CONTENTS KEY FIGURES COMBINED MANAGEMENT REPORT Basic information about the Group Economic review Report on events after the reporting date Outlook Risk report Opportunity report Remuneration report Acquisition reporting Declaration on corporategovernance Reporting on the separate financial statements of Deutsche EuroShop AG 1 2 2 4 15 15 16 22 23 25 26 26 RESPONSIBILITY STATEMENT BY THE EXECUTIVE BOARD INDEPENDENT AUDITOR’S REPORT EPRA REPORTING REPORT OF THE SUPER VISORY BOARD CORPORATE GOVERNANCE LEGAL DISCLAIMER 61 61 66 73 77 86 86 CONSOLIDATED FINANCIAL STATEMENTS 30 30 Consolidated balance sheet 32 Consolidated income statement Statement of comprehensive income 33 34 Consolidated statement of changes in equity 35 Consolidated cash flow statement Notes 36

COMBINED MANAGEMENT REPORT / Basic information about the Group COMBINED MANAGEMENT REPORT The information provided in the combined management report applies to both the Group and Deutsche EuroShop AG, except where otherwise stated. The separate financial statements of Deutsche EuroShop AG are reported on in a separate section of the combined management report. The shopping centers are held by independent companies, with Deutsche EuroShop holding stakes of 100% in twelve of them and between 50% and 75% in the other nine. Further information on the incorporation of these companies into the consolidated annual results is provided in the notes to the consolidated financial statement. BASIC INFORMATION ABOUT THE GROUP The Group managing company is Deutsche EuroShop AG. It is responsible for corporate strategy, portfolio and risk management, financing and communication. The Deutsche EuroShop Group has a central structure and lean personnel organisation. GROUP BUSINESS MODEL, TARGETS AND STRATEGY Deutsche EuroShop is an Aktiengesellschaft (public company) under German law. The Company’s registered office is in Hamburg. Deutsche EuroShop is the only public company in Germany to invest solely in shopping centers in prime locations. A total of 21 shopping centers in Germany, Austria, Poland, Hungary and the Czech Republic are held in the real estate portfolio. The Group generates its reported revenue from rental income on the space it lets in the shopping centers. Objectives and strategy The management focuses on investments in high-quality shopping centers in city centers and established locations offering stable long-term value growth. A key investment target is the generation of high surplus liquidity from long-term leases in shopping centers, of which a significant part can be paid out to shareholders in the form of an annual dividend. To this end, the Company invests its capital in shopping centers in different European regions in accordance with the principle of risk diversification. Germany is the main focus for investment. Indexed and turnover-linked commercial rents ensure that high earnings targets are achieved. The Company may invest up to 10% of equity in joint ventures in shopping center projects in the early stages of development. 2 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Economic review ECONOMIC REVIEW MACROECONOMIC AND SECTOR-SPECIFIC CONDITIONS In 2019, Germany’s gross domestic product (GDP) rose by 0.6%, according to the calculations of the German Federal Statistical Office. In comparison to the previous two years in which growth stood at 1.5% (2018) and 2.5% (2017), the momentum has dropped off significantly. Positive impetus continued to come mainly from the domestic market, particularly from increased consumer spend- ing and a sustained high level of investment in construction. Spend- ing by private households which profited from the positive trend on the labour market, rose by a price-adjusted 1.6% and government spending by 2.5%. Investment in construction increased in 2019 by a price- adjusted 3.8%, with investment in civil engineering pro- jects and residential developments, in particular, higher than in the previous year. On the labour market, the positive trend of recent years also continued: On average, 2.3 million people were registered as unem- ployed during the year, putting the unemployment rate at 5.0% ( previous year: 5.2%). Consumer prices in Germany rose by 1.4% versus 2018. At 1.4% (previous year: 4.6%), the increase in prices was smaller than in the previous year due to the cautious and some- times even declining trend in prices in the energy sector through- out the year. In 2019, real employee pay rose by 1.2% according to the German Federal Statistical Office. In an environment with ongoing high employment and incomes rising in real terms, the propensity to con- sume fell slightly by comparison with the previous year, but was still at a very good level according to market research institution GfK. The savings rate in 2019 – at 10.9% (previous year: 11.0%) – remained almost at the prior-year level, and private consumer spending, making up 52.2% of GDP, rose by 1.6% (price-adjusted). According to provisional calculations by the German Federal Sta- tistical Office, German retail sales (including online sales) posted nominal growth of 1.7% and real growth of 0.8% over 2018, with rising online sales in particular again contributing to the positive sales growth in retail. According to figures from the German Retail Federation (HDE), online sales increased year-on-year to around €57.8 billion, an increase of approximately 8.4%. This equates to roughly a 10.4% share of total retail sales in 2019, which according to the HDE statistics came to €537.4 billion. Bricks-and-mortar retail sales in Germany grew 1.3% in nominal terms in 2019, though the key indicator for shopping centers of bricks-and-mortar fashion retail sales registered a 2.0% decline according to figures from the indus- try magazine TextilWirtschaft. The centers’ competitive position in the Deutsche EuroShop port- folio is determined with reference to both the shops in the relevant city centers and other shopping centers in the catchment area. The centers also have to compete with major regional city centers. For example, the city centers of Dortmund, Mannheim and Braun- schweig are serious rivals to the Allee-Center in Hamm, the Rhein-Neckar-Zentrum in Viernheim and the City-Galerie in Wolfs- burg respectively. There can be additional competition for city center retail in the form of growing numbers of factory and designer outlets on greenfield sites outside the city limits and to a certain extent also within them. For example, there have long been plans for a large-scale project development in Remscheid in the catchment area of our shopping center in Wuppertal. GfK estimates that total retail floor space in Germany increased by 0.6% in 2019 (previous year: +0.6%). In addition to further growth in available retail space, the competitive situation in bricks-and-mortar retailing and in our shopping centers is being intensified particularly by the strong, steady gains being made by online shopping, a channel which continues to absorb much of the growth in retail sales. Retail sector Based on the calculations of real estate consultants JLL, rental turnover on retail spaces leased in Germany rose 4% to 500,100 m² in 2019, despite a subdued mood in the retail sector. The average leased area fell to 430 m² (previous year: 445 m²), with 54% (previ- ous year: 52%) of lease agreements concluded concerning spaces smaller than 250 m². Just under 11% of all retail sales in Germany in 2019 were gener- ated online. Online sales of fast-moving consumer goods (consumer goods that are purchased particularly frequently and are normally required on a daily basis, such as food, cleaning supplies and body care products) enjoyed particularly strong growth (+14.2%), though remained a niche business when viewed by share of total sales in food retail (< 1.3%). The largest segment, electronics & telecommu- nications, grew by 11.5%, while the second-largest retail segment in terms of sales, namely fashion, increased by 11.4%. The share of online sales generated by clothing and textiles grew by some 5% in 2019, according to figures from the Federal Association of German Textile Retailers (Bundesverband des Deutschen Textileinzelhandels), and stood at 23.5%. The trend of purely online retailers renting physical shops in central locations or taking over bricks-and-mortar retailers within the framework of company acquisitions, or entering into joint ventures with bricks-and-mortar retailers, in order to achieve multi-channel capability, which is becoming increasingly important to consumers, also continued in 2019. As in previous years, online retail and offline retail are increasingly merging. 4 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Economic review (forecast: €2.40 to €2.44). Excluding non-recurring effects, the oper- ating result remained stable in 2019 despite a continued competitive retail environment. Comparable revenues with slightly higher oper- ating costs that are offset by lower interest expenses are the main reasons for this stable performance. RESULTS OF OPERATIONS OF THE GROUP RESULTS OF OPER ATIONS The investment measures launched in the previous year to modern- ise and position the existing portfolio as well as the increase in aver- age acquisition yields and the reduced rental income growth fore- casts for shopping centers in Germany resulted in a measurement loss of €-120.0 million (previous year: €–58.3 million). Income from the reversal of deferred taxes of €73.4 million had a substantial pos- itive influence on consolidated profit, which stood at €112.1 million (previous year: €79.4 million). This reversal is mainly the result of the corporate restructuring completed during the financial year, which will allow the extended trade tax reduction to be used to a greater extent than before in future. in € thousand Revenue Operating and administrative costs for property NOI Other operating income Other operating expenses EBIT At-equity profit / loss Measurement gains / losses (at equity) Deferred taxes (at equity) At-equity (operating) profit / loss Interest expense Profit / loss attributable to limited partners Other financial gains or losses Financial gains or losses (excl. measurement gains / losses) EBT (excl. measurement gains / losses) Measurement gains / losses Measurement gains / losses (at equity) Measurement gains / losses (including at-equity profit / loss) Income taxes Deferred taxes Deferred taxes (at equity) Deferred taxes (including at equity) CONSOLIDATED PROFIT 01.01. – 31.12.2019 01.01. – 31.12.2018 4,345 25,854 417 225,941 -24,429 201,512 1,915 -5,958 197,469 30,616 -49,256 -18,443 2,745 -34,338 163,131 27,602 2,608 477 -94,188 -25,854 -55,715 -2,608 Change + / - 894 -2,246 -1,352 87 -401 225,047 -22,183 202,864 1,828 -5,557 199,135 -1,666 30,687 -52,726 -18,448 2,286 -38,201 160,934 -71 3,470 5 459 3,863 2,197 -120,042 -4,546 -58,323 -10,573 -61,719 6,027 73,965 -417 -12,166 -477 73,548 112,091 -12,643 79,395 86,191 32,696 in % 0.4 -10.1 -0.7 4.8 -7.2 -0.8 -0.2 6.6 0.0 20.1 10.1 1.4 -105.8 57.0 681.7 41.2 6 Deutsche EuroShop / Financial Repor t 2019

