PTA-AFR: Yearly financial report according to article 124 BörseG

There is no moving forward without looking back.

Group Annual Report 2023

Key financial data

EARNINGS
NET PROFIT	€41.1m
OPERATING RESULT	€103.9m
EPS	€2.12
NIM	3.8%
ASSET QUALITY
COST OF RISK	-0.3 %
NPE RATIO	2.0 %
NPE VOLUME	€138.0m
CAPITAL
CET1 RATIO	20.4%

Business development

• ACCELERATION PROGRAM ENABLED

DOUBLE-DIGIT GROWTH IN CONSUMER AND SME WHILE MAINTAINING COST DISCIPLINE

• OPERATING RESULT UP 41% YOY TO
  €103.9m REFLECTING CONTINUED POSITIVE MOMENTUM ON TOP -LINE
• DIVIDEND OF €24.6m (€1.26 DPS)

TO BE PROPOSED AT AGM 2024

• ESG STRATEGY & ACTION PLAN FOR 2023 COMPLETED, INITIATIVES ON TRACK FOR

2024

Outlook

NEW OUTLOOK 2024 AND MID-TERMGUIDANCE

DEFINED ON THE BACK OF ACCELERATION PROGRAM AND STRONG MOMENTUM

Key data

			EUR m
Selected items of the Profit or loss statement	2023	2022	(%)
Net banking income	295.2	248.9	18.6%
Net interest income	228.0	176.4	29.2%
Net fee and commission income	67.1	72.5	-7.4%
Net result on financial instruments	0.4	1.9	-78.6%
Other operating result	-13.1	-9.2	42.5%
Operating income	282.5	241.6	16.9%
General administrative expenses	-178.6	-168.0	6.3%
Operating result before impairments and provisions	103.9	73.6	41.1%
Other result	-44.7	-27.0	65.4%
Expected credit loss expenses on financial assets	-11.8	-15.4	-23.8%
Taxes on income	-6.3	-5.5	15.9%
Result after tax	41.1	25.7	59.9%
Performance ratios	2023	2022	(pts)
Net interest income/total average assets	3.8%	3.0%	0.8
Return on average tangible equity	5.5%	3.4%	2.1
Cost/income ratio	60.5%	67.5%	-7.0
Cost of risk ratio	-0.3%	-0.3%	0.0
Cost of risk ratio (net loans)	-0.3%	-0.5%	0.2
Earnings per share (in EUR)	2.12	1.32	79.6
Selected items of the Statement of financial position	2023	2022	(%)
Loans and advances to customers	3,489.2	3,292.7	6.0%
Deposits and borrowings from customers	5,032.6	4,959.6	1.5%
Equity	801.1	746.3	7.4%
Total assets	6,151.5	5,996.4	2.6%
Risk-weighted assets 1)	3,653.2	3,481.0	4.9%
Balance sheet ratios	2023	2022	(pts)
Loan to deposit ratio	69.3%	66.4%	2.9
NPE ratio	2.0%	2.4%	-0.4
NPE Ratio (on balance loans)	2.8%	3.3%	-0.5
NPE coverage ratio	80.9%	75.4%	5.5
Liquidity coverage ratio	313.4%	307.4%	28.4
Common equity tier 1 ratio 1)	20.4%	20.0%	0.4
Total capital ratio 1)	20.4%	20.0%	0.4

1. As of 1 January 2023, there is no difference between the transitional and the fully-loaded regulatory capital base due to the expiry of the IFRS 9 and Article 468 CRR (EU 2020/873) transitional capital rules. Comparative figures on a fully-loaded basis.

