Deutsche EuroShop AG · XETR:DEQ
Deutsche EuroShop — Investor Presentation (June 2006)
38 slides from Deutsche EuroShop's investor presentation, June 2006
Slide 1: Company Presentation
Company Presentation June 2006 The Shopping Center Company
Slide 2: Contents
Company Shopping Centers Financials Shopping Center Share Appendix Contents The Shopping Center Company 2
Slide 3: Equity Story
Deutsche EuroShop AG is Germany´s only public company that invests solely in shopping centers. Pure Player Shopping centers are attractive investments because of continuously positive development of rents stable long term growth prime locations high quality standards Equity Story The Sho
Slide 4: At a Glance
15 shopping centers on high street and in established 15 Centers: 14 in operation locations – 11 in Germany and one each in Austria, 1 in the pipeline Hungary, Italy and Poland Total Deutsche EuroShop Lettable space 584,500 sqm 377,600 sqm Retail shops approx. 1,415 Investment €2.1 billion €1.4
Slide 5: Lease System
5 turnover-linked rent 4 3 2 CPI-linked minimum rent General form of lease 1 contracts for DES- tenants 0 1 2 3 4 5 6 7 8 9 10 Lease standards: 10 years lease only Participation in sales no break-up option growth of retail turnover-linked rents industry minimum rents are CPI-linked, upward
Slide 6: At a Glance
Attractive after-tax dividend yield of currently 3.8% Rating: entire portfolio was given a „very good“ rating Consolidated equity ratio currently 51% (plan: >45%) € million 2003 2004 2005 Q1 2006 Revenue 57.9 61.4 72.1 22.7 EBIT 39.5 49.8 57.5 17.3 EBT excl. revaluation 21.3 29.2 31.1 8.7 EBT
Slide 7: Targets
Long term net asset value enhancement Main focus on NAV “buy & hold”-strategy and dividend Stable and attractive dividends Investment-focus: Germany and up to 25% Europe Portfolio expansion by 10% per year by acquisition of new shopping centers Continuous growth by increasing existing
Slide 8: Contents
Company Shopping Centers Financials Shopping Center Share Appendix Contents The Shopping Center Company 8
Slide 9: Shopping Centers Germany
Location Main-Taunus-Zentrum Rhein-Neckar-Zentrum Altmarkt-Galerie Frankfurt Viernheim Dresden Investment 43.1% 99.8% 50.0% Lettable space sqm 103,400 63,600 44,500 Parking 4,000 3,800 500 Number of shops approx. 100 approx. 110 approx. 110 Occupancy rate 100% 100% 99% Catchment area approx. 2.2 m.
Slide 10: Shopping Centers Germany
Location Phoenix-Center Allee-Center Forum Hamburg Hamm Wetzlar Investment 50.0% 87.7% 65.0% Lettable space sqm 39,200 35,100 34,500 Parking 1,600 1,300 1,700 Number of shops approx. 110 approx. 80 approx. 110 Occupancy rate 96% 100% 100% Catchment area approx. 0.6 m. inhabitants approx. 1.0 m. inha
Slide 11: Shopping Centers Germany
Location Rathaus-Center City-Galerie City-Point Dessau Wolfsburg Kassel Investment 94.9% 89.0% 40.0% Lettable space sqm 30,600 30,100 29,500 Parking 850 800 220 Number of shops approx. 80 approx. 90 approx. 60 Occupancy rate 98% 100% 100% Catchment area approx. 0.5 m. inhabitants approx. 0.6 m. inha
Slide 12: Shopping Centers Germany
Location City-Arkaden Stadt-Galerie Wuppertal Hameln Investment 72.0% 94.9% Lettable space sqm 28,700 25,000 Parking 650 500 Number of shops approx. 85 approx. 90 Occupancy rate 100% > 57% Catchment area approx. 0.7 m. inhabitants approx. 0.4 m. inhabitants Opening / refurbishm. 2001 / 2004 Spring 2
Slide 13: Shopping Centers Europe
Location City Arkaden Árkád Galeria Dominikanska Klagenfurt, Austria Pécs, Hungary Wroclaw, Poland Investment 50.0% 50.0% 33.3% Lettable space sqm 36,700 35,200 32,700 Parking 880 850 900 Number of shops approx. 120 approx. 130 approx. 100 Occupancy rate 100% 100% 100% Catchment area approx. 0.4 m.
