Deutsche EuroShop AG 9M Report Englisch

9M 2020 / Quar terly statement of 30 September 2020 WILHELM WELLNER OLAF BORKERS LETTER FROM THE EXECUTIVE BOARD D E AR SHAREHO LD ER S, D E AR RE AD ER S, In the third quarter of the current financial year we saw a signifi- cant recovery in business activities. At the end of September, foot- fall in our centers had risen to 78% of the previous year’s level, and tenants’ revenues to 89%. The ratio of rent paid to rent due, known as the collection ratio, has also improved significantly. After an average of only 55% of all rent receivables were paid in the second quarter, due to the coronavirus, the collection ratio for the third KEY CONSOLIDATED FIGURES quarter was 92%. in € million Revenue Net operating income (NOI) EBIT EBT (excluding measurement gains / losses 1) EPRA 2 earnings 5 FFO 01.01. – 30.09.2020 01.01. – 30.09.2019 164.4 121.1 118.1 93.4 90.8 90.9 167.6 150.1 146.9 121.6 120.5 111.7 + / - -1.9% -19.4% -19.6% -23.2% -24.6% -18.6% Overall, there has been a clearly positive trend since reopening, even if business activities in some segments were still far from their normal levels. This overall trend indicates for us that consum- ers continue to appreciate bricks and mortar retail and shopping in our attractive shopping centers. Even after the outbreak of the coronavirus pandemic there is a desire for the real shopping expe- rience, and the current security requirements and restrictions are being accepted, so centers can be operated safely. However, the situation remains tense. The trend in infection figures in recent weeks and the associated renewed official busi- Consolidated profit -105.5 93.3 -213.1% ness closures and restrictions on operations, as well as consumer in € EPRA 2 earnings per share 5 FFO per share Earnings per share Weighted number of no-par-value shares issued 01.01. – 30.09.2020 01.01. – 30.09.2019 1.47 1.47 -1.71 1.95 1.81 1.51 + / - -24.6% -18.8% restraint, are again having a negative impact on our rental part- ners. In this special situation we are in close contact with political representatives through real estate industry associations to ensure these substantial impacts are taken into account when weighing up current or prospective official measures, and also when setting up -213.2% support programmes. At the same time, we want to demonstrate that centers, shops and restaurants can operate safely at all times. 61,783,594 61,783,594 0.0% It is good that the shops in Germany can remain open in the current situation and that limitations on the number of customers have not been set too restrictively. It is also a fact, however, that foot- fall has recently fallen significantly once again due to the measures taken and the general uncertainty. We are confident researchers are making real progress in the fight against the pandemic. The recent announcement that an effective vaccine has been developed is very good news, even though its approval and potential use are still outstanding. in € million Equity 3 Liabilities Total assets Equity ratio in % 3 LTV ratio in % 4 30.09.2020 31.12.2019 2,482.3 2,601.5 1,928.0 1,957.1 4,410.3 4,558.6 56.3 31.5 57.1 31.5 + / - -4.6% -1.5% -3.3% Cash and cash equivalents 213.3 148.1 44.0% 1 Including the share attributable to joint ventures and associates accounted for using the equity method 2 European Public Real Estate Association 3 Including third-party interests in equity 4 Loan-to-value ratio (LTV ratio): ratio of net financial liabilities (financial liabilities less cash and cash equivalents) to non-current assets (investment properties and investments accounted for using the equity method) 5 EPRA earnings include a one-off tax refund in the period the previous year, including interest accrued for previous years. Without this tax refund, EPRA earnings would have totalled €111.5 million or €1.81 per share. 1 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 The lockdown in the first half of 2020 had a significant nega- There is still considerable uncertainty about what the future holds tive impact on our results of operations and measurement gains / for the general economic situation and the coronavirus pandemic, losses in the second and third quarters. We are continuing to hold as well as the impact they have on our business. It is currently intensive discussions with our tenants to find economic solutions not possible to make a reliable forecast for financial year 2020 that are viable for both sides and have already been able to reach on this basis. However, we believe that Deutsche EuroShop is still settlements