Vonovia SE

Investor Presentation • Jun 16, 2015

Deutsche Annington Immobilien SE

Capital Markets Day "Meet the management" Berlin, June 15-16, 2015

This presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Deutsche Annington Immobilien SE ("DA") or any of its subsidiaries nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of DA or any of its subsidiaries, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of DA ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from DA's current business plan or from public sources which have not been independently verified or assessed by DA 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 DA in respect of the achievement of such forward-looking statements and assumptions.

DA 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.

DA 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.

Tables and diagrams may include rounding effects.

Capital Markets Day 2015 – Agenda Day 2

09:00 –	CEO Presentation
10:00	+ Q&A

• 10.15 12:30 Round Table Meetings
• 13:30 13:30 Lunch
• 13:30 15:45 Round Table Meetings

Extension:

Klaus Freiberg (COO), Konstantina Kanellopoulos (Head of Product Management)

Process & IT Management:

Thomas Zinnöcker (Deputy CEO), Dr. Karsten Rech (Head of Process & IT Management)

Financing:

Dr. A. Stefan Kirsten (CFO), Lars Schnidrig (Head of Finance & Treasury)

Portfolio Management & Valuation:

Gerald Klinck (CCO), Inger Giwer-Gaul (Head of Portfolio Controlling)

Four engine blocks and a turbo

in German residential real estate

• Engine blocks 1 & 2 ensure a decreasing cost basis and keep the organisation lean.
• Engine blocks 3 & 4 create sustainable growth and power the portfolio value generation. We are changing the product.
• Acquisitions accelerate all four engine blocks but are not a prerequisite for a well-running machine or the growth of our business.

The four main blocks provide for a smoothly-running, powerful engine that delivers sustainable long-term growth.

Selective acquisitions provide a turbo to further boost the engine's performance.

Building on a strong real estate platform, our Extension Strategy continuously creates value with innovative businesses

"Re-thinking" the supply chain: direct sourcing of windows from a CEE/SEE sub-manufacturer

Direct sourcing of windows		Insights
 Deconstruction of the current process		Current Process	Future Process
 Understanding the supply market and production industry	1.	Measurement (external)	Measurement (internal)
 Establishment of direct sourcing channels
 Increase inhouse expertise	2.	Purchasing from German Wholesaler	Purchasing from CEE/SEE sub-manufacturer
	3.	Installation	Installation
Status & potential		(external)	(internal)
 Supplier identified in CEE/SEE - quality certificated by external institute
 Pilot project in Hamburg successfully completed, operational roll-out in 2015 started
 Current window investment volume: € 40m
 40% cost saving potential compared to market price identified

Roof conversion / extension at competitive cost offers win-win situation for our tenants and us

Project example

• Frankfurt: Construction of approx. 1,100 m² additional rental space resp. 20 residential units in compliance with the EnEV2009
• Usage of pre-fabricated building elements
• Additional value-add through thermal insulation of the façade

Status

• Pre-fabricated building technique tested and implemented
• In 2015: 10 roof conversion projects planned
• Cost for roof conversion / extension significantly lower than new construction cost
• New letting of extended units allows a rent in line with market rent for new buildings

Insights

• Standardized conversion or extension with prefabricated elements
• Using pre-fabricated building elements
• allows for learning curve and improvement of cost
• Significant lower disturbance for tenants (reduced fluctuation during building phase)

Process and IT management is an enabler for service extension and fast integration of acquired portfolios

PRODUCTIVITY

Value drivers for sustainable long-term growth

Focused & action-driven portfolio management

Superior internal valuation capacity

• Proactive portfolio optimization with a clear-cut view on all local markets and properties guarantees best possible strategy for every single asset
• Modernizations as attractive value drivers (7% unlevered yield)
• Targeted sales and acquisitions for continuous portfolio optimization
• Experienced internal valuation team
• State-of-the-art tools for asset-by-asset valuation of DA's 12k valuation units
• Profound in-house knowledge of the different local markets

Additional potential from yield compression in secondary locations

• 22 prime locations saw yield compression in 2014
• Comprehensive data available to DA supports yield compression in 25 secondary locations that are currently being discussed with CBRE

Our German wide portfolio offers potential for yield compression at primary as well as secondary locations

• Fair value growth of 3.7% p. a. since 2010 based on a DA's diversified portfolio spread across Germany
• Sustainable value growth even beyond hot spots gained
• External appraiser's knowledge is typically focused on prime locations and large portfolio transactions
• Rising prices in prime locations expands investor demand to secondary locations
• 25 secondary locations (35% of DA's assets) in discussion with external appraiser for further yield compression in 2015
• Appreciation of GAGFAH portfolio expected as a result of applying the same assumptions as for the DA portfolio

Innovative financing strategy implemented

First German real estate company ..

