Vonovia SE — Call Transcript 2018

May 3, 2018

Q1 2018 Earnings CallMay 3, 2018

Rolf Buch, CEODr. A. Stefan Kirsten, CFO

d A g e n a
hlig hts 1. Hig	2. Q 1 2 01 8 r lts esu	3. kee Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

1	h l h H i i t g g s
2	l Q 1 2 0 1 8 t e s s r u
3	k H i o u s e e e p n g
4	W r a p -u p
5	d A i p p e n x

h l h H i i t g g s
1. Hig hlig hts	2. Q 1 2 01 8 r lts 3. Ho kee esu use	ing 4. Wr p ap -up	5. Ap nd ix pe
O i t p e r a o n s	f Or ic h 4. 2 % t g t g an re n ro w o y -o -y l o du d by 2 3 % Re ta t in 1. n p er a g ex p en se s re ce l he do b le fro im in t in t t s tr tu e a g co s uc re m c u d A j. E B I T D A Op io 5. 2 % € 3 t to er a ns u p y -o -y d j. Op io in ( in A E B I T D A t te er a ns m ar g ex . m a	€ 3. 9m l f c d to 5 t o t in a s a re su on ue lu de d Q 2 0 t in in 1 1 7. on we c r 1 5. 7m in Q 1 2 0 1 8. ) 8 9. 9 % in Q 2 0 8 fro to 1 1 na nc e up m	f f d ic ie in e nc g a s an y 8 8. 6 % in 2 0 F Y 1 7.
F F O 1	d by F F O 1 in 1 1. 6 % to € 2 4 3. 6m ea se -o cr y -y On ha ba is, F F O 1 € 0. 5 0, 7. a p er -s re s wa s u p	in Q 1 2 0 1 8. 9 % y -o -y
B U W O G	l low he ha f c l o h 2 6, Fo in t tro Ma g c ng e o on n rc 's he he f Vo ia Q 1 ts t i t a no ac co un re as p ro n v w , 2 0 1 8. ia 's ke in O G f i l 3 0 Vo ta B U W Ap no v s as o r wa l d he d f Op io in io t te t ta te t t er a na g ra n s r a e n o bu d be fu l ly le d by in is te to te s es s ex p ec co m p	2 0 8, he ba la he da f 1 t t ta B U nc e s e o d lo da d h f low l l o ly ta i ss a n ca s s n w % 7 7. 4 s h d he f Ma in io B U W O G t te t rc an g ra n o he d f h is t t e n o y ea r.	O lu de d W G is in in c be lu de d in ta t in Q 2 c s g r 's Ge in t rm an o p er a g
d G i a n c e u	d da by ha In 2 0 1 8 F F O 1 i t cr ea se g u nc e m or e € 0m ia d- lo im 4 Vo ta no v s n a ne p ro ve m low in d te t ta er re s an x ex p en se bu d fro € 3 0m tr i t io te B U on n ex p ec m c	7 % € 1, 0 3 0m € 1, 0 5 0m to n : - d fro h ig he l in ts te ta en e xp ec m r r en co W O G	low ba d t m e, er c os se a n

f 9 % O G h S l l l i 7 F F 1 P B t t o o n a m a e o o o a s e -o r w r r y -y
hlig hts 1. Hig	lts 2. Q 1 2 01 8 r esu	kee 3. Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

• Excluding BUWOG, the average number of square meters declined by 2.9% as a result of disposals.
• On this smaller portfolio base, Adj. EBITDA Operations was up 5.2% driven by higher rental income and lower operating expenses. Combined with reduced interest expenses the FFO per share was up 7.9%.

be lu d Nu in B U W O G m rs ex c g		Q 1 2 0 1 8	Q 1 2 0 1 7	De l ta
be f r de l s Av i t ia er ag e nu m r o es n q m	`0 0 0	2 6 2 9 1,	2 2, 2 6 7	-2 9 %
Av be f r i de ia l u i t ts er ag e nu m r o es n n	#	3 4 5, 9 0 7	3 5 6, 4 1 1	-2 9 %
Or ic h ( ) t g t g an re n ro w y- o- y	%	4. 2	3. 4	8 0 bp + s
la ( ) In -p ce r en eo p	€ /m h /sq t on m	6. 3 4	6. 0 6	4. 6 % +
t ( ) Va te ca nc y ra eo p	%	2. 7	2. 7	-- -
l Re ta in n co m e	€m	8. 3 4 1	2 4 1 7.	0. 3 % +	€ 1. 1m +
Ma in te na nc e ex p en se s	€m	-6 2 1.	-6 3. 1	-3 0 %
Op t in er a g ex p en se s	€m	3. 9 -5	-6 8. 5	-2 3 % 1.
A d j. E B I T D A Re l ta n	€m	3 0 3. 2	2 8 5. 6	6. 2 % +	€ 1 7. 6m +
d lu d d A j. E B I T D A Va Bu in e- a s es s	€m	1 7. 8	1 9. 8	-1 0. 1 %
d A j. E B I T D A Op t io er a ns	€m	3 1 5. 7	3 0 0. 1	5. 2 % +	€ 1 5. 6m +
O In te t e F F re s xp en se	€m	-6 7. 7	6. 8 -7	8 % -1 1.
Cu in O 1 t ta F F rre n co m e xe s	€m	-4 4	1 -5	-1 3. % 7
F F O 1	€m	2 4 3. 6	2 1 8. 2	1 1. 6 % +	€ 2 5. 4m +
ha ( ) F F O 1 N O S H p er s re eo p	€	0. 5 0	0. 4 7	7. 9 % +
ha ( ) F F O 1 N O S H p er s re av g.	€	0. 5 0	0. 4 7	7. 3 % +

G h S l l l h R i i A i P t t t t e n r o w n c c e e r a o n a s e
hlig hts 1. Hig	2. Q 1 2 01 8 r esu	lts	3. Ho use	kee ing p	4.	Wr ap -up			nd 5. Ap pe	ix
				Po i iv t t g s e re n	h t tra ro w	j to ec ry
h dr iv ( la ) Re t g t t 1 2 M n ro w er s s	Q 0 8 1 2 1	Q 0 1 2 1 7	l De ta		2 0 1 3	2 0 14	2 0 15	2 0 1 6	2 0 17	( ) 2 0 1 8 E
				ke dr Ma t ive r n	6 % 1.	6 % 1.	% 1.7	% 1.5	6 % 1.	≈
S i ing t t te ts na n ( inc l. bs i d ize d ) ts su re n	% 1. 1	% 1. 1	--	de iza ion Mo t rn	0. % 4	0. 9 %	1. 2 %	1. 8 %	2.5 %
le Ne t t ing w s	0. % 5	0. % 5	--	Sp ion t ac e c rea	---	---	---	---	0. 1 %
Su b l to ta ke dr iv h t- t g t m ar en re n ro w	1. 6 %	1. 6 %	--	Or ic nt g an re h wt g ro	1. 9 %	2. 5 %	2. 9 %	3. 3 %	4. 2 %	6 % 4. - 4. 8 %
de iza ion Mo t rn	2. 5 %	1. 7 %	8 0 bp + s	In tm t tra ve s en io t sp ac e cr ea n	k c re co )	d ( €m r ;	lu de in c	de s m o rn	iza t io n	d an
Su b l l- f- l r h to ta t g t en ro w	4. 1 %	3. 3 %	8 0 bp + s					7	7 9	1, 0 0 0 ~
Sp ion t ac e cr ea	0. 1 %	0. 1 %	--			3 5 6	4 7 2
Su b l o ic h to ta t g t rg an re n ro w	4. 2 %	3. 4 %	bp 8 0 + s	7 1 2 0 1 3 2	1 7 2 0 1 4	2 0 1 5	2 0 1 6	2	0 1 7 2	0 1 8+ ( E )

Continued EBITDA Margin Expansion

1. Q1 2018 results 3. Housekeeping

2. Wrap-up 5. Appendix

3. 6.2% EBITDA Rental growth driven largely by ongoing efficiency gains and elimination of the conwertcosts that were included in Q1 2017.

4. Adj. EBITDA Operations per unit is up 8.4% to €913 from €842 in the prior-year period.
5. EBITDA Operations margin expansion (excl. maintenance) to 89.9%.

