3,1MB - Sal. Oppenheim

Annual Report 1999

Overview of year
THE 1999 FISCAL YEAR
➢ Increase in pre-tax group result by 33.6 %
to 96.3 million æ
➢ Strong contribution to result from all divisions
➢ Rise in the managed and administered assets
by 33 % to 54 billion æ
➢ Successful year for Financial Markets with
35 IPOs and 65 bonds issued
➢ Very strong financial result through concentration
on stock trade
➢ Investment Banking focus on growth industries
and expansion of M&A activities
➢ Expansion of private equity activities through
investments, funds and holding funds
➢ Outsourcing of securities and derivatives
settlement
➢ Retreat from mortgage banking and reduction
of credit operations
Overview of facts and figures ➢

GROUP
BANK
1995 1996 1997 1998 1999
Total assets 15,186 18,006 7,349 8,010 8,628
Risk assets 5,213 8,234 6,985 7,330 7,146
Capital and reserves 623 624 551 578 606
Operating profit 65 53 67 73 97
Net income 31 31 31 44 49
Pre-tax return on equity (%) 10.0 8.3 12.2 12.8 16.3
Capital ratio (%) 13.0 9.6 9.7 9.7 10.4
Cost/income ratio (%) 67.9 71.9 65.3 72.6 68.8
Employees (number) 1,323 1,364 1,094 1,126 1,212
Fitch IBCA Rating Short-term Long-term
F1 A
Figures (million æ)
Financial Overview of Group and Bank
1995 1996 1997 1998 1999
Total assets 5,126 6,593 6,594 6,723 7,248
Risk assets 3,537 4,481 4,431 5,504 4,969
Capital and reserves 545 555 565 585 607
Operating profit 43 46 66 59 75
Net income 17 29 31 40 44
Dividend* (%) 8 9 10 10 11
Pre-tax return on equity (%) 7.1 8.2 11.8 11.1 13.3
Capital ratio (%) 16.5 12.1 13.3 11.3 12.8
Cost/income ratio (%) 64.3 69.2 57.8 71.7 66.6
Employees (number) 698 692 685 698 723
Figures (million æ) *On the subscribed capital increased in 1999 from 200 million DM to 200 million æ.
ORGANIZATIONAL STRUCTURE
Chairman
Divisions
Asset Management
Bierbaum
Portfolio Analysis
Portfolio Management
Logistics
Marketing for Mutual Funds
Marketing Institutionals
Oppenheim Real Estate
Investment Trust
Foreign Business
Service Divisions
Banking
Maret
Graf von Krockow
Investment Banking
Bösel, Maret, Pfundt
Relationship Management
Finance
Oppenheim Investor
M&A
Equity Capital Market
Stockbroking
Currency Trading
Bond Trading
APM/Treasury
Research
Bierbaum
Private Banking
Freiherr von Oppenheim
Freiherr von Rukavina
Customer Groups
Product Management
Foreign Business
Oppenheim Trust Company
Risk Management/Compliance
Freiherr von Oppenheim

1999
Report on the 211th Business Year

Table of Contents
Table of Contents
EXECUTIVE BODIES ................................................. 5
REVIEW BY THE MANAGING PARTNERS ............ 8
ANNUAL REPORT....................................................... 13
Financial Results............................................................. 14
Group .................................................................... 14
Bank ...................................................................... 17
Outlook.................................................................. 19
Operating Divisions ........................................................ 22
Asset Management ................................................ 22
Investment Banking ............................................... 25
Private Banking ..................................................... 28
Service Divisions ............................................................ 32
Bank Services........................................................ 32
Research ................................................................ 34
Risk Management .................................................. 36
Subsidiaries .................................................................... 44
Bank Sal. Oppenheim jr. & Cie. (Schweiz) AG ..... 44
Sal. Oppenheim jr. & Cie. Luxemburg S.A. .......... 46
Human Resources ........................................................... 48
ANNUAL FINANCIAL STATEMENTS ...................... 53
Balance Sheet and Profit and
Loss Account of the Group .................................... 54
Balance Sheet and Profit and
Loss Account of the Bank...................................... 58
Appendix ............................................................... 62
Appropriation of Profit.......................................... 79
Auditor’s Report .................................................... 80
REPORT OF THE SUPERVISORY BOARD.............. 82
ADDRESSES................................................................. 84
SENIOR EXECUTIVES..................... (inside back cover)
3

New York
Cologne
Frankfurt
Hamburg
Munich
Locations
Dublin
Wiesbaden
London
Luxembourg
4
Zurich
Vienna
Hong Kong
Executive Bodies
Executive Bodies
Honorary Chairman Dr. h.c. Harald Kühnen
Supervisory Board Dr. h.c. Alfred Freiherr von Oppenheim
Chairman
Heinz Pferdmenges
Deputy Chairman
Alfred Milenz
Employee Representative
Shareholders’ Committee Baronin Karin von Ullmann
Honorary Chairwoman
Dr. h.c. Alfred Freiherr von Oppenheim
Chairman
Dr. h.c. Harald Kühnen
Will Marx
Friedrich Carl Freiherr von Oppenheim
Nicolaus Freiherr von Oppenheim
Heinz Pferdmenges
Dr. h.c. mult. Karl Otto Pöhl
Dr. Nikolaus Graf Strasoldo
Hans-Ulrich Trippen
Baron Georg von Ullmann
Dr. Clemens Freiherr von Wrede
5

Matthias Graf von Krockow
Chairman
Managing Partners
The Managing Partners
Detlef Bierbaum
Asset Management
Research
6
Hans-Detlef Bösel
Investment Banking
Johannes Maret
Investment Banking
Bank Services
Christopher
Freiherr von Oppenheim
Private Banking
Risk Management/
Compliance
Managing Partners
7
Dieter Pfundt
Investment Banking
Hubertus Freiherr von Rukavina
Private Banking

we look back at a successful business year for
1999. Pre-tax income compared to the previous
year’s figures improved by 33.6% to æ 96.3 million
for the group and by 23.9% to æ 79.4 million for the
bank. As a result, the return on equity climbed from
12.8% in the previous year to 16.3% for the group
and from 11.1% to 13.3% for the bank despite an
increase in equity capital. All operating divisions
contributed to these improved results.
The Asset Management division continued
its positive momentum from previous years and
once again saw an above-average increase in the
amount of assets under management. Thanks to
innovative products and fine performance we were
able to further strengthen our market position,
in particular with regard to mutual funds. With
a volume of æ 21 billion, we are now among the ten
largest asset management corporations in Germany.
The Investment Banking division once again
assisted a series of companies on their path to
IPOs. Our expertise in this business sector, in correlation
with our market position as an independent
private bank, has allowed us to acquire a series
of M&A and consultancy mandates and to step
up activities in this business sector.
Private Banking continued to expand its
business with our private clientele and increased
Review by the Managing Partners
8
the scope of clients’ assets under management and
administration by 54%.
The key to this encouraging performance is
our tailored, comprehensive approach to asset
management, which our clients particularly appreciate.
In this regard, they are benefiting more and
more from interesting capital market products that
have been developed in close cooperation with the
Investment Banking division.
Outsourcing of security and derivative trading
to european.transaction.bank ag, a subsidiary of
Deutsche Bank AG, represents one of the significant
cost-reduction measures we have taken to reinforce
our competitiveness in the long term. Furthermore,
this action has released management capacities for
the expansion of customer-oriented areas.
Concentration on the business areas of
investment banking as well as private and institutional
asset management was another motivation
behind the sell-off of our shareholding in Düsseldorfer
Hypothekenbank AG and additional shares
in Rheinboden Hypothekenbank AG.
An important milestone on the way into the
new millennium was the approval of a growth program
for the business segments Asset Management,
Investment Banking, and Private Banking.
The goal is to continue the successful positive
trend in essential performance indicators such
as the asset and mandate volume that we manage,
the net profit of divisions, and return on equity
through the following strategies:
➢ Asset Management will reinforce its
sales force in the areas of business with the general
public and special fund business through a
series of measures, will push ahead business centered
around pension funds, and will further
increase the attractiveness of its range of offerings
by means of innovative products.
➢ Investment Banking now comprises the
former business divisions Corporate Finance and
Financial Markets. The bank’s venture capital and
private equity activities have been bundled into
a new Oppenheim Investor unit and will be expanded.
The Investment Bank will concentrate on the
expansion of industry competence while focussing
on the TIME growth industries (telecommunications,
IT, media, and entertainment) as well as
biotechnology, high-tech, energy, and the financial
sector.
➢ With its approach of providing demandoriented,
comprehensive support, Private Banking
has all the necessary tools to establish its name
with affluent private clients. We have formed specialized
support teams for specific types of
private clients, with the aim of accommodating
increasingly complex customer demands even
better in the future.
Review by the Managing Partners
9
This strategy is to be realized primarily
through internal growth. In relation to this, we
want to further increase our appeal as an attractive
employer – both for managers and talented junior
employees. In addition to interesting and multifaceted
career perspectives, we offer our employees
an individually tailored training program
and the opportunity to directly participate in the
corporation’s success through a profit-oriented
system of remuneration.
In spite of the high expansion-related need
for investment, we are aiming for an operating
result in the year 2000 on a par with the high level
of the past year. The continuity of relations with
our clients, relations marked by trust, and the
implementation of our newly developed strategic
orientation will enable us to further expand our
leading market position as an independent private
bank and to master the challenges of the new millennium
successfully.
Even though we use the opportunities provided
by the information revolution, our customers
and employees can rest assured that Oppenheim
will continue to be a bank that stands for continuity,
stability, and independence.
On behalf of all the managing partners,

OTP
The bank approved the
Oppenheim Trainee Program,
a program specifically
designed to attract
and develop the brightest
young talent. Intensive
training with instructors
from science and business
rounds out the training.
J ANUARY/FEBRUARY/MARCH J ANUARY/FEBRUARY/MARCH
N EW B RANCH IN H AMBURG
Stefan Paul heads the new branch that was opened in January 1999
in the Colonnades – with a view of the Alster.
C ELEBRATION OF THE O PENING OF THE N EW B RANCH
More than 500 invited guests celebrated the opening on
24 February, including Helmut Schmidt and Alfred Freiherr
von Oppenheim.
T R A I N E E
✯ ✯
OTP
P R O G R A M M ✯
O P P E N H E I M
„...“, “...”, «...»,
T ALK ABOUT A RT
The bank is lending its support to the Hamburger Kunsthalle in its Talk about Art
program of events. Following Jenny Holzer and Dennis Oppenheim, works by artists
including Claes Oldenburg, Jürgen Klauke, and Jeff Wall will be on display.
N EW PARTNER
As of March, Hubertus Freiherr
von Rukavina has been made a
managing partner in the bank and
will be responsible for the Private
Banking division.
10 11
P ROJECT R EAL E STATE F UND, R ESI-
DENTIAL AND B USINESS B UILDING
B REITE S TRASSE G B R
The DuMont-Carré, a real estate project initiated
by the Oppenheim-Esch Group, is being
developed in the heart of downtown Cologne.
O NLINE F INANCIAL A NALYSIS
In a matter of seconds the expert opinions of
our financial analysts are available to all
employees online.

Annual Report
Annual Report
FINANCIAL RESULTS
OPERATING DIVISIONS
SERVICE DIVISIONS
SUBSIDIARIES
HUMAN RESOURCES
13

The group’s operating profit in 1999 was
æ 96.3 million, 33.6% higher than in the previous
year. Compared to 1998, pre-tax income for 1999
increased by 10.7% to æ 48.7 million.
PROFIT AND LOSS STATEMENT
1999 1998 +/–
million æ million æ million æ
Interest surplus 82.5 77.8 4.7
Commission surplus 215.5 183.1 32.4
Net earnings, financial transactions
Other operating
78.2 33.0 45.2
income/expenses, net 7.5 2.4 5.1
Provisions for risk –23.1 –8.4 –14.7
Administrative expenses –264.0 –215.0 –49.0
Operating profit 96.6 72.9 23.7
Net financial assets
Extraordinary income/
0.8 –0.8 1.6
expenses, net –1.1 0.0 –1.1
Pre-tax income 96.3 72.1 24.2
Tax on income and earnings –47.5 –27.8 –19.7
Other taxes –0.1 –0.3 0.2
Net income 48.7 44.0 4.7
Net interest income including income from
shareholdings and affiliated companies increased
by 6.0% to æ 82.5 million.
Net commission income increased disproportionately
by 17.7% to æ 215.5 million. All operating
divisions of the KGaA, the investment com-
Financial Results
Financial Results
for the Group
14
panies, and our subsidiary in Luxembourg contributed
to this result with encouraging rates of
increase.
Net earnings from financial transactions rose
considerably compared to the previous year by
137.8% to æ 78.2 million. This success can be
attributed, in particular, to the fine trading results
achieved by the bank. In addition, net earnings
reflect the liquidation of hidden securities reserves
in the trading division of Sal. Oppenheim (Schweiz)
AG, a step taken to increase provisions for risk on
a group level.
The 22.8% rise in administrative expenses to
æ 264 million was essentially caused by increased
staff levels, bonus payments linked to success
rates, expenses for the Y2K conversion of IT systems,
and costs for further strategic development
of the group.
Expenses for provisions for risk were the
result of a charge for bad debts in connection with
one investment as well as an allocation to the
group’s general provisions for risk. Due especially
to the improved income situation, the cost/income
ratio has been clearly reduced even further, from
72.6% to 68.8%.
Owing to the improved earnings, tax expense
increased to æ 47.6 million.
The group total on the balance sheet
increased by 7.7% over the previous year.
Claims on banks and customers remained
almost steady at the previous year’s level. The refinancing
structure improved in comparison to the
previous year: short-term liabilities to banks and
customers were replaced by long-term deposits
from the issuance of liabilities in certificated form.
Our orientation towards equity business is
documented in the 41.3% increase in the portfolio
of shares over the previous year to æ 1.132 billion.
The value of our portfolio of fixed-interest securities
remained unchanged.
Our withdrawal from the mortgage banking
business was marked by a further partial sell-off
of Rheinboden Hypothekenbank AG, Cologne,
to Allgemeine Hypothekenbank AG, Frankfurt,
as well as the sale of our 25.1% interest in Düsseldorfer
Hypothekenbank AG. The value of new
participating interests nearly matched that of the
shareholdings sold.
The increase in liabilities in certificated form
is the result of the issuance of the bank’s convertible
bonds.
With the conversion to the euro, the subscribed
capital has increased from æ 102 million
Financial Results
15
to æ 200 million from existing capital reserves.
The capital ratio in accordance with Principle I
climbed to 10.4%, an improvement of 0.7% over
the previous year.
BALANCE SHEET
1999 1998 +/–
million æ million æ million æ
Cash reserves 68 26 42
Claims on banks 2,006 1,744 262
Claims on customers 2,402 2,590 –188
Fixed-interest securities 1,676 1,669 7
Stock and investment shares 1,132 801 331
Participating interests 146 154 –8
Other 1,198 1,026 172
Assets 8,628 8,010 618
Liabilities to banks 402 646 –244
Liabilities to customers 4,942 5,056 –114
Liabilities in certificated form 1,220 476 744
Equity 628 599 29
Other 1,436 1,233 203
Liabilities8,628 8,010 618
Total customer assets under the management
and administration of the Oppenheim Group
jumped once again. The figure increased sharply
by 33% over the previous year, reaching a level of
æ 54 billion.
All the operating divisions, capital investment
companies, and our subsidiaries in Luxem-

