentin unterzeichnete
Bestätigung vorzulegen, die belegt, dass die Emittentin
zu dieser Kündigung berechtigt ist, und der eine
Faktendarstellung beigefügt ist, aus der hervorgeht,
dass die Voraussetzungen zur Ausübung des
Kündigungsrechts der Emittentin vorliegen. Ferner hat
die Emittentin eine Stellungnahme unabhängiger
Rechtsberater anerkannter Reputation als Nachweis
vorzulegen, dass die Emittentin infolge einer solchen
Änderung oder Ergänzung zur Zahlung zusätzlicher
Beträge verpflichtet ist oder wird.
(3) Eine solche Kündigung erfolgt durch Bekanntmachung
gemäß § 10.
(2) The Notes may be redeemed at the option of the
Issuer in whole, but not in part, on any Interest Payment
Date, on giving not less than 30 nor more than 60 days’
notice to the Noteholders (which notice shall be
irrevocable), at their principal amount, if (i) the Issuer
has or will become obliged to pay additional amounts as
provided or referred to in sub-paragraph (1) above as a
result of any change in, or amendment to, the laws or
regulations of the Republic of Austria or any political
subdivision or any authority thereof or therein having
power to tax, or any change in the application or official
interpretation of such laws or regulations, which change
or amendment becomes effective on or after 19
February 2003, and (ii) such obligation cannot be
avoided by the Issuer taking reasonable measures
available to it, provided that no such notice of
redemption shall be given earlier than 90 days prior to
the earliest date on which the Issuer would be obliged to
pay such additional amounts were a payment in respect
of the Notes then due. Prior to the publication of any
notice of redemption pursuant to this sub-paragraph, the
Issuer shall deliver to the Paying Agent a certificate
signed by two Directors of the Issuer stating that the
Issuer is entitled to effect such redemption and setting
forth a statement of facts showing that the conditions
precedent to the right of the Issuer so to redeem have
occurred, and an opinion of independent legal advisers
of recognised standing to the effect that the Issuer has
or will become obliged to pay such additional amounts
as a result of such change or amendment.
(3) Any such notice of redemption shall be given by
publication in accordance with § 10.
§ 6
Vorlegungsfrist
Die Vorlegungsfrist gemäß § 801 Absatz (1) Satz 1 BGB
für fällige Teilschuldverschreibungen wird auf 10 Jahre
abgekürzt. Die Vorlegung der Teilschuldverschreibungen
erfolgt durch Übertragung der jeweiligen Miteigentumsanteile
an der Global-Schuldverschreibung auf das
Konto der Zahlstelle beim Verwahrer.
§ 6
Presentation Period
The period for presentation of Notes due (§ 801 subparagraph
(1) sentence 1 BGB (German Civil Code))
shall be reduced to 10 years. The Notes shall be
presented by transfer of the co-ownership participations
in the Global Bearer Note to the account of the Paying
Agent with the Depositary.
§ 7
Status / Negativverpflichtung
(1) Die Verpflichtungen aus den Teilschuldverschreibungen
stellen (vorbehaltlich nachstehendem Absatz
(2)) jederzeit untereinander gleichberechtigte und nicht
dinglich besicherte Verpflichtungen der Emittentin dar.
Die Zahlungsverpflichtungen der Emittentin aus den
Teilschuldverschreibungen stehen, abgesehen von etwa
gesetzlich bedingten Ausnahmen und von nachstehendem
Absatz (2), jederzeit mindestens im gleichen
Rang mit allen anderen gegenwärtigen oder künftigen
nicht dinglich besicherten und nicht nachrangigen
Verbindlichkeiten der Emittentin, einschließlich der
Verbindlichkeiten aus Einlagen.
§ 7
Status / Negative Pledge
(1) The Notes constitute (subject to sub-paragraph (2)
below) unsecured obligations of the Issuer and shall at
all times rank pari passu and without any preference
among themselves. The payment obligations of the
Issuer under the Notes shall, save for such exceptions
as may be provided by applicable legislation and subject
to sub-paragraph (2) below, at all times rank at least
equally with all its other present and future unsecured
and unsubordinated obligations including liabilities in
respect of deposits.
10

(2) Solange irgendwelche Teilschuldverschreibungen
ausstehen, wird die Emittentin keine Grund- oder
Mobiliarpfandrechte noch sonstige dingliche
Belastungen oder Sicherungsrechte („Sicherheiten“) an
ihrem gegenwärtigen oder künftigen Betrieb, Vermögen
oder ihren Einnahmen, weder insgesamt noch teilweise,
zur Besicherung von Relevanten Verbindlichkeiten (wie
nachstehend definiert) noch für Garantien oder Bürgschaften
in Bezug auf jedwede Relevanten Verbindlichkeiten
bestellen oder deren Fortbestehen gestatten,
ohne gleichzeitig oder vorher die Verbindlichkeiten der
Emittentin aus den Teilschuldverschreibungen im
gleichen Rang anteilig zu im wesentlichen gleichen
Bedingungen zu besichern. Im Sinne dieser Anleihebedingungen
bedeutet „ausstehen“, im Zusammenhang
mit dieser Anleihe, alle begebenen Teilschuldverschreibungen,
ausgenommen diejenigen, (a) die gemäß
den Anleihebedingungen zurückgezahlt wurden, (b) für
die der Rückzahlungstag erreicht wurde und für welche
die Rückzahlungsmittel (einschließlich sämtlicher bis
zum Rückzahlungstag darauf aufgelaufener Zinsansprüche
sowie sämtlicher gemäß den Anleihebedingungen
zahlbarer Zinsbeträge nach diesem Tag) gemäß
diesen Anleihebedingungen an die Zahlstelle transferiert
wurden, (c) auf welche die Ansprüche verfallen sind, (d)
die gemäß diesen Anleihebedingungen zurückgekauft
und entwertet wurden und (e) die Vorläufige Global-
Schuldverschreibung, sofern diese bedingungsgemäß
gegen die Dauer-Global-Schuldverschreibung ausgetauscht
wurde.
(3) Im Sinne dieser Anleihebedingungen bedeutet
„Relevante Verbindlichkeiten“ jede gegenwärtige oder
künftige Verbindlichkeit, und zwar (i) in Form von oder
verkörpert durch Schuldverschreibungen oder andere
Wertpapiere, die derzeit an einer Wertpapierbörse,
einem Freiverkehrs- oder sonstigen Wertpapiermarkt
notiert werden, zugelassen sind oder gehandelt werden
oder dafür geeignet sind, oder (ii) in Form von Darlehen,
jedoch mit Ausnahme aller Darlehen der Europäischen
Investitionsbank.
(2) So long as any Note remains outstanding the Issuer
will not create or permit to subsist any mortgage, charge,
pledge, lien or other form of encumbrance or security
interest (“Security”) upon the whole or any part of its
undertaking, assets or revenues present or future to
secure any Relevant Debt (as defined below), or any
guarantee of or indemnity in respect of any Relevant
Debt unless, at the same time or prior thereto, the
Issuer’s obligations under the Notes are secured equally
and rateably therewith in substantially identical terms
thereto. For the purposes of the Terms and Conditions of
the Notes “outstanding” means, in relation to the Notes,
all the Notes issued except (a) those which have been
redeemed in accordance with the Terms and Conditions
of the Notes, (b) those in respect of which the date for
redemption has occurred and the redemption moneys
(including all interest accrued on such Notes to the date
for such redemption and any interest payable under the
Terms and Conditions of the Notes after such date) have
been duly paid to the Paying Agent as provided in these
Terms and Conditions of the Notes, (c) those in respect
of which claims have become void, (d) those which have
been purchased and cancelled as provided in these
Terms and Conditions of the Notes, and (e) the
Temporary Global Note to the extent that it shall have
been exchanged for the Permanent Global Note
pursuant to its provisions.
(3) For the purposes of these Terms and Conditions,
“Relevant Debt” means any present or future
indebtedness (i) in the form of, or represented by, bonds,
notes, debentures, loan stock or other securities which
are for the time being, or are capable of being, quoted,
listed or ordinarily dealt in on any stock exchange, overthe-counter
or other securities market, or (ii) in the form
of loans, other than any loans from the European
Investment Bank.
§ 8
Kündigung durch die Anleihegläubiger
(1) Jeder Anleihegläubiger ist berechtigt, seine
Teilschuldverschreibungen zu kündigen und deren
sofortige Rückzahlung zum Nennbetrag zuzüglich
aufgelaufener Zinsen zu verlangen, falls eines der
folgenden Ereignisse eintritt und fortdauert:
(a) die Emittentin ist mit der Zahlung von Kapital
und/oder Zinsen auf die Teilschuldverschreibungen
in Verzug, und dieses Versäumnis erstreckt sich auf
einen Zeitraum von mehr als 15 Tagen nach dem
betreffenden Fälligkeitstag, oder
(b) die Emittentin versäumt es, einer oder mehreren
anderen Verpflichtungen unter den Teilschuldverschreibungen
nachzukommen oder diese zu
erfüllen, und diesem Verzug kann nicht Abhilfe
geschaffen werden oder, falls Abhilfe geschaffen
wird, erfolgt diese nicht innerhalb von 45 Tagen nach
einer Benachrichtigung durch den Anleihegläubiger
an die Emittentin, oder
§ 8
Events of Default
(1) Each Noteholder shall be entitled to declare his
Notes due and demand immediate redemption thereof at
their principal amount plus accrued interest, if any of the
following events occurs and is continuing:
(a) the Issuer fails to pay any principal of and/or
interest on the Notes when due and such failure
continues for a period of more than 15 days or
(b) the Issuer does not perform or comply with any
one or more of its other obligations under the Notes
which default is incapable of remedy or, if capable of
remedy, is not remedied within 45 days after notice
of such default shall have been given to the Issuer by
any Noteholder or
11

(c) (i) eine andere gegenwärtige oder künftige
Verbindlichkeit der Emittentin oder einer ihrer
Tochtergesellschaften (wie nachstehend
definiert) aus oder in Zusammenhang mit
Geldaufnahmen wird vor ihrem vereinbarten
Endfälligkeitstermin aufgrund jedweden tatsächlichen
oder potentiellen Verzugs, Kündigungsgrund
oder dergleichen (wie auch immer
beschrieben) vorzeitig fällig (oder kann für fällig
erklärt werden), oder
(ii) eine solche Verbindlichkeit wird bei Fälligkeit
oder innerhalb einer etwa vereinbarten Nachfrist
nicht bezahlt, oder
(iii) die Emittentin oder eine ihrer Tochtergesellschaften
ist mit der Zahlung aufgrund einer
gegenwärtigen oder künftigen Garantie oder
Bürgschaft, die für Verbindlichkeiten aus Geldaufnahmen
Dritter gegeben wurde, in Verzug,
vorausgesetzt, dass der Gesamtbetrag der
betreffenden Verpflichtungen, Garantien und
Bürgschaften, in Bezug auf die einer oder
mehrere der in diesem Absatz (c) aufgeführten
Tatbestände eingetreten sind, über dem Betrag
von EUR 15.000.000,-- oder dessen Gegenwert
liegt, oder
(d) eine Beschlagnahme, Pfändung, Zwangsvollstreckung
oder andere Rechtsverfahren werden auf
oder gegen jedwede Teile an Eigentum, Vermögen
und Erlösen der Emittentin oder einer ihrer
Tochtergesellschaften durchgesetzt, vollzogen oder
eingeklagt, oder
(e) die Emittentin oder eine ihrer Tochtergesellschaften
ist insolvent oder in Konkurs gegangen
(oder wird oder könnte gesetzlich oder gerichtlich so
betrachtet werden) oder kann ihre Zahlungspflichten
aus Verbindlichkeiten nicht erfüllen oder stellt ihre
Zahlungen auf alle oder einen wesentlichen Teil
(oder eine bestimmte Art) ihrer Verbindlichkeiten ein
oder droht dies an oder bietet eine allgemeine
Abtretung oder eine Vereinbarung oder einen
Vergleich bezüglich aller solcher Verbindlichkeiten
an oder führt eine(n) solche(n) durch oder vereinbart
oder erklärt ein Moratorium bezüglich aller oder
jedweder Teile (oder einer bestimmten Art) von
Verbindlichkeiten der Emittentin oder einer ihrer
Tochtergesellschaften, oder
(f) die Liquidation oder Auflösung der Emittentin wird
verfügt oder beschlossen, oder ein zuständiges
Gericht oder eine zuständige Verwaltungsbehörde
verfügt oder die Emittentin beschließt den Antrag auf
gerichtliche Bestellung eines amtlichen Aufsehers
zur Überwachung der Geschäftsleitung der
Emittentin mit bindender Kraft und der Wirkung eines
zeitweiligen Moratoriums (Geschäftsaufsicht) für die
Emittentin oder einen wesentlichen Teil ihres
Vermögens oder eine ihrer Tochtergesellschaften;
oder die Emittentin stellt alle oder einen wesentlichen
Teil ihrer Geschäftstätigkeiten ein oder droht dies an,
mit Ausnahme der Tätigkeiten im Sinne und zur
Durchführung ihrer Sanierung, Reorganisation,
Verschmelzung oder Konsolidierung oder einer
anderen Form des Zusammenschlusses mit einer
anderen Gesellschaft, sofern diese andere
(c) (i) any other present or future indebtedness of
the Issuer or any of its Subsidiaries (as defined
below) for or in respect of moneys borrowed or
raised becomes (or becomes capable of being
declared) due and payable prior to its stated
maturity by reason of any actual or potential
default, event of default or the like (howsoever
described), or
(ii) any such indebtedness is not paid when due
or, as the case may be, within any applicable
grace period, or
(iii) the Issuer or any of its Subsidiaries fails to
pay when due any amount payable by it under
any present or future guarantee for, or indemnity
in respect of, any moneys borrowed or raised by
others, provided that the aggregate amount of the
relevant indebtedness, guarantees and
indemnities in respect of which one or more of
the events mentioned above in this subparagraph
(c) have occurred exceeds EUR
15,000,000 or its equivalent or
(d) a distress, attachment, execution or other legal
process is levied, enforced or sued out on or against
any part of the property, assets or revenues of the
Issuer or any of its Subsidiaries or
(e) the Issuer or any of its Subsidiaries is (or is, or
could be, deemed by law or a court to be) insolvent
or bankrupt or unable to pay its debts, stops,
suspends or threatens to stop or suspend payment
of all or a material part of (or of a particular type of)
its debts, proposes or makes a general assignment
or an arrangement or composition with or for the
benefit of the relevant creditors in respect of any of
such debts or a moratorium is agreed or declared in
respect of or affecting all or any part of (or of a
particular type of) the debts of the Issuer or any of its
Subsidiaries or
(f) an order is made or an effective resolution
passed for the winding-up or dissolution of the Issuer
or any order is made by any competent court or
administrative agency for, or any resolution being
passed by the Issuer to apply for, the judicial
appointment of the Official Controller to supervise the
management of the Issuer with binding authority with
the effect of a temporary moratorium
(Geschäftsaufsicht) in relation to the Issuer or a
substantial part of its assets, or any of its
Subsidiaries, or the Issuer ceases or threatens to
cease to carry on all or a material part of its business
or operations, except for the purpose of and followed
by a reconstruction, reorganisation, merger or
consolidation or other form of amalgamation with
another company, provided such company assumes
all obligations entered into by the Issuer in
12

Gesellschaft alle Verpflichtungen übernimmt, welche
die Emittentin im Zusammenhang mit dieser Anleihe
eingegangen ist, oder im Falle einer Tochtergesellschaft,
wodurch der Betrieb und das Vermögen
der Tochtergesellschaft auf die Emittentin oder eine
andere Tochtergesellschaft übertragen oder auf
andere Weise eingebracht werden.
In diesen Anleihebedingungen wird eine Gesellschaft
als „Tochtergesellschaft“ bezeichnet, sofern die
Emittentin
(i) an ihr eine Stimmrechtsmehrheit hält, oder
(ii) an ihr kapitalbeteiligt und zur Bestellung oder
Abberufung der Mehrheit der Mitglieder ihres
Vorstandes berechtigt ist, oder
(iii) an ihr kapitalbeteiligt ist und gemäß vertraglicher
Regelung mit anderen Aktionären oder
Kapitalbeteiligten die Stimmrechtsmehrheit an ihr
allein kontrolliert, oder falls es sich dabei um eine
Gesellschaft im Mehrheitsbesitz eines Unternehmens
handelt, das selbst eine Tochtergesellschaft
der Emittentin ist.
Das Recht, die Teilschuldverschreibungen zur Rückzahlung
zu kündigen, erlischt, falls der Kündigungsgrund
vor Ausübung dieses Rechts geheilt wurde.
(2) Die Kündigung von Teilschuldverschreibungen hat in
der Weise zu erfolgen, dass der Anleihegläubiger der
Emittentin eine schriftliche Kündigungserklärung übergibt
oder durch eingeschriebenen Brief sendet, die einen
die Emittentin zufriedenstellenden Eigentumsnachweis
enthält und in welcher der Nennbetrag der fällig
gestellten Teilschuldverschreibungen und der Kündigungsgrund
anzugeben sind. Eine solche Kündigung
wird mit Zugang der Kündigungserklärung bei der
Emittentin wirksam.
connection with these Notes, or in the case of a
Subsidiary, whereby the undertaking and assets of
the Subsidiary are transferred to or otherwise vested
in the Issuer or another of its Subsidiaries.
In these Terms and Conditions of the Notes, a
company is a “Subsidiary”, if the Issuer
(i) holds a majority of the voting rights in it, or
(ii) is a member of it and has the right to appoint
or remove a majority of its board of directors, or
(iii) is a member of it and controls alone, pursuant
to an agreement with other shareholders or
members, a majority of the voting rights in it, or if
it is a subsidiary of a company which is itself a
Subsidiary of the Issuer.
The right to declare Notes due shall terminate if the
situation giving rise to it has been cured before such
right is exercised.
(2) Any notice declaring Notes due shall be made by
means of a written declaration delivered by hand or
registered mail to the Issuer, giving a proof of ownership
satisfactory to the Issuer and stating the principal
amount of Notes declared due and stating the event of
default. Any such notice declaring Notes due shall
become effective upon receipt of such notice by the
Issuer.
§ 9
Schuldnerwechsel
(1) Die Emittentin ist jederzeit berechtigt, ohne Zustimmung
der Anleihegläubiger eine andere Gesellschaft
(„Neue Emittentin“), deren Anteile die Emittentin direkt
oder indirekt zu mehr als 90 % hält, zu jeder Zeit bis zur
vollständigen Zahlung aller Verbindlichkeiten aus den
Teilschuldverschreibungen, als Hauptschuldnerin für alle
Verpflichtungen aus und im Zusammenhang mit diesen
Teilschuldverschreibungen an die Stelle der Emittentin
zu setzen. Voraussetzung dafür ist, dass:
(a) die Neue Emittentin rechtlich in der Lage ist,
sämtliche sich aus und im Zusammenhang mit
diesen Teilschuldverschreibungen ergebenden Verpflichtungen
zu erfüllen und insbesondere die hierzu
erforderlichen Beträge ohne Beschränkungen in
Euro an die Zahlstelle zu transferieren und
(b) die Neue Emittentin alle etwa notwendigen
Genehmigungen der Behörden des Landes, in dem
sie ihren Sitz hat, erhalten hat und
§ 9
Substitution of the Issuer
(1) The Issuer shall be entitled at any time without the
consent of the Noteholders to substitute in place of the
Issuer another company (“New Issuer”), at least 90 % of
the shares of which are directly or indirectly held by the
Issuer, as principal debtor for all obligations under and in
connection with the Issue, provided that
(a) the New Issuer can perform all obligations under
and in connection with this Issue and, in particular, is
able to transfer to the Paying Agent all amounts
necessary therefore without restrictions in Euro, and
(b) the New Issuer has been granted all necessary
consents from the authorities of the country in which
it has its seat, and
13

(c) die Neue Emittentin in geeigneter Form nachweist,
dass sie alle Beträge, die zur Erfüllung der
Zahlungsverpflichtungen aus oder in Zusammenhang
mit diesen Teilschuldverschreibungen erforderlich
sind, ohne die Notwendigkeit einer Einbehaltung
von irgendwelchen Steuern oder Abgaben an der
Quelle an die Zahlstelle transferieren darf und
(d) die Emittentin (für diesen Fall auch „Garantin“
genannt) unbedingt und unwiderruflich die Verpflichtungen
der Neuen Emittentin aus diesen
Anleihebedingungen gegenüber den Anleihegläubigern
garantiert und folglich zur Zahlung
anstelle der Neuen Emittentin auf erstes Anfordern
verpflichtet ist.
(2) Ein solcher Schuldnerwechsel ist gemäß § 10 zu
veröffentlichen.
(3) Im Falle eines solchen Schuldnerwechsels gilt (i)
jede Nennung der Emittentin in diesen Anleihebedingungen
als auf die Neue Emittentin bezogen und
(ii) soll das Recht der Anleihegläubiger, entsprechend
§ 8 ihre Teilschuldverschreibungen zur sofortigen Rückzahlung
zum Nennbetrag zuzüglich aufgelaufener
Zinsen zu kündigen, auch gegeben sein, wenn eines der
in § 8 Absatz (1)(c) bis (f) genannten Ereignisse in
bezug auf die Garantin eintritt.
(c) the New Issuer establishes in a suitable manner
that it is permitted to transfer to the Paying Agent all
amounts necessary for the performance of the
payment obligations under or in connection with this
Issue without having to withhold any taxes or
governmental charges at source, and
(d) the Issuer (in such case also referred to as
“Guarantor”) irrevocably and unconditionally
guarantees such obligations of the New Issuer under
these Terms and Conditions of the Notes.
(2) Such a debtor substitution shall be published in
accordance with § 10.
(3) In the event of such a debtor substitution, (i) every
reference in these Terms and Conditions of the Notes to
the Issuer shall be deemed to refer to the New Issuer,
and (ii) the right of the Noteholders pursuant to § 8 to
declare their Notes due for immediate redemption of the
nominal amount plus accrued interest shall also apply if
any of the events referred to in § 8 sub-paragraph (1) (c)
through (f) occurs in relation to the Guarantor.
§ 10
Bekanntmachungen
Alle die Teilschuldverschreibungen betreffenden
Bekanntmachungen sind in einem überregionalen
Pflichtblatt der Wertpapierbörsen, an denen die
Teilschuldverschreibungen in die Preisfeststellung des
Geregelten Marktes einbezogen sind, zu veröffentlichen.
§ 10
Notices
All notices concerning the Notes shall be published in
one of the national mandatory newspapers of each
Stock Exchange on which the Notes are listed for trading
in the Regulated Market (Geregelter Markt).
§ 11
Begebung weiterer Schuldverschreibungen
Die Emittentin behält sich vor, von Zeit zu Zeit ohne
Zustimmung der Anleihegläubiger weitere Schuldverschreibungen
mit gleicher Ausstattung (oder mit
gleicher Ausstattung, abgesehen vom Valutierungstag
und/oder Ausgabepreis) in der Weise zu begeben, dass
sie mit den Teilschuldverschreibungen zusammengefasst
werden, eine einheitliche Anleihe mit ihnen
bilden und ihren Gesamtnennbetrag erhöhen. Der
Begriff „Teilschuldverschreibungen“ umfasst im Falle
einer solchen Erhöhung auch solche zusätzlich
begebenen Schuldverschreibungen.
§ 11
Issuance of Additional Notes
The Issuer reserves the right to issue from time to time
without the consent of the Noteholders additional Notes
with identical terms in all respects (or in all respects
except for the issue date and/or issue price), so that the
same shall be consolidated, form a single issue with and
increase the aggregate principal amount of the Notes.
The term “Notes” shall, in the event of such increase,
also comprise such additional Notes.
§ 12
Anwendbares Recht / Erfüllungsort / Gerichtsstand /
Zustellungsbevollmächtigter
(1) Form und Inhalt der Teilschuldverschreibungen
sowie die Rechte und Pflichten der Emittentin, der
Anleihegläubiger, der Zinsermittlungsbank und der
Zahlstelle bestimmen sich in jeder Hinsicht nach dem
Recht der Bundesrepublik Deutschland.
(2) Erfüllungsort ist Frankfurt am Main.
§ 12
Applicable Law / Place of Performance / Place of
Jurisdiction / Agent for Service of Process
(1) The Notes, as to form and content, and the rights
and obligations of the Issuer, the Noteholders, the
Interest Determination Agent and the Paying Agent shall
in all respects be governed by the laws of the Federal
Republic of Germ any.
(2) Place of performance shall be Frankfurt am Main.
14

(3) Gerichtsstand für alle Rechtsstreitigkeiten aus den in
diesen Anleihebedingungen geregelten Angelegenheiten
ist Frankfurt am Main. Die Anleihegläubiger können ihre
Ansprüche jedoch auch vor den zuständigen Gerichten
in der Republik Österreich geltend machen. Die
Emittentin unterwirft sich hiermit ausdrücklich der
Gerichtsbarkeit der nach diesem Absatz zuständigen
Gerichte. Bei den zuständigen Gerichten in der Republik
Österreich ist dann ebenfalls gemäß Absatz (1) das
Recht der Bundesrepublik Deutschland anzuwenden.
(4) Zum Bevollmächtigten für die Entgegennahme von
Zustellungen bei gerichtlichen Verfahren (einschließlich
Zwangsvollstreckungsverfahren), die im Zusammenhang
mit diesen Anleihebedingungen vor Gerichten in der
Bundesrepublik Deutschland geführt werden, bestellt die
Emittentin die FIDEUROP Treuhandgesellschaft für den
gemeinsamen Markt mbH, Bockenheimer Anlage 15,
D-60322 Frankfurt am Main, Bundesrepublik
Deutschland.
(3) The place of jurisdiction for all proceedings arising
from matters provided for in these Terms and Conditions
of the Notes shall be Frankfurt am Main. The
Noteholders, however, may also pursue their claims
before competent courts in the Republic of Austria. The
Issuer hereby expressly submits to the jurisdiction of the
courts which are competent pursuant to this subparagraph.
In the competent courts of the Republic of
Austria the laws of the Federal Republic of Germany
shall likewise be applied in accordance with subparagraph
(1) above.
(4) The Issuer appoints FIDEUROP Treuhandgesellschaft
für den gemeinsamen Markt mbH,
Bockenheimer Anlage 15, D-60322 Frankfurt am Main,
Federal Republic of Germany, as authorized agent for
accepting service of process of any litigation or legal
proceedings (including enforcement proceedings) before
courts in the Federal Republic of Germany in connection
with these Terms and Conditions of the Notes.
§ 13
Teilnichtigkeit
Sollten Bestimmungen dieser Anleihebedingungen ganz
oder teilweise rechtsunwirksam oder undurchführbar
sein oder werden, so bleiben die übrigen Bestimmungen
dieser Anleihebedingungen in Kraft. Rechtsunwirksame
oder undurchführbare Bestimmungen sind im weitesten
gesetzlich zulässigen Umfang und mit vorheriger
schriftlicher Zustimmung der Emittentin dem Sinn und
Zweck dieser Anleihebedingungen entsprechend durch
rechtswirksame und durchführbare Bestimmungen zu
ersetzen, die in ihrer wirtschaftlichen Auswirkung
denjenigen der rechtsunwirksamen oder undurchführbaren
Bestimmungen so nahe kommen wie rechtlich
möglich.
§ 13
Partial Invalidity
Should any of the provisions of these Terms and
Conditions of the Notes be or become fully or in part
legally invalid or impracticable, the other provisions of
these Terms and Conditions of the Notes shall remain in
force. Any legally invalid or impracticable provisions of
these Terms and Conditions of the Notes shall be
replaced to the full extent permitted by law and with the
prior written consent of the Issuer in accordance with the
intent and purpose of the Terms and Conditions of the
Notes by such legally valid and practicable provisions
which in their economic effect come as close as legally
possible to the legally invalid or impracticable provisions.
§ 14
Sprache
Diese Anleihebedingungen sind in deutscher Sprache
abgefasst. Eine Übersetzung in die englische Sprache
ist beigefügt. Der deutsche Text ist bindend und
maßgeblich. Die Übersetzung in die englische Sprache
ist unverbindlich.
§ 14
Language
These Terms and Conditions of the Notes are written in
the German language and provided with an English
language translation. The German text shall be
controlling and binding. The English language translation
is provided for convenience only.
15

USE OF PROCEEDS
The net proceeds from the issue of the Notes of approximately EUR 349,3 million will be used by
the Bank for its general banking purposes.
16

CAPITALISATION OF THE BANK
The following table sets out the preliminary capitalisation of the Bank as at 31 December 2002,
adjusted to reflect the issue of the Notes:
(EUR
millions)
Shareholders’ funds
Share capital (1) ................................................................................................... 46
Capital reserves ................................................................................................. 61
Revenue reserves .............................................................................................. 120
Liability reserve (Haftrücklage) ............................................................................ 91
Total reserves .................................................................................................... 272
Total shareholders’ funds .................................................................................... 318
Participation capital (Partizipationskapital) ........................................................... -
Supplementary capital (Ergänzungskapital).......................................................... 131
Total participation capital and supplementary capital............................................. 131
Long-term debt
Euro
Total long-term unsecured debt ........................................................................... 2,651
The Notes now being issued ............................................................................... 350
Foreign currency
Long-term unsecured debt .................................................................................. 889
Total long-term debt............................................................................................ 3,890
Total Capitalisation........................................................................................... 4,339
Note:
(1) The issued share capital of the Bank comprises 6,330,000 non-par value shares.
§ 4 sect. 2 of the Memorandum of Association of the Bank provides that the Board of Management
shall be authorised, subject to the approval of the Supervisory Board, to increase the share capital
of the Bank by issuing up to 420,000 new non-par-value bearer shares (ordinary and/or non-voting
preference shares pursuant to Article 115 ff. of the Austrian Companies Act) in one or more issues
up to 23 May 2006, but limited to a maximum amount of EUR 3,052,140.
Except for the Notes now being issued, as mentioned above, there has been no material change in
the capitalisation of the Bank since 31 December 2002.
17

DESCRIPTION OF THE BANK
Introduction
Investkredit Bank AG (the “Bank” or “Investkredit”) is a specialist bank based in Vienna, which offers
financial services exclusively to corporate customers. Investkredit offers a wide range of products
designed to meet the financing and financial asset management needs of its customers. Over more
than 45 years, Investkredit has developed into the second-largest provider of long-term loan finance
for medium- and large-scale enterprises in Austria. As a specialist bank, Investkredit offers a
combination of lending, asset management and treasury services and is an active equity investor.
Investkredit’s shares are listed on the prime market of the Vienna Stock Exchange. The majority of
Investkredit’s shares are held by major Austrian banks and other shareholders which include
industrial enterprises, insurance companies, private shareholders and employees of the Bank.
Investkredit and its associates position themselves strategically as a specialist banking group for
the corporates, local government and real-estate segments. The Investkredit Group (the “Group”)
includes INVEST EQUITY Beteiligungs-AG (“INVEST EQUITY”) (private equity fund), Europa
Consult GmbH (consulting, mergers & acquisitions advice), Kommunalkredit Austria AG
(“Kommunalkredit”) (local government finance) and Europolis Invest Group (real-estate business).
As at 30 September 2002, total Group assets amounted to EUR 13.8 billion, loans and advances to
customers and financial investments stood at EUR 10.2 billion and total capital, calculated in
accordance with Section 23 of the Austrian Banking Law, was EUR 639 million. The total capital
ratio was 11.3 % (31 December 2001: 10.4%).
Moody's Investors Service currently rates Investkredit as A1 and Kommunalkredit as Aa3. The Fitch
rating of Kommunalkredit is currently AA-.
History
Investkredit was established in 1957, on the initiative of the Federal Government and the International
Bank for Reconstruction and Development (formerly the World Bank), as a specialist bank
for the business sector and in particular industry, to make long-term capital available to investing
corporates.
The Bank was incorporated as a joint stock company under private law. Historically Investkredit has
lent predominantly on the basis of long-term fixed-interest loans at its own risk.
As a specialist bank with a general orientation towards the promotion of capital investment,
Investkredit was formally involved in the implementation of industrial and economic policy in Austria.
While retaining its macro-economic role in the financing of capital investment in Austria, the Bank
has developed a range of services to suit customer and market requirements.
In addition to classical loan financing, Investkredit now offers a wide range of medium- and longterm
bank services for corporate customers.
In 2001 the first representative and branch offices were opened in Prague and in Frankfurt am
Main. A representative office in Warsaw followed in 2002.
With the acquisition of a majority holding in Kommunalkredit in 1986, the Group’s product range
was extended to include local government financing in Austria. In recent years, the Group has
expanded its activities for local authorities in Central and Eastern Europe jointly with the Franco-
Belgian Dexia group, the other strategic shareholder in Kommunalkredit.
18

Since 1990, Europolis Invest Group has built up a real-estate portfolio in Vienna and, in recent
years, has concentrated on developing a portfolio of high-quality office properties in Prague,
Budapest and Warsaw.
In December 2001, the European Bank for Reconstruction and Development (“EBRD”) purchased a
35 % stake in the Europolis Invest Group to participate in its Central European expansion strategy.
For this purpose, the EBRD committed EUR 105 million in equity capital, making Europolis Invest
Group one of the largest real-estate funds in the EU candidate countries. The real-estate portfolio
currently represents a market value of approximately EUR 336 million. The Europolis Invest Group
plans to expand its real-estate activities in new markets, such as Romania, Bulgaria and the Baltic
States.
Business with Corporates
Investkredit regards structured finance as its core competence. In addition to classic loan financing,
Investkredit engages in the placement of corporate bonds, in mezzanine financing, in derivative
products for risk hedging and offers financial asset management services. The Bank has a regional
internationalisation policy, under which it focuses on making the whole range of its corporate and
project financing services available to corporates in Central Europe and in Germany.
Investkredit’s core activities also include the ongoing support of companies in the purchase and
sale of holdings in other enterprises, the identification of new acquisition opportunities and the
provision of acquisition finance. In Europa Consult GmbH, the Group has an established M&A
advisory arm. The Group has established a mezzanine capital fund, Invest Mezzanine Management
Gesellschaft mbH to meet the growing need for mezzanine financing.
Investkredit is a founding shareholder of INVEST EQUITY, which has become through international
cooperation with the European Investment Bank, Luxembourg, and with the venture capital industry
shareholders, NIB Capital, The Hague, and Natexis Private Equity International, Paris, one of the
market leaders in venture capital in Austria.
In its specialist field, Investkredit also offers a comprehensive range of services for hedging against
interest-rate and currency risks, such as interest rate swaps, forward rate agreements and caps to
its customers to aid in the management of their finance and assets.
Investkredit International Bank plc, Malta, an onshore banking subsidiary of Investkredit, offers
financial asset management services. In Austria financial asset management is carried out through
Investkredit investment funds, which are tailored to the needs of corporate customers.
Internationally, Investkredit is active in project financing, corporate lending and investment in assetbacked
securities and engages both in loan and bond transactions.
The Bank is a member of the Vienna Stock Exchange and performs the function of a market-maker
for its own bond issues and shares. Dealing in bonds in all major currencies is carried out for the
Bank’s own portfolio. In addition, the Bank acts as a custodian of securities on behalf of its
customers.
19

Recent Developments and Outlook
Recent Developments
The Group was positioned in 2002 as a specialised banking group with its corporate, local
government and real estate segments. Despite the unfavourable market environment, the Group
reduced its overall risk-related costs ((net) credit risk provisions and net income from investments)
compared to 2001. The Group improved its pre-tax profit by 67% to EUR 56 million and its net
profit by 38% to EUR 32 million. Return on equity was over 12%. By forming reserves and raising
capital by means of a form of hybrid tier 1 bond, core capital rose by 19% to EUR 428 million. This
contributed to an improvement in capital ratios.
The Group’s provisional figures as of 31 December 2002 (unaudited)
Provisional
31.12.2002
Previous
Year
Change
Net interest income (EUR m) 105 97 +8%
Pre-tax profit (EUR m) 56 34 +67%
After-tax profit (EUR m) 47 30 +56%
Net profit (EUR m) 32 23 +38%
Total assets (EUR bn) 13,479 11,194 +20%
Financing 1) (EUR bn) 10,626 8,901 +16%
Core capital pursuant to the Austrian
Banking Act (EUR m) 428 358 +19%
Core capital 7.7% 6.8%
Own funds pursuant to the Austrian
Banking Act (EUR m) 710 551 +29%
Total capital ratio 12.8% 10.4%
Return on equity – net profit 2) 12.3% 8.4%
Cost-income ratio 44% 42%
Earnings per share (in EUR) 5.06 3.65 +44%
Number of employees 372 320 16%
1) Loans and advances, provisions and guarantees for trust loans as well as bonds and other fixed-interest securities (except
those issued by states and banks)
2)
Ratio of Group net profit (after taxes and minority interests) to average equity
The increase in net interest income was mainly due to the improvement in margins in the corporate
segment and the significant expansion of business in the local government segment. The improved
exploitation of market potential throughout the Group was the main reason for the increase in net
interest income to EUR 105 million. The EUR 4 million increase in expenses for (net) credit risk
provisions was due to the unfavourable economic situation. The rise in net fee and commission
income to EUR 10 million was mainly due to higher earnings from local government lending
business. The trading result of EUR 2 million was below the previous year’s figure. There were
write-downs of some securities and investments amongst the financial assets. These expenses
were, however, significantly lower than the loss in the previous year. Net income from investments
accordingly improved in the year under review by EUR 18 million. The Group’s expansion led to an
18% increase in general administrative expenses to EUR 52 million. The cost-income ratio (ratio of
general administrative expenses to earnings) was 44% in 2002.
20

The balance of other income and expenses increased to EUR 8 million. It mainly included the
change in value of derivatives. Pre-tax profit for the year increased by 67% to EUR 56 million.
After-tax profit of EUR 47 million is 56% above the comparable figure for 2001. After deducting
minority interests in subsidiaries, net profit came to EUR 32 million. There was a corresponding
38% improvement in earnings per share from EUR 3.65 to EUR 5.06. Based on the share price at
the end of 2002, the price/earnings (p/e) ratio was 8.2.
The Group’s provisional income statement from 01.01. to 31.12.2002 (unaudited)
Income statement as per IAS in EUR m 01.01.-
31.12.2002
01.01.-
31.12.2001
+/-
Net interest income 105 97 +8%
Credit risk provisions (net) -12 -9 +45%
Net fee and commission income 10 5 +99%
Trading result 2 3 -28%
Net income from investments -4 -22 -81%
General administrative expenses -52 -44 +18%
Balance of other income and expenses 8 4 +132%
Pre-tax profit 56 34 +67%
Taxes on income -9 -4 +156%
After-tax profit 47 30 +56%
Minority interests in profit for the period -15 -7 +113%
Net profit 32 23 +38%
Outlook for 2003
The implementation of the range of services provided by the Group in an expanded European core
market is at the centre of its specialisation strategy. Strategic partnerships with market leaders
specialising in each of the European sub-markets (EIB and KfW for financing investments in
corporates, Dexia for local government finance and EBRD for the real estate business in Central
and Eastern Europe) form a base for achieving this strategy.
Management
Supervisory Board
At present, the Supervisory Board consists of the following members:
Univ. Prof. Dr. Geiserich E. Tichy
Helmut Elsner
Karl Samstag
Chairman
Vice-Chairman
CEO and Chairman of the Board of Management
Bank für Arbeit und Wirtschaft Aktiengesellschaft
Vice-Chairman
Vice-Chairman of the Board of Management
Bank Austria Creditanstalt AG
21

