RI's game plan
organization operations
How wedid last year...
Financial highlights 2000
The recent past has seen a turbulent few years in Rabobank
International's (Rl) relatively young history. But the turbulent days are
well and truly over and it's time to put what we have learned into pur-
suing our corporate goals. That is what's in the positioning paper on the
table. We aim for an efficiënt organization. While focusing on familiar
sectors, we work towards a smaller and better Rl, allowing for new
opportunities throughout the network.The operating model is there to
create an environment of teamwork for successfully doing
so. Now it is down to you,the international Rabobankers
around the world, to make it happen. Here's how.
Familiar banners
Improved performance
2 What'sNewS Insert March/April 2001
Rik van Slingelandt
in November last year. It
comprises rhree drivers:
create value through
tailored solutions
for Rabobank Group and
its ciients, corporates in
selected industries and
financial institutions
focus on originating, structuring,
placing and trading specific financial
instruments.
Comments Rik van Slingelandt, '1 think
these drivers pretty much sum up what we
In the last couple of years we have all ex-
perienced some serious turmoil, as illus-
trated by investment banking initiatives,
the merger process with DG Bank and
various changes in senior management.
Upon the decision late 2000 to not pursue
the merger with DG, the Managing Board
visited the regional hubs and some of the
larger offices to explain the business case
for Rl. These visits marked the end of
quite some turbulent years and the start of
a consistent business drive going forward.
The business case was incorporated into
what became the positioning paper, as
developed in the first quarter of 2001
There aren't really any surprises in the po
sitioning paper. Custonrer focus remains
the key to everything we do, with large
Dutch corporates, F&A and selected TMI
activities (see WNS, 8/2000) as familiar
banners. What has changed is the way we
organize our service and delivery of prod-
ucts. Relationship management will be
product neutral and aimed fully at creat-
ing customer intimacy, opening up cross-
selling opportunities to focus ciients. Fo
cus on F&A and TMI will be monitored
more strictly than in the past. We've
achieved niche reputation and recognition
in F&A. The time has come to leverage
and build on that expertise. Basically,
that's what the positioning is all about.
Our anrbition statement remains as pre-
sented during the Managing Board visits
are aiming to do. Our strategie position
ing is that of a niche player - although in
the Netherlands, our domestic market, we
service the top corporates in all sectors.
However, around the world, the aim is
real focus on F&A and selected TMI ac
tivities. Another key element is that we
shoot for solvency efficiënt business. Tai
lored solutions. Buy and sell rather than
buy and hold. (ïiven the scarce source of
solvency, we will have to efficiently use
our balance sheet.'
Although 2000 was a good
year for Rl, a closer look at
results shows that a signifi
cant part of income has
been generated by a linrited
number of customers and
products. Corporate finance
contributed strongly, along
with the Gilde funds
hooked in RL Plain vanilla
lending and trade finance
activities took up the bulk
of our solvency (50%) as
well as the majority of commercial staff to
bring in only 3% of net result. Support
and administration costs were inefficiently
allocated as indicated by an indirect/direct
cost ratio coming to 1.75x. Another fac
tor in 2000 was the unacceptable increase
in provisions by EUR 350 million.
(x EUR millions)
Budget 2000
Actual 2000
Total income
1,336
1,462
Expenses
951
1000
Gross Result
385
462
Net Provisions
140
175
Tax
55
67
Minority Interests
5
56
Net result
185
164
Solvency
2,430
2,443
ROS
7.6%
6.7%
I/E ratio
1.40
1.46
Headcount
4,106
3,796