INCOME STATEMENT OF THE JOINT VENTURES in € thousand Allee-Center, Magdeburg Phoenix-Center, Harburg Stadt-Galerie, Passau Saarpark-Center, Neunkirchen City-Arkaden, Klagenfurt Árkád, Pécs Other Revenue Operating and administrative costs for property NOI Other operating income Other operating expenses COMBINED MANAGEMENT REPORT / Economic review Operating and administrative costs for property at 10.8% of revenue Center operational costs in the reporting period, at €24.4 million, which comprised mainly of center management fees, non- allocable ancillary costs, maintenance and write-downs of rent receivables, rose compared with the same period of the previous year (€22.2 mil- lion), due in particular to higher write-downs and non-allocable ancil- lary costs. At a cost /revenue ratio of 10.8% (previous year: 9.9%), costs were in line with the budget. Other operating income and expenses Other operating income, stemming primarily from the reversal of provisions, reimbursements and income from rental receivables written down in previous years, amounted to €1.9 million (previous year: €1.8 million) and was thus on par with the previous year. Other operating expenses, which mainly comprise general administrative costs and personnel costs, were €0.4 million up on the same period of the previous year (€5.6 million) at €6.0 million. EBIT down slightly on the previous year At €197.5 million, earnings before interest and tax (EBIT) were slightly down (-0.8%) on the previous year (€199.1 million) largely due to the increase in center operational costs in comparison with the previous year. Financial gains or losses excluding measurement effects on the up Financial gains or losses (excluding measurement gains / losses) improved by €3.9 million from €-38.2 million in the previous year to €-34.3 million. This was principally due to the interest expense of the Group companies, which came in €3.5 million lower than in the same period of the previous year due to scheduled repayments and better refinancing terms for the Altmarkt-Galerie Dresden and the Rhein-Neckar-Zentrum Viernheim. The at-equity profit recognised in financial gains or losses, at €30.6 million (previous year: €30.7 million), was at the previous year’s level. Other financial gains or losses of € 2.7 million were mainly the result of the interest refund for a trade tax reimbursement. We have already reported on the background to these positive non- recurring effects from tax refunds in the section of the Annual Report 2018 entitled “38. Events after the reporting date”. In the previous year, other financial gains or losses consisted mainly of a measurement gain on an interest rate swap for the financing of the Altmarkt-Galerie in Dresden, which expired in 2018. 01.01. – 31.12.2019 01.01. – 31.12.2018 Change + / - in % 7,965 7,872 93 1.2 7,146 7,232 -86 -1.2 7,202 7,094 108 1.5 6,105 6,259 -154 -2.5 6,668 4,011 35 6,629 3,888 35 39,132 39,009 39 123 0 123 0.6 3.2 0.0 0.3 -4,834 -4,519 34,298 34,490 -315 -192 -7.0 -0.6 356 -346 266 90 33.8 -307 -39 EBIT 34,308 34,449 -141 Interest income Interest expense Other financial gains or losses Financial gains or losses 1 2 -3,902 -3,984 350 348 -3,551 -3,634 Current tax expense -141 -128 -1 82 2 83 -13 -12.7 -0.4 -50.0 2.1 0.6 2.3 -10.2 At-equity profit (excluding measure- ment gains / losses) Measurement gains / losses 30,616 30,687 -71 -0.2 -25,854 -2,608 -23,246 -891.3 Deferred taxes -417 -477 60 12.6 SHARE OF PROFIT/ LOSS 4,345 27,602 -23,257 -84.3 EBT (excluding measurement gains / losses) up by 1.4% The interest savings for the ongoing financing as well as the one-off interest refund led to an increase in EBT (excluding measurement gains / losses) from €160.9 million to €163.1 million (+1.4%). 8 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Economic review Stable development of funds from operations (FFO) Funds from operations (FFO) are used to finance our ongoing invest- ments in portfolio properties, scheduled repayments on our long- term bank loans and the distribution of dividends. Significant non- recurring effects that are not part of the Group’s operating activities are eliminated in the calculation of FFO. At €149.6 million (previous year: €150.4 million) or €2.42 per share (previous year: €2.43 per share), FFO stood at almost the same level as in the previous year. FUNDS FROM OPER ATIONS (FFO) in € million /per share in € 123.4 129.9 148.1 150.4 149.6 2.54 2.41 2.43 2.42 2.29 2015 2016 2017 2018 2019 FUNDS FROM OPER ATIONS Consolidated profit Measurement gains / losses investment properties 1 Tax refund for previous years 2 Other measurement gains / losses Deferred taxes 1 FFO 01.01. – 31.12.2019 01.01. – 31.12.2018 in € thousand per share in € in € thousand per share in € 112,091 120,042 -8,994 0 -73,548 149,591 1.81 1.94 -0.15 0.00 -1.18 2.42 79,395 58,314 0 9 12,643 150,361 1.29 0.94 0.00 0.00 0.20 2.43 Weighted number of no-par-value shares issued 61,783,594 61,783,594 1 2 Including the share attributable to equity-accounted joint ventures and associates Including the interest reimbursement and the tax expense attributable to this reimbursement Results of operations of the segments The subsidiaries and equity-accounted joint ventures are included in the Group’s segment reporting in proportion to the Group’s share therein. A distinction is made between the shopping centers in Germany (“domestic”) and elsewhere in Europe (“abroad”) (for further details, please see our statements on segment reporting in the notes to the consolidated financial statements): in € thousand Revenue Domestic Abroad EBIT Domestic Abroad EBT (excl. measurement gains / losses) Domestic Abroad 01.01. – 31.12.2019 01.01. – 31.12.2018 240,191 196,556 43,635 213,330 172,556 40,774 164,579 130,932 33,647 239,188 196,070 43,118 214,709 174,360 40,349 164,699 131,568 33,131 Change + / - 1,003 486 517 -1,379 -1,804 425 -120 -636 516 in % 0.4 0.2 1.2 -0.6 -1.0 1.1 -0.1 -0.5 1.6 10 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Economic review LOAN STRUC TURE as at 31 December 2019 Interest rate lock-in as % of loan in € million Average residual maturity (years) Average interest rate (in %) Up to 1 year 1 to 5 years 5 to 10 years Over 10 years TOTAL Of the 20 loans across the Group, 14 are subject to credit covenants with the financing banks. There are a total of 22 different covenants for debt service cover ratios (DSCRs), interest cover ratios (ICRs), changes in rental income, the Group’s leverage ratio and its loan- to-value ratio (LTV). All conditions were met. Based on the budgeted figures, compliance with the covenants may also be assumed in the current financial year and for the planning period until 2024. With regard to the uncertainties relating to the planning period up to 2024 as a result of the coronavirus pandemic, please refer to the report on events after the reporting date. Scheduled repayments totalling €16.8 million will be made from current cash flow during financial year 2020. Over the period from 2021 to 2024, repayments will average €11.8 million per annum. A loan of €61.8 million, for which negotiations for its refinancing as well as for increasing it to €70 million are in the final stages, will be up for extension at the end of financial year 2020. Further loans of €136.5 million, €225.6 million and €209.1 million will subsequently be up for extension in 2021, 2022 and 2023, respectively. Current and non-current financial liabilities totalling €1,512.3 mil- lion were recognised in the balance sheet at the reporting date. The difference between the total amount and the amounts stated here relates mainly to financing costs to be distributed by means of the effective interest rate method as well as deferred interest and repay- ment obligations that were settled at the beginning of 2020. Investment analysis In financial year 2019, investments continued to be made in mod- ernising and positioning the existing portfolio and amounted to €19.3 million after €20.9 million in the previous year. 5.2 40.7 45.7 8.4 100.0 78.6 615.3 691.8 127.3 1,513.0 Liquidity analysis 1.0 2.9 8.0 11.0 5.3 3.05 3.29 2.37 1.67 2.47 in € thousand 01.01. – 31.12.2019 01.01. – 31.12.2018 Net cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of period CASH AND CASH EQUIVA- LENTS AT END OF PERIOD 170,206 159,202 -19,332 -20,915 -119,122 -128,531 31,752 9,756 116,335 106,579 148,087 116,335 DE VELOPMENT OF FINANCIAL RESOURCES in € million 170.2 -19.3 -119.1 Cash flow from investing activities 116.3 Net cash flow from operating activity Cash and cash equivalents at the beginning of the period 148.1 Cash flow from financing activities Cash and cash equivalents at the end of the period 12 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Economic review At-equity investments declined by €19.5 million from €531.0 million to €511.5 million. This decrease is attributed to the difference between the share in the earnings (€4.4 million) and losses for the financial year (€23.9 million). €8.3 million increase in the redemption entitlements for third-party shareholders. The market values of swaps impacted equity posi- tively, adding €0.4 million. Current and non-current liabilities declining on the whole Current liabilities have risen by €57.5 million from €53.6 million to €111.1 million due to a €61.8 million loan that will mature at the end of 2020 and was in the final stages of negotiations for long-term refinancing when the consolidated financial statements were being prepared. Non-current liabilities fell from €1,983.2 million to €1,846.0 million, which constitutes a decline of €137.3 million, owing to the reversal of deferred tax liabilities (€-73.9 million), the reallocation of the loan maturing in December 2020 to current liabilities (€-61.8 million) as well as the balance from scheduled repayments and the raising of new long-term loans (€-10.0 million). Equity (including third-party interests) At €2,601.5 million as at the end of the reporting year, equity (includ- ing third-party interests) was up €28.1 million on the previous year (€2,573.4 million). The increase in the year under review was mainly due to the difference between the consolidated profit of €112.1 mil- lion and the dividend paid in June 2019 of €92.7 million as well as the EPRA net asset value virtually unchanged Net asset value (NAV) stood at €2,613.4 million or €42.30 per share as at 31 December 2019, compared with €2,667.5 million or €43.17 per share in the previous year. Net asset value per share was therefore down by €0.87 (-2.0%) year-on-year. EPR A NE T A SSE T VALUE in € million /per share in € 2,332.6 2,135.2 2,668.4 2,667.5 2,613.4 43.24 43.19 43.17 42.30 39.58 2015 2016 2017 2018 2019 EPR A NAV Equity Derivative financial instruments measured at fair value 1 Equity excluding derivative financial instruments Deferred taxes on investment properties and derivative financial instruments 1 Goodwill as a result of deferred taxes EPRA NAV Number of no-par-value shares issued as at the reporting date 31.12.2019 31.12.2018 in € thousand per share in € in € thousand per share in € 2,249,573 33,726 2,283,299 383,818 -53,727 2,613,390 36.41 0.55 36.96 6.21 -0.87 42.30 2,229,748 34,563 2,264,311 456,915 -53,727 2,667,499 36.09 0.56 36.65 7.39 -0.87 43.17 61,783,594 61,783,594 1 Including the share attributable to equity-accounted joint ventures and associates 14 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Risk report The protective measures taken to stem the spread of the virus, such as the temporary closure of shops or limits on the number of visitors, are having a direct impact on our tenants’ revenues and have already led to the first insolvencies and applications for protective shielding measures from our tenants (see “Report on events after the report- ing date”). On the procurement side, this may also lead to disruptions in the supply and logistics chain for our tenants and thus to declines in their sales. Should these risks result in an increase in the finan- cial pressure being placed on bricks-and-mortar retail and our ten- ants, this will impact the severity and likelihood of occurrence of our business-specific risks and thus affect the success of our business (see also “Risk report”). Comparison with the previous year’s forecast In comparison with our forecast for the previous year, we have met our expectations for sales revenues at €225.9 million (forecast: €222 million to €226 million), earnings before interest and tax (EBIT) at €197.5 million (forecast: €194 million to €198 million) and FFO at €149.6 million or €2.42 per share (forecast: €148 million to €151 mil- lion or €2.40 to €2.44 per share). Operating earnings before tax (EBT excluding measurement gains / losses) amounted to €163.1 million, slightly above our forecast of €159 –€162 million. Expected results of operations in 2020 Uncertainties for the economy and the consumer climate have increased considerably due to the outbreak of the coronavirus pan- demic. An assessment of the effects of the pandemic and the result- ing forecast for the 2020 financial year is not possible at the pres- ent time and depends, among other things, on the duration and extent of the pandemic, further official restrictions and also legis- lation and support measures. However, we expect revenue, EBIT, EBT (excluding measurement gains / losses) and FFO to be below the 2019 figures. Dividend policy The effects of the continuing spread and unforeseeable duration of the coronavirus pandemic on the financial year 2020 cannot be quantified at the moment. As a precaution to secure and further strengthen the Company’s liquidity, the Executive Board has there- fore decided to propose to the Annual General Meeting that the unap- propriated surplus remaining following the transfer to the other retained earnings is carried forward and the dividend payment for the 2019 financial year is suspended. We also intend to maintain our dividend policy geared towards continuity following the stabilisation of this extraordinary situation. RISK REPORT PRINCIPLES GOVERNING THE RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL SYSTEM Deutsche EuroShop’s strategy is geared towards maintaining and sustainably increasing shareholders’ assets and generating sustain- ably high surplus liquidity from leasing real estate, thereby enabling the distribution of an appropriate and sustainable dividend. The focus of the risk management system is therefore on monitoring compli- ance with this strategy and, building on this, on the identification and assessment of risks and opportunities as well as the fundamental decision on how to manage these risks. Risk management ensures that risks are identified at an early stage and can then be evaluated, communicated promptly and mitigated. Monitoring and manage- ment of the risks identified form the focal point of the internal con- trol system, which at Group level is essentially the responsibility of the Executive Board. The internal control system is an integral part of the risk management system. Within the framework of its legal mandate for auditing the annual financial statements, the auditor checks whether the early warning system for risks is suitable for detecting at an early stage any risks or developments that might endanger the Company. The risk analysis, as a continuous process, promptly identifies, evaluates and communicates the factors that may jeopardise the achievement of business targets. The process also includes man- agement and control of the risks identified. Risk analysis Under existing service contracts, the Executive Board of Deutsche EuroShop AG is continuously briefed about the business perfor- mance of the shopping centers and the corresponding property companies. Financial statements and financial control reports are submitted on a quarterly basis for each shopping center, with medium- term corporate plans submitted annually. The Executive Board regularly reviews and analyses these reports, using the following information in particular to assess the level of risk: 1. Portfolio properties • Trend in amounts outstanding • Trend in occupancy rates • Retail sales trend in the shopping centers • Variance against projected income from the properties • Observance of financial covenants in loan agreements 16 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Risk report EVALUATION OF THE OVERALL RISK POSITION The overall risk situation is presented in the following matrix. The potential scale of losses is calculated on the basis of the impact for the financial year following the reporting year and is based on the plans drawn up before the outbreak of the coronavirus pandemic. In comparison with the previous year, the overall risk situation is no different in this analysis. The factors that could influence the likeli- hood of occurrence and severity of the individual risks as well as the evaluation of the overall risk position due to the spread of the coro- navirus cannot be quantified at the moment. Depending on how the pandemic progresses, the individual risks and the overall risk posi- tion will be reviewed and regularly re-evaluated. However, we expect that individual risks will increase in terms of the amount of losses and /or likelihood of occurrence. On the basis of the monitoring system described, Deutsche Euro- Shop AG has taken appropriate steps to identify developments that could jeopardise its continued existence at an early stage and to counteract them. The Executive Board has performed a wide range of scenario-based simulations in order to evaluate the potential effects of the coronavirus pandemic on the Company’s continued existence. In this context, the impact on the liquidity of the Group and the compliance with credit covenants has also been reviewed. The law passed in Germany on 27 March 2020 to mitigate the con- sequences of the COVID-19 pandemic has also been considered. This restricts the termination of tenancy agreements in the event of non-payment of rent between 1 April 2020 and 30 June 2020 where this is due to the impact of the coronavirus pandemic. The Executive Board is accordingly not aware of any risks that could jeopardise the continued existence of the Company. RISK MATRIX S E S S O L F O T N U O M A h g i h m u i d e m w o l n o i l l i Valuation risk PRESENTATION OF MATERIAL INDIVIDUAL RISKS m 5 € > Valuation and cost risks Currency risk n o i l l i Market and sector risks Rental risk m 5 € – 1 n o i l l i m 1 € o t p u Risk of rent loss Interest rate change and financing risks Legal risk Personnel risk IT risk Risk of damage low 0% – 25% medium 25% – 50% high >50% LIKELIHOOD OF OCCURRENCE Coronavirus pandemic The coronavirus pandemic will have an impact on the individual risks described below with respect to the amount of losses and the likeli- hood of occurrence. As the extent of the pandemic cannot be quanti- fied at the moment, no changes will be made to the individual risks. However, we expect that individual risks will increase in terms of the amount of losses and /or likelihood of occurrence. For further details, please also see our statements on “Report on events after the reporting date” as well as our “Outlook”. Valuation risk The value of a property is essentially determined by its capitalised earnings value, which in turn depends on factors such as the level of annual rental income, the management costs and the investment needs, the underlying location risk, the general condition of the prop- erty, the evolution of capital market interest rates and, in particu- lar, the demand for shopping center properties. The appreciation of property values is also impacted by various macroeconomic and regional factors as well as by factors specific to those properties, which are for the most part unforeseeable and beyond the control of the Company. The factors described are taken into account in the annual market valuations of our portfolio properties by independ- ent appraisers. Changes in value are recognised in the income state- ment of the consolidated financial statements in accordance with the requirements of IAS 40 and may thus increase the volatility of con- solidated profit. In addition, the market valuations of our portfolio properties may also affect compliance with loan conditions on exist- ing financing arrangements (e. g. compliance with debt ratios) as well as the terms of new financing and refinancing agreements. 18 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Risk report Rental risk In particular, the long-term success of the Deutsche EuroShop AG business model depends on lease renewals for retail space and the generation of stable and /or growing rental income in addition to low vacancy rates. Due to the medium-term and long-term renting of retail space, Deutsche EuroShop AG is not as reliant on short-term economic developments as companies in other sectors are. How- ever, given retail commerce’s greater dependency on the state of the economy, we cannot rule out the possibility of a change in economic conditions impacting Deutsche EuroShop AG’s business. Economic fluctuations in addition to structural changes in the retail market affect demand for floor space, rent prices and contractual conditions. Thus, there is the risk that floor space is not rented or is rented at inadequate prices or is rented under excessively unfavour- able conditions, for example with respect to lease terms or service charge apportionments. Low contributions to revenues from leasing and /or rising vacancy rates are also possible. As a result, income would turn out to be less than budgeted, and distributions to shareholders might have to be reduced. If the rental income for a property company is no longer sufficient to meet its interest and repayment obligations, this could lead to the loss of the entire property. Our reaction to this risk is to transfer leasing management to pro- fessional market leaders in asset management as well as to closely monitor the market with continuous and timely reporting on regular or foreseeable unscheduled leasing. In addition, we enforce a pref- erence for medium-term and long-term leasing contracts involving high minimum rent price agreements. Risk of rent loss Deteriorating performance and credit ratings among tenants, which may also be triggered by serious external political or economic shocks, may lead to defaults on leases and other financial burdens, with the risk of default on leases comprising the rent payments in their entirety, allocable ancillary costs and potential legal and rein- statement costs. Insolvency on the part of tenants, especially anchor tenants or shop chains, can moreover lead to temporary increases in vacancy rates. Risk is minimised by carefully selecting tenants, regularly analys- ing their sales growth and amounts outstanding as well as adopting reletting measures early in the event of negative developments. As a rule, tenants also put up commensurate security deposits, which are able to offset some of the financial burden in the event of default. The requisite writedowns are recognised on the balance sheet in individual cases. These amounted to €1.7 million in financial year 2019 (previous year: €1.0 million). Depending on how the economy fares and in view of the clear structural change in bricks-and- mortar retail, an increase in write-downs in the current financial year cannot be ruled out. Cost risk The complexity of the applicable court decisions and changes thereto could lead to corrections and objections in relation to ancillary costs, which in turn could lead to limits being enforced on passing the burden on to tenants and /or to subsequent reimbursements to same. Besides financial losses, this could also affect tenant satis- faction. Continuous examination of ancillary cost invoicing based on current legislation minimises this risk. New changes in the law may also mean that additional costs cannot legally and /or econom- ically be passed on entirely to tenants as ancillary costs in future. The focus at present is on the real property tax reform. Here, it is currently impossible to perform an evaluation based on the current state of the legislative proceedings. Expenditure on maintenance and investment projects can turn out higher than budgeted on the basis of our past experience. Differ- ences may also materialise owing to external damage or loss, inac- curate assessment of maintenance requirements or deficiencies that are not identified or are identified too late. We minimise risks from cost overruns in current investment projects and maintenance measures by taking cost models for all identifiable risks into account in our calculations as a precautionary measure at the planning stage. In addition, more large-scale construction contracts are normally only awarded on a fixed-price basis to general contractors with strong credit ratings. During the building phase, professional project management is assured by the compa- nies we commission. However, it is impossible to completely avoid cost overruns in individual cases. 2 0 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Opportunity report Legal risk The concept for our business model is based on the current legal situation, administrative opinion and court decisions, all of which may, however, change at any time. The Company is not currently aware of any legal risks that could have a major impact on its assets or results of operations. Personnel risk Given the small number of employees of Deutsche EuroShop AG, the Company is dependent on individual persons in key positions. The departure of these key staff would lead to a loss of expertise, and the recruitment and induction of new replacement personnel could temporarily impair day-to-day business. This kind of impairment is kept to a minimum by means of representation policies and the documentation of material work processes. IT risk Deutsche EuroShop AG’s information system is based on a cen- trally managed network solution. Corrective and preventive mainte- nance of the system is carried out by an external service provider. A detailed access policy ensures that staff and external service provid- ers are granted access exclusively to systems they require for their work. A virus protection concept and permanent monitoring of data traffic with respect to hidden and dangerous content are designed to protect against external attacks. All data relevant to operations is backed up daily by remote backup and also regularly on multiple storage media. In the event of a hardware or software failure in our system, all data can be reproduced at short notice. OPPORTUNITY REPORT Deutsche EuroShop AG forms part of a retail market undergoing dynamic structural transformation. While bricks-and-mortar retail is currently facing challenges from strong growth in online retail, and many transformation processes are being initiated more actively, the strict boundaries between the online and offline shopping world continue to disappear. There is a clear trend towards purely online retailers increasingly opening shops and branch networks or gaining access to bricks-and-mortar retail chains and their branch net- work through acquisitions or joint ventures. This development is based on the expectation from customers that they will be able to buy all products online or offline depending on the situation. A large number of retailers have realised that they can offer a considerably better customer service and achieve greater sales growth with an omnichannel sales approach. In addition, bricks-and-mortar spaces are also increasingly lending themselves to being used as local logis- tics hubs for fast and cost-efficient delivery services. Thanks to the positioning of our shopping centers at first-rate loca- tions, broad sector diversification within the centers, the increas- ing link-up between the shopping centers and online retail via Digital Mall, and their conceptional adaptation with an emphasis on leisure, customer experience and meeting point aspects, and the increas- ing importance of shop space to online retail, we see opportunities for success during these structural changes, including in periods of stagnation. In the area of financing, the continued environment of low interest rates affords good opportunities for concluding refinancing and new financing agreements on more favourable terms, which would positively impact EBT and FFO. There are also growth opportunities for Deutsche EuroShop AG, in keeping with its clearly defined, selective investment strategy, through the acquisition of further shopping centers or stakes therein, which would positively impact the results of operations. Further external growth can also enhance the diversification effect in the Company’s holdings portfolio. Due to the great degree of flexibility in the implementation of our acquisition and holdings structures, our good reputation with banks and as a reliable partner in the real estate market, the Company is well positioned to be able to continue to operate in the transactions market in such a way as to exploit opportunities going forward. 2 2 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Remuneration report REMUNERATION OF THE EXECUTIVE BOARD 2019 The remuneration of the Executive Board amounted to €1,352 thou- sand, which broke down as follows: in € thousand Contributions made Fixed remuneration Ancillary benefits Total One-year variable remuneration 1 Multi-year variable Remuneration LTI 2018 Total Pension expense TOTAL REMUNERATION Wilhelm Wellner CEO Joined: 01.02.2015 Olaf Borkers Member of the Management Board Joined: 01.10.2005 2019 2018 2019 (min) 2019 (max) 2019 2018 2019 (min) 2019 (max) 282 25 307 404 0 404 143 854 267 21 288 387 0 387 71 746 0 0 423 ( 2) 199 15 214 284 0 284 0 498 186 21 207 279 0 279 0 486 0 0 284 ( 2) 1 Due to the preliminary nature of the remuneration calculations at the time the annual financial statements were drawn up, the payments may vary slightly with respect to the figures in the remuneration report for the following year. 2 no maximum In 2019, the Executive Board was in receipt of payments totalling €1,240 thousand: in € thousand in T€ Income Fixed remuneration Ancillary benefits Total One-year variable Remuneration 1 Multi-year variable remuneration LTI 2018 Total Pension expense TOTAL REMUNERATION Wilhelm Wellner CEO Joined: 01.02.2015 Olaf Borkers Member of the Management Board Joined: 01.10.2005 2019 2018 2019 (min) 2019 (max) 2019 2018 2019 (min) 2019 (max) 282 25 307 390 0 390 50 747 267 21 288 363 0 363 25 676 0 0 401 ( 2) 199 15 214 279 0 279 0 493 186 21 207 279 0 279 0 486 0 0 279 ( 2) 1 Due to the preliminary nature of the remuneration calculations at the time the annual financial statements were drawn up, the payments may vary slightly with respect to the figures in the remuneration report for the following year. 2 no maximum Total 2019 521 688 143 1,352 Total 2019 521 669 50 1,240 2 4 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Declaration on corporate governance In addition, the Executive Board was authorised by a resolution of the Annual General Meeting held on 28 June 2018 to acquire treas- ury shares in the Company constituting up to 10% of the share capital available on the entry into force of or – if this is lower – on exercise of the authorisation by 27 June 2023. As at 31 December 2019, no use had been made of this authorisation. A change-of-control arrangement has been agreed with two employ- ees. Under this arrangement, if and insofar as the Company informs them that they will no longer be employed in their current positions, these employees will have a special right of termination with a notice period of one month up to the end of the quarter, which will be valid for twelve months from the date the change of control takes effect. A change of control arises if Deutsche EuroShop AG merges with another company, if a public takeover bid has been made under the German Wertpapiererwerbs- und Übernahmegesetz (WpÜG – Secu- rities Acquisition and Takeover Act) and accepted by a majority of shareholders, if the Company is integrated into a new group of com- panies or if the Company goes private and is delisted. In the event of such termination of the employment relationship, these employees will receive a one-time payment amounting to three months’ gross salary multiplied by the number of years that they have worked for the Company, but limited to a maximum of 24 months’ gross salary. Deutsche EuroShop Group does not currently have any other com- pensation agreements with members of the Executive Board or other employees for the event of a change of control. The material provisions governing Deutsche EuroShop AG, which include a change of control clause, primarily relate to bilateral credit facilities and various loan agreements. In the event of a takeover, the relevant lenders are entitled to terminate the facility and where applicable demand immediate repayment. A takeover is defined as a third party taking control of Deutsche EuroShop AG; the takeover may also be made by a group acting jointly. DECLARATION ON CORPORATE GOVERNANCE (SECTION 289F HGB) The declaration on corporate governance, in conformity with sec- tion 3.10 of the Deutscher Corporate Governance Kodex (German Corporate Governance Code) and section 289f of the Handelsgesetz- buch (HGB – German Commercial Code) has been published on the Deutsche EuroShop website: www.deutsche-euroshop.de / Home-enInvestor-Relations / Corporate-Governance / Declaration of Conformity REPORTING ON THE SEPARATE FINANCIAL STATEMENTS OF DEUTSCHE EUROSHOP AG As the Group managing company, Deutsche EuroShop AG is respon- sible for corporate strategy, portfolio and risk management, financ- ing and communication. As the holding company, the economic development of Deutsche EuroShop AG depends primarily on the business development of the Group’s operating companies. Deutsche EuroShop AG also directly participates in and shares the opportuni- ties and risks of the Group companies. Therefore, please also refer to the reporting on the Group in sections “Macroeconomic and Sector- Specific Conditions”, “Risk report” and “Opportunity report” in this combined management report. The annual financial statements of Deutsche EuroShop AG were pre- pared in accordance with the rules of the German Commercial Code (HGB), in compliance with the German Stock Corporation Act (AktG), while those of the Group were drawn up according to IFRS rules. 2 6 Deutsche EuroShop / Financial Repor t 2019

