DES GB2015 Englisch

Evaluation of the financial year The Executive Board looks back with satisfaction at the financial year just ended. Revenue came to €202.9 million, against a forecast of €201 to 204 million. This included €1.3 million from mall rental in- come that was previously recognised under other operating income but under the new definition of revenue must now be classed as reg- ular rental income. Adjusted for this effect, revenue was up 0.4% year-on-year, at €201.6 million (2014: €200.8 million). Earnings before interest and tax (EBIT) of €176.3 million were slight- ly lower than the original guidance for financial year 2015 (€177 mil- lion to €180 million). They came in a marginal €1.2 million or 0.7% below the 2014 level of €177.5 million. We expected earnings before taxes (EBT) excluding measurement gains/losses (including at-equity investments) of €126 million to €129 million. At €127.0 million for the year, this item was 1.6% above the level of the previous year (2014: €125.0 million). On FFO, we slightly exceeded the guidance of €2.24 to €2.28 per share, closing the year at €2.29 per share (+2.4%). These results underscore that Deutsche EuroShop is well placed with its first-rate portfolio of shopping centers, even in an increasingly fierce competitive environment. COURSE OF BUSINESS Financial position Deutsche EuroShop can look back on another successful but chal- lenging financial year. The net assets, financial position and results of operations remain very solid, and once again the Company’s forecasts were met and key measures were increased. Revenue rose to €202.9 million, while consolidated profit came to €309.3 million, against €177.4 million the previous year. This took earn- ings per share to €5.73, compared with €3.29 per share in 2014. Oper- ating profit per share advanced 2.7% from €1.84 to €1.89. Measurement gains increased substantially year-on-year in 2015, from €77.0 million to €220.6 million, while measurement gains of joint ven- tures consolidated at equity were also well above the year-earlier lev- el, climbing €34.5 million to €47.2 million (2014: €12.7 million). Earn- ings before tax rose by 1.6%, from €125.0 million in the previous year to €127.0 million. The EPRA net asset value per share rose markedly, up 18% from €33.17 to €39.12. Turnover in the German retail trade (including online retailing) rose by 2.8% in nominal terms and 2.7% in real terms, while the turnover of the tenants in our shopping centers rose overall by a small 0.3%. Tenant turnover at our German shopping centers was close to the pre- vious year’s level (-0.1%), whereas the tenants at our foreign proper- ties increased their turnover by 2.8%. RESULTS OF OPERATIONS Consolidated revenue up 0.4% on adjusted basis Consolidated revenue was up 1.0% over the year, from €200.8 million to €202.9 million. This included €1.3 million from specific mall rental income that was recognised under other operating income in previ- ous years but under the redefinition of revenue must be reclassified from 2015 onwards. Adjusted for this effect, revenue climbed 0.4% to €201.6 million. The revenue growth was primarily the result of index-linked chang- es to rents and of various new rental agreements signed. There were slight falls in revenue at our centers in Norderstedt, Billstedt, Hameln and Dessau only, caused by reletting and renovation-related vacancies. In Dessau, we also saw the impact of temporary market uncertainty regarding the future of the Karstadt property adjacent to the Rathaus Center. We have since bought and relet that property. At City-Arkaden Wuppertal, the long-running roadworks directly adjacent to the center led to a reduction in parking revenue Nevertheless, across the portfolio revenue rose by 0.4% (0.3% domestic, 0.9% international) on a like-for- like basis over the reporting year. Revenue in € million International Domestic 202.9 15.0 187.9 2015 2014 200.8 14.8 185.9 MANAGEMENT REPORT 119

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