Welcome to Rabobank 20 June 2013
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Welcome to Rabobank
20 June 2013
Fieldtrip Chinese University of Hong Kong
1
Program Thursday 20 June 2013
Timetable
09.00-09.15
Arrival and brief introduction
09.15-10.30
Presentation
Biography René Steenhart
Background and history Rabobank
How does Cooperative bank operates in its business?
System in Rabobank’s culture to sustain its continuity
Competition and its resilience during the crisis
Rabobank in Asia since 1986
Core competence – Food & Agribusiness
Biography Cyrille Filott
Wholesale Strategy
Rural Strategy
Food & Agribusiness Research and advisory
10.15-10.30
Discussion (Q&A)
10.30-11.30
Tour at the Plaza
11.30-11.50
Close remark, Souvenir, Group Photo & Lunch boxes
2
Biography René Steenhart
Joined Rabobank in 1990, starting within the
Back Office and Finance area of the Bank’s retail operations.
Moved to Rabobank International in 1998 at it’s Head Office
in Utrecht, The Netherlands.
Held since 1999 various management positions in Wholesale Operations.
Appointed Head of Global Financial Markets Operations in 2004 and in 2008 he
took up a position as Global Head of Operations which he currently holds.
COO Asia since 2010
3
Background and history of Rabobank
Friedrich Wilhelm Raiffeisen
Founder of the very first agricultural co-
operative bank in Germany in 1864.
In 1898, six co-operative banks established the Coöperatieve Centrale
Raiffeisen-Bank in Utrecht and 22 banks laid the foundation for the
Coöperatieve Centrale Boerenleenbank in Eindhoven.
1996 Het Centrale Bankbedrijf, a division of Rabobank The Raiffeisen-Bank and the Boerenleenbank
Nederland, continues its activities as Rabobank merged in 1972 to create the Coöperatieve
International and focuses specifically on larger Dutch Centrale Raiffeisen-Boerenleenbank - CCRB. It
companies and on the international food & agri business Known as Rabobank due to the first two letters of
both banks.
In the course of the 1970s, Rabobank’s business customers began to have an
increasingly greater demand for international services. Rabobank has
consequently taken measures to ensure it can serve its customers
internationally.
4
Background and history of Rabobank
Organisation structure
10 million clients
1.9 million members
139 local autonomous
cooperative
Rabobanks
Rabobank Nederland
specialised divisions and
subsidiaries
5
Rabobank is a strong and successful bank…
60,000 staff
Market share NL 30-45%
Present in 43 countries Agriculture & horticulture 85%
700 Branches
2.1 billion euros nearly 60,000 employees
Net profit worldwide
Over 10 million
clients worldwide
752.4 billion euros
in assets
Tier-1 ratio of 17.2%
Ratings May 2013
Standard & Poor’s AA-/stable/A-1+ Members NL 1.918
Moody’s Aa2/neg/P-1 (x1000)
Fitch AA/neg/F1+
Information correct as of 31 December 2012 6
How does Cooperative bank operates in its business?
Rabobank Group Strategy
Predominantly Dutch bank
Strong cooperative identity
All-finance-leadership position in the Netherlands
Global position as the number 1 food & agribusiness bank in a selected number of countries
Creditworthiness at the highest level
High level of corporate social responsibility
7
System in Rabobank’s culture to sustain its continuity
Cross-Guarantee system
De Lage
Landen
Rabobank Schretlen
Nederland & Co
Rabo Mortgage
Banks
Local Rabobanks
8
System in Rabobank’s culture to sustain its continuity
Culture and Corporate Values
Rabobank is complying with most of the rules, business principles and ethics currently required
by the public and politicians.
Financial Cooperatives always had to take the interests of many stakeholders into account in
their decisions and to pursue a low risk business model with a strong retail orientation.
Their remuneration schemes do not focus on short-term economic performance but on
sustainable and long-term business targets.
As a result Rabobank entered the crisis with solid liquidity and capital buffers which largely
explains why we came through the storm relatively well.
9
Competition and its resilience during the crisis
Chart - Customer Advocacy in Dutch Banking
1.Capital buffer
2.Structure, culture
3.Trust of our customers
Source: Forrester.
Explanation: customer advocacy is derived from answers to the following
statement: “My main bank does what’s best for me, not what’s best for its
profits at my expense.” It concerns the percentage of respondents who agree
or strongly agree with this statement regarding their main or primary bank.
10And...
Rabobank Foundation
The support provided by the Rabobank Foundation reflects Rabobank’s unique history
and roots and is consequently focused first and foremost on enabling the development
of small co-operatives located in rural regions. This support is provided through
donations, loans, trade financing and technical assistance.
