NORD/LB Group Presentation May 2019 1 Agenda. NORD/LB at a glance - - PowerPoint PPT Presentation

1

NORD/LB Group Presentation

May 2019

2

Agenda.

NORD/LB at a glance 3 Financials 9 Segments 18 Outlook 30 Appendix 38

3

Ownership structure and regional network.

NORD/LB at a glance 59,1% 5,6% 26,4% 5,3% 3,7% Saxony-Anhalt Savings Banks Holding Association Special Purpose Holding Association of the Mecklenburg-Western Pomerania Savings Banks State of Lower Saxony Lower Saxony Savings Banks and Giro Association State of Saxony-Anhalt

Ownership Structure1,2 Headquarters and ownership region

Hanover

Brunswick Magdeburg

1) Total differences are rounding differences 2) As at 31 December 2018

4

Represented in important financial and trade centres worldwide.

NORD/LB at a glance

London Amsterdam Paris Luxembourg Frankfurt Munich Nuernberg Bremen Hamburg Brunswick Magdeburg Hanover Düsseldorf Schwerin Warsaw New York

Head offices Hanover, Brunswick, Magdeburg Branches worldwide London, New York, Singapore, Shanghai German branches Bremen, Duesseldorf, Hamburg, Munich, Oldenburg, Schwerin, Stuttgart and approx. 100 branches of Braunschweigische Landessparkasse Subsidiaries and bank holdings Deutsche Hypothekenbank, NORD/LB Luxembourg Covered Bond Bank

Stuttgart

Addresses and more details: www.nordlb.com/nordlb/about-us/locations-worldwide

Shanghai Singapore Oldenburg

5

Our business segments 2018.

NORD/LB at a glance

Corporate Customers Corporate customer business Agricultural Banking Finance with public and cooperative housing associations Corporate Finance Leasing Private and Commercial Customers Private customer business Private Banking Commercial customer business Insurance services for private customers in cooperation with public insurances in Lower Saxony Energy and Infrastructure Customers Renewable energy finance Infrastructure finance Real Estate Banking Customers Commercial real estate finance International social care property finance Markets Business with Institutional customers Savings banks/ financial institutions Public-sector customers Ship Customers Ship finance Container vessels Bulker Tanker Multi purpose vessels Offshore Oil & Gas Cruise ships / Ferries Aircraft Customers Aircraft finance Narrow-/Wide-bodies Freighters Regional Jets Turboprops Helicopter Spare Engines Finance/Operating Lease Savings Bank Network Customers Savings Bank Network/ extended network Corporate customers/ syndication loans Municipal customers

6

Holding structure and brands1,2.

NORD/LB at a glance

100%3 100%3

• Private Banking
• Private and Commercial Customers
• Corporate Customers
• Markets
• Ship, Aircraft, Energy/Infrastructure, Real Estate Banking
• Leasing
• Savings Bank Network

Private and commercial customers

• Loans
• Financial Markets & Sales

Commercial real estate finance

4

1) As at 31 December 2018 2) For more information about subsidiaries and affiliated companies please consult https://www.nordlb.com/nordlb/about-us/investments/ or our Group Annual Reports 2018, note (80) 3) NORD/LB ensures that the companies mentioned in the Group Annual Report 2018, Note (73) are able to meet their obligations 4) Incorporated under public law with partial legal capacity

7

NORD/LB Credit Ratings Senior unsecured preferred debt Baa2 2 A- 4 A 5 Deposits (long-term/short-term) Baa2 2/P-2 A-/F1 4 A5/R-1 (low) 5 Counterparty Risk Rating/Derivate counterparty rating (long-term/short-term) Baa2(cr) 2/P-2(cr) A-(dcr) 4 /-

• Senior unsecured non-preferred debt

Ba1 2 A- 4 A (low) 5 Subordinate/Tier 2 B1 2 B+ 4 BBB (high) Intrinsic financial strength 1 ba3 2 f BBB (low) 5 Tier 1 Caa1 (hyb) 3

• Public-Sector / Mortgage / Aircraft Pfandbriefe

Aa1 2 / Aa1 2 / A3 2

• Our ratings.

NORD/LB at a glance

1) Adjusted Baseline Credit Assessment / Viability Rating / Intrinsic Assessment 4) Rating Watch Negative 7) March 2019 2) Review for Upgrade 5) Rating Under Review - Negative Implications 3) Review Direction Uncertain 6) April 2018

NORD/LB Nachhaltigkeits-Ratings Corporate Rating / Sustainability Rating C+ Prime 62 of 100 points Positive B Public-Sector Pfandbriefe

• Positive BBB

Mortgage Pfandbriefe

• Positive BB

Ship Pfandbriefe

• Positive B

6 7 7

8

Agenda.

NORD/LB at a glance 3 Financials 9 Segments 18 Outlook 30 Appendix 38

9

Positive first quarter result 20191.

Financials

1) Extract from financial statements 2) Some previous year figures were adjusted

in €m Loan and securities portfolios decreased 258 353 Net interest income Net reversals in Energy & Infrastructure, Ships, Private & Comm. Customers and Savings Banks Network 38 28 Risk provisioning Personnel expenses (€-6m) and advisory expenses (€-15m) dropped 265 291 Administrative expenses 75 68 Earnings before reorganisation and taxes 54 43 Consolidated profit

Explanation 1 Jan – 31 Mar 20182 1 Jan – 31 Mar 2019

• 27

+36

• 9

+10 +26

Change in %

Only reorganisation expenses 10

• Restructuring and

reorganisation expenses

• Increase due to one-off interim-

servicing fee for sale of Big Ben portfolio 34 17 Net commission income +100

10

Key financial figures.

Financials

1) Some previous year figures were adjusted 2) NPL ratio after sale of Big Ben: approx. 2.6 percent (figures as at 31 March 2019 excluding Big Ben exposure (€2.55bn))

Focus on core business areas, reduction of interbank business Group total assets Asset reduction with low RWA RWA Interest-driven adjustment of revaluation reserve; capital strengthening measures initiated CET1 ratio Target is an NPL ratio below 2 per cent2 NPL ratio Requirement of 100 per cent clearly exceeded; distance to Illiquidity: 224 days LCR Target is a leverage ratio

• f above 4 per cent

Leverage Ratio

Explanation 31 Dec 2018¹ 31 Mar 2019 Change in %

Large buffer to regulatory requirement

• f 9.13 per cent

MREL €148.2bn €154.0bn €45.3bn €45.5bn 6.7 % 6.8 % 4.1 % 4.0 % 150 % 150 % 2.1 % 2.1 %

• 4
• 1

+2

• 20.37 %

19.89 %

11

Common Equity Tier 1 ratio

Profitable 1Q 2019 for NORD/LB.

