BUWOG Group Residential 2.0 April Data as of 31 st January 2014 (unless stated otherwise)

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1 BUWOG Group Residential 2.0 April 2014 Data as of 31 st January 2014 (unless stated otherwise)

2 DISCLAIMER This presentation (the "Presentation"), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in any jurisdiction where applicable laws prohibit its viewing, release, distribution, publication or use. This Presentation does not constitute or form part of, and should not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or any solicitation of any offer to purchase or subscribe for any securities of BUWOG AG, a stock corporation organised under Austrian law (the "Company") or IMMOFINANZ AG, in any jurisdiction. Neither the Presentation, nor any part of it nor anything contained or referred to in it, nor the fact of its distribution, should form the basis of or be relied on, in connection with, or act as an inducement in relation to, a decision to purchase or subscribe for or enter into any contract or make any other commitment whatsoever in relation to any such securities. The information contained in this Presentation has been provided by the Company and has not been verified independently. Unless otherwise stated, the Company is the source of information. No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation or on its completeness, accuracy of fairness. No representation or warranty, express or implied, is made or given by or on behalf of the Company, IMMOFINANZ AG or any of its respective directors, officers, employees, agents or advisers as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation and no responsibility or liability is accepted by any of them for any such information or opinions. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, ambitions, estimates or forecasts contained in this Presentation and nothing in this Presentation is or should be relied on as a promise or representation as to the future. This Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. All information in this Presentation is current at the time of publication but may be subject to change in the future. The Company and IMMOFINANZ AG disclaim any obligation to update or revise any statements, in particular forward-looking statements, to reflect future events or developments. Statements contained in this Presentation regarding past events or performance should not be taken as a guarantee of future events or performance. Prospective recipients should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and are to make their own assessments concerning such matters and other consequences of a potential investment in the Company or IMMOFINANZ AG and its securities, including the merits of investing and related risks. In accessing this Presentation, you will be deemed to have represented and agreed for the benefit of the Company and IMMOFINANZ AG (i) that you are permitted, in accordance with all applicable laws, to receive such information, and (ii) that you are solely responsible for your own assessment of the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. 2

3 BUWOG SENIOR MANAGEMENT TEAM / PRESENTERS Mag. Daniel Riedl, 44 Dr. Ronald Roos, 46 Holger Lueth, 41 CEO of BUWOG since November 2013 CFO of BUWOG since February 2014 Head of Investor Relations and Corporate Finance 16 years real estate experience 5 years COO experience Previous positions Chairman of the BUWOG Supervisory Board COO and Member of the Executive Board, IMMOFINANZ, responsible for the residential property business in Eastern and Western Europe, as well as human resources, marketing and IT corporate services Managing Director of BUWOG Studied Business Administration at Vienna University of Economics FRICS 9 years CFO experience 8 years real estate experience Previous positions Chief Restructuring Officer, Norddeutsche Reederei CFO, aurelis CFO, Swiss Life Germany Consulting positions, Ernst & Young Board positions, WCM Group Studied Business Administration at University of Bayreuth Former professional handball player, won German championship and German cup 9 years capital market experience thereof 5 years on the Buy-Side as Senior Analyst of a mid-size European Event Driven Investment Fund 4 years consulting experience regarding Capital Markets strategies, M&A structuring and execution, Corporate Finance Relevant mandate from German listed residential real estate company Commercial Banking Experience German qualified solicitor, admitted to the bar at the Hanseatic Chamber of Solicitors Hamburg, Germany 3

4 1 OVERVIEW INVESTMENT HIGHLIGHTS GOVERNANCE AND SET-UP OUTLOOK / CONCLUSION APPENDIX 4

5 STARTING POINT The completion of the spin-off will position BUWOG as a leading player in residential real estate in Germany and Austria Focus Reinforcing focus on BUWOG s strategy and markets allows tapping the full potential and positions the company for further growth Successful Acquisition Transformation EGM Approval Corporate Independence & Access to Capital Markets In February 2014, BUWOG entered into a definite purchase-and-sale agreement to acquire the DGAG portfolio of approx. 18,000 units located in Northwestern Germany and the Prelios Platform (the DGAG Acquisition ) The DGAG Acquisition represents a key milestone to grow BUWOG into a leading residential player in Austria and Germany which is distinguished from its peers by an integrated and sustainable business model IMMOFINANZ shareholders have approved the 51% (partial) spin-off in an EGM on 14 March 2014 with a 99.96% voting cast By establishing its own capital market presence with listings in Frankfurt, Vienna and Warsaw, BUWOG will benefit from direct access to capital market financing, allowing for flexible and opportunistic raising of capital to exploit investment potential 5

6 BUWOG AT A GLANCE Significant rental portfolio complemented by Property Development and Property Sales Key Facts and Figures Company headquartered in Vienna with triple listing expected in Frankfurt, Vienna and Warsaw Company with uniquely complementary business model in the residential sector in Germany and Austria, based on three pillars Kiel Hamburg Portfolio Lübeck Asset Management Property Sales Property development Region DE North West Lüneburg Braunschweig BERLIN Stable cash flow from portfolio of c.53,000 units (1) in Germany and Austria Fair value of c. 3.5bn (2) Defined pipeline of unit sales with significant impact on recurring FFO Block sales made on opportunistic basis Balanced project pipeline throughout the different development stages Focus on Vienna and Berlin Kassel Federal capitals State capitals and major cities (4) Suburban areas (5) Rural areas Contribution to Result (3) Contribution to Result (3) Contribution to Result (3) 77% 18% 5% (1) Based on portfolio data as of 31-Jan-14 including DGAG and further portfolio acquisitions not yet closed. (2) Fair value of investment properties and properties held for sale is calculated via property appraisals as at October 31 of the respective fiscal year for existing portfolio and on allocation of acquisition price of the DGAG portfolio and acquisitions not yet closed. (3) Results of operations before expenses not directly attributable excluding other operating income of 3m. Pro forma including DGAG Acquisition as of 31-Jan (4) With 50,000 inhabitants or more and where the Group has a significant portfolio share of 600 units or more. (5) Up to approximately 15 km area surrounding the federal and state capitals, major cities and Hamburg. Innsbruck Salzburg Villach Linz Region AT States Klagenfurt Graz WIEN 6

