Healthy focus
Following the results of the strategie review, three specifïc segments in global
healthcare have emerged as focus areas for Rl. The task ahead of our dedicated
people and the product specials who work with them is to come
up with the right prescriptions for medical equipment and device
manufacturers, pharmaceutical companies, and life sciences/biotech corporates.
Healthcare global business manager Dick Schulze explains.
Export solutions
Global strategy
System investment
Whdt S NewS Issue 10 December 1999 j ïlfO
Arefocus, but dear
commitment, to these
three industry segments
means that they have
been allocated to the busi
ness unit most suited to
building the best service
and offering for these
clients. The equipment
and pharma companies
have now hecome the re-
sponsibility of structured
finance, while (for obvi-
ous reasons) the life sci-
ences and biotech players
have found a neat niche
in our food and agribusi-
ness units. 'Let me start with life sciences
first,' says Schulze. 'This industry increas
ingly operates across food and agribusi-
ness, health, environmental and energy
sector lines. I think the fact that over the
Dick Schulze
past year we have been
increasingly successful in
generating M&A and
equity private place
mandates in hoth the US
and in Europe shows
that we have the kind of
insight into the sector
that customers recognize
as adding value.'
Although we've certainly
made an impression in
refocusing on health this and other selected
market segments, Schulze
stresses the need for firm strategies to ex-
pand business and grow earnings. 'And
while we are developing those strategies,'
he says, 'we should be continually alert to
opportunities and continue to pursue at-
tractive mandates. This is down to local
relationship managers, especially for ex
port finance deals. We are one of the few
global banks with a developed export
finance capability - and our focus on med
ical equipment obviously builds on that
expertise, but we can expand the offering
we have for these customers in a way
which creates a win-win situation for both
customers and RI. I'm thinking here of
offering solutions for exporters such as
ECA financing, insured receivable pro
grams, leasing, and so on. We have
product specialists in all these areas.'
The pharmaceutical side, like medical
equipment, falls under the structured
finance unit. Says Schulze, 'We have
proven expertise in cross-border and other
highly structured transactions. And this
can make us extremely attractive to
corporates of this kind. We believe we can
do much more business with this segment
on a transactional basis.' The healthcare
team is in the process of developing a
global stragegy for developing fee-
generating business with large pharmaceu
tical companies. 'We'11 be keeping the
network informed on developments and
especially on deals,' adds Schulze, 'so
that we maintain momentum in this chal-
lenging industry.'
>- Continued from page 7
team's strong performance has been
achieved despite a lack of infrastructure
development. Says head of RITM John
Geensen, 'Expenditure on IT has been
constrained by the Euro and millennium
embargoes. The development of new
products has been hampered by this lack
of investment, as has our delivery of high
quality services to customers. However,
the focus for 2000 is to concentrate on
those issues which have prevented the
business from realizing its full potential.'
In addition to the existing objectives
which rernain in play for STIR, the team
will be focusing on developing infrastruc
ture in its six major centres (Sydney,
Tokyo, Singapore, Utrecht, London and
New York). Adds Geensen, 'and our
investment will concentrate not only on
revenue enhancing measures, but also on
cost control in order to improve the
income/cost ratio which has been bud-
geted at 3:1 for 2000.'
On the EX side, significant advances have
also been achieved on original targets. Ac-
cording to Geensen, a rationalization of
FX activity management has provided a
platform 'allowing us to compete profes-
sionally with any other market partici-
pants in our chosen clients sectors.'
In addition, risk management has been
centralized and product distribution is
now localized. 'This enhances our ability
to implement one of our primary goals - a
knowledge based approach to customer
focused service. It also puts in place the
structure necessary to achieve a sales dri-
ven non-proprietary based revenue
stream. That is a prerequisite for low risk
income flows.' However, FX is not there
yet. Two key dependencies have been de-
fined in order to move activities along.
I ike STIR, FX needs investment in and
implementation of essential systems,
specifically a front to back options system.
'We also need to hire a number of deriva-
tive literate sales and trading staff,' says
Geensen. 'If we can put these elements in
place, then Rabobank FX can contribute
effective to bottom line profitability and
our goal of customer value will be
achieved.'
