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Rabobank and Rothschild establ<strong>is</strong>h global food & agri cooperationAs from 1 January 2009, Rabobank International Holding B.V. and Rothschild <strong>en</strong>tered into a co-operationagreem<strong>en</strong>t in the field of mergers and acqu<strong>is</strong>itions and equity capital markets adv<strong>is</strong>ory in the food & agr<strong>is</strong>ectors on a global bas<strong>is</strong>. Rothschild and Rabobank both have strong global food & agri adv<strong>is</strong>ory franch<strong>is</strong>es inmergers and acqu<strong>is</strong>itions. Un<strong>de</strong>r the agreem<strong>en</strong>t both firms will pool their respective industry knowledge,resources and relationships while expanding their respective geographic reach and cli<strong>en</strong>t base through an<strong>en</strong>hanced breadth of services. In or<strong>de</strong>r to str<strong>en</strong>gth<strong>en</strong> the relationship betwe<strong>en</strong> the two parties, Rabobank alsoacquired a 7.5 per c<strong>en</strong>t. stake in Rothschild Continuation Holdings AG (“RCH”) and a Rabobankrepres<strong>en</strong>tative joined the RCH board of directors.EurekoOn 16 February 2009, Eureko announced that, following consultations with its sharehol<strong>de</strong>rs Rabobank andAchmea Association, it will increase its capital by € 1 billion. Th<strong>is</strong> measure <strong>is</strong> int<strong>en</strong><strong>de</strong>d to increase Eureko’ssolv<strong>en</strong>cy. Rabobank <strong>is</strong> contributing € 400 million to the capital injection; however, th<strong>is</strong> will not increaseRabobank’s relative ownership stake in Eureko.Issue of Capital SecuritiesOn 27 February 2009, Rabobank Ne<strong>de</strong>rland <strong>is</strong>sued € 500 million Perpetual Noncumulative Capital Securitiesand on 27 May 2009, Rabobank Ne<strong>de</strong>rland <strong>is</strong>sued NZ$ 280 million Perpetual Noncumulative CapitalSecurities. On 4 June 2009, Rabobank Ne<strong>de</strong>rland <strong>is</strong>sued U.S.$ 1,368,297,000 Perpetual NoncumulativeCapital Securities in exchange for Rabobank Capital Funding Trust II Trust Preferred Securities and ofRabobank Capital Funding Trust III Trust Preferred Securities. On 4 June 2009, Rabobank Ne<strong>de</strong>rland <strong>is</strong>suedan ad<strong>dit</strong>ional U.S.$ 1,500,000,000 Perpetual Noncumulative Capital Securities, forming part of the sameseries of Capital Securities as <strong>is</strong>sued in connection with the exchange effected on the same date. On 12 August2009, Rabobank Ne<strong>de</strong>rland <strong>is</strong>sued CHF 750 million Perpetual Noncumulative Capital Securities.RatingsOn 22 October 2009, Moody’s Investors Service (“Moody’s”) affirmed Rabobank’s long-term <strong>de</strong>posit ands<strong>en</strong>ior unsecured Aaa ratings. Moody’s rev<strong>is</strong>ed its outlook on these ratings from stable to negative. On 8December 2009, Standard & Poor’s Ratings Services (“S&P”) affirmed Rabobank’s counterparty cre<strong>dit</strong> AAAratings. S&P rev<strong>is</strong>ed its outlook on these ratings from stable to negative.Strategy of Rabobank GroupRabobank’s strategic objectives are set out in its Strategic Framework 2005-2010, which it has be<strong>en</strong>implem<strong>en</strong>ting since its introduction. Following changes in the Dutch banking market that took place in 2008,and the turbul<strong>en</strong>t <strong>de</strong>velopm<strong>en</strong>ts in the international financial markets, Rabobank Group has be<strong>en</strong> consi<strong>de</strong>ringadjustm<strong>en</strong>ts to the framework. Accordingly, at the <strong>en</strong>d of 2008, Rabobank Group began formulatingadjustm<strong>en</strong>t proposals for a rev<strong>is</strong>ed Strategic Framework covering the period 2009-2012. Un<strong>de</strong>r theseproposals, the principles of the framework were refocused and repriorit<strong>is</strong>ed in several areas. Rabobankapproved the new Strategic Framework on 18 March 2009 in its C<strong>en</strong>tral Delegates Assembly.Strategy principlesAs a cooperative, Rabobank priorit<strong>is</strong>es cli<strong>en</strong>ts’ interests, and Rabobank’s structure and processes are focusedaccordingly. Through their influ<strong>en</strong>ce and control, members <strong>en</strong>force d<strong>is</strong>cipline on the cooperative.As an all-finance service provi<strong>de</strong>r, Rabobank Group offers a compreh<strong>en</strong>sive package of financial <strong>product</strong>s andservices. Managem<strong>en</strong>t believes that the diversification within Rabobank Group b<strong>en</strong>efits its financial stability,244

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