Capital ratio of 6.7 per cent (CET1) as at 31 March 2019 significantly below regulatory requirements (SREP 10.57 per cent); countermeasures already initiated and discussed with supervisory authorities Group NPL ratio almost unchanged at 4.1 per cent (31 March 2019); reduction of non-performing ship financing (NPL) continues: a portfolio of ship NPLs in the amount of € 2.6 billion was sold in the first quarter

• f 2019, but booked at the beginning of April. Therefore, the results have not yet been included in the

figures as at 31 March 2019 Programme continued as planned; administrative expenses fell by 9 per cent; balance sheet total further reduced to € 148.2 billion (€ 154.0 billion as at 31 December 2018). New strategy programme ("NORD/LB 2024") bundles efficiency enhancement and capital-strengthening programmes and implements future business model adjustments

De-risking of loan portfolio Transformation Programme

Financials

1) Some previous year figures were adjusted

Consolidated earnings before restructuring and taxes amounted to € 75 million as at 31 March 2019. Consolidated profit after restructuring and taxes amounted to € 54 million as at 31 March 2019

Consolidated profit

12

NORD/LB starts the new year with a profit.

Financials

1) Some previous year figures were adjusted

Income statement (in €m)

1 Jan - 31 Mar 2019 1 Jan - 31 Mar 20181 Change in %

Net interest income 258 353

• 27

Net commission income 34 17 +100 Profit/loss from financial assets at fair value (incl. Hedge Accounting) 43 3 >100 Risk provisioning 38 28 +36 Disposal profit/loss from financial assets not measured at fair value

• 2
• 6
• 67

Profit/loss from shares in companies

• 3
• 100

Profit/loss from investments accounted for using the equity method 10 5 +100 Administrative expenses (-) 265 291

• 9

Other operating profit/loss

• 41
• 38

+8 Earnings before reorganisation, restructuring and taxes 75 68 +10 Restructuring result and reorganisation expenses 10

• Earnings before taxes

65 68

• 4

Income taxes (-) 11 25

• 56

Consolidated profit/loss 54 43 +26 Net interest income: Loan and securities portfolios decreased Net commission income: Increase due to receipt of an interim servicing fee of for the Big Ben portfolio Fair-value result: Lower interest-rate levels and tighter credit spreads let profits rise Risk provisioning: Net reversals in Energy & Infrastructure Customers, Ship Customers, Private & Commercial Customers and Savings Banks Network Disposal result includes net gains from the disposal of securities and asset/liability loans Administrative expenses: Decline in personnel expenses (€ -6 million) and consulting expenses (€ -15 million) Other operating result influenced in particular by the 2019 annual contribution to the bank levy of € 54 million Restructuring result from the transformation programme due to restructuring provisions, not yet incurred in the first quarter

• f 2019

Reorganisation expense is a one-time expense for future-

• riented applications (consulting services)

13

Targeted reduction of total assets.

Financials

1) Some previous year figures were adjusted

Balance sheet total further reduced, among other things due to declining loans and advances to banks and liabilities to banks and customers Financial assets at fair value through other comprehensive income: decrease due to changes in assets and valuations as part

• f liquidity management

Financial assets at amortised cost include the major parts of the traditional lending and loan business as well as parts of the securities portfolio, in particular the decline in interbank business (€-3.7bn) Financial liabilities at amortised cost include liabilities to banks and customers, debt securities issued, covered bonds and money market papers; decline in deposits from banks (€ -3.2bn), deposits from customers (€ -2.5bn) and repayments/maturities

• f own debt securities (€ -1.7bn)

Balance-sheet equity hardly changed: Positive quarterly result and opposing effects in the revaluation reserve almost offset each other

Balance sheet (in €m) 31 Mar 2019 31 Dec 20181

Change (in %) Total assets 148,188 154,012

• 4

Financial assets at fair value through other comprehensive income 20,185 20,548

• 2

Financial assets at amortised cost 109,682 114,041

• 4
• f which: Loans and

advances to banks 21,032 24,497

• 14
• f which: Loans and

advances to customers 84,206 85,168

• 1

Financial liabilities at amortised cost 126,078 133,433

• 6
• f which: Liabilities to banks

40,620 43,856

• 7
• f which: Other liabilities

56,050 58,506

• 4
• f which: Securitised

liabilities 28,666 30,328

• 5

Equity (balance sheet) 3,408 3,404 +0

14 68.5 69.2 63.7 59.9 46.8 45.5 45.3

200.8 197.6 181.0 174.7 163.8 154.0 148.2 2013 2014 2015 2016 2017 2018 31 Mar 19 2023

Capital ratios fell temporarily due to annual loss 2018. Strategic reduction of total assets in the long run.

Financials

1) CET1 (Common Equity Tier 1) 2) 2010 to 2013: SolVV/HGB, since 2014 CRR/Basel III (phase-in) 3) Due to the adjustment of regulatory data as at 31 December 2017, the prior-year figures were adjusted accordingly

11.8% 10.7% 13.1% 11.3% 12.4% 6.8% 6.7% 14.3% 13.2% 16.7% 16.3% 18.1 12.7% 12.7% 2013 2014 2015 2016 2017 2018 31 Mar 19 2019

Risk-weighted assets Total assets Total capital ratio CET11

Equity ratios (CET1)1,2,3

in per cent

Total assets and RWA³

in €bn

̴14% ̴20%

SREP minimum requirements (P2R) CET11 since 1 Jan 2018 9.60 % since 1 Mar 2019 10.57 % Total capital ratio since 1 Jan 2018 13.10 % since 1 Mar 2019 14.07 % Ratios LCR ratio 31 Mar 2019 150 % 31 Dec 2018 150 % Leverage ratio 31 Mar 2019 2.1 % 31 Dec 2018 2.1 %

95 42

• 26%
• 34%

15

MREL figures of NORD/LB Group.

Financials

1) Regulatory capital (Own Funds) transitional; including issued AT1 and Tier 2 capital from subsidiaries 2) Subject to approval of approx. €5n in promissory notes by the supervisory authority

CET11 €3.1bn AT1 / T2 €2.7bn Plain-vanilla senior liabilities2 €24.1bn MREL available

Minimum Requirement of Eligible Liabilities and Own Funds (MREL) MREL ratio: 20,37 per cent TLOF (Total Liabilities & Own Funds): €146.7bn SRB MREL minimum quota requirement: 9.13 per cent €29.9bn

as at 31 March 2019

1

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Overall high portfolio quality: 80 percent in the highest category.

