Vonovia Se · XETR:VNA
Vonovia — Non-Deal Roadshow (February 2017)
99 slides from Vonovia's roadshow presentation, Feb 7, 2017
Slide 1: Company Presentation – Non-deal Asia Roadshow
Company Presentation Non-deal Asia Roadshow February 7-10, 2017
Slide 2: Market, Company, Strategy & Execution
Market Company Strategy & Execution Non-deal Asia Roadshow, February 7-10, 2017 page 2
Slide 3: German Residential – Safe Harbor and Low Risk
Market German Residential – Safe Harbor and Low Risk German residential market: important pillar of the German economy With a GDP contribution of more than €500bn the German residential real estate industry represents more than 18% of Germany’s GDP. Germany and its resilient economy provide a compar
Slide 4: German Residential – Favorable Fundamentals
Market German Residential – Favorable Fundamentals New Supply falls short of demand After record construction volumes in the 1990s, new volumes have plummeted as Germany has reduced its building capacity. While volumes have been recovering from all-time lows in 2009 and 2010, the current levels are
Slide 5: German Residential – Favorable Fundamentals
Market German Residential – Favorable Fundamentals Low home ownership ratio – Germans prefer to rent Rental housing very affordable in Germany With the exception of Switzerland, Germany has the Affordability in Germany is higher than in the UK or lowest homeownership ratio in Europe. France. Rental
Slide 6: German Residential – Favorable Fundamentals
Market German Residential – Favorable Fundamentals Fragmented ownership structure Growing number of smaller households Germany is the largest housing market in Europe with While the overall population in Germany is expected to ~42m housing units, of which ~23m are rental units. slightly decline, the
Slide 7: No Correlation between Interest Rates and Property Values
Market No Correlation between Interest Rates and Property Values Valuation methodology for German residential properties is primarily based on market prices for assets – not on interest rates While market prices are affected by the general interest levels there is no significant correlation. Other f
Slide 8: Market, Company, Strategy & Execution
Market Company Strategy & Execution Non-deal Asia Roadshow, February 7-10, 2017 page 8
Slide 9: Vonovia at a Glance
Company Vonovia at a Glance Germany’s largest residential landlord with national footprint in urban regional markets Residential real estate company with B-to-C characteristics. Industrialized approach leverages economies of scale in a highly homogeneous asset class. Strong internal growth profile v
Slide 10: If You Want to Know Where Germans Live - Follow the Light
Company If You Want to Know Where Germans Live - Follow the Light Illustration of Germany at Night Source: www.bundeswahlleiter.de Non-deal Asia Roadshow, February 7-10, 2017 page 10
Slide 11: Strong Overlap with Vonovia Portfolio
Company Strong Overlap with Vonovia Portfolio Illustration of Germany at Night Source: www.bundeswahlleiter.de Non-deal Asia Roadshow, February 7-10, 2017 page 11
Slide 12: Management Team with Wide Range of Experience
Company Management Team with Wide Range of Experience CFO CEO CCO COO Dr. A. Stefan Kirsten Rolf Buch Gerald Klinck Klaus Freiberg Since 2011 CFO of Vonovia Since 2013 CEO of Vonovia Board member since 2012 Board member since 2010 Former CEO of Majid Al Former management board Former CFO of GAGFAH R
Slide 13: Scaleable Organization
