1Investor-Update.

apoBank – The Leading Bank in

the German Healthcare Market.

June 2019

2Investor-Update.

Bus iness mode l and s t ra tegy.

Bus iness pe r formance.

R isk management , c red i t qua l i t y, f und ing .

1

3

4

The changing hea l thcare marke t .2

Agenda.

3Investor-Update.

apoBank – At a glance.

Close to our customers.Our 2,523 employees at 85 locations cater to the

needs of our customers.

85

Our mission

We promote our members, in particular professionals

in the healthcare sector, and their organisations as

well as corporations active in the healthcare sector.

Largest cooperative bank.

We are member of the National Association of

Germen cooperative Banks (BVR) and part of the

BVR deposit insurance system.

A captivating idea.458,770 customers, of which are 113,455

members of the bank, are convinced of our

mission.

Market leader

We are market leader In payments services and

lending business, our market share in start-up

financing reaches 60 percent

Rating of

apoBank:

AA-S&P

Tier 1

ratio:

16.7 %

Total

assets:

45.4 bn Euro

New lending

business:

7.1bn Euro

Net prof it

after tax:

62.9mn Euro

April 2019

4Investor-Update.

Leading bank in German healthcare market.

Client base.

Corporate clients

Professional associations &

clearing centres

Institutional

investors

Retail clients

Self-employed &

employed healthcare

professionals

Students of

medical professions

Promotion

of healthPrevention Diagnosis Curation

Reha-

bilitationNursing

Patient

5Investor-Update.

Strategy: Focussing on market opportunities.

New line „apoPrivat“ for investment

advisory

Increase in securit ies deposit volume

„3 in 3“

Increasing product range

Lead manager corporate

f inance / advisory

Tailor made services for

medical centres

Expansion of start-up f inancings

Development of consulting

Co-operations / new concepts

Implementation of

competence centre

for Digital Health

Expansion of consulting

Development of new consulting

services

FACILITATING

HEALT

SURGERY/

PHARMACY

APOHE@LTH

CORPORATES

BUSINESS

INSTITUTIONAL

INVESTORS

MEDICAL

CENTRES

6Investor-Update.

Bus iness mode l and s t ra tegy.

Bus iness pe r formance .

R isk management , c red i t qua l i t y, f und ing .

1

3

4

The changing hea l thcare marke t .2

Agenda.

7Investor-Update.

Driving forces in the healthcare market.E

co

no

mic

s

Demographic development

He

alth

ca

rep

olitic

s

Outpatient care Inpatient care Healthcare

industry

Digitalisation

8Investor-Update.

The healthcare sector is changing.

digitalisation

employment

co-operation

industrialisation

healthcare across

sectors

internationalisation capitalisation

9Investor-Update.

Larger units with increasing importance.

1,654

68,830

18,826

51,831

19,043

60,441

18,608

2015

8,326

69,860

15,362

61,515

70,916

2010 2012 2016

52,167

2017

19,877

67,022

69,498

49,208

20,044

69,844

65,039

50,479

2,490

11,060

1,938

51,679

13,826

2,156

17,063

2,821

62,527

Doctors in medical centresDoctors in single surgeries

Number of single surgeries

Doctors in professional associations

Number of professional associations Number of medical centres

∆

2010/

2017

-3%

-10%

+6%

-7%

+105%

+71%

10Investor-Update.

Framework conditions of the industrialisation process.

Driving factors

Change in values:

Young healthcare professionals increasingly

attach importance to work-life-balance and are

less adverse to jobs in larger medical care

centres

Demographics :

Senior surgery owners are increasingly

confronted with problems of finding successors;

offers to take over their surgery seats are

interesting

Legislation :

Healthcare legislation facilitates to implement

medical centres covering similar specialists,

serving as door opener in particular for dental

medical services

Patient demands :

Larger medical units offer transparent services,

longer opening hours and modern

equipment/facilities

11Investor-Update.

Industrialisation/capitalisation: The investors’ view.

Investors are looking for new

investment opportunities…

The fragmented healthcare market

in Germany is prone to active

consolidation.

Current focus is on

outpatient care.

Capital and technology intensive

disciplines offer huge industrialising

potential.

They are looking for stable,

cycle independent market

segments.!

1 2

34

5 6

…discovering healthcare as a global

growth market.

12Investor-Update.

Digitalisation changes structures in the healthcare market.

Today: The patient‘s first contact is the doctor.

550 mn outpatient

treatments19.5 mn inpatient

treatments

pharmaceutical

expenditure: 33 bn €

13Investor-Update.

Digitalisation changes structures in the healthcare market.

Tomorrow: Online first.

150 mn digital

treatments = 38,000

doctors

435 mn outpatient

treatments

pharmaceutical

expenditure 33 bn €

14Investor-Update.