ourg and Switzerland contributed to this success.
It is an expression of the high level of confidence
that all our customers have in our expertise in asset
ADMINISTRATED
AND MANAGED ASSETS
60
50
40
30
20
10
0
billion æ
95 96 97 98 99
management. The value of customer assets administered
and managed in funds grew compared to the
previous year by 24% to æ 21 billion.
Financial Results
16
In the bank, a sharp increase in the pre-tax
operating profit of 23.9% to æ 79.4 million was
achieved.
Net interest income including the income
from participating interests increased by 6.2% to
æ 100.8 million. Commission and fee-earning
business continues to represent the bank’s
strongest source of income. Net commission
income grew by 14.1% to æ 120.9 million. Activities
revolving around stockbroking and consulting
were particularly successful.
The results for own-account trading were
considerably higher than in the previous year,
with a substantially reduced risk level. At æ 58.2
million, net earnings from financial transactions
quadrupled compared to their previous year’s
level. This success was bolstered primarily by the
trading of stocks. The bank also established additional
valuation reserves.
Provisions for risk amounted to æ 19.3 million.
This represents an increase which can be
attributed primarily to the writedown of a credit
commitment as well as the transfer to taxed
reserves in compliance with Section 340f of the
German Commercial Code.
Administrative expenses rose by 22.8%.
This increase is mainly due to a rise in staffing
Financial Results
Financial Results
for the Bank
17
costs. The number of employees increased by 25
to 723. Furthermore, success-related bonus payments
were also raised in correlation with
improved annual earnings. The increase in oper-
PROFIT AND LOSS STATEMENT
1999 1998 +/–
million æ million æ million æ
Interest surplus 100.8 94.9 5.9
Commission surplus 120.9 105.9 15.0
Net earnings, financial transactions
Other operating
58.2 11.7 46.5
income/expenses, net 1.4 0.2 1.2
Provisions for risk –19.3 –0.9 –18.4
Administrative expenses –187.4 –152.5 –34.9
Operating profit 74.6 59.3 15.3
Net financial assets
Extraordinary income/
5.9 4.8 1.1
expenses, net –1.1 0.0 –1.1
Pre-tax income 79.4 64.1 15.3
Tax on income and earnings –35.3 –23.5 –11.8
Other taxes –0.1 –0.2 0.1
Net income 44.0 40.4 3.6
ating costs can be attributed to expenses for outsourcing
our securities and derivative settlement
as well as increased IT expenses.
The cost/income ratio fell from 71.7% to
66.6%. The net balance from financial assets is
mainly the result of the earnings from the sell-off
of shares in the mortgage bank business.

BALANCE SHEET
Total assets increased by 7.8% to æ 7,248 billion
while also improving structurally. Claims on banks
and customers changed just slightly in comparison
to the previous year’s figures.
1999 1998 +/–
million æ million æ million æ
Cash reserves 51 19 32
Claims on banks 1,522 1,363 159
Claims on customers 2,725 2,981 –256
Fixed-interest securities 1,595 1,495 100
Stock and investment shares 664 306 358
Participating interests 244 236 8
Other 447 323 124
Assets 7,248 6,723 525
Liabilities to banks 325 611 –286
Liabilities to customers 4,391 4,480 –89
Liabilities in certificated form 1,220 476 744
Equity 629 605 24
Other 683 551 132
Liabilities7,248 6,723 525
The great significance of equity business is
reflected by a strong increase in our share portfolio.
Due to the addition of new participating interests,
the volume of participating interests remained
steady in spite of the sell-off of shares in the mortgage
banks. At the same time the subscribed capital
of several subsidiaries was increased.
Financial Results
18
On the liability side, shorter-term liabilities
to banks were consistently reduced by æ 286 million
to a minimum level in favor of longer term
refinancing through bank-issued bonds. With a
volume of æ 4,391 billion, customer deposits
remained at about the same level as in the previous
year, again contributing considerably to the
refinancing of the bank and a strengthening of
customer loyalty. The 156.3% increase in liabilities
in certificated form resulted from the issuing
of convertible bonds, which were well received by
the market. The other asset and liability items consist
mainly of received and paid option premiums.
Subscribed capital was increased from æ 102
million to æ 200 million by making use of capital
reserves. Revenue reserves were strengthened
by a transfer of æ 22 million from net income.
In accordance with Principle I, the capital ratio
at the end of the year was 12.8%. Stockholders’
equity consists almost entirely of core capital.
The future success of the bank will depend
on the pointed and brisk implementation of our
clearly focussed strategy. With our business divisions
Asset Management, Investment Banking,
and Private Banking, we are oriented towards very
attractive growth markets. We want to increase our
market shares in these areas, while fully utilizing
the synergy potential between and among divisions
– also in our clients’ interest. Business will
be expanded with a steadfast, careful, and conservative
plan for maintaining control of market,
credit, and other risks.
The outsourcing of securities and derivative
settlement represents the greatest challenge in
banking. According to our plans, the corresponding
processes will be completely converted by the
middle of the year. Also of significance is the further
development of our IT systems, especially to
support customer consulting.
Based on the strategic significance of the
financial analysis, research will be expanded substantially
as a competence center for the entire
bank. Despite the considerable investments
required in this regard, we are confident that we
will be able to maintain the excellent operating
result attained in the year under review. After completion
of the investment phase in 2000 and 2001,
we project that our strategy will lead to a further
increase in profits and return on investments.
Financial Results
Outlook
19
To achieve the desired development and limitation
of risk, we are taking extensive measures,
especially in project controlling, project organization,
and personnel recruiting.
We will be supported in this by the revival
of global growth. Aside from the persistently
robust U.S. economy, there is also a positive outlook
for the euro zone and the countries in transition.
Despite these positive overall conditions, we
cannot fully exclude the possibility that setbacks
in stock markets could still affect the planned
results.
As before, our undivided attention will be
devoted to changing demand for financial services.
In doing so we will resolutely utilize the
opportunities opening up to us and our clients
as a result of the current rapid transition to an
information society.

➣
M AX F REIHERR VON O PPENHEIM –
D ISCOVERY OF T ELL H ALAF
100 years ago, Max Freiherr von Oppenheim (1860–1946) discovered
antique stone sculptures at Tell Halaf – impetus for a biography that will
appear at the end of 2000. Finds from the excavation are now located in the
Pergamon Museum in Berlin and in the National Museum in Aleppo, Syria.
A PRIL/MAY/JUNE A PRIL/MAY/JUNE
65TH BIRTHDAY
Alfred Freiherr von Oppenheim celebrated his 65th birthday
on May 5, 1999 (with over 400 employees attending a
reception in the Maternushaus in Cologne to celebrate the
occasion). His son, Christopher Freiherr von Oppenheim,
was elected to the group of managing partners in the
spring of 1999 and represents the seventh generation of
the founding family.
O PPENHEIM
EURO STOXX 50
With a jump in value of
47.2%, the index fund left
most of the Eurozone share
funds trailing behind in
1999. The fund volume
rose in this period from
æ 252 million to over æ 690
million.
➢
KTM AG, GOING P RIVATE
With the support of the bank, the European market
leader in the offroad motorcycle segment carried out
a repurchase of KTM shares by management and a
private equity fund.
20 21
C ONTRACT S IGNED
On 29 June 1999 the bank signed an agreement with the
european.transaction.bank ag (e.t.b), whose services in the
area of securities and derivative settlement the bank will
use in order to remain competitive in the future.
N OVAMEDIA F ILM F UND
Oppenheim successfully placed
a third production company,
Novamedia GmbH & Co. Osiris
KG (volume æ 50.3 million).
Novamedia Osiris has produced
a total of 34 TV films and
series.

Strategic position
The Asset Management division is at a favorable
starting point for bolstering its market position
through the expansion of our company’s productrelated
strengths, the employment of new sales
channels to expand our clientele, and cooperative
partnerships to utilize the full capacity of the production
platform.
As for funds open to the general public, we
want to gain more sales partners in the Germanspeaking
countries, Italy, France and the Netherlands
by employing the Oppenheim brand and
through the fine performance of the funds.
In institutional asset management, we will
strengthen individual support for clients by expanding
our support team and setting up acquisition
teams to provide even greater regional coverage for
our clientele.
We will be using our company’s market position
in investment banking to heighten the share of
innovative special products in our funds business.
As for the field of real estate, we want to continue
expanding our position as a market leader for
special institutional funds.
As a result of these measures, we expect that
by the year 2004 our assets under management will
Operating Divisions
Asset Management
22
double to around æ 40 billion, while the volume of
our activities with mutual funds will triple.
Performance
The Asset Management division’s operating
result increased substantially compared to the previous
year, and reached a new high. We managed
to keep the cost/income ratio at the same favorable
level as in the previous year, in spite of major
investments in human resources and technology
aimed at expanding business.
The Asset Management division accounted
for a disproportionate share of the upturn in the
funds sector in the first year of the European monetary
union. The goals we set for ourselves were
surpassed by far, especially in the area of mutual
funds. Our broader range of products was well
received by established customers and in our
expansion of sales and distribution channels.
The shift in focus to investment in equities
demonstrates that the transition to the Eurozone
home market has been a success. At the end of 1997,
80% of our European stock investments were
concentrated on Germany. Now the ratio is the
other way around. The net supply of funds for
the division underscores this growth trend at
æ 1,138 million. It can be attributed primarily to
the excellent rate of sales for funds open to the general
public. For the first time ever, a total of more
than æ 1 billion of fresh investment capital was
placed in their care. This figure represents an
increase over the net supply of funds from the previous
year (æ 805 million) by about one-fourth.
Particular success in sales was registered in
cooperation with other banks and asset management
organizations, which took advantage of
Oppenheim’s investment know-how for themselves
and their clients.
The overall total of assets under management
rose by 24% over the previous year to æ 21 billion.
Therefore, in spite of the extraordinary deduction
of other special funds in the course of our business
separation from the AXA-Colonia Group, longerterm
growth of 20% p.a. was exceeded by far.
In our special funds business, at the end of 1999
we managed æ 15.5 billion (1998: æ 13.4 billion).
Mutual funds rose to æ 5.4 billion (1998: æ 3.5
billion).
Oppenheim Immobilien-Kapitalanlagegesellschaft
mbH, Wiesbaden, in which the Bankhaus
has a majority interest, increased its assets under
management by more than 90% to æ 2.9 billion.
With a record six newly launched special real estate
funds, it expanded its position as a national market
leader in this increasingly important segment. In
European countries excluding Germany, the company
acquired 54 properties, more than any other
Operating Divisions
23
German real estate fund company. Its commitment
to international business has been underscored by
the opening of new branch offices in Madrid and
Milan.
FUNDS VOLUME ASSET MANAGEMENT
25
20
15
10
5
0
Special Funds
billion æ
95 96 97 98 99
Mutual Funds
Successful products and new initiatives
Europe as an investment region also played
a premier role in the trends for mutual funds.
Oppenheim Euro Stoxx 50 securities developed
into the largest mutual funds in the group with
a recent volume of more than æ 690 million.
With the launch of Oppenheim S&P 500
securities and Oppenheim Nikkei 225 securities,
the funds family now comprises indexed stocks
from all major stock markets. An international
industry fund for technology securities and growthoriented
securities from the “New Markets” were

added to the theme-oriented funds family “Aktien
Topic.” In addition, we launched “Oppenheim Neue
Märkte” as an actively managed exclusive product
for the bank’s private clients. All of the new funds
mentioned turned out to be extraordinarily successful
thanks to the good timing of their launch
and their performance. Towards the end of 1999,
we began preparations for another theme-oriented
fund devoted to an investment strategy of sustainability.
The pension issue has been driving the
growth in the funds business. Our concepts are
based on the observation that optimization of individual
stock weightings over the long term in a life
cycle is decisive for the success of an investment
strategy. The age of the investor and other aspects
of their living situation are also taken into account
in the innovative Oppenheim PILOT Pension
Strategy. Each year, this investment program automatically
adjusts the composition of the client’s
portfolio. In 1999, PILOT experienced a successful
market launch in cooperation with other banks
outside the group.
Further products in this market segment
include holding funds, which we launched in 1999
as one of the first suppliers under German law. Following
the passage of the Third Law for the Promotion
of Financial Markets, we managed to accentuate
our objectivity and customer orientation
Operating Divisions
24
through targeted selection of funds beyond the
bounds of individual companies as well as through
the inclusion of non-group products.
Employee funds represent another pillar of
this business. These funds are offered at favorable
conditions in mutual cooperation with reputable
companies for their own staff members.
Outlook
We have entered the year 2000 with high
expectations, especially for pension funds. Two
other factors which will be driving our business
over the long term are deregulation and technical
progress, which have given rise to a new culture of
equity investment in Europe. This development
gives us the opportunity to expand our product
range, translating sustained progress in the investment
process into increased growth for our business.
Strategic position
The former divisions of Corporate Finance
and Financial Markets were consolidated into the
Investment Banking division at the end of 1999
with an even tighter strategic orientation under the
joint leadership of three partners. In addition, the
bank’s venture capital and private equity activities
were bundled into a new Oppenheim Investor unit.
We are pushing ahead with the expansion of this
unit together with the existing M&A and IPO business,
which is an established success.
In the former Financial Markets division, the
foundation for the future was already laid in the
summer of last year. Trade in bonds and foreign
currency has been cut drastically, while equity business
has been expanded. Equity investment consulting
as well as issuing of equity derivatives are
at the forefront of this trend. Our intention is to
expand corporate bond business, provided that the
corporate finance business provides a good basis for
this. As before, target customers are medium-sized
and large companies as well as institutional
investors. The bank offers these customers an industry-oriented
range of investment products covering
the entire output chain.
By consolidating these formerly separate
divisions, it has been possible to dismantle hierarchies
and introduce a more product-and-industry
oriented organizational structure. This allows us to
Operating Divisions
Investment Banking
25
attain the flexibility and speed necessary in investment
banking, to tap into synergy potential in the
creation of products and provision of customer
support, and to release our employees’ creative
potential.
Through this orientation, the Bankhaus is
responding to the strong growth potential of German
and European investment banking and creating
the basis for further expansion of its market
position.
Performance
The former divisions of Corporate Finance
and Financial Markets, previously treated as separate
profit centers, can look back on a successful
fiscal year. In the case of Corporate Finance, revenues
once again exceeded the very good results
from the previous year. The Financial Markets division
registered a sharp increase in earning power.
Special mention must be made of the fact that
the Financial Markets division managed to achieve
outstanding results while cutting market risk in half.
The measures introduced at the beginning of the
year, consisting essentially of a concentration on
stockbroking activities and foreign currency consulting,
had their intended effect.
The trade of stocks and stock derivatives registered
a particularly encouraging increase in

