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DES GB2012 E

Of 34 loans across the Group, credit covenants were agreed with the financing banks on fourteen of these. This includes a total of 18 different covenants on debt service cover ratios (DSCRs), inter- est cover ratios (ICRs), changes in rental income and the loan-to- value ratio (LTV). All conditions were met. Based on the budgeted figures, compliance with the covenants may also be assumed in the current financial year. At the end of February 2013, 13 loans taken out in the past to finance the Main-Taunus-Zentrum were replaced by a new loan in the amount of €220.0 million. Moreover, scheduled repayments amounting to €18.6 million will be made from current cash flow during the 2013 financial year. Over the period from 2014 to 2017, average repayments will be around €18.1 million per year. No loans are due to expire in the next two financial years. In 2015, one loan in the amount of €61.9 million will be due for renewal, and a further three loans amounting to €173.0 million in 2016. The con- vertible bond must be repaid in 2017 if the bond holders have not made use of their conversion rights by then. Short- and long-term financial liabilities totalling €1,657.2 million were recognised in the balance sheet as of the reporting date. The dif- ference between the total sum and the amounts stated here is €7.9 million and relates to deferred interest and repayment obligations that were settled at the beginning of 2013. INVESTMENT ANALYSIS: INVESTMENTS ABOVE PREVIOUS YEAR’S LEVEL Investments made during the 2012 financial year amounted to €198.2 million, compared to €197.0 million in the previous year. The acquisition of the Herold-Center, which was acquired on 31 December 2012 for a total of €185.4 million, accounted for the majority of these investments. In addition, residual work on expan- sions required investments totalling €7.0 million. Ongoing invest- ments in portfolio properties amounted to €5.6 million. LIQUIDITY ANALYSIS: HIGHER LIQUIDITY DUE TO FINANCING The Group’s operating cash flow of €102.8 million (2011: €100.2 mil- lion) comprises the amount generated by the Group for shareholders through the leasing of shopping center floor space after deduction of all costs. It primarily serves to finance the dividends of Deutsche EuroShop AG and payments to third-party shareholders. Cash flow from operating activities amounted to €121.4 million (2011: €103.4 million) and, in addition to operating cash flow, con- tains changes in receivables and other assets as well as other liabilities and provisions. This increase was largely due to the need to create merger-related real estate transfer tax provisions and income tax pro- visions on current earnings. Cash flow from financing activities rose from €92.8 million to €180.0 million. Cash inflows from financial liabilities, amounting to €191.7 million, resulted from the greater utilisation of a credit line and the convertible bond issued during the year under review. Fur- thermore, the capital increase against cash contribution in November led to net issue proceeds in the amount of €66.2 million. Dividends paid to shareholders totalled €56.8 million. Payments to third-party shareholders comprise the purchase price of the shareholdings in the Rathaus-Center Dessau acquired at the beginning of the year and distributions paid out during the year under review. Cash and cash equivalents rose by €103.1 million in the year under review to €167.5 million (2011: €64.4 million). NET ASSETS BALANCE SHEET ANALYSIS The Group’s total assets increased by €323.8 million, from €3,225.1 million to €3,548.9 million. 2012 2011 CHANGE Current assets 183,719 85,348 98,371 Non-current assets 3,365,135 3,139,777 225,358 Current liabilities 247,900 166,982 80,918 Non-current liabilities 1,979,040 1,865,102 113,938 Equity 1,321,914 1,193,041 128,873 3,548,854 3,225,125 323,729 € thousand Total assets GROUP MANAGEMENT REPORT { 130 } DES ANNUAL REPORT 2012 Results of operations, financial position and net assets