DZ BANK Corporate presentation At a glance (1/2)
Cooperative banks 814 Branches 8,566 Customers (mln) 30 Headquarter Frankfurt am thereof `shareholders´ (mln) 18.4 Main Employees 172,300 Employees 32,220 Profit before taxes (€ mln) 7,226 Profit before taxes (€ mln) 1.832 Consolidated total assets (€ bn) 1,476 Consolidated total assets (€ bn) 638
(As of 31.12.2020) (As of 30.06.2021)
Page 2 2021 DZ BANK - Corporate presentation At a glance (2/2) – DZ BANK Group
Common equity Tier 1 capital ratio Profitable Banking Group with profit before taxes as of 30.06.2021 15.3% 15.4% € 1,832 mln 13.7% 14.4%
Second-largest German Banking Group with consolidated total assets of € 638 bn 2018 2019 2020 06/2021 One of the best ratings in the EU banking market (Issuer Credit Rating) Leverage Ratio 7.2% 4.9% 5.6% S&P A+ 4.3% Fitch Ratings AA-
Moody‘s Aa2 2018 2019 2020 06/2021
Page 3 2021 DZ BANK - Corporate presentation Agenda
1. Volksbanken Raiffeisenbanken cooperative financial network
2. DZ BANK Group
3. DZ BANK Group‘s business performance
4. Business segments
5. Contact persons
Page 4 2021 DZ BANK - Corporate presentation 1. Volksbanken Raiffeisenbanken cooperative financial network The three pillars of the German banking sector
Public banking sector Genossenschaftlicher Private banking sector and Bankensektor foreign banks
…
Domestic market 35% 25% < 10% (each) share1
5 Landesbank groups Cooperative central institution Varied Structure DekaBank Specialized cooperative 385 Savings banks companies 814 Cooperative banks
1 Market share according to deposits of private households
Page 6 2021 DZ BANK - Corporate presentation Subsidiarity is key for the cooperative financial network – at its core are the local cooperative banks
Client Business Associations and Service Providers
Umbrella association for the cooperative banking sector . Lobbying . Strategic coordination . Advisory, support and information . Protection scheme . Regional market approach . Customer relationship Regional- and other associations Auditing and consulting associations . Auditing . Consulting and support . Lobbying . Education
Service companies Various cooperative service and technology companies . Banking Software . Central institution . IT-facilities and -support . Specialized service providers . Advertising programmes . Joint market approach . …
Page 7 2021 DZ BANK - Corporate presentation Cooperative protection scheme of BVR The ’Dual System’ of institution protection
BVR-ISG BVR-SE
BVR-Institutssicherung GmbH as direct BVR-Sicherungseinrichtung as institution deposit protection protection and indirect deposit protection
Fulfilment of the legal requirements (EU guideline ’DGSD’1 and German law on deposit insurance) by Additional voluntary protection system since 1934 founding of BVR-ISG in 2015
BVR-ISG is an officially recognised deposit BVR-SE is the oldest, privately financed bank protection system as Institutional Protection Scheme protection scheme worldwide
Institution protection: Measures for the avoidance Safeguarding of depositor compensation by of threatening or impending economic difficulties protection of customer deposits of up to € 100,000 faced by member institutions (preventive avoidance per person per institution of bankruptcy)
Deposit protection (BVR-SE and BVR-ISG) Comprehensive protection for customer deposits held by non-banks, including bearer bonds and certificates issued by the cooperative banks (indirectly via BVR-SE). Direct deposit protection via BVR-ISG up to EUR 100,000 per person per institute.
1 Deposit Guarantee Schemes Directive
Page 8 2021 DZ BANK - Corporate presentation Cooperative protection scheme of BVR Key figures and function
Responsible body is the national association (Bundesverband der Deutschen Volksbanken und Raiffeisenbanken e.V. – BVR)
Monitoring by Federal Financial Supervisory Authority (BaFin)
Comprehensive institution protection for all members, no bankruptcy among members since 1934
Members: 814 Cooperative banks, DZ BANK AG, DZ HYP, DZ PRIVATBANK, Schwäbisch Hall, TeamBank, DVB Bank, Münchener Hypothekenbank
Page 9 2021 DZ BANK - Corporate presentation Consolidated financial statement of the cooperative financial network
2020 2019 Consolidated total assets Profit before taxes (€ mln) 7,226 10,179 3 % Cost/income ratio (%) 65.4 62.2 Loans and advances to customers 891 845 35 % (€ bn) Deposits from customers (€ bn) 938 880 62 % Consolidated total assets (€ bn) 1,476 1,384 Consolidated equity (€ bn) 121.8 116.0 Common equity Tier 1 capital ratio (%)1 16.1 15.5 Cooperative banks Leverage ratio (%, fully loaded) 8.4 7.8 DZ BANK Group Employees 172,300 174,300
Münchener Hypothekenbank (As of 31.12.2020)
1 incl. § 340f HGB-Reserven
Page 10 2021 DZ BANK - Corporate presentation Interaction within the german cooperative financial network
30 million customers, thereof 18.4 million `shareholders´
Shareholders Customer relationship l a i c 814 cooperative banks n a n k i f r o e
v Shareholders Products and services w i t t e a n r e p o o C
Page 11 2021 DZ BANK - Corporate presentation 2. DZ BANK Group Our vision determines the strategic framework of the DZ BANK Group
The most important requirement for the success of the cooperative financial network is the strengthening of the cooperative banks in their market (mandate for The DZ BANK Group will align itself sponsorship). toward the cooperative banks such that the … The high network orientation of the central institution is reflected by the fact that the emphasis is on the interests of the cooperative financial network which is in close proximity to local market conditions and takes into account the respective features of the different market sections.
