1Investor-Update.
apoBank – The Leading Bank in
the German Healthcare Market.
June 2019
2Investor-Update.
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
R isk management , c red i t qua l i t y, f und ing .
1
3
4
The changing hea l thcare marke t .2
Agenda.
3Investor-Update.
apoBank – At a glance.
Close to our customers.Our 2,523 employees at 85 locations cater to the
needs of our customers.
85
Our mission
We promote our members, in particular professionals
in the healthcare sector, and their organisations as
well as corporations active in the healthcare sector.
Largest cooperative bank.
We are member of the National Association of
Germen cooperative Banks (BVR) and part of the
BVR deposit insurance system.
A captivating idea.458,770 customers, of which are 113,455
members of the bank, are convinced of our
mission.
Market leader
We are market leader In payments services and
lending business, our market share in start-up
financing reaches 60 percent
Rating of
apoBank:
AA-S&P
Tier 1
ratio:
16.7 %
Total
assets:
45.4 bn Euro
New lending
business:
7.1bn Euro
Net prof it
after tax:
62.9mn Euro
April 2019
4Investor-Update.
Leading bank in German healthcare market.
Client base.
Corporate clients
Professional associations &
clearing centres
Institutional
investors
Retail clients
Self-employed &
employed healthcare
professionals
Students of
medical professions
Promotion
of healthPrevention Diagnosis Curation
Reha-
bilitationNursing
Patient
5Investor-Update.
Strategy: Focussing on market opportunities.
New line „apoPrivat“ for investment
advisory
Increase in securit ies deposit volume
„3 in 3“
Increasing product range
Lead manager corporate
f inance / advisory
Tailor made services for
medical centres
Expansion of start-up f inancings
Development of consulting
Co-operations / new concepts
Implementation of
competence centre
for Digital Health
Expansion of consulting
Development of new consulting
services
FACILITATING
HEALT
SURGERY/
PHARMACY
APOHE@LTH
CORPORATES
BUSINESS
INSTITUTIONAL
INVESTORS
MEDICAL
CENTRES
6Investor-Update.
Bus iness mode l and s t ra tegy.
Bus iness pe r formance .
R isk management , c red i t qua l i t y, f und ing .
1
3
4
The changing hea l thcare marke t .2
Agenda.
7Investor-Update.
Driving forces in the healthcare market.E
co
no
mic
s
Demographic development
He
alth
ca
rep
olitic
s
Outpatient care Inpatient care Healthcare
industry
Digitalisation
8Investor-Update.
The healthcare sector is changing.
digitalisation
employment
co-operation
industrialisation
healthcare across
sectors
internationalisation capitalisation
9Investor-Update.
Larger units with increasing importance.
1,654
68,830
18,826
51,831
19,043
60,441
18,608
2015
8,326
69,860
15,362
61,515
70,916
2010 2012 2016
52,167
2017
19,877
67,022
69,498
49,208
20,044
69,844
65,039
50,479
2,490
11,060
1,938
51,679
13,826
2,156
17,063
2,821
62,527
Doctors in medical centresDoctors in single surgeries
Number of single surgeries
Doctors in professional associations
Number of professional associations Number of medical centres
∆
2010/
2017
-3%
-10%
+6%
-7%
+105%
+71%
10Investor-Update.
Framework conditions of the industrialisation process.
Driving factors
Change in values:
Young healthcare professionals increasingly
attach importance to work-life-balance and are
less adverse to jobs in larger medical care
centres
Demographics :
Senior surgery owners are increasingly
confronted with problems of finding successors;
offers to take over their surgery seats are
interesting
Legislation :
Healthcare legislation facilitates to implement
medical centres covering similar specialists,
serving as door opener in particular for dental
medical services
Patient demands :
Larger medical units offer transparent services,
longer opening hours and modern
equipment/facilities
11Investor-Update.
Industrialisation/capitalisation: The investors’ view.
Investors are looking for new
investment opportunities…
The fragmented healthcare market
in Germany is prone to active
consolidation.
Current focus is on
outpatient care.
Capital and technology intensive
disciplines offer huge industrialising
potential.
They are looking for stable,
cycle independent market
segments.!
1 2
34
5 6
…discovering healthcare as a global
growth market.
12Investor-Update.
Digitalisation changes structures in the healthcare market.
Today: The patient‘s first contact is the doctor.
550 mn outpatient
treatments19.5 mn inpatient
treatments
pharmaceutical
expenditure: 33 bn €
13Investor-Update.
Digitalisation changes structures in the healthcare market.
Tomorrow: Online first.
150 mn digital
treatments = 38,000
doctors
435 mn outpatient
treatments
pharmaceutical
expenditure 33 bn €
14Investor-Update.
