Vonovia Company Presentation.
Vonovia Company Presentation October 18, 2017 Agenda
1 Who we are.
Vonovia Company Presentation October 18, 2017 Page 2 Vonovia. Germanys Leading Residential Real Estate Company.
Management of 353,000 apartments in our possession. 1 million tenants nationwide. 13.5 years average tenure. Average size of apartment ~61m². 8,300 employees (including 600 gardeners and 4,300 craftsmen), 420 trainees. High degree of customer orientation through combination of central management and on-site presence. Innovative services generate affordable added value for the customers. Market leadership with nationwide representation.
Vonovia Company Presentation October 18, 2017 Page 3 as at June 30, 2017 Our Mission. The task we‘re working on.
Vonovia Company Presentation October 18, 2017 Page 4 Our Vision, Our Values. The framework of our actions.
Û Our Vision
Our Values Ù
Vonovia Company Presentation October 18, 2017 Page 5 Our Advantage. Economic Strength.
Listed since 2013. Market capitalization of €16bn.* No. 1 in German industry rankings. No. 2 in Europe. Use of a broad, innovative range of financing structures consisting of equity and external/bonded components. Extensive development potential for the future.
September 2015:Admission to DAX 30
Vonovia Company Presentation October 18, 2017 Page 6 as at June 30, 2017 Our History. More Than 160 Years in the Real Estate Industry.
1848 to 2001 up until 2012 2012 to 2014 since 2015
Further expansion
Merger with GAGFAH. Going public Company renamed Vonovia. IPO in July 2013. Upgrade into DAX 30. Growth and consolidation Inclusion in MDAX. Focus on reputation and Further growth through customer satisfaction Since 2008: Housing with a long acquisitions. as basis of our Consolidation and (debt) tradition corporate strategy. restructuring. Strengthening of customer orientation Implementation of a Rooted in non-profit Expansion into and expansion of value-add business housing construction. Germany’s leading real services. segment and expanding estate company. customer services. Preceeding companies Development of a include Raab Karcher, Establishment of our corporate mission Increase of Veba Immobilien, RWE own craftsmen’s statement. investments. Werkswohnungen, organization. Neighborhood Viterra. development and densification of existing developments.
Vonovia Company Presentation October 18, 2017 Page 7 Our Path. Many Companies Become One.
RWE Werks- DeWAG- Heimbau AG wohnungen Portfolio
conwert
Deutsche Vitus- EWG Viterra AG Annington Portfolio 210
~360 NILEG WoBa … GAGFAH 140 GAGFAH No. of units (in SÜDEWO thou.)
2000 2017
Vonovia Company Presentation October 18, 2017 Page 8 Our Portfolio. On Location Across the Nation.
The vast majority of our apartments is located in approx. 353,000 apartments Germany‘s magnet areas.
Vonovia locations
Cities with above- average population growth (‚Schwarmstädte‘)*
* according to a study by GdW and empirica
Vonovia Company Presentation October 18, 2017 Page 9 as at June 30, 2017 Key Figures for Annual Performance in 2016. 2016 was an extremely successful business year.
FFO 1 in € million 1 EPRA NAV in € million 1
760.8 608.0 + 25% + 22% 17,047.1 13,988.2
2015 2016 Dec. 31, 2015 Dec. 31, 2016 FFO 1 = EBITDA adjusted after interest and taxes NAV = real estate assets without liabilities (simplified)
Monthly in-place rent (like for like) in €/m² Vacancy rate in %
+ 1.8% - 0,3 percentage points 5.82 Upgrading 6.01 2.7 + 1.5% 2.4 Increasing rents
Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2016
Vonovia Company Presentation October 18, 2017 Page 10 Key Figures for the First Half-Year 2017. Figures continuously improving.
FFO 1 in € million 1 EPRA NAV in € million 1
18,702.8 + 18 % 17,047.1 + 7 % 457.7 387.8
H1 2016 H 1 2017 Dec. 31, 2016 June 30, 2017 FFO 1 = EBITDA adjusted after interest and taxes NAV = real estate assets without liabilities (simplified)
Monthly in-place rent (like for like) in €/m² Vacancy rate in %
+0,1 ppt 5.89 6.12 2.8 2.9
June 30 2016 June 30 2017 June 30 2016 June 30 2017
Vonovia Company Presentation October 18, 2017 Page 11 The Management Board.
Rolf Buch Klaus Freiberg Dr. A. Stefan Kirsten Gerald Klinck CEO COO CFO CCO Born in 1965 Born in 1962 Born in 1961 Born in 1969 Academic career: Academic career: History, Academic career: Academic career: Mechanical engineering, social sciences, economics Business management, IT Business management business management Previous positions: Previous positions: Previous positions: Previous positions: Management positions CFO at Metro Cash & CFO GAGFAH, Member of Member of the at Arvato Carry, the management of Management Board at CFO at ThyssenKrupp Deutsche Wohnen Bertelsmann, Chairman of the Management Board at Arvato
Vonovia Company Presentation October 18, 2017 Page 12 Agenda.
2 What we do.
Vonovia Company Presentation October 18, 2017 Page 13 Our Strategy. Reputation and Customer Satisfaction Form a Solid Basis.
Prerequisites: Reputation & customer satisfaction
Improving operating key figures through efficient administration 1 Property management Ongoing investment and above-average maintenance Traditional
Optimizing financing costs through 2 internationally competitive financing Financing 5 Acquisition structure
Added value through active portfolio Continual review and management (tactical acquisitions, integration of suitable 3 Portfolio management sales) portfolios into the existing portfolio Ongoing investment
Increasing customer satisfaction by offering additional housing-related Progressive 4 Value-Add Business services Optimum control of processes and costs
Vonovia Company Presentation October 18, 2017 Page 14 Our Quality Standards. High Investment Volume.
