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1Investor-Update.
apoBank – The Leading Bank in
the German Healthcare Market.
November 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 2,452 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.470,300 customers, of which are 114,452
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:
15.0% %
Total
assets:
48.0 bn Euro
New lending
business:
3.7bn Euro
Net prof it
after tax:
31.9mn Euro
June 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.
Strategic outlook: Facilitating health
Growth strategy in
the banking
business
Services beyond
banking
Modern and
flexible IT
apo-portals:Career, seller, Start-ups, Pimp my Pocket
Asset management / securities business
Start-up financings
Swift, digital and specialised processes
Institutional investors
Corporate business
7Investor-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.
8Investor-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
9Investor-Update.
The healthcare sector is changing.
digitalisation
employment
co-operation
industrialisation
healthcare across
sectors
internationalisation capitalisation
10Investor-Update.
Larger units with increasing importance.
∆
2010/
2018
-4%
-12%
+6%
-8%
+126%
+71%
15,362
2,4902,156
60,441
52,167
17,063
2,821
68,361
59,257
52,207
18,429 18,825
2018
19,043
61,515
49,208
67,022
51,831
20,044
n.a.1,654
50,479
2010 2012 2015
19,877
2016
65,039
2017
70,916
8,326
69,84468,830
11,060
1,938
69,860
62,524
18,608
51,679
13,826
18,826
69,498
Doctors in single surgeries Doctors in medical centresDoctors in professional associations
Number of single surgeries Number of professional associations Number of medical centres
11Investor-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
12Investor-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.
13Investor-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 €
14Investor-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 €
15Investor-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.
16Investor-Update.
Stable revenue basis.
Risk provisioning with reserve
character, in mn Euro
Operating expenditures,
in mn EuroOperating revenues,
in mn Euro
11295 103
88
39
20172015 2016 2018 HY1
2019
854 810 817 869
466
2015 201820172016 HY1
2019
550 561 594 635
331
201820162015 2017 HY 1
2019
39
-6-12
32 36
2015 2016 2017 HY1
2019
2018
59 61 62 63
32
2015 2016 HY1
2019
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
153 160133
113
60
20172015 HY1
2019
2016 2018
Operating result,
in mn Euro
Risk provisioning with reserve character
diminishes net profit, but serves for taxed capital accumulation
17Investor-Update.
Sustainable growth strategy in the customer business.
Lending volumes,
in bn EuroNew lending business,
in bn Euro
6.4
HY1
2019
2015 2016 20182017
6.86.37.1
3.7
6.9
2015 2016 2017 2018 HY1
2019
7.2
8.0 7.8
8.8
Volume securit ies accounts,
private clients, in bn Euro 14,1 15,6 17,3 18,2
6,36,6
7,17,4
4,94,8
4,74,7
2,63,1
3,83,9
20182015 2016 2017
32.9
HY1 2019
26.127.9
30.1
34.2
5.1
2.1
6.2
12.7
Corporate clients
Investment and private loans Real-estate loans
Start-up loans
18Investor-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.
19Investor-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)
1.4%18.9%
24.1%
46.8%
8.8%Retail clients
31.8 bn Euro
21.5%
74.0%
3.8%0.8%
Not rated
Financial instruments
6.4 bn Euro
Professional assoc.,
large corporates
5.2 bn Euro
11.0%
11.5%
25.5%
51.6%
0.4%
AAA-AA
A 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
90% of retail exposure and 89% of exposure to professional
associations and large corporates are investment-grade rated
At 1.2% NPL-Ratio is at low level (2018: 1.3%)
Forbearance Ratio: 1.2%
Coverage Ratio: 41.5%
D
20Investor-Update.
Satisfying regulatory capital position.
21.8%
26.1%
2018
22.0%
2015
18.3%
19.5%
15.0
26.1%
22.6%
2016 2017
16.7%
16.2
HY1 2019
Regulatory capital ratiosRegulatory capital, in mn Euro
Equity ratio Common equity tier 1 ratio
936
383 324 275 233
1,092 1,124
1,017
2015 HY1 20192016
2,551
1,100
1,154
2,465
1,195
2017
1,129
1,181
2018
198
1,158
2,4112,528 2,543
Supplementary capital
Reserves, other
Members’ capital contributions
Total capital
2019 2020
CET1 Equity ratio CET1 Equity ratio
Overall capital
requirement8.26% 11.76% 8.5% 12.0%
Anticycl. buffer 0.01% 0.25%
Capital conser-
vation buffer2.5% 2.5%
Total SREP
capital requirem.5.75% 9.25% 5.75% 9.25%
Pillar 2 requirem, 1.25% 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
Leverage ratio: 4.6% (31.12.2018: 4.8%)
Liquidity coverage ratio: 123% (31.12.2018: 144%)
Net stable funding ratio: 112% (31.12.2018: 111%)
21Investor-Update.
Credit risks predominant.
