RE CSR-Report 2014 (EN)

 HELLOSUSTAINABILITYH  ALLONACHHALTIGKEIT

porting sponsibility Sustainability Report 2014 of Raiffeisen evolution

Legal notice Raiffeisen evolution project development GmbH Ernst-Melchior-Gasse 22, 1020 Vienna, Austria T +43 1 71706 0, F +43 1 71706 410, [email protected] www.raiffeisenevolution.comPublisher Gerald Beck, MRICS, & Markus Neurauter | Board of DirectorsEditorial team Beatrix Strohmaier (Human Resources), Mark Pirker (Risk Management) and Birgit Wagner (Corporate Communications | Freelance)The publisher and editorial team form the company’s CSR task force and are jointly responsible for thisSustainability Report.Please direct questions and suggestions to [email protected] consulting Peter Engert, Corsor GmbHTranslation Interlingua | Translation is in British English (BE)Design and layout Michael PaulusIllustrations LWZ animation & designPhotos Raiffeisen evolution (pages 11, 25, 38, 51, 53), Michael Sazel (pages 05, 47), Fotostudio Menzl (pages 25, 55, 56), ÖGNI/DGNB (pages 48, 65), Anna Blau (page 49) Based on feedback from our stakeholders, this report – our second Sustainability Report – is an online report.We have deliberately chosen not to produce a printed version.The report is published in German and English.Whilst we have taken every care with the production of this report, all of the information presented here issubject to correction. Any liability of the publisher is excluded. Developing the future. Since 2003. 03

ContentA word first. 05We in numbers. 06We. Raiffeisen evolution. 09We make a report. 14 Materiality analysis 16We & society 19We & market 27We & people 33We & environment 41We & applied sustainability 47Annex 59 Declaration of fundamental values | Code of Conduct (excerpt) 60 Consolidated companies 62 ÖGNI Certificates 2014 65 G4 references 66 Developing the future. Since 2003. 04

A word first. G4-1 Markus Neurauter & Gerald Beck, Board of DirectorsDear Readers,the world is changing, and with it the value and target stroke, but we can help to make it worth living in forsystems in companies. Exponential population growth future generations and keep it that way.is leading to a shortage of resources. Maintaininglevels of prosperity and distributing them more fairly We take a broader view by also dealing with topicswill require more efficient utilisation and alternative that go beyond our actual business and scope ofapproaches. Climate change has also long since be- service. For us, the value creation of a property doescome a global problem that poses new challenges to not end with a good return, but when our customerscompanies around the world, so it is hardly surprising are satisfied and feel good. By which we mean allto learn that everyone is talking about the topic customers – present and future.of sustainability as a possible solution. Cars, food,events, travel and even property – there is hardly We presented our first Sustainability Report at ouran industry left that hasn’t been affected. The term customer and partner event “Let’s Talk About Thesticks to us all like a magnet and we are constantly Future” on 16 September 2014 in Vienna. The reactionsconfronted with it. were positive and we were very pleased with the feedback. We received many valuable suggestions, allSo does sustainable mean everything that doesn’t of which we have tried to implement in this follow-upharm the environment, or does it refer to measures report.that help not to worsen the state of the environ-ment? Do I lead a sustainable lifestyle if I only We are pleased to present you today with our secondconsume products that are labelled with seals of Sustainability Report, which covers the year 2014.quality, or if I say goodbye to my car, lengthy long-distance holidays and printed books, and switch to Please send any feedback and inquiries toa bicycle, staycations and digital publications? [email protected] – our internal CSR task force will send you a reply just a quickly as it can.We think that everyone should define the territoryfor themselves. Wishing you all the bestFor us, at any rate, sustainability means leading our Markus Neurauter and Gerald Beckcompany towards a secure future and acting withthat future in mind. In doing so, we take account ofpeople, resources and the environment. What it alsomeans for us is taking responsibility. For how we actand what we do. We can’t make the world better at a 05

We in numbers – 201487,727 completed m2 104 RE_Employees (gross floor area) in Austria, SEE & CEE71,867,000 investments 56 women | 48 men (in €) 17.66 tonnes of CO2 saved throughCompleted & sold projects electricity from renewable energies— P romenada – Shopping & Entertainment Awards & ÖGNI (pre-)certificates Centre | Bucharest (Romania) — Real Estate Brand Award— T he August, Hotel 5* plus | • Austria’s most powerful project developer brand Prague (Czech Republic) — Capital Finance International (CFI Awards) • Nominee – Best Real Estate Developer— Walcherstraße 5 + 5A, residential project | — GBB Award Vienna (Austria) • F CC Promenada – “Projects” –Construction starts DGNB record result — Central & Eastern European Real Estate— Engerthstraße, residential project | Vienna (Austria)— W OHN-DELTA Alte Donau, residential project | Quality Awards • F CC Promenada – Building of the Year (SEE) Vienna (Austria) — SEE Real Estate Awards— FERIO Wawer, retail | Warsaw (Poland) • F CC Promenada – Overall Project of the Year — Business SuperbrandsStakeholder dialogue • R aiffeisen evolution (Budapest) — CEE CIJ AwardsFirst survey of our stakeholders = • R aiffeisen evolution – Commercial Developer145 sets of valuable feedback of the Year • R aiffeisen evolution – Environmental,RE_Academy Social & Sustainability AwardHours of further training • F CC Promenada – Best Retail Developmentof all employees of the Year — ÖGNI awards • R esidence 1, Budapest – Gold certificate • R esidence 2, Budapest – Gold certificate • R umbach Center, Budapest – Gold certificate • S quare Plus, Vienna – Gold pre-certificate • R TC Wawer, Warsaw – Silver pre-certificate 2,364We in numbers. 06

We in numbers – since 20031,971 constructed Forward-looking concepts apartments928 constructed hotel rooms676,692 implemented gross floor area (in m2)186,656 service projects * Remarks on the figures: In 2013, we also included projects that gross floor area (in m²) were sold off-plan amongst the completed projects. For 2014 and future years, we have decided to report only on projects we have1,229,672,000 actually implemented.investments (in €)We in numbers. 07

WE.RAIFFEISEN EVOLUTION.

We. Raiffeisen evolution.As a project developer, we have been successfully We usually award the structural activities to a generalhelping to shape the European property industry for contractor, who is selected by means of a tender12 years. We have lived through the euphoric times exercise. The general contractor is responsible forin Eastern Europe as well as the time after the eco- finding suitable service providers and suppliers fornomic crisis and the bursting of many (property) all necessary areas of construction (e.g. dry lining orbubbles. electrical installation work). It should be noted here that we always instruct our partners to familiariseWe want to develop and implement property projects themselves with the local infrastructure and localfor many generations, now and in the future. economic conditions. The construction phase takes 18 to 24 months on average.We are. G4-3, G4-5 In parallel with this, we begin marketing the property.Raiffeisen evolution project development GmbH In the area of residential in particular, we usuallyis a project development company for high-end manage to successfully sell a good 90% of theproperties. dwellings by the time construction is complete. We have already achieved very goods results in this regardIn brief. with office and retail properties (e.g. 2nd Central –We buy parcels of land, consider (in advance, Office am Park, Vienna, or the Promenada mall-of course) what we can, should or are allowed to project in Bucharest).build on them, manage and support the entireconstruction process and finally sell the finished Our goal is to sell projects within 24 months ofproperty. Sounds really easy, doesn’t it? But it isn’t completion.always. In this Sustainability Report, you can readabout the challenges we have to overcome and how Specialists with many years of professional experiencewe distinguish ourselves from our competitors. support the processes from the initial project idea to the handover of the properties to the tenants orIt all started with the merger of several property purchasers. The available know-how enables us toequity participations of Raiffeisen and STRABAG in cover all activities along the value creation chain ofJuly 2003. Since then, we have operated in Austria properties with competencies in house. We thereforeand Eastern/Southeastern Europe. Our headquarters personally render most of the services that matterare located in Vienna. to our users and customers or promise to deliver added value. This is how we vouch for the quality ofOur product portfolio comprises residential and our services, which represents one of the principlesoffice buildings, hotels, shopping and retail parks as for partnership-style customer relationships over thewell as mixed-use objects. We develop and implement long term.property projects in urban areas and regions withwell-developed infrastructure and concentrate on We also implement projects on behalf of third partiesfirst and second-tier cities and towns. and make our know-how available as a service provider.The development of a project begins before theacquisition of a suitable plot of land or a viableproperty. We know the markets and evaluate themconstantly. We invest where it makes sense andwhere the markets are characterised by stabilityor growth. The project development phase canlast for up to two years before we make a start onconstruction.We. Raiffeisen evolution. 09

We do | Our value creation chain. G4-12 Needs analysis Location analysis Dismantling Market analysis Renovation | Conversion | Feasibility studies Land purchase Subsequent use Creation of utilisation concepts (depending on the Financing useful economic life) Planning Operation (maintenance, servicing, refurbishment, modernisation) Tender, award and hand-over of operational management Letting and/or sale Marketing Control and monitoring of planning and construction Award of construction workOur concepts. G4-4, G4-EN27 WOHN-BASE©: Smart living with lots of comfort The concept is based on six pillars: Security, Comfort,Since 2006, we have been implementing projects Communication, Homeworking, Entertainment andbased on the future concepts WOHN-BASE©, Cost-Saving.ECO-BASE©, HUMAN-BASE© and econogy-offices,which we developed ourselves. We identified the Trendsetting technologies are planned and imple-trend very early on and prepared ourselves for mented in all these areas. In the context of “Smart-possible changes caused by the demographic shift living”, we apply the WOHN-BASE© concept to enablein society. a greater degree of social networking, flexibility and quality of life for residents.Our residential concepts have developed into brandsthat enhance the image of the company and con-tribute positively to business success. In this section,we give you just a brief overview of our concepts.You can find more information in the section “We &applied sustainability” starting on page 47.We. Raiffeisen evolution. 10

