BUWOG GROUP COMPANY PRESENTATION DEUTSCHE BANK GERMAN, SWISS & AUSTRIAN CONFERENCE BERLIN 8 JUNE 2016
HIGHLIGHTS 9M 2015/16
Highlights BUSINESS MODEL AUSTRIA & GERMANY ASSET MANAGEMENT RESIDENTIAL ONLY PROPERTY DEVELOPMENT PROPERTY SALES CASH STRONG BALANCE SHEET (1) 48.2% LTV 2.14% Ø interest rate 15.9 yr Ø maturity 19.21 NAV/share REINVESTMENT DIVIDEND Trading in: VIENNA FRANKFURT WARSAW (1) Based on outstanding financial liabilities as of 31 Jan 2016 3
Highlights UNIQUE BUSINESS MODEL Benefit of combination of Asset Management and Development Stable cash-flows from significant asset portfolio with an established platform with more than 51,000 units Existing development pipeline with significant accretive impact on Recurring FFO in following years Further external growth potential for portfolio and development pipeline Enhancing the value chain by intended development to hold strategy in Germany Favourable financing conditions for portfolio and development by access to mortgage banks and equity and debt capital markets Attractive and unique risk-return product 4
Highlights HIGHLIGHTS 9M 2015/16 Earnings Data 9M 2015/16 9M 2014/15 Results of Asset Management EURmn 103.4 95.6 Results of Property Sales EURmn 27.3 28.0 Results of Property Development EURmn -0.2 11.9 EBITDA adjusted EURmn 112.0 116.2 EBITDA adjusted margin in % 39.4% 39.8% Recurring FFO EURmn 66.0 71.3 Recurring FFO / share EUR 0.66 0.72 Recurring FFO margin in % 25.6% 25.7% Asset and Financial Data 31 Jan 16 30 Apr 15 EPRA Net Asset Value EURmn 1,914.6 1,771.9 EPRA Net Asset Value / share EUR 19.21 17.79 Net financial liabilities EURmn 1,983.3 1.956.6 LTV in % 48.2% 51.0% Ø interest rate in % 2.14% 2.14% Ø maturity in years 15.9 16.9 Portfolio 31 Jan 16 30 Apr 15 Number of units 51,340 51,671 Austria 24,258 25,101 Germany 27,082 26,570 Monthly net in-place rent EUR/sqm 4.91 4.81 Austria EUR/sqm 4.21 4.20 Germany EUR/sqm 5.66 5.51 like-for-like rental growth (1) in % 1.9% 3.2% Austria in % 1.0% 2.9% Germany in % 2.6% 3.4% Fair Value Portfolio EURmn 3,695 3,558 Austria EURmn 2,070 2,093 Germany EURmn 1,624 1,465 Gross Rental Yield (2) in % 5.4% 5.6% Austria in % 4.3% 4.4% Germany in % 6.9% 7.3% Development 31 Jan 16 30 Apr 15 Total investment volume EURmn 1,928 1,362 Units under construction 1,266 844 Development on Balance Sheet EURmn 420.7 280.9 Development margin (9-months) in % 18.4% - (1) Comparison 31 Jan 2016 vs. 31 Jan 2015, as well as 30 Apr 2015 vs. 30 Apr 2014 (2) Annualised rental income in relation to fair value of properties 5
ASSET MANAGEMENT
Asset Management ASSET MANAGEMENT Results in EURmn 9M 2015/16 9M 2014/15 Change Rental revenues 148.5 134.9 10% Operating costs charged to tenants and 3 rd party property management revenues 80.8 78.0 4% Other revenues 0.1 1.3-91% Revenues 229.4 214.2 7% Expenses directly related to investment property -47.2-43.6-8% Operating expenses -78.8-75.1-5% 9 months DGAG and Apollo portfolios contribution in 9M 2015/16 vs. 7 months only in 9M 2014/15 Like-for-like rental increase 1.9% Reduction due to property sales amounting to EUR -1.9mn (834 units sold in 9M 2015/16) Besides the DGAG and Apollo impact expenses directly related to investment properties increased by EUR 1.7mn due to higher maintenance costs. Results of Asset Management 103.4 95.6 8% 120,0 100,0 80,0 9.7 1.7 0.7 95.6 103.4-1.9-2.4 60,0 40,0 20,0 0,0 Results of Asset Management 9M 2014/15 DGAG/Apollo acquisition (1) (1) (2) Rental Increase Property Sales Expenses directly Other related to investment properties Results of Asset Management 9M 2015/16 (1) Excluding DGAG & Apollo portfolios, reflected in separate DGAG & Apollo pillar (2) Other mainly relate to changes in EVB I liabilities (EUR 1mn) 7
