W&W Group Investor Presentation April 2018 Agenda 1 W&W - PowerPoint PPT Presentation

W&W Group Investor Presentation April 2018

Agenda 1 W&W at a glance Financials 2 Goal & strategy 3 Appendix 4 Page 2

W&W at a glance Our roots: Wüstenrot & Württembergische 1921 Wüstenrot, 1828 Württembergische Privat- Germany‘s first home Feuer-Versicherungsgesellschaft was loan and savings established, the oldest private property bank, was founded. insurance in southern Germany, 1833 Allgemeine Rentenanstalt , the first pension insurance in Germany was established. 1991 Both companies formed the Württembergische Insurance Group . 1999 Merger of equals of Wüstenrot & Württembergische . 2018 Starting webbased platform Acquisitions: “Wüstenrot Wohnwelt” 2005 Karlsruher Versicherungsgruppe 2017 Acquisition of treefin AG, creating „FinanzGuide 2009 Vereinsbank Victoria Bauspar AG App“, as financial assistant 2010 Allianz Dresdner Bauspar AG 2017 introducing new digital brand “Adam Riese” Page 3

W&W at a glance Our Group fundamentals: resistant business model Reporting segments & net profits 2017 of the W&W Group Home Loan and Life and Health Property and Others Savings Insurance Casualty Insurance Wüstenrot Württembergische Württembergische W&W Asset Bausparkasse AG Lebensversicherung Versicherung Management Württembergische Czech Republic Krankenversicherung Bausparkasse Net profit 2017 Net profit 2017 Net profit 2017 € 58.5mn € 31.8mn Mortgage Bank € 125.8mn  No. 2 in German home loan savings  6,1 million customers  Core market Germany (14.2% market share)  6,500 employees in Germany  Major offices in Stuttgart and  No. 9 in German property & casualty Ludwigsburg  6,000 tied agents insurance (2.5% market share)  Additional business in Czech Rep.  No. 13 in German life & health insurance (2.3% market share)  W&W’s product range focuses on life issues such as housing, assets, protection and a sustainable future.  W&W is well diversified to face challenging market conditions. Page 4

W&W at a glance Our sales force: broadly positioned to capture further growth Own sales channels ~ 3,000 tied agents ~ 3,000 tied agents Wüstenrot Direct channel Württembergische Partnerships and cooperations Banks Insurance Financial sales Brokers Cooperations companies networks 8,000 brokers Insurance Financial sales companies networks  Potential access to 40 million customers. Page 5

W&W at a glance Our shareholder structure: reliable and long-term oriented  Wüstenrot and Württembergische merged on 1 January Wüstenrot Stiftung 1999. The company went public on 9 September 1999. Since then W&W registered shares have been officially listed in Stuttgart and Frankfurt. W&W AG is part of the 100.00% 100.00% SDAX since March 2016.  Wüstenrot Stiftung holds its indirect stake in W&W in two Wüstenrot Holding AG WS Holding AG companies. Wüstenrot Holding AG owns 39.1% and the WS Holding AG owns 26.4% of the shares. Both companies are solely owned by Wüstenrot Stiftung. 39.91% 26.40%  Wüstenrot Stiftung is a private non-profit foundation. It is Wüstenrot & Württembergische AG established and maintained exclusively for cultural, artistic, scientific, educational and charitable purposes. Around 70% of its funds are used to initiate, plan and 10.00% 0.21% 23.48% realise its own foundation projects. With the remaining 30%, it awards financial sponsorships for the implementation of outstanding ideas and projects from Other Treasury Freefloat Institutional Shares other institutions.  Wüstenrot Stiftung as indirect anchor investor ensures the stability of the W&W Group. Page 6

W&W at a glance Our share: Attractive to long-term investors Dividend policy: at least to maintain our dividend +30% 3.50% 3.04% 3.23% 3.22% 2,74 € 2.82% 2.63% 2.89% 2,88 € 2.78% 2,52 € 2,49 € 2,42 € 1,94 € 1,88 € 1,56 € 0,65 € 0,60 € 0,60 € 0,50 € 0,50 € 0,50 € 0,50 € 0,50 € 2010 2011 2012 2013 2014 2015 2016 2017 Yield Earnings per Share Dividend per Share Institution Date Analyst Rating Upside Jochen Buy/Price Metzler 29.03.18 34% Schmitt target: 25.60 € Andreas Buy/Price Lampe 03.04.18 18% Schäfer target: 22.50 € Commerz- Michael Buy/Price 29.03.18 15% bank Dunst target: 22.00 € Frank Biller Buy/Price Montega 29.03.18 20% target: 23.00 € Werner Buy/Price 28.03.18 19% LBBW Schirmer target: 23.00 € Page 7

