Aareal Bank AG

Investor Presentation • May 9, 2018

Analyst Conference Call Q1 2018 results

May 9, 2018 Hermann J. Merkens, CEO

Agenda

• Highlights
• Group results at a glance
• Segment performance
• Group results
• B/S structure, capital & funding position
• Asset quality
• Outlook 2018
• Appendix
• Definitions and contacts

Highlights Solid start into 2018

Robust economic development.

Financial markets with increased volatility due to political uncertainties and raised interest rates in the USA. Ongoing or even tougher competition in the CRE lending markets.

Operating profit of € 67 mn (Q1/2017: € 71 mn) within expectations. EpS of 0,65 € (Q1/2017: 0,63 €)

Solid new business origination with good margins in the structured property financing segment, no burden from risk provisioning

NCI up, mainly due to positive development of Aareon

FY-outlook confirmed

Group results at a glance

Group results at a glance Solid quarter, in line with full year targets

€ mn	Q1 '17	Q2 '17	Q3 '17	Q4 '17	Q1'18	Comments
Net interest income (incl. derecognition result)	164	158	164	148	139	New business margins above plan Lower effects from derecognition Portfolio size slightly below plan
Allowance for credit losses	2	25	26	29	0	No burden from risk provisioning Confirming FY-target
Net commission income	48	49	48	61	50	Aareon on track, confirming FY-targets
FV- / hedge-result	-4	1	11	-1	1
Admin expenses	139	129	120	123	128	Incl. European banking levy and costs for Deposit Protection Guarantee Schemes
Others	4	55	5	10	5
Operating profit	71	109	82	66	67	Solid quarter, in line with full year targets
Income taxes	24	42	31	18	23	FY 2018 tax ratio of ~34% assumed
Minorities / AT1	9	5	4	4	5	Savings from redemption of hybrid instrument from Q2 2017 onwards
Consolidated net income allocated to ord. shareholders	38	62	47	44	39
Earnings per share [€]	0.63	1.05	0.78	0.74	0.65

Segment performance

Structured property financing

Despite challenging markets good new business origination in Q1

• Despite lower transaction volumes new business volume as planned, high US share
• Newly acquired business:
• Gross margins in Q1 2018 of around 250 bps (~ 220 bps after FX) due to high US share
• Sticking to FY margin target of 190-200 bps
• Slight RE portfolio2) reduction q-on-q to € 25.9 bn (31.12.2017: € 26.4 bn)

1) Incl. renewals

2) RE-business incl. private client business (€ 0.7 bn) and WIB's public sector loans (€ 0.5 bn)

Consulting / Services Aareon sales revenues above previous year

P&L C/S Segment	Q1 '17	Q2 '17	Q3 '17	Q4 '17	Q1 '18
€ mn
Sales revenue	54	55	53	64	56
Own work capitalised	1	1	1	2	1
Other operating income	1	1	1	4	1
Cost material purchased	9	9	8	9	9
Staff expenses	35	36	38	42	37
D, A, impairment losses	3	3	3	4	4
Other operat. expenses	15	15	13	18	16
Others	0	0	0	0	0
Operating profit	-6	-6	-7	-4	-8

• Aareon revenues of € 55 mn (Q1 2017: € 52 mn), EBT of € 6 mn, EBT margin ~11%
• Aareon EBT below last years' figure due to shift of projects, EBT in line with full year target
• Aareon revenues resulting from growth in all product lines, digital products with highest growth rates
• Deposit volume on a high level (Ø of € 10.2 bn in Q1)
• Focussing on further shift into sustainable deposits
• Deposit margins still burdening segment result by interest rate environment

Group results Q1 2018

Net interest income1)

New business margins above plan, lower effects from early repayments

• Portfolio size slightly below plan
• Slight RE portfolio reduction q-on-q to € 25.9 bn (31.12.2017: € 26.4 bn)
• Lower effects from derecognition (€ 6 mn)
• Good new business margins of ~250 bps (~220 bps after FX): sticking to FY target of 190-200 bps
• Deposit margins still burdened by interest rate environment
• Confirming FY-target

Effects from derecognition of financial instruments to be reported separately under IFRS 9 starting 2018 (mainly effects from early repayments)

Allowance for credit losses (LLP) No burden from risk provisioning

Confirming FY-target

Net commission income Aareon on track

• Aareon
• Revenues of € 55 mn (Q1 2017: € 52 mn) resulting from growth in all product lines
• Digital products with highest growth rates
• Q4 regularly includes positive seasonal effects
• Confirming FY-targets

