Vonovia SE

Investor Presentation • Sep 2, 2014

Franconia Portfolio

Acquisition of 5,042 residential and 209 commercial units with a focus on Berlin

September 2, 2014

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

Franconia portfolio with 5,042 residential units

• The flow of attractive portfolios remains very stable
• After the successful and fast DeWAG integration and being fully on track for the Vitus integration, new acquisition opportunities continue to be pursued as demonstrated by Deutsche Annington's strong pipeline
• For every acquisition we continue to have a disciplined approach. The preconditions for any purchase are:
• Fit to portfolio
• FFO/share accretion
• NAV/share at least neutral
• Maintaining our BBB rating

Acquisition of Franconia portfolio evidences our unique ability to act

• Franconia portfolio was signed on August 29th , 2014 at attractive conditions (14.4x NCR). Sellers are CitCor Residential Group (CitCor), a joint venture of Citigroup Property Investors and CORPUS SIREO.
• Closing is scheduled for year end. Integration to be fully completed in first half of 2015.
• Sizeable portfolio (5,042 residential units), strengthening Deutsche Annington's presence in locations like Berlin, Dresden, Leipzig and Erfurt
• The attractive portfolio is accretive to our strategy and KPIs
• Funding driven by maintaining Deutsche Annington's BBB investment grade rating (stable outlook) at most favorable conditions available
• Deal evidences our unique ability to act:
• Deutsche Annington's rating, with our ability to raise corporate bond financing, allows us to close out transactions quickly
• This deal demonstrates our position as a preferred buyer of portfolios where transaction security can often be just as important as pricing

The Franconia portfolio fulfills Deutsche Annington s acquisition criteria in all aspects

Franconia perfectly fits into our portfolio strategy

Current return in %

Franconia portfolio strengthens our presence in locations like Berlin, Dresden, Erfurt and Leipzig

¹ Franconia figures as of 31.07.2014, DAIG as of 31.12.2013 incl. DeWAG + Vitus (used for comparison purposes)

Portfolio Comparison¹

DAIG
Franconia		Franconia	DAIG	Combined
	Number of residential	units 5.042	216.789	221.831
	Vacancy	4.8%	3.6%	3.6%
	Rent/sqm (€)	5.52	5.40	5.40
	Net Cold Rent (€	p.a.) 22.4	897.6	920.0
	Multiple2	14.4x	14.3x	14.3x

Portfolio Splits

² DAIG valuation multiple; Franconia transaction multiple

Compelling upside potential in 35% of the portfolio: 272 "Upgrade Buildings" units, 1,497 "Optimize Apartments"

¹ DAIG as of 31.12.2013 incl. DeWAG + Vitus (used for comparison purposes)

² Franconia as of 31.07.2014

Franconia portfolio delivers steady EBITDA growth

Resulting FFO I Yield of more than 8% after 3 years

Note: DAIG Financing with the assumption of 50% Equity/Debt Financing on a long term basis

Note: DAIG Financing with the assumption of 50% Equity/Debt Financing on a long term basis

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