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 corporate governance Reporting on the separate financial statements 1 2 2 4 17 18 19 26 27 29 30 30 CONSOLIDATED FINANCIAL STATEMENTS 34 34 Consolidated balance sheet 36 Consolidated income statement 37 Statement of comprehensive income 37 Consolidated statement of changes in equity Consolidated cash flow statement 38 39 Notes RESPONSIBILITY STATEMENT BY THE EXECUTIVE BOARD INDEPENDENT AUDITOR’S REPORT EPRA REPORTING REPORT OF THE SUPER VISORY BOARD CORPORATE GOVERNANCE LEGAL DISCLAIMER 66 67 74 81 86 94 94 * A N ∙T I C I ∙ PA∙T I O N Anticipation, noun, a feeling of excitement about something that is going to happen in the near future

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. BASIC INFORMATION ABOUT THE GROUP 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 shop- ping 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. 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. 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. Objectives and strategy The management focuses on investments in high-quality shopping centers in city centers and established locations offering the poten- tial for stable, long-term value growth. A key investment target is the generation of high surplus liquidity from 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 cap- ital in shopping centers in different European regions in accordance with the principle of risk diversification. Germany is the main focus of 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. New investments should be financed from a balanced mix of sources, and external financing may not account for more than 55% of financ- ing across the Group over the long term. As a general rule, long- term interest rates are fixed when loans are taken out or renewed, with the goal of keeping the duration (average fixed interest period) at over five years. 2 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Economic review ECONOMIC REVIEW MACROECONOMIC AND SECTOR-SPECIFIC CONDITIONS Since March 2020, the world’s economies have been under the shadow of the coronavirus pandemic. All prior-year compari- sons should be viewed against this backdrop. Consequently, Ger- many’s gross domestic product (GDP) shrank by 5.0% in the year under review, according to the calculations by the German Federal Statistical Office. After ten years of growth, the German economy was stopped in its tracks by the first lockdown in spring 2020. The marked downturn in the second quarter (-9.8%) was followed by a growth and catch-up phase in summer, which was then brought to a halt in the fourth quarter by climbing case numbers and a second lockdown. The government’s protective measures in response to the corona- virus pandemic meant that consumers did not spend their disposable income as usual during the year under review. The savings rate hit a historic high of 16.3% (previous year: 10.9%), while private consumer spending, which accounted for 51.3% of GDP and had boosted growth in previous years, fell by 6.0% on a price-adjusted basis. Expenditure on accommodation and restaurant services and on rec- reational and cultural services recorded particularly sharp declines. Government expenditure on consumption, by contrast, increased by 3.4% after adjustment for prices, fuelled by factors such as the pro- curement of protective equipment and hospital services. Construc- tion investments were still up by 1.5% in 2020. In addition to private consumer spending, exports – and in particu- lar the low level of travel – were the main factors behind the decline in gross domestic product. On the labour market as well, the positive trend seen in recent years was interrupted by the coronavirus pandemic. On average, 2.7 million people were registered as unemployed during the year, putting the unemployment rate at 5.9% (previous year: 5.0%). Short-time work prevented significantly higher unemployment, which reached a new high of just under six million people in April. Consumer prices in Germany rose by just 0.5% versus 2019, curbed by the temporary reduction in VAT in the second half of 2020 and lower prices for energy products (-4.8%). Real employee pay decreased by 1.0% in the year under review, according to the German Federal Statistical Office. These wage losses especially impacted the lower wage groups, in which the pro- portion of short-time working was significantly higher. The calcula- tion of the change in real wages did not take into account the short- time working allowance, which reduced the loss of income for many employees. According to provisional calculations by the German Federal Statis- tical Office, German retail sales (including online sales) posted nom- inal growth of 5.1% and real growth of 3.9% over 2019. Once again, online sales were the main contributor to the positive sales trend in retail, growing by around one fifth. Online retail, which has already seen strong and steady growth in the past, has been given a signif- icant boost by the coronavirus pandemic as consumers shift to this alternate shopping channel. It is expected that bricks-and-mortar retail will not be able to regain its full share of sales after the pan- demic situation has returned to normal. The centers’ competitive position in the Deutsche EuroShop port- folio is determined with reference to both the shops in the rel- evant 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 Braunschweig 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 green- field sites outside the city limits and to a certain extent also within them. In Remscheid, in the catchment area of our Wuppertal shop- ping center, for example, a large-scale project development has been planned for some time, but its completion has now been postponed until 2024 /25. Retail sector According to calculations by JLL, a consultancy firm in the real estate sector, contract signings for retail space in Germany fell by 25% to 384,800 m² in 2020 in the wake of the exceptional situation caused by the coronavirus in the bricks-and-mortar retail sector. Of these, 57% of all lettings were for spaces measuring less than 250 m². The German Retail Federation (HDE) reports that online sales increased year on year to around €71.5 billion, an increase of approximately 20.7%. This equates to roughly a 12.4% share of total retail sales in 2020, which according to the HDE statistics came to €577.4 billion. Bricks-and-mortar retail sales in Germany grew 3.9% in nominal terms in 2020, though the key indicator for shopping centers of bricks-and-mortar fashion retail sales collapsed by 30% due to the coronavirus according to figures from the industry mag- azine TextilWirtschaft. Although food and drink retailers, drugstores and pharmacies were not affected by the lockdown measures, this range of “daily needs” products saw the strongest growth in online retail in percentage terms (+40.9%). The largest segment “Entertainment” (incl. e. g. elec- tronic goods & telecommunications, video & music downloads) grew by 10.5%, while the second-largest retail segment in terms of sales “Clothing” (incl. shoes) grew by 13.2%. 4 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Economic review Towards the end of the financial year, coronavirus infection rates rose again sharply in most European countries, accompanied by fur- ther government-mandated store closures, which also affected the important Christmas business of our tenants, especially in Germany. These reimposed lockdowns are still continuing in some cases. The store closures are having clear negative financial repercussions for the bricks-and-mortar retail trade and thus also for us, which must be taken into account with foresight when analysing the 2020 business figures and also when planning our further actions. It is important to emphasise that despite the multitude of pan demic- related challenges in the operational business, there were also some very positive signs. After each bout of shop reopenings, customer footfall increased quickly and significantly – despite ongoing operat- ing restrictions and the need to wear masks – and therefore so did the potential of our tenants to generate sales. This overall develop- ment clearly demonstrated that consumers still highly value bricks- and-mortar retail and shopping in our attractive shopping centers, even though business activity in some segments remained well below normal levels. The in-person shopping experience was and still is extremely popular, even after the outbreak of the corona virus pandemic. At the beginning of the pandemic, we quickly and rigorously took all the measures needed to cushion the effects of the crisis as best we could. To further improve our liquidity and financial leeway, oper- ating costs were reduced and non-essential investments halted or postponed. The dividend payment for financial year 2019 has been suspended. At the same time, we have been in detailed discussions with our banks and have successfully secured the refinancing due this current year. In this difficult situation we have provided temporary relief for our tenants even beyond the legal requirements, and have refrained from taking legal enforcement action for rent arrears caused by the coronavirus pandemic against the tenants concerned for the time being. In the spirit of partnership, discussions have been held with all tenants concerned to find fair solutions and share the bur- den, depending in each case on the legal and individual situation, and agreements have already been reached in the vast majority of cases. For the period of the government-mandated store closures from mid-December and possible further closures in 2021, we have regularly offered the tenants affected in Germany a waiver of 50% of their net rent, in the aim of concluding as quickly as possible a definitive contractual arrangement regarding the economic effects of the renewed lockdowns that is legally secure for both sides. We are convinced that in this special situation, this is the best foundation for shared and sustainable business success in the future. Due to the continued high level of uncertainty in financial year 2020 regarding the magnitude and duration of the substantial impact of the coronavirus pandemic on our tenants’ business and therefore on our business outlook, it has not been possible to renew the expec- tations regarding our key performance indicators for 2020 as pre- sented in the 2019 combined management report in the form of spe- cific target ranges. In April 2020, we expected revenue, EBIT, EBT (excluding measurement gains / losses) and FFO to be below the figures for the 2019 financial year. Business performance in 2020 confirmed this forecast. Revenue fell by 3.2% year on year due to the coronavirus from €231.5 million to €224.1 million. Earnings before interest and taxes (EBIT) were €161.2 million, down a considerable €36.2 million or -18.3% on the previous year. Accordingly, earnings before taxes and measurement gains / losses (EBT before measurement) fell by 21.8% to €127.6 million. Funds from operations (FFO) adjusted for measure- ment gains / losses and non-recurring effects were below the prior- year level at €2.00 per share (-17.4%). The 2020 operating result was extremely adversely impacted by the coronavirus pandemic and the resulting revenue losses and write-downs, while the further reduc- tion in interest expense had a positive effect on the operating result. The coronavirus pandemic also had major repercussions on the val- uation of our existing portfolio and led to a clearly negative measure- ment loss of €-429.6 million (previous year: €-120.0 million) in view of the higher average purchase yields for shopping centers, lower tenant expectations, longer re-letting periods and increased invest- ment requirements. 6 Financial Repor t 2020 / Deutsche EuroShop