Admin expenses

Incl. European banking levy and Deposit Protection Guarantee Schemes

• Admin expenses in Q1 2018 include
• € 20 mn for the European bank levy and for the Deposit Protection Guarantee Schemes (both fully booked in Q1)
• € 4 mn transformation costs (FY 2018 plan: € 25 mn)
• Reversal of restructuring provisions of € 3 mn (related to the acquisition of former CCB and WIB)
• Confirming FY-target

B/S structure, capital & funding position

B/S structure according to IFRS As at 31.03.2018: € 41.3 bn (31.12.2017: € 41.9 bn)

• Conservative balance sheet with structural over borrowed position
• Average maturity of long term funding > average maturity of RSF loans
• 0 5 10 15 20 25 30 35 40 Assets Liabilities & equity 4.0 (4.1) Other assets1) 24.6 (25.1) Commercial real estate finance portfolio 9.6 (9.9) Treasury portfolio 24.8 (25.4) Long-term funds and equity of which - 20.7 (21.3) long-term funds - 1.5 (1.5) subordinated capital - 2.6 (2.6) shareholders' equity 9.3 (9.2) Deposits from housing industry clients 2.4 (2.5) Other liabilities 4.8 (4.8) Money market of which cover pools 3.1 (2.8) Money market

1) Other assets includes € 0.7 bn private client portfolio and WIB's € 0.5 bn public sector loans

45

€ bn

Capital ratios Strong capital ratios

• Fulfilling Basel IV from day 1
• Remaining regulatory uncertainties well buffered (e.g. Hard test)
• Capital ratios significantly above SREP requirements
• T1-Leverage ratio : 6.2%

1) B4 RWA estimate based on 72.5% output floor according final Basel IV framework as of December 7, 2017; subject to EU implementation and further regulation issues (eg. EBA requirement / TRIM)

2) After dividend 2017, no interim profit recognition in CET 1 capital in 2018

16 3) Fully loaded

4) Acc. COREP

Refinancing situation Diversified funding sources and distribution channels

• Very strong deposit base
• Q1 2018 funding activities
• Successful placement of Pfandbrief benchmark transactions (EUR 500 mn 6.3Y)
• Senior unsecured (~€ 200 mn)
• Fulfilling liquidity-KPIs
• NSFR > 1
• LCR >> 1

Asset quality

Commercial real estate finance portfolio1) € 24.6 bn highly diversified and sound

1) CRE-business only, private client business (€ 0.7 bn) and WIB's public sector loans (€ 0.5 bn) not included

Commercial real estate finance portfolio1) Portfolio details by country

NPL portfolio Further declining NPL volume and NPL ratio

Coverage ratio of 40%

Considering collaterals, NPL's fully covered

NPL/Total CRE-portfolio

• NPL ratio ex signed Italian restructured loans
• NPL ratio acc. Reg. Disclosure Report

Treasury portfolio € 8.0 bn of high quality and highly liquid assets

Outlook 2018

Outlook 2018 Confirming full year targets

Net interest income incl. effects from derecognition of financial instruments	 € 570 mn - € 610 mn
Allowance for credit losses1)	 € 50 mn - € 80 mn
Net commission income	 € 215 mn - € 235 mn
Admin expenses	 € 470 mn - € 500 mn
Operating profit	 € 260 mn - € 300 mn
Pre-tax RoE	 9.5% - 11.0%
EpS	 € 2.60 - € 3.00
Target portfolio size	 € 25 bn - € 28 bn
New business origination2)	 € 7 bn - € 8 bn

1) As in 2017, the bank cannot rule out additional allowances for credit losses

2) Incl. renewals

3) After segment adjustments

Conclusion Well positioned to continue successful development

Key takeaways
Aareal Bank Group after solid Q1 on track
Operating profit completely in line with expectations
Confirming FY-targets

