Vonovia SE — Call Transcript 2018

Dec 6, 2018

9M 2018 Earnings CallDecember 6, 2018

Rolf Buch, CEOHelene von Roeder, CFO

A g	d e n a
	hlig hts 1. Hig	dat 2. Bu sin ess up e	kee 3. Ho ing use p	ida 4. Gu 20 19 nce	5. Wr ap -up	nd 6. Ap ix pe

		p ag e
1	h l h H i i t g g s	3
2	d & G d 2 0 8 B i i 1 t n e p e n e u s s s u a u a c	4
3	k i H o s e e e p n g u	1 5
4	f d d G d 2 0 9 N i i i 1 t e p e o m a n c e n c a o s a n a n c e w r r r u	9 1
5	W a p p r -u	2 5
6	d A i p p e n x	2 7

h l h H i i t g g s
1. Hig hlig hts	2. Bu sin dat 3. Ho kee ing 4. Gu ida 20 19 5. Wr 6. Ap nd ix ess up e use p nce ap -up pe
O t i p e r a o n s ( l. Bu ) ex c wo g	ic h f O 4. 1 % t g t rg an r en ro w o y -o -y O in du d by 9. % l f e l im in in he do b le fro t 4 t o t t t s tr tu p er a g ex p en se s re ce a s a re su a g u co s uc re m lu de d fo he f 6 hs f 2 0 l l a d f f t in t irs t t 1 7 t in ic ie in co nw er c m on o as e s co n ue e nc g a s. r w y d j. io in ( l. ) f ( bp ). A E B I T D A O in 9 1. 3 % 2 3 0 t te + p er a ns m ar g ex c m a na nc e o s y- o- y
F F O 1 ( l. ) Bu ex c wo g	O f € 8. 2m ( 2. % ) € 3 9. 8m ( 3. % ) i bu b le ha ho l de ( i.e F F 1 7 7 1 7 7 1 7 t tr ta to V N A + + o y -o -y ; a s re rs l. l hy br d d ) tu i in te t a in i t ie ex c p er p e a re s n m or s ( ) d- f- d € 1. 5 0 5. 6 % io N O S H + y -o -y p er e n o p er € 1. 5 5 ( 6. 4 % ) ig h d N O S H te + y -o -y on w e av er ag e
l V i t a a o n u	d j. ha f f ( lu f fo l ) A N A V € 4 0. 4 7 Se 3 0, 2 0 1 8 io Vo ia io in Q 3 2 0 1 8 t t p er s re o p as o no v a a n o no v p or Va lu h f € 2. 7 € 3. 0 bn ( 6. 6 % 7. 3 % ) im d fo H 2 lu io h ic h l d l t t te t t e g ro w o es a r va a n, w wo u re su - - in 1 3 % lu h fo he fu l l y 2 0 1 8. t t v a e g ro w r ea r ~ d i da f ~ ha fo d 8. A j. N A V € 4 5 2 0 1 g nc e o p er s re ea r-e n u r y
G d 2 0 8 i 1 u a n c e	da f d. 2 0 1 8 Gu i irm nc e co n e f D P S € 1. 4 4 be d he An l Ge l Me in in Ma 2 0 1 9. to to t t o p ro p os e nu a ne ra e g y
d G i 2 0 1 9 a n c e u d a n n e w f P e o m a n c e r r f 2 0 9 K P I 1 s r o m d o n w a r s	fo l, lu d d, Sa les d Vo ia te in ts Re ta Va Re in no g en er a s ea rn g s ac ro ss s eg m en n e- a cu g a n v ur : rr lo d fo d l l r d fo h lu l d De t a in i t A j. E B I T D As t p To ta E B I T D A, ve p m en n g o g ar ep or r e ac se g m en s a n rw w Gr F F O ou p Ea in d is i bu io i is im d by € 1 0 0m ( 1 0 % ) fr 2 0 1 8 tr t ty t te to to + rn g s n ca p ac e s a g ro w c a. om 2 0 1 9.

KPI Growth in spite of Smaller Portfolio and Higher NOSH

1. Business update

2. Housekeeping

3. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Rental income slightly up 3.1% on an almost 2% smaller but higher quality portfolio.

• Adjusted EBITDA Operations up 5.9% because of substantially lower operating expenses and higher contribution from the Value-add Business.
• As a result, and supported by lower interest expenses, FFO1 grew by 12.7% (5.6% per share due to the 6.8% increase in NOSH from the May ABB and scrip dividend).

		9M 20 18	9M 20 17	De lta
Av mb of ide nti al era ge nu er res sqm	`00 0	21 79 3 ,	22 134 ,	-1. 5%
mb of ide nti al its Av era ge nu er res un	#	34 0 7, 77	35 09 4, 5	8% -1.
h (y- ) Or nic t wt ga ren gro o-y	%	4.1	3.9	0 b +2 ps
In- lac t ( ) p e r en eo p	€/m h/s ont qm	6.4 5	6.1 9	+4 .2%
Va e ( ) rat can cy eo p	%	2.7	2.9	-20 bp s
l in Re nta com e	€m	1, 28 7.6	1, 24 9.4	+3 .1%	+€ 38 .2m
Ma int en an ce ex pe nse s	€m	-20 2.2	-19 2.2	+5 .2%
Op tin era g e xp en ses	€m	3.4 -17	-19 1.3	-9. 4%
Ad tal j. EB ITD A R en	€m	91 2.0	86 5.9	+5 .3%	+€ 46 .1m
Ad j. EB ITD A V alu dd Bu sin e-a ess	€m	90 .7	76 .0	+1 9.3 %
Ad j. EB ITD A O rat ion pe s	€m	97 6.2	92 2.1	+5 .9%	+€ 54 .1m
Int FFO 1 st ere ex pe nse	€m	-18 9.2	-21 6.5	-12 .6%
Cu FO nt inc e t s F 1 rre om axe	€m	-8. 8	-15 .1	.7% -41
FFO 1	€m	77 8.2	69 0.5	+1 2.7 %	+€ 87 .7m
FFO 1 p sha (eo NO SH ) er re p	€	1.5 0	1.4 2	.6% +5
sha (av ) FFO 1 p NO SH er re g.	€	1.5 5	1.4 6	+6 .4%

G h R D t t e n o r w hlig hts 1. Hig	i e s r v r dat 2. Bu sin ess up	e	kee 3. Ho ing use p	4. Gu	ida 20 19 nce		5. Wr ap	-up		nd 6. Ap pe	ix
h dr ive Re nt wt ro rs				Po i iv t t g s e re n	h t tra ro w	j to ec ry	( Ge rm an	ly ) y on
g ( las ) t 1 2M	9 M 2 0 1 8	9 M 2 0 1 7	l De ta		20 13	20 14	20 15	20 16	20 17	20 18 E	20 19 E
				rke t d riv Ma en	1.6 %	1.6 %	% 1.7	% 1.5	1.6 %
S i in t t te ts ( inc l. g na n bs i d ize d r ) ts su en	1. 1 %	1. 2 %	-1 0 bp s	de Mo rni zat ion	0.4 %	0.9 %	1.2 %	1.8 %	2.5 %
le in Ne t t ( h n wi t w g s o l in ) ter ia stm t ma ve en	0. 4 %	0. 5 %	0 bp -1 s	Sp eat ion ace cr Or nic nt ga re wt h gro	--- 1.9 %	--- 2.5 %	--- 2.9 %	--- 3.3 %	0.1 % 4.2 %	~4 .4%	~4 .5%
Su b l m ke to ta t ar dr iv h t g t en en ro r w	1. 5 %	1. 7 %	-2 0 bp s
de Mo iza t io rn n ( lu d let inc ing t ing ne w s wi h i t tm ts nv es en ) Op t im ize Ap tm ts ar en	2. 5 %	2. 1 %	4 0 bp + s	In tm t tra ve s en	k c re co r	d ( €m )
b l l- f- l r Su to ta t en h t g ro w	0 % 4.	3. 8 %	2 0 bp + s	New Co tion nst ruc rad uild Upg e B ing Opt imi Apa rtm ze	(in cl. Nei ghb s ent s	orh ood De vel opm	) ent		0 ~1	1, 1, 0 0	3 0 0 - 6 0 0
Sp io t ac e cr ea n	0. 1 %	0. 1 %	-- -			3 47	47 2	77 8	,
Su b l o ic to ta rg an h t g t re n ro w	% 4. 1	3. 9 %	2 0 bp + s	71 2 0 1 3 2	17 2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1	8 E 2 0	1 9 E

9M 2018 Earnings Call

Excluding Buwog and Victoria Park

• Adj. EBITDA Operations is up 5.9% to €976.2m.
• EBITDA Operations margin (excl. maintenance) expanded to 91.3%.

€m	9M 20 18	9M 20 17	lta De
l in Re nta com e	1, 28 7.6	1, 24 9.4	+3 .1%
Ma int en an ce ex pe nse s	-20 2.2	-19 2.2	+5 .2%
Op tin era g e xp en ses	-17 3.4	-19 1.3	-9. 4%
Ad j. EB IT DA Re nta l	91 2.0	86 5.9	+5 .3%
Inc om e	1, 00 2.0	79 5.4	+2 6.0 %
of wh ich al ext ern	12 5.0	11 5.1	+8 .6%
of wh ich al int ern	87 7.0	68 0.3	+2 8.9 %
Op tin era g e xp en ses	-91 1.3	-71 9.4	+2 6.7 %
Ad j. EB IT DA Va lue -ad d Bu sin es s	90 .7	76 .0	+1 9.3 %
1 Ad j. EB ITD A O the r	-26 .5	-19 .8	+3 3.8 %
Ad j. ion EB IT DA O rat pe s	97 6.2	92 2.1	+5 .9%

Mainly consolidation

Driven by better operational performance and lower interest expenses, FFO1 was up 12.7% y-o-y or 5.6% per share (eop) on the basis of 6.8% more issued shares.

