Company Presentation. Mr. Claus-Matthias Böge, CEO. German Equity Forum Frankfurt am Main, 22 November The Art of Shopping

Transcription

1 1 The Art of Shopping Company Presentation Mr. Claus-Matthias Böge, CEO German Equity Forum Frankfurt am Main, 22 November 2005

2 The Art of Shopping Company

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

4 4 At a Glance 15 Centers: 14 in operation 1 in the pipeline Potential through sales-linked rents Participations in 15 shopping centers on high street and in established locations 10 in Germany and one each in Austria, France, Hungary, Italy and Poland Lettable space Retail shops Investment Rents per year Total 556,000 sqm approx. 1, billion 135 million Deutsche EuroShop (CPI-)Indexed minimum rents and participation in sales growth of retail industry 356,000 sqm 1.3 billion 85 million Occupancy rate > 99% Professional center management by external, long-term experienced companies like ECE, the European market leader in this industry

5 5 At a Glance Attractive after-tax dividend yield of currently 4.4% Rating: entire portfolio was given a very good rating Consolidated equity ratio currently 50% (plan: >45%) million FY 2003 FY 2004 Q Q Q FY 2005e Sales EBIT EBT excl. revaluation EBT incl. revaluation Earnings per share ( ) Free cash flow per share ( ) Dividend per share ( ) NAV per share ( )

6 6 Targets Long term net asset value enhancement Main focus on NAV and dividend buy & hold -strategy Stable and attractive dividends Investment-focus: Germany and up to 25% Europe Risk diversification due to a portfolio of shopping centers and diversity of tenants Continuous growth Portfolio expansion by 10% per year by acquisition of new shopping centers by increasing existing amounts of holdings

7 The Art of Shopping Shopping Centers

8 8 Locations in Europe

9 9 Shopping Centers in Germany Location Main-Taunus-Zentrum Rhein-Neckar-Zentrum Altmarkt-Galerie Frankfurt Viernheim Dresden Investment 43.1% 99.8% 50.0% Lettable space sqm 102,000 64,000 43,800 Parking 4,000 3, Number of shops approx. 100 approx. 100 approx. 100 Occupancy rate 100% 100% 99% Catchment area 2.2 m inhabitants 1.2 m inhabitants 1.0 m inhabitants Opening/refurbishm. 1964/Sep /Nov Sep. 2002

10 10 Shopping Centers in Germany Location Phoenix-Center Allee-Center Forum Hamburg Hamm Wetzlar Investment 50.0% 87.7% 65.0% Lettable space sqm 39,000 34,800 34,300 Parking 1,600 1,290 1,700 Number of shops approx. 110 approx. 80 approx. 110 Occupancy rate 96% 100% 100% Catchment area 0.6 m inhabitants 1.0 m inhabitants 0.5 m inhabitants Opening/refurbishm. Sep /Mar Feb. 2005

11 11 Shopping Centers in Germany Location City-Galerie Rathaus-Center City-Point Wolfsburg Dessau Kassel Investment 89.0% 94.9% 40.0% Lettable space sqm 30,000 30,000 29,400 Parking Number of shops rd. 90 approx. 80 approx. 60 Occupancy rate 100% 98% 100% Catchment area 0.6 m inhabitants 0.4 m inhabitants 0.8 m inhabitants Opening/refurbishm. Sep Sep Feb. 2002

12 12 Shopping Centers in Germany? Location City-Arkaden Wuppertal to be announced shortly 16 th Shopping Center Innercity Investment Lettable space sqm Parking Number of shops Occupancy rate Catchment area Opening 72.0% 28, approx % 0.7 m inhabitants Oct Xx.x% Xx,000 X00 approx. X0 X0% 0.x m inhabitants 200x

13 13 Shopping Centers in Europe Location Árkád Galeria Dominikanska City-Arkaden Pécs, Hungary Wroclaw, Poland Klagenfurt, Austria Investment 50.0% 33.3% 50.0% Lettable space sqm 34,200 32,600 30,000 Parking Number of shops approx. 130 approx. 100 approx. 120 Occupancy rate 100% 100% 100% Catchment area 0.5 m inhabitants 1.0 m inhabitants 0.4 m inhabitants Opening March 2006

