Aareal Bank AG

Investor Presentation • Feb 24, 2021

Analyst Conference Preliminary 2020 results February 24, 2021

Marc Hess (CFO) Thomas Ortmanns (CDO) Christof Winkelmann (CMO)

Agenda

• Business development in times of Covid-19
• Asset Quality
• Business Segment Reporting
• Capital, B/S & Funding/Liquidity
• Outlook 2021
• Aareal Next Level 360^o -review
• Key Takeaways
• Appendix

Business development in times of Covid-19

Business development in times of Covid-19

Managing Covid-19 challenges and pursue strategic initiatives consistently

Robust and resilient	▪ Well-diversified business ▪ Conservative risk profile ▪ Strong capital base ▪ Solid liquidity position
Staying on course	▪ As a reliable partner we are in close contact with our clients to find solutions and to support where necessary ▪ Comprehensive risk provisioning and value adjustments ▪ Pursue strategic initiatives consistently ▪ De-risking paid off

Worsened environment in Q4 2020

• Worsening is based on further tightened global lockdown measures
  • Hotels closed for pleasure trips across Europe, business travel very limited
  • Shopping malls are closed in most countries
  • Exit locks starting in the evening hours or throughout the whole day are in place
• The impact of Covid-19 mutations on the expected speed of GDP recovery is unknown

Worsened economic outlook but strong signals for intact swoosh recovery

▪ Comparing January 2021 vs. September 2020's GDP expectations a significant short term worsening is visible, but start of vaccination campaigns is expected to strongly support positive GDP developments by mid 2021

1 UK expectations 2021 significantly down due to Brexit and Covid-19 mutations

2 Recovery of US economic 2021 better than expected

3 EU economy 2020/2021 largely unchanged

4

After recognising extensive LLP in 2020, ARL will have scope to consistently pursue opportunities arising in a changed environment

1) Source: Oxford Economics

Apart from Covid-19 related comprehensive risk provisioning strong operating performance

	Group Financials	▪ 2020's operating profit of € -75 mn influenced by Covid-19 related comprehensive risk provisioning ▪ Capital gain of ~ € 180 mn from Aareon minority sale ▪ Based on a strong capital, funding and liquidity position a total dividend payout1) of € 1.50 per share in 2021 for the financial year 2020 intended
	Resilient Segment Performance	▪ SPF: - Strong new business with low LTVs and margins significantly above plan - Portfolio growth to upper end of guided range - NII increased throughout 2020
Aareal Bank Group		▪ C/S Bank: - As expected, housing industry deposits proven stable - NCI increased vs. 2019
		▪ Aareon: - Strong growth in digital solutions continued - NCI increased vs. 2019 - Covid-19 related burden lower than expected - Sale of minority stake in Aareon to Advent successfully closed
	Aareal Next Level	▪ Strategic review: Envisages consolidated operating profit in the range of € 300 mn, to be achieved already in 2023 – excluding any potential acquisitions, and subject to the Covid-19 crisis being fully overcome by then

1) The dividend payment of € 1.50 per share in 2021 for the financial year 2020 would need to be made in two steps. In compliance with the requirements published by the European Central Bank (ECB) on 15 December 2020, the current status of preparation of the financial statements indicates a distributable amount of € 0.40 per share. Subject to the preparation and audit of the financial statements, the Management Board plans to submit a corresponding proposal for the appropriation of profits to the ordinary Annual General Meeting in

Preliminary results 2020

Promising income development and cost control – Covid-19 related comprehensive risk provisioning

€ mn	Q4 '19	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '19	FY '20	2020-Comments
Net interest income	130	123	122	128	139	533	512	Positive development throughout 2020 driven by grown portfolio, good margins and TLTRO participation
Derecognition result	22	7	9	3	9	64	28	In expected range, 2019 with positive one-offs
Loss allowance	35	58	48	61	177	90	344	Covid-19 related comprehensive risk provisioning
Net commission income	65	57	54	57	66	229	234	Despite Covid-19 burdens above last years' level
FV- / hedge-result	-4	11	-16	-2	-19	-3	-26	Including Covid-19 related comprehensive risk provisioning
Admin expenses	118	129	109	114	117	488	469	Significantly below 2019 level despite Aareon growth due to Covid-19 related underspend
Others	2	0	-10	0	-1	3	-11	Incl. Covid-19 triggered value adjustments of own assets
Operating profit (EBT)	62	11	2	11	-99	248	-75	Promising income development and cost control - Covid-19 related comprehensive risk provisioning
Income taxes	20	4	-7	10	-13	85	-6	FY tax ratio affected by expenses non effective for tax purposes
Minorities / AT1	4	5	4	5	7	18	21
Consolidated net income allocated to ord. shareholders	38	2	5	-4	-93	145	-90
Earnings per share (€)	0.62	0.04	0.07	-0.05	-1,56	2.42	-1,50

Preliminary results 2020

NII & NCI with positive development in 2020; Admin below expectations due to Covid-19 related effects

Admin

• FY 2020 admin expenses significantly below planning due to Covid-19 effects
  • Covid-19 related underspend in 2020 (e.g. travel expenses, significantly lower variable compensation vs. 2019) - underspending effects expected not to be sustainable
  • Decreasing provisions from deferred stock based remuneration, aligning shareholder's interest and management remuneration
• Aareon with increasing admin expensed reflecting it's growth program (€ 188 mn in 2020 vs. € 173 mn in 2019)
  • ➢ Continuation expected for 2021

Asset Quality

Asset Quality

Overall LTV development better than anticipated in Q3

1) Performing CREF-portfolio only (exposure)

• Overall average LTV increase to 60% in Q4 2020 (vs. 57% in Q3) less pronounced than expected; however, few but significant outliers
• The scope of current independent value appraisals within the Covid-19 affected portfolio (Hotel, Retail, Student Housing) covers this portfolio by targeted ~85%
• Fat tail: Generally, all loans with LtV >100% now classified as stage 3. Additionally, stage 3 LLP was recognised for existing NPLs along with external appraisal values
• Liquidity demand remains moderate (Q2 2020: € 160 mn, Q3 2020: € 27 mn, Q4 2020: € 79 mn) – infected volume virtually stable in Q4 at € ~7 bn
  • Based on the extended and further tightened global lockdown measures, we have generally classified all loans for which liquidity support measures (payment deferrals and liquidity facilities) were classified as stage 2 (with 80% related to hotels) – thus recognising forward looking loss allowance for increased default risks, but which have not materialised
  • Stage 2 LLP up by net € 65 mn (Q4: € 31 mn) excl. outflow from stage migration e.g. from stage 2 to 3

