Vonovia SE

Investor Presentation • May 12, 2016

Q1 2016 Earnings Call May 12, 2016 Rolf Buch, CEO Dr. A. Stefan Kirsten, CFO

Highlights

Strong performance in Q1 2016

• Industrialization effects achieved faster and better than originally anticipated
• In-place rent of €5.84 (+5.6% y-o-y). L-f-l rent growth of 2.9% y-o-y
• Adjusted EBITDA Operations¹ of €276.1m or €776 per unit (+6.4% y-o-y)
• FFO 1 of 186.3m or €0.40 per share (up 26% on a per-share basis)
• EPRA NAV per share of €30.15; adj. NAV per share of €24.32

Guidance Increase for 2016 based on Q1 operational excellence

• Rental income €1,520m €1,540m
• Vacancy rate ~2.7%
• FFO €720m €740m (€1.55 €1.59 per share; +21% y-o-y)
• DPS €1.05 (+12% y-o-y)

Investment Program 2016 rolled out and underway

• €430m €500m investment volume
• Program fully on track with €117m of projects already underway
• Increasing focus of new initiatives and space creation

¹ Adjusted EBITDA Operations = adj. EBITDA Rental + adj. EBITDA Extension + adj. EBITDA Other Q1 2015 per share data is TERP-adjusted

Proven Strategy Unchanged

	Reputation & Customer Satisfaction
al n o diti Tra	1	Property Mgmt. Strategy	Systematic optimization of operating performance and core business productivity Control of maintenance costs and release of capital for new property investments that offer greater potential
	2	Financing Strategy	Acquisition Ensure balanced structure and maturity of debt 5 capital, optimization of financing costs, credit Strategy rating and adequate liquidity at all times Fast and unfettered access to equity and debt capital markets
	3	Portfolio Mgmt. Strategy	Constant review of opportunities to lever scalable platform and Portfolio optimization by way of investments, generate economies of scale tactical acquisitions and sales All acquisitions must meet Purchase and sale decisions made on a stringent acquisition criteria sustainable basis through continuous review of portfolio in order to identify opportunities and risks
e v ati v o n n I	4	Extension Strategy	Expansion of core business to include customer oriented services that are closely related to and/or influence the rental business. Pursue further options for expanding the range of tenant services and initiatives that have the potential to grow the company's income.

All KPIs Improved

			Q1 2016	Q1 2015	Delta
	In-place rent	€/month/sqm	5.84	5.53	5.6%
	In-place rent l-f-l	€/month/sqm	5.76	5.60	2.9%
+6.4% per unit	L-f-l rent growth	%	2.9	2.6	+0.3pp
(€776 vs. €729)	Vacancy rate	%	2.8	3.4	-0.6pp
	Rental income	€m	392.0	263.6	48.7%
	Adj. EBITDA Operations	€m	276.1	182.5	51.3%
	of which Adj. EBITDA Rental	€m	269.0	177.1	51.9%
	of which Adj. EBITDA Extension	€m	7.6	5.5	38.2%
+11.1% per unit	of which Adj. EBITDA Other	€m	-0.5	-0.1	---
(€523 vs. €471)	FFO 1	€m	186.3	118.0	57.9%
	FFO 1 per share (eop NOSH)	€	0.40	0.32	26.1%
	FFO 1 per share (avg. NOSH)	€	0.40	0.38	5.2%
	AFFO	€m	171.7	99.7	72.2%
	Adj. EBITDA Sales	€m	35.0	9.5	---
	Adj. EBITDA (Total)	€m	311.1	192.0	62.0%
	FFO 2	€m	195.1	125.2	55.8%
+2.0% per sqm
(€1,075 vs. €1,054)			March 31, 2016	Dec. 31, 2015	Delta
	Fair value of real estate portfolio	€m	23,814.4	24,157.7	-1.4%
	EPRA NAV	€/share	30.15	30.02	0.4%
	Adj. EPRA NAV	€/share	24.32	24.19	0.5%
	LTV	%	45.8	46.9	-1.1pp

Q1 2015 per share data is TERP-adjusted

All per share numbers as per end of respective period: Q1 2016 = 466.0m; Q1 2015 = 354.1m shares

Q1 2016 Results │ May 12, 2016 Page 4

Growing Adj. EBITDA Operations

• Adjusted EBITDA Operations margin of 70.3% in Q1 2016, up from 69.2% in Q1 2015
• Excluding expensed repairs and maintenance and including the full platform costs, the adj. EBITDA margin was 85.2%

