H1/13 INTERIM FINANCIAL REPORT GROWING TOGETHER

H1/13 INTERIM FINANCIAL REPORT DEVELOPING VALUE GROWING TOGETHER

KWG AT A GLANCE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 3.6.213 3.6.212 3.6.211 Revenue in EUR million 22.5 12.7 1.1 Net basic rent in EUR million 15.6 9. 6.9 Funds from operations (FFO) in EUR million 3.4 1.2.2 EBIT in EUR million 12. 26. 7.2 Consolidated net profit in EUR million 5.1 2.4 3.4 STATEMENT OF FINANCIAL POSITION 3.6.213 31.12.212 31.12.211 Property assets in EUR million 429.5 428.9 226.4 Equity in EUR million 177.1 171.8 87.8 Net financial liabilities in EUR million 235.1 175.4 135.7 Total assets in EUR million 442.7 473. 238.8 Loan-to-value (LTV) in % 55.7 57.4 59.9 Equity ratio in % 4. 36.3 36.8 SHARE 3.6.213 3.6.212 3.6.211 Share price in EUR 6.79 4.86 5.8 Number of shares in million 15.9 15.9 1.8 Market capitalisation in EUR million 17.8 77.3 54.9 NNNAV per share in EUR 11.56 9.2 7.64 FFO per share in EUR.21.8.2 PORTFOLIO 3.6.213 3.6.212 3.6.211 Residential and commercial units 9,477 6,812 4,978 Parking spaces 2,575 1,589 1,153 Total space in m² 591,91 42,53 289,371 Vacancy rate in % (core portfolio) 2.8 2.5 4.8 Average rent in EUR per m² (core portfolio) 4.83 4.84 4.83

213 INTERIM FINANCIAL REPORT TABLE OF CONTENTS TO OUR SHAREHOLDERS 2 4 6 Letter to our shareholders KWG s share Highlights CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS 8 1 11 12 14 Consolidated statement of financial position Consolidated statement of comprehensive income Consolidated statement of cash flows Consolidated statement of changes in equity Notes to the consolidated half-year financial statements ADDITIONAL INFORMATION 33 33 Financial calendar 213 Publishing information 1 KWG Interim Financial Report 213 Table of contents

TO OUR SHAREHOLDERS In the first six months of 213 we showed, once again, that not only is the size of our portfolio increasing, but its quality is also improving by the day. This growth forms the basis of our strong earnings for the first half-year of 213. EARNINGS FOR THE FIRST HALF-YEAR CONFIRM BUSINESS MODEL Rental income rose by around EUR 6.6 million in the first six months of 213 to EUR 15.6 million, up by an impressive 73%. This puts us right on track to reach our forecast of net rental income of over EUR 3 million for 213 as a whole. On a like-for-like basis, our existing portfolio also improved measurably. Compared with the first half of 212, our rents per square metre rose by 3.2% to EUR 4.89. Funds from operations (FFO) recorded an even stronger, almost three-fold increase, from EUR 1.2 million in the prior-year period to EUR 3.4 million. The profitable growth and value of the portfolio are likewise reflected in the sale of a housing complex in Wolfsburg in May 213. The sale generated a profit under the German Commercial Code of EUR 3. million. Based on the gross purchase price, this gives a return on equity of 143.1% and a return on investment of 34.3% for KWG. Going forward, we will also make use of opportunities presented by the market to generate profits at attractive prices. We will invest the capital freed up in the expansion and optimisation of our portfolio so as to further boost the operating profitability of the KWG Group. SIGNIFICANT INVESTMENT IN THE PROPERTY PORTFOLIO A very important element of the optimisation of our portfolio is developing the units purchased in December of last year. We have already started renovating the newly acquired properties in Berlin. More than a million euro has been invested in the new Berlin portfolio in the course of reducing the vacancy rate and implementing immediate measures. Here, I would just like to mention that these are highly profitable investments for us and will pay off in just six years. The complete renovation of a listed residential complex in Glauchau is further proof of the success of our restoration efforts. In contrast to a vacancy rate of 95 percent prior to the start of the modernisation, the property is now almost fully let in spite of the fact that we do not expect the renovation to be completed until the fourth quarter of the year. By making these targeted investments in our property holdings, we will increase the value of our portfolio and lay the foundations for further profit growth in the coming years. 2 KWG Interim Financial Report 213 To our shareholders

213 INTERIM FINANCIAL REPORT»Torsten Hoffmann has been a member of the Management Board of KWG Kommunale Wohnen AG since 15 June 21. The experienced finance expert has more than 2 years of experience in financing, accounting and controlling, including 18 years in the property sector.«torsten P. HOFFMANN Member of the Management Board KWG S SHARE OUTPERFORMS BENCHMARK INDEX KWG s share price performance was also encouraging in the first half of 213. While the stock index for German property companies (DIMAX) created by Ellwanger & Geiger closed down two percent, KWG s share posted gains of around three percent in the first half of 213. Our analysts also predict that KWG s share will continue its uptrend. The average published upside target is around EUR 8.4, which shows the appreciation potential of KWG s shares. I would like to thank our shareholders and employees for the trust they place in us. Together let us stay on the successful path we embarked on in the past and continue to create value that will benefit shareholders, tenants and the environment in equal measure. Sincerely, TORSTEN P. HOFFMANN Member of the Management Board 3 KWG Interim Financial Report 213 To our shareholders

KWG S SHARE KWG s share continued its strong performance from 212 in the first half of 213. The share price rose by three percent to EUR 6.79. At the same time, KWG s market capitalisation climbed 4% year-on-year to EUR 17.8 million. PERFORMANCE OF THE KWG SHARE IN 213 (XETRA, indexed) KWG Kommunale Wohnen AG DIMAX* 115 11 15 1 95 9 85 January February March April May June *German property share index, Bankhaus Ellwanger & Geiger KG KWG S SHARE OUTPERFORMS THE BENCHMARK INDEX ONCE AGAIN After showing robust performance in 212, many property shares failed to meet analysts expectations in 213. The stock index for German property companies (DIMAX) published by Ellwanger & Geiger lost around two percent of its value in the first half of 213. By contrast, KWG s shares posted gains of three percent, continuing their upward trend. The Company s share price took a hit at the beginning of the year, reaching its low of EUR 5.95 on 23 January. However, following publication of preliminary figures for the 212 financial year in March, the share demonstrated a strong trend, climbing to its high of EUR 7.41 on 31 May. The debate about tighter restrictions on rental increases fuelled by the upcoming parliamentary elections in Germany generated uncertainty among investors in property shares. In this connection, both the DIMAX and KWG s shares lost some of their value in June, with KWG s shares closing the first half of the year at EUR 6.79. 1st half-year 213 1st half-year 212 Change in % Share price (end of June) 6.79 EUR 4.86 EUR + 4 Market capitalisation 17.8 Mio. EUR 77.2 Mio. EUR + 4 Number of shares 15,881,234 15,881,234 + / High 7.41 EUR 5.8 EUR + 28 Low 5.95 EUR 4.71 EUR + 26 4 KWG Interim Financial Report 213 KWG s share

