Deutsche Pfandbriefbank : 01.04.2023 - Company Presentation

pbb Deutsche Pfandbriefbank Annual Results 2022 Company Presentation

April 2023

pbb Deutsche Pfandbriefbank AG, April 2023 (IFRS, pbb Group, audited)

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Disclaimer

• This presentation is not an offer or invitation to subscribe for or purchase any securities in any jurisdiction, including any jurisdiction of the United States. Securities may not be offered or sold in the United States absent registration or pursuant to an available exemption from registration under the U.S. Securities Act. Deutsche Pfandbriefbank AG (pbb) does not intend to conduct a public offering of securities in the United States.
• No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial condition of pbb and its direct and indirect subsidiaries and their securities. Nothing in this presentation shall form the basis of any contract or commitment whatsoever.
• This presentation may only be made available, distributed or passed on to persons in the United Kingdom in circumstances in which section 21(1) of the Financial Services and Markets Act 2000 does not apply.
• This presentation may only be made available, distributed or passed on to persons in Australia who qualify as 'wholesale clients' as defined in section 761G of the Australian Corporations Act.
• This presentation is furnished to you solely for your information. You may not reproduce it or redistribute to any other person.
• This presentation contains forward-looking statements based on calculations, estimates and assumptions made by the company's top management and external advisors and are believed warranted. These statements may be identified by such words as 'may', 'plans', 'expects', 'believes' and similar expressions, or by their context and are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. Such factors include general economic conditions, the conditions of the financial markets in Germany, in Europe, in the United States and elsewhere, the performance of pbb's core markets and changes in laws and regulations. No obligation is assumed to update any forward-looking statements.
• By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the noted limitations.

pbb Deutsche Pfandbriefbank AG, April 2023 (IFRS, pbb Group, audited)

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Agenda

1. pbb at a glance

2. Operative highlights

3. Financial highlights

4. ESG

5. Strategic outlook

6. Summary

7. Appendix

pbb Deutsche Pfandbriefbank AG, April 2023 (IFRS, pbb Group, audited)

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Business Model & Strategy

Dividend title with an attractive shareholder return and clear focus on Green transformation of the CRE sector

Core Business

Funding

• Strong capital market presence: benchmark issuances and private placements
• • Resilient Pfandbrief as main funding source complemented by unsecured bonds
  • pbb one of most active senior unsecured Green Bond issuers
  • EUR and foreign currencies
• Scalable retail deposit online-platform (pbb direkt)
• Call and term deposits (EUR, USD)

	CRE Lending
Specialized on-balance sheet	- Pfandbrief-eligiblesenior loans,
lending …	complemented by limited non-senior loans
	- Structuring expertise for complex/large
	transactions
	- ~ 150 deals per year
… based on stable, well	- Ø deal size ~€ 50-70 mn
diversified funding base	- Green Loans integral part of business
	model: CRE transformation partner

USP

• Leading specialized CRE bank with conservative lending standards and high-risk competence
• Strong franchise with long- standing client relationships
• Local presence in core Europe and the US
• Resilient Pfandbrief
  as main funding source - in addition, scalable retail deposit platform

New Business Lines

RE Invest. Mgmt.

• Issuance of open-endedreal estate funds
• Capital-efficientand scalable income source

Partners

pbb Debt

• Provide required formats to institutional investors (e.g. debt funds)
• Leverage our extensive market access

Green Consulting

• Advise on holistic solutions within the green transformation of RE (e.g. green development loans, green capex facilities)

Strategy Update

• Maintain a conservative risk profile and retain strict cost discipline
• Increase of profitability by growth and capital light strategic initiatives
• Sustainable finance as an important contributor for all growth initiatives

pbb Deutsche Pfandbriefbank AG, April 2023 (IFRS, pbb Group, audited)

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Operating and financial overview

New business

€ bn (commitments, incl. extensions > 1 yr.)

9.19.0

7.4

Net interest and commission income 1

€ bn (IFRS)

482

502

497

General and admin. expenses

• mn (IFRS)

42%	40%	46%
		CIR4
204	219	224

2020

2021

2022

2020

2021

2022

20202021

2022

Portfolio

€ bn (financing volumes)

74%75%

77% Share

of strategic portfolio

Net income from risk provisioning

• mn (IFRS)

Pre-tax profit1

• mn (IFRS)

7.5%

4.6%

6.3%

RoE b.t.1,5

44.2	43.7
11.4	10.9
	5.8			5.2
27.0	27.6

43.7

9.9

4.5

Strategic

29.3 portfolio

1

-70

-57

-126

1

-35

-47

-81

-5-39

-44

242

151

213

2020

2021

2022

VP PIF REF

2020

Stage 1&22

2021

Stage 3 Other3

2022

2020

2021

2022

Note: Figures may not add up due to rounding 1. 2020 figures retrospectively adjusted according to IAS 8.42 2. Incl. provisions in off balance sheet lending business 3. Recoveries from written-off financial assets 4. CIR = (GAE + net income from write-downs and write-ups on non-financial assets)/operating income	5. After AT1
coupon (2020: -€17M ; 2021: -€17M; 9M/22: pro-rata-€3M)
Annual Results 2022 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 09 March 2023
pbb Deutsche Pfandbriefbank AG, April 2023 (IFRS, pbb Group, audited)	5 5