#1SenFin 303-12/2015 State of Berlin Investor Presentation April 2017 Senatsverwaltung für Finanzen be-Berlin#2Berlin - An outstanding investment opportunity Content • Capital-political and cultural center Economic Base - attractive business location • Budget . - Capital Markets – professional treasury management Senatsverwaltung für Finanzen | Investor Presentation April 2017 © Scholvien Senatsverwaltung beBerlin W-SCHWIZ DLACERINBURG ASCHGABAT SKILL ALMADY EASEMEENT ERASMIANY 13 14 15 16 AND ASANGA FHOURSING HESSALAR CIMALAY KABUL FOR MAURIONS NEW MILII+38 KARACH COLOMEO +3 RANGUN +34 BHAKK W LIN THE TA Seite 2#3The Federal States (82.2 Mio inhabitants) Senatsverwaltung für Finanzen be-Berlin Schleswig-Holstein (2.9 Mio) Mecklenburg-Western Pomerania Hamburg (1.8 Mio) Bremen (0.7 Mio) Lower Saxony (7.9 Mio) North Rhine-Westphalia (1.6 Mio) Brandenburg (2.5 Mio) Saxony-Anhalt (2.2 Mio) Berlin (3.5 Mio) City States: Berlin, Bremen, Hamburg (17.9 Mio) Thuringia Hesse (6.2 Mio) (2.2 Mio) Rhineland-Westphalia (4.0 Mio) Saarland (1.0 Mio) Baden-Wurttemberg (10.9 Mio) Bavaria (12.8 Mio) January 2017. (In brackets: number of inhabitants; December 2015) Senatsverwaltung für Finanzen | Investor Presentation April 2017 Saxony (4.1 Mio) Seite 3#4Capital-political and cultural center Senatsverwaltung beBerlin Capital of the Federal Republic of Germany • Home to the German government and seat of parliament . Germany's largest City • . 8th largest State with 3.5mn inhabitants Embassies and consulates of 146 countries • Prime cultural and touristic location Senatsverwaltung für Finanzen | Investor Presentation April 2017 Wolfgang Scholvien Wolfgang Scholvien DEM DEUTSCHER VOLK Wolfgang Scholvien Seite 4#5Economic Base Senatsverwaltung für Finanzen Attractive location for internationally well-known companies UNIVERSAL KPMG be-Berlin B BAYER Bayer HealthCare Mú T SIEMENS M W The Coca-Cola Company Mercedes-Benz axel springer Mobility DB Networks Logistics CHARITÉ UNIVERSITÄTSMEDIZIN BERLIN SONY Senatsverwaltung für Finanzen | Investor Presentation April 2017 Seite 5#6Economic Base Diversified economic Base • Unique science and research . environment • Close cooperation between research and business in the fields of: Senatsverwaltung für Finanzen • media and communications • medical- and biotechnology • environmental technology • transportation technology • Vibrant tech-scene • Fastest rate of job creation in German • Start-up capital www.fu-berlin.de UNIVE Senatsverwaltung für Finanzen | Investor Presentation April 2017 be-Berlin www.berlin.de/dpa © WISTA-MANAGEMENT GMBH Seite 6#7Economic Base GDP growth above national average • In 2005 Berlin's GDP growth surpassed the national average for the first time after reunification • Real GDP growth outpaced German average for the past four years running 5% 4% 3% 2% 1% 0% -1% -2% • Nominal GDP increased a -3% solid 4.6 % from EUR 124.2 bn -4% in 2015 to EUR 129.5 bn in 2016 -5% -6% Senatsverwaltung für Finanzen | Investor Presentation April 2017 Senatsverwaltung für Finanzen be-Berlin 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -Berlin -National average Seite 7#80 new inhabitants 10.000 Senatsverwaltung für Finanzen | Investor Presentation April 2017 20.000 7.377 30.000 40.000 12.958 50.000 Economic Base Rising Population - 250.000 new Inhabitants since 2012 60.000 -7.836 18.353 17.990 15.341 -10.000 2007 2008 2009 2010 2011 2012 birth surplus internal migration 12.134 24.080 29.190 8.068 33.824 2013 2014 external migration 2015 Seite 8 -3.000 34.441 Senatsverwaltung für Finanzen be-Berlin 49.000#91991 207 151 January 2017. (2017 forecast) Senatsverwaltung für Finanzen | Investor Presentation April 2017 172 912 Budget 145 082 Personell slightly increasing in response to larger population 114 890 106 093 1996 2001 2006 2011 2016 106 734 2017 Seite 9 108 600 Senatsverwaltung für Finanzen be-i-Berlin#10Budget Budget surplus since 2012 Senatsverwaltung für Finanzen be-Berlin 28.422 27.699 28.313 26.957 27.566 26.280 revenues 26.140 26.837 24.713 26.060 25.000 23.837 24.507 22.747 22.568 22.965 expenditures 22.270 21.910 21.892 21.669 21.039 20.794 20.255 19.599 (deficit) 2009 2010 2011 2012 Million Euros. 