Financials

1) Total differences are rounding differences 2) Restatement of figures, see Interim Report as at 30 June 2015, page 28 and Interim Report as at 30 September 2017, page 32 3) Net amount after fair-value deduction 146.3 147.6 143.9 142.6 135.6 13.9 16.6 14.4 15.8 14.9 9.9 8.7 6.1 5.8 6.2 7.7 5.3 5.4 4.0 4.3 3.2 1.8 5.6 1.2 1.1 3.7 4.1 2.3 1.1 1.3 9.1 10.7 8.8 7.1 6.9

2015 2016² 2017 2018 31.3.2019

default (=NPL) ³ very high risk high risk increased risk reasonable/satisfactory good/satisfactory very good to good

212.7 211.0 181.4 177.6 170.2

in €bn

Total exposure1

4.7% 5.5% 4.8% 4.0% 4.1% in %

NPL ratio

17

Agenda.

NORD/LB at a glance 3 Financials 9 Segments 18 Outlook 30 Appendix 38

18 21 36 5 2 26 33 13 29

All business segments are profitable.

Segments

Private and Commercial Customers Corporate Customers Energy- and Infrastructure Customers Real Estate Banking Customers Aircraft Customers Ship Customers/ Maritime Industries Markets

Earnings before reorganisation and taxes1,2

1 Jan – 31 Mar 2019 €165m³

Savings Bank Network Customers

All business segments are profitable and generate segment profits after administration costs and risk provisions of €165m in total

• Incl. Group Management/Other and

reconciliation, earnings before reorganisation and taxes amounted to €75 million The cost-income ratio as at 31 March 2019 was 87.8 per cent, the RoRaC was 3.8 per cent

1) Total differences are rounding differences 3) Without Group Management/Other and Reconciliations 2) As a percentage of segment profit (€165m)

13% 22% 3% 1% 16% 20% 8% 17%

19 56 95 36 14 44 13 23 49

Balanced earnings diversification.

Segments

Earnings1,2,3

1 Jan – 31 Mar 2019 €330m

Overall solid profitability in the core business areas Earnings from ship customers: Increase due to receipt of an interim servicing fee for a sale of part of the shipping NPL portfolio

1) Net interest and commission income as well as trading and valuation results 3) Without reconciliations 2) Total differences are rounding differences 4) As a percentage of segment earnings(€330m)

Private and Commercial Customers Corporate Customers Energy- and Infrastructure Customers Real Estate Banking Customers Aircraft Customers Ship Customers/ Maritime Industries Markets Savings Bank Network Customers 17%4 29%4 11%4 4%4 13%4 4%4 7%4 15%4

20 6

• 13

4 6 36

• 1
• 4

4

Risk provisioning inconspicuous.

Segments

Group risk provisions by segments1

Additions in € m +€38m

The Group provision for possible loan losses was reversed and amounted to € 38 million as at 31 March 2019 The segments Private and Business Customers, Savings Bank Network Customers, Energy and Infrastructure, Ships and Other recorded reversals in risk provisions in the first quarter

Private and Commercial Customers Corporate Customers Energy- and Infrastructure Customers Real Estate Banking Customers Aircraft Customers Ship Customers/ Maritime Industries Markets Savings Bank Network Customers Group Management/ Others, Reconciliations

1) Total differences are rounding differences

21 Other 14% Public administration, defence, social insurance 11% Land, housing 21% Other service industry 12% Private households 42%

Private and Commercial Customers. Deeply rooted in the home region.

Segments

1) Total differences are rounding differences . The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations

as at 31 Mar 2019

Exposure by industry1

Exposure at default: €7.9bn

• Advice and service in nearly 100 locations as well as online and

by phone via BLSK.direkt

• We offer customer-oriented consulting and selected products

and services for private and commercial customers within the region of Braunschweigische Landessparkasse, in Hanover, in Hamburg as well as in Bremen and Oldenburg

• NORD/LB and Braunschweigische Landessparkasse offer

inheritance optimisation, trust management, portfolio management and individual asset management for private banking clients

• Successful performance with partners like Öffentliche

Versicherung Braunschweig, LBS Nord (building society), Deka, Deutsche Leasing, S-Kreditpartner and the Versicherungsgruppe Hannover (insurance companies) €m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 56 58 Expenses 41 41 Operative earnings 15 17 Loan loss provisions 6

• 1

Earnings before taxes 21 16

22

Corporate Customers. Profitable, stable and well diversified portfolio.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations

Manufacturing industry 16% Energy, water and mining 11% Construction 2% Trade, maintenance and repairs 10% Agriculture, forestry and fishing 8% Transport/ communications 6% Financing institutes/insurance companies 12% Service industries/other 35% Exposure at default: €24.7bn

• Stable business development with existing and new customers in

the corporate customer segment

• Tailor-made financial solutions for SMEs – partly in close

cooperation with the Savings Banks

• Strong position and high competence in acquisition finance

business confirmed

• Elevated market position as an important financer in the field of

agricultural banking

• Successful marketing of asset and structuring expertise in public

housing segment

• Successful strategic positioning with customers together with

corporate finance (e.g. asset-liability management, capital- market financing, working-capital management and factoring)

• For over 25 years we are one of the leading lenders for leasing

companies

• Since the 1980’s we are one of the leading player in social

housing

as at 31 Mar 2019

Exposure by industry1

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 95 103 Expenses 47 35 Operative earnings 49 68 Loan loss provisions

• 13

2 Earnings before taxes 36 70

23

• Markets. Frequent issuer and arranger of successful benchmarks.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations 2) NORD/LB AöR

• Issuer of Pfandbriefe including Green Bonds (public-sector,

mortgage, ship and aircraft), Lettres de Gage (covered bonds according to Luxemburg law), bearer bonds, promissory notes, money market securities

• Successfully positioned as lead manager/arranger of bond issues,

particularly covered bonds

• Comprehensive, customised range of money and capital market

products in private placement segment

• International funding programmes2:

€25bn EMTN Programme, €10bn CP Programme, €4bn Negotiable European CP Programme, $3bn CP Programme

• As at 31 March 2019: €25.5bn ECB eligible securities concerning

NORD/LB Group, thereof €19.4bn from NORD/LB AöR

Own benchmark issues and syndicated issues 2019

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 36 52 Expenses 30 27 Operative earnings 5 25 Loan loss provisions Earnings before taxes 5 25