Dr. Karl Sevelda Vice-Chairman (from 15 May 2002)
Member of the Board of Management
Raiffeisen Zentralbank Österreich Aktiengesellschaft
Dr. Elisabeth Bleyleben-Koren
Dkfm. Karl Fink
Dkfm. Herwig Hutterer
Mag. Friedrich Kadrnoska
Dr. Heinz Kessler
Mag. Dr. Stephan Koren
Mag. Kurt Löffler
DDr. Regina Prehofer
Dr. Karl Stoss
Dr. Klaus Thalhammer
Vice-Chairperson of the Board of Management
Erste Bank der oesterreichischen Sparkassen AG
Member of the Board of Management
WIENER STÄDTISCHE Allgemeine Versicherung
Aktiengesellschaft
Former Member of the Management Board
Finanzierungsgarantie-Gesellschaft mbH
Member of the Board of Management
Bank Austria Creditanstalt AG
CEO and Chairman of the Board of Management
Nettingsdorfer Papierfabrik Management AG
CEO and Chairman of the Board of Management
Österreichische Postsparkasse Aktiengesellschaft
Manager of the ERP Fund
Head of Division Multinational Corporates, Corporate and Trade
Finance
Bank Austria Creditanstalt AG
Member of the Board of Management
Raiffeisen Zentralbank Österreich Aktiengesellschaft
CEO and Chairman of the Board of Management
Österreichische Volksbanken-Aktiengesellschaft
Dipl.-Ing. Wolfgang Agler
Gabriele Bauer
Ing. Otto Kantner
Hermine Lessiak
Peter Wimmer
Employees’ representative
Employees’ representative
Employees’ representative
Employees’ representative
Employees’ representative
State Commissioner
At present, the State Commissioners are:
Dr. Alexander Gancz
State Commissioner,
Ministerialrat, Austrian Financial Markets Authority (FMA)
Christa Jessenitschnig
Deputy State Commissioner,
Federal Ministry of Finance
22

Board of Management
At present, the Board of Management consists of the following members:
Mag. Dr. Wilfried Stadler
Mag. Klaus Gugglberger
CEO and Chairman of the Board of Management
Member of the Board of Management
Employees
At 30 September 2002, the Group had 320 employees.
23

SELECTED FINANCIAL INFORMATION
The following information is extracted from the audited consolidated financial statements of the
Group for the years ended 31 December 2000 and 31 December 2001 and from the unaudited
consolidated financial statements of the Group for the nine months ended 30 September 2002. This
information is qualified in its entirety by reference to such financial statements (including the notes
to such financial statements) which are part of this Information Memorandum.
Balance Sheet
As at 31 December
As at 30
September
2000 2001 2002
(EUR 1,000) (EUR 1,000) (EUR 1,000)
Assets
Cash and balances with central banks .................................... 4,780 15,106 16,058
Loans and advances to banks ................................................ 661,866 887,105 1,198,569
Loans and advances to customers .......................................... 4,950,232 6,086,376 7,416,323
Risk provisions for loans and advances ................................... (64,310) (69,049) (79,952)
Trading assets ......................................................................... 187,169 93,765 167,024
Financial investments............................................................... 2,689,824 3,831,483 4,630,638
Property and equipment........................................................... 214,839 288,786 368,197
Other assets ............................................................................. 59,007 60,783 103,758
Total ........................................................................................ 8,703,408 11,194,354 13,820,615
Liabilities and equity
Amounts owed to banks........................................................... 2,357,201 2,810,094 2,457,080
Amounts owed to customers..................................................... 328,155 686,532 475,682
Debts evidenced by certificates................................................ 5,139,159 6,453,065 9,134,113
Provisions ................................................................................ 40,675 44,591 48,580
Other liabilities.......................................................................... 324,429 517,421 917,298
Subordinated capital ................................................................ 197,087 291,104 376,324
Minority interests...................................................................... 22,532 133,344 160,760
Equity ....................................................................................... 294,168 258,203 250,779
Total ........................................................................................ 8,703,408 11,194,354 13,820,615
24

Income Statement
As at 31 December
As at 30
September
2000 2001 2002
(EUR 1,000) (EUR 1,000) (EUR 1,000)
Interest and similar income.............................................. 835,221 1,027,889 860,076
Interest and similar expenses .......................................... (758,773) (930,953) (776,642)
Net interest income......................................................... 76,448 96,937 83,433
Fee and commission income................................................... 10,369 10,863 9,589
Fee and commission expense.................................................. (4,511) (5,871) (3,806)
Net fee and commission income.................................... 5,857 4,992 5,783
Net credit risk result.......................................................... (6,586) (8,537) (10,826)
Trading result..................................................................... 2,968 3,019 (2,195)
Net financial investments result...................................... (10,861) (22,024) 5,031
General administrative expenses ................................... (36,227) (43,875) (37,100)
Other operating results.................................................. 770 3,292 270
Extraordinary result....................................................... 0 0 0
Profit for the year before tax ....................................... 32,369 33,804 44,396
Tax on income.................................................................. (2,193) (3,610) (11,080)
Profit for the year after tax........................................... 30,176 30,194 33,316
Minority interests........................................................... (3,415) 7,062 (12,626)
Net profit for the year / Net profit...............…………... 26,760 23,133 20,690
25

TAXATION
Austrian Taxation
The statements herein regarding Austrian taxation are based on the laws in force in Austria
as of the date of this Information Memorandum and are subject to any changes in law. The
following summary does not purport to be a comprehensive description of all the tax
considerations which may be relevant to a decision to purchase, own or dispose of the
Notes. Prospective purchasers of the Notes are advised to consult their own tax advisers
concerning the overall tax consequences of their ownership of the Notes.
Under Austrian tax laws currently in effect, payments of interest on the Notes to a non-resident of
Austria or to a non-Austrian corporation (within the meaning of the relevant Austrian tax laws) in
accordance with the terms and conditions of the Notes will be exempt from any Austrian income tax
including any Austrian withholding tax. If interest payments are made by an agent in Austria, a nonresident
of Austria will, however, have to disclose his identity and address to prevent Austrian
interest tax of 25 per cent. at present being deducted. In these circumstances, such payments will
not be subject to any Austrian income or corporation tax if paid to a non-resident of Austria or to a
non-Austrian corporation having no other relation to Austria except for the mere holding of the
Notes.
Capital gains derived from the sale of the Notes by a non-resident of Austria or by a non-Austrian
corporation not having any permanent establishment in Austria are not subject to Austrian income
or corporation tax. Non-residents of Austria and non-Austrian corporations are not subject to
Austrian inheritance or gift taxes provided the deceased or the donor has no other relationship with
Austria other than the mere holding of the Notes or Coupons and the heir or donee is not a resident
of Austria or an Austrian corporation.
No stamp, issue, registration or similar taxes or duties will, under present Austrian law, be payable
in Austria by the holders of Notes in connection with the issue of the Notes.
Taxation in the Federal Republic of Germany
The information provided below does not purport to be a complete summary of the tax law
and practice currently applicable in the Federal Republic of Germany. For their particular
case, prospective investors should consult their own professional advisers.
Interest Payments on Notes
In the Federal Republic of Germany, interest payments in respect of Notes paid to persons who are
tax residents of the Federal Republic of Germany (or non-residents provided that the interest
income falls in a category of income from German sources, such as income effectively connected
with a German trade or business) are subject to tax.
In case of Notes held in custody by a bank or certain other institutions in the Federal Republic of
Germany, interest on such Notes is subject to an advanced interest income tax (Zinsabschlagsteuer),
at present 30%, and an additional solidarity-surcharge tax on the income tax (Solidaritätszuschlag),
at present 5.5%, so that the total rate is 31.65%. This tax withheld may later be credited
as a prepayment for purposes of the tax assessment. If the Notes are held in custody for a nonresident,
there is no advanced interest income duty or solidarity-surcharge duty.
26

Accrued interest for the time of ownership is also subject to this advanced interest income tax and
solidarity-surcharge tax.
The tax withheld from tax residents will be credited as a prepayment for purposes of the tax
assessment and will be repaid in case of overpayment. Persons who are not tax residents and have
held Notes in their own custody will receive a refund of the tax deducted pursuant to existing double
taxation treaties (if applicable).
The above summary is not exhaustive. It does not take into account the possible taxation of
speculative capital gains or other special considerations that may apply in a particular situation.
Investors and other interested parties are required to obtain individual tax advice in connection with
the acquisition and holding, as well as the sale or repayment of Notes.
Proposed EU Directive on the Taxation of Savings Income
On 21 January 2003 the Council of the European Union approved an amended proposal for a
directive on taxation of savings income, which modifies the prior savings directive proposal dated
13 December 2001 in some areas but is generally consistent with it. Following the agreement, all
EU Member States, with the exception of Austria, Luxembourg and Belgium, will automatically
exchange information about cross border EU interest payments originating in their territories which
are paid to individuals after the Directive comes into effect (probably 1 January 2004).
The position of Austria, Luxembourg and Belgium is that they will be allowed to levy a withholding
tax on such payments in lieu of exchanging information. The rate of withholding tax is 15% initially,
rising to 20% in 2007 and 35% in 2010. 75% of the proceeds derived from such tax withholding on
interest will be passed on by Austria, Belgium and Luxembourg to the residence countries of these
individuals. The agreement reached on 21 January 2003 does not necessarily commit Austria,
Luxembourg and Belgium to move to an automatic exchange of information system after 2010, but
makes this move dependent on the EU reaching unanimous agreement on satisfactory information
exchange arrangements with the US, Switzerland and other territories.
Holders who are individuals should note that, if this proposal is adopted, the Issuer will not
pay any additional amounts under § 5 of the Terms and Conditions of the Notes in respect of
any withholding tax imposed as a result thereof.
27

SUBSCRIPTION AND SALE
An international syndicate of banks and financial institutions under the joint-lead management of
Banc of America Securities Limited, Credit Suisse First Boston (Europe) Limited, DZ BANK AG
Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main and consisting of Bayerische Hypound
Vereinsbank AG, Erste Bank der oesterreichischen Sparkassen AG, Österreichische
Volksbanken-Aktiengesellschaft, Raiffeisen Zentralbank Österreich Aktiengesellschaft, UBS AG,
acting through its business group UBS Warburg (together the “Managers”) have, by a Subscription
Agreement dated 17 February 2003, agreed with the Issuer, subject to the satisfaction of certain
conditions, to subscribe for the Notes at the issue price of 99.951 % of the principal amount
thereof, from which there shall be deducted a total commission of 0.15 % of such principal amount
for management and underwriting.
United States of America:
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as
amended, (the “Securities Act”) and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons except in accordance with Regulation S under the Securities
Act (“Regulation S”) or pursuant to an exemption from the registration requirements of the
Securities Act.
Each Manager has represented that it has offered and sold the Notes, and has agreed that it will
offer and sell the Notes (i) as part of their distribution at any time and (ii) otherwise until 40 days
after the later of the commencement of the offering and the Issue Date, only in accordance with
Rule 903 of Regulation S. Accordingly, neither it, its affiliates nor any persons acting on its or their
behalf have engaged or will engage in any directed selling efforts with respect to the Notes, and it
and they have complied and will comply with the offering restrictions requirement of Regulation S.
Each Manager has agreed that, at or prior to confirmation of sale of Notes, it will have sent to each
distributor, dealer or person receiving a selling concession, fee or other remuneration that
purchases Notes from it during the distribution compliance period a confirmation or notice to
substantially the following effect:
“The securities covered hereby have not been registered under the U.S. Securities Act of
1933 (the “Securities Act”) and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii)
otherwise until 40 days after the later of the commencement of the offering and the Issue
Date, except in either case in accordance with Regulation S under the Securities Act. Terms
used above have the meanings given to them by Regulation S under the Securities Act.”
Terms used in this paragraph have the meanings given to them by Regulation S.
In addition:
(1) except to the extent permitted under U.S. Treas. Reg. §1.163-5(c)(2)(i)(D) (the “D Rules”), (a)
each Manager has represented that it has not offered or sold, and has agreed that during a
40-day restricted period it will not offer or sell, Notes to a person who is within the United
States or its possessions or to a United States person, and (b) represents that it has not
delivered and agrees that it will not deliver within the United States or its possessions
definitive Notes that are sold during the restricted period;
28

(2) each Manager has represented that it has, and has agreed that throughout the restricted
period it will have, in effect procedures reasonably designed to ensure that its employees or
agents who are directly engaged in selling Notes are aware that such Notes may not be
offered or sold during the restricted period to a person who is within the United States or its
possessions or to a United States person, except as permitted by the D Rules;
(3) if it is a United States person, each Manager has represented that it is acquiring the Notes for
purposes of resale in connection with their original issue and if it retains Notes for its own
account, it will only do so in accordance with the requirements of U.S. Treas. Reg. §1.163-
5(c)(2)(i)(D)(6); and
(4) with respect to each affiliate that acquires from it Notes for the purpose of offering or selling
such Notes during the restricted period, each Manager either (a) has repeated and confirmed
the representations and agreements contained in clauses (1), (2) and (3) on its behalf or (b)
agrees that it will obtain from such affiliate for the benefit of the Issuer the representations
and agreements contained in clauses (1), (2) and (3).
Terms used in clauses (1), (2), (3) and (4) have the meaning given to them by the U.S. Internal
Revenue Code of 1986 and regulations thereunder, including the D Rules.
United Kingdom: Each of the Managers has represented and warranted and agreed that:
(1) it has not offered or sold and, prior to the expiry of a period of six months from the issue date
of the Notes, will not offer or sell any Notes to persons in the United Kingdom except to
persons whose ordinary activities involve them in acquiring, holding, managing or disposing
of investments (as principal or agent) for the purposes of their businesses or otherwise in
circumstances which have not resulted and will not result in an offer to the public in the
United Kingdom within the meaning of the Public Offers of Securities Regulations 1995,
(2) it has only communicated or caused to be communicated and will only communicate or cause
to be communicated any invitation or inducement to engage in investment activity (within the
meaning of section 21 of the Financial Services and Markets Act 2000 (the “FSMA”))
received by it in connection with the issue or sale of any Notes in circumstances in which
section 21(1) of the FSMA does not apply to the Issuer, and
(3) it has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the Notes in, from or otherwise involving the United
Kingdom.
Republic of Austria: Each of the Managers has represented and agreed that it will only offer the
Notes in the Republic of Austria in compliance with (1) the provisions of the Austrian Capital
Markets Act 1991 as amended, and (2) any other laws applicable in the Republic of Austria
governing the offer and sale of Notes in the Republic of Austria.
Federal Republic of Germany: Each Manager has represented and agreed that it has only offered
and sold and will only offer and sell Notes in the Federal Republic of Germany in accordance with
the restrictions of the Securities Sales Prospectus Act of 13 December 1990, as amended
(Wertpapier-Verkaufsprospektgesetz) pertaining to Euro-Securities (Euro-Wertpapiere) and any
other laws applicable in the Federal Republic of Germany governing the issue, sale and offering of
securities, and that no Securities Sales Prospectus (Verkaufsprospekt) has been published. In
particular, in connection with the initial placement of the Notes in the Federal Republic of Germany
each of the Managers has represented and agreed that it will not offer and sell Notes by means of
public advertising (öffentliche Werbung). Any resale of Notes in the Federal Republic of Germany
may only be made in accordance with the provisions of the Securities Sales Prospectus Act
29

applicable to the sale and offering of Euro-Securities and any other applicable laws in the Federal
Republic of Germany governing the sale and offering of securities.
General: Each of the Managers has represented and agreed to observe to the best of its
knowledge and belief all applicable laws, regulations and provisions in any jurisdiction in or from
which it may offer, sell or deliver the Notes and shall not, directly or indirectly, offer, sell or deliver
the Notes or distribute or pubIish any offering material in any country or jurisdiction except in
accordance with the terms of the Subscription Agreement and in compliance with all applicable
laws, regulations and provisions.
30

GENERAL INFORMATION
(1) Application will be made to have the Notes admitted to trading in the Regulated Market
(Geregelter Markt) on the Frankfurt Stock Exchange.
(2) The Notes will bear the following legend: “Any United States person who holds this obligation
will be subject to limitations under the United States income tax laws, including the limitations
provided in Sections 165(j) and 1287(a) of the Internal Revenue Code”.
(3) Copies of the Statutes of the Issuer will be available for inspection and copies of the Group’s
annual reports and the unaudited consolidated financial statements of the Group for the nine
months ended 30 September 2002 will be obtainable free of charge at the office of the Paying
Agent in Frankfurt am Main during the term of the Notes. Copies of the Group’s future annual
reports, the Issuer’s future financial statements and the Group’s future unaudited
consolidated interim financial reports will be obtainable free of charge at the office of the
Paying Agent in Frankfurt am Main during the term of the Notes. The Issuer currently
prepares and publishes audited non-consolidated accounts on an annual basis, but not on a
quarterly basis.
(4) Neither the Issuer nor any of its subsidiaries is involved in any litigation or arbitration
proceedings relating to claims or amounts which are material in the context of the issue of the
Notes nor so far as the Issuer is aware is any such litigation or arbitration pending or
threatened.
(5) There has been no material adverse change in the financial position of the Issuer since
31 December 2001.
(6) A resolution relating to the issue of the Notes was adopted by the Board of Management of
the Issuer on 28 January 2003.
(7) The Notes have been accepted for clearance through Clearstream Banking AG, Frankfurt am
Main; the German Securities Code (WKN) is 693396. The ISIN for the issue is
DE0006933963. The Notes have also been accepted for clearance through Clearstream
Banking, société anonyme, Luxembourg, and Euroclear S.A./N.V., Brussels; the common
code number is 16249858.
(8) The Group expects to publish its financial statements for the year ended 31 December 2002
on or about 26 March 2003. The Group prepares quarterly interim financial reports which are
unaudited. The unaudited consolidated financial statements of the Group for the nine months
ended 30 September 2002 were published on 8 November 2002.
31

PRINCIPAL OFFICE OF THE ISSUER
Renngasse 10
A-1013 Vienna
PAYING AGENT, INTEREST DETERMINATION BANK AND LISTING AGENT
DZ BANK AG
Deutsche Zentral-Genossenschaftsbank,
Frankfurt am Main
Platz der Republik
D-60265 Frankfurt am Main
INTERNAL LEGAL ADVISERS TO THE BANK
Dr. Süssenbach and Dr. Hanzl
Renngasse 10
A-1013 Vienna
AUDITORS
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Kolingasse 19
A-1090 Vienna
LEGAL ADVISERS TO THE MANAGERS
as to Austrian Law
Ortner Pöch Foramitti
Rechtsanwälte GmbH
Strauchgasse 1-3
A-1010 Vienna
as to German law
Linklaters Oppenhoff & Rädler
Mainzer Landstraße 16
D-60325 Frankfurt am Main
32

Investkredit Bank AG – Annual Report 2001
including the
AUDITED CONSOLIDATED FINANCIAL STATEMENTS 2001
OF THE INVESTKREDIT GROUP
- A1 -

THE BANK FOR CORPORATES.
Annual Report 2001.
THE BANK FOR CORPORATES

THE INVESTKREDIT GROUP IN THE YEAR 2001.
Jointly with the strategic partner Dexia Crédit Local, Kommunalkredit increased its share capital to
EUR 13.8 m (January 2001)
Investkredit was Lead Manager of SPAR´s corporate bond issue in the nominal amount of EUR 200 m
(March 2001)
The Supervisory Board of Kommunalkredit appointed Patrick Giacobbi to third member of the Board of
Management in addition to Reinhard Platzer (CEO and Chairman) and Gerhard Gangl (March 2001)
For the first time, Kommunalkredit issued bonds denominated in the currency of an EU-candidate
country (CZK 500 m) (March 2001)
Investkredit´s representative office Prague opens for business (April 2001)
With the acquisition of Saski Point, Europolis Invest completes a major real-estate investment in
Warsaw (April 2001)
The European Investment Bank (EIB), Luxembourg, extends its first-ever global loan for investments
in community infrastructure projects (EUR 50 m) to Kommunalkredit (April 2001)
The Annual General Meeting of Investkredit votes to extend the authorised capital of approximately
EUR 3 m through 2006 (May 2001)
Total Investkredit Group assets exceed EUR 10 bn for the first time (June 2001)
Moody´s Investors Service upgrades Kommunalkredit´s rating to Aa3 (June 2001)
Investkredit splits its shares 1 to 10 (July 2001)
First US lease transaction with Kommunalkredit’s participation concluded. Further successful transactions
concluded (July 2001)
The Supervisory Board of Investkredit agrees with the wish of Alfred Reiter to resign as Chairman of
the Board of Management at year-end and appoints Wilfried Stadler to CEO and Chairman, with
Klaus Gugglberger to Member of the Board of Management (September 2001)
Credit Default Swap deal concluded with a volume of USD 700 m to secure the AAA- and AA-rated
Investkredit portfolios (September 2001)
Europolis Invest signs contract on the acquisition of the real-estate complex Alliance Logistic Center
near Warsaw (October 2001)
INVEST EQUITY Group increases its investment volume to EUR 64 m by signing a framework agreement
with KfW, Frankfurt (October 2001) and acquires Strohal Rotationsdruck GmbH on its privatisation
(December 2001)
Establishment of Investkredit branch in Frankfurt (December 2001)
EBRD, London, becomes investor (EUR 105 m) in the Central and East European real estate portfolio
of the Europolis Invest Group (December 2001)
Kommunalkredit Finance & Leasing s.r.o. opens an office in Prague (December 2001)
Europolis Invest acquires real-estate projects: Saski Crescent in Warsaw and Technopark Pekarska in
Prague (December 2001)
Successful completion of divestment project for the GBI by Europa Consult (December 2001)

CONTENTS.
Investkredit at a glance. ................................................................................................ 2
Income development of the Investkredit Group 1997 – 2001. ................................... 3
Key figures of the Investkredit Group 1997 – 2001. ................................................... 4
Letter from the Board of Management. ...................................................................... 5
Policy-making bodies. .................................................................................................... 8
Supervisory Board. .................................................................................................... 8
State Commissioner. .................................................................................................. 8
Board of Management. ............................................................................................ 9
Organizational chart. ................................................................................................... 10
Investkredit shares. ...................................................................................................... 11
Management discussion. ............................................................................................. 13
Investkredit Group. ................................................................................................. 13
Development of earnings. ...................................................................................... 17
Total assets and capital development. .................................................................. 18
Environment and personnel. .................................................................................. 19
Outlook for 2002. .................................................................................................... 20
Segment reporting according to IAS. ......................................................................... 22
Corporates. .............................................................................................................. 22
Corporate lending. ............................................................................................ 23
Corporate finance, private equity, consulting. ............................................... 28
Asset management. ........................................................................................... 30
Treasury............................................................................................................... 31
Local governments. ................................................................................................. 33
Real estate. .............................................................................................................. 35
Financial statements of the Investkredit Group for 2001. ....................................... 37
Income statement of the Investkredit Group. ...................................................... 37
Balance sheet of the Investkredit Group. ............................................................. 38
Statement of changes in equity. ............................................................................ 39
Cash flow statement. .............................................................................................. 40
Notes to the financial statements of the Investkredit Group. ............................ 41
Accounting principles. ....................................................................................... 41
Information on the income statement. ........................................................... 45
Information on the balance sheet.................................................................... 47
Other information. ............................................................................................ 58
Audit Certificates according to IAS and
§ 245a of the Austrian Commercial Code. ............................................................ 68
Report of the Supervisory Board. ............................................................................. 69
Glossary of important technical terms. ...................................................................... 70
Investor relations contacts, and editorial information. ............................................ 74
Group’s international locations. ................................................................................. 76
Contents
THE BANK FOR CORPORATES
1

2THE BANK FOR CORPORATES
Investkredit at a glance
INVESTKREDIT AT A GLANCE.
Investkredit shares.
2001 2000 Change
Earnings per share 1) (in EUR) 3.65
1)
4.23 -14 %
Dividend per share (in EUR)
2)
1.00
1)
0.872 +15 %
Year-end price 1) (in EUR) 36.45 35.00 +4 %
High 1) 41.52 36.03
Low 1) 34.68 32.55
Market capitalization (in EUR m) 230.8 221.6 +4 %
Price-earnings ratio 10.0 8.3
1)
Figures adjusted for sharesplit 1:10 until 13 July 2001
2)
Proposal
Investkredit Group. 3) 2001 2000 Change
EUR m
EUR m
Net interest income 96.9 76.4 +27 %
Profit for the year before tax 33.8 32.4 +4 %
Profit for the year after tax 30.2 30.2 +0 %
Total assets 11,194.4 8,703.4 +29 %
Financing 4) 9,548.1 7,437.8 +28 %
Core capital (Tier 1) pursuant to the
Austrian Banking Act 358.3 272.0 +32 %
Core capital ratio 6.8 % 6.4 %
Own funds (Tier 1 + 2 + 3) pursuant to the
Austrian Banking Act 550.8 421.5 +31 %
Total capital ratio 10.4 % 9.9 %
Number of employees (year-end) 320 290 +10 %
3)
In this Annual Report, totals may not add precisely because of rounding
4)
Loans and advances to customers, provision for guarantees and trust loans as well as bonds and other
fixed-interest securities of other non-bank issuers
Rating.
Moody’s Investors Service long-term short-term
Investkredit Bank AG A1 P-1
Kommunalkredit Austria AG Aa3 P-1

INCOME DEVELOPMENT OF THE
INVESTKREDIT GROUP 1997 – 2001.
Income development
in EUR m Return on assets
40
1.2 %
THE BANK FOR CORPORATES
35
30
25
Profit for the year before tax
Profit for the year after tax
Net profit
Return on assets 1)
0.80 %
32 0.85 %
30
27
34
30
0.71 %
0.9 %
20
24
23
0.6 %
15
0.46 % 19
0.51 %
17
10
5
12
9
7
14
10
8
0.3 %
0
1997 1998 1999 2000 2001
0.0 %
Cost-income ratio Return on equity
65 %
16 %
60 %
55 %
Cost-income ratio 2)
Return on equity before tax 3)
Return on equity – net profit 4) 11.8 %
12.2 %
14 %
12 %
50 %
45 %
52 %
52 %
54 %
9.9 %
9.7 %
8.4 %
10 %
8 %
40 %
5.9 %
6.3 %
7.0 %
42 % 42 %
6 %
35 %
30 %
3.7 % 3.7 %
4 %
2 %
25 %
1997 1998 1999 2000 2001
0 %
1)
Ratio of net income before tax to average risk-weighted assets
2)
Ratio of administrative expenses to income
3)
Ratio of net income before tax to average equity
4)
Ratio of net income after tax to average equity
3

4THE BANK FOR CORPORATES
Key figures
KEY FIGURES OF THE INVESTKREDIT GROUP
1997 – 2001.
HGB HGB IAS IAS IAS
1997 1998 1999 2000 2001
Net interest income (in EUR m) 49.3 51.1 62.1 76.4 96.9
Profit for the year before tax (in EUR m) 11.9 13.7 24.3 32.4 33.8
Net profit (in EUR m) 7.2 8.2 17.3 26.8 23.1
Core capital (Tier 1) pursuant to the
Austrian Banking Act (in EUR m) 209.0 227.9 247.5 272.0 358.3
Own funds (Tier 1 + 2 + 3) pursuant to the
Austrian Banking Act (in EUR m) 330.4 372.2 422.0 421.5 550.8
Total assets (in EUR m) 4,750.1 5,298.4 6,920.4 8,703.4 11,194.4
Employees (year-end) 232 244 269 290 320
Market capitalization (in EUR m) 187.7 204.7 206.0 221.6 230.7
Total capital ratio 12.7 % 13.2 % 12.6 % 9.9 % 10.4 %
Core capital ratio 8.1 % 8.1 % 7.4 % 6.4 % 6.8 %
Interest margin 1) 1.10 % 1.02 % 1.02 % 0.98 % 0.97 %
Operating income per employee (in EUR m) 0.26 0.26 0.24 0.29 0.33
Profit for the year per employee (in EUR m) 0.05 0.06 0.09 0.11 0.11
Cost-income ratio 2) 51.8 % 51.8 % 54.0 % 42.5 % 41.8 %
Return on assets 3) 0.46 % 0.51 % 0.80 % 0.85 % 0.71 %
Return on equity before tax 4) 5.9 % 6.3 % 9.9 % 11.8 % 12.2 %
Return on equity – net profit 5) 3.7 % 3.7 % 7.0 % 9.7 % 8.4 %
Earnings per share (in EUR) 1.36 1.42 2.73 4.23 3.65
Owing to the application of IAS, the figures for 1997 and 1998 are only partly comparable
1)
Ratio of net interest income to average total assets
2)
Ratio of administrative expenses to income
3)
Ratio of net income before tax to average risk-weighted assets
4)
Ratio of net income before tax to average equity
5)
Ratio of net income after tax to average equity

LETTER FROM THE BOARD OF MANAGEMENT.
Letter from the Board of Management
THE BANK FOR CORPORATES
Investkredit sharpened its profile as a specialist bank in 2001 by consistently concentrating the
activities of its subsidiaries in the areas relating to the business of long-term financing. A
clear indication of the acceptance of this specialisation by our clients and business partners is
the rapid growth in the volume of corporate financing and in the volume of financing for local
governments and real-estate projects.
We exceeded our growth targets last year as shown by the consolidated total assets figure of
EUR 11.2 bn. Despite the 27% increase in net interest income to EUR 96.9 m, the overall profit for
the year before tax of EUR 33.8 m was far below expectations. This was mainly due to the need to
make provisions for greater risks in the area of corporate financing. Our cost-income ratio of
42% is excellent in comparison to peers and is the same as last year. We have not changed our goal
of attaining a ratio of below 40% by 2004, as the regional expansion should have a positive impact
on costs after the effects of the initial investment recede.
The equity base of the Group was strengthened in the reporting year, meaning that it will be
possible to fund the expansion of the next few years without taking recourse to capital markets or a
direct capital increase by shareholders. Increasing the share of own funds is often achieved through
alliances with strategic and/or financing partners. A good example is the capital increase of
Dexia-Bank, the leading bank for loans to local governments in the European market, carried out
with Kommunalkredit Austria AG. This partnership enables the joint expansion into the candidate
countries of Central and Eastern Europe and the higher rating supports Kommunalkredit’s standing,
allowing it to offer competitive terms to customers in the public sector.
Another major success was winning over the EBRD as a strategic partner for a joint venture with
our real estate subsidiary, Europolis Invest. The EUR 105 m EBRD capital commitment to the joint
venture makes Europolis Invest one of the major investors and developers in the EU candidate countries.
The investment potential of our subsidiary over the next five years amounts to some EUR 1 bn. A look
at the activities of Europolis in conjunction with the role played by Investkredit as a senior lender for
Central European real-estate projects shows us that 2001 was the year in which Investkredit established
its reputation as a real-estate bank in its own right.
Our Malta subsidiary, Investkredit International Bank, was able to win a number of institutional
customers through a capital increase that also contributed to strengthening the core capital of the
Group.
To prepare, and to a certain extent in anticipation of, the coming capital adequacy requirements
under the Basel Accord (Basel II), we entered into a large-volume, long-term credit default swap
transaction in order to release funds invested in high-grade securities categories. This transaction has
the effect of making own funds available for our core business of acting as a bank for corporates
that extends loans to companies.
Especially now, at a time of uncertainty among corporate customers with regard to the stance taken
by banks regarding the new financing environment of the euro capital market and Basel II, we
reaffirm our commitment to our mission as a specialist bank for medium-sized enterprises. We
were therefore among the first banks to inform their clients thoroughly and repeatedly about the
5

6THE BANK FOR CORPORATES
Letter from the Board of Management
balance sheet rules and the new requirements for the management of corporate capital structure.
A major advantage our customers enjoy is our ability to provide from one source the experience and
know-how to raise the external or equity funding needed for the consolidation or expansion of business.
Against the background of the ever-growing need of lenders to diversify unsystematic risk, we benefit
from our neutral position in the Austrian market, allowing us to act as underwriters and
”facilitators” for arranging major loans and bond issues, thus helping to keep the market for
external capital liquid. A good example was the successful issue of corporate bonds for our clients
last year and the even greater volume floated in the current year with the goal of spreading their
creditor base.
In the course of 2001, Europa Consult was able to establish itself firmly as a recognised and important
member of the investment banking community. Both in structuring management buy-outs and in
consulting for business acquisitions or divestments, major assignments were completed to the
full satisfaction of the clients. Working in close cooperation with the Corporate Lending Team of
the bank, we negotiated transactions involving the mezzanine capital fund created jointly with the
Financing Guarantee Company (FGG) and INVEST EQUITY. The welcome participation of the German
KfW in the activities of INVEST EQUITY enhanced the self-confidence of the team of excellent
investment managers during a difficult year for private equity and venture capital activities.
In the area of treasury services for corporates, Investkredit captured a strong position among the
top 500 Austrian companies as a partner for interest and currency derivative transactions. According
surveys by external consultants, Investkredit holds third place in the Austrian market for treasury
services. In the area of asset management progress was less satisfactory. Investkredit investment
funds suffered from the plummeting capital markets, which decreased the volume of funds placed
with our customers. We have therefore decided to focus even more on risk-averse and guaranteedcapital
products, thereby meeting the needs of finance executives wishing to avoid having to report
investment risks in addition to the normal risks related to their business.
Having now more or less completed the transformation of Investkredit from a bank specialised in
financial aid to an investment bank, a process that began in 1995, and strengthening our major
subsidiaries by entering into expansion partnerships in Europe, the bank’s next strategic move is
towards internationalisation. What has already started at the level of subsidiaries at Kommunalkredit
and Europolis is now being implemented at Investkredit.
While the internationalisation strategy of Investkredit was best reflected in the balance sheet up until
now under investments in investment-grade securities, it is currently being expanded by consistently
exploiting core competencies in the field of corporate financing in a regionally enlarged market.
This territory includes the EU candidate countries of Central and Eastern Europe in addition to the
large market of Germany.
In contrast to the strategies adopted by Kommunalkredit and Europolis, Investkredit has decided not
to pursue internationalisation by acquiring banking interests or subsidiaries, but rather by establishing
branch offices and representative offices. The advantages of this method are the resulting ability
to combine the competence of the local teams with the know-how of the headquarters in Vienna,
which cuts the costs for our clients and shortens times for reaching decisions.
In Central Europe, Investkredit has its first locations in Prague and in Warsaw. With its firstclass
team, the representative office Prague achieved concrete results within a short time; Warsaw is
to follow in early summer 2002. We are setting an example as the only Austrian bank thus far
to set up a branch office in Frankfurt, the seat of the European Central Bank and of important

Letter from the Board of Management
members of the German and continental banking community. The purpose of this Frankfurt branch
office is not only to network with other underwriting partner banks, but also to directly extend
loans to medium-sized companies. Another function of Investkredit´s Frankfurt branch office is to
serve as a window of opportunity for developing innovative products, which we as a specialist
bank would like to offer to our clients with a head-start and, if possible, also with qualitative advantages.
THE BANK FOR CORPORATES
The many successful international alliances of Investkredit in the past years encourage us to redefine
ourselves as a specialised banking group with a Central European focus. This evolutionary
step represents a new and fascinating challenge for all employees. Having established an understanding
of Investkredit as an investment bank, they can deal confidently with the fact that we have opened
the doors even wider to let in new products and market possibilities, and to catch a breath of the
fresh air of international competition.
The Corporate Communications team responsible for the entire public appearance of the company is
now facing the same challenges as the staff at Accounts and Controlling, which was confronted with
preparing financial statements under the newly introduced International Accounting Standards (IAS),
the Legal Department responsible for all contracts, and the Personnel Department that now deals
with an international staff. A specialised bank thrives on the vigorous collaboration and integrity
of a dedicated and competent staff. We would like to thank all employees for their strong
commitment to our mission.
We wish to assure all our shareholders and business partners that we shall do our utmost to perform
even better in the current business. The specific goal is to attain total assets of EUR 12.7 bn and to
increase the ROE before taxes to over 15%. In the area of credit risk management, measures have
been taken to keep default risks within bounds even if the difficult economic environment continues.
Raising the dividend (including bonus) to EUR 1.00 for 2001 is a sign of our conviction that the
strategy taken by Investkredit will lead to sustained sound results.
Our special thanks go to Alfred Reiter, who for many years was the CEO of Investkredit, and until the
end of the business year successfully managed the business of the bank. His readiness to delegate
great amounts of responsibility to employees outstanding both in their jobs and as co-workers was
decisive for the growth and development of new business in all areas of long-term finance. We are
very happy that Alfred Reiter will continue to assist us as an advisor with his vast experience and
critical insights.
Wilfried Stadler
Klaus Gugglberger
7

8THE BANK FOR CORPORATES
Supervisory Board. State Commissioner
POLICY-MAKING BODIES.
Supervisory
Board.
State
Commissioner.
GEISERICH E. TICHY
Chairman
HELMUT ELSNER
Vice-Chairman (from 23 May 2001)
CEO and Chairman of the
Board of Management
Bank für Arbeit und Wirtschaft
Aktiengesellschaft
KARL SAMSTAG
Vice-Chairman
Vice-Chairman of the Board of Management
Bank Austria Aktiengesellschaft
ELISABETH BLEYLEBEN-KOREN
Vice-Chairperson (from 23 May 2001)
Vice-Chairperson of the Board of Management
Erste Bank der oesterreichischen
Sparkassen AG
KARL FINK
(from 23 May 2001)
Member of the Board of Management
WIENER STÄDTISCHE Allgemeine
Versicherung Aktiengesellschaft
KLAUS HABERZETTL
(to 23 May 2001)
General Manager
BA Private Equity GmbH
HERWIG HUTTERER
FRIEDRICH KADRNOSKA
(from 23 May 2001)
Member of the Board of Management
Bank Austria Aktiengesellschaft
HEINZ KESSLER
CEO and Chairman of the
Board of Management
Nettingsdorfer Papierfabrik Management AG
STEPHAN KOREN
(from 23 May 2001)
CEO and Chairman of the
Board of Management
Österreichische Postsparkasse AG
ALEXANDER GANCZ
State Commissioner
Director
Federal Ministry of Finance
KURT LÖFFLER
Executive Manager
ERP-Fund
REGINA PREHOFER
Head of Division Multinational Corporates,
Corporate and Trade Finance
Bank Austria Aktiengesellschaft
KARL SEVELDA
Vice-Chairman (to 23 May 2001)
Member of the Board of Management
Raiffeisen Zentralbank Österreich
Aktiengesellschaft
GERHARD TANEW-ILIITSCHEW
Senior Vice President, Management Services
Raiffeisen Zentralbank Österreich
Aktiengesellschaft
KLAUS THALHAMMER
CEO and Chairman of the
Board of Management
Österreichische Volksbanken-AG
WOLFGANG AGLER
Employees‘ representative
GABRIELE BAUER
Employees‘ representative
REGINA FRICK
(to 30 November 2001)
Employees‘ representative
OTTO KANTNER
Employees‘ representative
HERMINE LESSIAK
(from 1 December 2001)
Employees‘ representative
PETER WIMMER
Employees‘ representative
KURT BAYER
Deputy State Commissioner
Head of Department
Economic Policy and Integration
Federal Ministry of Finance

Board of
Management.
ALFRED REITER
(to 31 December 2001) CEO and Chairman of the Board of Management
Board of Management
Born in Vienna (1939); studied at the University for Commerce and Business Administration
in Vienna; worked at Creditanstalt-Bankverein and Österreichische Länderbank
AG 1958 to 1966; Parliamentary Secretary for Economic Affairs 1966 to 1971; Head of
Cabinet of the Federal Chancellor 1972 to 1975; Member of the Board of Management
Investkredit Bank AG 1976 to 2001, since 1995, CEO and Chairman of the Board of
Management; as from 1 January 2002 Senior Advisor; Chairman of the Supervisory
Board of Kommunalkredit Austria AG since 1998.
THE BANK FOR CORPORATES
WILFRIED STADLER
Member of the Board of Management (to 31 December 2001)
CEO and Chairman of the Board of Management (from 1 January 2002)
Born in Salzburg (1951); studied economics at the Vienna University of Economics and
Business Administration; 1977 to 1983 enterpreneurial experience in his family-owned
industrial company; 1983 to 1986 Economics Advisor with the Österreichischer Wirtschaftsbund;
since 1987 in the Investkredit Bank AG, initially as Relationship Manager
in the Corporate Lending Department, from 1992, Head of Corporate Lending Department;
1990 to 1995 Member of the Board of Management, Kommunalkredit Austria
AG; since 1995, Member of the Board of Management, Investkredit Bank AG, since
2002 CEO and Chairman of the Board of Management; author and editor of numerous
financial publications; lecturer at the Vienna University of Economics and Business
Administration.
KLAUS GUGGLBERGER
Member of the Board of Management (from 1 January 2002)
Born in Innsbruck (1954); studied Social and Economic Sciences at the University of
Innsbruck; 1980 to 1986, Österreichische Volksbanken-AG, lastly, Senior Vice President
and Head of Special Financing Department; 1986 to 1993, Österreichische Länderbank/
Bank Austria-Group, inter alia Manager of LB Leasing Gesellschaft m.b.H. and Chief
Executive Officer of Sovereign Leasing, Manchester, England; since 1993, Head of the
Investkredit Bank AG Structured Finance and Technical Consulting Department,
responsible for Corporate Finance, Financial Analysis and Real Estate; since 2002 Member
of the Board of Management; until 2001, Manager of Europa Consult GmbH.
9

