Presentation on theme: "Disclaimer Certain of the statements contained in this release are statements of future expectations and other forward-looking statements. These expectations."— Presentation transcript:
0 IPAA Private Capital Conference January 14, 2009 ING Capital – Natural Resources GroupCharles Hall, Managing Director
1 DisclaimerCertain of the statements contained in this release are statements of future expectations and other forward-looking statements. These expectations are based on management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements due to, among other things, (i) general economic conditions, in particular economic conditions in ING’s core markets, (ii) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, (viii) general competitive factors, (ix) changes in laws and regulations, and (x) changes in the policies of governments and/or regulatory authorities. ING assumes no obligation to update any forward-looking information contained in this document.
2 Presentation Topics ING -- Group Overview ING -- Current Financial ConditionING in the AmericasStructured Finance -- Natural ResourcesSelected TransactionsCurrent Market Conditions UpdateING Americas Natural Resources Group
3 A global leader in banking, insurance and asset management
4 ING Group – Chronology of Formation Formed by merger of Nationale Nederlanden and NMB Postbank198919911995199819992000200120022003200520072009NMB Postbank A global commercial bankMerged with Nationale Nederlanden A leading global insurance companyAcquired Barings plc Creating a leading global investment bankAcquired Banque Brussels Lambert Creating the largest commercial bank in the BeneluxAcquired BHF-Bank One of the largest publicly-traded German commercial banksAcquired Charterhouse A leading institutional agency of stockbrokers in the UKAlso acquired Aetna and Reliastar to become a leading insurer in the Americas and AsiaAcquired Bank Slaski Creating the largest foreign commercial bank in PolandIncrease of stake in Vysya Bank to 43.99%Acquired full ownership of Allgemeine Deutsche Direktbank AGAcquired 19.9% in Bank of Beijing 2nd largest city commercial bank in Chinaand 3rd largest bank in BeijingAcquired a strategic 30% stake in Thailand’s TMB BankExtending ING’s footprint in the fast growing Asian marketAlso acquired 100% shares of Turkish Oyak BankING Group A global financial institution
5 ING Group, a Leading Global Financial Institution Source: MSCI Bloomberg October 3, 2008
6 Financial Condition Update Summary Position through 3Q 2008
7 ING’s Credit Ratings S&P Moody's Fitch Ratings ING Group AA- Aa3 ING Insurance- Short termA-1+P-1- Long termING BankF1+AAAa2- Financial strengthBOutlookNegativeStable
8 Key Points -- Third Quarter 2008 Net profit of EUR 2,982 million for the first nine months of 2008, versus EUR 6,759 million for the first nine months of 2007Underlying net loss of EUR 585 million for 3Q08, on impairments of EUR 1.5 billionAll capital and leverage ratios well within target, even prior to transaction with Dutch StateEUR 10 billion purchase of core tier-1 securities by Dutch State in 4Q08 further reinforced capital buffersSound commercial performance despite difficult operating environment
10 Organized Across Six Business Lines ING GroupFinanceRiskInsurance EuropeInsurance AmericasInsurance Asia/PacificWholesale BankingRetailBankingINGDirectLife, non-life insurance and asset managementRetail and Private banking - Europe and AsiaOnline consumer bank mature countries
11 ING Provides a Full Range of Products ING’s lending product is used strategically to assist clients and support transactionsInsuranceRetail BankingWholesale BankingPrivate BankingAsset ManagementBridge LoansAcquisition FinanceStructured LendingLoan SyndicationsSecuritizationsInternational Trade & Export FinanceTransport FinanceLoan ProductsMergers & AcquisitionsDivestmentsStrategic AlliancesRestructuringValuationsTechnical AssistanceFairness OpinionsCorporate FinanceDebt Capital MarketsTreasuryFX, MM & DerivativesStrategic TradingFinancial MarketsING focuses on seven core sectors with dedicated global teamsSector Coverage and ExpertiseTransportationFinancial InstitutionsInfrastructureNATURALRESOURCESUtilities &PowerLeverage FinanceTelecom, Media& Technology
12 Structured Finance Natural Resources Sector Structured Finance is the specialized lending arm of Wholesale Banking within ING, providing clients with long-term financing needs through a broad range of lending products.