01.01. – 31.12.2020 01.01. – 31.12.2019 (adjusted) 1 Change + / - in % 35,714 36,521 -807 -2.2 25,995 26,451 -456 -1.7 21,984 22,051 -67 -0.3 17,757 18,241 -484 -2.7 12,633 13,104 -471 -3.6 11,482 11,013 469 4.3 11,366 11,412 -46 -0.4 9,796 9,931 -135 -1.4 9,786 10,225 -439 -4.3 9,419 9,577 -158 -1.6 8,742 8,952 -210 -2.4 7,990 8,241 -251 -3.0 6,520 6,621 -101 -1.5 1,153 1,455 -302 -20.8 -1.8 COmbINEd mANAgEmENT REPORT / Economic review Revenue affected by the coronavirus pandemic Consolidated revenue was down 3.2% for the financial year, from €231.5 million to €224.1 million. This was due to the legal arrange- ments adopted in our foreign markets from mid-March to cushion the negative effects of the coronavirus pandemic, which included the temporary suspension of payment obligations under lease arrange- ments for tenants affected by the closures (-€3.2 million). To the extent that the payment obligation on the part of tenants was not suspended by law (applicable in particular to the Group’s German centers), rents continued to be invoiced during the closure phases on the basis of the applicable rental agreements. Concessions granted and expected on the receivables thus created were taken into account in write-downs and derecognition of receivables. Furthermore, defaults by tenants who got into payment difficulties, partial loss of turnover rent, longer re-letting periods and higher vacancy rates owing to the coronavirus pandemic were all additional factors that contributed to the decline in revenue and deterioration in the results of operations. RE VENUE * in € million 218.5 225.0 231.5 224.1 RE VENUE in € thousand Main-Taunus- Zentrum, Sulzbach Altmarkt-Galerie, Dresden A10 Center, Wildau Rhein-Neckar- Zentrum, Viernheim Herold-Center, Norderstedt Allee-Center, Hamm Billstedt-Center, Hamburg City-Galerie, Wolfsburg Forum, Wetzlar 205.1 14.9 30.7 36.7 37.7 33.8 City-Arkaden, Wuppertal 190.2 187.8 188.3 193.8 190.3 City-Point, Kassel Rathaus-Center, Dessau Stadt-Galerie, Hameln DES Verwaltung GmbH Domestic 190,336 193,795 -3,459 –3.2% 2016 2017 2018 2019 2020 Domestic International * In 2020, there was a change in the disclosure of revenue with adjustment of the comparative figures for the previous year 2019. A comparison with the years 2016 to 2018 is therefore only possible to a limited extent. Galeria Bałtycka, Gdansk Olympia Center, Brno Abroad TOTAL 12,517 16,381 -3,864 -23.6 21,250 33,767 21,311 -61 -0.3 37,692 -3,925 -10.4 224,104 231,487 -7,383 -3.2 1 The disclosure within NOI was changed in the year under review and the previous year’s revenue figures have been adjusted for easier comparability. Please refer to the information in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. Center operating costs excluding write-downs at prior-year level Center operating costs of €28.3 million in the reporting period, which mainly comprise center management fees, non-allocable ancillary costs, property taxes, building insurance and maintenance, were on a par with the previous year. 8 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Economic review EBIT (excluding measurement gains / losses) falls by one fifth due to the coronavirus The decline in EBIT and at-equity profit / loss plus the one-off interest refund the previous year caused EBT (excluding measurement gains / losses) to fall from €163.1 million to €127.6 million (-21.8%). Significant measurement loss The measurement loss of €-427.6 million (previous year: €120.0 mil- lion) resulted from the valuation of the Group’s real estate assets according to IAS 40, plus €2.0 million from the goodwill write-down for Olympia Brno. Measurement losses on real estate assets, after minority interests, broke down into €-353.8 million (previous year: €-94.2 million) from the measurement of the real estate assets reported by the Group and €-73.8 million (previous year: €-25.8 million) from the measure- ment of the real estate assets of the joint ventures recorded on the balance sheet according to the at-equity method. The average value of Group properties, after ongoing investments, fell by -10.7% (previous year: -2.9%); individual measurement gains / losses ranged between -14.4% and -7.4%. With a slightly lower occu- pancy rate of 95.4% (-2.2%), the valuation of the property portfolio was mainly influenced by an increase in average acquisition yields for shopping centers in Germany, investments in lease renew- als, modernising and positioning the existing portfolio, changes to expected rental trends and longer post-rental terms. The goodwill write-down for Olympia Brno was the result of the reversal of deferred taxes to be recognised in connection with the acquisition. The write-down was offset by corresponding income from the reversal of deferred taxes. Increase in taxes on income and earnings, deferred taxes Taxes on income and earnings amounted to €4.3 million (previ- ous year: €4.5 million). Taking into account the trade tax refund of €7.1 million included in the previous year, the Group’s tax burden was reduced on the back of the decline in profits and the corporate restructuring carried out the year before. Deferred tax provisions, including the share included in the at- equity result, were reversed by €54.6 million in the year under review as a result of the decline in the market value of real estate (previous year: €73.5 million). The reversal last year was mainly the result of the corporate restructuring within the Group completed at the end of financial year 2019, which will allow the extended trade tax reduction to be used to a greater extent than before. EPRA earnings and consolidated profit significantly lower EPRA earnings, which exclude measurement gains / losses, fell sig- nificantly to €124.5 million or €2.02 per share, due mainly to impair- ments of rent receivables and the decline in revenue. The decline in earnings is also attributable to a one-off income from trade tax refunds included in the previous year and the interest income accrued on this totalling €9.0 million. The large valuation loss resulted in a consolidated loss of €-251.7 million, after a consolidated profit of €112.1 million in the pre- vious year. Earnings per share amounted to €-4.07 (previous year: €1.81). EPR A E ARNINGS in € million /per share in € 141.3 147.4 158.3 2.56 124.5 2.42 2.39 123.7 2.29 2016 2017 2018 2019 2020 2.02 10 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Economic review 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 Ger- many (“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. – 31.12.2020 01.01. – 31.12.2019 (adjusted) 1 238,391 197,880 40,511 175,330 142,793 32,537 132,015 106,530 25,485 246,286 201,917 44,369 213,330 172,556 40,774 164,579 130,932 33,647 Change + / - -7,895 -4,037 -3,858 -38,000 -29,763 -8,237 -32,564 -24,402 -8,162 in % -3.2 -2.0 -8.7 -17.8 -17.2 -20.2 -19.8 -18.6 -24.3 1 The disclosure within NOI was changed in the year under review and the previous year’s figures for segment sales have been adjusted for easier comparability. Please refer to the information in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. As the coronavirus pandemic spread worldwide, it had a massive negative impact on all of our shopping centers. Differences arise between the segments in the area of revenue as some of our for- eign centers are subject to a statutory suspension of rental payment obligations during the closures. This explains the higher percentage decline in revenue in the International segment. The legal regulations and requirements that need to be fulfilled vary widely from coun- try to country; some of them, for example, provide for considera- tion from the tenant in the form of an advance extension of the lease. The suspension of rental payment obligations in individual foreign countries additionally means that a higher proportion of the rental concessions in the International segment will already have an effect on income in 2020, while in the Domestic segment some will not have an effect until 2021. Accordingly, the decline in EBIT and EBT (exclud- ing measurement gains / losses) abroad was higher in percentage terms. FINANCIAL POSITION OF THE GROUP Principles and objectives of financial management For the purposes of financing its investments, Deutsche EuroShop uses the stock exchange for procuring equity, as well as the credit and capital markets for procuring loans. Within the Group, both the individual property companies and Deutsche EuroShop AG act as borrowers from banks or, where necessary, bond debtors. Loans and bonds are taken out in euros for all Group companies. In general, the use of equity and loans for investments should be equally weighted and the equity ratio in the Group (including third-party interests) should not fall significantly below 45%. We finance our real estate projects on a long-term basis and also use derivative financial instruments to hedge against rising capi- tal market rates. Hedging transactions are used to hedge individual loans. An available credit line enables Deutsche EuroShop to react quickly to investment opportunities. Until used for investment, any cash not needed is invested short-term to finance ongoing costs or pay dividends. 12 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Economic review Of the 20 loans across the Group, 14 are subject to credit covenants with the financing banks. There are a total of 25 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. In the case of one loan of €57.5 million, there is sufficient evidence that an individual loan con- dition may not be met in 2021 which, depending on the extent of fail- ure to meet the condition, may trigger an annual special repayment of 0.5% to 1.0% of the loan amount or a prohibition on distribution for the Group company (cash sweep). The Group company concerned has sufficient cash and cash equivalents to meet this condition. For the other loans, the loan conditions will also be met in 2021 accord- ing to current planning. With regard to the uncertainties relating to the planning period as a result of the coronavirus pandemic, please refer to the report on events after the reporting date. Scheduled repayments totalling €15.9 million will be made from cur- rent cash flow during financial year 2021. Over the period from 2022 to 2025, repayments will average €10.3 million per annum. Two loans totalling €135.3 million are due for refinancing in the mid- dle of financial year 2021. Refinancing has already been concluded for a loan in the amount of €65.2 million, including an increase to €70.3 million. The second loan of €70.1 million is in the final stages of negotiation. Loans totalling €226.0 million must then be extended in 2022, €209.1 million in 2023 and €58.7 million in 2025. Current and non-current financial liabilities totalling €1,541.4 mil- lion were recognised in the balance sheet at the reporting date. The difference between the total amount and the amounts stated here relates to the short-term draw-down of the €30.0 million credit line, the financing costs to be distributed by means of the effective inter- est rate method as well as deferred interest and repayment obliga- tions that were settled at the beginning of 2021. Investment analysis In financial year 2020, investments continued to be made in mod- ernising and positioning the existing portfolio and amounted to €15.1 million after €19.3 million in the previous year. Liquidity analysis in € thousand 01.01. – 31.12.2020 01.01. – 31.12.2019 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 EQUIVALENTS AT ENd OF PERIOd 111,088 170,206 -14,576 -19,332 21,431 -119,122 117,943 31,752 148,087 116,335 266,030 148,087 The Group’s operating net cash flow of €111.1 million (previous year: €170.2 million) constituted the amount generated by the Company through the leasing of shopping center space after deduction of all costs. It is primarily used to finance the dividends of Deutsche Euro- Shop AG and payments to third-party shareholders as well as ongo- ing loan repayments and investments. Cash flow from investing activities consisted of cash-effective investment in portfolio properties (€15.1 million; previous year: €19.3 million) and the proceeds from the sale of a leasehold prop- erty (€0.5 million). Cash flow of €117.9 million from financing activities comprised a cash outflow from current repayments of financial liabilities of €16.7 mil- lion (previous year: €27.1 million), cash inflow from the assump- tion of financial liabilities of €45.7 million (including the short-term draw-down of €30.0 million of the credit line repaid in January 2021) and a pay-out to third-party shareholders of €7.5 million (previous year: €15.8 million). In the previous year, cash flow from financing activities also included the dividend payment of €92.7 million, which was suspended in 2020 to further strengthen the Group’s liquidity situation. Cash and cash equivalents rose by €117.9 million in the year under review to €266.0 million (previous year: €148.1 million). Cash and cash equivalents at the balance sheet date included the funds from the short-term draw-down of €30.0 million of the credit line. 14 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Economic review Current assets rise due to increase in cash and cash equivalents At the end of the year, current assets amounted to €303.7 mil- lion, representing a €133.6 million rise versus the previous year (€170.1 million), which was mainly the result of a €117.9 million increase in cash and cash equivalents as at the reporting date (€266.0 million; previous year: €148.1 million). Non-current assets down due to valuation losses on real estate assets Non-current assets fell from €4,388.5 million to €3,933.7 million in the year under review, representing a reduction of €454.8 million. At a share of 92.8% (previous year: 96.3%), they still make up the over- whelming proportion of total assets. The collection ratio, as the ratio of incoming payments to rent and service charge receivables from tenants, developed as follows in each individual month in 2020 up to the end of February 2021 due to the coronavirus. Adjustments from agreed rent reductions have already been taken into account in the figures. COLLEC TION R ATIO in % Q1 2020 99% Q2 2020 71% Q3 2020 96% Q4 2020 93% 2021 60% 100 98 98 96 96 95 97 92 90 76 72 64 63 58 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Accordingly, the Group’s receivables (after write-downs) increased sharply by €12.4 million to €19.8 million (previous year: €7.4 million). Other assets rose by €3.2 million, from €14.6 million to €17.8 million. Investment properties fell by €385.6 million to €3,437.1 million, which corresponds to a decline of -10.1%. While additions and the costs of investments in portfolio properties came to €15.1 million, revaluation of the property portfolio resulted in valuation losses of €400.2 million. At-equity financial investments declined by €67.0 million from €511.5 million to €444.5 million. This decrease is attributed to the share of profit / loss (€-51.5 million) and the losses for the financial year (€15.5 million). Current and non-current liabilities declining on the whole Current liabilities increased to €211.2 million due to the expira- tion of two loans totalling €136.5 in mid-2021 – of which refinanc- ing for €65.8 million of this amount had already been concluded and €70.7 million was in the final stages of negotiation at the time the consolidated financial statements were prepared – coupled with the short-term draw-down of the credit line (€30 million). Non-current liabilities fell from €1,846.0 million to €1,711.4 million, which constitutes a decline of €134.6 million, owing to the reversal of deferred tax liabilities (€-53.8 million), the reallocation of the loan maturing in mid-2021 to current liabilities (€-136.5 million) as well as the balance from scheduled repayments and the raising of new long- term loans (€62.7 million). Equity (including third-party interests) At €2,314.8 million as at the end of the reporting year, equity (includ- ing third-party shareholders) was down €286.7 million on the pre- vious year (€2,601.5 million), mainly attributable to the consolidated loss. Redemption entitlements for third-party shareholders fell by €40.4 million, and the market values of swaps boosted equity by €5.4 million. 16 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Report on events after the reporting date / Outlook In Poland, measures requiring the closure of shops in shopping centers, which have been in force since 28 December 2020, were lifted again on 1 February 2021, subject to conditions such as wearing a mask and observing limits on the number of customers allowed per square metre; they were then reimposed regionally from 13 March and from 20 March 2021 nationwide. The closure measures will apply at least until 9 April 2021. Tenants’ losses and continued shop closures in individual countries may have an impact on the valuation of our shopping centers. Please refer to the sensitivity analysis in section “8. Investment properties”. No further significant events occurred between the reporting date and the date of preparation of the financial statements. Widespread retail closures in the Czech Republic since 27 December 2020 became even stricter effective 1 March 2021, and the list of shops allowed to remain open has been shortened even further. OUTLOOK As of 8 February 2021 and subject to certain conditions, Austria has cancelled shop closures that had been in force since 26 December 2020. Hungary closed its retail shops for the first time from 8 March 2021. Even prior to that, however, catering operations had only been possible to a limited extent (take-away) and retailers had to observe the appli- cable protective measures, such as restrictions on opening hours and mask requirements. General conditions The success of Deutsche EuroShop’s business depends mainly on the overall macroeconomic performance. This applies to both the global economy, due to our core market of Germany’s huge dependency on exports, and to the specific performance of the national economies within our five European markets. A thriving economy, based on sta- ble political conditions and good trade relations as well as on func- tioning international value creation chains, is in this respect a factor that has a significant influence on the growth of the respective popu- lation’s income, consumer confidence and retail sales. The closures, which extend well into 2021, have further exacerbated the economic situation of the tenants affected. For many tenants, the Christmas season was heavily impacted by the closures in late autumn and the renewed closures from mid-December 2020. The states’ sup- port programmes were either unable to compensate for this or only to a limited extent. The German federal government, in its annual economic report pub- lished at the end of January 2021, forecasts that gross domestic product will grow by 3.0% in the current year. Growth is expected to be supported, among other things, by the German exports industry, which should benefit from a marked recovery in the global economy as the coronavirus pandemic is gradually brought under control. Deutsche EuroShop is in continued dialogue with tenants via its ser- vice provider, ECE, in order to arrange support measures. Among other things, at the beginning of 2021 the affected tenants of the German shopping centers were made a regular offer under which half of the net rent excluding ancillary costs would be waived for the duration of the closure since mid-December 2020 and for all further closures in 2021. While the federal government has suspended the requirement to file for bankruptcy in the event of pandemic-related insolvency and over-indebtedness in an effort to mitigate the effects of the corona- virus pandemic and has now extended this exemption to the end of April 2021, there is still a risk of further tenant insolvencies. More ten- ants have already filed for insolvency or announced branch closures in 2021. This may necessitate additional write-downs on the receivables reported as at the reporting date. The coronavirus pandemic put the temporary brakes on the 14-year growth trend in employment in 2020. The German government expects employment figures to pick up from the second quarter of 2021 onwards as the economic recovery gathers pace. Consumer price levels should increase again in 2021 following the temporary reduction in VAT and the low energy prices seen last year. Gross sal- aries are projected to increase due to additional relief measures (extensive abolition of solidarity surcharge, adjustment of income tax scale). After deducting price increases, private consumption is forecast to rise by 3.6% and thus make a significant contribution to growth. The projection is subject to a high degree of uncertainty due to ques- tion marks concerning the further course of the pandemic. The fed- eral government’s estimate is based on the assumption that the lock- down measures, which have been in place since November and were tightened in December 2020, will remain in force until February 2021 before they are gradually eased once more. 18 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Risk report 2. Centers under construction • Pre-leasing levels • Construction status • Budget status • Development of financial covenants in loan agreements and observance of disbursement conditions Risks are identified by observing issues and changes that deviate from the original plans and budgets. The systematic analysis of eco- nomic data such as consumer confidence and retail sales trends is also incorporated into risk management. The activities of competi- tors are also monitored continually. The decentralised preparation of Group-relevant reports by the ser- vice provider is followed by the aggregation and consolidation of the individual annual financial statements and the preparation of the information for reporting in the notes and combined management report in the accounting department of the holding company with the aid of the consolidation software Conmezzo. This is accompa- nied by manual process controls such as the principle of dual control by the employees charged with ensuring the regularity of financial reporting and by the Executive Board. In addition, within the scope of its auditing activities, the auditor of the consolidated financial statements performs process-independent auditing work, including with respect to financial reporting. Risk inventory The risks identified in the course of the risk analysis are summa- rised in a risk inventory and evaluated in terms of their potential loss amounts and likelihood of their occurrence in consideration of com- pensatory measures (from a net standpoint). The risk inventory is regularly examined and updated when necessary. Advice on limitations By virtue of the organisational, control and monitoring measures laid down in the Group, the internal control and risk management system enables the full recording, processing and evaluation of Company- related facts as well as their proper presentation in Group finan- cial reporting. Furthermore, the Executive Board uses scenario-based simulations, in which the key planning parameters (including rent, cost, return and interest rate trends) are changed, to assess the way in which risk aggregation affects the Group’s continued existence. This anal- ysis also allows for an evaluation to be carried out as regards which risks the Group can sustain. The Executive Board reports on significant new risks and the scenario- based simulations in the Supervisory Board meetings. In the event of risks that jeopardise the continued existence of the Group, a report is issued immediately. Decisions based on personal judgement, flawed controls, criminal acts or other circumstances cannot be entirely ruled out, however, and may limit the effectiveness and reliability of the internal control and risk management system that is in use. Consequently, the appli- cation of the systems used cannot guarantee absolute security as to the correct, complete and timely recording of facts in Group finan- cial reporting. The statements made relate solely to those subsidiaries included in the consolidated financial statements of Deutsche EuroShop for which Deutsche EuroShop is in a position, directly or indirectly, to dictate their financial and operating policies. ACCOUNTING-RELATED INTERNAL CONTROL SYSTEM Preparation of the financial statements is a further important part of the internal control system and is monitored and controlled at the level of the Group holding company. Internal regulations and guide- lines ensure the conformity of the annual financial statements and the consolidated financial statements. 20 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Risk report Market and sector risks The coronavirus pandemic and the hygiene and protective measures taken by the authorities have had a massive impact on the bricks- and-mortar retail trade in the form of lost sales. In addition to the temporary store closures that are affecting the majority of our ten- ants, many consumers also find it annoying to have to wear mouth and nose protection while out shopping, meaning they are mostly only buying the things they actually need. The shopping experience, the marketplace concept as well as the role of the centers as a place to meet and have fun have receded into the background during these phases. In addition, lockdowns have a significant and in some cases lasting influence on purchasing behaviour. The closures have led to a significant increase in the proportion of purchases made online. In Germany, this share rose to 12.4% in 2020. Online retail will continue to grow in future and increase its share of total retail sales. The segments of fashion, shoes and consumer electronics, in particular, continue to dominate online commerce, together making up around 45% of total online sales, and are also especially heavily represented in shopping centers. Despite this gen- eral trend, attractive retail spaces are still a strong pull for custom- ers. After stores were reopened in the second quarter of 2020, and again in Austria and Poland in the middle of the first quarter of 2021, bricks-and-mortar retail underwent a rapid and significant recovery in customer footfall. Although visitor numbers still lagged behind the levels recorded prior to coronavirus, they show that attractive and spacious retail facilities that are leaders in their respective catch- ment areas and can offer customers a broad range of products, an enjoyable time and a special shopping experience can continue to hold their own. Alongside the growth in online retail, additional retail commercial space offered on the rental market, created for example through the building, expansion or modernisation of shopping or factory outlet centers both in city centers and on the outskirts, as well as through the revitalisation of retail locations in city centers, may cause real- isable revenues in bricks-and-mortar retail trade to be distributed over more rental space overall and lead to lower space utilisation. Larger or improved rental space offerings in the competitive environ- ment of our shopping centers and a potentially permanent redistri- bution of retail revenues to online channels and the accompanying permanent drop in space utilisation for bricks-and-mortar retailers harbour the risk that subsequent leases and /or renewals could be concluded at lower rent prices and /or under less favourable con- tractual terms. To counter the rising share of online retail along with potential pres- sure on space utilisation, bricks-and-mortar retail is embracing floor-space restructuring and focusing on good retail locations, opti- mising product ranges, improving the quality of service and placing an emphasis on individual consultations when shopping. The inter- connection between the offline and online worlds is also becom- ing increasingly important. In this respect, retailers are at different stages of progress and success, particularly as far as implementa- tion of their omni-channel concepts is concerned, as the past year in particular has shown. If bricks-and-mortar retailers do not have an online presence or maintain only a very limited online offering, this means that during pandemic-related store closures they have few or even no distribution options. As a result, the corporate reserves of the affected tenants are being stretched to breaking as the pan- demic continues, and a number of retailers have already had to file for bankruptcy. The small number and limited extent of state support measures and landlord concessions have only been able to compen- sate for a portion of these losses. Since the start of the coronavirus pandemic, there has been an increased trend among retailers to develop or expand their own omni-channel strategies. Deutsche EuroShop AG is actively con- fronting this trend with a variety of measures. A key focus here is to optimise the integration of the offline and online shopping worlds through the Digital Mall concept, which aims to enable customers to see, prospectively reserve and order products that are immedi- ately available in a shopping center conveniently and in just a few clicks via their smartphone or over the Internet. The basic function- ality (“product search”) of Digital Mall was rolled out in all of our Ger- man shopping centers by the end of 2019. The offering remains lim- ited during the market launch phase. However, over 2.2 million prod- ucts were already available by the end of 2020, and the omni-channel offering continues to grow through the successive integration of an ever-increasing number of retailers and locations. The leisure, customer experience and meeting point aspects of our centers are also being enhanced. In addition to the creation of attractive and new restaurant spaces, this includes our “At Your Ser- vice” and “Mall Beautification” investment programmes which were launched back in 2018, even if these have currently been adjusted or partially postponed due to the coronavirus. The aim is to make the centers a more pleasurable place to be and to raise the qual- ity of service through targeted investments in, among other things, improved service and lounge areas, modern entertainment zones for kids, simplified in-house navigation when searching for shops or parking using touch screens or smartphone solutions, and intelligent parking guidance systems. The conclusion of leases with as long a term as possible with tenants with high credit ratings across every retail segment also reduces market and sector risks. 22 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Risk report Valuation and cost risks 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 bur- den on to tenants and /or to subsequent reimbursements to same. Besides financial losses, this could also affect tenant satisfaction. 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 economically be passed on entirely to tenants as ancillary costs in future. 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 identifia- ble risks into account in our calculations as a precautionary meas- ure at the planning stage. In addition, more large-scale construc- tion 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. The coronavirus pandemic has an indirect impact on management and cost risk. Even if the coronavirus-related rent concessions agreed with tenants regularly provide that ancillary costs will also be paid by tenants during the closure phase, the loss of tenants could result in longer vacancy periods and renovation measures, leading to an increase in the proportion of non-allocable ancillary costs and necessary investments. We rate the likelihood of budget overruns and additional costs as higher than in the previous year and have set this to medium (assessment of likelihood of occurrence according to 2019 combined management report: low). Financing and interest rate risks Interest rate levels are materially determined by underlying macro- economic and political conditions and therefore cannot be predicted by the Company. There is a risk that refinancing may only be availa- ble at higher interest rates than before. This would negatively impact EBT and FFO. As at the reporting date, the Group’s financing arrangements for the most part involved long-term interest rate hedging. There is cur- rently no discernible risk to the Group in connection with changes in interest rates based on upcoming new financing and refinanc- ing agreements. On the basis of current interest rate levels and the available loan offerings, it is expected that refinancing can be con- cluded at lower interest rates than the original rates contracted and that the planned interest rates are attainable with sufficient cer- tainty. We are constantly monitoring the interest rate environment so as to be able to react appropriately to interest rate changes. We minimise the interest rate risk for new property financing as far as possible by entering into long-term loans with fixed-interest periods of up to 15 years. Deutsche EuroShop AG occasionally uses derivatives that qualify for hedge accounting to hedge interest rate risks. These interest rate swap transactions transform variable interest rates into fixed inter- est rates. An interest rate swap is an effective hedge if the princi- pal amounts, maturities, repricing or repayment dates, interest pay- ment and principal repayment dates, and the basis of calculation used to determine the interest rates are identical for the hedge and the underlying transaction and the party to the contract fulfils the contract. The Company counters the risk of default by stringently examining its contract partners which are also lenders. Interest rate swaps and the underlying transaction are generally reported as one item in the annual financial statements. Financial instruments are not subject to liquidity or other risks. A test of effectiveness for the hedges described is implemented regularly. An economic or financial crisis, the substantial direct and indirect repercussions of the coronavirus pandemic on the operations and cash flow of retail properties as well as a clear intensification of online competition or a stricter regulation of the financial sector could lead to a significant deterioration of banks’ lending policies with respect to credit margins, financing terms and expiries as well as loan conditions, which would negatively affect the earnings and financial position of the Company. Under extreme circumstances, the financing market could dry up altogether. The possibility cannot be completely excluded that, due for example to a deterioration in the results of operations of individual property companies or a change in lending policy, banks may not be prepared to provide refinanc- ing or to extend credit lines. Deutsche EuroShop AG responds to this financing risk by concluding long-term loan agreements, avoiding the accumulation over time of loan maturities and observing conserv- ative debt ratios. Furthermore, the Company maintains long-term business relationships with a large number of investment, commer- cial and mortgage banks in its target markets in order to secure the best possible access to the capital markets. 2 4 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Opportunity report 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. The coronavirus pandemic has significantly increased the pressure to act and the required speed of implemen- tation. Even before this, however, there was a clear trend towards purely online retailers increasingly opening shops and branch net- works or gaining access to bricks-and-mortar retail chains and their branch network through acquisitions or joint ventures. This develop- ment is based on the expectation from customers that they will be able to buy all products online or offline depending on the situation. Lots of retailers had to accept that they were only able to gener- ate revenue during the closure phase with an omnichannel sales approach as this sales approach opens up new opportunities in the areas of customer contact and service and provides revenue growth potential. Attractive bricks-and-mortar retail spaces and thus also shopping centers will continue to play an important role in the transformation of the retail landscape to a largely integrated omni- channel distribution. This is supported by the rapid and relatively significant recovery in customer footfall and tenant revenue in many segments following the reopening of stores post-lockdown. In addi- tion, bricks-and-mortar spaces are also increasingly lending them- selves to being used as local logistics hubs for fast and cost-efficient delivery services. Given the prompt stabilisation of the pandemic situation and the positioning of our shopping centers at first-rate locations, broad sec- tor diversification within the centers, the increasing link-up between the shopping centers and online retail via Digital Mall, and their con- ceptional adaptation with an emphasis on leisure, customer experi- ence and meeting point aspects, and the increasing complementary importance of shop space to online retail, we see opportunities for further success even during the current accelerated phase of struc- tural change. In the area of financing, the continued environment of low interest rates affords fundamentally good opportunities for concluding refi- nancing and new financing agreements on more favourable terms, which would positively impact EBT and FFO. In addition, once the special challenges posed by the coronavirus pandemic have been overcome and the market situation has stabi- lised, there will be growth opportunities for Deutsche EuroShop AG through the acquisition of further shopping centers or stakes therein, in keeping with its clearly defined, selective investment strategy. This, in turn, would positively impact the results of operations. Fur- ther external growth can also enhance the diversification effect in the Company’s holdings portfolio. Due to the great degree of flexi- bility in the implementation of our acquisition and holdings struc- tures, our good reputation with banks and as a reliable partner in the real estate market, the Company will be well positioned follow- ing stabilisation of the pandemic situation to continue to operate in the transactions market in such a way as to exploit opportunities going forward. 26 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Remuneration report REMUNERATION OF THE EXECUTIVE BOARD 2020 The remuneration of the Executive Board amounted to €1,323 thou- sand, which broke down as follows: in € thousand Contributions made Fixed remuneration Ancillary benefits Total One-year variable remuneration Multi-year variable Remuneration 1 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 2020 2019 2020 (min.) 2020 (max.) 282 22 304 354 0 354 143 801 282 25 307 404 0 404 143 854 0 0 423 ( 2) 2020 236 0 236 283 0 283 3 522 2019 2020 (min.) 2020 (max.) 199 12 211 284 0 284 3 498 0 0 300 ( 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 remuneration figures for the previous year. 2 no maximum In 2020, the Executive Board was in receipt of payments totalling €1,281 thousand: in € thousand Income Fixed remuneration Ancillary benefits Total One-year variable Remuneration1 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 2020 2019 2020 (min.) 2020 (max.) 282 22 304 404 0 404 50 758 282 25 307 390 0 390 50 747 0 0 423 ( 2) 2020 236 0 236 284 0 284 3 523 2019 2020 (min.) 2020 (max.) 199 12 211 279 0 279 3 493 0 0 300 ( 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 remuneration figures for the previous year. 2 no maximum Total 2020 540 637 146 1,323 Total 2020 540 688 53 1,281 28 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Acquisition reporting / Declaration on corporate governance / Reporting on the separate financial statements 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 or – if this is lower – on exercise of the authorisation by 27 June 2023. As at 31 December 2020, no use had been made of this authorisation. DECLARATION ON CORPORATE GOVERNANCE (SECTION 289F, SECTION 315D HGB) 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. The declaration on corporate governance, in conformity with section 3.10 of the Deutscher Corporate Governance Kodex (German Corpo- rate Governance Code) and section 289f, 315d of the Handelsgesetz- buch (HGB – German Commercial Code) has been published on the Deutsche EuroShop website at 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. www.deutsche-euroshop.com/EZU 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 Sec- tor-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. 3 0 Financial Repor t 2020 / Deutsche EuroShop

