BayernLB Group Investor Presentation

Munich, January 2021 The German banking system stands on 3 pillars

Private banks Public banks Co-operative banks

› Big banks (4) › Landesbanks (6) including BayernLB › DZ Bank (central institution) › Deutsche Bank › DekaBank › Credit co-operatives (878) › DB Privat- und Firmenkundenbank › Savings banks (386) › Building and loan associations (1) › Commerzbank › UniCredit Bank › Building and loan associations (8) › Mortgage banks (2) › Regional and other banks (159) › Mortgage banks (2) › Branches of foreign banks (119)

› Building and loan associations (11)

› Mortgage banks (7)

Source: Bundesbank, Statistische Beihefte Bankenstatistik, p. 104; figures as of 2018 adjusted by BayernLB Research excluding development banks

2 Strong owners

Association of Bavarian Free State of Bavaria Savings Banks

~ 25% ~ 75 %

BAYERNLB HOLDING AG 100% state 100% guarantee from the Free State of Bavaria

Institution established under public law 100%

1

1 A body established under public law w hich is a legally dependent part of BayernLB

3 Free State of Bavaria compares well to its European neighbours AAA Top ratings 2019 gross domestic product by country The Free State of Bavaria has the highest ratings from Standard & Poor's EUR bn and Moody's – AAA/Aaa

3,436 EUR 633 bn 2,523 Gross domestic product 2,419 Bavaria accounted for 18.4% of Germany's nominal gross domestic 1,788 product in 2019.

1,245 Bavaria

812 DAX 30 633 628 529 Bavaria – a state with a strong economy 475 473 399 359 347 311 Around 25% of all DAX 30 corporations 240 212 188 are in Bavaria. Bayern has one of the strongest economies of all the German states and is home to a large number of Mittelstand companies. Sources: BayernLB Research, Eurostat, German federal and state statistics offices, Datastream

4 Savings banks – major customers and sales partners

Savings banks are the top financial services providers throughout Bavaria

› 64 savings banks › EUR 222.7 bn in total assets › EUR 142.3 bn credit volume › EUR 175.0 bn in customer deposits › 36,621 employees and trainees › 2,748 branches (incl. self service) › 14.9 m savings, current and securities accounts

As at: 31 December 2019

5 Our value proposition as the BayernLB bank of the future:

1. As a streamlined, specialised bank we are the reliable innovation partner for companies in high-growth business sectors of the future in particular in Bavaria and Germany, and support our corporate customers sustainably and for the long term with in-depth expertise

2. In real estate financing, we use our specialist knowledge and network to support our customers throughout the entire value chain in Germany and other selected markets

3. We are the central bank for the Bavarian savings banks and the main bank for the Free State of Bavaria

4. As a tech bank, DKB provides its customers with an excellent client experience and outstanding digital solutions

5. Our asset management companies Real I.S. and BayernInvest enable our customers to choose from a wide variety of sustainable investments

6 Our structure: three strong segments

Corporates & Markets Real Estate / DKB Savings Banks & FI

› Special lender with in-depth › Reliable real estate lender with › Innovative tech bank, expertise in sectors of the special consulting expertise which inspires its customers as future in Germany and selected a digital companion and foreign markets sustainable partner › Advanced structuring (#geldverbesserer) expertise in financing: › Central bank of the Bavarian structured asset finance and savings banks and a strong › Strong earnings growth debt capital markets (DCM) partner to the public sector and through its target to double financial institutions customer numbers to 8 million › Streamlined offering of Financial Markets’ risk management products

7 We are there for you at home in Bavaria and abroad

Germany Munich Nuremberg Stuttgart Frankfurt Dusseldorf Hamburg Berlin Leipzig

Foreign Representative office Munich head office branches: Moscow London Milan German Centres Paris Shanghai New York Taicang

Support for your international activities thanks to around 1,100 correspondent banks in 100 countries

