Deutsche EuroShop AG · XETR:DEQ
Deutsche EuroShop — Q1-3 2005 Earnings Presentation
25 slides from Deutsche EuroShop's earnings presentation, Nov 10, 2005
Slide 1: Conference Call Interim Report Q1-3 2005
The Art of Shopping Conference Call Interim Report Q1-3 2005 Hamburg, 10 November 2005
Slide 2: Agenda
2 Agenda 1. Interim report Q1-3 2005 2. New acquisition: Rathaus-Center Dessau 3. Details on the capital increase 4. Raise of forecast and dividend 5. Q & A +++ The Shopping Center Company +++
Slide 3: Interim Report Q1-3 2005
3 The Art of Shopping Interim Report Q1-3 Bilanz2005 2004 +++ The Shopping Center Company +++
Slide 4: Summary
4 Summary ! Revenue €53.3 million +18% ! EBIT €42.9 million +8% adjusted +32% ! Net finance costs €-20.8 million -18% ! Profit for the period €13.7 million -9% adjusted +41% ! EPS €0.87 -9% adjusted +41% +++ The Shopping Center Company +++
Slide 5: Revenue Bridge Q1-3 2004 – Q1-3 2005
5 Revenue Bridge Q1-3 2004 – Q1-3 2005 € million 56 +0.9 =2% Revenue: +18% 54 53.3 +9.6 comparable: +2% 52 50 48 46 45.3 44 42 -2.5 40 38 36 Q1-3 2004 Udine Pécs, Increase in Q1-3 2005 +++ The Shopping Center Company +++ Hamburg and rents Wetzlar
Slide 6: EBIT Bridge Q1-3 2004 – Q1-3 2005
6 EBIT Bridge Q1-3 2004 – Q1-3 2005 € million +10.6 =32% 44 43.4 EBIT: +8% 42.9 currency adjusted: +15% -0.5 42 39.7 40 38 -2.1 36 34 32.8 32 -4.8 30 28 Q1-3 currency Udine Q1-3 Increase Q1-3 currency Q1-3 2004 impact 2004 adj. 2005 adj. impact 2005 +++ The Shopping Center Company +++
Slide 7: Net Interest Expense Bridge Q1-3 2004 – Q1-3 2005
7 Net Interest Expense Bridge Q1-3 2004 – Q1-3 2005 interest expenses € million Pécs, Hamburg Q1-3 2004 interest income and Wetzlar Q1-3 2005 0 -2 -4 -6 -8 -10 -12 -14 -16 Net interest expense: -27% -18 -20 -18.6 -0.2 -22 -24 -4.9 +++ The Shopping Center Company +++ -23.7
Slide 8: Profit Bridge Q1-3 2004 – Q1-3 2005
8 Profit Bridge Q1-3 2004 – Q1-3 2005 € million 14.9 +4.1 15 =41% 14.2 Profit: -9% 13.7 14 currency adjusted: +10% 13 -0.5 -2.1 12 11 10.1 10 -2.8 9 8 7 6 5 +++ The Shopping Center Company +++ Q1-3 currency Udine Q1-3 Increase Q1-3 currency Q1-3 2004 impact 2004 adj. 2005 adj. impact 2005
Slide 9: Balance Sheet
9 Balance Sheet 30 Sep. 31 Dec. € thousand 2005 2004 In/decrease Fixed/non-current assets 1,224,683 1,203,251 21,432 Current assets 146,600 166,957 -20,357 Total assets 1,371,283 1,370,208 1,075 Equity 669,605 684,412 -14,807 Long term debt 628,723 597,662 31,061 Deferred taxes 57,069 51,676 5,393 C
Slide 10: Profit and Loss Account
10 Profit and Loss Account 1 Jan.- 1 Jan.- increase/ € thousand 30 Sept. 2005 30 Sept. 2004 decrease Revenue 53,328 45,340 +18% Other operating income 1,286 7,718 Expenses -11,677 -13,309 Depreciation and amortization -14 -9 EBIT 42,923 39,740 +8% Net interest expense -23,644 -18,597 Income from inv
Slide 11: New Acquisition
11 The Art of Shopping New BilanzAcquisition 2004 +++ The Shopping Center Company +++
Slide 12: New Investment Rathaus-Center Dessau
12 Dessau New Investment Rathaus-Center Dessau Investment: 94.4% Initial yield: above 7% Lettable space in sqm: 30,000 Retail / Offices in sqm: 25,000 / 5,000 Rental income 2006(e): €7.7 million Parking: 850 Number of shops: approx. 80 Occupancy rate: 98% Catchment area: 420,000 inhabitants Opening:
Slide 13: Rathaus-Center Dessau
13 Dessau Rathaus-Center Inner city location: in front of the city hall and the market square. +++ The Shopping Center Company +++
Slide 14: Tenant-mix Rathaus-Center
14 Dessau Tenant-mix Rathaus-Center An assortment of well-known national and international tenants +++ The Shopping Center Company +++
Slide 15: Development of tenants' turnover
15 Dessau Development of tenants‘ turnover % 120 115 110 105 Indexed graph without VAT 100 95 90 1996 1997 1998 1999 2000 2001 2002 2003 2004 +++ The Shopping Center Company +++
Slide 16: Maturity Distribution of rental contracts
16 Dessau Maturity Distribution of rental contracts* 2015 et sqq 43.3% Vacancy 1.4% Only 14.3% of rents to be 2005/06 renegotiated until 2010 4.9% 2007/09 2011/14 8% 17.4% 2010 25% +++ The Shopping Center Company +++ * as % of rental income as at October 31, 2005
Slide 17: Rental income 2005-2015 forecast
17 Dessau Rental income* % 140 130 120 Ø rent per sqm: 20.60 € 110 Indexed graph 100 90 80 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 +++ The Shopping Center Company +++ * 2005-2015 forecast
Slide 18: Capital Increase
18 The Art of Shopping Capital Increase Bilanz 2004 +++ The Shopping Center Company +++
Slide 19: Capital increase to finance additional growth
19 Capital increase Capital increase to finance additional growth Decision 9 Nov 2005 ! up to 1,562,499 new shares ! shares only offered to institutional investors in Europe and USA ! share capital is to be increased from €20,000,000.00 by up to €1,999,998.72 to up to €21,999,998.72 ! WestLB AG: Lea
Slide 20: Capital increase placed in full
20 Capital increase Results Capital increase placed in full ! price: €4X.xx per share ! gross issue proceeds: approx. €6X.x million ! number of shares now 17,187,499 (before: 15,625,000) ! marketcap now €7XX million +++ The Shopping Center Company +++
Slide 21: Forecast
21 The Art of Shopping Forecast Bilanz 20042005 +++ The Shopping Center Company +++
Slide 22: Forecast 2005 raised
22 Forecast 2005 € million 75 57.9 61.4 71-72 50 Forecast raised for 2005 25 Q1-3 Revenue 0 Proposed dividend for 2005: increased from 56-58 €1.92 to €2.00 per share 60 48.6 42.7 45 30 Q1-3 15 EBIT 0 30-32 30-32 34 32 24.5 28.2 28.2 30 30 28 24.5 26 24 22 20 20 18 16 14 10 12 Q1-3 10 EBT 8 0642 0 cu
Slide 23: Investments 2005
23 Investments 2005 € million 200 Achieved investment 180 plans for 2005 160 80 New shopping center in Germany by the end of 140 2005, volume of around €80 million 120 100 80 100 60 40 20 20 0 MTZ, RNZ, Dessau New center +++ The Shopping Center Company +++ Annemasse in Germany
Slide 24: Financial Calendar
24 Financial Calendar 2005 10.11. Interim report Q1-3 2005 22.11. German Equity Forum, Frankfurt 2006 13.02. HSBC Real Estate Conference, Frankfurt 20.04. Annual earnings press conference, Hamburg 15.05. Interim report Q1 2006 22.06. Annual General Meeting, Hamburg 11.08. Interim report H1 2006 14.1
Slide 25: Conference Call Interim Report Q1-3 2005
The Art of Shopping Conference Call Interim Report Q1-3 2005 Hamburg, 10 November 2005