LEG Immobilien SE

Investor Presentation • Mar 10, 2022

LEG Immobilien SE FY-2021 Results

10 March 2022

FY-2021 Results

Agenda

• 1 Highlights FY-2021
• 2 Portfolio & Operating Performance
• M Financial Performance
• 4 Outlook
• 5 Appendix

Disclaimer

While LEG ImmobilienSE ("The Company") has taken all reasonation the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable in nature and is intended to provide an introduction to, and an overview of the Company's business. Any opinions expressed in this presentation and neither the Company nor any other person is under any obligation to update of keep current the in this presentation. Mhere this presentation quotes any information or statistics from any external sources, you should not interpret that the Company has adopted or statistics as being accurate.

This presentation may contain forward-looking statements that and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. Forward-ooking statements about future events, future financial performance, plans, strategies, expectations prospective environment, regulation, and supply and demand. The Company has based these forward looking statements on its views and assumptions with respect to financial performance. Actual financial performance could differ materially from that projected in the forward-looking statement uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these readers should not put undue reliance on any forward-ooking statements. The information contained in this presentation is subject to change withe Company does not undertake any duty to update the information and foward-looking statements, and the estimates and associated with them, except to the extent required by applicable laws and regulations.

This presentation does not constitute an offer or in the Company and heither this presentation or anything in it stall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

1 | Highlights FY-2021

FY-2021 – Financial Summary

			+ /-
Operating results		FY-2021	FY-2020	%/bps
Net cold rent	€m	683.9	627.3	+9.0%
Recurring net rental income	€m	540.0	493.0	+9.5%
EBITDA adjusted	€m	512.2	466.9	+9.7%
FFO I	€m	423.1	383.2	+10.4%
FFO I per share	€	5.84	5.44	+7.4%
FFO II	€m	419.9	381.3	+10.1%
EBITDA margin (adj.)	0/0	74.9	74.4	+50bps
FFO I margin	ിം	61.9	61.1	+80bps
Dividend (proposal)	€	4.07	3.78	+7.7%
				+ /-
Portfolio		31.12.2021	31.12.2020	%/bps
Residential units	number	166,189	144,530	+15.0%
In-place rent (I-f-I)	€/m²	6.13	5.94	+3.2%
Capex (adj.)1	€/m²	31.21	30.12	+3.6%
Maintenance (adj.)1	€/m²	11.29	10.88	+3.7%
EPRA vacancv rate (I-f-I)	9/8	2.3	2.7	-40bps

Balance sheet				T/ -
		31.12.2021	31.12.2020	%/bps
Investment properties	€m	19,067.7	14,582.7	+30.8%
Cash and cash equivalents	Em	675.6	335.4	+101.4%
Equity	€m	8,953.0	7,389.9	+21.2%
Total financing liabilities	€m	8,885.1	5,869.0	+51.4%
Current financing liabilities2	€m	1,518.1	491.3	+209.0%
Net debt	€m	8,182.1	5,502.8	+48.7%
LTV	0/0	42.8	37.6	+520bps
Equity ratio	0/0	43.6	48.4	-480bps
EPRA NTA, diluted	€m	11,149.1	9,247.6	+20.6%
EPRA NTA per share, diluted	€	146.10	122.43	+19.3%
Employees				+ / -
		31.12.2021	31.12.2020	%/bps
Employees	number	1,770	1,599	+10.7%

1 Excl. new construction activities on own work capitalised and margin of WSPlus; pls see Appendix

Full steam ahead

FFO | with €423m at record leve

• FFO I +10.4% to €423.1m
• = Adj. EBITDA-Margin 74.9% (+50bps)
• = ITV 42.8%
  • · Debt @ 7.5y for 1.16%1
• = NTA ps €146.10 (+19.3% vs. FY 2020)

• Net cold rent +9.0%
• = I-f-I rental growth +3.2%
• I-f-I vacancy 2.3% (-40bps)
• Smooth integration of acquired units

• · LEG offers flats to Ukrainian Will refugees and LEG-Foundation provides €500,000 to equip flats
• Amendment of management remuneration:
  • 1) cancellation of transaction bonus, 2) shift to FFO I per share, 3) 25% of LTI to be reinvested in shares (add. to SOG2 of one gross base salary)
• = LEG Study with O& Wuppertal to underline superiority of energetic refurbishment over new development approach from CO2 perspective

~ 22,000 units added in 2021

Further growth via BCP or via 7,000 units ambition

Attractive portfolio in an attractive market 2021 revaluation gains of 12.8%3, 15% incl. capex

Dividend per share of €4.07

Proposal to AGM 2022

More growth to come Guidance 2022: FFO I €475m - €490m4

Alternation of charge connection of the Childer of Childer of Childer of 23 isquertes 222 and ever 222 4 Not the spacitions of discussions of discussions of discussions of de

FY-2021

Highlights

All drivers show substantial improvement KPI cockpit

Units outside NRW

FFO I share of services1

With strong operational performance

L-f-l vacancy

2021	2.3%
2020	2.7%	-40bps
2019		29%

EBITDA-Margin (adj.)