COmbINEd mANAgEmENT REPORT / Reporting on the separate financial statements FINANCIAL POSITION OF DEUTSCHE EUROSHOP AG (HGB) FORECAST FOR DEUTSCHE EUROSHOP AG (HGB) in € thousand Net profit Undistributed share in entitlement to profits 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 activities 2. Outflows for new investments 3. Inflows from equity 01.01. – 31.12.2020 01.01. – 31.12.2019 18,254 69,129 -14,109 0 0 50,509 10,084 6,618 At the present time, it is not possible to make an assessment of the negative effects the continuing pandemic will have on the operating profits of our investees, and thus to provide a forecast for the 2021 financial year as a whole. The repercussions depend, in particular, on the duration and extent of the pandemic, the efficacy of vaccinations and the vaccination status of the population, further official restric- tions, legislation and support measures. However, we expect lower investment income from our investees in 2021. -160 -12,846 Hamburg, 25 March 2021 14,069 113,410 0 0 -100 0 -1,753 Inflows /outflows from bank loans -1,777 4. Inflows /outflows from financing activities 5. Other cash changes in the balance sheet -1,777 -1,753 -2,108 -258 6. Dividend for the previous year 0 -92,675 Liquidity at the start of the year 69,027 50,403 Cash changes in liquidity (1st to 6th subtotal) Liquidity at the end of the year 10,184 79,211 18,624 69,027 Due to the lower share in earnings of investments and the partial waiver of distributions to strengthen liquidity in investments, free cash flow from operating activities fell to €14.1 million in the year under review, compared with €113.4 million in 2019 (-87,6%). For the past financial year, there was a return on the equity paid in amount- ing to €1,369.0 million of 1.0% compared with 8.3% in the previous year. Free cash flow per share fell from €1.84 to €0.23. The outflows for new investments in the previous year included the newly founded DES Beteiligungs GmbH & Co. KG as part of the corpo- rate restructuring of the Group. 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. 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 (€-2.1 million), liquidity ended the year at €79.2 million. 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 (-). 32 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Consolidated balance sheet CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Note 31.12.2020 31.12.2019 7. 7. 8. 9. 10. 11. 12. 51,732 330 3,437,145 444,517 3,933,724 19,822 17,805 266,030 303,657 53,752 424 3,822,786 511,493 4,388,455 7,417 14,646 148,087 170,150 Assets in € thousand ASSETS Non-current assets Intangible assets Property, plant and equipment Investment properties Investments accounted for using the equity method Non-current assets Current assets Trade receivables Other current assets Cash and cash equivalents Current assets TOTAL ASSETS 4,237,381 4,558,605 3 4 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Consolidated income statement CONSOLIDATED INCOME STATEMENT in € thousand Revenue Property operating costs Property management costs Write-downs and disposals of financial assets 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 Interest income Financial gains or losses Measurement gains / losses Earnings before tax (EBT) Taxes on income and earnings CONSOLIdATEd PROFIT Earnings per share (€), undiluted and diluted Note 01.01. – 31.12.2020 01.01. – 31.12.2019 (adjusted) 1 19. 20. 21. 10., 22. 23. 24. 9., 25. 17. 26. 27. 28. 224,104 -18,581 -9,707 -29,218 166,598 2,400 -7,759 161,239 -51,482 -43,716 -13,501 547 -108,152 -355,845 -302,758 51,041 -251,717 -4.07 231,487 -17,488 -10,813 -1,674 201,512 1,915 -5,958 197,469 4,345 -49,256 -18,443 2,745 -60,609 -94,188 42,672 69,419 112,091 1.81 1 The disclosure within net operating income was changed in the year under review and the previous year’s figures have been adjusted for easier comparability. Please refer to the information in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. 3 6 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Consolidated cash flow statement CONSOLIDATED CASH FLOW STATEMENT in € thousand Consolidated profit Income taxes Financial gains or losses Amortisation /depreciation of intangible assets and property, plant and equipment with a finite life Unrealised changes in fair value of investment property and other measurement gains / losses Distributions and capital repayments received Changes in trade receivables and other assets Changes in current provisions Changes in liabilities Cash flow from operating activities Interest paid Interest received Income taxes paid Net cash flow from operating activities Investments in investment properties Inflows from the disposal of investment properties Investments in intangible assets and property, plant and equipment Inflows from the disposal of financial assets Cash flow from investing activities Assumption of financial liabilities Repayment of financial liabilities Repayment of lease liabilities Payments to limited partners Payments to Group shareholders Cash flow from financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of period CASH ANd CASH EQUIVALENTS AT ENd OF PERIOd Note 01.01. – 31.12.2020 01.01. – 31.12.2019 26. 23. 25. 9. 10., 11. 18. 15. 26. 8. 14., 28. 14. 15. 17. 13. 12. 12. -251,717 -51,041 108,152 144 355,845 15,494 -15,920 193 -2,084 159,066 -43,669 547 -4,856 111,088 -15,053 490 -13 0 -14,576 45,721 -16,687 -89 -7,514 0 21,431 117,943 148,087 266,030 112,091 -69,419 60,609 169 94,188 23,896 -4,894 707 4,419 221,766 -48,776 2,745 -5,529 170,206 -19,324 0 -27 19 -19,332 16,575 -27,101 -107 -15,814 -92,675 -119,122 31,752 116,335 148,087 3 8 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes 2. BASIS OF CONSOLIDATION The scope of consolidation has not changed compared with the previous year. As at 01.01. / 31.12.2020 Domestic 1 Abroad 1 Total Fully consolidated subsidiaries Associates included in consolidated financial statements in accordance with the equity method Joint ventures Associates included in consolidated financial statements in accordance with the equity method Associates 11 4 0 4 3 1 15 7 1 1 Companies are allocated in accordance with the segment allocation based on the loca- tion of the respective shopping center. This may be different from the company domicile. Subsidiaries The consolidated financial statements include the financial state- ments of the parent company and of the companies controlled by it. Deutsche EuroShop AG gains control when it: • • • is in a position to take decisions affecting another company, is exposed to fluctuating returns and reflows from this holding, and is able, by reason of its decision-making capacity, to influence such returns. At every reporting date, a new assessment is carried out to establish whether or not an investee is controlled, by reference to whether cir- cumstances indicate that one or more of these criteria have changed. Financial information of subsidiaries with significant non-controlling interests The Group holds a stake of 52.01% in Main-Taunus-Zentrum KG, Ham- burg and exercises a controlling influence over the Company. The other 47.99% of shares are in free float. The Company posted non-cur- rent assets of €689,867 thousand (previous year: €759,972 thousand) and current assets of €30,842 thousand (previous year: €19,710 thou- sand) as at the reporting date. Non-current liability items amounted to €211,814 thousand (previous year: €214,127 thousand) and current liability items totalled €8,759 thousand (previous year: €7,895 thou- sand). The Company generated revenue of €35,714 thousand (previous year: €36,521 thousand) and net profit (after earnings due to limited partners) of €-26,335 thousand (previous year: €21,949 thousand). A dividend of €3,305 thousand (previous year: €10,242 thousand) was paid to limited partners in the year under review. Joint ventures Joint ventures in which Deutsche EuroShop AG has a majority of the voting rights together with third parties are classified as joint operations and accounted for using the equity method. Deutsche EuroShop AG has a 75% stake in Stadt-Galerie Passau KG, Hamburg. On the basis of corporate agreements, Deutsche EuroShop AG does not hold the majority of voting rights or exercise sole control of this Company. Associates In accordance with IAS 28, where Deutsche EuroShop AG can exer- cise a significant influence but not control over companies, these investments are measured using the equity method. Investees Investments over which Deutsche EuroShop AG has neither signifi- cant influence nor control are measured at fair value in principle. In line with IFRS 9, for initial recognition of an investment the Group has the irrevocable right to choose to record the fair value adjust- ment in other income as well. As at 31 December 2020 the Group had no investees. 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. 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 recognised in income following a reassessment. 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 0 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes Changes in presentation In contrast to the previous year, the costs that are transferred for building insurance and property tax are no longer shown netted as these costs are part of the leasing component As a result, revenue and property operating costs each increased by €5,704 thousand in the financial year (previous year: €5,546 thousand). of strong fluctuations, using the rate that applied on the date of the transaction. Any translation differences arising if the translation rates of the balance sheet and consolidated income statement differ are recognised in profit or loss. Translation was based on the following exchange rates: Furthermore, in contrast to the previous year, write-downs and disposals of financial assets are reported separately in the consoli- dated income statement. In the previous year, these were included in property operating costs in the amount of €1,674 thousand. €1 = 31.12.2020 31.12.2019 Closing rate Average rate Closing rate Average rate Both changes in presentation are made within net operating income (NOI) in the consolidated income statement. The previous year’s figures in the consolidated income statement have been adjusted to improve comparability of the current financial year with the previous year: in € thousand Revenue 2019 (adjusted) 2020 Change in presenta- tion 2019 224,104 231,487 5,546 225,941 Property operating costs -18,581 -17,488 -3,872 -13,616 Property management costs Write-downs and disposals of financial assets Net operating income (NOI) -9,707 -10,813 0 -10,813 -29,218 -1,674 -1,674 0 166,598 201,512 0 201,512 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 foreign 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 recognition. Non-monetary items to be reported at fair value are translated at the closing rate. Items in the consolidated income state- ment are translated at average rates for the year or, in the event Hungarian forint (HUF) 365.13 351.17 330.52 325.35 Polish zloty (PLN) Czech koruna (CZK) 4.61 26.24 4.44 25.41 4.26 25.41 4.30 25.73 In addition, Deutsche EuroShop AG has a bank account in US dollars with a value of $446 thousand as at the balance sheet date, which was translated at an exchange rate of 1.23. 6. SIGNIFICANT ACCOUNTING POLICIES AND VALUATION METHODS Revenue and expense recognition As a general rule, 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. The rental concessions granted in connection with the coronavirus pandemic, to the extent that they relate to receivables that arose in the period up to the contractual agreement with the tenant, are treated as a waiver of receivables and recognised as a disposal of financial assets. Rental concessions that affect the period after the contractual agreement with the tenant are treated as a modifica- tion to the lease and are distributed on a straight-line basis over the remaining lease term from the date the agreement was reached. This approach is not applicable with respect to the cessation or reduction of rental payments that have been made on the basis of an existing lease agreement or by law. Those are treated as variable lease pay- ments and recognised in revenue as they actually arise. 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. This does not include operating costs that are passed on and for which the tenants do not receive a separate service (property tax and build- ing insurance). The proceeds received through the transfer of these expenses, which are included in the property operating costs, are recognised in revenue (unnetted recognition). For further explana- tions on this topic, see section “4. New accounting standards and changes in presentation”. 4 2 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes Investment properties Under IAS 40, investment property must initially be measured at cost at the date of acquisition. Property that is under construction and intended to be used as investment property following its comple- tion also falls under the scope of IAS 40. Property held as a financial investment can be recognised either at amortised cost (cost model) or using the fair-value model. Subsequently, all properties must be measured at their fair value and the annual net changes recognised in income under measure- ment gains / losses (recurring fair value measurement). Investment property is property held for the long term to earn rental income or capital gains. Under IAS 40, investment property measured using the fair value model is no longer depreciated. Borrowing and initial rental costs that are directly attributable to the acquisition, construction or production of a qualifying asset are included in the cost of that asset until the time at which the asset is largely ready for its intended use. Income realised from the temporary investment of specifically borrowed funds up to the point when these are used to obtain qualifying assets is deducted from the capitalisable costs of these assets. General administrative costs are not added to the costs of these assets. All other borrowing costs are recognised in income in the period in which they occur. Maintenance measures relating to property, plant and equipment are recognised as an expense in the financial year in which they occur. Group as lessee The Group assesses at inception whether an agreement is a lease or not and for the term of provision recognises an asset for the right of use granted and a lease liability. Initial measurement of the right of use and lease liability is at the present value of the lease payments to be made. Discounting is at the Group’s marginal borrowing rate. Subsequently, the right of use is amortised on a straight-line basis over the term of the lease, and the lease liability is reduced by the lease payments made and increased by the interest accrued on the portion not yet repaid. Financial instruments Financial assets and liabilities are recognised in the consolidated balance sheet when the Group becomes a party to the contractual provisions governing the financial instrument. Financial instruments are allocated to an IFRS 9 measurement category when they are recognised for the first time. With financial assets, the measurement category is dependent on the cash flow property of the financial instrument and the business model of the Group which holds the financial asset. Receivables and other current assets Receivables and other current assets are recognised at amor- tised cost less write-downs. As a general rule, 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. This does not include receivables due from tenants due to the temporary cessation of rental payments as a result of the coronavirus pandemic and for which no contractual agreement had been reached with the tenant by the balance sheet date. The write- down for this receivable was measured based on the expected rent concessions to be granted. 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 redemption. According to sections 131 et seq. HGB, shareholders in commercial 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. 4 4 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes NOTES TO THE CONSOLI- DATED BALANCE SHEET 7. INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT in € thousand Costs as at 1 January Addition from right-of-use assets (IFRS 16) Additions Disposals as at 31 December Depreciation as at 1 January Additions Disposals as at 31 December Carrying amount at 1 January CARRYINg AmOUNT AT 31 dECEmbER Goodwill 2020 53,867 2019 53,867 0 0 0 53,867 -140 -2,008 0 -2,148 53,727 51,719 0 0 0 53,867 -140 0 0 -140 53,727 53,727 Software and software licenses Operating and office equipment 2020 105 0 0 0 105 -80 -12 0 -92 25 13 2019 72 0 33 0 105 -63 -17 0 -80 9 25 2020 799 25 13 0 837 -375 -132 0 -507 424 330 2019 440 369 4 -14 799 -227 -152 4 -375 213 424 The goodwill arose from deferred tax liabilities for the real estate assets that had to be recognised at the time of the initial consolida- tion (31 March 2017) of Olympia Brno. The depreciation of the Olympia Brno property resulted in a reversal of the deferred tax lia- bilities recognised for Olympia Brno to €51,719 thousand in the year under review. Goodwill was adjusted to the amount of deferred tax liabilities through depreciation of €2,008 thousand. The addition from right-of-use assets (IFRS 16) in the previous year resulted from the capitalisation of a leasehold. The annual ground rent of €10 thousand payable for this is charged to a tenant in the same amount. As at the reporting date, the right of use is still included in the amount of €322 thousand in investment properties. The disposal in the financial year relates to a leasehold property for Forum Wetzlar. As at the reporting date, operating and office equipment included right-of-use assets under leases amounting to €195 thousand. These result mainly from the rental of office space and the leasing of cars. Unrealised changes in market value related to appreciation and depreciation in accordance with IAS 40. 8. INVESTMENT PROPERTIES in € thousand 2020 2019 Carrying amount at 1 January 3,822,786 3,891,700 Addition from right-of-use assets (IFRS 16) Additions Disposals Recognised construction measures Unrealised changes in fair value 0 0 -490 15,053 -400,204 322 0 0 19,324 -88,560 CARRYINg AmOUNT AT 31 dECEmbER 3,437,145 3,822,786 The fair values of the properties in the period under review as at 31 December 2020 were determined by appraisers from Jones Lang LaSalle GmbH (JLL) in accordance with the guidelines of the Royal Institution of Chartered Surveyors (RICS). As in previous years, the discounted cashflow method (DCF) was used. The remuneration fixed contractually for the appraisal reports prior to preparation of the appraisals is independent of the measurement gain / loss. This method entails the calculation of the present value of future cash flows from the property in question as at the valuation date. In addition, the net income from the property in question is determined over a detailed planning period of (usually) ten years and a discount rate applied. A residual value is forecast for the end of the ten-year detailed planning phase by capitalising the stabilised cash flows of the last budgeted year using an interest rate (the capitalisation inter- est rate). In a second step, the residual value is discounted back to the measurement date. 4 6 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes 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 2020: 9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD IFRS 13 hierarchy levels in € thousand Level 1 Level 2 Level 3 Investment properties 0 0 3,437,145 The properties are secured by mortgages. There are land charges in the amount of €1,541,428 thousand (previous year: €1,512,347 thou- sand). The rental income of the properties valued in accordance with IAS 40 was €224,104 thousand (previous year: €231,487 thousand). Directly associated operating expenses (excluding write-downs) amounted to €28,288 thousand (previous year: €28,301 thousand). in € thousand 2020 2019 Carrying amount at 1 January 511,493 531,044 Distributions and capital repayments received Share of profit / loss CARRYINg AmOUNT AT 31 dECEmbER -15,494 -51,482 -23,896 4,345 444,517 511,493 Joint ventures in which Deutsche EuroShop AG has a majority of the voting rights together with third parties are included in the consoli- dated financial statements in accordance with the equity method. They are important for the Group as a whole and operate shopping centers. The joint ventures material to the overall Group posted the follow- ing asset and liability items and income items for the reporting year. The values do not correspond to the share attributable to the Group, but the total amounts: in € thousand Non-current assets Current assets thereof cash and cash equivalents Non-current liabilities thereof financial liabilities Current liabilities thereof financial liabilities Revenue 1 Net interest income EBT (excl. measurement gains / losses) Measurement gains / losses Taxes on income and earnings Net loss /profit for the year Other income TOTAL PROFIT Allee-Center Magdeburg KG, gesellschaft FEZ Harburg, Stadt-Galerie Passau KG, Hamburg Hamburg Hamburg Immobilienkommandit- 31.12.2020 31.12.2019 31.12.2020 31.12.2019 31.12.2020 31.12.2019 219,760 245,871 227,266 263,888 159,340 173,350 5,204 3,319 0 0 1,230 0 16,315 0 11,960 -27,025 0 -15,065 0 -15,065 3,698 2,721 0 0 1,081 0 16,473 0 13,684 -7,636 0 6,048 0 6,048 8,749 4,939 67,279 67,279 53,780 50,709 14,166 -3,611 5,746 -37,534 0 -31,788 0 -31,788 5,279 4,502 117,356 117,356 4,355 2,581 14,821 -3,663 8,949 -10,581 0 -1,632 0 -1,632 4,842 2,654 0 0 965 0 9,390 7 6,450 -15,362 0 -8,912 0 -8,912 4,598 3,319 0 0 544 0 9,766 0 8,589 -9,971 0 -1,382 0 -1,382 1 The disclosure within NOI was changed in the year under review and the previous year’s figures have been adjusted for easier comparability. The previous year’s figures for revenue were adjusted accordingly. Please refer to the information in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. 4 8 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes 10. TRADE RECEIVABLES 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. 2020 40,957 -2,484 908 -19,559 -21,135 19,822 2019 9,901 -1,721 455 -1,218 -2,484 7,417 Receivables result primarily from rental invoices and services for which charges are passed on. The trade receivables recognised at the reporting date are partially protected by means of guarantees, cash security deposits and letters of comfort. As a result of the coronavirus pandemic, some tenants did not make their payments in full in the year under review, which led to a signifi- cant increase in receivables. The measurement of receivables as of 31 December 2020 and the derecognition of receivables during the year resulted in total expenses of €29,218 thousand (previous year: €1,674 thousand). This expense includes the derecognition of €8,564 thousand in receivables from tenants with whom the Group reached written agreements in 2020 by means of addenda on rental concessions to be granted. In addition, further receivables of €886 thousand were derecognised with an effect on income. If no written agreement had been reached with the tenants by the reporting date regarding the receivables that are outstanding due to the coronavirus, these receivables were written down to the expected settlement amount. The settlement amount was estimated based on insights from discussions with the tenant concerned, experience gained through comparable negotiations already con- cluded and industry expectations. Although we consider this esti- mator to be a reliable measure of value, it cannot be ruled out that the actual settlement amount will deviate from it. Based on this esti- mate, write-downs of €14,714 thousand were recognised in financial year 2020. In addition, individual write-downs of €5,054 thousand were recognised for receivables at risk of default, taking into account recoverable collateral. At the time the consolidated financial statements were prepared, only around 50% of the receivables had been settled due to ongo- ing negotiations with tenants and uncertainty at the beginning of the year as to how long the renewed lockdown would last in the individual countries. Taking into account the collateral provided and the current status of negotiations with tenants, we continue to con- sider the valuation of the receivables to be appropriate, but also refer to section “38. Events after the reporting date”. 11. OTHER CURRENT ASSETS in € thousand 31.12.2020 31.12.2019 Other receivables from tenants Other current assets 2,180 15,625 17,805 3,453 11,193 14,646 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. Receivables in € thousand Trade receivables Other assets (PREVIOUS YEAR’S FIgURES) Total Up to 1 year Over 1 year 19,822 (7,417) 17,805 (14,646) 19,822 (7,417) 17,805 (14,646) 37,627 (22,063) 37,627 (22,063) 0 (0) 0 (0) 0 (0) Trade receivables (after write-downs) were mainly overdue as of the reporting date due to the coronavirus pandemic. As in the previous year, other assets were not overdue as of the reporting date. 5 0 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes Discounts are amortised over the term of the loan. In the year under review, €28 thousand (previous year: €29 thousand) was recognised as an expense in the income statement. A total of €43,716 thousand (previous year: €49,256 thousand) was recognised in financial gains / losses as interest expense for bank loans and overdrafts. 14 of the 20 loan agreements currently contain arrangements regarding covenants. There are a total of 25 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 were met in the 2020 financial year. In the case of one loan of €57.5 million, there is sufficient evidence that an individual loan condition may not be met in 2021 which, depending on the extent of failure to meet the condition, may trigger an annual special repayment of 0.5% to 1.0% of the loan amount or a prohibi- tion on distribution for the Group company (cash sweep). The Group company concerned has sufficient cash and cash equivalents to meet this condition. For the other loans, the loan conditions will also be met in 2021 according to current planning. With regard to planning uncertainties related to the coronavirus pandemic, please refer to section “38. Events after the reporting date”. Non-current and current financial liabilities arose from the following changes affecting liquidity and not affecting liquidity: in € thousand 2020 2019 Carrying amount at 1 January 1,512,347 1,522,393 Changes affecting liquidity 29,034 -10,526 15. OTHER NON-CURRENT AND CURRENT FINANCIAL LIABILITIES in € thousand Interest rate swaps Rental deposits Other liabilities to tenants Value added tax Debtors with credit balances Lease liabilities Other 31.12.2020 31.12.2019 Non- current 26,138 0 0 0 0 475 238 Current Non- current Current 0 33,059 3,608 7,491 2,364 3,047 44 727 0 0 0 0 502 302 0 3,286 8,979 1,870 1,334 82 1,285 26,851 17,281 33,863 16,836 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 €26,138 thousand as at the reporting date (previous year: €33,059 thousand). Other liabilities to tenants mainly comprise liabilities for heating and ancillary costs as well as prepaid rent. Changes not affecting liquidity Change in carrying amount under the effective interest rate method 47 Liabilities in € thousand Financial liabilities 480 CARRYINg AmOUNT AT 31 dECEmbER 1,541,428 1,512,347 Trade payables Tax liabilities Other liabilities Total Current Non-current 1,541,428 (1,512,347) 181,816 (78,974) 1,359,612 (1,433,373) 3,303 (5,805) 456 (1,401) 44,132 (50,699) 3,303 (5,805) 456 (1,401) 17,281 (16,836) 0 (0) 0 (0) 26,851 (33,863) (PREVIOUS YEAR’S FIgURES) 1,589,319 (1,570,252) 202,856 (103,016) 1,386,463 (1,467,236) 52 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes NOTES TO THE CONSOLIDATED INCOME STATEMENT 19. REVENUE 20. PROPERTY OPERATING COSTS in € thousand 2020 2019 in € thousand 2020 2019 Minimum rental income 215,582 223,305 Allocable property tax and insurance Turnover rent Other of which directly attributable rental income in accordance with IAS 40 Investment Properties 5,704 950 1,868 5,546 2,157 479 224,104 231,487 224,104 231,487 Operating costs that cannot be passed on Real property tax Center marketing Building insurance Maintenance and repairs Other 6,419 5,366 2,755 1,437 1,382 1,222 4,792 5,324 3,137 1,602 1,658 975 18,581 17,488 18,581 17,488 of which directly attributable operating expenditure in accordance with IAS 40 Investment Properties In contrast to the previous year, the costs of building insurance and property tax passed on are no longer shown netted against property operating costs and are included in the minimum rental income. The previous year’s figure has been adjusted. Please refer to the infor- mation in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. Other revenue relates primarily to settlement payments made by former tenants as well as compensation for use. 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 following maturities: In contrast to the previous year, the costs that are transferred for building insurance and property tax are no longer shown netted against the property operating costs. In addition, expenses from the disposal of financial assets and write-downs are reported separately in the consolidated income statement. The previous year’s figure has been adjusted. Please refer to the information in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. Ancillary costs which cannot be fully allocated are essentially operat- ing costs which cannot be completely passed on to tenants as well as heating and ancillary costs in arrears for preceding years. 2019 21. PROPERTY MANAGEMENT COSTS in € thousand Center management / agency agreement costs of which directly attributable operating expenditure in accordance with IAS 40 Investment Properties 2020 2019 9,707 10,813 9,707 10,813 Center management /agency agreement costs depend to a large extent on the rental income generated. in € thousand Maturity within 1 year Maturity from 1 year to 5 years Maturity after 5 years 2020 196,624 499,681 180,965 214,984 534,810 161,189 877,270 910,983 5 4 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes 27. TAXES ON INCOME AND EARNINGS 28. EARNINGS PER SHARE in € thousand Current tax expense Domestic deferred tax income International deferred tax income /expense 2020 -4,267 46,545 8,763 51,041 2019 in € thousand 2020 2019 -4,546 75,596 -1,631 69,419 Group shareholders’ portion of profits / losses (€ thousand) Weighted number of no-par-value shares issued -251,717 112,091 61,783,594 61,783,594 UNdILUTEd ANd dILUTEd EARNINgS PER SHARE (€) -4.07 1.81 The deferred tax income mainly results from the depreciation of the real estate assets in the year under review. In the previous year, deferred tax expense included income from the reversal of deferred trade tax of €73,410 thousand. This reversal was the result of a corporate restructuring of individual investments completed during the previous year, which will enable the extended trade tax reduction to be used to a greater extent than before. Basic earnings per share are determined by dividing the net income for the period to which shareholders of Deutsche EuroShop AG are entitled by the weighted average number of shares outstanding within the reporting period. There is no potential dilution as at the reporting date, e.g. through convertible bonds or share options, with the result that diluted earnings correspond to undiluted earnings. Tax reconciliation Income taxes in the amount of €51,041 thousand in the year under review are derived as follows from an expected income tax expense that would have resulted from the application of the parent company’s statutory income tax rate to the profit before tax. This was calculated using a tax rate of 32.28%. in € thousand 2020 Consolidated profit before income tax -302,758 2019 42,672 Theoretical income tax 32.28% 97,730 -13,775 Tax rate differences for foreign Group companies Tax rate differences for domestic Group companies Tax-free income /non-deductible expenses Tax effect from investments accounted for under the equity-accounted method Aperiodic tax expense / income Reversal of deferred trade tax CURRENT INCOmE TAX -6,498 3,999 -38,658 -1,988 -140 -408 -1,391 -2 0 51,041 1,342 6,839 73,410 69,419 Ignoring tax expenses/income for other periods and the reversal of deferred trade tax, the effective income tax rate in financial year 2020 was 16.8%. 5 6 Financial Repor t 2020 / Deutsche EuroShop