earnings, creating a sound basis for future positioning
in the newly expanded Investment Banking
division. The share of profits contributed by trade
in foreign currency stabilized at a very high level.
This development is particularly encouraging in the
context of the introduction of the euro.
In Corporate Finance, the share of commissions
in earnings increased due to the considerable
progress made in expanding investment bank business.
In spite of a declining credit volume, interest
income remained nearly constant. The operating
result also remained at the same level as the previous
year, despite increased provision for risk.
Successful products and new initiatives
New issue business developed positively. For
example, we lead-managed nine companies in their
bid to go public and participated in another 26 IPOs.
Media and technology companies were one of the
focusses of our new issue activities.
Furthermore, the Bankhaus was increasingly
active in various reallocations and in block trading.
A considerable share of blocks of stocks were
placed with foreign institutional investors, due in no
small part to the work of our highly successful subsidiary
in London.
In addition, business involving the issuing of
loans was quite vigorous. Including bearer bonds,
Operating Divisions
26
we entered a total of 65 titles on the market, with a
special highlight on Oppenheim convertible bonds.
That puts us among the market leaders in this segment
in Germany. Activity in subscription warrants
and stock discount certificates was increased at the
end of the business year.
The trend in business with participating
interests was once again dynamic. We were able to
substantially increase the number of concluded
transactions. This business with participating interests
included holdings in a very wide range of
companies – in the interest both of and with our
clients – as well as venture capital and shareholdings
in young companies, which we want
to lead-manage for their later IPOs.
In the field of M&A, we again managed to
acquire a great number of interesting mandates
among clients in German industry. As for special
products, we participated as a main sponsor for the
first time in the establishment of the Triton private
equity fund and placed a major share of the æ 300
million stockholders’ equity with our institutional
clientele.
Furthermore, we developed and placed
another Novamedia film fund.
Outlook
In the future, we plan to focus our investment
banking activities more clearly and to concentrate
on the following points:
➢ Concentration of equity business with an
innovative equity product spectrum that meets the
needs of the market.
➢ Expansion of our industry and research
expertise with a focus on the growth industries
TIME, biotech, and high-tech, as well as the energy
and financial sector.
➢ Reduction of our credit business coupled
with rapid expansion of our business with participating
interests and private equity business in
our core industries in our own interest and in the
interest of our customers.
➢ Moderate internationalization of our
investment banking activities in line with our
strategy.
➢ Upgrading our employee status to create
a highly professional investment banking team
through training and recruiting initiatives.
Operating Divisions
27

Strategic position
Positive stock market trends, ongoing generational
transition of wealth, plus a large number
of corporate sell-offs and IPOs, have led in recent
years to strong growth in privately owned assets.
The demands of our customers regarding investment
advice and asset management are becoming
increasingly complex. Furthermore, technological
developments and the increased use of new media
provide many different ways of fulfilling these
requirements.
Today, managers, self-employed professionals,
owners of major family fortunes, and
private clients have very different needs. That is
why Oppenheim serves them through specialized
advisory teams. For example, together with the
Investment Banking division, they support owners
of medium-sized businesses in all matters pertaining
to generational transition, capital marketrelated
measures, and the administration of the
monetary wealth so created. For the founders
of young technology companies, they develop
strategic concepts for asset diversification.
All our customers benefit from the competency
of the Bankhaus in the areas of investment
banking and asset management. Our experience
with IPO’s or in restructuring large industrial assets,
our creativity in derivative products, our extensive
research, and our many years of successful
Operating Divisions
Private Banking
28
management of large institutional assets help us
in providing advisory services for private wealth.
This philosophy is expressed in pure form in
our “family office”, Oppenheim Vermögenstreuhand
GmbH, which provides comprehensive management
of large, complex asset portfolios. In addition
to the basic tasks of reporting and controlling,
this experienced and expert group of asset managers
also handles the implementation of strategic
tasks, tax optimization of assets, and planning
of global asset allocation for all forms of investments.
A central focus of the activities of this company
is management and control of third-party asset
managers on the basis of objective criteria.
Performance
The positive environment provided by the
stock markets and successful customer acquisitions
led to a highly satisfactory level of performance in
1999. The total managed assets stemming from private
customers increased considerably. Consequently,
the level of commissions also experienced
a clear increase. In addition, activity with interestbearing
instruments and proceeds from placement
operations continued to develop positively. The
jump in the volume of assets managed by Oppenheim
Vermögenstreuhand GmbH is particularly
noteworthy.
In the area of special products we were for the
first time the main sponsor for the newly founded
private equity fund Triton, which was well received
by institutions and private customers alike.
In addition, among other things we conceived
and placed an attractive fund investment,
the Novamedia film fund, with a volume of æ 50.3
million for our private customers.
Management and placement of closed real
estate funds continued to be successful. Thus the
companies included in the Oppenheim-Esch
holding company, who are mainly in charge of
real estate development, are all showing a positive
trend.
Outlook
In a phase of restructuring for the entire banking
business, which results in substantial insecurity
for customers and employees, our independent
and continuous service and advice will continue to
be of particular value to existing and new customers
in the future. Particularly the independent banks
will profit from the realignment of large European
competitors. Our justifiable hope that we will win
a large portion of this fast-growing market in private
banking is based on the following factors:
∑➢ The expansion strategy with special consulting
teams for individual customer requirements
Operating Divisions
29
will bear first fruits in the year 2000. We will also
extend our geographic reach, among other things
through Europe-wide expansion of Oppenheim Vermögenstreuhand
GmbH.
∑➢ Continued favorable stock markets and
lively issuing activities will lead to increased asset
formation. In the M&A and IPO business, the
successful business dealings of the first few months
of the year support our high expectations for this
market.
∑➢ Our newly restructured research area
will provide all areas of the bank with in-depth
industry know-how in the industrial sectors well
known to us and will also expand our product
knowledge in important new areas.
Overall in the coming years we expect this
accelerated expansion of our activities in investment
banking (especially in the private equity area)
to provide interesting new opportunities that can
be of great value to our private customers.

FLUXX. COM IPO
The communications company fluxx.com, which is active
in the e-commerce field, went public in September.
The Bankhaus acted as lead manager. Fluxx.com AG
also runs jaxx.de, the market leader in Internet gaming.
J ULY/AUGUST/SEPTEMBER J ULY/AUGUST/SEPTEMBER
A RTWORKS
The objet d’art Ptolémaus II (1958) was put on display in the banking
hall in August 1999. Made from Carrara marble, the sculpture was
created by the artist Jean Arp (1886–1966). Some of his other works
are also being shown at the bank.
The Bankhaus investments in art are part of a long-term concept that
is being implemented by the company TransArt Kunstberatung GmbH,
Cologne.
WEB.DE
The Bankhaus acted as lead investor in a pre-IPO round of
financing for the fastest growing Internet portal in Germany.
In the spring of 2000 the company was successfully launched
on the Neue Markt.
S ELF T RADE
The bank is investing in the future-oriented market
of Internet banking and is increasing its investment
in Self Trade, the second largest online broker in
France, which went public on the stock exchange
in Paris in March 2000.
O PPENHEIM CONVERTIBLE BOND
In 1999 our bank issued a total of 48 convertible
bonds and 17 for well-known financial institutes.
We are thus among the market leaders in this segment
in Germany.
W EDECO
30 31
Oppenheim acted as lead manager for the Wedeco IPO. Wedeco is the
world’s market leader in the area of water disinfection. State-of-the-art
technology and an environmentally friendly process – with UV light –
point to a high growth potential.
11%Aktienanleihe

Strategic position
The main function of Bank Services is to
support settlement of transactions, to maintain
state-of-the-art information technology systems,
to minimize typical, operative bank risks, and to
provide management with up-to-date information
for objective planning.
The most important consideration for Bank
Services is its ability to adapt to the specific needs
of its clients while maintaining high-quality service
and competitive cost structures.
Bankhaus Oppenheim considers the effective
use of information technology to be an important
factor in ensuring competitiveness; a factor
that can be used to support the core competencies:
asset management and investment banking.
Costs
Administrative expenses for the Bank
Services division rose compared to the previous
year as a result of slightly higher costs for data
processing connected mainly to the Y2K issue.
In spite of the increased volume of transactions,
the direct costs of the account settlement and
staff departments showed just a moderate
increase in 1999, comparable in magnitude to
past years thanks to comprehensive technological
support and continuous process improvements.
Service Divisions
Bank Services
32
Infrastructure
Last year’s main IT project, to ensure Y2K
compatibility throughout the entire bank, was
completed according to schedule in September.
A significant measure to achieve cost reduction
was the outsourcing of securities and derivatives
settlement to european.transaction.bank ag.
Also in the interest of our customers, we are
one of the first German banks to take this step.
During our studies, and in the contracts concluded
in November, we paid very special attention to the
issue of confidentiality, which is the basis of our
entire business and, in the end, a guarantee for our
independence.
In the economies of scale which we can
achieve together with our trading partners, we will
be able to offer our consulting services at competitive
prices at all times.
With the support of external consultants, we
started a project in 1998 aimed at the sustainable
reduction of the system diversity that is driving up
costs in the trading areas of the bank. In relation
to this project, the entire process chain including
trading, internal processing, risk surveillance,
settlement of accounts, and controlling was to
be optimized and consolidated on the most uniform
platform possible. However, due to the
complexity of the products, systems and processes,
the global concept will not be completely
implemented until some time in the next three
years.
Outlook
We will be implementing and consistently
optimizing the outsourcing plan of the mentioned
processing areas within the course of this business
year.
A high priority will be to integrate into the
bank’s system environment the software already
being used successfully in some areas to support
private banking activities. This includes systems
for portfolio management and financial life planning
as well as for the expansion of Oppenheim’s
Internet presence.
Since IT represents a strategic success factor,
we will need to continue making substantial
investments in this sector.
Service Divisions
33

Research
Investment process
Fund products
ASSET
MANAGEMENT
Bankhaus Oppenheim has ambitious growth
objectives. To reach these objectives, we must concentrate
all our efforts on the three lines of business
dealing with asset management for private
PRIVATE
BANKING
• Research
competence center
• Bank Services
• Risk Management
Research Trading
Placement
Product
structure
INVESTMENT
BANKING
customers, asset management for institutional
investors, and investment banking. The strategic
importance of research has been underscored by
the adoption of a centralized structure to make it
accessible to all divisions. In addition, further
expansion of research activities has also been initiated.
Through consolidation into a competence
center, we can take advantage of synergies and
guarantee customer-oriented research. The three
main areas of research are macroeconomic analysis,
investment analysis, and primary analysis of
stocks and investments. They guarantee optimal
support of the bank’s operating divisions through
Service Divisions
Research
34
a uniform structure as well as the use of common
databases and analysis tools.
Research is used to develop the bases for a
homogeneous company view of all issues relevant
to capital markets. It is integrated into teams, which
prepare investment decisions in a multi-layered,
transparent, and consistent process. Aside from
many other examples, this applies in particular to
interest rate forecasts for Eurozone, which are key
to making a core investment decision.
In the field of macroeconomic research, two
different departments analyse international,
macroeconomic trends and draw up appropriate
prognoses. The focus lies in the examination of
implications for capital markets in Europe, where
Germany naturally plays a central role. However,
countries in Eastern Central Europe, which will
be the next countries to join the European Union
and monetary union, deserve more and more
attention.
The research area dealing with primary
analysis of stocks is oriented towards original and
in-depth analysis of German stocks and is being
reinforced on a continuous basis. The content of
this research covers all market segments so that
major international corporations, small to medium-sized
companies, Internet and technology
stocks, and IPOs can be taken into account and
evaluated. This research area also provides a consolidated
analysis for a market strategy in Germany,
including sector allocations.
The research area dealing with investment
analysis is still being set up and will soon benefit
from substantial additions to its personnel. It will
be evaluating stocks from all over Europe in light
of the well advanced, but not yet accomplished,
international diversification of security portfolios.
The concept calls for a systematic assessment
procedure for “analyzing the analysts,” i.e. to identify
the best analysts at other banks in the market
and to integrate their estimations and projections
into a fundamental assessment analysis.
This process will be linked with sound
assessment methods of the latest analysis techniques
for financial markets. With a focus on
Euroland, we are currently analyzing approx.
1,800 corporate bonds and cover such bond segments
as asset-backed securities and CMOs, as
well as mortgage bond jumbos and participation
certificates.
All operating divisions in the Bankhaus are
benefiting from the constantly growing base of
research expertise, which is also made fully available
to our clients.
Service Divisions
35