COMBINED MANAGEMENT REPORT / Reporting on the separate financial statements of Deutsche EuroShop AG FINANCIAL POSITION OF DEUTSCHE EUROSHOP AG (HGB) FORECAST FOR DEUTSCHE EUROSHOP AG (HGB) in € thousand Net profit Cash distributions on investees recognised in equity Measurement of investments not affecting liquidity Addition /reversal for deferred income taxes 1. Free cash flow from operating 01.01. – 31.12.2019 01.01. – 31.12.2018 69,129 48,558 50,509 39,962 6,618 0 It is not possible at present to produce a forecast for Deutsche Euro- Shop AG (HGB) due to the uncertainty surrounding the potential impact of the coronavirus pandemic on the investees of Deutsche EuroShop AG. However, we expect a decline in investment income and significantly lower cash distributions from ongoing leasing activ- ity at our investees. -12,846 4,942 Hamburg, 25 March 2020 /2 April 2020 activities 113,410 93,462 2. Outflows for new investments 3. Inflows from equity Inflows /outflows from bank loans 4. Inflows /outflows from financing -100 0 -1,753 0 0 -1,730 activities -1,753 -1,730 5. Other cash changes in the balance sheet -258 951 6. Dividend for the previous year -92,675 -89,586 Liquidity at the start of the year 50,403 47,307 Cash changes in liquidity (1st to 6th subtotal) Liquidity at the end of the year 18,624 69,027 3,096 50,403 Free cash flow from operating activities increased from €93.5 million in 2018 to €113.4 million in the year under review (+21.3%) and was €1.4 million under budget. The reasons behind the slight deviation from the budget were reductions in distributions at individual inves- tees to finance ongoing and future investments. For the past financial year, there was a return on the equity paid in (including equity from the convertible bond) amounting to €1,369.0 million of 8.3% com- pared with 6.8% in the previous year. Free cash flow per share rose from €1.51 to €1.84. The outflows for new investments included the newly founded DES Beteiligungs GmbH & Co. KG as part of the corporate restructuring of the Group. Outflows from financing activities were the result of scheduled repayments of long-term bank loans. Taking into account the cash changes in net working capital (€-0.3 million) and the dividend paid in June 2019 of €92.7 million, liquidity ended the year at €69.0 million. Forward-looking statements This combined management report contains forward-looking state- ments based on estimates of future developments by the Executive Board. The statements and forecasts represent estimates based on all of the information available at the current time. If the assumptions on which these statements and forecasts are based do not material- ise, the actual results may differ from those currently being forecast. Rounding and rates of change Percentages and figures stated in this report may be subject to rounding differences. The rates of change are based on economic considerations: improvements are indicated by a plus (+); deteriora- tion by a minus (-). 2 8 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Consolidated balance sheet CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Assets in € thousand ASSETS Non-current assets Intangible assets Property, plant and equipment Investment properties Investments accounted for using the equity method Other financial assets Non-current assets Current assets Trade receivables Other current assets Cash and cash equivalents Current assets Note 31.12.2019 31.12.2018 7. 7. 8. 9. 10. 11. 12. 53,752 424 3,822,786 511,493 0 4,388,455 7,417 14,646 148,087 170,150 53,736 213 3,891,700 531,044 31 4,476,724 6,643 10,526 116,335 133,504 TOTAL ASSETS 4,558,605 4,610,228 3 0 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Consolidated income statement CONSOLIDATED INCOME STATEMENT in € thousand Revenue Property operating costs Property management costs Net operating income (NOI) Other operating income Other operating expenses Earnings before interest and taxes (EBIT) Share in the profit or loss of associated companies and joint ventures accounted for using the equity method Interest expense Profit / loss attributable to limited partners Other financial income and expenditure Interest income Financial gains or losses Measurement gains / losses Earnings before tax (EBT) Income taxes CONSOLIDATED PROFIT Earnings per share (€), undiluted and diluted Note 01.01. – 31.12.2019 01.01. – 31.12.2018 19. 20. 21. 22. 23. 9., 24. 17. 25. 26. 27. 225,941 -13,616 -10,813 201,512 1,915 -5,958 197,469 4,345 -49,256 -18,443 0 2,745 -60,609 -94,188 42,672 69,419 112,091 1.81 225,047 -11,690 -10,493 202,864 1,828 -5,557 199,135 27,602 -52,726 -18,448 2,256 30 -41,286 -55,715 102,134 -22,739 79,395 1.29 3 2 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Consolidated statement of changes in equity CONSOLIDATED STATEMENT OF CHANGES IN EQUITY in € thousand 01.01.2018 Total profit Number of shares outstanding Note Issued capital Capital reserves Other retained earnings Statutory reserve Cash flow hedge reserve Total 61,783,594 61,784 1,217,560 984,675 2,000 -28,643 2,237,376 Dividend payments 13. 31.12.2018 01.01.2019 Total profit Dividend payments 13. 0 0 0 0 79,395 -89,586 0 0 2,563 0 81,958 -89,586 61,783,594 61,784 1,217,560 974,484 2,000 -26,080 2,229,748 61,783,594 61,784 1,217,560 974,484 2,000 -26,080 2,229,748 0 0 0 0 112,091 -92,675 0 0 409 0 112,500 -92,675 31.12.2019 61,783,594 61,784 1,217,560 993,900 2,000 -25,671 2,249,573 3 4 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR FINANCIAL YEAR 2019 PRINCIPLES UNDERLYING THE CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL DISCLOSURES The Group parent company is Deutsche EuroShop AG, Hamburg, Germany. The Company’s registered office is at Heegbarg 36, 22391 Hamburg, Germany. The Company is entered in the Hamburg Commercial Register (HRB 91799). Deutsche EuroShop AG focuses on acquiring, managing, using and selling investments of all kinds, and in particular investments in retail properties. The consolidated financial statements of Deutsche EuroShop AG have been prepared in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), including the interpretations of the Inter- national Financial Reporting Interpretations Committee (IFRIC) and the supplementary provisions of German commercial law required to be applied under section 315e (1) of the Handels gesetzbuch (HGB – German Commercial Code). All IFRSs and IFRIC interpre- tations endorsed by the European Commission and required to be applied as at 31 December 2019 have been applied. The Exec- utive Board prepared the consolidated financial statements as at 31 December 2019 on 25 March 2020 and forwarded them to the Supervisory Board for examination and approval. In view of recent developments and events relating to the spread of the coronavirus pandemic, “37. Events after the reporting date” in this notes and the “Report on events after the reporting date”, “Outlook”, “Risk report” and “Forecast for Deutsche EuroShop AG (HGB)” in the combined management report were forwarded again on 2 April 2020 to the Supervisory Board for review and approval. In addition to the consolidated balance sheet, consolidated income statement and consolidated statement of comprehensive income, the consolidated financial statements comprise the consolidated state- ment of changes in equity, the consolidated cash flow statement and the notes to the consolidated financial statements. Amounts are mainly presented in thousands of €. The preparation of the consolidated financial statements neces- sitates the use of estimates and assumptions. These affect the reported amounts of assets, liabilities and contingent liabilities as at the reporting date, as well as the recognition of income and expenses during the reporting period. The actual amounts can differ from these estimates. Expected cash flows and the discount factor in particular are critical parameters for the measurement of invest- ment properties (for more information, see the notes to section “8. Investment Properties”). A detailed list of the companies included in the consolidated financial statements forms part of the notes. The annual financial statements of the consolidated companies were prepared on 31 December 2019, the reporting date of the consoli- dated financial statements. 3 6 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes Shareholdings The list of shareholdings as required by section 313 (2) HGB forms part of the notes to the consolidated financial statements. The list of shareholdings also includes a conclusive list of all subsidiaries that meet the conditions of section 264b HGB and have exercised the option of exemption from specific provisions regarding the prepa- ration, auditing and disclosure of the annual financial statements or management report. Joint ventures and associates are measured using the equity method. The cost of acquiring the investment is recognised here in income at an amount increased or reduced by the changes in equity corresponding to the equity interest of Deutsche EuroShop AG. Intragroup transactions are eliminated as part of the consolidation of intercompany balances, income and expenses. 4. NEW ACCOUNTING STANDARDS The following new or amended standards and interpretations rel- evant for the business activities of the Group are required to be applied for the first time to the financial years ending on 31 Decem- ber 2019: Impact on the net assets, financial position and results of operations or cash flow of Deutsche EuroShop AG The impact of IFRS 16 on the Group is explained at the foot of this table. 3. CONSOLIDATION METHODS Under the purchase method, the cost is eliminated against the parent company’s interest in the re-valued equity of the subsidiaries at the date of acquisition or initial consolidation. Any remaining excess of identified net assets acquired over cost of acquisition is recognised as goodwill in intangible assets. Any negative differences are recog- nised in income following a reassessment. Amendments / standard Date applied (EU) Amendments IFRS 16 Leases 01.01.2019 The core requirement of IFRS 16 is that all leases and their associated contractual rights and obligations are to be recognised in the lessee’s balance sheet as a general principle. The lessee is required to account for lease liabilities for all future lease payments. At the same time, lessees must capitalise the right to use the underlying asset, gener- ally at the present value of the future lease payments plus any directly attributable costs. During the term of the lease, the lease liability is upheld financially on a similar basis to the provisions of IAS 17 for finance leases, while the right of use is amortised according to sched- ule, which generally leads to higher expenses at the beginning of a lease. In the case of lessors, meanwhile, the provisions of the new standard are similar to the previous provisions of IAS 17. IFRIC 23 Un - certainty over Income Tax Treatments Annual Improve- ments to IFRSs – 2015 –2018 Cycle 01.01.2019 IFRIC 23 provides guidance on the accounting for current and deferred tax liabilities and assets where there are uncertainties regarding the income tax treatment. No material impact 01.01.2019 Clarifications of numerous published standards No material impact IFRS 16 – Leases The new IFRS 16 replaces IAS 17 and essentially stipulates that les- sees must recognise the assets and liabilities arising from their leases in their balance sheets. Lessees are thus required to rec- ognise lease liabilities for future lease payment obligations in their balance sheets for all leases. At the same time, lessees must cap- italise the right to use the underlying asset, generally at the pres- ent value of the future lease payments plus any directly attributa- ble costs. During the term of the lease, the lease liability is carried in accordance with the effective interest rate method, while the right- of-use asset is depreciated according to schedule, which leads to higher expenses at the beginning of a lease. The Group’s material lease obligations result from a leasehold agree- ment for a plot of land used as an extension to the parking space in one of our shopping centers, the rental of office space at Heeg- barg 36 in Hamburg, and the leasing of cars. As part of the first-time adoption of IFRS 16, right-of-use assets with corresponding lease 3 8 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes 5. CURRENCY TRANSLATION The Group currency is the euro (€). The companies located outside the eurozone that are included in the consolidated financial statements are treated as legally inde- pendent, but economically dependent, integrated companies. The reporting currency of these companies is therefore different from the functional currency (€). Under IAS 21, annual financial state- ments prepared in foreign currencies are translated using the func- tional currency method, with the result that the balance sheet is to be translated as if the transactions had arisen for the Group itself, as the local currency of the integrated companies is deemed to be a for- eign currency for these companies themselves. Monetary values are therefore translated at the closing rate and non-monetary items at the rate that applied at the time of initial rec- ognition. Non-monetary items to be reported at fair value are trans- lated at the closing rate. Items in the consolidated income statement are translated at average rates for the year or, in the event of strong fluctuations, using the rate that applied on the date of the transac- tion. Any translation differences arising if the translation rates of the balance sheet and consolidated income statement differ are recog- nised in profit or loss. Translation was based on the following exchange rates: €1 = 31.12.2019 31.12.2018 Closing rate Average rate Closing rate Average rate Hungarian forint (HUF) 330.52 325.35 321.51 318.87 Polish zloty (PLN) Czech koruna (CZK) 4.26 25.41 4.30 25.73 4.30 25.73 4.26 25.54 6. SIGNIFICANT ACCOUNTING POLICIES AND VALUATION METHODS Revenue and Expense Recognition Revenue from leasing the investment properties is recognised on a straight-line basis over the term of the lease. Tenant incentives granted are distributed on a straight-line basis over the lease term. The portion of tenant incentives granted but not yet distributed as at the reporting date is reported under current assets. When passing on operating costs the Group acts as an agent for the service. The income from recharging is therefore netted with the corresponding expenses in the income statement. Other revenue and other operating income are recognised once the relevant service has been rendered or once the risk has passed to the customer. Operating expenses are recognised once the service has been utilised or at the time when they are booked through profit and loss. Interest income and expense are accrued. Determination of fair values The Group regularly reviews the determination of fair values for financial and non-financial assets and liabilities. It also conducts a regular assessment of significant, non-observable input factors and carries out valuation adjustments. When determining the fair value of an asset or liability, the Group uses observable market data wher- ever possible. Based on the input factors used in the valuation techniques, the fair values are categorised into different levels of the fair value hierarchy in accordance with IFRS 13: Level 1: Fair values determined using quoted prices in active markets. Level 2: Fair values determined using valuation methods for which the input factors that are relevant for the fair value are based on directly or indirectly observable market data. Level 3: Fair values determined using valuation methods for which the input factors that are relevant for the fair value are based on unobservable market data. In the case of assets or liabilities that are recognised at fair value on a regular basis, it is determined based on a reassessment at the end of the financial year whether reclassifications between the hierar- chical levels occurred. In 2019, as in the previous financial year no reclassifications between the hierarchical levels occurred. Intangible assets Intangible assets include acquired software and software licenses of Deutsche EuroShop AG and goodwill. Software additions are measured at cost. These are amortised at 33% using the straight-line method over the expected useful life of three years. The method of depreciation and the depreciation period are reviewed annually at the end of each financial year. Goodwill within the context of a company takeover arose as a pos- itive difference between the fair value of the assets, liabilities and contingent liabilities at the time of acquisition as well as the deferred taxes of the acquired company and the consideration paid for it by the Group. Goodwill is not subject to amortisation. 4 0 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes Receivables and other current assets Receivables and other current assets are recognised at amortised cost less write-downs. The Group applies the simplified approach permitted under IFRS 9 and measures the write-down on the basis of the credit losses expected over the life of the asset. Receivables are written off if they become uncollectable. Right to redeem of limited partners The distinction between equity and liabilities under international accounting standards is set out in IAS 32 Financial Instruments: Presentation. In accordance with this standard, the equity interests of third-party shareholders in commercial partnerships are reclas- sified as liabilities due to the shareholders’ potential right of redemp- tion. According to sections 131 et seq. HGB, shareholders in com- mercial partnerships have an ordinary legal right of termination of six months with effect from the end of the financial year, which the shareholders’ agreement can define from a long-term perspective, but cannot exclude. As a result of this stipulation, a liability rather than equity was recognised in the balance sheet. This liability must be measured at the repayment amount. Financial liabilities Liabilities to banks / bank loans and overdrafts are reported at amortised cost. Discounts are deducted, which under IFRS 9 must be amortised over the term of the loan agreement and recognised annually as an expense. Trade payables Trade payables are recognised at their repayment amount. Other liabilities Other liabilities are recognised at amortised cost. Cash and cash equivalents Cash and cash equivalents include cash and bank balances (terms of up to three months) at their principal amounts. Derivative financial instruments Derivatives that qualify for hedge accounting in accordance with IFRS 9 are used to hedge interest rate risks. These are fixed-rate swaps to limit the interest rate risk of variable interest rate loans, which have terms extending to 2027. The interest rate hedges are recognised at fair value (recurring fair value measurement) under “Other assets” or “Other liabilities”. Changes are recognised directly in equity, provided that the conditions of the underlying and hedge transaction are identical. The effectiveness of the hedging meas- ures is verified regularly using the degree of harmony between the contract terms for the hedged item and the hedge (“Critical Term Match”). If the effectiveness between the hedged item and the hedge does not exist, the hedge is measured as a derivative at fair value in profit or loss. Present value is calculated based on discounted cash flows using current market interest rates. The final maturities of the interest rate hedges and loan agreements are identical. Investments Accounted for using the Equity Method Investments in associates and joint ventures are initially recognised at cost in the balance sheet and adjusted by changes in the Group’s share of the equity of the associate / joint ventures after the date of acquisition. At every reporting date, the Group reviews whether there are indications that the shares need to be impaired in relation to the amortised carrying amounts. Deferred taxes In accordance with IAS 12, deferred taxes are recognised for all dif- ferences between the tax accounts and the IFRS balance sheet, using the currently enacted tax rate. At present, deferred taxes are primar- ily formed on the differences between the IFRS carrying amounts of the properties and their carrying amounts for tax purposes. A uni- form corporate tax rate of 15% plus the solidarity surcharge of 5.5% was used for German companies, and in some cases a rate of 16.45% for trade tax. For Hungarian taxes, a tax rate of 9% was taken, while for Polish taxes the rate was 19%, for Czech taxes it was 19% and for Austrian taxes it was 25%. In accordance with IAS 12.74, deferred tax assets on existing loss carryforwards are offset against deferred tax liabilities. Other provisions Under IFRS, other provisions may only be recognised if a present obligation exists towards a third party and payment is more likely than not. Non-current provisions are discounted. 4 2 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes JLL applied the equated yield model in order to arrive at the dis- count and capitalisation interest rates. The capitalisation interest rate was derived for each property individually from initial rates of return from comparable transactions. At the same time, such deter- minants of value as inflation and changes in rent and costs were implicitly taken into account in the capitalisation interest rate. The risk profile specific to each property was also adjusted by refer- ence to the relevant individual indicators. Examples of such indica- tors include the quality of the property’s location and position, mar- ket trends and developments in the competitive environment. JLL likewise derived the discount interest rates from comparable trans- actions, albeit making adjustments for projected increases in rent and costs, since these had been explicitly shown in the relevant cash flow. JLL applied the same methods in valuing domestic and foreign real properties. The following overview shows the key assumptions used by JLL to determine the market values: Valuation parameters in % Rate of rent increases Cost ratio Discount rate Capitalisation interest rate 31.12.2019 31.12.2018 1.24 10.42 5.92 5.11 1.33 10.20 5.90 5.07 A 25 bp change in a material parameter (sensitivity analysis) of real estate appraisals would have the following pre-tax impact on meas- urement gains / losses (including the share attributable to at-equity consolidated companies): Sensitivity analysis – Valuation parameters Rate of rent increases Basis Change in parameter million in % + 0.25 percentage points 160.2 4.0 in € 1.24 - 0.25 percentage points -128.2 -3.2 Over the forecast period, rents were assumed to increase on average over the long term at 1.24% (previous year: 1.33%). On average, man- agement and administrative costs at 10.42% (previous year: 10.2%) were deducted from the forecast rents. This resulted in an average net income of 89.58% (previous year: 89.8%). Actual management and administrative costs amounted to 10.8% of rental income in the year under review (previous year: 9.9%). The appraisal showed that, for financial year 2019, the real property portfolio had an initial yield before deduction of transaction costs of 5.43% compared with the previous year’s 5.32%, and an initial rate of return net of transaction costs (net initial yield) of 5.12%, the figure for the previous year hav- ing been 5.01%. Outstanding tenant incentives granted and still to be distributed over the term of the rental agreements amounting to €3,935 thousand were deducted from the appraisal value. These are reported under other assets. The following shows details and disclosures in accordance with IFRS 13 for the hierarchical levels of the fair values of the Group’s investment properties as at 31 December 2019: IFRS 13 hierarchy levels in € thousand Investment properties Level 1 Level 2 Level 3 0 0 3,822,786 The properties are secured by mortgages. There are land charges in the amount of €1,512,347 thousand (previous year: €1,522,393 thou- sand). The rental income of the properties valued in accordance with IAS 40 was €225,941 thousand (previous year: €225,047 thousand). Directly associated operating expenses were €24,429 thousand (pre- vious year: €22,183 thousand). 9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD + 0.25 percentage points -12.1 -0.3 in € thousand 2019 2018 Cost ratio 10.42 - 0.25 percentage points 11.6 0.3 Carrying amount at 1 January 531,044 526,728 + 0.25 percentage points -73.9 -1.9 Discount rate 5.92 - 0.25 percentage points 78.7 2.0 Capitalisation interest rate + 0.25 percentage points -121.4 -3.0 5.11 - 0.25 percentage points 130.8 3.3 Distributions and capital repayments received Share of profit / loss CARRYING AMOUNT AT 31 DECEMBER -23,896 4,345 -23,286 27,602 511,493 531,044 Joint ventures in which Deutsche EuroShop AG has a majority of the voting rights together with third parties are included in the consol- idated financial statements in accordance with the equity method. They are important for the Group as a whole and operate shopping centers. 4 4 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes Under the equity method, the joint ventures changed as follows in the period under review: in € thousand Equity method valuation as at 01.01.2019 Share of profit / loss of which EBT (excl. measurement gains / losses) of which measurement gains / losses Deposits / withdrawals EQUITY METHOD VALUATION AS AT 31.12.2019 Allee-Center Magdeburg KG, Hamburg Immobilien- kommandit- gesellschaft FEZ Harburg, Hamburg Stadt-Galerie Passau KG, Hamburg Saarpark Center Neunkirchen KG, Hamburg EKZ Eins Errichtungs- und Betriebs Ges. m.b.H. & Co OG, Vienna Einkaufs- Center Arkaden Pécs KG, Hamburg 127,644 3,024 6,842 -3,818 -6,424 78,087 -816 4,475 -5,291 -3,543 138,656 -1,036 6,442 -7,478 -4,567 81,149 -5,489 4,984 -10,473 -2,949 69,197 4,504 5,113 -609 -4,100 36,311 4,158 2,901 1,814 -2,313 124,244 73,728 133,053 72,711 69,601 38,156 10. TRADE RECEIVABLES 11. OTHER CURRENT ASSETS in € thousand Trade receivables as at 31.12. Write-downs as at 01.01. Utilisation Change in write-downs for expected losses Write-downs as at 31.12. 2019 9,901 -1,721 455 -1,218 -2,484 7,417 -1,649 323 -395 -1,721 6,643 Other receivables from tenants mainly comprise receivables for heating and ancillary costs. Other current assets primarily consist of cash security deposits received as collateral, prepaid marketing costs for centers, accrued rental incentives and tax receivables. 2018 in € thousand 31.12.2019 31.12.2018 8,364 Other receivables from tenants Other current assets 3,453 11,193 14,646 3,029 7,497 10,526 Receivables arose primarily from rental invoices and services for which charges are passed on. These were predominantly paid at the time the consolidated financial statements were prepared. The trade receivables recognised at the reporting date are largely protected by means of guarantees, cash security deposits and letters of comfort. Receivables in € thousand Trade receivables Other assets (PREVIOUS YEAR’S FIGURES) Total Up to 1 year Over 1 year 7,417 (6,643) 14,646 (10,526) 22,063 (17,169) 7,417 (6,643) 14,646 (10,526) 22,063 (17,169) 0 (0) 0 (0) 0 (0) Trade receivables (after value adjustments) and other assets were, as in the previous year, not overdue as at the reporting date. 4 6 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes 14 of the 20 loan agreements currently contain arrangements regarding covenants. There are a total of 22 different conditions on different debt service cover ratios (DSCR), interest cover ratios (ICR), changes in rental income, the equity ratio and loan-to-value ratios (LTV). The loan conditions have not been breached thus far and will not, according to current plans, be breached in future either. Other liabilities to tenants mainly comprise liabilities for heating and ancillary costs as well as prepaid rent. Liabilities in € thousand Financial liabilities Non-current and current financial liabilities arose from the following changes affecting liquidity and not affecting liquidity: Trade payables in € thousand 2019 2018 Carrying amount at 1 January 1,522,393 1,546,672 Changes affecting liquidity -10,526 -24,279 Changes not affecting liquidity Change in carrying amount under the effective interest rate method 480 0 CARRYING AMOUNT AT 31 DECEMBER 1,512,347 1,522,393 Tax liabilities Other liabilities (PREVIOUS YEAR’S FIGURES) Total Current Non-current 1,512,347 (1,522,393) 78,974 (26,080) 1,433,373 (1,496,313) 5,805 (3,543) 1,401 (2,384) 5,805 (3,543) 1,401 (2,384) 0 (0) 0 (0) 50,699 (48,457) 16,836 (14,160) 33,863 (34,297) 1,570,252 (1,576,777) 103,016 (46,167) 1,467,236 (1,530,610) 15. OTHER NON-CURRENT AND CURRENT FINANCIAL LIABILITIES Deferred tax assets and liabilities are the result of tax effects of temporary differences and tax loss carryforwards: 16. DEFERRED TAX LIABILITIES 31.12.2019 31.12.2018 31.12.2019 31.12.2018 Current Non- current Current 0 33,546 in € thousand Interest rate swaps Rental deposits Other liabilities to tenants Value added tax Debtors with credit balances Lease liabilities Other Non- current 33,059 0 0 0 0 502 302 3,286 8,979 1,870 1,334 82 1,285 0 3,309 6,210 2,379 792 0 in € thousand Investment properties Investments accounted for using the equity method Other liabilities Interest swaps (not recognised in profit or loss) 0 0 0 0 0 751 1,470 Other 33,863 16,836 34,297 14,160 In connection with borrowing, interest rate hedges (interest rate swaps) were concluded to hedge against higher capital market inter- est rates. Their present value totalled €33,059 thousand as at the reporting date (previous year: €33,546 thousand). Corporation tax loss carryforwards Deferred taxes before netting Deferred tax assets 0 0 7,388 1,132 0 Deferred tax liabilities 328,564 Deferred tax assets Deferred tax liabilities 0 374,343 58,711 0 0 0 0 7,466 1,132 53 86,950 0 0 0 8,520 387,275 8,651 461,293 Balance -8,520 -8,520 -8,651 -8,651 DEFERRED TAXES AFTER NETTING 0 378,755 0 452,642 In measuring deferred taxes, the tax rates applicable in accordance with IAS 12 are those valid under current legislation at the date at which the temporary differences will probably reverse. 4 8 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes NOTES TO THE CONSOLIDATED INCOME STATEMENT Ancillary costs which cannot be fully allocated are essentially oper- ating costs which cannot be completely passed on to tenants as well as heating and ancillary costs in arrears for preceding years. 19. REVENUE 21. PROPERTY MANAGEMENT COSTS in € thousand Minimum rental income Turnover rent Other of which directly attributable rental income in accordance with IAS 40 Investment Properties 2019 223,305 2,157 479 225,941 225,047 2018 in € thousand 2019 2018 222,024 2,227 796 Center management /agency agreement costs of which directly attributable operating expenditure in accordance with IAS 40 Investment Properties 10,813 10,493 10,813 10,493 225,941 225,047 22. OTHER OPERATING INCOME Other revenue relates primarily to settlement payments made by former tenants as well as compensation for use. in € thousand The rental income reported here derives from operating leases and relates to rental income from investment properties with long-term leases. The future minimum leasing payments from non-terminable rental agreements classified as investment properties have the fol- lowing maturities: Income from the reversal of provisions Exchange rate gains Other 2019 529 66 1,320 1,915 2018 595 50 1,183 1,828 Other operating income primarily consists of receivables already value-adjusted in previous years. 23. OTHER OPERATING EXPENSES 2019 2,055 1,177 552 312 287 228 187 169 991 5,958 2018 1,905 1,084 494 312 274 187 165 58 1,078 5,557 in € thousand Maturity within 1 year Maturity from 1 year to 5 years Maturity after 5 years 2019 214,984 534,810 161,189 2018 214,457 571,499 165,825 910,983 951,781 20. PROPERTY OPERATING COSTS in € thousand Personnel expenses Legal, consulting and audit expenses Marketing costs Supervisory Board compensation in € thousand Operating costs that cannot be passed on Center marketing Maintenance and repairs Write-downs of rent receivables Real property tax Other 2019 5,599 3,137 1,658 1,674 573 975 2018 Appraisal costs Exchange rate losses Fees and contributions Write-downs Other 4,099 3,511 1,746 1,034 587 713 of which directly attributable operating expenditure in accordance with IAS 40 Investment Properties 13,616 11,690 13,616 11,690 Legal, consulting and audit expenses include €312 thousand in expenses for the auditing of Group companies (previous year: €303 thousand). Personnel expenses include social security con- tributions and expenses for pensions and other benefits amount- ing to €227 thousand (previous year: €150 thousand), of which €143 thousand (previous year: €71 thousand) is attributable to pen- sion expenses. 5 0 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes SEGMENT REPORTING Segment reporting by Deutsche EuroShop AG is carried out on the basis of internal reports that are used by the Executive Board to manage the Group. Internal reports distinguish between shop- ping centers in Germany (“domestic”) and other European countries (“abroad”). As the Group’s main decision-making body, the Deutsche Euro- Shop AG Executive Board first and foremost assesses the perfor- mance of the segments based on revenue, EBIT and EBT excluding measurement gains / losses. The measurement principles for seg- ment reporting correspond to those of the Group. Breakdown by geographical segment In order to assess the contribution of the segments to the individ- ual performance indicators as well as to the Group’s success, the income, expenditure, assets and liabilities of the joint ventures are included in internal reporting in proportion to the Group’s share therein. Similarly, for subsidiaries in which the Group is not the sole shareholder, income, expenditure, assets and liabilities are likewise only consolidated proportionately according to the corresponding Group share. This results in the segments being divided as follows: Total Reconciliation 01.01 – 31.12.2019 225,941 197,469 4,345 2,745 -49,256 163,131 31.12.2019 3,822,786 19,324 53,727 511,493 170,599 4,558,605 2,309,032 in € thousand Revenue EBIT Profit / losses of joint ventures and associates Interest income Interest expense EBT (EXCL. MEASUREMENT GAINS / LOSSES) Domestic 196,556 172,556 0 9 -41,983 130,932 Abroad 43,635 40,774 0 7 -7,133 33,647 240,191 213,330 0 16 -49,116 164,579 -14,250 -15,861 4,345 2,729 -140 -1,448 Investment properties 3,246,262 743,828 3,990,090 -167,304 Additions and recognised construction measures for investment properties Goodwill Investments accounted for using the equity method Other segment assets SEGMENT ASSETS SEGMENT LIABILITIES 19,659 2,228 21,887 0 0 69,690 3,315,952 1,242,809 0 0 29,872 773,700 334,008 0 0 99,562 4,089,652 1,576,817 -2,563 53,727 511,493 71,037 468,953 732,215 5 2 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes OTHER DISCLOSURES 28. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Measurement category in accordance with IFRS 9 Amount stated in line with IFRS 9 Carrying amounts 31.12.2019 Amortised cost Fair value recognised in income Fair value recognised in equity Fair value 31.12.2019 in € thousand Financial assets Non-current financial assets 3 FVTPL Trade receivables Other assets Cash and cash equivalents Financial liabilities Financial liabilities 2 Right to redeem of limited partners Trade payables Other liabilities Interest rate hedges not recognised in profit or loss 2 AC AC AC FLAC FLAC FLAC FLAC n. a. 0 7,417 7,080 7,417 7,080 148,087 148,087 1,512,347 351,905 5,805 12,813 33,059 1,512,347 351,905 5,805 12,813 0 0 7,417 7,080 148,087 1,584,376 351,905 5,805 12,813 33,059 33,059 Measurement category in accordance with IFRS 9 Amount stated in line with IFRS 9 Carrying amounts 31.12.2018 Amortised cost Fair value recognised in income Fair value recognised in equity Fair value 31.12.2018 in € thousand Financial assets Non-current financial assets 3 FVTPL Trade receivables Other assets Cash and cash equivalents Financial liabilities Financial liabilities 2 Right to redeem of limited partners Trade payables Other liabilities Interest rate hedges not recognised in profit or loss 2 AC AC AC FLAC FLAC FLAC FLAC n. a. 1 Corresponds to level 1 of the IFRS 7 fair value hierarchy 2 Corresponds to level 2 of the IFRS 7 fair value hierarchy 3 Corresponds to level 3 of the IFRS 7 fair value hierarchy 31 6,643 6,351 6,643 6,351 116,335 116,335 31 1,522,393 343,648 3,543 9,547 1,522,393 343,648 3,543 9,547 33,546 31 6,643 6,351 116,335 1,601,010 343,648 3,543 9,547 33,546 33,546 Measurement categories in accordance with IFRS 9: Financial assets measured at amortised cost (AC), at fair value through other comprehensive income (FVOCI), Financial liabilities measured at amortised cost (FLAC), at fair value through profit and loss (FVTPL) 5 4 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes Interest rate risk A sensitivity analysis was implemented to determine the effect of potential interest rate changes. Based on the financial assets and liabilities subject to interest rate risk as at the reporting date, this shows the effect of a change on the Group’s equity. As at the report- ing date, interest rate risks existed only for credit borrowed and the associated interest rate hedges. An increase in the market inter- est rate of 100 basis points would lead to an increase in equity (before taxes) of €9,483 thousand (previous year: €8,846 thou- sand). The vast majority of loan liabilities have fixed interest terms. As at the reporting date, loans totalling €109,400 thousand (previ- ous year: €119,900 thousand) were hedged using derivative finan- cial instruments. 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. Cash and cash equivalents comprise cash and cash equivalents that may be converted into cash at any time. As in the previous year, the financial resources fund as at the reporting date corresponded to the cash and cash equivalents (see section 12. Cash and cash equivalents). 30. OTHER FINANCIAL OBLIGATIONS There are other financial obligations of €71.3 million arising from service contracts. There are financial obligations of €5.4 million which will arise in 2020 in connection with investment measures in our shopping centers. 31. NUMBER OF EMPLOYEES An average of five (previous year: five) staff members were employed in the Group during the financial year. 31.12.2019 31.12.2018 2,601,478 2,573,396 32. AUDITOR’S FEES 57.1% 55.8% 1,364,260 1,406,058 in € thousand Equity Equity ratio (%) Net financial debt Equity is reported here including the compensation claims by limited partners. Net financial debt is determined from the financial liabilities as at the reporting date less cash and cash equivalents. 29. NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT The cash flow statement has been prepared in accordance with IAS 7 and is broken down into operating cash flow, cash flow from operat- ing activities, cash flow from investing activities, and cash flow from financing activities. Cash flow from operating activities is derived from consolidated profit using the indirect method. Net cash flow from operating activi- ties, cash flow from investment activities and cash flow from financ- ing activities are calculated using the direct method. The total fees invoiced by the auditor for the consolidated financial statements for financial year 2019 amounted to €312 thousand (pre- vious year: €308 thousand). of which €307 thousand (previous year: €303 thousand) related to auditing services. Other audit-related ser- vices were also provided by the auditor in the amount of €5 thousand (previous year: €5 thousand). 33. DECLARATION OF CONFORMITY WITH THE GERMAN CORPORATE GOVERNANCE CODE The Declaration of Conformity with the German Corporate Govern- ance Code required by section 161 of the Aktiengesetz (AktG – Ger- man Public Companies Act) has been issued jointly by the Super- visory Board and the Executive Board, and has been made available to shareholders on the Deutsche Euroshop website under Investor Relations > Corporate Governance > Declaration of Conformity: https://www.deutsche-euroshop.de/Investor-Relations/ Corporate-Governance/Entsprechenserklaerung 5 6 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes 36. THE SUPERVISORY BOARD AND EXECUTIVE BOARD Dr. Anja Disput, Frankfurt (since 12.06.2019) Attorney-at-law, partner at Curtis, Mallet-Prevost, Colt & Mosle LLP, Frankfurt Supervisory Board The Supervisory Board of Deutsche EuroShop AG is composed of nine members. As at 31 December 2019, the following members with membership of other statutory supervisory boards and membership of comparable supervisory bodies of business enterprises in Ger- many or other countries made up the Supervisory Board: Reiner Strecker, Wuppertal, Chairman Personally liable partner, Vorwerk & Co. KG, Wuppertal • akf Bank GmbH & Co. KG, Wuppertal Karin Dohm, Kronberg im Taunus, Deputy Chairwoman Global Head of Government & Regulatory Affairs, Deutsche Bank AG, Frankfurt • Deutsche Bank Europe GmbH, Frankfurt (Chair) • Deutsche Bank Luxembourg S.A., Luxembourg • Ceconomy AG, Düsseldorf Thomas Armbrust, Reinbek (until 12.06.2019) Member of Management, CURA Vermögensverwaltung G.m.b.H., Hamburg • ECE Projektmanagement G.m.b.H. & Co. KG, Hamburg (Chair) • TransConnect Unternehmensberatungs- und Beteiligungs AG, Munich (Chair) • Platinum AG, Hamburg (Chair) • Paramount Group Inc., New York, USA • Verwaltungsgesellschaft Otto mbH, Hamburg Beate Bell, Cologne (until 12.06.2019) Managing partner, immoAdvice GmbH, Cologne • Hochtief AG, Essen Manuela Better, Munich (until 12.06.2019) Member of the Board of Management, Deka Bank Deutsche Girozentrale, Frankfurt and Berlin • Deka Investment GmbH, Frankfurt (Deputy Chair) • Deka Vermögensmanagement GmbH, Frankfurt (Deputy Chair) • Deka Immobilien GmbH, Frankfurt (Dep. Chair) • Deka Immobilien Investment GmbH, Frankfurt (Dep. Chair) • S Broker AG & Co. KG, Wiesbaden (Deputy Chair) • S Broker Management AG, Wiesbaden (Deputy Chair) • WestInvest Gesellschaft für Investmentfonds mbH, Düsseldorf (Dep. Chair) • DekaBank Deutsche Girozentrale Luxembourg S.A., Luxembourg Henning Eggers, Halstenbek (since 12.06.2019) Member of Management, CURA Vermögensverwaltung G.m.b.H., Hamburg • TransConnect Unternehmensberatungs- und Beteiligungs AG, Munich • Platinum AG, Hamburg • ECE Projektmanagement G.m.b.H. & Co. KG (since 01.07.2019) Dr. Henning Kreke, Hagen / Westphalia Managing partner, Jörn Kreke Holding KG, Hagen / Westphalia and Kreke Immobilien KG, Hagen / Westphalia • Douglas GmbH, Düsseldorf (Chair) • Thalia Bücher GmbH, Hagen / Westphalia • Encavis AG, Hamburg • Axxum Holding GmbH, Wuppertal • Noventic GmbH, Hamburg • Perma-tec GmbH & Co. KG, Euerdorf • Ferdinand Bilstein GmbH & Co. KG, Ennepetal • Püschmann GmbH & Co. KG, Wuppertal • Con-Pro Industrie-Service GmbH & Co. KG, Peine • Noventic GmbH, Hamburg Claudia Plath, Hamburg (since 12.06.2019) Managing Director Finance, Verwaltung ECE Projektmanagement G.m.b.H., Hamburg • Ceconomy AG, Düsseldorf • Hochbahn AG, Hamburg (until 23.08.2019) • MEC Metro-ECE Centermanagement GmbH & Co. KG, Dusseldorf Alexander Otto, Hamburg CEO, Verwaltung ECE Projektmanagement G.m.b.H., Hamburg • SITE Centres Corp. Inc. (previously DDR Corp. Inc.), Beechwood, USA • Peek & Cloppenburg KG, Düsseldorf • Aliansce Sonae Shopping Centres S.A. (previously: Sonae Sierra Brasil S.A.), São Paulo, Brazil (until 06.08.2019) • Verwaltungsgesellschaft Otto mbH, Hamburg Klaus Striebich, Besigheim Managing Director, RaRe Advise Klaus Striebich • MEC Metro-ECE Centermanagement GmbH & Co. KG, Düsseldorf (Chair) (until 31.03.2019) • Unternehmensgruppe Dr. Eckert GmbH, Berlin • Klier Hairgroup GmbH, Wolfsburg • Sinn GmbH, Hagen • The Food Chain Investor Holding SE, Hamburg 5 8 Deutsche EuroShop / Financial Repor t 2019

