LOCAL EXPERTISE MEETS GLOBAL EXCELLENCE Cheuvreux German Corporate Conference Frankfurt, 2 th January 21
Business segments of Aareal Bank Major activities Aareal Bank The international property specialist Structured Property Financing Consulting / Services to the institutional housing sector International presence in 16 European countries, the US, China and Singapore International real estate financing in more than 25 countries Additional industry experts in hotel, shopping centre and logistics Typical deal size: > 25 mn Total back book under management: ~ 24 bn Marketleading European ITsystems for the management of residential and commercial property Marketleading integrated payment transaction systems Key market: Germany > 2,2 Customers ~ 7 mn units under management (in Germany) 1
Structured Property Financing
The Aareal Bank Network in 16 European countries, the US, China and Singapore International Property Financing in more than 25 countries 3
The specialist for specialists Typical deal size: > 25 mn Typical products, for example: single asset investment finance portfolio finance (local or crossboarder) construction finance International presence in 16 European countries, the US, China and Singapore Additional industry experts in hotel, shopping centre and logistics Indepth knowhow in local markets and special properties International experience with employees from 31 nations Network of regional market experts and sector specialists 4
Consulting / Services
Services provided to the institutional housing sector Strategic Management of residential portfolios Planning, Controlling, Steering Portfolio Management Our Customers: The Institutional Housing Industry Administrative Management of residential portfolios Tenant Management Flat Management Maintenance Market leading ITsystem house for the institutional housing sector Highly automated ERP systems (e.g.: Blue Eagle based on SAP, GES, Wodis Sigma) for the management of property portfolios Comprehensive range of integrated Services and Consulting ~75 8% customer overlap: substantial crossselling effects with highly integrated IT solutions Repair Refurbishments New Developments Construction Management of residential portfolios Mass payments Cash Management Creditor and Debtor Management Financial Management of residential portfolios Marketleading integrated payment transaction systems House bank for the institutional housing sector Integrated mass payment transaction systems Accounts of the integrated payment transaction system 6
Group funding position
Asset / Liability structure according to IFRS As at 3.9.29: 4.6 bn bn 45 4 35 3 25 2 15 1.8 Interbank 13.1 Treasury portfolio 22.3 Real estate structured finance loan book 3.6 Interbank 9. Customer deposits 24.7 Longterm funds 1 5 3.4 Noninterestbearing assets Assets 3.3 Nonint.bearing liabilities & shareholders equity Liabilities 8
Refinancing situation: Flexible use of unsecured and secured funding mn 3. 2.5 2. 1.5 Refinancing situation 9M 29: Covered bonds: 2,2 bn Senior unsecured: 2, bn SoFFinBond,8 bn Senior unsecured 1. 5 25 26 27 28 9M 29 Senior unsecured Mortgage covered bonds 9
SoFFin measures
SoFFin support measures: Key terms Silent participation Volume: 525 mn in one tranche Coupon: 9% (tax deductible) Term: perpetual Redemption: at nominal value Fully recognised as Tier 1 capital Call rights: by Aareal Bank only, acc. to para. 1,4,3 German Banking Law No dividend payments during 29 and 21 for preceding years Additional remuneration: coupon increases on a pro rata basis by.5 pp for each.25 DpS Subordination in case of liquidation and insolvency: junior to existing and future Tier 2 instruments (incl. Genussrechte / scheine) and other debt; pari passu with existing tier 1 hybrids and future tier 1 hybrid offerings; senior to shareholders Loss sharing: pari passu with all other instruments with loss participation; no dividend payment until full compensation of shared losses Government guarantee facility Volume: 4 bn Term: 36 months Guaranteed obligations: bearer bonds Drawdown period: until 31.12.21 Commitment fee: 1 bp (for undrawn guarantee) Drawdown fee: 12 months: 5 bp p.a. > 12 months: 94.8 bp p.a. 11