The basis of the cooperation between cooperative … will further develop banks on the one hand and the central institution and its position as the leading financial specialized service providers of the cooperative financial services provider in Germany. network on the other hand is subject to the principles of subsidiarity, decentralization and regional market responsibility.
Page 13 2021 DZ BANK - Corporate presentation DZ BANK Group: strong brands – strong partners
DZ BANK AG acts as the holding company for the DZ BANK Group
Central institution / Corporate Holding companies bank companies Companies associated with the Central institution / Corporate bank are DZ BANK AG DZ HYP DZ PRIVATBANK VR Smart Finanz
Companies associated with the holding are Bausparkasse Schwäbisch Hall Employees 32,220 R+V Versicherung Profit before taxes (€ mln) 1,832 TeamBank Union Investment Consolidated total assets (€ bn) 638 various other specialized institutions, (As of: 30.06.2021) e.g. ReiseBank
Page 14 2021 DZ BANK - Corporate presentation DZ BANK Group: shareholding structure
Shareholding structure Subsidiaries of DZ BANK AG: of DZ BANK AG ownership stakes
0.5 % 4.8 % 96 %
94.7 % 92 %
100 %
92 %
(€ mln) 97 % Cooperative banks (direct and indirect) 4,663 93 % Other cooperative enterprises 238 25 Other 96 % Total subscribed capital 4,926
status: Dec. 31, 2020
Page 15 2021 DZ BANK - Corporate presentation DZ BANK Group companies: DZ BANK AG – Cooperative central institution
DZ BANK serves as central institution of the Volksbanken Raiffeisenbanken cooperative financial network and commercial bank. It is the central institution for all 814 cooperative banks in Germany, which hold the majority of its shares. Headquarter Frankfurt am Main Under the tagline ‘DZ BANK. Die Initiativbank’, it Employees 5.349 supports the business of the independent Profit before taxes1 (€ mln) 218 cooperative banks in their regions with the aim of strengthening their competitiveness. The Consolidated total assets (€ bn) 348 combination of local customer knowledge and (As of: 30.06.2021) central product expertise has proved to be highly effective.
Additionally DZ BANK AG acts as the holding company for the DZ BANK Group.
1 Profit before taxes of DZ BANK – central institution and corporate bank
Page 16 2021 DZ BANK - Corporate presentation DZ BANK Group companies: DZ HYP – Real estate and Pfandbriefbank
DZ HYP is one of the leading real estate banks and one of the biggest Pfandbrief issuers in Germany.
Hamburg und It acts as specialist, competence center and driving Headquarter Munster force of real estate and public sector financing for the Volksbanken Raiffeisenbanken cooperative Employees 818 financial network and supports the cooperative Profit before taxes (€ mln) 287 banks in their local markets. Consolidated total assets (€ bn) 91.8 With its customer focused and individualized (As of: 30.06.2021) distribution approach the bank acts in its business segments corporate customers, public sector and retail customers.
Page 17 2021 DZ BANK - Corporate presentation DZ BANK Group companies: DZ PRIVATBANK – Center for private banking
DZ PRIVATBANK is the specialist for private banking, investment funds and financing in all currencies within the cooperative financial network. It specializes in individual Headquarter Luxemburg solutions for wealthy individuals. Employees 1,200 The range of services encompasses Profit before taxes (€ mln) 19 traditional asset management, asset structuring, succession planning, foundation Consolidated total assets (€ bn) 22.7 advice and currency loans – always in
(As of: 30.06.2021) cooperation with the local cooperative banks.
DZ PRIVATBANK is based in Luxembourg and has nine locations in Germany.
Page 18 2021 DZ BANK - Corporate presentation DZ BANK Group companies: VR Smart Finanz – Digital loan provider for SME customers
VR Smart Finanz is a subsidiary partner for simple SME solutions within the cooperative financial network. It acts as the expert for simple, fast and tailor-made financing solutions for regional SME customers as well as for self- employed and small businesses customers of the Headquarter Eschborn cooperative banks. Employees 484 Its range of services includes leasing, hire Profit before taxes (€ mln) 0 purchase and loans up to € 750,000. Consolidated total assets (€ bn) 3.5 Corporate customers are enabled to conclude (As of: 30.06.2021) business loans online by using the websites of the Volksbanken Raiffeisenbanken. Additionally VR Smart Finanz offers digital services surrounding financing requirements of corporate customers.
Page 19 2021 DZ BANK - Corporate presentation DZ BANK Group companies: Schwäbisch Hall – Cooperative building society
Schwäbisch Hall is Germany’s largest building society, with 7.0 million customers. It is also one of the leading home finance providers.
Ever since it was established in 1931, Schwäbisch Hall has been firmly anchored in the cooperative Headquarter Schwäbisch Hall financial network. Employees 3,294 The building society’s around 3,300 field agents1 Profit before taxes (€ mln) 54 and about 3,300 inhouse employees provide Consolidated total assets (€ bn) 82.3 customers with expert advice and support.
(As of: 30.06.2021) Schwäbisch Hall is also active in foreign markets (Eastern Europe and China) with about 1.7 million customers.
