Vonovia SE — Call Transcript 2020

Mar 5, 2020

FY 2019 Earnings Call March 5, 2020

Rolf Buch, CEO Helene von Roeder, CFO

Agenda

Highlights	3-5
Segment Results & Portfolio	6-12
Valuation & NAV	13-16
LTV & Financing	17-18
Update on Activities in Sweden	19
Berlin-specific Rent Freeze Update	20
Guidance	21
Wrap-up	22
Appendix	23

• We are reporting the 7th set of annual results as a listed company. As in every prior year, we have managed to improve our results and almost all relevant KPIs.

• We have successfully built our business on a broad and stable footing, and we look ahead with optimism not just to the remainder of 2020 but also beyond.

• We are confident that embracing the challenges and opportunities that result from the megatrends of urbanization and supply/demand imbalance, energy efficiency, and demographic change, will safeguard our future success.

• Our commitment to actively work on solutions for challenges facing the industry and society in general is crucial for the long-term support of our business model.

¹ Based on prevailing internal management KPI, which was FFO1 from 2013-2018 and Group FFO in 2019. ² 2019 DPS to be proposed to the AGM on May 13, 2020.

Fully Committed to the Long-term Nature of Our Business

FY 2019 Earnings Call

3% and innovative research

reduction

projects for CO²

lead by example

leader, we are determined to

and agreements

Highlights 2019
Highlights	Segment Results Valuation & Portfolio & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix
Performance	Y-o-y increase across all four segments Adj. EBITDA Total €1,760.1m (+13.2%) Group FFO1	€1,218.6m (+7.7%) and €2.25			per share (+3.2%; eop	shares)
NAV & Valuation	Adj. NAV per share €51.93 (+15.7% since YE 2018) 11.8% overall l-f-l value increase. €5.3bn total value growth in 2019
Dividend	€1.57 dividend per share (+9% y-o-y) to be proposed to the AGM on May 13, 2020 In line with prior years we expect to offer shareholders a choice between cash and scrip dividend
Capital Structure	LTV 43.1% (+30bps since YE 2018) Net debt/EBITDA multiple 11.5x (+10 bps)

¹ includes €3.8m contribution from Hembla for two months.

Highlights Segment Results & Portfolio Valuation & NAV LTV & Financing Berlin Rent Freeze Update Update Sweden Guidance Wrap-up Appendix Substantial Growth in All Four Segments from Larger Portfolio Volume and Performance Improvements

• 13.2% Adj. EBITDA Total growth and 7.7% Group FFO growth on the back of a 3% larger portfolio and performance improvements.
• While the operating business with the rental and value-add segments remains the primary performance driver, recurring sales and development made an increased contribution in 2019.

¹ Consolidation in 2019 (2018) comprised intragroup profits of €43.9m (€38.8m), the valuation result of development to hold of €58.9m (€18.7m), and IFRS 16 effects of €29.9m (€0.0m).

Acquisitions and Organic Growth Drive Adj. EBITDA Rental

Adj. EBITDA Rental	1,437.4	1,315.1	+9.3%
Operating expenses	-328.6	-289.4	+13.5%
Maintenance expenses	-308.9	-289.7	+6.6%
Rental income	2,074.9	1,894.2	+9.5%

acquisition of Buwog, Victoria Park, and Hembla plus organic rental growth and more than outweighed the rental income dilution from disposals.

Rental Segment

The increase in operating expenses is mainly attributable to the full-year inclusion of ~€40m (pass-through) ancillary expenses for Victoria Park due to the all-inclusive rent system in Sweden.

Rental income by geography

EBITDA Operations margin Germany¹

¹ EBITDA Operations margin (Adj. EBITDA Rental + Adj. EBITDA Value-add – intragroup profits) / Rental Income. 2019 margin includes positive impact from IFRS 16. Cost per unit is defined as (Rental Income – EBITDA Operations + Maintenance) / average no. of units.

