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40 SEGMENT REPORTING / CORPORATES
CORPORATES
Structure
The corporate segment consists of Investkredit
Bank AG as the Bank for Corporates, Investkredit
International Bank p.l.c., Invest Mezzanine Capital
Management, Europa Consult
CORPORATES – and additional companies that
INVESTKREDIT GROUP’S
manage investment transac-
CORE SEGMENT
tions on behalf of companies.
There were 246 employees
(49% of the Group) as at year-end 2004 in the corporate
segment.
Business approach
Owing to a rising demand from companies for differentiated
financing solutions tuned to their
specific needs, capital market instruments,
specialist instruments, such as mezzanine capital,
but also innovations in
OPTIMISING CORPORATES’ traditional, loan-oriented cor-
CAPITAL STRUCTURE
porate lending, have gained in
importance as an alternative
to the long-term loan. However, this broadened
spectrum and increased complexity of instruments
ALIGNMENT OF INSTRUMENTS WITH CORPORATE BALANCE SHEETS
Asset management
Intangible and
tangible assets
Financial investments
Current assets
place significantly higher demands on banks in
respect of their structuring and financing
know-how. Investkredit was quick to take
account of this development and built up an extensive
range of modern financing alternatives to
offer alongside classical financing. It is accordingly
in a position to offer overall solutions corresponding
to the specific needs of its customers and
contributing to the optimisation of companies’
capital structure. Capital structure management
is the name given to the process of optimising the
quality and costs of a company’s capital by actively
structuring the source and application of funds
side of its balance sheet. The structure of the corporate
balance sheets accordingly reflect Investkredit's
services in the corporate segment.
In the year under review, there was a substantial
organisational change. Structured finance is now
integrated into the corporate
lending department. For the NEW STRUCTURE FOR
GIVING SUPPORT TO
first time, this unites market,
CORPORATES
customer and product responsibility
for all corporate lending
instruments into one department. Supplemented
by Treasury services, the entire range of services
can now be offered as required and in a customer-
ASSETS LIABILITIES AND EQUITY
Derivatives
Own funds
Other equitylike
liabilities
Long-term outside funds
Short-term outside funds
Interest-rate and currency management instruments
Equity
financing
Mezzanine
financing
Loan financing
Corporate bonds
Mittelstandsbonds
Securitisation
of trade
receivables (ABS)