7 2 OVERVIEW INVESTMENT HIGHLIGHTS GOVERNANCE AND SET-UP OUTLOOK / CONCLUSION APPENDIX 7

8 INVESTMENT HIGHLIGHTS A B C Distinct Business Model and Defined Geographic Focus Track-Record of Conservative Capital Structure Recurring FFO and Dividend Capacity Key Differentiators Asset Management complemented by Property Development and Property Sales Geographical focus on distinct regions in Germany and Austria Disciplined management of capital structure Long-term secured financing with an average maturity of ~17 years (1) Very attractive average interest rate of 2.6% (1) Recurring FFO generation anchored by Asset Management, enhanced by Property Development and Unit Sales High dividend potential and superior dividend yields D Favorable Industry and Market Environment Benefits from stable Austrian and German residential markets (1) Based on nominal values. 8

9 A DISTINCT BUSINESS MODEL ACTIVE ACROSS THE VALUE CHAIN Two-pillar geographic portfolio combined with a fully-integrated business model across the value chain PROPERTY DEVELOPMENT Development of rental apartments into standing portfolio in Vienna Development of apartments for sale in Vienna and Berlin ASSET MANAGEMENT Generation of rental income through letting of standing properties Optimization through active asset and portfolio management Acquisitions in Germany Recurring FFO Mid-term target: 60-65% pay-out Dividends ~4% of EPRA NAV planned for FY2013/14 PROPERTY SALES Single unit sales focused on Austria Start with unit sales in Germany in the mid-term Properties and portfolio optimization in Germany and Austria (block sales) (1) (1) Block sales are not part of Recurring FFO. 9

10 A STRATEGIC PORTFOLIO LOCATED IN DEFINED REGIONS Focus on the federal capitals Berlin and Vienna as well as major cities in Northwestern Germany and Austrian state capitals and their related suburban areas Portfolio Statistics (1) Geographic Overview Federal capitals Units Fair value (million) % of Fair value Fair value per sqm Monthly in-place rent per sqm Market rent per sqm (2) Net rental yield Vacancy rate (3) 12,211 1,308 38% 1, % 4.0% Vienna 7,204 1,009 29% 1, % 4.7% Berlin 5, % % 2.6% HQ AM PD PS Headquarter Asset Management Property Development Property Sales AM Kiel Hamburg Region Lüneburg DE North West Braunschweig Kassel Lübeck AM PD PS BERLIN State capitals and major 19,903 1,057 30% % 3.0% cities (4) Suburban areas (5) 8, % % 4.5% Rural areas 12, % n/a 6.5% 6.7% Total 53,073 3, % n/a 5.6% 4.3% Total Germany 26,471 1,324 38% n/a 7.7% 2.9% Total Austria 26,602 2,152 62% 1, n/a 4.3% 5.5% Federal capitals State capitals and major cities Suburban areas Rural areas Over 80% of the portfolio s fair value are located in state capitals, major cities or suburban areas Innsbruck AM AM Linz VIENNA Region Salzburg AT States Graz AM Villach AM PS AM HQ AM Klagenfurt PD PS (1) Based on portfolio data as of 31-Jan-14 including DGAG and further portfolio acquisitions at purchase price. (2) CBRE, market rent for subcategories calculated as average weighted by lettable area of BUWOG portfolio. Please refer to page 35 in the appendix for more detailed portfolio statistics. (3) Number of total sqm vacant at period end divided by total sqm at period end. (4) With 50,000 inhabitants or more and where the Group has a significant portfolio share of 600 units or more. (5) Up to approximately 15 km area surrounding the federal and state capitals, major cities and Hamburg. 10

11 A VALUE CREATION THROUGH ACTIVE ASSET MANAGEMENT AND PORTFOLIO OPTIMIZATION Proven track record as successful asset manager Historic Rental Development Vacancy (sqm) (2) Maintenance and Capex ( /sqm) % rent increase vs 4.6% inflation ( /sqm) % rent increase vs 3.9% inflation (%) 3.4% 3.4% 4.7% 5.5% (2) 4.3% 2.9% ( /sqm) Jan- 14 Including portfolio turnover (1) Jan- 14 Like-for-like development of 2,285 unit portfolio since Austria Germany Total 31-Jan Maintenance Capex Proven track record of increasing rent levels despite rent restrictions on 66% of portfolio Portfolio optimizations, property development and rent increases resulted in strong outperformance compared to inflation Total vacancy rate reduced due to DGAG Acquisition and sale of Austrian portfolio Relatively high vacancy in Austria resulting from unit sales strategy Substantial investments in portfolio quality in past years Current capex/maintenance levels in line with peers (1) The rent increase is not like for like, i.e. disposals and development affect these numbers. (2) Based on portfolio data as of 31-Jan % vacancy based on sqm translates into 4.5% vacancy based on units, of which 2.0% are operational vacancy. 11

