#1STATE OF BERLIN – - INVESTOR PRESENTATION April 2024 BERLIN ☑ O adogg#2Spliethoff Table of Contents Executive Summary 01 Berlin Political and Cultural Centre - 02 - Economy Dynamic Growth 03 - State Budget Fiscal Sustainability 04 Capital Markets - Professional Financial Management B X#3Executive Summary 01 State of Berlin - Political and Cultural Centre • Capital City and Federal State • Cluster of excellence with worldwide renowned top universities • Strong attractive force for young professionals 03 State Budget - Fiscal Sustainability •2023: Lower financing deficit than planned • High investment quota • Stabilisation of debt ratio 02 Economy - Dynamic Growth • ⚫ GDP (2023): EUR 193.2bn · ⚫ GDP growth (2023): +1.6% . • Centre of the German start-up landscape 04 Capital Markets - Professional Financial Management Reliable benchmark issuer on the capital markets • • • Excellent credit rating by three rating agencies Inaugural sustainability bond in February 2023 Page 3 Senate Department of Finance - Investor Presentation April 2024 B#4Sören Spliethoff 01 BERLIN POLITICAL - AND CULTURAL CENTRE#5Berlin Capital City and Federal State Hamburg 1.9mn Schleswig-Holstein 3.0mn Bremen Mecklenburg-Western Pomerania 0.7mn Lower Saxony 8.1mn North Rhine-Westphalia 18.1mn Rhineland Palatinate 4.2mn Saarland 1.0mn Page 5 1.6mn Brandenburg Saxony-Anhalt 2.6mn Saxony 2.2 mn Hesse Thuringia 6.4mn 2.1 mn Baden-Wuerttemberg 11.3mn 4.1mn City State with federal state and municipal tasks Examples of federal state tasks Examples of municipal tasks Court system Higher Education Civil registry office Kindergarden Social and youth assistance Fact Sheet Population: 3.78mn (+473,000 since 2011) • Second youngest population. of all federal states Structure: 12 city districts with 96 localities Area: 891 km² Water surface: 58.9 km² Forest area: 157.8 km² Bavaria 13.4mn Police Senate Department of Finance - Investor Presentation April 2024 B#6· Berlin Political and Cultural Centre • Political decision-making centre with seat of the Federal Government, the German Parliament and the Federal Council Science and research landscape with four universities, 11 public and 30 private universities of applied sciences Embassies and consulates of 159 nations . Main cultural location and tourist destination Page 6 Senate Department of Finance - Investor Presentation April 2024 Wolfgang Scholvien DEM DEUTSCHER VOLK Wolfgang Scholvien Wolfgang Scholvien B X#7Page O narimbur 02 ECONOMY - DYNAMIC GROWTH#8Economy GDP Growth above the National Average GDP (2023) • With EUR 193.2bn share of 4.7% of German GDP • . 2023 third strongest GDP growth rate in Germany - as a service hub, less affected by increases in energy costs Average annual GDP growth of 2.67% from 2013 to 2023 (Germany: 1.09%) GDP per capita (2023) Annual growth rate of GDP 6% 4% 2% 0% -2% -4% • EUR 51,209 (Germany: EUR 48,750) -6% • Higher than the national average since 2019 -8% GDP growth (2023) • Berlin: +1.6% ● Germany: -0.3% Page 8 Senate Department of Finance - Investor Presentation April 2024 2007 2008 2009 2010 2011 2012 2013 2014 Berlin 2015 2016 Germany 2017 2018 2019 2020 2021 2022 2023 B#9Economy Outstanding Start-up Development • • • • Top position in a comparison of the Federal States with 35% of newly invested capital in 2023 Approx. 270 new start-ups founded in 2023 Berlin colleges and universities as nucleus for start-ups (universities of excellence) Support for the start-up scene through venture capital from IBB Ventures which is part of Berlin's state owned development bank 59 of the top 100 start-ups in Germany are based in Berlin 20 15 10 5 Page 9 Senate Department of Finance - Investor Presentation April 2024 Annual investment in Berlin start-ups in $ billion 0 2016 2017 2018 2019 2020 2021 2022 2023 Berlin Deutschland B#10Economy 58 State-Owned Companies - The State as an Economic Player (1) Diversified investment portfolio for public services of general interest - from housing to transport to healthcare Cumulated key figures according to the shareholding quota (2022) · • • Annual result: EUR 781mn Capital expenditure: EUR 6,114mn Employees in FTE: 56,174 Report on state-owned companies 2023 IBB Unternehmensverwaltung AÖR Largest asset: Investitionsbank Berlin AÖR Development Bank of the State of Berlin Housing construction and real estate promotion, business promotion (focus on SMEs) and labour market promotion Annual result (2022): EUR 20.77mn Berliner Verkehrsbetriebe (BVG) AÖR Main area of business: Local public transport services One of the central focuses of climate protection in Berlin Annual result (2022): EUR 3.43mn • An average of approx. 