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Group accounts Q2/2012 and YoY 2011

Group accounts Q2/2012 and YoY 2011. W&W Group – Strong Q2-figures Dr. Jan Martin Wicke, CFO 10 August 2012. Disclaimer.

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Group accounts Q2/2012 and YoY 2011

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  1. Group accounts Q2/2012 and YoY 2011 W&W Group – Strong Q2-figures Dr. Jan Martin Wicke, CFO 10 August 2012

  2. Disclaimer This presentation and the information contained herein, as well as any additional documents and explanations (together the “material“), are issued by Wüstenrot & Württembergische AG (“W&W”). This presentation contains certain forward-looking statements and forecasts reflecting W&W management’s current views with respect to certain future events. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding W&W’s future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where W&W participates or is seeking to participate. The W&W Group’s ability to achieve its projected results is dependent on many factors which are outside management’s control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. The following important factors could cause the Group’s actual results to differ materially from those projected or implied in any forward-looking statements: – the impact of regulatory decisions and changes in the regulatory environment; – the impact of political and economic developments in Germany and other countries in which the Group operates; – the impact of fluctuations in currency exchange and interest rates; and – the Group’s ability to achieve the expected return on the investments and capital expenditures it has made in Germany and in foreign countries. The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. All forward-looking statements included herein are based on information available to W&W as of the date hereof. W&W undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to W&W or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The material is provided to you for informational purposes only, and W&W is not soliciting any action based upon it. The material is not intended as, shall not be construed as and does not constitute, an offer or solicitation for the purchase or sale of any security or other financial instrument or financial service of W&W or of any other entity. Any offer of securities, other financial instruments or financial services would be made pursuant to offering materials to which prospective investors would be referred. Any information contained in the material does not purport to be complete and is subject to the same qualifications and assumptions, and should be considered by investors only in light of the same warnings, lack of assurances and representations and other precautionary matters, as disclosed in the definitive offering materials. The information herein supersedes any prior versions hereof and will be deemed to be superseded by any subsequent versions, including any offering materials. W&W is not obliged to update or periodically review the material. All information in the material is expressed as at the date indicated in the material and is subject to changes at any time without the necessity of prior notice or other publication of such changes to be given. The material is intended for the information of W&W´s institutional clients only. The information contained in the material should not be relied on by any person. In the United Kingdom this communication is being issued only to, and is directed only at, intermediate customers and market counterparties for the purposes of the Financial Services Authority’s Rules ("relevant persons"). This communication must not be acted on or relied on by persons who are not relevant persons. To the extent that this communication can be interpreted as relating to any investment or investment activity then such investment or activity is available only to relevant persons and will be engaged in only with relevant persons. page 2

  3. Agenda W&W at a glance FinancialsQ2/2012 results Yearly comparison 2012/2011 W&W profile page 3

  4. Vision The world is changing, at an ever-increasing pace. Given the complexity of today's world, many customers are looking for a reliable, long-term partner to satisfy their needs in terms of financial services. We want to be their partner of choice. Our position in the market is unique: With the two well established strong brands "Wüstenrot" and "Württembergische", the W&W Group is a specialized one-stop shop for financial planning of retail clients and small/medium commercial customers in Germany and the Czech Republic. W&W at a glance • Personal services delivered locally by our mobile sales force of about 6,000 tied agents ensure a customer relationship which is characterized by trust, understanding, and reliability. • We offer solutions for each customer's individual needs, throughout all stages in life, in the areas of • retail banking with focus on banking products and mortgage lending (B), • life and health insurance (L/H) • property and casualty insurance (P/C). • We deliver clear and systematically defined quality standards. Continuous quality management forms an integral part of our corporate culture. • Six million customers rely on our expertise and financial strength. page 4

  5. W&W Group is based on several strong pillars W&W at a glance Structure W&W Group Banking Products and Mortgage lending (B) Life and Health Insurance (L/H) Property and Casualty Insurance (P/C) Others • Wüstenrot Bausparkasse AG (BSW) • Wüstenrot Bank AG Pfandbriefbank (WBP) • Württembergische Lebens-versicherung AG • ARA Pensions-kasse AG • Karlsruher Lebens-versicherung AG • Württembergische Kranken-versicherung AG • Württembergische Versicherung AG • Service entities • Czech W&W companies page 5 Wüstenrot

