INFRA BANKING EXPERTS Investor Presentation March 2018

Transcription

1 Investor Presentation March 2018

2 Executive Summary Strong layer of foundation for future growth IFRS / Local GAAP Profit (after Tax) IFRS Local GAAP 18.9m 18.1m 26 New Projects Committed (13 countries) 635m Disbursements 493m Syndication (9 projects additionally EUR 200m legacy) 194m New business contribution IFRS Local GAAP Gross Interest Margin & Commitment Fees 6.3m 7.9m Arrangement fees (PnL ) 1.2m 8.7m + Deferrals (IFRS) / Reserve for syndication (Loc. GAAP) 1.5m 9.0m Well-balanced loan portfolio 69% Austria 67% public sector 21% project finance Modest portfolio risk metrics Stable ø Rating A 89% investment grade 0.0% NPL Strong diversified funding Proven capital market entry deposits tripled to EUR 644m Very solid capitalisation Total capital ratio of 29.9%; CET 1 ratio of 23.5% 2

3 Agenda 1. Company Profile 2. Portfolio 3. Liquidity, Capital & Rating 4. Annual Results 3

4 Kommunalkredit at a Glance Sound business model in the infrastructure market Business model Positive liquidity situation Excellent capitalisation High quality of loan portfolio Kommunalkredit specialises in the structuring and financing of infrastructure and energy projects Focus on: Social infrastructure: hospitals, care homes, universities, schools Transport: track-based transport, roads, tunnels Energy and environment: renewable energies Management of funding programmes by Kommunalkredit Public Consulting (KPC) The loan portfolio is refinanced using covered bonds, unsecured bonds, promissory notes (SSD) and customer deposits Total capital ratio of 29.9% (total capital: EUR 297m) CET 1 ratio of 23.5 % (common equity capital: EUR 233m) as at Dec 31, Leverage ratio of 7.3% NPL ratio of 0.0 % as at Dec 31, ø Rating: A; 89% investment grade Majority with Austrian borrowers from public and municipal sector Ownership structure 99.78% Interritus Ltd (UK) and Attestor Capital LLP (IRL) 0.22% Österreichischer Gemeindebund (Austrian Association of Municipalities) 4

5 Kommunalkredit s Commitment Specialised & Real asset dedicated bank with pure infrastructure focus Kommunalkredit s commitment Kommunalkredit covers the entire life cycle of a project We offer management of assets over the long term Kommunalkredit provides tangible benefit to the community: Economic dynamism Urban development and renewal Job creation Climate change Social cohesion We enable sustainable infrastructure investments that improve the quality of people s lives Infrastructure investments can serve as a powerful tool for answering social needs and fundamentally increasing the general well-being of communities We focus on secure, safe and sustainable yield to our investors Kommunalkredit as partner of choice for long term commitment 5

6 Volume EUR bn Deals Market Environment Growing European infrastructure market 1 Financing Type & Infrastructure Sector Distribution 2 EUR bn Equity Financing Debt Financing Bond Financing European Key Trends Massive investment needs in Europe: EUR 150bn to EUR 200bn p.a. Cuts due to governments austerity measures led to a backlog in investment activity International pressure on EU to increase investments Large investments in rail and road infrastructure in most W/E countries Commitment to increasing share of renewable energy Rising rates of refinancing in EU-peripheral countries (IE, ES, PT) Greenfield projects mostly in the new EU-members PL, SK etc. Increased competition, in turn, is pushing down the yields on wellunderstood and low-risk infrastructure investments Energy Transmission Roads Airports Offshore Wind Onshore Wind Closed Deals in Source: InfraDeals 1) Presented volumes include projects with known share of equity, debt and bond financing 2) Europe represents approx. 28% of Global Infrastructure & Energy Market, global analysis to follow in due course Rail UK ES FR CEE & TR SWE IT DE Rest UK ES FR CEE & TR SWE IT DE Rest 6