€m (un les s in dic d o the ise ) ate rw	Q 1 2 0 1 8	Q 1 2 0 1 7	De l ta
Re l inc ta n om e	8. 3 4 1	2 4 1 7.	0. 3 % +
Ma in te na nc e ex p en se s	-6 1. 2	-6 3. 1	-3 0 %
Op ing t er a e xp en se s	-5 3. 9	-6 8. 5	-2 1. 3 %
d j. l A E B I T D A Re ta n	3 0 3. 2	2 8 5. 6	6. 2 % +
In co me	2 6 9 5.	2 8 1 5.	2 3. 2 % +
f w h ic h l te o ex rn a	5 2. 0	5 1. 4	1. 2 % +
f w h h l ic in te o rn a	2 1 3. 9	1 6 4. 4	3 0. 1 % +
Op t ing er a e xp en se s	-2 4 8. 1	-1 9 6. 0	2 6. 6 % +
A d j. E B I T D A Va lu d d Bu in e- a s es s	8 1 7.	9. 8 1	0. % -1 1
1 d he A j. E B I T D A O t r	3 -5	3 -5	0. 0 % +
A d j. E B I T D A Op io t er a ns	3 1 5. 7	3 0 0. 1	2 % 5. +

Mainly consolidation

O S h F F 1 p e a e r r	9 % U 7 p
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe

• Driven by better operational performance and lower interest expenses, FFO1 per share was up 7.9% y-o-y.
• Compared to Q4 2017 the Q1 2018 FFO per share (eop) was up €0.02 (4.2%).

€ m ( les d d he ) in ica ise te t un s o rw	Q 1 2 0 1 8	Q 1 2 0 1 7	l D t e a
d A j. E B I T D A O io t p er a ns	3 1 5. 7	3 0 0. 1	5. 2 % +
In F F O t t er e s ex p e ns e	-6 7. 7	-7 6. 8	-1 1. 8 %
Cu O t in t F F 1 e n o m e e rr c ax s	-4 4	-5 1	-1 3. 7 %
O F F 1	2 4 3. 6	2 1 8. 2	1 1. 6 % +
f w h h bu b le ha ho l d ic t tr i t t Vo ia o a a o no v s re er s	2 3 0. 8	2 0 6. 2	1 1. 9 % +
f w h h bu b le hy br d l ic t tr i t t Vo ia i i t in t o a a o no v c a p a ve s or s	1 0. 0	1 0. 0	0. 0 %
f w h ic h i bu b le l l in in t tr t t tr t t o a a o no n- c o n o g er e s s	2. 8	2. 0	4 0. 0 % +
C i l ize d in t t a p a m a e na nc e	-2 6 1.	3. 6 -1	8. 8 % 5 +
O A F F	2 2 2. 0	2 0 6 4.	8. % 5 +
A d j d E B I T D A S le t u s e a s	1 5. 7	9. 1 1	8 % -1 7.
Cu in S le t t rr e n c o m e ax e s a s	-7 4	-1 1. 0	-3 2. % 7
F F O 2	2 5 1. 9	2 2 6. 3	3 % 1 1.
/ ha ( ) F F O 1 € N O S H s re e o p	0. 0 5	0. 4 7	9 % 7. +
/ ha ( ) F F O 1 € N O S H s re av g.	0. 5 0	0. 4 7	7. 3 % +

d S h A j. N A V p e a r	e r
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe

• Adj. NAV per share is up 22.1% y-o-y.
• Compared to YE2017, Adj. NAV per share is down 1.1%, as expected, following the inclusion of BUWOG.
• This slight dilutive impact will reverse once the BUWOG value growth, development potential and synergies start materializing.

€m (un les ind ica ted oth ise ) erw s	M 3 1, ar 2 0 1 8	De 3 1, c 2 0 1 7	M 3 1, ar 2 0 1 7
Eq i i bu b le Vo ia 's ha ho l de ty t tr ta to u a no v s re rs	1 5, 2 2 1. 6	1 5, 0 8 0. 8	1 2, 7 0 6. 5
fe d in ie d he l d fo De ta tm t p t ts rre xe s on ve s en ro p er s an as se r le sa	6, 6 4 3. 5	6, 1 8 5. 7	4, 8 2 7. 4
1 f f Fa ir lu de iv iv in ia l in t tr ts va e o r a e an c s um en	7 2. 5	2 6. 9	2 9. 0
fe d de f l De ta iv t iv in ia in tr ts rre xe s on a e an c s um en r	-2 6 1.	-8 8	-1 4. 3
E P R A N A V	2 1, 9 1 6. 0	2 1, 2 8 4. 6	1 7, 5 4 8. 6
dw l l Go i o	-3 8. 4 4 7 ,	-2 6 3. 1 5 ,	-2 9 3 8 1. ,
A d j. N A V	1 8, 4 6 7. 3	1 8, 6 7 1. 1	1 4, 6 1 6. 8
/ ha E P R A N A V € s re	4 5. 1 8	4 3. 8 8	3 7. 4 3
d j. € / ha A N A V s re	3 8. 0 7	3 8. 9 4	3 8 1. 1

Adjusted for effects from cross currency swaps.

Smooth Maturity Profile with Diverse Funding Mix

incl. BUWOG loans assumed as mortgages. ² Average financing cost of debt maturing in the relevant year. ³ Weighted avg. financing costs excl. Equity Hybrid. Including Equity Hybrid avg. interest rate of debt maturing in 2021 is 3.6%. 4all numbers incl. BUWOG. ⁵ excl. Equity Hybrid.

l d f L T V T i U E T R t t e m p o r a r y a p p e r n o a r g e a n g e
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. kee ing Ho use p	4. Wr ap -up	nd ix 5. Ap pe

Following the all-debt settlement of the first acceptance period for BUWOG the LTV moved slightly above the upper end of the 40% - 45% target range.

€m (un les ind ica ted oth ise ) s erw	M 3 1, 2 0 1 8 ar	De 3 1, 2 0 1 7 c	M 3 1, 2 0 1 7 ar
No de iva ive f ina ia l l ia b i l i ies t t n- nc r	8, 8 8 0 1 7.	0 6 0. 1 4, 5	3 3 1 4, 4 5.
ha f fe Fo ig te ts re n ex c ng e ra e c	8 -1 7.	-2 3. 5	9 8 -1 4.
Ca h d h iva len ts s an ca s eq u	-8 2 9. 3	-2 6 6. 2	-1 0 0 7. 9 ,
Ne de b t t	8, 0 3 9. 9 1	3, 0. 8 1 7 7	3, 3 1 2 2. 6
les b les / dv fro les Sa iva ts re ce a an ce p ay me n m sa	-2 3 2. 4	-2 0 2 1.	-1 4 4. 4
d d i ion l loa fo d ing is i ion A t t ts ta t a n a mo un r o u n a cq u s	-- -	-- -	2 7 5. 0
A d j. de b t t ne	8 1 7, 0 7. 5	1 3, 5 6 9. 6	1 3, 3 6 3. 2
ir lue f r l e fo l io Fa ta te t va o ea s p or	3 8, 4 8 5. 6	3 3, 4 3 6. 3	2 9, 6 0 7. 6
S ha in he l e ies t ta te re s o r r ea s co m p an	6 6 6. 6	6 4 2. 2	5 2 0. 4
d j. fa ir lu f r l e fo l io A ta te t va e o ea s p or	3 9, 1 5 2. 2	3 4, 0 7 8. 5	3 0, 1 2 8. 0
L T V	% 4 5. 5	3 9. 8 %	% 4 4. 4

bt l S ic lus Su ot tra te C te a g rs	3 4 6, 41 0	6. 3 6	2. 5	3 2, 9 8 8. 6	8 8 %
Pri ize t va	1 3, 5 9 0	6. 1 8	4. 0	1, 4 6 4. 5	4 %
Se l l	1 0, 2 6 0	4. 97	9. 0	4 8 8. 3	1 %
l To ta Ge rm an y	3 0, 0 7 2 6	3 6. 1	2. 7	3 94 4, 1.4	9 3 %
Au str ia	2 3, 3 9 7	0 4.4	4. 5	2, 47 1.4	7 %
To l R i de ia l P fo l io ta nt t es or	3 9 3, 6 3 9	6. 1 8	2. 8	3 7, 41 2. 8	1 0 0 %

1 Fair value of the developed land excluding €1,072.8m, of which €391,4m for undeveloped land and inheritable building rights, €203.9m assets under construction, €404.6m development and €72.9m other.

Growing Contribution from Value-add Business

ResidentialEnvironment

…

SmartMetering

^{2014 2015 2016 2017} 2018(E)

Pre-tax WACC of 4.68% as per Dec. 31, 2017. ² Gardening and landscaping work

l d h l S S C i i t F t A t t t M a e s e a a s o a a c e a g n s y w r v r –
hlig hts 1. Hig	lts 2. Q 1 2 01 8 r esu	kee 3. Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

• In spite of value growth of the portfolio, privatization fair value step-ups still came out to 27.6% for Q1 2018 (adjusted for the small block sales in this segment the fair value step-up was 32.8%).
• The sell portfolio disposals saw a record fair value step-up of 15.9% in Q1 2018, driven largely by two block sales, as we are utilizing the high market liquidity to profitably dispose of our Sell Portfolio.
• The income and fair value figures of the Sell Portfolio for the prior-year period include a substantial amount of commercial property sales.

