Company Profile BAWAG P.S.K.

BANKING
SEPTEMBER 8, 2016
BAWAG P.S.K.
COMPANY PROFILE
Vienna, Austria
Company Overview
Table of Contents:
COMPANY OVERVIEW
FINANCIAL HIGHLIGHTS
(AS REPORTED)
BUSINESS ACTIVITIES
DISTRIBUTION CAPACITY AND MARKET
SHARE
OWNERSHIP AND STRUCTURE
Ownership Structure
Subsidiaries and Associates
COMPANY MANAGEMENT
COMPANY HISTORY
PEER GROUP
RELATED WEBSITES AND INFORMATION
SOURCES
MOODY’S RELATED RESEARCH
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2
3
4
5
6
7
8
10
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Analyst Contacts:
FRANKFURT
Bank für Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG (BAWAG P.S.K.) operates
as a universal bank in Austria. As of 31 December 2015, it held a 4.2% share among Austrian
banking institutions, based on its total consolidated assets of €35.7 billion (30 June 2016: €34.7
billion).
BAWAG P.S.K. offers a range of retail and corporate banking products, including deposit-taking
facilities, loans and investment services. Moreover, it provides international business products,
such as commercial real-estate financing, capital market solutions, and securities and asset
management services. While the bank operates primarily in Austria, it also has a presence in core
Western European markets.
The bank was established in 2005 as a result of the merger of two Austrian banks, the trade union
Bank für Arbeit und Wirtschaft (BAWAG) and the postal savings bank Oesterreichische
Postsparkasse AG (P.S.K.). As of 31 December 2015, the bank’s largest shareholders were Cerberus
Capital Management L.P. (Cerberus, 52.14% stake) and GoldenTree Asset Management L.P.
(GoldenTree, 39.77%).
+49.69.70730.700
Torsten-Alexander
+49.69.70730.796
Thebes
Associate Analyst
[email protected]
Bernhard Held, CFA
+49.69.70730.973
Vice President - Senior Analyst
[email protected]
Carola Schuler
+49.69.70730.766
Managing Director - Banking
[email protected]
This report, exclusively provided to you by
Moody’s, presents a convenient summary of
as reported, publicly available information.
The information is not adjusted for Moody’s
analytic purposes. For Moody’s Ratings,
Opinion and Analytics on this company,
please [Click here]. To access the latest
Moody’s Credit Opinion on this company,
please [Click here].
Source: Company Reports, Moody’s Research, Österreichische Nationalbank (OeNB)
BANKING
Financial Highlights (as Reported)
Note: The financials presented below are those reported by the entity and are not adjusted for Moody’s analytic
purposes. For Moody’s generated ratios on BAWAG P.S.K., please see the <issuer page on moodys.com.>
EXHIBIT 1
Latest Full-Year Results
(in € Million)
31-Dec-15
31-Dec-14
31-Dec-13
% Change
15/14
% Change
14/13
Total Assets
35,708
34,651
36,402
3.0
(4.8)
Total Shareholders’ Equity
2,957
2,405
2,798
22.9
(14.0)
Shareholders’ Equity excluding Minority Interest
2,956
2,405
2,403
22.9
0.1
Own Funds
N/A
2,672
2,991
N/A
(10.7)
Common Equity Tier 1 Ratio (%)
12.9
12.1
9.4
80 bps
270 bps
Net Income
418
334
231
25.2
44.8
Net Income Attributable to Equity Holders
418
333
229
25.5
45.4
Note: The financials for 2015, except for net income, reflect the consolidated results of BAWAG Holding GmbH, while those for 2014 and 2013 reflect
the consolidated results of BAWAG P.S.K. group (see also Exhibit 7). Net income in 2015 was reported at the level of BAWAG P.S.K. group.
Source: Company Reports
EXHIBIT 2
Latest First-Half Results
(in € Million)
30-June-16
30-June-15
Total Assets
% Change
16/15
34,729
34,005
2.1
Total Shareholders’ Equity
3,226
2,791
15.6
Shareholders’ Equity excluding Minority Interest
3,224
2,791
15.5
Own Funds
N/A
N/A
N/A
Common Equity Tier 1 Ratio (%)
15.1
14.3
80 bps
Net Income
284
209
36.0
Net Income Attributable to Equity Holders
284
209
35.9
Note: The financials reflect the consolidated results of BAWAG Holding GmbH, except for Net Income, which reflects the consolidated results of
BAWAG P.S.K. group.
Source: Company Report
This publication does not announce
a credit rating action. For any
credit ratings referenced in this
publication, please see the ratings
tab on the issuer/entity page on
www.moodys.com for the most
updated credit rating action
information and rating history.
