Deutsche Euroshop Ag · XETR:DEQ

Deutsche Euroshop — Deutsche Euroshop Ag Akt — FY 2020 Earnings Presentation

27 slides from Deutsche Euroshop's earnings presentation, Mar 24, 2021

1. Slide 1: Conference Call Preliminary Results FY 2020

   CONFERENCE CALL Preliminary Results FY 2020 24 MARCH 2021

2. Slide 2: Update on Business Activities - Summary

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Update on Business Activities - Summary  Operations  Continued “hard” lockdowns with substantial negative impact on frequencies and tenant turnovers for almost all centers  Footfall numbers (February 2021): approx. 34% of normal levels

3. Slide 3: Update on Business Activities - Summary

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Update on Business Activities - Summary  Financials & Liquidity  Solid cash position DES Group: €266m (30 December 2020)  Signing of credit line facility of €150m (until 2024) in January 2020  Negotiations of three loan prolongations

4. Slide 4: Current Regulations in DES' Markets

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Current Regulations in DES’ Markets* Germany  Step-by-step Lockdown – until 18 Apr. 2021  F&B only for take away  Several local regulations depending on the incidence value (<50: limited customers per sqm; <100: click and meet) Austria

5. Slide 5: Corona Impact – Footfall

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Corona Impact – Footfall Development of the daily frequency / average of respective month in the previous year Lockdown I Reopening Limited Operation Lockdown II Average of respective month in the previous year 34% Jan. Feb. Mar. Apr. May

6. Slide 6: Corona Impact – Retail Turnover

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Corona Impact – Retail Turnover Development of retail turnover of centers in Germany 2020 compared to the previous year Q1 Q2 Q3 Q4 -14.2% -11.3% -10.0% -26.4% -40.5% on average -23.1% compared to 2019 -30.0% -50.0% 6 Source: ECE SHOPPING

7. Slide 7: Retail turnover 2020

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Retail turnover 20201 % change rent-to-sales occupancy cost % of % of RETAIL SECTOR in 2020 ratio in % ratio (OCR) in % sales2 space2 DEPARTMENT STORES & HYPERMARKETS -19.2 8.1 11.1 8.9 15.5 FOOD -14.1 8.1 11.0 11.8 7.7 FASHION TEXTILES -

8. Slide 8: Corona Impact – Collection Rates 2020

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Corona Impact – Collection Rates 20201 Q1 2020: 99% Q2 2020: 71% Q3 2020: 96% Q4 2020: 93% 2021: 60% 100% 80% 60% 98% 100% 98% 96% 96% 97% 95% 92% 90% 40% 76% 72% 64% 63% 58% 20% 0% Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. D

9. Slide 9: Tenant Structure: Top 10 Tenants

   CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Tenant Structure: Top 10 Tenants1 2020 2019 LOW LEVEL OF DEPENDENCE ON THE TOP 10 TENANTS H&M 3.3% 3.6% Peek & Cloppenburg 2.5% 2.4% 21% Ceconomy 2.4% 2.6% New Yorker 2.2% 2.4% Deichmann 2.1% 2.1% C&A 2.1% 2.0% Douglas 1.9% 1.8% DM 1.7% 1

10. Slide 10: Maturity Distribution of Rental Contracts

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Maturity Distribution of Rental Contracts1 Long-term contracts base rental income 2021: 9% Weighted maturity 5.0 years 2022: 10%  Occupancy rate: 95.4% 2026 et sqq: 2023: 45% 11% 2024: 12% 2025: 13% 10 1 as % of rental income as at 31 De

11. Slide 11: Valuation – Investment Properties 2020

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Valuation1 – Investment Properties 2020 in € thousand 2020 2019 CHANGE Valuation of Investment Properties influenced by: Revaluation -400,204 -88,560 -311,644  Increase of Net Initial Yields (NIY) for shopping centers due to Revaluation

12. Slide 12: Revenues - Effected by Corona-Legislation and Accounting Change

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Revenues - Effected by Corona-Legislation and Accounting Change REVENUE  Recognition of rental income according to lease contracts in € million 231.51  Decrease in revenues to €224.1m (-3.2%) 225.01 224.1 218.51  Influenced by the situ

13. Slide 13: EBIT - Strong impact from Corona Rent Concessions and Insolvencies

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 EBIT - Strong impact from Corona Rent Concessions and Insolvencies EBIT  EBIT decreased to €161.2m (-18.3%) in € million  Decline due to higher allowances and write of rent receivables 178.6 192.4 199.1 197.5 (€ -27.5m) and the Corona-r

14. Slide 14: Financial Result - Further Improvement

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Financial Result1 - Further Improvement Financial result1  Financial result slightly increased (€+0.7m). in € million  Interest expenses reduced by €5.6m due to favourable refinancings (Rhein-Neckar-Zentrum Viernheim and A10 Center Wild

