W&W Group Investor Presentation April 2018 Agenda 1 W&W - - PowerPoint PPT Presentation

Investor Presentation April 2018

W&W Group

1

W&W at a glance

2

Financials

3

Goal & strategy

4

Appendix

Agenda

Page 2

Our roots: Wüstenrot & Württembergische

Page 3

W&W at a glance

1999 Merger of equals of Wüstenrot & Württembergische. 1833 Allgemeine

Rentenanstalt, the first pension insurance in Germany was established.

1828 Württembergische Privat-

Feuer-Versicherungsgesellschaft was established, the oldest private property insurance in southern Germany,

1991 Both

companies formed the Württembergische Insurance Group.

1921 Wüstenrot,

Germany‘s first home loan and savings bank, was founded. Acquisitions: 2005 Karlsruher Versicherungsgruppe 2009 Vereinsbank Victoria Bauspar AG 2010 Allianz Dresdner Bauspar AG 2018 Starting webbased platform “Wüstenrot Wohnwelt” 2017 Acquisition of treefin AG, creating „FinanzGuide App“, as financial assistant 2017 introducing new digital brand “Adam Riese”

Our Group fundamentals: resistant business model

Page 4

W&W at a glance

 W&W is well diversified to face challenging market conditions.

Reporting segments & net profits 2017 of the W&W Group

Others

W&W Asset Management Czech Republic

Bausparkasse Mortgage Bank

• 6,1 million customers
• 6,500 employees in Germany
• 6,000 tied agents
• W&W’s product range focuses on life issues such as housing, assets, protection and a sustainable future.
• No. 2 in German home loan savings

(14.2% market share)

• No. 9 in German property & casualty

insurance (2.5% market share)

• No. 13 in German life & health

insurance (2.3% market share)

• Core market Germany
• Major offices in Stuttgart and

Ludwigsburg

• Additional business in Czech Rep.

Net profit 2017 € 125.8mn

Württembergische Versicherung

Net profit 2017 € 31.8mn Net profit 2017 € 58.5mn

Wüstenrot Bausparkasse AG Württembergische Lebensversicherung Württembergische Krankenversicherung

Life and Health Insurance Property and Casualty Insurance Home Loan and Savings

Our sales force: broadly positioned to capture further growth

Page 5

W&W at a glance

8,000 brokers

Banks Insurance companies Financial sales networks Brokers

Insurance companies Financial sales networks

Cooperations

Partnerships and cooperations

 Potential access to 40 million customers.

Own sales channels

~ 3,000 tied agents Württembergische ~ 3,000 tied agents Wüstenrot Direct channel

Our shareholder structure: reliable and long-term oriented

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W&W at a glance

• Wüstenrot and Württembergische merged on 1 January
• 1999. The company went public on 9 September 1999.

Since then W&W registered shares have been officially listed in Stuttgart and Frankfurt. W&W AG is part of the SDAX since March 2016.

• Wüstenrot Stiftung holds its indirect stake in W&W in two
• companies. Wüstenrot Holding AG owns 39.1% and the

WS Holding AG owns 26.4% of the shares. Both companies are solely owned by Wüstenrot Stiftung.

• Wüstenrot Stiftung is a private non-profit foundation. It is

established and maintained exclusively for cultural, artistic, scientific, educational and charitable purposes. Around 70% of its funds are used to initiate, plan and realise its own foundation projects. With the remaining 30%, it awards financial sponsorships for the implementation of outstanding ideas and projects from

• ther institutions.

Wüstenrot Stiftung as indirect anchor investor ensures the stability

• f the W&W Group.



Wüstenrot Stiftung

Wüstenrot & Württembergische AG

100.00% 39.91% Treasury Shares Other Institutional 100.00% 26.40% 10.00% 0.21% Freefloat 23.48% Wüstenrot Holding AG WS Holding AG

Our share: Attractive to long-term investors

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W&W at a glance

+30%

Institution Date Analyst Rating Upside

Metzler 29.03.18 Jochen Schmitt Buy/Price target: 25.60 € 34% Lampe 03.04.18 Andreas Schäfer Buy/Price target: 22.50 € 18% Commerz- bank 29.03.18 Michael Dunst Buy/Price target: 22.00 € 15% Montega 29.03.18 Frank Biller Buy/Price target: 23.00 € 20% LBBW 28.03.18 Werner Schirmer Buy/Price target: 23.00 € 19%

Dividend policy: at least to maintain our dividend

2.63% 2017 0,65 € 2,74 € 2.78% 2,42 € 2011 3.50% 1,94 € 0,50 € 0,50 € 2010 3.23% 0,50 € 2015 2,88 € 2.82% 1,88 € 0,60 € 0,50 € 2014 2016 0,50 € 0,60 € 2013 2.89% 2012 2,49 € 3.22% 3.04% 2,52 € 1,56 € Earnings per Share Yield Dividend per Share

IFRS Consolidated net profit, in € mn

Strong track record; sustainable further profit targeted



Continuous increase in net profit despite global market crisis.

