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INTERIM REPORT FOR FIRST HALF OF 2009



LETTER FROM THE
EXECUTIVE BOARD
DEAR SHAREHOLDERS,                                                           in a new loan agreement alongside a loan for 150.0 million due to be
DEAR READERS,                                                                extended in October 2009. This refinancing will reduce our annual
                                                                             interest expense by around 11 million and increase the average
The first six months of 2009 went according to plan for Deutsche             residual maturity of our loans to roughly eight years. By the end of
EuroShop. With revenue at 163.0 million, we exceeded earnings                2012, we will have no long-term borrowings to renegotiate.
in the first half of 2008 by 14%. Net operating income (NOI) also
improved by 14% to 155.5 million, while EBIT climbed 15% to                  Shortly after completing this refinancing, we also further improved
153.8 million.                                                               the Company’s equity base by increasing the share capital to
                                                                             137,812,496.00. The 3,437,498 new shares were subscribed by insti-
These rises were partly the result of the contributions to operating         tutional investors via an accelerated bookbuilding process. The
income made by the newly opened shopping centers in Hameln                   gross proceeds for the Company from the capital increase totalled
and Passau, in their first full first half-year. In addition, the increase   approximately 167 million, which we will use to fund further growth
in our share in City-Point in Kassel from 40% to 90% at the start of         and to seize investment opportunities that may arise.
2009 allowed us to fully consolidate this center, with correspond-
ing effects on the balance sheet and income statement.                       In the interim report on the first quarter, we expressed optimism
                                                                             that we would also be able to pay a dividend of 11.05 per share
Funds from operations (FFO) improved by 9% from 10.70 to 10.76               for the current financial year. Now that the first six months have
per share. Consolidated profit was boosted by positive exceptional           passed, we are in a position to reaffirm this confident view.
and currency effects on measurement gains, which rose 41% from
121.6 million to 130.5 million. Earnings per share correspondingly           Hamburg, August 2009
increased from 10.63 to 10.89.

After the end of the period under review, we refinanced two loans
with a total volume of 1132.2 million for ten years at the start of July.
A loan for 182.2 million that will not mature until 2013 was included        Claus-Matthias Böge                        Olaf G. Borkers


KEY GROUP DATA                                                               KEY SHARE DATA


                                 01.01. – 30.06.   01.01. – 30.06.            Sector / industry group                 Financial Services / Real Estate
 3 million                               2009              2008      +/–
                                                                              Share capital on 30.06.2009                             134,374,998.00
 Revenue                                  63.0              55.2     14%
                                                                              Number of shares on 30.06.2009
 EBIT                                     53.8              46.9     15%      (no-par value registered shares)                             34,374,998
 Net finance costs                       -27.7             -22.8     -21%     Dividend 2009                                                     11.05
 EBT                                      36.9              26.3     40%      Share price on 30.12.2008                                        124.30
 Consolidated profit                      30.5              21.6     41%      Share price on 30.06.2009                                        121.95
 FFO per share (1 )                       0.76              0.70      9%
 EPS (1 )                                 0.89              0.63     41%      Low / high in the period under review                    118.66 / 126.00
                                                                              Market capitalisation on 30.06.2009                        1755 million
                                    30.06.2009        31.12.2008              Prime Standard                                     Frankfurt und Xetra
 Equity *                             1,009.9              977.8      3%      OTC trading                                Berlin-Bremen, Düsseldorf,
 Liabilities                          1,122.0           1,029.1       9%                                               Hamburg, Hannover, München
                                                                                                                                      und Stuttgart
 Total assets                         2,131.9           2,006.8       6%
                                                                              Indices                                 MDAX, EPRA, GPR 250, EPIX 30,
 Equity ratio (%) *                       47.4              48.7
                                                                                                                                           HASPAX
 LTV-ratio (%)                            48.6              46.1
                                                                              ISIN                                                   DE 000748 020 4
 Gearing (%)*                              111               105
                                                                              Ticker symbol                                DEQ, Reuters: DEQGn,DE
 Cash and cash equivalents                61.3              41.7     47%

* incl. minorities
2   DEUTSCHE EUROSHOP AG          INTERIM REPORT FOR FIRST HALF OF 2009




                                                                             Domestic consumption has decoupled somewhat from these events.
    BUSINESS AND ECONOMIC                                                    The GfK research group regularly reports that consumer spending
    CONDITIONS                                                               and confidence are increasing all the time, driven by hopes of immi-
                                                                             nent economy recovery. At the same time, researchers have warned
                                                                             of over-optimism. Should unemployment rise significantly in late
    GROUP STRUCTURE AND                                                      autumn, it is argued that this will hurt consumer sentiment.
    OPERATING ACTIVITIES
                                                                             To date, we have been unable to discern any trends in our segment
    Activities                                                               that might lead to falling rental income. The revenue of retailers in our
    Deutsche EuroShop is the only public company in Germany to               shopping centers is very stable. Consumption continues to be sup-
    invest solely in shopping centers in prime locations. It currently has   ported by low energy prices and practically non-existent inflation.
    investments in 16 shopping centers in Germany, Austria, Poland
    and Hungary. The Group generated the reported revenue from
    rental income on the space let in its shopping centers.

    Group’s legal structure                                                  RESULTS OF OPERATIONS,
    Due to its lean personnel structure and concentration on just one
    operating segment, the Deutsche EuroShop Group is centrally organ-
                                                                             FINANCIAL POSITION AND
    ised. The Group managing company is Deutsche EuroShop AG. It
    is responsible for corporate strategy, portfolio and risk manage-
                                                                             NET ASSETS
    ment, financing and communication.
                                                                             Increase in the shareholding in City-Point Kassel
    The Company’s registered office is in Hamburg. Since its estab-          With effect from 2 January 2009, we increased our shareholding in
    lishment in 2000, Deutsche EuroShop AG has been an Aktien-               City-Point Kassel GmbH & Co. KG from 40% to 90%. The purchase
    gesellschaft (public company) under German law. The individual           price of the shares was 116.4 million and was paid in cash.
    shopping centers are managed as separate companies. Depending
    on the share of the nominal capital held, these are either fully con-    The following assets and liabilities were thereby acquired at fair
    solidated (over 50% share) or proportionally consolidated (up to         value:
    50% share) as investment properties. The investment in Galeria
    Dominikanska in Wroclaw is recognised under non-current financial
                                                                              T1
    assets (33.3% share).
                                                                              Current assets                                                   1,263
    The share capital totals 137,812,496 (following the capital increase      Non-current assets                                              69,840
    on 7 July 2009) and is composed of 37,812,496 no-par value regis-         Current liabilities                                                176
    tered shares. The notional value of each share is 11.00.
                                                                              Non-current liabilities                                         46,488


