Vonovia SE

Investor Presentation • Mar 6, 2014

Deutsche Annington Immobilien SE Roadshow New York

06 - 07 March 2014

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

• Delivered on all promises
• FFO1/share increased by 17.3%, NAV/share improved by 23.7%
• All other KPIs improved in line with or exceeded guidance
• Proposed dividend of € 0.70 / share (3.9% yield on 2013 closing pricing of € 18.00)

Follow our strategy

• Implementation of best-in-class financing structure completed
• Investment program 2014 (€ 150m, ~7% unlevered yield) fully on track
• More than € 20m SG&A cost savings to further improve productivity in 2014
• Positive outlook for 2014, expecting strong operational and financial performance

Utilisation of scale effects and nationwide presence: Acquisition of DeWAG and integration of Vitus

Two transactions with more than 41k units for a total purchase price of € 2.4bn at an 14.1x NCR multiple and combined GAV of € 2.5bn, at an FFO 1 yield of more than 10% after 3 years

	Vitus	DeWAG
Units	30,119	11,412
Consideration	€ 1,420m	€ 944m
NCR Multiple	13.0x	15.1x

Data per 31.12.2013

• The acquisition of DeWAG and the integration of Vitus fulfill all our criteria:
• Perfect strategic fit (increase of Deutsche Annington's asset density, regional diversification with expansion into growth regions, scale benefits, upside from modernisation)
• FFO/share accretion as result of attractive yields, favourable refinancing structure and synergy realisation
• Moderate NAV/share accretion from day one
• Financing structure designed to maintain our BBB rating
• Integration fully mapped out

(DeWAG refers to a portfolio managed by DeWAG; Effective take-over date 30.6.14: Gross purchase price for DeWAG of € 970m)

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

Improvement of all KPIs in 2013 FFO 1/share + 17.3%, NAV/share +23.7%

FFO 1 ex. maintenance (€m)

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

Improvement of all KPIs in 2013 Rental increase of +2.3%, vacancy reduced to 3.5%

1) Based on average number of units over the period

FFO by all definitions significantly exceeding previous year

Comments

• All FFOs with significant positive development
• Main driver is a significantly lower interest expense from restructuring of debt in the course of GRAND refinancing
• Additionally, positive impact from growth in Adjusted EBITDA rental

NAV rising due to external valuation and shareholder contribution

• Main impacts from valuation of investment properties and increase in capital by old and new shareholders
• Valuation impact only on investment properties, excluding deferred tax impact of external valuation
• Other changes mainly cover the operational result.

Note: Rounding errors may occur

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

To drive growth in both FFO and NAV, we follow four operational strategies for the existing portfolio

		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

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

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

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

	Reputation & customer satisfaction
al on Traditi	1	Property management strategy	 Optimise EBITDA by increasing rent, reducing vacancy, reducing operating cost, adequate 5 maintenance	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

Implementation of best-in-class financing structure in the German real estate sector completed

Long-term and well balanced maturity profile

• Maturity profile further extended and smoothed (8.4 years)
• No major refinancing before 2015

	Reputation & customer satisfaction
al on Traditi	1	Property management strategy	 Optimise EBITDA by increasing rent, reducing vacancy, reducing operating cost and 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 lNAV/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

Investment program capitalising on mega-trends supported by German regulation

€ 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

Privatisations stable, Non-Core disposals ramped up successfully

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%

	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

	Reputation & customer satisfaction
al on Traditi	1 Property management strategy	 Optimise EBITDA by increasing rent, reducing vacancy, reducing operating cost and 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

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

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

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

TGS serves the basis of our investments and offers a significant cost advantage

Partnership offers huge cost savings for our clients

TV supply: development of annual average costs per household

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

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: Two highly attractive portfolios

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

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

Vitus

1. Kiel

DeWAG

1. Berlin

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

Significant synergy potential with Deutsche Annington management and ownership

		 Catch-up to market rent and increase rental growth by
Property Related Improvements	Rents	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
	Costs	 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
	Moderni sation	 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

