Vonovia SE

Environmental & Social Information • Dec 15, 2020

Vonovia´ s Residential Sustainable Approach

Energy Efficiency in Construction and Housing Webinar hosted by Kepler Cheuvreux

December 15, 2020

Megatrends – Challenge & Opportunity

An increasing part of the population is moving into urban areas

Ca. 1/3 of greenhouse gas emissions are related to real estate

An increasing share of the population is 65+ years

We are providing apartments at fair price levels to a growing urban population

Our products and services give more than one million people an affordable home in their apartment and neighborhood

We are a driving force of the industry and have embarked on a climate path that will result in a CO² neutral portfolio by 2050 The energy-efficient modernization of the housing stock and innovative

solutions for carbon neutral residential

neighborhoods are paramount for achieving climate protection targets We are preparing at least one third of all apartments that become vacant for elderly tenants

Demographic changes require refurbishing apartments to enable an ageing population to stay in their homes with little or no assistance for longer

Our scale, sustainable business model and access to capital markets enable us to assume a leading role in our industry for finding and implementing solutions.

Energy Efficiency in Construction and Housing page 3

Serving a Fundamental Need in a Highly Relevant Market. Our Business Is Deeply Rooted in ESG

We provide a home to around 1 million people from ca. 150 nations.

• CO² emissions related to housing are one of the largest sources of greenhouse gas emissions.
• As a listed, blue-chip company we are rightfully held to a high standard.

Responsibility

for customers, society

and employees

Reliable and transparent corporate

governance built on trust

Commitment to

climate protection

and CO² reduction

Sustainability Strategy	Vonovia has further developed its sustainability strategy, aligned it to ESG dimensions and defined targets. Top sustainability issues for Vonovia were identified in a thorough materiality analysis.
UN Sustainability Targets (SDGs)	8 of the 17 United Nations Sustainability Goals (SDGs), have been identified as essential and are part of our sustainability strategy. Our sustainability strategy has the largest impact on these SDG's.
Climate path / C0 2 reduction & Climate Conference	Vonovia has defined a climate path for the portfolio to achieve a climate-neutral building stock by 2050. Vonovia hosted the Climate Conference "Perspectives for Climate-neutral Living" in October and presented itself as the driving force for climate protection in the housing industry.
Innovation Renewable Energies	Innovative research center in Bochum Weitmar to develop solutions for CO -neutral 2 residential properties and sector coupling. Research in new technologies & use of renewable energies.
ESG ratings improved	Substantially improved ESG ratings. Sustainalytics (1st percentile worldwide), ISS Oekom (from D to C), MSCI (from B to A) CDP (from C to B). Inclusion in leading ESG indices such as DAX 50 ESG, STOXX Global ESG Leaders, STOXX Europe ESG Leaders 50, Dow Jones Sustainability Europe Index.
Sustainability Performance Index	Development of a sustainability performance index for implementing non-financial KPIs in the management system.

Process & result of the materiality analysis

• Stakeholder survey: online survey (142), stakeholder interviews (42)
• Assessment of business relevance and evaluation of the company impact via workshops

A1	A home at a fair rental level
A3	Adequate products and services in relation to demographic change
A5	Customer satisfaction and service quality
B1	Neighborhood development and contribution to infrastructure
C1	Sustainable new construction and refurbishment
D1	CO2 reduction of existing buildings
D2	Renewable energies and energy mix
E1	Attractiveness as an employer
E4	Diversity and equal opportunities
F1	Governance and compliance

CO² reduction of existing buildings

≈ 3% annual modernization rate - CO² Intensity: 30-35 kg CO² /sqm by 2030.

Sustainable and CO2- efficient new construction of buildings

85 % of completed new buildings in energy efficiency class A or better and set target on average primary energy need

Biodiversity

Expansion of wildflower meadows to 100,000 sqm and 100 insect habitats.

Low-barrier refurbishment

Maximize number of apartments with low barrier refurbishment.

Customer satisfaction & service quality

Increase customer satisfaction and our CSI.

Attractive employer - best in class

Increase employee satisfaction.

Workforce gender Diversity

Increase in the proportion of women in the top two management levels below the Management Board.

