IKB Deutsche Industriebank Aktiengesellschaft IKB FINANCE B.V.

SUMMARY
The following constitutes the summary (the “Summary”) of the essential characteristics and risks
associated with the Issuers, IKB Deutsche Industriebank Aktiengesellschaft as guarantor of IKB
FINANCE B.V. and the Notes to be issued under the Programme. This Summary should be read as
an introduction to this Prospectus. Any decision by an investor to invest in the Notes should be
based on consideration of this Prospectus as a whole, including the documents incorporated by reference,
any supplements thereto and the relevant Final Terms. Where a claim relating to the information
contained in this Prospectus including any document incorporated by reference, any supplement
thereto and the relevant Final Terms is brought before a court, the plaintiff investor might, under the
national legislation of such court, have to bear the costs of translating the Prospectus, any document
incorporated by reference, any supplement thereto and the relevant Final Terms before the legal proceedings
are initiated. Civil liability attaches to those persons who have tabled this Summary including
any translation thereof, and applied for its notification, but only if the Summary is misleading,
inaccurate or inconsistent when read together with the other parts of this Prospectus.
The following Summary does not purport to be complete and is taken from and qualified in its
entirety by the remainder of this Prospectus and, in relation to the terms and conditions of any particular
Tranche of Notes, the applicable Final Terms.
Summary of Risk Factors regarding IKB AG
IKB AG has identified and defined the following risk categories as more fully set out in the information
regarding IKB AG’s risk factors.
1. Counterparty and credit risk
Credit risk defines the risk that a loan cannot be repaid at all, or can only be partially repaid (in line
with contractual agreement), in the case of default by a contractual partner. IKB AG is exposed to
counterparty risk as a consequence of potential replacement risks related to interest rate and currency
derivatives, which may be incurred in the event of counterparty default.
2. Market and liquidity risk
IKB AG understands market risk as the interest rate, currency and price risks to which equities and
other assets are exposed.
IKB AG distinguishes two types of liquidity risk: the risk that current or future payment obligations
cannot be met on time, or in full; and the risk that required funding can only be obtained at unfavourable
market conditions.
3. Country risk
The country rating is the key concept employed to assess and manage country risk. IKB AG’s
country risk exposure is managed by using limits.
4. Operational risk
As defined by the Basel Committee on Banking Supervision, operational risk is the threat of loss
resulting from inadequate or failed internal processes or systems, from human error, or from
external events or disasters.
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IKB AG also includes legal risk under operational risks; this is defined as the risk of loss incurred
through new legal regulations, changes to existing legal regulations as well as interpretations of
new or existing legal regulations that are disadvantageous to IKB AG. IT risks focus on the meas-