#1STATE OF BERLIN - INVESTOR PRESENTATION Inaugural Sustainability Bond (2023) BERLIN ☑ O adogg#2Spliethoff Table of Contents Executive Summary State of Berlin - 01 Economy, Budget and Capital Markets 02 Sustainability Policy in Berlin. 03 04 Sustainability Bond Framework - State of Berlin Berlin's Inaugural Sustainability Bond B#3Executive Summary 01 State of Berlin - Economy, Budget and Capital Markets • Core Political, cultural and tourist centre GDP (2021): EUR 162.9bn • Budget surplus in 2022 of EUR 947mn (preliminary) • Benchmark issuer with an excellent credit rating 02 Sustainability Policy in Berlin • • 2016: Berlin Climate Protection and Energy Transition Act ➤ Reduction of CO2 emissions by 95 percent by 2045 2023: Adoption of the 2nd Berlin Energy and Climate Protection Program 2030 for implementation by 2026 03 Sustainability Bond Framework - State of Berlin Alignment with market standards (ICMA GBP, SBP, SBG) • Second Party Opinion provided by ISS ESG • Publication of allocation and impact reports 04 State of Berlin - Inaugural Sustainability Bond • February 2023 (anticipated size EUR 750mn) Marketing at the end of January and expected issuance in • Eligible green assets 2020-2022: EUR 224mn • Eligible social assets 2022: EUR 620mn • Expected allocation: approx. 25% (green) & 75% (social) Page 3 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B X#4Sören Spliethoff 01 STATE OF BERLIN - ECONOMY, BUDGET AND CAPITAL MARKETS#5State of Berlin - Economy Fact Sheet Population (2021): 3.67mn • Increase of 343,000 people since 2011 112 • Second youngest population of all Federal States 110 Area: 891 km² Government: SPD, B'90/Grüne, Die Linke GDP (2021): EUR 162.9bn • 2021 third strongest GDP growth rate in Germany © 2021 4.6% share of German GDP GDP per capita (2021): EUR 44,436 108 106 104 102 100 Growth of the working population which is subject to social security contributions (Federal States) • Higher than the national average since 2019 98 Jan 2019 Jul 2019 Jan 2020 Jul 2020 Page 5 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 BY BW NW -TH BE Jan 2021 Jul 2021 Jan 2022 HH Jul 2022 HB B#6State of Berlin - Economy Economic Data Dynamic location • Average annual GDP growth of 2.6% from 2016 to 2021 (Germany: 0.9%) Excellent science and research landscape 6% 4% 2% ● Science location Adlershof: Germany's largest science and technology park with approx. 1,000 companies 0% Start-ups in Berlin • Berlin among the TOP 10 global locations for financing in 2021 (volume 2022: EUR 4.9bn) Approx. 500 new start-ups founded in 2022 -2% -4% -6% Page 6 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 Annual growth rate of GDP па 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Berlin Germany B#7State of Berlin - Budget Budget Surplus in 2022 39000 Consolidation phase 38000 37745 37379 • Total financing surplus from 2012 to 2019: EUR 5,694mn 37000 36019 36000 35000 36432 35149 35897 Stabilization policy • Deficit totaling EUR 1,553mn during the 2020 and 2021 pandemic years EUR mn 34000 32901 33000 32000 31000 2022 - Year of many challenges 31470 30000 • Renewed financing surplus in 2022 (preliminary): EUR 947mn 29000 2020 2021 2022 2023 (Plan) Page 7 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 -Expenditures (adjusted) -Revenues (adjusted) B#8State of Berlin - Budget Adjusted Revenues and Expenditures 2022 (EUR mn) Adjusted Revenues: EUR 37,379mn Investment allocations, other investment income 852 Administrative income, economic activity, etc. 1,998 Consumptive allocations 5,335 Page 8 Other revenues 62 Taxes, federal supplementary allocations 29,131 Adjusted Expenditures: EUR 36,432mn Interest expenditures, repayment of public- sector debt 985 Investment expenditures 3,390 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 Personnel expenditures 10,942 Consumptive expenditures 21,114 B#9State of Berlin - Budget Growth in Investment Expenditures Investments in EUR mn 4500 4000 3500 3000 2500 Special fund,,Growing City“ (SIWA): Funded by past budget surpluses Capital outflow up to EUR 600mn per year 344 283 375 375 572 2000 48 107 238 358 3862 3390 1500 2913 1000 2164 2148 1681 