Company Scaleable Organization Asset Management Property Management ~338,000 apartments 38 Business Units 6 Business Units 5 Business Units 4 Business Units 8 Business Units 7 Business Units 8 Business Units Local Local property management, letting, care-taking North East South-East South Central We
Slide 14: Three Valuation Layers with Different Volatilities
Company Three Valuation Layers with Different Volatilities High degree of stability and predictability of underlying business (layer 1) and portfolio valuation (layer 2) is not reflected in share price development (layer 3), as equity markets appear to apply valuation parameters that are substantial
Slide 15: Vonovia History
Company Vonovia History Seed portfolios of today‘s Vonovia have origin in public housing provided by government, large employers and similar landlords with a view towards offering affordable housing. At beginning of last decade, private equity invested in German residential on a large scale includin
Slide 16: Liquid Large-cap Stock
Company Liquid Large-cap Stock Shareholder structure (as of December 31, 2016) Share information First day of trading July 11, 2013 8.3% Number of shares outstanding 466 million 7.6% Blackrock Free float based on Deutsche 92.4% Börse definition 5.4% Norges ISIN DE000A1ML7J1 3.6% Lansdowne Ticker sym
Slide 17: Attractive Dividend Policy
Company Attractive Dividend Policy Number of months until costs are earned* by recurring Sustainable and growing cash flow with attractive pay-out income1 ratio ~1.80 12 ~1.63 Dividend 10 (ca. 70%) 70 % 1.30 of FFO FFO 1.12 8 number of months* 1.00 Other 0.95 0.94 (ca. 30%) Taxes 0.74 6 0.67 Interes
Slide 18: Guidance for 2016 and 2017
Company Guidance for 2016 and 2017 (effects from conwert takeover not yet taken into account) 2015 2016 2017 Actuals Guidance Guidance Rent growth expected to continue to accelerate L-f-l rental growth (eop) 2.9% 3.0-3.2% 3.5%-3.7% Occupancy (eop) 97.3% ~97.5% >97.5% Stable top line on smaller portf
Slide 19: Guidance for 2016 and 2017 (EUR, USD, JPY)
Company Guidance for 2016 and 2017 (effects from conwert takeover not yet taken into account) EUR USD JPY 2015 2016 2017 2015 2016 2017 2015 2016 2017 Actuals Guidance Guidance Actuals Guidance Guidance Actuals Guidance Guidance L-f-l rental growth (eop) 2.9% 3.0% - 3.2% 3.5% - 3.7% 2.9% 3.0% - 3.2%
Slide 20: Guidance for 2016 and 2017 (EUR, USD, KRW)
Company Guidance for 2016 and 2017 (effects from conwert takeover not yet taken into account) EUR USD KWR 2015 2016 2017 2015 2016 2017 2015 2016 2017 Actuals Guidance Guidance Actuals Guidance Guidance Actuals Guidance Guidance L-f-l rental growth (eop) 2.9% 3.0% - 3.2% 3.5% - 3.7% 2.9% 3.0% - 3.2%
Slide 21: Guidance for 2016 and 2017 (EUR, USD, HKD)
Company Guidance for 2016 and 2017 (effects from conwert takeover not yet taken into account) EUR USD HKD 2015 2016 2017 2015 2016 2017 2015 2016 2017 Actuals Guidance Guidance Actuals Guidance Guidance Actuals Guidance Guidance L-f-l rental growth (eop) 2.9% 3.0% - 3.2% 3.5% - 3.7% 2.9% 3.0% - 3.2%
Slide 22: Guidance for 2016 and 2017 (EUR, USD, SGD)
Company Guidance for 2016 and 2017 (effects from conwert takeover not yet taken into account) EUR USD SGD 2015 2016 2017 2015 2016 2017 2015 2016 2017 Actuals Guidance Guidance Actuals Guidance Guidance Actuals Guidance Guidance L-f-l rental growth (eop) 2.9% 3.0% - 3.2% 3.5% - 3.7% 2.9% 3.0% - 3.2%
Slide 23: Market, Company, Strategy & Execution
Market Company Strategy & Execution Non-deal Asia Roadshow, February 7-10, 2017 page 23
Slide 24: Proven and Unchanged Strategy since IPO
