RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG Investor Presentation August 2018
Disclaimer Exclusion of liability: This presentation is a marketing information of Raiffeisenlandesbank Niederösterreich-Wien AG ( RLB NÖ-Wien ). The presentation is made solely for information purposes and does not constitute an offer, an invitation to make an offer or an investment advice for the purchase or sale of any securities of RLB NÖ-Wien. Furthermore this presentation does not constitute any investment, legal or tax advice. This presentation is not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any other jurisdictioninwhichsuchrelease,distributionorpublication would be unlawful. Statements and views made in this presentation represent theopinionofrlbnö-wienwhichcanbechangedatanytime without prior notice. This document is aimed at experienced and professional investors. Statements and views made in this presentation represent the opinion of RLB NÖ-Wien which can be changed at any time without prior notice. This presentation was drafted as of 16 August 2018 on the basis of information known at that time to RLB NÖ-Wien. The information contained herein has partly been based on other sources that RLB NÖ-Wien believes as reliable. RLB NÖ-Wien however accepts no liability or responsibility with respect to the information from such other sources. Furthermore information contained in this presentation may change or turn out to be incorrect in the future. RLB NÖ-Wien therefore accepts no liability or responsibility for the accuracy, the completeness or the being up-to-date of the information in this presentation. Furthermore, rounding differences may arise in tables and graphs. Although this presentation was carefully edited, the possibility of printing errors cannot be excluded. Prospectuses: Complete and extensive details on RLB NÖ-Wien as well as on its Debt Issuance Programmes should be taken from the Austrian base prospectus dated 18 May 2018 or the Debt Issuance Programme Prospectus dated 8 June 2018 (including supplements). These documents are available at the premises of RLB NÖ-Wien, at Friedrich-Wilhelm-Raiffeisen-Platz 1, 1020 Vienna, and may be obtained there at its usual business hours. The prospectuses are furthermore published on the website of RLB NÖ-Wien (www.raiffeisenbank.at/investoren/angebotsdokumente). 2
Raiffeisen in Austria founded 1886 in Mühldorf 2 million members approx. 58,000 employees Raiffeisen was the most valuable brand in the Austrian financial service sector in 2017 4 million customers approx. 1,500 independent cooperatives operating locally in the following areas: RAIFFEISEN BANKS WAREHOUSES DAIRIES OTHER COOPERATIVES Nearly every second Austrian citizen is client of a Raiffeisenbank Lagerhaus cooperatives are strong economic partners and important local suppliers in Austria s rural areas 95 per cent of Austria s milk is processed here cooperatives in various industries 3
Raiffeisen Banking Group in Austria Consolidated Total Amounts Sep. 2017 2016 Total nonbank deposits 105,745 102,979 savings deposits 49,109 48,876 demand deposits 43,179 40,134 time deposits 12,399 12,972 Investment funds 45,545 43,616 Loans to domestic nonbanks 96,248 93,870 EUR million Source: Raiffeisen Blatt 1/18 Austria s largest banking group Represents more than a quarter of the Austrian banking system Nationwide branch network of 407 independent Raiffeisen banks with 1,500 branches and offices About 1.7 million members; about 25,000 employees in Austria Raiffeisen Deposit insurance schemes in addition to the mandatory bank deposit insurance 4
Structure of Raiffeisen Banking Group 1.7 Million Members 407 Independent Raiffeisen Banks 8 Raiffeisen Regional Banks Raiffeisen Bank International 5
Raiffeisenlandesbank NÖ-Wien Key Highlights RLB NÖ-Wien is one of the largest banks in Austria Has a leading part in the very strong Raiffeisen sector It is the central institution of the Raiffeisen Banking Group NÖ-Wien (which has a marketshare of about 42 per cent (2016)) RLB NÖ-Wien is the largest owner of RBI (22.7 per cent) which is listed at the Vienna Stock Exchange As a universal bank it focuses on retail business and privat banking SME customers and commerce customers municipal sector Very diversified liquidity profile with ample funding sources It is one of the largest Austrian issuers of covered bonds RLB NÖ-Wien Moody's Rating Long-term Senior Unsecured Debt Rating Baa1 Outlook stable Adjusted Baseline Credit Assessment baa3 Subordinated Debt Ba1 Last Rating Action 03/11/2017 6
