Annual Report 2002 (pdf, 1319K) - WestLB

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WestLB Group in the
2002 Financial Year
Key Figures
WESTLB GROUP
2002 2001*
in millions € €
Total assets 265,601 264,049
Business volume 396,916 416,216
Credit volume 261,342 274,217
Certificated liabilities 58,148 54,423
Deposits 182,594 181,555
Capital and reserves 12,861 15,184
Nominal volume of derivatives 2,258,257 2,066,932
Net interest income 1,541 1,995
Net commission income 692 773
Net result from trading operations 177 185
Personnel expenses 1,218 1,354
Other administrative expenses 1,056 1,260
Operating result after provision for risks – 1,580 178
Profit/loss before taxes – 1,668 143
Staff (Banking Group**) 8,779 9,465
* After division and the at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein;
computed figures for WestLB AG Group
** excluding jointly-managed companies
BIS overall ratio 10.1%
BIS core capital ratio 5.8%
Overall ratio according to Principle I 10.5%
Return on equity – 27.9%
Cost-income ratio 86.1%
Ratings Short Term Long Term
Moody’s P-1 Aa1
Standard & Poor’s A-1+ AA+
FITCH Ratings F1+ AAA

Contents
1 Mission Statement
2 The Company
4 A New Force in the Marketplace
7 Milestones 2002
8 Chairman’s Statement
12 Targets
14 Managing Board
16 People and Markets
18 Focus on Solutions
20 Lending Business
22 Specialised Finance
28 Trading
34 Services
38 Equity Investments
41 Landesbanks
42 Sparkassen
44 Public-Sector Clients
46 Bringing People Together
50 Financial Report
52 Statement of Financial Condition
104 Balance Sheet
108 Statement of Income
110 Statement of Changes in Shareholders’ Equity
111 Notes to the Annual Accounts
162 Report of the Supervisory Board
166 Names and Locations
168 Governing Bodies
174 Addresses
178 Business Units
180 Glossary

CLIENTS BUSINESS GROUP
Sparkassen/Public-Sector Clients
Sparkassen/Public-Sector Clients
Corporates
Western Europe
Central/Eastern Europe
Americas
Asia/Pacific
PRODUCTS BUSINESS GROUP
Financing
Central Credit Management
Credits Germany/Europe
Credits America
Credits Asia/Pacific
Financial Markets
Global Financial Markets
WestLB International, Luxembourg
Corporate Finance
Global Specialised Finance
Principal Finance
WestLB Panmure
WestLB Research
WSP Equities
Equity Investments
Equity Investments
Real Estate Clients
Real Estate Clients
Financial Institutions
Europe/Middle East/Africa
Americas
Asia/Pacific
Asset Management
Global Asset Management
Banque d’Orsay
Services
Payments, CashManagement
& Card Services
Global Back Office

A Leap into a New Era.
WestLB AG Has Become Reality.
WestLB AG is a focused commercial bank operating in the competitive European and
international markets as an innovative and powerful player. One of the Bank’s major
strengths is the ability and vision to translate changes and new market requirements into
alternative business strategies, products and services. Under a new structure that is in
line with European competition law, WestLB AG focuses its performance and its ability
to innovate on providing solutions to complex financing tasks for professional clients and
business partners. Building on clarity and transparency, WestLB AG is a reliable banking
partner to companies, institutional investors, public-sector clients, banks and savings banks.
Excellently qualified employees make WestLB AG a nationally and internationally renowned
provider of high-quality financial products and services on which customers can build
their own business perspective.

Vision
A new vision of the future, new freedom to explore new
horizons. Our company remains poised to shape the market
going forward.

The Company An exciting and challenging
year for WestLB. A new profile in the market, a new start
in difficult times. The following chapter summarises the
main cornerstones underpinning the new company as
from 2002.

4
A New Force in the Marketplace —
WestLB AG continues all commercial
activities of the former Westdeutsche
Landesbank Girozentrale as a company
under private law.
A Structure for the Future
On August 30, 2002, WestLB AG emerged
from the former Westdeutsche Landesbank
Girozentrale as an internationally operating,
focused commercial bank that will address
the tasks of the future under a new structure
which is in line with market requirements and
European competition law. WestLB AG is a
wholly owned subsidiary of Landesbank NRW,
a company under public law, through which the
State of North Rhine-Westphalia holds 43.2%
of WestLB. The remaining shares are held by
the Regional Associations of the Rhineland and
Westphalia (11.7% each) and by the Savings
Banks and Giro Associations of the Rhineland
and Westphalia-Lippe (16.7% each). With total
Group assets of € 266 billion, WestLB is one
of the leading German commercial banks
operating on an international scale.
WestLB’s new structure reflects the effects of
the agreement reached between the German
government and the European Commission on
Germany’s public-law banks. By concentrating
all public-mission activities in Landesbank NRW,
the way has been paved for WestLB’s long-term
strategic orientation after the elimination of
institutional liability and guarantor liability in
the year 2005.
The Bank has thus been aligned with the changed
conditions of European economic policy and
can now focus on the challenges of the markets
in a form that is comprehensible to clients,
business partners, investors and analysts alike.
High-Quality Advice and Service
Professional partnership and a direct presence
in the world’s major financial centres form the
basis of WestLB’s range of solution-driven
products and services, which have made the
Bank a market leader in many business segments
such as global project finance and international
trade and commodity finance. The Bank’s mission
to find the best possible solutions for customers’
specific requirements building on performance
and innovation has also made it an important
European equity and bond house and given it
a top position in the European principal finance
and securitisation market. WestLB’s expertise is

The Company People and Markets Financial Report Names and Locations
concentrated in the areas of Financial Structuring,
Equity Solutions, Credit Products, Treasury
& Fixed Income and Asset Management for
companies, institutional investors, savings
banks, banks and public-sector clients.
Building on a regional focus throughout the
world, WestLB provides comprehensive industry
know-how through a sectoral customer service
organisation and global product competence
centres. WestLB thus offers its clients consistent
high-quality service and advice for all financing
and investment requirements – from comprehensive
one-stop support to project-related
individual finance.
Good market performance and pro-active
resource management are the main instruments
of a forward-looking business policy for WestLB.
The resulting increase in the company’s value
benefits customers, employees and owners
alike. After all, WestLB uses its own success
| Sybille Enzweiler Financial Institutions
A good bank is fun. Fun for the customers if they get good service,
and fun for the employees if they jointly create new things and have
good perspectives for the future. At WestLB AG you get everything –
service and new things, perspective and fun. This is why I enjoy
working here. MYBANK
to make ongoing investments in the structural
and technical improvement of the framework
conditions for the development of innovative
financial services and continuous staff training.
This way, WestLB’s advisory services and
financial products translate into sustainable
benefit for customers and business partners.
Member of a Strong Group
As a member of the Savings Banks Finance
Group, WestLB participates in a division of
labour and a cooperation which are organised
according to a simple principle – each task is
performed by the member of the group which
can handle it in the most economic and efficient
manner. On this basis, WestLB acts as the
central institution and product supplier for
the savings banks in North Rhine-Westphalia
and Brandenburg and ensures them access
to the international capital markets. WestLB’s
5

6
cooperation agreements and investments
in the Savings Banks Finance Group are
always geared towards an efficiency-enhancing
concentration of resources. WestLB is a
member of the German Savings Banks and
Giro Association (DSGV) and of the Federal
Association of Public-Sector Banks (VÖB).
Good Corporate Governance
Responsible and transparent action towards
customers, shareholders, employees and the
general public is another key element of WestLB’s
corporate success. After all, an internationally
active company needs the confidence of the
national and international markets to achieve
sustainable and profitable growth.
WestLB’s voluntary corporate governance rules
are largely based on the German Corporate
Governance Code for non-listed companies.
The Supervisory Board, the Managing Board
and the employees of the Bank fully identify
with these rules, which ensure that WestLB is
managed and controlled in line with national
and international standards of good corporate
governance and with a view to achieving a
sustained increase in the company value.
To ensure high consistency across the Bank’s
entire management and controlling system,
the corporate governance rules are also
reflected in the rules of internal procedure
of the Supervisory Board and the Managing
Board.
WestLB actively assumes social responsibility
and has geared its activities to the objectives
of sustainable economic development. WestLB’s
social, cultural and academic commitment
aims to promote intellectual and artistic variety
and social cohesion, especially in North Rhine-
Westphalia, the Bank’s home region.
By signing the Statement by Banks on the
Environment and Sustainable Development of the
United Nations (UNEP), WestLB has joined a
global effort to promote sustainable development.
The statement obliges WestLB to comply with all
regional, national and international environmental
regulations that are applicable to its business
activities and services. Financing commitments
for environmentally relevant projects, for
instance, are subject to a comprehensive audit
of compliance with relevant environmental
requirements. Ecological criteria are reflected
both in the Bank’s credit risk strategy and its
customer credit ratings. International energy
projects, for instance, will be financed only if
they comply with specific local laws as well as
the environmental and social standards of the
World Bank.

Milestones
002
August 30, 2002 – WestLB AG
is incorporated in the Commercial
Registers of Düsseldorf and
Münster.
January – The state government initiates the amendment to the North Rhine-Westphalian Savings Bank
Act, which governs the reorganisation of Westdeutsche Landesbank Girozentrale according to the
parent-subsidiary model. February – The Federal Government and the European Commission reach an
agreement which stipulates that institutional liability and guarantor liability will continue to apply without
restriction up to the elimination of both state guarantees in mid-2005. April – With a view to focusing
on core business activities, WestLB sells its Private Banking unit as well as its 25% interest in Westfälische
Provinzial-Versicherungen. May – The European Commission confirms that the parent-subsidiary model
complies with European competition law. June – The North Rhine-Westphalian parliament adopts
the new Savings Banks Act with a clear majority. August – The amended Savings Banks Act of North
Rhine-Westphalia comes into force and establishes Landesbank NRW. WestLB AG is incorporated in the
Commercial Register. LBS is spun off and is now owned by the savings banks. September – The new
governing bodies of WestLB AG take up their work. The importance of the savings banks for WestLB’s
business policy is highlighted in a new framework agreement. October – With the establishment of
WestLB Covered Bond Bank, WestLB strengthens its position in the growth market for European covered
bonds. The expansion of efficient and profitable business segments is facilitated by the swift realisation
of cost savings. December – The Annual Shareholders’ Meeting of WestLB AG approves a capital increase
of € 1.25 billion. With the agreed sale of WPS Bank (on January 1, 2003) the Bank continues its focus on
core business segments.

Chairman’s Statement
“
In order to prepare well in advance for the period after the
elimination of the state guarantees, the Bank embarked on
an extensive programme of measures aimed at reducing costs
and enhancing efficiency.
The extremely difficult market environment had a significant impact on WestLB AG’s
results in 2002. At the same time we took and implemented important strategic decisions
for the future and above all made good progress in reducing our cost burden.
As a result of the sluggish economy and the slump on the equity markets, the operating
result of the WestLB Group fell to € 366 million. The Bank posted a net loss for the
year before taxes of € 1.668 billion. This was primarily caused by significantly higher
risk provisions, which related to the weak development of the economy and to a large
extent to cases of fraud and balance sheet manipulation. Moreover, we established a
general risk allowance of over € 200 million as additional provision for risks. We also
incurred substantial restructuring expenses. The net loss for the year will be met from
the Group’s reserves.
With the timely implementation of the parent-subsidiary model, the Bank successfully
managed a major challenge. The former Westdeutsche Landesbank Girozentrale has
been split up into three independent institutions: Landesbank NRW, LBS Westdeutsche
Landesbausparkasse and WestLB AG. By concentrating its commercial activities within
WestLB AG, the Bank has clearly positioned itself and laid the foundations for its successful
development when institutional liability and guarantor liability are finally eliminated.
The dispute with the European Commission concerning alleged state aid as a result
of the integration of the Wohnungsbauförderungsanstalt (Wfa) into WestLB in 1992
remains unresolved. The European Court reversed the decision of the European
Commission on the issue of state aid on the grounds of inadequate substantiation,
”

The Company People and Markets Financial Report Names and Locations
and the Commission must now decide again on the matter. In this connection it is especially
important that, following a decision of the European Court of Justice on December 12,
2002, the Bank will be able to implement the decision of the Commission on a non-cash
basis.
In order to prepare well in advance for the period after the elimination of the state
guarantees, the Bank embarked last year on an extensive programme of measures
aimed at reducing costs and enhancing efficiency. WestLB has also sharpened its profile
as a focused commercial bank and withdrawn from business segments which no longer
form part of the Bank’s strategic focus. These include domestic private banking, our
interest in Westfälische Provinzial-Versicherungen and our interest in WPS Bank,
which we sold to the two savings banks associations of North Rhine-Westphalia on
January 1, 2003.
On the cost front, the cost-cutting measures which we introduced have already begun
to bear fruit. We have reduced our headcount by roughly 1,000, with the result that
WestLB is now a good deal closer to its objective of trimming employee numbers by
a minimum of 1,500 by the end of 2003. The streamlining of the domestic and foreign
branch networks, which included the closure of the branches in Bielefeld and Essen,
the centralisation of our back office operations and the reorganisation of domestic loan
processing have significantly improved our cost efficiency.
In the light of the continuing market weakness, we have also implemented comprehensive
cost-cutting measures at WestLB Panmure. In response to the changing conditions on
the equity market, the business will in future be clearly focused on our core competencies
while keeping our pan-European reach. The related restructuring measures, which will
affect an additional 300 employees, will be implemented quickly and become effective
in 2003.
9

05
The strategic focusing on promising business segments paid off in the past year. In
the specialised finance business comprising structured finance, principal finance and
asset backed transactions, we were able to consolidate our market positions thanks to
our acknowledged expertise. Our leading market position in selected business areas
was confirmed once again by numerous awards from international trade magazines,
for example in project finance, commodity finance and bond issuance.
With a view to strengthening our market position in core businesses, we pooled our
know-how further, integrating in particular various trading units with the specialised
finance business. The Structured Finance and Asset Backed Transactions units, for
instance, have been merged in the new Global Specialised Finance business unit and
our expertise in the credit derivatives field has been amalgamated with the credit
activities of the Global Financial Markets business unit. These measures will not only
yield additional synergies but also facilitate client access to our products.
In response to the rapid growth of the European covered bond market, we established
the WestLB Covered Bond Bank in Dublin. Irish covered bonds are an attractive alternative
to the German Pfandbrief for both investors and issuers.
As the central institution for the savings banks, we will intensify our close cooperation
with the savings banks in the future. We have signed a framework agreement with the
North Rhine-Westphalian savings banks mapping out the future cooperation. This will
allow us to exploit the potential afforded by our working partnership with the savings banks
even more effectively through complementary product ranges and joint acquisition
efforts.

The Company People and Markets Financial Report Names and Locations
The years 2002 and 2003 are years of restructuring at the Bank against a background
of difficult prevailing economic conditions. We are nevertheless confident that we will
post a much improved operating result for 2003.
WestLB AG will rigorously continue the process of reducing costs in 2003. We will
also set out the future business model. In order to ensure that the Bank retains the
necessary flexibility in its business policy in the long term when the state guarantees are
eliminated, the future restructuring and strategic initiatives will be strictly determined
by the financial targets we have set ourselves, namely a return on equity of 18% and
a cost-income ratio of 65%. Following the capital increase of € 1.25 billion at the
beginning of 2003, WestLB has almost achieved its target of a core capital ratio of
6.5%; at the same time this was a clear vote of confidence on the part of our owners
in the operational capability of the Bank.
The years 2002 and 2003 are years of restructuring at the Bank against a background
of difficult prevailing economic conditions. We are nevertheless confident that we will
post a much improved operating result for 2003.
We would like to take this opportunity to thank you, our clients, business partners and
owners, for the trust you have placed in us and for the excellent cooperation during the
past year.
Yours,
“
Jürgen Sengera
Chairman of the Managing Board
”
11

12
Targets — Business segments which have
delivered above-average performance will
be expanded in the context of the Bank’s
profitability-driven business policy.
On the Way Forward
In the context of the reorganisation, WestLB
has launched a programme for profit growth
and strict cost management. This programme
will help the Bank ensure its future viability
and pave the way for a competitive rating after
the elimination of institutional liability and
guarantor liability in 2005. This gives the Bank
added scope for offering its customers efficient
and innovative financial solutions in the long
term.
The targets defined for this purpose in the
context of systematic key ratio-based management
are ambitious and challenging – the return
on equity is to rise to 18%, the cost-income
ratio is to be reduced to 65% and the core
capital ratio is to be increased to 6.5%.
In 2002, WestLB came a good deal closer
towards achieving these targets. Considerable
progress was made in improving the cost
base. 2003 will be another year of restructuring
in which additional savings potential will be
exploited. At the same time, the Bank will further
expand profitable and fast-growing business
segments in which it holds excellent market
positions.
The core capital ratio target has already been
largely reached. Thanks to the € 1.25 billion
capital increase made by the owners at the
beginning of 2003, the capital base has been
strengthened significantly.

65%
It is the declared objective of
the Managing Board to reduce the
cost-income ratio to 65%.
18%
Raising the return on equity to 18%
is a key target in the context of systematic
key ratio-based management.
6.5%
The owners and the Managing Board
of WestLB have agreed to raise the
core capital ratio to 6.5%.

14
The Managing Board
Jürgen Sengera
Chairman of the Managing Board since 2001
Responsible for Group Strategy/ Controlling,
Group Auditing, Communications/Economics;
member of the Board since 1984; previously
Head of Organisation/IT, positions in the
Economics Department and Executive Services;
Head of Corporate Planning at Nord/LB;
graduate economist, industrial apprenticeship;
aged 60
Robert Restani
Deputy Member of the Managing Board since
2002 Responsible for Sparkassen/Public-Sector
Clients, Real Estate Clients; formerly member
of the Managing Board of TaunusSparkasse;
various positions at Deutsche Bank AG in Sales
Marketing and Management, Deutsche Bank
Bauspar AG and Private Banking and Corporate
Clients; graduate in business management;
aged 45
Dr. Adolf Franke
Member of the Managing Board since 1994
Corporate Risk Officer; responsible for Credits,
Group Finance, Risk Management Support &
Control; joined WestLB in 1973 and has worked
in International Business, Planning/Controlling/
Balance Sheet, Personnel, Group Steering and
Control; graduate in business management,
Dr. rer. pol., banking apprenticeship; aged 61
Dr. Johannes Ringel
Member of the Managing Board since 1987
Responsible for Corporates, Equity Investments,
Principal Finance; joined WestLB in 1969 and
has worked in the Economics Department,
Planning, Controlling; graduate economist,
Dr. rer. pol.; aged 62

The Company People and Markets Financial Report Names and Locations
Klaus-Michael Geiger
Member of the Managing Board since 2003
Chief Information Officer, responsible for Global
Back Office, Payments, CashManagement & Card
Services, Chief Information Office; previously
member of the Managing Board and Chief
Information and Technology Officer at Dresdner
Bank AG as well as posts in Central Transaction
Processing and Global Chief Operating Officer;
banking apprenticeship; aged 41
Gerhard Roggemann
Member of the Managing Board since 1996
Responsible for Asset Management, Financial
Institutions, WestLB International, Luxembourg;
previously member of the Managing Board of
Nord/LB, posts with J.P. Morgan & Co. in
the Management Committee for Asia/Pacific,
Regional Treasurer Tokyo, Corporate Finance;
lawyer; aged 55
Dr. Manfred Puffer
Member of the Managing Board since 2002
Responsible for Global Financial Markets,
WestLB Panmure, WestLB Research; previously
CFO of Kirch Vermögensverwaltungs GmbH,
CEO at Kirch Pay-TV and posts in the trading
units of HypoVereinsbank AG, Bayerische
Vereinsbank AG, J. Aron & Co (UK)/Goldman
Sachs International and MG Commodity Corp.;
M.A./PhD in social and economic science;
aged 39
Andreas Seibert
Member of the Managing Board since 2001
Human Resources Director; responsible for Global
Specialised Finance, WestLB do Brasil, BEAL
Brussels, Human Resources; previously posts at
WestLB in Structured Finance, Corporate Clients,
International Business Southern Europe and in
Credits at WestLB International, Luxembourg;
graduate in business management, apprenticeship
in wholesale and foreign trade; aged 55
15

Performance
Make the good even better. A mission that requires
a lot from each individual. But a mission
without which no company can master the future.

The Company People and Markets Financial Report Names and Locations
People and Markets Focusing on solutions
is one of WestLB’s main strengths. For its customers, for the
company itself. The following chapter provides an overview of
the course of business in 2002 and the products and services
offered by the individual market segments.

18
Focus on Solutions — Drawing on
our innovative, solution-driven expertise,
WestLB AG provides customers with
forward-looking, state-of-the-art financial
services and products.
Market Position in Core Businesses
Consolidated
Despite extremely difficult market conditions,
WestLB AG provided its customers – corporate
clients, financial institutions, savings banks
and public-sector clients – with a wide range
of financial solutions tailored to their specific
requirements in 2002. Backed by our widespread
product and sector-specific expertise, we were
thus able to meet the financing and investment
challenges posed by the changing requirements
of the market and of our customers.
Demand for credit decreased noticeably as the
economy continued to stagnate. Going forward,
we will focus the traditional lending business
even more closely on risk-return aspects and
on its function as a provider of value-added
products. The persisting weakness on the stock
markets adversely affected our equity-based
business both on the primary and secondary
markets. We have responded to the changed
conditions on the stock markets and are
refocusing our business activities. The bond,
liquidity and foreign exchange markets were
likewise unable to escape the prevailing
uncertainty; issuing volume on the Eurobond
market declined perceptibly. Nevertheless, we
improved our position in the corporate bond
segment and in issues of public-sector clients.
We also strengthened our leading position in
the European syndicated loan market, which
has grown considerably.
In view of a significant consolidation in the
equity investment market, we undertook a
major streamlining of our investment portfolio.
We also made a number of new investments in
medium-sized companies and large corporations.
Our wide range of equity capital products and
solid sector expertise will enable us to seize the
growing opportunities in the German private
equity market as we move forward.
The specialised finance segments were also hit
by the weak development of the economy. We
were nevertheless able to consolidate our market
position in the core businesses thanks to our
acknowledged expertise. These include asset
securitisation, an area in which we are a leading
European player. We substantially increased
the issuing volume on the European asset
securitisation market, thereby boosting our
market share further. We established the
successful principal finance segment as an
independent business unit on January 1, 2003.

The Company People and Markets Financial Report Names and Locations
The marked reduction in world market volume
also took its toll of our project finance business.
Even so, we maintained our excellent position
among the global arrangers. In structured
commodity and commodity trade finance, which
generates a steady stream of income also in
economically troubled times, we gained additional
market share in 2002; we confirmed our position
as global market leader in the forfaiting segment.
Proven Product and Advisory
Expertise
In order to meet the challenges posed by
institutional investors’ greater aversion to risk
and their enhanced advisory needs in the field
of asset management, we developed products
with hard-and-fast return targets; we also
expanded our advisory activities in the area of
asset allocation considerably. We took account
of the greater need for security with regard to
equity-based investments by focusing on the
development of structured and above all capitalguaranteed
products, which proved to be very
popular in particular with savings bank clients.
| Dr. Holger Horn Group Strategy
Concepts need solid analysis, strategies need courage. Courage is something WestLB has
often demonstrated in the past. So when the bank was reorganised, the motto was again:
it is allowed to go against the trend, to think along new lines before choosing an approach.
That’s something I like. MYBANK
Success in this segment contributed decisively
to the marked increase in the client securities
business with the savings banks. The close
cooperation with the savings banks will be
further intensified in the future on the basis of
the framework agreement concluded with the
savings banks in North Rhine-Westphalia in
2002.
Client Access to Products Further
Improved
By pooling our expertise further in specialised
finance or trading, for example, we not only
reap the benefits of the resulting synergies but
also facilitate client access to our products. We
concentrated our specialised finance expertise
within the Bank and merged the structured
finance, asset securitisation, commodity finance
and forfaiting businesses in the new Global
Specialised Finance business unit. In addition,
we strengthened our credit product know-how
in the Global Financial Markets business unit
through the integration of the credit derivatives
business.
19

20
Lending Business
The traditional lending business (excluding
specialised finance) which is one of the core
businesses of WestLB AG, was severely affected
by the weak development of the economy and an
increased number of corporate bankruptcies in
2002. In light of this and in view of a greater focus
on risk and profitability, we selectively reduced
the lending volume. Excluding the lending
business of Landesbank NRW, the lending volume
averaged € 42.9 billion in 2002. This represents
a decline of around 7% compared to 2001. In
Germany, the lending volume decreased by
roughly 11% and outside Germany by about 5%.
A series of bankruptcies, but also corporate fraud
and accounting scandals (ENRON, WorldCom),
resulted in markedly higher loan loss provisions
than in the previous year.
Portfolio Management Refined
In 2002 we maintained and refined the greater
focus on risk and profitability in the lending
business which we had initiated in earlier years.
In addition to specific risks, the management
of the overall credit portfolio has now assumed
greater importance. The newly created central
credit portfolio management function has been
integrated in the credit risk business model
(origination, portfolio management and placement)
and reports to the Credit Portfolio Committee
composed of the risk, client and one product
Board members. The portfolio management unit
has the task of analysing the credit portfolios of
WestLB AG in respect of concentrations of individual
and sector risks, limiting them and initiating
corresponding controlling measures. In the
case of new lending business, the unit provides
benchmark information on pricing/profitability,
assesses the impact on the overall portfolio
and gives recommendations on the structuring
of individual transactions. In addition, the
regulatory and economic tying up of capital
in the lending business is optimised from the
overall bank point of view through investment
of released capital in the secondary market asset
portfolio. In this connection several measures
have been implemented since October 2002
with the aim of freeing a substantial amount
of equity capital and improving profitability.
Under the requirements of the Basel II accord,
internal rating systems have become very
important and will be a crucial factor for the
competitiveness of an international bank.
WestLB has had an internal rating system for
corporate clients for more than 13 years and
further rating systems for the major portfolios
of the Bank have been added over the years.
The award of a rating is an integral element
of the credit analysis process. Moreover,
ratings play an important role in the riskreturn
management of the Bank. The existing
procedures are currently being refined and at
the same time supplemented by rating systems
for smaller client and special portfolios. The
decisive aspect here is to obtain a differentiated
rating which is able to predict loan losses.
During 2003 the new and revised systems will
gradually be introduced in the Bank. At the
same time a rating database will be established
as a technical platform, which will make it
possible to see the historical development of all
ratings for all business transactions. The aim is
to achieve a complete rating cover of the overall
Bank portfolio from 2004 onwards.

The Company People and Markets Financial Report Names and Locations
| Inge Becker Savings Banks/Public-Sector Clients
Knowing the market means having a feel for the customer. Feeling what they think, where
they want to go, what they need. We all know that our success is driven by our customers’
success, which puts a premium on good relationship management. I am happy to say that
WestLB provides the right environment for bringing a listening attitude and a constructive
approach to each task. MYBANK
REAL ESTATE BUSINESS: CONSISTENTLY HIGHER
RETURNS IN NEW BUSINESS
8.7
12.6
13.9
2000 2001 2002
Return on equity
(in relation to Tier 1
capital, in %)
Complex Finance Solutions in the
Real Estate Business
In the real estate business we maintained the
case-by-case risk-return strategy introduced
in the previous year tailored to individual
commercial clients. With total new lending
down further, the margins in the new lending
business fulfilled the higher yield expectations;
returns improved from 12.6% in the previous
year to 13.9%.
The needs of real estate clients are changing
rapidly. Large companies in the real estate sector
in particular expect their financial partners to
offer more than just the financing of individual
properties. They must also provide solutions for
the management of entire real estate portfolios.
The traditional property-related financing is
thus declining in importance. By contrast, there
is now increased demand for highly structured,
tailor-made financial solutions requiring a
substantial advisory element. This includes, for
example, the management of real estate assets
which have become redundant as a consequence
of many companies’ concentrating on their core
businesses, the securitisation of receivables
and assistance in obtaining access to the capital
market – in the current stock market environment
primarily the issuance and placement of bonds.
Strengthening the capital base through equity
investments or providing mezzanine capital will
gain in importance in the future.
WestLB is taking account of this trend and is
focusing its real estate business increasingly on
the development of financial solutions tailored
to individual client needs. Our clients benefit
from our sector-based approach, which enables
us to understand their specific requirements
better, and our extensive expertise in the
provision of corporate finance solutions. We
will concentrate our real estate activities even
more closely in the future, therewith improving
client access to our products further. In this
connection, Westdeutsche ImmobilienBank,
which we will acquire in full in the course of
2003, will be expanded as a competence
centre for the funding business, credit and
quasi-credit financing and real estate advisory
services.
21

22
Specialised Finance
PROJECT FINANCE: LEADING POSITION IN THE WORLD
MARKET MAINTAINED
5.7
4.9
Source: Capital DATA
Projectware
3.4
5.0
2.0
Lending volume
(€ billions)
4.2
World market
share (%)
2000 2001 2002
Specialised finance, one of WestLB’s strategic
businesses, was characterised by mounting
risks in key industries in 2002. Thanks to
an optimised risk structure we were able to
strengthen and even expand our strong market
positions in numerous business segments.
Within the bank, we continued to pool our
specialised finance expertise and also added
new experts to our team. In addition to project
finance, leveraged finance, structured leasing,
export and transport finance, our Global
Specialised Finance business unit now also
offers asset securitisation products, commodity
finance and forfaiting.
Market Position in Project Finance
Maintained
The slump in investment activity, particularly
in the U.S. energy sector, was the major force
affecting the global project finance market in 2002.
With a world market volume of € 48.3 billion
(2001: € 96.6 billion), we arranged project financing
transactions with a volume of € 2.0 billion
(2001: € 4.9 billion), thereby maintaining our
outstanding position among the global arrangers.
We focused on projects in which we acted as
lead arranger, covering all the major markets, in
particular Europe and Asia/Pacific. With a global
market share of 4.2% (2001: 5.0%) we were
placed fourth in the league tables of Project
Finance magazine. Numerous awards also
confirmed our leading position in the market,
including Best Global Oil & Gas Bank, Best
Bank in Latin America (Global Finance
Magazine) and – of particular note – Global
Arranger of the Year (Infrastructure Journal).

The Company People and Markets Financial Report Names and Locations
| Evelyn Maria Bodenmeier Global Specialised Finance
Developing ideas, implementing ideas. No other bank leaves so
much room for innovation. This is something WestLB expects
from you and helps you put into practice. So you produce results
that leave their mark on the markets. Such an environment
allows me to develop. What else could you possibly expect from
your bank? MYBANK
Emphasis on Infrastructure
The emphasis of our project finance business
in Europe was on infrastructure and the energy
sector. Two transactions in the United Kingdom
stood out among the others: the £ 426 million
deal to rebuild Wembley Stadium and the
modernisation of London’s underground system.
Also of note was the financing for the construction
and operation of two liquid-gas-powered trains in
Nigeria, which earned the EMEA Project Finance
Loan of the Year award from International
Finance Review (IFR).
Our strong position in the Asia/Pacific region
was underscored in numerous major transactions
in which we acted as lead arranger. For instance,
we arranged HK$ 300 million in financing for
the Tradeport logistics centre at Hong Kong
International Airport, a transaction that earned
us the Asia Pacific Transport Deal of the
Year award from Project Finance magazine.
We also supported arranging A$ 5.6 billion in
acquisition financing for Sydney Airport, which
bolstered our market position in the infrastructure
segment. The US$ 603 million in acquisition
financing which we arranged for Malaysian
mobile telephony operator Maxis was recognised
as Asia Pacific Telecoms Deal of the Year.
Restructuring in the Americas
The project finance business in the United
States was heavily influenced by the market
adjustment process in the telecommunications
sector as well as the growing problems in the
energy sector. Added to this was the fact that
revised reporting guidelines steered many
companies towards less complex financing
structures. As a result new business in the
project finance field was limited. The majority
of clients, particularly those in the energy
sector, tended to focus on the restructuring
of existing transactions. The difficult situation
in the telecommunications industry led to risk
provisioning for sub-sea and terrestrial fibreoptic
networks; by contrast, only isolated
mobile communications transactions were
affected.
23

24
According to an Asian proverb, every day holds a new opportunity for you. All you have to do is get
up before it does. That also applies to trading – anticipate the right thing before anyone else does.
Be quicker, think two steps ahead. At WestLB, your own intuition is backed by a large number of
professional tools. That’s the perfect environment for taking opportunities. MY BANK
ASSET BACKED SECURITIES: MARKET POSITION IN
EUROPE SUBSTANTIALLY EXPANDED
946.5
587.6
1.0 0.4
2000 2001 2002
3,790
Issuing volume
(US$ millions)
2.8
Market share (%)
| Jing Min Li Equity Finance
The market in Latin America was destabilised
by the economic crisis in Argentina and the
elections in Brazil. Most of our business involved
project financing for export-related ventures
which was combined with credit-enhancing
collateralisation models of U.S. reinsurers.
Asset Securitisation: Market
Profile Strengthened
We expanded our market position as one of
the leading banks in the asset securitisation
business. We sharpened our profile in the term
securitisation market, in which the transaction
volume increased significantly last year, raising
our market share from 0.4% to 2.8%. One
highlight was the transaction with Banque Misr,
the second-largest commercial bank in Egypt.
The US$ 250 million deal was the first asset
backed transaction in Egypt, North Africa and the
Middle East and was also the first refinancing
in the region involving the issue of commercial
paper. To expand our operations in the Asia/
Pacific region, we enlarged our presence in Tokyo
and also plan to be active in the Australian
market in the future.

The Company People and Markets Financial Report Names and Locations
Leveraged Finance Continues to Grow
We clearly expanded our position in the
leveraged finance business in 2002. We acted
as arranger and underwriter for a number of
major transactions in Europe, arranging a series
of deals for leading private equity investors.
Two lead arranger mandates were of particular
note. We supported J.P. Morgan Partners in their
acquisition of Siteco, a leading manufacturer of
industrial lighting, structuring and underwriting
the entire debt financing. In addition, we were
mandated by Trader Classified Media, the world
market leader for classified ads, to arrange
a € 380 million refinancing and acquisition
financing. The fact that we are bidding in all
of the major transactions coming up in 2003 is
further evidence of our prominent position in
the leveraged finance market.
Difficult Conditions for Aircraft
Finance
In view of the persisting slump in air travel
worldwide, there were still no signs of recovery
in the aircraft finance sector last year. We
adapted our activities to the downturn in the
market from a strategic point of view, seeking
growth only in good quality segments. The
aircraft lease financing deal we worked out for
Southwest Airlines was singled out by Jane’s
Transport Finance magazine as US Debt
Deal of the Year 2002. We also earned the
title Aircraft Finance Innovator of the
Year 2002 for the financing of four aircraft
for Scandinavian Airlines Systems. We also
strengthened our international market position
with Japanese leveraged lease financing packages
for airlines. Our aircraft leasing company
Boullioun Aviation Services Inc. performed well
in view of the difficult market conditions; only
one of its 77 aircraft could not be leased out in
2002. In the ship finance field, we completed a
number of profitable new deals and intend to
expand this business further in 2003.
Strong Partner in Structured Lease
Financing
We strengthened our position in 2002 as a leader
among German banks in the U.S. cross-border
leasing market, with numerous deals in which
we acted as lender or assumed the performance
of obligations under loans or equity capital
commitments (defeasance bank), and at the
same time we cemented our role as a partner to
the municipalities. We also expanded our film
financing business in Germany, a segment in
which we have meanwhile become established
as a major player. With terms of between 25
and 30 years, the numerous mandates we have
obtained indicate that WestLB occupies a strong
position in the market despite the envisaged
abolition of guarantor liability.
Commodity Finance in Great Demand
Given its anticyclical nature, commodity finance
is a reliable source of income also in times of
economic weakness. We gained market share in
structured commodity finance and commodity
trade finance in 2002, transacting a substantial
number of deals in the CIS states and in South
America. Every year since 1997, our intelligent
solutions have received Trade Finance magazine’s
25

26
Deal of the Year award. We have continually
expanded our global presence in this field in
recent years, notably in Latin America and Asia
as well as in London. We are also developing
the African market thanks to our cooperation
with the South African ABSA-Bank, a market
leader in Africa in the field of commodity finance.
In particular, brisk demand for commodity
finance in the energy and metals sector in
Russia and in a number of Central and Eastern
European countries exceeded our expectations.
The same was true for crisis-ridden Argentina,
one of the largest commodity producers in Latin
America. While many international banks pulled
out of the market following the elections in
Brazil, we won business in the metals & mining
and softs sectors.
Export Finance: Changed Acquisition
Attitude Pays Off
The trend towards a changed acquisition attitude
in the capital goods market gathered pace last
year. Increasingly, we managed to win new
customers by marketing heavily in countries at
both ends of the supply and demand chain. In
countries where the need for capital goods
is high, we negotiated framework agreements
on a selective basis. For instance, we concluded
a multi-sourcing framework agreement with
nine Iranian banks for ECA-backed business
with a volume of € 500 million. In Iran we
were also mandated to act as financial advisor
for a 900-megawatt power plant, which is
to be financed for the first time on the basis
of a combined export and project finance
structure.
Global Leader in Forfaiting
Despite a worldwide decline in trade flows,
we were able to maintain our position in the
forfaiting segment. As the global leader, we
were singled out by Euromoney magazine as
Best Forfaiting House for the fourth time in a
row. Successful products such as the Forfaiting
Fund and Forfaiting Securitisations, which we
further refined in 2002, will continue to generate
a steady flow of income in the years ahead.
We reinforced our leading position through the
development of a trading platform for forfaiting/
trade finance assets. Electronic platforms will
have a crucial influence on our products and
the conduct of business in the future.
Principal Finance: Corporate Finance
Products from a Single Source
On January 1, 2003, we established the successful
principal finance business segment as an
independent business unit. This will enable us

The Company People and Markets Financial Report Names and Locations
to provide the entire range of corporate finance
products from a single source; our principle is
the equity-led approach, which means that in
the Principal Finance business unit we arrange
and structure the financing needs of our client
partners both on the assets and liabilities side
of the balance sheet.
Principal finance is suitable for companies
with a stable cash flow, which can be used for
securitisation purposes and thus for optimising
the assets/liabilities structure of the balance sheet.
We use this financing technique with a wide
range of corporate finance solutions, for example
management buy-outs (MBOs), management
buy-ins (MBIs), leveraged buy-outs (LBOs) or
with the sale of non-core activities.
Focus on Portfolio Consolidation
Our business activities in 2002 focused on the
consolidation of the existing investment portfolio.
In February, for example, we conducted a followon
transaction for the Pubmaster Group, which
| John Howroyd Communications/Economics
How many identities fit under one roof? WestLB, in the form of a joint stock
company, has given an unmistakable answer to that question: one. The
identity of a focused commercial bank. This clarity and transparency gives
the bank an even sharper profile in a highly competitive market. This is
a convincing way of tackling change without losing your footing. That’s
quite impressive. MYBANK
enabled the client to purchase further pubs and
repay the funds which we had made available
as part of a management buy-out two years
earlier.
At the end of 2002 we arranged a third
refinancing, on this occasion for Swan Capital,
the holding company of Mid Kent Water.
The related issue, which was used to repay the
previous acquisition financing, met with strong
interest on the part of investors and was heavily
oversubscribed.
Brisk Demand for Principal Finance
Expected
The lasting bear market and the need for
many companies to focus their business on
core activities means that we can expect brisk
demand for principal finance solutions in 2003.
With our acknowledged market expertise and
the new structure for our principal finance
activities in place, we are well prepared to take
advantage of future market opportunities.
27

28
Trading
EUROBOND PRIMARY MARKET TAKES A BREATHER
79.4
36.9
43.8
270.8
499.5
136.7
52.2
32.7
389.9
509.3
2000 2001 2002
152.2
Other
35.8
Public-Sector
Clients
41.6
Supras
246.1
Companies
430.5
Banks/
Financial
Institutions
(€ billions)
Source: Capital
DATA Bondware
Trading operations and primary markets business
in interest rate, foreign exchange and capital
market products, which we have integrated
in the Global Financial Markets business unit,
were once again a key earnings contributor of
the Bank in 2002. Despite the global economic
slowdown and the uncertainty prevailing in
the markets, we strengthened our position
in numerous business segments. We further
improved our performance in syndicated loans,
corporate bond issuance and structured products.
Market conditions nevertheless made business
more difficult in, for example, individual foreign
exchange markets and in the secondary market
for credit products.
Last year we made a number of important
strategic decisions. We strengthened our
expertise in credit products in the Global
Financial Markets business unit through the
integration of the credit derivatives business.
A strategically important move was the founding
of the Covered Bond Bank in Dublin, which will
enable us to exploit the opportunities afforded
by the Irish covered bonds market and tap new
funding opportunities.
Interest Rate and Foreign Exchange
Business in the Liquidity Markets
Less clear interest rate trends and reduced
volatility in the core markets had a strong
influence on business with short-term interest
rate products in 2002. The limited trading
opportunities compared to the previous year
also had a negative impact on our key products,
including liquidity, FX forwards, short-term
derivatives and securities as well as repos.
Nevertheless, we once again demonstrated our
core competencies in the money markets –

The Company People and Markets Financial Report Names and Locations
| Jennifer King Global Asset Management
The world is complicated enough. That’s why I love simple solutions
that fit. WestLB works hard to find such a solution for every single
customer requirement. All these solutions are simple and convincing.
Hardly ever before have I seen so many people under the same roof
accept this challenge day in, day out with such great motivation and
commitment. MYBANK
pro-active risk management and clear positioning
in the market. In the foreign exchange markets,
fewer cross-border transactions resulted in
a perceptible drop in hedging demand and
intensified the pressure to consolidate.
Suppressed Appetite for Risk in
Emerging Markets
The financial crisis in Brazil and Turkey, together
with the suppressed appetite for risk on the part
of investors, were the major factors influencing
our interest rate and foreign exchange activities
in the emerging markets. Consequently, in the
traditional markets we focused on structured
solutions involving a relatively low level of risk.
Demand for hedging products grew sharply in
Central and Eastern Europe; we further increased
our market penetration in the region by offering
high-grade solutions.
Fixed Income Business Marked by
Low Interest Rates
European fixed income trading was marked by
low interest rates, a steeper yield curve and a
stronger trend towards euro/sterling convergence
in 2002. In view of growing budget deficits in
the euro area, euro/sterling spreads narrowed
in the course of the year.
We strengthened our market position in the
German government bond trading segment with
a transaction volume of € 5.6 billion and in the
jumbo Pfandbrief market with a trading volume
of € 109 billion.
In the structured interest rate derivatives
segment, activity was brisk in the German
insurance market in particular. There was
strong demand for callable long-term zero
coupon bonds and spread steepening bonds
which took advantage of the very flat long end
yield environment and the trend towards
euro/sterling convergence.
Credit Product Expertise Pooled
A sharp increase in corporate risks and the
persisting weakness on the stock markets,
which was also reflected in bond prices, had
an adverse effect on trading in credit products,
for example corporate bonds. In the case
of structured credit products, however, we
were able to generate substantial income
with a series of collateralised debt obligations.
Under these programmes (e.g. Blue Heron,
DUKE, European Dream), which proved to
be very popular, we structured portfolios
from, among other things, mortgage-backed
securities, housing loans and credit
derivatives.
29

30
Despite a continuing difficult market environment
for credit products, we see a number of positive
indicators for 2003. We intend to take advantage
of the resulting business potential; we already
laid the foundations for this through the
integration of our credit derivatives business
and the ensuing synergies which this will
provide.
Eurobond Issuance: Proven
Placement Power
After the record year 2001, the issuing volume
in the primary market for Eurobonds fell by
around 20% to € 900 billion in 2002. The
decline in corporate bonds was 35% and in
bank bonds roughly 15%. By contrast, issues
of public-sector clients maintained their upward
trend.
WestLB lead managed some 100 bond issues
of renowned German and international clients.
By placing a number of jumbo issues we were
able to demonstrate our unique access to a wide
circle of investors. Of particular note were the
multi-tranche issue for RWE AG with a volume
of € 6.4 billion and the € 3 billion issue for
Household Finance Corp. Through the successful
placement of customised Schuldscheindarlehen,
including the € 100 million transaction for
German generic pharmaceuticals company
Hexal AG, we confirmed our leading role in this
growing market for corporate clients. In the
bank bond segment, too, we obtained numerous
mandates, including the debut benchmark bond
of Landesbank Schleswig-Holstein, secured
bonds of Caja Madrid and AHBR and various
floating rate notes.
In the public-sector client segment, we were
ranked among the top five bookrunners for
regional authorities, as in the previous year.
Successful transactions included the international
benchmark bond for the State of Brandenburg
and a portfolio transaction for three UK regions.
Furthermore, the € 2 billion bond for the State
of North Rhine-Westphalia, which was the fourth
benchmark issue lead managed by WestLB,
received the IFR Award 2002 in the category
Regional Authorities in Euro.
International Funding Presence
Augmented
We strengthened our presence on the international
bond markets in 2002 through the issuance of
own bonds in various currencies. In addition
to our US$ 1 billion bond, which met with a
distinctly strong investor response, we presented
ourselves as a flexible issuer in the structured
segment with a number of tailor-made products.
We provided our customers with comprehensive
information which helped to facilitate the
seamless transition to the legal form of an AG;
we are therefore optimistic that our issues will
continue to be placed successfully with investors
in the future. This optimism is borne out by the
strong response to our € 1.25 billion benchmark
bond, which we issued in early 2003 and with
which we have expanded our own euro yield
curve. Due to the strong demand, this issue has
meanwhile been increased by an additional
€ 500 million.