2
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Business Activities
BAWAG P.S.K. offers a range of retail and corporate banking products and services.
It operates through the following six key segments: BAWAG P.S.K. Retail; easygroup; DACH 1 Corporates and
Public Sector; International Business; Treasury Services and Markets; and the Corporate Center. During the
first half-year ended 30 June 2016 (H1 2016), the largest contributor to the bank’s net interest income was
the BAWAG P.S.K. Retail segment.
BAWAG P.S.K. Retail: This segment, which in H1 2016 accounted for 45.7% of the bank’s net interest
income, provides private customers and small businesses with lending, investment, insurance, real estate
leasing and social housing-related services. As of 30 June 2016, it reported total business volume of €9.3
billion.
easygroup: This segment, which in H1 2016 accounted for 14.7% of the bank’s net interest income,
provides private and small business customers, both domestically and internationally, with savings accounts,
loans, bank and credit cards, payment processing, and automobile and mobile leasing services. As of 30 June
2016, this segment reported total consolidated assets of €3.2 billion.
DACH Corporates and Public Sector: This segment, which in H1 2016 accounted for 10.9% of the bank’s
net interest income, includes the bank’s corporate and public lending business, as well as other fee-driven
financial services for domestic customers (i.e. including, but not limited to, cross-border activities). As of 30
June 2016, it reported total consolidated assets of €7.4 billion.
International Business: This segment, which in H1 2016 accounted for 18.3% of the bank’s net interest
income, offers lending activities to international corporates as well as international real estate financing
activities outside the DACH region through transactions originated by the bank’s London office. As of 30
June 2016, this segment reported total consolidated assets of €5.0 billion.
Treasury Services and Markets: This segment, which in H1 2016 accounted for 7.6% of the bank’s net
interest income, conducts trading and investment activities for the bank’s customers, including assetliability management services. It also manages the bank’s liquidity, and the investment results of its
portfolio of financial securities. As of 30 June 2016, this segment reported total consolidated assets of €6.3
billion.
Corporate Center: This segment, which accounted for 2.8% of the bank’s net interest income in H1 2016,
performs central administrative functions, including providing legal services, and managing risks and group
asset-liabilities. It also comprises unallocated expenses related to group-wide support functions, such as risk
management, regulatory reporting and hedging activities. It includes results from the bank’s subsidiaries and
participatory holdings. As of 30 June 2016, this segment reported total consolidated assets of €3.4 billion.
Source: Company Report
1
3
The DACH region comprises Germany, Austria and Switzerland
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
EXHIBIT 3
Business Segment
(% of Net Interest Income, consolidated, for H1 2016)
Corporate Center
2.8%
Treasury Services and
Markets
7.6%
DACH Corporates and
Public Sector
10.9%
BAWAG P.S.K. Retail
45.7%
easygroup
14.7%
International Business
18.3%
Source: Company Report (interim report June 2016, Pg: 45)
EXHIBIT 4
Profit/Loss Before Tax by Business Segment
(consolidated, in € Million)
H1 June 2015
H1 June 2016
100
82.9
80
80.1
54.9
60
44.6
55.8
44.6
40
36.0
21.2
16.8
20
20.9
6.8
7.0
0
BAWAG P.S.K. Retail
easygroup
DACH Corporates and International Business Treasury Services and
Public Sector
Markets
Corporate Center
Source: Company Report (interim report June 2016, Pg: 45 and 46)
Distribution Capacity and Market Share
As of 31 December 2015, BAWAG P.S.K. operated through a centrally managed distribution network in
Austria, comprising approximately 480 branches, which are operated in cooperation with Österreichische
Post AG (Austrian Post). In October 2014, it opened a branch office in London.
BAWAG P.S.K. also provides e-banking services and an online customer platform, as well as direct banking
operations carried out through its wholly owned subsidiary easybank AG, in addition to its nationwide selfservice terminal network.
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SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Geographically, the bank’s loan portfolio was distributed as follows:
EXHIBIT 5
BAWAG P.S.K.
Loans (%)
Geographical Segment
31-Dec-15
31-Dec-14
Western Europe
89
89
North America
8
6
Southern Europe
1
3
Central and Eastern Europe (CEE)
1
1
Others
1
1
100
100
Total
Source: Company Report
BAWAG P.S.K. operates a comprehensive retail banking franchise, with a market share of over 5.6% in terms
of key deposit products in Austria, as of 31 December 2015.