	74.9%		2021
	74.4%		2020
+50bps		72.8%	2019

FFO I per share (€)

attractive returns

Leading to

Dividend per share (€)2

7

Update on our major acquisitions

Integration well on track

Smooth integration of Adler portfolio (15,400 units)

• New subsidiary North in Bremen set up to better manage our Northern German portfolio
• LEG processes and IT rolled out
• On-boarding of new colleagues via intensive trainings, workshops, shadowing program with c. 200 LEG colleagues
• Roadmap established to bring down vacancy: LWSPlus and LEG craftsmen services TSP to support renovation process: as of today more than 400 units already under renovation
• Foundation "Dein Zuhause hilft" already active in the biggest location Wilhelmshaven (c. 6,800 units) with own staff

Growth optionality via BCP option - status quo

• Perfect fit securing attractive portfolio with 12,100 units in existing LEG target markets and offering new entry opportunities (Leipzig)
• 34.4% acquired so far from minority shareholders and Adler for c. €370m (-3% to NAV1)
• Financial participation within LEG FY21 accounts (no FFO I effect)

• Irrevocable tender agreement with Adler on 63.0% of BCP secured via a call option, expires 30 September 2022, strike price €157 per share (total invest €765m)

• LEG's efficient operating platform allows for smooth integration

• Timing of execution of the call option depends on capital market environment and due diligence
• Exercise of BCP option would allow LEG to exceed 7,000 units growth ambition for 2022

1 Q3 2021 reported

LEC

Highlights

95% of acquisitions outside NRW make LEG a German player

Focus on affordable housing – in our target markets – at attractive terms

Financial summary of acquisitions

• Portfolio increase by c. 21,900 units in 2021, i.e. more than three year's of our annual growth ambition
• 95% outside NRW, balanced split across markets
• Purchase price c. €2.15 bn (w/o BCP stake, BCP-option, taxes and other costs)
• Net cold rent multiple of c. 22.5x based on in-place rent compares to LEG year-end portfolio multiple of 23.9x
• Annualised contribution to FFO I of c. € 50m

Background & Rationale

• Leveraging of platform along established hubs
• 3 bigger deals (DeuWo 2,200; Kiel: 2,300; Adler: 15,400) represent 90% of the acquisitions
• Focus exclusively on affordable housing
• · Financial upside potential from optimised property management

2 | Portfolio & Operating Performance

Portfolio & Operating Performance

Portfolio transactions

Net additions of 21.7k units lead to portfolio growth of 15% in 2021

Number of units based on date of transfer of ownership12

f Residential units. 2 Note: The tansaction announcement and the transfer of ownership are usually several months apart. The number of units my therefore differ from other disclosirs, depending on the datable the numbers include effects such as conversion of commercial properties. 3 BW = Baden-Wurttemberg, HB = Bremen, LS = Lower Saxony, NRW = North Rhine-Westphate, SH = Schleswig-Holstein,

LEC

Acquisitions (Locations/State3)

Q1 2021

■ NRW - Oldenburg (LS)

Q2 2021

▪ NRW − Oldenburg (LS) − Hanover (LS) − Brunswick (LS) - Kaiserslautern, Koblenz (RP)

Q3 2021

· NRW - Hanover (LS) - Osnabrück (LS) - Brunswick (LS) - Bremen

Q4 2021

■ NRW – DeuWo-Portfolio (RP/BW) – Bremen – Hanover (LS) - Kiel (SH) - Adler-Portfolio (LS, SH)

Q1 2022

· NRW -Hanover (LS) - Brunswick (LS) - Kiel (SH) -Flensburg (SH) – Rhine-Neckar (RP/BW)

Q2 2022

" Brunswick (LS)

-

Portfolio & Operating Performance

Target of 3.0% l-f-l rental growth exceeded

Some catch-up effects from voluntary rent increase waiver due to Covid-19 in FY 2020

€/m²/month High-growth 7.52 FY-2021 +3.9% FY-2020 7.24 Stable 6.25 FY-202 +4.3% FY-2020 6.00 Higher-yielding 5.93 FY-2021 +3.3% 5.74 FY-2020

• Strong I-f-I rental growth driven by all of our three market segments; +3.9% for free financed portfolio
• Rent restricted units +0.5%: no cost rent adjustments in 2021
• Some catch-up effects from temporary suspension of rent increases related to Covid-19 in 2020

l-f-l free financed rent development

• Portfolio & Operating Performance

Positive trends across all KPIs and market clusters

In-place rent, l-f-l

Strong rent increase momentum while vacancy drops to low levels

%

Markets

96

	Total portfolio		High-growth		Stable		Higher-yielding
	FY-2021	▲ (YOY)	FY-2021	▲ (YOY)	FY-2021	▲ (YOY)	FY-2021	▲ (YOY)
# of units	166.189	+15.0%	49.227	+17.4%	66.420	+9.7%	50.542	+20.1%
GAV residential assets (€m)	17,978	+29.8%	7.825	+34.4%	6.618	+25.7%	3.535	+28.1%
In-place rent (m²), l-f-l	€6.13	+3.2%	€6.92	+3.2%	€5,88	+3.4%	35.64	+2.8%
EPRA vacancy, I-f-I	2.3%	-40 bps	1.5%	—20 bps	2.2%	-40 bps	3.5%	—50 bps