7 Business Model Balance sheet light approach Captive Asset Flow Money Flow Corporates Developers Investors/ Advisors Secondary distressed Banks Real Money Accounts Family Offices Funds Origination Primary market Self-originated projects Employing structuring capabilities Financing along the capital curve Secondary market Opportunities at a premium Refinancings/Strategic positions Portfolio acquisition Portfolio Management Originate to distribute (placement criteria) Servicing portfolio management Asset management via own AIF structure Distribution Insurance companies Pension funds Family offices Investment funds Financial institutions 7

8 Focus on four Segments Segments and key clients Energy & Environment Social Infrastructure & Communications Technology Transport Programme Management Key clients Energy supply and distribution Renewable energy Water supply and treatment Waste management and disposal Kindergartens, schools and universities Hospitals and nursing homes Police and court buildings, prisons Administrative buildings Other public facilities Data&comm networks Fibre optic networks Roads, bridges, tunnels Rail/light rail, rolling stock Airports Ports, waterways Management of public support schemes Consulting services in the area of climate finance Private infrastructure developers and operators Financial Investors Utilities Cities and municipalities Local and regional authorities Associations Public sector entities 8

9 Focus on Core Europe Core markets: Austria, Germany, France, Spain, UK etc. Core markets Locations: Vienna, Frankfurt 9

10 Committed Owners Ownership structure and supervisory board members Shareholder Structure Supervisory Board Members Interritus Limited 99.78% Attestor Capital/ Trinity Investments 55% 45% Österreichischer Gemeindebund 0.22% Patrick Bettscheider, Chairman/Interritus Limited Christopher Guth, Deputy Chairman/Attestor Capital Friedrich Andreae/Attestor Capital 90% 100% Kommunalkredit Austria AG 100% Katharina Gehra /Interritus Limited Jürgen Meisch/Achalm Capital GmbH Kommunalkredit Public Consulting GmbH ( KPC ) Kommunalkredit Beteiligungs - und Immobilien GmbH ( KBI ) Kommunalkredit Vermögensverwaltungs GmbH 100% 45% 50% Martin Rey/Maroban GmbH Franz Hofer/Delegated by the Staff Council TrendMind IT Dienstleistung GmbH Kommunalnet E Government - Solutions GmbH Kommunalleasing GmbH Patrick Höller/Delegated by the Staff Council Renate Schneider/Delegated by the Staff Council 1) Through management and investment companies Satere Beteiligungsverwaltungs GmbH and Gesona Beteiligungsverwaltungs GmbH (Austria) 10

11 Value Proposition Comprehensive strategy for sustainable growth Strategy and Business Model Realisation of Balance Sheet Light Model Strong and close client relationships spanning from top infrastructure sponsors, construction companies, equity investors to banks & financial advisors Establish captive distribution channels into RMAs as key element of de-risking and generating additional fee income Profitable hold positions ensure steady carry Lean internal management & process structure Shareholder Support Long term commitment by shareholders, no firm exit point Pursuing a sustainable growth strategy Willingness to further strengthen capital if necessary, also taking into account dividend payments Provided by additional authorised capital ( Genehmigtes Kapital ) of EUR 79.7m entered into the company register; facilitating future capital increases (no annual general meeting needed) Owners stress objective for conservative dividend policy Shareholder network supports Kommunalkredit franchise (inter alia on the origination & distribution side) Key Team Powerful origination team with extensive experience throughout the bank s targeted key markets, geographies and industries Track record of landmark transactions demonstrating financial acumen and sound judgement of key team Complementary skill set and outstanding execution capabilities lay the foundation for a constant deal flow in the future Deep geographic footprint in Kommunalkredit s key markets and access to a worldwide network of best-in-class clients, equity sponsors, banks and advisors Portfolio Evolution Investment size: EUR 15m-75m main currencies EUR and GBP Average project finance portfolio rating of BBB- Attractive risk/return profile and shorter durations Expand geographical focus on Europe including CEE Broaden product range (e.g. mezzanine) coupled with tight risk mgm t Diversification of asset classes within core competence area 11

