Análisis DAFO

in the 2013/14 financial year, various loans on standing investments were refinanced or extended, as scheduled and at the best possible interest rates. Another important development during the period under review was the acquisition of four property portfolios with long-term debt volumes totalling around eUR 79 million. in total, the BUWOG Group was able to continue its funding operations on sustainably favourable terms, thus further improving the Recurring FFO available for dividends and investment.

financing stRUctURe

the total financial liabilities of the BUWOG Group consist of liabilities to banks, liabilities to local authorities and liabilities under a convertible bond. the remaining financial liabilities of the BUWOG Group as of 30 April 2014, which are exclusively denominated in euros, amounted to approx. eUR  1,504.2 million. this diagram presents an overview of the financing structure of the BUWOG Group as of 30 April 2014.

Residential constRUction sUbsidies in aUstRia

One special characteristic of the BUWOG Group’s financing operations is subsidised loans in Austria, accounting for approx. 35% of the amount out - stan ding under all financial liabilities. the majority of construction projects executed by BUWOG Group were financed with the aid of residential construction

subsidies from the public sector – with terms spanning several decades. the residential construction subsidies granted to BUWOG Group can be classified by the following criteria:

- provincial subsidies for construction and refurbishment

- types of subsidy: annuity subsidies, construction cost subsidies or direct loans

the subsidies are defined in the residential building codes for the respective provinces. Despite the many differences in the details of the legal provisions, the laws governing residential construction subsidies are all based on several fundamental principles:

- Rents are subject to cost coverage throughout the term of the subsidy.

- certain restrictions, such as temporary restrictions on sale, are required in order to secure the residential construction subsidies.

- Subsidy misuse can incur sanctions, such as, especially, premature repayment.

All of the subsidised loans granted to BUWOG Group feature the aforementioned criteria and incur interest at an average rate of around 1.37% as of 30 April 2014. Fixed interest is charged on the subsidised loans and some agreements are subject to annuity increases. the annuity increases are known at the time of contract signature, and are strictly passed on in the form of rent increases.

stRUctURe of tHe aMoUnt oUtstanding UndeR financial liabilities

as of 30 April 2014 convertible bond 17% local authorities/ Subsidised loans 35% Bank loans 48% total: eUR 1,504 Million

ManageMent RepoRt

financing

financing paRtneRs and RepayMent stRUctURe

the BUWOG Group benefits from its long- standing, historical business relations with over 50 banks and financial institutions in Austria and Germany. its most important contractual partners are Raiffeisenlandesbank nÖ-Wien, Oberbank, Berliner Sparkasse, Bank Austria and erste Bank. By spreading its financing agreements across various lenders, BUWOG Group avoids dependencies, while at the same time gaining broad access to a wide range of funding sources.

in keeping with the long-term nature of its core business, BUWOG Group strives to secure a long-term and balanced financing structure to safeguard its defensive risk profile. Most of its financing contracts are based on long-term agreements. the average residual term is approx. 14.6 years.

the repayment structure by maturity is as follows:

by April 2015 by April 2016 by April 2017 by April 2018 by April 2019 by April 2020 by April 2021 by April 2022 by April 2023 by April 2024 from May 2024 RepayMent by MatURity

p.a., basic amount outstanding in eUR million

n rEGulAr rEpAymEnts n FinAl rEpAymEnt n conVErtiBlE Bond

56 56 55 55 52 51 51 45 15 36 _{3 7 23} 260 51 42 49 85 513 Key financing paRtneRs

as of 30 April 2014 erste Bank 7% Others (52 banks) 41% Raiffeisen- landesbank nÖ-Wien 27% Oberbank 9% Berliner Sparkasse 8% Bank Austria 8% total: eUR 716.8 Million

the following table summarises the key financing parameters as of 30 April 2014:

the BUWOG Group ltV as of the balance sheet date was 35.9%. Further details of the calculation of ltV can be found in the “loan-to-value” section on page 142 and the section information on the Assets, liabilities and Financial positions on page 136.

inteRest Rate stRUctURe

in keeping with the long-term nature of the financing structure, around 85% of the agreed financing contracts are hedged against the risk of interest rate changes with fixed interest rate agreements and/or interest rate swaps. the weighted average nominal interest rate is 2.45% (based on weighted iFRS carrying amounts: 2.58%).

deRivatives

BUWOG Group uses derivative financial instruments to hedge against the risk of changes in interest rates. All derivatives are used exclusively to hedge interest rates. their main parameters such as term and repayment structures are adapted to the relevant underlying transaction.