Maintenance Expense and Capitalized Maintenance vs. Modernization

• Reactive maintenance of €73.5m (€3.31 per sqm) in Q1 2016 with €58.6m for maintenance expense and €14.9m for capitalized maintenance
• Pro-active modernization investments of 51.9m (€2.34 per sqm) in Q1 2016 in the context of our 2016 modernization and investment program

€m	Q1 2016	Q1 2015	Delta	€/sqm	Q1 2016	Q1 2015	Delta
Expenses for maintenance	58.6	43.8	33.8%	Expenses for maintenance	2.64	2.78	-5.0%
Capitalized maintenance	14.9	18.5	-19.5%	Capitalized maintenance	0.67	1.18	-43.2%
Total	73.5	62.3	18.0%	Total	3.31	3.96	-16.4%
Modernization Investments	51.9	35.2	47.4%	Modernization investments	2.34	2.23	4.9%
Q1 2016 Results │ May 12, 2016				Page 6

Maintenance or Modernization?

	Illustrative Flow of Funds
	Rental Income
-	Maintenance Expense
-	Operating expenses ("Platform costs")
+	adj. EBITDA Extension and Other
=	Adj. EBITDA Operations
-	Interest
-	Current Income Tax Rental
=	FFO 1
-	Capitalized Maintenance
=	AFFO

MAINTENANCE

• Allocation between expensed maintenance and capitalized maintenance is a major swing factor in operating margin
• Regardless of the capitalization rate, however, both combined are largely governed by German Civil Code §558 and essentially protect future EBITDAs as they are reactive, non-discretionary measures.
• Represent what is required to broadly maintain the property value.

+ cash from sales, financing

Investments

Modernization & Space Creation

FFO per Share up 26% y-o-y

First-time disclosure of FFO attributable to minorities

€m (unless indicated otherwise)	Q1 2016	Q1 2015	Delta
Adj. EBITDA Operations	276.1	182.5	51.3%
FFO interest expense	-86.0	-63.2	36.1%
Current income tax (Operations)	-3.8	-1.3	192.3%
FFO 1	186.3	118.0	57.9%
of which attributable to shareholders	173.3	110.3	57.1%
of which attributable to hybrid investors	10.0	2.8	257.1%
of which attributable to minorities	3.0	4.9	-38.8%
Capitalized maintenance	-14.6	-18.3	-20.2%
AFFO	171.7	99.7	72.2%
Current income tax (Sales)	-26.2	-2.3	>100%
FFO 2	195.1	125.2	55.8%
FFO 1 € / share	0.40	0.32	26.1%
AFFO € / share	0.37	0.27	37.5%

Q1 2015 per share data is TERP-adjusted

Q1 2016 Results │ May 12, 2016 Page 8

EPRA NAV Broadly Unchanged - As Expected

No portfolio revaluation in Q1 (next portfolio valuation is at year end)

€m (unless indicated otherwise)	March 31, 2016	Dec. 31, 2015	Delta
Equity attributable to Vonovia's shareholders	10,628.4	10,620.5	0.1%
Deferred taxes on investment properties and assets held for sale	3,217.8	3,241.2	-0.7%
Fair value of derivative financial instruments 1	268.9	169.9	58.3%
Deferred taxes on derivative financial instruments	-66.9	-43.4	54.1%
EPRA NAV	14,048.2	13,988.2	0.4%
Goodwill	-2,716.6	-2,714.7	0.1%
Adj. EPRA NAV	11,331.6	11,273.5	0.5%
EPRA NAV €/share	30.15	30.02	0.4%
Adj. EPRA NAV €/share	24.32	24.19	0.5%

1 Adjusted for effects from cross currency swaps

Further LTV Reduction

• LTV of 45.8% as of Q1 2016
• Net debt is adjusted to fully include sales proceeds, the payments of which are received in a staggered form
• Fair value includes DW shares following their accounting in non-current assets