213 INTERIM FINANCIAL REPORT RISING MARKET CAPITALISATION AND TRADING VOLUMES KWG s market capitalisation improved measurably on the strength of the price gains implemented, rising by around 4% year-on-year to EUR 17.8 million. The trading volume of KWG s share was similarly dynamic. The stock s liquidity increased from just under 8, shares per day in the prior-year period to around 13, shares per day (XETRA). CONWERT IMMOBILIEN INVEST SE INCREASES SHAREHOLDING Conwert Immobilien Invest SE (conwert), which is quoted on the Austrian ATX, announced on 6 March 213 that it had increased its stake in KWG to a total of 75.7%.KWG welcomes the involvement of this core shareholder with the aim of forming a group of leading real estate companies, especially in Germany. ANALYSTS RAISE UPSIDE TARGETS KWG s share was covered in the reporting period by analysts from Close Brothers Seydler and SRC Research. The upside targets published most recently were between EUR 8.3 and EUR 8.5; all of the research reports recommended buy. The Company s triple net asset value (NNNAV) as at 3 June 213 was EUR 11.56 per share. This shows that the share s closing price for the half-year is discounted at around 41%. CLEAR VOTE AT GENERAL MEETINGS KWG s Annual General Meeting was held on 17 June. The Company s proposals for resolution were passed almost unanimously. The vote shows shareholders support for KWG s profitable growth course. KEY KWG SHARE DATA ISIN German securities identification number Number of shares Share capital Free Float Stock exchange segment Designated sponsor Research (Last updated: 3 June 213) DE5227342 522734 15,881,234 15,881,234 EUR 24% Entry Standard KochBank GmbH Wertpapierhandelsbank SRC Research, Close Brothers 5 KWG Interim Financial Report 213 KWG s share

HIGHLIGHTS MODERNISATION ACCORDING TO KWG STANDARDS KWG HAS SET ITSELF THE GOAL OF IDENTIFYING AND ENHANCING TRUE VALUE. FOR THIS REASON, AFTER ACQUIRING AROUND 2,9 ADDITIONAL APARTMENTS IN DECEMBER 212, WE KICKED OFF THE LARGEST RENOVATION PROGRAMME IN THE COMPANY S HISTORY. THE RESULT IS IMPRESSIVE: MANY APARTMENTS IN BERLIN HAVE A SHINY NEW LOOK. BATHROOM BEFORE MODERNISATION BATHROOM AFTER MODERNISATION LIVING ROOM BEFORE MODERNISATION LIVING ROOM AFTER MODERNISATION 6 KWG Interim Financial Report 213 Highlights

213 INTERIM FINANCIAL REPORT KWG STANDARDS We have introduced high quality standards for all comprehensive renovations of our apartments. The KWG standards enable us to not only guarantee a high quality of living but also benefit from economies of scale in the renovations. Where possible, we allow new tenants to choose the flooring or tiles. Tenants who are involved in designing their future apartment are more likely to live in our units for longer. DEVELOPMENT OF THE NEW BERLIN PORTFOLIO Vacancy reduction in 213 in percent January March June September December 1 Increase in rental income in 213 in euros January March June September December 165, 25, RENOVATED APARTMENTS IN BERLIN This year, KWG s Construction Management will renovate all unoccupied apartments in our new portfolio in Berlin at an estimated total cost of around EUR 1.7 million. The letting of the newly renovated units will give a substantial boost to rental income. We assume that as early as December 213 monthly rent will be around 11% higher than prior to the remodelling. If this is the case, the investments will pay for themselves after just six years. FURTHER REFURBISHMENTS PLANNED Next year, we will focus on renovating the recently acquired properties in North Rhine-Westphalia. Planning for the energy-related modernisation of a property in Oberhausen with 12 apartments is already well advanced. We will also start the large-scale renovation of a housing complex in Bochum with 25 units. Through these renovations we will make our housing portfolio even more attractive for tenants and play an active role in the switch to green energy. 7 KWG Interim Financial Report 213 Highlights

CONSOLIDATED STATEMENT OF FINANCIAL POSITION PURSUANT TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) AS AT 3 JUNE 213 ASSETS (EUR) Notes Non-current assets Intangible assets 5.1, 11 Property, plant and equipment 5.2, 11 Investment property 5.3, 11 Investments in associates 5.4 Deferred tax assets 5.5 Total non-current assets 3.6.213 46,665. 766,286.28 425,177,475. 5,13.67 1,82,258.14 427,797,698.9 31.12.212 72,154.85 483,452.1 424,72,475. 5,13.67 2,434,663.49 427,697,759.2 Current assets Inventories 5.6 Properties held for sale 5.7 Trade receivables 5.8 Receivables from affiliated companies 5.8 Tax assets 5.8 Other receivables and assets 5.8 Cash 5.9, 11 Total current assets 29,67. 4,315,319.15 2,556,153.56 6,73.54 66,88.48 3,96,199.34 3,69,79.66 14,886,32.73 98,585. 4,169,96.46 1,397,299.32. 72,736.41 9,28,61.24 3,326,59.79 45,272,369.22 TOTAL ASSETS 442,683,73.82 472,97,128.24 8 KWG Interim Financial Report 213 Consolidated statement of financial position