Objectives
The objectives of risk management are to
measure and manage market, credit, and liquidity
risks and to minimize operative and legal risks.
These tasks are performed by the areas of Risk
Controlling and Credit Risk Management. They
are organized and function separately from the
operating divisions responsible for the risk-related
transactions, and were under the management of
the partner in charge of Bank Services in the 1999
fiscal year.
Through active management, risk-related
items are limited in such a way that the possible
losses do not exceed a pre-defined, tolerable risk
potential. Furthermore, the risk profile is actively
developed in correspondence with the business
strategy, so that the only risks taken, in type and
scope, are those which are projected to offer an
appropriate return. Operative risks are minimized
through suitable organizational measures, and
legal risks through the careful design of contracts.
Market risks
To limit market risk, the managing partners
have designated limits for all private trading activities
within the scope of the existing limit concept
with regard to the capital and the sustainable earning
power of the bank. Risk Controlling, which
acts independently of trading activities, monitors
compliance with these limit specifications on a
Service Divisions
Risk Management
36
daily basis and reports its findings to managing
executives. The limit allocations for the areas of
equities, foreign exchange, and interest and the
effectiveness of risk parameters as well as the
methodical fundamentals of risk measurement are
checked constantly both internally and externally
and adjusted to changed conditions and the latest
information if necessary. Risk Controlling also
develops its own theoretical concepts and specific
methods in this regard.
The Risk Controlling division determines and
monitors market risks using the value-at-risk method
(VaR). Furthermore, stop-loss limits are a dynamic
means of securing profits and are also used in
limiting losses and in protecting the earned gains,
thereby reducing volatility of the trading results.
The value-at-risk figures used are constantly
reviewed for accuracy through backtesting at the
pan-corporate bank level and for each trading area.
The findings of backtesting serve as confirmation
of the employed calculation procedures. Stress
tests are carried out on a regular basis to assess the
economic effects of extreme market movements
on the trading portfolio. This testing involves the
postulation of particularly unfavorable market
scenarios beyond the limits of the value-at-risk
figures which, as experience has shown, are actually
“rather improbable” and the calculation of
their effect on the portfolio value.
The group’s value-at-risk figure is based on
the parameters recommended by the Bank for
International Settlement: holding period 10 days,
confidence interval 99%, historical period under
review one year.
The group’s value-at-risk total was reduced
by approx. 60% to æ 15 million compared to the
previous year, which corresponds to the amount of
reduction in the risk limits. The drop in equity
GROUP VALUE-AT-RISK
AS OF DECEMBER 31, 1999
1999 1998
million æ million æ
Interest rate contracts 4.0 5.7
Exchange rate contracts 0.5 1.3
Equity/Index contracts 10.5 29.8
Total 15.0 36.8
exposure was attained in particular through more
intense hedging of subscription warrants through
the issuance of convertible bonds. There was also
a more intense focus on customer transactions.
Credit risks
Credit risks can occur when there is a drop
in the value of loans, securities, or derivatives due
to the failure of a client or to the deterioration of
Service Divisions
37
a client’s credit standing. The risk analysis takes
into account both the bank’s overall commitment
per individual borrower or corporate group and
the composite of particular industry and country
risks, as well as the analysis of the overall credit
portfolio.
To provide an objective basis for decisions
on lines of credit, the credit risk management
department assigns an internal credit rating to each
and every corporate and private client. The credit
rating of banks and insurance companies is based
on public rating figures. Banks without a public
rating receive an internal rating based on the comparison
of key figures and qualitative considerations.
The risk classification of corporate clients
is determined on the basis of quantitative data
(figures from the annual report) and qualitative
data (industry, company features, accounting
policy on financial statements).
The credit standing of private clients is classified
using a suitable asset analysis method or, in
the case of Lombard loans, using an assessment of
the pledged securities as well as the client’s other
non-pledged assets.
The risk structure for the overall portfolio
shows a high share of exposure in the investment-

grade category (corresponding to an S&P rating
of BBB or better). The credit risk from exposure
in the non-investment-grade category was appropriately
taken into account through reserve allocations.
The credit risk for derivatives is measured
according to the repurchase value plus a product-related
premium which takes into account
the potential risk from changes in cash transactions,
interest rates and volatility over a remaining
term.
The distribution of the derivative portfolio
across ratings corresponding to the risk classes
employed by S&P shows that the business is
Service Divisions
CREDIT RISK AS OF DECEMBER 31, 1999 ACCORDING TO CLASSES OF CREDIT STANDING
Cash debts,
Securities portfolios,
repos, reverse
S&P rating bills of exchange repos and loans
equivalent and guaranties on securities OTC derivatives Total %
in million æ in million æ in million æ in million æ
AAA 240 264 355 859 9.7 %
AA 781 725 1,052 2,558 28.9 %
A1,726 1,014 1,076 3,816 43.1 %
BBB 902 94 107 1,103 12.5 %
Non-investment grade 461 2 3 466 5.3 %
Other 15 34 0 49 0.5 %
Total 4,125 2,133 2,593 8,851 100.0 %
38
clearly concentrated on counterparties with investment-grade
ratings.
The credit risk for derivatives is further
reduced by concluding netting agreements, break
clauses, and agreements on the provision of security.
The bank’s overall portfolio structure for
loans and derivatives is heterogeneous and does
not display any significant concentration in one
industry in Investment Banking. Furthermore,
there were no major commitments as of December
31, 1999 that would have resulted in a concentration
of assets, liabilities or off balance sheet
positions. Please refer to the Appendix on page 76
for figures pertaining to liabilities by country and
the range of the borrowers’ industries. Appropriately
adjusted figures were used to account for all
identifiable credit risks and value impairment
from commitments in these countries.
Operative and legal risks
Operating risks can occur in any division of
the bank, for example, from technical failures,
human errors, or inadequate controls. These risks
are countered through intensive staff training,
detailed working instructions, and regular checks
as well as security measures for the data processing
system.
To guard against legal risks, which generally
arise as a result of non-enforceable claims, all legal
provisions and the legal capacity and contractual
ability of the counterparty are closely scrutinized.
Standard contracts are used wherever possible.
Liquidity risks
The bank’s liquidity is monitored and actively
controlled by the asset/liability management
department. This department also ensures compliance
with the bank's liquidity principles and
regulations for minimum reserves. Traditional
monetary transactions are the main instrument for
control. The bank’s substantial Lombard deposits
at the Deutsche Bundesbank form an additional
source of reserves for liquidity.
Service Divisions
39
Liquidity risks from medium- to long-term
securities are controlled by means of a proper
balance sheet management. The liquidity risk
associated with a particular product is implicitly
controlled in conjunction with the monitoring of
market risks.
The euro
The conversion of accounting systems to the
euro on January 1, 1999 went smoothly in all of the
bank’s operating divisions. Customer transactions
can now be conducted in either DM or euro.
Y2K
Thanks to early and comprehensive adaptation
of all of the bank’s systems within the scope
of a pan-corporate project, Oppenheim was well
prepared for the transition to the year 2000. All
business operations continued as usual at the beginning
of the new calendar year without any hitches.
Compliance
Within the course of progressive globalization
of markets, internationally recognized standards
for protecting customers have been realized to a
broader degree. For instance, the German Securities
Trading Act standardized rules of conduct for
providing service in connection with securities,
and for the first time treated insider activity
as a criminal offense.

In addition, the German Federal Securities
Supervisory Office instituted a compliance guideline
in 1999 requiring banks to guarantee they have
organizational and operational structures, which
correspond to their structure and business activities.
Banks are also required to continuously
monitor their services involving securities to
ensure proper performance.
The Compliance department – whose staff
has been increased – is in charge of ensuring that
these comprehensive legal and supervisory
requirements are met to avoid conflicts of interest
between the bank, employees, and customers. To
check compliance with these specifications and
perform detailed individual analyses, the bank has
an IT application based on the compliance concept.
This application is used to ensure that the bank
is acting exclusively in the interests of its clients.
Internal Audit
The Internal Auditing department as a part
of the risk management system works as an independent
entity on behalf of the partnership. It is
managed by the partner responsible for Banking
Services and works in accordance with the audit
guidelines, which deal particularly with goals,
tasks, and authorities.
Internal Auditing serves a central function in
early detection of risks. Their reports provide a
Service Divisions
40
special classification of material risks based on
audit findings. Other major functions include
assessment of the purposefulness of procedures,
effectiveness of internal control systems, and
the security and functionality of the IT systems
in use.
Auditing works on the basis of a multi-year
audit plan approved by Management, in which the
essential audit areas specified in the “minimum
requirements for trading businesses and credit
institutes” are audited at least once yearly.
Summary
The risks for the group and the bank are
recorded thoroughly, measured using consistent
methods, and are monitored and controlled in a
timely manner. The following items are of particular
importance in assessing the risk position:
➢ The value-at-risk limits were reduced in
two steps by approx. 50% compared to the previous
year. The reduced limits were only utilized
to 35% at the end of the year.
➢ Backtesting confirms the quality of the
risk measurement methods.
➢ Investment-grade loans (corresponding
to an S&P rating of “BBB” or better) represent
94.2% of the credit portfolio.
➢ Both the introduction of the euro and conversion
to the year 2000 were carried through
without any problems.
➢ The bank was in compliance with supervisory
regulations for equity capital and liquidity
principles as well as major loans.
➢ The bank was not involved in any legal
disputes of significant risk.
For the coming fiscal year, we project
that the bank will be able to maintain the low level
of utilization of value-at-risk limits and the risk
provisions in relation to loans.
Our venture capital and participating interest
activities consolidated in Oppenheim Investor
are monitored by an autonomous, independent
controlling department.
Total equity capital and reserves in the
group as of the balance sheet date were æ 606
million. In addition, the bank possesses considerable
reserves of the type specified in Section
340f of the German Commercial Code.
At 10.4% our solvency ratios in the group
meet the requirements (regulatory minimum: 8%).
This corresponds to an improvement over the
previous year’s figure of almost 0.7%.
Service Divisions
41
Due to the sale of remaining shares in
Rheinboden Hypothekenbank AG in May 2000,
the group’s Principle I figure will approach that of
the bank (12.8% as of December 31, 1999). This
shows that the bank has a comfortable level of
equity capitalisation.

O CTOBER/NOVEMBER/DECEMBER
900 THIRD AV ENUE
In conjunction with the
New York real estate
company Paramount
Group, Bankhaus Oppenheim
is offering its
customers shares in the
office building at 900
Third Avenue, New York,
as part of a closed real
estate fund (legal form:
limited partnership).
42
Z EITWENDEN
Over 90 of the most interesting international artists
have been brought together in an exhibition entitled
Zeitwenden (Changing Times). The bank is supporting
this project and is opening the exhibition with a preview.
T RITON
In its role as lead investor, Oppenheim assisted experienced
equity managers with the setting up of a private
equity fund, Triton LP. Based on management buyouts
the fund invests in small and medium-sized companies.
After taking over the window and door manufacturer
Weru AG, this commitment is among the largest investments
in the private equity sector in Germany.
N EW OPERATING COMPANY FOR THE
K ÖLNARENA
The owners of the Kölnarena have agreed to
allow Philipp Holzmann AG to withdraw from
the existing lease and from its commitment as
operator of the Kölnarena.
A group of investors associated with the Bankhaus
is founding an operating company to be
both leaseholder and operator of the Kölnarena
for the remainder of the contract.
“
”
EVOTEC AG
Excerpt from the
EVOTEC AG annual
report.
➢
EVOTEC BioSystems AG
rewarded Sal. Oppenheim with a sub-
stantial voluntary payment for the spe-
cial services it provided during the
extremely successful stock market flota-
tion of EVOTEC on the Neuer Markt in
November 1999. Together with EVO-
TEC, Sal. Oppenheim has decided to
make this sum available for a Sal.
Oppenheim grant for research into
Alzheimer’s disease at EVOTEC for the
year 2000/2001. The aim is to pro-
mote a basic research project, based
on EVOTEC’s efforts to find innovative
drugs to treat the cause of this major
disease.
O CTOBER/NOVEMBER/DECEMBER
43
B RAINPOOL
The bank acted as lead manager in assisting Brainpool
TV with its stock market flotation in November 1999.
The Brainpool group is one of the leading producers
and marketers of German TV shows and series.
The most well-known Brainpool productions are
Die Wochenshow, TV Total and Liebe Sünde.
E MISSION T OMORROW
Den Börsengang begleitet das
Bankhaus ebenfalls als Lead-
Manager. Kerngeschäft der
Tomorrow Internet AG ist die
Online-Umsetzung erfolgreicher
Print-Titel der Verlagsgruppe
Milchstraße, wie TV-Spielfilm,
MAX oder Fit for Fun.
T OMORROW IPO
Acting as lead manager, the bank also oversaw the stock market flotation of Tomorrow
Internet AG. The company’s main field of business is the online presence of successful
print titles such as TV-Spielfilm, MAX or Fit for Fun from the Milchstrasse
publishing group.

Strategic position
The bank’s business activities are still centered
around comprehensive asset management for international
private investors as well as securities trading
and advisory services for Swiss stocks of institutional
clients. This emphasis on select core activities
has again proven to be a prudent strategy over the
past year.
Performance
With their mainly conservative investment
approach, private customers were able to profit
greatly from the positive trend on international stock
markets, achieving encouraging results. The broadly
placed special funds brought in fine returns,
especially in the second half of the year. The volume
under management rose once again thanks to new
acquisitions and the increase in the value of
customer deposits.
Since the bank’s activities do not focus on
operations affecting the balance sheet, its total assets
rose only to a level of SFr 555.3 million. Income
from commissions reached SFr 38.9 million,
9% less than the previous year’s excellent figure.
Interest hikes on capital markets as well as losses
in nostro option trading resulted in a profit figure
from trading of only SFr 6.4 million.
In line with the strategic further development
and medium-term planning of the parent bank in
Subsidiaries
Bank Sal. Oppenheim jr. & Cie. (Schweiz) AG
44
Cologne, the equity requirements of the bank were
redefined. It was decided to reduce the current overcapitalization.
The adjustment was carried out through a partial
liquidation of a SFr 21.5 million reserve for general
banking risk and the liquidation of provisions
totaling SFr 26.2 million. Following these measures
net income for the year after taxes came in at SFr 54.0
million.
The liquidated reserves and provisions will
be allocated within the group centralized provisioning
for risk. As a result the General Assembly
will be asked to approve distribution of the profit
totaling SFr 63.4 million as a dividend in the
amount of SFr 57.0 million, to assign SFr 5.7 million
to the statutory reserves, and to carry forward
SFr 0.8 million.
After allocation of funds to the reserves, the
stockholders’ equity of the bank shown on the balance
sheet will come to SFr 101.6 million, still well
in excess of the amount required by banking regulations.
At the end of 1999, Georg Freiherr von Richter
retired for reasons of age from his position as chairman
of the managing board. Board member René
Braginsky also left the bank to pursue his own business
interests. These two gentlemen made a signifi-
cant contribution to the success of the bank over two
decades. The board of directors would like to thank
them for their service.
Consequently, the torch is now being passed on
to a new generation in executive management. The
board of directors has appointed Dr. Christian A.
Camenzind, 39, to the position of managing director
as of January 1, 2000. At the same time, Eugen Bren-
Subsidiaries
Since January 1, 2000, Dr. Christian A. Camenzind
has been our new managing director in Zurich.
45
ner, 44, took over the Investment Banking division
as a member of the managing board.
Both of these gentlemen have many years of
international experience in the banking business. The
board of directors is convinced that with these two
appointments, the course is set for continued growth
through a proven strategy.