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

Note: excluding any sales activities

Transactions with positive impact on NAV & FFO / share

Note: NAV per Share Calculation excludes impact of transaction costs

¹ Based on €250-265mm FFO1 guidance for 2014 of DA standalone ² Full FFO run-rate of transactions as expected in 2015 (incl. synergies)

Overview of envisaged financing structure

ongoing liquidity needs and with a view to preserve S&P rating through a

provided upfront to be taken out with a combination of equity and hybrid

Use access to equity markets to raise primary capital under Deutsche Annington's authorised share capital

Issuance of hybrid bond, allowing for

strengthening the combined capital

Cash / bond financing: Current cash on balance sheet of over €500mm (as per 31 December 2013) with additional €130mm of working capital line from 1 March 2014. Residual amount to be raised via bond market in line with Deutsche Annington's strategy of evenly spreading its maturity profile

50% equity credit, thereby

and/or asset disposals

ratios

1

2

3

combination of instruments

Equity underwrite of € 700mm

¹ 11.8mm shares in kind issued to Vitus shareholders

2013 was a very successful year for Deutsche Annington

• Excellent operational performance
• Innovative finance structure implemented
• We delivered on our promises

We follow our strategy

• Value enhancing portfolio management strategy
• Sustainable efficiency improvement
• Recent transactions fulfilling our strict criteria and offering operational scale effects
• We are confident that 2014 will be another prosperous year for all of us

Appendix

FY 2013 key figures confirm the positive development of DA

Key Figures
in €m	FY 2013	FY 2012	Change in %
Residential Units k	175.3	182.0	-3.7%
Rental income	728.0	729.0	-0.1%
Vacancy rate %	3.5%	3.9%	-0.4pp
Monthly in-place rent €/sqm	5.40	5.30	1.9%
Adjusted EBITDA Rental	442.7	437.3	1.2%
Adj. EBITDA Rental / unit in €	2,468	2,372	4.1%
Income from disposal of properties	353.5	304.9	15.9%
Adjusted EBITDA Sales	27.7	36.7	-24.5%
Adjusted EBITDA	470.4	474.0	-0.8%
FFO 1	223.5	169.9	31.5%
FFO 2	251.2	206.6	21.6%
FFO 1 before maintenance	360.0	297.2	21.1%
AFFO	203.5	146.2	39.2%
Fair value market properties	10,327	9,982	3.5%
NAV	4,782	3,449	38.7%
LTV, in %	50.2%	58.6%	-8.4pp
FFO 1 / share in €1	1.00	0.85	17.3%
NAV / share in €1	21.33	17.24	23.7%

1) Based on the shares qualifying for a dividend on the reporting date Dec 31, 2013: 224,242,425 and Dec. 31, 2012: 200,000,000

Rent increase type	growth rate 2012 - 2013
Sitting tenants (non-subsidised)	+0.9%
Sitting tenants (subsidised)	+0.0%
New rentals	+0.7%
Subtotal excl. modernisation	+1.6%
Mix/sales effect	+0.4%
Total incl. mix	+1.9%
Modernisation	+0.4%
Total incl. mod and mix	+2.3%

Rounded figures

FY 2013 – Increased Adjusted EBITDA Rental and Adjusted EBITDA Sales slightly down

Bridge to Adjusted EBITDA			Rental segment
(€m)	FY 2013	FY 2012
Profit for the period	484.2	172.2
Interest expenses / income	288.3	433.9
Income taxes	205.4	43.6
Depreciation	6.8	6.1
Net income from fair value adjustments of investment properties	-553.7	-205.6
EBITDA IFRS	431.0	450.2	Sales segment
Non-recurring items Period adjustments	48.4 -9.0	21.2 2.6
Adjusted EBITDA	470.4	474.0
Adjusted EBITDA Rental	442.7	437.3
Adjusted EBITDA Sales	27.7	36.7

