Value added.

Annual Report 2005
Value added.

AFG Arbonia-Forster-Holding AG:
a leading integrated supplier to the
construction industry
AFG Arbonia-Forster-Holding AG, based in
Arbon (Canton Thurgau), Switzerland, is a lead-
ing integrated supplier to the construction
industry. The company is listed on SWX Swiss
Exchange, and comprises four divisions –
Heating Technology and Sanitary Equipment,
Kitchens and Refrigeration, Steel Technology,
and Windows and Doors – with production fa-
cilities in Switzerland, Germany, and the Czech
Republic. The company operates in more than
80 countries worldwide via around 30 of its
own distribution companies and representatives
and partners.
AFG Arbonia-Forster-Holding AG has built
strong market positions in its home markets,
Switzerland and Germany, through its Arbonia,
Kermi, Prolux, Forster, Piatti, EgoKiefer and
(since 2005) Miele Kitchens brands. It is also
engaged in intensive ongoing efforts to enter
and build new markets, primarily in eastern
Europe, Russia, and the Middle and Far East.
In 2005, AFG Arbonia-Forster-Holding AG
employed approximately 5,000 people, and
recorded sales of CHF 1,123.6 million and
earnings before interest and tax (EBIT) of
CHF 72.8 million.
Sales growth in 2005
+9.5%
New national markets thanks to acquisition
of Miele Kitchens
+50
AFG share price in 2005
+90.7%

Windows and Doors
19.4 %
Steel Technology
12.9 %
Kitchens and
Refrigeration
21.0 %
Key figures and information for investors
Key figures 2005 1) 2004 1) 2003 2) 2002 2)
in CHF million
Net sales 1123.6 1026.6 687.6 686.4
EBITDA 117.9 127.4 92.3 98.3
in % of net sales 10.5% 12.4% 13.4% 14.3%
EBIT 72.8 67.9 34.6 47.9
in % of net sales 6.5% 6.6% 5.0% 7.0%
Group profit 51.5 49.5 20.3 17.8
in % of net sales 4.6% 4.8% 3.0% 2.6%
Total assets 978.0 922.4 689.2 697.4
Equity capital 316.7 279.2 287.1 270.6
in % of total assets 32.4% 30.3% 41.7% 38.8%
Net indebtedness 247.2 244.6 71.4 93.0
Cash flow from operating activities 83.8 30.9 74.4 79.5
Investment 81.1 194.2 37.4 29.8
Headcount (full-time equivalent) 4803 4608 3382 3378
Net sales 2005 3) EBIT 2005 3)
Information for investors 2005 1) 2004 1) 2003 2) 2002 2)
Price of bearer share in CHF on Dec 31 347 182 154 75
Stock market capitalization, bearer shares, in CHF m 4) 437.2 229.3 194.0 94.5
Group profit per bearer share in CHF 29.40 28.24 10.99 9.61
Price/earnings per ratio bearer share in CHF 4) 12.12 6.62 14.01 7.80
Gross dividend per bearer share in CHF 7.00 7.00 2.80 0.00 5)
1) Data from 2004 onwards = IFRS
2) Data up to 2003 = Swiss GAAP FER
Heating Technology
and Sanitary
Equipment
46.7 %
3) Consolidated Divisions – without Corporate Services
4) Calculated on the basis of the price of December 31
Windows and Doors
26.6 %
Steel Technology
14.7 %
Kitchens and
Refrigeration
12.1%
5) In 2002 a par value repayment of CHF 2.80 was made instead of paying a dividend
Heating Technology
and Sanitary
Equipment
46.6 %

in CHF m Net sales 1), 2) in CHF m Cash flow from operating activities
in Mio. CHF Nettoumsätze
1), 2)
and investment 1), 2) in Mio. CHF Nettoumsätze in Mio. CHF 1), 2)
Entwicklung Cash Flow und Investitionen 1), 2) in Mio. CHF Nettoumsätze in Mio. CHF 1), 2)
Entwicklung Cash Flow und Investitionen 1), 2) in Mio. CHF Nettoumsätze in Mio. CHF 1), 2)
Entwicklung Cash Flow und Investitionen 1), 2) in Mio. CHF 1), 2)
Entwicklung Cash Flow und Investitionen
1200 200
1080
960
840
720 720 720
600
480 480 480 80
360 60
240 240 240 40
120 20
in CHF m EBIT and group profit 1), 2) in Mio. CHF 1), 2)
1), 2)
1), 2)
Entwicklung Entwicklung EBIT und Konzerngewinn Average number of employees
100 100 100 5000
90 90 4500
80 80 4000
70 70 3500
60 60 3000
50 50 2500
40 40 2000
30 30 1500
20 20 1000
10 10 500
EBIT Net profit
Cash flow from operating activities Investments
∅-Personalbestand ∅-Personalbestand ∅-Personalbestand ∅-Personalbestand
in CHF m Net indebtedness 1), 2) in Mio. CHF Nettoverschuldung Share price in 2005
1), 2) in Mio. CHF Nettoverschuldung Kursentwicklung 2005
1), 2) in Mio. CHF Nettoverschuldung Kursentwicklung 2005
1), 2) in Mio. CHF Nettoverschuldung Kursentwicklung 2005
1), 2) Kursentwicklung 2005
100 100 100 400
50
50
0 350
–50
–50
100 100 100 300
–150
–200 250
–250
–300 200
–350
95 95 95 96
97 98 98 99 00 01 01 02 02 03 04 05
95 96 97 98 99 00 01 02 03 04 05
95 96
97 98 98 99 00 01 01 02 02 03 04 05
180
160
140
120
100
95 96 97 98 99 00 01 02 02 02 03 04 05
95 96
97 98 99 00 01 02 03 03 03 04 05 05 05
J F M A M J J A S O N D
AFG Arbonia-Forster-Group in CHF SPI

Content
Report Section 3
Financial Section 67
3 Group
3 Milestones 2005
5 Report of the Board of Directors
9 Message of the Chairman of the Board of Directors
13 Organisation
14 AFG Facilities
16 The acquisition of Miele Kitchens
20 Financial Report
22 AFG Brands and Products
24 Divisions
24 Heating Technology and Sanitary Equipment
30 Kitchens and Refrigeration
36 Steel Technology
42 Windows and Doors
48 Corporate Center
52 Environment and Safety
55 Corporate Governance
68 Consolidated Income Statements AFG Arbonia-Forster-Group
111 Report of the group auditors
112 Income Statements AFG Arbonia-Forster-Holding AG
117 Report of the statutory auditors
118 Supplementary Information for Investors
119 History
120 AFG Companies and Adresses
123 Important Dates, Contact

Milestones 2005
Finger on the pulse of the markets
2 3
January — 17–22 January: Forster Profile Systems’ new-look exhibition stand and the inno-
vative Forster fuego light TEGO system developed in collaboration with Dorma receive a
great reception at Bau in Munich, the most important building trade fair in the German-spea-
king world. — 25–29 January: The two kitchen companies Forster and Piatti appear together
for the first time at Switzerland’s most important building trade fair, Swissbau in Basel, and
win a bronze Xaver Award for their attractive exhibition stand design. Windows and doors
manufacturer EgoKiefer also presents a new stand to great public acclaim, underscoring its
technology leadership. — 27 January: The Board of Directors approves Forster Profilsysteme’s
proposal to invest in a heat insulated window and door system, launching a new generation
of profile technology.
March — 15–19 March: At the ISH 2005 in Frankfurt, the world’s biggest bathroom, buil-
ding, energy and air-conditioning technology fair, AFG’s Heating Technology and Sanitary
Equipment Division presents highlights from the Kermi heating technology, Kermi sanitary
and Arbonia product ranges. The new Bagnotherm and Credo II bathroom radiator lines and
the Toca and Toca XP shower stall ranges receive the red dot design award 2005 from the
renowned Design Zentrum Nordrhein Westfalen in Germany.
April — 22 April: At the AGM, AFG shareholders approve a dividend of CHF 7.00 per bearer
share. This payment, more than double the CHF 2.80 distributed the year before, reflects a
sharp gain in the group’s profitability.
September — 1 September: AFG takes over the manufacture and sale of global brand Miele
Kitchens from German company Miele & Cie. KG in Gütersloh. AFG continues operating
Miele’s state-of-the-art kitchen production facilities in Warendorf (North Rhine-Westphalia,
Germany), which employ around 300 people. The acquisition of Miele’s kitchen capacities
makes AFG one of the biggest kitchen manufacturers in Europe. — 16 September: EgoKiefer
AG commissions its new high-tech processing center in Villeneuve (Canton Vaud). Not only
does this move significantly expand capacities and enable more flexible production, but it
underscores the company’s commitment to French-speaking Switzerland.

Milestones 2005
October — 3 October: Forster’s joinery works in Arbon (Canton Thurgau) is integrated with
Piatti’s joinery facility in Dietlikon (Canton Zurich). All staff are kept on within the Kitchens
and Refrigeration Division. — 26 October: The SAP R/3 implementation project in Arbon
(Canton Thurgau) kicks off. The goal of the project is to deliver an integrated IT solution for
the Kitchens and Refrigeration and Steel Technology divisions.
November — 7–11 November: Forster Profilsysteme presents its new heat insulated window
and door system at the French-speaking world’s most important building trade fair, Bâtimat
in Paris, under the Forster unico brand.
December — 2 December: A new subsidiary, AFG Kitchen International Ltd., is founded to
acquire and hold interests in kitchen distribution companies in Switzerland and abroad.
— 12 December: AFG Kitchen International Ltd. founds its first subsidiary and distribution
company, AFG Küchenstudio BeLux GmbH in Strassen (Luxembourg), to buy and sell kitchen
furniture and accessories. — 12 December: AFG invests in the construction of an expanded
transportation center for its two logistics companies, Asta AG and Spedition Gächter AG. The
new center is due to be up and running by mid-2006.

