As at: April 2018

Raiffeisen Bausparkassein 2017.

Our mission: Making your housing dreams come true!

Ladies and gentlemen,

As always, many people dream of living in their own home. In economically challenging times, Raiffeisen Bausparkasse once again proved in 2017 that it is a competent, reliable and successful partner. A partner who actively supports its customers in making their housing dreams or savings goals become a reality.

2017 has shown that building societies have not gone out of style. Thanks to our constant efforts not to lose track of today’s rapid changes, we have been able to adapt our products to the desires of our customers and remain up-to-date. We are convinced that the topic of building society savings will continue to provide an important foundation for making dreams come true not only for our existing customers, but future ones as well.

We thank you, our customers, for the trust you have placed in us. We would also like to thank all our business partners for their commitment and outstanding collaboration. Last but not least, we thank all our employees for their personal contribution to the success of “our” Raiffeisen Bausparkasse.

The company in briefRaiffeisen Bausparkasse is the institute of Raiffeisen Banking Group Austria that specialises in the financing, maintenance and improvement of residential property. It offers discounted savings contracts as well as tailor-made loans that facilitate the creation of housing as well as the financing of educational programmes and care measures.

The company was founded in 1961. Back then, it was the smallest building society in Austria. Today, Raiffeisen Bausparkasse is an international company.

As the market leader in the main business areas, it services around 1.6 million customers in Austria and holds participations in Slovakia, the Czech Republic and Romania – with a total of almost 1.4 million customers.

In Austria, Raiffeisen Bausparkasse has co-financed the construction, purchase and modernisation of around 484,000 apartments and houses. That equals residential property for more than 1.2 million people.

Manfred Url Hans-Christian Vallant

The Managing Board of Raiffeisen Bausparkasse: Manfred Url and Hans-Christian Vallant.

Key figures (as at 31 December 2017)

Contract portfolio: 1,713,010 New contracts: 257,296

Saving contracts: 1,624,796 Savings contracts: 252,881

Loan contracts: 88,214 Loan contracts: 4,415

Loans: EUR 6,506.7 million Financing: EUR 1,105.5 million

Deposits: EUR 6,683.2 million Balance Sheet Total: EUR 7,763.0 million

Business development in 2017

Market leadership in key business areas – Facts, figures and dataRaiffeisen Bausparkasse ended the 2017 financial year on a successful note, despite difficult market conditions. The still challenging macroeconomic environment, persistent low interest rates and the resulting adjustments to the savings conditions required great effort in both the product and cost management.

Building societies remained one of the most popular forms of saving in 2017. Despite the low savings rate and a declining trend in savings deposits generally, Raiffeisen Bausparkasse was able to achieve a growth rate of 2.24 per cent in building savings deposits compared to the previous year, an increase of EUR 150 million. As a result, building savings deposits reached a level of EUR 6,683.2 million.

In new business, Raiffeisen Bausparkasse was able to increase its market share to 36.83 per cent with 257,296 new contracts. The company also secured for itself the highest value in terms of the total value of contracts concluded.

In the area of financing, Raiffeisen Bausparkasse rendered financial services worth EUR 1,105.5 million and thus increased the results of the previous year by 21.64 per cent. The total loans amount to at EUR 6,506.7 million.

Amongst Austria’s building societies, Raiffeisen Bausparkasse is also clearly in first place for the number of building society accounts under management: savings and loan contracts together make up the considerable sum of 1,713,010 building savings accounts. Despite the challenging market conditions, Raiffeisen Bausparkasse was also able to achieve an increase of the market share from 34.82 per cent in 2016 to 35.65 per cent, thus clearly confirming its market leadership.

Key figures (as at 31 December 2017)

New contracts Contract portfolio Deposits Loans

RBSK 257,296 1,624,796 EUR 6,683.2 million EUR 6,506.7 million

PSS 144,320 881,779 EUR 2,749.4 million EUR 2,191.5 million

RSTS 64,357 560,305 EUR 2,394.1 million EUR 1,664.4 million

RBL 171 176,266 EUR 110.6 million EUR 22.4 million

In total 466,144 3,243,146 EUR 11,937.3 million EUR 10,385.0 million

Participations of Raiffeisen Bausparkasse

Building societies continue to be very successful in CEE The foreign business of Raiffeisen Bausparkasse (RBSK) has been an integral part of the company’s strategy for more than 25 years. The subsidiaries in Slovakia, the Czech Republic and Romania serve a total of almost 1.4 million customers and manage around EUR 5.3 billion in building society deposits.

Slovakia: Prvá stavebná sporitelňa, a.s. (PSS) Founding year: 1992 First foreign subsidiary of Raiffeisen Bausparkasse and first building society in Central and Eastern Europe (CEE) Undisputed market leader in Slovakia Leading position in building society savings and construction financing

Czech Republic: Raiffeisen stavební spořitelna, a.s. (RSTS) Founding year: 1993 (as AR Bausparkasse AG) First building society in the Czech Republic 1998: Adoption of the current name Raiffeisen stavební spořitelna, a.s. Very good results in a competitive environment

Romania: Raiffeisen Banca pentru Locuinţe, S.A. (RBL) Founding year: 2004 First building society in Romania

Building societies, an important economic factor

A proven system brings benefits for people, the economy and the government

Building societies provide a win-win situation, as they provide benefits for all involved. The building society customers, government and economy all benefit from a proven system:

The building society customers enjoy interest and state building society premiums and have the right to low-interest, long-term loans in order to realise their housing dreams as well as the financing of educational programms and care measures.

The government benefits from the financial services of the building societies, secures significant income from taxes and fees allowing the government to take in significantly more than it spends for the building society premium.

Building society savings the most efficient means for the national economy to support residential construction as a majority of the funding used for the building society premium flows back into building construction.