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
R isk management , c red i t qua l i t y, f und ing .
1
3
4
The changing hea l thcare marke t .2
Agenda.
15Investor-Update.
Stable revenue basis.
Risk provisioning with reserve
character, in mn Euro
Operating expenditures,
in mn EuroOperating revenues,
in mn Euro
136112
95 10388
20162014 2015 2017 2018
890 854 810 817 869
20152014 2016 2017 2018
553 550 561 594 635
2014 2015 2016 2017 2018
59
39
-6 -12
32
2014 2015 2016 2017 2018
55 59 61 62 63
2014 20162015 2017 2018
Risk provisioning from the
operating business, in mn Euro
Net prof it after tax,
in mn Euro
2016 and 2017 net re lease
134153 160
133113
2016 201820172014 2015
Operating result,
in mn Euro
Risk provisioning with reserve character diminishes net profit,
but serves for taxed capital accumulation
16Investor-Update.
Sustainable growth strategy in the customer business.
Lending volumes,
in bn EuroNew lending business,
in bn Euro
6.45.2
6.3 6.8 7.1
2014 2015 2016 2017 2018
6.8 6.97.2
8.0
2015
7.8
2014 2016 2017 2018
Volume securit ies accounts,
private clients, in bn Euro
32.9
11.5
6.1
1.6
5.1
2017
6.3
2.1
5.1
6.2
12.7
2014
3.8
2018
2.6
4.9
14.1
7.1
3.1
4.8
6.6
15.6
4.7
17.3
24.326.1
27.9
30.1
2015 2016
Investment and private loans
Corporate clients
Real-estate loans
Start-up loans
17Investor-Update.
Bus iness mode l and s t ra tegy,
Bus iness pe r formance.
R isk management , c red i t qua l i t y, f und ing .
1
3
4
The changing hea l thcare marke t .2
Agenda.
18Investor-Update.
Very good portfolio quality.
Mapping o f in terna l apoBank rat ing c lasses (BVR-Mas terska la ) to externa l ra t ing c lasses
based on under ly ing defau l t p robabi l i t ies , drawdowns (c la ims to cus tomers , gross , secur i t ies ,
o f f -ba lance sheet i tems)
47.2%
29.0%16.0%
6.4%
1.4%Retail clients
30.7 bn Euro
17.7%
1.9%0.9%
79.4%
Not rated
Financial instruments
6.2 bn Euro
Professional assoc.,
large corporates
4.9 bn Euro
10.5%
25.5%0.4%
12.0%
51.5%
A
AAA-AA
BB-C
BBB
Steady portfolio growth, focus on retail clients as well as
professional associations and large corporates
Volume of financial instruments stable on low level
92% of retail exposure and 89% of exposure to professional
associations and large corporates are investment-grade rated
At 1.3% NPL-Ratio is at low level (2017: 1.5%)
Forbearance Ratio: 1.3%
Coverage Ratio: 38.4%
D
19Investor-Update.
Good regulatory capital position.
22.0%18.3%
25.0%
20.2%
26.1%
2014
26.1%
2015
22.6%
2016
21.8%
19.5%
2017
16.7%
2018
Regulatory capital ratiosRegulatory capital, in mn Euro
Equity ratio Common equity tier 1 ratio
839 936
450 383 324 275 233
1,092 1,154
1,100
1,051
2014
1,017
2,465
2015 2017
1,124
2016
1,129
1,181
2018
2,340 2,4112,528 2,543
Supplementary capital Members’ capital contributions
Reserves, other Total capital
2018 2019
CET1 Equity ratio CET1 Equity ratio
Overall capital
requirement7.38% 10.88% 8.26% 11.76%
Anticycl. buffer* 0 0.01%
Capital conser-
vation buffer1.875% 2.5%
Total SREP
capital requirem.5.5% 9.0% 5.75% 9.25%
P2R 1.0% 1.25%
P1R 4.5% 8.0% 4.5% 8.0%
Capital ratios will be dampened in future due to
further business expansion as well as Basle IV related
increase in RWA
Continued capital increase via further allocation to
reserves
Leverage ratio: 4.8% (31.12.2017: 5.2%)
Liquidity coverage ratio: 144% (31.12.2017: 132%)
Net stable funding ratio: 111% (31.12.2017: 108%)
* The national anticyclical capital buffer as been activated by the regulator as of 1 July 2019 and has
been set at 0.25%. German banks have to comply within the next 12 months. Based on data as of
31.12.2018 apoBank‘s anticyclical capital buffer raises from 0.01% to 0.23%. apoBank will meet the
new requirements without difficulties.
20Investor-Update.
Credit risks predominant.
