DVB Bank Group Investor Presentation Frankfurt/Main, October 2017 - - PowerPoint PPT Presentation

TRUSTWORTHY. FOCUSED. DIVERSIFIED. COMPETENT.

DVB Bank Group – Investor Presentation

Frankfurt/Main, October 2017

Disclaimer

This presentation has been prepared by DVB Bank Group. This presentation does not contain or constitute an offer, or the solicitation of an offer, to buy or subscribe for securities to any person. This document is not a prospectus. The presentation is a short summary description of certain aspects in respect of DVB Bank Group. It may not contain all relevant information in respect of the topics covered. This presentation is therefore not a sufficient basis for any investment decision in respect

• f any securities of DVB Bank Group.

This presentation contains forward-looking statements which include statements about our beliefs and expectations as well as the assumptions underlying them. Such statements speak only as of the day they are made since they are based on plans, estimates and projections currently available to the management of DVB Bank Group. Forward-looking statements contain risks and uncertainties, and it cannot be guaranteed that they will turn out to be correct in light of future events or developments. Information and opinions contained in this presentation have been compiled or arrived from sources believed by DVB Bank Group to be reliable. Any statements about DVB Bank Group’s market position are based on DVB Bank Group’s own estimates, unless explicitly stated otherwise herein. Although the information shown herein has been taken from sources which are believed to be reliable or is based on DVB Bank Group’s own estimates, no warranty or representation is made as to the correctness, completeness and accuracy of the information or the assessments made on its basis. DVB Bank Group 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.

Investor Presentation __ October 2017 __ Disclaimer Page 2

Contents

03/ DVB – Lending volume and portfolio data

27 Lending volume 28 Shipping Finance 29 Aviation Finance 30 Offshore Finance 31 Land Transport Finance 32 Financial Institutions and Syndications 33 DVB Corporate Finance 34 Investment Management

02/ DVB – Business model

21 Competitive strengths

03/ DVB – Financials and outlook

5 Financial figures 13 Own funds and refinancing 15 Rating 16 Macroeconomic environment and forecast 19 Financial calendar

04/ DVB – Further information

36 Shareholder base 37 Board of Managing Directors 38 Staff 39 Imprint 40 Photo credits

Page 3

01/ DVB – Financials and outlook

5 Financial figures 13 Own funds and refinancing 15 Rating 16 Macroeconomic environment and forecast 19 Financial calendar

Preliminary remarks

All statements made regarding net worth, financial position & results relate to DVB Bank Group. All amounts are disclosed in euro and on the basis of IFRS/IAS if not stated otherwise. Unless indicated otherwise, all financial data apply to 30 June 2017 and have been reviewed by auditors.

Page 5 Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Press release as of 31 August 2017 (1)

DVB Bank Group (DVB) posts half-yearly results for 2017

/ Significant increase in allowance for credit losses / Volatile effects from the IAS 39 result Frankfurt/Main, 31 August 2017 – DVB, the specialist in international transport finance, reported a consolidated net loss before taxes of €506.3 million in the first six months of 2017 (previous year: net income of €14.1 million). The net figure was dominated by a significant increase in allowance for credit losses, to €445.3 million (previous year: €83.4 million), reflecting market developments. Moreover, due to the continued narrowing of spreads for euro/US dollar cross-currency swaps, the net result from financial instruments in accordance with IAS 39 fell to €–67.9 million (previous year: €10.0 million). Ralf Bedranowsky, CEO and Chairman of DVB Bank SE's Board of Managing Directors, commented on the Bank's consolidated results: “The increase in allowance for credit losses was largely required for legacy exposures in the Shipping Finance portfolio, and for financings in the Offshore Finance portfolio. These developments reflected the following market trends:

• Given persistent oil price uncertainty, oil and gas companies have continued to reduce their exploration and production spending, which has further

curtailed demand for offshore vessels and equipment. Shipowners remain under pressure from low charter rates and competition for employment. Against this background, owners of vessels and drilling rigs adjusted their capacities, through lay-ups, restructuring or consolidation.

