Vonovia SE

Investor Presentation • Mar 7, 2019

FY2018 Earnings Call March 7, 2019

Rolf Buch, CEO Helene von Roeder, CFO

Agenda
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

Results	3
Valuation	10
New Construction	14
Financing	15
European Activities	17
Guidance	18
Appendix	20

Highlights
Results	Valuation New Construction	Financing	European Activities	Guidance	Appendix
2018 is Vonovia's	sixth set of full-year results since the IPO. As in each prior year, all important KPIs have improved over the preceding year, underlining the stability of Vonovia's		business model and the sustainability of our performance.
Operations	Organic rent growth of 4.4% EBITDA Rental €1,315.1m (+14.5%) EBITDA Value-add €121.2m (+18.7%)
Cash Earnings & Dividend	FFO 1 €1,064.7m (+15.8%) FFO 1 €2.06 (+8.4%) per end-of-period NOSH Dividend per share of €1.44 to be proposed to the AGM on May 16
Valuation	Adj. NAV per share €44.90 as of Dec. 31, 2018 L-f-l portfolio value growth of 13% 2.2% performance 3.1% investments 7.7% yield compression
Capital Structure	LTV 42.8% as of YE2018 Net debt/EBITDA multiple of 11.4x

We are well-positioned to continue on our upward trajectory and confident in our ability to deliver sustainable growth in 2019 and beyond.

Continuing Efficiency Gains

				Rental income: +0.7%
				Adj. EBITDA Operations: +4.0%
				FFO 1: +9.8%
Delta	2017	2018		Vonovia excl. Buwog & Victoria Park
-3.2%	352,848	341,589	#	Average number of residential units
+0.7%	1,667.9	1,680.4	€m	Rental income
+1.6%	-258.0	-262.1	€m	Maintenance expenses
-12.8%	-261.3	-227.9	€m	Operating expenses
+3.6%	1,148.7	1,190.3	€m	Adj. EBITDA Rental
+17.9%	102.1	120.3	€m	Adj. EBITDA Value-add
+4.0%	1,222.9	1,271.8	€m	Adj. EBITDA Operations
-13.4%	-287.5	-248.9	€m	Interest expense FFO 1
-15.4%	-15.9	-13.5	€m	Current income taxes FFO 1
+9.8%	919.5	1,009.4	€m	FFO 1

Results Valuation New Construction Financing European Activities Guidance Appendix

Average portfolio volume excluding Buwog and Victoria Park declined by 3.2%

Rent Growth Acceleration

Results	Valuation	New Construction		Financing	European Activities			Guidance		Appendix
				Positive rent growth trajectory
Rent growth drivers (last 12M)	2018	2017	Delta		2013	2014	2015	2016	2017	2018
				Market driven	1.6%	1.6%	1.7%	1.5%	1.6%	1.3%
Sitting tenants (incl. subsidized rents)	0.9%	1.2%	-30bps	Modernization	0.4%	0.9%	1.2%	1.8%	2.5%	2.9%
				Space creation	---	---	---	---	0.1%	0.2%
New lettings (with no material investment)	0.4%	0.4%	---	Organic rent growth	1.9%	2.5%	2.9%	3.3%	4.2%	4.4%
Subtotal market driven rent growth	1.3%	1.6%	-30bps
Modernization (including new lettings with investments 	2.9%	2.5%	+40bps
Optimize Apartments)				Investment track record (€m)
Subtotal l-f-l rent growth	4.2%	4.1%	+10bps	New Construction Upgrade Buildings						1,300 - 1,600
				Optimize Apartments					1,139
Space creation	0.2%	0.1%	+10bps					778
				172		347	472
Organic rent growth	4.4%	4.2%	+20bps	71 2013 2014		2015	2016	2017	2018	2019E

• Adj. EBITDA Operations increased 14.3% to €1,397.5m.
• EBITDA Operations margin was up 50bps to 73.6%.
• Excluding Buwog and Victoria Park the VNA standalone margin grew by 240bps to 75.5%.

Adj. EBITDA Operations margin		€m	FY 2018	FY 2017	Delta
	VNA standalone adj.
	EBITDA Operations margin of 75.5%	Rental income	1,894.2	1,667.9	+13.6%
67.7%	73.6% 73.1% 70.9%	Maintenance expenses	-289.7	-258.0	+12.3%
		Operating expenses	-289.4	-261.2	+10.8%
63.8% 60.8% 60.0%		Adj. EBITDA Rental	1,315.1	1,148.7	+14.5%
		Income	1,462.2	1,170.5	+24.9%
		of which external	203.9	161.6	+26.2%
		of which internal	1,258.3	1,008.9	+24.7%
		Operating expenses	-1,341.0	-1,068.4	+25.5%
		Adj. EBITDA Value-add	121.2	102.1	+18.7%
IPO 2013 2014 2015	2016 2017 2018	Adj. EBITDA Other (Consolidation)	-38.8	-27.9	+39.1%
EBITDA Operations Margin
		Adj. EBITDA Operations	1,397.5	1,222.9	+14.3%

FFO 1 Growth
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

• FFO 1 was up ca. €145m (15.8%) y-o-y or 8.4% per share (eop) based on 6.8% more issued shares.
• Approx. €90m growth come from VNA organic growth and the remaining ca. €55m from the contribution of Buwog (three quarters) and Victoria Park (two quarters).