* estimate

• 100

100 200 300

2014 2013 2012 2001 2000 2011 2010

205

2009 2008 2007

166

2006 2005 2004 2003

16

2002

Average consolidated net profit Actual consolidated annual net profit

„W&W 2009“ Restructuring program „W&W 2012“ Expansion program „W&W 2015“ Program to reinforce our strengths

Plan consolidated annual net profit

„W&W Besser!“ Strategy implementation

226

2015 2016 2017 2018

long term guidance:

250 220

W&W at a glance

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W&W constantly exceeds its forecasts

258

235

235

220

274

240

242

180

155

135

2014 Forecast 2013 2014 2013 Forecast 2017 2017 Forecast 2015 Forecast 2016 Forecast 2016 2015



Forecast 2018: at least 200 € mn net profit.

IFRS Consolidated net profit, in € mn

W&W at a glance

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1 W&W at a glance

2 Financials

3

Goal & strategy

4

Appendix

Agenda

Page 10

Highlights 2017

Financials

+ Group net profit with € 258.0mn significantly above planned (€ 230.0mn) and previous year‘s result (€ 235.3mn) + € 153mn increase in equity capital + W&W stock +26%. Dividend increase to € 0.65, yield exceeding MDAX and SDAX + Financial result driven by economic environment and stock market development + Again strong underwriting result in the property/casualty insurance segment − Administrative expenses above previous year due to investments in digitalization + Productivity growth rate of 5% in plan

• Market share and gross new business in home loan savings increased

+ Volume of home loans increased (incl. third party book) + Casualty insurance premiums increased + Increase in premiums in the health insurance segment, esp. in supplemental agreements − Still difficult market environment in life insurance: increase of new business in

• ccupational pension schemes; decrease of new business in single premiums as

scheduled + Fund sales above previous year

W&W with strong result in 2017. Profitable new business. Notable increase in Property & Casualty Insurance.

+ New brand Adam Riese launched + FinanzGuide for W&W customers online + „Wüstenrot Wohnwelt“ designed (introduced in January 2018)

Digital transformation.

Page 11

Results 2014 – 2017: Overview

Page 12

Financials

Group segments 2014 (in €mn) 2015 (in €mn) 2016 (in €mn) 2017 (in €mn) Segment Home Loan and Savings Bank 51.8 57.0 58.7 58.5 Segment Life and Health Insurance 45.7 40.3 49.7 31.8 Segment Property/Casualty Insurance 128.2 114.9 108.3 125.8 Others/Consolidation 16.3 62.1 18.6 41.9 Group Net Profit 242.0 274.3 235.3 258.0

Earnings before income taxes 283.0 323.6 291.6 292.4 Income taxes

• 41.0
• 49.3
• 56.3
• 34.4
• Segment Property/Casualty Insurance: Strong underwriting result.
• Others / Consolidation: Extraordinary income of € 18.3mn from sale of V-Bank stake.
• Income taxes: Reduced due to capitalisation of tax receivables resulting from the offsetting of with-

holding tax for previous years, the settlement of taxes from previous years and tax-free equity gains.

Net profit has notably surpassed previous year‘s result.

Higher financial result (+ € 14.6mn) Lower premiums/contr. earned (- € 123.5mn) Lower insurance benefits (+ € 49.7mn) Higher administrative expenses (- € 24.1mn) Other operating result (+ € 70.5mn) Lower income tax (+ € 21.9mn)

Consolidated net results W&W Group

Page 13

Financials

Comments consolidated net profit 2017 Consolidated net profit Return on equity* Administrative expenses

in €mn in %

*Based on average equity per year

in €bn 258.0 2016 274.3 2017 2014 242.0 2015 235.3 2017 1.10 1.08 2016 1.11 1.11 2014 2015 Personnel Material Depreciation 4 8 6 2 2017 6.8% 2006 2.0% 6.4% RoE Average RoE (2006-2017) +4.8 p.p.

