DES GB2012 E

Report of the Supervisory Board Federal Fiscal Court (Bundesfinanzhof) regarding the extended trade tax deduction, were the subject of particularly intense dis- cussions during the financial year. Regular discussions were conducted with the Executive Board regarding trends on the capital, credit, real estate and retail mar- kets and the effects of these on the Company’s strategy. The Executive Board and Supervisory Board also examined various investment options. We received regular reports detailing the turnover trends and payment patterns of our tenants and the credit policies of the banks. The Chairman of the Supervisory Board and the Executive Com- mittee of the Supervisory Board also discussed other topical issues with the Executive Board as required. Transactions requir- ing the approval of the Supervisory Board were discussed and resolved upon at the scheduled meetings. In addition, for trans- actions of the Executive Board requiring approval, circular res- olutions were passed in writing by the Supervisory Board. All resolutions in the reporting period were passed unanimously. MEETINGS Five scheduled Supervisory Board meetings took place during financial year 2012. The only absences were recorded at the con- stituent meeting on 21 June 2012; in this case, three members of the Supervisory Board were excused from attending. They granted voting proxies prior to the meeting. Dear Shareholders, During financial year 2012, the Supervisory Board performed the duties incumbent on it according to the law and the Articles of Association and closely followed the performance of Deutsche EuroShop AG. The strategic orientation of the Company was coor- dinated with the Supervisory Board, and the status of the strategy implementation was discussed at regular intervals. The Super- visory Board monitored and advised the Executive Board on its management of the business, and the Executive Board informed us regularly, promptly and in detail of business developments. FOCUS OF ADVISORY ACTIVITIES We examined the Company’s net assets, financial position and results of operations, as well as its risk management, regularly and in detail. In this context, we checked that the formal con- ditions for implementing an efficient system of monitoring our Company were met and that the means of supervision at our disposal were effective. We were informed on an ongoing basis of all significant factors affecting the business. We considered the development of the portfolio properties, spe- cifically their turnover trends, the accounts receivable and occu- pancy rates as well as the Company’s liquidity position. The Exec- utive Board’s plans to restructure the Group, which, according to an assessment by the Executive Board and the Supervisory Board, became necessary following the ruling by the German DES ANNUAL REPORT 2012 { 14 } Report of the Supervisory Board

DES GB2012 E

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