Appendix Group results

Aareal Bank Group Results Q1 2018

	01.01.- 31.03.2018	01.01.- 31.03.20171)	Change
	€ mn	€ mn
Profit and loss account
Net interest income	133	154	-14%
Allowance for credit losses	0	2
Net commission income	50	48	4%
Net derecognition gain or loss	6	10	-40%
Net gain or loss from finacial assets (fvpl)	3	-1
Net result on hedge accounting	-2	-3
Results from investments accounted for at equity
Administrative expenses	128	139	-8%
Net other operating income / expenses	5	4	25%
Operating Profit	67	71	-6%
Income taxes	23	24	-4%
Consolidated net income	44	47	-6%
Consolidated net income attributable to non-controlling interests	1	5	-80%
Consolidated net income attributable to shareholders of Aareal Bank AG	43	42	2%
Earnings per share (EpS)
Consolidated net income attributable to shareholders of Aareal Bank AG2)	43	42	2%
of which: allocated to ordinary shareholders	39	38	3%
of which: allocated to AT1 investors	4	4	0%
Earnings per ordinary share (in €)3)	0.65	0.63	3%
Earnings per ordinary AT1 unit (in €)4)	0.04	0.04	0%

• 1) Comparative amounts reclassified according to the new classification format
• 2) The allocation of earnings is based on the assumption that net interest payable on the AT1 bond is recognised on an accrual basis.
• 3) 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.
• 4) 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.

Aareal Bank Group Results Q1 2018 by segments

	Financing	Structured Property	Services	Consulting /	Consolidation/ Reconciliation		Aareal Bank Group
	01.01.- 31.03. 2018	01.01.- 31.03. 20171)	01.01.- 31.03. 2018	01.01.- 31.03. 2017	01.01.- 31.03. 2018	01.01.- 31.03. 2017	01.01.- 31.03. 2018	01.01.- 31.03. 20171)
€ mn
Net interest income	136	157	0	0	-3	-3	133	154
Allowance for credit losses	0	2	0				0	2
Net commission income	1	1	47	45	2	2	50	48
Net derecognition gain or loss	6	10					6	10
Net gain or loss from finacial assets (fvpl)	3	-1					3	-1
Net result on hedge accounting	-2	-3					-2	-3
Results from investments accounted for at equity
Administrative expenses	74	89	55	51	-1	-1	128	139
Net other operating income / expenses	5	4	0	0	0	0	5	4
Operating profit	75	77	-8	-6	0	0	67	71
Income taxes	26	26	-3	-2			23	24
Consolidated net income	49	51	-5	-4	0	0	44	47
Allocation of results
Cons. net income attributable to non-controlling interests	0	4	1	1			1	5
Cons. net income attributable to shareholders of Aareal Bank AG	49	47	-6	-5	0	0	43	42

Aareal Bank Group Results – quarter by quarter

	Structured Property Financing					Consulting / Services				Consolidation / Reconciliation					Aareal Bank Group
	Q1 2018	Q4	Q3 20171)	Q2	Q1	Q1 2018	Q4	Q3 2017	Q2	Q1	Q1 2018	Q4	Q3 2017	Q2	Q1	Q1 2018	Q4	Q3 20171)	Q2	Q1
€ mn
Net interest income	136	139	147	153	157	0	0	0	0	0	-3	-4	-3	-2	-3	133	135	144	151	154
Allowance for credit losses	0	29	26	25	2	0										0	29	26	25	2
Net commission income	1	3	1	2	1	47	55	45	46	45	2	3	2	1	2	50	61	48	49	48
Net derecognition gain or loss	6	13	20	7	10											6	13	20	7	10
Net gain or loss from	3	1	10	4	-1					1						3	1	10	4	-1
finacial assets (fvpl)
Net result on hedge accounting	-2	-2	1	-3	-2					0						-2	-2	1	-3	-3
Results from investments
accounted for at equity
Administrative expenses	74	62	68	77	89	55	63	53	53	51	-1	-2	-1	-1	-1	128	123	120	129	139
Net other operating income /	5	7	4	54	4	0	4	1	1	0	0	-1	0	0	0	5	10	5	55	4
expenses
Operating profit	75	70	89	115	77	-8	-4	-7	-6	-6	0	0	0	0	0	67	66	82	109	71
Income taxes	26	19	34	44	26	-3	-1	-3	-2	-2						23	18	31	42	24
Consolidated net income	49	51	55	71	51	-5	-3	-4	-4	-4	0	0	0	0	0	44	48	51	67	47
Cons. net income attributable to non-controlling interests	0	0	0	0	4	1	0	0	1	1						1	0	0	1	5
Cons. net income attributable to shareholders of Aareal Bank AG	49	51	55	71	47	-6	-3	-4	-5	-5	0	0	0	0	0	43	48	51	66	42