2016 provisional budget figures Senatsverwaltung für Finanzen | Investor Presentation April 2017 2013 2014 2015 2016 2017 2018 2019 2020 Seite 10#11500 Senatsverwaltung für Finanzen | Investor Presentation April 2017 1.000 1.818 1.500 1.815 1.708 2.000 1.715 1.659 Budget Public Investment Preparing for the Future: Volume of public investment to rise to 2bn p.a. 2.500 actual I budget approbiation SIWA outflow SIWA outflow (estimate) 1.658 1.447 1.543 1.773 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 EUR mn (2009 until 2011 Konjunkturpaket II included) 1.534 1.377 1.265 2016 Seite 11 1.380 2017 1.681 1.706 1 917 48 107 350 Senatsverwaltung für Finanzen be-Berlin#12Capital Markets Well prepared for debt-brake era • Sustainable budget surplus ahead of time • Since 2014 budget surplus split between debt redemption and reserve fund for investments (SIWA) • Gross funding at EUR 7,2bn in 2017 - decreasing in the future 1200 800 400 • Total debt as of Dec 31st, 2016 EUR 59.4bn -400 Senatsverwaltung für Finanzen | Investor Presentation April 2017 -800 -283 1159 -488 Senatsverwaltung be Berlin Budget surplus since 2012 (EUR mn) -434 -496 -1159 -205 -101 968- -1200 2011 2012 2013 2014 2015 debt repayment net new SIWA 2016 Seite 12#13. Capital Markets Berlin's funding strategy • "Frequent issuer" with at least one benchmark per year • Extension of the existing benchmark curve Broadening of the investor base and increased investor relations activity Private placements and German domestic "Schuldscheine" important pillars of the funding strategy bn € 25,0 20,0 15,0 10,0 5,0 . Foreign currency issues with stand- 0,0 alone documentation Senatsverwaltung für Finanzen | Investor Presentation April 2017 21,6 Senatsverwaltung für Finanzen be-Berlin Maturity profile as of Dec. 31, 2016 12,1 11,6 12,7 up to 4 years > 4-7 years > 7 - 10 years > 10 years Seite 13#14Capital Markets Berlin's benchmark bonds • 0%-risk weighting in most European countries . Excellent credit quality with two issuer ratings: AAA with stable outlook by Fitch • Aa1 with stable outlook by Moody's ● ECB eligibility • Senatsverwaltung für Finanzen be-Berlin Appealing yield pick-up relative to comparable government bonds Series ISIN Volume in € Coupon Maturity 230 DE000 AONKUD 2 1,250,000,000 4.875% 26/06/17 389 DE000 A1PGNM 9 1,000,000,000 1.500% 28/08/20 352 DE000 A1KOFR 4 1,250,000,000 3.125% 17/08/21 226 DE000 AOKAV2 1 1,000,000,000 4.250% 25/04/22 457 DE000 A13R6X 4 1,100,000,000 0.750% 11/11/22 407 DE000 A1R06T 9 1,500,000,000 1.875% 12/06/23 474 DE000 A161WS 6 1,100,000,000 0.750% 08/09/23 435 DE000 A11QEJ 1 1,500,000,000 1.625% 03/06/24 459 DE000 A13R6Z 9 1,250,200,000 0.500% 10/02/25 465 DE000 A14J3F 7 1,000,000,000 0.250% 22/04/25 487 DE000 A16801 5 1,100,000,000 0.625% 20/03/26 488 DE000 A16802 3 1,450,000,000 1.000% 19/05/32 490 DE000 A2AAPH 7 1,050,000,000 0.625% 25/08/36 Senatsverwaltung für Finanzen | Investor Presentation April 2017 Seite 14#15Your contacts in Berlin Senatsverwaltung für Finanzen Susanne Reichenbach Head of Treasury Tel.: +49 (30) 9020 - 4185 E-Mail: [email protected] 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 be-i-Berlin Internet: www.berlin.de/sen/finanzen/vermoegen/geld-und-kreditgeschaeft/artikel.13670.php Senatsverwaltung für Finanzen | Investor Presentation April 2017 Seite 15#16Senatsverwaltung für Finanzen be-Berlin ,,be Berlin!" Our city is full of life - it's creative, energetic and cutting-edge. Berlin 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 on the Spree "the place to be." be-Berlin © 2016 Berlin Partner GmbH Senatsverwaltung für Finanzen | Investor Presentation April 2017 Seite 16