As of the balance sheet date, 30 April 2014, the BUWOG Group held derivatives with a reference amount of eUR 377.8 million. A total of approx. 25% of financial liabilities are thus hedged by swaps against interest- rate risk.

Bank liabilities 716.8 48% 2.87% 13.4 local authorities/Subsidised loans 527.4 35% 1.37% 21.1 convertible bond 260.0 17% 3.50% 5.0

bUWog group 1,504.2 100% 2.45% 14.6

financial liabilities

Amount outstanding

in eUR million Share Ø interest rate Ø term in years

inteRest Rate stRUctURe

Floating rate loans 15% Fixed interest loans 60% total: eUR 1,504 Million Hedged loans (swaps) 25%

ManageMent RepoRt

financing

conveRtible bond

the BUWOG AG convertible bond has a nominal value of eUR 260 million. As of 30 April 2014, the core parameters of the convertible bond were as follows:

Further details of the convertible bond can be found in the “information on capital”, page 155.

incl. interest as of 30 April 2014 in eUR Reference value as of 30 April 2014 in eUR Fixed

interest rate Maturity Variable

element Market value

interest rate of 0.5%–3%

interest rate swap (Deka Bank) 3-M-euribor -338,542 21,489,000 1.39% 31 Dec 2021 interest rate swap (Deka Bank) 3-M-euribor -61,146 3,880,000 1.39% 31 Dec 2021 interest rate swap (lBB) 3-M-euribor -1,361,964 59,312,500 1.90% 31 Aug 2015 interest rate swap (HVB) 3-M-euribor -835,590 13,858,000 2.13% 29 Sep 2023 interest rate swap (RlB nÖ-Wien) 6-M-euribor -1,587,806 23,900,000 2.41% 30 nov 2036 interest rate swap (Hypo Steiermark) 6-M-euribor -1,495,133 23,000,000 2.50% 31 Dec 2036 interest rate swap (Bank Austria) 6-M-euribor -1,922,164 28,680,000 2.51% 28 nov 2036 interest rate swap (RlB nÖ-Wien) 6-M-euribor -2,022,944 28,680,000 2.54% 30 nov 2036 interest rate swap (BAWAG) 6-M-euribor -1,267,352 12,750,000 2.85% 31 Dec 2030 interest rate swap (Hypo Steiermark) 6-M-euribor -1,851,089 15,635,000 2.99% 30 Sep 2039

number of derivatives: 10 -12,743,729 231,184,500 interest rate of 3%–4.5%

interest rate swap (Hypo Steiermark) 6-M-euribor -982,813 8,159,000 3.01% 30 Sep 2039 interest rate swap (Hypo Steiermark) 6-M-euribor -3,110,454 25,993,000 3.09% 30 Sep 2031 interest rate swap (RlB nÖ-Wien) 6-M-euribor -6,007,790 49,534,000 3.11% 30 Sep 2031 interest rate swap (RlB nÖ-Wien) 6-M-euribor -3,304,304 27,244,000 3.11% 30 Sep 2031 interest rate swap (Bank Austria) 6-M-euribor -55,987 1,478,000 3.22% 30 Sep 2015 interest rate swap (Bank Austria) 6-M-euribor -139,679 4,980,000 3.26% 30 Dec 2014 interest rate swap (Bank Austria) 6-M-euribor -144,988 3,342,000 3.37% 30 Sep 2015

number of derivatives: 7 -13,746,015 120,730,000 interest rate above 4.5%

interest rate swap

(Hypothekenbank Frankfurt) 3-M-euribor -4,239,945 25,900,000 4.58% 30 Jun 2018

number of derivatives: 1 -4,239,945 25,900,000 total derivatives: 18 -30,729,690 377,814,500 2.67% deRivatives iSin Maturity interest rate nominal value as of 30 April 2013 in eUR million conversions 2013/14 in teUR Repurchased/ redeemed/ issued in 2013/14 in teUR nominal value as of 30 April 2014 in eUR million conversion price in eUR