Kein Folientitel

1

June 2005
Kommunalkredit Austria AG (KA)
THE SPECIALIST BANK FOR THE PUBLIC SECTOR
2
PresentationKommunalkredit Austria AG
AGENDA

• I Overview
  3
• II Business Profile
  6
• III Key Financial Figures
  15
• IV Funding 18
• V Summary
  27

3

• KOMMUNALKREDIT AUSTRIA (KA)
• Overview

4
Development of KA
KA is established as a special purpose bank to
provide long-term funds to Austrian municipalities
Crédit Local de France (DEXIA) purchases 26 of
the share capital
Kommunalkredit is entrusted with the management
of the Environmental Development Programmes on
behalf of the Republic of Austria
Kommunalkredit is assigned a long-term rating of
Aa3 by Moody's
DEXIA and KA sign a cooperation agreement on
common strategic moves
DEXIA increases its stake to 49
Kommunalkredit received a second rating by Fitch
AA-
Development of KA Covered Bonds with an
AAA-Rating by Moody's
The Austrian Association of Municipalities became
as a new shareholder
Foundation of Dexia Kommunalkredit Bank Central
Eastern Europe
5
Kommunalkredit at a Glance(as of March 31st 2005)
Strategy Specialist bank for the
Public Sector Ownership 50.78
Investkredit Bank AG
49.00 Dexia Credit Local
0.22 Austrian Association of
Municipalities Total Assets EUR 15,562
million Employees 233
Best Rating for a privately owned Austrian Bank
6

• KOMMUNALKREDIT AUSTRIA (KA)
• Business Profile

7
Business Profile
Kommunalkredit Public Consulting (KPC)For the
central government and provinces
Lending to the Public Sector Treasury
Asset Management for the Public
Sector Kommunalkredit Dexia Asset Management
Custody Business Kommunalkredit Depotbank
International Strategy Dexia Kommunalkredit
Holding GmbH and KIB
8
Lending to the Public Sector Our Core Competence
Lending to the Public Sector Our Core Competence

• A Wide Range of Products and Services
• Long-term infrastructure finance with maturities
  of up to 25 years through plain-vanilla or
  structured products
• Project finance (public-private partnerships,
  etc.)
• Cross-border transactions
• Municipal real-estate leasing
• Factoring
• Debt restructuring with derivatives
• Private placements
• A Leading Position in
• Sale of loans by the Austrian Government and
  Federal provinces
• Long term structured loans to public authorities

9
Lending to the Public SectorAsset Portfolio

• Breakdown as of March 31, 2005
• Austrian public authorities 41.1thereof 15
  Republic
• 42 Provinces
• 43 Municipalities)
• Foreign public authorities 31.3 thereof 66
  government risk or indirectly
• supported similar to "Finanzausgleich"
• Financial institutions 13.3
• Non-financial institutions (local government
  enterprises) 14.3
• thereof 56 guaranteed by public sector)
• ) effectively government support through
  "Finanzausgleich" (revenue sharing system)

69 with direct or indirect government guarantee
10
Lending to the Public Sector Austrian Fiscal
Adjustment Act"Finanzausgleich"

• Guarantees stability of revenues
• Secures the distribution of tax revenues from the
  federal state to the municipalities and provinces
• Prevents excessive indebtedness of
  municipalities
• Indebtedness is only allowed with approval of the
  supervisory authority
• if repayment schedule is in accordance with the
  financial strength of the municipalities
• Strengthens economically weak municipalities
• Adjustment process favours economically weak
  municipalities which are being placed under
  supervision of the province if they get into
  financial difficulties

No insolvent province and municipality since 1945
11
Lending to the Public Sector Economic Comparison
Austria, Germany and EU Key Indicators
2004
Austria
Germany
EU 25
Population mn
8.1
82.5
458.6
1
GDP EUR bn
230.6
2.162
9.988
GDP per Capita (Index, EU100)
122.3
108.1
100.0
Real GDP growth 2003 in
0.8
- 0.1
1.0
Real GDP growth 2004 in
1.0
1.6
2.4
Real GDP growth 2005 in
2.1
0.8
2.0
Inflation in
2.0
1.8
2.1
Unemployment Rate in
4.5
9.5
9.0
General Government Balance in of GDP
- 1.3
- 3.7
- 2.6

1
at constant prices
Source European Commission Spring 2005
12
Lending to the Public SectorLoan Loss Provisions
Write-offs in
Provisions in EUR mn
Provisions
Average write-offs lt 0,01 of Asset Portfolio
13
Kommunalkredit Public ConsultingConsulting
Activities
Management of the Federal Environmental
Development Programmes on behalf of the Republic
of Austria Guidance in restructuring the budget
on behalf of Austrian Ministry of Finance in
pilot municipalities (Maastricht
Project) Management of the Kyoto-Programme for
the Austrian Federal Government By mandate of
the Austrian Ministry for Foreign Affairs -
Management of environmental projects in Eastern
Europe - Financial administration of the Federal
support for Developing Countries Cooperation
with International Financing Institutions
(European Union (PHARE/TACIS), EBRD, World Bank
and UNOPS)
14
International Strategy(Dexia Kommunalkredit Bank)
New subsidiary in Bulgaria in course of
formation Setting-up in Romania now starting
Creating an European player together
15

