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COMPANY
PRESENTATION
OCTOBER 2019
COMPANY
Shopping centers are attractive
investments because of
 Continuously positive
development of cash flows
 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
Deutsche EuroShop is
Germany´s only public
company that invests
solely in shopping centers
Equity Story
COMPANY PRESENTATION | OCTOBER 2019
1
COMPANY
At a Glance
COMPANY PRESENTATION | OCTOBER 2019
1 100%-view
² as % of market rent
2018 portfolio valuation:
approx. 5.01% net initial yield
(after transaction costs)
Professional center management
by ECE, the European market
leader in this industry
21 shopping centers on high
street and in established
locations – 17 in Germany and
one each in Austria, Czech
Republic, Hungary and Poland
Lettable space1 approx. 1,087,000 sqm
Retail shops1 approx. 2,700
Market value1 approx. €5.1 billion (DES-share €4.1 bn.)
Rents per year1 €300 million (DES-share €240 mn.)
Occupancy rate1, 2
99%
avg. GLA per DES-center:
inner city 40,400 sqm
est. locations 99,900 sqm
2
COMPANY
695
684
787
898
974
978
1,044
1,442
1,473
1,606
1,642
1,751
2,061
2,241
2,575
2,571
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Targets
COMPANY PRESENTATION | OCTOBER 2019
3
Deutsche EuroShop prefers a stable increase of cash flow and portfolio value over the shortterm success.
SHAREHOLDER EQUITY
€ million
Long term NAV
enhancement
Buy & hold strategy:
portfolio growth
• by acquisition of new
shopping centers
• by increasing existing
amounts of holdings
• by expansion of
portfolio centers
Investment focus:
min. 75% Germany
max. 25% Europe
Stable and attractive
dividends
SHOPPING CENTERS
Germany
COMPANY PRESENTATION | OCTOBER 2019
SAARPARK-
CENTER
CITY-
GALERIE
CITY-
POINT
RATHAUS
CENTER
ALLEE-
CENTER
PHOENIX-
CENTER
HEROLD-
CENTER
BILLSTEDT-
CENTER
ALLEE-
CENTER
STADT-
GALERIE
A10
CENTER
STADT-
GALERIE
Norderstedt
Wildau/Berlin
Magdeburg
Dessau
Dresden
Neunkirchen
Passau
Hamm
Hamburg
Wolfsburg Hameln
Kassel
Wetzlar
CITY-
ARKADEN
Wuppertal
ALTMARKT-
GALERIE
FORUM
MAIN-
TAUNUS-
ZENTRUM
Sulzbach/Frankfurt
Viernheim/Mannheim
RHEIN-
NECKAR-
ZENTRUM
4
SHOPPING CENTERS
Europe
COMPANY PRESENTATION | OCTOBER 2019
SHOPPING CENTERS
OLYMPIA
GALERIA
BAŁTYCKA
5
>170 million visitors per year
= the basis for our retailer’s success
Brno
Czech Republic
Gdansk
Poland
Pécs
Hungary
ÁRKÁD
CITY
ARKADEN
Klagenfurt
Austria
SHOPPING CENTERS
Trophy Asset: Main-Taunus-Zentrum
“One of the top shopping centers in Germany”
COMPANY PRESENTATION | OCTOBER 2019
SHOPPING CENTERS
6
SHOPPING CENTERS
Trophy Asset: Altmarkt-Galerie Dresden
“The unquestionable shopping heart amid the historical and vibrant city”
COMPANY PRESENTATION | OCTOBER 2019
SHOPPING CENTERS
7
SHOPPING CENTERS
Success Factors of a Modern Shopping Center
COMPANY PRESENTATION | OCTOBER 2019
LOCATION
More than 170 million
customers per year
CONVENIENCE
At Your Service
program started
AMBIENCE
Mall Beautification
program started
DIGITALIZATION
LOGISTICS
Click & Collect, Digital
Mall Center Apps,
Future Lab
TENANT MIX
Food Courts and
popular tenants
ASSET MANAGEMENT
ECE, a leading center
manager in Europe
8
SHOPPING CENTERS
COMPANY PRESENTATION | OCTOBER 2019
9
Pro-active improvements: Atmosphere
SHOPPING CENTERS
COMPANY PRESENTATION | OCTOBER 2019
10
Pro-active improvements: Convenience
FINANCIALS
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018 2019*
Free FFO
Loan Redemption
Dividend
Payout ratio
Investments: FFO provides substantial Capex Capacity
COMPANY PRESENTATION | OCTOBER 2019
* Forecast, dividend per share: proposal
2.23
Payout
ratio
in %
FFO per
share
in €
2.29
2.41
2.54
2.43
 Total capex of €25-30 million per year on avg.
€20 million per year on avg.
(decreasing over time)
Expected until 2023:
€0.05 increase per year
(guidance until dividend for 2020)
2.40-
2.44
Capex Programs
At-Your-Service & Mall Beautification
11
SHOPPING CENTERS
Our Tenants1
COMPANY PRESENTATION | OCTOBER 2019
1 Selection of our well known tenants
12
SHOPPING CENTERS
COMPANY PRESENTATION | OCTOBER 2019
13
Tenant Structure: Top 10 Tenants1
1 in % of total retail rents as at 31 Dec. 2018
2018 2017
H&M 3.5% 3.5%
Ceconomy 2.7% 2.7%
Deichmann 2.5% 2.5%
New Yorker 2.4% 2.3%
Peek & Cloppenburg 2.3% 2.3%
C&A 2.0% 2.0%
Rewe 1.8% 1.6%
Douglas 1.8% 1.8%
Metro 1.8% 1.7%
DM 1.4% 1.4%
Total 22.2% 21.8% 78%
22%
TOP 10 Tenants
LOW LEVEL OF DEPENDENCE ON THE TOP 10 TENANTS
SHOPPING CENTERS
Maturity Distribution of Rental Contracts1
COMPANY PRESENTATION | OCTOBER 2019
14
Long-term contracts base rental income
Weighted maturity 5.1 years
1 as % of rental income as at 31 Dec. 2018
2024 et sqq:
48%
2023:
10%
2022:
11%
2021:
20%
2020:
5%
2019:
6%
SHOPPING CENTERS
Fashion
49.9%
Non-food/
electronics
18.8%
Department stores
& hypermarkets
12.3%
Food & supermarkets
6.8%
Health & beauty
6.0%
Catering
4.4%
Services
1.8%
Sector Mix1
