Investor presentation

May 2020 4.4 DKB at a 1990 million FOUNDING YEAR CLIENTS 100% subsidiary Local authorities, companies and glance of BayernLB retail clients

• Leading lender for green and EUR 84 EUR 70 social infrastructure billion billion • Second largest BALANCE SHEET TOTAL CLIENT One of the top 20 in Germany Onlinebank in Germany in Germany

• Industry Leader in EUR 951 sustainability 4,148 million EMPLOYEES NET INTEREST INCOME Highlights 2019 Strengthening the position among the TOP 20 banks in Germany

Business Results

. Strong growth in core business - EUR 3.6 billion . Net interest income of EUR 951 million was slightly above increase in loans and advances to customers the previous year's figure (2018: EUR 945 million) . Significant growth in total assets by more than . Earnings with EUR 298m in line with previous year´s FY EUR 6 billion to EUR 84 billion profit . Expansion of digital distribution channels in the . Investments in digitization and growth as main cost drivers business customer segment

Risk Ratios

. Further enhancement of asset quality . Return on equity: 9.5% . Significantly improved risk result . Cost-Income-ratio: 56.7% . NPL ratio at a historical low (0.8%) . Equity ratio: 11.2%

3 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 DKB and the Corona-crisis Interim status as of 31/03/2020

Germany Business development . Comprehensive package of measures by the . No extraordinary developments in core activities at German government and federal states to present combat the economic consequences of corona . Stable deposits and growing lending business Public authorities and development banks as . . Support of borrowers with the help of promotional financiers and guarantors for many aid loans and other tools programmes ! risk Market risk

. DKB business focused in Germany . Equity exposure in the low three-digit million range . Consequences for borrowers cannot be fully assessed yet . Bond exposure almost exclusively in LCR-eligible bonds of core European issuers . Task Force for monitoring and management of the Corona crisis established

4 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Corona-impact due to DSGV-scenario analysis As of 01/04/2020 (for corporate and individual clients only)

Loan Volume (EURbn) Corona impact scenario 30 . German Savings Banks Association (DSGV) has published a scenario analysis Housing regarding the impact of Covid-19 22,7 20 . Based on economic sectors and DSGV industry forecast Local authorities & social infrastructure . Considers supply shortfalls, the 13,8 drop in demand and the Environmental government interventions 10 technologies 8,6 . Impact index (6 = strong impact Food & Individual clients of crisis, 1 = low) agriculture 2,7 Other corporates Energy & supply 3,7 (incl. tourism) . “Translation” of the impact index 6,5 1,4 into DKB client groups 0 0 1 2 3 4 5 6 Impact index

Source: DSGV and DKB 5 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation Agenda

1 DKB´s position in BayernLB group

2 Business model

3 Sustainability

4 Facts and figures

5 Funding

6 Contacts

6 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation 1 DKB´s position in BayernLB group

7 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Ownership structure Wholly-owned subsidiary of BayernLB

Association of Bavarian Savings Banks Free State of Bavaria BayernLB Holding AG ≈ 75 % ≈ 25 %

Binding letter of comfort and profit/loss transfer agreement

Real Estate & Corporates & Markets Savings Banks/Association

Specialized for the future issues Reliable and strong real estate Innovative Tech-Bank with of the German economy financier industry know-how Central Bank of the Bavarian savings banks

8 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Realignment of Bayerische Landesbank Focus, efficiency, growth

Transformation programme until 2024

Key note Investments

. Specialisation in high-growth future fields . Investment offensive at DKB . Sustainable banking and responsibility for society . Expansion in real estate financing business . Investments in infrastructure and IT

Focus Costs . Concentration in business with corporate . Significant cost reduction in BayernLB core bank customers and in business on . Simplification and streamlining of IT profitable and sustainable areas . Expansion of real estate business and structured financing

Source: Excerpt from the presentation "Strategic realignment of BayernLB" (as of 19.12.2019) 9 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Current corporate concept of DKB Sustainable growth

Client Market . Excellence in all touchpoints . > 8m clients until end of 2023 . Convincing customer experiences . Corresponding growth in the portfolio . Sustainability as USP

Organisation Processes . Crossfunctional organisation . Scalability and acceleration of structures the business . New type of cooperation and target . Conversion of the current culture process landscape

10 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation 2

2 Business model

11 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Business model Lending business as the core of the bank - sustainable and low-risk