213 INTERIM FINANCIAL REPORT EQUITY AND LIABILITIES (EUR) Notes Equity Issued capital 5.1 Capital reserves 5.1 Retained earnings 5.1 Market valuation reserve 5.1 Consolidated net retained profits 5.1 Equity before non-controlling interests Equity attributable to non-controlling interests 5.1 Total equity 3.6.213 15,881,234. 65,31,286.61 3,879,29.9 596,615.5 85,81,578.7 17,5,512.27 7,54,681.4 177,6,193.67 31.12.212 15,881,234. 65,31,286.61 3,841,788.71 727,765.8 8,932,733.79 164,959,277.31 6,823,63.51 171,782,97.82 Special items Contributions related to the implementation of the capital increase 5.11 Share premium related to the implementation of the capital increase 5.11 Special items, total 325,859. 1,955,154. 2,281,13. 325,859. 1,955,154. 2,281,13. Non-current borrowings Non-current financial liabilities 5.12 Deferred income 5.13 Provisions for pensions 5.14 Non-current trade payables 5.15 Deferred tax liabilities 5.16 Non-current borrowings (third-party interest in commercial partnerships) 5.17 Non-current liabilities, total 22,148,634.4 6,898,23.94 1,73,84. 863,24.55 16,298,714.9 66,38.28 245,978,4.9 159,27,329.3 7,77,441.42 1,762,486. 915,98.67 15,835,34.73 65,717.98 184,863,99.1 Current borrowings Current financial liabilities 5.18 Deferred income 5.18 Current trade payables 5.18 Current tax liabilities 5.18 Other current liabilities 5.18 Current borrowings, total 11,725,711.51 228,719.14 1,78,378.8 468,358.7 3,233,351.73 17,364,519.25 16,157,488.15 225,653.61 4,285,652.1 299,217.95 93,74,25.51 114,42,217.32 TOTAL EQUITY AND LIABILITIES 442,683,73.82 472,97,128.24 9 KWG Interim Financial Report 213 Consolidated statement of financial position

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME PURSUANT TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE PERIOD FROM 1 JANUARY TO 3 JUNE 213 EUR Notes Revenue 4.1 Income from the fair value measurement of investment property 4.2, 11 Other operating income 4.3 Cost of materials 4.4 Staff costs a) Wages and salaries 4.5 b) Social security and retirement benefit costs 4.5 Depreciation and amortisation 4.6, 11 Expenses related to investment property 4.7 Other operating expenses 4.8 Other interest and similar income Interest and similar expenses 5.12, 5.14, 5.18 Profit attributable to non-controlling interests 4.9 Result from ordinary activities Income taxes 4.1 Other taxes 4.11 1.1.-3.6.213 22,512,732.77 3,665,72.1 68,975.1 7,21,281.97 1,652,76.81 294,594.14 14,95.34 2,715,48.26 2,852,94.5 2,125.23 4,744,815.4 59.3 7,285,652.66 1,41,486.18 743,717.78 1.1.-3.6.212 12,723,1.32 8,228,33.93 13,77,16.58 4,172,479.56 1,346,816.16 163,429.75 11,12.62 1,336,3.32 1,49,28.15 9,694.82 3,632,72.31 6,592.62 22,49,511.16 1,66,78.6 381,326.27 CONSOLIDATED NET PROFIT FOR THE PERIOD 5,14,448.7 2,422,16.29 Actuarial gains/losses Actuarial gains before taxes 5.14 Deferred taxes on actuarial gains Actuarial gains after taxes Non-reclassifiable gains/losses Cash flow hedges Changes in the fair value of hedging instruments 4.12 Deferred taxes on changes in the fair value of hedging instruments Changes in the fair value of hedging instruments after taxes Reclassifiable gains/losses 23,388. 3,71.15 19,686.85 19,686.85 155,86.71 24,656.41 131,15.3 131,15.3.... 85,111.76 13,468.94 71,642.82 71,642.82 TOTAL COMPREHENSIVE INCOME 5,291,285.85 2,35,463.47 Consolidated net profit for the period attributable to: Non-controlling interests Investors in the parent 262,64.42 4,877,844.28 35,7.78 2,386,45.51 Total comprehensive income attributable to: Non-controlling interests Investors in the parent 264,649.88 5,26,635.97 35,7.78 2,314,762.69 Earnings per share (basic and diluted) 7..3 1.59 1 KWG Interim Financial Report 213 Consolidated statement of comprehensive income

CONSOLIDATED STATEMENT OF CASH FLOWS PURSUANT TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FROM 1 JANUARY TO 3 JUNE 213 (in TEUR) Notes 5.9, 11 1.1.-3.6.213 1.1.-3.6.212 1. Consolidated profit (including non-controlling interests) before income taxes 6,542 22,29 2. Depreciation and amortisation 15 11 3. Other non-cash income 241 13,71 4. Gain (-) / loss (+) from the disposal of property, plant and equipment 824 56 5. Interest and similar income 2 1 6. Interest expense 4,745 3,633 7. Loss (+)/gain ( ) from the fair value measurement of investment property 3,666 8,228 8. Increase ( )/decrease (+) in inventories, trade receivables and other assets not attributable to investing or financing activities 263 48 9. Increase (+)/decrease ( ) in trade payables and other liabilities not attributable to investing or financing activities 2,61 197 1. Interest received 2 1 11. Interest paid 4,414 3,499 12. Cash flow from operating activities 1,571 353 13. Proceeds from the sale of property, plant and equipment including investment property (+) 11,193 79 14. Payments for the acquisition of shares in the subsidiary Barmer Wohnungsbau Aktiengesellschaft less acquired cash 514 18,259 15. Payments for investments in intangible assets and property, plant and equipment ( ) 367 39 16. Payments for investments in investment property ( ) 9,535 1,657 17. Payments for investments in other non-current assets ( ) 4,315 18. Cash flow from investing activities/apartment sales 84,538 19,876 19. Income from the issue of share capital (+) 3,577 2. Proceeds from the capital increase less payments for costs directly attributable to the capital increase (+) 14,227 21. Proceeds from taking up loans (+) 68,447 13,1 22. Cash payments for the redemption of loans ( ) 12,116 1,59 23. Cash flow from financing activities 56,331 29,35 24. Net change in cash funds 26,636 9,782 25. Cash funds at beginning of period 3,327 3,583 26. Cash funds at end of period 3,691 13,365 11 KWG Interim Financial Report 213 Consolidated statement of cash flows

