Company presentation 9 monthly figures 2018 November 7, 2018
Company profile - strategy Develop-or-Buy-and-Hold strategy Sustainable financing strategy In-house portfolio management Long-term holding strategy Debt Close contact with our tenants Focus on economically strong South of Germany Portfolio growth through developments and acquisitions Sector focus on logistic/light industry and retail Equity Annuity loans Bonded loans Straight capital increase Mandatory convertible bonds Fast communication and prompt reaction to changes Low vacancy rate High cost efficiency Strong FFO (2017: 1.49 EUR/share) Continuous increase of the NAV (December, 31 2017: 18.58 EUR/share) Sustainable dividend policy (for 2017: 0.60 EUR/share) Page 2
Flexibility in real estate procurement Page 3
Market environment Page 4
Market Environment: Logistics and retail in Germany Gross Domestic Product (GDP) 2017 (EUR bn) Sales-trend Logistics (EUR bn) Logistics EUR 263 bn 228 230 235 253 258 263 269 CAGR: 2.8% GDP EUR 3,277 bn 2012 2013 2014 2015 2016 2017 2018 P Retail EUR 513 bn Sales-trend Retail (EUR bn) 493 478 445 451 458 513 523 CAGR: 2.7% Strong sectors with constant growth rats 2012 2013 2014 2015 2016 2017 2018 P Page 5
Real Estate Portfolio Company Real Estate Portfolio Financials Share Appendix Page 6
Future map Germany Locations VIB Group Number of Properties 108 Source: Prognos AG VIB focuses on the economically strong growth region Southern Germany Company Real Estate Portfolio Financials Share Appendix Page 7
Portfolio activities and pipeline for new developments 2018: Current Development (completed in 2019) Interpark Ingolstadt (27,500 sqm rental area) Densification (completed in 2019) Regensburg (3,500 sqm rental area) In addition ~ 155,000 sqm pipeline for future developments (expected rental area) In greater Augsburg (area ~ 20,000 sqm) In greater Nuremberg (area ~ 9,000 sqm) In greater Ingolstadt (area ~ 46,000 sqm) In greater Munich (area ~ 80,000 sqm) Company Real Estate Portfolio Financials Share Appendix Page 8
Completion of own developments in 2017/2018 2017: Investment-Volume: EUR 31 million Site Tenant Interpark Ingolstadt 1 tenant, fully let Interpark Ingolstadt 1 tenant, fully let Nürnberg (densification) 2 tenants, fully let Net rent p.a.: EUR 2.5 million Rentable area Portfolio transfer 21,000 sqm April 2017 6,800 sqm June 2017 8,500 sqm December 2017 2018: Investment-Volume: EUR 41.3 million Site Tenant Vaihingen/Enz 1 tenant, fully let Interpark Ingolstadt 2 tenants, fully let Schwarzenbruck 2 tenants, fully let Net rent p.a.: EUR 3.4 million Rentable area 11,800 sqm 13,700 sqm 31,000 sqm Portfolio transfer September 2018 September 2018 October 2018 Company Real Estate Portfolio Financials Share Appendix Page 9
Real estate KPIs Development of annualized net rental income, vacany rate and rental area Net rental income by residual term of rental contracts 893 Tsqm 928 Tsqm 1,004 Tsqm 1,043 Tsqm 1,123 Tsqm Up to 1 year 6 % 1 to 3 years 35 % 3 to 5 years 23 % 5 to 7 years 10 % 7 to 10 years 18 % More than 10 years 8 % Average term: 4 years, 10 month (as of 30.06.2018) Efficient portfolio management results in a low vacancy rate Company Real Estate Portfolio Financials Share Appendix Page 10
Real Estate KPIs Share of total net rental income TOP 10 tenants Tenant Segment Share Locations Gartenfachmarkt Dehner Retail 8.9 % 15 Rudolph-Gruppe Logistics/Light Industry 6.9 % 11 Geis Industrie-Service GmbH Logistics/Light Industry 5.6 % 2 Audi AG Logistics/Light Industry 4.3 % 1 Imperial Automotive Logistics GmbH Logistics/Light Industry 3.6 % 1 Loxxess-Group Logistics/Light Industry 3.5 % 2 Continental Automotive GmbH Logistics/Light Industry 3.3 % 2 45.4 % of total net rental income with 40 locations BayWa Bau- und Gartenmärkte Retail 3.3 % 3 Conti Temic microelectronic GmbH Logistics/Light Industry 3.2 % 1 LIV Logistikimmobilienvermietung GmbH Logistics/Light Industry 2.8 % 2 Diversified tenant structure reduces sector and cluster risks Company Real Estate Portfolio Financials Share Appendix Page 11