or enter into agreements in the majority of cases. well equipped to meet the current challenges, thanks to its solid balance sheet, low debt and stable liquidity position. We thank you for your continued trust. Hamburg, November 2020 Wilhelm Wellner Olaf Borkers RESULTS OF OPERATIONS in € thousand Revenue Operating and administrative costs for property NOI Other operating income Other operating expenses EBIT At-equity proﬁt / loss Measurement gains / losses (at equity) Deferred taxes (at equity) At-equity (operating) profit / loss Interest expense Profit / loss attributable to limited partners Other financial gains or losses Financial gains or losses (excl. measurement gains / losses) EBT (excl. measurement gains / losses) Measurement gains / losses Measurement gains / losses (at equity) Measurement gains / losses (including at-equity profit / loss) Taxes on income and earnings Deferred taxes Deferred taxes (at equity) Deferred taxes (including at equity) CONSOLIDATED PROFIT 01.01. – 30.09.2020 01.01. – 30.09.2019 -31,934 49,893 -88 -171,450 -49,893 24,856 88 164,410 -43,342 121,068 2,393 -5,390 118,071 17,871 -32,746 -9,802 8 -24,669 93,402 -221,343 -2,536 24,944 -105,533 21,356 1,622 129 -11,489 -1,622 -14,155 -129 in % -1.9 -148.2 -19.4 77.8 -18.1 -19.6 -22.7 12.4 28.7 -99.7 2.5 -23.2 Change + / - -3,184 -25,876 -29,060 1,047 -828 167,594 -17,466 150,128 1,346 -4,562 146,912 -28,841 23,107 -37,392 -13,745 2,740 -25,290 121,622 -5,236 4,646 3,943 -2,732 621 -28,220 -13,111 -208,232 -1,588.2 -887 -1,649 -185.9 -14,284 39,228 93,340 -198,873 274.6 -213.1 2 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 Revenue affected by the coronavirus pandemic Revenue for the reporting period came in at €164.4 million, which Financial gains / losses at previous year’s level The financial loss (excluding the measurement loss) improved was 1.9% lower on a comparable basis than in the same period of slightly to €-24.7 million (previous year: €-25.3 million) due to oppo- the previous year (€167.6 million). This was due to the legal arrange- site effects that cancelled each other out. ments adopted in our foreign markets from mid-March to cushion the effects of the coronavirus pandemic, which included the tem- The at-equity (operating) loss fell by €5.2 million, due in particular porary suspension of payment obligations under leases for tenants to higher write-downs on rent receivables as a result of the corona- affected by the closures (these resulted in a decline in revenue of virus. In the previous year, other financial gains and losses included €2.1 million). Sharp rise in write-downs due to coronavirus Center operating costs in the reporting period, comprising mainly a one-off interest refund of €2.7 million for a trade tax refund. On the other hand, the interest expense of Group companies was reduced by €4.6 million. In addition to scheduled repayments, the cheaper refinancing for the Rhein-Neckar-Zentrum Viernheim center and the center management fees, non-allocable ancillary costs, mainte- A10 Center Wildau had a positive effect here. The share of earnings nance and write-downs of rent receivables, rose by a substantial attributable to limited partners decreased by €3.9 million in line with €25.9 million to €43.3 million. This was due to the higher write- the reduced EBIT. downs on rent receivables, which were measured on the basis of expected rent defaults in connection with tenant support measures, and increased write-downs in connection with tenant insolvencies. Overall, write-downs on rent receivables amounted to €26.8 million EBT (excluding measurement gains / losses) falls by just under a quarter due to coronavirus The decline in EBIT and at-equity profit / loss plus the one-off inter- (previous year: €1.3 million). est refund the previous year caused EBT (excluding measurement gains / losses) to fall from €121.6 million to €93.4 million (-23.2%). Other operating income and expenses Other operating income, stemming primarily from the reversal of provisions, from income from rental receivables written down in Measurement losses in a changed market environment As at 30 June 2020, the market values of the shopping centers were previous years and from additional payments in conjunction with reviewed by the external appraiser Jones Lang LaSalle GmbH (JLL) ancillary costs, rose from €1.3 million to €2.4 million. and adjusted by us in accordance with IAS 40 through the income statement. Together with further investment costs in the third At €5.4 million, other operating expenses, most of which related quarter, this