OTTO (GMBH & CO KG) 2,000,000,000 Debt Issuance Programme

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1 1 st Supplement pursuant to Art. 16(1) of Directive 2003/71/EC, as amended (the Prospectus Directive) and Art. 13 (1) of the Luxembourg Act (the Luxembourg Act) relating to prospectuses for securities (loi relative aux prospectus pour valeurs mobilières) dated 30 November 2016 (the Supplement) to the Base Prospectus dated 3 June 2016 (the Prospectus) with respect to OTTO (GMBH & CO KG) (Hamburg, Federal Republic of ) 2,000,000,000 Debt Issuance Programme This Supplement has been approved by the Commission de Surveillance du Secteur Financier (the CSSF) of the Grand Duchy of Luxembourg in its capacity as competent authority (the Competent Authority) under the Luxembourg Act for the purposes of the Prospectus Directive. The Issuer has requested the CSSF in its capacity as competent authority under the Luxemburg Act to provide the competent authorities in Austria, The Netherlands and with a certificate of approval attesting that the Supplement has been drawn up in accordance with the Luxembourg Act which implements the Prospectus Directive into Luxembourg law (Notification). The Issuer may request the CSSF to provide competent authorities in additional host Member States within the European Economic Area with a Notification. Right to withdraw In accordance with Article 13 paragraph 2 of the Luxembourg Act, investors who have already agreed to purchase or subscribe for the securities before the Supplement is published have the right, exercisable within two working days after the publication of this Supplement, to withdraw their acceptances, provided that the new factor arose before the final closing of the offer to the public and the delivery of the securities. The final date for the right of withdrawal will be 2 December A withdrawal, if any, of an order must be communicated in writing to the Issuer at its registered office, specified on page 154 of the Prospectus (as amended by this Supplement). Copies of this Supplement together with the Prospectus and all documents which are incorporated therein by reference will be available free of charge from the specified offices of the Fiscal Agent. This Supplement together with the Prospectus and the documents incorporated by reference therein are also available for viewing at

2 The purpose of this Supplement is primarily to include a new risk factor with respect to Otto Group's pension obligations and to update several sections of the Prospectus with respect to a change in the ownership structure of the limited liability capital (Kommanditkapital) of Otto (GmbH & Co KG) (the Issuer). This Supplement is supplemental to, and should be read in conjunction with the Prospectus. Terms defined in the Prospectus have the same meaning when used in this Supplement. The Issuer accepts responsibility for the information contained in this Supplement. To the best of the knowledge of the Issuer, having taken all reasonable care to ensure that such is the case, the information contained in this Supplement is in accordance with the facts and does not omit anything likely to affect its import. To the extent that there is any inconsistency between any statement included in this Supplement and any statement included or incorporated by reference in the Prospectus, the statements in this Supplement will prevail. 1. SUMMARY - Section B - Otto (GmbH & Co KG) - Element B.16 On page 7 of the Prospectus, Element B.16 of the Summary shall be deleted in its entirety and replaced by the following wording: B.16 Controlling interest over the Issuer Limited Partners (Kommanditisten) of the Issuer are OTTO Aktiengesellschaft für Beteiligungen and GSV Aktiengesellschaft für Beteiligungen. These companies directly hold 100% of the limited partnership interests (Kommanditanteile). Beneficiaries of the Issuer are the Otto family and entities controlled by family members, who together hold an interest of more than 98%. 2. SUMMARY - Section D - Risks - Element D.2 The following paragraph shall be added on page 12 of the Prospectus at the end of Element D.2 of the Summary: The Otto Group is exposed to various risks in connection with its defined-benefit pension plans. The amount of its provisions for pension obligations is based on certain actuarial assumptions, which include discount rates, salary trends, pension trends, inflation and staff fluctuation. If these assumptions prove wrong or change over time, this may lead to a substantial increase in the provisions for pension obligations recognised on the Otto Group's balance sheet. This could adversely affect the Otto Group's financial condition and results of operations. In addition to actuarial risks, the Otto Group is exposed to capital market and investment risks with regards to its funded plans. 2

