Vonovia Se · XETR:VNA
Vonovia — Société Générale – The European ESG/SRI Conference (October 2021)
41 slides from Vonovia's conference presentation, Oct 6, 2021
Slide 1: Vonovia Sustainability Presentation
Vonovia Sustainability Presentation Société Générale – The European ESG/SRI Conference October 6, 2021
Slide 2: Agenda
Agenda Vonovia Environment Social Governance 1 2 3 4 Vonovia Environment Social Governance pages 2-10 pages 11-25 pages 26-30 pages 31-40 Vonovia Sustainability Presentation. page 2
Slide 3: Europe’s Leading Residential Property Owner and Operator
Europe’s Leading Residential Property Owner and Operator Vonovia Environment Social Governance We are the long-term owner and full-scale operator of Europe’s largest listed multifamily housing portfolio with ca. 414k apartments for small and medium incomes in metropolitan growth areas. Geographic sp
Slide 4: Vonovia Contributes to Solutions for Tomorrow’s Challenges
Vonovia Contributes to Solutions for Tomorrow’s Challenges Vonovia Environment Social Governance Megatrends Sustainability strategy focused on three dimensions… Commitment to climate Responsibility Urbanization E S protection and CO2 for customers, society An increasing part of the population is mov
Slide 5: Compelling Investment Case
Compelling Investment Case Vonovia Environment Social Governance We are Europe’s largest residential landlord and the long-term owner and full-scale operator of a Market multifamily housing portfolio with ca. 414k apartments for small and medium incomes in metropolitan growth Leader areas. The granu
Slide 6: Impeccable Track Record of Consistent & Sustainable Growth
Impeccable Track Record of Consistent & Sustainable Growth Confident to Maintain Earnings and Value Growth Going Forward Vonovia Environment Social Governance FFO (€/share)1 Dividend (€/share) – 70% payout ratio from FFO +14% CAGR 2.38 2.25 +14% CAGR 2.06 1.90 1.63 1.69 1.57 1.44 1.30 1.32 1.12 0.95
Slide 7: Disciplined Capital Allocation Focused on Long-term Earnings and Value Creation
Disciplined Capital Allocation Focused on Long-term Earnings and Value Creation Vonovia Environment Social Governance 2.38 2.25 70% of recurring cash earnings (FFO) paid 1.90 2.06 1.69 Organic Core Business 1.63 out as dividend 1.57 Dividend 1.44 1.30 1.32 1.12 1.00 We expect to continue to be able
Slide 8: Increased Guidance for 2021E
Increased Guidance for 2021E Vonovia Environment Social Governance Previous 2021 Guidance Current 2021 Guidance Mid-Term (as of 05/2021) (as of 08/2021) Outlook Total Segment Revenue ~€4.9bn - ~€5.1bn ~€4.9bn - ~€5.1bn growing Rental revenue ~€2.3bn - ~€2.4bn ~€2.3bn - ~€2.4bn growing Organic rent g
Slide 9: Sustainable business model deeply rooted in ESG
Sustainable business model deeply rooted in ESG Vonovia Environment Social Governance E NVIRONMENTAL › Climate path defined for the portfolio to achieve CO2 neutrality by 2050 S G OCIAL › Deeply rooted in the middle of society with products & services that impact the lives of more than OVERNANCE › 2
Slide 10: Vonovia’s Sustainability Targets
Vonovia’s Sustainability Targets Vonovia Environment Social Governance CO2 reduction of existing buildings ~3% avg. annual modernization rate - CO2 Intensity: <30 kg CO2/sqm p.a. by 2030 Average primary energy need of new constructions Annual reduction average primary energy demand – 33 (kWh/sqm p.a
Slide 11: Agenda
Agenda Vonovia Environment Social Governance 1 2 3 4 Vonovia Environment Social Governance pages 2-10 pages 11-25 pages 26-30 pages 31-40 Vonovia Sustainability Presentation. page 11
Slide 12: Vonovia’s Climate Path towards CO2 Neutrality
Vonovia’s Climate Path towards CO2 Neutrality through Continued Modernization, Renewable Energy and Sector Coupling Vonovia Environment Social Governance Illustration of different climate path scenarios 2020-2050 (CO2 intensity) 1 50 Base case Increased modernization 45 depth (ca. 60% reduction) 40
Slide 13: Environmental KPIs
Environmental KPIs Vonovia Environment Social Governance Methodology & Framework Energy consumption (kWh/sqm)1 CO2e intensity (kg CO2/sqm)1 GHG Protocol All buildings (incl. listed buildings) Scope 1, 2 and 32 47.2 Sqm numbers in line with GdW and 2019 163 2019 Scope 1 and 2 43.1 Initiative Wohnen.2
Slide 14: Modernization of Building Envelope plus Fuel Switch for the Portfolio
Modernization of Building Envelope plus Fuel Switch for the Portfolio Vonovia Environment Social Governance Vonovia Portfolio 2020 - Energy Efficiency Class Distribution (%) Vonovia’s CO2 reduction strategy (kWh/sqm/year) 25.7 Energy-efficient portfolio modernization of on average ca. 3% p.a. 21.5 C