    MACROECONOMIC AND                                                        Until 31 December 2008, the property company had been propor-
    SECTOR-SPECIFIC CONDITIONS                                               tionally included in the consolidated financial statements. From
                                                                             2009, its financial statements will be consolidated in full, which will
    After the German economy experienced a massive downturn in the           have a corresponding impact on all the items in the consolidated
    first quarter of 2009, there are now increasing signs that the econ-     financial statements. The higher revenue and cost items and the
    omy will stabilise and the recession come to an end in the second        changes in assets and liabilities are essentially the result of the
    half of the year. However, it is difficult to predict when the global    change in the scope of consolidation. The first-time consolidation
    economy will return to growth. The reorganisation and reform of          resulted in a positive difference in accordance with IFRS 3 in the
    the international financial system continue to be the focal point of     amount of 18.1 million, which flowed into the measurement gains
    the shake-out. The efforts of the monetary, fiscal and supervisory       and increased net income.
    policymakers have been geared in this direction for almost two
    years now. Public funds have been used on a vast scale for economic
    packages and bailouts in the financial sector. The resulting levels of
    national debt in the western industrialised countries are worrying,
    and massive systemic risks continue to exist within the economic
    and financial markets.
3   DEUTSCHE EUROSHOP AG           INTERIM REPORT FOR FIRST HALF OF 2009




    RESULTS OF OPERATIONS                                                     EBT up 40%
                                                                              EBT rose from 126.3 million to 136.9 million. This corresponds to a
    14% revenue increase                                                      year-on-year increase of 110.6 million or 40% and is mainly attribut-
    Revenue in the first half of 2009 totalled 163.0 million, represen-       able to the effects already described under measurement gains.
    ting a 14% rise year-on-year (155.2 million). The full consolidation
    of the results of the Kassel center resulted in higher revenue con-       FFO per share: 50.76
    tributions than in the past. In addition, the two centers opened in       FFO (funds from operations) increased by 10.06 from 10.70 to 10.76
    Hameln and Passau in 2008 also contributed to revenue growth.             per share (number of shares as at 30 June 2009). This represents
    Revenue from existing properties climbed 1.4% year-on-year.               an increase of 9% and was primarily achieved through the newly
                                                                              opened properties and the “Kassel effect”.
    Higher operating and administrative costs
    for property as a result of new centers                                   Consolidated profit: 530.5 million;
    Higher expenses were incurred for the operation of the shopping           earnings per share: 50.89
    centers in the period under review due to the opening of the centers      Consolidated profit totalled 130.5 million, up by 18.9 million ver-
    in Hameln and Passau. The operating and administrative costs for          sus the first six months of 2008 (121.6 million). This is equiva-
    property were 17.5 million in the reporting period, compared with         lent to profit growth of 41%. Earnings per share consequently
    16.7 million in the same period the previous year.                        rose from 10.63 to 10.89 (number of shares as at 30 June 2009).
                                                                              Of this, 10.63 resulted from operating profit and 10.26 from the
    Other operating expenses up 50.2 million                                  measurement gains.
    Other operating expenses climbed 10.2 million to 12.4 million
    (previous year: 12.2 million).
                                                                              FINANCIAL POSITION AND NET ASSETS
    EBIT increases by 15%
    EBIT increased by 16.9 million (+15%) from 146.9 million to 153.8         Net assets and liquidity
    million. This was chiefly due to contributions to earnings from the       During the reporting period, the Deutsche EuroShop Group’s
    recently opened properties in Passau and Hameln and the full inclu-       total assets increased by 1125.1 million to 12,132.0 million. Non-
    sion for the first time of the property company in Kassel.                current assets rose by 173.8 million, due in particular to the first-
                                                                              time consolidation of City-Point Kassel. Receivables and other
    Net finance costs in line with expectations                               assets increased by 131.8 million, mainly attributable to the fact
    Net finance costs totalled 127.7 million, 14.9 million more than          that the dividend of 136.1 million was paid at the end of June
    the 122.8 million recorded the previous year. This was attribut-          into the dividend redemption account and is recognised under
    able firstly to the higher interest expense incurred following the        accruals and deferrals as at the reporting date. At 161.3 million,
    consolidation of Kassel, and secondly to the interest expense for         cash and cash equivalents were 119.6 million higher than on
    the Hameln and Passau centers. Interest income declined due               31 December 2008.
    to the sharp fall in capital market rates. Income from participat-
    ing interests came in the form of a dividend distribution by our          Equity ratio of 47.4%
    Polish property company (Galeria Dominikanska), which since the           The equity ratio including minority interests decreased from 48.7%
    second quarter of 2008 has paid them quarterly. Income attribut-          (31 December 2008) to 47.4% as of 30 June 2009.
    able to minority shareholders was also higher than in the first six
    months of 2008.                                                           Liabilities
                                                                              As at 30 June 2009, bank loans and overdrafts stood at 1986.0 mil-
    Measurement gains experience exceptional                                  lion, 186.2 million higher than at end-2008. This increase was due
    and currency effects                                                      partly to the first-time full consolidation of City-Point Kassel and
    Measurement gains rose from 12.2 million to 110.8 million, thanks         partly to the recourse to short-term loans. Non-current deferred
    to a special effect related to the first-time full consolidation of our   tax liabilities rose by 16.5 million to 188.7 million. Other liabilities
    property company City-Point Kassel GmbH & Co. KG in the amount            and provisions increased by 10.4 million.
    of 18.1 million, against a provision for expenses of 11.8 million.
    Furthermore, the depreciation by the Polish zloty and Hungarian
    forint resulted in unrealised currency gains of 17.3 million. Meas-
    urement gains were reduced by the 12.1 million share of income
    attributable to minority shareholders.
4   DEUTSCHE EUROSHOP AG             INTERIM REPORT FOR FIRST HALF OF 2009




                                                                                 Annual General Meeting
    THE SHOPPING CENTER SHARE                                                    The Annual General Meeting of Deutsche EuroShop AG was held
                                                                                 on 30 June 2009. The venue, as in the previous year, was the Alte
    During the first six months of 2009, the Deutsche EuroShop stock             Dressurhalle at Hagenbeck Zoo. Just under 300 shareholders
    performed well at first, rising on 6 January from 124.30 (2008 year-         attended, representing 56.5% of the share capital at the time of
    end closing price) to 126.00, its high for the period under review.          the voting. Items on the agenda included elections to the Super-
    In a generally weak market environment, particularly for real estate         visory Board. All agenda items were approved by a large majority.
    companies, the share price then fell to 118.66 (6 March 2009) before         A dividend of 11.05 per share was paid out on 1 July 2009.
    rallying somewhat thereafter. The price on 30 June 2009 was 121.95,
    which means that over the first six months of 2009 it fell 9.7%. The         Broad coverage
    MDAX rose by 2.7% over this period. On 30 June 2009, Deutsche                Currently, 25 analysts from renowned German and international
    EuroShop had market capitalisation of 1755 million.                          investment companies provide regular coverage of the Deutsche
                                                                                 EuroShop stock and publish reports containing their assessment of
    Deutsche EuroShop vs. MDAX and EPRA                                          its prospects. Other banks have also indicated that they would like
    Comparison, January to July 2009                                             to initiate coverage of Deutsche EuroShop in the near future.


