BayernLB – Factbook

Munich, August 2021

2

Contents › History, management

and owners 3

› Business model 9

› Business areas 13

› Our subsidiaries 18

› Ratings 23

History, management and owners

3

The Bank’s history dates back to 1884

4

1884

1914

1917

1925

1929

On 1 July 1884, the

newly founded

Bayerische

Landeskulturrentenanstal

t opens for business. This

marks the start of a long

corporate history

Several Bavarian savings

banks join together to

form a clearing

association

In Nuremberg, an

independent office for

the

central clearing unit is

founded

Organisational

segregation takes place

between the Girozentrale

and the savings bank

association

Bayerische

Landesbausparkasse

is founded

The

Landeskulturrentenanstalt

is renamed Bayerische

Landesbodenkreditanstalt

On 1 July 1972,

Bayerische

Gemeindebank merges

with Bayerische

Landesbodenkreditanst

alt

to become Bayerische

Landesbank

Girozentrale

1949

1972

5

Management

Stephan Winkelmeier

CEO

Dr Markus Wiegelmann

Member of the Board of

Management

Marcus Kramer

Member of the Board of

Management

Gero Bergmann

Member of the Board of

Management

Johannes Anschott

Member of the Board of

Management

6

Strong owners

BAYERNLB HOLDING AG

~ 25% ~ 75%

Free State of Bavaria

Institution established under public law

100% state guarantee

from the Free State of

Bavaria

Association of Bavarian Savings Banks

100%

A body established under public law

which is a legally dependent part of

BayernLB

100 %

7

Free State of Bavaria compares well to its European neighbours

Sources: BayernLB Research, Eurostat, German federal and state statistics offices, Datastream

2019 gross domestic product by country

EUR bn

AAATop ratings

The Free State of Bavaria has the

highest ratings of AAA/Aaa

from Standard & Poor’s and Moody’s.

EUR 633 bnGross domestic product

Bavaria accounted for 18.4% of

Germany's nominal gross domestic

product in 2019.

DAX 30Bavaria – a state with a strong economy

Around 25% of all DAX 30 corporations

are in Bavaria. Bayern has one of the

strongest economies of all the German

states and is home to a large number of

Mittelstand companies.

3.436

2.523

2.419

1.788

1.245

812633 628

529 475 473 399 359 347 311 240 212 188

Bavaria

8

Savings banks – major customers and sales partners

Savings banks are the top financial

services providers throughout Bavaria

› 64 savings banks

› EUR 240.1 bn in total assets

› EUR 150.5 bn credit volume

› EUR 187.6 bn in customer deposits

› 35,813 employees and trainees

› 2,626 branches (incl. self service)

› 14.4 m savings, current and securities

accounts

As at: 31 December 2020

9

Business model

1. As a streamlined, specialised bank we are the reliable innovation

partner for companies in high-growth business sectors of the

future, primarily in Bavaria and Germany, and support our

corporate customers sustainably and for the long term with in-depth

expertise

2. In real estate financing, we use our specialist knowledge and

network to support our customers throughout the entire value chain

in Germany and other selected markets

3. We are the central bank for the Bavarian savings banks and the

main bank for the Free State of Bavaria

4. As a tech bank, DKB provides its customers with an excellent client

experience and outstanding digital solutions

5. Our asset management companies Real I.S. and BayernInvest

enable our customers to choose from a wide variety of sustainable

investments

Our value proposition as the BayernLB bank of the future:

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Inspire customers as a tech bank

and sustainable partner

(“Geldverbesserer” slogan, or “your

money can do more”)

DKB

› Significant customer growth from

4.6 m to 8 m customers planned

› Tech bank of tomorrow: digital

companion for retail customers

› Regionally rooted partner to local

authorities and companies in selected

growth industries

› Sector-specific solutions for

payments, investment products, and

investment and company-oriented

lending

› Strong partner for sustainability

issues

Our structure: three strong segments

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Specialised lender for the German

economy’s challenges of tomorrow

Corporates & Markets

› Leading sector expertise in five

innovative sectors of the future: energy,

mobility, technology, manufacturing &

engineering, and construction & basic

resources

› Deep integration and strong roots in the

ecosystems of the focus sectors

› Extensive product expertise from the

traditional lending business to tailored

structured and asset-based finance

› In addition to bond issues, a high level of

expertise in capital market transactions,

in particular a leading position in

Schuldscheins and Pfandbriefs

› Well-developed ESG advisory based on a

holistic consulting approach

› Concentration on selected treasury

products

Qualified and reliable real estate lender and

service provider/central bank to the

Bavarian savings banks and partner to the

public sector/FI

Real Estate & Savings Banks/FI

› Expert financing of future-oriented and

sustainable products in the various real estate

asset classes

› Support for professional customers in established

markets in the German core business and in

selected foreign regions

› Positioning of Real I.S. as a key real estate fund

manager

› BayernLabo: subsidised housing and municipal

lending for Bavaria

› Savings banks as major customers and strategic

sales partners

› Close cooperation in the subsidised loan

business and leading position in foreign notes,

coins and precious metals

› Comprehensive support for the public sector and

financial institutions

› Asset management via BayernInvest

Support for your international activities thanks to around

950 correspondent banks in 100 countries

We are there for youat home in Bavaria and abroad

Representative

office

Moscow

German Centres

Shanghai

Taicang

Germany

Munich

Nuremberg

Stuttgart

Frankfurt

Dusseldorf

Hamburg

Berlin

Leipzig

Foreign

branches:

London

Milan

Paris

New York

12

Munich head office

13

Business areas

14

Corporates - investment lender with in-depth expertise in future-oriented sectors

Firmly anchored in Germany’s future-oriented sectors

Energy – the Bank has successfully supported the energy transition for

many years and has exceptional expertise in key technologies for

producing renewable energy

Mobility – a leading position in rail, successful in logistics, automotive and

aviation with asset know-how and expertise along the value chains

Technology – long-standing customer relationships with top innovation

and technology companies in Germany and abroad

Manufacturing & engineering – broad customer base ranging from family-

run Mittelstand companies to global international corporations

Construction & basic resources – strong network of prestigious market

participants and leading research and educational institutions

› As one of the leading banks in Germany, we focus on long-term partnerships, offering

sustainable financial solutions

› We support our customers with our consulting and product expertise, especially for

structured and asset-based finance

› Our consulting and product expertise is bundled inside our sector teams which serve

our clients using a holistic approach

› This structure guarantees short decision channels, flexibility, optimum solutions and

added value for our customers

› Four “Deal of the Year” awards in 2019, three of which for ESG bonds

› Top rankings in corporate Schuldschein and Pfandbrief league tables

› Close interplay between the capital markets and project financings

› Focused range of money market, interest rate and currency products/services

Markets – streamlined capital market business for our customers

Debt Capital Markets

As a leading arranger BayernLB structures bonds according to the needs of

the issuer and investor. BayernLB enjoys excellent rankings in corporate

Schuldschein and Pfandbrief league tables.

Access to a broad and diversified investor pool – and to the savings bank

network – coupled with secondary market expertise is the key to our success.

Structured customer solutions with added value

We support financing and provide structuring, securitisation and placement

solutions in the capital market.

Central bank function for savings banks

The BayernLB Group offers a focused range of products in its role as central

bank to the Bavarian savings banks.

Money market-/interest rate and currency products

Money market and repo transactions, along with interest rate and currency

products, top off our services for BayernLB customer groups.

We are real estate. With our specialist knowledge we guide our customers in

established asset classes throughout the entire value chain.

16

Real estate - 360° real estate expertise

› Approx. EUR 4.9 bn in new business in addition to

approx. EUR 2.4 bn in renewals concluded in 2020

› In Germany we have a presence at four locations in

addition to Munich - Berlin, Düsseldorf, Frankfurt und

Hamburg. Our foreign branches are located in London,

Paris, Milan and New York.

› We have an extensive real estate network. We work

closely with our subsidiaries Real I.S., DKB, BayernFM,

BayernImmo, LBImmoWert and BayernGrund to offer our

customers our full 360° real estate expertise.

16

Savings Banks & Financial Institutions –well connected in the Savings Banks Finance Group

Central bank and no. 1

partner to the Bavarian

savings banks

Top provider of foreign

notes & coins and

precious metals in the

Savings Banks Finance

Group

Exclusive service provider

for the Bavarian savings

banks in subsidised loans

Powerful partner

to the public sector

17

› We assist the savings banks with know-how and innovative power, offering them an

extensive range of products and services that meets the needs of their proprietary and

customer business

› As a strong partner to public-sector and municipal customers and public institutions,

BayernLB offers a wide range of products with tailor-made solutions for their financing and

investment plans

› Broad network of correspondent banks to support savings banks and corporate customers

Global support for insurers,

banks and institutional

customers

18

Our subsidiaries

19

DKB –retail pillar of the BayernLB Group

DKB – Das kann Bank

Our products and services lead the market and are renowned

for their fair prices.

We aim to provide an intelligent banking experience based on

innovative technology. Our retail customers carry out their

daily banking transactions conveniently and securely online.

Our business customers are served personally on location by

our sector experts.

› Approx. 4.6 m retail customers

› Germany’s second largest online bank

› The most sustainable of Germany’s top 20 banks (e.g. social

bond for retail customers, benchmark for green bonds,

sustainability funds and the crowd investing platform DKB-

Crowd)

› In business with corporate clients, the focus is on sectors of

the future with long-term growth potential in Germany

› Financing partner for more than 4,000 municipalities,

administrative districts and municipal associations

DKB Group

IFRS financial statements31 Dec 2020

Total assets EUR 109.8 bn

Equity EUR 3.7 bn

Liabilities to customers EUR 72.4 bn

Net interest income EUR 954.0 m

Profit/loss before taxes EUR 249.9 m

RoE 7.7 %

Convenient and secure –

DKB’s internet banking

DKB business customers –

personal service

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BayernLabo –development bank of the BayernLB Group

Subsidised housing and municipal lending for Bavaria

BayernLabo has the legal mandate to promote social housing

and municipal construction in Bavaria. In addition, BayernLabo

issues government and municipal loans in Bavaria.