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY PURSUANT TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE PERIOD FROM 1 JANUARY TO 3 JUNE 213 (in TEUR) Notes 5.1 Issued capital Capital reserves Retained earnings AS AT 31.12.211 1,85 4,887 2 Net profit/loss (first half of 212) Changes in value recognised directly in equity TOTAL COMPREHENSIVE INCOME Proceeds from the issue of share capital 3,576 15,2 Withdrawals for transaction costs 819 Acquisition of Barmer Wohnungsbau Aktiengesellschaft AS AT 3.6.212 14,381 55,268 2 Net profit/loss (second half of 212) Changes in value recognised directly in equity TOTAL COMPREHENSIVE INCOME Proceeds from the issue of share capital 1,5 9,925 Withdrawals for transaction costs 162 Acquisition of Barmer Wohnungsbau Aktiengesellschaft Increase in the majority interest in Barmer Wohnungsbau Aktiengesellschaft 3,84 Withdrawals by non-controlling interests AS AT 31.12.212 15,881 65,31 3,842 Net profit/loss (first half of 213) Changes in value recognised directly in equity 17 TOTAL COMPREHENSIVE INCOME 17 Proceeds from the issue of share capital Withdrawals for transaction costs Increase in the majority interest in Barmer Wohnungsbau Aktiengesellschaft 2 Withdrawals from reserves AS AT 3.6.213 15,881 65,31 3,879 12 KWG Interim Financial Report 213 Consolidated statement of changes in equity

213 INTERIM FINANCIAL REPORT Market valuation reserve Consolidated net retained profits Equity before noncontrolling interests Non-controlling interests Consolidated equity 613 36,688 87,769 3 87,772 2,386 2,386 36 2,422 71 71 71 71 2,386 2,315 36 2,351 18,776 18,776 819 819 8,89 8,89 684 57,74 126,41 8,929 134,97 23,859 23,859 2,216 26,75 44 44 44 44 23,859 23,815 2,216 26,31 11,425 11,425 162 162 26 26 3,84 4,34 5 7 7 728 8,933 164,959 6,824 171,783 4,878 4,878 262 5,14 131 148 3 151 131 4,878 5,26 265 5,291 2 34 14-597 85,811 17,5 7,55 177,6 13 KWG Interim Financial Report 213 Consolidated statement of changes in equity

SUPPLEMENTARY NOTES TO THE HALF-YEARLY REPORT PURSUANT TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE PERIOD FROM 1 JANUARY TO 3 JUNE 213 1. GENERAL DISCLOSURES KWG Kommunale Wohnen AG ( KWG AG ), domiciled in Alstertor 9, Hamburg, Germany, is the parent of the KWG Group. The Company is a stock corporation under German law that is listed in the Entry Standard of the Frankfurt/Main Stock Exchange. The KWG Group s business activities primarily comprise the acquisition, construction and sale of residential property; investments in property companies, especially not-for-profit, and collective housing development companies; as well as rental and management of its own properties. The business of renting the Company s properties is not subject to any material seasonal or economic fluctuations. The condensed interim consolidated financial statements of KWG AG as at 3 June 213 have been prepared in accordance with the International Financial Reporting Standards (IFRS) in compliance with IAS 34 (Interim Financial Reporting). These condensed interim consolidated financial statements must be read in the context of the IFRS consolidated financial statements issued by the Company for the 212 financial year. Various items of information have been omitted from the interim financial statements or have been presented in condensed form. We nevertheless believe that the consolidated financial statements as at 31 December 212 in conjunction with this information provide a true and fair view of the Group s financial position, cash flows and financial performance. The condensed interim consolidated financial statements were not subjected to a review. The euro is the Company s reporting and functional currency. There was no need for currency translation as all Group companies are active solely in Germany. All figures are stated either in EUR or in thousand euros (TEUR). The comparative figures in the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows are shown in accordance with IAS 34.2. In some cases, estimates and assumptions made in these interim consolidated financial statements affect the amount and recognition of assets, liabilities, income, expenses and contingent liabilities in the consolidated statement of financial position. Actual values may deviate from these estimates and assumptions. As changes are taken into account at the time more detailed knowledge becomes available, all assumptions and estimates are based on the facts known as at the reporting date. The results achieved in the first six months of the 213 financial year do not necessarily allow forecasts to be made regarding the further development of business. 2. BASIS OF CONSOLIDATION In addition to the parent company, all entities that KWG AG controls, indirectly or directly within the meaning of IFRS 1.7, are fully consolidated in the interim consolidated financial statements. In all cases, control of a subsidiary is exercised through a voting right majority. 14 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT On 3 June 213, KWG AG had a total of 3 domestic subsidiaries (31 December 212: 3): KWG Grundbesitz I Verwaltungs GmbH, Hamburg KWG Grundbesitz CI GmbH & Co. KG, Hamburg KWG Grundbesitz CII GmbH & Co. KG, Hamburg KWG Grundbesitz CIII GmbH & Co. KG, Hamburg KWG Grundbesitz CIV GmbH & Co. KG, Hamburg KWG Grundbesitz CV GmbH & Co. KG, Hamburg KWG Grundbesitz CVI GmbH & Co. KG, Hamburg KWG Grundbesitz CVII GmbH & Co. KG, Hamburg KWG Grundbesitz CVIII GmbH & Co. KG, Hamburg KWG Grundbesitz III GmbH, Hamburg Barmer Wohnungsbau Grundbesitz I GmbH, Hamburg (formerly: KWG Grundbesitz IV GmbH, Hamburg) Barmer Wohnungsbau Grundbesitz II GmbH, Hamburg (formerly: KWG Grundbesitz V GmbH, Hamburg) KWG Grundbesitz VI GmbH, Hamburg KWG Grundbesitz VII GmbH, Hamburg KWG Grundbesitz VIII GmbH, Hamburg KWG Grundbesitz IX GmbH, Hamburg KWG Grundbesitz X GmbH, Hamburg KWG Grundbesitz XI GmbH, Hamburg KWG Grundbesitz XII GmbH, Hamburg KWG Grundbesitz XIII GmbH, Hamburg KWG Grundbesitz XIV GmbH, Hamburg Barmer Wohnungsbau Grundbesitz III GmbH, Hamburg (formerly: KWG Grundbesitz XV GmbH, Hamburg) Barmer Wohnungsbau Grundbesitz IV GmbH, Hamburg (formerly: KWG Grundbesitz XVI GmbH, Hamburg) KWG Immobilien GmbH, Hamburg KWG Wohnwert GmbH, Glauchau Barmer Wohnungsbau Aktiengesellschaft, Wuppertal HvD I Grundbesitzgesellschaft mbh, Hamburg Viva I Immobilien u. Verwaltungs GmbH, Hamburg Siedlungs- und Wohnhausgesellschaft Sachsen Gesellschaft mit beschränkter Haftung, Glauchau Hainichener Wohnungsgesellschaft mit beschränkter Haftung, Hainichen Issued capital / limited partner capital EUR 25,. 35,3. 5,. 6,. 1,. 1,. 1,. 1,. 1,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 25,. 3,. 52,. 25,. 25,. 565,. 3,4,91.1 Share in capital in % 1. 99.9 1. 95.41 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 9. 89.61 1. 1. 1. 1. In all cases, the reporting date for the interim financial statements of the consolidated companies corresponds to the reporting date of the interim consolidated financial statements (3 June). 15 KWG Interim Financial Report 213 Notes