Portfolio & Operating Performance

Value-added services

Expanding services by gardening and cleaning work

LEG

-

-

-

3 | Financial Performance

Financial Performance

Margins at strong levels in FY-2021

Benefiting from growth as well as value-added services

Net cold rent €m 683.9 627.3 - +9.0% FY-2020 FY-202

Recurring net rental and lease income

· Margin improvement driven by scale effects. Difference to net rental and lease income relates to adjustment for D&A and special project costs

Adj. EBITDA

■ 50 bps improvement in line with guidance for adj. EBITDA margin of ~75%

FFO I

▪ Slightly higher increase vs. adj. EBITDA driven by disproportional increase in interest, taxes and minorities

FFO I ps

• = FY-2020 €5.44
• · FY-2021 €5.84 (+7.4% yoy)

Financial Performance

FFO Bridge FY-2021

Strong contribution from acquisitions and rent growth

LEG

Portfolio valuation FY-2021 – Breakdown revaluation gains

Valuation uplift driven by letting performance and yield compression

• Portfolio valuation +12.8%, including capex +15.0%
• Significant valuation uplift in all our markets further potential (in line with previous years) for H1-2022 expected
• Adjustment of discount rate from 4.5% end of FY-2020 to 3.9% (cap rate from 5.7% to 5.3%)

1 Property valuation with cut-off date as of 30 September 2021 and revaluation date as of 31 December 2021

LEC

Portfolio valuation FY-2021

Market segment	Residential Units	GAV Residential Assets (€m)	GAV/ m² (€)	Gross yield	In-Place Rent Multiple	GAV Commercial/ Other (€m)	Total GAV (€m)
High-Growth Markets	49,227	7,825	2,410	3.4%	29.8x	રાજક	8,158
Stable Markets	66.420	6.618	1,562	4.4%	22.6x	230	6,848
Higher-Yielding Markets	50,542	3,535	1,156	5.6%	18.0x	115	3,650
Total Portfolio	166,189	17,978	1,706	4.2%	23.9x	677	18,6561

1 GAV of IAS 40 portfolio (including leasehold, land value and assets under construction) was €19,068m

Well balanced financial profile Lower (interest) for longer (maturity)

Weighted

1.9%

1.5%

1.3%

0.9%

1.2%

1.0%

1.0%

1.5%

0.8%

1.0%

0.8%

1.6%

(excl. subsidised loans)

LEG

Average debt maturity

years
FY-2021 (adj)
FY-2020

Average interest costs

Loan-to-value

FY-2020

0/0
	FY-2021	42.8
	FY-2020	37.6

Highlights

7.5

7.4

1.33

• · Refinancing of €1.4bn bridge loan in January with impact on financial profile. Maturity profile as well as adjusted numbers reflect the refinancing of the bridge loan
• Bridge refinancing via issuance of bond with three tranches with a total volume of €1.5bn in January
• Issuance of three bonds with volume of €1.6bn in FY 2021 including one sustainable bond
• Average debt maturity at 7.5 years (+0.1y)
• Average interest costs down by 17 bps vs. FY-2020
• · No significant maturities until 2024
• Despite significant opportunistic portfolio expansion LTV remained below LEG's max. level of 43%. Including short term deposits the LTV stood at 42.4%
• · Net debt/EBITDAincreased from 10.3x to 12.6x1. No EBITDA contribution yet from the Adler transaction and most of the other acquisitions in 2021

Financial Performance

Leverage remains within risk appetite after realising three years of growth ambition in 2021

1 34.4% stake of BCP reflected in nominator as cash outflow and in denominator as asset / unrealized gains YTD not reflected

2 Typically not reflected within LEG LTV calculations

4 | Outlook

LEG Study: Energetic refurbishment superior over new construction approach under CO2 lifecycle perspective

Sneak

Joint study between renown Wuppertal Institute and LEG Key findings:

• Lifecycle perspective favors refurbishment over new construction
• Total CO2 footprint for a refurbished building >50% smaller than for a new building
• Break-even in total energy consumption perspective only after >40 years, if heat energy will remain on gas forever
• After shift to heat pump or district heating, refurbishment will remain the superior strategy
• Exit from gas likely to be accelerated after Russian/ Ukrainian war

Total energy consumption in Giga Joule

New construction

= Refurbishment - Gas/ Electricity

• Refurbishment - District heating / Electricity

-- Refurbishment - Shift from gas to heat pump

Breakeven only after >40 years if

Refurbishment remains

superior after exchange of gas

gas remains source for heat energy

1 based on buildings with construction year 1959–1968 and 3 floors. On average 14 units per building with a total of 8235