Page 20 2021 DZ BANK - Corporate presentation DZ BANK Group companies: R+V – Cooperative insurance company
R+V Versicherung is one of the leading insurance companies in Germany and has demonstrated a growth trajectory for many years. It is the second-largest insurer in both Headquarter Wiesbaden the life and non-life insurance sectors. Employees 14,566 More than 8 million customers with over Profit before taxes (€ mln) 482 25 million risks have confidence in the Consolidated total assets (€ bn) 135 Wiesbaden based insurance company.
(As of: 30.06.2021)
Page 21 2021 DZ BANK - Corporate presentation DZ BANK Group companies: TeamBank – Consumer finance provider
TeamBank AG with its easyCredit product family is the liquidity management specialist in the Volksbanken Raiffeisenbanken cooperative financial network.
Headquarter Nürnberg It provides integrated, innovative products and services that give customers easy access to Employees 1,163 liquidity wherever they are and whenever they Profit before taxes (€ mln) 84 want.
Consolidated total assets (€ bn) 9.6 The key elements of the ecosystem are the
(As of: 30.06.2021) customer-friendly finance service ‘easyCredit- Finanzreserve’, the seamless cross-media payment process ‘ratenkauf by easyCredit’, and an online credit agreement service.
Page 22 2021 DZ BANK - Corporate presentation DZ BANK Group companies: Union Investment – Asset manager
The Union Investment Group is the fund management specialist within the cooperative financial network and has been developing investment solutions for retail and institutional Headquarter Frankfurt am Main investors for more than 65 years. Employees 4,000 Over 4,000 employees manage assets Profit before taxes (€ mln) 825 amounting to some € 430 billion. In total, more Consolidated total assets (€ bn) 3.7 than 5 million customers entrust Union Investment with their money. (As of: 30.06.2021)
Page 23 2021 DZ BANK - Corporate presentation DZ BANK AG´s Board of Managing Directors
Uwe Fröhlich Dr. Cornelius Riese Co-Chief Executive Officer Co-Chief Executive Officer
Strategy & Group Development Strategy & Group Development Cooperative Banks/Verbund Legal Communication, Marketing Group Audit Structured Finance Research and Economics
Uwe Berghaus Dr. Christian Brauckmann Ulrike Brouzi
Corporate Banking Services & Organisation Group Finance Investment Promotion IT Bank Finance Group IT-Governance Group Financial Services IT Group Coordination Compliance
Wolfgang Köhler Michael Speth Thomas Ullrich
Capital Markets Trading / Group Risk Controlling Transaction Management Retail Clients / Credit Operations Institutional Clients Credit Services Payments & Accounts Group Treasury Group Human Resources
Page 24 2021 DZ BANK - Corporate presentation DZ BANK rating overview
Bank ratings Issuer Credit Rating A+* Aa2 AA-* Outlook stable stable stable Short-Term Rating A-1* P-1 F1+* Long Term Counterparty Risk Assessment / - Aa2 AA Derivative Counterparty Rating
Issuance ratings Covered Bonds AA+ Aaa - Long Term Deposits - Aa2 AA Preferred A+ Aa2 AA Senior Unsecured Non-preferred A A3 AA- Tier 2 A- Baa1 A
* joint rating for the Cooperative Financial Services Network
Page 25 2021 DZ BANK - Corporate presentation DZ BANK Rating Overview – Sustainability Ratings
DZ BANK Group awarded Prime Status by ISS-ESG - Grade C+
. Awarded Prime Status since 2011
. Confirmation of the C+ rating on 13 December 2019
. Above-average commitment to environmental and social issues
DZ BANK AG DZ BANK Group
AA 22.6 45 . Consistent AA rating . Comparatively low . Based on a sector since 2015 (confirmed corporate comparison the DZ in January 2021) governance risk BANK Group performs on average . Counts among the . Medium risk of leaders in managing experiencing material ESG risks and financial impacts opportunities from ESG factors
CCC B BB BBB A AA AAA 0-10 10-20 20-30 30-40 40+ 0-25 25-50 50-75 75-100
LAGGARD AVERAGE LEADER NEGL. LOW MED. HIGH SEVERE LOW MEDIUM HIGH
Page 26 2021 DZ BANK - Corporate presentation Sustainability activities DZ BANK AG
In 2020, DZ BANK was the lead bank for green, social ESG-Advisory and sustainable transactions with a total volume of more (structuring and than € 27 bn., making it one of the top 3 syndicate banks in placement) the sustainable bond market in Germany.
Promotional loans DZ BANK AG will continue to assert itself as one of the focussing on largest intermediaries for sustainable promotional loans in climate matters Germany with a portfolio of over € 27 bn. in 2020.
With a financing volume of about € 5.7 bn. in 2020, DZ Financing of BANK AG is one of Germany’s largest renewable energies renewable energies financiers (especially wind power and photovoltaics).
DZ BANK‘s sustainability research gives cooperative banks Sustainable the possibility to screen their own investments for ESG- investment matters. The number of classified issuers has now grown to research approx. 5,500.