Asset Management ASSET MANAGEMENT Development of the Portfolio Portfolio in EURmn 31 Jan 2016 30 Apr 2015 Change Number of units 51,340 51,671-0.6% Total floor area (1,000 sqm) 3,550 3,581-0.9% Fair value (EURmn) 3,695 3,558 3.8% Fair value / sqm (EUR) 1,041 994 4.7% Austria 1,110 1,086 2.2% Germany 964 886 8.8% Annualised in-place rent (EURmn) (1) 200 198 1.1% Gross Rental Yield (2) 5.4% 5.6% -0.2PP Vacancy rate (3) 4.2% 4.2% 0.0PP Number of units slightly decreased by 331 units mainly due to the Property Sales business in Austria, which was partly offset by acquisitions: Dispositions: 834 units in Unit and Block Sales with a fair value of EUR 66mn Acquisitions: 532 units with an average GRY of 6.4% with a fair value of EUR 39mn 9M revaluation result of EUR 153.4mn, thereof EUR 113mn based on CBRE valuation report as of 31 Oct 2015 and EUR 40mn Q3 2015/16 impact based on internal valuation. Revaluation is mainly driven by: yield compression and changes of market rents in the German portfolio (EUR 114.8mn) as well as changes in sales price potentials in Unit Sales in the Austrian portfolio (EUR 38.6mn). 3.800 3.700 3.600 3.500 3.400 3.300 3.200 3.100 3.000 3,558 Fair value 30Apr15-66 39 153 11 Block & Unit Sales Acquisitions Revaluation CAPEX Fair value 31Jan16 3,695 (1) Based on monthly in-place rent (excluding utilities) as of the balance sheet date (2) Annualised in-place rent (based on monthly in-place rent excluding utilities as of the balance sheet date) in relation to fair value (3) Based on sqm 8
Asset Management ASSET MANAGEMENT Optimisation of portfolio Optimisation of portfolio Increase density of existing portfolio Adoption of development to hold strategy in Berlin Opportunistic Block sales to create a more concentrated portfolio Quality enhancement NAV / share growth Acquisitions with clear focus Northern Germany with focus on Berlin Greater Hamburg and Schleswig Holstein area Greater Hannover area growing cities and suburban areas with intact sociodemographic profile, in particular a positive development in rental prices growing households good infrastructure EBITDA / share accretive FFO / share accretive Optimised portfolio with higher contribution to Recurring FFO 9
Asset Management ASSET MANAGEMENT Clear focus on growing cities Clear focus on growing cities and suburban areas with intact socio-demographic profile Household growth rate 2013-2015 Rent development (market) 2011 2025 BUWOG units (2) as % of total Berlin 3.3% 16.8% 10.8% Hamburg 5.2% 4.7% 6.1% Luebeck 0.5% 9.8% 12.2% Kiel 6.2% 10.9% 7.2% Vienna 9.6% ~ 2% (1) 14.0% Federal capitals State capitals and major cities Suburban areas Asset Management Property Sales Property Development (1) Acc. to BWUOG s lfl rental growth guidance (due to subsidised rental regime in Vienna) (2) Cities and suburban area as per 31 Jan 2016 Source: German Federal Office for Statistics, forecast bulwiengesa, IBB research 10
DEVELOPMENT
Development DEVELOPMENT Highlights per 31 Jan 2016 Completion of 126 units during 9M 2015/16; 1,266 units with an investment volume of approx. EUR 406mn are under construction (thereof 787 units in Vienna and 479 units in Berlin) 52 Grad Nord Berlin (under construction) Property Development is being intensified per 9M 2015/16; acquisition of 6 land sites in Vienna and Berlin As of 31 January 2016 the development pipeline of BUWOG Group included approx. 6,540 units with a total investment volume of approx. EUR 1.9bn Skytower Vienna (under construction) Quartier am Pankepark Berlin (completed) Property Development activity as of 31 Jan 2016 844 (1) 690 1,266 Investment value of development projects as of 31 Jan 2016 Vienna EUR 979mn 369 341 126 Total investment volume: EUR 1.9bn Berlin EUR 948mn FY 2014/15 9M 2014/15 9M 2015/16 Completed units (1) As of 30 June 2015 Units under construction 12