2.7 million journeys per day • Page 10 Senate Department of Finance - Investor Presentation April 2024 B#11Economy 58 State-Owned Companies - The State as an Economic Player (2) Berlin Energie und Netzholding GmbH (BEN) Owner of Stromnetz Berlin GmbH (electricity grid) since 2021 Investments in 2022: ~ EUR 285mn Annual result (2022): EUR 20.04mn Flughafen Berlin Brandenburg GmbH 2022/2023: Early redemption of bank loans • 2024/2025: No equity injections by the shareholders • 2026: Achievement of capital market viability under the condition of the last capital injection by the shareholders of EUR 660mn 2027/2028: Expected achievement of the consolidated profit threshold Annual result (2022): EUR -90.07mn Berliner Wasserbetriebe AÖR Berlin's water supply and the discharge and treatment of wastewater • Generation and supply of electricity, gas and heat by its subsidiary Berliner Stadtwerke Annual result (2022): EUR 277.19mn State-owned housing companies . . Six housing companies: Total portfolio of 356,790 flats Newly completed flats in 2022: 5,969 Launch of 84 new construction projects in 2021/2022 for the construction of 9,351 new flats Accumulated annual results (2022): EUR 313.92mn Page 11 Senate Department of Finance - Investor Presentation April 2024 B1#12Economy Socialisation - Status of the Debate Referendum 2021 "Expropriation of Deutsche Wohnen & Co" • • Approval with 57.6% of the votes cast Referendum on a resolution - Berlin Senate and House of Representatives not legally bound by the referendum (Art. 62 (1) Berlin Constitution) Expert committee • Socialisation is constitutionally possible Preparatory work for the Socialisation Framework Act Development of general criteria for the socialisation of public service companies. • Evaluation of the Berlin Court of Audit Financial viability of a socialisation depends on the amount of compensation Socialisation with reduction or de-dynamisation of rents only in the case of compensation far below the market value or high subsidies from the state budget Final report of the expert committee Report of the Berlin Court of Audit Page 12 Senate Department of Finance - Investor Presentation April 2024 B#13Economy Excellent Science and Research Environment Science City Adlershof • · Germany's biggest science and technology park (Revenue 2022: EUR 3.6bn) 1,270 companies and scientific institutions with 28,000 employees and 90 global market leaders WISTA-MANAGEMENT GMBH Berlin TXL - The Urban Tech Republic ⚫ In development: Research and industrial park for up to 1,000 companies from the urban technology sector Page 13 Senate Department of Finance - Investor Presentation April 2024 Opress.siemens.com Tegel Projekt GmbH MEMENTS Siemensstadt Square ⚫ Future address for start-up companies, . • research laboratories and high-tech manufacturing plants Planned investments up to EUR 600mn Re-commissioning of the Siemens railway by 2030 B X#14114 112 110 108 106 104 102 100 98 Economy Strong Labour Market Growth of the working population which is subject to social security contributions (Federal States) Jan 2019 Mar 2019 May 2019 Jul 2019 Sep 2019 Nov 2019 Bavaria Jan 2020 Senate Department of Finance - Investor Presentation April 2024 Mar 2020 May 2020 Jul 2020 Baden-Wuerttemberg Sep 2020 Nov 2020 Jan 2021 Mar 2021 Page 14 May 2021 North Rhine-Westphalia Jul 2021 Sep 2021 Nov 2021 -Thuringia Jan 2022 Mar 2022 Berlin May 2022 Jul 2022 Bremen Sep 2022 Nov 2022 Jan 2023 Mar 2023 May 2023 -Hamburg Jul 2023 Sep 2023 Nov 2023 B#15Sören Spliethoff 03 STATE BUDGET - FISCAL SUSTAINABILITY#16State Budget Financial Balances Year-on-Year Consolidation phase 38000 • Total