(€m)	FY 2013	FY 2012
number of units at end of period (k)	175.3	182.0
Rental Income	728.0	729.0
Maintenance	-136.5	-127.3
Operating costs	-148.8	-164.4
Adjusted EBITDA Rental	442.7	437.3
Sales segment
(€m)	FY 2013	FY 2012
Number of units sold	6.720	4.819
Income from disposal of properties	353.5	304.9
Carrying amount of properties sold	-325.8	-270.4
Revaluation of assets held for sale	24.3	17.1
Profit on disposal of properties (IFRS)	52.0	51.6
Operating costs	-15.3	-17.5
Period adjustments	-9.0	2.6
Adjusted EBITDA Sales	27.7	36.7

Evolution of Adjusted EBITDA (€m)

• Adjusted EBITDA Rental growing despite reduced portfolio
• Adjusted EBITDA Rental per unit increased by 4.1% to €2,468 per unit
• Adjusted EBITDA Sales below last year's level mainly due to large noncore sale while step-ups improved
• As a result, Adjusted EBITDA decreased slightly by -0.8%

P&L					Comments
			Change
(€m)	FY 2013	FY 2012	(€m)	%
Revenues from property letting	1048.3	1046.5	1.8	0.2
Rental income	728.0	729.0	-1.0	-0.1
Ancillary costs	320.3	317.5	2.8	0.9
Other income from property management	19.3	18.4	0.9	4.9
Income from property management	1,067.6	1,064.9	2.7	0.3
Income from sale of properties	353.5	304.9	48.6	15.9	ancillary costs
Carrying amount of properties sold	-325.8	-270.4	-55.4	20.5
Revaluation of assets held for sale	24.3	17.1	7.2	42.1
Profit on disposal of properties	52.0	51.6	0.4	0.8
Net income from fair value adjustments of
investment properties	553.7	205.6	348.1	169.3
Capitalised internal modernisation expenses	42.0	9.9	32.1	324.2	properties
Expenses for ancillary costs	-324.9	-337.8	12.9	-3.8
Expenses for maintenance	-119.7	-119.0	-0.7	0.6
Other costs of purchased goods and services	-58.2	-66.5	8.3	-12.5
Personnel expenses	-172.1	-116.2	-55.9	33.7
Depreciation and amortisation	-6.8	-6.1	-0.7	11.5
Other operating income	45.8	43.5	2.3	5.3
Other operating expenses	-104.2	-83.2	-21	25.2
Financial income	14.0	12.3	1.7	13.8
Financial expenses	-299.6	-443.2	143.6	-32.4
Profit before tax	689.6	215.8	473.8	219.6
Income tax	-205.4	-43.6	-161.8	371.1
Current income tax	-8.5	2.1	-10.6	-
Others (incl. deferred tax)	-196.8	-45.7	-151.1	330.6
Profit for the period	484.2	172.2	312.0	181.2

• Stable rental income despite sales-related reduction of portfolio size from 182k to 175k
• Offset by higher average residential in-place rent per square metre and month ( € 5.40 vs. € 5.30) and lower vacancy rate (3.5% vs. 3.9%)
• Improved vacancy rate overcompensates reduced portfolio size and leads to higher revenues from ancillary costs
• Slight increase due to higher sales volumes & improved step-ups (excl. large non-core portfolio) despite adverse impact of large non-core sale

Increase driven by latest valuation of investment properties

Reduction reflects smaller portfolio size and insourcing effect of our own caretaker organisation

FY 2013 – P&L development (cont'd)