Development DEVELOPMENT Results segment split in EURmn Austria Germany Total Sale of real estate inventories 13.2 25.5 38.7 Cost of real estate inventories sold -9.7-21.3-30.9 Other expenses from sale of real estate inventories -0.6-4.0-4.6 Real estate development expenses -2.7-1.8-4.5 Revaluation of properties under construction 0.5 0.0 0.5 Planned completions of major projects in Q4 2015/16: - Sky 6: 44 units - Skytower: 129 units - Gervin & Wilmers: 80 units Results of properties sold and available for sale 0.6 0.0 0.6 Results of Property Development 1.4-1.5-0.2 Austria / Vienna: Result of Property Development in Austria mainly related to the sales of completed projects in FY 2014/15: Linzer Strasse EUR 4.5mn Lindengasse EUR 3.1mn Rosa-Jochmann-Ring EUR 2.6mn Missindorfstraße EUR 2.2mn Sale of a partial land plot in Austria Other expenses also include non-capitalised expenses for projects under construction and projects with a planned construction start in FY 2015/16 and following years as well as a revaluation of development projects (one-off effect of approx. EUR +1mn) Germany / Berlin: The development result in Germany was mainly influenced by the sale of the following development projects: Legacy project Quartier am Pankepark project with 52 units was sold for EUR 11.8mn via a global exit with terms already agreed before acquisition Additionally, 26 units of the Westendpark project in 3 houses were sold for EUR 12mn Other expenses also include non-capitalised expenses for projects under construction, projects with a planned construction start in FY 2015/16 and following years as well as costs of land sites acquisitions. 13
Development PIPELINE INCREASE Development is being intensified per 31 Jan 2016 and onwards (1) Project / Location Existing development projects as per 30 Apr 2015 No of units Net of construction progress and sale -126 Changes in project planning -74 Balance Sheet EURmn 5,106 281 61 Acquisitions 9M 2015/16 Pfeiffergasse, Vienna 186 "Lichtenhain", Berlin-Lichtenberg 209 "Spreequartier", Berlin-Treptow-Köpenick 792 79 Harzer Straße, Berlin-Neukölln 202 Closed per 31 Jan 2016 1,389 79 Development projects on B/S as per 31 Jan 2016 6,295 421 Acquisitions not on B/S as per 31 Jan 2016 Schulzestraße, Berlin-Pankow 45 Heidestraße, Berlin-Mitte 202 Mariendorfer Weg, Berlin-Neukölln 566 Total acquisitions not on B/S as per 31 Jan 2016 813 Total development projects 7,108 "Spreequartier", Berlin-Treptow-Köpenick Acquisitions: 7 land plots for a total of EUR 131mn (corresponding to EUR 690 per sqm) Acquisition of 6 land plots in Berlin Acquisition of one land plot in Vienna Mariendorfer Weg, Berlin-Neukölln Targeted additional approx. 2,202 units with a total investment volume of approx. EUR 723mn (1) March 2016 14
Development DEVELOPMENT PROJECTS Progress of Development Projects as per March 2016 as of March 2016 No. of projects No of units Floor area (in sqm) Vienna Currently under construction 12 787 68,403 234 Planned construction start in FY2015/16 0 0 0 0 In planning stage (construction start from FY2015/16 22 2,672 226,035 687 Land reserve 4 261 21,732 59 Total Vienna 38 3,720 316,170 979 Berlin Currently under construction 4 479 47,192 172 Planned construction start in FY2015/16 1 209 17,178 65 In planning stage (construction start from FY2015/16 8 2,700 227,498 895 Land reserve 0 0 0 0 Investment volume in EURmn Total Berlin 13 3,388 291,868 1,131 Total Development Pipeline per March 2016: - 7,108 units - 614,957 sqm - EUR 2.1bn investment volume Total as per March 2016 51 7,108 608,038 2,111 (1) The Regattastr. project will be carried out in several phases with different dates for the respective beginning of construction. The first construction phase Seefeld I started in 08/2015. The next partial project Ankerviertel will commence in FY 2016/17. Vienna: 1 construction project with a total of 44 units was completed within 9M 2015/16 12 projects with 787 units are currently under construction The total development pipeline in Vienna and its suburban area comprises 3,720 units with an investment volume of approx. EUR 979mn Berlin: 82 units were completed and transferred within 9M 2015/16 4 projects with 479 units are currently under construction The construction start of 1 project with 209 units is planned in FY2015/16 The total development pipeline in Berlin comprises 3,388 units with an investment volume of approx. EUR 1,131mn 15
