Deutsche EuroShop | Company Presentation | 03/12

COMPANY
PRESENTATION

09.03.2012

03/12

09.03.2012 COMPANY PRESENTATION

COMPANY

Equity Story
 Deutsche EuroShop is Germany´s only public company that invests solely in
shopping centers.
 Shopping centers are attractive investments
because of
– continuously positive development of rents
– stable long term growth
– prime locations
– high quality standards
 Deutsche EuroShop does not seek short-term success, but rather long-term growth
and the resulting stable increase in the value of the portfolio.

2


COMPANY

At a Glance
 19 shopping centers on high street and in established locations –
15 in Germany, 2 in Poland and one each in Austria and Hungary

Lettable space* approx. 905,000 sqm* avg. lettable space
per DES-center:
Retail shops approx. 2,310*
inner city 37,060
Market value approx. €3.6 billion* sqm est. Locations
102,000 sqm
Rents per year €244 million*
Occupancy rate 99%

* 100%-view
 2011 portfolio valuation: 5.92% net initial yield (EPRA)
 Professional center management by ECE, the European market leader in this industry

3


COMPANY

Key Figures1)
REVENUE EBIT NUMBER OF SHARES
€m €m mn
+19%2) +21%2) +11%2)
190.0 165.7
51.63 51.63
144.2 124.0
127.6 110.7
115.3 98.1 34.37 34.37 34.37
95.8
78.5

2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

1) Preliminary results
FFO PER SHARE DIVIDEND PER SHARE NAV PER SHARE 2) 2006-2011, Compound Annual
Growth Rate (CAGR)
€ € € 3) Proposal to the AGM
4) EPRA NAV
+10%2) +1.2%2) +0.6%2)
1.61
1.38 1.40 1.35 1.10 1.103) 27.654)
27.43
26.91 26.63
1.12 26.374)
1.05 1.05 1.05

4
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011


COMPANY

Lease System
rent
5
Participation
in sales
4
growth of retail
industry
turnover-linked rent
3

2

1
CPI-linked minimum rent
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 years

Lease standards:
 10 years lease only
 no break-up option
 turnover-linked rents
 minimum rents are CPI-linked

5


COMPANY

Lease System
 avg. rent per sqm and year: €250
 avg. turnover per sqm and year: €4,700 (avg. German retail: €3,430)
 Rent-to-sales-ratio: 7-11%
 weighted maturity of rental contracts: 7.4 years

5% 4%
190.0
190

4% 165
3%
144.2
140
3% 2.8% 127.6
2.6%
2.4% 115.3 2%
2.20% 115
2.0%
2% 1.8% 1.8%
92.9 95.8 1.7%
90
72.1 1%
1%
61.4 65

0% 40 0%
2004 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011

Revenue Rate of turnover-linked rent German inflation DES´like-for-like revenue

6


COMPANY

Targets
 Long term net asset value enhancement
 Main focus on NAV and dividend
 “buy & hold”-strategy, Continuous growth
 Stable and attractive dividends
Dividend yield: currently 4.2%
 Investment-focus:
At least 75% Germany and up to 25% Europe
 Portfolio extension by 10% per year
– by acquisition of new shopping centers
– by increasing existing amounts of holdings
– by expansion of portfolio centers

7


SHOPPING CENTERS

Overview

8


SHOPPING CENTERS

Germany

A10 Center Main-Taunus-Zentrum Altmarkt-Galerie
Location Wildau/Berlin Sulzbach/Frankfurt Dresden
Investment 100% 52.0% 67.0%
Lettable space sqm 118,500 117,900 77,000
Parking 4,000 4,500 500
Number of shops approx. 200 approx. 170 approx. 200
Occupancy rate 100% 100% 93%
Catchment area approx. 1.2 m. inhabitants approx. 2.2 m. inhabitants approx. 1.0 m. inhabitants
Opening/refurbishm. 1996 / 2011 1964 / 2004 / 2011 2002 / 2011