€m (unless indicated otherwise)	March 31, 2016	Dec. 31, 2015	Delta
Non-derivative financial liabilities	14,705.0	14,939.9	-1.6%
Foreign exchange rate effects	-140.4	-179.4	-21.7%
Cash and cash equivalents	-3,146.2	-3,107.9	1.2%
Net debt	11,418.4	11,652.6	-2.0%
Sales receivables	-295.3	-330.0	-10.5%
Additional loan amount for outstanding acquisitions	---	134.9	n/a
Adj. net debt	11,123.1	11,457.5	-2.9%
Fair value of real estate portfolio	23,814.4	24,157.7	-1.4%
Fair value of outstanding acquisitions	---	240.0	n/a
Shares in other real estate companies	460.6	13.7	>100%
Adj. fair value of real estate portfolio	24,275.0	24,411.4	-0.6%
LTV	45.8%	46.9%	-1.1pp

Maturity Profile Provides Opportunities

KPIs as of March 31, 2016
	Actual	Target
LTV	45.8%	mid- to <50% low forties
Unencumbered assets in %	40%	≥ 50%
Fixed/hedged rate debt ratio	98%
Global ICR (YTD)	3.6x	Ongoing
Financing Cost	2.6%	optimisation with most economic
Weighted avg. Term	6.0 yrs	funding

Deutsche Wohnen Participation Profitable

Accounting treatment:

• Deutsche Wohnen shares are accounted for under "available for-sale securities" in IFRS (in non-current assets)
• Initial inclusion at purchase cost of €405.5 million
• Accounting on a mark-to-market basis, with adjustments to fair market value accounted for in "other comprehensive income"

LTV treatment

Included with market value in LTV denominator

FFO interest expense treatment

FFO interest expense includes interest expense for share purchase (€~6m) and would include any dividend payments (€~9.1m¹)

Vonovia stake as per March 31, 2016
# shares	16.8m
Avg. purchase price per share	€24.10
Market value	€460.6m
Value mark-up	€55.7m
Premium vs purchase	13.7%

¹ Based on current 2015 DPS guidance by Deutsche Wohnen

Strong Start into 2016 Prompts Guidance Increase

	FY 2015 actuals	Guidance 2016 old	Guidance 2016 new
L-f-l rental growth	2.9%	2.8-3.0%	2.8-3.0%
Vacancy	2.7%	~3%	~2.7%
Rental Income	€1,415m	€1,500-1,520m	€1,520-1,540m
FFO1	€608m	€690-710m	€720-740
FFO1/share (eop NOSH)	€1.30	€1.48-1.52	€1.55-1.59
EPRA NAV/share	€30.02	€30-31	€30-31
Adj. NAV/share	€24.19	€24-25	€24-25
Maintenance	€331m	~€330m	~€330m
Modernization	€356m	€430-500m	€430-500m
Privatization (#)	2,979	~2,400	~2,400
FMV step-up (Privatization)	30.5%	~30%	~30%
Non-core (#)	12,195	opportunistic	opportunistic
FMV step-up (Non-Core)	9.2%	~0%	~0%
Dividend/share	€0.941	~70% of FFO 1	€1.05 (+12% y-o-y)

¹As proposed to the AGM

Capital Markets Day 2016

Agenda:

June 6

• Noon: Lunch and Management Presentation
• 14:00 17:30 Round tables on
• Extension / Product Management
• Modernization
• Space Creation / Innovation
• 18:30 Tour of "Zeche Zollverein"
• 20:00 Reception and dinner at the "Casino" Restaurant on "Zeche Zollverein"
• June 7
• 9:00 Presentation "Eltingviertel"
• 10:15 13:00 Transfer to and tour of "Eltingviertel"
• Shuttle busses to Düsseldorf airport and Essen main train station (3 ½ hour high speed train connection to Berlin)

Venues

• Atlantic Hotel, Norbertstr. 2a, 45131 Essen (June 6 lunch, presentations and accommodation)
• Zeche Zollverein one of the Ruhr Valley's largest former coal mines and a UNESCO World Cultural Heritage
• Eltingviertel Vonovia's comprehensive neighborhood development project

Background	• While a large amount of investor views have been collected over time, the feedback received in the context of conferences and roadshows tends to be largely event driven and "tainted" by the dominating event at that time. • Comprehensive quality feedback on multiple aspects of the business in a structured format has not been obtained so far. • After the rapid development since IPO, the high level of activity in recent months etc., this is an adequate time for a perception study.
Objective	• Obtain high-quality, meaningful feedback from the investment community as to how Vonovia is perceived in the capital markets. • Make adjustments to the investor relations activities and capital markets communication based on the findings to establish a best-in-class IR organization.