Property Development DEVELOPMENT VIENNA Overview of development projects in Vienna as of March 2016 No of projects No of units Floor area (in sqm) Investment volume in EURmn Currently under construction 12 787 68,403 234 Planned construction start in FY 2015/16 0 0 0 0 In planning stage 22 2,672 226,035 687 Land reserves 4 261 21,732 59 Total 38 3,720 316,170 979 Development product mix: 2,737 condominiums 983 subsidised rental apartments (to be developed for own portfolio) Currently under construction Planned construction start in FY2015/16 In planning stage 16
Property Development DEVELOPMENT BERLIN Overview of development projects in Berlin as of March 2016 No of projects No of units Floor area (in sqm) Investment volume in EURmn Currently under construction 4 479 47,192 172 Planned construction start in FY 2015/16 1 209 17,178 65 In planning stage 8 2,700 227,498 895 Land reserves 0 0 0 0 Total 13 3,388 291,868 1,131 Current projects to be developed for immediate sale to retail investors Additions into own portfolio are being considered Currently under construction Planned construction start in FY2015/16 In planning stage 17
Development DEVELOPMENT TO HOLD Development of standing investments in Berlin Strategic rationale Growing the own asset base by creating BUWOG-specific product Being independent from external acquisitions Enhancing the portfolio quality Efficient transaction structure (significantly lower agent fees, commissions and RETT) Producing privatisation opportunities for the future Exemplary Assumptions development to hold calculation: Ankerviertel, 52 Grad Nord Berlin Realisation of a multiple of 22.0 to 22.5 (corresponding to a gross rental yield of ~4.5%) Higher average net in-place rent Lower maintenance costs No capex within the next 10 to 15 years Lower churn rate and therefore lower fluctuation related costs 18
PROPERTY SALES
Property Sales SALES Highlights in EURmn 9M 2015/16 9M 2014/15 Change Revenues Property Sales 97.1 82.5 18% thereof Unit Sales 70.4 67.9 4% thereof Block Sales 26.6 14.6 83% Results as per income statement 27.3 28.0-2% thereof Unit Sales 25.0 25.2-1% thereof Block Sales 2.4 2.8-15% Successful Unit Sales business in 9M 2015/16 with 449 units sold Further portfolio optimisation through Block Sales (385 units) Unit Sales cluster contains 12,900 units with a fair value of EUR 1.5bn Margin on fair value (in%) 41% 54% -13,0 PP Margin on fair value Unit Sales 58% 62% -4,0 PP Margin on fair value Block Sales 10% 26% -16,0 PP Units sold 1,221 Realised average price in EUR per sqm 2,023 2,041 2,118 Margin on fair value in % 604 644 834 1,444 1,629 1,568 59 62 58 223 385 805 839 925 26 26 617 421 449 10 FY 2014/15 9M 2014/15 9M 2015/16 FY 2014/15 9M 2014/15 9M 2015/16 FY 2014/15 9M 2014/15 9M 2015/16 Unit Sales Block Sales Unit Sales Block Sales Total Unit Sales Block Sales 20
Property Sales PROPERTY SALES Property Sales FFO contribution in EURmn Unit Sales Block Sales (1) Total Revenues Property Sales 70.4 26.6 97.1 FV of sold properties -42.7-23.9-66.6 Expenses from property sales -2.7-0.3-3.0 FFO contribution 25.0 2.4 27.4 Unit Sales: 449 units sold with a Recurring FFO contribution of approx. EUR 25.0mn in 9M 2015/16 Block Sales: 385 units sold with a Total FFO contribution of approx. EUR 2.4mn in 9M 2015/16 Positive cash flow from Property Sales (2) in EURmn Unit Sales Block Sales Total Revenues Property Sales 70.4 26.6 97.1 Debt repayment -33.5-14.9-48.4 Expenses from property sales -2.7-0.3-3.0 CF from Property Sales 34.2 11.5 45.6 Within the business area Property Sales the Unit Sales business generated a positive cash flow of EUR 34.2mn in 9M 2015/16 The Block Sales business generated a positive cash flow of EUR 11.5mn in 9M 2015/16 9M 2015/16 contribution to Total FFO of EUR 27.4mn and free cash flow of EUR 45.6mn (1) Excluding valuation effect from non-current assets held for sale EUR -0,1mn (2) Excluding changes in receivables relating to property sales 21