    TREND OF SHARE                                     indexed, base of 100, %


    120
                                                                                 REPORT ON POST-BALANCE-
                                                                                 SHEET-DATE EVENTS
    110

                                                                                 After the end of first half of 2009, Deutsche EuroShop increased
    100                                                                          its share capital from 134,374,998.00 to 137,812,496.00 through
                                                                                 partial use of its authorised capital, excluding shareholders’ sub-
                                                                                 scription rights. The 3,437,498 new shares were subscribed by insti-
     90
                                                                                 tutional investors via an accelerated bookbuilding process. The
                                                                                 new shares were admitted for trading without a sales prospectus
     80                                                                          to the regulated market of the Frankfurt Stock Exchange, with a
                                                                                 simultaneous listing in the Prime Standard segment of the Frank-
                                                                                 furt Stock Exchange, which has enhanced disclosure obligations.
     70
            JAN        FEB    MAR       APR      MAY      JUN         JUL
                                                                                 The shares qualify for a dividend from 1 January 2009. The place-
                                                                                 ment price was 119.50 per share. The Company’s gross proceeds
          Deutsche EuroShop   EPRA        MDAX                                   from the capital increase were approximately 167 million.

    Roadshows and conferences
    Between April and June, we presented Deutsche EuroShop at
    conferences organised by Deutsche Bank in Frankfurt and Kem-                 RISK REPORT
    pen & Co. in Amsterdam. We also held numerous meetings with
    institutional investors and analysts at roadshows in Frankfurt, Lon-         There have been no significant changes since the beginning of the
    don, Zurich, Geneva, Paris, Copenhagen and Dublin.                           financial year with regard to the risks associated with future busi-
                                                                                 ness development. We do not believe the Company faces any risks
    Awards for investor relations work                                           capable of jeopardising its continued existence. The information
    The investor relations activities of Deutsche EuroShop were hon-             provided in the risk report of the consolidated financial statements
    oured through two further awards with industry-wide recognition.             as at 31 December 2008 is therefore still applicable.
    The “German Investor Relations Award 2009” in the MDAX seg-
    ment, bestowed on us in April by WirtschaftsWoche, the German
    Investor Relations Association (DIRK) and Thomson Reuters, was
    followed in June by 1st place in the “Capital Investor Relations
    Award 2009”, MDAX category, from Capital magazine and the
    Society of Investment Professionals in Germany (DVFA).
5   DEUTSCHE EUROSHOP AG          INTERIM REPORT FOR FIRST HALF OF 2009




    REPORT ON OPPORTUNITIES
    AND OUTLOOK

    ECONOMIC CONDITIONS

    The German government has slashed its growth forecast for the
    current year and also sees the economy stagnating in 2010. The
    financial crisis has now taken a firm hold and reached almost all
    sectors of the economy. It is extremely difficult to issue reliable
    predictions concerning future developments, but we believe our
    conservative business model and the fact that our rental income
    is secured for the long term mean that we are comparatively well-
    placed to cope with the situation.

    We still see no conspicuously negative trends with regard to turn-
    over at our shopping centers. Consumers’ behaviour remains very
    robust. However, in view of the lowered economic forecasts, we
    expect retail sales to decline in 2009.



    EXPECTED RESULTS OF OPERATIONS
    AND FINANCIAL POSITION
    Kassel and Hamm undergo restructuring
    Our shopping centers in Kassel and Hamm are being restructured
    until autumn 2009. At City-Point Kassel, the space previously
    occupied by Hertie will be divided up and let to several small and
    medium-sized retailers. The required investment amount, including
    imputed lost rental income and ancillary costs during the construc-
    tion period, will total approximately 15.1 million.

    At the Allee-Center Hamm, the tenancy agreement with a hyper-
    market operator was terminated early. After conversion (investment
    costs of 11.8 million), these areas will be occupied by a food market
    and a major clothing store.

    Center expansions in Dresden and the
    Main-Taunus-Zentrum
    Work has already begun on expanding the Altmarkt-Galerie in
    Dresden. The selling area in the shopping center is set to increase
    by approximately 18,000 m² (it currently has around 26,000 m²),
    with some 90 new shops.

    We also anticipate that we will be able to begin expanding the
    Main-Taunus-Zentrum near Frankfurt this year. The selling area in
    the center is set to increase by approximately 12,000 m², allowing
    some 60 new shops to open.

    Unchanged forecast for 2009
    The results of the first six months confirm our budgeted figures
    for the whole of 2009. We expect revenue to increase to 1125-128
    million. EBIT will be 1105-108 million this year, on our forecasts,
    while EBT excluding measurement gains/losses will be 150-52 mil-
    lion. We expect funds from operations (FFO) of between 11.38
    and 11.43 per share, taking into account the capital increase that
    was conducted.

    On this basis, we remain optimistic that we will once again be able
    to pay a dividend of 11.05 per share for financial year 2009.
6   DEUTSCHE EUROSHOP AG             INTERIM REPORT FOR FIRST HALF OF 2009




    IFRS CONSOLIDATED BALANCE SHEET
    AS OF 30 JUNE 2009

    ASSETS

    in 1 thousand                                                            30.06.2009   31.12.2008
    Assets
    Non-current assets
    Intangible assets                                                               28           32
    Property, plant and equipment                                                25,169       21,199
    Investment Properties                                                     1,967,915    1,897,767
    Non-current financial assets                                                 30,107       30,316
    Investments in equity-accounted associates                                    3,721        3,740
    Other non-current assets                                                       878          930
    Non-current assets                                                        2,027,818    1,953,984


    Current assets
    Trade receivables                                                             1,768        2,717
    Other current assets                                                         39,453        6,737
    Other financial investments                                                   1,600        1,740
    Cash and cash equivalents                                                    61,285       41,671
    Current assets                                                             104,106       52,865


    Total assets                                                              2,131,924    2,006,849



    EQUITY AND LIABILITIES

    in 1 thousand                                                            30.06.2009   31.12.2008
    Equity and liabilities
    Equity and reserves
    Issued capital                                                               34,375       34,375
    Capital reserves                                                            546,213      546,213
    Retained earnings                                                           307,055      279,862
    Total equity                                                               887,643      860,450



    Non-current liabilities
    Bank loans and overdrafts                                                   919,266      879,078
    Deferred tax liabilities                                                     88,732       82,313
    Right to redeem of limited partners                                         122,239      117,320
    Other non-current liabilities                                                11,891       14,941
    Non-current liabilities                                                   1,142,128    1,093,652



    Current liabilities
    Bank loans and overdrafts                                                    66,724       20,730
    Current trade payables                                                        2,519        3,039
    Liabilities to other investees and investors                                     0           35
    Tax provisions                                                                 492          662
    Other provisions                                                             26,585       18,221
    Other non-current liabilities                                                 5,833       10,060
    Current liabilities                                                        102,153       52,747