Aareal 2020

Aareal 2020 – Adjust. Advance. Achieve. Our way ahead

Adjust

Safeguard strong base in a changing environment

• Enhance efficiency
• Optimise funding
• Anticipate regulation

Achieve

Create sustainable value for all stakeholders

• Realise strategic objectives for the Group and the segments
• Consistently implement required measures
• Achieve ambitious financial targets

Adjust

Aareal 2020 – Adjust. Advance. Achieve Our growth program is well on track – we have successfully

adjusted our organisational structure…

Achievements so far: (extract) Targets: (extract)

• Alignment of structures and processes successfully implemented to increase efficiency
• Further development of the future IT-infrastructure
• Balance sheet structure / funding optimised: new investor groups made accessible
• Housing industry deposits stabilised as a crisis proven refinancing source – volume on forecasted high level (~ € 10 bn)

• Fulfilment of Basel IV requirements from day 1, capital ratios significantly increased, IFRS 9 implemented

• Continued alignment of structures and processes, further digitisation and ongoing optimisation of the IT-infrastructure

• Further increase of flexibility and efficiency, reduction of complexity
• Retention of broadly diversified funding sources
• Efficient use of capital
• Continuous screening of the regulatory environment and early anticipation of possible changes

Aareal 2020 – Adjust. Advance. Achieve.

…for the strengthening of our basis to ensure an accelerated and successful implementation in both segments

	Achievements so far: (extract)	Targets: (extract)
Advance: Structured property financing	 Attractive markets further enhanced (e.g. USA)  Existing exit channels enlarged, additional opportunities identified and cooperations gained  NCA portfolio significantly reduced  Digitisation of internal credit processes as well as clients' interface on track  Mount Street cooperation established, expansion of servicing business	 Continuation of successful business development despite challenging environment with a focus on flexible allocation in the most attractive markets  Expansion of existing and developing of new exit strategies  Ongoing reduction of NCA-portfolio  Tapping new (digital) business opportunities along the value added chain  Identification and making use of additional potentials of the Mount Street cooperation
Advance: Consulting/ Services	 Position within the environment of the housing industry further strengthened  Utility market successfully tapped  Successful CRE-growth strategy, e.g. two acquisitions in 2017  Cross-selling activities of digital products in Europe launched, e.g. via digital platform  Cooperations with start-ups intensified	 Further development of digital solutions portfolio  Ongoing penetration of relevant eco systems and tapping into neighbouring markets  Developing of new markets in cooperation with the housing industry (B2B2C; B2C)  Intensifying cooperations focussing on start-ups, development of Aareon Ventures

Outlook Main takeaways for upcoming years

CET1:

Currently, management sees Basel IV CET1 target ratio of ~12.5% adequate

Excess capital:

• Partial use in lending business to keep portfolio stable at ~ € 26.5 bn
• Further review in 2018

Performance:

• Plan to stabilise NII on current level
• Future growth of total income mainly driven by NCI
• Operating profit will benefit from total income growth, successful transformation incl. efficiency improvements

RoE:

Accordingly RoE minimum target level structure lifted from 10% to 11% pre-tax, well on track to achieve our sustainable ~12% pre-tax RoE target

Dividend:

Confirming dividend policy

Achievements:

• Portfolio reduced: lowered NII and freed up equity
• LLP significantly reduced
• Admin expenses reduced
• NCI increased

Way ahead:

• Stabilising NII (but 'quality over quantity' still valid) and risk costs at 25-30 bps
• Continued reduction of admin expenses (lower transformational one-offs from 2020 onwards)
• Further growth of net commission income
• Future excess capital from NCA-run down to be invested in CRE portfolio (depending on market conditions)

1) The future dividend policy applies provided that the dividend payments resulting from it are consistent with a long-term and sustained business development of Aareal Bank AG. In addition, the dividend payments are subject to the proviso that corresponding dividend proposals have been made by the Management Board and the Supervisory Board for the respective year.