3. SIGNIFICANT CONSOLIDATION AND ACCOUNTING POLICIES The financial statements of the consolidated entities for the first half-year are based on uniform consolidation and accounting policies. With the exception of the amended IAS 1 Presentation of Financial Statements and IAS 19 Employee Benefits, the consolidation and accounting policies applied correspond to those applied in the last set of consolidated financial statements for the 212 financial year. We published a detailed description of the policies applied in our notes to the consolidated financial statements for the 212 financial year. Due to the amendment of IAS 1, the statement of comprehensive income was revised with respect to the presentation of items of other comprehensive income. The amended standard requires the items recognised in other comprehensive income to be shown separately. A distinction must be made between line items that will not be reclassified subsequently to profit or loss and line items that will be reclassified subsequently to profit or loss when specific conditions are met. The tax effects resulting from the respective matter must also be shown separately for these two groups. KWG AG has adjusted the presentation of the statement of comprehensive income due to the amendment of IAS 1. The other amendments to IAS 1 have no effect on the presentation of the Group s financial position, cash flows and financial performance. Actuarial gains or losses arising from the difference between the estimated and the actual defined benefit obligation at year-end, which were recognised immediately in profit or loss in the previous year, are now recognised directly in other comprehensive income in accordance with the amendment of IAS 19 Employee Benefits. A discounting rate of 3.3% (31 December 212: 3.1%) was applied to provisions for pensions as at 3 June 213. All other accounting standards to be applied for the first time in the 213 financial year do not have a significant impact on the Group s financial position, cash flows and financial performance. 4. DISCLOSURES ON SELECTED ITEMS IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4.1 REVENUE REVENUE 1.1.-3.6.213: EUR 22,512,732.77 (1.1.-3.6.212: EUR 12,723,1.32) (in TEUR) Actual Rent and other revenue Revenue, apportionable charges TOTAL H1 213 15,63 6,883 22,513 H1 212 9,42 3,681 12,723 16 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT Revenue concerns income from the rental of investment property and property held for sale. The increase is due mainly to the recognition of revenue of Barmer Wohnungsbau Aktiengesellschaft, Wuppertal, over a period of 6 months (comparative period: 2 months) as well as to rental income generated from the Tower properties that were acquired in late December 212. 4.2 INCOME FROM THE FAIR VALUE MEASUREMENT OF INVESTMENT PROPERTY INCOME 1.1.-3.6.213: EUR 3,665,72.1 (1.1.-3.6.212: EUR 8,228,33.93) (in TEUR) Net gains from the adjustment of the fair value Net losses from the adjustment of the fair value TOTAL H1 213 9,217 5,551 3,666 H1 212 9,142 914 8,228 4.3 OTHER OPERATING INCOME OTHER OPERATING INCOME 1.1.-3.6.213: EUR 68,975.1 (1.1.-3.6.212: EUR 13,77,16.58) (in TEUR) Insurance compensation payments Income from dunning and court costs passed on Income from the partial remission of KfW debt after meeting the grant requirements Income from the reversal of deferred income Income from the reversal of provisions and valuation allowances under German commercial law Other non-cash income Income from written off receivables Gains from the sale of investment property Income from the recognition through profit and loss of negative goodwill from accounting for the acquisition of Barmer Wohnungsbau Aktiengesellschaft, Wuppertal Income from billing operating costs Other TOTAL H1 213 139 129 126 115 39 37 16 9 71 681 H1 212 77 84 67 7 23 4 1 13,4 334 61 13,77 4.4 COST OF MATERIALS COST OF MATERIALS 1.1.-3.6.213: EUR 7,21,281.97 (1.1.-3.6.212: EUR 4,172,479.56) The cost of materials comprises maintenance fees pursuant to the German Home Ownership Act (Wohnungs eigentumsgesetz WoEigG) as well as allocable energy costs and other operating costs relating to the properties. 17 KWG Interim Financial Report 213 Notes

4.5 STAFF COSTS STAFF COSTS 1.1.-3.6.213: EUR 1,947,354.95 (1.1.-3.6.212: EUR 1,51,245.91) As at 3 June 213, the Group had 65 employees (of which 19 were part-time staff). As at the 3 June 212 comparative date, the Group had 55 employees including the Management Board (of which 2 were part-time staff). 4.6 DEPRECIATION AND AMORTISATION DEPRECIATION AND AMORTISATION 1.1.-3.6.213: EUR 14,95.34 (1.1.-3.6.212: EUR 11,12.62) (in TEUR) Intangible assets Property, plant and equipment TOTAL H1 213 34 71 15 H1 212 58 52 11 4.7 EXPENSES RELATED TO INVESTMENT PROPERTY EXPENSES RELATED TO INVESTMENT PROPERTY 1.1.-3.6.213: EUR 2,715,48.26 (1.1.-3.6.212: EUR 1,336,3.32) (in TEUR) Regular maintenance Administrator fees Court and litigation costs Letting commission Renovation expenses caused by fluctuation Other TOTAL H1 213 1,599 473 186 115 14 238 2,715 H1 212 964 69 18 195 1,336 18 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT 4.8 OTHER OPERATING EXPENSES OTHER OPERATING EXPENSES 1.1.-3.6.213: EUR 2,852,94.5 (1.1.-3.6.212: EUR 1,49,28.15) (in TEUR) Losses from the sale of investment property Finance costs Legal and consulting costs Occupancy expenses Experts fees, costs of preparing and auditing financial statements Postal costs, telephone, office supplies, courier Investor relations Vehicle costs Travel and hospitality expenses IT, further training and maintenance costs Compensation of Supervisory Board members Insurance, contributions and other charges Annual reports Unsuccessful acquisitions Other TOTAL H1 213 836 557 35 133 13 128 118 95 73 71 6 55 39 28 2,853 H1 212 56 37 135 119 8 73 134 93 12 43 53 37 57 311 16 1,49 4.9 PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS PROFIT ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 1.1.-3.6.213: EUR 59.3 (1.1.-3.6.212: EUR 6,592.62) This is the share in the profit or loss that is attributable to non-controlling interests in commercial partnerships. 4.1 INCOME TAXES INCOME TAXES 1.1.-3.6.213: EUR 1,41,486.18 (1.1.-3.6.212: EUR 1,66,78.6) The income tax expense of TEUR 1,41 (previous year: TEUR 1,66) mainly concerns deferred taxes. The expense not related to deferred taxes is TEUR 334 (previous year: TEUR 15). Both in the comparative period and the reporting period, the deferred tax expenses are due to the temporary differences between the amounts shown in the statement of financial position and the deviating amounts recognised for tax purposes as well as the use and/or usability of tax loss carryforwards. 19 KWG Interim Financial Report 213 Notes