COMPANY PRESENTATION | OCTOBER 2019
Balanced sector diversification
1 as % of rental space as at 31 Dec. 2018
15
SHOPPING CENTERS
Retail turnover H1 20191
COMPANY PRESENTATION | OCTOBER 2019
16
 Retail turnover development on a like-for-like basis: -0.2% +1.0% +0.1%
1 German centers on a like-for-like basis (estimated turnover 2019: €2.0 billion)
2 The sum may not equal the totals due to rounding
RETAIL SECTOR
% change
in 2019
rent-to-sales
ratio in %
% of
sales
% of
space
DEPARTMENT STORES & HYPERMARKETS -0.7 6.4 7.7 14.9
FOOD -2.2 7.6 8.9 6.6
FASHION TEXTILES -0.1 12.9 29.3 39.1
SHOES & LEATHER GOODS +2.3 15.1 4.9 5.9
SPORTS +1.8 10.1 5.2 6.0
HEALTH & BEAUTY +2.1 7.2 12.3 5.8
GENERAL RETAIL -1.4 12.9 8.2 9.1
ELECTRONICS -0.6 3.8 14.6 7.5
SERVICES -4.5 4.9 4.8 1.6
FOOD CATERING +1.6 12.3 4.1 3.4
TOTAL -0.2 9.4 100² 100²
 Absolute retail turnover development: -0.4% +1.8% +0.0%
Germany Abroad Total
SHOPPING CENTERS
Trends in the Retail (Real Estate) Sector: Chances & Challenges
COMPANY PRESENTATION | OCTOBER 2019
17
Quality shopping centers transform from pure market places to platforms with multiple functions:
Shopping – Meeting Places – Social Media Hubs – Entertainment – Show Rooming – Logistics…
TREND CONSEQUENCE
General trend of economic growth basis for consumption growth for the retail industry as a whole
E-Commerce challenge disruption creates innovative ideas & adjustment momentum
Multi channel world quickly evolving online goes offline & offline goes online
Changing customer behavior driver for merger of on- and offline shopping channels
Digitalization as important key driver innovations in service, information, distribution and analytics
Physical customers interaction vital branding, customer retention, community & loyalty
Challenges for growing online deliveries quick, efficient and sustainable deliveries via shop logistics
Customer expectations increasing differentiation through services and experience
Strong asset management essential large & well-managed center portfolio´s with competitive edge
SHOPPING CENTERS
• Digital Mall
• center website
• center app
• social media
• „Easy to Park“ card
• QR code car finder
• 3D wayfinding systems
• indoor navigation
• InfoGate
• gift-wrapping and
packaging services
• personal shopper
• guest card
• mobile device
charging stations
• lounge areas
• selfie photo boxes
• free Wi-Fi
• same day delivery service
• prepaid parking cards
Customer Expectations Increasing: Services & Information
COMPANY PRESENTATION | OCTOBER 2019
18
Source: ECE
Pro-active improvements to preserve our centers as highly attractive destinations
FINANCIALS
Key Figures H1 2019
€ million 01.01. – 30.06.2019 01.01. – 30.06.2018 CHANGE
Revenue 111.9 111.6 0.3%
Net operating income (NOI) 100.4 100.5 -0.1%
Earnings before interest and tax (EBIT) 98.2 98.0 0.2%
Financial gains / losses -16.3 -19.2 14.7%
Valuation -8.4 -9.6 12.9%
Earnings before tax (EBT, excl. valuation) 1 81.9 78.9 3.8%
Consolidated profit [earnings per share in €] 66.2 [1.07] 55.3 [0.89] 19.7% [20.2%]
FFO [per share in €] 75.0 [1.21] 75.5 [1.22] -0.7% [-0.8%]
EPRA Earnings [per share in €] 84.3 [1.37] 73.6 [1.19] 14.5% [15.1%]
€ million 30.06.2019 31.12.2018 CHANGE
Total equity2 2,545.6 2,573.4 -1.1%
Liabilities 2,046.7 2,036.8 0.5%
Total assets 4,592.3 4,610.2 -0.4%
Equity ratio2 55.4% 55.8%
Loan to value ratio - consolidated3
- „look-through“4
32.3%
34.5%
31.8%
34.0%
Cash and cash equivalents 88.0 116.4 -24.4%
COMPANY PRESENTATION | OCTOBER 2019
19
1 including the share attributable to equity-accounted
joint ventures and associates
2 including third-party interest in equity
3 Ratio of net financial liabilities (financial liabilities less cash and cash
equivalents) to joint ventures and associates non current assets (investment
properties and investments accounted for using the equity method)
4 Ratio of net financial liabilities to long-term assets
calculated on the basis of the groups share
FINANCIALS
Valuation1 – Investment Properties 2018
COMPANY PRESENTATION | OCTOBER 2019
1 External appraisers: since 2015: JLL
2 2014 – 2018, Compound Annual Growth Rate (CAGR)
5.80 5.89 5.92 5.98 5.97
5.87
5.46
5.24 5.23 5.32
5.52
5.61 5.64
5.70 5.69
5.53
5.13
4.94 4.93
5.01
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Net operating yield in % Net initial yield in %
in € thousand Basis change of -25bps change of +25bps
Rent increase rates 1.33% -131,500 +159,900
Discount rate 5.90% +79,000 -75,200
Capitalization rate 5.07% +136,100 -122,100
Cost ratio 10.20% +9,800 -10,800
SENSITIVITY ANALYSIS
20
33.17
39.58
43.24 43.19 43.17
2014 2015 2016 2017 2018
NAV PER SHARE (EPRA)
€
+6.8%2
FINANCIALS
Loan Structure1,2
1 as of 30 June 2019
2 excl. non-consolidated loans
 19 German and 4 foreign bank partners
 Weighted maturity of fixed interest periods 5.7 years1
INTEREST LOCKIN DURATION
PRINCIPLE AMOUNTS
(€ MILLION)
SHARE OF
TOTAL LOAN
AVG.
