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Commerzbank AG Investor Presentation 2015

Jun 16, 2015

81_ip_2015-06-16_4d8d448b-168f-47f3-b602-20f04b70787e.pdf

Investor Presentation

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Increased revenues, profits and capital ratios

Goldman Sachs – Nineteenth Annual European Financials Conference

Commerzbank is rigorously orienting its business model to the needs of the real economy

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Incorporates items not allocated to the operating units and Group Treasury

Operating Core Bank segments with increased results

Higher capital allocation to strong core banking franchise in order to strengthen our earnings capacity

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Strategic agenda for the Private Customers segment

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We are creating a multichannel bank that combines modern technology and traditional values such as fairness and competence

Commerzbank with open architecture for mortgage businessin Germany

Provider-independent offers create value-added for customers and growth for the bank

Significant achievements in digitisation towards leadingmultichannel bank in Germany

Strategic agenda for Mittelstandsbank

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We are the long-term strategic partner to the Mittelstand at home and abroad

Proven relationship model "made for Germany"

Core client segments Mittelstandsbank

  • › Mittelstand Germany: 2.5 up to 500 €m T/O
  • Deeply rooted in Germany
  • Strongly export-oriented
  • › Großkunden & International: > 500 €m T/O
  • International groups
  • Connectivity approach and selected local business
  • › Financial Institutions
  • Domestic and foreign financial institutions

Our relationship model for the German Mittelstand

  • ›Mittelstand-centric relationship model
  • › Specific business unit for German Mittelstand since more than 10 years and more than 140 years of corporate banking experience
  • › We are regionally close to our customers and have the same understanding for entrepreneural values
  • › We work closely with our customers as strategic partner with one principal relationship manager serving our customers in their home market as well as abroad supported by product specialist teams

Worldwide relationship model with centrally managed client serviceteam– simplified illustration for inbound business

Sample products Mittelstandsbank

  • ›Payment services
  • ›Structured export finance
  • ›Cross border sublimit
  • ›Documentary business
  • ›Trade financing

Sample productsCorporates & Markets

  • ›FX hedging
  • ›Interest rates hedging
  • ›DCM bonds
  • ›DCM loans

Simplified illustration for inbound business, outbound business managed conversely with our International Desk in Germany. Only sample of entire product portfolio.

The new online portal for corporate customers and the Cash Management Appfeature a revised design with extended functionalities and improved usability

New online portal for corporate customers

  • › Evolved user experience: Go-Live of the newonline portals for corporate customers and financial institutions in 14 different languages
  • › Consistent range of functions: establishedapplications enhanced with extendedfunctionalities set in a consistent portal frame

MSB Cash Management App

  • › Mobile App for the realtime retrieval of bookingsincluding third-party banks
  • ›Overview of up to 15 accounts
  • › Already more than 1,000 downloads in just 13 days since Go-Live (on March 30th, 2015)

Main incubator successfully established in the market, additional innovations currently introduced in Mittelstandsbank

Goals & Success

Goals

  • › Increasedegree of innovation in MSB
  • › Recognize & participate in promising new (disruptive) trends in banking despite given constraints (budget, mind-set, processes)
  • ›Develop new innovative solutions

Achievements

  • ›First investments made1 in
  • › Innovative solutions currently being added to Mittelstandsbank offer
  • › High acceptance (FinTechs) i.e. > 200 concepts received and evaluated
  • › Positioning/ image i.e. successful establishment of FinTech-ecosystem in Frankfurt ("Between The Towers" events2), positive feedback in relevant media

Outlook

Company Building

› First plattfom currently developed jointly with external start-up, and internal stakeholders

Further Investments

›Further Investments during 2015 intended

Marketing

› Continuous development of successful series of "Between The Towers" events and export to Berlin

Cooperation

› Strengthening of cooperation of FinTechs with Mittelstandsbank via main incubator

1) gini: semantic as a service, traxpay: B2B dynamic payments provider. 2) external sponsors acquired to finance series of events.