	Pr iv ize t a	Po fo l io t r		Se l l Po fo l io t r		T O T A L
€m (un less ind icat ed o the rwis e)	Q 1 2 0 1 8	Q 1 2 0 1 7	Q 1 2 0 1 8	Q 1 2 0 1 7	Q 1 2 0 1 8	Q 1 2 0 1 7
de l u l d Re i ia i t ts s n n so	5 9 4	5 3 5	1, 1 4 9	1, 1 5 7	1, 7 4 3	1, 6 9 2
In fro d isp ls co me m os a	6 7. 1	7 2. 0	4 6. 9	4 2 0. 2	1 1 4. 0	4 9 2. 2
Fa ir lue f d isp ls va o os a	-5 2. 6	-5 4. 9	-4 0. 5	-4 1 0. 9	-9 3. 1	-4 6 5. 8
d f fro d ls A j. i t isp p ro m os a	1 4. 5	1 7. 1	6. 4	9. 3	2 0. 9	2 6. 4
lue ( ) Fa ir te % va s p- up	2 6 % 7.	3 % 1. 1	9 % 1 5.	2. 3 %

Se l l ing ts co s	-5 2	-7 3
A d j. E B I T D A Sa les	1 5. 7	1 9. 1

d d I G i n c r e a s e u a n	c e
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe

All guidance elements are excluding BUWOG, except for FFO 1, FFO 1 per share and dividend.

For H1 results on Aug. 31 we will present an update on all guidance elements including BUWOG.

Based on an apples-to-apples definition, we estimate BUWOG's FFO 1 contribution for 2018 to be €30m.

	ls 2 0 1 7 Ac tu a	8 i da 2 0 1 Gu nc e	8 i da 2 0 1 Gu nc
		itia l ( 20 17 ) In No v.	e da ( 20 18 ) Up te Ma y
Or h ( ) ic t g t g an re n ro w eo p	2 % 4.	6 % 8 % 4. 4. -	6 % 8 % 4. 4. -
( ) Va ca nc eo p y	2. 5 %	2. 5 % <	2. 5 % <
l ( €m ) Re ta In n co me	6 6 9 1, 7.	6 6 0 6 8 0 1, 1, -	6 0 6 9 0 1, 7 1, -
F F O 1 ( €m )	9 2 0. 8	9 6 0 9 8 0 -	1, 0 3 0 1, 0 5 0 – ( 1, 00 0 – 1, 02 0 V NA d-a lon e) st an
O ( € / ha ) F F 1 s re eo p ,	9 0 1.	2 9 8 2. 0 2 1. -	2 2. 2 2. 6 1 1 - 2 V ( d-a lon e) 2.0 6 – 2.1 0 NA st an
Ma in ( €m ) te na nc e	3 4 6. 2	~3 6 0	~3 6 0
de & ( ) Mo iza t ion In tm ts €m rn ve s en	8. 7 7 6	0 0 0 ~1 ,	0 0 0 ~1 ,
Pr iva iza ion ( be f u i ) t t ts nu m r o n	2, 6 0 8	~2 3 0 0 ,	~2 3 0 0 ,
( ) F V te Pr iva t iza t ion s p- up	3 2. % 7	~3 0 %	~3 0 %
No ( be f u i ) ts n- co re nu m r o n	1 1, 7 8 0	is ic tu t op p or n	is ic tu t op p or n
( l l fo l ) F V te Se Po t io s p- up r	9 % 7.	0 % >	~5 %
D iv i de d / ha n s re	1 € 1. 3 2	f ~7 0 % F F O 1 o	f ~7 0 % F F O 1 o

Proposed to the 2018 Annual General Meeting. ² Based on current number of 485.1m shares outstanding.

FFO 1 and Other Sources of Earnings

1. Q1 2018 results 3. Housekeeping

FFO 1 is Vonovia's lead earnings KPI and includes the contribution of the Rental and Value-add Segments.

1. Wrap-up 5. Appendix

2. FFO 1 is the basis for the dividend level.

3. This approach overshadows the fact that Vonovia's business model has additional sources of earnings that contribute to the overall cash flow of the company.

The broader range of earnings contributions is a competitive advantage over the peer group.

plus Adj. EBITDA Other

• Vonovia'sAnnual General Meeting 2018 will take place in Bochum on May 9.
• Following the high acceptance levels last year, Vonovia's Supervisory Board resolved on May 2 to offer to shareholders the choice between a scrip dividend and a cash dividend at the upcoming AGM.
• Upon approval of the allocation of the 2017 net profit by the AGM, the timeline¹ for the cash and scrip dividend would be as follows:
• May 11: Publication of rights issue, dividend announcement and start of subscription period
• May 25: Determination of reference price / subscription price
• May 28: End of subscription period
• June 7: Payment date for cash dividend
• June 12: Capital increase related to the scrip dividend
• June 14: Settlement date for scrip dividend

Tender Offer for Victoria Park

f f O e r	d h d f f f O M 3 2 0 1 8 V i V i i t t n a o n o a a n n o n c e a c a s e n e o e o c o a y v u r r r r , , k, l d d h d l P i S i i i t t a a s e e s e s e n a c o m p a n r w r y.
F i i n a n c n g	f f f f f V i 's l i l V i i P k t t t o n o o e e e n e n e p e e o o o p p o v a r r c s a r r s v a u c r a a r a r x b € 1 7 n h f h b h I i i i € 1 i t t t t t t t t t t n e c o n e o s a n s a c o n e e p e c o a s e p o n n e x r w x r u , k d d d k d i i i i i i t t t t t e q u y m a r e s, e p e n n g o n m n g a n m a r e c o n o n s.
h F t e u r r f i i t n o m a o n r	d h l f A i i i i t t t t t t t s e p a a e n e s o p e s e n a o n a n o e e e a n n o m a o n a e r v r r r r v r r b l h d h d d d b h / / k d i i i i i t t t t t t t p s e o n e e c a e a n s a c o n e s e p e n o n o a e u r w : v v -

d O U B U W t p e o n a	G I i t t n e g o n r a
1. Hig hlig hts	2. Q 1 2 01 8 r lts 3. Ho kee esu use p	ing 4. Wr ap -up	5. Ap nd ix pe
O h i w n e r s p	f l A A i 3 0 V i s o p r o n o v a o w n e , h l d h 3 8 % T i i t 7 t s n c u e s e e n f f i 9 9 8 % h t o n e o n o o e c v r s d h k f l l i i t t a c q e n e m a e o o u r r	d f l l d 7 7 4 % i t t o a o u s a n n d d h f i t i t t e r e n e r s a c c e p a n i b l b d d t t o n e e o n e n e e c v r s r h d f h f i i t t t n g e e n o e s a w r	h B U W O G g s a r e s. d i c e p e r o , d d h n e a s a r s d i t c c e p a n c e p e o r
S d e o n c t a c c e p a n c e d d i p e o n e a r u r w y	d d M t t a n a o s e c o n a c c e p a n r y	d d i J 1 8 c e p e o e n s o n n e r u
N t t e x s e p s	b b l V i t t t o n o v a e x p e c s o e a e f h b i h k t t t t e a s s o e c u r r e n s a k l l A i T L t s a n a e o e a a o u r v r w w h l d f h h 9 0 % t o n e o s o e s a w r	l h i i t t o r e a z e e c o m m u n c a e f i t s o a s q e e e o n c a s r u z u e s o m o e r r r	d i e s y n e r g e s o n h j i t t e e m a o r y
I i t t n e g o n r a	O i l i i t t t t t p e r a o n a n e g r a o n s a r f 's B U W O G G i t o e m a n o p e a r r l d b h d f h i t t t c o m p e e e e n o y	f d h d h t t M e a e e n o a r c a n b d i i t t n g s n e s s s e p e c e u x s e a y r.	d h i i t t t e n e g r a o n b f l l o e u y

Operations remain on strong trajectory – dynamic start into 2018.

Increased guidance reflects strong business fundamentals.

BUWOG integration is fully on track and will deliver first results already in 2018.

Within the parameters of its communicated strategy, Vonovia is continuing to seek opportunities for sustainable shareholder value creation in Germany and in selected European metropolitan areas.