Partner

• Makinson Cowell, subsidiary of KPMG, is a highly reputable and well-experienced capital markets advisory firm for a large variety of investor relations-related services and particularly experienced in perception studies
• This perception study is a high-priority project for Vonovia.
• It is our first perception study and we expect to do this in regular intervals going forward.
• We highly appreciate your cooperation if you are contacted for an interview.

Action-driven Portfolio Clustering

• More than 50% of current portfolio in Upgrade Buildings and Optimize Apartments cluster offer significant investment potential for sustainable organic growth
• KPIs of Strategic Clusters underline strength of Vonovia's core portfolio

March 31, 2016	Residential Units	In-place rent	New letting rent	Vacancy Rate	Fair value	Fair value	Multiple
		(€/sqm)	(€/sqm)	(%)	(€bn)	(€/sqm)	(in-place rent)
Operate	125,556	5.92	6.44	2.4	8.7	1,063	14.8
Upgrade buildings	102,752	5.81	6.63	2.3	6.9	1,094	15.8
Optimize apartments	73,413	6.08	7.15	2.2	5.7	1,207	16.9
Subtotal Strategic Clusters	301,721	5.93	6.64	2.3	21.3	1,108	15.7
Non-strategic	13,570	4.74	4.72	6.8	0.5	589	11.0
Privatize	18,819	5.85	6.51	4.5	1.5	1,165	17.0
Non-core	9,857	4.50	4.84	10.0	0.3	518	10.8
Total	343,967	5.84	6.46	2.8	23.7	1,075	15.5

Sales Program Fully on Track

• Q1 2016 sales mostly related to the LEG portfolio sale announced in Q4 2015
• Excluding sale to LEG, Q1 sales results were in line with previous year

€m (unless indicated otherwise)	Q1 2016	Q1 2015	Q1 2016	Q1 2015	Q1 2016	Q1 2015
	Privatization		Non-core/Non-strategic		Total
No. of units sold	890	553	14,661	1,936	15,551	2,489
Income from disposal	73.8	51.4	616.7	71.6	690.5	123.0
Fair value of disposal	-56.4	-37.6	-594.3	-71.0	-650.7	-108.6
Adj. profit from disposal	17.4	13.8	22.4	0.6	39.8	14.4
Fair value step-up (%)	30.9%	36.7%	3.8%	0.8%

Selling costs	-4.8	-4.9
Adj. EBITDA Sales	35.0	9.5

• Yield commitment for 2015 Investment Program unchanged
• 2016 Investment Program fully on track: Projects with a combined volume of €117m already underway
• Growing contribution from new initiatives (e.g. heating system upgrades, bathrooms)
• Significant increase of new initiatives and space creation volumes (guidance depends on timely granting of construction permits)
• Modernization segments represent 50% of total fair value

Innovation As Internal Growth Driver

Acquisition Opportunities - Pipeline Update

Acquisitions Pipeline as per March 31, 2016; number of units

• Operational excellence continues in 2016
• Guidance increase demonstrates strength of underlying business
• Proven strategy is increasingly paying off
• Investments and innovation as main value drivers for growth

IR Contact & Financial Calendar

Rene Hoffmann Head of Investor Relations Vonovia SE Philippstr. 3 44803 Bochum Germany

+49 234 314 1629 rene.hoffmann@vonovia.de investorrelations@vonovia.de www.vonovia.de

Contact		Financial Calendar 2016
	May 12	Interim report Q1 2016
	May 12	Annual General Meeting, Düsseldorf
	May 23	Management Roadshow, London
	May 24	Management Roadshow, Frankfurt
	May 25	Kempen European Property Seminar, Amsterdam
	June 1	Kepler Cheuvreux German Property Day, Paris
	June 6 - 7	Vonovia Capital Markets Day, Essen
	June 9	Deutsche Bank GSA Conference, Berlin
	June 20 - 23	EPRA Asia Roadshow
	Aug 2	Interim report H1 2016
	September 14	BAML Global Real Estate Conference, NYC
	September 19	Berenberg / Goldman Sachs German Corporate Conference 2016, Munich
	September 20	Baader Investment Conference, Munich
	November 30	UBS Global Real Estate CEO / CFO Conference, London
	December 1	Berenberg European Conference, Pennyhill
	Nov 3	Interim report 9M 2016