Total Reconciliation 01.01. – 31.12.2019 246,286 213,330 0 16 -49,116 164,579 -14,799 -15,861 4,345 2,729 -140 -1,448 231,487 197,469 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 CONSOLIdATEd FINANCIAL STATEmENTS / Notes in € thousand Revenue 1 EBIT Profit / losses of joint ventures and associates Interest income Interest expense EbT (EXCL. mEASUREmENT gAINS / LOSSES) Domestic 201,917 172,556 0 9 -41,983 130,932 Abroad 44,369 40,774 0 7 -7,133 33,647 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 1 The disclosure within NOI was changed in the year under review and the previous year’s figures for segment sales have been adjusted for easier comparability. Please refer to the information in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. The adjustment of the proportionate consolidation of the joint ven- tures and subsidiaries in which the Group does not own a 100% stake is carried out in the reconciliation column. Deferred tax liabilities are considered by the Executive Board of Deutsche EuroShop AG in a cross-segment manner and are therefore included in the reconcilia- tion column of the segment liabilities. Accordingly, the goodwill from the acquisition of Olympia Brno was allocated to the reconciliation column of the segment assets. The reconciliation column also con- tains the companies that are not allocated to either of the two seg- ments (Deutsche EuroShop AG, DES Management GmbH, DES Beteili- gungs GmbH & Co. KG). These do not generate any revenue and are included in the reconciliation column after intra-Group eliminations with their EBIT of €-4,882 thousand (previous year: €-4,046 thou- sand) and EBT (excl. measurement gains / losses) of €-5,193 thou- sand (previous year: €-1,319 thousand) as well as in the segment assets with €86,260 thousand (previous year: €70,435 thousand) and in the segment liabilities with €2,178 thousand (previous year: €3,971 thousand). In view of the geographical segmentation, no further information pursuant to IFRS 8.33 is given. 5 8 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes Carrying amounts, valuations and fair values according to measurement category With the exception of derivative financial instruments and other financial investments measured at fair value, financial assets and liabilities are measured at amortised cost. Due to the predominantly short-term nature of trade receivables, other assets and liabili- ties and cash and cash equivalents, the carrying amounts as at the reporting date do not deviate significantly from the fair values. The fair values of financial liabilities measured at amortised cost correspond to the cash values of debt-related payments based on current interest rate yield curves (Level 2 in accordance with IFRS 13). The derivative financial instruments measured at fair value are inter- est rate hedges. Here the fair value is equivalent to the cash value of future net payments expected to be received from hedging trans- actions (Level 2 in accordance with IFRS 13) based on current yield curves. Risk management In risk management, the emphasis is on ensuring compliance with the strategy and, building on this, on identifying and assessing risks and opportunities, as well as on the fundamental decision to man- age these risks. Risk management ensures that risks are identified at an early stage and can then be evaluated, communicated promptly and mitigated. Risk analysis involves the identification and analysis of factors that may jeopardise the achievement of goals. Market risks Liquidity risk The liquidity of the Deutsche EuroShop Group is continuously moni- tored and planned. The subsidiaries regularly have sufficient cash to be able to pay for their current commitments. A short-term credit line of €150,000 thousand may be used if required. As at 31 December 2020, €30,000 of the credit line had been used. The credit line is partially secured. The contractually agreed future interest and principle repayments of the original financial liabilities and derivative financial instruments are as follows as at 31 December 2020: In € thousand Bank loans and overdrafts Carrying amount 31.12.2020 Cash flows 2021 Cash flows 2022 to 2025 Cash flows from 2026 1,541,428 219,953 625,259 872,270 The amounts relate to all contractual commitments existing as at the reporting date. The variable interest payments from interest rate hedges were determined on the basis of the most recently defined interest rates prior to 31 December 2020. The majority of the trade payables and other financial liabilities reported at the end of the financial year will fall due in 2021. Credit and default risk The Group is exposed to significant default risks in respect of trade receivables that, for reasons related to the coronavirus pandemic, had not been settled in full by the time the financial statements were prepared (please also refer to section “10. Trade receivables”). Write-downs on trade receivables are determined on the basis of the credit losses expected over the term. Unless the reasons for doing so can be refuted in individual cases, receivables that are more than 90 days overdue, taking into account the collateral provided by the tenant and valuable collateral, are written down fully. In addition, if information exists that points to an increased risk of default for a tenant, checks are made to decide whether receivables that are less than 90 days overdue should also be written down. In addition, receivables for which it is expected that a written agreement regard- ing rent concessions will still be reached, the write-down was meas- ured on the basis of the expected amount of the assistance. During the year under review, write-downs of rent receivables in the amount of €29,218 thousand (previous year: €1,674 thousand) were recog- nised under expenditure. The maximum default risk in relation to trade receivables and other assets totalled €37,627 thousand as at the reporting date (previous year: €22,063 thousand). 6 0 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes 34. DECLARATION OF CONFORMITY WITH THE GERMAN CORPORATE GOVERNANCE CODE The Declaration of Conformity with the German Corporate Gov- ernance Code required by section 161 of the Aktiengesetz (AktG – German 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/Declaration-of-Conformity 35. RELATED PARTIES FOR THE PURPOSES OF IAS 24 Deutsche EuroShop’s subsidiaries, joint ventures and associates as well as the members of its Executive Board and Supervisory Board and their close family members are regarded as related parties for the purposes of IAS 24. The remuneration of the Supervisory Board and the Executive Board is described in section “37. Supervisory Board and Executive Board” and also in the remuneration report portion of the combined management report. In his position as a member of the Supervisory Board of Deutsche EuroShop, Mr Alexander Otto is considered a related party within the meaning of IAS 24. Thus, the ECE Group and Curatax, both of which are controlled by Mr Alexander Otto, are also considered related parties. Fees for service contracts with these two companies totalled €19,209 thousand (previous year: €17,716 thousand). This amount was partially offset by income from leases and mall market- ing with the ECE Group in the amount of €8,214 thousand (previous year: €7,627 thousand). Receivables from the ECE Group came to €4,456 thousand, while liabilities were €965 thousand. Transactions with related parties involving the provision of goods and services were at standard market rates. 36. VOTING RIGHTS NOTICES In line with section 160 (1) no. 8 AktG, we give notice that the follow- ing investments and changes to voting rights have been registered to Deutsche EuroShop AG in conformity with the duty of disclosure in accordance with section 33 of the Wertpapierhandelsgesetz (WpHG – Securities Trading Act). The disclosures were taken from the latest notice by those subject to reporting requirements. It should be noted that the number of voting rights might have since changed within the respective thresholds, with no reporting obligation arising: Shareholding report as at Event … (in %) New voting share (in %) of which held as treasury shares (in %) of which indirectly attributable (in %) 3.37 15.05 5.02 2.60 20.02 3.03 2.64 5.14 0.01 1.12 0.00 0.00 0.00 0.57 0.00 0.00 0.00 0.00 2.25 15.05 5.02 2.60 19.45 3.03 2.64 1 5.14 0.01 2 Shareholder Johannes Schorr AROSA Vermögensverwaltungs- gesellschaft m.b.H., Hamburg State Street Corporation, Boston, MA, United States of America 08.02.2016 … exceeds threshold (3) 15.12.2017 … exceeds threshold (15) 11.03.2019 … exceeds threshold (5) DWS Investment GmbH, Frankfurt 29.04.2020 … falls below threshold (3) Alexander Otto 01.10.2020 … exceeds threshold (20) AXA S.A., Paris, France 24.11.2020 … exceeds threshold (3) BlackRock, Inc., Wilmington, DE, United States of America PGGM Coöperatie U.A., Zeist, Netherlands 22.12.2020 … falls below threshold (3) 11.01.2021 … exceeds threshold (5) The Goldman Sachs Group, Inc., Wilmington, DE, United States of America 01.02.2021 ... falls below threshold (3) 1 We were also notified by BlackRock, Inc. of a securities lending transaction (0.62%) and contracts for differences (0.0001%). 2 In addition, we were notified of a securities lending transaction (1.57%), a SWAP (0.13%) and contracts for differences (2.31%) by The Goldman Sachs Group, Inc. All voting rights notices received by Deutsche EuroShop AG can be found on the website of Deutsche EuroShop AG under Investor Rela- tions > Share > Significant voting interests. 62 Financial Repor t 2020 / Deutsche EuroShop

