Vonovia Se · XETR:VNA
Vonovia — Deutsche Annington Immobilien — Investor Day (September 2014)
26 slides from Vonovia's investor day presentation, Sep 17, 2014
Slide 1: Deutsche Annington Immobilien SE Capital Markets Day 2014
Deutsche Annington Immobilien SE Capital Markets Day 2014 Bochum, 17th September 2014 © Deutsche Annington Immobilien SE
Slide 2: The engine and the turbo…
The engine and the turbo… Reputation & customer satisfaction Engineering next generation German residential real estate 1 Traditional Property Optimise EBITDA by increasing rent, reducing management vacancy, reducing operating strategy cost, adequate maintenance 5 • Elements 1 & 2 ensure a Acquisi
Slide 3: Strong operational performance sets the basis...
Strong operational performance sets the basis... Property management strategy Good and getting better… Vacancy DAIG • Our property management is the Total 3.8% backbone of our strong operational ./. Privatisation 0.6% performance. ./. Sales 0.6% • This operational strength is Rental Vacancy 2.6% ref
Slide 4: Property management with best-in-class processes and scalable platform
…backed by property management with best-in-class processes and an easily scalable platform…. Property management strategy Shared Central Back- Strong Local Office Services Operations Standardized and Cost-efficient Processes Standardized Structures and Responsibilities Scalable operating platform w
Slide 5: Optimizing our processes and easy integration
…which drives further optimizing of our processes and easy integration. Property management strategy Mature and proven operational business model Experience based Key Performance and Dimension Structured knowledge Indicators management and largely documented best practices guarantee most efficient
Slide 6: The use of iPad technology in property management
The use of iPad-Technology in property management reduces the time effort of administrative tasks … Property management strategy © Deutsche Annington Immobilien SE Capital Markets Day 2014 – September 17th, 2014 6
Slide 7: Optimizing field service productivity and reducing costs
…allowing us to optimize field service productivity and reduce costs Property management strategy Timetable for Phase 1 - churn process: Go-Live Vitus-portfolio implementation of initial/final acceptance, handing with iPads over, viewing appointments, meter iPad usage: reading 06/2014 07/2014 08/201
Slide 8: Modernisation of our portfolio is a highly industrialised process
Modernisation of our portfolio is a highly industrialised & standardised process delivering steady attractive returns Portfolio management strategy High modernisation volume in 2014 and coming years A positive track record at ~7% unlevered yield ‘000 units Un- 100% Lever- 68% (75% relating to former
Slide 9: Efficient process for tactical acquisitions
We implemented an efficient process to acquire smaller portfolios fast and smoothly (tactical acquisitions) Portfolio management strategy With tactical acquisitions (≤ 500 units), we enlarge our transaction toolkit Our target is to refill reductions from privatisation sales by tactical acquisiti
Slide 10: Extension strategy to enlarge traditional business
The target of our Extension Strategy is to enlarge our traditional business and increases customer satisfaction Extension strategy Extend Core Business Key Objectives Example • Increase in customer satisfaction Example resulting in higher customer loyalty Traditional Deepening Business DTAG • Additi
Slide 11: Innovative bathroom concept
Our innovative bathroom concept evidences our standardised & innovative processes Extension strategy Standardization process 1. Implementation of private brand for ceramics and armatures Degree of standardization 2. Concept for DAIG standard bathroom types 3. Development and implementation of a lump
Slide 12: New services and products along social megatrends
We will focus on the systematical development of new services and products along social megatrends Extension strategy Megatrend Today Tomorrow (impulse) (implemented) (in development) Energetic Energetic Age-appropriate living modernization modernization • Elderly aid and care Demographic • Local su
Slide 13: Plenty of opportunities for acquisition
We see plenty of opportunities for acquisition and have the power to bring them home Acquisition strategy Acquisition Deal Pipeline 2013 and 2014 ytd (≥ 2k units) 250 70% 52% Number of residential units 110 175 35% 54 130 19% 33 88 22 140 121 47 97 66 Offers Offers Due Bid Transactio analyse analyse