14 14 Shopping Centers in Europe Location Investment Lettable space sqm Parking Number of shops Occupancy rate Catchment area Opening Centro Commerciale Tuscia Viterbo, Italy 100% 15,200 1,100 approx % 0.3 m inhabitants 1998 Shopping Etrembières Annemasse, France 99.8% (8,000 +) 8,600 1,000 approx % 0.8 m inhabitants 1994

15 15 Shopping Centers Total Domestic International Total Deutsche EuroShop Lettable space sqm 435, , ,000 Parking 16,110 4,720 20,830 Number of shops approx. 930 approx ,370 Occupancy rate* 99% 100% 99% Catchment area 9.0 m inhabitants 3.0 m inhabitants 12.0 m inhabitants * without Klagenfurt

16 16 Our Tenants Well-known tenants

17 17 Tenants Structure Top 10 tenants Low level of dependence on the top 10 tenants Other Tenants Total 74.4% Metro-Group 5.3% 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% Palastbetriebe 1.4% Total 25.6% in % of total rents; not including Klagenfurt and Dessau as at December 31, 2004

18 18 Maturity Distribution of rental contracts* Long-term contracts guarantee rental income 2010 et sqq: 86% 2005: 2% 2006: 4% Weighted maturity > 8 years 2007: 4% 2008: 2% 2009: 2% * as % of rental income not including Klagenfurt and Dessau as at December 31, 2004

19 19 Sector and Retailer Mix Balanced sector and retailer diversification non-foods/ electronics 18% department stores 17% regional retail chains 22% local entrepreneurs 29% food 8% healthcare 5% fashion 47% gastronomy 4 % services 1 % inter-/national retailers 49% * in % of lettable space; not including Klagenfurt and Dessau as at April 30, 2004

20 The Art of Shopping Financials Bilanz 2004

21 21 Summary Q Revenue EBIT adjusted Net finance costs Profit for the period adjusted EPS adjusted 53.3 million 42.9 million million 13.7 million % +8% +32% -18% -9% +41% -9% +41%

22 22 Forecast 2005 million Forecast raised for 2005 Proposed dividend for 2005: increased from 1.92 to 2.00 per share Revenue Q EBIT EBT currency adjusted; without valuation result Q Q

23 23 Investments 2005 Achieved investment plans for 2005 million MTZ, RNZ, Annemasse Dessau New Investment

24 24 Capital increase Capital increase to finance additional growth Completion 10 Nov 2005 number of shares now 17,187,499 (1,562,499 new shares) price: per share gross issue proceeds: approx million shares were placed in Germany 40%, Europe 45%, USA and other 15% WestLB AG: Lead-manager and sole bookrunner Berenberg Bank: Co-manager

25 The Art of Shopping Shopping Center Share

26 26 Key data of the Share MarketCap > 770 million Listed since Nominal capital 21,999, Outstanding shares 17,187,499 Class of shares Registered shares Dividend proposal 2005 ( ) W High W Low Share price ( ) Market capitalisation 772 million avrg. turnover per day ,000 shares Indices MDAX, EPRA, GPR 250, EPIX 30 Prime Standard Prime Standard Frankfurt and Xetra OTC market Berlin-Bremen, Dusseldorf, Hamburg, Munich and Stuttgart ISIN DE Ticker DEQ, Reuters: DEQGn.DE Market makers Close Brothers Seydler, WestLB

27 27 Shareholder Structure Private Investors 41% Germany 82% 7,700 shareholders Free float 81% Institutional Investors 40% Otto family 19% International 18% Status: November 15, 2005

28 28 Trend of the Share Comparison with DAX and EPRA Indexed graph Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 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 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 EPRA Deutsche EuroShop DAX from January 2002 to November 2005