. Second biggest Online Bank in Infrastructure 43.0 Germany Retail clients . Financing of services for the 12.8 public welfare . Market leader regarding current accounts

. Biggest renewable energy portfolio in . Projects usually with a Germany Corporate municipal background clients . Market leader in 13.5 agricultural Loan volume business = 84% of total assets

12 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Business units Focus on only a few business lines - low risk and sustainable

Business customers Retail clients

26 branches across Infrastructure Corporate clients Online Germany approach 6.5bn 8.6bn 7.8bn 22.7bn

Energy & Environmental supply technology 3.7bn Mortgage loans 2.3bn 13.8bn Housing 2.7bn Personal Food & 1.4bn loans agriculture

Local authorities & Individual social Other clients and infrastructure corporates other

13 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Retail clients Growth and digitisation drivers 3.2m accounts

2.8m accounts

1.7m accounts

Digital (further) development and cooperation with Fintechs as a long-term strategy

Market leader in current accounts among the top3 online banks*

*Source: Annual reports, corporate press releases for 2019 14 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Growth strategy Currently 4.4m clients, goal 8m customers 8m clients until 2023

9,0 Scalability of 8,0 Lending business 7,0

6,0 5,0 DKB Broker 4,0

3,0 Expansion of product range 2,0 DKB Cash 1,0

0,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

15 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Digitization within DKB Innovations across all customer segments

DKB Crowd

Own Fintech

Stake in municipal funding platform

16 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation

3 Sustainability

17 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Sustainability anchored in business model Implemented regarding clients, products and processes

1996 2001 2004 2014 2016 2018 First wind Launch of the Establishment of Account opening First green bond First social bond turbine online bank. DKB STIFTUNG. process becomes issued. issued. financed. 100% digital.

1998 2002 2009 2015 First day-care First public- Sustainability Industry centre for children private management Leader with (Kita). partnership embedded ISS-oekom for project. 2000 2003 directly in the 2013 the first time. 2017 2019 DKB Bürger- First First Board of New forms of Rated as sparen biogas PV plant Management. work through outstanding by scheme. plant. financed. “Projekt Arbeiten Focus Money. 4.0” project.

18 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Blue Sustainability DKB‘s sustainability concept

Differentiation Blue sustainability

• Expansion of the • Ecological + social concept of sustainability • Orientation towards • Sustainable people's needs Development Goals (SDGs) as a strategic • Positioning foundation sustainability in the mainstream • Inclusive instead of exclusive

19 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Sustainability@ DKB Our four central goals for the future

Lead the most convincing sustainable product range until 2023 among the TOP-20 banks

until 2030 EUR 80bn in sustainable financing

until 2030 Become carbon neutral in our office operations

until 2050 Meet the 2-degree-goal with all DKB products (under Paris Climate Convention on Global Warming)

20 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Signpost sustainability SDG-Mapping of the balance sheet

77.8% 77.8% of our customer loans (EUR 54.1bn) have a significant contribution

Source: DKB Annual Report 2019 (Data as of 31.12.19) 21 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Outstanding ratings for sustainable performance Industry leader among commercial banks

Industry Leader in sustainability Best Green Bond Ratings worldwide

22 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation

4 Facts and figures

23 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Overview Annual comparison*

Key figures 2019 2018 2017 2016 2015 2014

Total assets 83.8bn 77.3bn 77.3bn 76.5bn 73.4bn 71.6bn

Customer receivables 69.5bn 65.9bn 64.5bn 63.2bn 61.6bn 59.6bn

Customer deposits 60.8bn 54.4bn 53.9bn 53.4bn 48.6bn 47.3bn

Net interest income 951m 945m 935m 795m 790m 670m

Profit after tax 298m 301m 263m 327m 225m 165m

Cost income ratio (CIR) 56.7% 51.5% 50.8% 45.8 % 48.0 % 56.1 %

Return on equity (ROE) 9.5% 10.2% 9.6% 12.4 % 9.6 % 6.1 %

Equity ratio 11.2% 11.1% 10.5% 10.0 % 9.1 % 9.9 %

* DKB Group in accordance with IFRS, in EUR 24 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Business performance Successful new loan business and diversified liability structure

Loan volume (EURbn) Customer deposits (EURbn)

+3.6 69.5 +1.4 65.9 64.5 +6.4 60.8 0.2 +0.5 0.2 0.1 53,9 54.4 12.8 3.6 12.4 13.0 4.3 4,0 13.5 13.7 13.2 40.8 31.5 35.0