12 Agenda 1. Company Profile 2. Portfolio 3. Liquidity, Capital & Rating 4. Annual Results 12

13 Portfolio of Kommunalkredit (1/2) High credit quality of loan portfolio Average rating of A 52 % of loan exposure rated AAA/AA; 89 % investment grade (IG) NPL ratio of 0.0 % Loan portfolio by rating 1 in EUR m, as at H1 1,596 BBB 24% BB 11% AAA 1% Ʃ EUR 2.5bn AA 49% 1,286 1,243 A 14% 89% Investment grade AAA AA A BBB <=BB 1) Exposure spread mapping table on S&P ratings scale Source: Internal Risk Report as at

14 Portfolio of Kommunalkredit (2/2) Focus on Austria (69%) and public sector (67%) Prevailing Austrian exposure at 69% Well balanced portfolio with increasing project finance and prevailing Austrian municipalities Continuing high portfolio quality: Stable ø Rating A 89% investment grade Loan portfolio by region in EUR m, as at H1 2,138 1,802 1,744 Eurozone 17% EU/Rest 13% Other 1% Non-EU Europe < 1% Ʃ EUR 2.5bn Loan portfolio by borrower type in EUR m, as at H1 1,575 Muni (EU) 2% Credit Institutions 2% Companies 5% Utilities 6% PSEs 15% Ʃ EUR 2.5bn Muni (Austria) 50% Austria 69% 1,297 1,267 Project financing 21% Austria Eurozone EU/Rest Non-EU Europe Other 1) Eurozone without Austria 2) Switzerland 3) Turkey 1) 2) 3) Muni (Austria) Muni (EU) PSEs Utilities Credit Institutions Muni..Municipalities PSE.. Public Sector Entities Project Companies financing 14

15 Risk Profile Close monitoring of watchlist exposures Two exposures on watchlist - risk class 1 (intensive management performing) Orderly payment of capital and interest No exposures in default according to Basel III NPL ratio of 0.0 % Overall risk provisions (non-specific) of EUR 44m available Non-watchlist vs. watchlist exposure in EUR m, 2016 H1 Watchlist exposure by risk class in EUR m, 2016 H1 Non-Watchlist Exposure 2,768 2,900 2,844 Risk class Risk class 2 0 Watchlist Exposure Risk class 3 Non Performing Loans H H

16 Bonds Loans New Business Earnings Power Success story in League Tables 1 Rank Company Total (USD m) No of Deals 29 Banco de Sabadell Barclays Commerzbank Mizuho Bank Siemens Financial Services Kommunalkredit Austria AG Macquarie Capital La Banque Postale Allied Irish Bank (AIB) Structured Finance HSBC Helaba Landesbank Bayern LB Bankia Landesbank Baden-Württemberg (LBBW) Deutsche Zentral-Genossenschaftbank (DZ Bank) Investec Rank Company Total (USD m) No of Deals 16 UniCredit Group TradeRisks Limited = Banca Akros = Intesa Sanpaolo = Kommunalkredit Austria AG Barclays ING Group (ING) Natixis = Clearstream Banking S.A = Euroclear Bank Commerzbank % Transport 38% 26 Projects in 13 Countries EUR 635 m New Business 60 % Social Infrastructure & Telecoms 23% Energy & Environment 39% 1) League Tables provided by Inframation Group 16