Proven and Unchanged Strategy since IPO Reputation & Customer Satisfaction Systematic optimization of operating performance and core business productivity Traditional through leveraging scaling effects 1 Property Management High degree of standardization and industrialization throughout the entire o
Slide 25: Proven and Unchanged Strategy since IPO
Proven and Unchanged Strategy since IPO Reputation & Customer Satisfaction Systematic optimization of operating performance and core business productivity Traditional through leveraging scaling effects 1 Property Management High degree of standardization and industrialization throughout the entire o
Slide 26: Property Management
Property 1 Management Property Management Growing rents Declining and stabilizing vacancy rates >6.00 4.8 5.75 5.58 4.1 3.9 5.40 3.5 3.4 5.28 5.17 2.7 ~2.5 5.05 2010 2011 2012 2013 2014 2015 2016(E) 2010 2011 2012 2013 2014 2015 2016(E) In-place rent (€/sqm), eop Vacancy rate (%, eop) Adequate maint
Slide 27: Proven Strategy
Proven Strategy Reputation & Customer Satisfaction Systematic optimization of operating performance and core business productivity Traditional through leveraging scaling effects 1 Property Management High degree of standardization and industrialization throughout the entire organization Ensure well-
Slide 28: Well-balanced Debt Maturity Profile & Diverse Funding Mix
2 Financing Well-balanced Debt Maturity Profile & Diverse Funding Mix Current debt maturity profile1 3,000 2,500 2,000 1,500 1,000 500 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 from Mortgages Structured Loans Bond Debt Hybrid Equity Hybrid 2031 Maturity profile as of De
Slide 29: A Simple WACC and LTV Model
2 Financing A Simple WACC and LTV Model LTV 2006 82.4% LTV 2011 63.4% LTV 2012 58.1% LTV 2013 48.1% VONOVIA LTV Target Source: Greenstreet Advisors Non-deal Asia Roadshow, February 7-10, 2017 page 29
Slide 30: Financing Sources – Decision Tree
2 Financing Financing Sources – Decision Tree Financing sources Liquidity Debt LTV Equity Secured Unencumberance Unsecured Senior Syndicated Rights Less Mortgage CMBS Hybrid suitable Loan Issue Loans Convertible Structured More Mortgage Bond ABB Suitable Loans Non-deal Asia Roadshow, February 7-10,
Slide 31: Proven Strategy
Proven Strategy Reputation & Customer Satisfaction Systematic optimization of operating performance and core business productivity Traditional through leveraging scaling effects 1 Property Management High degree of standardization and industrialization throughout the entire organization Ensure well-
Slide 32: Total Return Matrix
Portfolio 3 Management Total Return Matrix Continuous improvement of portfolio quality and exposure to attractive markets through acquisitions and sales. Increased portfolio size has resulted in lower risk profile. Benchmark against independent research confirms that our strategic portfolio is in th
Slide 33: Pro-active Portfolio Management
Portfolio 3 Management Pro-active Portfolio Management Pro-active portfolio More than €1bn invested in value-enhancing Modernization* management results in modernization between 2013 and 2016. material improvements in quality of assets and Sale of ~42k Non-core and Non-strategic locations. Disposal*
Slide 34: Broad Geographic Basis for Expected Valuation Uplift
Portfolio 3 Management Broad Geographic Basis for Expected Valuation Uplift Uplift FV Geographic Breakdown of Expected Valuation Uplift Value driver (€m) Performance 750 – 950 (rent development, redemption of rent control, etc.) Investments 450 – 470 Yield compression 2,300 – 2,500 Total 3,500 - 3,9
Slide 35: Growing Investment Program