Strategic position
Sal. Oppenheim jr. & Cie. Luxemburg S.A.
focusses its activities on providing investment
advice and asset management for discriminating
private clients, as well as supporting the launch of
investment funds.
Performance
The 1999 fiscal year clearly exceeded all
expectations. Our Luxemburg partner was able to
manage the increased transaction volume thanks
to comprehensive reorganization measures and a
substantial increase in personnel. A high quality
standard was maintained in the administration of
investment funds and in private customer consulting.
Interest earnings rose steadily over the
course of the year. The commission surplus
jumped up particularly in the last quarter of the
year. As a result, the commission result exceeded
the interest surplus by five times.
The trading results did not suffer as a result
of the euro introduction since other currencies
such as the U.S. dollar, the yen and the Swiss franc
play a major role in customer investment strategies.
Therefore, the bank was able to raise its trading
result considerably, which is substantially
based on foreign currencies.
Subsidiaries
Sal. Oppenheim jr. & Cie. Luxemburg S. A.
46
The increase in personnel and the necessary
organizational changes led to a planned rise in costs
of 48%. The bank’s after-tax profit is æ 4.1 million
and corresponds to a return on equity of 31%.
Total assets are æ 492 million. This figure is
determined mainly by customer deposits. In 1999,
special transactions led to a higher figure for bank
deposits. Consistent with the bank’s risk-conscious
orientation, most of the funds deposited here are
placed in the interbank money market.
Existing relationships with our private
clients were deepened, and new customers were
acquired for the bank. The Asset Management
division showed particularly strong growth. While
the bank has until now been active primarily in
German-speaking countries, it will be increasingly
seeking clientele in France and Spain as well.
The bank’s funds under management are of
particular note, both with regard to their number
and the net inflow of pecuniary resources. The
volume of funds at the end of the year totaled
æ 1.8 billion.
After 36 years of service to the bank, Dr.
Jürgen Kaufmann went into retirement at the end
of February 2000. For many years, he headed the
Luxembourg subsidiary as a managing member of
the board of directors.
Aside from an abundance of significant
achievements for the parent company, he must be
given credit for the continuously progressive performance
of the Luxembourg subsidiary as well as
its firm establishment in the banking environment
of Luxembourg. The supervisory board and partners
are profoundly grateful to Dr. Kaufmann for
his successful work. Harry Rosenbaum, 41, will
take over his position. With his professional experience
gathered at a major Swiss bank, mainly in
Subsidiaries
Since March 1, 2000, Harry Rosenbaum has been
our new managing director in Luxembourg.
47
private banking transactions, he will ensure the
continuity of the growth-oriented development
of this subsidiary.
Assisting him in fulfilling his duties will be
the two additional business managers Mirko von
Restorff and Heinz-Johann Heisterkamp.

Our staff
The group employed an average of 1,212
persons last year, with 976 people working at the
bank, including its domestic subsidiaries and
FURTHER TRAINING COSTS
2,500
2,000
1,500
1,000
500
0
95 96 97 98 99
affiliates. A further 147 people were employed by
our subsidiaries in Switzerland (91) and Luxembourg
(56).
Personnel development/
basic and further training
The bank’s success depends in large part on
well-trained, motivated, and highly knowledgeable
employees, people who work independently with
a great sense of personal commitment, contribute
their own ideas, and are always open to change and
willing to learn.
To support its staff members, the bank uses
the latest information and communications tech-
Human Resources
Human Resources
thou. æ
48
nology and continues to invest extensively in
further development.
These prerequisites – coupled with special
employee conferences for setting objectives and
appraising work performance, success-oriented
remuneration, and quick decision-making thanks
to a streamlined hierarchy – are all helping ensure
that the bank is well prepared for the future.
In our training program for a total of 20
trainees, we have implemented a new training procedure
focussed on the professional qualification
of the trainees, while emphasizing skills in
decision-making, methods, and consulting.
In an effort to expand the number of young,
highly qualified junior employees, we had five
university graduates go through our new training
program in 1999. In this one-year program, they
took on challenging project tasks spanning different
divisions, and gained extensive experience
for further assignments.
For the professional training of our junior
employees, we have developed an intensive eightweek
training program geared to all the major
aspects of modern banking. Developed in cooperation
with the USW at Schloss Gracht, the program’s
instructors come from both academic and
business backgrounds.
Significant events
The transfer of the securities and derivatives
settlement to an external service provider
directly affects 84 employees and indirectly
affects all operating divisions of the bank. In
November 1999, a large number of employees in
the respective departments agreed to support our
company as the employees of our transaction
partner.
Human Resources
The following staff celebrated 25
years of service in 1999
Heinz Beuth
Jürgen Böttcher
Ursula Eck
Adolf Girschick
Hans-Christian Höveler
In reverent memory of
our deceased employees
and pensioners
Rosalia Gallowitsch
Jörg Heyn
Horst-Elmar Hoefges
Hanns Rohde
49
Thanks to our staff
The success we experienced in 1999 can be
accredited to the extraordinary efforts of our
employees. Furthermore, we would like to express
our gratitude to our employee representatives for
their constructive cooperation.

Human Resources Human Resources
Celebrating their 25th anniversary with the company are
(from left) Ursula Eck, Heinz Beuth, Adolf Girschick, Jürgen Böttcher and Hans-Christian Höveler.
Representing the 25 new trainees and apprentices are
(from left) Ulrich Dedekind, Christoph Höfer, Andrea Willems-Esch, Daniel Raab and Henning von Stechow.
50 51

Annual Financial Statementes
Annual Financial Statements
BALANCE SHEET AND PROFIT
AND LOSS FOR THE GROUP
BALANCE SHEET AND PROFIT
AND LOSS FOR THE BANK
APPENDIX
APPROPRIATION OF PROFIT
AUDITOR’S REPORT
53

CONSOLIDATED BALANCE SHEET FOR THE GROUP
AS OF DECEMBER 31, 1999
Assets 1999 1998
thou. æ thou. æ thou. æ thou. æ thou.æ
Cash reserve
a) Cash 3,963 2,334
b) Balances with central banks 64,074 23,702
including the Deutsche Bundesbank 53,873 17,673
c) Balances with post office banks 55 93
68,092 26,129
Claims on banks
a) repayable on demand 656,018 981,782
b) other claims 1,349,603 762,596
2,005,621 1,744,378
Claims on customers 2,402,091 2,589,839
including secured by mortgages on real estate 4,160 3,550
municipal loans
Bonds and other fixed-interest securities
a) Money market instruments
21,113 30,091
aa) issued by public bodies – –
including: eligible as collateral at the Deutsche Bundesbank –
ab) issued by others – – –
including: eligible as collateral at the Deutsche Bundesbank
b) Bonds and notes
–
ba) issued by public bodies 211,788 156,261
including: eligible as collateral at the Deutsche Bundesbank 145,047 20,918
bb) issued by others 1,292,946 1,504,734 1,462,022
including: eligible as collateral at the Deutsche Bundesbank 1,002,919 924,618
c) Own bonds 171.505 50,509
Nominal amount 179,654
1,676,239 1,668,792
Equities and other variable-interest securities 1,131,916 800,933
Participating interests 55,596 30,614
including: in banks 1,632 1,515
in financial service institutes 4,193 762
Shares in affiliated companies 908 16,248
including: in banks –
in financial service institutes –
Shares in associated companies 89,083 106,898
Trust assets 679,902 620,905
including: loans on a trust basis 5,400 5,039
Intangible fixed assets 3,623 4,838
Tangible assets 68,125 58,742
Other assets 431,567 326,933
Deferred items 15,520 14,257
Total assets 8,628,283 8,009,506
54
Liabilities 1999 1998
thou. æ thou. æ thou. æ thou. æ thou.æ
Liabilities to banks
a) repayable on demand 143,237 203,460
b) with agreed term or period of notice 258,786 442,513
402,023 645,973
Liabilities to customers
a) Savings deposits
aa) with agreed period of notice
of three months
ab) with agreed period of notice
2,031 2,098
of more than three months
b) Other liabilities
1,327 3,358 1,404
ba) repayable on demand 1,885,934 1,491,555
bb) with agreed term or period of notice 3,053,196 4,939,130 3,560,878
4,942,488 5,055,935
Liabilities in certificated form
a) Bonds and notes issued 1,195,876 475,546
b) Other liabilities in certificated form 24,069 –
1,219,945 475,546
including: money market instruments –
own acceptances and promissory notes in circulation –
Trust liabilities 679,902 620,905
including: loans on a trust basis 5,400 5,039
Other liabilities 566,726 427,638
Deferred items
Provisions
26,751 28,128
a) Provisions for pensions and similar obligations 45,125 36,491
b) Tax provisions 40,293 30,379
c) Other provisions 60,494 74,263
145,912 141,133
Special reserves 1,076 –
Funds for general bank risks
Equity
15,439 15,439
a) Subscribed capital 200,000 102,258
b) Capital reserve
c) Revenue reserves
350,000 409,034
ca) Reserves according to by-laws – 10,226
cb) Other revenue reserves 43,866 43,866 51,378
d) Minority interests 12,155 5,461
e) Unappropriated profit 22,000 20,452
628,021 598,809
Total liabilities
1. Contingent liabilities
8,628,283 8,009,506
a) Contingent liabilities from the endorsement of negotiated bills – –
b) Contingent liabilities under guarantees and indemnity agreements 319,175 319,378
c) Contingent liabilities from the provision of collateral for third-party obligations – –
319,175 319,378
2. Other commitments
a) Commitments under repurchase agreements – –
b) Placement and underwriting obligations – –
c) Irrevocable lending commitments 1,278,614 1,617,302
1,278,614 1,617,302
3. Separate trust assets administered for shareholders
Total value of assets 20,923,239 16,920,251
Number of administered trust assets 278 215
55

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE GROUP
FOR THE YEAR ENDED DECEMBER 31, 1999
Expenses 1999 1998
thou. æ thou. æ thou. æ thou. æ thou. æ
Interest expenses 191,888 238,804
Commission expenses 57,902 48,001
General administrative expenses
a) Staff cost
aa) Wages and salaries
ab) Social security contributions, pensions and
119,088 95,275
other employee benefits 22,718 141,806 18,070
including: pension cost 11,902 8,170
b) Other administrative expenses 110,939 95,049
252,745 208,394
Depreciation and valuation writedowns of tangible
and intangible fixed assets 11,290 6,620
Other operating expenses 4,675 7,385
Depreciation and valuation writedowns of claims and certain securities
and additions to provisions relating
to lending business 23,053 8,449
Depreciation and valuation writedowns of participating interests,
shares in affiliated companies and
securities treated as financial fixed assets – 815
Extraordinary expenses 1,076 –
Taxes on income 47,468 27,814
Other taxes 129 308
Profit for the year 48,662 43,955
Total expenses 638,888 590,545
Profit for the year 48,662 43,955
Net change in reserves –23,214 –22,434
Share of profit attributable to minority interests –3,448 –1,069
Consolidated unappropriated profit 22,000 20,452
56
Income 1999 1998
thou. æ thou. æ thou. æ
Interest income from
a) lending and money market transactions
b) fixed-income securities
152,392 190,385
and government-inscribed debt 58,569 62,684
210,961 253,069
Current income from
a) equities and other variableinterest
securities 41,630 38,665
b) participating interests 2,201 3,960
c) shares in affiliated companies – –
43,831 42,625
Income from shares in associated companies 19,606 20,895
Commission income 273,395 231,130
Net income from financial operations 78,157 32,967
Income from valuation writeups or participating interests,
shares in affiliated companies and securities treated as
financial fixed assets 820 –
Other operating income 12,118 9,859
Total income 638,888 590,545
57

BALANCE SHEET FOR THE BANK AS OF DECEMBER 31, 1999
Assets 1999 1998
thou. æ thou. æ thou. æ thou. æ thou. æ
Cash reserve
a) Cash 1,966 1,409
b) Balances with central banks 48,614 17,673
including: the Deutsche Bundesbank 15,942 17,673
50,580 19,082
Claims on banks
a) repayable on demand 591,328 943,027
b) other claims 930,699 419,680
1,522,027 1,362,707
Claims on customers 2,724,890 2,980,707
including: secured by mortgages on real estate – 3,550
municipal loans
Bonds and other fixed-interest securities
a) Money market instruments
21,113 30,091
aa) issued by public bodies – –
including: eligible as collateral at the Deutsche Bundesbank –
ab) issued by others – – –
including: eligible as collateral at the Deutsche Bundesbank
b) Bonds and notes
–
ba) issued by public bodies 179,113 115,431
including: eligible as collateral at the Deutsche Bundesbank 139,221 18,402
bb) issued by others 1,260,294 1,439,407 1,344,939
including: eligible as collateral at the Deutsche Bundesbank 999,894 843,096
c) Own bonds 156,064 35,052
Nominal amount 164,316
1,595,471 1,495,422
Equities and other variable-interest securities 663,689 305,998
Participating interests 139,974 140,709
including: in banks 82,418 98,811
in financial service institutes – 762
Shares in affiliated companies 104,023 95,238
including: in banks 78,850 71,579
in financial service institutes 2,000 1,534
Trust assets 13,476 9,725
including: loans on a trust basis 5,033 4,689
Intangible fixed assets 3,623 4,838
Tangible assets 36,681 35,757
Other assets 392,212 264,364
Deferred items 1,135 8,497
Total assets 7,247,781 6,723,044
58
Liabilities 1999 1998
thou. æ thou. æ thou. æ thou. æ thou. æ
Liabilities to banks
a) repayable on demand 137,740 190,472
b) with agreed term or period of notice 186,711 420,335
324,451 610,807
Liabilities to customers
a) Savings deposits
aa) with agreed period of notice
of three months
ab) with agreed period of notice
2,031 2,098
of more than three months
b) Other liabilities
1,327 3,358 1,404
ba) repayable on demand 1,671,593 1,295,201
bb) with agreed term or period of notice 2,716,157 4,387,750 3,181,190
4,391,108 4,479,893
Liabilities in certificated form
a) Bonds and notes issued 1,195,876 475,546
b) Other liabilities in certificated form 24,069 –
1,219,945 475,546
including: money market instruments –
own acceptances and promissory notes in circulation –
Trust liabilities 13,476 9,725
including: loans on a trust basis 5,033 4,689
Other liabilities 554,177 423,666
Deferred items
Provisions
4,793 12,252
a) Provisions for pensions and similar obligations 35,459 31,050
b) Tax provisions 24,083 23,907
c) Other provisions 50,288 50,820
109,830 105,777
Special reserves
Equity
1,076 –
a) Subscribed capital 200,000 102,258
b) Capital reserve
c) Revenue reserves
350,000 409,034
ca) Reserves according to by-laws – 10,226
cb) Other revenue reserves 56,925 56,925 63,408
d) Unappropriated profit 22,000 20,452
628,925 605,378
Total liabilities
1. Contingent liabilities
7,247,781 6,723,044
a) Contingent liabilities from the endorsement of negotiated bills – –
b) Contingent liabilities under guarantees and indemnity agreements 292,817 316,684
c) Contingent liabilities from the provision of collateral for third-party obligations – –
292,817 316,684
2. Other commitments
a) Commitments under repurchase agreements – –
b) Placement and underwriting obligations – 2,530
c) Irrevocable lending commitments 1,278,614 1,617,302
1,278,614 1,619,832
59