The Company People and Markets Financial Report Names and Locations
| Alex Verbov Leveraged Finance
Precision is the key to success. To live up to this challenge, we at WestLB
have always taken a closer look behind the scenes. Because the market is
quick to punish mistakes. Only if you fully understand the markets can you
make use of their principles and control the risks. This is why WestLB has
worked like a joint stock company long before the new legal status was
officially adopted – and successfully so. MYBANK
SYNDICATED EUROLOANS: HIGHER MARKET VOLUME
WITH FEWER TRANSACTIONS
551.9
1,459
2001 2002
599.3
Market volume (€ billions)
1,366
Transactions
Source:
Capital DATA Loanware
In the short-term maturity segment, WestLB AG’s
global commercial paper programme launched
in 2001 continued its success story in 2002 and
was increased to almost € 9.0 billion (2001:
€ 5.0 billion). In light of the strong diversification
across investors, regions and currencies, we were
thus able to broaden our short-term funding
base significantly.
Tapping the Market for Irish
Covered Bonds
The European market for covered bonds has
expanded sharply in recent years; attractive
alternatives to the traditional German Pfandbrief
have become established, notably in France
and Spain. In order to tap the opportunities
on the Irish covered bond market, we founded
the WestLB Covered Bond Bank in Dublin on
October 1, 2002. Thanks to a soon to be confirmed
first-class rating and a high-calibre portfolio,
the first € 1 billion covered bond is due to be
launched in the first half of 2003. The establishment
of WestLB Covered Bond Bank is an
important strategic step. Traditionally strong
in the Pfandbrief segment, we are seeking to
extend our franchise to the expanding European
covered bond market, tapping new refinancing
opportunities for the Bank and its clients.
Strong Growth in Syndicated Loan
Business
The European syndicated loan market was highly
robust in 2002. Market volume rose by 8.6%
over the previous year to nearly US$ 600 billion,
with a trend towards fewer transactions with
larger volumes.
Last year WestLB received 65 financing mandates
with a transaction volume of US$ 72 billion.
This exceeded the figure of the previous year by
35.5% and was significantly stronger than the
market as a whole. Our mandates were primarily
in the telecommunications, transport/logistics,
financial institutions and utilities sectors. In
regional terms we were active above all in the
United Kingdom, where we were placed an
impressive seventh as arranger, France and
Germany. The jumbo transactions for Vodafone
AirTouch and Network Rail in the UK, the renewed
31

32
| William C. Schier Corporate Clients
If you think you know your customers, you have long since lost them. Because in a
client relationship, more than in any other relationship, standing still actually means
stepping backwards. Current trends, new projects, changing objectives – all these
factors constantly create new constellations in which customers expect new solutions
from their bank. This is why we at WestLB like to say “advising your customers means
accompanying them”. MYBANK
refinancing mandate for France Télécom and
transactions for well-known German companies
like TUI, ThyssenKrupp and Energie Baden-
Württemberg (EnBW) deserve special mention
here. In addition, we arranged the syndication of
structured financing deals for Wembley Stadium,
Tube Lines London Underground and H3G Italia.
Our leading role in the market was underscored
in 2002 with impressive rankings in international
league tables. In the IFR league tables of
leading banks, for example, we were ranked
eleventh in the category Mandated Arrangers,
Europe/Middle East/Africa and third in the
category Banks, Euromarket of Dealogic/
Loanware.
Secondary Market Credit Assets in
Luxembourg Successful
As in the previous year, our subsidiary WestLB
International S.A., Luxembourg, posted profits
after tax of € 30 million. Investment business in
secondary market credit assets was particularly
successful. Although private banking did not
remain entirely unscathed from the poor conditions
prevailing on the stock markets, it once again
made a sustained positive contribution towards
earnings. The capital markets and treasury units
contributed substantially to the overall profit of
the Bank in an uncertain market environment
and ended the year well above budget.
Equities Business Realigned
The equities and investment banking business
of WestLB Panmure could not escape the
continuing downturn on the stock markets. In
view of this, we carried out a comprehensive
restructuring of our activities involving a major
reduction in headcount, primarily in London.
We have nevertheless retained the entire range
of our high-quality products and services and
even expanded them in important areas. For
instance, we set up a Corporate Equity Solution
Group, a team of specialists who will provide
tailor-made equity solutions to our corporate
clients from a single source.
Strong Reputation of Equities
Research Confirmed
According to polls conducted among our clients
by independent institutions, the strong reputation
of our pan-European research products has
increased further. We have received top rankings
for our research products on German large caps.

The Company People and Markets Financial Report Names and Locations
Our mid & small cap research has also acquired
a high reputation, especially in the UK. We are
also one of the first brokerage houses in Europe
to concern ourselves in detail with the new
investment approach of Socially Responsible
Investments (SRI). Both our analyses and investor
conferences which we organised on the subject
of sustainability have met with a very positive
response.
Brisk Demand for Derivatives
The equity derivatives business was highly
successful in 2002. In the case of capitalguaranteed
products such as the W-I-N certificates
and PLUS-Bonds, which were very popular
especially with the savings banks, we advanced
to become the market leader on the EUWAX
in Stuttgart. There was increasing demand on
the part of our institutional clients for structured
equity-linked products, which enabled us to
expand our market position also outside Germany.
Of particular note among our numerous transactions
was the arranger mandate for the capitalguaranteed
DEKA WorldGarant fund. We also
organised a number of workshops in which we
informed our clients in detail on the treatment of
derivatives in their accounting and balance
sheet presentations.
Focus on Private Equity
Since growth companies were largely unable
to benefit from IPO financing in 2002, the
procurement of pre-IPO capital gained in
importance. Among the companies we supported
was GFKL Financial Services AG, one of
Germany’s leading financial leasing providers,
whom we helped to raise € 32 million. We also
participated in a private placement for the French
biotech company Meristem Therapeutics S.A.
and, in the venture capital segment, in the
debut growth financing for the London-based
start-up company 21AccessUK.
In the M&A field, we acted as financial
advisor to RWE Gas AG in connection with the
privatisation of the Czech gas utility Transgas a.s.
and eight additional regional gas companies.
Another major transaction was the acquisition
of Inn Partnership by Pubmaster, the UK pub
chain, which is now the UK’s third-largest pub
group.
Concentration on Core Competencies
In light of the persisting weakness of the
stock markets, we will focus our equities and
investment banking businesses clearly on our
core competencies in 2003. The core equities
business with European large caps, German mid
caps and equity derivatives will be managed
along with M&A advisory services under the
WestLB brand. The activities in London will be
streamlined significantly. The UK Mid Caps and
Corporate Broking unit will in future operate
under the Panmure U.K. name. The realignment
will enable us not only to achieve major savings
and synergies, particularly in the trading and back
office areas, but also ensure that we continue
to offer our clients a service tailored to their
individual requirements.
33

34
Services
ASSETS UNDER MANAGEMENT: MARKET-DRIVEN
CONSOLIDATION
38.8
40.8
37.4
2000 2001 2002
(€ billions)
WestAM: Absolute Return Products
and Advisory Expertise in Demand
As a result of the difficult market conditions in
2002, the risk profile of our asset management
clients changed noticeably. They are less willing
to take risks and have a greater need to hedge
their investments, while at the same time client
demand for asset allocation advice has increased.
In view of this, the focus of our asset management
activities, which are handled by our globally
operating subsidiary WestLB Asset Management
(WestAM), shifted last year. We took account of
the changing needs of our clients and developed,
for example, the WestAM Navigator Multi-Strategy
Fund, a product which pursues absolute return
targets and ensures an optimised risk/return
profile through a wide diversification. We also
offer our clients extensive advisory expertise in
asset allocation, for instance at client events
organised specifically for this purpose.
Money Market Funds in the
Limelight
After the strong growth of the past four years
with a doubling of assets under management,
2002 saw a phase of consolidation. At the end
of the year, total assets under management
amounted to € 37.4 billion (2001: € 40.8 billion).
Outflows of funds were heaviest in funds with a
high percentage of shares. On the other hand,
the French money market fund WestAM Sécurité
performed extremely well, increasing its volume
from € 1,729 million to € 2,918 million. The family
of Compass Funds also developed encouragingly
with a volume of € 816 million (2001: € 771
million), as did the COREplus Private Equity
Partners fund launched in 2001 with a volume
of € 362 million (2001: € 186 million).
Our products once again received widespread
recognition for outstanding quality in 2002.
Standard & Poor’s gave its highest fund rating
of five stars to our WestAM Sécurité, Compass
Global Emerging Markets and Compass European

The Company People and Markets Financial Report Names and Locations
Convertibles funds. In addition, the WestAM
Convertibles Europe fund received awards from
the French business journals Les Palmes and
L’Agefi as well as the financial journal of Le
Figaro. In Standard & Poor’s fund awards, the
WestAM Global Emerging Markets Equity fund
took first place.
Enhancing Profitability in the
Long Term
| Susanne Dieling Equity Investments
Knowing what goes well together. Understanding what has a shared
perspective. And then taking the necessary steps without hesitation. This
is the way that has led to the new WestLB. And these are the Bank’s key
strengths, which have made it one of the leading players in the market.
So we have every reason to be proud. MYBANK
In a demanding market environment, we see
growth potential in particular for absolute return
products, European convertibles, emerging
markets and European credits/bonds in 2003,
which we plan to exploit accordingly. By taking
a bottom-up approach, which ensures a balanced
portfolio opportunity/risk profile, our products
are well placed for these market conditions.
Supported by our proven management expertise
and broad customer base, we will continue to
expand our business in the year ahead and lay
the foundations for long-term profitability.
Full Range of Employee Pension
Scheme Products
Following the approval of West Pensionsfonds AG
and West Pensionskasse AG last year, WestLB
and its partners now offer the full range of
employee pension scheme products. Our subsidiary
West Pensions Consult GmbH concluded
numerous deals with large and medium-sized
companies in 2002. The demand for classic
pension insurance schemes was significantly
greater than for fund-based products; for
this reason, the classic employee pension
scheme proved to be the most attractive form
of investment. In addition, solutions catering
to companies from different industries gained
in popularity. In this context, our participation
in the consortium of the metal and electrical
industry pension fund (MetallRente), which is
meanwhile recognised as a benchmark in the
market, paid off last year.
Employee pension schemes will continue to
grow in importance. In addition to administrative
benefits, there are significant balance sheet
advantages for companies offering such schemes.
In order to exploit the market opportunities,
West Pensions Consult will concentrate primarily
on attracting new employers for its range of
products as well as potential employees from
existing clients in 2003. When advising employees
at company level, the successful cooperation
with the savings banks developed in the previous
year will play a central role.
Payments: Processes Optimised
Further
Paper-based payment transactions continued to
decline last year; at the same time the bundling
and optimisation of handling processes gained
in importance. We intensified our cooperation
with other Landesbanks in this field, in particular
with respect to the expansion of our web-based
offering. In the area of international payments,
35

36
DOMESTIC PAYMENTS: AUTOMATION ALMOST
COMPLETED
� paper-based
� electronic
594.2
781.0
1,179.3
1992 1997 2002
| Stefan Esser Global Equity Derivatives
Seeking new challenges every day, setting new objectives all the time –
that’s something I find quite exciting. But if you do business around the
globe, you should not lose your footing, but remain realistic. WestLB has
roots and legs at the same time. So it’s firmly rooted in the region and on
the move in all the world’s markets – a perfect combination. MYBANK
(in millions of
transactions)
we strengthened our position as the service
provider of choice for the savings banks through
state-of-the-art user interfaces and improved
price systems. By linking up to WestLB’s
systems, we will ensure that the savings banks
have access to the central clearing systems in
Europe. A consistent refinement of our systems
will enable WestLB to establish itself as the
central interface of the Savings Banks Financial
Group in the clearing system of the European
Banking Association.
The demand for cash management systems has
increased further. We stepped up our marketing
efforts in this field considerably last year, offering
our products to internationally operating and
municipal enterprises and as white-labelling
solutions for other banks.
Card Services: Closer Cooperation
with Network Operators
Card-based payment systems continued to be
an attractive instrument of customer retention
last year. We intensified our cooperation with
network operators in the development of EC
cash terminals, launching an EC cash system
together with Lidl GmbH & Co KG. We have
meanwhile sold our LTU Eurocard portfolio to
Santander Direkt Bank. We were also closely
involved in setting up the operating company
�-Points, a bonus programme for savings
banks products in the Rhineland.
Trade Finance Business Integrated
Last year we pooled our transaction banking
activities and integrated the documentary trade
finance business in order to streamline the
handling processes and further improve the

The Company People and Markets Financial Report Names and Locations
overall quality. The combination of centralised
processing and decentralised account management
and product distribution will ensure that our
corporate clients and partner banks receive the
best possible service. In 2002 we once again
developed innovative, cross-border sales financing
and pressed ahead with the development of
web-based solutions, which enabled us to offer
our partner banks a complete range of electronic
trade finance products and services. Going
forward, we will develop web-based solutions
in close liaison with the savings banks which
will help to optimise processes even further.
WPS Bank: Central Securities Service
Provider for the Savings Banks
WPS WertpapierService Bank AG (WPS Bank)
increased the number of securities accounts
under its management by 50% to roughly
1.8 million in 2002 and also further enhanced
the stability of its settlement systems. As a result,
WPS Bank strengthened its position as one of
the leading providers of securities services in
Germany. In connection with the realignment of
business at WestLB AG, WPS Bank was sold at
the beginning of this year to the savings banks
and giro associations of the Rhineland and
Westphalia-Lippe.
The most important project in 2002 involved the
transfer of 13 major savings banks from the
securities system of Sparkassen Informatik GmbH,
which was started in the previous year. The
WPServe processing system is now used by
all the savings banks in North Rhine-Westphalia
and Brandenburg. As part of the MAEGASys
project, this system will be expanded to include
functional elements for institutional investors
and will entirely replace the BSP TRADE system
for wholesale clients in the near future.
Migration projects already started for other
savings banks associations (Nord-Verbund) are
paving the way for the acquisition of additional
customer groups in 2003. Outside the savings
banks organisation, where the biggest client is
Postbank EasyTrade.AG with a total of 450,000
securities accounts, a further potential client for
fund accounts has been acquired for 2003. In
seeking to expand the market position further,
the migration expertise demonstrated once
again in 2002 is likely to be a crucial factor of
competition.
37

38
Equity Investments
The equity investment market was characterised
by consolidation and portfolio realignment
in 2002 against a background of weak capital
markets and difficult economic conditions.
We also realigned parts of our portfolio, taking
into account the increased risks. The market
nevertheless remains attractive especially
for investments in medium-sized and larger
companies; for one thing, company values are
relatively low and, secondly, the equity capital
requirements of companies are substantial. In
addition to a large number of disinvestments,
we made a number of new investments in
Mittelstand companies and also in major
corporations.
As part of our strategy of concentrating on core
businesses, we sold the WPS WertpapierService
Bank AG and our shareholdings in Westfälische
Provinzial-Versicherungen. At the end of 2002,
our investment portfolio had a volume of
approximately € 8.7 billion (2001: € 7.3 billion);
of this amount, equity investments accounted for
€ 3.8 billion and strategic investments € 4.9 billion.
We employed our full product range, which
covers the entire life cycle of a company, to
finance investments, including direct investments,
mezzanine capital and equity financing with
specific additional contractual provisions.
Investment Partner for the
Mittelstand
We made a number of new investments in
medium-sized growth companies in 2002.
WestKB Westdeutsche Kapitalbeteiligungsgesellschaft
mbH, by way of a management
buy-out, acquired an interest in Fernbach
Financial Software S.A., Luxembourg, which
develops and distributes software for banks.
Together with West STEAG Partners GmbH,
we participated in a capital increase for a chip
manufacturer via our subsidiary BWLB GmbH.
As part of our disinvestments, we sold our
shares in Schuh-Union AG last year.
Investments in Biotechnology
Intensified
In addition to investments in proprietary venture
capital and private equity funds such as WestLB
Equity Partners, WestLB Global Investor and
COREplus Private Equity Partners (launched in
2002), we are broadening our industry expertise
through investments in externally managed
funds. Last year we intensified our strategic

The Company People and Markets Financial Report Names and Locations
| Oliver Seuss Equity Marketing
WestLB’s new legal status means the Bank has finally officially arrived where it has long since
been thanks to its professional work in the market. This is perfectly in line with the Bank’s
pragmatic attitude and gives us renewed strength. Because competence and performance are
now put to work within a framework that is clearly defined also from the outside. This means
new motivation even for the pros. MYBANK
DEVELOPMENT OF WESTLB’S INVESTMENT PORTFOLIO
6.6
7.3
8.7
2000 2001 2002
(€ billions)
cooperation with Merlin Biosciences Ltd., a
venture capital company specialising in the
life sciences sector, which now manages
fund assets of € 500 million. We subscribed
to € 30 million as a cornerstone investor in
the Merlin Biosciences Fund III. Following
the acquisition of Rhein Biotech AG – whose
development we actively supported in recent
years – by the Swiss biotech company Berna
Biotech AG, we successfully terminated our
investment last year.
Private Equity for Large Companies
Expanded
Last year we supported our major corporate
clients through the provision of mezzanine
financing and assisted them in connection with
disinvestments. As part of the realignment of our
investment portfolio, we sold our interests in
Continental Can and n-tv. We also restructured our
acquisition financing and the direct investment
of our subsidiary West Logistics in Duisburgbased
Klöckner & Co. AG.
Investment in Europe’s Largest LBO
We contributed € 200 million to the consortium
seeking to acquire Legrand, the French electrical
group. This private equity transaction with a total
volume of € 4.8 billion is the biggest leveraged
buy-out in continental Europe in recent years.
39

40
| Sabine Bürgel Risk Management
Risk management is the diplomacy of the banking business. A quick mental grasp, tactical
skills, powers of persuasion and an ability to assert yourself are the skills you need to do
a good job which primarily takes effect in the background. This benefits WestLB’s clients
and owners alike. Today and in the future. MYBANK
COMPREHENSIVE RANGE OF EQUITY PRODUCTS
Equity Capital Mezzanine Capital
Venture Capital Equity Mezzanine
Incubator/Seed capital Atypical silent partnership
Bridge capital Participation certificate
Private Equity
Growth financing
Management buy-out (MBO),
Management buy-in (MBI)
Employee profit sharing
Public Equity Debt Mezzanine
Amtlicher Markt Silent partnership
Geregelter Markt Subordinated loan/junior debt
Freiverkehr Shareholder loan
International IPO Loan with profit participation
Convertible bond
Warrant bond
In addition to an equity capital investment of
€ 1.8 billion, € 3.0 billion was raised in the form
of bank loans and mezzanine capital to finance
the acquisition and to restructure Legrand’s
debt.
Seizing Future Opportunities
The German private equity market, in particular,
will continue to enjoy above-average growth
potential, with the focus on larger private equity
financing and buy-outs (e.g. in connection with
company succession plans, LBOs, MBOs and
MBIs). The favourable market outlook, which is
already being reflected in growing demand for
mezzanine finance, is due to a number of factors:
the low equity capital base still plaguing many
medium-sized companies, the continuing
uncertainty on the stock markets and resulting
difficulty of raising capital and the growing
number of spin-offs as corporate groups refocus
their activities.
The equity investment business, which we have
concentrated in the Equity Investments business
group, is a core business of the Bank. We will
seek to exploit the major opportunities afforded
by the equity investment market with the help
of our professional product range and markedly
expand our activities, above all in the private
equity field. In doing so, we will rely on the
industry expertise we have built up through our
many years of experience in the market and our
strategic partnerships.

The Company People and Markets Financial Report Names and Locations
Landesbanks
In the context of the restructuring of the
investment portfolio at WestLB AG, we transferred
our shareholdings in Landesbank Rheinland-Pfalz
(37.5%) and Landesbank Schleswig-Holstein
(39.9%) to the wholly-owned subsidiary WestLB
Beteiligungsholding GmbH. Last year the
Landesbank shareholdings were for the first
time not included in the consolidated accounts
on a pro rata basis, but were valued at equity.
Landesbank Schleswig-Holstein and Hamburgische
Landesbank intend to merge into HSH Nordbank
AG with retroactive effect from January 1, 2003.
In line with our shareholding in Landesbank
Schleswig-Holstein, we will hold shares of
approximately 26.9% in the merged bank.
Westdeutsche ImmobilienBank:
Focus on International Business
Westdeutsche ImmobilienBank (ImmobilienBank),
in which we have a stake of 50%, will be taken
over entirely by WestLB AG in 2003. In the
context of the further pooling of our real estate
activities, the ImmobilienBank will operate as a
specialised institution for traditional real estate
financing, real estate consulting and the funding
of real estate financing in the future.
The ImmobilienBank continued to focus its
activities on international financing business
in 2002. Faced with difficult market conditions,
the lending volume amounted to roughly € 3.9
billion in 2002 (2001: € 4.2 billion); international
financing continued to predominate with a
percentage share of 54%. Housing construction
finance in Germany developed favourably,
especially through the Immobank Direkt
distribution channel. Total lending in the housing
construction field rose by 25% to € 525 billion
(2001: € 420 billion).
The ImmobilienBank reported an increased net
profit of € 7.8 million (2001: 1.7 million) after
taxes in 2002. Pre-tax operating profit after risk
provisions amounted to € 11.3 million (2001:
€ 14.9 million).
Innovative Refinancing Solutions
In order to expand its business opportunities,
the ImmobilienBank stepped up its securitisation
activities last year. Together with WestLB AG
it securitised a globally diversified portfolio
of commercial real estate loans worth roughly
€ 1 billion. It plans to securitise housing loans
with a volume of roughly € 1 billion in mid-
2003. With a view to further improving its
refinancing opportunities, the ImmobilienBank
has been rated by a renowned rating agency
and received the maximum triple-A rating for
its public-sector and mortgage bonds.
The ImmobilienBank´s affiliated companies also
increased their focus on international real estate
investment banking. WestFonds Immobilien-
Anlagegesellschaft mbH launched its INTERRA
funds, which were right in line with the trend
toward high-yield investments and investments
abroad. New business increased substantially
over the previous year. The two open-end real
estate funds of WestInvest Gesellschaft für
Investmentfonds mbH boosted their investment
volume markedly, achieving impressive returns
of 5% (WestInvest 1) and 6.1% (WestInvest
Interselect).
41

42
Sparkassen
CLIENT SECURITIES BUSINESS: SALES ALMOST
DOUBLED
23.5
12.0
22.3
2000 2001 2002
(€ billions)
As the central institution for the savings banks
in North Rhine-Westphalia and Brandenburg,
WestLB AG continued to provide its partners
with a complete range of products and services
for their proprietary and client business in
2002. The combination of an efficient central
bank and the broad-based sales and distribution
network of the savings banks underscored the
partnership’s capacity to guarantee seamless and
precise handling of all business activities. A
greater concentration of expertise has translated
into ever faster, more efficient business processes.
Brisk Demand for Structured
Products
Given the weak state of the economy as a whole,
cooperation with the savings banks in North
Rhine-Westphalia developed encouragingly.
Sales of securities in the proprietary business
segment decreased, but nevertheless maintained
a high level at € 11.2 billion (2001: € 14.3 billion).
In the client segment sales increased substantially,
almost doubling to € 22.3 billion (2001: € 12.0
billion). Fixed income securities and investment
certificates fared particularly well, with sales
of WestLB AG products soaring by more than
50% to € 75 million (2001: € 45 million). This
enabled us to demonstrate our expertise in
creating structured products; capital-guaranteed
products such as the W-I-N certificates and
PLUS-Bonds were in particularly strong demand
among savings banks’ customers. As part of
our balance sheet management services for the
savings banks, we offered them structured and
derivatives products designed to optimise their
portfolio and interest rate management.
Successful Cooperation with Savings
Banks in Brandenburg
The cooperation with the savings banks in
Brandenburg, which dates back to 1992,
continued to flourish in all key strategic
business segments last year. The partnership

The Company People and Markets Financial Report Names and Locations
| Peter Heider Global Financial Markets
Transparent structures and short decision-making lines are the key assets of WestLB.
Without powerful IT networks, they cannot be fully exploited. They ensure transparency and
quality in product development and consulting. This is something WestLB attaches great
importance to – and rightly so. MYBANK
was intensified both in liquidity provision and
in the field of securities for the proprietary and
client business. Fixed income securities and
capital-guaranteed structured products were
once again the focus of interest.
Partnership Strengthened by
Framework Agreement
After the division of Westdeutsche Landesbank
Girozentrale, WestLB AG serves as the central
institution for the savings banks; this is expressly
laid down in its articles and bylaws. Product
development and account management are
handled from a single source, thereby securing
the savings banks easy access to innovative,
competitive products and services.
With a view to cementing the cooperation with
the savings banks, we concluded a framework
agreement with the savings banks associations
in the Rhineland and Westphalia-Lippe last year.
Based on the existing cooperation agreement,
we view our tasks in Brandenburg in the same
way as those in North Rhine-Westphalia.
Extensive List of Services
Agreed
The framework agreement contains an extensive
list of products and services which WestLB AG
will provide in its designated role as the primary
partner of the savings banks. The list includes
WestLB AG’s comprehensive range of offers to
date and promising business segments which
require greater emphasis. These include, in
particular, joint activities in international
business, investment banking and corporate
finance.
The framework agreement forms an important
basis for mapping out the future course of the
cooperation between WestLB AG and the savings
banks. Our complementary product offerings
and joint acquisition efforts will contribute
towards enhancing the efficiency of the savings
banks and WestLB AG. An advisory committee
has been established as a central communication
platform for the purpose of optimising the
cooperation on a continuous basis. Regular polls
of the savings banks will form the basis for its
deliberations.
43

44
Public-Sector Clients
Demand at the federal level and among
Germany’s states, municipalities and public-law
corporations for structured financing and asset
management products has continued to grow.
WestLB AG further demonstrated its extensive
expertise, harvested from its experience in
handling the needs of public-sector clients and
from offering the high-calibre products of an
internationally successful commercial bank.
Pole Position in Bond Issues
Maintained
Due to an inflated mortgage bond market, the
federal states are increasingly turning to the
capital market to finance their budgets. WestLB
was again among the leading banks in Germany
in 2002 with regard to the arranging and placement
of public bonds. We were lead arranger for
three out of a total of seven benchmark bonds
for federal states in the year under review,
earning another top ranking by the trade journal
Euromoney for issues of Municipal Bonds. In
the municipal sector, city and community bonds
should offer attractive potential over the medium
term.
Popular Partner for PPP Initiatives
Faced with budget concerns, the central,
regional and local authorities are stepping up
their efforts to find private investors to fund their
infrastructures. As one of the world’s leading
project financiers, we are closely involved in
public-private partnership (PPP) initiatives of
the Federal Republic of Germany and the State
of North Rhine-Westphalia. Our subsidiary
Westdeutsche KommunalConsult, for instance,
is preparing a project for all of the City of
Monheim’s school and sport facilities. Moreover,
our PPP trade conference proved to be extremely
popular.
Innovative Debt Management
Services
We offer municipalities a total liability
management programme, handling all interest
management issues to optimise their debt
situation and lower their actual interest charges
over time. The City of Bottrop became Germany’s
first municipality to completely outsource its
debt management, and WestLB was awarded
the respective contract. During the year under
review, we received assignments from additional
cities in North Rhine-Westphalia.
The trend towards U.S. cross-border leasing
of municipal assets, particularly real estate, sewer
systems and rail infrastructures, continued in
2002. This generates cash benefits for the
municipalities, since they are subject to the
same tax conditions as their U.S. investors.
In our role as advisor and financial services
provider, we continued to supervise numerous
complex transactions for major German
cities.

The Company People and Markets Financial Report Names and Locations
| Dr. Jean-Christophe Curtillet Markets Research
Making the impossible possible. Calculating, measuring, predicting the future. And
anticipating market developments so realistically that the Bank can develop financing
solutions for its customers faster than its competitors. An exciting task in an exciting
Bank. MYBANK
In the field of online payment transactions, our
WestLB CashManagement product facilitates a
fast, up-to-date overview of all accounts and
payment streams. In early 2002, the City of Neuss
was Germany’s first municipality to conduct
online liquidity management with WestLB, and
others followed suit throughout the year.
Asset Management Defies the
Market Trend
We significantly strengthened our market position
in investment management for public-sector
clients, increasing the total fund volume to
roughly € 820 million (2001: € 735 million).
Along with our special funds, the successful
WestAM Sécurité money market fund proved
to be very popular with municipalities. We also
launched new customised funds which focus
on the specific needs of clients with regard to
preservation of capital and minimum return.
The municipal sector was particularly enthusiastic
about our strategic advisory and healthcare
privatisation products. We are advising a major
German city on the privatisation of its clinics
in what is currently Europe’s largest hospital
privatisation project. Municipalities are calling
increasingly on private investors to help them
ensure exceptional care in this sector. We aim
STEADY GROWTH OF ASSETS UNDER MANAGEMENT
597
735
820
2000 2001 2002
to tap the business potential arising from this
trend with the help of the consulting expertise
of WestLB Panmure.
Clients Benefit from Clear Focus
WestLB’s focus on areas of business which
involve the provision of advisory expertise is in
tune with the financial needs of public-sector
clients. Our many years of experience as a
municipal bank and our proven knowledge of
sophisticated financial solutions are excellent
prerequisites for providing successful services to
our public-sector clients – today and tomorrow.
(€ millions)
45

46
Bringing People Together — Speed,
Competence and Creativity Ensure Client
Satisfaction at WestLB AG.
Looking ahead to the elimination of institutional
liability and guarantor liability in 2005, WestLB
has prescribed itself a rigorous cost-cutting
programme, which includes a reduction in
headcount by 1,500 throughout the Group. With
the help of innovative personnel management
tools we are supporting the necessary process
of workplace reduction in the Bank. We stepped
up the pace of implementation during the
year under review, bringing forward the target
completion date from the end of 2004 to the
end of 2003. On the basis of a personnel concept
which was developed in close consultation with
the representatives of the employees, we reduced
our workforce by 686 in 2002. The savings were
achieved in a socially-acceptable manner using
a variety of state-of-the-art personnel instruments,
including agreements on part-time working,
measures to promote occupational mobility,
the transfer of employees within the Group and
early retirement schemes. The response to these
offers by employees has been encouraging. At
the beginning of 2003, a further 200 jobs were
cut as a result of agreements which came into
effect at the beginning of the year. Moreover,
593 employees left the Group on January 1, 2003
following the sale of the WPS Bank.
The total number of employees in the Banking
Group declined by 7.2% to 8,779 in 2002.
Personnel expenses in the WestLB Group fell by
10.0% to € 1,218 million (2001: € 1,354 million).
First-Class Training Opportunities
The employees of WestLB are faced with a
unique challenge as a result of the required
restructuring measures within the Bank. In order
to help them meet this challenge, we offer them
support in the form of a three-tier programme
entitled Managing the Transition as part of our
training programme for 2003, which contains
modules on advice, training and systems/
tools. Through change, project and process
management, we support the business groups
with special packages of measures ranging from
workshops to training seminars and project
management. These are supplemented by
one-to-one counselling and coaching.
Training at WestLB has taken on a new
dimension. The e-learning application
BEST@WestLB has been ready for a global
roll-out in the Bank since December 2002. Last
year training modules on investment banking
and global financial markets were successfully
completed. Further product training modules
will be added in 2003.

The Company People and Markets Financial Report Names and Locations
In addition to our e-learning application,
employees are able to avail themselves of our
regular training programme, which is tailored
to meet their specific needs and takes into
account the international orientation of the
Bank, particularly in terms of product training.
Language, behaviour and management seminars,
together with a wide range of external training
courses, complement the programme in support
of the personal and professional development of
our employees.
Promoting Young Talent and Higher
Qualification
Promoting and training young talent is a
cornerstone of our personnel policy. At the
end of 2002, a total of 153 young persons were
engaged in apprenticeship training to qualify as
bankers, office communications staff, graduates
in business administration and computer
specialists. Our subsidiary WestLB Systems is
responsible for the training and development of
junior staff in the IT field. A further 25 young
| Petra Steck Global Banking Support
You sometimes have to look twice to see what technology
can achieve in a modern bank. But actually it makes the
biggest contribution to safety, efficiency and the quality of
advice. Because financial innovations are viable only if they
can be adapted for units of the Bank. This is a task WestLB
is working hard for. MYBANK
people participated in a work-study programme
at WestLB Systems which combined on-the-job
experience with commercial information
technology studies. We are planning to offer
an equal number of apprenticeship training
places to young persons in 2003 as we did in
the previous year.
A total of 146 employees took advantage of
ongoing training opportunities to enhance their
professional qualifications in 2002, an increase
of 6.5% over the previous year.
Employer Branding and Personnel
Marketing
Our website is a frequent source of information
for applicants. An independent jury rated the
content of our career pages as excellent. We
use an international network of university
contacts to present WestLB AG to the universities,
combine research and teaching with practical
experience and recruit trainees and graduates
for our business units.
47

48
CampusCircle, our student support programme,
and Bankmasters, the bank management game,
are highly regarded among potential applicants.
A total of 295 students are currently enrolled on
the CampusCircle programme. All of them have
close links to WestLB AG, either because they
completed an apprenticeship training prior to
commencing their studies or were admitted to
the programme after successfully participating
in a work experience scheme in the Bank. More
than 100 CampusCircle students attended the
annual case study workshop in November 2002.
A total of 87 university graduates were hired
last year.
Equal Opportunities and Diversity:
Harnessing Potential
Promoting equal opportunities in the workplace
is a major objective of our personnel work and
is intended to enable us to harness the potential
of qualified young employees more effectively.
Nearly half of our staff are women, but they
continue to be under-represented in higher
positions, in particular involving management
tasks. We have therefore developed a mentoring
programme, the primary aim of which is to
| Jörg Stendel Security, Safety, Environmental
Learning is the future. The demands made on a bank and its employees are
growing constantly. We regularly initiate new programmes and projects to
ensure that laws and regulations are directly reflected in the banking processes.
This way, we always remain up to date. MYBANK
prepare qualified women for specialist and
management positions. It is a principle of our
personnel policy to fill as many vacant positions
as possible with our own staff, enabling us to
harness their existing expertise for the Bank and
at the same time open up fresh opportunities
for them.
The personal skills of our employees are also
key ingredients of the Bank´s success. Our
employees come from a wide variety of countries
and cultures, enabling us to draw on an array
of different talents. The aim of our diversity
programme is to create an environment in
which all employees are free to develop their
abilities and creativity – regardless of sex, age,
nationality or culture. We believe that a variety
of perspectives leads to creative and innovative
solutions – in the best interests of our customers,
the Bank and employees.
Private Pension Provision Expanded
For several years now we have offered our
employees the opportunity to convert a part of
their future remuneration into company pension
rights. The Deferred Compensation scheme has

The Company People and Markets Financial Report Names and Locations
proved to be very popular among employees.
A total of € 600,000 in wages and salaries was
converted into company pension entitlement
in 2002.
In addition to Deferred Compensation, our
employees now have a further possibility to
plan for their future retirement needs. Via our
subsidiary West Pensionfonds AG, we offer all
employees the possibility to accumulate additional
capital for their individual retirement plans
through deferred compensation and investing
in state-supported pension provision schemes
(Riester model). Interest in this additional form
of old age provision is strong, with almost 400
employees opting to join the programme in the
year under review.
Acknowledgement
2002 was a challenging year involving fundamental
changes for all of us. The division of
Westdeutsche Landesbank Girozentrale into three
independent credit institutions – Landesbank
NRW, Westdeutsche Landesbausparkasse (LBS)
and WestLB AG – made additional demands on
the employees of our Bank. We managed the
reorganisation of Westdeutsche Landesbank
Girozentrale using our own resources. We
would like to take this opportunity to express
our utmost gratitude to all our employees for
their efforts and commitment on behalf of
the Bank in 2002.
KEY STAFF FIGURES
2002 2001
Personnel expenses in the
WestLB Group (€ millions) 1,218 1,354
Staff in the WestLB Group
(annual average)
9,910 10,506
Staff in Banking Group* 8,779 9,465
– abroad 3,579 3,902
– Germany 5,200 5,563
WestLB AG staff 5,547 6,054
– abroad 2,083 2,170
– Germany 3,464 3,884
– apprentices and trainees 178 203
– male/female staff (in %) 54.6/45.4 54.5/45.5
* excluding jointly-managed companies
The employee representatives actively supported
the restructuring of the Bank, thereby ensuring
that the tight time schedule for the project
could be met. We were also able to rely on
the constructive cooperation of the employee
representatives with regard to the individual
restructuring measures, including the adoption
of a new service agreement. We would like
to thank the employee representatives for
their continual support and cooperation in an
atmosphere of mutual trust.
49

Clarity
The Financial Report summarises the
2002 financial year for the WestLB Group and describes
the economic environment.