THE BANK FOR CORPORATES
Organizational chart
ORGANIZATIONAL CHART.
Wilfried Stadler
Phone +43/1/53 1 35 Ext. 102
stadler@investkredit.at
Klaus Gugglberger
Phone +43/1/53 1 35 Ext. 104
k.gugglberger@investkredit.at
Corporate Lending
Company Secretary and International Relations
Structured Finance
Claudia Schmied, Ext. 350
schmied@investkredit.at
Walter Riess, Ext. 462
w.riess@investkredit.at
Michael Smutny, Ext. 652
m.smutny@investkredit.at
Relationship-Teams
Ernst Neuhold, Ext. 465
e.neuhold@investkredit.at
Angela Platzer, Ext. 563
a.platzer@investkredit.at
Walter Riess, Ext. 462
w.riess@investkredit.at
Monika Sacher, Ext. 553
m.sacher@investkredit.at
Frankfurt branch
Roland Mittendorfer
Phone +49/69/78 80 96 Ext. 11, mittendorfer@investkredit.de
Wolfgang Reitbauer
Phone +49/69/78 80 96 Ext. 13, w.reitbauer@investkredit.de
Representative office Prague
Lukáš Ramzer
Phone +420/2/33 109 Ext. 324, l.ramzer@investkredit.cz
Ruth Schwarzinger
Phone +420/2/33 109 Ext. 325, schwarzinger@investkredit.cz
Representative office Warsaw
Currently being established
International Business and Asset Management
Walter Anscheringer, Ext. 352, ivg@investkredit.at
Johannes Wundsam, Ext. 577, ivg@investkredit.at
International Business
Johannes Wundsam, Ext. 577, ivg@investkredit.at
Asset Management
Thomas Heinisch, Ext. 526, veranlagungen@investkredit.at
Corporate Communications
Hannah Rieger, Ext. 112, rieger@investkredit.at
Margot Binder, Ext. 111
m.binder@investkredit.at
Internal Audit
Anton Taubenschuss, Ext. 133
a.taubenschuss@investkredit.at
Hermann Angerer, Ext. 134
h.angerer@investkredit.at
Personnel
Karl Öckher, Ext. 190
k.oeckher@investkredit.at
Peter Wimmer, Ext. 331
p.wimmer@investkredit.at
Technical Consulting
Johann Salzmann, Ext. 266, j.salzmann@investkredit.at
Treasury
Peter Tschusch, Ext. 140, p.tschusch@investkredit.at
Rita Hochgatterer, Ext. 141, r.hochgatterer@investkredit.at
Money and Currency Market Dealings
Alfred Buder, Ext. 170, a.buder@investkredit.at
Capital Market
Rita Hochgatterer, Ext. 141, r.hochgatterer@investkredit.at
Handling
Ferdinand Dietersdorfer, Ext. 142, f.dietersdorfer@investkredit.at
Organization and Controlling
Julius Gaugusch, Ext. 330, gaugusch@investkredit.at
Gottfried Grechenig, Ext. 126, g.grechenig@investkredit.at
User Service and Organizational Development
Gottfried Grechenig, Ext. 126, g.grechenig@investkredit.at
IT
Heinz Polke, Ext. 136, h.polke@investkredit.at
Accounts, Taxation and Controlling
Gerald Stich, Ext. 592, g.stich@investkredit.at
Legal Department
Gerhard Ehringer, Ext. 260
g.ehringer@investkredit.at
Johann Salzmann, Ext. 266
j.salzmann@investkredit.at
Corporate Finance
Elisabeth Hackl, Ext. 293
e.hackl@investkredit.at
Real Estate and
Project Financing
Klaus Scheitz, Ext. 268
scheitz@investkredit.at
Financial Analysis
Thomas Mayer, Ext. 525
t.mayer@investkredit.at
Stefan Süssenbach, Ext. 195, suessenbach@investkredit.at
Matthias Hanzl, Ext. 191, hanzl@investkredit.at
10

INVESTKREDIT SHARES.
Investkredit shares
listed on the
prime market of
Wiener Börse
Investkredit shares
IMPORTANT INFORMATION ON INVEST-
Key data per share As at 31 December 2001
KREDIT SHARES. Investkredit shares have been
listed on the prime market of Wiener Börse
Share capital EUR 46,000,110
since the introduction of the new market
Shares outstanding 6,330,000
segmentation at the beginning of 2002. This Securities code number 74810
positions the share in the top trading ISIN Code
AT0000748108
segment of Vienna. The Investkredit Bank AG Reuters
OIKV.VI
shares have been listed on the stock exchange
since September 1990. Initially, the shares were
Bloomberg
OEIKAVEquity
traded on the Unregulated Market; in October
Year-end price (in EUR) 36.45
1993 they were transferred the Official Market, High 2001 41.52
and until the end of 2001 they were listed on Low 2001 34.68
the Specialist Market. The share capital did not
change in the reporting year and was around EUR 46 m. Earnings per share decreased to EUR 3.65 m in
2001. The price-earnings ratio at year-end was 10.0 as compared with 8.3 at the end of 2000. The book
value per share was EUR 40.92 at year-end. The stock’s market capitalisation increased in the course of
2002 from EUR 222 m to EUR 231 m as a result of the rise in the stock market price of the share.
THE BANK FOR CORPORATES
Banks and industrial
enterprises are
major shareholders
STABLE SHAREHOLDER STRUCTURE. Ownership of Investkredit is mainly in the hands of the four
major Austrian banking groups. Further shares are owned by insurance companies, industrial enterprises,
and private shareholders and the staff of the
Shareholders
bank. The stable ownership structure and the
bank’s specialisation are the reasons for Investkredit´s
BA/CA Group 26.7 %
neutral position in the banking BAWAG/P.S.K. Group 21.3 %
sector as compared to the universal banks. RZB 15.6 %
A share of 13% is held by industrial enterprises, Erste Bank 11.3 %
private shareholders and the staff of the bank.
Wiener Städtische 7.4 %
Additional shareholders were gained in an
employee stock participation programme. The
ÖVAG 3.4 %
Annual General Meeting of 24 May 2001,
Other Banks 1.2 %
authorised Investkredit Bank AG until 23 Shares widely held, especially
by industrial enterprises
November 2002, to acquire up to 5% of the
free float for trading purposes.
13.1 %
100.0 %
Difficult times for
capital markets
STOCK MARKETS 2001. Stock markets underwent a very difficult phase during 2001. The slowdown
in the world’s three major economic blocks occurred in conjunction with crises in several emerging
market economies (Argentina, Turkey), bankruptcies of major corporations (Swissair, Enron) and the
further decline of new economy stocks. The low confidence among investors caused the downtrend,
which had begun in the year 2000, to continue. The impact of the events of September 11 finally
brought stock market prices to their lowest point. The recovery which followed in October and
November was surprisingly strong and brought most stock markets back to above their September
levels. For the full year 2001, the extremely volatile stock markets closed with losses ranging from
12% (S&P 500 – USA) to some 20% (German DAX and French CAC), and even 23% (Japan NIKKEI).
The performance of stock markets was much weaker than governmental bond markets. Bond markets
had profited from the decline in stock prices and the sinking interest rates even before September 11,
but as a consequence of the steep rise in long-term interest rates as of November, the bond markets
11

THE BANK FOR CORPORATES
Investkredit shares
Performance of
Investkredit shares
+5%
plunged. The Viennese stock market, which failed to attain its previous year’s performance, did
comparatively well in 2001. The ATX, the leading index of Wiener Börse, closed the year with a 6%
increase year-on-year. The relevant index for the Investkredit stock, the ATX 50, which was incorporated
into the ATX Prime Index in January 2002, rose 5%. The Investkredit stock performed well and its
price rose by about the same percentage year-on-year.
Investkredit shares in EUR ATX 50
42
41
40
39
38
37
36
1.1.2001 - 31.12.2001
660
640
620
600
580
35
34
Investkredit Bank AG shares
ATX 50
33
1/01 2/01 3/01 4/01 5/01 6/01 7/01 8/01 9/01 10/01 11/01 12/01
560
540
Increase in dividend
proposed
PROPOSAL FOR THE DISTRIBUTION OF THE
PROFIT. The Board of Management’s proposal
Financial market calendar 2002
to the Annual General Meeting of 15 May 2002 1 st quarter result 15 May 2002
for the distribution of the net annual profit of
2001, specifically, EUR 6,330,997.86, is to pay
Annual
General Meeting 15 May 2002
a dividend of EUR 1.00 per share (consisting of Ex-date 22 May 2002
EUR 0.90 plus a bonus of EUR 0.10). Changes Dividend payment date 22 May 2002
in the capital of the company during 2001 1 st half-year result 9 August 2002
make it possible to distribute a dividend
bonus to shareholders apart from making
1 st -3 rd quarter results 8 November 2002
allocations to reserves. The total dividend payment represents an increase of 15% over that of the year
before. The total dividend payout of EUR 6,330,000 represents approximately 14% of the 2001 dividend-entitled
share capital of EUR 46,000,110. The proposed distribution in relation to the price of the
Investkredit share of EUR 36.45 on 28 December 2001 represents a dividend yield of 2.7%.
“Don‘t waste time
looking for obstacles
that may not be there.“
12
FRANZ KAFKA

MANAGEMENT DISCUSSION.
The members of the Investkredit Group.
Management discussion
THE BANK FOR CORPORATES
Corporates
Local Governments
Real Estate
Investkredit Bank AG
Vienna
with offices
in Frankfurt, Prague,
Warsaw
Wilfried Stadler
Klaus Gugglberger
Investkredit International
Bank p.l.c.
Sliema, Malta
100 %
John Buttigieg
Walter Anscheringer
Thomas Heinisch
Joseph Said
Kommunalkredit
Austria AG
Vienna
51%
with an office
in Prague
Reinhard Platzer
Gerhard Gangl
Patrick Giacobbi
Europolis Invest
Immobilien Management
Vienna
100 %
Wolfgang Lunardon
Eduard Kornfeld
Bernhard Mayer
Europa Consult
Vienna
100 %
Gerhard Ehringer
Heike Jandl
VBV AG
Vienna
100 %
Julius Gaugusch
Stefan Süssenbach
Prvá Komunálna
Banka A.S.
Zilina, Slovakia
19.65 %
Jozef Mihalik
Gernot Dauman
Francis Teynier
EUROPOLIS INVEST
Management s.r.o.
Prague
100 %
Wolfgang Lunardon
Petr Urbánek
Invest Mezzanine
Capital Management
Vienna
100 %
Oliver Grabherr
Elisabeth Hackl
VBV Holding
Vienna
100 %
Julius Gaugusch
Stefan Süssenbach
Four EUROPOLIS CE
holding companies
Vienna
65 %
Eduard Kornfeld
Wolfgang Lunardon
Bernhard Mayer
INVEST EQUITY
Early Stage
Vienna
100 %
Burkhard Feurstein
Martin Prohazka
INVEST EQUITY
Beteiligungs-AG
Vienna
29.85 %
Helmut Bousek
Martin Prohazka
Two Europolis
real-estate investment
companies
Vienna
100 %
Eduard Kornfeld
Bernhard Mayer
ETech Management
Vienna
100 %
Josef Ernst
Johann Salzmann
13

THE BANK FOR CORPORATES
Management discussion
Specialist banking group
in Europe
THE INVESTKREDIT GROUP. Together with its
holding companies, Investkredit Bank AG has
Shares of the most important companies
in total assets for 2001
positioned itself as a specialist banking group
Investkredit Bank AG 48 %
in Europe which has managed to stand out
against universal banks through its specialisation
Kommunalkredit Austria AG 43 %
on corporate customers, local go-
Investkredit International 3 %
vernments and real estate. In the corporate Other 6 %
segment, Investkredit Bank AG offers the traditional
medium and long-term loans. The Bank holds about 48% of the Group’s total assets. Other
financing instruments such as private equity, mezzanine financing, as well as M&A consultancy services
are offered by the Investkredit’s subsidiaries. Local government financing is offered by Kommunalkredit
Austria AG, which held 43% of the Group’s total assets in the financial year. Furthermore, the Europolis
Invest Group is in charge of real-estate development as well as investments. The Investkredit Group is
building a European network both via its Austrian corporates (through representative and branch
offices) and its international holdings (such as Investkredit Bank p.l.c. or PKB).
Success through
specialisation
Strategic partnerships
with European
specialist banks
STRATEGIC SPECIALISATION. Through its focus on a few selected customer groups, the Investkredit
specialist banking group stands out against universal banks by consciously refraining from engaging
in retail banking. The Investkredit Group has clearly focused on a combination of three business
segments, i.e. corporate customers, local governments and real estate, that is unique throughout Europe.
With regard to balancing the risk during the different phases of the business cycle, this combination
proves advantageous since all three segments have their own business dynamics. Investkredit, furthermore,
combines the functions of a
medium- and long-term financing
bank, an equity investor, an assets
management bank, a treasury bank
and a real-estate bank. It aims at
expanding its existing segments
in an extended European core
market while simultaneously
making use of profitable market
niches.
Thus, it is important for the Bank
to enter into strategic partnerships
with the leading specialists
in the respective European
market segments (such as EIB and
KfW in the field of private equity,
Dexia in the field of local government
financing and EBRD in the
Central and Eastern European realestate
market).
“A business that
makes nothing
but money
is a poor kind
of business.“
In the long term, Investkredit aims
at being among the most competitive
service providers in the respective
business segments where
it strives for quality leadership. In
the medium term, the Group
aspires to:
HENRY FORD
14

Management discussion
consistently seek appropriate combinations of risk and income profiles
broaden and deepen customer relations by providing continuity, know-how and innovative
approaches
reach a sustainable increase in return on equity approaching the 15% mark
further reduce the cost-income ratio to less than 40% by 2004.
THE BANK FOR CORPORATES
Management style
allows for quick
decisions
REALISATION OF STRATEGY. Investkredit’s management team meets on a monthly basis to discuss
the ways and means for a proper realisation of strategy. In addition, an elaborate internal reporting
system allows for fine-tuning existing measures, as well as for quickly adjusting strategy to
changed market conditions. Open and transparent disclosure and reporting practice is one of the key
principles of the Bank’s management style. Department heads meet with the members of the Board
on a daily basis, thus enabling it to reach important business decisions within one day.
Investkredit as
quality leader
among Austrian
banks (TOP 2000)
OUR CUSTOMERS. In 2001, Austrian banks once
again commissioned the independent financial consultancy
Market share among Austrian
corporates
firm Schwabe, Ley & Greiner to conduct a
survey among 3,850 corporates with a turnover of
Turnover
Investkredit‘s
market share
between roughly EUR 7 m and EUR 40 m (the TOP
over
1,100 corporates 2 nd largest
2000 survey of 2001). The survey shows that approximately
EUR 40 m
bank
9% of all medium-sized corporates
belong to Investkredit’s customers. With a share
of 6%, Investkredit Bank AG continues to hold
third position in the TOP 2000 list when it comes
over
EUR 7 m
3,850 corporates 3 rd largest
bank
to long-term financing. In addition,
Investkredit’s market shares have proved extraordinarily
stable during the rather turbulent developments
on the Austrian banking sector. According to the TOP 500 survey carried out in 2000 among
1,100 large corporates with a turnover of more than EUR 40 m, Investkredit is the second largest
long-term loan financier in this customer group. The Bank’s services, however, do not only consist
in long-term financing but also – to an ever increasing extent – in asset management, interest-rate
and currency management. The latest survey shows that the Bank’s market share amounts to 27%
in the field of interest derivatives. According to the TOP 2000 survey, Investkredit Bank AG is the
“quality leader among Austrian banks“. As in previous years, the Bank was also awarded first place
in the category “technical competence“, as well as second place in “decisiveness“ and “price“. It
is above all the technical competence, however, which forms a strong basis for exploiting the business
potentials of other financial instruments.
Difficult market
environment due to
simultaneous
economic contraction
in Europe, the USA
and Japan
THE MARKET ENVIRONMENT. At the end of 2001, the world economy hit a 25-year low. Since
autumn 2000, industrial production has decreased by 7% in the United States. Investments into
plant and equipment have above all declined in the New Economy. Japan’s GDP dropped by 1% in
real figures in 2001 with the country’s economy being still in decline. In Europe, the economic situation
has also significantly worsened throughout the last quarters. With a rate of +1.5%, the European
Union’s growth was cut by more than half as compared with the previous year. Thus, for the first time
since the 1970s, the world’s three largest economies have been simultaneously hit by a severe economic
contraction. In order to ease the pressure on the economy, the US Federal Reserve Bank lowered
the federal funds rate in 11 steps from 6.5% to 1.75% and the discount rate from 6% to 1.25%. The
European Central Bank, however, wanted above all to keep prices stable and thus refrained from
significantly cutting the interest rates for a long time. It finally reduced them in four steps by a total
of 150 basis points. In the view of the coming EU enlargement, the currencies of the candidates
significantly appreciated, while interest rates slowly declined. By way of a liberalisation of the Hungarian
Foreign Exchange Law, the hedging of investments became possible for the first time. While at
15

THE BANK FOR CORPORATES
Management discussion
Austrian corporates
propensity to invest
stable despite the
economic slowdown
the end of the year, the Japanese
yen was traded at about 19% below
the year’s high due to the
country’s persistent economic problems,
the Swiss franc upheld its
high exchange rate and remained
attractive.
“History
cannot tell us
what to do –
only what
not to do.“
As compared with the United
States and Germany, Austria managed
to record a more favourable
real annual growth rate of +1.1%
on average with the close business
relations to the then still expanding
Central and Eastern European
markets reinforcing the positive
trend. Export dynamics, however,
significantly slowed throughout
the year despite good competitive
pricing by Austrian exports. Thus,
JOSÉ ORTEGA Y GASSET
towards the end of the year, export
figures recorded hardly any
increase despite a still expanding
market share. Analogous to this development, net output in the manufacturing industry increased by
an average annual rate of +1.5%. While the number of employed persons remained unchanged,
productivity per hour increased by +2.1% thus lagging behind its longstanding growth rate. Manufacturers
of durables and vehicles still managed to record measurable growth whereas production
increase in consumer goods, primary products, industrial goods and in the basic materials sector
remained significantly below the previous year’s level. However, according to the latest investment
survey conducted by WIFO (Austrian Institute of Economic Research), the readiness to make investments
proved quite stable in 2001 despite the sluggish performance of the economy. Due to
major projects carried out in the investment goods and car manufacturing sector, capital expenditure
amounted to EUR 7.47 bn thus 9% above the previous year’s amount. With a smaller increase in
turnover, the propensity to invest thus reached a new peak (6.6%) in 2001.
Investments of the manufactoring industry in Austria
2000 2001 2002
Nominal amount in EUR m 6,831 7,467 7,315
Changes as compared with the previous year +16.0 % +9.3 % -2.0 %
Real amount in EUR m corresponding to prices of 1995 6,664 7,270 7,102
Changes as compared with the previous year +15.3 % +9.1 % -2.3 %
On the whole, Investkredit still managed to profit from its business opportunities despite the
overall volatility of the market environment.
16

Increase in business
volume and earnings
DEVELOPMENT OF EARNINGS
Management discussion
INCREASE IN EARNINGS. The Bank for Corporates’ efforts to further develop its service range led to
an increase in both business volume and earnings. The Bank’s operating earnings grew significantly;
however, the economic slowdown entailed higher investment in risk provisions.
THE BANK FOR CORPORATES
Significant increase
in operating earnings
NET INTEREST INCOME. In the financial year,
net interest income was even reinforced in its
Development of net interest income
1997 – 2001
position as the most important source of
Net interest income in EUR m
earnings. As compared with 2000, net interest
Net interest margin
96.9
income rose by EUR 20 m or 27% to 1.10 % 1.02 % 1.02 % 0.98 % 0.97 %
EUR 96.9 m with the increase in total assets by
76.4
29% being mainly responsible for this development.
62.1
Income from lending business, securiti-
49.3 51.1
es and investments in real estate also grew
accordingly. Because of a steeper interest rate
curve in the second half of the year, interest
contributions relating to maturity transformations
1997 1998 1999 2000 2001
improved. The interest margin, i.e. the ratio of net interest income to the average amount of
total assets, thus dipped from 0.98% to 0.97%. This development was due to the relative increase in
local government financing in which lower margins and lower credit risks outweigh.
Higher expenses for
risk provisions
OTHER OPERATING RESULTS. Net fee and commission income amounted to EUR 5.0 m and thus
decreased by 15% as compared with 2000. This development was caused by higher expenditure in
the securities sector. The most significant items of income came once again from environmental aid
administered by Kommunalkredit for the Republic of Austria on a trust basis. In the financial year,
total risk provision for loans in the lending business increased by 30% thus reaching an amount of
EUR 8.5 m. The economic development, furthermore, led to higher expenses concerning value adjustment
of corporate financing. On the whole, total risk provision for the lending business rose by
EUR 4.7 m or 7% to EUR 69.0 m. At EUR 0.3 m, direct write-offs, however, remained on a very low
level in the financial year. With EUR 3.0 m, the net trading result reached the same amount as in the
previous year. Securities trading recorded a rather dissatisfying loss of EUR 1.4 m whereas derivatives
trading achieved an amount of EUR 3.9 m thus improving on the previous year’s result. Financial
investments were hit by the strongest decline due to the assessment of marketable securities and
the declining credit quality of a bond reported as fixed asset. Due to the write-down of the Bank’s
interest in INVEST EQUITY Beteiligungs-AG, the net result from investments also contributed to a total
minus of EUR 22.0 m.
New employees to
support expansion
GENERAL ADMINISTRATIVE EXPENSES. Due to the Group’s strong expansion, general administrative
expenses rose by 21% to EUR 44 m. An increase in personnel expenses by EUR 7.3 m to
EUR 27.5 m was caused by both higher provisions for retirement which rose by EUR 4 m and the
rather unfavourable market development for pension schemes. The number of employees increased
by 30 to 320 (disregarding the Board of Management and staff on maternity leave) which entailed a
rise in current wage costs of EUR 2.6 m or 16%. Other administrative expenses rose by 2% from
EUR 13.4 m to EUR 13.7 m, proportionately less than income. Depreciation and value adjustment of
property and equipment increased only slightly to EUR 2.6 m. In the past year, investments in property
and equipment focused on computer hardware and securities software. On the whole, general administrative
expenses rose by a total of 22% from EUR 36.2 m to EUR 44.3 m. The cost-income ratio
(the ratio of general administrative expenses to income) remained at the previous year’s level of 42%
thus resting far behind the average obtained in the banking sector.
17

THE BANK FOR CORPORATES
Management discussion
Development of income and expenses 2000 and 2001
1
3
76
6 7
11
36
3
3
97
5
9
22
44
in EUR m
32
34
Income 2000
Other operating
results
Trading results
Net fee and
commission income
Net interest income
Expenses 2000
Net credit risk
result
Net financial
investments result
General
administrative
expenses
Profit for the year
2000 before tax
Income 2001
Other operating
results
Trading results
Net fee and
commission income
Net interest income
Expenses 2001
Net credit risk
result
Net financial
investments result
General
administrative
expenses
Profit for the year
2001 before tax
Earnings per share
reduced by higher taxes
and minority interests
PROFIT FOR THE YEAR. In the financial year, other operating results rose to EUR 3.3 m. This development
was mainly due to an increase in value of those derivatives that do not serve any trading purposes.
As compared with 2000, the profit for the year before tax grew by 4% to EUR 33.8 m. Taking into
account taxes of EUR 3.6 m, the profit for the year after tax amounted to EUR 30.2 m. If the stakes of
international partners in subsidiaries are also taken into consideration, the Group recorded a net profit
of EUR 23.1 m. Accordingly, earnings per share dropped from EUR 4.32 in 2000 to EUR 3.65.
TOTAL ASSETS AND CAPITAL DEVELOPMENT.
Dynamic growth
BALANCE SHEET STRUCTURE. The Investkredit
Development of volume 1997 – 2001
Group recorded a 29% expansion in total
in EUR m
assets to some EUR 11.2 bn, a similarly dynamic
growth like in the year before.
Risk-weighted assets
Total assets
11,194
8,703
The largest part of the contributions to
growth resulted from loans and advances
6,920
to customers. Significant growth rates were 4,750
5,298
4,276
5,281
achieved particularly in the field of local government
business in the course of bidding for
3,343
2,592
2,812
loans auctioned by the Republic of Austria. In
addition, securities financing contained in
1997 1998 1999 2000 2001
financial investments also increased distinctly. In the reporting year, the Investkredit Group has continued
its financial investments in highly-rated international bonds.
Balance sheet structure 2001
Loans and advances 54 % (2000: 57 %)
to customers
Financial 34 % (2000: 31 %)
investments
Other 11 % (2000: 12 %)
assets
Debts evidenced 58 % (2000: 59 %)
by certificates
Amounts owed to banks 25 % (2000: 27 %)
Other liabilities 17 % (2000: 14 %)
Loans and advances to customers – mainly to corporates
and local governments – remain the largest
share on the assets side with 54% after 57% in
the year before. On the liabilities side, securitized
debts continue to represent the largest share with
a slight decline to 58%. In 2001 bond issues for
the refinancing of new business reached a volume
of some EUR 1.6 bn. Amounts owed to banks
amounting to 25% are of minor significance. Compared
with the rise in total assets, risk-weighted
assets recorded a proportionately smaller increa-
18

Management discussion
se. This development is due to the fact that the Investkredit Group continues to adopt a low-risk
business policy, which, for example, becomes evident in the increase of communal financings that do
not need backing with regulatory capital. By contrast, Investkredit concluded a credit default swap
amounting to USD 700 m in the reporting year. Thereby the backing of Investkredit’s portfolio with
capital resources consisting of AAA and AA rated securities was reduced significantly.
THE BANK FOR CORPORATES
Significantly improved
capital ratio
CAPITAL RESOURCES. Due to a set of measures taken the core capital of the Investkredit Group
has increased significantly by 32% to EUR 358 m in the reporting year: A contribution amounting to
EUR 32 m was provided by the capital increase Capital development 1997 – 2001
of the Kommunalkredit Austria AG, which
Capital resources (Tier 1+2+3) in EUR m
was primarily executed by the strategic partner Core capital (Tier 1)
Dexia Crédit Local at the beginning of the year
13.2 % 12.6 %
2001. The 35% interest of the EBRD in the 12.7 %
10.4 %
Total capital ratio
Europolis CE Group with a commitment amounting
to more than EUR 105 m affected the increa-
9.9 % 551
Core capital ratio
8.1 % 8.1 % 422 421
se in core capital by means of revaluations of individual
real-estate management companies and
330
6.4
6.8 %
372 7.4 %
358
%
purchase price payments of some EUR 24 m.
272
248
209
228
Another measure was the capital increase of
Investkredit International Bank p.l.c., where 1997 1998 1999 2000 2001
financing investors subscribed to preference shares amounting to EUR 17 m. The formation of reserves
contributed to the increase in core capital with an amount of EUR 13 m. The total capital
resources to be taken into account according to § 23 of the Austrian Banking Act amounted to
EUR 551 m. As of 31 December 2001, the solvency ratio had increased from 9.9% of the assessment
basis to 10.4%. The Tier 1 capital ratio also rose considerably, namely from 6.4% to 6.8%. The capital
ratios, which are well above average as a result of the set of measures that have been taken, allow for
the continuation of an expansionary business policy even after the current year.
RATING. The rating for Investkredit Bank AG by Moody’s Investors Service has remained stable with
A1 in the long-term and Prime 1 in the short-term area in the reporting year. The position of Kommunalkredit
Austria AG was strengthened by the upgrading of the Moody’s Ratings from A1 to Aa3.
The Bank Financial Strength Rating for Investkredit was fixed with C- for Investkredit and C+ for
Kommunalkredit.
SOCIAL AND ENVIRONMENTAL REPORT.
Creation of
additional jobs
STAFF. The dynamic business development is also reflected in the number of staff members. On
31 December 2001 320 employees (disregarding the Board of Management and maternity leave)
belonged to the staff of the Investkredit Group. The proportion of female employees is 53% and that
of part-time staff with contracts covering between 50% and 90% of normal working hours is 14% or
44 persons. In terms of normal working hours, this represents a staff of 305, in comparison to 278 in
the year before. The average age of employees in the Investkredit Group is just under 37. The Investkredit
Group is known for stable long-term employment relationships. Internationalisation and
more complex needs concerning financial services require innovative power and capability of
development of the staff. In 2001 the employees participated in numerous external technical and
management seminars at home and abroad. Staff members from all business segments of Investkredit
have given lectures at domestic and foreign technical events, seminars and conferences, some employees
have worked as lecturers at universities and technical colleges. In the reporting year internal
closed meetings and workshops were partly organised with the support of external systemically oriented
organisational consultants. A wide range of projects, e.g. in the fields of product development,
19

THE BANK FOR CORPORATES
Management discussion
Taking over
social responsibility
information technology and communication, make working for the Investkredit Group attractive. This
may also be the reason for the minimal fluctuation within the Investkredit Group.
SPONSORING. The Investkredit specialist banking group accepts its social responsibility. In the reporting
year Investkredit Bank AG supported selected projects of more than 50 well-known institutions
mainly in the social area. Furthermore, the art projects “Artists and Refugees“ of the Susret
Association and the Association “Friends of the House of Artists in Gugging“ were also sponsored. The
total sum of financial aid provided for social activities by the Investkredit Group amounted to more than
EUR 100,000. In the field of environmental management Kommunalkredit voluntarily fulfils the
obligation of continuous improvement concerning environmental protection (chiefly concerning business
trips, the consumption of paper and energy as well as product ecology). In November the
KOMMUNALIS prize, Kommunalkredit’s social prize for local authorities, was awarded at an evening gala.
OUTLOOK FOR 2002.
Cyclical upswing and
stable medium-term
perspectives expected in
lending business
MARKET DEVELOPMENT. According to all available indicators the economic slump in Austria will
persist through the second quarter of 2002. Then economic researchers expect an upswing allowing
for real growth rates of about +3% by the end of the year. With 1.2% of the GDP, however, the
annual average of the growth rate is not expected to be significantly higher than in 2001 according to
the time pattern. Essential incentives are to be provided by the recovery of the US economy and by
easing the pressure on households and corporates due to the decline in energy prices. The business
situation of the Austrian manufacturing industry is expected to improve considerably in the second
half of the year. Due to significantly declining commodity prices (-7.0%) real production will expand
only by about 1.5% on an annual average similar to 2001. Not before the year 2003, however, is a
continued recovery of the industrial sector expected
and only if foreign demand increases
again (+7.3% real exports), which would push
production output to real +5.0%, thus higher
than in the late 1990s. In view of these business
expectations, a moderate development of
the credit business is expected in the short term.
With the predicted cyclical upswing for the second
half of 2002, Investkredit expects a recovery
in the area of investments. Low financing
costs and the relatively lower self-financing ratio
of corporates favour loan financings. Against
the background of the EU enlargement and the
increasing globalisation, significant modernisation
and rationalisation requirements still need
to be met by business sector. According to the
latest WIFO (Austrian Institute of Economic
Research) investment survey, companies
report plans for investments amounting to
EUR 7.31 bn for the whole year. The test shows
that there will be increases especially in the car
industry, the production of non-durable consumer
goods and in the coal, iron and steel sector,
with a value of 6.2% the investment ratio
might again reach the level of 2000, an economic
boom year.
“The more
man is
planning,
the harder
he will
be hit by
coincidence.“
20
FRIEDRICH DÜRRENMATT

Ensuring liquidity for
corporate customers
in connection with
Basel II
Management discussion
On the whole, Investkredit enjoys a favourable financing environment. However, a higher order
intake level contrasts with higher credit risk costs. This is due to downgrading by rating agencies for
to economic reasons and higher risk premiums. The trend of corporates towards medium- to longterm
protection of liquidity will continue in the current year. Two factors illustrate this assessment: On
the one hand, there is some uncertainty among businesses in connection with the policy approach
that will be taken by major banks. On the other hand, by anticipating Basel II provisions changes in
the financing culture will lead to a reassessment of the aspect “security in financing“. As a specialist
bank for corporates, Investkredit is well prepared to deal with these developments in the financial
markets in an adequate way. Investkredit regards it as part of its mission to take the macroeconomic
implications of financing into consideration and promotes a more relaxed approach and cultural
awareness of the issue.
THE BANK FOR CORPORATES
Positive order situation
for the Investkredit Group
The volume of loans already under contract, internal approvals and currently being processed results
in a payment potential of more than EUR 600 m in the corporate segment as of 31 December 2001.
In the local government segment, the order situation is also regarded as positive for the year 2002,
since the financing requirements of local governments in Austria and in the adjoining states can be
considered stable. In the real-estate area, more than 20 potential investments in Central and Eastern
Europe are being evaluated.
Further growth of
volume and earnings
as a target
OUTLOOK. Continuing its business strategy, Investkredit plans to achieve additional increases in
the business volume. The balance sheet total is targeted to increase annually by some EUR 1 to 2 bn
within the next three years. This growth and the further improvement of margins – particularly in
business with domestic corporates – is expected to result in a double-digit rise of net interest income.
Investments in regional expansion and securities competence in the field of corporate bonds are to be
utilised for developing the market position and for increasing results in the corporate segment. In the
local government and real-estate areas, investments in Central and Eastern Europe are to be continued,
the Europolis Group intends to develop its position as one of the most important real-estate investors
in Central and Eastern Europe together with the EBRD. Earnings per share are expected to rise again
and attain more than EUR 4.00 in 2002. Further aims are to achieve a sustained increase in the return
on equity. An expansion of the existing business segments, coupled with a continued focus on specialisation
is expected to contribute to an improvement of the cost-income ratio to less than 40% by the
year 2004.
21

THE BANK FOR CORPORATES
Corporates
SEGMENT REPORTING ACCORDING TO IAS.
CORPORATES.
Services offered by
Investkredit to
optimise the
capital structures
of corporates
In its capacity as a modern investment bank, Investkredit offers its corporate customers all the products
which contribute to an optimisation of the capital structure. Depending on the strategic
situation of a company and taking account of the new Basel capital adequacy requirements for banks
(“Basel II“), the best suited financing instruments are selected.
The consistent alignment of Investkredit’s fields of business with the requirements of corporates’
capital structure management is illustrated in the following diagram of a corporate balance sheet.
Business fields are aligned with the corporate balance sheet pattern
ASSETS
LIABILITIES
Intangible and
tangible assets
Own funds
Financial
investments
Other equity-like
liabilities
Equity financing
Investments
Current assets
Long-term outside funds
Mezzanine financing
Short-term outside funds
Derivatives
Loan financing
Corporate bonds
Treasury products
Major emphasis is still attached to long-term external financing intended to support investments.
In this context, the main objective is to fix a maturity profile which is in line with the earnings and
investment dynamics of the relevant corporate and to use derivative instruments (treasury products)
to optimise interest rate and currency risks. Corporate bonds provide larger corporates with a
solid base of bullet-maturity outside capital and at the same time offer the possibility of extending the
group of debtors beyond the hitherto targeted banking community.
Wherever classic external financing schemes reach their risk limits, subordinated capital instruments
(mezzanine financing) come in useful. In certain situations connected with the sale or purchase of a
corporate or with a more rapid technology-related growth, equity financing through pre-market
risk capital instruments (venture capital and private equity) constitutes an ideal solution.
Even though most financing products have an impact on the liabilities side of the corporate balance
sheet, Investkredit also offers a selection of Investkredit investment funds for long-term investment
themes appearing on the assets side of the balance sheet which is especially geared to corporates’
requirements.
The following explanations contain more detailed information on the major fields of business within
the core segment “Corporates“.
22

A euro financial market
is emerging
CORPORATE LENDING.
DEVELOPMENT OF THE FINANCIAL MARKET. Europe bears witness to the birth of a euro financial
market, for which capital-market oriented rules are becoming increasingly important. This involves a
re-orientation of the credit-based financing tradition. On the one hand, the classic loan – the
core service of Investkredit Bank AG – plays a prominent role in corporate financing, on the other
hand, financing instruments such as private equity, mezzanine financing and corporate bonds are
gaining significance.
Corporates
THE BANK FOR CORPORATES
Corporate bonds are
gaining significance
The future of loan
financing
In March 2001, Investkredit was the lead manager in charge of the issuance of corporate bonds of SPAR
Österreichische Warenhandels AG launched with a volume of EUR 200 m. In addition, the bank was also
represented in the issuing group for the corporate bond of BBAG – Österreichische Brau-Beteiligungs-
Aktiengesellschaft. Investkredit received further mandates to prepare the launch of corporate bonds
which will be issued in the current year, such as the Egger bond with a volume of EUR 100 m. These
mandates have made the Bank for Corporates one of the leading banking partners for corporate
bonds in Austria. With respect to this instrument, cross-departmental collaboration – particularly with
the Capital Markets Team of the Treasury Department – is of vital importance. Especially in its capacity as
specialist bank, Investkredit regards the further development of loan financing as a great task and
challenge. According to the customers of Investkredit continuity and predictability are pivotal features
of any external financing transaction which are realised by means of medium- and long-term loan
agreements.
The bank for
family businesses
Basel II
Austrian medium-sized corporates, which in most cases are family businesses, show a stable
demand for long-term bank loans. In view of their preference for independent decision-making structures
– which are not influenced by the stock markets – loans are particularly well suited to meet their
requirements. Another factor is the high level of trust they place in their financing banks and the lack
of disclosure requirements to the wide-spread publicity. However, the ongoing orientation towards a
capital market approach regarding the pricing of loans, is encouraging a more open disclosure
practice of corporates vis-à-vis their banks.
As regards the level of credit margins, an increasing
differentiation according to corporates’
credit ratings and agreed collateralisation is
being observed. Bank-internal and external
ratings are gaining importance. Within the
whole euro area, credit margins will converge
along the risk profiles.
In the run-up to the introduction of the new
capital adequacy requirements for banks
(Basel II), bringing the credit ratings of corporates
in line with the ratings of large international
rating agencies (e.g. Moody’s Investors
Service and Standard & Poor’s) has already become
a standard procedure followed by Investkredit.
“A bank
lives on the
bad business
it avoids.“
Investkredit rating
The discussion of ratings is a major component
of the talks with our customers. The
departure point for the rating process of Investkredit
is the credit quality of the balance sheet,
which is determined on the basis of balance
sheet ratios. Qualitative factors such as inno-
HERMANN JOSEF ABS
23

THE BANK FOR CORPORATES
Corporates
Dealing with
corporates’ concerns
vative power and management help to ascertain the customer’s credit standing. The discussion of
corporates’ self-assessment and their external assessment lends a new quality to customer relations.
The spectrum of issues handled by Investkredit’s customer service officers is becoming more and more
sophisticated. Long-term, open partnerships with customers provide the basis to discuss forwardlooking
issues of corporate financing from a variety of perspectives at an early stage.
Investkredit’s specialised publications, which support the know-how management of customers
and employees alike, clearly illustrate the preparations made to address corporates’ concerns. In the
year under review, Investkredit published the following financial information brochures:
New publications
Interest-rate and currency management instruments – a financial information brochure provided
by the Bank for Corporates
The future of corporate financing in the euro area
Securities financing for corporates – a vademecum for the bond market
The business administration, management and technology experts as well as the lawyers at Investkredit
are currently devising financing solutions which go beyond the bank’s day-to-day business. The structuring
of financing is of major importance for the implementation of business projects. In this respect,
clear responsibilities within the bank and fast decision-making procedures are among the factors
underlying the success of Investkredit.
In the year under review, various suggestions and ideas of our customers stimulated Investkredit to
organise INVEST Workshops on the following topics:
Workshops organised
in the year under review
“Aid schemes for corporates in Upper Austria and Salzburg. Innovation – co-operation –
projects“
“Loans with treasury elements“
“Change in ownership – a strategic approach for corporates“
“Corporate pension schemes“
“The future of corporate financing in the euro area. Markets – instruments – recommendations“
Financing transactions with corporates
Annual 1997 1998 1999 2000 2001 to 2001 (cumulative
from 1957)
Financing (in EUR m) 415 308 500 553 720 9,663
Investments (in EUR m) 1,135 1,090 1,323 2,296 7,706 39,936
Financing:
facts & figures
In 2001, Investkredit contracted EUR 720 m of financial loans. In the important area of capital investment
financing, a volume of EUR 7.7 bn (see table “Financing transactions with corporates“) was cofinanced
by Investkredit in 2001. The average amount of loans in 2001 was EUR 3.2 m, which was
considerably higher than the average for 2000 (EUR 2.9 m). Maturity at 9.6 years has decreased on
average from 2000 (10.1 years).
Investkredit as a
financier for industry
Investkredit’s importance as a financing partner for industrial corporates becomes visible in the
fact that 47% of the bank’s new financing transactions concluded in 2001 were accounted for by
industrial corporates. The sectors of industry that received the largest share of financing in the year
2001 were the petroleum and chemical engineering industries, the non-metal mineral products industry,
the ceramics and glass industries, and the electrical engineering industry.
24