€m (unless indicated otherwise)	FY 2018	FY 2017	Delta
Adj. EBITDA Operations	1,397.5	1,222.9	14.3%
Interest expense FFO 1	-317.4	-287.5	10.4%
Current income taxes FFO 1	-15.4	-15.9	-3.1%
FFO 1	1,064.7	919.5	15.8%
of which attributable to Vonovia's shareholders	1,002.4	864.9	15.9%
of which attributable to Vonovia's perpetual hybrid capital investors	40.0	40.0	0.0%
of which attributable to non-controlling interests	22.3	14.6	52.7%
Capitalized maintenance	-137.7	-85.7	60.7%
AFFO	927.0	833.8	11.2%
Adjusted EBITDA Sales	208.3	112.1	85.8%
Current income taxes FFO 2	-53.9	-19.2	>100%
FFO 2	1,219.1	1,012.4	20.4%
FFO 1 € / share (eop NOSH) (2018: 518m; 2017: 485m)	2.06	1.90	8.4%
FFO 1 € / share (avg. NOSH) (2018: 506m; 2017: 476m)	2.11	1.93	9.1%

Value-add Growth
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

Concept	Value-add and NAV
Insourcing of services to ensure maximum process management and cost control.	NAV does not account for Vonovia's Value-add
Expansion of core business to generate additional revenues by walking back the value chain and offering services that were previously provided by third parties (internalization of margin).	Segment. Applying the impairment test discount rate1 to the 2019E Adj. EBITDA Value-add suggests an additional
Two types of Value-add 1.Internal savings (craftsmen)  ca. 75% 2.External income (e.g. multimedia, smart metering, energy)  ca. 25%	value of ~€5 per share (~11% on top of 2018 Adj. NAV).

Strong Sales Results
	Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix
					Total sales volume in 2018 was 15,102 residential units (prior-year period: 11,780), of which 2,818 were Recurring Sales

(prior-year period: 2,608) and 12,284 Non-core Disposals (prior-year period: 9,172).

• In spite of value growth of the portfolio, Recurring Sales fair value step-ups were 35.5% in 2018 after 32.7% in 2017. The 2018 financial year includes for the first time also Austrian disposals.
• The Non-core Disposals saw a record fair value step-up of 23% in 2018, as we utilized the high market liquidity to profitably dispose of our Non-core Portfolio. The Non-core Disposal Program is now basically completed.

	RECURRING SALES		NON-CORE DISPOSALS		TOTAL
€m (unless indicated otherwise)	2018	2017	2018	2017	2018	2017
Income from disposal	356.1	305.9	741.4	900.5	1,097.5	1,206.4
Fair value of disposal	-262.8	-230.6	-602.9	-834.9	-865.7	-1,065.5
Adj. profit from disposal	93.3	75.3	138.5	65.6	231.8	140.9
Fair value step-up (%)	35.5%	32.7%	23.0%	7.9%

Selling costs	-23.4	-28.8
Adj. EBITDA Sales	208.3	112.1

¹ Adjusted for effects from cross currency swaps. ² Based on the number of shares on the reporting dates Dec. 31, 2018 (518.1m) and Dec 31, 2017 (485.1m).

NAV Growth

Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

Adj. NAV increased by 24.6% (16.7% per share).

€m	Dec. 31,	Dec 31,
(unless indicated otherwise)	2018	2017
Equity attributable to Vonovia's shareholders	17,880.2	15,080.8
Deferred taxes on investment properties	8,161	6,185.7
Fair value of derivative financial instruments1	87.2	26.9
Deferred taxes on derivative financial instruments	-23.5	-8.8
EPRA NAV	26,105.0	21,284.6
Goodwill	-2,842.4	-2,613.5
Adj. NAV	23,262.6	18,671.1	+24.6%
EPRA NAV €/share2	50.39	43.88
Adj. NAV €/share2	44.90	38.49	+16.7%

Is Adj. NAV a good proxy for the value of a
diverse operating business?
By definition, the Adj. NAV
reflects the brick and mortar value of the
buildings
applies market terms and assumes the
properties are owned by "anyone"
This approach does not adequately account for
the Value-add Segment
the cost advantage and operating platform
of a professional owner
the Development profit
the Recurring Sales profit

Value Growth

Valuation KPIs	Vonovia Total	Germany	Sweden	Austria
In-place rent multiple	21.2x	21.5x	14.6x1	23.6x1
Fair value €/sqm	1,648	1,677	1,563	1,346
Fair value €bn	44.2	39.5	1.8	2.9
Market rent growth assumption2	---	1.7%	2.0%	0.9%

Value growth drivers (€m)	FY2018	FY2017
Performance	9723	1,079
Investments	944	695
Yield compression	2,665	2,455
Total	4,581	4,229

¹ In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden, for example, includes certain ancillary costs. ² Market rent growth assumption in valuation model. ³ Includes a small positive currency impact from a value increase in Swedish Krona.

Broad-based Value Growth in All Our Regional Markets

Results Valuation		New Construction	Financing		European Activities	Guidance	Appendix
Regional Market	Fair value (€/sqm)	Multiple (in-place rent)	Impact from yield	Total	value uplift
Southern Ruhr Area (Dortmund, Essen, Bochum)	1,240	17.8	compression 12.1%			Kiel 11.5%
Bremen	1,451	21.6	10.1%
Berlin	2,370	29.7	9.8%			Hamburg 12.6%
Stuttgart	2,166	23.3	8.7%		Bremen 14.7%
Freiburg	2,162	24.5	8.5%				Berlin 15.9%
Leipzig	1,395	19.9	8.0%			Hanover 13.7%
Rhineland (Cologne, Düsseldorf, Bonn)	1,743	20.8	7.9%		Westphalia 16.5%
Hamburg	1,915	22.9	7.7%		N. Ruhr Area 11.5% S. Ruhr Area 17.8%
Kiel	1,371	18.7	7.6%		Rhineland 11.7%		Leipzig 13.5% Dresden 8.4%
Rhine Main Area (Frankfurt, Darmstadt, Wiesbaden)	2,199	22.8	7.5%
Westphalia (Münster, Osnabrück)	1,257	17.9	6.9%
Hanover	1,549	20.1	6.6%		Rhine Main 12.7%
Munich	3,132	31.7	6.4%
Northern Ruhr Area (Duisburg, Gelsenkirchen)	956	14.3	5.0%
Dresden	1,360	19.1	3.8%
Other Strategic Locations	1,508	19.4	6.0%		Stuttgart 14.4%	Munich 13.2%
Total Strategic Locations	1,683	21.5	7.9%
Vonovia Germany1	1,677	21.5	7.8%		Freiburg 10.8%		>13% <13%