As a fundamentally sound bank, consequences from SoFFin measures are manageable 1) Aareal Bank profile unchanged Interest payments manageable Conditions market standard Exit determined by Aareal Bank Aareal Bank s business model will remain unchanged No state influence on current business model and corporate governance Fundamentally sound bank; no request for restructuring plan expected Holding remains anchor investor and retains its current shares Voting agreement in order to maintain Aareal Holding s blocking minority to be concluded Interest payments on silent participation are economically reasonable Economic costs roughly equal the dividend payments 27 Flexible funding at attractive costs compared to senior unsecured Aareal Bank has agreed to pay no dividend during 29 and 21 Cash compensation for management board is capped in 29 and 21 No further conditions exceeding German Financial Market Stabilisation Act Aareal Bank committed to repaying silent participation midterm, given sound capitalisation Aareal Bank can determine the date of repayment (BaFin approval required) Aareal Bank has a variety of options to repay the silent participation 1) Subject to standard EU Commission proceedings 12
Tier 1 Ratio increased to 1.7% (CRSA) 25 2 15 1 5 mn Core Tier 1 Tier 1 ratio¹ = 8.% Hybrid Tier 1 Hybrid ratio Total Tier 1 Tier 1 capital (CRSA / German GAAP) after SoFFin measure Tier 1 ratio¹ = 8.% 1,857 1,863 3.9.28 31.12.28 Silent Silent participation participation by SoFFin by SoFFin 3.9.29 1,923 47 2% 2,393 525 Composition of Tier 1 capital 31.12.28 1,393 47 25% 1,863 Tier 1 ratio¹ = 1.7% 2,393 3.9.29 3.9.28 1,387 47 25% 1,857 5 4 3 2 1 Leverage ratio 2) Total assets/equity including Tier 1 hybrids Total assets/equity excluding Tier 1 hybrids 2.5 3.7 24.8 34.7 17.9 22.6 3.9.8 31.12.28 3.9.29 incl.soffin Tier 1 ratio of 1.7% (CRSA) puts Aareal in a solid position in relation to peers and market requirements Already a very low balance sheet leverage compared to peers no need for future adjustments 1) Excluding market risk 2) Gross IFRS numbers (particularly no netting of derivatives) 13
Q3 29 at a glance
Q3 29 results at a glance: Positive results since 27 Euro mn Operating profit ( mn) Q3 29 25 Q2 29 25 Q1 29 17 Q4 28 11 Q3 28 31 Comments Positive results continue in 29 despite challenging environment and conservative positioning Coupon payment on silent participation SoFFin 12 12 SoFFin costs are manageable for the business model of Aareal Bank Consolidated retained profit ( mn) 1) RoE after taxes (%) 6 4.3 2) 7 4.8 2) 7 1.7 4 1.3 15 4.5 Profitable despite challenging economic and financial environment Tier 1 ratio (%) (according to German Banking Act CRSA) 1.7 3) 1.4 3) 1.2 3) 8. 8. Capitalisation remains solid 15 1) After deduction of coupon payment on SoFFin participation 2) Before appropriation of profits 3) Post SoFFin capital measure in 29
Structured property financing: Still profitable in challenging environment P&L SPF Segment Euro mn Net interest income (NII) Provision for loan losses (LLP) NII after LLP Net commission income Net result on hedge accounting Net trading result Results from nontrading assets Res. at equity acc. Companies Results investment properties Admin expenses Others Operating profit Income taxes Segment result Segment result attributed to minority interests Silent participation by SoFFin Consolidated retained profit Q3 9 Q2 9 Q1 9 Q4 8 Q3 8 98 36 62 3 4 19 3 1 49 4 19 1 18 4 12 2 11 42 59 3 9 1 5 2 18 2 2 4 12 4 12 37 65 5 1 16 17 48 6 16 6 1 4 6 117 2 97 13 3 23 59 4 1 46 18 1 1 4 3 99 2 79 7 1 25 37 5 5 2 8 12 4 8 SoFFin burdens segment result in Q2 and Q3 24 mn SoFFin coupon shown as appropriation of profits ( 12 mn per quarter) 11 mn guarantee fees in commission income ( 6 mn / 5 mn) Strong liquidity position is reflecting in net interest income Loan loss provision varies quarter by quarter but guidance confirmed 16
Structured property financing: Reliable Partner for our existing clients New business by region 9M 29 Europe East North America Europe North Europe South 11% 9% 2% 5% 1% Asia / Pacific 54% Europe West Unchanged focus on portfolio monitoring and active management New business Focussing on renewals with existing clients Preferably loans eligible for Pfandbrief cover pool 5, 4, 3, 2, 1,, New business origination mn 4,983 52 % 4,579 2,48 2,37,44,371 9M 28 9M 29 German International 17