  6. W&W at a glance Q2/2012 Highlights W&W strategy • We stay on track with our efficiency programme “W&W 2012“ and focus on profitable growth • In a challenging economic environment W&W benefits from its solid business model • The new efficiency programme "W&W 2015" is to strengthen our competitive position Business environment • Extremely low domestic interest rates are a challenge for providers of financial services • Higher capital requirements • Increased consumer protection • Growth in new home loan savings business above market level • L/H shows clear increase in new business • New business in P/C above market, driven by motor insurance New business Earnings • W&W exceeds its profit targets: Q2-profit is € 131 m against a year to day target of € 125 m Risk assessment • Risk-bearing ability is stable • Unsolved debt crisis poses a threat for the entire financial sector in extreme scenarios • Sustainable solution of debt crisis is required for short and medium-term success of the W&W Group Guidance • 2012 profit target € 250 m is to be achieved • Costs of additional risk measures will to be compensated if business development continues to outperform plan • Ongoing period of low interest rates could affect results negatively from 2013 onwards • Rising interest rates could influence results positively page 6

  7. W&W at a glance Master data Sound background Customer base FY 2011 • Number of savings contracts (B) 3.8 m • Mortgage loans (Group) 773,616 • Life insurance contracts 2.7 m • P/C insurance contracts 8.0 m • Health insurance customers 470,142 • Current accounts (B) 283,000 • Call deposit accounts (B) 302,000 • 1828 Württembergische founded • 1921 Wüstenrot established • 1999 Merger of Wüstenrot and Württembergische into W&W AG • 8.497 Fulltime employees • 6 m Customers • Multi-channel distribution by own sales force of 6,000 tied agents; 5,000 brokers; online-banking; sales cooperations Domestic market position Business volume FY 2011 • No 2 in home loan savings • No 9 in property/casualty insurance • No 12 in life insurance • Gross premiums (L/H) € 2.4 bn • Gross premiums (P/C) € 1.4 bn • Building society deposits (B) € 17.6 bn • Volume of building savingscontracts (B) € 104.3 bn • Mortgage disbursements (B) € 4.4 bn • Assets under management (Group) € 27.9 bn As of: 31 December 2011 page 7

  8. W&W at a glance Key figures 2011 New business Income statement • New home loan savings, gross (B) € 15.3 bn • New home loan savings, net (B) € 11.8 bn • Total new mortgages (Group) € 5.9 bn • New premiums (P/C) € 206.7m • Annual Premium Equivalent (L/H) € 240.0m • Financial result € 1.4 bn • Premiums earned € 3.8 bn • Insurance benefits incl. paid claims € 3.5 bn • Net profit € 191.6 m • Earnings per share € 1.94 Profit target Balance sheet • Total assets € 75.4 bn • Investments € 43.5 bn • Retail mortgages € 27.4 bn • Insurance liabilities € 29.7 bn • Customer savings € 27.0 bn • Equity € 3.0 bn • W&W has set the following profit target: • In 2012 net profit will rise to € 250 m page 8

  9. 2011 2010 W&W financial conglomerate 129 % 133 % Insurance Group 236 % 246 % Total capital ratio (BSW) 9.9 % 11.0 % Total capital ratio (WBP) 10.1 % 9.5 % Risk-bearing capacity via internal model(VaR 99,5), (solvency/economic capital ratio) 192 % 337 % W&W at a glance Key figures 2011 Solvency ratios Risk profile Distribution of required capital as of 31 December: Ratings* Shareholders of W&W AG Issuer Credit / Default Ratings S&P Fitch • Wüstenrot Holding 66.10 % • LBBW 8.78 % • UniCredito 7.54 % • L-Bank 4.99 % • Schweizerische Rück 4.67 % • Free float 7.92% Covered Bonds/Pfandbriefe Wüstenrot Bank AAA — Wüstenrot Bausparkasse BBB+ outlook stable BBB+ outlook negative Wüstenrot Bank AG Pfandbriefbank BBB+ outlook stable BBB+ outlook negative Württembergische Krankenversicherung — BBB+ outlook positive Württembergische Lebensversicherung BBB+ outlook stable BBB+ outlook positive As of: 31 December 2011 * Ratings as of 26 July 2012. For more details concerning W&W ratings see page 34. page 9