    Total equity and liabilities                                              2,131,924    2,006,849
7   DEUTSCHE EUROSHOP AG              INTERIM REPORT FOR FIRST HALF OF 2009




    IFRS CONSOLIDATED INCOME STATEMENT
    FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2009

    in 1 thousand                                                01.04. – 30.06.2009   01.04. – 30.06.2008   01.01. – 30.06.2009   01.01. – 30.06.2008

    Revenue                                                                   31,216               28,310                62,990                55,202

    Property operating costs                                                  -1,705               -1,217                -3,636                -3,206

    Property management costs                                                 -1,831               -1,850                -3,815                -3,455
    Net operating income (NOI)                                               27,680                25,243                55,539                48,541



    Other operating income                                                      435                   294                   695                   531

    Other operating expenses (corporate costs)                                -1,330               -1,345                -2,385                -2,187
    Earnings before interest and taxes (EBIT)                                26,785                24,192                53,849                46,885



    Income from investments                                                     557                 1,012                   884                 1,012

    Interest income                                                             219                   664                   379                 1,191

    Interest expense                                                        -12,266               -11,568               -24,981               -22,339

    Profit/loss attributable to limited partners                              -2,017               -1,348                -4,014                -2,695
    Net finance costs                                                       -13,507               -11,240               -27,732               -22,831


    Measurement gains                                                         -5,957                1,023                10,821                 2,244
    Profit before tax (EBT)                                                   7,321                13,975                36,938                26,298



    Income tax expense                                                        -1,230               -2,577                -6,480                -4,706
    Consolidated profit                                                       6,091                11,398                30,458                21,592

    Basic earnings per share (3 )                                               0.18                 0.33                  0.89                  0.63

    Diluted earnings per share (3 )                                             0.18                 0.33                  0.89                  0.63




    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

    in 1 thousand                                                01.04. – 30.06.2009   01.04. – 30.06.2008   01.01. – 30.06.2009   01.01. – 30.06.2008

    Consolidated profit                                                       6,091                11,398                30,458                21,592



    Change due to currency translation effects                                 6,639               -1,176                -6,146                -2,357

    Change in cash flow hedge                                                  4,496                4,703                 2,881                 1,903
    Total of earnings recognised directly in equity                          11,135                 3,527                -3,265                  -454
    Total profit                                                             17,226                14,925                27,193                21,138

    Profit attributable to group shareholdes                                  17,226               14,925                27,193                21,138
8   DEUTSCHE EUROSHOP AG              INTERIM REPORT FOR FIRST HALF OF 2009




    STATEMENT OF CHANGES IN EQUITY
    AS OF 30 JUNE 2009

                                                                                                           Other
    in 1 thousand                                           Share capital   Capital reserves   retained earnings     Legal reserve                   Total
    01.01.2008                                                     34,375           546,213             278,210              2,000                860,798
    Change in cash flow hedge                                                                              1,903                                     1,903
    Other changes                                                                                         -2,357                                    -2,357
    Total of earnings recognised directly in equity                34,375           546,213                -454                  2,000               -454
    Consolidated profit                                                                                  21,592                                    21,592
    Total profit                                                   34,375           546,213             299,348                  2,000            881,936
    Dividend payments                                                                                    -36,094                                   -36,094
    30.06.2008                                                     34,375           546,213             263,254              2,000                845,842


    01.01.2009                                                     34,375           546,213             277,862              2,000                860,450
    Change in cash flow hedge                                                                              2,881                                     2,881
    Other changes                                                                                         -6,146                                    -6,146
    Total of earnings recognised directly in equity                34,375           546,213               -3,265                 2,000              -3,265
    Consolidated profit                                                                                  30,458                                    30,458
    Total profit                                                                                        305,055                                   887,643
    30.06.2009                                                     34,375           546,213             305,055              2,000                887,643




    IFRS CONSOLIDATED CASH FLOW STATEMENT
    FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2009

    in 1 thousand                                                                                            01.01.-30.06.2009           01.01.-30.06.2008
    Profit after tax                                                                                                   30,458                      21,592
    Income from the application of IFRS 3                                                                               -8,075                          0
    Profit / loss attributable to limited partners                                                                       6,096                       3,955
    Depreciation of property, plant and equipment                                                                          12                           5
    Other non-cash income and expenses                                                                                  -4,828                      -4,376
    Deferred taxes                                                                                                       6,419                       4,551
    Operating cash flow                                                                                                30,082                      25,727


    Changes in receivables                                                                                             -31,455                       7,173
    Changes in other financial investments                                                                                140                       -2,947
    Changes in current provisions                                                                                        8,175                     -12,795
    Changes in liabilities                                                                                              -7,989                       2,971
    Cash flow from operating activities                                                                                -1,047                      20,129


    Payments to acquire property, plant and equipment                                                                  -22,170
    Inflows and outflows for investments in non-current financial assets                                                   18                      -32,499
    Cash flow from investing activities                                                                                -22,152                     -3,899


    Changes in interest-bearing financial liabilities                                                                  44,584                      16,629
    Payments to Group shareholders                                                                                          0                      -36,094
    Payments to minority shareholders                                                                                   -4,173                      -3,789
    Cash flow from financing activities                                                                                40,411                     -23,254


    Net change in cash and cash equivalents                                                                            17,212                     -39,523


    Cash and cash equivalents at beginning of period                                                                   41,671                     108,993


    Currency related changes                                                                                             -596                       -8,903
    Other changes                                                                                                        2,998                          -4


    Cash and cash equivalents at end of period                                                                         61,285                      60,563
9   DEUTSCHE EUROSHOP AG           INTERIM REPORT FOR FIRST HALF OF 2009