PROFIT AND LOSS ACCOUNT FOR THE BANK
FOR THE YEAR ENDED DECEMBER 31, 1999
Expenses 1999 1998
thou. æ thou. æ thou. æ thou. æ thou. æ
Interest expenses 175,395 221,977
Commission expenses 24,096 21,314
General administrative expenses
a) Staff cost
aa) Wages and salaries
ab) Social security contributions,
77,548 59,393
pensions and other employee benefits 15,768 93,316 12,412
including: pension cost 8,742 5,903
b) Other administrative expenses 88,728 77,299
182,044 149,104
Depreciation and valuation writedowns of tangible
and intangible fixed assets 5,309 3,447
Other operating expenses 1,573 1,081
Depreciation and valuation writedowns of claims
and certain securities and additions
to provisions relating to lending business 19,297 862
Losses taken over 183 4,416
Special reserves 1,076 –
Taxes on income 35,347 23,461
Other taxes 63 243
Profit for the year 43,999 40,400
Total expenses 488,382 466,305
Profit for the year
Transfer to revenue reserves
43,999 40,400
a) to statutory reserve – –
b) to reserve for own shares – –
c) to reserves according to by-laws – –
d) to other revenue reserves 21,999 21,999 19,948
Unappropriated profit 22,000 20,452
60
Income 1999 1998
thou. æ thou. æ thou. æ
Interest income from
a) lending and money market transactions
b) fixed-interest securities and government-
144,761 190,532
inscribed debt 54,561 58,097
199,322 248,629
Current income from
a) equities and other variableinterest
securities 21,838 24,868
b) participating interests 19,102 19,173
c) shares in affiliated companies 10,209 10,004
51,149 54,045
Income from profit pooling and
profit transfer agreements 25,889 18,632
Commission income 145,040 127,262
Net income from financial operations 58,235 11,667
Income from valuation writeups or participating interests,
shares in affiliated companies and securities treated as
financial fixed assets 5,921 4,838
Other operating income 2,826 1,232
Total income 488,382 466,305
61

Accounting regulations
The annual financial statements of the bank
and consolidated financial statements of the group
for the year ended December 31, 1999 have been
drawn up in accordance with the regulations contained
in the German Commercial Code (Handelsgesetzbuch,
or HGB), the German Stock Corporation
Law (Aktiengesetz, or AktG), and the
rules on accounting regulations for the financial
statements of banks and financial institutions.
Accounting and valuation policies
Cash reserves are shown at full face value.
Holdings in foreign currencies have been translated
at the closing rates of exchange at the yearend.
Debt instruments are shown at their full nominal
amount less valuation writedowns and provisions
for doubtful debts; redemption premiums
and discounts are carried forward as deferred
items and taken or charged to income on a proportionate
time basis. Individual risks are covered
by specific valuation writedowns, potential risks
by a general writedown. There is also a provision
for general banking risks. Securities are valued in
accordance with the strict lower of cost or market
principle. The balance sheet valuation of bonds
and other fixed-interest securities includes interest
accrued up to the balance sheet date.
Participating interests and shares in affiliated
companies are valued at cost in accordance
with the rules applicable to non-current assets,
Appendix
1. GENERAL INFORMATION
62
reduced by exceptional writedowns where any
diminution in value is expected to be permanent.
Tangible fixed assets are valued at cost, and
where necessary, this is reduced by scheduled
depreciation to reflect wear and tear. Depreciation
is calculated at the rates permissible for tax purposes.
Assets of low value are written off in full in
the year when they are acquired.
Liabilities are shown at the amount due on
repayment; redemption premiums and debt discounts
are carried forward as deferred items and
taken or charged to income on a proportionate
time basis. Provisions have been set up to cover
uncertain liabilities and losses on business transactions
still in the course of completion, calculated
at the amounts considered necessary to meet
the expected liabilities. Pension provisions are calculated
on the basis of actuarial principles at the
amounts permitted for tax purposes. The new reference
schedules for 1998 were used for this. Contingent
liabilities are shown at the full amount of
the liability less any provision for specific risk.
Separate valuation unit reserves were
formed to hedge balance sheet items, as well as
expenses and earnings where available. In calculating
income from trading, the valuation results
for each underlying risk were offset against one
another in predefined, documented portfolios. The
principle underlying this procedure is to ensure
that risks from individual transactions are secured
where transactions are matched. Following the
principle of unequal treatment of losses and
income, there is no valuation for income, whereas
for losses, reserves are created.
Currency translation
Balance sheet items dealing with current
assets, contingent liabilities and other commitments
denominated in foreign currency have been
translated at spot rates. Transactions at forward
rates not yet settled have been translated at the
respective forward rates. Currency translation
gains have been set off against identical amounts
of losses on transactions in the same currency.
Non-current assets denominated in foreign currencies
have been translated at historical rates of
exchange.
Principles of consolidation
The list of consolidated companies includes
the principal company of the group, Sal. Oppenheim
jr. & Cie. KGaA, 20 German subsidiaries
and 11 subsidiaries in other countries in which the
Bankhaus controls the majority capital and voting
rights either directly or indirectly. In addition, nine
companies were included at equity. Proportional
operating earnings, deficits, writedowns of business
or company goodwill, and profits or losses
from sales of assets are entered into the result from
participating interests in associated companies.
Ten companies were not included due to their
insignificance. The closing date for annual finan-
63
cial statements is December 31, 1999 for all of the
companies.
Financial statements drawn up in foreign
currency have been translated at the middle rates
of exchange at the balance sheet date. Claims and
liabilities between companies included in the consolidation
and intra-group income and expenses
have been set off against each other. In line with
normal accounting practice, the consolidated
unappropriated profit of the group is shown to be
the same as the unappropriated profit of the parent
bank. The proportionate profits and losses of subsidiaries
included in the consolidation and all consolidation
procedures affecting earnings have been
taken to revenue reserves.
List of shareholdings
A list of shareholdings as required by Section
285, No. 11 and Section 313, Paragraph 2 and
4 of the German Commercial Code has been filed
for entry in the Cologne Commercial Register
under number B 20121.

Companies included in the consolidated financial statements as of December 31, 1999
Name Corporate Capital Division
domicile share
in %
1. 100% consolidated companies
Sal. Oppenheim jr. & Cie. KGaA Cologne 100.00
Bank Sal. Oppenheim jr. & Cie. (Schweiz) AG Zurich 93.75 Bank interest
Oppenheim Finanzanalyse GmbH Cologne 100.00 Bank interest
Sal. Oppenheim jr. & Cie. Luxemburg S.A. Luxembourg 100.00 Bank interest
BasisInvest Kapitalanlagegesellschaft mbH i.G. Cologne 51.00 Asset Management
Montgomery Oppenheim Ltd Dublin 60.00 Asset Management
OP-Invest CHF Management S.A. Luxembourg 93.81 Asset Management
Oppenheim Capital Management GmbH Cologne 100.00 Asset Management
Oppenheim Fonds Trust GmbH Cologne 100.00 Asset Management
Oppenheim Immobilien-Kapitalanlagegesellschaft mbH Wiesbaden 65.00 Asset Management
Oppenheim International Finance Dublin 100.00 Asset Management
Oppenheim Investment Management International S.A. Luxembourg 100.00 Asset Management
Oppenheim Kapitalanlagegesellschaft mbH Cologne 100.00 Asset Management
Oppenheim Property Services B.V. Zeist 65.00 Asset Management
PHARMA w/HEALTH Management S.A. Luxembourg 93.75 Asset Management
Sal. Oppenheim jr. & Cie. Asset Management Corp. New York 100.00 Asset Management
APOLLON Vermögensverwaltungsgesellschaft mbH Cologne 100.00 Investment Banking
KASSOS Beteiligungs- und Verwaltungs GmbH Cologne 100.00 Investment Banking
MAGYAR Beteiligungs- und Verwaltung GmbH Cologne 100.00 Investment Banking
SIROS Beteiligungs- und Verwaltungs GmbH Cologne 100.00 Investment Banking
NEPTUNO Verwaltungs- und Treuhand-Gesellschaft mbH Cologne 100.00 Investment Banking
Oppenheim Beteiligungs-AG Wuppertal 94.00 Investment Banking
Oppenheim Forfait GmbH Cologne 100.00 Investment Banking
POSEIDON Vermögensverwaltungsgesellschaft mbH Cologne 100.00 Investment Banking
PPG Industries (Deutschland) GmbH Wuppertal 94.00 Investment Banking
Sal. Oppenheim jr. & Cie. Securities Inc. New York 100.00 Investment Banking
Sal. Oppenheim jr. & Cie. Securities (UK) Ltd London 100.00 Investment Banking
SAMOS Vermögensverwaltungs GmbH Cologne 100.00 Investment Banking
TILOS Vermögensverwaltungs GmbH Cologne 100.00 Investment Banking
URANOS Vermögensverwaltungs GmbH Cologne 100.00 Investment Banking
VB Glas Großhandelsgesellschaft mbH Pforzheim 94.00 Investment Banking
Oppenheim Vermögenstreuhand GmbH Cologne 100.00 Private Banking
Name Corporate Capital Division
domicile share
in %
2. Companies consolidated at equity
64 65
Rheinboden Hypothekenbank AG Cologne 33.78 Bank interest
CALCULUS Investment Management S.A. Luxemburg 25.20 Asset Management
Oppenheim Portfolio Management (Schweiz) AG Zurich 47.81 Asset Management
Thieme Asset Management GmbH Luxemburg 25.00 Asset Management
Karl Storz European Finance Ltd Dublin 50.00 Investment Banking
Oppenheim-Esch Holding GbR Troisdorf 50.00 Private Banking
Oppenheim Immobilientreuhand GmbH Cologne 50.00 Private Banking
Oppenheim Verwaltung von Immobilienvermögen mbH Cologne 50.00 Private Banking
Spängler, Oppenheim Vermögensverwaltung GmbH Vienna 39.38 Private Banking
3. Non-consolidated companies
CKA Unternehmensverwaltung und Beteiligungs-GmbH Cologne 51.00 Investment Banking
KEROS Beteiligungs- und Verwaltungs GmbH Cologne 100.00 Investment Banking
LEROS Beteiligungs- und Verwaltungs GmbH Cologne 100.00 Investment Banking
MILOS Vermögensverwaltungs GmbH Cologne 100.00 Investment Banking
PAROS Beteiligungs- und Verwaltungs GmbH Cologne 100.00 Investment Banking
PATMOS Vermögensverwaltungs GmbH Cologne 100.00 Investment Banking
plettac plana Vermiet- und Leasing Verwaltungsgesellschaft mbH Cologne 100.00 Investment Banking
SILOS Vermögensverwaltungs GmbH
Tertia Büromaschinen Vermiet- und Leasing-
Cologne 100.00 Investment Banking
Verwaltungsgesellschaft mbH Düsseldorf 100.00 Investment Banking
PS Plus Portfolio Software + Consulting GmbH Rödermark 80.20 Private Banking

2. EXPLANATORY NOTES ON INDIVIDUAL BALANCE SHEET
AND PROFIT AND LOSS ACCOUNT HEADINGS
Maturity structure
(originally agreed term of period of notice)
Other claims on banks
Group Group Bank Bank
1999 1998 1999 1998
thou. æ thou. æ thou. æ thou. æ
up to three months 1,172,823 534,121 743,357 201,657
more than three months and up to one year 44,031 74,653 57,175 65,774
more than one year and up to five years 66,569 87,104 66,216 85,755
more than five years 58,854 60,626 58,855 60,626
interest accrued 7,326 6,092 5,096 5,868
Claims on customers
up to three months 1,011,828 1,175,025 1,259,190 1,306,697
more than three months and up to one year 492,173 925,469 612,806 1,227,176
more than one year and up to five years 820,593 358,728 777,537 370,451
more than five years 72,038 124,989 68,929 68,261
interest accrued 5,459 5,627 6,428 8,122
Debt claims without a fixed term 68,676 80,924 16,805 56,489
Subordinate debt claims 7,001 – 8,696 947
Bonds and notes
issued by public and other bodies
maturing in the year following the balance sheet date 201,584 98,640 197,585 89,687
subordinated bonds and notes 4,527 4,527 4,527 4,527
accounting value of securities repurchase agreement 14,888 – 14,888 –
Own bonds
maturing in the year following the balance sheet date 139,908 13,106 139,908 13,106
Liabilities to banks with agreed term
or period of notice of
66 67
Group Group Bank Bank
1999 1998 1999 1998
thou. æ thou. æ thou. æ thou. æ
up to three months 214,331 388,566 148,713 371,724
more than three months and up to one year 6,672 12,933 476 7,648
more than one year and up to five years 28,250 27,868 28,250 27,865
more than five years 8,670 9,872 8,670 9,872
interest accrued 863 3,274 602 3,227
Liabilities to customers
Savings deposits
with agreed term or period of notice of
up to three months 82 99 82 99
more than three months and up to one year 1,062 1,030 1,062 1,030
more than one year and up to five years 183 275 183 275
more than five years – – – –
Other liabilities
to customers with agreed term or period of notice of
up to three months 2,532,504 2,906,334 2,232,330 2,573,150
more than three months and up to one year 158,586 310,567 122,447 264,676
more than one year and up to five years 93,562 98,542 93,275 98,194
more than five years 252,042 228,176 252,042 228,176
interest accrued 16,502 17,259 16,064 16,994
Liabilities in certificated form
Bonds and notes issued
maturing in the year following the balance sheet date 1,022,339 147,545 1,022,339 147,545
Other liabilities in certificated form
more than three months and up to one year 20,205 – 20,205 –
more than one year and up to five years 3,864 – 3,864 –

