Vonovia Se · XETR:VNA
Vonovia — Investor Day (September 2022)
18 slides from Vonovia's investor day presentation, Sep 27, 2022
Slide 1: Capital Markets Day Management Presentation
Capital Markets Day Management Presentation September 27, 2022
Slide 2: Agenda
Agenda 1. What (Not) to Do In This Environment 2. Impact from Increasing Energy Prices 3. Vonovia CMD 2022
Slide 3: What We See When We Look at Our Business
What We See When We Look at Our Business The Fundamentals, the Environment, and Our Business Remain Stable and Strong Rent growth 2022ytd Mietspiegels suggest increasing momentum Vacancy rate At record low Bad debt At record low DW integration On track for completion by 01/2023 Liquidity Unfettered
Slide 4: But Capital Markets Are Expecting the Worst
But Capital Markets Are Expecting the Worst Rapidly Increasing Fear that We Are Entering A Catastrophic Scenario The changed macro environment has caused fear that tectonic shifts must happen, primarily around • Increased bund yields: asset yields must widen. • Inflation: cost base must be growing s
Slide 5: Main Arguments for Our Confidence In Asset Values
Main Arguments for Our Confidence In Asset Values 50+ years market data Market data of the last 50+ years during which German house prices showed no material weakness evidence (decline in real prices around turn of millennium coincided with almost double-digit vacancy rates). Correlation with There
Slide 6: It Boils Down to Two Fundamentally Different Views
It Boils Down to Two Fundamentally Different Views… “All real estate is cyclical” “German resi is different” House price and construction price indices (2015=100)2 180 160 Strong correlation between 140 prices for new constructions 120 and existing buildings 100 Enthusiasm Panic 80 60 40 20 0 1970 1
Slide 7: …that Lead to Extremely Different Conclusions
…that Lead to Extremely Different Conclusions “All real estate is cyclical” “German resi is different” “No storm clouds on the horizon” “Make company weatherproof for the big storm” Ensure company’s survival through Leverage unfettered access to debt financing Game Plan Put all efforts into fast-pac
Slide 8: Of Course, the World Is Not Entirely Black & White
Of Course, the World Is Not Entirely Black & White That Is Why We Have Implemented and Initiated Various Actions to Adapt to this Environment Reminder: Immediate actions we have taken Update: Progress since H1 2022 Investment program put on fully organic Assets identified for sale (MFH & non-core) a
Slide 9: Our Conclusion
Our Conclusion We Are Aware of the Equity Capital Market’s Concerns; But We Have Conviction on What (Not) to Do What not to do What to do • Be pressured into taking action for the sake of taking action • Keep eyes on the market but act from position of strength • Define timelines for disposals • Kee
Slide 10: Agenda
Agenda 1. What (Not) to Do In This Environment 2. Impact from Increasing Energy Prices 3. Vonovia CMD 2022
Slide 11: Illustrative Payment Flows and Prepayment Mechanics
Illustrative Payment Flows and Prepayment Mechanics Simplified payment flows1 • At the beginning of each month, Vonovia withdraws by way of direct Energy debit from tenants’ accounts one contractually agreed lump sum. The Tenant provider tenant has the legal obligation to make all payments in full.
Slide 12: What If A Tenant Doesn’t Pay?
What If A Tenant Doesn’t Pay? Sequence of Escalating Events Safeguards High Collection Rate; Eviction Only As Measure of Last Resort In case a tenant is in default on any of the contractually agreed payments (rent, heating, ancillaries), a sequence of escalating events is Contact tenant initiated wi
Slide 13: Relief Package of German Government
Relief Package of German Government Broad-based Support to Cope With Price Increases; No Isolated Tenant/Landlord Dilemma • Following two previous relief packages with a total of €30bn, the German (Self-)employed without government on September 4, 2022, agreed on an additional relief housing benefit
Slide 14: Agenda
Agenda 1. What (Not) to Do In This Environment 2. Impact from Increasing Energy Prices 3. Vonovia CMD 2022
Slide 15: Decarbonization and Energy Transition in Real Estate
Decarbonization and Energy Transition in Real Estate It Matters! Buildings 36% 40% 75% 90% account for… …of energy consumed …of energy-related of EU buildings are not of EU buildings are expected greenhouse gas emissions energy efficient to still be standing in 2050 “At the current pace the decarbon
Slide 16: Vonovia Is Ahead Thanks to Early Start and Climate Path
Vonovia Is Ahead Thanks to Early Start and Climate Path Compliant with EU and German Regulation by 2030 Regulations by the German government and the European Union call for Substantial Energy efficiency improvements by 2030. Total German Housing Stock1 Vonovia2 today today 2030 6,1% 0,6% 17% Classif
Slide 17: Vonovia Is On A Pathway for Near CO2 Neutrality In Its Portfolio
Vonovia Is On A Pathway for Near CO2 Neutrality In Its Portfolio Science-based Decarbonization Roadmap with Measurable Interim Targets • Accelerated decarbonization with near CO2 neutrality in 2045. • Following CRREM MFH 1.5 degree pathway. • Including Scope 1, 2 and 3.3. CO2 intensity in kg CO2e/sq
Slide 18: Disclaimer
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 purp