€m ( les in d ica d he ise ) te ot un s rw	9 M 2 0 1 8	9 M 2 0 1 7	De l ta
A d j. E B I T D A Op ion t er a s	9 7 6. 2	9 2 2. 1	5. 9 %
O In te t e F F 1 re s xp en se	-1 8 9. 2	-2 1 6. 5	-1 2. 6 %
Cu O t inc ta F F 1 rre n om e xe s	-8 8	-1 5. 1	-4 1. 7 %
O F F 1	7 7 8. 2	6 9 0. 5	1 2. 7 %
f w h h bu b le 's ha ho l de ic t tr i ta to Vo ia o a no v s re rs	7 3 9. 8	6 5 0. 6	1 3. 7 %
f w h h bu b le 's l hy br d l ic t tr i ta to Vo ia tu i i ta inv to o a no v p er p e a ca p es rs	3 0. 0	3 0. 0	--
f w h ic h i bu b le l l ing in t tr ta to tro te ts o a n on -c on re s	8. 4	9. 9	-1 5. 2 %
Ca i l ize d in ta te p ma na nc e	-7 4. 4	-5 0. 3	4 7. 9 %
O A F F	7 0 3. 8	6 4 0. 2	9. 9 %
d j d Sa les A te E B I T D A us	8 7. 0	8 1. 3	7. 0 %
Cu inc O 2 t ta F F rre n om e xe s	-1 0. 8	-2 3. 8	-5 4. 6 %
O 2 F F	8 5 4. 4	7 4 8. 0	1 4. 2 %
O € / ha ( O S ) ( 9 2 0 8: 8m 9 2 0 8 ) F F 1 N H M 1 5 1 M 1 7: 4 5m s re eo p ;	1. 5 0	1. 4 2	5. 6 %
O 1 € / ha ( O S ) ( 9 2 0 1 8: 0 2m 9 2 0 1 3m ) F F N H M 5 M 7: 4 7 s re av g. ;	1. 5 5	1. 4 6	6. 4 %

Adj. NAV is up 12.3% ytd or 5.1% per share in spite of 6.8% more issued shares.

€m (un les ind ted oth ) ica ise s erw	Se 3 0, p 2 0 1 8	De 3 1, c 2 0 17		Is A d j. N A V d f h lu t a g o o p r o xy o r e v a e o
				d iv	in bu in ? t e rs e o p e r a g s e s s
Eq i i bu b le Vo ia 's ha ho l de ty t tr ta to a no s re rs u v	1 7, 0 5 2. 6	1 5, 0 8 0. 8		By	f d in i io he A d j. N A V t t e n,
fe De d inv ies d ta tm t p t rre xe s o n es en ro p er a n he l d fo le ts as se r s a	3 6 7, 4. 7	6, 8 1 5. 7			f le he br k d lu f he ic t t t t re c s a n m or ar v a e o bu l d i in s
1 f f Fa ir lue de iva ive ina ia l ins t tru ts va o nc me n r	7 0. 5	2 6. 9			g
De fe d de iva ive f ina ia l ta t rre xe s o n r nc ins tru ts me n	-2 0. 7	-8 8			l ke d he ie t t t a p p s m ar er m s a n a s su m e s "
E P R A N A V	2 4, 4 6 7. 1	2 1, 2 8 4. 6			d by "a t ie p ro p er s ar e ow ne ny o ne
				h T	h is ig a p p ro a no re s c
Go dw i l l o	-3 4 9 9. 9 ,	-2 6 1 3. 5 ,			he lu d d t Va Bu in e- a s e s s
d j. A N A V	2 0, 9 6 7. 2	1 8, 6 7 1. 1	2. 3 % 1 +		he dv d la fo in t t t t t c o s a a n a g e a n o p er a g p rm
					f a fe l o io o p ro na ne s s w r
2 E P R A N A V € / ha s re	4 7. 2 3	4 3. 8 8			he d lo bu in f i t t t ev e p m e n s e s s p ro
2 d j. € / ha A N A V s re	0. 4 4 7	3 8. 9 4	5. 1 % +		he le bu f t in in i t e g e p ro r cu rr s a s s s s

Adjusted for effects from cross currency swaps. ² Based on the number of shares on the reporting dates Sep 30, 2018 (518.1m) and Dec 31, 2017 (485.1m).

9M 2018 Earnings Call

Increasingly Diverse Value-add Business with Growing Contribution

1. Business update3. Housekeeping

2. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Co t nc ep	lu d d d Va N A V e- a an
f I i i i t n s o c n g o s e c e s o e n s e m a m m p o c e s s u r r v u r x u r d l. t t t m a n a g e m e n a n c o s c o n r o f b d d l E i i t t i t i x p a n s o n o c o r e u s n e s s o g e n e r a e a o n a f f b l k i b k h l h i d i t e e n e s a n g a c e a e c a n a n o e n g r v u y w v u r h l d d b h d i i i i i t t t t s e r v c e s a w e r e p r e v o u s y p r o v e y r p a r e s ( l f ). i t i t i i n e r n a z a o n o m a r g n f T V l d d B i t o p e s o a e- a s n e s s w y u u 1. l i ( f ) % I t t 7 5 n e n a s a n g s a s m e n c a. r v c r 2. l i ( l i d i i ) E t t t t e n a n o m e e. g. m m e a, s m a m e e n g x r c u r r 2 5 % c a.	d f 's l d d N A V V i V t t o e s n o a c c o n o o n o a a e- a u r v u B i s n e s s. u 1 l i h i i C C h 2 0 9 A t t t t W A t t 1 E p p y n g e m p a r m e n e s o e d l d d l A j. E B I T D A V B i t t i t a u e- a u s n e s s r a n s a e s n o a n d d l l f ~ h ( f i i € 5. 8 0 1 4 % t t a o n a v a u e o p e r s a r e o n o p o ~ 9 M A d j. N A V ).
Pe ion ( % ) ho i de ia l in b l is he d in i ia ive tra t te t ta t t ne s ws u p s p o n es s	fro La i bu io in l c in ( A d j. E B I T D A ) t c tr t te t s rg es on n m rn a os av g s

Sales – Steady Cash Flow at Attractive Margins

1. Housekeeping

2. Business update

3. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Total sales volume in 9M 2018 was 9,331 residential units (prior-year period: 8,304), of which 1,666 from Recurring Sales (prior-year period: 1,704) and 7,665 Non-core Disposals (prior-year period: 6,600).

• In spite of value growth of the portfolio, Recurring Sales fair value step-ups could still be maintained around 30% for 9M 2018.
• The Non-core Disposals saw a fair value step-up of 16.3% in 9M 2018, driven largely by two block sales, as we are utilizing the high market liquidity to profitably dispose of our Non-core Portfolio.
• The income and fair value figures of the Non-core Disposals for the prior-year period include a substantial amount of commercialproperty sales.

	R E C U R R I N	G S A L E S		I S P O S A L S	T O T A L
€m (un les s in dic d o the ise ) ate rw	9 M 2 0 1 8	9 M 2 0 1 7	N 9 M 2 0 1 8	9 M 2 0 1 7	9 M 2 0 1 8	9 M 2 0 1 7
fro d l In isp co me m os a	2 0 0. 3	2 1 4. 4	4 1 1. 8	7 3 6. 8	6 1 2. 1	9 5 1. 2
lue f d l Fa ir isp va o os a	-1 5 3. 7	-1 6 1. 6	-3 5 4. 1	-6 8 8. 5	-5 0 7. 8	-8 5 0. 1
d f fro d l A j. i isp t p ro m os a	6. 6 4	2. 8 5	5 7. 7	8. 3 4	0 3 1 4.	0 1 1. 1
Fa ir lue ( % ) te va s p- up	3 0. 3 %	3 2. % 7	6. 3 % 1	0 % 7.

Se l l ing ts co s	-1 7. 3	-1 9. 8
d j. Sa les A E B I T D A	8 7. 0	8 1. 3

LTV Remains in Comfort Zone

1. Business update3. Housekeeping

2. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

3. LTV as of September 30, 2018 was 45.1%.

4. Against the background of the stable cash flows and the strong fundamentals in our portfolio locations we see continued upside potential for our property values, and we do not see material long-term downside risks.
5. We therefore continue to believe that the LTV target range of 40% 45% is adequate for our low risk portfolio, and we feel comfortable with this range.
6. Based on our internal projections we estimate the year-end LTV to be below 44% and the Debt/EBITDA multiple¹ below 12x.