17 New Business - Projects 1 Line-up of successful projects Telecom EUR 400mn Corporate Finance Arranger, Senior Lender Bulgaria Energy Efficiency EUR 1.31bn Acquisition Finance Senior Lender Germany Solar PV Portfolio Approx EUR 200mn Senior Lender Spain Transportation EUR 15mn Corporate Financing Arranger, Senior Lender Spain Pedemontana Veneta Road EUR 1.22bn Joint Bookrunner, Underwriter Italy Onshore Windfarm EUR 1.29bn Senior Lender Italy Telecom EUR 240mn Acquisition Finance Co-Arranger, Sen Lender Lithuania Berresgasse School Campus EUR 46mn PPP Advisor of the winning consortium Austria Public Finance EUR 20mn Public Finance Arranger, Senior Lender Austria Electricity Distrib. Utility PLN 1.53bn MLA, Senior Lender Invitel Telecom EUR 217mn Acquisition Finance MLA, Senior Lender A 21 Motorway EUR 182mn MLA, Senior Lender Zagreb Airport EUR 195mn Senior Lender A2 - Autostrada Wielkopolska II EUR 400mn MLA, Senior Lender Waste to Energy EUR 127mn Senior Lender Waste to Energy GBP 505mn Senior Lender ELCH - East Lothian Hospital GBP 78mn Senior Lender Gipuzkoa Waste to Energy EUR 240mn MLA, Senior Lender Poland Hungary Spain Croatia Poland Germany Great Britain Great Britain Spain Energy EUR 125mn Utility Finance Senior Lender Spain Bursa Healthcare Campus EUR 503mn EBRD B-Loan Participant Turkey BNRG Solar PV Portfolio GBP 19.8mn MLA, Sole Mezzanine Lender Great Britain Battlestar Nursing Homes EUR 313mn Real Estate Finance Senior Lender Germany Parc Adfer Limited Waste to Energy GBP 179mn Senior Lender Great Britain Antilope - Onshore Windpark Portfolio EUR 100mn Senior Lender France K3 CHP Limited Waste to Energy GBP 468.5mn Senior Lender Great Britain Solar PV EUR 10mn Arranger, Senior Lender Germany A15 Road EUR 883mn Senior Lender Netherlands 1) Includes 26 Financings and 1 Advisory 17

18 Agenda 1. Company Profile 2. Portfolio 3. Liquidity, Capital & Rating 4. Annual Results 18

19 Weighted average term in years Funding Structure Diversified debt structure Funding structure in %, as at % 11% 23% 4% 15% 10% 7,3 7,5 9% 74% capital market instruments Ʃ EUR 2.8bn 15% 3% 4% 5% 7% 4% 5% 9% 9% 11% 8% 11% 10% 10% 12% 19% 11% 11% 20% 21% 15% 15% 16% 17% 15% 15% 16% 39% 34% KA Direct deposits 30% 28% Covered Bonds Senior Unsecured Promissory Notes TLTRO II Customer Deposits Interbank Deposits Wholesale deposits 35% 34% Retail deposits 25% deposits (+77% YoY) 75% capital market (-15% YoY) Drivers for funding Strong start of retail deposits: EUR 116m as at since Sept, market entry in Germany Stable trend of wholesale deposits at EUR 529m Capital market re-entry: inaugural issue of 4y E300m social covered bond at ms+38bps (30bps to date) > E50m MTN issues senior unsecured ytd EUR 2.1bn in capital market instruments EUR 965m in covered bonds EUR 417m in unsecured bonds EUR 418m in promissory notes EUR 314m in long-term tenders (TLTRO II) EUR 688m in deposits of which EUR 529m in wholesale deposits of which EUR 116m in retail deposits of which EUR 43m in interbank deposits Additional ECB eligible assets - EUR 205 m Assets Liabs

20 Covered Bond Programme Cover pool structure Cover pool by state in % 1% 1% 2% 2% 2% 2% 2% 2% Poland Cover pool by rating in % 2% 2% 1% 2% AAA Cover pool: EUR 1.26 bn () Very stable pool structure 80.6% with AAA/AA rating 96% 97% 97% 97% Germany Austria 75% 75% 75% 79% AA A High asset quality: 0.0% NPL ratio 78.7% loans; 21.3 % bonds Active management Q1 H1 Q3 24% 23% 24% 20% Q1 H1 Q3 Monitored by government commissioner according to strict legal regulation Cover pool by Austrian province in % Cover pool by borrower type in % Standardized, high-quality cover pool reporting 12% 12% 13% 12% 13% 13% 14% 13% 14% 14% 13% 14% 22% 22% 23% 22% 22% 22% 23% 22% Vienna Tirol Salzburg Vorarlberg Carinthia Burgenland Styria 17% 17% 18% 18% 8% 8% 8% 8% 23% 23% 22% 22% 48% 48% 48% 48% Other Province Guarantee State Guarantee Muni Guarantee Prov Covered bonds: EUR 0.97 bn () High level of legislative security (Austrian Covered Bank Bond Act) 78.6% fixed-interest bonds 76.3% issued publicly 10.0% confirmed voluntary OC Q1 H1 Q3 Lower Austria Upper Austria Q1 H1 Q3 Municipality 30.3% current OC 20