IR Contact & Financial Calendar

1. Q1 2018 results 3. Housekeeping

Rene HoffmannHead of Investor RelationsVonovia SEPhilippstraße ³ 44803 BochumGermany

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

C t t o n a c		C F i i l l d 2 0 1 8 n a n c a a e n a r
	3 Ma y	im l 3 2 0 8 In te ts M 1 r re su
	Ma 9 y	l l in in hu An Ge Me t Bo nu a ne ra e g c m
	Ma 1 4 & 1 5 y	é é én ér ds ho do ( le ) Ro Lo So i t G a w, n n c a
	Ma 1 7 y	fu Ro ds ho Fr k ( Ke ler C he ) t a an p re w, r uv ux
	Ma 2 3 y	1 Be be Co fe Ta Ne Yo k to re n rg n re nc e, rry wn w r
	Ma 2 4 & 2 5 y	1 Ro ds ho To d C h ica ( Ex ) to a w, ro n a n g o an e
	2 9 Ma y	1 ler C he Ge & Ke Au tr ian Pr ty Da Pa is p uv re ux rm an s op er y, r
	Ma 3 0 y	da Ke Eu Se ina Am te m p en ro p ea n m r, s r m
	Ju 4- 5 ne	i l ke l in Ca ta Ma ts Da Be p r y, r
	Ju 6 n	fe D B Ac Co Be l in ce ss n re nc e, r
	Ju 7 n	1 G S Eu F ina ia l Co fe Fr k fu t ro p ea n nc n re nc e, an r
	Ju 1 4 n	C O Co fe is Ex Eu E Pa an e ro p ea n n re nc e, r
	3 Au 1 g	im l 6 2 0 8 In te ts M 1 r re su
	Se 2 4 p	/ be fe h G S Be Ge Co te Co Mu ic re n rg rm an rp or a n re nc e, n
	Se 2 6 p	de fe h 1 Ba In Co Mu ic tm t a ve s en n re nc e, n r
	Se 2 6 p	Bo f A M L G lo ba l Re l Es Co fe Ne Yo k ta te a n re nc e, w r
	Se 2 7 & 2 8 p	Ro ds ho No h Am ica t a w r er
	6 De c	im l 9 2 0 8 In te ts M 1 r re su

d A i p p e n x
1. Hig	hlig hts	2. Q 1 2 01 8 r lts esu	3. kee ing Ho use p	4. Wr ap -up	nd ix 5. Ap pe
G S P A E	C O N T E N T
2 2- 3 1	l Q 1 t r e s u	d d l d i i t t a o n a a a
		s –
3 2- 3 7	S t t a e g r y,	f d i k t a n e- e a a c e c o v y r r r r	d d h i i l K P I t a n s o c a s r
3 8- 4 2	F i i n a n c n g
3- 4 4 5	f l P t i M o r o o	t a n a g e m e n
6 4	& M e r g e r s	A i i t i c q u s o n s
4 7- 4 8	l l h F t o o w e	l h i t g
4 9- 5 1	V i o n o v a s	h a r e s
5 2- 5 5	b S i i t s a n a u	l i t y
5 6- 6 0	R i d i t e s e n a	l k d t t m a e a a r
6 1	l N o c o r r e a	b G t i t o n e w e e n e r m a n r e	d l l d d i t i i i t s e n a y e s a n n e r e	t t s r a e s
6 2	h l T r e e a y e	f i t r s o p e r c e p o n
6 3- 7 2	P i t c u r e s
7 3	l D i i s c a m e r

l C i V t o n s e r v a v e a	l i L t u a o n e v e s
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. 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. Source for market costs: Arbeitsgemeinschaft für zeitgemäßes Bauen e.V.

*Actual number of residential sqm excluding BUWOG

l f R i i i I F R S P i F F O t t t e c o n c a o n r o o
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr	ap -up	5. Ap nd ix pe
(u nle ind ted he ) €m ica ot ise ss rw			Q 1 2 01 8	Q 1 2 01 7	lta De
IF RS PR OF IT FO R T HE PE RI OD			12 9.2	130 .7	1% -1.
1 l re sul Fin cia t an			83 .0	83 .0	-
Inc e t om axe s			78 .2	83 .0	-5. 8%
nd De cia tio ort iza tio pre n a am n			9.0	7.1	26 .8%
e f fa alu dju Ne t in ir v stm com rom e a	of ts inv est nt rtie en me pro pe s		-	-	-
= E BI TD A I FR S			29 9.4	30 3.8	4% -1.
No rrin ite n-r ecu g ms			27 .9	13 .9	>1 00 %
fro To tal rio d a dju stm ts ets pe en m ass	ld f he sal or e		4.1	1.5	>1 00 %
l in e f Fin cia in stm ts an com rom ve en	the al in o est ate ies r re co mp an		-	-	-
= A DJ US TE D E BI TD A			33 1.4	31 9.2	3.8 %
Ad jus ted EB ITD A S ale s			-15 .7	-19 .1	.8% -17
= A DJ US TE D E BI TD A O PE RA TI	ON S		31 5.7	30 0.1	5.2 %
2 FFO in ter est ex pe nse			-67 .7	-76 .8	-11 .8%
Cu FO nt inc e t s F 1 rre om axe			-4. 4	-5. 1	-13 .7%
= F FO 1			24 3.6	21 8.2	11 .6%
Ca ita lize d m ain ten p an ce			-21 .6	-13 .6	58 .8%
= A FF O			22 2.0	20 4.6	8.5 %
Cu inc s S ale nt e t rre om axe s			-7. 4	-11 .0	-32 .7%
FF O2 ( FF O1 in cl. Ad jus ted EB IT	DA Sa les / Cu inc Sa les nt e t rre om ax es	)	25 1.9	22 6.3	.3% 11
FFO sha in € (eo NO SH ) 1 p er re p			0.5 0	0.4 7	7.9 %

AF FO ha in € (eo NO SH ) pe r s re p	0.4 6	0.4 4	4.9 %
Nu mb of sha (m illio n) er res eo p	48 5.1	46 8.8	3.5 %

Excluding income from investments. ² Including financial income from investments in other real estate companies.

S & I F R P L
hlig hts 2. Q 1 2 01 8 r lts 1. Hig esu	3. kee Ho ing use p	4. Wr ap	-up	nd 5. Ap ix pe
les d d o he €m in ica ise	1	2 0 1 8	1 2 0	De l
( ) te t un s rw	Q		Q 17	ta
fro let Inc ert t ing om e m p rop y	5	8 9. 3	5 8 6. 7	0. % 4
Ot he r in fro ert t co me m p rop y ma na g em en		0. 1 7	0. 0 1	7. 0 %
fro In ty t co me m p ro p er m an ag em en	6	0 0. 0	5 9 6. 7	0. 6 %
fro d l o f p Inc isp ert ies om e m os a rop		11 4. 0	4 9 2. 2	-7 6. 8 %
Ca ing f p ies l d nt ert am ou o rop so rry	-1	0 8 5.	6. -4 7 7	8 % -7 7.
f a for Re lua ion he l d le t ts va o sse sa		8. 7	9.4	-7 .4 %
Pr f it d isp l o f p ies t o on os a ro p er		6. 9 1	24 9	-3 2. 1 %
fro fa f Ne t inc ir lue d j tm ts inv tm t p t ies om e m va a us en o es en ro p er		---	---	---
Ca ita lize d int l e p er na xp en se s	1	0 5. 6	8 5. 4	2 3. 7 %
f m ls Co st ate ria o	-2	8 0. 2	-2 74 3	2. 2 %
Pe l e rso nn e xp en se s	-1	11 8	-1 0 2. 0	9. 6 %
d a De iat ion rt iza t ion p rec an mo		-9 0	-7 .1	2 6. 8 %
Ot he ing in t r o p era co me		24 3	2 6. 5	-8 3 %
Ot he ing t r o p era ex p en se s		-6 3. 0	-5 9.7	5. 5 %
l in Fin ia an c co me		9. 6	7. 3	3 % 1.5
Fin ia l e an c xp en se s		-8 0 5.	-8 0 4.	1. 2 %
ing be fo Ea ta rn s re xe s	2	0 7.4	21 3. 7	-2 9 %
Inc e t om ax es		-7 8. 2	-8 3. 0	8 % -5
f fo Pr it he io d r t o p er	1	2 9. 2	1 3 0. 7	-1 .1 %
At i bu b le tr ta to :
Vo via 's ha ho l de no s re rs		11 6. 4	11 6. 6	-0 2 %
's hy br d c l in Vo via i ita sto no ap ve rs		7.5	7.4	% 1.4
No l lin int tro sts n-c on g ere		6 5.	6. 7	-1 6. 4 %
Ea ing ha ( ba ic d d i lut d ) in € rn s p er s re s an e		0. 24	0. 25	-4 0 %

