Vonovia SE

Investor Presentation • Jun 5, 2014

Deutsche Annington Immobilien SE

Kempen & Co European Property Seminar Amsterdam, 5 June 2014

Rolf Buch, CEO Dr. A. Stefan Kirsten, CFO

We are well positioned in a favourable market environment

Source: Federal Statistical Office, Euroconstruct, ifo

Favourable household development in Germany (m)

Source: BBSR Wohnungsmarktprognose 2009-2025. Projections based on 2009 numbers

Source: Schader Stiftung (Germany), Clameur (France), Association of Residential Letting Agents (UK)

84% of DA's portfolio in states with strongest rental growth

Deutsche Annington at a glance (data as per 31.12.2013)

• Top 5 European real estate company¹ and the largest German residential firm²
• 175k residential units well spread across Germany
• 97% of portfolio by fair value located in Western Germany and Berlin
• More than 2.900 employees incl. own craftsmen organisation with 1200 FTE
• Standardised processes and industrialised platform
• Best-in-class financing structure in the German real estate sector
• Dedicated portfolio strategy and investment program focused on value creation

1By market cap; ² In listed German residential sector

Steady improvement of all KPIs

1) Based on average number of units over the period

Steady improvement of all KPIs

FFO 1 ex. maintenance (€m)

¹⁾ Based on number of shares as of 31 Dec 2012 (200,0 m) and 31 Dec 2013 (224,2 m)

Successful year 2013 - all KPIs meet or exceed guidance

FY 2013 results versus guidance

KPI	Guidance	Actual
Rental growth	1.8 – 2.0%	1.9%
Modernisation volume (on 2012 level)	€ 66m	€ 71m
Planned disposals (privatisation)	>2,000 units	2,576 units
FFO 1	€ 210 – 220m	€ 224m
Dividend policy	~70% of FFO 1	~70% of FFO 1
Implied dividend / share	€ 0.68 – 0.69	€ 0.70

KPI	Guidance 2014 (excl. any acquisitions)
Rental growth	2.3 – 2.6%
Modernisation program 2014	€ 150m
Planned disposals (privatisation)	~1,800 units
FFO 1	€ 250 – 265m
Dividend policy	~70% of FFO 1

		Reputation & customer satisfaction
al on Traditi	1 Property management strategy	 Optimise EBITDA by increasing rent, reducing vacancy, reducing operating cost, adequate maintenance	5 Acquisition
	2 Financing strategy	 Maintain adequate liquidity at any time while optimising financing costs based on target maturity profile and rating	strategy  Increase FFO/share
	3 Portfolio management strategy	 Optimise portfolio by investment program, sales and tactical acquisitions	without dilution of NAV/share  Increase critical mass to further support operational strategies
ve ovati n n I	4 Extension strategy	 Increase customer satisfaction/value by offering value-add services

Portfolio review provides higher modernisation potential and less Non Core assets

1) Note: Percentage figures denote share of total fair value, as of 31 March 2013 and 31 December 2013

© Deutsche Annington Immobilien SE Kempen & Co European Property Seminar, Amsterdam, 5 June 2014 9

Continued high levels of maintenance guarantee the sustainability of our portfolio's rental growth capacity

Property management strategy

SG&A savings of more than € 20m lead to significant cost/unit improvement

Property management strategy

Organisational improvements in 2013 …

• Integration of Asset and Property Mgmt.
• Reduction of number of legal entities
• IT standardisation

… lead to sustainable efficiency gains

• HR cost savings (pay roll reduction: 79 headcounts, elderly part time program: 133 headcounts)
• IT cost savings
• TGS

More than € 20m savings targeted for 2014…

… lead to savings of € 120/unit in 2014

Property management strategy

Line	FY Target	Status Q1/2014	Main drivers for cost savings
Headcount			 Elderly part time program
reduction	~€12m	Slightly behind	 Pay roll reduction  Original plan adjusted for transactions
IT cost	~€2m	On track	 Lower process cost
			 Lower wide area network cost
			 Higher sales
TGS	~€5m	Slightly ahead	 Improved margin due to better business processes
Other operating cost	~€1m	Slightly ahead	 Overall lower SG&A and PTU cost
Total	>€20m	Well on track

