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Vonovia SE

Investor Presentation Sep 21, 2015

477_ip_2015-09-21_9bd6af94-d0ca-462b-a451-b3761727b00d.pdf

Investor Presentation

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Berenberg & Goldman Sachs German Corporate Conference 2015

Munich, 21 September 2015

Vonovia Market Update

Recent events

  • Deutsche Annington has been rebranded to Vonovia on September 2, 2015, following the integration of Gagfah
  • The tickers have been changed accordingly
  • Bloomberg:
  • ANN:GY VNA:GY
  • Reuters:
  • ANNGn.DE VNAn.DE
  • Vonovia will enter the DAX 30 Index as per market opening on September 21, 2015 with a free float market cap of c€13bn
  • Vonovia's daily turnover of c€40m** (#2 real estate company in Europe is expected to further increase

Liquidity Ranking of European Real Estate Companies

# Co
m
p
an
y
To
ta
l t
ur
no
ve
r
(
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)
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Da
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ly
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i
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Shareholder structure*

* As of August 27, 2015

Calculated based on all trading days in 2015 ytd

Sources: Bloomberg, Deutsche Börse, Kempen & Co Analysis

2015 guidance confirmed and specified

2
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4

Incl. acquisitions pro rata; per share numbers based on 466.0 million shares currently outstanding

2Incl. goodwill (guidance excl. goodwill: €22-23/share)

To be recommended to the AGM. Going forward, the stated dividend policy of ~70% of FFO1 (Group) remains unchanged

FY 2014 is TERP-adjusted (TERP factor=1.051). FY 2014 not TERP adjusted: FFO1 Group/share=€1.06, EPRA NAV/share=€24.22, Dividend/share=€0.78

Business Strategy

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Operating performance

Property Mgmt. Strategy

1

Operating performance (cont'd)

Property Mgmt. Strategy

1

1)Per share data based on number of shares outstanding as of 31 Dec 2012 (200.0m), 31 Dec 2013 (224.2m), 30 June 2014 (240.2m), 31 Dec 2014 (271.6m), 30 June 2015 (358.5m) 2)Per unit data based on average number of units over the respective period

H1 2015 numbers include 4 months of GAGFAH

Platform Efficiency evidenced by DeWAGand Vitus

1

  • Business plan reflects efficiency gains from our platform
  • Actual performance exceeding business plan

Consolidated as of: DeWAG (1 April 2014), Vitus (1 Oct. 2014) Units as of 30 June 2015: DeWAG (11K), Vitus (20.5K)

Dividend policy: ~70% of FFO1

1

Without operating FFO growth after 2015

FFO build-up

2015 guidance incl. pro rata contribution of acquisitions: GAGFAH (10 months), Franconia (9 months), SÜDEWO (6 months)Based on number of outstanding shares per 31 Dec. 2014 = 271.6m and current = 466.0m

Proforma LTV of 50.0% close to mid-term target of <50%

Financing Strategy

2

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<

acquisition of Südewo/post rights issue

Maturity profile and financing sources

Financing Strategy

2

CMBS included at economic maturity01.0002.0003.0004.0005.0002015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 from 2027Mortgages Structured Loans Bond Hybrid Hybrid (Equity) CMBS SüDeWoMaturity Profile August 1, 2015 (€m)

  • Current maturity of around 7 years
  • Current interest cost of 2.9%
  • Refinancing of €1.9bn to increase unencumbrance
  • Target maturity of around 8 years

Focused & Action-driven Portfolio Management Strategy

Portfolio Mgmt. Strategy

Portfolio Management Strategy

Value-driven asset management approach in locations with above-average development potential

STRATEGIC

Operate: rent growth, vacancy reduction, effective and sustainable maintenance spending and cost savings.Upgrade buildings: comprehensive investments with a focus on energy efficiency

Optimize apartments: selective investments in individual flats (focus on senior living and high-end modernization in strong markets that allow a rental premium for fully refurbished apartments)

NON STRATEGIC

Locations and assets that do not form an integral part of Vonovia's strategy. Mostly average location and asset quality with stable cash flows. Under permanent review.

Privatize/ Non-core Privatize: opportunistic retail sales at attractive premiumsabove current valuation

Non-core: portfolio optimization through sale of assets that have limited development potential in terms of condition and/or location

Portfolio Breakdown

3

i
de
ia
l u
its
Re
nt
s
n
`00
0 s
qm
Va
rat
can
cy
e
lac
In-
t (
p
e r
en
/sq
)

m
*
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te
era
19
2,
10
6
11
76
2
,
%
2.5
5.6
4
de
Up
gra
bu
i
l
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gs
49
41
1
,
3,
09
1
2.6
%
5.6
9
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tim
ize
art
nts
ap
me
36
84
9
,
2,
37
8
2.5
%
6.1
9
ST
RA
TE
GIC
27
8,
36
6
17
23
1
,
%
2.5
5.7
2
NO
N S
TR
AT
EG
IC
31
67
6
,
1,
95
8
*
6.9
%
4.8
1
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ize
vat
21
47
7
,
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46
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4.7
%
5.6
0
No
n-c
ore
16
69
7
,
1,
02
3
11
.4%
4.5
0
TO
TA
L
34
8,
21
6
21
67
7
,
3.5
%
5.5
8

* As of June 30, 2015, all locations and assets of the GAGFAH portfolio that are strategically relevant are included in the "Operate" category. The analysis of the investment potential of the portfolio will be completed by Q3 2015.

