Deutsche EuroShop AG — Call Transcript 2016

May 13, 2016

CONFERENCE CALL

QUARTERLY STATEMENT 3M 2016

RETAILERS

RETAIL TURNOVER 3M 20161

Retail sector	% change to 2015	rent-to-sales ratio in %	% of sales	% of space
Department stores	0.7	6.0	7.8	13.6
Food	-0.1	7.3	9.5	6.6
Fashion textiles	0.2	12.4	29.7	39.3
Shoes & leather goods	-2.7	14.6	5.6	7.0
Sports	1.1	8.9	4.4	5.1
Health & beauty	0.1	7.2	11.7	5.9
General retail	1.5	11.2	7.9	7.9
Electronics	1.0	4.2	14.1	8.5
Services	3.3	4.6	4.7	1.6
Food catering	-0.6	12.8	4.6	4.5
Total	0.4	9.2	100.0	100.0

• Retail turnover development on a like-for-like basis: Germany +0.4%, abroad +2.2% DES-Portfolio overall: +0.6%
• Absolute turnover development: Germany +0.8%, abroad +2.7% DES-Portfolio overall: +1.0%

1 German centers on a like-for-like basis (turnover: €2.0 billion)

PROFIT AND LOSS ACCOUNT 3M 2016

in € thousand	01.01. – 31.03.2016	01.01 – 31.03.2015	Change
Revenue	50,737	50,603	0.3%
Property operating and management costs	-4,764	-4,503
Net operating income	45,973	46,100	-0.3%
Other operating income	168	611
Corporate costs	-1,556	-2,069
EBIT	44,585	44,642	-0.1%
Other financial income and expenses	394	352
Interest income	13	7
Interest expense	-13,744	-14,394
At equity result	5,473	5,358
Profit/loss attributable to limited partners	-4,388	-4,187
Net finance costs	-12,252	-12,864	4.8%
Measurement gains/losses	-1,356	-451
EBT	30,977	31,327	-1.1%
Taxes	-6,111	-6,008
Consolidated profit	24,866	25,319	-1.8%

KEY FIGURES 3M 2016

	31.03.2016	31.03.2015	Change
FFO per Share (€)	0,58	0,57	1.8%
Earnings per share (€, undiluted)	0,46	0,47	-2.1%
EPRA Earnings per share (€, undiluted)	0,49	0,48	2.1%

FUNDS FROM OPERATIONS (FFO)

in € thousand	31.03.2016	per share1	31.03.2015	per share1
Consolidated net profit	24,866	€0.46	25,319	€0.47
- IAS 40 valuation	1,356	€0.02	451	€0.01
- At-equity valuation	377	€0.01	7	€0.00
+ Costs conversion privilege	242	€0.00	289	€0.00
+ Deferred taxes	4,713	€0.09	4,675	€0.09
FFO	31,554	€0.58	30,741	€0.57

1 The sum of the amounts may not equal the totals due to rounding

EARNINGS PER SHARE (EPRA)

in € thousand	31.03.2016	per share1	31.03.2015	per share1
Consolidated net profit	24,866	€0.46	25,319	€0.47
- IAS 40 valuation	1,356	€0.02	451	€0.01
- At-equity valuation	377	€0.01	7	€0.00
+ Deferred taxes	-369	€0.00	-74	€0.00
EPRA Earnings	26,230	€0.49	25,703	€0.48
Number of shares (adj.)	53,945,536		53,945,536
EPRA Earnings (diluted)		€0.46		€0.45
Number of shares (adj.)	57,105,094		57,007,385

FINANCIALS

1 The sum of the earnings per share amounts may not equal the totals due to rounding

BALANCE SHEET 3M 2016

in € thousand	31.03.2016	31.12.2015	Change
Non-current assets	3,766,298	3,768,118	-1,820
Current assets	106,971	83,496	23,475
Total assets	3,873,269	3,851,614	21,655
Group equity	1,788,982	1,767,859	21,123
Right to redeem of limited partners	293,543	293,113	430
Total equity	2,082,525	2,060,972	21,553
Financial liabilities	1,403,110	1,407,607	-4,497
Deferred tax liabilities	313,188	309,528	3,660
Other liabilities	74,446	73,507	939
Total equity and liabilities	3,873,269	3,851,614	21,655

	31.03.2016	31.12.2015
Equity ratio1	53.8%	53.5%
LTV ratio	34.7%	35.5%

¹ incl. non controlling interests

LOAN STRUCTURE INCL. CONVERTIBLE BONDS1,2

Interest lockin	Duration	Principle amounts (€ thousand)	Share of total loan	avg. interest rate
Up to 1 year		41.8	3.0%	1.87%
1 to 5 years	3.5	565.4	40.3%	3.87%
5 to 10 years	6.6	707.4	50.5%	3.34%
Over 10 years	11.5	87.0	6.2%	5.08%
20161 Total	5.7	1,401.6	100%	3.69%

• 21 German Banks
• Weighted maturity of fixed interest periods 5.7 years1

¹ as of 31 March 2016 2 excl. non-consolidated loans

MATURITIES UNTIL 20211,2

FINANCIALS

in € thousand	end of fixed interest periods respectively expiring loans	avg. interest rate	regular redemption payments	total maturities
2016	79,800	4.92%	13,300	93,100
2017	96,100	1.75%	16,500	112,600
2018	72,100	4.60%	17,800	89,900
2019	123,100	4.73%	14,700	137,800
2020	134,100	4,52%	10,100	144,200
2021	198,300	4,48%	8,200	206,500
	398,600