Implementation of a best-in-class financing structure

Financing strategy

Financing strategy

Comments

• In April 2014, Deutsche Annington issued a € 700m hybrid bond a premier to European residential real estate companies
• The reaction of the issuance was overwhelming and the demand very strong volume as well as coupon have exceeded our expectations
• Another proven instrument enlarging our financing toolkit evidencing our innovative financing strategy

Long-term and well balanced maturity profile

Financing strategy

• No major refinancing before 2016
• Structured Loan (WOGE V) of EUR 248m due 2015 has been prepaid in April 2014
• Hybrid-bond is due 2074 (after 2023), but will loose the equity credit in 2019 (`economical maturity´)
• DeWAG loans currently under review for best redemption strategy, cash available at DAIG balance sheet.

Investment program capitalising on mega-trends supported by German regulation

Portfolio management strategy

Public subsidised funding available to support energy efficiency investments

€ 500m investment opportunities identified € 300m investment opportunities identified¹

Attractive growth potential at ~7% unlevered yield, proven by our track-record

Source: European Commission, BBSR-Bevölkerungsprognose 2030

1) Including investments for senior living as well as investments in high demand markets

Investment track record
Vintage year1)	Invest (€m)	# Units	Unlevered Asset yield	Leverage factor
Ø 2009- 2011	33.7	2,281	7.0%	0%
2012	56.6	2,982	6.8%	11.2%
2013	65.3	5,320	7.1%*	64.0%
2014 (FC)	150.1	11,750	~7.0%	~60%

*yield forecasted depending on new rents after modernisation

• Rent increases and vacancy reduction for 2012 program generating unlevered 6.8% asset yield end of 2013
• € 65.3m invested in vintage year 2013, of which
• € 48.6m invested in energy efficiency measures
• € 16.6m invested in 1,126 apartments with a yield of 10.5% for those already let
• Investment program 2014 fully on track
• Hand picked house by house. Individual projects range from ~ € 5k to ~€ 1.5m.
• Craftsmen capacities and KfW funds secured

1) Vintage year: All projects with start of construction in the respective calendar year. Projects will be completed in the vintage year or the following year. Note: Only with a steady volume y-o-y , the investments in the vintage year will correspond with the booked investment Capex of the calender year

Modernization program 2014 fully running

• Two investment modules in 2014 delivering ~7% unlevered yield:
• "Upgrade buildings" energetic building modernization (€115m)
• "Optimize apartments" vacant flat modernization for elderly living (€35m)
• Ramp-up of internal resources to realize investment volume of €150m completed
• Subcontractor capacities secured
• Low interest rates for KfW-loans secured

Current return in %

Portfolio management strategy

• Total return is the sum of current return and expected value growth
• Imbalanced market structure provides opportunities
• Growth is most crucial component
• But analyses of history shows – rent forecasts by external data providers are not reliable

Deutsche Annington's portfolio management approach

(Deutsche Annington's analyses of Germany)

• We developed a framework to evaluate the housing market
• Growth is derived from basic demographic data and own estimates
• We will invest and acquire assets with above average returns and sell assets with low return
• We identified 10 cities with a priority for acquisitions

Current return in %

City Priority city for acquisitions

Portfolio management strategy

Portfolio management strategy

Vitus and DeWAG perfectly enhance our portfolio

The new portfolios of Vitus and DeWAG perfectly fit to our portfolio management strategy and shift our position into the right direction

Extension strategy offers significant advantages to our clients and improves our cost base

Extension strategy

Key objectives of DA extension strategy:

• Increase in customer satisfaction resulting in higher customer loyalty
• Additional contribution and growth from extensions of the value chain
• Improvement of efficiency and quality of process chains which are relevant to DA core business

Strategic advantages of the TGS joint venture:

• Higher quality (build-up of know how, efficient & closely coordinated processes)
• High reliability (direct access to craftsmen capacities)
• Cost reduction (managing total costs of process)
• Nationwide scalable operating platform

order volume

Development of the multimedia partnership with Deutsche Telekom (DTAG):

• DTAG will equip 145,000 of Deutsche Annington residential units with modern fibre-optic technology.