INTEREST RATE
Up to 1 year 12.0 0.8% 3.46%
1 to 5 years 3.3 680.3 45.1% 3.33%
5 to 10 years 8.1 581.5 38.5% 2.40%
Over 10 years 11.0 235.6 15.6% 1.92%
Total1 5.7 1,509.4 100% 2.50%
PAGE XY
3.69 3.67
2.89
2.72
2.50
0
2
4
6
8
2.00
2.50
3.00
3.50
4.00
2015 2016 2017 2018 2019
avg. interest rate weighted maturity
yrs%
COMPANY PRESENTATION | OCTOBER 2019
21
1
FINANCIALS
IN € MILLION
END OF FIXED INTEREST
PERIODS RESPECTIVELY
EXPIRING LOANS AVG. INTEREST RATE DES‘ SHARE
2019 0
2020 35.0 4.00% 50%
2021 63.3 4.59% 50%
2022 12.1 4.90% 50%
2023-2025 0
Maturities until 20241,2
COMPANY PRESENTATION | OCTOBER 2019
22
1 as of 30 June 2019
2 excl. at-equity consolidated loans
IN € MILLION
END OF FIXED INTEREST
PERIODS RESPECTIVELY
EXPIRING LOANS AVG. INTEREST RATE
REGULAR
REDEMPTION
PAYMENTS TOTAL MATURITIES
2019 123.1 4.73% 12.0 135.1
2020 134.1 4.52% 16.4 150.5
2021 198.3 4.48% 14.3 212.6
2022 217.8 3.26% 15.5 233.3
2023 209.0 2.99% 8.8 217.8
2024 0 9.2 9.2
882.3
At-equity consolidated loans1
Phoenix-Center, Hamburg
€46.9m, 1.09%, 9y (06/2020)
€12.1m, 1.09%, 9y (06/2020)
Already fixed:
€132.2m, 2.21%, 10y (08/2019)
€139.9m, 1.68%, 10y (01/2020)
Lower refinancing cost
= positive FFO and
EPRA earnings impact
FINANCIALS
COMPANY PRESENTATION | OCTOBER 2019
23
REVENUE
in € million
EBT (excl. valuation)
in € million
FFO
in € million
EBIT
in € million
NUMBER OF SHARES
in millions
FFO PER SHARE
in €
129.9
148.1 150.4
148-
151
150-
153
2016 2017 2018 2019 2020
53.95
58.25
61.78 61.78 61.78
2016 2017 2018 2019 2020
2.41
2.54
2.43
2.40-
2.44
2.43-
2.47
2016 2017 2018 2019 2020
134.5
153.3
160.9
159-
162
161-
164
2016 2017 2018 2019 2020
205.1
218.5
225.0
222-
226
222-
226
2016 2017 2018 2019 2020
178.6
192.4
199.1 194-
198
194-
198
2016 2017 2018 2019 2020
+2.2%1 +4.8%1
+3.9%1
+2.4%1 +3.4%1 +0.4%1
Conversion of
the conv. bond
Forecast
1 Compound Annual Growth Rate (CAGR) 2016 – 2020
SHARE
1.05
1.10 1.10
1.20
1.25
1.30
1.35
1.40
1.45
1.507
1.558
1.608
25.88
43.17
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Dividend & Performance
COMPANY PRESENTATION | OCTOBER 2019
1 respectively paid for the previous FY
2 as of 31 Dec. 2018
3 2019: as of 30 September 2019
4 EPRA/NAREIT Europe
5 German government bonds index
6 open ended real estate funds
7 paid on 17 June 2019
8 proposal
9 2010 - 2021, Compound Annual Growth Rate (CAGR) of the dividend
Share price3
DES DAX EPRA4 REX5 OEF6
1 year (2018) -21.8% -18.3% -8.3% +1.5% +3.2%
3 years -29.4% = -11.0% p.a. -0.6% p.a. -0.4% p.a. +0.9% p.a. +4.2% p.a.
5 years -4.2% = -0.9% p.a. +2.0% p.a. +8.4% p.a. +2.1% p.a. +3.8% p.a.
Since IPO (2001) +172.2% = +5.7% p.a. +2.8% p.a. +7.3% p.a. +4.1% p.a. +3.4% p.a.
NAV per shareTREND OF SHARE
Dividend1
PERFORMANCE2
24
+3.9%9
SHARE
Shareholder Structure1
COMPANY PRESENTATION | OCTOBER 2019
1 Status: 13 September 2019
Institutional
Investors
46.2%
Private
Investors
23.2%
Alexander Otto
19.5%
BlackRock
2.8%
US
12%
Germany
67%
UK
7%
FR
2%
Other
6%
CH
1%
NO
3%
Johannes Schorr
3.3%
State Street
5.0%
 24,550 shareholders
 Free float 80.5%
25
NL
2%
SHARE
Analysts‘ Consensus1
COMPANY PRESENTATION | OCTOBER 2019
1 aggregated by DES, median values, status: 2 April 2019, 18 analysts
SELL UNDERPERFORM NEUTRAL
 Berenberg Bank
 Commerzbank
 Deutsche Bank
 Green Street Advisors
 HSBC
 J.P. Morgan Cazenove
 NORD/LB
 Pareto
OUTPERFORM
0%
20%
40%
60%
80%
100%
Q2 04 Q3 05 Q4 06 Q1 08 Q2 09 Q3 10 Q4 11 Q1 13 Q2 14 Q3 15 Q4 16 Q1 18 Q2 19
negative neutral positive
BUY
 Kepler Cheuvreux
 Metzler
 M.M. Warburg
 Societe Generale
 Baader Bank
 Bankhaus Lampe
 DZ Bank
 Independent
Research
median/in € 2019 2020
Revenue (€ million) 224.8 225.5
EBIT (€ million) 196.4 196.3
FFO per share 2.42 2.43
NAV per share 42.89 42.61
Dividend 1.55 1.60
Price target (mean) 31.91
26
 Kempen
SHARE
10 Reasons to Invest
COMPANY PRESENTATION | OCTOBER 2019
01 02 03 04 05
06 07 08 09 10
The only public
company in Germany
to invest solely in
shopping centers
Prime
locations
Proven,
conservative
strategy
Stable cash flow
with long term
visibility
Shareholder-
friendly
dividend policy
Experienced
management
team
Excellent
track record
Centers almost
100% let
Inflation-
protected rental
agreements
Solidity combined
with growth
potential
27
APPENDIX
Key Data of the Share
COMPANY PRESENTATION | OCTOBER 2019
Listed since 02.01.2001
Nominal capital €61,783,594.00
Outstanding shares 61,783,594
Class of shares Registered shares
Dividend 2018(paid on 17 June 2019) €1.50
52W High €28.72
52W Low €22.10
Share price (30 September 2019) €25.88
Market capitalisation €1.59 billion
Avg. turnover per day last 12 months (XETRA) 155,440 shares
Indices
SDAX, EPRA, GPR, MSCI Small Cap,
F.A.Z.-Index, GPTMS150 Index
Official market
Prime Standard
Frankfurt and XETRA
OTC market
Berlin, Dusseldorf, Hamburg,
Hanover, Munich and Stuttgart
ISIN DE 000 748 020 4
Ticker DEQ, Reuters: DEQGn.DE
Market maker Oddo Seydler
28
APPENDIX
-1
0
1
2
3
4
5
6
7
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Norderstedt
6.1%
Passau
5.5%
A10
6.5%
Billstedt
6.0% Magdeburg
5.9%
Dresden
5.4%
German Prime Shopping Center Yields
COMPANY PRESENTATION | OCTOBER 2019
29
Source: JLL, EUR Midswaps 7 years
%
German shopping
center prime yields
Euro Swap
Rate
COMPRESSION DECOMPRESSION POLARISATION DECOMPRESSION ?
Neunkirchen
5.0%
Brno
5.0%
COMPRESSION
SHOPPING CENTERS
Customers Love All Ways of Shopping: “On- and Offline”
COMPANY PRESENTATION | OCTOBER 2019
30
An example for a modern customer journey
Impulse Research Consultation Transaction Payment Delivery Return After sales
Customer
loyalty
Preparation of Purchase Transaction Service
 The cross-channel customer combines stationary and online channels
 The one-channel customer uses only one channel
 Retailers have to adjust to be successful
Source: ECE
Source: EY
APPENDIX
Online vs. Stationary Retail?