Slide 15: Photovoltaic Potential – Annual Installation Capacity to be increased 10-fold
Photovoltaic Potential – Annual Installation Capacity to be increased 10-fold Vonovia Environment Social Governance Today's photovoltaic potential PV expansion: Launch of the 30,000 Roofs Program 30,000 Roof Program Annual installation Today's potential will Installation capacity be realized by 2030
Slide 16: Technologies for Reaching Climate Path Objectives
Technologies for Reaching Climate Path Objectives Innovation for CO2-neutral Heat Generation Vonovia Environment Social Governance Existing technologies Innovation for CO2-neutral Heat Generation Tomorrow‘s Energy Center Energiesprong – Serial Continue energy Construction of a Refurbishment efficien
Slide 17: Electricity, Heat and Mobility offer Synergies within our Quarters
Electricity, Heat and Mobility offer Synergies within our Quarters (sector coupling) Vonovia Environment Social Governance So far – Separate Future – Connected within our Quarters Green Mobilityt Heating Quartierssysteme Photovoltaic energy Decentralized electricity to reduce grid dependency CO2- Ut
Slide 18: Energy Innovation Center Bochum Weitmar
Energy Innovation Center Bochum Weitmar Vonovia Environment Social Governance In Bochum-Weitmar, the EZZ was created in a very short time and with its own funds as the first energy research center for the housing stock. In mild winters, the entire heat demand and up to a quarter of the electricity d
Slide 19: New Construction and Development Projects are Sustainable and CO2-optimized (1)
New Construction and Development Projects are Sustainable and CO2-optimized (1) Vonovia Environment Social Governance New construction projects Vienna (Marina Tower) Berlin-Grünau (Pilot Houses) geared towards energy efficiency Use of renewable energies (PV, CO2, renewable heating) Mainly A+ / KfW P
Slide 20: New Construction and Development Projects are Sustainable and CO2-optimized (2)
New Construction and Development Projects are Sustainable and CO2-optimized (2) Vonovia Environment Social Governance MARINA TOWER, WIEN DAS LICHTENHAIN, BERLIN PFARRWIESENGASSE, WIEN 52° NORD, GRÜNAU KENNEDY GARDEN, UFERKRONE, KÖPENICK WIEN AWARDED QUARTERS Vonovia Sustainability Presentation. page
Slide 21: New Construction and Development Projects are Sustainable and CO2-optimized (3)
New Construction and Development Projects are Sustainable and CO2-optimized (3) Vonovia Environment Social Governance Former industrial area, approx. 100,000 m² Located on the banks of the Dahme River in Treptow- Köpenick 2012 Takeover and soil remediation by BUWOG. 2015 Laying of the foundation sto
Slide 22: New Construction and Development Projects are Sustainable and CO2-optimized (4)
New Construction and Development Projects are Sustainable and CO2-optimized (4) Vonovia Environment Social Governance Roof and facade greening: Climbing plants on the facade with automatic irrigation system provide cooling effects in summer and improve the microclimate within the facility Nesting bo
Slide 23: Promotion of Biodiversity in Our Neighborhoods
Promotion of Biodiversity in Our Neighborhoods Vonovia Environment Social Governance Vonovia facts Cooperation Initiatives with NABU NRW Cooperation with NABU NRW since the end 14 million square meters of Wildflower meadow with of 2019 and other partners (Animal Aided green spaces nesting aids (inse
Slide 24: Vonovia‘s Green Bond Framework at a Glance
Vonovia‘s Green Bond Framework at a Glance Vonovia Environment Social Governance Vonovia has established a Green Bond Framework under which the company aims to issue Green Bonds to support its Inaugural green bond sustainability strategy issued on March 17: Aligned with Green Bond Principles 2018 (G
Slide 25: Inaugural Green Bond issuance: Focus on green buildings in Germany
Inaugural Green Bond issuance: Focus on green buildings in Germany Vonovia Environment Social Governance Indicative green building portfolio: Portfolio Value of €795m Nominated projects in conformance with Low Carbon EPC A EPC B Buildings Criteria of the Climate Bonds Standards Vonovia Sustainabilit
Slide 26: Agenda
Agenda Vonovia Environment Social Governance 1 2 3 4 Vonovia Environment Social Governance pages 2-10 pages 11-25 pages 26-30 pages 31-40 Vonovia Sustainability Presentation. page 26
Slide 27: Balanced Stakeholder Approach
Balanced Stakeholder Approach Vonovia Environment Social Governance A home at a fair Self-imposed rent level obligation to cap COVID-19 – special modernization rent promise that we will Hardship case increases to max. find individual Fair rental levels for management to €2 per sqm; solutions for ten