15. Slide 15: EBT Burdened by the Impact of the Corona-Pandemic

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 EBT1 Burdened by the Impact of the Corona-Pandemic EBT1 in € million 153.3 160.9 163.1  EBT (excl. valuation) significantly below previous year -21.8% 134.5 127.6 (€-35.5m) due lower operating results -21.8%  Interest savings with posit

16. Slide 16: EPRA Earnings

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 EPRA Earnings EPRA earnings  EPRA earnings declined by €33.8m to €124.5m in € million (per share in €)  tax refunds and related interest income as extraordinary and 147.4 158.3 one-off influence factor in the prior year (€9.0m3) 141.3 1

17. Slide 17: Consolidated Result – Dominated by Negative Valuation Result

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Consolidated Result – Dominated by Negative Valuation Result Consolidated profit Consolidated result decreased in total by €-363.8m. in € million (per share in €) The following effects are included in that change: 221.8 €4.11 134.3 112.1

18. Slide 18: Development of Funds From Operations (FFO)

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Development of Funds From Operations (FFO) FFO  FFO of €123.3m declined to previous years level (€149.6m), in € million (per share in €) mainly influenced by corona-related lower revenues and higher 148.1 150.4 149.6 allowances for rent

19. Slide 19: Balance sheet: Solid and Robust Structure

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Balance sheet: Solid and Robust Structure BALANCE SHEET STRUCTURE  Equity ratio stands at a solid 54.6% in € million  LTV decreased to 32.9% (“look-through” 35.8%3) Assets Liabilities due to devaluation of properties 4,558.6 4,558.6  G

20. Slide 20: Net Tangible Assets (EPRA)

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Net Tangible Assets (EPRA) EPRA NTA in € million (per share in €)  EPRA NTA decreased to €37.38 (-11.6%) due to lower property 2,332.6 2,668.4 2,667.5 2,613.4 2,309.7 values  Share price discount to NTA: 53% (22 March 2021) -11.6% EPRA

21. Slide 21: Key Figures

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Key Figures REVENUE EBT (excl. valuation) FFO in € million in € million in € million +2.2%1 -1.3% 1 -1.3%1 225.0 231.5 160.9 163.1 148.1 150.4 149.6 218.5 224.1 153.3 205.1 134.5 127.6 129.9 123.3 2016 2017 2018 2019 2020 2016 2017 2018 2

22. Slide 22: Interest Rate Structure

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Interest Rate Structure1,2 PRINCIPLE AVG. 4.00 INTEREST AMOUNTS SHARE OF INTEREST 3.67 6 LOCKIN DURATION (€ MILLION) TOTAL LOAN RATE 3.50 Up to 1 year 116.0 7.5% 2.82% 4 3.00 2.89 1 to 5 years 2.7 532.5 34.5% 2.85% 2.72 2.47 2 5 to 10 yea

23. Slide 23: Loan Maturities until 2026

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Loan Maturities until 20261,2 END OF FIXED INTEREST PERIODS REGULAR RESPECTIVELY AVG. INTEREST REDEMPTION TOTAL IN € MILLION EXPIRING LOANS RATE PAYMENTS MATURITIES 2021 135.3 4.48% 14.3 149.6 Already fixed: €70.3m, 1.18%, 10y (07/2021) 2

24. Slide 24: Outlook

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Outlook Leasing  continued stabilisation of situation and arrangements with tenants as well as releasing activities as key tasks for the coming months Digital Mall  onboarding of retailers continues, delivery case is tested with a close

25. Slide 25: Update Digital Mall - Onboarding

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Update Digital Mall - Onboarding 87 DIGITAL MALL RETAIL PARTNERS CENTERS LIVE 57 AVAILABLE 780 SHOPS LIVE PRODUCTS 2.8M 25 Source: ECE SHOPPING CENTERS

26. Slide 26: Financial Calendar

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Financial Calendar 2021 23.03. Preliminary Results FY 2020 25.03. Bank of America EMEA Real Estate CEO Conference (virtual) 26.03. Commerzbank German Real Estate Forum (virtual) April Publication of the Annual Report 2020 11.05. Quarterly

27. Slide 27: Contact

    CONFERENCE CALL - PRELIMINARY RESULTS FY 2020 - 24 MARCH 2021 Contact Deutsche EuroShop AG Investor & Public Relations Heegbarg 36 22391 Hamburg Tel. +49 (40) 41 35 79 – 20/ – 22 instagram.com/deutscheeuroshop Fax +49 (40) 41 35 79 – 29 youtube.com/DeutscheEuroShop E-Mail: ir@deutsche-euroshop.com f

Deutsche Euroshop Ag Akt — FY 2020 Earnings Presentation on 6ix