• Outlook

2022 guidance Guidance unchanged – options for external growth

		2022
FFO I		€475m - 490m
l-f-l rent growth		c. 3.0%
EBITDA margin		C. 75%
Investments	c. 46 - 48€/sqm1
LTV	max. 43%
Dividend		70% of FFO
Acquisition ambition	Not reflected in guidance: c. 7,000 units
Disposals		Not reflected in guidance: Up to 5,000 units
Environment	2022-2025 2022	Reduction of CO2 emissions by 10% based on CO2e kg/sqm 4,000 tons CO2 reduction from modernisation projects
Social	2022-2025 2022	Improve Customer Satisfaction Index (CSI) to 70% Maintain high employee satisfaction level (66% Trust Index)
Governance	2022	Maintain Sustainalytics rating within the negligible risk range (<10)

1 Includes €2.75/sqm for holistic refurbishment projects in Wolfsburg and Göttingen

5 | Appendix

-- Appendix

2021 guidance Delivered on ambitious goals

C C 100
---------------

		2021 guidance	2021 reported
FFO I		Upper end of €410m - 420m	€423.1m	2
l-f-l rent growth		~3.0%	3.2%	1
adj. EBITDA margin		~75%	74.9%	2
Investments	~40 - 42€/m² ~42€/m²		A
LTV	42.8% max. 43%		A
Dividend	70% of FFO 4.07 € - 70%			>
Acquisition ambition		~7,000 units	~22,000 units	>
Environment	2021 - 2024 2021	Reduction of CO2 emissions by 10% in 4 years' Energetic refurbishment of 3% of units1	On track - update with Q1 5.5%	>
Social	2021 - 2024 2021 2021 – 2025	Maintain high employee satisfaction level (66% Trust Index) Reduction of iteration calls from tenants by 15% Best in class in customer recognition by 2025 with a Customer Satisfaction Index of >70%	Next survey in 2022 15.5% On track	2
Governance	2021	Maintain Sustainalytics rating at score of 10.4	7.8

1 Units as at 12/19

Appendix

ಲ

Further building on our track record

LEG

8th dividend increase in a row

k

Dividend per share / Portfolio

Attractive payout policy

• · 8th dividend increase in a row
• · 70% of 2021 FFO I in line with payout policy
• Dividend yield of 3.3%1
• Total payout of c. €300m
• Offering of scrip dividend planned
• Well balanced capital management to finance growth: Since 2013 total dividends paid out to shareholders of c. €1.3bn vs. capital inflows from the issue of new shares, conversion of one convertible bond and scrip dividends of c. €1.3bn

Appendix

Inflation - Portfolio & financing structure as well as a small development exposure limit risks

LEG

Impact on rents

• · Rent restricted units are basically hedged (22% of portfolio)
  • · Rents linked to Consumer Price Index (CPI)
  • However, there is a time lag as in-place-rents can only be adjusted every three years (next time 2023)

· Free-financed units

• In-place-rent adjustments for staying tenants via rent table adjustments (take place every 2 years), with strong link to CPI. Cap at 20% (11% in tense markets) within 3 years offers some hedge
• In general tenant fluctuation (LEG c. 10%) offers opportunity to adjust rents
• In tense markets the new rent can be increased to a level of 10% above the local reference rent

Impact on capex

• New construction cost index up 14%1- LEG with relatively small own development pipeline/ exposure
• Minor impact on 2022 investment programme due to long-term contracts

Impact on financing

• Fixed interest rates on 95% of financial debt,
• Average maturity of 7.5 years, no major maturity until 2024
• A 25 bps increase in interests would have a negative impact of €1m on LEG's cash interest payments

Rent level increase in line with inflation1

Changes to remuneration system and new 2022/25 ESG targets integrated - Proposed to AGM 2022

FY-2021 Results - LEG Immobilien SE 31

A highly committed management team

Management Board Susanne Schröter-Crossan Lars von Lackum Dr. Volker Wiegel CEO CFO COO LEG shares1 4,900 Total 7,584 1,265 1,419 Supervisory Board Michael Stefan Dr. Sylvia Dr. Johannes Dr. Claus Dr. Jochen Martin Scharpe Wiesmann Zimmer Eichelberg Jütte Ludewig Nolting Chairman Deputy Chairman LEG shares1 97,257 Total 102,958 250 3,000 1,400 1,051

Appendix

Politics Very limited impact expected - not yet fully rolled out

Temporay suspension of KfW funding programs

• Programs (KfW 40 and 55) were initiated by the former German government to support energy efficient new construction and holistic modernization projects.
• The new minister for economic affairs and climate protection (green party) stopped all programs on January 24. The KfW 55 program for new construction would have expired anyway end of January.
• Due to strong opposition of the real estate industry and tenant associations stop was partly revised.
  • Modernisation program has been reopened and is budgeted with €9.5bn for 2022
  • New building program is limited to new construction for buildings with KfW40 standard and a budget of €1bn for 2022.

Impact LEG: No effect

• For all new development projects in the pipeline for which a KFW 55 standard is planned, an application for funding has already been submitted before the suspension. All of the permits have already been granted.
• All applications under the old regime for energetic modernisation have been approved.