EUR 500,000,000 0.250% Covered Bond Jan 2019 – Jan 2024 Joint Lead-Manager EUR 750,000,000 0.875% Covered Bonds Jan 2019 – Jan 2029 Joint Lead-Manager EUR 625,000,000 0.750% Mortgage Covered Bond March 2019 – March 2029 Joint Lead-Manager EUR 1,000,000,000 0.125% March 2019 – March 2025 Joint Lead-Manager EUR 500,000,000 0.375% Lettres de Gage publiques March 2019 – March 2024 Joint Lead-Manager EUR 500.000.000 0.625% Covered Bonds March 2019 – March 2029 Joint Lead Manager Lower Saxony EUR 750,000,000 0.500% Mortgage Covered Bonds June 2018 – June 2026 (Increase May 2019) Joint Lead-Manager Santander UK EUR 1,000,000,000 0.100% Covered Bond May 2019 – May 2024 Joint Lead-Manager EUR 750,000,000 0.500% Green Senior Preferred April 2019 – April 2026 Joint Lead-Manager

24 Savings Banks Network/extended network 39% Corporate customers/ syndication loans 14% Municipal customers 47%

Savings Banks Network Customers. Increasing cooperation in strategic market activities.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations

Exposure at default €19.9bn

Since 2018 Savings Banks Network Customers business is shown as a separate business segment. In this context, parts of the Markets and Corporate Clients segments were transferred Consultancy and support of savings banks in Lower Saxony, Saxony-Anhalt and Mecklenburg-Western Pomerania as well as savings banks in Schleswig-Holstein in its girocentre function including private banking products Expanding the syndication loan business with savings banks as well as the corporate customer business in its network Focus on municipalities in the network regions/owner states and selective product-oriented supra-regional business Expanding the syndication activities with savings bank network and providing of alternative financial products for the balance sheet management of savings banks Transfer service for KfW loans within Savings Bank Network and developing of digitisation

as at 31 Mar 2019

Exposure by industry1

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 14 16 Expenses 16 11 Operative earnings

• 2

5 Loan loss provisions 4 Earnings before taxes 2 5

25

Expansion and strengthening of our market position through long-term expertise and customised structuring in renewable energy finance; our focus is on energy from wind and solar, leading financer in European core markets Germany, France, Ireland and UK. Targeted expansion and maintenance of customer relations in North America and Asia in the energy sector Concentration on social infrastructure projects in the fields of education, accommodation, blue light and transportation; use of existing structuring expertise in the broadband segment. High expertise in Public Finance Initiative (PFI)/public-private- partnership business

Energy- and Infrastructure Customers. Stability and expansion in growth industries.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations

Financial Services 2% Gas / biogas 3% Trade and Services 14% Media and IT 2% Public Sector 3% Solar energy 8% Other energy 7% Supply and disposal 4% Manufacturing industry 1% Transportation 6% Wind (onshore) 49% Wind

• ffshore 1%

Exposure at default: €16.1.bn as at 31 Mar 2019

Exposure by industry1

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 44 61 Expenses 24 23 Operative earnings 20 38 Loan loss provisions 6 2 Earnings before taxes 26 40

26

Ship Customers / Maritime Industries Customers.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations 2) Further information on page 37

as at 31 Mar 2019

Shipping Portfolio1,2

Exposure at default: €10.1bn

• The business segment Shipping/Maritime Industries is classified

into two groups:

• The business segment Maritime Industries is focused on ECA-

covered financing as well as short-term, mid-term and long- term financing of maritime corporates (secured and unsecured, but then only in case of a high creditworthiness) – conditionally cash-flow- and asset-based shipping loans as

• well. As a result of the current decisions about the new

business case, there won’t be any new deal

• The business segment Shipping Portfolio Optimization (SPO)

centralizes the expertise and processes of restructuring and management of defaulted and potential problem shipping- loans

Container ships; 27% Bulk carrier; 17% Other; 5% Offshore; 4% Cruise ships/ ferries; 5% MPP Heavy Lift; 9% MPP General Cargo; 8% Chemical- tankers; 3% LPG-tankers; 3% LNG-tankers; 1% Product- tankers; 11% Crude oil tankers; 1% Corporates; 6%

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 13 54 Expenses 15 20 Operative earnings

• 3

34 Loan loss provisions 36 8 Earnings before taxes 33 42

27 18% 46% 33% 3% Construction year 2008 and earlier Construction year 2009 - 2013 Construction year 2014 - 2018 New delivery since 2019

Aircraft Customers. High-quality portfolio. Well diversified.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations

Aircraft portfolio with 513 aircrafts (and other airplanes in warehouse facilities), six helicopters and 29 (spare-) engine is well diversified Considering only long-standing and fungible assets (aircrafts , helicopters and engines) Exposure has very high collateral coverage (approx. 95 per cent) Average age of roughly six years Mostly warehouse and operating lease structures For nearly 25 years established as a market leader in aircraft finance: broad range of commercial and covered financing of widebodies, narrowbodies, regional jets and helicopters Conservative risk approach in line with our financing principles and high risk awareness as well as ensuring appropriate redemption payments/finance structures Focus on reliable and well-known partners

Narrowbodies 41% Widebodies 24% Ultra Large Aircraft 6% Regional Jets 7% Freighter 16% Turboprop 6% as at 31 Mar 2019

By type of aircraft and year of manufacture1

Exposure at default: €5.1bn

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 23 26 Expenses 9 8 Operative earnings 14 18 Loan loss provisions

• 1

4 Earnings before taxes 13 22

28

Real Estate Banking Customers. Focus on commercial real estate in Germany.

Segments

1) Total differences are rounding differences. The figures as at 31 March 2018 and 31 March 2019 are not comparable due to different overhead cost allocations

Deutsche Hypothekenbank is the competence centre for commercial real estate (CRE) within NORD/LB Group Tailored financial solutions and individual, high quality customer consultation Emphasis is on financing of office buildings, shopping malls, hotels, logistics facilities and multi-story residential properties in preferred urban centres with good tenant structure and above average cash flow Activities are focussed on Europe especially on Germany and financings of commercial real estate in UK, France, Benelux, Spain and Poland Successful strategic cooperation with pension funds as financing partners for high-volume projects

Spain 1% France 7% USA 1% UK 11% Benelux 17% Germany 60% Other 3% as at 31 Mar 2019

By country1

Exposure at default: €15.6bn

€m1 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2018 Earnings 49 47 Expenses 16 15 Operative earnings 32 32 Loan loss provisions

• 4

7 Earnings before taxes 29 39

29

Agenda.

NORD/LB at a glance 3 Financials 9 Segments 18 Outlook 30 Appendix 38

30 Outlook

Achieved success by transformation programme One Bank.