12 Clear Diffrentation A PROPERTY SALES Clear differentiation between recurring unit sales and opportunistic block sales Cluster Unit Sales Block Sales Sample Properties Key Facts Unit sales in selected areas to owner-occupiers Strong profitability track record with historical average margins of above 50% (1) contributing to Recurring FFO Optimal mix between internal and external sales channels Disposal of whole properties or small / mid-sized portfolios Block sales in suburban areas above fair value in past years for portfolio streamlining purposes Optimal mix between internal and external sales channels (1) On book value. Pipeline Contribution to Recurring FFO Units Fair Value (EURm) Recurring revenues through unit sales Fair Value per sqm (EUR) Vienna 5, ,584 Rest of Austria 7, ,084 Germany Total 13,658 1,396 1,303 Units Fair Value (EURm) Fair Value per sqm (EUR) Vienna 1, ,499 Rest of Austria 3, Germany Total 4, Block sales in case of good opportunities with adequate margins 12

13 A HISTORICAL TRACK RECORD Targeted unit sales of 500 units p.a. equal approx. 1% of the portfolio Units/Blocks (1) Avg. Unit Sales Price / sqm (1) Sales Margin on Fair Value (1) Results Contribution from Property Sales (Units) 2,000 1,500 1, ,000 1,666 1,213 1, , months 31-Jan-14 Unit Sales Block Sales ( ) 2,500 2,000 1,500 1, ,797 1,958 2,015 2, months 31-Jan-14 60% 50% 40% 30% 20% 10% 0% -10% 55% 55% 54% 50% 17% 15% 7% -3% months 31-Jan-14 Unit Sales Block Sales ( m) months 31-Jan-14 Unit Sales Block Sales Recurring unit sales of c. 450 units p.a. in past years Block sales only on an opportunistic basis Increasing prices in past years and remaining stable in the current year High margins of over 50% on unit sales Consistently positive sales margins for block sales since 2012 Relatively low number of sold units has significant impact on Recurring FFO Opportunistic block sales not included in Recurring FFO (1) Based on portfolio data as of 31-Jan

14 A EXCURSUS: HIGH MARGIN TENANT-FINANCED DEVELOPMENT Implied equity commitment key to understand the full project return potential: Project Altmannsdorfer Strasse in Vienna In EUR thousand Planning/Construction Year (5)-(1) Renting Period Year 0-6 Divestment Period Year 7-19 Cash-Out (11,728) (2,763) (9,722) Purchase Cost of Land (1,739) Construction Cost (9,989) Subsidized and bank loans 8,675 Tenant Contributions 2,963 Interest costs (1,851) Amortization of subsidized and bank loans (912) Rental Income 2,969 Interest Cost (1,869) Rental Income 5,256 Amortization and repayment of subsidized and bank loans (7,853) Income from Sales 14,990 Cash-In 11,728 2,969 20,246 Net CF ,524 Equity Generation ,730 Equity contribution only required for purchase of land and repaid by tenant contributions upon completion Low rental income during renting period, but tenant contributions as upfront payment During divestment period single unit sales, then sale of remainder in block sale Tenant contributions as second rent paid upfront, which are amortized over 100 years Despite long project period, equity is only tied up for a very limited time Due to the minimal use of equity required, this sample property development yields an IRR of 11.6% over the period of 25 years 14

15 A PRODUCT DEVELOPMENT MATRIX Subsidized rental apartments Subsidized condominiums Condominiums Retail investment apartments Built for Portfolio Building Local customers Local customers National customers VIENNA (4,292 Units) 1,164 units 181 units 2,027 units 861 units 59 units Oase 64 subsidized rental apartments Lettable area: 5,571sqm Inv. volume: 11.59m Heller Wohnpark 112 subsidized condominiums Lettable area: 10,408sqm Inv. volume: 24.57m Jedlerseerstrasse 108 condominiums Lettable area: 8,135sqm Inv. volume: 13.24m Universumstrasse 50 retail investment apartments Lettable area: 3,408sqm Inv. volume: 8.93m Properties for investors Institutional customers and foundations Boschstrasse 41 properties for investors Lettable area: 2,587sqm Inv. volume: 8.23m BERLIN (1,683 Units) 1,631 units 52 units Tharauer Allee condominiums Lettable area; 12,345sqm Inv. Volume: 46.15m Scharnhorststr properties for investor Lettable area: 3,810sqm Inv. volume: 11.01m Total Units: 5,975 15

16 A DEVELOPMENT PIPELINE AND EXPERIENCE Focus on Vienna and Berlin to leverage expertise and profitability Historical Track Record (1) and broad/balanced pipeline. with clear focus and exit plan (2) (3) months ended 31-Jan- 14 Units Completed Units in Construction As of Jan 31, 2014 Projects Units Under Construction / Construction Start in 2013/14 (3) Inv. Volume (in EURm) In Planning (4) 22 4,524 1,141 Land Reserves Total 43 5,975 1,510 Vienna/Berlin Split (1,5) Berlin 31% Vienna 69% Rent/Sale (1,6) Sale 80% Rent 20% Long-standing experience as property developer in highly attractive Viennese market Planned expansion of activities in Berlin based on acquisition of BUWOG Meermann Balanced project pipeline throughout the different development stages Significant expansion of activities from 2015/2016 based on thorough preparation Geographical focus on Vienna and Berlin only Approx. 80% of developed units marked for subsequent disposal, remainder to be rented out (1) Based on portfolio data as of 31-Jan-14. (2) Additional 222 units of the Hellerpark geriatric center. Completed in fiscal year (3) 553 units in construction (compare bar chart on lhs) and 192 units with construction to start in 2013/14. (4) Construction expected to start from fiscal year 2014/15 onwards. (5) By investment volume. (6) By units on total pipeline. 16