CONSOLIDATED FINANCIAL STATEMENTS / Notes SHAREHOLDINGS List of shareholdings in accordance with section 313 (2) of the Handelsgesetzbuch (HGB – German Commercial Code) as at 31 December 2019: Company name and domicile Fully consolidated companies: DES Verwaltung GmbH, Hamburg DES Management GmbH, Hamburg DES Shoppingcenter GmbH & Co. KG, Hamburg 1 DES Beteiligungs GmbH & Co. KG, Hamburg 1 A10 Center Wildau GmbH, Hamburg Main-Taunus-Zentrum KG, Hamburg Forum Wetzlar KG, Hamburg Objekt City-Point Kassel GmbH & Co. KG, Hamburg 1 Stadtgalerie Hameln GmbH & Co. KG, Hamburg 1 Altmarkt-Galerie Dresden GmbH & Co. KG, Hamburg 1 Einkaufs-Center Galeria Baltycka G.m.b.H. & Co. KG, Hamburg Einkaufs-Center Galeria Baltycka G.m.b.H. & Co. KG, Sp. kom., Warsaw, Poland CASPIA Investments Sp. z o.o., Warsaw, Poland City-Point Beteiligungs GmbH, Hamburg Olympia Brno s.r.o., Prague, Czech Republic Joint ventures: Allee-Center Magdeburg KG, Hamburg Stadt-Galerie Passau KG, Hamburg CAK City Arkaden Klagenfurt KG, Hamburg Saarpark Center Neunkirchen KG, Hamburg EKZ Eins Errichtungs- und Betriebs Ges.m.b.H. & Co OG, Vienna, Austria Immobilienkommanditgesellschaft FEZ Harburg, Hamburg Einkaufs-Center Arkaden Pécs KG, Hamburg Associates: EKZ Vier Errichtungs- und Betriebs Ges.m.b.H., Vienna, Austria 1 For these companies, exemption from the disclosure obligation in accordance with section 264b HGB was made use of. Interest in equity 100% 100% 100% 100% 100% 52.01% 65% 100% 100% 100% 74% 99.99% 100% 100% 100% 50% 75% 50% 50% 50% 50% 50% 50% 6 0 Deutsche EuroShop / Financial Repor t 2019