Report of the Board of Directors
Dear Shareholders
4 5
After extraordinary acquisition-driven growth the previous year, 2005 was a period of con-
solidation and reinforcement of our reputation at a high level. Sluggish construction activity
in key markets, signs of which became apparent early in the year under review, slowed busi-
ness, especially in Heating Technology and Sanitary Equipment, our largest division. Despite
the considerable effort and expense required to integrate the previous year’s acquisitions and
restructure and integrate the kitchens business, the group managed to increase sales almost
10 percent. However, profit growth was not quite on this scale owing to sharp rises in pur-
chasing costs and margin pressure. Even so, AFG Arbonia-Forster-Holding AG managed to
maintain organic growth above the market average in all segments, and gain further market
share.
The year under review was also the first time the group derived the full benefit of
its new, cost-efficient and long-term financing strategy, for which the foundations had been
laid the previous year. It was thus possible to increase group profits by around 4 percent to
CHF 51.5 million, despite a significant rise in the cost of materials. This has prompted the
Board of Directors to move that this year’s Annual General Meeting approve a dividend of
CHF 7.00 on bearer shares and CHF 1.40 on registered shares, unchanged from last year.
Innovation makes all the difference
With the exception of the Heating Technology and Sanitary Equipment Division, which suffered
the effects of stagnant building and fitting activity in Germany, all divisions developed
in line with the high expectations. AFG’s Arbonia-Forster-Holding AG dual strategy involves
focusing on the traditional activities and products of a construction industry supplier. At the
same time, it has defined its fields of business in such a way as to ensure that fluctuations
(especially economic swings) are balanced out among divisions with different cycles. This
strategy paid off in 2005. It also became clear that in weak or saturated markets it is the
ability to innovate that makes the crucial competitive difference. Unavoidable personnel
adjustments and innovative products played a key role in compensating for a decline in sales
and earnings in the Heating Technology and Sanitary Equipment Division.
The ability to develop innovative products, coupled with strict cost management,
also contributed to the success of all the other divisions. In this way Steel Technology was able
to continue with successful moves to shift its focus from low-margin products to higheradded-value
applications of its knowledge of materials and processing. It continues to
concentrate its efforts on the automobile industry, an attractive growth market and of Forster
precision steel tubing.
A growing market combined with innovative products developed and successfully
commercialised by EgoKiefer AG (Windows and Doors Division) in recent years enabled this
division to record the best results in its history. EgoKiefer AG was also able to further grow
market share. However, the very competitive environment meant that in some cases margins
came under pressure. Demand for EgoKiefer products had already exceeded available

Report of the Board of Directors
capacities the previous year, prompting the Board of Directors and management to expand
the windows production facility in Villeneuve (Canton Vaud) during the year under review.
Growing demand also necessitated an additional production facility for doors in Altstätten
(Canton St. Gallen) in 2005. The construction of these new facilities was completed in fall
2005, and the additional capacities are already well utilised.
Miele Kitchens: a milestone in the development of AFG
A real breakthrough which resonated throughout the group was the acquisition in fall 2005
of Miele’s kitchen manufacturing capacities. This move rounds off the Kitchens and Refrig-
eration Division’s range with the addition of a world-renowned premium brand. Of strategic
importance for the group is the worldwide distribution network that AFG Arbonia-Forster-
Holding AG acquired along with the Miele Kitchens facility in Warendorf (North Rhine-West-
phalia), Germany. Not only is it suitable as a sales network for AFG’s kitchen and refrigeration
products, but it is a valuable global marketing instrument in the context of the group’s
increasingly important efforts to expand internationally.
The Board of Directors (from left to right):
Dr. Arthur Loepfe, Dr. Edgar Oehler, Dr. Ernst Buob,
Andreas Gühring, Dr. Ulrich Flückiger

Changes in finance and reporting
6 7
Apart from the acquisition of Miele Kitchens on 1 September 2005, by our new subsidiary
Warendorfer Küchen GmbH, 2005 was the first time that all acquisitions from the previous
accounting period were consolidated for the full financial year. At the same time the group
moved over to International Financial Reporting Standards (IFRS). This change, which has
involved a considerable amount of effort and investment, is designed in part to meet the
requirements for listing on the main board of SWX Swiss Exchange. Much more than this,
however, it is an acknowledgement of the increasingly international character of AFG Arbonia-
Forster-Holding AG. Companies wishing to be attractive to international investors as well as
customers must meet IFRS requirements. This was the key consideration behind the Board of
Directors’ decision to undertake the complex and costly switch to IFRS financial reporting.
Otherwise the changeover to IFRS has not had a significant impact on either the income statement
or the balance sheet for 2005. Thanks to IFRS we are now comparable with competitors
and related companies internationally.

Report of the Board of Directors
Confident for the current year
The Board of Directors again anticipates organic growth of 8 to 10 percent for the current
financial year, provided the current market environment is not drastically affected by unfore-
seen events. Given the sustained competitive pressure, which in some cases is likely to
increase, the great challenge will be to increase profitability in line with growth in volumes.
The necessary steps have been taken at all levels to create the basis for doing so. For this
reason the Board of Directors is confident of meeting the sales and earnings targets that have
been set.
We would like to thank our shareholders for the trust they have placed in us and
AFG Arbonia-Forster-Holding AG over the last twelve months. Thanks also go to our custom-
ers for their loyalty, and to our staff for their hard work and dedication to AFG. It was only
through the collaborative efforts of all concerned that we were able to achieve these results
during the year under review.
The Board of Directors of AFG Arbonia-Forster Holding AG

Seeking new shores
Message of the Chairman of the Board of Directors
For the third time in a row since I took responsibility for AFG Arbonia-Forster-Holding AG
I can report on a successful financial year. In 2005 we made further progress in developing
the group in line with our strategy, coming a major step closer to our goal of being a “one
building, one stop provider” among the classic construction industry suppliers.
One of the cornerstones of this strategy is the complementary nature of our product
range. Quality, the ability to innovate and proximity to the market are also part of this strategy.
AFG’s products have always stood out in terms of quality and innovation. And in the last three
years we have given high priority to more effective coverage of existing markets and the penetra-
tion of new ones. In the current international environment, even high-quality, innovative products
cannot sell themselves.
On the importance of brands and labels
Branding plays an increasingly important role in the internationalisation of our business.
Creating a product personality can be a decisive factor in gaining access to certain distribu-
tion channels or getting a good price for our products. Only products with a high degree of
credibility in terms of their quality and origins in the broadest sense have a chance of suc-
ceeding in the market without their price being eroded too seriously.
Seen from this perspective, the acquisition of both Bruno Piatti AG and EgoKiefer AG
did a great deal to establish AFG’s Arbonia-Forster-Holding AG image in the market as a supplier
of quality products. But in 2005 we were also able to seize a unique opportunity with the acqui-
sition of Miele Kitchens. Miele as a company is one of the leading international household equip-
ment brands, and has an outstanding image in terms of quality and innovation. The addition of
Miele Kitchens to the Kitchens and Refrigeration Division has considerably boosted the reputation
of AFG as a whole, reinforcing the market’s perception of the quality of AFG’s product portfolio.
Miele Kitchens will be manufactured by our new subsidiary Warendorfer Küchen GmbH, and
marketed worldwide.
In taking over Miele Kitchens we not only acquired a brand, but gained access to a
global distribution network of enormous importance. We now have a firm foothold in around 50
markets via distribution channels and, in some cases, actual points of sale. This marks an important
– and given that it happened within one year, a unique – step forward in our efforts to internationalise
our business.
8

Message of the Chairman of the Board of Directors
Internationalisation: a necessary move with great potential
Around 90 million people live in our home markets, Switzerland and Germany. In 2005 we
continued to generate around 80 percent of our sales in these two main markets. Their role
as a solid foundation for growth is therefore not in dispute. They continue to represent great
opportunities, but at the same time they show how vulnerable we are. So far we have gener-
ated a mere 20 percent of our sales in other important growth markets which are home to
billions of people: the new EU member states, Russia, the Middle and Far East, North and
South America, Oceania, and northern and southern Africa. We will and must make sustained
efforts to expand and grow our business outside our two home markets. And we have excel-
lent opportunities to do so. The chief motivating factor is surely the enormous market poten-
tial awaiting us in these markets of the future. If we make further acquisitions, in Switzerland
and Germany we will ultimately reach the antitrust limits with certain product groups. This is
not a risk we will face in any other market in the foreseeable future.
This means that the international expansion of our business is crucial from a strategic
point of view, and a key factor in the future of our company. Despite sales of over a billion francs,
in global terms we are still a small player. We have only two alternatives in an environment of
ongoing consolidation on the international markets: either we are swallowed up by a large com-
petitor, or we ourselves become one of those major players. I have always made our intentions
clear: while independence is not a virtue in itself, it is a challenge for anyone with an entrepre-
neurial frame of mind. For this reason we will play an active and independent role in the consoli-
dation and development of the markets – and not as the subsidiary of a much larger company.
Without expanding AFG Arbonia-Forster-Holding AG internationally, however, we
cannot reach this goal. We are under no illusions: our international plans involve a great deal
of hard work. We have to create a proper foundation in personnel and organisational terms,
which means we will have to invest in human resources. There will be massive investment,
particularly in reinforcing sales and distribution, to enable us to successfully exploit the po-
tential of the international markets.
Foundation laid and first steps taken
For some time already we have had branches in some of the eastern European markets that
are most interesting for us. In the last two years we have also gained a foothold in a number
of fascinating growth markets by setting up initial bases in Shanghai, Beijing and Dubai. We
are closely watching developments in the United States, which could also potentially be a very
attractive market for us. In the past, AFG Arbonia-Forster-Holding AG has taken the time to
find the right solution. We have now set our course. To work in foreign markets we need
highly qualified, committed and reliable staff and partners. They must have the ability to
operate in different cultures and markets, show enthusiasm for our products, and display the
pioneering spirit which is absolutely necessary to conquer new markets.