Consulting / Services: Interest rate environment burdens segment results P&L C/S Segment (industry format) Euro mn Sales revenue Own work capital Changes in inventory Other operating income Cost of material purchased Staff expenses Excl. oneoffs D, A, impairment losses Results at equity acc. investm. Other operating expenses Results from interest and similar Result from ordinary activities Income taxes Segment result Q3 9 Q2 9 Q1 9 Q4 8 Q3 8 5 3 6 25 25 4 12 6 2 4 52 1 2 6 27 27 3 12 7 3 4 51 1 7 3 24 3 11 1 1 63 1 3 1 27 27 4 15 11 4 7 54 3 8 24 24 3 11 11 3 8 ITBusiness (Aareon) Stable development Fewer SAPbased implementations than originally planned Deposit taking business (Aareal Bank) Historical low interest environment still burdens margins of deposit taking business while expenses stay stable Segment result attributed to minority interests 1 1 Consolidated retained profit 4 3 1 7 7 18
Consulting / Services: Stable segment results confirming outlook mn 6 5 4 3 2 1 Clean EBT Consulting / Services Aareon 29 8 3 26 27 28 29p Consulting / Services Increase of sales revenues expected for Q4 due to new product line Confirming outlook of clean operating EBT (~ 25 3 mn) for 29 1) 44 25 3 1) subject to the assumption that interest rates will not approach a zero interest level Long term contracts generate stable revenues (> 85 % of total revenues) SAPbased product lines suffers from reduced implementation projects as anticipated New product line Wodis Sigma successfully introduced in Q2, several contracts are already being negotiated in Q3 6 mn oneoffs for Staff adjustment after finalisation of SAPbased Blue Eagle and Discontinuation of noncore activities Aareal Bank 29 Aareal sustains it's position as the house bank of the German housing sector Interest rate environment still impacts net interest income (NII) Stable deposits around 4 bn 19
Asset quality
Total property finance portfolio: High diversification and sound asset quality by region 1) by property type 1) North America Europe North 13% 12% 5% Asia/Pacific 2% Europe West (ex Ger) Other / Mixed Logistics 9% 14% Residential 6% 33% Office Europe East Europe South 13% 18% 19% Germany Hotel 17% 21% Shopping Centre by product type 1) by LTV ranges 2) Developments 12% 4% Other 68% > 8% 13% 6% 84% Investment finance 81% < 6% 21 1) Total volume outstanding of 22.9 bn as at 3.9.29 2) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages; values as at 3.9.29
Development property finance portfolio: Diversification continuously strengthened 1% 9% 8% 7% 6% 5% 4% 55 1.528 294 581 1.33 3.53 2.578 2.727 1.847 2.979 4.99 2.87 4.125 15.383 Asia North America Europe East Europe North Europe South 3% 15.47 4.839 Europe West 2% 1% 4.315 Germany % 1998 23 29 22
Total property finance portfolio: Economic downturn expected to impact NPLlevel LLP and NPL development Euro mn NPL Exposure 1) Specific Allowances 1) Portfolio Allowances General General LLP Portfolio LLP As at 31.12.28 452 176 51 34 Utilisation 9M 68 2) 53 2) Addition 9M 35 115 As at 3.9.29 Coverage ratio specific allowances 689 3) 34.4 % 237 51 237 51 As at 3.9.29 Coverage ratio incl. General LLP 689 41.8 % 288 23 1) Incl. property finance portfolio still on DEPFA s balance sheet 2) of which: 45 mn drawdows on legacy NPLs and direct writedowns on successfully restructured cases. Coverage on other cases: ~35% (23:8) 3) Successfully restructured cases unconsidered
Current development and outlook
Outlook Group Net interest income Net loan loss provisions Net trading result / results from nontrading assets Revaluation reserve Admin expenses Structured Property Financing New business Consulting / Services Clean operating profit From today s perspective the expected NII will be 455 mn Euro at the lower of the communicated target range. LLP is expected to be 15 mn (or around 65bp on our property financing portfolio) and therefore at the upper end of the target range. Loan loss provisions for unexpected loss due to extraordinary accumulation of defaults cannot be ruled out in 29. Unpredictable in current markets / depending on future developments. Future market developments still unpredictable, improved in 9. Under control around 36 mn from a yearly perspective, incl. Aareon oneoffs. ~ 3 bn with focus on client base / renewals. Target range of 25 3 mn, depending on interest rate developments. 25 1) This corresponds to the original guidance of 42 44 mn after taking into account that the interest payments for the silent participation of SoFFin are not shown in net interest income but as appropriation of profits
Appendix Group figures Q3 29 Asset quality