INDEPENDENT AUDITOR’S REPORT BASIS FOR OPINION 1. MEASUREMENT OF INVESTMENT PROPERTIES We conducted our audit of the consolidated financial statements and combined management report in accordance with section 317 HGB and the EU Audit Regulation (No 537/2014; hereinafter “EU AR”), tak- ing into account the German generally accepted standards for the auditing of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Our responsibility pursuant to these provi- sions and principles is described in more detail in the “RESPONSIBIL- ITY OF THE AUDITOR FOR THE AUDIT OF THE CONSOLIDATED FINAN- CIAL STATEMENTS AND COMBINED MANAGEMENT REPORT” section of our auditor’s report. We are independent from the Group compa- nies in line with the provisions of European and German commercial and professional law and have fulfilled our other professional duties under German law in line with these requirements. Furthermore, in accordance with article 10 (2) point f) EU AR, we hereby declare that we have not provided any prohibited non-audit services pursuant to article 5 (1) EU AR. We believe that the audit evi- dence we have obtained is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements and combined management report. KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS Key audit matters are those matters that, in our professional judge- ment, were of most significant impact in our audit of the consolidated financial statements for the financial year from 1. Januar 2019 to 31. Dezember 2019. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, but we do not provide a separate opin- ion on these matters. We identified the following as key audit matters 1. Measurement of investment properties 2. Recognition and measurement of deferred taxes Matter Deutsche EuroShop AG reports investment properties totalling €3.822,8 million in its consolidated financial statements as at 31. Dezember 2019 and holds a participating interest in further mate- rial investment properties through its stakes in joint ventures and associates. The shopping center properties held as investment prop- erty are measured at fair value in accordance with IAS 40. In finan- cial year 2019, expenses from this measurement of €88,6 million was recognised in the income statement. In addition, the profit / loss of equity-accounted joint ventures and associates includes a measure- ment loss of €25,9 million. The respective fair value measurements in accordance with IFRS 13 are determined on the basis of the discounted cash flow method by one of the external appraisers appointed by Deutsche EuroShop AG. They are level 3 measurements pursuant to IFRS 13 that are based on input factors not materially observable on the market. Forecasts about future cash flows from rental income and management, main- tenance and administrative costs as well as the derivation of the cap- italisation interest rate involve significant decisions based on per- sonal judgement and estimates that have a material effect on the consolidated financial statements. The disclosures provided by Deutsche EuroShop AG on the measure- ment of investment properties are included in the sections “6. Signifi- cant accounting policies and valuation methods / Investment proper- ties” and “8. Investment properties” of the notes to the consolidated financial statements. Auditor’s review As part of our audit, we obtained evidence of the externally appointed appraiser’s competence and independence. We examined the appraisals in respect of their appropriateness, consistency, correct implementation of measurement methods and validity of input factors (leased space and rental income) by means of samples. In addition, we acknowledged the projected values and parameters (rental income, future vacancy rates, management, maintenance and administrative costs and interest rates) used in the valuation and are satisfied with the suitability of the decisions based on personal judgement and estimates. In performing the audit, we consulted internal specialists in the field of real estate valuation. 6 2 Deutsche EuroShop / Financial Repor t 2019