ECO-BASE©: practised energy efficiency 2000s, gets to the heart of the mutual relativity ofSaving energy, protecting the environment and, economic and ecological behaviour.incidentally, lowering costs. This concept is auto-matically taken into consideration for each new Our goal is to construct office properties in Austriaresidential project. We therefore build exclusively and abroad that drive the symbiosis of ecologylow-energy houses that meet the highest possible and economy sustainably forwards under the labelenergy standard and have a heating requirement “econogy-offices”. An econogy-office offers com-that is far below that of an ordinary new building panies in a wide range of industries comfortable(around 80 to 120 kWh/m2a). and representative office spaces, reduces the costs of their ecologically responsible operationThe specific construction considerably reduces and guarantees a healthy working atmosphere.the energy need compared to conventional homes.In addition to reducing CO2 emissions, this also FERIO: the friendlysaves a great deal on heating costs. The homes are retail market conceptcategorised into efficiency classes in accordance We developed a special and uniquewith Directive 6 of the Austrian Institute for Con- retail concept for the Polish marketstruction Technology (OIB). back in 2005. To date, four centres have been built under the FERIO brandHUMAN-BASE©: Residential that adapts and another is currently under con-Accessibility is extremely important to us: due to struction. The goal of these shopping centres is tothe demographic shift taking place and the desire offer residents in the immediate vicinity everythingto live a self-determined life in one’s own home for they need for everyday living.as long as possible. Our concept aims at allowingthe living space to adapt with age and to be adapted The perfect location – always in an area with largewithout great effort or expense. The HUMAN-BASE© residential estates or in cities with a catchmentconcept was developed together with experts. area of several thousand inhabitants – and the fact that everyday purchases can also be made in FERIOThe long-term goal is to construct all residential shopping centres account for the success of theseprojects in accordance with all three living concepts. retail projects.The concepts have already been rolled out to themarkets of Eastern Europe (projects Olive Kramáre The design is not a copy of the large shopping malls– 2009 in Bratislava and Międzyborska 11 – 2012 in and shopping centres found in cities. FERIO marketsWarsaw). are based on a well thought-out design concept that is aligned to the needs of the local markets and econogy-offices: circumstances and adapted accordingly. We see the sustainable symbiosis of FERIO shopping centres as elements of the local ecology and economy communities and their success has proven us right.Ecological responsibility and economic reason donot have to contradict each other. On the contrary:Anyone who protects the environment, is thrifty withnatural resources and takes the living requirementsof future generations into consideration is actingwith economic responsibility.The term “econogy”, which was introduced into inter-national sustainability debates at the beginning of theWe. Raiffeisen evolution. 11

Employees. G4-10 Where, who and how much? G4-9Country 38 total Raiffeisen evolution employed 104 employees as atAustria 1 24 62 the end of 2014. Read more about our team in theBulgaria – 12 section “We & people” on pages 33 to 39.Czech Republic 1 11Hungary 4 56 In the past financial year, we generated €103 million.Poland 3 8 12 More about this in the section “We & society” onRomania 1 8 11 page 22.Russia – 67Serbia – 11 The investment volume for projects completed inSlovakia 48 22 2014 amounted to around €72 million. A total ofNumber of staff as at 31. 12. 2014 56 104 87,727 m2 (GFA | Gross floor area) was created. A further 120,231 m2 were under development.Our roots. G4-7 2014. G4-13The roots of our company can be found in theRaiffeisen Group and in STRABAG. This fact means The structure and ownership interests remain un-that a strong backbone of stakeholders and partners changed.was found and formed at the time of the company’sestablishment. The legal form of the business is Changes were made at two locations. Due to the“private limited company (GmbH)”. project sale of our last development in the Czech Republic (The Augustine Hotel), we closed the Prague office at the end of 2014 as no further project developments are planned there for the time being. The Graz office was merged with headquarters in Vienna as the final project at the location was also successfully completed (residential project on Metahofgasse/Rebengasse).We. Raiffeisen evolution. 12

G4-6 | G4-8 St. Petersburg Moscow Warsaw Prague Bratislava Budapest Vienna Graz Belgrade Bucharest SofiaAustria RomaniaRaiffeisen evolution project development GmbH RE project development S.R.L.Bulgaria RussiaRE project development d.o.o. OOO RE project developmentCzech Republic SerbiaRE project development spol s.r.o. RE project development d.o.o.Hungary SlovakiaRE project development Ingatlanfejlesztő Kft. RE project development s.r.o.PolandRE project development Sp.z o.o.We. Raiffeisen evolution. 13

We make a report. G4-18, G4-28, G4-29, G4-30This report – our second Sustainability Report – on what we are already doing, and highlight what wecovers the period from 1 January to 31 December would still like to do. The aspects were appropriately2014. We report in the option “Core” in accordance allocated to the needs.with the G4 guidelines of the Global ReportingInitiative (GRI). The sector disclosure for the You can find the result in the materiality matrix. Inproperty industry was taken into consideration. preparing the report, we paid special attention to theThe last report, our first one for CSR, appeared on aspects of the materiality matrix and supplemented16 September 2014 and its content covers 2013. them with data from the day-to-day running of the business.The first two reports (2013 and 2014) were preparedwithin the space of 12 months. From now on, we will We have tried to prepare all information and keywork to a report cycle of 24 months. figures on the individual aspects for the entire company. In some instances, we have deliberatelyCSR Task Force. G4-31 shown the key figures for headquarters in Vienna only as these are indicative for the company as a whole.For the purpose of preparing the content of this re-port, a workgroup (CSR task force) was created on We have described all material influences and inter-the topic of Corporate Social Responsibility, and rose actions of the aspects and have not undertaken anyto the topic and challenges together with an external delimitations or restrictions.consultant – CORSOR GmbH – in a highly intensiveprocess. Our managing directors, Gerald Beck and We deem all needs contained in our materialityMarkus Neurauter, were part of this workgroup and matrix to be important, even those outside our ownplayed an active part in it. The other members of the organisation. Where our organisation is also influ-CSR task force are: enced externally with regard to individual aspects, this influence is described.— M ark Pirker Risk Manager New formulations compared to the 2013 report arise from the stakeholder dialogue and the resulting— Beatrix Strohmaier materiality matrix as well as the further development Head of Human Resources of the reporting form.— B irgit Wagner The key figures presented in the 2014 report are External support | concept, text now much clearer than those in the 2013 report. We have professionalised ourselves internally, gainedYou can contact the CSR task force via the general competence and experience in the broad field ofemail address [email protected]. sustainability through the dialogues that were held on the basis of the 2013 report and implementedHere’s to a new report! G4-20 to G4-23, G4-33 the feedback received from many directions in this report.Our Sustainability Report is intended to be a docu-ment worth reading for all our reference groups – We have decided not to have this report checked byour stakeholders. an external auditor.We have surveyed the needs of stakeholders in the Because you matter to us. G4-24 to G4-26form of a dialogue (interviews and online question-naire) and will address the results accordingly. We For our first Sustainability Report, we defined ourshow what we understand amongst the needs, report stakeholders and divided them into four reference groups that reflect the four core areas of our report:We make a report. 14

People Society The feedback received was highly extensive and valuable input, which we were happy to use forManagement and Shareholders, partners, preparing the 2014 Sustainability Report.employees state, residents, media, interest groups The 33 needs that we defined within the scope ofMarket our 2013 Sustainability Report ultimately developed Environment into 174 different needs of all stakeholder groups.Customers and Within our internal CSR task force, we decided tocompetitors Environment, nature define five needs for each reference group that and resources were also defined by our stakeholders as being “the most important”. You can see the 25 needs inWe have evaluated our reference groups for this our sustainability matrix on page 16.report. No changes have been made. We haveconsciously avoided ranking our stakeholders as By choosing the expressed needs for a strongerevery single stakeholder is equally valuable to us. focus in the coming years, we see an opportunity to consistently continue what has already been startedOur stakeholder dialogue was managed by us online in these subject areas or to create new things as welland in face-to-face discussions. as to deliver concrete results within a set time frame.Because your opinion matters to us. Our sustainability strategy | Sustainably, of course.G4-19, G4-27 For us, sustainability is a question of values. The feed-The reference groups we wanted to make contact back we received helped us to identify the subjectwith, and how, was defined in advance: areas and to expand and strengthen our corporate and sustainability strategy accordingly. We want to— Customers: Online questionnaire act, do business and engage sustainably and in doing— Employees: One-on-one interviews based on so secure our company’s success for the long term. a structured questionnaire Engaging in various initiatives of the property indus-— Partners and suppliers: Online questionnaire try in Austria and abroad enables our employees to— Media: Online questionnaire identify trends and developments in the property industry early on. We are therefore in a position toBy holding one-on-one interviews with our em- decide which developments can be used for our busi-ployees, we achieved a feedback rate of almost ness model and whether they can be used to achieve100% in this reference group. The return rate advantages for customers, partners and ourselves.amongst our customers and suppliers was about30%. There was no feedback from journalists (media). If we decide to pursue a new development further, our experts incorporate the findings into our existing products or create a new one. In the RE_Academy, we have a means for training our employees promptly on the effects that new developments will have on our procedures, tender exercises and projects. For us, standing still is a step backwards; we can only maintain our leading position in the industry through constant improvement and further development.We make a report. 15

