AI assistant
Vonovia SE — Call Transcript 2015
Nov 3, 2015
477_ip_2015-11-03_7f46394e-d821-488d-8733-972185a640d6.pdf
Call Transcript
Open in viewerOpens in your device viewer
9M Results Conference Call 3 November 2015 Rolf Buch, CEO Dr. A. Stefan Kirsten, CFO
Note:
This version excludes the slides on the tender offer to Deutsche Wohnen shareholders. The extended version of this presentation can be found on the transaction webpage on Vonovia's website.
Highlights - Operations
2015 guidance increased on back of strong 9M performance & faster integration of acquisitions
- FFO1 of €590m-600m (prev. €560m-580m), FFO1/share of €1.27-1.29 (prev. €1.20-1.24)
- EPRA NAV/share €29.00-30.00 (prev. €27.50-28.50)
- Adj. NAV/share (excl. goodwill) €23.50-24.50 (prev. €22.00-23.00)
- Faster integration of Gagfah leading to accelerated crystallization of synergies
Updated portfolio structure reveals potential for significant value-enhancing modernization
- Value-enhancing modernization segments grow from 28% to 50% after allocating Gagfah assets
- 2016 modernization program increasing to €430m-500m (depending on granting of construction permits)
Significant step forward in portfolio optimization through agreed sale of two portfolios
- Two large portfolio sales in NRW (~14k units) and Northern Germany (~6k units)
- Sold or agreed to sell almost 50% of non-strategic and non-core segments since Q1
LTV reduction to ~46% (pro forma year-end 2015) expected post disposals and fair value growth
2016 guidance reflects continuing positive momentum
- Rental growth of 2.8-3.0%
- FFO1 of €690m-710m (+18% y-o-y)
Prior year per share numbers TERP-adjusted
Business Strategy Unchanged since IPO
Operating Performance
Per unit data based on average number of units over the respective period Numbers include seven months of Gagfah and three months of Südewo results Fair value per sqm as per September 30, 2015 incl. Gagfah Dec. 31, 2014 Deutsche Annington portfolio only
Operating Performance (cont'd)
Per share data based on number of shares outstanding as of respective reporting dates (30 Sept. 2014: 240.2m; 31 Dec. 2014: 271.6m; 30 Sept. 2015: 466.0m) Per unit data based on average number of units over the respective period
9M 2015 numbers include seven months of Gagfah and three months of Südewo
2015 Guidance Increased
| FY 2014 (TERP-adjusted) |
Guidance 20151 (August) |
Change abs. (on midpoint) |
Change % (on midpoint) |
Guidance 20151 (November) |
|
|---|---|---|---|---|---|
| L-f-l rental growth | 2.5% | 2.6-2.8% | +15bps | +5.5% | 2.8-2.9% |
| Vacancy | 3.4% | ~3% | ~3% | ||
| Rental Income | €789.3m | €1,400-1,420m | €1,400-1,420m | ||
| FFO1 (incl. hybrid) | €286.6m | €560-580m | +€25m | +4.4% | €590-600m |
| FFO1/share eop (incl. hybrid) |
€1.00 | €1.20-1.24 | +€0.06 | +4.9% | €1.27-1.29 |
| FFO1/share eop (excl. hybrid) |
€1.00 | €1.13-€1.17 | +€0.06 | +5.2% | €1.20-€1.22 |
| EPRA NAV/share |
€23.04 | €27.50-28.50 | +€1.50 | +5.4% | €29.00-30.00 |
| NAV/share2 Adj. |
€22.67 | €22.00-23.00 | +€1.50 | +6.7% | €23.50-24.50 |
| Maintenance | €173.8m | ~€340m | -€10m | -2.9% | ~€330m |
| Modernization | €171.7m | €280-300m | +€50m | +17.2% | €330-350m |
| Privatization (#) | 2,238 | ~2,900 | ~2,900 | ||
| FMV step-up (Privatization) | 37.6% | ~30% | >30% | ||
| Non-core (#) | 1,843 | opportunistic | opportunistic | ||
| FMV step-up (Non-Core) | 10.9% | ~0% | ~0% | ||
| Dividend/share3 | €0.74 | €0.94 | €0.94 |
1 Incl. acquisitions pro rata (see p. 42); per share numbers based on 466.0 million shares currently outstanding
2 Excl. goodwill
3 To be recommended to the AGM. Going forward, the stated dividend policy of ~70% of FFO1 (Group) remains unchanged
FY 2014 is TERP-adjusted (TERP factor=1.051). FY 2014 before TERP adjustment: FFO1 Group/share=€1.06, EPRA NAV/share=€24.22, Dividend/share=€0.78 FFO 1/share avg (FY 2014 TERP adjusted=€1.12; Guidance August 2015=€1.41-1.47; Guidance November 2015=€1.49-1.52)
Gagfah and Südewo Synergies
| Development of our estimate on total run rate synergies from Gagfah and Südewo |
||||||||
|---|---|---|---|---|---|---|---|---|
| December 2014 |
June 2015 | November 2015 | ||||||
| €84m | €47m operational | €130m | €75m operational | €142m | €75m op. (Gagfah) €12m op. (Südewo) |
|||
| (only Gagfah) | €37m financial | (only Gagfah) | €55m financial | (Gagfah and Südewo) |
€55m financial | |||
| • Initial assessment based on "outside in" view |
• • |
"inside" view | Initial assessment based on Substantially higher synergies at lower one-off cost and in less time |
• • time • |
Final leg of integration process Raising of more synergies in less 86% of financial synergies already secured from 2017 onwards |
1 Includes €19m financial synergies carried over from 2015 (€19m is the annualized run rate of the €5m collected in 2015)