Group Annual Report 2023 3

Group Annual Report 2023

Letter from the CEO	5
Report of the Supervisory Board	7
Group Management Report	11
1.	Macroeconomic environment	11
2.	Acceleration Program	12
3.	Business updates	14
4.	Financial development of the Group	17
5.	Capital and liquidity	22
6.	Segment information	24
7.	Sustainability	33
8.	Research & Development	34
9.	Outlook & Mid-Term Guidance, dividend policy and risk factors	35
10.	Corporate Governance	38
11.	Capital-,share-, voting and control rights	38
12.	Internal Control System for accounting procedures	40
13.	Consolidated non-financial report	41
14.	Other disclosures in the notes	41
Consolidated Financial Statements	42
I. Consolidated statement of comprehensive income	44
II. Consolidated statement of financial position	46
III. Consolidated statement of changes in equity	47
IV. Consolidated statement of cash flows	48
V. Notes to the consolidated financial statements	49
Accounting and measurement policies	49
Notes to the profit or loss statement	76
Notes to the consolidated statement of financial position	86
Segment Reporting	109
Risk Report	117
Supplementary information required by IFRS	152
Supplementary information required by Austrian Law	167
Statement of all Legal Representatives	173
Auditor's Report	174

Disclaimer:

Certain statements contained in this report may be statements of future expectations and other forward-looking statements that are based on manage- ment's current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

Actual results may differ materially from the results predicted and information on past performances do not permit reliable conclusions to be drawn as to the future performances. Forward-looking statements based on the management's current view and assumptions might involve risks and uncertainties that could cause a material deviation from the statement contained herein. Neither Addiko Bank AG nor any of its affiliates or representatives shall be liable for whatever reason for any kind of damage, loss, cost or expenses of any kind arising directly and/or indirectly out of or on connection from any use of this report or its contents or otherwise arising in connection with this document. This report does not constitute a recommendation or an invitation or offer to invest or any investment or other advice or any solicitation to participate in any business and no one shall rely on these materials regarding any contractual or other commitment, investment, etc.

The tables in this report may contain rounding differences. Any data is presented on the Addiko Group level (referred to as Addiko Bank or the Group throughout the document) unless stated otherwise.

The English version of the report is a translation. Only the German is the authentic language version.

Group Annual Report 2023 4

Letter from the CEO

Letter from the CEO

I am pleased to reflect on the remarkable journey we have undertaken at Addiko Group during 2023. In addition to achieving significant milestones, we also solidified our position as a specialist bank known for its fast loans, improved digital services, and strong commitment to customer satisfaction.

Addiko Group posted a net profit of EUR 41.1 million for the year 2023, up 60% from 2022. Our operating result also improved significantly with a 41% increase to EUR 103.9 million, an achievement that was supported by double-digityear-on-year growth in our focus areas Consumers and SME.

Our performance on cost management in times of elevated inflation is also evident from an improved cost/income ratio of 60% (YE22: 67%). Moreover, we managed to decrease our NPEs to a historic low of EUR 138 million, representing an NPE ratio of 2.0%. These developments are a continuation of the solid results, allowing us to propose a dividend for the year 2023 of EUR 24.6 million or EUR 1.26 per share to our shareholders at the AGM on 26 April 2024.

As we respond to changing customer needs, our group-wide Acceleration Program is focused on growing our business in our key areas Consumers and SME, improving our operations and boosting our digital capabilities. The program is based on three pillars:

Business Growth in Focus Areas:In 2023, Addiko significantly improved its digital platform to better serve its customers. The next step is to leverage, optimise and extract the maximum out of the existing platform. We will continue to launch E2E digital capabilities to attract digital customers and further expand through our partnership ecosystem.

Operational Excellence & Digital:With the 'Operational Excellence' stream established in 2023, Addiko has focused on creating the fastest processes through back-office excellence, automation and a customer-first approach. We have made substantial improvements in our business intelligence reporting systems, which help us to enhance customer understanding and drive innovation in E2E processes. In Slovenia for instance, the time of obtaining a business account number was significantly reduced from 2 days to just 10 minutes. For the onboarding process, customers now just need 4 documents as opposed to 14 in the prior year. Looking forward, it's crucial to highlight that the Operational Excellence stream is an ongoing process. We are dedicated to implementing further improvements in 2024, ensuring sustained optimisation and continuous enhancement of our core operational processes.

Best-in-ClassRisk Management:We believe that Addiko can only reach its goal of becoming the best specialist bank for Consumers and SMEs in CSEE by being superior in risk management. In the current economic situation, the importance of data management and analytics in the risk management area is more significant than ever. We have recorded a considerable increase in the rate of automatic decisions in the Consumer segment. We have also successfully launched a group-wide comprehensive risk reporting platform, which further improved our capabilities to control and manage risks on a group-wide basis. Moreover, the ongoing NPE reduction initiatives allowed us to further decrease the non- performing exposure to an all-time low in the year 2023.