Portfolio 3 Management Growing Investment Program Modernization investments are a valuable organic growth driver. Investments in year 1 lead to rent growth in year 2 onwards. Increasing investment volume (€m) Yield* 7.2% 7.4% ~7.6% ~7% ~7% Actual Actual Estimate Hurdle rate Hurdle rate Σ €1bn Expect
Slide 36: Substantial Reduction of Portfolio Locations
Portfolio 3 Management Substantial Reduction of Portfolio Locations 03/2015 (incl. Südewo) FC 12/2016 Strategic Portfolio 818 locations 665 locations ~400 locations Vonovia location Schwarmstädte Non-deal Asia Roadshow, February 7-10, 2017 page 36
Slide 37: Conservative Valuation
Portfolio 3 Management Conservative Valuation In-place valuations are still only half of replacement values, in spite of accelerating valuation growth in recent years. Values per sqm (€) ~2,500 ~1,800 ~1,300 1,054 901 964 792 812 839 VNA 2010 VNA 2011 VNA 2012 VNA 2013 VNA 2014 VNA 2015 VNA 2016(E)
Slide 38: Proven Strategy
Proven Strategy Reputation & Customer Satisfaction Systematic optimization of operating performance and core business productivity Traditional through leveraging scaling effects 1 Property Management High degree of standardization and industrialization throughout the entire organization Ensure well-
Slide 39: Extension - Innovation as Growth Driver
4 Extension Extension - Innovation as Growth Driver Continuous flow of innovative projects that are all immediately linked to the apartment or customer/rental contract. Digital access Upgrade buildings (energetic modernization) Safety Floor Parking additions E- Curb Energy mobili Heating appeal gene
Slide 40: Extension – Increasing Organic Growth
4 Extension Extension – Increasing Organic Growth Extension business with increasing significance and compelling growth rates. Vonovia, through its subsidiaries, now employs ca. 3,600 craftsmen and gardeners. Subsidiary for Third-party and condo management* now with 22 local offices in Germany manag
Slide 41: Proven Strategy
Proven Strategy Reputation & Customer Satisfaction Systematic optimization of operating performance and core business productivity Traditional through leveraging scaling effects 1 Property Management High degree of standardization and industrialization throughout the entire organization Ensure well-
Slide 42: Conwert Acquisition an All-around Success
Conwert Acquisition an All-around Success • One of the largest European RE deals with €2.8bn transaction volume • After failed attempts by Haselsteiner, DWN, Sagi and Adler, Vonovia successfully completed the transaction within only four months (plus mandatory 2nd offer period) Smooth • Terms commun
Slide 43: Acquisition Track Record
5 Acquisition Acquisition Track record (Total number of units incl. impact from disposals) conwert 375k 357k (24k) Südewo 333k closed (20k) in Q1 2017 Gagfah (140k) 203k Franconia (5k) 182k 175k Dewag (11k) Vitus (30k) 2012 2013 2014 2015 2016E pro forma Vonovia is the largest and most diverse playe
Slide 44: Acquisitions – Opportunistic but Disciplined
5 Acquisition Acquisitions – Opportunistic but Disciplined Acquisition pipeline (‘000 units) – excl. Gagfah 220 200 200 180 175 160 140 136 120 112 100 87 79 80 71 69 66 60 44 37 40 26 23 251 20 5 0 Examined* Analyzed in more detail* Due Diligence, partly ongoing* Bids* Signed* FY 2014 FY 2015 FY 20
Slide 45: Summary
Summary Predictable top and bottom line with downside protection and upside potential. Only residential company in German Blue Chip Index DAX; ca. €14bn market cap. Liquid stock with 92% free float and ca. €45m daily turnover on Xetra. Market leadership with nationwide footprint offers additional gr