While value growth was broad-based and largely homogeneous across the different regional markets, supportive of our strategy to focus on Germany's urban growth regions, underlying valuation levels differ significantly.

¹ Including Non-strategic locations.

FY2018 Earnings Call

Results Valuation New Construction Financing European Activities Guidance Appendix Impairment Test

• Predominantly as a result of yield compression in 2018, the impairment test resulted in a goodwill impairment of €681.2m across different regions.
• The acquisition of Buwog and Victoria Park led to an additional goodwill of €910.1m, resulting in a net goodwill increase of €228.9m.
• The 2018 discount rate for the purpose of the impairment test was 3.6% (post-tax) and unchanged compared to 2017.
• The underlying fundamentals of urban residential markets remain strong; and while we cannot guide the magnitude of further yield compression, at least parts of the remaining goodwill might be impacted by the 2019 impairment test, which in turn would have an effect on the EPRA NAV.

No impact on Adj. NAV, as the impairment only affects the goodwill and hence the EPRA NAV.

¹ 2018 and 2019 incl. Buwog.

Under construction

Under construction

Results Valuation New Construction Financing European Activities Guidance Appendix LTV Remains in Comfort Zone

• LTV as of December 31, 2018, was 42.8%; Net debt/EBITDA multiple¹ was 11.4x.
• Against the background of the stable cash flows and the strong long-term fundamentals in our portfolio locations we see continued upside potential for our property values and do not see material long-term downside risks.
• We therefore continue to believe that the LTV target range of 40% 45% is adequate for our low risk portfolio and feel generally comfortable with this range.

€m (unless indicated otherwise)	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Non-derivative financial liabilities	20,136.0	20,053.2	14,060.5
Foreign exchange rate effects	-33.5	-31.5	-23.5
Cash and cash equivalents	-547.7	-507.3	-266.2
Net debt	19,554.8	19,514.4	13,770.8
Sales receivables	-256.7	-273.2	-201.2
Adj. net debt	19,298.1	19,241.2	13,569.6
Fair value of real estate portfolio	44,239.9	41,948.6	33,436.3
Shares in other real estate companies	800.3	733.6	642.2
Adj. fair value of real estate portfolio	45,040.2	42,682.2	34,078.5
LTV	42.8%	45.1%	39.8%
LTV (incl. perpetual hybrid)	45.1%	47.5%	42.8%
Net debt/EBITDA multiple1	11.4x	---	9.9x

¹ Adj. net debt quarterly average over Total EBITDA.

FY2018 Earnings Call

Solid Capital Structure with Smooth Maturity Profile and Diverse Funding Mix

• Unwavering commitment to investment grade rating
• Maintain diverse funding mix to preserve best possible optionality
• LTV target range of 40%-45%

Results	Valuation	New Construction	Financing		European Activities	Guidance	Appendix
				KPI / criteria			Dec. 31, 2018
		Unwavering commitment to investment			Corporate rating (S&P)		BBB+
				LTV			42.8%
grade rating				Net	debt/EBITDA multiple1		11.4x
	Maintain diverse funding mix to			ICR			4.7
					ratio2 Fixed/hedged debt		96%
	preserve best possible optionality				debt2 Average cost of		1.8%
	LTV target range of 40%-45%				Weighted average maturity2		7.8 years
					Unencumbered assets		56%

¹Adj. net debt quarterly average over Total EBITDA. ²Excl. equity hybrid. ³ Incl. Jan 2019 Bond and secured loan.

Results Valuation New Construction Financing European Activities Guidance Appendix European Activities Update

• Cautious step-by-step approach to minimize risk. Currently ca. 10% of the portfolio are located outside Germany. We will continue to monitor the German market and our defined European target markets in accordance with our acquisition criteria.
• Germany is expected to remain the dominant market also in the foreseeable future. No specific target rate or ratios in terms of German vs. non-German exposure but highly opportunistic approach as is the case for our German M&A activities.

	Austria (run a scalable business)	Sweden (main focus)	France (biggest long-term potential)	The Netherlands (no active role)
% of total portfolio	~6%	~4%	Not meaningful	0%
Next steps	• Gradual asset rotation via recurring sales of mature assets and development of new assets in a similar magnitude • Run scalable operating business • Follow accretive acquisition opportunities on an opportunistic basis	• Pursue accretive acquisition opportunities on an opportunistic basis • Add Vonovia experience and skill set and use Victoria Park as a platform to further grow in the Swedish residential market • Demonstrate success and sustainability of Vonovia business model to show it also works outside of Germany	• Utilize 10% stake in SNCF portfolio to gain more profound understanding of the market • Safeguard pole position and first-mover advantage for potential opening of social housing to commercial ownership • Pursue accretive acquisition opportunities on an opportunistic basis if and when legislation changes and allows the payout of economic dividends from social housing	• Continue market research • Be prepared for accretive acquisition opportunities on an opportunistic basis