Vonovia's Sustainability Strategy is Committed to 8 United Nations Sustainability Development Goals

We consider 8 of the 17 United Nations Sustainability Development Goals to be material to our business activities and aligned with our sustainability strategy. Our sustainability strategy is expected to have positive impacts on these important goals.

				SUSTAINABLE CARALS
1 POVERTY 服务等等。	2 视频 1	3 AND MELFECING -W	4 EDUCATION	5 EQUALITY 0	CLEAN WILLTER - AND SANTATION 0
AFFORDARIE AND CLEAN ENERGY (0)	O ECONOMIC GROWTH	AND ASTRICTURE	10 MEGUALITIES	11 SUSTANABLE CITES 15 19 10 10	12 CONSULE AND PROGRUPH A C
13 ACHATE	14 BELOW WATER	15 LAND	16 AND STRENG INSTITUTIONS	17 PARTINERSHIPS 90	(28) SUSTAINABLE DEVELOPMENT GOALS

Employer attractiveness Diversity and

equal opportunity

• Renewable energies & energy mix

• Capital markets appeal
• Governance & compliance

Biodiversity and

water

Adequate products and services in relation to demographic change

Partnerships / holdings

• Neighborhood development and contribution to infrastructure
• Sustainable new construction and refurbishment
• A home at a fair rental level

• CO² reduction of existing buildings
• Energy-efficient modernization

Our Ambition: Vonovia is a driving force in the housing industry on the way to a climate-neutral building stock

Vonovia's Climate Path towards CO² Neutrality through Continued Modernization, Renewable Energy and Sector Coupling

Note: This climate path refers to the German portfolio; we are in the process of developing separate climate paths for the portfolios in Austria and Sweden. Source: Fraunhofer ISE modelling of Vonovia portfolio. Reduction of energy need of 160 kWh towards 60% through the following measures: Building envelope (insulated facade, windows) to become KFW Standard 100-70; scenarios 2 and 3 include the simulation of a change of energy sources. ² In order to achieve the climate neutral case certain regulatory adjustments still need to be made and not all of the technological concepts have been fully developed yet.

Vonovia's Climate Strategy

• Energy-efficient modernization of ca. 3%
• Continue building modernization with even greater depth (up to 60%)
• Additional efficiency gains from fuel switch & renewable energy:
  • Green district heat
  • New technologies
  • Sector coupling in the neighborhood (PV & mobility)
• New construction: CO² optimized, use of renewable energy (energy efficiency class A and better)

Existing technologies

• Continue energy efficient building modernization with a 60% reduction rate for postrefurbishment energy need
• Replacement of oil heating systems with gas condensing boilers
• Hybrid heating (combination of condensing boilers and solar, renewable)
• Heat pumps
• Green district heat
• Sector coupling

Tomorrow's Energy Center Energiesprong – Serial

Construction of a proprietary research center in Bochum Weitmar to develop renewable energy systems

Innovation for CO²

• Integration of technologies such as fuel cells, electrolyzer, etc.
• The objective is to evaluate different technologies in terms of economic and ecological impact with a view to roll them out in other neighborhoods of our portfolio

Refurbishment

-neutral Heat Generation

• Concept for cost-neutral modernization by combining serial refurbishment and the integration of renewable heat and electricity
• First pilot in Bochum about to be implemented;

• Additional pilots planned until 2024

• Pellet heating is almost climate neutral

• Particularly suitable in connection with local district heating
• Pellet costs are similar to gas costs; heating plants are more expensive
• When subsidized, pellet heating is a viable ecological and economically feasible alternative
• First concepts for potential pilots underway

Pellet Heating Project Hydrogen Technology

• Decentralized generation of green hydrogen via PV
  • Areas of application:
    • Hydrogen storage for subsequent heat generation
    • Disposal of hydrogen
• Technology currently still too expensive; a growing market is expected to lead to substantial cost reductions, rendering H² economically feasible

New Construction and Development Projects are Sustainable and CO² -optimized

Environment

• ca. 500 condominiums
• ÖGNI NH Certificate Gold / klimaaktiv Gold Certificate
• Low-emission and low-pollution building materials
• Sustainable mobility concept

Vienna, Marina Tower Berlin-Grünau, pilot houses

• 2-5 room apartments
• Wood-hybrid construction
• Low-emission and low-pollution building materials
• Low-energy houses Standard KfW 40

Buchloe, An der Halde Bochum, Waldenburger Str.