Strategic agenda for Central & Eastern Europe

› Focus on organic growth, acquisition of new customers and cross-selling at "mBank"› Long-term partnerships with AXA and Orange Polska› Integrated offering of corporate client business and investment banking with clear orientation to Mittelstand› Client-centric services with modern technology in Private Customers business› Leverage offering with advanced online platformSelected growth measures364m Operating profit (€)CIR 47.2%116m45.3%Results FY2014Q1 2015

We want to further grow organically and consistently expand our revenuespotential with innovative technologies under a common brand

Strategic agenda for Corporates & Markets

Selected growth measures

  • › Improvement in market and customer penetration, incl. expansion of capital market financing in bonds and syndicated loans sector
  • › Expansion of risk hedging and investment business with institutional customers
  • › Further increase in cost efficiency through process improvements
  • › Ongoing high capital efficiency despite the effects of Basel 3 implementation

We are continuing to position ourselves as a major international niche player and represent risk-controlled and transparent investment banking

Strategic agenda for Non-Core Assets (NCA)

Value preserving run down

  • › The Non-Core Assets segment comprises the business areas Commercial Real Estate, Public Finance and Deutsche Schiffsbank
  • › We are experts with many years' experience in the management of complex portfolios in commercial real estate finance, public finance and ship finance
  • › Over the coming years, we will be winding down the portfolios managed in this segment in a way which optimizes value, thus opening up additional development prospects for other Commerzbank segments

Our claim: We want to reduce the NCA portfolio in a value-oriented and risk-focused way

* Exposure at default** Wind down in Ship Finance of €0.8bn in Q1 2015 offset by FX effects of €1.3bn

NCA with significant further asset run-down of 28% since year-end 2013

Note: Numbers may not add up due to rounding 1) Deutsche Schiffsbank

Strong Group operating result of €685min Q1 2015 – LLPs significantlydown – Revenues increased in all Core Bank divisions

Capital increase of €1.4bn lifts our CET1 fully phased-in ratio to morethan 10% catching up with our European peer group

1) Includes net profit of Q1 2015 excl. dividend accrual 2) Pro-forma adjusted for capital increase in April 2015 3) According to revised CRD4/CRR rules published 10 Oct 2014

Financial Outlook 2015

Despite the challenging environment we aim to grow revenues and market share in the Core Bank

We expect Loan Loss Provisions for the Group at the level of 2014 with lower LLPs in NCA due to the asset run down

As expenses are under pressure due to regulatory requirements and European bank levy, comprehensive execution of ongoing efficiency programs necessary to keep our cost base stable at ~€7.0bn

We aim to organically increase our Basel III CET1 ratio fully phased-in to significantly more than 10% by the end of 2015 – planning for a dividend 2015 and accruing accordingly

The economic environment since 2012 has generated significant headwinds - we strive to meet our targets

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1) Includes net profit of Q1 2015 excl. dividend accrual 2) Pro-forma adjusted for capital increase in April 2015 3) Post tax RoE for the Core Bank is not reported on a quarterly basis. Operating RoECore Bank in Q1 2015: 15.4%; Op. RoTE Core Bank: 18.2% 4) Leverage-Ratio-Exposure according torevised CRD4/CRR rules published 10 Oct 2014

Source: Deutsche Bundesbank

Thank you !

Goldman Sachs – Nineteenth Annual European Financials Conference

Disclaimer

Investor Relations

This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include, inter alia, statements about Commerzbank's beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates, projections and targets as they are currently available to the management of Commerzbank. Forward-looking statements therefore speak only as of the date they are made, and Commerzbank undertakes no obligation to update any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, among others, the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Commerzbank derives a substantial portion of its revenues and in which it hold a substantial portion of its assets, the development of assetprices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives and the reliability of its risk management policies.

In addition, this presentation contains financial and other information which has been derived from publicly available information disclosed by persons other than Commerzbank ("external data"). In particular, external data has been derived from industry and customer-related data and other calculations taken or derived from industry reports published by third parties, market research reports and commercial publications. Commercial publications generally state that the information they contain has originated from sources assumed to be reliable, but that the accuracy and completeness of such information is not guaranteed and that the calculations contained therein are based on a series of assumptions. The external data has not been independently verified by Commerzbank. Therefore, Commerzbank cannot assume any responsibility for the accuracy of the external data taken or derived from public sources.

Copies of this document are available upon request or can be downloaded from www.commerzbank.com/aktionaere/index.htm

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