1706 1599 1773 500 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Investments State Budget SIWA Page 9 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 (preliminary) (expected) B#10State of Berlin - Budget GDP-Growth and Debt Development EUR bn Page 10 180 160 140 120 100 80 60 40 20 67% 70% nominal GDP Debt - -Debt to GDP ratio (rhs) 60% 50% 40% 30% 20% 10% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#11State of Berlin - Capital Markets Benchmark Issuer Annual funding volumes - return to repayment path • 2021: EUR 5,700mn fixed-interest bonds floating rate notes promissory notes loans 0.2 2.4 100% 3.5 1.5 2022: EUR 5,390mn 90% 13.2 20.8 • 2023: EUR 5,490mn forecasted 29.2 80% Excellent credit rating - three issuer ratings with stable outlook 70% 13.1 • AAA from Fitch Ratings 60% 50% Aa1 from Moody's 40% 83.3 • AAA from Scope Ratings 69.2 63.7 30% 0% risk weighting in most European countries 20% 10% Bonds qualify as a Level 1 asset for the Liquidity Coverage Ratio (LCR) 0% 2021 2022 overall portfolio Page 11 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B1#12State of Berlin - Capital Markets Maturity Profile EUR mn 6000 5384 5409 5324 5181 5077 5000 4000 3000 2000 1000 0 4414 3312 Inaugural Sustainability Bond 2532 2376 2484 2326 1947 1828 967 933 1575 1593 1361 879 lili 428 outstanding debt ■funding 2022 1030 as of Dec. 31, 2022 1560 214 130 89 146 100 10 25 565 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 Page 12 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B X#13© spuno 02 SUSTAINABILITY POLICY IN BERLIN#14Sustainability Policy in Berlin Timeline Berlin Program for Sustainable Development (BENE) Page 14 Berlin Energy und Climate Protection Program 2030 (BEK 2030) Frame concept „Berlin Sustainable Finance- Strategy" Further development of the BEK 2030 (implementation period until 2026) 2015 2016 2018 2021 Berlin Climate Protection and Energy Transition Act and Sustainability Profile for the State of Berlin ,,Indicator Report 2021 Sustainable Development in Berlin" and Inventory Report „The 17 Sustainability Goals in Berlin" Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 2022 2023 2021 until 2026: Development of a Berlin Sustainability Strategy 2030 B#15Sustainability Policy in Berlin Sustainability Strategy 17 United Nations Sustainable Development Goals (UN SDGs) firmly anchored in Berlin's actions Overview of the State's initiatives: . • • • • • BerlinStrategy 3.0 Berlin Program for Sustainable Development - BENE Indicator Report 2021 - Sustainable Development in Berlin Inventory Report „The 17 Sustainability Goals in Berlin“ Framework 2022 for the Berlin Sustainable Finance- Strategy Further Development of the BEK 2030 - Implementation until 2026 1 NO POVERTY 6 CLEAN WATER 2 ZERO HUNGER SSS GOOD HEALTH AND WELL-BEING AND SANITATION 7 AFFORDABLE AND CLEAN ENERGY DECENT WORK AND ECONOMIC GROWTH 11 SUSTAINABLE CITIES AND COMMUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 4 QUALITY EDUCATION 5 GENDER EQUALITY 9 INDUSTRIE, INNOVATION UND INFRASTRUKTUR 10 REDUCED INEQUALITIES CLIMATE ACTION 14 16 PEACE, JUSTICE AND STRONG INSTITUTIONS 17 PARTNERSHIPS FOR THE GOALS LIFE BELOW WATER 15 LIFE ON LAND Page 15 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#16Page 16 Sustainability Policy in Berlin Ecological Sustainability Goal of Berlin's Energy Transition Act: Reduction of CO2 emissions by 95 percent by 2045 35000 . Continuous further development with the involvement of a scientific expert consortium and the public 30000 Berlin Energy and Climate Protection Program 2030 as a total strategy Setting of sector targets for the reduction of CO2 emissions Bundling and concretization of measures according to fields of action (e.g. energy, buildings and transport) Monitoring: Introduction of a digital information and monitoring system Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 25000 20000 15000 10000 5000 0 CO₂ emissions in 1,000 + CO2 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026 CO2 emissions 2029 savings needed to reach the 95% target 2041 2044 B#17Sustainability Policy in Berlin Social Sustainability • Goal: Acting for the