Raiffeisenlandesbank Oberoesterreich AG Austria's strongest regional - - PowerPoint PPT Presentation

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Raiffeisenlandesbank Oberoesterreich AG

Austria's strongest regional bank Investor presentation

Second quarter of 2019

Page 2

Content

1. Macro data and banking sector Page 3 2. Raiffeisenlandesbank Oberoesterreich AG Page 9 3. Key figures Page 17 4. Funding Page 25 5. Cover Pool Page 29 6. Highlights Page 32 7. Contacts Page 34

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• 1. Macro data and banking sector

Page 4

Data and facts on Austria

Source: 05/2019; TFM/WPR-ER, Putschögl; Statistik Austria, Eurostat, IWF, OeNB, Wifo *Comparable figure eurozone total

0,0 % 1,0 % 2,0 % 3,0 % 2016 2017 2018 2019p 2020p

Austria Eurozone

0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 % 2016 2017 2018 2019p 2020p

Austria Eurozone

0,0 % 2,0 % 4,0 % 6,0 % 8,0 % 10,0 % 12,0 % 2016 2017 2018 2019p 2020p

Austria Eurozone

General data Austria 2018 Eurozone share

Population 8,822,267 2.6% Surface area (in km²) 83,879 3.0% Nominal GDP (in EUR bn) 386.09 3.3% GDP per capita (in EUR) 43,660 28.8% above average for euro zone Budget balance (% of GDP) – 2018e +0.1

• 0.6*

State debt ratio (% of GDP) – 2018e 73.8 86.9*

Gross domestic product in % Inflation in % Unemployment rate in %

Page 5

Data and Facts on Upper Austria

Gross regional product and rating

Average gross regional product in Upper Austria in the last seven years was 0.4 % above that of Austria.

Source: 05/2019; TFM; APA Data: Statistics Austria

0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 % 3,0 % 3,5 % 4,0 %

2011 2012 2013 2014 2015 2016 2017 2011 - 2017

Upper Austria Austria

Austria Upper Austria Styria Vorarlberg Vienna Tyrol Carinthia Salzburg Lower Austria Burgenland Moody‘s Aa1 Aa1 Aa3 Aa1 S&P AA+ AA+ AA AA+ AA AA

Page 6

Data and Facts on Upper Austria

Labour market

Source: 05/2019; TFM; APA Data: Statistics Austria

Average unemployment in Upper Austria in the last seven years was 2.7 % below that for the whole of Austria

0,0 % 1,0 % 2,0 % 3,0 % 4,0 % 5,0 % 6,0 % 7,0 % 8,0 % 9,0 % 10,0 %

2012 2013 2014 2015 2016 2017 2018 2012 - 2018

Upper Austria Austria

Page 7

Data and facts 2018

Industry location Upper Austria

Upper Austria in figures Upper Austria Ranking 1 As a % of Austria

Population 1.473.576 3 16.7 Surface area in km² 11.980 4 14.3 People in employment 665.7 2 17.8 Production value (industry) in EUR billions 43.1 1 24.5 Exports* (goods) in EUR billions 36.5 1 25.7

Industrial sectors/production data Upper Austria in EUR billions Austria in EUR billions As a % of Austria

Machinery and metal goods 12.4 39.2 31.6 Vehicles (automotive) 8.1 16.9 47.9 Chemical industry 5.1 15.4 33.3 Non-ferrous metal 2.4 4.9 48.6 Food 2.3 10.1 22.9 Construction 2.0 7.0 27.9

The production value of around EUR 43.1 billion equates to a relative share in the total production value of Austria of 24.5%

Source: 05/2019; WKO OOE, Statistics Austria;

1 Ranking of Upper Austria amongst the nine federal

regions *Figures 2017

Page 8

The largest Austrian banks

Rank Bank Total Assets in EUR billions Employees CET 1 Ratio in % 1 Erste Group Bank AG 236.8 47,397 13.5 2 Raiffeisen Bank International AG - RBI 140.2 47,079 13.4 3 Unicredit Bank Austria AG 99.0 5,374 18.6 4 BAWAG P.S.K. AG 44.7 4,132 12.2 5 Raiffeisenlandesbank Oberoesterreich AG 42.0 1,501* 15.1 6 Oesterreichische Kontrollbank AG 28.7 466 64.0 7 Raiffeisenlandesbank Niederoesterreich AG 25.7 957 13.6 8 Oberbank AG 22.2 2,101 17.5 9 Raiffeisenlandesbank Steiermark AG 15.1 632 18.7 10 HYPO NOE Group 14.1 789 20.9

Source: 05/2019; TFM Total assets as at 31 Dec. 2018 * only RLB OOE – without consolidated companies