17 B CONSERVATIVE CAPITAL AND FINANCING STRUCTURE Conservatively structured debt profile at very attractive conditions ( m) 1,500 1,250 1, Key Facts Target Net LTV Range: 50%-55% (basis IFRS) Average Maturity: ~17 years Average Interest: ~2.6% 34% of gross nominal debt subsidized 90% of debt with fixed rate or hedged against interest rate risk Continuous amortization rather than bullet payments (except for CB) Diverse lending group with more than 50 banks Debt Maturity Profile after DGAG Acquisition (Nominal) , '14E '15E '16E '17E '18E '19E '20E '21E '22E '23E > '23E Bank Financing Convertible Additional Bank Financing from Acquisition Note: Based on portfolio data as of 31-Jan-14. Final DGAG financing still subject to market conditions at closing and finalization of loan documentation. Based on nominal debt, LTV on IFRS debt. (1) Relates to DGAG Acquisition. 5% 6% 24% 25% 6% 54% 10% 17% 12% 41% Instrument Mix Bank Financing Subsidized Loans Austria Subsidized Loans Germany Convertible Bond Total: c. 2,180m gross nominal debt Bank Financing Partners (1) Berlin Hyp and consortium Raiffeisenlandesbank Oberbank AG Hypovereinsbank-Member of UniCredit Bank Austria Unicredit Other Total Bank Financing: c. 1,181m gross nominal debt 38% Hedging Structure (Fixed/Floating) 10% 52% Fixed-rate loans Total: c. 2,180m gross nominal debt Hedged loans (swaps) Floating-rate loans 17

18 C CONTRIBUTORS TO RECURRING FFO AND RESULTS Breakdown of Recurring FFO and Results by value drivers Units (1) Volume (1) Value Generation Units (1) Volume (1) Value Generation Contribution to Recurring FFO Contribution to Pro Forma Results 9 Months 2013/14 (3) 1 Asset Management 26,602 2,152m (Fair Value) Net Rental Yield 4.3% Debt Interest 2.0% (2) Yield Spread 2.3% (2) 26,471 1,324m (Fair Value) Net Rental Yield 7.7% Debt Interest 3.1% (2) Yield Spread 4.6% (2) 77% 2 Property Sales Unit Block 13,595 (Potential) 4,351 (Potential) 1,391m (Fair Value) 298m (Fair Value) Historical Margin 50% 500 units p.a. planned Historical Margin 10% Sales potential being analyzed and to start in the mid-term 18% 3 Property Development Portfolio Disposal 4,292 (Pipeline) 1,043m (Investment Volume) Subsidized rental apts. for potential future unit sales ( units p.a.) 1,683 (Pipeline) Historical Margin 20% units p.a. planned 466m (Investment Volume) units p.a. planned 5% BUWOG VALUE CREATION STRATEGY Shift from Austrian centric portfolio to a ~ 50/50 Austria/Germany portfolio due to limited growth opportunities in Austria. Increase in rental yield from DGAG and other German acquisitions from 4.8% in 2012/13 to 5.6% in 2013/14 on overall portfolio Mid-term income potential from c. 14,000 units classified for unit sales with historical unit sales margin >50% on average Disciplined development business. Focus on federal capitals Berlin and Vienna with development into standing portfolio (Vienna) and direct sale Long lasting experience in residential development in Austria Recurring Cash Flow generation based on multiple income streams (1) x (1) x (2) (1) x Based on portfolio data as of 31-Jan-14. (2) Excluding convertible and based on nominal debt amount. (3) Results of operations before expenses not directly attributable excluding other operating income of 3m. Pro forma including DGAG Acquisition as of 31-Jan

19 FFO Unit Sales Recurring FFO Block Sales Total FFO FFO Unit Sales Recurring FFO Block Sales Total FFO FFO Unit Sales Recurring FFO Block Sales Total FFO FFO Unit Sales Recurring FFO Block Sales Total FFO (1) (1) (1) (1) C UNIT SALES AND DEVELOPMENTS ARE A SUSTAINABLE CONTRIBUTOR TO RECURRING FFO Recurring cash generation supported by development business and unit sales in Austria FFO Contribution Majority contribution for Recurring FFO derived from the asset management segment in form of rental income Unit sales are an essential and sustainable contributor to the Recurring FFO and have proven to be stable in 2011/2012 and 2012/2013 Block sales increased in 2012/13 due to a one-off disposal of a larger portfolio in Carinthia FFO has been lower in the period due to tax effects from leaving the IMMOFINANZ-taxgroup and depleted usage of tax losses carried forward in 2013 ( m) ( m) ( m) ( m) / / /2013 9M 2013/2014 Note: FFO unaudited for all shown periods. Rounding errors may occur. (1) Deviation from P&L result due to block sales signed in one financial year but closed in the next financial year are displayed in second financial year. 19