€m (un les ind ica ted oth ise ) s erw	Se 3 0, 2 0 1 8 p	Ju 3 0, 2 0 1 8 n	Ma 3 1, 2 0 1 8 r	De 3 1, 2 0 1 7 c
No de iva ive f ina ia l l ia b i l i ies t t n- r nc	2 0, 0 5 3. 2	1 9, 7 7 4. 6	1 8, 8 8 7. 0	1 4, 0 6 0. 5
ha f fe Fo ig te ts re n e xc ng e ra e c	-3 1. 5	-2 9. 6	8 -1 7.	-2 3. 5
Ca h d h iva len ts s an ca s eq u	-5 0 7. 3	-8 6 5. 8	-8 2 9. 3	-2 6 6. 2
de b Ne t t	9, 1 5 1 4. 4	8, 8 9. 2 1 7	8, 0 3 9. 9 1	3, 0. 8 1 7 7
les b les Sa iva re ce	-2 7 3. 2	-2 3 9. 8	-2 3 2. 4	-2 0 1. 2
A d j. de b t t ne	1 9, 2 4 1. 2	1 8, 6 3 9. 4	1 7, 8 0 7. 5	1 3, 5 6 9. 6
Fa ir lue f r l e fo l io ta te t o ea p or va s	4 1, 9 4 8. 6	4 1, 7 3 2. 3	3 8, 4 8 5. 6	3 3, 4 3 6. 3
S ha he l e in t ta te ies re s o r r ea s co m p an	3 3. 6 7	3 7 4. 5	6 6 6. 6	6 2. 2 4
d j. fa ir lu f r l e fo l io A ta te t va e o ea s p or	4 2, 6 8 2. 2	4 2, 4 6 6. 8	3 9, 1 5 2. 2	3 4, 0 7 8. 5
L T V	% 4 5. 1	3. 9 % 4	% 4 5. 5	3 9. 8 %
L T V ( inc l. l hy br i d ) tu p er p e a	4 7. 5 %	4 6. 3 %	4 8. 0 %	4 2. 8 %

Adj. net debt average 2018E over Total EBITDA 2018E

Smooth Maturity Profile with Diverse Funding Mix

Average financing cost of debt maturing in the relevant year. ² Weighted avg. financing costs excl. Equity Hybrid. Including Equity Hybrid, avg. interest rate of debt maturing in 2021 is 3.4%. ³ excl. Equity Hybrid.excl. Buwog Squeeze Out. ⁵ LTM EBITDA/LTM interest expense.

1. Hig hlig hts 2. Bu sin dat ess up e	3. Ho kee ing use p	4. Gu ida 20 19 5. Wr nce ap -up	6. Ap nd ix pe
	ls 2 0 1 7 Ac tu a	i da ( fr ) 2 0 1 8 Gu Au nc e om g. Inc l. 9 ths Bu & 6 m on wo g	in l i da F 2 0 1 8 Gu a nc e ths Vic ia Par k tor m on
Or ic h ( ) t g t g an re n ro w eo p	4. 2 %	1 ~4 4 %	1 ~4 4 %
Va ( ) ca nc y eo p	2. 5 %	2. 5 % <	2. 5 % <
l ( ) Re ta In €m n co me	1, 6 6 7. 9	1, 8 9 0 1, 9 1 0 –	1, 8 9 0 1, 9 1 0 –
F F O 1 ( €m )	9 2 0. 8	1, 0 5 0 1, 0 7 0 –	1, 0 5 0 1, 0 7 0 –
( / ha ) F F O 1 € s re eo p ,	9 0 1.	2. 0 3 2. 0 7 –	2. 0 3 2. 0 7 –
Ma in ( €m ) te na nc e	3 4 6. 2	~4 1 0	~4 1 0
de & ( €m ) Mo iza t ion In tm ts rn ve s en	8. 6 7 7	0 0 0 ~1 ,	0 0 0 ~1 ,
f u Re ing Sa les ( be i ) ts cu nu m r o n rr	2, 6 0 8	~2 8 0 0 ,	~2 8 0 0 ,
( Sa les ) F V te Re ing s p- up cu rr	3 2. 7 %	3 0 % 3 % 5 -	~3 % 5
d ls ( be f u ) No isp i ts n- co re os a nu m r o n	1 1, 7 8 0	to 1 4, 0 0 0 up	~1 3, 0 0 0
( Se l l fo l io ) F V te Po t s p- up r	9 % 7.	1 0 % 1 % 5 -	2 0 % >
de d / ha D iv i € n s re	3 2 1.	f ~7 0 % F F O 1 o	2 1. 4 4
E P R A N A V ( € / ha ) re s	4 3. 8 8	/ n a	~5 2
d ( / ha ) A j. N A V € s re	8. 3 4 9	/ n a	~4 5
Un de ly ing be f s ha ( i l l ion ) r n um r o re s m	4 8 5. 1	5 1 8. 1	5 1 8. 1

2018 Guidance Confirmed

1 Vonovia stand-alone. 2To be proposed to the 2019 AGM and based on current number of shares outstanding.

European Activities Update Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ^{2016 2017 2018} Researching and understanding European housing marketsFirst (minor) exposure to non-German resi portfolio via conwert tender offer Rolf Buch is appointed to D. Carnegie BoardSigning of MoU with CDC Habitat (formerly SNI)Tender offer for BuwogTender offer for Victoria Park (14k units)Acquisition of 10% stake in a 4,000 unit portfolio sold by French SNCFCautious step-by-step approach to minimize risk. Currently ca. 10% of the portfolio are located outside Germany. We will continue to monitor the German market and our defined European target markets for accretive acquisition opportunities.Germany is expected to remain the dominant market also in the foreseeable future. No specific target rate or ratios in terms of German vs. non-German exposure but highly opportunistic approach as is the case for our German M&A activities. 2. Business update 3. Housekeeping4. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

	Au ia str ( la b le bu ine ) ru n a sc a s ss	Sw de e n ( in fo ) ma cu s	Fra nc e ( b ig lon ia l ) t te ot t g es g- rm p en	T he N he lan ds et r ( ive le ) ct no a ro
f As % a o l p fo lio tot ort a	~6 %	~4 %	fu No nin l t m ea g	0 %
Ne xt ste p s	Gr du l a ion vi • t r ota t a a sse a les f m rin atu ts rec ur g sa o re as se d de lop f n nt ts an ve me o ew as se lar de in im i nit a s m ag u la b le bu • Ru t ing ine n s ca op era s ss l low • Fo t ive is it ion ac cre ac q u it ies ort op p un o n a n ist ic ba is ort op p un s	• Pu ret ive is it ion rsu e a cc ac q u it ies ort op p un o n a n ba ort ist ic is op p un s d d via ien d • A Vo no ex p er ce an ki l l s d u k a et V ict ia Pa s an se or r s lat for fur he in to t a p m r g row he d h r de l m ke t S is i nt ia t we es ar d • De tra te mo ns su cce ss an ina b i lity f V ia sta su o on ov bu de l to ho lso ine it a s ss mo s w ks i de f G ts wo r ou o er ma ny	lize ke Ut i 1 0 % sta in S NC F • fo lio in fou d ort to p g a mo re p ro n de d f t he ke rst ing t un an o m ar feg d p le d • Sa it ion ua r o p os a n fir dv for st- tag mo ve r a an e l o f s l ote nt ia ing ia p p en o oc ho ing ia l to us co mm erc hip ow ne rs • Pu ret ive is it ion rsu e a cc ac q u it ies ort op p un o n a n ist ic ba is i f a d w he ort op p un s n n leg lat ha d a l low is ion c ng es an s he f e mi t t o p ay ou co no c d de ds fro l ho ivi ia ing n m so c us	Co inu ke h • nt t r e m ar es ea rc Be d for ive • t p rep are ac cre is it ion ort it ies ac q u o p p un o n a n ist ic ba is ort op p un s

page 16Update Integration Buwog and Victoria Park Victoria ParkVonovia exercises control via its seats on the Board and sets the parameters within which Vonovia Park is expected to continue its successful track record.No operational integration of Victoria Park, in contrast to all previous acquisitions.Victoria Park is to serve as the nucleus in Sweden from which we try to build a scalable business model, grow in the Swedish residential market and aim to prove that the Vonovia business model also works in markets outside of but similar to Germany.EBITDA Interest + taxes Pro forma FFO 1Operations BuwogFFO 1 VNA stand-aloneBuwog2019 pro forma accretion analysis (actual financing)50% debt + 50% equity financing as per acquisition criteria (FY2019E) 492.1mshares543.0mshares€2.06p.s.€2.06€2.08p.s.Buwog squeeze out effective as of Nov 16, 2018; 100% of Buwog shares now owned by Vonovia.Integration of Buwog Rental Business Germany fully on track and to be completed by year end, as expected. Combination of conwert assets with Buwog assets in Austria fully on track and to be managed on our SAP platform by mid 2019, as expected. this will also serve as a blueprint for potential future integrations outside of Germany.Development business to be transferred onto our platform by mid 2019.Of the €30m synergies announced with the transaction, €5m will be realized in 2018, another €20m in 2019 and the remainder in 2020.FFO 1 VNA stand-aloneEBITDA Operations VP Interest + taxes Pro forma FFO 1 50% debt + 50% equity financing as per acquisition criteria (FY2019E) 492.1mshares514.1mshares2.06p.s.€2.07€2.09p.s.FFO 1 VNA stand-alone EBITDA Operations Buwog EBITDA Operations VP Interest + taxes Pro forma FFO 1492.1mshares518.1mshares€2.06 p.s.€2.14-€2.18 p.s. 2. Business update 3. Housekeeping4. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

9M 2018 Earnings Call

Update on German Rental Regulation

1. Business update

2. Housekeeping

3. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

"Mietrechtsanpassungsgesetz" (legislation passed by German parliament on Nov 29, 2018)