Loss allowance (LLP) / Others

Covid-19 related comprehensive risk provisioning

Covid-19 related P/L effects with respect to asset valuation

• Q4 stage 3 LLP: € 168 mn (incl. € 15 mn FVPL)
  • € 110 mn apply to retail NPLs in UK, thereof € 70 mn to three new retail NPLs
    • − Classification as NPL was triggered by value decrease showing in new appraisals
  • € 58 mn apply to other NPLs representing a challenging Q4 (avg. Q4 LLP 2012-2019: € ~40 mn)
• Overall, having recognised forward-looking additional loss allowance to a significant extent, the Bank is therefore comprehensively taking account of the December/January intensification of the pandemic

Asset Quality

UK Shopping Centres particularly hit by worse than expected UK macro development

• Acceleration of structural change in UK retail sector particularly impacting Shopping Centres
• Significant value deterioration in particular certain shopping centres
• UK retail Portfolio total of 14 loans comprising
  • ❑ 6 loans (~30 retail parks) proven to be more resilient
  • ❑ 8 shopping centres loans
    • − Volume-weighted decline of values > 40% vs. 12/18 (of which > 30%-points in 2020)
    • − 2 malls (€ ~110 mn) performing with a current LTVs of max. 70%
    • − 6 malls (€ ~440 mn) in NPL (stage 3 / FVPL), coverage ratio ex FVPL ~45%

Defaulted exposure

NPL portfolio burdened by Covid-19 linked economic downturn

Asset Quality Update Real Estate Environment

• Our clients continue to support their assets
• Real Estate remains one of the most thought after asset classes to invest in
• Asia Pacific is recuperating well and is approaching pre-Covid-19 levels
• Recovery in the US is gaining momentum
• Europe/UK still affected by further lock-downs and heterogeneous approaches to the pandemic
• Vaccination numbers are increasing steadily across the globe, though some countries are more efficient than others
• Still no significant NPL or Forced-Sales Volumes
• Construction activities below historical average
• Interest rates remain low for the short to medium term

Asset Quality Update Retail Portfolio

1) Performing CREF-portfolio only (exposure)

Asset Quality Update Retail Environment

• Aareal revalued 94% of its entire retail portfolio in 2020, thereof nearly 100% of the Covid-19 affected engagements
• First investors started to look at transactions with signs of liquidity coming back
• To remember: Brick&Mortar are the backbone of an omni-channel system
• On-line retail likely to somewhat reduce, once physical stores open again
• EU savings per end 2020 reported to be € 600 bn and UK £ 125 bn higher than pre-Covid-19 levels
• Brexit in place
• Only 4% of all CVA's in the UK to-date actually resulted in insolvency, indicating a higher than expected retailer recovery in the UK going forward

Asset Quality: Hotel Portfolio

Hotel portfolio well positioned to master Covid-19 crisis

• Total portfolio revaluation close to 93%, thereof 100% of (Covid-19) affected portfolio
• Overall LTV increase in the portfolio to 62% is lower than the range of 66-69% expected in Q3
• Of the top 15 loans (all > € 150 mn) only 5 received liquidity lines
• In 2020, only 34% of the total portfolio got liquidity lines for a total amount of € 129 mn (Q4: € 5.3 mn) and amortisation postponements of € 55 mn (Q4: € 6.5 mn)
• Additional NPL volume of € 145 mn with LtV <100% and therefore very low LLP needs demonstrates solid portfolio quality
• Stage 2 provisioning undertaken, reflecting corona measures affected portfolio (liquidity, waivers, etc., ~80% of total stage 2 provisions).

1) Performing CREF-portfolio only (exposure)

Asset Quality

Recovery of the international hotel market already started

Full year TRI by region range from 18% to 44%

Occupancy actuals, open hotels & total room inventory (TRI), FY 2020

Breaking even

Occupancy levels required to achieve break-even by asset type

Maldives demand market rebounding strongly

17 Note: All 2020 figures preliminary and unaudited

Asset Quality Hotels, what to expect going forward?

• Trading performance expected to recover, as evidenced by countries that have largely reduced their Covid-19 related measures
• Larger conventions are starting to induce booking pace
• Hotels are benefitting of markedly reduced base- and volume costs of doing business
• Little transaction volume is causing bid and ask pricing to narrow, putting upward pressure on asset pricing
• After amortising existing relationships during Covid-19 restrictions, people will need to meet people again to renew and establish new relationships
• Tourism already expected to be strong towards summer, evidenced by solid booking performances with increased overall prices in anticipation of travel restrictions easing

Asset Quality: Looking ahead

Where do we go from here?

Transparency

• Retail overall with manageable risk and provisioning done, where appropriate. UK is one exception, not the rule
• Hotel portfolio in line with expectations and marketable recovery expected going forward
• Office portfolio without meaningful risk increase and performing well
• Logistics most sought after asset class with good performance and a stellar development expected

Therefore, and as detailed within our 360⁰ -review

• We will continue to support our clients with their existing engagements
• We see good opportunities with attractive risk/return profiles to expand and support our client relationships by using our differentiating USPs
• We will be able to grow our market share and interest income, laying the foundation for the future

Business Segment Reporting

Segment: Structure Property Financing

New business with low LTVs and margins significantly above plan

Segment: Consulting/Services Bank

Housing industry deposits stress resilient, NCI further increased

€ mn	FY '19	FY '20
Net interest income	-15	39
Net commission income	23	26
Admin expenses	73	68
Net other operating income	0	0
Operating profit	-65	-3

• Stable deposit volume on a high level
• Deposit taking business not affected by spread widening in senior lending
• Overall deposit structure further improved, rental guarantee deposits grown above € 2 bn
• NII significantly improved despite Covid-19 mainly due to adjusted modelling and transfer pricing, reflecting value of housing industry deposits as stable funding source
• Due to higher short term interest rates and Covid-19 related underspend segment operating profit better than revised guidance of ~ € -10 mn (original guidance ~ € -20 mn)
• Unlocking further business opportunities successfully initiated, e.g. joint-venture with ista ("objego")
• Additionally, launch of several new digital products:
  • Aareal Meter
  • Aareal Aval
  • Aareal Exchange and Payment Platform
  • Aareal Connected Payments

Segment: Aareon

Growth proposition confirmed despite Covid 19 Adj. EBITDA better than expected

P&L Aareon segment - Industry format1) € mn	FY'19	FY'20	∆ FY '20/'19
Sales revenue ▪ Thereof ERP ▪ Thereof Digital	252 201 51	258 197 61	2% -2% 19%
Costs2) ▪ Thereof material	-191 -44	-205 -45	7% 3%
EBITDA	61	53	-13%
New products / Inorganic3)	-2	-8	>100%
One offs	0	-1	>100%
Adj. EBITDA	64	62	-3%
EBITDA	61	53	-13%
D&A / Financial result	-24	-26	8%
EBT / Operating profit	37	27	-27%