    DISCLOSURES                                                                FINANCIAL CALENDAR
    Basis of presentation                                                      13.08.          Interim report H1 2009
    These financial statements of the Deutsche EuroShop Group as               25.08.          Credit Suisse Real Estate Round Table, London
    at 30 June 2009 have been prepared in accordance with Interna-             26.08.          Roadshow London, WestLB
    tional Financial Reporting Standards (IFRS).                               27.08.          Roadshow Edinburgh, CA Cheuvreux
                                                                               01.09.          Roadshow Cologne, Dusseldorf, WestLB
    The management report and the abridged financial statements                02.09.          Roadshow Brussels, Petercam
    were not audited in accordance with section 317 of the Handels-            03.-04.09.      EPRA Annual Conference, Brussels
    gesetzbuch (HGB – German Commercial Code), nor were they                   16.09.          Sal. Oppenheim Real Estate Forum, Amsterdam
    reviewed by a person qualified to carry out audits. In the opinion of      17.09.          Supervisory Board meeting, Hamburg
    the Executive Board, the report contains all the necessary adjust-         23.09.          UniCredit German Investment Conference, Munich
    ments required to give a true and fair view of the assets, liabili-        30.09.-01.10.   Bank of America Merrill Lynch Global Real Estate
    ties, financial position and profit or loss for the first six months.                      Conference, New York
    The performance of the first six months up to 30 June 2009 is not          01.10.          Société Générale Pan European Real Estate
    necessarily an indication of future performance.                                           Conference, London
                                                                               05.-07.10.      Expo Real, Munich
    The accounting policies applied correspond to those used in the            20.10.          Real Estate Share Initiative, Frankfurt
    last consolidated financial statements as at the end of the financial      07.11.          Hamburg Exchange Convention
    year. A detailed description of the methods applied was published          12.11.          Interim report Q1-3 2009
    in the notes to the consolidated financial statements for 2008.            16.11.          Roadshow Paris, Berenberg
                                                                               16.11.          Roadshow London, M.M. Warburg
                                                                               17.11.          Roadshow Zurich, Berenberg
    OTHER INFORMATION                                                          17.11.          Roadshow Amsterdam, Rabobank
                                                                               19.11.          WestLB Deutschland Conference, Frankfurt
    Dividend                                                                   26.11.          Supervisory Board meeting, Hamburg
    No dividend was distributed during the first half of 2009.                 01.12.          Commerzbank Real Estate Conference, Frankfurt
                                                                               01.-03.12.      UBS Global Real Estate Conference, London
    Share options
    The variable components of the remuneration of the members of
    the Executive Board and Supervisory Board do not include any               Our financial calendar is updated continuously.
    share options or similar securities-based incentive schemes.               Please check our website for the latest events:
                                                                               http://www.deutsche-euroshop.com/ir
    Responsibility statement by the Executive Board
    To the best of our knowledge, and in accordance with the applicable
    reporting principles for interim financial reporting, the interim con-
    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
    of the Group, together with a description of the principal opportu-
    nities and risks associated with the expected development of the
    Group for the remaining months of the financial year.

    Hamburg, August 2009




      Claus-Matthias Böge                      Olaf G, Borkers




                                                          INVESTOR RELATIONS CONTACT

                                                          Patrick Kiss and Nicolas Lissner
                                                          Tel.: +49 (0)40 - 41 35 79 20 / -22
                                                          Fax: +49 (0)40 - 41 35 79 29
                                                          E-Mail: ir@deutsche-euroshop.com
                                                          Web: www.deutsche-euroshop.com/ir

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Deutsche EuroShop Interim Report H1 2009