Concentrating on what matters.low important for our stakeholders | environmental relevance high — People Legend: — Society low The importance of the needs — Market for our stakeholder groups: — Environment important for the company | business relevance highWe make a report. 16

WIN-WIN-WIN — WIN for stakeholders: What win does the strategy | stakeholder have (e.g. employee, customer)? Everybody wins. — WIN for RE: What win is there for When elaborating the goals and us as a company? measures for the individual needs, it very quickly became — WIN for the environment: What win does clear to us that these should the environment have (e.g. environment,represent a win not only for the respective stake- community)?holder, but also the corresponding environment.And naturally for us as a company, too. Because What we stand for.implementing the measures should allow the creationand growth of synergy effects from which everyone When surveying our stakeholders, we also askedinvolved can benefit. them: “For me, Raiffeisen evolution stands for…?”For this reason, we pursue the WIN-WIN-WIN You can see the wide-ranging answers to thesestrategy for all needs: questions here:DeveloperSoundness Valuable StrongAppreciation Boring InternationalResidential Dynamism Reliability Competence Considered strong negotiation skillsQualitySustainability Trust Raiffeisen Development Proud Partnership EmployerTrends Innovation Serious StabilityWorking atmosphere Fairness Development Brand Correct Property company Future OfficesHonesty Guarantee Honesty Modern Professional Loyalty Qualified High-priced High-quality UncertaintyWe make a report. 17

WE & SOCIETY

Proactive for our society.As a company, we see ourselves as part of the The management structure with internationallysociety in which we are sustainably active and in functional responsibilities is extremely efficient andwhich, as such, we also want to demonstrate our enables rapid decision-making. The Board of Directorssocial responsibility. is in regular contact with the country managers. The Board of Directors acts and operates on an equalWe demonstrate this not only by creating sustainable footing. Flat hierarchies predominate.buildings that people feel good in, but also by beinga reliable partner. We strive for sustainable partner­ Proactive thinking and working are desired and en-ships with organisations and companies that are couraged.conscious of their own social responsibility. Deciding together |It is important for us to act sustainably for society Our highest controlling body.and the generations to come. We do this by relyingon stable growth, complying with mandatory G4-37 to G4-47, G4-49, G4-52regulations and adhering to self-imposed codesof conduct. We want to abide by the rules of play The Advisory Board is the highest controlling bodyand expect others to do the same. On the basis of of Raiffeisen evolution. It is responsible for theour investment, we strengthen the economy and in company’s strategic alignment and appoints thedoing so enable growth. Board of Directors. It convenes on a quarterly basis, when the two managing directors give a report onWe define the following stakeholder groups under the current status of the business and projectthe term “Society”: our shareholders, partners, the applications are submitted. This committee decidesstate, residents, media and interest groups. These on new projects and how existing project develop-are external reference groups, which we reach out ments will be continued.to as a company. Communication with the Advisory Board alsoClose to and with the people. takes place away from these sessions. The Board of Directors continually and regularly informsG4-34, G4-36 the Advisory Board about current economic and project-related developments (risks, opportunities,Gerald Beck and Markus Neurauter have been due diligence, etc.).managing Raiffeisen evolution since the companywas founded in July 2003 and have divided themanagement tasks between them accordingly. Theyact as the operating body that reports to the Ad­visory Board. The Board of Directors elaborates thecompany’s strategies in conjunction with MichaelaSteinacker, who acts as General Representative.The strategies are implemented by the Board ofDirectors following a resolution by the AdvisoryBoard, our highest controlling body.The organisational structure is based partly onthe distribution of competencies and partly onthe management of the operational departments.Control of individual divisions (e.g. IT, Finance, Law,Corporate Communication, Human Resources)is organised centrally at headquarters in Vienna.We & society 19

Our Advisory Board is made up of representatives of Michael Kafesieour four shareholders (Raiffeisen Zentralbank Öster- Raiffeisen Zentralbank Öster-reich AG, Raiffeisen-Holding Niederösterreich-Wien reich AG, Head of ParticipationAG, Uniqa AG and STRABAG AG). Michaela Steinacker Management & Controlling;is the chair of the Advisory Board. indirectly via R.B.T. Beteiligungs- gesellschaft m. b. H.Neither the members nor the chair of the Advisory Member of the Advisory BoardBoard have operational duties within the company. As since 1 October 2012representatives of the shareholders, they re­presenttheir economic interests. The stakeholder group of Wolfgang Pundyshareholders is fully represented on the Advisory Raiffeisen-Holding LowerBoard. Austria-Vienna, Project Manager; indirectly via Michaela Steinacker URUBU Holding GmbH Chair of the Advisory Board Member of the Advisory Board and General Representative of since 1 May 2013 Raiffeisen evolution since 1 July 2013 The members of the Advisory Board are proven experts and have a high level of expertise in allRepresentatives of our shareholders appointed to economic interests as well as in the area of thethe Advisory Board: property industry. The members of this committee do not receive any remuneration for exercising their Hannes Truntschnig activities on the Advisory Board. No instances of any STRABAG SE, Region Managing breach of confidentiality are known about or have Board International & Special been reported for the period under review. No Segments; indirectly via proceedings have had to be initiated with regard to STRABAG AG the avoidance/elimination of conflicts of interest. Deputy chair since 1 March 2003 Effects, risks and opportunities. Christian Teufl Raiffeisen Zentralbank Öster- G4-2 reich AG, Head of Participation Management & Controlling; In order to be able to operate successfully on indirectly via R.B.T. Beteiligungs- the market for the long term, our company has gesellschaft m. b. H. implemented a risk management system. The most Member of the Advisory Board important tasks are the early detection of possible since 1 March 2003 risks and the definition and implementation of measures aimed at reducing or avoiding detrimental Hannes Bogner effects on the asset, finance and income situation of UNIQA Versicherungen AG, our company. Chief Financial Officer; indirectly via UNIQA Beteiligungs-Holding Each successful entrepreneurial activity therefore GmbH requires an assessment of the opportunities and Member of the Advisory Board risks for all relevant factors of influence. since 1 March 2013 The company’s risk management activities have a uniform structure and are centrally controlled.We & society 20

The company has a host of control and monitoring In 2014, as in the years before, no fines or othersystems designed to fulfil the requirements of risk monetary penalties were paid in respect of themanagement: failure to comply with environmental laws and— R isk Attention: based on our corporate risk matrix regulations. No fines or penalties were paid in— Risk Assessment: in quantitative and qualitative respect of the failure to comply with laws and regulations in Austria or aboard. Furthermore, no respects separate financial support was provided by the— Risk Response: shifting, reducing, avoiding, respective public bodies either – e.g. subsidies, in- vestment allowances or tax relief outside of general accepting risks in consultation with the Group statutory regulations. Board of Directors and the supervisory body— Risk Control: checking implementation of the No instances of business locations and/or suppliers Risk Response refusing or possibly jeopardising the right of the em-— Information & Communication: measurement and ployees to the freedom of association or collective assessment of the development of risks through bargaining negotiations were known about for the regular risk reports to project leaders, Board of period under review. We did not, therefore, have to Directors and Advisory Board take any measures to protect the rights of possibly affected persons.Safeguarding human rights, complyingwith laws and compliance In the period under review, no business locations or suppliers were identified that presented a risk ofWe safeguard and respect human rights and adhere child, forced or compulsory labour. We did not, there-to laws and compliance. As a matter of course. We fore, have to take any measures to eliminate all formsalso expect our suppliers to adopt this attitude. of child, forced or compulsory labour.This often poses us a challenge in countries such asRussia. But it is a challenge we are happy to accept.— WIN for stakeholders | Partners & suppliers: In some markets, it is necessary to employee trusting basis for a collaboration and a reliable security staff on the construction site. This is done partnership primarily to avoid theft and prevent unauthorised persons from gaining access. General contractors— WIN for RE: image improvement and security are also familiarised with the topic of security as a— WIN for the environment | State: security part of awarding building contracts. In this respect, the security personnel ensures the protection ofCompliance with laws | human rights and the avoidance and sanctioningAs a matter of course. of human rights violations. We are not aware of any instances of human rights violations during theG4-57, G4-58, G4-EC4, G4-EN29, G4-SO8, G4-HR4 to G4-HR6 period under review.We pay very close attention to the following of laws, Goalcompliance and human rights. We also instruct and — to safeguard and comply with all statutory andverify our partners and suppliers in this regard. voluntary guidelines along the value creationIn the course of drafting our compliance directives, chainwe also designed a training course for our employees, Measurewhich is organised by our internal RE_Academy. This — through specific requirements and precisetraining course is a mandatory event for all employees. instructions to suppliers (Code of Conduct and reference to our compliance directives for tenderAt this point, we refer to our declaration of funda- exercises) as well as the ongoing verification ofmental values in the annex. complianceWe & society 21