Slide 14: Dedicated process monitoring every potential acquisition
However every potential acquisition is monitored by a dedicated process, keeping us strongly disciplined Acquisition strategy Acquisition Criteria + Strategic fit Scale benefits, geographical diversification and strengthening footprint in growth regions, increase of asset density, etc. Fulfillme
Slide 15: We do not need acquisitions to grow
We do not need any acquisitions to grow, but if it comes to acquisitions... Acquisition strategy ...we are a highly appreciated and reliable partner 1 We offer transaction security. If we sign, we close as well in a relatively short timeframe. 2 Best-in-class financing strategy with fast access to a
Slide 16: Franconia portfolio transaction
The Franconia portfolio transaction proves our competitive advantage to do acquisitions Acquisition strategy Summary of Deal Units: 5,042 Rent Ø: 5.52 EUR/m² Locations: 2,500 Berlin Region, 1,500 Dresden/Erfurt/Jena/Leipzig, 1,000 Boizenburg (Hamburg Region) Franconia Multiple: 14.4x DAIG PHASE NOTE
Slide 17: Summary
Summary We are the engineers in the German Residential market. Our organisation is running well and continuously getting better. We have an eye on our cost structure. We are able to create value without acquisitions. If an acquisition supports our strategy, we are ready to act - quickly and
Slide 18: Appendix
Appendix Additional slides for Round Table Meetings (Pages 19-24) (Financing Strategy & Extension Strategy) © Deutsche Annington Immobilien SE Capital Markets Day 2014 – September 17th, 2014 18
Slide 19: Key success factors for efficient financings
Our key success factors for efficient financings Financing strategy USP Success factor • All financial strategic decision have been Execution of best-in-class financial delivered over recent years, from strategy restructuring to bond issuance debut • All refinancings at least six month prior to High
Slide 20: DAIG executed a clear financial strategy
Our key success factors for efficient financings Financing strategy DAIG executed a clear financial strategy. 1 Lower LTV into target zone 2 Obtain Investment Grade rating 3 Establish unsecured financing instruments 4 Extend and balance maturities 5 Increase unencumbered assets 6 Tackle maturities b
Slide 21: Financing organisation: front, middle and back office
Our key success factors for efficient financings Financing strategy Front Office Middle Office Back Office Cash and Liquidity Finance/Capital Risk Controlling Administration Management Markets and Funding • Cash Management • Leader of deal-teams • Calculation of market • Administration of • Account
Slide 22: Track Record Highlights
Track Record Highlights Financing strategy Unsecured financing strategy fully established in just 12 month time: #2 in European Real Estate Bond Market today Refinancing risk eliminated and maturity profile smoothened No refinancing until 2016 after redemption of an EUR 140m DeWAG loan early July
Slide 23: Long-term and well-balanced maturity profile
Long-term and well-balanced maturity profile Financing strategy Debt maturity profile as of July 31, 2014 (€ m) 1.800 2019: 1.600 Considered 1.400 `economical maturity´ of the hybrid-bond 1.200 1.000 800 600 400 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 from 2023 Mortgages Structured Loans
Slide 24: Efficiency gains through product standards
Significant efficiency gains by thorough product standards from apartment modernization to new construction Extension strategy Product standardization is a cornerstone of the industrialization of DA’s construction processes Example: progressive standardization of bathrooms 1. Implementation of priva
Slide 25: Disclaimer – Confidentiality Declaration
Disclaimer – Confidentiality Declaration This presentation has been specifically prepared by Deutsche Annington Immobilien SE and/or its affiliates (together, “DA”) for internal use. Consequently, it may not be sufficient or appropriate for the purpose for which a third party might use it. This pres
Slide 26: IR Contact & Financial Calendar
IR Contact & Financial Calendar Contact Financial Calendar H2 2014 Investor Relations August 4-5 Management Roadshow, London August 6 Management Roadshow, Brussels Deutsche Annington Immobilien SE Philippstraße 3 August 7 Management Roadshow, Amsterdam 44803 Bochum, Germany Sep 9 Management Roadshow
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