Vonovia's Scale and Platform Benefits Have Been Proven Multiple Times by Now
Vonovia with multi-year track record of capturing significant synergies in all acquisitions
1Standalone margin reporting of acquisitions not always fully in line with Vonovia reporting;
2Gagfah and Südewo 2015 pro forma incl. synergies
3 Pro forma excluding disposals 2015/2016
Sales Results 2015 YTD
| Privatization | ||||
|---|---|---|---|---|
| 9M 2014 | 9M 2015 | Change (€m) | Change (%) | |
| # units sold | 1,778 | 1,748 | -30.0 | -1.7 |
| Income from disposal of properties (€m) |
184.4 | 183.2 | -1.2 | -0.7 |
| Fair value disposals (€m) |
-134.9 | -133.6 | 1.3 | -1.0 |
| Adjusted profit from disposal of properties (€m) | 49.5 | 49.6 | 0.1 | 0.2 |
| Fair value step-up | 36.7% | 37.1% | +0.4pp | |
| Target ~30-35% | >30% | |||
| Non-core disposals | ||||
| 9M 2014 | 9M 2015 | Change (€m) | Change (%) | |
| # units sold | 873 | 3,574 | 2,701 | 309.4 |
| Income from disposal of properties (€m) |
28.6 | 132.4 | 103.8 | 362.9 |
| Fair value disposals (€m) |
-26.9 | -130.3 | -103.4 | 384.4 |
| Adjusted profit from disposal of properties (€m) | 1.7 | 2.1 | 0.4 | 23.5 |
| Fair value step-up | 6.6% | 1.6% | -5pp | |
| Target = 0% |
Target = 0% |
Two Significant Portfolio Transactions Agreed since September 30, 2015
| Transaction 1 | Transaction 2 | |
|---|---|---|
| Location | NRW | Northern Germany |
| No. of units | Ca. 14k | Ca. 6k |
| Vacancy rate | 6.4% | 9.4% |
| NCR | €4.84 | €4.77 |
| Expected Closing |
Q1 2016 | Q4 2015 |
- LoI signed with two separate buyers for a combined volume of ca. 20k units from the non-core and non-strategic segments
- Expected combined single digit fair market value uplift
- Disposals are in line with ongoing portfolio optimization, as underlying portfolios had a higher vacancy rate and lower NCR
- Both portfolio transactions are strategically beneficial to seller and buyer as Vonovia improves its overall portfolio quality and geographic balance while it puts the buyers in the best owner position
More details on both transactions cannot be published due to NDA
Substantial Reduction of Sales Portfolio
| | Non-strategic and Non-core (000 units) | | Expected sales volume going forward (000 units) | | | |
|---------|--------------------------------------------------------------------|-------|--------------------------------------------------|-------|-------|--|
| 49 | Q1 2015 volume of non-core + non-strategic | ~9 | | ~9 | ~9 | |
| -
4 | 1
Changes
between
Q1 and
Q3 | | | | | |
| = 45 | Q3 2015 volume of non-core + non-strategic | | | | | |
| -
12 | NRW portfolio (adj. for 2k units from operate
clusters) | | | | | |
| -
6 | Northern Germany portfolio | 2016E | | 2017E | 2018E | |
| = 27 | Pool of non-core and non-strategic units as
of November 2, 2015 | | | | | |
- Including the additional non-core and non-strategic sales agreed until 2nd Nov. 2015, the active pool of non-core and non-strategic assets going forward is c. 27k units after c. 49k as of Sep 30, 2015
- Share of non-core and non-strategic assets is down from 8% to 4% of total portfolio on a pro forma basis
- Including the contribution from privatizations, the total free cash2 from closed and agreed transactions year to date will amount to €930m
2 Gross proceeds minus debt repayment
1 Disposals and reclassifications into strategic cluster
Updated Portfolio Clustering Offers Strong Potential for Value-enhancing Modernization
| Residential units |
In-place rent (€/sqm residential) |
Vacancy | Share in terms of FV |
||
|---|---|---|---|---|---|
| Operate | 192,106 | 5.64 | 2.5% | 56% | |
| Optimize apartments | 36,849 | 6.19 | 2.5% | 13% | |
| 51 1 0 |
Upgrade buildings | 49,411 | 5.69 | 2.6% | 15% |
| 2 2 |
Strategic | 278,366 | 5.72 | 2.5% | 84% |
| Q | Non-Strategic | 31,676 | 4.81 | 6.9% | 6% |
| Privatize | 21,477 | 5.60 | 4.7% | 7% | |
| Non-core | 16,697 | 4.50 | 11.4% | 2% | |
| Total | 348,216 | 5.58 | 3.5% | 100% |
| Residential units |
In-place rent (€/sqm residential) |
Vacancy | Share in terms of FV |
||
|---|---|---|---|---|---|
| 2 a) |
Operate | 121,308 | 5.99 | 2.5% | 38% |
| m r o |
Optimize apartments | 89,841 | 5.83 | 2.1% | 27% |
| o f r |
Upgrade buildings | 86,649 | 5.61 | 3.1% | 23% |
| p 5 ( |
Strategic | 297,798 | 5.83 | 2.6% | 88% |
| 1 0 |
Non-Strategic | 14,220 | 4.70 | 8.5% | 2% |
| 2 3 |
Privatize | 22,606 | 5.75 | 4.5% | 8% |
| Q | Non-core | 12,544 | 4.53 | 10.1% | 2% |
| Total | 347,168 | 5.74 | 3.2% | 100% |
In-depth portfolio review of Gagfah portfolio has identified further value-enhancing organic growth potential for both individual apartments and buildings
Modernization segments significantly increasing from 28% to 50% of total fair value
