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Add Value for Investors.Investor Relations Presentation from Baader Bank

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December 2019

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Content

December 2019 | Add Value for Investors

1. Who we are2. How we act3. How we perform4. Why to invest

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1. Who we are

Baader Bank. The Investment Bank of the Future. A Market Leader. Financially strong. Focused on Technology.

MISSION

VISION

We are the bank for the capital market. We make it possible for our clients to access the international capital markets and invest in financial products in an effective, efficient and secure manner. In doing so, we generate added value for our customers by using the latest developments in the banking industry - for products, processes and technology.

ENABLEChange in Banking


Shareholder Structure**

1. Who we are

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Baader Bank at a Glance – Key Company Facts

30,98%

0,30%

5,43%

63,29% Free FloatUto BaaderUbtrend GmbH & Co. KGBaader Beteiligungs-GmbH

*as of 30 September 2019 / ** 1 October 2019

Key figures

Total assets ≈ EUR 654.8mn

Market capitalisation ≈ EUR 50.5mn

Total equity ≈ EUR 78.9mn

Total equity ratio ≈ 12.9%

52W high / low 1.93 / 0.92 Euro

Home exchange Munich / m:access

LocationsContinental Europe Dusseldorf Frankfurt Munich (HQ) Stuttgart Zurich

North America New York

United Kingdom London

Number of Employees**Baader Bank Group 403

Baader Bank AG 369

As a family-run, full-service bank headquartered in Unterschleissheim near Munich with around 400 employees, it is active in the business lines of Market Making, Capital Markets, Multi Asset Brokerage, Asset Management Services, Banking Services and Research.


1. Who we are

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Baader Bank at a Glance – Baader Bank Group

100.00%100.00% 75.00%

100.00%100.00%

Baader Helvea Ltd.London, UK

Baader Helvea Inc.New York, USA

100.00%

19.90%

Baader Bank AGUnterschleissheim, Germany

Baader Helvea AGZurich, Switzerland

Associated Companies

Strategical Investments

Financial Investments

Baader & Heins Capital Management AGUnterschleissheim, Germany

Selan Holding GmbHUnterschleissheim, Germany

Selan d.o.o.Senj, Croatia

Vjetropark Vratarusa d.o.o.Senj, Croatia

Conservative ConceptPortfolio Management AGFrankfurt/Main, Germany

AlphaValue SAParis, France

5.39%


1. Who we are

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Baader Bank at a Glance – Business Lines

Baader Bank

/ Multi Asset Brokerage/ Market Making

/ Asset Management Services/ Banking Services

/ Research

/ Capital MarketsConsulting and support for equity capital markets transaction

Executing securities orders on behalf of the client

Services of assetmanagers

Services for accounts / depositassets

Company, sector and macro analysis

Quoting of financial instruments


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Content



Strengthen our core business

areas

2. How we act

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Trading withhighest quality

ComprehensiveSecurity- and

Risk-management

Grow in a controlled and profitable way

Drive aheadwith

digitalization

Strategy and USP – #WeEnable Change in Banking


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2. How we actStrategy and USP – Integrated business model and cross selling potential

Business volume fromClients

Order volume fromSecurities Trading

Volume fromTransactions

Volume fromAssets under Management

Other Volume from Credit Business

Trading, settlement and

bank infrastructure

+ regulatory services for third parties

The heart of the Enable-Strategy

Our efficient trading, settlement and bank infrastructure


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Content



3. How we perform

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Financials – Group Nine Months Results 2019 before taxEUR‘000 9M 20199M 2018

-7.130

-1.945

-8.000

-7.000

-6.000

-5.000

-4.000

-3.000

-2.000

-1.000

0


3. How we perform

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Financials – Total Revenues and Results Components of Baader Bank Group EUR mn 9M 20199M 2018

72,5

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

33,6

28,9

9,5

0,534,6 25,2 9,7 -0,3Trading Profit/Loss Net Commission Income Revenues Other

–12,8 %

+2,1 % = 36%ofIncome

= 50%ofIncome

69,20,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

+3,0 %


–4,5 %

Total Revenues

37,7

31,6

8,1

3. How we perform

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Financials – Expenses, Depreciation, Amortisation and Write-DownsEUR mn 9M 20199M 2018

77,4

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

–5,5 %

34,9 31,7 6,6

Personnel Expenses Other Administrative Expenses Depreciation

+0,3 %

–18,5 %

–7,4 %


Total Expenses

73,20,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

3. How we perform

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Capital Ratios, Total Assets, Operating Cash Flow% EUR mn

Operating Cash Flow

30/9/201931/12/2018 9M 20199M 2018

10,7%

13,6%

11,1%

12,9%

Balance Sheet Equity Ratio Supervisory Capital Ratio

5,2

706,5

1,6654,8

Total Assets


4. Why to invest

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Equity Story – Add Value for Investors … with Optimisation of the Business Fundamentals

Product providers and foreign investments sold Strategic investment with AlphaValue Group restructuring completed

✓Group Structure

Equity StoryPromising optimisation of our key business principles as a basis for a significant improvement in earnings and therefore valuation potential in the share.


