HSBC Real Estate Conference. Frankfurt, 27 February 2008

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Transcription:

HSBC Real Estate Conference Frankfurt, 27 February 2008

Contents Company Shopping Centers Financials Shopping Center Share Appendix 2

Equity Story Deutsche EuroShop 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 3

At a Glance 16 shopping centers on high street and in established locations 12 in Germany, 2 in Poland and one each in Austria, Hungary 16 Centers: 14 in operation 2 in the pipeline. Lettable space Retail shops Market value Rents per year Occupancy rate approx. 643,000 sqm approx. 1,660 approx. 2.6 billion 167 million > 99% Professional center management by ECE, the European market leader in this industry 4

Key Figures 120 100 Revenue 92.9 95.7** 100 80 EBIT*** 86.3 EBT excl. revaluation*** 50 45.4 76.0** 40 37.0** 80 60 40 20 57.9 61.4 72.2 +13%* 60 40 20 39.5 49.8 57.5 30 29.2 31.1 21.3 20 +18%* 10 +15%* 0 m 2003 2004 2005 2006 2007 0 m 2003 2004 2005 2006 2007 0 m 2003 2004 2005 2006 2007 EPS Dividend per share NAV per share 3.00 2.50 2.92 2.71** 1.10 1.05 1.05**** 28 26 25.53 26.90** 2.00 1.50 1.00 0.50 0.61 0.89 24 1.55 1.00 23.11 1.00 22 21.84 21.98 0.96 0.96 +45%* +2%* 20 +5%* 0.00 2003 2004 2005 2006 2007 0.90 2003 2004 2005 2006 2007 18 2003 2004 2005 2006 2007 *2003-2008, Compound Annual Growth Rate (CAGR)/**preliminary results/ /***adjusted for one-time proceeds from disposals/****proposal 5

Lease System I 5 4 turnover-linked rent General form of lease contracts for DES-tenants 3 2 1 CPI-linked minimum rent 0 1 2 3 4 5 6 7 8 9 10 years Lease standards: 10 years lease only no break-up option turnover-linked rents minimum rents are CPI-linked, upwards only Participation in sales growth of retail industry 6

Lease System II avg. rent per sqm and year: 250 avg. turnover per sqm and year: 4,700* Rent-to-sales-ratio: 6.5-8.5% weighted maturity of rental contracts: >8 years million 5,0% 92.9 95.7** 100 4,0% 3,0% 2,0% 57.9 1.8% 61.4 2.6% 72.1 2.8% 2.2% 2.4% 75 50 1,0% 0,0% 2003 2004 2005 2006 2007 25 Revenue Rate of turnover-linked rent *avg. German retail: 3,300 / **preliminary results 7

Targets Long term net asset value enhancement buy & hold -strategy Main focus on NAV and dividend Stable and attractive dividends After-tax dividend yield: currently 4.1% Investment-focus: Germany and up to 25% Europe Portfolio expansion by 10% per year Continuous growth by acquisition of new shopping centers by increasing existing amounts of holdings 8

Contents Company Shopping Centers Financials Shopping Center Share Appendix 9

Overview 10

Shopping Centers Germany Location Main-Taunus-Zentrum Frankfurt Rhein-Neckar-Zentrum Viernheim Altmarkt-Galerie Dresden Investment 43.1% 99.9% 50.0% Lettable space sqm 103,400 63,600 44,500 Parking 4,000 3,800 500 Number of shops approx. 100 approx. 100 approx. 100 Occupancy rate 100% 100% 99% Catchment area approx. 2.2 m. inhabitants approx. 1.4 m. inhabitants approx. 1.0 m. inhabitants Opening / refurbishm. 1964 / 2001-2004 1972 / 2000-2003 2002 11

Shopping Centers Germany Location Phoenix-Center Hamburg Allee-Center Hamm Forum Wetzlar Investment 50.0% 87.7% 65.0% Lettable space sqm 39,200 35,100 34,300 Parking 1,600 1,300 1,700 Number of shops approx. 110 approx. 85 approx. 110 Occupancy rate 99% 100% 100% Catchment area approx. 0.6 m. inhabitants approx. 1.0 m. inhabitants approx. 0.5 m. inhabitants Opening / refurbishm. 2004 1992 / 2002-2003 2005 12