APPENDIX

Strong Track Record Across All KPIs

¹ Before yield compression; ² Pro forma and adjusted for portfolio sale to LEG

EBITDA

Bridge to Adjusted EBITDA (€m)	Q1 2016	Q1 2015	Change (%)
Profit for the period	79.2	30.3	161.4
Net interest result	131.3	98.1	33.8
Income taxes	42.8	22.8	87.7
Depreciation	4.4	2.0	120.0
Net income from fair value adjustments of investment properties	NA	NA	NA
EBITDA IFRS	257.7	153.2	68.2
Non-recurring items	26.7	38.9	-31.4
Total period adjustments from assets held for sale	26.7	-0.1	na
Adjusted EBITDA	311.1	192.0	62.0
Adjusted EBITDA Sales	-35.0	-9.5	268.4
Adjusted EBITDA Other	0.5	0.1	400.0
Adjusted EBITDA Extension	-7.6	-5.5	38.2
= Adjusted EBITDA Rental	269.0	177.1	51.9
Adjusted EBITDA Extension	7.6	5.5	38.2
Adjusted EBITDA Other	-0.5	-0.1	400.0
Interest expense FFO	-86.0	-63.2	36.1
Current income taxes FFO 1*	-3.8	-1.3	192.3
=FFO 1	186.3	118.0	57.9
Capitalised maintenance	-14.6	-18.3	-20.2
= AFFO	171.7	99.7	72.2
Current income taxes Sales*	-26.2	-2.3	na
FFO 2 (FFO incl. Adjusted EBITDA Sales/current income taxes sales)	195.1	125.2	55.8
FFO 1 per share in €**	0.40	0.32	26.1
AFFO per share in €**	0.37	0.27	37.5
Number of shares	466,001	354,106	31.6

• EBITDA increase mainly driven by rental business
• Adjusted EBITDA Rental reflects acquisitions as well as operational performance
• The increase of the adjusted EBITDA Extension reflects our expansion strategy to the extent they are not accounted for under rental income
• Increase of adjusted EBITDA Sales mainly due to higher Non-core sales volume and higher Non-core step-ups

Q1 2016 Results │ May 12, 2016 Page 25

€m	Q1 2016	Q1 2015	Change (%)
Income from property letting	556.6	380.9	46.1
Other income from property management	9.3	5.9	57.6
Income from property management	565.9	386.8	46.3
Income from disposal of properties	690.5	123.0	461.4
Carrying amount of properties sold	-683.0	-115.8	489.8
Revaluation of assets held for sale	5.6	7.3	-23.3
Profit on disposal of properties	13.1	14.5	-9.7
Net income from fair value adjustments of investment properties	na	na	na
Capitalized internal expenses	49.4	26.5	86.4
Cost of materials	-244.1	-171.8	42.1
Personnel expenses	-92.9	-60.7	53.0
Depreciation and amortisation	-4.4	-2.0	120.0
Other operating income	23.6	19.8	19.2
Other operating expenses	-57.3	-61.9	-7.4
Financial income	9.5	0.7	na
Financial expenses	-140.8	-98.8	42.5
Earnings before tax	122.0	53.1	129.8
Income taxes	-42.8	-22.8	87.7
Profit for the period	79.2	30.3	161.4
Attributable to:
Vonovia's shareholders	56.5	19.6	188.3
Vonovia's hybrid capital investors	7.4	7.4	0.0
Non-controlling interests	15.3	3.3	363.6
Earnings per share (basis and diluted) in €	0.12	0.06	92.1

Balance Sheet (1/2)

€m	Mar 31, 2016	Dec 31, 2015	Change (%)
Intangible Assets	2,741.3	2,724.0	0.6
Property, plant and equipment	76.4	70.7	8.1
Investment properties	23,720.6	23,431.3	1.2
Financial assets	630.1	221.7	184.2
Other assets	27.4	158.5	-82.7
Income tax receivables	0.1	0.1	0.0
Deferred tax assets	72.3	72.3	0.0
Total non-current assets	27,268.2	26,678.6	2.2
Inventories	3.8	3.8	0.0
Trade receivables	319.6	352.2	-9.3
Financial assets	2.0	2.0	0.0
Other assets	160.0	113.4	41.1
Income tax receivables	20.8	23.1	-10.0
Cash and cash equivalents	3,146.2	3,107.9	1.2
Assets held for sale	51.2	678.1	-92.4
Total current assets	3,703.6	4,280.5	-13.5
Total assets	30,971.8	30.959.1	0.0

Balance Sheet (2/2)