20 D FAVORABLE INDUSTRY AND MARKET ENVIRONMENT Focus on stable German and Austrian residential markets Macro Economic Environment (1) Rental and Price Development (4) Performance of Listed Peers (3) Solid economic fundamentals in Germany and Austria, outperforming the Eurozone Financing Environment (3) as well as sound financing environment EURO 18 Population m 8.4m 333.1m Household growth E 2.1% 12.5% n/a GDP per capita 2013E 33,374 36,928 28,400 GDP growth 2013E 0.5% 0.4% --0.4% Unemployment rate 12/ % 4.9% 12.0% Inflation rate 1.6% 2.1% 1.3% Yield (%) 4% 2% 10Y-German Benchmark Bond 10Y-Austrian Benchmark Bond 5Y -Euro Midswap 0% Mar-11 Mar-12 Mar-13 Mar-14 (2) Rental development very different across regions Rents strongly regulated by law Demand leading to higher market prices in densely populated areas Highly attractive environment for unit sales In 2012, prices rose by 12% across Austria as a whole (16% in Vienna) Inhomogeneous market; high rental discrepancies Historically constant rental level with substantial increase potential (i.e. Berlin) Demand surplus leading to rising rents in urban areas and surroundings From 2009 to 2012, acquisition prices rose by over 25% across Germany as a whole along with attractive development of rental levels and unit prices Jan-13 Apr-13 Jul-13 Nov-13 Feb-14 have resulted in a continuously positive sentiment for German and Austrian residential real estate 25.32% 17.38% 11.00% 7.00% -2.05% -7.05% DW DAIG Gagfah LEG TAG conwert Premium / (Discount) to NAV -33% -38% -38% 1) Eurostat, Economist Intelligence Unit, German federal statistics agency. 2) GDP per capita for ) Fastset as per 31-March ) UniCredit: The Austrian Real Estate (October 2013), Deutsche Bundesbank/Dr Andreas Dombret: The German housing market in the low-interest-rate environment Market, CBRE Housing Market Report. DW LEG DAIG TAG Gagfah conwert -16% -2% -2% -5% -6% -5% Current (31-Mar-14) 2% 11% 12% 01-Jan-13

21 OVERVIEW 3 INVESTMENT HIGHLIGHTS GOVERNANCE AND SET-UP OUTLOOK / CONCLUSION APPENDIX 21

22 STRONG CORPORATE GOVERNANCE SET-UP Compliance with the Austrian Corporate Governance Code EGM (planned for 15 May 2014) BUWOG complies with the Austrian Corporate Governance Code, which exceeds legal requirements and is reviewed on a yearly basis The Austrian Corporate Governance Code includes recommendations and international standards to strengthen investors confidence in management and company monitoring Supervisory board to consist of 5 members and employee representatives All members of the Supervisory Board are initially appointed by IMMOFINANZ for a term of office until the first EGM IMMOFINANZ limited to use its voting rights for the vote of maximum two supervising board members only Suggested supervisory board (subject to EGM approval): Vitus Eckert, partner at Eckert Fries Prokopp Rechtsanwälte GmbH Dr. Eduard Zehetner, CEO of IMMOFINANZ Group Klaus Hübner, president at the Austrian Society of Chartered Public Accountants Prof. Dr. Volker Riebel, ex-ceo of Deutsche Annington German female representative with capital market experience EGM is planned for May 15, 2014 when new elections for all supervisory board members will be held Management Compensation The remuneration of the members of the Management Board comprises a fixed salary and variable, performance-linked components that correspond to their individual duties, as well as to their strategic and operating responsibilities A long-term incentive program for the members of the Management Board is planned to be implemented, the conditions of which are intended to be determined by the Supervisory Board following the spin-off 22

23 RELATIONSHIP WITH IMMOFINANZ Platform Spin-Off Mechanism BUWOG has been maintaining an independent operating platform and legal structure in the past Under ownership by IMMOFINANZ, BUWOG has been operating as a stand-alone company No negative synergies resulting from the separation expected besides separation of IT platform and exit of group taxation regime; limited remaining service level agreements (at arm s length) to remain in place To effectuate the spin-off, BUWOG will increase its share capital by issuing 56,447,635 shares of notional 1 The IMMOFINANZ shareholders will receive 1 newly issued share of BUWOG for every 20 IMMOFINANZ shares, resulting in IMMOFINANZ shareholders to hold 51% of BUWOG De-domination Agreement (1) A de-domination agreement between IMMOFINANZ Group and BUWOG will ensure no strategic influence of IMMOFINANZ Group IMMOFINANZ is expected to account for residual BUWOG stake on an at equity basis Stake in BUWOG Residual 49% BUWOG stake is held as a financial investment by IMMOFINANZ and is planned to be sold in the mid-term 90 days lock-up period for IMMOFINANZ BUWOG Convertible Bond In order to enable BUWOG the funding of the equity purchase price of the DGAG Acquisition, IMMOFINANZ Group will subscribe to a BUWOG convertible bond of m nominal value Key conditions and pricing of the convertible bond are in line with the market (1) Details in joint separation report. 23

24 OVERVIEW INVESTMENT HIGHLIGHTS 4 GOVERNANCE AND SET-UP OUTLOOK / CONCLUSION APPENDIX 24

25 STRATEGY OUTLOOK Unique business model providing cash flow resilience even in off-cycles, differentiating BUWOG from its peers Asset Management Strategy Further increase of rent levels Optimization and streamlining of portfolio Geographic shift through capital recycling Strategy Increase rent levels and engage in cost optimization through management of maintenance/capex Further grow the portfolio through acquisitions in selected regional clusters Targeted Mid-term Contribution to Income c. 70% Unit Focus on highly profitable unit sales Unit sales potential being analyzed Property Sales Block Block sales in suburban areas on an opportunistic basis or for portfolio optimization, i.e. portfolio concentration Opportunistic Block sales for portfolio optimization c. 15% Property Development Approx. 80% built for subsequent disposal, remainder for own portfolio Further continue development activities in Berlin c. 15% 25

26 CONCLUSION Spin-off to position BUWOG as a leading player in residential real estate in Germany and Austria Sustainable and resilient three pillar business model with distinct geographical focus Recurring FFO generation and strong dividend distribution profile Long term secured financing structure at very attractive terms 26

