Deutsche Wohnen Se · XETR:DWNI
Deutsche Wohnen — Non-Deal Roadshow (January 2016)
18 slides from Deutsche Wohnen's roadshow presentation, January 2016
Slide 1: Deutsche Wohnen AG Roadshow Presentation January 2016
Deutsche Wohnen AG » Roadshow Presentation January 2016
Slide 2: Compelling growth of FFO, dividend and NAV
» Compelling growth of FFO, dividend and NAV FFO I a) & Dividend per share FFO I per share expected to rise by ~14% in 2016 FFO I Dividend (~24% in 2015) ~1.07 Improved profitability and cash flow generation ~0.94 allows for increase of payout ratio to 65% of FFO I 0.76 EUR/share ~0.70 starting
Slide 3: Highly accretive acquisitions in 2015 with significant upside
» Highly accretive acquisitions in 2015 with significant upside Acquisitions signed in 2015 Residential units In-place Market Vacancy Fair Value Market rent a) a) a) rent rent rate (EUR/sqm) multiple # (EUR/sqm) (EUR/sqm) in % Core+ 14,406 5.79 7.12 2.0 1,469 17.2 Thereof greater Berlin 11,455 5.27
Slide 4: Deutsche Wohnen shareholders should NOT tender their shares!
» Deutsche Wohnen shareholders should NOT tender their shares! Loss of premium Synergies unrealistic and Offer consideration valuation due to Offer conditions and outweighed by dis- inadequate combination with higher terms unclear synergies risk company Unacceptably low premium for Transaction w
Slide 5: Deutsche Wohnen: Low risk and efficient financing structure
» Deutsche Wohnen: Low risk and efficient financing structure Deutsche Wohnen Vonovia a) Deutsche Wohnen has lower leverage, Rating A- / A3 BBB+ / NA longer maturities and better rating 38% (43% pro forma 53% (57% pro forma LTV Structurally disadvantageous financing announced acquisitions) annou
Slide 6: Appendix: Summary of reasoned opinion on Vonovia's hostile offer
» Appendix Summary of reasoned opinion on Vonovia’s hostile offer Presentation from 14 December 2015 6
Slide 7: 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
Slide 8: 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
Slide 9: 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
Slide 10: 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
Slide 11: 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
Slide 12: 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
Slide 13: 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
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: 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
Slide 18: 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 © 2016 Deutsche Wohnen AG 18