FY 2019 Earnings Call

• Organic rent growth of 3.9% year-on-year. The marginally lower growth rate is the result of the combined impact of several factors including mainly
• 2019 Berlin Mietspiegel not implemented;
• The 10% rental cap ("Mietpreisbremse") effect on the market and political influence on Mietspiegel;
• Declining fluctuation and an increasing number of our apartments already at Mietspiegel level;
• Reduction of modernization allocation from 11% to 8% and our voluntary restriction to grow rents by a max. of €2/sqm following modernizations;
• Scarcity of construction/craftsmen labor and increasingly comprehensive investments that result in a more extended period for realizing the full rent growth.

Highlights Segment Results & Portfolio Valuation & NAV LTV & Financing Berlin Rent Freeze Update Update Sweden Guidance Wrap-up Appendix Continued Dynamic Growth in Adj. EBITDA Value-add Value-add Segment

• Two types of value-add: (i) internal savings mainly via craftsmen organization and (ii) additional revenue through external income by offering services at market prices but on a lower cost basis due to efficiencies and size.
• Insourcing of services to ensure maximum process management and cost control.
• Expansion of core business to generate additional revenues by walking back the value chain and offering services that were previously provided by third parties (internalization of margin).
• Cash flows from Adj. EBITDA Value-add are not included in the portfolio valuation, and as a consequence ignored in NAV.
• Applying the impairment test discount rate¹ to the 2019 Adj. EBITDA Value-add suggests an additional value between ca. €5 and €6 per share (ca. 9-12% on top of YE2019 Adj. NAV).

¹ Pre-tax WACC in impairment test of 4.1% in 2019 (2018: 5.1%).

							Segment
Adj. EBITDA Contribution from Recurring Sales Up 16.2%
Segment Results Highlights & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix
	Smaller sales volume but higher proceeds and fair value step-up y-o-y,					Recurring sales by geography1
	reflecting on a healthy market environment.
	FV step-up improvement also driven by disposals in Austria.					Austria 31%
Avg. sales prices up 11%	y-o-y.
	Outside the Recurring Sales Segment we sold 2,177			non-core units in			Germany 69%
	2019 with a fair value step-up of 15.8%.
	Recurring Sales Segment (€m)			2019	2018	Delta
Units sold				2,607	2,818	-7.5%
	Gross proceeds			365.1	356.1	+2.5%
Fair value				-258.4	-262.8	-1.7%
Adjusted result				106.7	93.3	+14.4%
	Fair-value step-up			41.3%	35.5%	+580bps
Selling costs				-14.8	-14.2	+4.2%

Recurring Sales

Adj. EBITDA Recurring Sales 91.9 79.1 +16.2%

¹ Based on sales proceeds.

Highlights Segment Results & Portfolio Valuation & NAV LTV & Financing Berlin Rent Freeze Update Update Sweden Guidance Wrap-up Appendix This segment includes the contribution of to-sell and to-hold constructions of new buildings. Not included is the construction of new apartments by adding floors to existing buildings, as this happens in the context of, and is accounted for, under modernization. Germany 62% Austria 36% Sweden 2% Development to hold (by fair value) Germany 53% Austria 47% Development to sell (by income) Development Segment (€m) 2019 2018 Delta Income from disposal of "to sell" properties 249.5 225.1 +10.8% Cost of Development to sell -197.3 -181.8 +8.5% Gross profit Development to sell 52.2 43.3 +20.6% Fair value Development to hold 266.3 98.0 >100% Cost of Development to hold -207.4 -79.3 >100% Gross profit Development to hold 58.9 18.7 >100% Operating expenses Development segment -26.6 -22.6 +17.7% Adj. EBITDA Development 84.5 39.4 >100%

Development Segment

Ramp-up of Development Business Continues

Vonovia's Contribution towards Reducing the Housing Shortage

Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix

New rental apartments for our own portfolio ("to hold")

• 1,301 units completed in 2019 (including floor additions). Pipeline with ca. 40,000 apartments
• Total pipeline of ca. 40,000 units, of which more than 70% in Germany and the remainder in Austria and Sweden.
• Average apartment size between 60-70 sqm and broadly in line with overall portfolio average.
• The development to-hold investment volume is part of the overall investment program.