P&L					Comments
			Change
(€m)	FY 2013	FY 2012	(€m)	%
Revenues from property letting	1048.3	1046.5	1.8	0.2
Rental income	728.0	729.0	-1.0	-0.1
Ancillary costs	320.3	317.5	2.8	0.9
Other income from property management	19.3	18.4	0.9	4.9
Income from property management	1,067.6	1,064.9	2.7	0.3
Income from sale of properties	353.5	304.9	48.6	15.9
Carrying amount of properties sold	-325.8	-270.4	-55.4	20.5
Revaluation of assets held for sale	24.3	17.1	7.2	42.1
Profit on disposal of properties	52.0	51.6	0.4	0.8
Net income from fair value adjustments of investment properties	553.7	205.6	348.1	169.3	Reduction primarily results from caretaker  insourcing initiative
Capitalised internal modernisation expenses	42.0	9.9	32.1	324.2	Ramp-up of personnel from 2,407 to 2,935 
Expenses for ancillary costs	-324.9	-337.8	12.9	-3.8	employees leads to increased personnel expenses
Expenses for maintenance	-119.7	-119.0	-0.7	0.6	which primarily result from the insourcing initiative of caretakers and craftsmen; further effects from new
Other costs of purchased goods and services	-58.2	-66.5	8.3	-12.5	elderly part-time program, provisions for severance
Personnel expenses	-172.1	-116.2	-55.9	33.7	payments and contributions to long-term incentive plans (LTIP)
Depreciation and amortisation	-6.8	-6.1	-0.7	11.5
Other operating income	45.8	43.5	2.3	5.3	Increase mainly driven by insourcing, higher  provisions and miscellaneous from refinancing and
Other operating expenses	-104.2	-83.2	-21	25.2	re-organisation
Financial income	14.0	12.3	1.7	13.8	Substantial decrease due to lower interest rates 
Financial expenses	-299.6	-443.2	143.6	-32.4	and reduced transaction cost as a result of the
Profit before tax	689.6	215.8	473.8	219.6	restructuring of our debt positions
Income tax	-205.4	-43.6	-161.8	371.1	Higher taxable income in 2013, 2012 affected by 
Current income tax	-8.5	2.1	-10.6	-	GRAND restructuring cost
Others (incl. deferred tax)	-196.8	-45.7	-151.1	330.6	Driven by increase in investment properties 
Profit for the period	484.2	172.2	312.0	181.2

© Deutsche Annington Immobilien SE 28.02.2014 38

Maintenance and modernisation (€m)
	FY 2013	FY 2012
Maintenance expenses	136.5	127.3
Capitalised maintenance	21.1	23.7
Modernisation work	70.8	65.7
Total cost of modernisation and maintenance work
Thereof sales of own craftmen's organisation	123.8	54.3
Thereof bought-in services	104.6	162.4
Modernisation and maintenance / sqm [€]	20.0	18.4

FY 2013 – Balance sheet evolution

Overview			Comments
(€m)	FY 2013	FY 2012
Investment properties	10,266.4	9,843.6	Increase driven by valuation (based on DCF method) 
Other non-current assets	86.2	103.2	while number of units decreased from 182k to 175k
Total non-current assets	10,352.6	9,946.8
Cash and cash equivalents	547.8	470.1
Other current assets	192.4	191.4
Total current assets	740.2	661.5
Total assets	11,092.8	10,608.3	Contribution of the "S"Notes of 239 m€; net capital  increase of 386 m€ as part of the IPO; contribution
Total equity attributable to DA shareholders	3,805.5	2,666.4	from the profit for the period of 480.2 m€
Non-controlling interests	12.5	11.0
Total equity	3,818.0	2,677.4	Net repayment of financial liabilities amounting to  351.3 m€
Other financial liabilities	5,553.0	5,766.7	Increase driven by valuation (based on DCF method) 
Deferred tax liabilities	925.0	724.2	while number of units decreased from 182k to 175k
Provisions for pensions and similar obligations	291.0	319.0	the remaining tax liability EK02 was paid in 2013 
Other non-current liabilities	61.7	130.6	ahead of schedule
Total non-current liabilities	6,830.7	6,940.5
Other financial liabilities	212.1	683.8	Current provisions (part of other non-current liabilities) 
Other current liabilities	232.0	306.6	decreased as a consequence of the completed
Total current liabilities	444.1	990.4	GRAND restructuring
Total liabilities	7,274.8	7,930.9
Total equity and liabilities	11,092.8	10,608.3