• 58,000 units will be connected end Q1 2014

• Partnership opens the ground for further cross-selling opportunities

Partnership offers huge cost savings for our clients

TV supply: development of annual average costs per household

Example: Refurbishment of a vacant flat

Higher flexibility for acquisitions and integration of portfolios, continuing strong deal flow

• There is a continuing flow of attractive portfolios
• As the largest residential real estate company in Germany operating throughout the country and due to increased financial flexibility, we have strengthened our market position significantly and are able to bid for every attractive portfolio
• However we continue to have a disciplined approach. The preconditions for any purchase are:
• Fit to portfolio
• FFO/share accretion
• NAV/share at least neutral
• Maintaining our BBB rating

Vitus and DeWAG fulfill all of Deutsche Annington's acquisition criteria

Acquisition strategy

Vitus and DeWAG: Two highly attractive portfolios

Acquisition strategy

Two highly attractive portfolios , which are both accretive to Deutsche Annington's strategy, allowing for significant increase in asset density and regional diversification

	Vitus	DeWAG	Combined
Transaction rationale	 Sizeable portfolio (over 30,000 units), increasing Deutsche Annington's scale in certain locations (Bremen, Kiel, NRW)  Strong geographic overlap with significant synergy potential	 High quality portfolio in strong growth regions with favourable demographics  High synergy potential from integration into Deutsche Annington's management platform  Boost privatisation business	 Balanced impact on Deutsche Annington's portfolio mix that optimally fits the Company's strategy
Considerations1	€ 1,420m	€ 944m	€ 2,364m
NCR Multiple1	13.0x	15.1x	14.1x

1) As of 31.12.2013

Fulfilling all our criteria

• Strategic fit
• FFO1/share accretion
• NAV/share at least neutral (Vitus and DeWAG transactions: moderate NAV/share accretive from day one)
• Financing structure designed to maintain our BBB rating

Vitus and DeWAG perfectly fit to our portfolio

Acquisition strategy

Portfolio Comparison1
	Vitus	DeWAG	DAIG	Combined
Number of units	30,119	11,412	175,258	216,789
Vacancy	3.6%	4.3%	3.5%	3.6%
Rent/sqm	4.87	6.62	5.40	5.40
Multiple2	13.0x	15.1x	14.2x	14.1x

1) Based on Q4/2013 figures 2) DeWAG and Vitus: transaction multiple ; DAIG: valuation multiple

Vitus

DeWAG

New assets offering compelling upside potential: Modernisation +13,396 units, privatization +4,390 units

Acquisition strategy

Significant synergy potential with Deutsche Annington management and ownership

Acquisition strategy

	Rents	 Catch-up to market rent and increase rental growth by improved letting effort (both)  Planed vacancy reduction of 0.5pp in vacancy rate – target reached after two years (DeWAG)	Vitus DeWAG Combined Year 1 Year 1 Year 1
Property Related Costs Improvements		 Reduce Bad Debt to DAIG's target of 1% of NCR over the first two years (Vitus)  Reduce Non-Recoverable Vacancy Costs to DAIG's levels (DeWAG)	+ = €1m €6m €7m Year 2 Year 2 Year 2
sation	Moderni	 Higher average rental growth and slightly lower Maintenance costs due to investment activities (both)  Identified investment opportunities of c. €65m through due diligence phase (both)	+ = €10m €9m €19m Year 3 Year 3 Year 3
Administration Improvements	Property Management Costs	 DAIG's scalable management platform allows significant headcount and administration cost synergies (both)  Units managed at DAIG's low marginal costs (both)  No takeover of DeWAG personal	+ = €15m €10m €25m
Financing Improvements	Lower Interest (assumption driven)	 Potential synergies due to DAIG's significant lower refinancing costs. (both)  BBB rating and unsecured financing allows refinancing at c. 1.0pp better than existing (both)	Up to € 8m