Development Segment

2020 target: up to 1,500 completions

New apartments for retail disposal ("to sell")

• Total pipeline volume of ca. €2.6bn (ca. 7,000 apartments), of which ca. 60% in Germany and ca. 40% in Austria.
• Investment capital for Development to sell is not part of investment program.
• Average apartment size between 70-80 sqm.
• Average investment volume of ~€4.5k per sqm.
• Expected gross margin between 20-25% on average.

Pipeline with ca. 7,000 apartments ⁷⁹¹ units completed in 2019.

2020 target: up to 500 completions

¹ In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden includes ancillary costs and Austria includes maintenance and property improvement contributions from tenants. The data above shows the rental level unadjusted to the German definition. ² Includes value uplift after modernization and new construction (2019: €342m, 2018: €194m) and currency impact from value changes in Swedish Krona (2019: +€32m, 2018: +€33m).

53.3 44.4 5.8 3.1

Total 5,274 4,581

Fair value (€bn)

Segment Results Highlights & Portfolio	Valuation LTV & NAV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix
2019 l-f-l	YC + Performance	Invest	Total value growth (YC + performance + invest)
Dresden	12.2%	2.4%
Hanover	12.2%	3.5%
Rhine Main	11.6%	1.2%			Sweden 11.0%
Munich	11.0%	0.9%
Berlin	11.1%	1.4%
Hamburg	10.2%	1.9%
Rhineland	10.2%	2.0%		Kiel 10.9%
Leipzig	9.6%	1.1%		Hamburg 12.2%
Westphalia	9.0%	6.5%	Bremen 9.9%
Southern Ruhr	9.5%	4.9%
Stuttgart	9.0%	1.1%	Hanover 15.7%		Berlin 12.5%
Kiel	9.1%	1.7%	Westphalia 15.6%
Northern Ruhr	7.2%	3.3%	N. Ruhr Area 10.5%
Freiburg	7.8%	1.0%	S. Ruhr Area 14.4%	Leipzig 10.6%	Dresden 14.6%
Bremen	5.5%	4.4%	Rhineland 12.2%
Other Strategic Locations	8.9%	2.0%	Rhine Main 12.8%
Total German Strategic Portfolio	10.2%	2.2%
Non-strategic Locations	1.2%	0.8%		Stuttgart 10.1%
Vonovia Germany	10.0%	2.2%	Freiburg 8.8%	Munich 11.9%	Austria 5.3%
Vonovia Sweden	8.2%	2.8%
Vonovia Austria	4.6%	0.7%
Vonovia	9.6%	2.2%

Broad-based Value Growth across All Markets

We Are Invested in the Right Markets

Highlights Segment Results & Portfolio

LTV & Financing

Berlin Rent Freeze Update Update Sweden Guidance Wrap-up Appendix

Growing and shrinking regions¹

The German Federal Office for Construction and Urban Development (BBSR) has analyzed all cities and counties in

Aggregate total value growth 2017 – 2019 (%)²

Total aggregate value growth of 41% in strategic locations

	Adj. NAV Growth of +15.7% per share
Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix

• Adj. NAV increased by 21.1% to €28.2bn.
• Adj. NAV per share increased by 15.7% on a 4.7% higher number of shares.

€m (unless indicated otherwise)	Dec. 31, 2019	Dec. 31, 2018
Equity attributable to Vonovia's shareholders	19,308.3	17,880.2
Deferred taxes on investment properties	10,288.9	8,161.1
Fair value of derivative financial instruments1	79.8	87.2
Deferred taxes on derivative financial instruments	-22.4	-23.5
EPRA NAV	29,654.6	26,105.0
Goodwill	-1,492.7	-2,842.4
Adj. NAV	28,161.9	23,262.6
EPRA NAV €/share	54.69	50.39
Adj. NAV €/share	51.93	44.90
Number of shares (eop)	542.3	518.1

¹ Adjusted for effects from cross currency swaps.

• Against the background of the stable cash flows and the strong long-term fundamentals in our portfolio locations, largely driven by a structural supply/demand imbalance, we see continued upside potential for our property values and do not see material long-term downside risks for our portfolio.
• We remain committed to our LTV target range of 40-45%.

