Raiffeisenlandesbank Oberoesterreich AG · Raiffeisenlandesbank Oberoesterreich AG . Austria's strongest regional bank . Investor presentation . Second quarter of 2019

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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

www.rlbooe.at

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

0

200

400

600

2014 2015 2016 2017 2018

270 282 260

558

368

0

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

0

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

0

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 0.0 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 E

UR

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-ordinated

9.5%

Funding

Page 27 Maturity structure of own issuances Raiffeisenlandesbank Oberoesterreich

in EUR M

0

200

400

600

800

1000

1200

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 >=2032

Covered Subordinated SeniorSource: 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

www.rlbooe.at

7. Contacts

Page 35

Contact details

Head of Treasury Financial Markets Christian Ratz Tel: +43 732 6596 25200 Email: [email protected]

Head of Correspondent Banking Jennifer Ann Radner Tel: +43 732 6596 23162 Email: [email protected]

Financial Markets Mario Ennsbrunner Tel: +43 732 6596 25160 Email: [email protected]

Head of Financial Markets Josef Buhl Tel: +43 732 6596 25180 Email: [email protected]

Senior Manager - Financial Markets Andreas Zak Tel: +43 732 6596 25182 Email: [email protected]

Financial Markets Reinhard Ilk Tel: +43 732 6596 25165 Email: [email protected]

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