benefit of Berlin's population in order to enable broad social and cultural participation in the growing city and • ensure equal rights for all in terms of social standards, health and work Selected Key Areas Poverty reduction Healthy diet Health promotion Educational support for social participation Equal opportunities Fighting unemployment Wage setting and compliance with labor laws Page 17 Sample Measures Berlin relief package to cushion high energy prices Canteen Future Berlin Sports participation program Youth Culture Card Berlin Promotion of women in public institutions in accordance with the State Equal Opportunity Act Integration of long-term unemployed into the labor market through the solidary basic income EUR 13 Berlin minimum wage and minimum standards of ILO core labor standards for public procurement Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#18Obezikus 03 SUSTAINABILITY BOND FRAMEWORK - STATE OF BERLIN#19Sustainability Bond Framework Market Standards and Key Components Market Standards • ICMA Green Bond Principles (GBP) • . ICMA Social Bond Principles (SBP) ⚫ ICMA Sustainability Bond Guidelines (SBG) Target: Establish guidelines and 'best practice' patterns Promotion of comparability, transparency and disclosure • 1. Use of Proceeds Refinancing of eligible projects with clear environmental and social benefits Defining excluded sectors 2. Project Evaluation and Selection Process Defining sustainability and budgetary criteria • Defining a process for selecting the appropriate projects Framework State of Berlin 3. Management of Proceeds Refinancing of projects from up to three previous financial years 4. Reporting • Allocation report of bond proceeds to eligible green and social expenditures • Impact report for measurable sustainability impact Page 19 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#20Sustainability Bond Framework External Verification by Second Party Opinion Provider I. Alignment with the ICMA GBP, SBP and SBG II. Sustainability Quality of the Eligibility Criteria Contribution to 12 UN SDGs 1 POVERTY 2 ZERO HUNGER GOOD HEALTH AND WELL-BEING QUALITY EDUCATION AFFORDABLE AND CLEAN ENERGY ISS ESG confirms, that the Framework is in line with the ICMA GBP, SBP and SBG Use of Proceeds Project Evaluation and Selection Process Management of Proceeds Reporting ISS ESG confirms positive sustainability contributions and a well managed process to avoid social and environmental risks GENDER EQUALITY 11 SUSTAINABLE CITIES AND COMMUNITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION DECENT WORK AND ECONOMIC GROWTH 10 REDUCED INEQUALITIES 13 CLIMATE ACTION 15 LA ON LAND III. Green, Social and Sustainability Bonds' Link to issuer's Sustainability Strategy ISS ESG confirms that project categories are consistent with Berlin's sustainability goals Second Party Opinion Page 20 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B X#21Sustainability Bond Framework Use of Proceeds for Eligible Green Projects Project Categorie (ICMA GBP) Renewable Energy Energy Efficiency Pollution prevention and control Environmentally sustainable management of living natural resources and land use Clean Transportation (technical screening criteria of the EU taxonomy for 6.3, 6.13, 6.14 and 6.15 fulfilled) Climate change adaptation Green buildings Description Promoting the use and generation of renewable energy Installation of energy efficient technologies Reduction of air pollution and greenhouse gas control Sustainable redesign of public sealed open spaces and parks, stormwater management in public places, and forest conversion to increase resilience to climate change Improvement of the bicycle infrastructure, Conversion of the bus fleet to e-mobility, New construction, expansion, repair and maintenance of public transport, Establishment and operation of publicly accessible charging infrastructure for electric vehicles Measures to promote green roofs and facades New construction and renovation of public buildings according to efficiency standards Page 21 7 out of 10 ICMA GBP Project Categories in the Framework Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#22Sustainability Bond