The economy benefits from many new jobs that are secured in the construction and related industries, whereby small and medium-sized entities especially profit.

The building society cycle:A system that is proven over decades is maintained with relatively little state resources, which results in significant economic benefits for all parties involved.

Building society customers enjoy benefi ts when saving and fi nancing

Economyis boosted and benefi ts

Governmenttakes in more money than it

pays in premiums

Assets 31/12/2017 EUR

31/12/ 2016 EUR 000’s

1. Cash in hand, Balances at central banks 163,996,355.56 0

2.Public sector debt instruments eligible for refinancing at the central bank

122,357,713.53 94,351

3. Loans and advances to banks 909,351,888.37 1,319,0244. Mortgage loans 5,353,345,022.84 5,200,7555. Other loans 814,684,004.72 778,5006. Bonds, notes and other fixed-interest securities 182,666,514.34 175,2587. Shares and other variable-yield securities 73,161,111.15 73,1898. Equity holdings 1,753,783.37 1,7499. Interests in affiliated companies 92,984,485.77 92,984

10. Intangible fixed assets 5,298,022.44 4,29711. Tangible fixed assets 479,622.81 58412. Other assets 40,715,988.05 41,72413. Accruals and deferred items 340,439.50 46414. Active latent taxes 1,906,595.26 1,609

7,763,041,547.71 7,784,488

Liabilities

1. Liabilities to banks 908,770,792.43 1,008,0272. Liabilities to customers 6,449,300,324.56 6,330,4703. Other liabilities 35,820,435.91 27,5764. Accruals and deferred items 369,194.71 4295. Provisions 23,436,213.68 36,0096. Consolidated profit 5,104,256.42 16,537

7.Supplementary capital pursuant to part 2 title II chapter 4 of regulation (EU) no. 575/2013

0.00 30,000

8. Subscribed capital 35,000,000.00 35,0009. Capital reserves 8,091,830.00 8,092

10. Retained earnings 227,300,000.00 222,500

11.Liability reserve pursuant to section 57 (5) of the Austrian Banking Act

69,848,500.00 69,848

7,763,041,547.71 7,784,488

Items not on the balance sheet

1. Contingent liabilities from guarantees 653.27 12. Credit risks 644,758,458.91 770,4413. Deposits from Fiduciary business 500,000.00 500

4.Eligible own funds pursuant to part 2 of Regulation (EU) no 575/2013 324,991,372.93 316,516

5.Equity requirement pursuant to article 92 of Regulation (EU) no. 575/2013 (total amount of risk) 2,761,283,883.41 2,761,749

6. Foreign liabilities 22,278,402.26 20,747

Items not on the balance sheet

1. Foreign assets 150,308,211.76 120,770

Balance sheet as at 31 December 2017

2017 EUR

2016 EUR 000’s

1. Interest and interest-related income 179,636,331.61 192,4732. Interest and interest-related expenses -100,091,136.36 -100,710

I. NET INTEREST INCOME 79,545,195.25 91,7633. Income from securities and equity holdings 641,342.90 1,0894. Fee and commission income 29,442,861.04 28,3545. Fee and commission expenses -48,856,845.23 -54,6036. Other operating income 2,416,544.38 895

II. OPERATING INCOME 63,189,098.34 67,4987. General administrative expenses -46,485,789.63 -46,583

8. Valuation adjustments for assets in asset items 10 and 11-1,538,207.58 -1,090

9. Other operating expenses -31,348.79 -83

III. OPERATING EXPENSES -48,055,346.00 -47,756IV. OPERATING RESULT 15,133,752.34 19,742

10.Balance from expenses and income from the disposal and valuation of receivables and securities as well as allocations to provisions for credit risks -2,547,338.65 1,884

11.Balance from expenses and income from the disposal and valuation of securities valued as financial investments as well as of equity holdings and interests in affiliated companies -603,235.97 12,140

V. PROFIT ON ORDINARY ACTIVITIES 11,983,177.72 33,76612. Taxes on income and earnings -1,864,783.70 -3,35613. Other taxes, insofar as not included under item 12 -751,269.12 -335

VI. ANNUAL SURPLUS 9,367,124.90 30,07514. Movements in reserves -4,800,000.00 -14,000

VII. PROFIT FOR THE YEAR 4,567,124.90 16,07515. Retained earnings 537,131.52 462

VIII. BALANCE-SHEET PROFIT 5,104,256.42 16,537

Income statement for the 2017 financial year

Imprint: Media owner: Raiffeisen Bausparkasse Gesellschaft m. b. H., 1190 Vienna, publisher: internal, publishing location: Vienna, editorial staff: Raiffeisen Bank International AG, Group Communications, 1030 Vienna, photos © iStockphoto, as at: April 2018

Raiffeisen Bausparkasse Gesellschaft m. b. H.Mooslackengasse 12, 1190 Vienna p | +43 1 546 46-0 w | www.bausparen.at

Prvá stavebná sporitelňa, a.s.Bajkalská 30, P.O.Box 48, SK 829 48 Bratislava 25p | +421 2 58 23 11 11 w | www.pss.sk

Raiffeisen stavební spořitelna, a.s.Koněvova 2747/99, CZ 130 45 Praha 3p | +420 2 71 03 11 11 w | www.rsts.cz

Raiffeisen Banca pentru Locuinţe, S.A.246 D Calea Floreasca, 6th Floor, Area A, Sector 1, Bucharest, Postal Code 014476, Romania p | +40 372 13 31 10 w | www.rbl.ro

Adresses

This Annual Report has been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission, typesetting and printing errors cannot be ruled out. In the summing up of rounded amounts and percentages, rounding-off differences may occur. This Annual Report was prepared in German. The Annual Report in English is a translation of the original German report. The only authentic version is the German version.