€m	Mar 31, 2016	Dec 31, 2015	Change (%)
Subscribed capital	466.0	466.0	0.0
Capital reserves	5,892.5	5,892.5	0.0
Retained earnings	4,346.0	4,309.9	0.8
Other reserves	-76.1	-47.9	58.9
Total equity attributable to Vonovia's shareholders	10,628.4	10,620.5	0.1
Equity attributable to hybrid capital investors	1,011.5	1,001.6	1.0
Total equity attributable to Vonovia's shareholders and hybrid capital investors	11,639.9	11,622.1	0.2
Non-controlling interests	258.5	244.8	5.6
Total equity	11,898.4	11,866.9	0.3
Provisions	647.2	612.9	5.6
Trade payables	0.8	0.9	-11.1
Non-derivative financial liabilities	13,334.1	13,951.3	-4.4
Derivatives	239.3	144.5	65.6
Liabilities from finance leases	94.9	94.9	0.0
Liabilities to non-controlling interests	39.0	46.3	-15.8
Other liabilities	27.6	25.9	6.6
Deferred tax liabilities	2,546.9	2,528.3	0.6
Total non-current liabilities	16,926.8	17,405.0	-2.7
Provisions	419.9	429.5	-2.2
Trade payables	85.3	91.6	-6.9
Non-derivative financial liabilities	1,370.9	988.6	38.7
Derivatives	61.5	58.8	4.6
Liabilities from finance leases	4.6	4.4	4.5
Liabilities to non-controlling interests	17.5	9.8	78.6
Other liabilities	186.9	104.5	78.9
Total current liabilities	2,146.6	1,687.2	27.2
Total liabilities	19,073.4	19,092.2	-0.1
Total equity and liabilities	30,971.8	30,959.1	0.0

Including negative effects from cash flow hedges in the amount of € 64.3 million. On the other hand, equity increased by € 36.1 million after deferred taxes due to the book gains associated with the acquired shares in Deutsche Wohnen.

Valuation effect as a result of the development of the underlying interest rates

The decrease of the current and non-current financial liabilities is mainly explained by an unscheduled repayment of a structured loan with AXA (€ 155 million)

Bonds / Rating

Corporate Investment grade rating as of 2015-09-30
Rating agency	Rating	Outlook	Last Update
Standard & Poor's	BBB+	Stable	11. Feb 16

Bond ratings as of 2015-09-30

	Amount	Issue price	Coupon	Final Maturity Date	Rating
3 years 2.125%
Euro Bond	€ 700m	99.793%	2.125%	25 July 2016	BBB+
6 years 3.125%
Euro Bond	€ 600m	99.935%	3.125%	25 July 2019	BBB+
4 years 3.200%			3.200%
Yankee Bond	USD 750m	100.000%	(2.970%)*	2 Oct 2017	BBB+
10 years 5.000%			5.000%
Yankee Bond	USD 250m	98.993%	(4.580%)*	2 Oct 2023	BBB+
8 years 3.625%
EMTN (Series No. 1)	€ 500m	99.843%	3.625%	8 Oct 2021	BBB+
60 years 4.625%
Hybrid Bond	€ 700m	99.782%	4.625%	8 Apr 2074	BBB-
8 years 2.125%
EMTN (Series No. 2)	€ 500m	99.412%	2.125%	9 July 2022	BBB+
perpetual 4%
Hybrid Bond	€ 1,000m	100.000%	4.000%	perpetual	BBB-
5 years 0.875%
EMTN (Series No. 3)	€ 500m	99.263%	0.875%	30 Mar 2020	BBB+
10 years 1.500%
EMTN (Series No. 4)	€ 500m	98.455%	1.500%	31 Mar 2025	BBB+
2 years 0.950%+3M EURIBOR			0.950%+3M EURIBOR
EMTN (Series No. 5)	€ 750m	100.000%	(0.835% hedged)	15 Dec 2017	BBB+
5 years 1.625%
EMTN (Series No. 6)	€ 1,250m	99.852%	1.625%	15 Dec 2020	BBB+
8 years 2.250%
EMTN (Series No. 7)	€ 1,000m	99.085%	2.250%	15 Dec 2023	BBB+

* EUR-equivalent re-offer yield

Bond and Rating KPIs as per March 31, 2016

Bond KPIs	Covenant	Level	Actual
	LTV
	Total Debt / Total Assets	<60%	47%
	Secured LTV	<45%	22%
	Secured Debt / Total Assets
	ICR LTM1 EBITDA / LTM Interest Expense	>1.80x	3.17x
	Unencumbered Assets
	Unencumbered Assets / Unsecured Debt	>125%	214%