8 DKB – retail pillar of the BayernLB Group

DKB – Das kann Bank DKB Group IFRS financial statements 30 June 2020 Our products and services lead the market and are renowned Total assets EUR 97.7 bn for their fair prices. We provide an intelligent banking experience based on the Equity EUR 3.7 bn latest technology. Our retail customers carry out their daily Liabilities to customers EUR 65.4 bn banking transactions conveniently and securely online. Our Net interest income EUR 477.6 m business customers are served personally on location by our sector experts. Profit/loss before taxes EUR 118.0 m RoE 7.4% › Approx. 4.5 m retail customers › Germany’s second largest online bank › The most sustainable of Germany’s top 20 banks (e.g. social bond for retail customers, sustainability funds and the crowd investing platform DKB-Crowd) › In business with corporate and infrastructure customers, the focus is on sectors with long-term growth potential in Germany › Financing partner for more than 4,000 municipalities, administrative districts and municipal associations Convenient and secure – DKB business customers – DKB’s internet banking personal service

9 BayernLabo – development bank of the BayernLB Group

Subsidised housing and municipal lending for Bavaria 31 December 2019 BayernLabo has the legal mandate to promote social housing Total assets EUR 18.0 bn and municipal construction in Bavaria. In addition, BayernLabo issues government and municipal loans in Bavaria. Own funds EUR 2.8 bn CIR 48% › The Free State of Bavaria is liable for all the liabilities assumed Employees 219 FTE by BayernLabo › BayernLabo has a Aaa rating from Moody’s › Solva 0 status › LCR status level 1 Aaa › No bail-in risk BayernLabo’s rating from Moody’s

BayernLabo – a sustainably good company

10 BayernLB posts earnings before taxes of EUR 276 m

› Stable operating performance: net interest income on par with year- before period, net commission income higher › Risk provisions raised to EUR 175 m to cover potential risks from the coronavirus pandemic › Strategic investments, particularly in IT infrastructure, cause rise in HIGHLIGHTS administrative expenses

› Transformation continues on schedule despite operational challenges from the coronavirus pandemic › Solid capital base: CET1 ratio at 15.6%

11 Operating profit was stable

Profit/loss before taxes Consolidated profit/loss EUR m EUR m

433 394 276 179

9M 2019 9M 2020 9M 2019 9M 2020

CIR RoE In % In %

65.3 65.4 6.0 3.7

9M 2019 9M 2020 9M 2019 9M 2020

12 Capital base still sound

Total assets RWAs EUR bn EUR bn

265.6 64.6 65.0 226.0

Dec 2019 Sep 2020 Dec 2019 Sep 2020

CET1 capital CET1 capital ratio EUR bn in %

10.1 10.1 15.6 15.6

Dec 2019 Sep 2020 Dec 2019 Sep 2020

13 Net interest and net commission income up slightly on 9M 2019 at approx. EUR 1.5 bn

Net interest income Net commission income EUR m EUR m

1,292 1,324 205 224

9M 2019 9M 2020 9M 2019 9M 2020

› Net interest income unchanged on the year-before › Increase of approx. 9% on 9M 2019, due in period despite the difficult climate particular to new business

14 Risk provisions for expected charges from the coronavirus pandemic

Gains or losses on fair value measurement Risk provisions EUR m EUR m

73 (8) (175)

(29)

9M 2019 9M 2020 9M 2019 9M 2020

› Earnings higher, boosted mainly by precious metals › Risk provisions increased, in particular to cover business potential risks from the coronavirus pandemic (post model adjustment) › Year-before period buoyed by high releases and recoveries on written down receivables › Average NPL ratio remains low: 0.6%

15 Increased administrative expenses due to investment, higher contribution to bank levy and deposit guarantee scheme Administrative expenses Expenses for the bank levy and deposit guarantee EUR m scheme EUR m

(1,078) (1,135) (123) (150)

9M 2019 9M 2020 9M 2019 9M 2020

› Strategic investment, especially in modernisation of › Expenses for the bank levy EUR 67 m IT at BayernLB and DKB (9M 2019: EUR 56 m) › Initial reductions in operating costs, mainly at › Expenses for the deposit guarantee scheme BayernLB core Bank approx. EUR 83 m (9M 2019: EUR 68 m), mainly due to higher secured deposits at DKB

16 Segment results marked by positive earnings trend and risk provisions

Profit before taxes by segment Note: the previous year’s figures in all segments EUR m apart from DKB have been changed following the 9M 2019 9M 2020 BayernLB Group’s strategic realignment 165 241 140 234

19 (70) 10 (28)

Real Estate & Savings Corporates & DKB Central Areas & Banks/Financial Institutions Markets Others