Shopping Centers Germany Location Rathaus-Center Dessau City-Galerie Wolfsburg City-Point Kassel Investment 94.9% 89.0% 40.0% Lettable space sqm 30,600 30,000 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. 0.3 m. inhabitants approx. 0.8 m. inhabitants Opening 1995 2001 2002 13

Shopping Centers Germany Location City-Arkaden Wuppertal Stadt-Galerie Hameln Stadtgalerie Passau Investment 72.0% 94.9% 75.0% Lettable space sqm 28,700 25,000 27,200 Parking 650 500 500 Number of shops approx. 85 approx. 100 approx. 90 Occupancy rate 100% 100% approx. 85% Catchment area approx. 0.7 m. inhabitants approx. 0.4 m. inhabitants approx. 0.4 m. inhabitants Opening / refurbishm. 2001 / 2004 March 11, 2008 Autumn 2008 14

Shopping Centers Europe Galeria Bałtycka City Arkaden Árkád Location Gdansk, Poland Klagenfurt, Austria Pécs, Hungary Investment 74.0% 50.0% 50.0% Lettable space sqm 47,600 36,700 35,200 Parking 900 880 850 Number of shops approx. 200 approx. 120 approx. 130 Occupancy rate 100% 100% 100% Catchment area approx. 1.1 m. inhabitants approx. 0.4 m. inhabitants approx. 0.5 m. inhabitants Opening 2007 2006 2004 15

Shopping Centers Europe Location Investment Lettable space sqm Parking Number of shops Occupancy rate Catchment area Opening Galeria Dominikanska Wroclaw, Poland 33.3% 32,800 900 approx. 100 100% approx. 1.3 m. inhabitants 2001 16

Our Tenants Well-known tenants 17

Tenants Structure Top 10 tenants* Metro-Group 5.0% Douglas-Group 4.9% Peek & Cloppenburg 3.0% H & M 2.4% New Yorker 2.1% Zara 2.0% Deichmann 1.9% Engelhorn & Sturm 1.6% dm - Drogeriemarkt 1.4% Karstadt 1.2% total 25.5% Other tenants total 74.5% Low level of dependence on the top 10 tenants *in % of total rents; not including Hameln, Passau and Gdansk as at 31 Dec 2006 18

Maturity Distribution of Rental Contracts* 2012 et sqq: 81% 2008: 1% 2009: 1% 2010: 3% Long-term contracts guarantee rental income 2011: 14% Weighted maturity > 8 years *as % of rental income not including Hameln, Passau and Gdansk as at 31 Dec 2006 19

Sector and Retailer Mix* non-food/electronics 19% department stores 14% food 8% Balanced sector and retailer diversification fashion 47% health & beauty 6% catering 5% services 1% inter-/national retailers 49% local entrepreneurs 29% regional retail chains 22% *in % of lettable space; not including Hameln, Passau and Gdansk as at 31 Dec 2006 20

Contents Company Shopping Centers Financials Shopping Center Share Appendix 21

Key Figures million 01.01.- 31.12.2007* 01.01.- 31.12.2006 +/- Revenue 95.7 92.9 3% EBIT** 76.0 86.3-12% Net finance costs -41.0 EBT**/*** 37.0 36.1 +2% Consolidated profit 93.0 100.3-7% Earnings per share ( ) 2.71 2.92-7% 30.09.2007 31.12.2006 +/- Equity 812.5 796.3 2% Minorities 101.0 101.6-1% Liabilities 858.8 797.2 8% Total assets 1,850.1 1,796.2 3% Equity ratio (%)**** 49.4 50.0 Gearing (%) 102 100 Cash and cash equivalents 63.1 96.9-35% *preliminary results/**adjusted for one-time proceeds from disposals/***excluding measurement gains and losses/****incl. minorities 22

Forecast 2008 Revenue million 120 100 80 60 40 57.9 +6% 61.4 +17% 72.1 +29% 92.9 +3% 95.7 +17% 110-113 CAGR +14% EBIT* 110 90 70 50 30 42.7 +14% 48.6 +20% 57.5 +28% 73.6 +3% 76.0 +20% 90-92 CAGR +16% EBT* / ** 50 40 30 20 24.5 +15% 28.2 +14% 32.1 +12% 36.1 +2% 37.0 +19% 43-45 CAGR +12% 2003 2004 2005 2006 2007*** 2008 *adjusted for one-time proceeds from disposals/**excluding measurement gains and losses/***preliminary results 23