21 Social Covered Bond (1/2) Summary of the issuance 2-weeks Roadshow in Austria and Europa Second Opinion by Sustainalytics: robust, credible and transparent bond with positive social impacts More than 40 renowned investors, hereof 50% ESG investors 1.8-fold oversubscription (orderbook of EUR 530 m) Solid demand led from spread of low 40 bps to 38 bps re-offer Due to strong demand in the secondary market further tightening to actual 31bps Leads: Commerzbank, Deutsche Bank, ING, Raiffeisen International 18% 8% 7% 7% 30% Austria Germany Nordics UK/Ireland Italy other 56% 3% 1% 2% 38% Banks Funds Government/Agencies Insurance Retail 30% Link: 21

22 Social Covered Bond (2/2) Case studies of the issuance 22

23 ASW Mid spread in bps Secondary market Reduction of ASW spreads on public issued covered bonds Kommunalkredit EUR & CHF Covered Bonds ASW Spread History, January 2016 January /02/2016: Moody s Rating Review closed; Baa3 March : Moody s CB Rating Upgrade; Baa2 August 2016: Release of Semiannual Report 2016 March : Release of Annual Report 2016 May : Announcement of Repurchase Offer July : Issuance Social Covered Bond March 2016: Release of Annual Report 2015 Covered Bond 3/ due to low remaining maturity not included Source: company information, 23

24 Ratings Senior rating & covered bonds rating Senior Rating DBRS BBB (low) outlook negative DBRS R-2 (mid) outlook negative Covered Bonds Rating Standard & Poors: A Quotations from current ratings reports DBRS Rating Report, October 10, Good quality and self-funding dynamic of the legacy portfolio which provides the Bank with some cushion in terms of time, capital and earnings Low Risk-Weighted Assets density reflects the good quality of the Bank s legacy portfolio recent significant progress the Bank has made in new business generation in 1H17, which is likely to affect FY results positively, mostly in terms of increased income from fees and commissions. New business at KA has grown slowly in 2016 but DBRS expects it to increase at a faster rate throughout and onwards. a prudent dividend distribution policy going forward remains an important rating factor. Standard & Poors Rating Report, June 13, We have assigned our 'A' ratings to Kommunalkredit Austria's public sector covered bonds. The outlook is stable. The ratings reflect our view of the jurisdictional support for public sector covered bonds in Austria. The available credit enhancement is sufficient to cover the foreign exchange risk. Link: /de/investor-relations/ratings/ Moody s covered bonds rating experienced a 2-notch uplift from Baa3 to Baa1 in. Kommunalkredit announced to terminate the agreement on the rating of covered bonds on November 24,. Moody's withdrew the Baa1 rating assigned to the covered bonds issued by Kommunalkredit on December 14, with publication on February 1,

25 Sustainability Ratings (1/2) «Most sustainable public covered bond programme in Austria» (imug) Kommunalkredit has a long track record in sustainability ratings Very positive (A) for public sector covered bonds With their very positive rating, public sector covered (PSC) bonds of Kommunalkredit are rated as being particularly good at achieving sustainable financing. With %, PSC bonds enjoy the best rating of all 12 Austrian issuers of PSC bonds rated Third-best rating of all 44 issuers of public covered bonds rated Positive (Rating B) for (senior) uncovered bonds With their positive rating, uncovered bonds of Kommunalkredit are rated as being well established. With %, senior bonds enjoy the best rating of all 8 Austrian issuers Fifth-best rating of all 52 issuers of senior bonds rated in the Region Austria/Germany/Switzerland Above-average: 57 points (out of a maximum of 100) Sustainalytics rates the sustainability of Kommunalkredit as being above-average. 25

