Deutsche EuroShop AG · XETR:DEQ
Deutsche EuroShop — FY2004 Earnings Presentation
27 slides from Deutsche EuroShop's earnings presentation, Apr 18, 2005
Slide 1: 2004 Analyst and Investor Conference Call
1 The Art of Shopping 2004 Analyst and Investor Conference Call Hamburg, 18 April 2005 +++ Die Shoppingcenter-AG +++
Slide 2: Agenda
2 Agenda 1. 2004 Highlights 2. Conversion from HGB to IFRS 3. 2004 Earnings and Net Asset Value 4. Outlook +++ Die Shoppingcenter-AG +++
Slide 3: 2004 Highlights
3 The Art of Shopping 2004 Highlights +++ Die Shoppingcenter-AG +++
Slide 4: 2004 Highlights
4 2004 Highlights January Inclusion in the EPRA Index February Topping-out ceremony, Phoenix-Center Hamburg March First publication of the net asset value Opening of the Árkád Pécs shopping centre, Hungary June Topping-out ceremony, Forum Wetzlar General shareholders‘ meeting / dividend amounts to €
Slide 5: New Investment: City-Arkaden Klagenfurt
5 New Investment City-Arkaden Klagenfurt 65 % rented out 1 year before the opening DES investment 50% Number of shops approx. 120 Rental space in 30,000 Percentage rented out 65% m² Catchment area 0.4 m people Parking spaces 850 Opening Spring 2006 +++ Die Shoppingcenter-AG +++
Slide 6: Openings: Pécs and Hamburg
6 Openings Pécs und Hamburg Location Árkád Phoenix-Center Pécs, Hungary Hamburg Investment 50.0% 50.0% Rental area in m² 34,200 39,000 Parking spaces 850 1,600 Number of shops approx. 130 approx. 110 Percentage rented out 99% 96% Catchment area Population of 0.5 million Population of 0.6 million Ope
Slide 7: Maturity Distribution of rental contracts
7 Maturity Distribution of rental contracts* Long-term contracts 2010 et sqq: guarantee rental income 86% 2005: 2% 2006: 4% 2007: 4% Weighted maturity 2008: 2% > 8 years 2009: 2% +++ Die Shoppingcenter-AG +++ * as % of rental income – not including Klagenfurt as at December 31, 2004
Slide 8: Liabilities - Maturities
8 Liabilities - Maturities more than 8 years Ø effective interest rate 65 % 5.66% up to 1 year 1% 1 to 5 years 8% 5 to 8 years 26 % +++ Die Shoppingcenter-AG +++
Slide 9: Establishment in the MDAX
9 Establishment in the MDAX 60/60 rule Se 3 O 3 D 3 Ja 3 Se 4 O 4 D 4 Ja 4 M 4 Ap 4 M 5 05 Ju 3 Ju 3 Fe 4 Ju 4 Ju 4 Fe 5 M 3 N 3 M 4 N 4 3 0 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 r0 0 r0 0 l0 l0 Position ov ez ov ez g p b g p b rz rz n n n n ai ai kt kt Ap Au Au 0 Market capitalisation: 10 monthly compu
Slide 10: Dividend Policy
10 Dividend Policy Continuity Div. in € Price in € 2,00 39,00 1,92 1,92 1,92 1,92 38,00 Tax-free dividend of € 1.92 per share 1,90 37,00 36,00 2004 performance: 1,80 35,00 +20 % 34,00 1,70 33,00 1,60 32,00 31,00 1,50 30,00 2001 2002 2003 2004 Dividend Price at the end of the year +++ Die Shoppingcen
Slide 11: Conversion from HGB to IFRS
The Art of Shopping Conversion from HGB to IFRS
Slide 12: Prologue: HGB to IFRS 2003
12 Prologue: HGB IFRS 2003 ! Change in the consolidated entity: ! Previously eight fully consolidated subsidiaries (> 50 % interest) ! Now additional proportionate consolidation of the Dresden, Kassel and Pécs investments (between 40 % and 50 % interest) ! Main-Taunus-Zentrum and Breslau count as fi
Slide 13: Accounting Decisions
13 Accounting Decisions Decision alternatives Effects on the balance sheet Effects on P&L 1. Investment properties, IAS 40 1.1. At cost none none (acquisition/production cost) 1.2. Fair value (market prices) yes yes 2. Financial instruments, IAS 39 2.1. At cost none none (acquisition/production cost
Slide 14: Effects on Net Assets, 2003
14 Effects on Net Assets, 2003 Thereof Differen proportionate € thousand HGB IFRS ce consolidation Fixed/non-current 851.845 1.095.444 243.599 93.998 assets Current assets 128.837 145.012 16.175 15.909 Total assets 980.682 1.240.456 259.774 109.907 Equity 528.821 638.953 110.132 11.389 Minority inte