Limitation of rent increase to 11% in tense markets

• Limitation in tense markets for rent increases in the free financed segment for existing contracts capped now at 11% within 3 years (previously: 15%)
• For other markets 20% rent increase within 3 years still applicable
• LEG owns c. 25,000 free financed units in tense markets (c.15%)
• Less than 20% of units coming off restriction until 2027 are in tense markets

Impact LEG: Minimal effect

■ Impact should be very small as previous limit has hardly ever been applied

Expected rent table reform of new government

• Rent tables become mandatory for all cities with a population of >100,000 Increase reference period to 7 years from 6 years
• Mandatory adjustments of rent table after two years. A qualified rent table has to be completely revised after four years.

Impact LEG: Small effect

• A small effect from a slightly longer reference period
• 22% of LEG's units are rent-restricted and are not affected by the regulations, as cost rent adjustments apply every three years

LEG

Transaction market 2021

German market on record high

• Record volume in German residential market of €49bn (+140% yoy)
• · Overall more than 260,000 residential units were negotiated in 2021 (LEG: c. 95,000). 21,700 of these residential units were acquired by LEG
• Net prime yields in the average of the top 7 markets decreased by 0.1 percentage points from 2.3% at the end of 2020 to 2.2% at the end of 2021
• Adjusted for the Deutsche Wohnen takeover the share of foreign buyers exceeded 40%
• According to Savills existing property accounted for 89% of capital invested, while an unprecedented amount of capital (€5.6bn) was invested into development projects.
• 2022 likely to be substantially characterised by the effects of ESG regulations including rising demand for new build, increasing pressure to refurbish existing property, additional mergers to combine resources and an increasing number of disposals of non-refurbished properties²

3 The 21,700 units refer to the number of units which have been signed in calendar year 2021. Transfer of ownership typically take place at a later point in time. The number of units may ther disclosures, depending on the data basis.

LEC

Appendix

ESG strategy on 1-page

Building blocks to climate neutrality by 2045 (contribution in %) 33.0 €1,400-1,600m e n a

Energetic refurbishment

• (25%-30%)
• Targeting 3% of units to be refurbished in 2021
• · At least 30% efficiency improvement
• Insulation of the building shell etc.

Energy transition (65%-70%)

• · Shift from fossil energy mix to green district heating
• Shift towards green electricity along Germany's transition path

C

0

V

e

r

n

a

n

C

e

Tenant engagement (up to 5%)

· Digitisation of heating system via smart metering

Targets

2022 - 2025: Reduction of CO2 emissions by 10% based on CO2e kg/sqm 2022: 4,000 tons CO2 reduction based on own projects (i.e. excl. external drivers)

Social responsible landlord 24% of our units are rent-restricted

• S
• • Rent-restricted Free-financed

■ Social responsibility for our 400,000 customers

2045

LEG targets Investments required for transform

• Providing a home at affordable prices
• 145,700 units at €6.11/sqm
• On average rent of c. €390 per month per unit

Targets

2022 – 2025: Improve Customer Satisfaction Index (CSI) to >70%

2022: Maintain high employee satisfaction level (66% Trust Index)

• ESG targets integrated in managements remunerations system and broken down into organisation
• Compliance management system certified by the Institute for Corporate Governance in the German Real Estate Industry
• One-third of our fully independent supervisory board to be represented by women after the AGM 2022

Targets

2022: Maintain Sustainalytics rating within the negligible risk range (<10)

- Appendix

Among the best in class

Sustainalytics ESG Rating recently improved to top category "negligible"

-

2.662 1.371 ^{959 760} 238 1.362 16,318 1.242 ^{460 155} 10,359

Valuation framework

LEG

Frequency Valuation Date	Semi-annually 30 June - (cut off for data 31 March) 31 December - (cut off for data 30 September)
Scope	Complete portfolio incl. commercial units, parking spaces, including land
Valuation evel	Address-specific (building entrance level)
Technical Assessment	Physical review of 20% of the portfolio as part of technical reviews, data updates in EPIQR (data base for technical condition of buildings)
Model	10 year DCF model, terminal value in year 11, finite Assumption that buildings have a finite life (max. 80 years), decrease in value over a building's lite Residual value of land at the end of building's life Cap ratel increased to reflect the decrease of a building's value over its lifetime
Calculation of Discount-/Cap-Rate	Determination based on data from expert committees (publicly appointed surveyor boards) plus property specific premiums and discounts
Inclusion of legislation (e.g. rental brake)	Yes, via cash-flow
Relevance for Audit of Financial Statements	Yes, model and results audited by the Auditor

CBRE (Appraiser since IPO in 2013)

Same as LEG

Complete portfolio incl. commercial units, parking spaces, excluding land

Economic units (homogeneous cluster of adjacent buildings with similar construction date and condition) provided by LEG

Every economic unit has been inspected at least once Rolling annual inspections, especially of new acquisitions and modernised properties Additional information on change of condition provided by LEG