Re la io t g u n	Im t p ac
de iza io l lo io be du d fro 1 1 % 8 % f he Mo t t to to t rn n a ca n r e ce m o l p la h ha l l a ly in tm t a t. Co tra to in i t ia t is to ve en m ou n n ns p p s ry s , l l ho in ke j ho ha de f in d "t ig h ts t t t t t a t a us g m ar no us se re e as , ho ke " in ts us g m ar	ia i l l o f c ho he 8 % hr ho l d, j he Vo t t t a t no v w ou rs e no r n ew es us s hr ho l d ha lw be ho d. fe de 1 1 % t As es en no re er up g s a ay s v y w ra bu i l d in de iza io ha 8 % f he in t t t tm t g m o rn ns s aw m or e n o ve s en be l lo d f he l r he f t to te to t t, t im t o am ou n a ca on p o a nn ua en p ac h ha he la d be l. is in io is im ia t t t te to te c ng e re g u n ex p ec m a r
l low de bs lu f Fo in iza io t te g a m o rn n, a n a o c ap o € 2 / h fo i h f € 7 / t g t tm ts t t o < sq m re n ro w r a p ar en w a re n sq m • he de d io to t iza t io p m o rn n an r r fo f € 3 / h i h € 7 / t g t tm ts t t o > sq m re n ro w r a p ar en w a re n sq m • he de io to t iza t io p m o rn n r r	ha d l f / h Vo ia i i € 2 t te ts to t g t no v s co m m e a sq m re n ro w ca p fo l low in l l u de bu i l d in de iza io fo 2 0 1 9 d t g a p g ra g m o rn ns r an f he f f 2 0 2 0. As t ic ie a c on se q ue nc e, s om e o e ne rg e nc y y fro de iza io l l p ip l in i l l n be t t o m o rn ns m o ur o ve ra e e w ow p u n ho l d d he fu ds l l be d d ds t i ire te to t im ize an n e c wa m or e op w r r de de lo iza io io tm t m t t t- to ap ar en o rn ns sp ac e cr ea n, ve p m en , ho l d j d in in Sw de ts tm ts p ro ec a n ve s en e n.
f r Fu he ig h in La d lo ds ire d t t te t c to r r n g o en ap : n r a re r eq u à- d lo he he f he isc t io t v is- is t te t i t t se p re us en n ew na n wa n v r v y he ha bo he lo l 1 0 % to t t t a t m t t s e n ew re n or e n a ve ca b le t. co m p ar a re n	Vo ia ha lw be bo he io tra t a t t t no v s a ay s en ns p ar en u p re v us r en lev l a d d l h h la l l t in ia i t t is t io i e n ou r c on ue co m p nc e re g n w u w ha he bu im in t o t ve n o p ac n s es s.

Evolution of Modernization and New Construction Investments

1. Housekeeping

2. Business update

The supply/demand imbalance in urban areas and the conflict between the need for energy efficiency modernization of Germany's housing stock and affordability of rents have given rise to an intense political and public discussion.

• Vonovia's investment volume 2019 brings a reduction of Upgrade Building volumes as the focus shifts from energy efficiency to affordability for parts of our customer base. We respect that there is growing resistance among parts of our customer base when it comes to energy efficient modernizations. That is why we have committed ourselves to only do upgrade building modernizations with a maximum rent growth of €2/sqmfor the 2019 and 2020 modernization programs.
• At the same time, we are increasing our investments into Optimize Apartment, Space Creation and Development to Hold. As the market leader, Vonovia clearly acknowledges its responsibility and continues its efforts to be part of the solution when it comes to providing affordable, adequate and modern buildings and apartments. So while we will be reducing the investment volume of energy efficient modernizations we will be increasing our investments into other parts of the investment program including new construction and portfolio investments in Sweden so that the overall impact is not expected to be material.

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

• In contrast to opportunistic sales, portfolio clean-up sales or large asset sales known from other sectors, recurring sales ("privatization") are a robust and granular sales channel that has delivered very stable volumes above 2k units p.a. over the last 10 years with an average annual volume of 2.7k (after an initial ramp-up phase of two years).
• We currently have ca. 29k units (excl. Buwog) that are eligible¹ for recurring sales.

Including all units that have been legally prepared for retail sales by way of separate land register entries. ² 2013-2017 including Buwog recurring sales.

E F r	l f h i t t v o u o n o e h k L P t e s o o a e	B i u s n e s f r o r m a n	d d A s a n M i t c e e r	d l i i t o n a c s	R e v e n u e	S t r e a m	R i s e q u r e	a
	1. Hig hlig hts	2. Bu sin dat ess up e	3.	Ho kee ing use p	4. Gu ida	20 19 nce	5. Wr ap -up		6. Ap nd ix pe
	T he bu in ha bs s es s s su he fu l l r i de t ac ro ss es n	ia l ly ta t n ev o ia l r l e t ta ea s	lve d in he t s ce l i fe le te c y c o	I P O in 2 0 1 3 f o ts ur a ss e a	d da to an y en d j t t r n no us	co m p as se s va l r ta en ev en ue	lu io t e cr ea n s.	W ca se	hy d in te t a ta re s n xe s be d los d isc t nn o e p er t g m en
	he As t a c on se q ue nc e, h, h- f low t g ro w c as g en Go in fo d i l l g rw ar we w		d In te t a ta re s n x im iza ion ha t t op p p en s lev l te on or p or e a c a d h t w i t in an no
	l, lu d d, Re ta Va De n e- a		d du l s in iv i ts a eg m en d In te t a ta re s n xe s a re f he ke t p t o t no ar y fo d in ica to p er rm an ce rs do F ina ing is nc ne o n a lev l ( h te co rp or a e ca s l ing ), de le d p oo co up fro he lev l; t t m a ss e e l loc l d ion t
A Gr	Re ve nu es Co ts s d j. E B I T D A In te t re s Ta xe s Co l i da io t ns o n F F O ou p								an ou y a a w be b he i tra t a r ry a s de b d in t a te t r te n re s a is l in ke d t to no a t se g m en l e Le i ies t t t g a n c an no be lea ly l loc d te to c r a a i f ic t on e sp ec se g m en bu t o te p er a a cr os s ts se g m en d by Ta inc xe s a re re ur leg l e t i t ies t a n no , ts se g m en

l d i i G i I t n a a n u	2 0 1 9 N c e e w –	S t t c e r u u r
hlig hts 1. Hig	2. dat Bu sin ess up e	3. kee Ho ing use p	Gu ida 20 19 4. nce	5. Wr ap -up	6. nd Ap ix pe

	i ia l 2 0 1 9 Gu i da In t nc e	2 0 1 8 y- o- y vs
Or h ( ) ic t g t g an re n ro w eo p	% ~4 4
l ( ) Re In €m ta n co me	2, 0 2 0 2, 0 7 0 –
ing Sa les ( f u i ) Re # ts cu rr o n	~2 0 0 5 ,
les F V te Re ing Sa s p- up cu rr	~3 0 %
l ( ) To E B I T D A €m ta	1, 6 5 0 1, 7 0 0 –
Gr O ( €m ) F F ou p	0 9 0 1, 1 4 1, 1 –
( / ha ) Gr F F O € ou p s re	2. 2 0 2. 3 0 –
D iv i de d € / ha n s re	~7 0 % f Gr F F O o ou p
de & Co ( €m ) Mo iza t ion Ne tru t ion rn w ns c	3 0 0 6 0 0 1, 1, -
de ly be f s ha ( l l ) Un ing i ion n um r o re s m r	5 1 8. 1

1. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Operating business continues on its strong trajectory.

Investment volume grows and sees a shift towards more new construction, reflecting Vonovia's ambition to be part of the solution.

Market fundamentals remain attractive as evidenced by H2 valuation estimate.

New performance indicators better reflect Vonovia's full earnings growth, cash-flow generation and value creation potential.

IR Contact & Financial Calendar

1. Business update

2. Housekeeping

3. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Rene HoffmannHead of Investor RelationsVonovia SEUniversitätsstraße 13344803 BochumGermany

+49 234 314 1629rene.hoffmann@vonovia.deinvestorrelations@vonovia.dewww.vonovia.de

C t t o n a c		F i i l C l d n a n c a a e n a r
	De 7- 1 3 c	Ro ds ho Eu ( Zu ic h, Pa is, Lo do Am da ) te a ro p e n n, s m w r r r
	De 1 2 c	E P R A Co Ac Da Lo do te rp or a ce ss y, n n
	8 De 1 7- 1 c	ds ho Ca da Ro a w na
	2 0 9 Ja 1 4- 1 5, 1 n	Ge Se C In tm t ina N Y rm an ve s en m r,
	Ja 1 6, 2 0 1 9 n	ds ho Ma t Ro U S A na g em en a w,
	Ja 2 1, 2 0 1 9 n	ler he fe k fu Ke C Ge Co Co Fr te t p re rm an rp or a n re nc e, an uv ux r
	Ja 3 1, 2 0 1 9 n	1 Ba k ha La Ge Eq i Fo ( Lo do ) ty n us m p e rm an m n n u ru
	Fe b 3- 4, 2 0 1 9	1 Ro ds ho Te l Av iv ( Is l ) a w ra e
	2 0 9 Ma 7, 1 r	2 0 8 l F Y 1 Re ts su
	Ap 3, 2 0 1 9 r	k ha h lan d ko fe de de Ba La De ts Ba Ba n us m p e u c n re nz n- n ,
	Ma 7, 2 0 1 9 y	im l In te ts 3 M 2 0 1 9 r re su
	Ma 1 6, 2 0 1 9 y	An l Ge l Me ing t nu a ne ra e
	Ju 4- 5, 2 0 1 9 n	Ca i l Ma ke Da ta ts p r y
	6, 2 0 1 9 Ju n	d l in Co fe l in B Ac Be Be ce ss r n re nc e, r
	2, 2 0 9 Ju 1 1 n	ba C O Co fe Ex B N P Pa i Eu E Pa is an e r s ro p ea n n re nc e, r
	Au 2, 2 0 1 9 g	im l In te ts 6 M 2 0 1 9 r re su
	No 5, 2 0 1 9 v	im l In te ts 9 M 2 0 1 9 r re su