1 Excluding Südewo portfolio; Gagfah strategic portfolio only in operate without breakdown into optimize apartments and upgrade buildings
2 Including Südewo and allocation of strategic Gagfah portfolio into optimize apartments and upgrade buildings; excluding agreed portfolio sales
50%
Portfolio KPIs by Segments (Q3 2015 pro forma)
| Cluster Vonovia Forecast |
Residential units | in-place rent (€/sqm residential) |
new letting rent (€/sqm residential in 2015) |
Vacancy | Fair Value in m€ |
Share in terms of FV |
Fair Value [€/sqm] |
Multiple in-place rent |
Share rent controlled |
|---|---|---|---|---|---|---|---|---|---|
| Operate | 121,308 | 5.99 | 6.62 | 2.5% | 8,367 | 38% | 1,101 | 15.0 | 25.9% |
| Optimise apartments |
89,841 | 5.83 | 6.61 | 2.1% | 6,038 | 27% | 1,154 | 16.8 | 1.9% |
| Upgrade buildings | 86,649 | 5.61 | 6.40 | 3.1% | 5,197 | 23% | 1,032 | 15.8 | 13.1% |
| Strategic | 297,798 | 5.83 | 6.55 | 2.6% | 19,602 | 88% | 1,033 | 14.8 | 14.9% |
| Non-Strategic | 14,220 | 4.70 | 4.72 | 8.5% | 554 | 2% | 597 | 11.4 | 13.1% |
| Privatise | 22,606 | 5.75 | 6.49 | 4.5% | 1,670 | 8% | 1,123 | 16.9 | 5.2% |
| Non-Core | 12,544 | 4.53 | 4.85 | 10.1% | 398 | 2% | 507 | 10.4 | 13.7% |
| Total | 347,168 | 5.74 | 6.36 | 3.2% | 22,224 | 100% | 1,000 | 14.7 | 14.2% |
Including Südewo and allocation of strategic Gagfah portfolio into optimize apartments and upgrade buildings; excluding agreed portfolio sales
Portfolio KPIs by Top 25 Cities (Q3 2015 pro forma)
| VONOVIA | |
|---|---|
| ---------------- | -- |
| City | Residential units | In-place rent (€/sqm residential) |
New letting rent (€/sqm residential in 2015) |
Vacancy rate | Fair Value (€m) |
Share in terms of FV |
Fair Value (€/sqm) |
Multiple in place rent |
Share rent controlled |
|---|---|---|---|---|---|---|---|---|---|
| Berlin | 30,613 | 5.76 | 7.11 | 1.6% | 2,166 | 10% | 1,097 | 15.8 | 9.6% |
| Dresden | 37,919 | 5.25 | 5.97 | 3.1% | 2,047 | 9% | 899 | 14.5 | 0.0% |
| Frankfurt am Main | 11,753 | 7.60 | 9.35 | 1.2% | 1,128 | 5% | 1,541 | 16.9 | 1.8% |
| Hamburg | 10,988 | 6.39 | 8.23 | 1.1% | 982 | 4% | 1,368 | 17.4 | 18.4% |
| Dortmund | 19,486 | 5.04 | 5.68 | 2.8% | 933 | 4% | 776 | 13.0 | 16.5% |
| Munich | 5,196 | 6.79 | 9.32 | 0.5% | 731 | 3% | 2,047 | 23.9 | 42.9% |
| Essen | 12,157 | 5.37 | 5.67 | 4.9% | 626 | 3% | 796 | 12.7 | 15.9% |
| Cologne | 6,367 | 7.01 | 7.99 | 1.4% | 624 | 3% | 1,368 | 16.2 | 10.5% |
| Bremen | 11,103 | 5.11 | 5.49 | 4.0% | 597 | 3% | 858 | 14.3 | 26.0% |
| Kiel | 11,986 | 5.31 | 5.89 | 1.5% | 588 | 3% | 809 | 12.7 | 34.9% |
| Stuttgart | 4,644 | 8.04 | 9.99 | 1.1% | 540 | 2% | 1,788 | 18.4 | 25.6% |
| Hanover | 7,227 | 6.02 | 6.62 | 1.9% | 478 | 2% | 1,011 | 14.0 | 22.4% |
| Bonn | 5,187 | 6.40 | 7.04 | 2.2% | 458 | 2% | 1,246 | 16.4 | 25.8% |
| Dusseldorf | 3,521 | 7.23 | 8.32 | 3.0% | 356 | 2% | 1,443 | 16.4 | 19.7% |
| Bochum | 7,549 | 5.36 | 5.72 | 2.8% | 338 | 2% | 772 | 12.2 | 9.4% |
| Wiesbaden | 2,620 | 7.73 | 8.54 | 3.1% | 281 | 1% | 1,516 | 16.2 | 6.0% |
| Freiburg im Breisgau | 2,711 | 6.69 | 7.94 | 1.1% | 255 | 1% | 1,376 | 16.9 | 23.9% |
| Duisburg | 5,547 | 5.15 | 5.55 | 5.3% | 252 | 1% | 724 | 12.0 | 3.4% |
| Heidenheim an der Brenz | 3,997 | 5.95 | 6.26 | 5.3% | 230 | 1% | 926 | 13.3 | 9.0% |
| Osnabrück | 3,915 | 5.39 | 6.09 | 3.9% | 216 | 1% | 857 | 13.6 | 18.4% |
| Bielefeld | 4,488 | 5.03 | 5.47 | 2.3% | 205 | 1% | 683 | 11.4 | 31.9% |
| Nürnberg | 2,469 | 6.24 | 7.26 | 0.7% | 199 | 1% | 1,180 | 15.9 | 6.1% |
| Gelsenkirchen | 4,654 | 4.71 | 5.01 | 6.7% | 192 | 1% | 622 | 11.7 | 7.0% |
| Mannheim | 2,535 | 6.44 | 7.36 | 3.2% | 189 | 1% | 1.121 | 14.8 | 10.6% |
| Karlsruhe | 1,617 | 6.87 | 7.71 | 1.3% | 173 | 1% | 1.486 | 17.4 | 18.1% |
| Subtotal TOP 25 | 220,249 | 5.83 | 6.56 | 2.6% | 14.784 | 67% | 1.053 | 15.1 | 14.4% |
| Remaining Cities | 126,919 | 5.58 | 6.06 | 4.3% | 7.441 | 33% | 908 | 13.9 | 13.9% |
| Total | 347.168 | 5.74 | 6.36 | 3.2% | 22.224 | 100% | 1.000 | 14.7 | 14.2% |
Sorting by Fair Value. Including Südewo and allocation of strategic Gagfah portfolio into optimize apartments and upgrade buildings; excluding agreed portfolio sales.
Modernization Program as Important Value Driver
Significant Fair Value Growth Expected for End of 2015
| Value driver | Fair value growth* |
|---|---|
| Operating performance (rent, redemption of rent control, etc.) |
€250-300m |
| Investments (effects of modernization program) | €330-350m |
| Market development / yield compression |
€900-1,050m |
| Total | €1,500-1,700m |
* Represents the recent forecast of Vonovia calculations and expected value growth for year-end 2015 valuation as compared to previous valuation. The value is subject to change during the ongoing valuation process.