10 year DCF model, terminal value in year 11, infinite No separate valuation of plot size/ value of land Exit cap rate based on market evidence

Consistent DCF model for all 402 cities/districts and all clients plus property specific premiums and discounts. Results cross-checked with market data (local land valuation boards, asking prices, own transaction data base)

Yes, via cash-flow

No, second opinion for validation only

New EPRA NRV — NTA — NDV

€m	31.12.2021			31.12.2020
	EPRA NRV - diluted	EPRA NTA - diluted	EPRA NDV - diluted	EPRA NRV - diluted	EPRA NTA - diluted	EPRA NDV - diluted
IFRS Equity attributable to shareholders (before minorities)	8,927.9	8,927.9	8,927.9	7,365.6	7,365.6	7,365.6
Hybrid instruments	455.7	455.7	455.7	464.3	464.3	464.3
Diluted NAV (at Fair Value)	9,383.6	9,383.6	9,383.6	7,829.9	7,829.9	7,829.9
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	2,056.5	2,044.8		1,431.3	1,417.4
Fair value of financial instruments	95.2	95.2		102.7	102.7
Goodwill as a result of deferred tax	-267.3	-267.3	-267.3	—55.9	-55.9	-55.9
Goodwill as per the IFRS balance sheet		-103.4	-103.4		-43.7	-43.7
Intangibles as per the IFRS balance sheet		-3.8			-2.8
Fair value of fixed interest rate debt			-307.4			-443.0
Deferred taxes of fixed interest rate debt			59.5			87.2
Revaluation of intangibles to fair value
Estimated ancillary acquisition costs (real estate transfer tax)	1,843.9			1,421.7
NAV	13,111.9	11,149.1	8,765.0	10,729.7	9,247.6	7,374.5
Fully diluted number of shares	76,310,308	76,310,308	76,310,308	75,534,292	75,534,292	75,534,292
NAV per share	171.82	146.10	114.86	142.05	122.43	97.63

1 Including RETT (Real Estate Transfer Taxes) the NTA would have been €170.10

FFO calculation

LEG

€m	FY-2021	FY-2020
Net cold rent	683.9	627.3
Profit from operating expenses	-2.4	-2.5
Maintenance (externally-procured services)	-65.7	-62.3
Staff costs	-87.9	-75.4
Allowances on rent receivables	-10.3	-10.6
Other	16.0	9.5
Non-recurring special costs (rental and lease)	6.4	7.0
Recurring net rental and lease income	540.0	493.0
Recurring net income from other services	8.3	7.1
Staff costs	-26.7	-23.6
Non-staff operating costs	-105.6	-17.6
Non-recurring special costs (admin.)	96.2	8.0
Recurring administrative expenses	-36.1	-33.2
Other income and expenses	0.0	0.0
Adjusted EBITDA	512.2	466.9
Cash interest expenses and income	-86.7	-80.5
Cash income taxes from rental and lease	-0.6	-1.4
FFO I (including non-controlling interests)	424.9	385.0
Non-controlling interests	-1.8	-1.8
FFO I (excluding non-controlling interests)	423.1	385.2
FFO II (including disposal of investment property)	419.9	381.3
Capex	-330.9	-290.4
Capex-adjusted FFO I (AFFO)	92.2	92.8

Net cold rent

▪ +€56.6m or +9.0% driven by portfolio growth (c. 2/3) and organic growth (c. 1/3)

Staff costs

■ Higher staff costs mainly due to additional FTE's (+140), e.g. in newly acquired LWS Plus and TSP

Other

▪ Increase driven by income from value added services and capitalisation of own work

Non-staff operating costs & Nonrecurring project costs

■ Non-staff operating costs include among other the RETT from the Adler-transaction (€65.3m) while non-recurring project costs adjust for these costs

Recurring administrative expenses

▪ Partially driven by higher headcount for IT and internal reallocation of resources

Cash interest expenses

▪ Decline in average interest costs, but increase in financial debt

Balance sheet

Total Equity and Liabilities	20,553.7	15,282.3
Current liabilities	1,898,7	864.2
Other current liabilities	380.6	372.9
Current financing liabilities	1,518.1	491.3
Non-current liabilities	9,702.0	7,028.2
Other non-current liabilities	2,335.0	1,650.5
Non-current financing liabilities	7,367.0	5,377.7
Equity	8,953,0	7,389.9
Total Assets	20,553.7	15,282.3
Assets held for sale	37.0	21.6
Current assets	831.2	413.1
Cash and cash equivalents	675.6	335.4
Receivables and other assets	155.6	77.7
Non-current assets	19,685.5	14,847.6
Other non-current assets	617.8	264.9
Investment property	19.067.7	14,582.7
€m	31.12.2021	31.12.2020

Investment property

• Acquisitions: €2,310.2m
• Revaluation: €1,863.7m
• Capex: €325.4m

Other non-current assets

• Increase in goodwill related to the Adler transaction (€271.1m)
• = Stake in BCP (€85.4m)