To be continued on next slide

Page 6 Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Press release as of 31 August 2017 (2)

• Excess capacity remained a major challenge on shipping markets throughout the first half of 2017. Container carriers, bulk carriers and tankers are the

three most important sectors for the maritime industry, in terms of transport volumes and services. Especially in container shipping, persistently difficult market conditions have burdened performance amongst shipowners. In this context, increasing consolidation of shipping lines is set to intensify competition amongst shipowners chartering their vessels to line operators. Even though charter rates in container shipping showed some improvement during the first half of 2017, whether this trend will in fact be sustainable is open to question, for two

• reasons. On the one hand, consolidation among shipping lines is accelerating, and on the other hand, charter rates are further burdened, given the

continued delivery of a large number of 20,000 TEU container ships. Consequently, market values of container vessels have not been able to recover so

• far. Looking ahead, the cascading effect caused by substantial deliveries of large container carriers will mostly have a negative effect upon the

development of charter rates and market values in the other size categories. Bulk carriers enjoyed a strong increase in earnings during the first half of 2017. The Baltic Dry Index (BDI) was quoted at an average of 976 points during the first six months of the year – up 101% year-on year. Freight rates were supported by continued Chinese demand for iron ore and coal. The BDI reached its year-to-date high in April, albeit staying far away from the historical peak of more than 10,000 points in 2007/2008. A multi-year comparison shows that charter rates for bulk carriers have remained insufficient, given that a large number of vessels was bought and financed at record prices. Following an improvement during the first quarter of 2017, which was driven by seasonal factors, tanker markets declined again during the second quarter, putting pressure on shipowners' earnings. The extension of OPEC members' agreement to reduce production volumes had a negative impact on tonne-mile demand in the crude oil tanker segment. Yet at the same time, the crude oil tanker fleet grew by 5.5% year-on-year. The significant volume of new tonnage on order – which rose further year-to-date – created an additional burden.

Page 7

To be continued on next slide

Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Press release as of 31 August 2017 (3)

• Excess capacity was accompanied by escalating liquidity shortages faced by shipowners. These described challenging market conditions triggered

numerous new restructuring measures, thus influencing the performance amongst many market participants. As mentioned above, the net result from financial instruments in accordance with IAS 39 amounted to €–67.9 million (previous year: €10.0 million); this was largely driven by the measurement of cross-currency swaps, which the Bank is not allowed to include in its hedge accounting. Based on prudent economic risk management, these derivatives form hedging relationships with the related hedged items, whereby measurement gains and losses reported on a particular record date are neutralised over the entire term of the financings extended. At the beginning of August 2017, DVB received a €500 million contribution to income from our parent company, DZ BANK AG, Deutsche Zentral- Genossenschaftsbank, Frankfurt am Main. DVB was unable to recognise this contribution in income as at 30 June 2017, but will recognise it in income during the third quarter of 2017. The contribution will stabilise both the common equity tier 1 ratio (which stood at 8.9% as at 30 June 2017) as well as the deteriorating key financial indicators, return on equity, cost/income ratio, and Economic Value Added.“ […] DVB's outlook reads as follows: DVB plans to sustain the positive business development in Aviation Finance as well as in Land Transport Finance, and strengthen the earnings power of these businesses. Due to the persistent crisis in the shipping and offshore sectors, DVB expects risk costs in its Shipping Finance and Offshore Finance portfolios to remain high throughout the financial year 2017. Accordingly, risk management in these two divisions will continue to command particular attention, as well as proactive restructuring measures.

Page 8

To be continued on next slide

Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Press release as of 31 August 2017 (4)

The Bank thus expects consolidated return on equity for 2017 (before taxes and before IAS 39) to significantly fall short of the forecast; it is also unlikely to match the forecasts for the other key financial indicators, cost/income ratio and Economic Value Added.. DVB strives to preserve sound core operational earnings before risk costs and before IAS 39. This means that, in addition to the lending business, the Bank will focus on value-added services for clients in its Transport Finance business – such as capital markets products and advisory services. The Bank will keep supporting their shipping clients in a market environment characterised by less liquidity supply, on a selective basis – yet with markedly lower volumes of new business. Structural changes with differing characteristics can be observed in the sub-markets of the global transport sector. Whilst aviation and land transport markets are predominantly shaped by high excess liquidity together with strong margin and competitive pressures, the shipping and offshore industries have yet to see the end of the ongoing consolidation phase. DVB will continue to analyse the business environment in the markets they cover, in great detail – to focus on business opportunities which allow DVB to return to adequate profitability, and to sustainably stabilise for the future.