Synergies will substantially improve EBITDA of Vitus and DeWAG

Acquisition strategy

Resulting FFO I Yield of more than 10% after 3 years

Note: excluding any sales activities

© Deutsche Annington Immobilien SE Kempen & Co European Property Seminar, Amsterdam, 5 June 2014 29

Integration of Vitus & DeWAG completed until year end

	2014				2015
	Q1	Q2	Q3	Q4	Q1	Q2
DeWAG
1. Signing	1
2. Closing		2
3. Integration of Finance / Accounting			3
4. Integration of real estate administrative and technical processes			4
5. Finalisation and transfer of former periods PTU billing				5
Vitus
1. Signing	1
2. Closing			2
3. Integration of Finance / Accounting					3
4. Integration of real estate administrative and technical processes					4
5. Finalization and transfer of former periods PTU billing					5

Important milestones of funding already achieved

• mainly subsidised loans or low-interest bearing debt. 1
• 11.8m shares in kind will be issued to Vitus shareholders at closing. Value consideration is DAIGs NAV at YE 2013 – € 21.33 2
• Equity markets approached to raise primary capital under Deutsche Annington's authorised share capital at March 2013. 16m shares issued at € 19.00. 3
• Issuance of hybrid bond, allowing for 50% equity credit, thereby strengthening the combined capital ratios issued at April 2014. For details see appendix. 4
• Cash / bond financing: Residual amount to be raised from cash or via bond market in line with Deutsche Annington's strategy of evenly spreading its maturity profile and/or asset disposals 5

Significant increase of free float

• On March 5th, 2014, DAIG issued 16.0m new shares via an accelerated book building ("ABB") at EUR19.00 per share, a discount of 4.6% to prior days closing
• New total number of Deutsche Annington shares outstanding reached 240.2m
• At the same time, Monterey and CPI Capital Partners split off their shareholder agreement. CPI received 27.6m shares and offered 11.0m of these shares to be placed as secondary
• On May 19th, 2014 Monterey handed over their shares in DAIG to their fund investors. 18.7m shares of investors preferring no shares as well as 11.3m of CPI shares were placed as secondary via an ABB at EUR 19,50 per share
• Hence, DAIGs free float and share turnover have increased significantly

^* In addition, the voting right of Monterey Holdings I S.á r.l. and TFCP Capital Investments Limited are attributed to Mr. Hands

^** Monterey Holdings I S.á r.l. is indirectly controlled by TFCP Capital Holdings Limited. Monterey Holdings I S.á r.l. directly holds 8.76% and TFCP Capital Holdings Limited directly hold 0.28% of the voting rights in Deutsche Annington Immobilien SE.

Appendix

Q1 2014 key figures confirm positive development

Key Figures
in €m	Q1 2014	Q1 2013	Change in %
Residential Units k	174.3	180.3	-3.3%
Rental income	180.5	182.0	-0.8%
Vacancy rate %	3.7%	4.0%	-0.3pp
Monthly in-place rent €/sqm	5.44	5.34	1.9%
Adjusted EBITDA Rental	109.5	109.3	0.2%
Adj. EBITDA Rental / unit in €	626	603	3.8%
Income from disposal of properties	60.2	102.7	-41.4%
Adjusted EBITDA Sales	9.2	11.6	-20.7%
Adjusted EBITDA	118.7	120.9	-1.8%
FFO 1	61.9	49.3	25.6%
FFO 2	71.1	60.9	16.7%
FFO 1 ex maintenance	95.9	83.6	14.7%
AFFO	56.6	45.4	24.7%
Fair market value properties 3	10,324.6	10,326.7	0.0%
NAV 3	5,118.8	4,782.2	7.0%
LTV, in % 3	46.2%	50.2%	-4.0pp
FFO 1 / share in €1.3	0.26	0.25	4.5%
NAV / share in €1.2.3	21.31	21.33	-0.1%