Stable growth Profit isn’t everything, but without profit everything is nothing. G4-EC1for us means MORE sales, orders and projects. Like any economically managed company, we also— WIN for stakeholders | Partners: continuous strive for organic growth through continuously business relationship successful projects, through which we want to create more for our owners, more for our customers, more— WIN for RE: expansion of the market position for our employees and, not least, more for ourselves.— WIN for the environment | Society: contribution However, we have to confess that we missed this to increasing general prosperity and economic goal in 2014. Due to the difficult situation in Eastern performance through the multiplicator effect Europe, we were forced to carry out depreciations on a number of projects.Country 2013 2014Austria 100,354 76,866 GoalBulgaria — to achieve growth and development by increasingCroatia 419 42Cyprus 0 13 the equity baseHungary 726 MeasurePoland 988 6,955 — by creating the strategic preconditions andRomania 6,691 9,349Russia 1,070 37,782 operational excellence for economically success-Slovakia 70,580 -29,128 ful projectsUkraine -4,227 4,640Operating performance 2,657 -4,024 Creating and safeguarding jobsincluding other income (in €k) -1,646 New jobs can be created and existing ones safe- guarded through more products and more sales. 176,886 103,220 National Residential Commercial Recon­ciliation Total subsidiaries 135,0242013 Sales 925 63,511 71,108 -520 7,295 other income -4,549 763 10,637 444 34,567 Inventory changes 40,004 Operating performance 0 -5,438 0 176,886 including other income (in €k) 214,875 -3,624 58,836 121,750 -76 6,5542014 Sales 45,963 48,646 120,905 -639 -118,209 other income 681 1,233 4,641 0 Inventory changes 0 0 103,220 Operating performance 13,338 -131,547 including other income (in €k) 46,643 63,217 -6,001 -639We & society 22

— WIN for stakeholders | State: tax revenues, Regional and local commitment stimulating the economy for us means using local products and commission-— WIN for RE: satisfied employees ing local services.— WIN for the environment | Partners and — WIN for stakeholders | Partners & suppliers: suppliers: increase in sales long-term business relationship — WIN for RE: image promotion and better value creation by optimising costsNot always easy. G4-LA1 — WIN for the environment | Society:The past few years were very painful ones for us. local value creation, protection of the environ-Unfortunately, it was not possible to give all our ment (e.g. by avoiding unnecessary transports)employees the stable work environment we reallywanted to. We had to say goodbye to valuable Why gaze into the distance? G4-EC9, G4-SO1employees, to people we had implemented greatprojects with and all of whom we appreciated. For us, local or regional means procuring goods with- in national borders and thus strengthening the re-We had a small number of new appointments in the spective domestic economy. It is very important foryears 2012 to 2014. us to promote and commission companies that have their market presence in the country in question.In our fluctuation breakdown, we make a distinction When it comes to the production of printed matter,between “all leavings” and “leavings by employees”: it is especially important to collaborate with the print shops based in the relevant country. We produce ex-Fluctuation 2012 2013 2014 clusively on certified paper (e.g. Blauer Engel, PEFC).all leavings 33% 19% 20%leaving by employee We also specify that regional and seasonal products 7% 4% 1% must be used when catering for events. In this way, we try to act as sustainably as possible in the area ofGoal procurement.— to create a stable work environmentMeasure We also give a boost to young companies and— through the further development of existing start-ups, such as “Frische Fritzen” in Austria, a start-up from Lower Austria in the area of food. We products and concepts on the basis of customer now purchase fresh muesli from them on a weekly basis. Another example is Lucia Sittenthaler, a young needs and trends entrepreneur from Upper Austria who produces hand-made muesli bars. We also procure goods from her on occasion (incentives for our employees, e.g. on World Health Day, on company excursions). Goal — to support socially valuable projects and young companies Measure — b y awarding orders primarily to regional providers and by expanding the support given to young companiesWe & society 23

We work with others and get involved. — A ssociation of European Business — A merican Chamber of CommerceG4-15, G4-16 — R ussian-German Chamber of Commerce — SRO “Mezhdunarodny Alyans Stroitelei”Developing standards and directives further – notonly for us, but also in organisations and associations (International Union of Builders)– is important to us. We therefore engage proactively — E kologicheskii Sovet po Stroitelstvuto help the principles of sustainability attract interestin as many companies as possible in Austria and (Ecology Construction Board)abroad. — A ssociation for intelligent living — Salon RealMemberships: With regard to our industry, we are members of the following chambers in— Austrian Sustainable Building Council (ÖGNI) Austria:— r esPACT – Austrian Business Council for — Ö VI Austrian Property Industry Association Sustainable Development — W KO Vienna Economic Chambers— Raiffeisen Climate Protection Initiative (RKI)— K reditschutzverband 1870 We also provide support, including financial— A ssociation for supporting the Research Institute (donations), to humanitarian aid initiatives. In reporting year 2014, we supported the following for Central and Eastern European Business Law NGOs and projects in Austria: — Rote Nasen (Red Nose) International (FOWI of the Vienna University of Economics and • p articipation in the recycling programme of Business) Embatex AG (collection of empty toner— Joint Venture Association – Association of cartridges) — CONCORDIA social projects | Bulgaria Hungarian-foreign mixed companies • m aterial donation of softshell jackets— RICS – Royal Institute of Chartered Surveyors – — Haus der Barmherzigkeit (House of Mercy) • f inancial donation Head of the Project Management Group in — C hoir of the schools of the Dominican sisters | Concert for Maja Hungary • financial donation— H ungarian Green Building Association (HUGBC) — ImmoHumana – Association for mothers— B udapest International Business Center with residential difficulties • financial donation Association — S2Arch Association | construction of toilet— E AFA – Eurasian Friendship Association facilities for Ithuba children— I nternational Council of Shopping Centers (ICSC) • financial donation— I mmQu, association for promoting quality in — Christmas donation “Light into dark” • f inancial donation the property industry — Association for the blind and visually impaired— Polish Council of Shopping Centres (PRCH) Vienna, Lower Austria and Burgenland • financial donation Our employees have also made donations to a private clothing collection, with the clothes going to the aid organisation CONCORDIA social projects.We & society 24

Development of Walcherstraße residential projectLocation development The original commercial area has since been joined by residential projects that have made the area morefor us means not only constructing a building for mixed. We have made a significant contribution tousers, but ensuring that MORE is created for the the positive development of this area and alreadylocation. implemented several office and residential projects: — e zone office building— W IN for stakeholders | Residents: attractive — Park Lane Apartments residential project location, infrastructure improvement, increase in fair value (in cooperation with BAI) — Office and commercial building 2nd Central –— WIN for RE: image improvement, increase in fair value and satisfied tenants Office am Park (incl. supermarket and cake shop) — Walcherstraße residential project— WIN for the environment | Society: Growth at the location, leading to stimulation of the economy. However, Austria is not the only place where we Increase in social integration and satisfaction of create an enhancement for existing and future users. the building’s users You can read how we managed to do that in Romania in the section “We & applied sustainability”.A gain for everyone. G4-EC7, G4-SO2 There are no negative effects on local communitiesWe build in locations that already have a well-devel- to report for 2014 or for the preceding years. We areoped infrastructure or in locations that have been not aware of any complaints of this type at all.declared (urban) development areas. Our projectsallow us to create added value for the environment Goaland use to the available infrastructure. — to create liveable spaces MeasureFor example, we were the first project developer who — b y using intelligent urban concepts (creationbegan to develop the second row of buildings parallelto Lassallestraße in Vienna-Leopoldstadt. Today, the of infrastructure, promoting the developmentarea is one of the biggest urban development areas of urban areas) and social contributions for theand has an excellent infrastructure. development of urban locations by means of attractive projectsWe & society 25

WE & MARKET

Proactive for the market. It is not the employer who pays the wages.‘ Employers only handle the money. It is the customer who pays the wages. ’Henry FordIn order to be successful on the market for the long — W IN for stakeholders | Customers: sustainableterm, the golden rule for every company is to thrill property, greater comfortits customers. We also do exactly the same in thisrespect. We want the people who buy our dwellings to — W IN for RE: detectable competitive advantagefeel good in their new homes. We use our innovative — WIN for the environment:concepts to try to create the kind of added value thatthe competition is unable to offer them. Customer protecting resources through greater durabilitybenefit is also top priority in the office and retailsegment. Special requests? Certainly, if possible.We implement everything in accordance with the We also personally take care of any special requestshighest quality features. And should there be any our customers may have. Special requests (e.g.defects, we have defined precise procedures within changing wall or floor finishes, a shower instead of aour company to deal with such cases, and have bathtub, repositioning or omitting non load-bearingcommitted specialists to hand who carry these pro- walls, different radiators, etc.) are possible up until acedures out as efficiently and smoothly as possible. certain point of the building phase.At the end of the day, we want to have customers The requests are discussed in a personal discussionwho are happy because they feel they are getting with one of our employees and verified for whethermore for their money than they expected. In no way they are feasible or can be implemented. We obtaindo we rely solely on our feelings in this regard, but a quotation for our customers from the companiesactively ask our customers how satisfied they really that will be doing the work. The special requestsare and learn from their feedback. are then collated in a special request report and sent to our customers for approval and thereforeWe want to thrill our customers by being the best at commissioning. As you would expect, we also monitorwhat we do. At the same time, we want to soar above the execution of all special requests.our competitors in the spirit of fair competition. Finished – and now?Below, we would like to show you how we try to dojustice to our customers’ requirements. We also show you how we deal with faults. By having a clear and transparent culture for dealing withHigh quality errors, we are able to sustainably improve our future projects.In our Mission Statement, we commit ourselves towanting to develop high-quality properties. In order Unfortunately, construction projects always throwto ensure this, we not only place great value on the up issues. Realising that avoiding or remedyingmaterials used in our projects, but also place the them during the construction phase saves time andhighest of requirements on the architecture, fittings resources prior to the handover ultimately lets usand concepts. dramatically reduce the number of faults at the time of handover.We & market 27