Aareal Bank Group Key figures Q3 29 P&L Aareal Bank Group Net interest income Net loan loss provisions Net interest income after net loan loss provisions Net commission income Net result on hedge accounting Net trading result Results from nontrading assets Results from companies accounted for at equity Results investment properties Administrative expenses Others Operating profit Income taxes Consolidated net income Quarter 3 29 Euro mn 111 36 75 28 4 19 3 1 88 3 25 3 22 Quarter 3 28 Euro mn 117 2 97 34 1 25 37 84 5 31 11 2 Change % 5.1 8. 22.7 17.6 24. 4.8 19.4 72.7 1. Consolidated net result attributed to minorities Silent participation by SoFFin Consolidated retained profit 4 12 6 5 15 2. 6. 27
Aareal Bank Group: Segment Reporting Key figures Q3 29 by operating units Structured Property Financing Q3 29 Q3 28 Consulting / Services Q3 29 Q3 28 Consolidation/ Reconciliation/ Other Euro mn Net interest income 98 99 13 18 111 117 Allowance for credit losses 36 2 36 2 Net interest income after allowance for credit losses 62 79 13 18 75 97 Net commission income 3 7 44 46 13 19 28 34 Net result on hedge accounting 4 1 4 1 Net trading income / expenses 19 25 19 25 Results from nontrading assets 3 37 3 37 Results from companies accounted for at equity Results from investment properties 1 1 Administrative expenses 49 5 39 35 1 88 84 Net other operating income / expenses 4 5 1 3 5 Impairment of goodwill Operating profit 19 2 6 11 25 31 Income taxes 1 8 2 3 3 11 Net income / loss 18 12 4 8 22 2 Allocation of results Net income / loss attributable to noncontrolling interests 4 4 1 4 5 Net income / loss attributable to shareholders of Aareal Bank AG 14 8 4 7 18 15 Q3 29 Q3 28 Aareal Bank Group Q3 29 Q3 28 28
Aareal Bank Group Key figures 9M 29 P&L Aareal Bank Group Net interest income Net loan loss provisions Net interest income after net loan loss provisions Net commission income Net result on hedge accounting Net trading result Results from nontrading assets Results from companies accounted for at equity Results investment properties Administrative expenses Others Operating profit Income taxes Consolidated net income 1.1. 3.9.29 Euro mn 339 115 224 94 3 44 19 1 266 8 67 1 57 1.1. 3.9.28 Euro mn 338 6 278 12 3 36 3 261 17 16 36 7 Change %.3 91.7 19.4 7.8 1. 1. 1.9 147.1 37. 72.2 18.6 Consolidated net result attributed to minorities Silent participation by SoFFin Consolidated retained profit 13 24 2 14 56 64.3 29
Aareal Bank Group: Segment Reporting Key figures 9M 29 by operating units Structured Property Financing 3.9. 29 3.9. 28 Consulting / Services 3.9. 29 3.9. 28 Consolidation/ Reconciliation/ Other Euro mn Net interest income 31 286 38 52 339 338 Allowance for credit losses 115 6 115 6 Net interest income after allowance for credit losses 186 226 38 52 224 278 Net commission income 1 16 134 14 39 54 94 12 Net result on hedge accounting 3 3 3 3 Net trading income / expenses 44 44 Results from nontrading assets 19 36 19 36 Results from companies accounted for at equity 3 3 Results from investment properties 1 1 Administrative expenses 147 154 121 11 2 3 266 261 Net other operating income / expenses 8 15 1 3 1 1 8 17 Impairment of goodwill Operating profit 53 73 14 33 67 16 Income taxes 5 26 5 1 1 36 Net income / loss 48 47 9 23 57 7 Allocation of results Net income / loss attributable to noncontrolling interests 12 12 1 2 13 14 Net income / loss attributable to shareholders of Aareal Bank AG 36 35 8 21 44 56 3.9. 29 3.9. 28 Aareal Bank Group 3.9. 29 3.9. 28 3
Net interest income: Reflecting conservative liquidity, capitalisation position mn 14 12 1 8 6 4 2 134 117 114 114 111 117 99 12 11 98 18 17 12 13 13 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 NII Structured Property Financing NII Consulting/Services Q3 net interest income influenced by Results of higher margins in the RSFbusiness are negatively effected by a high liquidity position due to intensive funding activities in 29 Consulting / Services: Historical low interest rate level still burdens the deposit taking business Q3 SoFFin burden of 5 mn guarantee fees in commission income 12 mn SoFFin coupon shown as appropriation of profits 31