  10. Agenda W&W at a glance FinancialsQ2/2012 resultsYearly comparison2012/2011 W&W profile page 10

  11. Business segments Q2/2012 Financials page 11

  12. Balance Sheet page 12

  13. PIIGS-Exposure of the W&W Group page 13

  14. Financials Main figures of the segments Q2/2012 Building society Life/Health Q2 2012 Q2 2011 ∆ Q2 2012 Q2 2011 ∆ € 330.9 m € 254.0 m € 67.7 m Total new premiums Single premiums Regular premiums € 386.2 m € 312.1 m € 66.0 m + 16.7 % + 22.9 % - 2.5 % New home loan savings, gross € 7.95 bn € 7.51 bn + 5.8 % New home loan savings, net € 5.82 bn € 5.68 bn + 2.4 % Gross premiums € 1 224.9 m € 1 162.4 m + 5.4 % Banking P/C Q2 2012 Q2 2011 ∆ Q2 2012 Q2 2011 ∆ New mortgages € 1.90 bn € 1.99 bn - 4.6 % New premiums € 152.1 m € 120.0 m + 26.8 % Total new mortgages (W&W group) € 2.73 bn € 3.12 bn - 12.6 % € 871.8 m Gross premiums € 937.6 m + 7.5 % page 14

  15. Agenda W&W at a glance FinancialsQ2/2012 resultsYearly comparison2011/2010 W&W profile page 15

  16. Business segments yearly comparison 2011/2010 Financials page 16

  17. Financials Key figures of the W&W Group (1) 2011/2010, German market Comments • Home loan savings contracts (B) € 104.3 (vs.103.4)bn • Savings (B) € 17.6 (vs.17.7) bn • Gross premiums (L/H) € 2.4 (vs. 2.5) bn • Gross premiums (P/C) € 1.38 (vs.1.32) bn • Assets u. Management (Group) € 27.9(vs. 27.7)bn • Growth in all segments except for life • Profit (€ 191.6 m) exceeds target of € 180 m significantly despite debt crisis in the market • Acquisition of Allianz Dresdner strenghtens sales force; integration in line • Write down of Greek bonds significantly impact financial result (€ 69,9 m) • Positive one-offs in taxes (€ 53 m net profit) Group net profit in € m Czech companies • Due to reduced government premiums on building society contracts, new business declined by 9 % • Significant growth in mortgage business. Market share is 4.6 % (vs. 3.6 %) • Czech life insurance business decreased by 28 % due to market induced lower single premiums • P/C is on previous year level page 17

  18. Financials Key figures of W&W Group (2) 5 years‘ view Management priorities Targets Net profit Target on previous year basis Evaluation • Improvement of mortgage loan processing • Transformation of life business • Cost efficiency improvements • Value based management of new business Not achieved due to financial crisis 2008: ROE 2.8 % ROE 6,7 % 2009: ROE 9.1 % ROE 9 % Achieved Exceeded due to „W&W 2009 „ efficiency programme € 140 m net profit 2010: € 179.7 m € 180 m net profit Exceeded 2011: € 191.6 m € 250 m net profit 2012: tba 1 Adjustment of previous year according to IAS 8 page 18

  19. Financials Key figures banking products and mortgage lending (1) New business 2011/2010 Comments • New home loan savings, gross+ 4.4 % to € 15.3 bn • and net + 3.4 % to € 11.8 bn • New mortgages (B) € 3.9 bn (- 6.2 %) • New business growth based on enhanced multi channel distribution • Increasing new business for the fifth year in a row • New business in mortgages slightly declined due to intensified focus on profitability • Net profit declined notably from € 109.5 to € 20.8 due to Greek bond impairments (€ 64,2 m loss after tax) and enduring period of low interest rates Net profit in € m * Since 2009, building society and retail banking form one segment „banking products and mortgage lending“. Previous years are not comparable. page 19