resulted in a measurement loss of €221.3 million as to general administrative and personnel expenses, were up on the at the reporting date. Of this, €-171.4 million after minority inter- same period last year as a result of one-off financing costs in con- ests was attributable to the measurement of the real estate assets nection with the extension of our credit line (€0.5 million) and higher reported by the Group and €-49.9 million to the measurement of the consulting costs (€0.2 million). real estate assets of joint ventures accounted for using the equity EBIT significantly lower than last year Earnings before interest and taxes (EBIT) at €118.1 million were well below the figure for the first nine months of 2019 (€146.9 million), Taxes on income and earnings Taxes on income and earnings amounted to €-2.5 million (previous largely due to the write-down of accumulated rent arrears and the year: €-0.9 million) and included a trade tax refund of €7.1 million coronavirus-driven decline in revenue. in the previous year. Due to the measurement loss, deferred taxes method. resulted in income of € 24.9 million (previous year: €-14.3 million deferred tax expense). 3 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 EPRA earnings and consolidated profit significantly lower EPRA earnings, which exclude measurement gains / losses, fell Development of funds from operations (FFO) Funds from operations (FFO) are used to finance our ongoing invest- significantly to €90.8 million or €1.47 per share (-18.8%), due mainly ments in portfolio properties, scheduled repayments on our long- to the write-downs on rent receivables and the decline in revenue. term bank loans and as the basis for the distribution of dividends. The decline in earnings is also attributable to a one-off income from Significant non-recurring effects that are not part of the Group’s trade tax refunds included in the previous year and the interest operating activities are eliminated in the calculation of FFO. FFO income accrued on this. declined from €111.7 million to €90.9 million or by €0.34 per share to €1.47. As an income-based figure, FFO do not reflect the current The large measurement loss resulted in a consolidated loss of significant increase in rent receivables, so the analysis of tenants’ €-105.5 million, after a consolidated profit of €93.3 million in the payment behaviour expressed in the collection ratio is also neces- same period of the previous year. Earnings per share amounted to sary. This figure was 98% in the first quarter, 55% in the second €-1.71 (previous year: €1.51). quarter and 92% in the third quarter. EPRA EARNINGS FUNDS FROM OPERATIONS 01.01. – 30.09.2020 01.01. – 30.09.2019 01.01. – 30.09.2020 01.01. – 30.09.2019 in € thousand per share in € in € thousand per share in € in € thousand per share in € in € thousand per share in € Consolidated profit -105,533 -1.71 93,340 1.51 Consolidated profit -105,533 -1.71 93,340 1.51 Measurement gains / losses investment properties 1 Measurement gains / losses derivative financial instruments 1 Deferred tax adjustments pursuant to EPRA 2 EPRA EARNINGS 3 Weighted number of no-par-value shares issued 221,343 3.58 13,111 0.21 -88 0.00 -227 0.00 Measurement gains / losses investment properties 1 Tax refund for previous years Deferred taxes 1 FFO 221,343 3.58 13,111 0.21 0 0.00 -8,996 -24,944 90,866 -0.40 14,284 1.47 111,739 -0.14 0.23 1.81 -24,944 90,778 -0.40 14,231 1.47 120,455 0.23 1.95 Weighted number of no-par-value shares issued 61,783,594 61,783,594 61,783,594 61,783,594 1 Including the share attributable to joint ventures and associates accounted for using the equity method 1 Including the share attributable to joint ventures and associates accounted for using the equity method 2 Affects deferred taxes on investment properties and derivative financial instruments 3 EPRA earnings include a one-off tax refund in the period the previous year, including interest accrued for previous years. Without this tax refund, EPRA earnings would have totalled €111.5 million or €1.81 per share. 