#1Senatsverwaltung Finanzen Berlin 2013 State of Berlin Investor Presentation June 2013 O Land Berlin/Thie Senatsverwaltung für Finanzen be-Berlin This document contains neither an offer to sell securities nor an invitation to submit an offer to buy securities. The information contained herein may be completed and supplemented at any time; it does not constitute an investment recommendation nor should it serve as a basis for investment decisions. The State of Berlin assumes no responsibility or reliability for the completeness or correctness of the information contained herein. | Page 1#2Senatsverwaltung 1 Finanzen Berlin 2013 Content - Metropolis – political and cultural centre, attractive business location Budget - sustainable consolidation Senatsverwaltung be Berlin SLEADERIMBING TASCIENT 13 14 15 16 MAURITIUS - Capital markets – professional treasury management © Scholvien Berlin - An outstanding investment opportunity KARACH COLAMED 36 KANGUN +14 SHAEA MAN RANGE THEAIR FLAIR TAKARTA Investor Presentation June 2013 | Page 2#3Senatsverwaltung Finanzen Berlin 2013 Metropolis Berlin Capital of the Federal Republic of Germany and home to the German government Largest German city with 3.5m inhabitants and 8th largest state by inhabitants Political centre with numerous organisations close to the government as well as embassies and consulates of 146 countries Prime cultural and touristic location in Europe next to London and Paris Wolfgang Scholvien Wolfgang Scholvien Senatsverwaltung beBerlin DEM DEUTSCHER VOLK Wolfgang Scholvien Investor Presentation June 2013 | Page 3#4Senatsverwaltung Finanzen Berlin 2013 Senatsverwaltung beBerlin für Finanzen Successful structural transformation Efficient cooperation between leading research institutes and the private sector Media and communications Medical- and biotechnology Environmental technology Transportation technology Important location for internationally well-known companies UNIVERSAL® Mercedes-Benz KPMG BAYER Bayer HealthCare SIEMENS M W Investor Presentation June 2013 | Page 4#5Senatsverwaltung Finanzen Berlin 2013 Growth in real GDP After the reunification, Berlin's GDP growth has surpassed the national average for the first time in 2005 Nominal GDP increased a solid 2.4% from EUR 101.1bn in 2011 to EUR 103.6bn in 2012 In real terms the State of Berlin was less affected by the economic down-turn (-0.6%) than Germany as a whole (-5.1%) in 2009 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% Senatsverwaltung be Berlin 2005 2006 2007 2008 2009 2010 2011 2012 -Berlin -National average Investor Presentation June 2013 | Page 5#6Prime infrastructure Favourable office and industrial space Unique science and research environment (four universities plus ten technical colleges and institutions of higher education with a total of more than 147,000 students) ■ Science and technology park Berlin- Adlershof with national importance thanks to eleven independent research institutes, six science institutes of Humboldt-University, 425 technology- oriented companies ▪ The transport infrastructure of the capital belongs to the most modern and most efficient in Europe. O Land Berlin/Thie Günter Steffen Senatsverwaltung Finanzen Berlin 2013 Senatsverwaltung beBerlin © Berlin Partner/FTB-Werbefotografie Investor Presentation June 2013 | Page 6#7Senatsverwaltung Finanzen Berlin 2013 Revenues and Expenditures 22 574 Senatsverwaltung be Berlin 22 568 21 910 21 840 21 892 Expenditures 21 039 20 860 20 794 19 599 17 339 Revenues 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 April 2013. Million Euros. Investor Presentation June 2013 | Page 7#8Senatsverwaltung Finanzen Berlin 2013 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2005 2006 2007 2008 2009 2010 2011 2012 April 2013. Investor Presentation June 2013 | Page 8 207 151 194 950 183 863 166 885 153 575 145 082 135 891 126 038 114 890 109 870 106 693 105 000 Public Sector Employees Senatsverwaltung be Berlin#9Senatsverwaltung Finanzen Berlin 2013 Expenditure Increase 2001 to 2011 Senatsverwaltung beBerlin Hessen Saarland Bayern Rheinland-Pfalz Nordrhein-Westfalen Schleswig-Holstein Hamburg Niedersachsen Baden-Württemberg Sachsen Brandenburg Mecklenburg-Vorp. Sachsen-Anhalt 28,9% 27,9% 25,0% 24,1% 21,3% 21,1% 20,6% 17,1% 14,6% 14,2% 10,5% 10,2% 9,8% Thüringen 8,9% Bremen 8,9% BERLIN 2,4% April 2013. Average 17,9% Investor Presentation June 2013 | Page 9#10Senatsverwaltung Finanzen Berlin 2013 Senatsverwaltung für Finanzen Financial Restructuring Process according to Stability Law Stability Council Federal and State Ministers of Finance 1 (18) Financial Restructuring Agreement bei Berlin 1 Decrease of Net Borrowing 2 Naming the Measures 3 Bi-yearly Reports Yearly Reports on Budget Indicators Imminent Budget Distress Deficit per capita Net New Borrowings p.c. Debt Level p.c. Interest-Tax-Relation April 2013. 