COMPANY PRESENTATION | OCTOBER 2019
TURNOVER DISTRIBUTION OF A FASHION RETAILER
Stationary retail transforms from “Point of Purchase” to “Touch Point” (product experience)
New store concepts (flagship store, show room, multi-channel store, pick-up store),
click & collect, augmented reality, online goes offline, mobile services
“Location, location, location” newly interpreted: “Convenience, attractivity & likeability“
Source: GfK
Pure online
purchases
Order in shop,
dispatch by post
Order online, pickup
in shop (click & collect)
Online search,
purchase in shop
Pure shop purchases
31
APPENDIX
Our Partner:
COMPANY PRESENTATION | OCTOBER 2019
 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
 Assets under management:
− approx. 195 shopping centers
− €33.0 billion market value
− 7.0 million sqm overall sales area
− approx. 19,500 retail businesses
− 4.2 million daily visitors
 Active in 10 countries:
− Austria, Czech Republic, Denmark, Germany, Hungary, Italy, Poland, Qatar, Slovakia and Turkey
MANY INVESTORS RELY ON ECE:
32
Close alliance with an European market
leader in the shopping center business
APPENDIX
Environment
COMPANY PRESENTATION | OCTOBER 2019
 Climate protection is a top priority for Deutsche EuroShop. We firmly believe that sustainability and profitability are
not mutually exclusive. Neither are shopping experience and environmental awareness. Long-term thinking is part
of our strategy, and that includes a commitment to environmental protection.
 In 2018, 19 of our 21 shopping centers had contracts with suppliers that use renewable energy sources, such as
hydroelectric power, for their electricity needs. The TÜV Süd certified the green electricity for our centers in
Germany with the renowned “Eco Power Product” label in 2018. We also plan to switch the remaining two centers
over to green electricity wherever possible within the next few years.
 The 19 centers used a total of around 72.8 million kWh of green
electricity in 2018. This represented 100% of the electricity
requirements in these shopping centers, Based on conservative
calculations, this meant a reduction of around 30,011 tonnes in
carbon dioxide emissions, which equates to the annual CO2
emissions of more than 1,350 two-person households. The use of
heat exchangers and energy-saving light bulbs allows us to
further reduce energy consumption in our shopping centers.
 Deutsche EuroShop also supports a diverse range of local and
regional activities that take place in our shopping centers in the
areas of the environment, society and the economy.
33
APPENDIX
Germany 1/2
COMPANY PRESENTATION | OCTOBER 2019
1 approximately ² as % of market rent
MAIN-
TAUNUS-
ZENTRUM
A10
CENTER
ALTMARKT-
GALERIE
RHEIN-
NECKAR-
ZENTRUM
HEROLD-
CENTER
RATHAUS-
CENTER
ALLEE-
CENTER
PHOENIX-
CENTER
LOCATION
Sulzbach/
Frankfurt
Wildau/
Berlin
Dresden
Viernheim/
Mannheim
Norderstedt Dessau Magdeburg Hamburg
INVESTMENT 52.0% 100% 100% 100% 100% 100% 50.0% 50.0%
LETTABLE SPACE SQM 124,000 121,000 77,000 69,500 54,300 52,500 51,300 43,400
PARKING 4,500 4,000 500 3,800 850 850 1,300 1,400
NUMBER OF SHOPS1 170 200 200 110 140 90 150 130
OCCUPANCY RATE² 100% 100% 100% 99% 99% 96% 98% 99%
CATCHMENT
AREA1
2.1 m.
inhabitants
1.1 m.
inhabitants
1.4 m.
inhabitants
1.5 m.
inhabitants
0.5 m.
inhabitants
0.3 m.
inhabitants
0.8 m.
inhabitants
0.5 m.
inhabitants
VISITORS 2018 7.6 m. 6.6 m. 14.4 m. 9.6 m. 10.4 m. 5.6 m. 9.1 m. 8.9 m.
OPENING/
REFURBISHMENT
1964/2004/
2011
1996/2011 2002/2011 1972/2002
1971/1995/
2003
1995 1998/2006 2004/2016
34
APPENDIX
Germany 2/2
COMPANY PRESENTATION | OCTOBER 2019
BILLSTEDT-
CENTER
SAARPARK-
CENTER FORUM
ALLEE-
CENTER
CITY-
GALERIE
CITY-
ARKADEN
CITY-
POINT
STADT-
GALERIE
STADT-
GALERIE
LOCATION Hamburg Neunkirchen Wetzlar Hamm Wolfsburg Wuppertal Kassel Passau Hameln
INVESTMENT 100% 50.0% 65.0% 100% 100% 100% 100% 75.0% 100%
LETTABLE SPACE SQM 42,500 35,600 34,500 34,000 30,800 28,700 27,800 27,700 26,000
PARKING 1,500 1,600 1,700 1,300 800 650 220 500 500
NUMBER OF SHOPS1 110 130 110 90 100 80 60 90 100
OCCUPANCY RATE² 98% 99% 100% 100% 98% 97% 100% 99% 97%
CATCHMENT
AREA1
0.8 m.
inhabitants
0.7 m.
inhabitants
0.5 m.
inhabitants
0.4 m.
inhabitants
0.5 m.
inhabitants
0.7 m.
inhabitants
0.6 m.
inhabitants
0.8 m.
inhabitants
0.3 m.
inhabitants
VISITORS 2018 10.8 m. 7.7 m. 7.9 m. 6.1 m. 7.2 m. 8.9 m. 8.6 m. 7.2 m. 6.4 m.
OPENING/
REFURBISHMENT
1969/1977/
1996
1989/1999/
2009
2005
1992/2003/
2009
2001/2006 2001/2004
2002/2009/
2015
2008 2008
1 approximately ² as % of market rent
35
APPENDIX
Europe
COMPANY PRESENTATION | OCTOBER 2019
OLYMPIA
GALERIA
BAŁTYCKA
CITY
ARKADEN ÁRKÁD
LOCATION
Brno,
Czech Republic
Gdansk,
Poland
Klagenfurt,
Austria
Pécs,
Hungary
INVESTMENT 100% 74.0% 50.0% 50.0%
LETTABLE SPACE SQM 85,000 48,700 36,900 35,400
PARKING 4,000 1,050 880 850
NUMBER OF SHOPS1 200 193 120 130
OCCUPANCY RATE² 99% 99% 98% 97%
CATCHMENT
AREA1 1.2 m. inhabitants 1.1 m. inhabitants 0.4 m. inhabitants 0.7 m. inhabitants
VISITORS 2018 8.6 m. 9.0 m. 5.2 m. 12.5 m.
OPENING/
REFURBISHMENT
1999/2014-16 2007 2006 2004
1 approximately ² as % of market rent
36
APPENDIX
Financial Calendar
COMPANY PRESENTATION | OCTOBER 2019
37
2019
30.09.-04.10. Roadshow USA, Berenberg
28.-29.10. Roadshow Tel Aviv, Jefferies
13.11. Quarterly Statement 9M 2019
18.11. DZ Bank Equity Conference, Frankfurt
18.11. Roadshow Zurich, Baaderbank
21.11. Roadshow Paris, M. M. Warburg
05.12. Berenberg European Conference, Pennyhill
12.-13.12. HSBC Global Real Estate Conference, Cape Town
2020
09.-10.01. Oddo BHF Forum, Lyon
21.01. Kepler Cheuvreux German Corporate Conf., Frankfurt
26.-27.03. Bank of America Merrill Lynch Europ. Real Estate Conf., London
16.06. Annual General Meeting, Hamburg
APPENDIX
Contact
COMPANY PRESENTATION | OCTOBER 2019
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.