€m (unless indicated otherwise)	Dec 31, 2019	Dec 31, 2018
Non-derivative financial liabilities	23,574.9	20,136.0
Foreign exchange rate effects	-37.8	-33.5
Cash and cash equivalents	-500.7	-547.7
Net debt	23,036.4	19,554.8
Sales receivables/prepayments	21.4	-256.7
Adj. net debt	23,057.8	19,298.1
Fair value of real estate portfolio	53,316.4	44,239.9
Shares in other real estate companies	149.5	800.3
Adj. fair value of real estate portfolio	53,465.9	45,040.2
LTV	43.1%	42.8%
LTV (incl. perpetual hybrid)	45.0%	45.1%
Net debt/EBITDA multiple1	11.5x	11.4x

¹ Adj. net debt quarterly average over Adj. EBITDA Total (LTM), adj. for IFRS 16 effect.

Solid Capital Structure with Smooth Maturity Profile and Diverse

¹Excl. equity hybrid. ² Adj. net debt quarterly average over Adj. EBITDA Total (LTM), adjusted for IFRS 16 effect. ³Adj. EBITDA (LTM) / FFO Interest Expense (LTM). ⁴Incl. tap bond €200m in Feb 2020.

Highlights	Segment Results Valuation LTV Berlin Rent Freeze Update Sweden Guidance Wrap-up Appendix & Portfolio & NAV & Financing Update
	Our primary objective in Sweden is to show that Vonovia's business model of a scalable operating platform and efficiencies can be replicated in a similar market and that over time the KPIs in Sweden will develop on a comparable upward trajectory
Hembla Acquisition Update	Jan 9, 2020: Final result of the tender offer (95.3% of voting rights and 94.1% of share capital) with subsequent settlement. Jan 10, 2020: De-listing of Hembla shares completed. Squeeze-out proceedings initiated and expected to take around one year (acquisition of 100% is already fully financed).
Business Update	Victoria Park and Hembla have a very complementary geographical footprint, and this creates a strong platform for further growth in Sweden. The project to harmonize the relevant systems and to establish one common operating platform that we can continue to develop is underway and fully on track. This will create a strong foundation for building future scale, drawing from our experience and expertise in Germany. Our positive view of the Swedish residential markets has been confirmed, with our expectations fully met and in some cases even exceeded. ~€200m targeted investment volume in Sweden for 2020 (part of overall €1.3-€1.6bn for the group); predominantly earmarked for proven Optimize Apartment strategy.

Update on Our Operations in Sweden

• The Berlin State Parliament passed the Berlin-specific rent freeze final legislation on Jan. 30, 2020, as expected, and it became law on Feb. 23.
• According to statements made by the federal-level CDU, a sufficient number of members of parliament support legal action against the legislation and are expected to file a law suit directly with the Federal Constitutional Court ("Normenkontrollklage") before the parliamentary summer break. Similarly, the opposition in the Berlin Parliament has declared its intention to sue the Berlin Senate in front of the Berlin State Constitutional Court.
• Our process is underway to submit letters to all tenants in Berlin to inform them about their relevant rental levels in line with the rent freeze legislation.
• We continue to believe that the spillover risk into other jurisdictions is extremely low. We consider this to remain a Berlin-specific situation which will not be copied by other states (except in the unlikely event that the Federal Constitutional Court were to rule largely in favor of the legislation).

2020 Guidance
Segment Results Valuation LTV Highlights & Portfolio & NAV & Financing	Berlin Rent Freeze Update Sweden Update	Guidance Wrap-up Appendix
	2019 Actuals	2020 Guidance
Organic rent growth (eop)	3.9%	~3.5 - 4.0% (largely depending on one-off reduction of in place rents in Berlin to 120% of rent ceiling)
Rental Income	€2,074.9m	€~2.3bn
Recurring Sales (# of units)	2,607	~2,500
FV step-up Recurring Sales	41.3%	~30%
Adj. EBITDA Total (€m)	1,760.1	1,875 – 1,925
Group FFO (€m)	1,218.6	1,275 – 1,325
Dividend (€/share)	1.571	70% of Group FFO per share
Investments (€m)	1,489.5	1,300 – 1,600

¹To be proposed to the Annual General Meeting in May 2020.

