DES GB2015 Englisch

The Executive Board gives regular presenta- tions to analysts and at investor events as part of the Company’s investor relations activities. Analyst conferences on the release of the an- nual and quarterly financial statements are broadcast over the Internet, where they are available to anyone interested in the Company. In addition, Deutsche EuroShop AG provides financial information and other information about the Deutsche EuroShop Group on its website. ACCOUNTING AND AUDITS The Deutsche EuroShop Group prepares its financial statements according to Interna- tional Financial Reporting Standards (IFRSs) on the basis of section 315a of the Handels- gesetzbuch (HGB – German Commercial Code). The annual financial statements of Deutsche EuroShop AG will continue to be prepared in line with the accounting provisions of the HGB. The Executive Board is responsible for the preparation of the financial statements. The Chairman of the Audit Committee com- missions the auditor of the annual financial statements, as elected by the Annual General Meeting. The stricter requirements for auditor independence are met in this process. OUTLOOK The composition of the Supervisory Board has changed significantly over the past three years in view of the change of generations and new requirements as to its membership. Its ade- quate composition is assured and it is also en- sured that the specifications of the German Corporate Governance Code will be complied with in a balanced manner. Declaration of conformity In November 2015, the Executive and Supervisory Boards of the Company jointly submitted their updated declaration of conformity with the recommendations of the Government Commission on the German Corporate Governance Code for financial year 2015 in accordance with sec- tion 161 of the Aktiengesetz (AktG – German Public Companies Act). The declaration was made permanently available to the public on the Company’s website at www.deutsche-euroshop.de. Joint declaration by the Executive and Supervisory Boards of Deutsche EuroShop AG relating to the recommendations of the Government Commission on the German Corporate Governance Code in accordance with section 161 AktG The Executive Board and the Supervisory Board of Deutsche EuroShop AG declare that the Company has complied with, and will continue to comply with, the recommendations of the Government Commission on the German Corporate Governance Code (as published by the Ger- man Federal Ministry of Justice in the official section of the electronic German Federal Gazette (Bundesanzeiger) on 4 July 2003, and as amended on 5 May 2015), subject to a limited number of exceptions as indicated below: • The existing D&O insurance policy taken out for the Supervisory Board does not provide for any deductible (Section 3.8). In accordance with the statutory provisions of Article 93 (2) sentence 3 AktG, a deductible was agreed upon for the Executive Board. No deductible is foreseen for the Supervisory Board in the future. In the Executive Board and Supervisory Board's view, a deductible has no effect on the sense of responsibility and loyalty with which the members of these bodies perform the duties and functions assigned to them. • The Supervisory Board did not select a senior management team for a comparison of compensation (German Corporate Governance Code Section 4.2.2). Since the staff of Deutsche EuroShop AG consists of just four people, a differentiation between these and a senior management team would not be meaningful. In this respect, only the relationship between the compensation paid to the Executive Board and that paid to the overall staff can be considered by the Supervisory Board. • No limit has been set for the terms of office of members of the Supervisory Board. (Section 5.4.1). The Supervisory Board believes that professional qualifications and skills represent the key criteria for members of the Supervisory Board. Limiting the term of office could force the retirement of a qualified and successful Supervisory Board member. • The consolidated financial statements are published within 120 days of the end of the financial year (Section 7.1.2). It is important to the Company to publish audited financial statements that have been approved by the Supervisory Board. An earlier publication date is not feasible due to the schedules for the preparation, auditing and adoption of the financial statements. Unaudited data of relevance to the capital market is published in advance. Hamburg, 27 November 2015 Executive Board and Supervisory Board Deutsche EuroShop AG The composition of the Supervisory Board has changed significantly over the past three years in view of the change of generations and new requirements as to its membership. Its ade quate composition is assured and it is also en sured that the specifications of the German Corporate Governance Code will be complied with in a balanced manner. INVESTOR RELATIONS 111

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