Slide 46: IR Contact & Financial Calendar
IR Contact & Financial Calendar Contact Financial Calendar Rene Hoffmann Feb 7-10 Management Roadshow, Asia (excl. China) Head of Investor Relations Mar 7 FY 2016 results Vonovia SE Mar 8-10 Roadshow London, Frankfurt, Amsterdam Mar 13 Roadshow Paris Philippstraße 3 Mar 22 Commerzbank Resi Property
Slide 47: Appendix
Appendix Non-deal Asia Roadshow, February 7-10, 2017 page 47
Slide 48: Highlights 9M 2016
Highlights 9M 2016 Operating business running smoothly with strong momentum In-place rent of €5.94 per sqm per month (+4.4% y-o-y). L-f-l rent growth of 2.8% y-o-y. Adj. EBITDA Operations* of €832.3m or €2,394 per average unit* (+8.4% y-o-y). FFO 1 of €571.6m or €1.23 per share* (up 29.8% y-o-y on a
Slide 49: Highlights 9M 2016
Highlights 9M 2016 2016 guidance confirmed at upper end of range; increase of proposed dividend FFO 1 now expected at higher end of the range with ~€760m or ~€1.63 per share*. Dividend of €1.12 per share (19.1% increase y-o-y) intended to be proposed to the 2017 Annual General Meeting; dividend prop
Slide 50: Strong Development of KPIs
Strong Development of KPIs Higher overall in- 9M 2016 9M 2015 Delta place rent growth as a result of successful action-driven In-place rent (eop) €/month/sqm 5.94 5.69 +4.4% portfolio In-place rent l-f-l (eop) €/month/sqm 5.94 5.77 +2.8% management and acquisitions Vacancy rate (eop) % 2.8 3.4 -60 b
Slide 51: Growing Adj. EBITDA and EBITDA Operations Margin
Property 1 Management Growing Adj. EBITDA and EBITDA Operations Margin* Adj. EBITDA Operations margin of 71.8% in 9M 2016, up from 68.6% in 9M 2015. Expensed vs. capitalized maintenance varies between companies and is a major discretionary swing factor in the EBITDA margin, which is why Vonovia repo
Slide 52: Maintenance and Modernization
Property 1 Management Maintenance and Modernization Stable maintenance expenses on a per sqm basis y-o-y. The maintenance capitalization ratio* is not an input factor but an outcome; i.e. what type of work is expensed vs. capitalized is determined on the basis of a pre-defined SAP-based catalogue ag
Slide 53: Substantial LTV Reduction Expected for YE 2016
2 Financing Substantial LTV Reduction Expected for YE 2016 €m (unless indicated otherwise) Sep. 30, 2016 Dec. 31, 2015 Delta Non-derivative financial liabilities 13,000.0 14,939.9 -13.0% Foreign exchange rate effects -155.5 -179.4 -13.3% Cash and cash equivalents -1,118.1 -3,107.9 -64.0% Net debt 11
Slide 54: Bonds / Rating
2 Financing Bonds / Rating Corporate Investment grade rating as of 2015-09-30 Rating agency Rating Outlook Last Update Standard & Poor’s BBB+ Stable 06 September 2016 Bond ratings as of 2015-09-30 Name Tenor & Coupon ISIN Amount Issue price Coupon Final Maturity Date Rating Bond 002 (EUR-Bond) 6 yea
Slide 55: Economies of Scale in EMTN Issuance Costs
2 Financing Financing – Economies of Scale in EMTN Issuance Costs We have managed to establish ourselves as a first class frequent issuer on the capital markets since our IPO. The September 2016 issuance was structured as a private bond. 8 of our bonds so far have been purchased through the ECB‘s Co
Slide 56: Bond and Rating KPIs - as per September 30, 2016
2 Financing Bond and Rating KPIs - as per September 30, 2016 Bond KPIs Covenants* Level Actual LTV <60% 45% Total Debt / Total Assets Secured LTV <45% 15% Secured Debt / Total Assets ICR >1.80x 3.54x Last 12 months EBITDA / Last 12 months Interest Expense Unencumbered Assets >125% Unencumbered Asset