On the back of our solid results and the momentum of our Acceleration Program, we have updated our Mid-Term Guid- ance. The new guidance maintains consistency with previously disclosed goals, yet exhibits a higher level of transparency and granularity. Key enhancements include the harmonisation of targets for the Outlook 2024 and the Mid-Term Guidance, along with the provision of additional yearly targets and information leading up to the mid-term period.

In a strategic move to further strengthen our position in the CESEE region, we have decided to enter the Romanian market in 2024. We will meticulously balance investments and risks and establish a reasonable timeframe to generate value-adding returns. This move aligns with the company's overall vision of becoming the leading specialist bank for Consumers and SMEs in the region. By leveraging our well-established digital platform, we aim to offer innovative financial solutions and unparalleled customer service in the Romanian market via our digital channels, contributing to the continued success of our growth initiatives.

ESG was another focal point in 2023. We have launched 15 initiatives aimed at achieving our sustainable development goals. Central to our focus is the reduction of our carbon footprint and the promotion of social equality, both within and beyond our organisation. Looking ahead, we are determined to further intensify our efforts in this domain by allocating more resources to contribute expediently to sustainable development.

Group Annual Report 2023 5

Letter from the CEO

I am pleased with these outcomes. They reflect the significant progress we have achieved collectively as a team and the rapid steps we've made as a business in our journey. My sincere gratitude goes to all our dedicated employees for their commitment and great work in serving our customers every day. I am convinced that we will continue to create value for all our stakeholders and become the leading specialist bank for Consumer & SME customers in our region.

Kind regards,

Herbert Juranek (CEO)

Group Annual Report 2023 6

Report of the Supervisory Board

Report of the Supervisory Board

Dear Shareholders,

The global economic slowdown, intensified by geopolitical tensions, results in an environment marked by lower visibility and somewhat less economic activity. For banks, it becomes even more crucial to adapt and maintain their strategic focus. Despite the challenging environment, Addiko Group continues to prioritize growth in its focus areas of Consumers and small and medium-sized enterprises (SMEs), combined with operational excellence and the further enhancement of digital capabilities. This dedicated approach involves monitoring economic indicators, adapting product offerings to meet changing customer needs and ensuring resilience in the face of uncertainty.

Addiko Group remains confident for the CSEE region as it shows impressive resilience compared to the rest of Europe. Amid the complexity ahead in 2024, the company continues to be focused on its commitment of becoming the leading specialist bank for Consumer and SME customers in Central and South-Eastern Europe by offering the best service combined with highly attractive product offerings.

The Group posted a net profit of EUR 41.1 million for the year 2023, up 60% from 2022, allowing Addiko to propose a dividend for the year 2023 of EUR 24.6 million or EUR 1.26 per share to its shareholders at the AGM on 26 April 2024.

Addiko's Acceleration Program, launched at the beginning of the year 2023, is designed to address evolving customer needs, with a primary focus on expanding Addiko Group's presence among Consumers and SMEs. The program aims to enhance operational efficiency and elevate digital capabilities. It is structured around three key pillars: Business Growth in Focus Areas, Operational Excellence & Digital and Best-in-Class Risk Management.

2023 was also the year of dynamic marketing campaigns through which Addiko prioritized customer acquisition and solidifying its image as the preferred fast loan provider. Leveraging the popular 3D animated character, Oskar, across six CSEE markets, Addiko executed over 80 campaigns through diverse media channels. The "no time" image campaign reinforced the bank's identity as a swift and approachable financial institution. In the latter half, Addiko focused on customer segmentation research and digital team expansion. The emphasis on high-quality creative paid off, with Brand Tracker measurements showing substantial growth in spontaneous awareness and consideration for fast cash loans.

Building on the solid result for the financial year 2023 and the momentum of the Acceleration Program, Addiko has updated its Mid-Term Guidance. The company maintains consistency with previously disclosed goals yet exhibits a higher level of transparency and granularity.