The Company People and Markets Financial Report Names and Locations
Contents
52 Statement of Financial Condition
104 Balance Sheet
108 Statement of Income
110 Statement of Changes in Shareholders’ Equity
111 Notes to the Annual Accounts
162 Report of the Supervisory Board

52
WestLB AG Group Statement of Financial
Condition at December 31, 2002
WestLB Group
WestLB AG Group consists of WestLB AG Düsseldorf/Münster together with WestLB’s
242 affiliated companies (89 of which are consolidated) and one jointly managed company
with 10 subsidiaries.
WestLB AG, as the legal successor to Westdeutsche Landesbank Girozentrale, continues
to dominate the business activities of the WestLB Group; in terms of total assets before
consolidation, WestLB AG accounts for approximately 82.7%, while the proportionate
assets of the pro-rata consolidated jointly managed company account for 2.3%; Group
subsidiaries which are majority-owned by WestLB AG account for 15.0%.
Substantial changes can be noted in total consolidated assets as compared to December 31,
2001. This is due to the division of Westdeutsche Landesbank Girozentrale, as well as
the first-time inclusion of the Landesbank Rheinland-Pfalz and Landesbank Schleswig-
Holstein Groups as associated companies; previously, the Landesbanks were consolidated
on a pro-rata basis.
With the founding of WestLB Covered Bond Bank plc., Dublin, the Group has
strengthened its position in purchasing claims and securities of public-law debtors, as
well as refinancing these claims and securities through the issue of covered bonds.
WestLB AG Group’s revised strategy in Latin America took the form of restructuring the
Brussels-based BEAL Group and forming Banco WestLB do Brasil, São Paulo, to handle
BEAL’s Brazilian operations.
The following chart depicts the major companies of the WestLB AG Group and their
share in total consolidated assets:

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
COMPOSITION OF THE WESTLB GROUP
Total Assets Total Assets Changes Total Assets
WestLB WestLB Dec. 31, 2002 WestLB GZ
Group Group to Group
Dec. 31, 2002 Jan. 1, 2002 Jan. 1, 2002 Dec. 31, 2001
€ billions € billions in % € billions
WestLB AG,
Düsseldorf/Münster
WestLB International,
238.3 237.7 0.3 325.0
Luxembourg
Westdeutsche
ImmobilienBank, Mainz
15.3 15.4 – 0.6 15.4
(Group, pro rata) 8.0 8.2 – 2.4 8.2
WestLB Ireland, Dublin
WestLB Covered Bond Bank,
4,6 4.3 7.0 4.3
Dublin 1.8 0.0 – 0.0
BEAL, Brussels
WestLB (Italia) Finanziaria,
1.6 4.2 – 61.9 4.2
Milan
Banco WestLB do Brasil,
1.4 1.2 16.7 1.2
São Paulo
Landesbank
Schleswig-Holstein, Kiel
(Group, pro rata; incl.
1.2 0.0 – 0.0
Hamburgische Landesbank)
Landesbank Rheinland-Pfalz,
0.0 0.0 – 55.8
Mainz (Group, pro rata)
Other Banking Group
0.0 0.0 – 26.2
companies 11.8 11.9 – 0.8 12.0
Boullioun Group 2.8 2.7 3.7 2.7
Other Group companies 12.4 12.7 – 2.4 13.2
Consolidations – 33.6 – 34.2 – 1.8 – 36.3
WestLB Group 265.6 264.1 0.6 431.9
53

54
The New WestLB AG
WestLB AG came into being after its official formation on August 1, 2002, and subsequent
registration in the commercial registers of Düsseldorf and Münster on August 30, 2002.
For purposes of tax and commercial law, the establishment of the new WestLB AG as a
German stock corporation was backdated to January 1, 2002.
Based on the desire to make a clear separation between the public-sector operations
and commercial business of Westdeutsche Landesbank Girozentrale (WestLB GZ) and
to focus more closely on the business segments and functions of the Bank, WestLB was
divided into two legally separate institutions, the public-law Landesbank NRW and the
private-law WestLB AG, when the Act on Redefining the Legal Status of Public-Law
Banking Institutions in North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse
der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen) went into
effect on August 1, 2002. At that time, WestLB AG became a wholly owned subsidiary
of Landesbank NRW. LBS became an independent public-law institution and, because
the savings banks associations in North Rhine-Westphalia saw LBS’s business as a
strategic addition to their portfolio, they acquired it soon afterwards.
In addition to its function as a municipal bank and central institution for the savings
banks, the new WestLB will continue to concentrate on its strengths as an internationally
operating European wholesale bank for companies, banks and institutional investors.
To this end, the private-law WestLB AG now houses all commercial banking activities,
except for the mortgage bond (Pfandbrief) business. Such activities include commercial
and investment banking, as well as the equity investments in the Landesbanks of
Rhineland-Palatinate and Schleswig-Holstein, and in Westdeutsche ImmobilienBank.
All foreign subsidiaries, as well as branches and representative offices, will remain part
of WestLB AG. In accordance with its articles and bylaws, WestLB AG also houses all
municipal bank functions and the functions related to its role as a central institution for
the savings banks. WestLB AG’s registered office is in Düsseldorf and Münster.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
THE FUTURE STRUCTURE OF WESTLB
– Implementation of the Parent-Subsidiary Model –
WestLB
Covered
Bond Bank
Regional
Association of
the Rhineland
11.7%
“Institutional Liability/
Guarantor Liability”
Westdeutsche
Immobilien
Bank
Regional
Association of
Westphalia-Lippe
11.7%
State of North
Rhine-Westphalia
43.2%
Institutional Liability/Guarantor Liability
Landesbank NRW
� INVESTITIONS-BANK NRW + Wfa
� Public mortgage bond (Pfandbrief) business
� Equity investments (LEG, ILB Brandenburg,
casino and lottery holdings)
100%
WestLB AG
� Commercial banking activities
� Central institution for the savings banks
� Municipal bank function
WestAM WestLB
Systems
Savings Banks
and Giro
Association of
the Rhineland
16.7%
WestLB Int.,
Luxembourg
Savings Banks
and Giro
Association of
Westphalia-Lippe
16.7%
LB Schleswig-
Holstein
All of WestLB’s former public-sector business is concentrated in Landesbank NRW, one
of the largest banks of its kind in Germany. Landesbank NRW is owned by the former
guarantors of WestLB GZ. Their equity interests in the new entity are in proportion to
their former holdings in WestLB GZ.
In its function as state and municipal bank, Landesbank NRW is responsible for
supporting its owners in important tasks in the structural policy field. It houses the
activities of INVESTITIONS-BANK NRW (IB NRW), Wohnungsbauförderungsanstalt
NRW (Wfa) and the public mortgage bond (Pfandbrief) business.
In addition, Landesbank NRW’s holdings in the public realm are pooled in an Equity
Investments business unit. Such holdings include Investitionsbank des Landes
Brandenburg (ILB), Landesentwicklungsgesellschaft NRW (LEG), the casino and lottery
holdings, and the structural policy investments of INVESTITIONS-BANK NRW and the
equity investment in WestLB AG.
LB Rheinland-Pfalz
55

56
EU Proceedings
European Court Overturns Commission Decision of 1999
The recent history of WestLB has been characterised not only by the challenges posed
by the market, but also by the questions raised about the integration of the Wohnungsbauförderungsanstalt
(Wfa), as well as about institutional and guarantor liability. As
Germany’s largest and most international Landesbank, WestLB has been the centre of
attention – often as a representative of the entire public-law financial sector – in the
struggle to settle the controversy over key issues facing the European banking market.
In 1992 the State of North Rhine-Westphalia integrated the Wohnungsbauförderungsanstalt
(Wfa) into WestLB as a contribution in kind, a move which brought WestLB roughly
€ 2 billion in additional liable capital. This capital was a key factor in WestLB’s growth
and the long-term increase in WestLB’s value in the nineties. The Federal Banking
Supervisory Office and the Directorate-General of the European Commission responsible
for banks expressly upheld the recognition of Wfa’s assets as qualified contributions
towards WestLB’s capital adequacy. Later on, some of the other federal states took
similar measures for their Landesbanks.
In 1994 Germany’s Federal Association of Private Banks (BdB) filed a complaint with
the European Commission which challenged the remuneration for the Wfa capital.
Their complaint resulted in the Commission’s decision of 1999 that the integration
of Wfa was to be regarded as impermissible aid. The sole basis of the Commission’s
decision was that the remuneration for the Wfa integration was too low.
The German Federal Government, State of North Rhine-Westphalia and WestLB filed
appeals against the Commission’s decision with the European Courts, in which they
argued that the Commission’s decision was not proper from a business standpoint
or from the standpoint of the letter of the law and the laws on state aid. A number of
analyses and reports from economic and tax experts supported their view.
Nevertheless, the Bank had no choice under European law but to accept and implement
the Commission’s decision, regardless of the appeals filed with the European Courts. The
Bank decided to assign an added portion of its increase in value since the Wfa integration
to the State of North Rhine-Westphalia. The European Commission found this form of
implementation unacceptable and subsequently filed suit with the European Court of
Justice against the Federal Republic of Germany. The basis of the Commission’s claim
was Germany’s incorrect transposition into national law of an EU decision.
The European Court of Justice handed down its ruling in the matter of transposition
on December 12, 2002. Technically, the Federal Republic of Germany did not prevail.
However, the Court of Justice also ruled that a transposition involving no cash was
fundamentally compatible with Community law. This was a key point where WestLB
and the European Court of Justice agreed, namely that non-cash solutions were
permissible.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
In a decision dated March 6, 2003, the European Court ruled on the crux of the
controversy surrounding the Wfa integration, i.e. whether the contribution of Wfa’s capital
and the remuneration for such contribution should be regarded as impermissible state
aid.
Here, the Court held that the decision of the European Commission in 1999 was invalid,
because the Commission did not give sufficient reasons with respect to the 12% base
rate of return and 1.5% risk premium it alleged should have been the basis of the
remuneration.
Since both of these parameters were of paramount importance to the economic analysis
underlying the Commission’s strategy, the Court was unable to make any definitive
judgment on the reasonableness of the Wfa remuneration.
However, the Court also explained that it was not permitted to substitute its own
economic analysis for the Commission’s, and by doing so, afforded the Commission
considerable leeway in the economic points of the matter at hand, points which are
taken out of the realm of the Court’s judgement as a result.
Therefore, it is to be expected that the Commission will follow the standard procedure
in such cases and issue a new decision, since its original decision was overturned.
Elimination of Guarantor Liability and Institutional Liability
Separately from the two proceedings described above, the European Banking Association
filed its own complaint with the European Commission, the goal of which was to have
institutional liability and guarantor liability for public-law banks recognised as state aid
and held to be at odds with European competition law. The Commission agreed and
demanded that the Federal Republic of Germany eliminate these liability mechanisms.
In order to protect the public-law banks from the ongoing pressure of lengthy court
battles and to keep the market from suffering as a result, WestLB reached an out-of-court
settlement with the Commission. The settlement provides for the continued existence
of public-law banks; however, after a transitional phase ending on July 18, 2005,
institutional liability and guarantor liability will be eliminated. The new liability structures
taking their place will be more akin to the relationship between a shareholder and a
corporation organised under private law.
The guarantors of public-law banks will retain the right to provide their institutions
with capital, but they will have to do so under prevailing market terms in order to
comply with European aid law.
57

58
The rules and transitional periods set forth in the understanding reached with the
Commission are as follows:
All liabilities incurred by July 18, 2001 remain fully covered by institutional and guarantor
liability until the time they mature. For creditors of banks that were supported by
institutional and guarantor liability, such as WestLB AG, this means that there will be
no changes for liabilities made by the July 18, 2001 deadline (i.e. these claims are
grandfathered in).
Institutional liability and guarantor liability will remain in effect in their present form
during the transitional period, which lasts from July 19, 2001, through July 18, 2005.
Any liabilities incurred during this transitional period are completely covered by
guarantor liability so long as they mature by December 31, 2015.
With respect to these liabilities and up until the time that all such liability items have
matured, the guarantors will completely satisfy the obligations arising from their
guarantor liability, as soon as they have properly determined and set forth in writing
that the creditors of such liabilities cannot be satisfied from the respective institution’s
assets. This explicitly includes the possibility of servicing debts precisely at the same
time they fall due. The giving of a notice as normally required under aid law will not be
necessary.
The mandatory rules and regulations have been established in the applicable state
laws.
Development in the Year Under Review
An extremely tough market environment adversely affected WestLB Group’s operating
result in the year under review, driving it down 50.8% to € 366 million. A particular
indicator of the markets’ weakness was the decline in net interest income. Significant
cost savings were achieved in personnel and operating expenses. However, considerable
restructuring expenses had a negative impact on results.
Due to the weak economy, the aftermath of accounting scandals and the slump on the
international financial markets, risk provisions and the result of evaluation increased from
€ 566 million to € 1,946 million; this includes provisions set aside in connection with risks
that became apparent in early April 2003. WestLB Group’s net loss for the year of € 1,730
million was offset with funds from Group reserves and reserves of WestLB AG.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Economic Setting
2002 was the second year in a row to pose formidable challenges to the financial markets.
Credit business in Germany and Europe faced extreme consolidation pressure, and
international wholesale banks in particular posted dramatic losses in their earnings.
While the world economy made a speedier and even stronger (at least initially) recovery
from the sharp downturn in 2000/2001 than was generally expected following the
terrorist attacks of September 11, 2001, a broad-based improvement did not materialise.
Instead, in the second half of the year the growing momentum already started to slow
noticeably and concern about a global recession with deflationary tendencies mounted.
At a yearly average of 2.75%, growth in the gross world product was only slightly
higher than in the previous year. At 0.2% and 0.8% respectively, the growth rates in
Germany and the euro area were even lower than in 2001.
In 2002 the United States emerged from the mild recession, but the basis for the
recovery was narrow and the recovery itself has been very unstable. Periods in which
the economy picked up were quickly followed by periods of weakness. Nevertheless,
the U.S. gross domestic product averaged growth of 2.4% for the year, exceeding GDP
growth in Western Europe and Japan by a substantial margin. However, the overall
economic imbalances increased perceptibly. The U.S. budget deficit grew to more than
3.0% of the country’s gross domestic product, while the current account deficit climbed
to 4.75%.
The recent downslide in stock prices has not helped matters; the crisis of confidence in
the financial markets, which, now three years old, is the longest and most widespread
in post-war history, was fuelled by the accounting scandals of some major corporations
and the increasing likelihood of military intervention in Iraq. In addition, doubts about
the effectiveness of monetary policy decisions grew. The cumulative effect of all this
bad news was to dampen the mood among companies and private households and to
cripple economic activity around the globe.
In response to these developments, the central banks cut interest rates even further. The
key interest rates in the U.S. and Europe are now at all-time lows. The same holds true
for the yields on government bonds. Government bonds profited from investors’ desire
to flee to save havens, but their yields dropped noticeably more than the yields on
corporate bonds.
Future developments in the world economy and international financial markets will
depend in large measure on how the conflict with Iraq is resolved. If conditions are
favourable, the risk premium on oil prices will disappear and the price for a barrel of
crude will drop to US$ 20 or less. WestLB believes that such a drop would trigger a
turn of events on the stock markets and thus cause a noticeable improvement in the
59

60
world economic climate. In this kind of environment, the exceptionally expansionary
moves in monetary policy around the world would be likely to gain in effectiveness.
However, as long as the political future of Iraq remains uncertain, the economy and
financial markets will remain hard-hit.
Business Development
The key course set by the Bank in 2002 was the successful implementation of WestLB’s
future structure, with the division of WestLB GZ into the independent institutions
Landesbank NRW, LBS Westdeutsche Landesbausparkasse and WestLB AG. Running
parallel to the Bank’s restructuring is a comprehensive programme on risk-return
management for the years 2002 and 2003. In the year under review, the programme’s
main goal was to reduce costs and increase efficiency within the Bank. In keeping with
its strategic orientation as a municipal bank and central institution for the savings
banks, WestLB also stepped up its cooperation with the savings banks and pressed
ahead with the business model of operating as a major wholesale bank.
The pace of personnel reductions, which encompasses the elimination of 1,500 jobs,
was accelerated, and final implementation of the Group’s objectives has been brought
forward from 2004 to 2003. WestLB came significantly closer to achieving its goal in
the year under review. The number of employees in the Group declined by 596 to 9,910,
while personnel expenses decreased by 10.0% to € 1,218 million. A reduction in IT
expenses, among other things, helped generate savings in the area of operating expenses.
To supplement the cost-saving measures already in place, the Bank also introduced
a programme to cut back on other operating expenses. This programme should result
in additional significant savings.
Given the continued weakness of the market, cost-saving measures also affected the
equities and investment banking business of WestLB Panmure. The goal of reducing
the cost base by 16% was met and exceeded in 2002. However, because the market
remains weak, it will be necessary to take additional measures in 2003.
The Bank trimmed its domestic branch network by closing the branches in Bielefeld and
Essen. By centralising back office operations and revamping domestic loan processing,
it also made the network substantially more cost-efficient. A review of the Bank’s foreign
branch network led to the closing of the branch in Izmir, with the Istanbul Branch now
handling that business. The Bank also worked on centralising other functions, including
certain trading and funding activities.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
WestLB’s registered office is in Düsseldorf and Münster. In Germany, WestLB maintains
branch offices in Berlin, Dortmund, Frankfurt am Main, Hamburg and Cologne. Elsewhere
in Europe, the Bank is supported by branches in Istanbul, London, Madrid, Milan and
Paris. Outside Europe, customers are serviced by offices in Hong Kong, New York,
Singapore, Shanghai, Sydney, Tokyo and – as of January 2003 – Toronto. There are
representative and sales offices in other major financial centres.
WestLB’s business in South America has undergone restructuring, with the Bank
acquiring Banco WestLB do Brasil S.A. from its subsidiary BEAL. The strategy of
handling business in Argentina through a branch of BEAL is being abandoned. In future,
customer service in the region will be handled by a representative office in Buenos
Aires.
The Clients business group was reorganised and clients were reassigned to new
customer groups. The strategy of sub-dividing Western European corporate clients
into industry and sector groupings will remain intact.
As planned, the domestic private banking business was sold to a private bank as of
April 1, 2002. As part of its strategic repositioning, WestLB had decided to withdraw
from the private banking business altogether. The securities account business for other
private clients was closed as of December 31, 2002, and account management for
private customers will end on June 30, 2003. The sale of WPS Bank to North Rhine-
Westphalia’s two savings banks associations was also part of WestLB AG’s new strategic
focus.
In order to strengthen its market position in core businesses, WestLB has dovetailed
various business units with its special finance business. The Global Structured Finance
business unit and the Asset Backed Securities unit have been grouped together in a
new business unit entitled Global Specialised Finance. GSF also houses the commodity
finance and forfaiting businesses. Credit derivatives operations were transferred to the
Global Financial Markets business unit. Moreover, it was decided to concentrate the
principal finance business in a separate business unit. Overall, these changes are
designed to improve clients’ access to products and to create additional synergies.
The founding of Dublin-based WestLB Covered Bond Bank was in response to the rapid
growth experienced on the European market for secured bonds. The Covered Bond
Bank will function as a centre of expertise for government financing, including savings
bank refinancing. Irish covered bonds offer investors and issuers an attractive alternative
to German mortgage bonds (Pfandbriefe). The new bank’s first issue is expected to
take place within the first six months of 2003.
61

62
As the central institution for the savings banks, WestLB will step up its collaborative
efforts with the savings banks. To that end, the Bank has signed a framework agreement
with the savings banks in North Rhine-Westphalia that sets forth their future cooperation
in the area of product offerings and joint acquisition activities.
In 2003 the Bank will continue with its restructuring and strategy measures and
will finalise its corporate policy strategy for the period following the elimination of
institutional and guarantor liability.
Environmental Protection as a Management Task
WestLB Group is aware of its responsibility to society and the environment and
conducts its business in accordance with the goals of sustainable development. By
signing the United Nations Environment Programme’s (UNEP’s) Statement by Banks
on the Environment and Sustainable Development at the beginning of 2002, one of the
promises that WestLB made was to comply with all regional, national and international
environmental requirements applicable to its business activities and services. For example,
all finance commitments for projects that impact the environment are extensively tested
for their compliance with all official environmental protection guidelines. Environmental
criteria are also included in the Bank’s credit risk strategy, as well as the credit ratings
given to customers. Before WestLB agrees to provide financing for international energy
projects, the recipients of the financing must not only show their compliance with the
applicable national laws on environmental protection; they must also demonstrate
compliance with the environmental and social standards established by the World Bank.
WestLB offers its customers proprietary products and research on socially responsible
and environmentally friendly investment strategies. As the first underwriter to
do so, WestLB issued certificates on the recently formed Dow Jones Euro STOXX SM
Sustainability Index in April 2002. The index comprises Europe’s leading companies
in terms of sustainability principles. When ÖKO-TEST magazine compared the
sustainability and environmental investment products available on the market in
its February 2003 issue, WestLB’s certificates were ranked first.
The WestLB foundation Zukunft NRW (The Future of North Rhine-Westphalia) is
spearheading efforts towards change with targeted promotions and projects, particularly
those aimed at protecting the environment. The goal of the AKWA 2100 project is to
find alternatives to municipal water supply and sewage disposal arrangements by
sensitising decision makers and other affected parties to the need for a long-term
strategy on developing environmentally sound urban infrastructure systems for water.
The goal of the Kälte aus Wärme (Cold out of Heat) project is to find a way to use
waste heat or heat generated by solar power to produce cold in a way that could save
resources and protect the environment.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The Group-wide Guidelines for Environmentally Friendly and Sustainable
Development, which form the basis of the Bank’s environmental management system,
are an expression of the Bank’s commitment to its social responsibility. One important
aspect of these guidelines is environmental protection within the Group. The Bank has
regularly prepared environmental responsibility reports on its operations since 1997.
These reports give an account of all of WestLB’s environmentally relevant data, which
are captured, documented and evaluated in accordance with uniform standards. In
addition, business processes are critiqued on the basis of environmental factors and the
results are used to set goals and develop measures aimed at reducing the consumption
of resources within the Group. The environmental responsibility report published in
2002 on the Bank’s 2001 operations complied with the Federal Environmental Ministry’s
requirements for qualified environmental responsibility reports and is being updated.
WestLB also promotes environmental protection within its ranks by offering information
and training seminars to employees.
Employees
The foundation for WestLB Group’s success is to be found in its highly skilled employees,
who perform the demanding tasks of an internationally operating bank with dedication
and creativity. In order to support the employees, WestLB offers a wide array of personnel
development tools.
Personnel Development Tools
In the context of the restructuring which has taken place, WestLB has incorporated
a three-tier support programme called Managing the Transition into its personnel
development programme. The programme contains modules on advice, training and
systems/tools. Through change, project and process management, the Bank is supporting
the business groups with sets of measures designed to help them with everything from
conducting workshops and holding training seminars to managing projects.
The e-learning application BEST@WestLB has been available to Bank employees since
its global roll-out in December 2002. In the year under review, training modules on
investment banking and global financial markets were successfully introduced. For
2003 additional product training modules are being developed.
In addition to the content offered through BEST@WestLB, employees have access to
the Bank’s regular training programme, which is tailored to meet their needs and takes
into account the international scope of the Bank, particularly in terms of product training.
Employees are supported in their personal and professional development with a number
of additional internal and external training opportunities, including language, behaviour
and management seminars.
63

64
Promoting Young Talent and Higher Qualification
Promoting and training young talent is a cornerstone of WestLB’s personnel policy. As
of the end of 2002, the Bank was training 153 young persons to become bankers, office
communications staff, computer specialists and graduates in business administration.
The plan is to offer as many apprenticeship training places in 2003 as were offered in
2002.
In the year under review, 146 employees took advantage of ongoing training
opportunities to enhance their professional qualifications, an increase of 6.5% over
the previous year.
Equal Opportunities and Diversity: Harnessing Potential
Promoting equal opportunities in the workplace is an express goal of WestLB’s
personnel work and is intended to enable the Bank to tap the potential of qualified
young employees more effectively. Nearly half of the staff are women, but they continue
to be under-represented in higher positions, in particular involving management tasks.
As a result, one of the goals of the mentoring programme introduced in 2002 is to
prepare qualified women for specialist and management positions.
The personal skills of employees are also key ingredients of WestLB Group’s success.
Employees come from a wide variety of countries and cultures, enabling the Group to
draw on an array of different talents. The aim of the diversity programme is to create
an environment in which all employees are free to develop their abilities and creativity –
regardless of sex, age, nationality or culture.
Socially Responsible Workplace Reduction
The Bank has introduced a rigorous cost-cutting programme, which includes a reduction
in headcount by 1,500 throughout the Group. With the help of state-of-the-art personnel
tools and close collaboration with the employee representatives to develop an appropriate
personnel concept, WestLB was able to reduce its workforce in the year under review
in a socially responsible manner.
The total number of employees dropped by 5.7% in 2002. The average number of
employees was 9,910. The Notes contain a detailed breakdown of this average.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Accounting Methods and Reporting Standards
The balance sheet and statement of income were prepared in accordance with the
provisions of the German Commercial Code (HGB), German Stock Corporation Act
(AktG), the Ordinance Regarding Accounting for Banks and Financial Services
Institutions (RechKredV) and the applicable standards and opinions of Germany’s
Institute of Certified Public Accountants. In its risk report, WestLB is guided by
accounting standards 5–10 of the German Accounting Standards Board (Deutscher
Standardisierungsrat, DSR).
Due to the division of WestLB GZ in 2002, as well as the backdating of WestLB AG’s
formation to January 1, 2002, there are no original prior year results with which to
compare the results for 2002. In the following analysis, the results for 2001 represent
data of the WestLB GZ Group which has been adjusted for the effects of the division.
Statement of Income
WestLB Group’s income was affected by two major factors in the year under review:
First, the economy remained weak around the globe. Coupled with the protracted
uncertainty on the capital markets and increasing caution on the part of investors,
this led to significantly fewer business opportunities and thus to losses in income.
Moreover, the resulting drop in numerous companies’ credit ratings, as well as a series
of corporate scandals, forced WestLB Group to increase the risk provisions in its lending
business.
Second, WestLB Group systematically pursued and forged ahead with the risk-return
management strategy introduced in the previous fiscal year, and enjoyed a marked
decline in operating expenses as compared to 2001. However, in order to effect
sustainable reductions in future operating expenses, the Bank had to incur a series
of one-time charges that had a negative impact on the bottom line.
The resulting net loss for the year of € 1,730 million was offset with Group reserves and
reserves of WestLB AG; the obligations arising under profit participation certificates are
thus being serviced in the agreed-upon manner.
For comparison purposes, the figures on the 2001 Statement of Income have been
adjusted for the effects of deconsolidation and at-equity consolidation, as well as
differences arising from the division. In doing so, the companies consolidated as of
2002 helped determine which companies’ figures to use for 2001.
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STATEMENT OF INCOME
Net Interest Income
The main factor behind the lower operating result of € 366 million was a drop in net
interest income. Net interest income was € 1,995 million in the previous fiscal year, but
fell to € 1,541 million in the year under review. Fewer opportunities for interest-rate
arbitrage and reduced contributions from asset backed transactions played a key role.
Net Commission Income
Net commission income fell 10.5% on the previous year. Because of the market,
income from the securities and securities underwriting business was again low.
Net Income from Trading Operations
2002 2001 Changes
€ millions € millions € millions %
Net interest income 1,541 1,995 – 454 – 22.8
Net commission income 692 773 – 81 – 10.5
Net income from trading operations 177 185 – 8 – 4.3
Personnel expenses – 1,218 – 1,354 136 – 10.0
Other administrative expenses – 1,056 – 1,260 204 – 16.2
Other operating expenses/income
Operating result before risk provisions/
230 405 – 175 – 43.2
result of evaluation 366 744 – 378 – 50.8
Risk provisions/result of evaluation
Operating result after risk provisions/
– 1,946 – 566 – 1,380 –
result of evaluation – 1,580 178 – 1,758 –
Extraordinary result – 88 – 35 – 53 151.4
Profit/loss for the year before taxes – 1,668 143 – 1,811 –
Net income from trading operations was marked by contradictory trends. On the one
hand, WestLB AG reported growth in its foreign exchange result and increased income
from trading in interest rate products. On the other hand, weak stock markets and the
strain in Latin America’s capital markets caused by the crisis in Argentina adversely
affected the consolidated result, which dropped by € 8 million to € 177 million.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Administrative Expenses
In order to curb its administrative expenses, WestLB Group introduced sweeping
cost-saving measures. The systematic review of cost structures resulted in a substantial
reduction in both personnel expenses and other administrative expenses.
At € 1,218 million (2001: € 1,354 million) personnel expenses were substantially lower,
not only because of the drop in recurring payroll expenses resulting from headcount
cuts, but also because there were fewer allocations to reserves to cover performancebased
compensation.
Other administrative expenses also fell sharply, down € 204 million to € 1,056 million
as compared to the previous year. One of the main factors in this drop was reduced
expenditure on IT services. At the same time, WestLB Group carried out various
projects in the year under review to maintain and expand the capability of its IT
infrastructure, including investments in office solutions; the solutions should help
reduce fixed IT costs even further in the years ahead.
Other Operating Surplus
The main factor behind the sharp drop in other operating surplus by € 175 million
to € 230 million was the lack of income that had been realised in 2001 when the Bank
revamped its real estate strategy.
Risk Provisions/Result of Evaluation
The risk provisions/result of evaluation comprise the following line items from the form
used to prepare the Group statement of income:
� Income from the release of the special item with partial reserve character and the
corresponding expense item
� Write-downs and other allowances for claims and certain securities, as well as
allocations to provisions for credit risks, and the corresponding income item
� Income from additions to equity investments in affiliated and non-affiliated companies,
as well as securities treated as fixed assets, and the corresponding expense item
� Expenses resulting from the assumption of losses
Risk provisions and the result of evaluation increased by € 1,380 million to € 1,946 million
as compared to the previous year:
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RISK PROVISIONS/RESULT OF EVALUATION
The result of provisions for credit risks rose to € 1,985 million, which represents an
increase of € 1,216 million over the previous year. The main reason for the increase
can be found in the amount of provisions set aside because of borrowers’ credit rating
problems, which rose to € 1,835 million in the year under review. The risks themselves
are the result of a weak economy, accounting scandals and corporate fraud. A substantial
amount of the provisions were set aside for loans to North American and UK companies
active primarily in the energy and telecommunications sectors. In order to cover latent
credit risks, the Bank allocated more than € 200 million to its reserve risk provisions/
general provision for loan losses; provisions have additionaly been set aside in connection
with risks that became apparent in April 2003.
At € 178 million, the result of participations was slightly above the previous year’s level.
Capital gains, the release of reserves in the participations portfolio and write-downs
on equity investments necessitated by the weak stock markets were the main factors
influencing the result.
At € – 139 million, the result of securities was well below the previous year’s result.
Write-downs on German stocks, North American bond holdings held in the investment
portfolio and fund investments were the principal causes.
Extraordinary Result
The staff reductions made because of organisational measures and the concentration
on core businesses resulted in considerable one-time expenditures, which also included
the foreseeable costs for restructuring measures not yet taken. WestLB also contributed
to the flood relief campaign sponsored by the German Savings Banks and Giro Association
(Deutscher Sparkassen- und Giroverband, DSGV).
The sale of the private banking business that was planned as part of the strategic focus
on core businesses resulted in extraordinary income.
Taxes on Income and Revenues
2002 2001 Changes
€ millions € millions € millions %
Result of provisions for credit risks – 1,985 – 769 – 1,216 158.1
Result of participations 178 141 37 26.2
Result of securities – 139 62 – 201 –
Risk provisions/result of evaluation – 1,946 – 566 – 1,380 243.8
Despite an unsatisfactory result overall because of the prevailing market conditions,
some foreign locations posted good results. As a result, the taxes on income and
revenues were € 62 million in the year under review.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Segment Results
Profit is planned and managed on the basis of profit centre accounting within the
WestLB Group. The results of the various profit centres are combined into segments
that represent the main businesses and areas in which the WestLB Group is active.
With the WestLB Group’s system of management, a distinction is made between the
Banking Group, which includes all companies active in the lending and finance business,
as well as those that support the Group’s banking operations, and other Group companies,
which are more involved in segments that are not traditionally part of banking. While
the results of these other Group companies are listed separately in segment reporting,
the results of the Banking Group companies are captured in the relevant segments.
The segments are formed on the basis of the business orientation and market presence
of business units or the functional collaboration of organisational units. The various
segments of the WestLB Group are as follows:
SEGMENTS IN THE BANKING GROUP
Lending Special Finance
Central Credit Management Global Specialised Finance
Credits Germany/Europe International Trade & Commodity Finance
Westdeutsche ImmobilienBank (WIB)
Credits America
Credits Asia/Pacific
Trading Services
WestLB Panmure Global Asset Management
Global Financial Markets Banque d’Orsay
WestLB International, Luxembourg Payments, CashManagement & Card Services
Global Back Office
Risk Management Support & Control
Other business units
Equity Investments Internal Service Units
Equity Investments Communications/Economics
Landesbank Rheinland-Pfalz Group Development
Landesbank Schleswig-Holstein Group Organisation
Group Finance
Other Human Resources
Asset & Liability Management Internal Service
Client business units Group Information Management
Other business units WestLB Systems/IT
Consolidations Other business units
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SEGMENT RESULTS
The following table represents an overview of the segments’ contributions towards the
consolidated result. The income shown includes net interest income, net commission
income, net income from trading operations, as well as other operating surplus (which
includes non-income taxes). In terms of the income reported for the trading segment,
the net income from trading operations included there has been marked to market;
the adjustment made for purposes of the published accounts is captured under Other.
Expenses include personnel expenses and other administrative expenses.
€ millions Income Expenses Risk Provisions/ Net Income/Loss for
Result of Evaluation incl.
Extraordinary Result
the Year before Taxes
2002 2001 2002 2001 2002 2001 2002 2001
Lending 477.8 515.4 – 197.2 – 208.6 – 625.6 – 174.3 – 344.9 132.5
Special Finance 804.7 904.0 – 200.9 – 256.1 – 1,065.2 – 130.5 – 461.4 517.4
Trading 1,010.3 1,262.5 – 1,030.6 – 1,064.1 – 348.3 – 106.3 – 368.6 92.1
Services 178.1 170.9 – 187.6 – 221.9 – 26.5 37.0 – 36.0 – 14.0
Equity Investments – 51.2 28.3 – 19.2 – 16.4 386.3 142.1 316.0 154.0
Internal Service Units 908.4 1,036.9 – 1,183.4 – 1,283.7 – 31.2 4.9 – 306.3 – 241.9
Other – 633.0 – 649,9 598.1 488.2 – 275.4 – 365.0 – 310.3 – 526.7
Banking Group 2,695.1 3,268.1 – 2,220.8 – 2,562.6 – 1,985.9 – 592.1 – 1,511.5 113.4
Other Group companies 293.5 380.3 – 212.0 – 260.9 – 112.6 – 30.0 – 31.0 89.4
Consolidations (Group) – 348.9 – 290.4 158.9 209.5 65.1 21.1 – 125.0 – 59.8
Group 2,639.7 3,358.0 – 2,273.9 – 2,614.0 – 2,033.4 – 601.0 – 1,667.5 143.0
The segments’ cumulative operating result was marked by a reduction in income that
could not be offset by the cost savings achieved in the year under review, despite the
fact that some of the savings were substantial. Also affecting the result was the sharp
rise in risk provisions over the previous year, which led to a net loss for the year before
taxes of € 1,668 million. The one-time expenditures related to the restructuring
measures introduced also had an adverse effect.
Despite the unfavourable climate of the overall economy, the Lending segment was able
to post an operating result before risk provisions that was slightly above expectations.
Of course, there were substantial defaults to take into account, as well as greater
allocations to provisions to account for likely risks. The headway made in having the
lending business take on a supporting role in the area of cross-selling also took away
from income, given the volume of the measures involved. However, the same measures
once again led to a reduction in the capital tied up in the Lending segment.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Segment Principle I Capital Return on Principle I Cost-Income Ratio Employees
Capital (Full-Time)
€ millions in % in %
2002 2001 2002 2001 2002 2001 2002 2001
Lending 3,316.7 3,841.0 – 9.6 3.4 41.3 40.5 702 828
Special Finance 1,903.1 2,543.7 – 21.5 21.3 25.0 28.3 671 626
Trading 3,086.6 3,704.5 – 8.2 2.4 102.0 84.3 2,170 2,433
Services 199.5 183.8 – 18.9 – 7.2 105.3 129.8 794 953
Equity Investments 4,389.2 3.910.4 7.7 4.2 – 37.4 58.0 82 78
Internal Service Units 57.2 42.0 > – 100 > – 100 130.3 123.8 2,914 3,048
Other 490.6 575.4 > – 100 – 68.6 94.5 75.1 1,155 1,255
Banking Group 13,442.9 14,800.8 – 10.2 0.8 82.4 78.4 8,488 9,221
Business in the Special Finance segment was similar to that in the Lending segment.
The operating result surpassed the target by approximately 9%. However, the expense
for risks, due in part to corporate scandals, was immense. Nevertheless, the strategic
importance of the Special Finance segment remains intact, as the increase in the
number of staff employed in the segment reflects. Meeting the objectives for expanding
business and the favourable cost-income ratio (25%) prove that WestLB is capable of
exploiting the existing market potential in a cost-effective manner.
The Trading segment continued to be at the mercy of an extremely unfavourable mood
on the money and capital markets. One way in which the WestLB Group responded to
the markets’ persistent weakness was to push ahead with staff reductions in the segment.
It also adjusted performance-based compensation accordingly. Despite these moves,
however, it was not possible to offset the slump in income and the sharp deterioration
of risk provisions/result of evaluation as compared to the previous year.
Business in the Services segment was unsatisfactory. Global Asset Management, the
activities of which were pooled under WestAM Holding GmbH in the previous year, is
still reporting a deficit because of start-up losses and the continuing difficult market
environment. Results in the Payments, Cash Management, Card Services unit would
have stayed at last year’s positive level if it were not for the restructuring expenses
incurred. As a result, it also contributed to the overall loss in the Services segment.
At € 316 million, the result in the Equity Investments segment was much higher than
in the previous year. The business of Equity Investments is marked by substantial capital
gains, but it also faces high risk expenses, depending on market developments. The
year 2002 marked the first time that the business of Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein was captured in this segment. This means that the two
Landesbanks are no longer being consolidated pro rata, but at-equity.
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The Internal Service Units provide services for the Group’s client and product
units. The services are charged to the business units that request them on the basis
of internal prices. The internal prices correspond to market prices, or where this is not
possible, they reflect similar market prices. This procedure ensures that the allocation
of needed resources is economical. It also encourages a cost-conscious approach to
the use of internal services and creates an incentive for providing services on a more
cost-effective basis. The results of this segment chiefly reflect the overhead costs that
could not be charged to other units. In the year under review, the result was also
affected by division-related effects and the effects of restructuring.
The main items included in the Other segment are the consolidations at the Banking
Group level. These include the netting of income and expenses, of intra-group results
and capital, as well as the netting of internally generated income and expenses necessary
for creating an accurate picture of profit centre results. The expenses of the client
business units, which represent the Group’s selling expenses, are captured here.
The Other segment also includes the income-reducing adjustments made to keep the
marked-to-market segment results in line with the valuation guidelines of the German
Commercial Code (HGB). Allocations to reserves under § 340 (f) of the German Commercial
Code (HGB), profit/loss effects from the provisions for country risk and profit components
that cannot be directly attributed to other segments are also reported in the Other
segment.
Balance Sheet
The items on the WestLB AG Group’s balance sheet underwent only minor changes in
2002. The structure of invested funds changed, in that liquid funds (cash, debt issues
and bills) and claims on banks increased, while claims on customers and securities/
equalisation claims decreased. The issue of bonds was increasingly used as a source
of refinancing.
After the division and at-equity consolidation of Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein, key items on the balance sheet are as follows:

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
ASSETS
Dec. 31, 2002 Jan. 1, 2002 Changes
€ billions € billions € billions %
Cash, liquid debt issues and bills 10.7 6.4 4.3 67.2
Claims on banks 77.0 68.3 8.7 12.7
Claims on customers 88.8 93.4 – 4.6 – 4.9
Securities/Equalisation claims
Equity investments in associated,
72.8 77.5 – 4.7 – 6.1
affiliated and non-affiliated companies 6.4 6.1 0.3 4.9
Trust assets 0.5 0.5 0.0 0.0
Fixed assets 2.8 2.7 0.1 3.7
Other assets 6.6 9.1 – 2.5 – 27.5
Total assets 265.6 264.1 1.5 0.6
LIABILITIES
Dec. 31, 2002 Jan. 1, 2002 Changes
€ billions € billions € billions %
Liabilities to banks 118.8 108.3 10.5 9.7
Liabilities to customers 63.8 73.2 – 9.4 – 12.8
Certificated liabilities 58.1 54.4 3.7 6.8
Trust liabilities 0.5 0.5 0.0 0.0
Other liabilities
Subordinated liabilities/
11.5 12.5 – 1.0 – 8.0
Profit participation capital
Equity capital/
7.6 8.0 – 0.4 – 5.0
Fund for general bank risks 5.3 7.2 – 1.9 – 26.4
Total liabilities 265.6 264.1 1.5 0.6
Contingent liabilities 17.3 18.2 – 0.9 – 4.9
Other commitments/Credit commitments 78.2 94.2 – 16.0 – 17.0
Administered funds 35.8 39.7 – 3.9 – 9.8
Business volume 396.9 416.2 – 19.3 – 4.6
Credit volume was roughly € 261.3 billion at December 31, 2002, which meant that the
amount of risk-weighted assets declined slightly. Claims were up by a narrow margin;
irrevocable credit commitments dropped noticeably.
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WestLB continued to strengthen its market position in the area of special finance and
project finance. The projects for which financing is sought differ from region to region.
In Asia, the emphasis is on ports and power station construction. In North America,
the majority of deals involve the energy markets, while in Europe the focus is on the
telecommunications sector. Infrastructure and aircraft finance/leasing are also popular.
In the course of 2002, WestLB AG continued to provide financing for cross-border leasing
deals. In the last two deals, for example, the cities of Dortmund and Essen leased their
rail infrastructure to U.S. investor trusts. At US$ 1.8 billion and € 1.4 billion respectively,
these transactions were the largest U.S. cross-border transactions that were made with
a German city in 2002. WestLB executed payment undertaking agreements for the
cities of Dortmund and Essen.
CREDIT VOLUME
The credit volume includes € 49.6 billion in repurchase agreements, of which € 24.1 billion
was transacted with banks. Given the anticipated entry into force of Basel II in 2007,
the security for loans has become even more important.
Securities Holdings
Dec. 31, 2002 Jan. 1, 2002 Changes
€ millions € millions € millions %
Claims on banks 77,039 68,315 8,724 12.8
Claims on customers 88,762 93,440 – 4,678 – 5.0
Contingent liabilities 17,341 18,231 – 890 – 4.9
Irrevocable credit commitments
Credit volume carried
78,200 94,231 – 16,031 – 17.0
on the balance sheet 261,342 274,217 – 12,875 – 4.7
Derivatives (credit risk equivalents) 7,554 7,178 376 5.2
Total credit volume 268,896 281,395 – 12,499 – 4.4
The total holdings of € 67.6 billion in bonds and other fixed-income securities
include money market instruments in the amount € 1.9 billion, bonds in the amount
of € 64.6 billion and own bonds in the amount of € 1.1 billion, which are held to keep
prices stable. Most of the money market instruments are denominated in foreign
currencies.
Of the total bond portfolio, the Group held € 36.1 billion in the trading portfolio,
€ 28.8 billion in the investment portfolio and € 2.7 billion in the liquidity reserve.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The investment portfolio is carried as a long-term investment and funded almost entirely
with matching maturities and currencies; this is predominantly the case with the liquidity
reserve.
The book value of the shares and other non-interest-bearing securities held by the
Group was around € 4.8 billion at December 31, 2002. Of that, the volume of shares in
investment funds was nearly unchanged at € 2.7 billion. Most of the investment funds
were established by Group companies and are mainly for own investment purposes.
Equity Investments in Associated, Affiliated and Non-Affiliated Companies
The carrying value of the equity investments in associated, affiliated and non-affiliated
companies totalled € 6.4 billion at December 31, 2002. The investees included banks,
financial service providers and other companies. In terms of other companies, WestLB
holds shares in well-known industrial companies as well as in small and medium-sized
enterprises.
The value of the equity investments portfolio increased by around € 0.2 billion since
January 1, 2002 because of the way it was restructured in the year under review.
Notable additions include RWE AG due to the change in the structure of the investment,
GLB GmbH & Co. OHG, into which nearly all of the Landesbanks, WestLB included,
contributed their shares of DekaBank Deutsche Girozentrale, and GOH Grundstücksverwaltungsgesellschaft
& Co. KG. The investments in West STEAG Partners GmbH
and HeidelbergCement South-East Asia GmbH were increased.
Disposals included the holdings in Österreichische Kontrollbank AG and Westfälische
Provinzial-Versicherung. Write-downs were taken on the holdings in HypoVereinsbank,
ThyssenKrupp AG and Nordex AG, as well as other listed companies, which in part
took account of the massive slump in prices on the stock markets. Due to the unusually
low stock prices at the present time, the book value of some holdings in the Bank’s
portfolio is higher than the value of those holdings on the stock markets; however, given
the going-concern value of these companies, the true value of the equity investment
portfolio is still higher than what the balance sheet reflects.
The increase in associated companies is the result of the equity values of Landesbank
Schleswig-Holstein and Landesbank Rheinland-Pfalz. The first-time inclusion of MIG
Immobiliengesellschaft mbH also contributed to the rise.
The effect of the first-time consolidation of Landesbank Schleswig-Holstein and
Landesbank Rheinland-Pfalz as associated companies was already captured in the
figures for January 1, 2002; previously, these Landesbanks were consolidated on a
pro rata basis.
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Of note among the recently acquired holdings in affiliated companies is the leveraged
buy-out of French electrical company Legrand S.A.
Customer and Bank Deposits
At € 118.8 billion, deposits from banks represent WestLB’s largest source of refinancing.
Customer deposits were down 12.9 % to € 63.8 billion. Of these liabilities to customers
and banks, € 47.4 billion stem from repo transactions.
Issuing Business
Despite unfavourable conditions, WestLB Group enjoyed a strong presence on the
international bond markets. Of particular note is the US$ 1 billion bond which it issued
and managed as part of the Debt Issuance Programme. The bond attracted the interest
of a broad range of investors and was successfully placed. WestLB also made its presence
known elsewhere around the world, with issues not only in USD, but PLN, JPY, GBP,
NOK and HKD as well. WestLB has made a name for itself as a flexible issuer that
offers tailor-made products.
BREAKDOWN OF REFINANCING AT DECEMBER 31, 2002 (%)
26%
Liabilities to customers
50%
Liabilities to banks
24%
Certificated liabilities
In the short-term segment, WestLB AG makes use of its global commercial paper
programme (CP programme), which posted good issue volume in 2002. WestLB AG’s
CP has been rated A1+ by Moody’s and P1 by Standard & Poor’s.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
With outstanding CP volume valued at approx. € 6.75 billion as of November 30, 2002,
CP Ware, an international source of market data, ranked WestLB’s global CP programme
sixth among the top 50 CP issuers in the European commercial paper (ECP) market.
The Bank issued CP in EUR, USD, GBP, CHF, JPY and CZK. Both the European and
U.S. commercial paper markets were used as venues.
Altogether, the portfolio of certificated liabilities amounted to € 58.1 billion as of
December 31, 2002.
Own Funds
The Group’s capital and reserves are as follows:
WestLB Group WestLB GZ Group
Dec. 31, 2002 Dec. 31, 2001
€ millions € millions
Subscribed capital 950.5 1,183.8
Capital reserves
including:
2,034.8 3,318.1
– special reserves pertaining to Wfa
Reserves from retained earnings
– reserves required under
– 3,016.6
WestLB’s articles and bylaws 409.3 529.5
– other reserves 973.9 1,359.9
Group reserves
Equalising items for shares
625.8 2,398.0
of other shareholders
Equity capital pursuant to the
2.5 62.1
German Commercial Code (HGB) 4,996.8 8,851.4
Fund for general bank risks 261.9 597.3
Subordinated liabilities 5,067.0 6,829.6
Profit participation capital 2,535.2 3,421.3
Other capital and reserves 7,864.1 10,848.2
Total capital and reserves 12,860.9 19,699.6
WestLB AG’s subscribed capital amounted to € 950.5 million at December 31, 2002.
The Bank’s sole shareholder is Landesbank NRW.
The largest part of WestLB’s reserves consists of additional paid-in capital from the
capital increase of August 1, 2002, which was carried out in the course of implementing
the parent-subsidiary model (i.e. the division of WestLB GZ into the public-law
Landesbank NRW and the private-law WestLB AG). Of the total € 2,000 million
contributed, € 266.7 million represents subscribed capital.
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Parts of the Bank’s reserves were transferred to Landesbank NRW and LBS in the
course of the division (€ 500 million towards capital and € 3,016.6 million towards the
special reserve for the promotion of housing construction in the case of Landesbank
NRW and € 225 million towards retained earnings in the case of LBS).
Reserves from retained earnings are broken down into reserves required under the
articles and bylaws of WestLB and other reserves. In 2002, € 610 million was released
from retained earnings to cover the net loss for the year.
Group reserves total € 625.8 million (2001: € 2,398.0 million); in addition to withdrawals
of € 1,120.4 million to cover the consolidated net loss, the at-equity consolidations of
Landesbank Schleswig-Holstein and Landesbank Rheinland-Pfalz fuelled the reduction.
The individual items and details of movement in the Group’s equity capital in fiscal year
2002 are shown in the statement of changes in shareholders' equity.
Subordinated liabilities and profit participation capital at WestLB AG dropped
€ 371 million to € 7,401.9 million in the year under review.
To strengthen WestLB AG’s capital base, the former owners of WestLB GZ resolved in
2002 to increase WestLB AG’s capital by € 1.25 billion. The capital increase was carried
out on January 2, 2003, in the form of silent contributions. Repayment of the silent
contributions will occur in five equal installments, with the amounts contributed being
converted into shares of WestLB AG. In order for the increase to take place, the shareholders
of the Bank gave the Managing Board the authority to increase the Bank’s capital by
issuing new shares in exchange for cash or in-kind contributions. All increases are
subject to Supervisory Board approval and must be completed by December 31, 2007.
The silent contributions made comply with the statutory requirements for core capital
as set forth in § 10 of the German Banking Act (KWG), as well as in the Basel Capital
Accord.
Under § 10 of the German Banking Act (KWG), as well as under Principle I, WestLB
must have adequate capital and reserves to back its operations. Specifically, the ratio
between WestLB’s capital and reserves and the sum of its risk-weighted assets plus
12.5 times the relevant amount for market risk positions (currency, commodity, trading
book and option risks) must not fall below 8%. In addition, an equity capital ratio
(liable capital vs. risk-weighted assets) of at least 8% must be maintained. WestLB AG
subgroup exceeded this equity capital ratio at all times in 2002.
The capital and reserves recognised for German banking regulatory purposes consist
of liable equity capital (core capital and supplementary capital) and Tier III capital,
which for the WestLB AG subgroup totalled € 16,252 million at December 31, 2002.
The breakdown of capital and reserves recognised as liable capital under the German
Banking Act is as follows:

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
WestLB WestLB WestLB
Subgroup Subgroup Group
Jan. 2, 2003 Dec. 31, 2002 Dec. 31, 2001
€ millions € millions € millions
Core capital 9,063 7,813 8,396
Paid-in capital 6,473 6,473 5,263
Disclosed reserves 9,439 9,439 7,819
Intragroup profit 12 12 0
Asset contributions of silent partners
Special item for general bank risks
2,781 1,531 1,023
under § 340 g HGB 397 397 556
Net loss for the year – 324 – 324 – 198
Intangible assets
Book value of the capital shares
– 54 – 54 – 71
accounted for by Group companies
Capitalised aggregation difference under
– 10,441 – 10,441 – 6,184
§ 10 a (6) Sentences 6 and 7 KWG 780 780 188
Supplementary capital
Deductions from core and
7,423 6,798 7,777
supplementary capital – 191 – 109 – 97
Liable capital 16,295 14,502 16,076
Tier III capital 2,418 1,760 1,955
Total own funds 18,713 16,262 18,031
Unused Tier III capital – 668 – 10 0
Own funds under § 2(2) and (3) Principle I 18,045 16,252 18,031
For accounting and tax purposes, the division of WestLB GZ into Landesbank NRW and
WestLB AG was backdated to January 1, 2002. However, regulatory ratios could not be
determined for the two new institutions, or for the WestLB subgroup, until month-end
August 2002. Therefore, for purposes of comparison between years, the figures are
shown with those of the former WestLB Group at December 31, 2001.
The treatment of the equity investments in Landesbank Rheinland-Pfalz and Landesbank
Schleswig-Holstein is also different. They have been included on a pro rata basis for
regulatory purposes.
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The profit participation rights and subordinated liabilities included in the WestLB
subgroup’s capital and reserves for regulatory purposes satisfy the requirements of
§ 10 (5), (5a) and (7) of the German Banking Act (KWG). There can be no early repayment
obligation on the subordinated liabilities. In the event the Bank goes bankrupt or is
liquidated, the profit participation rights and subordinated liabilities will not be repaid
until all unsubordinated claims have been satisfied. Based on maturity, the breakdown
at December 31, 2002 of supplementary capital eligible for recognition by the banking
supervisory authorities is as follows:
WESTLB SUBGROUP BREAKDOWN BY MATURITY
Maturity Date Profit Participation Capital Subordinated Liabilities
Dec. 31, 2002 Dec. 31, 2002
€ millions € millions
2003 – 419
2004 35 98
2005 138 521
2006 257 170
2007 580 386
2008 386 495
2009 750 1,461
2010 370 328
2011–2015 614 720
2016–2030 25 710
2031–2040 – 280
2041–2050 – 78
Total 3,155 5,666
Using the capital and reserves recognised for regulatory purposes as a basis, the
following Principle I ratios were determined at December 31, 2002:
RISK-WEIGHTED ASSETS AND EQUITY CAPITAL RATIO PURSUANT TO KWG
WestLB WestLB
Subgroup Group
Dec. 31, 2002 Dec. 31, 2001
€ millions € millions
Risk-weighted assets of the investment book 124,557 144,398
12.5 x the relevant amount for market risk positions 30,625 42,875
Total 155,182 187,273
Equity capital ratio 11.6 11.1
Overall ratio 10.5 9.6
Core capital ratio 5.7 5.1

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Unlike the guidelines of the Bank for International Settlements (BIS), Principle I does
not recognise a core capital ratio. The Principle I ratio is calculated for costing purposes
by subtracting the capital tied up in the trading book from core capital and dividing the
result by the risk-weighted assets of the investment book multiplied by 100.
The ratios determined in accordance with the BIS guidelines are as follows:
RISK-WEIGHTED ASSETS AND EQUITY CAPITAL RATIO PURSUANT TO BIS
WestLB WestLB
Subgroup Group
Dec. 31, 2002 Dec. 31, 2001
€ millions € millions
Risk-weighted assets of the investment book 135,135 158,057
12.5 x the relevant amount for market risk positions 23,625 33,725
Total 158,760 191,782
Overall ratio 10.1 9.3
Core capital ratio 5.8 5.0
For regulatory purposes it is only necessary to determine the BIS ratio for the entire
Group. Doing so for the WestLB subgroup, and then monitoring the result, is done
chiefly for internal purposes.
The substantial decline in the amount of capital and reserves tied up for market risk
positions can be attributed to the fact that the internal model for general risks of interest
rate movements was used for the first time as of December 31, 2002. This effect
overcompensated for the moderate expansion in business and essentially caused the
noticeable improvement in capital ratios.
Even before the consultation period for the New Basel Capital Accord (Basel II) was
over, WestLB began implementing the capital adequacy recommendations contained
therein in 2002 with a series of coordinated efforts and projects (including, in particular,
the creation of a database of credit ratings and collateral, the determination of the risk
parameters as required under Basel II, the ascertainment of operational risks, market
discipline and the updating of IT systems). By starting early, the Bank has given itself
the time it needs to archive data and to meet the new accord’s deadlines.
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Risk Report
It is a fundamental principle of WestLB AG Group’s business policy to approach risks
responsibly and with an eye toward returns. To gauge and adequately exploit the earnings
potential of a multitude of unique and innovative businesses within the context of a
risk-return approach, risks must be identified, measured adequately and continually
monitored. As a result, the risk management system and tools used at WestLB are
organised primarily on the basis of the product lines and the unique risks inherent
to each of those product lines. Taken as a whole, the individual components of risk
controlling and management form a comprehensive and effective system of risk
management that generates the information needed to make day-to-day, strategic
business decisions for the WestLB Group.
Organisational Basis of Risk Management in the WestLB Group
The majority of risks are monitored and managed in the WestLB AG Group in a uniform
manner via the relevant divisions of WestLB AG. The exceptions are the (sub-)groups of
Westdeutsche ImmobilienBank and the Boullioun Group, which perform their own risk
management. From WestLB’s perspective, any risks inherent in these businesses are
managed as equity investment risks.
Accordingly, the risks for approx. 96% of the business activities carried out in the
WestLB Group (as taken from the business volume carried on the balance sheet) are
managed from a single source and in accordance with uniform methods.
The Central Credit Management unit is responsible for monitoring counterparty default
risks in the lending business. The Risk Management Support & Control unit is responsible
for monitoring market price risks in the trading and investment portfolios as well as
counterparty risks in the trading business. The Global Financial Markets unit manages
short-term liquidity risk, while the Capital & Mismatch Management unit manages
structural liquidity risk. The Equity Investments business group handles the routine
management of participation risks, as well as risk management for Group companies that
are either not part of the Banking Group’s risk management system or do not operate
their own risk management systems. Any tasks related to developing and providing
methods for risk-return management, including the relevant guidelines for the business
units and the monitoring of how much risk the Group can bear, are performed by the
Group Strategy/Controlling unit. This unit also handles all other operational management
duties.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The appropriateness and effectiveness of the overall risk management is constantly
monitored by the Group’s internal auditing unit. As an independent supervisory entity,
the internal auditing unit reports directly to the Group Managing Board with its results,
analyses, evaluations and with any recommendations it may have.
The responsibility within the Managing Board of WestLB AG, and therefore within the
Managing Board of WestLB Group, for units and businesses that perform substantive
work in the area of risk management was concentrated in the position of Corporate
Risk Officer in 2002.
Types of Risks
The Bank distinguishes between market price risks, counterparty default risks and
liquidity risks, as well as participation risks, operational risks and other risks.
Market price risks are potential losses in the trading and investment portfolios caused
by price fluctuations on the financial markets.
The risk of financial loss arising from a borrower’s or counterparty’s inability to meet
its payment obligations is known as counterparty default risk. In trading operations,
counterparty default risk is referred to as counterparty risk. Country risk (particularly
transfer risk) is a type of counterparty default risk; it arises when a borrower will not
(or will no longer) be able to service its foreign currency debt because of a worsening
of the general economy or the political situation in the borrower’s home country.
Liquidity risk refers to potential bottlenecks in market liquidity, which could make it
difficult for the Group to meet its future payment obligations in full or at reasonable
prices, within a reasonable time.
Participation risk refers to potential fluctuations in the value of companies making up
the WestLB Group, as well as risks arising from contracts with companies in which the
Group participates.
Operational risks are defined as the threat of losses resulting from the inappropriate
behaviour of employees or from the failure of internal procedures and systems.
Operational risks also encompass external events.
Other risks include threats to the Bank’s reputation and any other general business
risks.
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Uniform System of Risk Measurement
WestLB has incorporated the various methods used to measure specific risks into a risk
management system that spans all products and business units; the measurement of
operational and participation risks is currently being adapted to fit this uniform system.
The use of uniform risk ratios makes it easier to compare the different types of risks
against each other within the context of the Bank’s overall documented exposure. The
wealth of risk information captured includes the quantitative data required for regulatory
reporting purposes and for the overall operational management of the Bank (e.g. riskweighted
assets, credit risk equivalents and economic capital, anticipated loss, value-at-risk,
etc.), but also contains qualitative information (e.g. rating structures, market analyses).
The quality of risk measurement is monitored continuously. A key element of this
quality control is to test the risk parameters that are being used (back testing).
Simulations and stress tests ensure that even unlikely, extreme market situations are
also taken into account.
Risk reporting to the decision makers in the business and management units is
up-to-the-minute.
Consistent Management
One way that the risk policy defined by the Managing Board comes to life is in the form
of a global system of risk limits for counterparty default and market price risks. This
system ensures that the sum of the risks assumed by the individual business units stays
within the Group’s total risk limit.
WestLB Group’s risk policy is documented in guidelines and working instructions.
Having these guidelines and instructions ensures that there is a system of risk-adjusted
profit control for operations that is in harmony with the Bank’s overall goals.
Monitoring and Managing Risks in the Trading Business
The Managing Board is responsible for setting the risk policy and profitability goals of
the trading business. It also defines strategies for trading, including which products are
offered to what customers on which markets. The required limits and framework for
risk management are derived by looking at the budget and considering how much risk
the Group can bear.
The individual trading units are responsible for their own risk management within the
guidelines defined by the Managing Board. They are accountable for the risks and
returns of their activities.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The Risk Management Support & Control (RMS&C) unit is responsible for independently
implementing and guaranteeing adherence to the Managing Board’s guidelines for risk
management in the trading business. To that end, RMS&C is present in all locations
where there is an active trading business. Its duties and responsibilities are described
in detail in a trading handbook. This handbook is available as a database application,
which means that all employees have access to the latest version of it.
RMS&C is also responsible for monitoring market price and counterparty risks. Limit
structures are regularly reviewed and updated. In addition, adequate methods for
quantifying risks are defined.
The RMS&C unit continues to collaborate on all activities aimed at improving the
Bank’s overall risk management system. It introduces trading-specific information into
the individual management systems and ensures that these systems adequately capture
the trading business.
RMS&C is also in charge of introducing new products into the trading business (New
Product Process, or NPP). NPP ensures that all new transactions are performed properly
and seamlessly, and also supports the Bank’s efforts to respond in a timely manner to
customers’ demands for innovative products.
By providing decision makers with regular risk analyses and detailed information
about all necessary risk and P&L numbers, the RMS&C unit actively supports the
risk management of the trading business. Individual risk committees for market and
counterparty risks regularly meet to discuss the risk exposure in the trading business.
The Managing Board meets every two weeks to discuss the risk situation.
WestLB AG satisfied the minimum requirements for conducting trading operations
at all times in the year under review.
Market Price Risks
Market risks, and the value of the WestLB Group’s trading and investment portfolios,
are computed daily. In order to track the medium and long-term development of factors
that impact market risks, analyses from the Economics Department are used. Particular
emphasis is placed on information about products that have equity risks and interest
rate risks, since these are the product categories under which most of the positions fall.
At the end of 2002, WestLB received approval to begin using its internal VaR model to
determine Principle I equity capital ratios for the trading business. The approval also
covers all of WestLB´s foreign branches. The internal model fully captures general
interest rate risks, and work is currently under way to teach the model to recognise
specific interest rate risks as well.
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The value-at-risk (VaR) approach is used to determine market price risk under normal
market conditions. VaR is used to estimate the likelihood that a given portfolio’s potential
future losses will exceed a certain amount within a specified period of time. The VaR
technique can be applied consistently to all products and markets, which makes it
possible to compare risks between different portfolios.
The VaR model employed at WestLB for interest rate and foreign exchange risks is
based on a Monte Carlo simulation technique. For internal purposes, VaR calculations
are done on the unweighted basis of the last 250 changes to all market parameters that
materially impact the portfolio, assuming a holding period of one day and a confidence
level of 95%. For external purposes, a confidence level of 99% and a holding period of
ten days are assumed.
Market risks are measured using a central data warehouse that makes it possible to
reprice the relevant trading products and identify non-linearities and diversification on
all trading levels, regardless of the front office systems used.
Regular back testing is used to monitor how meaningful the VaR numbers are. Detailed
quarterly analyses supplement the exhaustive daily tests, and the conclusions drawn
from the testing make an important contribution towards improving the model. The
results are also incorporated into the validation that takes place every six months. The
goal of the six-month validation is to ensure that the model is capable of adequately
determining risks, even if the risk parameters change.
In order to determine value at risk, it is necessary to make statistical assumptions about
the change in the risk factors used. WestLB assumes a standard logarithmic distribution
of the daily variance and uses the variance-co-variance approach when making its
calculations. The co-variants are determined on the basis of a series of equally weighted
logarithmic changes in the risk factors.
The Monte-Carlo-based market price risk calculations are also used to determine stock
risks. Doing so ensures that diversification effects are included and that non-linear risks
are adequately captured.
VaR is the most important tool for limiting market price risks that the Managing Board
has at its disposal. VaR limits have been set on all relevant levels, down to the smallest
units with risk and profit responsibility (limit units).
VaR limits are monitored daily. If the limits are exceeded, RMS&C alerts the relevant
trading unit, instructing it to take the necessary measures to return its business to within
normal VaR limits and then monitoring that the trading unit does so. The head of the
RMS&C unit is notified each time a VaR limit is exceeded. The Managing Board is
notified when the amount by which a VaR limit is exceeded is substantial.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Additional information (e.g. sensitivities, correlation risks, binary risks, etc.) is gathered
in order to portray and limit risk clusters and risks that are not captured by VaR.
Using the Bank for International Settlements’ parameter (confidence level of 99% and
holding period of ten days), the values at risk in 2002 were as follows (€ millions):
VaR Minimum VaR Maximum VaR Average VaR
per Dec. 31. 2002 in 2002 in 2002 in 2002
€ millions € millions € millions € millions
WestLB Group
thereof
77.2 72.8 121.0 93.0
– GFM1 53.2 44.2 91.6 64.2
– WestLB Panmure 14.0 8.6 19.4 12.8
– other trading units2 18.3 12.0 28.2 18.5
1 incl. Credit Derivatives
2 Düsseldorf Trading Others, Banque d’Orsay, Luxembourg Int. S.A., WSP Equities,
Strategic Stock Positions, BEAL Buenos Aires, Specialised Finance
VaR estimates the maximum loss under normal market conditions. In order to look at
movements in market parameters that are less likely than those assumed in the VaR
calculations (fat tails), scenario analyses are required. When doing fat-tail analysis,
WestLB uses parametric and historical scenarios. In addition, stress tests are performed
weekly and their results are passed on to the Managing Board at least once every
month.
By analysing and commenting on the potential losses revealed in these analyses and
tests, the RMS&C unit ensures that the trading units and/or Managing Board have what
they need in order to react to extreme market situations.
Counterparty and Country Risks in Trading Operations
Transactions with external customers are subject to default risk related to the
counterparty and/or country involved.
The controlling and management activities undertaken to counteract the risk of default
in the trading business require a wide array of tools and consolidation into one uniform
process. The individual steps are as follows:
The correct measurement and modelling of all risks forms the basis. The aim is to
develop customer-specific and type-specific risk profiles over the life of transactions by
taking into account the unique aspects of a given product. With interest rate swaps and
other long-term derivatives, the Bank uses a Monte-Carlo-based portfolio simulation
method.
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The RMS&C unit incorporates the exposures into the relevant limits every day. Thus,
the Group has a central record of all counterparty and issuer limits in trading, which
ensures uniform and up-to-the-minute risk monitoring.
The responsible decision makers determine the counterparty, issuer and country risks
within the trading business using the Group-wide credit processing mechanisms.
Limit compliance is checked daily. Once it has been determined that a limit has been
exceeded, the trading unit issues an opinion and the Managing Board members
responsible for the RMS&C unit and for the trading units are informed. In addition to
reports on short-term developments, standard reports regularly report on how close
active operations are coming to the limits set. If needed, the member of the Managing
Board in charge of the RMS&C unit is given suggestions on how to correct non-compliant
activity.
In order to reduce the counterparty risks in the derivatives business, WestLB
systematically works with collateral agreements. Specifically, it uses the standard
master agreements available on the market, which provide for close-out netting and
the provision of security. Collateral management (which generally takes the form of
daily margin calls) is handled by the Global Back Office and RMS&C units as part of
the Bank-wide management of counterparty default risks. The legal and operational
requirements for recognising this type of risk reduction are defined at WestLB by the
Netting Committee. The substantial amount of legal documentation that is required
also helps with measuring the Principle I capital ratios for counterparty risks. Internal
risk management and external reporting both make use of information that is contained
in a Bank-wide legal database.
In addition to monitoring the risks posed by individual customers, RMS&C supports the
management of counterparty default risk in the Bank’s overall portfolio by analysing
and quantifying the risks from trading operations, which are then incorporated into the
relevant modelling.
Monitoring and Managing Risks in the Lending Business
Central Credit Management (CCM) has overall responsibility for managing the Bank’s
worldwide counterparty default and country risks.
CCM defines the standards for conducting the Bank’s lending business in accordance
with the risk policy established by the Managing Board. This includes developing the
credit approval limits to be approved by the Managing Board for the various credit and
product groups, as well as creating the processes and methods used in the analysis,
management and monitoring of counterparty default risks.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
CCM has voting and co-determination rights where the credit approval and monitoring
process is concerned. CCM is also responsible for monitoring the country limits of all
non-trading products.
CCM is responsible for the overall planning and management of the loan portfolio, the
goal of which is to optimise the structure of the Bank’s credit exposure. The structure
of the loan portfolio is regularly reviewed in order to ensure its compatibility with the
risk policy defined by the Managing Board. The results are presented to the Managing
Board in quarterly reports.
In the course of optimising its credit and capital management, the Group created a
separate Portfolio Management unit within CCM in 2002, the main task of which is
active portfolio management. The Portfolio Management units makes recommendations
to the Credit Portfolio Committee (CPC), which consists of the Managing Board members
responsible for risk management, clients and special finance. Decisions are made by
the full Managing Board and then implemented by the Portfolio Management unit.
Counterparty Default Risks – Risk Provisions
The amounts reported in risk provisions/result of evaluation under the result of provisions
for credit risks encompass the P&L effects resulting from the evaluation of acute and
latent counterparty default risks:
RISK PROVISIONS/RESULT OF EVALUATION – LENDING BUSINESS
Allocation to Write-Backs Net Other Risk Risk Result
Allowances from Allowances Allowances Exp./Income
€ millions € millions € millions € millions € millions
Acute counterparty default risk – 2,157 424 – 1,733 – 24 – 1,757
Credit rating risk – 1,992 157 – 1,835 – 20 – 1,855
Country risk – 165 267 102 102
Other risk – 4 – 4
Latent counterparty default risk – 252 24 – 228 – 228
– 2,409 448 – 1,961 – 24 – 1,985
The allocations to risk provisions are also discussed in the section on the Statement of
Income.
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Counterparty Default Risks – Managing Individual Risks
The three regional lending business segments (Germany/Europe, America, Asia/Pacific)
assume primary responsibility for independently monitoring and managing counterparty
default risks. The special finance units Global Specialised Finance and Principal Finance,
where risk analysis cannot be completely separated from the business structure, are
responsible for their own risk-return management.
The two pillars of individual risk management are the credit approval processes for
individual transactions and the ongoing monitoring process. Each credit approval
takes into consideration the total commitment which an individual borrower, or, if
applicable, a group of companies has with the WestLB Banking Group. The borrower’s
creditworthiness and the risk of the transaction or item of property are analysed and
documented in a credit application file prepared by the relevant loan or special finance
department. The risk evaluation gives rise to an internal rating that plays a significant role
in the remaining credit approval process, as well as in profit and portfolio management.
Depending on the magnitude of the borrower’s overall commitment and the credit
rating awarded, joint credit approval competence is delegated to the relevant customer
and lending units or, in the case of special finance, to the special finance units and
CCM. Credit applications that fall outside of certain parameters are reviewed by CCM.
CCM gives an opinion on these applications and then passes them on to the Managing
Board for a decision.
The foundation of the ongoing monitoring process is the credit monitoring file prepared
at least once a year on each individual borrower. Like the credit application file created
in the application phase, the credit monitoring file includes a review of the borrower’s
creditworthiness, as well as a review of the borrower’s credit rating and collateral. If
the review reveals that the borrower poses a greater risk than the borrower previously
did, the borrower is included in the loan or product department’s watch list and receives
closer scrutiny and support.
Problem cases are earmarked for closer monitoring and generally transferred to CCM.
The goal is to limit the Bank’s potential losses by developing restructuring concepts in
a timely manner.
As part of regular reporting, a quarterly report is prepared for the Managing Board
which looks at current risk developments in order to portray the Group’s needs for risk
protection and recommend allowances for specific credit risks. When deciding on the
amount of specific allowances in light of the risks posed, the following steps are taken:

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
� analyse the borrower’s cash flow in order to determine its future solvency,
� value the borrower’s net assets in order to estimate the anticipated proceeds of
liquidating existing collateral and,
� if applicable, find out what prices credit default swaps or loans of the borrower
are getting on the secondary market.
In addition to the recommendations for the last quarter, a year-end summary of the
recommendations made throughout the year is prepared by the loan departments,
Central Credit Management, Group Internal Auditing and the Group Finance unit.
The Managing Board uses this report as a basis for determining allocations to the risk
provisions.
Counterparty Default Risks – Rating Systems
The loan and product units determine an internal rating for each customer. Specific rating
procedures are currently in place for these customer and product groups: corporate
clients, banks, private clients, real estate finance, project finance, structured commodity
finance, commodity trade finance and asset backed securities.
Ratings are given as part of the approval process for new loans, and as part of the
regular monitoring of existing loans, and are based on the risk analyses performed. The
risk analyses incorporate quantitative and qualitative elements that are determined on
the basis of a pre-set system.
The individual credit rating determined reflects a standardised default probability for
each customer that forms the basis of the Bank’s risk pricing and loan portfolio analysis.
WestLB has had an internal rating system in place for more than 13 years for corporate
clients that are grouped into one of its major portfolios. Other rating systems have been
added over the years. As of December 31, 2002, 66% of the Group’s credit line volume
was being rated internally.
Given the requirements that are expected to emerge from the Basel II Accord, the Bank
intends to add rating systems for its smaller client and special portfolios, as well as to
revamp and improve the systems that are already in place. It will gradually introduce
these systems in the course of 2003. By mid-year 2003, all functionalities related to the
internal rating systems will be deployed in a rating database, so that the rating data
required for compliance with Basel II will be systematically available.
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In order to systematically capture the default probabilities, the Global Watchlist will
also be improved. The Global Watchlist is a database that provides worldwide monitoring
and management of risks that require close supervision. The improvements will make it
possible to archive and chronicle the exposure at default (EAD) and the loss given
default (LGD).
Fiscal year 2002 was characterised by a global economic downswing. It also affected
how ratings were distributed within the corporate clients and banks portfolios.
RATINGS BREAKDOWN IN CORPORATE CLIENTS/COMMERCIAL REAL ESTATE FINANCE
AT DEC. 31, 2002 AND DEC. 31, 2001
1 2 3 3/4 4 4/5 5 6
� 1,539 7,132 23,298 25,373 6,768 2,146 1,527 988
� 2,627 3,157 14,969 18,649 6,079 2,477 1,617 1,597
� ext. lines at Dec. 31, 2001 Volume for Banking Group in € millions
� ext. lines at Dec. 31, 2002
As was the case in the previous year, most of the customers in WestLB Group’s corporate
clients portfolio are rated 3 or 3/4. Shifts in ratings are due to the effects of the Bank’s
division and to changes in the estimated risks posed by companies in the telecom and
energy sectors, as well as those posed by some companies based in Argentina.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
CORPORATE CLIENTS/COMMERCIAL REAL ESTATE – AVERAGE RATINGS FOR 2001
AND 2002
Europe America Asia Total
� 3.67 3.98 3.81 3.77
� 3.73 4.97 3.94 4.05
� Dec. 31, 2001
� Dec. 31, 2002
The average rating dropped noticeably in the America portfolio in 2002, chiefly because
of the crisis in South America and economic influences that forced some companies’
ratings to fall. The average rating for the entire corporate clients portfolio was 4.05,
which corresponds to a credit rating of 3/4.
Counterparty Default Risks – Portfolio Management
One way that WestLB systematically measures and manages credit risks is by using
an actuarial credit risk model based on Credit Risk+. This model makes it possible to
supplement individual analyses with an overall portfolio view and to quantify the risk
potential of a portfolio by supporting probability breakdowns for potential losses. By
calculating the risk contributions of individual commitments or parts of a portfolio,
cluster risks, industry risks and country risks can be identified. The consumption
of economic capital and anticipated losses are calculated for each borrower with
a confidence level of 99.97%.
Use of the credit risk model – in part as an element of global risk-return management –
is constantly being expanded and refined. It places WestLB in a position of more
accurately forecasting credit risk-related losses and cluster risks, and more efficiently
allocating economic capital across the business segments.
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There are separate industry committees within CCM that monitor risk changes in the
key sectors in which the Group is committed. The Managing Board and Credit Portfolio
Committee are regularly informed about specific industry concentrations and the Group’s
risk exposure in these industries, and they use this information to manage the Group’s
portfolios. Given the accumulating acute and latent risks in the telecommunications,
aviation and energy sectors in North America, the Managing Board resolved to set
industry limits for these sectors in 2002.
Counterparty Default Risks – Country Risk
WestLB defines country risk as the risk that a borrower will not (or will no longer) be
able to service its foreign currency debt because of a worsening of the general economy
or the political situation in the borrower’s home country. Based on this definition, any
credit granted by the Group that is not denominated in the borrower’s currency faces
a potential country risk and should be included in the country exposure list.
When determining the Group volumes subject to a country risk, WestLB goes well
beyond the classical transfer risk. When assigning risk to a country, the Bank not only
takes the borrower’s country of residence into account; the country risk of the borrower’s
ultimate parent company, the providers of collateral or any other guarantors is also
considered.
The data found in the country risk recording system CORESY is used to analyse the
credit volume affected by a particular country risk. Commitments are assigned to a
specific country in accordance with the CORESY report. When determining the credit
volume to be analysed, finance projects that are of special importance to the country
(co-finance package with supranational institutions, short-term trade finance for the
import of food, etc.) and those that are backed by political/moratorium guaranties are
excluded. Lines/disbursements that have not been drawn upon are also excluded, as
are trade portfolios for which the country risk was considered when the portfolio was
marked to market. When determining the amount to allocate to the provisions for
country risks, standard bad loan charge ratios are used.
WestLB’s Economics Department assigns internal ratings to all relevant countries,
which are reviewed at regular intervals. Numerical country limits are determined on
the basis of the country rating, the country’s size, as reflected in its gross domestic
product, as well as the risk-bearing potential of the WestLB Group. Depending on the
rating category, the country limits are divided on the basis of fixed ratios into limits for
short-term business and limits for long-term business. A distinction between product
groups, i.e. the lending business, trade finance and trading business, is also made.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The Country Limit Committee is in charge of the WestLB Group’s centralised country
limit management. In addition to determining the scale of the limits, the Country Limit
Committee handles questions related to the methodologies and procedures of country
risk management. The final decision on country limits rests with the Managing Board,
which works on the basis of the Country Limit Committee’s recommendations. Central
Credit Management continually monitors the usage of limits for non-trading products
and reports its findings to the Managing Board and the Risk Committee. RMS&C monitors
and reports on trading products.
The use of individual country limits is managed by the regional client business units.
Their country managers work with the individual product areas to determine how much
of a country’s overall limit is needed and used. The country managers also control the
distribution of resources among the various product areas from a risk-return point of
view.
BREAKDOWN OF GROUP COUNTRY LIMITS
excl. EMU/GB/USA
Rating Category
A Countries B1 B2 B3 B3/C1 C1 C2 C3
� 20,522 3,596 5,362 9,195 2,315 4,584 1,039 061
� 12,065 1,976 2,951 7,728 1,810 4,352 0 856 049
� 17,617 4,939 5,814 6,924 1,086 1,956 2,207 032
� 07,337 3,240 3,151 5,241 0 446 1,391 1,700 032
� 17,846 4,124 8,087 4,794 0 911 1,699 1,577 573
� 7,048 2,058 4,054 2,952 0 409 1,062 1,355 382
� Group CL Dec. 31, 2000 � Usage Dec. 31, 2001 Volume in € millions
� Usage Dec. 31, 2000 � Group CL Dec. 31, 2002
� Group CL Dec. 31, 2001 � Usage Dec. 31, 2002
95