2019 Guidance
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

	2018 Actuals1	2019 Guidance1
Organic rent growth (eop)	4.4%	~4.4%
Rental Income (€m)	1,894.2	2,020 – 2,070
Recurring Sales (# of units)	2,818	~2,500
FV step-up Recurring Sales	35.5%	~30%
EBITDA (€m)	1,397.5	1,650 – 1,700
FFO (€m)	1,064.7	1,140 – 1,190
FFO (€/share)	2.06	2.20 – 2.30
Dividend (€/share)	1.442	~70% of Group FFO
Modernization & New Construction (€m)	1,139.0	1,300 - 1,600
Underlying number of shares (million)	518.1	518.1

¹ Based on the financial KPIs employed by management (2018: EBITDA Operations and FFO 1. 2019: Total EBITDA and Group FFO). ² To be proposed to the 2019 AGM in May and based on the current number of outstanding shares.

IR Contact & Financial Calendar

Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix
	Contact			Financial Calendar 2019
Rene Hoffmann			Mar 8	Roadshow in Frankfurt (Commerzbank)
Head of Investor Relations			Mar 18-19	Roadshow in London (Deutsche	Bank)
Vonovia SE			Mar 20	Roadshow in Paris (BAML)
Universitätsstraße 133			Mar 25	Roadshow in Amsterdam (Kempen)
44803 Bochum			Mar 18-19	Roadshow in London (Bankhaus	Lampe)1
Germany			Mar 28	Conferences in London (Commerzbank & BAML)1
			Apr 3	Conference in Baden-Baden (Bankhaus	Lampe)1
+49 234 314 1629			Apr 10-12	Roadshow in Asia (Seoul, Hong Kong, Singapore)
rene.hoffmann@vonovia.de			May 7	Interim results 3M 2019
investorrelations@vonovia.de			May 16	Annual General Meeting
			May 17	Conference in Paris (Kepler Cheuvreux)1
			May 21	Conference in Tarrytown, New York (Berenberg)	1
	App & Website		May 22	Conference in Amsterdam (Kempen)
			May 24	Conference in Frankfurt (HSBC)1
			Jun 4-5	Capital Markets Day
			Jun 6	Conference in Berlin (Deutsche Bank)
			Jun 7	Conference in Paris (Goldman Sachs)
			Jun 12	Conference in Paris (Exane	BNP Paribas)
			Jun 27	Issuer & Investor Debt Forum in Frankfurt (Deutsche Bank)
			Aug 2	Interim results 6M 2019
			Sep 20	Conference in London (Société	Generale)
			Sep 23	Conference in Munich (Goldman Sachs / Berenberg)
			Sep 24	Conference in Munich (Baader)	1
	https://investors.vonovia.de		Sep 26	Fixed Income RE Conference in London (Morgan Stanley)
			Nov 5	Interim results 9M 2019
			The most	up-to-date financial calendar	is always	available online.
1 IR level

Appendix
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

Strategy	21-23
Regional Markets & Portfolio Clustering	24-25
Fair Value per sqm Evolution	26
Portfolio Evolution	27
Investments	28
Acquisition Track Record	29-30
FY 2018 – Additional Data	31-33
Financing Details	34-35
Residential Market Data	36-39
VNA Shares	40-42
Management Compensation	43-45
Disclaimer	46

4+1 Strategy Has Evolved into 4+2 Strategy

Results Valuation New Construction Financing European Activities Guidance Appendix Financing Solid capital structure 2 Portfolio Management Valueinvestments supplement internal growth 3 Value-add Leveraging Bto-C nature of the business 4 Innovative Traditional Property Management Efficient operations of scalable business 1 Reputation & Customer Satisfaction European activities enhance accretive acquisition opportunities Similar to Germany, we closely monitor clearly defined geographies for opportunities, applying the same acquisition criteria European Activities Core Strategies Opportunistic Strategies ^{71 172 356 472} 779 1,139 2013 2014 2015 2016 2017 2018 Investment Volume (€m) 10.5 23.6 37.6 57.0 102.1 121.2 2013 2014 2015 2016 2017 2018 Adj. EBITDA Value-add Business (€m) 180 396 76 292 IPO Sales Acq. 2018 6 Mergers & Acquisitions 5 `000 units 767 665 577 526 Number of locations 61% 64% 68% 71% 73% 76% ^{830 754 645 570 498 445} 2013 2014 2015 2016 2017 2018 EBITDA Operations margin (excl. Buwog & VP) Cost per unit Germany (€) 49% 50% 47% 42% 40% 43% 2.2 2.7 3.0 3.7 4.6 4.7 2013 2014 2015 2016 2017 2018 LTV (%) ICR

FY2018 Earnings Call

1 Historic range. 2 CAGR since 2013 fair value uplift through performance and investments (excluding yield compression).

Results Valuation New Construction Financing European Activities Guidance Appendix New Reporting Structure Q1 2019 onwards

• Starting with Q1 2019 we will be amending our external reporting to better reflect the internal management of the Company and the advanced evolution of the business.
• The 2018 results, based on the new reporting structure, were as follows:

2018	Rental	Value-add	Develop ment	Recurring Sales	Total
Revenues	1,894.2	1,462.2	323.1	356.1
Costs	-579.1	-1,341.0	-283.7	-277.0
Adj. EBITDA	1,315.1	121.2	39.4	79.1	1,554.8
Interest					-328.8
Taxes					-36.5
Consolidation					-57.5
Group FFO					1,132.0		~1,082
Group FFO (€/share)					2.18	rebased	~2.09