• New construction of 27 apartments (50% of them barrier-free)
• Wood hybrid construction
• Energy efficiency class A+ / Standard KfW 55
• Pellet heating incl. earth bunker

• New construction of 14 apartments
• Fully automated pellet boiler
• Energy efficiency class A+ (heating)
• Photovoltaic system

New construction projects geared towards energy efficiency

• Use of renewable energies (PV, CO² , renewable heating)
• Mainly A+ KfW Program 55

85% New construction better efficiency class A / KfW 55 standard

A home at a fair rent level	Fair rental levels for low- to mid-income households	Self-imposed obligation to cap modernization rent increases to max. €2 per sqm; Guarantee to tenants 70+ years that rents will remain affordable even if market rents change	Hardship case management to effectively assist tenants in financial distress	COVID-19 – special promise that we will find individual solutions for tenants who struggle financially; no one to lose the roof over their head
Contribution to society and stability of local neighborhoods	242 social projects in our neighborhoods; Cooperation with non profit organizations to support tenants in need	Vonovia Foundation supports multitude of social projects	34 Neighborhood managers and social workers to assist tenants and promote unity in diversity in our neighborhoods	Customers from ca. 150 different countries and tenants from all walks of life
Top employer	It is our ambition to be the best employer in the real estate and craftsmen industries	Employer appeal – we are an attractive employer for former, current and future employees	Talents – we actively support our employees in their development to become the experts and leaders of our industry	Culture & change – we share a common culture of diversity, performance and appreciation in an developing organization that embraces change

Urban neighborhoods are

• ...the right level to sustainably manage the megatrends,
• ...the right level for developing our 10 year master plan,
• ...our unique selling point!
• Ca. 3/4 of our portfolio is located in almost 600 urban districts, each with an average of 430 apartments
• Each neighborhood has individual challenges that need be taken into account:
  • Portfolio / properties
  • People
  • Urbanization, climate, demographics, mobility, integration

Our stock in urban Neighborhoods

Social

circles & gradient mark location & quantity of quarters

Vonovia is in the process of developing and implementing a Sustainability Performance Index with quantitative, non-financial KPIs and medium-term targets until 2025.

	CO reduction in the portfolio 2
Specific annual	Energy-efficient new constructions
improvement	Volume of senior-friendly apartment refurbishments	Sustainability Performance
targets for each	Customer satisfaction	Index
score	Employee satisfaction
	Workforce gender diversity

s p e st xt e N	12/2020	Supervisory Board to decide on new management remuneration scheme to be presented to the 05/2021 AGM for approval
	03/2021 (FY 2020 results)	Updated Management System and reporting of 2019 and 2020 actuals plus 2021 guidance
	04/2021 (2020 Sustainability report)	Sustainability Performance Index roadmap and targets for 2025
	05/2021 (AGM)	Resolution on new management remuneration scheme

Energy Efficiency in Construction and Housing page 16

Contact

Rene Hoffmann Head of Investor Relations

+49 234 314 1629 rene.hoffmann@vonovia.de

Catrin Coners Head of Sustainability & Strategy

+49 234 314 1642 catrin.coners@vonovia.de

www.investors.vonovia.de

Energy Efficiency in Construction and Housing page 17

Energy Innovation Center Bochum Weitmar

• In partnership with renowned Fraunhofer institutes, Vonovia is implementing a three-year hands-on innovation project as part of Open District Hub e. V. in our neighborhood in Bochum-Weitmar to develop and test new technologies in ongoing operations.
• The aim of the project is to supply the neighborhood with electricity and heating that is as carbon-neutral as possible. We aim to achieve this by linking the energy sectors via a central platform.
• A smart, self-learning energy management system then ensures that the right energy is distributed to tenants when they need it – at electric charging stations, in the form of electricity for tenants' own households or in the form of heating.