Slide 28: Vonovia Service App
Vonovia Service App Vonovia Environment Social Governance >200,000 downloads Vonovia‘s customer service app for tenants and potential tenants Full customer life cycle in one app >50,000 users Communication Transparency Digital postbox Ancillary expenses: online receipts and News Feed billing Micro s
Slide 29: Neighborhoods / Urban Quarters
Neighborhoods / Urban Quarters Vonovia Environment Social Governance “In residential real estate, a neighborhood, or urban quarter, is usually defined as a cohesive urban structure that is considered by its inhabitants as a self-contained area. It is the predominant aggregation level where a real es
Slide 30: Support for Social and Community Activities in Our Neighborhoods
Support for Social and Community Activities in Our Neighborhoods Vonovia Environment Social Governance We get involved on site - for different projects and associations, so that our tenants feel comfortable in their neighborhood and home. Vonovia supports the City of Cologne and the Lukas Podolski F
Slide 31: Agenda
Agenda Vonovia Environment Social Governance 1 2 3 4 Vonovia Environment Social Governance pages 2-10 pages 11-25 pages 26-30 pages 31-40 Vonovia Sustainability Presentation. page 31
Slide 32: Highly Robust Governance
Highly Robust Governance Vonovia Environment Social Governance Governance Dedicated ESG Numerous policies Department reporting published (e.g. human Highly robust directly to the CEO; rights, whistleblower, governance structure The Supervisory Board tax understanding, with two-tier board monitors ES
Slide 33: Recognition of ESG Performance
Recognition of ESG Performance ESG Ratings and Indices Vonovia Environment Social Governance ESG Ratings • Upgraded in both ratings in 2021 • Risk rating within 1st percentile of global rating universe • Ranked 18 out of universe of 13,573 companies globally (as of Aug. 5, 2021) ESG Risk Rating 2021
Slide 34: Enhancement of Sustainability Reporting
Enhancement of Sustainability Reporting Increasing External Requirements Vonovia Environment Social Governance Additional External Reporting Requirements (beyond established GRI Standards) TCFD CSRD SASB1 Development of EU reporting standard Act on Corporate Due Dilligence in Supply Chains „Sorgfalt
Slide 35: Sustainability in Vonovia's Organizational Model
Sustainability in Vonovia's Organizational Model Vonovia Environment Social Governance Board of Directors: Vonovia Management Board Defines sustainability strategy CEO CRO CFO CDO Sustainability Sustainability Committee: Committee Meets 3-4 times a year Goals and (Management Board / Heads of Decisio
Slide 36: Corporate Governance – AGM, Supervisory Board, Management Board
Corporate Governance – AGM, Supervisory Board, Management Board Vonovia Environment Social Governance The duties and authorities of the three governing bodies derive from the SE Regulation, the German Stock Corporation Act and the Articles of Association. In addition, Vonovia is fully in compliance
Slide 37: Management Board Remuneration - Overview
Management Board Remuneration - Overview Vonovia Environment Social Governance Contractually agreed fixed compensation Fixed Pension contribution Remuneration & Pension Other benefits (e.g. company car, insurances). Overall target attainment x = (0% - 125%) Actual STI Target STI + + Short-term
Slide 38: Sustainability Performance Index (SPI)
Sustainability Performance Index (SPI) Vonovia Environment Social Governance Vonovia has established the Sustainability Performance Index with quantitative, non-financial KPIs to measure sustainability performance in the most relevant areas SPI reporting is audited by our statutory auditor1 The SPI
Slide 39: EU Strategy on Sustainable Finance
EU Taxonomy Vonovia Environment Social Governance Sustainable finance / EU Taxonomy – EU classification framework for sustainable investments to redirect future investments streams EU Strategy on Sustainable Finance Vonovia’s average refurbishment rate of around 3% p.a. in line with EU requirement R
Slide 40: Vonovia‘s Approach to Climate Action Reflects the TCFD Recommendations
Vonovia‘s Approach to Climate Action Reflects the TCFD Recommendations Vonovia Environment Social Governance Board responsibility for climate action, defines strategy and targets and monitors progress Governance Central Department Sustainability/Strategy to coordinate measures ESG Score as central m
Slide 41: Disclaimer
Disclaimer Vonovia Environment Social Governance 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
Vonovia — Société Générale – The European ESG/SRI Conference (October 2021) on 6ix