Dividend policy Confirmed

Base dividend

We intend to distribute approx. 50% of the earnings per ordinary share (EpS) as base dividend

Supplementary dividend

In addition, we plan to distribute supplementary dividends, started in 2016 with 10% increasing up to 20-30% of the EpS

Prerequisites:

• No material deterioration of the environment (with longer-term and sustainably negative effects)
• Neither attractive investment opportunities nor positive growth environment

Appendix Basel 4 / IFRS 9 / Defaulted exposure

Basel IV effect Already fulfilling future Basel IV capital requirements

B3 RWA of 11.8 bn with current risk density of 22% would be 13.2 bn (based on 31.12.2016's risk density of 28%) Basel IV:

• New B4-regulation triggers significant RWA-inflation
• Low risk weighted CRE business excessively burdened
• Resulting capital needs precociously anticipated
• Remaining uncertainties:
• EU implementation
• Supervisors' decisions (e.g. on Hard test)

Others:

• 2018 stress test might result in new SREP guidance for 2019 onwards
• Combined efforts on internal models:
• Final EBA requirements: Some parts delivered, QIS announced, some still open
• TRIM exercise still ongoing
• Internal models have to be adjusted / redesigned and approved until mid 2020 to meet EBA deadline

IFRS 9 Remarks

First Time Application

• 1 January 2018
• Transition effects are recognised in equity

Classification and Measurement

• New model for the classification and measurement of financial assets (ac, fvoci or fvpl) based on business models and cash flow characteristics
• Aareal Bank will change B/S structure to measurement categories

Impairment

• Expected loss model:
• Stage 1: LLP based on 12-Month expected credit losses on recognition
• Stage 2: LLP based on lifetime expected credit losses on financial assets with significant increase in credit risk and
• Stage 3: LLP based on lifetime expected credit losses on impaired financial assets
• No LLP for financial assets fvpl, as it is part of gains/losses on the corresponding line item

Financial Statements

• B/S and P/L structure will change, eg. derecognition and modification gains / losses are added
• Extended Notes Disclosures for impairment and hedge accounting

Defaulted exposure

NPL development vs. defaulted exposure acc. Reg. Disc. Report

Defaulted exposure acc. Regulatory Disclosure Report (AIRBA, off-balance) Defaulted exposure KSA

Defaulted Exposure

NPL vs. Stage 3 (IFRS 9) vs. defaulted exposure acc. Reg. Disc. Report

Appendix SREP

SREP (CET 1) requirements

Demonstrating conservative and sustainable business model

1) SREP-CET1 Requirements incl. buffers (Capital Conservation and Countercyclical)

• Corresponding total capital requirement 2018 (Overall Capital Requirement (OCR) incl. buffers, phase-in) amounts to 11.738%
• As of 31 Dec 2017 total capital ratio (phase-in) amounts to 30.0%

Appendix Development commercial real estate finance portfolio

Development commercial real estate finance portfolio Diversification continuously strengthened (in € mn)

Commercial real estate finance portfolio1) Declining NPL volume

1) CRE-business only, private client business (€ 0.7 bn) and WIB's public sector loans (€ 0.5 bn) not included

Spotlight: UK CRE finance portfolio1) € 3.8 bn (~15% of total CRE-portfolio)

• Performing:
• Investment finance only, no developments
• ~ 60% of total portfolio in Greater London area, emphasising on hotels
• < € 200 mn with LTV > 60%
• Theoretical stress on property values (-20%): would lead to portfolio LTV of approx. 73%
• No NPL

1) CRE-business only

Spotlight: Italian CRE finance portfolio1) € 2.8 bn (~11% of total portfolio)

Comments

• Performing:
• Share of developments financed below 10%
• ~ 60% of total portfolio in Greater Rome or Milan area
• € 325 mn with LTV > 60%
• Theoretical stress on property values (-20%): would lead to portfolio LTV of approx. 90%
• NPL: € 723 mn of which
• ~ ¾ restructured3) / agreement in place or planned
• ~ ¼ enforcement4)

Spotlight: Russian CRE finance portfolio1) € 0.4 bn (~2% of total portfolio)

Spotlight: Turkey CRE finance portfolio1) € 0.3 bn (~1% of total portfolio)

Western Europe (ex Germany) CRE finance portfolio1) Total volume outstanding as at 31.03.2018: € 7.9 bn

1) CRE-business only

Southern Europe CRE finance portfolio1) Total volume outstanding as at 31.03.2018: € 3.7 bn

1) CRE-business only

German CRE finance portfolio1)

Total volume outstanding as at 31.03.2018: € 3.5 bn

1) CRE-business only

Eastern Europe CRE finance portfolio1) Total volume outstanding as at 31.03.2018: € 1.5 bn

1) CRE-business only

Northern Europe CRE finance portfolio1) Total volume outstanding as at 31.03.2018: € 1.3 bn