1) Based on the shares qualifying for a dividend on the reporting date Mar 31, 2014: 240,242,425 and Mar. 31, 2013: 200,000,000

2) NAV / share Q1 2014 vs YE 2013, based on the shares qualifying for a dividend on the reporting date Mar 31, 2014: 240,242,425 and Dec 31, 2013: 224,242,425

3) Q1 2014 vs YE 2013

Positive performance continuing Operational results are backing our 2014 guidance

Q1 2013 Q1 2014

1) Based on average number of units over the period

603

626

Positive performance continuing Per share KPIs diluted by capital increase in March*

*Based on number of shares as of 31 March 2013 (200 m) and 31 March 2014 (240,2 m)

FFO 1 ex. maintenance (€m)

FFO by all definitions significantly exceeding previous year

Comments

• All FFOs with significant positive development
• Main driver is a significantly lower interest expense from the new financing strategy being fully in place now
• Adjusted EBITDA slightly lower due to reduced sales volume, Adjusted EBITDA Rental flat despite reduced portfolio

NAV rising due to profitable growth and capital increase

Comments

• Main impact of NAV growth derives from capital increase on March 5th, 2014
• Total comprehensive income includes Q1 valuation impact
• Other changes include the costs for the capital increase

Note: Rounding errors may occur

Q1 2014 – Adjusted EBITDA Rental flat despite sales

Bridge to Adjusted EBITDA Rental segment

	Q1 2013
38.3	387.5
58.4	70.7
18.9	170.1
1.6	1.5
-19.8	-514.5
97.4	115.3
20.8	3.8
0.5	1.8
118.7	120.9
109.5	109.3
9.2	11.6
	Q1 2014

(€m)	Q1 2014	Q1 2013
Number of units end of period	174,327	180,292
Rental Income	180.5	182.0
Maintenance	-34.0	-34.3
Operating costs	-37.0	-38.4
Adjusted EBITDA Rental	109.5	109.3

Sales segment

(€m)	Q1 2014	Q1 2013
Number of units sold	926	1,765
Income from disposal of properties	60.2	102.7
Carrying amount of properties sold	-54.2	-95.5
Revaluation of assets held for sale	6.1	5.5
Profit on disposal of properties (IFRS)	12.1	12.7
Operating costs	-3.4	-2.9
Period adjustments	0.5	1.8
Adjusted EBITDA Sales	9.2	11.6

Evolution of Adjusted EBITDA (€m)

Adjusted EBITDA Rental flat despite reduced portfolio as slight top-line decrease is compensated by operating cost reductions

• Adjusted EBITDA Rental per unit improved by 3.8% to € 626 per unit
• Adjusted EBITDA Sales decreased due to reduced sales volumes, while step-ups improved significantly especially in the privatisation segment
• Non-recurring items reflect costs related to our recent acquisition activities

