DES H1 E 2013

Interim Report H1 2013 DES Interim Report Q1 2013 { 2 } Business and Economic Conditions Group structure and operating activities Activities Deutsche EuroShop is the only public company in Germany to invest solely in shopping centers in prime locations. As at the reporting date, it had investments in 20 shopping centers in Germany, Aus- tria, Poland and Hungary. The Group generates its reported revenue from rental income on the space which it lets in the shopping centers. Group’s legal structure Due to its lean personnel structure, the Deutsche EuroShop Group is centrally organised. The parent company, Deutsche EuroShop AG, is responsible for corporate strategy, portfolio and risk management, financing and communication. The Company’s registered office is in Hamburg. Deutsche EuroShop is a public company under German law. The individual shopping cen- ters are managed as separate companies and, depending on the share of nominal capital or voting rights, are either fully consolidated or accounted for using the equity method. The share capital amounts to € 53,945,536.00 and is composed of 53,945,536 no-par value registered shares. The notional value of each share is € 1.00. Macroeconomic and sector-specific conditions Despite the continuing recession in several eurozone countries, Ger- many has weathered the crisis well so far. While growth rates remain at a low level, Germany still benefits from sound foreign trade and stable demand on the domestic front. The job market is similarly robust. Uncertainty on the financial markets has noticeably receded, though this has yet to make a visible impact on the real economy. Economic prospects remain very mixed at the macroeconomic level. While the US economy has gained momentum since the start of the year, growth in China and in emerging market economies has declined. From January to June 2013, the German retail sector saw a nominal 1.3 % increase, but a 0.1 % decrease in real terms compared to the first six months of 2012. The economic conditions for private consumption remain favour- able: the situation on the job market is positive; there have been rel- atively high increases in incomes; and prices are stable. As a result, private consumer spending should continue to provide a solid basis for domestic demand over the rest of the year. Results of Operations, Financial Position and Net Assets Results of Operations Revenue increased by 14 % Revenue amounted to € 88.8 million as at 30 June 2013. This is nearly 14 % higher than in the same period of the previous year (€ 77.8 million). Following the increase in the shareholding in the Altmarkt-Galerie Dresden on 1 May 2013, the property is now fully consolidated and the center’s revenue is included in the financial state- ments for two months. The Herold-Center is also included in 2013 for the first time. Revenue rose accordingly by 1.0 % year-on-year. Operating and administrative costs for property: 9.7 % of revenue Center operating costs were € 8.7 million in the reporting period, compared with € 8.6 million in the same period of the previous year. Costs therefore stood at 9.7 % of revenue (previous year: 11 %). Other operating expenses of € 3.5 million The other operating expenses of € 3.5 million exceeded those of the pre- vious year (€ 2.9 million) due to one-off costs (€ 0.5 million) incurred in connection with the exit from the DB 12 Immobilienfonds. EBIT up 15 % Earnings before interest and tax (EBIT) increased by € 10.2 million from € 67.0 million to € 77.2 million. Net finance costs down € 4.4 million At € 22.6 million, net finance costs were down € 4.4 million, which can be attributed to the issue of a convertible bond at the end of the previous year as well as the higher profit share for third-party share- holders. Income from equity-accounted companies was also down on the previous year because of the full consolidation of the Altmarkt- Galerie Dresden since 1 May. Measurement gains / losses The measurement loss amounted to € 2.5 million and included investment costs incurred in our portfolio properties as well as an excess of identified net assets acquired over cost of acquisition in accordance with IFRS 3 resulting from the first-time full consolida- tion of the Altmarkt-Galerie Dresden. EBT excluding measurement gains / losses up 11 % Earnings before taxes (EBT) increased from € 47.1 million to € 52.2 million (+11 %), while the earnings before taxes and measure- ment rose from € 49.0 million to € 54.6 million to end 11 % higher than over the same period of the previous year as well.

DES H1 E 2013

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