Contents Company Shopping Centers Financials Shopping Center Share Appendix 24

Shareholder Structure 7,500 shareholders Institutional Investors 49% Attfund 6% Germany 66% Free float 81% Otto family 19% Private Investors 26% Other 4% NL 2% UK 3% BE 3% CH 4% US 5% ZA 6% FR 7% Status: 19 Feb 2008 25

Performance dividend in 1.10 1.00 0.90 0.80 28.08 1.05 1.05* 1.00 25.56** 0.96 0.96 0.96 0.96 23.73 23.50 19.26 16.88 15.50 2002 2003 2004 2005 2006 2007 2008 share price in 31.00 29.00 27.00 25.00 23.00 21.00 19.00 17.00 15.00 dividend (paid for the prior year) year-end closing price *probable proposal/**status: 19 Feb 2008 Performance: 5 years : +91.1% = +13.8% p.a. 3 years: +37.2% = +11.1% p.a. 1 year: -13.1% y-t-d: +8.8% 26

Analysts Consensus avg. / in 2007 2008 EBIT (in million) 74.44 90.15 EPS 1.94 2.22 Dividend 1.06 1.12 Price target 29.49 Status: 19 Feb 2008 27

Contents Company Shopping Centers Financials Shopping Center Share Appendix 28

Key Data of the Share Listed since 02.01.2001 Nominal capital 34,374,998 Outstanding shares 34,374,998 Class of shares Registered shares Dividend 2006 (22.06.2007) 1.05 52W High 30.68 52W Low 21.00 Share price (19.02.2008) 25.15 Market capitalisation avg. turnover per day 2007 865 million 144,000 shares Indices MDAX, EPRA, GPR, MSCI Small Cap Official market Prime Standard Frankfurt and XETRA OTC market Berlin-Bremen, Düsseldorf, Hamburg, Hanover, Munich und Stuttgart ISIN DE 000 748 020 4 Ticker Market makers DEQ, Reuters: DEQGn.DE Close Brothers Seydler, WestLB 29

Liabilities Maturities more than 5 years 82% more than 10 years 7% up to 1 year 7% 1 to 5 years 11% Ø effective interest rate 5.5% 5 to 10 years 75% Status: 31 Dec 2006 30

Financial Calendar 2008 27.02. HSBC Trinkaus Real Estate Conference, Frankfurt 27.02. Roadshow Madrid, M.M. Warburg 28.02. Roadshow Lisbon, Bankhaus Lampe 18.04. Annual earnings press conference, Hamburg 21.-24.04. Roadshow USA, Dresdner Kleinwort 21.04. Roadshow Paris, Deutsche Bank 22.04. WestLB Real Estate Day, New York 22.04. Roadshow Zurich, Commerzbank 23.04. Roadshow Frankfurt, Deutsche Bank 24.04. Roadshow London, Berenberg 25.04. Roadshow Dublin, equinet 14.05. Interim report Q1 2008 16.05. Commerzbank Real Estate Conference, Frankfurt 20.05. Roadshow Vienna, equinet 20.05. Roadshow Brussels, DZ Bank 21.05. Roadshow Geneva, UBS 27.05. Roadshow Munich, Sal. Oppenheim 28.05. Roadshow Liechtenstein, Metzler 28.05. Kempen European Property Seminar, Amsterdam 17.06. UniCredit Financials Conference, Stockholm 19.06. General Annual Meeting, Hamburg 14.08. Interim report H1 2008 25.08. Roadshow Copenhagen, Kempen & Co. 04.-05.09 EPRA Annual Conference, Stockholm 17.09. Roadshow London, Lehman Brothers 18.09. Roadshow Paris, MainFirst 23.09. UniCredit German Investment Conference, Munich 06.-07.10. Expo Real, Munich 20.-21.10. Real Estate Share Initiative, Frankfurt 12.11. WestLB Deutschland Conference, Frankfurt 14.11. Interim report Q1-3 2008 31

Contact Deutsche EuroShop AG Patrick Kiss / Nicolas Lissner Investor & Public Relations Oderfelder Straße 23 20149 Hamburg Tel. +49 (40) 41 35 79-20 / -22 Fax +49 (40) 41 35 79-29 E-Mail: ir@deutsche-euroshop.com Web: www.deutsche-euroshop.com 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 forward-looking statements and does not assume any obligation to do so. 32