conwert company presentation

+ March 2017 conwert company presentation Results 1-12/2016

conwert ist ein voll integriertes Immobilienunternehmen mit Schwerpunkt auf Wohnimmobilien und Zinshäuser in Österreich und Deutschland. Dieser Fokus wird durch ein Gewerbeimmobilienportfolio ergänzt. conwert besitzt, entwickelt, vermietet und verkauft innerstädtische Immobilien. Das Geschäftsmodell der conwert basiert auf drei Säulen: dem Portfolio Management, der Entwicklung bzw. dem Verkauf von Immobilien und dem Immobilien- Dienstleistungsbereich. conwert setzt bei der Umsetzung ihrer Ziele auf eine transparente Unternehmensstruktur und eine klare Strategie. Ein für alle Mitarbeiter des Konzerns geltender Verhaltenskodex legt die ethischen Grundsätze des unternehmerischen Handelns für die conwert- Gruppe fest und regelt den Umgang der Mitarbeiter untereinander als auch mit den Stakeholdern. Content + Highlights Q4 2016 + Performance Overview + Portfolio Strategy + Financing + Financials + Guidance + Appendix

+ Highlights Q4 2016 conwert with very strong Results 2016 + FFO I up almost 50% to 80 mn + 331 mn commercial portfolio sale to HanseMerkur closed after year-end; only around 11% non-core properties left in portfolio + LTV reduced to 40.8% + Average interest rate reduced to <2% + Net profit of about 124 mn highest net profit of conwert ever + Vacancy rate of 2.8% reached in core residential portfolio target of below 3% attained + Net cold rent like-for-like increased by 2.9 % in core residential portfolio 3

+ Performance Overview Performance at a Glance 1-12/2016 1-12/2015 Change NCR /sqm/m 6.44 6.42 0.3% NCR like-for-like core residential /sqm/m 5.97 5.81 2.9% Vacancy rate 1) % 5.2 6.6-21.9% Vacancy rate core residential 1) % 2.8 3.1-12.0% FFO I 2) mn 80.0 53.4 49.7% FFO I per share 3) 0.85 0.64 32.5% FFO I per avg. usable space /ø sqm 37.62 22.63 66.2% Total usable space 1,000 sqm 2,042 2,176-6.1% 31/12/2016 31/12/2015 Change Fair value 4) mn 2,821.6 2,735.0 3.2% Initial yield of portfolio % 5.5 5.9-7.4% Fair value 4) like-for-like mn 2,721.1 2,455.6 10.8% EPRA Net Asset Value 5) mn 1,695 1,381 22.7% EPRA Net Asset Value per share 5) 6) 16.89 15.61 8.2% 1) As defined by conwert calculated on basis of the usable space; according to definitions by competitors in Germany on basis of the number of residential units, vacancy rate is 2.7 % for the core residential portfolio 2) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales income -/+ revaluation result + depreciation and value adjustment + non-cash part and one off costs financial result + one-off charges - cash taxes for rental business 3) Based on average number of shares outstanding of 94.6 mn in 1-12/2016 and of 83.7 mn in 1-12/2015 4) Incl. IFRS 5 and SELL (at fair values) 5) Retrospective adjustment of the equity breakdown to majority and minority shareholders due to the reallocation of a capital reserve according to IAS 8.41 for 2015 6) Based on number of shares outstanding less own shares of 100.3 mn as per 31 December 2016 and 88.5 mn as per 31 December 2015 Glossary: NCR = net cold rent 5

+ Performance Overview Operative Business significantly Optimized since 2014 High increase in efficiency 80 FFO I (in mn) 34.8 60 40 53.4 20 00 80.0 2014 2015 2016 70 65 Adjusted Rental EBITDA Margin (in %) 450 400 Employees in FTE (regular capacity as at 31 December) 60 55 50 69.0 350 446.0 65.7 421.4 61.1 300 315.7 250 2014 2015 2016 2014 2015 2016 6

+ Performance Overview Consistent Portfolio Streamlining results in Increased Rentability Non core portfolio sharply reduced KPIs optimized Share of non core portfolio (related to FV in %) 30 25 20 15 10 05 00 36.7 28.9 11.2 1) 2014 2015 2016 04 Vacancy rate core portfolio (in %) 03 Ø Net cold rent growth Core res. portfolio, like-for-like (in %) 02 4.4 3.1 02 2.7 01 2.2 2.6 2.9 00 2014 2015 2016 1) Without commercial portfolio Hanse Merkur, sold in Q1 2017 00 2014 2015 2016 7