Deal structuring
in the context of
project financing
transactions
The trend towards large-volume financing transactions with industrial corporates was continued in
the reporting year. Against the background of portfolio control by banks, the syndicated financing
business has grown in significance. In the future, Investkredit will extend its function in underwriting
partnerships, as shown today in the strong increase investment volumes.
2001 saw an increase in the level of project financing transactions. Starting out from the establishment
of independent companies these types of loans are serviced out of the relevant project’s sources
of earnings. The bank’s tasks in relation to structuring such deals range from the legal planning of the
transaction to economic feasibility studies and ongoing project controlling. These models are mainly
applied to real-estate transactions and public-private partnerships.
Corporates
THE BANK FOR CORPORATES
Credit rating and
collateralisation
determine loan terms
The arrangement of loan terms depends on specific credit ratings and the provision of security.
While liquidity is agreed on a long-term basis, the interest rate adjustment is in many cases related to
covenants, i.e. the credit margin is developing according to the relevant corporate’s rating. The settlement
of margins is thus linked to the dynamism of the corporate’s economic development. In many
cases the corporates have anticipated the interest rate cuts of the European Central Bank and have
taken out variable-interest loans. In contrast, towards the end of the year, an increased interest in
fixed-rate loans was seen.
Prudent loan
management
The cyclical downturn in the second half of 2001 has also contributed to the fact that Investkredit
paid special attention to its loan management. In individual cases it became necessary to increase
collaterals. The importance of a contractual safeguarding of liquidity is pointed out in detail when
talking to our customers. In accordance with the accounting and valuation principles, the required
level of individual value adjustments has increased along the cyclical curve.
The following table shows the regional breakdown of the lending business in the reporting year and
cumulated since 1957.
Regional breakdown of financing transactions with corporates
Regions Financing 2001 Financing 1957 – 2001
in EUR m Share in EUR m Share
Vienna 163 23 % 2,446 25 %
Lower Austria 62 9 % 1,619 17 %
Upper Austria 46 6 % 1.394 14 %
Styria 26 4 % 856 9 %
Tyrol 76 10 % 825 9 %
Salzburg 23 3 % 485 5 %
Carinthia 6 1 % 421 4 %
Vorarlberg 40 6 % 407 4 %
Burgenland 2 0 % 45 1 %
Total – Austria 444 62 % 8,498 88 %
Europe 86 12 % 427 4 %
Rest of world 190 26 % 738 8 %
Total – international business 276 38 % 1,165 12 %
Grand total 720 100 % 9,663 100 %
In the year under review, Vienna, Tyrol and Lower Austria had the largest share of financing. In terms
of cumulative regional financing, Vienna, Lower Austria and Upper Austria are still in the lead.
25

THE BANK FOR CORPORATES
Corporates
Extended core
market
As much as 38% of the financing transactions concluded in 2001 with a volume of EUR 720 m were
accounted for by corporates which have their domicile outside of Austria. In the previous year, the
figure was 20%. This analysis reflects the increasing internationalisation of the financing business.
Large-scale loans for corporates with their domicile in Central and Eastern European countries
are extended especially for real-estate projects.
Regional focus
being expanded
The increasing importance of European financing transactions reflects the active internationalisation
strategy of Austrian corporates. Following this trend, Investkredit has also expanded its regional focus
and is currently active in the core markets of Austria, Germany, the Czech Republic and Poland
as well as in other Central European candidate countries. In addition to the regional expansion of
its core market, Investkredit also considers it part of its mission to support Austrian corporates in their
internationalisation activities.
Offices in Prague,
Warsaw and Frankfurt
EUROPEAN OFFICES. In April 2001, Investkredit opened a representative office in Prague. The
motivating factors for entering the Czech Republic were the favourable economic conditions on the
one hand, and the successful real-estate activities
of the Europolis Invest Group in Prague on the other
hand. The establishment of the Prague office will
not only ensure a better servicing of Austrian customers
in the Czech Republic but also promote
the bank’s direct business in the sphere of corporate
and real-estate financing. The target group for
corporate financing transactions include both Austrian
corporates with existing and/or projected local
offices or participating interests in companies
in the Czech Republic, and Czech corporates with
a good credit standing, an appropriate market share
and a convincing business policy. Currently preparations
are underway to open a representative
office in Warsaw in the second quarter of 2002.
“If you would
know the value
of money, go
and try to
borrow some.“
In January 2002, Investkredit opened a branch
office in Frankfurt, the “city of the euro“. The German
market has acquired special significance mainly
because of its size and because of the strong economic
links with Austria and Austrian corporates.
Among other things, the Frankfurt office supports
Investkredit’s Austrian customers in their activities
in Germany and offers the whole spectrum of BENJAMIN FRANKLIN
Investkredit services to German medium-sized
corporates. Another focal element are syndicated
financing operations. The regional focus in the medium- to long-term lending business is primarily on
Baden-Württemberg and Hessen followed by Niedersachsen, Nordrhein-Westfalen and Bavaria.
Second-largest
ERP trust bank
AID MANAGEMENT. Aid management from application to final settlement continues to be a special
task of the bank. Aid-related financing today mostly concentrates on ERP trust and guarantee loans.
In the year under review, Investkredit was the second-largest ERP trust bank in terms of ERP total
lendings, ranking only slightly behind the market leader. Great emphasis was also attached to the
financing of research projects, which are supported by the Austrian Industrial Research Fund (FFF). The
re-organisation of the Austrian aid system in the Structural Fund period up to 2006 is characterised
26

Competent consulting
on aid-related
financing transactions
Corporates
by a shift in aid-related decisions towards the regional level. Co-financing with resources of the European
Structural Funds is mainly granted in the form of direct subsidies. Loans at favourable interest
rates thus become less significant as a financing instrument. Against this background, the increase in
the level of aid-related financing transactions reflects the core competence of the bank. In
2001, the contracted volume amounted to EUR 90 m compared with EUR 50 m in the previous year.
The ongoing updating of our “EU-Förderdatenbank“ online service (www.investkredit.at) forms an
essential basis for knowledge management in the field of aid-related financing.
THE BANK FOR CORPORATES
Co-operation with
EIB and KfW
At the European level, co-operation with the European Investment Bank (EIB) in Luxembourg was
continued in the context of the global loan. The second global loan for investment projects of smalland
medium-sized corporates, environmental protection projects and energy investments in the amount
of EUR 36.3 m was fully used in the year under review. Preparations for a third global loan are at
an advanced planning stage and the signing of the contract may be expected for the first quarter of
2002. The co-operation with the Frankfurt-based KfW – the largest development bank in Germany –
was successfully continued in 2001. The co-operation includes the refinancing of investment projects
of medium-sized corporates in Austria, Slovenia, Hungary, Slovakia and the Czech Republic.
Consulting on
European aid
programmes
EUROTECH MANAGEMENT. Investkredit’s wholly-owned consulting subsidiary ETech Management
(EuroTech Management) focuses on helping Austrian corporates to gain access to research and
technology support programmes under the 6th EU Framework Programme (running until 2006).
Compared to the 5th EU Framework Programme still in effect until the end of 2002, the budget of
this future programme is to be increased by 17% to EUR 17.5 bn. With its team of technical industry
specialists EuroTech offers a broad spectrum of consulting services concerning the eligibility for support
funds for research and technology projects. The services include the preparation (selection of the
appropriate support programme and tender date), the analysis and structuring of the project in terms
of form and contents and the ongoing project controlling and EU-wide search for partners.
In connection with its competence in relation to European support programmes, EuroTech won a
tender of the Federal Ministry of Social Security and Generational Matters (BMSG) in 2001 and was
charged with the management of the EU youth programme for the programme period from February
2001 to December 2006. An experienced team of experts in juvenile matters and support issues will
manage this EU programme under the title “Nationalagentur Jugend“ jointly with the competent
regional authorities of the Federal Provinces. The EU youth programme was allocated support funds
of about EUR 1.63 m per year, which will be used to finance about 350 projects.
Investments in asset
backed securities
INTERNATIONAL BUSINESS. The focus of international business lay on markets which go beyond
the bank’s extended core market, with special emphasis being attached to security transactions in the
US. In the context of this business policy the bank is investing in a prudently managed and broadly
diversified portfolio of asset backed securities (ABS), thereby concentrating on low-risk, high-rated
tranches, whose structure ensures a lower rating volatility than more subordinated tranches. Compared
with the bank’s overall volume of ABS, only 1.6% of the ABS tranches held by Investkredit have
received a lower rating in the financial year ended on 31 December 2001. Against the background of
the migration matrix published by the rating agencies, this figure illustrates the excellent rating stability
of high-rated ABS tranches and also underlines the good quality of the invested ABS portfolio. This
quality was also maintained by investments effected in the last year, with special attention being paid
to ensuring a regional balance and spreading the investments in different ABS sub-markets. In order
to control return and to achieve portfolio effects in international risk business, unstructured transactions
with a higher risk profile are also concluded. However, the share of sub-investment-grade transactions
concluded in 2001 only amounted to 1.5% of the overall expansion in this field of business.
27

THE BANK FOR CORPORATES
Corporates
Financing in the corporate segment
Domestic, without aid Domestic, with aid International business Total
in EUR m 2001 2000 Change 2001 2000 Change 2001 2000 Change 2001 2000 Change
Loans 1) 1,673 1,745 -4 % 756 749 +1 % 1,113 932 +19 % 3,542 3,426 +3 %
Securities
financing 2) 332 196 +69 % - - 1,279 952 +34 % 1,611 1,148 +40 %
Total
financing 2,005 1,941 +3 % 756 749 +1 % 2,392 1,884 +27 % 5,153 4,574 +13 %
1)
Loans and advances to customers, trust loans and provision for guarantees
2)
Bonds and other fixed-income securities of other non-bank issuers
13% increase in
corporate financing
transactions
The table shows the structure of the overall level of financing in the corporate segment. In the reporting
year, the overall volume of financing transactions increased by 13%. Loan financing transactions
– including corporate financing, real-estate financing, and project financing – rose by 3% to EUR 3.5 bn.
A particularly impressive growth of 40% was observed in security financing. Especially the 69% increase
of domestic transactions reflects the growing demand for corporate bonds. For the first time in years,
aid-related financing transactions did not record a decrease in 2001.
CORPORATE FINANCE, PRIVATE EQUITY AND CONSULTING.
Corporate
finance services
for a growing
market
CORPORATE FINANCE. In the wake of the rapidly progressing globalisation, Investkredit’s mediumsized
customers are faced with an accelerated structural change. In this context, the appearance
of new international competitors and the loss of market niches represent the major challenges. This
altered market environment goes hand in hand with a clear increase in M&A activities – a trend which
is promoted by the requirement for medium-sized corporates to reach a certain size in order to be
competitive. Large corporates are thus called upon to focus their resources, which results in a rising
number of spin-offs. Moreover, numerous entrepreneurial pioneers of the reconstruction period of
the 1950s and 1960s are currently confronted with the task of finding successors. Investkredit has
reacted to this market environment already at an early stage and has systematically developed its
corporate finance segment in the last few years. Investkredit has many years of experience in the
structuring of complex financing transactions and develops feasible financing concepts supporting
corporates right from the beginning in setting out their course for the future, specifically in the context
of the acquisitions, MBOs/MBIs and disinvestments.
Systematic expansion
of instruments
The set of corporate finance instruments includes both M&A consulting, which is provided by Europa
Consult GmbH, and all financing tools required for the implementation of M&A and growth projects.
This enabled Investkredit
to establish
itself as an overall
provider of corporate
finance
“It is better to be
services and to be
counted among
the leading providers
of private
approximately right
equity/venture
than precisely wrong.“
capital and mezzanine
capital in
Austria. The bank
JOHN VON NEUMANN
28

Assistance in the
acquisition and
disposal of corporates
Corporates
now aims at further extending these instruments with a focus on quality. For the future, it is planned
gradually to expand the regional concentration on the extended European core market.
EUROPA CONSULT. Europa Consult GmbH saw higher demand for corporate finance services among
medium-sized companies. Europa Consult is a wholly-owned subsidiary of Investkredit, which specialises
in consulting on M&A transactions. In the year under review, the company had advisory mandates
in all fields of business, from the acquisition and disposal of corporates to the solution of the
problems of finding successors to family businesses and the structuring of financing transactions.
In 2001, a total number of 19 projects were supported. The customers of Europa Consult
include typical medium-sized companies as well as public sector entities seeking advice in relation to
privatisation projects. Europa Consult is becoming increasingly successful at winning business in to
large-scale transactions, for which attractive performance fees may be negotiated. This serves as
impressive proof that the company has been able to strengthen its position and now enjoys an excellent
reputation in its relevant market environment. In the near future, Europa Consult’s strategic focus
will also be on a well-targeted extension of its management buy-out activities, which provide
an ideal field to demonstrate the company’s know-how in the structuring of financing transactions.
THE BANK FOR CORPORATES
Difficult market
conditions for private
equity/venture capital
INVEST EQUITY GROUP. The INVEST EQUITY Group consists of venture capital and private equity
companies with international investors and an Austrian investment focus. The group is one of the
three largest independent market players in this field. INVEST EQUITY acquires stakes in companies
that are not listed on the stock market and provides them with risk capital. Specialist teams cover a
broad investment spectrum ranging from knowledge-based early stage enterprises to spin-offs of
groups in the traditional sphere of industry. On the whole, INVEST EQUITY has in many important
respects strengthened its position in Austria despite the difficult conditions on the capital market.
Thus, the early stage team is now fully integrated. In the year under review, the INVEST EQUITY Early
Stage Fund acquired stakes in two life-science companies and hence successfully documented its
future emphasis. Furthermore, with KfW, Frankfurt, the Group was able to gain a renowned investor
for the endowment of a parallel investment fund complementing the funds managed by INVEST
EQUITY Beteiligungs-AG.
Market position
strengthened with
10 transactions in
2001
In the reporting year, the Group has effected three investments and seven subsequent financings.
Taking over the Austrian market leader in rotary printing in December 2001 not only raised the number
of portfolio corporates to 15 but also completed the transaction spectrum from high-tech growth
financings to spin-offs of consolidated subsidiaries and privatisations. The year under review was
characterised by heavy drops in the European stock markets which mainly affected information and
communication technology issues and new economy corporates. The resulting stagnation in new
issues thus had a strong impact on the venture capital industry and led to a prolongation of the
targeted and realisable market introductory phases. A significant easing of the tension may not be
expected in the next two quarters. In consequence, 2001 recorded a considerable decrease in the
volumes of new investments in venture-capital funds. However, the backlog in demand with respect
to venture-capital instruments, which still exists in Europe, gives reason to expect a considerable rise
in the inflow of funds from venture capitalists as mid-2002.
Pioneer in the field of
mezzanine financing
INVEST MEZZANIN. With a volume of EUR 40 m INVEST MEZZANIN is the first fund for mezzanine
capital in Austria. This innovative financing instrument offers Austrian corporates access to a form of
financing that has proved itself over many years at the international level. It is chiefly regarded as
subordinated debt and assumes equity-like functions (equity mezzanine capital). Mezzanine capital
has a higher risk than loans but is serviced before equity and thus occupies an intermediate position
between equity and borrowing in the financing structure. In the reporting year 2001, three investments
amounting to more than EUR 6.3 m were realised, so that the portfolio now comprises
eight corporates. With the exception of one fraud-related default, the investments generate potential
29

THE BANK FOR CORPORATES
Corporates
increases in values and current interest income. On the whole, the environment for growth companies
developed rather unfavourably in 2001, which altogether resulted in a more risk-sensitive and selective
investment policy. The strategic focus will be increasingly shifted towards corporates with stable
earnings which have already reached a more advanced stage in their corporate development.
INVEST MEZZANIN expects that the further development of the mezzanine market will be
positively influenced by the growing number of management-buy-out/management-buy-in transactions
and by more risk-adequate lending policies of banks.
ASSET MANAGEMENT.
Selected Investkredit
investment funds
for corporates
INVESTKREDIT INVESTMENT FUNDS. In order to meet the asset management requirements of its
corporate customers, Investkredit offers a selection of various Investkredit investment funds. Investment
funds suited for corporate pension schemes and low-risk floor funds clearly prove that
Investkredit’s asset management policy is tailored to corporates’ specific needs. The performance of
the Investkredit investment funds was clearly influenced by the fact that all major stock markets
ended the year with severe losses. While the floor funds were able to maintain their ground with
positive returns, among the mixed funds only the i2V-Vorsorgefonds, managed by Vontobel Asset
Management, ended the year 2001 on a positive note. The i2V-Euro and the i2V-Select were more
strongly affected by the negative development of the stock markets und thus had to accept slight losses.
Decline in fund
volumes
The unfavourable situation on the stock markets also had an impact on the sale of investment funds.
As a result of buybacks, the total volume of Investkredit investment funds dropped from about
EUR 250 m as at the end of 2000 to EUR 190 m at the end of 2001. This fall was mainly attributable
to the floor funds i2F and i2-bond. Especially the i2F with its short-term orientation lost a great
number of investors who switched to more attractive money market investments. All mixed funds, on
the other hand, recorded an increase which totalled about EUR 9 m.
With the issue of two umbrella floor funds in the beginning of 2002, Investkredit will react to
the declining trend in this field of business. The fund of funds approach is intended to reduce the
dependence on a single fund manager and his or her performance and the related diversification in
hedging styles is to enhance continuity.
Considerable
increase in time
deposits
TIME DEPOSITS. Deposits of corporate customers are mainly taken in via Investkredit International
Bank p.l.c., Malta. This field of business was significantly extended in the previous year. With EUR 364 m
the volume of deposits of Austrian corporate customers accepted in 2001 could be nearly doubled
compared to the year before.
Investkredit International Bank p.l.c. in Malta had an excellent track record in 2001. With a
capital base of EUR 29 m it reported a profit of EUR 3.7 m. Even before the end of the year the bank
in Malta was able to enlarge its number of shareholders by two new (preference) shareholders and to
increase its share capital to EUR 46 m. The bank’s asset operations focus on extending loans to Austrian
corporate customers and on participating in international syndicated securities financing transactions.
The aforementioned injection of fresh capital will be used to increase the bank’s commitment in these
fields of business.
Growing importance
of securities investment
for corporate customers
CUSTODY ACCOUNTS SERVICES. In the year 2001, the financial asset management requirements
of corporate customers were clearly influenced by the volatile market conditions. In consequence,
demand for investments involving a lower risk was stronger than in the year before. The focal
products of the year under review were investments and portfolio switching of funds to selected
bonds and investment funds with low risk profiles. At a total of EUR 2.9 bn, the volume of assets
30

Corporates
under management decreased over the year 2000, while the number of customers holding a
securities account with Investkredit rose by about 4%.
TREASURY.
THE BANK FOR CORPORATES
Issuing focus on
strengthening equity
structure
“When the experts are
agreed, the opposite
cannot be held to be
certain.“
BERTRAND RUSSELL
REFINANCING. In 2001, long-term measures were implemented only in the first half of the year. The
refinancing transactions planned for the second half of 2001 were postponed to the beginning of
2002 as a result of the political events in the wake of 11 September and their significant impact on
the markets. Investkredit Bank AG floated a total of six issues. The largest transactions with a volume
of EUR 50 m each were one seven-year floating-rate FLORAX bond floated on the European capital
market and five-year index-linked notes. Investkredit’s issuing activities primarily focused on refinancing
transactions to strengthen the capital basis. For this
purpose, Investkredit floated three private placements
consisting of one EUR 20 m issue of a fifteen-year subordinated
bond and a EUR 30 m and EUR 15 m issue of twentyyear
supplementing capital bonds. In June, Investkredit International
Bank p.l.c. issued five-year floating-rate notes
with a volume of EUR 10 m on the Austrian capital market.
For the current year it is planned to establish a refinancing
facility of EUR 1.5 bn. Since it is generally believed that
in the first half of 2002 investors will commit their funds
preferentially to bonds, Investkredit is stepping up its refinancing
activities in the beginning of the year. In January
2002, Investkredit floated its hitherto largest bond issue with
a volume of USD 500 m and a five-year maturity on the international capital market under the lead
management of the Schroeder Salomon Smith Barney Group.
Volatile
environment
weakened income
from securities
SECURITIES MANAGEMENT. Securities management involves both own-account trading and the
construction of a medium- to long-term investment portfolio consisting mainly of asset backed securities.
In the year 2001 as well, Investkredit focused on the euro capital market and on the economic
area of the United States. Trading activities naturally concentrated on liquid bond markets and
shares from Western European countries. In 2001, the contributions to results were lower than in the
years before.
Market leader with
respect to interest
rate derivatives
INTEREST RATE AND CURRENCY MANAGEMENT. In the financial year 2001, the high volatility of
the financial markets provided the trading desks of banks and financial departments of corporates
with great opportunities, but also confronted them with increased risks. Investkredit’s treasury department
was able to hedge the bank’s risks arising from interest and exchange rate fluctuations and
achieved a positive trading result, which proved to be rather volatile in the course of the year in line
with the general market development. In the sphere of short-term money trading, the scenario of
falling interest rates contributed very favourably to the bank’s net interest income. Investkredit’s corporate
customers increasingly relied on the bank’s market expertise and special know-how regarding
the use of short- and long-term interest rate and currency management tools to implement
hedging and optimisation strategies. Investkredit’s leading position with respect to interest rate
derivatives and its market share of 27% (TOP 2000, Schwabe, Ley & Greiner) document the bank’s
competence in this market area. At the Alpbach Finance Symposium in October, Investkredit’s treasury
department participated in the interest and exchange rate forecast and presented optimisation
strategies for foreign currency funding of corporates at one of the special seminars held on this
occasion.
31

THE BANK FOR CORPORATES
Corporates
Implementation of
the InvestDirektFX
online foreign
exchange trading
system
In the foreign exchange field, Investkredit has been offering a new Internet service since spring 2001.
InvestDirektFX (www.investdirektfx.at) is an online foreign exchange trading system which Investkredit
customers may use to carry out online spot and forward exchange deals at current market
rates. In autumn 2001, the electronic hedging system for foreign currency risks was upgraded to a
24-hour service which now also includes Eastern European currencies. The conclusion of online
transactions is intended to complement the individual assistance offered by the bank’s treasury staff.
InvestDirekt, the
online account
service, was fully
implemented
InvestDirekt. The free online account service www.investdirekt.at enables Investkredit customers
to view their security accounts and all other accounts directly via the Internet. Current market values of
securities and derivatives and debit balances with interest deferrals are complemented by individual
information on turnover, maturities and performance. Investkredit’s major objective is to furnish customers
with high-quality information. InvestDirekt is already used by 12% of all Investkredit customers.
32

60% of Austrian
local authorities are
customers of
Kommunalkredit
LOCAL GOVERNMENTS.
Local governments
BUSINESS APPROACH. Kommunalkredit Austria AG, Austria’s only specialist bank for the public
sector, significantly enhanced its presence on the market in 2001. Today, more than 60% of
Austrian local authorities are customers of Kommunalkredit. In order to promote the development of
small and medium-sized local infrastructure projects, the European Investment Bank (EIB) in Luxembourg
has granted a first global loan to Kommunalkredit, with an increase being promised for 2002.
Kommunalkredit’s business operations are also affected by the plans of the Republic of Austria and of
individual Federal Provinces to resign from their function as lenders in order to optimise their budgets
and/or to reduce their Maastricht deficit and debt ratio.
THE BANK FOR CORPORATES
Strong growth due to
the purchase of
public sector
receivables
FINANCING. In 2001, Kommunalkredit among other things sold a number of loans of the Republic of
Austria and of the Environmental and Water Management Fund as well as several housing loans in
Carinthia and was able to achieve considerable premiums in these cases. The rise in domestic lendings
by more than EUR 1 bn or 49% (see table “Financing in the local government segment“)
mainly derives from this area. Further sales of loans were already announced for 2002.
Growth in Central
Europe with
strategic partner
Dexia
“It is not only for what we
do that we are held
responsible, but also for
what we do not do.“
MOLIÈRE
Similar developments – budget optimisation to accelerate structural reform processes – are likely to
occur in the Central European candidate countries. Kommunalkredit has been able to gain a firm
foothold in this market and has extended its exposure in 2001. The market is serviced jointly with
its co-owner Dexia Crédit Local (via Dexia Kommunalkredit Holding) or by Kommunalkredit alone
paving the way for the operations of the holding company. Kommunalkredit achieves stable earnings
in Slovakia (stake in Prvá Komunalná Banka) and in the Czech Republic (office in Prague) and has been
successful with several acquisitions in Poland, Hungary, Slovenia and Croatia. Hence, in 2002 Kommunalkredit
will increase its presence in these countries. Switzerland became Kommunalkredit’s
second “core market“ with respect to financing transactions with the public sector. Approximately
15% of all new transactions are concluded in Austria’s western neighbouring country. This trend
continued at the beginning of 2002. All in all, international
loans increased by EUR 300 m or 72% (see table “Financing
in the local government segment“).
In 2001, Kommunalkredit also succeeded in extending its
range of products, focusing more strongly on structured
financing transactions. A major break-through was achieved
in relation to the placement of special financing models: The
specialist bank was able to establish itself successfully in the
US lease business, and in its function as lead manager was
responsible for the structuring of the actual loan component
(“B-Loan“) of the world-wide largest US lease transaction of
the year. In the next few years, Kommunalkredit will strive
for the market leadership in Austria.
Unless there is an external rating, all Kommunalkredit customers are rated internally, with the bank’s
rating scheme modelled on the one used by international rating agencies. The internal rating process
and credit-risk-related data are already being adjusted to the requirements of Basel II both in conceptional
and in structural terms. The banking book risks are controlled and limited in the context of the
monthly meetings of the Asset Liability Committee (ALCO). The ALCO meeting constitutes the central
element of the risk management process and serves as a forum for providing information about
Kommunalkredit’s risk situation, for making all important risk-relevant decisions and for fixing and
monitoring the risk limits.
33

THE BANK FOR CORPORATES
Local governments
Financing in the local government segment
Austria Abroad Total
in EUR m 2001 2000 Change 2001 2000 Change 2001 2000 Change
Loans 1) 3,196 2,140 +49 % 716 416 +72 % 3,912 2,557 +53 %
Securities
financing 2) 123 48 +158 % 103 104 -1 % 225 151 +49 %
Total financing 3,319 2,188 +52 % 819 520 +57 % 4,137 2,708 +53 %
1)
Loans and advances to customers, trust loans and provision for guarantees
2)
Bonds and other fixed-income securities of other non-bank issuers
MANAGEMENT OF TRUST FUNDS. More than 3,000 of all the projects carried out by Kommunalkredit
within the scope of its trust funds management in the year 2001 (environmental aid programmes
of the Federal Government, support and development co-operation programmes for Eastern
European countries of the Federal Ministry for Foreign Affairs, “Wirtschaftsimpuls“ programme of
the Federal Province of Upper Austria) were deemed eligible for funding. The cash value of the funding
amounted to approximately EUR 498 m. Furthermore, Kommunalkredit engaged in consulting
services for several international clients. As at 31 December 2001, the Environmental and Water
Management Fund administered by Kommunalkredit reported a balance sheet total of EUR 2.97 bn.
Two new equity
investments
EQUITY INVESTMENTS. In 2000, Dexia Kommunalkredit Holding acquired a 78.4% stake in the
Slovakian Prvá Komunalná Banka (PKB) in Zilina. With 614 employees in a total of 47 branch offices,
PKB holds a share of 70% in the Slovakian market for local government financing. In 2001, the
balance sheet total rose from EUR 460 m to EUR 523 m and the profit for the year remained stable at
EUR 6.5 m. Kommunalkredit expects to contract additional new business from two subsidiaries which
were set up in 2001 and started their operations in 2002: With Kommunalleasing GmbH (a subsidiary
owned jointly with BAWAG PSK Leasing) Kommunalkredit was able to venture into the real-estate
leasing market, and its IT subsidiary TrendMind will offer the SAP bank controlling products, which
were successfully used within Kommunalkredit, also to other customers.
TREASURY. In 2001, Kommunalkredit raised an overall amount of about EUR 1.5 bn on the capital
market for the financing of local government projects. In this context, 16 issues were launched, of
which 14 were documented under the debt issuance programme, whose volume was increased to
EUR 5 m in 2001. For the year 2002, Kommunalkredit plans to achieve a refinancing volume of EUR 1.8 bn.
34

Benefiting from
advantages of
Central and Eastern
European growth
market
REAL ESTATE.
BUSINESS APPROACH. One area in which the concept of internationalisation has been widely implemented
is the real-estate segment which was considerably expanded in the last few years. This
area which constitutes the ideal field of business for a bank specialising in long-term operations
was turned into one of the Investkredit Group’s most important growth businesses owing to
the efforts of Europolis Invest, a real-estate management company owned by Investkredit, which
successfully combined its own real-estate developments with investments in fully rented top-class
commercial real estate located in the capitals of the EU candidate countries.
Real estate
THE BANK FOR CORPORATES
The Europolis Invest Group has specialised in three specific fields: real-estate investments, realestate
project development and real-estate portfolio management. The Group’s business focus
is on office properties and logistic properties. Since the central aim is to safeguard revenue in the long
term, the main factors in project selection are the quality of the buildings, the creditworthiness of the
tenants and the long-term contractual safeguarding of rentals. A profitable real-estate portfolio in
Vienna – including properties such as the Akademiehof Karlsplatz – served as launching pad for the
bank’s activities in the Central and Eastern European countries.
The existing real-estate portfolio outside of Austria comprises two office projects in Budapest,
called “City Gate“ and “Info Park Research Centre“, the “Hadovka Office Park“ and the “Technopark
Pekarska“ project as well as the “River City Prague“ urban development project in Prague and the
“Warsaw Towers“, “Saski Point“ and “Saski Crescent“ office buildings in Warsaw. The purchase of
the “Alliance Logistic Centre“ in the vicinity of Warsaw was the bank’s first acquisition in the field of
logistic properties.
Construction work on the “Danube House“ building in the context of the River City Prague project
was continued as planned in the year under review. The “Saski Point“ and “Alliance Logistic Centre“
buildings were acquired in the course of the reporting period. The contracts on the purchase of the
“Saski Crescent“ and “Technopark Pekarska“ projects were signed at the end of the year. The two
latter projects allowed the bank to implement its concept of so-called “forward deals“ for the first
time on a larger scale in the Central and Eastern European market. Forward deals are a mixture of
classic real-estate investments and development projects, with the investment being already effected
before the building is finished and let. Payment and purchase price depend on the completion of the
construction work and the quality of the tenancy agreements.
Financing in the real-estate segment
Austria Abroad Total
in EUR m 2001 2000 Change 2001 2000 Change 2001 2000 Change
Loans 1) 13 9 +47 % 4 5 -30 % 16 14 +19 %
Securities
financing 2) 42 -100 % - - 42 -100 %
Buildings 42 55 -23 % 199 45 +343 % 242 100 +142 %
Total financing 55 105 -48 % 203 50 +305 % 258 155 +66 %
1)
Loans and advances to customers, trust loans and provision for guarantees
2)
Bonds and other fixed-income securities of other non-bank issuers
EBRD as strategic partner
for real-estate projects
in Central and
Eastern Europe
In December 2001, the London-based European Bank for Reconstruction and Development (EBRD)
purchased a 35% stake in the Europolis Invest Group to participate in its successful Central European
expansion strategy. For this purpose, the EBRD committed EUR 105 m in equity capital, making
Europolis Invest one of the largest real-estate funds in the EU candidate countries. The hitherto largest
35

THE BANK FOR CORPORATES
Real estate
equity stake EBRD has acquired outside the financial sector provides the Europolis Group with
the opportunity to increase its investments from currently EUR 242 m to EUR 1 bn over a projected
period of five years. With the EBRD stake Investkredit has gained the international development bank,
which focuses particularly on Central Europe, as co-operation partner for its real-estate business and
has thus been able to build a European network in the real-estate sector. Investkredit Bank AG and
Europolis Invest consider the strategic participation of the EBRD as proof of the confidence and confirmation
of the strategy of real-estate investment in Central and Eastern Europe pursued for the past
four years.
“The difficulty lies
not in the new
ideas, but in
escaping the old
ones.“
Strengthened by this strategic participation the
Europolis Group will extend its successful realestate
activities to new markets, such as Romania,
Bulgaria, Croatia and the Baltic States.
The growing scale of the Europolis Group’s activities
in Prague required the establishment of a
management company, whose major tasks
consist in the management of the development
process, tenant services, re-letting of properties
and bookkeeping. For the next financial year, it is
planned to set up another management company
to take care of activities in Poland.
JOHN M. KEYNES
36

FINANCIAL STATEMENTS OF THE
INVESTKREDIT GROUP FOR 2001.
INCOME STATEMENT OF THE INVESTKREDIT GROUP.
Income statement
THE BANK FOR CORPORATES
INCOME STATEMENT 1.1. - 1.1. - CHANGE
IN EUR 1,000 NOTES 31.12.2001 31.12.2000 IN %
Interest and similar income 1,027,889 835,221 23 %
Interest and similar expenses -930,953 -758,773 23 %
Net interest income (18) 96,937 76,448 27 %
Fee and commission income 10,863 10,369 5 %
Fee and commission expenses -5,871 -4,511 30 %
Net fee and commission income (19) 4,992 5,857 -15 %
Net credit risk result (20) -8,537 -6,586 30 %
Trading result (21) 3,019 2,968 2 %
Net financial investments result (22) -22,024 -10,861 103 %
General administrative expenses (23) -43,875 -36,227 21 %
Other operating results (24) 3,292 770 327 %
Extraordinary result 0 0 -
Profit for the year before tax 33,804 32,369 4 %
Tax on income (25) -3,610 -2,193 65 %
Profit for the year after tax 30,194 30,176 0 %
Minority interests -7,062 -3,415 107 %
Net profit for the year 23,133 26,760 -14 %
1.1. - 1.1. - CHANGE
IN EUR 31.12.2001 31.12.2000 IN %
Earnings per share (27) 3.65 4.23 -14 %
The previous year‘s figure has been adjusted for the 1:10 share split. As of 31 December 2001 there were no exercisable conversion
or option rights in circulation. The undiluted earnings per share therefore correspond to the figures given.
37

THE BANK FOR CORPORATES
Balance sheet
BALANCE SHEET OF THE INVESTKREDIT GROUP.
ASSETS
CHANGE
IN EUR 1,000 NOTES 31.12.2001 31.12.2000 IN %
Cash and balances with central banks (28) 15,106 4,780 216 %
Loans and advances to banks (29) 887,105 661,866 34 %
Loans and advances to customers (30) 6,086,376 4,950,232 23 %
Risk provisions for loans and advances (7), (32) -69,049 -64,310 7 %
Trading assets (8), (33) 93,765 187,169 -50 %
Financial investments (34) 3,831,483 2,689,824 42 %
Property and equipment (36) 288,786 214,839 34 %
Other assets (38) 60,783 59,007 3 %
Total assets 11,194,354 8,703,408 29 %
LIABILITIES
CHANGE
IN EUR 1,000 NOTES 31.12.2001 31.12.2000 IN %
Amounts owed to banks (39) 2,810,094 2,357,201 19 %
Amounts owed to customers (40) 686,532 328,155 109 %
Debts evidenced by certificates (41) 6,453,065 5,139,159 26 %
Provisions (42) 44,591 40,675 10 %
Other liabilities (44) 517,421 324,429 59 %
Subordinated capital (45) 291,104 197,087 48 %
Minority interests 133,344 22,532 492 %
Equity (46) 258,203 294,168 -12 %
Total liabilities and equity 11,194,354 8,703,408 29 %
38

STATEMENT OF CHANGES IN EQUITY.
Statement of changes in equity
THE BANK FOR CORPORATES
CHANGE
IN EUR 1,000 31.12.2001 31.12.2000 2001
Subscribed capital 46,000 46,000 0
Capital reserve 61,047 61,047 0
Retained earnings 142,015 157,038 -14,219
Hedging reserve -7,662 8,842 -16,505
Net profit for the year 23,133 26,760 -3,628
Dividend paid by Investkredit Bank AG -6,330 -5,520 -810
Aggregate 258,203 294,168 -35,162
For explanations on changes in the equity, see notes (46)
39

THE BANK FOR CORPORATES
Cash flow statement
CASH FLOW STATEMENT.
40
IN EUR 1,000 2001 2000
Profit for the year (before minority interests) 30,194 30,176
Non-cash items included in profit for the year, and adjustments to
reconcile profit for the year to cash flows from operating activities
Depreciation/revaluation gains on property and equipment and financial investments 1,333 2,002
Transfer to/release of provisions and risk provisions for loans and advances 8,655 -10,606
Profit/loss from the disposal/valuation of financial assets, property and equipment 22,024 10,861
Other adjustments (net) -175,303 -72,977
Changes in assets and liabilities from operating activities after adjustments
for non-cash components
Loans and advances to banks -225,239 272,529
Loans and advances to customers -1,136,143 -1,080,389
Trading portfolio 93,404 -68,592
Currents assets -938,593 -707,079
Other assets from operating activities -1,776 -24,405
Amounts owed to banks 452,893 -62,533
Amounts owed to customers 358,377 -69,441
Debts evidenced by certificates 1,313,906 1,661,373
Other liabilities from operating activities 192,182 211,458
Interest and dividends received 1,027,370 835,221
Interest paid -930,433 -758,773
Extraordinary proceeds 0 0
Extraordinary payments 0 0
Income tax payments -4,820 -2,493
Cash flow from operating activities 88,030 166,333
Proceeds from the disposal of
Financial investments 86,307 335,844
Tangible and intangible fixed assets 732 7,873
Payments for the acquisition of
Financial investments -274,900 -411,316
Tangible and intangible fixed assets -76,656 -162,806
Currency translation adjustments -12,496 -1,586
Cash flow from investing activities -277,012 -231,991
Proceeds from capital increases 0 0
Dividend payments -5,520 -5,520
Changes in resource from other financing activities 94,016 6,843
Cash flow from financing activities 88,497 1,323
Cash holdings at the end of the previous period 4,780 69,367
Cash flow from operating activities 88,030 166,333
Cash flow from investing activities -277,012 -231,991
Cash flow from financing activities 88,497 1,323
Effects of 0 0
Exchange rate fluctuations 0 0
Changes in the group of consolidated enterprises 110,812 -252
Cash holding at the end of the period 15,106 4,780

Notes to the financial statements of the Investkredit Group.
ACCOUNTING PRINCIPLES.
Notes
THE BANK FOR CORPORATES
(1) GENERAL PRINCIPLES. The consolidated financial statements of Investkredit Bank AG (the Investkredit Group) were prepared on
the basis of the International Accounting Standards (IAS) adopted and published by the International Accounting Standards Board
(IASB). The statements qualify under the relevant legislation for exemption from the requirement to present a Group Financial
Statement according to Austrian commercial law. In its accounting, the Investkredit Group is guided in principle by all interpretations
adopted and published as at the balance sheet date by the Standing Interpretations Committee (SIC), even though they may not
enter into force until later. Accounts are presented according to uniform Group methods. The financial statements of the Investkredit
Group are based on the following relevant International Accounting Standards:
IAS 1 Presentation of Financial Statements
IAS 4 Depreciation Accounting
IAS 7 Cash flow Statements
IAS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies
IAS 10 Contingencies and Events After the Balance Sheet Date
IAS 12 Income Taxes
IAS 14 Segment Reporting
IAS 16 Property, Plant and Equipment
IAS 17 Accounting for Leases
IAS 18 Revenue
IAS 19 Employee Benefits
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 22 Business Combinations
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 27 Consolidated Financial Statements and Accounting for Investments in Subsidiaries
IAS 28 Accounting for Investments in Associates
IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions
IAS 32 Financial Instruments: Disclosures and Presentation
IAS 33 Earnings per Share
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 39 Financial Instruments: Recognition and Measurement
IAS 40 Investment Property
(2) CONSOLIDATED ENTERPRISES. A list of all enterprises included in the financial statements of the Investkredit Group is presented
under point 35 (Disclosure of equity investments). The group of fully consolidated related enterprises includes not only the parent
company Investkredit Bank AG (hereinafter referred to as “Investkredit“) but also 29 Austrian and foreign enterprises (as compared
with 21 in the previous year), the most important of which are Kommunalkredit Austria AG, Vienna (hereinafter referred to as
“Kommunalkredit“) and the Investkredit International Bank p.l.c., Sliema/Malta. In the financial year, the following 14 companies
were included for the first time:
41