26 Sustainability Ratings (2/2) Kommunalkredit is very well prepared for green bonds issuances Kommunalkredit is awarded with in total 4 sustainability ratings Prime status (C) a precondition for green bond issues Ratings agency oekom currently rates Kommunalkredit as Prime, or a leading company in its industry. oekom prime status entitles the company to describe its issues as green. rfu Qualified (Rating ba) The Austrian rating agency rfu rated Kommunalkredit with the status "rfu Qualified" (rating result: ba). The "rfu Qualified" status is awarded to the best companies in the industry, which have also been included in the sustainable investment univers of rfu. Rfu is an Austrian company specializing in sustainable investment and, in particular, sustainability analysis. 26

27 Capital Position Stable development of capital Capital Position - Local GAAP in EUR m Capital % % % RWA Proven stable positive trend of total capital and CET % total capital ratio and 23.5% CET1 ratio (), after EUR 11.5m dividend distribution for 7.3% leverage ratio, doubled since privatisation % ) after EUR 11.5m dividend payment for H1 Capital requirement CET 1 Total Capital RWA 1) % Capital Ratio RWA increase due to new business development Capital base increased by retained earnings (+EUR 8.9m), considerably above 2015 level (+EUR 77m or 45%) Dividend/capital guidance: shareholders to support target min. CET1 ratio of 15% when necessary, taking into account dividend payments / capital increases 26

28 Agenda 1. Company Profile 2. Portfolio 3. Liquidity, Capital & Rating 4. Annual Results 28

29 Income Statement IFRS (1/2) IFRS result shows turnaround of business case Waterfall P&L - IFRS in EUR m Outperformance of origination target (NII EUR 34.2m and operating result EUR 7m budgeted) Realization of deferred arrangement fees due to successful placements Strategic: implementation costs for online retail platform cost cutting measures Net trading result from bond buybacks and interest-related changes in FV valuation Taxes: Positive effects from capitalization of tax loss carry forward KF services: public call for bids announced on 5 Feb. under review by Kommunalkredit 28

30 Income Statement IFRS (2/2) IFRS-Annual Results: EUR 18.1 m after tax IFRS-Figures in EUR m 2016 Interest and similar income Interest and similar expenses Net interest income Net fee and commission income Administrative expenses net Placement result Other operating result Operating result Strategic Expenses Income from investments in associates Net trading and valuation result Credit risk result Profit before tax Taxes on income Contributions to the Bank Resolution Fund Bank stability tax Profit after tax

31 Consolid. Balance Sheet - IFRS Total assets slightly reduced to EUR 3.66 bn due to redemptions Assets in EUR k 2016 Cash and balances with central banks 318, ,457.4 Loans and advances to banks 140, ,865.4 Loans and advances to customers 2,091, ,138,929.0 Assets designated at fair value through P&L 605, ,616.0 of which loans 605, ,616.0 Assets available for sale 211, ,950.4 Derivatives 232, ,156.4 Investments in associates Property, plant and equipment 25, ,940.9 Intangible assets Tax assets 27, ,090.2 Other assets 9, ,510.6 Assets 3,663, ,790,805.0 Liabilities and equity in EUR k 2016 Amounts owed to banks 532, ,027.9 Amounts owed to customers 1,038, ,093.0 Derivatives 244, ,347.5 Securitised liabilities 1,468, ,779,165.4 Subordinated liabilities 68, ,846.8 Provisions 7, ,819.6 Tax liabilities ,695.3 Other liabilities 18, ,030.5 Equity 283, ,779.0 of which subscribed capital 159, ,491.3 Of which statutory reserve 14, ,298.2 of which available-for-sale reserve ,290.9 of which non-controlling interests of which other reserves (incl. consolidated result for the year) 108, ,544.2 Liabilities and equity 3,669, ,790, The Kommunalkredit Group comprises Kommunalkredit Austria AG (Bank), Kommunalkredit Public Consulting GmbH (fully consolidated), Kommunalkredit Beteiligungs- und Immobilien GmbH (fully consolidated) and Kommunalleasing GmbH (included at pro-rata book value). 2 Mainly interest-rate swaps and FX forward transactions made to hedge interest-rate and FX risks. The bank does not have a proprietary trading portfolio. 31