Framework Use of Proceeds for Eligible Social Projects Projektkategorie (ICMA SBP) Affordable basic infrastructure Access to essential services Employment generation, and programs designed to prevent and/or alleviate unemployment stemming from socioeconomic crises Food security and sustainable food systems Socioeconomic advancement and empowerment Description Ensuring social participation, e.g. access to public transport for citizens at risk of poverty Measures to prevent health problems and to create equal education and opportunities for children and adolescents Combating (long-term) unemployment and underemployment, as well as economic development, taking into account economic, social and environmental sustainability Enabling access to healthy, regional and sustainable food (e.g. free school lunches for all pupils in grades 1-6) and avoiding food waste Promotion of neighborhood cohesion, family assistance and reduction of discrimination Page 22 5 out of 6 ICMA SBP Project Categories in the Framework Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#23Sustainability Bond Framework SPO: Contribution to 12 UN SDGs Significant Contribution ZERO GOOD HEALTH HUNGER AND WELL-BEING 7 AFFORDABLE AND CLEAN ENERGY Example project Free school lunch (grade 1-6) Example project Rapid covid tests for Berlin schools and daycare centers Page 23 1 ARMUT KEINE Limited Contribution HOCHWERTIGE 4 BILDUNG Example project Conversion of Gas-powered Street Lighting 10 INEQUALITIES REDUCED Example project Special Olympics World Games Berlin 2023 Example project Construction, operation and maintenance of refugee shelters 8 MENSCHENWÜRDIGE ARBEIT UND WIRTSCHAFTS- WACHSTUM Example project 5 GESCHLECHTER GLEICHHEIT Nursery and playground renovation program NACHHALTIGE/R 12 KONSUM UND PRODUKTION Example project Promotion of women in research and teaching 11 SUSTAINABLE CITIES AND COMMUNITIES 13 ACHANE CLIMATE 15 LIFE ON LAND Example project VBB Bus & Rail accompanying service Example project Battery Storage for Renewable Energies Example project Forest Conversion to Increase Resilience Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 Example project Solidary basic income program Example project Berlin Food Strategy B X#24Sustainability Bond Framework Project Evaluation and Selection Process Identification of eligible projects Structured documentation, submission and consolidation • • Interministerial Working Group continuous cooperation through permanent members Senate Department of Education, Youth and Family Senate Department of Home Affairs, Digitisation and Sports • Senate Department of Integration, Labor and Social Affairs • • Senate Department of Urban Development, Building and Housing • • • Senate Department of Environment, Mobility, Consumer and Climate Protection • Senate Department of Economy, Energy and Business • Senate Department of Justice, Diversity and Anti-Discrimination Page 24 • • Senate Department of Science, Health, Care and Equality Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 Examination of project eligibility and final selection Coordination Group "Sustainable Financing" . Senate Department of Finance - Credit Management Unit (lead, internal and external communication) • Senate Department of Finance - Units of the Budget Division responsible by section . Senate Department of Environment, Mobility, Consumer and Climate Protection - Environmental Policy Unit B X#25Sustainability Bond Framework Project Evaluation and Selection Process • • Sustainability Criteria Sustainable expenditures must be attributable to one of the ICMA project categories Projects contribute to at least one of the UN SDGs Sustainability impact of the projects can be described qualitatively and quantitatively ➤ Submission of a total of 51 projects by the interministerial working group Selection of 36 eligible projects for the inaugural sustainability bond by the coordination group Budget Criteria • Cash outflow can be quantified and clearly allocated to projects within the final budgetary statement Personnel expenses are excluded (main group 4) • Only net expenditures of the State of Berlin (i.e., no consideration of third-party