Modernization Program remains an important Value Driver

Portfolio Mgmt. Strategy

Investment as a Continued Focus

3

  • Expected 2015 investment volume between €280 and €300 million including GAGFAH
  • Yield commitment of ~7% (unlevered) remains unchanged
  • Continuous investment focus on energy & demographic change
  • Well underway on execution of 2015 modernization program as expected(75 % of planned investment volume initiated and under construction)

Sales Results

Portfolio Mgmt. Strategy

3

PrivatizationH1 2014 H1 2015 Change (€m) Change (%) # units sold 1,190 1,221 31.0 3%Income from disposal of properties (€m) 118.3 123.6 5.3 4%Fair value disposals (€m) -88.6 -92.8 -4.2 5%Adjusted profit from disposal of properties (€m) 29.7 30.8 1.1 4%Fair value step-up 33.5% 33.2% -0.3pp Target ~30-35% Target ~30%Non-core disposalsH1 2014 H1 2015 Change (€m) Change (%) # units sold 702 2,829 2,127.0 303%Income from disposal of properties (€m) 20.6 97.8 77.2 375%Fair value disposals (€m) -19.1 -97.0 -77.9 408%Adjusted profit from disposal of properties (€m) 1.5 0.8 -0.7 -47%Fair value step-up 7.9% 0.8% -7.1pp Target = 0% Target = 0%

Berenberg & Goldman Sachs German Corporate Conference, Munich, 21 September 2015 Page 13

Extension strategy offers additional growthwith existing tenants

UP AND RUNNING

NEW BUSINESS

PROOF OF CONCEPT

4

Extension Strategy

GAGFAH integration ahead of plan

Acquisition Strategy

5

  • Granular integration processes in place and fully running
  • Headline 1Initial segmentation of combined portfolio completed (final allocation in Q3 2015)
  • Bottom-up synergy analysis completed
  • Corporate holding functions agreed including works council approval
  • IT integration of financial data completed / one integrated SAP-IT platform for the entire group (since 1 July 2015)
  • Dry run for rent collection successful (go-live on 15 December 2015)
  • Organizational integration of operational units (regions, TGS etc.) on track

  • Headline 2Integration ahead of schedule with higher synergies and lower one-off costs than planned

  • Substantially increased economies of scale (purchasing, extension strategy)
  • Increased scale de-risking the platform

GAGFAH: Bottom-up analysis results in much higher synergies at lower cost 5 Acquisition Strategy

Pro
rty
pe
&
Ma
nt
na
ge
me
ion
Ext
en
s
fts
(
) a
fur
he
Cra
TG
S
d
nsi
t
xte

me
n
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r e
on
ba
lco
/
ba
h-t
b a
d
dit
Lev
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t

era
ge
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s
u
ha
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erv
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ha
Inc
sin

rea
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urc
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rt

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ncy
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lem
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ies
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ati
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ort
t

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rga
on
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IT
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rat
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ost

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ces
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%
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5
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ing
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ies
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fo
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ati
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ts

ov
ve
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ge
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ce
me

8
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he
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st

rso
nn
e
ov
er
a
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ts
s
At
nt
an
no
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ce
me
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r
li
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tio
uis
itio
rtm
ts

nso
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8
%
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ing
ies
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nc
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ne
rg
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f c
fa
h
de
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t G
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ina
cin
at
ost

an
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urr
en
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g c
l
l p
lat
for
be
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he
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fi
le
d
low
f
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im
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t
st o

era
m
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r
m
pro
ve
ess
pr
o
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er
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l
ita
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p
de
liq
dit
hi
le o
fin
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int
ain
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ate
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ost

a
qu
y a
ny
e w
p
g
an
g c
s
Cu
nt
rre

2
5
5m
    • Gagfah integration one year ahead of schedule, with synergies and probability of achieving synergies so far higher than expected and costs to raise synergies lower than expected
  • Bottom-up analysis results in substantially higher synergies of c. €130m, vs. originally assumed €84m

Acquisition pipeline update

Acquisition Strategy

5

Acquisition market

Acquisition Strategy

Source: CBRE Marketview 2014, Savills Marktbericht Wohnungsportfolios Deutschland 2014

5

Source: CBRE Marketview 2015

External Growth through disciplinedprocess

Acquisition Strategy

Total return matrix

  • Value growth & return matrix to identify the most attractive markets
  • Assessment is based on proprietary scorecard which draws from our comprehensive data pool and our local expertise as the nation-wide owner and operator of residential real estate

Acquisition Criteria

5

Every potential acquisition is put to the test to see if it meets the four key criteria

+Strategic fit

  • Clear business strategy for sustainable, profitable growth
  • Promising operating and financial performance
  • Solid and innovative financing providing high degree of flexibility
  • Value enhancing and focused portfolio management
  • Innovative extension business with attractive growth potential
  • Successful and fast integration of acquisitions due to scalable business model

APPENDIX

Highlights H1 2015

Promising operational and financial performance

  • L-f-l Rent growth +2.7% yoy (€5.73)
  • Vacancy rate -0.3pp yoy (3.5%)
  • FFO1 per share +35.9% yoy (€0.74)
  • EPRA NAV per share +16.2% (€28.14) vs year-end 2014

Integration work on track

  • Platform efficiency evidenced by DeWAG and Vitus
  • GAGFAH integration ahead of plan
  • SÜDEWO transaction closed and funded

2015 guidance confirmed and specified

  • FFO1 per share +20-24% (€1.20-1.24)
  • EPRA NAV per share +19-24% (€27.50-28.50)
  • Recommended dividend per share of €0.94 (+27%)