Minus ~€20m impact from 2018 disposals Minus ~€20m Customer First Program included in 2019 Minus ~€10m from normalizing 2018 sales margin to 30%

All Strategic Markets Show Upward Potential

Results Valuation		New Construction			Financing		European Activities		Guidance			Appendix
	Fair value1						In-place rent
Regional Market	(€m)	(€/sqm)	Residential units	Vacancy (%)	Total (p.a., €m)	Residential (p.a., €m)	Residential (€/sqm/ month)	Organic rent growth LTM (%)	Multiple (in-place rent)	Purchase power index (market data)2	Market rent increase forecast Valuation (% p.a.)	Average rent growth LTM (%) from Optimize Apartments
Berlin	6,536	2,370	41,943	1.4	220	209	6.62	4.1	29.7	80.4	1.8	48.6
Rhine Main Area (Frankfurt, Darmstadt, Wiesbaden)	3,950	2,199	27,673	1.3	173	168	8.05	4.4	22.8	105.0	1.8	40.9
Rhineland (Cologne, Düsseldorf, Bonn)	3,424	1,743	28,839	2.4	165	157	7.02	3.7	20.8	102.0	1.7	29.2
Southern Ruhr Area (Dortmund, Essen, Bochum)	3,354	1,240	43,498	3.2	189	183	5.93	5.5	17.8	88.5	1.5	31.5
Dresden	3,104	1,360	38,424	2.9	163	153	6.02	3.9	19.1	81.8	1.7	30.4
Hamburg	2,456	1,915	19,842	1.3	107	103	6.93	3.9	22.9	98.4	1.6	40.9
Munich	2,051	3,132	9,679	0.7	65	61	8.04	4.4	31.7	121.8	1.8	54.5
Stuttgart	1,936	2,166	13,840	1.7	83	80	7.78	3.2	23.3	104.5	1.8	40.4
Kiel	1,910	1,371	23,376	1.9	102	97	6.14	4.7	18.7	74.8	1.6	39.8
Hanover	1,623	1,549	16,322	2.8	81	78	6.49	4.9	20.1	90.1	1.7	37.6
Northern Ruhr Area (Duisburg, Gelsenkirchen)	1,567	956	26,277	3.1	110	106	5.63	4.7	14.3	81.7	1.2	25.5
Bremen	1,071	1,451	11,846	3.3	49	47	5.67	3.8	21.6	84.2	1.8	29.7
Leipzig	868	1,395	9,191	2.8	44	41	5.96	3.9	19.9	74.5	1.7	22.4
Westphalia (Münster, Osnabrück)	783	1,257	9,495	3.3	44	43	5.96	6.0	17.9	92.4	1.5	39.9
Freiburg	602	2,162	4,036	1.3	25	24	7.31	4.6	24.5	85.4	1.7	44.9
Other Strategic Locations	2,605	1,508	26,670	2.6	135	129	6.55	4.9	19.4	-	1.6	40.8
Total Strategic Locations Germany	37,839	1,689	350,951	2.3	1,754	1,679	6.56	4.4	21.6	-	1.7	36.2
Non-Strategic	790	1,250	7,500	4.8	43	37	6.16	0.9	18.5	-	1.7	20.7
Germany total	38,628	1,677	358,451	2.4	1,796	1,716	6.55	4.3	21.5	-	1.7	36.1
Austria	2,517	1,346	23,030	4.4	107	90	4.53	-	23.6	-	0.9	-
Sweden	1,738	1,563	14,288	1.2	119	110	9.11	-	14.6	-	2.0	-
Total Vonovia	42,883	1,648	395,769	2.4	2,022	1,915	6.52	4.4	21.2	-	1.6	n/a

Note: In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden, for example, includes certain ancillary costs. The table above shows the rental level unadjusted to the German definition. Data for Strategic Locations also includes Recurring Sales assets in those markets.

¹Fair value of the developed land excluding €1,356.8m, of which €405.1m undeveloped land and inheritable building rights granted, €302.5m assets under construction, €492.6m development and €156.6m other. ² Source: GfK (2018). Data refers to the specific cities indicated in the tables, weighted by the number of houeholds where applicable.

Dec. 31, 2018	Residential	In-place rent		Fair value
	units	(€/sqm/month)	(€m)	% of total	(€/qm)
Operate	74,775	6.83	8,594	20%	1,669
Invest	248,281	6.47	25,766	60%	1,678
Strategic	323,056	6.55	34,360	80%	1,676
Recurring Sales	29,563	6.70	3,670	9%	1,811
Non-core	5,832	6.04	598	1%	1,184
Vonovia Germany	358,451	6.55	38,628	90%	1,677
Vonovia Austria	23,030	4.53	2,517	6%	1,346
Vonovia Sweden	14,288	9.11	1,738	4%	1,563
Vonovia Total	395,769	6.52	42,883	100%	1,648

Note: In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden, for example, includes certain ancillary costs. The table above shows the rental level unadjusted to the German definition. ¹Fair value of the developed land excluding €1,356.8m, of which €405.1m undeveloped land and inheritable building rights granted, €302.5m assets under construction, €492.6m development and €156.6m other.

Conservative	Valuation	Levels
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

In-place values are still way below replacement values, in spite of accelerating valuation growth in recent years.

Note: VNA 2010 – 2014 refers to Deutsche Annington Portfolio at the time; construction costs excluding land. The land value refers to the share of total fair value allocated to land.