Page 27 2021 DZ BANK - Corporate presentation Sustainability activities DZ BANK Group
Company Products / solutions Exemplary quantification
€ 61 bn. assets under Sustainable asset management managed according management in sustainable to comprehensive and explicit sustainability criteria assets in 2020
Sustainable products and services in business line Insurances in the renewable property and accident insurance, e.g. insurance energy segment policies for renewable energy plants for 119,715 solar energy systems Sustainable products and services in business line for 1,351 wind turbines life and health insurance, e.g. sustainable fund for 1,085 biogas plants policies in fund-linked pension insurance
Through the financing of Financing of sustainable building, e.g. through sustainable building the CO2 financing new buildings, modernisations and solar emissions reduced by 537,972 energy systems tons in 2020
Approx. 20% assets under Longtime experience in managing sustainable management portfolios in sustainable asset management strategies
Page 28 2021 DZ BANK - Corporate presentation Social commitment of DZ BANK
Wide-ranging activities with a focus on “education”
The DZ BANK Foundation supports science, research and teaching at universities and applied universities as well as exceptional scientific research projects which are directly related to the cooperative philosophy or to banking. Since the 2020/21 funding period, research funding has also focused on thematically changing priorities, such as artificial intelligence or sustainability.
The DZ BANK Foundation supports nearly 30 talented scholarship holders each year through the "Deutschland-stipendium" Scholarship. The support is geared towards universities which focus on business and economics, computer science, or law. The foundation also awards scholarships to the Frankfurt University of Music and Performing Arts.
The DZ BANK Foundation has supported the Senckenberg museum’s expansion with a grant of 100,000 euros for their new exhibition space "Marine Research“ which shows the latest achievements of deep sea research. This engagement recognizes in particular that diversity and sustainability are key principles of the Cooperative Financial Network.
The Active Citizenship is the competence centre for civic engagement of the Cooperative Financial Network of Volksbanken Raiffeisenbanken. A key aspect of Active Citizenship is the national encouragement of citizen foundations.
Page 29 2021 DZ BANK - Corporate presentation Cultural commitment of DZ BANK
Art Promotion Various Engagements Promote · Exhibit · Mediate in the areas of visual and performing arts, as well as music After almost 30 years, the DZ BANK Art Collection will be placed in the care of a foundation set up specifically for this purpose, reflecting the growing importance of the collection. From now on, the DZ BANK Art Foundation will be responsible for promoting art and making it accessible to the public through exhibitions and events.
Art Collection The DZ BANK Art Collection was founded in 1993 and is the corporate collection of DZ BANK AG, based in Frankfurt am Main. It has two main focuses: The first focuses on of DZ BANK photographic forms of expression from 1945 to the present and includes 8,500 works by nearly 900 international artists. Another was added in 2016 with about 1,500 works of art and includes classic genres such as painting and sculpture. This part of the collection consists primarily of works by professors and graduates of the art academies in Düsseldorf and Münster.
Every two years, the DZ BANK Art Foundation awards a scholarship to artists of all ages Scholarship who work with photographic forms of expression. The nomination of the participants is based on proposals from a jury of seven experts.
Since 2019, the DZ BANK Art Foundation has sponsored an exhibition every two years at KIT - Kunst im Tunnel, Düsseldorf, which alternately presents works by artists from the Düsseldorf and Münster art academies to a broad public.
The Städel Museum in Frankfurt and DZ BANK are linked by a long partnership that has repeatedly developed new ways of cooperation between business and art. As part of its 125th anniversary in 2008, DZ BANK donated over 200 photographic works from its art collection to the Städel Museum in Frankfurt. The selected works have become the property of the Städel Museum. The basis for this is formed by a limited liability company which is the owner of the works of art and whose sole purpose is the permanent transfer of the works to the museum.
Page 30 2021 DZ BANK - Corporate presentation Strategic innovation management The innovation management framework at DZ BANK
Strategic innovation management
Trend & technology scouting Ideation Prototyping Implementation Innovation LAB
Trend LAB Sprint LAB Prototyping LAB Within divisions
Data LAB
Transfer to partners within CFN* Process LAB Innovation radar platform
Innovation radar Spin-off GENOhub Trend & technology radar (with Fiducia & GAD, ADG and BVR)
GENOhackathon GENOlab Termination Fintech radar
Collaborations TechQuartier (Fintech-)Startups Foresight & innovation team GENOlabworking
Communication and culture Innovation Round Table Innovation blog Trendscouting team Presentations/publications
* Cooperative financial network
Page 31 2021 DZ BANK - Corporate presentation Innovation LAB Mission Statement DZ BANK Group´s „Think-and-Do-Tank“
… is a platform for creating transparency and connecting people and innovation topics within DZ BANK Group
Innovation LAB … acts on behalf of relevant boards and committees from DZ BANK AG and DZ BANK Group
… explores trends with relevance for DZ BANK’s business models and contributes to the bank’s strategic positioning
Innovation Round Table ) . c incl. Satellites t … systematically creates ideas and solution approaches for its stakeholders’ e