The results of One Bank are an important and valuable basis for the realignment of NORD/LB. Savings potentials of €275m were achieved. One Bank has identified 1,250 full-time equivalents for the necessary staff reductions, of which 230 have already been reduced (until year-end 2018) Since 2011, the shipping loan portfolio has been massively reduced by a total of over €9bn. This corresponds to a reduction of 860 financed ships. The Big Ben transaction also created the basis for the reduction of a further €2.6bn, which was carried out at the beginning of the second quarter of 2019 The former Bremer Landesbank is fully integrated. Customers and employees settled well at NORD/LB and most of the data has already been transferred With leaner loan processes in wholesale and retail business, we are creating the conditions for being able to operate our customer lending business efficiently and competitively tomorrow as well. Supplemented by process optimisations in staff and operating areas, profitability is increased in the long term. The new NORD/LB 2024 programme will bundle all this preparatory work and coordinate and advance the construction of the new NORD/LB

31

Administrative expenses.

Outlook

Cost savings One Bank

in €m

Target administrative expenses NORD/LB 2024

in €m

The new NORD/LB 2024 transformation programme continues One Bank's successful course

200 96 179 Target 2020 End of 2020; through identified measures Target 2024 NORD/LB 2024 (still to be backed by measures) One Bank (already supported by measures) 2018 1.011 625 275

• 179
• 207

Savings already realized from One Bank +37.5%

• 38%

32

Staff reduction.

Outlook

1) Including portfolio reduction and reduction of market units due to reduction of the asset class and redimensioning of the Bank and optimisation of processes in all units 2) Already reduced before 31 Dec 2018

A further reduction beyond One Bank is necessary for the NORD/LB 2024 target

230²

NORD/LB 2024

Target 2024 in full-time equivalents NORD/LB 2024¹ One Bank 2020 2018 ~5,670 1,020 ~1,650-1,850 2,800-3,000 1.250

33 Outlook

Outlook for 2019 and 2020.

Markets and competition conditions remain challenging in 2019, especially in the field of interest-rate

• levels. In addition, regulatory aspects are demanding: Capital requirements for system-relevant banks

will increase further The downsizing as well as the profound restructuring will tie up resources and cause high expenses. Therefore, NORD/LB expects high restructuring expenses for full year 2019. This is an investment in a new sustainable business model of the bank Regarding its positive operating business NORD/LB plans a profit before restructuring and taxes for full year 2019, however, we anticipate that the annual result after restructuring and taxes will be negative again The goal of the comprehensive new start is to return to profitability and generate profits again by 2020 at the latest

34

Covering the capital needs by owners and DSGV1.

Outlook

NORD/LB Group capital needs and coverage

in €m

Restructuring

~ 700

Capital-relieving measures

800

Reduction of NPL-Portfolio (Risk provisions + FV effects) (incl. Big-Ben- transaction)

~ 2,000

Capital strengthening

~ 800

Capital-relieving measures

800

Cash injection

2,835

Savings Banks Finance Group

1,135

State of Lower Saxony

~ 1.500 Measures to meet the capital needs(€3.64bn) Contributions from owners and DSGV Composition of capital needs (€3.5bn)

State SA

~ 200

1) NORD/LB has agreed a capital boost and the Bank's new business model with the former owners and the Savings Bank Finance Group and submitted a corresponding capital plan to the supervisory authority. The plan is is subject to an EU resolution

35

NewNORD/LB

Outlook

Corporate Customers Private and Commercial Customers/ Savings Banks Network Special Finance Markets Real Estate Banking Customers

New Norddeutsche Landesbank: Targets for 20241.

̴95

€bn

Total assets Total assets

̴42

€bn

Risk- weighted assets Risk- weighted assets

>14

per cent

CET1 ratio CET1 ratio

~50.

per cent

Cost-income- ratio Cost-income- ratio

̴1.25

€bn

Earnings Earnings

̴625

€m

Costs Costs

2,800-

members

2,800- 3,000

Staff members

Number

• f staff

Number

• f staff

>8

per cent

Return-on- equity Return-on- equity

1) NORD/LB has agreed a capital boost and the Bank's new business model with the former owners and the Savings Bank Finance Group and submitted a corresponding capital plan to the supervisory authority. The plan is is subject to an EU resolution

36

Financial calendar.

Outlook

Figures as at 31 March 2019 28 May 2019 Interim Report as at 30 June 2019 End of August 2019 Figures as at 30 September 2019 End of November 2019

37

Agenda.

NORD/LB at a glance 3 Financials 9 Segments 18 Outlook 30 Appendix 38

38

Digression: NORD/LB AöR (single entity) - earnings under German GAAP (HGB).

Appendix P/L figures (in €m) 1 Jan – 31 Dec 20181 1 Jan – 31 Dec 20171 Annual loss (2017: Annual profit)

• 2,436

85 Earnings brought forward from the previous year 85 Loss/Profit

• 2,351

85 Loss compensation through release of capital reserves (according to Owner's decision of 30 April 2019) 2,351

• Loss
• NORD/LB AöR closed 2018 with a net loss of € -2.4bn (in accordance with the German Commercial Code)

As a result − No profit participation for 2018 is attributable to all silent participations at NORD/LB AöR − neither the coupon of the capital notes issued by the Fürstenberg Capital companies nor the AT1 capital instrument issued by the former Bremer Landesbank will be paid for 2018 − all liable capital shares of the bank participated in the balance sheet loss in the same proportion. For this reason, the book values

• f the silent participations were written down by around 43 per cent as at 31 December 2018. A corresponding deduction was

made for the capital notes issued by the Fürstenberg Capital companies − The balance sheet loss as at 31 December 2018 was neutralised by a partial release of the capital reserves in accordance with the resolution of the Owners' Meeting of 30 April 2019; there will therefore be no loss carried forward from 2018 to the 2019 annual results

1) Second last and last position as at 1 May 2019

Balance Sheet (in €m) 30 Apr 2019 31 Dec 2018 Subscribed capital 1,869 1,869 Capital reserves 974 3,324 Retained earnings 531 531 Loss 2,351 Equity 3,373 3,373

39 171 95 194 142 67 15 316 432 409 219 57 23 93 50 40 100 175 24 50 100 150 200 250 300 350 400 450 500 2014 2015 2016 2017 2018 2019 YTD Anzahl der Schiffe Container Bulker Tanker 200 400 600 800 1.000 1.200 1.400 2016 2017 2018 2019 2020 2021 Anzahl Schiffe Container Bulker Tanker Container abgl. Bulker abgl. Tanker abgl.

Industry outlook ships: Deliveries on schedule, but increased demolitions.