27 OVERVIEW INVESTMENT HIGHLIGHTS GOVERNANCE AND SET-UP 5 OUTLOOK / CONCLUSION APPENDIX 27

28 FINANCIALS 28

29 TOTAL P&L Combined 9 months period Combined 12 months period ended January 31 Pro forma ended All amounts in EURm January / / /11 Results of asset management Results of property sales Results of property development Other operating income Results of operations before expenses not directly attributable Total P&L Expenses not directly attributable (13.4) (14.2) (7.7) (9.6) (11.5) (9.8) Results of operations Revaluation of investment properties Impairment and related reversals (4.3) (3.2) (12.4) (16.3) (11.4) (2.2) Other revaluation results Operating profit (EBIT) Financing costs (55.0) (27.7) (30.0) (39.9) (40.8) (38.2) Financing income Other financial results (2.5) (11.7) (22.8) 11.6 Financial results (39.2) (11.9) (28.3) (46.2) (57.4) (22.8) Earnings before tax (EBT) Income tax expenses (10.3) (10.0) (1.2) (2.0) (0.1) 0.1 Deferred tax expenses (13.3) (13.9) (18.2) (30.1) (14.2) (22.8) Net profit for the period Comments Decrease partially caused by lower management fees payable to the IMMOFINANZ Group Advertising costs in fiscal year 2012/2011 were higher than normal due to increased expenses for advertising efforts relating to the Group s 60-year anniversary Gains related to market improvement after the substantial negative adjustments in 2009; strong increase in 2013, especially in Vienna Impairment relates mainly to write-down of receivables and goodwill (FY 2011/12: c. 9m, FY2012/13: c. 14m) Increase due to higher impairments of goodwill relating to companies which are part of the Group s development business and higher valuation adjustments to receivables and expenses from derecognized receivables principally relating to the write-down of a larger receivable Of which net non-cash financing costs amounting to 13.4m in 2012/13 Includes the result from derivatives ( -16.3m) and in 2012/13 received dividend payments ( +4.6m); dividends were received, amongst others, from BUWOG FM GmbH (will no longer be received once the sale of BUWOG FM GmbH has been completed) Most of the variation in these years was due to valuation effects from financial derivatives and is non-cash Note: Rounding errors may occur. 29

30 CASH FLOW STATEMENT Combined 9 months Combined 12 months period period ended January 31 All amounts in EURm / / /11 Cash flow from operating activities Cash flow from investing activities (10.7) Cash flow from financing activities (48.0) (220.0) (228.6) 13.6 (73.5) Change in cash and cash equivalents 36.7 (159.4) (212.5) Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Cash Flow Statement Comments Decrease due to more receivables and other assets outstanding as well as changes in inventories Strong increase of cash outflow due to larger portfolio acquisitions in Germany Change related to a refinancing effort for an existing part of the Group s portfolio in 2011/12 and the purchase of ESG in 2012/13 Note: Rounding errors may occur. 30

31 BALANCE SHEET EVOLUTION Pro forma 9M Combined 9 months Combined 12 months period All amounts in EURm ended period ended January 31 ASSETS January / / /11 Investment property 3, , , , ,382.6 Property under construction Other non-current assets Deferred tax assets Non-current assets 3, , , , ,538.2 Trade and other receivables Income tax receivables Non-current assets held for sale Real estate inventories Cash and cash equivalents Current assets Total assets 3, , , , ,790.1 EQUITY AND LIABILITIES Equity before non-controlling interests 1, , , , ,306.0 Non-controlling interests (0.8) (0.8) Equity consolidated 1, , , , ,305.3 Equity of combined included companies Total Equity 1, , , , ,640.1 Liabilities from convertible bonds Long-term financial liabilities 1, , Trade and other payables Income tax liabilities Provisions Deferred tax liabilities Non-current liabilities 2, , , Short-term financial liabilities Trade and other payables Other current liabilities Current liabilities Total equity and liabilities 3, , , , ,790.1 Note: Rounding errors may occur. Balance Sheet Comments Land reserves in Investment properties are recognized at cost Increase due to portfolio purchases in Germany and acquisitions of land for future development projects as well as positive revaluation of properties Project developments are reflected under Property under construction and Real estate inventories Other non-current assets includes tangible assets ( 8.4m), intangible assets and goodwill ( 6.2m), trade receivables ( 4.3m) and other loans and receivables ( 32m) Land reserves in Real estate inventories are recognized at cost Decrease due to a strong cash outflow from financing activities Composed of share capital, capital reserves and retained earnings. Change in equity due to changes in accounting treatment (transfer of ESG) Minorities in the pro forma financials stem from the DGAG acquisition The largest part consists of provisions for severance payments ( 2.8m) Mainly tenant contributions ( 111m), these contributions will usually not be paid back, amortization of these tenant contributions can be seen as second rent Consist of short-term liabilities in context of property sales ( 12m), tax liabilities ( 2m) and accruals in context of property development 31

32 NAV DEVELOPMENT NAV Development Comments Combined 9 months period ended Combined 12 months period January 31 All amounts in EURm / / /11 Equity before non-controlling interests 1, , , ,306.0 Goodwill (4.7) (4.7) (1.8) (0.4) Positive market value of derivatives (8.2) Negative market value of derivatives Increase due to retained earnings and high capital reserves Equity ratio increased to 48.9% from 46.6% Included in the balance sheet position trade and other payables (non-current liabilities) Deferred taxes assets (0.7) (3.7) (3.4) (0.9) Deferred taxes liabilities Difference between carrying amount and fair value of inventories Difference between carrying amount and fair value of own-occupied buildings Change due to increase/decrease in pre-tax income and increasing difference between IFRS book values and tax book values EPRA NAV 1, , , ,358.7 Note: NAV 9-month 2013/14 unaudited. Rounding errors may occur. 32