Page 9 Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

At a glance – Income statement

1 National Association of German Cooperative Banks

01.01.2017− 30.06.2017 01.01.2016− 30.06.2016 Net interest income 108.1 124.5

• 13.2

Allowance for credit losses

• 445.3
• 83.4

– Net interest income after allowance for credit losses

• 337.2

41.1 – Net fee and commission income 51.8 56.5

• 8.3

Results from investments in companies accounted for using the equity method

• 7.2

4.1 – Net other operating income/expenses

• 42.6

4.8 – Total income (before IAS 39)

• 335.2

106.5 – General administrative expenses

• 90.4
• 91.3
• 1.0

Consolidated net income/loss before IAS 39, bank levy, BVR1 Deposit Guarantee Scheme and taxes

• 425.6

15.2 – Net result from financial instruments in accordance with IAS 39

• 67.9

10.0 – Consolidated net income/loss before bank levy, BVR1 Deposit Guarantee Scheme and taxes

• 493.5

25.2 – Consolidated net income/loss before taxes

• 506.3

14.1 – Consolidated net income/loss (after taxes)

• 547.1

10.6 –

IFRS

Page 10

€ mn %

Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Consolidated net income/loss, as at 30 June

Consolidated net income/ loss Income taxes Total income1 General administrative expenses Expenses for the bank levy and the BVR2 Deposit Guarantee Scheme (financial year) Net result from financial instruments in accordance with IAS 39 Consolidated net income/ loss Income taxes Total income1 General administrative expenses Expenses for the bank levy and the BVR2 Deposit Guarantee Scheme (financial year) Net result from financial instruments in accordance with IAS 39

2017 € mn 2016 € mn

1 Composing net interest income after allowance for credit losses, net fee and commission income, result from investments in companies accounted for using the equity method and net other operating income/expenses; 2 National Association of German Cooperative Banks

Page 11

106.5

+10.0

10.6

• 91.3
• 11.1
• 3.5
• 547.1
• 90.4
• 12.8
• 40.8
• 67.9
• 335.2

Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Development of key ratios

Return on equity before taxes % Cost/income ratio % Economic Value Added € mn

30 Jun 2017 30 Jun 2016 30 Jun 2017 30 Jun 2016 30 Jun 2017 30 Jun 2016

Page 12

52.6

• 47.2
• 73.4

91.2 0.6

• 496.0

Investor Presentation __ October 2017 __ Financial figures

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Own funds (in accordance with the CRR) and capital ratios (30 Jun 2017)

€ mn

637.4 0.0 571.2 Common equity tier 1 capital Additional tier 1 capital Tier 2 capital Modified available equity 1,208.6

Total capital ratio: 16.8% Common equity tier 1 ratio: 8.9%

Capital ratios – Basel III

Page 13 Investor Presentation __ October 2017 __ Own funds and refinancing

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Diversified funding composition (30 Jun 2017: €23.5 bn)

1 Nominal volume

Diversified, granular funding base / More than 1,200 investors

Products1 Investors2

6.0% Short-term funding

thereof: 3.3% Short-term deposits banks/customers 2.7% Cash collateral

10.2% Volksbanken Raiffeisen- banken cooperative financial network 1.9% Retail 13.8% Banks 50.3% Institutional investors 23.8% DZ BANK

thereof: 49.9% Senior-unsecured bonds 37.7% Promissory notes 3.1% Subordinated liabilities 3.1% Ship covered bonds 0.2% Long-term deposits 2 Estimates