LTV incl. SÜDEWO and rights issue of 50.0% close to mid-term target of <50%

KPI Definitions

i
i
D
t
e
s
c
r
p
o
n
l
l
C
i
t
a
c
u
a
o
n
F
F
O
1
lcu
lat
d a
he
fit
los
for
he
d a
dju
d
for
les
lat
d,
FFO
1 is
rio
s t
t
ste
ca
e
pr
o
or
s
pe
sa
-re
e
h o
lar
he
b
le,
ing
im
i
ite
. It
xim
ina
ate
s t
sta
no
n-r
ec
urr
, n
on
-ca
s
r s
ms
ap
pro
su
h
f
low
he
be
for
hy
bri
ing
tin
Gr
uit
d
to
t
nts
to
rec
urr
op
era
g c
as
ou
p
e p
ay
me
eq
y
d m
his
de
d o
he
ba
f a
fic
inv
ino
riti
T
FF
O1
is
mi
sis
i
est
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ter
n t
ors
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es.
no
ne
o
sp
ec
int
ati
l re
rtin
da
d
bu
t is
be
de
d a
lem
he
tan
to
t t
t
ern
on
a
po
g s
r
re
ga
r
s a
su
pp
en
o o
r
for
dic
de
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da
h I
he
ha
in
mi
it
FR
S. T
FF
O1
ato
ter
pe
r
ma
nce
rs
ne
n a
cco
r
nce
w
pe
r s
re
is c
lcu
lat
d o
he
ba
sis
f a
l
l o
din
div
i
de
d-
be
ari
ha
n t
uts
tan
a
e
o
g,
n
ng
s
res
fit
los
for
he
d a
dju
d
by
IFR
S p
rio
t
ste
ro
or
s
pe
the
ofit
los
s fr
les

pr
or
om
sa
eff
s fr
d f
the
hel
sal
ect
rty

om
pr
ope
or
e
cifi
ffe
wh
ich
do
late
th
od,
do
late
eri
ing
cts
t re
to
t re

spe
c e
no
e p
ar
e n
on-
rec
urr
or
no
of
the
ob
jec
tive
th
e C
to
om
pan
y
the
e f
fa
alu
dju
f in
t in
ir v
rtie
stm
ent
tm
ent

ne
com
rom
e a
s o
ves
pr
ope
s,
dep
iati
and
isat
ion
ort

rec
on
am
/
def
ed
and
(
e),
ior
inc
t ta
tax

err
pr
-ye
ar
cur
ren
xes
ex
pen
ses
om
ctio
tra
ost

nsa
n c
s
alt
and
ies
itm
int
nt
ent
st
pre
pay
me
pen
co
mm
ere

val
ef
fec
n fi
l in
ion
cia
uat
ts o
str
ent

nan
um
s
the
win
din
f d
isco
ing
fo
isio
rtic
ula
rly
sio
isio
unt
un
g o
r p
rov
ns,
pa
pen
n p
rov
ns

and
her
ior
int
ot
st e

pr
-ye
ar
ere
xpe
nse
s
inc
hat
is
of
a lo
e t
not
ter
atu

om
ng-
m n
re
E
P
R
A
N
A
V
V i
d a
n i
dic
f t
he
's
lon
uit
d i
EP
RA
NA
G
ato
ter
s u
se
s a
n
r o
rou
p
g-
m
eq
y a
n
s
lcu
lat
d a
din
's B
da
he
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d
EP
RA
Pr
ice
Re
tio
T
to
est
act
ste
ca
e
cco
r
g
co
mm
en
ns.
a
he
les
dw
l
l.
NA
V r
EP
RA
NA
V
i
ts
t
ep
res
en
s g
oo
(
lu
din
dw
l
l
),
Gr
ity
inc
i
ou
p e
qu
g g
oo
de
fer
d t
d a
he
l
d
for
le
ies
ert
ts
+
re
axe
s o
n p
rop
an
sse
sa
fai
f
fin
lue
de
riv
ati
cia
l in
str
ts
+
r v
a
o
ve
an
um
en
de
fer
d t
de
fin
l in
riv
ati
cia
str
ts
re
axe
s o
n
ve
an
um
en
-
L
T
V
he
ho
he
f n
de
bt
(ex
lu
din
hy
bri
d
)
lue
T
LT
V s
tio
ity
t
et
to
rty
ws
ra
o
c
g e
qu
pro
pe
va
(ex
)
-de
riv
ati
fin
cia
l
lia
bi
liti
lu
din
ity
hy
bri
d
+ N
on
ve
an
es
c
g e
qu
f
fec
Fo
rei
ts
gn
cu
rre
ncy
e
-
h a
d c
h e
iva
len
Ca
ts
s
n
as
qu
-
de
bt
= N
et
lue
f in
+ F
air
stm
t p
ert
va
o
ve
en
rop
y
lue
f tr
din
d a
he
l
d
for
le
+ F
air
ies
ert
ts
va
o
a
g p
rop
an
sse
sa
air
lue
f p
ies
d
by
he
G
+ F
ert
t
va
o
rop
us
e
rou
p
ir v
lue
= F
a
a

ConsolidationScope

G
D
A
I
G
D
W
A
e
V
i
t
u
s
G
G
A
F
A
H
F
i
r
a
n
c
o
n
a
Ü
S
O
D
E
W
H
1
2
0
1
4
6
h
t
m
o
n
s
3
h
t
m
o
n
s
- - - -
F
Y
2
0
1
4
h
1
2
t
m
o
n
s
h
9
t
m
o
n
s
h
3
t
m
o
n
s
- - -
H
1
2
0
1
5
h
6
t
m
o
n
s
h
6
t
m
o
n
s
h
6
t
m
o
n
s
h
4
t
m
o
n
s
h
3
t
m
o
n
s
-
G
F
Y
2
0
1
5
i
d
a
n
c
e
u
1
2
h
t
m
o
n
s
1
2
h
t
m
o
n
s
1
2
h
t
m
o
n
s
1
0
h
t
m
o
n
s
9
h
t
m
o
n
s
6
h
t
m
o
n
s