  20. Financials Key figures banking products and mortgage lending (2) 5 years‘ view Targets Management priorities Target on previous year basis Net profit Evaluation • Improvement of mortgage loan processing • Technical integration Allianz Dresdner Bauspar • Cost efficiency improvements • Value based management of new business Net profit in home loan saving will clearly increaseStabilisation of net profit in banking expected * 2008: € 29 m Achieved Achieved Net profit will rise 2009: € 112.6 m In line with forecast Less net profit due to investments in W&W 2012 2010: € 109.5 m In line with forecast due to impairments on Greek bonds Net profit clearly below previous year 2011: € 20.8 m Net profit 2012 with € 80-100 m significantly above level of 2011 2012: tba * Since 2009, building society and retail banking form one segment „banking products and mortgage lending“. Previous years are not comparable. page 20

  21. Financials Key figures life and health insurance (1) New business 2011/2010 Comments • Premium development impacted by significantly reduced single premiums business • Product mix changed in line with value targets (significantly higher unit-linked new business) • Net profit clearly above target and almost on previous year‘s leveldespite critical market environment • Greek bond impairments impact business segment with € 5,7 m after tax • Total new premiums (L/H) € 734.9 m (- 12.8 %) • Single premiums € 549.9 m (- 18.1 %) • Regular premiums € 167.5 m (+ 8.3 %) • New business (Health only) € 17.5 m (+ 6.1 %) • APE (L/H) € 240 m (+ 0.8 %) Net profit in € m page 21

  22. Financials Key figures life and health insurance (2) 5 years‘ view Targets Management priorities Target on previous year basis • Transformation strategy for life business • Value based management of new business • Cost efficiency improvements Net profit Evaluation Not achieved due to decline in financial result Clear improvement of revenues as to 2007: € 18.8 m 2008: € 13.4 m Achieved Higher net profit vs. previous year 2009: € 16.7 m Net profit above level of 2009 2010: € 40.6 m Achieved Net profit 2011: € 29 m Exceeded 2011: € 40.2 m 2012: tba Net profit 2012 at 2011-level: € 30 m to € 40 m page 22

  23. Financials Key figures property and casualty insurance (1) Comments Selected data 2011/2010 • New business and premium development clearly above market. Growth particularly in motor and SME-lines • Significantly higher profit due to improved technical result (combined ratio in local business 92,7 %) • No Greek bonds in portfolio of P&C segment • New premiums € 206.7 m (+ 5.7 %) • Total gross premiums € 1.4 bn (+ 4.2 %) • Gross premiums motor segment € 568.2 m (+ 7.2 %) • Corporate clients€ 293.7 m (+ 5.2 %) Net profit in € m page 23

  24. Financials Key figures property and casualty insurance (2) 5 years‘ view Targets Management priorities 2011/2012 • Underwriting disciplin to be continued • Multi-channel distribution offers growth opportunities • Cost management Net profit Evaluation Target on previous year basis 2008: € 16.1 m Achieved Higher net profit vs. previous year Achieved 2009: € 81.8 m Higher net profit vs. previous year Less net profit due to investments in „W&W 2012“ efficiency programme Achieved 2010: € 26.4 m Achieved 2011: € 107.5 m Net profit above level of 2010 2012: Net profit € will be € 80 to 90 m 2012: tba page 24

  25. Balance sheet 2011/2010 Financials page 25

  26. Balance sheet details (W&W Group)  Assets are dominated by investments and retail mortgages; Liabilities are dominated by insurance liabilities and liabilities to customers. Over all business segments W&W Group has a comfortable liquidity position. Financials Equity and Liabilities Assets page 26

  27. Solvency ratios Financials  Sound capitalization of W&W Group page 27

  28. Investments  As a matter of principle, the Group monitors all exposures continuously Financials Investments of the W&W Group as of 31 December 2011 amount to € 43.5 (vs 44.3) bn page 28

