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1Investor-Update.
apoBank – The Leading Bank in
the German Healthcare Market.
September 2020
2Investor-Update.
Overv iew
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
1
3
4
The changing hea l thcare marke t .2
Agenda.
Risk management , c red i t qua l i t y, f und ing .5
3Investor-Update.
apoBank – At a glance.
Close to our customers.Our 2,408 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.481,070 customers, of which are 116,224
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:
14.2 %
Total
assets:
56.1 bn Euro
Net prof it
after tax:
32.7mn Euro
June 2019
4Investor-Update.
Overv iew
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
1
3
4
The changing hea l thcare marke t .2
Agenda.
Risk management , c red i t qua l i t y, f und ing .5
5Investor-Update.
Background.
Future supply needs and thus growing expenses enlarge health care market sustainably.
Technical progress: Usage of medical-technical innovations.
Demographic development: Significant ageing of society increases weight of morbidity.
Increasing health care expenses, growing health awareness.
6Investor-Update.
The German health economy – an overview (2019).
Further sectors
Industrial health economyMedical supply
199.4 bn Euro81.2 bn Euro
91.4 bn Euro
Every 8th Euro gross value added is
generated in the health economy.
Every 6th job is located in the health
economy.
372 bn Euro
gross value added
7.5 mn employees
Source: Gesundheitswirtschaft, Fakten & Zahlen, Ausgabe 2019,
Bundesministerium für Wirtschaft und Energie (BMWi)
Sectors of value creation
In comparison: The total automotive sector
counts 2 mn employees
7Investor-Update.
Health care market as a growth engine.
291
357
415
166
216242
2010 2016 2020
Health care expenditures, bn Euro thereof statutory health care expendutiures, bn Euro
+ 3.6 % p.a.
Main growth engine is the so called secondary health care market.
Share of GDP
2018:
12.1* % p.a.
Source: Statistisches Bundesamt, Gesundheitsausgabenrechnung: 2015, 2017 and 2020 estimates and forecasts, respectively.
*Forecast BMWi, Gesundheitswirtschaftliche Gesamtrechnung 2018
8Investor-Update.
Health care market turns more female.
Men Women Men Women
29 %71 % 38 % 62 %
1975 2019
Source: Statistisches Bundesamt
Share of medical students Share of business founders
Source: apoBank / Zi
2018/2019
38
%
62
%
9Investor-Update.
Feminisation leading to new working models.
Appropr ia te ch i ldcare oppor tun i t i es and f l ex ib le work ing t ime mode ls a re mos t impor tan t i ssues to
imp rove work ing cond i t ions .
Appropriate childcare opportunities92 %Flexible working time
& part-time models90 %Alleviation through
delegation and digitisation76 %Job sharing in leading
positions70 %
What needs to be changed in order to reconcile family and work for health care professionals?
Source: Kind und Kittel. Eine Studie zur Vereinbarkeit von Familie und Beruf in den Heilberufen (2019), apoBank
10Investor-Update.
Investors discover health care market as investment target.
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.
11Investor-Update.
Overv iew
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
1
3
4
The changing hea l thcare marke t .2
Agenda.
Risk management , c red i t qua l i t y, f und ing .5
12Investor-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
13Investor-Update.
apoBank: Deeply rooted in the health care market.
Unique cooperation and client
access
Historically grown access to
health care professionals,
intensive cooperation with
chambers, pension funds and
professional organisations
High reputation in particular in
financing issues
Deep knowledge of the health care
market and of health care
professionals
Profound knowledge of cash flows
and needs of health care
professionals
Better risk assessment than
competitors
Tailor-made solutions for health care professionals
Holistic customer service covering the whole range from lending
business to start-up financings
Value added offers beyond banking products
DNA
14Investor-Update.
apoBank‘s strategic focus.
Expansion of private wealth management
Differentiated customer services via new sales model
Upgrading digital customer experiences
Private
clients
Larger product range, i.e. arranger for financings
Differentiated and individual product offerings: standard, when sufficient;
tailor-made, when advisable
Corporate
clients
Close networking to jointly shape the health care market
Management of payment transactions, investment consulting, interest and
currency management, structured financings, telematics infrastructure
Professional
associations
Tapping new customer groups, i.e. charity funds, churches
More cooperation to enlarge product offerings
Custody services, investment consulting, risk management
Institutional
investors
Efficiency improvements to support growth strategy
New IT-platform, end-to-end digitisation, implementation of a data
warehouse
Optimisation of lending and securities processes
15Investor-Update.
Expansion of an integrated service spectrum.
Start-up
consulting
Practice
optimisation
Platform for
health care
professionals
Services
Banking/non-banking
Non-banking
services
Zahnpraxis der ZukunftRental of fully equipped dental practice
and support in all start-up phases
Practice optimisationHolistic analysis of practices to identify
additional potential as well as
optimisation possibilities
univivaBroad range of seminar and event
offerings
MARKOM – Marketing solutions for
health care professionals
Further development and
sales activities of non-
banking services
Integration in sales concept,
accompanying health care
professionals throughout
their life
16Investor-Update.