Slide 14: Shopping Centers Europe
Location Centro Commerciale Tuscia Viterbo, Italy Investment 100% Lettable space sqm 15,200 Parking 1,100 Number of shops approx. 40 Occupancy rate 100% Catchment area approx. 0.3 m. inhabitants Opening 1998 Shopping Centers Europe The Shopping Center Company 14
Slide 15: Shopping Centers Total
Total Total Total Domestic International Deutsche EuroShop Lettable space sqm 464,700 119,800 584,500 Parking 15,920 3,730 19,650 Number of shops 1,025 390 1,415 Occupancy rate* 99% 100% 99% Catchment area 9.7 m. inhabitants 2.2 m. inhabitants 11.9 m. inhabitants Shopping Centers Total * incl. offic
Slide 16: Our Tenants
Well-known tenants Our Tenants The Shopping Center Company 16
Slide 17: Tenants Structure
Douglas group 4.9% Low level of dependence on Metro group 4.5% the top 10 tenants Peek & Cloppenburg 2.7% H&M 2.4% Deichmann 1.8% Zara 1.7% New Yorker 1.6% Engelhorn & Sturm 1.6% dm – Drogeriemarkt 1.3% REWE group 1.3% Other tenants Total 76.2% Total 23.8% Tenants Structure Top 10 tenants* * in % of
Slide 18: Maturity Distribution of Rental Contracts
Long-term contracts guarantee rental income 2011 et sqq: 88% 2006: 4% 2007: 2% 2008: 2% 2009: 1% 2010: 3% Weighted maturity > 8 years Maturity Distribution of Rental Contracts* * as % of rental income – not including Hameln and Klagenfurt as at December 31, 2005 The Shopping Center Company 18
Slide 19: Sector and Retailer Mix
non-foods / Balanced sector and electronics department stores retailer diversification 19% 14% food 8% health & beauty regional retail 6% chains catering 22% local 5% entrepreneurs services 29% fashion 1% 47% inter- / national retailers 49% Sector and *in % of lettable space; not including Hameln un
Slide 20: Contents
Company Shopping Centers Financials Shopping Center Share Appendix Contents The Shopping Center Company 20
Slide 21: Balance Sheet
€ thousand 31. Mar. 2006 31. Dec. 2005 +/- Fixed/non-current assets 1,504,618 1,327,005 177,613 Current assets 117,373 216,553 -99,180 Total assets 1,621,991 1,543,558 78,433 Equity 791,291 787,446 3,845 Long term debt 687,101 616,373 70,728 Deferred taxes 74,176 69,826 4,350 Current liabilities 69,
Slide 22: Profit and Loss Account
01. Jan.- 01. Jan.- € thousand 31. Mar. 2006 31. Mar. 2005 +/- Revenue 22,746 17,408 31% Other operating income 520 489 Property operating and management costs -3,520 -3,287 Other operating expenses -2,421 -967 EBIT 17,325 13,643 27% Net interest expense -9,056 -7,679 Income from investments 400 1,0
Slide 23: Revenue, EBIT, EBT and 2006 forecast
€ million Revenue 100 91-94 90 +26% 80 72.1 +17% 70 +6% 61.4 57.9 60 50 40 EBIT 1) 80 +23% 72-75 70 58.5 60 +20% +14% 48.6 50 42.7 40 30 20 EBT 1) 2) 40 +15% 37-40 35 32.1 +14% 30 28.2 +15% 24.5 25 20 2003 2004 2005 2006 Forecast 1) currency adjusted 2) without valuation result 2006 The Shopping Cen
Slide 24: Contents
Company Shopping Centers Financials Shopping Center Share Appendix Contents The Shopping Center Company 24
Slide 25: Key Data of the Share
Listed since 02.01.2001 Nominal capital €21,999,998.72 Outstanding shares 17,187,499 shares Class of shares Registered shares Dividend proposal 2005 (22.06.2006) €2.00 52W High €58.24 52W Low €42.00 Share price (01.06.2006) €53.78 Market capitalisation €925 million avrg. turnover per day 2006 55,000
Slide 26: Shareholder Structure