Appendix

Delivery schedule Demolitions1

Deliveries by bulkers and tankers ordered in 2017 and 2018. Replacement effects from IMO 20202 are expected from 2020 onwards Increased demolitions due to changed regulatory conditions

• No. of vessels
• No. of vessels

1) As at May 2019 2) IMO - International Maritime Organization . "IMO 2020": generally the binding guideline which prescribes the reduction of the sulphur content in ship fuel to 0.5%. It will apply from 1 January 2020.

40 200.000 400.000 600.000 800.000 1.000.000 1.200.000 1.400.000 1.600.000 1.800.000 50 100 150 200 250 300 350 400 450 TEU Anzahl Schiffe ohne Beschäftigung 500-999 TEU 1000-1999 TEU 2000-2999 TEU 3000-3999 TEU 5100-7499 TEU 7500+ TEU total TEU (RHS)

Industry outlook ships: traditional dip in demand in the first quarter of 2019 due to Chinese New Year.

Appendix

Idle Fleet Harpex Baltic Dry

Number of ships reduced again to 2.1 per cent

• f total fleet rsp. 461,475 TEU at the end of

first quarter 2019 Charter market with recovery in the container sector Bulker sector still volatile, characterized by seasonal effects volatile

• No. of vessels

200 300 400 500 600 700 800 500 1.000 1.500 2.000 2.500

41

Current market level: weak

Beginning of the year influenced by Chinese New Year.

Appendix

Source: NORD/LB sector research based on charter rates and market values (new constructions and second hand) as at March 2019

Current market level: high Current market level: weak Current market level: medium Current market level: medium Expected market development: up to 12 mths / 12-36 mths unchanged / slight increase Current market level: medium Current market level: low

Neo-/Postpanamax

Containerships >(6-14,9/ >15K TEU

Expected market development: up to12 mths / 12-36 mths unchanged / slight increase Expected market development: up to12 mths / 12-36 mths unchanged / slight increase Expected market development: up to 12 mths / 12-36 mths unchanged / slight increase Expected market development: up to12 mths / 12-36 mths slight increase / slight increase Current market level: low

Cruise ships and ferries

Current market level: low Current market level: medium Expected market development: up to12 mths / 12-36 mths unchanged / increase Expected market development: up to 12 mths / 12-36 mths increase / slight increase

Feeder

Containerships < 3K TEU

Intermediate

Containerships 3-5,9K TEU

Multi-Purpose

Heavy Lift & General Cargo

Crude oil tankers Product tankers Other tankers Off shore Bulker

Expected market development: up to12 mths / 12-36 mths unchanged / unchanged Expected market development: up to12 mths / 12-36 mths unchanged / slight increase Expected market development: up to 12 mths / 12-36 mths unchanged / slight increase

42

19.5 18.0 17.7 16.6 19.01 16.91 12.1 10.3 10.1 1,850 1,768 1,698 1,544 1,481 1,363 1,115 1,047 990 200 400 600 800 1.000 1.200 1.400 1.600 1.800 5 10 15 20 25 30 2011 2012 2013 2014 2015 2016 2017 2018 31 Mar 19

Run down of shipping loan portfolio

Ship Customers: Portfolio will be continuously run down.

Appendix

Since 2011, the shipping loan portfolio has been massively reduced by more than € 9 billion in total. This corresponds to a reduction of 860 financed ships The Big Ben transaction also created the basis for a further €2.6 billion reduction, which was carried out at the beginning of the second quarter of 2019 The reduction of the remaining portfolio (€7.5bn) will be consistently continued in fiscal 2019

Number of ships financed Exposure (in €bn) Big Ben (2Q19) 2.6 7.5 1) The increased exposure values in 2015 and 2016 were attributable to exchange rate effects. The portfolio reduction was continued, as the ongoing decline in the number of financed ships shows

43

1.7

• 0.2

17.3 7.7 7.4 2.6 2.7

Transformation and reduction of ship financings in 1Q 2019.

Appendix

1) Total differences are rounding differences 2) USD development (approx. €192m)

NORD/LB Group – exposure reduction in the first quarter1

in €bn

10.1

Already negotiated reductions of loans

• Incl. €2.6bn Big Ben

10.3 19.0

• Reduction by €353m in the first quarter 2018
• Portfolio reduction is mainly driven by extraordinary repayments, sales and placements
• Transaction Big Ben is going to reduce the portfolio by €2.6bn at the beginning of April
• As at 31 March 2019 the NPL portfolio at €7.3bn. We plan to reduce the NPL portfolio to below €3bn by the end of 2019 and to

almost zero by the end of 2021

EaD shipping loans Dec 2015 EaD shipping loans Mar 2019 Reductions2 EaD shipping loans Dec 2018

44 31 Dec 15 31 Dec 16 31 Dec 17 31 Dec 18 31 Mar 19 Rating class 1-10 Rating class 11-15 Rating class 16-18

Shipping portfolio.

Appendix

1) Total differences are rounding differences

Total shipping portfolio (performing and non- performing) by rating1

€9.4bn €3.8bn €1.7bn €8.2bn €3.6bn €2.2bn

€16.9bn €12.1bn

€0.7bn €7.5bn €2.2bn

€10.3bn Container ships; 31% Bulk carrier; 19% Other; 2% Offshore; 3% Cruise ships/ferries; 1% MPP Heavy Lift; 13% MPP General Cargo; 10% Chemical tankers; 4% LPG tankers; 2% Product tankers; 10% Crude oil tankers; 0% Corporates; 5% as at 31 Mar 2019

NPL exposure1

€7.3bn

€0.7bn €7.3bn €2.2bn

€10.1bn

€7.3bn €4.5bn €7.1bn

€19.0bn

45 2,369 4,320 3,176 345 151 131 2015 2016 2017 2018 31 Mar 19

Portfolio loan loss provisions

Ship Customers. Core risk coverage remain high1.

Appendix

1) Total differences are rounding differences 2) Core Risk Coverage: (market values of ships (€4.2bn) + loan loss provisions (€4.8bn)) / NPL-EaD (€7.3bn) 3) Loan loss provisions and fair-value discount for defaulted loans only (IFRS 9)

in €m

2,714 4,471 3,307 4,857

Loan loss provisions for shipping (balance sheet)

3

NPL-Portfolio

€bn

7.0 9.4 8.2 7.5 7.3 77% 84% 88% 123% 124% 0% 20% 40% 60% 80% 100% 120% 140% 5 10 15 20 25 30

2015 2016 2017 2018 31 Mar 19

NPL-Exposure Core risk coverage 2

Big Ben 2.6 4.7

4,811

3

66 per cent of the total NPL exposure (€7.3bn) is covered by loan loss provisions (€4.8bn); even after the disposal of the Big Ben portfolio, the coverage ratio remains at 66 per cent The market values may fall by around 37 per cent and there would still be a core risk coverage of 100 per cent Core risk coverage after the disposal of the Big Ben portfolio: 120 per cent

4.7

46

NORD/LB exposure by sector and region.

