DES_3M_2021

DES_3M_2021_E

3M 2021 / Quar terly statement as at 31 March 2021 LETTER FROM THE EXECUTIVE BOARD Dear Shareholders, Dear Readers, The coronavirus pandemic started spreading over a year ago and has had a firm grip on large parts of the world, many sectors of the econ- omy and entire populations ever since. This has had a particular effect on the bricks-and-mortar retail sector and thus also on Deutsche EuroShop. Since the renewed rise in the number of infections, the blanket shop closures ordered by the authorities in mid-December 2020 continue to this day. They were only interrupted by short opening phases in our foreign centers. In Germany, there were just selective openings in March 2021, in some cases subject to further conditions such as “Click & Collect” or “Click & Meet”, which are generally barely KEY CONSOLIDATED FIGURES profitable for retailers. in € million Revenues 5 Net operating income (NOI) EBIT EBT (excluding valuation gains / losses 1) EPRA 2 earnings 5 FFO Consolidated profit in € EPRA 2 earnings per share 5 FFO per share Earnings per share Weighted number of no- par-value shares issued 01.01. – 31.03.2021 01.01. – 31.03.2020 51.9 32.5 31.4 23.7 23.1 22.5 22.3 57.2 50.0 48.3 40.8 38.5 38.6 28.0 01.01. – 31.03.2021 01.01. – 31.03.2020 0.37 0.36 0.36 0.62 0.62 0.45 + / - -9.2 % -35.0 % -34.9 % -41.9 % -40.0 % -41.7 % -20.4 % + / - -40.3 % But there are also positive signs that make us optimistic that the situ- ation will stabilise in the summer as expected. The availability of vac- cines is steadily increasing and the vaccination status of the population continues to improve. In our centers, we are putting extensive hygiene and protection measures in place and also setting up test centers to help businesses reopen as soon as possible. Various countries have already achieved a relatively high level of vaccination in the popula- tion and significantly relaxed the rules for the bricks-and-mortar retail trade. In our foreign markets, governments are taking an individual, dynamic approach to restrictions on a local basis, thus significantly easing the burden on retailers. In parts of Austria, many shops have already reopened with safety measures since the beginning of Feb- ruary, and in Poland, the Czech Republic and Hungary, further shops opened in April and May. In this context, we note that the physical retail -41.9 % trade continues to enjoy great popularity. Whenever stores reopened, -20.0 % we observed a rapid increase in customer footfall in our centers. Although visitor numbers were still understandably below 2019 levels 61,783,594 61,783,594 0.0 % due to ongoing restrictions, this tells us that people are looking for- ward to going out and meeting up in busy locations, socialising and in € million Equity 3 Liabilities Total assets Equity ratio in % 3 LTV ratio in % 4 31.03.2021 31.12.2020 2,341.0 2,314.8 1,889.2 1,922.6 4,230.2 4,237.4 55.3 32.5 54.6 32.9 + / - 1.1 % -1.7 % -0.2 % Cash and cash equivalents 244.1 266.0 -8.3 % including the share attributable to equity-accounted joint ventures and associates 1 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 fi nancial investments accounted for using the equity method) 5 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparability. Please refer to the comments in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. shopping in real-world stores. For our main market of Germany, the German government has unfor- tunately continued its much more restrictive approach to fighting the pandemic, which is essentially based on the number of cases, and most recently tightened its existing measures with the Infektionss- chutzgesetz (IfSG – Infection Protection Act) which has been in force since 23 April 2021. In the current pandemic situation, it is now to be expected that the “federal emergency brake” will continue to lead to nationwide store closures in Germany in the second quarter – with a corresponding impact on our tenants and thus also on our business. We must continue to weather this situation and act with appropri- ate circumspection. This includes continuing to support our tenants in securing their properties, implementing further cost reductions, postponing investments, significantly reducing the dividend to secure liquidity in the long term, as well as communicating with our financing banks proactively and on the basis of trust. Deutsche EuroShop 1