• .. with an investment grade rating (S&P: BBB) in July 2013 (subsequently upgraded toBBB+)
• .. issuing investment grade rated unsecured corporate bonds in July 2013
• .. issuing of USD 1.0bn unsecured corporate bonds in the US in October 2013. Largest issuance of an European real estate company in the US.

First European residentialreal estate company ..

• .. seeting up an EMTN programin October 2013
• .. issuing an investment grade rated Hybrid bond with 100% equity treatment under IFRS in Dec 2014

Still unique ..

• .. benchmark front- middle- and backoffice structure
• .. M&A funding capacity (e.g. €6.5 bln single underwritten term loan)

Innovative and forward looking financing structure with a variety of tested refinancing sources including secured loans, unsecured corporate bonds as well as CMBS structures

Full pipeline of opportunities DAIG with strong track following disciplined approach

Disciplined approach to buy high quality portfolios

• All portfolios have strategic fit for Deutsche Annington
• But our valuation consistent with our acquisition criteria ensures disciplined pricing
• Higher competitor pricing reflects higher market liquidity& lack of supply of suitable portfolios >1000 units

Acquisitions further improve portfolio quality

• Our extension business provides a full pipeline of innovative projects that deliver sustainable value creation for all stakeholders.
• Our innovative process and IT management is an important and unique enabler for our service extension and the fast integration of acquired portfolios.
• We have a variety of value drivers for long-term sustainable growth.
• Our innovative financing strategy provides us with a strong financial structure and a high degree of flexibility.
• We remain dedicated to external growth but will continue to follow a highly disciplined approach.

Slides for Round Table Meetings:

• Extension (pages 18-23)
• Process and IT management (pages 25-29)
• Financing (pages 31-37)
• Portfolio Management & Valuation (pages 39-44)

Using industry proven methods and materials in real estate: a balcony is "just" a high bay racking Decomposition of current elements Simplification of planning and sourcing Reduced effort for static calculations Usage of industry standard materials Status & potential Pilot project as practical proof of concept currently in preparation Estimated cost saving potential: 30% of total cost of balcony Insights High bay racking with additional beams Modular design using standardisedcomponents Partly screwless connection of the components Material: Hot dip galvanized steel Intelligent Sourcing

Our bathroom program is highly accepted with our customers and provides above target margins

Bathroom mod.

Bathroom modernization on customer request

• Bathroom product meets strong customer demand
• Highly positive customer feedback
• Customers mostly order high standard products ("comfort+") – learnings concerning customers' demands and preferences can also be used to improve flat modernizations

Status & potential

• More than 350 projects executed in 2014
• Planned investment volume in 2015 more than doubled (y-t-d "lead" pipeline: already >700 projects)
• Annual potential up to € 10m investment volume with an attractive above average yield (>10%)

Insights

• Fixed price agreement with TGS allows for an easy and reliable service offering to our customers
• In 2015, a second roadshow container has been successfully set in place to increase sales capacities

Adapting successful service offerings for new products, e.g. built-in kitchens on customer demand

Kitchen

Built-in kitchens

• Response to market demand "next step" after the bathroom project
• Expansion of the investment "product catalogue"
• Decrease of hurdles for new customers and attractive offer for current tenants

Status & potential

• Two parallel programs:
• On request of current tenants
• As part of apartment modernisation during new letting process
• Start in 2015 with a planned volume of 500 kitchens (€ 1.5m)
• Annual investment potential: € 5-10m with an attractive above average yield (>10%)

Insights

Creation of additional value by:

• Standardisation of products and processes
• Optimised procurement / order pooling
• Insourcing of services by our craftsmen organisation

Sub metering

Smart sub metering – a promising pilot project

Smart Sub Metering

• Roll-out of real-time sub metering business planned
• Creation of a win-win situation for tenants and Deutsche Annington (lower cost, better service, etc.)

Status & potential

• First pilot in 1,000 flats in Bergkamen with 6,000 meters and 25 modems in place and running successfully
• Business case based on pilot experiences very promising, turnover potential up to € 14m
• Typical metering industry margins applicable

Insights

• Measuring of consumption of Water and Heat (Sub-Metering)
• 'Smart': Utilize intelligent online Metering technology
• Evaluate value levers from insourcing

AAL

Technical tools to support tenants in everyday life

Ambient assisted living

• Ambient assisted living convertible without huge building effort
• Small and clever solutions, can increase convenience and safety for elder tenants considerably

Status

• Broad market review
• Pilot flat and "first user in place
• Scanning the market for potential partners

Insights

Safety:

"warning light: can I leave the apartment? Are the windows closed? Is the stove turned off?

