Agenda Teil 1: Franz-Josef Kaufmann Head of Capital Markets Funding

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0 Investor Conference „Covered Bond Recovery“
Eurohypo Group Investor Conference „Covered Bond Recovery“ Basel ‌‌‌ 27 August 2009

1 Agenda Teil 1: Franz-Josef Kaufmann Head of Capital Markets Funding
Commerzbank Group Teil 2: Reinolf Dibus Member of the Board of Managing Directors Eurohypo Europäische Hypothekenbank S.A. Basel, 27 August 2009

2 Eurohypo at a glance Eurohypo is one of Germany’s oldest banks. Eurohypo’s history goes back to the foundation of the “Frankfurter Hypothekenbank” in 1862 Eurohypo is part of Commerzbank Group - Germany’s second largest banking group – specialist for Public Finance and Commercial Real Estate Premier issuer in the Jumbo covered bond market with a market share of 7 % Largest issuer in the German Jumbo Pfandbrief market with a market share of more than 22 % Eurohypo issued Euro 18 billion Hypotheken Pfandbriefe since summer 2007 Top Ratings from all major agencies for Eurohypo’s covered bond products Basel, 27 August 2009

3 Table of contents (Part 1)
Update 1H2009 Successful funding effort throughout the crisis Pfandbriefe collateral pools (Eurohypo AG) Basel, 27 August 2009

4 01 Update 1H2009 Basel, 27 August 2009

5 H12009 highlights Operating results
Operating income of Euro -59 m includes valuation adjustments of Euro 94 m on the US RMBS Portfolio. US sub-prime portfolio now adjusted by around 90 %. Net interest income stable, despite difficult market environment Anticipated level of 461 m loan loss provisions caused by real estate market crisis Administrative expenses decreased further 3 % to Euro 229 m even after integration of Essen Hyp Seasoned portfolios Commercial real estate assets decreased from 78.9 bn (YE2008) to Euro 77.4 bn after prolongations of Euro 3.8 bn and new business of Euro 0.7 bn Conservative downsizing of public finance assets from Euro bn to Euro bn Funding capabilities Access to long-term funding, total issuance of Euro 10.3 bn*, thereof Euro 7.2 bn* Mortgage Pfandbriefe Issuance of three Jumbo Benchmark Pfandbriefe with a total volume of Euro 4.5 bn* *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value day 2 July 2009 Basel, 27 August 2009

6 Commercial Real Estate Key elements of the realignment
Markets Focus on ten core markets Germany, France, Italy*, Poland, Portugal, Spain, UK, USA, Russia* and Turkey* Clients Focus on professional real estate investors and developers Customer exposure ≥ Euro 15 m New business Increasing/confirming minimum ticket thresholds, Minimum individual domestic tickets > Euro 10 m Minimum individual international tickets > Euro 20 m Restriction of concentration risk through upper threshold for final hold Asset classes Concentration on five asset classes Offices, German residential real estate, trade and shopping centres, logistics and hotels Products Concentration on profitable CRE finance Single asset and portfolio financing, Development financing and financing-related derivatives Targets Downsizing of CRE portfolio to Euro 67 bn by end 2011 Cost-cutting of Euro 110 m p.a. and Headcount reduction of > 30 % until end 2011 *No new business until further notice Basel, 27 August 2009

7 Commercial Real Estate: Portfolio analysis by region as of 30 June 2009
Exposure at default (EAD) Euro 77.4 bn Germany Downswing of the office markets; retail and residential markets yet robust UK Sharp corrections in each market segment; hopeful signs from the investment market USA Deteriorating labour market burdens the real estate sector Spain Economic slump with negative impacts on the real estate markets France Downturn of the letting markets holds on Poland Negative adjustments in the real estate sector despite moderate contraction of the economy Basel, 27 August 2009

8 Commercial Real Estate: Portfolio analysis by asset type as of 30 June 2009
Exposure at default (EAD) Euro 77.4 bn Offices World-wide downswing of office letting markets continues Retail The retail markets are affected negatively from the global economic downswing Residential German residential market remains robust; downswing in UK and USA seems to ease Hotel Hotel performances worsening; the luxury segment is affected most Warehousing Weakening demand, but rents held up almost firm Basel, 27 August 2009

9 Public Finance Asset reduction by 12 %
Outstanding business In Euro bn Total by internal ratings Euro bn * *Hypothekenbank in Essen’s PF assets of Euro 66.4 bn transferred in August 2008 AAA: 1.0 to AA: 1.4 to A: 1.8 to BBB: 2.2 to BB: 3.0 to B: 3.8 to CCC: 5.2 to 5.8 Basel, 27 August 2009