3M 2021 / Quar terly statement as at 31 March 2021 The impact of the pandemic on the first quarter of 2021 was very Within this context, the now increasing openings of a large propor- evident in our financials. Sales of €51.9 million (-9.2 %) and EBIT of tion of shops in our foreign centers, as well as the significant eas- €31.4 million (-34.9 %) were substantially below the figures for the first ing expected for Germany in the summer, represent important steps quarter of the previous year, which were still largely unaffected by the towards sustained stabilisation. coronavirus. Our earnings before taxes and valuation (EBT excluding valuation) fell by 41.9 % to €23.7 million, and EPRA earnings shrank We very much hope that you will continue to accompany us on this accordingly by 40.0 % to €23.1 million. FFO adjusted for valuation and journey. special effects amounted to €22.5 million, which was 41.7 % below the prior-year level. With a collection ratio of 67 %, Group liquidity increased slightly to €244.1 million on a comparable basis despite the extensive business closures. Hamburg, May 2021 Even though we are unable to estimate the economic impact on Deutsche EuroShop at this point in time and the sector will again face major challenges in the second quarter of 2021, given our good bal- ance sheet structure and solid liquidity we remain confident that our Wilhelm Wellner Olaf Borkers company will overcome the obstacles in its way. RESULTS OF OPERATIONS in € thousand Revenues Operating and administrative costs for property Write-downs and derecognition of receivables NOI Other operating income Other operating expenses EBIT At-equity proﬁt / loss Valuation 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. valuation gains / losses) EBT (excl. valuation gains / losses) Valuation gains / losses Valuation gains / losses (at equity) Valuation 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. – 31.03.2021 01.01. – 31.03.2020 (adjusted) 1 51,904 -7,499 -11,868 32,537 784 -1,878 31,443 4,756 -10,205 -2,293 2 -7,740 23,703 2,486 -1,221 -2,646 22,322 57,182 -6,782 -370 50,030 655 -2,378 48,307 7,865 -11,003 -4,402 5 -7,535 40,772 -5,902 -2,180 -4,656 28,034 6,517 1,167 181 -4,735 -1,167 -4,475 -181 4,388 357 11 2,843 -357 -2,635 -11 Change + / - -5,278 -717 -11,498 -17,493 129 500 -16,864 -3,109 798 2,109 -3 -205 -17,069 8,388 959 2,010 -5,712 in % -9.2 -10.6 -3,107.6 -35.0 19.7 21.0 -34.9 -39.5 7.3 47.9 -60.0 -2.7 -41.9 142.1 44.0 43.2 -20.4 1 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparability. Please refer to the comments in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. Deutsche EuroShop 2