RLB NÖ-Wien Overview 2016/ 2017 RLB NÖ-Wien Balance Sheet 2017 2016 Loans to customers 11,614 11,818 Deposits from customers 7,768 7,618 Savings deposits 1,476 1,532 Bond issues 5,712 5,827 Total own funds 3,149 2,706 EUR million RLB NÖ-Wien Ratios* 2017 2016 Core Tier 1 ratio 19.1% 14.2% Total own funds ratio 24.4% 20.4% Total Capital 24.4% 19.7% 20.3% 20.4% 19.1% 13.8% 14.2% 12.2% 2014 2015 2016 2017 Common Equity Tier 1 ratio Total Capital ratio Note: figures for CRR RH NÖ-Wien credit institution group * As RLB NÖ-Wien is part of the Raiffeisen-Holding NÖ-Wien credit institution group, the amounts regarding own funds were determined for the credit institution group in accordance with the requirements of the Capital Requirements Regulation (CRR and the Austrian Banking Act). Consolidated net profit/loss (IFRS) 559 RLB NÖ-Wien with total assets of EUR 25.7 billion (31/12/2017) is one of the largest banks in Austria and has a solid equity base (CommonEquityTier1ratio:19.1%). Remark: Due to the initial application of IFRS 9, RLB NÖ-Wien expects a reduction in the Common Equity Tier 1 ratio of 40 to 60 basis points. 145 65 2013 2014 2015 2016 2017 IFRS -249-64 EUR million 7
Ownership Structure of RLB NÖ-Wien 58 Raiffeisen Banks in Lower Austria Other (e.g. warehouses) 79.5% 20.5% 20.9% Raiffeisen-Holding Niederösterreich-Wien 79.1% Raiffeisenlandesbank Niederösterreich-Wien 8
Raiffeisen Banks in Lower Austria Raiffeisen banks NÖ - Balance Sheet 2016 2015 Raiffeisen banks NÖ 2016 2015 Loans to customers 13,024 12,439 Customers 965,000 930,000 Savings deposits 10,704 10,775 Branches and offices 484 490 Total own funds 2,034 1,896 Employees 2,974 3,103 Total assets 21,659 20,766 EUR million data without RLB NÖ-Wien RLB NÖ-Wien s shareholders are 58 (2017) independent cooperative banks, which are strongly anchored in the region. The Raiffeisen banks in Lower Austria are the leading banking group in Lower Austria, with a market share of about 42 per cent (2016). Key business areas of the Raiffeisen banks are services for retail customers and business with regional small and medium sized companies. 9
Raiffeisen-Holding Niederösterreich-Wien One of the largest holding companies in Austria Investments in Austria and abroad The portfolio of investments comprises four core business areas: Universal finance Industry Media Real estate Most important investment: RLB NÖ-Wien Further substantial investments in the different segments are: Agrana, Südzucker, Leipnik- Lundenburger Invest, Strabag, NÖM, Kurier Raiffeisen-Holding NÖ-Wien - Group 2017 2016 Total assets 27,236 27,279 Financial assets 4,362 4,037 Entities accounted for using the equity method 3,911 3,479 Loans to banks 4,282 5,462 Loans to customers 11,320 11,537 Total Own Funds 3,149 2,706 Own funds ratio *) 24.4% 20.4% Net interest income 98 159 Net group profit 713 141 EUR million *) RH NÖ-Wien credit institution group (according to CRR) Source: Financial Statements 2017 - IFRS 10
Participation of RLB NÖ-Wien in RBI Raiffeisenlandesbank Niederösterreich-Wien other Raiffeisen Landesbanken Free Float 22.7 % 36.1 % 41.2 % Raiffeisen Bank International 11
Region Lower Austria/Vienna 3.5 million inhabitants of the core region represent 40 per cent of the Austrian total population. Vienna has the second largest number of German speakers worldwide and is the sixth largest city by population in the European Union. In the International Mercer-Study about quality of life Vienna has achieved the first rank nine times in row. The region is a hub and starting point for the Eastern Europe operations of numerous companies. 12
RLB NÖ-Wien in Vienna RLB NÖ-Wien services approx. 260,000 clients in Vienna. Raiffeisen in Vienna 2017 2016 Customers 260,000 270,000 Branches and offices 31 41 Employees 1,202 1,176 Market share in Vienna (2016) 40% 33% 15% Retail customers Corporate customers Trade- and commerce customers Business areas: Corporate customers Trade and commerce customers Private Banking Retail customers Municipal customers 13