› The Free State of Bavaria is liable for all the liabilities assumed

by BayernLabo

› BayernLabo has a Aaa rating from Moody’s

› Solva 0 status

› LCR status level 1

› No bail-in risk

31 Dec 2020

Total assets EUR 17.8 bn

Own funds EUR 2.8 bn

CIR 63 %

Employees 239 FTE

AaaBayernLabo’s rating

from Moody’s

BayernLabo –

a sustainably good company

21

BayernInvest –the German ESG specialist

Investment management

› Special and retail funds: bonds, equities and multi-asset

mandates, index-based investments

› Implementation of sustainability criteria

› Systematic risk management and quality control

› Strong in-house research

www.bayerninvest.de

We make sustainability profitable.

And profitability sustainable.

› ESG specialist with 30 years of expertise

› Positioned among the top 10 in Germany

for years

› 360 degree full-service provider

› Around 200 employees with offices

in Munich and Luxembourg

Master-KVG

› Analysis of investment forms, Master-KVG structuring,

fund administration

› Individual solutions for the entire back and mid office area

with implementation of regulatory requirements

Services

› Excellent customer service

› Extensive and professional reporting

› Focus: innovative and automated ESG reporting

› Strategic asset allocation (SAA)

Alternative investments

› BayernInvest Luxembourg centre of competence as a

specialist for alternative investments

› Opening and structuring funds, transaction management,

Master-KVG/AIFM service

Assets under management

(EUR m)31 Jan 2021

Special funds 92,974

Retail funds 1,660

Asset management 5,845

Total 100,479

22

Real I.S. – real estate investments and asset management worldwide

Leading the market in real estate investments,

Scope Management rating AA+ very high quality

Real I.S. Group is one of the leading German providers of

real estate investments for institutional and private

investors. It manages assets worth around EUR 11 bn in

ten countries around the world and has offices at six

locations in Europe and Australia.

Investments are currently focused on Germany, the

Netherlands, Spain, France and Australia.

For more information see www.realisag.de.

31 Dec 2020

Assets under management Approx. EUR 11 bn

Managed real estate Approx. EUR 10.3 bn

Equity raised Approx. EUR 666 m

Transactions (buying and selling) Approx. EUR 1.58 bn

Occupancy rate 96.3%

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Ratings

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Ratings

Fitch Ratings Moody's

Issuer rating A- (stable) Aa3 (stable)

Long-term, preferred senior unsecured A Aa3 (stable)

Long-term, non-preferred senior unsecured A- A2

Short term, unsecured F1 P-1

Public Pfandbriefs AAA Aaa

Mortgage Pfandbriefs – Aaa

Long-term, Derivative Counterparty/Counterparty Risk Assessment (CRA) A (dcr) Aa3 (cr)

Long-term, Counterparty Risk Rating (CRR) – Aa3

Short-term, Counterparty Risk Assessment (CRA)/Counterparty Risk Rating (CRR) – P-1 (cr)/ P-1

Long-term, deposits A Aa3 (stable)

Short-term, deposits F1 P-1

Profit participation rights – Baa3

Subordinated bonds BB+ Baa2

Viability Rating/Baseline Credit Assessment bbb baa2

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BayernLB shows above average ESG ratings

ISS ESG VigeoEiris Sustainalytics MSCI

Rating C+ 54 24,9 A

Ranking / Investment

Status„Prime“ 14 of 97 95 of 417 Industry Average

Industry Average D - - A

Rating Scale

(best to worst)A+ to D- 100 to 0 0 to 100 AAA to CCC

Benchmark276 „Public & Regional

Banks “

97 „Retail & Specialized

Banks“

417 „Diversified

Banks“

Universe: MSCI

ACWI Index

constituents,

Banks, n=192

Datum 12 / 2020 04 / 2021 07 / 2021 05 / 2021

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Contact

Volker Karioth

Senior manager

volker.karioth@bayernlb.de

+49 89 2171 23441

Disclaimer

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This publication constitutes a non-binding statement on the market situation and the investment instruments cited herein, and

applies to the time of release August 2021. This research is, to the best of our knowledge, based partly on generally accessible

sources which are, to the best of our knowledge, reliable and accurate. However, no liability can be accepted for any errors or

inaccuracies in information derived from these sources. The information used for this publication has not been checked for

accuracy, completeness or topicality. Consequently, no guarantee can be made for the completeness and accuracy of this report.

This publication constitutes marketing communication and is for information only. It is not intended as a substitute for individual

professional advice on investments and assets. For further information and updates, please feel free to contact us.

FactbookRating & Investor Relations28