3M 2021 / Quar terly statement as at 31 March 2021 Revenues affected by coronavirus pandemic Revenues for the reporting period came in at €51.9 million, which was 9.2 % lower on a comparable basis than in the same period of Financial result excluding valuation effects on a par with previous year At €-7.7 million, financial losses (excluding valuation gains / losses) the previous year (€57.2 million). This was due to longer periods of were only slightly down year on year (previous year: €-7.5 million) as closure in our foreign markets compared with the previous year, a result of opposing, mutually offsetting effects. which necessitated, among other things, the temporary suspen- sion of payment obligations under rental agreements for tenants At-equity (operating) earnings also fell by €3.1 million to €4.8 mil- affected by the closures due to statutory regulations. Other factors lion, due in particular to higher write-downs on rent receivables responsible for the decline in revenues, mainly due to the pandemic, and revenue shortfalls as a result of the coronavirus. By contrast, included the loss of tenants who encountered payment difficulties, the interest expenses of Group companies were reduced by a fur- lower turnover-linked rents as well as longer re-letting periods and ther €0.8 million. In addition to scheduled repayments, the more higher vacancy rates. Operating center expenses slightly above previous year Center operating costs of €7.5 million in the reporting period, mainly attractive follow-up financing for the City-Arkaden Wuppertal had a positive effect here. The share of earnings attributable to limited partners decreased by €2.1 million in line with the reduced EBIT. comprising center management fees, non-apportionable ancillary costs, land taxes, building insurance and maintenance, increased year on year by 10.6%. This was due to higher vacancy-related, EBT (excluding valuation gains / losses) down substantially as a result of pandemic The decline in EBIT and at-equity earnings caused EBT (excluding non-apportionable ancillary costs and maintenance. valuation gains / losses) to fall from €40.8 million to €23.7 million (-41.9 %). Sharp rise in write-downs due to coronavirus Write-downs and the derecognition of receivables increased sig- nificantly on the previous year to €11.9 million (previous year: €0.4 million). These take into account both contractually agreed Valuation gains / losses positively influenced by one-off effect The valuation gain of €2.5 million (previous year: €-5.9 million) rental concessions (€5.3 million) and the further rental con- includes a positive valuation effect from the revaluation of an cessions expected on receivables outstanding as at the report- undeveloped and currently unused piece of land in the amount ing date (€3.6 million). In addition, receivables had to be derecog- of €4.0 million resulting from the receipt of an initial purchase nised or written down individually (€3.0 million), in particular due offer. Furthermore, the valuation result includes investment costs to insolvency. incurred by our portfolio properties (including the at-equity portion). Other operating income and expenses Other operating income, stemming primarily from the reversal of Taxes on income and earnings Taxes on income and earnings fell to €1.2 million (previous year: provisions, income from rental receivables for which impairment €2.2 million) as a result of the decline in earnings. Deferred taxes losses had been recognised in previous years and from additional resulting mainly from the systematic amortisation of the tax balance payments with respect to ancillary costs, amounted to €0.8 million, sheet values of our real estate assets totalled €2.6 million (previous representing an increase on the previous year. At €1.9 million, other year: €4.7 million). operating expenses, most of which related to general administra- tive and personnel expenses, were down on the same period in the previous year, in particular as a result of one-off financing costs in connection with the extension of our credit line in the comparable EPRA earnings and net income heavily impacted by coronavirus pandemic EPRA earnings, which exclude valuation gains / losses, fell signifi- quarter. EBIT significantly lower than in previous year Earnings before interest and taxes (EBIT) at €31.4 million were well below the figure for the previous year (€48.3 million), largely due to the derecognition and write-down of accumulated rent arrears and the coronavirus-driven decline in revenues. cantly to €23.1 million or €0.37 per share, due mainly to impairments of rent receivables and the decline in revenues. Consolidated profit stood at €22.3 million, €5.7 million lower than the prior-year period (€28.0 million), and earnings per share fell from €0.45 to €0.36. Deutsche EuroShop 3

3M 2021 / Quar terly statement as at 31 March 2021 RE VENUE in € million 57.2 EBIT in € million EBT * in € million FFO PER SHARE in € 51.9 48.3 0.62 40.8 31.4 0.36 23.7 -9.2% -43.9% -41.9% -41.9% 3M 2020 3M 2021 3M 2020 3M 2021 3M 2020 3M 2021 3M 2020 3M 2021 * excluding measurement gains / losses EPRA EARNINGS Development of funds from operations (FFO) Funds from operations (FFO) are used to finance our ongoing invest- ments in portfolio properties, scheduled repayments on our long- 01.01. – 31.03.2021 01.01. – 31.03.2020 term bank loans and as the basis for the distribution of dividends. in € thousand per share in € in € thousand per share in € Significant non-recurring effects that are not part of the Group’s operating activities are eliminated in the calculation of FFO. FFO Consolidated profit 22,322 0.36 28,034 0.45 declined from €38.6 million to €22.5 million or by €0.26 per share to -2,486 -0.04 5,902 0.10 result that it also necessary to analyse tenants’ payment behaviour expressed in the collection ratio. This amounted to 67 % in the first €0.36. As an income-based figure, FFO does not reflect the increase in outstanding rent receivables due to the coronavirus, with the 0 0.00 -90 0.00 quarter. Valuation gains / losses on investment properties 1 Measurement gains / losses on derivative financial instruments 1 Deferred tax adjustments pursuant to EPRA 2 EPRA EARNINGS 23,126 0.37 38,502 3,290 0.05 4,656 FUNDS FROM OPERATIONS 0.07 0.62 Weighted number of no-par-value shares issued 61,783,594 61,783,594 1 2 including the share attributable to equity-accounted joint ventures and associates relates to deferred taxes on investment properties and derivative financial instruments 01.01. – 31.03.2021 01.01. – 31.03.2020 in € thousand per share in € in € thousand per share in € Consolidated profit 22,322 0.36 28,034 0.45 Valuation gains / losses on investment properties 1 Deferred taxes 1 -2,486 2,646 -0.04 0.04 5,902 4,656 FFO 22,482 0.36 38,592 0.10 0.07 0.62 Weighted number of no-par-value shares issued 61,783,594 61,783,594 1 including the share attributable to equity-accounted joint ventures and associates Deutsche EuroShop 4