THE BANK FOR CORPORATES
Notes
Acquisition cost in EUR m Investment
EUROPOLIS CE Beta Holding GmbH, Vienna 7.4 65 %
EUROPOLIS CE Gamma Holding GmbH, Vienna 0.0 65 %
Europolis E30 Holding Sp. z o.o., Warsaw 5.5 65 %
E30 Industrial Center I Sp. z o.o., Warsaw 3.0 65 %
E30 Industrial Center II Sp. z o.o., Warsaw 3.3 65 %
Europolis Invest Immobilien Management GmbH, Vienna 0.0 100 %
EUROPOLIS INVEST Management s.r.o., Prague 0.0 100 %
KA Beteiligungsholding GmbH, Vienna 88.0 100 %
RCP Alfa s.r.o., Prague 5.3 65 %
Europolis Saski Holding Sp. z o.o., Warsaw 13.5 65 %
Saski Park Sp. z o.o., Warsaw 14.4 65 %
VBV beta Anlagen Vermietung Gesellschaft mbH, Vienna 20.0 100 %
VBV Holding GmbH & Co Immobilien-Investitionen OHG, Vienna 0.0 100 %
VBV Holding GmbH & Co Immobilien-Vermietungen OHG, Vienna 1.7 100 %
In the financial year, the following 6 companies were no longer included in the group of fully consolidated enterprises due to mergers
with other fully consolidated enterprises:
Acquisition cost in EUR m Investment
Europolis Holding s.r.o., Prague 0.0 100 %
E.I.P. Beteiligungs Gesellschaft mbH, Vienna 4.1 100 %
Warsaw Tower Sp. z o.o., Warsaw 25.2 100 %
Europolis Invest Immobilieninvestitions Gesellschaft mbH, Vienna 23.7 100 %
RCP Beteiligungsverwaltungs-Gesellschaft mbH, Vienna 7.6 100 %
VBV fünf Anlagen Vermietung Gesellschaft mbH, Vienna 1.3 100 %
32 enterprises whose overall influence on the financial position of the Group is of minor significance only were not consolidated. The
total assets of these enterprises amount to less than 2.0% of the Group’s total assets. In the Investkredit Group’s financial statements,
10 associates (10 in the previous year) were accounted for under the equity method. In the financial year, no companies were
included for the first time. Nine investments in associates are accounted for at cost because of their overall minor significance.
(3) CONSOLIDATION PRINCIPLES. The consolidation action taken in the context of preparing the Group Financial Statements
includes capital consolidation, consolidation under the equity method, debt consolidation, the consolidation of expenses and income
and the elimination of intra-Group results. The fully consolidated enterprises present their annual financial statements uniformly as of
31 December. Capital consolidation is carried out at cost. In that process, the acquisition costs for investments in the Group company
are offset against the proportionate equity capital of the subsidiary at the time of acquisition. Intra-Group receivables, liabilities,
expenses and income as well as intra-Group profits are eliminated, unless they are of minor significance. Associates are accounted for
under the equity method and are reported under financial investments as investments in enterprises accounted for under the equity
method. Local financial statements are used for valuation under the equity method. Alignment with the uniform Group valuation
methods is undertaken only in the event of significant measurement differences in leasing business, but not otherwise. The annual
results of associates are taken from the latest annual financial statements available, allowing for current forecasting, so that changes
in equity are reflected in the same year. Dividends distributed are cancelled. Annual profits are shown in the income statement under
Other investment earnings.
(4) CURRENCY TRANSLATION. In the case of the euro-currencies, the exchange rates correspond to those published by the European
Commission on 31 December 1998. Assets and liabilities in other currencies (third currencies) are translated at the rate recommended
by the European Central Bank as at the balance sheet date (28 December 2001):
Currency AUD CAD CHF CZK DKK GBP HUF JPY NOK PLN SEK USD
Mid exchange 1.7280 1.4077 1.4829 31.962 7.4365 0.6085 245.18 115.33 7.9515 3.4953 9.3012 0.8813
rate
42

(5) LOANS AND ADVANCES. Loans and advances to banks and customers are entered at nominal value or at cost. Individual
valuation adjustments are made to take into account recognizable credit and sovereign risks. Valuation adjustments are not offset
against the corresponding loans and advances but are shown openly in the balance sheet. Premiums and discounts are distributed
over the maturity period of the debt and are entered under Other assets or Other liabilities.
(6) LEASING BUSINESS. Fixed assets serving for leasing purposes are classified as Finance leases and are entered in the consolidated
balance sheet in accordance with IAS 17 under the individual categories of receivables and at the present value of the discounted
leasing claims.
Notes
THE BANK FOR CORPORATES
(7) RISK PROVISIONS. Risk provisions cover impairment losses and reserves for all recognizable credit and sovereign risks. In its
credit risk management, Investkredit Group uses a financial standing assessment system and an internal rating procedure. Every
borrower is thus assigned an external or internal rating. Internal ratings correspond to the standard scale of Standard & Poor’s and
are made in several stages. The business development of all enterprises is continuously analysed and the credit risk is regularly
evaluated. That makes it possible to classify assets in the banking book and off-balancesheet business fully according to criteria of
soundness and collateralization. In the case of problematic positions, a special management team provides intensive support.
(8) TRADING ASSETS. Securities, derivative financial instruments and other items of the trading portfolio are reported at fair value
on the balance sheet date, according to IAS 39. In the case of listed products, the stock exchange price is taken as the fair value.
Unlisted products are measured by the present value method (present value of discounted future payment flows) or by the use of
suitable option price models (value resulting from the application of option price formulae according to the Garman-Kohlhagen,
Black-Scholes or the Hull-White models). All results under these items are reported in the Income statement under the Net trading
result. To measure the market risk, value at risk (VAR) is calculated according to a model based on a confidence level of 99% and a
holding period of 1 day. There are VAR limits for the interest rate risk, the share price risk and the currency risk. The standard
procedure is applied for the regulatory reporting system. Interest rate risks arising outside of trading activities are analysed continuously,
using the value at risk of the banking book and interest simulations.
(9) FINANCIAL INVESTMENTS. All fixed-interest and variable-yield securities, investments in unconsolidated subsidiaries and associates
and other investments not attributed to the trading book are entered in this item. The items are either ”held to maturity” or are
”available for sale”.
1. Held to maturity: Fixed-interest securities are valued at cost. If the cost differs from the repayment amount, the difference
is written back, affecting current results proportionately over time. If the credit standing of the security debtor indicates
a permanent impairment, the item is written off as necessary. Effects on current results are shown under the Net financial
investments result. Variable-yield securities are valued at the fair price. Significant associates are accounted for under the
equity method. Investments in unconsolidated subsidiaries as well as other investments are valued at cost. In the event of
permanent impairment, the relevant item is written down.
2. Available for sale: Securities that are attributed neither to fixed assets nor to the trading portfolio have the function of
liquidity reserve (available for sale) and are entered at the fair value on the balance sheet date. They are recorded in the
balance sheet under financial investments, and effects on results are shown in the Net financial investments result.
(10) DERIVATIVES. The fair value of derivatives is calculated according to recognized methods in every case. Derivatives are treated
differently according to their category, applying IAS 39:
1. Derivatives in the trading portfolio are recognized as trading assets or trading liabilities. If they show positive fair values,
including deferred interest (dirty price), they are recognized as trading assets. Trading liabilities include negative market
values. Trading assets are not offset against trading liabilities (netting). The change in the dirty price is shown as affecting
results under the Net trading result.
2. Derivatives intended to protect the fair value of banking book items (fair value hedges) are also shown at their fair value
(dirty price) under Financial investments or Other liabilities. Changes in the fair value of the items to be protected are
entered with an effect on the current results in the Net financial investments result in the same way as the derivatives in
this category.
43

THE BANK FOR CORPORATES
Notes
3. Derivatives intended to hedge payment flows arising out of balance sheet items (cash flow hedges) are also reported
under Financial investments or Other assets at their market value (dirty price). The change in market value is, however,
netted against the reserves for hedging purposes without effect on the results.
4. Other derivatives are intended to protect against banking book market risks, but it is not possible to show a microhedge
because hedging is conducted in relation with a whole portfolio (macrohedge). In application of IAS 39, the fair values in
this category are recorded in the balance sheet, namely, dirty prices under Financial investments and negative dirty prices
under Other liabilities. The change in the value of these derivatives on a clean-price basis is presented in the Income
statement under Other operating results. Since the Bank uses derivatives to control the interest rate risk at a global level,
but since the fair value changes of items protected at a macro level according to IAS 39 cannot be shown with an effect
on the results, this part of the result is of only limited informative value.
(11) GOODWILL. Significant positive differences arising from capital and equity consolidation taking place after 1 January 1995 are
allocated to the subsidiary’s assets. Other positive amounts are entered as goodwill and are written off over a period of 10 to 15
years. They are included in Intangible Assets which forms part of Other Assets. Such differences which arose up to 31 December 1994
were offset against Retained earnings. Depreciation of goodwill is shown under Other operating results. Negative differences arising
out of capital and equity consolidation were attributed to Retained earnings, if their negative effect on results expected at the time
of acquisition had already occurred on the date of the first presentation of IAS consolidated financial statements. Because of their
minor significance, all other negative differences were – with a neutral effect on results – accounted for under Retained earnings.
(12) PROPERTY AND EQUIPMENT. Property and equipment comprises land and buildings used by the Bank and by outside parties
as well as office furniture and equipment. Land and buildings used by the Bank serve mainly for the Bank’s own operations. The item
of land and buildings used by outside parties includes those that function as investments and are let to outside parties.
1. Land and buildings used by the Bank as well as office furniture and equipment are entered at acquisition cost less
planned straight-line depreciation. The assumed projected periods of use are:
Buildings
50 years
Office furniture and equipment
3 to 10 years
IT investments
2.5 to 5 years
2. Minor value assets up to an individual acquisition cost of EUR 363.36 are written off in the year of purchase.
3. Land and buildings used by outside parties that function as investments are recognized at their fair value in accordance
with IAS 40. Land and buildings inside Austria are valued internally according to the Royal Institution of Chartered
Surveyors (RICS) Standard. Land and buildings abroad are valued by external experts according to guidelines that are
recognized not only by the IVSC (International Valuation Standards Committee) but also by TEGOVA (The European
Group of Valuers’ Associations). The gross rental method is used in calculations, on the basis of current rental lists and
assumptions concerning market developments and interest rates. The change in the value of buildings between balance
sheet dates is carried in the Income Statement in net interest income.
(13) INTANGIBLE ASSETS. Intangible assets include goodwill as well as software purchases. Goodwill purchased after 1 January
1995 is written off over 10 to 15 years by the straight-line method, and similar items arising before that date are offset against equity.
Software is written off by the straight-line method over 4 years. Intangible investments are presented under Other assets.
(14) LIABILITIES. Liabilities are entered at cost. Premiums and discounts are distributed over the maturity period of the debt.
(15) TRADING LIABILITIES. Trading liabilities include the negative fair values arising out of derivative financial instruments and are
shown under Other liabilities. They are entered at the fair value.
(16) PROVISIONS. Provisions for pensions, severance payments and jubilee bonus obligations are calculated annually by an independent
actuary according to the projected unit credit method, in accordance with IAS 19. The biometric basis was the ”Calculation
bases for pension insurance (Salaried employees, Generation table) by F.W. Pagler – unpublished” – using prediction factors (for
salaried employees) taken from the ”Calculation bases for occupational disability insurance in Austria” by Pagler & Pagler. The most
important parameters are a 5.5% interest rate, a 2% incremental rate of active salary and pension payments, a 1.5% career trend,
44

a fluctuation rate of 0% and assumed pensionable ages of 56.5 years for women and 61.5 years for men. The interest rate was
lowered from 5.75% to 5.5% due to lower interest rates, while the other parameters were not changed.
In earlier years, staff pension entitlements were transferred to a pension fund. The provisions now contain entitlements of staff who
were already on pension at the time of transfer as well as the entitlements of active staff for invalidity and widows’ pensions. The
difference between the amount required for coverage and the proportionate pension provision at the time of transfer is entered in
the balance sheet under deferred assets and is written back evenly over 10 years. Reserves for severance payments are formed to
cover legal and contractual entitlements. A jubilee bonus reserve is formed for the payment of bonuses to long-serving staff. Other
reserves are formed in the amount of projected use in each case.
Notes
THE BANK FOR CORPORATES
(17) CURRENT AND DEFERRED TAXES. Taxes on income are accounted for and calculated in accordance with IAS 12. Current
income tax assets and liabilities are stated according to local tax rates. Tax assets are shown under Other assets, and tax liabilities
under Other liabilities or Reserves. The liability concept is used for the calculation of deferred taxes, and all temporary differences in
amount are taken into consideration. Under this concept, the values of assets and liabilities in the IAS balance sheet are compared
with the values that are applicable to taxation of the consolidated company in question. Differences between these values lead to
temporary differences in value, for which deferred taxation items must be formed on the assets or liabilities side – irrespective of the
time of their release. Deferred tax assets and deferred tax liabilities are then offset, if they exist for each company against the same
tax creditor. Deferred tax assets or unused tax losses carried forward are recorded in the balance sheet if they will probably be used
in relation with future profits.
INFORMATION ON THE INCOME STATEMENT.
(18) NET INTEREST INCOME.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Interest income 1,001.8 814.8
Lending business and money market 827.8 680.3
Fixed-income securities 161.2 124.4
Shares and other variable-yield securities 3.8 1.7
Interests in unconsolidated related enterprises 0.6 0.3
Investments in associates 7.2 4.0
Investments in other enterprises 1.2 4.1
Interest expenses -929.1 -755.2
Deposits -615.1 -501.5
Debts evidenced by certificates -299.3 -241.8
Subordinated capital -14.7 -11.9
Earnings from rental and leasing business 24.2 16.8
Leasing earnings 1.7 4.8
Earnings from rentals 24.4 15.6
Depreciation of property leased and other leasing expenses -1.7 -3.0
Depreciation of property rented -0.2 -0.6
Aggregate 96.9 76.4
45

THE BANK FOR CORPORATES
Notes
(19) NET FEE AND COMMISSION INCOME.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Lending business 0.0 -0.3
Securities business -0.9 0.8
Payment transactions -0.3 -0.4
Environmental aid transactions 5.4 5.1
Other services business 0.8 0.8
Aggregate 5.0 5.9
Environmental aid transactions are services rendered by Kommunalkredit on behalf of the Republic of Austria.
(20) NET CREDIT RISK RESULT.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Allocation to risk provisions -27.4 -13.4
Release of risk provisions 19.0 8.8
Direct write-offs -0.3 -0.5
Amounts received against loans and advances written off 0.1 0.1
Currency adjustments 0.1 -1.6
Aggregate -8.5 -6.6
(21) TRADING RESULT.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Securities trading -1.4 3.2
Currency trading 3.9 -3.1
Interest derivatives -0.5 2.1
Currency derivatives 0.5 0.2
Securities derivatives 0.5 0.5
Other financial instruments 0.0 0.0
Aggregate 3.0 3.0
The net trading result contains net results from the disposal and valuation of items in the trading portfolio, interest and dividend
earnings in the trading portfolio as well as refinancing expenses for the trading portfolio. The trading portfolio is assessed on a fair
value basis.
(22) NET FINANCIAL INVESTMENTS RESULT. This item includes the results from the disposal and valuation of securities in financial
investments, investments in subsidiaries and associates and other investments.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Net result from securities -19.1 -11.9
Net result from investments in
subsidiaries and associates and other investments -2.9 1.1
Aggregate -22.0 -10.9
The net result from securities includes disposal gains amounting to EUR 1.2 m (2000: EUR 1.5 m).
46

(23) GENERAL ADMINISTRATIVE EXPENSES.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Personnel expenses
Salaries -19.1 -16.4
Compulsory social security contributions -5.1 -4.4
Expenses for retirement and employee benefits -3.4 0.6
Total personnel expenses -27.5 -20.3
Other administrative expenses -13.7 -13.4
Depreciation and amortization of property and equipment -2.6 -2.5
Aggregate -43.9 -36.2
Notes
THE BANK FOR CORPORATES
The amount also includes expenses for the real-estate sector amounting to EUR 2.9 m. Expenses for unlet property were negligible.
(24) OTHER OPERATING RESULTS.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Other operating earnings 8.1 3.2
Depreciation of intangible assets -0.8 -0.8
Other tax -0.6 -0.8
Other operating expenses -3.4 -0.9
Aggregate 3.3 0.8
Other operating earnings include EUR 5.7 m from the depreciation of derivatives that were not used as microhedges, EUR 0.4 m
from the transfer of personnel and infrastructure to third parties, as well as EUR 0.3 m from the release of unused reserves of
previous periods. Other operating expenses comprise EUR 1.4 m in relation to the partial disposal of several companies of the realestate
segment and EUR 0.9 m in relation to payments required by the General Settlement Fund Law.
(25) TAX ON INCOME.
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Current tax expense -4.8 -2.5
Deferred tax expense 1.2 0.3
Aggregate -3.6 -2.2
The actual taxes are calculated on the basis of the tax results for the financial year at the local tax rates applicable to the Group
company in question. The following table shows the relation between the expected and actual taxes on income:
in EUR m 1.1. - 31.12.2001 1.1. - 31.12.2000
Profit for the year before tax 33.8 32.4
Income tax expense expected for the financial
year at the statutory tax rate (34 %) -11.5 -11.0
Effects of other tax rates +1.3 -0.1
Tax reductions due to tax-exempt earnings of investments +9.6 +3.7
Tax reductions due to other tax-exempt income +4.6 +2.1
Tax increases due to non-deductible expenses -7.7 -0.2
Tax expense/income not attributable to the reporting period +0.1 +3.3
Reported income tax -3.6 -2.2
(26) APPROPRIATION OF THE PROFIT. The Board of Management will propose to the Annual General Meeting on 15 May 2002
that the net profit for the year 2001 in the separate financial statements for Investkredit, amounting to EUR 6,470,997.86, be used
to pay a dividend of EUR 1.00 per share including bonus. The total distribution is EUR 6,330,000.00. That is some 14% of the
dividend-bearing share capital for 2001, amounting to EUR 46,000,110.00. After payment of the Supervisory Board emoluments,
the remainder of some EUR 0.02 m will be carried forward.
47

THE BANK FOR CORPORATES
Notes
(27) EARNINGS PER SHARE. According to IAS 33, earnings per share are calculated by dividing the Group profit for the year by the
average number of shares outstanding.
31.12.2001 31.12.2000
Net profit for the year in EUR m 23.1 26.8
Average number of no par value shares issued 6,330,000 6,330,000
Profit per share in EUR 3.65 4.23
The amounts of the previous year were adjusted by a share split-up of 1:10. The adjusted earnings per share take into account the
potential dilution effect arising out of the exercise of conversion and option rights. The adjusted earnings per share for 2001 and
2000 show no deviation from the above figures.
INFORMATION ON THE BALANCE SHEET.
(28) CASH AND BALANCES WITH CENTRAL BANKS. This item consists solely of cash and balances with central banks.
(29) LOANS AND ADVANCES TO BANKS.
Repayable on demand
Other
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Austrian banks 53 31 312 327
Foreign banks 7 9 516 295
Aggregate 60 40 828 622
The amount of EUR 51 m (2000: EUR 79 m) included in this item represents the refinancing shares of customer banks in the TOP
scheme, an aid plan of the Republic of Austria that was discontinued in 1995.
(30) LOANS AND ADVANCES TO CUSTOMERS.
Repayable on demand
Other
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Austrian customers 41 112 4,293 3,566
Enterprises 17 88 1,864 1,924
Public sector 17 10 2,275 1,467
Other 7 14 154 175
Foreign customers 12 14 1,741 1,259
Enterprises 12 13 1,141 895
Public sector 0 0 587 364
Other 0 0 12 0
Aggregate 53 126 6,033 4,824
This item includes loans and advances of EUR 1.5 m (2000: EUR 1.1 m) in respect of finance lease contracts. The total of leasing
instalments outstanding and residual values not guaranteed is EUR 1.9 m (2000: EUR 1.2 m), and the aggregate of the interest
components not yet earned is EUR 0.4 m (2000: EUR 0.1 m).
(31) LOANS AND ADVANCES TO RELATED ENTERPRISES AND ENTERPRISES IN WHICH AN EQUITY INVESTMENT IST HELD.
Related enterprises
Enterprises in which an equity
investment is held
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Loans and advances to banks 3 0 0 0
Loans and advances to customers 45 46 87 110
Other assets 438 342 44 50
Aggregate 487 388 130 160
48

(32) RISK PROVISIONS. Risk provisions are related to loans and advances to customers and contingent liabilities. They include credit
risks as well as a litigation risk in relation to a financing transaction. The assessment basis for valuation adjustment also includes
deferred interest as of the balance sheet date. Provisions for country risks which are included in this item are directly allocated to the
borrowers. Global valuation adjustments were not undertaken. The amount of loans and advances bearing no interest and earnings
was EUR 37 m (2000: EUR 42 m) before valuation adjustment.
in EUR m 31.12.2001 31.12.2000
As at 1 January 64 74
Additions
Allocation to risk provisions for loans and advances 27 13
Disposals
Earmarked use -4 -16
Release of risk provisions for loans and advances -19 -9
Currency adjustments 0 2
As at 31 December 69 64
Notes
THE BANK FOR CORPORATES
(33) TRADING ASSETS.
in EUR m 31.12.2001 31.12.2000
Bonds and other fixed-income securities 21 110
Money market paper 0 0
Loans and bonds 21 110
thereof:
Listed bonds 20 83
Shares and other variable-yield securities 5 6
Shares 5 5
Investment certificates 0 0
Other 0 0
thereof:
Listed shares and other variable-yield securities 5 6
Own shares and other variable-yield securities 0 0
Positive fair values from derivative financial instruments 68 72
Other trading portfolio items 0 0
Aggregate 94 187
(34) FINANCIAL INVESTMENTS.
in EUR m 31.12.2001 31.12.2000
Bonds and other fixed-income securities 3,257 2,287
Money market paper 0 0
Loans and bonds 2,935 1,958
Treasury bills 322 328
thereof:
Listed bonds 2,941 2,280
Shares and other variable-yield securities 177 66
Shares 6 11
Investment certificates 172 55
thereof:
Listed shares and other variable-yield securities 32 55
Own shares and other variable-yield securities 0 0
Other securities and derivatives for hedging purposes 296 259
Investments in unconsolidated related enterprises 30 32
Investments in enterprises accounted for under the equity method 59 44
Other investments 13 2
Aggregate 3,831 2,690
49

THE BANK FOR CORPORATES
Notes
Financial investments include securities belonging to the category Available for sale in the amount of EUR 2,101 m (2000: EUR 1,015 m).
Investments in unconsolidated related enterprises do not contain any investments in banks. Investments in enterprises accounted for
under the equity method include a EUR 15 m bank investment. The schedule in point 35 (Disclosure of equity investments) contains
a complete list and classification of all holdings in unconsolidated related enterprises, enterprises accounted for under the equity
method and other investments. This list, furthermore, informs about the proportionate investments, equity and annual results. The
development and composition of all financial investments (excluding those securities classified as Available for sale) is disclosed under
point 37 (Schedule of fixed asset transactions). The Investkredit Group investments include mainly banks and financial institutions as
well as real-estate enterprises. Moreover, the Group has a single-entity relationship with VBV beta Anlagen Vermietung Gesellschaft mbH
in the field of corporation and turnover tax.
(35) DISCLOSURE OF EQUITY INVESTMENTS.
BWG- Investment Extent of investment Information on financial statement
Category
Shareholders´ equity
Last financial pursuant Profit/loss
without with statement to § 244 (3) for the
dormant dormant holding available Commercial Code year
Name and registered office 1) direct indirect 2) % 3) % as at EUR m EUR m
1. Related enterprises
1.1. Fully consolidated related enterprises
VBV Anlagenvermietungs- und
Beteiligungs-Aktiengesellschaft, Vienna FI x 100.00 % 31.12.2001 38.8 8.3
VBV Holding Gesellschaft mbH, Vienna FI x x 100.00 % 31.12.2001 8.7 3.1
VBV beta Anlagen Vermietung
Gesellschaft mbH, Vienna (Organschaft) FI x 100.00 % 31.12.2001 16.7 0.0
VBV Vermögensanlagen und Beteiligungen Verwaltungs-
GmbH Investitionsgüter-Vermietungs OHG, Vienna FI x x 100.00 % 31.12.2001 14.1 0.3
E.I.A. eins Immobilieninvestitionsgesellschaft mbH, Vienna OE x x x 100.00 % 100.00 % 31.12.2001 1.6 0.6
VBV Holding GmbH & Co Immobilien-
Vermietungen OHG, Vienna AB x 100.00 % 31.12.2001 7.7 0.5 8)
VBV Holding GmbH & Co Immobilien-
Investitionen OHG, Vienna AB x 100.00 % 31.12.2001 -0.1 -0.1 8)
Europolis Invest Immobilien Management GmbH, Vienna OE x 100.00 % 31.12.2001 0.1 -0.4 14)
KA Beteiligungsholding GmbH, Vienna AB x 100.00 % 31.12.2001 88.0 0.0 15)
Investkredit International Bank p.l.c., Sliema/Malta CI x x 26.09 % 16) 31.12.2001 49.6 3.5
VBV drei Anlagen Vermietung Gesellschaft mbH, Vienna OE x 100.00 % 31.12.2001 21.8 3.9 10)
EUROPOLIS INVEST Management s.r.o., Prague OE x 100.00 % 31.12.2001 0.0 0.0
“VBV iota“ - IEB Holding Gesellschaft mbH, Vienna OE x 86.96 % 31.12.2001 8.1 -3.0
EUROPOLIS CE Alpha Holding GmbH
(previously EUROPOLIS CE Holding GmbH), Vienna AB x 65.00 % 31.12.2001 -0.4 -1.0
Europolis Hadovka s.r.o.
(previously Europolis Holding s.r.o.), Prague OE x 65.00 % 31.12.2001 7.6 1.1 13)
Infopark Research Center I Kft, Budapest OE x 65.00 % 31.12.2001 -0.7 0.8
Europolis Holding Sp. z o.o., Warsaw OE x 65.00 % 31.12.2001 11.7 2.9 11)
EUROPOLIS CE Beta Holding GmbH (previously
EUROPOLIS CE Warschau Holding AG), Vienna AB x 65.00 % 31.12.2001 1.4 0.0
Europolis Holding Kft, Budapest OE x 65.00 % 31.12.2001 3.6 1.9
Europolis Saski Holding Sp. z o.o., Warsaw OE x 65.00 % 31.12.2001 13.1 -0.7
Saski Park Sp. z o.o., Warsaw OE x 65.00 % 31.12.2001 3.6 1.7
Europolis E30 Holding Sp. z o.o., Warsaw OE x 65.00 % 31.12.2001 5.6 -0.2
E30 Industrial Center II Sp. z o.o., Warsaw OE x 65.00 % 31.12.2001 0.2 0.5
E30 Industrial Center I Sp. z o.o., Warsaw OE x 65.00 % 31.12.2001 -0.2 0.4
RCP Holding GmbH, Vienna AB x 65.00 % 31.12.2001 20.5 0.0 12)
RCP Alfa s.r.o., Prague OE x 65.00 % 31.12.2001 5.9 0.0
EUROPOLIS CE Gamma Holding GmbH, Vienna AB x 65.00 % 31.12.2001 0.0 0.0
Kommunalkredit Austria AG, Vienna CI x 51.00 % 31.12.2001 106.3 11.3
Kommunalkredit Beteiligungs- und
Immobilien GmbH, Vienna AB x 51.00 % 31.12.2001 5.5 0.2
50

BWG- Investment Extent of investment Information on financial statement
Category
Shareholders´ equity
Last financial pursuant Profit/loss
without with statement to § 244 (3) for the
dormant dormant holding available Commercial Code year
Name and registered office 1) direct indirect 2) % 3) % as at EUR m EUR m
1.2. Included at cost
Europa Consult GmbH, Vienna OE x 100.00 % 31.12.2001 1.1 0.0
INVEST EQUITY early stage Beteiligungs-AG, Vienna OE x 100.00 % 31.12.2001 3.4 -0.3 7)
Invest Mezzanine Capital Management
Gesellschaft mbH, Vienna OE x 100.00 % 31.12.2001 0.0 0.0
VBV vier Anlagen Vermietung Gesellschaft mbH, Vienna OE x x x 100.00 % 31.12.2000 0.0 0.1
VBV sechs Anlagen Vermietung Gesellschaft mbH, Vienna FI x x x 100.00 % 31.12.2000 0.0 0.0
ETECH Management Consulting
Gesellschaft mbH, Vienna OE x 100.00 % 31.12.2001 0.0 0.0 7)
IED-Beteiligungen GmbH, Munich OE x 100.00 % x x x 6)
CALG Secunda Grundstückverwaltung GmbH, Vienna FI x x x 75.00 % 98.53 % 31.12.2000 0.0 0.1
CALG Vomido Grundstückverwaltung GmbH, Vienna FI x x x 50.00 % 92.42 % 31.12.2000 0.0 0.0
INVEST EQUITY early stage Business
Consulting GmbH, Vienna OE x 100.00 %
VBV acht Anlagen Vermietung Gesellschaft mbH, Vienna OE x 100.00 %
Investkredit Management s.r.o., Prague OE x 100.00 %
Schloß Gabelhofen Hotelbetriebsgesellschaft
mbH, Vienna OE x 100.00 %
Schloß Krumbach Hotelbetriebsgesellschaft mbH, Vienna OE x 100.00 %
VBV elf Anlagen Vermietung Gesellschaft mbH, Vienna OE x 100.00 %
VBV gamma Anlagen Vermietung
Gesellschaft mbH, Vienna FI x 100.00 %
VBV Holding GmbH & Co Anlagen Leasing OHG, Vienna OE x 100.00 %
VBV neun Anlagen Vermietung Gesellschaft mbH, Vienna FI x 100.00 %
Immo-Lease Grundstücksverwaltungs-GmbH, Vienna FI x 99.69 %
LBL eins Grundstückverwaltung Gesellschaft mbH, Vienna FI x 81.00 %
VBV zwölf Anlagen Vermietung
Gesellschaft mbH, Vienna OE x 75.00 %
WIKA Leasing-Gesellschaft mbH, Vienna FI x 75.00 %
HTP Pekarska s.r.o., Prague OE x 65.00 %
Europolis Pekarska s.r.o., Prague OE x 65.00 %
RCP Beta s.r.o., Prague OE x 65.00 %
RCP Delta s.r.o., Prague OE x 65.00 %
RCP Epsilon s.r.o., Prague OE x 65.00 %
RCP Gama s.r.o., Prague OE x 65.00 %
RCP Omega s.r.o., Prague OE x 65.00 %
RCP ISC s.r.o., Prague OE x 65.00 %
Kommunalkredit Finance & Leasing s.r.o.
(previously Cesky Komunalny Leasing s.r.o.), Prague FI x 51.00 %
IED Holding ltd, Sliema/Malta OE x 26.09 %
Notes
THE BANK FOR CORPORATES
2. Associates
2.1. Included at equity
IMMORENT-BUSTA Grundverwertungsgesellschaft
mbH, Vienna FI x x x 50.00 % 99.44 % 31.12.2000 0.0 0.2
Immorent-VBV Grundverwertungs-
Gesellschaft mbH, Vienna FI x 100.00 % 5) 31.12.2000 4.3 4.0
VBV delta Anlagen Vermietung Gesellschaft mbH, Vienna OE x 40.00 % 31.12.2001 0.9 0.8 7)
International Business Center Rt, Budapest OE x 32.50 % 31.12.2001 10.3 1.6
INVEST EQUITY Beteiligungs-AG, Vienna OE x 29.85 % 31.12.2001 20.4 -7.7 7)
51

THE BANK FOR CORPORATES
Notes
BWG- Investment Extent of investment Information on financial statement
Category
Shareholders´ equity
Last financial pursuant Profit/loss
without with statement to § 244 (3) for the
dormant dormant holding available Commercial Code year
Name and registered office 1) direct indirect 2) % 3) % as at EUR m EUR m
“Die Erste“ Büro- und Gewerbezentren Errichtungsund
Betriebs-Gesellschaft mbH, Linz OE x 25.50 % 31.12.2000 2.8 0.2
Dexia Kommunalkredit Holding Gesellschaft mbH, Vienna AB x 25.07 % 31.12.2001 27.2 2.3
Tisi Leasinggesellschaft mbH, Vienna FI x x 25.00 % 99.26 % 31.12.2000 3.8 3.7
Leasing 431 Grundstückverwaltung
Gesellschaft mbH, Vienna FI x 25.15 % 31.12.2000 11.3 1.0
Prvá Komunálna Banka a.s., Zilina (SK) CI x 19.65 % 31.12.2001 31.6 6.4
2.2. Included at cost
IMMORENT-IBA Leasinggesellschaft mbH, Vienna FI x x x 50.00 % 93.59 % 31.12.2000 0.1 0.0
Invest Equity Management Consulting
Gesellschaft mbH, Vienna OE x x 47.39 % 31.12.2000 0.1 0.0
AGCS Gas Clearing and Settlement GmbH, Vienna OE x 20.00 % x x x 6)
Betriebsanlagen & Wirtschaftsgüterleasing GmbH, Vienna FI x 50.00 %
CALG 435 Grundstückverwaltung Gesellschaft mbH, Vienna FI x 50.00 %
LBL drei Grundstückverwaltung-GmbH, Vienna FI x 33.20 %
Ing. Rudolf Kaiser Gesellschaft mbH, Sattledt OE x 28.57 %
Kofis Leasing a.s., Zilina (SK) OE x 25.07 %
IMS - Ionen Mikrofabrikations Systeme
Gesellschaft m.b.H., Vienna OE x 24.04 %
3. Other investments included at cost
APCS Power Clearing and Settlement AG (previously
APCS Power Clearing and Settlement GmbH), Vienna OE x 14.00 % 31.12.2000 0.2 -0.1 9)
Venture Capital in treuhändiger Verwaltung der Venture
Finanzierungsgesellschaft m.b.H. in Liqu., Vienna OE x 5.78 % 31.12.2000 0.1 0.0
Venture Finanzierungsgesellschaft m.b.H. in Liqu., Vienna CI x 5.78 % 31.12.2000 0.1 0.0
WED Holding GmbH, Vienna OE x 5.77 % 31.12.2000 11.5 0.0
Kasberg Lift - GmbH & Co KG, Grünau OE x 4.88 % x x x 4)
Euro Synergies Investment S.C.A., Luxembourg OE x 1.51 % 31.12.2000 7.1 -5.5
Austrian Research Centers GmbH (previously Österreichisches
Forschungszentrum Seibersdorf GmbH), Vienna OE x 0.93 % x x x 4)
Aviation Holdings plc, London OE x 0.37 % x x x 4)
Einlagensicherung der Banken und
Bankiers GmbH, Vienna OE x x 0.15 % x x x 4)
1) CI = Credit Institution, FI = Financial Institution, AB = Auxiliary Banking Service, OE = Other Enterprise
2) Shares include dormant partnerships
3) Including indirect investments, without dormant partnerships
4) Investments of minor significance
5) No controlling influence
6) New investment
7) According to the preliminary financial statements
8) Incomplete financial year from 28 July to 31 December 2001
9) Incomplete financial year from 30 June to 31 December 2000
10) Merger of Europolis Invest Immobilieninvestitionsgesellschaft m.b.H., Vienna, and VBV fünf Anlagen Vermietung Gesellschaft m.b.H.,
Vienna with VBV drei Anlagen Vermietung Gesellschaft m.b.H., Vienna in the financial year of 2001
11) Merger of Warsaw Tower Sp. z o.o., Warsaw with Europolis Holding Sp. z o.o., Warsaw, in the financial year of 2001
12) Merger of E.I.P. Beteiligungs Gesellschaft m.b.H., Vienna, and RCP Beteiligungsverwaltung-Gesellschaft m.b.H., Vienna with
RCP Holding GmbH, Vienna in the financial year of 2001
13) Merger of Europolis Hadovka s.r.o., Prague with Europolis Holding s.r.o., Prague (now Europolis Hadovka s.r.o., Prague)
14) Incomplete financial year from 7 February to 31 December 2001
15) Incomplete financial year from 29 November to 31 December 2001
16) Controlling influence
52

(36) PROPERTY AND EQUIPMENT.
in EUR m 31.12.2001 31.12.2000
Land and buildings used by the Group 23 24
Land and buildings used by outside parties 259 185
Office furniture and equipment 6 6
Aggregate 289 215
Notes
THE BANK FOR CORPORATES
The development and composition of property and equipment is presented under point 37 (Schedule of fixed asset transactions).
Minor value assets are entered in the schedule of fixed asset transactions as additions and disposals in the year of acquisition. The
balance sheet item of Land and buildings used by the Group includes a land value of EUR 4 m (2000: EUR 4 m). The increase from
EUR 185 m to EUR 259 m in the item of land and buildings used by outside parties is due to the acquisition of three office properties
and one building in Prague with the latter being still under construction. The difference between the fair value and the carrying
amount in the items of the individual balance sheets which cover all land and buildings used by outside parties results in EUR 73 m
(2000: EUR 55 m).
(37) SCHEDULE OF FIXED ASSET TRANSACTIONS.
At cost Currency Additions Disposals At cost
as of trans- as of 31
in EUR m 1 January lation December
Property and equipment 225 7 77 -2 306
Land and buildings 210 7 74 -1 290
Office furniture and equipment 14 0 3 -1 16
Intangible assets 17 0 3 -11 9
Goodwill 14 0 2 -10 7
Other 2 0 0 -1 2
Financial investments (excluding securities available for sale) 1,368 6 287 -106 1,555
Other related enterprises 92 2 3 -20 77
Enterprises accounted for under the equity method 74 1 17 0 92
Other investments 5 0 11 -1 16
Fixed-income securities 1,197 2 256 -85 1,370
Variable-yield securities 0 0 0 0 0
Other financial investments 0 0 0 0 0
Aggregate 1,610 12 367 -119 1,870
Accumu- Accumu- Carrying Current Current Carrying
lated lated amount depre- write- amount
in EUR m depreciation write-ups 31.12. ciation ups 1.1.
Property and equipment -22 5 289 -4 2 215
Land and buildings -12 5 282 -2 2 209
Office furniture and equipment -10 0 6 -2 0 6
Intangible assets -3 0 6 -1 0 15
Goodwill -1 0 5 0 0 14
Other -2 0 1 0 0 1
Financial investments (excluding securities available for sale) -100 6 1,462 -17 2 1,251
Other related enterprises -47 0 30 -3 0 32
Enterprises accounted for under the equity method -34 1 59 -3 0 44
Other investments -3 0 13 0 0 2
Fixed-income securities -15 5 1,360 -12 2 1,173
Variable-yield securities 0 0 0 0 0 0
Other financial investments 0 0 0 0 0 0
Aggregate -125 11 1,756 -22 4 1,481
53