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• 2. Raiffeisenlandesbank

Oberoesterreich AG

Page 10

Shareholder structure

Raiffeisen Banking Group

Source: 05/2019; TFM

388 Raiffeisenbanks

Across Austria, 388 independent Raiffeisenbanks with a total of around 1,500 branches

8 Raiffeisen regional banks

Majority shareholders in RBI 100 % 58.80 %

80 Raiffeisenbanks

Across Upper Austria, 80 independent Raiffeisenbanks with a total of 418 branches Shareholder in RBI 100 % 9.51 %

Austria Upper Austria

Free Float

41.20 %

Page 11

Institutional Protection Scheme (IPS)

Raiffeisen Group

Source: KRW/BW, Freund; 05/2019

Essential requirements of the CRR: Benefits of membership for the participating banks

• contractual or statutory liability agreement, liquidity and solvency of the banks is secured
• IPS has a suitable early detection system and carries out its own risk assessments
• annual consolidated financial statements or report
• no multiple use of capital
• the members need to commit to an essentially homogeneous business profile
• non-deduction of the participation in the central bank
• 0% weighting of liabilities within the IPS
• OTC derivatives can be entered into between IPS members without an external clearing house

IPS in accordance with Article 113 (7) and Article 49 (3) Capital Requirements Regulation (CRR)

„Raiffeisen Federal-IPS“

• Raiffeisenbank International
• Raiffeisen regional banks
• Raiffeisen Holding NOE-Wien
• Raiffeisen Bausparkasse
• Raiffeisen Wohnbaubank
• Posojilnica Bank

„Raiffeisen Regional-IPS“ Upper Austria

• Raiffeisenlandesbank Oberoesterreich AG
• Raiffeisenbanks in Upper Austria
• Raiffeisen-Kredit-Garantie-Gesellschaft m.b.H.
• With participation of Raiffeisen Upper Austria deposit fund

Page 12

The basis for a successful future

Key data on Raiffeisenlandesbank Oberoesterreich Group

• Austria's fifth largest bank
• Austria's strongest regional bank
• Austria's largest Raiffeisenlandesbank
• Rooted in Austria's strongest business region

Facts Key income figures 2018 (in EUR M) Equity figures 2018

Source 05/2019; TFM

Raiffeisenlandesbank Oberoesterreich AG operates in the strongest growing region of Austria. Average economic growth in Upper Austria was 0.3% above the average for Austria as a whole in the last seven years. Furthermore, overall production value at about 27% far exceeds the average for Austria.

• Balance sheet: 42,000
• Pre-tax profit: 369
• CET 1 Ratio:

15.1 %

• Total Capital Ratio:

16.8 %

Page 13

Branches and locations in Central Europe

Raiffeisenlandesbank Oberoesterreich

Source: 05/2019; TFM / ORG/I * Raiffeisenlandesbank Oberoesterreich plus Upper Austrian Raiffeisenbanks

Austria:

• Upper Austria
• Vienna

Southern Germany:

• Augsburg
• Heilbronn
• Munich
• Nuremberg
• Passau
• Regensburg
• Stuttgart
• Ulm
• Wuerzburg

Czech Republic:

• Prague

Raiffeisen Banking Group Upper Austria’s* market shares:

• Industrial companies

85.2%

• SMEs

37.8%

• Private customers

55.8%

Page 14

Strategic business fields

Raiffeisenlandesbank Oberoesterreich

• Financial Markets – asset-liability-management and customer treasury
• Corporates - corporate and institutional customers
• Retail & Private Banking – private-, commercial- and affluent private customers
• Raiffeisenbanks - strategic collaboration
• Equity investments

Raiffeisenlandesbank Oberoesterreich AG is focused on meeting the needs of its customers and places its Corporate and Private customer business as well as Financial Market business at the centre of its

• activities. Cooperation with the independent Raiffeisenbanks operating in Upper Austria forms a central

component in strengthening market position in the region.

Source: 05/2019; TFM

Page 15

• activ factoring AG, München
• Raiffeisen-IMPULS-Leasing

Gesellschaft m.b.H.

• SALZBURGER LANDES-

HYPOTHEKENBANK AG

• KEPLER-FONDS

Kapitalanlagegesellschaft m.b.H.

