Deutsche Wohnen Se · XETR:DWNI

Deutsche Wohnen — Merger or Acquisition (December 2015)

13 slides from Deutsche Wohnen's merger presentation, Dec 14, 2015

  1. Slide 1: Summary of reasoned opinion on Vonovia's hostile offer

    Deutsche Wohnen AG » Summary of reasoned opinion on Vonovia’s hostile offer 14 December 2015 1

  2. Slide 2: Vonovia's hostile offer is inadequately low

    » Vonovia’s hostile offer is inadequately low  Unacceptably low premium for premier real estate asset in Germany  Discount to Deutsche Wohnen‘s intrinsic value Offer consideration  Discount to median broker target price inadequate  Discount to premia paid in other relevant transactions  Financi

  3. Slide 3: Discount to Deutsche Wohnen's intrinsic portfolio value

    » Discount to Deutsche Wohnen’s intrinsic portfolio value Significant value upside based on observed current market Strong market fundamentals underpinning rental growth and yield compression value generation in Core+ / Core markets (H1 2015) Core+ Core Non-core Total  Core+ markets experiencing co

  4. Slide 4: Discount to median broker target price

    » Discount to median broker target price Broker target prices(a) vs. implied offer value(b) Median: 27.00 3.8% discount 30.00 30.00 29.00 28.50 25.99 27.00 27.00 27.00 27.00 26.00 26.00 25.90 25.00 24.00 21.00 20.50 (b) Société Generale Berenberg Bankhaus Lampe DZ Bank WGZ Bank / IR Commerzbank Kemp

  5. Slide 5: Discount to premia paid in other relevant transactions

    » Discount to premia paid in other relevant transactions Premia based on 3M VWAPs(a) Premia based on unaffected share prices(a) 18.2 % 17.4 % 16.1 % 15.6 % 15.0 % 14.7 % 11.8 % 10.5 % 7.4 % 6.1 % Vonovia Vonovia/ Alstria/ Deutsche Adler/ Vonovia Vonovia/ Deutsche Alstria/ Adler/ Offer Gagfah Deutsch

  6. Slide 6: Synergies unrealistic and more than outweighed by dis-synergies

    » Synergies unrealistic and more than outweighed by dis-synergies FFO Impact(c):  Realistic synergy potential of max. EUR 20m (pre-tax) EUR 20m  EUR 84m proposed by Vonovia – inflated and unrealistic 200 170 bps  Dis-synergies already materializing as 150 140 bps >100 evidenced by Vonovia’s recen

  7. Slide 7: Loss of premium valuation due to combination with a higher risk company

    » Loss of premium valuation due to combination with a higher risk company Permanent premium valuation of Deutsche Wohnen(a) Value at risk 30 % Current premium to EPRA 21.5% NAV of Deutsche Wohnen 20 % 21.5% Average: 18.1% Current premium to EPRA 10 % 0.4% NAV of Vonovia 0% 0.4% Average: 1.9% Valuati

  8. Slide 8: Valuation of the offer based on EPRA NAV

    » Valuation of the offer based on EPRA NAV In EUR m 0.1 % Vonovia Diluted EPRA NAV incl. Goodwill 12,662 (30 September 2015) Deutsche Wohnen Diluted EPRA NAV incl. Goodwill 24.23 24.20 7,702 (30 September 2015) Cash Component(a) (2,851) Transaction Costs (157) Pro-Forma Combined EPRA NAV 17,357 Deut

  9. Slide 9: Valuation of the offer based on FFO I

    » Valuation of the offer based on FFO I Pro-Forma Target In EUR m 0.4 % LTV: 57% LTV: 50% Deutsche Wohnen FFO I run-rate(a) 370 370 24.31 24.20 Vonovia FFO I Guidance 2016E(b) 659 659 Financing Costs(c) (49) (49) Reduction of Financing Costs due to - 43 Deleveraging(d) Pro-Forma Combined FFO I 2016E

  10. Slide 10: Yield and value upside at low risk profile

    » Yield and value upside at low risk profile Deutsche Wohnen Vonovia CAGR: CAGR: 45.9% 10.2% 1.21 0.85 1.00 FFO I / share(a) 0.40 FY 2013 FY 2015E FY 2013 FY 2015E (Guidance) (Guidance) CAGR: CAGR: Adj. NAV / share 24.7% 18.61 22.85 (3.4)% 21.51 (undiluted)(b) 12.64 FY 2013 9M 2015 FY 2013 9M 2015 5

  11. Slide 11: Timeline – Where do we stand?

    » Timeline – Where do we stand? 01 December Publication of offer document by Vonovia 14 December Publication of reasoned opinion by Deutsche Wohnen 26 January Initial offer period ends Extended offer period, only if tender threshold achieved: IMPORTANT shares can be tendered under the same offer ter

  12. Slide 12: Disclaimer

    » Disclaimer This presentation contains forward-looking statements including assumptions, opinions and views of Deutsche Wohnen or quoted from third party sources. Various known and unknown risks, uncertainties and other factors could cause actual results, financial positions, the development or the

  13. Slide 13: Deutsche Wohnen AG

    Deutsche Wohnen AG Registered Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt/Main 14197 Berlin Phone: +49 30 897 86 5413 Fax: +49 30 897 86 5409 © 2015 Deutsche Wohnen AG 13

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