4 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 RE VENUE in € million 167.6 164.4 EBIT in € million 146.9 EBT * in € million FFO PER SHARE in € 118.1 121.6 93.4 1.81 1.47 -1.9% -19.6% -23.2% -18.8% 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 * excluding measurement gains / losses FINANCIAL POSITION AND NET ASSETS Net assets and liquidity The Deutsche EuroShop Group’s total assets decreased by €148.3 million to €4,410.3 million compared with the last reporting date, primarily due to the decline in the market value of real estate. By contrast, liquidity increased by €65.2 million to €213.3 million during the period. As a result of the low collection ratio due to the coronavirus, especially in the second quarter, Group receivables rose by €12.5 million to €19.9 million (after write-downs). Non-cur- in € thousand 30.09.2020 31.12.2019 Current assets 247,309 170,150 Change 77,159 Non-current assets 4,163,032 4,388,455 -225,423 Current liabilities 119,025 111,136 7,889 Non-current liabilities 1,809,028 1,845,991 -36,963 Equity (including third-party interests) 2,482,288 2,601,478 -119,190 rent liabilities fell by €37.0 million, mainly due to the release of TOTAL ASSETS 4,410,341 4,558,605 -148,264 deferred taxes as a result of lower property values. 5 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 BAL ANCE SHEE T STRUC TURE in € million 4,558.6 170.1 4,410.3 247.3 4,410.3 119.0 4,558.6 111.1 4,388.5 4,163.0 1,809.0 1,846.0 2,482.3 2,601.5 Current assets Non-current assets 2019 2020 2020 2019 Current liabilities Non-current liabilities Equity (including third-party interests) Equity ratio of 56.3% The equity ratio (including the shares of third-party shareholders) In Germany, closure orders mainly affect restaurants (take-away business is still permitted), leisure activities, gyms and personal was 56.3%, slightly down compared with the last reporting date care providers and have been in place since 2 November, running (57.1%) and still at a very healthy level. provisionally until 30 November 2020. Retailers remain open, but Leverage ratio remains low As at 30 September 2020, current and non-current financial liabili- there are restrictions on the number of customers (normally a maxi- mum of one customer per 10 m2 sales area), in line with what was applicable previously. Similar restrictions also apply in Austria (from ties stood at €1,506.8 million, which was €5.6 million lower than at 3 November to 30 November, provisionally). In the Czech Republic the end of 2019. The scheduled repayments were offset by a loan (from 22 October until further notice) and Poland (from 7 Novem- increase of €7.4 million to finance investment measures. Despite the ber until 29 November), all retail shops and restaurants are closed significant decreases in the value of shopping centers, the loan-to- (take-away business is still permitted), with the exception of grocery value ratio is still a very solid 31.5% (31 December 2019: 31.5%). stores and shops selling everyday consumer goods. REPORT ON EVENTS AFTER THE REPORTING DATE For Germany, the federal government has announced extensive tem- porary aid in the form of flat-rate cost allowances for November for businesses affected by the closure. At the same time, support measures are under discussion for businesses that are indirectly but comparably affected by the rules. In the Czech Republic, the gov- ernment announced with the renewed extensive lockdown for ten- Between the reporting date on 30 September 2020 and the date the ants the possibility of a subsidy of 50% of rental payments made in financial statements were prepared, the authorities decided to again the third quarter of 2020 to cushion the economic consequences. introduce stringent and temporary security measures to contain the The exact eligibility, design and impact of these aid measures are further spread of the coronavirus due to the significant increase in not yet known. infections since mid-October. The regulations vary widely by coun- try (or, in the case of Germany, federal state) depending on the posi- No further significant events occurred between the reporting date tion with infections. on 30 September 2020 and the date the financial statements were prepared. 6 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 OUTLOOK RISK REPORT Operating figures had performed positively in the third quarter of The coronavirus pandemic will have an impact on the individual 2020. Customer footfall rose to an average of 78% and tenant rev- risks of the Group with respect to the amount of losses and the like- enue was 89% of the previous year’s level. The collection ratio, i. e. lihood of occurrence. As already outlined in our 2019 risk report the ratio of rent paid to rent due, improved to 92%. Although the (see the 2019 financial report, p.18), the extent of this risk is cur- figures – especially for some sectors – were still well below the pre- rently not quantifiable. Depending on how the pandemic progresses, vious year’s level, business had stabilised further in the third quar- the individual risks and the overall risk