H1 2015 Key Figures

€m H
1
2
0
1
5
H
1
2
0
1
4
(
)
ha
C

ng
e
(
)
ha
%
C
ng
e
de
l
(
k
)
Re
i
ia
i
t
ts
s
n
un
3
4
8,
2
1
6
1
8
4,
6
8
2
1
6
3,
5
3
4
%
8
9
l
Re
inc
ta
n
om
e
6
2
8.
0
3
7
6.
7
2
5
1.
3
6
7
%
(
)
Va
%
te
ca
nc
y
ra
3.
5
3.
8
- -0
3p
p
/
h
ly
lac
(
l
ke
-fo
l
ke
)
M
in-
i
i

t
t
on
p
e r
en
sq
m
r-
,
5.
7
3
5.
5
8
0.
1
5
3
%
d
d
l
A
j
I
A
E
B
T
D
Re
te
ta
us
n
4
2
6.
6
2
3
6.
0
1
9
0.
6
8
1
%
/
d
d
l
(
)
A
j
E
B
I
T
D
A
Re
i

te
ta
t
us
n
un
1,
4
2
4
1,
3
1
7
1
0
0
7.
8
%
fro
d
l o
f p
Inc
isp
ies
t
om
e
m
os
a
ro
p
er
2
2
1.
4
1
3
8.
9
8
2.
5
5
9
%
d
d
les
A
j
E
B
I
T
D
A
Sa
te
us
1
9.
5
2
2.
4
-2
9
3
%
-1
d
j
d
A
E
B
I
T
D
A
te
us
6.
4
4
1
2
8.
5
4
1
8
7.
7
7
3
%
F
F
O
1
2
6
4.
3
1
3
0.
3
3
0
1
4.
0
3
%
1
O
2
F
F
2
8
3.
8
2.
1
5
7
1
3
1.
1
8
6
%
be
fo
F
F
O
1
in
te
re
m
a
na
nc
e
3
7
1.
4
1
9
9.
4
1
7
2.
0
%
8
6
A
F
F
O
2
2
4.
6
1
1
9.
5
1
0
5.
1
8
8
%
3
lue
ke
Fa
ir v
ies
t p
t
a
m
ar
ro
p
er
2
1,
2
9
9.
2
1
2,
7
5
9.
1
8,
5
4
0.
1
%
6
7
3
E
P
R
A
N
A
V
1
0,
0
8
7.
5
6,
5
7
8.
0
3,
5
0
9.
5
5
3
%
4
(
)
L
T
V
%
5
6.
4
4
9.
7
6.
7
%
1
3
/
ha
(
)
1
O

F
F
1
s
re
0.
7
4
0.
5
4
0.
2
0
3
7
%
/
2
ha
(
)
E
P
R
A
N
A
V

s
re
2
8.
1
4
2
4.
2
2
3.
9
2
%
1
6

Based on the number of shares as of the reporting date: 30.06.2015: 358.5m and 30.06.2014: 240.2m

2 NAV / share based on the number of outstanding shares as of the reporting date: 30.06.2015: 358.5m and 31.12.2014: 271.6m

3 30.06.2015 vs. 31.12.2014

4 LTV at 31.12.2014 adjusted for effects of capital measures

i
dg
d
j
d
Br
A
to
te
e
us
(
)
E
B
I
T
D
A
€m
H
1
2
0
1
5
H
1
2
0
1
4
ha
C
e (
ng
)
ha
C
e (
ng
)
%
fit
for
he
d
Pro
rio
t
pe
84
.9
70
.0
14
.9
21
%
lt
Ne
t in
ter
est
re
su
23
7.1
14
2.6
94
.5
66
%
Inc
e t
om
axe
s
59
.3
30
.6
28
.7
94
%
cia
tio
De
pre
n
4.8 3.4 1.4 41
%
fro
fai
lue
Ne
t in
co
me
m
r v
a
dju
f in
stm
ts
stm
t
a
en
o
ve
en
rtie
pro
pe
s
0.0 -20
.8
20
.8
-10
0%
EB
ITD
A I
FR
S
38
6.1
22
5.8
16
0.3
%
71
No
ing
ite
n-r
ec
urr
ms
60
.2
30
.7
29
.5
%
96
Pe
rio
d a
dju
stm
ts
en
-0.
2
1.9 -2.
1
-11
1%
d
jus
d E
A
BIT
DA
te
44
6.1
25
8.4
18
7.7
73
%
dju
d E
l
A
BIT
DA
Re
ste
nta
42
6.6
23
6.0
19
0.6
81
%
dju
d E
les
A
BIT
DA
Sa
ste
19
.5
22
.4
-2.
9
%
-13
(
)
l
Re
Se
€m
ta
t
n
g
m
en
H
1
2
0
1
5
H
1
2
0
1
4
Ch
e (
ang
€)
Ch
e (
ang
%)
be
f u
he
d
Av
nit
rio
r t
era
ge
nu
m
r o
s o
ve
pe
29
9,
58
0
17
9,
19
8
12
0,
38
2
%
67
l in
Re
nta
co
me
62
8.0
37
6.7
25
1.3
67
%
Ma
int
en
an
ce
-10
7.1
-69
.1
-38
.0
55
%
tin
Op
sts
era
g
co
-94
.3
-71
.6
-22
.7
32
%
d
jus
d E
l
A
te
BIT
DA
Re
nta
42
6.6
23
6.0
19
0.6
81
%
(
)
les
Sa
Se
€m
t
g
m
en
H
1
2
0
1
5
H
1
2
0
1
4
Ch
e (
ang
€)
Ch
e (
ang
%)
be
f
l
d
Nu
its
m
r o
un
so
4,
05
0
1,
89
2
2,
15
8
4%
11
fro
dis
l o
f p
Inc
ies
ert
om
e
m
po
sa
rop
22
1.4
13
8.9
82
.5
59
%
ing
f p
ies
l
d
Ca
nt
ert
rry
am
ou
o
rop
so
-20
4.8
-12
0.9
-83
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69
%
lua
f a
he
l
for
le
Re
tio
d
ts
va
n o
sse
sa
15
.2
11
.3
3.9 35
%
fit
dis
l
f p
(
)
Pro
ies
IFR
S
ert
on
po
sa
o
rop
31
.8
29
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2.5 9%
lua
(re
lize
d
) o
f a
he
l
d
for
le
Re
tio
ts
va
n
a
sse
sa
-15
.2
-11
.3
-3.
9
35
%
lua
fro
l o
f a
he
l
for
Re
tio
dis
d
ts
va
n
m
po
sa
sse
le
sa
15
.0
13
.2
1.8 %
14
dju
d p
fit
fro
dis
l o
f p
A
ies
ste
ert
ro
m
po
sa
rop
31
.6
31
.2
0.4 1%
l
ling
Se
sts
co
-12
.1
-8.
8
-3.
3
38
%
d
jus
d E
les
A
BIT
DA
Sa
te
19
.5
22
.4
-2.
9
-13
%
  • EBITDA increase driven by rental business
  • Adjusted EBITDA Rental reflects acquisitions as well as operational performance
  • Adjusted EBITDA Sales below previous year level: higher Non-Core sales volumes offset by lower Non-Core step-ups, also higher selling costs due to increased sales volumes