20172014 20162015 2018
9.4 9.2 9.511.6
13.9
Risk weighted assets, in bn Euro
7,630
3,008
1,192
820
910
303 Retail
Other incl. states
Cororates
Institutions
Participations
Op Risk / CVA
Distribution of RWA, in bn Euro
Continued business growth, in particular in retail
and in corporate sector
Market risks in banking book only
21Investor-Update.
Diversified funding.
Commercial paper
Promissory notes
Registered bonds
Registered covered bonds
Benchmark bonds
Debt Issuance Programme (DIP):
apoObligationen (retail)
Bearer bonds
Covered bonds
Fixed coupon
ascending / descending
Variable coupon
with collar
callable
single right to cancel
multiple rights to cancel
Congruent funding of lending business
Expansion of product range provides
funding flexibility
Growing investor base
Perception in the capital markets as
reliable and regular issuer
Increasing share of covered bonds
FEATURESPRODUCTSTARGETS
> 300 institutional client
> 200 investors from the Geno-
Finanzgruppe
> 50 Partner banks
Funding of promotional loans via
KfW-Group and regional
promotional banks
> 458,000 retail clients,
associations and large corporates
Stable base of less volatile and
steadily growing deposits from
customers
PARTNER BANKSINVESTORSCUSTOMERS
22Investor-Update.
Part of a strong cooperative group.
BVR Institutssicherung GmbH guarantees in
accordance to EU-regulation deposits in a
volume of up to 100,000 Euro per head/client
A voluntary additional guarantee mechanism by
the BVR-Sicherungseinrichtung safeguards the
existence of member institutes (Institutsschutz)
that enter financial distress
The Institutsschutz covers:
all deposits and
Bearer bonds held by customers.
Fur ther in format ion:
www.bvr .de/SE
www.bvr - ins t i t u tss icherung .de
23Investor-Update.
Excellent ratings.
S&P Fitch Ratings (Group-rating)
Counterparty credit rating AA- Issuer default rating long-term AA-
Short-term debt A-1+ Issuer default rating short-term F1+
Covered bonds rating AAA Outlook Stable
Senior unsecured (preferred) AA-
Senior Subordinated (non preferred) A+
Outlook Stable
24Investor-Update.
Stable funding sources.
40,000
0
10,000
20,000
30,000
201720152014 2016 2018
in mn Euro
Senior unsecured
Demand deposits
Term and savings deposits incl.
subordinated property receipts
apoObligations (retail)
Covered bonds
Profit participation rights and
subordinated capital,
excl. property receiptsefe)
Public funding facilities
2014 2015 2016 2017 2018
1,247 1,632 3,190 3,674 5,125 Covered bonds
3,455 3,555 4,522 5,315 6,218 Cover assets*
1,992 1,872 1,214 1,641 1,093 Excess cover
* inc l . s t ipu la ted l iqu id excess cover
25Investor-Update.
Increased capital markets funding.
Constant share in capital markets funding to total
funding from 22% (end of 2018) to 21% (end of
2022)0.2
2019
0.3
9.9
0.5
0.2
2018
0.5
0.5
7.2
0.5
2020 2021 2022
9.7
10.1
11.211.7
0.6
6.1
0,7
3.6
5.1
3.2
3.5
3.2
5.7
0.33.2
7.5
Capital markets, long-term, secured
Capital markets, unsecured, long-termECB tender
Capital markets short-term
in bn Euro
26Investor-Update.
Highly granular cover pool.
Focus on high quality, residential
mortgages
Very granular cover pool, only domestic
exposure
Non-performing loans (debt in arrears,
cancelled, impaired) and customers, which
do not meet the required rating, are not
included in the cover pool according to
internal rules and are automatically
excluded from the cover pool in agreement
with the trustee
Internal apoBank rules regarding the
matching cover are stricter than the
requirements by law
Voluntary public commitment for an
extended collateralisation for mortgage
Pfandbriefe
Cover pool, in mn Euro
608
567
326
300k - 1 mn Euro
up to 300k Euro
1 mn Euro - 10 mn Euro
> 10 mn Euro
Total
4,453
5,952
5.3156.218
31.12.2017 31.12.2018
527
5,952Total
2,707
Apartments
Single/two family houses
Other, commercial
Multi family houses
1,413
1,305
Incl. 175 mil l ion Euro (2017);
265 mil l ion Euro (12/2018)
st ipulated l iquid excess cover
Cover pool by size
Cover pool by type
27Investor-Update.
High quality cover pool.
415
5 1570
560 545623
359267 304 290
627 648 613685
5 < 10 Y12 < 18 M< 6 M 4 < 5 Y3 < 4 Y6 < 12 M 2 < 3 Y18 M < 2 Y > 10 Y
1,836
2,425
1,057
Outstanding covered bonds
Cover pool
§ 28 PfandBG3 1 . 1 2 .