A total of TEUR 1,41 (previous year: TEUR 1,66) in income taxes for the reporting period are derived as follows from an expected income tax expense that would have resulted from application of the statutory income tax rate applicable to the parent company to profits before taxes. As before, a corporation tax rate of 15 percent plus a solidarity surcharge of.825 percent (5.5 percent of 15 percent), as well as a trade tax rate of 14 percent (average assessment rate: 4 percent), are used to that end. The reconciliation is shown in the following table: (in TEUR) Earnings before income taxes Anticipated income tax expense (tax rate: 29.825%) Trade tax exemption for property companies Subtotal Negative goodwill Other differences (effects from loss carryforwards, capital increases, measurement of pension provisions etc.) TOTAL H1 213 6,542 1,951 919 1,32 369 1,41 H1 212 22,28 6,57 3,84 3,486 2,58 178 1,66 4.11 OTHER TAXES OTHER TAXES 1.1.-3.6.213: EUR 743,717.78 (1.1.-3.6.212: EUR 381,326.27) (in TEUR) Property tax Vehicle tax Other TOTAL H1 213 737 2 5 744 H1 212 354 2 25 381 4.12 CHANGES IN THE FAIR VALUE OF HEDGING INSTRUMENTS CHANGES IN THE FAIR VALUE OF HEDGING INSTRUMENTS 1.1.-3.6.213: EUR 155,86.71 (1.1.-3.6.212: EUR 85,111.76) The Company has entered into an interest rate hedge to hedge against fluctuations in future cash flows. The resulting fluctuations in value are recognised directly in equity. 2 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT 5. DISCLOSURES ON SELECTED ITEMS IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION 5.1 INTANGIBLE ASSETS INTANGIBLE ASSETS 3.6.213: EUR 46,665. (31.12.212: EUR 72,154.85) (in TEUR) Balance on 1 January 213/1 January 212 Additions Additions from change in the basis of consolidation Depreciation and amortisation Balance on 3 June 213/31 December 212 3.6.213 72 8 8 33 47 31.12.212 125 34 22 181 19 72 5.2 PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT 3.6.213: EUR 766,286.28 (31.12.212: EUR 483,452.1) (in TEUR) Balance on 1 January 213/1 January 212 Additions Additions from change in the basis of consolidation Disposals Depreciation and amortisation Balance on 3 June 213/31 December 212 3.6.213 484 358 5 837 71 766 31.12.211 325 17 171 63 119 484 5.3 INVESTMENT PROPERTY INVESTMENT PROPERTY 3.6.213: EUR 425,177,475. (31.12.212: EUR 424,72,475.) The changes in the investment property are shown in the statement of changes in non-current assets. These properties are subject to restrictions on disposal that take the form of real property liens in amounts corresponding to both the current and the non-current financial liabilities. The investment property mainly concerns residential property that has been let. Upon acquisition, the investment property is capitalised at cost including transaction costs. It is measured at the fair value as of the reporting date. 21 KWG Interim Financial Report 213 Notes

The fair value of investment property that can be expected to vary significantly in value is determined based on the appraisal of independent experts. These experts possess the requisite professional qualifications and current experience regarding both the location and type of the property to be appraised. As at 3 June 213, this affects the portfolio in the amount of TEUR 425,177 (31 December 212: TEUR 424,72) after remeasurement. The fair value of the investment property developed as follows based on the measurement: (in TEUR) Balance on 1 January 213/1 January 212 Additions from company acquisitions Additions from portfolio acquisitions and other additions Disposals from sales Net gains from the adjustment of the fair value Net losses from the adjustment of the fair value Balance on 3 June 213/31 December 212 3.6.213 424,72 6,821 1,12 9,217 5,551 425,177 31.12.212 226,388 69,212 89,55 1,988 41,612 27 424,72 The additions from company acquisitions (TEUR 69,212) in the previous year concerned property in Wuppertal of Barmer Wohnungsbau Aktiengesellschaft, Wuppertal. The additions from portfolio acquisitions and other additions (TEUR 6,821) mainly concern extensive renovation work on various properties and retroactive acquisition costs related to property bought in previous years. Disposals resulted from the sale of two properties, specifically property from the portfolio of Hainichener Wohnungsgesellschaft mit beschränkter Haftung, Hainichen, and the property in Wolfsburg. Both properties were sold as part of the strategic portfolio streamlining. Property held as hereditary building rights is subject to long-term leasehold contracts with terms until 227. 5.4 INVESTMENTS IN ASSOCIATES INVESTMENTS IN ASSOCIATES 3.6.213: EUR 5,13.67 (31.12.212: EUR 5,13.67) This item concerns 2% of the shares in Wuppertaler Quartierentwicklungs GmbH, Wuppertal. 5.5 DEFERRED TAX ASSETS DEFERRED TAX ASSETS 3.6.213: EUR 1,82,258.14 (31.12.212: EUR 2,434,663.49) 22 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT The deferred tax assets mainly arise from the recognition of deferred taxes on tax loss carryforwards. The loss carryforwards are generally available for an indefinite period of time. 5.6 INVENTORIES INVENTORIES 3.6.213: EUR 29,67. (31.12.212: EUR 98,585.) This concerns stocks of heating oil and liquid gas. 5.7 PROPERTIES HELD FOR SALE PROPERTIES HELD FOR SALE 3.6.213: EUR 4,315,319.15 (31.12.212: EUR 4,169,96.46) This item concerns the KWG Group s properties held for sale. The properties are located in Wuppertal. In accordance with IAS 2, they are recognised at the lower of cost and net realisable value. They are recognised at cost as at 3 June 213. No write-downs to the lower net realisable value were necessary. 5.8 RECEIVABLES AND OTHER ASSETS RECEIVABLES AND OTHER ASSETS 3.6.213: EUR 6,589,936.92 (31.12.212: EUR 1,678,96.97) (in TEUR) Trade receivables Receivables from affiliated companies Tax assets Other current receivables and assets TOTAL 3.6.213 2,556 7 67 3,96 6,59 31.12.212 1,397 73 9,28 1,678 All receivables and other assets are recognised at their nominal value (= cost). The receivables from affiliated companies relate to receivables from costs passed on that are due from Alt+Kleber Immobiliengruppe GmbH, Berlin. Of the other current receivables and assets, a total of TEUR 1,734 (31.12.212: TEUR 1,734) chiefly concerns receivables from on-account payments for operating costs, TEUR 716 (31.12.212: TEUR 71) in credit balances related to provisions for maintenance and repairs as well as TEUR 4 (31.12.212: TEUR 4) from an on-account payment made for consultancy services. 23 KWG Interim Financial Report 213 Notes

