• Operating result of Deutsche Euroshop AG up 10%
• Group increases profits
• Forecast for 2003 – operating result of €27.6 million

Hamburg, August 29, 2003 – In H1, Deutsche Euroshop AG (ISIN DE0007480204) generated an operating result (result from ordinary activities) of €15.0 million, up from €13.6 million in the comparable prior-year period. Income from investments contributed €14.0 million (€11.9 million).

In contrast, there was a rise in personnel expenses that could not be fully offset by the fall in other operating expenses, as these still included a €0.2 million agency fee paid to DB Real Estate Management GmbH. After the successive transfer of Deutsche EuroShop’s operational business to Hamburg and the closing of the office in Eschborn the agency agreement with DB Real Estate Management GmbH expired at the end of the first half of 2003.

At €2.0 million, interest income was down €0.7 million in the period under review, as a result of lower interest rates on the one hand and the outflow of cash due to the acquisitions in Q2 2002 on the other. After deduction of taxes on income (deferred taxes), the net profit for the period amounts to €11.1 million, a year-on-year increase of around 10% (€10.0 million).

Group sales rose from €22.4 to €24.3 million. Income from investments was up significantly from €2.1 to €3.6 million as well, following the opening of the shopping centres in Dresden and Kassel in 2002, and their first whole-period contribution to earnings in 2003.

In addition, other operating expenses dropped 8.3% to €4.1 million as a result of a slow-down in investment activity in H1. However, the substantial investments of the previous year and the drop in interest rates in H1 2003 led to a €0.9 million year-on-year decline in interest income to €3.0 million.

Overall, the operating result thus rose by around 76% from €3.4 to €6.0 million. After the deduction of taxes and minority interests, the net profit for the period amounted to €1.2 million (€-0.8 million).

Deutsche EuroShop AG remains confident of increasing the full-year operating result from €24.8 to €27.6 million in 2003 as planned. As in previous years, the unappropriated surplus is expected to be around €30 million.

The available cash reserves of €47 million are to be invested in additional equity interests in shopping centres before the end of the year. This will increase the portfolio diversification and hence reinforce the continuity of Deutsche EuroShop’s earnings.

Selected key figures

 

Euro million	Group		AG
	01.01.– 30.06.2003	01.01.– 30.06.2002	01.01.– 30.06.2003	01.01.– 30.06.2002
Sales	24.3	22.4
Income from investments	3.6	2.1	14.0	11.9
Net interest income/expense	-6.4	-5.3	2.0	2.7
Result from ordinary activities	6.0	3.4	15.0	13.6
Net profit/loss for the period	1.3	-0.8	11.0	10.0
EBITDA	23.2	19.4	-	-
Free cash flow per share (Euro)	-	-	0.96	0.87
Earnings per share (Euro)	0.08	-0.05	-	-
	0.06.2003	31.12.2002	30.06.2003	31.12.2002
Total assets	963	1,000	610	632
Fixed assets	808	815	513	513
Current assets	155	185	97	119
Equity	528	557	591	610
Liabilites	412	420	0.4	7
Equity ratio (%)	54.8	55.7	96.9	96.5

Note
This interim report of Deutsche EuroShop AG is available in German and English and can be downloaded as PDF files on the Internet.