• KOMMUNALKREDIT AUSTRIA (KA)
• Key Financial Figures

16
Kommunalkredit Austria2000 2005 (IAS)
31-12-2001 EUR mln
31-12-2002 EUR mln
31-12-2003 EUR mln
Change/ share in
31-12-2004 EUR mln
31-05-2005 EUR mln
Claims against customers
3,257.5
4,578.9
6,001.3
13.8
7,616.5
8,667.6
Financial Investments
1,461.3
2,348.4
2,914.9
26.1
5,165.2
6,513.4
Total assets
5,026.9
7,375.4
9,755.9
21.6
14,168.6
17,230.2
Earnings before taxes
17.9
28.1
33.6
59.7
38.0
22.7
Earnings after taxes
17.5
20.6
26.3
59.4
32.0
19.0
23.9
24.8
20.5
23.1
Return on equity before taxes
17.7
Return on equity after taxes
17.4
17.5
19.4
17.3
19.4
47.5
49.2
Cost-/Income-Ratio
48.2
49.9
37.7
Tier 1 Ratio
12.7
9.9
9.5
10.8
8.7
Total Capital Ratio
19.2
18.0
11.6
17.0
12.8
as of May 31st 2005
17
Total Assets and Earnings after Taxes
EUR mn
EUR bn
Earnings before taxes
Total Assets
2004
EUR Mio.
1997
1998
2000
1999
2001
2002
2003
31-12-2005
1,506.5
Total Assets
1,091.9
3,363.1
2,219.1
5,026.9
7,375.4
9,755.9
14,168.6
15,562.0
Earnings after taxes
3.7
5.4
10.2
6.7
17.5
20.6
26.3
32.0
12.5
Earnings after taxes already 39 of 2004
18

• KOMMUNALKREDIT (KA)
• Funding

19
Funding Sourcesas of 31-05-05
As a specialised bank our main funding source is
the capital market
14
Interbank Market
4
5
Other Liabilities
Customer Deposits

77
Bonds
EUR 12.2 bn bonds outstanding
20
Capital Market Fundingas of 31-05-2005
Main Sources Kommunalkredit Covered Bonds
(KACB) Senior Unsecured Bonds Private
Placements
Distribution Breakdown
Market Breakdown
31.0


21
International Public Bond Issues
mn
EUR 4 1/2 CB
EUR 3 1/2 CB
EUR 3 1/4 CB
FRN
Fixed Note
Covered Bonds
EUR FRN
EUR FRN
Volume
EUR 5 1/4
CHF 2 CB
CHF 3 CB
EUR FRN
EUR FRN
Sep 05
May 07
Apr 10
Jul 06
Sep 07
Mar 10
Sep 13
Mar 09
Feb 14
Feb 15
Aim to build up a curve with liquid bonds
22
Structured Private Placementsas of 31-05-2005
Structured Private Placements issued under
Kommunalkredit Austria's MTN Programme
2.5
Others
21.4
CMS Linked
18.7
Zeros

10.3
10.4
Inverse Floater
FX Linked
1.80
Inflation Linked
14.0
17.9
Index Linked
Interest Rate Linked
3.0
Range Accruals
23
Issues Outstandingas of 30-06-2005
Currency Breakdown
Maturity Profile
Others


24
Kommunalkredit Austria'sDebt Issuance Programme
Arranger
Deutsche Bank AG
Size
EUR 14,000,000,000
Notes
Covered, senior unsecured and subordinated
Currencies
All currencies
Listing
Luxembourg and/or as otherwise agreed for each
issue
Governing Law
German Law

Reverse Inquiry Clause
Yes
25
Funding Strategy

• About half of annual funding requirements a
  year in International Public Bond Issues to
  increase our name recognition
• Covered Bonds, FRN and Fixed Rates Benchmarks
  to broaden investor base
• Further increase of proportion of structured
  issues
• Efforts to make tailor-made investment
  instrument available to our investors
• Support Funding Strategy with investor relations
  activities

26
Investor Relations (Roadshow Destinations)
EUROPE
Amsterdam Basel Brussels Budapest Copenhagen Dubli
n Frankfurt/Main Geneva Helsinki Koeln London Luxe
mbourg
Madrid Munich Oslo Paris Prague Riga Stockholm Ta
llinn Trieste Utrecht Zurich
ASIA
Hong Kong Macau Singapore Taipei Tokyo
27

• SUMMARY

28
Why invest in Kommunalkredit?
Success by special strategy main focus on the
Public Sector Strong market share in our core
business Public Sector Lending - a low risk
activity Good asset quality reflected by low
level of write-offs lt 0.01 write-offs
Part of our activities are managing of Public
Trusts, Consulting Assignments for the Public
Sector, managing of promotional business High
profitability through the application of
innovative special products (e.g. Structured
Finance, PPPs) European niche player with
strong support through cooperation with DEXIA
29

• CONTACT LIST

30
Contact List
Phone
431/ 31 6 31-
CEO Chairman of the Executive Board
Reinhard Platzer
100
Deputy Head of Treasury Funding
Thomas Fendrich
640
Treasury Funding
Ingrid Rappold-Mellitzer
635
fax
505
Kommunalkredit Austria AG
e-mail
funding_at_kommunalkredit .at
Tuerkenstraße 9, A-1092 Vienna
31
www.kommunalkredit.at
Bloomberg KA Reuters KA