  • 1. INTERIM REPORT FOR FIRST HALF OF 2009 LETTER FROM THE EXECUTIVE BOARD DEAR SHAREHOLDERS, in a new loan agreement alongside a loan for 150.0 million due to be DEAR READERS, extended in October 2009. This refinancing will reduce our annual interest expense by around 11 million and increase the average The first six months of 2009 went according to plan for Deutsche residual maturity of our loans to roughly eight years. By the end of EuroShop. With revenue at 163.0 million, we exceeded earnings 2012, we will have no long-term borrowings to renegotiate. in the first half of 2008 by 14%. Net operating income (NOI) also improved by 14% to 155.5 million, while EBIT climbed 15% to Shortly after completing this refinancing, we also further improved 153.8 million. the Company’s equity base by increasing the share capital to 137,812,496.00. The 3,437,498 new shares were subscribed by insti- These rises were partly the result of the contributions to operating tutional investors via an accelerated bookbuilding process. The income made by the newly opened shopping centers in Hameln gross proceeds for the Company from the capital increase totalled and Passau, in their first full first half-year. In addition, the increase approximately 167 million, which we will use to fund further growth in our share in City-Point in Kassel from 40% to 90% at the start of and to seize investment opportunities that may arise. 2009 allowed us to fully consolidate this center, with correspond- ing effects on the balance sheet and income statement. In the interim report on the first quarter, we expressed optimism that we would also be able to pay a dividend of 11.05 per share Funds from operations (FFO) improved by 9% from 10.70 to 10.76 for the current financial year. Now that the first six months have per share. Consolidated profit was boosted by positive exceptional passed, we are in a position to reaffirm this confident view. and currency effects on measurement gains, which rose 41% from 121.6 million to 130.5 million. Earnings per share correspondingly Hamburg, August 2009 increased from 10.63 to 10.89. After the end of the period under review, we refinanced two loans with a total volume of 1132.2 million for ten years at the start of July. A loan for 182.2 million that will not mature until 2013 was included Claus-Matthias Böge Olaf G. Borkers KEY GROUP DATA KEY SHARE DATA 01.01. – 30.06. 01.01. – 30.06. Sector / industry group Financial Services / Real Estate 3 million 2009 2008 +/– Share capital on 30.06.2009 134,374,998.00 Revenue 63.0 55.2 14% Number of shares on 30.06.2009 EBIT 53.8 46.9 15% (no-par value registered shares) 34,374,998 Net finance costs -27.7 -22.8 -21% Dividend 2009 11.05 EBT 36.9 26.3 40% Share price on 30.12.2008 124.30 Consolidated profit 30.5 21.6 41% Share price on 30.06.2009 121.95 FFO per share (1 ) 0.76 0.70 9% EPS (1 ) 0.89 0.63 41% Low / high in the period under review 118.66 / 126.00 Market capitalisation on 30.06.2009 1755 million 30.06.2009 31.12.2008 Prime Standard Frankfurt und Xetra Equity * 1,009.9 977.8 3% OTC trading Berlin-Bremen, Düsseldorf, Liabilities 1,122.0 1,029.1 9% Hamburg, Hannover, München und Stuttgart Total assets 2,131.9 2,006.8 6% Indices MDAX, EPRA, GPR 250, EPIX 30, Equity ratio (%) * 47.4 48.7 HASPAX LTV-ratio (%) 48.6 46.1 ISIN DE 000748 020 4 Gearing (%)* 111 105 Ticker symbol DEQ, Reuters: DEQGn,DE Cash and cash equivalents 61.3 41.7 47% * incl. minorities
  • 2. 2 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 Domestic consumption has decoupled somewhat from these events. BUSINESS AND ECONOMIC The GfK research group regularly reports that consumer spending CONDITIONS and confidence are increasing all the time, driven by hopes of immi- nent economy recovery. At the same time, researchers have warned of over-optimism. Should unemployment rise significantly in late GROUP STRUCTURE AND autumn, it is argued that this will hurt consumer sentiment. OPERATING ACTIVITIES To date, we have been unable to discern any trends in our segment Activities that might lead to falling rental income. The revenue of retailers in our Deutsche EuroShop is the only public company in Germany to shopping centers is very stable. Consumption continues to be sup- invest solely in shopping centers in prime locations. It currently has ported by low energy prices and practically non-existent inflation. investments in 16 shopping centers in Germany, Austria, Poland and Hungary. The Group generated the reported revenue from rental income on the space let in its shopping centers. Group’s legal structure RESULTS OF OPERATIONS, Due to its lean personnel structure and concentration on just one operating segment, the Deutsche EuroShop Group is centrally organ- FINANCIAL POSITION AND ised. The Group managing company is Deutsche EuroShop AG. It is responsible for corporate strategy, portfolio and risk manage- NET ASSETS ment, financing and communication. Increase in the shareholding in City-Point Kassel The Company’s registered office is in Hamburg. Since its estab- With effect from 2 January 2009, we increased our shareholding in lishment in 2000, Deutsche EuroShop AG has been an Aktien- City-Point Kassel GmbH & Co. KG from 40% to 90%. The purchase gesellschaft (public company) under German law. The individual price of the shares was 116.4 million and was paid in cash. shopping centers are managed as separate companies. Depending on the share of the nominal capital held, these are either fully con- The following assets and liabilities were thereby acquired at fair solidated (over 50% share) or proportionally consolidated (up to value: 50% share) as investment properties. The investment in Galeria Dominikanska in Wroclaw is recognised under non-current financial T1 assets (33.3% share). Current assets 1,263 The share capital totals 137,812,496 (following the capital increase Non-current assets 69,840 on 7 July 2009) and is composed of 37,812,496 no-par value regis- Current liabilities 176 tered shares. The notional value of each share is 11.00. Non-current liabilities 46,488 MACROECONOMIC AND Until 31 December 2008, the property company had been propor- SECTOR-SPECIFIC CONDITIONS tionally included in the consolidated financial statements. From 2009, its financial statements will be consolidated in full, which will After the German economy experienced a massive downturn in the have a corresponding impact on all the items in the consolidated first quarter of 2009, there are now increasing signs that the econ- financial statements. The higher revenue and cost items and the omy will stabilise and the recession come to an end in the second changes in assets and liabilities are essentially the result of the half of the year. However, it is difficult to predict when the global change in the scope of consolidation. The first-time consolidation economy will return to growth. The reorganisation and reform of resulted in a positive difference in accordance with IFRS 3 in the the international financial system continue to be the focal point of amount of 18.1 million, which flowed into the measurement gains the shake-out. The efforts of the monetary, fiscal and supervisory and increased net income. policymakers have been geared in this direction for almost two years now. Public funds have been used on a vast scale for economic packages and bailouts in the financial sector. The resulting levels of national debt in the western industrialised countries are worrying, and massive systemic risks continue to exist within the economic and financial markets.
  • 3. 3 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 RESULTS OF OPERATIONS EBT up 40% EBT rose from 126.3 million to 136.9 million. This corresponds to a 14% revenue increase year-on-year increase of 110.6 million or 40% and is mainly attribut- Revenue in the first half of 2009 totalled 163.0 million, represen- able to the effects already described under measurement gains. ting a 14% rise year-on-year (155.2 million). The full consolidation of the results of the Kassel center resulted in higher revenue con- FFO per share: 50.76 tributions than in the past. In addition, the two centers opened in FFO (funds from operations) increased by 10.06 from 10.70 to 10.76 Hameln and Passau in 2008 also contributed to revenue growth. per share (number of shares as at 30 June 2009). This represents Revenue from existing properties climbed 1.4% year-on-year. an increase of 9% and was primarily achieved through the newly opened properties and the “Kassel effect”. Higher operating and administrative costs for property as a result of new centers Consolidated profit: 530.5 million; Higher expenses were incurred for the operation of the shopping earnings per share: 50.89 centers in the period under review due to the opening of the centers Consolidated profit totalled 130.5 million, up by 18.9 million ver- in Hameln and Passau. The operating and administrative costs for sus the first six months of 2008 (121.6 million). This is equiva- property were 17.5 million in the reporting period, compared with lent to profit growth of 41%. Earnings per share consequently 16.7 million in the same period the previous year. rose from 10.63 to 10.89 (number of shares as at 30 June 2009). Of this, 10.63 resulted from operating profit and 10.26 from the Other operating expenses up 50.2 million measurement gains. Other operating expenses climbed 10.2 million to 12.4 million (previous year: 12.2 million). FINANCIAL POSITION AND NET ASSETS EBIT increases by 15% EBIT increased by 16.9 million (+15%) from 146.9 million to 153.8 Net assets and liquidity million. This was chiefly due to contributions to earnings from the During the reporting period, the Deutsche EuroShop Group’s recently opened properties in Passau and Hameln and the full inclu- total assets increased by 1125.1 million to 12,132.0 million. Non- sion for the first time of the property company in Kassel. current assets rose by 173.8 million, due in particular to the first- time consolidation of City-Point Kassel. Receivables and other Net finance costs in line with expectations assets increased by 131.8 million, mainly attributable to the fact Net finance costs totalled 127.7 million, 14.9 million more than that the dividend of 136.1 million was paid at the end of June the 122.8 million recorded the previous year. This was attribut- into the dividend redemption account and is recognised under able firstly to the higher interest expense incurred following the accruals and deferrals as at the reporting date. At 161.3 million, consolidation of Kassel, and secondly to the interest expense for cash and cash equivalents were 119.6 million higher than on the Hameln and Passau centers. Interest income declined due 31 December 2008. to the sharp fall in capital market rates. Income from participat- ing interests came in the form of a dividend distribution by our Equity ratio of 47.4% Polish property company (Galeria Dominikanska), which since the The equity ratio including minority interests decreased from 48.7% second quarter of 2008 has paid them quarterly. Income attribut- (31 December 2008) to 47.4% as of 30 June 2009. able to minority shareholders was also higher than in the first six months of 2008. Liabilities As at 30 June 2009, bank loans and overdrafts stood at 1986.0 mil- Measurement gains experience exceptional lion, 186.2 million higher than at end-2008. This increase was due and currency effects partly to the first-time full consolidation of City-Point Kassel and Measurement gains rose from 12.2 million to 110.8 million, thanks partly to the recourse to short-term loans. Non-current deferred to a special effect related to the first-time full consolidation of our tax liabilities rose by 16.5 million to 188.7 million. Other liabilities property company City-Point Kassel GmbH & Co. KG in the amount and provisions increased by 10.4 million. of 18.1 million, against a provision for expenses of 11.8 million. Furthermore, the depreciation by the Polish zloty and Hungarian forint resulted in unrealised currency gains of 17.3 million. Meas- urement gains were reduced by the 12.1 million share of income attributable to minority shareholders.
  • 4. 4 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 Annual General Meeting THE SHOPPING CENTER SHARE The Annual General Meeting of Deutsche EuroShop AG was held on 30 June 2009. The venue, as in the previous year, was the Alte During the first six months of 2009, the Deutsche EuroShop stock Dressurhalle at Hagenbeck Zoo. Just under 300 shareholders performed well at first, rising on 6 January from 124.30 (2008 year- attended, representing 56.5% of the share capital at the time of end closing price) to 126.00, its high for the period under review. the voting. Items on the agenda included elections to the Super- In a generally weak market environment, particularly for real estate visory Board. All agenda items were approved by a large majority. companies, the share price then fell to 118.66 (6 March 2009) before A dividend of 11.05 per share was paid out on 1 July 2009. rallying somewhat thereafter. The price on 30 June 2009 was 121.95, which means that over the first six months of 2009 it fell 9.7%. The Broad coverage MDAX rose by 2.7% over this period. On 30 June 2009, Deutsche Currently, 25 analysts from renowned German and international EuroShop had market capitalisation of 1755 million. investment companies provide regular coverage of the Deutsche EuroShop stock and publish reports containing their assessment of Deutsche EuroShop vs. MDAX and EPRA its prospects. Other banks have also indicated that they would like Comparison, January to July 2009 to initiate coverage of Deutsche EuroShop in the near future. TREND OF SHARE indexed, base of 100, % 120 REPORT ON POST-BALANCE- SHEET-DATE EVENTS 110 After the end of first half of 2009, Deutsche EuroShop increased 100 its share capital from 134,374,998.00 to 137,812,496.00 through partial use of its authorised capital, excluding shareholders’ sub- scription rights. The 3,437,498 new shares were subscribed by insti- 90 tutional investors via an accelerated bookbuilding process. The new shares were admitted for trading without a sales prospectus 80 to the regulated market of the Frankfurt Stock Exchange, with a simultaneous listing in the Prime Standard segment of the Frank- furt Stock Exchange, which has enhanced disclosure obligations. 70 JAN FEB MAR APR MAY JUN JUL The shares qualify for a dividend from 1 January 2009. The place- ment price was 119.50 per share. The Company’s gross proceeds Deutsche EuroShop EPRA MDAX from the capital increase were approximately 167 million. Roadshows and conferences Between April and June, we presented Deutsche EuroShop at conferences organised by Deutsche Bank in Frankfurt and Kem- RISK REPORT pen & Co. in Amsterdam. We also held numerous meetings with institutional investors and analysts at roadshows in Frankfurt, Lon- There have been no significant changes since the beginning of the don, Zurich, Geneva, Paris, Copenhagen and Dublin. financial year with regard to the risks associated with future busi- ness development. We do not believe the Company faces any risks Awards for investor relations work capable of jeopardising its continued existence. The information The investor relations activities of Deutsche EuroShop were hon- provided in the risk report of the consolidated financial statements oured through two further awards with industry-wide recognition. as at 31 December 2008 is therefore still applicable. The “German Investor Relations Award 2009” in the MDAX seg- ment, bestowed on us in April by WirtschaftsWoche, the German Investor Relations Association (DIRK) and Thomson Reuters, was followed in June by 1st place in the “Capital Investor Relations Award 2009”, MDAX category, from Capital magazine and the Society of Investment Professionals in Germany (DVFA).
  • 5. 5 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 REPORT ON OPPORTUNITIES AND OUTLOOK ECONOMIC CONDITIONS The German government has slashed its growth forecast for the current year and also sees the economy stagnating in 2010. The financial crisis has now taken a firm hold and reached almost all sectors of the economy. It is extremely difficult to issue reliable predictions concerning future developments, but we believe our conservative business model and the fact that our rental income is secured for the long term mean that we are comparatively well- placed to cope with the situation. We still see no conspicuously negative trends with regard to turn- over at our shopping centers. Consumers’ behaviour remains very robust. However, in view of the lowered economic forecasts, we expect retail sales to decline in 2009. EXPECTED RESULTS OF OPERATIONS AND FINANCIAL POSITION Kassel and Hamm undergo restructuring Our shopping centers in Kassel and Hamm are being restructured until autumn 2009. At City-Point Kassel, the space previously occupied by Hertie will be divided up and let to several small and medium-sized retailers. The required investment amount, including imputed lost rental income and ancillary costs during the construc- tion period, will total approximately 15.1 million. At the Allee-Center Hamm, the tenancy agreement with a hyper- market operator was terminated early. After conversion (investment costs of 11.8 million), these areas will be occupied by a food market and a major clothing store. Center expansions in Dresden and the Main-Taunus-Zentrum Work has already begun on expanding the Altmarkt-Galerie in Dresden. The selling area in the shopping center is set to increase by approximately 18,000 m² (it currently has around 26,000 m²), with some 90 new shops. We also anticipate that we will be able to begin expanding the Main-Taunus-Zentrum near Frankfurt this year. The selling area in the center is set to increase by approximately 12,000 m², allowing some 60 new shops to open. Unchanged forecast for 2009 The results of the first six months confirm our budgeted figures for the whole of 2009. We expect revenue to increase to 1125-128 million. EBIT will be 1105-108 million this year, on our forecasts, while EBT excluding measurement gains/losses will be 150-52 mil- lion. We expect funds from operations (FFO) of between 11.38 and 11.43 per share, taking into account the capital increase that was conducted. On this basis, we remain optimistic that we will once again be able to pay a dividend of 11.05 per share for financial year 2009.