INDEPENDENT AUDITOR’S REPORT be prepared in accordance with the applicable provisions of German law, and to enable sufficient and appropriate evidence to be provided for the statements in the combined management report. As part of our audit, we exercise professional judgement and main- tain professional scepticism. We also: The supervisory board is responsible for monitoring the Group’s accounting process for the preparation of the consolidated financial statements and combined management report. RESPONSIBILITY OF THE AUDITOR FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND COMBINED MANAGEMENT REPORT Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from mate- rial misstatements, whether due to fraud or error, and whether the combined management report as a whole provides a suitable under- standing of the Group’s position, is consistent with the consolidated financial statements and the findings of the audit in all material respects, complies with the provisions of German law and suitably presents the opportunities and risks of future development, and to provide an auditor’s report containing our opinion on the consoli- dated financial statements and combined management report. Reasonable assurance is a high level of assurance, but is not a guar- antee that an audit performed in accordance with section 317 HGB and the EU AR, taking into account the German generally accepted standards for the auditing of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW), will always detect a material misstatement. These can arise from fraud or error and are consid- ered material if, individually or in the aggregate, they could reason- ably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and com- bined management report. • identify and assess the risks of material misstatement of the consolidated financial statements and combined management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opin- ion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrep- resentations, or the override of internal control; • obtain an understanding of internal control relevant to the audit of the consolidated financial statements and precautions and meas- ures relevant to the audit of the combined management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of these systems; • evaluate the appropriateness of accounting policies used and the reasonableness of estimates and related disclosures made by the legal representatives; • conclude on the appropriateness of the legal representatives’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw atten- tion in the auditor’s report to the related disclosures in the con- solidated financial statements and combined management report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern; • evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that gives a true and fair view of the net assets, financial position and results of operations of the Group in compliance with IFRS as adopted by the EU and the supplementary provisions of German law required to be applied under section 315e (1) HGB; 6 4 Deutsche EuroShop / Financial Repor t 2019