Financial relations with affiliated companies
Group Group Bank Bank
1999 1998 1999 1998
thou. æ thou. æ thou. æ thou. æ
Claims on banks – – 54,555 34,139
Claims on customers 28 – 522,077 578,413
Liabilities to banks – – 17,562 16,010
Liabilities to customers 341 1,771 28,741 21,411
Liabilities under guarantees 3 404 2,037 2,123
Financial relations with companies in which participating interests are held
Group Group Bank Bank
1999 1998 1999 1998
thou. æ thou. æ thou. æ thou. æ
Claims on banks 26,319 26,613 26,319 26,613
Claims on customers 27,029 314 27,029 314
Bonds and other fixedinterest
securities 106,225 246,884 106,225 246,884
Liabilities to banks 5,898 35,634 5,898 35,634
Liabilities to customers 33,697 8,950 33,076 8,950
68
Marketable securities and financial assets
Group
69
1999 1998
listed unlisted listed unlisted
thou. æ thou. æ thou. æ thou. æ
Bonds and other fixedinterest
securities 1,445,793 230,446 1,597,879 70,913
Equities and other variableinterest
securities 997,588 36,837 731,113 51,583
Participating interests – 7,825 465 802
Shares in associated companies 73,810 – 70,137 20,213
Bank
Bonds and other fixedinterest
securities 1,368,005 227,466 1,427,249 68,173
Equities and other variableinterest
securities 573,132 12,897 269,284 34,971
Participating interests 80,786 802 78,046 20,052
Shares in affiliated companies – – – –
Trust transactions
(breakdown by balance-sheet item)
Group Group Bank Bank
1999 1998 1999 1998
Tæ Tæ Tæ Tæ
Claims on banks 657,422 603,713 – –
Claims on customers 5,400 5,039 5,033 4,689
Participating interests 17,080 12,153 8,443 5,036
Assets on a trust basis 679,902 620,905 13,476 9,725
Liabilities to banks 620 606 620 606
Liabilities to customers 679,282 620,299 12,856 9,119
Liabilities on a trust basis 679,902 620,905 13,476 9,725

Changes in non-current assets
Group
Costs Additions Disposals Reclassifications Depreciation Net book value
during year during year during year and writedowns Dec. 31, Dec. 31,
during year accumulated 1999 1998
thou. æ thou. æ thou. æ thou. æ thou. æ thou. æ thou. æ thou. æ
Participating interests
Shares in
affiliated
43,443 28,123 1,618 – 771 14,352 55,596 30,614
companies
Shares in
associated
16,248 220 15,560 – – – 908 16,248
companies
Equities and
other variable-
102,736 40 21,592 – –4,700 –7,899 89,083 106,898
interest securities 1,868 131 79 – –49 1,118 802 706
Intangible assets
Tangible fixed
5,146 158 – 439 1,811 2,120 3,623 4,838
assets
including:
Land and
premises for
112,512 28,180 4,732 –439 9,479 67,396 68,125 58,742
own use
Office
furniture and
44,781 – – – 406 13,277 31,504 31,928
equipment 67,647 11,335 4,732 –439 8,475 46,108 27,703 26,773
Bank
Participating interests 153,881
Shares in
affiliated
42,952 43,677 – 10 13,182 139,974 140,709
companies 95,333 10,400 1,613 – – 96 104,024 95,238
Intangible assets
Tangible fixed
5,146 158 – 439 1,811 2,120 3,623 4,838
assets
including:
Land and
premises for
62,370 6,087 1,982 –439 3,498 29,355 36,681 35,757
own use
Office
furniture and
27,898 – – – 381 4,119 23,780 24,161
equipment 34,433 6,087 1,982 –439 3,116 25,236 12,863 11,558
70
Individual amounts which are material for a true and fair view of the annual financial statements
Other assets
71
Group Group Bank Bank
1999 1998 1999 1998
thou. æ thou. æ thou. æ thou. æ
Premiums for option rights carried forward 313,899 186,363 307,686 181,213
Claims on controlled subsidiary companies – – 26,141 19,057
Claims against the Federal Tax Office in connection
with corporation tax and withholding tax 26,244 – 26,244 1,300
Claims for tax refunds 24,891 35,614 22,151 35,543
Shares in companies within the scope
of the Corporate Finance division 38,051 57,322 – –
Claims for reimbursement of expenses 3,202 3,340 – –
Other liabilities
Premiums for writing options 416,591 347,587 412,601 347,587
Liabilities under securities transactions 46,889 38,688 46,889 38,688
Liabilities towards the tax office 9,377 8,417 8,411 7,594
Liabilities in connection with miscellaneous derivatives 67,769 13,666 67,769 13,666
Liabilities with regard to controlled subsidiary companies – – 183 5,481
Foreign currency items
Assets 1,029,886 1,237,794 407,935 746,000
Liabilities 786,525 1,314,386 245,645 801,232

Liabilities under guarantees and indemnities
Group Group Bank Bank
1999 1998 1999 1998
thou. æ thou. æ thou. æ thou. æ
Loan guarantees 45,720 47,236 45,720 47,236
Letters of credit 205 17,680 205 17,680
Other indemnities and guarantees 273,250 260,711 246,892 251,767
Assets pledged as security
Securities valued at 726,184 thou. æ for the bank and 756,464 thou. æ for the group were pledged as security for transactions on
the Eurex, for securities lending and for short-term fund-raising.
Subscribed capital
The Annual General Meeting on April 16, 1999 passed a motion to translate capital holdings into euro. The subscribed capital of
200,000 thou. DM was converted into euro at an exchange rate of æ 1 = DM 1.95583. At the same time the amount of subscribed
capital was raised to 200,000 thou. æ through a transformation of legal reserves as well as other revenue reserves into subscribed
capital. The capital reserve now amounts to æ 350,000 thou. æ and the other revenue reserves amount to 56,925 thou. æ following
the allocation from the profit for 1999. The registered shares are divided into 100,000 shares.
72
Statement of changes in the financial position (Group)
Net income for the year
Payment-forming items and sums carried over and contained in the net income for the year
Cash flow from operating transactions
in million æ
49
Depreciation and valuation writedowns of tangible and intangible fixed assets 33
Change in reserves 5
Change in other payment-forming items –1
Gain of sale from financial investments and tangible fixed assets –2
Other adjustments (per balance) –46
Subtotal
Change in assets and liabilities from operating transactions
After adjustment for payment-forming components
Claims
38
– on banks –262
– on customers 188
Securities (not considered financial assets) –338
Other assets from operating transactions
Liabilities
–108
– to banks –244
– to customers –114
Liabilities in certificated form 744
Other liabilities from operating transactions 138
Interest and dividends earned 294
Interest paid –192
Tax on earnings paid –47
Cash Flow from operating transactions
Payments for acquisition of
97
– financial assets
Payments for acquisition of
2
– financial assets –17
– tangible assets
Effects of the change in the consolidation situation
–28
– income from the sale of consolidated companies and other business units 21
– change in funds from other investment transactions (per balance) –13
Cash flow from investment transactions –35
Dividends paid –20
Cash flow from financing transactions –20
Total instruments of payment at the end of the previous period 26
Cash flow from operating transactions 97
Cash flow from investment transactions –35
Cash flow from financing transactions –20
Total instruments of payment at the end of the period 68
73

3. OTHER INFORMATION
Information on financial derivatives (Group)*
Interest rate-related transactions
Notional principal amount
Period of maturity Total Counterup
to 1 year 1–5 years over 5 years party risk
in million æ in million æ in million æ in million æ in million æ
OTC products
FRAs 380 – – 380 –
Interest rate swaps 5,142 8,838 4,797 18,777 327
Interest rate options – purchases 200 1,249 150 1,599 14
Interest rate options – sales 126 1,430 129 1,685 –
Other interest rate contracts 141 – – 141 –
Exchange-traded products
Interest rate futures 3,841 11 – 3,852 –
Interest rate options 6 – – 6 –
Total 9,836 11,528 5,076 26,440 341
Exchange rate-related transactions
OTC products
Forward exchange operations 11,455 1,791 – 13,246 372
Cross-currency swaps 260 370 199 829 19
Currency options – purchases 1,425 36 – 1,461 41
Currency options – sales 1,698 26 – 1,724 –
Total 14,838 2,223 199 17,260 432
* The volumes of the bank differ only slightly from those of the group.
74
Equity/index-related transactions
Notional principal amount
Period to maturity Total Counterup
to 1 year 1–5 years over 5 years party risk
in million æ in million æ in million æ in million æ in million æ
OTC products
Equity/index options – purchases 959 145 – 1,104 168
Equity/index options – sales 872 133 – 1,005 –
Other equity/index contracts 253 – – 253 –
Exchange-traded products
Equity/index futures 410 – – 410 1
Equity/index options 3,457 468 – 3,925 –
Total 5,951 746 – 6,697 169
Other business
Exchange-traded products
Options 28 1 – 29 3
Grand total 30,653 14,498 5,275 50,426 945
Counterparty structure in financial derivatives business (after netting)
in million æ
OECD banks and financial service institutes 223
Other corporate enterprises, private individuals 309
Total 532
75

Country liabilities
Country credit rating Gross volume in million æ Net volume in million æ
Institutional Investor 09/99 (after subtraction of Hermes collateral,
value-holding bank guarantees,
export insurance and exporter liability)
50 to 65 13,8 7,6
40 to 50 4,1 0,9
under 40 54,8 15,2
Total 72,7 23,7
Industry profile of credit portfolio
Industry %
Energy industry, mining 3.3
Processing 13.8
Construction 3.1
Trade 2.7
Traffic and news transmission 2.7
Financing institutions 6.6
Service industry (including freelance) 11.5
Holding companies 22.0
Culture, sports, entertainment 1.1
Economically dependent private individuals 27.5
Public budgets 5.7
Total institutions and private individuals in Germany 100.0
Other financial commitments (Section 285, No. 3 of the German Commercial Code, Bank)
Our shareholding in Liquiditäts-Konsortialbank GmbH, Frankfurt am Main, carries an obligation to pay up further capital of
2,282 thou. æ when called. Payment obligations from tenancy agreements and leases total 168,654 thou. æ with a remaining term
of up to 28 years.
Management and acquisition services
The following services provided for third parties were material in amount:
Custodial services
Asset management
Mergers and acquisitions
Fiduciary services
76
Geographical analysis of income
Group
77
1999 1998
Germany Abroad Germany Abroad
thou. æ thou. æ thou. æ thou. æ
Interest income 163,160 47,801 147,792 105,277
Current income 63,292 145 63,172 348
Commission income 208,911 64,484 177,910 53,220
Net income from financial operations 65,832 12,325 28,147 4,820
Other operating income 11,343 775 9,313 546
Bank
Interest income 168,266 31,056 166,203 82,426
Current income 51,149 – 54,045 –
Commission income 145,037 3 127,160 102
Net income from financial operations 58,160 75 11,544 123
Other operating income 2,680 146 1,115 117
Average number of employees for the year
Bank Group
Male Female Total Total
Full-time 347 302 649 1.089
Part-time 11 43 54 100
Trainees 13 7 20 23
Total 371 352 723 1,212
Information on remuneration and loans of governing bodies
As permitted by Section 286 (4) of the German Commercial Code, details of the emoluments of the managing partners are not being
disclosed. As of December 31, 1999, loans advanced to and contingent liabilities assumed by the managing partners amount to
46,066 thou. æ and for members of the supervisory board 33,807 thou. æ. Provisions for pensions of former managing partners and
their surviving dependents amounted to 11,150 thou. æ.

Governing bodies of Sal. Oppenheim jr. & Cie. KGaA
Honorary Chairman
Dr. h.c. Harald Kühnen
Supervisory Board
Dr. h.c. Alfred Freiherr von Oppenheim
Chairman
Heinz Pferdmenges
Deputy Chairman
Alfred Milenz
Employee Representative
78
The Managing Partners
Matthias Graf von Krockow
Chairman
Detlef Bierbaum
Hans-Detlef Bösel
Johannes Maret
Christopher Freiherr von Oppenheim
since January 1, 2000
Dieter Pfundt
Hubertus Freiherr von Rukavina
since March 5, 1999

The resolution to be put before the Annual General Meeting will be for a dividend of 11% to be
paid to the limited liability shareholders.
Cologne, February 8, 2000
Appropriation of Profit
Appropriation of Profit
79

The following presents the certification of
the auditors for the consolidated financial statements
of the Group and Bank:
“We examined the annual financial statements
including the bookkeeping of Sal. Oppenheim
jr. & Cie. KGaA and the consolidated
accounts drawn up by the company along with the
management report on the company and the group
for the fiscal year from January 1, 1999 to December
31, 1999.
Preparation of the documents in accordance
with the requirements of German commercial law
and the additional regulations in the partnership
agreement are the responsibility of the company’s
management. Our task is to give, on the basis of
the audit conducted by us, an assessment of the
annual financial statements including the accounting
as well as of the consolidated accounts prepared
by the management and of its report on the
situation of the company and the group.
We conducted our audit of the annual financial
statements and the consolidated accounts
under Section 317 of the German Commercial
Code (HGB) and in compliance with the principles
for the proper conduct of audits established by the
Institut der Wirtschaftsprüfer (German Institute of
Auditors). Under these provisions the audit is to be
planned and carried out in such a way that any
Auditor’s Report
Auditor’s Report
80
errors and infringements that could impact significantly
on the overall picture of
➢ the assets, liabilities, and financial position,
➢ the results presented by the annual financial
statements and consolidated accounts in compliance
with the principles of proper accounting,
➢ the management report on the company
and the group are recognized with a degree of
certainty.
In establishing the audit actions the knowledge
of the business activity and of the economic
and legal environment of the company as well as
the expectations of possible errors are taken into
account.
In connection with the audit, the effectiveness
of the internal control system and verifications
for the information in the accounting, in the annual
financial statements and consolidated accounts and
in the management report on the company and the
group have been assessed largely on the basis of
random tests. The audit encompasses an assessment
of the accounting principles applied and the
main estimations of the management, as well as an
appraisal of the overall presentation of the annual
financial statements and consolidated accounts and
of the management report on the company and the
group. We are of the view that our audit forms a
sufficiently reliable basis for our assessment.
Our audit did not lead to any objections.
It is our conviction that the annual financial
statements and the consolidated accounts provide
a true and fair view of assets, liabilities, financial
position and results of the company and the group
Düsseldorf, February 14, 2000
KPMG Deutsche Treuhand-Gesellschaft
Aktiengesellschaft
Certified Public Accountants
Dr. Theelen
Wirtschaftsprüfer
Auditor’s Report
81
in compliance with the principles of proper
accounting. The management report on the company
and the group provides overall an appropriate
picture of the situation of the company and
the group and presents the risks entailed in future
development appropriately.”
Pukropski
Wirtschaftsprüfer