Vonovia location

High-influx cities ("Schwarmstädte"). For more information: http://investoren.vonovia.de/websites/vonovia/English/4050/financial-reports-_-presentations.html

€700m of Investments Fully Completed in 2018 for an Incremental Rent of ~€50m in 2018

Measurement for Success

Yield on cost is a substantial element in the overall return on investment. Especially more complex investments such as comprehensive upgrade building modernizations, new constructions and neighborhood developments, however, which are more long-term in nature, are measured based on an IRR. Our target IRR for the investment program is between 9-10%. For the 2015 and 2016 investment programs the IRR was 10.3% and 10.1%, respectively.

Acquisitions – Opportunistic but Disciplined

FY2018 Earnings Call

Acquisition	Track Record
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

				Fair Value (€/sqm)			In-place rent (€/sqm)
Year	Deal	Residential units #	TOP Locations	@ Acquisition	Dec. 31, 2018	∆	@ Acquisition	Dec. 31, 2018	∆
2014	DEWAG	11,300	Berlin, Hamburg, Cologne, Frankfurt/Main	1,344	2,227	66%	6.76	7.88	17%
	VITUS	20,500	Bremen, Kiel	807	1,383	71%	5.06	5.81	15%
	GAGFAH	144,600	Dresden, Berlin, Hamburg	889	1,602	80%	5.40	6.35	17%
2015	FRANCONIA	4,100	Berlin, Dresden	1,044	1,859	78%	5.82	6.70	15%
	SÜDEWO	19,400	Stuttgart, Karlsruhe, Mannheim, Ulm	1,380	1,993	44%	6.83	7.45	9%
2016	GRAINGER	2,400	Munich, Mannheim	1,501	2,202	47%	7.09	7.95	12%
	CONWERT (Germany & Austria)	23,400	Berlin, Leipzig, Potsdam, Vienna	1,353	1,826	35%	5.88	6.34	8%
2017	thereof Germany	21,200	Berlin, Leipzig, Potsdam	1,218	1,710	40%	5.86	6.29	7%
	thereof Austria	2,200	Vienna	1,986	2,436	23%	6.11	6.69	10%
	PROIMMO	1,000	Hanover	1,617	1,671	3%	6.63	6.77	2%
	BUWOG (Germany & Austria)	48,300	Berlin, Lübeck, Vienna, Villach	1,244	1,354	9%	5.10	5.25	3%
2018	thereof Germany	27,000	Berlin, Lübeck, Kiel	1,330	1,530	15%	5.96	6.19	4%
	thereof Austria	21,300	Vienna, Villach, Graz	1,157	1,190	3%	4.21	4.34	3%
	VICTORIA PARK (Sweden)	14,000	Stockholm, Malmö, Gothenburg	1,462	1,563	7%	8.83	9.11	3%
	Total	289,000

Note: Excluding smaller tactical acquisitions

IFRS P&L
Results Valuation	New Construction	Financing	European Activities	Guidance	Appendix
€m (unless indicated otherwise)			2018	2017	Delta
Income from property letting			2,647.9	2,344.0	13.0%
Other income from property management			60.3	47.6	26.7%
Income from property management			2,708.2	2,391.6	13.2%
Income from disposal of properties			1,097.5	1,206.4	-9.0%
Carrying amount of properties sold			-933.7	-1,136,0	-17.8%
Revaluation of assets held for sale			68.5	81.1	-15.5%
Profit on disposal of properties			232.3	151.5	53.3%
Income from the disposal of properties (Development)			225.1	-
Cost of sold properties			-181.8	-
Profit on the disposal of properties (Development)			43.3	-
Net income from fair value adjustments of investment properties			3,517.9	3,434.1	2.4%
Capitalized internal expenses			608.2	458.1	32.8%
Cost of materials			-1,381,0	-1,176.4	17.4%
Personnel expenses			-513.1	-416,0	23.3%
Depreciation and amortization			-737.9	-372.2	98.2%
Other operating income			132.2	110.7	19.4%
Impairment losses form financial assets			-21.6	-23,0	-6.1%
Profit/loss from derecognition	of financial assets valued at amortized cost		1.0	2.0	-50.0%
Other operating expenses			-300.0	-246.8	21.6%
Earnings from at-equity shareholdings			1.8	0.0
Financial income			32.1	46.8	-31.4%
Financial expenses			-449.1	-353,0	27.2%
Earnings before tax			3,874.3	4,007.4	-3.3%
Income taxes			-1,471.5	-1,440.5	2.2%
Profit for the period			2,402.8	2,566.9	-6.4%
Attributable to:
Vonovia's shareholders			2,266.5	2,410.7	-6.0%
Vonovia's hybrid capital investors			40.0	40.0	0.0%
Non-controlling interests			96.3	116.2	-17.1%
Earnings per share (basic and diluted) in €			4.48	5.06	-11.5%

IFRS Balance Sheet (1/2 – Total Assets)

€m	Dec 31, 2018	Dec 31, 2017	Delta
Assets
Intangible assets	2,943.2	2,637.1	11.6%
Property, plant and equipment	250.4	177.6	41.0%
Investment properties	43,490.9	33,182.8	31.1%
Financial assets	888.8	698,0	27.3%
Other assets	12.2	13.8	-11.6%
Deferred tax assets	54.1	10.3	>100%
Total non-current assets	47,639.6	36,719.6	29.7%
Inventories	8.8	6.2	41.9%
Trade receivables	493.1	234.9	>100%
Financial assets	0.8	0.5	60.0%
Other assets	114.4	98.4	16.3%
Income tax receivables	170.2	47.9	>100%
Cash and cash equivalents	547.7	266.2	>100%
Real estate inventories	307.1	-

Results Valuation New Construction Financing European Activities Guidance Appendix