Page 14

94.0% Long-term funding

Investor Presentation __ October 2017 __ Own funds and refinancing

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Rating development

Feb 2017 Oct 2016 Dec 2011 Mar 2011 Jan 2009 Dec 2006 Aug 2006 Jul 2005 Aug 2004 Aug 2001 Long-term counterparty credit rating A+ A+ A+ A A A A- A- BBB+ BBB+ Short-term credit rating A-1 A-1 A-1 A-1 A-1 A-1 A-2 A-2 A-2 A-2 Outlook negative negative stable stable negative stable positive stable stable negative Debt Issuance Programme: – Subordinated A

Since 1999 DVB has been rated by Standard & Poor's (S&P) at regular intervals. Within the scope of the German Cooperative Financial Services Network's rating, DVB has also been evaluated by Fitch Ratings since 2005.

Mar 2015 Aug 2012 Jun 2009 Jan 2009 Long-term issuer default rating AA- A+ A+ A+ Short-term issuer default rating F1+ F1+ F1+ F1 Debt Issuance Programme: – Long-term senior unsecured – Short-term senior unsecured AA- F1+ A+ F1+

Page 15 Investor Presentation __ October 2017 __ Rating

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Macroeconomic environment (1)

The International Monetary Fund (IMF) has kept its forecasts on the recovery of the global economy (published on 24 July 2017) largely unchanged: it forecasts global economic growth of 3.5% in the year 2017 – slightly above the previous year's level (projection for 2016: 3.1%), albeit with different contributions at the individual country level. / The US growth forecast has been revised downwards slightly. While the markdown in the 2017 forecast reflects in part the weak growth outturn in the first quarter of the year, the major factor behind the growth revision is the assumption that fiscal policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of US fiscal policy

• changes. Market expectations of fiscal stimulus have also receded.

/ China's economic growth is expected to remain at the same level as in the previous year. Full-year growth projections have been revised upwards, reflecting a surprisingly strong first quarter of 2017 which showed the effects of monetary policy easing and supply-side reforms. The IMF's medium-term outlook, however, reflects an expectation that the Chinese authorities will delay the needed fiscal adjustments to meet their target of doubling 2010 real GDP by 2020. However, this delay comes at the cost of further large increases in debt, thus also increasing downside risk. / Euro area growth for the first quarter of 2017 was generally above expectations, maintaining the trend already seen in the fourth quarter of the previous year. Growth projections have therefore been revised up, with loose fiscal policies, favourable financing conditions, and growing momentum in domestic demand seen as key drivers. / Oil prices rebounded in the middle of May, when OPEC surprised the market with an extension of its production cuts through March 2018. However, oil prices then declined until the end of July, amid continued US production growth and strong OPEC exports to the US. Prices are expected to remain around their current levels until the end of 2018.

Page 16 Source: IMF, July 2017 Investor Presentation __ October 2017 __ Macroeconomic environment and forecast

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Macroeconomic environment (2)

DVB agrees with expert opinion and expects further economic growth to remain volatile on the back of the following risk factors: / The difficult-to-predict developments of US regulatory and fiscal policies and the negotiations of post-Brexit arrangements may lead to a more protracted period of political uncertainty. / A faster-than-expected monetary policy normalisation in the US could tighten global financial conditions and trigger reversals in capital flows to emerging economies, as well as an appreciation of the US dollar versus the euro – with adverse repercussions for vulnerable economies. / Should China diminish its recent efforts to address financial sector risks and curb excessive credit growth, this might result in an abrupt growth slowdown, with adverse spillovers to other countries through trade flows and commodity prices. / Increased geopolitical tensions and growing terrorism might impact upon the global economy. / Further developments in commodity prices – especially with respect to crude oil prices – will continue to have a major impact

• n economic growth.