Appendix Germany 67% Euro countries (without Germany) 15% Other Europe 9% North America 5% Middle and South America 1% Middle East/ Africa 0% Asia/ Australia 3%

NORD/LB exposure by region

as at 31 Dec 2018

NORD/LB assets by segments

€154.0bn as at 31 Dec 2018 €177.6bn Private and Commercial Customers 4% Corporate Customers 15% Markets 12% Savings Banks and Regional Customers 13% Energy and Infrastructure Customers 10% Ship Cus- tomers/ Maritime Industries 7% Aircraft Cus- tomers 3% Real Estate Banking Cus- tomers 9% Others 27%

47

Break down of securitised liabilities.

Appendix

1) Total differences are rounding differences 2) Some previous year figures were adjusted

in €m1 31 Mar 2019 31 Dec 20182 31 Dec 20172 Securitised liabilities (at amortised cost) 28,666 30,328 36,058 Pfandbriefs (covered bonds) 11,263 10,573 11,429 Municipal bonds 4,819 6,947 8,434 Other securitised liabilities 9,253 9,558 13,819 Sub-ordinated securitised liabilities 2,708 2,664 2,376 Securitised liabilities (at fair value ) 3,393 3,476 2,883 Securitised liabilities 32,058 33,766 38,941

48

3,615 8,728 5,795 9,629 NORD/LB

• Dt. Hypo

Total outstanding Total cover pool

NORD/LB Group’s Pfandbriefe (covered bonds) at a glance (1/2).

Appendix

12,916 3,636 16,836 3,754 NORD/LB

• Dt. Hypo

Total outstanding Total cover pool Total cover pool: €20.6bn as at 31 Mar 2019

Public Sector Pfandbriefe

Total cover pool: €15.4bn as at 31 Mar 2019

Mortgage Pfandbriefe

49

43 5 4,489 115 613 5,639 NORD/LB Ship Pfandbriefe NORD/LB Aircraft Pfandbriefe NORD/LB CBB Lettres de Gage

Total outstanding Total cover pool

NORD/LB Group’s Pfandbriefe (covered bonds) at a glance (2/2).

Appendix

The cover pools of NORD/LB and BLB were merged in the course of the merger on 1 September 2017 and were published jointly in the transparency guidelines for the first time on 30 Sep 2017

as at 31 Mar 2019 Total cover pool: €6.4bn

Other Pfandbriefe/Covered Bonds

50 Countries 8% Regional authorities 22% Local authorities 41% Other 25% Loans acc. to § 20, para 2 no 2 4% Office buildings 8% Commercial Buildings 6% Industrial buildings 1% Other commerial buildings 12% Condomi- niums 4% One and two family houses 15% Apartment buidings 40% Loans acc. to §19 para. 1 14%

NORD/LB’s Pfandbriefe (covered bonds): first class and secure collateral (1/2).

Appendix

1) Nominal value, NORD/LB AöR (NORD/LB single entity) 2) Debtor incl. overcollateralization 3) 93 per cent Germany 4) Moody‘s Performance Overview as at 31 December 2018

as at 31 Mar 2019 as at 31 Mar 2019

Mortgage Pfandbrief (by building type) Public-Sector Pfandbrief (by debtor)2, 3

€5.8bn1 €16.8bn1 Outstandings €3,614.8m Cover pool total €5,795.2m Over-collateralisation €2,180.4m / 60.3 % Weighted average life of outstanding Pfandbriefe4 4.4 years Weighted average life of the cover pool4 5.1 years Outstandings €12,916.3m Cover pool total €16,836.1m Over-collateralisation €3,919.8m / 30.3 % Weighted average life of outstanding Pfandbriefe4 6.5 years Weighted average life of the cover pool4 6.7 years

51 Bulker 20% Containers 6% MPP 10% Tankers 54% Others 7% Loans acc. to §26 para. 1 no 4 3% Freighter 30% Narrowbody 25% Regional Jet 8% Turboprop 21% Ultralarge 7% Widebody 8% Loans acc. to §26 para. 1 no 3 1%

NORD/LB’s Pfandbriefe (covered bonds): first class and secure collateral (2/2).

Appendix

1) Nominal value, NORD/LB AöR (NORD/LB single entity) 2) Moody‘s Performance Overview as at 30 September 2018

as at 31 Mar 2019 as at 31 Mar 2019

Ship Pfandbrief (by type) Aircraft Pfandbrief (by type)

€115.3m1 €613m1 Outstandings €43.1m Cover pool total €115.3m Over-collateralisation €72.2m / 167.5 % Outstandings €5.0m Cover pool total €613.1m Over-collateralisation €608.1m / 12,162.0 % Weighted average life of outstanding Pfandbriefe² 0.4 years Weighted average life of the cover pool² 5.2 years

52

NORD/LB Group - Pfandbriefe at a glance.

Appendix

1) Outstandings 31 March 2019 versus 31 March 2018

Nominal values as at 31 Mar 2019 (in €m) Outstandings Cover pool total Over- collateralisation Over- collateralisation in % Change of

• utstandings in

20191 NORD/LB AöR Public-Sector Pfandbrief 12,916.3 16,836.1 3,919.8 30.3

• 3,549.9

NORD/LB AöR Mortgage Pfandbrief 3,614.8 5,795.2 2,180.4 60.3

• 469.2

NORD/LB AöR Ship Pfandbrief 43.1 115.3 72.2 167.5

• 33.0

NORD/LB AöR Aircraft Pfandbrief 5.0 613.1 608.1 12,162.0

• 500.0

Deutsche Hypo Public-Sector Pfandbrief 3,636.1 3,754.4 118.3 3.3

• 407.7

Deutsche Hypo Mortgage Pfandbrief 8,727.7 9,628.7 901.0 10.3 470.5 NORD/LB Luxembourg Lettres de Gage Publique 4,489.4 5,638.7 1,149.2 25.6 150.5 Total 33,432.4 42,381.5 8,949.0

• 4,338.8

53

Institutional protection and deposit guarantee schemes of NORD/LB.