9


SHOPPING CENTERS

Germany

Rhein-Neckar-Zentrum Allee-Center Billstedt-Center
Location Viernheim Magdeburg Hamburg
Investment 100% 50% 100%
Parking 3,800 1,300 1,500
Opening/refurbishm. 1972 / 2002 1998 / 2006 1969 / 1977 / 1996

10


SHOPPING CENTERS

Germany

Phoenix-Center Forum Allee-Center
Location Hamburg Wetzlar Hamm
Investment 50.0% 65.0% 100%
Parking 1,600 1,700 1,250
Opening/refurbishm. 2004 2005 1992 / 2003 / 2009

11


SHOPPING CENTERS

Germany

City-Galerie Rathaus-Center City-Arkaden
Location Wolfsburg Dessau Wuppertal
Investment 100% 100% 100%
Parking 800 850 650
Opening/refurbishm. 2001 / 2006 1995 2001 / 2004

12


SHOPPING CENTERS

Germany

City-Point Stadt-Galerie Stadt-Galerie
Location Kassel Passau Hameln
Investment 100% 75.0% 100%
Parking 220 500 500
Opening/refurbishm. 2002 / 2009 2008 2008

13


SHOPPING CENTERS

Europe

Galeria Bałtycka City Arkaden Árkád
Location Gdansk, Poland Klagenfurt, Austria Pécs, Hungary
Investment 74.0% 50.0% 50.0%
Parking 1.050 880 880
Opening/refurbishm. 2007 2006 2004

14


SHOPPING CENTERS

Europe

Galeria Dominikanska
Location Wroclaw, Poland
Investment 33.3%
Lettable space sqm 32,900
Parking 900
Number of shops approx. 100
Occupancy rate 99%
Catchment area approx. 1.0 m. inhabitants
Opening/refurbishm. 2001

15


SHOPPING CENTERS

Our Tenants

16


SHOPPING CENTERS

Tenants Structure Top 10 Tenants*

Low level of
dependence on
the top 10 tenants

Metro Group 6.0%
Douglas Group 4.4%
H&M 2.7%
New Yorker 2.3%
* in % of total rents as at
Deichmann 1.9% 31 December 2011

Peek & Cloppenburg 1.9%
C&A 1.7%
REWE 1.6%
Inditex Group 1.4%
Esprit 1.4% Other tenants
Total 25.3% Total 74.7%

17


SHOPPING CENTERS

Maturity Distribution of Rental Contracts*

 Long-term
contracts
guarantee rental
2012: 3% income
2017 et sqq: 2013: 2%  Weighted
69% maturity
2014: 8% 7.4 years

2015: 8%
* as % of rental income as at
31 December 2011

2016: 10%

18


SHOPPING CENTERS

Sector and Retailer Mix*
non-
food/electronics Balanced sector
21% department
stores and retailer
11% diversification

food
7%

health & beauty
6%
catering
4% inter-/national retailers
fashion services 47%
50% * as % of rental income as at
1% 31 December 2011

local entrepreneurs
29%

regional retail chains
24%
19


FINANCIALS

Key Figures 2011 (Preliminary Results)

€ million 2011 2010 +/-
Revenue 190.0 144.2 32%
Net operating income 171.6 129.0 33%
EBIT 165.7 124.0 34%
Net finance costs -79.1 -60.2 -31%
Valuation result 41.8 33.1 26%
EBT 128.4 97.0 32%
Consolidated profit 93.4 -7.8
FFO per share 1,61 1,35 19%
Earnings per share 1,81 -0,17

€ million 31.12.2011 31.12.2010 +/-
Total equity 1,472.9 1,441.5 2%
Interest bearing debt 1,472.1 1,288.2 14%
Other debt 69.3 49.1 41%
Total assets 3,225.1 2,963.6 9%
Equity ratio 45.7% 48.7%
LTV ratio 47% 47%