10 11
Finding these people is the greatest challenge we will face in building our busi-
ness outside our two home markets of Switzerland and Germany. Given the importance of
this international expansion for AFG, we have decided to reinforce the Board of Directors
accordingly, and at the next Annual General Meeting will be proposing Paul Witschi for
election as a new member. Over several decades he has been very successful in building up
the Geberit Group’s international operations, and he will be able to give us valuable support
as we develop our foreign business further.
It will not be easy to handle major international acquisitions ourselves. For this
reason, our first priority in pursuing development outside our home markets will be to grow
under our own steam and concentrate on appropriate strategic partnerships.
This means that in the years to come, organic growth will be even more important
than it has been so far. This type of growth takes more time, but it is less risky. In the future we
will continue to gain market share through outstanding performance rather than by trying to buy
market share – which we cannot do in any case. So far we have succeeded with this approach,
even last year when the market environment was in some cases very tough. I am convinced that
we will be able to continue doing so in future.
In the last two financial years, 2004 and 2005, we have substantially strengthened
our market position by means of major acquisitions. We have also addressed weaknesses in
kitchens and heating technology, created clearer management structures, introduced compatible
IT systems across the group, and implemented broad-based and cost-efficient financing measures.
Against this backdrop, and with renewed growth in sales and earnings last year despite the weak
German business, AFG Arbonia-Forster-Holding AG is well equipped to tackle the challenges of
the future, and in particular international expansion. There is still plenty to decide and to be done
to ensure that the group and its staff at all levels are working together in pursuit of this strategy.
Among other things this includes integrating all companies, internal and external communication,
common marketing and a common identity, and exploiting synergy wherever possible. As
far as we can predict these things, the economic environment will work in our favour, especially
now that the outlook is looking brighter in the important German market. Eastern Europe and
the Middle and Far East still appear to be growing, albeit slightly less rapidly.
We have good reason to look to the future with confidence – a future that will tend
to be marked by steady, sustained growth rather than great leaps. Anyone who has followed our
progress over the last few years will know that we are always good for a pleasant surprise. That
will continue to be the case in future.

Message of the Chairman of the Board of Directors
Outlook for 2006
The 2006 financial year has got off to a good start. There is much to suggest that the mood
of investors and consumers is improving. Figures for the first months of the year are encour-
aging. Among other things we have embarked on new activities abroad, founded our own
distribution companies in a number of important countries, opened our own showrooms,
hired new staff, and initiated various marketing measures. We have also decided on moves
to harmonise the marketing and identity of our different divisions and business units. Added
to this, in 2006 we will substantially reinforce our organisation at the group and top manage-
ment level.
I would like to express my warmest personal thanks to you, the shareholders, for your
interest in AFG Arbonia-Forster-Holding AG, your loyalty, and the trust you have placed in the
company’s management. I would also like to cordially thank all our staff, a dedicated team span-
ning national boundaries. Warm thanks also go to our customers all over the world, whose needs
and requirements spur us on to ever greater achievement.
Dr. Edgar Oehler
Chairman of the Board of Directors and CEO

AFG Arbonia-Forster-Holding AG
Dr. Edgar Oehler*, Chairman and CEO
Corporate Center Human Resources, Communications, Legal, Real Estate,
Strategic Purchasing, Project Management, Transport and Logistics
Dr. Stefan Holenstein
Heating Technology
and Sanitary
Equipment
Knut Bartsch*
Arbonia
Kermi
Prolux
Kitchens and
Refrigeration
N.N.
Forster
Miele Kitchens
Piatti
Forster Kitchens
Daniel Gobbo
Forster Refrigeration
Daniel Gobbo
Miele Kitchens
Kerstin Loeser
Herbert Rosenzweig
Dr. Uwe Steinmeyer
Piatti Kitchens
Organisation
Organisational structure
Bruno Bernhardsgrütter
Steel Technology
Dr. Christian Mayer
Gabriele De Nardi
Forster
Windows and Doors
Thomas Gerosa*
EgoKiefer
Finance, Controlling
and Reporting
Felix Bodmer*
Information
Technology
* Members of Group
Management
Group Management (from left to right):
12 13
Dr. Stefan Holenstein, Felix Bodmer, Dr. Edgar Oehler,
Thomas Gerosa, Knut Bartsch

Europe
Austria
Baltic states
Belgium
Bosnia and Herzegovina
Bulgaria
Byelorussia
Croatia
Cyprus
Czech Republic
Denmark
Germany
Finland
France
Georgia
Great Britain
Greece
Hungary
Ireland
Island
Italy
Luxemburg
Malta
Moldavia
Netherlands
Norway
Poland
Portugal
Principality of
Liechtenstein
Romania
Russia
Serbia and Montenegro
Sweden
Switzerland
Slovakia
Slovenia
Spain
Turkey
Ukraine
Distribution facilities worldwide, production facilities in Europe
America
Chile
Guadeloupe
Canada
Mexico
USA
Africa
Egypt
South Africa
Far and Middle East
Armenia
Bahrain
Dubai
Iran
Israel
Jordan
Kazakhstan
Kuwait
Lebanon
Qatar
Saudi Arabia
Syria
United Arab Emirates
Far East
China
Hong Kong
Japan
Korea
Mongolia
Singapore
Taiwan
Oceania
Australia
New Zealand
Plattling (Bavaria), Germany
Arbonia, Kermi, Prolux,
1600 employees
Dietlikon ZH, Switzerland
Piatti, 350 employees
Villeneuve VD,
Switzerland
EgoKiefer, 100 employees

Arbon TG, Switzerland
(Romanshornerstrasse and Zelgstrasse)
Forster Profiles, Forster Refrigeration,
300 employees
Arbon TG, Switzerland
(Egnacherstrasse and Industriestrasse)
Arbonia, Kermi, Prolux, Forster Kitchens,
Forster Steel Technology, Asta, Gächter,
800 employees
Altstätten SG, Switzerland
EgoKiefer AG, 900 employees
Riesa (Sachsen), Germany
Arbonia, Kermi, Prolux,
300 employees
Strˇíbro, Czech Republic
Arbonia, Kermi, Prolux,
900 employees
14 15
Warendorf (North Rhine Westphalia), Germany
Miele Kitchen, 300 employees

F12 program in high-gloss synthetic
material, color 470 (gloss white) with
strip handles (top).
Precise manufacture of panels in gloss
synthetic material. A blue protective
film is applied to the surface of the
high-quality synthetic panel (bottom).
The acquisition of Miele Kitchens
16 17
“Quality, streamlined design and an array
of impressive functional advantages.”
“For many years my passion has been designing individual kitchens.
I have created an ideal working environment for myself in an old electricity works.
I can rely on the consistently high quality of service and partnership from the
people at Warendorfer Küchen GmbH.”
Olaf Gatzke (42), “Expert in dream kitchens” (Germany), www.miele-gatzke.de

The acquisition of Miele Kitchens
Entering the premium segment and
a broader international market
On 1 September 2005, AFG Arbonia-Forster-Holding AG acquired the Miele Kitchens production and
distribution business from Miele & Cie. KG, a German company based in Gütersloh. The unit, based in
Warendorf in the German Westphalia region, manufactures high-end, design-oriented kitchens,
which are marketed under the brand “Miele Die Küche” (in German-speaking countries). The acquisition
of Miele Kitchens gives the Kitchens and Refrigeration Division access to the top end of the
kitchen manufacturing market, and enables AFG Arbonia-Forster-Holding AG to embark on a key
strategic process of internationalisation. Miele Kitchens generates annual sales of around EUR 33 million,
around 60 % of which comes from outside the German market.
With AFG Arbonia-Forster-Holding AG’s takeover of Miele Kitchens on 1 September
2005, a unit of secondary importance for the Miele Group has advanced to become one of
AFG Arbonia-Forster-Holding AG’s core businesses. Following the acquisition, the kitchen
manufacturing unit was spun off from the Miele Group and integrated into AFG Arbonia-
Forster-Holding AG as part of its Kitchens and Refrigeration Division. All 268 employees were
kept on.
Warendorfer Küchen GmbH manufactures premium segment kitchen fittings featuring
high-quality materials, exclusive design and outstanding ease of use. Miele Kitchens
and the “Miele Die Küche” brand (used in German-speaking countries) ideally complement
the group’s existing kitchen range marketed under the Forster and Piatti brands. The acquisition
of Miele Kitchens marks another important step towards AFG Arbonia-Forster-Holding
AG’s goal of becoming a leading international supplier of kitchens to the building trade, able
to offer a comprehensive range of products and services under the “one building – one stop”
banner.
The acquisition gives the division specific know-how in the industrial manufacture
of high-quality kitchens and access to production capacities that, depending on the order
situation, can in future also be used for the manufacture of Forster and Piatti kitchens.
Strong in Europe
Miele Kitchens’ largest single market is Germany, which accounts for almost 40 % of sales.
More than 60 % of the unit’s production is exported to countries outside Germany. Its core
markets are the UK, Portugal, Spain, Austria, Greece, and the Benelux countries. Since the
acquisition by AFG Arbonia-Forster-Holding AG, the development of Warendorfer Küchen
GmbH’s sales has been stable. While sales in Germany have declined slightly reflecting a weak
market, export sales have increased, thanks in particular to wholesale business. Membership
of the AFG Arbonia-Forster-Group, whose Kitchens and Refrigeration Division is already one
of the leading manufacturers of kitchens in Europe, will have a positive impact on Miele
Kitchens sales.

Successful debut at the A30-Küchenmeile
18 1
In September 2005, AFG Arbonia-Forster-Holding AG joined forces with Miele Kitchens to
present their new offerings at A30-Küchenmeile, a marketing initiative organised by German
kitchen manufacturers to showcase their products and services. New products with high-gloss
finishes and new models in wood and synthetics were very well received by trade partners.
Warendorfer Küchen GmbH has now joined the A30-Küchenmeile alliance.
Outlook: New distribution channels for new products
In the short financial year from 1 September to 31 December 2005, the foundation was laid
to serve customers directly in markets such as Germany, Austria, the Benelux states, France
and Japan in 2006. Wherever appropriate in light of specific national or regional circum-
stances, in the future Miele Kitchens will continue to be marketed in cooperation with local
Miele distribution companies. In 2006, Miele Kitchens will enter two new markets. A new
representative office will be set up in Dubai, and the first point of sale for Miele Kitchens will
be opened in Switzerland in the new AFG kitchen center in Chur (Canton Graubunden).
The trendsetting Eurocucina industry fair in Milan in April 2006 will see the pre-
sentation of more innovations underscoring Miele Kitchens as a premium brand in tandem
with AFG Arbonia-Forster-Holding AG’s proven kitchen range.