› Increase in earnings in Real Estate & Savings › Expected drop in earnings at DKB resulting from Banks/FI due to pleasing new business performance strategic investments in sales and digitalisation was in real estate and very good business with precious moderate, as it was softened by net positive risk metals. Earnings in the previous year were favoured provisions and gains on measurement of equity by releases of risk provisions. investments. › Positive earnings trend and savings in administrative › Earnings in Central Areas & Others impacted expenses in Corporates & Markets overshadowed by considerably by low one-off income, additional costs risk provisions to cover potential risks arising from to resolve the last legacy issues and higher the coronavirus pandemic. contributions to the bank levy and deposit guarantee 17 scheme. CET1 ratio well above SREP minimum ratios

15,6

9,5 Buffer for national systemic relevance 0,5 2,5 Capital conservation buffer 2,0 Pillar 2 requirement 4,5 Pillar 1 requirement

Sep 2020 2020 CET1 ratio CET1 SREP requirement

› CET1 ratio of 15.6% on 30 September 2020 was › Additional capital buffers: well above the SREP minimum ratio for 2020 of  Capital conservation buffer: 2.5%: may be 9.5% temporarily undershot due to the corona crisis › The minimum CET1 ratio set by the CRR (Pillar 1  Buffer for national, systemically important requirement) is 4.5% institutions: 0.5%1 › On top of that is an individual premium (Pillar 2 requirement) of 2.0% for 2020

1 Reduction of 0.5 percentage pointsfrom 1 December 2020

18 MREL requirement is significantly exceeded

MREL holdings › MREL holdings as at 30 Sep 2020 take account of In % of RWAs changes resulting from the banking package (e.g. senior preferred and other MREL are no longer 56.72 eligible) › Supervisory authority’s MREL requirement is 7.75% of TLOF (equates to 25.34% of RWAs) › MREL holdings as at 30 Sep 2020 stood at 14.38% of TLOF (equates to 56.72% of RWAs), which far 38.78 Senior non-preferred exceeds the supervisory authorities’ requirements › Large portfolio of subordinated eligible liabilities (senior non-preferred) not only effectively protects the superior senior preferred category from losses, but also offers broad protection within the senior non-preferred category

17.93 Regulatory capital

MREL holdings 30 Sep 2020

19 Transformation process and outlook

Progress with the transformation Despite operational challenges posed by the coronavirus pandemic, the BayernLB Group is forging ahead as planned with its extensive, multi-year transformation programme Fokus 2024 launched in January 2020. BayernLB has achieved key project milestones in the past few months and, for example, launched various IT modernisation projects in the core Bank and DKB. In addition, it has taken initial measures to improve earnings and profitability in the Group’s business areas and implemented the first efficiency initiatives in all units of the Bank, including, for example, redesigning the credit process and optimising trading and transaction processes. The core Bank is on schedule with reducing its operating costs.

Outlook As it currently stands, BayernLB expects profit before taxes to be positive for financial year 2020 – nevertheless the coronavirus pandemic and the related challenges are the source of exceptionally high uncertainty. The negative impact on global economic output will be considerable and will be greater the longer the pandemic continues.

20 How we will achieve sustainable success on our own terms in future

We are focusing on our We are improving our We are a strong

STRENGTHS EFFICIENCY PARTNER

We will further expand our position We will invest in infrastructure We will continue to be a reliable in real estate finance and and IT at the core Bank and DKB partner to our customers in structured asset finance. and will set ourselves up as Bavaria and Germany. modern and secure. We will focus on profitable and We will remain the principal bank future-oriented sectors in our At the same time we will to the Free State of Bavaria and corporates and capital market considerably reduce our cost strong partner to the public business. base, especially in the core Bank. sector. We will double our customer base We will increase the efficiency of We will still be the central bank of in DKB’s retail business. the platform in Munich and thereby the Bavarian savings banks, firmly We will focus our business more also support the ongoing growth of rooted in the S-Finanzgruppe. closely on sustainability. our subsidiary, DKB.