Maturity Profile and Financing Sources
Debt structure as of September 30, 2015
KPIs as of September 30, 2015 KPIs as of September 30, 2015
| Current | Target | |
|---|---|---|
| LTV | 50.0% | <50% |
| Unencumbered assets in % |
38.9% | ≥ 50% |
| Global ICR | 3.0x | Ongoing opt imizat ion |
| Financing Cost | 2.9% | wit h most economic f unding |
- Current maturity of around 7 years
- Refinancing of €1.9bn to increase unencumbrance
Forward Hedging Increased Certainty
New allocation of interest rate risk … Standardized market-instruments have been used
Closed forward hedges in the total amount of EUR 2.7bn assure 86% of the financial synergies of the Gagfah transaction as promised for 2017
- The remaining 14% will be realized by opportunities within the riskspreads of the liquidity instruments and/ or additional projects
- On the back of these measures our financing costs will decrease to approximately 2.3% from 2017
2016 Stand-alone Guidance Demonstrates Increasingly Positive Momentum
| VONOVIA | |||
|---|---|---|---|
| Guidance 20151 (November) |
Change abs. (on midpoint) |
Change % (on midpoint) |
Guidance 2016 (November) |
|
|---|---|---|---|---|
| L-f-l rental growth | 2.8-2.9% | +5bps | +1.8% | 2.8-3.0% |
| Vacancy | ~3% | ~3% | ||
| Rental Income | €1,400-1,420m | +€100m | +7.1% | €1,500-1,520m |
| FFO1 (incl. hybrid) | €590-600m | +€105m | +17.6% | €690-710m |
| FFO1/share eop (incl. hybrid) |
€1.27-1.29 | +€0.22 | +17.1% | €1.48-1.52 |
| FFO1/share eop (excl. hybrid) |
€1.20-€1.22 | +€0.20 | +16.5% | €1.39-€1.44 |
| EPRA NAV/share |
€29.00-30.00 | +€1.00 | +3.4% | €30.00-31.00 |
| Adj. NAV/share2 |
€23.50-24.50 | +€0.50 | +2.1% | €24.00-25.00 |
| Maintenance | ~€330m | - | - | ~€330m |
| Modernization | €330-350m | +€130m | +38.2% | €430-500m3 |
| Privatization (#) | ~2,900 | -500 | -17.2% | ~2,400 |
| FMV step-up (Privatization) | >30% | ~30% | ||
| Non-core (#) | opportunistic | opportunistic | ||
| FMV step-up (Non-Core) |
~0% | ~0% | ||
| Dividend/share4 | €0.94 | ~70% of FFO1 |
1 Incl. acquisitions pro rata (see p. 42); per share numbers based on 466.0 million shares currently outstanding
2Excl. goodwill
3Modernization volume beyond €430m in 2016 guidance depends on availability of building permits
4 To be recommended to the AGM. Going forward, the stated dividend policy of ~70% of FFO1 (Group) remains unchanged
Guidance 2016 is excluding impacts from potential tender offer for Deutsche Wohnen shares
FFO Bridge 2015E to 2016E
3 9 3 6 7 7 777 595 2016 FFO1 before disposals Two more months Gagfah Midpoint FFO1 guidance 2015 2016E FFO1 690-710 Disposals ~77 Others ~10 Rent growth ~40 Six more Synergies months Südewo €1.50 FFO1/share (midpoint) €1,400 rental €43m Gagfah income @ 2.9% operational (€55m total minus €12m realized in 2015) €32m Gagfah financial (€37m total minus €5m realized in 2015; €19m run rate of €5m realized in 2015, €18m realized in 2016) €2m Südewo Q3 2015 LTV 50% Q4 2016 LTV <46% €m
| €bn | Sep. 30, 2015 | Operational effects Q4 |
Valuation effect |
Portfolio Sales |
Dec. 31, 2015 pro forma incl. expected valuation uplift and disposals |
|---|---|---|---|---|---|
| Non-derivative financial liabilities | 12.2 | -0.3 | -0.2 | 11.8 | |
| Foreign currency effects |
-0.2 | -0.2 | |||
| Cash and cash equivalents | -0.5 | +0.2 | -0.5 | -0.8 | |
| Adjusted net debt | 11.6 | -0.1 | -0.7 | 10.8 | |
| FV of Vonovia portfolio1 |
23.1 | 23.1 | |||
| Disposals | -0.3 | -0.7 | -0.9 | ||
| Valuation growth2 | +1.3 | +1.3 | |||
| Fair value of Vonovia portfolio |
23.1 | -0.3 | +1.3 | -0.7 | 23.5 |
| LTV | 50.0% | c. 50% | c. 48% | c. 46% | c. 46% |
1 Incl. capitalized modernization investments
2 Excl. capitalized modernization investments (see p. 16)
Including debt hybrid
Numbers include rounding effects
Summary Operations
- Underlying business performance remains strong with increasing momentum, as reflected in raised-again 2015 guidance as well as in new 2016 stand-alone guidance
- Completed portfolio management structure provides ample opportunity for organic value-enhancing growth
- Disposals of non-strategic and non-core assets improve overall portfolio quality and generate substantial free cash flow
- LTV reduction to ~46% expected by year-end 2015 (pro forma and including impact from agreed sales)
APPENDIX
KPI Definitions
| Description | Calculation | |
|---|---|---|
| FFO1 | FFO1 is calculated as the profit or loss for the period adjusted for sales-related, non-recurring, non-cash or similar items. It approximates the sustainable, recurring operating cash flow to the Group before payments to equity hybrid investors and minorities. This FFO1 is not determined on the basis of a specific international reporting standard but is to be regarded as a supplement to other performance indicators determined in accordance with IFRS. The FFO1 per share is calculated on the basis of all outstanding, dividend-bearing shares. |
