Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — FY2009 Earnings Presentation
28 slides from Deutsche Wohnen's earnings presentation, Mar 26, 2010
Slide 1: Deutsche Wohnen AG Full Year Results 2009
Deutsche Wohnen AG » Full Year Results 2009 Conference Call, 26 March 2010 1 1
Slide 2: Agenda
» Agenda 1. Results of the financial year 2009 2. Financial highlights 2009 3. Strategic objectives 4. Forecast 2
Slide 3: Results of the financial year 2009
» 1 Results of the financial year 2009 3
Slide 4: Rental Business
» Results of the financial year 2009 Rental Business 14.5; 7% 2009 2008 EUR m EUR m Potential gross rental income 205.1 208.9 Vacancy loss, etc. -14.5 -17.0 39.6; 19% Current gross rental income 190.6 191.9 Non recoverable expenses -6.5 -3.4 18.6; 9% Maintenance -30.1 -36.8 132.4; 65% Marketing -0.8
Slide 5: Potential gross rent per sqm
» Results of the financial year 2009 Potential gross rent per sqm €/sqm 5.4% 7.8% 2.9% 5.80 5.60 1.5% 1.3% 5.40 3.1% 4.5% 2.2% 5.20 3.1% 5.00 4.80 5.14 5.39 5.26 4.60 4.92 5.31 5.10 4.40 4.99 4.77 5.24 4.20 Total East West 31 Dec. 2007 31 Dec. 2008 31 Dec. 2009 In 2009, rent per sqm went up by 3.1%.
Slide 6: Vacancy rate
» Results of the financial year 2009 Vacancy rate -36.9% -58.7% -14.6% 8.00% 9.5% 7.00% -10.0% -22.0% 6.00% -29.7% 5.00% -29.9% 4.00% 6.58% 6.39% 6.77% -41.2% 3.00% 5.92% 4.49% 7.41% 2.00% 1.00% 4.15% 2.64% 5.78% 0.00% Total East West 31 Dec. 2007 31 Dec. 2008 31 Dec. 2009 The vacancy rate declined
Slide 7: Current gross rent per sqm
» Results of the financial year 2009 Current gross rent per sqm Overall portfolio Core and development portfolio €/sqm 8.2% 11.9% 3.9% €/sqm 8.9% 11.6% 4.4% 5.50 5.50 3.6% 5.30 5.2% 0.8% 5.30 6.0% 3.3% 5.0% 5.10 3.5% 5.10 6.4% 0.6% 5.2% 3.0% 4.90 4.90 5.2% 4.70 5.28 4.70 5.13 5.04 5.00 5.18 5.08 4.5
Slide 8: Disposal
» Results of the financial year 2009 Disposal Privatisation Institutional sales 2009 2008 2009 2008 Sales proceeds in EUR m 57.6 61.0 Sales proceeds in EUR m 28.1 58.7 Average sales price Average sales price per EUR/sqm 1,201 1,378 per EUR/sqm 488 741 Multiple on potential gross rent 18.6 19.1 Multi
Slide 9: Corporate expenses
» Results of the financial year 2009 Corporate expenses €m 60 50,6 50 38,9 34,6 40 Personnel expenses 36.1 30 24.4 General & administration 21.7 expenses 20 10 14.5 14.5 12.9 0 2007 2008 2009 The restructuring has led to savings in personnel as well as general and administration expenses totalling E
Slide 10: Portfolio clustering
» Results of the financial year 2009 Portfolio clustering Residential Fair Value Multiple Potential Current Units Rental area EUR/sqm Vacancy EUR m EUR/sqm gross rent gross rent Core portfolio 37,546 2,263,513 5.33 2.7% 2,187 943 14.1 14.6 Berlin 21,908 1,311,669 5.23 1.5% 1,285 961 14.4 14.8 Region
Slide 11: Fair value
» Results of the financial year 2009 Fair value €m Multiple 3,200 17.0 16.6 16.5 3,100 16.0 3,000 15.5 2,900 Fair Value in EUR m 15.0 2,800 14.7 Multiple on current 14.5 gross rent 2,700 14.2 14.0 2,600 13.5 3,142 2,793 2,750 2,500 13.0 2007 2008 2009 Fair value in EUR m 3,142 2,793 2,750 Multiple o
Slide 12: Debt structure
» Results of the financial year 2009 Debt structure €m % 2,400.0 72.0% 70.6% 2,200.0 70.0% 2,000.0 68.0% 1,800.0 Total loans 65.4% 66.0% 1,600.0 LTV 2,179.6 2,089.2 1,802.7 64.0% 1,400.0 1,200.0 62.0% 61.5% 1,000.0 60.0% 31 Dec. 2007 31 Dec. 2008 31 Dec. 2009 Total loans 2,179.6 2,089.2 1,802.7 LTV
Slide 13: Covenants
» Results of the financial year 2009 Covenants 7 loans with a volume of EUR 1,247.9 million (69 % of the loan portfolio) involve financial covenants. A credit volume of approx. EUR 900 million has been renegotiated in 2009, the covenants were adjusted and standardised in terms of DSCR covenants and
Slide 14: Financial highlights 2009
» 2 Financial highlights 2009 14
Slide 15: Financial Highlights 2009: Earnings P&L
» Financial Highlights 2009 Operating result + 18% EUR m Earnings – P&L 150 125.7 2008 EUR m 2009 106.4 315.512 Revenues 306.331 100 17.409 Result from privatisation 15.930 11.423 Other operating income 12.699 344.344 Total income 334.960 50 -237.940 Total expenses -209.250 31.12.2008 31.12.2008 31.