Financial Report
First financial statements under IFRS in 2005
With the 2005 financial statements, AFG Arbonia-Forster-Holding AG has reported for the first time
in accordance with International Financial Reporting Standards (IFRS). While the transition had only a
marginal influence on 2005 results, it had a significant impact on the results of the previous year that
was characterised by acquisitions.
In the 2005 financial year, AFG Arbonia-Forster-Holding AG (AFG) saw net revenues
grow by 9.4% to CHF 1,123.6 million (from CHF 1,026.6 million the previous year). Adjusted for
acquisitions, organic growth came to 2.7%, with the AFG Group gaining market share in all segments
despite predominantly sluggish construction activity.
When comparing the income statement for the year under review with the previous
year’s, it should be remembered that this was the first time EgoKiefer AG and Bruno Piatti AG were
consolidated within AFG for the full twelve months (in 2004 they were consolidated for only eight
and eleven months respectively). Warendorfer Küchen GmbH was consolidated with effect on the
date of its takeover, 1 September 2005. The previous year’s figures were also adjusted with regard to
the first-time adoption of IFRS.
Lower depreciation and optimised financing structure
In 2005, the cost of materials increased from 42.6% to 46.6% of net revenues on increases in the
price of raw materials such as steel, aluminum and crude oil. Particularly in Germany, growth in vol-
umes was not sufficient for growing contribution margins to offset the increased cost of materials.
This was reflected in EBITDA, which at CHF 117.9 million fell short of the previous year’s record CHF
127.4 million. The fact that EBIT nevertheless came in higher than the previous year at CHF 72.8 mil-
lion versus CHF 67.9 million is due to much lower depreciation. There was a decline in amortisation
on intangible assets resulting from the purchase price allocation on the first-time consolidation. And
at the same time, depreciation on companies acquired in 2004 was lower.
The difference in financial income in 2005 is primarily due to the release of negative
goodwill from the acquisition of Bruno Piatti AG booked in 2004. The situation with regard to finan-
cial expenses improved thanks to new long-term external financing measures (a bond issue and a
USPP) completed in 2004. The development of income tax expenses was also gratifying last financial
year. Although it was not possible to deduct major loss carryforwards, the effective tax rate declined
to 18.0% from 18.6% the previous year. This enabled AFG Arbonia-Forster-Holding AG to again im-
prove its results, with an increase of corporate profit to CHF 51.5 million (from CHF 49.5 million the
previous year).
Continuity in balance sheet and cash flow statement
There was little change in the 2005 group balance sheet by comparison with the previous year. A
year-on-year increase in total assets to CHF 978.0 million from CHF 922.4 million was due almost
entirely to the acquisition of Miele Kitchens. This takeover was also one of the factors behind an
increase in goodwill. Despite the addition of Miele Kitchens and the higher average price of steel and
other raw materials, there was a substantial reduction (especially in volume terms) in inventories.

20 21
The consolidated cash flow statement for the 2005 financial year shows a CHF 9.4
million decline in liquid funds versus an increase of CHF +25.3 million the previous year. This
was due to the price paid to acquire Miele Kitchens, which was financed entirely with inter-
nally generated funds, and to the fact that pension fund premiums for the Arbon-based
companies had to be paid twice in 2005 owing to a contractual change.
Transition to IFRS has no major impact on corporate profit
The 2005 financial statements are the first time AFG Arbonia-Forster-Holding AG has reported in
accordance with International Financial Reporting Standards (IFRS). The group financial statements
contain detailed notes and comments on the reconciliations necessary to restate the 2004 accounts
under IFRS. While the move to IFRS had no substantial impact on 2005 results, there are one-time
effects for 2004 because of the acquisitions that took place that year. However, these cancel each
other out more or less completely at the corporate profit level.
Balance sheet reconciliations at 1 January 2004 and 31 December 2004, include the
following changes: The acquisition of EgoKiefer AG resulted in goodwill of CHF 33.2 million. Because
of purchase price allocations for the companies acquired in 2004, a net CHF 24.2 million in intangible
assets was identified. A valuation of the market value of the land and buildings used for operational
purposes (including the companies acquired in 2004) by external assessors led to a net adjustment of
CHF –31.5 million at 31 December 2004. These changes to the balance sheet do not have a significant
influence on the consolidated income statements for 2005 and subsequent years, with higher amortisation
from intangible assets offset by lower depreciation on buildings used for operational purposes.
As things stand at the moment, there is no impairment of goodwill necessary.
Outlook
Following successful efforts to secure long-term funding in 2004 and the transition to IFRS in
2005, from a financial point of view the current year will be shaped by ongoing optimisation
efforts, particularly in terms of the group’s (reporting) processes, organisation, systems, current
assets and expenses. In light of changes in the law that will take effect on 1 July 2007,
AFG will set up an adequate risk management system and expand its internal control
system.

Portfolio
Heating Technology and Sanitary Equipment Kitchens and Refrigeration
Brands
Products
Radiators Radiators
Markets
34 countries
Shower stalls
Surface heating
Steel service center
including Switzerland and the Principality of Liechtenstein
Materials
Steel Steel
Comments
Glass
Aluminum
Synthetics
Radiators Steel kitchens
Steel fittings
Switzerland
Principality of Liechtenstein
Italy
Steel Steel
Stainless steel
Radiators and shower screens in more than 2000 RAL colors More than 2000 RAL/
Production sites
CH-Arbon
DE-Plattling
DE-Riesa
CZ-Strˇíbro
Headcount
CH-Arbon
DE-Plattling
DE-Riesa
CZ-Strˇíbro
AFG Brands and Products
CH-Arbon
DE-Plattling
DE-Riesa
CZ-Strˇíbro
2619 886
NCS colors
Built-in refrigerators
Switzerland
Principality of Liechtenstein
Germany
Steel
Synthetics
Aluminum
More than 2000 RAL/
NCS colors,
only specialist OEM
for Swiss norm
CH-Arbon CH-Arbon
One building, one stop: AFG Arbonia-Forster-Holding AG’s winning strategy
AFG Arbonia-Forster-Holding AG is a leading integrated supplier to the construction industry,
specialising in segments that reward outstanding innovation and responsiveness with robust
margins and exceptional long-term growth potential. The group manufactures complemen-
tary products and systems in four divisions – Heating Technology and Sanitary Equipment,
Kitchens and Refrigeration, Windows and Doors, and Steel Technology – which are offered

Kitchens Kitchens
50 countries
including Switzerland and the
Principality of Liechtenstein
Syntetics
Stainless steel
Veneer
Four Coating systems
More than 2000 RAL/NCS
colors, lower units
in 18 different heights
Wall units
Switzerland
Principality of Liechtenstein
Real wood
Synthetic resin
Laminate
More than 2000
RAL/NCS colors
Steel Technology Windows and Doors
Precision steel tubing Profile systems for:
18 countries
including Switzerland and the
Principality of Liechtenstein
Steel Steel
Brilliant surfaces
(Ra max. 0.2 µm);
manufactured to tolerances
of ± 0.02 mm
Windows, Doors and Facades
44 countries
including Switzerland and the
Principality of Liechtenstein
Stainless steel
Certified for fire and smoke
protection purposes in more
than 20 countries
Windows
Doors
Switzerland
22 23
Principality of Liechtenstein
Synthetics
Steel
Wood
Aluminum
Heat insulating glass for energy
savings of more than 70%.
Manufactures and delivers
1300 windows a day
DE-Warendorf CH-Dietlikon CH-Arbon CH-Arbon CH-Altstätten
315 871
CH-Villeneuve
as an integrated range in line with its strategy of “one building, one stop.” Using its home
markets in Switzerland and Germany as a base, AFG Arbonia-Forster-Holding AG is striving
to expand internationally into promising markets. To ensure customers high quality through-
out, the group is vertically integrated, with in-house capacities right along the value chain
from R&D and production to sales and marketing.

Kermi shower stall, Toca model
(top left).
Arbonia heated towel rack, Bagno-
therm BTV model (top right).
Pioneering radiator manufacturing
technology is a prerequisite for
progress and success, in tandem
with the highest possible degree of
rationalization and efficiency,
consistently high levels of quality,
and state-of-the-art production
lines. Here you see the production
line for Karotherm bathroom
radiators at the Arbon (Canton
Thurgau) facility (bottom).
Heating Technology and Sanitary Equipment Division
“The word ‘impossible’ isn’t really
in our vocabulary.”
“We’re a large heating specialist, and are well known for our ability to deliver
appropriate heating solutions for even the most exceptional needs.
Arbonia is just the right partner for us, in terms of both the variety of its range
and its flexibility.”
Andreas Müller (34), CEO of Alois Müller GmbH, Memmingen (Germany),
www.heizungsbau-mueller.com
24 25