Real Estate KPIs Sector split based on the annualized net rental income Rental yield by sector (based on market values as of 31.12.2017) 4% 2% 30% 76.3 Mio. 64% Logistics / Light Industry 7.3 % Retail 6.8 % Office 7.4 % Commercial buildings & others 5.4 % (as of 30.09.2018) Average rental yield: 7.09 % (as of 31.12.2017) Focus on logistics and retail leading to attractive rental yield of the portfolio Company Real Estate Portfolio Financials Share Appendix Page 12
Financials Company Real Estate Portfolio Financials Share Appendix Page 13
5-years development - key figures 65.0 Revenue (in EUR million) 79.5 75.1 69.9 83.6 24.8 FFO (in EUR million) 35.8 32.6 28.6 41.2 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Increase in revenue by 29 % to EUR 83.6 million Increase of FFO by 66 % to EUR 41.2 million 35.1 EBT (in EUR million) 38.3 52.8 58.8 64.5 307.6 NAV (in EUR million) 470.1 412.8 360.5 512.5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Increase in EBT by 84 % to 64.5 million Increase in NAV by 67 % to EUR 512.5 million Page 14
5-years development - key figures per share FFO per share in EUR Dividend per share in EUR 1.07 1.13 1.18 1.30 1.49 0.45 0.48 0.51 0.55 0.60 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 NAV per share in EUR 13.88 14.54 15.69 17.05 18.58 2013 2017: FFO per share increased by 39 % NAV per share increased by 34 % Dividende per share increased by 33 % 2013 2014 2015 2016 2017 Continous positive trend of all KPIs Page 15
01.01. Consolidated Income Statement (IFRS) In keur Q3/2018 Q1/2017 2017 Revenues 64,352 62,009 3.8% 83,550 Other operating income 189 148 27.7% 344 Total operating income 64,541 62,157 3.8% 83,894 Change in value of investment properties 7,408 2,870 158.1% 17,380 Expenses for investment properties -10,479-9,632 8.8% -13,775 Personnel expenses -2,777-2,701 2.8% -3,621 Revenue increased by 3.8% due to new investments and indexation Other operating expenses -1,316-1,369-3.9% -1,785 Amortization of intangible assets -230-190 21.1% -271 EBIT 57,147 51,135 11.8% 81,822 Other financial results -65 66-9 Interest expenses (net) -11,696-13,310-12.1% -17,378 EBT 45,386 37,891 19.8% 64,453 Taxes -7,299-5,946 22.8% -10,515 Consolidated net income 38,087 31,945 19.2% 53,938 Adjusted EBT increased by 8.4% from 35,021 keur to 37,978 keur Page 16
Consolidated Balance sheet as of September 30, 2018 In EUR million Assets Equity and liabilities 505 Equity Equity ratio: 41.6% (31.12.2017: 41.9%) Non-current assets 1,178 682 Non-current liabilities Loan-to-Value ratio: 52.2% (31.12.2017: 51.4 %) Current assets 37 28 Current liabilities 1,215 1,215 Solid balance sheet with investment property of around 1.1 billion EUR Page 17
Further KPI s FFO EUR million Q3/2018 Q3/2017 2017 33.2 30.6 +8.5% 41.2 FFO per share EUR 1.20 1.11 +8.5% 1.49 Earnings per share EUR 1.33 1.11 +19.2% 1.87 NAV EUR million 536.3 - +4.6% 512.5 NAV per share EUR 19.45 - +4.6% 18.58 Sustainable growth of company value (NAV) based on FFO increase Page 18
EPRA KPI s EPRA-Earnings EUR million Q3/2018 2017 2016 D 30.5 37.6 32.6 15.4% EPRA-Earnings per share EUR 1.11 1.36 1.18 15.4% EPRA-NAV EUR million 536.3 512.5 470.1 9.0% EPRA-NAV per share EUR 19.45 18.58 17.05 9.0% EPRA-vacancy-rate In % 0.7 0.8 1.3-0.5 pt. EPRA-net-initial yield In % - 6.6 6.6 - EPRA-cost ratio In % - 12.1 12.4-0.3 pt. VIB received Most Improved Award and Gold Award for Annual Report 2017 Page 19
