Ladies and Gentlemen,

Artificial intelligence and new technologies are driving the process of digital transformation. Courage and a pioneering spirit are needed if the associated opportunities are to be exploited. Business models and processes are undergoing a re-think. Creativity, ideas, openness and enthusiasm are becoming increasingly important success factors. The process of change must be proactively managed if we are not to be left behind by the digital transformation. We want to support our customers with an eye to the future. We regard ourselves as a one-stop IT service partner whose offerings include:

Our customers are always at the heart of all we do and we aspire to offer user-oriented solutions designed to make them even more successful.

Success – another record result

Aareon once again successfully implemented its international growth strategy in fiscal 2019, posting another record result: the company’s EBIT (after strategic capital expenditures) was up 8.1 % at € 38.8 million (previous year: € 35.9 million). Operative EBIT– adjusted for non-recurring effects – increased by 10.6 % to € 41.6 million (previous year: € 37.6 million). We were also able to increase our consolidated revenues by 6.5 % to € 251.9 million (previous year: € 236.6 million).

Collaboration with the start-up scene – first venture established

Aareon has been collaborating with the start-up scene for a number of years. In 2018, it established Ampolon Ventures (AV Management GmbH) with a view to testing its own business ideas in the market. An integral part of the Proptech scene, Ampolon Ventures aims to set up new ventures and to forge partnerships with ambitious company founders. 2019 saw the establishment of the first venture, OFI Group GmbH, Frankfurt am Main, which offers the digital office rental platform Ophigo. Aareon has a share in the PropTech Immomio (digital rental platform) in Germany and, as of 2019, in OSRE (digital platform for real estate transactions) in the Netherlands. It also has a stake as a strategic partner in blackprint Booster Fonds and blackprint Booster Fonds International, which support future-oriented start-ups in the real estate environment. In addition to the above initiatives, Aareon cooperates with a number of PropTech companies at international level.

One Aareon – new structures strengthen customer- and market-oriented organisation

The successful international growth strategy also encompassed our ongoing internal optimisation, designed to boost organisational performance and profitability. Implementation of a new, Group-wide organisational structure featuring the three international divisions Market (consulting and sales), Operatives (ERP solutions and outsourcing business) and Digital Solutions and Ventures got under way at the start of April with a view to enhancing our market and customer orientation. By the end of the year, the target organisational structure had been implemented as envisaged in all country units. As part of the organisational adjustments and the planned development of further market potential in Austria and Switzerland, Aareon’s management in Germany also assumed responsibility for business in the Austrian and Swiss markets.

New working world – digital collaboration tool supports cooperation

The focus of the work4future project in 2018 was on preparing for the introduction of a digital collaboration tool in the following year. The Aareon Group launch took place at the start of April, with the tool enjoying high levels of acceptance. It brings employees throughout the Aareon Group closer together by means of networking, transparency and dialogue. We reviewed the flexibility of our working-time models in 2018 in the light of our employees’ requirements and, in 2019, introduced a new company-wide agreement on off-site working options.

New ideas result from openness and dialogue, and we appreciate being able to collaborate with our customers, business partners, employees and our shareholder, Aareal Bank, in thinking beyond perceived boundaries. This is the only way of identifying new opportunities and implementing them to the benefit of all those concerned. We thank all our stakeholders for this cooperation. We intend to continue this successful approach as an IT service partner of the housing sector and related industries in 2020.

Our outlook does not account for the potential impact that may result from the global outbreak of the coronavirus. Both society and the economy are facing new challenges in the wake of the coronavirus. Aareon takes its responsibility seriously and is therefore committed to making the best possible contribution to protecting customers, employees and their respective environments, all of which is aimed at preventing the further spread of this virus. Furthermore, our digital structures enable us to ensure operations will continue, by using digital and remote work arrangements. Due to the current situation in March 2020, our employees are working almost entirely from home. We are doing everything to ensure that we can continue to provide our customers with the service and quality that they come to expect from us.

Best regards,