Debt Issuance Programmes EUR 5 billion Austrian Debt Issuance Programme Domestic bond issues Senior, subordinated and covered bonds Under Austrian law Approval by FMA EUR 5 billion Debt Issuance Programme International bond issues Senior preferred, senior non-preferred, subordinated and covered bonds Under German law Approval by CSSF, notification to Austria and Germany Stand-Alone-Documentation Promissory note loans Registered bonds Under Austrian and German law These and other documents are available on the IR-site: www.raiffeisenbank.at/investoren/angebotsdokumente 14
RLB NÖ-Wien - Funding Funding structure New issue amounts 2.313 31% 14% 33% 22% Interbank Sector Funding Customer Deposits Issues 1.080 1.009 2.005 673 1.429 943 610 EUR million, as of 31/12/2017; total: EUR 21.7 bn EUR million, as of 31/12/2017 2010 2011 2012 2013 2014 2015 2016 2017 Maturities bond issues Status bond issues 943 922 524 703 670 522 632 564 634 724 2.703 Covered Senior 36 105 60 2.888 Subordinated 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028>2028 EUR million, as of 31/12/2017 EUR million, as of 31/12/2017; total: EUR 6.3 bn 15
Cover Pool of Assets Scheme of RBG NÖ-Wien Participating Raiffeisen Banks premium Raiffeisenlandesbank Niederösterreich- Wien mortgage loans* mortgage loans* Cover pool of assets issues covered Covered Bond * Loan remains in the balance sheet of RB or RLB 16
Core Region Cover Pool of Assets 100 per cent. Austrian real estates 98 percent in the core region (Vienna, Lower Austria, Burgenland) 39 independent, regionally-based Raiffeisen banks currently provide mortgage-backed loans in the cover pool of RLB NÖ-Wien. Raiffeisen Landesbank Burgenland takes part in the cover pool programme of RLB NÖ-Wien. High granularity with approximately 13,000 individual loans of participating Raiffeisen banks. 193 224 169 125 85 Contributed loan volume per Raiffeisen bank in EUR mn.: 1 1 3 3 4 4 5 5 5 5 6 9 9 9 10 13 16 16 17 18 21 28 29 35 36 37 41 44 55 56 65 68 70 73 17
Mortgage-backed Pool of Assets Key Facts of assets in the cover pool Rating: Aaa Collateral Score: 7.5% TPI Leeway: Total assets in the cover pool in EUR mn.: 1 3,998* Origination: Number of loans: 100 per cent. Austria 20,923 Average credit volume: EUR 186,836 Number of borrowers: 15,271 Number of properties: 22,394 Weighted average remaining life of bonds: 5.6 years Weighted average remaining life of cover pool: 8.3 years as of 31/03/2018; *) as of 30/06/2018 Distribution of loans by type of use Over-collateralisation 3,998 Cover Pool as of 30/06/2018, in EUR mn Structure 3,130 Issued Bonds 25% 40% Multi-Family Non-profit housing associations Commercial Originator Interest rate type RLB 56.4% fixed 75.5% RBen 43.6% variable 24.5% 17% 18% Residential Currency EUR 97.3% CHF 2.7% as of 31/03/2018 as of 31/03/2018 18
Public-Sector Pool of Assets Key Facts of assets in the cover pool Rating: Aaa Collateral Score: 25.8% TPI Leeway: Total assets in the cover pool in EUR mn.: 2 1,054* Origination: Number of loans: 100 per cent. Austria 1,132 Average credit volume: EUR 936,217 Number of borrowers: 268 Weighted average remaining life of bonds: 2.0 years Weighted average remaining life of cover pool: 25.5 years as of 31/03/2018, *) as of 30/06/2018 Over-collateralisation 1,054 Cover Pool as of 30/06/2018, in EUR mn 345 Issued Bonds Main country regional distribution Structure Originator RLB 81.2% RBEN 18.8% 91% 9% Lower Austria Rest of Austria Interest rate type fixed 13.6% variable 86.4% Currency EUR 100.0% CHF 1.5% as of 31/03/2018 as of 31/03/2018 19