CONSOLIdATEd FINANCIAL STATEmENTS / Notes 38. EVENTS AFTER THE REPORTING DATE In order to contain the coronavirus pandemic, the authorities con- tinued to implement far-reaching safety and quarantine measures at the beginning of 2021, including the closure of retail stores that do not serve basic needs. There are only exceptions for food, drug- stores, pharmacies, banking services and a limited number of other everyday products and services. The ongoing safety and quarantine measures in the various countries during the period are as follows: For Germany, the decision was taken on 3 March 2021 to continue the extensive retail closures in place since 16 December 2020. The resolution further provides that retailers will only be allowed to re open nationwide or regionally if a stable seven-day incidence rate of less than 50 new infections per 100,000 inhabitants has been achieved, however no earlier than 8 March. Retail purchases are possible by appointment with a three-day incidence rate of between 50 and 100. If the incidence rates exceed the limit of 100 following any steps of the re-opening strategy, an “emergency brake” will be applied, which calls for the rules regarding business closures as at 16 December 2020 to be reinstated. On 22 March 2021, it was decided that these rules should apply until at least 18 April 2021. In Poland, measures requiring the closure of shops in shopping centers, which have been in force since 28 December 2020, were lifted again on 1 February 2021, subject to conditions such as wearing a mask and observing limits on the number of customers allowed per square metre; they were then reimposed regionally from 13 March and from 20 March 2021 nationwide. The closure measures will apply at least until 9 April 2021. Widespread retail closures in the Czech Republic since 27 Decem- ber 2020 became even stricter effective 1 March 2021, and the list of shops allowed to remain open has been shortened even further. As of 8 February 2021 and subject to certain conditions, Austria has cancelled shop closures that had been in force since 26 December 2020. Hungary closed its retail shops for the first time from 8 March 2021. Even prior to that, however, catering operations had only been possible to a limited extent (take-away) and retailers had to observe the applicable protective measures, such as restrictions on opening hours and mask requirements. The closures, which extend well into 2021, have further exacerbated the economic situation of the tenants affected. For many tenants, the Christmas season was heavily impacted by the closures in late autumn and the renewed closures from mid-December 2020. The states’ support programmes were either unable to compensate for this or only to a limited extent. Deutsche EuroShop is in continued dialogue with tenants via its service provider, ECE, in order to arrange support measures. Among other things, at the beginning of 2021 the affected tenants of the German shopping centers were made a regular offer under which half of the net rent excluding ancillary costs would be waived for the duration of the closure since mid-December 2020 and for all further closures in 2021. While the federal government has suspended the requirement to file for bankruptcy in the event of pandemic-related insolvency and over-indebtedness in an effort to mitigate the effects of the corona- virus pandemic and has now extended this exemption to the end of April 2021, there is still a risk of further tenant insolvencies. More tenants have already filed for insolvency or announced branch closures in 2021. This may necessitate additional write-downs on the receivables reported as at the reporting date. Tenants’ losses and continued shop closures in individual countries may have an impact on the valuation of our shopping centers. Please refer to the sensi- tivity analysis in section “8. Investment properties”. No further significant events occurred between the reporting date and the date of preparation of the financial statements. Hamburg, 25 March 2021 Deutsche EuroShop AG The Executive Board Wilhelm Wellner Olaf Borkers 6 4 Financial Repor t 2020 / Deutsche EuroShop