• Total sales revenue increased by 2% yoy, mainly driven by growth in Digital and challenges in providing Consulting services due to Covid-19 (-6% yoy)
• Digital grew by 19% yoy, based on higher penetration with existing digital products incl. CalCon
• ERP decreased by 2% yoy (ERP growth ex_Consulting +3% yoy because of strong-year end race, e.g. Wodis Yuneo, in licence revenues)
• Consulting utilisation rate: ~63% (py benchmark: 70%) still relatively high thanks to green (digitalised) consulting facilitated during lock-down and well-received by clients
• Steadfast on investments supporting Aareon's growth strategy in line with back-end loaded industry characteristic – driven by increasing FTEs and additional investments
• Adj. EBITDA FY20 was higher than expected and kept virtually stable: the negative impact of Covid-19 amounted to € -7 mn (expectation: € -10 mn)
• Due to recent lock-down decisions, Aareon expects Covid-19 business impediments in 2021 as well, yet less pronounced than in 2020

• The recurring revenue share of 67% (last year 64%) is at high level and has steadily been growing throughout the quarters

• 1) Calculation refers to unrounded numbers

• 2) Incl. capitalised software and other income

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3) New Products consist of e.g. Virtual Assistant, Aareon Smart Platform, etc., Inorganic bundles Venture (e.g. Ophigo) and M&A activities, include investments in new product developments

Note: All 2020 figures preliminary and unaudited

Capital, B/S & Funding/Liquidity

Capital Solid capital ratios

• Capital ratios in Q4/20 decreased as anticipated due to RWA increase
• RWA increase in Q4/20 (B3 and B4) reflecting strong portfolio growth by € 1.1 bn and full recognition of Covid-19 effects
• CET1 in Q4 virtually stable (€ 2.3 bn). Capital gain (€ ~180 mn) from sale of Aareon minority share considered. Intended dividend payout of a total of € 1.50 per share in 2021 for 2020 already deducted2)
• B4 CET1 ratio (fully phased) 12/20: 13.1% (09/20: 13.9%)1)
• Significant CET1, AT1 and T2 buffers; optimisation potential in review; permission to redeem € 300 mn Tier 2 Notes received by ECB: positive effect on future funding costs
• T1-Leverage ratio at 5.9% despite TLTRO participation

• Remaining regulatory uncertainties (models, ICAAP, ILAAP, B4 etc.)

• 1) Underlying B4 RWA estimate based on the final Basel Committee framework dated 7 December 2017, calculation subject to outstanding EU implementation as well as the implementation of further regulatory requirements

• 2) The dividend payment of € 1.50 per share in 2021 for the financial year 2020 would need to be made in two steps. In compliance with the requirements published by the European Central Bank (ECB) on 15 December 2020, the current status of preparation of the financial statements indicates a distributable amount of € 0.40 per share. Subject to the preparation and audit of the financial statements, the Management Board plans to submit a corresponding proposal for the appropriation of profits to the ordinary Annual General Meeting in

May 2021. Depending on the economic developments, the regulatory requirements, the capital position and the risk situation of the bank, an extraordinary Annual General Meeting, which could possibly take place in the fourth quarter, could then decide on the intended remaining payout of € 1.10 per share.

Note: All 2020 figures preliminary and unaudited

B/S structure according to IFRS

As at 31.12.2020: € 45.5 bn (31.12.2019: € 41.1 bn)

• Well balanced B/S structure
• Increase of total assets (yoy) due to participation in ECB's TLTRO (> € 4 bn) in money market positions reflected
• More efficient use of housing deposits

1) Other assets includes € 0.3 bn private client portfolio and WIB's € 0.3 bn public sector loans

Funding / Liquidity

Diversified funding sources and distribution channels

• Sustainable and strong housing industry deposit base being part of well diversified funding mix
• Several successful capital market transactions
  • More than 50 senior unsecured private placements with a volume of > € 1bn
  • € 500 mn senior preferred benchmark (6.5Y, MS +95bps)
  • € 500 mn Pfandbrief benchmark (6Y, MS+1bp)
  • January 2021: First Pfandbrief Benchmark in 2021 (€ 500 mn) very successfully placed (7Y, MS+1bp)
  • February 2021:

\$ 750 mn Pfandbrief Benchmark with a 4 years maturity supported the strong focus of diversifying the international investor bases (more than 70% was placed outside Germany)

• Liquidity ratios significantly over fulfilled:
  • NSFR > 100%
  • LCR >> 100%

Outlook 2021

Outlook 2021

Leaving firmly behind pandemic 2020 – looking ahead with confidence

	METRIC	2020	OUTLOOK 20211)
p u o Gr	▪ Net interest income ▪ Net commission income ▪ LLP ▪ Admin expenses	€ 512 mn € 234 mn € 344 mn € 469 mn	€ 550 - 580 mn € 250 - 270 mn € 125 - 200 mn € 520 - 540 mn
	▪ Operating profit ▪ Earnings per share (EPS)	€ -75 mn € -1.50	€ 100 - 175 mn € 0.70 - 1.50

	Aareal Next Level		METRIC	2020	OUTLOOK 20211)
s nt	"Activate"	Structured Property Financing	▪ REF Portfolio ▪ New business	€ 27.8 bn € 7.2 bn	€ ~29 bn2) € 7 bn - € 8 bn
e m g e S	"Elevate"	Banking & Digital Solutions3)	▪ Deposit volume ▪ NCI	€ 11.0 bn € 26 mn	€ ~11 bn € ~28 mn
	"Accelerate"	Aareon	▪ Revenues ▪ Adj. EBITDA	€ 258 mn € 62 mn	€ 276 mn - € 280 mn € 63 mn - € 65 mn

1) Based on "Swoosh" scenario. In the current environment, this forecast is subject to significant uncertainty, especially with regard to the assumed duration and intensity of the crisis, the pace of recovery and the associated effects on our clients, as well as prevailing unclear regulatory and accounting provisions, and the possibility that individual loan defaults cannot be reliably predicted.