1) Based on average number of units over the period

Q1 2014 – P&L development

P&L					Comments
			Change
(€m)	Q1 2014	Q1 2013	(€m)	%
Revenues from property letting	260.7	261.7	-1.0	-0.4
Rental income	180.5	182.0	-1.5	-0.8
Ancillary costs	80.2	79.7	0.5	0.6
Other income from property management	4.5	4.3	0.2	4.7
Income from property management	265.2	266.0	-0.8	-0.3
Income from sale of properties	60.2	102.7	-42.5	-41.4
Carrying amount of properties sold	-54.2	-95.5	41.3	-43.2
Revaluation of assets held for sale	6.1	5.5	0.6	10.9
Profit on disposal of properties	12.1	12.7	-0.6	-4.7
Net income from fair value adjustments of
investment properties	19.8	514.5	-494.7	-96.2
Capitalised internal modernisation expenses	13.5	4.3	9.2	214.0
Cost of materials	-119.3	-121.1	1.8	-1.5
Expenses for ancillary costs	-79.5	-80.1	0.6	-3.8
Expenses for maintenance	-26.3	-27.4	1.1	-4.0
Other costs of purchased goods and services	-13.5	-13.6	0.1	-0.7
Personnel expenses	-44.1	-35.1	-9.0	33.7
Depreciation and amortisation	-1.6	-1.5	-0.1	6.7
Other operating income	9.8	9.7	0.1	1.0
Other operating expenses	-39.8	-21.2	-18.6	87.7
Financial income	1.4	3.1	-1.7	-54.8
Financial expenses	-59.8	-73.8	14.0	-19.0
Profit before tax	57.2	557.6	-500.4	-89.7
Income tax	-18.9	-170.1	151.2	-88.9
Current income tax	-2.9	-3.4	0.5	-14.7
Others (incl. deferred tax)	-16.0	-166.7	150.7	-90.4
Profit for the period	38.3	387.5	-349.2	-90.1

• Nearly stable rental income despite sales-related reduction of portfolio size from 180k to 174k
• Offset by higher average residential in place rent per square meter per month (5.44) and lower vacancy rate (3.7%)
• Decrease due to reduced sales volumes, while step-ups improved significantly especially in the privatisation segment

Increasing contribution of internal craftsmen organisation TGS to maintenance and modernisation work

Ramp-up of personnel from 2,516 to 3,073 employees leads to increased personnel expenses which primarily result from insourcing of craftsmen

Q1 2014 – P&L development (cont'd)

P&L					Comments
			Change
(€m)	Q1 2014	Q1 2013	(€m)	%
Revenues from property letting	260.7	261.7	-1.0	-0.4
Rental income	180.5	182.0	-1.5	-0.8
Ancillary costs	80.2	79.7	0.5	0.6
Other income from property management	4.5	4.3	0.2	4.7
Income from property management	265.2	266.0	-0.8	-0.3
Income from sale of properties	60.2	102.7	-42.5	-41.4
Carrying amount of properties sold	-54.2	-95.5	41.3	-43.2
Revaluation of assets held for sale	6.1	5.5	0.6	10.9
Profit on disposal of properties	12.1	12.7	-0.6	-4.7
Net income from fair value adjustments of investment properties	19.8	514.5	-494.7	-96.2
Capitalised internal modernisation expenses	13.5	4.3	9.2	214.0
Cost of materials	-119.3	-121.1	1.8	-1.5
Expenses for ancillary costs	-79.5	-80.1	0.6	-3.8
Expenses for maintenance	-26.3	-27.4	1.1	-4.0
Other costs of purchased goods and services	-13.5	-13.6	0.1	-0.7
Personnel expenses	-44.1	-35.1	-9.0	33.7
Depreciation and amortisation	-1.6	-1.5	-0.1	6.7
Other operating income	9.8	9.7	0.1	1.0
Other operating expenses	-39.8	-21.2	-18.6	87.7
Financial income	1.4	3.1	-1.7	-54.8
Financial expenses	-59.8	-73.8	14.0	-19.0
Profit before tax	57.2	557.6	-500.4	-89.7
Income tax	-18.9	-170.1	151.2	-88.9
Current income tax	-2.9	-3.4	0.5	-14.7
Others (incl. deferred tax)	-16.0	-166.7	150.7	-90.4	the previous year

Increase mainly driven by acquisition costs shown as non-recurring items in the management accounts

• Lower prepayment penalties and commitment fees due to successful restructuring of financial debt positions in previous year
• Lower net debt and reduced FFO interest expense as result of improved financing structure

Driven by valuation uplift of investment properties in the previous year

© Deutsche Annington Immobilien SE Kempen & Co European Property Seminar, Amsterdam, 5 June 2014 41