33 BACK-UP MATERIALS 33

34 PORTFOLIO STATISTICS (1) Units at period end Percentage of total units Lettable area at period end (in sqm) Total in-place rent (inteur) Monthly in-place rent at period end per sqm (EUR) Market rent per sqm (EUR) (2) Fair Value at period end (in TEUR) Percentage of total Fair Value Fair Value per sqm (in EUR) Net rental yield (in %) Federal capitals 12, % 960,922 57, ,307, % 1, % 4.0% Vienna 7, % 628,658 35, ,009, % 1, % 4.7% Berlin 5, % 332,264 21, , % % 2.6% State capitals and major cities 19, % 1,293,874 68, ,057, % % 3.0% thereof Austria 6, % 505,326 20, , % % 3.5% thereof Germany 12, % 788,548 47, , % % 2.7% Lübeck 6, % 363,900 22, , % % 2.3% Kiel 3, % 195,301 12, , % % 2.8% Villach 2, % 201,991 7, , % % 3.1% Kassel 1, % 107,315 5, , % % 3.1% Graz 1, % 98,646 4, , % 1, % 4.2% Braunschweig 1, % 70,965 4, , % % 0.9% Innsbruck % 58,584 2, , % 1, % 2.2% Salzburg % 47,990 2, , % 1, % 1.2% Klagenfurt % 53,001 2, , % % 4.4% Lüneburg % 51,067 2, , % % 6.5% Linz % 45,114 1, , % 1, % 6.5% Suburban areas 8, % 596,708 30, , % % 4.5% thereof Austria 4, % 349,226 15, , % % 6.3% thereof Germany 3, % 247,481 15, n/a 208, % % 2.0% Hamburg 2, % 176,540 11, n/a 165, % % 0.6% Klagenfurt 1, % 118,576 4, , % % 7.3% Villach 1, % 88,604 3, , % % 10.0% Wien % 46,470 2, n/a 57, % 1, % 6.5% Berlin % 33,987 1, n/a 15, % % 6.8% Graz % 36,221 1, , % % 1.9% Salzburg % 36,942 2, , % 1, % 1.2% Kiel % 28,777 1, n/a 21, % % 3.3% Innsbruck % 22, , % 1, % 1.0% Braunschweig % 8, n/a 4, % % 7.2% Rural areas 12, % 834,750 37, n/a 581, % % 6.7% thereof Austria 7, % 555,027 20, n/a 372, % % 7.6% thereof Germany 4, % 279,723 16, n/a 208, % % 4.8% Total Austria 26, % 2,038,236 93, n/a 2,151, % 1, % 5.5% Total Germany 26, % 1,648, , n/a 1,323, % % 2.9% Total 53, % 3,686, , n/a 3,475, % % 4.3% (1) Based on portfolio data as of 31-Jan-14 including DGAG and further portfolio acquisitions. (2) CBRE, market rent for subcategories calculated as average weighted by lettable area of BUWOG portfolio. Vacancy rate (in %) 34

35 LATEST ACQUISITION THE DGAG PORTFOLIO AND PLATFORM Key Data (1) Units 18,040 Seller Joint venture of Deutsche Asset & Wealth Management and Prelios Purchase price 892m Purchase price per sqm 819 Total in-place rent 67.9m Yield / rent multiple (2) 7.6% / 13.1x Monthly in-place rent per sqm 5.32 Vacancy rate 2.6% Closing expected in Q2 2014, Closing subject to customary closing conditions CBRE Valuation (1) 917m Platform Restricted/Unrestricted (1) Restricted 45.6% Unrestricted 54.4% Units per Location (1) BUWOG AG Lübeck 6,276 BUWOG Austria AM / PS (VIE) PD (VIE) BUWOG Germany AM / PS (HAM) PD (BER) DGAG Platform Kiel (4) Hamburg Braunschweig Other 1,171 2,675 1, ,041 2,868 4,545 AM Asset Management PD Property Development PS Property Sales City limits Suburban areas (1) As of 31-Jan (2) Based on purchase price. (3) Including Ammersbek, Buchholz in der Nordheide, Ellerbek, Elmshorn, Geesthacht, Glinde, Halstenbek, Henstedt-Ulzburg, Kaltenkirchen, Norderstedt, Oststeinbek, Reinbek, Schwarzenbek, Wedel and Wentorf. 35

36 PORTFOLIO BY RENT RESTRICTIONS Comments Portfolio Split by Type of Rent (sqm) (1) A part of the Group s portfolio, both in Austria and in Germany was constructed using public subsidies and is therefore subject to rent restrictions such as WGG (costcovering rent and guideline-based rents) Rent increases are limited by federal decisions In Austria, rent potential can be unlocked through tenant fluctuation and changes in annuity charges which can be charged onto the tenant In addition, property management costs can be recovered from tenants in Austria Type of Rent by Country (1) 66% 3% 31% Unrestricted Restricted Other (including commercial) Occupied Floor Area at Period End Monthly in-place Rent at Period End Monthly in-place Rent at Period End per sqm sqm % of total EUR % of total EUR/sqm Unrestricted Austria (including WGG appropriate rent (2) and MRG (3) ) 136,904 4% 725,023 4% 5.30 Restricted Austria (including other WGG (4/5) ) 1,728,129 49% 6,348,012 39% 3.67 Unrestricted Germany 958,782 27% 5,020,419 31% 5.24 Restricted Germany 592,196 17% 2,982,514 18% 5.04 Other (including commercial) 110,792 3% (1) A 1,141,222 7% (2) a Total 3,526, % 16,217, % 4.60 (1) Based on portfolio data as of 31-Jan-14. (2) WGG (appropriate rent) includes properties for which any subsidies received in connection with the construction of residential properties has been returned under certain circumstances. Under this category, BUWOG can charge rent which is customary at the particular location. Indexation can be done on individual basis. (3) MRG category includes units for which rent is restricted at a maximum level as long as certain subsidies received in connection with the development of such units have not been repaid. Indexation is regulated. (3) D (4) WGG (cost covering) : where rent is charged according to a calculation that covers the purchase of land and the subsequent construction of buildings including costs for loans, administrative fees, a return on the equity capital used and various other components. No indexation but changes related to cost of equity and debt can be charged on to the tenant (5) WGG (BRW minus 30%, guideline-based) where rent is charged based on the statutory reference rate of Burgenland with a 30% discount, plus property management and other cost components, adjusted on a annual basis. Indexation is regulated. 36