, r
s problems a p n d u t o a r i r t a
t a … helps to substantiate investment decisions through early and efficient n Trend Sprint Prototyping r S
o o , i validation of hypotheses r t LAB LAB LAB b e a a i l t v l r o o a n u
C … works with agile methods and contributes to the organization’s digital
n Data LAB Process LAB Q I
h enablement and corporate culture c e T Innovation enablement ( … is a hub for connecting with startup companies and the fintech world
… provides space for creative thinking and entrepreneurship
Page 32 2021 DZ BANK - Corporate presentation Virtual tools and hybrid methods of working allow for collaboration of greater teams within the LAB
2020: facts & figures Virtual and hybrid collaboration models implemented in all LAB formats Over 250 participants from DZ BANK Group Over 25 projects developed in the Innovation LAB 70 % implementation rate of the projects 96 % recommendation rate of all participants from the Innovation LAB
Page 33 2021 DZ BANK - Corporate presentation Digitization and Innovation DZ BANK Group´s activities
Union Investment DZ BANK R+V Versicherung VR Smart Finanz
DZ BANK Schwäbisch Hall Union Investment R+V Versicherung
TeamBank DZ BANK Schwäbisch Hall DZ BANK
… and more than 60 further innovation projects
Page 34 2021 DZ BANK - Corporate presentation 3. DZ BANK Group‘s business performance DZ BANK Group Key figures as of 30 June 2021
Strong Healthy Risk situation Costs under Solid foundation earnings customer stable control business
€ 1.83 billion € 3.0 billion € 114 million € 2.1 billion 15.4 percent + 18.1% + 6.3%
Profit before taxes Net interest income/ Reversals of loss Administrative Common equity Tier 1 net fee and allowances expenses1 capital ratio commission income
1 Growth rate excluding contributions to bank levy, guarantee funds and UMH‘s initial consolidation of ZBI: +0.7%
Page 36 2021 DZ BANK - Corporate presentation DZ BANK Group Income statement
Jan 1 - Jan 1 - Change € million Jun 30, 2021 Jun 30, 2020 (%) Net interest income 1,423 1,505 -5.4 Net fee and commission income 1,596 1,052 +51.7 Gains and losses on trading activities 0 539 >100.0 Gains and losses on investments 37 -15 >100.0 Other gains and losses on valuation of financial instruments 203 -247 >100.0 Gains and losses from derecognition of financial instruments at AC 6 7 -14.3 Net income from insurance business 522 124 >100.0 Loss allowances 114 -522 >100.0 Administrative expenses -2,142 -2,016 +6.3 Other net operating income 73 130 -43.8 Profit before taxes 1,832 557 >100.0
Page 37 2021 DZ BANK - Corporate presentation DZ BANK Group Income statement by group company
Jan 1– Jan 1– Change € million Jun 30, 2021 Jun 30, 2020 (%) BSH 54 75 -28.0 R+V 482 102 >100.0 TeamBank 84 49 +71.4 UMH 825 264 >100.0 DZ BANK – central institution and corporate bank 218 285 -23.5 DZ HYP 287 106 >100.0 DZ PRIVATBANK 19 27 -29.6 VR Smart Finanz 0 -24 >100.0 DVB 70 -228 >100.0 DZ BANK – holding function -139 -124 -12.1 Other/Consolidation -68 25 >100.0 Profit before taxes 1,832 557 >100.0
X = companies associated with the holding
X = companies associated with the central institution / corporate bank
Page 38 2021 DZ BANK - Corporate presentation Segment Home Savings business / Residential real estate finance
Profit before taxes Operating performance
(€ million) New home savings business Market share in Germany • Home savings: Increase in new (€ billion) (%) business to €14.7 billion 14.7 30.1 31.7 11.9 (H1 2020: €11.9 billion) -28.0% • Home finance: New business rises to €10.3 billion (H1 2020: €9.4 billion), outstripping 75 average market growth 30.06.2020 30.06.2021 31.12.2020 30.06.2021 • BSH has a robust market New home finance business position (market share of 31.7% 54 (€ billion) in Germany) • Fall in profit before taxes in line 10.3 9.4 with expectations, negative impact of low-interest-rate environment, profit before taxes likely to be above prior-year level 30.06.2020 30.06.2021 at the end of the year
30.06.2020 30.06.2021
Page 39 2021 DZ BANK - Corporate presentation Segment Insurance
Profit before taxes Operating performance
(€ million) Life/health Non-life Inward reinsurance • Gross premiums written of Profit before taxes Profit before taxes Profit before taxes €10.6 billion, higher than the (€ million) (€ million) (€ million) figure for the prior-year period of 251 165 120 >100.0% €10.2 billion – increase in all 51 66 segments
• Profit before taxes recovers -69 significantly compared with prior- 30.06.2020 30.06.2021 30.06.2020 30.06.2021 30.06.2020 30.06.2021 482 year period, which had been hit by deterioration in gains and Gross premiums Gross premiums Gross premiums written written written losses on investments held by (€ billion) (€ billion) (€ billion) insurance companies impacted 4.7 4.5 4.2 4.4 by COVID-19 pandemic
• Uncertainty with regard to 1.5 1.5 claims rate trend in non-life insurance in the second half of 102 30.06.2020 30.06.2021 30.06.2020 30.06.2021 30.06.2020 30.06.2021 the year
30.06.2020 30.06.2021
Page 40 2021 DZ BANK - Corporate presentation Segment Consumer finance
Profit before taxes Operating performance
(€ million) Consumer loan new business Loans and advances to • Volume of new business holds (€ billion) customers steady at €1.5 billion in a difficult (€ billion) 1.5 1.5 market environment 9.0 9.0 +71.4% • At around €9 billion, loans and advances to customers also
84 hold steady • Further growth in the number of 30.06.2020 30.06.2021 31.12.2020 30.06.2021 customers (up by 10,000) in a Number of customers fiercely competitive market (thousand) • Year-on-year increase in profit 962 972 49 before taxes, mainly due to positive effects in loss allowances
31.12.2020 30.06.2021
30.06.2020 30.06.2021
Page 41 2021 DZ BANK - Corporate presentation Segment Asset Management
Profit before taxes Operating performance