Heating Technology and Sanitary Equipment Division
Division consolidates market position in Europe
Through its Heating Technology and Sanitary Equipment Division, AFG Arbonia-Forster-Holding AG is one of Europe’s
leading providers of radiators, surface heating systems and shower stalls. The division offers a comprehensive range of
products in the heating and shower screen segments under the Arbonia, Kermi and Prolux brands. The division’s production
facilities are located in Germany, Switzerland and the Czech Republic. In addition to its home markets, Germany and
Switzerland, the division is also present in France, the UK, Austria, Poland and the Czech Republic via sales and distribution
companies. Representative offices were opened in the promising Chinese and central Asian markets in the year 2005. The
pillars of the division’s philosophy are systematic orientation to the needs of customers and the market, and constant
development of the product portfolio through innovation.
With few exceptions, the Heating Technology and Sanitary Equipment Division’s markets
were lackluster in 2005. Even so, the division successfully maintained its position in the Euro-
pean market to turn in an operating profit (EBIT) of CHF 35.7 million.
Thanks to significant investment aimed at strengthening its innovation leadership
and boosting productivity and flexibility, the division is fully equipped to meet rising demand
and further consolidate its market position. In light of declining sales and further efforts to
increase efficiency, the workforce was reduced from 2,711 to 2,619 during the year under
review.
The Heating Technology and Sanitary Equipment Division was able to maintain or
strengthen its position in most markets in 2005. The generally difficult economic environ-
ment, and in particular the persistent weakness of the European residential construction
business, depressed demand and slowed sales – although this weaker demand was in part
the market’s response to price hikes necessitated by increases in steel, energy and transporta-
tion costs.
Divergent market developments
While the division profited from healthy residential construction activity in Switzerland, its
most important market, Germany – and in particular the German construction industry – was
affected by an unfavorable economic and political framework and very subdued capital and
consumer spending. Added to this, 2005 no longer saw the investment in residential con-
struction witnessed in 2004 in anticipation of a reduction in the German homeowner’s tax
deduction. A similar preemptive effect also had a negative impact on business in Poland:
alongside generally slow building activity, developments there were influenced by an increase
in value-added tax on building materials implemented during 2004, which prompted many
people to bring forward their investment plans.
Declines in the German and Polish markets were offset to some extent by intensive
efforts to make the division’s business more international. For example, there were positive
developments in sales in Russia and other former Soviet states. In this region the division has
been quick to introduce distribution strategies geared to long-term success (which include
the involvement of strong local trading partners), which in combination with a portfolio of

26 27
market-oriented products have resulted in gratifying market penetration and growing brand
awareness. More intense marketing efforts have also had a positive impact on business in
France and Italy.
Further milestones are the division’s entry into the Hungarian and Romanian mar-
kets, assuring it a foothold in two young, emerging economies. In China the central govern-
ment is currently introducing more stringent financing requirements in an effort to prevent
the construction sector from overheating. This has significantly slowed growth in residential
construction, which has also had an impact on the division’s business there. The division has
further expanded its sales organisation in China to enable it to participate in the future
growth of this market.
Innovations from the
division in in 2005 met
with gratifying and
widespread approval.
Innovation a major source of impetus
Regardless of swings in the economy, AFG Arbonia-Forster-Holding AG is systematically
geared to the needs and requirements of its customers. Innovations introduced by the Heat-
ing Technology and Sanitary Equipment Division in 2005 met with gratifying and widespread
approval. In particular, the patented principle underlying the new Therm X2 flat radiator,
which saves energy while at the same time offering greater comfort, illustrates the division’s
ability to spot market opportunities early on and exploit them capably and expertly.
In surface heating, the division took its full-range strategy a step further by enter-
ing the wall heating and surface cooling segments. And last year the Heating Technology and
Sanitary Equipment Division once again demonstrated its design expertise in impressive fash-
ion: Its new Bagnotherm and Credo II bathroom radiator lines and its Toca and Toca XP
shower stall ranges were not only praised in the highest terms by customers, but also received
the red dot design award 2005 from the renowned Design Zentrum Nordrhein-Westfalen
(Sachsen) in one of the biggest design competitions in the world. In
2005, the division underscored its innovation leadership in shower stalls
with KermiEXTRA, a concept that sets a milestone in terms of individu-
alised shower design by enabling solutions that even the most flexible
standard range cannot achieve (for example spacious walk-in showers).
The trade gave these innovations a very positive reception. The division’s
prestigious stand at the ISH (the international trade fair for bathroom,
building, energy and air-conditioning technology) in Frankfurt was an
impressive reminder of the outstanding market position of the Arbonia and Kermi brands,
and attracted above-average numbers of visitors.
The division also received very gratifying feedback from a survey of tradespeople
on shower screens conducted by trade magazine markt intern. Kermi was given top marks
for product mix, product quality, handling of complaints, supply of replacement parts and
assembly technology/ease of assembly. This put Kermi at the top of the overall rankings once
again.

Investment at all facilities
Efforts to globalise
and boost efficiency are
pillars of the division’s
growth strategy.
Heating Technology and Sanitary Equipment Division
Last financial year the Heating Technology and Sanitary Equipment Division again invested in
all its facilities in an effort to further boost productivity, flexibility and quality. Worthy of spe-
cial mention is the launch of new facilities in Riesa, Germany, for manufacturing convector
heaters. The flexibility and efficiency of these new facilities have helped strengthen one of the
division’s classic competitive advantages by enabling further reductions in delivery times. At
the Arbon facility, the division commissioned new wet coating equip-
ment which extends the range of colors, particularly for small batches,
and enables specific customer requirements to be met to even shorter
delivery deadlines. In Plattling, the division invested in manufacturing
equipment to rationalise the production of flat radiators and shower
stalls. After production at the Str ˇíbro works in the Czech Republic was
expanded in 2004, during the year under review the focus was on optimising
quality and productivity. The final phase of the implementation
of the SAP R/3 system at the Arbon (Canton Thurgau) and Riesa facilities was completed successfully.
The new software system ensures that all the division’s facilities are now optimally
networked. The resulting gains in flexibility and transparency have already had a positive
impact on an operational level.
Outlook: Consolidated market position and further international expansion
The division anticipates a tough operating environment for the current year as well. In Germany,
for example, the new federal government is planning to significantly increase the
burden on private individuals and corporations, and the construction industry will continue
to feel the effects of the complete abolition of the homeowner’s tax deduction.
In Switzerland, the division’s second home market, the current figures for residential
planning permission indicate a positive trend for 2006. Residential construction activity is
forecast to stabilise at a high level in the medium term.
The environment will remain very challenging in 2006, and the division will continue
to respond with an absolute commitment to the needs of its customers and the market.
A good international reputation and the brand equity of Arbonia, Kermi and Prolux are the
basis of strong customer relationships which enable the division to act as a reliable partner to
wholesalers, architects, planners and tradespeople. In 2006, these qualities will again be
rounded off by consistent top quality and a broad service offering.
The Heating Technology and Sanitary Equipment Division intends to use its strong
position in its home markets as a basis for pursuing its strategy of globalisation further in
2006. It will do so through intense efforts to expand country-specific product portfolios,
especially for shower screens, and by penetrating new markets. At the same time the division
will consolidate its position in its home markets by building its innovation and design expertise
further, and optimising cost structures and production processes.

in CHF million
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
Heating Technology and Sanitary Equipment: key figures
Net sales
EBITDA
EBIT
35.7
43.0
EBIT in % of net sales
6.7 %
57.7
8.0 %
Headcount (full-time equivalent)
68.8
261
2711
530.
540.7
28 2
The bathroom: an oasis of wellbeing — The bathroom is increasingly one of the most
important living spaces in the home. What was once a utilitarian place for washing
has become an oasis of wellbeing – a place to retreat, relax and regenerate from the
stress of everyday life. And this means expectations are higher too. People want
beautifully designed bathrooms which function perfectly, and are prepared to invest
accordingly. This development is opening up new opportunities for the Heating Tech-
nology and Sanitary Equipment Division and its portfolio of outstanding designer
radiators and high-end shower stalls. And all the more so given that each of its brands,
Arbonia, Kermi and Prolux, is clearly positioned in this segment and offers a range of
products systematically geared to the new bathroom trend – a fact underscored by
numerous contemporary awards and design prizes.

Piatti kitchen, Trend model
(top left).
Forster kitchen, Color Line 2 model
(top right).
Delivering 75 kitchens and 350
refrigerators a day requires a high
degree of expertise at every
stage of production, right up to
final assembly. Here you see
the fully automated process for
producing panels to customer
specifications (bottom).
Kitchens and Refrigeration Division
“Swiss made: a quality benchmark
in kitchen building.”
“Forster Kitchens: What I like most is their clear design language and a way of
using of high-quality steel that is unique anywhere in the world. Forster Kitchens
stand out in terms of toughness, ease of use, hygiene and extreme durability.
They’re timeless classics for tenants and property owners.“
Reto Visini (42), Proprietor, Anne-Marie Fischer + Reto Visini Architects,
Zurich (Switzerland), www.fischer-visini.ch
“Piatti Kitchens: For me the key deciding factors are quality, professional advice
and flexibility. This is why the Swiss quality brand Piatti has been our choice for years.
Piatti Kitchens guarantee satisfied tenants and many years of use.”
Othmar Räbsamen (42), CEO, ASIG building cooperative, Zurich (Switzerland),
www.bgasig.ch
30 31

Integration of Forster and Piatti bears fruit
The Kitchens and Refrigeration Division of AFG Arbonia-Forster-Holding AG, with its Forster and Piatti brands, is by far the
biggest manufacturer and supplier of kitchens in Switzerland, while the Miele Kitchens brand is represented in more than
50 countries. Its extraordinarily broad selection of products ranges from low-cost models to exclusive, state-of-the-art
kitchens in stainless steel or high-gloss finishes, marketed both to the building trade and direct to household consumers.
Its two independent brands Forster and Piatti are clearly positioned in the market, and have great future potential. The
division is also managing to exploit synergies at all levels. A dense distribution network guarantees close proximity to cus-
tomers throughout Switzerland. Forster Refrigeration is the only manufacturer in Switzerland to develop and produce
high-quality built-in refrigerators in different sizes. Most of its customers are distribution partners and consumers in Swit-
zerland.
Kitchens and Refrigeration Division
In the 2005 financial year, the Kitchens and Refrigeration Division extended its position as the
leading kitchen manufacturer in Switzerland. The acquisition of Miele Kitchens as of 1 Sep-
tember 2005 gave AFG Arbonia-Forster-Holding AG access to the premium segment of the
world market. Including Miele Kitchens from 1 September 2005, sales grew an impressive
16.5 % to CHF 238.8 million. Organic growth came to 5.2 %. The division’s EBIT was up
108.9 % to CHF 9.3 million during the year under review. The headcount grew to 886 including
268 people from Miele Kitchens. Adjusted for the acquisition, the headcount declined by 14 to
592 employees as a result of efficiency gains at Piatti.
The acquisition of Miele Kitchens, whose products (labeled “Miele Die Küche” in
German-speaking countries) are manufactured by Warendorfer Küchen GmbH in Warendorf,
Westfalen (Germany), was the most important milestone in the strategic development of the
Kitchens and Refrigeration Division during the 2005 financial year. Since the takeover did not
take effect until 1 September 2005, the impact of the integration on the year under review
was fairly limited. The report below therefore refers to the performance of the division without
Miele Kitchens.
Integration of Forster and Piatti bears fruit
The program to integrate Forster Küchen- & Kühltechnik AG, Arbon (Canton Thurgau), with
Bruno Piatti AG, Dietlikon (Canton Zurich), released considerable synergies in 2005, and underscored
the division’s market potential. Both companies saw a sharp increase in sales, consolidating
AFG Arbonia-Forster-Holding AG’s market leadership. With a market share of
around 20 %, the company is by far the largest manufacturer and supplier of kitchens in
Switzerland. Progress on the earnings side was also largely due to the successful integration
of the two brands under the “Chef de Cuisine” banner. As part of the successful ISO
9001:2000 recertification, all operational processes were reviewed in detail. Various measures
were taken that resulted in a reduced error rate, an optimised cost structure, and, in
turn, increased competitiveness. The restructuring was more or less completed during 2005.