THE BANK FOR CORPORATES
Notes
Current depreciation includes extraordinary depreciation amounting to EUR 8.4 m. The acquisition of real-estate project-type companies
resulted in additions in land and buildings in the amount of EUR 74 m.
(38) OTHER ASSETS.
in EUR m 31.12.2001 31.12.2000
Intangible assets 6 15
Other assets 38 31
Deferred items 16 13
Deferred interest 0 0
Aggregate 61 59
The development and composition of intangible assets is shown under point 37 (Schedule of fixed asset transactions). The intangible
assets include goodwill amounting to EUR 5 m (2000: EUR 14 m). Other assets include deferred tax assets of EUR 7 m (2000: EUR 2 m).
A breakdown and explanation of deferred taxes is contained in point 43. The difference between the pension reserve at the time of
transfer recorded in the balance sheet and the pension fund capital requirement of EUR 1.5 m (2000: EUR 1.9 m) is recorded in
deferred items on the assets side.
(39) AMOUNTS OWED TO BANKS.
Repayable on demand
Other liabilities
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Austrian banks 24 15 1,403 1,276
Foreign banks 9 128 1,375 939
Aggregate 33 143 2,778 2,215
(40) AMOUNTS OWED TO CUSTOMERS.
Repayable on demand
Other liabilities
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Repayable on demand
Austrian customers
Other liabilities
41 39 554 197
in EUR m
Enterprises
31.12.2000
13
31.12.1999
25 194
31.12.2000
146
31.12.1999
Public sector 0 0 16 16
Austrian banks
Other
14
28
6
14 345
884
35
877
Foreign customers 4 9 87 83
Enterprises 4 9 31 27
Public sector 0 0 4 4
Other 0 0 53 52
Aggregate 45 48 642 280
(41) DEBTS EVIDENCED BY CERTIFICATES.
thereof listed
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Bonds issued 6,380 5,046 6,017 4,749
Money market paper issued 0 0 0 0
Other debts evidenced by certificates 73 93 0 0
Aggregate 6,453 5,139 6,017 4,749
Bonds issued amounting to EUR 431 m will fall due next year.
54

(42) PROVISIONS.
in EUR m 31.12.2001 31.12.2000
Provisions for current taxes 8 8
Provisions for deferred taxes 2 0
Provisions for personnel expenses 30 30
Other provisions 4 3
Aggregate 45 41
Notes
THE BANK FOR CORPORATES
As a consequence of mergers in the years 1998 and 1999, tax provisions of merged enterprises that were formed following inspections
in previous years, amounting on the balance sheet date to EUR 4.3 m, were taken over without any effect on results. A breakdown
and explanation of deferred taxes is contained under point 43.
Provisions for personnel expenses developed as follows:
in EUR m Pension Severance Jubilee bonus Total
Present value of defined benefit
obligations - DBO - as at 1.1.2001 49 5 1 55
- Plan assets -28 0 0 -28
Provisions as of 1.1.2001 21 5 1 27
Service Cost 1 0 0 1
Interest Cost 3 0 0 3
Payments -2 0 0 -2
Change in plan assets 0 0 0 0
Actuarial result 2 0 0 2
Definded benefit obligations
- DBO - as at 31.12.2001 49 6 1 56
- Plan Assets -28 0 0 -28
Actuarial provision requirement as at 31.12.2001 20 6 1 27
Vacation provisions 3
Provisions for personnel expenses as at 31.12.2001 30
The pension provisions are the result of obligations arising from direct promises or individual contracts. In previous years, staff pension
entitlements were transferred to a pension fund and are shown as Plan assets in the Table. The provisions now contain entitlements
of staff who were already on pension at the time of transfer and entitlements of active staff for invalidity and widows’ pensions. The
full actuarially calculated obligation for pensions is EUR 48.6 m (2000: EUR 49.0 m), of which entitlements amounting to EUR 28.2 m
(2000: EUR 28.1 m) have been transferred to the pension fund, resulting in provisions of EUR 20.4 m (2000: EUR 20.8 m).
As at 31 December 2001, other provisions included bonuses for participating in the preparation of the balance sheet of EUR 1.6 m
and auditing and consulting expenses in the amount of EUR 0.8 m.
The provisions developed as follows:
As at Allo- Reclassi- As at
in EUR m 1.1.2001 Use Release cation fication 31.12.2001
Provisions for current taxes 8 -1 -2 3 0 8
Provisions for deferred taxes 0 0 0 2 0 2
Provisions for personnel expenses 30 -2 0 2 0 30
Other provisions 3 0 -3 4 0 4
Aggregate 41 -2 -5 11 0 45
55

THE BANK FOR CORPORATES
Notes
(43) DEFERRED TAX ASSETS AND LIABILITIES. Deferred tax assets and liabilities include taxes arising out of temporary differences
between valuation according to IAS and amounts from the tax-based profit calculations of the Group enterprises.
Deferred tax were related to the following items:
Deferred tax assets
Deferred tax liabilities
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Financial investments 19 6 21 8
Property and equipment 0 0 4 1
Leasing 0 0 0 0
Provisions for personnel expenses 4 4 0 0
Other provisions 0 0 0 0
Risk provisions 0 0 0 0
Trading portfolio 0 0 0 0
Other items 0 0 0 1
Tax losses carried forward 7 2 0 0
Aggregate 30 12 25 10
Net 5 2
No deferred tax items were formed for temporary differences in relation with investments of EUR 51.1 m in subsidiaries, since the
requirements under IAS 12.39 were satisfied.
(44) OTHER LIABILITIES.
in EUR m 31.12.2001 31.12.2000
Trading liabilities 78 52
Deferred items 44 41
Leasing liabilities 0 0
Other liabilities 389 226
Dividend paid by Investkredit Bank AG 6 6
Aggregate 517 324
The negative fair values from derivative financial instruments in the trading portfolio are presented under trading liabilities. The
deferred liabilities chiefly contain premiums from long-term loans and bonds as well as deferred items related to interest support for
the TOP schemes. Other liabilities include EUR 9.5 m of tax debts (2000: EUR 10.4 m), most of which are deferrals arising out of a tax
inspection.
(45) SUBORDINATED CAPITAL.
thereof listed
in EUR m 31.12.2001 31.12.2000 31.12.2001 31.12.2000
Profit participation rights capital 0 0 0 0
Supplementary capital 100 49 88 37
Other subordinated liabilities 191 148 190 148
Aggregate 291 197 278 185
The most important subordinated liabilities are:
Nominal in EUR Interest
Currency in m m rate Issuer/type
EUR 45.0 45.0 7.000 % Investkredit-supplementary capital bond 2001
ATS 400.0 31.4 8.250 % Investkredit bond issue 1995-2005
ATS 300.0 23.2 6.500 % Investkredit bond issue 1997-2012
USD 20.0 23.2 5.250 % Subordinated Collared Floating Rate Notes 1994-2004
ATS 300.0 22.8 7.500 % Investkredit bond issue 1993-2005
56

Expenses related to all subordinated liabilities in the financial year amounted to EUR 14.7 m (2000: EUR 11.9 m). Claims of creditors
to the repayment of these liabilities are subordinated in relation with other creditors and, in the event of bankruptcy or liquidation,
may be paid back only after all non-subordinated creditors have been satisfied.
(46) EQUITY. The share capital of EUR 46,000,110.00 is divided into 6,330,000 non par value shares. In the financial year, a share
split-up of 1:10 was carried out. The shares are issued to bearer. With the approval of the Supervisory Board, the Board of Management
is empowered to increase the share capital up to 23 May 2006 by issuing a maximum of 42,280 new non par value shares
issued to bearer, in one or more operations and by at most EUR 3,072,487.60. During the financial year, Investkredit traded in its own
shares for market-making reasons. As at 31 December 2001, Investkredit held 1,843 of its own shares in the carrying amount of
EUR 0.1 m. Due to the minor significance, they were not deducted from equity but presented under Financial investments. The
maximum number of own shares held in the financial year was 301,350.
Notes
THE BANK FOR CORPORATES
The consolidated own funds to be taken into account according to the Austrian Banking Act (§ 24) amounted to EUR 550.8 m as at
31 December 2001. The consolidated assessment basis (according to the banking book and the trading book) was EUR 5,281.2 m.
This leads to a consolidated solvency ratio of 10.4% as compared with 9.9% in 2000. The consolidated Tier 1 capital ratio amounted
to 6.8% as compared with 6.4%. The composition and development of the Investkredit Group’s own funds calculated according to
the Austrian Banking Act are as follows:
Assessment basis pursuant to § 22 (2) Banking Trading Total Pro- Compared
Austrian Banking Act (in EUR m) book book 2001 portion to 2000
Risk-weighted assets 4,305 4,305 84.2 % 3,402
Risk- and counterpart-weighted
off-balance-sheet transactions 589 589 11.5 % 471
Special off-balance-sheet transactions 219 219 4.3 % 175
Assessment basis, aggregate 5,112 5,112 100.0 % 4,048
Own funds requirement, Banking book 1) 409 409 74.2 % 324
Own funds requirement, Trading book 2) 14 14 2.5 % 18
Own funds requirement, Currency risk 2) 1 1 0.1 % 0
Total = Required own funds 409 14 423 76.8 % 3) 342
Actual own funds
Core capital 358 358 272
Supplementary capital 212 212 163
Carrying amount of investments
(holdings of more than 10 %) -34 -34 -31
Own funds to be taken into account (Tier 1 and Tier 2) 537 0 537 404
Tier 3 14 14 18
Total own funds 537 14 551 100.0 % 421
Free own funds 128 23.2 % 79
1)
8 % of the assessment basis
2)
According to capital adequacy regulations, standard procedure
3)
Share in own funds
57

THE BANK FOR CORPORATES
Notes
OTHER INFORMATION.
(47) INFORMATION ON THE CASH FLOW STATEMENT. The Cash flow statement shows the status and development of cash flows
of the Investkredit Group. The cash holdings recorded include cash in hand and balances with central banks, strictly interpreted.
(48) SEGMENT REPORTING. The purpose of segment reporting is to present the components of net results of the Investkredit
Group in the following segments:
Corporates (corporate lending, corporate finance, private equity and consulting, asset management, treasury)
Local government (local government financing)
Real estate (real-estate project development, investments and portfolio management)
Consolidation bookkeeping entries are shown under Other. When interest rates corresponding to the market conditions do not
apply, market interest rates fixed according to the market interest rate method are used for pricing between the individual segments.
Services for subsidiaries are performed at cost price by Investkredit Bank AG.
Local go- Real
Disclosure in EUR m of results by segments 2001
Corporates vernment estate Other Total
Interest and similar income 524.9 478.6 27.1 0.0 1,030.5
Interest and similar expenses -470.1 -451.4 -12.0 0.0 -933.6
Net interest income 54.8 27.1 15.0 0.0 96.9
Fee and commission income 3.7 6.8 0.4 0.0 10.9
Fee and commission expenses -3.2 -2.3 -0.4 0.0 -5.9
Net fee and commission income 0.5 4.5 0.0 0.0 5.0
Net credit risk result -8.0 -0.5 0.0 0.0 -8.5
Trading result 2.6 0.4 0.0 0.0 3.0
Net financial investments result -22.5 0.5 0.0 0.0 -22.0
General administrative expenses -25.5 -15.4 -2.9 0.0 -43.9
Other operating results 2.9 1.3 -0.9 0.0 3.3
Extraordinary result 0.0 0.0 0.0 0.0 0.0
Profit for the year before tax 4.7 17.9 11.2 0.0 33.8
Tax on income 0.7 -0.3 -3.9 0.0 -3.6
Profit for the year after tax 5.4 17.5 7.3 0.0 30.2
External share in profit for the year 0.3 -7.1 -0.2 0.0 -7.1
Net profit 5.7 10.4 7.1 0.0 23.1
Segment assets 5,873 5,015 336
Segment liabilities 5,844 4,872 142
Average equity 175 55 47 277
Cost-income ratio 44.0% 48.2% 19.6% 41.8%
Return on equity before tax 12.2%
Return on equity – net profit 3.2% 18.9% 15.1% 8.4%
58

Local go- Real
Disclosure in EUR m of results by segments 2000 (Comparative figures) Corporates vernment estate Other Total
Interest and similar income 498.1 331.1 18.7 -0.9 846.9
Interest and similar expenses -447.4 -312.4 -10.8 0.1 -770.5
Net interest income 50.7 18.7 7.9 -0.8 76.4
Fee and commission income 4.2 6.1 0.0 0.0 10.4
Fee and commission expenses -3.9 -0.4 -0.3 0.0 -4.5
Net fee and commission income 0.3 5.7 -0.2 0.0 5.9
Net credit risk result -4.5 -0.5 -1.5 0.0 -6.6
Trading result 1.7 1.3 0.0 0.0 3.0
Net financial investments result -10.8 -0.1 0.2 -0.1 -10.9
General administrative expenses -19.4 -12.6 -4.2 0.0 -36.2
Other operating results 2.9 -0.9 -1.0 -0.2 0.8
Extraordinary result 0.0 0.0 0.0 0.0 0.0
Profit for the year before tax 20.9 11.5 1.1 -1.1 32.4
Tax on income -0.6 -1.4 -0.2 0.0 -2.2
Profit for the year after tax 20.3 10.1 0.9 -1.1 30.2
Notes
THE BANK FOR CORPORATES
Segment assets 5,349.4 3,365.7 377.2
Segment liabilities 5,070.4 3,265.3 71.4
Average equity 162.0 53.9 59.0 0.0 274.9
Cost-income ratio 36.7 % 49.0 % 55.3 % 42.5 %
Return on equity before tax 12.9 % 21.4 % 1.9 % 11.8 %
Return on equity - net profit 9.7 %
Business activities are conducted preponderantly in Austria. Therefore, a breakdown of revenue by regions does not seem to be
meaningful. The regional breakdown of assets and liabilities is as follows:
31.12.2001 31.12.2000
in EUR m Assets Liabilities Assets Liabilities
Austria 5,864 9,478 4,759 7,387
Rest of European Union 1,921 1,289 1,464 1,015
Rest of Western Europe 669 199 448 147
Rest of Central and Eastern Europe 807 196 599 127
North America 1,620 32 1,120 28
Rest of world 314 0 313 0
Total outside Austria 5,330 1,716 3,945 1,317
Aggregate 11,194 11,194 8,703 8,703
59

THE BANK FOR CORPORATES
Notes
(49) BREAKDOWN BY REMAINING MATURITY.
Breakdown by remaining maturity as at 31 December 2001:
Repayable Up to 3 months 1 to 5 More than
in EUR m on demand 3 months to 1 year years 5 years
Loans and advances to banks 72 371 75 204 165
Loans and advances to customers 58 146 170 1,292 4,420
Securities – trading assets 5 0 0 1 20
Securities – available for sale 47 9 14 273 1,204
Securities – held to maturity 387 1 34 454 864
Securities – micro hedges 0 17 17 32 56
Aggregate 571 543 309 2,256 6,729
Amounts owed to banks 59 1,276 930 81 464
Amounts owed to customers 337 150 47 43 110
Debts evidenced by certificates 116 162 270 3,460 2,444
Subordinated capital 1 0 7 85 198
Aggregate 513 1,588 1,254 3,669 3,216
Breakdown by remaining maturity as at 31 December 2000 (Comparative figures):
Repayable Up to 3 months 1 to 5 More than
in EUR m on demand 3 months to 1 year years 5 years
Loans and advances to banks 40 169 69 211 173
Loans and advances to customers 127 85 83 1,269 3,385
Securities – trading assets 6 0 0 35 75
Securities – available for sale 77 9 11 194 713
Securities – held to maturity 205 1 35 286 657
Securities – micro hedges 0 8 14 36 36
Aggregate 455 274 211 2,032 5,040
Amounts owed to banks 143 1,346 528 143 198
Amounts owed to customers 48 77 20 71 113
Debts evidenced by certificates 80 136 130 2,567 2,227
Subordinated capital 0 0 0 91 107
Aggregate 270 1,558 678 2,872 2,644
Remaining maturity is the period between the balance sheet date and the date on which the claim or liability becomes contractually
due, and, in the case of partial amounts, is calculated separately for each part. Deferred interest is accounted for under the period
”Up to 3 months”.
(50) LOANS AND ADVANCES TO, AND AMOUNTS OWED TO, RELATED ENTERPRISES AND ENTERPRISES IN WHICH AN
EQUITY INVESTMENT IST HELD.
60
in EUR m 31.12.2001 31.12.2000
Loans and advances to banks
Related enterprises 3 0
Investments 0 0
Loans and advances to customers
Related enterprises 45 46
Investments 87 110
Amounts owed to banks
Related enterprises -3 0
Investments 0 0
Amounts owed to customers
Related enterprises -4 -10
Investments -4 -9

(51) SUBORDINATED ASSETS. The assets shown
Durchschnitt
on the balance sheet include the following
Durchschnitt
subordinated assets:
in EUR m 31.12.2001 31.12.2000
Loans and advances to banks 12 12
Loans and advances to customers 0 0
Fixed-income securities 34 35
Variable-yield securities 0 0
Aggregate 46 46
Notes
THE BANK FOR CORPORATES
(52) ASSETS ASSIGNED AS COLLATERAL. The Investkredit Group has furnished claims amounting to EUR 125 m (2000: EUR 114 m)
as security for global loans by the European Investment Bank, Luxembourg. Moreover, it has assigned claims in the amount of
EUR 37 m to Oesterreichische Kontrollbank Aktiengesellschaft. For trading at the Frankfurt and London Stock Exchanges, EUR 6 m
have been furnished as security.
(53) CONTINGENT LIABILITIES AND OTHER OFF-BALANCE-SHEET LIABILITIES.
in EUR m 31.12.2001 31.12.2000
Contingent liabilities
ERP bills 176 197
Guarantees 396 570
Other 0 0
Aggregate 573 767
Other liabilities
Credit lines and promises 461 316
Liabilities from repurchase agreements 0 0
Other 0 0
Aggregate 461 316
(54) OTHER LIABILITIES. Investkredit and Kommunalkredit are required pursuant to § 93 of the Austrian Banking Act to undertake
proportionate safeguarding of depositors’ accounts in the framework of the relevant programme of Banken und Bankiers GmbH,
Vienna. On the basis of leasing agreements, liabilities in the amount of EUR 0.3 m will be incurred in the year 2002 (previous year for
2001: EUR 0.2 m). The corresponding liabilities for the years 2002 to 2006 are EUR 0.9 m (previous year for 2001 to 2005: EUR 0.6 m).
(55) TRUST ACTIVITIES. The breakdown of trust activities not shown in the balance sheet is as follows:
in EUR m 31.12.2001 31.12.2000
Loans and advances to banks 3 1
Loans and advances to customers 189 202
Financial investments 3 21
Trust assets 195 224
Amounts owed to banks 0 0
Amounts owed to customers -195 -226
Trust liabilities -195 -226
61

THE BANK FOR CORPORATES
Notes
(56) Assets and liabilities in foreign currencies. Foreign currencies are those outside the euro area.
31.12.2001 31.12.2000
in EUR m Assets Liabilities Assets Liabilities
USD 1,952 1,883 1,272 1,382
GBP 90 135 75 118
CHF 746 388 553 123
JPY 108 122 111 2
Other 169 145 427 169
Total foreign currency 3,065 2,673 2,437 1,795
EUR 8,129 8,521 6,266 6,909
Aggregate 11,194 11,194 8,703 8,703
(57) DERIVATIVE FINANCIAL TRANSACTIONS. The structure of open derivative financial transactions is as follows:
Nominal amount at 31.12.2001
Remaining maturity Market Market Trading
Up to 1 1 to 5 Over 5 Total value value Total portfolio
in EUR m year years years 2001 positive negative 2000 2001
Interest-rate related business 3,987 7,054 5,260 16,301 216 -244 13,802 3,759
OTC products
FRAs 260 43 - 303 0 -0 138 303
Interest swaps 3,283 6,620 4,904 14,808 214 -239 12,592 3,441
Interest-rate options – purchase 4 71 170 245 2 - 131 -
Interest-rate options – sale 425 321 185 930 - -4 908 -
Other interest contracts - - - - - - - -
Products traded on the stock exchange
Interest-rate futures 15 - - 15 - - 33 15
Currency related business 1,157 1,034 402 2,593 67 -65 3,256 863
OTC products
Currency futures 114 - - 114 3 -0 35 86
Currency swaps 930 1,034 402 2,366 64 -64 3,123 665
Currency options – purchase 55 - - 55 1 - 53 55
Currency options – sale 57 - - 57 - -1 45 57
Other currency contracts - - - - - - - -
Securities related business 4 4 6 14 - - 5 -
OTC products
Shares-/Index futures – purchase - - - - - - - -
Shares-/Index futures – sale - - - - - - - -
Shares-/Index options – purchase 4 4 6 14 - - 4 -
Shares-/Index options – sale - - - - - - 1 -
Products traded on the stock exchange
Shares-/Index futures - - - - - - - -
Shares-/Index options - - - - - - - -
Other business 95 2,222 1,509 3,825 54 -56 2,395 -
OTC products
Options 95 2,222 1,509 3,825 54 -56 2,395 -
Total 5,242 10,314 7,176 22,732 338 -365 19,457 4,623
62

(58) FAIR VALUE BALANCE SHEET.
Fair value
Value of Banking Available Trading Micro
in EUR m item book for sale book hedge Total
Cash and balances with central banks 15 15 0 0 0 15
Loans and advances to banks 887 859 34 0 0 893
Loans and advances to customers 6,086 5,686 320 0 124 6,129
Risk provision -69 -69 0 0 0 -69
Trading assets 94 0 0 94 0 94
Financial investments 3,831 1,735 1,980 0 122 3,837
Tangible fixed assets 289 289 0 0 0 289
Other assets 61 61 0 0 0 61
Aggregate 11,194 8,576 2,334 94 245 11,249
Notes
THE BANK FOR CORPORATES
Amounts owed to banks 2,810 1,946 0 0 870 2,817
Amounts owed to customers 687 630 0 0 53 683
Debts evidenced by certificates 6,453 5,147 0 0 1,361 6,508
Provisions 45 45 0 0 0 45
Other liabilities 517 351 0 78 56 485
Subordinated capital 291 202 0 0 95 297
Minority interests 133 133 0 0 0 133
Equity 258 281 0 0 0 281
Aggregate 11,194 8,735 0 78 2,435 11,249
(59) RISK MANAGEMENT. A good management of risks that might occur in all fields of business reinforces a bank’s competitive
position. Investkredit’s basic principles of risk management are documented in various handbooks and internal guidelines. As part of
the banking risks, the credit risk constitutes the most essential risk the Investkredit Group is exposed to. Other risks that may be
encountered are market risks, liquidity risks and operational risks. Basically, a value at risk is fixed for all fields by an organisational
unit that does not depend on the closing of deals. Furthermore, stress tests simulating extreme market fluctuations are carried out.
In addition, the determination of a bank’s economic equity is essential in assessing the risks it is able to bear. New agreements
reached by the Basel Committee are likely to entail changes concerning the capital adequacy requirements. Investkredit aims at
quickly applying new methods and has already carried out parallel calculations to this end.
(60) MARKET RISKS ARISING OUT OF TRADING ACTIVITIES. Market risks arising out of trading activities are calculated continuously
– broken down by interest rate risk, share price risk and currency risk – and are assessed daily after close of business. With a
confidence level of 99 % and a holding period of 1 day, a variance/covariance approach is applied for the interest rate risk and the
currency risk; in the case of the share price risk, volatility shown by market data or figures calculated by the Bank is taken as the basis.
The strict rules of an internal risk management handbook are applied to the conduct of trading activities. These rules also contain
limits for value at risk. The breakdown of risk is as follows:
Average
Average
in EUR m 2001 31.12.2001 2000 31.12.2000
Debt issues 1.2 1.1 0.6 0.4
Share price risks 0.2 0.3 0.4 0.2
Currency 0.1 0.0 0.1 0.1
Aggregate 1.5 1.4 1.1 0.7
(61) INTEREST RATE AND LIQUIDITY RISKS IN THE BANKING BOOK. With changing market interest rates, the bank may encounter
interest rate risks, if it holds a surplus of fixed-rate positions. The interest rate risk is, however, assessed continuously in the light of
the interest risk item. For this purpose, fixed-rate assets and liabilities, as well as derivative instruments are entered into maturity
tables according to their respective interest-lockup period. As a consequence, a gap analysis using different scenarios is carried out
and the value at risk is calculated by means of the RiskMetrics method (confidence level of 99%, holding period of 1 month).
63

THE BANK FOR CORPORATES
Notes
Liquidity risks are similarly assessed which enables the bank to meet its payments when they are due, as well as to procure sufficient
means under the expected conditions if the need occurs. Refinancing within the stipulated time is an essential target to be met in
bank controlling.
(62) CREDIT RISK REPORT. Credit risks imply that debtors are not able to meet their payments. Credit risks comprise non-payment
risks, country risks and default risks whereas the probability of non-payment by a debtor is assessed via different rating schemes.
Therefore, the Bank’s rating system first takes into account the non-payment risk of a debtor. Every borrower is assigned an internal
or external rating. There are eight classes for non-defaulting loans and two classes for defaulting/doubtful loans. The internal
classification corresponds to the standard rating scale of both Moody’s Investors Service and Standard & Poor´s and is carried out in
several steps. Changes in the key balance sheet figures or other information, such as the level of indebtedness in the case of Federal
and local government authorities, can lead to continuous changes in ratings. Ratings must be reassessed at least once a year. Where
an external rating by S & P, Moody’s or Fitch/IBCA is available, the least favourable rating of these agencies is used. Thus, the assets
in the banking book and off-balance-sheet transactions are classified completely by credit standing and collateralisation. Furthermore,
the credit risk is presented as value at risk and the return on risk-adjusted capital (RORAC) is calculated for individual asset classes.
The following table shows the portfolio composition (assets and contingent liabilities in the form of guarantees and other offbalance-sheet
commitments) classified by rating categories – before taking into account collaterals and the netting of balance sheet
items:
31.12.2001 31.12.2000
in EUR m Volume Proportion Volume Proportion
AAA 2,633 22 % 1,886 20 %
AA 2,780 23 % 2,242 23 %
A 3,109 26 % 2,882 30 %
BBB 1,865 15 % 1,428 15 %
BB 1,241 10 % 753 8 %
B 186 2 % 192 2 %
CCC 229 2 % 188 2 %
D 8 0 % 18 0 %
Aggregate 12,051 100 % 9,590 100 %
(63) OPERATIONAL RISKS. Operational risks incur losses that are due to the inadequacy and failure of internal procedures, human
resources and systems or external circumstances and thus include fraud, mistakes, insufficient documentation, computer errors,
computer crashes, legal risks, etc. So far operational risks cannot be assessed by means of a standard procedure as is the case with
market and credit risks. Investkredit, however, tries to define a method according to which such risks may be identified, assessed by
means of a uniform standard, reported and minimised or avoided altogether. Therefore, it is essential to document all incurred losses,
to create internal monitoring systems, as well as redundant computer systems and to take care of the necessary insurance coverage.
The future equity accord (Basel II) will require a certain amount of equity to cover for operational risks.
(64) INFORMATION ON EMPLOYEES.
2001 2000
Employees of the Group
Austria 283 268
Abroad 9 3
Aggregate 292 271
The table shows the average number of staff during the financial year, part-time staff being weighted according to the extent of
employment.
64

(65) INFORMATION ON EMOLUMENTS OF AND LOANS TO MEMBERS OF THE POLICY-MAKING BODIES. The following table
contains information on the total emoluments of members of the Board of Management and the Supervisory Board as well as on
severance payments and pensions for members of the Board of Management, senior officers and other staff (including changes in
provisions and reserves):
in EUR m 2001 2000
Total emoluments of:
Active Management Board members 0.9 0.8
Former Management Board members 0.3 0.5
Supervisory Board members 0.1 0.1
Notes
THE BANK FOR CORPORATES
Expenses for severance payments for:
Board of Management, Senior Officers 1.1 0.7
Other employees 0.5 0.3
Expenses for pensions for:
Board of Management, Senior Officers 2.1 -0.9
Other employees 1.2 2.2
As at 31 December 2001, no loans to members of the Board of Management and the Supervisory Board were outstanding. Also
there were no Investkredit guarantees for such persons.
(66) INFORMATION CONCERNING POLICY-MAKING BODIES.
Supervisory Board.
GEISERICH E. TICHY
Chairman
HELMUT ELSNER
Vice-Chairman (from 23 May 2001)
CEO and Chairman of the Board of
Management
Bank für Arbeit und Wirtschaft Aktiengesellschaft
KARL SAMSTAG
Vice-Chairman
Vice-Chairman of the Board of
Management
Bank Austria Aktiengesellschaft
ELISABETH BLEYLEBEN-KOREN
Vice-Chairperson (from 23 May 2001)
Vice-Chairperson of the Board of
Management
Erste Bank der oesterreichischen
Sparkassen AG
KARL FINK
(from 23 May 2001)
Member of the Board of Management
WIENER STÄDTISCHE Allgemeine
Versicherung Aktiengesellschaft
KLAUS HABERZETTL
(to 23 May 2001)
General Manager
BA Private Equity GmbH
HERWIG HUTTERER
FRIEDRICH KADRNOSKA
(from 23 May 2001)
Member of the Board of Management
Bank Austria Aktiengesellschaft
HEINZ KESSLER
CEO and Chairman of the Board of
Management
Nettingsdorfer Papierfabrik
Management AG
STEPHAN KOREN
(from 23 May 2001)
CEO and Chairman of the Board of
Management
Österreichische Postsparkasse AG
KURT LÖFFLER
Executive Manager
ERP-Fund
REGINA PREHOFER
Head of Division Multinational Corporates,
Corporate and Trade Finance
Bank Austria Aktiengesellschaft
KARL SEVELDA
Vice-Chairman (to 23 May 2001)
Member of the Board of Management
Raiffeisen Zentralbank Österreich Aktiengesellschaft
GERHARD TANEW-ILIITSCHEW
Senior Vice President,
Management Services
Raiffeisen Zentralbank Österreich Aktiengesellschaft
KLAUS THALHAMMER
CEO and Chairman of the Board of
Management
Österreichische Volksbanken-AG
WOLFGANG AGLER
Employees‘ representative
GABRIELE BAUER
Employees‘ representative
REGINA FRICK
(to 30 November 2001)
Employees‘ representative
OTTO KANTNER
Employees‘ representative
HERMINE LESSIAK
(from 1 December 2001)
Employees‘ representative
PETER WIMMER
Employees‘ representative
65

THE BANK FOR CORPORATES
Notes
State Commissioner.
ALEXANDER GANCZ
State Commissioner
Director Federal Ministry of
Finance
KURT BAYER
Deputy State Commissioner
Head of Department
Economic Policy and Integration
Federal Ministry of Finance
Board of Management.
ALFRED REITER
CEO and Chairman of the Board of Management (to 31 December 2001)
WILFRIED STADLER
Member of the Board of Management (to 31 December 2001)
CEO and Chairman of the Board of Management (from 1 January 2002)
KLAUS GUGGLBERGER
Member of the Board of Management (from 1 January 2002)
(67) EVENTS AFTER THE BALANCE SHEET DATE. In January 2002, both Investkredit and Kommunalkredit, respectively, issued
the largest volume of bonds ever, increasing the volume of issues to more than EUR 1 bn. The consolidated enterprise VBV drei
sold the Heiligenstädter Lände complex.
(68) THE TRANSITION TO IAS. The primary objective of IAS financial statements is to provide investors with information regarding
an enterprise’s financial position and performance. On the other hand, the main emphasis in financial statements pursuant to the
Austrian Commercial Code is on the protection of creditors. These differing goals result in differences in accounting methods and
also in reporting.
Risk provisions. Risk provisions are shown openly on the assets side as a reduction, according to usual international practice.
Trading assets and liabilities. Trading portfolio items which are contained in several different balance sheet items pursuant to the
Austrian Commercial Code are summarized under IAS rules in Trading assets or Trading liabilities. These items also contain the fair
values of derivative financial instruments.
Financial investments. The item of financial investments covers equity investments, securities serving as financial assets as well as
securities in the liquidity reserve. Securities in current assets which are valued under the Austrian Commercial Code at the lower of
cost and market value are stated under IAS at fair value.
Derivative transactions. By application of IAS 39, derivatives are treated differently according to their category. Derivatives in the
trading portfolio are attributed to trading assets or liabilities. They are accounted for at their fair value, which is a deviation from the
practice under the Austrian Commercial Code. Derivatives in the banking book are treated, depending on their purpose, as fair value
hedges, cash flow hedges or macrohedges, and considerable differences arise vis-à-vis the Austrian Commercial Code through
accounting at fair value.
Reserves for personnel purposes. Reserves for pensions and similar commitments are based according to the Austrian Commercial
Code on the statistical accumulation procedure and under the IAS on the dynamic defined benefit obligations procedure. Future
developments of salaries and pensions are taken into account in the calculation. The discount factor is oriented according to the
capital market.
Deferred taxes. According to the Austrian Commercial Code, deferred tax liabilities that arise through differences between the
result under commercial law and the tax result are entered as liabilities, while there is an option for the entry of deferred assets on the
assets side. Pursuant to IAS 12, deferred taxes are formed according to temporary balance sheet differences. Deferred tax assets or
liabilities therefore arise differently under the IAS balance sheet approach and the Austrian tax assessment system – irrespective of
the time of their release.
66

Equity capital. Equity held by outside parties is entered in a separate balance sheet item. The Bank’s own shares are shown in the
trading portfolio but are deducted from equity capital for the calculation of profit per share. The equity capital item includes the
hedge reserve, which contains the changes in derivative transactions of the banking book. Changes in the fair value of real-estate
investments which have a neutral effect and are due to first consolidations are shown in equity capital pursuant of IAS 40.
Real-estate investment. Real estate that is not used for the Bank’s own business operations and is not leased is entered according
to the Austrian Commercial Code at acquisition cost and according to IAS 40 at fair value. Equally according to IAS, changes in fair
value are entered with effect on results.
Notes
THE BANK FOR CORPORATES
The Board of Management of Investkredit Bank AG
Wilfried Stadler Klaus Gugglberger
Vienna, February 2002
67

THE BANK FOR CORPORATES
Audit report
Audit report according to IAS and audit certificate
according to § 245a Austrian Commercial Code.
We have audited the accompanying Consolidated Financial Statements of Investkredit Bank AG, Vienna,
which comprise the Balance Sheets as at 31 December 2001 and 31 December 2000, and the Income
Statements, the Cash flow Statements, the Statements of Changes in Equity and the Notes for the
financial years from 1 January 2001 to 31 December 2001 and from 1 January 2000 to 31 December
2000. These consolidated financial statements are the responsibility of the management. Our
responsibility is to express an opinion on these Consolidated Financial Statements based on our audit.
We have conducted our audit in conformity with accounting principles applicable in Austria. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the Consolidated Financial Statements are free of material misstatements. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the Consolidated Financial Statements.
An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall consolidated financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Consolidated Financial Statements give a true and fair view in all material respects
of the financial position of Investkredit Bank AG, Vienna, and its subsidiaries as at 31 December 2001
and 31 December 2000 and of the results of its operations and its cash flows for the financial years 1
January 2001 to 31 December 2001 and 1 January 2000 to 31 December 2000 in accordance with
the International Accounting Standards (IAS).
Under Austrian law, an audit of the Consolidated Management Report has to be conducted and it has
to be certified whether the legal requirements for the exemption from the preparation of consolidated
accounts according to Austrian law are met.
We confirm that the Management Report is consistent with the Consolidated Financial Statements
and that the legal requirements for exemption from the presentation of consolidated accounts according
to Austrian law are met.
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Wilhelm Kovsca
Chartered Accountants and Tax Consultants
Vienna, 21 February 2002
Martin Wagner
68

REPORT OF THE SUPERVISORY BOARD.
Report of the Supervisory Board
In the year 2001, the Supervisory Board and its Committees performed the duties entrusted to them
under the law and the Statutes. The Board of Management informed the Supervisory Board regularly
on the progress of business and the situation of the Bank. The resolutions submitted for adoption and
important principles and individual questions were discussed in detail at six meetings of the Supervisory
Board, six meetings of the Loans Committee and one meeting of the Accounts Review Committee in
preparation for approval of the annual financial statements.
THE BANK FOR CORPORATES
The accompanying annual financial statements and the management discussion have been examined
by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna. The final
result of the audit gave no cause for objection, so that the auditor has issued an unqualified opinion.
The financial statements 2001 including the Notes, in keeping with International Accounting Standards
(IAS), and the management discussion have been examined by KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna. The audit gave no cause for objection
and the legal requirements were fully met. In the opinion of the auditors, the financial statements
give a true and fair view in all material respects of the financial position of Investkredit and its subsidiaries
as of 31 December 2001 and 31 December 2000 and of the profit or loss and cash flows in the
financial years 2001 and 2000, in conformity with the International Accounting Standards. The auditors
confirm that the consolidated financial statements meet the legal requirements for exemption from
the obligation to present a consolidated financial statement under Austrian law. The representatives
of the auditors took part in the Supervisory Board meeting of 20 March 2002 that was convened for
approval of the financial statements and were available to answer questions from members of the
Supervisory Board.
The Supervisory Board has noted and given its assent to the results of the audit, has endorsed the
2001 financial statements, the management discussion and the proposal for the distribution of the
profit and has thus given its approval pursuant to § 125 (2) of the Austrian Stock Corporation Act. The
Supervisory Board has also noted and given its assent to the result of the audit of the consolidated
financial statements.
In the course of its meeting of 18 September 2001, the Supervisory Board took notice of the wish
expressed by the CEO, Alfred Reiter, to retire at year-end after 26 years of meritorious service with the
bank. At the meeting of 27 September 2001, Wilfried Stadler who has heretofore been successfully
active as a member of the Board of Management, was unanimously elected Chairman of the Board of
Management. At the same meeting, Klaus Gugglberger was selected from the circle of suitably qualified
departmental managers to membership and appointed to the Board of Management.
The Supervisory Board
Geiserich E. Tichy
Chairman
Vienna, 20 March 2002
69

THE BANK FOR CORPORATES
Glossary
GLOSSARY OF IMPORTANT TECHNICAL TERMS.
Assessment basis according to the Austrian Banking Act (BWG). Total of the riskweighted assets, off-balance-sheet and special
off-balance-sheet items of the banking book, calculated according to the Austrian Banking Act. See Risk assets.
Asset backed securities (ABS). Documentary evidence of payment entitlements in tradable securities. Asset backed securities arise
through the combination of certain financial assets (securitization).
Associates. Enterprises on whose business policy decisive influence can be exercised. They are accounted for under the equity or the
cost method.
Austrian Banking Act (BWG). The Austrian Banking Act, as amended by Federal Law Gazette BGBl. I 97/2001.
Austrian Commercial Code (HGB). The Austrian Commercial Code as amended by Federal Law Gazette BGBl. I 98/2001.
Available for sale. A category of securities that function as a liquidity reserve.
B2B. Business-to-business. E-commerce transactions between corporates.
B2C. Business-to-consumer. E-commerce transactions between corporates and consumers.
Banking book. Includes all items not attributed to the trading book.
Basel II. Shorthand for the New Basel Capital Accord.
BlS capital ratio. Index of internationally active banks for underpinning their credit risks (risk-weighted assets including off-balancesheet
transactions) and market risks with the capital required under banking supervisory regulations (core capital, supplementary
own funds and Tier 3 capital; capital as defined by the Bank for International Settlements – BIS). The minimum standard for the ratio
of equity capital to risk-weighted assets and the market risk items multiplied by the factor of 12.5 is 8%. A minimum standard of 4%
is prescribed for the ratio of core capital to risk-weighted assets.
Capital adequacy costs. Costs per commitment/credit rating arising under capital adequacy requirements. Like standard risk costs,
they are a fixed element in the calculation of margins.
Capital adequacy directive. EU Directive on the appropriate provision of equity capital, in particular with regard to market risks
arising out of the trading activities of banks and securities firms.
Capital market. Market for long-term investment and borrowing of capital, see also Money market.
Capital resources. Capital resources as defined in the Austrian Banking Act comprise paid-in capital, capital generated as well as
differences and minority interests of other shareholders resulting from capital consolidation (= core capital / Tier 1), supplementary
and subordinated capital (Supplementary elements / Tier 2) and reclassified Tier 2 capital (= Tier 3 capital, chiefly short-term subordinated
liabilities).
Cash flow hedge. Microhedge for the protection of cash flows out of balance-sheet items.
Cash flow statement. Calculation and disclosure of flows of payment resources which a bank has generated or consumed in a
financial year out of current business activity, investment activity and financing activity. In addition, the cash holdings at the beginning
of the financial year are compared with the amount at the end of the year.
Categories of equity investments. Equity investments are classified as fully consolidated enterprises if they are controlled and
significant. If they are not controlled but are significantly influenced and are significant, they are accounted for under the equity
method, while all other equity investments are recognized in the balance sheet at the carrying amount and in the income statement
at the dividend distributed.
Clean price. Price of a financial instrument without provision for deferred interest.
Confidence level. Probability that a potential loss lies within a range that is stated as value at risk; the Investkredit Group calculates
it at 99%.
Core capital (Tier 1). Paid-in capital and capital generated as well as differences arising on capital consolidation, less intangible
assets.
Core capital ratio. Core capital divided by the assessment basis (including 12.5 times the trading book requirement).
Corporate Bond. Securitized form of capital market financing.
Corporate lending. Services of Investkredit in the segments of corporate lending, corporate finance, equity investment financing
and consulting as well as asset management.
70