When handing over, for example, apartments to The following table shows information in the areatheir new owners or the common areas to the house of commercial projects for Austria and CEE for themanagement, we go round with the owner or the years 2012 to 2014:house manager and add all remaining faults foundto snagging lists. The faults are then remedied by Snagging lists for commercial projectsthe company doing the work as quickly as possible.We are responsible for tracking the elimination of all Number of projects 6faults. Usable floor area in m2 120,010 Gross floor area in m2 267,928In essence, a distinction is made between visual flaws Total defects upon handover to(e.g. scratches in window panes or on parquet flooring), facility management 3,328functional flaws (e.g. non-functioning TV aerial socket) Average defects per 100 m2and hidden flaws (e.g. leaking pipes). Hidden problems gross floor area 1.24only appear over a period of use and are only addedto the snagging list after they arise or are found.We have set ourselves the goal of eliminating as many Special defects that arise in projects are placed onfaults as possible within a maximum of six months a snagging list which is made available to all ourfrom the date of handover. However, there are also employees so that any faults can be identifiedfaults that cannot be remedied right away (e.g. faults promptly and thus avoided. Training courses on thisthat depend on the time of year). topic are offered by our RE_Academy.Before the agreed warranty period of (normally) Goalsthree years expires, new faults that occur are added — to maintain the existing level of qualityand naturally remedied as quickly as possible. — t o reduce the faults in residential projects atFor five residential projects in Austria, which we handover to a maximum of 5 per 100 m2 ofcompleted between 2012 and 2014, we analysed the gross floor areasnagging lists with the following result: — t o reduce the faults in commercial projects at handover to a maximum of 1.1 per 100 m2 ofSnagging lists for residential projects gross floor area MeasureNumber of apartments 292 — by implementing a specific warranty and complaintLiving area in m2 24,890 management system and practising a transparentGross floor area in m2 44,335 error cultureTotal defects upon handover toowner or house management 2,700Average defects per apartment 9.25Average defects per 100 m2gross floor area 6.09We & market 28

Adhering to fair principles Stronger together.for us means having unfailing reliability and standing We act on various levels with our partners. It isby what was promised and agreed. very important for us to always deal with them in a fair and appreciative manner and so we nurture— W IN for stakeholders | Customers: our contacts accordingly. Over the years, we have reliable partner realised projects together with partners and entered into joint ventures. This is to the economic benefit of— W IN for RE: satisfied customers, build-up both sides. of client base By collaborating with other companies, we aim to— W IN for the environment: reliable partner for strengthen and expand our market position. We use service providers and suppliers events for networking and have even created two events – our Business Breakfast and our RE_EventReliability is valued. G4-SO7 Series – both of which are extremely popular.Our customers should be able to depend on us Goal100%. For us, that also means that we deal fairly — to strengthen and expand the market positionand honestly with our competitors, partners and Measuressuppliers. This involves complying not only with all — b y creating a concept for implementing a forumapplicable laws, but also with our own declarationof fundamental values as well as wanting to impress (event character)with what we do. — b y evaluating existing measures in this area (e.g.In the period under review, there were no proceed- RE_Business Breakfast and RE_Event Series)ings on the basis of anti-competitive behaviour or the — b y elaborating a definition of the key figures forformation of cartels and mono­polies. As a company,we distance ourselves from unfair competition and the relation management systemunlawful conduct. Good value for money G4-PR6Goal— t o continue to be a reliable partner For us, this means that the price of the propertyMeasure must fit the location, quality and product. We want— by adhering to the Code of Conduct our customers to always feel that the purchase “paid off”. (declaration of fundamental values) — W IN for stakeholders | Customers:Cooperation at industry policy level good quality at a fair priceFrom competitor to partner – we also want to — W IN for RE: increasing the image and loyalty ofimplement projects in collaboration with our regular customers, acquiring new customerscompetitors. through word-of-mouth referrals — WIN for the environment | Suppliers: we as a partner that others like to work with— WIN for stakeholders | Competitor: I get my best ideas increase in sales, know-how transfer ‘ when I imagine I’m— WIN for RE: increase in sales, know-how ’my own customer. Charles Lazarus transfer, less risk in implementing the project— WIN for the environment: more extensive offeringWe & market 29

We have done pioneering work with our residential DGNB with our shopping and entertainment centreconcepts and contributed to the further development Promenada mall in Bucharest (Romania). You canof freely financed residential projects. Since 2003, find detailed information on the project in thethis has enabled us to complete 45 residential projects section “We & applied sustainability”. The audits forin Austria and abroad and thus achieve added value. the final certification are, of course, performed by independent auditors who have absolutely noWe are not just about four walls with windows; people employment relationship with us.who buy homes from us get optimal layouts and ad-ditional features that can simplify life, whether these Raiffeisen evolution did not sell any prohibited orbe, for example, the in-house wellness and fitness disputed products in 2014 or in previous years.area (Wellness-Base), the event room (Event-Base)or the delivery areas (Shop-Base). Goals — t o increase the number of regular customersOur residential projects are also noted for their low — t o implement the residential concepts in Austriaenergy consumption and therefore lower running Measurescosts. All of this produces a lasting sense of — by evaluating and monitoring existing regularsatis­faction amongst our customers and deliversgood value for money. It is no accident that there customers and developing customer loyaltyare already many regular customers amongst the measuresbuyers of our homes. — b y taking into consideration at least two residential concepts in all future projectsYou can find more information on our concepts in High customer satisfactionthe section “We & applied sustainability”. As mentioned at the beginning, we want to thrill ourWe also generate added value for our customers customers with our products. For us, that means thatin the office and retail segment through the ÖGNI our customers feel good in their new homes and alsocertification. We have been a member of the Austrian recommend us to others.Sustainable Building Council (ÖGNI ) since it was firstset up and we engage proactively in its work. — WIN for stakeholders | Customers: basis for happiness and well-beingIt all began when we had employees trained asÖGNI auditors so that we have the full certification — W IN for RE: we can be sure that we are doing itknow-how in house and can apply and use it in the right. Acquiring new customersdevelopment of new projects. — WIN for the environment: image improvementAll our commercial properties – in Austria and for suppliersEastern/Southeastern Europe – are certified on thebasis of the guidelines of ÖGNI, which in turn are The voice of the customer. G4-PR5based on those of the German Sustainable BuildingCouncil (DGNB – Deutsche Gesellschaft für nach­ In the area of residential, we conduct two surveys:haltiges Bauen). Our projects are pre-certified in the first one immediately upon handing over thethe project development phase and, depending on dwelling and the second about one year after thethe outcome, suitably upgraded to achieve the best occupants move in.certification result for the project. The questionnaires are designed to give us feedbackFor example, we attained the highest Gold evaluation on satisfaction with the dwelling and with us as a(Commercial Type 2 category) in the history of ÖGNI/ company – as well as with other companies involved – from the perspective of our customers.We & market 30

The results of each questionnaire are discussed in the Nearly all questionnaires mention the good layoutteam. The suggestions and improvement possibilities and the professional support provided by Raiffeisenderived from this flow into future project develop- evolution in especially positive terms.ments. Complaints and/or faults reported by usersare immediately processed and can lead to changes Negative feedback that does not concern us directlyin our procedures and regulations. is forwarded and monitored by us accordingly. We evaluate each piece of feedback that concerns usWhat could be nicer than directly, e.g. too few power sockets in the bedroom,satisfied customers? and then adapt the construction and fitting specifi- cation for future projects.Two surveys were conducted in the period underreview: one for the Walcherstraße residential Goalproject (62 questionnaires) and one for the Plössl- — to increase customer satisfactiongasse project (48 questionnaires). Both objects Measureare located in Vienna. The first questionnaire — b y specifically surveying our customers and(questionnaire at time of dwelling handover) washanded out both times. A total of 110 homebuyers conducting a measurement of customerwere surveyed in 2014. satisfaction and implementing the associated results accordinglyWe & market 31

WE & PEOPLE

Proactive with and for people.We respect, protect and promote We live by these values. They characterise who wethe interests of our employees. are. They are considered and laid down in both mission statements.As an employer, we are responsible for ouremployees. For ensuring they are doing well and The needs of our employees are very important toare able to develop. We are happy to meet this us. We would like to show you what we contributeresponsibility. to this:Developing the future. G4-56 CompetenceFor us, our corporate motto “Developing the future” Working in a team requires social and professionalalso stands for the development of our employees competence. For us, competence means knowledge,and therefore for the development of our company. skills and abilities, attitudes and values.In exactly the same way that we develop ourproducts and projects, we would also like to provide — WIN for stakeholders | Employees: to be able toour employees with an environment in which they rise to the demanding and diverse challenges ofcan develop themselves further. Professionally and today and tomorrowpersonally. — WIN for RE: with competence, we reach ourIn the year after our company was established, we goals more easily, coexistence becomes easiercreated a corporate mission statement and shortlythereafter a management mission statement. Both — WIN for the environment: contributes toprovide a sense of direction and highlight the values valuable results for society; it is easier to speakand principles for which Raiffeisen evolution stands. with competent contact partnersBoth mission statements still reflect the way we thinkand act today. Offering possibilities. G4-LA9, G4-LA10, G4-LA11We added the term “Sustainability” to our corporate We never stop learning and our competencies alsoculture back in 2003. We have committed ourselves develop and change as we grow older. The moreto living and strengthening our corporate and competencies a person has and the more distinctmanagement mission statements on a daily basis. they are, the easier it becomes to deal with changes and challenges. The tasks that face us are alsoOur mission statements include the following values: approached with greater certainty.fEoqoutainl g Passion Trust Appreciation Fairness HonestyWe & people 33