funds, e.g., allocations from the federal government, EU funding or complementary funding by promotional banks) • Exclusion of expenditures made on the basis of federal laws or EU regulations Page 25 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B X#26Sustainability Bond Framework Management of Proceeds and Allocation Report Refinancing of up to three past financial years Financial year Financial year Financial year 2020 2021 2022 Issue of the for green expenditures bond (2023) Financial year 2022 Page 26 for social expenditures Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 Complete allocation to the eligible projects and publication of an allocation. report within twelve months after issuance Transparent and traceable use of expenditures guaranteed via the internal accounting system B#27Sustainability Bond Framework Impact Reporting Reporting on measurable sustainability impacts of eligible projects using indicators, if available: Published no later than one year after issuance of the Sustainability Bond → Examples of potential impact indicators in the Sustainability Bond Framework Project categorie Renewable energies Energy efficiency Access to essential services Socioeconomic advancement and empowerment Impact indicator (example) Number and output of subsidised photovoltaic systems Reduction of CO2 emissions Number of daycare centre and playground renovations Number of persons advised within the framework of the Integrated Social Program Page 27 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#28Bezirksamt Köpenick 04 BERLIN'S INAUGURAL SUSTAINABILITY BOND#29Berlin's Inaugural Sustainability Bond Distribution of 36 Eligible Projects to Leading SDG SDG 8 Decent Work and Economic Growth 5% SDG 5 Gender Equality 1% SDG 4 Quality Education 3% Page 29 SDG 3 Good Health and Well-Being 15% 18 Social Projects SDG 10 Reduced Inequalities 47% SDG 2 Zero Hunger 27% SDG 1 No Poverty 2% Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 SDG 13 Climate Action 70% 18 Green Projects SDG 11 Sustainable Cities and Communities 5% SDG 7 Affordable and Clean Energy 22% SDG 15 SDG 6 Clean Water and Sanitation Life on Land 2% 1% B#30Berlin's Inaugural Sustainability Bond Volume and Pre-allocation by Project Category Project Category (ICMA SBP) Share Volume 2022 (EUR mn) Pre- Allocation (EUR mn) Project Category (ICMA GBP) Share Volume 2020-22 (EUR mn) Pre- Allocation (EUR mn) Affordable basic infrastructure 6% 52.7 46.8 Renewable Energy 1% 5.6 5.0 Access to essential services 12% 102.7 91.2 Energy Efficiency 5% 43.0 38.1 Employment generation, and 3% 28.3 25.2 Environmentally sustainable 2% 15.3 13.6 programs designed to prevent and/or management of living natural alleviate unemployment stemming resources and land use from socioeconomic crises Food security and sustainable food systems 20% 167.7 148.9 Climate change adaptation 0% 0.7 0.6 Socioeconomic advancement and empowerment 32% 268.6 238.6 Clean Transportation 19% 159.8 142.0 18 Social Projects 73% 620.0 550.7 18 Green Projects 27% 224.4 199.3 ↓ Total volume of 36 eligible projects: EUR 844.4 mn Page 30 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 Expected bond volume: EUR 750.0 mn B☑#31O simbiothy Example 1: Ramp-up Phase of E-mobility Bus Fleet Description: Conversion of Germany's largest public bus fleet from diesel to electric engines (already 138 electric buses in operation, 90 more to be delivered shortly) • Goal: By the end of 2030, all buses will be electrically powered. Additionally, parallel conversion or new construction of the necessary infrastructure. Impact: • Around 1 million users every working day in more than 1,500 vehicles • Reduction of noise pollution Reduction of CO2 and NOx emissions UN SDG 7 AFFORDABLE AND CLEAN ENERGY SUSTAINABLE CITIES AND COMMUNITIES 13 CLIMATE ACTION ICMA Green Bond Project Category Clean Transportation Expenditures 2020-2022(e) 38,517,751 € Budget chapter/Budget title (2022) 0730/54045 und 89113 Seite 31 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#32Sören Spliethoff Example 2: Conversion of Gas-powered Street Lighting Description: • Electrification of previously gas-powered street lights Energy- and CO2-saving retrofitting while preserving the historic townscape and the traditional appearance of the street luminaires Impact: CO2 savings of approx. 