Slide 15: Reconciliation of Consolidated Equity from HGB to IFRS
15 Reconciliation of Consolidated Equity from HGB to IFRS as of 31 Dec. 2003 € thousand 650,000 +68,437 638,953 +19,543 +5,529 625,000 600,000 -22,421 575,000 +20,081 +18,964 550,000 528,821 525,000 +110,132 500,000 475,000 450,000 fit S ro R tp 40 3 3 s ts r c lid B/IF ne 00 xe 00 S un IA ty ta .2
Slide 16: Effects on the Earnings Position, 2003
16 Effects on the Earnings Position, 2003 Thereof proportionate € thousand 2003 consolidation Net profit for the period, HGB, 31 Dec. 2003 -524 0 Rental and other income 8.912 8.907 HGB IFRS Other expenses -4.789 -4.711 T€ +19,543 Depreciation and amortization 22.380 0 Expenses and income from the m
Slide 17: 2004 Earnings
17 The Art of Shopping 2004 Earnings +++ Die Shoppingcenter-AG +++
Slide 18: 2004 Balance Sheet
18 2004 Balance Sheet € thousand 2004 2003 In/decrease Fixed/non-current assets 1.203.251 1.095.444 107.807 Current assets 166.957 145.012 21.945 Total assets 1.370.208 1.240.456 129.752 Equity 684.412 695.301 -10.889 Non-current liabilities 597.662 476.646 121.016 Deferred taxes 51.676 43.586 8.090
Slide 19: Reconciliation of Fixed/Non-Current Assets
19 Reconciliation of Fixed/Non-Current Assets € in million +154.1 1.250 +15.7 +2.4 1,203.2 1.200 -57.1 -6.3 -1.1 1.150 Ø investment rating still A (excellent) 1,095.4 1.100 +107.8 Breslau and Pécs starting with A rating 1.050 Ø 6.20 % cap rate has risen to 6.54 % 1.000 3 4 00 00 ts en .2 .2 40 39 40
Slide 20: Summary
20 Summary ! Revenue €61.4 million +6% ! EBITDA €50.7 million +25% ! EBIT €50.7 million +25% ! Consolidated €27.7 million +46% net profit ! EPS €1.78 +46% ! NAV per share €43.96 +1% ! Free Cash Flow €30.7 million +10% +++ Die Shoppingcenter-AG +++
Slide 21: 2004 Profit and Loss Account
21 2004 Profit and Loss Account € thousand 2004 2003 In/decrease Revenue 61.421 57.879 6% Other operating income 9.343 1.043 Expenses -20.072 -18.385 EBITDA 50.692 40.537 25% Depreciation and amortization -14 -13 EBIT 50.678 40.524 25% Interest income* -25.312 -21.684 Income from investments 4.799 3
Slide 22: Reconciliation of Earnings
22 Reconciliation of Earnings € thousand Consolidated net profit for the period, 2003 19,019 Turnover 3,542 Other operating income 8,300 Expenses -1,687 Interest income -2,238 Interest expenses -1,390 Income from investments 1,314 Valuation result 2,468 Taxes -3,256 Minority holdings 1,665 Consolida
Slide 23: Earnings per Share
23 Earnings per Share 2004 2003 In/decrease Consolidated net profit for the 27,736 19,019 period, k€ Earnings per share 1.78 € 1.22 € 46% thereof current earnings per share 1.32 € 0.93 € 42% valuation result 0.46 € 0.29 € 59% +++ Die Shoppingcenter-AG +++
Slide 24: Net Asset Value
24 Net Asset Value € thousand 2004 2003 Non-current assets 1.203.251 1.095.444 Current assets 166.957 145.012 Total assets 1.370.208 1.240.456 Non-current liabilities -597.662 -476.646 Current liabilities -36.458 -24.923 Net assets 736.088 738.887 Equity share, minority shareholders -49.271 -56.348
Slide 25: Outlook
The Art of Shopping Outlook
Slide 26: Outlook, 2005
26 Outlook, 2005 € in million 68-72 70 61.4 NAV 2005: 57.9 60 initial valuation of Forum Wetzlar and Revenue 50 Phoenix-Center Hamburg 60 Acquisition volume: 53-56 € 100 to 150 million 55 50 48,6 45 42,7 EBIT 40 35 28-30 30 28,2 24,5 25 EBT 20 +++ Die Shoppingcenter-AG +++ 2003 2004 2005
Slide 27: Contact
27 Contact Deutsche EuroShop AG Patrick Kiss Investor & Public Relations Oderfelder Strasse 23 20149 Hamburg Tel. +49 (40) 41 35 79 - 20 Fax +49 (40) 41 35 79 - 29 E-Mail: [email protected] www.deutsche-euroshop.de ISIN: DE 000 748 020 4 +++ Die Shoppingcenter-AG +++