21 Our capital base: strong cornerstone of the BayernLB bank of the future

RoE 6.7 ~ 8 Focus in % › Maintain volume of RWAs on par with today in the target CET1 ratio 15.6 >14 vision in % › Include investment and restructuring costs in capital planning RWAs ~ 68.0 64.6 › Grow capital base, mainly via EUR bn ~0.5 0.3 retention of earnings DKB › Finance growth at DKB from the Bank’s own resources BayernLB core Bank ~ 35.5 › Ensure ongoing ability to pay a Other subsidiaries 39.6 dividend

~ 32.0 24.7

2019 2024

22 Major investment in the …and efficiency future... improvements

INVESTMENT COSTS

› Core Bank: Considerably reduce costs in the core Bank by 2024 Invest in further increasing sector expertise in business with corporate, real estate and special › Streamline activities in the capital market and customers; in addition, invest a triple-digit million corporate lending business, incl. reducing the range sum in infrastructure and IT to significantly of products and complexity in the trading and credit increase the efficiency of the platform in Munich processes

› Generate savings in the central areas and in IT costs › DKB: by significantly simplifying the IT landscape Invest EUR 400 m in growth and in the future over the next five years, both to modernise and › In addition to the 400 job cuts agreed at the end of upgrade the IT systems and to achieve 2019, further socially responsible job cuts of a similar considerable growth in retail and business scope are planned. However, the Bank has ruled out customers redundancies until autumn 2022.

23 Rating agencies commend BayernLB‘s performance

Moody´s 2009 2011 2014 2016 2017 2018 2019 2020

Issuer Rating A1 Baa1 A3 A2 A1 Aa3 Aa3 Aa3

Preferred Senior Unsecured Aa3 Aa3 Aa3

Non Preferred Senior Unsecured A2 A2 A2

Baseline Credit Assessment ba3 ba3 ba2 ba1 baa3 baa3 baa2 baa2

Fitch 2009 2011 2014 2015 2016 2018 2019 2020

Issuer Rating A+ A+ A+ A- A- A- A- A-

Preferred Senior Unsecured A- A- A

Non Preferred Senior Unsecured A- A- A-

Viability Rating bb+ bb+ bb+ bbb bbb+ bbb+ bbb

24 Excellent asset quality

Gross credit volume Credit portfolio EUR bn › Growth in lending in part due to participation in the ECB tender (TLTRO III)

280 307 › Portfolio quality very high › Impact of coronavirus pandemic still low

Dec 2019 Jun 2020 Rising quality › NPL ratio and NPL portfolio shrank slightly in the NPL ratio first half of the year and remain low In % › Slight drop to 0.6% is the result of reducing individual exposures 0.7 0.6 › Cover ratio stable at 42% without collateral

Dec 2019 Jun 2020

25 Well diversified credit portfolio

Gross credit volume by region Gross credit volume by sub-portfolio In % In %

Supranational orgs CIS (EUR 2.7 bn, <1%) (EUR 1.0 bn, <1%) Asia/Australia/Oceania Latin America/Caribbean Financial Institutions (EUR 1.7 bn, <1%) (EUR 0.6 bn, <1%) 18% Middle East Africa Commercial Real Estate (EUR 1.5 bn, <1%) (EUR 0.2 bn, <1%) 19% Corporates 24% 11% Eastern Europe Retail/Other North America 5%1% 81% Germany 28% 11% Western Europe Countries/Public Sector/ Non-Profit Orgs.

› Germany EUR +26.7 bn › Countries/Pub. Sec. › Western Europe EUR +0.7 bn /Non-Prof. Org.1 EUR +20.6 bn › Financial Institutions EUR +3.2 bn 1 Growth in part due to participation in the ECB tender (TLTRO III) › Commercial Real Estate EUR +2.2 bn

26 Very high investment grade share

Gross credit volume by rating category EUR bn / %

Dec 2019: Total EUR 279.7 bn Jun 2020: Total EUR 307.3 bn 87.9% investment grade

201.2 178.3

65.2 68.9 25.8 26.4 7.0 7.6 1.3 1.4 2.0 1.9 MR 0 - 7 MR 8-11 MR 12-14 MR 15-18 MR 19-21 MR 22-24

Investment grade Non-investment grade Default categories

27 Highly granular

Net credit volume EUR bn / %

Dec 2019: Total EUR 212.2 bn Jun 2020: Total EUR 235.2 bn 76% up to EUR 500 m

54.4 57.5

37.2 38.2 36.0 35.3 35.4 26.9 24.8 20.8 21.7 16.3 19.1 17.2 3.2 3.3

> EUR 2.5 bn EUR 1 bn to EUR 500 m EUR 250 m to EUR 100 m to EUR 50 m to EUR 5 m to Up to EUR 5 m EUR 2.5 bn to EUR 1 bn EUR 500 m EUR 250 m EUR 100 m EUR 50 m