Note: 2019 includes Hembla for two months; 2020 includes Hembla for the full year.

LTV

Our performance in all four business segments remains strong, and we are confident in our ability to deliver on our 2020 guidance and beyond.

The market fundamentals are still very supportive for continued sustainable earnings and value growth.

Our business and geographic footprint are broad and robust enough to manage the elevated impact of political and regulatory influence.

We are convinced that our efforts around stakeholder reconciliation and ESG are crucial for the long-term success of Vonovia.

Segment Results Valuation LTV Berlin Rent Freeze Highlights Update Sweden & Portfolio & NAV & Financing Update	Berlin Rent Freeze Guidance Wrap-up Appendix Update

Appendix

Acquisition of Project Developer BienRies in Rhine Main Metropolitan Region

Highlights	Segment Results Valuation LTV Berlin Rent Freeze Update Sweden Guidance Wrap-up Appendix & Portfolio & NAV & Financing Update
Transaction	Acquisition of 100% of the shares in Bien-Ries AG, a residential project developer in the Rhine Main metropolitan region Purchase agreement signed on March 3 with closing expected early Q2 2020 Small synergy contribution from avoiding dual corporate and overhead structures and full integration into Buwog development business and IT infrastructure
Rationale	Build up Buwog development capabilities and know how in Rhine Main metropolitan region
Benefits	Excellent network in Rhine Main Metropolitan Region Well connected to local authorities High level of operational skills and expertise
Ideal fit	Rhine Main metropolitan region is highly complementary to current Buwog footprint in Hamburg, Berlin and Leipzig Development approach and general mindset similar to Buwog Focus is on apartments for medium income, not high end
Project pipeline	Total project pipeline of ca. 2,500 apartments with varying degrees of completion. We estimate ca. 1/3 of the total volume suitable for Development to Hold

		Fair value1		Residential	In-place rent
Dec 31, 2019	(€bn)	% of total	(€/sqm)	units	(€/sqm/month)
Operate	10,954	21%	1,893	85,125	7.17
Invest	27,921	54%	1,890	238,235	6.64
Strategic	38,875	75%	1,891	323,360	6.78
Recurring Sales	3,887	8%	2,021	28,153	6.90
Non-core	514	1%	1,333	4,195	6.26
Vonovia Germany	43,276	84%	1,893	355,708	6.79
Vonovia Sweden	5,642	11%	1,899	38,065	9.46
Vonovia Austria	2,655	5%	1,455	22,463	4.64
Vonovia Total	51,573	100%	1,865	416,236	6.93

Note: In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden includes ancillary costs and Austria includes maintenance and property improvement contributions from tenants. The table above shows the rental level unadjusted to the German definition.

¹ Fair value of the developed land excluding €2,038.0m, of which €547.5m for undeveloped land and inheritable building rights granted, €387.9m for assets under construction, €531.9m for development, €294.6m IFRS 16 effect and €276.1m for other.