Rabobank Development
Rabobank took the initiative in 2005 to begin developing banks in a number of
developing countries based on the example of Rabobank in the Netherlands. While
these banks do not necessarily have a co-operative structure, they do focus on rural
areas as their market.
Rabobank is focusing on the long-term development of partner banks and less on
short-term profitability.
In line with Rabobank’s Roots, Culture and Context and Purpose
11Rabobank in Asia since 1986
Offices in China, Hong Kong, Indonesia, Malaysia and Singapore
India Hong Kong
Wholesale Banking Branch since Nov 2011 Regional Headquarters
NBFC since 1998, primarily term lending Fully licensed bank established in 1990, offering
based comprehensive suite of wholesale banking and advisory
services in North East Asia
F&A Private Equity Fund
1.2% stake in YES Bank China
RIAS advisory mandate Present since 1995
Beijing
Rabo Foundation Full branch license in Shanghai since 2003
and Beijing Rep Office converted to
Shanghai Branch since 9 March 2012
9% stake in United Rural Cooperative
New Delhi Bank of Hangzhou
Gurgaon Strategic Co-operation Agreement with
Kolkata Hong Kong Agriculture Bank of China
Taiwan covered from Shanghai
Mumbai
Indonesia
Bangalore Integrated Wholesale and Retail Banking
services with over 90 retail branches
Singapore & Malaysia Kuala Lumpur
Rabo Foundation
Comprehensive suite of wholesale banking and advisory Labuan
Singapore
services with Branches in Singapore (since 1986) and
Labuan and Marketing Office in Kuala Lumpur
Wholesale product hub for South East Asia
Jakarta
Thailand, Philippines and Vietnam covered from Singapore
12Greater China Five-Year Objectives- Geographical Footprint
Greater China
F&A Potential in China are largely
concentrated in Southern, Central, and
Northern Parts.
Beijing
Shanghai
Current Geographical Footprints are
adequate to provide coverage to the
markets.
Hong Kong • Beijing – Northern Part
• Shanghai – State-owned Enterprises and
Central Part (Shandong)
• Hong Kong – Southern Part (Guangdong,
Henan, Fujian)
Hong Kong to provide the product support for
Greater China region.
No Immediate Needs to Expand
Geographical Coverage
13China has 562 players with sales above $USD200 mln in 2010
• China F&A maturity is still very uneven among the core sectors
• Further consolidation will continue to emerge F&A giants
150
100
143
50
94 91 89
61
52
15 17
0
Animal Grains and Farm Inputs Dairy Sugar Beverage VAP Others F&A
Protein Oilseeds
14Some pressure points....
Local Autonomous Governance
• Regulatory Difficulties
• Cost
• Business Case
Public opinion on Banks
Euro zone troubles
15Core competence – Food & Agribusiness
Breakdown F&A portfolio Group total EUR 92 bn
• Portfolio EUR 92bn (+5%)
• Well diversified
• 20% of group portfolio
• Domestic market share 85%
16Core competence – Food & Agribusiness
Breakdown non-F&A portfolio Group total EUR 146 bn
• Group portfolio EUR 146 bn
• Well diversified
• 32% of Group portfolio
17Food & Agribusiness: Rabobank’s
core competence
20 June 2013
1Biography Cyrille Filott
Cyrille Filott is Head of Rabobank’s Food & Agribusiness
Research and Advisory (FAR) department for Europe &
Africa.
Cyrille is a business economist with a great deal of
experience in fund management and equity research. He
was head of the Beverages & Dairy research team at FAR for
a year before taking up the role as head of Europe & Africa.
Before joining Rabobank in 2008, he worked as a fund
manager at ING Investment Management in The Hague and
at M&G Investment Management in London.
Cyrille earned a Master’s degree in Economics from Erasmus
University in Rotterdam. He also holds a VBA designation.