38.0 40.2 43.0 2.6 2.4 2.3 15.5 13.0 14.1

2017 2018 2019 2017 2018 2019

Infrastructure Corporates Retail Other Infrastructure Corporates Retail Other

. Growth driver: Infrastructure segment, especially housing . Rise of liabilities equivalent to asset growth, mainly driven by retail unit . Private and corporate customer segments also show growth . Slight increase in deposit volumes in the corporate customer segment

25 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Key Figures and ratios Net interest income exceeding previous year level

Net interest income (EURm) Cost Income Ratio LCR

56.7% 50.8% 51.5% 951 945 31.12.2019 164% 935 30.06.2019 145%

2017 2018 2019 2017 2018 2019

NetTourismus profit after tax (EURm) Return on equity Leverage Ratio

9.6% 10.2% 9.5% 31.12.2019 3.71% 263 301 298 30.06.2019 3.88%

2017 2018 2019 2017 2018 2019

26 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Risk figures Improved loan book quality, NPL-ratio at hostorical low

RWAs based on SA* (EURbn) Risk result (EURm) Equity ratios (SA*) 11.2% 64.5 65.9 69.5 10.5% 11.1% 9.4% 9.3% -127 8.8% -112 30.9 31.5 33.2 -56 8.6% 9.1% 9.1%

2017 2018 2019 2017 2018 2019 2017 2018 2019 Equity ratio Loan book RWAs Core capital ratio (T1) Common equity tier (CET1) Loan book quality Non performing loans Capital measures

2.4% 0.8% Investmentgrade (up to BBB-) 12.5% . Strengthening of equity in 2019 Non-Investmentgrade (up to BB-) 0.9% 0.9% 0.8% through intra-group subordinated 84.4% Non-Investmentgrade (up to C) transaction

Non Performing Loans 2017 2018 2019

* Standardised approach (SA) 27 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation

5 Funding

28 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Ratings of DKB Stable credit and sustainability ratings

Public Mortgage Senior Agency Type of rating Pfandbriefe Pfandbriefe Unsecured

Moody‘s Covered Bond Rating Aaa Aaa

LT issuer rating A1

Junior Senior Unsecured A2 (senior non-preferred)*

Adjusted BCA baa1

Outlook stable

ISS-ESG Sustainability rating - - B- (Prime)

imug Sustainability rating Very positive (A) Positive (BBB) Positive (BB)

* Updated rating as of 20/08/2018 due to new law in Germany introducing senior (non-) preferred liabilties 29 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Funding of DKB Diversified refinancing options

5% 1% Customer deposits Primary funding source, diversified through all client segments 11%

Development Pass-through and global loans 15% banks (e.g. from KFW, EIB, Rentenbank) Liabilities** 68%

Since 2006 mainly via Pfandbriefe, Capital markets 2016 and 2017 Green Bonds respectively, funding Since 2018 Social Bonds, first Retail Social Bond as well as first Blue Social Bond Customer deposits* Development Banks Capital market Equity capital Other *Treasury perspective without registered bonds held by non-banks ** In relation to total assets 30 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Capital market funding Focus on secured funding and sustainable bonds

. Capital markets funding depends on deposit growth and maturities . Since 2006 focus on secured funding, around EUR 17bn total volume printed so far Funding strategy . Two Senior unsecured Green Bond benchmarks outstanding since 2016 (EUR 500m each) . Three Social Bond issues: First social covered bond (2018) and first Blue Social Bond worldwide (2019) EUR 500m each and first Retail Social Bond (2019)

Placement volume (EURm) Maturity profile (EURm)

2.500 2.500 2.000 2.000 1.500 1.500 1.000 1.000 500 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Pfandbriefe Senior unsecured (Green Bond) Social Bond Pfandbriefe Social Bond Senior unsecured (Green Bond)

31 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Green Bond Programme Green Bonds to refinance renewable energy project business

Renewable energy portfolio: EUR 10.8bn

10.000 8.000 2016 500 Mio. EUR, senior unsecured 6.000 4.000 2017 500 Mio. EUR, senior unsecured 2.000 0 2012 2013 2014 2015 2016 2017 2018

Wind Photovoltaics Biogas Green Bonds

32 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Social Bond Programme First Social Pfandbrief (covered bond) – also for retail clients