l h ( / l ) I F R S B S 1 2 T A t t t a a n c e e e o a s s e s –
1. Hig hlig hts 2. Q 1 2 01 8 r lts 3. Ho kee esu use	ing 4. Wr p ap -up	5. Ap	nd ix pe
€m ( les in d ica d o he ise ) te t un s rw	Ma 3 1, 2 0 1 8 r.	De 3 1, 2 0 17 c.	De lta
As ts se
Int i b le ts an g as se	3, 47 9. 9	2, 6 3 7. 1	3 2. 0 %
lan d e Pro ert t a ip nt p y, p n q u me	2 0 9.7	17 7. 6	1 8. 1 %
Inv ies tm t p ert es en rop	3 8 6 0. 8 7,	3 3, 8 2. 8 1	14 .1 %
Fin ia l a ts an c sse	7 3 3. 9	6 9 8. 0	5. 1 %
he Ot ts r a sse	21 9	1 3. 8	5 8. 7 %
De fer d t ts re ax as se	1 0. 3	1 0. 3
To l n ta nt et on -c ur re a ss s	4 2, 3 1 6. 5	3 6, 71 9. 6	2 % 15
rie Inv to en s	6. 5	6. 2	8 4. %
de b les Tr iva a re ce	3 77 8	2 3 4. 9	6 0. 8 %
Fin ia l a ts an c sse	1 2.7	0. 5	>1 0 0 %
he Ot ts r a sse	21 0. 6	9 8. 4	>1 0 0 %
Inc iva b les e t om ax re ce	41 9	47 9	-1 2.5 %
Ca h a d c h e len iva ts s n as q u	8 2 9. 3	2 6 6. 2	>1 0 0 %
l E Re sta te Inv to rie a en s	3 0 0. 2	0	>1 0 0 %
As he l d for le ts se sa	8 0. 7	14 2. 6	3. % -4 4
l c To ta nt et ur re a ss s	1, 8 5 9. 7	7 9 6. 7	>1 0 0 %
l a To ta et ss s	44 17 6. 2 ,	3 7, 5 1 6. 3	17 8 %

Q1 2018 Earnings Call

1. Hig hlig hts 2. Q 1 2 01 8 r lts 3. Ho kee ing 4. Wr 5. Ap nd ix esu use p ap -up pe (u nle ind ted he ) €m ica ot ise Ma r. 3 1, 20 18 De 31 20 17 De ss c. rw , Eq uit nd lia bil itie y a s bsc rib ed l Su ita cap 48 5.1 48 5.1 0.0 Ca ita l re p ser ve s 96 6.3 96 6.3 0.0 5, 5, tai ned rni Re ea ng s 8, 58 7.9 8, 47 1.6 +1 he Ot r re ser ve s 18 2.3 15 7.8 +1 5.5 To tal uit ttr ibu tab le to Vo via 's sh ho lde eq y a no are rs 15 22 1.6 15 08 0.8 0.9 , , ibu tab le t o h bri d c l in Eq uit ttr ita sto y a y ap ve rs 1, 01 1.5 1, 00 1.6 +1 To tal uit ttr ibu tab le to Vo via 's sh ho lde d h bri d c ita l in sto eq y a no are rs an ap ve rs y 16 23 3.1 16 08 2.4 +0 , , No llin int tro sts n-c on g ere 63 7 60 8.8 +4 tal uit To eq y 16 87 0.1 16 69 1.2 +1 , , Pro vis ion s 61 2.4 60 7.2 0.9 Tra de ab les pay 0.8 2.4 -66 n d fin l lia bili No eri vat ive cia tie an s 17 57 1 12 45 9.4 +4 1.0 , , De riv ati ve s 59 .2 8.7 00 >1 Lia bili tie s f fin lea rom an ce ses 94 .6 94 .7 -0. bili olli Lia tie s t ntr int sts o n on -co ng ere 31 .5 24 .9 +2 6.5 s f fin Fin cia l lia bili tie te nt cin an rom na an g 35 .3 0 +3 5.3 Ot he r li ab iliti es 49 .9 65 .3 -23 fer red x l iab iliti De ta es 5, 68 9.6 5, 32 2.6 +6 To tal t l iab ilit ies no n-c ren ur 24 4.3 18 58 5.2 29 14 , , Pro vis ion s 40 8.8 37 6.5 8.6 de ab les Tra pay 176 .1 130 .7 34 No n d eri ive fin cia l lia bili tie vat an s 31 6 60 1, 1, 1.1 -17 De riv ati ve s 86 5.6 4.4 >1 00 bili s f fin lea Lia tie rom an ce ses 4.6 2.2 4.7 Lia bili tie olli int s t ntr sts o n on -co ng ere 7.0 9.0 -22 l liab iliti fro fin Fin cia ten t cin an es m an an g 116 .9 7.7 >1 00 he r li ab iliti Ot es 26 6.7 10 5.9 >1 00 To tal lia bil itie nt cu rre s 3, 16 1.8 2, 23 9.9 41 .2% tal lia bil itie To s 27 30 6.1 20 82 5.1 31 , ,	l h ( / l d b I F R S B S 2 2 T E i L i i t t t a a n c e e e o a q u y a n a –	l ) i i t e s
			lta
			%
			%
			.4%
			%
			%
			.0%
			.9%
			.6%
			.1%
			%
			.7%
			%
			%
			1%
			%
			%
			.6%
			.9%
			.9%
			%
			.7%
			.8%
			%
			%
			.2%
			%
			%
			.1%
44 17 6.2 37 51 6.3 17 , ,	To tal uit nd lia bil itie eq y a s		.8%

Q1 2018 Earnings Call

h l I F R S C F a s o w
Hig hlig hts 2. Q 1 2 01 8 r lts 3. 1. Ho esu use		kee ing p	4. Wr ap -up	5.	nd ix Ap pe
( les d d he €m in ica te t un s o rw	) ise		8 Q 1 2 0 1	Q 1 2 0 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			2 6 2. 7	2 4 1. 9	8. 6 % +
f fr C h lo in in t a s w o m ve s g	iv i ie t t a c s		-2 5 0 0. 3 ,	-7 7 3. 2	% 1 0 0 >
h f lo fr f C in in a s w o m a nc g	t iv i t ie a c s		8 2, 0 0. 7	-1 6	1 0 0 % >
h in h N t e c a ng e s c a s a n	d h iv l t c a s e q u a e n s		5 6 3. 1	-5 3 2. 9	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	1, 5 4 0. 8	-8 2. % 7
h d h iv l h d f h i d C t t t t a s a n c a s e q u a e n s a e e n o e p e r o			8 2 9. 3	0 0 9 1, 7.	-1 7. 7 %

f I P M t t n c o m e r o m r o p e r y a n a g e m e n
1. Hig hlig hts 2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe
€ m ( les in d ica d o he ise ) te t un s rw	Q 1 2 0 1 8	Q 1 2 0 1 7	l D t e a
1 Re l in t n a c o m e	4 1 9. 3	4 1 8. 3	0. 2 % +
An i l la t c ry c o s	1 7 0. 0	1 6 8. 4	1. 0 % +
fr in In Pr ty L t t c o m e o m o p e e g r	5 8 9. 3	5 8 6. 7	0. 4 % +
O he fr t in ty t c o m e o m p ro p er m a na g e m e n r	0. 1 7	0. 0 1	7. 0 % +
fr In ty t c o m e o m p r o p e r m a n a g e m e n	6 0 0. 0	9 6. 5 7	0. 6 % +

Rental income under IFRS definition. Includes €1.0m of rental income attributable to Value-add Business.

f l C M i t t o s o a e a s r
1. Hig hlig hts 2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe
€ m ( les d d o he ) in ica te t ise un s rw	Q 1 2 0 1 8	Q 1 2 0 1 7	D l t e a
Ex fo i l la t p e ns e s r a nc ry c o s s	6. 9 1 5	8. 0 1 5	-0 % 7
fo Ex in t p e ns e s r m a e na nc e	1 0 1. 5	9 2. 5	9. 7 %
O he f p ha d d d t t ic o o e g o o n er e r c s ur c s s a s v s	2 1. 8	2 3. 8	-8 4 %
f T l c i ls t t t o a o s o m a e r a	2 8 0. 2	2 3 7 4.	2. 2 %