Positive market environment
32 33
The market is still highly fragmented, and during the year under review was again dominated
by a large number of providers with small market shares and overcapacities, coupled with
growing imports. Related to this was another increase in margin pressure and more intense
price competition. However, the fundamentals on the demand side stimulated investment in
the residential sector, with interest rates low, institutional investors eager to invest, and resi-
dential vacancy rates low in the major Swiss urban centers. Forster and Piatti kitchens drew
considerable benefit from this positive environment. Also conducive to success were the divi-
sion’s concerted efforts to maintain customer proximity, the consistently high quality of its
advice and service, and its ability to anticipate customer needs and implement innovations
rapidly. Piatti illustrated this with the launch of its handleless kitchen, new models in the
popular colors sand, wenge and rosewood, and the integration of multimedia applications.
In the year under review Piatti, acquired in 2004, recorded the highest volume of new orders
in the firm’s 58-year history, and the company grew twice as quickly as the market in 2005.
A strategic adjustment undertaken in 2004 at Forster (involving a return to the wholesale
market) had a positive impact.
With a market share
of around 20 %,
AFG Arbonia-Forster-
Holding AG is by far the
largest manufacturer
and supplier of kitchens
in Switzerland.
Distribution network even more efficient
One particular area of focus in 2005 was to optimise the existing dense distribution network
and make its coverage even more complete. Forster, which specialises in steel kitchens, closed
gaps in the network of seven kitchen centers and five regional representatives in western and
northwest Switzerland and the Valais. Partnerships with new specialist
dealers were forged in Fiesch (Canton Valais), Lugano (Canton Ticino)
and Urdorf (Canton Zurich). Distribution via “Badewelten,” the collec-
tive brand of Swiss sanitary installation companies, was made more pro-
fessional, which stimulated sales of utility room fittings. In 2005, Piatti
came even closer to its customers, and with eight branches and 80
retailers has excellent coverage of the whole of Switzerland. On aver-
age, there is a Piatti showroom twenty minutes away by car from any-
where in the country. A strong domestic market position and know-how
built up over decades will continue to serve as the basis for penetrating
selected export markets in the future. With modern production facilities
and outstanding “made in Switzerland” product and service quality, the
Forster and Piatti brands are ideally placed to be successfully marketed
on an international basis. Cooperation with Miele Kitchens, a brand that is firmly established
and distributed internationally, will open up additional opportunities.

With “made in Switzerland”
product and service
quality, the Forster and
Piatti brands are ideally
placed to be successfully
marketed on an
international basis.
Kitchens and Refrigeration Division
Forster Refrigeration a strong, innovative presence in the market
Thanks to its concentration on the Swiss market for built-in appliances, Forster Refrigeration
saw a slight increase in sales. Its market share for appliances that meet the Swiss SMS instal-
lation standard is over 60 %. One real hit has turned out to be the innovative niche product
Capovino, the first world’s first built-in wine cooler with two different variable temperature
zones for red and white wine. The market received this world first with enthusiasm.
Outlook: Market potential intact, outlook encouraging
Following the successful completion of the restructuring and a strategic reorientation, the
stage is set for the Kitchens and Refrigeration Division to increase profitability. Added to this,
lively new construction and renovation activity is opening up further
growth potential. Forster and Piatti are well equipped to tap into this
potential, and will strive for further growth in market share. To this end,
in spring 2006 the Kitchens and Refrigeration Division is opening a new
kitchen center in Chur (Canton Graubunden), incorporating the three
brands Forster, Miele Kitchens and Piatti under one roof, which will serve
as a platform for more intensive marketing in the promising region of
Southeast Switzerland. Added to this, the division will fill the last re-
maining gaps in its network of regional representatives in Switzerland.
Although the market for built-in refrigerators is showing no clear signs
of growth, the Refrigeration unit anticipates an increase in sales thanks
to its leading position in the Swiss market for built-in fridges and Forster’s
innovative strength. Here selected niche products, distributed on both the domestic and
export markets, should play an even more significant role going forward.
The kitchen becomes a place to live and enjoy — In recent years, the kitchen has evolved
into a true living space. Building clients increasingly expect high-quality materials and a
level of design in keeping with the rest of the living area. Despite a high degree of price
awareness, people are willing to invest more in the kitchen as an area to live in and enjoy.
In parallel with this, demand for expert, creative planning and comprehensive customer
service is growing. People are also becoming increasingly brand aware. With its clearly
defined Forster, Miele Kitchens and Piatti brands, AFG Arbonia-Forster-Holding AG will
derive long-term benefit from this trend. As regular market research shows, consumers
perceive these as three attractive, high-quality brands.

in CHF million Kitchens and Refrigeration: key figures
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
1)
2)
1)
2)
1)
2)
1)
2)
1)
2)
Net sales
EBITDA
EBIT
4.5
.3
1 .4
17.4
EBIT in % of net sales
3. %
2.2 %
Headcount (full-time equivalent)
886
635
1) incl. Warendorfer Küchen GmbH since 1 September 2005
2) incl. Bruno Piatti AG since 1 February 2004
205.1
238.8
34 35

Precision steel tubing, 25 x 1.2 mm
(top left).
Forster thermfix vario facade system
in stainless steel (top right).
The steel band is cut to the required
breadth and prepared for dispatch to
the tube welding line (bottom).
Steel Technology Division
“Customer satisfaction is a key
component of our corporate culture.”
“Consistently high quality and the ability to deliver to deadline have made Forster
an outstanding supplier and unique partner for the last thirty years.”
Ernst Hauser (53), Head of Purchasing, USM U. Schärer Söhne AG, Modular Furniture,
Münsingen (Switzerland), www.usm.com
36 37

Steel Technology Division
Upgrades across the board
The Steel Technology Division operates in two businesses: precision steel tubing, and profile systems. All products are
manufactured at highly efficient facilities in Arbon (Canton Thurgau), and European countries outside Switzerland account
for the lion’s share of sales. The Forster Precision Steel Tubing unit specialises in customer-specific solutions for sectors
such as heating technology, furniture and shopfitting, automobiles, construction, and mechanical engineering. The Forster
Profile Systems unit supplies the construction industry with a range of profile systems for windows, doors and facades as
well as for security applications such as fire, smoke, burglar and bullet proofing in steel and stainless steel. Both units are
geared to sustained, organic growth and increased profit contribution.
In 2005 the Steel Technology Division, comprising the Precision Steel Tubing and Profile Sys-
tems units, saw sales increase 13.4 % to CHF 147.0 million in a hard-fought market, demon-
strating that the strategic focus on high-end systems and customer solutions is paying off. A
slight decline in margins and lower sales of commodity-type products, and one-time charges
for a switch to higher-margin products led to a reduction in earnings (EBIT) from CHF 12.9
million to CHF 11.3 million year on year. The market was responded very positively to the
decision to offer customer-specific value creation processes as part of the range of services,
which has opened up interesting opportunities for profitable growth. The division’s head-
count increased to 315 in the year under review.
The impressive growth in sales revenues on slightly lower volumes was largely due
to higher steel prices and concentration on higher-value-added market segments. Driven by
supply bottlenecks, steel prices reached a high at the beginning of 2005, although prices
declined somewhat in the course of the year as the supply situation returned to normal. As
the situation eased, there was an improvement in inventory availability in the steel industry,
leading to much more intense price competition.
Focus on higher-value-added products
In this environment, the division’s strategic reweighting of its product portfolio became all the
more important. For example, it was increasingly able to market higher-value-added products
for the automobile industry as opposed to simple radiator tubes. During the course of the
year the division abandoned the manufacture of products which, from the customer’s point
of view, no longer require Forster’s high quality standards and can just as easily be produced
by competitors in low-wage countries. With the exception of a few specialty products, Forster
also ceased manufacturing standard tubes to DIN 2395. Although the upgrade in production
was not enough to fully offset the decline in volumes, it does create the basis for lasting
improvements in performance.
Production costs were further reduced through a series of rationalisation projects,
and there were substantial productivity gains in drawing, fixed-length and systems manufac-
turing in particular. In addition to this, the division enhanced its fixed length tubing and truing
capabilities to lay the technical foundation for a number of automotive product innova-
tions.

