Deutsche EuroShop AG / Half Year Report Corporate news transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Deutsche EuroShop: Earnings jump in H1 2006 - Revenue +30% - EBIT +38% - Profit +166% - Earnings per share Euro 1.39 - New shopping center in Poland Hamburg, 11 August 2006 – In the first half of financial year 2006 Deutsche EuroShop realised a revenue of Euro 45.9 million (prior-year period: Euro 35.2 million) and an EBIT of Euro 39.0 million (Euro 28.2 million). The consolidated profit attributable to Group shareholders increased by 166% to Euro 23.9 million compared to the first half of financial year 2005 (Euro 9.0 million). Revenue up 30% Revenue rose by 30% from Euro 35.2 million to Euro 45.9 million in the first six months of financial year 2006. This increase is amongst others attributable to City Arkaden Klagenfurt, which contributed to revenue for a complete quarter for the first time. The acquisition of the Rathaus-Center in Dessau and the first-time inclusion of the Main-Taunus-Zentrum also had a positive effect on revenue. Rental income from the portfolio properties rose by approximately 1%. One-time effect lifts other operating income Other operating income rose by Euro 0.6 million to Euro 1.5 million, as this item includes the gain from the sale of the French shopping center (Euro 0.8 million). Expenses slightly up Other operating expenses (incl. property operating and administrative costs) amounted to Euro 8.3 million. This does not represent a significant change on the prior-year period (Euro 7.8 million). EBIT up 38% Earnings before interest and taxes (EBIT) rose by 38%, from Euro 28.2 million to Euro 39.0 million. Net finance costs in line with forecasts Net finance costs deteriorated by Euro 4.6 million to Euro -17.7 million. This was primarily due to higher interest expenses for the newly opened centers. Currency effects now included in measurement gains and losses For the first time, the market value of the Árkád Pécs property was no longer reported at the Group level in the second quarter, but rather in forints in the Hungarian annual financial statements. The translation into forints resulted in an unrealized currency gain. The unrealized currency effects relating to non-current liabilities reported in the Hungarian annual financial statements, which had previously been reported under other operating expenses and other operating income, were reclassified as measurement gains and losses. The figures for the first quarter of 2006 and the first half of 2005 were restated retroactively. In total, measurement gains and losses includes a Euro 1.1 million currency gain in the first half of 2006. EBT significantly improved At Euro 29.6 million, profit from ordinary activities (EBT) substantially exceeded the prior-year figure (Euro 14.1 million). Adjusted for measurement gains and losses, EBT rose by 41% to Euro 21.4 million. Consolidated net profit more than doubled Consolidated net profit for the period amounted to Euro 25.4 million (2005: Euro 10.4 million). Of this, Euro 23.9 million was attributable to Group shareholders, as against Euro 9.0 million in the prior-year period. Earnings per share rose accordingly from Euro 0.58 to Euro 1.39 (+140%). Of this amount, Euro 1.03 resulted from operating profit and Euro 0.36 from measurement gains and losses. Shopping center in Gdansk purchased Deutsche EuroShop has acquired a 74% interest in the Galeria Bałtycka in Gdansk, Poland. The proportional investment volume amounts to around EUR 123 million, with an initial yield of 6.8%. Deutsche EuroShop’s portfolio now consists of 16 shopping centers. The goal for 2006, acquisitions with a volume of Euro 100 – Euro 150 million, is now already reached. Outlook The Executive Board maintains the revenue and earnings targets for 2006 and expects revenue of Euro 91 – Euro 94 million (2005: Euro 72.1 million) and EBIT of Euro 72 – Euro 75 million (Euro 57.5 million). The management expects to increase EBT excluding measurement gains and losses from Euro 32.1 million to Euro 37 – 40 million. In addition, the Executive Board remains confident that Deutsche EuroShop will again be able to distribute a tax-free dividend of Euro 2.00 per share for financial year 2006. Webcast of the conference call Deutsche EuroShop will webcast its English conference call on Friday, 11 August 2006, at 10:00 a.m. CET live on the Internet. The webcast can be accessed at the Company's website at http://www.deutsche-euroshop.com/ir. At the same internet address the complete Interim Report is available as PDF file and as interactive online version. Key Data of Deutsche EuroShop (IFRS) 01 Jan. – 01 Jan. – Euro million 30 Jun. 2006 30 Jun. 2006 +/- Revenue 45.9 35.2 30% EBIT 39.0 28.2 38% Net finance costs -17.7 -13.1 -35% EBT 29.6 14.1 110% Consolidated profit attributable to Group shareholders 23.9 9.0 166% EPS (Euro) 1.39 0.58 140% 30 Jun. 31 Dec. 2006 2005 +/- Equity 766.4 787.4 -3% Liabilities 737.3 677.1 9% Total assets 1,574.4 1,543.6 2% Equity ratio (%) 48.7 51.0 Gearing (%) 105 96 Cash and cash equivalents 81.0 197.2 -59% DGAP 11.08.2006 ---------------------------------------------------------------------- Language: English Issuer: Deutsche EuroShop AG Oderfelder Straße 23 20149 Hamburg Deutschland Phone: +49 (0)40 413 579-0 Fax: +49 (0)40 413 579-29 E-mail: ir@deutsche-euroshop.de WWW: www.deutsche-euroshop.de ISIN: DE0007480204 WKN: 748020 Indices: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, München, Hamburg, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------