d A i p p e n	x
1. Hig hlig	hts 2. Bu sin dat ess up e	3. Ho kee ing use p	4. Gu ida 20 19 nce	5. Wr ap -up	6. Ap nd ix pe
P a g e s	C t t o n e n
2 8- 3 6	9 l d d l M Re t A i t io Da t su s na a –
3 7- 3 9	In C S d ie t t tu ve s m e n a s e s
4 0- 4 4	F in in a nc g
6 4 5- 4	Ac is i t io q ns u
4 7	ha S C tr t t a e g y r
4 8	lu lu Fa ir Va Ev io t e p er s q m o n
9 4	fo l io lu io Po t Ev t o n r
5 0- 5 2	ha Vo ia S no v re s
5 3- 5 6	d l ke Re i ia Ma Da t t t s e n r a
5 7	C la io b G No t tw or re n e e e n er	i d ia l ie l d Re t Y m a n s e n	d In t t Ra t s a n er e s e s
5 8	hr f T La Pe io t e e y er s o rc e p n
5 9- 6 1	Ma C io t t na g e m e n o m p e ns a n
6 2- 6 6	ic P tu re s
6 7	la D is im c er

f l S O R i i i I F R P i F F t t t e o n o n o o c c a r
hlig hts dat kee 1. Hig 2. Bu sin 3. Ho ing ess up e use p	ida 4. Gu 20 19 nce	5. Wr ap -up	nd 6. Ap ix pe
( les d d o he ) €m in ica te t ise un s rw	9M 2 0 1 8	9M 2 0 17	lta De
* IF RS P R O FI T F O R T HE P ER I O D	1, 3 9 9. 0	1, 2 0 5. 2	1 6. 1 %
1 l r lt Fin ia an c es u	2 9 6. 5	21 8. 2	3 5. 9 %
Inc * e t om ax es	7 2 8. 8	6 6 3. 8	9. 8 %
De iat ion d a iza ion * rt t p rec an mo	3 8 7.	2 3. 0	6 4. 3 %
fro fa lue d f in * Inc ir v j tm ts stm t p ert ies om e m a a us en o ve en rop	-1 3 8 6. 7 ,	-1 1 6 4.7 ,	1 9. 1 %
RS * EB IT DA IF =	1, 0 75 .4	94 5. 5	3. 1 7 %
A d j. EB IT DA BU W O G	-9 8 1.	-	-
* No rin ite n- rec ur g ms	9 3. 8	75 9	2 3. 6 %
To l p io d a d j fro he l d for le ta tm ts ts er us en m as se sa	-0 2	0 -5	-9 6. 0 %
Fin ia l in fro inv in he l e ies tm ts ot sta te an c co me m es en ea co mp an r r	-1 4. 0	-1 3. 0	7.7 %
AD JU ST ED E BI TD A =	1, 0 6 3. 2	1, 0 0 3. 4	6. 0 %
d j d S les A te EB IT DA us a	-8 7. 0	-8 1. 3	7. 0 %
AD JU ST ED E BI TD A O PE RA TI O NS =	97 6. 2	9 2 2. 1	5. 9 %
2 FF O int st ere ex p en se	-1 8 9. 2	-2 1 6. 5	-1 2. 6 %
Cu O nt inc e t FF 1 rre om ax es	-8 8	-1 5. 1	-4 1.7 %
FF O 1 =	77 8. 2	6 9 0. 5	2. % 1 7
Ca ita lize d m int p a en an ce	-7 4.4	0. 3 -5	47 9 %
AF F O =	7 0 3. 8	6 4 0. 2	9. 9 %
Cu inc S les nt e t rre om ax es a	-1 0. 8	-2 3. 8	6 % -5 4.
FF O 2 ( FF O 1 inc l. A d j d EB IT DA S les / Cu inc te nt e t us a rre om ax es les ) Sa	8 5 4. 4	74 8. 0	14 2 %
O 1 p ha in ( O SH ) FF N er s re eo	1.5 0	1.4 2	5. 5 %
€ p AF F O ha in € ( N O SH ) p er s re eo p	3 6 1.	3 2 1.	2. 9 %
Nu be f s ha ( mi l lio ) m r o res n eo p	5 1 8. 1	4 8 5. 1	6. 8 %

All values excluding Buwog except figures marked with *. ¹ Excluding income from investments. ² Including financial income from investments in other real estate companies.

S & I F R P L
hlig hts 2. dat 3. kee 1. Hig Bu sin Ho ing ess up e use p	ida 20 19 4. Gu nce	5. Wr ap -up	nd 6. Ap ix pe
€m ( les in d ica d o he ise ) te t un s rw	9M 2 0 1 8	9M 2 0 17	De lta
fro let Inc ert t ing om e m p rop y	1, 95 4. 8	1, 75 3. 9	11 .5 %
fro Ot he r in ert t co me m p rop y ma na g em en	3 9.7	3 4. 0	1 6. 8 %
In fro ty t co me m p ro p er m an ag em en	1, 9 94 .5	1, 7 8 7. 9	11 6 %
Inc fro d isp l o f p ies ert om e m os a rop	6 7 3. 6	95 1. 2	-2 9. 2 %
Ca f p l d ing nt ert ies am ou o rop so rry	-5 9 2. 6	-9 0 5. 6	-3 6 % 4.
lua f a he l d for le Re t ion ts va o sse sa	4 8. 0	6 0. 5	-2 0. % 7
Pr f it d isp l o f p ies t o on os a ro p er	1 2 9. 0	1 0 6. 1	21 6 %
fro he d l f p ( lop ) Inc t isp ert ies De nt om e m os a o rop ve me	1 2 2. 9	-	-
f s l d Co st ert ies o o p rop	-1 0 7. 8	-	-
f it he d isp l f p ies ( lop ) Pr t t De nt o on os a o ro p er ve me	15 .1	-	-
Ne inc fro fa ir lue d j f inv ies t tm ts tm t p t om e m va a us en o es en ro p er	1, 3 8 6. 7	1, 1 6 4.7	1 9. 1 %
Ca ita lize d int l e p er na xp en se s	3 3. 3 4	3 2 6. 8	3 2. 6 %
Co f m ria ls st ate o	-9 9 3. 4	-8 6 6. 8	14 6 %
Pe l e rso nn e xp en se s	-3 6 0. 5	-3 0 7. 1	17 .4 %
iat ion d a iza ion De rt t p rec an mo	-3 7. 8	-2 3. 0	6 3 % 4.
he Ot t ing in r o p era co me	8 7.4	75 8	15 3 %
Ot he ing t r o p era ex p en se s	-2 5 2. 0	-1 9 6. 7	2 8. 1 %
Fin ia l in an c co me	27 3	4 6. 2	-4 0. 9 %
Fin ia l e an c xp en se s	-3 0 1. 9	-2 44 9	2 3. 3 %
Ea ing be fo ta rn s re xe s	2, 1 27 8	1, 8 6 9. 0	1 3. 8 %
Inc e t om ax es	2 8. 8 -7	-6 6 3. 8	9. 8 %
f it fo he io d Pr r t o p er	3 9 9. 0 1,	2 0 2 1, 5.	1 6. 1 %
bu b le At tr i ta to :
's ha ho l de Vo via no re s rs	3 2 3. 1, 1	6 1, 11 7.	8. % 1 4
via 's hy br i d c ita l in Vo sto no ap ve rs	2 2.4	2 2.4	0. 0 %
l lin No tro int sts n-c on g ere	3. 5 5	6 2 5.	9 % -1 7.
ing ha ( ba ic d d i lut d ) in Ea € rn s p er s re s an e	2. 6 4	2. 3 6	11 9 %

l h ( / l ) S S 1 2 I F R B t T t A t a a n c e e e o a s s e s –
Hig hlig hts 2. sin dat 3. kee ing 1. Bu Ho ess up e use p	Gu ida 20 19 4. 5. nce	Wr ap -up	6. nd ix Ap pe
€m	3 0, 2 0 8 Se 1 p	3 2 0 De 1, 17 c	lta De
As ts se
b le Int i ts an g as se	3, 6 0 1.1	2, 6 3 7. 1	3 6. 6 %
Pro lan d e ip ert t a nt p y, p n q u me	2 3 7. 9	17 7. 6	3 4. 0 %
Inv tm t p ert ies es en rop	41 2 6 5. 0 ,	3 3, 1 8 2. 8	24 .4 %
l a Fin ia ts an c sse	8 2 3. 5	6 9 8. 0	1 8. 0 %
Ot he ts r a sse	1 8. 4	1 3. 8	3 3. 3 %
fer d t De ts re ax as se	1 0. 4	1 0. 3	1. 0 %
l n To ta nt et on -c ur re a ss s	45 95 6. 3 ,	3 6, 71 9. 6	25 2 %
Inv to rie en s	8. 8	6. 2	41 9 %
Tr de iva b les a re ce	3 4 4. 5	2 3 9 4.	8 0 % 5.
l a Fin ia ts an c sse	5. 6	0. 5	>1 0 0 %
Ot he ts r a sse	1 6 5. 7	9 8. 4	6 8. 4 %
b les Inc e t iva om ax re ce	3. 8 4	9 47	-8 6 %
h a d c h e len Ca iva ts s n as q u	5 0 7. 3	2 6 6. 2	9 0. 6 %
Re l e inv rie sta te to a en s	2 9 9. 8	---	---
he l d for le As ts se sa	11 8. 6	14 2. 6	-1 6. 8 %
To ta l c nt et ur re a ss s	1, 5 8 4. 1	7 9 6. 7	9 8. 8 %
To l a ta et ss s	47 5 4 0. 4 ,	3 7, 5 1 6. 3	2 6. 7 %