10 Successful funding effort throughout the crisis 02
Basel, 27 August 2009

11 Commerzbank Group approx. Euro 20 bn Public Sector Pfandbriefe
1H2009: Eurohypo took advantage of positive market environment to cover large parts of funding plan Funding plan Commerzbank Group and Eurohypo thereof Commerzbank Group approx. Euro 20 bn Eurohypo AG Approx. Euro 10.5 bn Commerzbank Group 2009 funding plan for senior unsecured over 100 % completed**; Euro 2.5 bn already transferred to Eurohypo Senior unsecured Approx. Euro 6 bn Status: 100 % completed** Eurohypo issued Euro 7.2 bn* Mortgage Pfandbriefe in 1H2009 Approx. Euro 6 bn Approx. Euro 6 bn Mortgage Pfandbriefe Issuance on an opportunistic basis due to asset reduction; Euro 500 m issued in 1H2009 Up to Euro 3 bn Up to Euro 3 bn Public Sector Pfandbriefe Demand Products Demand *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 **as end of June 2009 Basel, 27 August 2009

12 Eurohypo issued 3 Jumbo Mortgage Pfandbriefe within 3 months
Eurohypo successfully issued Euro 4.5 bn via Jumbos Jumbo issuance March 2009 Euro 1.25 bn 3.75 % Jumbo Mortgage Pfandbriefe May 2009 Euro 1.75 bn 3.75 % Jumbo Mortgage Pfandbriefe June 2009 Euro 1.50 bn 4.375 % Jumbo Mortgage Pfandbriefe Trend Maturity 5 years 7 years 10 years Spread (re-offer) Midswaps +100 bps Midswaps +80 bps Midswaps +70 bps Book size 1.5 bn Euro 2.3 bn Euro 2.4 bn Euro Number of investors 170 115 110 Placement non-banks 36 % 39 % 52 % Placement non-Germany 10 % 18 % 28 % ≈ Eurohypo issued 3 Jumbo Mortgage Pfandbriefe within 3 months Basel, 27 August 2009

13 1H2009: Eurohypo issued Euro 7.2 bn* Mortgage Pfandbriefe
Pfandbrief mix Maturity profile Maturities 5 years and longer Maturities < 5 years ~Euro 0.3 bn ~Euro 6.8 bn* Euro bn Euro 7.2 bn* * *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 Funding plan for Mortgage Pfandbriefe done Clear priority for longer maturities Basel, 27 August 2009

14 Pfandbrief: Eurohypo has raised over € 17 bn* in Mortgage Pfandbriefe
since the crisis started Private placements / benchmarks Eurohypo has placed more than Euro 17 bn* in Mortgage Pfandbriefe since 4Q2007 into the market Private placements (> Euro 8.5 bn) a stable market for domestic and registered Pfandbriefe Eurohypo issued over Euro 7 bn* in Mortgage Pfandbriefe in 1H2009 in Euro bn Lehman default By maturity in Euro bn Eurohypo has issued 6 longer-dated Jumbo Mortgage Pfandbriefe: Total volume Euro 9 bn Maturities 5 to 10 years Over 80 % with maturities of 5 years and longer Maturities < 5 years Maturities 5 years and longer 6.0 5.0 ~Euro 3.2 bn ~Euro 14 bn* 4.0 3.0 2.0 1.0 0.0 *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 1 Y 2 Y 3 Y 4 Y 5 Y 6 Y 7 Y 8 Y 9 Y 10Y > 10 Y Basel, 27 August 2009

15 Pfandbrief: Eurohypo has increased issuance and outstandings
Mortgage Pfandbrief new issuance Pfandbrief provides stable access to long-term funding Increased issuance of Mortgage Pfandbriefe also in times of crises Strategic benchmark transactions Stable private placements into domestic and registered markets Funding optimization – focus on covered bond funding after spread widening between secured and unsecured funding Pfandbrief continues to be a hiqh quality product backed by a broad investor base Average funding costs of mortgage Pfandbriefe issued by Eurohypo in 1H2009 were below 90 bps In Euro bn 2H 2009 Outstanding Mortgage Pfandbriefe In Euro bn 50 ** 47.2 47.3* 45.7 45 43.4 40 38.9 35 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Jun 2009 *Not including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 **Including Essen Hyp Basel, 27 August 2009

16 Sound funding mix as of 30 June 2009
Funding structure Euro bn Funding strategy Covered bonds Euro benchmark issuance Utilisation of domestic market Registered Pfandbriefe Private placements Lettres de Gage primarily in Non-Euro currencies (CHF, USD, GBP) Euro bn* Unsecured Careful re-entrance of unsecured market *Not including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 **Including money market transactions, fixed-term deposits and call money Over 50 % funded via covered bonds Further diversification of investor base Basel, 27 August 2009