Raiffeisen Institutional Protection Schemes (IPS*) Raiffeisen Bundes-IPS (Federal IPS in Austria) RBI Raiffeisenlandesbanken Raiffeisen Holding NÖ-Wien Raiffeisen Bausparkasse Raiffeisen Wohnbaubank Posojilnica Bank Raiffeisen Landes-IPS Niederösterreich-Wien (Regional IPS in Lower Austria) Raiffeisen Holding NÖ-Wien RLB NÖ-Wien AG Raiffeisen banks in Lower Austria Institutional Protection Schemes according to Article 113 par. 7 and Article 49 par. 3 Capital Requirements Regulation (CRR) Main Requirements according to CRR: contractual liability arrangement which ensures liquidity and solvency of the participating institutions systems for monitoring and classification of risk own risk review annualy published consolidated report (balance sheet, P&L report, situation report, risk report) elimination of multiple use of elements eligible for own funds predominately homogeneous business profile Essential advantages of IPS for the participating institutions: holdings in own funds instruments of all institutions in the IPS have not to be deducted 0 per cent risk weight for exposures to participants of IPS derivate contracts between IPS members must not be cleared over a CCP * IPS according to Article 113 par. 7 and Article 49 par. 3 Capital Requirements Regulation (CRR) 20
Raiffeisen Deposit Insurance Austrian Raiffeisen Deposit Insurance Mandatory bank deposit insurance and investor compensation according to Federal Act on Deposit Guarantee Schemes and Investor Compensation by Credit Institutions (ESAEG) (maximum EUR 100,000) Raiffeisen Banking Group s Solidarity Association Voluntary support for any member Raiffeisen bank that experiences economic difficulties Solidarity co-operatives at the provincial level Support mechanisms for troubled member banks Raiffeisen Deposit Guarantee Association Legally binding form Two levels Retained earnings of all member Raiffeisen banks are used (according to the individual economic capability) About 94 per cent of all deposits at Raiffeisen banks are insured by the Raiffeisen Kundengarantie-Gemeinschaft Österreich, including: customer deposits, bonds, promissory note loans 21
RLB NÖ-Wien Group Balance Sheet (IFRS) Assets 2017 2016 Cash and balances with the central bank 1,044,012 384,707 Loans to other banks 5,443,424 6,261,466 Loans to customers 11,613,792 11,818,321 Impairment allowance balance -187,599-242,705 Trading assets 506,213 525,432 Financial investments 4,234,547 3,889,952 Other assets 745,754 968,191 Investments in entities accounted for using the equity method 2,285,047 1,771,475 Property and equipment and intangible assets 26,451 27,945 Total assets 25,711,641 25,404,784 Equity and liabilities 2017 2016 Deposits from other banks 7,818,593 7,628,203 Deposits from customers 7,767,789 7,618,112 Liabilities evidenced by paper 5,711,716 5,827,385 Trading liabilities 398,720 496,573 Other liabilities* 806,898 1,075,248 Provisions 136,314 129,780 Subordinated debt capital 834,162 932,776 Equity* 2,237,449 1,696,707 Attributable to equity holders of the parent* 2,237,367 1,696,683 Minorities 82 24 Total equity and liabilities 25,711,641 25,404,784 EUR thousand *The previous year was adjusted according to IAS 8. 22
RLB NÖ-Wien Group Income Statement (IFRS) Income Statement 2017 2016 Interest income* 541,193 434,714 Interest expenses -408,385-261,409 Net interest income* 132,808 173,305 Impairment charges -8,851 17,823 Net interest income after impairment charges* 123,957 191,128 Fee and commission income 76,655 77,401 Fee and commission expenses -22,257-25,116 Net fee and commission income 54,398 52,285 Net trading income 12,763-2,009 Profit from financial investments 9,066 16,691 Profit from investments in entities accounted for using the equity method 545,251-98,692 General administrative expenses -221,841-206,024 Other operating profit/loss 15,876-13,833 Profit/loss before tax* 539,470-60,454 Income tax 19,415-4,016 Consolidated profit/loss for the year* 558,885-64,471 EUR thousand *The previous year was adjusted according to IAS 8. 23
RLB NÖ-Wien Group Key Data (IFRS) Regulatory information* ) 2017 2016 Total basis of assessment (total risk) 12,936 13,275 Total own funds 3,149 2,706 Surplus own funds ratio 204.3% 154.8% Common equity Tier1 ratio 19.1% 14.2% Total own funds ratio 24.4% 20.4% EUR million or as otherwise specified *) according to CRR (RH NÖ-Wien credit institution-group) Key Risk Figures 2017 2016 Non Performing Exposure (NPE)-Quote 1.3% 1.6% Non Performing Loans (NPL)-Quote 2.8% 3.7% Coverage Ratio I 49.0% 48.6% Coverage Ratio II 83.2% 78.6% Additional information 2017 2016 Employees 1,202 1,176 Branches and offices 31 41 Performance 2017 2016 Return on equity before tax 27.4% -3.5% Cost/Income Ratio 47.7% 64.3% 24
E-Mail: ir@raiffeisenbank.at Tel.: +43 51700-93960 www.raiffeisenbank.at/investorrelations 25