Bus iness mode l and s t ra tegy.

Bus iness pe r formance.

R isk management , c red i t qua l i t y, f und ing .

1

3

4

The changing hea l thcare marke t .2

Agenda.

15Investor-Update.

Stable revenue basis.

Risk provisioning with reserve

character, in mn Euro

Operating expenditures,

in mn EuroOperating revenues,

in mn Euro

136112

95 10388

20162014 2015 2017 2018

890 854 810 817 869

20152014 2016 2017 2018

553 550 561 594 635

2014 2015 2016 2017 2018

59

39

-6 -12

32

2014 2015 2016 2017 2018

55 59 61 62 63

2014 20162015 2017 2018

Risk provisioning from the

operating business, in mn Euro

Net prof it after tax,

in mn Euro

2016 and 2017 net re lease

134153 160

133113

2016 201820172014 2015

Operating result,

in mn Euro

Risk provisioning with reserve character diminishes net profit,

but serves for taxed capital accumulation

16Investor-Update.

Sustainable growth strategy in the customer business.

Lending volumes,

in bn EuroNew lending business,

in bn Euro

6.45.2

6.3 6.8 7.1

2014 2015 2016 2017 2018

6.8 6.97.2

8.0

2015

7.8

2014 2016 2017 2018

Volume securit ies accounts,

private clients, in bn Euro

32.9

11.5

6.1

1.6

5.1

2017

6.3

2.1

5.1

6.2

12.7

2014

3.8

2018

2.6

4.9

14.1

7.1

3.1

4.8

6.6

15.6

4.7

17.3

24.326.1

27.9

30.1

2015 2016

Investment and private loans

Corporate clients

Real-estate loans

Start-up loans

17Investor-Update.

Bus iness mode l and s t ra tegy,

Bus iness pe r formance.

R isk management , c red i t qua l i t y, f und ing .

1

3

4

The changing hea l thcare marke t .2

Agenda.

18Investor-Update.

Very good portfolio quality.

Mapping o f in terna l apoBank rat ing c lasses (BVR-Mas terska la ) to externa l ra t ing c lasses

based on under ly ing defau l t p robabi l i t ies , drawdowns (c la ims to cus tomers , gross , secur i t ies ,

o f f -ba lance sheet i tems)

47.2%

29.0%16.0%

6.4%

1.4%Retail clients

30.7 bn Euro

17.7%

1.9%0.9%

79.4%

Not rated

Financial instruments

6.2 bn Euro

Professional assoc.,

large corporates

4.9 bn Euro

10.5%

25.5%0.4%

12.0%

51.5%

A

AAA-AA

BB-C

BBB

Steady portfolio growth, focus on retail clients as well as

professional associations and large corporates

Volume of financial instruments stable on low level

92% of retail exposure and 89% of exposure to professional

associations and large corporates are investment-grade rated

At 1.3% NPL-Ratio is at low level (2017: 1.5%)

Forbearance Ratio: 1.3%

Coverage Ratio: 38.4%

D

19Investor-Update.

Good regulatory capital position.

22.0%18.3%

25.0%

20.2%

26.1%

2014

26.1%

2015

22.6%

2016

21.8%

19.5%

2017

16.7%

2018

Regulatory capital ratiosRegulatory capital, in mn Euro

Equity ratio Common equity tier 1 ratio

839 936

450 383 324 275 233

1,092 1,154

1,100

1,051

2014

1,017

2,465

2015 2017

1,124

2016

1,129

1,181

2018

2,340 2,4112,528 2,543

Supplementary capital Members’ capital contributions

Reserves, other Total capital

2018 2019

CET1 Equity ratio CET1 Equity ratio

Overall capital

requirement7.38% 10.88% 8.26% 11.76%

Anticycl. buffer* 0 0.01%

Capital conser-

vation buffer1.875% 2.5%

Total SREP

capital requirem.5.5% 9.0% 5.75% 9.25%

P2R 1.0% 1.25%

P1R 4.5% 8.0% 4.5% 8.0%

Capital ratios will be dampened in future due to

further business expansion as well as Basle IV related

increase in RWA

Continued capital increase via further allocation to

reserves

Leverage ratio: 4.8% (31.12.2017: 5.2%)

Liquidity coverage ratio: 144% (31.12.2017: 132%)

Net stable funding ratio: 111% (31.12.2017: 108%)

* The national anticyclical capital buffer as been activated by the regulator as of 1 July 2019 and has

been set at 0.25%. German banks have to comply within the next 12 months. Based on data as of

31.12.2018 apoBank‘s anticyclical capital buffer raises from 0.01% to 0.23%. apoBank will meet the

new requirements without difficulties.

20Investor-Update.

Credit risks predominant.