• Oberoesterreichische Landesbank AG
• Raiffeisenbank a.s., Prag
• Oberoesterreichische Versicherung AG
• Raiffeisen Bank International AG

100 % 100 %

• GRZ IT Center GmbH
• VIVATIS Holding AG 3)
• efko Frischfrucht und Delikatessen GmbH
• Oesterreichische Salinen AG
• AMAG Austria Metall AG
• Energie AG 2)
• voestalpine AG 1)
• REAL-TREUHAND Management GmbH
• RealRendite Immobilien GmbH
• RealBestand Immobilien GmbH & Co KG

9.96 % 16.50 % 13.54 % 13.97 % 100 %

Investment portfolios

Raiffeisenlandesbank Oberoesterreich Group

100 % 41.25 % 51.00 % 64.00 % 38.56 % 25.00 % 74.32 % 87.24 % 100 % 100 % 9.51 %

• Raiffeisen Bank International AG
• Raiffeisenbank a.s., Prag
• Oberoesterreichische Landesbank AG
• AMAG
• Oesterreich. Salinen AG
• voestalpine AG

Banks and Financial Institutions Outsourcing & banking-related investments Opportunity and partner capital Property Shareholdings with at-equity valuation (in extract)

As at: 05/2019, BET, Szigmund, Ganglbauer 1) proportion of shares with voting rights <15%, 10.24 % RLB indirectly via RLB OOE Invest

2) cumulative shares incl. Raiffeisen Banking Group Upper

Austria; 3) above PS RLB OOE

Page 16

Rating and supervision

Raiffeisenlandesbank Oberoesterreich Group

Long-term creditworthiness (Moody‘s) Baa1 Short-term creditworthiness (Moody‘s) P-2 Outlook (Moody‘s) stable Mortgage Covered Bond Ratings (Moody‘s) Aaa Sustainability rating (iss-oekom) C (prime)

Source: 05/2019; TFM

Raiffeisenlandesbank Oberoesterreich qualifies as a significant bank and is therefore directly supervised by the European Central Bank

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• 3. Key Figures

Page 18

Key earnings figures acc. to IFRS

Raiffeisenlandesbank Oberoesterreich Group – 2018 financial year

Amounts in EUR M 2018 2017

Operating profit 368 558 Pre-tax profit for the year 369 534 Comprehensive income 185 515 Pre-tax profit for the year / Ø Total assets (ROAA) 0.9 % 1.3 % Pre-tax profit for the year / Ø Equity (ROAE) 8.4 % 12.8 %

Amounts in EUR M 2018 2017

Group total assets according to IFRS 41,988 40,319

Consolidated equity according to IFRS in EUR M 2018 2017

CET 1 3,977 3,911 CET 1 Ratio * 15.1 % 15.8 % Total Capital 4,400 4,413 Total Capital Ratio 16.8 % 17.8 % Source: 05/2019; TFM Annual Report 2018

Page 19

41 318 244 534 369

200 400 600 2014 2015 2016 2017 2018

270 282 260 558 368

200 400 600 2014 2015 2016 2017 2018

11,2 13,8 14,6 15,8 15,1

5,0 10,0 15,0 20,0 2014 2015 2016 2017 2018

36 304 205 492 299

200 400 600 2014 2015 2016 2017 2018

Pre-tax profit for the year – in EUR M Operating profit – in EUR M After-tax profit for the year – in EUR M CET 1 ratio – in %

Group balance sheet acc to IFRS / 2014-2018

Raiffeisenlandesbank Oberoesterreich Group

Source: 05/2019; TFM Annual Reports for 2014-2018

Page 20

NPL- und Coverage Ratio

Raiffeisenlandesbank Oberoesterreich Group

NPL Ratio – in %

Quelle: 05/2019; GRM/KRC * Coverage Ratio data base: IFRS

9,3 8,4 5,9 4,4 2,6

5 10

2014 2015 2016 2017 2018

in EUR M Gross balance NPL’s NPL- Ratio (%)

Commercial and other real estate projects

2,846 21 0.7

Real estate project operators

2,334 21 0.9

Private households

1,699 61 3.6

Construction and supplementary construction trade

1,513 83 5.5

Engineering and plant construction

1,214 30 2.5

Public households and non-profit organisations

1,035 1 0.1

Residential building management

999 0.0

Motor vehicles

961 27 2.8

in EUR M Gross balance NPL-balance NPL-Ratio CR* I CR* II

RLB Oberoesterreich Group 22,686 590 2.6 41.2 77.5 Austria 14,194 380 2.7 41.5 72.2 Germany 5,151 100 1.9 42.0 81.4 Czech Republic 1,041 7 0.7 39.0 98.3 Loans (TEUR) 22,685,681 Non-Performing Loans (TEUR) 589,532 NPL-Coverage Ratio I in % 41.2 NPL-Coverage Ratio II in % 77.5

__________________Non-Performing Loans____________________

IFRS gross balance (before loan loss allowance deductions) to customers in total

NPL ratio

Loan loss allowances_

Non-Performing Loans

Loan loss allowances + collateral_

Non-Performing Loans

CR* I CR* II

Reference is made to the balance sheet item of “Loans and advances to customers” for the NPL

• calculations. In this process, the default definition according to Art. 178 (1) CRR is applied.