38
instagram.com/deutscheeuroshop

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Deutsche EuroShop | Company Presentation | 10/19

  • 2. COMPANY Shopping centers are attractive investments because of  Continuously positive development of cash flows  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 Deutsche EuroShop is Germany´s only public company that invests solely in shopping centers Equity Story COMPANY PRESENTATION | OCTOBER 2019 1
  • 3. COMPANY At a Glance COMPANY PRESENTATION | OCTOBER 2019 1 100%-view ² as % of market rent 2018 portfolio valuation: approx. 5.01% net initial yield (after transaction costs) Professional center management by ECE, the European market leader in this industry 21 shopping centers on high street and in established locations – 17 in Germany and one each in Austria, Czech Republic, Hungary and Poland Lettable space1 approx. 1,087,000 sqm Retail shops1 approx. 2,700 Market value1 approx. €5.1 billion (DES-share €4.1 bn.) Rents per year1 €300 million (DES-share €240 mn.) Occupancy rate1, 2 99% avg. GLA per DES-center: inner city 40,400 sqm est. locations 99,900 sqm 2
  • 4. COMPANY 695 684 787 898 974 978 1,044 1,442 1,473 1,606 1,642 1,751 2,061 2,241 2,575 2,571 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Targets COMPANY PRESENTATION | OCTOBER 2019 3 Deutsche EuroShop prefers a stable increase of cash flow and portfolio value over the shortterm success. SHAREHOLDER EQUITY € million Long term NAV enhancement Buy & hold strategy: portfolio growth • by acquisition of new shopping centers • by increasing existing amounts of holdings • by expansion of portfolio centers Investment focus: min. 75% Germany max. 25% Europe Stable and attractive dividends
  • 5. SHOPPING CENTERS Germany COMPANY PRESENTATION | OCTOBER 2019 SAARPARK- CENTER CITY- GALERIE CITY- POINT RATHAUS CENTER ALLEE- CENTER PHOENIX- CENTER HEROLD- CENTER BILLSTEDT- CENTER ALLEE- CENTER STADT- GALERIE A10 CENTER STADT- GALERIE Norderstedt Wildau/Berlin Magdeburg Dessau Dresden Neunkirchen Passau Hamm Hamburg Wolfsburg Hameln Kassel Wetzlar CITY- ARKADEN Wuppertal ALTMARKT- GALERIE FORUM MAIN- TAUNUS- ZENTRUM Sulzbach/Frankfurt Viernheim/Mannheim RHEIN- NECKAR- ZENTRUM 4
  • 6. SHOPPING CENTERS Europe COMPANY PRESENTATION | OCTOBER 2019 SHOPPING CENTERS OLYMPIA GALERIA BAŁTYCKA 5 >170 million visitors per year = the basis for our retailer’s success Brno Czech Republic Gdansk Poland Pécs Hungary ÁRKÁD CITY ARKADEN Klagenfurt Austria
  • 7. SHOPPING CENTERS Trophy Asset: Main-Taunus-Zentrum “One of the top shopping centers in Germany” COMPANY PRESENTATION | OCTOBER 2019 SHOPPING CENTERS 6
  • 8. SHOPPING CENTERS Trophy Asset: Altmarkt-Galerie Dresden “The unquestionable shopping heart amid the historical and vibrant city” COMPANY PRESENTATION | OCTOBER 2019 SHOPPING CENTERS 7
  • 9. SHOPPING CENTERS Success Factors of a Modern Shopping Center COMPANY PRESENTATION | OCTOBER 2019 LOCATION More than 170 million customers per year CONVENIENCE At Your Service program started AMBIENCE Mall Beautification program started DIGITALIZATION LOGISTICS Click & Collect, Digital Mall Center Apps, Future Lab TENANT MIX Food Courts and popular tenants ASSET MANAGEMENT ECE, a leading center manager in Europe 8
  • 10. SHOPPING CENTERS COMPANY PRESENTATION | OCTOBER 2019 9 Pro-active improvements: Atmosphere
  • 11. SHOPPING CENTERS COMPANY PRESENTATION | OCTOBER 2019 10 Pro-active improvements: Convenience
  • 12. FINANCIALS 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 2.60 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 2018 2019* Free FFO Loan Redemption Dividend Payout ratio Investments: FFO provides substantial Capex Capacity COMPANY PRESENTATION | OCTOBER 2019 * Forecast, dividend per share: proposal 2.23 Payout ratio in % FFO per share in € 2.29 2.41 2.54 2.43  Total capex of €25-30 million per year on avg. €20 million per year on avg. (decreasing over time) Expected until 2023: €0.05 increase per year (guidance until dividend for 2020) 2.40- 2.44 Capex Programs At-Your-Service & Mall Beautification 11
  • 13. SHOPPING CENTERS Our Tenants1 COMPANY PRESENTATION | OCTOBER 2019 1 Selection of our well known tenants 12
  • 14. SHOPPING CENTERS COMPANY PRESENTATION | OCTOBER 2019 13 Tenant Structure: Top 10 Tenants1 1 in % of total retail rents as at 31 Dec. 2018 2018 2017 H&M 3.5% 3.5% Ceconomy 2.7% 2.7% Deichmann 2.5% 2.5% New Yorker 2.4% 2.3% Peek & Cloppenburg 2.3% 2.3% C&A 2.0% 2.0% Rewe 1.8% 1.6% Douglas 1.8% 1.8% Metro 1.8% 1.7% DM 1.4% 1.4% Total 22.2% 21.8% 78% 22% TOP 10 Tenants LOW LEVEL OF DEPENDENCE ON THE TOP 10 TENANTS
  • 15. SHOPPING CENTERS Maturity Distribution of Rental Contracts1 COMPANY PRESENTATION | OCTOBER 2019 14 Long-term contracts base rental income Weighted maturity 5.1 years 1 as % of rental income as at 31 Dec. 2018 2024 et sqq: 48% 2023: 10% 2022: 11% 2021: 20% 2020: 5% 2019: 6%
  • 16. SHOPPING CENTERS Fashion 49.9% Non-food/ electronics 18.8% Department stores & hypermarkets 12.3% Food & supermarkets 6.8% Health & beauty 6.0% Catering 4.4% Services 1.8% Sector Mix1 COMPANY PRESENTATION | OCTOBER 2019 Balanced sector diversification 1 as % of rental space as at 31 Dec. 2018 15
