DES GB2012 E

Deutsche EuroShop just finished restructuring. What happened? CLAUS-MATTHIAS BÖGE: We reacted to a surprising ruling from the German Federal Fiscal Court (Bundesfinanzhof) and restructured the Deutsche EuroShop Group in such a way that, in future, we will be able to take advantage of the “extended trade tax deduction” for at least a portion of our shopping center port- folio in Germany. We’re working on sustainably optimising this situation; however, that’s an undertaking that will take several years. It was and remains highly complex – unfortunately something German tax law is known for. OLAF BORKERS: One positive effect of this restructuring was that we were able to release €49.3 million in deferred trade tax provisions created during the previous years. While we’re on the positive aspects, were you also able to secure growth? CLAUS-MATTHIAS BÖGE: Yes, we acquired the Herold- Center in Norderstedt just before the end of the year. The invest- ment volume is around €187 million, the initial rate of return about 6.1% – certainly an attractive return on a popular shop- ping center market. ? ? ONE KEY QUALITY OF SUCCESS- FUL RETAILERS IS THEIR WILL- INGNESS TO CHANGE. EVERY TRADER KNOWS THE RETAIL TRADE NEVER STANDS STILL. IN 2012, VERSATILITY WAS CALLED FOR FROM DEUTSCHE EUROSHOP, TOO. NOT FROM AN OPERA- TIONAL PERSPECTIVE, BUT A TAX ONE. DESPITE THE FACT THAT THE GROUP’S RESTRUCTURING PUT A HEAVY STRAIN ON CAPACI- TIES, THE TWO MEMBERS OF THE EXECUTIVE BOARD, CLAUS- MATTHIAS BÖGE AND OLAF BORKERS, WERE ABLE TO CON- TINUE DRIVING THE COMPANY’S GROWTH FORWARD. READ ABOUT HOW THE INDIVIDUAL ISSUES WERE HANDLED IN THE INTER- VIEW WITH THE EXECUTIVE BOARD. 3 DES ANNUAL REPORT 2012 { 9 } Interview with the Executive Board

DES GB2012 E

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