financing surplus from 2012 to 2019: 37000 36,019 EUR 5,694mn 36000 Years of crisis • Increasing expenditure due to the crisis Deficit totaling EUR 1,553mn during the 2020 and 2021 pandemic years Budget policy faces challenges million EUR 35000 34000 32,901 33000 32000 31,470 31000 37,423 37,437 36,673 35,687 35,897 30000 . Financing surplus in 2022: EUR 750mn 2020 2021 2022 2023 (preliminary) • Use of reserves in 2023 -Expenditures (adjusted) -Revenues (adjusted) Page 16 Senate Department of Finance - Investor Presentation April 2024 B#17State Budget Structure of Expenditures 2023 (preliminary) Expenditures Consumptive expenditures Personnel expenditures Actual Figures 2023 (EUR mn) Total expenditures 2023: EUR 39.362mn Other expenditures Interest expenditures 2% 1% 21,313 Investment expenditures 10% 11,463 Allocation to Investment expenditures 3,910 reserves 3% Interest expenditures 736 Expenditures (adjusted) 37,437 Allocation to reserves 1,405 Others 520 Total 39,362 Personnel expenditures 29% Page 17 Senate Department of Finance - Investor Presentation April 2024 Consumptive Expenditures 54% Shapeable expenditures ~40% Legally bound expenditures ~60% B#18State Budget Structure of Revenues 2023 (preliminary) Total expenditures 2023: EUR 38,536mn Other revenues 982 Taxes, federal supplementary allocations 74% Revenues Taxes, federal supplementary allocations Consumptive allocations Administrative income, economic activity, etc. Investment allocations, other investment income Other revenues Revenues (adjusted) Borrowing and withdrawal from reserves Actual Figures 2023 (EUR mn) 28,332 4,378 1,942 54 35,687 2,328 Surpluses from previous years and offsetting Gesamt Page 18 Senate Department of Finance - Investor Presentation April 2024 521 38,536 1% Consumptive allocations 11% Administrative income, economic activity, etc. 5% Investment allocations, other investment income 3% Borrowing and withdrawal from reserves 6% Surpluses from previous years and offsetting 1% B#19State Budget Federal Equalisation System Federal equalisation system and federal supplementary funds . • System to provide equal standards of living throughout the country by distributing VAT and supplementary funds depending on the financial strength of a Federal State Special population weighting of 135% in the three city states of Berlin, Bremen and Hamburg (§ 9 (2) and (3) Financial Equalisation Act) Berlin's tax strength has been above average for state taxes since 2019 (2022: 109.8%) 100% 85% 25% Steady growth in Berlin's fiscal strength 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Berlin's declining share of the total volume of financial equalisation 23.4% 21.0% 19.5% 2022 20% 15% 10% 5% 0% 2020 2021 2022 B1 Page 19 Senate Department of Finance - Investor Presentation April 2024#20State Budget Growth in Investment Expenditures 4500 • 4000 3500 Special funds,,Growing City" (SIWA): Funded by past budget surpluses • SIWA enables additional annual investment expenditure Investments in EUR mn 3000 375 311 283 2500 572 375 2000 358 107 238 1500 3657 3273 2903 1000 2164 2148 1706 1773 1599 500 0 2016 2017 2018 2019* 2020* 2021* Investments state budget ■SIWA Page 20 Senate Department of Finance - Investor Presentation April 2024 2022* 2023* *adjusted for allocations to the special assets SIWA and school construction financing fund B1#21State Budget GDP-Growth and Debt Development EUR bn Page 21 200 67.2% 180 160 140 120 100 80 60 40 20 70% I nominal GDP Debt Debt to GDP ratio (rhs) 60% 50% 40% 30% 20% 10% 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Senate Department of Finance - Investor Presentation April 2024 B#2213 2116.02 +45.95 +2.3% +5.7% +154 2865 2970 BANKING 6070 A58768 + 11126.98 +134.09 +2.4% 2535+13 878 MARKET 428888 000000 ECONOMICS 21 +4597 2118.04 +135.08 +2.3% 7239 +A 572 20000 ipopba 04 CAPITAL MARKETS - PROFESSIONAL FINANCIAL MANAGEMENT#23Capital Markets General Conditions and Financing Instruments Annual funding volumes fixed interest bonds 0.3% floating rate notes promissory notes loans 1.9% • 2023: EUR 5,122mn 100% 14.3% 13.2% • 2024: Approx. EUR 9,675mn planned. 