DES GB2012 E

FUNDS FROM OPERATIONS (FFO) UP 5% Funds from operations (FFO) are used to finance our ongoing invest- ments in portfolio properties, scheduled repayments on our long- term bank loans and the distribution of dividends. During the year under review, FFO of €86.4 million was generated, representing a rise of +4% (2011: €83.1 million). The FFO per share rose by 3% from €1.61 to €1.66. This low increase in FFO is mainly due to one-off costs of €0.16 per share in connection with the refinancing of the Main-Taunus- Zentrum as well as tax payments incurred as the result of Group restructuring. Stripped of these effects, the FFO amounted to €1.82 per share (+13%). 2012 2011 Consolidated profit 122,484 99,038 Measurement gains/losses - Equity-accounted companies -2 -94 - IAS 40/IFRS 3 -8,495 -50,148 Deferred taxes -27,545 34,301 FFO 86,442 83,097 FFO per share 1.66€ 1.61€ Weighted no. of shares in thousands 51,935 51,631 2012 2011 2010 2009 2008 2.36 1.92 -0.17 0.88 2.00 1.35 0.06 1.19 0.98 0.95 0.73 0.54 -0.30 1.13 0.87 Operating proﬁt Extraordinary tax eﬀect Measurement gains/losses Earnings per share in€, basic 1.18 -1.70 in € per share DIVIDEND PROPOSAL: €1.20 PER SHARE Based on a successful financial year, we are able to maintain our divi- dend policy, which is geared towards the long term and continuity. The Executive Board and Supervisory Board will therefore propose to the shareholders at the Annual General Meeting in Hamburg on 20 June 2013 that a dividend of €1.20 per share, 9% or €0.10 higher than the previous year, be distributed for the financial year 2012. For the first time, an amount of €0.31 per share of the dividend will be subject to the deduction of capital gains tax. FINANCIAL POSITION PRINCIPLES AND OBJECTIVES OF FINANCIAL MANAGEMENT For the purposes of financing its investments, Deutsche EuroShop uses the stock exchange to raise equity, as well as the credit and capi- tal markets to borrow funds. Within the Group, both the individ- ual property companies and Deutsche EuroShop AG borrow from banks and serve as bond issuers. Deutsche EuroShop’s credit stand- ing has been shown to be advantageous when negotiating loan terms. The Group can also arrange its financing independently and flexibly. Loans and bonds are taken out in euros for all Group companies. In general, the use of equity and loans for investments should be equally weighted and the equity ratio in the Group (including third-party interests) should not fall significantly below 45%. We finance our real estate projects on a long-term basis and also use derivative financial instruments to hedge against rising capital mar- ket rates. An available credit line enables Deutsche EuroShop to react quickly to investment opportunities. Any cash not needed is invested in time deposits for the short term until it is used for investments, to finance ongoing costs or to pay dividends. GROUP MANAGEMENT REPORT { 128 } DES ANNUAL REPORT 2012 Results of operations, ﬁnancial position and net assets

DES GB2012 E

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