4. Why to invest

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✓Overall banking and business unit strategies adjusted

Strategy review implemented Strategy project completed Business line strategies developed Measures in implemetation or already completed



4. Why to invest

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Product providers and foreign investments sold Strategic investment with AlphaValue Group restructuring completed

✓Group Structure



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Content



4. Why to invest

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Equity Story – Add Value for Investors … 4 good Reasons

We want to make sustainable increases to our earning power and further optimise our cost base and the effectiveness and efficiency of our processes. In the past, we were unable to generate satisfactory income and earnings figures. Compared with the second half of the previous year, we have so far been able to achieve a noticeable improvement. This is due to an intensive strategic and business-oriented realignment, which will benefit us immensely in the future.

Equity StoryFour good reasons for investingin Baader Bank shares.


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4. Why to invest

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We are well-positioned in the GSA region with six promising business lines. We have a unique set of business lines, activities, and products in the German-speaking banking and investment sector. The resulting market potential that can be achieved has caused an enormous valuation gap with regard to the existing haircut for banking stocks. Equity Story

Four good reasons for investingin Baader Bank shares.


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4. Why to invest

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As one of the most innovative banks we are prepared for the securities and banking business of the future. We have been searching for the best solutions for our clients ever since the start of the technological transformation within the banking industry. We use our development network to connect new markets and implement new products, develop new processes and thus facilitate new business potential for our clients and for ourselves. We have been instrumental in shaping the changes in the financial sector, e.g. in developing fintechs in the GSA region, as a banking and technology partner, and our expertise enables us to benefit from further developments in these markets.



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4. Why to invest

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We offer an attractive dividend policy. Since it was founded as a joint-stock company, Baader Bank has maintained a distribution rate of 25% of the consolidated earnings allocated to the company’s shareholders.



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4. Why to invest

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Development of the Share Prices 01|2018 – 10|2019 of Baader Bank and its Peers%


Contact

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Your IR Contact Persons at Baader BankNico Baader Florian E. SchopfCEO Managing Director, Head of Group Strategy & Communication

Company Spokesperson

Baader Bank Aktiengesellschaft Baader Bank AktiengesellschaftWeihenstephaner Strasse 4 Weihenstephaner Strasse 485716 Unterschleissheim 85716 UnterschleissheimGermany Germany

T +49 89 5150 1042 T +49 89 5150 1013M +49 160 718 88 26

E [email protected] E [email protected]

www.baaderbank.de www.baaderbank.de


www.baaderbank.de

DisclaimerThis document was prepared by Baader Bank AG solely for informational purposes. Any other use or any reproduction of the Document or the information contained therein is not permitted. This document is to be understood as incomplete, without reference to, and should be viewed only in conjunction with the oral briefing by Baader Bank AG.The information set forth in this document has been diligently compiled by Baader Bank AG and is partially based on publicly available sources and data supplied by third parties believed to be reliable. Baader Bank AG does not warrant the accuracy or completeness of such information. The information does not constitute investment advice, an investment recommendation, an invitation to submit an offer for any financial instruments. This document is not an investment recommendation pursuant to Art. 20 of Regulation (EU) No 596/2014 of 16 April 2014 and the Commission Delegated Regulation 106/958 of 9 March 2016 and consequently does not meet all legal requirements to ensure the independence of investment recommendations and is also not subject to the ban on trading in connection with the publication of investment recommendations.By providing this information, the recipient thereof does neither become a customer of Baader Bank AG nor do any obligations of Baader Bank AG towards the recipient arise in connection therewith, in particular no agreement for the provision of information is entered into between Baader Bank AG and the recipient of this information.Any information contained in this document reflects the level of knowledge of Baader Bank AG as of this document’s printing date and is subject to change. Baader is not obliged to update or keep current the information contained in this document. The information as stipulated in this document is neither intended to constitute nor to substitute any legal or tax advice. Information on the treatment of conflicts of interest at Baader Bank AG are accessible under http://www.baaderbank.de/Customer_service/Legal_Documents_Baader_Bank.Neither Baader Bank AG nor any of its affiliates nor directors or employees of Baader Bank AG and its affiliates shall be liable for any loss or damage, cost or expense whatsoever, direct or indirect, arising from any access to or use of the Presentation or the information therein to the extent legally permissible.Transmission or reproduction of this document without prior written consent from Baader Bank AG is not permitted. This document may include links to third-party websites or provide references thereto. Third-party websites are not under the control of Baader Bank AG. Baader Bank AG does not assume any responsibility for the content of third-party websites or any further link in such third-party websites.Copyright © 2019: Published by Baader Bank Aktiengesellschaft, Weihenstephaner Strasse 4, 85716 Unterschleissheim, Germany.Baader Bank AG is a stock corporation (Aktiengesellschaft) organized under the laws of the Federal Republic of Germany with its principal place of business in Unterschleissheim. It is registered with the District Court (Amtsgericht) in Munich under No. HRB 121537 and supervised by the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), Marie-Curie-Strasse 24-28, 60439 Frankfurt am Main and Graurheindorfer Strasse 108, 53117 Bonn. The value added tax identification number of Baader Bank AG is DE 114123893. The Chairman of the Supervisory Board is Dr. Horst Schiessl. The members of the Management Board are Nico Baader (Chairman), Dieter Brichmann (Deputy Chairman), and Oliver Riedel.For further information on Baader Bank AG, please refer to its website www.baaderbank.de. If you have any questions concerning this publication, please contact us by phone: +49 89 5150 0 or fax: +49 89 5150 1111.

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