Deutsche EuroShop AG · XETR:DEQ

Deutsche EuroShop — Investor Presentation (March 2005)

34 slides from Deutsche EuroShop's investor presentation, March 2005

  1. Slide 1: Company Presentation March 2005

    Company Presentation March 2005 0

  2. Slide 2: The Company, Shopping Centers, Financials, Share

    1. The Company 2. The Shopping Centers 3. The Financials 4. The Shopping Center Share 1

  3. Slide 3: History

    History 10.10.1997 Incorporation 28.09.2000 Start of business operations 02.01.2001 Going public 15.04.2003 Admission to the Prime Standard 14.07.2003 Admission to the SDAX 02.01.2004 Admission to the EPRA-Index 20.09.2004 Admission to the MDAX 2

  4. Slide 4: Equity Story

    Equity Story ƒ Deutsche EuroShop AG is Germany´s only public company Pure Player that invests solely in shopping centers. ƒ Shopping centers are attractive investments because of ƒ continuously positive development of rents ƒ stable long term growth ƒ prime locations ƒ high quality standards 3

  5. Slide 5: Equity Story: Participations in 14 shopping centers

    Equity Story ƒ Participations in 14 shopping centers on high street and in established 14 Centers locations – nine in Germany and one each in Austria, France, Hungary, Italy and Poland ƒ Total Deutsche EuroShop Lettable space 526,000 m² 327,000 m² Retail shops approx. 1,290 Investment € 1.95 billion

  6. Slide 6: Equity Story: Investment targets and company targets

    Equity Story ƒ Investment targets Main focus on dividend ƒ focus on the optimization of the distributable free cash flow after taxes ƒ “buy & hold”-strategy ƒ long term portfolio value enhancement ƒ Company targets Continuous growth ƒ acquisition of two to three shopping centers per year ƒ establish

  7. Slide 7: Investment Case

    Investment Case ƒ Attractive after-tax dividend yield of currently 4.6% ƒ Net Asset Value per share €43.56 ƒ Rating: entire portfolio was given an “A” rating (i.e.”very good”) ƒ Consolidated equity ratio currently 50% (plan: steadily >45%) ƒ Independent management with many years of experience in sh

  8. Slide 8: The Company, Shopping Centers, Financials, Share

    1. The Company 2. The Shopping Centers 3. The Financials 4. The Shopping Center Share 7

  9. Slide 9: Locations in Europe

    Y=S Deutsche EuroShop AG +++ The Shopping Center Company +++ Poland Hungary Locations in Europe

  10. Slide 10: Shopping Centers in Germany

    Shopping Centers in Germany Location Rhein-Neckar-Center Main-Taunus-Center City-Galerie Viernheim Frankfurt Wolfsburg Investment 92.8% 37.4% 89.0% Lettable space sqm 64,000 102,000 30.000 Parking 3,500 4,000 800 Number of shops approx. 100 approx. 100 approx. 90 Occupancy rate 100% 100% 100% Catchm

  11. Slide 11: Shopping Centers in Germany

    Shopping Centers in Germany Location Altmarkt-Galerie City-Arkaden Allee-Center Dresden Wuppertal Hamm Investment 50.0% 72.0% 87.7% Lettable space sqm 43,800 28,100 34,800 Parking 520 650 1.290 Number of shops Approx. 100 approx. 90 approx. 80 Occupancy rate 99% 100% 100% Catchment area 1.0 m inhabi

  12. Slide 12: Shopping Centers in Germany

    Shopping Centers in Germany Location Phoenix-Center Forum City-Point Hamburg Wetzlar Kassel Investment 50.0% 65.0% 40.0% Lettable space sqm 39,000 34,300 29,400 Parking 1,600 1,700 200 Number of shops approx. 110 approx. 110 approx. 60 Occupancy rate 96% 100% 100% Catchment area 0.6 m inhabitants 0.

  13. Slide 13: Shopping Centers in Europe

    Shopping Centers in Europe Location Centro Commerciale Shopping Etrembières Árkád Tuscia, Viterbo Annemasse Pécs Italy France Hungary Investment 99.9% 92.8% 50.0% Lettable space sqm 15,200 (8,000 +) 8,600 34,200 Parking 1,100 1,000 850 Number of shops approx. 40 approx. 50 approx. 130 Occupancy rate

  14. Slide 14: Shopping Centers in Europe

    Shopping Centers in Europe Location Galeria Dominikanska City-Arkaden Wroclaw Klagenfurt Poland Austria Investment 33.3% 50.0% Lettable space sqm 32,600 30,000 Parking 920 850 Number of shops approx. 100 approx. 120 Occupancy rate 100% 51% Catchment area 1.0 m inhabitants 0.4 m inhabitants Opening/r

  15. Slide 15: Shopping Centers Total

    Shopping Centers Total Total International Domestic Deutsche EuroShop Lettable space sqm 120,600 405,400 526,000 Parking 4,720 15,260 19,980 Number of shops approx. 440 rd. 850 1,290 Occupancy rate* 100% 99% 99% Catchment area 3.0 m inhabitants 8.8 m inhabitants 11.8 m inhabitants * without Klagenfu