1) CRE-business only

North America CRE finance portfolio1) Total volume outstanding as at 31.03.2018: € 6.5 bn

Asia CRE finance portfolio1) Total volume outstanding as at 31.03.2018: € 0.3 bn

1) CRE-business only

Appendix AT1: ADI of Aareal Bank AG

Interest payments and ADI of Aareal Bank AG

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

	31.12. 2014	31.12. 2015	31.12. 2016	31.12. 2017
€ mn
Net Retained Profit  Net income  Profit carried forward from previous year  Net income attribution to revenue reserves	77 77 - -	99 99 - -	122 122 - -	147 147 - -
+ Other revenue reserves after net income attribution	715	720	720	720
Total dividend potential before amount blocked1) =	792	819	842	870
./. Dividend amount blocked under section 268 (8) of the German Commercial Code ./. Dividend amount blocked under section 253 (6) of the German Commercial Code	240 -	287 -	235 28	283 35
= Available Distributable Items1)	552	532	579	552
+ Increase by aggregated amount of interest expenses relating to Distributions on Tier 1 Instruments1)	57	46	46	32
= 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)	609	578	625	584

1) Unaudited figures for information purposes only

Appendix RWA-split

From asset to risk weighted asset (RWA)

Effective date 31/03/2018

1) Amounts to € 35 mn

Sustainability Performance

Aareal Bank Group Stands for solidity, reliability and predictability

• 1) Basel 3, as at 31.03.2018
• 2) CRE business only, private client business (€ 0.7 bn) and WIB's public sector loans (€ 0.5 bn) not included, as at 31.03.2018
• 3) Mortgage Pfandbriefe and Public-sector Pfandbriefe rated AAA by Fitch; Mortgage Pfandbriefe rated Aaa by Moody's
• 63 4) At our main locations in Wiesbaden and Mainz, selected other German and international sites

Sustainability data Extends the financial depiction of the Group

Key takeaways at a glance

Transparent Reporting – facilitating informed investment decisions

• "COMBINED SEPARATE NON-FINANCIAL REPORT 2017 FOR AAREAL BANK AG"1) and SUSTAINABILITY REPORT 2017 "THINK FUTURE. ACT NOW."2) published on March 28, 2018
• PricewaterhouseCoopers GmbH performed a limited assurance engagement and issued an unqualified review opinion

Sustainability Ratings – confirming the company's sustainability performance

MSCI	Aareal Bank Group with "AA Rating" in highest scoring range for all companies assessed reg. Corporate Governance practices [as per 02/20173)] relative to global peers
oekom	Aareal Bank Group holds "prime status", ranking among the leaders in its industry [since 2012]
Sustainalytics	Aareal Bank Group was classified as "outperformer", ranking among the best 17% of its industry [as per 02/20173)]
GRESB	Aareal Bank Group scores 56 out of 100 in GRESB Debt Assessment [as per 08/2017]
imug	Aareal Bank was rated "positive BBB" in the category "Uncovered Bonds"; the second best result of all 109 rated Financial Institutions [as per 03/20173)]

3) New rating results expected

¹⁾ https://www.aareal-bank.com/fileadmin/DAM\_Content/Verantwortung/Nichtfinanzieller\_Bericht\_2017\_en.pdf

²⁾ https://www.aareal-bank.com/en/responsibility/reporting-on-our-progress/sustainability-reporting/

Definitions and contacts

Definitions

• New Business = Newly acquired business + renewals
• Common Equity Tier 1 ratio = CET1 Risk weighted assets
• Pre tax RoE = Operating profit ./. income/loss attributable to non-controlling interests ./. AT1 cupon Average IFRS equity excl. non-controlling interests, other reserves, AT1 and dividends
• CIR = Admin expenses 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
• Bail-in capital ratio = Equity + subordinated capital (Long + short term funding) – (Equity + subordinated capital)
• Earnings per share = operating profit ./. income taxes ./. income/loss attributable to non controlling interests ./. net AT1 cupon Number of ordinary shares
• Yield on Debt = Net operating income (NOI) x 100 Current commitment incl. prior / pari-passu loans

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 Sustainability Management Phone: +49 611 348 3554 daniela.thyssen@aareal-bank.com
• Robin Weyrich Sustainability Management Phone: +49 611 348 2335 robin.weyrich@aareal-bank.com

Disclaimer

© 2018 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.
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