position will be reviewed ter. This performance clearly indicates to us that even after the and regularly re-evaluated. However, we expect that individual risks outbreak of the coronavirus pandemic and despite the many secu- will increase in terms of the amount of losses and /or likelihood of rity requirements and restrictions in place, customers continue to occurrence. Given our good balance sheet structure and solid liquid- appreciate bricks and mortar retailers and shopping in our modern ity position and having assessed various risk scenarios, we do not and diverse centers. currently see any risks that could endanger the company’s contin- ued existence. Despite the good recovery so far, we are currently still in a situation of great uncertainty as to the extent and duration of the substan- tial impact of the coronavirus pandemic on our tenants’ businesses and hence on our own business outlook. The renewed business clo- sures and restrictions on business operations and the resulting cau- tious consumer sentiment are again having a direct negative impact on our rental partners and thus potentially on our rental income and cash flow. This applies even to our rental partners not directly affected by the closures as the general uncertainty among custom- ers since the end of October has already led to significantly lower footfall in shopping areas and also in our centers. We are continuing to hold intensive discussions with our tenants to find economic solutions that are viable for both sides in this special situation and were able to reach settlements or enter into agree- ments in the majority of cases for the lockdown in the first half of 2020. We are in ongoing negotiations with other tenants. The conclu- sion of these negotiations and the future course of the pandemic will have a significant impact on the results for the financial year 2020. A quantifiable estimate is therefore still not reliably possible at the present time. However, the accumulated revenue losses and write- downs needed in the first nine months cannot be made up by the end of the year and therefore revenues, EBIT, EBT (excluding measure- ment gains / losses) and FFO for the full year 2020 will be below the financial figures for 2019. 7 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 CONSOLIDATED BALANCE SHEET ASSETS in € thousand Assets Non-current assets Intangible assets LIABILITIES 30.09.2020 31.12.2019 in € thousand 30.09.2020 31.12.2019 EQUITY AND LIABILITIES Equity and reserves 53,743 53,752 Issued capital Property, plant and equipment 362 424 Capital reserves Investment properties 3,635,873 3,822,786 Retained earnings Investments accounted for using the equity method Non-current assets Current assets Trade receivables Other current assets Cash and cash equivalents Current assets 473,054 511,493 4,163,032 4,388,455 19,928 14,119 7,417 14,646 213,262 148,087 247,309 170,150 Total equity Non-current liabilities Financial liabilities Deferred tax liabilities 61,784 61,784 1,217,560 1,217,560 868,992 970,229 2,148,336 2,249,573 1,425,683 1,433,373 355,122 378,755 Right to redeem of limited partners 333,952 351,905 Other liabilities 28,223 33,863 Non-current liabilities 2,142,980 2,197,896 Current liabilities Financial liabilities Trade payables Tax liabilities Other provisions Other liabilities Current liabilities 81,083 78,974 2,049 1,363 8,014 5,805 1,401 8,120 26,516 16,836 119,025 111,136 TOTAL ASSETS 4,410,341 4,558,605 TOTAL EQUITY AND LIABILITIES 4,410,341 4,558,605 8 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 CONSOLIDATED INCOME STATEMENT in € thousand Revenue Property operating costs Property management costs Net operating income (NOI) Other operating income Other operating expenses Earnings before interest and taxes (EBIT) Share in the profit or loss of associated companies and joint ventures accounted for using the equity method Interest expense Profit / loss attributable to limited partners 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 01.07. – 30.09.2020 01.07. – 30.09.2019 01.01. – 30.09.2020 01.01. – 30.09.2019 55,710 -3,349 -2,646 49,715 634 -1,642 48,707 7,264 -12,260 -4,425 53 -9,368 -4,346 34,993 -7,889 54,988 -11,421 -2,545 41,022 304 -1,754 39,572 5,366 -10,767 -3,604 2 -9,003 -2,748 27,821 -4,049 23,772 0.38 164,410 -35,747 -7,595 167,594 -9,271 -8,195 121,068 150,128 2,393 -5,390 1,346 -4,562 118,071 146,912 -31,934 -32,746 -9,802 8 -74,474 -171,450 21,356 -37,392 -13,745 2,740 -27,041 -11,489 -127,853 108,382 -15,042 93,340 1.51 22,320 27,104 -105,533 0.44 -1.71 STATEMENT OF OMPREHENSIVE INCOME in € thousand Consolidated profit Items which under certain conditions in the future will be reclassified to the income statement: Actual share of the profits and losses from instruments used to hedge cash flows Deferred taxes on changes in value offset directly against equity Total earnings recognised directly in equity TOTAL PROFIT Share of Group shareholders 01.07. – 30.09.2020 01.07. – 30.09.2019 01.01. – 30.09.2020 01.01. – 30.09.2019 23,772 27,104 -105,533 93,340 1,516 -335 1,181 24,953 24,953 2,965 -663 2,302 5,519 -1,223 4,296 29,406 -101,237 29,406 -101,237 635 -123 512 93,852 93,852 9 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY in € thousand outstanding Share capital Number of shares Capital reserves Other retained earnings Statutory reserve Cash flow hedge reserve Total 01.01.2019 Total profit Dividend payments 61,783,594 61,784 1,217,560 0 0 0 0 30.09.2019 61,783,594 61,784 1,217,560 974,484 93,340 -92,675 975,149 993,900 -105,533 0 2,000 -26,080 2,229,748 0 0 2,000 2,000 0 0 512 0 93,852 -92,675 -25,568 2,230,925 -25,671 2,249,573 4,296 -101,237 0 0 01.01.2020 Total profit Dividend payments 30.09.2020 61,783,594 61,784 1,217,560 0 0 0 0 61,783,594 61,784 1,217,560 888,367 2,000 -21,375 2,148,336 CONSOLIDATED CASH FLOW STATEMENT in T€ 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 Outflows for the acquisition of investment properties Inflows from the disposal of investment properties Outflows for the acquisition of intangible assets and property, plant and equipment Cash flow from investing activities Inflows from financial liabilities Outflows from the repayment of financial liabilities Outflows from the 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 01.01. –30.09.2020 01.01. –30.09.2019 -105,533 -22,320 74,474 108 171,450 6,505 -11,984 -106 5,844 118,438 -32,595 8 -2,573 83,278 -8,894 490 -12 -8,416 7,416 -13,148 -67 -3,888 0 -9,687 65,175 148,087 213,262 93,340 15,042 27,041 130 11,489 18,501 -11 1,481 -3,771 163,242 -37,392 1,405 -1,894 125,361 -11,904 0 -19 -11,923 16,775 -19,228 -84 -12,294 -92,675 -107,506 5,932 116,335 122,267 10 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 SEGMENT REPORTING Segment reporting by Deutsche EuroShop AG is carried out on the In order to assess the contribution of the segments to the individ- basis of internal reports that are used by the Executive Board to ual performance indicators as well as to the Group’s success, the manage the Group. Internal reports distinguish between shopping income, expenditure, assets and liabilities of the joint ventures are centers in Germany (“domestic”) and other European countries included in internal reporting in proportion to the Group’s share (“abroad”). therein. Similarly, for subsidiaries in which the Group is not the sole shareholder, income, expenditure, assets and liabilities are likewise As the Group’s main decision-making body, the Deutsche Euro- only consolidated proportionately according to the corresponding Shop AG Executive Board first and foremost assesses the perfor- Group share. This results in the segments being divided as follows: mance of the segments based on revenue, EBIT and EBT excluding measurement gains / losses. The measurement principles for seg- ment reporting correspond to those of the Group. BREAKDOWN BY SEGMENT in € thousand Revenue (01.01. – 30.09.2019) EBIT (01.01. – 30.09.2019) EBT excl. measurement gains / losses (01.01. – 30.09.2019) Domestic 144,072 (146,180) 105,141 (129,121) 77,924 (97,412) Abroad 30,824 (32,349) 24,221 (30,272) 18,981 (24,935) Total Reconciliation 174,896 (178,529) 129,362 (159,393) 96,905 (122,347) -10,486 (-10,935) -11,291 (-12,481) -3,503 (-725) Segment assets (31.12.2019) of which investment properties (31.12.2019) 3,203,458 (3,315,952) 3,064,700 (3,246,262) 753,993 (773,700) 714,450 (743,828) 3,957,451 (4,089,652) 3,779,150 (3,990,090) 452,890 (468,953) -143,277 (-167,304) 01.01. – 30.09.2020 164,410 (167,594) 118,071 (146,912) 93,402 (121,622) 30.09.2020 4,410,341 (4,558,605) 3,635,873 (3,822,786) 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 liabili- ties are considered by the Executive Board of Deutsche EuroShop AG in a cross-segment manner and are therefore included in the rec- onciliation column of the segment liabilities. Accordingly, the good- will from the acquisition of Olympia Brno was allocated to the rec- onciliation column of the segment assets. The reconciliation column also contains the companies that are not allocated to either of the two segments (Deutsche EuroShop AG, DES Management GmbH, DES Beteiligungs GmbH & Co. KG). In view of the geographical segmentation, no further information pursuant to IFRS 8.33 is given. 