  • 17. SHOPPING CENTERS Retail turnover H1 20191 COMPANY PRESENTATION | OCTOBER 2019 16  Retail turnover development on a like-for-like basis: -0.2% +1.0% +0.1% 1 German centers on a like-for-like basis (estimated turnover 2019: €2.0 billion) 2 The sum may not equal the totals due to rounding RETAIL SECTOR % change in 2019 rent-to-sales ratio in % % of sales % of space DEPARTMENT STORES & HYPERMARKETS -0.7 6.4 7.7 14.9 FOOD -2.2 7.6 8.9 6.6 FASHION TEXTILES -0.1 12.9 29.3 39.1 SHOES & LEATHER GOODS +2.3 15.1 4.9 5.9 SPORTS +1.8 10.1 5.2 6.0 HEALTH & BEAUTY +2.1 7.2 12.3 5.8 GENERAL RETAIL -1.4 12.9 8.2 9.1 ELECTRONICS -0.6 3.8 14.6 7.5 SERVICES -4.5 4.9 4.8 1.6 FOOD CATERING +1.6 12.3 4.1 3.4 TOTAL -0.2 9.4 100² 100²  Absolute retail turnover development: -0.4% +1.8% +0.0% Germany Abroad Total
  • 18. SHOPPING CENTERS Trends in the Retail (Real Estate) Sector: Chances & Challenges COMPANY PRESENTATION | OCTOBER 2019 17 Quality shopping centers transform from pure market places to platforms with multiple functions: Shopping – Meeting Places – Social Media Hubs – Entertainment – Show Rooming – Logistics… TREND CONSEQUENCE General trend of economic growth basis for consumption growth for the retail industry as a whole E-Commerce challenge disruption creates innovative ideas & adjustment momentum Multi channel world quickly evolving online goes offline & offline goes online Changing customer behavior driver for merger of on- and offline shopping channels Digitalization as important key driver innovations in service, information, distribution and analytics Physical customers interaction vital branding, customer retention, community & loyalty Challenges for growing online deliveries quick, efficient and sustainable deliveries via shop logistics Customer expectations increasing differentiation through services and experience Strong asset management essential large & well-managed center portfolio´s with competitive edge
  • 19. SHOPPING CENTERS • Digital Mall • center website • center app • social media • „Easy to Park“ card • QR code car finder • 3D wayfinding systems • indoor navigation • InfoGate • gift-wrapping and packaging services • personal shopper • guest card • mobile device charging stations • lounge areas • selfie photo boxes • free Wi-Fi • same day delivery service • prepaid parking cards Customer Expectations Increasing: Services & Information COMPANY PRESENTATION | OCTOBER 2019 18 Source: ECE Pro-active improvements to preserve our centers as highly attractive destinations
  • 20. FINANCIALS Key Figures H1 2019 € million 01.01. – 30.06.2019 01.01. – 30.06.2018 CHANGE Revenue 111.9 111.6 0.3% Net operating income (NOI) 100.4 100.5 -0.1% Earnings before interest and tax (EBIT) 98.2 98.0 0.2% Financial gains / losses -16.3 -19.2 14.7% Valuation -8.4 -9.6 12.9% Earnings before tax (EBT, excl. valuation) 1 81.9 78.9 3.8% Consolidated profit [earnings per share in €] 66.2 [1.07] 55.3 [0.89] 19.7% [20.2%] FFO [per share in €] 75.0 [1.21] 75.5 [1.22] -0.7% [-0.8%] EPRA Earnings [per share in €] 84.3 [1.37] 73.6 [1.19] 14.5% [15.1%] € million 30.06.2019 31.12.2018 CHANGE Total equity2 2,545.6 2,573.4 -1.1% Liabilities 2,046.7 2,036.8 0.5% Total assets 4,592.3 4,610.2 -0.4% Equity ratio2 55.4% 55.8% Loan to value ratio - consolidated3 - „look-through“4 32.3% 34.5% 31.8% 34.0% Cash and cash equivalents 88.0 116.4 -24.4% COMPANY PRESENTATION | OCTOBER 2019 19 1 including the share attributable to equity-accounted joint ventures and associates 2 including third-party interest in equity 3 Ratio of net financial liabilities (financial liabilities less cash and cash equivalents) to joint ventures and associates non current assets (investment properties and investments accounted for using the equity method) 4 Ratio of net financial liabilities to long-term assets calculated on the basis of the groups share
  • 21. FINANCIALS Valuation1 – Investment Properties 2018 COMPANY PRESENTATION | OCTOBER 2019 1 External appraisers: since 2015: JLL 2 2014 – 2018, Compound Annual Growth Rate (CAGR) 5.80 5.89 5.92 5.98 5.97 5.87 5.46 5.24 5.23 5.32 5.52 5.61 5.64 5.70 5.69 5.53 5.13 4.94 4.93 5.01 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net operating yield in % Net initial yield in % in € thousand Basis change of -25bps change of +25bps Rent increase rates 1.33% -131,500 +159,900 Discount rate 5.90% +79,000 -75,200 Capitalization rate 5.07% +136,100 -122,100 Cost ratio 10.20% +9,800 -10,800 SENSITIVITY ANALYSIS 20 33.17 39.58 43.24 43.19 43.17 2014 2015 2016 2017 2018 NAV PER SHARE (EPRA) € +6.8%2
  • 22. FINANCIALS Loan Structure1,2 1 as of 30 June 2019 2 excl. non-consolidated loans  19 German and 4 foreign bank partners  Weighted maturity of fixed interest periods 5.7 years1 INTEREST LOCKIN DURATION PRINCIPLE AMOUNTS (€ MILLION) SHARE OF TOTAL LOAN AVG. INTEREST RATE Up to 1 year 12.0 0.8% 3.46% 1 to 5 years 3.3 680.3 45.1% 3.33% 5 to 10 years 8.1 581.5 38.5% 2.40% Over 10 years 11.0 235.6 15.6% 1.92% Total1 5.7 1,509.4 100% 2.50% PAGE XY 3.69 3.67 2.89 2.72 2.50 0 2 4 6 8 2.00 2.50 3.00 3.50 4.00 2015 2016 2017 2018 2019 avg. interest rate weighted maturity yrs% COMPANY PRESENTATION | OCTOBER 2019 21 1
  • 23. FINANCIALS IN € MILLION END OF FIXED INTEREST PERIODS RESPECTIVELY EXPIRING LOANS AVG. INTEREST RATE DES‘ SHARE 2019 0 2020 35.0 4.00% 50% 2021 63.3 4.59% 50% 2022 12.1 4.90% 50% 2023-2025 0 Maturities until 20241,2 COMPANY PRESENTATION | OCTOBER 2019 22 1 as of 30 June 2019 2 excl. at-equity consolidated loans IN € MILLION END OF FIXED INTEREST PERIODS RESPECTIVELY EXPIRING LOANS AVG. INTEREST RATE REGULAR REDEMPTION PAYMENTS TOTAL MATURITIES 2019 123.1 4.73% 12.0 135.1 2020 134.1 4.52% 16.4 150.5 2021 198.3 4.48% 14.3 212.6 2022 217.8 3.26% 15.5 233.3 2023 209.0 2.99% 8.8 217.8 2024 0 9.2 9.2 882.3 At-equity consolidated loans1 Phoenix-Center, Hamburg €46.9m, 1.09%, 9y (06/2020) €12.1m, 1.09%, 9y (06/2020) Already fixed: €132.2m, 2.21%, 10y (08/2019) €139.9m, 1.68%, 10y (01/2020) Lower refinancing cost = positive FFO and EPRA earnings impact