Total current assets 1,748.0 796.7 >100%

Total assets 49,387.6 37,516.3 31.6%

IFRS Balance Sheet (2/2 – Total Equity and Liabilities)

Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix
€m				Dec 31, 2018	Dec 31, 2017	Delta
Equity and liabilities
Subscribed capital				518.1	485.1	6.8%
Capital reserves				7,183.4	5,966.3	20.4%
Retained earnings				9,942.0	8,471.6	17.4%
Other reserves				236.7	157.8	50,0%
Total equity attributable to Vonovia's		shareholders		17,880.2	15,080.8	18.6%
Equity attributable to hybrid capital investors				1,001.6	1,001.6	0.0%
Total equity attributable to Vonovia's		shareholders and hybrid capital investors		18,881.8	16,082.4	17.4%
Non-controlling interests				782.3	608.8	28.5%
Total equity				19,664.1	16,691.2	17.8%
Provisions				616.7	607.2	1.6%
Trade payables				4.4	2.4	83.3%
Non derivative financial liabilities				17,437.5	12,459.4	40.0%
Derivatives				69.8	8.7	>100%
Liabilities from finance leases				94.7	94.7	0.0%
Liabilities to non-controlling interests				24.2	24.9	-2.8%
Financial liabilities from tenant financing				56.1	-
Other liabilities				42.5	65.3	-34.9%
Deferred tax liabilities				7,231.9	5,322.6	35.9%
Total non-current liabilities				25,577.8	18,585.2	37.6%
Provisions				450.5	376.5	19.7%
Trade payables				239.1	130.7	82.9%
Non derivative financial liabilities				2,698.5	1,601.1	68.5%
Derivatives				41.4	4.4	>100%
Liabilities from finance leases				4.7	4.6	2.2%
Liabilities to non-controlling interests				9.0	9.0	0.0%
Financial liabilities from	tenant financing			104.7	7.7	>100%
Other liabilities				597.8	105.9	>100%
Total current liabilities				4,145.7	2,239.9	85.1%
Total liabilities				29,723.5	20,825.1	42.7%
Total equity and liabilities				49,387.6	37,516.3	31.6%

Results Valuation New Construction Financing European Activities Guidance Appendix Covenants and KPIs (December 31, 2018)

Bond KPIs	Covenant	Level	Dec. 31, 2018
	LTV	<60%	41%
	Total Debt / Total Assets
	Secured LTV	<45%	12%
	Secured Debt / Total Assets
	ICR	>1.80x	4.7x
	Last 12M EBITDA / Last 12M Interest Expense Unencumbered Assets
			208%
	Unencumbered Assets / Unsecured Debt	>125%

Rating KPIs	Covenant	Level (BBB+)
	Debt to Capital Total Debt / Total Equity + Total Debt	<60%
	ICR Last 12M EBITDA / Last 12M Interest Expense	>1.80x

Bonds / Rating

Bond 004 (USD-Bond)	10 years 5.000%	US25155FAB22	USD 250m	98.993%	4.580%1	02 Oct 2023	BBB+
Bond 005 (EMTN)	8 years 3.625%	DE000A1HRVD5	€ 500m	99.843%	3.625%	08 Oct 2021	BBB+
Bond 006 (Hybrid)	60 years 4.625%	XS1028959671	€ 700m	99.782%	4.625%	08 Apr 2074	BBB
Bond 007 (EMTN)	8 years 2.125%	DE000A1ZLUN1	€ 500m	99.412%	2.125%	09 July 2022	BBB+
Bond 008 (Hybrid)	perpetual 4%	XS1117300837	€ 1,000m	100.000%	4.000%	perpetual	BBB
Bond 009A (EMTN)	5 years 0.875%	DE000A1ZY971	€ 500m	99.263%	0.875%	30 Mar 2020	BBB+
Bond 009B (EMTN)	10 years 1.500%	DE000A1ZY989	€ 500m	98.455%	1.5000%	31 Mar 2025	BBB+
Bond 010B (EMTN)	5 years 1.625%	DE000A18V138	€ 1,250m	99.852%	1.625%	15 Dec 2020	BBB+
Bond 010C (EMTN)	8 years 2.250%	DE000A18V146	€ 1,000m	99.085%	2.2500%	15 Dec 2023	BBB+
Bond 011A (EMTN)	6 years 0.875%	DE000A182VS4	€ 500m	99.530%	0.875%	10 Jun 2022	BBB+
Bond 011B (EMTN)	10 years 1.500%	DE000A182VT2	€ 500m	99.165%	1.5000%	10 Jun 2026	BBB+
Bond 013 (EMTN)	8 years 1.250%	DE000A189ZX0	€ 1,000m	99.037%	1.250%	06 Dec 2024	BBB+
Bond 014A (EMTN)	5 years 0.750%	DE000A19B8D4	€ 500m	99.863%	0.750%	25 Jan 2022	BBB+
Bond 014B (EMTN)	10 years 1.750%	DE000A19B8E2	€ 500m	99.266%	1.750%	25 Jan 2027	BBB+
Bond 015 (EMTN)	8 years 1.125%	DE000A19NS93	€ 500m	99.386%	1.125%	08 Sep 2025	BBB+
Bond 016 (EMTN)	2 years 3M EURIBOR+0.350%	DE000A19SE11	€ 500m	100.448%	3M EURIBOR+0.350%	20 Nov 2019	BBB+
Bond 017A (EMTN)	6 years 0.750%	DE000A19UR61	€ 500m	99.330%	0.750%	15 Jan 2024	BBB+
Bond 017B (EMTN)	10 years 1.500%	DE000A19UR79	€ 500m	99.439%	1.500%	14 Jan 2028	BBB+
Bond 018A (EMTN)	4.75 years 3M EURIBOR+0.450%	DE000A19X793	€ 600m	100.000%	0.793% hedged	22 Dec 2022	BBB+
Bond 018B (EMTN)	8 years 1.500%	DE000A19X8A4	€ 500m	99.188%	1.500%	22 Mar 2026	BBB+
Bond 018C (EMTN)	12 years 2.125%	DE000A19X8B2	€ 500m	98.967%	2.125%	22 Mar 2030	BBB+
Bond 018D (EMTN)	20 years 2.750%	DE000A19X8C0	€ 500m	97.896%	2.750%	22 Mar 2038	BBB+
Bond 019 (EMTN)	5 years 0.875%	DE000A192ZH7	€ 500m	99.437%	0.875%	03 Jul 2023	BBB+
Bond 020 (EMTN)	6.5 years 1.800%	DE000A2RWZZ6	€ 500m	99.836%	1.800%	29 Jun 2025	BBB+
1 EUR-equivalent Coupon