Competence contributes to the success of a person Training courses*and of a company. 2012 2013 2014For us, it is important for people to work on theircompetencies, to develop new ones and to con­ 4,915tinuously expand them.At the RE_Academy – which was established in 2008 Total training hours 2,489 2,364as an internal training platform and is based on thefour competence pillars of Project Management, 57 56 55Professional Competence, Management Competence 43 44 45and Communication & Language – we also offer ouremployees training courses for the development ofpersonal competencies.In 2014, for example, we offered our executivesa two-day course on the topic of “non-violentcommunication” based on Marshall Rosenberg.Participation in the training courses and initiatives Division of hours by genderis mostly on a voluntary basis (except for mandatory (in %)training such as the Compliance course). As we see 65it, the measure will be a win for everyone only whenpeople see a purpose in what they do. 40 33 24 17 23During our employee appraisals, which are held atleast once a year between executive and employee,we assess the employee’s performance and alsodefine the individual training measures. Training and development per participant (average values in hours) 49 43 31 15 24 24 Training and development per executive (average values in hours) * Remarks on the figures: In 2012, we were also able to hold or complete our training programme for the competence pillars of Management Competence (courses ranging from Communication to Conflict Management and Negotiation Skills) at some of our offices abroad. Due to the HR measures that we had to introduce at the end of 2012, we deliberately reduced our training programme in 2013.We & people 34

Goals T he view of the world was— t o increase internal competence— t o improve occupational safety ‘ (and is) much more differentMeasures because of it.— by offering new courses organised by the ’Participant of the RE_Academy RE_Academy based on the needs of ouremployees— b y training all employees in the area ofoccupational safety and preparing a mini-guide Goalcontaining important information and tips — to promote individual development opportunities MeasureDevelopment opportunities — by allowing working time for voluntary charitable activities and encouraging employees to take onFor us, offering development opportunities is not voluntary roles and get socially involvedonly about offering career paths, but much moreabout giving our employees the opportunity to learn Know-how transferdifferent things and gain new perspectives. For us, know-how transfer means the passing of— W IN for stakeholders | Employees: change of knowledge to others. Learning from one another in behaviour. People grow and come to know their direct personal exchange. Making the knowledge of limits the entire organisation visible and available.— WIN for RE: strengthening our employees fornew challenges — W IN for stakeholders | Employees: making— W IN for the environment: perspectives change personal knowledge visible. Strengtheningand people see some things more clearly self-awareness. Opportunity to slip into a new role — WIN for RE: preserving knowledge. CorporateOut of the comfort zone! success is sustainably secured by this — WIN for the environment: authentic andOur employees should work on themselves and practice-orientated training coursesexpand their own comfort zone. The comfort zoneis what we move in, feel good in and are well-versedin. However, growth and new challenges require Imparting knowledge.us to leave our comfortable behaviours and openourselves up to new situations and feelings. Do that The know-how already available within the companyfor long enough and at some point the unusual, is specifically passed to others within the scope ofnew situation becomes a comfort zone in which our RE_Academy competence pillar “Professionalyou feel good. The comfort zone has therefore been competence”. We have managed to obtain the best andexpanded. most experienced trainers for this: our employees and executives.We offered our employees a course “in the dark” atthe RE_Academy. This involved working as a team In recent years, we have created a platform calledto solve various task in the dark. Impressive ex­ RE_public, where all our knowledge is storedperiences were gained from this. The feedback from electronically and which all employees have access to.the 12 participants on this training course was verygood, which is why we will also be offering it to our Goalemployees in the future. — to promote knowledge managementWe & people 35

Measure— by making a forum available for the personal passing on of knowledge (focal topics, e.g. sustain- ability, lessons learned from completed projects)Equal opportunityFor us, equal opportunity means that every singleperson is treated fairly and equally regardless ofgender, age, race, nationality, disability, sexuality,membership of a trade union, family status, religionor political persuasion. It also means diversity “inpeople’s minds”. For us, diversity is a strength. Ouremployees’ difference lead to different perspectives,ideas and skills.— WIN for stakeholders | Employees: employability and motivation are promoted— W IN for RE: we are perceived as being an attractive and responsible employer— WIN for the environment: people also learn to see things differentlyWe are who we are. G4-11, G4-LA2, G4-LA13 Goal — t o maintain the balanced ratioSalary bands are defined for each position and Measureemployees are allocated to them based on their — through ongoing monitoringprofessional experience, regardless of gender ororigin. Good working atmosphereSupra-company collective agreements are For us, a good working atmosphere means beingapplicable to employees in Austria and in some able to feel good. A combination of enjoying the job,Eastern European countries. The salaries paid – personal satisfaction and appreciative co-existence.especially in the CEE countries – are above thosestipulated by minimum wage regulations. — WIN for stakeholders | Employees: they feel good and enjoy going to work.All operational benefits that we as a company grantour employees are available to all employees – — W IN for RE: motivated employees, low staffwhether part-time or with temporary employment fluctuation and high productivitycontracts – during their period of appointment. — WIN for the environment: a good workingWomen account for 54% of the company’s workforce. atmosphere leads to better healthDespite the very heavily male-dominated industryin which we operate, we create a balanced genderratio.We & people 36

Employees by region, gender, age 2012 2013 2014group and employment contract G4-LA12Country | Employee category Age group total total totalAustria 48 25 73 40 23 63 38 24 62Board of Directors 30–50 years 2– 22 – 22 – 2 over 50 years –– –– 1 1– 1 1Executives 30–50 years 12 3 15 8 3 11 8 3 11 over 50 years 4– 46 – 65 – 5Employees below 30 years 2 3 51 3 41 2 3 30–50 years 22 17 39 18 13 31 15 15 30 over 50 years 6 2 3 87 3 10 85Bulgaria 21 31 1 21 1 2Employees below 30 years 1 1 2– 1 1– 1 1 30–50 years 1 – 11 – 11 – 1Czech Republic –1 1– 1 1– 1 1Employees over 50 years – 1 1– 1 1– 1 1Hungary 24 61 4 51 5 6Executives 30–50 years –1 1– 1 1– 1 1Employees below 30 years – – –– 1 1– 1 1 30–50 years 2 3 51 2 31 3 4Poland 3 11 14 4 8 12 4 8 12Employees below 30 years – 1 11 – 11 – 1 30–50 years 3 10 13 3 8 11 3 8 11Romania 6 12 18 4 15 19 3 8 11Executives 30–50 years –1 1– 1 1– 1 1Employees below 30 years 2 4 62 2 4– – – 30–50 years 4 7 11 2 12 14 3 7 10Russia 16 71 6 71 6 7Employees below 30 years 1 2 31 2 31 2 3 30–50 years – 4 4– 4 4– 4 4Serbia –1 1– 1 1– 1 1Employees 30–50 years –1 1– – –– – – over 50 years –– –– 1 1– 1 1Slovakia –2 2– 2 2– 2 2Employees 30–50 years –2 2– 2 2– 2 2Ukraine –2 2– – –– – –Employees below 30 years – 1 1– – –– – – 30–50 years – 1 1– – –– – –Total comprehensive income 62 65 127 51 61 112 48 56 104We & people 37

People who feel good can also enjoythe moment.Openness, honesty and appreciative communicationshould not be mere buzzwords, but also practised.And laughing is allowed!We strengthen team spirit and the we-feelingthrough regular incentives (World Health Day, Dayof the Apple, etc.) and events (company outing,Christmas party, etc.).The Vienna team visited the National Park Centrein Orth an der Donau in September 2014, with ahike and a tour on board the Tschaike. A naturalexperience. The team travelled along the Danube onboard a historic boat called Tschaike. The trip endedwith lunch together.Our teams abroad also regularly pursue activitiestogether. Because the health of our employees matters to us. G4-LA6 Our employees’ health is very important to us. We have therefore concluded agreements with medical centres in countries where the health system is not as developed as it is in Austria so that our employees there can also receive the best medical care possible. Our company-wide survey of absenteeism due to illness shows quite clearly that our employees take fewer sick days than the average for the other countries. Happily, there are no work-related injuries or resulting absences to report. average sick days 2012 2013 2014 per employee 4.56 4.47 4.18 average 4.47 5.39 4.28 sick days 4.92 3.45 4.07 average sick daysWe & people 38

Because the opinion of our employees Goalsmatters to us. — to evaluate and strengthen the workingIn 2014, we conducted an evaluation of mental stress atmospherein Vienna. Thanks to the very high return rate, we — t o promote the health of our employeeswere able to arrive at conclusive and meaningful Measuresresults. — by conducting an employee survey includingTopics that were not rated so well, such as safety, evaluation of existing measures (companyoccupational safety training, physical activity, outings, events, etc.)time and deadline pressure, are evaluated and — b y sending out a monthly newsletter withcorresponding measures derived. gymnastics exercises for the office — by retaining our weekly fruit basket and themedBelow are a few results that particularly stuck out: incentives such as World Health Day  Topic | specific statement SatisfactionWorkplace | freedom of movement,accessibility, sufficient storage 90.7%areas ... 82.4%Colleagues | trust, willingness to 78.4%help, praise … 36.4%Superiors | trust, praise, objective 23.3%criticism ... 11.9%Posture | physical activityWork organisation | time anddeadline pressureSecurity | occupational safetyinstructionsWe & people 39

