DES GB2012 E

CAPITAL MANAGEMENT The Group’s capital management is designed to maintain a strong equity base with the aim of ensuring that its ability to repay its debts and financial well-being are maintained in the future. The Group’s financial policies are also based on the annual payment of a dividend. 31.12.2012 31.12.2011 Equity 1,606,090 1,473,119 Equity ratio (%) 45.3 45.7 Net financial debt 1,489,723 1,407,741 Equity is reported here including the share of the third-party shareholders. Net financial debt is determined from the financial liabilities on the balance sheet date less cash and cash equivalents. 31. JOINT VENTURES AND EQUITY-ACCOUNTED ASSOCIATES JOINT VENTURES Joint ventures in which Deutsche EuroShop AG together with third parties has a majority of the voting rights are proportionately included as joint ventures in the consolidated financial statements. For the purposes of proportion- ate consolidation, the share of the assets which are jointly controlled and the share of liabilities for which Deutsche EuroShop AG is jointly responsible are recognised in the consolidated balance sheet. The income statement includes the share of income and expenses of the jointly controlled companies. During the financial year, assets and liability items and income of the subsidiaries defined as joint ventures in line with IAS 31.56 were recognised in the consolidated financial statements as follows: 31.12.2012 31.12.2011 Non-current assets 506,584 510,701 Current assets 12,565 9,065 Non-current liabilities 195,353 149,874 Current liabilities 5,942 46,479 Income 35,529 30,024 Expenses -20,588 -16,315 EQUITY-ACCOUNTED ASSOCIATES Small property companies in which Deutsche EuroShop indirectly or directly has an interest are part of the Group. Deutsche EuroShop exercises a controlling influence over these companies together with other shareholders. Overall, these companies are not important to the Group. The share in these companies’ equity is compared to the net carrying amount and any differences are recognised in income. The share in the profits/losses of these companies is assigned to the domestic segment. € thousand € thousand { 175 } DES ANNUAL REPORT 2012 CONSOLIDATED FINANCIAL STATEMENTS Other disclosures

DES GB2012 E

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