Slide 16: P&L – Segments
» Financial Highlights 2009 P&L – Segments EUR m 2008 2009 Yields based on FV 2008 2009 Current gross rental 6.9% 7.0% Potential gross rental income 208.9 205.1 yield Vacancy loss -15.1 -12.5 Asset NOI yield 5.3% 5.5% Current gross rental income 193.8 192.7 EBITDA yield 4.5%1 4.7%1 Utility expenses
Slide 17: P&L and financial result 2009
Financial result 2009 » Financial Highlights 2009 Ongoing interest exp. - 97.8 Ongoing interest inc. 0.9 P&L Non-cash interest exp. - 15.3 EUR m* 2008 2009 Total - 112.2 EBITDA 130.6 133.5 Non-cash interest expenses 2009 Fair value adjustment -276.5 0.0 Mainly accruals on: Depreciation -1.8 -2.8 Low
Slide 18: Significant improvement of FFO
» Financial Highlights 2009 Significant improvement of FFO FFO EUR m 2008 2009 + 33% Net profit -255.9 -13.3 + Depreciation 1.8 2.8 + Changes in market values of 276.5 0.0 investment properties 34.8 - Result from discontinued business 40 1,40 -16.4 0.0 segments 35 1,20 26.1 + Changes in market value
Slide 19: Balance sheet – assets
» Financial Highlights 2009 Balance sheet – assets Investment properties consist of: EUR m 2008 2009 Properties € 2,724.7m Assets under construction € 32.4m Assisted living and elderly care Investment properties 2,900.7 2,835.5 facilities € 78.4m Other non current assets 23.0 22.4 Deferred tax asset
Slide 20: Balance sheet – liabilities
» Financial Highlights 2009 Balance sheet – liabilities ∆ € +212.7 m EUR m 2008 2009 P&L effect € -13.3 m SWAP-equity effect € -13.6 m Capital Increase € 249.5 m Total equity 649.3 862.0 Cost Cap. Increase € -8.0 m Pension € -2.0 m Financial liabilities 2,089.2 1,802.7 Tax liabilities 82.3 84.1 EK02
Slide 21: Financial position
» Financial Highlights 2009 Financial position Financial liabilities in EUR m DW stand alone DB 14 Total Mark-to-market 1,696.9 105.8 1,802.7 Debt structure LTV (%) 61.4 62.0 61.5 Nominal value 1,759.0 159.6 1,918.6 LTV (%) 63.7 93.6 65.5 180,0 153,9 160,0 139,6 Average interest rate: ~ 4.2% 140,0 1
Slide 22: Strategic objectives
» & Strategic objectives deutsche-wohnen.com | Deutsche Wohnen 22
Slide 23: Strategic objectives
» Strategic objectives Following the completion of its restructuring project, Deutsche Wohnen is one of the most modern housing corporations in Germany with high capital market viability. The business model of Deutsche Wohnen proved its worth during the financial crisis. In the context of our corpor
Slide 24: Strategic objectives – MDAX
» Strategic objectives – MDAX Criteria 1. Market capitalisation 2. Stock market turnover 31 Aug. 2009 (before capital increase) 31 Aug. 2009 (before capital increase) Deutsche Wohnen (EUR 222.01 m) Deutsche Wohnen (EUR 254.46 m) in 53rd place in 54th place 28 Feb. 2010 (after capital increase) 28 Fe
Slide 25: Forecast
» @ Forecast deutsche-wohnen.com . 25
Slide 26: Forecast 2010
» Forecast 2010* Property management: rising rental income and lower vacancy charge largely compensate rental shortfall of sales Sale: Privatisation target of 500 residential units still valid Significant reduction of interest charge due to effects of loan repayments Expectation of a positive overal
Slide 27: 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, development or perform
Slide 28: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt am Main
Deutsche Wohnen AG Head Office Berlin Office Pfaffenwiese 300 Mecklenburgische Straße 57 65929 Frankfurt am Main 14197 Berlin Telefon: 030 897 86 501 Telefax: 030 897 86 519 © 2010 Deutsche Wohnen AG 28