Overv iew
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
1
3
4
The changing hea l thcare marke t .2
Agenda.
Risk management , c red i t qua l i t y, f und ing .5
17Investor-Update.
Stable revenue basis.
Risk provisioning with reserve
character, in mn Euro
Operating expenditures,
in mn EuroOperating revenues,
in mn Euro
95 10388
57
5
2016 20182017 2019 HY
2020
810 817 869 919
499
2016 20192017 2018 HY
2020
561 594 635701
396
2016 2017 2018 2019 HY
2020
-6-12
3244 44
2016 2017 2018 2019 HY
2020
61 62 63 64
33
20182016 2017 HY
2020
2019
Risk provisioning from the
operating business, in mn Euro
Net prof it after tax,
in mn Euro
2016 and 2017 net re lease
160133
113 117
56
HY
2020
2016 2017 2018 2019
Operating result,
in mn Euro
Risk provisioning with reserve character
diminishes net profit, but serves for taxed capital accumulation
18Investor-Update.
Sustainable growth strategy in the customer business.
Lending volumes,
in bn EuroNew lending business,
in bn Euro
2015 20192016 2017 2018
6.3 6.86.47.1
7.6
2016 HY
2020
20192017
7.2
2018
8.0 7.8
9.7 9.7
Volume securit ies accounts,
private clients, in bn Euro
3.1
4.6
2016
4.9
14.1
2.6
6.3
4.8
HY 2020
6.6
15.6
3.8
2017
4.7
27.9
7.1
17.3
2018
4.3
4.6
7.5
19.1
2019
4.7
7.9
19.5
30.1
32.9
35.536.7
Real-estate loans
Start-up loansCorporate clients
Investment and private loans
19Investor-Update.
Overv iew
Bus iness mode l and s t ra tegy.
Bus iness pe r formance.
1
3
4
The changing hea l thcare marke t .2
Agenda.
Risk management , c red i t qua l i t y, f und ing .5
20Investor-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)
22.2%
45.7%
20.5%
10.2%
1.4%
Retail clients
33.5 bn Euro
10.7%
0.1%
1.3%
87.9%
Not rated
Financial instruments
6.3 bn Euro
Professional assoc.,
large corporates
5.8 bn Euro
39.4%
15.5%
33.3%
10.8%
0.9%
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
88% of retail exposure and 84% of exposure to professional
associations and large corporates are investment-grade rated
At 1.3% NPL-Ratio is at low level (2019: 1.2%)
Forbearance Ratio: 1.1%
Coverage Ratio: 43.0%
D
21Investor-Update.
Satisfying regulatory capital position.
2016
22.6%
26.1%
21.8%
18.3%
14.2
19.5%
2017
16.7%
2018
16.5
15.2
2019
15.1
HY 2020
Regulatory capital ratiosRegulatory capital, in mn Euro
Equity ratio Common equity tier 1 ratio
324 275
2016 2017 2018
233
2019 HY 2020
2,465 2,528 2,543 2,519 2,547
194
1,103
1,181
149
1,124
1,0171,173
1,154
1,100 1,129
1,222 1,225
Reserves, other
Supplementary capital Members’ capital contributions
Total capital
2019 2020
CET1 Equity ratio CET1 Equity ratio
Overall capital
requirement8.26% 11.78% 7.7% 11.75%
Anticycl. buffer 0.03% 0%
Capital conser-
vation buffer2.5% 2.5%
Total SREP
capital requirem.5.75% 9.25% 5.2% 9.25%
Pillar 2 requirem, 1.25% 0.7% 1.25%
Rillar 1 requirem. 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
31.12.2019 30.6.2020
Leverage Ratio 4.4 % 4.1 %
Liquidity Coverage Ratio 140 % 145 %
Net Stable Funding Ratio 113 % 114 %
22Investor-Update.
Credit risks predominant.
9.5 11.6
2016 2017 2018 2019
13.9
HY 2020
15.3 16.9
Risk weighted assets, in bn Euro
9,5864,098
1,243811769
411
Retail
Cororates
Institutions
Other incl. states
Participations
Op Risk
Distribution of RWA, in bn Euro
Continued business growth, in particular in retail
and in corporate sector
Market risks in banking book only
23Investor-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
> 480,000 retail clients,
associations and large corporates
Stable base of less volatile and
steadily growing deposits from
customers
PARTNER BANKSINVESTORSCUSTOMERS
24Investor-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
25Investor-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 negative
Senior unsecured (preferred) AA-
Senior Subordinated (non preferred) A+
Outlook negative
26Investor-Update.
Stable funding sources.
50.000
0
20,000
10,000
40,000
30,000
2016 2017 2018 2019 HY 2020
in mn Euro
Demand deposits
Term and savings deposits incl.
subordinated property receipts
Covered bonds
apoObligations (retail)
Senior unsecured
Profit participation rights and
subordinated capital,
excl. property receipts)
Public funding facilities
2016 2017 2018 2019 HY 2020
3,190 3,674 5,125 6,326 6,816 Covered bonds
4,522 5,315 6,218 7,151 7,821 Cover assets*
1,214 1,641 1,093 825 1,005 Excess cover
* inc l . s t ipu la ted l iqu id excess cover
27Investor-Update.