Profit for the period 38.3 387.5 -349.2 -90.1

Overview of DA's modernisation and maintenance split

Maintenance and modernisation	Q1 2014 (€m)		Comments
	Q1 2014	Q1 2013
Maintenance expenses	34.0	34.3	Clear increase reflects successful take-off of  investment programme: energy efficiency projects in 2500 units & senior living projects in 700 units started
Capitalised maintenance	5.6	3.9	Last year impacted by unfavourable weather  conditions and the availability of subsidised debt
Modernisation work	17.7	1.2	for funding (KfW means)
Total cost of modernisation and maintenance work	57.3	39.4	Revenues of in-house craftsmen organisation  increased significantly due to successful TGS implementation
Thereof sales of own craftmen's organisation	37.4	26.5
Thereof bought-in services	19.9	12.9	Increase mainly due to energetic modernisation 
Modernisation and maintenance / sqm [€]	5.1	3.4

Q1 2014 – Balance sheet evolution

Overview
(€m) Investment properties	Mar. 31, 2014 10,268.0	Dec. 31, 2013 10,266.4
Other non-current assets	87.3	86.2
Total non-current assets	10,355.3	10,352.6
Cash and cash equivalents	847.5	547.8
Other current assets	145.0	192.4
Total current assets	992.5	740.2
Total assets	11,347.8	11,092.8
Total equity attributable to DA shareholders	4,121.9	3,805.5
Non-controlling interests	13.9	12.5
Total equity	4,135.8	3,818.0
Other financial liabilities	5,471.7	5,553.0
Deferred tax liabilities	930.4	925.0
Provisions for pensions and similar obligations	301.9	291.0
Other non-current liabilities	64.0	61.7
Total non-current liabilities	6,768.0	6,830.7
Other financial liabilities	211.9	212.1
Other current liabilities	232.1	232.0
Total current liabilities	444.0	444.1
Total liabilities	7,212.0	7,274.8
Total equity and liabilities	11,347.8	11,092.8

Rent increase on track, vacancy yoy slightly decreased

DA Residential Portfolio March 31, 2014
	Units		Area	Vacancy	In-Place Rent		Rent l-f-l	Vacancy
Portfolio Segment	#	%	(´000 sqm)	%	€m (annualised)	€/sqm	Y-o-Y in %	Y-o-Y in %
Operate	68,000	39.0	4,297	3.2	275.2	5.52	1.7	(0.4)
Upgrade	45,469	26.1	2,870	2.9	179.0	5.36	2.0	0.4
Optimise	31,944	18.3	2,028	3.1	137.4	5.83	2.8	0.9
RENTAL ONLY	145,413	83.4	9,195	3.1	591.6	5.54	2.2	0.1
Privatise	19,319	11.1	1,321	4.8	80.3	5.31	1.6	(0.7)
Non-Core	9,595	5.5	602	11.0	27.0	4.21	0.9	(1.6)
TOTAL	174,327	100	11,119	3.7	699.0	5.44	1.9	(0.3)

Note: Rounding errors may occur

Rating: investment grade rating from S&P

Corporate investment grade rating

Rating agency	Rating	Outlook	Last Update
Standard & Poor's	BBB	Stable	23 July 2013

Bond ratings

	Amount	Issue Price	Coupon	Maturity Date	Rating
3 years 2.125% Euro Bond	€ 700m	99.793%	2.125%	25 July 2016	BBB
6 years 3.125% Euro Bond	€ 600m	99.935%	3.125%	25 July 2019	BBB
4 years 3.200% Yankee Bond	USD 750m	100.000%	3.200% (2.970%)*	2 Oct 2017	BBB
10 years 5.000% Yankee Bond	USD 250m	98.993%	5.000% (4.580%)*	2 Oct 2023	BBB
8 years 3.625% EMTN	€500m	99.843%	3.625%	8 Oct 2021	BBB
60 years 4,625% Hybrid	€700m	99.782%	4.625%	8 Apr 2074	BB+