Emergency:

Mobile emergency clock – without stigmatisation. Emergency button in bathroom.

Our Extension Pool provides additional ideas for future service offerings

• Standard front door key system extended by electronical closing system: "hands-free" door-opening
• Optional usage of "kiwi" by tenants for a small fee
• Service Provider (Alba, Post, DHL, etc.) get access too

• Short-dated pilot implementation in Berlin for 1.000 front doors

• DHL developed a mailbox for parcels with self-service collection, DA is exclusive pilot project partner

• First pilots show great customer demand
• Increase of tenant satisfaction und creation of additional rental yield opportunities

Rollout in 2015 at planning stage

• Boxes for wheeled walker in front of the house can be requested by tenants
• Enables protected placement and avoids squeeze in the hallway

Slides for Round Table Meetings:

Extension (pages 18-23)

Process and IT management (pages 25-29)

• Financing (pages 31-37)
• Portfolio Management & Valuation (pages 39-44)

The letting process serves as example to explain process improvement through technology

Traditional process

The Deutsche Annington optimized letting process – based on SAP and Digital-Pen

The Deutsche Annington optimized letting process – from 2015 based on SAP and iPad

Hub-and-spoke strategy for the letting process including the Caretaker and the Craftmen functions

Extension of hub-and-spoke strategy: Standardized scalable platform for all field workers

Slides for Round Table Meetings:

• Extension (pages 18-23)
• Process and IT management (pages 25-29)
• Financing (pages 31-37)
• Portfolio Management & Valuation (pages 39-44)

Executionof best-in-class financial strategy

Highly experience team with different background (Rating Agency, Corporates, Investment Bank, Hedge Fund)

Benchmark Front-, Middle und Backoffice

Best-in-class Treasury Management System (SAP)

• USP Success factor
• All financial strategic decisionhave been delivered over recent years, from restructuring, rein
• All refinancings at least six month prior to maturity closed
• Top three in European bond issuer within twelve months with performing instruments
• First in real estate sector
• Risk Controlling
• Clear responsibilities and processes
• Scalable platform (process & IT)
• Capability of standardised loan integration

Superior (Re)financing

DAI has constantly tackled maturities at least 12 months before, which prevents blackmailing and allows creation of competition financing offers to reduce capital costs

Maturity Management since 2013

GRAND A&E (1) (€3.8bn)	X
Term Loan 2013 (€2.5bn)	X
Term Loan 2014 (€475m)	X
WOGE 5 (€264m)	X
Getready Bridge (€6.5bn)	X
	(-) 12 Months	(-) 9 Months	(-) 6 Months	(-) 3 Months	Maturity

(1) Repaid 4.5 yrs pre maturity

Best in class financing strategy with comprehensive toolkit as a basis for operational excellence and qualifies us for several acquisition even in parallel, if they arise

Maturity profile offers further headroom for improvement

Diversification of financial sources

KPIs as of Mar. 31 , 2015
	Current	Target
LTV	56.3%	<50%
Unencumbered assets in %	32%	≥ 50%
Global ICR	3.0x	Ongoing
Financing cost	2.9%	optimisation with most economic funding

	Front Office	Middle Office	Back Office
Cash and Liquidity Management	Finance/Capital Markets and Funding	Risk Controlling	Administration
• Cash Management • Account clearing • Payments • Handling of cheques • Liquidity forecast • Actual data generation • Bank fees control • Bank reporting	• Leader of deal-teams • Negotiations • Structuring deals • All external contacts • Initiation of refinancing process • Coordination of information flows • Negotiation and structuring of internal information • Creation of presentations for teasers, negotiations and committees etc. • Creditorrelations	• Calculation of market values • Transaction evaluation • Hedge effectiveness tests • Risk management • Covenantreporting • IPDs	• Administration of loans • Administration of guarantees • Release process for sales • Support for re financing process (land register, notaries etc.) • Administration of securities

Slides for Round Table Meetings:

• Extension (pages 18-23)
• Process and IT management (pages 25-29)
• Financing (pages 31-37)
• Portfolio Management & Valuation (pages 39-44)

State-of-the-art property valuation at Deutsche Annington

Valuation level of Deutsche Annington in line with listed competitors

Portfolio and valuation		key figures		Comments
Key figures	DA1	2014 Deutsche Wohnen	LEG	• Fair value growth of 3.7% p. a. since 2010 based on a diversified portfolio spread across Germany:
# flats	352.000	147.000	107.000	 75% of DA's portfolio is located in 70 cities with >100k inhabitants
Residential rent (€/sqm)	5,51	5,69	5,07	• DA's rental performance and values in common
Vacancy (%)	3,4	2,2	2,8	locations similar to DW and better than LEG
Fair value (€/sqm)	944	1.062	827	• Modernisation potential in GAGFAH portfolio gives
Multiplier	14,5	15,5	13,9	chances for further value enhancement