Home Loan & Savings segment*

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Financials

Core capital ratio*** New business construction financing

*Segment includes Wüstenrot Bausparkasse AG and other operative entities **Including brokering for third parties

in % in €bn

Gross new business Net new business

in €mn in €mn

Market share, gross

in % 13.6 2017 13.6 2014 2015 2016 14.1 13.7 11.5 2017 11.5 2016 2014 2015 11.9 11.7 14.2 2015 2014 13.0 12.7 2017 2016 14.6 2017** 2016** 5.5 4.8 2014 5.4 2015** 5.5 2015 19.4 2017 22.5 2016 15.3 2014 13.8

***Financial Holding Group

Life & Health Insurance segment

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Financials

• Add. interest reserve

Return new invests Duration WL

in % in € mn in years

SII-Ratio Gross premiums written New business

in €bn in €mn 2.43 2016 2015 2017 2.32 2.13 2.38 2014 Life & Health Pension Unit-Linked 114.5 2014 127.1 542.6 2015 564.6 604.4 366.8 2017 110.8 2016 116.6 Regular Premium Single Premium 1,600 2016 2015 1,309 2,046 2017 2.2 2016 2.4 2015 2.3 2017 2017 10.6 2015 2016 9.4 10.0 205 405 157 219 Group WL in %

31.12.2017 31.12.2017 / Q4

w/o Trans with Trans

Ø actuarial int. rate*

in % 2.4 2016 2.2 2015 2.6 2017

* incl. additional interest reserve / interest rate reinforcement

Property & Casualty Insurance segment

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Financials

Net growth in number of contracts Gross natural disaster claims Gross combined ratio Gross premiums written

in thousand contracts in €bn in €mn in % 73 2014 155 45 2016 2015 60 2017 2017 1.68 1.64 2014 2016 1.58 2015 1.75 Corporate Car Retail 2017 90.7 2015 92.1 2014 2016 95.5 90.1 2014 65.0 73.6 2016 79.8 2017 2015 41.2

1 W&W at a glance 2 Financials

3 Goal & strategy

4

Appendix

Agenda

Page 17

Top strategic goals – long term

Page 18

Goal & strategy

• Consolidated net profit IFRS € 220 - 250mn
• Local GAAP >= € 100mn
• Reliable dividend

Solid Earnings Above average growth Digital transformation

Goal: Long-term profitable, risk-averse growth above market average.

Increased efficiency

• Growth rate at least twice

market growth rate

• Improve productivity

by 5% p.a.

• Existing business segments
• New business segments

(brandpool)

Strategy implementation bundled in “W&W Besser!”

Goal & strategy

W&W Besser!

(Strategy implementation) Digital transformation in all segments Delighting customers and boosting sales force! Developing new business models! Increasing efficiency and service quality! Developing profitable growth fields! Inspiring employees! Laying the IT foundation!

Focusing business portfolio Developing a platform

• n housing

Attracting high potential employees Emphasising

• n commercial

customers Digitali- sation Launching a new digital brand Entering into new cooperations Improving customer experience Reducing administrative expenses

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Clear objective: W&W as winner of the upheaval in the financial industry.

“brandpool”: developing new digital business models

Goal & strategy

Further digital topics brandpool

W&W invests in innovative, future-oriented new business models.

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Further implemented strategic activities

Goal & strategy

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Our new digital platform “Wüstenrot Wohnwelt” offering for potential real estate buyers and owners real estate search engine third party offerings on the topics

• f building and living

started in January approx. 200,000 page views in first 4 weeks Our new W&W Campus construction phase one completed in time 1,200 new, modern workspaces are in use demolition of further buildings for phase two started Wüstenrot Wohnwelt W&W Campus

Outlook 2018

Goal & strategy

Growt wth

• New business expected to rise in all core business segments

Invest stme ments

• Increase in overall investments to seize the chances of the digital

transformation

IFRS RS

• 2018 consolidated net profit expected to reach at least € 200 mn

(long-term goal € 220 to 250 mn)

Lo Local GAAP GAAP

• Net profits under local GAAP (HGB) at € 70 to 90 mn

Dividen end

• Reliable dividend policy: at least equal to previous year’s level

(2017: € 0.65 / share)

W&W stems significant future-oriented investments on its own.

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Thank you for your kind attention!