3M 2021 / Quar terly statement as at 31 March 2021 FINANCIAL POSITION AND NET ASSETS Net assets and liquidity The Deutsche EuroShop Group’s total assets declined slightly com- The Group’s receivables (after write-downs) increased accordingly by €5.4 million to €25.2 million (previous year: €19.8 million). The pared with the previous reporting date, falling by €7.2 million to Group’s liquidity, excluding draw-downs on the short-term credit €4,230.2 million. facility, improved slightly by €8 million to €244 million compared with the previous reporting date. The collection ratio, representing the ratio of incoming payments to rent and service charge receivables from tenants, showed the following movements in each individual month in 2020 up to the Equity ratio of 55.3 % The equity ratio (including the shares of third-party shareholders) end of April 2021 as a result of the coronavirus (adjustments from was 55.3 %, almost unchanged from the previous reporting date agreed rent reductions already taken into account): (54.6%) and still at a very solid level. COLLEC TION R ATIO in % Q1 2020 99 % 100 98 98 Q2 2020 71 % Q3 2020 96 % Q4 2020 93 % Q1 2021 67 % Q2 2021 96 96 95 97 92 90 76 72 64 69 69 64 66 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr Liabilities As at 31 March 2021, current and non-current financial liabilities stood at €1,507.0 million, €34.4 million lower than at the end of 2020. In addition to scheduled repayments, the €30 million drawn- down at short notice against the credit line beyond the reporting date was repaid. We continue to negotiate or coordinate with banks for upcoming refinancings and the potential impact of pandemic- related business closures on our key financial indicators and loan covenants. As at 31 March 2021, all loan covenants were met. Non-current, deferred tax liabilities increased by €2.1 million to €327.1 million due to further additions. Other current and non- current liabilities and provisions decreased by €1.1 million. Deutsche EuroShop 5

3M 2021 / Quar terly statement as at 31 March 2021 REPORT ON EVENTS AFTER THE REPORTING DATE As at 8 February 2021 and subject to certain conditions, Austria has lifted the measures requiring retail shops to close that had been in force since 26 December 2020. In order to contain the coronavirus pandemic, the authorities con- 7 April 2021. Even prior to that, however, catering operations had tinued to implement far-reaching safety and quarantine meas- only been possible to a limited extent (take-away) and retailers had ures in the first quarter, including the closure of retail stores that to observe the applicable protective measures, such as restrictions do not serve basic needs. There are exceptions only for food retail- on opening hours and mask requirements. Hungary closed its retail shops for the first time from 8 March to ers, drugstores, pharmacies, banking services and a limited number of other everyday goods and services. Currently, only our four for- No further significant events occurred between the reporting date eign centers are open subject to restrictions. In the majority of our of 31 March 2021 and the date on which the financial statements 17 German centers, only shops offering basic supplies are still open. were prepared. The ongoing safety and quarantine measures in the various coun- tries during the period are set out below. For Germany, the widespread retail closures already in place since 16 December 2020 continued in the first quarter. The regulations in force from 8 March 2021 allow retailers to reopen if a stable sev- en-day incidence of less than 50 new infections per 100,000 resi- dents is achieved. Purchases can be made by appointment in phys- ical retail outlets with a three-day incidence rate of between 50 and OUTLOOK EXPECTED RESULTS OF OPERATIONS AND FINANCIAL POSITION 100. If the incidence exceeds 100, the so-called emergency brake The uncertainties facing the business operations of our tenants in should apply, which provides for a reversal of the steps for open- our centers and with respect to the economy and consumer climate ing up. It is the responsibility of federal state governments to imple- are still very high owing to the coronavirus pandemic. Furthermore, ment the emergency brake. Parallel to this, further business restric- it is unclear for the majority of our shopping centers when and tions were introduced which varied greatly from region to region how they will be able to reopen. It therefore remains impossible and had a drastic impact on the bricks-and-mortar retail trade. to assess the negative impact which the continuing pandemic will They included, for example, restricting business to concepts such have on our operating earnings, and thus to provide a forecast for as “Click & Collect” or “Click & Meet”. Due to the pandemic situa- the 2021 financial year as a whole. We continue to expect revenues, tion, these regulations have so far only allowed shops to open for EBIT, EBT (excluding valuation gains / losses) and FFO to be below brief periods and on a selective basis, with the result that profitable the 2020 figures. business operations have generally not been possible. Since 23 April 2021, based on amendments to the Infection Protection Act, an addi- tional federal emergency brake has been in effect which permits DIVIDEND PLANNING shopping by appointment with mask and test within a seven-day incidence of 100 to 150. But here, too, individual federal states are As a precautionary measure to ensure and further strengthen the allowed to adopt and implement stricter measures on a regional Company’s liquidity, the Executive Board has therefore decided to basis. propose to the Annual General Meeting to pay a dividend amounting to 4% of share capital (equivalent to a total dividend of €2,471,343.76 In Poland, measures requiring the closure of shops in shopping or €0.04 per share) from the unappropriated surplus from the centers, which have been in force since 28 December 2020, were financial year 2020 remaining after allocation to other retained lifted again on 1 February 2021, subject to conditions such as earnings and in compliance with section 254 (1) of the Aktiengesetz wearing a mask and observing limits on the number of custom- (AktG – German Stock Corporation Act), and to carry forward the ers allowed per square metre; however, they were then reimposed remaining amount of the unappropriated surplus (€41,311,535.84) to regionally from 13 March 2021 and nationwide from 20 March 2021. new account. On 4 May 2021, retail shops were allowed to reopen, subject to safeguards. Notwithstanding the recent suspension or limitation of dividend pay- ments due to the coronavirus, we intend to continue our dividend Widespread retail closures in the Czech Republic since 27 Decem- policy focused on continuity once this exceptional situation has come ber 2020 became even stricter effective 1 March 2021, and the list to an end. of shops allowed to remain open has been shortened even fur- ther. Here, retailers reopened on 10 May 2021, subject to protec- tive measures. Deutsche EuroShop 6