17 Well diversified covered bond profile as of 30 June 2009
Product mix Euro bn* Eurohypo’s benchmark curve Euro bn Pfandbrief mix Euro bn* *Not including Euro 1.5 bn 10 year Jumbo Mortgage Pfand- briefe issued on 25 June 2009 with value day 2 July 2009 Basel, 27 August 2009

18 Pfandbriefe collateral pools (Eurohypo AG)
03 Pfandbriefe collateral pools (Eurohypo AG) Basel, 27 August 2009

19 **Excluding substitute collateral
Real estate collateral pool of Eurohypo AG as of 30 June 2009 Total** Euro 51.7 bn International real estate loans by country Euro 13.4 bn *Hungary (2.7%), Finland (2.6%), Czech Republic (2.0%), Belgium (0.8%), Romania (0.7%). Slovakia (0.6%), Ireland (0.5%), Lithuania (0.3%), Iceland (0.2%) and Denmark (0.2%) **Excluding substitute collateral Basel, 27 August 2009

20 Real estate collateral pool of Eurohypo AG as of 30 June 2009
Total* Euro 51.7 bn Total by property type* Euro 51.7 bn *Excluding substitute collateral *Excluding substitute collateral Basel, 27 August 2009

21 *Including countries with less than 2.6 %
Public sector collateral pool of Eurohypo AG as of 30 June 2009 Total by type of borrowers Euro 70.4 bn International public sector assets by country Euro 18.5 bn *Including countries with less than 2.6 % Basel, 27 August 2009

22 Public sector collateral pool of Eurohypo AG as of 30 June 2009
Total by internal ratings Euro 70.4 bn AAA: 1.0 to 1.2 AA: 1.4 to 1.6 A: 1.8 to 2.0 BBB: 2.2 to 2.8 NIG/NIR BB: 3.0 to 3.6 B: 3.8 to 5.0 CCC: 5.2 to 5.8 NIG: Non-investment grade NIR: Not internal rated Basel, 27 August 2009

23 Agenda Teil 1: Franz-Josef Kaufmann Head of Capital Markets Funding
Commerzbank Group Teil 2: Reinolf Dibus Member of the Board of Managing Directors Eurohypo Europäische Hypothekenbank S.A. Basel, 27 August 2009

24 Covered Bond Konferenz in Basel 27. August 2009
Covered Bond Recovery Eurohypo Luxemburg Reinolf Dibus : Präsentation der Eurohypo S.A. Luxemburg

25 Inhaltsverzeichnis (Teil 2)
Short Profile und strategische Bedeutung im Konzern Facts and Figures Steuern durch die Krise Ausblick Basel, 27 August 2009

26 Short Profile und strategische Bedeutung
Spezialbankprinzip: Beschränkung auf risikoarmes Kommunal-Kreditgeschäft 100% Tochter der Eurohypo AG, Teil des Commerzbank Konzerns Komplementäres Geschäftsmodell für Public Finance zur Eurohypo AG - “deckungsfähige Kommunaldarlehen”: Definition nach Luxemburger Gesetz - erweiterter geografischer Rahmen (OECD) Komplementäres Funding - Lettres de Gage Emissionen mit starker Gewichtung der Fremdwährungen - EZB- und Repogeschäft zur kurzfristigen Liquiditätssicherung - konzerninternes unsecured Funding Basel, 27 August 2009

27 Facts and Figures: Bilanzkennzahlen Lux Gaap
Bilanzzahlen in mio EUR Bilanzsumme 24.538 25.121 26.186 25.793 Lettres de Gage Umlauf 15.801 16.616 17.140 16.581 Repogeschäfte 4.056 4.432 5.550 5.829 EZB Tender Geschäfte 1.312 1.105 600 217 GuV: Zinsüberschuss 38,7 72,3 40,5 39,4 Gewinn vor Steuern 25,7 63,0 82,9 40,9 Kennzahlen: ROE vor Steuern 16,4 22,4 30,9 15,8 Cost Income Ratio 9,3 9,8 19,0 17,8 Stabile Erträge auch in der Krise Keine Impairments durch Kreditausfälle Solide Refinanzierung Basel, 27 August 2009

28 Refinanzierungsübersicht absolute Beträge mio EUR und prozentual
Fokus auf der besicherten Refinanzierung: - Lettres de Gage - Repo - EZB Aus Kostengründen werden fällige Lettre de Gage nicht ersetzt: => stabiler Zinsertrag Strategischer Assetabbau auf Druck der EU Komission lässt kaum Kreditneu-geschäft zu Basel, 27 August 2009

29 Kreditportfolio Eurohypo S.A. per 30.06.2009
Aufstellung nach Ländern in mio EUR und Anzahl der Debitoren Mio EUR Anzahl Debitoren Basel, 27 August 2009