Regional Cluster

Highlights	Segment Results & Portfolio	Valuation & NAV		LTV & Financing		Update Sweden		Berlin Rent Freeze Update	Guidance		Wrap-up		Appendix
		Fair value1						In-place rent
	Regional Market	(€m)	(€/sqm)	Residential units	Vacancy (%)	Total (p.a., €m)	Residential (p.a., €m)	Residential (€/sqm/ month)	Organic rent growth (LTM, %)	Multiple (in-place rent)	Purchase power index (market data)2	Market rent increase forecast Valuation (% p.a.)	Average rent growth (LTM, %) from Optimize Apartment
Berlin		7,450.0	2,677	42,241	1.2	228	217	6.84	3.7	32.6	81.3	1.8	48.8
Rhine Main Area (Frankfurt, Darmstadt, Wiesbaden)		4,432.0	2,484	27,488	1.4	178	172	8.32	3.8	24.9	105.9	1.8	34.2
Southern Ruhr Area (Dortmund, Essen, Bochum)		3,850.5	1,417	43,579	3.1	198	192	6.19	5.0	19.5	89.1	1.5	31.3
Rhineland (Cologne, Düsseldorf, Bonn)		3,822.7	1,969	28,523	2.3	169	161	7.26	3.0	22.7	100.8	1.7	28.9
Dresden		3,584.8	1,563	38,519	3.4	168	158	6.23	3.9	21.4	82.6	1.7	26.6
Hamburg		2,762.2	2,148	19,818	1.8	110	106	7.16	3.6	25.0	98.9	1.6	38.9
Munich		2,283.3	3,493	9,668	1.0	66	62	8.24	2.9	34.6	123.7	1.9	46.1
Stuttgart		2,122.9	2,382	13,796	1.4	86	82	8.04	3.6	24.7	105.7	1.8	36.2
Kiel		2,101.9	1,523	23,220	2.2	105	100	6.38	4.1	20.1	74.8	1.7	35.7
Hanover		1,873.5	1,790	16,287	2.5	84	81	6.74	4.1	22.3	90.3	1.7	35.4
Northern Ruhr Area (Duisburg, Gelsenkirchen)		1,696.9	1,061	25,608	3.2	110	107	5.82	3.3	15.4	81.4	1.2	25.1
Bremen		1,182.3	1,597	11,853	3.1	52	49	5.94	5.1	22.8	84.3	1.8	39.3
Leipzig		958.3	1,544	9,185	2.8	44	42	6.11	2.5	21.6	76.3	1.8	26.2
	Westphalia (Münster, Osnabrück)	903.2	1,449	9,473	3.2	46	45	6.23	4.9	19.8	90.9	1.5	38.8
Freiburg		657.2	2,355	4,043	1.1	25	25	7.50	3.0	25.9	86.9	1.7	40.1
Other Strategic Locations		2,899.8	1,673	26,778	3.1	138	133	6.75	3.4	21.0	-	1.6	33.0
	Total Strategic Locations Germany	42,581.5	1,903	350,079	2.4	1,807	1,733	6.79	3.8	23.6	-	1.7	33.9
Non-Strategic Locations		694.7	1,409	5,629	7.0	35	29	6.35	0.5	20.0	-	1.7	23.4
Germany total		43,276.2	1,893	355,708	2.5	1,842	1,761	6.79	3.7	23.5	100.0	1.7	33.9
Sweden		5,642.0	1,899	38,065	2.3	331	303	9.46	5.3	17.1	-	2.0	-
Austria		2,654.9	1,455	22,463	4.7	107	89	4.64	4.1	24.7	-	1.6	-
Total Vonovia		51,573.1	1,865	416,236	2.6	2,280	2,154	6.93	3.9	22.6	-	1.7	n/a

Note: In-place rents in Austria and Sweden are not fully comparable to Germany, as Sweden includes ancillary costs and Austria includes maintenance and property improvement contributions from tenants. The table above shows the rental level unadjusted to the German definition.

¹ Fair value of the developed land excluding €2,038.0m, of which €547.5m for undeveloped land and inheritable building rights granted, €387.9m for assets under construction, €531.9m for development, €294.6m IFRS 16 effect and €276.1m for other. ² Source: GfK (2020). Data refers to the specific cities indicated in the tables, weighted by the number of households where applicable.

• Increasingly comprehensive investment projects incl. neighborhood developments and new construction result in more extended periods between investment and full rent growth realization.
• 2% of 2017 investment program rent growth, 41% of 2018 investment program rent growth and 62% of 2019 investment program rent growth for an aggregate incremental rental income of ~ €54m p.a. are still in the pipeline as investments are underway but not fully completed.

