DES GB2012 E

Other disclosures MARKET RISKS LIQUIDITY RISK The liquidity of Deutsche EuroShop Group is continuously monitored and planned. The subsidiaries regularly have sufficient cash to be able to pay for their current commitments. Furthermore, credit lines and bank overdrafts can be utilised at short notice. The contractually agreed future interest and principle repayments of the original financial liabilities and derivative financial instruments are as follows as at 31 December 2012: CARRYING AMOUNT 31.12.2012 CASH FLOWS 2013 CASH FLOWS 2014 TO 2017 CASH FLOWS FROM 2018 Convertible bonds 91,943 1,750 106,803 0 Bank loans and overdrafts 1,565,291 404,269 541,433 1,016,316 The amounts relate to all contractual commitments existing on the balance sheet date. The majority of the trade payables and other financial liabilities reported at the end of the financial year will fall due in 2013. CREDIT AND DEFAULT RISK There are no significant credit risks in the Group. The trade receivables reported on the reporting date were pre- dominantly paid up to the date of preparation of the financial statements. During the reporting year, write-downs of rent receivables of €797 thousand (previous year: €441 thousand) were recognised under property operating costs. The maximum default risk in relation to trade receivables and other assets totalled €12,169 thousand (previous year: €12,298 thousand) as at the reporting date. CURRENCY AND MEASUREMENT RISK The Group companies operate exclusively in the European Economic Area and conduct the greater part of their business in euro. This does not entail currency risks. A 25 bp change in a material parameter of real estate appraisals would have the following pre-tax impact on measurement gains/losses: BASIS -0,25% +0,25% Rate of rent increases 1,70% -110,2 +113 Discount rate 6,67% +101,9 -97 Cost ratio 11,00% +9,5 -9,5 INTEREST RATE RISK A sensitivity analysis was implemented to determine the effect of potential interest rate changes. Based on the finan- cial assets and liabilities subject to interest rate risk on the balance sheet date, this shows the effect of a change on the Group‘s equity. Interest rate risks arose on the balance sheet date only for credit borrowed and the associated interest rate hedges, which are recognised in equity as cash flow hedges at present value. An increase in the market interest rate of 100 basis points would lead to an increase in equity of €19,112 thousand (previous year: €18,320 thousand). The majority of the loan liabilities have fixed interest terms. On the reporting date, loans totalling €194,651 thou- sand (previous year: €198,651 thousand) were hedged using derivative financial instruments. € thousand € thousand CONSOLIDATED FINANCIAL STATEMENTS { 174 } DES ANNUAL REPORT 2012

DES GB2012 E

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