Slide 57: Development of Unencumberance Ratio
2 Financing Development of Unencumberance Ratio Unencumberance ratio dropped from 49.6% pre GAGFAH down to 32.1% including GAGFAH in 2015. S&P provided 18 months (i.e. 30 September 2016) to reach an unencumberance ratio of > 50%. Upon GRF-1 prepayment in August 2016, the unencumberance ratio increas
Slide 58: Interest Rate Correlation DAX Stocks
2 Financing Interest Rate Correlation DAX 30 Stocks 1.00 Deutsche Boerse DAX Index 30.06. and 03./09.02.2016 23.06.2016 13.07.2015 Peace talks about Syria BREXIT SAP SE Greece does not repay stopped and Siemens AG 0.80 it´s IWF-liabilities. NATO enlarges military Bayer AG presence at Russian boarder
Slide 59: Adj. EBITDA Sales
Portfolio 3 Management Adj. EBITDA Sales* Privatization volume slightly higher y-o-y partly as a result of privatization sales in the context of portfolio transactions; excluding this impact the margin for the first nine months 2016 was 38.5%. Increased non-core and non-strategic sales largely drive
Slide 60: Successful Sales Programs
Portfolio 3 Management Successful Sales Programs Privatization Non-core & Non-strategic Y-o-y growth of per sqm sales prices Reduced Non-core and Non-strategic volume by 2015 vs. 2014: +3.6% more than half in nine months. 2016 ytd vs. 2015: +22.2% Privatization sales of prior years have left the loc
Slide 61: 3 Angles to Look on the Portfolio
Portfolio 3 Management 3 Angles to Look on the Portfolio Geographic 1 Federal states Markets Individual cities 2 Action-driven portfolio clustering Operate 3 Upgrade Buildings Operating platform Optimize Apartments 6 Regions Privatization 38 Business Units Non-strategic Non-core Non-deal Asia Roadsh
Slide 62: Enhanced Transparency on Portfolio Structure
Portfolio 3 Management Enhanced Transparency on Portfolio Structure Given its numerous larger and mid-sized urban areas and its heterogeneous local markets, Germany is quite different from countries such as France or the UK where the capital city tends to overshadow the rest. The relevance of the ca
Slide 63: 15 Regional Markets
Portfolio 3 Management 15 Regional Markets Balanced Strategic Portfolio with high exposure and material footprint in strong Markets. Well positioned to benefit from a dynamic development across the country. Market data on future development shows attractive growth rates across all Markets. Avg. rent
Slide 64: Exposure to Attractive Regional Markets has Grown
Portfolio 3 Management Exposure to Attractive Regional Markets has Grown The strategy of portfolio investments, disposals of weaker markets and acquisitions in stronger markets has resulted in a substantially more attractive portfolio due to higher-quality assets and locations. Portfolio share in Sc
Slide 65: Maintenance or Modernization?
Portfolio 3 Management Maintenance or Modernization? Illustrative Flow of Funds Rental Income - Maintenance Expense MAINTENANCE - Operating expenses (“Platform costs”) Allocation between expensed maintenance + adj. EBITDA Extension and Other and capitalized maintenance is a major swing factor in ope
Slide 66: Schwarmstädte
Portfolio 3 Management Schwarmstädte While the actual demographic development has not deviated materially Change 2008-2013 from past projections, the regional distribution of the population is Cohort-growth Total Age 20-34 Age 30-34 rate 15-34 Population seeing a comprehensive shift as especially th
Slide 67: Prognos Methodology