20172014 20162015 2018

9.4 9.2 9.511.6

13.9

Risk weighted assets, in bn Euro

7,630

3,008

1,192

820

910

303 Retail

Other incl. states

Cororates

Institutions

Participations

Op Risk / CVA

Distribution of RWA, in bn Euro

Continued business growth, in particular in retail

and in corporate sector

Market risks in banking book only

21Investor-Update.

Diversified funding.

Commercial paper

Promissory notes

Registered bonds

Registered covered bonds

Benchmark bonds

Debt Issuance Programme (DIP):

apoObligationen (retail)

Bearer bonds

Covered bonds

Fixed coupon

ascending / descending

Variable coupon

with collar

callable

single right to cancel

multiple rights to cancel

Congruent funding of lending business

Expansion of product range provides

funding flexibility

Growing investor base

Perception in the capital markets as

reliable and regular issuer

Increasing share of covered bonds

FEATURESPRODUCTSTARGETS

> 300 institutional client

> 200 investors from the Geno-

Finanzgruppe

> 50 Partner banks

Funding of promotional loans via

KfW-Group and regional

promotional banks

> 458,000 retail clients,

associations and large corporates

Stable base of less volatile and

steadily growing deposits from

customers

PARTNER BANKSINVESTORSCUSTOMERS

22Investor-Update.

Part of a strong cooperative group.

BVR Institutssicherung GmbH guarantees in

accordance to EU-regulation deposits in a

volume of up to 100,000 Euro per head/client

A voluntary additional guarantee mechanism by

the BVR-Sicherungseinrichtung safeguards the

existence of member institutes (Institutsschutz)

that enter financial distress

The Institutsschutz covers:

all deposits and

Bearer bonds held by customers.

Fur ther in format ion:

www.bvr .de/SE

www.bvr - ins t i t u tss icherung .de

23Investor-Update.

Excellent ratings.

S&P Fitch Ratings (Group-rating)

Counterparty credit rating AA- Issuer default rating long-term AA-

Short-term debt A-1+ Issuer default rating short-term F1+

Covered bonds rating AAA Outlook Stable

Senior unsecured (preferred) AA-

Senior Subordinated (non preferred) A+

Outlook Stable

24Investor-Update.

Stable funding sources.

40,000

0

10,000

20,000

30,000

201720152014 2016 2018

in mn Euro

Senior unsecured

Demand deposits

Term and savings deposits incl.

subordinated property receipts

apoObligations (retail)

Covered bonds

Profit participation rights and

subordinated capital,

excl. property receiptsefe)

Public funding facilities

2014 2015 2016 2017 2018

1,247 1,632 3,190 3,674 5,125 Covered bonds

3,455 3,555 4,522 5,315 6,218 Cover assets*

1,992 1,872 1,214 1,641 1,093 Excess cover

* inc l . s t ipu la ted l iqu id excess cover

25Investor-Update.

Increased capital markets funding.

Constant share in capital markets funding to total

funding from 22% (end of 2018) to 21% (end of

2022)0.2

2019

0.3

9.9

0.5

0.2

2018

0.5

0.5

7.2

0.5

2020 2021 2022

9.7

10.1

11.211.7

0.6

6.1

0,7

3.6

5.1

3.2

3.5

3.2

5.7

0.33.2

7.5

Capital markets, long-term, secured

Capital markets, unsecured, long-termECB tender

Capital markets short-term

in bn Euro

26Investor-Update.

Highly granular cover pool.

Focus on high quality, residential

mortgages

Very granular cover pool, only domestic

exposure

Non-performing loans (debt in arrears,

cancelled, impaired) and customers, which

do not meet the required rating, are not

included in the cover pool according to

internal rules and are automatically

excluded from the cover pool in agreement

with the trustee

Internal apoBank rules regarding the

matching cover are stricter than the

requirements by law

Voluntary public commitment for an

extended collateralisation for mortgage

Pfandbriefe

Cover pool, in mn Euro

608

567

326

300k - 1 mn Euro

up to 300k Euro

1 mn Euro - 10 mn Euro

> 10 mn Euro

Total

4,453

5,952

5.3156.218

31.12.2017 31.12.2018

527

5,952Total

2,707

Apartments

Single/two family houses

Other, commercial

Multi family houses

1,413

1,305

Incl. 175 mil l ion Euro (2017);

265 mil l ion Euro (12/2018)

st ipulated l iquid excess cover

Cover pool by size

Cover pool by type

27Investor-Update.

High quality cover pool.

415

5 1570

560 545623

359267 304 290

627 648 613685

5 < 10 Y12 < 18 M< 6 M 4 < 5 Y3 < 4 Y6 < 12 M 2 < 3 Y18 M < 2 Y > 10 Y

1,836

2,425

1,057

Outstanding covered bonds

Cover pool

§ 28 PfandBG3 1 . 1 2 .