96
The increase in the amount and usage of Group country limit category B2 can be
attributed to the improvement in the ratings of South Korea, Poland, Estonia and
Botswana. The drop in Argentina’s rating led to an increase in the exposure in
category C3.
The usage of the Group country limits in rating categories C1, C2 und C3 reflects the
commitments that the Bank and its subsidiaries have made in Argentina and Brazil, in
particular, and, to a lesser degree, in Turkey. In 2002 the Bank continued its policy of
systematically reducing its commitments in countries with poor ratings.
Monitoring and Managing Participation Risks
Generally speaking, the management of participation risks at WestLB refers to managing
all of the Group’s participations, which is a task that has been assigned to the Equity
Investments business group. The companies of the Banking Group are fully incorporated
into the risk and operational management of WestLB.
The risk management of companies that are not consolidated into the Banking Group
is also handled by the Equity Investments business group. Certain of our investments
are also followed by specialist units and monitored in terms of their risk. This approach
allows for optimal support of companies whose business activities are closely linked
with the activities of the respective product unit.
An example of this process is Boullioun Aviation Services Inc. (BAS), which is the parent
company of the Boullioun Group, an enterprise active in the aircraft leasing sector.
Boullioun has been assigned to the Global Specialised Finance business unit, which
manages Boullioun’s risks chiefly by determining credit guidelines, accepting supervisory
positions and performing decentralised risk controlling for the firm’s products and
services.
The Boullioun Group performed satisfactorily in 2002, despite the crisis in the aviation
industry. Due to its diversified portfolio of clients, the high-quality aircraft in its fleet, as
well as minimal idle rates, it managed to post positive results in the year under review.
On the basis of its proven business model, the Boullioun Group is also well positioned
to face future challenges.
The assessment of current and future risks posed by the participations that are not
captured by the Banking Group’s original management mechanisms is based first and
foremost on analysing the company data provided in the course of ongoing participations
controlling. The information collected also provides a starting point for actively supporting
the participations from a shareholder perspective and managing the participations in

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
keeping with the Bank’s equity investment strategy. The interests of WestLB’s shareholders
are represented at all major Group companies in that members of the Managing Board
hold seats on the supervisory boards of these companies. This kind of representation is
an integral part of the Group’s management.
To monitor and manage risks, as the Equity Investments business group does, in a way
that focuses on the health of the Bank’s business is particularly important in the case
of participations in companies that are exposed to self-generated risks, e.g. companies
that receive private equity. In its private equity business, the Bank uses investment
funds to provide equity capital to fast-growing companies. Since some of the funds are
still being invested in and the economic situation of growth companies was difficult in
the year under review, WestLB increased its risk provisions.
WestLB’s asset management activities, which were pooled in WestAM Holding GmbH
in 2001, continued to report start-up losses due to the difficult conditions on the financial
markets. However, with a rigorous system of cost management and further improvement
of its business model thanks to its incorporation as a limited liability company, the
company has shown that it has the necessary structures in place to respond flexibly
and sufficiently to market changes. As a result, we believe that the company is well
positioned for the future.
Liquidity Monitoring and Management
Liquidity management within the WestLB Group is carried out centrally by the
Global Financial Markets (GFM) and Capital & Mismatch Management (CMM) units in
accordance with the guidelines established by WestLB’s Asset & Liability Committee
(ALCO), a Managing Board committee whose responsibilities include the structural
liquidity mismatch position. While GFM ensures short-term liquidity, CMM is responsible
for planning and controlling structural liquidity. In other words, CMM ensures the
Bank’s compliance with banking regulatory requirements (Principle II) and takes care
of its economic liquidity.
The work that goes into determining and planning liquidity requirements is done on
the basis of a proprietary information system that was extensively revised in 2002 and
now offers the opportunity to simulate the Group’s future liquidity position by applying
a variety of scenarios. The information gathered from this system is supplemented by a
continuous exchange of information with the relevant business units of the Group, as
well as regular meetings of the persons involved in risk management. This ensures that
all necessary information is available for the timely procurement and allocation of
liquid funds.
97

98
The objective of liquidity management is to avoid a concentration of financing
requirements with very short-term maturities, to keep enough liquid assets on hand
for unexpected liquidity needs and, at the same time, to optimise the Bank’s structural
liquidity with the help of a medium and long-term-oriented funding programme.
Liquidity planning is also designed to broaden the refinancing base with banks and
non-banks by maintaining a permanent presence on the money and capital markets.
The central bank function for the savings banks in North Rhine-Westphalia and
Brandenburg is a key focus of WestLB’s treasury activities.
The Group uses customary financial instruments to procure the required liquidity. In
addition to borrower’s note loans (Schuldscheindarlehen), WestLB issues debentures.
As a rule, these issues are standardised tap issues. In addition to the existing debt
issuance programme for medium and long-term issues, the Bank has a global CP
programme for short-term issues.
Liquidity is procured primarily in the major currencies: i.e. Euro, U.S. Dollar, Japanese
Yen and Pound Sterling. To a certain extent, the funds raised are converted into the
target currency using derivatives. Responsibility for liquidity optimisation is delegated
to the respective local branches and subsidiaries. As far as possible, liquidity flows are
kept within these local offices, with liquidity deficits and surpluses being netted; to this
end there is regular contact between the regional managers.
WestLB Group holds a large portfolio of highly liquid money market and capital market
securities which are suitable for repos and central bank tenders to ensure that there is
sufficient liquidity at all times. As a result, the Group has access to substantial refinancing
facilities when it needs them.
In 2002 guidelines on the uniform treatment of legal risks were adopted (e.g. so-called
rating downgrade clauses).
For emergencies, the Bank has developed a global liquidity contingency plan that
outlines the communications channels, responsibilities, procedures and steps for
remedying liquidity bottlenecks.
At December 31, 2002, WestLB’s Principle II liquidity ratio was 1.12. The provision
of liquidity was ensured at all times in 2002.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Business Risks
Changes in the market environment and in the prevailing technological and institutional
conditions can trigger fluctuations in business volume and margins. The extent to
which such changes pose business risks depends on the Group’s ability to react to
changes in external parameters as early as possible. The business risks are reduced
if the Group is flexible enough to adapt its use of resources in the various business
units and product lines to current developments.
WestLB is currently working on a process to identify and measure business risks which
result from cost structures that cannot be adapted within one year’s time to fluctuations
in volume and margins.
Operational Risks
Operational risks in the lending business have always been part of the overall
management responsibility of an institution. In recent years, however, cases involving
major losses and the discussions among regulators spurred by Basel II have increased
general interest in the topic of operational risks.
In the WestLB Group, the individual business units are responsible for ensuring that
the risk of faulty or undesirable results is kept to a minimum. To assist them in their
efforts, the business units are supported by centralised specialist units, which, because
they cross business units and product lines, bring shared specialised expertise to bear
when it comes to reducing operational risks throughout the Bank. The internal auditing
unit plays a key role in this relationship because of its independence. Any corrections
it makes are incorporated into a structured follow-up process.
The goal of contingency planning is for business to continue as close to usual as possible
during an emergency or to be restored to normal as easily as possible in the event of
an interruption. Key components of contingency planning are the ability to assess
potential damage when operations cannot go on as normal and to have procedures in
place for restarting operations and IT applications.
99

100
An integral part of any company’s business policy is to supply itself with the right
information in the right quantities at the right time and to do so with the greatest
degree of protection against misuse. Minimising risk on this level is the responsibility of
the Chief Information Office (CIO) unit, which handles information security management
and decentralised information management (DIM).
Ensuring and increasing data quality are of paramount importance to avoiding errors in
business processes and thus reducing operational risk. Accordingly, there is a separate
department devoted to this topic at WestLB.
In order to protect the Group against substantial operational risks, it makes sense on
a cost-benefit level for some areas to use insurance as a means of risk transfer. On
the Group level, the International Insurance Program provides WestLB with extensive
insurance coverage that has been pulled together into one centralised insurance
portfolio.
To minimise legal risks, the business units are supported by the Legal Department. The
control and support that the Legal Department offers includes reviewing contracts in
light of risks, developing standard agreements, as well as keeping abreast of the latest
legal developments.
Personnel risks take on many different forms. Service offerings that cover the entire life
of employees, from hiring and continuing education to when they leave the Bank, ensure
a reduction in personnel risks.
By drawing on the various management and control functions already established for
individual aspects of the Group’s overall operational risk, WestLB has been working
to create a management system for operational risk since the beginning of 2001. The
strategy developed responds to the heterogeneity and hard-to-capture quantitative
dimensions of operational risk in two ways:
On the one hand, the necessary structural and procedural framework is determined in
close cooperation with the specialist units and areas described above.
On the other hand, in order to establish high standards of risk analysis, management
and controlling throughout the Bank, a risk event database, early warning system based
on risk indicators and a cause-based self-assessment tool have been developed.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The idea behind this management system is compatible with the qualitative requirements
for managing operational risk, at least as far as the current version of the new regulatory
rules which are expected to enter into force at the end of 2006 reveals.
Continual Improvement of the Risk Management System
The integrated management of market price, counterparty default, country, participation,
liquidity and operational risks has gained in importance. In keeping with this development,
the RMS&C unit, Central Credit Management and the regional loan departments were
placed under the direction of the Corporate Risk Officer in the Managing Board in
2002.
At the beginning of March 2003, the Managing Board resolved to increase the active
loan portfolio management performed by the Credit Portfolio Committee and CCM unit,
and to supplement the RMS&C unit’s existing management of risks in the trading
business with the responsibility for controlling the loan portfolio and operational risks.
The realisation of these measures is taking place in CCM’s newly created Portfolio
Management unit. The Portfolio Management unit’s duties now also include monitoring
and managing participation risks independently of the relevant market sector, establishing
policies for such risks and incorporating them into Group-wide portfolio management.
RMS&C is also responsible for:
� developing logical and practical methods for measuring risks across all risk
categories,
� determining the risk capital needed to support the strategic management of
operations,
� using integrated risk reporting as an instrument of efficient risk management
throughout the Bank.
101

102
Outlook
The weak economy, increasing incidence of bankruptcies and falling stock prices had
a major impact on the financial performance of banks in 2002. At the same time, the
German banking market is marked by growing consolidation and cost pressure. This is
the environment in which WestLB AG will complete its renewed focus on profitability
within the Group as it looks ahead to the elimination of institutional and guarantor
liability in mid-2005. The guiding principle of the measures which the Group successfully
pressed ahead with in 2002 remain the goals of an 18% return on shareholders’ equity,
a cost-income ratio of 65% and a core capital ratio of 6.5%.
In 2003 the WestLB Group will move ahead with the restructuring measures introduced
in the year under review. In addition to reducing its cost basis, this will include the
further development of its strategic orientation in order to improve structural profitability.
The Group will continue to concentrate on its core competencies in profitable, high-growth
businesses, including special finance, equity investments, capital market products and
the equities business. Activities which are outside the Group’s strategic focus will be
discontinued.
As a first step, WestLB divested itself of its retail operations in the year under review
by selling its private banking business and its shares in Westfälische Provinzial-
Versicherung. As of January 1, 2003, WestLB also sold WPS-Bank to the two savings
banks associations. These measures further enhanced the Bank’s image as a focused
wholesale bank.
The acquisition of the remaining shares of Westdeutsche ImmobilienBank (WIB) also
marks a step in this direction; the owners agreed on the move at the beginning of
March. One of the objectives in controlling 100% of WIB’s shares is to restructure the
WestLB Group’s entire real estate business and incorporate it into WIB, which focuses
on wholesale business.
The equities business suffered for the second year in a row from the overall weakness
of the markets. After reducing the cost basis both here and in the other capital markets
business in the year under review, further measures proved necessary because of the
persistently poor conditions. In this connection, the Bank has decided to market its core
equities business and all M&A services under the WestLB brand and to concentrate the
activities of its subsidiary Panmure U.K. on securing a competitive position in the UK
market.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The conclusion of a framework agreement with the savings banks in North Rhine-
Westphalia placed WestLB’s cooperation with the savings banks on a new footing.
Working together with the savings banks, WestLB will further develop its role as
the central institution for the savings banks. Select areas in which to strengthen
collaboration have already been identified.
On the cost front, WestLB Group reached an important milestone by reducing costs
approx. 20% in the year under review. The systematic management of costs is proving
successful. By year-end 2003, the goal of reducing the number of staff by 1,500 will be
achieved; 596 jobs were already eliminated in 2002. In addition to the project currently
under way to improve the cost-saving potential in the IT area, the Bank has set up a
project for limiting other operating expenses. Additional significant cost savings are to
be achieved by the end of the year.
Due to the weak state of the economy and the corporate scandals, WestLB Group
incurred extraordinary risks in 2002. Despite the possibility that the uncertainty plaguing
the world economy will persist, it appears likely that the worst is over in terms of risks.
The Bank has introduced further measures for limiting risk and also made substantial
headway in improving the instruments used in its active risk and portfolio management. For
example, it improved the risk profile of the Group by developing and implementing a
consistent credit risk strategy as well as creating a system of active portfolio management
to control cluster risks and capital allocation. In addition, the lending business will
focus even more on cross-selling opportunities.
After making substantial progress in the year under review in reducing its cost basis
and making risk-based adjustments in its loan and equity investment portfolios, the
Group can expect its results to improve in 2003, its second year of restructuring, if
there is a revival in the world economy. The structural measures taken as part of the
Group’s efforts to refocus will also contribute to an improvement in results. However,
if the economic situation remains unfavourable and there are critical developments in
certain industries and countries, as the crisis in Iraq could trigger, it is not unlikely that
the lending and equity investments business will be hard-hit. Therefore, it is impossible
to quantify the results for 2003 reliably. On the whole, the foundation is in place for the
Group to achieve its goals by the end of the transitional period for WestLB AG’s liability
mechanisms in 2005.
103

104
Group Balance Sheet as at December 31, 2002
ASSETS
see Notes WestLB AG WestLB GZ
No. Group Group
31. 12. 2002 31. 12. 2001
€ € € € thousands
Cash 3
a) cash on hand 11,599,728.03 (22,611)
b) balances with central banks 2,075,453,680.36 (2,055,389)
including:
with Deutsche Bundesbank
€ 392,477,739.43
c) balances in postal giro accounts 56.59 (18)
2,087,053,464.98 2,078,019
Debt instruments issued by public
institutions and bills of exchange eligible
for refinancing with central banks 3
a) treasury bills and discounted treasury
notes as well as similar debt instruments
issued by public institutions 8,607,406,077.60 (4,470,060)
including:
eligible for refinancing with Deutsche Bundesbank
€ 8,426,831,049.89
b) bills of exchange 17,315,975.52 (32,890)
including: 8,624,722,053.12 4,502,949
eligible for refinancing with Deutsche Bundesbank
€ 1,601,955.64
Claims on banks 3, 6, 18
a) payable on demand 8,588,649,545.52 (6,869,331)
b) other 68,450,501,625.02 (113,390,297)
77,039,151,170.54 120,259,628
Claims on customers 3, 7, 8, 18 88,762,390,328.36 159,799,324
including:
secured by mortgages
€ 3,904,036,122.79
loans to public authorities and entities
under public law € 8,397,903,462.77
Bonds and other interest-bearing
securities 3, 9, 15, 18, 19
a) money market instruments
aa) of public institutions 156,527,337.86 (843,286)
including:
eligible as collateral for Deutsche Bundesbank
advances € 20,457,716.90
ab) of other issuers 1,712,047,518.86 (2,836,100)
including:
eligible as collateral for Deutsche Bundesbank
advances € 141,210,066.13 1,868,574,856.72 3,679,385
b) bonds and notes
ba) of public institutions 30,819,832,257.34 (45,526,985)
including:
eligible as collateral for Deutsche Bundesbank
advances € 4,665,715,171.70
bb) of other issuers 33,737,067,316.60 (60,956,716)
including:
eligible as collateral for Deutsche Bundesbank
advances € 10,196,580,103.49 64,556,899,573.94 106,483,701
c) bonds issued by the Bank 1,122,727,493.71 (3,952,311)
principal amount € 1,069,422,115.46 67,548,201,924.37 114,115,397
To be carried forward: 244,061,518,941.37 400,755,317

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
LIABILITIES
see Notes WestLB AG WestLB GZ
No. Group Group
31. 12. 2002 31. 12. 2001
€ € € € thousands
Liabilities to banks 3, 20, 23, 30
a) payable on demand 14,912,207,696.61 (13,647,907)
b) with agreed maturity or period of notice 103,920,958,511.16 (144,774,261)
c) deposits of building and loan associations –.–– (25,237)
118,833,166,207.77 158,447,405
Liabilities to customers 3, 21, 23, 30
a) deposits of building and loan associations
and saving deposits
aa) deposits of building and
loan associations –.–– (7,105,728)
ab) with agreed period of notice
of three months 33,001,398.14 (74,397)
ac) with agreed period of notice
ac) of more than three months –.–– (6,334)
33,001,398.14
b) other liabilities
ba) payable on demand 15,732,957,178.98 (26,982,523)
bb) with agreed maturity or
period of notice 47,994,610,102.59 (71,788,027)
63,727,567,281.57
63,760,568,679.71 105,957,010
Certificated liabilities 3, 22, 30
a) bonds and notes issued by the Bank 14,403,680,789.19 (83,023,183)
b) other certificated liabilities 43,744,547,708.93 (45,747,107)
including: 58,148,228,498.12 128,770,289
money market instruments
€ 42,923,896,727.99
own acceptances and promissory notes
outstanding € 20,214,912.63
Trust liabilities 3, 23, 30 511,412,376.28 4,688,403
including:
trust loans € 136,435,360.28
Other liabilities 3, 23, 24, 30 8,575,428,164.77 8,846,249
Deferred items 3, 25, 30 549,682,649.80 1,466,949
Provisions 3, 27, 30, 47
a) for pensions and similar
obligations 599,431,046.87 (1,558,423)
b) tax reserve 431,206,724.34 (541,096)
c) other 1,327,206,454.09 (1,806,331)
2,357,844,225.30 3,905,850
Special item with partial
reserve character 3, 26 3,985,694.34 57,533
Subordinated liabilities 3, 28, 29, 30 5,066,989,179.88 6,829,637
To be carried forward: 257,807,305,675.97 418,969,326
105

106
Group Balance Sheet as at December 31, 2002
ASSETS
see Notes WestLB AG WestLB GZ
No. Group Group
31. 12. 2002 31. 12. 2001
€ € € € thousands
To be carried forward: 244,061,518,941.37 400,755,317
Shares and other non-interest-bearing
securities 3, 10, 15, 18 4,836,187,621.34 5,826,114
Equity investments in non-affiliated
companies 3, 11, 15, 18, 50 4,394,938,591.17 4,161,387
including:
banks € 520,349,194.44
financial services institutions
€ 4,317,369.87
Equity investments in associated
companies 3, 11, 15 1,854,938,299.25 346,775
Equity investments in affiliated
companies 3, 12, 15 109,748,137.15 298,770
including:
financial services institutions
€ 571,793.51
Trust assets 3, 13 511,412,376.28 4,688,403
including:
trust loans € 136,435,360.28
Equalisation claims against public
authorities including bonds and notes
issued in substitution thereof 3 417,076,434.92 565,123
Intangible assets 3, 15 61,976,027.01 90,427
including:
goodwill € 58,723,521.48
Fixed assets 3, 15 2,825,616,315.88 3,113,829
Other assets 3, 14 5,190,026,056.78 7,886,921
Deferred items 3, 17 1,337,767,630.04 4,177,173
Total assets 265,601,206,431.19 431,910,239

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
LIABILITIES
see Notes WestLB AG WestLB GZ
No. Group Group
31. 12. 2002 31. 12. 2001
€ € € € thousands
To be carried forward: 257,807,305,675.97 418,969,326
Profit participation capital 3, 29, 30 2,535,220,197.80 3,421,257
including:
due in less than two years
€ 12,070,491.67
Fund for general bank risks 3, 29, 30 261,915,305.29 597,329
Equity capital 3, 29
a) subscribed capital 950,500,000.–– (1,183,802)
b) capital reserves 2,034,802,914.87 (3,318,123)
c) reserves from retained earnings
ca) legal reserves –.–– (–)
cb) reserves required by
WestLB’s statutes 409,346,407.92 (529,500)
cc) other reserves 973,853,592.08 (1,359,900)
1,383,200,000.––
d) Group reserves 625,799,096.95 (2,398,021)
e) Equalising items for shares of
other shareholders 2,463,240.31 (62,082)
f) Group profit –.–– (70,900)
4,996,765,252.13 8,922,327
Total liabilities 265,601,206,431.19 431,910,239
Contingent liabilities
a) contingent liabilities relating to negotiated
bills of exchange 600,000.–– (–)
b) liabilities from guarantees and
indemnity agreements 17,340,492,798.86 (21,764,799)
c) liability relating to collateral given
for third-party liabilities 26,980.53 (25)
17,341,119,779.39 21,764,825
Other commitments 35
a) commitments from ungenuine
repurchase agreements –.–– (–)
b) placing and underwriting commitments 97,823.–– (–)
c) irrevocable credit commitments 78,199,939,412.58 (102,363,264)
78,200,037,235.58 102,363,264
Administered funds 35,773,517,251.12 40,791,464
107

108
Group Statement of Income
FOR THE PERIOD JANUARY 1 – DECEMBER 31, 2002
see Notes WestLB AG WestLB GZ
No. Group Group
1. 1. – 31. 12. 2002 1.1. – 31. 12. 2001
€ € € € thousands
Interest from
a) lending and money market transactions 7,260,133,730.44
b) interest-bearing securities and
(17,357,084)
book-entry securities 2,526,858,211.92 (5,584,932)
9,786,991,942.36
Interest paid 8,751,362,200.86 (20,698,484)
1,035,629,741.50 2,243,532
Current income from
a) shares and other non-interest-bearing securities 189,386,232.11 (253,591)
b) equity investments in non-affiliated companies 191,860,202.14 (206,673)
c) equity investments in affiliated companies 16,142,692.25 (58,134)
397,389,126.50 518,398
Income from equity investments in
associated companies 96,368,458.02 20,473
Income from profit pooling, profit transfer
and partial profit transfer agreements 10,565,112.79 18,199
Commission income 906,870,832.89 (1,273,070)
Commission paid 214,660,607.86 (370,089)
692.210.225,03 902,981
Net result from trading operations 177,388,264.61 222,435
Income from leasing business 43 233,207,604.05 206,494
Expenses from leasing business 43 190,034,586.30 156,478
Other operating income 729,067,300.60 844,804
Income from reversal of special item with
partial reserve character 5,835,872.14 22,195
General administrative expenses
a) personnel expenses
aa) wages and salaries 890,413,062.77 (1,302,688)
ab) compulsory social security
contributions and expenses for pensions
and other employee benefits 327,321,875.39 (429,870)
including: 1,217,734,938.16
for pensions
€ 179,611,865.27
b) other administrative expenses 873,104,214.65 (1,386,841)
2,090,839,152.81 3,119,399
Depreciation and value adjustments on
intangible and tangible fixed assets 15 182,798,673.66 208,159
Other operating expenses 525,179,932.49 285,513
Write-downs and value adjustments
on loans and certain securities as well
as allocations to loan loss provisions 42 2,010,861,665.70 1,010,206
including:
allocation to fund for general bank risks
€ –.–
To be carried forward: – 1,622,052,305.72 219,756

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
FOR THE PERIOD JANUARY 1 – DECEMBER 31, 2002
see Notes WestLB AG WestLB GZ
No. Group Group
1. 1. – 31. 12. 2002 1.1. – 31. 12. 2001
€ € € € thousands
To be carried forward: – 1,622,052,305.72 219,756
Income from revaluation of equity
investments in non-affiliated companies,
equity investments in affiliated
companies and securities treated
as fixed assets 42 94,898,948.32 235,877
Expenses from the assumption of losses 35,173,935.47 11,917
Allocations to special item with partial reserve character –.–– –
Profit or loss on ordinary activities – 1,562,327,292.87 443,716
Extraordinary income 23,312,509.17 (7,188)
Extraordinary expenses 111,404,991.79 (43,059)
Extraordinary result 44 – 88,092,482.62 – 35,872
Taxes on income and revenues 62,209,325.57 (188,995)
Other taxes not shown under
other operating expenses 16,993,231.15 (22,597)
79,202,556.72 211,592
Net loss for the year – 1,729,622,332.21 196,252
Withdrawals of net income from
reserves from retained earnings 29
a) legal reserves –.–– (–)
b) reserves required by WestLB’s
articles and bylaws –.–– (–)
c) other reserves 610,000,000.–– (–)
d) Group reserves 1,120,380,821.53 (96,678)
1,730,380,821.53 96,678
Allocation to capital of Wohnungsbauförderungsanstalt Wfa/
Investitionsbank of Landesbank Schleswig-Holstein –.–– 70,589
Allocations of net income to reserves from retained earnings
a) legal reserves –.–– (–)
b) reserves required by WestLB’s articles and bylaws –.–– (21,000)
c) other reserves –.–– (70,700)
d) Group reserves 389,841.20 (51,355)
389,841.20 143,055
Profit attributable to shareholders outside the Group 819,404.29 (8,587)
Loss apportionable to shareholders outside the Group 450,756.17 (201)
368,648.12 8,386
Group profit –.–– 70,900
109

110
Statement of Changes in
Shareholders’ Equity
Minority Group
Parent Company Shareholders Equity
Capital
€ millions Subscribed Capital Group Equity Capital Earned Cumulative Other Equity Equity
Capital Reserves Group Result Capital Capital
Reserves Group Group Reserves
from Retained Profit Group Equalising Other
Earnings Reserves Items from Neutral
Earned Foreign Trans-
Currency
Translation
actions
Balance at
January 1, 2001 1,184 3,318 1,798 95 691 91 1,650 8,827 129 8,956
Group profit 196 196 196
Dividend for 2000
Allocation from net
– 95 – 95 – 95
income for the year
Withdrawals from
92 – 143 51 0 0
Group reserves
Allocation to state housing
promotion assets of Wfa/assets
of Investitionsbank of Landesbank
97 – 97 0 0
Schleswig-Holstein
Changes in scope
– 71 – 71 – 71
of consolidation
Acquisition of
– 243 – 243 – 243
minority interests
Share of minority
0 – 75 – 75
interests in profit
Currency translation,
consolidation effects and
– 8 – 8 8 0
other changes in capital
Balance at
– 10 – 29 293 254 254
December 31, 2001
Division
– Decrease in equity
1,184 3,318 1,890 71 635 62 1,700 8,860 62 8,922
capital of WestLB AG
– Increase in equity
– 500 – 3,016 – 345 – 3,861 – 3,861
capital of WestLB AG 267 1,733 448 2,448 2,448
– Final consolidations 51 – 17 34 34
Group profit
Distribution of Group
– 1,730 – 1,730 – 1,730
profit for 2001
Withdrawals from
– 71 – 71 – 71
retained earnings
Withdrawals from
– 610 610 0 0
Group reserves
Changes in scope
1,120 – 1,120 0 0
of consolidation
Currency translation,
consolidation effects and
390 – 602 – 212 – 60 – 272
other changes in capital
Balance at
– 103 – 356 – 14 – 473 – 473
December 31, 2002 951 2,035 1,383 0 – 147 – 294 1,067 4,995 2 4,997

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Notes to the WestLB AG Group Annual
Accounts at December 31, 2002
Preparation of Group Annual Accounts
Pursuant to Article 1 § 8 of the Act on Redefining the Legal Status of Public-Law Banking
Institutions in North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse
der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen, Bank Redefining Act)
which went into effect on August 1, 2002, Westdeutsche Landesbank Girozentrale
(WestLB GZ) underwent a change in legal form to become a stock corporation. This
change took effect with its entry in the commercial registers on August 30, 2002. Since
then, the institution, now subject to private law, has been operating under the name
WestLB AG. Its registered office is in Düsseldorf and Münster.
WestLB AG is a legal entity identical to WestLB GZ. All rights and obligations that the
Bank Redefining Act assigned to the former WestLB GZ remain applicable to WestLB AG.
In accordance with Article 1 § 11 of the Bank Redefining Act, the former guarantors of
WestLB GZ remain accountable for WestLB AG’s obligations in line with the public-law
liability mechanisms of institutional and guarantor liability. This liability meets the
specifications listed in the Federal Republic of Germany’s agreement of July 18, 2001
with the European Commission (see pp. 141, 142).
The purpose of WestLB AG is to conduct banking transactions of all kinds and
complementary transactions including the acquisition of equity interests. It has the
duties of a municipal bank and a central institution for the savings banks. As a member
of the savings banks organisation, its corporate purpose also includes the creation and
provision of banking products for savings banks and public-sector clients. WestLB AG
has branch offices in Germany and in foreign countries. It is entitled to establish
additional branches.
WestLB AG’s consolidated annual accounts were prepared in accordance with the
provisions of the German Commercial Code (HGB), the Ordinance Regarding Accounting
for Banks and Financial Services Institutions (RechKredV) and the relevant provisions
of the German Stock Corporation Act (AktG). Information that may appear either in the
balance sheet or the Notes has been included in the Notes.
WestLB Group will continue to apply the same accounting and valuation principles
used by WestLB GZ Group for its annual accounts at December 31, 2001.
Due to the change in legal form, combined with the concurrent division of assets and
withdrawal of subsidiaries from the scope of consolidation, the obligation to compare
consecutive group annual accounts as stated in § 294 (2) of the German Commercial
Code (HGB) in conjunction with Statement HFA 3/1995 by the Institute of German
Certified Public Accountants (IDW) has been met by listing the prior year’s results from
the annual accounts prepared for the year ending December 31, 2001 and by including
additional explanations in the Notes.
111

112
Additional explanations that arose from the division are depicted – wherever available
and relevant – in a three-column format pursuant to the IDW’s Statement HFA 5/1988,
as amended in 1998. References in the text to prior-year figures are always the prior-year
figures from the WestLB GZ Group annual accounts prepared for the year ending
December 31, 2001.
Division of Westdeutsche Landesbank Girozentrale
Pursuant to the Act on Redefining the Legal Status of Public-Law Banking Institutions in
North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse der öffentlichrechtlichen
Kreditinstitute in Nordrhein-Westfalen, Bank Redefining Act), certain
operations and other assets of WestLB GZ defined in the Bank Redefining Act were
split off and transferred to Landesbank Nordrhein-Westfalen on August 1, 2002, with
the transfers backdated for purposes of commercial and tax law to January 1, 2002
(record date of the division).
The transfers included the assets and liabilities of the Wohnungsbauförderungsanstalt
(Wfa) and INVESTITIONS-BANK NRW, which were both legally dependent parts of
WestLB GZ prior to the division, as well as WestLB GZ’s public mortgage bond (Pfandbrief)
business, which included underwriting, insofar as the business was operated under the
provisions of the Act on Mortgage Bonds and Similar Debt Securities Issued by Public
Credit Institutions (Gesetz über Pfandbriefe und verwandte Schuldverschreibungen
öffentlich-rechtlicher Kreditanstalten). The equity capital (€ 500.0 million) and
participations, as well as consolidated subsidiaries, which fell under the operations
that were split off from WestLB GZ were also transferred to Landesbank NRW.
The division was conducted at book value; in 2002 the only impact on results came
from the deconsolidation of the subsidiaries that were transferred to Landesbank NRW.
With respect to the three businesses listed above and the subsidiaries, all legal obligations
and claims arising from them were transferred to the Landesbank NRW Group.
Further, the Bank Redefining Act also provided for splitting off the assets and liabilities
of Westdeutsche Landesbausparkasse (LBS), until then a legally dependent division of
WestLB GZ, to create a new, legally independent public-law institution. This transaction
was also backdated to January 1, 2002. Since its inception on August 1, 2002, the new
entity has been known as LBS Westdeutsche Landesbausparkasse.
The transfers of assets and liabilities to Landesbank NRW and LBS were based on the
closing balance sheets of WestLB GZ and LBS at December 31, 2001. The transfers
were transformations under § 1 of the German Transformation Act (Umwandlungsgesetz).

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The following consolidated subsidiaries of the WestLB GZ Group were transferred
to Landesbank NRW as part of the division:
� Nordwestlotto in Nordrhein-Westfalen GmbH, Münster
� Westdeutsche Lotterie GmbH & Co. OHG, Münster
� Westdeutsche Spielbanken GmbH, Münster
� Westdeutsche Spielbanken GmbH & Co. KG, Münster
� Westdeutsche Spielcasino Service GmbH, Münster
The following associated company was transferred during the division:
� Investitionsbank des Landes Brandenburg, Potsdam
Additionally, LBS Immobilien GmbH, Münster, was transferred as part of the division.
Consolidation Principles (1)
To the extent they are not prepared as such from the outset, the accounts of the
individual Group companies are, as required by law, uniformly prepared in accordance
with the accounting and valuation methods applicable to WestLB AG. Except in cases
where their impact is not insubstantial pursuant to § 304 (2) of the German Commercial
Code (HGB), claims and liabilities, expenses and income, as well as intra-group results
existing or arising between companies included in the Group accounts, are eliminated.
Where necessary, a deferred tax item is formed to cover any consolidation measures
affecting net income.
The annual accounts of foreign subsidiaries prepared in a foreign currency were
converted using the reference rates of the European Central Bank at December 30, 2002.
Valuation differences arising from exchange-rate adjustments in previous years are
netted against Group reserves.
When Group companies are consolidated for the first time, the book value method is
used, with valuation as at the Group balance sheet date. In the year under review, a net
€ 20.0 million in income was captured in full in the relevant items in the Group statement
of income. Owing to the consolidation as at the Group balance sheet date, equalising
items are formed for the annual results of companies consolidated for the first time,
and then placed under other operating expenses or income, pursuant to HFA 3/1995.
The at-equity valuation of 24 associated companies (2001: 18) continues to be performed
according to the book value method. In the case of companies classified as associated
companies for the first time, the basis for valuation was the reporting date for the Group
annual accounts. Any valuation methods used for associated companies which deviate
from those applied by WestLB are not adjusted. We are aware of no facts requiring the
113

114
elimination of intra-group results with associated companies. As the equity method
is being introduced, intra-group results still outstanding for two companies previously
subject to pro rata consolidation will be recognised as income over a period of four
years at € 3.7 million per year.
When companies that are consolidated into WestLB AG at-equity demonstrate changes
in their equity capital that have no or no clearly identifiable impact on earnings, such
changes are reflected in our capital and reserves on a pro rata basis, but are not
recognised in income.
Unless they are netted as part of capital consolidation, the earnings of the consolidated
subsidiaries are allocated to Group reserves. The Group reserves contain the results of
consolidation measures both affecting and not affecting profit. Group profit is identical
to that of WestLB AG.
Companies Included in the Group Annual Accounts (2)
At the end of fiscal year 2002, WestLB AG had a total of 242 affiliated companies, of
which 89 are included in the Group annual accounts. The following table classifies the
affiliated companies:
GROUP COMPANIES OF WESTLB AG
Previous
Year
Additions Subtractions Conversions Report Year
Affiliated companies 224 45 28 1 242
included in the Group accounts
not included in the Group accounts
pursuant to § 296 (1) No. 2 and 3
or (2) of the German Commercial
81 11 6 3 89
Code (HGB)
not included in the Group accounts
pursuant to § 295 (1) of the German
141 34 21 – 2 152
Commercial Code (HGB) 2 – 1 – 1
Jointly managed companies
Associated companies
(valued at equity pursuant to
§ 312 (1) of the German
34 1 – 22 – 2 11
Commercial Code (HGB))
Associated companies (not valued
at equity pursuant to § 311 (2) of the
18 8 4 2 24
German Commercial Code (HGB) 8 1 1 – 1 7

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
A total of 152 affiliated companies are not included in the Group accounts, because
they are only of minor importance to the WestLB Group’s net assets, financial condition
and earnings or because the shares in them are held solely for the purpose of being sold
or because the required information could only be obtained at high expense or effort.
The aggregate unconsolidated assets of the companies which are not consolidated due
to their minor importance accounted for 0.3% of total Group assets.
Moreover, one affiliated company is not included in the Group accounts because its
inclusion is prohibited pursuant to § 295 of the German Commercial Code (HGB). Its
line of business (a relief fund) differs from that of the WestLB Group.
In 2002, 16 affiliated companies were consolidated for the first time. In two cases, capital
consolidation balances totalling € 26.7 million were offset against Group reserves; in
four cases, capital consolidation balances amounting to € 8.1 million led to an increase
in Group reserves. The companies’ inclusion had no appreciable impact on the items
included in the Group balance sheet and statement of income.
Westdeutsche ImmobilienBank Group is consolidated on a pro rata basis as a jointly
managed company.
Pro rata consolidation has been discontinued for the Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein Groups (including Hamburgische Landesbank Group);
foreseeable structural changes to banks under public law and the upcoming merger of
Landesbank Kiel and Landesbank Hamburg into the new HSH Nordbank AG will result
in a pro rata reduction. At-equity valuation will now be applied. At-equity book values
for the shares in both groups were € 1,719.9 million. For the transition from pro rata
consolidation to at-equity valuation, the equity book values were set to equal the pro rata
company values.
Please see the table on page 117 for further information on the effect that the
at-equity consolidation of the Landesbanks has had on the balance sheet.
Seven associated companies (2001: eight) are not valued at-equity, since they are of
only minor importance to the Group’s net assets, financial condition and earnings.
A consolidation balance of € 0.3 million resulted from the first-time consolidation of
one associated company.
Deconsolidation of the subsidiaries and associated companies transferred to Landesbank
NRW resulted in expense of € 34.2 million and € 25.5 million respectively. Additional
deconsolidations of subsidiaries and the withdrawal of associated companies from the
scope of consolidation resulted in income of € 9.1 million and expense of € 6.1 million.
The structure of the WestLB Group is as follows:
115

