KfW IPEX-Bank very successful in 2010

- EUR 9.3 billion in new commitments to support the German and
European export industry
- Net income of EUR 145 million for KfW IPEX-Bank GmbH
- EUR 889 million as outstanding contribution to the consolidated
earnings of KfW Bankengruppe and to ensuring KfW’s promotional
capacity
- Focus in 2011: Accompanying domestic enterprises in global markets

KfW IPEX-Bank completed the past financial year with clearly positive
numbers. The new commitments of the specialised financier increased
slightly in 2010 over the previous year to EUR 9.3 billion (2009: EUR
8.9 billion). The volume was comprised of EUR 8.3 billion in new
commitments from the original credit business and an additional EUR
1.1 billion from bank funding from the ship financing CIRR
(Commercial Interest Reference Rate), a mandated business for the
federal government.

In 2010 KfW IPEX-Bank achieved an overall result before taxes of EUR
179 million. After subtracting taxes of EUR 34 million, KfW IPEX-Bank
had a net income amounting to EUR 145 million. This enabled the
complete recovery of the loss carried forward from the previous year
amounting to EUR 85 million and the replenishment of the capital
contribution of silent partner amounting to EUR 55 million.

With EUR 889 million in 2010 the business area Export and Project
Finance, for which KfW IPEX-Bank is responsible, was able to make an
outstanding contribution to the consolidated earnings of KfW
Bankengruppe compared to previous years. KfW IPEX-Bank thereby
confirmed its role as a generator of earnings for KfW Bankengruppe –
and made an important contribution to KfW’s promotional capacity.
This high value is also exceptional in terms of the long-term
average. It is explained by a number of individual effects, however
it is mainly due to the significantly lower risk provisions in the
reporting year, whose costs were greatly reduced as a result of the
stabile risk structure in the credit portfolio.

In the previous year, KfW IPEX-Bank concentrated on its mission to
strengthen the German and European economy over the long-term and on
its core competencies as project and export financier. “The year 2010
had its own, unique set of dynamics for our business. On the one
hand, it was characterised by the aftermath of the financial crisis.
On the other hand, the economy recovered noticeably, particularly in
the second half of the year. Our bank decisively used the
opportunities that arose from this recovery” writes the Management
Board in the Forward of the 2010 Annual Report, which is being
published today with the financial statements.

In the future, the Management Board of KfW IPEX-Bank will focus on
the lines of business where it has many years of experience and
comprehensive know-how, namely, support for the German and European
export industries, financing of means of transport, infrastructure
investments, projects related to global environmental and climate
protection, and projects that secure the supply of raw materials. “We
expect the largest growth surge in the areas of energy, environment
and manufacturing industries”, says Harald D. Zenke, Speaker of the
Management Board, with an eye towards the export project business in
industrialising countries. “Thanks to the know-how in KfW
Bankengruppe and the contacts developed over many years, we can
enable SMEs to export to countries that they had not considered
before”, continued Zenke. On the basis of the economic conditions
described above, in 2011 KfW IPEX-Bank anticipates a new business
volume in the business area Export and Project Finance of around EUR
8.6 billion in its original credit business.

Annual Report 2010

In the Annual Report published today you will for the first time also
find the Corporate Governance Report, to which KfW IPEX-Bank has
voluntarily committed itself. You can view and download the Annual
Report on our website: www.kfw-ipex-bank.de.