Cost-income ratio. Index of the cost-efficiency of enterprises under IAS: general administrative expenses as a proportion of income
(the total of net interest income, net fee and commission income, net trading result and net financial investment result).
Credit default swap. A credit derivative, similar in structure to a conventional guarantee. One party (secured party) makes a
recurrent payment to the other party (transferor of title) that is essentially determined according to the nominal value of a financial
instrument (e.g. a bond) and the rating of the relevant address. In the event of default, the transferor makes good the loss.
Credit derivatives. Instruments with which credit risks are transferred. They neither change nor re-establish the original credit
relations of the counterparts (the parties disposing of the credit risks).
Credit equivalent. Also called credit risk equivalent. Procedure for translating volatile claims against customers for purposes of
comparability into an equivalent, constant claim over time with regard to the risk content. The credit equivalent consists of the
current commitment, a share of unused credit lines and, in the case of derivatives, sometimes a surcharge for the possible future
increase in the claim. It also corresponds to the amount for the relevant regulatory credit risk (risk-weighted assets), which must be
underpinned with equity capital.
CreditMetrics. A J.P. Morgan method and data for the calculation of credit risk, see http://new.riskmetrics.com/products/data/, a
further development of RiskMetrics.
Credit risk. The danger that customers will not meet their contractually agreed payment commitments. The credit risk includes
credit, sovereign and settlement risks.
Credit Value at Risk (Credit VAR). Maximum possible default with a given probability.
Derivatives. Derivative instruments: financing instruments whose valuation is mainly derived from the price, price fluctuations and
price expectations of a basic instrument (for example, shares, bond issues, foreign currency, indices). The chief derivatives are swaps,
options and futures.
Dirty price. Price of a financial instrument including provision for deferred or accrued interest.
Dividend per share. The dividend per share proposed to the Annual General Meeting.
Early stage financing. Financing of the early phase in the development of a corporate, from financing the basic concept to the
commencement of production and marketing.
Earnings per share. According to IAS, an index that compares the profit for the year after tax (less the result accounted for by
shareholders outside the Group) to the average number of ordinary shares. In addition to earnings per share, adjusted earnings per
share are shown if the number of shares has increased or can increase owing to the recognition of drawing rights (”dilution effect”).
In its trading portfolio, Investkredit temporarily holds its own shares only in its capacity as a market-maker to ensure the Vienna Stock
Exchange’s ability to function. Therefore, such shares are treated as shares outstanding.
Electronic banking. Banking transactions via the Internet or other electronic networks or through the exchange of data carriers.
Expected default frequency (EDF). The probability of default of a debtor within a particular period of time (as a rule, 1 year).
Exposure. The amount that can be lost by a bank in connection with a loss from a risk incurred, for example, the default of a
borrower.
Fair value. The amount or price at which assets or liabilities could be traded between knowledgeable, willing parties in an arm’s
length transaction. The fair value is regularly identical with the market price.
Fair value hedge. Microhedge to protect the fair value of balance-sheet items.
FLORAX bond. Variable-interest bond, the interest on which is tied to a reference rate, e.g. EURIBOR.
Foreign exchange swap. Agreement between two contracting parties to exchange capital and interest payments in different
currencies.
Forward rate agreements (FRAs). Agreements between two contracting parties fixing the interest rate for a future period and an
agreed nominal amount (not an exchange of capital).
Fully consolidated enterprises. Related enterprises are fully consolidated if they are not insignificant. In the context of full
consolidation, assets, liabilities, earnings and expenses are fully incorporated in the consolidated financial statement after deduction
of consolidation items.
Fund of funds. Securities fund that invests in other funds. For reasons of risk diversification, a fund of funds may not invest more
than 20% of its assets in a single target fund (among the Investkredit investment funds, i2V-Select is a fund of funds).
Futures. Listed contracts standardized with regard to amount, quality and date of delivery in which an item traded in the money,
capital, precious metals or foreign exchange market is to be delivered or purchased at the price determined by the stock exchange.
Frequently, in such contracts (for example, on the basis of share indices), an adjusting payment is due in order to fulfil the existing
commitment (instead of the physical delivery or purchase of securities).
Glossary
THE BANK FOR CORPORATES
71

THE BANK FOR CORPORATES
Glossary
Hedging. Procedure under which an existing risk item is neutralized by a countervailing transaction.
Held to maturity. Category of securities that are assigned to fixed assets and are held until they fall due.
IAS. International Accounting Standards: accounting rules in the development of which international associations of accountants
and experts cooperate under the leadership of the International Accounting Standards Committee. The purpose is comparable
worldwide accounting and publicity and the processing of relevant information for a broad public, in particular, investors. The rules
include not only general accounting principles but also, currently, 40 standards, and are becoming accepted as an EU-wide system for
financial statements.
Index-linked notes. Bonds, the interest on which is tied to a stock exchange index.
Interest-rate risk. Risk of a reduction in revenue or an increase in costs and a loss of value resulting from a change in interest rates.
Interest-rate swap. Agreement between two contracting partners to exchange interest payments in one and the same country or
currency over a particular period of time (not an exchange of capital).
Internal rating. Rating of a corporate by the bank, see also Rating.
Investment grade. AAA (S&P) / Aaa (Moody’s) to BBB- (S&P) / Baa3 (Moody’s) ratings. The default risk is low in this range.
Investments accounted for under the equity method. Significant but not controlled equity investments are recognized in the
consolidated balance sheet at the share of own funds. The share of profits or losses for the year is entered in the consolidated income
statement.
Liability concept. Under the balance-sheet-oriented liability method, deferred taxes are regarded as liabilities to or claims against
the tax authorities.
Macrohedge. Protection of a portfolio of financial instruments that as a rule contains several derivatives.
Market-to-market valuation. Valuation of financial instruments at current fair prices, independently of acquisition costs and
including unrealized price gains.
Market capitalization. Value of all shares as at year-end.
Market risk. Danger of a loss in value arising through unexpected changes in fair prices (interest, share prices, exchange rates, prices
of goods), before the items affected can be closed or protected.
MBI. Management Buy-In. Acquisition of a business by an external management with the support of a financing bank and usually of
a financing investor.
MBO. Management Buy-Out. Acquisition of a corporate by the management with the support of a financing bank and usually of a
financial investor.
Mergers and acquisitions (M&A). Combinations or purchases and sales of corporates.
Mezzanine financing. Chiefly, subordinated financing that takes on functions similar to equity capital. Mezzanine capital occupies
a position between equity and borrowing in the financing structure.
Microhedge. Protection of a financial instrument by a derivative.
Migration probability. The probability that an corporate’s rating will deteriorate, improve or remain stable over a year.
Minimum capital requirements. Banks must have equity capital backing for at least 8% of their risk-weighted assets.
Money market. A market for the short-term investment or borrowing of money, see also Capital market.
Net trading result. Balance of earnings and expenses from a bank’s own trading in securities, financial instruments (in particular,
derivatives), foreign currency and precious metals that are valued at fair prices (market-to-market valuation). This item also includes
that part of current interest, dividends and refinancing components that is to be attributed to trading activities.
New Basel Capital Accord. Comprehensive approach to the minimum capital requirements of banks, prepared by the Basel Committee
on Banking Supervision, first published as a consultation paper in 1999. The 600-page second version is divided into seven technical
documents, see also: Basel II.
Non-investment grade. BB+ (S&P) / Ba1 (Moody’s) to D ratings. Investments in this range (e.g. high-yield bonds or junk bonds) carry
a higher default risk.
Online banking. Transaction of banking business via electronic networks (Internet) also known as electronic banking.
Operational risk. The risk of direct or indirect losses resulting from the failure or inadequacy of internal procedures, human error,
system failure or external events.
Option. The right to purchase (purchase option/call) a particular item (for example, securities or currency) from a contracting party
or to sell such item to him (selling auction/put) at a previously agreed price, at a particular time and over a particular period of time.
OTC derivatives. Financial instruments (derivatives) that are not standardized and are not listed on a stock exchange but are traded
directly between market participants – over the counter.
72

Own funds to be taken into account. Total of core capital (Tier 1) and supplementary capital resources (Tier 2), excluding deductions.
This item covers the capital resources required for the banking book (solvency) and is used as a regulatory measure for limiting large
exposures and for other regulatory standards. Tier 3 capital is not part of own funds to be taken into account, and can be used only to cover
the regulatory capital requirement for the trading book and for the open foreign exchange position pursuant to the Austrian Banking Act.
Portfolio. Part or total set of assets (for example, securities, loans, equity investments or real estate). The primary purpose of
portfolio formation is the diversification of risk. Securities: combination of like transactions, in particular of securities and/or derivatives,
according to price-risk considerations.
Price/earnings ratio. The price of an ordinary share as at year-end, divided by earnings per share.
Private equity. Equity capital financing that is directed towards corporates in more mature markets during a period of change
and growth.
Projected unit credit method. Present value pension entitlement procedure. It is a capital accumulation procedure under IAS 19
(revised 1998), according to which the commitment must be recognized at the actuarial present value of the pension entitlement
existing on the financial statements date. A characteristic is that trend assumptions (for example, expected salary increases) must be
taken into account in the case of dynamic pension commitments. The discounting rate is oriented in the light of the interest rates for
bonds issued by corporates with high credit standing.
Quantitative score. Indicator in the Investkredit rating process. It is calculated from key balance sheet figures.
Rating. Standardized assessment of the credit standing of an issuer and its securities by specialized rating agencies, such as Moody’s
Investors Service or Standard & Poor’s.
Rating agency. Agency for the assessment of corporates in terms of ratings; international rating agencies: Moody’s Investors Service
(Moody’s) (US), Standard & Poor’s (S&P) (US), Fitch, Inc. (Fitch IBCA) (US, UK); German rating agencies: EuroRatings AG (Germany),
Creditreform Rating AG (Germany), URA and RS Rating Services AG (Germany).
Related enterprises. Enterprises on whose business policy a controlling influence can be exercised.
Return on assets (ROA). Total return on capital, profit for the year (before tax) divided by average risk-weighted assets.
Return on equity (ROE). Index of the income situation of a corporate, consisting of the profit for the year divided by
average equity.
Risk assets. Total of the assets in the banking book weighted by counterpart risk. See Assessment basis according to the Austrian
Banking Act (BWG).
Risk management. Identification, measurement and control of risks.
RiskMetrics. J.P. Morgan method and data for the calculation of the market risk (interest-rate, currency and share-price risks) see
http://new.riskmetrics.com/products/data/
Risk-weighting. Procedure in which every transaction – on or off the balance sheet – is assigned a percentage weighting that
reflects the estimated credit risk.
RORAC (Return on risk-adjusted capital). Returns divided by the economic capital used.
Securitization. Embodiment of rights (e.g. claims) in securities (e.g. shares and bonds).
Securitized money and capital market financing. Securitized financing instruments as an alternative to large-volume industrial
loans.
Seed capital. Capital for the translation of an idea into realizable results, covering the period up to the determination of the business
concept for a corporate at the establishment stage.
Segment reporting. Disclosure of assets and earnings of a corporate, classified by segments and geographical areas (regions).
Shareholder value. Management concept that is geared to creating sustained increases in the value of a corporate. Strategic and
operational decisions are expected to lead to returns higher than the equity capital costs and thus to increase value for shareholders.
Standard risk costs for credit risks. Risk premiums calculated in advance for lending business. They cover the loss through credit
defaults to be expected within a year, on the basis of historical experience.
Structured financing. Optimization of maturity periods and financing costs with a high degree of individuality, the coordinated use
of loan financing (with the incorporation of aid programmes and interest and exchange rate risk management instruments), equity
capital and mezzanine financing or securitized financing instruments, taking into account tax and company law instruments.
Swap. The exchange of payment flows.
Syndication. Action by Investkredit in relation with structured financing; project-related coordination of syndicate partners (consortia).
System rating. Indicator in the Investkredit rating process. It includes the Quantitative score and current customer information from
the Investkredit information system.
Glossary
THE BANK FOR CORPORATES
73

THE BANK FOR CORPORATES
Glossary
Trading book. Items of a bank’s own trading with financial instruments that it holds for the purpose of resale or has taken over in
order to make short-term use of existing or expected differences between purchase and selling prices or fluctuations in prices and
interest rates. Items outside the trading book are counted in the banking book.
Value-at-risk concept. Procedure for the calculation of a potential for loss arising out of changes in fair prices. Value at risk states
the loss that will not be exceeded under normal market conditions on the assumption of previously determined probability (confidence
level) within a defined liquidity period (for example, one day).
Venture capital. Equity financing directed towards young or newly established businesses with extraordinary growth potential.
Volatility. Index of the change of interest rates or prices over time, in mathematical terms the annualized standard deviation of
interest rates or prices.
74

INVESTOR RELATIONS.
Margot Binder
Phone +43/1/53 1 35-111
Fax +43/1/53 1 35-983
e-mail m.binder@investkredit.at
THE BANK FOR CORPORATES
Hannah Rieger
Phone +43/1/53 1 35-112
Fax +43/1/53 1 35-983
e-mail rieger@investkredit.at
For more information on the business fields, please refer to p. 10
Published by
Investkredit Bank AG
1013 Vienna, Renngasse 10
Phone +43/1/53 1 35-0
Fax +43/1/53 1 35-983
www.investkredit.at
e-mail invest@investkredit.at
Editor
Hannah Rieger
Phone +43/1/53 1 35-112
e-mail rieger@investkredit.at
Information on the financial statements
Julius Gaugusch
Phone +43/1/53 1 35-330
e-mail gaugusch@investkredit.at
Grafic design and layout
CCP, Heye Werbeagentur GmbH
1160 Vienna, Thaliastraße 125B
Artworks
Source: “Worte der Welt“(Words of the World), Investkredit Bank AG, published in-house,
Vienna 2002
For almost half a century, Alfred Reiter (1976 to 2001 member of the Board of Management of
Investkredit Bank AG, 1995 to 2001 CEO and Chairman) has collected over 400 quotations in a
binder. The collection consists of quotations by more than 180 authors from different centuries
and fields and were published by Investkredit Bank AG.
Based on this collection of data, Investkredit has been enlarging the database together with
customers since January 2002 (see www.investkredit.at, “Zitate-Datenbank“)
Printed by
Agens-Werk Geyer + Reisser Druck- und Verlagsgesellschaft m.b.H.,
1051 Vienna, Arbeitergasse 1 – 7
75

THE BANK FOR CORPORATES
GROUP´S INTERNATIONAL LOCATIONS.
Investkredit Bank AG
Renngasse 10
A-1013 Vienna
Phone +43/1/53 1 35-0
Fax +43/1/53 1 35-983
invest@investkredit.at
Kommunalkredit Austria AG
Türkenstrasse 9
A-1092 Vienna
Phone +43/1/31 6 31-0
Fax +43/1/31 6 31-105
kommunal@kommunalkredit.at
Europolis Invest Immobilien
Management GmbH
Renngasse 10
A-1013 Vienna
Phone +43/1/53 1 35-295
Fax +43/1/53 1 35-929
europolis@europolis.at
Investkredit
Frankfurt branch
Lindenstraße 5
D-60325 Frankfurt a. M.
Phone +49/69/78 80 96-0
Fax +49/69/78 80 96-29
invest@investkredit.de
Kommunalkredit
Finance & Leasing s.r.o.
Krakovska 25
CZ-110 00 Praha 1
Phone +420/2/2221-1830
Fax +420/2/2221-0792
p.seiler@kommunalkredit.at
Europolis Invest
Management s.r.o.
Evropská 2590/33c
CZ-160 00 Praha 6
Phone +420/2/33 109-0
Fax +420/2/33 109-311
info@investkredit.cz
Investkredit
Representative office Prague
Evropská 2590/33c
CZ-160 00 Praha 6
Phone +420/2/33 109-324
Fax +420/2/33 109-311
info@investkredit.cz
Europolis Invest
Management Sp. z o.o.
ul. Sienna 39
PL-00-121-Warsaw, Poland
Currently being established
Investkredit
Representative office Warsaw
ul. Sienna 39
PL-00-121-Warsaw, Poland
Currently being established
Investkredit
International Bank p.l.c.
Airways House, High Street
M-SLM15 Sliema, Malta
Phone +356/335 916
Fax +356/335 913
invest@investkredit.com.mt
76

Investkredit Bank AG – Interim Report as of 30 September 2002
including the
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
OF THE INVESTKREDIT GROUP
- U1 -

Zwischenbericht zum 30. September 2002.
Interim Report as of 30 September 2002.
Investkredit Bank AG
1013 Wien, Renngasse 10, Tel. +43/1/53 1 35-0, Fax +43/1/53 1 35-983.
www.investkredit.at, invest@investkredit.at

2DIE BANK FÜR UNTERNEHMEN
Die Investkredit im Überblick. Investkredit at a glance.
DIE INVESTKREDIT IM ÜBERBLICK.
INVESTKREDIT AT A GLANCE.
INVESTKREDIT-AKTIE. INVESTKREDIT SHARES. 30.9.2002 31.12.2001 +/-
Ultimokurs in EUR. Period end price in EUR. 42,10 36,45
Marktkapitalisierung in EUR Mio. Market capitalization in EUR m. 266,6 230,8 +16 %
Kurs/Gewinn-Verhältnis. Price-earnings ratio. 9,7 10,0
Gewinn je Aktie in EUR. 1) Earnings per share in EUR. 1) 4,36 3,65 +19 %
UNTERNEHMENSKENNZAHLEN. KEY FIGURES. 30.9.2002 31.12.2001
Kernkapitalquote. Core capital ratio. 6,2 % 6,8 %
Eigenmittelquote. Total capital ratio. 11,3 % 10,4 %
Zinsspanne 2) . Interest margin 2) . 0,89 % 0,97 %
Cost-Income-Ratio 3) . Cost-income ratio 3) . 42,6 % 41,8 %
Return on Assets 4) . Return on assets 4) . 1,08 % 0,71 %
Return on Equity 5) . Return on equity 5) . 23,3 % 12,2 %
Return on Equity – Konzernüberschuss 6) . 10,8 % 8,4 %
Return on equity – net profit 6) .
1) Annualisiert. Annualized.
2) Zinsüberschuss in Relation zu durchschnittlicher Bilanzsumme. Ratio of net interest income to average total assets.
3) Verwaltungsaufwand in Relation zu Betriebserträgen (Kosten-/Ertragskoeffizient). Ratio of administrative expenses to income.
4) Überschuss vor Steuern in Relation zu durchschnittlichen risikogewichteten Aktiva (Gesamtkapitalrentabilität). Ratio of profit before tax to average risk-weighted assets.
5) Überschuss vor Steuern in Relation zu durchschnittlichem Eigenkapital (Eigenkapitalrendite). Ratio of profit before tax to average equity.
6) Konzernüberschuss in Relation zu durchschnittlichem Eigenkapital (Eigenkapitalrendite nach Steuern). Ratio of net profit to average equity.
ERFOLGSRECHNUNG. 1.1.-30.9. 1.1.-30.9.
INCOME STATEMENT. 2002 2001 +/-
Zinsüberschuss in EUR Mio. Net interest income in EUR m. 83,4 64,8 +29 %
Überschuss vor Steuern in EUR Mio. Profit before tax in EUR m. 44,4 25,4 +75 %
Konzernüberschuss in EUR Mio. Net profit in EUR m. 20,7 17,3 +19 %
AUSGEWÄHLTE ZAHLEN. SELECTED FIGURES. 30.9.2002 31.12.2001 +/-
Bilanzsumme in EUR Mio. Total assets in EUR m. 13.821 11.194 +23 %
Finanzierungen 7) in EUR Mio. Financing 7) in EUR m. 10.245 8.901 +15 %
Kernkapital gemäß BWG in EUR Mio. 350 358 -2 %
Core capital (Tier 1) pursuant to the Austrian Banking Act in EUR m.
Eigenmittel gemäß BWG in EUR Mio. 639 551 +16 %
Own funds (Tier 1+2+3) pursuant to the Austrian Banking Act in EUR m.
Mitarbeiter (Stichtag). Number of employees (as of 30.9.). 350 320 +9 %
7) Forderungen an Kunden, Haftungen und Treuhandkredite sowie Schuldverschreibungen und andere festverzinsliche Wertpapiere von anderen Nichtbanken-
Emittenten. Loans and advances to customers, provision for guarantees and trust loans as well as bonds and other fixed-interest securities of other non-bank issuers.
RATINGS. langfristig. kurzfristig.
long-term. short-term.
Investkredit Bank AG Moody’s Investors Service A1 P-1
Kommunalkredit Austria AG FitchRatings AA- F1+
Moody’s Investors Service Aa3 P-1

Brief des Vorstandes.
SEHR GEEHRTE AKTIONÄRIN, SEHR GEEHRTER AKTIONÄR, SEHR GEEHRTE KUNDEN DER
INVESTKREDIT,
die Ergebnisse der Spezialbanken-Gruppe mit den Marktbereichen Unternehmen, Kommunen und Immobilien
haben sich bis zum 30. September 2002 weiterhin erfreulich entwickelt. In den ersten drei Quartalen ist die
Bilanzsumme insbesondere in Folge der stark expandierenden inländischen Kommunalfinanzierungen um 23 %
auf rund EUR 13,8 Mrd. angestiegen. Auch ertragsmäßig hat sich die Investkredit-Gruppe mit einem auf
EUR 20,7 Mio. verbesserten Konzernüberschuss (+19 % gegenüber den ersten drei Quartalen 2001) deutlich weiter
entwickelt. Die jüngste Studie des unabhängigen Finanzberaters Schwabe, Ley & Greiner – basierend auf einer
Umfrage bei 1.130 Großunternehmen in Österreich – bezeichnet die Investkredit als die Bank mit der „höchsten
allgemeinen Zufriedenheit“. Wie in den Vorjahren belegte die Investkredit Platz 1 in der Kategorie
„Fachkompetenz“ und Platz 2 bei „Offenheit und Partnerschaft“. Die Kundenanteile im Firmenkundengeschäft
mit der Investkredit als zweitgrößter Bank erweisen sich als stabil.
THE BANK FOR CORPORATES
MARKTSITUATION. Anzeichen für eine weltweite Konjunkturerholung sind derzeit kaum zu erkennen. Sinkende
Börsenkurse beeinflussen über Vermögensverluste und gedämpfte Unternehmenserwartungen auch die
Realwirtschaft, die internationale Nachfrage bleibt daher verhalten. Dies findet auch in der Geschäftslage der österreichischen
Sachgüterproduktion einen Niederschlag. Der Produktionswert stagniert im bisherigen Jahresverlauf
(+0,1 %), die Produktionserwartungen wurden nach einem Stimmungshoch im Frühjahr wieder zurückgenommen.
Mit +3,5 % erhöhten sich die österreichischen Exporte im bisherigen Jahresverlauf dynamisch, die
Auftragsbestände liegen um 3,3 % über dem Vorjahr. In Anbetracht der aktuellen konjunkturellen Lage und der
vorsichtigen Wachstumsprognosen für die Wirtschaft ist die zu beobachtende Investitionsneigung der
Unternehmen eher zurückhaltend. Ein gewisser Ausgleich in der Kreditnachfrage ergibt sich für die Investkredit aus
dem Umstand, dass Unternehmen verstärkt dazu übergehen, Liquiditätslinien mittel- und langfristig zu sichern.
INVESTKREDIT-AKTIE. Der Kurs zum 30. September 2002 liegt um 16 % über dem Jahresultimo. Die
Investkredit-Aktie hat sich damit in dem turbulenten Börsenumfeld der letzten Monate als langfristig ausgerichteter
Wert sehr stabil erwiesen.
Investkredit-Aktie in EUR
ATX Prime
Investkredit-Aktie
ATX Prime
ERTRAGSENTWICKLUNG. Die sichtbaren Verbesserungen der Grunderträge haben sich in allen drei Segmenten
fortgesetzt. Der Zinsüberschuss ist daher gegenüber den ersten drei Quartalen 2001 um EUR 18,7 Mio. oder
29 % angestiegen. Auch das Provisionsergebnis, das vor allem durch die Abwicklung der Umweltförderung
beeinflusst ist, hat sich um 35 % auf EUR 5,8 Mio. verbessert. Das gegenüber dem Vorjahr um EUR 7,1 Mio. verschlechterte
Kreditrisikoergebnis von -EUR 10,8 Mio. spiegelt die Konjunktursituation wider. Das Treasury der
Investkredit konnte im dritten Quartal trotz des schwierigen Marktumfelds ein sehr erfreuliches Handelsergebnis
erzielen. In der Gruppe bleibt das Handelsergebnis mit einem Verlust von EUR 2,2 Mio. deutlich hinter dem
Vorjahreswert, da Zinsabsicherungsgeschäfte im Immobiliensegment zu negativen Bewertungen führten. Das
Finanzanlageergebnis von EUR 5,0 Mio. hat sich im dritten Quartal nur unwesentlich gegenüber dem Halbjahr
verändert und weist damit weiterhin deutliche Verbesserungen gegenüber dem Vorjahresvergleichswert auf. Der
3

DIE BANK FÜR UNTERNEHMEN
Brief des Vorstandes.
Verwaltungsaufwand hat sich um 21 % auf EUR 37,1 Mio. erhöht. Im Bereich des Personalaufwands erklärt
sich der Anstieg durch zusätzliche Arbeitsplätze in den innovativen Geschäftsbereichen und deutlich überproportionale
Aufwendungen für die Altersvorsorgen der MitarbeiterInnen – vor allem in Folge der ungünstigen Marktentwicklungen
für die Pensionskassen. Auch die Sachaufwendungen haben sich im Zuge der Expansion des Geschäftsvolumens
um EUR 3,0 Mio. erhöht. Dennoch hat sich das Cost-Income-Ratio mit 42,6 % gegenüber den ersten
drei Quartalen 2001 verbessert. Die Verbesserung des Überschusses vor Steuern um 75 % auf EUR 44,4 Mio.
liegt deutlich über jener des Konzernüberschusses. Dies ist durch die gestiegenen Anteile der Partner an
Tochtergesellschaften erklärbar. Nach Abzug des Aufwandes für Steuern und der Fremdanteile am Ergebnis hat
sich der Konzernüberschuss gegenüber den ersten drei Quartalen 2001 um 19 % auf EUR 20,7 Mio. verbessert.
BILANZSTRUKTUR UND KAPITALENTWICKLUNG. Das Bilanzsummenwachstum um 23 % gegenüber dem
Jahresultimo 2001 auf EUR 13,8 Mrd. ist primär im Zuwachs bei österreichischen Kommunalfinanzierungen
begründet. Die Refinanzierung erfolgte in erster Linie durch Anleiheemissionen. Die verbrieften Verbindlichkeiten,
die zu Beginn des Jahres deutlich erhöht wurden, sind im dritten Quartal praktisch nicht weiter angestiegen. Sie
betragen EUR 9,1 Mrd. (+42 % über dem Jahresultimo 2001). Im Bereich der langfristigen Refinanzierung wurde
zuletzt der im März emittierte Floater aufgrund der guten Nachfrage um EUR 100 Mio. auf nunmehr
EUR 600 Mio. aufgestockt. Die Platzierung erfolgte unter der Federführung der DZ-Bank in Frankfurt. Die
Kernkapitalquote beträgt 6,2 %, die Eigenmittelquote 11,3 %. Zur Stärkung der Eigenmittelausstattung der
Investkredit-Gruppe wurde die HypoVereinsbank mit der Planung und Durchführung einer Kapital-Emission beauftragt.
Die Emission besteht in „hybridem Tier 1 Kapital“, das zur Gänze dem Kernkapital der Investkredit-Gruppe
zugerechnet werden kann und sich vorzugsweise an das Privatpublikum in Deutschland und Österreich wendet.
SEGMENT UNTERNEHMEN. Die Entwicklung der Auszahlungen im mittel- und langfristigen Kreditgeschäft
hat sich auch im dritten Quartal zufriedenstellend entwickelt. Die Nachfrage nach Unternehmensfinanzierungen
insbesondere über die Niederlassung Frankfurt gestaltete sich erfreulich. Über das Kontaktnetz zu internationalen
Partnerbanken konnte die Teilnahme an Syndizierungskrediten weiter ausgebaut werden. Strukturierungsfragen
in der Finanzierung sind wichtige Themen im Gespräch mit den Unternehmenskunden. Die Absicherung
der Liquidität und damit die zukunftssichere vertragliche Gestaltung der Finanzierung wird als immer wichtiger
eingestuft. Der offene Umgang der Bank mit dem Investkredit-Rating von Unternehmen wird von den Kunden
mit Interesse aufgenommen. Der „Rating Report“ der Investkredit, der das individuelle Ratingergebnis transparent
darstellt, ist dabei ein wichtiges Instrument.
Das weltweit schwierige Umfeld führte auch im dritten Quartal zu einem rückläufigen Emissionsvolumen von
Asset Backed Securities. Im Vergleich zum Vorjahr nahmen die Ratingmigrationen von im Markt befindlichen
Wertpapieren zu. Die Bestandspflege des bestehenden ABS-Portfolios und eine Erweiterung des verwendeten
Analyseinstrumentariums hatte daher Vorrang gegenüber Neuinvestitionen. Das gewogene Durchschnittsrating
des ABS-Portfolios hat sich im dritten Quartal aufgrund von Rückführungen von nicht Aaa gerateten ABS-
Tranchen verbessert.
Bei den Corporate Finance Aktivitäten lag der Schwerpunkt des Vertriebs des M&A-Beratungsunternehmens
Europa Consult GmbH auch im dritten Quartal 2002 im Geschäftsbereich Management-Buy-Outs (MBOs) und
Managment-Buy-Ins (MBIs). Der signifikant steigende Deal flow in diesem Bereich spiegelt den Bedarf nach qualifizierten
Beratungsleistungen wider, die nicht nur eine Unterstützung im Transaktionsprozess selbst sondern
auch die Entwicklung umsetzbarer Finanzierungskonzepte umfassen. Als Corporate Finance-Gesamtanbieter verfügt
die Investkredit-Gruppe über ein transaktions- und finanzierungserfahrenes Expertenteam und kann alle
Finanzierungsinstrumente von Beteiligungskapital über Mezzaninkapital bis zum klassischen Langfristkredit aus
dem Haus zur Verfügung stellen. Damit wird eine rasche und zuverlässige Umsetzung der Finanzierung gewährleistet
und die Realisierungschance bei MBO/MBI-Projekten optimiert. INVEST MEZZANIN konnte zwei im zweiten
Quartal zugesagte Projekte nunmehr finalisieren. Während im dritten Quartal im Bereich Private Equity und
Venture Capital nach wie vor ein deutlicher Rückgang der Investitionsvolumina am Markt zu beobachten ist, kann
bei einer Fortsetzung des schwierigen Umfeldes in den nächsten 12 Monaten mit einer steigenden Zahl von
4

Brief des Vorstandes.
Konzernausgliederungen gerechnet werden. INVEST EQUITY geht davon aus, dass noch heuer zwei Transaktionen
im Bereich Private Equity im industriellen Sektor abgeschlossen werden können.
Die anhaltend schlechte Stimmung an den internationalen Börsen und weitere Revisionen der Wachstumsprognosen
nach unten haben das langfristige Zinsniveau deutlich abgeschwächt. Dies ermöglichte den
Unternehmenskunden, ihre Zinsrisken zu attraktiven Konditionen abzusichern. Mit ihrem spezialisierten Know
How im Bereich der Zinsderivate stellt die Investkredit dafür eine Reihe von individuell passenden Instrumenten
zur Verfügung. Andererseits führt die Stimmung an den internationalen Aktienbörsen dazu, dass sich
der Schwerpunkt der Veranlagungsgeschäfte von den Investkredit-Investmentfonds zu konventionellen
Veranlagungsformen wie Anleihen und Termineinlagen verlagert. So betrug der Stand an Termineinlagen bei der
Investkredit International Bank p.l.c. in Malta per Ende September EUR 110 Mio. Damit konnte das erfreuliche
Niveau des Vorjahres gehalten werden.
THE BANK FOR CORPORATES
SEGMENT KOMMUNEN. Durch Begebung einer Ergänzungskapitalanleihe zu sehr günstigen Konditionen wurden
im dritten Quartal die anrechenbaren Eigenmittel der Kommunalkredit um rund EUR 40 Mio. auf EUR 193 Mio.
aufgestockt. Mit der strategischen Fokussierung auf das Angebot intelligenter Finanzierungsprodukte ist die
Kommunalkredit weiterhin erfolgreich: Mit weiteren strukturierten Finanzierungen mit der öffentlichen Hand in
Österreich, US-Lease-Geschäften im B-Loan-Bereich und dem Abschluss von Garantien für eine polnische Stadt
zugunsten der Europäischen Investitionsbank (EIB). Damit ist die Kommunalkredit für die EIB der bevorzugte
Partner für derartige Garantien in Polen. Auch in der Schweiz, dem zweiten „Heimmarkt“ der Kommunalkredit,
wird die Marktpräsenz kontinuierlich weiter ausgebaut. Weitere Aktivitäten im dritten Quartal: Die
Kommunalkredit International Bank, Zypern, nahm in Limassol ihre Geschäftstätigkeit auf (Schwerpunkte:
Internationale öffentliche Finanzierungen mittels Wertpapiertransaktionen, Teilnahme an Syndizierungen) und in
Warschau wurde eine Kommunalkredit-Tochtergesellschaft gegründet (die Kommunalkredit Polska Sp. z o.o.)
SEGMENT IMMOBILIEN. Europolis Invest hat im dritten Quartal die Akquisition der Büroimmobilie Sienna Center
im Zentrum Warschaus abgeschlossen. Mit einem Investitionsvolumen von rund USD 60 Mio. wurde damit eine
weitere sehr gut vermietete Büroimmobilie erworben. Zu den Mietern zählen unter anderem Nokia, Oracle und
Servier. Die Gesamtbürofläche der Europolis-Gruppe beträgt derzeit über 100.000 m 2 . Die Leerstandsrate liegt
bei 3 %. Nach der Überflutung Prags im Ausmaß eines 500jährigen Hochwassers mussten sowohl der Zeitplan
für die Fertigstellung des Projektes River City Prague als auch die Struktur der Projektfinanzierung und die
Marketingstrategie angepasst werden. In Budapest wurde für das Objekt City Gate der Mietvertrag von Nokia bei
gleich bleibender Miethöhe, jedoch mit einer reduzierten Fläche bis Ende des Jahres 2008 verlängert. Die
Tochtergesellschaft Europolis Invest Management Sp. z o.o. in Warschau wurde mit der Aufnahme von zusätzlichem
Personal weiter planmäßig ausgebaut.
WILFRIED STADLER
KLAUS GUGGLBERGER
AUSBLICK. Die preisbestimmte Wettbewerbsfähigkeit sollte es den Industrieunternehmen in Österreich erlauben,
verbliebene internationale Impulse auch im weiteren Jahresverlauf zu nutzen. Im Zuge der erwarteten
Konjunkturerholung wird sich auch die Investitionsnachfrage langsam beleben, da aufgeschobene Ersatzinvestitionen
nachgeholt werden müssen und auch die Aufbauarbeiten nach dem Hochwasser Investitionen erfordern. Die
gerade in einem schwierigen Marktumfeld erfreuliche Geschäftsentwicklung der Investkredit-Gruppe sollte sich
damit auch im vierten Quartal fortsetzen. Aufbauend auf den Ergebnissen der ersten drei Quartale sollte der Return
on Equity gegenüber dem Jahresergebnis 2001 spürbar verbessert und der Gewinn je Aktie gesteigert werden.
5

6DIE BANK FÜR UNTERNEHMEN
Letter from the Board of Management.
DEAR SHAREHOLDER, DEAR INVESTKREDIT CUSTOMER,
The results of our specialised banking group with its corporate, local government and real estate market
segments have continued to improve most satisfactorily in the period up to 30 September 2002. Total assets
increased in the first nine months by 23% to around EUR 13.8 billion thanks to strong growth in domestic local
government finance. There was also a significant improvement in the Investkredit Group’s profits with consolidated
net profit rising to EUR 20.7 million (up by 19% compared to the same period in 2001). The latest study
by the independent financial consultancy, Schwabe, Ley & Greiner – based on a poll of 1,130 major Austrian
corporates – shows Investkredit to be the bank giving the “highest level of overall satisfaction”. As in previous
years, Investkredit came first in the „Technical Competence” category and second in “Openness and Partnership”.
Investkredit, Austria’s second largest bank in corporate business, has maintained a stable market share.
THE MARKET SITUATION. At present, there are hardly any signs of a global recovery. Falling share prices affect
the real economy as a result of diminishing wealth and corporates lowering their forecasts; demand therefore
remains muted at an international level. This also has an effect on the business of Austrian companies producing
manufactured goods. Production has stagnated in the year to date (+0.1%); after sentiment reached a peak in
the spring, forecasts for production went back down again. Austrian exports have risen by a dynamic 3.5% in
the year to date; order books are up by 3.3% compared to the previous year. In view of the current economic
situation and the cautious forecasts for growth, there tends to be little willingness to invest on the part of corporates.
Investkredit sees some compensation in the effect on demand for corporate lending in that corporates
are increasingly tending to secure their medium- and long-term lines of liquidity.
INVESTKREDIT SHARES. The share price as of 30 September is 16% higher than at the turn of the year. In the
turbulent markets of recent months, this shows Investkredit shares to be a very stable long-term investment.
Investkredit shares in EUR
ATX Prime
Investkredit shares
ATX Prime
INCOME DEVELOPMENT. Improvements in underlying earnings can be seen in all three segments. Accordingly,
net interest income has risen by EUR 18.7 million or 29% compared to the first nine months of 2001. Net fee
and commission income, above all influenced by implementation of schemes to promote the environment, has
improved by 35% to EUR 5.8 million. The EUR 7.1 million drop in net credit risk result to –EUR 10.8 million is
a reflection of the economic situation. Investkredit’s treasury showed a very respectable trading result in the third
quarter despite the difficult markets. The Group’s trading result showed a loss of EUR 2.2 million, well down
on the figure for the previous year, as interest rate hedges in the real estate segment resulted in negative valuations.
Net financial investment result of EUR 5 million was not significantly different in the third quarter to the
end of the first half and so continues to show significant improvements on the comparable figure for the previous
year. General administrative expenses rose by 21% to EUR 37.1 million. On the personnel expenses side,
an explanation for the rise may be found in the additional jobs created in the innovative areas of business and in
the disproportionate expenses for retirement and employee benefits – above all as a result of the effect of unfavourable
market developments on the pension funds. Following the expansion of business volume, operating