+ Performance Overview Operational and Portfolio Performance since 2015 + Progress on operational and financial level 2015 2016 Development Ø Interest rate (cash-effective) 2.32% 1.97% Adj. Rental EBITDA Margin 65.7% 69.0% Non-core share of total portfolio (fair value) 28.9% 11.2% 1) Vacancy reduction by 26.6% 21.9% Net cold rent growth (core portfolio, likefor-like) 2.6% 2.9% FFO I 53.4 mn 80.0 mn Number of Employees (FTE regular capacity) 421.4 315.7 Share price (in ) 14.04 16.15 2) / 16.22 3) In addition: group structure simplified (ECO Business Immobilien GmbH, Barmer Wohnungsbau GmbH, KWG Kommunale Wohnen AG) 1) Excluding commercial portfolio Hanse Merkur 2) Last close before Vonovia announcement 3) On 30 December 2016 8

+ Portfolio Strategy Main Portfolio KPIs Portfolio segment Units 1) (No) FV 2) ( mn) % of total FV NCR ( /sqm) l-f-l NCR growth (% yoy) Vacancy rate (%) l-f-l Vacancy rate dvpt (% yoy) FV/NCR (x) NCR/FV (%) Premium markets 8,953 1,220.9 43.3 6.68 2.1 1.8-10.9 24.7 4.1 Core markets 12,040 739.2 26.2 5.49 4.4 3.1-19.2 14.6 6.8 Core assets 1,710 72.0 2.6 5.21 0.5 5.6 1.9 11.9 8.4 Privatisation 511 72.0 2.6 4.51-2.2 3.6 78.8 30.8 3.2 Core residential portfolio 23,214 2,104.1 74.6 5.93 2.9 2.8-12.3 19.4 5.2 Premium commercial 357 175.9 6.2 9.58 2.5 2.2-24.8 16.2 6.2 Core portfolio 23,571 2,280.0 80.8 6.14 2.9 2.7-13.0 19.1 5.2 Non-core residential 1,311 60.5 2.1 5.35 0.9 8.7-19.7 13.3 7.5 Non-core commercial 1,829 481.1 17.1 8.40 2.0 16.2 22.5 16.0 6.3 Total portfolio 26,711 2,821.6 100.0 6.44 2.4 5.2 2.3 18.3 5.5 + Share of non-core reduced to ~19% measured by Fair Value + Including the closing of commercial non-core deal in Q1 around 11% 1) Excl. parking spaces 2) Incl. IFRS 5 and SELL (at fair values) Glossary: FV = Fair Value; NCR = Net Cold Rent; l-f-l = like-for-like 10

+ Portfolio Strategy & Valuation Result of Portfolio Valuation End of 2016 - Overview Strong adjustments in line with full-year guidance 31/12/2016 31/12/2015 Change FV mn 2,821.6 2,735.0 3.2% Absolute Like-for-Like Like-for-Like core residential FV /sqm 1,381.5 1,257.0 9.9% FV/NCR multiple x 18.3 17.0 8.0% Initial yield % 5.5 5.9-7.4% FV mn 2,721.1 2,455.6 10.8% FV /sqm 1,412.4 1,274.6 10.8% FV/NCR multiple x 18.6 17.6 5.4% Initial yield % 5.4 5.7-5.1% FV mn 2,009.7 1,747.1 15.0% FV /sqm 1,403.0 1,220.4 15.0% FV/NCR multiple x 19.8 18.0 9.6% Initial yield % 5.1 5.5-8.8% + Net revaluation gains of 206.9 mn exceeds guidance for 2016 of 80-140 mn by far + Excellent valuation result: 206.9 mn Glossary: FV = Fair Value; NCR = net cold rent 11

+ Financing Solid Capital Structure & Conservative Financial Policies LTV evolution (%) 49.2% 46.3% 2) Dec 2015 Reported 40.8% Dec 2016 Pro forma convertible conversion + Current cash-effective interest rate of 1.97 % after hedging + Approx. 5.6-year average term of all loans including corporate bond 4) + Broad and long-term distribution of debt financing (with 43 financing institutions) + Over 70% of debt hedged against interest rises + LTV currently at 40.8% + Investment Grade rating from S&P (BBB+) Current maturity profile 3) ( mn) Financial policies 65.0 1 Leverage policy + EBITDA interest coverage of more than 2.0x + LTV in low forties range targeted 248.7 77.3 90.6 Mortgage-backed loans 73.7 Bond 42.1 174.8 2 3 Maintain strong liquidity profile Other 1) Considering 5.25% convertible conversion in January 2016 2) Considering 5.25% convertible conversion in January 2016 and 4.5% convertible conversion in September 2016 3) As of 31/12/2016 4) Decline of average term is mainly a result of (scheduled) loan repayment in 2016 respectively 2017 relating to sales within the non-core portfolio 51.2 40.8 2017 2018 2019 2020 2021 2022 2023 2024 + Ensure that sufficient liquidity is maintained to cover maturities in the next 12-18 months + Ongoing discussions with further lenders on prolongation of mortgage loans + Hedging ratio target of approx. 70-80% + Stable dividend policy at 60% of FFO I 13