2) Subject to FX development

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3) Formerly known as Consulting / Services Bank: segment has been renamed effective from Jan. 2021 Note: All 2020 figures preliminary and unaudited

Aareal Next Level – 360^o-review

Aareal enters into first stage evolution of 'Aareal Next Level'

Operating profit target of € ~300 mn to be achieved already in 20231)

January 2020	▪ We introduced our strategy 'Aareal Next Level' with three strategic pillars ACTIVATE!, ELEVATE! and ACCELERATE!
Q4 2020	▪ Management initiated a 360° review of 'Aareal Next Level' in the context of Covid-19 and its mid term structural implications supported by McKinsey ▪ Key focus of 360° review: i) create sustainable shareholder value in a new normal after Covid-19 mid-term1) and ii) resume our track record as reliable dividend payer2) with the aim of earning our CoE
Early 2021	▪ 360° review confirms 'Aareal Next Level' remaining a successful and attractive strategy even in a post Covid-19 environment. Thus, we will enter into first stage evolution of 'Aareal Next Level' 1 2 3 4 5 ▪ We identified additional levers within the 'Aareal Next Level' strategic framework to significantly improve our successful performance in the future
	already in 20233) which translates ▪ We envisage to achieve an operating profit target of € ~300 mn into a return on equity after taxes of ~8%1) on Group as well as on Bank level
	▪ Free capital retained for either M&A and/or capital management

1) 15% CET 1 reference ratio (Basel IV, phase-in, revised IRBA) exceeding the market average as a reference; excluding any potential acquisitions; subject to the Covid 19 crisis being fully overcome by then

2) Subject to ECB approval

31 Note: All 2020 figures preliminary and unaudited 3) Excluding any potential acquisitions, and subject to the Covid-19 crisis being fully overcome by then

'Aareal Next Level' strategy confirmed as successful and attractive

Operating profit target of € ~300 mn to be achieved already in 20231)

Strategy and business model confirmed, being successful in a normalised environment post Covid-19

First evolution of 'Aareal Next Level' enables utilising market opportunities in Covid-19 environment and increase efficiency in organisation, of processes and infrastructure

Operating profit target of € ~300 mn to be achieved already in 20231) translating into a RoE after taxes of ~8%2) on Group and Bank level

Transformation, innovation and investment budgets

• Aareal Bank: i) transformation budget of € 10 mn fully financed by related positive one-offs and ii) innovation budget for growth initiatives of on avg. € ~2 mn p.a. (2021 - 2023) to boost NCI in Banking & Digital Solutions3)

• Additional investment budget4) for Aareon with growth costs in context of VCP implementation (2021: € ~8 mn) leading to a temporary dilution of EBT

• 3) Formerly known as Consulting / Services Bank: has been renamed effective from Jan. 2021

• 32 Note: All 2020 figures preliminary and unaudited 4) Excluding costs for Aareon M&A and M&A financing

¹⁾ Excluding any potential acquisitions, and subject to the Covid-19 crisis being fully overcome by then

²⁾ 15% CET 1 reference ratio (Basel IV, phase-in, revised IRBA) exceeding the market average as a reference; excluding any potential acquisitions; subject to the Covid 19 crisis being fully overcome by then

ACTIVATE! Structured Property Financing

Take advantage of market opportunities, grow book and optimize funding

We continue to leverage on expanded origination, structuring and exit opportunities – "Play the Matrix" i .e. countries, property types and structures

Lever	First stage evolution of 'Aareal Next Level'	Targets
1	Continue to pursue risk-conscious and ESG conform, organic expansion of financing business based on attractive margins to increase our on-balance credit portfolio	REF portfolio: YE 21: € ~29 bn
	▪ As done in Q4, utilizing market opportunities in the Covid-19 environment with attractive risk / return profiles building on our USPs	YE 22: € ~30 bn
	▪ Increase our NII, leverage our platform and enhance profitability through RoE accretive business, syndication capability is continuously used to improve structure of new business and profitability / return
	▪ We will continue to further develop our asset light strategy
2	Optimisation of funding mix and capital structure to enhance profitability and return ▪ Review and fine-tune our liquidity and ALM strategy, but maintain prudent liquidity ratios ▪ Enhance our funding mix regarding new products e.g. establishing a CP programme and optimize funding costs, by speeding up our cover pool process ▪ Optimize our regulatory capital structure	Q1 21: Termination of T2 € 300 mn YE 22: Executed ALM / liquidity strategy

ACTIVATE! We continue to strive towards greater ESG-transparency

Preliminary data on climate performance for about 85% of our existing CREF portfolio has been collected – pursuit of further data ongoing

ELEVATE! Banking & Digital Solutions1)

Leverage on our deeply embedded customer integration and increase NCI

We continue to leverage and grow our housing and adjacent industries business through elevation and expansion of our product suite with focus on NCI based income and take opportunities in cooperation with customers and other partners

Increase our opportunities for a further expansion with a particular focus on our net commission income in our Digital Solutions business	Ø 23: Deposit volume of
▪ Sharpening our strategic profile and enhance our development capabilities	€ >11 bn
▪ Continue to leverage and grow our housing and adjacent industries business through cross selling with an increasing contribution of our innovation portfolio	Grow NCI with a CAGR of 13%
➢ grow NCI with a CAGR of 13% until 2023	until 2023
▪ On top: Innovation budget for growth initiatives of on average € ~2 mn p.a. between 2021 and 2023 together with pursuing selected M&A opportunities with the ambition to double NCI until 2025	Ambition to double NCI until 2025

We reconfirm the attractiveness of our deposit base in our Banking business which is deeply imbedded in our clients' processes

▪ Sticky deposit base at attractive terms and costs from group perspective, further upside in a rising rate environment and the opportunity of additional cross selling

1) Formerly known as Consulting / Services Bank: has been renamed effective from Jan. 2021

ACCELERATE! Aareon

VCP to increase mid-term adj. EBITDA target to € 135 mn, M&A on top

We continue to strengthen Aareon's position as the leading and independent software company for the property industry with a strong value proposition

Lever	First stage evolution of 'Aareal Next Level'	Targets
4	VCP, developed with Advent, Aareon and Aareal, to increase mid-term adj. EBITDA target from € >110 mn to € 135 mn and M&A on top	YE 23: VCP with add. positive EBT
	▪ Accelerate investment in developing new digital products and offerings to add to Aareon's growing portfolio of Digital Solutions	impact (organic) YE 25: Increase adj. EBITDA from € >110 mn to € ~135 mn; achieve Rule of 402)
	▪ Go to market excellence and accelerate "new logo" wins
	▪ Leveraging Aareon's core ERP installed base to upsell / cross sell new modules and digital solutions from Aareon's Smart World
	Additional investment budget1) ▪ for Aareon with growth costs in context of VCP implementation (2021: € ~8 mn) leading to a temporary dilution of EBT
	Implementing Aareon's strategic M&A roadmap	EBITDA from M&A on top
M&A	▪ Execution of strategic M&A roadmap and EBITDA contribution from M&A activities on top
	▪ Initially up to € 250 mn debt funding of M&A roadmap negotiated
	▪ Recent acquisition of SaaS company Arthur being the first evidence of the successful partnership with Advent
1) 2)	Excluding costs for Aareon M&A and M&A financing Rule of 40: Sum of Aareon's annual revenue growth and adj. EBITDA margin will at least reach 40%