Rating KPIs	Covenant	Level (BBB+)
	Debt to Capital
	Total Debt / Total Equity + Total Debt	<60%
	ICR
	LTM1 EBITDA / LTM Interest Expense	>1.80x

¹ LTM = last 12 months

Name	Amount	Coupon	Contractual Maturity Date
German Residential Funding 2013-1 Limited	€ 1,845m	2.80%	27 Aug 2018
German Residential Funding 2013-2 Limited	€ 658 m	2.69%	27 Nov 2018
Taurus 2013 (GMF1) PLC	€ 1,029 m	3.35%	21 May 2018

Expected prepayment fees for early CMBS redemption (€ m)
IPD	GRF-1	GRF-2	WOBA
May 2016	64.9	24.1	14.6
Aug 2016	26.3	21.0	10.6
Nov 2016	19.2	9.5	6.7
Feb 2017	12.5	7.2	2.8
May 2017	6.1	5.0	1.4
Aug 2017	2.8	2.7	0.1
Nov 2017	0.6	1.1	0.0
Feb 2018	0.0	0.4	0.0
May 2018	0.0	0.0	0.0
Aug 2018	0.0	0.0	na
Nov 2018	na	0.0	na

Hedge break costs not considered.

Values may differ in case of deviation from sales plan.

Portfolio KPIs by Top 25 Cities

City	Residential units	In-place rent (€/sqm)	New letting rent (€/sqm)	Vacancy rate March 31, 2016	Vacancy rate March 31, 2015	Share rent controlled
Dresden	37,898	5.33	6.05	2.6%	2.9%	0.0%
Berlin	30,517	5.87	7.31	1.6%	1.4%	8.7%
Dortmund	19,432	5.11	5.80	2.5%	2.7%	14.0%
Essen	12,092	5.39	5.62	4.4%	5.0%	15.1%
Kiel	11,976	5.37	5.94	1.5%	1.4%	32.3%
Frankfurt am Main	11,693	7.75	9.53	0.8%	1.1%	12.8%
Bremen	11,272	5.17	5.61	3.7%	4.3%	23.2%
Hamburg	10,970	6.50	8.19	1.2%	0.9%	15.5%
Bochum	7,519	5.44	5.88	2.2%	2.6%	9.4%
Hannover	7,206	6.05	6.63	1.7%	2.6%	22.0%
Köln	6,407	7.13	8.17	1.3%	1.7%	10.3%
Duisburg	5,536	5.20	5.52	4.1%	5.3%	3.4%
München	5,483	7.15	11.26	0.8%	0.9%	40.6%
Bonn	5,174	6.45	7.13	1.6%	2.1%	25.8%
Stuttgart	4,643	8.13	9.77	1.4%	0.9%	24.9%
Bielefeld	4,637	5.04	5.60	2.7%	2.6%	34.1%
Heidenheim an der Brenz	3,958	6.04	6.39	4.7%	5.8%	8.9%
Osnabrück	3,915	5.53	6.12	3.5%	3.9%	17.2%
Gelsenkirchen	3,887	4.89	5.17	5.4%	6.9%	7.5%
Düsseldorf	3,540	7.31	8.31	2.7%	2.3%	19.6%
Braunschweig	3,495	5.51	6.07	1.3%	0.5%	0.3%
Gladbeck	3,136	5.14	5.64	3.1%	3.0%	9.1%
Zwickau	3,106	4.26	3.84	9.6%	12.0%	0.0%
Herne	2,910	5.09	5.84	2.9%	4.3%	6.3%
Mannheim	2,748	6.63	7.54	3.4%	2.9%	9.8%
Subtotal TOP 25	223,150	5.83	6.50	2.5%	2.9%	13.0%
Remaining Cities	120,817	5.85	6.39	3.5%	4.5%	14.1%
Total	343,967	5.84	6.46	2.8%	3.4%	13.4%