+ Financing Balance Sheet Structure as of 31 December 2016 LTV ratio improved significantly Balance sheet ( mn) Breakdown of financial liabilities ( mn) Others Property assets 2,987 203 2,784 2,987 337 65 1,133 1,452 Other liabilities Bond liabilities Bank debt Equity Bond debt Bank debt 1,198 65 196 190 747 Share of debt of retail bond 30 banks Range: < 20mn 6 banks Range: 20-50mn 7 banks Range: > 50mn Assets as of 31/12/2016 Equity and liabilities as of 31/12/2016 31/12/2016 Balance sheet indicators Loan-to-value (LTV) incl. cash and cash equivalents Loan-to-value (LTV) (in-the-money convertibles as equity) 31/12/2016 31/12/2015 40.8 % 49.2% 1) 40.8 % 46.3% 2) Equity ratio 48.6 % 43.7% 3) Equity ratio (in-the-money convertible as equity) 48.6 % 48.1% 2)3) 1) Considering 5.25% convertible conversion in January 2016 2) Considering 5.25% convertible conversion in January 2016 and 4.5% convertible conversion in September 2016 3) Retrospective adjustment of the equity breakdown to majority and minority shareholders due to the reallocation of a capital reserve according to IAS 8.41 for 2015 14

+ Financials Overview of 1-12/2016 Income Statement Successful year 2016 ( mn unless otherwise indicated) 1-12/2016 1-12/2015 Change Rental income 211.2 226.1-6.6% Net proceeds on property sales 14.2 18.9-25.0% Service revenues 7.4 7.7-3.4% Net result from fair value adjustments 211.9 66.9 216.9% Earnings before interest and tax (EBIT) 297.8 181.4 64.2% Net finance result (70.4) (80.6) -12.7% Earnings before tax (EBT) 227.5 100.7 125.8% Profit/loss after tax 124.1 82.1 1) 51.1% Profit/loss after non-controlling interests 116.9 78.1 1) 49.6% Recurring FFO I 2) 80.0 53.4 49.7% Cash Profit 77.7 61.9 25.5% Net rental result (NRR) 139.2 148.8-6.5% NRR margin (in %) 65.9 65.8 0.1% NRR margin (adjusted) (in %) 3) 87.2 87.2 0.1% Comment Impact of sales of non-core assets Yield compression and rent increases resulted in strong net value increase of portfolio Despite negative non-cash effects of remaining swaps sharp decrease of cost of debt Strongest net result in group history Strongest FFO I due to operational success and reduced financing cost NRR margin slightly increased 1) Retrospective adjustment of the equity breakdown to majority and minority shareholders due to the reallocation of a capital reserve according to IAS 8.41 for 2015. 2) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales income -/+ revaluation result + depreciation and value adjustment + non-cash part and one off costs financial result + one-off charges - cash taxes for rental business 3) NRR margin (adjusted): NRR/rental income less running costs charged to tenants 16

+ Financials FFO Overview Very strong year 2016 ( mn) 1-12/2016 1-12/2015 EBT 227.5 100.7 Difference between sales and carrying amount of sold properties (14.2) (18.9) Operating expenses of sales result 13.7 7.6 Revaluation result (206.9) (66.0) Depreciation and value adjustment 1.8 1.2 Non-cash part and one off costs financial result 40.3 21.9 One-off charges 17.8 6.8 Restructuring costs 2.1 2.8 Provisions for legal disputes / taxes from previous periods / debt capital market preparation / enforcement audit (2015) 4.2 0.9 Vonovia / Adler / Deutsche Wohnen / due diligence large projects 11.5 3.1 Cash taxes for rental business - - FFO I 1) 80.0 53.4 Difference between sales and carrying amount of sold properties 14.2 18.9 Operating expenses of sales result (13.7) (7.6) FFO II 2) 80.5 64.8 Cash profit 3) 77.7 61.9 1) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales income -/+ revaluation result + depreciation and value adjustment + non-cash part and one off costs financial result + one-off charges - cash taxes for rental business 2) FFO II: FFO I + difference between sales and carrying amount of sold properties deduction of operating expenses of sales result 3) Cash profit: FFO II - cash taxes for sales 17