Aareon unmatched growth opportunity

Substantial upside unlocked through a combination of RPU growth and unit expansion

• Highly integrated digital ecosystem Aareon Smart World
• End-to-end product suite and roadmaps, from ERP to Digital Solutions
• Strong pan-European M&A roll-up platform

Increase RPU – Following the US Market experience

Aareon elevated to a "Rule of 40 company"

Operational business (as presented at Investor Day)

• ERP 2025: Ambitious continuation of implementation of new ERP product generations
• Offer Digital Solutions, continued investment in developing innovative and competitive digital products
• Employee Engagement Program: Empower people for success

Well structured M&A process

• Highly attractive M&A platform, with opportunity to further scale internationally
• New M&A and PMI teams implemented
• Sharpened & expanded M&A pipeline is systematically pursued – considering mature business & high growth ventures
• Financing structure for M&A has been negotiated (€250m)

Value Creation Program

• Go-To-Market: Improve GTM excellence with focus on targeting new logos and driving up-/cross-sell. Opportunity to extend value based packages to customers while driving digitalisation of industry
• SaaS Acceleration: Drive SaaS to realise higher share of recurring revenues
• Software Implementation Efficiency: Accelerate growth from recurring software through highly efficient software implementations
• Operations Excellence: Leverage potential organisational value creation levers that could support growth
• 36One: Provide a data lake for reporting excellence. Improve back office performance and automation

Aareon further increased strong financial outlook

Despite Covid-19 pandemic KPIs remained rather solid in 2020

	2020A	Former Mid-Term	2025E
Revenue growth	2%	7-9%	10%*
% Recurring revenues of total revenue	67%	-	70%
Revenue per unit (RPU) in €	24	35-40	40
Adj. EBITDA in €m (without M&A)	62	110	135
Rule of 40	27%	-	≥40%
% R&D spend** (of software revenue)	22%	20%	20%
**short-term up to 25%			*CAGR 20/25

Organisation: Implementation of group wide efficiency measures

Maintaining strict cost discipline and implement further efficiency measures

Lever	First stage evolution of 'Aareal Next Level'
5	Objective of further efficiency measures in organisation, processes & infrastructure	YE 23:
	▪ IT Next Level: Further reduction of specific internal developments and implementation of standardized applications in our S4 Hana environment will i) further reduce complexity of	SPF CIR of <40%1)
	Aareal's IT platforms and ii) enable cloud-based business and IT operating models. Thus, leading to lower running and change costs ▪ Efficiency measures optimising marginal costs of portfolio expansion, i.e. automatisation of the credit and adjacent processes as well as reporting procedures ▪ Campus: i) recalibrate workfloor concepts to address new way of working, ii) optimise self-owned real estate incl. residential development realising a related capital gain of € ~10 mn and iii) create an attractive source of income for our CTA (pensions) ▪ Implementation of young talent programme already started in 2020; first positive effects already achieved ▪ Cost reduction through streamlining of management structure: number of members of first management level (Managing Director) to be reduced by 15 percent; Supervisory Board to consider size and composition of Executive Board	Transformation budget financed by related one off effects
	/ Income Ratio LTM2) Cost ARL SPF1) Aareon1) Continued cost discipline,
	ARL ex. Target 23 Aareon1) ARL SPF1) ex. 20 20 23 costs underlines our 49% class Cost/Income Ratio 44% <40%	additional efficiency measures and growth at low marginal compared to peers best in

1) Excluding bank levy; 2020 ARL ex Aareon incl. bank levy 54% / 2020 ARL SPF incl. bank levy 48%

2) Euro StoxxBanks plus Deutsche Pfandbriefbank as of 15.02.2021, total non-interest expense LTM divided by revenue before loan losses LTM (excluding unusual Items like goodwill impairments, restructuring costs etc.); Source: S&P Capital IQ

Note: All 2020 figures preliminary and unaudited

'Aareal Next Level': Our KPIs and targets

Operating profit target of € ~300 mn to be achieved already in 20231)

		On track to achieve 'Aareal Next Level'	Our KPIs and targets
	2020		2023	2025
Aareal Bank Group
Revenues2) ▪	€ 746 mn	Mid-single digit growth CAGR
▪ Operating profit	€ -75 mn
▪ RoE post tax Group	-3.5%
▪ Dividend policy	Announced	Unchanged, 50% base dividend plus 20-30% supplementary dividend4)
Aareal Bank
CIR SPF5) ▪	44%		<40%
Aareon
▪ Revenue	€ 258 mn	✓	10% CAGR
▪ Adj. EBITDA	€ 62 mn	✓		€ ~135 mn Achieve rule of 40
			EBITDA from M&A on top

• 1) Excluding any potential acquisitions, and subject to the Covid-19 crisis being fully overcome by then
• 2) Net interest income and net commission income

3) 15% CET 1 reference ratio (Basel IV, phase-in, revised IRBA) exceeding the market average as a reference; excluding any potential acquisitions; subject to the Covid-19 crisis being fully overcome by then

4) Subject to ECB approval

41

5) Excluding bank levy

Note: All 2020 figures preliminary and unaudited

Key Takeaways

Key takeaways

Review 2020: Pandemic-related high adverse impacts and robust operating development

• Comprehensive provisioning for all currently visible Covid-19 risks
• Growth potential exploited in all three segments and market position strengthened
• Intention to reinstate dividend payment1) of € 1.50 in two steps

Outlook 2021: Declining risk provisioning and return to profitability

• Economic growth strengthens in course of the year
• Focus on capturing growth opportunities
• Triple digit million Group operating profit expected

Strategy Update: Exploit growth opportunities and increase profitability

• Developed focused growth strategies for all three segments
• Accompanied by efficiency increase measures and optimization of capital and funding
• Targeting increase in Group operating profit to approx. € 300 mn until 2023

1) The dividend payment of € 1.50 per share in 2021 for the financial year 2020 would need to be made in two steps. In compliance with the requirements published by the European Central Bank (ECB) on 15 December 2020, the current status of preparation of the financial statements indicates a distributable amount of € 0.40 per share. Subject to the preparation and audit of the financial statements, the Management Board plans to submit a corresponding proposal for the appropriation of profits to the ordinary Annual General Meeting in May 2021. Depending on the economic developments, the regulatory requirements, the capital position and the risk situation of the bank,

an extraordinary Annual General Meeting, which could possibly take place in the fourth quarter, could then decide on the intended remaining payout of € 1.10 per share.