2018 EUR 500m, Social covered bond

Social 2019 EUR 500m, Blue Social Bond infrastructure

2019 Retail Social covered bond Social Bonds

33 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Public pfandbrief cover pool Overview Federal Republic of Other Germany * 2.4% 0.3% Federal Cover assets Number Volume States (GER) 7.6% German federal government 18 21

German federal states 159 1.036

German cities and municipalities 5.716 7.766 Cities and . 100% German assets Other cover assets 42 197 municipalities (GER) Total 5.935 9.020 89.7% . High granularity * EURm (Ø-volume EUR 1.5m) . Rating over-collateralization requirements significantly Key figures* exceeded Outstanding bond volume (EURm) 3.500 . Collateral score stable on Rating Moody's Aaa Private low level place- Bearer bonds Over-collateralization required by Moody‘s 1.0% ment 52% 48% NPV over-collateralization 156.8%

Collateral score 2.7% * As of December 2019 Source: Moody’s

34 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Public cover assets in comparison By region*

Germany Greece Ireland Italy Portugal Spain Rest of Europe Others

Deutsche Kreditbank In line with our Stadtsparkasse Hannover Stadtsparkasse Düsseldorf business model Sparkasse KölnBonn M M Warburg 100% German Landesbank cover assets Kreissparkasse Köln BayernLB NordLB LBBW Helaba DB Privat0 u. Firmenkundenbank Unicredit Bank Münchener Hyp DSK Hyp Berlin Hyp Hamburg Commercial Bank DZ Hyp DekaBank SaarLB Aareal Bank Deutsche Hypo Commerzbank Dt. Pfandbriefbank 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

* in % of the cover pool (without “further cover assets” according to para. 20 (2) No. 1 and 2 Pfandbrief Act and derivatives) Source: BayernLB Research, as of 31/12/2019 35 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Mortgage pfandbrief cover pool Overview

Thuringia 6% Baden-Württemberg 4% Cover assets Number Volume Schleswig Holstein 2% Bavaria 4%

Saxony-Anhalt 8% Residential loans 39.220 2.146 Berlin 13%

Housing-industry investors 3.343 4.621 Saxony 11%

Brandenburg 12% Other cover assets 8 310 Saarland 0% . 100% German assets Total 42.571 7.077 Rhineland-Palatinate 1% Bremen 1% Volumen in Mio. EUR . Very high granularity Northrhine-Westphalia Hamburg 3% 14% . Housing-industry investors Lower Saxony 5% Hesse 7% Meckenburg Western are mainly residential Pomerania 9% property companies Key figures* . Rating over-collateralization Outstanding bond volume (EURm) 4.409 Private requirements significantly Rating Moody's Aaa Place- Bearer exceeded ment Bonds Over-collateralization required by 9.5% 51% 39% Moody‘s NPV over-collateralization 57.7% Collateral score 6.7% * As of December 2019 Source: Moody’s

36 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Mortgage cover assets in comparison By type of use*

Residential Commercial Others

Deutsche Kreditbank Share of residential Bausparkasse Schwäbisch Hall PSD Bank Rhein Ruhr PSD Bank Nürnberg housing > 90% INGDiBa Commerzbank SantanderConsumer Bank Wüstenrot Bausparkasse Münchener Hyp DB Privat0 u. Firmenkundenbank Stadtsparkasse Hannover Kreissparkasse Köln Deutsche Apotheker0 und Ärztebank Sparkasse KölnBonn Stadtsparkasse Düsseldorf Hamburger Spk Unicredit Bank NordLB Landesbank Berlin DZ Hyp LBBW Berlin Hyp DSK Hyp Helaba Deutsche Hypo M M Warburg Hamburg Commercial Bank Dt. Pfandbriefbank BayernLB Aareal Bank Natixis Pfandbriefbank SaarLB DekaBank 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

* in % of the cover pool (without “further cover assets” according to para. 20 (2) No. 1 and 2 Pfandbrief Act and derivatives) Source: BayernLB Research, as of 31/12/2019 37 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Investor presentation

6 Contacts

38 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019 Personal

Uwe Jurkschat Head of Funding and Investor Relations Tel.: +49 (0)30 12030-2924 E-Mail: [email protected]

Anna Stawowy Funding and Investor Relations Tel.: +49 (0)30 12030-2910 E-Mail: [email protected]

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40 I Investor presentation I May 2020 I IFRS-data as of 31/12/2019