WE & ENVIRONMENT 40

Proactive for our environment.Climate change, global warming, natural disasters. Paying attention. G4-14These terms have been part of our lives for manyyears. The use of raw materials has doubled around the world in the past 30 years. If we continue like this,By using our chosen construction method – Near we will theoretically consume three times whatzero / Low energy houses – and the self-commitment the Earth can offer us in natural resources by theto erect only sustainable properties, we try to make middle of the century.a contribution and to protect the environment andnature. We know that we cannot do anything to change this as a company on our own. But we can help toWe protect resources not only when constructing use our environment more carefully. Using nature’sbuildings, but also when preparing construction resources in a protective and sustainable way issites. Consequently, all companies and persons therefore particularly close to our heart.involved in the value creation chain are required toact accordingly and recycle building materials and We ensure that we view our projects from a holisticuse raw materials or goods that are sustainable and life-cycle perspective: from buying the land tocertified. constructing and using the building through to demolition.By continuously developing our residential concepts You will find the measures we take in this regard inand office concept further, we try to counteract the section “We & applied sustainability” | Ecologicalthe changes wherever possible and to act in an quality | 2nd Central on page 49.environmentally friendly manner as literally aspossible. Goal — t o consider the operating and life-cycle costs atRead on to find out how we deal with the needs ofour environment – for a more sustainable world the project development stagethat we are shaping for the next generation- not Measureonly regarding out products, but also in respect — by sensitising our stakeholders and creatingof procedures within the company (e.g. wastemanagement): best-practice examples (e.g. office building 2nd Central or Promenada shopping and entertain- ment centre in Bucharest)Handling natural resources with care Sustainable buildingOptimised product cycle and use of our concepts Considering the life-cycle of the property, building in(econogy-office and ECO-BASE©) and exclusive use a way that protects resources, taking MORE extrasof timber materials from sustainable sources (consider family friendliness, residential concepts) into consideration, MORE comfort.— W IN for stakeholders | Environment: proactive response to local and global — WIN for stakeholders | Investor: property that environmental problems retains its value and can be used for the long term— W IN for RE: image improvement and — WIN for RE: further development of our competitive advantage products for a competitive advantage— WIN for the environment | Customers: — WIN for the environment | Tenants, purchasers: image improvement high quality, high satisfactionWe & environment 41

‘ ’T he best way to predict the future is to create it. Peter F. DruckerWhen developing our projects, we not only pay between 25 and 40 kWh/m2a. On some projects, how-attention to our current needs, but also take the ever, we have already managed to achieve a heatingneeds of future generations into consideration. Above requirement of less than 25 kWh/m²a and in doing soall, our residential concepts offer MORE extras and implemented Near Zero Energy houses.comfort. Not only for today, but also for tomorrow. Energy efficiency HWB-REFIN ConstructionYou can find out how we do this in our projects class kWh/m2a standardin the section “We & applied sustainability” |Sustainable residential based on the Walcherstraße A++ ≤ 10 Passive houseproject on page 54. A+ A ≤ 15 Nearly zero energyGoals B building— to think about conversion/subsequent use C D ≤ 25 Nearly zero energy concepts E building— t o ensure long usability FMeasures G ≤ 50 Low-energy building— b y sensitising employees on the training courses ≤ 100 Technical building that are offered by the RE_Academy regulations 2008— by implementing the existing concepts of ≤ 150 Unrefurbished HUMAN-BASE© (residential projects) and econogy- ≤ 200 residential building, office (office projects) in as many projects as built in 1960–80 possible Unrefurbished residential building,Low-energy construction built in 1960–80Implementation of energy concepts aimed at ≤ 250 Unrefurbishedoptimising the total energy requirement of all our old stockprojects > 250 Unrefurbished old stock— WIN for stakeholders | Tenants: energy costs Since the company was founded in July 2003, our fall ECO-BASE© concept (more on this in the section “We & applied sustainability”) has been implemented— WIN for RE: lower energy costs as an in the following projects: argument for letting or selling — Jungstraße (passive house), Vienna-Leopoldstadt — Engerthstraße, Vienna-Leopoldstadt— W IN for the environment | Environment: — Ahornergasse, Vienna-Neubau CO2 emissions are reduced by energy-saving — Plösslgasse, Vienna-Wieden measures — Gatteredergasse, Vienna-Liesing — Scheibenberggasse, Vienna-WähringSaving energy, protecting the — Walcherstraße, Vienna-Leopoldstadtenvironment. G4-EN10 — Trondheimgasse, Vienna-Donaustadt — Metahof-/Regengasse, Graz-AnnenviertelIn 2012, we determined that we would only buildlow-energy houses with a heating requirement ofWe & environment 42

Goal We must become aware of this potential and— t o implement projects up to and including the formulate appropriate measures. It is not just about recycling waste, but also about making sure “Plus Energy” construction method at times that the manufactured products are as recyclable as are meaningful for the business possible.Measure— b y researching, developing and certifying Goal energy-efficient buildings — t o optimise waste management including useWaste management of waste avoidance MeasuresConscious handling of waste materials from the — b y creating a properly thought-out waste conceptdevelopment phase through construction activityto the operation of our projects and in our offices for the office and the projects (use of recyclableand everyday lives. Consideration of waste manage- materials/commodities)ment concepts for all our projects and their transfer — b y using Re-Use (re-use of the waste) andto our property service providers such as facility Urban-Mining (using waste as a commodity)management. Energy-efficient working & living— W IN for stakeholders | Facility management: provided with sufficient space and equipment Creating awareness of measures that contribute to ensure optimal waste management to energy saving.— WIN for RE: better negotiation basis with — WIN for stakeholders | Environment: service providers (disposal companies), fewer less waste, fewer emissions surprises in ongoing operations — WIN for RE: cost savings— WIN for the environment | Environment: — W IN for the environment | People: protecting the environment by avoiding waste energy-saving tips for the home, sensitisation.We sort. G4-EN23 Creating awareness.Optimised waste management is part of our In order to create awareness, we need clarity abouteveryday operations – both on our projects and in where we are currently at. This clarity shows that weour offices. have the potential to make things better.Waste management is important for environmental We want to create awareness of how energy-protection. How good we are at protecting the efficient working and living can function. We wantenvironment depends decisively on our employees. to strengthen the environmental awareness of ourWe can make a continuous improvement by taking employees and thus improve our environmentalmany small measures. We base our projects on the balance.guidelines of ÖGNI for low-waste construction sites. At our office in Vienna, we have a total of threeIn our offices, we separate residual waste, paper, printer stations which our employees can use forplastic, toner cartridges, etc. We also pay attention printing and making copies. Each station has ato this in our projects. However, we certainly have the black/white printer and an energy-saving multi-potential to do more in this area. function device (print – scan – copy).We & environment 43

Paper consumption of copier and printer paper |Location ViennaPaper A4 | Sheet 2012 2013 2014Paper A3 | Sheet 500,000 455,500 382,500Average employees 22,500 20,000 10,000 76.42 61.66 58.50Paper consumption of toilet paper & hand towels | Working on this report made us truly aware of risingLocation Vienna energy consumption. We are working on measures to achieve our goal of at least a 3% reduction. 2012 2013 2014 Movement needs energy. G4-EN15, G4-EN30Paper hand towels 320 240 210 Each of us knows from practising sports or doingin packs of 180 sheets 912 576 524 physical work that movement needs energy. Even 76.42 61.66 58.50 more energy is consumed when travelling, due to theToilet paper sometimes large distances, high speeds and weight of the means of transport.in rolls of 400 sheetsAverage employeesCleaner energy. G4-EN3, G4-EN10 Due to the distances of our projects – especially in Central and Southeastern Europe – we cannotFor our headquarters in Vienna, we procure electricity always avoid business trips, but we do try to cut down on them by using new technologies such asthat is generated entirely from renewable energy video conferencing.sources. The amount of electricity is predominantlycovered by European hydropower.We have been issued with corresponding certificates Flights 2012 2013 2014by the Energie Allianz Österreich (Energy Alliance CO2 emissions in t 264.17 322.35 164.75Austria) (proof of origin in accordance with Sec. 8and 9 of the Austrian Green Electricity Act). Remarks on the figures: There was an increase in the number of flights in 2013 due to the completion of the Promenada mall-project in Romania and Międzyborska 11 in Warsaw.By procuring electricity from renewable energies Our fleet (Austria) comprised a total of 26 companyand hydropower, we are making a contribution to cars in the reporting year. Of these, 25 run on dieselprotecting the climate. The supply does not cause and one on petrol (Super Plus – RON 98).any CO2 emissions. When choosing company vehicles, we pay attentionEnergy figures | Location Vienna to fuel-saving cars with low CO2 emissions and to the guidelines issued by our shareholders.Usage in kWh 2012 2013 2014 80,570 100,297 102,709 Within the Raiffeisen Group, Raiffeisen LeasingCO2 savings in t – carries out an annual evaluation of the CO2 emission 15.19 18.84 17.66 in grams per kilometre driven in an anonymised fleetdue to the use of assessment.electricity fromrenewable energyWe & environment 44

Company cars (all motor vehicles registered in Austria) 2012 2013 2014 Changes 2014Kilometres driven 792,694 768,019 750,169 to 2013Average fuel consumption in litres/100 km -2.4%CO2 emissions in kg 6.97 7.17 7.02 -2.14%CO2 emissions in g/km 149,702 145,644 140,126 -3.94% 188.85 186.79 -1.52% 189.63Goals Measures— to reduce electricity and paper consumption by — by sensitising employees with energy saving at least 3% tips, tips on mobility and preparing a guideline— to reduce CO2 emissions by at least 5% for environmentally conscious behaviour — by reducing business trips (use of new technologies) and providing guidelines for the procurement of company vehicles (eco models, particularly low-emission vehicles)We & environment 45