  • 24. FINANCIALS COMPANY PRESENTATION | OCTOBER 2019 23 REVENUE in € million EBT (excl. valuation) in € million FFO in € million EBIT in € million NUMBER OF SHARES in millions FFO PER SHARE in € 129.9 148.1 150.4 148- 151 150- 153 2016 2017 2018 2019 2020 53.95 58.25 61.78 61.78 61.78 2016 2017 2018 2019 2020 2.41 2.54 2.43 2.40- 2.44 2.43- 2.47 2016 2017 2018 2019 2020 134.5 153.3 160.9 159- 162 161- 164 2016 2017 2018 2019 2020 205.1 218.5 225.0 222- 226 222- 226 2016 2017 2018 2019 2020 178.6 192.4 199.1 194- 198 194- 198 2016 2017 2018 2019 2020 +2.2%1 +4.8%1 +3.9%1 +2.4%1 +3.4%1 +0.4%1 Conversion of the conv. bond Forecast 1 Compound Annual Growth Rate (CAGR) 2016 – 2020
  • 25. SHARE 1.05 1.10 1.10 1.20 1.25 1.30 1.35 1.40 1.45 1.507 1.558 1.608 25.88 43.17 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Dividend & Performance COMPANY PRESENTATION | OCTOBER 2019 1 respectively paid for the previous FY 2 as of 31 Dec. 2018 3 2019: as of 30 September 2019 4 EPRA/NAREIT Europe 5 German government bonds index 6 open ended real estate funds 7 paid on 17 June 2019 8 proposal 9 2010 - 2021, Compound Annual Growth Rate (CAGR) of the dividend Share price3 DES DAX EPRA4 REX5 OEF6 1 year (2018) -21.8% -18.3% -8.3% +1.5% +3.2% 3 years -29.4% = -11.0% p.a. -0.6% p.a. -0.4% p.a. +0.9% p.a. +4.2% p.a. 5 years -4.2% = -0.9% p.a. +2.0% p.a. +8.4% p.a. +2.1% p.a. +3.8% p.a. Since IPO (2001) +172.2% = +5.7% p.a. +2.8% p.a. +7.3% p.a. +4.1% p.a. +3.4% p.a. NAV per shareTREND OF SHARE Dividend1 PERFORMANCE2 24 +3.9%9
  • 26. SHARE Shareholder Structure1 COMPANY PRESENTATION | OCTOBER 2019 1 Status: 13 September 2019 Institutional Investors 46.2% Private Investors 23.2% Alexander Otto 19.5% BlackRock 2.8% US 12% Germany 67% UK 7% FR 2% Other 6% CH 1% NO 3% Johannes Schorr 3.3% State Street 5.0%  24,550 shareholders  Free float 80.5% 25 NL 2%
  • 27. SHARE Analysts‘ Consensus1 COMPANY PRESENTATION | OCTOBER 2019 1 aggregated by DES, median values, status: 2 April 2019, 18 analysts SELL UNDERPERFORM NEUTRAL  Berenberg Bank  Commerzbank  Deutsche Bank  Green Street Advisors  HSBC  J.P. Morgan Cazenove  NORD/LB  Pareto OUTPERFORM 0% 20% 40% 60% 80% 100% Q2 04 Q3 05 Q4 06 Q1 08 Q2 09 Q3 10 Q4 11 Q1 13 Q2 14 Q3 15 Q4 16 Q1 18 Q2 19 negative neutral positive BUY  Kepler Cheuvreux  Metzler  M.M. Warburg  Societe Generale  Baader Bank  Bankhaus Lampe  DZ Bank  Independent Research median/in € 2019 2020 Revenue (€ million) 224.8 225.5 EBIT (€ million) 196.4 196.3 FFO per share 2.42 2.43 NAV per share 42.89 42.61 Dividend 1.55 1.60 Price target (mean) 31.91 26  Kempen
  • 28. SHARE 10 Reasons to Invest COMPANY PRESENTATION | OCTOBER 2019 01 02 03 04 05 06 07 08 09 10 The only public company in Germany to invest solely in shopping centers Prime locations Proven, conservative strategy Stable cash flow with long term visibility Shareholder- friendly dividend policy Experienced management team Excellent track record Centers almost 100% let Inflation- protected rental agreements Solidity combined with growth potential 27
  • 29. APPENDIX Key Data of the Share COMPANY PRESENTATION | OCTOBER 2019 Listed since 02.01.2001 Nominal capital €61,783,594.00 Outstanding shares 61,783,594 Class of shares Registered shares Dividend 2018(paid on 17 June 2019) €1.50 52W High €28.72 52W Low €22.10 Share price (30 September 2019) €25.88 Market capitalisation €1.59 billion Avg. turnover per day last 12 months (XETRA) 155,440 shares Indices SDAX, EPRA, GPR, MSCI Small Cap, F.A.Z.-Index, GPTMS150 Index Official market Prime Standard Frankfurt and XETRA OTC market Berlin, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart ISIN DE 000 748 020 4 Ticker DEQ, Reuters: DEQGn.DE Market maker Oddo Seydler 28
  • 30. APPENDIX -1 0 1 2 3 4 5 6 7 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Norderstedt 6.1% Passau 5.5% A10 6.5% Billstedt 6.0% Magdeburg 5.9% Dresden 5.4% German Prime Shopping Center Yields COMPANY PRESENTATION | OCTOBER 2019 29 Source: JLL, EUR Midswaps 7 years % German shopping center prime yields Euro Swap Rate COMPRESSION DECOMPRESSION POLARISATION DECOMPRESSION ? Neunkirchen 5.0% Brno 5.0% COMPRESSION
  • 31. SHOPPING CENTERS Customers Love All Ways of Shopping: “On- and Offline” COMPANY PRESENTATION | OCTOBER 2019 30 An example for a modern customer journey Impulse Research Consultation Transaction Payment Delivery Return After sales Customer loyalty Preparation of Purchase Transaction Service  The cross-channel customer combines stationary and online channels  The one-channel customer uses only one channel  Retailers have to adjust to be successful Source: ECE Source: EY
  • 32. APPENDIX Online vs. Stationary Retail? COMPANY PRESENTATION | OCTOBER 2019 TURNOVER DISTRIBUTION OF A FASHION RETAILER Stationary retail transforms from “Point of Purchase” to “Touch Point” (product experience) New store concepts (flagship store, show room, multi-channel store, pick-up store), click & collect, augmented reality, online goes offline, mobile services “Location, location, location” newly interpreted: “Convenience, attractivity & likeability“ Source: GfK Pure online purchases Order in shop, dispatch by post Order online, pickup in shop (click & collect) Online search, purchase in shop Pure shop purchases 31