Group results 2020

Aareal Bank Group Results 2020

	01.01.- 31.12.2020	01.01.- 31.12.2019	Change
	€ mn	€ mn
Profit and loss account
Net interest income	512	533	-4%
Loss allowance	344	9 0	282%
Net commission income	234	229	2 %
Net derecognition gain or loss	2 8	6 4	-56%
Net gain or loss from financial instruments (fvpl)	-32	1
Net gain or loss on hedge accounting	6	-4	-250%
Net gain or loss from investments accounted for using the equity method	1	1	0 %
Administrative expenses	469	488	-4%
Net other operating income / expenses	-11	2
Operating Profit	-75	248	-130%
Income taxes	-6	8 5	-107%
Consolidated net income	-69	163	-142%
Consolidated net income attributable to non-controlling interests	5	2	150%
Consolidated net income attributable to shareholders of Aareal Bank AG	-74	161	-146%
Earnings per share (EpS)
Consolidated net income attributable to shareholders of Aareal Bank AG1)	-74	161	-146%
of which: allocated to ordinary shareholders	-90	145	-162%
of which: allocated to AT1 investors	1 6	1 6
Earnings per ordinary share (in €)2)	-1.50	2.42	-162%
Earnings per ordinary AT1 unit (in €)3)	0.16	0.16

1) The allocation of earnings is based on the assumption that net interest payable on the AT1 bond is recognised on an accrual basis.

2) Earnings per ordinary share are determined by dividing the earnings allocated to ordinary shareholders of Aareal Bank AG by the weighted average of ordinary shares outstanding during the financial year (59,857,221 shares). Basic earnings per ordinary share correspond to diluted earnings per ordinary share.

3) Earnings per AT1 unit (based on 100,000,000 AT1 units with a notional amount of 3 € each) are determined by dividing the earnings allocated to AT1 investors by the weighted average of AT1 units outstanding during the financial year. Earnings per AT1 unit (basic) correspond to (diluted) earnings per AT1 unit.

Note: All 2020 figures preliminary and unaudited

Aareal Bank Group

Results 2020 by segments

	Structured Property Financing		Services Bank	Consulting /	A a Aareon r e		Consolidation/ Reconciliation		Aareal Bank Group
	01.01.- 31.12. 2020	01.01- 31.12. 2019	01.01.- 31.12. 2020	01.01- 31.12. 2019	01.01.- 31.12. 2020	01.01- 31.12. 2019	01.01.- 31.12. 2020	01.01- 31.12. 2019	01.01.- 31.12. 2020	01.01- 31.12. 2019
€ mn
Net interest income	474	549	3 9	-15	-1	-1	0	0	512	533
Loss allowance	344	9 0	0	0	0	0			344	9 0
Net commission income	8	1 0	2 6	2 3	213	208	-13	-12	234	229
Net derecognition gain or loss	2 8	6 4							2 8	5 4
Net gain or loss from financial instruments (fvpl)	-32	1	0		0	0			-32	1
Net gain or loss on hedge accounting	6	-4							6	-4
Net gain or loss from investments accounted for using the equity method	2	1			-1	0			1	1
Administrative expenses	227	254	6 8	7 3	188	173	-14	-12	469	488
Net other operating income / expenses	-14	-1	0		4	3	-1	0	-11	2
Operating profit	-99	276	-3	-65	2 7	3 7	0	0	-75	248
Income taxes	-14	9 5	-1	-21	9	1 1			-6	8 5
Consolidated net income	-85	181	-2	-44	1 8	2 6	0	0	-69	163
Allocation of results
Cons. net income attributable to non-controlling interests	0	0	0	0	5	2			5	2
Cons. net income attributable to shareholders of Aareal Bank AG	-85	181	-2	-44	1 3	2 4	0	0	-74	161

Aareal Bank Group

Results – quarter by quarter

	Structured Property Financing					Consulting / Services Bank				Aareon				Consolidation / Reconciliation					Aareal Bank Group
	Q4	Q3 2020	Q2	Q1	Q4 2019	Q4	Q3 2020	Q2	Q1	Q4 2019	Q4	Q3 2020	Q2	Q1	Q4 2019	Q4	Q3 2020	Q2	Q1	Q4 2019	Q4	Q3 2020	Q2	Q1	Q4 2019
€ mn
Net interest income	129	119	113	113	135	10	9	10	10	- 5	0	0	- 1	0	0	0	0	0	0	0	139	128	122	123	130
Loss allow ance	177	61	48	58	35	0				0	0	0	0	0	0						177	61	48	58	35
Net commission income	4	1	1	2	4	8	6	7	5	6	58	53	49	53	58	- 4	- 3	- 3	- 3	- 3	66	57	54	57	65
Net derecognition gain or loss	9	3	9	7	22																9	3	9	7	22
Net gain / loss from fin. instruments (fvpl)	-21	- 4	-17	10	- 4			0			0	0	0	0	0						-21	- 4	-17	10	- 4
Net gain or loss on hedge accounting	2	2	1	1	0																2	2	1	1	0
Net gain / loss from investments acc. for using the equity method	2				1						- 1	0	0	0	0						1	0	0	0	1
Administrative expenses	54	56	49	68	59	18	15	17	18	16	50	46	46	46	46	- 5	- 3	- 3	- 3	- 3	117	114	109	129	118
Net other operating income / expenses	- 3	0	-11	0	- 1	0	0	0	0	1	3	0	1	0	1	- 1	0	0	0	0	- 1	0	-10	0	1
Operating profit	-109	4	- 1	7	63	0	0	0	- 3	-14	10	7	3	7	13	0	0	0	0	0	-99	11	2	11	62
Income taxes	-18	9	- 8	3	21	1	- 1	0	- 1	- 4	4	2	1	2	3						-13	10	- 7	4	20
Consolidated net income	-91	- 5	7	4	42	- 1	1	0	- 2	-10	6	5	2	5	10	0	0	0	0	0	-86	1	9	7	42
Cons. net income attributable to non controlling interests	0	0	0	0	0	0	0	0	0	0	3	1	0	1	0						3	1	0	1	0
Cons. net income attributable to ARL shareholders	-91	- 5	7	4	42	- 1	1	0	- 2	-10	3	4	2	4	10	0	0	0	0	0	-89	0	9	6	42

