State of Berlin. Investor Presentation. June Page 1. Land Berlin/Thie

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State of Berlin

Investor Presentation

This document contains neither an offer to sell securities nor an invitation to submit an offer to buy securities. The information contained herein may be completed and supplemented at any time; it does not constitute an investment recommendation nor should it serve as a basis for investment decisions. The State of Berlin assumes no responsibility or reliability for the completeness or correctness of the information contained herein.

June 2013

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Investor Presentation June 2013 Page 2

Content



Metropolis – political and cultural

centre, attractive business location



Budget – sustainable consolidation



Capital markets – professional

treasury management

Berlin – An outstanding investment opportunity

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 Capital of the Federal Republic of

Germany and home to the German government

 Largest German city with 3.5m

inhabitants and 8th_{largest state by}

inhabitants

 Political centre with numerous

organisations close to the government as well as embassies and consulates of 146 countries

 Prime cultural and touristic location in

Europe next to London and Paris

Metropolis Berlin

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Efficient cooperation between leading research institutes and the private sector

 Media and communications

 Medical- and biotechnology

 Environmental technology

 Transportation technology

Important location for internationally well-known companies

Successful structural transformation

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 After the reunification, Berlin’s GDP

growth has surpassed the national average for the first time in 2005

 Nominal GDP increased a solid

2.4% from EUR 101.1bn in 2011 to EUR 103.6bn in 2012

 In real terms the State of Berlin was

less affected by the economic down-turn (-0.6%) than Germany as a whole (-5.1%) in 2009

Growth in real GDP

-6% -5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% 2005 2006 2007 2008 2009 2010 2011 2012 Berlin National average

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 Favourable office and industrial space

 Unique science and research

environment (four universities plus ten technical colleges and institutions of higher education with a total of more than 147,000 students)

 Science and technology park

Berlin-Adlershof with national importance thanks to eleven independent research institutes, six science institutes of Humboldt-University, 425 technology-oriented companies

 The transport infrastructure of the

capital belongs to the most modern and most efficient in Europe.

Prime infrastructure

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Revenues and Expenditures

Investor Presentation June 2013

22 574 20 860 21 039 21 910 21 892 17 339 21 840 19 599 20 794 22 568 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenditures Revenues

April 2013. Million Euros.

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1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2005 2006 2007 2008 2009 2010 2011 2012 20 7 15 1 19 4 95 0 18 3 86 3 16 6 88 5 15 3 5 75 14 5 08 2 13 5 89 1 12 6 03 8 114 890 10 9 87 0 10 6 69 3 10 5 00 0

Public Sector Employees

April 2013.

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Expenditure Increase 2001 to 2011

April 2013.

Average 17,9% 2,4% 8,9% 8,9% 9,8% 10,2% 10,5% 14,2% 14,6% 17,1% 20,6% 21,1% 21,3% 24,1% 25,0% 27,9% 28,9% BERLIN Bremen Thüringen Sachsen-Anhalt Mecklenburg-Vorp. Brandenburg Sachsen Baden-Württemberg Niedersachsen Hamburg Schleswig-Holstein Nordrhein-Westfalen Rheinland-Pfalz Bayern Saarland Hessen Page 9

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Financial Restructuring Process according to Stability Law

Stability Council

Federal and State Ministers of Finance1 (18) Yearly Reports on Budget Indicators Imminent Budget Distress 2020 2010

 Decrease of Net Borrowing

 Naming the Measures

 Bi-yearly Reports

April 2013. 1 including Federal Minister of Economics

Threshold Values Evaluation Deficit per capita

Net New Borrowings p.c. Debt Level p.c. Interest-Tax-Relation

Financial Restructuring Agreement

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 Successful financial policy through

consolidation, growth of tax revenues and reinforcement of own revenues

 EUR 283mn debt repayment in 2012

and no net new borrowing after 2014

 Reduction of gross funding from EUR

8.3bn in 2013 to approx. EUR 6.7bn in 2016

 Total debt as of Dec 31st_{, 2012:}

EUR 61.9bn

Budget discipline

Net New Borrowing

(actual and expected results in EUR mn)

-964 1421 1402 1159 -283 509 ₄₈₅ 35 -251 -1000 -600 -200 200 600 1000 1400 1800 2008 2009 2010 2011 2012 2013 2014 2015

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Net New Borrowing: Cutback until 2015

1 40 2 1 15 9 - 283 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

April 2013. Million Euros. 2012 according to the temporary balance sheet.

German debt brake until 2015 according to

planning of the Senate

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 “Frequent issuer” with up to two

benchmarks per year

 Extension of the existing benchmark

curve

 Broadening of the investor base and

increased investor relations

 Foreign currency issues with

stand-alone documentation

 Private placements and German

domestic “Schuldscheine” remain

important pillars of the funding strategy

Berlin’s funding strategy Maturity profile

Capital markets

0,000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 up to and including 4 years longer than 4 including 7 years longer than 7 including 10 years longer than 10 years Dec.31, 2012 €mn

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Berlin – An outstanding investment opportunity

 0%-risk weighting in most European countries

 Excellent credit quality with two issuer ratings:

- AAA with stable outlook by Fitch

- Aa1 with negative outlook by Moody’s following the outlook change for the German sovereign rating  ECB eligibility

 Appealing yield pick-up relative to comparable government bonds

Year Denotation ISIN Volume in € Coupon Maturity

2004 LSA A 190 DE000A0BNQX 2.000.000.000 4,250% 15.09.2014 2005 LSA A 196 DE000A0DRH7 1.750.000.000 3,750% 23.03.2015 2005 LSA A 204 DE000A0EY7Z 1.750.000.000 3,125% 14.09.2015 2006 LSA A 214 DE000A0H5VC 1.500.000.000 4,125% 24.05.2016 2007 LSA A 226 DE000A0KAV2 1.000.000.000 4,250% 25.04.2022 2007 LSA A 230 DE000A0NKUD 1.250.000.000 4,875% 26.06.2017 2009 LSA A 264 DE000A0XYS7 1.250.000.000 3,500% 13.02.2014 2011 LSA A 336 DE000A1H3YM 1.000.000.000 3,000% 29.03.2016 2011 LSA A 340 DE000A1H3YR 1.000.000.000 2,875% 08.09.2016 2011 LSA A 352 DE000A1K0FR 1.250.000.000 3,125% 17.08.2021

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Secondary spread performance

-160 -120 -80 -40 0 40 80 120 11-05 11-11 12-05 12-11 13-05 bp

BERGER 3.75% 3/15 BERGER 3.125% 8/21 BERGER 1.75% 1/17 DBR 3.75% 1/17

DBR 2.25% 9/21 iBoxx € Sub-Sovereigns 3-5 iBoxx € Sub-Sovereigns 5-7 OBL 1.75% 10/15

Berlin offers an attractive yield pick-up vs. Bunds while trading less volatile than European peers

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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

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Our city is full of life – it’s creative, ener-getic and cutting-edge. This city 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 by the Spree “the place to be.”