RESPONSIbILIT Y STATEmENT bY THE EXECUTIVE bOARd RESPONSIBILITY STATEMENT BY THE EXECUTIVE BOARD We declare that to the best of our knowledge, in line with the accounting policies to be applied, the consolidated financial state- ments present a true and fair view of the net assets, financial position and results of operations of the Group and the combined management report presents the situation of the Group and the course of business including business performance which is a fair and accurate view, and describes the essential opportunities and risks of the likely development of the Group. Hamburg, 25 March 2021 Wilhelm Wellner Olaf Borkers 6 6 Financial Repor t 2020 / Deutsche EuroShop

INdEPENdENT AUdITOR’S REPORT We identified the following as key audit matters: 1. Measurement of investment properties 2. Accounting of rental concessions granted in connection with the coronavirus pandemic and their effect on revenue recognition 3. Recognition and measurement of deferred taxes 1. MEASUREMENT OF INVESTMENT PROPERTIES Matter Deutsche EuroShop AG reported investment properties totalling €3,437.1 million in its consolidated financial statements as at 31 De - cember 2020 and holds a participating interest in further material investment properties through its stakes in joint ventures and asso- ciates (€584.1 million). The shopping center properties held as investment property are measured at fair value in accordance with IAS 40. In financial year 2020, expenses from this measurement of €400.2 million were recognised in the income statement. In addi- tion, the profit / loss of equity-accounted joint ventures and associ- ates included a measurement loss of €73.8 million. The respective fair value measurements of investment proper- ties in accordance with IFRS 13 are determined on the basis of the discounted cash flow method by one of the external apprais- ers appointed by Deutsche EuroShop AG. They are level 3 measure- ments pursuant to IFRS 13 that are based on input factors not mate- rially observable on the market. Forecasts about future cash flows from rental income and management, maintenance and adminis- trative costs as well as the derivation of the capitalisation interest rate involve significant decisions based on personal judgement and estimates. Due to the coronavirus pandemic, forecasting future cash flows is subject to elevated uncertainty. In particular, the medium to long- term effects of the pandemic on consumer shopping behaviour and the future growth of shopping centers are difficult to assess from today’s perspective. Due to the significance of the investment properties for the consoli- dated financial statements of Deutsche EuroShop AG in terms of their amount and the significant uncertainties associated with their measurement, this is a key audit matter of particular importance. The disclosures provided by Deutsche EuroShop AG on the measure- ment of investment properties are included in 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 obtained an understanding of the selection and application of the methods, significant assumptions and data upon which the apprais- er’s valuation was based and tested the appraisals on a sample basis as to the appropriateness, consistency and proper implementation of the valuation methodology and the accuracy of the inputs (leased space and rental income). In addition, we conducted three center vis- its in financial year 2020. We furthermore acknowledged the pro- jected 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. We had the assumptions contained in the forecasts regarding the effects of the coronavirus pandemic on the future growth of the shopping centers explained to us by the Executive Board and the appraiser, compared them with published industry expectations and analyses, and verified their inclusion in the measurement. In performing the audit, we consulted internal specialists in the field of real estate valuation. 2. ACCOUNTING OF RENTAL CONCESSIONS GRANTED IN CONNECTION WITH THE CORONAVIRUS PANDEMIC AND THEIR EFFECT ON REVENUE RECOGNITION Matter In accordance with IFRS 16.81, the Group recognises revenue from operating leases for shopping centers on a straight-line basis over the contractually agreed lease term. A prerequisite for the recog- nition of revenue is that the Group has a civil law claim to the rent under the lease. In financial year 2020, due to the lockdown measures many tenants nationally and internationally did not meet their obligation to pay rents as contractually agreed. In some countries there are legal pro- visions, or legal provisions have been enacted, that provide for tem- porary deferral, suspension or reduction of rental payments. 6 8 Financial Repor t 2020 / Deutsche EuroShop