14 Structured Finance Natural Resources Sector-specific coverage on a global basisOil & GasUpstream:Reserve-based lendingField DevelopmentMidstream:Gathering / ProcessingPipelinesGas Storage FacilitiesOil & GasDownstreamRefineriesLNG Plants, Terminal & VesselsEthanol & Biofuel FacilitiesPetrochemical PlantsOffshore IndustryFloating Production/ Storage Systems (FPSO’s/FSO’s)Drilling RigsOil Field ServicesMetals & MiningMiningSmeltersSteel Works
15 Debt Underwriting in the Americas Integrated platform in the AmericasDomestic ServicesDomestic ProductsCross BorderUnderwriting1st Lien Senior DebtEuropean High YieldCommitmentTransaction ExecutionRevolver FacilitiesEuropean MezzanineAccess to NetworkSector Expertise2nd Lien Senior DebtAdvisory (Corporate Finance)High Yield/ Bridge LoanING is committed to offering a full product range to clients active in identified core markets
16 Global Syndication Capabilities A global platform with regional focusEurope49 ProfessionalsLondonAmsterdamAsia10 ProfessionalsAmericas12 ProfessionalsHong KongNew YorkSingaporeLocal point of contact for global access to ING products, extensive sector expertise and broad local network
17 Selected Upstream & Midstream Experience Strong track record in the USClosing June 2008Natural ResourcesUS11/07Enterprise Product Partners USD 1.8 bio5-Year Senior UnsecuredRevolving Credit FacilityCo-Lead ArrangerNatural ResourcesUS04/07Kinder Morgan IncUSD 7.3 bioSenior Secured Credit Facilities03/07Natural ResourcesUSBobcat Gas Storage LLCUSD 185 mioSenior Secured Credit FacilitiesSyndication AgentCo-Lead ArrangerNatural ResourcesUS03/07SG Resources Mississippi LLC USD 235 mioSenior Secured Credit FacilitiesNatural ResourcesUS12/06NorTex Gas Storage Co. LLCUSD 335 mioSenior Secured Credit FacilitiesCo-Lead ArrangerNatural ResourcesUS08/06Bluewater Natural Gas Holdings LLC5-Year Senior Unsecured Revolving Credit FacilityUSD 120 mioNatural ResourcesUS07/06Energy Transfer Equity LPUSD 650 mioSenior Secured Credit FacilitiesNatural ResourcesUS07/06Plains All American PipelineUSD 1.6 bio5-Year Senior UnsecuredRevolving Credit FacilityNatural ResourcesUS05/06Poseidon Oil Pipeline Co.USD 150 mioRevolving Credit FacilityNatural ResourcesUS03/06Pine Prairie Energy CenterUSD 320 mioSenior Secured Credit FacilitiesSyndication AgentNatural ResourcesUS10/05Targa Resources, Inc. USD 2.5 bioSenior Secured Credit FacilitiesNatural ResourcesUS05/05Wolfcamp Oil and Gas Trust USD mioVolumetric Production Payment Senior Secured Term LoanUS02/05Sabine Pass LNG L.P.USD 822 mioSenior Debt 10 Year Term Loan Facility for the Construction of Sabine Pass LNG Terminal in Louisiana.Natural ResourcesCo-Arranger & Co-Documentation AgentTrinidad/Tobego01/05National Gas Company ofTrinidad & TobagoTerm Loan Facility for theCross Island Pipeline ProjectNatural ResourcesUSD 200 mioMandated Lead Arranger & Underwriter
19 ‘Mad Max’ and the Banks ‘Moral Hazard’, well defined……. Good luck to the survivors….. and remember why you did.
20 ‘Credit Crunch’ -- Bank losses mount The second reason why some argue the ‘worst is over’ is that the banks are facing up to their problemsGlobally banks have written down $323bnAs you can see this is evenly split between the US and EuropeMoreover they’ve done nearly $250bn in capital raising…just over $60bn of this has come from Eastern investors and funds1: Capital being raised: $655.5bn (excludes TARP)2: Assets written down: $760.3bnAre we getting under this problem finally?
21 Credit market strains slowly abating Likewise, the CDS market is also beginning to register some decline in investment and speculative debtTheoretically calculated cumulative probabilities of default remain exceptionally high……relative to what has happened in the past……write backs possible
22 “When will life get back to the way it was?......” The $64 Question…….“When will life get back to the way it was?......”
23 What triggers a recovery in a loan market? Source: Reuters Loan Pricing Corporation
24 Interbank tension easing slowly Counterparty risk may also be abating slowlyInterbank spreads have been falling as bank lending guarantees are believed, and liquidity injections workStill a long way to go, but direction encouraging
25 Secondary Market - where’s the ‘Bid’? Average Secondary Spreads by RatingB LoansBB LoansAll BB/B LoansIncludes all priced facilities, excluding those in default. Assumes discount from par isamortized evenly over a three-year life. Excludes all facilities in default.
26 The Way ForwardFinancial services companies are facing unprecedented market volatility, limited liquidity, and intensified competition for deposits, which we see continuing into 2009.We are executing our strategy in the context of this challenging environment by focusing on growing client balances, while keeping a close eye on margins and expenses.We are containing our costs in mature markets.We continue to adapt our product range to meet our customers’ changing needs.We invest to expand our distribution in growth markets.
27 Americas Team - Natural Resources ING Wholesale BankingAmericas Team -- Natural ResourcesAmericas Team - Natural Resources
28 ING Wholesale - Natural Resources Group ContactsNatural Resources - Houston OfficeCharles E. HallManaging Director(713)Juli BieserDirector(713)Huma ManalVice President(713)Michael PriceDirector, Technical Services(713)Josh StrongAssociate(713)Natural Resources - New York OfficeRichard EnnisManaging Director & Head of Group(646)Michael ZanderManaging Director(646)Cheryl LaBelle(646)Subha PasumartiDirector(646)