  • 6. 6 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 IFRS CONSOLIDATED BALANCE SHEET AS OF 30 JUNE 2009 ASSETS in 1 thousand 30.06.2009 31.12.2008 Assets Non-current assets Intangible assets 28 32 Property, plant and equipment 25,169 21,199 Investment Properties 1,967,915 1,897,767 Non-current financial assets 30,107 30,316 Investments in equity-accounted associates 3,721 3,740 Other non-current assets 878 930 Non-current assets 2,027,818 1,953,984 Current assets Trade receivables 1,768 2,717 Other current assets 39,453 6,737 Other financial investments 1,600 1,740 Cash and cash equivalents 61,285 41,671 Current assets 104,106 52,865 Total assets 2,131,924 2,006,849 EQUITY AND LIABILITIES in 1 thousand 30.06.2009 31.12.2008 Equity and liabilities Equity and reserves Issued capital 34,375 34,375 Capital reserves 546,213 546,213 Retained earnings 307,055 279,862 Total equity 887,643 860,450 Non-current liabilities Bank loans and overdrafts 919,266 879,078 Deferred tax liabilities 88,732 82,313 Right to redeem of limited partners 122,239 117,320 Other non-current liabilities 11,891 14,941 Non-current liabilities 1,142,128 1,093,652 Current liabilities Bank loans and overdrafts 66,724 20,730 Current trade payables 2,519 3,039 Liabilities to other investees and investors 0 35 Tax provisions 492 662 Other provisions 26,585 18,221 Other non-current liabilities 5,833 10,060 Current liabilities 102,153 52,747 Total equity and liabilities 2,131,924 2,006,849
  • 7. 7 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 IFRS CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2009 in 1 thousand 01.04. – 30.06.2009 01.04. – 30.06.2008 01.01. – 30.06.2009 01.01. – 30.06.2008 Revenue 31,216 28,310 62,990 55,202 Property operating costs -1,705 -1,217 -3,636 -3,206 Property management costs -1,831 -1,850 -3,815 -3,455 Net operating income (NOI) 27,680 25,243 55,539 48,541 Other operating income 435 294 695 531 Other operating expenses (corporate costs) -1,330 -1,345 -2,385 -2,187 Earnings before interest and taxes (EBIT) 26,785 24,192 53,849 46,885 Income from investments 557 1,012 884 1,012 Interest income 219 664 379 1,191 Interest expense -12,266 -11,568 -24,981 -22,339 Profit/loss attributable to limited partners -2,017 -1,348 -4,014 -2,695 Net finance costs -13,507 -11,240 -27,732 -22,831 Measurement gains -5,957 1,023 10,821 2,244 Profit before tax (EBT) 7,321 13,975 36,938 26,298 Income tax expense -1,230 -2,577 -6,480 -4,706 Consolidated profit 6,091 11,398 30,458 21,592 Basic earnings per share (3 ) 0.18 0.33 0.89 0.63 Diluted earnings per share (3 ) 0.18 0.33 0.89 0.63 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in 1 thousand 01.04. – 30.06.2009 01.04. – 30.06.2008 01.01. – 30.06.2009 01.01. – 30.06.2008 Consolidated profit 6,091 11,398 30,458 21,592 Change due to currency translation effects 6,639 -1,176 -6,146 -2,357 Change in cash flow hedge 4,496 4,703 2,881 1,903 Total of earnings recognised directly in equity 11,135 3,527 -3,265 -454 Total profit 17,226 14,925 27,193 21,138 Profit attributable to group shareholdes 17,226 14,925 27,193 21,138
  • 8. 8 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 STATEMENT OF CHANGES IN EQUITY AS OF 30 JUNE 2009 Other in 1 thousand Share capital Capital reserves retained earnings Legal reserve Total 01.01.2008 34,375 546,213 278,210 2,000 860,798 Change in cash flow hedge 1,903 1,903 Other changes -2,357 -2,357 Total of earnings recognised directly in equity 34,375 546,213 -454 2,000 -454 Consolidated profit 21,592 21,592 Total profit 34,375 546,213 299,348 2,000 881,936 Dividend payments -36,094 -36,094 30.06.2008 34,375 546,213 263,254 2,000 845,842 01.01.2009 34,375 546,213 277,862 2,000 860,450 Change in cash flow hedge 2,881 2,881 Other changes -6,146 -6,146 Total of earnings recognised directly in equity 34,375 546,213 -3,265 2,000 -3,265 Consolidated profit 30,458 30,458 Total profit 305,055 887,643 30.06.2009 34,375 546,213 305,055 2,000 887,643 IFRS CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2009 in 1 thousand 01.01.-30.06.2009 01.01.-30.06.2008 Profit after tax 30,458 21,592 Income from the application of IFRS 3 -8,075 0 Profit / loss attributable to limited partners 6,096 3,955 Depreciation of property, plant and equipment 12 5 Other non-cash income and expenses -4,828 -4,376 Deferred taxes 6,419 4,551 Operating cash flow 30,082 25,727 Changes in receivables -31,455 7,173 Changes in other financial investments 140 -2,947 Changes in current provisions 8,175 -12,795 Changes in liabilities -7,989 2,971 Cash flow from operating activities -1,047 20,129 Payments to acquire property, plant and equipment -22,170 Inflows and outflows for investments in non-current financial assets 18 -32,499 Cash flow from investing activities -22,152 -3,899 Changes in interest-bearing financial liabilities 44,584 16,629 Payments to Group shareholders 0 -36,094 Payments to minority shareholders -4,173 -3,789 Cash flow from financing activities 40,411 -23,254 Net change in cash and cash equivalents 17,212 -39,523 Cash and cash equivalents at beginning of period 41,671 108,993 Currency related changes -596 -8,903 Other changes 2,998 -4 Cash and cash equivalents at end of period 61,285 60,563
  • 9. 9 DEUTSCHE EUROSHOP AG INTERIM REPORT FOR FIRST HALF OF 2009 DISCLOSURES FINANCIAL CALENDAR Basis of presentation 13.08. Interim report H1 2009 These financial statements of the Deutsche EuroShop Group as 25.08. Credit Suisse Real Estate Round Table, London at 30 June 2009 have been prepared in accordance with Interna- 26.08. Roadshow London, WestLB tional Financial Reporting Standards (IFRS). 27.08. Roadshow Edinburgh, CA Cheuvreux 01.09. Roadshow Cologne, Dusseldorf, WestLB The management report and the abridged financial statements 02.09. Roadshow Brussels, Petercam were not audited in accordance with section 317 of the Handels- 03.-04.09. EPRA Annual Conference, Brussels gesetzbuch (HGB – German Commercial Code), nor were they 16.09. Sal. Oppenheim Real Estate Forum, Amsterdam reviewed by a person qualified to carry out audits. In the opinion of 17.09. Supervisory Board meeting, Hamburg the Executive Board, the report contains all the necessary adjust- 23.09. UniCredit German Investment Conference, Munich ments required to give a true and fair view of the assets, liabili- 30.09.-01.10. Bank of America Merrill Lynch Global Real Estate ties, financial position and profit or loss for the first six months. Conference, New York The performance of the first six months up to 30 June 2009 is not 01.10. Société Générale Pan European Real Estate necessarily an indication of future performance. Conference, London 05.-07.10. Expo Real, Munich The accounting policies applied correspond to those used in the 20.10. Real Estate Share Initiative, Frankfurt last consolidated financial statements as at the end of the financial 07.11. Hamburg Exchange Convention year. A detailed description of the methods applied was published 12.11. Interim report Q1-3 2009 in the notes to the consolidated financial statements for 2008. 16.11. Roadshow Paris, Berenberg 16.11. Roadshow London, M.M. Warburg 17.11. Roadshow Zurich, Berenberg OTHER INFORMATION 17.11. Roadshow Amsterdam, Rabobank 19.11. WestLB Deutschland Conference, Frankfurt Dividend 26.11. Supervisory Board meeting, Hamburg No dividend was distributed during the first half of 2009. 01.12. Commerzbank Real Estate Conference, Frankfurt 01.-03.12. UBS Global Real Estate Conference, London Share options The variable components of the remuneration of the members of the Executive Board and Supervisory Board do not include any Our financial calendar is updated continuously. share options or similar securities-based incentive schemes. Please check our website for the latest events: http://www.deutsche-euroshop.com/ir Responsibility statement by the Executive Board To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim con- 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 of the Group, together with a description of the principal opportu- nities and risks associated with the expected development of the Group for the remaining months of the financial year. Hamburg, August 2009 Claus-Matthias Böge Olaf G, Borkers INVESTOR RELATIONS CONTACT Patrick Kiss and Nicolas Lissner Tel.: +49 (0)40 - 41 35 79 20 / -22 Fax: +49 (0)40 - 41 35 79 29 E-Mail: ir@deutsche-euroshop.com Web: www.deutsche-euroshop.com/ir