19Rabobank International – focus on F&A ONLY
Domestic distribution
Retail &
Farm inputs Farming + Processing
Export & trade
foodservice
Rural & Retail Wholesale
• Top 3 position in local farm debt market • Market leader in The Netherlands
• Performance improvement current operations • Leading global F&A bank
• Clients at the kitchen table • Clients at the boardroom table
• Synergies where possible • Leveraging benefits of scale
Changing Environment
Rural bank value
proposition
Member Banks
Branch based
Rural banking
deposits
Asset and Liability
Management
Market leadership in Leading global
the Netherlands F&A bank
Farmer finance Direct banking (pillar I) (pillar II)
deposits
Leveraging specializations and benefits of scale
Wholesale funding (pillar III)
Enabling Factors:
Governance, HRM, Product development, ITOPS, Processes,
Risk and Portfolio management, Finance and Control, Foundation
Branding & communication, Performance management
20Wholesale Strategy
1Coverage throughout the F&A Chain
F&A Support
Packaging, bottle manufacturing, warehouses, logistics 8
Dom distr. Processing Processing Retail &
Farm inputs Farming
export trade low value add high value add Foodservice
1 2 Dairy 6 Beverages
Farm 3 Sugar
Beer, spirits,
inputs Grains & Oilseeds soft drinks, wine,
4
coffee, tea
• Farm Animal Protein Food retail
5
machinery Foodservice 8
• Fertiliser 7
Fresh Produce Value added
• Farm Processing
chemicals Cotton, Wool 8
• Veterinary
Confectionery,
services Forest Products bakery, chilled,
• Feed
frozen, ambient,
additives/
Commodity Traders biscuits, breakfast
premixes
cereals, snacks
Packaging
22Global presence
Antwerp Utrecht
Dublin Warsaw
Chicago London
Toronto Frankfurt
Paris
Milan Istanbul
San Fransisco New York Madrid
Beijing
Atlanta New Delhi Shanghai
Dallas
Hong Kong
Mexico City Mumbai Kolkata
Singapore
Jakarta
Sao Paulo
Santiago
Sydney
Buenos Aires Wellington
Melbourne
23Rural strategy
1Rural & Retail Banking
The funding pillar The F&A Pillar Community Pillar Rabo Development
Direct Banking Rural Banking Retail Banking
Developing banks in
“The straight talking Focused on offering Services the full rural areas in a number
online bank” financial solutions for spectrum of retail and of developing countries
the specific needs of SME clients in rural based on the example
Attracting retail areas. Besides of Rabobank in the
deposits from leading farmers in a
selected number of providing the products Netherlands.
metropolitan areas and services our clients
through a Direct Bank countries
need, we engage with
proposition their community.
25
25Rural & Retail Strategy Map towards 2016:
Self Funded, Self Financed, Cooperative Body & Soul
Global trends Drivers Positioning Execution Contribution
Sustainable Results
Strengthen current F&A
countries
Leading F&A Bank
Capitalize on the Focus, Deliver what we
Rabobank group promised, Be in Control, develop Rabo Development
Food Security core (F&A) our employees, Stakeholder Financial Inclusion
competencies Management & Synergies
We offer financial solutions Self Financed
Investing in IDB growth
Capitalize on Retail based on a long-term
Funding Banking & IDB Optimizing Retail branch Self Funded
relationship committed to
Diversification & Funding platforms network & Contribute to
Regulation the specific needs of the Group Funding
leading farmers and their Remain nearby!
communities in a selected Ready for the next
Capitalize on IDB Mobile concept generation of
number of key F&A consumers
Virtualization web2.0 capabilities
countries. Virtual Farm Concept
Customer & F&A
Capitalize on Deepen customer relationships centric business
Rabobank by enhancing our core model
Trust in banking cooperative body & Rabobank value proposition True to our
is shaken 26
cooperative roots
soulRural & Retail footprint
ACC
BGZ
370
9
RAF
138
RNA
15
Finterra
8 60
33
Brazil
Rabo RAG
Chile Development
27Food & Agribusiness Research and
advisory
Knowledge as key differentiator
1Food & Agribusiness Research and Advisory
Profound Sector Knowledge
FAR analyses F&A companies
FAR provides in-house F&A knowledge to Rabobank’s management, relationship managers, credit analysts and other departments. In every major F&A sector a selected
number of companies is monitored closely
FAR is a regular speaker at F&A conferences
Rabobank is active in numerous F&A conferences around the world. The conference activities demonstrate the bank's commitment to and involvement with the F&A
business worldwide
FAR is advisor to F&A companies
FAR uses its extensive knowledge of F&A sector trends and corporate strategies to play an advisory role to its existing and prospective clients: in M&A pitches, in
strategic discussions with the management of companies and in paid advisory mandates such as Growth strategies, Country entry strategies, Repositioning
strategies, Feasibility studies and Co-operative strategies
FAR Publications
The department's numerous publications mirror the bank's extensive knowledge of F&A sector trends and corporate strategies. FAR’s publications include extensive
publications (F&A Reviews), short and topical publications (Industry Notes), Country Banking reports for the retail market and World Maps - that offer both global and
local perspectives
29Our business thought leadership
30FAR’s goal -> Impact
Clients
Industry
organisations IMPACT General
public
Rabobank
31Team of 80 professionals in 13 different countries;
A truly Global Team
32Questions?
33You can also read
