• Sales up 27.1 %, EBITA prior to Federal Cartel Office requirements up 24.4 %
• Germany: Praktiker asserted its position in a declining market
• International: continued dynamic growth
• Sales and earnings forecast for 2007 unchanged

Kirkel – 24 October 2007. Praktiker Bau- und Heimwerkermärkte Holding AG successfully closed the Third Quarter of 2007. Sales and earnings increased as a result of the further integration of Max Bahr and a continuously booming international business.

In Germany, the Praktiker brand managed to escape the industry trend in a strongly declining DIY market as like-for-like sales were maintained at roughly the prior-year level. “Compared against our competitors, we have clearly won additional market share with our price-aggressive strategy“, said the company’s CEO, Wolfgang Werner, at the presentation of the Quarterly Report. Praktiker plans to continue putting further pressure on prices and competition.

Wolfgang Werner: “In our domestic business we have been able to make up for the sluggish development of the Second Quarter“. Abroad, the Praktiker Group continues to grow very dynamically while, on the domestic market, the acquisition of Max Bahr is increasingly bearing fruit and adding considerable financial, structural and strategic flexibility.

Sales and earnings forecast for 2007 unchanged

According to Werner, the positive overall development of business during the first nine months constitutes a solid basis for achieving the forecast for the full fiscal year 2007. According to this forecast, group sales are expected to reach around four billion euros and operative earnings (EBITA) around 125 million euros. As repeatedly mentioned, this figure will be impacted by the one-off expenses resulting from compliance with the Federal Cartel Office requirements for approval of the acquisition of Max Bahr. “At around 10 million euros, however, this one-time effect on earnings is lower than originally anticipated”, said Werner.

Group: sales and earnings increased

Net consolidated sales increased by 27.1 percent (221.0 million euros) to nearly 1,036.5 million euros during the Third Quarter. In the first nine months of the current year, sales of the Praktiker Group thus soared 25.6 percent to 3,041.5 million euros. Since its consolidation in February, the brand Max Bahr has contributed sales of 525.1 million euros. Net of this contribution by the new subsidiary, sales of the Praktiker Group during the period under review rose by 3.9°percent to 2,516.4 million euros.

The earnings situation of the Praktiker Group, too, improved appreciably during the Third Quarter 2007 with EBITA (earnings before interest, tax and amortization of goodwill) coming in at 51.4 million euros before the effects of the Federal Cartel Office requirements. This is 10.1 million euros or 24.4 percent more than in the Third Quarter 2006. For the first nine months of the current fiscal year, Praktiker reports operating earnings before Federal Cartel Office requirements of 100.5 million euros (2006: 87.7 million euros), which corresponds to a 14.6 percent rise. Including the one-off effects resulting from compliance with the Federal Cartel Office requirements – i.e. divestment of three locations – EBITA stands at 90.3 million euros for the first nine months and at 41.2 million euros for the Third Quarter.

Other one-off effects have already been absorbed in the reported earnings. They include expenses for the conversion of 44 Praktiker stores to the Easy-to-Shop concept, which were distributed more or less evenly over the quarters, and expenses for the integration of Max Bahr, which were incurred during the first half.

Earnings per share stepped up further

Net earnings for the first nine months – before Federal Cartel Office requirements and special tax effects – are reported at 68.7 million euros (2006: 66.9 million euros) and for the Third Quarter at 35.4 million euros (2006: 32.3 million euros). Undiluted earnings per share for the first nine months before Federal Cartel Office requirements and special tax effects came in at 1.16 euros (2006: 1.14 euros) and for the Third Quarter at 0.60 euros (2006: 0.55 euros).

Germany: Praktiker asserted its position in a declining market

Despite difficult general market conditions the Praktiker Group further asserted its position on the domestic market in the Third Quarter 2007. Net sales in this segment rose to 738.4 million euros, which is 169.9 million euros or 29.9 percent more than one year earlier. Excluding the contributions from Max Bahr, the sales volume was of around 560 million euros, which corresponds to a slight like-for-like decline of 0.6 percent.

For comparison: the BHB trade association had reported a slump in gross sales in the German DIY market of up to seven percent for the months of July and August. In net terms, this would correspond to a drop of around 10 percent.

Third Quarter EBITA in Germany before Federal Cartel Office requirements stood at 24.2 million euros, which is 3.8 million euros above the same quarter one year earlier. In the Third Quarter, major investments into prices were again necessary.

International: continued dynamic growth

The dynamic growth that had characterized the International segment already during the first half of the year under review also persisted in the Third Quarter with sales being up 20.7 percent. Like-for-like, i.e. excluding the 15 new stores opened within a year’s time, sales rose 9.6 percent. Hence, international sales generated during the first nine months reached a new record high of 793.5 million euros, which is 24.4 percent more than during the same period one year earlier. This growth originated from both, the extension of the selling space available as from improved sales density in the existing stores.

A similarly positive trend was reported in terms of the operating earnings of the international business. They reached 27.2 million euros during the Third Quarter - 30.1 percent more than one year earlier. EBITA of the segment International for the first nine months of 2007 totaled 52.9 million euros, which corresponds to an increase of 19.8 million euros or 59.9 percent over the year-earlier period. The international activities are now contributing around 53 percent to the consolidated operating earnings – at a share in sales of around 26 percent.

More stores, more staff

The acquisition of Max Bahr and the accelerated international expansion also resulted in a distinct growth of the store portfolio and headcount. The group’s selling space as per 30 September 2007 rose from 1.99 million to around 2.68 million square meters as compared to the same date in 2006. The store portfolio consists of 422 stores (2006: 335), of which 81 are located abroad (2006: 66). 76 of the German locations are operated under the Max Bahr brand.

The headcount of the Praktiker Group developed accordingly. As at 30 September 2007, the group had a total workforce of 22,289 employees (full-time equivalents), 28.1 percent more than on the same date one year earlier (17,405). The number of employees in Germany now totals 13,708 (2006: 10,515) and that of the eight foreign subsidiaries 8,581 (2006: 6,890).

* on the basis of a normalized tax rate – excluding effects from corporate tax reform – and prior to effects from the Federal Cartel Office requirements

* on the basis of a normalized tax rate – excluding effects from corporate tax reform – and prior to effects from Federal Cartel Office requirements