(€ million) Assets under Management Net inflow from institutional • Increase in assets under (€ billion) clients management to €427.2 billion 427.2 (€ billion) 385.9 14.7 (December 31, 2020: >100.0% €385.9 billion) • Significant year-on-year rise in 825 0.6 net inflows both from institutional clients (€14.7 billion) and from 31.12.2020 30.06.2021 30.06.2020 30.06.2021 retail customers (€9.7 billion) Net inflow from retail clients • Very good increase in profit (€ billion) before taxes due to the encouraging operating 9.7 performance (volume-related income and income from 3.7 264 performance fees) and to positive
effects from the valuation of 30.06.2020 30.06.2021 guarantee commitments after negative effects in prior-year period 30.06.2020 30.06.2021
Page 42 2021 DZ BANK - Corporate presentation Segment DZ BANK – Central institution and corporate bank
Profit before taxes Operating performance
(€ million) Corporate customer Cross-Selling CM I Depositary services • Good operating performance in lending volume1 Corporate Customers (AuD) all divisions (€ billion) (€ million) (€ billion) 299.3 65.0 65.4 119 273.3 • Despite fierce competition, 112 -23.5% stable corporate customer lending volume with €65.4 billion (Dec. 31, 2020: €65.0 billion)
285 • Strong increases also in 31.12.2020 30.06.2021 30.06.2020 30.06.2021 31.12.2020 30.06.2021 depositary services and in sales Joint credit volume Sales of investment Number of payment of investment certificates 218 (€ billion) certificates transactions • Net interest income and net (€ billion) (billions) fee and commission income 14.9 15.3 3.8 4.0 4.1 rise by €115 million 2.4 • Profit before taxes above plan in an unremarkable risk situation;
IFRS-related negative impact on 31.12.2020 30.06.2021 30.06.2020 30.06.2021 30.06.2020 30.06.2021 gains and losses on trading activities in connection with valuation of own issues 30.06.2020 30.06.2021
1 Corporate banking business in Germany and Structured Finance
Page 43 2021 DZ BANK - Corporate presentation Segment Real Estate Finance Business
Profit before taxes Operating performance
(€ million) New business with New business with • New business with corporate corporate clients1 retail clients clients rises from (€ billion) (€ billion) €3.0 billion to €3.7 billion 3.7 3.0 >100.0% • New business with retail 1.4 customers also grows 0.8 (€1.4 billion compared with 287 €0.8 billion in H1 2020) 30.06.2020 30.06.2020 30.06.2020 30.06.2020 • Overall volume of real estate Total volume of real estate finance up from €53.3 billion to finance €54.1 billion (€ billion) 53.3 54.1 • Profit before taxes influenced by very stable operating performance and also by 106 volatility arising from fair value gains and losses in the 31.12.2020 30.06.2021 1 New customer segmentation since July 1, 2020: Housing Sector segment and Commercial Real Estate Investors segment government bond portfolio have been merged to form the new Corporate Clients segment (figures for prior year are approximate)
30.06.2020 30.06.2021
Page 44 2021 DZ BANK - Corporate presentation Segment Private Banking
Profit before taxes Operating performance
(€ million) Assets under Management Net inflows • Good operating performance with (€ billion) (€ million)
assets under management in 20.0 21.8 658 650 private banking up from -29.6% €20.0 billion (Dec. 31, 2020) to €21.8 billion (increase of 9%) and assets under custody up from €139.5 billion to 31.12.2020 30.06.2021 30.06.2020 30.06.2020 27 €169.5 billion (increase of 21.5%) compared with the end of Assets under Custody Lending volume (€ billion) (€ billion) 2020 169.5 19 139.5 • Market conditions remained 5.3 5.3 difficult, with fierce competition and low interest rates • Profit before taxes better than expected, one-off items in prior- 31.12.2020 30.06.2021 31.12.2020 30.06.2021 year period (H1 2020), profit trend for 2021 as a whole expected to be close to prior year 30.06.2020 30.06.2021
Page 45 2021 DZ BANK - Corporate presentation Segment Commercial Financing Solutions
Profit before taxes Operating performance
(€ million) Number of customers Volume of business • Decline in volume of new (thousands) (€ million)
business to €432 million 99 3,218 3,135 (H1 2020: €738 million) 81 >100.0% attributable to COVID-19 pandemic, relaunch of the 'VR Smart flexibel' product, and weakening demand for support 31.12.2020 30.06.2021 31.12.2020 30.06.2021
loans Volume of new business 0 • Increase in the number of (€ million)
customers (up by 18,000) 738 • Mitigating effects of the 432 restructuring process and lower loss allowances help to eliminate loss before taxes 30.06.2020 30.06.2021
-24
30.06.2020 30.06.2021
Page 46 2021 DZ BANK - Corporate presentation Segment Transport Finance
Profit before taxes Operating performance
(€ million) Customer lending volume • Improvement in market (€ billion) situation in maritime sectors thanks to economic growth in 3.9 >100.0% China and the US • Managed scaling back of the 2.5 70 ship and offshore business accelerated • Current volume of customer loans stands at €2.5 billion (was 31.12.2020 30.06.2021 €3.9 billion at end of 2020 and €19.4 billion at end of 2017) • Completion of the two remaining disposals • Profit before taxes boosted by net reversals of loss allowances -228 and by positive valuation effects
30.06.2020 30.06.2021
Page 47 2021 DZ BANK - Corporate presentation DZ BANK Group Diversified funding base
Funding structure Money market funding • Liquidity surplus of the cooperative banks provides € 321.3 bn € 298.7 bn € 320.7 bn the main basis for short-term funding in the unsecured money markets Senior Non-Preferred 8.4 % 5.8 % Funding >1Y 10.9 % • Another important source of funding: Corporate Senior Preferred 35.6 % 40.9 % customers and institutional clients 35.6 % Funding >1Y • Groupwide multi-issuer euro commercial paper 15.3 % program for issuing money market products based Secured Funding >1Y 16.2 % 16.2 % on debt certificates Short-term Funding 37.2 % 40.8 % 37.1 % • In addition, a US CP head office program is used centrally by DZ BANK Frankfurt