2015 2016 HY1 2019
9.5
20182017
9.211.6
13.915.7
Risk weighted assets, in bn Euro
8,963
889
1,172
3,238
1,214
228 Retail
Participations
Cororates
Institutions
Other incl. states
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
22Investor-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
> 465,000 retail clients,
associations and large corporates
Stable base of less volatile and
steadily growing deposits from
customers
PARTNER BANKSINVESTORSCUSTOMERS
23Investor-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
24Investor-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 negative
25Investor-Update.
Stable funding sources.
20,000
40,000
10,000
0
30,000
2015 2016 2017 2018 HY1 2019
in mn Euro
Demand deposits
Covered bonds
Senior unsecured
apoObligations (retail)
Term and savings deposits incl.
subordinated property receipts
Profit participation rights and
subordinated capital,
excl. property receiptsefe)
Public funding facilities
2015 2016 2017 2018 HY1 2019
1,632 3,190 3,674 5,125 5,831 Covered bonds
3,555 4,522 5,315 6,218 6,719 Cover assets*
1,872 1,214 1,641 1,093 888 Excess cover
* inc l . s t ipu la ted l iqu id excess cover
26Investor-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
27Investor-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
693
669
334> 10 mn Euro
up to 300k Euro
Total
300k - 1 mn Euro
1 mn Euro - 10 mn Euro
4,838
6,534
31.12.2018
6,719
30.06.2019
6,218
1.558
556Multi family houses
Apartments
Single/two family houses
Other, commercial
Total
2,970
6,534
1,450
Incl. 185 mil l ion Euro (6/2019);
265 mil l ion Euro (12/2018)
st ipulated l iquid excess cover
Cover pool by size
Cover pool by type
28Investor-Update.
High quality cover pool.
5 21100
545 596
212 210309 328 314 276
691773
622772
< 6 M 18 M < 2 Y 3 < 4 Y6 < 12 M 4 < 5 Y12 < 18 M 5 < 10 Y2 < 3 Y > 10 Y
1,143
3,000
2,634
Outstanding covered bonds Cover pool
§ 28 PfandBG3 0 . 6 .
2 0 1 9
3 1 . 1 2 .
2 0 1 8
Seasoning 4.6 years 4.6 years
Average weighted
loan-to-value55.5% 55.3%
S&P analysis
(AAA rating)
3 0 . 6 .
2 0 1 9
3 1 . 1 2 .
2 0 1 8
Available over-
collateralisation15.13% 17.21%
Overcoll. consistent with
current (AAA) rating5.99% 5.39%
Unused notches 5 5
Maturity structure and f ixed-interest period,
in mn Euro, 30.6.2019 (§28 PfandBG)
29Investor-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 prof ile, in mn Euro (30.09.2019)
30Investor-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
31Investor-Update.
Annex.
32Investor-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
-12.1
2015 2016 2017 2018
39.2
HY1
2019
-5.7
31.9 36.1
2017 HY1
2019
2015
625.6
2016 2018
675.2606.2 632.4
357.9
133.0 139.0
HY1
2019
2015 20172016 2018
156.3 164.9
90.5
HY1
2091
304.8
20182015 2016 2017
249.2 223.7 233.6
135.1
20172015
103.095.3
2016 HY1
2019
2018
112.288.3
38.8
Operat ing prof i t before r isk provis ions,
in mn EuroRisk provis ioning with reserve
character, in mn Euro
516.4496.0
2015 HY1
2019
2016 2017 2018
530.1597.6
322.6
Admin. expenses, in mn Euro
Taxes, in mn Euro
2015 20182016
98.6
2017
70.9
HY1
2019
94.3
50.428.3
159.6
2015 HY1
2019
2016 2017 2018
153.4 132.8 113.4
60.3
62.961.059.1
2015 20182016 HY1
2019
2017
61.9
31.9
Operat ing result , in mn Euro Net prof i t af ter tax, in mn Euro
2016 / 2017 net reversal
33Investor-Update.
Continuously growing customer business.
Members (in thsd)Customers (in thsd)Total assets, in bn Euro
397 416 436 459 470
HY1
2019
2015 2016 2017 2018
108 110 111 113 115
2015 HY1
2019
2016 2017 201820162015
41.4
HY1
2019
2017 2018
36.4 38.6
45.448.0
34Investor-Update.
Customer loans and deposits dominate balance sheet.
2.131 2.381 3.017
211 222 222 233 247531 450 403 412 426
5.681 5.714
34.652
20162015 2017
5.290 5.929
36.129
27.893
6.058
32.013
5.558
H1 2019
4.520
2018
29.492
Bank balances Fixed assets and participationsLoans to customers Securities Other
6.930
4.2025.876 6.675
1.124 1.144
1.783 1.799 1.257 1.291 1.4141.810
H1 2019
2.934
28.693
1.165
26.037
2.739
2015 2016 2017 2018
7.2148.105
8.950 9.433
1.806
27.44925.797
23.588
Securitised liabilitiesLiabilities to banks OtherBalance sheet equityLiabilities to customers
Assets, in bn Euro
Liabi l i t ies , in bn Euro
35Investor-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.