5.9 CASH CASH 3.6.213: EUR 3,69,79.66 (31.12.212: EUR 3,326,59.79) Cash and cash equivalents consist solely of cash and bank balances. They have a remaining term of less than three months at the time of acquisition or deposit. The change in cash and cash equivalents that constitute the cash funds pursuant to IAS 7 is presented in the statement of cash flows. 5.1 EQUITY EQUITY 3.6.213: EUR 177,6,193.67 (31.12.212: EUR 171,782,97.82) The change in equity is shown in the consolidated statement of changes in equity. The Company s share capital is TEUR 15,881 (31.12.212: TEUR 15,881). It is divided into 15,881,234 no par value bearer shares (31.12.212: 15,881,234) with a pro rata interest in the share capital of EUR 1. per share. Each share represents one vote and fully participates in profits. The 15,881,234 no par value bearer shares (31.12.212: 15,881,234) have been paid in full. The provisions comprise the following: (in TEUR) Share premiums Reserve for hedge accounting Other retained earnings Legal reserves of the parent TOTAL 3.6.213 65,31 597 3,879 2 68,315 31.12.212 65,31 728 3,84 2 68,145 As at 3 June 213, changes in the fair value of the derivative financial instruments in the amount of TEUR 597 (31.12.212: TEUR 728) were recognised directly in equity, taking into account deferred tax assets. The fair value (mark-to-market) before income taxes as at 3 June 213 was TEUR 79 (31.12.212: TEUR 865). The reserves concern the legal reserve (TEUR 2) in the single-entity financial statements of KWG AG, retained earnings (TEUR 3,86) from increasing the majority stake in Barmer Wohnungsbau Aktiengesellschaft, Wuppertal, and the reserve from actuarial gains and losses (TEUR 19). Both at the beginning and end of the period, there were 15,881,234 shares outstanding. 24 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT Non-controlling interests in the amount of TEUR 7,55 (31.12.212: TEUR 6,824) concern the Company s non-controlling interests in its subsidiaries, Barmer Wohnungsbau Aktiengesellschaft, Wuppertal (TEUR 7,52; 31.12.212: TEUR 6,821) and KWG Wohnwert GmbH, Glauchau (TEUR 3; 31.12.212: TEUR 3). The consolidated net retained profits as at 3 June 213 comprise the following items: (in TEUR) Profit attributable to investors in the parent Profit brought forward CONSOLIDATED NET RETAINED PROFITS 3.6.213 4,878 8,933 85,811 31.12.212 44,245 36,688 8,933 KWG AG does not hold any treasury shares. 5.11 SPECIAL ITEM SPECIAL ITEM 3.6.213: EUR 2,281,13. (31.12.212: EUR 2,281,13.) The special item relates to the contributions made and premiums paid for the purpose of implementing the capital increase as resolved concerning the shares to be granted from authorised capital to the sellers in connection with the acquisition of the interests in HvD I Grundbesitzgesellschaft mbh, Hamburg, (TEUR 897) and Viva I Immobilien u. Verwaltungs GmbH, Hamburg, (TEUR 897) as well as KWG Grundbesitz CV GmbH & Co. KG, Hamburg, (TEUR 487). A portion of the purchase price for these shares was paid to the sellers in the form of an equity component consisting of no par value bearer shares of KWG AG with a pro rata share in the share capital of EUR 1. per share. The plan is to issue the shares to be transferred in 213. The number of shares has yet to be determined in negotiations. 5.12 NON-CURRENT FINANCIAL LIABILITIES NON-CURRENT FINANCIAL LIABILITIES 3.6.213: EUR 22,148,634.4 (31.12.212: EUR 159,27,329.3) Long-term loans were taken out to ensure that the properties reported in note 5.3 are financed at matching maturities. These loans have terms ending no later than December 279. 5.13 DEFERRED INCOME DEFERRED INCOME 3.6.213: EUR 6,898,23.94 (31.12.212: EUR 7,77,441.42) 25 KWG Interim Financial Report 213 Notes