DA vs. DW at common locations					DA vs. LEG at common locations
Location	(€/sqm)	Fair value	Multiplier		Residential rent (€/sqm)			Location	Fair value (€/sqm)		Multiplier		Residential rent (€/sqm)
	DA	DW	DA	DW	DA	DW			DA	LEG	DA	LEG	DA	LEG
Berlin²	1.084	1.101	16,0	16,1	5,62	5,67		Düsseldorf	1.426	1.248	16,4	17,1	7,06	6,06
Rhine-Main Area	1.424	1.405	16,7	16,5	7,09	7,18		Dortmund	755	746	12,9	13,5	4,91	4,71
Rhineland	1.117	983	15,3	14,1	6,10	5,75		Duisburg	708	697	11,9	12,2	5,06	4,92

¹ DA pro forma incl. GAGFAH and Franconia, valuation figuresbased on indicative revaluation withDA standard assumptions

² Berlin and commuter belt

Extension of yield compression to secondary locations opens the chance for further enhancement of DA fair values

Yield compression in 22 prime locations in 2014

• Together with CBRE, 22 locations in Deutsche Annington portfolio were identified with price increases significantly above rent development

• Characteristics:

• Population > 50k Development market rent >1.6%

• Market vacancy < 2% Sufficient quantity (MFH omparables)

• Comprise 35% of DA portfolio in terms of value
• Discount of 0.25% on CapRates resulted in add'l 5% uplift resp. €260m

25 secondary locations with further uplift potential in 2015

• Rising prices in prime locations shifts investor demand to secondary locations
• 25 DA locations comprising 35% of DA's assets in discussion with CBRE for further yield compression in 2015
• Condos comparables are rising, but only few reliable market data for MFH available
• Possible effect on fair values growth slightly below yield compression at prime locations

Appreciation of GAGFAH portfolio by CBRE revaluation expected

• Ongoing revaluation of GAGFAH portfolio with equal assumptions as DA valuation
• Expected uplift of low triple-digit EUR million will reduce goodwill

SÜDEWO Group enhances Deutsche Annington's exposure to one of the healthiest regions in Germany

• Baden-Württemberg is one of the strongest and most diverse economic areas in Germany
• Economic growth rate 2014 of 2.4% higher than national average of 1.6%; GDP per capita 40% higher than EU average
• Driving force in Germany's export-oriented economy with highest share of global businesses nation-wide (3.8 per 100k inhabitants¹ )
• Disposable income of ~€22,125 vs. Germany average of €20,478 (+8%)
• Most positive household growth of 9% expected between 2012 and 2035 vs. German average of 3%
• Global "Mittelstand champions" employ approx. 60% of the workforce in Baden-

Württemberg …and a strong and productive force in Germany²

• Strong purchasing power and high standard of living allow for attractive modernisation potential
• Significantly enhances exposure to Southern Germany, a strong region with limited acquisition opportunities

¹ Statistisches Bundesamt, 2015; ² Statistisches Landesamt Baden-Württemberg; ³ Gf K Kaufkraft Deutschland 2015; ⁴Bundesanstalt für Arbeit; ⁵Statistische Ämter des Landes und der Länder

0% 2% 4% 6% 8%

Footprint in key growth areas in Southern Germany materially increased

Deutsche Annington more than doubles its exposure to a very strong part of Germany⁵ where it was under-represented

¹Remaining 9% of units (1.8k) envisaged for privatisation; ² SÜDEWO Group figures as of Dec 31, 2014, Deutsche Annington as of March 31, 2015; ³ Deutsche Annington valuation multiple; SÜDEWO Group transaction mulitiple; ⁴Initial EBITDA margin (i.e. before synergies); ⁵ Refers to Baden-Württemberg

¹Percentages may not always add up to exactly 100% due to rounding; ² As of March 31, 2015, all locations and assets of the Gagfah portfolio that are strategically relevant are included in the "Operate"

Strategic Portfolio

IR Contact & Financial Calendar

Contact	Financial Calendar	2015
Investor Relations	March 5	Full year results 2014
Deutsche Annington Immobilien SE	April 30	Annual General Meeting
Philippstraße 3	June 01	Interim report Q1 2015
44803 Bochum, Germany	June 15-16	Capital Markets Day
Tel.: +49 234 314 1609	Aug 19	Interim report H1 2015
investorrelations@deutsche-annington.com	Nov 3	Interim report Q3 2015
http://www.deutsche-annington.com