29 29 Dividend policy dividend in share price in Stable and attractive (tax-free) dividends Performance since IPO: +37% 2003: +15% 2004: +20% 2005 y-t-d: +22% dividend year-end closing price 2005: dividend proposal, current share price

30 30 Coverage

31 31 Analysts Consensus Datum/ Date Rating Änderung/ Change Rating Kursziel/ Price target in Ergebnis je Aktie/EPS in Dividende je Aktie/DPS in EBIT in Mio Bankhaus Lampe Kaufen/ Buy Berenberg Bank DZ Bank equinet Hamburger Sparkasse HSBC Trinkaus & Burkhardt HSH Nordbank Kaufen/ Buy Kaufen/ Buy Halten/ Hold Halten/ Hold Übergewichten/ Overweight Halten/ Hold Daten nicht zur Veröffentlichung frei und nicht Bestandteil des Consensus Rating. Data not for public use and not part of the consensus. Daten nicht zur Veröffentlichung frei und nicht Bestandteil des Consensus Rating. Data not for public use and not part of the consensus n.a n.a n.a HypoVereinsbank Outperform n.a n.a Kempen & Co Neutral Sal. Oppenheim Kaufen/ Buy West LB Outperform Durchschnitt/ Average Median Minimum Maximum

32 The Art of Shopping Appendix

33 33 Lease system 5 turnover-linked rent 4 General form of lease contracts for DEStenants all over Europe CPI-linked minimum rent Lease standards: 10 years lease only no break-up option turnover-linked rents minimum rents are CPI-linked, upwards only Ø rent per sqm: Ø turnover per sqm: 4,300 Rent-to-sales-ratio: %

34 34 Liabilities - Maturities Ø effective interest rate 5.66% more than 8 years 65% up to 1 year 1% 1 to 5 years 8% 5 to 8 years 26% more than 5 years 91%

35 35 Revenue Bridge Q Q million Revenue: +18% comparable: +2% =2% Q Udine Pécs, Hamburg and Wetzlar Increase in rents Q

36 36 EBIT Bridge Q Q million EBIT: +8% currency adjusted: +15% =32% Q currency impact Udine Q adj. Increase Q adj. currency impact Q

37 Net Interest Expense Bridge Q Q Net interest expense: -27% million Q interest income interest expenses Pécs, Hamburg and Wetzlar Q

38 38 Profit Bridge Q Q Profit: -9% currency adjusted: +10% million =41% Q currency impact Udine Q adj. Increase Q adj. currency impact Q

39 39 Balance Sheet thousand 30 Sep Dec In/decrease Fixed/non-current assets 1,224,683 1,203,251 21,432 Current assets 146, ,957-20,357 Total assets 1,371,283 1,370,208 1,075 Equity 669, ,412-14,807 Long term debt 628, ,662 31,061 Deferred taxes 57,069 51,676 5,393 Current liabilities 15,886 36,458-20,572 Total liabilities 1,371,283 1,370,208 1,075

40 40 Profit and Loss Account thousand 1 Jan.- 30 Sept Jan.- 30 Sept increase/ decrease Revenue 53,328 45, % Other operating income 1,286 7,718 Expenses -11,677-13,309 Depreciation and amortization EBIT 42,923 39,740 +8% Net interest expense -23,644-18,597 Income from investments 3,623 3,232 Valuation result ,374 Net finance costs -20,848-17,739 EBT 22,075 22,001 0% Taxes -6,377-6,849 Minority interests in earnings -2, Profit for the period 13,665 14,936-9%

41 41 Financial Calendar German Equity Forum, Frankfurt HSBC Real Estate Conference, Frankfurt Annual earnings press conference, Hamburg Interim report Q Annual General Meeting, Hamburg Interim report H Interim report Q

42 42 Contact Deutsche EuroShop AG Patrick Kiss Investor & Public Relations Oderfelder Strasse Hamburg Tel. +49 (40) Fax +49 (40) ISIN: DE

43 43 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 forwardlooking statements and does not assume any obligation to do so.