20


FINANCIALS

Loan Structure*
Interest Principle amounts Share of avg.
lockin Duration (€ thousand) total loan interest rate
Up to 1 year 137,598 9.4% 3.47%
1 to 5 years 3.60 589,811 40.2% 4.87%
5 to 10 years 9.49 600,368 40.9% 4.52%
Over 10 years 15.27 139,254 9.5% 4.73%
Total 2011 6.58 1,467,031 100.0% 4.59%

6.00 8
 Banks: * as of 31 Dec. 2011
7
23 German and 5.50
1 Austrian 5.50 5.36 5.33 6
5.27
5
 Weighted maturity 5.03
of fixed interest periods 5.00 4
6.6 years 4.59 3
4.50 2
 Weighted maturity
of the loans >15 years 1
4.00 0
2006 2007 2008 2009 2010 2011 yrs
%

avg. interest rates weighted maturities
21


FINANCIALS

Refinancings of 2011
in € thousand new old +/-
Principle amounts 300,000 305,000 -5,000
Duration 8.6yrs 2.4yrs +6.2yrs
Interest rate 4.07% 5.42% -1.35%

Maturities until 2016*
(re-)financing end of fixed interest avg. regular
planned in periods respectively interest redemption total
in € thousand 2012 expiring loans rate payments maturities * as of 31 Dec. 2011

2012 (new) 60,000 0 22,100 22,100
2013 176,600 3.75% 19,400 196,000
2014 65,600 93,600 5.84% 18,800 112,400
2015 78,600 5.06% 17,300 95,900
2016 171,500 5.43% 14,000 185,500

22


FINANCIALS

Valuation* – Investment Properties 2011
Discounted cash-flow method 2010 2011 actual
Macro-location 20.0%
expected yield of 10-year
German federal bonds 4.44% 4.34% 1.92% 1) Competitive environment 6.4%
average applied risk premiums 2.21% 2.34% Micro-location 9.6%
average discount rate 6.65% 6.68% Property quality 4.0%
average property operating Tenants risk 10.0%
and management costs 11.70% 11.80%
net initial yield (EPRA) 5.89% 5.92%

6.68 6.80 6.65 6.68
6.56 6.54 6.44 6.38
5.82 5.89 5.92
5.64
5.48 5.46 5.39 5.40 * External appraisers:
Feri Research and
GfK GeoMarketing
2004 2005 2006 2007 2008 2009 2010 2011 1) Status: 31 Feb 2012

discount rate net initial yield

Sensitivity analysis
in € thousand Basis change of -25bps change of +25bps
Rent increase rates 1.70% -106,300 111,700
Discount rate 6.68% 98,100 -93,300
Net initial yield 5.92% 138,000 -126,800
Cost ratio 11.80% 9,000 -9,000

23


FINANCIALS

Forecast
REVENUE
€m
207-211
190.0 178-182
144.2
115.3 127.6
95.8 174-178
+20% +11% +13% +32% +10% +2%
CAGR1): +19%

EBIT
€m
177-181
165.7 151-155
110.7 124.0
98.1
77.2 147-151
+27% +13% +12% +34% +8% +3%
CAGR1): +21%
1) Compound Annual Growth Rate
EBT BEFORE VALUATION (CAGR) 2007-2011
€m
2) incl. at-equity consolidation scenario
90-93 94-97 3) at-equity consolidation
86.5 4) incl. dilution
63.9
48.7 54.9
38.9
+25% +13% +16% +36% +6% +4%
1 2 3 4 5 6 7
CAGR1): +22%

FFO PER SHARE
€m
1.64-1.68 1.70-1.74
1.61
1.38 1.40 1.40
1.12
+23% +1% +0% +15% +3% +4%
CAGR1)4): +9%
2007 2008 2009 2010 2011 20122)
2012 20133)
2013
24


SHOPPING CENTER SHARES

Dividend & Performance

Dividend1) Share price2)
1.20 28.08 28.98 30.00
26.15
24.30 24.80
1.15 23.73 23.50 23.67
25.00
1.10 1.103)
1.10 19.26
20.00
16.88 1.05 1.05 1.05 1.05
1.05
1.00 15.00
1.00
0.96 0.96 0.96
10.00
0.95

0.90 5.00 1) respectively paid for the previous
financial year
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2) 2012: as of 5 March 2012
3) proposal to the AGM

PERFORMANCE
DES DAX
1 year (2011) -14.4% -14.7%
3 years +16.4% = +5.2% p.a. +7.0% p.a.
5 years +9.1% = +1.8% p.a. -2.2% p.a.