2 0 1 8

3 1 . 1 2 .

2 0 1 7

Seasoning 4.6 years 4.6 years

Average weighted

loan-to-value55.3% 55.4%

S&P analysis

(AAA rating)

Available over-

collateralisation17.21% 40.19%

Overcoll. consistent with

current (AAA) rating5.39% 5.07%

Unused notches 5 5

Maturity structure and f ixed-interest period,

in mn Euro, 31.12.2018 (§28 PfandBG)

28Investor-Update.

Covered bonds (Pfandbriefe).

0

200

400

600

800

1000

1200

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2029

Pfandbriefe LCR 1B Pfandbriefe LCR 2A Pfandbriefe Private Placements (non LCR)

Maturity profile, in mn Euro (30.04.2019)

29Investor-Update.

Contact.

ALEXANDER VAN ECHELPOEL RAINER VOGEL BARBARA ZIERFUß

Head of Treasury Trading Desk Investor Relations

+49 211 5998 9750 +49 211 5998 8914 +49 211 5998 4687

alexander.vanechelpoel@apobank.de rainer.vogel@apobank.de barbara.zierfuss@apobank.de

30Investor-Update.

Annex.

31Investor-Update.

Development of P&L.

Risk provis ioning f rom the operat ing

business, in mn Euro

Net commission income, in mn EuroNet interest income, in mn Euro

-5.7 -12.1

59.2

2014

39.2

20172015 2016 2018

31.9

698.3

2014 20172015

675.2

20182016

625.6 606.2 632.4

2014 20162015

139.0

2017 2018

123.5 133.0156.3 164.9

337.0

201820162014

249.2

2015 2017

304.8223.7 233.6

20182014 2015

95.3

2016

112.2135.9

2017

103.0 88.3

Operat ing prof i t before r isk provis ions,

in mn EuroRisk provis ioning with reserve

character, in mn Euro

20152014 2016

496.0

2017

530.1516.4

2018

478.6

597.6

Admin. expenses, in mn Euro

Taxes, in mn Euro

70.9

201720152014

98.6

20182016

94.379.3

50.4

201820172014 2015 2016

141.8 153.4 159.6132.8 113.4

61.0 62.9

2014 2015 2016

54.5

2017 2018

59.1 61.9

Operat ing result , in mn Euro Net prof i t af ter tax, in mn Euro

2016 / 2017 net reversal

Note: in 2014 8 mn Euro

extraordinary expenses

32Investor-Update.

Continuously growing customer business.

Members (in thsd)Customers (in thsd)Total assets, in bn Euro

382 397 416 436459

2014 2015 2016 20182017

106 108 110 111 113

20152014 20182016 2017

38.6

2014

35.1

20162015 2017 2018

36.441.4

45.4

33Investor-Update.

Customer loans and deposits dominate balance sheet.

211 211 222 222 233740 531 450 403 4120

5.000

30.000

35.000

5,7145,6814,520

5,568

2016

29,492

2014 2015 2017 2018

1,609

6,0585,533

2,131

27,037 27,893

34,652

32,013

2,381 3,017

Bank balances Securities OtherLoans to customers Fixed assets and participations

2018

1,769 1,783

23,588

1,8101,799 1,257

2014

1,296

2015

8,033

2016

1,124 1,144

8,105

26,037

4,202

1,165

27,448

1,291

7,214

21,737

2,9342,294

2017

2,739

6,930

25,797

5,876

8,950

Liabilities to banks Liabilities to customers OtherSecuritised liabilities Balance sheet equity

Assets, in mn Euro

Liabi l i t ies , in mn Euro

34Investor-Update.

Disclaimer

This document is for information purposes only. The

information contained in this presentation has been

thoroughly researched by Deutsche Apotheker- und

Ärztebank using exclusively sources that are considered

reliable. Nevertheless, Deutsche Apotheker- und

Ärztebank provides no assurance or guarantee that this

information is up-to-date, accurate or complete, accepts

no liabil ity for any damage or loss caused by or related

to the use of this information, and points out that this

information may be subject to change.

The estimates and evaluations ref lect the opinion of the

author at the time of preparation, and may be outdated

or have changed in another way as a result of later

developments.

The circumstances presented are for il lustration

purposes only and do not necessarily correspond to the

actual facts. Any statements on future profit or loss are

forecasts or model calculations. The actual market

development and the resulting profit or loss may differ.

This presentation is not a suitable substitute for an

individual consultation by a lawyer, auditor or tax adviser

that may be necessary in the light of the circumstances

of the individual case.

This draft may be neither reproduced nor passed on to

third part ies without the consent of Deutsche Apotheker-

und Ärztebank. Deutsche Apotheker- und Ärztebank

assumes no liabil ity for direct or indirect damage arising

from or related to the distribution and/or use of this

document.