The bank’s market shares among Austrian banking institutions were as follows:
EXHIBIT 6
Market Shares of BAWAG P.S.K.
(% Share)
31-Mar-16
31-Dec-15
31-Dec-14
Total Loans
6.2
6.4
6.0
Total Assets
4.1
4.2
3.9
Note: “Total Loans” for the Austrian banking sector is calculated by adding “Loans to domestic non-banks” and “Loans to foreign non-banks”
Source: Company Reports, Moody’s Research, OeNB
Ownership and Structure
As of 31 December 2015, BAWAG P.S.K. had 250 million shares outstanding.
The share capital of BAWAG P.S.K. was primarily owned by Cerberus (52.14% stake) and GoldenTree
(39.77%) through BAWAG Holding Gmbh, which is wholly owned by the Dutch financial holding company
Promontoria Sacher Holding NV. The remaining shares were held by a variety of Austrian and non-Austrian
minorities.
Source: Company Report
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SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Ownership Structure
EXHIBIT 7
Ownership Structure as of 31 December 2015
Source: Company Reports
6
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Subsidiaries and Associates
As of 31 December 2015, the bank’s consolidated subsidiaries were as follows:
EXHIBIT 8
BAWAG P.S.K.
Subsidiary
Location
% Held
BAWAG Malta Bank Limited 2
Sliema
100.00
BAWAG P.S.K. Wohnbaubank Aktiengesellschaft
Vienna
100.00
easybank AG
Vienna
100.00
BAWAG P.S.K. IMMOBILIEN GmbH
Vienna
100.00
BPI Holding GmbH & Co KG.
Vienna
100.00
R & B Leasinggesellschaft m.b.H.
Vienna
100.00
RVG Realitätenverwertungsgesellschaft m.b.H.
Vienna
100.00
Banks
Real Estate
Leasing
2
7
ACP IT-Finanzierungs GmbH
Vienna
75.00
BAWAG P.S.K. IMMOBILIENLEASING GmbH
Vienna
100.00
BAWAG P.S.K. Kommerzleasing GmbH
Vienna
100.00
BAWAG P.S.K. LEASING GmbH & Co. MOBILIENLEASING KG.
Vienna
100.00
BAWAG P.S.K. LEASING GmbH
Vienna
100.00
BAWAG P.S.K. LEASING Holding GmbH
Vienna
100.00
BAWAG P.S.K. MOBILIENLEASING GmbH
Vienna
100.00
CVG Immobilien GmbH
Vienna
100.00
HBV Holding und Beteiligungsverwaltung GmbH
Vienna
100.00
KLB Baulandentwicklung GmbH
Vienna
100.00
Leasing-west GmbH
Kiefersfelden
100.00
M. Sittikus Str. 10 Errichtungs GmbH
Vienna
100.00
P.S.K. IMMOBILIENLEASING GmbH
Vienna
100.00
RF 17 BAWAG Immobilienleasing GmbH
Vienna
100.00
RF fünfzehn BAWAG Mobilien-Leasing Gesellschaft m.b.H.
Vienna
100.00
RF zwölf BAWAG Leasing Gesellschaft m.b.H.
Vienna
100.00
START Immobilienleasing GmbH
Vienna
100.00
VB Leasing Finanzierungsgesellschaft m.b.H.
Vienna
100.00
VB Technologie Finanzierungs GmbH
Vienna
100.00
Entity was sold and deconsolidated in January 2016.
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
EXHIBIT 8
BAWAG P.S.K.