9,200 tons per year after conversion of all 8,400 gas luminaires (Decrease of approx. 91 percent without taking into account the use of electricity generated from renewable energy sources) UN SDG AFFORDABLE AND CLEAN ENERGY 13 CLIMATE ACTION ICMA Green Bond Project Category Energy Efficiency Expenditures 2020-2022(e) 19.836.464 € Budget chapter/Budget title (2022) 0740/54049 und 72014 0710 / 88304 Seite 32 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#33Example 3: Battery Storage for Renewable Energies Description: Support for the purchase and installation of grid-serving, secondary electricity storage systems, provided that a photovoltaic system is purchased and commissioned at the same time UN SDG AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION finecki ICMA Green Bond Project Category Renewable Energy Impact: • Incentive to generate climate-friendly electricity and increase the share of renewable energies even in times of low sun and wind Electricity storage relieves the electricity grid through higher on-site consumption Expenditures 2020-2022(e) 4.373.328 € Budget chapter / Budget title (2022) 0750/89336 Seite 33 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#34ONO O Patrick P. Palej Example 4: Construction of a New Tram Line (Adlershof II) Description: Closing a gap in the tram network between Schöneweide and Adlershof • Improved connection to the rapid transit and regional rail system as well as central access to the Science City Adlershof All five new stops are barrier-free Impact: Fast, direct connections between Johannisthal and Köpenick and the north-south tangent route Decrease of individual transport Measurement of CO2 avoidance in t/p.a. UN SDG 7 AFFORDABLE AND CLEAN ENERGY SUSTAINABLE CITIES AND COMMUNITIES 13 CLIMATE ACTION ICMA Green Bond Project Category Clean Transportation Expenditures 2020-2022(e) 13.551.841 € Budget chapter / Budget title (2022) 0730/89102 Seite 34 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#35Peter Fuchs Example 5: Forest Conversion to Increase Resilience . Description: Conversion of unnatural, unstable pine stands into stable mixed leaf forests on approx. 10,000 ha of Berlin's forests • Forest conversion through the principle of natural regeneration (Self-seeding of deciduous trees with supportive care) Impact: Adaptation of forests to climate change • Reduction of forest damage Converted forest area in ha UN SDG LIFE ON LAND ICMA Green Bond Project Category Environmentally sustainable manage- ment of living natural resources Expenditures 2020-2022(e) 4.576.825 € Budget chapter / Budget title (2022) 0751/54109 Seite 35 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#36Robert Kneschke Example 6: Free School Lunch Description: Free, warm and healthy school lunch for schoolchildren (1st-6th grade), independent of the socio-economic status of the family • Simultaneous introduction of binding standards with regard to organic quality, seasonality, sustainability as well as ecological and fair trade Impact: . Healthy and nutritious diet as an important prerequisite for good school performance and equal opportunities in education Take-up rate is 85% to 95% (Ratio of portions distributed to the number of pupils) UN SDG ZERO 2 HUNGER 10 REDUCED INEQUALITIES SSS ICMA Social Bond Project Category Food security and sustainable food systems Expenditures 2022(e) 165.434.067€ Budget chapter / Budget title (2022) 2710/67180; 1010 / 67180; 1024/51420; 3700-3705/51420 Seite 36 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#37Saras66 Example 7: Integrated Social Program Description: • Promotion and further development of social care in Berlin together with the welfare associations Visiting and accompanying services, social services for migrants, services for people with disabilities, help for the homeless and offenders, debt counselling Impact: Variety of the individual offers promoted: Impact is measured by means of individual target agreements and performance