Increased capital markets funding.
Overall, constant share in capital markets funding of
18-19%
In 2020 temporarily increase in capital markets
funding to 26% due to participation in ECB TLTRO 3
in bn Euro
2021 2022 2023 2024
2.6
0.30.30.3 0.3
0.30.2
14.5
2020
10.19.7
10.1
6.7
3.0 2.9
4.5
6.8 6.5
2.9
0.2
6.5
2.8
0.2
7.0
0.29.8
EZB tender
Capital markets, short-term
Capital markets, unsecured, long-term
Capital markets, secured, long-term
28Investor-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
898
658
348
Total
> 10 mn Euro
7,556
1 mn Euro - 10 mn Euro
up to 300k Euro
300k - 1 mn Euro
5,651
7,151
31.12.2019 30.06.2020
7.821
634
Apartments
Multi family houses
Single/two family houses
Other, commercial
Total
1,820
3,618
1,484
7,556
Incl. 185 mil l ion Euro (12/2019);
265 mil l ion Euro (6/2019)
st ipulated l iquid excess cover
Cover pool by size
Cover pool by type
29Investor-Update.
High quality cover pool.
70
540
20
500
190
648
381 397 443363
770860 846
< 6 M 3 < 4 Y6 < 12 M 12 < 18 M 18 M < 2 Y
2,741
> 10 Y4 < 5 Y2 < 3 Y 5 < 10 Y
1,0931,020
2,638
1,117
Outstanding covered bonds Cover pool
§ 28 PfandBG3 1 . 1 2 .
2 0 1 9
3 0 . 6 .
2 0 2 0
Seasoning 4.7 years 5.3 years
Average weighted
loan-to-value55.4% 55.4%
S&P analysis
(AAA rating)
3 0 . 9 .
2 0 1 9
3 1 . 3 .
2 0 2 0
Available over-
collateralisation15.24% 9.4%
Overcoll. consistent with
current (AAA) rating4.96% 6.7%
Unused notches 5 5
Maturity structure and f ixed-interest period,
in mn Euro, 30.6.2020 (§28 PfandBG)
30Investor-Update.
Covered bonds (Pfandbriefe).
Maturity prof ile, in mn Euro (30.6.2020)
0
200
400
600
800
1.000
1.200
2021 2028 20302020 20242022 2023 2025 2026 2027 2029 > 2030
Covered bonds LCR 2ACovered bonds LCR 1B Covered bonds PP (non-LCR)
31Investor-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
32Investor-Update.
Annex.
33Investor-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
2018
43.5
-5.7
2016 2017 2019
-12.1
31.9
HY
2020
43.4
606.2
2016 20182017 2019
625.6 632.4691.1
HY
2020
382.3
2019
156.3139.0
175.3
2016 2017 2018
164.9
HY
2020
103.2
249.2223.7
20192016 20182017
233.6 217.7
HY
2020
103.6
2016 20182017 2019
95.3 103.088.3
57.1
HY
2020
4.6
Operat ing prof i t before r isk provis ions,
in mn EuroRisk provis ioning with reserve
character, in mn Euro
374.6
2016 2017 2018
530.1
2019
516.4597.6
683.9
HY
2020
Admin. expenses, in mn Euro
Taxes, in mn Euro
2017 2018
98.6
2016
70.9
2019
50.4 53.0
HY
2020
22.9
132.8 117.1
2016
159.6
2017 20192018
113.4
HY
2020
55.6
201920182016 2017
61.9 64.161.0 62.9
HY
2020
32.7
Operat ing result , in mn Euro Net prof i t af ter tax, in mn Euro
2016 / 2017 net reversal
34Investor-Update.
Continuously growing customer business.
Members (in thsd)Customers (in thsd)Total assets, in bn Euro
397 416 436 459481
20182015 2016 2017 2019
110 111 113 116 116
20192017 20182016 HY
2020
HY
2020
2016
41.4
2017 2018 2019
38.645.4
49.656.1
Number of customers not avai lab le as of
30.6.2020.
35Investor-Update.
Customer loans and deposits dominate balance sheet.
222 222 233 247 247450 403 412 470 4883,017
37,291
2016
32,013
2017 2018 2019 HY 2020
2,381
29,492
38,287
4,520
34,652
5,558 5,7966,0588,405
5,800
8,698
5,714
Securities Fixed assets and participationsBank balances Loans to customers Other
2019
2,9341,4671,868
2018 HY 20202016
1,799
8,105
26,037
14,443
4,2021,144 1,165
1,257
8,950
5,8767,462
1,291
9,636
29,23730,990
1,8811,810
6,930
27,449
2017
7,396
25,797
1,348
Liabilities to customersLiabilities to banks Balance sheet equitySecuritised liabilities Other
Assets, in bn Euro
Liabi l i t ies , in bn Euro
36Investor-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 prof it 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.