  • 33. APPENDIX Our Partner: COMPANY PRESENTATION | OCTOBER 2019  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  Assets under management: − approx. 195 shopping centers − €33.0 billion market value − 7.0 million sqm overall sales area − approx. 19,500 retail businesses − 4.2 million daily visitors  Active in 10 countries: − Austria, Czech Republic, Denmark, Germany, Hungary, Italy, Poland, Qatar, Slovakia and Turkey MANY INVESTORS RELY ON ECE: 32 Close alliance with an European market leader in the shopping center business
  • 34. APPENDIX Environment COMPANY PRESENTATION | OCTOBER 2019  Climate protection is a top priority for Deutsche EuroShop. We firmly believe that sustainability and profitability are not mutually exclusive. Neither are shopping experience and environmental awareness. Long-term thinking is part of our strategy, and that includes a commitment to environmental protection.  In 2018, 19 of our 21 shopping centers had contracts with suppliers that use renewable energy sources, such as hydroelectric power, for their electricity needs. The TÜV Süd certified the green electricity for our centers in Germany with the renowned “Eco Power Product” label in 2018. We also plan to switch the remaining two centers over to green electricity wherever possible within the next few years.  The 19 centers used a total of around 72.8 million kWh of green electricity in 2018. This represented 100% of the electricity requirements in these shopping centers, Based on conservative calculations, this meant a reduction of around 30,011 tonnes in carbon dioxide emissions, which equates to the annual CO2 emissions of more than 1,350 two-person households. The use of heat exchangers and energy-saving light bulbs allows us to further reduce energy consumption in our shopping centers.  Deutsche EuroShop also supports a diverse range of local and regional activities that take place in our shopping centers in the areas of the environment, society and the economy. 33
  • 35. APPENDIX Germany 1/2 COMPANY PRESENTATION | OCTOBER 2019 1 approximately ² as % of market rent MAIN- TAUNUS- ZENTRUM A10 CENTER ALTMARKT- GALERIE RHEIN- NECKAR- ZENTRUM HEROLD- CENTER RATHAUS- CENTER ALLEE- CENTER PHOENIX- CENTER LOCATION Sulzbach/ Frankfurt Wildau/ Berlin Dresden Viernheim/ Mannheim Norderstedt Dessau Magdeburg Hamburg INVESTMENT 52.0% 100% 100% 100% 100% 100% 50.0% 50.0% LETTABLE SPACE SQM 124,000 121,000 77,000 69,500 54,300 52,500 51,300 43,400 PARKING 4,500 4,000 500 3,800 850 850 1,300 1,400 NUMBER OF SHOPS1 170 200 200 110 140 90 150 130 OCCUPANCY RATE² 100% 100% 100% 99% 99% 96% 98% 99% CATCHMENT AREA1 2.1 m. inhabitants 1.1 m. inhabitants 1.4 m. inhabitants 1.5 m. inhabitants 0.5 m. inhabitants 0.3 m. inhabitants 0.8 m. inhabitants 0.5 m. inhabitants VISITORS 2018 7.6 m. 6.6 m. 14.4 m. 9.6 m. 10.4 m. 5.6 m. 9.1 m. 8.9 m. OPENING/ REFURBISHMENT 1964/2004/ 2011 1996/2011 2002/2011 1972/2002 1971/1995/ 2003 1995 1998/2006 2004/2016 34
  • 36. APPENDIX Germany 2/2 COMPANY PRESENTATION | OCTOBER 2019 BILLSTEDT- CENTER SAARPARK- CENTER FORUM ALLEE- CENTER CITY- GALERIE CITY- ARKADEN CITY- POINT STADT- GALERIE STADT- GALERIE LOCATION Hamburg Neunkirchen Wetzlar Hamm Wolfsburg Wuppertal Kassel Passau Hameln INVESTMENT 100% 50.0% 65.0% 100% 100% 100% 100% 75.0% 100% LETTABLE SPACE SQM 42,500 35,600 34,500 34,000 30,800 28,700 27,800 27,700 26,000 PARKING 1,500 1,600 1,700 1,300 800 650 220 500 500 NUMBER OF SHOPS1 110 130 110 90 100 80 60 90 100 OCCUPANCY RATE² 98% 99% 100% 100% 98% 97% 100% 99% 97% CATCHMENT AREA1 0.8 m. inhabitants 0.7 m. inhabitants 0.5 m. inhabitants 0.4 m. inhabitants 0.5 m. inhabitants 0.7 m. inhabitants 0.6 m. inhabitants 0.8 m. inhabitants 0.3 m. inhabitants VISITORS 2018 10.8 m. 7.7 m. 7.9 m. 6.1 m. 7.2 m. 8.9 m. 8.6 m. 7.2 m. 6.4 m. OPENING/ REFURBISHMENT 1969/1977/ 1996 1989/1999/ 2009 2005 1992/2003/ 2009 2001/2006 2001/2004 2002/2009/ 2015 2008 2008 1 approximately ² as % of market rent 35
  • 37. APPENDIX Europe COMPANY PRESENTATION | OCTOBER 2019 OLYMPIA GALERIA BAŁTYCKA CITY ARKADEN ÁRKÁD LOCATION Brno, Czech Republic Gdansk, Poland Klagenfurt, Austria Pécs, Hungary INVESTMENT 100% 74.0% 50.0% 50.0% LETTABLE SPACE SQM 85,000 48,700 36,900 35,400 PARKING 4,000 1,050 880 850 NUMBER OF SHOPS1 200 193 120 130 OCCUPANCY RATE² 99% 99% 98% 97% CATCHMENT AREA1 1.2 m. inhabitants 1.1 m. inhabitants 0.4 m. inhabitants 0.7 m. inhabitants VISITORS 2018 8.6 m. 9.0 m. 5.2 m. 12.5 m. OPENING/ REFURBISHMENT 1999/2014-16 2007 2006 2004 1 approximately ² as % of market rent 36
  • 38. APPENDIX Financial Calendar COMPANY PRESENTATION | OCTOBER 2019 37 2019 30.09.-04.10. Roadshow USA, Berenberg 28.-29.10. Roadshow Tel Aviv, Jefferies 13.11. Quarterly Statement 9M 2019 18.11. DZ Bank Equity Conference, Frankfurt 18.11. Roadshow Zurich, Baaderbank 21.11. Roadshow Paris, M. M. Warburg 05.12. Berenberg European Conference, Pennyhill 12.-13.12. HSBC Global Real Estate Conference, Cape Town 2020 09.-10.01. Oddo BHF Forum, Lyon 21.01. Kepler Cheuvreux German Corporate Conf., Frankfurt 26.-27.03. Bank of America Merrill Lynch Europ. Real Estate Conf., London 16.06. Annual General Meeting, Hamburg
  • 39. APPENDIX Contact COMPANY PRESENTATION | OCTOBER 2019 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. 38 instagram.com/deutscheeuroshop