EPR A REPORTING EPRA REPORTING The Brussels-based European Public Real Estate Association (EPRA) has set itself the goal of improving the transparency and compara- bility of reports published by listed companies in Europe. To this end, EPRA has defined key figures in its Best Practice Recommendations. Deutsche EuroShop supports this goal as a member of EPRA. The currently valid version 1 of the EPRA Best Practice Recommen- dations was used to determine the key figures. OVERVIE W OF EPR A KE Y FIGURES EPRA earnings EPRA NAV EPRA NNNAV EPRA net initial yield (EPRA NIY) EPRA “topped-up” net initial yield EPRA cost ratio (incl. direct vacancy costs) EPRA cost ratio (excl. direct vacancy costs) EPRA vacancy rate 31.12.2019 31.12.2018 Change in € thousand per share in € in € thousand per share in € 158,260 2,613,390 2,139,458 2.56 42.30 34.63 147,388 2,667,499 2,114,355 2.39 43.17 34.22 + / - in € thousand 10,872 -54,109 25,103 31.12.2019 31.12.2018 Change in % 5.1 5.1 13.4 13.1 2.4 in % 5.0 5.1 12.3 12.1 1.4 in % 7.4 -2.0 1.2 in % points 0.1 0.0 1.1 1.0 1.0 1 The currently valid version of the EPRA Best Practice Recommendations can be found at http://www.epra.com/finance/financial-reporting/guidelines 6 6 Deutsche EuroShop / Financial Repor t 2019

EPR A REPORTING EPRA NET ASSET VALUE EPRA NAV measures the net asset value of a company based on a business model with a long-term focus. To do so, Group equity is adjusted for assets and liabilities that are unlikely to be realised if held over the long term. EPR A NAV 31.12.2019 31.12.2018 Change in € thousand in € thousand per share in € in € thousand in € thousand per share in € per share in € Equity 2,249,573 36.41 2,229,748 36.09 0.32 in % 0.9 Derivative financial instruments measured at fair value Derivative financial instruments measured at fair value (at equity) Derivative financial instruments measured at fair value 1 Equity excluding derivative financial instruments Deferred taxes on invest- ment properties and deriva- tive financial instruments 1 Goodwill as a result of deferred taxes EPRA NAV Number of no-par-value shares issued as at the reporting date 33,059 667 33,546 1,017 33,726 0.55 34,563 0.56 -0.01 -1.8 2,283,299 36.96 2,264,311 36.65 0.31 0.8 383,818 6.21 456,915 7.39 -1.18 -16.0 -53,727 2,613,390 -0.87 42.30 -53,727 2,667,499 -0.87 43.17 0.00 – -0.87 -2.0 61,783,594 61,783,594 1 Including the share attributable to equity-accounted joint ventures and associates EPR A NAV/EPR A NNNAV per share in € / in € million 43.24 43.19 43.17 42.30 39.58 31.40 34.00 34.30 34.22 34.63 2015 2016 2017 2018 2019 2,135.2 1,693.7 2,332.6 1,833.9 2,668.4 2,119.5 2,667.5 2,114.4 2,613.4 2,139.5 in € million EPRA NAV EPRA NNNAV 6 8 Deutsche EuroShop / Financial Repor t 2019

EPR A REPORTING EPRA NET INITIAL YIELD AND EPRA “TOPPED-UP” NET INITIAL YIELD EPRA net initial yield is calculated on the basis of annualised rental income as at the reporting date less the costs that are not alloca- ble to tenants, calculated in proportion to the market value of the property including ancillary acquisition costs. EPRA “topped-up” net initial yield also takes into account granted rental incentives in the determination of annualised rental income. EPR A NE T INITIAL YIELD (EPR A NIY ) AND EPR A “TOPPED -UP” NE T INITIAL YIELD Market value investment properties Market value investment properties (at equity) Market value investment properties Less expanded space 1 Less ancillary acquisition costs 1 Market value investment properties (gross) Annualised rental income 1 Non-allocable property expenses 1 Annualised net rental income Rental incentives and other rental adjustments 1 Annualised “topped-up” net rental income EPRA net initial yield (EPRA NIY) EPRA “topped-up” net initial yield 31.12.2019 31.12.2018 in € thousand in € thousand in € thousand in € thousand 3,822,786 654,206 3,891,700 676,960 4,476,992 -5,560 255,240 4,726,672 263,249 -22,041 241,208 742 241,950 5.1% 5.1% 4,568,660 -7,160 262,271 4,823,771 264,415 -21,521 242,894 1,088 243,982 5.0% 5.1% 1 Including the share attributable to equity-accounted joint ventures and associates 7 0 Deutsche EuroShop / Financial Repor t 2019

EPR A REPORTING INVESTMENTS IN REAL ESTATE ASSETS Investments in the Group’s real estate assets amounted to: EPR A INVESTMENTS IN RE AL ESTATE A SSE TS in € thousand Acquisitions Developments, new construction Portfolio properties (like-for-like portfolio) Other EPRA investments in real estate assets 31.12.2019 31.12.2018 Group at-equity Total Group at-equity 0 0 19,324 0 0 0 3,099 0 0 0 22,423 0 0 1,336 19,526 0 0 0 3,608 0 Total 0 1,336 23,134 0 19,324 3,099 22,423 20,862 3,608 24,470 Development investments in the previous year were made as part of the planned expansion of the Galeria Baltycka. The increase in investments in portfolio properties was the result of the “At-your-service” and “Mail Beautification” investment programmes started in financial year 2018 and continued during this financial year, which will further boost the attractiveness of the shopping centers. 7 2 Deutsche EuroShop / Financial Repor t 2019

REPORT OF THE SUPER VISORY BOARD was seen as strategically important for the positioning of our cen- tre portfolio. A corresponding digitisation programme (“Digital Mall”) and related investments were discussed and put into action. Regu- lar discussions were conducted with the Executive Board regard- ing trends on the capital, credit, real estate and retail markets and the effects of these on the Company’s strategy. The Executive Board and Supervisory Board examined various investment and refinancing options. We received regular reports detailing the turnover trends and payment patterns of our tenants and banks’ lending policies. The Executive Board and Supervisory Board also held regular discus- sions on how the Company was valued by the stock market and its participants and made peer group comparisons. This year we also dealt intensively with the expected requirements of the new Corpo- rate Governance Code and ARUG II (the Act Implementing the Second Shareholder Rights Directive), discussed the effects on our company with the Executive Board and monitored the preparatory measures taken by the Executive Board to implement ARUG II. The Chairman of the Supervisory Board and the Executive Commit- tee of the Supervisory Board also discussed other topical issues with the Executive Board as required. Transactions requiring the approval of the Supervisory Board or a committee were discussed and decided on at the scheduled meetings. Where required, circu- lar resolutions were passed in writing by the Supervisory Board and the responsible committee for transactions of the Executive Board requiring approval. All resolutions in the reporting period were passed unanimously. To avoid conflicts of interest, any parties affected abstained from voting. Some meetings were held without the Executive Board present. MEETINGS Four ordinary Supervisory Board meetings were held during finan- cial year 2019. No member of the Supervisory Board attended only half or fewer than half of the meetings of the Supervisory Board and the committees on which they serve during the reporting year. You can find the individual attendance record of members of the Super- visory Board in meetings of the Supervisory Board and its commit- tees in the following overview: Meetings of the Supervisory Board Member since Appointment ends Reiner Strecker (Chairman) Karin Dohm (deputy Chairwoman) Thomas Armbrust Beate Bell Manuela Better Dr. Anja Disput 2012 2012 2001 2014 2014 2022 Annual General Meeting 2022 Annual General Meeting 12.06.2019 12.06.2019 12.06.2019 12.06.2019 2024 Annual General Meeting Henning Eggers 12.06.2019 2024 Annual General Meeting Dr. Henning Kreke Alexander Otto Claudia Plath Klaus Striebich Roland Werner 2013 2002 2023 Annual General Meeting 2023 Annual General Meeting 12.06.2019 2024 Annual General Meeting 2012 2015 2022 Annual General Meeting 2020 Annual General Meeting Plenary Meetings Executive Committee Meetings Audit Committee Meetings Audit Committee Conference calls 4/4 3/4 1/1 1/1 1/1 3/3 3/3 4/4 4/4 3/3 4/4 4/4 1/1 1/1 1/1 – – – 1/1 1/1 1/1 – – – 0/0 0/0 – – – – – – – – – – 2/3 3/3 1/1 – – – 2/2 – – – – – Total 89% 89% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% April meeting At the first ordinary meeting held on 25 April 2019, the main focus was the Executive Board’s presentation of the financial, accounting and tax aspects of the 2018 annual financial statements. The auditor also provided an explanation of the results of his audit of the annual financial statements. During the subsequent discussion of the annual financial statements, we again attached great importance this year to the explanations of the Executive Board and those of the auditor concerning the real estate appraisals. We also discussed the Com- pany’s dividend strategy with the Executive Board on the basis of longer-term planning scenarios. The Executive Board reported on the implementation of the restructuring and modernisation concepts for individual centers, as well as on the loans maturing over the next few years and the refinancing that has been arranged in the mean- time. We dealt intensively with the expected legal changes in the environment for our company, including the reforms to land tax and land transfer tax. The focus of discussions was on ARUG II. We dis- cussed the three candidates proposed by the Executive Committee for election at the Annual General Meeting and the selection process at the meeting and approved the Executive Committee’s proposal. Finally, the agenda for the Annual General Meeting was unanimously adopted. 74 Deutsche EuroShop / Financial Repor t 2019

REPORT OF THE SUPER VISORY BOARD FINANCIAL STATEMENTS OF DEUTSCHE EUROSHOP AG AND THE GROUP FOR THE PERIOD ENDING 31 DECEMBER 2019 At the Audit Committee meeting on 30 March 2020 and the extraor- dinary Supervisory Board meeting on 3 April 2020, the Audit Com- mittee and the Supervisory Board respectively examined in detail the annual financial statements of Deutsche EuroShop AG in accordance with German commercial law, and the consolidated financial state- ments in accordance with International Financial Reporting Stand- ards (IFRS), each as at 31 December 2019, as well as the combined management report and Group management report for 2019. The effects of the coronavirus pandemic on the future performance of Deutsche EuroShop AG, as explained in the supplementary report in the combined management report, were also discussed with the Executive Board. The auditor explained to us all matters which he regarded as being of particular significance for his audit of the con- solidated financial statements, doing so in a manner that was easy to follow. The Supervisory Board shares the auditor’s assessment of the importance of these matters for the consolidated financial state- ments. You can find details of these matters in the auditor’s report. The documents relating to the financial statements, the auditor’s reports and the Executive Board’s proposal for the utilisation of the unappropriated surplus were presented to us in good time. The audi- tor appointed by the Annual General Meeting on 12 June 2019 – BDO AG Wirtschaftsprüfungsgesellschaft, Hamburg – had already audited the financial statements and issued an unqualified audit opinion in each case. The auditor also confirmed that the accounting policies, measurement methods and methods of consolidation in the con- solidated financial statements complied with the relevant account- ing provisions. In addition, the auditor determined in the course of its assessment of the risk management system that the Execu- tive Board had undertaken all required measures pursuant to sec- tion 91 (2) AktG to promptly identify risks that could jeopardise the continued existence of the Company. The auditor’s representatives took part in the discussion of the annual financial statements and the consolidated financial state- ments on the occasions of the Audit Committee meeting on 30 March 2020 and the extraordinary Supervisory Board meeting on 3 April 2020 and explained the main findings. The Supervisory Board has come to the conclusion that there are no objections to be raised against the annual financial statements or the audit conducted by the auditor. The combined management report meets statutory requirements in the opinion of the Super- visory Board. The Supervisory Board agrees with the statements in the management report on the further growth of the Company. The Supervisory Board has issued its agreement with the result of the audit of the annual financial statements and approved the annual financial statements of Deutsche EuroShop AG and the consolidated financial statements of the Deutsche EuroShop Group; the annual financial statements are therefore approved. The Supervisory Board also endorsed the Executive Board’s proposal for the appro- priation of profits to carry forward the unappropriated surplus of €34,629 thousand. The Supervisory Board would like to thank the Executive Board and all employees of Deutsche EuroShop AG for their good, reliable work and their consistent commitment in an environment that has become more difficult for our industry. Hamburg, 3 April 2020 Reiner Strecker, Chairman 76 Deutsche EuroShop / Financial Repor t 2019