FFO

ls
Ac
tu
a
ha
C
ng
e
€m H1
2
0
15
H1
2
0
14
€m %
d
j
d
A
E
B
I
T
D
A
t
s
e
u
4
4
6.
1
2
5
8
4
8
1
7.
7
7
3
%
(
-)
I
F
F
O
t
t
n
e
e
s
e
p
e
n
s
e
r
x
-1
5
3.
1
-9
8
9
-5
4
2
5
5
%
(
-)
C
i
t
t
e
n
n
o
m
e
e
u
r
r
c
a
x
s
-9
2
-6
8
-2
4
3
5
%
(
)
F
F
O
2
=
2
8
3.
8
1
5
2.
7
3
1
1.
1
8
6
%
(
-)
d
d
l
A
j
E
B
I
T
D
A
S
t
s
e
a
e
s
u
-1
9
5
-2
2.
4
2.
9
3
%
-1
(
)
F
F
O
1
=
2
6
4
3
1
3
0
3
1
3
4
0
1
0
3
%
h
f
b
b
l
h
h
l
d
i
t
t
t
t
t
e
e
o
a
a
e
o
s
a
e
o
e
s
r
r
u
r
r
2
5
1.
5
1
3
0.
3
2
2
1
1.
9
3
%
h
f
b
b
l
h
b
d
i
i
i
i
t
t
t
t
t
t
t
e
e
o
a
a
e
o
e
q
n
e
s
o
s
r
r
u
u
y
y
r
v
r
1
2.
8
- - -
(
-)
l
d
C
i
i
i
t
t
a
p
a
e
m
a
n
e
n
a
n
c
e
z
-3
9
7
-1
0.
8
-2
8
9
2
6
8
%
(
)
O
A
F
F
=
2
2
6
4
9
1
1
5
0
1
5
1
8
8
%
(
)
l
d
C
i
i
i
t
t
+
a
p
a
e
m
a
n
e
n
a
n
c
e
z
3
9
7
0.
8
1
2
8
9
2
6
8
%
(
)
f
E
i
t
+
p
e
n
s
e
s
o
m
a
n
e
n
a
n
c
e
x
r
1
0
7.
1
6
9
1
3
8
0
%
5
5
(
)
O
l.
F
F
1
i
t
e
x
c
m
a
n
e
n
a
n
c
e
=
3
7
1.
4
9
9
1
4
1
7
2.
0
8
6
%

NAV

A
ls
tu
c
a
C
h
a
ng
e
€m Ju
ne
3
0,
2
0
15
be
De
ce
m
r
3
1,
2
0
14
€m %
Eq
i
i
bu
b
le
ha
ho
l
de
ty
t
tr
ta
to
u
a
s
re
rs
7,
5
2
3.
8
4,
9
3
2.
6
2,
5
9
1.
2
5
3
%
fe
d
/
fo
le
De
ta
in
tm
t p
ty
t
ie
rre
xe
s
on
ve
s
en
ro
p
er
p
ro
p
er
s
r s
a
2,
4
4
5.
5
8
0
1,
5
1.
8
6
4.
5
%
5
5
lu
f
de
f
l
1
Fa
ir
iv
iv
in
ia
in
t
tr
ts
va
e
o
r
a
e
an
c
s
um
en
1
5
8.
9
8
8.
1
7
0.
8
8
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
0.
-4
7
-2
3.
7
-1
0
7.
2
%
7
E
P
R
A
N
A
V
1
0,
0
8
7.
5
6,
5
7
8.
0
3,
5
0
9.
5
5
3
%
Go
dw
l
l
i
o
-2
2
9
2.
8
,
0
6.
0
-1
-2
1
8
6.
8
,
na
d
j
d
A
N
A
V
te
us
7,
7
9
4.
7
6,
4
7
2.
0
1,
3
2
2.
7
2
0
%
2
E
P
R
A
N
A
V
ha
(

)
p
er
s
re
2
8.
1
4
2
4.
2
2
3.
9
2
1
6
%
2
d
j
d
ha
(
)
A
N
A
V

te
er
re
us
p
s
2
1.
7
4
2
3.
8
3
0
9
-2
-9
%

Adjusted for effects from cross-currency swaps

2Based on number of shares outstanding as of respective reporting dates (31 Dec. 2014: 271.6m; 30 June 2015: 358.5m)