Property Sales PROPERTY SALES High mid & long-term sales potential for approx. 12,900 units Unit Sales in Austria only Long-term income from Unit Sales, primarily to owner-occupiers as a result of tenant fluctuation Planned Unit Sales of approx. 600+ units per year with margins of approx. >50% High contribution to Recurring FFO High free cash flow Block Sales Opportunistic block sales to optimise the portfolio with margins of approx. > 10% Clear regional focus High free cash flow Capital recycling leads to dividend payment &/or capital redeployment into portfolio & developments 22
9M RESULTS - KEY FACTS AND FIGURES
9M Results - Key Facts and Figures INCOME STATEMENT Consolidated income statement in EURmn 9M 2015/16 9M 2014/15 Change Rental revenues 148.5 134.9 10% Results of Asset Management 103.4 95.6 8% Results of Property Sales 27.3 28.0-2% Results of Property Development -0.2 11.9 >-100% Other operating income 6.7 4.9 35% Expenses not directly attributable -24.6-23.0-7% Result of operations 112.7 117.4-4% Other revaluation results 139.9 78.8 78% EBIT 252.6 196.2 29% Financial result -45.4-189.4 76% EBT 207.2 6.7 >100% Income tax expenses -10.6-13.0 18% Deferred tax expenses -33.0 9.6 >-100% Net profit 163.5 3.3 >100% EBITDA adj. (1) 112.0 116.2-4% (1) Results of operations adjusted to account for valuation effects and deferred periods (IFRS 5) in the business area Property Sales (EUR 0.1mn) and Property Development (EUR -0.6mn) and revaluation of properties under construction (EUR -0.5mn) as well as impairment losses/revaluations (EUR 0.3mn) Comments: In previous year s 9M 2014/15 DGAG and Apollo results contributed for 7 months only 9M 2015/16 is mainly driven by one Global Exit in Berlin at low margin due to a legacy project with terms agreed prior to acquisition. While several units, some of which were completed in FY 2014/15, were sold, the ramp up of construction and related cost incurred result in a negative 9M 2015/16 result contribution. 9M revaluation result of EUR 153.4mn, thereof EUR 113mn based on CBRE valuation report as of 31 Oct 2015 and EUR 40mn Q3 2015/16 impact prepared internally. Other revaluation result also includes a negative contribution of EUR 14mn from increased EVB I liability recognition based on a change in Austrian rental law Influenced by non-cash valuation effects (driven by decreasing interest rate). Cash interest expenses amounted to EUR -33mn in 9M 2015/16 compared to EUR -35mn in 9M 2014/15. Deferred tax expenses are largely influenced by fair value valuation of standing investments. 24
9M Results - Key Facts and Figures BALANCE SHEET Consolidated Balance Sheet in EURmn 31 Jan 16 30 Apr 15 Change Investment properties 3,818.4 3,620.8 5% Properties under construction 25.5 14.6 75% Other assets 53.1 43.7 21% Non-current assets 3,896.9 3,679.1 6% Non-current assets held for sale 0.0 5.8-100% Inventories 271.6 197.6 37% Cash and cash equivalents 138.5 149.2-7% Other current assets (1) 99.0 149.2-34% Current assets 509.1 501.7 1% Total assets (1) 4,406.1 4,180.8 5% Equity 1,621.6 1,524.3 6% Financial liabilities 2,121.9 2,105.4 1% Deferred tax liabilities 192.3 159.3 21% Other non-current liabilities 139.4 122.1 14% Comments: Mainly influenced by revaluation of EUR 153.4mn, Property Sales of EUR -66mn and acquisitions of EUR 39mn Inventories contain development projects with 1,266 units that are currently under construction and 209 units with a planned construction start in FY 2015/16 Driven by negative cash flow (EUR -10.6mn) as the positive operating (EUR 59mn) and investing cash flow (EUR 20.2mn) was offset by negative financing cash flow (EUR -89mn, incl. dividend payment of EUR -68.7mn) Includes ordinary bank loans of approx. EUR 1,460mn and subsidised loans of approx. EUR 673mn (total nominal amount of EUR 2.15bn with a Fair Value of EUR 2.12bn) Other current liabilities (1) 330.9 269.7 23% Total equity and liabilities (1) 4,406.1 4,180.8 5% (1) Change in comparative information: The initial application of IFRIC 21 led to an increase of EUR 3.5mn in trade and other receivables and trade and other liabilities. 25