1 including Federal Minister of Economics Evaluation Threshold Values 2010 2020 Investor Presentation June 2013 | Page 10#11Senatsverwaltung Finanzen Berlin 2013 Senatsverwaltung beBerlin Budget discipline Successful financial policy through consolidation, growth of tax revenues and reinforcement of own revenues EUR 283mn debt repayment in 2012 and no net new borrowing after 2014 Reduction of gross funding from EUR 8.3bn in 2013 to approx. EUR 6.7bn in 2016 Net New Borrowing (actual and expected results in EUR mn) 1800 1421 1402 1159 1400 1000 600 200 509 485 35 -200 2008 2009 2010 2011 2012 2013 2014 2015 -283 -251 -600 ■ Total debt as of Dec 31st, 2012: EUR 61.9bn -1000 -964 actual results budget 2012/2013; financial planning up to 2015 Investor Presentation June 2013 | Page 11#12Senatsverwaltung Finanzen Berlin 2013 283 1 402 1 159. Net New Borrowing: Cutback until 2015 Senatsverwaltung be Berlin Reduction of debt level April 2013. Million Euros. 2012 according to the temporary balance sheet. until 2015 according to planning of the Senate German debt brake 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investor Presentation June 2013 | Page 12#13Senatsverwaltung f Finanzen Berlin 2013 Capital markets Berlin's funding strategy Senatsverwaltung beBerlin Maturity profile "Frequent issuer" with up to two €mn benchmarks per year 35,000 30,000 ■ Extension of the existing benchmark 25,000 curve 20,000 Broadening of the investor base and increased investor relations 15,000 Foreign currency issues with stand- 10,000 alone documentation 5.000 0,000 Private placements and German domestic "Schuldscheine" remain up to and including 4 years longer than 4 including 7 years important pillars of the funding strategy longer than 7 longer than 10 including 10 years years Dec. 31, 2012 Investor Presentation June 2013 Page 13#14© Senatsverwaltung Finanzen Berlin 2013 Senatsverwaltung be Berlin Berlin - An outstanding investment opportunity 0%-risk weighting in most European countries - Excellent credit quality with two issuer ratings: - AAA with stable outlook by Fitch Aa1 with negative outlook by Moody's following the outlook change for the German sovereign rating ECB eligibility Appealing yield pick-up relative to comparable government bonds Year 2004 2005 Denotation LSA A 190 LSA A 196 ISIN DE000A0BNQX DE000A0DRH7 Volume in € 2.000.000.000 1.750.000.000 2005 LSA A 204 2006 2007 2007 LSA A 214 LSA A 226 LSA A 230 DE000A0EY7Z 1.750.000.000 DE000A0H5VC 1.500.000.000 DE000A0KAV2 1.000.000.000 4,250% 25.04.2022 DE000A0NKUD 1.250.000.000 4,875% Coupon Maturity 4,250% 15.09.2014 3,750% 23.03.2015 3,125% 14.09.2015 4,125% 24.05.2016 26.06.2017 2009 LSA A 264 DE000A0XYS7 1.250.000.000 3,500% 13.02.2014 2011 2011 2011 LSA A 336 LSA A 340 LSA A 352 DE000A1H3YM 1.000.000.000 3,000% DE000A1H3YR 1.000.000.000 2,875% 08.09.2016 DE000A1K0FR 1.250.000.000 3,125% 17.08.2021 29.03.2016 Investor Presentation June 2013 | Page 14#15Finanzen Berlin 2013 Senatsverwaltung Secondary spread performance Senatsverwaltung be Berlin 120 80 60 40 ичират bp do 0 -40 40 11-05 -80 80 -120 -160 11-11 12-05 ساسه 12-11 13-05 BERGER 3.75% 3/15 DBR 2.25% 9/21 wwwwww BERGER 3.125% 8/21 iBoxx € Sub-Sovereigns 3-5 -BERGER 1.75% 1/17 -DBR 3.75% 1/17 iBoxx € Sub-Sovereigns 5-7 OBL 1.75% 10/15 Berlin offers an attractive yield pick-up vs. Bunds while trading less volatile than European peers Investor Presentation June 2013 | Page 15#16Senatsverwaltung Finanzen Berlin 2013 Your contacts in Berlin Susanne Reichenbach Head of Treasury Tel.: ++49 30 - 9020 4185 E-Mail: [email protected] Senatsverwaltung beBerlin Elke Badack-Hebig Senior funding manager Tel.: ++49-30 - 9020 4187 E-Mail: [email protected] Mirko Voit Senior funding manager Tel.: ++49 30 - 9020 4188 E-Mail: [email protected] Wolfgang Scholvien Internet: www.berlin.de/sen/finanzen/vermoegen/geld-und-kreditgeschaeft/artikel.13670.php Investor Presentation June 2013 | Page 16#17Senatsverwaltung Finanzen Berlin 2013 Senatsverwaltung be Berlin City campaign „be Berlin!" Our city is full of life - it's creative, ener-getic and cutting-edge. This city attracts people from all over the world. In an environment of unparalleled diversity, it captures the attitudes and lifestyles of people from over 180 nations and really makes the city by the Spree "the place to be." the place to be be-Berlin ©2008 Berlin Partner GmbH Investor Presentation June 2013 | Page 17