SenFin 303-12/2015 State of Berlin Investor Presentation July 2018
Berlin An outstanding investment opportunity Content Capital political and cultural center Economic Base - attractive business location Budget Capital Markets professional treasury management Scholvien Seite 2
The Federal States (82.5 Mio inhabitants) Schleswig-Holstein (2.9 Mio) Hamburg (1.8 Mio) Bremen (0.7 Mio) Lower Saxony (7.9 Mio) Mecklenburg-Western Pomerania (1.6 Mio) Brandenburg (2.5 Mio) Berlin (3.6Mio) City States: Berlin, Bremen, Hamburg North Rhine - Westphalia (17.9 Mio) Hesse (6.2 Mio) Saxony-Anhalt (2.2 Mio) Thuringia (2.2 Mio) Saxony (4.1 Mio) Rhineland - Westphalia (4.0 Mio) Saarland (1.0 Mio) Baden-Wurttemberg (10.9 Mio) Bavaria (12.9 Mio) (in brackets: number of inhabitants, December 2016) Seite 3
Capital political and cultural center Capital of the Federal Republic of Germany Home to the German government and seat of parliament Germany s largest City 8th largest State with 3.6mn inhabitants Wolfgang Scholvien Embassies and consulates of 151 countries Wolfgang Scholvien Prime cultural and touristic location Wolfgang Scholvien Seite 4
Economic Base Attractive location for internationally well-known companies Seite 5
Economic Base Diversified economic Base Unique science and research environment Close cooperation between research and business in the fields of: 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 www.berlin.de/dpa WISTA-MANAGEMENT GMBH Seite 6
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Economic 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 Nominal GDP increased a solid 4.7 % from EUR 130.5 bn in 2016 to EUR 136.6 bn in 2017 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% Berlin National average Seite 7
3,33 3,38 3,42 3,47 Population growth 3,52 3,57 Inhabitants in millions Growing city Rising population 240.000 new inhabitants since 2012 70.000 61.600 3,6 60.000 49.700 3,55 50.000 40.000 41.100 43.800 44.100 42.200 3,5 3,45 3,4 30.000 3,35 20.000 3,3 10.000 3,25 0 2011 2012 2013 2014 2015 2016 3,2 Seite 8
Investment in millions euro 1.818 1.815 1.708 1.715 1.659 1.658 1.447 1.543 1.534 1.377 1.265 1.380 1.773 1.681 1.706 1.626 2.274* 48 107 238 350* Growing city Investing in the future Reserve fund Growing City Sustainability (SIWANA) increases investment volume 2.500 2.000 investment SIWANA 1.500 1.000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 * budget figures Seite 9
Number of full-time equivalents (FTE) 105.300 104.690 104.360 105.540 106.730 109.200 111.470 115.500 117.550 119.800 122.100 207.200 Growing city Continuing population growth requires careful adjustment of number of employees 200.000 180.000 160.000 140.000 The number of employees per 1,000 inhabitants in the State of Berlin in 2017 is around 30.0 FTE. 120.000 100.000 80.000 60.000 40.000 20.000 0 1991 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 in full-time equivalents (FTE) at the end of the each year (from 2018 forecasts), as of April 2018 Seite 10
budget figures Haushaltsgesetz 2018/2019 Finanzplanung 2017-2021 Budget Budget surplus since 2012 30.326 revenues adjusted 26.280 27.698 29.192 28.425 28.982 28.149 29.435 29.412 30.287 24.713 26.595 21.039 19.599 21.669 20.255 22.568 22.747 22.270 21.910 21.892 20.794 (deficit) 23.837 22.965 24.507 25.000 expenditures adjusted 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Million Euros. 2016 provisional budget figures Seite 11
-1168-1159 -205-1.103-496 -896-488 -434-283 -101-280* -215* Capital Markets Well prepared for debt-brake era debt of 3.3 billion has been redeemed since 2012 0 Schuldentilgung SIWANA Establishment of a reserve fund "Investments in the growing city and sustainability" (SIWANA) in 2014-400 -800 Use of budget surpluses pro rata for debt repayment and SIWANA -1200 Total debt as of Dec 31st, 2017 EUR 59.0bn -1600-2000 -2400 2012 2013 2014 2015 2016 2017 2018 2019 * Credit financing plan 2018 and 2019 Seite 12
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 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 Reduction of gross borrowing from 7 billion in 2018 to 5 billion p.a. Private placements and German domestic Schuldscheine important pillars of the funding strategy Foreign currency issues with standalone documentation 7000 6000 5000 4000 3000 2000 1000 0 Redemption structure in million per year Last update 12. June 2018 Seite 13
Capital Markets Berlin s benchmark bonds 0%-risk weighting in most European countries Excellent credit quality with three issuer ratings: AAA with stable outlook by Fitch Aa1 with stable outlook by Moody s AAA with stable outlook by Scope Ratings ECB eligibility Appealing yield pick-up relative to comparable government bonds ISIN Volume in Coupon Maturity DE000 A1P GNM 9 1.000.000.000 1,500% 28.08.2020 DE000 A1K 0FR 4 1.250.000.000 3,125% 17.08.2021 DE000 A0K AV2 1 1.000.000.000 4,250% 25.04.2022 DE000 A13 R6X 4 1.100.000.000 0,750% 11.11.2022 DE000 A1R 06T 9 1.500.000.000 1,875% 12.06.2023 DE000 A16 1WS 6 1.100.000.000 0,750% 08.09.2023 DE000 A11 QEJ 1 1.500.000.000 1,625% 03.06.2024 DE000 A13 R6Z 9 1.300.000.000 0,500% 10.02.2025 DE000 A14 J3F 7 1.600.000.000 0,250% 22.04.2025 DE000 A16 801 5 1.100.000.000 0,625% 20.03.2026 DE000 A2A APL 9 1.200.000.000 0,625% 08.02.2027 DE000 A16 802 3 1.500.000.000 1,000% 19.05.2032 DE000 A2E 4EA 2 1.250.000.000 1,300% 13.06.2033 DE000 A2A APH 7 1.300.000.000 0,625% 25.08.2036 DE000 A2A APM 7 1.550.000.000 1,375% 06.06.2037 Seite 14
Your contacts in Berlin Susanne Reichenbach Head of Treasury Tel.: +49 (30) 9020-4185 E-Mail: Susanne.Reichenbach@senfin.berlin.de Elke Badack-Hebig Senior funding manager Tel.: +49 (30) 9020-4187 E-Mail: Elke.Badack-Hebig@senfin.berlin.de Mirko Voit Senior funding manager Tel.: +49 (30) 9020-4188 E-Mail: Mirko.Voit@senfin.berlin.de Wolfgang Scholvien Internet: www.berlin.de/sen/finanzen/vermoegen/geld-und-kreditgeschaeft/artikel.13670.php Seite 15
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. 2016 Berlin Partner GmbH Seite 16