The deferred income relates to grants in the form of low-interest development loans from public-sector banks, which Barmer Wohnungsbau Aktiengesellschaft, Wuppertal, received prior to its affiliation with the Group. 5.14 PROVISIONS FOR PENSIONS PROVISIONS FOR PENSIONS 3.6.213: EUR 1,73,84. (31.12.212: EUR 1,762,486.) The defined benefit obligations changed as follows in the reporting period: (in EUR) Balance on 1 January 213 Interest expense Pension benefits paid Actuarial gains Balance on 3 June 213 1,762,486. 25,414. 61,428. 23,388. 1,73,84. The benefits are financed internally through the accrual of provisions for pensions; funded plans that meet the requirements of IAS 19.7 regarding plan assets do not exist. The calculation of pension obligations is based on the following actuarial assumptions: (in %) Discount rate p.a. Wages and salary trend p.a. Pension trend p.a. 3.6.213 3.3 2. 2. 31.12.212 3.1 2. 2. Interest cost of TEUR 13 and pensions and other post-employment benefits payable in the amount of TEUR 31 are calculated for the subsequent reporting period (July to September 213). 5.15 NON-CURRENT TRADE PAYABLES NON-CURRENT TRADE PAYABLES 3.6.213: EUR 863,24.55 (31.12.212: EUR 915,98.67) The non-current trade payables concern the purchase of a heating system that must be paid off in 15 equal annual instalments. The non-current liability, which includes both a repayment and an interest component, is discounted at a rate of 4.64% p.a. 26 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT 5.16 DEFERRED TAX LIABILITIES DEFERRED TAX LIABILITIES 3.6.213: EUR 16,298,714.9 (31.12.212: EUR 15,835,34.73) The deferred tax liabilities result from differences in the carrying amounts of the properties recognized between International Financial Reporting Standards (IFRS) and measurement requirements under national tax law. 5.17 NON-CURRENT BORROWINGS (THIRD-PARTY INTERESTS IN COMMERCIAL PARTNERSHIPS) NON-CURRENT BORROWINGS 3.6.213: EUR 66,38.28 (31.12.212: EUR 65,717.98) This concerns liabilities to the third parties that have stakes in the consolidated commercial partnerships. 5.18 CURRENT BORROWINGS CURRENT BORROWINGS 3.6.213: EUR 17,364,519.25 (31.12.212: EUR 114,42,217.32) (in TEUR) Current financial liabilities Current deferred income Current trade payables Current tax liabilities Other current liabilities TOTAL 3.6.213 11,726 229 1,78 468 3,233 17,364 31.12.212 16,157 226 4,286 299 93,74 114,42 Among other things, the other current liabilities concern TEUR 1,846 (31.12.212: TEUR 1,846) in advances received on operating expenses and TEUR 79 (31.12.212: TEUR 865) in liabilities related to derivative financial instruments. As at 31 December 212, the other current liabilities contained the full purchase price of TEUR 89,5 for the properties in Berlin, Wuppertal, Bochum, Düsseldorf, Ennepetal, Essen, Oberhausen, Remscheid, Marl, Velbert and Wülfrath that were acquired as at 31 December 212. These liabilities have remaining terms of up to one year. 5.19 CONTINGENT LIABILITIES AND OTHER FINANCIAL OBLIGATIONS Based on the stipulated fixed lease term of 6 months, the remaining liabilities related to the office space rented from 1 March 21 at Alstertor 9, Hamburg, as at 3 June 213 amount to TEUR 238. There are also standard leases that are classified as operating leases pursuant to IAS 17.8. The leased property is recognised by the lessor, and not by the lessee. There are TEUR 123 in liabilities under the existent leases as at 3 June 213. 27 KWG Interim Financial Report 213 Notes

6. RISK REPORT Since the beginning of the financial year, no significant changes with regard to the the risks of the future development of business have occurred. We do not see any going concern risks for the Group. As a result, the disclosures made in the consolidated financial statements as at 31 December 212 continue to apply. 7. EARNINGS PER SHARE Basic earnings per share are calculated by dividing the profit to be allocated to owners of no par value shares by the weighted average of the shares outstanding during the period in question. As the Company has issued neither options nor convertible bonds, basic earnings per share correspond to diluted earnings per share. The determination of earnings per share is based on EUR 4,877,844.28 (previous year: EUR 2,386,45.51) in consolidated net profit for the period attributable to the investors in the parent. The weighted average number of shares issued or to be issued (16,27,93 shares; first half-year 212: 12,851,55 shares) during the reporting period differs from the total number of ordinary shares outstanding on 3 June 213 (15,881,234 shares; 3 June 212: 14,381,234 shares). In addition to the capital increases executed during the previous year, this is due to the fact that portions of the consideration transferred in connection with business combinations must be issued in the form of ordinary shares and the relevant capital increase has not yet been recorded in the Commercial Register. Basic earnings per share amount to EUR.3 for the period from 1 January to 3 June 213 (1 January to 3 June 212: EUR 1.59). 8. SUPERVISORY BOARD Changes regarding the composition of the Supervisory Board were adopted at the Annual General Meeting of KWG Kommunale Wohnen AG, Hamburg, on 17 June 213. The Supervisory Board has been comprised as follows since then: Chairman: Prof. Dr. Peer Witten, Honorary Chairman of BVL Bundesvereinigung Logistik, Hamburg Deputy Chairman: Further members: Johannes Meran, Chairman of the Board of Directors of conwert Immobilien Invest SE, Vienna Thomas Doll, Managing Director of conwert Immobilien Invest SE, Vienna Stavros Efremidis, Managing Director of conwert Immobilien Invest SE, Vienna Franz-Josef Gesinn, Self-employed lawyer; previous member of the Management Board of DG HYP Deutsche Genossenschafts-Hypothekenbank AG, Hamburg Johannes Rudnay, Regional Manager Germany of conwert Immobilien Invest SE, Vienna 28 KWG Interim Financial Report 213 Notes

213 INTERIM FINANCIAL REPORT 9. OTHER DISCLOSURES AND EVENTS AFTER THE REPORTING PERIOD There were no other events of material significance between the reporting date and the date of the consolidated financial statements. 1. RELATED PARTY DISCLOSURES In the first six months of the 213 financial year, there were no transactions between the Company, on the one hand, and members of the Management Board or Supervisory Board, on the other hand. There are changes in the related party disclosures compared with 31 December 212. The changes are related to the new composition of the Company s Supervisory Board. Furthermore, as a result of the majority shareholding of conwert Immobilien Invest SE, Vienna, in KWG Kommunale Wohnen AG, since 21 January 213 both conwert Immobilien Invest SE, Vienna, and its subsidiaries have been related parties as defined by IAS 24. With the exception of staff leases and the sale of furniture and fixtures, no significant business transactions took place between the companies included in the consolidated financial statements and other related parties in the first six months of the 213 financial year. 11. STATEMENT OF CASH FLOWS DISCLOSURES Cash corresponds to the definition of cash and cash equivalents provided in the disclosures on material measurement principles. The consolidated statement of cash flows was prepared in accordance with IAS 7; the changes in cash are broken down by cash flows from operating activities, investing activities/apartment sales and financing activities. It is structured according to the indirect method. Interest payments are reported in full in the cash flow from operating activities. 29 KWG Interim Financial Report 213 Notes