Receivables and other assets

▪ Mainly increase in longer term deposits

Cash and cash equivalents

• Cash flow from operating activities: €353.7m (€326.1m)
• Investing activities: €-2,751.9m (€–1,332.2m)
• Financing activities: €2,738.4m (€890.3m)
  • Loans: €1,498.2m
  • Bond issuance: €1,678.0m
  • Repayment of loans: €-238.9m
  • Cash Dividend payment: €-185.6m (scrip dividend offered)

----------- Appendix

Loan to Value

€m	31.12.2021	31.12.2020
Financial liabilities	8,885.1	5,869.0
Excluding lease liabilities (IFRS 16)	27.4	30.8
Cash & cash equivalents	675,6	335.4
Net Debt	8,182.1	5,502.8
Investment properties	19,067.7	14,582.7
Properties held for sale	37.0	21.6
Prepayments for investment properties and acquisitions	25.2	43.3
Property values	19,129.9	14,647.6
Loan to Value (LTV) in %	42.8	37.6

• Rise in LTV by 5.2 PP due to strong anorganic growth
• LTV remained below our maximum target of 43%

Appendix

Income statement

LEG

€m	FY-2021	FY-2020
Net rental and lease income	522.1	429.8
Net income from the disposal of investment property	-1.0	-1.3
Net income from the valuation of investment property	1,863.7	1,170.4
Net income from the disposal of real estate inventory	0.5	-1.5
Net income from other services	5.7	4.2
Administrative and other expenses	-136.4	-66.4
Other income	0.1	0.1
Operating earnings	2,254.7	1,535.3
Net finance costs	-116.0	-140.3
Earnings before income taxes	2,138.7	1,395.0
Income tax expenses	-414.0	-30.5
Consolidated net profit	1,724.7	1,364.5

Net rental and lease income

▪ Strong increase driven by operational improvement (€47.0) and a goodwill write down (€45.6m) in 2020

Valuation of investment property

■ Strong increase due to favourable environment for the asset class affordable living

Administrative and other expenses

■ Increase in employees, corona bonus payments, reallocation of resources and mainly non-recurring special costs (e.g. RETT for the Adler transaction)

Net finance costs

• €19.5m increase in interest expenses mainly due to higher debt, early redemption charges and effects from the valuation of bonds at amortised costs
• Strong positive impact from the fair value measurement of derivatives mainly linked to the convertible bonds (yoy: +€41.5m)

Income tax expenses

■ Tax rate of 19.4% (higher deferred taxes due to revaluation result) vs. 2.2% in 2020 (impact from first time application of the extended trade tax reduction)

Cash effective interest expense

€m	FY-2021	FY-2020	Other interest expenses
Reported interest expense	121.6	102.2	· Mainly expenses in connection with the early redemption of financial instruments
Interest expense related to loan amortisation	-20.4	—15.6	Cash effective interest expense
Interest costs related to valuation of assets/liabilities	-3.0	-3.4	■ Increase relates to the portfolio growth
Interest expenses related to changes in pension provisions	-0.6	-1.3	▪ Interest coverage improved further y-o-y to 5.9 (5.8)
Other interest expenses	-10.9	-1.4
Cash effective interest expense (gross)	86.7	80.5
Cash effective interest income	0.0	0.1
Cash effective interest expense (net)	86.7	80.6

• Appendix

Investments

Reconciliation from investments to adjusted investments

FY-2021	FY-2020
110.9	98.3
108.0	98.3
341.2	290.4
10.2	2.6
2.2	0.2
14.2	4.8
15.8	10.8
298.7	272.0
452.1	388.7
406.8	370 -3
9.57	9.03
42.50	41.00

LEG

• Capex in FFO-table to calculate the AFFO corresponds to total capex minus LWSPlus effect
• The line item maintenance for EPRA cost ratio and net rental and lease income calculation includes only maintenance work done by external companies (€65.7m). The delta to the €110.9m is booked in personnel expenses

-- Appendix

Group P&L effect of Value-add Services

		1 LEG LEG LEG LEG	X
€m	2021	WohnService TechnikService EnergieService LWS Plus Main effects 2021	Only key line items displayed
Net cold rent	683.9
Profit from operating expenses	-2.4
Maintenance (externally-procured services)	-65.7	+ €50m	Craftsmen services via LEG TechnikService/ LEG LWS PLus
Staff costs	-87.9	- €26m	Staff costs mainly via LEG TechnikService
Allowances on rent receivables	-10.3
Other	16.0	+ €23m	Mainly income from LEG EnergyService and multimedia offerings via LEG WohnService
Non-recurring project costs (rental and lease)	6.4
Recurring net rental and lease income	540.0	+ € 48m
Recurring net income from other services	8.3
Staff costs	-26.7
Non-staff operating costs	-105.6
Non-recurring project costs (admin.)	96.2
Recurring administrative expenses	-36.1
Other income and expenses	0.0
Adjusted EBITDA	512.2	+ € 47m
Cash interest expenses and income	-86.7
Cash income taxes from rental and lease	-0.6
FFO I (including non-controlling interests)	424.9	+ €41m
Non-controlling interests	-1.8	-€2m	Minorities LEG TechnikService
FFO I (excluding non-controlling interests)	423.1	+ €39m