Year-by-year rent growth materialization from investment programs

FY 2019 Earnings Call

Covenants and KPIs (Dec 31, 2019)
Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix
Bond KPIs		Covenant				Level		Dec. 31, 2019

LTV
Total Debt / Total Assets	<60%	42%
Secured LTV
Secured Debt / Total Assets	<45%	15%
ICR
Last 12M EBITDA / Last 12M Interest Expense	>1.80x	4.9x
Unencumbered Assets
Unencumbered Assets / Unsecured Debt	>125%	196%

S&P Rating KPIs	Covenant	Level (BBB+)
	Debt to Capital
	Total Debt / Total Equity + Total Debt	<60%
	ICR
	Last 12M EBITDA / Last 12M Interest Expense	>1.80x

Scope Rating KPIs	Covenant	Level (A-)
	Loan to Value ratio	<45%

Bonds / Rating

Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix

Corporate Investment grade rating as of 2018-08-02

Rating agency	Rating	Outlook	Last Update
Scope	A-	Stable	13 Dec 2019
Standard & Poor's	BBB+	Stable	23 Sep 2019

Bond ratings as of 2018-08-02

Name	Tenor & Coupon	ISIN	Amount	Issue price	Coupon Final Maturity Date		Rating
							Scope	S&P
Bond 004 (USD-Bond)	10 years 5.000%	US25155FAB22	USD 250m	98.993%	4.580%(1)	02 Oct 2023	A-	BBB+
Bond 005 (EMTN)	8 years 3.625%	DE000A1HRVD5	€ 500m	99.843%	3.625%	08 Oct 2021	A-	BBB+
Bond 007 (EMTN)	8 years 2.125%	DE000A1ZLUN1	€ 500m	99.412%	2.125%	09 July 2022	A-	BBB+
Bond 008 (Hybrid)	perpetual 4%	XS1117300837	€ 1,000m	100.000%	4.000%	perpetual	BBB	BBB
Bond 009A (EMTN)	5 years 0.875%	DE000A1ZY971	€ 301m(2)	99.263%	0.875%	30 Mar 2020	A-	BBB+
Bond 009B (EMTN)	10 years 1.500%	DE000A1ZY989	€ 500m	98.455%	1.5000%	31 Mar 2025	A-	BBB+
Bond 010B (EMTN)	5 years 1.625%	DE000A18V138	€ 752m(2)	99.852%	1.625%	15 Dec 2020	A-	BBB+
Bond 010C (EMTN)	8 years 2.250%	DE000A18V146	€ 1,000m	99.085%	2.2500%	15 Dec 2023	A-	BBB+
Bond 011A (EMTN)	6 years 0.875%	DE000A182VS4	€ 500m	99.530%	0.875%	10 Jun 2022	A-	BBB+
Bond 011B (EMTN)	10 years 1.500%	DE000A182VT2	€ 500m	99.165%	1.5000%	10 Jun 2026	A-	BBB+
Bond 013 (EMTN)	8 years 1.250%	DE000A189ZX0	€ 1,000m	99.037%	1.250%	06 Dec 2024	A-	BBB+
Bond 014A (EMTN)	5 years 0.750%	DE000A19B8D4	€ 500m	99.863%	0.750%	25 Jan 2022	A-	BBB+
Bond 014B (EMTN)	10 years 1.750%	DE000A19B8E2	€ 500m	99.266%	1.750%	25 Jan 2027	A-	BBB+
Bond 015 (EMTN)	8 years 1.125%	DE000A19NS93	€ 500m	99.386%	1.125%	08 Sep 2025	A-	BBB+
Bond 017A (EMTN)	6 years 0.750%	DE000A19UR61	€ 500m	99.330%	0.750%	15 Jan 2024	A-	BBB+
Bond 017B (EMTN)	10 years 1.500%	DE000A19UR79	€ 500m	99.439%	1.500%	14 Jan 2028	A-	BBB+
Bond 018A (EMTN)	4.75 years 3M EURIBOR+0.450%	DE000A19X793	€ 600m	100.000%	0.793% hedged	22 Dec 2022	A-	BBB+
Bond 018B (EMTN)	8 years 1.500%	DE000A19X8A4	€ 700m(3)	99.188%	1.500%	22 Mar 2026	A-	BBB+
Bond 018C (EMTN)	12 years 2.125%	DE000A19X8B2	€ 500m	98.967%	2.125%	22 Mar 2030	A-	BBB+
Bond 018D (EMTN)	20 years 2.750%	DE000A19X8C0	€ 500m	97.896%	2.750%	22 Mar 2038	A-	BBB+
Bond 019 (EMTN)	5 years 0.875%	DE000A192ZH7	€ 500m	99.437%	0.875%	03 Jul 2023	A-	BBB+
Bond 020 (EMTN)	6.5 years 1.800%	DE000A2RWZZ6	€ 500m	99.836%	1.800%	29 Jun 2025	A-	BBB+
Bond 021A (EMTN)	10 years 0.500%	DE000A2R7JD3	€ 500m	98.965%	0.500%	14 Sep 2029	A-	BBB+
Bond 021B (EMTN)	15 years 1.125%	DE000A2R7JE1	€ 500m	99.822%	1.125%	14 Sep 2034	A-	BBB+
Bond 022A (EMTN)	3.5 years 0.125%	DE000A2R8NC5	€ 500m	99.882%	0.125%	06 Apr 2023	A-	BBB+
Bond 022B (EMTN)	8 years 0.625%	DE000A2R8ND3	€ 500m	98.941%	0.625%	07 Oct 2027	A-	BBB+
Bond 022C (EMTN)	20 years 1.625%	DE000A2R8NE1	€ 500m	98.105%	1.625%	07 Oct 2039	A-	BBB+