CORPOR ATE GOVERNANCE SEIZING OPPORTUNITIES AND MAXIMISING VALUE WORKING METHODS OF THE EXECUTIVE AND SUPERVISORY BOARDS In line with our buy and hold strategy, we consistently place greater importance on the quality and yield of our shopping centers than on our portfolio’s rate of growth. We monitor the market continu- ously and act as buyers when an opportunity arises. Rapid decision- making chains and considerable flexibility regarding potential invest- ments and financing structures allow Deutsche EuroShop to react to very wide-ranging competitive situations. At the same time, the Group’s management focuses on optimising the value of the existing portfolio of properties. TAILORED RENT STRUCTURE One key component of the rental model is a tailored rent struc- ture. While individual owners in city centers are often concerned with achieving the highest possible rents for their property (which results in a monostructured retail offering), we ensure an attractive sector mix and long-term optimisation of our rental income through combined costing. Rental partners pay sector-specific and turn over- linked rent that is regularly hedged through indexed minimum rents during the rental period. THE SHOPPING EXPERIENCE CONCEPT We have outsourced center management to an experienced exter- nal partner, Hamburg-based ECE Projektmanagement GmbH & Co. KG (ECE). ECE has been designing, planning, building, letting and manag- ing shopping centers since 1965. The Company is currently the Euro- pean market leader, with around 200 shopping centers under man- agement. We consider professional center management to be the key to the success of a shopping center. In addition to guaranteeing standard opening hours and a consistently friendly, bright, safe and clean shopping environment, the center management can employ unusual displays, promotions and exhibitions to make shopping an experience. The 500,000 to 600,000 people who visit our 21 centers on average every day are fascinated by not only the variety of sectors represented but also by our wide range of thematic exhibitions, cast- ing shows, fashion shows and attractions for children. As a result, the shopping centers become lively market places where there is always something new and spectacular on offer. In addition, we are constantly adding new products and services that are being devel- oped as part of the ongoing integration of bricks-and-mortar retail- ing and online shopping sites, for example Digital Mall, and that fur- ther enhance the shopping experience and level of service for our customers. Some of these include Click & Collect and shop delivery services. The strategic orientation of the Company is coordinated between the Executive Board and the Supervisory Board, and the progress of strategy implementation is discussed at regular intervals. The Executive Board is required to inform the Supervisory Board regu- larly, promptly and in detail of business developments. The Executive and Supervisory Boards examine the Company’s net assets, finan- cial position and results of operations, as well as its risk manage- ment, regularly and in detail. In this context, the formal conditions for implementing an efficient system of managing and monitoring the Company are checked, as is whether the means of super vision are effective. The significant factors affecting the business are determined by the Executive Board, which notifies the Supervisory Board. The committees advise on the development of the portfolio properties, their turnover trends, accounts receivable, occupancy rates, construction measures and liquidity, as well as investment cost trends for our new development projects. The sales trends and payment patterns of tenants are observed in detail so that con- sequences can be drawn from these at an early stage wherever required. New investment opportunities are examined by the Executive Board and, if necessary, presented to the Supervisory Board at regular Supervisory Board meetings. Investment decisions are made by the Executive Board and then submitted to the Supervisory Board for approval within the framework of a decision paper. Moreover, the Executive and Supervisory Boards discuss develop- ments on the capital and credit markets as well as the effects of these not only on the Company’s strategy but also in terms of raising equity and obtaining borrowed capital. The Supervisory Board and its committees also discuss other topical issues with the Executive Board as required. Transactions requiring the approval of the Supervisory Board are discussed and resolved upon at the scheduled meetings. Online retailing, its impact on foot- fall and sales in centers and the countermeasures taken to combine the strategic advantages of our shopping centers with the opportu- nities afforded by e-commerce are becoming increasingly important in reporting to the Executive Board. In addition, legal changes within our Company are discussed between the Executive Board and the Supervisory Board at an early stage and any changes that are poten- tially required to meet legal requirements are prepared. For transactions requiring approval, conference calls are also con- ducted with the Supervisory Board or its committees and circular resolutions are passed in writing. 7 8 Deutsche EuroShop / Financial Repor t 2019

CORPOR ATE GOVERNANCE The German Corporate Governance Code states that a member of the Supervisory Board “is not deemed independent if they have a per- sonal or business relationship with the Company, its governing bod- ies, a controlling shareholder or an associate thereof that could give rise to a material conflict of interest which is more than temporary.” In 2015, the Supervisory Board of Deutsche Euroshop AG stipulated that the materiality criterion does not apply to tenants accounting for less than 1% of Group rental income. This is the case for Roland Werner, Chair of the Management Board of Bijou Brigitte Modische Accessoires AG, a tenant operating a total of some 1,000 shops. 21 of these are in shopping centers of Deutsche Euroshop AG. Klaus Striebich stepped down as Chairman of the Advisory Board of MEC Metro-ECE Centermanagement GmbH & Co. KG on 31 March 2019 and also ceased to be an independent advisor to KG CURA Ver- mögensverwaltung G.m.b.H. & Co. Since then he has been an inde- pendent member of the Supervisory Board. The mandate periods of Beate Bell, Manuela Better and Thomas Armbrust ended at the Annual General Meeting on 12 June 2019. The three members of the Supervisory Board did not stand for re-elec- tion, so the Annual General Meeting elected Dr. Anja Disput, Henning Eggers and Claudia Plath as new members of the Supervisory Board at the suggestion of the Board of Directors. Dr. Anja Disput is an independent member, while Henning Eggers and Claudia Plath are dependent members of the Supervisory Board through their busi- ness relationship with Alexander Otto. Based on its own assessment, the Supervisory Board continues to have an adequate number of independent members. Five of the nine Supervisory Board members are independent. These are Reiner Strecker, Karin Dohm, Dr. Anja Disput, Roland Werner and Klaus Striebich (since 1 April 2019). The length of service on the Supervisory Board ranges from 0.5 to 17.5 years, the average being 5.8 years. Function Chairman Deputy Chairwoman and Financial Expert Last name Reiner Strecker Karin Dohm Klaus Striebich Alexander Otto Dr. Henning Kreke Henning Eggers Dr. Anja Disput Claudia Plath Roland Werner Average: Since 13.07.2012 13.07.2012 13.07.2012 18.06.2002 20.06.2013 12.06.2019 12.06.2019 12.06.2019 18.06.2015 Until the AGM, which will decide on … 2021 2021 2021 2022 2022 2023 2023 2023 2019 AGM in 2022 2022 2022 2023 2023 2024 2024 2024 2020 Membership (years) on the Supervisory Board as of December 2019 7.5 7.5 7.5 17.5 6.5 0.5 0.5 0.5 4.5 5.8 The Supervisory Board assesses its effectiveness and that of its committees (efficiency review) every two years on the basis of a questionnaire. The members of the Supervisory Board have the opportunity to express criticism, make suggestions and propose improvements. The efficiency review has potential implications, which are discussed on the Supervisory Board and, where neces- sary, implemented in the Supervisory Board’s work. The last self- assessment took place in February 2019. The Supervisory Board supervises and advises the Executive Board in its management activities in accordance with the provisions of German company law and its rules of procedure. It appoints mem- bers of the Executive Board, and significant business transacted by the Executive Board is subject to its approval. The Supervisory Board is composed of nine members, who are elected by the Annual Gen- eral Meeting. 8 0 Deutsche EuroShop / Financial Repor t 2019

CORPOR ATE GOVERNANCE Olaf Borkers Born on 10 December 1964 First appointed: 2005 Appointed until: 30 September 2022 Olaf Borkers joined Deutsche EuroShop AG in 2005 as a member of the Executive Board. He is also a Managing Director and Director at various companies in the Deutsche EuroShop Group, and is respon- sible for ESG issues (environmental social governance) on the Exec- utive Board. Together with the Executive Board, the Supervisory Board ensures long-term succession planning. The Supervisory Board devotes particular attention to the deferred end of the terms of office of the two Executive Board members in combination with their respective experience and areas of expertise. Discussions and negotiations for potentially extending terms of office begin at least one year before the end of the current term of office, so that internal and external successors can be appointed. Quota of women The Supervisory Board and the Executive Board took into consider- ation the Act on the Equal Participation of Women and Men in Execu- tive Positions in the Private and Public Sector that entered into force in 2015, and defined corresponding quotas. A quota of women of at least 30% was set for the Supervisory Board and the Executive Board. The Executive Board also set the same target for the man- agement levels below the Executive Board. Given that there are five employees in total, there is only one management level. Since the quota was established in 2015, the target for the nine-member Supervisory Board has been met with three female members. The quota of women on the two-member Executive Board as of 31 December 2019 was 0%. In December 2018, Mr Borkers’ term in office on the Executive Board, which was due to end on 30 September 2019, was extended until 30 September 2022 in view of his performance. Moreover, continuity and experience gained with the business model are important to the Company’s success. The expansion of the Executive Board to three members is neither appropriate nor reasonable due to the low num- ber of employees and to the specifics of a holding company. The quota of women in the first management level below the Exec- utive Board, which consists of two people, was also at 0% on 31 December 2019. SHAREHOLDINGS Executive Board As at 31 December 2019, the Executive Board held a total of 6,500 shares, less than 1% of Deutsche EuroShop AG’s share capital. Supervisory Board As at 31 December 2019, the Supervisory Board held a total of 12,103,396 shares, and hence more than 1% of Deutsche EuroShop’s share capital. In addition to the general statutory provisions requiring public dis- closure, the rules of procedure of the Executive Board and of the Supervisory Board govern the reporting duties of Executive and Supervisory Board members in the event of dealings involving shares in the Company or related rights of purchase or sale, as well as rights directly dependent on the Company’s share price. Directors’ dealings The following securities transactions by members of the Executive Board and of the Supervisory Board or by certain persons related to members of the executive bodies were notified to Deutsche Euro- Shop AG during financial year 2019 in accordance with section 15a of the Wertpapierhandelsgesetz (WpHG – German Securities Trad- ing Act): Name / Company name Oliver Bell Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co Claudia Plath * ISIN: DE0007480204 Name of financial instrument Type of transaction Date Price (€) Number Total volume (€) Share * Purchase 22.03.2019 27.00 700 18,900.00 Place Xetra Share * Purchase ** 23.05.2019 27.40 200,000 5,480,000.00 Eurex Share * Purchase ** 21.06.2019 Share * Purchase 19.08.2019 25.00 22.60 200,000 5,000,000.00 1,000 22,600.00 Eurex Xetra ** Purchase / take-up due to previously concluded option transactions (sold put options) 8 2 Deutsche EuroShop / Financial Repor t 2019

CORPOR ATE GOVERNANCE DECLARATION OF CONFORMITY In September 2019, the Executive and Supervisory Boards of the Company jointly submitted their updated declaration of conform- ity with the recommendations of the Government Commission on the German Corporate Governance Code for financial year 2019 in accordance with section 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 Euro- Shop AG declare that the Company has complied with, and will con- tinue to comply with, the recommendations of the Government Com- mission on the German Corporate Governance Code (as published by the German Federal Ministry of Justice in the official section of the electronic German Federal Gazette (Bundesanzeiger) on 4 July 2003, and as amended on 7 February 2017), subject to a limited number of exceptions as indicated below. The Supervisory Board did not select a senior management team for a comparison of compensation (Section 4.2.2 of the Code). Since the staff of Deutsche EuroShop AG consists of just five 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 Super visory 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 state- ments that have been approved by the Supervisory Board. An earlier publication date is not feasible due to the schedules for the prepa- ration, auditing and adoption of the financial statements. Unaudited data of relevance to the capital market is published in advance. The existing D&O insurance policy taken out for the Supervisory Board does not provide for any deductible Hamburg, 30 September 2019 (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 mem- bers of these bodies perform the duties and functions assigned to them. The Executive Board and the Supervisory Board Deutsche EuroShop AG 8 4 Deutsche EuroShop / Financial Repor t 2019

LEGAL LEGAL Published by Deutsche EuroShop AG, Heegbarg 36, 22391 Hamburg Phone.: +49 (0)40 - 41 35 79 0, Fax: +49 (0)40 - 41 35 79 29 www.deutsche-euroshop.com, ir@deutsche-euroshop.com Art Direction & Design Silvester Group, Hamburg DISCLAIMER Information on wording: Wherever any terms indicating the male gender only (he, him, etc.) have, in the interests of simplicity, been used in this Annual Report, such references should be construed as referring equally to the female gender. Author contributions: Sections of text bearing an author’s name do not necessarily reflect the views of Deutsche EuroShop AG. The authors in question are responsible for the content of the texts. Trademarks: All trademarks and brand or product names mentioned in this Annual Report are the property of their respective owners. This applies in particular to DAX, MDAX, SDAX and Xetra, which are registered trademarks and the property of Deutsche Börse AG. Rounding and rates of change: Percentages and figures stated in this report may be subject to rounding differ- ences. The prefixes before rates of change are based on economic considerations: improvements are indicated by a plus (+); deterio- rations by a minus (–). Forward-looking statements: This Annual Report contains forward- looking statements based on estimates of future developments by the Executive Board. The statements and forecasts represent estimates based on all of the information available at the current time. If the assumptions on which these statements and forecasts are based do not materialise, the actual results may differ from those currently being forecast. Publications for our shareholder: Annual Report (in English and German), Quar- terly Statement 3M 2019, Quarterly Statement 9M 2019 and Interim Report H1 2019 (in English and German). Online Annual Report: The Deutsche EuroShop Annual Report can be downloaded in PDF format or accessed as an interactive online report at deutsche- euroshop.com. This Annual Report is also available in German. In the event of conflicts the German-language version shall prevail. Convenience Translation – the German version is the only binding version 8 6 Deutsche EuroShop / Financial Repor t 2019

ÁRKÁD PÉCS ALLEE-CENTER MAGDEBURG RHEIN-NECKAR-ZENTRUM VIERNHEIM CITY ARKADEN KLAGENFURT CITY- GALERIE WOLFSBURG CITY- ARKADEN WUPPERTAL OLYMPIA CENTER BRNO BILLSTEDT-CENTER HAMBURG SAARPARK-CENTER NEUNKIRCHEN STADT- GALERIE HAMELN FORUM WETZLAR www.shoppingcenter.ag