All Strategic Markets Show Upward Potential

1. Hig hlig hts		2. Q 1 2 01	8 r lts esu		3. Ho	kee ing use p		4.	Wr ap -up		5. Ap nd pe	ix
	Fai r va	lue						In- pla t ce ren
Re ion l Ma ke t g a r	(€m )	(€/ ) sqm	Res ide l uni ntia ts	Liv ing a ('00 are 0 s ) qm	Vac anc y (% )	al (p.a Tot ., € m)	Res l (p.a ide ntia ., € m) (€/	Res ide ntia l /m h) ont sqm	Org ani nt gro c re wth (% )	le (in- Mu ltip pla t) ce ren	nt gro Ave rag e re wth for st CB eca (5 y rs) (% RE )	Ave nt rag e re wth (% ) fr gro om Opt imi ze Apa rtm ent s
Ber lin	5,9 38. 8	2,0 46	43, 997	2,8 04	1.9	223	211	6.4 0	3.7	26. 6	4.3	49. 1
Rhi (F kfu Ma in A rt, ne rea ran Dar tad t, W ies bad en) ms	3,5 34. 3	1,9 53	27, 900	1,7 80	1.5	169	163	7.7 6	3.8	21. 0	3.5	41. 9
Rhi nel and (Co log Dü ldo rf, ne, sse Bon n)	3,2 50. 3	1,5 87	29, 727	1,9 90	2.8	167	159	6.8 7	3.4	19. 4	3.1	27. 5
Sou the rn R uhr Ar (Do und rtm ea , chu m) Ess Bo en,	2,9 11. 5	1,0 62	881 43,	82 2,6	3.3	184	178	5.7 1	4.5	8 15.	2.9	8 30.
Dre sde n	2,8 92. 2	1,2 37	38, 568	2,1 93	2.7	160	149	5.8 4	5.8	18. 1	3.7	34. 5
bur Ham g	2,2 22. 0	1,7 13	19, 823	1,2 64	1.6	105	101	6.7 5	4.7	21. 1	3.3	42. 9
Mu nic h	1,8 19. 3	2,7 74	9,6 95	638	1.2	63	59	7.8 0	3.3	29. 0	4.8	52. 1
Stu ttg art	1,7 42. 3	1,8 96	14, 128	889	1.7	84	80	7.5 9	2.8	20. 9	3.1	39. 7
l Kie	1,7 40. 7	1,2 39	23, 391	1,3 47	2.1	100	94	5.9 4	5.3	17. 5	3.2	39. 9
Nor the Ruh r Ar (Du isb rn ea urg , lse nki rch en) Ge	1,4 25. 8	862	26, 449	1,6 34	3.6	106	103	5.4 4	4.2	13. 4	2.4	25. 0
Han ove r	1,4 23. 9	1,3 75	16, 129	1,0 16	2.7	77	74	6.2 5	5.3	18. 4	2.9	40. 2
Bre me n	918 .9	1,2 37	11, 905	722	3.2	48	46	5.4 7	3.1	19. 1	3.6	29. 4
Lei pzig	765 .1	1,2 33	9,1 68	588	4.5	42	39	5.7 9	3.4	18. 4	2.9	26. 0
hal ia (Mü Osn abr ück ) We stp nst er,	673 .3	1,0 85	9,4 71	613	2.4	42	41	5.7 2	4.9	16. 0	3.0	37. 2
ibu Fre rg	546 .4	1,9 55	4,0 46	277	1.4	24	23	7.0 7	4.0	22. 9	4.1	44. 4
Oth er S ic L tion tra teg oca s al S ic L tio Tot tra teg oca ns	2,4 93. 1	1,2 94	29, 857	1,8 78	2.9	142	136	6.2 4	5.1	17. 5	3.3	39. 5
Ge rm any	34, 298 .0	1,4 91	35 8,1 35	22, 31 5	2.5	1,7 36	1,6 56	6.3 5	4.2	19. 8	3.4	36 .4
Aus tria e: * lue of t he d lope d la nd e Not Fai r va eve	2,4 71. 4 xclu ding € 1,07	1,2 92 2.8 mill of w hich ion,	23, 379 mill € 391 .4 ion	46 1,7 for und lope d la eve	4.5 nd a nd i nhe rita	106 ble buil ding rig	88 hts nted , € 203 gra	0 4.4 mill for .9 ion ts u asse	- nde nstr ucti r co on,	23. 4 mill for dev € 404 .6 ion	n/a elop d € t an 72.9 men	n/a mill for othe ion r.

	1. hts	2. 1 2	01 8 r	3. Ho kee		4. Wr	5. nd ix
	Hig hlig	Q	lts esu	ing use p		ap -up	Ap pe
			Re p u	io & Cu ta t to n s m er	fa Sa is io t t c n
l a n o i it d a r T	Pr Ma ty 1 op er	t na g em en	Sy te t s ma fo p er rm an hr h t ou g h de H ig g du l in tr ia s iza t or g an	f o ic t im iza t ion op o p er a d bu ine ce a n co re s ss p lev l f fe ing ing ts er ag sc a e c f s da d ta iza t ion re e o n r a hr ho he iza t ion t t t ou g u e ion	t ing du t iv i ty ro c d n t ire n	5	Me & rg er s Ac is i t io q ns u Co inu iew f o t n ou s re v o n- d f f-m ke t an o ar i ies lev tu t to op p or n er
	F in 2 an c	in g	En su re w f le i i t p ro w de g ra c re t im es d Fa t a s n i l m ta ca p	l l- ba lan d f ina ing e ce nc m h low f ina ing ts nc c os , d d de i t r t ing te a a n a q ua fe d t te to un re ac ce ss e q ke l l im ts t a t ar a es	ix d i tu ty an ma r inv tm t es en l d l l iq i i ty t a u a i d de b ty t u a n		f s le d ies ec on om o ca an ly l lar tra te ic i 1- 4 ap p s g p s fo l to ing t io a g ro w p or l l a is i ion A t t m t cq u s m us ee he t tr ing t a is i t ion s en cq u i te ia cr r
	Po fo l io Ma t 3 r na	t g em en	Po fo l io t r is i ion t ac q u d isp ls os a ke ts ma r	im iza ion by f t t ta op w ay o d / s a n no n- co re no n- s to to e ns ur e ex p os ur e s	ica l t c ic tra te g loc l tro ng a	6	Eu Ac iv i ie t t ro p ea n s
			Pr ive t o- ac inv tm es en ig h t m r ar	de lop f he t o t ve me n p f fe he ig h ts to t t p o r r ro ke d lon ts te an on a g- rm	fo l io hr h t t or ou g du in he ts t c ba is s		Bu i l d ing is ing t o n ex Ge ion t rm an o p er a s
			Ex ion p an s	f c bu ine to o or e s ss e x	d he lue te t n v a		Me d h as e ap p ro ac ur
e v ti a v	lu d d 4 Va e- a	Bu in s es s	ha in by c o du ts p ro c to cu s me	f fe ing d d i ion l s t r a a er v ha d ire ly l in ke d t t a t re c d / he ies t t rs an or p ro p er	ice d s a n to o ur		l len fo Ex t p tn ce ar er s r ion t co op er a
o n n I		In ing so ur c p ro ce ss m	f s ice to o er v s e ns ur e d t a t c an ag em en n co s	im ma x um l tro on		kn ho Le ing ve ra g ow w, d be ien t ex p er ce a n s t ice p ra c s
		C	S i t t o e a e g e r r	s		O p	i i S i t t t t p o n s c a e g e s r u r

Proven 4+1 Strategy is Evolving into 4+2 Strategy

Q1 2018 Earnings Call

Q1 2018 Earnings Call

…Leading to Sustainable FFO 1 Growth and an Attractive Dividend Policy

Rental income + EBITDA Value-add Business and Other; excluding sales effects. ² Proposed to the Annual General Meeting 2018.

l ( / ) H i i K F i 1 2 t s o r c a e y g u r e s
1. Hig hlig hts 2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4.	Wr ap -up	5. Ap pe	nd ix
Fin cia l K Fig s ( €m les ed oth ise ) tat an ey ure un s s erw ,	2 0 17	2 0 1 6	2 0 15	2 0 14	2 0 1 3
l in Re nta co me	1, 6 6 7. 9	1, 5 3 8. 1	1, 41 4. 6	7 8 9. 3	7 2 8. 0
A d j d EB IT DA Op ion te t us era s	1, 2 24 2	1, 0 94 0	95 7. 6	5 0 3. 4	44 2.4
d d l A j te EB IT DA R ta us en	1, 15 0. 0	1, 0 4 6. 2	9 24 .4	4 8 2. 6	4 3 3. 0
d d lue d d A j te EB IT DA V Bu ine us a -a s ss	1 0 2. 1	5 7. 0	3 7. 6	2 3. 6	1 0. 5
A d j d EB IT DA Ot he te us r	-2 9 7.	-9 2	-4 .4	-2 8	-1 .1
fro d l o f p Inc isp ert ies om e m os a rop	1, 2 0 6. 4	1, 2 27 9	7 2 6. 0	2 8 7. 3	3 5 3. 5
A d j d EB IT DA S les te us a	0. 8 11	9 2, 5	71 .1	0. 5 1	27 .7
d d A j te EB IT DA us	1, 3 3 5. 0	1, 1 8 6. 5	1, 0 2 8. 7	5 5 3. 5	47 0. 1
EB IT DA IF RS	27 8 1, 1.	0 8 3. 1, 7	8 3 8. 4	0 0. 3 5	3 0 4 1.
FF O 1	9 2 0. 8	7 6 0. 8	6 0 8. 0	2 8 6. 6	2 2 3. 5
he f a i bu b le Vo via ha ho l de t ttr ta to reo no s re rs	8 6 6. 2	3. 71 4	5 5 5. 5	27 5. 1	21 8. 4
he f a bu b le hy br d c l in t ttr i ta to Vo via i ita sto reo no ap ve rs	4 0. 0	4 0. 0	3 3. 0	-	-
he f a i bu b le No l lin int t ttr ta to tro sts reo n-c on g ere	6 14	7.4	9.5 1	11 .5	5. 1
FF O 2	1, 0 1 2.4	8 2 3. 8	6 6 2. 1	3 3 6. 7	25 1. 2
AF F O	8 3 5. 1	6 8 9. 2	2 0. 5 5	25 8. 3	2 0 3. 5
ha FF O 1 p in € er s re	1. 9 0	1. 6 3	1. 3 0	1. 0 0	0. 95
fro fa f in Inc ir v lue d j ies tm ts stm t p ert om e m a a us en o ve en rop	3, 4 3 4. 1	3, 2 3 6. 1	1, 3 2 3. 5	3 71 .1	5 5 3. 7
EB T	4, 0 0 7.4	3, 8 5 9. 8	1, 7 3 4. 5	5 8 9. 1	6 8 9. 6
fit for Pro he io d t p er	2, 5 6 6. 9	2, 5 1 2. 9	9 94 .7	4 0 9.7	4 8 4. 2
Ca h f low fro t ing t ivi t ies m op era s ac	94 6. 0	8 2 8. 9	6 8 9. 8	45 3. 2	25 9. 6
f fro Ca h low inv ing ivi ies t t t s m es ac	-1 3 5 0. 1 ,	41 6. 4	-3 2 3 9. 8 ,	-1 17 7. 9 ,	17 1. 3
Ca h f low fro fin ing t ivi t ies s m an ac c	-8 7 0. 5	-2 8 1 2.4 ,	4, 0 9 3. 1	1, 74 1.7	-3 5 3. 2
Ma int d m de iza ion t en an ce a n o rn	1, 1 24 8	7 9 2.4	6 8 6. 3	3 45 .5	2 2 8. 4
he f for d c lize d m t int ita int reo m a en an ce ex p en se s a n ap a en an ce	3 4 6. 2	3 2 0. 1	3 3 0. 7	17 3. 8	15 7. 6
f for he de iza ion t t reo m o rn	77 8. 6	47 2. 3	3 5 5. 6	17 1.7	7 0. 8