90% 20.2% 2.9% 5.9% 80% Excellent credit rating - three issuer ratings with stable outlook 10.4% 70% 60% • AAA from Fitch Ratings 50% • Aa1 from Moody's 83.9% 40% 76.9% 67.6% ● AAA from Scope Ratings 30% 20% 0% risk weighting in most European countries Bonds qualify as a Level 1 asset for the Liquidity Coverage Ratio (LCR) 10% 0% 2023 2024 (YTD 31.03.) overall portfolio (YTD 31.03.) Page 23 Senate Department of Finance - Investor Presentation April 2024 B#24Capital Markets Funding Requirements in 2024 Budget year 2024 (as at 31 March 2024) Funding requirements from maturing loans for refinancing 2024 (§2 (2) Budget Act 2024/25) EUR mn 5,323.9 Net new borrowing from financial transactions (§2 (1) Budget Act 2024/25) 1,656.0 Residual borrowing budget year 2023 1,215.6 plus expected change in the portfolio of internal loans (§2 (4) and § 2 (5) Budget Act 2024/25) 1,491.4 Gross borrowing authorisation 2024 9,686.9 less actual borrowing as at 31 March 2024 (53% of €9,675.1mn) -5,124.0 Remaining gross borrowing in the budget year (47% of €9,675.1mn) 4,551.1 Page 24 Senate Department of Finance - Investor Presentation April 2024 B#25Capital Markets Maturity Profile (as of March 31, 2024) EUR mn 7000 6000 5397 5312 5169 5066 5000 4000 3000 2000 1000 0 I outstanding debt I funding 2024 (fixed) funding 2024 (floating) 6077 4164 3350 3206 2520 2572 2484 2326 1933 1947 1585 1593 Benchmark issues in 2024 (EUR 4,250mn): . • January: 7 years, EUR 1,500mn, 2.625% February: 10 years, EUR 1,000mn, 2.875% March: 30 years, EUR 1,250mn, 3.00% and tap in ~4 years, EUR 500mn, 3.00% as a dual tranche 1575 1371 889 ill 1030 429 211 214 138 164 100 25 10 565 465 1390 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 2053 2054 Ø 2.04% Ø 1.45% Ø 1.34% Page 25 Senate Department of Finance - Investor Presentation April 2024 B1#26Capital Markets Benchmark Bonds Issue ISIN Volume in EUR mn Coupon as of March 31, 2024 Maturity Currently 98 outstanding bonds 487 DE000 A168015 1,300 0.625% 20.03.2026 with a total volume of EUR 49.6bn 493 DE000 A2AAPL9 1,500 0.625% 08.02.2027 . Predominantly denominated in 517 DE000 A2NB9Y6 1,500 0.010% 18.05.2027 548 DE000 A3MQYR7 1,500 3.000% 04.05.2028 euros 509 DE000 A2E4EE4 1,500 0.625% 05.02.2029 25 Benchmark bonds with a volume EUR 1,000mn 547 DE000 A3MQYQ9 1,500 2.875% 05.04.2029 514 DE000 A2NB9V2 1,250 0.100% 18.01.2030 520 DE000 A289K63 1,400 0.010% 02.07.2030 Overall debt at Dec. 31, 2023: 552 DE000 A351PHO 1,500 2.625% 24.01.2031 EUR 64.2bn 488 DE000 A168023 1,500 1.000% 19.05.2032 505 DE000 A2E4EA2 1,550 1.300% 13.06.2033 Average term to maturity: 518 DE000 A2NB9Z3 1,150 0.125% 04.06.2035 8.15 years 490 DE000 A2AAPH7 1,500 0.625% 25.08.2036 • Average nominal interest rate: 495 DE000 A2AAPM7 1,550 1.375% 05.06.2037 1.77% 521 DE000 A289K71 1,500 0.050% 06.08.2040 530 DE000 A3H2Y08 1,250 0.100% 18.01.2041 524 DE000 A289LA6 1,500 0.350% 09.09.2050 556 DE000 A351PMO 1,250 3.000% 13.03.2054 Page 26 Senate Department of Finance - Investor Presentation April 2024 B1#27Capital Markets Most Important Current Sustainability Activities. Affordable Housing The State of Berlin as a social landlord: • • • Maximum annual rent increase of 2.9 % and maximum ratio of income to rent for low-income households with a housing authorisation certificate (WBS) 63% of all re-lettings are to low-income households with a housing authorisation certificate (minimum quota for new builds of 50%) Retention requirement: Profits of state-owned social housing companies must be used for new construction, the purchase of flats and portfolio maintenance Issue of social bonds to finance the construction of new affordable housing by Gewobag and IBB Page 27 Mobility Transition (public transport) For better and emission-free buses and trains, Berlin is increasing the annual public transport subsidy to €2.1 billion by 2028 (+90%) Decarbonisation of bus operations by 2030 through e-buses • ⚫ 340 additional underground carriages by 2035 • • 139 additional trams by 2035 80 km of new tram lines by 2035 as well as new suburban and underground railway connections Senate Department of Finance - Investor Presentation April 2024 Energy and Heat Transition