Loans split by expiration of the fixed-interest period Loan amount of EUR 647 million as of September 30, 2018. Average interest rate of 2.36 % as of September 30, 2018 (31.12.2017: 2.55%) Due to ongoing low interest environment, the trend of falling average interest rates is expected to continue Page 20
Guidance for financial year 2018 Guidance 2018 Actual 2017 Revenues EUR 85.0 89.0 million EUR 83.6 million EBT (Earnings before tax) * EUR 48.0 50.5 million EUR 47.1 million *w/o valuation effects and non-recurring items FFO EUR 42.0 44.5 million EUR 41.2 million Continuation of the sustainable and profitable growth path Page 21
Share Page 22
VIB Share Share price since January 1, 2016 (XETRA) Shareholder structure (as of AGM June 2018) EUR 24 23 22 21 20 19 18 17 16 15 14 Jan. 16 Mai. 16 Sep. 16 Jan. 17 Mai. 17 Sep. 17 Jan. 18 Mai. 18 Sep. 18 WKN: 245751 Current number of shares outstanding (as of December 31, 2017): 27,579,779 Average daily trading volume in HY 2018: approx. 24,700 shares Market capitalization as of November 14, 2018: EUR 617.8 million (Xetra closing price: EUR 22.40) Broad investors base and rising market capitalization Page 23
Comparison VIB / DAX / SDAX / EPRA-Germany % 270 DAX SDAX EPRA-Germany VIB (as of November 14, 2018) 220 170 120 70 20 Jan. 08 Jan. 09 Jan. 10 Jan. 11 Jan. 12 Jan. 13 Jan. 14 Jan. 15 Jan. 16 Jan. 17 Jan. 18 The development of the VIB share price in 10 years reflects the sustainability of the business model Page 24
If you have any questions please do not hesitate to contact us Page 25
Dividend / FFO Pay-out ratio dividend/ffo (operating cash flow) 2,1 1,6 1,1 In EUR FFO per share increased by 39% since 2013 0,6 0,1-0,4 2013 2014 2015 2016 2017 Dvidend per share FFO per share Dividend per share increased by 33% since 2013 Arround 40% of FFO payed out as dividend for fiscal year 2017 Continuous dividend growth Page 26
Analyst s Recommendation André Remke 25.09.2018 Baader Bank 25.00 EUR Buy Dr. Georg Kanders 02.11.2018 Bankhaus Lampe 23.00 EUR Hold Kai Klose 26.10.2018 Berenberg 24.75 EUR Buy Herman van der Loos 30.10.2018 Degroof/Petercam 25.50 EUR Buy Emmanuel Valavanis 08.08.2018 Mirabaud 26.00 EUR Buy Stefan Scharff 08.08.2018 SRC Research 24.50 EUR Buy Bernd Janssen 25.09.2018 Victoria Partners 22.70 24.70 EUR Buy Andreas Pläsier 24.08.2018 Warburg Research 26.50 EUR Buy Extensive Coverage Page 27
Consolidated balance sheet as of September 30, 2018 (assets) In keur 30.09.2018 31.12.2017 Change Non-current assets Intangible assets 6 14-57.1% Property, plant and equipment 8,166 8,284-1.4% Investment properties 1,164,192 1,096,724 6.2% Interests in associated companies 5,866 5,276 11.2% Total non-current assets 1,178,230 1,110,298 6.1% Current assets Receivables and other assets 3,985 4,138-3.7% Bank balances and cash in hand 31,448 37,979-17.2% Prepaid expenses 1,348 1,326 1.7% Total current assets 36,781 43,443-15.3% Total assets 1,215,011 1,153,741 5.3% Page 28
Consolidated balance sheet as of September 30, 2018 (equity & liabilities) In keur 30.09.2018 31.12.2017 Change Equity Subscribed capital 27,580 27,580 - Reserves and net retained profits 458,731 438,497 4.6% Cash Flow Hedges/others -2,769-3,985-30.5% Foreign currency translation -63-58 8.6% Non-controlling shareholders share of earnings 21,811 21,321 2.3% Total equity 505,290 483,355 4.5% Non-current liabilities Financial liabilities 626,648 587,296 6.7% Derivative financial instruments 3,367 4,831-30.3% Deferred tax 49,453 45,682 8.3% Pension provisions 2,451 2,288 7.1% Total non-current liabilities 681,919 640,097 6.5% Current liabilities Financial liabilities 20,000 21,135-5.4% Other liabilities 7,802 9,154-14.8% Total current liabilities 27,802 30,289-8.2% Total equity and liabilities 1,215,011 1,153,741 5.3% Page 29