• Net sales in fiscal 2005 rose to € 3.03 billion (+3.4 percent)
• Over-proportional rise in EBITA (+31.6 percent)
• Successful extension of international business
• Outlook 2006: Sales and EBITA to increase above the prior-year level

Kirkel, 4 April 2006 – Fiscal 2005 has been a very successful year for Praktiker Bau- und Heimwerkermärkte Holding AG: Consolidated sales rose 3.4 percent to € 3.03 billion (2004: € 2.93 billion), earnings before interest, taxes and amortization (EBITA) climbed by 31.6 percent to € 105.8 million (2004: € 80.4 million). The previous year’s EBITA margin of 2.7 percent was exceeded once again in 2005 and came in at 3.5 percent. The fourth quarter 2005 proved to be particularly positive with sales revenues of € 716.8 million (2004: € 671.5 million) and EBITA of € 23.8 million (2004: € 22.4 million). “The fast and profitable growth, in particular of our international business, contributes to the excellent business financials. The increased efficiency of our German operations, too, is bringing us further ahead and an important reason for margin improvement“, said Praktiker’s CEO, Wolfgang Werner. This positive trend is also reflected in the earnings per share, which improved by more than 22 percent from € 1.08 to € 1.32 on the basis of the combined financials*.

Against the backdrop of this positive development, the Management Board and the Supervisory Board will propose to the Annual General Meeting to pay a dividend in the amount of € 0.45 per share. Related to the net profit of the continued operations, this corresponds to a pay-out ratio of around 34 percent.

To implement Praktiker’s growth strategy, a total of € 86.3 million (2004: € 55.6 million) were invested in fiscal 2005. One focus of the capital expenditure was on the extension of the international activities and the opening of new stores, in particular in the countries Bulgaria and Romania.

Total assets as of 31 December 2005 rose to around € 1.72 billion (2004: € 1.42 billion). The liquid assets came in at € 349.1 million, financial debt stood at € 144.3 million. Thus, the net cash position – i.e. the balance between liquid assets and interest-bearing liabilities – amounted to € 204.8 million (2004: € 30.2 million). Equity climbed from € 631.7 to € 871.0 million. This resulted in an equity ratio of 50.5 percent (2004: 44.5 percent).

The net profit for the year from continued operations on the basis of the combined financials* developed equally well, increasing from € 63.7 million in 2004 to € 77.6 million in 2005. This resulted in a margin improvement from 2.1 to 2.5 percent.

Positive development in Germany and abroad
In our German operations, which account for 74.6 % of consolidated sales, revenues – contrary to the general market trend - rose by around 0.7 percent to € 2.26 billion (2004: € 2.25 billion). EBITA increased over-proportionately by 54.3 percent to € 54.3 million. In the fourth quarter 2005, sales came in at € 503.2 million (plus 3.6 percent). The reasons for this positive trend are the aggressive marketing, the successful placement of Praktiker as the price leader, and the consistent implementation of measures to boost efficiency.

The international share in total sales during the fiscal year under review climbed 12.3 percent to € 769.5 million (2004: € 685.1 million). Earnings abroad were 13.7 percent higher than the previous year and rose to € 51.5 million (2004: € 45.3 million). International sales in the fourth quarter 2005 came in at € 213.6 million and were thus € 15.0 percent above those of the fourth quarter one year earlier (€ 185.8 million). This is mainly attributable to the extension of the store portfolio – mainly in Romania and Bulgaria.

Praktiker’s international operations are thus characterized by a profitable expansion. Praktiker is achieving more than a quarter of its total sales with its stores outside Germany. In particular in Eastern Europe, further growth opportunities have been realized in 2005.

The store network of the Praktiker Group at the end of the year under review comprised 340 locations, of which 275 in Germany and 65 abroad. On balance, this is five more than one year earlier. The increasing internationalization of the Praktiker Group is also reflected in its employee structure: As of 31 December 2005, the group had a headcount of 21,102 (plus 3.7 percent). While the number of employees in Germany dropped from 14,400 to 14,267, abroad it rose from 5,950 to 6,835, i.e. by 14.9 %.

Outlook
The Praktiker Group sees good growth perspectives in Germany and abroad also for the year 2006. “During the current year we will continue to do everything possible to confirm the sustainability of our success“, stressed Werner. Praktiker Bau- und Heimwerkermärkte Holding AG forecasts consolidated sales groth in the lower single-digit percent range while EBITA is again expected to increase above the prior year level.

In Germany, Praktiker will continue to bank on its price and assortment competence, a consistent optimization of its store portfolio as well as a new store concept (easy-to-shop), which is to make shopping not only more inexpensive but also easier and more convenient for the customer. Werner: “We are confident that, with this move, we will be able to win additional market shares on the highly competitive German home improvement and DIY market“.

Praktiker will actively drive its expansion in Eastern Europe: Eleven new store openings are planned for fiscal 2006. Moreover, another growth market is to be opened up: The Ukraine. Praktiker will invest around € 90 million to finance this expansion.

Key financials of Praktiker Bau- und Heimwerkermärkte Holding AG

*Combined Financials
All figures presented on the basis of the income statement relate to the so-called “combined financial results“. For a better comparability of the financials they show the structure of Praktiker Bau- und Heimwerkermärkte Holding AG after its IPO in November 2005 for the full year and the previous years – without the Austrian activities sold to METRO and including cross-divisional work performed by the internal METRO service companies MGB and MIAG. Two newly founded Praktiker companies, Praktiker Group Buying HK Ltd. and Praktiker International AG, took over the latter tasks on 23 November 2005.