Letter from the Board of Management.
expenditure also went up by EUR 3 million. Nevertheless, the cost-income ratio of 42.6% was better than for the
first three quarters of 2001. The 75% rise in profit before tax to EUR 44.4 million is well above that for net profit.
The explanation for this lies in the increase in partners’ shares in subsidiaries. After taxes and minority interests,
net profit improved in comparison with the first nine months of 2001 by 19% to EUR 20.7 million.
BALANCE SHEET STRUCTURE AND CAPITAL DEVELOPMENT. Compared to the end of 2001, the 23% growth
in total assets to EUR 13.8 billion is primarily based on the growth in Austrian local government finance.
Refinancing was mainly achieved by issuing bonds. Debt evidenced by certificates that rose significantly at the
beginning of the year hardly went up at all in the third quarter. They amounted to EUR 9.1 billion (up by 42%
compared to the end of 2001). On the long-term refinancing side, the amount of the floater issued in March
increased by EUR 100 million to its current level of EUR 600 million as a result of strong demand. DZ Bank in
Frankfurt lead-managed the placement. The core capital ratio amounts to 6.2% and the total capital ratio
to 11.3%. To improve the Investkredit Group’s level of equity, we have given HypoVereinsbank a mandate to
plan and carry out a new issue. The issue consists of “hybrid Tier 1 capital”, that can be entirely allocated to the
Investkredit Group’s core capital and is directed preferably at private German and Austrian investors.
THE BANK FOR CORPORATES
CORPORATES. The volume of medium- and long-term loans in the third quarter also developed satisfactorily.
Demand for loans to corporates, particularly through the Frankfurt branch, shaped up very nicely. Our network
of contacts with international partner banks enabled us to further build up our share of the syndicated loan business.
In financing, structural questions are an important feature of discussions with corporate customers. The
ability to secure liquidity and consequently a contractually binding level of finance for the future is steadily growing
in importance. Customers appreciate the open way the bank deals with its Investkredit Rating of corporates.
Investkredit’s Rating Report, clearly showing the results of an individual rating, is an important tool for this.
The difficult global environment led to a further drop in the volume of asset-backed securities issued in the
third quarter. Compared to the previous year, there was an increase in the number of changes in the rating
of securities in the market. Looking after the existing ABS portfolio and working on the instruments used for
analysis therefore took priority over new investments. As a result of a drop in the number of ABS tranches not
rated Aaa, the weighted average rating of the ABS portfolio improved in the third quarter.
On the corporate finance side in the third quarter, the M&A consultancy, Europa Consult GmbH, concentrated
once again on MBOs and MBIs. The significant increase in deal flow in this area reflects the demand for qualified
advisory services that not only support the actual process of the transaction but also include creating financing
concepts that can be implemented. As a provider of all kinds of corporate finance, the Investkredit Group has a
team of experts experienced in deals and in financing; it is able to offer on its own every kind of financial instrument
from equity capital through mezzanine capital to classical long-term loans. This guarantees that we are
able to offer finance speedily and reliably and optimises the chances of MBO and MBI projects succeeding. INVEST
MEZZANIN has now finalised two projects that it had agreed to in the second quarter. Whilst the third quarter
showed a further drop in the amounts invested in the private equity and venture capital markets, we expect a
continuation of these difficult market conditions over the next 12 months to lead to an increase in the number
of spin-offs. INVEST EQUITY assumes that there are two private equity transactions in the industrial sector that it
can still finalise before the end of the year.
The continuing poor market sentiment on stock exchanges around the world and further downward adjustments
of growth forecasts have considerably lowered the long-term level of interest rates. This has enabled corporate
customers to hedge their interest rate risk at attractive conditions. With its specialised know-how in the field of
interest rate derivatives, Investkredit offers a range of individually tailored instruments. On the other hand, the
sentiment on international stock exchanges has pushed Investkredit’s investment funds into concentrating their
investments on conventional forms of investment such as bonds and fixed deposits. The level of time deposits
with Investkredit International Bank p.l.c. in Malta as of the end of September accordingly stood at EUR 110 million.
This matches the pleasing level achieved in the previous year.
7

8DIE BANK FÜR UNTERNEHMEN
Letter from the Board of Management.
LOCAL GOVERNMENT. A supplementary capital bond issue at very favourable conditions increased the level
of Kommunalkredit’s eligible own funds by around EUR 40 million to EUR 193 million. Kommunalkredit has continued
to be successful by strategically focusing on offering intelligent financing products: these include structured
loans to the public sector in Austria, US leases in the B loan sector and setting up guarantees for a Polish city
in favour of the European Investment Bank (EIB). This makes Kommunalkredit EIB’s preferred partner for these
kinds of guarantee in Poland. Kommunalkredit’s market presence in Switzerland, its second “home market”, also
continues to grow. Additional activities in the third quarter include: Kommunalkredit International Bank, Cyprus
opened its doors for business in Limassol (concentrating on financing the public sector internationally by means
of securities transactions and participating in syndicated loans) and a Kommunalkredit subsidiary was established
in Warsaw (Kommunalkredit Polska Sp. z o.o.).
REAL ESTATE. Europolis Invest completed its acquisition in the third quarter of a commercial property called
Sienna Center in the centre of Warsaw. It thus acquired a very well let office property for an investment of around
USD 60 million. Amongst others, tenants include Nokia, Oracle and Servier. The Europolis Group’s total office
space now exceeds 100,000 square metres. Only 3% is standing empty. Following the highest flooding in Prague
in 500 years, the timetable for completing the River City Prague project, as well as the structuring of the project
finance and the marketing strategy, have all had to be put back. In Budapest, Nokia extended its rental agreement
for the City Gate property until the end of 2008 with the rent unchanged but for a smaller space. The buildup
of the subsidiary, Europolis Invest Management Sp. z o.o. in Warsaw continued to plan with the hiring of
additional staff.
THE OUTLOOK. The price-competitiveness of Austrian industrial corporates should enable them to continue to
take advantage of any remaining international impulses over the remainder of the year. Following the expected
economic upswing, investment demand should also begin to perk up, as corporates will have to catch up with
delayed capital expenditure on replacing equipment, and the rebuilding work following the floods will also require
financing. We can therefore expect the Investkredit Group’s good performance in such difficult market conditions
to continue in the fourth quarter. Building on the results of the first nine months, ROE compared to net
profit for 2001 should show a noticeable improvement and earnings per share should rise.
Mag. Dr. Wilfried Stadler
Mag. Klaus Gugglberger

Gewinn- und Verlustrechnung. Income statement.
GEWINN- UND VERLUSTRECHNUNG PER 30. SEPTEMBER 2002
DER INVESTKREDIT-GRUPPE.
INVESTKREDIT GROUP INCOME STATEMENT AS OF 30 SEPTEMBER 2002.
ERFOLGSRECHNUNG IN EUR 1.000. NOTES 1.1.-30.9. 1.1.-30.9. +/-
INCOME STATEMENT IN EUR 1,000. 2002 2001
Zinsen und ähnliche Erträge. Interest and similar income. 860.076 766.100 12 %
Zinsen und ähnliche Aufwendungen. Interest and similar expenses. -776.642 -701.316 11 %
Zinsüberschuss. Net interest income. (2) 83.433 64.783 29 %
Provisionserträge. Fee and commission income. 9.589 7.482 28 %
Provisionsaufwendungen. Fee and commission expenses. -3.806 -3.184 20 %
Provisionsergebnis. Net fee and commission income. (3) 5.783 4.297 35 %
Kreditrisikoergebnis. Net credit risk result. (4) -10.826 -3.743 >100 %
Handelsergebnis. Trading result. (5) -2.195 1.472 -249 %
Finanzanlageergebnis. Net financial investments result. (6) 5.031 -7.444 -168 %
Verwaltungsaufwand. General administrative expenses. (7) -37.100 -30.581 21 %
Sonstiger betrieblicher Erfolg. Other operating results. (8) 270 -3.387 -108 %
Außerordentliches Ergebnis. Extraordinary result. 0 0 -
Überschuss vor Steuern. Profit before tax. 44.396 25.399 75 %
Ertragsteuern. Tax on income. -11.080 -2.971 >100 %
Überschuss nach Steuern. Profit after tax. 33.316 22.428 49 %
Fremdanteil am Überschuss. Minority interests. -12.626 -5.094 148 %
Konzernüberschuss. Net profit. (1) 20.690 17.333 19 %
THE BANK FOR CORPORATES
Für die Berechnung des annualisierten Gewinns je Aktie wurde der Konzernüberschuss zu der in diesem Zeitraum durchschnittlich
in Umlauf befindlichen Aktienanzahl von 6,33 Mio. (Vorjahresvergleichsperiode unter Berücksichtigung des Aktiensplitts ebenfalls
6,33 Mio.) in Bezug gesetzt. The annualized profit per share was calculated by dividing the Group profit by the average number
of shares outstanding in the period, namely, 6.33 million (comparative figure for the previous year, also 6.33 million, allowing for
share splitting).
IN EUR. 1.1.-30.9. 1.1.-30.9.
IN EUR. 2002 2001
Annualisierter Gewinn je Aktie. Annualized earnings per share. 4,36 3,65
Zum 30. September 2002 waren ebenso wie im Vorjahr keine ausübbaren Wandel- oder Optionsrechte im Umlauf. Der unverwässerte
Gewinn je Aktie entspricht damit dem verwässerten Gewinn je Aktie. On 30 September 2002, as in the previous year, no
exercisable conversion or option rights were outstanding. Thus, the undiluted profit per share is equal to the diluted profit per share.
9

DIE BANK FÜR UNTERNEHMEN
Gewinn- und Verlustrechnung. Income statement.
GEWINN- UND VERLUSTRECHNUNG IM QUARTALSVERGLEICH.
INCOME STATEMENT: QUARTERLY COMPARISON.
ERFOLGSRECHNUNG IN EUR 1.000. 3. Quartal 4. Quartal 1. Quartal 2. Quartal 3. Quartal +/-
INCOME STATEMENT IN EUR 1,000. 2001 2001 2002 2002 2002 3. Quartal
3 rd quarter 4 th quarter 1 st quarter 2 nd quarter 3 rd quarter 3 rd quarter
2001 2001 2002 2002 2002
Zinsüberschuss. 24.791 32.153 30.268 26.515 26.650 +8 %
Net interest income.
Provisionsergebnis. 1.262 695 1.465 1.754 2.564 >100 %
Net fee and commission income.
Kreditrisikoergebnis. -1.691 -4.794 -6.569 -3.194 -1.063 -37 %
Net credit risk result.
Handelsergebnis. -70 1.547 1.042 -1.133 -2.104 >100 %
Trading result.
Finanzanlageergebnis. -1.969 -14.580 2.829 3.159 -956 -51 %
Net financial investments result.
Verwaltungsaufwand. -10.307 -13.294 -11.624 -12.300 -13.175 +28 %
General administrative expenses.
Sonstiger betrieblicher Erfolg. -4.840 6.679 5.659 -3.887 -1.502 -69 %
Other operating results.
Außerordentliches Ergebnis. 0 0 0 0 0 -
Extraordinary result.
Überschuss vor Steuern. 7.176 8.405 23.070 10.913 10.414 +45 %
Profit before tax.
Ertragsteuern. -1.495 -639 -7.575 -3.144 -361 -76 %
Tax on income.
Überschuss nach Steuern. 5.681 7.766 15.495 7.768 10.053 +77 %
Profit after tax.
Fremdanteil am Überschuss. -1.049 -1.967 -5.604 -2.954 -4.069 >100 %
Minority interests.
Konzernüberschuss. 4.632 5.799 9.892 4.814 5.984 +29 %
Net profit.
ÜBEREINSTIMMUNGSERKLÄRUNG MIT IAS.
Der vorliegende Zwischenbericht gemäß IAS für die Investkredit-Gruppe wurde auf Basis der vom International Accounting
Standards Committee (IASC) herausgegebenen IAS und deren Interpretationen durch das Standard Interpretations Committee
(SIC) erstellt. Es wurden die gleichen Bilanzierungs- und Bewertungsmethoden wie bei der Erstellung des Jahresabschlusses 2001
angewandt.
10
STATEMENT OF COMPLIANCE WITH IAS.
The present interim report for the Investkredit Group according to the International Accounting Standards (IAS) was prepared
on the basis of the Standards issued by the International Accounting Standards Committee (IASC) and their interpretations
by the Standard Interpretations Committee (SIC). The same accounting principles were applied as in the preparation of the
financial statements 2001

Zwischenbilanz. Interim balance sheet.
ZWISCHENBILANZ DER INVESTKREDIT-GRUPPE ZUM 30. SEPTEMBER 2002.
INVESTKREDIT GROUP INTERIM BALANCE SHEET AS
OF 30 SEPTEMBER 2002.
AKTIVA IN EUR 1.000. NOTES 30.9.2002 31.12.2001 +/-
ASSETS IN EUR 1,000.
Barreserve. 16.058 15.106 6 %
Cash and balances with central banks.
Forderungen an Kreditinstitute. 1.198.569 887.105 35 %
Loans and advances to banks.
Forderungen an Kunden. (9) 7.416.323 6.086.376 22 %
Loans and advances to customers.
Risikovorsorgen. (10) -79.952 -69.049 16 %
Risk provisions for loans and advances.
Handelsaktiva. (11) 167.024 93.765 78 %
Trading assets.
Finanzanlagen. (12) 4.630.638 3.831.483 21 %
Financial investments.
Sachanlagen. 368.197 288.786 27 %
Property and equipment.
Übrige Aktiva. (13) 103.758 60.783 71 %
Other assets.
Bilanzsumme. (21) 13.820.615 11.194.354 23 %
Total assets.
THE BANK FOR CORPORATES
PASSIVA IN EUR 1.000. NOTES 30.9.2002 31.12.2001 +/-
LIABILITIES AND EQUITY IN EUR 1,000.
Verbindlichkeiten gegenüber Kreditinstituten. (14) 2.457.080 2.810.094 -13 %
Amounts owed to banks.
Verbindlichkeiten gegenüber Kunden. (15) 475.682 686.532 -31 %
Amounts owed to customers.
Verbriefte Verbindlichkeiten. (16) 9.134.113 6.453.065 42 %
Debts evidenced by certificates.
Rückstellungen. (17) 48.580 44.591 9 %
Provisions.
Übrige Passiva. (18) 917.298 517.421 77 %
Other liabilities.
Nachrangkapital. (19) 376.324 291.104 29 %
Subordinated capital.
Anteile in Fremdbesitz. 160.760 133.344 21 %
Minority interests.
Eigenkapital. 250.779 258.203 -3 %
Equity.
Bilanzsumme. (21) 13.820.615 11.194.354 23 %
Total liabilities and equity.
11

DIE BANK FÜR UNTERNEHMEN
Eigenkapitalveränderungsrechnung/Kapitalflussrechnung. Statement of changes in equity/Cash flow statement.
EIGENKAPITALVERÄNDERUNGSRECHNUNG.
STATEMENT OF CHANGES IN EQUITY.
IN EUR 1.000. 30.9.2002 31.12.2001 +/- +/-
IN EUR 1,000. 2002 2001
Gezeichnetes Kapital. 46.000 46.000 0 0
Subscribed capital.
Kapitalrücklagen. 61.047 61.047 0 0
Capital reserve.
Gewinnrücklagen i.e.S. 152.445 142.015 10.430 -14.219
Retained earnings.
Hedgerücklage. -23.074 -7.662 -15.411 -16.505
Hedging reserve.
Konzernüberschuss. 20.690 23.133 -2.442 -3.628
Net profit.
Ausschüttung der Investkredit Bank AG. -6.330 -6.330 0 -810
Dividend paid by Investkredit Bank AG.
Eigenkapital insgesamt. 250.779 258.203 -7.424 -35.162
Equity aggregate.
12
KAPITALFLUSSRECHNUNG.
CASH FLOW STATEMENT.
IN EUR 1.000. 1.1.-30.9. 1.1.-31.12.
IN EUR 1,000. 2002 2001
Zahlungsmittelbestand zum Ende des Vorjahres. 15.106 4.780
Cash holdings at the end of the previous year.
Cash Flow aus operativer Geschäftstätigkeit. 83.082 88.030
Cash flow from operating activities.
Cash Flow aus Investitionstätigkeit. -188.436 -277.012
Cash flow from investing activities.
Cash Flow aus Finanzierungstätigkeit. 78.890 88.497
Cash flow from financing activities.
Effekte aus Effects of
Wechselkursänderungen. 0 0
Exchange rate fluctuations.
Änderungen des Konsolidierungskreises. 27.415 110.812
Changes in the group of consolidated enterprises.
Zahlungsmittelbestand zum Ende der Periode. 16.058 15.106
Cash holdings at period end.

ANGABEN ZUR GEWINN- UND VERLUSTRECHNUNG.
INFORMATION ON THE INCOME STATEMENT.
(1) SEGMENTBERICHTERSTATTUNG. SEGMENT REPORTING.
in EUR Mio. Unternehmen. Kommunen. Immobilien. Sonstige. Summe.
in EUR m.
Local
Corporates. government. Real estate. Others. Total.
Notes.
THE BANK FOR CORPORATES
Zinsen und ähnliche Erträge. 348,6 483,5 28,0 0,1 860,1
Interest and similar income.
Zinsen und ähnliche Aufwendungen. -302,3 -459,4 -14,9 0,0 -776,6
Interest and similar expenses.
Zinsüberschuss. 46,3 24,0 13,1 0,0 83,4
Net interest income.
Provisionserträge. 2,6 6,1 0,8 0,0 9,6
Fee and commission income.
Provisionsaufwendungen. -2,4 -1,0 -0,4 0,0 -3,8
Fee and commission expenses.
Provisionsergebnis. 0,2 5,2 0,4 0,0 5,8
Net fee and commission income.
Kreditrisikoergebnis. -10,4 -0,5 0,1 0,0 -10,8
Net credit risk result.
Handelsergebnis. 1,1 0,1 -3,4 0,0 -2,2
Trading result.
Finanzanlageergebnis. -2,5 7,5 0,0 0,0 5,0
Net financial investments result.
Verwaltungsaufwand. -20,5 -13,6 -3,0 0,0 -37,1
General administrative expenses.
Sonstiger betrieblicher Erfolg. -0,6 0,7 0,1 0,0 0,3
Other operating results.
Außerordentliches Ergebnis. 0,0 0,0 0,0 0,0 0,0
Extraordinary result.
Überschuss vor Steuern. 13,5 23,5 7,3 0,0 44,4
Profit before tax.
Ertragsteuern. -3,3 -7,0 -0,8 0,0 -11,1
Tax on income.
Überschuss nach Steuern. 10,2 16,5 6,5 0,0 33,3
Profit after tax.
Fremdanteil am Überschuss. -1,8 -8,4 -2,4 0,0 -12,6
Minority interests.
Konzernüberschuss. 8,4 8,1 4,1 0,0 20,7
Net profit.
Segmentvermögen. 6.545 6.923 336
Segment assets.
Segmentverbindlichkeiten. 6.396 6.910 133
Segment liabilities.
Durchschnittliches Eigenkapital. 157 56 41 254
Average equity.
Cost-Income-Ratio. 43,1 % 46,4 % 29,4 % 42,6 %
Cost-income ratio.
Return on Equity vor Steuern. 23,3 %
Return on equity before tax.
Return on Equity – Konzernüberschuss. 7,1 % 19,3 % 13,5 % 10,8 %
Return on equity – net profit.
13

DIE BANK FÜR UNTERNEHMEN
Notes.
(2) ZINSÜBERSCHUSS. NET INTEREST INCOME.
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
Zinsertrag. Interest income. 837,6 751,5
Kredit- und Geldmarkt. Lending business and money market. 703,4 617,1
Festverzinsliche Wertpapiere. Fixed-income securities. 115,9 116,6
Aktien und andere nicht festverzinsliche Wertpapiere. 8,9 12,1
Shares and other variable-yield securities.
Anteile an verbundenen Unternehmen und Beteiligungen. 9,3 5,7
Interests in unconsolidated related enterprises.
Zinsaufwand. Interest expenses. -773,9 -698,6
Einlagen. Deposits. -520,9 -459,7
Verbriefte Verbindlichkeiten. Debts evidenced by certificates. -239,7 -228,0
Nachrangkapital. Subordinated capital. -13,3 -10,9
Ergebnis aus dem Miet- und Leasinggeschäft. 19,8 11,9
Earnings from rental and leasing business.
Leasingerträge. Leasing earnings. 3,2 1,5
Mieterträge. Earnings from rentals. 19,3 13,1
Afa auf Leasinggegenstände und Sonstige Aufwendungen Leasing. -0,3 -1,1
Depreciation of property leased and other leasing expenses.
Afa auf Mietgegenstände. Depreciation of property rented. -2,4 -1,6
Insgesamt. Aggregate. 83,4 64,8
(3) PROVISIONSERGEBNIS. NET FEE AND COMMISSION INCOME.
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
Kreditgeschäft. Lending business. 0,6 0,3
Wertpapiergeschäft. Securities business. 0,8 0,3
Zahlungsverkehr. Payment transactions. -0,6 -0,2
Abwicklung der Umweltförderungen und Sonstiges Dienstleistungsgeschäft. 5,0 4,0
Environmental aid transactions and other services business.
Insgesamt. Aggregate. 5,8 4,3
(4) KREDITRISIKOERGEBNIS. NET CREDIT RISK RESULT.
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
Zuführung/Auflösung von Risikovorsorgen. Allocation to/Release of risk provisions. -10,9 -3,8
Direktabschreibungen. Direct write-offs. 0,0 0,0
Eingänge aus abgeschriebenen Forderungen. 0,1 0,1
Amounts received against loans and advances written off.
Währungsanpassungen. Currency adjustments. 0,0 0,0
Insgesamt. Aggregate. -10,8 -3,7
(5) HANDELSERGEBNIS. TRADING RESULT.
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
14
Wertpapierhandel. Securities trading. 0,6 -0,6
Devisenhandel. Currency trading. -0,2 0,9
Zinsderivate. Interest derivatives. -2,8 0,8
Währungsderivate. Currency derivatives. 0,0 0,0
Wertpapierderivate. Securities derivatives. 0,2 0,4
Sonstige Finanzinstrumente. Other financial instruments. 0,0 0,0
Insgesamt. Aggregate. -2,2 1,5

(6) FINANZANLAGEERGEBNIS. NET FINANCIAL INVESTMENTS RESULT.
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
Ergebnis aus Wertpapieren. Net result from securities. 8,0 -5,6
Ergebnis aus Anteilen an verbundenen Unternehmen, assoziierten und sonstigen Beteiligungen. -3,0 -1,9
Net result from investments in subsidiaries and associates and other investments.
Insgesamt. Aggregate. 5,0 -7,4
(7) VERWALTUNGSAUFWAND. GENERAL ADMINISTRATIVE EXPENSES.
Notes.
THE BANK FOR CORPORATES
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
Personalaufwand. Personnel expenses. -23,5 -19,9
Sachaufwendungen. Other administrative expenses. -11,6 -8,5
Abschreibungen und Wertberichtigungen auf Sachanlagen. -2,0 -2,2
Depreciation and amortization of property and equipment.
Insgesamt. Aggregate. -37,1 -30,6
(8) SONSTIGER BETRIEBLICHER ERFOLG. OTHER OPERATING RESULTS.
in EUR Mio. 1.1.2002- 1.1.2001-
in EUR m. 30.9.2002 30.9.2001
Sonstige betriebliche Erträge. Other operating earnings. 2,9 3,8
Abschreibungen auf immaterielle Anlagewerte. Depreciation on intangible assets. -1,0 -0,9
Sonstige Steuern. Other tax. -0,2 -0,5
Sonstige betriebliche Aufwendungen. Other operating expenses. -1,3 -5,8
Insgesamt. Aggregate. 0,3 -3,4
ANGABEN ZUR BILANZ.
INFORMATION ON THE BALANCE SHEET.
(9) FORDERUNGEN AN KUNDEN. LOANS AND ADVANCES TO CUSTOMERS.
in EUR Mio. Täglich fällig. Andere Forderungen.
in EUR m. Repayable on demand. Other.
30.9.2002 31.12.2001 30.9.2002 31.12.2001
Inländische Kunden. Austrian customers. 49 41 5.468 4.293
Unternehmen. Corporates. 35 17 2.058 1.864
Öffentliche Hand. Public sector. 0 17 3.260 2.275
Sonstige. Other. 14 7 151 154
Ausländische Kunden. Foreign customers. 5 12 1.894 1.741
Unternehmen. Corporates. 5 12 1.223 1.141
Öffentliche Hand. Public sector. 0 0 655 587
Sonstige. Other. 0 0 15 12
Insgesamt. Aggregate. 54 53 7.362 6.033
(10) RISIKOVORSORGE. RISK PROVISIONS.
in EUR Mio.
in EUR m. 30.9.2002 31.12.2001
Stand zum 1.1. As at 1.1. 69 64
Zuführung (+)/Auflösung (-) von Vorsorgen. 11 8
Allocation to (+)/Release of (-) risk provisions for loans and advances.
Zweckbestimmte Verwendung. Earmarked use. 0 -4
Währungsanpassungen. Currency adjustments. 0 0
Stand zum 30.9.2002. As at 30.9.2002. 80 69
15

DIE BANK FÜR UNTERNEHMEN
Notes.
(11) HANDELSAKTIVA. TRADING ASSETS.
in EUR Mio.
in EUR m. 30.9.2002 31.12.2001
Schuldverschreibungen und andere festverzinsliche Wertpapiere. 28 21
Bonds and other fixed-income securities.
Aktien und andere nicht festverzinsliche Wertpapiere. 1 5
Shares and other variable-yield securities.
Positive Marktwerte aus derivativen Finanzinstrumenten. 138 68
Positive fair values from derivative financial instruments.
Sonstige Handelsbestände. Other trading portfolio items. 0 0
Insgesamt. Aggregate. 167 94
(12) FINANZANLAGEN. FINANCIAL INVESTMENTS.
in EUR Mio.
in EUR m. 30.9.2002 31.12.2001
Schuldverschreibungen und andere festverzinsliche Wertpapiere. 3.953 3.257
Bonds and other fixed-income securities.
Aktien und andere nicht festverzinsliche Wertpapiere. 197 177
Shares and other variable-yield securities.
Sonstige Wertpapiere und Derivate zu Absicherungszwecken. 392 296
Other securities and derivatives for hedging purposes.
Anteile an nicht konsolidierten verbundenen Unternehmen. 13 30
Investments in unconsolidated related enterprises.
Anteile an at equity bewerteten Unternehmen. 62 59
Investments in enterprises accounted for under the equity method.
Sonstiger Anteilsbesitz. Other investments. 12 13
Insgesamt. Aggregate. 4.631 3.831
Davon Umlaufvermögen. Of which available for sale. 1.753 2.101
(13) ÜBRIGE AKTIVA. OTHER ASSETS.
in EUR Mio.
in EUR m. 30.9.2002 31.12.2001
Immaterielle Anlagewerte. Intangible assets. 8 6
Latente Steuern. Deferred taxes. 6 8
Sonstige Vermögensgegenstände. Other assets. 60 30
Rechnungsabgrenzungsposten. Deferred items. 31 16
Zinsabgrenzung. Deferred interest. 0 0
Insgesamt. Aggregate. 104 61
(14) VERBINDLICHKEITEN GEGENÜBER KREDITINSTITUTEN. AMOUNTS OWED TO BANKS.
in EUR Mio. Täglich fällig. Andere Verbindlichkeiten.
in EUR m. Repayable on demand. Other liabilities.
30.9.2002 31.12.2001 30.9.2002 31.12.2001
Inländische Kreditinstitute. Austrian banks. 47 24 1.100 1.401
Ausländische Kreditinstitute. Foreign banks. 3 9 1.307 1.375
Insgesamt. Aggregate. 50 33 2.407 2.777
16

(15) VERBINDLICHKEITEN GEGENÜBER KUNDEN. AMOUNTS OWED TO CUSTOMERS.
in EUR Mio. Täglich fällig. Andere Verbindlichkeiten.
in EUR m. Repayable on demand. Other liabilities.
30.9.2002 31.12.2001 30.9.2002 31.12.2001
Inländische Kunden. Austrian customers. 62 41 324 554
Unternehmen. Corporates. 55 13 182 194
Notes.
THE BANK FOR CORPORATES
Öffentliche Hand. Public sector. 0 0 17 16
Sonstige. Other. 7 28 125 345
Ausländische Kunden. Foreign customers. 5 4 85 87
Unternehmen. Corporates. 5 4 30 31
Öffentliche Hand. Public sector. 0 0 0 4
Sonstige. Other. 0 0 55 53
Insgesamt. Aggregate. 67 45 409 642
(16) VERBRIEFTE VERBINDLICHKEITEN. DEBTS EVIDENCED BY CERTIFICATES.
in EUR Mio.
in EUR m.
Davon börsenotiert.
Thereof listed.
30.9.2002 31.12.2001 30.9.2002 31.12.2001
Begebene Schuldverschreibungen. Bonds issued. 9.065 6.380 8.623 6.017
Begebene Geldmarktpapiere. Money market paper issued. 0 0 0 0
Sonstige verbriefte Verbindlichkeiten. 70 73 0 0
Other debts evidenced by certificates.
Insgesamt. Aggregate. 9.134 6.453 8.623 6.017
(17) RÜCKSTELLUNGEN. PROVISIONS.
in EUR Mio.
in EUR m. 30.9.2002 31.12.2001
Rückstellungen laufende Steuern. Provisions for current taxes. 12 8
Rückstellungen latente Ertragsteuern. Provisions for deferred taxes on income. 3 2
Personalrückstellungen. Provisions for personnel expenses. 31 30
Sonstige Rückstellungen. Other provisions. 2 4
Insgesamt. Aggregate. 49 45
(18) ÜBRIGE PASSIVA. OTHER LIABILITIES.
in EUR Mio.
in EUR m. 30.9.2002 31.12.2001
Handelspassiva. Trading liabilities. 120 78
Rechnungsabgrenzungsposten. Deferred items. 41 44
Leasingverbindlichkeiten. Leasing liabilities. 0 0
Sonstige Verbindlichkeiten. Other liabilities. 750 389
Ausschüttung der Investkredit Bank AG. Dividend paid by Investkredit Bank AG. 6 6
Insgesamt. Aggregate. 917 517
(19) NACHRANGKAPITAL. SUBORDINATED CAPITAL.
in EUR Mio.
in EUR m.
Davon börsenotiert.
Thereof listed.
30.9.2002 31.12.2001 30.9.2002 31.12.2001
Genussrechtskapital. Profit participation rights capital. 0 0 0 0
Ergänzungskapital. Supplementary capital. 163 100 108 88
Sonstige nachrangige Verbindlichkeiten. 213 191 191 190
Other subordinated liabilities.
Insgesamt. Aggregate. 376 291 299 278
17

DIE BANK FÜR UNTERNEHMEN
Notes.
(20) DERIVATIVE FINANZGESCHÄFTE. DERIVATIVE FINANCIAL TRANSACTIONS.
in EUR Mio. Nominalbetrag per 30.9.2002.
in EUR m. Nominal amount at 30.9.2002.
Restlaufzeit. Remaining maturity. Markt- Markt- Vergleich Handels-
Bis 1 1 bis 5 Über 5 Summe. werte werte Summe. bestand.
Jahr. Jahre. Jahre. Total. positiv. negativ. Compari- Trading
Up to 1 1 to 5 Over 5 Fair value Fair value son total. portfolio.
year. years. years. 30.9.2002 positive. negative. 31.12.2001 30.9.2002
Zinsbezogene Geschäfte. 4.787 9.702 6.357 20.847 413 -640 16.301 5.826
Interest-rate related business.
Währungsbezogene Geschäfte. 1.241 1.016 424 2.682 63 -72 2.593 822
Currency related business.
Wertpapierbezogene Geschäfte. 4 5 18 26 - - 14 -
Securities related business.
Sonstige Geschäfte. 138 2.698 1.967 4.803 112 -124 3.825 -
Other business.
Insgesamt. Aggregate. 6.170 13.421 8.766 28.358 588 -837 22.732 6.648
(21) MARKTWERTBILANZ. FAIR VALUE BALANCE SHEET.
in EUR Mio.
Marktwerte. Fair value.
in EUR m. Bilanzwert. Bankbuch. Available Handels- Micro Summe.
Value of Banking for sale. buch. hedge. Total.
item. book. Tradingbook.
Barreserve. Cash and balances with central banks. 16 16 0 0 0 16
Forderungen an Kreditinstitute. 1.199 1.174 20 0 13 1.206
Loans and advances to banks.
Forderungen an Kunden. 7.416 7.174 283 0 164 7.621
Loans and advances to customers.
Risikovorsorge. Risk provisions for loans and advances. -80 -80 0 0 0 -80
Handelsaktiva. Trading assets. 167 0 0 167 0 167
Finanzanlagen. Financial investments. 4.631 2.917 1.594 0 160 4.670
Sachanlagen. Property and equipment. 368 368 0 0 0 368
Übrige Aktiva. Other assets. 104 104 0 0 0 104
Aktiva. Assets. 13.821 11.673 1.896 167 336 14.072
Verbindlichkeiten gegenüber Kreditinstituten. 2.457 1.824 0 0 659 2.483
Amounts owed to banks.
Verbindlichkeiten gegenüber Kunden. 476 421 0 0 55 476
Amounts owed to customers.
Verbriefte Verbindlichkeiten. 9.134 7.700 0 0 1.544 9.244
Debts evidenced by certificates.
Rückstellungen. Provisions. 49 49 0 0 0 49
Übrige Passiva. Other liabilities. 917 683 0 120 82 886
Nachrangkapital. Subordinated capital. 376 299 0 0 129 427
Anteile in Fremdbesitz. Minority interests. 161 161 0 0 0 161
Eigenkapital. Equity. 251 348 0 0 0 348
Passiva. Liabilities and equity. 13.821 11.484 0 120 2.469 14.072
18

(22) MARKTRISIKEN AUS HANDELSAKTIVITÄTEN. MARKET RISKS ARISING OUT OF TRADING ACTIVITIES.
Value at Risk 1) in EUR Mio. Durchschnitt. Durchschnitt.
Value at risk 1) in EUR m. Average. Average.
2002 30.9.2002 2001 31.12.2001
Schuldtitel. Debt issues. 0,4 0,7 1,2 1,1
Substanzwerte. Share price risks. 0,1 0,1 0,2 0,3
Währungen. Currency. 0,1 0,3 0,1 0,0
Insgesamt. Aggregate. 0,6 1,1 1,5 1,4
Notes.
THE BANK FOR CORPORATES
1) Konfidenzniveau 99 % 1 Tag Haltedauer. Confidence level 99% 1 day holding period.
(23) ANGABEN ÜBER ARBEITNEHMER. INFORMATION ON EMPLOYEES.
Durchschnittlich beschäftigte MitarbeiterInnen.
Average number of employees. 30.9.2002 31.12.2001
Inland. Austria. 303 283
Ausland. Abroad. 17 9
Insgesamt. Aggregate. 320 292
(24) ORGANE DER INVESTKREDIT BANK AG. POLICY-MAKING BODIES OF INVESTKREDIT BANK AG.
Dem Aufsichtsrat gehörten zum 30. September 2002 folgende Personen an.
On 30 September 2002, the following persons were members of the Supervisory Board:
o. Univ.-Prof. Ing. Dkfm. Dr. Geiserich E. Tichy (Vorsitzender. Chairman); Helmut Elsner, Karl Samstag, Dr. Karl Sevelda
(stellvertretende Vorsitzende. Vice-Chairmen); Dr. Elisabeth Bleyleben-Koren, Dkfm. Karl Fink, Dkfm. Herwig Hutterer,
Mag. Friedrich Kadrnoska, Dr. Heinz Kessler, Mag. Dr. Stephan Koren, Mag. Kurt Löffler, DDr. Regina Prehofer, Dr. Karl Stoss,
Dr. Klaus Thalhammer; vom Betriebsrat delegiert. Employees‘ representatives: Dipl.-Ing. Wolfgang Agler, Gabriele Bauer,
Ing. Otto Kantner, Hermine Lessiak, Peter Wimmer
Den Vorstand bildeten zum 30. September 2002. On 30 September 2002 the Board of Management consisted of:
Dr. Wilfried Stadler (Vorsitzender. Chairman), Mag. Klaus Gugglberger.
In allen Übersichten dieses Berichtes sind Rundungsdifferenzen auf Grund der Verwendung der tatsächlichen Beträge möglich.
In this Report, totals may not add precisely because of rounding.
IMPRESSUM
Medieninhaber, Herausgeber und Verleger. Published by: Investkredit Bank AG, 1013 Wien, Renngasse 10, Tel: +43/1/53 1 35-0.
Redaktion. Editorial team: Mag. Hannah Rieger, Dr. Julius Gaugusch, Graphisches Konzept. Graphic Design: CCP, Heye Werbeagentur GmbH, 1160 Wien,
Thaliastraße 125b. Druck. Printed by: AGENS-WERK Geyer + Reisser, 1051 Wien, Arbeitergasse 1 – 7. Fotos. Photographs: Stefan Badegruber, Wien
OFFENLEGUNG GEM. § 25 MEDIENGESETZ. DECLARATION PURSUANT TO § 25 OF THE AUSTRIAN MEDIA ACT:
Medieninhaber (Verleger): Investkredit Bank AG mit Sitz in Wien. Published by: Investkredit Bank AG, with registered office in Vienna.Unternehmensgegenstand:
Bankgeschäfte zur Finanzierung von Investitionsvorhaben von Unternehmungen überwiegend in Österreich. Purpose of the company: banking services to provide financing
for the planned investments of corporates predominantly in Austria.
ERKLÄRUNG ÜBER DIE GRUNDLEGENDE RICHTUNG: Aktionärs- und Kundeninformation über aktuelle Entwicklungen der Bank.
BASIC PURPOSE OF THE PUBLICATION: Provision of information to shareholders and customers on current developments of the Bank.
19

DIE INVESTKREDIT-GRUPPE.
INVESTKREDIT GROUP.
UNTERNEHMEN.
CORPORATES.
Investkredit Bank AG, Wien,
Vienna mit Standorten in
Frankfurt, Prag, Warschau
with offices in Frankfurt,
Prague, Warsaw
Bank für Unternehmen.
Bank for Corporates.
www.investkredit.at
Investkredit International Bank
p.l.c., Sliema, Malta
Einlagengeschäft in Malta.
Deposit business in Malta.
VBV, Wien, Vienna
Vier Holdinggesellschaften für Leasingfinanzierungen
und Beteiligungen.
Four holding companies for leasing
financing and investments.
INVEST EQUITY 1) , Wien, Vienna
Private Equity Fonds.
Private Equity Funds.
www.investequity.at
INVEST MEZZANIN 2) ,
Wien, Vienna
Mezzanin-Investor für den
Mittelstand.
Mezzanine investor for medium-sized
companies.
www.investmezzanin.at
Europa Consult 2) , Wien, Vienna
Mergers & Acquisitions-
Beratung.
Consulting on Mergers &
Acquisitions.
www.europaconsult.at
ETech Management 2) ,
Wien, Vienna
Europäische F&E-Förderberatung.
Consulting on European R&D subsidies.
www.eurotech.co.at
KOMMUNEN.
LOCAL GOVERNMENT.
Kommunalkredit Austria AG,
Wien, Vienna mit Standorten in
Prag, Warschau with offices in
Prague, Warsaw
Spezialbank für Public Finance.
Specialist Bank for Public Finance.
www.kommunalkredit.at
Kommunalkredit International
Bank Ltd., Limassol, Zypern,
Cyprus
Internationale
Kommunalfinanzierungen.
International Local government finance.
KA Beteiligungsholding GmbH,
Wien, Vienna
KOMMUNALKREDIT
Beteiligungs- und Immobilien
GmbH, Wien, Vienna
Dexia Kommunalkredit Holding
Gesellschaft m. b. H. 1) , Wien,Vienna
Holdinggesellschaften.
Holding companies.
Prvá Komunálna Banka a. s. 1) ,
Zilina, Slowakei, Slovakia
Gemeindefinanzierung
in der Slowakei.
Local government finance
in Slovakia.
www.pkb.sk
IMMOBILIEN.
REAL ESTATE.
Europolis Invest Immobilien
Management GmbH, Wien, Vienna
EUROPOLIS INVEST
Management s.r.o., Prag, Prague
Europolis Management
Sp. z o.o., Warschau, Warsaw
Immobilienveranlagungen.
Real-estate investments.
www.europolis.at
Europolis Holdings und
Objektgesellschaften, Wien,
Prag, Budapest, Warschau
Europolis real estate and
holding companies, Vienna,
Prague, Budapest, Warsaw
32 Gesellschaften für Immobilienveranlagungen
und -entwicklung.
32 companies for real-estate
investment and development.
www.europolis.at
www.rivercity.cz
44 vollkonsolidierte Unternehmen. 44 fully consolidated companies.
1) at-equity konsolidiert. Consolidated at equity.
2) zu Buchwerten konsolidiert. Consolidated at cost.
FINANZMARKTKALENDER 2003. FINANCIAL MARKET CALENDAR 2003.
Eckdaten vorläufiges Ergebnis 2002. Preliminary result for 2002 – Key figures 13. Februar 2003. 13 February 2003
Bilanzpressegespräch 2002. 2002 Accounts press conference 27. März 2003. 27 March 2003
Ergebnis 1. Quartal 2003. 1 st quarter result for 2003 14. Mai 2003. 14 May 2003
Ordentliche Hauptversammlung. Annual General Meeting 14. Mai 2003. 14 May 2003
Ergebnis 1. Halbjahr 2003. 1 st half-year result for 2003 8. August 2003. 8 August 2003
Ergebnis 1.-3. Quartal 2003. 1 st -3 rd quarter result for 2003 7. November 2003. 7 November 2003