32 Asset Portfolio Solid growth of new business Total Assets - Local GAAP in EUR m ,540 2, ,591 New Business: + 306% + 343m 3,269 3,280 2, , , H1 New business Pre-2016 portfolio Other assets New business generation capabilities demonstrated in Asset composition increasingly characterized by origination of new business syndication; 3 % of b/s > 14% of b/s ; disproportionally high contribution to revenue (~14% of b/s -> ~30% revenues) Other assets > revised budget due to build-up of liquidity securities book; further increase planned for 2018 High portfolio quality: ø Rating A, 89% IG, 0% NPL Decrease of pre-2016 portfolio according to run-down plan 31

33 Volume New Business Successful implementation of originate-to-distribute model Waterfall Volume Origination & Syndication 1) in EUR m Committed: + 335% + 489m Disbursed: + 432% + 379m H1 Commitment Disbursement 2) Syndication Net Generation New business disbursements and syndications significantly above budget Foundation for strong track record with EUR 635m commitments 26 projects in 13 countries Well-balanced portfolio mix due to strong diversification in product lines, geographic regions and sectors Decreasing duration in 17 (9.8 to 8.0 yrs) in PF portfolio Strong pipeline resulting in further reduced duration rendering b/s liquid Continuously attractive risk/ return profile with a gross interest margin >300bps 1) Not including syndications out of pre-2016 portfolio of approx. EUR 200m 32

34 Disclaimer This Presentation is strictly confidential and must not be disclosed or distributed to third parties. This Presentation may not be disseminated in the United States, Australia, Canada, Japan or any other jurisdiction where the dissemination or publication of this document would be unlawful. This presentation (the Presentation ), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the United States, Australia, Canada or Japan or any jurisdiction where applicable laws prohibit its viewing, release, distribution, publication or use. This Presentation does not constitute or form part of, and should not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or any solicitation of any offer to purchase or subscribe for any securities in Kommunalkredit Austria AG (the Company ) in any jurisdiction. Neither this Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on, in connection with, or act as an inducement in relation to, a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any such securities. The information contained in this Presentation has been provided by the Company and has not been verified independently. Unless otherwise stated, the Company is the source of information. No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation or on its completeness, accuracy or fairness. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its respective directors, officers, employees, agents or advisers as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation and no responsibility or liability is accepted by any of them for any such information or opinions. In particular no representation or warranty is given as to the achievement or reasonableness of and no reliance should be placed on any projections, targets, ambitions, estimates or forecasts contained in this Presentation and nothing in this Presentation is or should be relied on as a promise or representation as to the future. This Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned to place undue reliance on these forward-looking statements. All information in this Presentation is current at the time of publication but may be subject to change in the future. The Company disclaims any obligation to update or revise any statements, in particular forward-looking statements, to reflect future events or developments. Statements contained in this Presentation regarding past events or performance should not be taken as a guarantee of future events or performance. Prospective recipients should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning such matters and other consequences of a potential investment in the Company and its securities, including the merits of investing and related risks. In receiving or otherwise accessing this Presentation, you will be deemed to have represented and agreed for the benefit of the Company (i) that you are permitted, In accordance with all applicable laws, to receive such information, (ii) that you are solely responsible for your own assessment of the business and financial position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business, and (iii) that you will keep the contents of this Presentation confidential and, in dealing with the information contained in this Presentation, you will adhere to all relevant laws and regulations, including, without limitation, market abuse and equivalent laws and regulations in all relevant jurisdictions. 34

35 Kommunalkredit Austria AG Tuerkenstrasse 9, 1092 Vienna Phone: +43 (0)1/ investorrelations@kommunalkredit.at