P&L

€m H1
20
15
H1
20
14
ha
(
)
C
€m
ng
e
ha
(
%
)
C
ng
e
Co
ts
m
m
en
Inco
fro
let
ting
erty
me
m p
rop
913
.8
542
.3
371
.5
68.
5
Inc
inly
isit
ion
late
d (
ide
ntia
l
rea
se
ma
ac
qu
-re
res
tal
inco
Ren
me
628
.0
376
.7
251
.3
66.
7
uni
48k
5k)
ddi
tion
ally
in-
lac
ts 3
18
nt o
vs
, a
p
e re
n a
like
-for
-lik
e b
asi
s in
d b
2.7
%
cre
ase
illar
Anc
sts
y co
285
.8
165
.6
120
.2
72.
6
y
fro
Oth
er i
erty
ent
nco
me
m p
rop
ma
nag
em
14.0 9.0 5.0 55.
6
Inc
inly
ref
lec
ts i
ed
tfol
io s
ize
rea
se
ma
ncr
eas
por
,
add
itio
nal
ly v
te d
ed
by
0.3
aca
ncy
ra
ecr
eas
pp
Inco
fro
erty
ent
me
m p
rop
ma
nag
em
927
.8
551
.3
376
.5
68.
3
fro
ale
of p
ies
Inco
ert
me
m s
rop
221
.4
138
.9
82.
5
59.
4
Slig
ht i
e d
to h
ig
her
No
n-C
Sa
les
ncr
eas
ue
ore
of
ld
Car
ryin
ties
unt
g a
mo
pro
per
so
-20
4.8
120
.9
-
83.
9
-
69.
4
vol
rtia
lly
offs
et b
low
No
n-C
St
um
es,
pa
y
er
ore
ep
ups
Rev
alu
atio
f as
s he
ld f
ale
set
n o
or s
15.
2
11.
3
3.9 34.
5
fit o
n d
ispo
sal
of p
ies
Pro
ert
rop
31.
8
29.
3
2.5 8.5 Inte
l qu
rly
iew
of
fair
lue
of
inv
arte
est
nt
rna
rev
va
me
ties
did
sul
t in
ign
ifica
han
t re
nt c
pro
per
no
an
y s
ges
e fr
fai
lue
adj
of i
Net
inc
ties
ust
nts
stm
ent
om
om
r va
me
nve
pro
per
0.0 20.
8
20.
8
-
100
-
ed
to 3
1 D
mb
er 2
014
com
par
ece
Cap
ital
ized
inte
l m
ode
rniz
atio
rna
n e
xpe
nse
s
65.
3
34.
2
31.
1
90.
9
Inc
refl
s la
rtfo
lio
siz
nd
in
ect
rea
se
rge
r po
e a
rcin
ffec
t of
raft
ani
ion
zat
sou
ou
r ow
n c
sm
en
Cos
t of
ials
ter
ma
-42
5.4
246
.4
-
179
.0
-
72.
6
g e
org
es f
ncil
lary
Exp
ts
ens
or a
cos
-27
9.1
160
.6
-
118
.5
-
73.
8
Inc
inly
isit
ion
late
d
rea
se
ma
ac
qu
-re
es f
Exp
aint
ens
or m
ena
nce
-10
9.2
61.
3
-
47.
9
-
78.
1
Ra
fro
m 3
283
5,
877
loy
lea
ds
to
to
mp
-up
em
p
ees
,
inc
sed
l ex
wh
ich
ima
rily
rea
rso
nne
ses
Oth
s of
rch
d g
ood
d se
rvic
ost
er c
pu
ase
s an
es
37.
1
-
24.
5
-
12.
6
-
51.
4
pe
pen
pr
ult
from
GA
GF
AH
r &
TG
S g
th
res
me
rge
row
nel
Per
son
ex
pen
ses
-13
8.1
87.
9
-
50.
2
-
57.
1
Inc
inly
du
e to
isit
ion
s (e
cia
lly
rea
se
ma
ac
qu
spe
iati
and
isat
ion
Dep
ort
rec
on
am
-4.8 3.4
-
1.4
-
41.
2
GA
GF
AH
) a
nd
inc
sed
ring
inc
e /
t
rea
re
cur
om
cos
reim
bur
ent
sem
s
Oth
atin
inco
er o
per
g
me
36.
9
19.
8
17.
1
86.
4
Oth
atin
er o
per
g e
xpe
nse
s
-11
3.2
74.
9
-
38.
3
-
51.
1
Inc
inly
late
d to
ad
diti
l ex
of
rea
se
ma
re
ona
pen
ses
uis
itio
ll a
ulti
and
dit
fee
Fina
ncia
l in
com
e
2.7 2.8 0.1
-
3.6
-
acq
ns
as
we
s c
ons
ng
au
s
for
GA
GF
AH
the
r ef
fec
ise
ts c
me
rge
r, o
om
pr
l ex
Fina
ncia
pen
ses
-23
8.8
145
.0
-
93.
8
-
64.
7
veh
icle
d tr
lling
wh
ich
inly
sts
an
ave
co
ma
inc
sed
du
ins
cin
e to
rea
our
g
Pro
fit b
efo
re t
ax
144
.2
100
.6
43.
6
43.
3
Inco
tax
me
-59
.3
30.
6
-
28.
7
-
93.
8
Str
ly
imp
ed
by
add
itio
nal
fin
ing
act
ong
anc
s a
s a
ult
of a
isit
ion
nd
by
ctio
s fo
tra
ost
res
cqu
s a
nsa
n c
r
Cur
inco
t
tax
ren
me
-7.9 4.9 12.
8
-
261
.2
-
GA
GF
AH
de
al f
ina
nci
ng
er (
fer
)
Oth
incl
. de
red
tax
-51
.4
35.
5
-
15.
9
-
44.
8
fit f
he
iod
Pro
or t
per
84.
9
70.
0
14.
9
21.
3

Berenberg & Goldman Sachs German Corporate Conference, Munich, 21 September 2015 Page 29