IFRS profit or loss for the period adjusted by • the profit or loss from sales • the effects from property held for sale • specific effects which do not relate to the period, are non-recurring or do not relate to the objective of the Company • the net income from fair value adjustments of investment properties, • depreciation and amortization • deferred and prior-year current taxes (tax expenses/income), • transaction costs • prepayment penalties and commitment interest • valuation effects on financial instruments • the unwinding of discounting for provisions, particularly pension provisions • and other prior-year interest expenses • income that is not of a long-term nature |
| EPRA NAV |
EPRA NAV is used as an indicator of the Group's long-term equity and is calculated according to EPRA's Best Practice Recommendations. The adjusted NAV represents the EPRA NAV less goodwill. |
Group equity (including goodwill), + deferred taxes on properties and assets held for sale + fair value of derivative financial instruments - deferred taxes on derivative financial instruments |
| LTV | The LTV shows the ratio of net debt (excluding equity hybrid) to property value. | + Non-derivative financial liabilities (excluding equity hybrid) - Foreign currency effects - Cash and cash equivalents = Net debt + Fair value of investment property + Fair value of trading properties and assets held for sale + Fair value of properties used by the Group = Fair value |
| DAIG | DeWAG | Vitus | Gagfah | Franconia | Südewo | |
|---|---|---|---|---|---|---|
| 9M 2014 | 9 months | 6 months | - | - | - | - |
| FY 2014 | 12 months | 9 months | 3 months | - | - | - |
| 9M 2015 | 9 months | 9 months | 9 months | 7 months | 6 months | 3 months |
| FY 2015 Guidance | 12 months | 12 months | 12 months | 10 months | 9 months | 6 months |
| FY 2016 Guidance | 12 months | 12 months | 12 months | 12 months | 12 months | 12 months |
9M 2015 Key Figures
| €m | 9M 2015 | 9M 2014 | Change (€) | Change (%) |
|---|---|---|---|---|
| Residential units (k) |
366,918 | 183,983 | 182,935 | 99.4 |
| Rental income | 1,019.4 | 572.7 | 446.7 | 78.0 |
| Vacancy rate (%) |
3.4 | 3.6 | -0.2 | -0.2 pp |
| Monthly in-place rent/ sqm (like-for-like, €) |
5.77 | 5.61 | 0.16 | 2.9 |
| Adjusted EBITDA Rental | 699.8 | 364.5 | 335.3 | 92.0 |
| Adjusted EBITDA Rental /unit (€) |
2,209 | 2,017 | 192.1 | 9.5 |
| Income from disposal of properties | 315.6 | 213.0 | 102.6 | 48.2 |
| Adjusted EBITDA Sales | 34.1 | 35.7 | -1.6 | -4.5 |
| Adjusted EBITDA | 733.9 | 400.2 | 333.7 | 83.4 |
| FFO1 | 432.2 | 205.0 | 227.2 | 110.8 |
| FFO2 | 466.3 | 240.7 | 225.6 | 93.7 |
| FFO1 before maintenance |
600.0 | 311.4 | 288.6 | 92.7 |
| AFFO | 351.5 | 188.4 | 163.1 | 86.6 |
| Fair value market properties3 | 23,148.7 | 12,759.1 | 10,389.6 | 81.4 |
| EPRA NAV3 | 12,662.4 | 6,578.0 | 6,084.4 | 92.5 |
| (%)4 LTV |
50.0 | 49.7 | 0.3 | 0.3 pp |
| 1 FFO1/ share (€) |
0.93 | 0.81 | 0.12 | 14.2 |
| 2 EPRA NAV / share (€) |
27.17 | 23.04 | 4.13 | 17.9 |
1 Based on the number of shares as of the reporting date: 09/30/2015: 466.0m and 09/30/2014: 240.2m. 9M 2014 TERP-adjusted.
2 NAV / share based on the number of outstanding shares as of the reporting date: 09/30/2015: 466.0m and 12/31/2014: 271.6m. Number as of 31 Dec 2014 TERP-adjusted. 3 09/30/2015 vs. 12/31/2014
4 LTV at 12/31/2014 adjusted for effects of capital measures
| €m | 9M 2015 | 9M 2014 | Change (€m) | Change (%) | Comments |
|---|---|---|---|---|---|
| Income from property letting | 1,470.3 | 823.5 | 646.8 | 78.5 | Increase mainly acquisition-related (residential units 367k |
| Rental income | 1,019.4 | 572.7 | 446.7 | 78.0 | vs 184k), additionally in-place rent on a like-for-like basis increased by 2.9% |
| Ancillary costs | 450.9 | 250.8 | 200.1 | 79.8 | Increase mainly reflects increased portfolio size, additionally vacancy rate decreased by 0.2pp |
| Other income from property management | 21.3 | 13.2 | 8.1 | 61.4 | |
| Income from property management | 1,491.6 | 836.7 | 654.9 | 78.3 | Slight increase due to higher Non-core Sales volume, partially offset by slightly lower Non-core Step-up |
| Income from sale of properties | 315.6 | 213.0 | 102.6 | 48.2 | |
| Carrying amount of properties sold | -288.9 | -180.6 | -108.3 | 60.0 | Major market developments and measurement parameters that have an impact on Vonovia's fair values are assessed |
| Revaluation of assets held for sale | 24.4 | 16.5 | 7.9 | 47.9 | every quarter. Since a sufficient valid set of data was not yet available for major measurement parameters as of |
| Profit on disposal of properties | 51.1 | 48.9 | 2.2 | 4.5 | September 30, 2015, no adjustment was made to the fair values in the third quarter of 2015. |
| Net income from fair value adjustments of investment properties | 0.0 | 26.9 | -26.9 | -100.0 | |
| Capitalized internal modernization expenses | 115.1 | 59.8 | 55.3 | 92.5 | 2015 increase reflects larger portfolio size and in-sourcing effect of craftsmen organization |
| Cost of materials | -683.0 | -382.7 | -300.3 | 78.5 | Increase mainly acquisition-related |
| Expenses for ancillary costs | -439.0 | -246.6 | -192.4 | 78.0 | |
| Expenses for maintenance | -169.7 | -100.7 | -69.0 | 68.5 | |
| Other costs of purchased goods and services | -74.3 | -35.4 | -38.9 | 109.9 | Ramp-up from 3,436 to 6,125 employees leads to increased personnel expenses which primarily result from Gagfah merger & TGS growth |
