• Consolidated sales grow by 5.7 per cent to € 815.5 million
• Operating result (EBITA) increases by 10.5 per cent to € 41.3 million
• Germany: sales growth of 1.8 per cent, like-for-like by 4.4 per cent
• International: Ongoing two-digit sales growth (16.0 per cent)
• Outlook for current financial year unchanged: Increase in sales and operating results (EBITA)

Kirkel, 25 October 2006 – Praktiker Bau- und Heimwerkermärkte Holding AG successfully completed the third quarter. Wolfgang Werner, Chief Executive Officer of Praktiker Bau- und Heimwerkermärkte Holding AG, stated: "We have confirmed and even improved on the positive trend of the first half-year."

In the third quarter, consolidated sales increased by 5.7 per cent to € 815.5 million. At the close of the first nine months of the current financial year, Praktiker Bau- und Heimwerkermärkte Holding AG achieved net sales of € 2.42 billion. This represents an increase of 4.5 per cent against the comparable period of the previous year.

Cost control was maintained. Although sales costs increased by 3.8 per cent in the third quarter, this rate was well below sales growth. General administrative costs were even down by 8.4 per cent on the previous year's comparable figure.

Increased sales and cost control led to an improvement of the operating result (EBITA = result before interest, income taxes and goodwill amortization) by 10.5 per cent to € 41.3 million in the third quarter. For the first nine months of the current financial year, Praktiker disclosed an EBITA of 87.7 million. This corresponds to an increase of 6.9 per cent against the comparable period of the previous year.

In the third quarter, earnings per share were € 0.55, which is an improvement of € 0.07 over previous year.

Germany: Sales increase despite reduction in capacity

On the domestic market, Praktiker saw sales rise by 1.8 per cent to € 568.5 million in the third quarter. Like-for-like, this represents an increase of 4.4 per cent, since the sales area has been reduced by 2.4 per cent against last year's period, following the closure of eight stores. Wolfgang Werner: “By all accounts, we are performing better than the industry average."

In Germany, Praktiker achieved an EBITA of € 20.4 million in the third quarter, which is a 0.3 per cent improvement.

International: Ongoing strong growth

In the third quarter, Praktiker experienced pronounced growth of 16.0 per cent on its international markets. Today, Praktiker operates five more stores in Eastern Europe than it did a year ago. But also on a like-for-like basis, sales increased by 8.3 per cent. In Wolfgang Werner’s opinion, "This figure reflects the high dynamic growth on the East European markets.” The international sales markets currently account for around 30 per cent of consolidated sales. This is the highest proportion of foreign sales that Praktiker has recorded in any reporting cycle.

The operating result (EBITA) for the international markets also developed very favourably in the third quarter. It increased by 22.7 per cent to € 20.9 million.

Key financial figures positive

As against the end of 2005, the balance sheet total was up by 11.4 per cent to € 1.9 billion. The principal reason for this increase lies in the issue of a convertible bond totalling € 150 million. The equity ratio is now at 48.2 per cent. At the end of September, the net cash position was clearly above last year’s level and working capital also rose slightly.

Outlook for current financial year unchanged

The third quarter results confirm the assessment of the management of Praktiker Bau- und Heimwerkermärkte Holding AG that financial year 2006 will see low single-digit sales growth and an EBITA above prior year’s level.

* Combined Financials: All figures presented for the third quarter and for the first nine months of 2005 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 the IPO in November 2005 – excluding the divested Austrian activities and including the services of cross-divisional companies MGB and MIAG. The latter services were taken over by two newly founded companies. Praktiker Group Buying HK Ltd., and Praktiker International AG, on 23 November 2005.
** Number of shares 2005 adjusted to match 2006.