Portfolio 3 Management Prognos Methodology Prognos is an independent research institute that benchmarks all 402 cities and counties in Germany (“Prognos Future Atlas Ranking”). Cities and counties are ranked across 8 categories ranging from 1 (“excellent potential”) to 8 (“extreme future risks”). An
Slide 68: Impressions
Portfolio 3 Management Impressions Frankfurt, Odenwaldstr. 2-4b Frankfurt, Am Lindenbaum 15-85A Frankfurt, Friedlebenstr. 32 Essen, Meistersingerstrasse 20-24C Non-deal Asia Roadshow, February 7-10, 2017 page 68
Slide 69: Impressions
Portfolio 3 Management Impressions Dortmund, Binsengarten 8-24 A Dresden, Kipsdorfer Strasse, 123-139 Dresden, Niederseidewitzer Weg, 32-40 Dresden, Berzdorfer Str. 20-24 Non-deal Asia Roadshow, February 7-10, 2017 page 69
Slide 70: Impressions
Portfolio 3 Management Impressions Essen, Feldwiese 16-30 Dortmund, Doerwerstr, 68-70 Dortmund, Lippmannstr. 2-14 Essen, Bonnekampstr. 18-43 B Non-deal Asia Roadshow, February 7-10, 2017 page 70
Slide 71: Optimize Apartment
Portfolio 3 Management Optimize Apartment Before After Non-deal Asia Roadshow, February 7-10, 2017 page 71
Slide 72: Optimize Apartment
Portfolio 3 Management Optimize Apartment Before After Non-deal Asia Roadshow, February 7-10, 2017 page 72
Slide 73: Upgrade Building
Portfolio 3 Management Upgrade Building Before After Non-deal Asia Roadshow, February 7-10, 2017 page 73
Slide 74: Upgrade Building
Portfolio 3 Management Upgrade Building Before After Non-deal Asia Roadshow, February 7-10, 2017 page 74
Slide 75: Upgrade Building
Portfolio 3 Management Upgrade Building Before After Non-deal Asia Roadshow, February 7-10, 2017 page 75
Slide 76: Floor Addition
Portfolio 3 Management Floor Addition Non-deal Asia Roadshow, February 7-10, 2017 page 76
Slide 77: Floor Addition
Portfolio 3 Management Floor Addition Non-deal Asia Roadshow, February 7-10, 2017 page 77
Slide 78: Modernization - Impressions
Portfolio 3 Management Modernization - Impressions Addition of new floor plus modernization investment - Before Addition of new floor plus modernization investment - After Upgrade Building - Before Upgrade Building - After Non-deal Asia Roadshow, February 7-10, 2017 page 78
Slide 79: Modular Construction
Portfolio 3 Management Modular Construction Non-deal Asia Roadshow, February 7-10, 2017 page 79
Slide 80: Modular Construction
Portfolio 3 Management Modular Construction Non-deal Asia Roadshow, February 7-10, 2017 page 80
Slide 81: Modular Construction
Portfolio 3 Management Modular Construction Non-deal Asia Roadshow, February 7-10, 2017 page 81
Slide 82: Modular Construction
Portfolio 3 Management Modular Construction Non-deal Asia Roadshow, February 7-10, 2017 page 82
Slide 83: Modular Construction
Portfolio 3 Management Modular Construction Pilot project in Bochum with 14 residential units Factory-based construction of modules in within 4 months; on-site assembly of modules within only 5 days Construction cost of €1,800 per sqm (all-in, excl. land, which we already owned) Completed in mid Dec
Slide 84: Neighbourhood Development “Eltingviertel”
Portfolio 3 Management Neighbourhood Development “Eltingviertel” Non-deal Asia Roadshow, February 7-10, 2017 page 84
Slide 85: TGS Van
TGS Van Non-deal Asia Roadshow, February 7-10, 2017 page 85
Slide 86: Final Guidance for 2016
Final Guidance for 2016 Initial Updated 2015 Guidance Guidance Final Guidance actuals for 2016 for 2016 for 2016 (in Nov. ‘15) (in Aug. ‘16) L-f-l rental growth (eop) 2.9% 2.8-3.0% 3.0-3.2% 3.0-3.2% Vacancy (eop) 2.7% ~3% ~2.5% ~2.5% Rental Income (€m) 1,415 1,500-1,520 1,530-1,550 1,530-1,550 Upper
Slide 87: FFO per Share Up 29.8% y-o-y