Aareal Bank Group Results Q4 2020

	01.10.-	01.10.-	Change
	31.12.2020	31.12.2019
	€ mn	€ mn
Profit and loss account
Net interest income	139	130	7 %
Loss allowance	177	3 5	406%
Net commission income	6 6	6 5	2 %
Net derecognition gain or loss	9	2 2	-59%
Net gain or loss from financial instruments (fvpl)	-21	-4	425%
Net gain or loss on hedge accounting	2	0
Net gain or loss from investments accounted for using the equity method	1	1	0 %
Administrative expenses	117	118	-1%
Net other operating income / expenses	-1	1	0 %
Operating Profit	-99	6 2	-260%
Income taxes	-13	2 0	-165%
Consolidated net income	-86	4 2	-305%
Consolidated net income attributable to non-controlling interests	3	0
Consolidated net income attributable to shareholders of Aareal Bank AG	-89	4 2	-312%
Earnings per share (EpS)
Consolidated net income attributable to shareholders of Aareal Bank AG1)	-89	4 2	-312%
of which: allocated to ordinary shareholders	-93	3 8	-345%
of which: allocated to AT1 investors	4	4
Earnings per ordinary share (in €)2)	-1.56	0.62	-352%
Earnings per ordinary AT1 unit (in €)3)	0.04	0.04

1) The allocation of earnings is based on the assumption that net interest payable on the AT1 bond is recognised on an accrual basis.

2) Earnings per ordinary share are determined by dividing the earnings allocated to ordinary shareholders of Aareal Bank AG by the weighted average of ordinary shares outstanding during the financial year (59,857,221 shares). Basic earnings per ordinary share correspond to diluted earnings per ordinary share.

3) Earnings per AT1 unit (based on 100,000,000 AT1 units with a notional amount of 3 € each) are determined by dividing the earnings allocated to AT1 investors by the weighted average of AT1 units outstanding during the financial year. Earnings per AT1 unit (basic) correspond to (diluted) earnings per AT1 unit.

Note: All 2020 figures preliminary and unaudited

Aareal Bank Group

Results Q4 2020 by segments

	Structured Property Financing		Consulting / Services Bank		A a Aareon r e		Consolidation/ Reconciliation		Aareal Bank Group
	01.10.- 31.12. 2020	01.10.- 31.12. 2019	01.10.- 31.12. 2020	01.10.- 31.12. 2019	01.10.- 31.12. 2020	01.10.- 31.12. 2019	01.10.- 31.12. 2020	01.10.- 31.12. 2019	01.10.- 31.12. 2020	01.10.- 31.12. 2019
€ mn
Net interest income	129	135	1 0	-5	0	0	0	0	139	130
Loss allowance	177	3 5	0	0	0	0			177	3 5
Net commission income	4	4	8	6	5 8	5 8	-4	-3	6 6	6 5
Net derecognition gain or loss	9	2 2							9	2 2
Net gain or loss from financial instruments (fvpl)	-21	-4			0	0			-21	-4
Net gain or loss on hedge accounting	2	0							2	0
Net gain or loss from investments accounted for using the equity method	2	1			-1	0			1	1
Administrative expenses	5 4	5 9	1 8	1 6	5 0	4 6	-5	-3	117	118
Net other operating income / expenses	-3	-1	0	1	3	1	-1	0	-1	1
Operating profit	-109	6 3	0	-14	1 0	1 3	0	0	-99	6 2
Income taxes	-18	2 1	1	-4	4	3			-13	2 0
Consolidated net income	-91	4 2	-1	-10	6	1 0	0	0	-86	4 2
Allocation of results
Cons. net income attributable to non-controlling interests	0	0	0	3	3	0			3	0
Cons. net income attributable to shareholders of Aareal Bank AG	-91	4 2	-1	-10	3	1 0	0	0	-89	4 2

Asset quality

Commercial real estate finance portfolio (CREF)

€ 27.2 bn highly diversified

2) Performing CREF-portfolio only (exposure).

Commercial real estate finance portfolio (CREF) by country

€ 27.2 bn highly diversified

Note: All 2020 figures preliminary and unaudited

Commercial real estate finance portfolio (CREF) by property types € 27.2 bn highly diversified

Note: All 2020 figures preliminary and unaudited

Development commercial real estate finance portfolio By region

Development commercial real estate finance portfolio By property type

Western Europe (ex Germany) CREF portfolio

Total volume outstanding as at 31.12.2020: € 9.4 bn

Note: All 2020 figures preliminary and unaudited

2) Performing CREF-portfolio only (exposure).

German CREF portfolio

Total volume outstanding as at 31.12.2020: € 3.0 bn

1) Performing CREF-portfolio only (exposure).

Southern Europe CREF portfolio

Total volume outstanding as at 31.12.2020: € 2.9 bn

1) Performing CREF-portfolio only (exposure).

Eastern Europe CREF portfolio

Total volume outstanding as at 31.12.2020: € 1.4 bn

Northern Europe CREF portfolio

Total volume outstanding as at 31.12.2020: € 1.3 bn

Note: All 2020 figures preliminary and unaudited

North America CREF portfolio

Total volume outstanding as at 31.12.2020: € 8.4 bn

1) Performing CREF-portfolio only (exposure).

Asia / Pacific CREF portfolio

Total volume outstanding as at 31.12.2020: € 0.8 bn

2) Performing CREF-portfolio only (exposure).

Spotlight: Hotel Portfolio

Key facts

64 Note: All 2020 figures preliminary and unaudited

Key findings

▪ Well diversified by 236 hotels in 19 countries

The Aareal hotel portfolio is:

• Well balanced in terms of brand and hotel category
• Well backed by i.a. sound public companies, sovereign wealth funds and HNWI who have shown their financial commitment to the assets throughout this crisis

• Conservatively leveraged with sufficient buffer for value decreases caused by the current crisis

• Of the top 15 loans (all are loans above € 150 mn, of which 12 are portfolio financings), only 6 were provided with additional liquidity since March. Overall, 35% (~ € 3 bn) of our hotel exposure has received liquidity support since the beginning of the year.