› Considerable growth posted in the “> EUR 2.5 bn” size category, as balances held with central banks were increased at Deutsche Bundesbank › The portfolio remains highly granular and a very high volume of EUR 151 bn still falls under the size categories up to EUR 0.25 bn

28 Diversified corporate customer portfolio which maintains a high investment grade share

Corporates by sector EUR bn

Dec 2019: Total EUR 74.1 bn Jun 2020: Total EUR 74.9 bn

23.7 24.2

8.4 8.5 7.9 8.2 7.5 7.4 6.7 6.5 5.6 5.7 5.3 5.2 5.4 5.5 3.5 3.8

Utilities Consumer Logistics Telecoms, Mechanical Raw Automotive Chemicals, Construction goods, & aviation media & engineering, materials, pharmaceuticals tourism, technology aerospace oil & gas & healthcare wholesale & defence & retail

› Business volume grew by EUR 760 m › Investment grade share remains very high at 74.9% and is only down slightly due to the coronavirus pandemic

29 Commercial real estate finance

Gross credit volume by asset class/unit Highlights EUR bn/Jan 2020 › Portfolio was expanded as planned by EUR 5.2 bn to EUR 55.5 bn BayernLB DKB BayernLabo › Granular portfolio with 88% share in Germany › Residential asset category includes around EUR 34.4 21.5 bn (previous year: EUR 19.0 bn) of low-risk business due to local authority/government 6.5 ownership or guarantees and housing associations › 85% investment grade share › 70% of the cash flow generating gross exposure (GEX) has a debt service capacity of > 8% p.a. › Expected loss at 5 bp; stable trend 25.4 › Low average NPL ratio of 0.4% 9.7 Outlook 6.4 4.4 › Pursue a clearly defined, well considered growth path 3.5 in Germany and abroad with increasing risk 2.5 2.9 diversification within the real estate portfolio Residential Office Managed Retail › Realise growth in foreign business by using existing real estate infrastructure via foreign branches and local networks while maintaining the current portfolio and risk profile

30 › Breakdown of asset classes in the target portfolio will remain almost unchanged Private residential construction term loans

Gross credit volume by unit Distribution in Germany EUR bn/Dec 2019 Granular portfolio with focus on Bavaria, mainly due BayernLB DKB BayernLabo to BayernLabo 14.7 14.0 13.7 0.4 0.4 0.3 0.2 0.1 0.5 0.7 0.8 0.5 0.9 10.8 10.4 10.3 1.5 0.7 0.7 0.5 0.3 0.1 4.8 3.5 3.3 3.2 1.0 2017 2018 2019 Volume (EUR bn)

Highlights of the DKB portfolio Outlook for DKB › Average ticket size (entire portfolio): EUR 144 k Credit volume will increase from 2020. New business › Average ticket size (new business): EUR 223 k will be managed in a targeted manner to improve efficiency through higher loan amounts per application

31 Comfortable liquidity levels

Funding strategy Capital market funding › Lower funding needs in 2020 are the result of the EUR bn/BayernLB core Bank not incl. BayernLabo streamlining of BayernLB core Bank and the Secured Unsecured related reduction in requirements › Slight uptick in funding volumes in 2021 due to Issued Planned planned new business › Focus on unsecured funding at BayernLB level 8.2 8.6 using diversified sources of funding, especially via the savings banks, institutional investors, 3.5 6.1 4.2 retail and the international DIP scheme 4.5 0.0 2.3 › Maintain capital market presence by regularly issuing secured benchmark bonds 5.1 4.0 4.5 3.8 › EUR 27bn participation in TLTRO III ECB tender (BayernLB and DKB) 2018 2019 2020 2021e › Liquidity coverage ratio (LCR): 233% as at Sep 2020

32 Investor-friendly structure on the liabilities side

Liabilities structure Funding via Pfandbriefs EUR bn/Jun 2020 › BayernLB uses a total of four funding Liabilties to banks Other liabilities programmes based on the German Pfandbrief Liabilities to customers Subordinated capital Act (PfandBG) as a low-cost, long-term source of Securitised liabilities Equity funding, two each at BayernLB and DKB AG