RESPONSIBILITY OF THE LEGAL REPRESENT- ATIVES AND SUPERVISORY BOARD FOR THE CONSOLIDATED FINANCIAL STATEMENTS AND COMBINED MANAGEMENT REPORT The legal representatives are responsible for preparing the consoli- dated financial statements 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, and for ensuring that the consol- idated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group in accord- ance with these requirements. Further, the legal representatives are responsible for any internal control they deem relevant to prepara- tion of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the legal repre- sentatives are responsible for assessing the Group’s ability to con- tinue as a going concern, disclosing, as applicable, matters related to going concern. In addition, they are responsible for recognising the ability to continue as a going concern on the going concern basis of accounting, unless there is an intent to liquidate the Group or dis- continue business operations or there is no realistic alternative to these options. Furthermore, the legal representatives are responsible for prepar- ing a combined management report that as a whole provides a suita- ble understanding of the Group’s position, is consistent with the con- solidated financial statements in all material respects, complies with the provisions of German law and suitably presents the opportunities and risks of future development. The legal representatives are also responsible for any precautions and measures (systems) they deem necessary to enable the combined management report to be pre- pared 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. The supervisory board is responsible for monitoring the Group’s accounting process for the preparation of the consolidated financial statements and combined management report. INdEPENdENT AUdITOR’S REPORT Auditor’s review We acknowledged the calculation of deferred taxes with respect to their compliance with IAS 12. We also analysed the confirmation let- ter of the tax consultant. We are satisfied with the competence and independence of the tax consultant assisting Deutsche EuroShop AG in the determination of deferred taxes. We also examined the deter- mination method used to measure and report deferred taxes, whereby we compared the values used with the tax calculations of the company and the tax consultant by means of samples and ver- ified the validity of the tax bases utilised. In auditing the deferred taxes, we consulted internal specialists in the field of deferred taxes. OTHER INFORMATION The Executive Board and Supervisory Board are responsible for other information. This includes: • • • • the separately published declaration on corporate governance referred to in the section “Declaration on corporate governance” of the combined management report, the Corporate Governance Report referred to in the “Declaration on corporate governance” section of the combined management report pursuant to No. 3.10 of the Deutscher Corporate Govern- ance Kodex (DCGK – German Corporate Governance Code), the other sections of the annual report, with the exception of the audited consolidated financial statements and combined management report as well as our auditor’s report, the responsibility statement in accordance with section 297 (2) sentence 4 HGB for the consolidated financial statements and responsibility statement in accordance with section 315 (1) sentence 5 HGB for the combined management report. Our opinion on the consolidated financial statements and combined management report does not extend to the other information and we do not provide an opinion or any other form of audit conclusion in this regard. In connection with our audit of the consolidated financial statements, we have a responsibility to read the other information and determine whether the other information • contains material discrepancies with the consolidated financial statements, combined management report or the knowledge acquired through our own audit, or • appears to be misstated in any other way. If, on the basis of the work we have carried out, we conclude that this other information contains a material misstatement, we are obliged to report this. We have nothing to report in this regard. 70 Financial Repor t 2020 / Deutsche EuroShop

INdEPENdENT AUdITOR’S REPORT We communicate with those responsible for monitoring regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any deficiencies in internal con- trol that we identify during our audit. We provide those responsible for monitoring with a statement that we have fulfilled the relevant independence requirements and com- municate with them regarding all relationships and other matters which might reasonably be considered to have an effect on our inde- pendence as well as the associated precautions taken. From the matters communicated with those responsible for moni- toring, we determine those matters that were of most significance in the audit of the consolidated financial statements for the cur- rent reporting period and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regula- tion precludes public disclosure about the matter. OTHER APPLICABLE LEGAL REQUIREMENTS Note on the audit of the electronic reproductions of the consolidated financial statements and the combined management report prepared for disclosure purposes in accordance with section 317 (3b) HGB Audit opinion In accordance with section 317 (3b) HGB, we have performed a rea- sonable assurance audit to determine whether the reproductions of the consolidated financial statements and the combined man- agement report (hereinafter also referred to as “ESEF documents”) contained in the attached file [DESAG_KA20_ESEF.zip: 62965c0308 ca5c579ff79fcc152f13844b3ed7d325c5e66f522a9f199 395cdb4] and prepared for disclosure purposes comply in all material respects with the electronic reporting format (“ESEF format”) requirements of section 328 (1) HGB. In accordance with German legal require- ments, this audit extends only to the conversion of the information contained in the consolidated financial statements and the combined management report into ESEF format and therefore neither to the information contained in these reproductions nor to any other infor- mation contained in the aforementioned file. In our opinion, the reproductions of the consolidated financial state- ments and the combined management report contained in the afore- mentioned attached file and prepared for the purpose of disclosure comply in all material respects with the electronic reporting format requirements of section 328 (1) HGB. Other than this opinion and our opinions on the accompanying consolidated financial statements and the accompanying combined management report for the finan- cial year from 1 January 2020 to 31 December 2020 included in the “Report on the audit for the consolidated financial statements and combined management report” above, we do not express any opinion on the information included in these reproductions or on the other information included in the aforementioned file. Basis for the audit opinion We conducted our audit of the reproductions of the consolidated financial statements and the combined management report con- tained in the aforementioned attached file in accordance with sec- tion 317 (3b) HGB, taking into account the draft IDW Auditing Stand- ard: Audit of electronic reproductions of financial statements and management reports prepared for disclosure purposes in accord- ance with section 317 (3b) HGB (IDW EPS 410). Our responsibility thereunder is further described in the section “Auditor’s responsibil- ity for the audit of the ESEF documents”. Our auditing practice meets the requirements of the quality assurance system of the IDW quality assurance standard: Requirements for quality assurance in auditing practice (IDW QS 1) were applied. Responsibility of the Executive Board and Supervisory Board for the ESEF documents The Executive Board is responsible for the preparation of the ESEF documents containing the electronic reproductions of the consoli- dated financial statements and the combined management report in accordance with section 328 (1) sentence 4 no. 1 HGB and for the marking up of the consolidated financial statements in accordance with section 328 (1) sentence 4 no. 2 HGB. Furthermore, the Company’s management is responsible for such internal controls as management determines is necessary to ena- ble the preparation of ESEF documents that are free from material non-compliance, whether due to fraud or error, with the electronic reporting format requirements of section 328 (1) HGB. The Executive Board of the Company is also responsible for submit- ting the ESEF documents together with the auditor’s report and the attached audited consolidated financial statements and audited com- bined management report and other documents to be disclosed to the operator of the German Federal Official Gazette. The Supervisory Board is responsible for overseeing the preparation of the ESEF documents as part of the financial reporting process. 72 Financial Repor t 2020 / Deutsche EuroShop

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 version1 of the EPRA Best Practice Recommenda- tions (hereinafter “BPR”) was used to determine the key figures. The current revised version of the BPR was published in October 2019. A key change is the introduction of three net asset value metrics, replacing the previous key figures EPRA NAV and EPRA NNNAV. OVERVIE W OF EPR A KE Y FIGURES EPRA earnings EPRA NRV EPRA NTA EPRA NDV 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 31.12.2020 31.12.2019 Change in € thousand per share in € in € thousand per share in € 124,536 2,540,009 2,309,711 1,934,235 2,309,724 1,934,235 2.02 41.11 37.38 31.31 37.38 31.31 158,260 2,868,630 2,613,365 2,139,458 2,613,390 2,139,458 2.56 46.43 42.30 34.63 42.30 34.63 + / - in € thousand -33,724 -328,621 -303,654 -205,223 -303,666 -205,223 31.12.2020 31.12.2019 Change in % 5.3 5.4 27.3 26.6 4.6 in % 5.1 5.1 13.4 13.0 2.4 in % -21.3 -11.5 -11.6 -9.6 -11.6 -9.6 in % points 0.2 0.3 13.9 13.6 2.2 1 The currently valid version of the EPRA Best Practice Recommendations can be found at http://www.epra.com/finance/financial-reporting/guidelines 74 Financial Repor t 2020 / Deutsche EuroShop

EPR A REPORTINg NET ASSET VALUE – CHANGES IN EPRA KEY FIGURES The revised BPR introduced the following three new net asset value metrics to replace the previous key figures EPRA NAV and EPRA NNNAV: EPRA net reinstatement value (EPRA NRV): The EPRA NRV determines the long-term net asset value that would be required to rebuild the entity in this form. This approach excludes sales of assets and consequently does not include deferred taxes. The ancillary acquisition costs needed to rebuild the entity are added back at their appraisal value. EPRA net tangible assets (EPRA NTA): In the case of Deutsche EuroShop, the EPRA NTA is comparable to the EPRA NAV used previously and represents the net asset value based on a long-term business model. To do so, Group equity is adjusted for assets and liabilities that are unlikely to be realised if EPR A NE T A SSE T VALUE ME TRIC A S AT 31.12.2020 held over the long term. In contrast to the EPRA NAV, the EPRA NTA does not take account of intangible assets and provides three options for the recognition or non-recognition of deferred taxes. As with the EPRA NAV, Deutsche EuroShop does not include deferred taxes when calculating the EPRA NTA because Deutsche EuroShop’s business model is geared towards generating long-term rental income rather than selling shopping centres for short-term profit. EPRA net disposal value (EPRA NDV): The EPRA NDV indicates the net asset value that would result if the assets and liabilities were not held to maturity. The EPRA NDV thus also factors in assets and liabilities measured at fair value as at the reporting date, which are unlikely to be realised taking a long- term view. In addition, it is assumed that the deferred taxes from the balance sheet and from the fair value measurement of the financial liabilities will be realised and will therefore have to be deducted. For comparison purposes, the three new EPRA key figures are com- pared with the key figures used previously. in € thousand Equity new EPRA key figures previous EPRA key figures EPRA NTA EPRA NRV EPRA NDV EPRA NAV EPRA NNNAV 2,003,246 2,003,246 2,003,246 2,003,246 2,003,246 Derivative financial instruments measured at fair value1 26,138 26,138 Deferred taxes on investment properties and derivative financial instruments 1 Goodwill as a result of deferred taxes Intangible assets Difference between non-accounted financial liabilities measured at fair value and their carrying amount 1 Deferred taxes on difference between non-accounted financial liabilities measured at fair value and their carrying amount 1 332,059 -51,719 -13 332,059 -51,719 26,138 332,059 -51,719 -51,719 -21,677 4,385 -51,719 -21,677 4,385 Less ancillary acquisition costs 1 230,285 Number of no-par-value shares issued as at the reporting date 61,783,594 61,783,594 61,783,594 61,783,594 61,783,594 per share in € 37.38 41.11 31.31 37.38 31.31 2,309,711 2,540,009 1,934,235 2,309,724 1,934,235 1 Including the share attributable to equity-accounted joint ventures and associates 76 Financial Repor t 2020 / Deutsche EuroShop

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 alloc- able 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 space1 Less ancillary acquisition costs 1 Market value investment properties (gross) Annualised rental income1 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 31.12.2020 31.12.2019 in € thousand in € thousand in € thousand in € thousand 3,437,145 584,591 3,822,786 654,206 4,021,736 -5,560 230,285 4,246,461 254,342 -27,452 226,890 631 227,521 5.3% 5.4% 4,476,992 -5,560 255,240 4,726,672 263,249 -22,041 241,208 742 241,950 5.1% 5.1% 1 Including the share attributable to equity-accounted joint ventures and associates 78 Financial Repor t 2020 / Deutsche EuroShop

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 31.12.2020 31.12.2019 Group at equity Total Group at equity Total 0 0 15,053 0 0 0 4,170 0 0 0 19,223 0 0 0 19,324 0 0 0 3,099 0 0 0 22,423 0 15,053 4,170 19,223 19,324 3,099 22,423 The increase in investments in portfolio properties was the result of investments in the center infrastructure and in new rental areas, as well as in the “At-your-service” and “Mail Beautification” invest- ment programmes started in financial year 2018 and continued dur- ing this financial year, which will further boost the attractiveness of the shopping centers. 8 0 Financial Repor t 2020 / Deutsche EuroShop

REPORT OF THE SUPER VISORY bOARd government-mandated protective measures on our tenants and on our Company. Within this context, we also held regular consultations focussing on liquidity planning for different scenarios. The corona- virus pandemic has accelerated the growth of online retail due to the imposed lockdown measures. The ongoing integration of online and offline retail thus constituted a central component of consultations, and the further integration of our shopping centers into the rap- idly developing omni-channel distribution network was once again assessed as strategically important for the positioning of our center portfolio. The development status of the corresponding digitalisation programme (“Digital Mall”) was discussed. 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 or 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. Regular discussions were conducted with the Executive Board regarding trends on the capital, credit, real estate and retail markets and the impact of these on the Company’s current and medium-term situation. The Executive Board and Supervisory Board examined various refinancing options. We received regular reports detailing the turnover trends 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. We also devoted a lot of attention last year to the expected and implemented legisla- tive changes that affect our Company. These included, in particular, those changes to mitigate the impact of the pandemic. In accordance with the requirements of the new Corporate Governance Code and ARUG II (Act Implementing the Second Shareholders’ Rights Direc- tive), we examined the creation of a new system of Executive Board remuneration. MEETINGS / TELEPHONE AND VIDEO CONFERENCES Financial year 2020 saw four regular meetings plus one special meeting due to the special challenges posed by the Covid-19 pan- demic. Although it was possible to hold the September meeting in person, the other meetings took place as telephone or video con- ferences. The Executive Committee met for one regular and four extraordinary meetings by conference call. The Audit Committee held four regular and two extraordinary meetings by conference call. No member of the Supervisory Board attended only half or fewer than half of the meetings of the Supervisory Board and the commit- tees on which they serve during the reporting year. You can find the individual attendance record of members of the Supervisory Board in meetings of the Supervisory Board and its committees in the fol- lowing overview: Supervisory Board Member since Appointment ends Plenary Executive Committee Audit Committee Total Reiner Strecker (Chairman) Karin Dohm (Deputy Chairwoman) Dr Anja Disput Henning Eggers Dr Henning Kreke Alexander Otto Claudia Plath Klaus Striebich Roland Werner 2012 2012 2019 2019 2013 2002 2019 2012 2015 2022 Annual General Meeting 2022 Annual General Meeting 2024 Annual General Meeting 2024 Annual General Meeting 2023 Annual General Meeting 2023 Annual General Meeting 2024 Annual General Meeting 2022 Annual General Meeting 2025 Annual General Meeting 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 5/5 – 5/5 – – – – – 6/6 6/6 – 6/6 – 1/1 – – – 100% 100% 100% 100% 100% 100% 100% 100% 100% 82 Financial Repor t 2020 / Deutsche EuroShop