+ Financials NAV Composition 31 December 2016 Strong NAV/share increase due to portfolio value expansion (in per share unless otherwise indicated) 31/12/2016 31/12/2015 Change Equity (in mn, w/o non-controlling interests) 1) 1,416 1,196 18.4% Number of shares on reporting date less treasury shares (no. in thousand shares) 100,330 88,489 13.4% Equity attr. to shareholders of conwert 1) 14.11 13.52 4.4% Revaluation of Sell portfolio 0.27 0.35-23.7% Fair value of financial instruments 0.21 0.28-25.6% Long-term financing contribution of tenants 0.08 0.10-19.8% Deferred taxes 2.21 1.35 63.8% Undiluted EPRA NAV 1) 16.89 15.61 8.2% Share price discount to EPRA NAV (in %) 4.0% 10.1% 60.5% 1) Retrospective adjustment of the equity breakdown to majority and minority shareholders due to the reallocation of a capital reserve according to IAS 8.41 for 2015 18

+ Financials Financial Results Q4 2016 Significant decrease of cash interest cost ( mn) 1-12/2016 1-12/2015 Cash cost of mortgage loans, convertible bonds and retail bond Non-cash write-ups for convertible bonds & buyback of convertible bonds (30.3) (58.1) (0.8) (1.8) Financial results after write-ups (31.1) (59.9) of value of derivatives and deduction of cash flow hedge reserve (33.8) (16.2) Prepayment penalty (4.0) (0.8) Comment Significant decrease of cash cost of debt following breakage and restructuring of swaps end of 2015 as well as reduction of liabilities Decrease of interest rate landscape resulted in negative non-cash impact in 2016 IFRS cash costs (3.6) (4.9) Result of associates, interest paid to conwert and others 2.1 1.2 Net finance costs (70.4) (80.6) Net finance cost decreased despite negative impact of derivatives 19

+ Strategy Summary & Guidance Guidance 2017 2016 Guidance 2017 Recurring FFO I 1) (excl. sales income) 80.0 mn 64-74 mn Non-core sales volume 286.7 mn closed in 2016 617.6 mn incl. closing of commercial portfolio sale in Q1 2017 400-450 mn LTV 40.8% Below 40% 1) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales income -/+ revaluation result + depreciation and value adjustment + non-cash part and one off costs financial result + one-off charges - cash taxes for rental business 21

+ Appendix Portfolio by Region Detailed overview as of 31 December 2016 Units (No) Parking spaces (No) Usable space 2) (1,000 sqm) Vacancy (%) of which strategic vacancies (%) change of vacancies (%) FV Yield (%) Change in yield (%) Fair Value (T ) NCR ( /sqm) Austria Core residential 2,431 770 188.6 3.2 0.4-18.3% 3.4-2.8% 422,193 6.29 Core commercial 104 124 18.4 0.5-17.2% 4.7 0.8% 56,400 11.66 Non-core 1,479 2,778 235.9 17.2 4.8 38.4% 5.8-3.4% 354,088 8.16 SUBTOT Austria 4,014 3,672 442.9 10.5 2.7 23.0% 4.5-5.4% 832,681 7.46 Germany Core residential 20,783 4,400 1,351.5 2.7 0.0-10.1% 5.6-10.3% 1,681,911 5.88 Core commercial 253 892 73.8 2.7 0.4-29.9% 6.9-3.5% 119,482 9.06 Non-core 1,481 776 148.9 8.2 - -43.9% 7.3 1.5% 156,001 6.84 SUBTOT Germany 22,517 6,068 1,574.3 3.2 ~0.0-40.1% 5.8-10.2% 1,957,394 6.11 OTHER 1) 180 302 25.3 31.6 - -28.1% 8.4 43.8% 31,555 11.34 Core residential 23,214 5,170 1,540.2 2.8 0.1-11.7% 5.2-7.7% 2,104,104 5.93 Core commercial 357 1,016 92.2 2.2 0.3-29.1% 6.2-2.5% 175,882 9.58 SUBTOTAL core 23,571 6,186 1,632.4 2.7 0.1-12.7% 5.2-7.4% 2,279,986 6.14 Non-core 3,140 3,856 410.1 14.8 2.8-1.2% 6.4-1.5% 541,644 7.80 TOTAL conwert Group 26,711 10,042 2,042.5 5.2 0.6-21.9% 5.5-7.4% 2,821,630 6.44 1) Hungary, Luxembourg, Ukraine 2) Excl. parking spaces Glossary: FV = Fair Value; NCR = Net Cold Rent 23

Disclaimer This presentation includes various forecasts and expectations as well as statements concerning the future development of the conwert Group. These statements are based on assumptions and estimates, and may be connected with known and/or unknown risks and uncertainties. Actual developments and results as well as the financial, earnings and asset position of the Group may therefore differ materially from these expectations and assumptions. The reasons for such variances may include market fluctuations, the development of property prices and rents as well as financial markets and foreign exchange rates, changes in national or international laws and regulations or fundamental changes in the economic and political environment. For this reason, futureoriented statements are only related to the day on which they are made. conwert will accept no obligation to revise or adjust such statements to reflect new information or future results.