3M 2021 / Quar terly statement as at 31 March 2021 RISK REPORT There have been no significant changes since the beginning of the financial year with regard to the risks associated with future busi- ness development. We do not believe that the Company currently faces any risks capable of jeopardising its continued existence. The information provided in the risk report of the consolidated finan- cial statements as at 31 December 2020 is therefore still applicable (Annual Report 2020, p. 19 ff.). CONSOLIDATED BALANCE SHEET ASSETS in € thousand ASSETS Non-current assets Intangible assets LIABILITIES 31.03.2021 31.12.2020 in € thousand 31.03.2021 31.12.2020 EQUITY AND LIABILITIES Equity and reserves 51,763 51,732 Subscribed capital Property, plant and equipment 297 330 Capital reserves Investment properties 3,444,848 3,437,145 Retained earnings Investments accounted for using the equity method 446,638 444,517 Total equity Non-current assets 3,943,546 3,933,724 Current assets Trade receivables Other current assets Cash and cash equivalents Current assets 25,186 17,383 19,822 17,805 244,077 266,030 286,646 303,657 Non-current liabilities Financial liabilities Deferred tax liabilities 61,784 61,784 1,217,560 1,217,560 744,294 723,902 2,023,638 2,003,246 1,250,674 1,359,612 327,050 324,978 Right of redemption of limited partners 317,393 311,525 Other liabilities 29,140 26,851 Non-current liabilities 1,924,257 2,022,966 Current liabilities Financial liabilities Trade payables Tax liabilities Other provisions Other liabilities Current liabilities 256,303 181,816 2,311 1,417 7,287 3,303 456 8,313 14,979 17,281 282,297 211,169 TOTAL ASSETS 4,230,192 4,237,381 TOTAL EQUITY AND LIABILITIES 4,230,192 4,237,381 Deutsche EuroShop 7