Non-performing loans = IFRS gross balance (before deduction of loan loss allowances) to customers in default classes Summary of the most important industries

Page 21

Risk-weighted assets

Raiffeisenlandesbank Oberoesterreich Group

15.000 17.500 20.000 22.500 25.000 27.500 30.000

2014 2015 2016 2017 2018 in EUR M

Source: 05/2019; Balance sheet Database: CRR circle of the RBG OOE Verbund eGen

Page 22

Source: 05/2019, GRM/MRC-ZLC * Phased In

2014 2015 2016 2017 2018 Liquidity Coverage Ratio (LCR) in % 104 98 117 128 128 Net Stable Funding Ratio (NSFR) in % 99 101 106 107 110 2014 2015 2016 2017 2018 CET 1* in Mio. EUR 2,828 3,165 3,402 3,911 3,977 Tier 2 in Mio. EUR 874 680 562 502 423 Total Capital in Mio. EUR 3,701 3,845 3,964 4,413 4,400 RWA in Mio. EUR 25,169 22,894 23,276 24,797 26,276 CET 1* Ratio in % 11.2 13.8 14.6 15.8 15.1 Total Capital Ratio in % 14.7 16.8 17.0 17.8 16.8

Liquidity and Equity figures

Raiffeisenlandesbank Oberoesterreich Group

CRR circle of the RBG OOE Verbund eGen / Figures as of 12/31 each year

Page 23

Loans diversified by industry

Raiffeisenlandesbank Oberoesterreich

Quelle: 05/2019; TFM, Spitzenberger

Industry 12.4% Commerce 9.2% Trade 6.2% Information and Consulting 24.5% Traffic and Transportation 1.4% Tourism 1.4% Public Trade 1.5% Residential building management 4.0% Private 5.0% Leasing 12.6% Agriculture and Forestry 0.2% Freelancer and Self-Employed 2.4% Real Estate Projects 11.3% Other borrowers 7.9%

Page 24

Loans diversified by country

Raiffeisenlandesbank Oberoesterreich group

Source: 05/2019, TFM; Annual Report 2018

Over 85 % of all loans and advances to customers stem from Austria and Germany

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• 4. Funding

Page 26

Source: 05/2019; TFM / Group Controlling Figures as at 31 December 2018

Issues; 27.73%

* Raiffeisen Bank Group Upper Austria

Funding and issuance structure

Raiffeisenlandesbank Oberoesterreich

Issues 25.4% Customer deposits 35.2% Interbank deposits 20.4% Interbank deposits RBG OOE* 19.0% Senior 61.3% Covered 29.2% Sub-

• rdinated

9.5%

Funding

Page 27

Maturity structure of own issuances

Raiffeisenlandesbank Oberoesterreich

in EUR M

200 400 600 800 1000 1200 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 >=2032 Covered Subordinated Senior

Source: 05/2019; TFM / Group Controlling Figures as at 31 December 2018

Page 28

Benchmark Issues

Raiffeisenlandesbank Oberoesterreich

• Raiffeisenlandesbank Oberoesterreich entered the capital market for the first time in September

2016 with a 10-year benchmark bond collateralised by mortgages (EUR 500 million).

• In November 2017 the first Senior Unsecured benchmark bond followed with a volume of EUR

500 million. This was the first Senior Unsecured benchmark bond in Austria since Mai 2014.

• In July 2018 a further benchmark issue of a 10-year benchmark bond collateralised by

mortgages was placed (EUR 500 million).

• All the issues were substantially oversubscribed and well placed on the capital market.

Source: 05/2019; TFM

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• 5. Cover Pool

Page 30

Facts – Mortgage Cover Pool

Raiffeisenlandesbank Oberoesterreich

Source: 05/2019, TFM Figures as at 31 March 2019

• Mortgage Covered Bond Rating (Moody’s): Aaa
• Loans are exclusively denominated in EUR – no currency risk
• 100 % Austrian debt, thereof 76 % in Upper Austria
• No NPL’s in the cover pool
• No derivatives in the cover pool
• Around 22,005 loans in the cover pool - high granularity
• Broad-based new mortgage loans through 80 local Raiffeisenbanks in Upper Austria
• RLB OOE is a member of the Pfandbriefforum in Austria - www.pfandbriefforum.at