Modernizationand Maintenance

(
)
i
d
d
i
i
M

t
t
a
n
e
n
a
n
c
e
a
n
m
o
e
r
n
a
o
n
m
z
H
1
2
0
1
5
H
1
2
0
1
4
(
)
ha
C
€m
ng
e
(
)
ha
%
C
ng
e
in
M
te
a
na
nc
e e
xp
en
se
s
1
0
1
7.
6
9.
1
3
8.
0
5
5
%
i
l
ize
d m
in
Ca
ta
te
p
a
na
nc
e
4
0.
1
1
1.
0
2
9.
1
2
6
5
%
de
iza
ion
k
M
t
o
rn
w
or
1
1
8.
0
6
1.
4
5
6.
6
9
2
%
l c
f m
de
iza
io
d
in
To
ta
t o
t
te
os
o
rn
n a
n
m
a
na
nc
e
2
6
5.
2
1
4
1.
5
2
3.
1
7
8
%
7
he
f s
les
f o
f
's
T
isa
ion
tm
t
re
o
a
o
w
n c
ra
en
or
g
an
1
6
8.
8
7
8.
6
9
0.
2
%
1
1
5
he
f
bo
h
T
in
ice
t-
re
o
ug
se
rv
s
9
6.
4
6
2.
9
3
3.
5
5
3
%
de
d
/
(
)
iza
ion
in

M
t
te
o
rn
an
m
a
na
nc
e
sq
m
1
4.
1
5
1
2.
3
6
1.
7
9
1
4
%

Comments

Modernization programme mainly addressing investments in buildings or apartments regarding energy efficiency, senior living and highstandard refurbishments

Compared to 6M 2014, revenuesof in-house craftsmen organisation increased significantly due to successful TGS implementation and increased portfolio size

Maintenance and Modernization

Balance Sheet

€m Jun
30
20
15
,
De
c 3
1,
20
14
Co
ts
m
m
en
ties
Inve
stme
nt Pr
oper
21,1
96.5
12,6
87.2
Inc
driv
by
GA
GF
AH
isit
ion

8,
184
.8m
rea
se
en
ac
qu
Othe
ent a
ssets
r non
-curr
2,58
0.4
292.
8
ll a
s th
e "
Fra
nia
" ac
isit
ion

29
8.1
as
we
nco
qu
m
l non
Tota
ent a
ssets
-curr
23,7
76.9
12,9
80.0
GA
GF
Inc
inly
dr
ive
n b
AH
isit
ion
rea
se
ma
y
ac
qu
Cash
and
cash
ivale
nts
equ
313.
6
1,56
4.8
Pre
lim
ina
Go
odw
ill o
f €
2,
186
.8m
inc
lud
ed
Othe
r fina
ncial
ts
asse
1.4 2.0 ry
Othe
rent
ts
r cur
asse
309.
7
212.
4
De
ba
sic
ally
dr
ive
n b
ash
nsi
de
ion
GA
GF
AH

2,
022
.5m
rat
cre
ase
y c
co
l cur
Tota
rent
ts
asse
624.
7
1,77
9.2
l Ass
Tota
ets
24,4
01.6
14,7
59.2
l equ
tribu
table
A sh
Tota
ity at
to D
areh
olde
rs
7,52
3.8
4,93
2.6
tribu
table
to h
ybrid
Equi
ty at
capi
tal in
vest
ors
1,02
1.4
1,00
1.6
Ca
ital
inc
of

2,
783
.2m
inc
lud
ed
p
rea
se
rollin
Non-
cont
g int
ts
eres
185.
7
28.0
l equ
Tota
ity
8,73
0.9
5,96
2.2
Inc
of
olli
inte
t b
olid
atio
f G
AG
FA
H €
119
.2m
ntr
rea
se
non
co
ng
res
y c
ons
n o
Prov
ision
s
546.
4
422.
1
Trad
able
e pay
s
0.9 1.0
fina
Non
deriv
ative
ncial
liab
ilitie
s 12,2
03.9
6,53
9.5
Deriv
ative
fina
ncial
liab
ilitie
s
138.
0
54.5 Inc
driv
by
sol
ida
tion
of
GA
GF
AH
rea
se
en
con
,
from
fina
Liabi
lities
nce l
ease
s
98.8 88.1 ll a
s is
sui
EM
TN
Bo
nds
of

1.0
bn
as
we
ng
Liabi
lities
ollin
g int
to n
ontr
on-c
ts
eres
38.4 46.3
Othe
r liab
ilitie
s
35.9 8.6
Defe
rred
tax l
iabil
ities
1,62
4.9
1,13
2.8
Tota
l non
ent l
iabil
ities
-curr
14,6
87.2
8,29
2.9
Inc
ally
dr
ive
n b
GA
GF
AH
isit
ion

45
6.5
rea
se
ge
ner
y
ac
qu
m
Prov
ision
s
338.
5
211.
3
Trad
able
e pay
s
83.4 51.5
Non
deriv
ative
fina
ncial
liab
ilitie
s 266.
4
125.
3
Deriv
ative
fina
ncial
liab
ilitie
s
91.1 21.9
Liabi
lities
from
fina
nce l
ease
s
4.7 4.4
Liabi
lities
ollin
g int
to n
ontr
on-c
ts
eres
8.0 7.5
ax lia
biliti
Inco
me t
es
44.4 0.0
Othe
r liab
ilitie
s
147.
0
82.2
l cur
liab
ilitie
Tota
rent
s
983.
5
504.
1
l liab
ilitie
Tota
s
15,6
70.7
8,79
7.0
l equ
ity a
nd li
abili
ties
Tota
24,4
01.6
14,7
59.2

Berenberg & Goldman Sachs German Corporate Conference, Munich, 21 September 2015 Page 32