The Supervisory Board kept itself extensively
informed of the business policy, basic issues
facing executive management, corporate planning
and necessary investments at four meetings which
were held once each quarter.
The main topics discussed at the meetings
involved the bank’s new business strategy, outsourcing
of securities and derivatives settlement to
european.transaction.bank ag, as well as the sale
of the remaining shares in Rheinboden
Hypothekenbank AG to Allgemeine Hypothekenbank
AG. Furthermore, the Supervisory Board
kept itself continuously informed about the conversion
of systems to the year 2000.
The latest monthly balance sheet totals and
the profit and loss statement including explanations
for that particular quarter were presented at
each meeting. Individual questions were discussed
on a continuous basis with the managing partners.
In addition, the chairman of the Supervisory Board
was able to obtain a comprehensive overview of
the situation and earning position of the bank in
numerous meetings with the managing partners.
Before the meeting of the Supervisory
Board to review the financial statements, KPMG
Deutsche Treuhand-Gesellschaft AG, Düsseldorf,
presented its report. The report covered the financial
statements and consolidated financial state-
Report of the Supervisory Board
Report of the Supervisory Board
82
ments for the year ending December 31, 1999 and
the management report along with explanations.
KPMG had audited these documents and found
them to be in compliance with legal regulations.
They also reported on the main results of the audit.
The auditing company issued their unconditional
audit certificate.
The Supervisory Board has carried out its
own examination of the financial statements, the
management report, the recommendation for the
appropriation of profit, and group management
report.
Having concluded its examination without
objections, the Supervisory Board approves the
financial statements, the management reports, and
the allocation to revenue reserves, and it concurs
with the recommendation by the managing partners
for the appropriation of profit.
On March 5, 1999, Baron Hubertus von
Rukavina joined the bank as a further managing
partner. He assumed responsibility for the Private
Banking division from Graf von Krockow, who is
henceforth devoting himself mainly to his duties
as the chairman of the managing partners.
Furthermore, Christopher Freiherr von
Oppenheim became a managing partner as a
seventh generation representative of the Oppenheim
family on January 1, 2000. He will be managing
the Private Banking division along with
Cologne, March 22, 2000
The Supervisory Board
(Chairman)
Report of the Supervisory Board
83
Baron Rukavina. Moreover, he will be in charge of
risk management and compliance for the entire
bank.

SAL. OPPENHEIM JR. & CIE.
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 01
Fax +49 (0)221 145 1512
E-mail info@oppenheim.de
SAL. OPPENHEIM JR. & CIE.
Odeonsplatz 12
80539 Munich
Postal address:
Postfach 10 12 58
80086 Munich
Phone +49 (0)89 290 074 0
Fax +49 (0)89 290 074 29
E-mail privatkunden@oppenheim.de
OPPENHEIM CAPITAL MANAGEMENT
GMBH
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 01
Fax +49 (0)221 145 2975
OPPENHEIM FONDS TRUST GMBH
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 52
50467 Cologne
Phone +49 (0)221 145 05
Fax +49 (0)221 145 16 55
E-mail fonds@oppenheim.de
Addresses
Adresses in Germany
84
SAL. OPPENHEIM JR. & CIE.
Bockenheimer Landstraße 20
60323 Frankfurt am Main
Postal address:
Postfach 17 04 19
60078 Frankfurt am Main
Phone +49 (0)69 7134 0
Fax +49 (0)69 7134 5211
E-mail info@oppenheim.de
SAL. OPPENHEIM JR. & CIE.
Colonnaden 3
20354 Hamburg
Postal address:
Postfach 30 46 62
20315 Hamburg
Phone +49 (0)40 355 496 0
Fax +49 (0)40 355 496 11
E-mail privatkunden@oppenheim.de
NEPTUNO VERWALTUNGS- UND
TREUHAND-GESELLSCHAFT MBH
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 01
Fax +49 (0)221 145 1512
OPPENHEIM FINANZANALYSE GMBH
Unter Sachsenhausen 4
50667 Cologne
Postfachadresse:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 02
Fax +49 (0)221 145 2273
E-mail finanzanalyse@oppenheim.de
OPPENHEIM IMMOBILIENTREUHAND
GMBH
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 2600
Fax +49 (0)221 145 5443
OPPENHEIM VERMÖGENSTREUHAND
GMBH
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 2400
Fax +49 (0)221 145 2409
OPPENHEIM IMMOBILIEN-
KAPITALANLAGEGESELLSCHAFT MBH
Marie-Curie-Straße 6
65189 Wiesbaden
Postal address:
Postfach 11 04
65001 Wiesbaden
Phone +49 (0)611 9010 0
Fax +49 (0)611 9010 199
E-mail oik_gmbh_wbn@t-online.de
Addresses
INTERNET
www.oppenheim.de
85
OPPENHEIM VERWALTUNG VON
IMMOBILIENVERMÖGEN GMBH
Unter Sachsenhausen 4
50667 Cologne
Postal address:
Postfach 10 27 43
50467 Cologne
Phone +49 (0)221 145 2600
Fax +49 (0)221 145 5453
OPPENHEIM KAPITALANLAGE-
GESELLSCHAFT MBH
Unter Sachsenhausen 2
50667 Cologne
Postal address:
Postfach 10 27 44
50467 Cologne
Phone +49 (0)221 145 03
Fax +49 (0)221 145 2918
OPPENHEIM FORFAIT GMBH
Unterlindau 58
60323 Frankfurt am Main
Phone +49 (0)69 7134 5600
Fax +49 (0)69 7134 5614

BANK SAL. OPPENHEIM JR. & CIE.
(SCHWEIZ) AG
Uraniastrasse 28
CH-8022 Zurich
Phone +411 214 2214
Fax +411 211 1085
SAL. OPPENHEIM JR. & CIE.
LUXEMBURG S.A.
31, allée Scheffer
L-2520 Luxemburg
Phone +352 221 5221
Fax +352 221 522 600
SAL. OPPENHEIM JR. & CIE. KGAA
ZWEIGNIEDERLASSUNG LUXEMBURG
31, allée Scheffer
L-2520 Luxemburg
Phone +352 476 8221
Fax +352 476 822 680
Addresses
Addresses in Other Countries
86
OPPENHEIM INVESTMENT MANAGEMENT
INTERNATIONAL S.A.
31, allée Scheffer
L-2520 Luxemburg
Phone +352 221 5221
Fax +352 221 522 400
OPPENHEIM CAPITAL MANAGEMENT
GMBH
Zweigniederlassung Zürich
Kraftstrasse 31
CH-8044 Zurich
Phone +411 250 4747
Fax +411 250 4750
E-mail ocm@bluewin.ch
SPÄNGLER, OPPENHEIM
VERMÖGENSVERWALTUNGS-
GESELLSCHAFT M.B.H.
Stephansplatz 3a
A-1010 Vienna
Phone +431 5137 5630
Fax +431 513 756 340
SAL. OPPENHEIM JR. & CIE.
SECURITIES (UK) LTD.
Saddlers House, Gutter Lane
London EC2V 6HS
United Kingdom
Phone +44 171 600 2572
Fax +44 171 600 4834
OPPENHEIM INTERNATIONAL FINANCE
International House
3 Harbourmaster Place I.F.S.C.
Dublin 1
Ireland
Phone +3531 670 0560
Fax +3531 670 2356
MONTGOMERY OPPENHEIM LIMITED
International House
3 Harbourmaster Place I.F.S.C.
Dublin 1
Ireland
Phone +3531 670 2500
Fax +3531 670 2356
Addresses
INTERNET
www.oppenheim.de
87
SAL. OPPENHEIM JR. & CIE.
SECURITIES INC.
450 Park Avenue
New York, N.Y. 10022
Phone +1 212 888 5246
Fax +1 212 888 0916
LLOYD GEORGE MANAGEMENT
(HONGKONG) LIMITED
1 Exchange Square
Central
Hong Kong
Phone +852 2845 4433
Fax +852 2845 3911

Imprint
Publisher
Sal. Oppenheim jr. & Cie.
Kommanditgesellschaft auf Aktien
Unter Sachsenhausen 4
50667 Cologne, Germany
Design and Production
HANDWERK, Werkstatt für Kommunikationsdesign
Hamburg/Frankfurt am Main
Typesetting
Brückner & Neuner GmbH
63179 Obertshausen, Germany
Printing
Neiter & Kuhn GmbH
63546 Hammersbach, Germany
Sources of Photos
Title: Bernd Mayer; Pages 6–7: Michael Ehrhart; Pages
10–11: Stefan Büchner, Andreas Laible, Michael Stockmann,
Arch.-Büro Prof. U. Coersmeier, Michael Ehrhart;
Pages 20–21: Frank Darchinger, Clive Davis, Hausarchiv
Sal. Oppenheim, european.transaction.bank ag, Axel Gnad,
Novamedia-Gruppe; Pages 30–31: Bego Mario Garde,
fluxx.com AG, WEB.DE AG, Self Trade, Wedeco AG;
Pages 42–43: Frank Trier, Bollmann-Bildkarten-Verlag,
WERU AG, Kölnarena Beteiligungs GmbH, Brainpool-
Gruppe, EVOTEC AG, Tomorrow Internet AG; Pages 45,
47, 50, 51: Michael Ehrhart.
88

➢
Senior Executives

SENIOR EXECUTIVES
Chairman’s Office
Partners’ Secretariat
Dr. Johann von Behr
Asset Management
Divisional Managers
Dr. Bernd Borgmeier
Hermann Alexander Schindler
Senior Vice Presidents
Dr. Thomas Ebertz
Michael Henkel
Guy Stern
Vice Presidents
Alwin Beifuß
Michael von Brauchitsch
Carolyn Bunten
Hans-Gerd Engels
Franz Fuchs
Axel Gießelbach
Ernst Kerscher
Ferdinand-Alexander Leisten
Alwin Schenk
Karl-Heinz Schmidt
Hans Heinrich Spangenberg
Norbert Sulitzky
Uwe Teutsch
Dagmar Wasserheß
General Managers
Subsidiaries
Jürgen Becker
Siegfried A. Cafalka
Christel Enders
Gabriele Heiß
Heinz-Johann Heisterkamp
Christof Kessler
Peter W. J. Le Loux
Paul Montgomery
Donal O’Mahony
Marco Schmitz
Wilhelm Thommes
Jürgen Urbahn
Stephan Graf Walderdorff
Investment Banking
Divisional Managers
Wolfgang Jensen
Siegfried Piel
Helmut Zahn
Senior Vice Presidents
Manfred Caesar
Dr. Wolfgang Gerhardt
Michael Hegel
Jörg Letschert
Jochen Renz
Bernhard Rotter
Jochen W. Schmidt
Manfred Schütz
Vice Presidents
Reinhard Berben
Dr. Guido Bohnenkamp
André Bütow
Frank Deller
Achim Dörnemann
Dr. Gerhard Holtmeier
Richard-Alfred Höring
Michael Hubmann
Fred Iffland
Pia Jankowski
Jürgen Lange
Norbert Lipphardt
Dieter Lutz
Heribert Raskop
Stefan Ries
Rolf Sandfort
Albert Savelberg
Kersten Schmitz
Martin Siegel
Reiner Westenburger
Rosemarie Wieland
Matthias Wierlacher
Hans-Willi Wolber
Christoph Zwermann
General Managers
Subsidiaries
John W. Cahn
Stephanie Gaubatz
Dr. Katrin Kandel
Norbert Schulz
Private Banking
Divisional Managers
Wulf Matthias*
Senior Vice Presidents
Jürgen Anders
Klaus Ehler
Jens Heinneccius
Marc Ernst Hirtler
Dr. Christoph Hott
Ursula Juhnke
Hans-Joachim Kinle
Stephan Knichel
Wolfgang Munsche
Stefan Paul
Andreas Pichler
Dr. Klaus Wagner
Clemens Graf von Wedel
Vice Presidents
Hans-Peter Bandur
Ernst Otto Basse
Tobias Graf von Bernstorff
Ronald Böttcher
Hendrik von Engelmann
Rosa Göritz
Viviane Görlitz
Ulrich Hax
Olaf Heitplatz
Frank Hock
Dr. Claus-Dieter Lübcke
Paul Christian Recum
Rolf Röttgermann
Harald Wenzel
Andreas Winterberg
General Managers
Subsidiaries
Günter Grams
Ludwig Schubert
Iris Uhlmann
Andreas Otto Kühne
(Deputy Manger)
Bank Services≠
Chief Legal Adviser
Dr. Dieter Rehbein
Legal Adviser
Dr. Thomas Sonnenberg
Senior Vice Presidents
Dr. Sigurd Bünte
Hans-Jakob Haniel
Frode Henricks
Holger Kallewegge
Heinz-Josef Plum
Paul Porzelt*
Benno Röttgers
Ulrich Roth
Hans-Dieter Schollbach
Volker Senff
Manfred Uthoff
Lothar Wepler
Bank Services≠
Vice Presidents
Jörg Birkelbach
Franz Dahl
Sabine Decker
Wolfgang Hochwald
Friedhelm Hoffmann
Mark-Anthony Josefson
Dr. Hermann Jung
Rolf Kessler
Frank Klein
Rudolf Klostermann
Josef Koch
Thomas Kraus
Dr. Rüdiger-Michael Krautheuser
Ulrik Lackschewitz
Klaus Ley
Petra Meyer
Dieter Minderop
Edith Ollig
Werner Philipp
Ralph Plünnecke
Arno Radermacher
Frank-Alexander Rothauge
Dirk Schulte
Kristine Selbmann
Dr. Eva Strecker
General Managers
Subsidiaries
Norbert Braems
Gerard-Kim Dalby
Michael Klein
Dr. Youngjun Yoon
*Executive Manager

Sal. Oppenheim jr. & Cie. · Kommanditgesellschaft auf Aktien
Postfach 10 27 43 · 50467 Cologne