Q4 2018 Q4 2019 Q4 2020 Structural liquidity (>1 year) • Funding using structured and non-structured Unsecured short- and medium-term funding capital market products Jun 30, 2021 Commercial paper • Product range for cooperative banks' own-account (institutional investors) investing activities and customer business as well 10% as institutional clients • Covered liquidity through Pfandbriefe / Corporate customers, 21% DZ BANK BRIEFE on a decentralized basis by institutional customers DZ BANK, DZ HYP, and BSH 59% Local cooperative • As at June 30, 2021, the DZ BANK Group had banks 10% participated in the ECB’s TLTRO III program with a Interbanks, Other banks, total amount of approx. €33 billion. central banks
Page 48 2021 DZ BANK - Corporate presentation 4. Business segments Business segments – overview
0 Cooperative Banks / Verbund The cooperative banks get centralized and holistic support from the Regionaldirektoren of DZ BANK AG. 1 Retail Banking s
t Through the four business segments n
e . Retail Banking,
m . Corporate Banking, 2 Corporate Banking g e
s . Capital Markets and
s
s . Transaction Banking
3 Capital Markets e
n DZ BANK Group delivers its strategy and range of services i s
u for the cooperative banks and their customers. 4 Transaction Banking B Besides retail and corporate customers, which are defined as business segments, DZ BANK also offers services for 5 Institutional Clients institutional clients.
Page 50 2021 DZ BANK - Corporate presentation 0 Cooperative Banks / Verbund Holistic support for the cooperative banks from the Regionaldirektor of DZ BANK
Retail / Corporate customers / overall banking management / production bank
Church banks Specialized coop. banks
Key-Account-Management
Exploitation of Relationship management Sparring partner revenue and to cooperative banks in strategic questions market potential as customers and shareholders
Bank management
Page 51 2021 DZ BANK - Corporate presentation 0 Cooperative Banks / Verbund Overall bank management: from the strategic setting to operational implementation
2. 1. Banks‘ own Support deposits (Depot services A) and markets
4. 3. Process Product support solutions
5. Sparring partner
Page 52 2021 DZ BANK - Corporate presentation 1 Retail Banking DZ BANK Group
Investment products/ Payments and cards business Comprehensive range of Real estate finance services via DZ BANK Group‘s ‚Allfinanz‘ Consumer finance approach Competitive products Private banking offered by the group companies in their field of competence at reasonable prices Asset management / Investment products Cooperative customer service Pension plans via local cooperative banks in their region
Insurance
Page 53 2021 DZ BANK - Corporate presentation 1 Retail Banking DZ BANK AG
Orientation to clients in a highly- fragmented market
The cooperative financial network‘s with leading position in structured securities1, among other things market share of more than 38 % in the express certificates product group
Regularly among the top issuers at the “Zertifikate Award”
Digital trading offering: „dzbank-derivate.de“ and VR ProfiBroker / -Trader
“My investment certificates” application allows customers and consultants to experience investments digitally
State-of-the-art market supply data via “myGIS”
1 Source: Deutscher Derivate Verband Market share in the structured securities product group as of 30.06.2021, Market share by volume Page 54 2021 DZ BANK - Corporate presentation 1 Retail Banking GENO Broker GmbH
– GENO Broker combines the advantages of a modern online broker with the proven financial consultancy offerings in branches of cooperative banks.
– Easy access to financial markets worldwide
– Billing against the running accout in one of our cooperative patnerbanks
– Attractive product offerings: free custody of all DZ BANK AG products
– Inexpensive transaction fees
– Securities accounts for all target groups
Page 55 2021 DZ BANK - Corporate presentation 2 Corporate Banking DZ BANK Group
Bank products
Commercial real estate Growth finance business Support the customer with advisory Leasing / Hire purchase / ideas from a single source Loans Stability Factoring The business relationship is guaranteed by one of Europe’s best bank ratings Asset management Safety Financial investments for our customers’ plans for the future based on sustainable cooperation in a strong cooperative financial network Equity finance
Insurance / Company pension scheme
Page 56 2021 DZ BANK - Corporate presentation 2 Corporate Banking DZ BANK AG
Finance
Research
International business
Risk management
Investment products
Payments
Page 57 2021 DZ BANK - Corporate presentation 2 Corporate Banking We are there for our customers: at local, regional and international level
Local Regional International
Hamburg Oldenburg London Moscow Hannover Berlin Frankfurt Istanbul Münster New York Beijing
Düsseldorf Leipzig Hongkong Dresden Mumbai
Coblenz Frankfurt Singapore Jakarta Nuremberg Region Northern & Eastern Germany São Paulo Karlsruhe Region West / Central Germany Stuttgart Region Baden-Württemberg Region Bavaria Central Division Corporate Banking Branch Munich Rep. Office HQ
Page 58 2021 DZ BANK - Corporate presentation 3 Capital Markets DZ BANK AG
Primary Secondary market market
Cooperative Banks
Consulting and Sales in investment and risk management products
Fixed Income Credit Corporate Customers Equities Currencies
Research services
Institutional Clients
Page 59 2021 DZ BANK - Corporate presentation 3 Capital Markets DZ BANK AG
The core task of DZ BANK AG in its role as central institution is liquidity balance and group internal finance.