l h ( / l d b l ) I F R S B S 2 2 T E i L i i i i t t t t a a n c e e e o a q a n a e s u y –
1. Hig hlig hts 2. Bu sin dat 3. Ho kee ing 4. Gu ida 20 19 ess up e use p nce	5. Wr ap	-up	6. Ap nd ix pe
€m	3 0, 2 0 8 Se 1 p	3 2 0 De 1, 17 c	lta De
Eq ity d l ia b i l it ies u a n
bs be d c l Su i ita cr ap	8. 5 1 1	8 4 5. 1	6. 8 %
Ca ita l re p se rve s	7, 1 8 1. 8	5, 9 6 6. 3	2 0. 4 %
Re ine d e nin ta ar g s	9, 1 0 0. 8	8, 47 1. 6	7.4 %
Ot he r r es erv es	25 1. 9	15 7. 8	5 9. 6 %
To ta l e ity at tr i bu ta b le to V ia 's ha ho l de q u on ov s re rs	17 0 5 2. 6 ,	15 0 8 0. 8 ,	1 3. 1 %
Eq ity i bu b le hy br i d c ita l in at tr ta to sto ap ve rs u	0 3 1, 1.5	0 0 6 1, 1.	3. 0 %
l e ity i bu b le ia 's ha ho l de d hy br i d c ita l inv To ta at tr ta to V to q u on ov s re rs an ap es rs	8, 8 1 0 4. 1	8 1 6, 0 2.4	1 2.4 %
No l lin int tro sts n-c on g ere	1, 0 1 6. 3	6 0 8. 8	6 6. 9 %
To l e ity ta q u	9, 0 0. 1 1 4	6, 6 9 2 1 1.	% 14 .4
Pro vis ion s	5 94 3	6 0 7. 2	-2 .1 %
Tr de b les a p ay a	1. 0	2.4	-5 8. 3 %
de fin l lia b lit No riv at ive ia i ies n an c	17 75 5. 6 ,	1 2, 45 9.4	4 2.5 %
De riv at ive s	5 4.7	8. 7	>1 0 0 %
Lia b i lit ies fro fin lea m an ce se s	94 .4	94 .7	-0 3 %
Lia b i lit ies l lin int to tro sts no n-c on g ere	3 8 1.	24 9	27 % .7
l lia b lit fro fin Fin ia i ies ten t ing an c m an an c	5 4. 5	---	---
Ot he lia b i lit ies r	3 47	6 3 5.	-2 6 % 7.
fer d t lia b lit De i ies re ax	6, 44 4. 0	5, 3 2 2. 6	21 .1 %
To l n l ia b i l it ies ta nt on -c ur re	25 0 77 6 ,	1 8, 5 8 5. 2	3 4. 9 %
vis ion Pro s	4 3 4.7	3 7 6. 5	15 .5 %
de b les Tr a p ay a	21 2.4	1 3 0. 7	6 2.5 %
fin No de riv ive ia l lia b i lit ies at n an c	2, 2 97 6	1, 6 0 1.1	4 3. 5 %
De riv ive at s	9 41	4.4	0 0 % >1
b lit fro fin lea Lia i ies m an ce se s	4. 9	4. 6	6. 5 %
Lia b i lit ies l lin int to tro sts no n-c on g ere	6. 7	9. 0	-2 5. 6 %
lia b lit fro fin Fin ia i ies ten an c an an c	0 9 1 4.	7.7	0 0 % >1
l t ing m he lia b lit Ot i ies r	25 9. 3	1 0 5. 9	>1 0 0 %
To l c l ia b i l it ies ta nt ur re	3, 3 6 2.4	2, 2 3 9. 9	5 0. 1 %
l l ia b i l it ies To ta	8, 2 44 0. 0	8 2 0, 25 .1	3 6. 6 %
To l e ity d l ia b i l it ies ta q u a n	47 5 4 0. 4 ,	3 7, 5 1 6. 3	2 6. 7 %

9M 2018 Earnings Call

h l I F R S C F a s o w 1. Hig hlig hts 2. sin dat 3. kee ing Gu ida Bu Ho 4. ess up e use p	20 19 5. nce	Wr ap -up	6. nd ix Ap pe
€m	9 0 8 M 2 1	9 0 M 2 1 7	l D t e a
h f lo fr C t in t iv i t ie a s w o m o p er a g a c s	8 7 6. 0	7 1 9. 0	2 1. 8 %
h f lo fr C in in iv i ie t t t a s w o m ve s g a c s	-3 8 7 1. 1 ,	6 2 -1 1 5. ,	0 0 % 1 >
h f lo fr f C in in t iv i t ie a s w o m a nc g a c s	3, 1 4 6. 2	-7 5 4. 8	1 0 0 % >-
h in h d h iv l N t t e c a ng e s c a s a n c a s e q u a e n s	2 4 1. 1	-1 2 0 1. 0 ,	1 0 0 % >-
C h d h iv le he b in in f he io d t t t t a s a n c a s e q a n s a e g n g o p er u	2 6 6. 2	0. 8 1, 5 4	-8 2. % 7
1 C h d h iv l h d f h i d t t t t a a a e a e a e e o e e o s n c s q u n s n p r	5 0 7. 3	3 3 9. 8	4 9. 3 %

f l C M i t t o s o a e r a s
1. Hig hlig hts 2. Bu sin dat 3. Ho kee ess up e use	ing 4. Gu ida 20 19 p nce	5. Wr ap -up	6. Ap nd ix pe
€m ( les d d he ) in ica ise te t un s o rw	9 2 0 8 M 1	9 2 0 M 1 7	l De ta
fo l lar Ex i ts p en se s r a nc y co s	5 1 4. 7	2. 0 4 7	9. 0 %
fo in Ex te p en se s r m a na nc e	4 1 3. 5	3 2 2. 0	2 8. 4 %
he f p ha d ds d O ice t t o r c os c se g oo a n se s ur rv	6 5. 2	8 7 2.	-1 0. 4 %
l c f m ia ls To ta t o te os a r	9 9 3. 4	8 6 6. 8	6 % 1 4.

All Strategic Markets Show Upward Potential

1. Hig hlig hts	2. Bu	sin dat ess up e		3. Ho kee use	ing p		4. Gu ida 20 19 5. Wr nce ap -up		6. Ap nd ix pe
	Fai r va	lue 1						In- pla ce	t ren
Re ion l Ma ke t g a r	(€m )	(€/ ) sqm	ide l uni Res ntia ts	Liv ing a ('00 are 0 s ) qm	Vac anc y (% )	al (p.a Tot ., € m)	l (p.a ide Res ntia ., € m) (€/	ide l Res ntia /m ont h) sqm	Org ani nt gro c re wth (% )	le (in- ltip Mu pla t) ce ren	Ave nt gro rag e re wth for st CB eca RE (5 y rs) (% )	Rev ion ers ary ial2 ) fro (% pot ent ize Apa m O ptim rtm ent s
lin Ber	6,3 49	2,1 91	43, 992	2,8 04	1.7	228	216	6.5 3	4.2	27. 9	4.3	46. 3
Rhi (F kfu Ma in A rt, ne rea ran Dar tad t, W ies bad en) ms	3,6 65	2,0 34	27, 766	1,7 72	1.6	171	165	7.9 0	4.0	21. 5	3.5	42. 1
Rhi nel and (Co log Dü ldo rf, ne, sse n) Bon	3,3 90	1,6 62	29, 657	1,9 86	2.7	170	162	6.9 8	3.3	20. 0	3.1	28. 1
Sou the rn R uhr Ar (Do und rtm ea , chu m) Ess Bo en,	3,1 75	1,1 58	43, 798	2,6 79	3.6	187	180	5.8 3	4.7	17. 0	2.9	31. 4
sde Dre n	3,0 06	1,2 86	38, 582	2,1 95	3.0	162	152	5.9 4	3.3	18. 6	3.7	31. 8
bur Ham g	2,3 58	1,8 06	20, 065	1,2 72	1.7	108	103	6.8 5	4.0	21. 9	3.3	43. 0
Mu nic h	1,8 98	2,9 02	9,6 70	636	0.9	64	60	7.9 5	4.1	29. 8	4.8	56. 8
Stu ttg art	1,8 33	2,0 00	14, 097	887	1.9	84	81	7.7 2	3.5	21. 7	3.1	40. 6
l Kie	1,8 26	1,2 96	23, 474	1,3 51	2.0	102	97	6.0 7	6.2	17. 9	3.2	39. 6
Han ove r	27 1,5	63 1,4	16, 251	1,0 24	3.1	79	76	6.3 6	4.2	19. 4	2.9	39. 2
the Ruh (Du isb Nor r Ar rn ea urg , Ge lse nki rch en)	1,4 59	885	26, 335	1,6 27	3.5	108	105	5.5 5	4.4	13. 5	2.4	25. 7
Bre me n	1,0 49	1,3 85	12, 053	732	3.9	50	47	5.5 7	3.0	21. 1	3.6	30. 0
Lei pzig	811	1,3 07	9,1 61	587	3.9	42	40	5.8 8	2.9	19. 1	2.9	23. 3
We hal ia (Mü Osn abr ück ) stp nst er,	737	1,1 83	9,4 96	616	3.0	43	42	5.8 6	6.0	17. 1	3.0	41. 3
Fre ibu rg	556	1,9 94	4,0 41	276	1.9	24	23	7.1 9	4.7	23. 2	4.1	45. 1
Oth er S tra teg ic L tion oca s	2,3 62	1,3 69	26, 611	1,6 87	2.8	132	127	6.4 6	4.7	17. 8	3.3	41. 3
al S ic L tio Tot tra teg oca ns Ge rm any	36, 00 3	79 1,5	35 5,0 49	22, 132	2.6	53 1,7	1,6 74	6.4 7	4.1	20 .5	3.4	36 .4
Aus tria	2,4 72	1,3 12	23, 238	1,7 34	4.4	107	90	4.5 3	_	23. 0	n/a	n/a
Sw ede n	1,6 38	1,4 98	14, 051	997	1.3	115	107	9.0 3	_	14. 2	n/a	n/a

Note: In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden, for example, includes certain ancillary costs. The table above shows the rental level unadjusted to the German definition.¹Fair value of the developed land excluding €1,310.7m, of which €355.6m undeveloped land and inheritable building rights granted, €269.3m assets under construction, € 436m development and €249.7m other. Data for Strategic Locations also includes Recurring Sales assets in those markets.