30 Lettres de Gage Publiques: Deckungsstock Eurohypo S.A. per 30.06.2009
Nach internen Ratings* EUR 16.7 mrd Nach Land* EUR 16.7 mrd *Nach Swap Betrachtung Basel, 27 August 2009

31 Lettres de Gage Publiques: Deckungsstock Eurohypo S. A. per 30
Lettres de Gage Publiques: Deckungsstock Eurohypo S.A. per 30. Juni 2009 Deckungsstock nach Währung* EUR 16.7 mrd Lettres de Gage Publiques nach Währung* EUR 14.8 mrd *Nominalbetrag nach Swap Zero bonds mit Zeitwert Basel, 27 August 2009

32 Entwicklung Deckungsstock nach internem Rating und Überdeckung
Breit diversifizierter Deckungsstock nach Ländern und Emittenten Kreditengagements im investmentgrade Bereich Überdeckung über das gesetzliche Mass hinaus Mio EUR Basel, 27 August 2009

33 FitchRatings FitchRatings
Ratings per FitchRatings The McGraw•Hill Companies The McGraw•Hill Companies FitchRatings Basel, 27 August 2009

34 Covered Bond Markt Luxemburg
Mio EUR 34.358 % % ,% % 15.826 46% Gesundes Wachstum seit seiner Einführung mit neuen Emittenten und neuen Emissionswährungen Eurohypo S.A. führender Emittent von Lettres de Gage Gesetz wurde weiter modernisiert und aktualisiert Darstellung: Pre-Swap Betrachtung Zeros zum Endwert keine Beachtung von Kündigungsrechten Basel, 27 August 2009 Source: Company Data

35 Novellierung des Luxemburger Pfandbriefgesetzes vom 21.10.2008
Möglichkeit neuer Mobiliarpfandbriefe für Sachwerte, die in einem öffentlichen Register in der OECD geführt werden Beleihungswert für private Immobilienfinanzierung auf 80% angehoben Emissionsgrenze des 60-fachen Eigenkapitals aufgehoben Einführung einer gesetzlichen Überdeckung von 2% der umlaufenden Pfandbriefe auf nominaler und barwertiger Basis ABS können nach dem dem Lux. Gesetz deckungsfähig sein, wenn sie ein Mindestrating von AA-/Aa3 aufweisen und wenn: - 90% der verbrieften Aktiva selbst deckungsfähig sind, dann unbegrenzt mindestens 50% der verbrieften Aktiva selbst deckungsfähig sind, dann ist ihr Anteil auf 20% des Deckungsstocks begrenzt Begrenzung des Anteils von nicht deckungsfähigen Aktiva im Deckungsstock auf 10% der Deckungsmasse Basel, 27 August 2009

36 Disclaimer The information contained herein was prepared by Eurohypo which does not undertake to influence your opinion on the information contained herein. It is furnished for your information only. It is not an offer to buy, sell or hold any securities. Though the figures are generated carefully, no representation or warranty, expressed or implied, is made as to and no reliance should be placed on the accuracy, completeness or correctness of any information contained herein. Eurohypo shall not have any liability whatsoever for any loss howsoever arising from, related to or in connection with any use of any of the information contained herein. The investments discussed or recommended in any of these presentations may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advisers as they believe necessary. Be aware of the date of presentation and possible amendment thereafter. The information might not be amended or updated. Third persons may receive other or updated information, before it is made available to the use of this service. This presentation may be restricted by law in certain jurisdictions. Persons into whose possession this presentation comes are required to inform themselves about and observe any such restrictions. The information contained herein may not be used by any person in any such jurisdiction in which it is restricted by law. These materials are not an offer for sale of securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be sold in the United States absent registration or an exemption from registration under the Securities Act. Basel, 27 August 2009

37 EUROHYPO AG Contacts Helfmann-Park 5 D - 65760 Eschborn Germany
Franz-Josef Kaufmann Tel.: +49 – 69 – 136 – 81109 Head of Capital Markets Funding Commerzbank Group Rainer Mastenbroek Tel.: +49 – 69 – 136 – 44883 Head of Covered Bond Funding Commerzbank Group Libor Vincent Tel.: +49 – 69 – 2548 – 26519 Head of Capital Market Communication EUROHYPO Europäische Hypothekenbank S.A. Airport Center, 5, Rue Heienhaff L Senningerberg Luxembourg Reinolf Dibus Tel.: +352 – 263 – Member of the Board of Managing Directors Peter H. Meyer Tel.: +352 – 263 – Head of ALM and Portfoliomanagement Ralf Heilmann Tel.: +352 – 263 – Head of Funding Basel, 27 August 2009