In a strategic move to further strengthen its market position in the CESEE region, Addiko has decided to enter the Romanian market in 2024. In this context, Addiko will meticulously balance investments and risks and establish a reasonable timeframe to generate value-adding returns. This move aligns with the company's overall vision of becoming the leading specialist bank for Consumers and SMEs in the region.

Another important topic that took centre stage in 2023 is ESG which will continue to grow in 2024 and onwards. Addiko launched 15 initiatives aimed at achieving sustainable development goals. Central to the focus is the reduction of Addiko's carbon footprint and the promotion of social equality, both within and beyond the organization. Looking ahead, the Bank is determined to further intensify its efforts in this domain, allocating more resources to contribute meaningfully to sustainable development.

Group Annual Report 2023 7

Report of the Supervisory Board

Activities of the Supervisory Board

During the reporting year, the Supervisory Board performed all of the duties incumbent upon it in a highly conscientious manner and in accordance with the law, the Company's statutes and its own rules of procedure.

It held eight meetings in total in the financial year 2023, adopted six circular decisions and assisted the Management Board in its advisory capacity and by continually monitoring the governance of the company. At the meetings of the Supervisory Board and its Committees, the Management Board reported in depth on Addiko Group's financial situation, risks and their mitigation and business performance. The Management Board discussed in detail strategies and related measures with the Supervisory Board. Legal transactions requiring approval were submitted to the Supervisory Board, and the Supervisory Board was given sufficient opportunity to thoroughly examine any reports and resolutions proposed by the Management Board. In addition, the Supervisory Board conducted ten Working Group sessions in which specific strategic measures were discussed in detail with the Management Board.

In this context, the Supervisory Board undertook the measures necessary to assure that the governance of the Addiko Group's affairs was effective, lawful, compliant, and appropriate.

The Supervisory Board had formed the following five standing Committees:

• the Audit and Compliance Committee/Audit, Compliance & AML Committee (which held six meetings and adopted one circular decision in 2023),
• the Credit & Risk Committee (which held five meetings and adopted two circular decisions in 2023),
• the Digitalization & IT Committee (which held four meetings in 2023),
• the Nomination & Remuneration Committee (which held four meetings and adopted three circular decisions in 2023) and
• the Committee for Management Board Matters (which held three meetings in 2023).

The Chairman of the Supervisory Board, as well as the Chairmen of the Committees of Addiko Bank AG's Supervisory Board were in regular contact with the Management Board.

Within meetings taking place at least once every quarter in person and via virtual meetings, the Supervisory Board regularly received information on the following topics: business performance in the previous quarter, financial perfor- mance, risk development and significant matters, as well as major legal disputes. Between the quarterly reports, the Management Board also informed the Supervisory Board of current economic developments. In addition, the Supervisory Board received regular reports of key executives, especially of the Compliance Officer and Internal Audit Officer.

Changes to the Management Board and the Supervisory Board

There were no changes within the Management Board of Addiko Bank AG but the terms of the mandates of Mr. Herbert Juranek, CEO, Mr. Edgar Flaggl, CFO and Mr. Tadej Krasovec, CRO, were prolonged until 31 December 2025 whereas the mandate for Mr. Ganesh Krishnamoorthi, CMO/CIT was prolonged until 31 July 2026. This was done to ensure continuity in the leadership of Addiko especially after the acceleration process successfully started in 2022 and continuous showing positive results in 2023. In the view of the Supervisory Board this was and is key to the recent positive developments in all aspects of Addiko's business, risk and financial management.

In 2023, Mr. Kurt Pribil, the Chair of the Supervisory Board, was re-elected by the General Meeting on 21 April 2023. Accordingly, the Supervisory Board consists of seven members, thereof two delegated by the Workers' Council.

Consolidated Corporate Governance Report, Austrian Code of Corporate Governance

The Consolidated Corporate Governance Report of Addiko Bank AG was audited by Deloitte Audit Wirtschaftsprüfungs GmbH pursuant to Section 96 (2) Austrian Stock Corporation Act. Deloitte Audit Wirtschaftsprüfungs GmbH confirmed that Addiko complied with the rules of the ACGC in the financial year 2023 - insofar as these were included in the Addiko declaration of conformity.