( fo Se 3 0, 2 0 1 8 ro rm a	de l Re i nt ia s	lac In t -p e r en	Va rat ca nc y e		lue Fa ir v 1 a
) p p	its un	( /sq /m h ) € t m on	( ) %	( bn ) €	f t l % ota o	( /m ²) €
Op te era	2 0, 3 3 1 1	6. 6 5	2.4	2.4 1	3 0 %	8 1, 5 4
Inv t es	2 0 6, 6 11	6. 4 0	2.7	2 0. 4	5 0 %	1, 5 8 2
bt l S ic lus Su ot tra te C te a g rs	3 2 6, 74 4	6. 6 4	2. 6	3 2.7	8 % 1	6 9 1, 5
2 Sa les Re rri cu ng	2 9, 3 3 0	6. 6 1	3. 2	3. 4	8 %	1, 6 7 3
Se l l	7, 3 7 2	5. 4 3	5. 3	0. 4	1 %	8 8 4. 8
l Ge To ta rm an y	3 6 3, 44 6	6. 45	2.7	3 6. 5	9 0 %	1, 5 6 4
Au str ia	2 3, 2 3 8	3 4. 5	4.4	2.5	6 %	3 2 1, 1
Sw de e n	14 0 5 1 ,	9. 0 3	1. 3	1. 6	4 %	1, 4 9 8

Note: In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden, for example, includes certain ancillary costs. The table above shows the rental level unadjusted to the German definition.¹Fair value of the developed land excluding €1,310.7m, of which €355.6m undeveloped land and inheritable building rights granted, €269.3m assets under construction, € 436.0m development and €249.7m other.

Including all units that have been legally prepared for retail sales by way of separate land register entries.

€ m (un les s in dic d o the ise ) ate rw	9 M 2 0 8 1	9 M 2 0 1 7	D l t e a	/ 1 € 1 2. 7 9 sq m
					1 € 0 3 / 1 1. sq m
				3. 5 1	2. 3 5
Ex fo in t p e ns e s r m a e na nc e	2 0 2. 2	9 2. 2 1	2 % 5.
l d C i ize in t t a p a m a e na nc e	6. 7 5	2. 0 5	% 4 7. 1	9. 2 8	8. 6 8
l To t a	2 8. 7 7	2 2 4 4.	0 % 1 4.
Ma in i l iza io t t t e na nc e c a p a n io t ra	2 7 %	2 1 %		9 M 2 0 1 8 fo Ex in p en se s r m a	9 M 2 0 1 7 l d te Ca i ta ize in te na nc e p m a na nc e

after

Key metrics – Dortmund, Töpferstraße

• € 1.1m invest (€ 554/sqm)
• Increase in living space: + 10 sqm (balcony extension)
• Gross rent
• before modernization: € 5.05/sqm
• after modernization: € 6.79/sqm
• Vacancy rate
• before modernization: 7.4%
• Rate of vacancy after modernization: 0.0%
• Yield (rent & vacancy): 5.9%
• IRR: 8.5%

Case Study Space Creation

Construction methods : modular and conventional

1. Housekeeping

Moduls of steel, wood or concrete

1. Business update

Current projects in Bochum, Cologne, Dresden, Bremen, etc.

Key metrics – Bochum, Kaulbachstraße

• 3 multi-family houses with 42 units
• Size of units: 49 sqm 115 sqm
• Gross rent: €9.70/sqm
• Modular steel construction
• General contractor: ALHO
• Date of completion: April 2018
• 7 months of construction
• € 6.1m invest (€2,133/sqm)
• 7.3% IRR (without land)

Example – Bochum, Kaulbachstraße

1. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

floor plan

look inside

Source: Dealogic, Bloomberg, Broker research, Deutsche Bundesbank, Verband deutscher Pfandbriefbanken (VdP), FactSet as of November 16, 2018

Quarterly Mortgage Pfandbrief issuances for 2005-2012 based on equal distribution of annual issuances based on VdP data; 2013 -3Q2018 figures based on Deutsche Bundesbank

Corporate bond issuance volume includes senior unsecured and hybrid bonds ≥ €50m, issued in EUR in Western Europe

Excludes Mortgage Pfandbriefe and CMBS for September 2018, Convertibles for 3Q18 as data not yet available

Currently used by Vonovia

D	i i T e c s o n r e e	S F i i n a n c n g o u	r c e s
	1. Hig hlig hts	2. Bu sin dat ess up e	3. Ho kee ing use p	4. Gu ida 20 19 nce	5. Wr ap -up	6. Ap nd ix pe

Covenants and KPIs (September 30, 2018)

1. Business update3. Housekeeping

2. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

d B K P I o n s	C t o v e n a n	l L e v e	3 0, 2 0 8 S 1 e p
	L T V	6 0 %
	l b / l T t D t T t A t o a e o a s s e s	<	4 2 %
	S d L T V e c e u r	4 5 % <	1 2 %
	S d D b / T l A t t t e c e e o a s s e s u r
	1 I C R	1. 8 0 > x	5. 4 x
	/ L t 1 2 M E B I T D A L t 1 2 M I t t E a s a s n e r e s x p e n s e
	U b d A t n e n c m e e s s e s u r	1 2 5 % >	2 1 0 %
	U b d A / U d D b t t n e n c m e e s s e s n s e c e e u r u r

R i K P I t a n g s	C t o e n a n v	L l ( B B B ) + e e v
	D b C i l t t t e o a p a
	T l D b / T l E i T l D b t t t t t t + o a e o a q o a e u y	6 0 % <
	I C R
	/ L t 1 2 M E B I T D A L t 1 2 M I t t E a s a s n e r e s x p e n s e	1. 8 0 > x

d / B R o n s a
1. Hig hlig hts	2. Bu sin dat ess up e	3. Ho kee use	ing p	4. Gu ida 20 19 nce	5. Wr ap -up	6. Ap nd ix pe
Co te In tm rp or a ve s	de in t g t en ra ra g			as of 201 8-08 -02
tin Ra g a ge nc y	tin Ra g	tlo ok Ou	da La st Up	te
nd ard r's Sta & Poo	BB B+	ble Sta	02 Au 20 g	18