Liquidity balancing function ... – Unlimited acceptance of liquidity from cooperative banks (corresponds to indirect retail funding) – Short and long-term refinance for the cooperative banks – Internal group finance of DZ BANK Group
.... Leads to risk allocation at DZ BANK – Borrower’s default risk and market price risk – Liquidity risks (guaranteeing solvency, balance of maturity mismatches)
Money / Capital Market Risk balancing via – Money and capital markets – Global business partner network
Page 60 2021 DZ BANK - Corporate presentation 4 Transaction Banking DZ BANK AG
Cooperative banks, Partner banks, Corporate customers, Institutional clients
Central institution
Products Payment processing Value-added services Capital market services
Payment services Advisory Custody services
Page 60 2021 DZ BANK - Corporate presentation 4 Transaction Banking DZ BANK AG
Payment processing Capital market services SEPA payments Securities Instant payments Cash and foreign exchange International payments Derivatives Individual / large sum payment Securities loan / Repurchase agreement transactions Collateral services Cash management solutions Transaction based regulatory reporting VR-FinanzManagement Software Custody
Payment services Custody services Custody services provider for the Credit- and debit cards (issuer) cooperative financial network and Contactless and mobile payments TxB institutional investors Online payments Open-end and closed-end mutual and Cash handling services Portfolio special funds Securities and real assets funds
Value-added services Advisory Customer loyalty solutions for the living Payment processing (national and environment of private customers international) (including VR-MeineReise, VR Entertain Payment services (cards and omni- and VR-ExtraPlus) channel) Added value for the needs of corporate Securities transaction processing customers (e.g. with VR Ticket or VR Capital market and custody services eKiosk) Value-added services
Page 61 2021 DZ BANK - Corporate presentation 5 Institutional Clients DZ BANK Group
Bank products and depositary Our Offers Comprehensive know-how for the Real estate investments execution of money and capital market transactions Insurance and Company pension scheme Our Experts Specialists for primary market Asset management in special transactions, consulting services, risk funds management and experts for structured product solutions Bank products and depositary in Luxembourg Our Solutions Tailor-made product concepts to Fund management and distribution sustainably support corporate goals in a challenging market environment
Alternative investments
Page 63 2021 DZ BANK - Corporate presentation 5 Institutional Clients DZ BANK AG
Capital market products
Research
Risk management
Depositary Institutional Clients
Banks Trade finance Asset managers Insurance companies Pension funds Pension schemes Public institutions Payments Central banks
Page 64 2021 DZ BANK - Corporate presentation 5. Contact persons Contact persons DZ BANK AG
Cooperative banks / Verbund Andreas Deitert Head of Division Cooperative banks / Verbund +49 211 778 – 3600 [email protected] Retail Banking Markus Reitmeier Head of Division capital markets retail clients +49 69 7447 – 42367 [email protected] Corporate Banking Andreas Brey Head of Division Region Bavaria +49 89 2134 – 3140 [email protected] Jörg Hessel Head of Division Region Baden-Württemberg +49 711 940 – 2141 [email protected] Dr. Alexander Hildner Head of Division Northern & Eastern Germ. +49 40 35900 – 200 [email protected] Thomas Löcker Head of Division Region West / Central Germany +49 211 778 – 2100 [email protected] Stephan Ortolf Head of Division Central Division Corp. Banking +49 69 7447 – 99461 [email protected] Gottfried Finken Head of Division Structured Finance +49 69 7447 – 99878 [email protected] Wencke Engbers Head of Division Investment Promotion +49 211 778 – 2200 [email protected] Capital markets / institutional clients Heinz-Theo Brockmann Head of Division capital markets +49 69 7447 – 6962 [email protected] Transaction Banking Gregor Roth Head of Division Transaction Management +49 69 7447 – 2088 [email protected] Matthias Ehringer Head of Division Payments & Accounts +49 211 778 – 1900 [email protected] Peter Tenbohlen Head of Division Operations +49 211 778 – 3000 [email protected]
Page 66 2021 DZ BANK - Corporate presentation Disclaimer
This document is for information purposes only. This document has been prepared by DZ BANK AG Deutsche Zentral- Genossenschaftsbank (“DZ BANK”) and may only be distributed outside Germany in accordance with the local legal requirements, and persons coming into possession of this information and these materials should inform themselves about and observe the local legal requirements.
This document constitutes neither a public offer nor a solicitation of an offer for the purchase of securities or financial instruments. DZ BANK does not act as investment adviser or portfolio manager. This document does not constitute a financial analysis. All evaluations, opinions or explanations contained herein are those of the author of the document and do not necessarily correspond with those of third parties.
DZ BANK assumes no liability for damages caused directly or indirectly by the distribution and/or use of this document and/or for damages which are in any way connected with the distribution/use of this document. Any investment decision with respect to securities or any other financial instruments should be based on an individual advice and a prospectus or information memoranda and under no circumstances on this document.
The contents of this document correspond to the status at the point in time at which the document was drafted. Future developments may render them obsolete without the document’s having been changed accordingly.
Page 67 2021 DZ BANK - Corporate presentation