2 0 1 8
3 1 . 1 2 .
2 0 1 7
Seasoning 4.6 years 4.6 years
Average weighted
loan-to-value55.3% 55.4%
S&P analysis
(AAA rating)
Available over-
collateralisation17.21% 40.19%
Overcoll. consistent with
current (AAA) rating5.39% 5.07%
Unused notches 5 5
Maturity structure and f ixed-interest period,
in mn Euro, 31.12.2018 (§28 PfandBG)
28Investor-Update.
Covered bonds (Pfandbriefe).
0
200
400
600
800
1000
1200
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2029
Pfandbriefe LCR 1B Pfandbriefe LCR 2A Pfandbriefe Private Placements (non LCR)
Maturity profile, in mn Euro (30.04.2019)
29Investor-Update.
Contact.
ALEXANDER VAN ECHELPOEL RAINER VOGEL BARBARA ZIERFUß
Head of Treasury Trading Desk Investor Relations
+49 211 5998 9750 +49 211 5998 8914 +49 211 5998 4687
30Investor-Update.
Annex.
31Investor-Update.
Development of P&L.
Risk provis ioning f rom the operat ing
business, in mn Euro
Net commission income, in mn EuroNet interest income, in mn Euro
-5.7 -12.1
59.2
2014
39.2
20172015 2016 2018
31.9
698.3
2014 20172015
675.2
20182016
625.6 606.2 632.4
2014 20162015
139.0
2017 2018
123.5 133.0156.3 164.9
337.0
201820162014
249.2
2015 2017
304.8223.7 233.6
20182014 2015
95.3
2016
112.2135.9
2017
103.0 88.3
Operat ing prof i t before r isk provis ions,
in mn EuroRisk provis ioning with reserve
character, in mn Euro
20152014 2016
496.0
2017
530.1516.4
2018
478.6
597.6
Admin. expenses, in mn Euro
Taxes, in mn Euro
70.9
201720152014
98.6
20182016
94.379.3
50.4
201820172014 2015 2016
141.8 153.4 159.6132.8 113.4
61.0 62.9
2014 2015 2016
54.5
2017 2018
59.1 61.9
Operat ing result , in mn Euro Net prof i t af ter tax, in mn Euro
2016 / 2017 net reversal
Note: in 2014 8 mn Euro
extraordinary expenses
32Investor-Update.
Continuously growing customer business.
Members (in thsd)Customers (in thsd)Total assets, in bn Euro
382 397 416 436459
2014 2015 2016 20182017
106 108 110 111 113
20152014 20182016 2017
38.6
2014
35.1
20162015 2017 2018
36.441.4
45.4
33Investor-Update.
Customer loans and deposits dominate balance sheet.
211 211 222 222 233740 531 450 403 4120
5.000
30.000
35.000
5,7145,6814,520
5,568
2016
29,492
2014 2015 2017 2018
1,609
6,0585,533
2,131
27,037 27,893
34,652
32,013
2,381 3,017
Bank balances Securities OtherLoans to customers Fixed assets and participations
2018
1,769 1,783
23,588
1,8101,799 1,257
2014
1,296
2015
8,033
2016
1,124 1,144
8,105
26,037
4,202
1,165
27,448
1,291
7,214
21,737
2,9342,294
2017
2,739
6,930
25,797
5,876
8,950
Liabilities to banks Liabilities to customers OtherSecuritised liabilities Balance sheet equity
Assets, in mn Euro
Liabi l i t ies , in mn Euro
34Investor-Update.
Disclaimer
This document is for information purposes only. The
information contained in this presentation has been
thoroughly researched by Deutsche Apotheker- und
Ärztebank using exclusively sources that are considered
reliable. Nevertheless, Deutsche Apotheker- und
Ärztebank provides no assurance or guarantee that this
information is up-to-date, accurate or complete, accepts
no liabil ity for any damage or loss caused by or related
to the use of this information, and points out that this
information may be subject to change.
The estimates and evaluations ref lect the opinion of the
author at the time of preparation, and may be outdated
or have changed in another way as a result of later
developments.
The circumstances presented are for il lustration
purposes only and do not necessarily correspond to the
actual facts. Any statements on future profit or loss are
forecasts or model calculations. The actual market
development and the resulting profit or loss may differ.
This presentation is not a suitable substitute for an
individual consultation by a lawyer, auditor or tax adviser
that may be necessary in the light of the circumstances
of the individual case.
This draft may be neither reproduced nor passed on to
third part ies without the consent of Deutsche Apotheker-
und Ärztebank. Deutsche Apotheker- und Ärztebank
assumes no liabil ity for direct or indirect damage arising
from or related to the distribution and/or use of this
document.