Page 17 Source: IMF, Julyl 2017 Investor Presentation __ October 2017 __ Macroeconomic environment and forecast

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Forecast 2017

Page 18

/ We plan to sustain the positive business development in Aviation Finance as well as in Land Transport Finance, and strengthen the earnings power of these businesses. / We expect risk costs in our Shipping Finance and Offshore Finance portfolios to remain high throughout the financial year 2017 – due to the persistent crisis in the shipping and offshore sectors. Accordingly, risk management in these two divisions will continue to command particular attention, as well as proactive restructuring measures. / We thus expect consolidated return on equity for 2017 (before taxes and before IAS 39) to significantly fall short of the forecast; it is also unlikely to match the forecasts for the other key financial indicators, cost/income ratio and Economic Value Added. / We strive to preserve our sound core operational earnings before risk costs and before IAS 39. This means that, in addition to our lending business, we will focus on value-added services for clients in our Transport Finance business – such as capital markets products and advisory services. / We will keep supporting our shipping clients in a market environment characterised by less liquidity supply, on a selective basis – yet with markedly lower volumes of new business. Structural changes with differing characteristics can be observed in the sub-markets of the global transport sector. Whilst aviation and land transport markets are predominantly shaped by high excess liquidity together with strong margin and competitive pressures, the shipping and offshore industries have yet to see the end of the ongoing consolidation phase. / We will continue to analyse the business environment in the markets we cover, in great detail – to focus on business opportunities which allow us to return to adequate profitability, and to sustainably stabilise for the future.

Investor Presentation __ October 2017 __ Macroeconomic environment and forecast

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Financial calendar

__ 2017

/ Publication of the single-entity and Group Annual Reports 2016 / Publication of the Quarterly Statement – Three-month results 2017 (for the first three months ending 31 March 2017) / Annual General Meeting at the Deutsche Nationalbibliothek, Adickesallee 1, Frankfurt/Main / Publication of the Half-Yearly Financial Report 2017 31 March 2017 11 May 2017 22 June 2017 31 August 2017

Page 19 Investor Presentation __ October 2017 __ Financial calendar

01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

02/ DVB – Business model

21 Competitive strengths

DVB’s mission statement

At DVB, we make deals work. This means striving to seek and develop intelligent and appropriate solutions that meet and even exceed our clients’ needs and expectations. We go the extra mile to constantly and thoroughly research and study our industry. Often, this leads us to challenge conventional wisdom when offering our focused range

• f financing services.

The specialist in international transport finance

Page 21 Investor Presentation __ October 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

DVB’s business model (1)

Asset & Market Research Structured Asset Lending Private Equity Sourcing & Investments Asset Management Client Account Risk Distribution & Loan Participations Corporate Finance Solutions Shipping Finance Aviation Finance Offshore Finance Land Transport Finance

Page 22 Investor Presentation __ October 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

DVB’s ten competitive strengths

Business model  clearly focused, distinctively specialised, diversified in many aspects, cycle-neutral and international in scope Business policy  conservative and sustainable Organisation  transparent structures, swift information flow and prompt decision-making Human resources  highly qualified and experienced Products & services  customised and beyond the typical scope of banking Asset & Market Research  sophisticated, renowned and award-winning Credit portfolio  diversified by multiple criteria and categories Risk management  consistent and forward-thinking Funding  granular and maturity-matched Own funds  sound capital base

10

Page 23 Investor Presentation __ October 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Strengths

/ Clearly focused business model with a unique specialisation, cycle-neutral business approach, and a global presence in all key transport markets / Conservative and sustainable business policy / Transparent structures, with a high degree of flexibility and fast decisions / Highly qualified, experienced staff / Customised products and services, high level of client service, as well as close contacts to manufacturers and leasing companies / Extensive market and asset expertise / Credit portfolio diversified by multiple criteria and categories / Advanced risk management and pricing systems / Granular and matched-maturity funding / Sound capital base through own funds

S

/ Higher liquidity costs, compared to most competitors / Direct relationship between the Bank's business development and GDP growth / Relatively high sector exposure / Global presence requires high staff resources / High staff costs due to high levels of employee qualification in terms of academic expertise and experience / No material client deposits / Exposure to the euro/US dollar exchange rate, with an impact on growth and results