37 Unrestricted Restricted BUWOG RENT MODELS IN AUSTRIA Austrian Rent Models Share of BUWOG s Portfolio (1) Monthly inplace rent at period end ( /m²) Description Cost-Covering Rents 14 (1) WGG Guideline- Based Rents 13 (6) WGG 71% 19% Composition of monthly net rent Refinancing of production cost (land, construction and other costs) Contribution for maintenance (EVB I = 0,43 EUR/m² and EVB II = 1,28 EUR/m² from 1 May 2014) Default component (2% of production costs) Annuity charges (usually years) increase rent Risk of change in interest charged on to tenant EVB I and EVB II subject to CPI adjustment Composition of monthly net rent Rent rate = 3.46 per sqm and month Surcharge for return on equity for land costs and default component Rent rate subject to CPI adjustment Change between restricted rent models possible as a consequence of tenant fluctuation If the object is subject to WGG, restrictions apply to portfolio duration WGG is applicable when the property was built by a non-profit cooperation BUWOG exited the nonprofit status in 2001 Market-Based Rents 13 (4) and (5) WGG 7% 5.13 Composition of monthly net rent Rent based on local, market-based rents Net rent subject to CPI adjustment Austrian Rental Law 16 in connection with 1 (4) No.1 MRG 3% 5.94 Composition of monthly net rent Rent based on local, market-based rents once subsidies are fully amortized Maximum rent (c per sqm and month) as long as subsidies have not been repaid Net rent subject to CPI adjustment The development of subsidized rental apartments into the portfolio is not subject to WGG (1) Based on total monthly in-place rent at period end ( ). 37

38 SAMPLE OF PROPERTIES IN AUSTRIA Moselgasse 2-4, 1100 Vienna 53 units 4,579 sqm lettable area Construction year: 2007 Avg. in-place rent per sqm per month: 5.40 Rental system: SMRG Salesianergasse 1b, 1030 Vienna 39 units 3,473 sqm lettable area Construction year: 1928 (renovated in 2010) Avg. in-place rent per sqm per month: 2.60 WGG -> Cost-covering rent Am Hofacker 1-7a, 8010 Graz 44 units 2,125 sqm lettable area Construction year: 1950 Avg. in-place rent per sqm per month: 2.69 WGG -> Cost-covering rent 38

39 SAMPLE OF PROPERTIES IN GERMANY Tempelhofer Damm, Berlin Tempelhof 119 units 10,454 sqm lettable area Construction year: 1927 Avg. in-place rent per sqm per month: 5.64 Unrestricted rent Portfolio Kassel 1,194 units 88,439 sqm lettable area Construction year: 1960 Avg. in-place rent per sqm per month: 4.07 Unrestricted rent Eckernförde (DGAG) 78 units 4,567sqm sqm lettable area Construction year: 2000 Avg. rent per sqm per month: 5.10 Subsidized 39

40 SAMPLE OF PROPERTY DEVELOPMENT FOR OWN PORTFOLIO Mühlgrundgasse 3, 1220 Vienna 54 units 5,098 sqm lettable area Construction year: 2012 Avg. In-place rent per sqm per month: 4.99 klima:aktiv passive house Adelheid-Popp- Gasse 1, 1220 Vienna 64 units 5,653 sqm lettable area Construction year: 2012 Avg. In-place rent per sqm per month: 4.66 Moselgasse 23-25, 1100 Wien 95 units 8,975 sqm lettable area Construction year: 2011 Avg. In-place rent per sqm per month:

41 CONVERTIBLE BOND KEY TERMS Details on Convertible Bond (1) Expected issuance date April 2014 Price % Coupon 3.5% p.a. Maturity April 2019 Conversion Reference Share Price Soft call (2) of BUWOG AG 9 months after listing until maturity at 40% conversion premium Arithmetic average of the daily closing prices of the Share in the XETRA System of the Frankfurt Stock Exchange on each of the five consecutive trading days from and including the listing commencement date 3 years after listing of BUWOG shares Hard call (3) of BUWOG AG During first 9 months after listing of BUWOG shares Lock-Up Period 3 months for IMMOFINANZ Dividend protection Full dividend protection (1) Subject to market conditions at closing and finalization of loan documentation. (2) Conversion Call. (3) Anti-Dilution-Call. 41

42 CONTACT DETAILS AND FINANCIAL CALENDAR Investor Relations Holger Lueth, Head of Investor Relations and Corporate Finance T: T: E: investor@buwog.com E: holger.lueth@buwog.at W: Stock Symbols Frankfurt Stock Exchange: BWO GR Vienna Stock Exchange: BWO AV Warsaw Stock Exchange: BWO PW ISIN: AT00BUWOG001 Mag. Daniel Riedl FRICS CEO Hietzinger Kai 131, 1130 Vienna, Austria Tel.: daniel.riedl@buwog.at Dr. Ronald Roos CFO Hietzinger Kai 131, 1130 Vienna, Austria Tel.: ronald.roos@buwog.at 42

43 THANK YOU FOR YOUR ATTENTION