| Personnel expenses | -234.5 | -130.2 | -104.3 | 80.1 | |
| Depreciation and amortisation | -7.3 | -5.1 | -2.2 | 43.1 | Increase mainly due to acquisitions (Gagfah and Südewo) |
| Other operating income | 60.1 | 34.7 | 25.4 | 73.2 | and increased recurring income / cost reimbursements |
| Other operating expenses | -171.8 | -110.7 | -61.1 | 55.2 | Increase mainly related to additional expenses of |
| Financial income | 3.5 | 4.2 | -0.7 | -16.7 | acquisitions as well as consulting and audit fees for Gagfah merger, other effects comprise vehicle and |
| Financial expenses | -300.2 | -206.7 | -93.5 | 45.2 | travelling costs which mainly increased due to insourcing |
| Profit before tax | 324.6 | 175.8 | 148.8 | 84.6 | Strongly impacted by additional financings as a result of |
| Income tax | -131.1 | -53.8 | -77.3 | 143.7 | acquisitions and by transaction costs for Gagfah deal financing |
| Current income tax | -15.4 | 5.5 | - | - | |
| Other (incl. deferred tax) | -115.7 | -59.3 | -56.4 | 95.1 | |
| Profit for the period | 193.5 | 122.0 | 71.5 | 58.6 |
Q3 Results Presentation, 03 November 2015 Page 27
EBITDA
| Bridge to Adjusted EBITDA (€m) |
9M 2015 |
9M 2014 |
Change (€) |
Change (%) |
|---|---|---|---|---|
| Profit for the period | 193.5 | 122.0 | 71.5 | 58.6 |
| Net interest result | 297.8 | 203.4 | 94.4 | 46.4 |
| Income taxes | 131.1 | 53.8 | 77.3 | 143.7 |
| Depreciation | 7.3 | 5.1 | 2.2 | 43.1 |
| Net income from fair value adjustments of investment properties |
0 | -26.9 | NA | NA |
| EBITDA IFRS | 629.7 | 357.4 | 272.3 | 76.2 |
| Non-recurring items |
103.6 | 40.5 | 63.1 | 155.8 |
| Period adjustments | 0.6 | 2.3 | -1.7 | -73.9 |
| Adjusted EBITDA | 733.9 | 400.2 | 333.7 | 83.4 |
| Adjusted EBITDA Rental | 699.8 | 364.5 | 335.3 | 92.0 |
| Adjusted EBITDA Sales | 34.1 | 35.7 | -1.6 | -4.5 |
| Rental Segment (€m) | 9M 2015 |
9M 2014 |
Change (€) |
Change (%) |
|---|---|---|---|---|
| Average number of units over the period | 316,735 | 180,685 | 136,050 | 75.3 |
| Rental income | 1,019.4 | 572.7 | 446.7 | 78.0 |
| Maintenance | -167.8 | -106.4 | -61.4 | 57.7 |
| Operating costs |
-151.8 | -101.8 | -50.0 | 49.1 |
| Adjusted EBITDA Rental | 699.8 | 364.5 | 335.3 | 92.0 |
| Sales Segment (€m) |
9M 2015 |
9M 2014 |
Change (€) |
Change (%) |
|---|---|---|---|---|
| Number of units sold |
5,322 | 2,651 | 2,671 | 100.8 |
| Income from disposal of properties |
315.6 | 213.0 | 102.6 | 48.2 |
| Carrying amount of properties sold | -288.9 | -180.6 | -108.3 | 60.0 |
| Revaluation of assets held for sale | 24.4 | 16.5 | 7.9 | 47.9 |
| Profit on disposal of properties (IFRS) |
51.1 | 48.9 | 2.2 | 4.5 |
| Revaluation (realized) of assets held for sale | -24.4 | -16.5 | -7.9 | 47.9 |
| Revaluation from disposal of assets held for sale |
25.0 | 18.8 | 6.2 | 33.0 |
| Adjusted profit from disposal of properties |
51.7 | 51.2 | 0.5 | 1.0 |
| Selling costs | -17.6 | -15.5 | -2.1 | 13.5 |
| Adjusted EBITDA Sales | 34.1 | 35.7 | -1.6 | -4.5 |
- EBITDA increase driven by rental business
- Adjusted EBITDA Rental reflects acquisitions as well as operational performance
- Adjusted EBITDA Sales slightly below previous year level: higher Non-core sales volumes offset by lower Non-core step-ups, also higher selling costs due to increased sales volumes
FFO
| Actuals | Change | ||||
|---|---|---|---|---|---|
| 9M 2015 | 9M 2014 | €m | % | ||
| €m | |||||
| Adjusted EBITDA | 733.9 | 400.2 | 333.7 | 83.3% | |
| (-) Interest expense FFO | -251.8 | -153.5 | -98.3 | 64.4% | |
| (-) Current income taxes | -15.8 | -6.0 | -9.8 | 163.3% | |
| (=) FFO2 | 466.3 | 240.7 | 225.6 | 93.7% | |
| (-) Adjusted EBITDA Sales |
-34.1 | -35.7 | 1.6 | -4.5% | |
| (=) FFO1 | 432.2 | 205.0 | 227.2 | 110.8% | |
| thereof attributable to shareholders | 409.3 | 205.0 | 204.3 | 99.7% | |
| thereof attributable to equity hybrid investors | 22.9 | - | - | - | |
| (-) Capitalized maintenance | -80.7 | -16.6 | -64.1 | 386.1% | |
| (=) AFFO | 351.5 | 188.4 | 163.1 | 86.6% | |
| (+) Capitalized maintenance | 80.7 | 16.6 | 64.1 | 386.1% | |
| (+) Expenses for maintenance | 167.8 | 106.4 | 67.0 | 63.0% | |
| (=) FFO1 excl. maintenance | 600.0 | 311.4 | 298.5 | 95.9% |
Maintenance and Modernization
| Maintenance and modernization (€m) | 9M 2015 | 9M 2014 | Change (€m) | Change (%) | |
|---|---|---|---|---|---|
| Maintenance expenses | 167.8 | 106.4 | 61.4 | 57.7 | |
| Capitalized Maintenance | 81.3 | 16.9 | 64.4 | 381.1 | |
| Modernization work | 219.0 | 120 | 99.0 | 82.5 | |
| Total cost of modernization and maintenance |
468.1 | 243.3 | 224.8 | 92.4 | |
| Thereof sales of own craftmen's organisation |
274.1 | 129.8 | 144.3 | 111.2 | |
| Thereof bought-in services | 194.0 | 113.5 | 80.5 | 70.9 | |
| Modernization and maintenance / sqm (€) |
23.67 | 21.07 | 2.6 | 12.4 |
Comments
Compared to 9M 2014 significant increase due to measures in Gagfah Portfolio
Modernization program mainly addressing investments in buildings or apartments regarding energy efficiency, senior living and highstandard refurbishments