3M 2021 / Quar terly statement as at 31 March 2021 CONSOLIDATED INCOME STATEMENT OF STATEMENT COMPREHENSIVE INCOME In € thousand Revenues 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 01.01. – 31.03.2021 01.01. – 31.03.2020 (adjusted) 1 In € thousand Consolidated profit 01.01. – 31.03.2021 01.01. – 31.03.2020 22,322 28,034 51,904 -4,697 -2,802 -11,868 32,537 784 -1,878 31,443 57,182 -4,130 -2,652 -370 50,030 655 -2,378 48,307 4,388 6,517 -10,205 -11,003 Items which under certain conditions will be reclassified to the income statement in the future: 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 -2,491 1,774 561 -393 -1,930 20,392 1,381 29,415 20,392 29,415 Profit / loss attributable to limited partners -2,293 -4,402 Interest income Financial gains or losses Measurement gains / losses Earnings before tax (EBT) Taxes on income and earnings CONSOLIDATED PROFIT Earnings per share (€) 2 -8,108 2,843 26,178 -3,856 22,322 0.36 5 -8,883 -4,735 34,689 -6,655 28,034 0.45 1 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparabil- ity. Please refer to the comments in the notes to the consolidated financial state- ments under section “4. New accounting standards and changes in presentation”. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY In € thousand 01.01.2020 Total profit Dividend payments 31.03.2020 01.01.2021 Total profit Dividend payments 31.03.2021 Number of shares outstanding Share capital Capital reserves Other retained earnings Statutory reserve Cash flow hedge reserve Total 61,783,594 61,784 1,217,560 993,900 2,000 -25,671 2,249,573 0 0 0 0 28,034 0 0 0 1,381 29,415 0 0 61,783,594 61,784 1,217,560 1,021,934 2,000 -24,290 2,278,988 61,783,594 61,784 1,217,560 742,183 2,000 -20,281 2,003,246 0 0 0 0 22,322 0 0 0 -1,930 20,392 0 0 61,783,594 61,784 1,217,560 764,505 2,000 -22,211 2,023,638 Deutsche EuroShop 8

3M 2021 / Quar terly statement as at 31 March 2021 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 valuation 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 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 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. – 31.03.2021 01.01. – 31.03.2020 22,322 3,856 8,108 37 -2,843 2,267 -5,122 -1,026 -3,476 24,123 -10,112 2 -80 13,933 -1,247 -35 -1,282 0 -34,544 -22 -38 -34,604 -21,953 266,030 244,077 28,034 6,655 8,883 36 4,735 4,633 1,300 -1,148 -588 52,540 -11,003 5 -1,546 39,996 -5,054 -3 -5,057 7,416 -4,354 -22 -3,403 -363 34,576 148,087 182,663 Deutsche EuroShop 9

3M 2021 / Quar terly statement as at 31 March 2021 SEGMENT REPORTING Segment reporting by Deutsche EuroShop AG is carried out on the The adjustment of the proportionate consolidation of the joint ven- basis of internal reports that are used by the Executive Board to tures and subsidiaries in which the Group does not own a 100 % manage the Group. Internal reports distinguish between shopping stake is carried out in the reconciliation column. Deferred tax liabili- centers in Germany (“domestic”) and other European countries ties are considered by the Executive Board of Deutsche EuroShop AG (“abroad”). cross-segmentally and are therefore included in the reconciliation column for segment liabilities. The goodwill from the acquisition of As the Group’s main decision-making body, the Deutsche Euro- Olympia Brno was thus allocated to the reconciliation column of the Shop AG Executive Board first and foremost assesses the perfor- segment assets. The reconciliation column also contains the compa- mance of the segments based on revenues, EBIT and EBT excluding nies that are not allocated to either of the two segments (Deutsche valuation gains / losses. The measurement principles for segment EuroShop AG, DES Management GmbH, DES Beteiligungs GmbH & reporting correspond to those of the Group. Co. KG). In order to assess the contribution of the segments to the individ- In view of the geographical segmentation, no further information ual performance indicators as well as to the Group’s success, the pursuant to IFRS 8.33 is given. income, expenditure, assets and liabilities of the joint ventures are included in internal reporting in proportion to the Group’s share in them. Similarly, for subsidiaries in which the Group is not the sole shareholder, income, expenditure, assets and liabilities are only consolidated in proportion to the corresponding Group share. This results in the following presentation, broken down by segment: BREAKDOWN BY SEGMENT In € thousand Revenues (01.01. – 31.03.2020) 1 EBIT (01.01. – 31.03.2020) EBT excl. valuation gains / losses (01.01. – 31.03.2020) Segment assets (31.12.2020) of which investment properties (31.12.2020) Domestic 46,701 (50,567) 28,953 (43,519) 21,180 (34,970) Abroad 8,956 (10,455) 6,028 (9,514) 3,683 (7,189) Total Reconciliation 55,657 (61,022) 34,981 (53,033) 24,863 (42,159) -3,753 (-3,840) -3,538 (-4,726) -1,160 (-1,387) 3,067,100 (3,083,333) 2,904,466 (2,900,461) 717,762 (714,838) 680,092 (680,092) 3,784,862 (3,798,171) 3,584,558 (3,580,553) 445,330 (439,210) -139,710 (-143,408) 01.01. – 31.03.2021 51,904 (57,182) 31,443 (48,307) 23,703 (40,772) 31.03.2021 4,230,192 (4,237,381) 3,444,848 (3,437,145) 1 Figures shown within net operating income were changed as at 31 December 2020 and the previous year’s quarterly figures have been adjusted for easier comparability. Please refer to the comments in the notes to the consolidated financial statements under section “4. New accounting standards and changes in presentation”. Deutsche EuroShop 10