3 3. GERMAN TRANSLATION OF THE SUMMARY - Abschnitt B - Otto (GmbH & Co KG) - Element B.16 On page 18 of the Prospectus, Element B.16 of the German translation of the Summary shall be deleted in its entirety and replaced by the following wording: B.16 Beteiligungen an der Emittentin / Beherrschungsverhältnisse Kommanditisten der Emittentin sind OTTO Aktiengesellschaft für Beteiligungen und GSV Aktiengesellschaft für Beteiligungen. Diese Gesellschaften halten direkt 100 % der Kommanditanteile. Begünstigte der Emittentin sind die Familie Otto und von ihr kontrollierte Einheiten, die zusammen einen Anteil von mehr als 98 % halten. 4. GERMAN TRANSLATION OF THE SUMMARY - Abschnitt D - Risiken - Element D.2 The following paragraph shall be added on page 24 of the Prospectus at the end of Element D.2 of the German translation of the Summary: Die Otto Group ist einer Reihe von Risiken im Zusammenhang mit ihren leistungsorientierten Pensionszusagen ausgesetzt. Die Höhe der Rückstellungen für Pensionsverpflichtungen basiert auf bestimmten versicherungsmathematischen Annahmen, zu denen Rechnungszinsen, Gehaltstrends, Rententrends, Inflation und Fluktuation gehören. Wenn sich diese Annahmen als falsch herausstellen oder sich im Laufe der Zeit ändern, kann dies zu einer deutlichen Erhöhung der Rückstellungen für Pensionen in der Bilanz der Otto Group führen. Neben versicherungsmathematischen Risiken ist die Otto Group bei ihren kapitalgedeckten Versorgungsplänen Kapitalmarkt- und Anlagerisiken ausgesetzt. 5. RISK FACTORS - Risks related to the Otto Group's pension obligations The following risk factor shall be added on page 32 of the Prospectus at the end of the section Risk factors relating to the Issuer and the Otto Group: Risks related to the Otto Group's pension obligations As of 29 February 2016, the Otto Group's provisions for pension obligations amounted to 1,167 million euros. The Otto Group's main defined-benefit pension plans are located in and the UK. Plans in are generally unfunded, while the pension plans in the UK are mostly funded. 3

4 The Otto Group is exposed to various risks in connection with its defined-benefit pension plans. The amount of its provisions for pension obligations is based on certain actuarial assumptions, which include discount rates, salary trends, pension trends, inflation and staff fluctuation. If these assumptions prove wrong or change over time, this may lead to a substantial increase in the provisions for pension obligations recognised on the Otto Group's balance sheet. With the revised IAS 19, which has come into force in 2013, actuarial gains and losses have to be recognised directly in Other Comprehensive Income in the Otto Group's financial statements. As a consequence, changes in actuarial assumptions may lead to considerable volatility in the Otto Group's balance sheet in the form of large shifts between equity and liabilities. In this respect, the Otto Group is particularly exposed to changes in the level of interest rates, which affect the discount factor used to determine pension provisions. In addition to actuarial risks, the Otto Group is exposed to capital market and investment risk with regards to its funded plans. As of 29 February 2016, the Otto Group's plan assets amounted to 590 million euros. 6. DESCRIPTION OF OTTO (GMBH & CO KG) 1.4 OWNERSHIP STRUCTURE OF THE LIMITED LIABILITY CAPITAL (KOMMANDITKAPITAL) OF THE ISSUER On page 102 of the Prospectus, in the section 1. GENERAL INFORMATION ABOUT THE ISSUER, the section 1.4 OWNERSHIP STRUCTURE OF THE LIMITED LIABILITY CAPITAL (KOMMANDITKAPITAL) OF THE ISSUER shall be deleted in its entirety and replaced by the following wording: 1.4 OWNERSHIP STRUCTURE OF THE LIMITED LIABILITY CAPITAL (KOMMANDITKAPITAL) OF THE ISSUER Limited Partners (Kommanditisten) of the Issuer are: OTTO Aktiengesellschaft für Beteiligungen GSV Aktiengesellschaft für Beteiligungen. These companies directly hold 100% of the limited partnership interests (Kommanditanteile). Beneficiaries of the Issuer are the Otto family and entities controlled by family members, who together hold an interest of more than 98%. In the financial year 2014/15, Dr. Michael Otto, the Otto Group's majority shareholder and Chairman of the Supervisory Board, transferred his shares to a non-profit foundation under German civil law (the Foundation). The purpose of the Foundation is to ensure that the Otto Group remains a family company for future generations. 7. DESCRIPTION OF OTTO (GMBH & CO KG) 7.3 GENERAL PARTNERS' MEETING On page 109 of the Prospectus, in the section 7. CORPORATE GOVERNANCE, the section 7.3 GENERAL PARTNERS' MEETING shall be deleted in its entirety and replaced by the following wording: 7.3 GENERAL PARTNERS' MEETING In connection with its management duties, the General Partner is bound by the instructions of the General Partners' Meeting. Resolutions of the General Partners' Meetings of the Issuer are adopted by simple majority of the votes attributable to the limited liability capital (Kommanditkapital), unless otherwise provided for in individual provisions of the partnership 4