Investments in the decarbonisation of electricity generation and heat supply as key building blocks for climate protection 2021: Purchase of Berliner Stromnetz GmbH • Annual investment of several hundred million euros in Berlin's electricity grid to support the energy transition 2024: Purchase of local district heating network . • with 1.3 million connected residential units Largest district heating network in Western Europe Heating, air conditioning and hot water use cause 47% of Berlin's CO2-emissions (as of 2020) • Conversion and expansion of district heating with the aim of decarbonising the heat supply B X#28Capital Markets Berlin's Inaugural Sustainability Bond February 2023: Inaugural Sustainability Bond of the State of Berlin (EUR 750mn) • Sustainability Bond Framework of the State of Berlin • Second Party Opinion by ISS ESG Refinancing of socially und environmentally sustainable projects from up to three previous budget years Reporting in accordance with the ICMA Sustainability Bond Guidelines: • Allocation Report (published on 30 June 2023) Impact Report (published on 5 February 2024) Page 28 Senate Department of Finance - Investor Presentation April 2024 B#29Capital Markets Berlin's Inaugural Sustainability Bond Project Category (ICMA SBP) Share Volume 2022 (EUR mn) Allocated Volume (EUR mn) Project Category (ICMA GBP) Share Volume 2020-22 Allocated Volume (EUR mn) (EUR mn) Affordable basic infrastructure 6% 52.7 46.8 Renewable Energy 1% 5.5 4.9 Access to essential services 12% 102.7 91.2 Energy Efficiency 5% 42.9 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% 167.7 149.0 Climate change adaptation 0% 0.7 0.6 Socioeconomic advancement and empowerment 32% 268.6 238.5 Clean Transportation 19% 159.8 141.9 18 Social Projects 73% 620.0 550.8 18 Green Projects 27% 224.2 199.2 ↓ Page 29 Senate Department of Finance - Investor Presentation April 2024 Total volume of 36 eligible projects: EUR 844.4 mn Expected bond volume: EUR 750.0 mn B☑#30Inaugural Sustainablity Bond - State of Berlin Transaction Review Final Terms Description and Transaction History State of Berlin Rating Aa1 (Moody's) / AAA (Fitch) / AAA (Scope) ■ Increased investor outreach before launch • Two well-received Global Investor Calls in German and English • Eleven investor meetings as one-on-ones Allocation by Investor Type Asset Manager. 33% Format Issuance Volume Treasury note EUR 750mn (no-grow) 2.75% p.a., act/act, ICMA Coupon Pricing Date 06. Februar 2023 Settlement Date 14. Februar 2023 Maturity Date 14. Februar 2033 Reoffer Price 99.200% MS - 2 bps Reoffer Spread Alignment of the framework with the "ICMA Principles" • Seven green and five social project categories that contribute to 12 UN SDGs according to the SPO by ISS ESG • 27 percent of emissions proceeds go to 18 green projects and 73 percent to 18 social projects ■ Announcement on February 3, 2023 • 10-year bond with a volume of EUR 750mn no grow • Opening of the order books on Monday, February 6, 2023 with a guidance of MS +1 bp area Banks 43% Bund Denomination Reoffer Yield Reoffer-Spread to 2.843% + 59.4 bps vs. DBR 1.70% 8/2032 EUR 1.000,- Listing Berlin Joint Lead Managers ISIN CACIB / Deka Bank / DB / Rabobank / UniCredit DE000A3MQYP1 Page 30 Largest order book of all syndicated Berlin bonds • High quality orders from the first minute • With a granular order book of over EUR 3.6 billion, fixing of the reoffer spread at MS -2 bps • Despite 3 bps tightening, order book continues to grow to over EUR 5bn Others . Greenium of one basis point 1,7%. ■ More than 120 investors Allocation of 2/3 of the issue to sustainable investors BeNeLux 3,8% Other Europe 4,5% Senate Department of Finance - Investor Presentation April 2024 Allocation by Region Central Banks 11% Others 3% Germany 43,7% Insurances 10% Southern Europe 22,7% France 11,7% Austria/Switzerland 11,9% B X#31Bezikus Your 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] Website: Funding of the State of Berlin - Berlin.de Refinitiv: FINBE Bloomberg: BERGER RESP LAEN B#32Disclaimer: This presentation of the State of Berlin for the issuance of 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 ☑