Results Valuation New Construction Financing European Activities Guidance Appendix German Residential – Safe Harbor and Low Risk

Sources: Federal Statistics Office, GdW (German Association of Professional Homeowners), REIS, BofA Merrill Lynch Global Research, OECD. Note: Due to lack of q-o-q US rent growth data, the annual rent growth for a year is assumed to also be the q-o-q rent growth of that year.

German Residential – Landlords Benefit from Structural Imbalance between Supply and Demand

Results Valuation New Construction Financing European Activities Guidance Appendix

Sources: Federal Statistics Office, IW Köln, GdW (German Association of Professional Homeowners)

German Residential – Favorable Fundamentals

Sources: German Federal Statistics Office, GdW (German Association of Professional Homeowners). 2035(E) household numbers are based on trend scenario of the German Federal Statistics Office.

European Residential Markets – Favorable Fundamentals

Sources: United Nations, JLL Research, European Commission, Federal Statistics Office, Eurostat

Liquid Large-cap Stock

VNA share price performance since IPO vs. DAX and EPRA Europe Index

FY2018 Earnings Call

FY2018 Earnings Call

• Seed portfolios of today's Vonovia have origin in public housing provided by government, large employers and similar landlords with a view towards offering affordable housing.
• At beginning of last decade, private equity invested in German residential on a large scale including into what is Vonovia today (mainly Deutsche Annington and Gagfah then).
• IPO in 2013.

Vonovia History

Final exit of private equity in 2014.

Reconciliation of Shares Outstanding

Results Valuation	New Construction	Financing European Activities Guidance Appendix
Date	NOSH (million)	Comment
December 31, 2016	466.0
March 31, 2017	468.8	conwert acquisition
June 30, 2017	476.5	Scrip dividend
September 30, 2017	485.1	Gagfah cross-border merger
December 31, 2017	485.1
March 31, 2018	485.1
June 30, 2018	518.1	€1bn ABB in 05/2018; scrip dividend
September 30, 2018	518.1
December 31, 2018	518.1

The number of outstanding shares is always available at http://investoren.vonovia.de/websites/vonovia/English/2010/key-share-information.html

Total remuneration cap

Share Holding Provision

• Mandatory share ownership

• 100% of annual fixed remuneration (excl. pension) (accumulation on a pro rata basis during first 4 years)

• Bonus cap at predetermined amount

• Cash payout
• FFO1 is key figure in the industry for managing the sustained operational earnings power of our business.
• Adj. NAV/share as standard figure for the value of our property assets (calculation according to EPRA best practice standards, after corrections for goodwill).
• EBITDA Sales: Measure of success of our sales activities.
• Personal targets related to individual department responsibilities or overlapping targets (e.g. integration projects).

Rationale

• LTIP aims to ensure that remuneration structure focuses on sustainable corporate development.
• Relative TSR is from an investor perspective a well-established and accepted performance measure, focusing on share return, relative to a selected peer group. Hence, it is adequate for comparison with relevant competitors.
• Customer Satisfaction Index (CSI): Based on customer surveys and reflects how our services are perceived and accepted by our customers.
• Shareholder alignment safeguarded by (i) relative performance targets (FFO/share and EPRA NAV/share) as well as (ii) calculation method which takes actual share price performance into account.

Disclaimer
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

This presentation has been specifically prepared by Vonovia SE and/or its affiliates (together, "Vonovia") for internal use. Consequently, it may not be sufficient or appropriate for the purpose for which a third party might use it.

This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to any other person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein.

This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of Vonovia ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from Vonovia's current business plan or from public sources which have not been independently verified or assessed by Vonovia and which may or may not prove to be correct. Any forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date the presentation is provided to the recipient. It is up to the recipient of this presentation to make its own assessment of the validity of any forward-looking statements and assumptions and no liability is accepted by Vonovia in respect of the achievement of such forward-looking statements and assumptions.

Vonovia accepts no liability whatsoever to the extent permitted by applicable law for any direct, indirect or consequential loss or penalty arising from any use of this presentation, its contents or preparation or otherwise in connection with it.

No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient's purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof.

Vonovia has no obligation whatsoever to update or revise any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof.

This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.

This presentation is neither an advertisement nor a prospectus and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by the attendees/recipients in connection with, the purchase of or investment in any securities of the Company. This presentation is selective in nature and does not purport to contain all information that may be required to evaluate the Company and/or its securities. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or on its completeness, accuracy or fairness.

This presentation is not directed to or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

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.

For Your	Notes
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix

For Your Notes
Results	Valuation	New Construction	Financing	European Activities	Guidance	Appendix