Note: Residential portfolio only

Valuation KPIs by Top 25 Cities

City	Fair value (€m)	Share in terms of FV	Fair Value (€/sqm)	Annualized in place rent	Multiple (in-place rent)
				(€m) March 31,2016
Dresden	2,104	8.9%	924	143.7	14.6
Berlin	2,564	10.8%	1,302	138.9	18.5
Dortmund	973	4.1%	811	72.9	13.3
Essen	629	2.7%	805	49.4	12.7
Kiel	614	2.6%	846	46.7	13.1
Frankfurt am Main	1,220	5.1%	1,674	68.2	17.9
Bremen	637	2.7%	903	42.9	14.8
Hamburg	1,049	4.4%	1,464	56.8	18.5
Bochum	351	1.5%	806	28.1	12.5
Hannover	509	2.1%	1,079	34.4	14.8
Köln	718	3.0%	1,561	39.3	18.3
Duisburg	255	1.1%	738	21.3	12.0
München	881	3.7%	2,354	33.5	26.3
Bonn	504	2.1%	1,372	28.2	17.8
Stuttgart	566	2.4%	1,876	29.2	19.4
Bielefeld	220	0.9%	709	18.5	11.9
Heidenheim an der Brenz	228	1.0%	926	17.5	13.0
Osnabrück	225	0.9%	891	16.4	13.7
Gelsenkirchen	166	0.7%	640	14.3	11.6
Düsseldorf	398	1.7%	1,604	22.2	17.9
Braunschweig	201	0.8%	929	14.2	14.1
Gladbeck	145	0.6%	751	11.8	12.3
Zwickau	71	0.3%	399	8.1	8.7
Herne	143	0.6%	774	11.3	12.7
Mannheim	227	1.0%	1,221	14.7	15.5
Subtotal TOP 25	15,597	65.8%	1,104	982.5	15.9
Remaining Cities	8,100	34.2%	1,023	545.9	14.8
Total	23,698	100.0%	1,075	1,528.4	15.5

	Q1 2016 /	Q1 2015 /
	March 31, 2016	March 31, 2015
Headcount	6,683	5,737
Number of units under 3rd-party management	54,364	42,083
EPRA vacancy rate	2.6%	3.2%
IFRS profit for the period	79.2	30.3
Number of units acquired	2,417	144,602
Number of units sold	15,551	2,489

FFO by Segments

Interest /Tax Q1 2016 Q1 2015
-86.0 -63.2 Interest
-3.8 -1.3 Tax
-26.2 -2.2 Tax Sales

in €m	EBITDA Q1 2016	Carrying Amount	Interest	EBT	Tax	FFO Q1 2016
Rental	269.0	22,842.6	-84.7	184.3	-3.7	180.6
Extension	7.6	350.9	-1.3	6.3	-0.1	6.2
Other	-0.5	-	-	-0.5	0.0	-0.5
FFO I	276.1	23,193.5	-86.0	190.1	-3.8	186.3
Sales	35.0	-	-	35.0	-26.2	8.8
FFO II	311.1	23,193.5	-86.0	225.1	-30.0	195.1

in €m	EBITDA Q1 2015	Carrying Amount	Interest	EBT	Tax	FFO Q1 2015
Rental	177.1	22,842.6	-62.2	114.9	-1.3	113.6
Extension	5.5	350.9	-1.0	4.5	-0.1	4.5
Other	-0.1	-	-	-0.1	0.0	-0.1
FFO I	182.5	23,193.5	-63.2	119.3	-1.3	118.0
Sales	9.5	-	-	9.5	-2.2	7.2
FFO II	192.0	23,193.5	-63.2	128.8	-3.6	125.2

FFO Minorities

• Up until and including the fiscal year 2015, Vonovia did not disclose an amount attributable to minority shareholders.
• Defined by the absolute € million amount, minorities are comparatively small in relation to the FFO 1 figure and can paid out of the ~30% of FFO 1 that is not distributed to equity shareholders in the form of dividends.
• At the same time, we appreciate the market's desire for more transparency, which is why starting in Q1 2016 and going forward, Vonovia discloses the line item "FFO minorites" in the FFO 1 allocation.
• The FFO minorities include all dividend payments to minorities (mainly B&O, a Gagfah legacy fund structure, Gagfah S.A. minorities).
• Fees received by co-investors and similar entities are not part of the FFO attributable to minorities. Vonovia has accounted for and will continue to account for these fees in Other Operating Expenses and hence already in EBITDA. The only exception is the fee paid to J.P.Morgan who hold a Gagfah stake that is treated as a one off.
• For comparability purposes, in 2015, the FFO attributable to minorities was €19.5m, partly driven by the Gagfah dividend paid in 2015.

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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 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.

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Tables and diagrams may include rounding effects.