Level		Measure
Apartment	1	Implementation of measures that do not involve any structural intervention, e.g., optimized heating system settings
	2	Digitalization of buildings and apartments, e.g., to feature smart meters
Building	3	Energy-efficient refurbishment, e.g., measures relating to the building shells and heating systems
	4	Infrastructure for e-mobility, e.g., charging stations and e-wall sockets
	5	Sustainable energy supply, e.g., photovoltaic systems for tenant electricity
Neighborhood	6	Building digitalization and networking
	7	Sector coupling (heat, electricity, mobility, etc.) in the neighborhood via digital platform
	8	Storage and distribution of energy generated in a decentralized structure enables on-site consumption
	9	Promotion of biodiversity

Promotion of Biodiversity in Our Neighborhoods

Vonovia facts

• 15 million square meters of green spaces
• 220,000 trees
• 23 tree species, 20 of which are climate-resistant
• 1,000 replacement plantings
• 300 km hedges

Products Cooperation with NABU NRW

• Cooperation with NABU NRW since the end of 2019 and other partners (Animal Aided Design, Emscher Genossenschaft Innovation City, ...)
• Nationwide cooperation with NABU in preparation from 2021

• Central cooperation for neighborhood development: Pilot project launched in Bochum-Weitmar

• Wildflower meadow with nesting aids (insect habitats)

• Roof/facade greening
• Organic tenant gardens
• Floristic resilience and diversity
• Ecological pruning
• Rainwater Management

Measures implemented

• Nesting aids for bats and birds / Elements for facade greening
• approx. 100,000 sqm wildflower meadow
• Green roofs
• Ecological pruning

Board of Directors:

Defines sustainability strategy

Sustainability Committee:

• Meets 3-4 times a year (Management Board / Heads of Sustainability, Communications and Financial Planning & Analysis)
• Sustainability Agenda
• Decides on strategic directions and sustainability goals

Sustainability Department:

• Further development of the sustainability strategy & roadmap
• Defines & monitors sustainability targets
• Implements sustainability projects
• Gives impetus and drives initiatives
• Responsible for reporting & sustainability report, ratings

Implementation of sustainability aspects in departments and operational units Operational

Recognition of ESG Performance ESG Ratings and Indices

ESG Ratings

ESG Indices

Vonovia is a constituent of various ESG indices, including the following: DAX 50 ESG, STOXX Global ESG Leaders, STOXX Europe ESG Leaders 50, Dow Jones Sustainability Europe Index

Governance Structure

• The duties and authorities of the three governing bodies derive from the SE Regulation, the German Stock Corporation Act and the Articles of Association. In addition, Vonovia is fully in compliance with the German Corporate Governance Code.
• In the two-tier governance system, the management and monitoring of the business are strictly separated from each other.

Annual General Meeting (AGM)

Two-tier Governance System

• Shareholders can exercise their voting rights.
• Decision making includes the appropriation of profit, discharge of members of the SVB and MB, and capital authorization.

Supervisory Board (SVB)

• Appoints, supervises and advises MB
• Examines and adopts the annual financial statements
• Forms Supervisory Board Committees
• Fully independent
• Board profile with all required skills and experience

Fitschen (Chairman)

Just

Burkhard Ulrich Drescher

Prof. Dr. Klaus Rauscher

Dr. Ariane Reinhart

Clara-Christina Streit

Dr. Florian

Christian Ulbrich

Dr. Ute

Management Board (MB)

• Jointly accountable for independently managing the business in the best interest of the company and its stakeholders
• Informs the SVB regularly and comprehensively
• Develops the company's strategy, coordinates it with the SVB and executes that strategy

CEO Rolf Buch

CRO Arnd Fittkau

CFO Helene von Roeder

Energy Efficiency in Construction and Housing page 24

Müller

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Neither this presentation nor the information contained in it may be taken, transmitted or distributed directly or indirectly into or within the United States, its territories or possessions. This presentation is not an offer of securities for sale in the United States. The securities of the Company have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the securities of the Company may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States unless registered under the Securities Act.

Tables and diagrams may include rounding effects. Per-share numbers for 2013 and 2014 are TERP-adjusted.