9M Results - Key Facts and Figures FUNDS FROM OPERATIONS Funds from Operations in EURmn 9M 2015/16 9M 2014/15 Change Net profit 163.5 3.3 >100% Results of Property Sales -27.3-28.0 2% Other financial result 11.8 155.2-92% Fair value adjustments of investment properties -153.9-75.2 >-100% Impairment losses/revaluations 0.3 0.3 7% Deferred taxes 33.0-9.6 >100% Other 13.7-0.1 >100% FFO 41.0 46.0-11% Unit Sales result 25.0 25.2-1% Recurring FFO 66.0 71.3-7% Block Sales result 1) 2.5 3.0-16% Total FFO 68.5 74.2-8% CAPEX -10.8-9.0-20% AFFO 57.7 65.2-12% Recurring FFO / share (in EUR) 0.66 0.72-7% (1) excluding valuation effect from non-current assets held for sale EUR -0.1mn (EUR 0.2mn). Recurring FFO development in EURmn Unit Sales FFO Comments: 66.0 25,0 41,0 71.3 25,2 46,0 9M 2015/16 9M 2014/15 Impact of 9 months DGAG and Apollo consolidation and cyclical property development business Adjustment of non-cash items (mainly negative valuation effects of loans and derivatives totalling EUR -7mn and effects from valuation of loans at amortised cost totalling EUR -5mn) Adjustment of recognition of EVB I liabilities EUR 14mn, received commission for liabilities incurred EUR -3mn, one-off item in connection with a previous acquisition (refund of RETT) EUR -2mn and other one-off expenses (EUR 4mn, thereof EUR 3.4mn reorganisation projects) Impacted by envisaged development completions only in Q4 2015/16 26
9M Results - Key Facts and Figures EPRA NAV Comments 9M 2015/16 EPRA NAV was mainly influenced by the net profit after non-controlling interests, amounting to EUR 162.2mn as well as by the dividend payment (EUR -68.7mn) Adjustment for the fair value valuation effect of derivatives Changes of deferred taxes due to valuation results (investment properties, loans and derivatives) EPRA NAV in EURmn EPRA NAV/share EUR 17.79 Increase by EUR 1.43 EPRA NAV/share EUR 19.21 2.500 2.000 1.500 1,771.9 162.2-68.7 31.8 3.3 12.0 2.1 1,914.6 1.000 500 0 EPRA NAV 30Apr15 Net profit after noncontrolling interests Dividend payment Deferred taxes FV of derivative financial instruments Changes in the FV of inventories Other (1) EPRA NAV 31Jan16 (1) Mainly relating to changes in the fair value of properties owned by BUWOG (EUR 1.1mn) 27
GUIDANCE & OUTLOOK
Guidance & Outlook GUIDANCE CONFIRMED Recurring FFO to approx. EUR 98-100mn for FY 2015/16 Dividend target: EUR 0.69/share 29
Guidance & Outlook EFFICIENCY AND TRANSPARENCY Mid-term efficiency program Integration of DGAG sub-group Transformation of IT-infrastructure to SAP Continued optimisation of cost structure based on benchmarking with Peer Group Improvement of transparency FY 2015/16 reporting to be in line with EPRA guidelines to achieve EPRA gold status Increased transparency in property development reporting BUWOG in ongoing process of transformation for maximisation of Shareholder Value 30
APPENDIX
Appendix STATISTICS OF STANDING INVESTMENT PORTFOLIO AS OF 31 OCTOBER 2015 Number of units Percentage of total units Floor area at period end (sqm) Annualised in-place rent (TEUR)(1) Monthly in-place rent(1) (EUR per sqm) (1) Based on monthly in-place rent (excluding utilities) as of reporting date (2) Based on fair value of standing investments according to CBRE valuation reports as of 31 October 2015 (3) Annualised in-place rent (based on monthly in-place rent excluding utilities as of the reporting date) in relation to fair value (4) Based on sqm (5) More than 50,000 inhabitants and a significant share of the portfolio (6) The immediate catchment area up to about 15 km around federal capitals, state capitals and major cities, as well as Hamburg Fair Value(2) Percentage of (TEUR) total Fair Value Fair Value(2) (EUR per sqm) Net rental yield(3) Federal capitals 11.748 23,0% 921.770 58.210 5,45 1.405.685 38,8% 1.525 4,1% 3,5% Wien 6.755 13,2% 590.082 34.472 5,09 1.019.665 28,1% 1.728 3,4% 4,4% Berlin 4.993 9,8% 331.688 23.738 6,08 386.020 10,6% 1.164 6,1% 1,8% state capitals