5 agreement or other agreements of the partners. There are numerous provisions in the partnership agreement requiring a majority other than the simple majority. Each EUR 1.00 of the capital confers one vote. The current partners are: General Partner (Komplementärin): Verwaltungsgesellschaft Otto mbh (the shares of which are owned by the limited partners (Kommanditisten)) Limited Partners (Kommanditisten): OTTO Aktiengesellschaft für Beteiligungen, Hamburg, and GSV Aktiengesellschaft für Beteiligungen, Hamburg together hold 100% of the limited partnership interests (Kommanditanteile). 8. DESCRIPTION OF OTTO (GMBH & CO KG) 7.5 SUPERVISORY BOARD On page 110 of the Prospectus, in the section 7. CORPORATE GOVERNANCE, the section 7.5 SUPERVISORY BOARD shall be deleted in its entirety and replaced by the following wording: 7.5 SUPERVISORY BOARD The members of the Supervisory Board of the General Partner are as follows: Dr. Michael Otto, Hamburg Chairman, Businessman Karl-Heinz Grussendorf, Hamburg* Deputy Chairman, Chairman of the Group Works Council Annette Adam, Kahl/Main* Deputy Chairwoman of the Works' Council SCHWAB VERSAND GmbH Thomas Armbrust, Reinbek General Manager Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Anita Beermann, Ahrensburg Employee of Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Horst Bergmann, Michelau* Chairman of the Works Counsel Baur Versand (GmbH & Co KG) Olaf Brendel, Hamburg* Chairman of the Works' Council Hermes Fulfilment GmbH Dr. Michael E. Crüsemann, Hamburg General Manager (retired) Dr. Thomas Finne, Hamburg General Manager Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co. Petra Finnern, Jesteburg* Chairwoman of the Works Council EOS Region Anja Marreck, Holzkirchen* Commercial Clerk Heike Lattekamp, Hamburg* Regional Specialist, ver.di Trade Union 5

6 Dr. Wolfgang Linder, Hamburg General Manager (retired) Stefan Najda, Glienecke* Secretary, ver.di Trade Union Alexander Otto, Hamburg Chairman of the Management Board ECE Projektmanagement G.m.b.H. & Co. KG Benjamin Otto, Hamburg Businessman Lars-Uwe Rieck, Hamburg* Regional Specialist, ver.di Trade Union Dr. Winfried Steeger, Hamburg Attorney Sandra Widmaier, Hamburg* Vice President Group Human Resources Otto Group Prof. Dr. Peer Witten, Hamburg Businessman * Employee representative Save as disclosed in this Supplement, there has been no other significant new factor, material mistake or inaccuracy relating to the information included in the Prospectus which is capable of affecting the assessment of the Notes issued under the Programme since the publication of the Prospectus. 6

7 Registered Office of the Issuer Otto (GmbH & Co KG) Werner-Otto-Straße Hamburg Fiscal Agent and Paying Agent Deutsche Bank Aktiengesellschaft Trust & Securities Services Taunusanlage 12 D Frankfurt am Main Luxembourg Listing Agent Deutsche Bank Luxembourg S.A. 2, Boulevard Konrad Adenauer 1115 Luxembourg Luxembourg Arranger Deutsche Bank Aktiengesellschaft Taunusanlage Frankfurt am Main Auditors to the Issuer KPMG AG Wirtschaftsprüfungsgesellschaft Michaelis Quartier Ludwig-Erhard-Str Hamburg Legal Advisers to the Dealers as to German law Linklaters LLP Taunusanlage Frankfurt am Main Bayerische Landesbank Brienner Straße Munich Commerzbank Aktiengesellschaft Kaiserstraße 16 (Kaiserplatz) Frankfurt am Main Dealers Joh. Berenberg, Gossler & Co. KG Niederlassung Frankfurt Bockenheimer Landstraße Frankfurt am Main Deutsche Bank Aktiengesellschaft Taunusanlage 12 D Frankfurt am Main BNP Paribas 10 Harewood Avenue London NW1 6AA United Kingdom DZ BANK AG Deutsche Zentral- Genossenschaftsbank, Frankfurt am Main Platz der Republik Frankfurt am Main 7