  16. Slide 16: Center Management

    Center Management Pro active center management for sustainable development 15

  17. Slide 17: Our Tenants

    Our Tenants Well-known tenants 16

  18. Slide 18: Tenants Structure

    Tenants Structure The 10 largest tenants: in % of total rents Metro-Group 5.3% Low level of dependence on the top 10 tenants Douglas-Group 4.3% Karstadt-Group 3.0% H&M 2.7% P&C 2.1% Engelhorn 1.8% Zara 1.8% New Yorker 1.7% ESPRIT 1.4% Other Tenants Palastbetriebe 1.4% Total 74.4% Total 25.6 % Status

  19. Slide 19: Maturity Distribution of rental contracts

    Maturity Distribution of rental contracts* Long-term contracts guarantee rental income 2010 et sqq: 86% 2005: 2% 2006: 4% 2007: 4% 2008: 2% 2009: 2% * as % of rental income – not including Klagenfurt as at December 31, 2004 18

  20. Slide 20: Branch diversification

    Branch diversification* Balanced branch diversification Non-Foods/ Electronics 18% Departement stores 17% Food 8% Healthcare 5% Gastronomy 4% Fashion 47% Services 1% * in % of lettable space without Klagenfurt and Wetzlar as at December 31, 2004 19

  21. Slide 21: Investment Volume

    Investment Volume The proportionate total investment volume Germany 83% amounts to € 1.2 billion Austria 6% Germany 83% Hungary 3% Abroad 17% France 3% Italy 2% Poland 2% rounding differences in consequence of calculation 20

  22. Slide 22: Assets Structure

    Assets Structure invested equity The invested equity amounts to € 553 million Germany 77% France 6% Austria 5% Germany 77% Italy 5% Abroad 23% Hungary 3% Poland 3% rounding differences in consequence of calculation 21

  23. Slide 23: The Company, Shopping Centers, Financials, Share

    1. The Company 2. The Shopping Centers 3. The Financials 4. The Shopping Center Share 22

  24. Slide 24: Key Figures of the Group: Balance sheet

    Key Figures of the Group Balance sheet in € million 31. Dec. 2003 30. Sep. 2004 Change Total assets 980.7 999.0 +2% Fixed assets 851.8 866.5 +2% Current assets 127.0 132.1 +4% Equity 535.7 503.1 -6% Provisions 27.5 31.9 +16% Liabilities 417.1 464.0 +11% 23

  25. Slide 25: Key Figures of the Group: Income statement

    Key Figures of the Group Income statement in € million 2002 2003 Q3/2003 Q3/2004 Rents 46.5 49.3 36.7 36.8 EBITDA* 37.0 42.0 33.5 38.3 Depreciation 21.6 22.4 16.6 16.4 EBIT 15.4 19.6 16.9 21.9 Net interest -11.4 -14.1 -9.9 -13.7 EBT 4.0 5.5 7.0 8.2 Net profit/loss -2.9 -0.5 1.1 4.1 * including inves

  26. Slide 26: Free Cash Flow

    Free Cash Flow Development in € million 30.0 30 28.0 30.0 24.8 25 Solid growth of free cash flow 20 18.1 15 10 2001 2002 2003 2004(e) (e) = estimated 25

  27. Slide 27: The Company, Shopping Centers, Financials, Share

    1. The Company 2. The Shopping Centers 3. The Financials 4. The Shopping Center Share 26

  28. Slide 28: Key Figures of the Share

    Key Figures of the Share Listed since 02.01.2001 Nominal capital € 20 million Outstanding shares 15,625,000 Class of shares Registered shares Dividend as of 2003 (18.06.2004) € 1.92 52W High € 40.88 52W Low € 32.10 Share price (02.03.2005) 41,36 € MarketCap > €600 million Market capitalization € 646

  29. Slide 29: Trend of the Share in comparison with DAX and EPRA

    Indexed graph 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 EPRA Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Deutsche EuroShop AG Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04

  30. Slide 30: Shareholder Structure

    Shareholder Structure Private Investors Germany 50 % 91 % 6,600 shareholders Free Float 79% Institutional Investors Otto family 29 % 21% International 9% Status: February 24, 2005 29

  31. Slide 31: Coverage

    Y=S Deutsche EuroShop AG Bankhaus Lampe HSBC Trinkaus & Burkhardt €X> u Independent Research +++ The Shopping Center Company +++ Privalbankiors ae goptindel 1590 BERENBERG BANK Gok Berenborg, Gosslor t Co HG Atl HSH NORDBANK 2 KEMPEN & CO Merchant Bank Haspa’ Hamburger Sparkasse HypoVereinsbank /

  32. Slide 32: Financial Calendar

    Financial Calendar 2005 18.04. Year-End Press and Analyst Conference, Hamburg 28.04. Kempen & Co. German Property Event, Frankfurt am Main 10.05. Report on the first quarter 2005 24.05. Sal. Oppenheim Real Estate Conference, London 01.06. Deutsche Bank German Corporate Conference, Frankfurt 02.06. K

  33. Slide 33: Contact

    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 32

  34. Slide 34: Important Notice: Forward-Looking Statements

    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 o

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