REPORT OF THE SUPER VISORY bOARd COMMITTEES CORPORATE GOVERNANCE In February 2020 and February 2021, together with the Executive Board, we issued updated declarations of conformity in relation to the recommendations of the Government Commission pursu- ant to section 161 of the Aktiengesetz (German Public Companies Act – AktG) and made this permanently available on the Deutsche EuroShop AG website. A separate report on the implementation of the German Corporate Governance Code (DCGK) is included in this Annual Report. The members of the Supervisory Board and the Exec- utive Board declared in writing at the beginning of 2021 that no con- flicts of interest had arisen during financial year 2020. We have published a matrix of the powers of the members of the Supervisory Board in the “Declaration on Corporate Governance” in order to demonstrate transparency in this area as well. We regu- larly review the composition profile of the Supervisory Board and will adjust it if necessary. The Supervisory Board decided in 2017 that the Chairman of the Supervisory Board can conduct talks with investors on topics of relevance to the Supervisory Board in accordance with the recom- mendations of the DCGK and the “Principles for Dialogue between Investor and Supervisory Board”. No investor requested a meeting in 2020. Since the new election of the Supervisory Board on 12 June 2019, five of the total of nine members of the Supervisory Board have been independent. The Supervisory Board has established three committees: the Exec- utive Committee, the Audit Committee and the Capital Market Com- mittee. Each of the committees is made up of three members. The Executive Committee of the Supervisory Board functions simultane- ously as a nomination committee. Given the size of the Company and the number of Supervisory Board members, we still consider the number of committees and committee members to be appropriate. During the reporting period, the Executive Committee convened via a conference call in response to the pandemic on 17 March (extraor- dinary), 23 March (extraordinary), 30 March, 11 May (extraordinary) and 21 December 2020 (extraordinary). The Audit Committee met via a conference call in response to the pandemic on 19 March (extra- ordinary), 30 March and 3 April 2020 (extraordinary). In the extra- ordinary telephone conferences on 17 March (Executive Committee) and 19 March 2020 (Audit Committee), we held an intensive dialogue with the Executive Board on the possible ramifications of the corona- virus pandemic and the related uncertainties for the further devel- opment of our Company. The discussion also addressed the planned dividend for the 2019 financial year and thus the Executive Board’s proposal for the appropriation of profits for the 2019 annual finan- cial statements. We reached the decision with the Executive Board to suspend the dividend payment due to the high level of uncertainty regarding the scope and duration of the pandemic. In the presence of the auditors and the Executive Board, the Audit Committee dis- cussed the financial statements and the combined management report for Deutsche EuroShop AG and the Group in conference calls on 30 March and again on 3 April 2020 due to the rapidly changing coronavirus situation. The Audit Committee also discussed the quarterly statements and the half-year financial report with the Executive Board in conference calls on 11 May, 12 August and 11 November 2020; at all of these calls the Executive Board reported on the current situation in our shopping centers and the associated operational and financial impli- cations in these conferences as well. The Audit Committee issued the audit mandate to the auditor elected by the Annual General Meeting, monitored the services provided by the auditor and discussed the controls on the quality of the audit. 8 4 Financial Repor t 2020 / Deutsche EuroShop

CORPOR ATE gOVERNANCE CORPORATE GOVERNANCE 2020 AND DECLARATION ON CORPORATE GOVERNANCE Deutsche EuroShop is a transparent company that operates in accordance with a strategy geared towards long-term success. This focus on constancy is a key aspect of our corporate culture. Based on the legal and company-specific conditions governing manage- ment of a listed company, we strive to promote the trust of inves- tors, creditors, employees, business partners and the public in the management and supervision of our Company. This goal is consistent with the requirements of a demanding corporate governance sys- tem. In conformity with principle 22 of the Deutscher Corporate Gov- ernance Kodex (German Corporate Governance Code) as well as sec- tion 289f (1) of the Handelsgesetzbuch (HGB – German Commercial Code), this declaration contains a report by the Executive Board, also on behalf of the Supervisory Board, on corporate governance. OBJECTIVES AND STRATEGY The management focuses on investments in high-quality shopping centers in city centers and established locations offering the poten- tial for stable, long-term value growth. A key investment target is the generation of high surplus liquidity from leases in shopping centers, which is 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 of investment. Indexed and turnover-linked commercial rents form the basis to achieve the high earnings targets. The Company may invest up to 10% of equity in joint ventures in shopping center projects in the early stages of development. New investments must be financed from a balanced mix of sources, and borrowing may not account for more than 55% of financing across the Group over the long term. As a general rule, long-term interest rates are fixed when loans are taken out or renewed, with the goal of keeping the duration (average fixed interest period) at over five years. DIVERSIFIED SHOPPING CENTER PORTFOLIO Deutsche EuroShop AG holds a balanced, diversified portfolio of shopping centers in Germany and other parts of Europe. We focus our investment activities on prime (1a) locations in cities with a catchment area of at least 300,000 residents in order to guarantee a sustained high level of investment security. 8 6 Financial Repor t 2020 / Deutsche EuroShop

CORPOR ATE gOVERNANCE CORPORATE GOVERNANCE 2020 The Government Commission for the German Corporate Governance Code adopted a fundamentally amended German Corporate Govern- ance Code on 16 December 2019, which came into force on 20 March 2020. THE EXECUTIVE BOARD AND THE SUPERVISORY BOARD The Supervisory and Executive Boards performed their statutory duties in financial year 2020 in accordance with the applicable laws and the Articles of Association. The strategic orientation of the Com- pany was coordinated between the Executive Board and the Super- visory Board, and the progress of strategy implementation was dis- cussed at regular intervals. The Supervisory Board was informed regularly, promptly and in detail of business developments and the risk situation by the Executive Board. Detailed information on the main areas of focus of its activities in financial year 2020 can be found in its report in the Annual Report 2020 of Deutsche Euro- Shop AG. In financial year 2020, there were no advisory or other contracts for work or services in existence between members of the Supervisory Board and the Company. COMPOSITION AND DIVERSITY Supervisory Board In 2015, the Supervisory Board added a diversity concept to the goals specified in 2012 for its composition, both of which were confirmed in 2017 and last updated in 2019. The Supervisory Board gears itself towards the needs of a listed company with a small staff base which makes long-term investments with high capital requirements. In view of this, the intention is for the Supervisory Board to be primarily composed of independent members of both genders who have spe- cial knowledge and experience of the retail trade, the letting of retail space, the management of shopping centers, the equity and debt financing of listed real estate companies, of accounting principles and internal control processes in accordance with German and /or international regulations, and of corporate governance, law and busi- ness management. It is intended that the proportion of women on the Supervisory Board is at least 30%. The upper age limit for members of the Supervisory Board is 70. The Supervisory Board also takes the view that professional qualifications and skills should be the key criteria for its members. For that reason, no rule has been adopted as to the length of time for which members may serve on the board. Since 2015 the Company has disclosed the skills provided by the indi- vidual members of the Supervisory Board in the nomination process for the elections to the Supervisory Board. The current competence matrix is as follows: Reiner Strecker Karin Dohm Dr Anja Disput Henning Eggers Dr Henning Kreke Alexander Otto Claudia Plath Klaus Striebich Roland Werner Retail sector Real estate Business management Accounting Funding Capital market Law Corporate governance x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 8 8 Financial Repor t 2020 / Deutsche EuroShop

CORPOR ATE gOVERNANCE The members of the Supervisory Board are: • Reiner Strecker, Chairman • Karin Dohm, Deputy Chairwoman • Dr Anja Disput • Henning Eggers • Dr Henning Kreke • Alexander Otto • Claudia Plath • Klaus Striebich • Roland Werner Mr Strecker, Ms Dohm and Mr Eggers are members of the Super- visory board Executive Committee. The Executive Committee is chaired by the Chairman of the Supervisory Board. The Committee discusses urgent business matters and passes relevant resolutions. Moreover, it is responsible for human resources issues concern- ing the Executive Board and for reviewing the Company’s corporate governance principles. The Executive Committee of the Supervisory Board also fulfils the role of a nomination committee. The Audit Committee consists of Ms Dohm as Financial Expert and Chairwoman as well as Mr Strecker and Mr Eggers. It is responsible for issues relating to financial reporting, auditing and the preparation of the annual and consolidated financial statements. It supervises the audit and assesses the quality of the auditor’s work as well as the effectiveness of the internal control and risk management systems. Former members of the Company’s Executive Board and the Chair- man of the Supervisory Board generally do not chair the Audit Com- mittee, to avoid conflicts of interest. Mr Eggers, Dr Kreke and Mr Strecker are members of the Capital market Committee. The Capital Market Committee is chaired by Mr Eggers. The position of Deputy Chairman is held by Mr Strecker. The Supervisory Board’s powers relating to the utilisation of approved capital and conditional capital were transferred to the committee for decision-making and processing. In addition, decisions on the approval of the Supervisory Board for loan agreements are also dele gated to this committee in individual cases if these meet the cri- teria of a transaction requiring approval. Executive Board The Executive Board of Deutsche EuroShop AG manages the Com- pany in accordance with the provisions of German company law and with its rules of procedure. The Executive Board’s duties, responsi- bilities and business procedures are laid down in its rules of proce- dure and in its schedule of responsibilities. The chief management duties of the Executive Board are the management of the Group and the determination of its strategic orientation and planning, and the establishment, implementation and monitoring of risk management. The diversity concept of the Supervisory Board for the Executive Board which originated in 2015 was given concrete shape and expanded in April 2017. It proposes that the Executive Board should consist of members of both sexes with a proportion of women of at least 30%. The composition of the Executive Board should be geared towards the needs of a listed company with a small staff base. This should take into account the requirements of accounting with high capital investment as well as the largely national activities in long- term investment in retail properties. The members of the Execu- tive Board are expected to have knowledge and experience in the application of accounting principles and internal control procedures according to German and /or international accounting standards, in the retail trade as well as in the management of shopping centers, in equity and debt financing, capital market, corporate governance, corporate and personnel management, corporate acquisitions and mergers, and in the purchase and sale of real estate. The focal points of knowledge and experience should complement each other. The upper age limit for members of the Executive Board is 60. As of 31 December 2020, the Executive Board of Deutsche Euro- Shop AG comprised two members. Wilhelm Wellner Born 8 March 1967 First appointed: 2015 Appointed until: 30 June 2025 Wilhelm Wellner joined Deutsche EuroShop in 2015, initially as a member of the Executive Board, and assumed his present position as CEO on 1 July 2015. He is also a managing director and director at various companies in the Deutsche EuroShop Group. 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 and governance) on the Executive 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. 9 0 Financial Repor t 2020 / Deutsche EuroShop

CORPOR ATE gOVERNANCE Name / Firma Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Name of financial instrument Type of transaction Date Price (€) Number Total volume (€) Place Share* Purchase 28.09.2020 9.9427 37,266 370,524.67 Turquoise Plato Claudia Plath Share* Purchase 29.09.2020 10.01 3,000 30,030.00 Xetra Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Claudia Plath * ISIN: DE0007480204 Share* Purchase 30.09.2020 10.4923573 55,000 577,079.65 Share* Purchase 01.10.2020 10.786717 108,047 1,165,472.39 Share* Purchase 02.10.2020 10.850239 Share* Sell 23.10.2020 12.07 6,561 2,000 71,188.42 24,140.00 Outside a trading venue Outside a trading venue Outside a trading venue Xetra RELATIONSHIPS WITH SHAREHOLDERS Shareholders exercise their rights in matters concerning the Com- pany at the Annual General Meeting. The Annual General Meet- ing elects the members of the Supervisory Board and passes res- olutions approving the actions of the Executive and Supervisory Boards. It decides on the utilisation of the unappropriated surplus and amendments to the Company’s Articles of Association. The Annual General Meeting, at which the Executive and Supervisory Boards give an account of the past financial year, takes place once a year. When resolutions are adopted at the Annual General Meeting, each share confers entitlement to one vote in line with the principle of “one share, one vote”. All shareholders are entitled to attend the Annual General Meeting and to speak and submit questions about items on the agenda. The COVID-19 Mitigation Act allowed com panies to hold a virtual Annual General Meeting in financial year 2020 to avoid the risk of infections. In this context, the rights of share holders were partially restricted. Our Company also held a virtual Annual General Meeting in June 2020. In doing so, the management endeav- oured to ensure maximum transparency: In the run-up to the Annual General Meeting, the speech of the Executive Board was published on the Internet three days before the end of the period for submit- ting questions, and at the Annual General Meeting all questions were answered in detail by the management. Deutsche EuroShop reports to its shareholders and to the public on the Company’s business performance, financial position and results of operations four times a year in line with a financial calendar. Press releases also inform the public and the media of Company activities. Information that may materially influence the Company’s share price is published in the form of ad hoc disclosures in accordance with the statutory requirements. The Executive Board gives regular presentations to analysts at physical and virtual conferences and at investor events as part of the Company’s investor relations activities. Analyst conferences on the release of the annual and quarterly financial statements are streamed on the Internet, where they are available to anyone inter- ested in the Company. In addition, Deutsche EuroShop AG provides financial information and other information about the Deutsche EuroShop Group on its website. COMPLIANCE MANAGEMENT The Executive Board has set up a compliance management system suitable for a holding company and gives appropriate consideration to legal and corporate governance requirements at a key affiliated service provider. In financial year 2019, the compliance management system and the internal control system (ICS) were adapted in par- ticular to the requirements of ARUG II (Act on the Implementation of the Shareholders’ Rights Directive), which came into force on 1 Jan- uary 2020. The Company set up a whistleblower system for the col- lection of anonymous internal and external information in the first quarter of 2018. ACCOUNTING AND AUDITS The Deutsche EuroShop Group prepares its financial statements according to International Financial Reporting Standards (IFRS) on the basis of section 315a of the Handelsgesetzbuch (HGB – German Commercial Code). The annual financial statements of Deutsche EuroShop AG will continue to be prepared in line with the accounting provisions of the HGB. The Executive Board is responsible for prepa- ration of the financial statements. The Chairwoman of the Audit Com- mittee commissions the auditor of the annual financial statements, as elected by the Annual General Meeting. The stricter requirements for auditor independence are met in this process. 9 2 Financial Repor t 2020 / Deutsche EuroShop

LEgAL / Disclaimer 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. 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 sub- ject to rounding differences. The prefixes before rates of change are based on economic considerations: improvements are indicated by a plus (+); deteriorations by a minus (–). Forward-looking state- ments: 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), Quarterly Statement 3M 2020, Quarterly Statement 9M 2020 and Interim Report H1 2020 (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 94 Financial Repor t 2020 / Deutsche EuroShop

20 YEARS 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020