3M 2021 / Quar terly statement as at 31 March 2021 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, 11 May 2021 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 After closing the year* 2020 at €18.45, the Deutsche EuroShop Sector / industry group Financial services / real estate Share capital as at 31.03.2021 €61,783,594.00 61,783,594 €0.04 €18.45 €17.76 €16.18 / €19.02 €1.1 billion Frankfurt and Xetra Berlin, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart SDAX, EPRA, GPR 250, EPIX 30, MSCI Small Cap, HASPAX, F.A.Z.-Index DE 000748 020 4 DEQ, Reuters: DEQGn.DE Deutsche EuroShop 11 share started the first weeks of 2021 with no clear trend, moving in a range of around €16 to €19. The high for the period was reached on 14 January 2021 at €19.02. On both 18 and 19 February 2021, the share closed at €16.18, marking the low for the opening quarter of the year. Subsequently, the DES shared trended inconsistently and closed Q1 2021 at €17.76. This equates to a performance of -3.7 % for Number of shares as at 31.03.2021 (no-par-value registered shares) Dividend for 2020 (proposed) Share price on 30.12.2020 the reporting period. The SDAX rose by 4.6% over the same period. Share price on 31.03.2021 Deutsche EuroShop’s market capitalisation stood at €1.1 billion at Low / high for the period under review the end of the reporting period. Market capitalisation on 31.03.2021 * Unless otherwise specified, all information and calculations are based on Xetra closing prices. DEUTSCHE EUROSHOP VS. SDAX AND EPRA COMPARISON, JANUARY TO MAY 2021 (indexed, base of 100, in %) Deutsche EuroShop EPRA SDAX Prime Standard OTC markets Indices ISIN Ticker symbol 110 100 90 85 Jan. Feb. Mar. Apr. May

3M 2021 / Quar terly statement as at 31 March 2021 FINANCIAL CALENDAR 2021 11.05. 26.05. 27.05. 18.06. 24.06. 12.08. 02.09. 20.09. Quarterly statement 3M 2021 21.09. Baader Investment Conference, Munich Société Generale The Nice Conference (virtual) 22. – 23.09. Bank of America Global Real Estate Conference Kempen European Property Seminar (virtual) Annual General Meeting, Hamburg (virtual) UniCredit Kepler Cheuvreux German Property Day (virtual) Half-year Financial Report 2021 11.11. 01.12. (virtual) Quarterly statement 9M 2021 DZ Bank Equity Conference, Frankfurt Commerzbank Sector Conference, Frankfurt Our financial calendar is updated continuously. Berenberg and Goldman Sachs German Corporate Please check our website for the latest events: Conference, Munich 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.de/ir E-Mail: ir@deutsche-euroshop.de Nicolas Lissner and Patrick Kiss 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 sign used to indicate rates of change is The statements and forecasts represent estimates based on all of based on economic considerations: improvements are marked with the information available at the current time. If the assumptions on a plus sign (+), deteriorations with a minus sign (-). which these statements and forecasts are based do not materialise, the actual results may differ from those currently forecast. Deutsche EuroShop 12