and major cities (5) 19.467 38,1% 1.260.343 71.219 4,84 1.127.810 31,1% 895 6,3% 2,7% Lübeck 6.276 12,3% 363.659 24.258 5,67 334.038 9,2% 919 7,3% 2,0% Kiel 3.255 6,4% 195.657 13.408 5,78 187.953 5,2% 961 7,1% 1,2% Villach 2.780 5,4% 198.690 8.159 3,50 121.062 3,3% 609 6,7% 2,4% Kassel 1.508 3,0% 107.292 5.219 4,30 69.140 1,9% 644 7,5% 5,6% Braunschweig 1.289 2,5% 77.508 5.176 5,61 74.230 2,0% 958 7,0% 0,7% Graz 1.178 2,3% 88.635 4.098 3,97 92.850 2,6% 1.048 4,4% 3,1% Innsbruck 721 1,4% 52.885 2.309 3,70 72.947 2,0% 1.379 3,2% 1,7% Lüneburg 703 1,4% 51.075 2.988 5,39 41.610 1,1% 815 7,2% 9,5% Salzburg 684 1,3% 45.645 2.171 4,02 65.680 1,8% 1.439 3,3% 1,4% Klagenfurt 572 1,1% 42.624 1.750 3,64 26.430 0,7% 620 6,6% 6,0% Linz 501 1,0% 36.673 1.684 3,96 41.870 1,2% 1.142 4,0% 3,4% suburban areas (6) 8.038 15,7% 564.571 30.602 4,74 532.562 14,7% 943 5,7% 4,7% Hamburg 2.867 5,6% 176.540 11.597 5,52 184.596 5,1% 1.046 6,3% 0,8% Klagenfurt 1.435 2,8% 103.042 4.287 3,75 79.630 2,2% 773 5,4% 7,6% Villach 1.121 2,2% 87.408 3.524 3,78 62.549 1,7% 716 5,6% 11,1% Berlin 529 1,0% 33.987 1.924 5,07 21.180 0,6% 623 9,1% 7,0% Wien 471 0,9% 38.782 1.965 4,40 53.010 1,5% 1.367 3,7% 4,1% Salzburg 450 0,9% 35.275 2.163 5,31 50.870 1,4% 1.442 4,3% 3,8% Graz 425 0,8% 32.064 1.727 4,61 26.692 0,7% 832 6,5% 2,6% Kiel 366 0,7% 28.777 1.991 5,95 23.250 0,6% 808 8,6% 3,1% Innsbruck 243 0,5% 20.930 946 3,81 25.730 0,7% 1.229 3,7% 1,2% Braunschweig 131 0,3% 7.766 478 5,39 5.055 0,1% 651 9,5% 4,8% Rural Areas 11.796 23,1% 787.309 37.082 4,23 559.388 15,4% 711 6,6% 7,1% Rural Areas Austria 7.161 14,0% 507.866 19.726 3,53 341.761 9,4% 673 5,8% 8,4% Rural Areas Germany 4.635 9,1% 279.444 17.356 5,43 217.627 6,0% 779 8,0% 4,7% Total Austria 24.497 48,0% 1.880.599 88.979 4,17 2.080.746 57,4% 1.106 4,3% 5,5% Total Germany 26.552 52,0% 1.653.393 108.134 5,60 1.544.699 42,6% 934 7,0% 2,7% Total 51.049 100,0% 3.533.992 197.113 4,85 3.625.444 100,0% 1.026 5,4% 4,2% Vacancy rate(4) 32
Appendix DEBT STRUCTURE Highlights Structure of amount outstanding by type of financing Average interest rate of 2.14% Financial result 9M 2015/16 is influenced by negative non-cash valuation items of EUR -11mn and negative effects from valuation of loans at amortised cost totalling EUR -5mn ; these items are adjusted within the Recurring FFO calculation Cash interest expenses of EUR -33mn only Subsidised loans 31% Ø interest rate: 1.44% Total amount: EUR 2,150mn Bank loans 69% Ø interest rate: 2.46% Debt Maturity Profile Basis: outstanding liabilities in EURmn p.a. as per 31 January by 01/20017 27 43 54 18 2 37 47 84 9 74 72 70 69 69 70 66 62 55 56 by 01/20018 by 01/20019 by 01/2020 by 01/20201 by 01/2022 by 01/2023 by 01/2024 331 by 01/2025 by 01/2026 152 685 from 02/2026 Key facts & KPIs Total amount EUR 2.2bn LTV 48.2% Ø maturity 15.9 yrs Interest lock in period 13.6 yrs Ø interest rate 2.14% Loan structure Hedged & Fixed interest loans 84% Variable interest loans 16% regular repayment final repayment 33
Appendix REVIEW FINANCIAL RESULT Financial result predominantly influenced by positive non-cash and one-off items (EUR -11.8mn) in EURmn 9M 2015/16 Interest expenses - cash -33.2 FV valuation of derivates -3.3 FV valuation of loans -3.6 Non-cash valuation @ amortised costs -4.6 Other -0.7 Negative non-cash result from valuation of derivatives and financial liabilities (EUR -6.9mn) due to fair value accounting (driven by lower reference interest rate) Negative valuation effect from financial instruments at amortised cost, i.e. in particular non-subsidised loans which are measured at amortised cost rather than fair value Financial result -45.4 thereof non-cash & one-off -11.8 Development of the EUR swap curve 30 April 2015 to 31 January 2016 1,6 Non-cash and one-off items are adjusted within the Recurring FFO calculation 1,2 0,8 0,4 0,0-0,4 29 Jan 2016 31 Oct 2015 30 Apr 2015 34