Loan loss provisions: Reflecting difficult economic environment mn 5 4 3 2 1 42 37 36 2 2 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 Loan loss provisions stays in given range for 29 although they vary quarter by quarter 36 mn in Q3 still reflecting the close monitoring and management of our loan portfolio 34 mn General Portfolio LLP from 28 for challenging environment is still untouched LLP is expected to be 15 mn (or around 65bp on our property financing portfolio) in 29 at the upper end of the target range 32
Net commission income: Burden by SoFFin guarantee mn 5 4 Q2 and Q3 results are additionally burdened by the cost of the SoFFin guarantee facility of 6 mn and 5 mn 3 2 1 34 48 36 3 28 Considering these facts 94 mn including (or 15 mn without) costs of the SoFFin guarantee facility in 9M 29 (9M 28: 12 mn) is a good performance regarding the challenging environment Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 33
Net trading income Q3 29: Reflecting volatile derivative markets mn 25 2 1 CDS Portfolio: Single Name EU Government Risk, all investment grade 15 1 18 19 5 CDS Others Total 34
Admin expenses: Strict cost discipline maintained mn 1 8 6 4 84 86 9 88 88 Measures to raise efficiency still paying off and keeping the admin expenses continuously stable 9Mfigures with 266 mn slightly above 28level, (9M 28: 261 mn) although included oneoffs due to adaptations within Aareon structures ( 6 mn) 2 Q3 28 Q4 28 Q1 29 Q2 29 Q3 29 35
Revaluation reserve: Change mainly driven by asset spreads mn 1 5 6 56 86 7 5 16 9 115 1 184 15 2 3.9. 22 23 24 25 26 27 28 29 9M 29 36
From asset to risk weighted asset (RWA): Essential factors affecting volume of RWA Effective date 3/9/29 RWA Aareal Group 1) 22.3 bn + RWA RE Structured Finance 17.7 bn RWA Others 4.6 bn RWA Loans outstanding 17. bn x Loans outstanding 2.4 bn Multiplier.831 + Undrawn loans RWA 1.5 bn Undrawn volume x.7 bn Multiplier.468 + Corporate (noncore RE portfolio) 1.8 bn Retail.1 bn Sovereign. bn 2) Banks.7 bn x x Loans outstanding in loan currency FX Undrawn loans in loan currency FX Financial interest.3 bn Investment shares.4 bn Others (tangible assets etc.).2 bn Securitisation (ABS Investments).2 bn Operational Risk.9 bn Total loan volume drawn as per effective date Depending on: type of collateral, geographic location of mortgaged properties, arrears, type of loan Total loan volume available to be drawn as per effective date Depending on: type of collateral geographic location of mortgaged properties, arrears, type of loan 1) Excl. of market risk 2) Exposure to sovereign governments amounts to 22 mn 37
Appendix Group figures Q3 29 Asset quality
Western Europe (ex Ger) credit portfolio Total volume outstanding as at 3.9.29: 4.8 bn by product type by property type Developments Other 1% 9% Retail / Shopping Centre Other 1% 7% Logistics 16% 47% Office 9% Investment finance Hotel 2% by performance by LTV ranges 1) NPLs 2% 68% 14% 5% > 8% 98% Performing 81% < 6% 1) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages 39
German credit portfolio Total volume outstanding as at 3.9.29: 4.3 bn by product type by property type Developments 7% 2% Other Shopping Centre 6% 1% Other Hotel 8% 55% 91% Investment finance Logistics 1% 11% Office Residential by performance by LTV ranges 1) NPLs 6% 68% > 8% 13% 15% 94% Performing 72% < 6% 1) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages 4
Southern Europe credit portfolio Total volume outstanding as at 3.9.29: 4.1 bn by product type by property type Other Other Developments 22% 4% Residential portfolios Hotel 9% 9% 13% 36% Office 74% Investment finance Retail / Shopping Centre 33% NPLs by performance by LTV ranges 1) 68% > 8% 9% 4% 1% 99% Performing 87% < 6% 1) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages 41
Eastern Europe credit portfolio Total volume outstanding as at 3.9.29: 3. bn Developments by product type 1% % Other by property type Logistics Other 1% 9% 33% Office Hotel 25% 9% Investment finance 32% Retail / Shopping Centre by performance by LTV ranges 1) NPLs 68% > 8% 5% 12% 4% 95% Performing 84% < 6% 1) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages 42
Northern Europe credit portfolio Total volume outstanding as at 3.9.29: 2.9 bn by product type by property type Other Developments 12% % Residential portfolios Hotel 9% 6% 4% Other 36% Office Logistics 15% 88% Investment finance 3% Retail / Shopping Centre by performance by LTV ranges 1) NPLs 1% 68% 15% 8% > 8% 99% Performing 77% < 6% 1) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages 43