W

/ Realisation of margins in line with risks taken / Expansion of anti-cyclical Investment Management activities / Building new client relationships / Numerous initiatives taken to broaden the product portfolio and enhance cross- selling / Funding available through access to the extensive liquidity offered by the German Cooperative Financial Services Network / Expanding the advisory and other services offered to clients, banks, and investors / Boosting DVB's reputation as a reliable partner to the international transport industry

O

/ High level of early repayments, negatively impacting the net interest margin / Rising number of insolvencies, especially in the shipping and offshore markets / Significant decline in transport asset values, in various market segments / Rising threat of recession, on a global scale / Distortions on the global financial markets / Indebtedness of certain industrial nations and emerging economies / Rise of the US dollar against the euro / Further increasing regulatory requirements / Development of commodity prices, in particular oil prices

T

DVB’s SWOT analysis

Weaknesses Opportunities Threats

Page 24 Investor Presentation __ October 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Instruments for sustainably dealing with credit risks

/ Forecasting future market developments and asset values forms the basis of our portfolio strategy and individual deal decisions / Increased visit frequency depending

• n risk situation

Intensive research and close client contact

/ e.g. specific covenants in the Shipping Finance contracts, like value maintenance clauses

Close monitoring

• f compliance

with all lending agreements

/ Identification of potentially higher risks in case the market environment continues to deteriorate by quarterly portfolio stress tests / Basis: changing asset values (specific haircuts) and counterparties’ creditworthiness (increase of probability

• f default)

Early Warning List

/ Early detection of increased risks of potential problem exposures

Closely Monitored List

/ Close monitoring of transactions that have to be restructured and/or of transactions with a potential or already existing need to recognise allowance for credit losses

Watch List

/ In general, transactions are placed on the LLP List if risks have materialised, and the deal has been classified as defaulted.

Loan Loss Provision List

Page 25 Investor Presentation __ October 2017 __ Competitive strengths 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

59 Land Transport Finance 66 Financial Institutions and Syndications 69 DVB Corporate Finance 74 Investment Management

03/ DVB – Lending volume and portfolio data

27 Lending volume 28 Shipping Finance 29 Aviation Finance 30 Offshore Finance 31 Land Transport Finance 32 Financial Institutions and Syndications 33 DVB Corporate Finance 34 Investment Management

Customer lending volume

US$ bn 30 Jun 2017 31 Dec 2016 % Shipping Finance 12.5 12.6

• 0.8

Aviation Finance 8.2 9.1

• 9.9

Offshore Finance 2.4 2.5

• 4.0

Land Transport Finance 1.7 1.7 – Investment Management 0.6 0.6 – ITF Suisse 0.2 0.6

• 66.7

Business no longer in line with DVB’s strategy 0.1 0.2

• 50.0

Total 25.7 27.3

• 5.9

€ bn 30 Jun 2017 31 Dec 2016 % Shipping Finance 11.0 11.9

• 7.6

Aviation Finance 7.2 8.7

• 17.2

Offshore Finance 2.1 2.4

• 12.5

Land Transport Finance 1.5 1.6

• 6.3

Investment Management 0.5 0.6

• 16.7

ITF Suisse 0.1 0.6

• 83.3

Business no longer in line with DVB’s strategy 0.1 0.1 – Total 22.5 25.9

• 13.1

by business division by region

Page 27

48.9% Shipping Finance 0.5% ITF Suisse 2.2% Investment Management 6.6% Land Transport Finance 9.3% Offshore Finance 32.0% Aviation Finance 48.9% Europe 0.5% Australia & New Zeeland 2.2% South America 4.0% Offshore 4.9% Middle East & Africa 16.4% Asia 23.1% North Amerika 0.5% Business no longer in line with DVB‘s strategy

Investor Presentation __ October 2017 __ Lending volume 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Shipping Finance portfolio (30 Jun 2017: €11.0 bn)

Total lending volume by vessel type Total lending volume by country risk

Page 28

1.3% Ferries, passenger vessels 48.1% Tankers thereof: 14.4% Crude oil tankers 11.6% Gas tankers 11.3% Product tankers 10.8% Chemical tankers 55.2% Europe 3.6% Offshore 3.9% Middle East & Africa 15.2% Asia 21.2% North America 25.7% Bulk carriers 0.9% South & Central America 1.3% Others 1.7% Cruise ships 2.7% Container boxes 3.1% Car carrier 16.1% Container carriers