For further information please contact: Michael Ellwanger, Head of Investor Relations ir@ww-ag.com +49 711 662 725252 www.ww-ag.com

Online Report German + English IR Newsletter Fact Sheet German + English

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1 W&W at a glance 2 Financials 3 Goal & strategy

4 Appendix

Agenda

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Jürgen A. Junker Degree in Business Administration

Management with extensive financial market expertise…

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Appendix

Dr Michael Gutjahr Degree in Mathematics

• Since 2009 Board Member of W&W AG and Wüstenrot Bausparkasse

AG, responsible for Finance, Risk Management and Human Resources

• Since 2002 Board Member of Württembergische Versicherung AG

and Württembergische Lebensversicherung AG

• 2001-2002 Board Member of Wüstenrot Bausparkasse AG
• Since 1 April 2016 Board Member of W&W AG, responsible for Strategy,

Audit, Legal and Compliance, Digital Customer Office, Investor Relations

• 2007-2016 Board Member of VHV Allgemeine Versicherung AG

and VHV Lebensversicherung AG for Sales and Group Investments

• 2007 Head of Department Corporate Sales Management, VHV

Allgemeine Versicherung und VHV Lebensversicherung

• Since 2014 Board Member of Württembergische Versicherung AG

and Württembergische Lebensversicherung AG

• Since 2012 CIO of W&W AG, responsible for IT and Operations
• 2007-2012 Board Member of AXA AG
• 2003-2006 Board Member of Winterthur IT Development AG

CEO CFO

Jens Wieland Degree in Business Informatics Technology

CIO

• Since 2006 Member of the Executive Board of

Wüstenrot Bausparkasse AG

• Since 2009 General agent of Wüstenrot Bank AG Pfandbriefbank
• Since 2013 General representative of

Wüstenrot & Württembergische AG

General Rep.

Norbert Heinen Degree in Mathematics and Physics Bernd Hertweck Banking Specialist

…supported by highly qualified top management level

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Appendix

• Head of Insurance Department and

CEO of Württembergische Versicherungen

• Since 2010 CEO of Württembergische Versicherungen
• Since 1995 Board Member of Deutsche Aktuarvereinigung (DAV),

CEO 2005-2007

• Since 1993 diverse managerial positions in the financial sector
• Head of BausparBank Department and CEO of Wüstenrot Bausparkasse AG
• Since 2013 CEO of Wüstenrot Bausparkasse AG,

general agent/plenipotentary of Wüstenrot Bank AG Pfandbriefbank

• 2006-2013 Board Member of Wüstenrot Bausparkasse AG
• Since 1994 diverse managerial positions at Schwäbisch Hall

Bausparkasse

CEO home loan & savings CEO insurance

Jürgen Steffan Banking Specialist

Financial calendar 2018

Appendix

10/04/2018 Montega Roadshow, Frankfurt 12/04/2018 Montega Roadshow, Hamburg 20/04/2018 Bankhaus Lampe Deutschlandkonferenz, Baden-Baden 27/04/2018 Metzler Roadshow, Switzerland 15/05/2018 W&W AG Quarterly Statement 3M 2018 13/06/2018 W&W AG Annual General Meeting, Ludwigsburg 13/08/2018 W&W AG Interim Report 6M 2018 24-26/09/2018 Berenberg Conference, Munich 13/11/2018 W&W AG Quarterly Statement 9M 2018 15/11/2018 LBBW German Company Day, London 26-28/11/2018 Eigenkapitalforum, Frankfurt Further information: www.ww-ag.de/calendar

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The basic idea of German home loan & savings contracts

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Appendix

• Annuity with secured interest rates,

governmental sponsorship and special repayments (all parameters fixed prior to savings period)

• Well-established pillar in German retirement

planning

• W&W offers specified contract designs
• “Bausparer”* put aside 40-50% of

beforehand agreed contract volume at relatively low interest rates

• If minimum savings threshold is reached,

allotment of residual amount takes place

• Possible: Bullet loan in advance which is

redeemed by home loan & savings activity Contract volume Savings period Loan period

*People who strive to build or purchase their own property

Time

This presentation and the information contained herein, as well as any additional documents and explanations (together the “material“), are issued by Wüstenrot & Württembergische AG (“W&W”). This presentation contains certain forward-looking statements and forecasts reflecting W&W 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 W&W’s future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where W&W participates or is seeking to participate. The W&W 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 or 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 W&W as of the date hereof. W&W 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 W&W 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 W&W 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 of W&W 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. W&W 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 other publication of such changes to be given. The material is intended for the information of W&W´s institutional clients only. The information contained in the material should not be relied on by any person. 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.

Disclaimer

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