DA Residential Portfolio Dec. 31, 2013
	Units		Area	Vacancy		In-Place Rent	Rent l-f-l	Vacancy
Portfolio Segment	#	%	(´000 sqm)	%	€m	€/sqm	Y-o-Y in %	Y-o-Y in %
Operate	78,764	45	4,999	3.0	316	5.43	1.7	-0.1
Upgrade	43,476	25	2,743	2.8	170	5.33	1.8	0.0
Optimise	21,363	12	1,335	2.1	96	6.10	3.5	0.1
RENTAL ONLY	143,603	82	9,077	2.8	582	5.50	2.0	0.0
Privatise	20,536	12	1,406	4.9	85	5.31	1.9	-0.9
Non-Core	11,119	6	699	9.7	32	4.24	0.6	-1.4
TOTAL	175,258	100	11,182	3.5	699	5.40	1.9	-0.4

Investment program for 2014 fully locked in

Location	Upgrade Build (k€)	Optimize Apartm. (k€)	Invest total (k€)	Max. #units
Dortmund	19,457	4,708	24,165	1454
Frankfurt am Main	14,617	4,222	18,839	1209
Berlin	7,849	3,725	11,575	1000
Bonn	6,713	651	7,364	512
Kassel	5,027	1,661	6,688	464
Aachen	4,512	520	5,033	249
Essen	4,011	724	4,735	520
Cologne	2,783	1,324	4,107	359
Bochum	1,740	1,629	3,369	447
Gelsenkirchen	1,905	643	2,548	177
Herne	1,534	594	2,128	117
Duesseldorf	1,674	443	2,117	283
Munich	1,681	396	2,077	154
Wiesbaden	1,572	468	2,040	147
Nuremberg	1,785	208	1,993	117
subtotal	76,862	21,916	98,778	7,209
others	36,439	13,365	51,304	4,521
Total	114,801	35,281	150,082	11,730

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

Our proven methodology ensures successful integration of the new businesses

• Hybrid bonds are generally non-dilutive, tax efficient debt instruments providing financial flexibility to corporates
• Subordinated to senior debt, unsecured and without covenants
• Provides diversification into another source of unsecured funding
• Used by an increasing number of corporates with an investment grade corporate rating as an equity substitute to enhance deleveraging
• Most of the recent corporate hybrids have achieved 50% equity credit by the ratings agencies
• IFRS accounting treatment flexibility as debt or equity
• Given the low interest rate environment and the robust hybrid debt market, hybrid bonds currently represent an attractive financing tool relative to a combination of straight equity and senior debt financing

Major financing achievements of 2013

First European residential real estate company to issue a US-Dollar bond USD 1.0 bn in Sep./Oct. 2013

First German real estate company to issue an unsecured corporate bond EUR 1.3 bn in July 2013

EUR 4.0 bn EMTN-Program set in place with the issuance of first notes of EUR 500 m EUR 3.5 bn firepower on hand remain within the EMTN-Program

Refinancing of eight portfolios amounting to more than EUR 1.7 bn - mortgaged backed Financing partners include main German Pfandbriefbanks, international insurance companies & pension funds

Hence, full and premature repayment of GRAND-CMBS

EUR 4.3 bn in July 2013 gaining full operational flexibility

Capital increase by issuing new shares within the IPO EUR 575 m in July 2013

Best-in-class financing structure to ensure full flexibility, best pricing and access to all sources in shortest time.

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% (4.680%)*	2 Oct 2023	BBB
8 years 3.625% EMTN	€500m	99.843%	3.625%	8 Oct 2021	BBB