258.0 30.2 29.4 17.7 11.6 Broad base of unsecured liabilities 43.3 1.7 › BayernLB has an investor-friendly structure on the liabilities side with sufficient unsecured bonds 112.1 in relation to total assets. The Bank actively monitors and plans the proportion of unsecured bonds in accordance with Moody’s Loss Given 4.6 71.6 Failure-Analysis

balance Of which Of which Of which sheet total Pfandbriefs unsecured structured debt debt instruments instruments under Section under Section 46 f KWG 46 f KWG 33 BayernLB Pfandbriefs

Mortgage Pfandbriefs Public Pfandbriefs Cover mainly includes commercial real estate, The majority of the cover (>90%) consists of German primarily residential, office and retail with a focus on municipal finance and receivables guaranteed by Germany. The high overcollateralization provides German states with a focus on Bavaria. Tap issues freedom to launch issues across all maturity bands. and jumbolinos are issued on a regular basis to maintain a liquid Pfandbrief curve.

Key figures for Q3 2020 Key figures for Q3 2020 Outstanding volume EUR 3.9 bn Outstanding volume EUR 17.9 bn Moody’s rating Aaa Moody’s/Fitch rating Aaa/AAA Excess cover 140.6% Excess cover 28.3% Cover pool Germany EUR 6.1 bn Cover pool Germany EUR 21.2 bn Cover pool abroad EUR 3.0 bn Cover pool abroad EUR 1.3 bn

34 A Group with a strong sustainability background

Association of Focus areas of the Free State of Bavaria Bavarian Sustainability Bavarian Savings Banks Strategy

› Climate change ~ 25 % ~ 75 % › Sustainable energy › Natural resources 100 % state › Sustainable mobility guarantee › Social cohesion from the Free › Education and research Institution established under public law State of Bavaria › Sustainable economy 100 % and consumption › Nutrition, health, care › State and administration › Sustainable financial policy

Legally dependent institution › Global responsibility established under public law w ithin BayernLB

BayernLB has a mandate geared towards sustainability based on the approach of the Free State of Bavaria and the EU Taxonomy. To this end, all issuing entities have established a green and/or social framework

35 Position of BayernLB Promoting sustainability

› BayernLB has been actively engaged in the promotion of sustainability for 25 years, achieving numerous milestones along the way Prime Status Awarded by ISS ESG (formerly › Signing UNEP-Finance Initiative ("Environmental Banks") in 1995, ISS Oekom) and held by commitment to World Bank standards in 2004, regular and detailed BayernLB since 2006 (first sustainability reporting since 2007, signing of UN Principles for sustainability rating in 2000) Responsible Investment (PRI) by BayernInvest in 2011, first DKB Green Bond in 2016, BayernLabo Social Bond in 2017, first DKB Social Bond in 2019 and BayernLB Sustainable Finance Framework Industry Leader in 2020 (formerly “Green Bond Framework”) with subsequent Green BayernLB, DKB and BayernLabo Bond issues for retail customers are ranked among the leading, › In 2019 the bank cemented sustainability as a core building block of its sustainable banks in their sectors new strategy, further strengthening its commitment to a sustainable future › The bank is already one of the largest financiers of renewable energies in Germany and has extensive expertise and market knowledge in European and non-European markets › The leading ESG rating agencies confirm BayernLB's commitment to sustainable development, which is well above the industry average › BayernLB’s subsidiary DKB also shows top performance. It has been rated separately since 2015 and is currently rated "B-", the best rating in its industry and thus the "Industry Leader". The development bank BayernLabo also receives a separate rating and qualifies for prime status D- D D+ C- C C+ B- Prime

36 BayernLB’s Sustainable Financing Framework

Overview Details

Use of Proceeds Significant contribution! › In the first phase, only renewable energy projects are included in the Sustainable Loan Pool. In the second phase, mass public transportation as well as green real estate will be added › All assets in the pool contribute significantly to the UN Sustainable Development Goals