Appendix

Basic protective measures to avoid bankruptcy The Capital Requirements Regulation (CRR ) is a EU regulation in banking containing requirements for capital adequacy under Basel III Institutional Protection Scheme of the Savings Banks Finance Group was founded in the 1970s Since July 2015 the Institutional Protection Scheme is recognised as a deposit guarantee scheme under Germany’s Deposit Guarantee Act (EinSiG) 13 guarantee funds: of the Landesbanken (1), of the regional savings banks (11) and of the building associations (1) Bail-in of shareholders and creditors − Equity: Tier 1, AT 1, Tier 2, subordinated capital − Liabilities: Senior unsecured and other (structured) liabilities Excluded: i.a. deposits (under Deposit Guarantee Act: up to 100,000€/person), covered bonds as well as money market instruments The Single Resolution Mechanism (SRM) is augmented by the Single Resolution Fund (SRF), which can provide the financial resources needed for resolution. European deposit guarantee scheme: The German banking industry defeats the proposed regulations of the EU commission. There is a compromise proposal from the EU parliament. But it is still quite uncertain, whether this proposal will come into effect

Legal responsibility

Institutional Protection Scheme

• f the Savings Banks Finance Group

German Act on the Recovery and Resolution of Credit Institutions European Scheme Capital requirements

54

Important links.

Appendix

Declaration of Norddeutsche Landesbank Girozentrale on the German Corporate Governance Codex: www.nordlb.com/legal-information/legal-notices/corporate-governance/ NORD/LB protection scheme www.nordlb.com/legal-information/legal-notices/security-mechanisms/ Sustainability (report, ratings) www.nordlb.com/nordlb/sustainability/ NORD/LB supervisory board www.nordlb.com/nordlb/investor-relations/committees-and-executive-bodies/ NORD/LB Annual, Interim Reports and Disclosure Reports www.nordlb.com/reports

55

NORD/LB Norddeutsche Landesbank Girozentrale Investor Relations Georgsplatz 1 30159 Hanover, Germany ir@nordlb.de www.nordlb.de/www.nordlb.com Bitte hier Ihr Foto einfügen Gabriele Bödeker (Head of Investor Relations) gabriele.boedeker@nordlb.de Tel.: ++49 511 361-4338 Thomas Breit thomas.breit@nordlb.de Tel.: ++49 511 361-5382 Marcel Mock, CIIA, CEFA marcel.mock@nordlb.de Tel.: ++49 511 361-8914 Svenja Pohlmann svenja.pohlmann@nordlb.de Tel.: ++49 511 361-4683

Contact.

56

Disclaimer.

This presentation and the information contained herein, as well as any additional documents and explanations (together the “material“), are issued by NORDDEUTSCHE LANDESBANK GIROZENTRALE (“NORD/LB”). This presentation contains certain forward-looking statements and forecasts reflecting NORD/LB management’s current views with respect to certain future

• events. These forward-looking statements include, but are not limited to, all

statements other than statements of historical facts, including, without, limitation, those regarding NORD/LB’s future financial position and results of

• perations, strategy, plans, objectives, goals and targets and future

developments in the markets where NORD/LB participates or is seeking to

• participate. The NORD/LB Group’s ability to achieve its projected results is

dependent on many factors which are outside management’s control. Actual results may differ materially from (and be more negative than) those projected

• r implied in the forward-looking statements. Such forward-looking information

involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. The following important factors could cause the Group’s actual results to differ materially from those projected or implied in any forward-looking statements: – the impact of regulatory decisions and changes in the regulatory environment; – the impact of political and economic developments in Germany and other countries in which the Group operates; – the impact of fluctuations in currency exchange and interest rates; and – the Group’s ability to achieve the expected return on the investments and capital expenditures it has made in Germany and in foreign countries. The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. All forward- looking statements included herein are based on information available to NORD/LB as of the date hereof. NORD/LB undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to NORD/LB or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The material is provided to you for informational purposes only, and NORD/LB is not soliciting any action based upon it. The material is not intended as, shall not be construed as and does not constitute, an offer or solicitation for the purchase or sale of any security or other financial instrument or financial service

• f NORD/LB or of any other entity. Any offer of securities, other financial

instruments or financial services would be made pursuant to offering materials to which prospective investors would be referred. Any information contained in the material does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the definitive offering materials. The information herein supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions, including any offering materials. NORD/LB is not obliged to update or periodically review the material. All information in the material is expressed as at the date indicated in the material and is subject to changes at any time without the necessity of prior notice or

• ther publication of such changes to be given. The material is intended for the

information of NORD/LB´s institutional clients only. The information contained in the material should not be relied on by any person.

57

Disclaimer.

In the United Kingdom this communication is being issued only to, and is directed only at, intermediate customers and market counterparties for the purposes of the Financial Services Authority’s Rules ("relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. To the extent that this communication can be interpreted as relating to any investment or investment activity then such investment or activity is available only to relevant persons and will be engaged in only with relevant persons. Viewing the following material involves no obligation or commitment of any kind by any person. Viewers of he following material are not to construe information contained in it as a recommendation that an investment is a suitable investment or that any recipient should take any action, such as making

• r selling an investment, or that any recipient should refrain from taking any
• action. Prior to making an investment decision, investors should conduct such

investigations as they consider necessary to verify information contained in the relevant offering materials and to determine whether the relevant investment is appropriate and suitable for them. In addition, investors should consult their

• wn legal, accounting and tax advisers in order to determine the consequences
• f such investment and to make an independent evaluation of such investment.

Opinions expressed in the material are NORD/LB´s present opinions only. The material is based upon information that NORD/LB considers reliable, but NORD/LB does not represent, guarantee, or warrant, expressly or implicitly, that the material or any part of it is valid, accurate or complete (or that any assumptions, data or projections underlying any estimates or projections contained in the material are valid, accurate or complete), or suitable for any particular purpose, and it should not be relied upon as such. NORD/LB accepts no liability or responsibility to any person with respect to, or arising directly or indirectly out of the contents of or any omissions from the material or any other written or oral communication transmitted to the recipient by NORD/LB. Neither the material nor any part thereof may be reproduced, distributed, passed on, or otherwise divulged directly or indirectly by the party that receives it, to any other person without the prior written consent of NORD/LB. The distribution of the material in certain jurisdictions may be restricted by law and persons into whose possession the material comes are required by NORD/LB to inform themselves about, and to observe, any such restrictions. This presentation does not constitute an offer to sell or the solicitation of an

• ffer to purchase or subscribe for any securities of NORD/LB in the United
• States. No part of this presentation should form the basis of or be relied upon in

connection with any investment decision or any contract or commitment to purchase or subscribe for any securities of NORD/LB. Any offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from NORD/LB and will contain detailed information about NORD/LB, its management and its financial statements. None of NORD/LB’s securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1993, as amended, or pursuant to an exemption from registration therefrom. By viewing the following material, the recipient acknowledges, and agrees to abide by, the aforementioned.