C _ Group Management Report 1 Currency allocation of Allianz SE’s senior and subordinated bonds Allianz Group consolidated cash flows € mn As of 31 December Euro Non-euro Total Annual changes in cash and cash equivalents 2021 € mn Senior and subordinated bonds (debt and 2021 2020 Delta equity) 20,250 4,938 25,188 Net cash flow provided by operating 2020 activities 25,124 32,049 (6,925) Senior and subordinated bonds (debt and Net cash flow used in investing activities (19,783) (28,870) 9,086 equity) 19,896 4,393 24,289 Net cash flow provided by/used in financing activities (3,786) (1,390) (2,395) 1_Based on nominal value. Change in cash and cash equivalents1 1,771 1,031 741 1_Includes effects of exchange rate changes on cash and cash equivalents of € 216 mn and € (758) mn in 2021 and 2020, respectively. Short-term debt funding Available short-term funding sources are the Medium-Term Note Program and the Commercial Paper Program. Money market securities slightly increased in the use of commercial paper, compared Net cash flow provided by operating activities decreased in 2021 by to the previous year-end. Interest expenses on money market securities € 6.9 bn to € 25.1 bn. This figure comprises net income plus decreased, mainly due to lower funding costs on average in 2021. adjustments for non-cash charges, credits, and other items included in net earnings, as well as cash flows related to the net change in Money market securities of Allianz SE operating assets and liabilities. Net income after adding back non- cash charges and similar items increased by € 1.8 bn to € 12.8 bn in Interest Average 2021. Operating cash flows from net changes in operating assets and Carrying value expense interest rate As of 31 December € mn € mn % liabilities dropped to € 12.3 bn. This was mainly driven by net cash outflows from assets and liabilities held for trading (after net cash 2021 inflows in 2020), particularly from our Life/Health business operation Money market securities 1,198 (3) (0.3) in Germany. 2020 Net cash outflow used in investing activities decreased by Money market securities 1,170 5 0.5 € 9.1 bn to € 19.8 bn. The main driver was lower net cash outflows from available-for-sale investments, particularly in our Life/Health business operations in Germany and France and at Allianz SE. Moreover, we recorded lower net cash outflows from loans and advances to banks The Group maintained its A-1+/Prime-1 ratings for short-term and customers. This was partly compensated by the acquisitions of issuances. We can therefore continue funding our liquidity under the Westpac’s general insurance business, Aviva Italy and the business Euro Commercial Paper Program at an average rate for each tranche operations of Aviva Group Poland resulting in a total cash outflow (net below Euribor, and under the U.S. Dollar Commercial Paper Program of cash acquired) of € 3.2 bn. at an average rate for each tranche below U.S. Libor. Net cash outflow provided by/used in financing activities Further potential sources of short-term funding that allow the increased by € 2.4 bn in 2021 and amounted to € 3.8 bn. The increase Allianz Group to fine-tune its capital structure are letter of credit was largely driven by net cash outflows from our refinancing activities facilities and bank credit lines. (after net cash inflows in 2020) mainly due to the redemption of subordinated bonds in 2021. Higher net cash inflows from liabilities to banks and customers partly offset this effect. Cash and cash equivalents increased by € 1.8 bn, mainly stemming from our Life/Health business segment in the United States. For further information on the above, please refer to our Consolidated Statement of Cash Flows. 94 Annual Report 2021 − Allianz Group