Goodwill

Ac
tu
ls
a
€m Ju
3
0,
2
0
15
ne
De
3
1,
2
0
14
c.
d
i
l
l
G
D
W
A
G
o
o
e
w
1
0
7
1
0
7
G
d
i
l
l
i
V
t
o
o
w
u
s
9
3
5
9
3
5
d
i
l
l
(
l
i
i
)
G
G
A
G
F
A
H
o
o
p
e
m
n
a
w
r
r
y
2,
1
8
6
8
-
l
G
d
i
l
l
(
f
i
d
)
T
t
t
t
o
a
o
o
w
a
s
o
r
e
p
o
r
n
g
a
e
2,
2
9
2
8
0
6
0
1
Ü
1
G
d
i
l
l
S
O
(
l
i
i
i
l
3
2
2
0
)
D
E
W
t
1.
1
1
5
o
o
w
p
r
e
m
n
a
r
y
u
n
3
0
4
a
p
p
r
o
x.
-

As per 8 July 2015; incl. deferred taxes of approx. €230m

GAGFAH Goodwill – Q2 development by PPA item

€m €m
l
i
i
d
i
l
l
h
P
G
M
3
1,
2
0
1
5
t
e
m
n
a
o
o
a
s
a
a
c
r
r
y
w
r
2,
2
0
3
4
(
S
0
)
I
t
t
t
i
I
A
4
n
v
e
s
m
e
n
p
r
o
p
e
r
e
s
-2
3
2.
1
P
l
d
i
(
I
A
S
1
6
)
t
t
t
r
o
p
e
r
y,
p
a
n
a
n
e
q
u
p
m
e
n
1.
4
+
l
l
b
f
l
b
l
(
)
M
t
i-
t-
t
i
t
i
t
i
t
i
V
B
L
u
e
m
p
o
y
e
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p
o
s
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e
r
e
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e
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e
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e
p
a
n
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g
a
o
n
2
6
7.
+
f
d
D
t
e
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e
a
e
s
r
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x
2
6
4
+
d
f
d
h
d
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f
d
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b
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i
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t
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Development of Unencumbrance Ratio

  • Unencumbrance ratio dropped from 50% pre GAGFAH down to 32% including GAGFAH
  • S&P provides up to 18 months (i.e. 30 Sept 2016) to reach 50% unencumbrance ratio

Evolution of average interest costs/interest rate sensitivity

  • Reduction of average interest costs since 2012, while extended and smoothened the maturity profile at the same time
  • Superior mix of secured and unsecuredrefinancing sources to reduce risk and maximise funding options
  • Included a €700m Hybrid with 4.6% coupon to our capital structure for the 2014 acquisitions instead of Convertibles, so that FFO dilution could be avoided

  • We will further optimise our capital structure as well as debt profile in terms of costs and maturity. Our focus is not purely on minimising the average interest costs. We also consider the optimal product mix, the overall economic benefit and the shareholder interests to support long term growth.

  • Next aim is to reduce the refinancing volume for 2018 quickly

Bonds / Rating

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ay

2015 Modernization Program on track

  • Three investment modules in 2015 delivering ~7% unlevered yield:
  • "Upgrade buildings" energetic building modernization
  • "Optimize apartments" vacant flat modernization
  • "New products" (e.g. bathroom)
  • 75 % of planned investment volume initiated and under construction
  • Bulk of "upgrade building" projectshas started as planned during Q2
  • "Optimize apartments" confirm expectations

German ResidentialBig and Safe Harbor

German resi market: important pillar of the German economy

  • Germany and its resilient economy provide a comparatively safe harbor for foreign investments
  • Due to its regulatory structure, the German residential rental market is largely immune to macro-economic fluctuations
  • With a GDP contribution of more than €430bn the German real estate industry represents almost 20% of Germany's GDP

Economic downturns do not impact rental growth

The net asset value of residential buildings is more than €4.2 trillion (valued at replacement costs)

Company rent growth: Since DA IPOed in 2013, the data up until and including 2011 relates to GAGFAH

German Resi – Favorable Fundamentals

4%10% 11% 12% 13% 15% 16% 16% 17% 20%23%

Continuous trend of migration to the cities

Dusseldorf

Berlin

Frankfurt

Hamburg

Leipzig

Dresden

Munich

Stuttgart

2%

Essen

Dortmund

Sources: Federal Statistics Office, IW Köln

Bremen

Cologne

German Resi – Unique Structure

15,4

ca. 3% oftotal rentalmarket

Peculiarities to German real estate market

  • Second lowest home-ownership ratio in Europe
  • Highly regulated rental market
  • Cultural mindset to not owe debt and to view buyinga home as a lifetime decision
  • Fragmented ownership structure
  • One of the few countries in the world with a sizeable listed residential market
  • Replacement costs are more than double the current valuation

Germany with second lowest homeownership ratio in Europe

…but still only a small share of the total rental market of ~24 million units

Tremendous growth in recent years…

Berenberg & Goldman Sachs German Corporate Conference, Munich, 21 September 2015 Page 44

What you can expect of our Q3 Reporting

We will…

  • … update you on 2016 modernization program incl. portfolio segmentation and drill-ownfor all recent acquisitions
  • … update you on 2015 disposal program
  • … update you on the expected 2015 valuation corridor
  • … update you on operational synergies (timing)
  • … give you guidance for FY 2016

… on 3 November 2015

IR Contact & Financial Calendar

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Aug 2 Interim report H1 2016

Nov 3 Interim report 9M 2016

Disclaimer

This presentation has been specifically prepared by Vonovia SE and/or its affiliates (together, "Vonovia") for internal use. Consequently, it may not be sufficient or appropriate for the purpose for which a third party might use it.

This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to any other person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein.

This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of Vonovia("forward-looking statements") which reflect various assumptions concerning anticipated results taken from DA's current business plan or from public sources which have not been independently verified or assessed by Vonovia and which may or may not prove to be correct. Any forward-looking statements reflect current expectations based on the current business plan and various other assumptions andinvolve 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 containedherein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the datehereof.

Tables and diagrams may include rounding effects.

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