Investor Presentation __ October 2017 __ Shipping Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Aviation Finance portfolio (30 Jun 2017: €7.2 bn)

Total lending volume by aircraft type Total lending volume by country risk

4.4% Regional jets

thereof: 4.2% Embraer 0.2% Bombardier

5.0% Freighters

thereof: 4.5% Boeing 0.5% Airbus

2.0% Turboprops

thereof: 1.8% ATR 0.2% Bombardier

51.1% Narrowbody pax

thereof: 25.4% Boeing 25.7% Airbus

35.3% Europe 2.2% South & Central America 4.5% Offshore 9.6% Middle East & Africa 23.8% Asia & Australia 37.5% Widebody pax

thereof: 23.1% Boeing 14.4% Airbus

24.6% North America

Page 29 Investor Presentation __ October 2017 __ Aviation Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Offshore Finance portfolio (30 Jun 2017: €2.1 bn)

Total lending volume by asset type Total lending volume by country risk

22.6% Drilling

thereof: 17.7% Rigs 4.9% Drillships

8.5% Floating Production – F(P)SO 51.4% Europe 0.6% Middle East & Africa 6.9% Offshore 12.1% North America 14.0% South & Central America 15.0% Asia 23.8% Subsea

thereof: 10.1% Offshore construction vessels 5.4% Seismic survey vessels 4.2% Multi-function service vessels 1.4% Standby rescue vessels 2.7% Others

45.1% Offshore support

thereof: 22.3% Platform supply vessels 20.5% Anchor handlers 2.3% Oil well service vessels

Page 30 Investor Presentation __ October 2017 __ Offshore Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Land Transport Finance portfolio (30 Jun 2017: €1.5 bn)

Total lending volume by asset type Total lending volume by country risk

56.2% Europe 2.8% Australia 41.0% North America 91.5% Rail-based

thereof: 63.9% Freight cars 17.8% Locomotives 8.6% Regional passenger train sets 1.2% Passenger coaches

8.5% Rail-related

thereof: 8.5% Container chassis

Page 31 Investor Presentation __ October 2017 __ Land Transport Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Financial Institutions and Syndications portfolio (30 Jun 2017: €371.9 mn)

Total sell-down volume by business division

69.4% Aviation Finance 30.6% Shipping Finance

Page 32 Investor Presentation __ October 2017 __ Financial Institutions and Syndications 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

DVB Corporate Finance portfolio (30 Jun 2017)

Revenue by business division Revenue by products

42.0% Capital Markets 58.0% Advisory and Mergers & Acquisitions

Page 33

1.0% Land Transport Finance 64.0% Shipping Finance 35.0% Aviation Finance

Investor Presentation __ October 2017 __ DVB Corporate Finance 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Investment Management – Investment volume (30 Jun 2017)

Breakdown of the investment volume

73.0% AIM 27.0% SIIM SIIM: thereof: 23.9% SIIM/NFC Shipping Funds 1.8% Stephenson Capital 1.3% Container Funds

Page 34

SIIM shipping portfolio by asset type €291.0 mn

15.4% Other investments 54.5% Tankers

thereof: 18.3% LPG tanker 17.4% Chemical tankers 7.6% Product tankers 6.2% Crude oil tankers 5.0% LNG tankers

4.9% Car carriers 7.0% Bulk carriers 7.9% Containerships 10.3% Offshore vessels

AIM by asset type €889.0 mn

thereof: 14.8% Widebody 2.1% Engines 0.1% Narrowbody

3.2% Freighter widebody 29.4% Passenger widebody 50.2% Passenger narrowbody 0.2% Other 17.0% Disassembly

Investor Presentation __ October 2017 __ Investment Management 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