• The sum of all hotel loan support financed so far represents approximately 1.4% of the total hotel portfolio size.
• 45% portfolio deals vs. 55% single assets deals (portfolio deals are all cross collateralised to the extend legally permissible)

Market developments

66 Note: All 2020 figures preliminary and unaudited

Asset quality: Hotel Portfolio

Hotel portfolio well positioned to master Covid-19 crisis

Expectations and examples

	▪ Catch up effect for business related travel expected to be significant, as is pent up demand for personal travel
Expectations	▪ In the interim, people will learn to live and travel with Covid-19 and not against it
	▪ Final resolution with accepted treatment / vaccine
	▪ Currently, Resort Hotels and drive-to-destinations far better, while China is a possible projection on how hotels will fare, as Covid-19 is under control
	▪ With our profound know-how and well-established network in hospitality industry, we are expecting to apply our expertise and USPs to generate attractive risk / return through the cycle
A picture is worth a thousand words…

Segments

Segment: Aareon KPIs

Aareon anticipates pick up in digital solutions, steadfast on R&D spend

1) Adj. EBITDA excl. New Products/Inorganic and One-offs

• Adj. EBITDA virtually stable at € 62 mn (€ 64 mn py) growing digital business compensated lower Consulting revenues due to Covid-19 and higher costs via increasing R&D investments
• Adj. EBITDA margin virtually stable at previous year level at 24% (25% py) – business growth balanced the Covid-19 impact and high R&D investments keeping the margin at last year's level
• Overall, Aareon expects an acceleration of digitization on the backdrop of Covid-19. In the wake of recent developments however, Aareon foresees restrictions to the Consulting business in 2021, yet less pronounced than in 2020
• Over the last 12 months, Aareon's RPU amounted to ~ € 24, due to lower Consulting revenues and higher units through customer wins
• Aareon spent ~22% of total software revenues for research and development (R&D) purposes, picking up in line with communicated temporary increase
• FY 20 operating cash flow at € 55 mn (FY 2019: € 44 mn); higher realisation of receivables and higher recurring revenue invoicing end of year

Note: All 2020 figures preliminary and unaudited

Segment: Consulting / Services Bank

More transparency and additional opportunities

Additional opportunities…

• … sustained growth of NCI: +13% CAGR planned from 2019 to 2022
• … option on increasing NII if rates rise >0%
• … diversification of funding mix, well recognized by rating agencies
• … cross selling between Aareal and Aareon

Capital, B/S, Funding/Liquidity & Treasury Portfolio

Treasury portfolio € 7.2 bn (2019: € 7.3 bn) of high quality and highly liquid assets

As at 31.12.2020 – all figures are nominal amounts 1) Composite Rating

Note: All 2020 figures preliminary and unaudited

Aareal Next Level – 360^o-review

2023 Target RoE post tax above peers… …despite higher CET1 Ratio

2023 RoE post tax – Broker estimates1)

2023 CET1 Ratio – Broker estimates2)

Note: All 2020 figures preliminary and unaudited

Next Steps in our ESG Journey

Strengthening ESG as an integral part of our DNA by refining our strategy and setting ambitious goals and targets

1) e.g. Building certificates (i.e. DGNB, BREEAM, HQE, LEED, NABERS) or energy-performance certificates based on an ongoing dialogue with our clients as well as research in external databases

Regulation

SREP (CET 1) requirements

Demonstrating conservative and sustainable business model

Dividend Policy

Aareal Next Level

Our Dividend Policy temporarily suspended

49

^{52 53 54}

▪ Attractive dividend policy and significant book value growth created sustainable value for Aareal and hence our shareholders

1) ECB approval required

AT1: ADI of Aareal Bank AG

Interest payments and ADI of Aareal Bank AG

Available Distributable Items (as of end of the relevant year)

€ mn	31.12. 2016	31.12. 2017	31.12. 2018	31.12. 2019	31.12. 2020
Net Retained Profit ▪ Net income ▪ Profit carried forward from previous year ▪ Net income attribution to revenue reserves	122 122 - -	147 147 - -	126 126 - -	120 120 - -	90 90 - -
+ Other revenue reserves after net income attribution	720	720	720	720	840
Total dividend potential before amount blocked1) =	842	870	846	840	930
./. Dividend amount blocked under section 268 (8) of the German Commercial Code ./. Dividend amount blocked under section 253 (6) of the German Commercial Code	235 28	283 35	268 42	314 40	320 43
= Available Distributable Items1)	579	552	536	486	566
+ Increase by aggregated amount of interest expenses relating to Distributions on Tier 1 Instruments1)	46	32	24	23	21
= Amount referred to in the relevant paragraphs of the terms and conditions of the respective Notes as being available to cover Interest Payments on the Notes and Distributions on other Tier 1 Instruments1)	625	584	560	509	587

1) Unaudited figures for information purposes only

Definitions and contacts

Definitions

= New Business	Newly acquired business + renewals
Common Equity = Tier 1 ratio	CET 1 Risk weighted assets
= Pre tax RoE	Operating profit/income ./. loss attributable to non-controlling interests ./. AT1 coupon Average IFRS equity excl. non-controlling interests, AT1 and dividends
= CIR	Admin expenses (excl. bank levy) Net income
= Net income	net interest income + net commission income + net result on hedge accounting + net trading income + results from non-trading assets + results from investments accounted for at equity + results from investment properties + net other operating income
Net stable funding = ratio	Available stable funding Required stable funding
Liquidity coverage = ratio	Total stock of high quality liquid assets Net cash outflows under stress
= Earnings per share	operating profit ./. income taxes ./. income/loss attributable to non controlling interests ./. net AT1 coupon Number of ordinary shares
= Yield on Debt	NOI x 100 (Net operating income, based on 12-months forward looking estimate) Outstanding incl. prior/pari-passu loans (without developments)
= CREF-portfolio	Commercial real estate finance portfolio excl. private client business and WIB's public sector loans
= REF-portfolio	Real estate finance portfolio incl. private client business and WIB's public sector loans
= NPL-ratio	Defaulted exposure acc. CRR (excl. exposure in cure period) / Total CREF Portfolio

Contacts

Jürgen Junginger

Managing Director Investor Relations Phone: +49 611 348 2636 juergen.junginger@aareal-bank.com

Sebastian Götzken

Director Investor Relations Phone: +49 611 348 3337 sebastian.goetzken@aareal-bank.com

Carsten Schäfer

Director Investor Relations Phone: +49 611 348 3616 carsten.schaefer@aareal-bank.com

Karin Desczka

Manager Investor Relations Phone: +49 611 348 3009 karin.desczka@aareal-bank.com

Julia Taeschner

Group Sustainability Officer Director Investor Relations Phone: +49 611 348 3424 julia.taeschner@aareal-bank.com

Daniela Thyssen

Manager Sustainability Management Phone: +49 611 348 3554 daniela.thyssen@aareal-bank.com

Leonie Eichhorn

Sustainability Management Phone: +49 611 348 3433 leonie.eichhorn@aareal-bank.com

Robin Weyrich

Sustainability Management Phone: +49 611 348 2335 robin.weyrich@aareal-bank.com

Disclaimer

© 2021 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. The securities of Aareal Bank AG are not registered in the United States of America and may not be offered or sold except under an exemption from, or pursuant to, registration under the United States Securities Act of 1933, as amended. 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. The securities of Aareal Bank AG are not registered in the United States of America and may not be offered or sold except under an exemption from, or pursuant to, registration under the United States Securities Act of 1933, as amended.

This presentation may contain forward-looking statements of future expectations and other forward-looking 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 forward-looking statement or any other information contained herein.

Thank you.