Compared to 9M 2014, revenues of in-house craftsmen organisation increased significantly due to successful TGS implementation and increased portfolio size
Maintenance & Modernization Development
Balance Sheet
| €m | Sep 30, 2015 |
Dec 31, 2014 | Comments | |
|---|---|---|---|---|
| Investment Properties | 23,018.2 | 12,687.2 | Increase driven by Gagfah acquisition € 8,184.8m, SÜDEWO acquisition € |
|
| Other non-current assets | 2,938.5 | 292.8 | 1,742.1m as well as the "Franconia" acquisition € 298.1m |
|
| Total non-current assets | 25,956.7 | 12,980.0 | Increase mainly driven by Gagfah acquisition |
|
| Cash and cash equivalents | 512.2 | 1,564.8 | Preliminary Goodwill of € 2,192.4m (Gagfah) and € 338.2m (Südewo) included |
|
| Other financial assets | 2.0 | |||
| Other current assets | 318.9 | 212.4 | Decrease basically driven by cash consideration Gagfah € 2,022.5m |
|
| Total current assets | 831.1 | 1,779.2 | ||
| Total Assets | 26,787.8 | 14,759.2 | ||
| Total equity attributable to DA shareholders | 9,853.7 | 4,932.6 | ||
| Equity attributable to hybrid capital investors | 1,031.5 | 1,001.6 | Capital increase of € 5,011.2m included |
|
| Non-controlling interests | 176.5 | 28.0 | ||
| Total equity | 11,061.7 | 5,962.2 | Increase of non controlling interest by consolidation of Gagfah €139.3m |
|
| Provisions | 575.5 | 422.1 | ||
| Trade payables | 0.9 | 1.0 | ||
| Non derivative financial liabilities | 11,323.1 | 6,539.5 | ||
| Derivative financial liabilities | 139.9 | 54.5 | Increase driven by consolidation of Gagfah, as well as issuing EMTN Bonds of | |
| Liabilities from finance leases | 94.5 | 88.1 | € 1.0bn. |
|
| Liabilities to non-controlling interests | 38.2 | 46.3 | ||
| Other liabilities | 29.7 | 8.6 | ||
| Deferred tax liabilities | 1,897.1 | 1,132.8 | ||
| Total non-current liabilities | 14,098.9 | 8,292.9 | Increase generally driven by Gagfah acquisition € 455.2m and by Südewo |
|
| Provisions | 379.7 | 211.3 | acquisition €227.1m | |
| Trade payables | 93.8 | 51.5 | ||
| Non derivative financial liabilities | 909.2 | 125.3 | ||
| Derivative financial liabilities | 122.8 | 21.9 | ||
| Liabilitiesfrom finance leases | 4.8 | 4.4 | ||
| Liabilities to non-controlling interests | 8.0 | 7.5 | ||
| Other liabilities | 108.9 | 82.2 | ||
| Total current liabilities | 1,627.2 | 504.1 | ||
| Total liabilities | 15,726.1 | 8,797.0 | ||
| Total equity and liabilities | 26,787.8 | 14,759.2 |
| Actuals | Change | |||
|---|---|---|---|---|
| €m | September 30, 2015 |
December 31, 2014 |
€m | % |
| Equity attributable to shareholders |
9,853.7 | 4,932.6 | 4,921.1 | 99.8 |
| Deferred taxes on investment property/ properties for sale |
2,697.6 | 1,581.0 | 1,116.6 | 70.6 |
| Fair value of derivative financial instruments1 | 150.5 | 88.1 | 62.4 | 70.8 |
| Deferred taxes on derivative financial instruments | -39.4 | -23.7 | -15.7 | 66.2 |
| EPRA NAV | 12,662.4 | 6,578.0 | 6,084.4 | 92.5 |
| Goodwill | -2,636.6 | -106.0 | -2,530.6 | na |
| Adjusted NAV | 10,025.8 | 6,472.0 | 3,553,8 | 54.9 |
| 2 EPRA NAV per share (€) |
27.17 | 23.04 | 4.13 | 17.9 |
| 2 Adjusted NAV per share (€) |
21.51 | 22.67 | -1.16 | -5.1 |
1 Adjusted for effects from cross-currency swaps
2 Based on number of shares outstanding as of respective reporting dates (31 Dec. 2014: 271.6m; 30 Sept. 2015: 466.0m). 31 Dec 2014 numbers TERP-adjusted.
Goodwill
| Actuals | |||
|---|---|---|---|
| €m | Sep. 30, 2015 |
Dec. 31, 2014 | |
| Goodwill DeWAG | 10.7 | 10.7 | |
| Goodwill Vitus | 95.3 | 95.3 | |
| Goodwill Gagfah | 2,192.4 | - | |
| Goodwill Südewo | 338.2 | - | |
| Total Goodwill (as of reporting date) | 2,636.6 | 106.0 |
Bond and Rating KPIs as per September 30, 2015
| Covenant | Level | Actual |
|---|---|---|
| LTV | ||
| Total Debt / Total Assets |
<60% | 46% |
| Secured LTV |
||
| Secured Debt / Total Assets |
<45% | 28% |
| ICR | ||
| LTM1 EBITDA / LTM Interest Expense |
>1.80x | 2.89x |
| Unencumbered Assets |
||
| Unencumbered Assets / Unsecured Debt |
>125% | 260% |
| Rating KPIs | Covenant | Level |
|---|---|---|
| Debt to Capital |
||
| Total Debt / Total Equity + Total Debt |
<60% | |
| ICR | ||
| LTM1 EBITDA / LTM Interest Expense |
>1.80% |
1 LTM = last 12 months
Bond KPIs
Development of Unencumbrance Ratio
- Unencumbrance ratio dropped from 50% pre GAGFAH down to 32% including GAGFAH
- S&P provides up to 18 months (i.e. 30 Sept 2016) to reach 50% unencumbrance ratio
Evolution of Average Interest Costs/ Interest Rate Sensitivity
Evolution of average interest costs
- Reduction of average interest costs since 2012, with extended and smoothened maturity profile at the same time
- Balanced mix of secured and unsecured refinancing sources to reduce risk and maximise funding options
-
Included a €700m Hybrid with 4.6% coupon to our capital structure for the 2014 acquisitions instead of convertibles to avoid FFO dilution
-
Further optimization of capital structure as well as debt profile in terms of costs and maturity. Focus is on more than minimizing the average interest costs. Also considering the optimal product mix, the overall economic benefit and the shareholder interests to support long term growth.