FFO per Share* Up 29.8% y-o-y The 19% Adj. EBITDA Operations* growth combined with reduced financing expenses and continuously low current income taxes translate into an absolute FFO growth of 29.8% on a per-share* basis. Prior-year current income taxes of €15.8m are now broken down between “Operati
Slide 88: EPRA NAV Impacted by Dividend Payout
EPRA NAV* Impacted by Dividend Payout Accounting for €0.94 dividend (€438m) paid in May 2016 the EPRA NAV is stable. Portfolio valuation will be accounted for in the Q4/FY 2016 results. €m (unless indicated otherwise) Sep. 30, 2016 Dec. 31, 2015 Delta Equity attributable to Vonovia's shareholders 10
Slide 89: Reconciliation IFRS Profit to FFO
Reconciliation IFRS Profit to FFO €m (unless indicated otherwise) 9M 2016 9M 2015 Delta 0 PROFIT FOR THE PERIOD 278.3 193.5 43.8% EBITDA increase mainly Financial result 354.1 297.8 18.9% driven by rental business Income taxes 177.1 131.1 35.1% Depreciation 16.4 7.3 >100% Income from fair value adju
Slide 90: P&L
P&L €m (unless indicated otherwise) 9M 2016 9M 2015 Delta Increase mainly acquisition- related; additionally in-place rent 0 on a like-for-like basis increased Income from property letting 1,640.3 1,470.3 11.6% by 2.8%; additionally vacancy Other income from property management 29.1 21.3 36.6% rate
Slide 91: Balance Sheet (1/2 – Total Assets)
Balance Sheet (1/2 – Total Assets) €m (unless indicated otherwise) Sep. 30, 2016 Dec. 31, 2015 Delta Assets Intangible assets 2,741.0 2,724.0 0.6% Property, plant and equipment 87.5 70.7 23.8% Increase mainly due to the acquisition and Investment properties 23,696.9 23,431.3 1.1% valuation of Deutsc
Slide 92: Balance Sheet (2/2 – Total Equity and Liabilities)
Balance Sheet (2/2 – Total Equity and Liabilities) €m (unless indicated otherwise) Sep. 30, 2016 Dec. 31, 2015 Delta Equity and liabilities Increase mainly Subscribed capital 466.0 466.0 0.0% results from the Capital reserves 5,891.4 5,892.5 0.0% valuation of the Retained earnings 3,961.2 4,309.9 -8
Slide 93: Guidance for 2017
Guidance for 2017 (effects from potential conwert takeover not yet taken into account) 2015 2016 2017 Actuals Guidance Guidance Rent growth expected to continue to accelerate L-f-l rental growth (eop) 2.9% 3.0-3.2% 3.5%-3.7% Vacancy (eop) 2.7% ~2.5% <2.5% Stable top line on smaller portfolio Rental
Slide 94: Additional KPIs
Additional KPIs 9M 2016 / 9M 2015 / Sep 30, 2016 Sep 30, 2015 Headcount (eop) 7,074 6,125 EPRA vacancy rate (eop) 2.6% 3.2% IFRS profit for the period 278.3 193.5 Number of units acquired 2,440 168,632 Number of units sold 21,922 5,322 Total residential sqm (‘000; eop) 21,064 22,863 Non-deal Asia Ro
Slide 95: Glossary / Sources
Glossary / Sources Item Comment / Description / Source Acquisition 200k units include the acquisition of Vitus (30k), Dewag (11k), Franconia (5k), Südewo (20k), and Gagfah (140k) Acquisition pipeline: "Analyzed in more detail" Generally interesting and reviewed by central Acquisitions Department Acq
Slide 96: Glossary / Sources
Glossary / Sources Item Comment / Description / Source Covenant: Secured LTV Total secured non derivative financial liabilities / total assets (as shown in the balance sheet) Covenant: Unencumbered assets Total unencumbered assets / total unsecured non derivative financial liabilities Debt/EBITDA Ne
Slide 97: 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
Slide 98: For Your Notes
For Your Notes Non-deal Asia Roadshow, February 7-10, 2017 page 98
Slide 99: For Your Notes
For Your Notes Non-deal Asia Roadshow, February 7-10, 2017 page 99