• Germany: position strengthened despite negative market trend
• International: Sustained strong growth
• EBITA forecast confirmed

Kirkel – January 10, 2008. According to still preliminary figures, Praktiker Bau- und Heimwerkermärkte Holding AG increased its net consolidated sales by 24.8 percent to 3.95 billion euros during the fiscal year just ended. With this result, the Praktiker Group reached the sales forecast for 2007 of around four billion euros despite difficult conditions on the domestic market. In Germany, sales rose by 25.5 percent to 2.86 billion euros in 2007 as a consequence of the acquisition of Max Bahr. International sales came in at 1.08 billion euros, which is 23.0 percent over last year.

In Germany, the Praktiker brand stood its ground despite a stronger than expected negative market trend and won additional market share in the second half of the year. The VAT increase and an overall weak consumption climate left distinct marks in the general demand for DIY products and in the sales of the Praktiker Group. Like for like, the 2007 sales of the Praktiker brand in Germany came in 3.6 percent lower year-on-year. The rise in sales is thus exclusively attributable to the acquisition of Max Bahr.

The international business developed much better with a sales performance that was more dynamic than in the previous year. This was attributable to 15 new stores that were for the most part opened in the second half of the year as well as to a further enhancement of the sales productivity of existing locations. Net of the changes in selling space, sales grew by 11.4 percent. The international activities thus continued to be the main growth driver in 2007.

At the close of the year, the Praktiker Group operated a total of 425 stores (2006: 341), of which 337 in Germany (2006: 268) and 88 abroad (2006: 73). The growth in Germany is exclusively attributable to the acquisition of Max Bahr (76 stores).

Fourth Quarter: continued difficult market situation in Germany; sustained growth abroad

Net consolidated sales in the Fourth Quarter 2007 increased by 22.1 percent to 904 million euros. In Germany, the 23.5 percent growth in sales to 615 million euros was exclusively attributable to the first-time contribution by Max Bahr. Like for like, the German operations reported a drop in sales of 8.3 percent for the Praktiker brand. Praktiker was not able to disconnect from the negative trend of the German DIY sector, which faced a significant decline in sales, particularly during the second half. This not withstanding, Praktiker has probably done better than the market average. In this context it must be taken into consideration too that Praktiker refrained from additional investments into prices to raise sales, focusing rather on margins and earnings than on sales volume during the Fourth Quarter.

At the international level, a total of six stores were opened during the Fourth Quarter, two in Romania and one each in Greece, Poland and Bulgaria. In addition, Praktiker opened its first store in the Ukraine, which is to be followed by a rapid expansion of the portfolio in this high-growth Eastern European country over the next few years. The sales achieved by the international operations increased by 19.3 percent to 289 million euros during the Fourth Quarter, with a like-for-like increase of 6.3 percent. The growth trend reported by our international operations during the first nine months thus continued unabridged.

EBITA forecast confirmed

Two weeks into the New Year it is not yet possible to accurately state results. In view of the first-time earnings contribution by Max Bahr, the synergies leveraged and the good trend in the international business, the Praktiker Board still considers its EBITA forecast (earnings before interest, tax and goodwill amortization) of around 125 million euros to be within reach. This forecast always referred to operating earnings excluding the effects resulting from the conditions set by the Federal Cartel Office for the approval of the acquisition of Max Bahr. These requirements led to the divestment of two Praktiker stores and one Max Bahr store to regional competitors.

Wolfgang Werner, CEO of Praktiker Bau- und Heimwerkermärkte Holding AG, said: “We achieved a lot in 2007. We accelerated our international growth and invested into 15 new stores. In Germany, we converted 60 stores of the Praktiker portfolio to the new Easy-to-Shop concept, successfully integrated Max Bahr and established it as a new, strong group brand. Moreover, we absorbed the negative effects from the VAT increase and successfully asserted our position during the second half in a strongly declining German market.“

Praktiker will announce the final and complete set of financials for the year 2007 and a first outlook for the current year on April 2, 2008.

Sales in 2007* and Q4 2007*

Store portfolio 2007

Stores	31 Dec 2007	31 Dec 2006	Change
Germany	337	268	69
Praktiker	261	268	-7
Max Bahr	76	0	76
International	88	73	15
Greece	10	8	2
Luxembourg	3	3	0
Poland	20	17	3
Hungary	17	15	2
Turkey	9	8	1
Romania	20	16	4
Bulgaria	8	6	2
Ukraine	1	0	1
Praktiker Group	425	341	84

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