reviews Overarching indicator: Total number of people reached by the offers (2020: 121,912) UN SDG NO POVERTY 10 REDUCED SUSTAINABLE CITIES INEQUALITIES AND COMMUNITIES ICMA Social Bond Project Category Socioeconomic advancement and empowerment Expenditures 2022(e) 27.620.461€ Budget chapter / Budget title (2022) 1150 / 68431 Seite 37 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#38© 4masik Example 8: Baby Guides Description: • Voluntary and free support and counselling for families before and after birth by trained professionals Trustworthy and professional contact persons for mothers and fathers through 45 baby guides in all 18 Berlin maternity wards Impact: Systemic advisory and guidance function Proportion of so-called "Baby Guides" cases in all 18 Berlin maternity wards at 31% in 2021 External scientific evaluation and impact analysis in 2023 UN SDG 3 GOOD HEALTH AND WELL-BEING GENDER EQUALITY 10 REDUCED INEQUALITIES ICMA Social Bond Project Category Access to essential services Expenditures 2022(e) 1.470.576 € Budget chapter/Budget title (2022) 0920 / 67101 Seite 38 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#397090 HAT SC PO Elda Carin Example 9: Free public transport for pupils Description: . Free student ticket for all Berlin students at general-education schools and vocational secondary schools with full-time classes • Free use of all buses, trams, underground and suburban trains and ferries in the Berlin AB fare zone Impact: Before introduction: Use by approx. 17.5% of all pupils due to their entitlement to subsidies from the education and participation package After introduction: Use of the school ticket by approx. 97% of eligible pupils UN SDG REDUCED INEQUALITIES SUSTAINABLE CITIES AND COMMUNITIES ICMA Social Bond Project Category Affordable basic infrastructure Expenditures 2022(e) 51.897.285 € Budget chapter / Budget title (2022) 0730/54045 und 54081 Seite 39 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#40© talanis Example 10: Special Olympics World Games Berlin 2023 Description: Support for the world's largest inclusive sporting event for around 7,000 athletes with intellectual and multiple disabilities • Simultaneous establishment of long-term structures in Berlin that enable the participation of people with intellectual disabilities in sport and society Impact: Increasing the level of organisation of people with disabilities in sports clubs • Evaluation of the event according to the criteria of the urban return on investment, which also takes into account the social impact in addition to key business figures UN SDG 3 GOOD HEALTH REDUCED AND WELL-BEING INEQUALITIES ICMA Social Bond Project Category Socioeconomic advancement and empowerment Expenditures 2022(e) 17.301.339 € Budget chapter/Budget title (2022) 051054113 und 68426 Seite 40 Senate Department of Finance - Investor Presentation for Berlin's Inaugural Sustainability Bond - January 2023 B#41Your contact in Berlin Elke Badack-Hebig Head of Treasury Tel.: +49 30 9020-1612 E-Mail: [email protected] Christian Thürmer Senior Funding Manager Tel.: +49 30 9020 - 1613 E-Mail: [email protected] Mirko Voit Senior Funding & Asset Manager Tel.: +49 30 9020 - 1614 E-Mail: [email protected] Sören Spliethof Website: http://berlin.de/sustainability-bond Refinitiv: FINBE Bloomberg: BERGER RESP LAEN B#42Disclaimer: This presentation of the State of Berlin for the issuance of sustainability bonds is for information purposes only. The information in this presentation is based on our own information and carefully selected sources deemed reliable. However, no guarantee can be given for their correctness, completeness and up-to-dateness. The presentation is not, and should not be construed as, an offer or solicitation to sell state treasury bonds („, Landesschatzanweisungen“) of the State of Berlin or an offer to underwrite, subscribe for or otherwise acquire such bonds. The presentation is not an investment recommendation. It does not serve as a basis for investment decisions, as prospective investors must take their own independent investment decisions based on the information current at the time of investment. BERLIN ☑