*EUR-equivalent re-offer yield

Hybrid structure

	Overview of the key features
Issuer	 Deutsche Annington Finance BV
Guarantor	 Deutsche Annington Immobilien SE
Instrument	 € 700mm Subordinated Notes subject to Interest Rate Reset with a First Call Date 2019, due 2074 (the "Notes")
Maturity	 60 years (2074)
Issue Price	 99.782%
Issue Ratings	 BB+ from Standard & Poor's (2 notches below issuer's senior rating)
Equity Credit	 50% equity credit, reduced to 0% at the First Call Date from Standard & Poor's
Accounting	 Debt accounting under IFRS
Issuer's Call Options	 Redeemable at Par on 8 April 2019 (the "First Call Date"), and every 5 years thereafter
Ranking	 Deeply subordinated, senior only to the Issuer's share capital
Interest	 Interest will be payable annually in arrears  Fixed rate until the First Call Date  From (and including) the First Call Date, Interest resets every 5 years to a fixed rate based on the relevant 5-year Swap Rate plus the relevant Margin
Coupon	 4.625%
Coupon Step-Up	 25bps in April 2024 (the "First Step-up Date")  Additional 75bps in April 2039 (the "Second Step-up Date")  500bps if a Change of Control occurs and the Notes are not called
Early Redemption Events	 Gross-up Event at Par  Tax Deductibility Event at 101%  Accounting Event at 101%  Rating Event at 101%  Repurchase Event at Par  Change of Control at Par
Interest Deferral	 Payment of interest may be deferred on any Interest Payment Date  Cash cumulative and not compounding  Outstanding Arrears of Interest may be paid at any time  The Issuer must pay outstanding Arrears of Interest on the earliest of the following (each a "Mandatory Settlement Date"): a) Payment on Junior Obligations or Parity Obligations, of the Issuer or of the Guarantor, subject to certain exceptions b) Repurchase, redemption or acquisition of Junior Obligations or Parity Obligations, of the Issuer or of the Guarantor, subject to certain exceptions c) Redemption of the Notes d) Interest Payment Date on which a scheduled interest is paid e) Winding-up, dissolution or liquidation of the Issuer or the Guarantor
Denominations	 €100k
Listing	 Luxembourg Stock Exchange

Privatisation
	FY 2012	FY 2013
# units sold	2,784	2,576
Gross proceeds (€m)	233.5	223.4
Fair value disposals (€m)	-191.0	-178.8
Gross profit (€m)	42.5	44.6
Fair value step-up	22.2%	24.9%
		Target > 20%

Non-Core Disposals
	FY 2012	FY 2013
# units sold	2,035	4,144

Gross proceeds (€m)	71.4	130.1
Fair value disposals (€m)	-59.7	-131.7
Gross profit (€m)	11.7	-1.6
Fair value step-up	19.5%	-1.2%
		Target = 0%

• Privatisation volume on similar level as previous year

• Fair value step-up increased due to good market environment

• Non-core disposals stepped up significantly, driven by sale of a package of 2,100 units in Q4

• Disposals around fair value as planned
• Higher step-up in 2012 mainly due to sale of large commercial units with a one-off character

Investment Process

	Year 1	Year 2	Year 3
	Investment Definition & Decision
Heat insulation		Construction of vintage year 2
			Rent increases of vintage year 2
	Investment Definition & Decision
Heating system		Construction of vintage year 2
		Rent	increases of vintage year 2
	Investment Definition & Decision
Apartments		Construction of vintage year 2
		Rent increases of vintage	year 2

Contact	Financial Calendar 2014
Investor Relations	May 20-21	Management Roadshow in Paris
Deutsche Annington Immobilien SE Philippstraße 3 44803 Bochum, Germany	May 22	IR Roadshow in Düsseldorf/Cologne
	June 5	Kempen RE Conference in Amsterdam
	June 12	Deutsche Bank Conference in Berlin
Tel.: +49 234 314 1609	June 25	IR Roadshow in Vienna
investorrelations@deutsche-annington.com	June 26	IR Roadshow in Milano
http://www.deutsche-annington.com	July 31	6M 2014 results and earnings call
	Oct 30	9M 2014 results and earnings call