Praktiker Bau- und Heimwerkmärkte Holding AG, Kirkel

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In all other countries, moderate development of the store portfolio is planned with the opening of 1 or 2
stores per country anticipated in both 2008 and 2009. As such, the company is pressing ahead with
expansion fast, but also with a sense for the appropriate expansion speed.
In so doing, Praktiker is relying on a store concept comprising two modules. In addition to stores with a
standard size of around 6,500 square metres, a small-format concept of around 4,000 square metres
has been developed 2007 in Greece. This concept is set to be implemented in other countries in the
group’s international segment wherever this is possible and makes sense.
For the years 2008 and 2009, Praktiker forecasts sales growth in its international operations of a
clearly double-digit rate, whereby the larger share of additional sales will be attributable to the new
outlets, as was already the case in 2007. However, Praktiker is also anticipating like-for-like growth in
its existing stores.
Operating earnings reflect rate of expansion
Together with the rise in sales expected to be generated in Praktiker’s international markets in 2008,
operating earnings (EBITA) are also set to increase, whereby particularly existing stores are anticipated
to report enhanced profitability. However, as the number of new openings is expected to exceed
that of the previous year, higher pre-opening expenses and start-up losses will be incurred with the
corresponding negative impact on EBITA. A similar picture is anticipated for 2009 as a comparable
rate of expansion is planned. In total, the EBITA margin is expected to be between 6 and 7 percent.
Enhanced expansion automatically results in a further increase in capital expenditure irrespective of
whether Praktiker is able or not to acquire the ownership of one or more outlets.
Praktiker Group
Moderate increase in consolidated sales expected
The integration of Max Bahr and expansion abroad had lead to an increase in consolidated sales to
just under four billion euros in 2007. The growth anticipated internationally is expected to contribute to
the further rise in sales within the group in 2008 and 2009. The extent to which consolidated sales will
increase depends primarily on how sales develop in the German DIY market. Assuming stable development
in Germany, consolidated could rise at a medium single-digit rate.
All measures aligned to value enhancement
As already was the case in 2007, earnings in 2008 and 2009 will be burdened by expenses incurred
for the conversion of German Praktiker stores to the Easy-to-Shop concept. Other one-off effects are
not visible from today´s perspective, but cannot be ruled out either. The one-off integration costs for
Max Bahr that impacted negatively on 2007 will not be incurred again. The development in operating
earnings (EBITA) will therefore be characterised to a greater extent than in the previous year by the