- Next goal is to reduce the refinancing volume for 2018
Bonds / Rating
Corporate Investment grade rating as of 2015-09-30
| Rating agency | Rating | Outlook | Last Update |
|---|---|---|---|
| Standard & Poor's | BBB+ | Stable | 10 Mar 2015 |
Bond ratings as of 2015-09-30
| Amount | Issue price | Coupon | Final 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% | 3.200% | |||||
| Yankee Bond | USD 750m | 100.000% | (2.970%)* | 2 Oct 2017 | BBB+ | |
| 10 years 5.000% | 5.000% 98.993% (4.580%)* |
2 Oct 2023 | ||||
| Yankee Bond | USD 250m | BBB+ | ||||
| 8 years 3.625% | € 500m | 99.843% | 3.625% | 8 Oct 2021 | BBB+ | |
| EMTN (Series No. 1) | ||||||
| 60 years 4.625% | € 700m | 99.782% | 4.625% 8 Apr 2074 |
BBB- | ||
| Hybrid Bond | ||||||
| 8 years 2.125% | € 500m | 99.412% | 2.125% | 9 July 2022 | BBB+ | |
| EMTN (Series No. 2) | ||||||
| perpetual 4% | € 1,000m | 100.000% | 4.000% | perpetual | BBB- | |
| Hybrid Bond | ||||||
| 5 years 0.875% | € 500m | 99.263% | 0.875% | 30 Mar 2020 | BBB+ | |
| EMTN (Series No. 3) | ||||||
| 10 years 1.500% | € 500m | 98.455% | 1.5000% | 31 Mar 2025 | BBB+ | |
| EMTN (Series No. 4) |
* EUR-equivalent re-offer yield
| Name | Amount | Coupon | Final Maturity Date |
|---|---|---|---|
| German Residential Funding 2013-1 Limited | € 1,865m | 2.80% | 27 Aug 2018 |
| German Residential Funding 2013-2 Limited | € 682m | 2.67% | 27 Nov 2018 |
| Taurus 2013 (GMF1) PLC | €1,035m | 3.35% | 21 May 2018 |
Expected prepayment fees for early CMBS redemption (€ m)
| IPD | GRF-1 | GRF-2 | WOBA |
|---|---|---|---|
| Feb 2016 | 75.5 | 28.5 | 50.5 |
| May 2016 | 67.0 | 25.6 | 14.6 |
| Aug 2016 | 27.2 | 22.6 | 10.6 |
| Nov 2016 | 19.8 | 10.1 | 6.7 |
| Feb 2017 | 12.9 | 7.6 | 2.8 |
| May 2017 | 6.3 | 5.3 | 1.4 |
| Aug 2017 | 2.9 | 2.9 | 0.1 |
| Nov 2017 | 0.6 | 1.2 | 0.0 |
| Feb 2018 | 0.0 | 0.4 | 0.0 |
| May 2018 | 0.0 | 0.0 | 0.0 |
| Aug 2018 | 0.0 | 0.0 | na |
| Nov 2018 | na | 0.0 | na |
Hedge break costs not considered.
Values may differ in case of deviation from sales plan.
Portfolio Management Strategy
Portfolio Management Strategy
Value-driven asset management approach in locations with above-average development potential
Operate: rent growth, vacancy reduction, effective and sustainable maintenance spending and cost savings.
Q3 Results Presentation, 03 November 2015 Page 40 STRATEGIC NON STRATEGIC Privatize/ Non-core Upgrade buildings: comprehensive investments with a focus on energy efficiency Optimize apartments: selective investments in individual flats (focus on senior living and high-end modernization in strong markets that allow a rental premium for fully refurbished apartments)
Locations and assets that do not form an integral part of Vonovia's strategy. Mostly average location and asset quality with stable cash flows. Under permanent review.
Privatize: opportunistic retail sales at attractive premiums above current valuation Non-core: portfolio optimization through sale of assets that have limited development potential in terms of condition and/or location
FFO Build-up
Dividend policy: ~70% of FFO1
Without operating FFO growth and after 2015, excl. disposals 2015 guidance incl. pro rata contribution of acquisitions: Gagfah (10 months), Franconia (9 months), Südewo (6 months) Based on number of outstanding shares per 31 Dec. 2014 = 271.6m and current = 466.0m
Gagfah integration ahead of plan
- Granular integration processes finalized
- Headline 1 Segmentation of combined portfolio completed
- Bottom-up synergy analysis completed
- All functions agreed with works council
- IT integration of financial data completed / one integrated SAP-IT platform for the entire Group (since 1 July 2015)
- Successful dry run for rent collection (go-live on 15 December 2015)
- Organizational integration of operational units (regions, TGS etc.) done
- Successful dry-run for all processes
- Training sessions in all processes almost completed
- Budgeting and planning processes completely integrated
Integration ahead of schedule with higher synergies and lower one-off costs than planned
- Substantially increased economies of scale (purchasing, extension strategy)
- Increased scale de-risking the platform
Acquisition Pipeline Update
IR Contact & Financial Calendar
| Contact | |
|---|---|
Investor Relations Vonovia SE Philippstr. 3 44803 Bochum Germany
+49 234 314 1609 [email protected] www.vonovia.de
Contact Financial Calendar
2015
| March 5 | Full year results 2014 |
|---|---|
| Apr 30 | Annual General Meeting |
| Jun 01 | Interim report Q1 2015 |
| Aug 19 | Interim report H1 2015 |
| Nov 3 | Interim report 9M 2015 |
| Nov 30 | EGM |
2016
| March 3 | Full year results 2015 |
|---|---|
| May 12 | Annual General Meeting |
| May 12 | Interim report Q1 2016 |
| Aug 2 | Interim report H1 2016 |
| Nov 3 | Interim report 9M 2016 |
Disclaimer
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 DA'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.
Tables and diagrams may include rounding effects.