Subsidiary
Location
% Held
BAWAG P.S.K. Versicherung Aktiengesellschaft
Vienna
25.00
E2E Kreditmanagement GmbH
Vienna
100.00
E2E Service Center Holding GmbH
Vienna
100.00
E2E Transaktionsmanagement GmbH
Vienna
100.00
PSA Payment Services Austria GmbH
Vienna
20.82
P.S.K. Beteiligungsverwaltung GmbH
Vienna
100.00
Other Non-Credit Institutions
Source: Company Report
Company Management
8
SEPTEMBER 8, 2016
Managing Board
Current Title
Responsibilities
Byron Haynes
Chairman of the Managing Board and Chief Executive
Officer, Retail Banking and Small Business;
Wiener Börse AG, Bausparkasse Wüstenrot AG, BAWAG
P.S.K. Versicherung AG and CEESEG Aktiengesellschaft:
Member of the Supervisory Board
Corporate Office, Human Resources, Legal,
Retail Sales, Marketing and Products, Digital
Banking
Corey Pinkston
Member of the Managing Board and Head of Corporate
Lending and Investments, and Treasury Services and
Markets
Austrian Corporate Business, International
Business, Treasury Services and Markets,
Operations Capital Markets
Anas Abuzaakouk Member of the Managing Board and Chief Financial
Officer
Integration Management, Controlling and
ALM, Accounting and Participations,
Procurement, Real Estate and Facility
Management
Stefan Barth
Member of the Managing Board and Chief Risk Officer
Strategic Risk, Corporate and Institutional
Risk, Retail Risk and Administration
Sat Shah
Member of the Managing Board and Chief Operating
Officer
Strategy and Communications, Operations,
Quality Management, Information
Technology
Supervisory Board
Affiliation
Committees
Franklin W. Hobbs
Chairman of the Supervisory Board;
Ally Financial, Inc.: Chairperson and Member of the
Supervisory Board;
Molson Coors Brewing Company: Member of the
Supervisory Board
Nomination Committee (C), Remuneration
Committee (C), Committee for Management
Board Matters (C), Related Parties Special Audit
Committee (C)
Keith Tietjen
Deputy Chairman of the Supervisory Board
Audit and Compliance Committee (C),
Remuneration Committee, Committee for
Management Board Matters, Related Parties
Special Audit Committee
Cees Maas
Deputy Chairman of the Supervisory Board
Audit and Compliance Committee, Risk and
Credit Committee, Nomination Committee,
Remuneration Committee, Committee for
Management Board Matters, Related Parties
Special Audit Committee
Pieter Korteweg
Deputy Chairman of the Supervisory Board;
AirCap Holdings NV: Non-Executive Director and
Chairperson
Nomination Committee, Committee for
Management Board Matters
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Supervisory Board
Affiliation
Committees
Frederick S. Haddad Member of the Supervisory Board
Audit and Compliance Committee, Risk and
Credit Committee, Nomination Committee,
Remuneration Committee, Committee for
Management Board Matters, Related Parties
Special Audit Committee
Chad A. Leat
Member of the Supervisory Board;
Paceline Holdings and Norwegian Cruise Line
Holdings Ltd.: Member of the Supervisory Board
Risk and Credit Committee (C)
Walter Oblin
Member of the Supervisory Board
Audit and Compliance Committee, Risk and
Credit Committee
André Weiss
Member of the Supervisory Board
N/A
Ingrid Streibel-Zarfl
Member of the Supervisory Board, Works Council
delegate
Audit and Compliance Committee, Risk and
Credit Committee, Nomination Committee,
Remuneration Committee, Related Parties
Special Audit Committee
Beatrix Pröll
Member of the Supervisory Board, Works Council
delegate
Risk and Credit Committee, Nomination
Committee, Remuneration Committee, Related
Parties Special Audit Committee
Konstantin Latsunas Member of the Supervisory Board, Works Council
delegate
Audit and Compliance Committee
Verena Spitz
Member of the Supervisory Board, Works Council
delegate
N/A
Beate Schaffer
State Commissioner
N/A
Markus Chmelik
Deputy State Commissioner
N/A
Note: As of March 2016; (C) = Committee Chairman
Source: Company Reports
EXHIBIT 9
Corporate Governance Structure as of March 2016
Source: Company Report
9
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Company History
BAWAG P.S.K. originated as BAWAG, which had been established in 1922 as a trade union bank, and P.S.K.,
which had been founded in 1883 as a government-owned postal savings bank.
In 1995, Bayerische Landesbank acquired a 46.43% stake in BAWAG, which was sold in 2004 to the
Association of Austrian Trade Unions (OeGB). In 2000, BAWAG (along with an investor consortium)
acquired full ownership of P.S.K., which it merged and fully integrated into the new BAWAG P.S.K. in 2005.
In 2006, the Republic of Austria granted a guarantee to restabilise the bank following a class action suit
against it in the US. Later that year, the OeGB decided to sell its shares in BAWAG P.S.K. to a consortium
managed by Cerberus, comprising Austrian Post, Generali Holding AG and Wuestenrot Verwaltungs- und
Dienstleistungen GmbH, as well as a sub-consortium of several Austrian industrialists. In May 2007, the
consortium completed its acquisition of BAWAG P.S.K. The injection of capital by the new owner replaced
the guarantee granted in favour of the bank by the Republic of Austria.
Over 2007–08, as part of a new strategy to streamline its operations, the bank sold some of its noncore
businesses, including its subsidiaries in Slovakia and the Czech Republic, and several real estate assets.
Furthermore, Sparda Bank AG was merged into the bank.