Page 31

Mortgage Cover Pool

Raiffeisenlandesbank Oberoesterreich

Cover pool volume 3,272

• thereof RLB OOE
• thereof Upper Austrian Raiffeisenbanks

1,080 2,292 Outstanding bond volume* 1,619 Coverage

• Coverage in line with Moody‘s
• Nominal Coverage

1,653 235 1,418

Source: 05/2019; TFM; Figures as at 31 March 2019

Coverage 75% Weighted average LTV according to Austrian definition** 47% Share of 10 largest loans of cover pool 3%

in EUR M – 31 March 2019

* Not including accumulated interest, zero coupon bonds at the current value with accumulated interest ** LTV Austrian definition: Amount in coverage per loan/total sum of current property values minus preferential mortgages Note: All information and assessments relate to the reporting date as of 31 March 2019. The structure of both cover pools changes constantly – with due regard to the legal Austrian framework conditions (section 1 sub- section 5 of the Covered Bond Act).

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• 6. Highlights

Page 33

Highlights

Raiffeisenlandesbank Oberoesterreich group

Source: 05/2019; TFM Annual Report 2018

• Austria’s fifth largest bank
• Rooted in Austria's strongest business region
• Clear focus on Upper Austria and Southern Germany
• Profit (before tax): EUR 369 million
• CET 1 Ratio 15.1%
• Long-term creditworthiness (Moody‘s): Baa1, stable
• Mortgage Covered Bond Rating (Moody‘s): Aaa
• Oekom rating: C – Prime Status
• Raiffeisenlandesbank Oberoesterreich AG is member of UN Global Compact

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• 7. Contacts

Page 35

Contact details

Head of Treasury Financial Markets

Christian Ratz Tel: +43 732 6596 25200 Email: ratz@rlbooe.at

Head of Correspondent Banking

Jennifer Ann Radner Tel: +43 732 6596 23162 Email: radner@rlbooe.at

Financial Markets

Mario Ennsbrunner Tel: +43 732 6596 25160 Email: ennsbrunner@rlbooe.at

Head of Financial Markets

Josef Buhl Tel: +43 732 6596 25180 Email: josef.buhl@rlbooe.at

Senior Manager - Financial Markets

Andreas Zak Tel: +43 732 6596 25182 Email: zak@rlbooe.at

Financial Markets

Reinhard Ilk Tel: +43 732 6596 25165 Email: ilk@rlbooe.at

Page 36

Risk information and exclusion of liability

This document has been compiled by Raiffeisenlandesbank Oberoesterreich for information only. The information, analyses and forecasts contained herein are based on the knowledge and market assessment at the time of its preparation – subject to amendments and additions. Raiffeisenlandesbank Oberoesterreich assumes no liability for the accuracy, timeliness or completeness of the contents, nor for the accuracy of

• forecasts. The contents are non-binding and do not represent a recommendation to buy or sell. Because every investment decision requires an

individual determination based on the investor’s personal characteristics (such as risk tolerance), this information is no substitute for the personalised advice and risk disclosure provided by a customer advisor in the course of a consulting meeting. We expressly note that financial instruments and investments have major inherent risks. Performance is determined in accordance with the OeKB method, based on data from the custodian bank. We explicitly note that the composition of fund assets can change in accordance with legal regulations. Information about performance is related to the past and therefore does not represent a reliable indicator of future performance. Currency fluctuations in non-euro currencies can affect performance positively and negatively. Investments may result in tax obligations that depend on the customer’s personal circumstances and can be subject to changes in future. This information can therefore not replace the personalised support provided to an investor by a tax advisor. In the case of non- resident taxpayers, the exemption from tax in Austria does not include exemption from tax in the investor’s state of residence. Prospectuses and any endorsements of the issue of shares in Raiffeisenlandesbank Oberoesterreich AG, which must be published in accordance with the KMG, are the responsibility of Raiffeisenlandesbank Oberoesterreich AG. In the event of other share issues, the prospectus and any endorsements lie with the respective issuer of shares. Investment strategies for investment funds can focus primarily on investment funds, bank deposits and derivatives, or the emulation of an index. Funds may exhibit significant fluctuations in value (volatility). In the funds regulations approved by the Financial Supervisory Authority (FMA), issuers can be identified if they can be weighted as holding more than 35% of fund assets. The current sales prospectus, as well as the Key Investor Information – Customer Information Document (KID) if applicable are available in German and English at the respective KAG, the payment authority, or the tax representative in Austria. More information on risk and liability exclusion is available at www.boerse-live.at/Disclaimer; disclosure in accordance with section 48 of the Stock Exchange Act [Boersegesetz] at www.boerse-live.at/Offenlegung