  29. Agenda W&W at a glance FinancialsQ2/2012 resultsYear on year2011/2010 W&W profile page 29

  30. A short history of W&W Profile Established in 1828, Württembergische Privat-Feuer-Versicherungsgesellschaft is the first private property insurance in southern Germany 1991 Cooperation of Allgemeine Rentenanstalt and WürttFeuer; names change to Württembergische Versicherung AG and Württembergische Lebensversicherung AG In 1833 Allgemeine Rentenanstalt, the first pension insurance in Germany, was established 1999 Merger of Wüstenrot and Württembergische into „W&W AG“ 2001 Merger of Wüstenrot and Leonberger Bausparkasse AG 2005 Acquisition of Karlsruher Versicherungsgruppe 2006 Start of fundamental restructuring of the Group and launch of "W&W 2009" modernization programme, followed by "W&W 2012" efficiency programme aiming at net profit of € 250 m in 2012 2009 Acquisition of Vereinsbank Victoria Bauspar AG Established in 1921, Wüstenrot is Germany‘s firsthome loan and savings bank 2010 Acquisition of Allianz Dresdner Bauspar AG 1828 1921 1991 2012 page 30

  31. Multi-channel distribution Profile Banks / coop. partners MobSF Württ MobSF Würo Direct1 Brokers Other Partnerships and cooperations @ ~ 3,000 ~ 3,000 Banks Insurance companies Financial sales networks  Brokers 5,000 brokers Potential access to 40 million customers Cooperations 1) Direct sales, supporting the mobile sales force through mailshots, call centres, online transactions page 31

  32. 49% Cross Selling potential of W&W Profile 10% Target: One in five customers owns at least one product of the other business segment  2009 InsuranceDivision Banking products and home financing 17.7% Status quo 2010: More than 17% are customers of both segments (acquired by own salesforce) 2012 InsuranceDivision Banking products and home financing 20% Target: 20% are customers of both segments (acquired by own salesforce) Seite 32

  33. Market shares Profile Market share Banking Products and Home Financing Wüstenrot Bausparkasse AG (BSW) Schwäbisch Hall 28.3 % Wüstenrot 13.7 % BHW 11.6 % New home loan savings business (gross) 2011 (private sector) Wüstenrot Bank AG Pfandbriefbank (WBP) • Wüstenrot Bank 2.9 % New home financing business 2011 Market share Insurance Division Württembergische Lebens- versicherung AG Allianz Leben 17.4 % R&V 5.4 % ... 12. Württembergische Lebensvers. 2.5 % Gross premiums 2011 Württembergische Versicherung AG Allianz 15.0 % AXA 5.3 % --- 9. Württembergische Versicherung 2.3 % Gross premiums 2010 * * 2011 data will be published by Juli 2012 page 33

  34. Ratings  In addition, Wüstenrot Bausparkasse AG is rated "A", outlook: stableby GBB-Rating Gesellschaft für Bonitätsbeurteilung mbH Profile Standard & Poor‘s FitchRatings Financial Strength Rating Issuer Credit Rating Financial Strength Rating Issuer Default Rating Wüstenrot & Württembergische AG BBB outlook stable BBB outlook stable BBB+ outlook positive Wüstenrot Bausparkasse AG BBB+ outlook stable BBB+ outlook negative Wüstenrot Bank AG Pfandbriefbank BBB+ outlook stable BBB+ outlook negative Württembergische Krankenversicherung AG A- outlook positive BBB+ outlook positive Württembergische Lebensversicherung AG BBB+ outlook stable BBB+ outlook stable A- outlook positive BBB+ outlook positive Württembergische Versicherung AG BBB+ outlook stable BBB+ outlook stable A- outlook positive BBB+ outlook positive Covered Bonds / Pfandbriefe (B) AAA Hybrid capital bond (L) Hybrid capital bond: BBB- Hybrid capital bond: BBB- Hybrid capital bond (P/C) Hybrid capital bond : BBB- * Ratings as of 26 July 2012. page 34

  35. Shareholder structure of W&W AG Profile • Issued capital of W&W AG is € 481,067,777.39. It is divided into 91,992,622 no-par value shares. • Pro-rata issued capital per share amounts to € 5.23 • All W&W shares are registered shares. Shareholders national/international 6% 94% % of issued capital 3% 97% Private Institutional page 35

  36. Investor Relations Wüstenrot & Württembergische AG Gutenbergstraße 30 70176 Stuttgart Investor Relations, Ute Jenschur ir@ww-ag.com internet: ww-ag.com/go/investor-relations (in German) phone: +49 711 662 724034 Profile page 36

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