38 3
Projects aimed at making production more flexible – primarily by reducing set-up
times at the welding facility – progressed on schedule. The SAP implementation has been
launched successfully, and will result in a clear improvement in the transparency and quality
of process-related information, and enable customer inquiries to be dealt with even more
quickly.
Alongside the development of new products to build AFG Arbonia-Forster-Holding
AG’s position as an integrated supplier to the construction industry, the division is also work-
ing closely with customers to integrate additional procedures and value-adding processes into
the value chain. Examples include processes for polishing stainless steel window and door
profiles, and stamping and pressing processes for finishing tube components for shutters, to
name but a few. Here synergies with purchasing, production and distribution logistics are
being fully exploited.
Forster Precision Steel
Tubing seeks growth
primarily in the European
automotive sector,
by far the largest market
for high-end precision
steel tubing.
Precision steel tubing for the automotive industry
When it comes to precision steel tubing, Forster’s traditional strength has been tubes for
furniture and shopfitting (trade name WBKV) that are ready for finishing (in most cases
chrome plating). Forster is looking primarily to the European automotive sector, by far the
largest market for high-end precision steel tubing, as a source of substantial growth. To this
end, in recent years the company has laid the necessary foundations through an upgrade to
ISO TS 16949 certification, and technology and process audits from well
known OEMs (original equipment manufacturers) and first-tier suppliers
(direct suppliers to OEMs). The implementation of a computer aided
quality assurance (CAQ) system acquired in 2004 was successfully completed
by the end of 2005, and now all quality management functions
from quality planning and risk management (failure modes and effects
analysis or FMEA) to statistical quality controls and complaints handling
are computer aided from start to finish. Efforts to grow the tubing business
are based on a substitution strategy involving the replacement of
expensive tubing applications with more cost-effective tubing solutions
offering customers the same benefits. The most important of these is to
substitute custom-rolled, welded tubes for cold-drawn tubing. Samples
of a whole series of substitute products for steering, chassis and drive train systems have already
been successfully produced, and some have been mass-produced and delivered.

Steel Technology Division
In addition to this substitution strategy, in 2005 Forster modernised its tube draw-
ing facilities to be able to manufacture tubes that cannot be substituted by welded tubing
because of the dimensions, material characteristics or precision required. The focus is on
drawn profiles and small, thick-walled tubes from conventional and high-hardness steels.
Innovative profile systems
In 2005, exports
accounted for more
than 70 % of Profile
Systems sales.
In 2005 the Forster unit saw a substantial increase in sales despite sluggish construction activ-
ity in countries like Germany, the Netherlands, Belgium and Italy. Thanks to broad geograph-
ic diversification, declining sales in some countries were more than offset by increases in
other markets. International expansion into new markets also bore healthy fruit, with grow-
ing demand in Russia, Poland and Slovenia in particular. In 2005, exports
accounted for more than 70 % of Profile Systems sales. Numerous product
innovations also helped boost sales. At Europe’s biggest building
trade fairs, Bau in Munich and Bâtimat in Paris, Forster presented its
unique T90/F90 fire protection system, and Forster fuego light TEGO, a
system developed in collaboration with Dorma that allows the straightforward
integration of access control, escape route surveillance and
door automation. Both innovations met with a great response from the
industry. Forster Profile Systems’ broad selection of products has been expanded by the addition
of new concealed hinges, panic fittings and flush-fitting glass, giving architects and designers
a whole new range of possibilities.
During 2005 a development team came up with a completely new steel and stainless
steel profile system for thermally insulated doors and windows called Forster unico. The
system was extremely well received by a trade audience at the Bâtimat fair in Paris in November.
New state-of-the-art production facilities were commissioned in March 2006, and first
sales of the Forster unico system are scheduled for June 2006.
The year under review also saw the implementation of new CE marking standards.
In Switzerland, Forster acquired more than 400 fire protection licensees, and offered training
in the new EN norms at its facilities. Altogether, more than 1,200 people attended the fire
protection courses at Arbon (Canton Thurgau). Forster’s facade systems were inspected and
approved in accordance the new EN norms.
Outlook: Further growth in volumes and profitability
The Steel Technology Division foresees growing demand for steel in 2006, resulting in a marginal
firming in steel prices. The launch of new, innovative products in both the division’s units
will more than make up for the anticipated decline in sales of commodity-type products, and
should enable slight growth in volumes and increasing market shares in the high-end segment.

in CHF million Steel Technology: key figures
2005
2004
2005
2004
2005
2004
2005
2004
2005
2004
Net sales
EBITDA
EBIT
11.3
16.6
12.
17.8
EBIT in % of net sales
7.7 %
12 .6
10.0 %
Headcount (full-time equivalent)
315
308
147.0
40 41
Ongoing efforts to rationalise production should offset unavoidable increases in
costs, especially energy costs, and give a sustained boost to the division’s performance. The
Steel Technology Division sees particular growth potential in the automotive industry. Invest-
ment in office furniture has also picked up again after a number of slack years, creating op-
portunities for additional growth.
The ability to penetrate new markets and consistently come up with a large number
of innovative products forms the basis for continued growth in sales and earnings at the
Profile Systems unit. Our product range meets growing safety requirements particularly ef-
fectively.
Trend to narrower profiles, better safety and security, and lower costs — Forster Profile
Systems anticipates various trends that are emerging on the customer side. They in-
clude demand for very narrow frames that help create bright, well insulated spaces
by enabling a higher proportion of glass to be used in the construction of buildings.
And the highest levels of fire and smoke protection and burglar and bullet proofing
are an increasingly important consideration. The automobile industry will face even
greater pressure to cut costs. One way of doing this is by substituting Forster’s custom-rolled,
welded tubes for high-cost cold-drawn tubing. In 2005 a number of
potential customers initiated sampling processes. Forster precision steel tubing is
already proving to be a good alternative in terms of both price and quality.

Residential and office building on
Kreuzplatz in Zurich, with EgoKiefer
HA3 wood/aluminum sound insulated
windows (top).
EgoKiefer synthetic lift and slide
doors are assembled at the Altstätten
Ost production facility. There is a
growing trend to large windows and
french windows (bottom).
Windows and Doors Division
“Windows and doors give
the façade a face.”
“Manufacturing premium doors and windows is only one facet of EgoKiefer’s
business. They are just as strong in terms of advising customers, assembly and
fitting, and after-sales service. EgoKiefer helps us deliver high-quality windows
and doors offering optimum value for money.”
Daniel Rhyner (38), Team Manager at Karl Steiner AG, Total Services Contractor,
Zurich (Switzerland), www.steiner.ch
42 43

Windows and Doors Division
Market leadership extended
The Windows and Doors Division with its EgoKiefer brand is Switzerland’s leading provider of windows and doors. Ego-
Kiefer develops, manufactures, markets and fits a wide variety of doors and windows made of synthetics, synthetics/alu-
minum, and wood and wood/aluminum, plus doors for interior and exterior use. The division has two production facilities,
in Altstätten (Canton St. Gallen) and Villeneuve (Canton Vaud). EgoKiefer windows and doors are innovative, modular
system solutions that can be tailored to cover all customer requirements. EgoKiefer strives to built long-term partnerships
with its customers and suppliers.
In 2005, the Windows and Doors Division generated sales of CHF 220.6 million with around
870 staff. This is a year-on-year increase of 5.5 % on a full-year comparison basis, and a new
record in the history of the company. During the year under review, EgoKiefer AG once again
grew market share in all sales regions, and extended its leadership in the Swiss windows and
doors market. Operating profit (EBIT) came to CHF 20.5 million, resulting in a virtually unchanged
EBIT margin of 9.3 %.
In the year under review, EgoKiefer’s production facilities in Altstätten (Canton St.
Gallen) and Villeneuve (Canton Vaud) manufactured more than 600,000 square meters of
windows and more than 17,000 doors – year-on-year growth of 4 % for windows and 19 %
for doors. This is the highest production figure in the history of EgoKiefer. Particularly notable
was powerful growth in synthetic/aluminum windows (+75 %). But sales of HA3 wood/aluminum
windows (+9 %), lift and slide doors (+30 %), and doors (+19 %) also developed very
well indeed. During the year under review the Swiss windows and doors market benefited
from strong construction activity. The volume of the windows and doors business grew only
marginally, by around 2 to 3 %, versus 2004. Demand from new residential construction and
renovation grew so positively that it more than made up for a decline in demand from the
non-residential sector. EgoKiefer managed to tap into the healthy development of the economy
to extend its leadership in the Swiss market.
Expertise along the entire process chain
The company was able to further reduce throughput and delivery times thanks to lean and
automated production processes optimised on an ongoing basis. The implementation of a
highly flexible estimate and order management system at branch offices, linked online to
Ego-Kiefer headquarters in Altstätten (Canton St. Gallen), proved to be extraordinarily effective.
Thanks to smart, just-in-time handling of production processes, EgoKiefer is able to
manage and coordinate the production of 1,300 window units, the loading of more than 50
trucks, and the delivery of 150 orders throughout Switzerland and its neighboring countries
every day.

Production capacities expanded
44 45
The first phase of the extension of EgoKiefer’s production facility in Villeneuve (Canton Vaud)
was completed on time in August 2005. The extension comprises a new 2,695 square-meter
building with a state-of-the-art high-tech window processing center. A total of CHF 5.8 mil-
lion has been invested in Phase 1. The new production capacities have resulted in further
increases in volumes and greater flexibility allowing the rapid launch of new product innova-
tions. Heavy demand has prompted EgoKiefer to shift the manufacture of synthetic entrance
doors and lift and slide doors to a new location. The new, rented “Altstätten East” production
facility, covering a total of 1,000 square meters, was commissioned in May 2005.
EgoKiefer sets the trend
EgoKiefer again
extended its lead in
Swiss windows and
doors in 2005.
In the year under review, EgoKiefer extended its technology leadership by once again bring-
ing a whole range of attractive innovations to market. These included an optimised basic
version of EgoKiefer’s exclusive insulating glass EgoVerre ® . Since June 2005, EgoKiefer has
been delivering its window systems with enhanced heat insulation as standard – at no extra
price. With around 2.7 million units sold, EgoVerre ® is one of the most successful insulating
glass technologies in Switzerland. The new XL ® window system in wood/aluminum, with its
visibly higher proportion of glass, opens up a whole new world of windows. The new system
is EgoKiefer’s response to concrete customer demand for more light,
warmth and visibility. The profile geometry has also been improved sig-
nificantly through the use of innovative adhesives technology. The lean,
streamlined design opens up new perspectives for construction planners
designing facades. In May 2005, EgoKiefer became the first company in
Switzerland to offer a synthetic/aluminum integrated solution for win-
dows, lift and slide doors, and entrance doors. The solution opens up a
huge number of options when it comes to designing dynamic, individual
facades. The aesthetic quality of EgoKiefer’s new designer interior doors created a stir at the
Swissbau 2005 building trade fair. Thanks to its extensive distribution network, EgoKiefer can
offer its expertise and know-how, in areas ranging from pre-construction to fitting, throughout
the whole of Switzerland.