Bond ratings

Na me	Te r & Co no on up	IS IN	as of 201 8-08 Am nt ou	-02 Iss ice ue pr	Co on up	Fin al Ma tu rit y Da	Ra tin g
Bo nd 00 2 ( EU R-B d) on	6 y 3.1 25 % ea rs	DE 00 0A 1H NW 52	€ 60 0m	99 .93 5%	3.1 25 %	te 25 Jul 20 19 y	BB B+
Bo nd 00 4 ( US D- Bo nd )	10 5. 00 0% ye ars	US 25 15 5FA B2 2	US D 2 50 m	98 .99 3%	1 4.5 80 %	02 Oc t 2 02 3	BB B+
Bo nd 00 5 ( EM TN )	8 y 3.6 25 % ea rs	DE 00 0A 1H RV D5	€ 50 0m	99 .84 3%	3.6 25 %	08 Oc t 2 02 1	BB B+
Bo nd 00 6 ( Hy bri d)	60 4. 62 5% ye ars	XS 10 28 95 96 71	€ 70 0m	99 .78 2%	4.6 25 %	08 Ap r 2 07 4	BB B
nd 7 ( ) Bo 00 EM TN	8 y 2.1 25 % ea rs	DE 00 0A 1Z LU N1	€ 50 0m	99 .41 2%	2.1 25 %	Jul 09 20 22 y	BB B+
nd 8 ( bri d) Bo 00 Hy	l 4 tua % pe rpe	XS 11 17 30 08 37	€ 1, 00 0m	100 .00 0%	4.0 00 %	l tua pe rpe	BB B
nd 00 9A ( ) Bo EM TN	0.8 5 y 75 % ea rs	00 0A 97 DE 1ZY 1	50 0m €	99 .26 3%	0.8 75 %	30 r 2 02 0 Ma	BB B+
nd 00 9B ( ) Bo EM TN	10 50 0% 1. ye ars	00 0A 98 9 DE 1ZY	€ 50 0m	98 5% .45	00 % 1.5	31 r 2 02 Ma 5	BB B+
Bo nd 01 0B ( EM TN )	5 y 1.6 25 % ea rs	DE 00 0A 18V 138	€ 1, 25 0m	99 .85 2%	1.6 25 %	15 De c 2 02 0	BB B+
nd 01 0C ( ) Bo EM TN	8 y 2.2 50 % ea rs	00 0A 18V 146 DE	€ 00 0m 1,	99 .08 5%	2.2 50 %	c 2 02 3 15 De	BB B+
nd 01 1A ( ) Bo EM TN	6 y 0.8 % 75 ea rs	00 0A 18 2V S4 DE	€ 50 0m	99 .53 0%	0.8 % 75	10 20 22 Jun	BB B+
Bo nd 01 1B ( EM TN )	10 1. 50 0% ye ars	DE 00 0A 18 2V T2	€ 50 0m	99 .16 5%	1.5 00 %	10 Jun 20 26	BB B+
Bo nd 01 3 ( EM TN )	8 y 1.2 50 % ea rs	DE 00 0A 189 ZX 0	€ 1, 00 0m	99 .03 7%	1.2 50 %	06 De c 2 02 4	BB B+
Bo nd 01 4A ( EM TN )	5 y 0.7 50 % ea rs	DE 00 0A 19 B8 D4	€ 50 0m	99 .86 3%	0.7 50 %	25 Jan 20 22	BB B+
Bo nd 01 4B ( EM TN )	10 1. 75 0% ye ars	DE 00 0A 19 B8 E2	€ 50 0m	99 .26 6%	1.7 50 %	25 Jan 20 27	BB B+
nd 5 ( ) Bo 01 EM TN	8 y 1.1 25 % ea rs	DE 00 0A 19 NS 93	€ 50 0m	99 .38 6%	1.1 25 %	08 Se 20 25 p	BB B+
Bo nd 01 6 ( EM TN )	2 y 3M EU RIB OR +0 .35 0% ea rs	DE 00 0A 19S E1 1	€ 50 0m	100 .44 8%	3M EU RIB OR +0 .35 0%	20 No v 2 01 9	BB B+
nd ( ) Bo 01 7A EM TN	6 y 0.7 50 % ea rs	DE 00 0A 19 UR 61	€ 50 0m	99 .33 0%	0.7 50 %	15 Jan 20 24	BB B+
nd ( ) Bo 01 7B EM TN	10 1. 50 0% ye ars	DE 00 0A 19 UR 79	€ 50 0m	99 .43 9%	1.5 00 %	14 Jan 20 28	BB B+
nd ( ) Bo 01 8A EM TN	4.7 5 y 3M EU RIB OR +0 .45 0% ea rs	DE 00 0A 19X 79 3	€ 60 0m	100 .00 0%	hed d 0.7 93 % ge	22 De c 2 02 2	BB B+
nd 01 8B ( ) Bo EM TN	8 y 00 % 1.5 ea rs	00 0A 19X 8A DE 4	€ 50 0m	99 .18 8%	00 % 1.5	22 r 2 02 6 Ma	BB B+
nd 01 8C ( ) Bo EM TN	12 2. 12 5% ye ars	00 0A 19X 8B 2 DE	€ 50 0m	98 .96 7%	2.1 25 %	22 r 2 03 0 Ma	BB B+
Bo nd 01 8D ( EM TN )	20 2. 75 0% ye ars	DE 00 0A 19X 8C 0	€ 50 0m	97 .89 6%	2.7 50 %	22 Ma r 2 03 8	BB B+
Bo nd 01 9 ( EM TN )	5 y 0.8 75 % ea rs	DE 00 0A 19 2Z H7	€ 50 0m	99 .43 7%	0.8 75 %	03 Jul 20 23	BB B+

EUR-equivalent Coupon

La is it ion rg er a cq u s					Fa ir Va lue		In lac nt -p e re
r a e Y	l De a	Re l un i de ia nt s its #	ion T O P Lo t ca s	is it ion @ Ac q u	Se 3 0, 2 0 1 8 p	∆	is it ion @ Ac q u	Se 3 0, 2 0 1 8 p	∆
4 1	G DE WA	3 0 0 11 ,	Be lin Ha bu r m rg, , log k fur / Co Fra t Ma in ne n ,	3 1, 44	2, 0 6 5	% 5 4	6. 6 7	8 7.7	% 15
0 2	VI TU S	2 0, 5 0 0	Br Kie l em en ,	8 0 7	1, 3 5 0	6 7 %	5. 0 6	5. 7 3	1 3 %
	GA GF AH	14 4, 6 0 0	de lin Dr Be es n, r , Ha bu m rg	8 8 9	1, 5 1 6	71 %	5. 4 0	6. 25	1 6 %
5 1 0 2	FR AN C O NI A	4, 1 0 0	lin de Be Dr r es n ,	1, 0 44	1, 74 4	6 7 %	5. 8 2	6. 5 1	1 2 %
	Ü S O DE W	9, 0 0 1 4	St Ka lsr he utt art g r u , , he lm Ma im U nn ,	3 8 0 1,	8 6 1, 4	3 % 4	6. 8 3	0 7.4	8 %
6 1 0 2	GR AI NG ER	2, 4 0 0	Mu nic h, Ma he im nn	1, 5 0 1	2, 0 3 1	3 5 %	7. 0 9	7. 8 1	1 0 %
	C O NW ER T ( Ge & Au ia ) str rm an y	2 3, 4 0 0	lin Be Le ip zig r , , Po da V ien ts m, na	1, 3 5 3	1, 71 8	27 %	5. 8 8	6. 27	7 %
7 1 0 2	he f G t reo er ma ny	21 2 0 0 ,	lin da Be Le ip zig Po ts r m , ,	1, 21 8	1, 6 0 1	3 1 %	5. 8 6	6. 2 2	6 %
	he f A t tr ia reo us	2, 2 0 0	Vie nn a	9 8 6 1,	2, 3 45	8 % 1	6. 11	6. 6 7	9 %

Acquisition Track Record

1. Business update3. Housekeeping

2. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Note: Without most recent acquisitions in 2018

4+1 Strategy Has Evolved into 4+2 Strategy

9M 2018 Earnings Call

C i t o n s e r v a v e	l V i L t a u a o n e v e	l s
1. Hig hlig hts	2. Bu sin dat ess up e	3. Ho kee ing use p	4. Gu ida 20 19 nce	5. Wr ap -up	6. Ap nd ix pe

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

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

Vonovia location

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

Source: Factset

l f h R i i i S O t t e c o n c a o n o a e s r u Hig hlig hts 2. sin dat 1. Bu ess up e	d i t s a n n g 3. kee ing Ho use p	Gu ida 20 19 6. nd ix 4. 5. Wr Ap nce ap -up pe
D t a e	O S N H ( i l l i ) m o n	C t o m m e n
b 3 2 0 6 D 1, 1 e c e m e r	6 6 0 4
h M 3 1, 2 0 1 7 a c r	4 6 8 8	i i i t t c o n e a c q s o n w r u
3 0 2 0 J 1 7 u n e ,	6 4 7 5	S i d i i d d c r p v e n
b S 3 0 2 0 1 7 t e p e m e r ,	8 4 5 1	f h b d G a g a c r o s s- o r e r m e r g e r
b D 3 1, 2 0 1 7 e c e m e r	4 8 5 1
h 3 2 0 8 M 1, 1 a r c	8 4 5 1
3 0 2 0 1 8 J u n e ,	1 8 1 5	€ 1 b i 0 / 2 0 1 8 i d i i d d A B B 5 n n ; s c r p v e n
8 S 3 0 2 0 1 e p ,	8 5 1 1

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

German Residential – Safe Harbor and Low Risk 2. Business update 3. Housekeeping4. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Rental regulation safeguards high degree of stability

• Contrary to most other jurisdictions such as the USA, rental growth in Germany is regulated and not directly linked to CPI, GDP development etc.
• Rents are regulated via "Mietspiegel" (city-specific rent indices), which look at the asking rents of the previous four years to determine a rent growth level for existing tenants for the next two years.

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

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

2. Business update 3. Housekeeping4. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

New supply falls short of demand

• Consensus estimates see a current shortage of around 1 million apartments in urban areas. Three main constraints stand in the way of material changes in the short and even medium term:
• Building permits often take several years because city administrations lack qualified personnel.
• Severe shortage of building capacity after years of downsizing.
• Substantial gap between in-place values and market replacement costs render construction in affordablesegment economically unfeasible.

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

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

No Correlation between Interest Rates and Asset Yields

1. Business update3. Housekeeping

2. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

Valuation methodology for German residential properties is primarily based on market prices for assets – not on interest rates

• While market prices are affected by general interest rate levels, there is no significant correlation.
• Other factors such as supply/demand imbalance, rental regulation, market rent growth, location of assets etc. outweigh the impact of interest rates when it comes to pricing residential real estate.
• The steep decline in interest rates (down by 760bps since 1992) is not mirrored by asset yields (down by 160bps since 1992).

Yearly asset yields vs. rolling 200d average of 10y interest ratesSources: Thomson Reuters, bulwiengesa

Three Valuation Layers with Different Volatilities 2. Business update 3. Housekeeping4. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

High degree of stability and predictability of underlying business (layer 1) and portfolio valuation (layer 2) is not reflected in share price development (layer 3), as equity markets appear to apply valuation parameters that are substantially less material for Vonovia's operating performance.

9M 2018 Earnings Call

Total remuneration cap

Share Holding Provision

• •Mandatory share ownership

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

• Bonus cap at predetermined amount

• Cash payout

• FFO1is key figure in the industry for managing the sustained operational earnings power of our business.

• Adj. NAV/share as standard figure for the value of our property assets (calculation according to EPRA best practice standards, after corrections for goodwill).
• EBITDA Sales: Measure of success of our sales activities.

• Personal targets related to individual department responsibilities or overlapping targets (e.g. integration projects).

• LTIP aims to ensure that remuneration structure focuses on sustainable corporate development.

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

Rationale

Modular Construction

1. Business update

2. Housekeeping

3. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

9M 2018 Earnings Call

1. Business update3. Housekeeping

2. Guidance ²⁰¹⁹ 5. Wrap-up 6. Appendix

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Tables and diagrams may include rounding effects.