25
Since IPO (2001) +104.8%= +6.7% p.a. -0.8% p.a.



Shareholder Structure

 9,900
shareholders
 Free float 85.0%

Otto Family
Private 15.0% USA 6%
Investors * Status: 1 March 2012
29.2% BlackRock 3.0% UK 6%
Hertie BE 4%
Germany 74%
Foundation 3.0% CH 2%
FR 3%
Other 5%
Institutional Investors
49.8%

26



Analysts‘ Consensus*
avg. / in € 2011 2012
EBIT (€ million) 161.4 175.5 Status: 7 Mar 2012
FFO per share 1.50 1.66  28 analysts: one of the
EPS 1.52 1.90 best covered real estate
Dividend 1.12 1.18 companies in Europe*
Price target 27.78

Sell Underperform Neutral Outperform Buy

 Green Street  Credit Suisse  ABN Amro  Commerzbank  Baader Bank  Metzler
Advisors  Kempen & Co.  Aurel  Edge Capital  Bankhaus Lampe  M.M. Warburg
 Kepler Capital  Deutsche Bank  equinet  Bank of America & Co
Markets  HSBC  West LB Merrill Lynch  Rabobank
 Petercam Bank  ING  Berenberg Bank  Silvia Quandt * according to EPRA survey 3/2011
 Close Brothers Bank
 Natixis
Seydler  Societe
 DZ Bank Generale
 Hamburger  UBS
Sparkasse

100%

50%

0%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

27
04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12
positive neutral negative


SHOPPING CENTER SHARE

10 Reasons to Invest
1. The only public company in Germany to invest solely
in shopping centers
2. Prime locations
3. Proven, conservative strategy
4. Stable cash flow with long term visibility
5. Shareholder-friendly dividend policy
6. Experienced management team
7. Excellent track record
8. Centers almost 100% let
9. Inflation-protected rental agreements
10. Solidity combined with growth potential

28


APPENDIX

Key Data of the Share

Listed since 02.01.2001
Nominal capital €51,631,400.00
Outstanding shares 51,631,400
Class of shares Registered shares
Dividend 2011* €1.10
52W High €29.18
52W Low €22.05
Share price (05.03.2012) €26.15
Market capitalisation €1.35 billion
* proposal for AGM on 21. June 2012
avg. turnover per day last 12 months (XETRA) 125,400 shares
MDAX, EPRA, GPR, MSCI Small Cap,
Indices
EURO STOXX, STOXX Europe 600
Prime Standard
Official market
Frankfurt and XETRA
Berlin-Bremen, Dusseldorf, Hamburg,
OTC market
Hanover, Munich and Stuttgart
ISIN DE 000 748 020 4
Ticker DEQ, Reuters: DEQGn.DE
Market makers Close Brothers Seydler, WestLB
29


APPENDIX

Purchasing Power Maps

30


APPENDIX

Our partner: ECE

 ECE develops, plans, builds, leases and manages large commercial real estate in the
sectors shopping, office, industries since 1965
 originally ECE was an abbreviation for the German word
Einkaufscenterentwicklung (Shopping center development)
 100% privately owned by the Otto family
 active in 15 European countries
 European market leader in the shopping center business
 Assets under management:
– 132 shopping centers
– 4.2 million sqm overall sales area
– approx.14,000 retail businesses
– €15.3 billion in annual sales

MANY INVESTORS RELY ON ECE:

31


APPENDIX

Environment
 Climate protection is one of the most important issues for Deutsche EuroShop. We believe
that sustainability and profitability, the shopping experience and environmental awareness
do not have to be opposites. Long-term thinking is part of our strategy. This includes playing
our part in environmental protection.
 In 2010, with the exception of the A10 Center, all our German shopping centers had
contracts with suppliers that use regenerative energy sources such as hydroelectric power
for their electricity needs. The “EnergieVision” organisation certified the green electricity for
eleven of our German centers with the renowned “ok-power”
accreditation in 2010. From 2011 onwards, all centers
in the Deutsche EuroShop German portfolio will be powered by
green electricity. We plan to switch the centers in other countries
to green electricity as well in the next few years.
 The twelve participating centers used a total of around 47.8 million kWh of green electricity
in 2010. As a result, based on conservative calculations this meant a reduction of around
18,800 tonnes in carbon dioxide emissions – this equates
to the annual CO2 emissions of around 850 two-person households. We have already
reduced the energy consumption of our shopping centers by using
heat exchangers and energy-saving light bulbs.
 Deutsche EuroShop, through its shopping centers, also supports a range of activities at
local and regional level in the areas of ecology, society and economy.

32


APPENDIX

Financial Calendar
2012
09.03. Preliminary Results FY2011 11.06. Roadshow Vienna, Berenberg

15.–16.03. Kempen & Co. Property Seminar, New York 21.06. Annual General Meeting, Hamburg

20.03. Roadshow Munich, Baader Bank 14.08. Interim report H1 2012

21.03. Roadshow Zurich, WestLB 16.08. Roadshow Edinburgh, M.M. Warburg

21.03. Roadshow London, BoAML 04.–05.09. Kempen & Co. German Property Seminar,
Berlin
22.03. Roadshow Amsterdam, Commerzbank
05.09. Bank of America Merrill Lynch pre-EPRA Event,
22.03. Roadshow Paris, Kepler Berlin
27.03. Roadshow Hamburg, equinet 06.–07.09. EPRA Annual Conf., Berlin
03.04. Deutsche Bank's VIP Real Estate Event, 13.09. Roadshow Amsterdam, Rabo
Frankfurt
18.09. Roadshow Copenhagen, equinet
19.04. Commerzbank Corporate Day, London
19.09. Roadshow Helsinki/Stockholm, Berenberg
26.–27.04. Bankhaus Lampe Deutschland-Konferenz,
Baden-Baden 26.09. UniCredit Kepler German Investment
Conference, Munich
27.04. Publication of the Annual Report 2011
27.09. Baader Investment Conference, Munich
15.05. Interim report Q1 2012
09.10. ExpoREAL, Munich
22.05. Metzler Property Day, Frankfurt
17.10. Roadshow Brussels, ING
23.05. CA Cheuvreux Pan-Europe Forum, London
13.11. Nine-month report 2012
30.05. Kempen & Co. European Property Seminar,
Amsterdam

33


APPENDIX

Contact
Deutsche EuroShop AG
Investor & Public Relations
Oderfelder Straße 23
20149 Hamburg

Tel. +49 (40) 41 35 79 - 20 / -22
Fax +49 (40) 41 35 79 – 29 Claus-Matthias Böge
Chief Executive Officer
E-Mail: ir@deutsche-euroshop.com
Web: www.deutsche-euroshop.com

ir-mall.com
facebook.com/euroshop
flickr.com/desag
Olaf G. Borkers
slideshare.net/desag Chief Financial Officer
twitter.com/des_ag
youtube.com/DeutscheEuroShop

Important Notice: Forward-Looking Statements
Statements in this presentation relating to future status or circumstances,
Patrick Kiss
including statements regarding management’s plans and objectives for future Head of Investor & Public Relations
operations, sales and earnings figures, are forward-looking statements of goals
and expectations based on estimates, assumptions and the anticipated effects of
future events on current and developing circumstances and do not necessarily
predict future results.
Many factors could cause the actual results to be materiallydifferent from those
that may be expressed or implied bysuch statements.
Deutsche EuroShop does not intend to update these forward-looking statements
Nicolas Lissner

34
and does not assume any obligation to do so. Manager Investor & Public Relations

Deutsche EuroShop | Company Presentation | 03/12

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