116
GROUP STRUCTURE OF THE WESTLB GROUP, DÜSSELDORF/MÜNSTER
Banking Group Subsidiaries
Banco WestLB do Brasil S.A., São Paulo (100%) (LC)
Banque d’Orsay S.A., Paris (100%)
Banque Européenne pour l’Amérique Latine (BEAL) S.A.,
(LC)
Brussels (100%)
GEV Gesellschaft für Energie- und Versorgungswerte mbH,
Dortmund (100%)
GGF Asset Management S.A., Luxembourg (100%)
(LC)
ZAO Westdeutsche Landesbank Vostok, Moscow (100%) (LC)
WestLB Hungaria Bank Rt., Budapest (100%) (LC)
WestLB Ireland plc, Dublin (100%) (LC)
Westdeutsche Landesbank Polska S.A., Warsaw (100%) (LC)
WestAM Holding GmbH, Düsseldorf (100%)
WestAM (USA) General Partner Inc., Addison (100%)
(LC)
WestAM (USA) Ltd., Addison (100%) (LC)
WestLB Asia Pacific Ltd., Singapore (100%) (LC)
WestLB Asset Management (Australia) Pty. Ltd., Sydney (51%) (LC)
WestLB Asset Management (Japan) Co. Ltd., Tokyo (100%)
WestLB Asset Management Kapitalanlagegesellschaft mbH,
(LC)
Düsseldorf (90%)
WestLB Asset Management (Luxembourg) S.A.,
Luxembourg (100%)
(LC)
WestLB Asset Management (UK) Ltd., London (100%) (LC)
WestLB Asset Management (USA) LLC, Chicago (100%)
WestLB Asset Management (US) LLC,
(LC)
Houston (formerly Criterion) (100%)
WestLB Beteiligungs-Holding GmbH (100%)
(LC)
WestLB Covered Bond Bank plc, Dublin (100%) (LC)
WestLB Europa Holding AG, Düsseldorf (100%) (LC)
WestLB Europe (UK) Holdings Ltd., London (100%) (LC)
WestLB Fund Investments Ltd., London (100%) (LC)
WestLB International S.A., Luxembourg (100%) (LC)
WestLB (Italia) Finanziaria S.p.A., Milan (100%)
WestLB New York Capital Investment Ltd., Jersey (100%)
(LC)
WestLB Panmure Ltd., London (100%) (LC)
WestLB Panmure Securities Inc., Dover (100%)
WestLB Research GmbH, Düsseldorf (100%)
(LC)
WestLB Securities Pacific Ltd., Hong Kong (100%)
WestLB Systems GmbH, Düsseldorf (100%)
(LC)
WestLB UK Ltd., London (100%)
WPS WertpapierService Bank AG, Düsseldorf (100%)
Westdeutsche ImmobilienBank – Group –, Mainz (50%) –
(LC)
pro rata consolidated – (with 10 subsidiaries) (LC)
Other Group Subsidiaries
Boullioun Aircraft Holding Company Inc., Bellevue (100%)
Boullioun Aviation Services Inc., Bellevue (100%)
Jet Leasing PTY Limited, Sydney (100%)
West Merchant Bank Ltd., London (100%) (LC)
WestLB France S.A., Paris (100%) (LC)
WestKB Westdeutsche Kapitalbeteiligungsgesellschaft
mbH, Düsseldorf (100%)
WestLB Europe (UK) Fund Ltd., London (100%) (LC)
WestLB Finance (Credits) Ltd., London (100%) (LC)
WestLB Finance Curaçao N.V., Willemstad (100%) (LC)
WestLB Finance Netherlands B.V., Amsterdam (100%) (LC)
WestLB Finance UK plc, London (100%) (LC)
WestLB Property Services Ltd., London (100%)
WestLeasing Westdeutsche Leasing Holding GmbH,
Düsseldorf (100%)
Woolgate Investments CV, Amsterdam (100%)
40 additional affiliated companies included in the consolidated
accounts
PE Projektentwicklungsgesellschaft mbH & Co. Büro- und
Businesscenter Leipzig-Park KG, Düsseldorf (90%) (LC)
WestLB Panmure (Hungaria) Rt., Budapest (100%)
WestLB Securities Australia Limited, Sydney (100%)
WestLB & Panmure Growth Fund GmbH, Düsseldorf (100%) (LC)
WestRM – West Risk Markets AG, Zug (100%) (LC)
148 additional affiliated companies not included in the
consolidated accounts
31 associated companies
For information: companies outside the Group that have
Letters of Comfort:
West Pensionsfonds AG, Düsseldorf (49.90%) (LC)
West Pensionskasse AG, Düsseldorf (49.90%) (LC)
(LC) = covered by WestLB AG’s Letters of Comfort for Group subsidiaries

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Changes in the WestLB Group’s Balance Sheet Resulting from the
Division and At-Equity Consolidation (3)
The changes in the WestLB Group’s balance sheet following the division of WestLB GZ
and the at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank
Schleswig-Holstein are as follows:
WestLB GZ WestLB WestLB
Group Group Group
after the after the
Division Division and
At-Equity
Consolidation
Dec. 31, 2001 Jan. 1, 2002 Jan. 1, 2002
€ millions € millions € millions
Assets
Cash
Debt instruments issued by public
institutions and bills of exchange eligible
2,078.0 2,071.4 1,945.3
for refinancing with central banks 4,502.9 4,502.9 4,500.7
Claims on banks 120,259.6 88,921.0 68,314.7
Claims on customers 159,799.3 127,671.7 93,439.8
Bonds and other interest-bearing securities 114,115.4 95,811.8 72,307.0
Shares and other non-interest bearing securities 5,826.1 5,589.9 4,655.0
Equity investments in non-affiliated companies 4,161.4 4,125.0 3,996.4
Equity investments in associated companies 346.8 268.7 1,937.3
Equity investments in affiliated companies 298.8 202.3 152.3
Trust assets
Equalisation claims against public authorities
including bonds and notes issued in
4,688.4 1,894.7 462.9
substitution thereof 565.1 565.1 562.7
Intangible assets 90.4 88.8 77.9
Fixed assets 3,113.8 3,033.8 2,690.7
Other assets 7,886.9 8,018.4 7,551.6
Deferred items
Liabilities (excluding equity capital)
4,177.2 1,575.7 1,454.7
Liabilities to banks 158,447.4 139,492.3 108,311.0
Liabilities to customers 105,957.0 88,723.5 73,244.2
Certificated liabilities 128,770.3 83,266.7 54,422.8
Trust liabilities 4,688.4 1,894.7 462.9
Other liabilities 8,846.2 9,276.9 8,881.5
Deferred items 1,466.9 1,199.9 1,118.0
Provisions 3,905.9 2,869.0 2,501.8
Special item with partial reserve character 57.5 48.4 31.2
Subordinated liabilities 6,829.6 6,580.1 5,436.1
Profit participation capital 3,421.3 3,171.2 2,536.2
Fund for general bank risks 597.3 376.3 262.9
117

118
For information about changes in equity capital resulting from the division and at-equity
consolidation, please refer to the statement of changes in shareholders’ equity.
Accounting and Valuation Principles (4)
WestLB AG’s accounting principles, valuation principles and reporting procedures are
applicable to the entire Group. In accordance with the legal requirements, the financial
accounts of the individual companies (affiliated companies and jointly managed
companies) included in the Group annual accounts are prepared in accordance with
WestLB’s standard accounting and valuation methods.
Assets, liabilities and open positions are valued in accordance with §§ 252 et seq. and
§§ 340 et seq. of the German Commercial Code (HGB).
Claims are reported at their outstanding principal balances less any unamortised discounts.
Liabilities are carried at their repayment amounts, with any related discounts reported
under deferred items. Premiums on claims and liabilities are reported under deferred
items as an asset or liability respectively. The proportionate amount of interest on a
claim or liability at year-end is included with the claim or liability to which it applies.
Deferred items resulting from own bonds issued and the lending business are valued
according to the proportionate interest method.
Bills of exchange, as well as treasury bills and non-interest-bearing treasury bonds,
are discounted and shown with the effective discount rate. Non-interest-bearing loans
to employees are reported at their outstanding principal balance in accordance with tax
regulations. Zero-coupon bonds are carried as liabilities at their issue price plus interest
accrued as of the balance sheet date.
Discernible risks in the lending business were adequately covered by individual value
adjustments and provisions. A global provision was formed in accordance with tax
valuation methods for latent risks from claims and contingent liabilities.
Securities held in the liquidity reserve are valued strictly at the lower of cost or market
value.
Securities held in the investment portfolio (financial assets) are valued at cost. Any
difference between the cost and the repayment amount is recognised on a pro rata basis
in income. To the extent that securities held in the investment portfolio are carried at
values higher than their current market value, these securities are shown separately
in the Notes as valued as fixed assets. This information is subject to change over time
because of portfolio changes, as well as movements in interest rates and/or market
value.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Shares, bonds, derivatives and other trading instruments held by the WestLB Group for
proprietary trading purposes are reported at their individual market values as of the
balance sheet date.
They are carried either at market value or their fair value as at December 30, 2002 (last
trading day for liquid markets); pro rata interest, non-recurring payments, and option
premiums are taken into account. The individual results of valuation are combined into
Group-wide macro portfolios. Euro country currencies are combined into one item. The
portfolios are broken down into risk categories (interest rates, shares and other price
risks) and, within these risk categories, into currencies, classes of shares and other
basic instruments. Positive and negative valuation results are netted within the macro
portfolios; if there are any positive valuation results, i.e. unrealised gains, remaining,
these unrealised gains are netted against realised losses. Any unrealised gains remaining
after that are not recognised as income; any remaining unrealised losses are written
down and provisions are established. The current results from the trading portfolio
(interest income, dividends), as well as refinancing costs, were reported as part of the
interest result in the income statement. To the extent they result from trading transactions,
price gains and losses, as well as payments obtained and received under forward
contracts and other derivative instruments, as well as options, are included in the net
income from trading operations. The dividend income from certain equity trading
portfolios is also included in the net income from trading operations.
Equity investments in affiliated companies and non-affiliated companies are carried at
cost; where a loss of value is expected to be permanent, they are written down to the
lower fair value.
Tangible assets with a limited useful life are depreciated in accordance with the
applicable tax regulations, with the exception of aircraft listed under leased assets,
which are depreciated over a 20-year period. Low-value assets are written off in full
in their year of purchase.
Adequate provisions have been made for contingent liabilities and pending losses; a
provision for anniversary expenses is being established in the amount permitted under
tax law. The provision for pensions was established on the basis of actuarial principles
in accordance with § 6 (a) of the German Income Tax Act (EStG).
The special item with partial reserve character formed in fiscal year 1999 in accordance
with § 273 of the German Commercial Code (HGB) to comply with the revaluation
requirement stipulated in the 1999/2000/2002 Tax Relief Act was released in line with
legal provisions.
There is a fund for general bank risks pursuant to § 340 (g) and reserves pursuant to
§ 340 (f) of the German Commercial Code (HGB).
119

120
Foreign currency amounts have been translated in accordance with § 340 (h) of the
German Commercial Code (HGB) and BFA 3/1995. Assets and liabilities denominated in
foreign currencies, as well as open spot deals, are translated using the reference rates
of the European Central Bank on December 30, 2002. Open forward contracts (forward
exchange transactions, foreign currency options and foreign currency futures) are
carried at the mean forward rate or option premium effective on that day (last trading
day for the liquid market). Swap premiums on hedged balance sheet items are deferred
and amortised over time. The amortisation amounts are included in the interest result.
Each of the items on WestLB Group’s balance sheet, as well as each open position,
which is denominated in a foreign currency has been covered by an item that is also
denominated in that currency within the meaning of § 340 (h) (2) Sentence 2 of the
German Commercial Code (HGB). Therefore, in accordance with § 340 (h) (2) Sentences 1
and 2 of the German Commercial Code (HGB), all expenses and income generated from
the translation of foreign currency are captured in the income statement. There is no
income that has to be reported separately since the foreign exchange positions open
as of the balance sheet date were short-term. The negative result from the valuation
of individual open positions has been netted and reported under other liabilities.
Forward Transactions/Derivatives (5)
As part of their business operations the companies of the WestLB Group enter into
forward contracts and derivatives whose value is based on interest rates, foreign exchange
rates and other forward contracts or derivatives. The specific types of forward contracts
and derivatives that the WestLB Group enters into are as follows:
� Forward transactions/derivatives based on interest rates
Interest-rate swaps, interest-rate futures, forward rate agreements (FRAs), interestrate
options (bought and written), issued interest-rate warrants, interest-rate caps,
interest-rate floors, interest-rate collars and swaptions
� Forward transactions/derivatives based on foreign exchange rates
Forward exchange transactions, currency options (bought and written), forward
exchange contracts, issued currency warrants, currency swaps and interest-currency
swaps
� Forward transactions/derivatives based on share and other price risks
Stock forwards, stock options (bought and written), index forwards, index options
(bought and written), issued stock warrants and issued index warrants, precious
metal/commodity forwards, swaps, futures and options
� Credit derivatives (bought and written)
Credit default swaps, total return swaps and credit linked notes

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
DERIVATIVES – GROUP VOLUMES
€ millions Nominal Values Credit Risk Equivalents Replacement Costs
WestLB WestLB WestLB GZ WestLB WestLB WestLB GZ WestLB WestLB WestLB GZ
Group Group** Group Group Group** Group Group Group** Group
Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001
Interest-rate risks
Interest-rate swaps 1,151,600 998,134 1,074,023 10,857 6,403 6,778 30,973 17,578 18,397
FRAs
Interest-rate options,
swaptions
198,165 109,828 118,810 27 16 21 124 73 85
– bought 35,884 42,906 43,543 438 340 349 1,522 1,028 1,040
– written 39,306 39,933 40,962 – – – – – –
Stock market contracts 355,679 304,995 306,122 – – – – – –
Caps, floors
Other interest-rate
118,970 121,224 122,702 361 319 323 1,107 975 986
forward transactions
Total interest rate
42,822 88,300 90,131 59 944 945 101 1,798 1,799
risks 1,942,426 1,705,320 1,796,293 11,742 8,022 8,416 33,827 21,452 22,307
Currency risks
Forward exchange
transactions
Interest-currency
115,237 172,092 189,983 1,138 1,437 1,531 3,251 3,553 3,775
swaps/currency swaps
Currency options
114,899 107,243 111,385 2,700 3,091 3,208 3,066 3,449 3,722
– bought 10,873 20,922 22,999 132 187 196 349 467 480
– written 11,137 19,314 21,535 – – – – – –
Stock market contracts 1,260 1,640 1,640 – – – – – –
Other currency forward
transactions 377 2,031 2,031 3 75 75 1 64 64
Total currency risks
Share and other
price risks
Stock forward
253,783 323,242 349,573 3,973 4,790 5,010 6,667 7,533 8,041
transactions
Stock options
10 – – – – – – – –
– bought 2,758 1,246 1,261 175 61 62 534 94 95
– written 2,565 1,127 1,134 – – – – – –
Stock market contracts
Other forward
6,809 3,918 3,919 – – – – – –
transactions
Total share and other
3,745 2,986 3,671 129 134 154 87 139 171
price risks
Credit derivatives
15,887 9,277 9,985 304 195 216 621 233 266
– bought 20,420 11,178 11,178 341 54 54 395 55 55
– written
Total credit
25,741 17,915 17,915 – – – – – –
derivative risks 46,161 29,093 29,093 341 54 54 395 55 55
Total derivatives 2,258,257 2,066,932 2,184,944 16,360 13,061 13,696 41,510 29,273 30,669
Netting effects – – – 8,806 5,883 5,876 – – –
Total derivatives
after netting 2,258,257 2,066,932 2,184,944 7,554 7,178 7,820 41,510 29,273 30,669
* Excluding Banque d’Orsay S.A.
** After division and at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein
121

122
The total volume of WestLB Group’s forward transactions and derivatives business
was € 2,258.3 billion (2001: € 2,184.9 billion) as of the balance sheet date. The emphasis
continues to be on interest-rate risks, whose share of the total volume increased to
approx. 86.0% (2001: 82.2%).
Volume increased due to the originally internal (after the division of WestLB AG external)
derivatives with Landesbank NRW (primarily interest-rate swaps with a nominal value
of € 9.8 billion); however, it decreased due to the omission of the derivatives business
of the Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein Groups. Since
these groups are no longer pro rata consolidated, but instead valued at-equity, their
derivatives business is no longer included in that of the WestLB AG Group.
The credit risk equivalents and replacement costs are calculated on the basis of the
market valuation method in accordance with German banking regulatory requirements.
The market value is calculated only for those contracts for which the replacement
transaction necessary to regain the previous position in the event of a counterparty
default would result in additional expenditure or lower income; profits and losses
generated by replacement transactions are not netted. In line with the above-mentioned
banking regulatory requirements, the counterparty weighting, add-on for derivatives
and close-out netting effects are taken into account when calculating the credit risk
equivalents.
WestLB Group’s credit risk equivalents pursuant to § 10 and § 10 a of the German
Banking Act (KWG) represent 11.8% (2001: 8.4%) of its total counterparty default risks
(weighted risk assets and relevant amount for the counterparty risk of the trading book).
Close-out netting is used to calculate the credit risk equivalents for banking regulatory
purposes. As a result, the average credit risk equivalents declined by approx. 53.8%
(2001: 42.9%).
In addition to the credit derivatives from the trading book listed in the table, there
were also credit derivatives in the investment book. The volume of credit derivatives
in the investment book where WestLB Group is the guarantee (buyer) amounted to
€ 1,629.0 million (2001: € 2,747.0 million) at December 31, 2002. Those where WestLB
Group is the guarantor (seller) amounted to € 2,012.0 million (2001: € 4,642.0 million)
and have been included in contingent liabilities.
In fiscal year 2002, the average annual value, in nominal terms, of WestLB Group’s
derivatives and other forward transactions was € 2,329.4 billion (2001: € 1,966.2 billion).
No adjustments were made to the average volumes to reflect division-related effects.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
DERIVATIVES – AVERAGE GROUP VOLUMES
Jan. 1 – Dec. 31, 2002
€ millions
Nominal Values Credit Risk Equivalents Replacement Costs
WestLB WestLB GZ WestLB WestLB GZ WestLB WestLB GZ
Group Group Group Group Group Group
2002 2001 2002 2001 2002* 2001*
Interest-rate risks 1,965,943 1,582,101 9,360 7,197 26,302 19,248
Currency risks 306,624 348,690 4,372 5,159 7,128 8,842
Share and other price risks 16,360 10,754 330 259 607 337
Risks from credit derivatives 40,504 24,621 326 279 401 47
Total derivatives 2,329,431 1,966,166 14,388 12,894 34,438 28,474
* Excluding Banque d’Orsay S.A.
WestLB Group enters into derivative transactions with top-rated counterparties, mainly
domestic and foreign OECD banks.
DERIVATIVES – CLASSIFICATION OF COUNTERPARTIES
€ millions Nominal Values Credit Risk Equivalents Replacement Costs
WestLB WestLB WestLB GZ WestLB WestLB WestLB GZ WestLB WestLB WestLB GZ
Group Group** Group Group Group** Group Group Group** Group
Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001 Dec 31, 2002 Jan. 1, 2002 Dec. 31, 2001
OECD banks 1,472,680 1,329,484 1,435,887 9,570 6,024 6,498 32,534 20,043 21,223
Non-OECD banks
Customers (incl. stock
4,356 6,480 6,617 74 76 77 106 104 107
market contracts) 779,823 729,489 740,169 6,692 6,934 7,092 8,769 9,025 9,229
Public-sector entities 1,398 1,479 2,271 24 27 29 101 102 110
Total 2,258,257 2,066,932 2,184,944 16,360 13,061 13,696 41,510 29,274 30,669
* Excluding Banque d’Orsay S.A.
** After division and at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein
Almost all of WestLB Group’s derivatives are trading transactions; customer transactions
are entered into by the trading units. Contracts for hedging the Bank’s own portfolios
are reflected in the trading portfolio by way of internal contracts. Most of the currency
and stock contracts are short-term. The interest-rate contracts are spread across the
entire spectrum of maturities, with some 21.0% (2001: 22.0%) having a residual
maturity of more than five years.
123

124
DERIVATIVES – CLASSIFICATION BY MATURITY
WESTLB GROUP DEC. 31, 2002
Nominal Values Interest-Rate Currency Risks Share and Risks from
€ millions
Residual maturity
Risks Other Price Risks Credit Derivatives
– up to 3 months 629,851 94,341 7,335 8
– up to 1 year 312,286 54,044 5,796 0
– 1 to 5 years 588,504 72,650 2,578 1,715
more than 5 years 411,785 32,748 178 44,438
Total 1,942,426 253,783 15,887 46,161
DERIVATIVES – CLASSIFICATION BY MATURITY
WESTLB GROUP* JAN. 1, 2002
Nominal Values Interest-Rate Currency Risks Share and Risks from
€ millions
Residual maturity
Risks Other Price Risks Credit Derivatives
– up to 3 months 448,103 131,163 4,684 0
– up to 1 year 352,234 87,691 2,541 27
– 1 to 5 years 526,588 69,440 2,052 7,628
more than 5 years 378,397 34,946 0 21,438
Total 1,705,322 323,240 9,277 29,093
* After division and at-equity consolidation of Landesbank Rheinland-Pfalz and Landesbank Schleswig-Holstein
DERIVATIVES – CLASSIFICATION BY MATURITY
WESTLB GZ GROUP DEC. 31, 2002
Nominal Values Interest-Rate Currency Risks Share and Risks from
€ millions
Residual maturity
Risks Other Price Risks Credit Derivatives
– up to 3 months 473,294 146,580 4,793 0
– up to 1 year 372,830 95,189 2,592 27
– 1 to 5 years 552,137 71,667 2,490 7,628
more than 5 years 398,032 36,137 110 21,438
Total 1,796,293 349,573 9,985 29,093

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Claims on Banks (6)
WestLB Group WestLB Group
after Division
WestLB GZ Group
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Claims on Claims on Claims on Claims on Claims on Claims on
Affiliated Banks Other Banks Affiliated Banks Other Banks Affiliated Banks Other Banks
Payable on demand
Breakdown by
residual maturity
731.3 7,857.3 459.3 6,586.4 472.6 6,396.8
– up to 3 months
– between 3 months
1,014.2 42,183.7 853.3 46,688.6 1,519.9 44,575.1
and 1 year
– between 1 and
289.4 14,273.7 393.8 11,085.0 1,475.3 12,735.0
5 years 250.8 7,505.8 300.0 14,201.1 8,433.5 21,505.7
– more than 5 years 432.8 2,500.2 555.5 7,798.1 11,322.8 11,822.9
Total 2,718.5 74,320.7 2,561.9 86,359.2 23,224.1 97,035.5
Book value
including:
77,039.2 88,921.1 120,259.6
– LBS loans – – – 0.2 0.8 0.2
Claims on other banks include claims on affiliated companies in the amount of
€ 11,052.8 million and on banks in which equity investments are held in the amount
of € 455.9 million.
Claims from leasing transactions amount to € 443.8 million (2001: € 485.0 million).
125

126
Claims on Customers (7)
Breakdown by residual maturity
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
– up to 3 months 33,893.3 46,246.5 47,493.2
– between 3 months and 1 year 15,231.0 20,606.9 22,955.1
– between 1 and 5 years 21,612.9 29,543.3 39,656.2
– more than 5 years 18,025.2 31,275.0 49,694.8
Book value
including:
88,762.4 127,671.7 159,799.3
– claims with undetermined maturity 2,079.5 N/A 3,025.0
– non-consolidated affiliated companies
– companies in which equity
202.0 N/A 325.9
investments are held 3,744.2 N/A 1,028.0
– from leasing transactions 1,496.1 N/A 3,561.5
– loans of building and loan associations
– loans of the
0.0 1,270.8 6,990.2
Wohnungsbauförderungsanstalten 0.0 1,565.3 5,439.6
Claims Secured by Mortgages (8)
WestLB WestLB WestLB GZ
Group Group
after Division
Group
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Breakdown of claims on customers
by residual maturity
– up to 3 months 221.1 721.0 831.2
– between 3 months and 1 year 152.8 511.9 751.8
– between 1 and 5 years 738.5 2,622.2 3,751.0
– more than 5 years 2,791.6 7,406.1 9,701.4
Book value
including:
3,904.0 11,261.2 15,035.4
– loans of building and loan associations 0.0 1,073.3 2,894.2

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Bonds and Other Interest-Bearing Securities (9)
Bonds and other interest-bearing securities
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Book value 67,548.2 95,811.8 114,115.4
including:
amounts that will become due by
December 31 of the following fiscal year 19,487.0 18,694.8 21,003.1
Breakdown by product
– money market instruments
– bonds and notes of public-sector
1,868.6 3,679.4 3,679.4
issuers 30,819.8 38,264.3 45,527.0
– bonds and notes of other issuers 33,737.1 50,430.3 60,956.7
– notes issued by the Group 1,122.7 3,437.9 3,952.3
Breakdown by stock exchange listing
– listed on a stock exchange 54,843.5 79,676.9 97,869.4
– not listed on a stock exchange 12,704.7 16,134.9 16,246.0
Breakdown by portfolio
– trading portfolio 36,097.9 36,258.8 36,258.7
– liquidity reserve 2,678.7 14,418.5 15,722.4
– investment portfolio 28,771.6 45,134.5 62,134.3
Breakdown by Group affiliation
– securities of companies in which
equity investments are held 550.2 455.4 2,377.1
Bonds and other interest-bearing securities include claims on affiliated companies in
the amount of € 841.3 million.
The € 28.8 billion (2001: € 62.1 billion) in bonds held in the investment portfolio is part
of fixed assets. At year-end, € 6.9 billion (2001: € 18.2 billion) of the WestLB Group’s
financial assets had been valued at the modified lower of cost or market value. Of that,
€ 2.2 billion (2001: € 4.7 billion) consisted of debt obligations acquired in connection
with interest-rate swaps (asset swaps), the commercial value of which equals the
purchase price entered on the books.
127

128
Shares and Other Non-Interest Bearing Securities (10)
The item includes shares in special funds totalling € 2,688.2 million (2001: € 3,536.9
million). The funds themselves consist mainly of listed securities and are included in the
investment portfolio. The € 2.9 billion (2001: € 2.8 billion) in the investment portfolio
is part of fixed assets. At December 31, 2002, € 181.3 million of the WestLB Group’s
financial assets had been valued at the modified lower of cost or market value.
WestLB WestLB WestLB GZ
Group Group
after Division
Group
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Shares and other non-interest
bearing securities
Book value 4,836.2 5,589.9 5,826.1
Breakdown by marketability
– marketable securities 2,133.3 2,289.2 2,289.2
– non-marketable securities 2,702.9 3,300.7 3,536.9
Breakdown by stock exchange listing
– listed on a stock exchange 1,898.5 1,749.0 1,749.0
– not listed on a stock exchange 2,937.7 3,840.9 4,077.1
Breakdown by portfolio
– trading portfolio 1,068.3 963.0 963.0
– liquidity reserve 818.7 1,842.7 2,043.4
– investment portfolio 2,949.2 2,784.2 2,819.7

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Equity Investments in Non-Affiliated Companies and Associated
Companies (11)
WestLB WestLB WestLB GZ
Group Group
after Division
Group
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Equity investments in non-affiliated
companies and associated companies
Book value
including:
6,249.8 4,393.7 4,508.2
– banks
Breakdown by marketability/
stock exchange listing
2,257.0 1,049.5 1,131.1
– marketable securities
thereof
4,394.9 2,848.5 2,848.5
– listed on a stock exchange 2,644.7 2,763.4 2,763.4
– not listed on a stock exchange 1,750.2 85.1 85.1
The equity investments in non-affiliated companies held in accordance with § 285 No. 11
and § 313 (2) of the German Commercial Code (HGB) are itemised in a separate list that
has been deposited with the Local Court (Amtsgericht) in Düsseldorf. The exemptions
from disclosure provided under § 286 (3) No. 2 and § 313 (3) of the German Commercial
Code (HGB) were applied in four cases.
Equity Investments in Affiliated Companies (12)
Equity investments in affiliated companies
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Book value
including:
109.7 202.3 298.8
– in banks 0.0 0.0 32.0
– in financial services institutions 0.6 0.5 0.5
– in other companies
Breakdown by marketability/
stock exchange listing
109.1 201.8 266.3
– marketable securities
thereof
16.1 17.4 49.3
– not listed on a stock exchange 16.1 17.4 49.3
129

130
Trust Assets (13)
Other Assets (14)
The total figure of € 5,190.0 million (2001: € 7,886.9 million) chiefly consists of:
� € 1,506.2 million (2001: € 1,064.5 million)
in offsetting entries from the valuation of the trading portfolio (not including
currency transactions)
� –.– (2001: € 2,651.5 million)
in offsetting entries from currency valuation
� € 1,787.7 million (2001: € 1,681.6 million)
in premiums for options
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Claims on banks 0.3 5.5 177.1
Claims on customers 136.1 1,470.0 4,092.1
Bonds and notes 0.0 0.0 0.0
Participations in RWI-Fonds 375.0 419.2 419.2
Equity investments 0.0 0.0 0.0
Other 0.0 0.0 0.0
Book value 511.4 1,894.7 4,688.4
� € 798.3 million (2001: € 654.5 million)
in claims arising from tax refunds, the refunds themselves stemming almost
exclusively from corporate income tax and investment income tax withheld on
investment income and dividends

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Fixed Assets (15)
€ millions WestLB Group WestLB GZ Group WestLB
Group
Acquisition Additions Retire-Total Net Book Net Book Retirements Depreciation
Cost/Cost of ments Depre-Value Value Due to the in the
Production ciation Division Financial Year
Jan. 1, 2002 Dec. 31, 2002 Dec. 31, 2001
Bonds/shares and interestbearing
securities forming
part of fixed assets
Equity investments in
47,055.4 3,538.6 18,608.0 265.2 31,720.8 63,834.1 17,031.5 163.9
affiliated companies
Equity investments in
non-affiliated companies,
385.7 311.9 200.1 387.8 109.7 298.8 96.5 10.2
associated companies 4,544.8 3,562.9 970.1 887.8 6,249.8 4,508.2 114.5 735.1
Intangible assets 3.0 9.2 1.9 7.0 3.3 2.3 1.6 3.6
Goodwill 133.8 14.9 66.3 23.7 58.7 88.0 0.0 2.4
Land and buildings 1,135.2 14.7 790.4 97.9 261.6 755.3 17.0 25.1
Office equipment 1,194.4 232.6 373.1 712.7 341.2 394.7 62.9 143.1
Leasing assets 2,278.5 837.0 502.6 403.1 2,209.8 1,944.7 0.0 152.8
Other fixed assets 29.0 0.6 9.4 7.1 13.1 19.2 0.1 3.9
With regard to securities, the changes in the fiscal year are primarily due to changes
in the scope of consolidation involving the shares in Landesbank Rheinland-Pfalz and
Landesbank Schleswig-Holstein, which changed from pro rata consolidation to at-equity
consolidation, and the resulting categorisation of the Landesbanks as associated
companies. Further, besides additions and retirements there were changes resulting
from the dissolution, on a pro rata basis, of premiums and discounts.
Apart from the categorisation of the Landesbanks as associated companies, the additions
and retirements in equity investments in non-affiliated and associated companies were
due to restructuring of the equity investment portfolio.
Retirements of land and buildings in the amount of € 355.0 million were also a result
of the at-equity consolidation of the Landesbank shares; further, property with a market
value of € 140.1 million was transferred to a real estate company with no profit or
income tax consequences. Real property with a book value of € 149.1 million (2001:
€ 462.8 million) is utilised for the WestLB Group’s own business activities.
131

132
Additions to leasing assets pertain primarily to the increase in the Boullioun Group’s
aircraft fleet; retirements in the amount of € 315.0 million reflect changes in value
caused by price changes on the reporting date.
Own Shares (16)
WestLB Group did not hold any of its own shares at December 31, 2002.
Deferred Items (17)
Deferred items include the following:
Subordinated Assets (18)
The following items include subordinated assets:
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Premiums on claims 18.4 29.9 31.5
Discounts from underwriting business 115.9 131.7 472.4
Discounts from liabilities 647.2 564.9 777.9
Other 556.3 849.2 2,895.4
Book value 1,337.8 1,575.7 4,177.2
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Claims on banks 235.6 353.5 353.5
Claims on customers
Bonds and other interest-bearing
263.8 88.7 87.8
securities
Shares and other non-interest-bearing
0.0 237.4 237.4
securities
Equity investments in non-affiliated
0.0 12.1 12.1
companies 0.0 9.6 9.6
Total 499.4 701.3 700.4

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Pledged Assets (19)
Of the assets shown, WestLB Group pledged € 50,478.2 million (2001: € 47,438.9 million)
under repurchase agreements.
Liabilities to Banks (20)
WestLB Group WestLB Group
after Division
WestLB GZ Group
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Liabilities to Liabilities to Liabilities to Liabilities to Liabilities to Liabilities to
Affiliated Banks Other Banks Affiliated Banks Other Banks Affiliated Banks Other Banks
Payable on demand
Breakdown by
residual maturity:
4,000.6 10,911.6 4,386.0 10,500.3 4,388.5 9,259.4
– up to 3 months
– between 3 months
5,854.8 70,339.5 4,324.6 75,578.5 4,324.7 75,896.3
and 1 year
– between 1 and
438.3 17,152.0 98.9 26,779.4 98.9 28,113.5
5 years 261.9 6,326.1 219.3 9,537.9 222.2 15,603.0
– more than 5 years
Deposits of building
164.3 3,384.1 257.8 7,801.9 262.7 20,252.9
and loan associations 0.0 0.0 0.0 7.7 17.6 7.7
Total 10,719.9 108,113.3 9,286.6 130,205.7 9,314.6 149,132.8
Book value 118,833.2 139,492.3 158,447.4
Liabilities to banks include liabilities to affiliated companies in the amount of
€ 5,009.9 million and liabilities to companies in which equity investments are held
in the amount of € 970.9 million.
133

134
Liabilities to Customers (21)
WestLB WestLB WestLB GZ
Group Group
after Division
Group
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Savings deposits and deposits of
building and loan associations
including:
savings deposits with agreed
periods of notice of
33.0 1,029.9 7,186.5
– up to 3 months 0.0 1.0 1.0
– between 3 months and 1 year 0.0 3.0 3.0
– between 1 and 5 years 0.0 2.0 2.0
– more than 5 years 0.0 0.3 0.3
Deposits of building and loan associations 0.0 949.2 7,105.7
Liabilities to customers
including: 63,727.6 87,693.6 98,770.5
payable on demand 15,733.0 26,803.3 26,982.5
with residual maturities of
– up to 3 months 30,383.3 34,845.5 35,322.7
– between 3 months and 1 year 7,143.5 6,090.8 6,509.9
– between 1 and 5 years 3,926.3 7,260.1 10,873.3
– more than 5 years 6,541.5 12,694.0 19,082.1
Book value
including:
– liabilities to non-consolidated affiliated
63,760.6 88,723.5 105,957.0
companies
– liabilities to companies in which equity
74.3 N/A 150.8
investments are held 4,255.0 N/A 1,802.0

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Certificated Liabilities (22)
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Bonds issued
including:
– amounts becoming due before
14,403.7 37,519.6 83,023.2
December 31 of the following fiscal year 2,142.4 7,737.7 17,080.5
Other certificated liabilities 43,744.5 45,747.1 45,747.1
including those with residual maturities of
– up to 3 months 24,861.9 26,792.0 26,792.0
– between 3 months and 1 year 18,348.5 18,353.2 18,353.2
– between 1 and 5 years 105.9 199.1 199.1
– more than 5 years 428.3 402.8 402.8
Book value
including:
– certificated liabilities to non-consolidated
58,148.2 83,266.7 128,770.3
affiliated companies
– certificated liabilities to companies in
0.0 N/A 0.0
which equity investments are held 127.2 N/A 934.1
Trust Liabilities (23)
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Liabilities to banks 83.8 86.2 271.2
Liabilities to customers 52.6 1,389.3 3,034.0
RWI certificates 375.0 419.2 419.2
Other liabilities 0.0 0.0 964.0
Book value 511.4 1,894.7 4,688.4
135

136
Other Liabilities (24)
The main components of this item, which is € 8,575.4 million (2001: € 8,846.2 million), are:
� € 4,102.7 million (2001: € 4.272.1 million)
in securities delivery obligations
� € 283.0 million (2001: –.–)
in offsetting items from the valuation of currency transactions
� € 2,284.1 million (2001: € 1,890.3 million)
in premiums from options
� € 301.4 million (2001: € 423.8 million)
in interest payments for profit participation rights and subordinated liabilities
Deferred Items (25)
Special Item with Partial Reserve Character (26)
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Premiums from own bonds issued 22.3 15.8 74.9
Other 527.4 1,184.1 1,392.0
Book value 549.7 1,199.9 1,466.9
This item was formed in fiscal year 1999 because WestLB Group had to comply with
the revaluation requirement on participations, loans and securities under the 1999/
2000/2002 Tax Relief Act. Pursuant to § 273 of the German Commercial Code (HGB), in
conjunction with § 6 (1) and § 52 (16) of the German Income Tax Act (EStG), four-fifths
of the written-up amounts were transferred to the special item with partial reserve
character.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Provisions (27)
Provisions include those for deferred taxes in the amount of € 12.2 million (2001:
€ 45.3 million). Total provisions amount to € 2,357.8 million (2001: € 3,905.9 million);
€ 1,976.9 million (2001: € 2,861.3 million) is attributed to WestLB AG. Additionally,
the Group formed a provision in the amount of € 126.9 million for anticipated losses
resulting from the final consolidation of WPS Bank in 2003.
Subordinated Liabilities (28)
Subordinated liabilities
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Balance on January 1 48.4 57.5 58.4
Allocations 4.0 – 42.6
Division-related deductions – – 9.1 –
Releases – 27.1 – – 22.2
Consolidation – 21.3 – – 21.3
Book value 4.0 48.4 57.5
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Book value
including:
5,067.0 6,580.1 6,829.6
– due within 2 years 1,083.3 1,162.3 1,162.3
There are no subordinated liabilities to affiliated companies and to companies in which
equity investments are held.
Of the subordinated liabilities of € 5,067.0 million (2001: € 6,829.6 million), the junior
bond of US$ 750.0 million (due 2009; interest rate 6.05%) issued by WestLB AG’s New
York Branch exceeds 10% of the total value of all subordinated liabilities. There is no
early repayment obligation. There is no existing or planned agreement to convert these
funds into capital or another form of debt.
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Of the total subordinated liabilities, € 1,083.3 million have a residual maturity of less
than two years. The original maturities range between 5 and 40 years.
The Bank incurred interest expense of € 450.4 million (2001: € 579.1 million) for
subordinated liabilities in 2002.
Subordinated liabilities carried by WestLB AG or its subsidiaries comply with the
requirements of § 10 (5 a) of the German Banking Act (KWG); the right to terminate
the liabilities without notice has not been reserved.
Capital and Reserves (29)
At December 31, 2002, the subscribed capital of WestLB AG was € 950.5 million. It is
divided into 9,505,000 no-par-value shares, each with a theoretical par value of € 100.00.
As the sole founder of WestLB AG, Landesbank NRW subscribed to all of WestLB AG’s
capital. Contributions to this capital have been paid in full using the assets of the former
Westdeutsche Landesbank Girozentrale – Anstalt des öffentlichen Rechts. In the course
of creating Landesbank NRW and Landesbausparkasse as separate legal entities,
€ 500.0 million of subscribed capital and € 225.0 million from retained earnings were
transferred. At the same time, the special reserves pertaining to the Wohnungsbauförderungsanstalt
were transferred to Landesbank NRW; WestLB AG received € 2,000.0
million in cash capital, € 266.7 million of which represents subscribed capital and
€ 1,733.3 million of which was placed in capital reserves.
The Managing Board was authorised by a resolution of the shareholders’ meeting on
December 11, 2002 to increase the capital by a maximum of € 166.7 million by issuing
new shares.
WestLB Group has reserves totalling € 4,043.8 million (2001: € 7,605.5 million);
€ 610.0 million was taken out of retained earnings to cover WestLB AG’s net loss for
the year. An additional € 1,120.4 million was released from Group reserves to cover the
consolidated net loss for the year. Group reserves were reduced further in the course
of the transitional consolidation of the Landesbank Schleswig-Holstein and Landesbank
Rheinland-Pfalz Groups. This reduction was strictly technical in nature, and is not a
reflection of any decrease in the value of the WestLB Group or any shortcoming of the
Group.
The fund for general bank risks stands at € 261.9 million. The decrease is chiefly
attributable to the division of WestLB GZ (€ 221.0 million) and the at-equity
consolidation of Landesbank Schleswig-Holstein and Landesbank Rheinland-Pfalz
(together € 113.4 million).