The key figures of prior years have been adjusted to match the definitions of the 2017 fiscal year. The key figures per share are based on the shares carrying dividend rights on the corresponding reporting date. Values for 2013 and 2014 are TERP-adjusted.

l ( / ) H i i K F i 2 2 t s o c a e g e s r y u r
1. Hig hlig hts 2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4.	Wr ap -up	5. Ap pe	nd ix
Ke Ba lan Sh eet Fig s ( €m les tat ed oth ise ) y ce ure un s s erw ,	3 De 1, c. 2 0 17	3 De 1, c. 2 0 1 6	3 De 1, c. 2 0 15	3 De 1, c 2 0 14	3 De 1, c 2 0 1 3
lue f r l e fo lio Fa ir v sta te ort a o ea p	3 3, 4 3 6. 3	27 11 5. 6 ,	24 15 7.7 ,	1 2, 75 9. 1	1 0, 3 2 6. 7
d d A j te NA V us	1 8, 6 71 .1	14 3 2 8. 2 ,	11 27 3. 5 ,	6, 47 2. 0	5, 1 2 3. 4
d d ha A j te NA V in € us p er s re	3 8. 4 9	3 0. 75	24 .1 9	2 2. 6 7	21 .74
LT V ( % )	3 9. 8	6 41	6. 9 4	9. 3 4	8. 4 1
ina nci al Fig No n-F Ke y ure s	2 0 17	2 0 1 6	2 0 15	2 0 14	2 0 1 3
be f u nit d Nu m r o s m an ag e	4 0 9, 27 5	3 9 2, 3 5 0	3 97 7 9 9 ,	2 3 2, 24 6	2 0 1, 7 3 7
he f o t art nts reo wn ap me	3 4 6, 6 44	3 3 3, 3 8 1	3 5 7, 11 7	2 0 3, 0 2 8	17 5, 25 8
f a he d by he t art nts ot reo p me ow ne rs	6 2, 6 3 1	5 8, 9 6 9	4 0, 6 8 2	2 9, 21 8	2 6, 47 9
be f u nit bo ht Nu m r o s ug	8 24 47 ,	8 2, 15	8, 1 6 6 3 2	8 8 3 1, 5	0
be f u l d Nu nit m r o o s s	11 7 8 0 ,	2 6, 6 3 1	15 17 4 ,	4, 0 8 1	6, 7 2 0
he f P t riv at ize reo	2, 6 0 8	2, 7 0 1	2, 97 9	2, 2 3 8	2, 5 7 6
f S he l l t reo e	9, 17 2	2 3, 9 3 0	1 2, 1 95	1, 8 4 3	4, 14 4
Va ( in % ) rat ca nc y e	2.5	2.4	2.7	3. 4	3. 5
h ly lac € /sq Mo nt in- t in p e r en m	6. 27	6. 0 2	5. 75	5. 5 8	5. 4 0
h ly lac h ( % ) Mo nt in- t o ic t p e r en rg an g row	4. 2	3. 3	2. 9	2.5	1. 9
be f e loy Nu m r o mp ee s	8, 44 8	7, 4 3 7	6, 3 6 8	3, 8 5 0	2, 9 3 5
EP RA Ke Fig y ure s	2 0 17	2 0 1 6	2 0 15	2 0 14	2 0 1 3
EP RA N AV	21 2 8 6 4. ,	0 17 47 .1 ,	3, 9 8 8. 2 1	6, 8. 0 5 7	2 3. 5, 1 4
ha in € EP RA N AV p er s re	4 3, 8 8	3 6. 5 8	3 0. 0 2	2 3. 0 4	21 .74
EP RA N NN AV	14 6 5 7.5 ,	1 2, 0 3 4.4	9, 7 3 9. 8	-	-
EP RA Ea ing rn s	5 7 3. 1	45 0. 0	3 2 9. 2	-	-
EP RA N In it ia l Y ie l d in % et	3. 7	4. 1	4. 5	-	-
"to d- " N it ia l Y ie l d in % EP RA et In p p e up	3. 7	4. 1	4. 5	-	-
% EP RA V te in an ac cy ra	2. 3	2. 2	2.5	3. 0	3. 1
( l. d ) EP RA C t R at io inc ire ct sts in % os va ca nc y co	2 6. 2	2 8. 4	3 1. 9	-	-
( l. d ) EP RA C t R at io ire ct sts in % os ex c va ca nc y co	24 .7	27 0	3 0. 2	-	-

The key figures of prior years have been adjusted to match the definitions of the 2017 fiscal year. The key figures per share are based on the shares carrying dividend rights on the corresponding reporting date. Values for 2013 and 2014 are TERP-adjusted.

Source: Dealogic, Bloomberg, Broker research, Deutsche Bundesbank, Verband deutscher Pfandbriefbanken (VdP), FactSet as of April 4, 2018

Quarterly Mortgage Pfandbrief issuances for 2005-2012 based on equal distribution of annual issuances based on VdP data; 2013 -3Q2017 figures based on Deutsche Bundesbank

2Corporate bond issuance volume includes senior unsecured and hybrid bonds ≥ €50mm, issued in EUR in Western Europe

Excludes Mortgage Pfandbriefe in 1Q18 as data not yet available.

Currently used by Vonovia

i i i D T F e c s o n e e n r	i S a n c n g o c e s u r
hlig hts 1. Hig	2. Q 1 2 01 8 r lts esu	3. kee Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

C d K t o e n a n s a n v	P I s ( h 3 2 0 8 ) M 1, 1 a c r
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe

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

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

d / B R i t o n s a n g
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe

Corporate Investment grade rating

as of 201 8-03 -31
tin Ra g a ge nc y	tin Ra g	Ou tlo ok	da La st Up te
nd ard & r's Sta Poo	BB B+	ble Sta	19 c 2 01 De 7