LEG

FY-2020

10.5x

37.6%

Appendix

LEG additional creditor information

		Unsecured financing covenants
--	--	-------------------------------

Covenant	Threshold	FY-2021
Consolidated Adjusted EBITDA / Net Cash Interest	≥1.8x	6.0x
Unencumbered Assets / Unsecured Financial Indebtedness	≥125%	180%
Net Financial Indebtedness / Total Assets	≤60%	40%
Secured Financial Indebtedness / Total Assets	<45%	15%

Ratings (Moody's)

Type	Rating	Outlook
Long Term Rating	Baal	Stable
Short Term Rating	P-2	Stable

89.9% 5.0% Derivatives 5.1% Variable interest Key financial ratios

Net debt / EBITDA²

LTV

FY-2021

12.6x

42.8%

Pro-forma financing mix after refinancing in January1

— Appendix

Capital market financing Corporate bonds

LEG

Maturity	ssue Size	Maturity Date	Coupon	Issue Price	ISIN	WKN
2017/2024	€500m	23 Jan 2024 (7 yrs)	1.250% p.a.	99.409%	XS1554456613	A2E4W8
2019/2027	€500m	28 Nov 2027 (8 yrs)	0.875% p.a.	99.356%	DE000A254P51	A254P5
2019/2034	€300m	28 Nov 2034 (15 yrs)	1.625% p.a.	98.649%	DE000A254P69	A254P6
2021/2033	€500m	30 Mar 2033 (12 yrs)	0.875% p.a.	99.232%	DE000A3H3JU7	A3H3JU
2021/2031	€600m	30 Jun 2031 (10 yrs)	0.750% p.a.	99.502%	DE000A3E5VK1	A3E5VK
2021/2032	€500m	19 Nov 2032 (11 yrs)	1.000% p.a.	98.642%	DE000A3MQMD2	A3MQMD
2022/2026	€500m	17 Jan 2026 (4 yrs)	0.375% p.a.	99,435%	DE000A3MQNN9	A3MQNN
2022/2029	€500m	17 Jan 2029 (7 yrs)	0.875% p.a.	99,045%	DE000A3MQNP4	A3MQNP
2022/2034	€500m	17 Jan 2034 (12 yrs)	1.500% p.a.	99,175%	DE000A3MQNQ2	A3MQNQ
Financial Covenants	Net financial debt/ total assets ≤ 60% Secured financial debt/ total assets ≤ 45% Unencumbered assets/ unsecured financial debt ≥ 125% Adj. EBITDA/ net cash interest ≥ 1.8 x

Capital market financing Convertible bonds

€550m €400m Issue Size 8 years/ 8 years/ Term / Maturity Date 30 June 2028 1 September 2025 0.875% p.a. 0.4% p.a. Coupon (semi-annual payment: (semi-annual payment: 15 January, 15 July) 1 March, 1 September) # of shares 3,470,683 3,556,142 €118.4692 €155.2500 Initial Conversion Price €115.2511 €154.6620 Adjusted Conversion Price1 (as of 14 June 2021) (as of 10 June 2021) From 22 September 2022, if LEG Issuer Call share price >130% of the then applicable conversion price conversion price DE000A2GSDH2 DE000A289T23 ISIN	WKN	A2GSDH	A289T2
			From 5 August 2025, if LEG share price >130% of the then applicable
2017/2025 2020/2028

1 Dividend-protection: The conversion price will not be dividend exceeds €2.76 (2017/2025 convertible) and €3.60 (2020/2028 convertible)

LEG share information

Share (02.03.2022; indexed; in %; 1.2.2013 = 100)

Appendix

IPO (2/2013)

53.0m shares

Sustainable increase in share price and market capitalisation since IPO

3/2022 72.8m shares

IPO = Initial Public Offering; CI = capital increase in kind; CB = convertible bond; SD = stock dividend

Financial calendar

LEG

For our detailed financial calendar, please visit our IR web page

IR Contact

Investor Relations Team

Frank Kopfinger, CFA Head of Investor Relations & Strategy

Tel: +49 (0) 211 4568-550 E-Mail: frank.kopfinger@leg-se.com Elke Franzmeier Assistant Investor Relations & Strategy

Tel: +49 (0) 211 4568-159 E-Mail: elke.franzmeier@leg-se.com

Karin Widenmann Senior Manager Investor Relations

Tel: +49 (0) 211 4568-458 E-Mail: karin.widenmann@leg-se.com Gordon Schönell, CIIA Senior Manager Investor Relations

Tel: +49 (0) 211 4568-286 E-Mail: gordon.schoenell@leg-se.com

LEG Immobilien SE | Hans-Böckler-Str. 38 | 40476 Düsseldorf, Germany Phone: +49 (0) 2114568-400 | Fax: +49 (0) 211 4568-22 204 | E-Mail: ir@leg-se.com | Internet: www.leg-se.com