About this Report Chairman's Foreword Corporate Management Report Appendices Governance Consolidated Financial Company Financial Statements Statements The Future of Food As a leading global Food Agri (F&A) bank, we are committed to making a significant contribution to securing enough healthy and sustainable food for people and planet alike. Overall, our Wholesale, Rural and Retail (WRR) loan portfolio grew steadily, increasing by 7% to EUR 109.0 billion, of which 61% was invested in the F&A sector. Our Wholesale team was involved in a number of landmark deals this year. Our Rural and Retail business also had a successful year, two highlights of which were the opening of the new office in Peru and the start of rural activities in Argentina. Banks are primarily known for their financial solutions. But Rabobank also sees its knowledge and networks as important sources of value for customers. Building on years of experience organizing regional client meetings, in July 2018 we brought together members of our international F&A Advisory Boards, Client Councils, the Rabobank Foundation and local Rabobank Supervisory Boards to discuss global trends in the F&A sector and how we can further support them. Climate Change Risks We support our clients and staff in times of need. Many of our clients and some of our employees, were confronted with the effects of severe climate conditions last year, including droughts, hurricanes, typhoons and forest fires. To mitigate these risks, we are incorporating more research on the impact of climate changes in our sector analyses. We are working with external parties to quantify and incorporate these risks in our risk models. The first pilots have been performed and the outcomes are currently being analyzed. At the same time, we are integrating sustainability in strategic client dialogues. Our Sustainably Successful Together program is helping more clients adopt more circulareconomy practices. Innovation and digitalization can play a key role in helping clients deal with the risks of climate change while also creating new market opportunities. New F&A Innovations Innovation is key to Rabobank's future growth and client focus. Our F&A Innovation Fund, which was established in 2017, made four equity investments in the reporting year: Biolumic (New Zealand), Vence (United States), Telesense (United States), and Enko Chem (United Kingdom). Our pitch program for food start ups, FoodBytes!, has already held 14 events on 3 continents, with more than 1,200 applications from eager start-ups from more than 59 countries, generating 35 award winners. In cooperation with Wageningen University, Rabobank ran the third edition of "F&A Next" in May 2018, a two-day program that brings together investors and start-ups from around the world who are active in the food and agtech space. Our global accelerator program, TERRA, attracts start-ups and corporates from all over the world, and has already hosted two cohorts for a total of 32 food and agtech start-ups. Cohort III is already underway. We also hosted the 2018 Rabo Sustainability Innovation Prize. Over 350 companies submitted entries. Three companies (Kipster, Peel pioneers and Somnox) each won EUR 20.000 and an intensive coaching program from Rabobank to develop their innovations. Rabobank continues to see potential in blockchain technology for corporate clients. In September, Rabo Frontier Ventures, a subsidiary that invests in high-potential, early-stage financial and food agricultural companies, participated in the blockchain platform Komgo SA. Komgo was launched by 14 of the world's largest institutions, including banks, 'energy majors', trading companiesandan inspection company. Komgo seekstodigitalize the trade and commodities finance sectorthrough a blockchain- based open platform. Future-Proofing Our Own Organization To enhance our innovative capabilities, Rabobank uses an innovation funnel model to investigate a constant feed oftech- and society-driven innovative solutions. A standardized way of working based on Agile and 'Lean Start-up' principles accelerates our innovation and helps us find new areas of business. Several innovations have already emerged from the innovation funnel model. IT Landscape and Data We are simplifying our IT landscape. Decoupling and reducing applications will result in cost savings in 2019. A simplified IT landscape allows for a flexible and quick response to changing customer needs. Our data foundation optimizes data use in our services and our internal processes. Once integrated control over data and different programs is established, structural improvement will result in better availability and quality of data. The uptime score for both internet and mobile banking in 2018 was 99.9%. One Digital Workspace In 2018 we started the One Digital Workspace (ODW) program. The aim is to make a completely renewed and integrated workplace available for all Rabobank's global branches in the coming years. The main objectives of the ODW program are to integrate Rabobank's international and domestic workplace environments; provide modern workplace functionalities such as Windows 10 and Office365; reduce costs with cloud technology, and massively improve the security of the IT workplace. During the roll-out in 2018, an impressive 80% of our employees switched to ODW. The roll-out will continue in 2019 with a large-scale adoption program to introduce our staff to these new possibilities. The ODW program is crucial to our ambition of facilitating employees' collaboration with each other and our customers. Annual Report 2018 - Management Report 25

Rabobank Bronnenarchief

Annual Reports Rabobank | 2018 | | pagina 27