Private investors 31% 7,200 shareholders Free float 81% Otto family 19% Germany 73% Institutional investors 50% International 27% Shareholder Structure Status: June 1, 2006 The Shopping Center Company 26
Slide 27: Dividend Policy
dividend shareprice in € in € 2.00 2.00 50.00 1.92 1.92 1.92 1.92 47.45 48.00 1.90 46.00 44.00 1.80 42.00 40.00 38.51 1.70 38.00 36.00 1.60 34.00 34.00 32.00 30.50 31.00 1.50 30.00 2001 2002 2003 2004 2005 dividend year-end closing price Dividend Policy 2005: dividend proposal The Shopping Center Co
Slide 28: Coverage
Coverage The Shopping Center Company 28
Slide 29: Analysts' Consensus
Rating Kursziel/ Ergebnis je Aktie/EPS Dividende je Aktie/DPS EBIT Datum/ in € in € in Mio. € Änderung/ Rating Price target Date Change in € 2006 2007 2008 2006 2007 2008 2006 2007 2008 Bankhaus Lampe 15.05.2006 Buy 60.00 2.22 2.02 n.a. 2.00 2.00 2.10 75.80 80.80 n.a. Daten nicht zur Veröffentlichun
Slide 30: Contents
Company Shopping Centers Financials Shopping Center Share Appendix The Art of Shopping Contents The Shopping Center Company 30
Slide 31: Portfolio-News
City Arkaden Klagenfurt Grand opening March 29, 2006 Stadt-Galerie Hameln Ground-breaking ceremony April 12, 2006 Shopping Etrembières Disposal April 2006 Portfolio-News The Shopping Center Company 31
Slide 32: Liabilities – Maturities
Ø effective interest rate 5.50% more than 10 years up to 1 year 9% 8% more than 5 years 71% 1 to 4 years 22% 5 to 10 years 62% Liabilities – Maturities Status: December 31, 2005 The Shopping Center Company 32
Slide 33: Shopping Centers in Europe
Sweden 335 Netherlands 335 Austria 277 GLA per 1,000 population United Kingdom 230 Denmark 230 Finland 230 France 217 Spain 213 Ø EU 171 Switzerland 159 Italy 143 Germany 140 Czech Republic 132 Poland 111 Hungary 91 Turkey 30 Shopping Centers in Europe Status: 3/2006; Source: Cushman & Wakefield The
Slide 34: Change in the Demand of Space
Space requirements Space requirements Retail outlet in sqm 1990 in sqm 2006 Flexible layouts offer Shoe shop 250 - 400 400 - 800 space for modern retail concepts Sports 450 - 600 1,000 - 3,000 Pharmacy 150 - 200 350 - 800 Perfume 150 - 200 350 - 1,000 Books 250 - 350 600 - 2,000 Consumer electronics
Slide 35: World Cup 2006
Hamburg 8 of 12 host cities are in the catchment area of Phoenix-Center DES-centers Hanover Berlin City-Galerie Allee-Center Gelsenkirchen Rathaus-Center Dortmund City-Arkaden City-Point Cologne Leipzig Forum Altmarkt-Galerie Main-Taunus-Zentrum Frankfurt Kaiserslautern Nuremberg Rhein-Neckar-Zentru
Slide 36: Financial Calendar 2006
07.06. Cheuvreux European Small- & MidCap Conference, London 15.06. Morgan Stanley Property Conference, London 22.06. Annual General Meeting, Hamburg 29.06. WestLB German Properties & Financials Conference, Zurich 11.08. Interim report H1 2006 16.08. Roadshow Vienna, HSBC Trinkaus & Burkhardt 26.09.
Slide 37: Deutsche EuroShop AG Contact
Deutsche EuroShop AG Patrick Kiss Investor & Public Relations Oderfelder Straße 23 D-20149 Hamburg Tel. +49 (40) 41 35 79 - 20 E-Mail: [email protected] Fax +49 (40) 41 35 79 - 29 Web: www.deutsche-euroshop.com ISIN: DE 000 748 020 4 Contact The Shopping Center Company 37
Slide 38: Forward-Looking Statements
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, assu
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