C _ Group Management Report 1 Capital authorizations of Allianz SE Senior and subordinated bonds issued or guaranteed by Allianz SE Expiry date of Weighted- Capital authorization Nominal amount the authorization Interest average As of 31 December Nominal value Carrying value expenses interest rate2 Authorized Capital 2018/I1 € 334,960,000 8 May 2023 € mn € mn € mn % Authorized Capital 2018/II2 € 15,000,000 8 May 2023 2021 Conditional Capital Senior bonds 9,643 9,589 165 2.0 3 2010/2018 € 250,000,000 8 May 2023 Subordinated bonds (debt) 10,847 10,864 453 3.8 1_For issuance of shares against contribution in cash and/or in kind, with the authorization to exclude shareholders’ subscription rights. Total bonds (debt) 20,490 20,453 617 3.0 2_For issuance of shares to employees, with the exclusion of shareholders’ subscription rights. Subordinated bonds 3_To cover convertible bonds, bonds with warrants, convertible participation rights, participation rights, and 3 subordinated financial instruments, each with the authorization to exclude shareholders’ subscription rights. (equity) 4,698 4,699 69 3.0 Total bonds (equity) 4,698 4,699 69 3.0 2020 For further information on our share capital and regarding Senior bonds 8,088 8,036 158 1.8 authorizations to issue and repurchase shares, please refer to the Subordinated bonds chapter Takeover-Related Statements and Explanations (debt) 13,929 13,974 565 4.2 (part of the Group Management Report). Total bonds (debt) 22,017 22,010 723 3.3 Subordinated bonds Long-term debt funding (equity) 2,272 2,272 - 3.0 Total bonds (equity) 2,272 2,272 - 3.0 As of 31 December 2021, Allianz SE had senior and subordinated bonds with a variety of maturities outstanding, reflecting our focus on 1_For further information on Allianz SE debt (issued or guaranteed) as of 31 December 2021, please refer to note 18 to the Consolidated Financial Statements. long-term financing. As the cost and availability of external funding 2_Based on nominal value. may be negatively affected by general market conditions or by 3_Interest paid (not part of the Consolidated Income Statement). matters specific to the financial services industry or the Allianz Group, we seek to reduce refinancing risk by actively steering the maturity profile of our funding structure. The following table details the long-term debt issuances and redemptions/buy-backs of Allianz SE during 2021 and 2020: 1 Maturity structure of Allianz SE’s senior and subordinated bonds € mn Issuances and redemptions of Allianz SE’s senior and subordinated Contractual maturity date bonds As of 31 December Up to 1 year 1 – 5 years Over 5 years Total € mn Issuance net of 2021 Redemptions/ redemptions/ As of 31 December 1 1 2 3 Issuances buy-backs buy-backs Senior bonds 1,500 2,999 5,091 9,589 Subordinated bonds 2021 4 (debt) - - 10,864 10,864 Senior bonds 1,500 - 1,500 Total bonds (debt) 1,500 2,999 15,955 20,453 Subordinated bonds (debt) - 3,235 (3,235) Subordinated bonds 5 Subordinated bonds (equity) 2,303 - 2,303 (equity) - - 4,699 4,699 Total bonds (equity) - - 4,699 4,699 2020 2020 Senior bonds 1,250 1,250 - Senior bonds - 2,745 5,291 8,036 Subordinated bonds (debt) 1,000 - 1,000 Subordinated bonds Subordinated bonds (equity) 2,272 - 2,272 (debt) - - 13,974 13,974 1_Based on nominal value. Total bonds (debt) - 2,745 19,265 22,010 Subordinated bonds (equity) - - 2,272 2,272 Total bonds (equity) - - 2,272 2,272 Funding in non-euro currencies enables us to diversify our investor 1_Based on carrying value. base or to take advantage of favorable funding costs in those markets. 2_Senior bonds of € 0.7 bn and € 0.3 bn were issued in the fourth quarter of 2021. Funds raised in non-euro currencies are incorporated in our general 3_A senior bond of € 0.5 bn was issued in the fourth quarter of 2021. 4_Subordinated bonds of € 1.1 bn, USD 1.0 bn, € 0.8 bn and € 0.5 bn were redeemed in 2021. hedging strategy. As of 31 December 2021, approximately 19.6 % 5_Includes the issuance of a dual tranche RT1 bond (€ 1.25 bn and USD 1.25 bn) in the third quarter of 2021. (2020: 18.1 %) of the long-term debt was issued or guaranteed by Allianz SE in currencies other than the euro. Interest expenses on senior bonds increased, mainly due to higher funding costs on average in 2021. For subordinated bonds, the decrease of interest expenses was driven by lower funding costs on average in 2021. Annual Report 2021 − Allianz Group 93