W&W at a glance Strong track record; sustainable further profit targeted IFRS Consolidated net profit, in € mn long term 300 guidance: 226 250 205 220 200 166 100 16 0 „ W&W 2009 “ „ W&W 2012 “ „ W&W 2015 “ „ W&W Besser! “ Restructuring Expansion Program to Strategy program program reinforce our implementation -100 strengths 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Actual consolidated annual net profit Average consolidated net profit Plan consolidated annual net profit  Continuous increase in net profit despite global market crisis. * estimate Page 8

W&W at a glance W&W constantly exceeds its forecasts IFRS Consolidated net profit, in € mn 274 258 242 240 235 235 220 180 155 135 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 Forecast Forecast Forecast Forecast Forecast  Forecast 2018: at least 200 € mn net profit. Page 9

Agenda 1 W&W at a glance 2 Financials Goal & strategy 3 Appendix 4 Page 10

Financials Highlights 2017 + Group net profit with € 258.0mn significantly above planned (€ 230.0mn) and previous year‘s result (€ 235.3mn) + € 153mn increase in equity capital W&W with + W&W stock +26%. Dividend increase to € 0.65, yield exceeding MDAX and SDAX strong result in + Financial result driven by economic environment and stock market development 2017. + Again strong underwriting result in the property/casualty insurance segment − Administrative expenses above previous year due to investments in digitalization + Productivity growth rate of 5% in plan Market share and gross new business in home loan savings increased o Profitable new + Volume of home loans increased (incl. third party book) business. + Casualty insurance premiums increased + Increase in premiums in the health insurance segment, esp. in supplemental Notable agreements increase − Still difficult market environment in life insurance: increase of new business in in Property & occupational pension schemes; decrease of new business in single premiums as Casualty scheduled Insurance. + Fund sales above previous year + New brand Adam Riese launched Digital + FinanzGuide for W&W customers online transformation. + „Wüstenrot Wohnwelt“ designed (introduced in January 2018) Page 11

Financials Results 2014 – 2017: Overview 2014 2015 2016 2017 Group segments (in €mn) (in €mn) (in €mn) (in €mn) Segment Home Loan and Savings 51.8 57.0 58.7 58.5 Bank Segment Life and Health Insurance 45.7 40.3 49.7 31.8 Segment Property/Casualty Insurance 128.2 114.9 108.3 125.8 Others/Consolidation 16.3 62.1 18.6 41.9 Group Net Profit 242.0 274.3 235.3 258.0 Earnings before income taxes 283.0 323.6 291.6 292.4 Income taxes -41.0 - 49.3 - 56.3 -34.4  Segment Property/Casualty Insurance: Strong underwriting result.  Others / Consolidation: Extraordinary income of € 18.3mn from sale of V-Bank stake.  Income taxes: Reduced due to capitalisation of tax receivables resulting from the offsetting of with- holding tax for previous years, the settlement of taxes from previous years and tax-free equity gains. Net profit has notably surpassed previous year‘s result. Page 12

Financials Consolidated net results W&W Group Consolidated net profit Comments consolidated net profit 2017 in €mn Higher financial result (+ € 14.6mn) 274.3 258.0 242.0 235.3 Lower premiums/contr. earned (- € 123.5mn) Lower insurance benefits (+ € 49.7mn) Higher administrative expenses (- € 24.1mn) Other operating result (+ € 70.5mn) 2014 2015 2016 2017 Lower income tax (+ € 21.9mn) Administrative expenses Return on equity* in €bn in % 8 1.11 1.11 1.10 1.08 6.8% 6.4% 6 +4.8 p.p. 4 2.0% 2 0 2014 2015 2016 2017 2006 2017 RoE Average RoE (2006-2017) Depreciation Material Personnel *Based on average equity per year Page 13

Financials Home Loan & Savings segment* Gross new business Net new business Market share, gross in €mn in €mn in % 14.1 11.9 14.6 11.7 13.7 14.2 13.6 13.6 11.5 11.5 13.0 12.7 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 New business construction financing Core capital ratio*** in €bn in % 5.5 5.5 22.5 5.4 4.8 19.4 15.3 13.8 2014 2015** 2016** 2017** 2014 2015 2016 2017 **Including brokering for third parties ***Financial Holding Group *Segment includes Wüstenrot Bausparkasse AG and other operative entities Page 14