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
The drop in subordinated liabilities and profit participation capital can also be attributed
in large measure to the division of WestLB GZ (€ 499.6 million) and the at-equity
consolidation of Landesbank Schleswig-Holstein and Landesbank Rheinland-Pfalz
(together € 1,779.1 million).
In addition, exchange rate fluctuations had a negative impact on WestLB AG’s capital
and reserves, decreasing the total by € 371.0 million (as compared to an increase of
€ 71.6 million in 2001).
The changes in the Group’s profit participation capital were as follows in the year
under review:
WestLB GZ Division-Related Reductions from WestLB Additions Other WestLB
Group Reductions Transitional Consolidations Group Changes Group
Dec. 31, 2001 Jan. 1, 2002 Jan. 1, 2002 Jan. 1, 2002 Dec. 31, 2002
€ millions € millions € millions € millions € millions € millions € millions
3,421.3 – 250 – 635.1 2,536.2 – – 1.0 2,535.2
The following table depicts the breakdown of the profit participation capital by maturity
(nominal, before deduction of disagio):
Maturity € millions
2003 12.1
2004 0.0
2005 92.0
2006 232.1
2007 495.4
2008 225.6
2009 621.6
2010 316.9
2011– 2020 539.5
Total 2,535.2
Profit participation capital (bearer and registered rights) earned interest of € 173.4 million
in the year under review.
Of the total € 2,535.2 million in profit participation capital reported on the balance
sheet, € 2,521.1 million thereof counts toward liable equity capital under § 10 (5) of the
German Banking Act (KWG). Profit participation rights share in losses in accordance
with their terms and conditions. The claims of profit participation right holders for
repayment of their capital are subordinate to the claims of other creditors.
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BALANCE SHEET ITEM
Liability for Pre-Existing Commitments – Grandfathering (30)
Article 1 § 11 of the Act on Redefining the Legal Status of Public-Law Banking
Institutions in North Rhine-Westphalia (Gesetz zur Neuregelung der Rechtsverhältnisse
der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen) stipulates that the
public-law liability mechanisms of institutional liability and guarantor liability will
continue to apply to WestLB AG. This provision is consistent with the agreement
reached between Germany and the European Commission on July 18, 2001.
Specifically, this means that
� all liabilities incurred by July 18, 2001 are fully covered by institutional and
guarantor liability until the time they mature, and
� institutional and guarantor liability will remain in effect in their present form for
all liabilities incurred from July 19, 2001 to July 18, 2005, so long as the liabilities
mature by December 31, 2015.
The guarantors of the former Westdeutsche Landesbank Girozentrale will completely
satisfy the obligations arising from their guarantor liability with respect to WestLB AG,
as soon as they have properly determined and set forth in writing at the time a liability
matures that the creditor of such liability cannot be satisfied from the respective
institution’s assets. This explicitly includes the possibility of servicing debts precisely
at the same time they fall due. The giving of a notice as normally required under aid
law will not be necessary.
The following amounts represent those of the WestLB Group’s liabilities covered by
institutional and guarantor liability before consolidation.
€ millions Maturity Maturity
incurred prior to July 19, 2001 incurred after July 19, 2001
Payable at any time Payable by Dec. 31, 2015
Liabilities to customers 13,059.7 58,644.5
Liabilities to banks 17,317.2 117,019.2
Certificated liabilities 10,788.7 47,356.0
Other liabilities 22.1 8,093.2
Subordinated liabilities 8,315.2 49,502.9 456.0 231,568.9
Consolidation 27,892.9
Total 253,178.9

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
At December 31, 2002, the amount of liabilities covered by institutional and guarantor
liability after consolidation was € 253.2 billion. Allowing for a total of approx. € 11 billion
in equity (including the fund for general bank risks), deferred items, provisions, profit
participation capital and trust liabilities, this means that 95.3% of total liabilities are
covered by guarantor liability.
Deposit Insurance (31)
As the legal successor to Westdeutsche Landesbank Girozentrale, WestLB AG is a member
of the German Savings Banks and Giro Association (DSGV) and makes contributions to
the security reserves of the Landesbanks. These security reserves constitute protection
for contributing banks within the meaning of § 12 of the German Deposit Protection
and Investor Compensation Act (Einlagensicherungs- und Anlegerentschädigungsgesetz,
EAG) and are associated in local statutes with the deposit insurance scheme of the
savings banks.
The deposit insurance scheme of the German savings banks organisation consists of
twelve funds belonging to the regional savings banks and giro associations, the security
reserves of the Landesbanks and the security fund of the Landesbausparkassen, which
together form a community of joint liability. There are rules and regulations governing
the relationships between regional and national funds that provide for offsetting in
cases where coverage is claimed (so-called overflow agreements).
Commission Decision on Wfa Integration (32)
In 1992 the State of North Rhine-Westphalia transferred the assets of the Wohnungsbauförderungsanstalt
(Wfa) to Westdeutsche Landesbank Girozentrale as part of a
contribution in kind, a move which brought Westdeutsche Landesbank Girozentrale
roughly € 2 billion in additional liable capital under § 10 a of the German Banking
Act (KWG).
In 1993 the private banks filed a complaint which challenged the remuneration for the
capital that was contributed. They alleged that it constituted impermissible aid. In 1997,
the European Commission initiated state aid proceedings.
In 1999 the state aid proceedings culminated in the Commission’s decision that,
because the remuneration for the Wfa capital was allegedly too low, Westdeutsche
Landesbank Girozentrale had received approximately € 800.0 million in state aid
between 1992 and 1999.
The German Federal Government, State of North Rhine-Westphalia and WestLB AG
each filed an appeal against the Commission’s decision with the European Court of
First Instance (proceedings for annulment).
Regardless of these appeals, WestLB AG was obligated to implement the Commission’s
decision.
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The method of implementation which WestLB chose involved a non-cash settlement
based on WestLB’s increase in value, but the Commission did not accept this solution
and brought another action against WestLB with the European Court of Justice
(proceedings for failure to fulfil an obligation).
A judgement was handed down in the proceedings for failure to fulfil an obligation on
December 12, 2002. It was determined that the
� implementation proposed by WestLB was not sufficient, but
� non-cash solutions are, in principle, permissible.
Westdeutsche Landesbank Girozentrale transferred Wfa to Landesbank NRW on
August 1, 2002 as part of the division of WestLB GZ. The Commission expressly
accepted this solution with respect to the future. Therefore, the proceedings before
the European Courts apply exclusively to the past.
On March 6, 2003, the European Court of First Instance overturned the decision made
by the Commission on July 8, 1999. It was ruled that the Commission was to bear the
costs of the proceedings.
The consequences of this judgement are as follows:
� The plaintiffs were completely successful with their petitions to the European Court.
� Through the reversal, it is as if the Commission’s decision were never made.
� As a result, the need to implement the decision also lapses. Accordingly, where
the judgement on the proceedings for failure to fulfil an obligation concerns
implementation of the Commission’s decision, that judgement has been rendered
invalid.
� The Court overturned the Commission’s decision of 1999 because the Commission
failed to comply fully with its obligation under European law to substantiate the 12%
base rate of return and 1.5% risk premium it alleged should have been the basis of
the remuneration for the Wfa capital.
� Since both of these parameters were of paramount importance to the economic
analysis underlying the Commission’s strategy, the Court was unable to make any
definitive judgement on the reasonableness of the Wfa remuneration.
The European Commission is expected to follow the standard procedure in such cases
and issue a new decision, since its original decision was overturned. This new decision
will take into account the deliberations of the European Court of First Instance.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Banking Act Ratios and Recommendations of the Basle Committee
on Banking Supervision Regarding Capital and Reserves (33)
WestLB Group and the companies belonging to the WestLB Group adhered at all times
to the ratios relating to own funds and liquidity as defined in §§ 10, 10 (a) and 11 of
the German Banking Act (KWG). The recommendations on capital and reserves of the
Basle Committee on Banking Supervision were complied with on the basis of national
regulations.
Foreign Currency Assets/Foreign Currency Liabilities (34)
At year-end, WestLB Group had foreign currency assets valued at € 103.1 billion (2001:
€ 154.2 billion) and foreign currency liabilities valued at € 106.4 billion (2001:
€ 164.5 billion).
Other Commitments (35)
The amounts shown for irrevocable credit commitments involve credit lines which have
not yet been utilised. Total irrevocable credit commitments fell € 24,163.4 million to
€ 78,199.9 million.
The volume of € 78.2 billion shown on the balance sheet stems from current domestic
and international lendings, as well as liquidity facilities in connection with asset backed
transactions.
Disposal Restrictions/Security Provisions (36)
As part of the European Central Bank’s peak refinancing facility for open-market
repo transactions with the Bundesbank, WestLB Group has deposited or assigned
€ 14,575.0 million (2001: € 21,586.4 million) of its own bonds and securities, as well as
those of affiliated companies, as collateral. Accounts receivable totalling € 926.9 million
(2001: € 965.0 million) were assigned to secure loans made as part of public credit
programmes. In some cases, the Group’s business activities abroad were subject to
legal requirements and local practices that required the provision of collateral to public
institutions and banks. Compliance with such requirements tied up € 4,909.1 million
(2001: € 5,829.4 million) in assets.
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Contingent Liabilities (37)
WestLB Group’s liability to make additional contributions to the Liquiditätskonsortialbank
of which it is a member stood at € 65.3 million (2001: € 87.8 million). In 2002, the Group
was responsible for making additional contributions of € 5.9 million to the security
reserves of the Landesbanks/Girozentralen. The Group may incur additional obligations
with respect to its joint liability for the additional contributions to the Liquiditätskonsortialbank
from partners who are members of the German Savings Banks and Giro
Association.
At year-end 2002, WestLB AG reported € 9.9 million in indirect pension obligations,
an amount which exceeded the cash assets of WestLB GmbH’s benefit fund and would
have had to be offset by funds from WestLB AG.
Letter of Comfort (38)
WestLB AG will, except in the case of political risk, ensure that – proportionate with
its investment quota – the banks, financial institutions and management companies in
which it holds a significant investment will be in a position to meet their obligations.
Enterprises covered by this Letter of Comfort and the amount of WestLB’s investment
quotas in such enterprises are set forth in a table on Page 116 of the Notes to the
WestLB Group AG Annual Accounts.
The Letter of Comfort applies to WestLB Asset Management (Australia) Pty. Ltd.
irrespective of WestLB AG’s investment quota.
Guarantor Liability (39)
Together with its wholly owned subsidiary WestLB Beteiligungsholding GmbH, WestLB AG
is a guarantor, to the extent permitted by law, of Landesbank Rheinland-Pfalz, Mainz,
and Landesbank Schleswig-Holstein, Kiel, as well as a direct guarantor of Westdeutsche
ImmobilienBank, Mainz, and DekaBank Deutsche Girozentrale, Frankfurt/Main.
Corporate Governance Code (40)
In February 2002, the government commission appointed by the German Ministry of
Justice presented the German Corporate Governance Code. Following the government
commission’s example, the Managing Board and Supervisory Board of WestLB AG
resolved to implement their own rules of corporate governance as WestLB AG
commenced commercial operations in August 2002. As a non-listed company, WestLB AG

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
is assuming a voluntary obligation by adopting its own rules, which to a great extent
are based on the provisions of the German Corporate Governance Code that apply to
non-listed companies. WestLB AG has published these rules on its homepage.
WestLB AG’s Rules of Corporate Governance publicly document its commitment to
a responsible system of management and supervision that focuses on an ongoing
increase in its overall value. The rules target the relationship between WestLB AG and
its shareholders, the duties and responsibilities of the Managing Board and Supervisory
Board, as well as the Bank’s accounting principles and standards of transparency. The
Rules of Corporate Governance are meant to promote and increase the level of trust
that current and future customers, shareholders, employees and the public at large
have in WestLB AG, both in Germany and abroad. The Supervisory Board and the
Managing Board fully support these rules. They have also been incorporated into the
rules adopted by the Supervisory Board of WestLB AG for the conduct of its business.
Since there were only five months between the adoption of WestLB AG’s corporate
governance rules in August 2002 and the end of the year, not all of the changes
required by the Rules of Corporate Governance could be made. Due to these time
constraints, as well as the special circumstances surrounding each process involved
in establishing the new WestLB AG, deviations from the corporate governance rules
will not be discussed here.
Other Financial Obligations (41)
WestLB Group has rental and leasing obligations of € 123.4 million (2001: 186.4 million).
Its other financial obligations total € 13.8 million (2001: € 663.2 million).
Landesbank NRW and WestLB AG will be jointly and severally liable until the end of
2006 for all liabilities that were incurred before the division of WestLB GZ. WestLB
AG’s joint liability will also be covered by the liability for pre-existing commitments
assumed by the former guarantors of WestLB GZ.
The Group has no other financial obligations that are reportable under § 251 of the
German Commercial Code (HGB).
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Risk Provisions (42)
ALLOWANCES FOR SPECIFIC RISKS AND GENERAL LOAN LOSS PROVISIONS
(EXCL. RESERVES PURSUANT TO § 340 f, § 340 g HGB; EXCL. GLOBAL PROVISION)
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Beginning balance 3,004.7 2,587.7 2,720.3
Division-related deductions – 146.4 – –
Allocations 2,162.0 1,117.4 1,154.1
Write-backs – 420.3 – 404.4 – 422.5
Depletions – 339.7 – 509.7 – 515.5
Market value differences/Other changes – 220.5 67.3 68.3
Ending balance 4,039.8 2,858.3 3,004.7
WRITE-DOWNS AND ADJUSTMENTS PURSUANT
TO § 340 f (3) AND § 340 c (2) HGB
WestLB WestLB WestLB GZ
Group Group Group
after Division
Dec. 31, 2002 Jan. 1, 2002 Dec. 31, 2001
€ millions € millions € millions
Result of provisions – 1,916.0 – 751.1 – 774.3
Expenses from loans and securities: – 2,010.9 – 987.0 – 1,010.2
thereof – loans – 1,987.3 – 910.1 – 927.6
thereof – securities – 23.6 – 76.9 – 82.6
Income from participations and securities: 94.9 235.9 235.9
thereof – participations 210.0 146.3 146.3
thereof – securities – 115.1 89.6 89.6
Pursuant to § 340 f (3) of the German Commercial Code (HGB) the income and expenses
of the WestLB Group resulting from the evaluation of the lending business were
offset by write-ups and write-downs on securities held in the liquidity reserve; the net
result was a loss of € 2,010.9 million. Similarly, pursuant to § 340 c (2) of the German
Commercial Code (HGB), the expenses for participations, shares in affiliated companies,
as well as securities held in the investment portfolio, were offset by the income amounts
for these investments. The net gain was € 94.9 million.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Result of Leasing Activities (43)
The income from leasing activities includes regular leasing income, as well as capital
gains on the sale of leased property in the amount of € 2.5 million (2001: € 7.8 million).
The related expenses include depreciation of € 152.8 million (2001: € 116.8 million)
and refinancing expenses of € 37.2 million (2001: € 39.7 million).
Extraordinary Result (44)
The extraordinary expenses include, for the most part, the expenses for restructuring
measures, particularly in the area of personnel, as well as a contribution to the flood
relief campaign sponsored by the German Savings Banks and Giro Association
(Deutscher Sparkassen- und Giroverband, DSGV).
Most of the extraordinary income resulted from the sale of the private banking business.
Geographic Breakdown of Profit Components (45)
The principal components of profit shown in the WestLB Group’s statement of income
were obtained in the following markets in fiscal year 2002:
€ millions Interest Income/ Commission Net Income from Other Operating
Current Income Income Trading Operations Income
Germany 8,031.0 418.5 38.9 544.6
Rest of Europe 8,431.1 246.6 23.6 484.5
North America 3,343.9 244.7 66.3 318.2
South America 192.4 5.7 – 11.6 193.4
Asia/Australia 1,016.6 46.1 9.5 51.2
The geographic breakdown of income was determined on the basis of the domicile of the
subsidiary or branch on whose account the transaction is carried or which was responsible
for the transaction. Amounts shown are gross and taken before consolidation. This table
includes the profit/loss that was derived from transactions between the regional units, but
eliminated in the statement of income.
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Number of Employees (46)
The average number of employees in 2002 was as follows:
Male Female Total After Division Total
2002 and Transitional 2001
Consolidation
Domestic Group companies 3,278 2,472 5,750 6,311 8,701
Foreign Group companies
Group companies consolidated
2,369 1,518 3,887 3,927 3,927
on a pro rata basis 144 129 273 268 2,046
Total 5,791 4,119 9,910 10,506 14,674
Of the total Group employees, 231 were engaged in apprenticeship training or
equivalent training at year-end.
Remuneration of the Governing Bodies (47)
The total remuneration paid to WestLB AG’s Managing Board in 2002 was € 6.7 million
(2001: € 7.6 million); pensions paid to former members of the Managing Board or their
survivors amounted to € 3.9 million (2001: € 3.2 million). Remuneration paid to the
members of the Supervisory Board amounted to € 0.5 million (2001: € 0.5 million),
while that paid to the Guarantors’ Meeting amounted to € 0.1 million (2001: € 0.1 million)
and that paid to the members of the Advisory Boards was € 0.5 million (2001: € 0.4
million).
There are pension provisions in the amount € 36.2 million (2001: € 30.7 million) for
former members of WestLB AG’s Managing Board and their survivors.
Loans to Members of the Governing Bodies (48)
The members of the Managing Board of WestLB AG received advances and loans
totalling € 0.6 million (2001: € 3.6 million). The members of the Supervisory Board
of WestLB AG received advances and loans totalling € 0.4 million.
In 2002 members of the Supervisory Board of WestLB Girozentrale received advances
and loans totalling € 1.1 million, while members of the Guarantors’ Meeting received
advances and loans totalling € 0.2 million and members of the Advisory Boards of
WestLB Girozentrale received advances and loans totalling € 0.6 million.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Shareholdings in WestLB AG (49)
Landesbank NRW holds 100% of the subscribed capital of WestLB AG. WestLB AG
was given notice hereof in accordance with § 20 (1) and (4) of the German Stock
Corporation Act (AktG).
Group Shareholdings (50)
Excluding jointly managed companies, companies of the WestLB Group hold more than
5% of the voting rights in the following major corporations:
AKA Ausfuhrkredit-Gesellschaft mbH, Frankfurt/Main
AXA Investment Managers Deutschland GmbH, Cologne
Babcock Borsig Aktiengesellschaft, Oberhausen
Coperion Holding GmbH, Constance
Corac Group plc, Uxbridge, Great Britain
Deutsche Anlagen-Leasing GmbH, Mainz
European Sovereign Investments Limited Partnership
Girindus AG, Bergisch Gladbach
Global Trade Finance Priv. Ltd., Mumbai, India
Metro Capital B.V., Venlo-Blerick
Nordex AG, Norderstedt
RW Holding AG, Düsseldorf
Technotrans AG, Sassenburg
The Wireless Group plc, London, Great Britain
TUI AG, Berlin and Hanover
WestInvest Gesellschaft für Investmentfonds mbH, Düsseldorf
Companies of the WestLB Group are general partners of the following companies:
Darnley Estates Unlimited, Dublin
GLB GmbH & Co. OHG, Frankfurt/Main
Grundstücksgesellschaft am Fürstenwall (GbR), Düsseldorf
Société Civile Immobilière Franco-Allemande (SCIFA), Paris
Seats Held by Members of the Managing Board and
Group Employees (51)
Members of WestLB AG’s Managing Board and Group employees (excluding jointly
managed companies) are members or chairmen of the following companies’ supervisory
boards or other supervisory bodies. Offices marked with an asterisk indicate voluntary
disclosures that fall outside of the reporting requirements regarding seats on the
boards of major corporations pursuant to § 340 (a) (4) No. 1, in conjunction with
§ 267 (3), of the German Commercial Code (HGB).
149

150
Seats Held by Members of the Managing Board
Jürgen Sengera
AXA Konzern AG
DekaBank Deutsche Girozentrale*
Deutsche Post AG
DHL Worldwide Express B.V.* (until December 2, 2002)
Ford Deutschland Holding GmbH
Ford-Werke AG
INTERSEROH AG (until June 27, 2002)
Landesbank Rheinland-Pfalz Girozentrale*
Landesbank Schleswig-Holstein Girozentrale*
Rockwool International A/S*
Westdeutsche ImmobilienBank*
Dr. Adolf Franke
Bank Austria AG*
Landesbank Rheinland-Pfalz Girozentrale*
Landesbank Schleswig-Holstein Girozentrale*
rhenag Rheinische Energie AG
RWE Gas AG
Westdeutsche ImmobilienBank*
Ernst Gerlach (from April 27 to July 31, 2002)
Georgsmarienhütte GmbH
Mannesmann Röhrenwerke AG
Hans Henning Offen (until August 31, 2002)
Gildemeister AG
Kaufhof Warenhaus AG
RWE Plus AG
ThyssenKrupp Materials AG
Trienekens AG (until July 29, 2002)
TUI AG
WestIntell AG*

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Dr. Wolf-Albrecht Prautzsch (until July 31, 2002)
Gerry Weber International AG
Hamburgische Landesbank Girozentrale*
Investitionsbank des Landes Brandenburg* (until August 1, 2002)
Landesbank Rheinland-Pfalz Girozentrale*
Landesbank Schleswig-Holstein Girozentrale*
Provinzial Holding Westfalen* (until September 30, 2002)
Provinzial Leben Holding Westfalen* (until September 30, 2002)
RAG Immobilien AG
Rethmann Beteiligungs AG
RWE Power AG
TA Triumph-Adler AG
Viterra AG
Westdeutsche ImmobilienBank* (until July 31, 2002)
Westfälische Provinzial Feuerversicherung AG (until September 30, 2002)
Westfälische Provinzial Lebensversicherung AG (until September 30, 2002)
Westfalen AG
Dr. Manfred Puffer
Österreichische Bundesfinanzierungsagentur Ges.m.b.H*
Dr. Johannes Ringel
Babcock Borsig AG
Howaldtswerke-Deutsche Werft AG (until August 5, 2002)
Hüttenwerke Krupp Mannesmann GmbH
Investitionsbank des Landes Brandenburg*
Klöckner & Co. AG
Nordex AG
Phoenix AG
Rütgers AG
STEAG AG
ThyssenKrupp Stahl AG
WestUBG – Westdeutsche Unternehmensbeteiligungs-AG*
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152
Gerhard Roggemann
AXA Lebensversicherung AG
Banca del Gottardo* (until November 27, 2002)
Börse Düsseldorf AG*
Deutsche Börse AG
Fresenius AG
Hapag-Lloyd AG
Solvay Deutschland GmbH
Veba Oel AG (until February 7, 2002)
VHV Autoversicherungs-AG
West Pensionsfonds AG*
West Pensionskasse AG*
Andreas Seibert
INTERSEROH AG
MDK Holdings Ltd.* (until July 17, 2002)
Preussag Energie GmbH
Singapore Aircraft Leasing Enterprise Ltd.*
Robert Restani
Landesbank Rheinland-Pfalz*
Westdeutsche ImmobilienBank*
Seats Held by Group Employees
The following employees are members or chairmen of the following companies’
supervisory boards:
Bernd Bennemann
Metro Capital B.V.
Philip Buscombe
Coperion Holding GmbH
Chestnutbay Limited
Southern Cross Healthcare Holdings Limited
Stephen Davidson
ENIC plc
Jeremy Hand
Chestnutbay Limited
Southern Cross Healthcare Holdings Limited

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Tom Kaiser
Deka International (Ireland)
Dr. Jörg Lauer
WestInvest Gesellschaft für Investmentfonds mbH, Düsseldorf
Wolfgang Richter
LBS Landesbausparkasse Bremen AG
Franz Ruf
DekaBank Deutsche Girozentrale Luxembourg S.A.
Rainer Schmitz
Deka Investment GmbH
Jürgen Schneider
JT International Germany GmbH
Jürgen Stinner
WestInvest Gesellschaft für Investmentfonds mbH, Düsseldorf
W. Jacobsen
Volker Undorf
Shamrock Resources Inc.
Joachim Voss
Technotrans AG
Manfred Wern
TCI Training & Consulting International AG
Dr. Alexander Winkels
Klöckner & Co. AG, Duisburg
Madaus AG
Schmitz-Cargobull AG
Schuh-Union AG, Zweibrücken (until September 30, 2002)
153

154
Governing Bodies of WestLB AG (52)
In calendar year 2002 the governing bodies of WestLB AG included those of
Westdeutsche Landesbank Girozentrale, for the period up to July 31, 2002 and
August 30, 2002 respectively, as well as those of WestLB AG, from August 1, 2002.
Supervisory Board (until August 30, 2002)
Ernst Schwanhold, Chairman
Minister, Ministry of Economics and Small and Medium-Sized Businesses,
Energy and Transport of North Rhine-Westphalia
Peer Steinbrück, MdL, Deputy Chairman
Minister, Ministry of Finance of North Rhine-Westphalia
Udo Molsberger, Deputy Chairman
Regional Director, Regional Association of the Rhineland
Wolfgang Schäfer, Deputy Chairman
Regional Director, Regional Association of Westphalia-Lippe
Dr. Karlheinz Bentele, Deputy Chairman
President, Savings Banks and Giro Association of the Rhineland
Dr. Rolf Gerlach, Deputy Chairman
President, Savings Banks and Giro Association of Westphalia-Lippe
Walter Haas
Chairman, DGB Regional District NRW
Heinz Kettler
HEINZ KETTLER Metallwarenfabrik GmbH & Co.
Dr. Hermann Krämer
Former member of the Managing Board of VEBA AG
Dr. Helmut Linssen, MdL
First Vice President of the State Assembly of North Rhine-Westphalia
Edgar Moron, MdL
Chairman of the SPD Parliamentary Group of North Rhine-Westphalia
Friedrich Späth
Former Chairman of the Managing Board of Ruhrgas AG

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Paul Heidrich
Chairman of the CDU Group, Regional Assembly of the Rhineland
Dr. Berthold Tillmann
Lord Mayor, City of Münster
Hans-Peter Krämer
Chairman of the Managing Board, Kreissparkasse Köln
Dieter Pützhofen
Lord Mayor, City of Krefeld
Rolf Brunswig (until June 30, 2002)
Chairman of the Managing Board, Sparkasse Siegen
Dr. Norbert Emmerich (from July 1, 2002 to August 30, 2002)
Chairman of the Managing Board, Sparkasse Münsterland Ost
Hans Pixa
District Administrator, Coesfeld District
Fred Eicke
Director, WestLB Düsseldorf
Hannelore Heger-Golletz
Bank officer, WestLB Münster
Gerd-Uwe Löschmann
Associate Director, WestLB Düsseldorf
Manfred Matthewes
Bank officer, WestLB Düsseldorf
Manfred Schimpf
Bank officer, WestLB Münster
Hubertus Schreiber
Bank officer, WestLB Münster
Elisabeth Weber
Bank officer, WestLB Düsseldorf
155

156
Franz-Georg Schröermeyer
Secretary, Financial Services
ver.di Vereinte Dienstleistungsgewerkschaft, Münster Regional Office
Christiane Stascheit
Deputy Director
ver.di Vereinte Dienstleistungsgewerkschaft, Düsseldorf Regional Office
Dr. Harald Noack
Under Secretary, Ministry of Finance of North Rhine-Westphalia
Dieter Krell
Assistant Secretary
Director of the Central Department of the Ministry of Economics and Small and
Medium-Sized Businesses, Energy and Transport of North Rhine-Westphalia
Karl Bechtel
Regional Councillor
Regional Association of the Rhineland
Dr. Hans-Ulrich Predeick
Regional Councillor
Regional Association of Westphalia-Lippe
Heinz Biesenbach
Association Director, Savings Banks and Giro Association of the Rhineland
Dr. Klaus Wienberg
Association Director, Savings Banks and Giro Association of Westphalia-Lippe
Guarantors’ Meeting of WestLB Girozentrale (until August 31, 2002)
Georg Wilhelm Adamowitsch, Moderator
Under Secretary
Head of the State Chancellery of North Rhine-Westphalia
Dr. Günter Berg
Assistant Secretary
Ministry of Finance of North Rhine-Westphalia
Dr. Thomas Griese
Under Secretary, Ministry of the Environment and Nature Conservation, Agriculture
and Consumer Protection of North Rhine-Westphalia

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Jörg Hennerkes
Under Secretary, Ministry of Economics and Small and Medium-Sized Businesses,
Energy and Transport of North Rhine-Westphalia
Bernd Kiesow
Senior Principal
Ministry of Finance of North Rhine-Westphalia
Manfred Morgenstern
Under Secretary, Ministry of Urban Development and Housing,
Culture and Sport of North Rhine-Westphalia
Cornelia Prüfer-Storcks
Under Secretary, Ministry of Women, Youth, Family and
Health of North Rhine-Westphalia
Johannes Winkel
Assistant Secretary, Ministry of the Interior of North Rhine-Westphalia
Winfried Schittges, MdL, Moderator
Chairman, Regional Assembly of the Rhineland
Harry Voigtsberger
Chairman of the SPD Group, Regional Assembly of the Rhineland
Dr. Wolfgang Kirsch, Moderator
District Administrator
Chairman of the CDU Group, Regional Assembly of Westphalia-Lippe
Dieter Gebhard
Chairman of the SPD Group, Regional Assembly of Westphalia-Lippe
Dr. Hans-Christian Vollert, Moderator
District Administrator, Viersen District Administration
Michael Kranz
Chairman of the Managing Board, Sparkasse Bonn
Paul-Gerhard Schmitz
Mayor, City of Gummersbach
Franz-Josef Leikop, Moderator
District Administrator, Hochsauerland District
Dr. Norbert Emmerich (until June 30, 2002)
Chairman of the Managing Board, Sparkasse Münsterland Ost
157

158
Josef Strauß (from July 1, 2002 to July 31, 2002)
Chairman of the Managing Board, Sparkasse Wittgenstein
Eckhard Schwerhoff
Mayor, City of Gladbeck
Guarantors’ Meeting of WestLB Girozentrale (from August 1, 2002 to August 30, 2002)
Dr. Bernd Lüthje
Chairman of the Managing Board, Landesbank NRW
Ernst Gerlach
Member of the Managing Board, Landesbank NRW
Dr. Ulrich Schröder
Member of the Managing Board, Landesbank NRW
Managing Board of WestLB GZ (until August 30, 2002)
Jürgen Sengera (Chairman)
Hans Henning Offen (Deputy Chairman)
Dr. Wolf-Albrecht Prautzsch (Deputy Chairman until July 31, 2002)
Dr. Adolf Franke
Ernst Gerlach (from April 27, 2002 to July 31, 2002)
Dr. Bernd Lüthje (from April 27, 2002 to July 31, 2002)
Dr. Manfred Puffer
Dr. Johannes Ringel
Gerhard Roggemann
Dr. Ulrich Schröder (from April 27, 2002 to July 31, 2002)
Andreas Seibert
Managing Board of WestLB AG (from August 1, 2002)
Jürgen Sengera (Chairman)
Dr. Adolf Franke
Klaus-Michael Geiger (from January 1, 2003)
Dr. Manfred Puffer
Robert Restani (deputy member from December 1, 2002)
Dr. Johannes Ringel
Gerhard Roggemann
Andreas Seibert

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Members of the Supervisory Board of WestLB AG (from August 1, 2002)
Dr. Bernd Lüthje, Chairman
Chairman of the Managing Board, Landesbank NRW
Gerd-Uwe Löschmann, Deputy Chairman (from September 3, 2002)
Associate Director, WestLB AG, Düsseldorf
Dr. Erich Bauer
Chief Executive Manager, TMD Friction Holding GmbH
Jean-Pascal Beaufret
Chief Financial Officer, Alcatel
Dr. Karlheinz Bentele
President, Savings Banks and Giro Association of the Rhineland
Thorsten Ellwanger (from September 3, 2002)
Associate Director, WestLB AG, Hamburg
Bernd Fiegler (from September 3, 2002)
Deputy State Director
ver.di Vereinte Dienstleistungsgewerkschaft, Regional District of
North Rhine-Westphalia
Dr. Rolf Gerlach (from September 2, 2002)
President, Savings Banks and Giro Association of Westphalia-Lippe
Horst-Wolfgang Klophaus (from September 3, 2002)
Manager, WestLB AG, Düsseldorf
Hans-Peter Krämer
Chairman of the Managing Board, Kreissparkasse Köln
Dr. Siegfried Luther
Deputy Chairman of the Managing Board, Bertelsmann AG
Manfred Matthewes (from September 3, 2002)
Bank officer, WestLB AG, Düsseldorf
Hartmut Mehdorn
Chairman of the Managing Board, Deutsche Bahn AG
Udo Molsberger
Regional Director, Regional Association of the Rhineland
159

160
Dr. Hans-Ulrich Predeick
Regional Councillor, Regional Association of Westphalia-Lippe
Henning Richerzhagen (from August 1, 2002 to September 2, 2002)
Legal Advisor
Savings Banks and Giro Association of Westphalia-Lippe
Heinz-Günter Sander (from September 3, 2002)
Bank officer, WestLB AG, Düsseldorf
Rainer Schmitz (from September 3, 2002)
Bank Director, WestLB AG, Düsseldorf
Franz-Georg Schröermeyer (from September 3, 2002)
Secretary, Financial Services
ver.di Vereinte Dienstleistungsgewerkschaft, Münster Regional Office
Christiane Stascheit (from September 3, 2002)
Deputy Director
ver.di Vereinte Dienstleistungsgewerkschaft, Düsseldorf Regional Office
Elisabeth Weber (from September 3, 2002)
Bank officer, WestLB AG, Düsseldorf
Düsseldorf/Münster, April 15, 2003/May 8, 2003*
WestLB AG
The Managing Board
Sengera Dr. Franke Geiger Dr. Puffer
Restani Dr. Ringel Roggemann Seibert
* The amendments of May 8, 2003 take into account additional risk provisions made for
a lending commitment and the related changes.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Auditor’s Opinion
We have audited the amended Group annual accounts and the amended Group statement
of financial condition prepared by WestLB AG, Düsseldorf/Münster, for the financial year
ending December 31, 2002. The preparation of the Group annual accounts and the Group
statement of financial condition according to German commercial law regulations and the
supplementary provisions contained in the articles and bylaws are the responsibility
of the legal representatives of the Bank. It is our task to give an opinion on the Group
annual accounts and the Group statement of financial condition on the basis of our audit.
We carried out our audit in accordance with § 317 of the German Commercial Code
(HGB) while complying with the German principles of proper auditing laid down by the
Institute of German Certified Public Accountants (IDW – Institut der Wirtschaftsprüfer).
According to these principles, the audit must be planned and carried out in a way
which ensures that errors and infringements which have a material impact on the
presentation of the Group’s net assets, financial condition and earnings in the Group
annual accounts and the Group statement of financial condition can be identified as not
being in accordance with generally accepted accounting principles. When defining the
audit processes, knowledge of the business activities and economic and legal environment
of the Group as well as the expectations regarding possible errors are taken into account.
In the context of the audit, the effectiveness of the internal control system and evidence
of the correctness of the information contained in the Group annual accounts and the
Group statement of financial condition are for the most part assessed on the basis of
samples. The audit covers an assessment of the annual accounts of the companies
included in the Group annual accounts, the scope of consolidation, the accounting
and consolidation principles applied and the relevant estimates made by the legal
representatives as well as an opinion on the overall presentation of the Group annual
accounts and the Group statement of financial condition. We are of the opinion that
our audit forms a sufficiently reliable basis for our assessment.
Our audit resulted in no objections.
In our opinion, the amended Group annual accounts, while complying with standard
accounting principles, present a true and fair view of the net assets, financial condition
and earnings of WestLB AG Düsseldorf/Münster. The amended Group statement of
financial condition adequately reflects the Group’s situation and the risks inherent in its
future development.
Düsseldorf, April 16, 2003/May 9, 2003
PwC Deutsche Revision
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
(Kütter) (Dr. Dicken)
German Public Accountant German Public Accountant
161

162
Report of the Supervisory Board
Foundation of WestLB AG and Composition of the Supervisory Board
On August 1, 2002, Landesbank Nordrhein-Westfalen was established under the Act on
Redefining the Legal Status of Public-Law Banking Institutions in North Rhine-Westphalia
(Gesetz zur Neuregelung der öffentlich-rechtlichen Kreditinstitute in Nordrhein-Westfalen);
on the same day, it was decided to convert Westdeutsche Landesbank Girozentrale (WestLB)
into a joint stock corporation. This change of legal status was effected on August 30,
2002, when WestLB AG was registered in the commercial registers of Düsseldorf and
Münster. In light of these developments, the present report of the Supervisory Board
covers both the activities of Westdeutsche Landesbank Girozentrale during the period
from January 1, 2002 to August 30, 2002, and the activities of WestLB AG, including
the transactions related to its foundation, during the period from August 1, 2002 to
December 31, 2002. A report on the activities of the Supervisory Board of WestLB with
regard to its supervisory functions for the period from January 1, 2002 to August 30,
2002 is provided further below.
In its capacity as company founder, Landesbank NRW appointed ten Supervisory Board
members as shareholder representatives for WestLB AG in accordance with §§ 30 para.
1, 31 para. 1 of the German Stock Corporation Act (AktG). At the Supervisory Board
meeting on August 1, 2002, the founding Supervisory Board elected the Chairman of the
Supervisory Board from among its members, adopted the rules for conducting business
of the Supervisory Board, elected the members of the Managing Board of WestLB AG,
approved the rules for conducting business of the Managing Board and reviewed and
endorsed the audit report prepared on the occasion of the foundation. After initiation of
the status process as defined in §§ 31 para. 3 AktG in conjunction with §§ 97-99 AktG,
ten employee representatives were legally appointed on September 3, 2002 in accordance
with § 104 AktG by way of resolutions of the local courts of Düsseldorf and Münster. At
the Supervisory Board meeting on September 4, 2002, the Supervisory Board elected
the Vice Chairman of the Supervisory Board from among the employee representatives.
The Personnel and Mediation Committee, the Chairman’s Committee, the Audit
Committee and the Risk Committee were set up at the same meeting.
Supervision and Advice of the Management
In the period from August 1 to December 31, 2002 (Reporting Period of the Supervisory
Board), the Supervisory Board of WestLB AG fulfilled the tasks entrusted to it by law

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
and in accordance with WestLB AG’s articles and bylaws, which include, in particular,
the ongoing supervision of the management of WestLB AG. During the reporting
period of the Supervisory Board, the Supervisory Board and its Committees were
regularly informed in detail about all relevant aspects of planning, the course of
business, the risk situation and risk management as well as about important events and
business transactions. Transactions requiring the approval of the Supervisory Board
were approved. Matters within the Supervisory Board’s sphere of responsibility were
addressed to the extent required. The Supervisory Board supervised and examined
the Managing Board’s management activities on the basis of the information provided
and the documents requested.
At the first regular Supervisory Board meeting of WestLB AG on September 4, 2002,
the Managing Board reported on the business situation of WestLB AG, the state of the
preparations for the capital increase and the equity investment activities. Items on the
agenda of the meeting on November 25, 2002 included the report on the business situation,
the equity investment activities and the Managing Board mandates, the election of the
human resources director, as well as a recommendation to the Annual Shareholders’
Meeting to increase the capital of WestLB AG by accepting a silent capital contribution
with subsequent conversion into shares of WestLB AG. A new Managing Board member
was elected at the special Supervisory Board meeting on December 7, 2002.
At its meetings on November 25, 2002 and December 7, 2002, the Chairman’s Committee
prepared the meetings of the Supervisory Board. At its first meeting on November 6,
2002, the Risk Committee addressed key aspects of the lending business and in particular
questions concerning the strategic risk positioning and risk-bearing capacity of the
Bank as well as the management of operational risks.
In addition to the meetings of the Supervisory Board and its Committees, the Chairman
of the Supervisory Board was regularly informed in detail by the Managing Board on
aspects of business policy and the state of business and discussed these matters with
the Managing Board.
Audit and Adoption of the Annual Accounts and the
Group Annual Accounts
All members of the Supervisory Board received the annual accounts and the statement
of financial condition as well as the Group annual accounts and the Group statement
of financial condition in advance of the Annual Supervisory Board Meeting on May 13,
2003. In its meetings on April 2, 2003 and May 12, 2003, the Audit Committee dealt
with the audit reports on the annual accounts and the Group annual accounts. All three
meetings were attended by the auditors, PwC Deutsche Revision Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft. The annual accounts and the Group annual accounts
as well as the statement of financial condition and the Group statement of financial
condition were audited by the auditors and received their unqualified audit opinion.
The Supervisory Board and the Audit Committee formed from among its members
examined the annual accounts and the statements of financial condition and discussed
in detail the results of the auditor’s report. Following the final result of the audit, they
163

164
raised no objections. The Supervisory Board adopted the annual accounts and
approved the Group annual accounts and proposed the appointment of the auditor for
the 2003 fiscal year to the Annual Shareholders’ Meeting.
In addition, the Managing Board submitted the report on relations with affiliated
companies pursuant to § 312 AktG and the related auditor´s report to the Supervisory
Board. Given that the audits did not give rise to any objections, the auditor issued the
following audit opinion:
“Following our dutiful audit and assessment, we confirm that
1. the information provided in the report is correct and that
2. the company received proper and reasonable remuneration for all services rendered.”
The Supervisory Board examined the report on relations with affiliated companies and
reviewed the related audit report. The Supervisory Board approved the reports without
any reservations or objections.
Corporate Governance Rules
Upon the foundation of WestLB AG, the Managing Board and the Supervisory Board
of WestLB AG adopted corporate governance rules. These voluntary rules are based on
the recommendations made by the German Corporate Governance Code for listed
companies. The corporate governance rules of WestLB AG aim to make the activities of
the Bank transparent to its customers, shareholders, employees and the general public
and to strengthen them. Moreover, they are designed to protect the company’s successful
performance by strengthening the Bank’s management and control. The focus is on
achieving a sustainable increase in the value of the company as a whole.
Given that there were only five months between the adoption of the corporate governance
rules because of the change of legal status in August 2002 and the end of the year, it
was not possible to make all adjustments required in conjunction with the introduction
of the corporate governance rules. Due to these time constraints, as well as the special
circumstances surrounding any company foundation, the differences between WestLB
AG’s corporate governance rules and the recommendations made by the German
Corporate Governance Code will not be discussed here.
Personnel Changes
In addition to the appointment of ten shareholder representatives and the legal
appointment of ten employee representatives, one personnel change occurred in the
2002 fiscal year: Henning Richerzhagen, Legal Advisor of the Savings Banks and Giro
Association of Westphalia-Lippe, resigned from office; he was succeeded by Dr. Rolf
Gerlach, President of the Savings Banks and Giro Association of Westphalia-Lippe.
Robert Restani joined the Managing Board of WestLB AG as a deputy member on
December 1, 2002. Klaus-Michael Geiger was appointed as a member of the Managing
Board with effect from January 1, 2003.