In 2010, BAWAG P.S.K. started to put its subsidiaries in Ireland into liquidation. Consequently, it liquidated
BAWAG International Finance Ltd. (Ireland) in 2010, Datchet Limited in April 2011, and Polestar Limited and
Shrivenham Limited in 2012. Moreover, the bank has reduced the number of companies active in
Liechtenstein (through mergers) and Jersey (through closings), and has terminated its operations in the UK.
In 2010, it liquidated BAWAG P.S.K. Jersey Auto Finance Ltd., Auto Finance Jersey I Ltd. and Auto Finance
Jersey II Ltd.
During the fourth quarter of 2013, BAWAG P.S.K. merged with Österreichische Verkehrskreditbank AG
(ÖVKB). Consequently, BAWAG P.S.K. took over the rail cargo operations and payment services of Austrian
Railways, which had previously been handled by ÖVKB.
In October 2014, BAWAG P.S.K. signed a definitive agreement to sell its asset management subsidiary,
BAWAG P.S.K. INVEST, to the asset management company Amundi. As part of the agreement, the bank will
continue to distribute its former subsidiary’s products. As of February 2015, BAWAG P.S.K. INVEST was a
wholly owned subsidiary of Amundi. Since November 2014, BAWAG P.S.K., through its ultimate parent
entity Promontoria Sacher Holding N.V., is listed as a “significant supervised entity” in the newly established
single supervisory mechanism and is therefore primarily supervised by the European Central Bank (ECB).
In August 2015, the bank signed the purchase for the domestic leasing operations of the Austrian cooperative Volksbanken sector (VB-Leasing), thereby turning BAWAG P.S.K. into the third-largest automotive
lessor in Austria. In December 2015, BAWAG P.S.K. purchased a UK retail mortgage portfolio in the amount
of GBP 1.8 billion.
In January 2016, BAWAG P.S.K. sold its operations in Malta and in June 2016, the bank announced the
acquisition of start:bausparkasse, an Austrian savings and loan association, as well as IMMO-Bank, an
Austrian financing provider for real estate companies and social housing associations, both formerly
institutions of the Austrian Volksbanken sector.
Source: Company Reports, Moody’s Research
10
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Peer Group
»
Erste Bank
»
Raiffeisen Bank International
»
UniCredit Bank Austria
»
DNB Bank ASA
»
Danske Bank A/S
»
Swedbank AB
»
Commerzbank AG
»
Norddeutsche Landesbank GZ
»
Landesbank Hessen-Thüringen GZ
Related Websites and Information Sources
For additional information, please see:
»
the company’s website: www.bawagpsk.com
»
the central bank’s website: www.oenb.at
»
the national regulator’s website: www.fma.gv.at
»
the ECB’s regulatory website: www.bankingsupervision.europa.eu
MOODY’S has provided links or references to third party World Wide Websites or URLs ("Links or References") solely for your
convenience in locating related information and services. The websites reached through these Links or References have not
necessarily been reviewed by MOODY’S, and are maintained by a third party over which MOODY’S exercises no control.
Accordingly, MOODY’S expressly disclaims any responsibility or liability for the content, the accuracy of the information, and/or
quality of products or services provided by or advertised on any third party web site accessed via a Link or Reference. Moreover,
a Link or Reference does not imply an endorsement of any third party, any website, or the products or services provided by any
third party.
11
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Moody’s Related Research
Credit Opinion:
»
BAWAG P.S.K: Update Following Lowering of Macro Profile
Issuer-specific Research:
»
BAWAG P.S.K.: Strong, Sustainable Profits Buck Trends in the Austrian Banking Sector, June 2016
(1028610)
»
BAWAG P.S.K.’s Improving Profitability and Capital Ratios Are Credit Positive, August 2015 (183600)
Banking System Research:
»
Banking System Outlook: Austria, August 2016 (1035959)
»
Banking System Profile: Austria, August 2016 (191493)
»
Austrian banks will benefit from government plan to reduce bank levy, July 2016 (191008)
»
Austrian application of BRRD to wind down entity Heta sets precedent, March 2015 (1003540)
To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of
this report and that more recent reports may be available. All research may not be available to all clients.
12
SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.
BANKING
Report Number: 191971
Author
Torsten-Alexander Thebes
Editor
Kamin Au
Production Associate
Prabhakaran Ganesan
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MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or
damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by
law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers,
arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR
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Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and
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the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold
ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations —
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equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications
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Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas
Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical
Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and,
consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency
and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated
by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from
JPY200,000 to approximately JPY350,000,000.
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SEPTEMBER 8, 2016
COMPANY PROFILE: BAWAG P.S.K.