Investments of €792.4m in 2016 Investment volume in € million for modernization and maintenance. 36 €/m² Focus on energy savings, improvement of housing standard 33 €/m² 472.3 Maintenance and prioritizing senior-friendly 355.6 conversions. Modernization, 330.7 320.1 new construction, extra stories Increased significance of modernization at the tenants’ requests, neighborhood development and densification of existing developments.
2015 2016
Vonovia Company Presentation October 18, 2017 Page 15 Our Craftsmen. Insourcing for More Customer Satisfaction.
Approximately 4,300* employees in our craftsmen’s organization responsible for maintenance, repairs and modernizations – on location all across Germany. More craftsmen than any other service provider in the real estate sector. Highest spending of the industry on maintenance. Standardized and innovative processes ensure reliable implementation. Tapping into new areas of activity such as ‘serial construction’.
Vonovia Company Presentation October 18, 2017 Page 16 *as at June 30, 2017 Our Claim to Innovation. New Services for Affordable and Better Housing Conditions.
digit. Energy-efficient Access building upgrades Burglary protection Parking
Power Garden- generation ing E-mobility Apartment Kitchen modernization Smart Industrialized Home Bathroom construction moderni- Parcel station Heating zation Condominium Sub- moderni- administration Metering zation service
Multi- Long-term media Craftsmen’s Energy care services Insur- Marketing ance
In the implementation phase New business In the preparatory/assessment phase
Vonovia Company Presentation October 18, 2017 Page 17 Our Responsibility. Driving Change Through Dialogue and Impetus.
In constructive dialogue with tenants' associations and decision-makers of the housing industry. Active membership in the major industry associations at Group and regional level. Continuous dialogue with representatives of the federal government, federal states and municipalities. Implementation and promotion of holistic neighborhood development projects.
From left to right: CEO Rolf Buch, Federal Minister for the Environment Barbara Hendricks, President of the German Bundestag Dr. Norbert Lammert, Lord Mayor of the City of Bochum Thomas Eiskirch
Vonovia Company Presentation October 18, 2017 Page 18 Our Neighborhoods. New Projects initiated.
Multiplying the experiences of the Eltingviertel/Essen
Hamburg
Berlin
Bielefeld
Dortmund Essen Dresden
Frankfurt
München
Vonovia Company Presentation October 18, 2017 Page 19 Our Contribution to the Solution. New Apartments for Metropolitan Areas.
NewNeubau construction/Densification Serial (modular) construction to reduce costs
Easily adapted to varied needs. Using a unique concept and prefabrication to control costs. Reduced construction costs. Short construction periods. Vertical expansion Conservation of resources during construction. Easy maintenance. Response to skills shortage.
Vonovia Company Presentation October 18, 2017 Page 20 Our Future. New Investment Program issued.
Investment in € million
1,000
for new housing
for improvement of portfolio quality and neighborhood 700 1 ~ 730 ~ development - 7 730 1 5 0
Forecast medium-term 1 part of investment program in the amount of €1bn, planning p.a. dependent on planning permission
Vonovia Company Presentation October 18, 2017 Page 21 Contact.
Vonovia SE Philippstrasse 3 44803 Bochum, Germany
Tel.: +49 234 / 314- 0 www.vonovia.de
Registered office: Düsseldorf HRB 68115, Düsseldorf Local Court Management Board: Rolf Buch (CEO), Klaus Freiberg, Dr. A. Stefan Kirsten, Gerald Klinck Chairman of the Supervisory Board: Prof. Dr. Edgar Ernst
Vonovia Company Presentation October 18, 2017 Page 22 Disclaimer. Statement of Confidentiality
This presentation has been prepared by Vonovia SE and/or its subsidiaries (collectively referred to as ‘Vonovia’) for internal purposes. As a result, it cannot be considered a sufficient or appropriate basis for third-party purposes. This presentation has been prepared solely for informational purposes and is explicitly distributed as confidential information. It may only be used in accordance with the valid legislation, e.g., the regulations governing insider trading. This presentation may not be distributed, published or reproduced, either in full or in part, nor may its content be disclosed to third parties. Upon receipt of this presentation, the recipient declares that they will treat the presentation as confidential and acknowledge the terms and conditions set out below. This presentation contains statements, assumptions, opinions and predictions about the anticipated future development of Vonovia (‘forward-looking statements’) that reproduce various assumptions regarding, e.g., results derived from Vonovia’s current business or from publicly available sources that have not been subject to an independent audit or an in-depth evaluation by Vonovia , and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. They should therefore not be taken as a guarantee for future performance or results , nor do they, furthermore, necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this presentation was provided to the recipient. It is up to the recipient of this presentation to conduct a more detailed analysis of the validity of its forward-looking statements and the underlying assumptions. Vonovia cannot be held liable, on any legal basis, for the forward-looking statements and assumptions materializing. Vonovia excludes any liability, to the full extent permitted by law, for any direct or indirect damage or consequential damage or any penalty incurred by the recipient as a result of the use of the presentation, its contents or with any other link to the presentation. Vonovia does not provide any guarantees or assurances (either explicit or implicit) with respect to the information contained in this presentation or the presentation’s suitability for the recipient's purposes. The fact that this presentation is made available , does not involve any assurance of the information contained herein still being correct after the date of publication. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this presentation or to include subsequent events or circumstances, nor to report inaccuracies that become known after the date of this presentation.
Vonovia Company Presentation October 18, 2017 Page 23