Financial Report Statement of Balance Sheet P&L Notes Supervisory
Financial Condition Board
Activities of the Supervisory Board of Westdeutsche Landesbank AG
from January 1 to August 30, 2002
During the period from January 1 to August 30, 2002 (Reporting Period of the
Supervisory Board), the business activities of WestLB were supervised and controlled
by the WestLB Supervisory Board. The Supervisory Board included members of the
Supervisory Board of WestLB AG established during the reporting period.
In fiscal year 2002, regular meetings of the Supervisory Board were held on March 13,
2002 and May 13, 2002. At these meetings, the Managing Board reported to the
Supervisory Board on the state of business, the restructuring of WestLB, the equity
investment activities, the reorganisation of the domestic branches, new issues by
WestLB, the annual accounts for fiscal year 2001, the issue of supplementary capital
by WestLB and real estate matters. At a special meeting on April 27, 2002, Dr. Bernd
Lüthje, Ernst Gerlach and Dr. Ulrich Schröder were appointed to the Managing Board
of WestLB, where they were involved in the preparations for the division of WestLB in
their capacity as future Managing Board members of Landesbank NRW.
At a total of seven meetings, the Chairman’s Committee prepared, among other things,
the meetings of the Supervisory Board. At its last two meetings on May 27 and July 3,
2002, the Chairman’s Committee addressed, in particular, the planned capital increase
as well as all key issues relating to the restructuring of the Bank. At two meetings on
April 22, 2002 and May 3, 2002, the Audit Committee discussed the annual accounts
for 2001. Special loan commitments were discussed at the seven meetings of the Credit
Committee. The Building Committee held one meeting to discuss the implementation of
the real estate strategy of the Banking Group.
The following personnel changes occurred in the Managing Board of WestLB in fiscal
year 2002. Dr. Manfred Puffer was appointed as a new Managing Board member with
effect from January 1, 2002. For the period from April 27, 2002 to July 31, 2002, the
Managing Board welcomed as members Dr. Bernd Lüthje, Ernst Gerlach and Dr. Ulrich
Schröder, who were appointed to the Managing Board of Landesbank NRW at the
Supervisory Board meeting of Landesbank NRW on August 1, 2002. The two Deputy
Chairmen of the Managing Board of WestLB, Dr. Wolf-Albrecht Prautzsch and Hans
Henning Offen, retired from office as of July 31, 2002 and August 31, 2002, respectively.
The Supervisory Board would like to express its thanks to the Managing Board and to
all employees for their efforts and commitment in 2002, in particular with regard to the
restructuring of the Bank.
Düsseldorf/Münster, May 13, 2003
Chairman of the Supervisory Board
Dr. Bernd Lüthje
165

Perspective
Names and Locations are listed in
the following chapter, which informs the reader about key
responsibilities and contacts within WestLB while also
providing selected service information.

The Company People and Markets Financial Report Names and Locations
Familiar things in places near and far. People who have
comprehensive know-how and speak the same language.
And who know what is important. To get you further.

168
Governing Bodies of WestLB AG
Members of the
Supervisory Board
(from August 1, 2002, if not stated
otherwise)
Dr. Bernd Lüthje
Chairman of the Managing Board
Landesbank NRW
Düsseldorf/Münster
Chairman
Gerd-Uwe Löschmann
Associate Director
WestLB AG
Düsseldorf
Deputy Chairman
– from September 3, 2002
Dr. Erich Bauer
Chief Executive Manager
TMD Friction Holding GmbH
Leverkusen
Jean-Pascal Beaufret
Chief Financial Officer
Alcatel
Paris
Dr. Karlheinz Bentele
President
Savings Banks and
Giro Association of the Rhineland
Düsseldorf
Thorsten Ellwanger
Associate Director
WestLB AG
Hamburg
– from September 3, 2002
Bernd Fiegler
Deputy State Director
ver.di Vereinte
Dienstleistungsgewerkschaft
Regional District of
North Rhine-Westphalia
Düsseldorf
– from September 3, 2002
Dr. Rolf Gerlach
President
Savings Banks and Giro Association
of Westphalia-Lippe
Münster
– from September 2, 2002
Horst-Wolfgang Klophaus
Manager
WestLB AG
Düsseldorf
– from September 3, 2002
Hans-Peter Krämer
Chairman of the Managing Board
Kreissparkasse Köln
Cologne
Dr. Siegfried Luther
Deputy Chairman of the
Managing Board
Bertelsmann AG
Gütersloh
Manfred Matthewes
Bank officer
WestLB AG
Düsseldorf
– from September 3, 2002
Hartmut Mehdorn
Chairman of the Managing Board
Deutsche Bahn AG
Berlin
Udo Molsberger
Regional Director
Regional Association of the
Rhineland
Cologne
Dr. Hans-Ulrich Predeick
Regional Councillor
Regional Association of
Westphalia-Lippe
Münster
Henning Richerzhagen
Legal Advisor
Savings Banks and Giro Association
of Westphalia-Lippe
Münster
– from August 1 to
September 2, 2002
Heinz-Günter Sander
Bank officer
WestLB AG
Düsseldorf
– from September 3, 2002
Rainer Schmitz
Bank Director
WestLB AG
Düsseldorf
– from September 3, 2002

The Company People and Markets Financial Report Names and Locations
Franz-Georg Schröermeyer
Secretary, Financial Services
ver.di Vereinte
Dienstleistungsgewerkschaft
Münster Regional Office
Münster
– from September 3, 2002
Christiane Stascheit
Deputy Director
ver.di Vereinte
Dienstleistungsgewerkschaft
Düsseldorf Regional Office
Düsseldorf
– from September 3, 2002
Elisabeth Weber
Bank officer
WestLB AG
Düsseldorf
– from September 3, 2002
Managing Board
Jürgen Sengera
Chairman
Dr. Adolf Franke
Klaus-Michael Geiger
– from January 1, 2003
Dr. Manfred Puffer
Robert Restani
Deputy Member
– from December 1, 2002
Dr. Johannes Ringel
Gerhard Roggemann
Andreas Seibert
169

170
Governing Bodies of the Former
Westdeutsche Landesbank Girozentrale
Guarantors‘ Meeting
(until July 31, 2002, if not stated
otherwise)
Georg Wilhelm Adamowitsch
Under Secretary
Head of the State Chancellery of
North Rhine-Westphalia
Düsseldorf
Dr. Günter Berg
Assistant Secretary
Ministry of Finance of
North Rhine-Westphalia
Düsseldorf
Dr. Thomas Griese
Under Secretary
Ministry of the Environment and
Nature Conservation, Agriculture
and Consumer Protection of
North Rhine-Westphalia
Düsseldorf
Jörg Hennerkes
Under Secretary
Ministry of Economics and Small
and Medium-Sized Businesses,
Energy and Transport of
North Rhine-Westphalia
Düsseldorf
Bernd Kiesow
Senior Principal
Ministry of Finance of
North Rhine-Westphalia
Düsseldorf
Manfred Morgenstern
Under Secretary
Ministry of Urban Development
and Housing, Culture and Sport of
North Rhine-Westphalia
Düsseldorf
Cornelia Prüfer-Storcks
Under Secretary
Ministry of Women, Youth,
Family and Health of
North Rhine-Westphalia
Düsseldorf
Johannes Winkel
Assistant Secretary
Ministry of the Interior of
North Rhine-Westphalia
Düsseldorf
Winfried Schittges, MdL
Chairman
Regional Assembly of the
Rhineland
Cologne
Harry Voigtsberger
Chairman of the SPD Group
Regional Assembly of the
Rhineland
Aachen
Dieter Gebhard
Chairman of the SPD Group
Regional Assembly of
Westphalia-Lippe
Gelsenkirchen
Dr. Wolfgang Kirsch
District Administrator
Chairman of the CDU Group
Regional Assembly of
Westphalia-Lippe
Warendorf
Michael Kranz
Chairman of the Managing Board
Sparkasse Bonn
Bonn
Paul-Gerhard Schmitz
Mayor
City of Gummersbach
Gummersbach
Dr. Hans-Christian Vollert
District Administrator
Viersen District
Viersen
Dr. Norbert Emmerich
Chairman of the Managing Board
Sparkasse Münsterland Ost
Münster
– until June 30, 2002
Franz-Josef Leikop
District Administrator
Hochsauerland District
Meschede

The Company People and Markets Financial Report Names and Locations
Eckhard Schwerhoff
Mayor
City of Gladbeck
Gladbeck
Josef Strauß
Chairman of the Managing Board
Sparkasse Wittgenstein
Bad Berleburg
– from July 1 to July 31, 2002
Guarantors‘ Meeting
(August 1 to August 30, 2002)
Dr. Bernd Lüthje
Chairman of the Managing Board
Landesbank NRW
Düsseldorf/Münster
Ernst Gerlach
Member of the Managing Board
Landesbank NRW
Düsseldorf/Münster
Dr. Ulrich Schröder
Member of the Managing Board
Landesbank NRW
Düsseldorf/Münster
Supervisory Board
(until August 30, 2002, if not
stated otherwise)
Chairman and Deputy Chairmen
Ernst Schwanhold
Minister of Economics and Small
and Medium-Sized Businesses,
Energy and Transport of
North Rhine-Westphalia
Düsseldorf
Chairman
Peer Steinbrück, MdL
Minister of Finance
of the State of
North Rhine-Westphalia
Düsseldorf
Deputy Chairman
Udo Molsberger
Regional Director
Regional Association
of the Rhineland
Cologne
Deputy Chairman
Wolfgang Schäfer
Regional Director
Regional Association
of Westphalia-Lippe
Münster
Deputy Chairman
Dr. Karlheinz Bentele
President
Savings Banks and Giro Association
of the Rhineland
Düsseldorf
Deputy Chairman
Dr. Rolf Gerlach
President
Savings Banks and Giro Association
of Westphalia-Lippe
Münster
Deputy Chairman
Members Appointed by the
Guarantors
Walter Haas
Chairman
DGB Regional District NRW
Düsseldorf
Heinz Kettler
HEINZ KETTLER
Metallwarenfabrik GmbH & Co.
Ense-Parsit
Dr. Hermann Krämer
Seevetal
Dr. Helmut Linssen, MdL
First Vice President of the
State Assembly of
North Rhine-Westphalia
Düsseldorf
Edgar Moron, MdL
Chairman of the
SPD Parliamentary Group of
North Rhine-Westphalia
Düsseldorf
Friedrich Späth
Essen
171

172
Paul Heidrich
Chairman of the CDU Group
Regional Assembly of the
Rhineland
Mülheim an der Ruhr
Dr. Berthold Tillmann
Lord Mayor
City of Münster
Münster
Hans-Peter Krämer
Chairman of the Managing Board
Kreissparkasse Köln
Cologne
Dieter Pützhofen
Lord Mayor
City of Krefeld
Krefeld
Rolf Brunswig
Chairman of the Managing Board
Sparkasse Siegen
Siegen
– until June 30, 2002
Dr. Norbert Emmerich
Chairman of the Managing Board
Sparkasse Münsterland Ost
Münster
– July 1 to August 30, 2002
Hans Pixa
District Administrator
Coesfeld District
Coesfeld
WestLB Staff Representatives
Fred Eicke
Director
Düsseldorf
Hannelore Heger-Golletz
Bank officer
Münster
Gerd-Uwe Löschmann
Associate Director
Düsseldorf
Manfred Matthewes
Bank officer
Düsseldorf
Manfred Schimpf
Bank officer
Münster
Hubertus Schreiber
Bank officer
Münster
Elisabeth Weber
Bank officer
Düsseldorf
Christiane Stascheit
Deputy Director
ver.di Vereinte
Dienstleistungsgewerkschaft
Düsseldorf Regional Office
Düsseldorf
Franz-Georg Schröermeyer
Secretary, Financial Services
ver.di Vereinte
Dienstleistungsgewerkschaft
Münster Regional Office
Münster
Permanent Representatives of the
Chairmen of the Supervisory Board
Dr. Harald Noack
Under Secretary
Ministry of Finance of
North Rhine-Westphalia
Düsseldorf
Dieter Krell
Assistant Secretary
Ministry of Economics and Small
and Medium-Sized Businesses,
Energy and Transport of
North Rhine-Westphalia
Düsseldorf

The Company People and Markets Financial Report Names and Locations
Karl Bechtel
Regional Councillor
Regional Association of the
Rhineland
Cologne
Dr. Hans-Ulrich Predeick
Regional Councillor
Regional Association of
Westphalia-Lippe
Münster
Heinz Biesenbach
Association Director
Savings Banks and Giro
Association of the
Rhineland
Düsseldorf
Dr. Klaus Wienberg
Association Director
Savings Banks and Giro
Association of Westphalia-Lippe
Münster
Managing Board
(of the former Westdeutsche
Landesbank Girozentrale)
Jügen Sengera
Chairman
Hans Henning Offen
Deputy Chairman
– until August 31, 2002
Dr. Wolf-Albrecht Prautzsch
Deputy Chairman
– until July 31, 2002
Dr. Adolf Franke
Ernst Gerlach
– April 27 to July 31, 2002
Dr. Bernd Lüthje
– April 27 to July 31, 2002
Dr. Manfred Puffer
Dr. Johannes Ringel
Gerhard Roggemann
Dr. Ulrich Schröder
– April 27 to July 31, 2002
Andreas Seibert
173

174
WestLB AG Locations
Domestic
WestLB AG
Herzogstraße 15
40217 Düsseldorf
Tel. + 49 211 826-01
Fax + 49 211 826-6119
Friedrichstraße 1
48145 Münster
Tel. + 49 251 412-01
Fax + 49 251 412-2921
Berlin
Unter den Linden 26–30
10117 Berlin
Tel. + 49 30 20189-0
Fax + 49 30 20189-320
Cologne
Ludwigstraße 2
50667 Köln
Tel. + 49 221 2049-01
Fax + 49 221 2049-660
Dortmund
Kampstraße 45
44137 Dortmund
Tel. + 49 231 1814-01
Fax + 49 231 1814-555
Frankfurt
Taunusanlage 3
60329 Frankfurt
Tel. + 49 69 2579-01
Fax + 49 69 2579-315
Munich
Lenbachplatz 2a
80333 München
Tel. + 49 89 55250-40
Fax + 49 89 55250-460
Hamburg
Domstraße 10
20095 Hamburg
Tel. + 49 40 33968-0
Fax + 49 40 33968-201
Foreign
Hong Kong
BA Tower, 36th Floor
12, Harcourt Road Central
Hong Kong
Tel. + 85 2 284202-88
Fax + 85 2 284202-96
| Head: Bruce Fraser
Representative offices in
Peking, Seoul, Taipei
Istanbul
Ebulula Mardin Caddesi
Maya Park Towers
80630 Akatlar Istanbul
Tel. + 90 212 3392500
Fax + 90 212 3522258
| Head: Dr. Peter Weingartz
London
Woolgate Exchange
25 Basinghall Street
EC2V 5HA London
Tel: + 44 20 7020-2000
Fax + 44 20 7020-2002
| Head: Dr. Horst Füllenkemper
Madrid
c/Velázquez, 123
28006 Madrid
Tel. + 34 91 432-8000
Fax + 34 91 432-8051
| Head: N.N.
Milan
Via Canova 36/38/40
20145 Milan
Tel. + 39 02 34974-1
Fax + 39 02 3450-360
| Head: Giorgio Binda
New York
New York Branch
Cayman Island Branch
International Banking Facility
1211, Avenue of the Americas
New York, NY 10036
Tel. + 1 212 852-6000
Fax + 1 212 852-6300
| Head: Moses Dodo
Representative offices in
Chicago, Houston, Los Angeles,
Mexico City
Paris
6, rue Lamennais
75008 Paris
Tel. + 33 1 40 75 75 00
Fax + 33 1 45 63 15 71
| Head: Philippe Bouckaert
Shanghai
12th Floor, Senmao International
Building
101, Yin Cheng East Road
Pudong New Area
Shanghai 200120
Tel. + 86 21 6841-3399
Fax + 86 21 6841-0788
| Head: Jasper Leung
Singapore
3 Temasek Avenue
# 33-00 Centennial Tower
Singapore 039190
Tel. + 65 333-2388
Fax + 65 333-2399
| Head: Ee-Ngoh Teo
Representative offices in
Bangkok, Jakarta, Mumbai
The addresses, including those of the
representative offices, are available on
the Internet at www.westlb.com

The Company People and Markets Financial Report Names and Locations
Sydney
Level 29, Westpac Plaza
60 Margaret Street
N.S.W. 2000 Sydney
Tel. + 61 2 9777-9900
Fax + 61 2 9777-9911
| Head: Günter Richert
Tokyo
Fukoku Seimei Building, 3F
2-2-2, Uchisaiwai-cho
Chiyoda-ku
100-0011 Tokyo
Tel. + 81 3 5510-6200
Fax + 81 3 5510-6299
| Heads: Michael Kramer,
Toshiya Oohashi
Toronto
Suite 1704, Box No. 52
95, Wellington Street West
Ontario M5J 2N7
Toronto
Tel. + 1 416 869-1085
Fax + 1 416 869-0771
| Head: Alik Kassner
Further representative offices in
Belgrade, Caracas, Dubai,
Johannesburg, Kiev, Prague,
Santiago de Chile, Zurich
Main Subsidiaries
WestLB Hungaria Bank Rt.
Madách Imre utca. 13–14
1075 Budapest
Tel. + 36 1 268-1680
Fax + 36 1 268-1933
| Management:
Jürgen Philipper, Géza Egyed
WestLB Ireland plc
IFSC House
I.F.S.C., Dublin 1
Tel. + 353 1 612-7100
Fax + 353 1 612-0112
| Management:
Thomas Kaiser
ZAO Bank WestLB Vostok
(formerly: ZAO Westdeutsche
Landesbank Vostok)
Povarskaja ul., 23
Building 4
121069 Moscow
Tel. + 70 95 258-6100
Fax + 70 95 258-6105
| Management: Volker Undorf,
Alexander Afanasiev
WestLB Bank Polska S.A.
(formerly: Westdeutsche
Landesbank Polska S.A.)
ul. Emilii Plater 28
00-688 Warsaw
Tel. + 48 22 6530-500
Fax + 48 22 6530-501
| Management: Bjork Hupfeld,
Tomasz Maciejewski,
Mazcej Stanczuk
WestLB Panmure Ltd.
Woolgate Exchange
25 Basinghall Street
EC2V 5HA London
Tel. + 44 20 7020-4000
Fax + 44 20 7020-4009
| Management:
Tim Linacre
WestLB Panmure Securities Inc.
1211, Avenue of the Americas
New York, NY 10036
Tel. + 1 212 852-6000
Fax + 1 212 852-6300
| Management:
Peter Jensen, John Parker
WestLB Securities S.A. (Pty) Ltd.
2nd Floor Corporate Place
23 Fredman Drive
Sandton 2196
Johannesburg
Tel. + 27 11 884-0410
Fax + 27 11 884-6736
| Management: Chris Kenny
WestLB Securities Australia Ltd.
Level 29, Westpac Plaza
60 Margaret Street
N.S.W. 2000 Sydney
Tel. + 61 2 9777-9977
Fax + 61 2 9777-9975
| Management:
Tony Gamson, Günter Richert
WestLB Securities Pacific Ltd.
Tokyo Branch
Fukoku Seimei Building, 3F
2-2-2, Uchisaiwai-cho
Chiyoda-ku
100-0011 Tokyo
Tel. + 81 3 5510-6300
Fax + 81 3 5510-6399
| Management:
Peter Clermont, Richard Gordon,
Jens Münster, Kurt Lambert
WestLB Asia Pacific Limited
3 Temasek Avenue
# 33-00 Centennial Tower
Singapore 039190
Tel. + 65 6 333-2388
Fax + 65 6 333-2399
| Management: N.N.
175

176
WestAM Holding GmbH
Herzogstraße 15
40217 Düsseldorf
Tel. + 49 211 826-4735
Fax + 49 211 826-7365
| Management Spokesman:
Luke Nunneley
WestLB Asset Management
Kapitalanlagegesellschaft mbH
Friedrichstraße 62–80
40217 Düsseldorf
Tel. + 49 211 826-07
Fax + 49 211 826-8750
| Management Spokesman:
Werner Peters
WestLB Asset Management
(UK) Ltd.
Woolgate Exchange
25 Basinghall Street
EC 2V 5HA London
Tel. + 44 20 7020-2000
Fax + 44 20 7020-2002
| Management: Alan Conway
WestLB Asset Management
(USA) LLC
10 South Wacker Drive
Suite 2960
Chicago, IL 60606
Tel. + 1 312 279-9300
Fax + 1 312 575-0222
| Management:
Donald W. Phillips
WestAM (USA) Ltd.
15305 Dallas Parkway
Suite 650
Addison, TX 75001
Tel. + 1 972 866-7880
Fax + 1 972 866-7881
| Management: Reiner Triltsch
WestLB Asset Management
(US) LLC
Marathon Oil Tower
Suite 2000
5555 San Felipe Boulevard
Houston, TX 77056
Tel. + 1 713 963-5200
Fax + 1 713 963-5235
| Management: Mark Vorbach
WestLB Asset Management
(Japan) Co., Ltd.
Hibiya Daibiru, 19th Floor
1-2-2, Uchisaiwaicho
Chiyoda-ku
100-0011 Tokyo
Tel. + 81 3 3539-6100
Fax + 81 3 3539-6190
| Management:
Kazuhito Yoshihara
WestLB Asset Management
(Australia) Pty. Ltd.
Level 32, Westpac Plaza
60 Margaret Street
N.S.W. 2000 Sydney
Tel. + 61 2 9777-8081
Fax + 61 2 9777-8080
| Management: Greg Vaughan
Banque d’Orsay S.A.
33, Avenue de Wagram
75017 Paris
Tel. + 33 1 40 55 44 00
Fax + 33 1 40 55 44 10
| Management:
Jean-Paul Malpuech
WestLB Covered
Bond Bank Ltd.
IFSC House
I.F.S.C., Dublin 1
Tel. + 353 1 612-7199
Fax + 353 1 670-0112
| Management:
Peter van Dessel
WestLB (France) S.A.
15, Avenue de Friedland
75008 Paris
Tel. + 33 1 40 75 75 00
Fax + 33 1 45 63 80 91
WestLB International S.A.
32–34, Boulevard
Grande-Duchesse Charlotte
2014 Luxembourg
Tel. + 35 2 44741-0
Fax + 35 2 44741-212
| Management:
Franz Ruf, Norbert Lersch,
Dr. Johannes Scheel
Banco WestLB do Brasil S.A.
Av. Engenheiro Luiz
Carlos Berrini, 716
7°/10° andar
04571-000 São Paulo
Tel. + 55 11 5504-9844
Fax + 55 11 5504-9933
| Management: Peter Badura
WestConsult Westdeutsche
Consulting GmbH
Itterpark 5
407245 Hilden
Tel. + 49 2103 2628-01
Fax + 49 2103 2628-30
| Management:
Rainer Birkendahl
WestKB
Westdeutsche Kapitalbeteiligungsgesellschaft
mbH
Herzogstraße 15
40217 Düsseldorf
Tel. + 49 211 826-01
Fax + 49 211 826-6168
| Management: Jürgen Germies,
Karlheinz Müller

The Company People and Markets Financial Report Names and Locations
WestLB Research GmbH
Elisabethstraße 44–46
40217 Düsseldorf
Tel. + 49 211 826-2203
Fax + 49 211 826-6361
| Management:
Dr. Helmut Henschel
West Pensions Consult GmbH
Herzogstraße 15
40217 Düsseldorf
Tel. + 49 211 826-2691
Fax + 49 211 826-6146
| Management:
Barbara Epe-Lichtenthäler,
Klaus F. Tolksdorf,
Bernhard Stoetzel
WestKC Westdeutsche
Kommunal Consult GmbH
Herzogstraße 15
40217 Düsseldorf
Tel. + 49 211 826-5119
Fax + 49 211 826-3597
| Management:
Rainer Jürgenliemk
WestLB Systems GmbH
Völklinger Straße 4
40219 Düsseldorf
Tel. + 49 211 826-03
Fax + 49 211 826-9418
| Management:
Ulrich Wollschläger,
Ferdinand Vogel
WestEK Westdeutsche
Einkaufskoordination GmbH
Graf-Adolf-Platz 12
40213 Düsseldorf
Tel. + 49 211 826-8800
Fax + 49 211 826-8810
| Management: Klaus Killinger
WestLB UK Ltd.
Woolgate Exchange
25 Basinghall Street
EC2V 5HA London
Tel. + 44 20 7020-2000
Fax + 44 20 7020-2002
| Management:
Dr. Horst Füllenkemper,
Lothar Dunkel,
Stephen Heyworth
Boullioun Aviation
Services Inc.
City Center Building
500 108th Avenue Northeast
25th Floor
Bellevue
Washington 98004-5533
Tel. + 1 425 454-3106
Fax + 1 425 454-31913
| Management:
Robert J. Genise, Dr. Heinz Westen,
John R. Willingham
Westdeutsche ImmobilienBank
Große Bleiche 46
55116 Mainz
Tel. + 49 6131 9280-0
Fax + 49 6131 9280-7200
| Chairman: Jürgen Stinner
Branches in
Cologne, Hamburg, London,
Mannheim, Munich, Münster
Representative offices in
Amsterdam, Madrid,
New York, Paris
Banque Européenne pour
l’Amérique Latine (BEAL) S.A.
Chaussée de la Hulpe 166
1170 Brussels
Tel. + 32 2 663-6900
Fax + 32 2 663-6959
| Management: Horst Magiera,
Dr. Hendirk Ernaelsteen
Cooperation Partners
Landesbank Rheinland-Pfalz
Girozentrale
Große Bleiche 54–56
55098 Mainz
Tel. + 49 6131 13-01
Fax + 49 6131 13-2724
Landesbank
Schleswig-Holstein
Girozentrale
after merger with Hamburgische
Landesbank on June 1, 2003:
HSH Nordbank AG
Martensdamm 6
24103 Kiel
Tel. + 49 431 900-01
Fax + 49 431 900-2446
Banca Carige S.p.A. Cassa
di Risparmio di Genova
e Imperia
Via Cassa di Risparmio, 15
16123 Genoa
Tel. + 39 010 579-2581
Fax + 39 010 579-4955
Gudme Raaschou
39–41, Kalvebod Brygge
1560 Copenhagen
Tel. + 45 33 4490-00
Fax + 45 33 4490-01
Standard Chartered Plc
WestLB Liaison Office
1, Aldermanbury Square
EC 2V 7SB London
Tel. + 44 20 728073-66
Fax + 44 20 728073-82
177

178
WestLB Business Units
with Managing Board Responsibilities
Jürgen Sengera
Chairman, + 49 211 826-2007
Communications/ Hombrecher
Economics + 49 211 826-2057
Parthe
+ 49 211 826-2200
Group Strategy/ von Lüpke
Controlling + 49 211 826-2774
Group Auditing Haake
+ 49 211 826-2270
Dr. Johannes Ringel
+ 49 211 826-2009
Corporates Dr. Füllenkemper
Western Europe + 44 20 7020-2205
Corporates Körner
Central/Eastern Europe + 49 211 826-71071
Corporates Dodo
Americas + 1 212 852-6002
Corporates Fraser
Asia/Pacific + 852 2842-0271
Group Marketing/ Gerritzen
Sales Support + 49 211 826-2409
Equity Investments Richter
+ 49 211 826-3584
Voss
+ 49 211 826-2467
Dr. Winkels
+ 49 211 826-6550
Principal Finance Saunders
+ 44 20 7020-7502
Capital & Mismatch Dutschke
Management + 49 211 826-5484
Group Organisation Schönenberg
+ 49 211 826-2266
Dr. Adolf Franke
Corporate Risk Officer, + 49 211 826-2100
Central Neuhaus
Credit Management + 49 211 826-2683
Credits Germany/ Becker
Europe + 49 211 826-4139
Credits America Neuhaus
+ 1 212 852-6003
Credits Asia/Pacific Dr. Ghaemmaghami
+ 65 6333-2505
Group Finance Knoke
+ 49 211 826-2251
Risk Management Bongers
Support & Control + 49 211 826-3841
Group Compliance Padberg
Office + 49 211 826-8016
Robert Restani
Deputy Member, + 49 211 826-2010
Sparkassen/ Dr. Brocke
Public-Sector Clients + 49 211 826-3986
Real Estate Clients N. N.
Holtmann
+ 49 251 412-2595
Krämer
+ 49 211 826-2621
Walter
+ 49 251 412-2180

The Company People and Markets Financial Report Names and Locations
Klaus-Michael Geiger
Chief Information Officer (CIO), + 49 211 826-2004
Global Back Office Dr. Fürer
+ 49 211 826-4692
Payments, CashManage- Kowalski
ment & Card Services + 49 211 826-2750
Chief Information N. N.
Office
WestLB Systems Dr. Vogel
+ 49 211 826-5624
Wollschläger
+ 49 211 826-3848
Cross Business Muckelmann
Applications + 49 211 826-3601
Internal Service Hutmacher
+ 49 211 826-7601
Gerhard Roggemann
+ 49 211 826-2005
Financial Institutions Reh
Europe/Middle East/Africa + 49 211 826-3004
Financial Institutions Châlons-Browne
Americas + 1 212 597-8315
Financial Institutions Clermont
Asia/Pacific + 81 3 5510 6702
Global Asset Nunneley
Management + 44 20 7020-7431
Banque d’Orsay Malpuech
+ 33 1 4055-4401
WestLB International, Lersch
Luxembourg + 352 44741-256
Ruf
+ 352 44741-201
Dr. Scheel
+ 352 44741-875
Legal Dr. Berghaus
+ 49 211 826-2242
Money Laundering Witte
Prevention + 49 211 826-2511
Dr. Manfred Puffer
+ 49 211 826-2006
WestLB Panmure Breuers
+ 49 211 826-5840
Linacre
+ 44 20 7020-5444
Schmitz
+ 49 211 826-3002
Wells
+ 44 20 7020-5200
WestLB Research Dr. Henschel
+ 49 211 826-6795
WSP Equities Münster
+ 81 3 5510-6320
Global Financial Clifton
Markets + 44 20 7020-3202
East
+ 44 20 7020-3232
Dr. Leclerc
+ 49 211 826-71055
McCaffrey
+ 1 212 852-5991
Mundt
+ 49 211 826-2692
Andreas Seibert
Human Resources Director, + 49 211 826-2008
WestLB do Brasil Badura
+ 55 11 5504-9941
BEAL Brussels Magiera
+ 32 2 663-6901
Global Specialised Höveler
Finance + 49 211 826-4160
Dr. Nickels
+ 49 211 826-3082
Human Resources Drzenski
+ 49 211 826-2400
179

180
Glossary
Arranger
Lead bank; institution that puts
together and manages a loan
syndicate.
Asset Management
Professional management of
assets, particularly for institutional
investors, performed under a
management contract.
Asset Securitisation
Method of financing whereby a
portfolio of (usually) similar assets
is converted into marketable
securities.
Benchmark Bond
Bond issued at an interest rate that
the market considers a reference
interest rate.
Bridge Financing
Interim or pre-financing. Financing
provided to companies to cover their
short-term capital requirements
or to bridge the time between the
occurrence of long-term capital
requirements and the receipt of
permanent capital.
Cash Management
A customer service strategy that
enables companies with several
divisions spread across different
countries to plan and manage their
liquidity in the most profitable way
possible. Carried out in large part
with computers.
Clearing
Regular institutionalised settlement
of matching claims and liabilities
among two or more partners.
Collateralised Debt Obligation
Bond that is secured by a diversified
debt portfolio.
Commercial Paper
Short-term, unsecured debt
instruments with flexible maturities
(max. 270 days) issued by top-rated
issuers. Commercial paper is a way
of covering short-term financing
requirements by going directly to
large investors.
Commodity Trade Finance
Commodity finance. Short-term,
transaction-based credit financing
of a company’s commercial
operations with listed commodities
or other marketable goods.
Corporate Finance
The sum of measures related to the
procurement, use and repayment
of capital by a company in the
non-banking sector.
Credit Default Swap
A financial contract (credit derivative)
whereby the party transferring
risk pays a premium to the party
accepting the risk (either in advance
or periodically) in exchange for
protection against a predefined
event (e.g. insolvency of the debtor
whose debt is being secured).
Debt Equity Swap
Type of swap whereby debt (of a
company or developing country) is
converted into equity in the debtor,
shares or similar forms of equity in
local companies of the debtor
country.
Derivatives
Securities whose value is derived
from the performance of another,
underlying asset.
Emerging Markets
Group of countries distinguished
by politico-economic reforms and
industrialisation. Criteria for being
labelled an emerging market
include: substantially higher growth
rates in aggregate economic output
as compared to more traditional
industrialised nations; high influx
of capital; declining, but still
relatively high inflation rates; high
foreign debt and steep deficits in
public spending.
Factoring
Selling of accounts receivable;
type of financial service whereby
a company sells or transfers title
to its accounts receivable to a
factoring institution that then acts
as the principal, i.e. not as the
agent.

The Company People and Markets Financial Report Names and Locations
Forfaiting
Non-recourse purchase of individual
medium and long-term export
receivables (goods and services)
with medium to high repayment
amounts. The exporter sells the
receivables to the forfaiter and also
transfers the existing collateral to
the forfaiter. In return, the forfaiter
pays the exporter the amount of
the receivables, minus a forfaiting
fee.
Funding
(Re-)financing
Hedge Fund
A pool of capital invested in
foreign currency, interest-bearing
securities, shares, commodities
and the corresponding derivatives,
where the leverage effect provided
by borrowed capital is sometimes
used. A hedge fund is subject to
minimal regulatory control.
Hedging
A method of evening out
(investment) risks.
Jumbo Bond
Bond issue whose volume generally
surpasses the € 0.5 billion mark
and which is known for its marketmaking
characteristics. In particular,
issuers guarantee a narrow spread
between the ask price at which
the bonds can be sold and the bid
price at which the bonds can be
bought.
Leverage Effect
The relationship between debt
and equity in a company’s capital
structure; the return on equity
increases as the debt ratio increases,
as long as the return on total
capital is greater than the interest
to be paid on the debt. The reverse
is also true. If the return on total
capital is lower than the interest
rate on the debt, the return on equity
decreases in direct proportion to
the debt ratio.
Leveraged Buy-out (LBO)
Acquisition of a company by an
investor or group of investors,
chiefly through the use of borrowed
capital (bank loans, bonds, private
equity, asset backed securities).
The debt is serviced primarily from
cash flow or from the sale of assets
belonging to the acquired company.
Leveraged Finance
Form of debt financing whereby
borrowed capital makes up a large
portion, generally 60%–75%, of
the value of the company being
financed. The debt is serviced
from future cash flow; it is secured
and evidenced to the greatest
extent possible such that the lender
is in a better position than is
customary to monitor the borrower’s
performance and take appropriate
measures in the event that the
borrower is performing below
agreed-upon standards.
Management Buy-in (MBI)
Acquisition of a company by new
management, sometimes with the
help of financial investors and
other sources of outside capital.
Management Buy-out (MBO)
Acquisition of a company by its
existing management, sometimes
with the help of financial investors
and other sources of outside
capital.
Market Maker
A bank that provides for constant
equilibrium in certain financial
markets or securities by standing
ready to quote bid and ask prices
for the market/security in question
and make deals at those prices.
Mezzanine Financing
Generally long-term subordinated
financing that can take many
forms.
Mortgage Backed Securities
Securities backed by a pool of
mortgages.
Principal Finance
Special financing technique that
optimises a company’s equity and
liabilities by using both debt and
equity products.
Private Equity
Equity capital invested in all kinds
of privately held enterprises, from
small and medium-sized businesses
to global concerns.
Private Placement
Process of issuing securities and
debt instruments to select private
and institutional investors rather
than as part of a public offering.
181

182
Rating
Classification of countries,
companies and securities according
to their creditworthiness by rating
agencies such as FITCH Ratings,
Moody’s and Standard & Poor’s.
Repo (Repurchase Agreement)
Agreement between a buyer and a
seller whereby the seller promises
to repurchase the asset that is the
subject of the repo at an agreed
upon price and, usually, at an
agreed upon time: e.g. securities
repurchase agreements.
Secondary Market
Sale and purchase of listed shares
by investors, generally on an
established stock exchange.
Spin-off
Special form of management buyout
whereby the management of
a group company or large division
of a company buys a part of the
business that senior management
is no longer interested in and turns
it into an independent company.
Structured Finance
A form of long-term customised
financing essentially geared toward
the future cash flow of an enterprise
or one of its projects. The bank
generally has a comprehensive
system of security in place that
can require the borrower to pledge
shares or assets as collateral, or
involve credit insurance from a
company like Hermes.
Structured Products
Securities that combine aspects
of other product classes into a
new customised product with both
familiar and unusual characteristics.
For example, the security for bonds
can be linked to the performance
of stocks or equity derivatives.
Swap
A financial instrument based on
the exchange of interest payments
in the same currency (interest-rate
swap) or different currencies
(currency swap).
Venture Capital
Also called risk capital; nonpermanent
financing provided to
young, unlisted companies so
they can grow their businesses,
i.e. bring their scientific and
technological innovations to
fruition.

XWa Dedication you can count on.

WestLB AG
Press Department
Herzogstraße 15
40217 Düsseldorf
www.westlb.com
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Photo archives: plainpictures,
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Photograper: Ingo Rappers
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www.westlb.com

XWG
WestLB AG
Herzogstraße 15
40217 Düsseldorf
www.westlb.com