Appendix FINANCIAL CALENDAR 23 Jun 2016 Morgan Stanley Europe & EEMA Property Conference London 31 Aug 2016 Publication of the Annual Report FY 2015/16 06 08 Sept 2016 EPRA Annual Conference, Paris Financial Calendar 13 14 Sept 2016 Bank of America Merrill Lynch 2016 Global Real Estate Conference, New York 19 21 Sept 2016 Berenberg and Goldman Sachs Fifth Corporate Conference Munich 20 22 Sept 2016 Baader Investment Conference Munich 28 Sept 2016 Publication Q1 Report FY 2016/17 35
Appendix CAPITAL MARKET POSITIONING Comments on BUWOG capital market performance BUWOG vs relevant indices (1) (28 Apr 2014 30 May 2016) BUWOG is included in the following indices: ATX: weighted with 4% IATX: weighted with 24% FTSE EPRA/NAREIT Developed Europe GPR 250 Index VÖNIX Sustainability Index Current share price of EUR 19.53 (as of 30 May 2016) represents 61% (incl. dividends) increase to first trading price on 28 April 2014 23 Oct. 2014 0.69 /share dividend payment (adjustment made on 15 Oct) 20,5 19,5 18,5 17,5 16,5 15,5 14,5 13,5 12,5 11,5 10,5 22 Oct. 2015 0.69 /share dividend payment (adjustment made on 14 Oct) 61% 29% 30% -8% IMMOFINANZ Group s stake BUWOG AG EPRA Developed Europe MDAX ATX Pro Forma Shareholder Structure following potential exercise of the conversion rights Source: Thomson Reuters ¹ Rebased on Buwog 28 Apr 2014 IPO price The investment held by IMMOFINANZ Group was reduced by 10% to 28.6% (March 2016) 2 convertible bonds issued prior to BUWOG s spin-off by IMMOFINANZ AG outstanding entitle bondholders to convert into IMMOFINANZ shares and approx. 7.9mn existing BUWOG shares currently held by IMMOFINANZ Free float 71.4% Total shares 99.8mn IMMOFINANZ Group Convertible bonds 7.9% IMMOFINANZ Group 20.6% 36
Appendix PIPELINE INCREASE Development is being intensified since June 2015 - March 2016 Location No of units Floor area (in sqm) Investment volume in EURmn Pfeiffergasse, 1150 Vienna, Austria 186 10,625 41 Schulzestraße, 13187 Berlin-Pankow, Germany 45 3,619 14 "Lichtenhain", 10317 Berlin-Lichtenberg, Germany 209 17,178 65 Heidestraße, 10557 Berlin-Mitte, Germany 202 14,930 72 "Spreequartier", 12439 Berlin-Treptow-Köpenick, Germany 792 64,200 276 Harzer Straße, 12059 Berlin-Neukölln, Germany 202 20,750 72 Total as per 31 Jan 2016 1,636 131,302 540 Mariendorfer Weg, 12051 Berlin-Neukölln, Germany 566 44,161 183 Total incl. acquisitions after the BS date 2,202 175,463 723 Mariendorfer Weg, Berlin-Neukölln Acquisitions: German-Austrian BUWOG Group continues to move forward with its development projects in Berlin and Vienna and has recently acquired or secured important property plots in both capitals for a total of EUR 131mn (corresponding to EUR 690 per sqm) Acquisition of 6 land plots in Berlin Acquisition of one land plot in Vienna Targeted additional approx. 2,202 units with a total investment volume of approx. EUR 723mn "Spreequartier", Berlin-Treptow-Köpenick 37
Appendix BUWOG AS LEADING DEVELOPER IN BERLIN Successful intensification of the development business in Berlin Ranking per residential floor area in Berlin Residential floor area in 1,000 sqm (1) NCC Buwog Group Groth Gruppe Kondor Wessels CG Gruppe Bauwert Gruppe PROJECT PI Interhomes Home Center Sanus AG Development in Berlin In 2012 BUWOG started its development business in Berlin with the acquisition of a leading Berlin property developer (including projects under construction) Since then, BUWOG has successfully intensified its development business in Berlin, with a current development pipeline of: 13 projects 3,388 units EUR 1,131mn investment volume Due to the constant pipeline increase BUWOG is now already number 2 among the residential property developers in Berlin 0 50 100 150 200 250 300 350 400 completed under construction planning stage (1) Ranking Bulwiengesa (April 2016) 38
BUWOG AG T: +43 1 878 28-1130 E: investor@buwog.com W: www.buwog.com Holger Lueth Managing Director Corporate Finance & Investor Relations T: +43 1 878 28-1203 E: holger.lueth@buwog.com Stock Symbols Frankfurt Stock Exchange: Vienna Stock Exchange: Warsaw Stock Exchange: ISIN: BWO GR BWO AV BWO PW AT00BUWOG001 39