Bond ratings

			as of 201 8-03	-31
Na me	Te r & Co no up on	IS IN	Am nt ou	ice Iss ue pr	Co up on	Fin al Ma tu rit y Da te	tin Ra g
nd 00 2 ( d) Bo EU R-B on	6 y 3.1 25 % ea rs	00 0A 52 DE 1H NW	€ 60 0m	99 .93 5%	3.1 25 %	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+
Bo nd 00 8 ( Hy bri d)	tua l 4 % pe rpe	XS 11 17 30 08 37	€ 1, 00 0m	100 .00 0%	4.0 00 %	tua l pe rpe	BB B
Bo nd 00 9A ( EM TN )	5 y 0.8 75 % ea rs	DE 00 0A 1ZY 97 1	€ 50 0m	99 .26 3%	0.8 75 %	30 Ma r 2 02 0	BB B+
Bo nd 00 9B ( EM TN )	10 1. 50 0% ye ars	DE 00 0A 1ZY 98 9	€ 50 0m	98 .45 5%	1.5 00 0%	31 Ma r 2 02 5	BB B+
nd ( ) Bo 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 ( ) Bo 01 0C EM TN	8 y 2.2 50 % ea rs	DE 00 0A 18V 146	€ 1, 00 0m	99 .08 5%	2.2 50 0%	15 De c 2 02 3	BB B+
Bo nd 01 1A ( EM TN )	6 y 0.8 75 % ea rs	DE 00 0A 18 2V S4	€ 50 0m	99 .53 0%	0.8 75 %	10 Jun 20 22	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 0%	10 Jun 20 26	BB B+
nd 01 2 ( ) Bo EM TN	2 y 3M OR +0 .38 0% EU RIB ea rs	00 0A 18 C9 DE 5W	€ 50 0m	100 .00 0%	0.1 40 % hed d ge	13 Se 20 18 p	BB B+
nd 3 ( ) Bo 01 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 1.7 50 % ye ars	DE 00 0A 19 B8 E2	€ 50 0m	99 .26 6%	1.7 50 %	25 Jan 20 27	BB B+
nd 01 5 ( ) Bo EM TN	8 y 25 % 1.1 ea rs	00 0A 19 NS 93 DE	€ 50 0m	99 .38 6%	25 % 1.1	08 Se 20 25 p	BB B+
nd 01 6 ( ) Bo EM TN	2 y 3M OR +0 .35 0% EU RIB ea rs	00 0A 19S DE E1 1	€ 50 0m	100 8% .44	3M OR +0 .35 0% EU RIB	20 v 2 01 9 No	BB B+
Bo nd 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+
Bo nd 01 7B ( EM TN )	10 1. 50 0% ye ars	DE 00 0A 19 UR 79	€ 50 0m	100 .80 5%	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 ( ) Bo 01 8C EM TN	12 2. 12 5% ye ars	DE 00 0A 19X 8B 2	€ 50 0m	98 .96 7%	2.1 25 %	22 Ma r 2 03 0	BB B+
nd ( ) Bo 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+

EUR-equivalent Coupon

Vonovia location

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

Q1 2018 Earnings Call

Illustration of Germany at Night

Illustration of Germany at Night

Note: Vonovia Strategic Portfolio

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

VNA share price performance since IPO vs. DAX and EPRA Europe Index

Q1 2018 Earnings Call

1. Wrap-up 5. Appendix

IPO in 2013.

Vonovia History

Final exit of private equity in 2014.

1. Q1 2018 results 3. Housekeeping

Reconciliation of Shares Outstanding

hlig hts 1. Hig	lts 2. Q 1 2 01 8 r esu	kee 3. Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

D t a e	N O S H ( i l l i ) m o n	C t o m m e n
b D 3 1, 2 0 1 6 e c e m e r	4 6 6 0
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 1 J 7 n e u ,	6 4 7 5	S i d i i d d p e n c r v
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

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

Sustainability at a Glance

1. Q1 2018 results 3. Housekeeping

Integrated element of Vonovia's business model

• With almost 400,000 apartments throughout Germany, Vonovia is the country's leading residential real estate company. This role in the housing landscape imposes on us a particular responsibility to actively shape the development of the housing industry.
• We aim to live up to the responsibility by pursuing a continuous dialogue with our stakeholder groups, and by considering social and ecological issues in our core activities. A key priority for us is to use our business model and our holistic approach to help resolve the most urgent challenges in the housing industry and make a positive contribution to social development.

Sustainability reporting at Vonovia

• Separate Sustainability Reporting Unit at Vonovia.
• Start Sustainability Reporting in 2015 with our first sustainability report published in 2016, based on GRI G4 guidelines.
• Publication of second Sustainability Report in 2017, based on the new GRI standards (published in October 2016), report is available at:http://investoren.vonovia.de/websites/vonovia/English/7033/sustainability.html
• Vonovia received the EPRA Silver Award for the 2016 Sustainability Report.

Sustainability Report for 2017 to be published in June 2018.

Sustainability Approach

1. Q1 2018 results 3. Housekeeping

"Our sustainability approach results directly from our business model, on the one hand, and also addresses developments that influence our business, or which we can influence, on the other."

Vonovia's Sustainability approach

• Vonovia implements extensive measures to maintain and develop its portfolio, in particular, measures to improve the energy efficiency of the stock. This allows us to make a significant contribution to protecting our climate. At the same time, wellinsulated apartments increase efficiency and simultaneously reduce ancillary expenses for our customers.

• A nice, stable environment is part of a good residential atmosphere. Therefore, we become involved beyond our buildings and set trends with cities, companies and city planners, as well as with associations, initiatives and, last but not least, with ourlocal customers for the sustainable development of entire neighborhoods.

Sustainability: Establishment within Vonovia

• • At the highest level, the CEOof Vonovia SE is responsible for sustainability.
• •The Audit Committee in particular handles sustainability on behalf of the Supervisory Board.
• • Vonovia established a new function, sustainability specialist, in 2017, in order to ensure that sustainability issues can be tackled in a more structured, cross-departmental manner and to expand our dialogue with stakeholders.

Sustainability Stakeholder Groups and Facts

Sustainability Key Topics

1. Q1 2018 results 3. Housekeeping

Materiality MatrixSustainable Corporate Governance: •Society and Customer Interests:•remuneration. institutions.Mieterstiftung e.V. renewable energies, entry into own electricity production via photovoltaic systems.Employees:• Employees from 60 different nations. •

• Long-term growth: Basis to Vonovia Business Model.
• Compliance and Anti-Corruption: Implemented Code of Conduct within Vonovia.
• Adherence to Labor, Social and Environmental Standards in the Supply Chain: Business Partner Code for subcontractors and suppliers: e.g. ruling out of illicit employment, payment of at least legal minimum wage.
• CSI (Customer Satisfaction Index) is an element used in determining Management Board
• Neighbourhood development: not only maintenance, modernization, shaping the residential environment, but also supporting social or cultural facilities or educational
• Social Commitment: several initiatives, e.g. Vonovia Foundation, Vonovia

Climate and Environmental Protection:

• Reduction of energy and emission consumption: e. g. modernization of energy systems, modern boilers, intelligent thermostats. Further measures against climate change: e. g. expansion of renewable energy sources, targeted purchasing of
• Several health programs, support work-life-balance, participation in company's success
• 2016: GdW: Award as an exemplary training company and from Focus Money the award "Germany's best training companies".
• German Olympic Sports Federation, representatives of the Sports Ministers' Conference and the German Chambers of Industry and Commerce honouredVonovia as a top sports-friendly company in 2017.

German Residential – Safe Harbor and Low Risk

1. Q1 2018 results 3. Housekeeping

2. Wrap-up 5. 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

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:

1. Wrap-up 5. Appendix

2. Building permits often take several years because city administrations lack qualified personnel.

3. Severe shortage of building capacity after years of downsizing.

4. Q1 2018 results 3. Housekeeping

Substantial gap between in-place values and market replacement cost render construction in affordable segment 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.

Sources: JLL Research, European Commission, Federal Statistics Office, Eurostat

Sources: Federal Statistics Office, Eurostat, JLL Research, own calculations

No Correlation between Interest Rates and Asset Yields

1. Q1 2018 results 3. Housekeeping

2. Wrap-up 5. 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 120bps since 1992).
• Asset yields outperformed interest rates by 240bps on average since 1992 and 550bps in June 2016.

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

h l T V e e a a r u
hlig hts 1. Hig	lts 2. Q 1 2 01 8 r esu	kee 3. Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

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.

Q1 2018 Earnings Call

Dortmund

Frankfurt

Essen

Dresden

d M i i O t o e r n z a o n -
1. Hig hlig hts	2. Q 1 2 01 8 r lts esu	3. Ho kee ing use p	4. Wr ap -up	5. Ap nd ix pe

Elmshorn

Modernization - Upgrade Building

1. Q1 2018 results 3. Housekeeping

Kerpen

Q1 2018 Earnings Call

S C d l C i M i t t t p e e o n o o n o n a c r a u a r s r u c -
hlig hts 1. Hig	lts 2. Q 1 2 01 8 r esu	kee 3. Ho ing use p	4. Wr ap -up	nd 5. Ap ix pe

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 Vonovia'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.

This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.

This presentation is neither an advertisement nor a prospectus and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by the attendees/recipients in connection with, the purchase of or investment in any securities of the Company. This presentation is selective in nature and does not purport to contain all information that may be required to evaluate the Company and/or its securities. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or on its completeness, accuracy or fairness.

This presentation is not directed to or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

Neither this presentation nor the information contained in it may be taken, transmitted or distributed directly or indirectly into or within the United States, its territories or possessions. This presentation is not an offer of securities for sale in the United States. The securities of the Company have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the securities of the Company may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States unless registered under the Securities Act.

Tables and diagrams may include rounding effects.