11 Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 OTHER DISCLOSURES Responsibility statement by the Executive Board To the best of our knowledge, and in accordance with the applicable of the Group, together with a description of the principal opportu- nities and risks associated with the expected development of the Group for the remainder of the financial year. reporting principles for interim financial reporting, the interim con- Hamburg, 12 November 2020 solidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business, and the position Wilhelm Wellner Olaf Borkers THE SHOPPING CENTER SHARE KEY SHARE DATA Following a year-end closing price* for 2019 of €26.42, Deutsche Sector / industry group Financial services / real estate Share capital as at 30.09.2020 €61,783,594.00 EuroShop shares were steady in the first few weeks of 2020. On 3 January 2020 the share price closed at €26.50, the highest level in the first six months of the year. At the end of February, investor uncertainty rose sharply in connection with the coronavirus pan- demic. This led to considerable price falls for our shares, those of our peers and stock markets worldwide. DES shares were trading Number of shares as at 30.09.2020 (no-par-value registered shares) Dividend for 2019 Share price on 30.12.2019 at €25.40 in the closing auction on 21 February 2020, but ended the Share price on 30.09.2020 reporting period at €10.60 on Xetra after a very volatile bear mar- Low / high for the period under review ket period that briefly saw the price as low as €9.28 on an intra- day basis. Deutsche EuroShop’s market capitalisation stood at €654.9 million on 30 September 2020. This equated to a negative performance of 59.9% for the reporting period. The SDAX was ulti- mately stable over the same period at -0.2%, but also saw major volatility. DEUTSCHE EUROSHOP VS SDAX AND EPRA COMPARISON, JANUARY TO NOVEMBER 2020 indexed, base of 100, in % Deutsche EuroShop EPRA SDAX Retail-Peers Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. 120 100 80 60 40 20 0 12 61,783,594 €0.00 €26.42 €10.60 €9.52 / €26.50 €654.9 million Frankfurt and Xetra Berlin, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart SDAX, EPRA, GPR 250, MSCI Small Cap, HASPAX, F.A.Z.-Index DE 000748 020 4 DEQ, Reuters: DEQGn.DE Market capitalisation on 30.09.2020 Prime Standard OTC markets Indices ISIN Ticker symbol * Unless otherwise specified, all information and calculations are based on Xetra closing prices. Deutsche EuroShop / 9M

9M 2020 / Quar terly statement of 30 September 2020 FINANCIAL CALENDAR 2020 2021 12,11. 25.11. 01.12. Quarterly statement 9M 2020 07. – 08.01. Oddo BHF Forum (virtual) DZ Bank Equity Conference (virtual) 11. –13.01. Bank of America SMID Cap Conf. 2021 (virtual) Berenberg European Conference (virtual) 19.01. Kepler Cheuvreux GCC (virtual) 07. – 08.12. HSBC Virtual Real Estate Conference (virtual) 25. – 26.03. Bank of America EMEA Real Estate CEO 28.04. 11.05. 18.06. 12.08. 11.11. Conference 2021 (virtual) Publication of 2020 Annual Report Quarterly statement 3M 2021 Annual General Meeting, Hamburg Half-year Financial Report 2021 Quarterly statement 9M 2021 Our financial calendar is updated continuously. Please check our website for the latest events: www.deutsche-euroshop.com/ir STADT- GALERIE HAMELN CITY- ARKADEN WUPPERTAL OLYMPIA CENTER BRÜNN PHOENIX-CENTER HAMBURG A10 CENTER WILDAU / BERLIN GALERIA BAŁTYCKA DANZIG HEROLD-CENTER NORDERSTEDT CITY-POINT KASSEL SAARPARK-CENTER NEUNKIRCHEN FORUM WETZLAR BILLSTEDT-CENTER HAMBURG www.deutsche-euroshop.de/IR WOULD YOU LIKE ADDITIONAL INFORMATION? Then visit us online or call us: Patrick Kiss and Nicolas Lissner Phone: +49 (0)40 - 41 35 79 20/-22 Fax: +49 (0)40 - 41 35 79 29 www.deutsche-euroshop.com/ir Email: ir@deutsche-euroshop.de Forward-looking statements This quarterly statement contains forward-looking statements Rounding and rates of change Percentages and figures stated in this report may be subject to based on estimates of future developments by the Executive Board. rounding differences. The rates of change are based on economic The statements and forecasts represent estimates based on all of considerations: improvements are indicated by a plus (+); deterio- the information available at the current time. If the assumptions on ration by a minus (–). which these statements and forecasts are based do not materialise, the actual results may differ from those currently being forecast. 13 Deutsche EuroShop / 9M