North America credit portfolio Total volume outstanding as at 3.9.29: 2.7 bn by product type by property type Other 2% Other Residential portfolios 9% 9% 33% Hotel 12% Developments 68% Investment finance Retail / Shopping Centre 23% 26% Office by performance by LTV ranges 1) NPLs 3% 68% 9% 2% > 8% 97% Performing 89% < 6% 1) Mortgage collateralised performing business only; value does not take into account any collateral other than mortgages 44
Asia credit portfolio Total volume outstanding as at 3.9.29: 1. bn by product type by property type Developments 7% Logistics Hotel 22% 3% 93% Investment / Share finance Retail / Shopping Centre 16% 59% Office by performance by LTV ranges 1) NPLs > 8% % 68% 12% 5% 1% Performing 83% < 6% 45 1) Chinese portfolio includes other collateral than mortgages. Rest of Asia: mortgage collateralised performing business only; value does not take into account any collateral other than mortgages.
Treasury portfolio 13.1 bn of high quality assets By Asset Class By Rating 1) Covered Bonds 8% USBroker 4% ABS 4% BBB 1.9% A 12.1% <BBB.3% NonUS Banks 13% Public Sector Debtors 71% AA 25.% AAA 6.7 1) Fitch Rating (or Composite if no Fitch Rating available) 46
Definitions and contacts
Definitions Property Financing Portfolio Paidout financings on balance sheet Incl. remaining property loans on DEPFA books New Business Newly acquired business incl. renewals (excl. interest rate extensions) Contract is signed by costumer Fixed loan value and margin Net RoE = Group net income after minority interests Allocated (average) equity Allocated Equity Average of: Equity (excluding minorities and revaluation surplus but including silent participation by SoFFin) start of period less dividends and Equity (excluding minorities and revaluation surplus but including silent participation by SoFFin) end of period less expected dividends CIR = Admin expenses Net income Net Income net interest income +net commission income + net result from hedge accounting + net trading income + results from nontrading assets + results from investments accounted for at equity + results from investment properties + net other operating income 48
Contacts Jürgen Junginger Managing Director Investor Relations Phone: +49 611 348 2636 juergen.junginger@aarealbank.com Alexandra Beust Director Investor Relations Phone: +49 611 348 353 alexandra.beust@aarealbank.com Sebastian Götzken Senior Manager Investor Relations Phone: +49 611 348 3337 sebastian.goetzken@aarealbank.com 49
Disclaimer 29 Aareal Bank AG. All rights reserved. This document has been prepared by Aareal Bank AG, exclusively for the purposes of a corporate presentation by Aareal Bank AG. The presentation is intended for professional and institutional customers only. It must not be modified or disclosed to third parties without the explicit permission of Aareal Bank AG. Any persons who may come into possession of this information and these documents must inform themselves of the relevant legal provisions applicable to the receipt and disclosure of such information, and must comply with such provisions. This presentation may not be distributed in or into any jurisdiction where such distribution would be restricted by law. This presentation is provided for general information purposes only. It does not constitute an offer to enter into a contract on the provision of advisory services or an offer to purchase securities. Aareal Bank AG has merely compiled the information on which this document is based from sources considered to be reliable without, however, having verified it. Therefore, Aareal Bank AG does not give any warranty, and makes no representation as to the completeness or correctness of any information or opinion contained herein. Aareal Bank AG accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation. This presentation may contain forwardlooking statements of future expectations and other forwardlooking statements or trend information that are based on current plans, views and/or assumptions and subject to known and unknown risks and uncertainties, most of them being difficult to predict and generally beyond Aareal Bank AG s control. This could lead to material differences between the actual future results, performance and/or events and those expressed or implied by such statements. Aareal Bank AG assumes no obligation to update any forwardlooking statement or any other information contained herein. 5
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