04/ DVB – Further information

36 Shareholder base 37 Board of Managing Directors 38 Staff 39 Imprint 40 Photo credits

Current shareholder base

Seite 36

100.00%

/ Squeeze-out resolution of the AGM / Expiration of the period for filing an action of avoidance / Registration into the Commercial Register

/ Delisting at the Frankfurt Stock Exchange – General Standard

/ Payment of the cash compensation per share to minority shareholders

22 June 2017 24 June 2017 17 August 2017 17 August 2017 22 August 2017

Investor Presentation __ October 2017 __ Structure 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Responsibilities of DVB’s Board of Managing Directors as of 1 January 2017

Client areas in business divisions Client areas at affiliates Product/service areas Ralf Bedranowsky

CEO and Chairman

• f the Board of

Managing Directors

David Goring-Thomas

Member of the Board of Managing Directors

Christian Hagemeyer

Member of the Board of Managing Directors

L.H. (Bart) Veldhuizen

Member of the Board of Managing Directors Page 37 Investor Presentation __ October 2017 __ Board of Managing Directors Corporate Finance Shipping Finance Offshore Finance Shipping and Intermodal Investment Management Information Technology DVB Capital Markets LLC Aviation Credit Credit and Asset Solution Group Land Transport Research Aviation Research Land Transport Credit Shipping and Offshore Credit Group Risk Management Aviation Finance Aviation Investment Management Land Transport Finance Aviation Financial Consultancy Financial Institutions and Syndications Group Treasury Transaction and Loan Services DVB Transport Finance Ltd Business Process Support Group Compliance Office Group Corporate Communications Group Audit Group Controlling Group Finance

ITF International Transport Finance Suisse AG LogPay Financial Services GmbH

Group Human Resources Group Legal Shipping and Offshore Research 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Nationalities in DVB (30 Jun 2017)

643 active employees DVB Bank Group 333 active employees Transport Finance/Investment Management

14.9% 33 other nationalities 42.6% German 11.7% Dutch 3.1% Norwegian 13.5% British 3.3% Greek 4.7% US-American 6.2% Singaporean 19.0% 22 other nationalities 17.7% Dutch 5.4% Greek 18.6% British 5.7% Norwegian 7.2% US-American 9.6% Singaporean 16.8% German

Page 38 Investor Presentation __ October 2017 __ Staff 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Imprint

Responsible for the content of this presentation and contact: Elisabeth Winter Head of Group Corporate Communications Managing Director Phone: +49 69 9750 4329 E-mail: elisabeth.winter@dvbbank.com DVB Bank SE Platz der Republik 6 60325 Frankfurt/Main, Germany info@dvbbank.com, www.dvbbank.com

For further information please visit www.dvbbank.com After scanning this QR with your smartphone, you will have direct access to our website.

Page 39 Investor Presentation __ October 2017 __ Imprint 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information

Lisa Boose-Kirwel Group Corporate Communications Manager Investor Relations Phone: +49 69 9750 4435 E-mail: lisa.boose-kirwel@dvbbank.com

Photo credits

Page 40 Investor Presentation __ October 2017 __ Photo credits Front Cover: Shipping Finance: Pages 1, 6: M.T. Maritime Management (USA) LLC, Southport, USA Aviation Finance: Pages 1, 6: Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands Offshore Finance Pages 1, 6: Volstad Management AS, Ålesund, Norway Land Transport Finance: Pages 1, 6: Wouter Radstake, DVB Bank SE, Frankfurt/Main, Germany 01/ DVB – Financials and outlook Page 4: iStock/SusanneB 02/ DVB – Business model Page 20: DZ BANK AG/DVB Bank SE 03/ DVB – Lending volume and portfolio data Page 26: Getty Images 04/ DVB – Further information Page 35: DVB Picture Archives Page 37 Ralf Bedranowsky, David Goring-Thomas, Christian Hagemeyer and L.H. (Bart) Veldhuizen: Andreas Fechner, Dusseldorf, Germany and DVB Bank SE, Frankfurt/Main, Germany Page 39: DVB Picture Archive 01/ Financials and outlook 02/ Business model 03/ Lending volume and portfolio data 04/ Further information