Group Annual Report 2023 8

Report of the Supervisory Board

The Supervisory Board determined that Addiko Bank AG has to comply with the Austrian Code of Corporate Governance as amended in January 2023. The Supervisory Board strives to consistently comply with the provisions of the Code that relate to the Supervisory Board. In this context, the Supervisory Board complies with all Rules relating to the cooperation of the Supervisory Board and the Management Board, and to the Supervisory Board itself, except for the deviations presented in the Corporate Governance Report.

Separate and Consolidated Financial Statements 2023

KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft audited the separate Financial Statements of Addiko Bank AG and the Consolidated Financial Statements of the Addiko Group as of 31 December 2023, issuing unqualified audit opinions. Pursuant to statutory provisions, the Management Report and the Group Management Report have been audited as to whether they are consistent with the separate and Consolidated Financial Statements and have been prepared in accordance with the applicable legal requirements. The Sustainability Report was read and considered not to be materially inconsistent with the Consolidated Financial Statements nor to be materially misstated.

The separate Financial Statements of Addiko Bank AG were prepared in accordance with the regulations of the Austrian Banking Act (BWG) and - where applicable - with the provisions of the Austrian Commercial Code (UGB). The Consolidated Financial Statements of the Addiko Group were prepared in accordance with IFRS as adopted by the EU and in compliance with the requirements under Section 245a Austrian Commercial Code (UGB) and Article 59a Austrian Banking Act (BWG). The separate Financial Statements, the Consolidated Financial Statements, the Consolidated Corporate Governance Report, the Consolidated Non-Financial Report ("Sustainability Report 2023") and the Management Board's proposal for the allocation of the annual profit 2023 - all prepared by the Management Board - were discussed in detail with KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft at the meeting of the Audit and Compliance Committee held on 4 March 2024.

At the meeting, the aforementioned Committee, inter alia, resolved to propose approval of the separate Financial Statements of Addiko Bank AG by the Supervisory Board.

The Chairwoman of the Audit, Compliance and AML Committee reported on the Committee's recommendations at the meeting of the Supervisory Board on 5 March 2024. At this meeting, the separate and Consolidated Financial Statements were examined thoroughly in the presence of the auditor and verified by the Supervisory Board to ensure, in particular, that they were lawful, compliant and appropriate.

The Financial Statements of Addiko Bank AG as well as that of the Addiko Group, the Consolidated Corporate Governance Report and the Consolidated Non-Financial Report ("Sustainability Report 2023") were reviewed and found, in the opinion of the Supervisory Board, to be consistent with legal requirements.

The Supervisory Board has reviewed the proposal by the Management Board regarding the allocation of profits and approved this as follows.

Addiko Bank AG posts in its separate Financial Statements according to UGB/BWG at 31 December 2023 net accumulated profits available for distribution in the amount of EUR 38.94 million. In the next Annual General Meeting on 26 April 2024 the Management Board intends proposing a dividend payment amount of EUR 1.26 per share, which equals an amount of up to EUR 24.57 million overall. The dividend proposal is based on the dividend policy applicable for the year 2023 of distributing 60 % of the group result. The remaining amount of EUR 14.37 million shall be carried forward to the balance sheet of the following year.

The result of the examination is that the Supervisory Board had no objections to the separate Financial Statements, the Consolidated Financial Statements and the audit performed by the auditor.

The Supervisory Board, therefore, concurred with the results of the audit on 5 March 2024 and approved the separate Financial Statements of Addiko Bank AG. The separate Financial Statements have, therefore, been adopted. The consolidated Financial Statements were noted by the Supervisory Board. In addition, the Supervisory Board reviewed the separate Consolidated Non-Financial Report ("Sustainability report 2023").

Group Annual Report 2023 9

Report of the Supervisory Board

The Supervisory Board would like to express thanks to the members of the Management Board, the leadership team and to the entire staff for their outstanding commitment and achievements in 2023.

On behalf of the Supervisory Board

Dr. Kurt Pribil

Chairman of the Supervisory Board

Vienna, 5 March 2024

Group Annual Report 2023 10