Assessment and selection of Process for Project Evaluation and Selection projects lead by Sustainability › Assets are assessed in a two-step process with credit departments Working Group proposing a project/loan and the Sustainability Working Group deciding on its merit Management of Proceeds Sustainable Loan Pool (currently 2.45 EURbn) › Proceeds from sustainable issuances are managed by Group Treasury within the general liquidity pool while ensuring that the sustainable asset pool surpasses all outstanding sustainable funding in volume (i.e. portfolio approach) Reporting › BayernLB will publish an annual impact and allocation reporting Plain/structured containing details of the asset pool (volume, geographical/ Annual impact and bonds/Schuldschein technological split, capacity installed, CO2 avoided) and details of allocation reporting loans the issued sustainable securities Commercial paper

Framew ork and second party opinion are available on our Investor-Relations-Homepage

37 Renewable Energy Portfolio

Overall Sustainable Loan Portfolio Technological split (in EURm)

Solar Wind

1,610 EURm 3% 13%

Photovoltaik On-Shore Off-Shore

860 EURm 97% 87%

Comments Geographical split

› The renewable energies portfolio of Solar Wind BayernLB (without DKB) comprises 1.6 6% Germany 6% Germany EURbn in wind energy projects as well 18% 11% Italy United States as 860 EURm in solar power plants 22% 31% 20% › Clear focus on Western and Northern United Turkey States UK Europe but also significant exposure in 27% UK the United States and Canada 19% Canada Others 22% 18% Others

Information based on data provided for the second party opinion.

38 Sustainability Ratings of the Group

ISS ESG Sustainalytics imug MSCI ISS ESG imug ISS ESG

Rating C+ 68 Points 48,69 % AA B- 43,61% C+ Unsecured Public bonds "neutral" Pfandbriefs (CCC) „Prime“ „very Ranking / Public Above (Rank 7 positive" (A) Investment 77 out of 340 Pfandbriefs industry „Prime“ „Prime“ out of 252 Mortgage Status "positive" (BBB) average Banks) Pfandbriefs Mortgage "positive" Pfandbriefs (BBB) "positive" (BB) Industry D 60 Points 50,99 % A D 21,45% n/a average -100 % - Range A+ to D- 0 - 100 Points 0% - 100 % AAA to CCC A+ to D- A+ to D- 100 % 252 MSCI ACWI 281 „Financials/ „Financial Index „Financials/ 24 „Savings Mortgage & Benchmark s/ Public & 340 „Banks“ constituents, Public & 57 Banks Banks“ Public Sector Regional Banks, Regional Finance" Banks" n=200 Banks" Date 01 / 2020 06 / 2019 03 / 2020 10 / 2020 01 / 2020 03 / 2019 12 / 2019

39 Selected BayernLB policies for critical sectors

BayernLB observes the World Bank’s environmental and social standards in all relevant financing transactions. These are based on the performance standards of the World Bank Group’s International Finance Corporation (IFC) and the World Bank's Environmental, Health, and Safety (EHS) Guidelines.

› Excluded from financing in particular are projects that are harmful to the climate or the environment. For example, financing is not provided for the construction of new coal-fired power plants or to extract natural gas or crude oil through fracking or extraction from tar sands. Companies that generate their sales exclusively from products and services employed in areas excluded from financing by the financing guidelines are excluded FossilFuels from corporate financing

› Projects and all related goods and services for mining or extracting nuclear fuels and constructing new nuclear power plants are excluded from financing, while companies that generate their sales exclusively from products

Nuclear and services employed in the excluded areas are excluded from general corporate financing

› BayernLB recognizes the right of a state to defend itself. On this basis, offering services to arms companies or individual financial transactions for weapons and armaments is in principle possible within the framework of existing laws. We require that the financing is approved following an mandatory case-specific examination

Weapons › With BayernLB’s new strategic focus defense ceased to be a focus sector at the end of 2019 and will be scaled down over the long term

› BayernLB Group does not engage in speculative transactions in staple foods. In this vein the Group does not invest directly in staple foods, nor indirectly in derivatives which replicate or speculate on the price performance

Food and/or shortages of staple foods. Furthermore, the bank does not offer any investment products which replicate or speculate on the price performance and/or shortages of staple foods

More details are available in our 2019 Annual Report (link to financial reports)

40 Contact

Volker Karioth Senior Manager [email protected] +49 89 2171 23441

41 Disclaimer

The information in this presentation constitutes neither an offer nor an invitation to subscribe to or purchase securities or a recommendation to buy. It is solely intended for informational purposes and does not serve as a basis for any kind of obligat ion, contractual or otherwise. Rounding differences may occur in the presentation.

42