Non-consolidated loans1

In € thousand	End of fixed interest periods respectively expiring loans	Avg. interest rate	DES' share	City-Arkaden, Klagenfurt: €91.8m; 4.30% interest rate fixed: 2.18% (15y)
2016	144,900	4.94%	50%	Phoenix-Center, Hamburg: €53.1m; 6.06% interest rate
2017-2020	0			fixed: 1,83% (10y)
2021	49.200	4.66%	50%		1 as of 31 March 2016 2 excl. non-consolidated loans
				Phoenix-Center, Hamburg

REVENUE BRIDGE 3M 2016 €m FINANCIALS 50.6 +0.1 = +0.3% 50.7 3M 2015 Increase in rents 3M 2016 Revenue growth:

Conference Call – Quarterly Statement 3M 2016 13 May 2016 11

FINANCIALS

EBT BRIDGE 3M 2016

€m

PROFIT BRIDGE 3M 2016

€m FINANCIALS

GERMAN CONSUMER PRICE INDEX

DIVIDEND & PERFORMANCE

TREND OF SHARE (INDEXED)

SHARE

PERFORMANCE4
		DES	DAX	EPRA5	REX6	OEF8
1 year	(2015)	+15.3%	+9.6%	+20.0%	+0.5%	+3.3%
3 years	+41.8% =	+12.3% p.a.	+12.2% p.a.	+18.5% p.a.	+2.3% p.a.	+2.2% p.a.
5 years	+67.4% =	+10.8% p.a.	+9.2% p.a.	+14.3% p.a.	+4.0% p.a.	+2.3% p.a.
Since IPO (2001)	+285.4%=	+9.4% p.a.	+3.5% p.a.	+8.9% p.a.	+4.7% p.a.	+3.4% p.a.

• ¹ respectively paid for the previous FY
• ² 2016: as of 11 May 2016
• ³ paid on 19 June 2015
• ⁴ as of 31 Dec. 2015
• ⁵ EPRA/NAREIT Europe
• ⁶ German government bonds index
• ⁷ proposal
• ⁸ Open ended real estate funds

FORECAST

OUTLOOK

• Refinancing of €79.8 million in 2016
• Increase in dividend to €1.35 per share
• Currently in the due diligence phase for a participation in a German center which would fit well into the portfolio

COMPANY

KEY DATA OF THE SHARE

Listed since	02.01.2001
Nominal capital	€53,945,536.00
Outstanding shares	53,945,536
Class of shares	Registered shares
Dividend 2015 (proposal)	€1.35
52W High	€48.00
52W Low	€35.76
Share price (11 May 2016)	€41.20
Market capitalisation	€2.22 billion
Avg. turnover per day last 12 months (XETRA)	146,040 shares
Indices	MDAX, EPRA, GPR, MSCI Small Cap, EURO STOXX, STOXX Europe 600
Official market	Prime Standard Frankfurt and XETRA
OTC market	Berlin-Bremen, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart
ISIN	DE 000 748 020 4
Ticker	DEQ, Reuters: DEQGn.DE
Market maker	Oddo Seydler

APPENDIX

FINANCIAL CALENDAR

2016

12.05.	Quarterly Statement 3M 2016
26.05.	Kempen European Property Seminar, Amsterdam
01.06.	Kepler Cheuvreux German Property Day, Paris
01.06.	Roadshow Warsaw, Erste Securities Polska
08.06.	Deutsche Bank dbAccess German Swiss & Austrian Conference, Berlin
15.06.	Annual General Meeting, Hamburg
01.07.	ESN equinet European Conference, Frankfurt
07.07.	Roadshow London, Societe Generale
07.07.	Roadshow Zurich, Bankhaus Lampe
08.07.	Roadshow Cologne-Dusseldorf, DZ Bank
08.07.	Roadshow Stuttgart, ESN equinet
12.07.	DSW Private Investors Forum, Frankfurt
15.08.	Half-year Financial Report 2016
17.08.	Roadshow Helsinki, ESN equinet

13.09.	Bank of America Merrill Lynch Global Real Estate Conference, New York
14.09.	UBS Best of Germany Conference, New York
19.09.	Goldman Sachs & Berenberg German Conference, Munich
20.09.	Baader Investment Conference, Munich
04.-06.10.	EXPO Real, Munich
10.10.	Roadshow Madrid, M.M. Warburg
13.10.	Roadshow Brussels, DZ Bank
14.11.	Quarterly Statement 9M 2016
16.11.	Roadshow Amsterdam, ABN AMRO
16.11.	Roadshow Geneva, Kepler Cheuvreux
17.11.	Roadshow Zurich, Kepler Cheuvreux
22.11.	German Equity Forum, Frankfurt

APPENDIX

CONTACT

NICOLAS LISSNER Manager Investor & Public Relations

OLAF BORKERS Chief Financial Officer

WILHELM WELLNER Chief Executive Officer PATRICK KISS Head of Investor & Public Relations

Deutsche EuroShop AG Investor & Public Relations Heegbarg 36 22391 Hamburg

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

ir-mall.com

• facebook.com/euroshop
• flickr.com/desag
• slideshare.net/desag
• twitter.com/des_ag
• youtube.com/DeutscheEuroShop

Important Notice: Forward-Looking Statements

Statements in this presentation relating to future status or circumstances, including statements regarding management's plans and objectives for future 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 materially different from those that may be expressed or implied by such statements. Deutsche EuroShop does not intend to update these forward-looking statements and does not assume any obligation to do so.

APPENDIX