(1) EUR-equivalent Coupon

(2) Nominal amount outstanding after Liability Management in Sep 2019

(3) Nominal amount incl. tap bond €200m in Feb 2020

IR Contact & Financial Calendar

Segment Results Valuation Highlights & Portfolio & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix
Contact			Financial Calendar 2020
Rene Hoffmann (Head of IR)		Mar 5	Full-year results 2019
Primary contact for Sell side, Buy side		Marc 6	Full-year roadshow, Frankfurt (Commerzbank) virtual RS
+49 234 314 1629		Mar 09 & 10	Full-year roadshow, London (Morgan Stanley) virtual RS
rene.hoffmann@vonovia.de		Mar 11	Full-year roadshow, Paris (Bank of America Merril Lynch) virtual RS
Stefan Heinz		Mar 12	Full-year roadshow, Amsterdam (Kempen) virtual RS
Primary contact for Sell side, Buy side +49 234 314 2384		Mar 17 & 18	Non-deal roadshow, Kopenhagen & Helsinki (Hauck & Aufhäuser)			1
stefan.heinz@vonovia.de		Mar 24	Deutschlandkonferenz, Baden-Baden (Bankhaus		Lampe)1
Oliver Larmann		Mar 26 & 27	European Real Estate Conference, London (Bank of America Merrill Lynch)
Primary contact for private investors, AGM		Apr 1	Non-deal roadshow, Edinburgh (Berenberg) 1
+49 234 314 1609		Apr 2	German Real Estate Forum, London (Commerzbank)1
oliver.larmann@vonovia.de		May 5	Interim results 3M 2020
General inquiries		May 13	Annual General Meeting
investorrelations@vonovia.de		May 19 & 20 European Property Seminar, Amsterdam (Kempen)
		May 27	Best of Europe One-on-One Conference, New York City (UBS)1
App & Website		June 04	DB Access Berlin Conference, Berlin (Deutsche Bank)
		June 09	European CEO Conference, Paris (Exane)
		June 10	European Financials Conference, Rome (Goldman Sachs)
		June 17	German & Austrian Property Day, Paris (KeplerCheuvreux)			1
		June 18	Europe & EEMEA Property Conference, London (Morgan Stanley)
		June 26	Vonovia 7th Capital Market Day, Vienna (dinner on June 25)
		Aug 5	Interim results H1 2020
		Sept 03	Corporate Conference 2020, Frankfurt (Commerzbank)1
		Sept 21	German Corporate Conference 2020, Munich (Berenberg & Goldman Sachs)
		Sep 23	Investment Conference 2020, Munich (Baader)		1
https://investors.vonovia.de		Nov 4	Interim results 9M 2020

The most up-to-date financial calendar is always available online.

¹ IR only

Disclaimer
Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix

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.

For Your Notes
Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix

For Your Notes
Highlights	Segment Results & Portfolio	Valuation & NAV	LTV & Financing	Update Sweden	Berlin Rent Freeze Update	Guidance	Wrap-up	Appendix