WE & APPLIEDSUSTAINABILITY

Proactive for sustainability. CRE1–CRE5Since our company was established in July 2003, we Facts about ÖGNIhave completed many property projects in Austria — f ounded: 2009and abroad. It was and still is important for us to — members: 300 (as at December 2013)act and build in a way that protects resources. — founding president: Philipp KaufmannSustainably, of course. PICTURES OF CERTIFICATE PRESENTATION 2nd Cen-We established this for ourselves even before the tral & Promenadacreation of associations and initiatives such as theAustrian Sustainable Building Council (ÖsterreichischeGesellschaft für nachhaltige Immobilienwirtschaft –ÖGNI) or the German Sustainable Building Council(Deutsche Gesellschaft für nachhaltiges Bauen –DGNB). From the very beginning, the term sustain­ability has been anchored in our corporate cultureand a central element of everything we do.In this section, we show you how we apply sus­tainability and how we implement it in our projects –taking specific examples for the areas of office, retailand residential.Before you dive into the world of our projects, wegive you an overview of ÖGNI as well as the DGNBevaluation system, with which we have all ourcommercial projects in Austria and abroad certified.We and ÖGNI. Philipp Kaufmann awards the ÖGNI certificates for the projects Promenada in Bucharest and 2nd Central – Office im Park in ViennaThe Austrian Sustainable Building Council, ÖGNIfor short, “is an NGO and develops content such The DGNB system.as guidelines or codes, certifies companies in theirethical actions and awards flagship projects of sus- ÖGNI certification operates in accordance with thetainable building and administration. In addition, DGNB system. In broad terms, the DGNB/ÖGNIsustainable knowledge is imparted in the form of applies a uniform and transparent assessmenttraining courses. The Council creates framework system to measure the future-viability and sustain­conditions for establishing the concept of sustain- ability of buildings that are under construction orability at all stakeholders of the construction and already completed and to rate them using a scoringproperty industry in Austria” (ogni.at). system. Various profiles are available for this, depending on the type of building. The degree toWe ourselves are a founding member of ÖGNI and a which the individual criteria are met results innumber of employees have been trained as auditors awards in Bronze (over 50%), Silver (over 65%) andby ÖGNI. Our auditors bring the knowledge they have Gold (over 80%).acquired to bear early on in the project developmentphase. They also register a project for certificationand submit the necessary documentation. RE em-ployees are also represented on the ÖGNI ManagingBoard and on the technical committee.We & applied sustainability 47

The aspects assessed are arranged into the target value, the more points can be achieved in thefollowing main criteria: individual criteria. Economic Socialcultural The overall project is considered in the certification Quality and Functional process. This means that individual criteria are dependent upon one another, just like a livingEnvironmental Quality organism. At the same time, this does not provide Quality a “snapshot” – the presentation of a status at the moment of construction – but instead considers Process Technical the life-cycle of a project. The evaluation of quality Quality Quality therefore takes place over the period of use of an overall project. SiteQuality The DGNB system helps our project directors not only to assure quality, but also to reveal new aspects,— E nvironmental Quality: effects on the global and which could lead to even more sustainability in the local environment, resource utilisation and the course of implementation. The overall view of the amount of waste produced building is the basis for efficient, sustainable con- struction. The transfer of problems is prevented by— E conomic Quality: life-cycle costs, process chain the life-cycle perspectives. and value development In order to also ensure that these requirements— S ociocultural and Functional Quality: are met, all companies instructed by us during the user convenience, functional and design-related construction of a building are given a so-called building characteristics scope of work on Sustainability (planner – specified for architect, building physicist, structural engineer,— T echnical Quality: fire and noise protection, technical building equipment) or a specification building envelope, ease of cleaning and main­ on Sustainability (implementing companies), tenance, demolition and recycling friendliness which is provided in the form of an annex to the contract. This also requires the companies and— Process Quality: quality of planning and subcontractors instructed by us to comply with construction all system specifications such as those regarding the use of wood, building materials and resources.— Site Quality: conditions in the micro and That is how we live. macro location are highlighted Office.Each main criterion contains groups of criteriawhich in turn can be divided into individual criteria We would like to present one of the main criteria toor profiles (SB). For example, the main criterion you on the basis of the 2nd Central office project.“environm­ ental quality” has the criteria group“effects on the global and local environment” with Environmental Economic Technicalthe associated SB-1 “greenhouse gas potential”. Quality Quality QualityGenerally speaking, each of the individual profiles We will present the other three main criteria to youdefines limit, reference and target values, with the with reference to the Promenada mall-project.reference value representing the “norm”. The closerthe figures of the respective building come to theWe & applied sustainability 48

area. The individual layouts and fittings were deter- mined with the tenants on the basis of their needs and requirements. The planning of the project also took the wishes of the future users into consideration. Bicycle storage rooms, showers and smoker zones were therefore created on the ground floor.2nd Central – Office am Park | Fact box March 2012from Silver to Gold. Start of construction September 2013 End of constructionThe project 2nd Central – Office am Park is an office Gross floor area 19,020 m2building in Vienna Leopoldstadt in the development Rental area 15,083 m2area of the former North Railway Station (Nordbahn- Garage spaces onhof). In the pre-certification by ÖGNI in accordance lower ground floor 141with DGNB, this construction project achieved Silver.After completion, the project was tested again and Environmental quality.we achieved a Gold certificate due to the adjust-ments made. A few months after completion, we Profiles 01-05 deal with the effects on the environmentsuccessfully sold the property to an Austrian fund. that arise in the form of emissions and set the goal of reducing them in each criterion. For this purpose,Spread over eight floors, a modern office environ- an “life-cycle” containing the building’s key ratios isment was created in accordance with low-energy prepared, which also includes profiles 10 and 11.standard A for cost-conscious companies. Weacquired a supermarket and a café-cake shop as The eco assessment balance therefore determinestenants on the ground floor. the total emissions of all products used in the building in connection with the manufacture, operation andThe flexible space concept took the wishes of future disposal of the materials in question.users into consideration at an early stage. Con-sequently, offices can be rented from just 300 m2 in The following overview shows the individual criteria and values in detail:Profile SB01 SB02 SB03 SB04 SB05 GlobalUnit Warming PhotochemicalResults from the potential Ozone Ozone Creation Acidification Eutrophication2nd Central eco-balance kg CNOG2F/am*a² potential potential potential potentialReference value accordingto ÖGNI criteria kg CFC11/m² kg CN2HG4F/am*a² kg SNOG2F/am*a² kg PNOG4F/am*a²Saving at 2nd Central NGFa*acompared to theÖGNI reference value 28.86 3.23E–07 0.00462 0.04846 0.00505 52.24 6.55E–07 0.00980 0.12500 0.01090 approx. 45% approx. 50% approx. 50% approx. 60% approx. 55%We & applied sustainability 49

We are perfectly aware that we are putting a strain Attention is paid when selecting materials to avoidon the environment by developing projects, but we using any and all materials that are potentially toxic,try to keep this strain to a minimum. In this case by contain solvents, are harmful to health and causeas much as 60% compared to a reference project. cancer or are heavy metals.Profiles 10 and 11 concern the non-renewable and Materials, that are toxic to the environment (e.g.the total primary energy demand. to water, bees, plants) are not used as a matter of principle.Profile SB10 SB11 Non­ Economic quality.Unit renewable TotalResults from the Primary Primary A very important criterion of a building’s economic2nd Central Energy Energy quality are the life-cycle costs and thus profile SB16.eco-balance Demand Demand For this reason, we had a life-cycle cost calculationReference value kWh/m2 kWh/m2 prepared for the 2nd Central project over a periodaccording to ÖGNI NGFa*a NGFa*a of use of 50 years, which is intended to capture thecriteria financial effects of the project from start of con-Saving at 2nd Central 79 123.7 struction through to demolition. The following costcompared to the types were considered:ÖGNI reference value 207 281 — manufacturing costs — utilisation costs approx. 60% approx. 55% • Operating costs — supply and disposal of → energy/electricity andHere as well, we are well below the reference valuesand contribute to the protection of resources, water, disposal of waste waterboth in the construction phase and later on in the — cleaning and careoperating phase. — o peration, inspection and maintenance • Maintenance costs — m aintenance of the building’s structure — maintenance of TBF (technical building fittings) — d emolition and disposalWe can also generate a 25% saving over the reference The goal of this approach is to ensure that follow-onvalue for another value covered by the environ­ment costs and not solely the manufacturing costs arepart of the certification, the drinking water demand minimised early on. Our project scored 10 out of a(SB14). possible 10 points in the life-cycle cost comparison in the certification.Profile SB06 described an important point of thebuilding’s environmental quality. The goal here is to Another role for the economic quality is played byidentify a specific selection of products and materials the Suitability of Third-party Use (SB17), which, forthat can be used during the construction and use example, requires a high degree of convertibilityof the building or can come into contact with the when faced with changing market or environmentaloutdoor air, the soil and the surface and/or ground circumstances. In the case of the 2nd Central project,water, and therefore could have direct effects on we have also produced alternative designs thatthe local environment, mainly the people inside and allow the entire building to be used as a residentialaround the building. complex.We & applied sustainability 50