*EUR-Equivalent re-offer yield

	3 years 2.125% Euro Bond	6 years 3.125% Euro Bond
Issuer:	Deutsche Annington Finance B.V.*	Deutsche Annington Finance B.V.*
Trade Date:	17 July 2013	17 July 2013
ISIN:	DE000A1HNTJ5	DE000A1HNW52
WKN:	A1HNTJ	A1HNW5
Listing:	Unregulated open-market segment (Freiverkehr) of the	Unregulated open-market segment (Freiverkehr) of the
	Frankfurt Stock Exchange	Frankfurt Stock Exchange
Notional Amount:	EUR 700,000,000	EUR 600,000,000
Denominations:	EUR 100,000 per Note	EUR 100,000 per Note
Issue Price:	99.793%	99.935%
Coupon:	2.125% (payable annually)	3.125% (payable annually)
First Coupon payment:	25 July 2014	25 July 2014
Maturity Date:	25 July 2016	25 July 2019
Covenants:	Total Debt / Total Assets <= 60%;	Total Debt / Total Assets <= 60%;
	Secured Debt / Total Assets <= 45%;	Secured Debt / Total Assets <= 45%;
	Interest Coverage Ratio (LTM Adjusted EBITDA to LTM	Interest Coverage Ratio (LTM Adjusted EBITDA to LTM
	Interest Expense)>=1.4x until 30-Sep-13 and 1.8x	Interest Expense)>=1.4x until 30-Sep-13 and 1.8x
	thereafter;	thereafter;
	Total Unencumbered Assets / Unsecured Debt >= 125%	Total Unencumbered Assets / Unsecured Debt >= 125%
Rating:	BBB	BBB

*The bonds are guaranteed by Deutsche Annington Immobilien SE.

	2013/17 3.20% USD-Bond	2013/23 5.00% USD-Bond	2013/21 3.625% EUR-MTN
Issuer:	Deutsche Annington Finance B.V.*	Deutsche Annington Finance B.V.*	Deutsche Annington Finance B.V.*
Trade Date:	02 October 2013	02 October 2013	08 October 2013
ISIN:	144A: US25155FAA49	144A: US25155FAB22	DE000A1HRVD5
	Reg S: USN8172PAC88	Reg S: USN8172PAD61
WKN/ CUSIP:	144A: 25155FAA4	144A: 25155FAB2	A1HRVD
	Reg S: N8172PAC8	Reg S: N8172PAD6
Listing:	no Listing	no Listing	Regulated market of the Luxembourg Stock Exchange
Notional Amount:	USD 750,000,000	USD 250,000,000	EUR 500,000,000
Denominations:	USD 50,000 per note	USD 50,000 per note	EUR 1,000 per note
Issue Price:	100.000%	98.993%	99.843%
Coupon:	3.20% (half-annually payment)	5.00% (half-annually payment)	3.625% (annually payment)
EUR-Equivalent re-offer	2.97% (half-annually payment)	4.68% (half-annually payment)	-
yield
First Coupon payment:	2 April 2014	2 April 2014	8 October 2014
Maturity Date:	2 October 2017	2 October 2023	8 October 2021
Covenants:	Total Debt / Total Assets <= 60%;	Total Debt / Total Assets <= 60%;	Total Debt / Total Assets <= 60%;
	Secured Debt / Total Assets <= 45%;	Secured Debt / Total Assets <= 45%;	Secured Debt / Total Assets <= 45%;
	Interest Coverage Ratio (LTM Adjusted EBITDA to LTM	Interest Coverage Ratio (LTM Adjusted EBITDA to LTM	Interest Coverage Ratio (LTM Adjusted EBITDA to LTM
	Interest Expense)>=1.4x until 30-Sep-13 and 1.8x	Interest Expense)>=1.4x until 30-Sep-13 and 1.8x	Interest Expense)>=1.4x until 30-Sep-13 and 1.8x
	thereafter;	thereafter;	thereafter;
	Total Unencumbered Assets / Unsecured Debt >= 125%	Total Unencumbered Assets / Unsecured Debt >= 125%	Total Unencumbered Assets / Unsecured Debt >= 125%
Rating:	BBB	BBB	BBB

* Fully and unconditionally guaranteed by Deutsche Annington Immobilien SE

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Investor Relations

Deutsche Annington Immobilien SE Philippstraße 3 44803 Bochum, Germany

Tel.: +49 234 314 1609 investorrelations@deutsche-annington.com

http://www.deutsche-annington.com