Windows and Doors Division
Outlook: Continued leadership through ideas
Going forward, EgoKiefer will keep to its successful formula of leadership through ideas, in-
vesting in expanding the company, its partner network and its range of services. In 2006
(probably mid-year), EgoKiefer will launch its new XL ® synthetic window system, adding an
attractive alternative material to the wood/aluminum version launched in the 2005 financial
year. A customer-focused range of products, pan-Swiss market coverage, and outstanding
service capabilities will keep EgoKiefer on the growth path in 2006, and enable it to further
build on its market leadership. The company will strive for particularly strong growth in the
doors business.
EgoKiefer will keep to
its formula of leadership
through ideas.
Construction remains healthy — Since 2000, construction has performed better that the
Swiss economy as a whole. While gross domestic product (GDP) had only increased around
2 % by 2004, investment in building construction had grown around 12 % over the same
period. There was another slight increase in real investment in construction in 2005. This
positive development was largely due to new residential construction:
38,500 new residential units were built in 2005, almost 5% more
than the previous year, and the highest figure since 1996. Statistics
for the number of homes under construction and trends in planning
permission point to stagnation or only a slight increase in residential
construction activity in 2006. It pays to be cautious with regard to
further developments: from 2007 and 2008 onward, market analysts forecast a decline in
residential building and, by extension, in total construction activity.

in CHF million Windows and Doors: key figures
2005
2004
2004
2005
2004
2004
2005
2004
2004
2005
2004
2004
2005
2004
2004
1)
2)
1)
2)
1)
2)
1)
2)
1)
2)
Net sales
EBITDA
EBIT
13.
20.5
1 .7
26.6
26.4
26.7
EBIT in % of net sales
.3 %
8.5 %
Headcount (full-time equivalent)
871
84
866
.4%
163.3
20 .0
220.6
1) EgoKiefer has been integrated in AFG Arbonia-Forster-Group since 1 May 2004.
2) 2004 pro/forma comparison for 12 months (under Swiss GAAP FER)
46 47

Corporate Center
In the service of success
The Corporate Center delivers services which are not core competencies of AFG Arbonia-Forster-Holding AG, but which
are crucial to the successful development of its business. Three of the Corporate Center’s most important areas of respon-
sibility are human resources, information technology (IT), and transport and logistics.
Human resources
In 2005, the HR teams of the major AFG companies in Switzerland merged to form the AFG
Arbonia-Forster-Holding AG Human Resources department. The new department’s role in-
cludes personnel development: preparing employees to meet the requirements of the or-
ganisation now and going forward. The basis of personnel development is the systematic
identification of suitable managers and specialist staff, both inside and outside the company.
Since 2005, this has been done by means of a cross-divisional staff appraisal system, peri-
odic assessments of the status quo, and tests conducted as part of the recruitment process
to assess a candidate’s personality and his or her behavior in everyday situations. The findings
of these tests are then backed up with interviews or assessments. The next phase is to de-
velop key competencies such as the ability to work in an international environment, and in-
tercultural management and social skills.
Information technology
During the year under review, the IT function of Bruno Piatti in Dietlikon (Canton Zurich) was
integrated with the IT organisation at the Steel Technology Division and Forster Kitchens and
Refrigeration in Arbon (Canton Thurgau), a move which included expanding the company’s
internal IT capabilities (insourcing). The year 2005 also saw the launch of the largest informa-
tion technology project ever undertaken by AFG Arbonia-Forster Holding AG: the implemen-
tation of SAP in the Kitchens and Refrigeration and Steel Technology divisions. The implemen-
tation project is being delivered in collaboration with Comgroup, a subsidiary of the Würth
Group. Parallel to the implementation of SAP, AFG Arbonia-Forster-Holding AG is also setting
up a cross-locational SAP center of competence in Arbon and Dietlikon.
Transport and logistics on the road to success
Most of the Group’s transport and logistics services are provided by two group companies
based in Arbon TG: Asta AG and Spedition Gächter AG. The year under review saw both
companies put in another very good performance. The operating profit (EBIT) of Asta AG,
which employs 28 people, increased 33.8 % to CHF 1.2 million on sales of CHF 20.3 million
(+10.3 %). The company works in partnership with specialist forwarders to deliver most of
the logistics services required by AFG Arbonia-Forster-Holding AG, but also works for independent
customers both in Switzerland and abroad.

48 4
Spedition Gächter AG specialises in providing services to customers in two indus-
tries that require particularly sophisticated transport services: printing and paper machinery,
and the finishing industry. In 2005 its 18 employees generated an EBIT of CHF 0.3 million on
sales of CHF 6.5 million (+11.1 %).
These gratifying results were achieved in an environment of rising heating oil and
diesel prices, and growing pressure on prices from forwarding companies in the new EU
member countries. Both companies were able to avoid a collapse in margins thanks to integrated
solutions, consistently high quality and targeted cost-cutting.
Investing in the future
Given the growth of Asta AG and Spedition Gächter AG themselves and the growth of AFG
Arbonia-Forster-Holding AG, Asta’s most important customer, the logistics center has to be
expanded. For this reason a new logistics center with five loading and unloading stations and
2,200 square meters of warehousing and handling space is to be set up by mid-2006. This
means that as the year progresses, Industriestrasse in Arbon (Canton Thurgau) will become
an efficient hub handling just-in-time deliveries to customers in Switzerland and abroad.
In autumn 2005, Spedition Gächter AG commissioned vehicles that fulfill the Euro
5 norm, and during 2006 Asta AG will also renew its fleet to meet the new standard. The new
technology will help reduce emissions by up to 80% by comparison with the Euro 3 norm that
currently applies.

We deliver on time to customers all
over the world.
Logistics
“A strong forwarder you can rely on.”
“We transport large volumes of goods for our customers, both as part and full loads.
In a domestic business characterised by an increasingly tough economic environment,
we choose the provider that delivers the best services. This explains why Lista AG
and Asta AG are long-standing partners of ours.”
Michael Kunze (44), Head of Forwarding, Lista AG, Erlen (Switzerland),
www.lista.com
“A reliable and flexible response to our day-to-day logistical challenges.”
Ulrike Kipphan (29), General Procurement Services & Utilities,
Heidelberger Druckmaschinen AG, Wiesloch (Germany), www.heidelberg.com
50 51

An integral component of our corporate
philosophy
Environmental compatibility and safety at the workplace are taken so seriously at AFG Arbonia-Forster-Holding AG that
they are viewed as key factors in the sustainable economic success of our company. These are issues that affect every
part of the business, from R&D through production and service. In recent years, AFG Arbonia-Forster-Holding AG has
significantly stepped up its environment and safety efforts in line with international standards. As a result, most divisions
and units have ISO certification.
Environment and Safety
Heating Technology and Sanitary Equipment Division
External measurements taken in line with the VOC guidelines revealed that emissions of
volatile organic compounds from the vent stacks at Kermi GmbH in Plattling (Bavaria) fall well
below the permitted limits, and have declined further by comparison with 2004 levels. A
technical modification to the spot welding equipment used in the mass production of radia-
tors enabled a 40 % reduction in the consumption of cooling lubricants. In line with the divi-
sion-wide logistics policy, more deliveries have been switched to environmentally-friendly
transportation by water rather than by road.
Kermi s.r.o. in Str ˇíbro has been able to reduce volumes of waste and optimise pro-
cedures for environmentally-compatible waste disposal. Efforts to improve workplace design
and ergonomics have resulted in greater safety and reduced the physical demands on employ-
ees.
Arbonia AG in Arbon (Canton Thurgau) has enhanced employee safety by intro-
ducing modified personal protective gear and installing new suction units. A new locking
system has been installed to improve building security.
Technical modifications have been carried out to minimise noise and dust levels in
tube production at AFG-Arbonia-Forster-Riesa GmbH, and further investment in safety has
had a positive impact on insurance premiums.
In the medium term, the division plans ongoing optimisation of processes related
to water consumption, wastewater, waste management, energy consumption and the struc-
tural development of its facilities to maintain its excellent environmental and safety standards
going forward.

Kitchens and Refrigeration Division
52 53
In the Kitchens and Refrigeration Division, the outsourcing of Piatti’s logistics had a particu-
larly positive impact on environmental performance. The implementation of an integrated
distribution and recycling system has helped minimise the number of vehicles traveling emp-
ty, systematise the return of waste, and increase recycling rates. For example, wood waste
from furniture production at Bruno Piatti AG is used to heat the whole building, and system-
atic sorting of construction waste in cooperation with professional recycling firms has en-
abled a high proportion of materials to be recycled.
Looking forward to 2007, Piatti plans to acquire ISO 14001 certification for its
environmental management system, and Forster Kitchens and Refrigeration will follow suit.
In 2005, the company that produces Miele Kitchens (now Warendorfer Küchen
GmbH) embarked on the annual certification under ISO 14001 (environment), ISO 9001
(quality management) and ISO 18001 (workplace safety). This certification will continue. Ac-
cording to the relevant reports, spot checks revealed no irregularities in the disposal of dan-
gerous materials or the implementation of the waste management policy.
Steel Technology Division
As in previous years, in 2005 Forster had its new profile systems subjected to intensive testing
by state-approved institutions prior to market launch, before homologising them in line with
different national standards. This ensures a high degree of product safety for staff, external
companies involved in subsequent processing, and customers.
To enhance workplace safety, during the year under review all crane operators
were given training in the latest accident prevention measures. Advanced training was also
provided on the Swiss ordinance on the movement of waste (VeVA), the new Swiss chemicals
legislation, CE marking, risk evaluation, and laser protection. All production and transporta-
tion facilities were subjected to a systematic risk review. Fire protection, chemical storage and
the handling of water-polluting liquids were also brought up to the latest safety standards in
light of the planned ISO 14001 certification.
During the year under review the Steel Technology Division began laying the foun-
dations to acquire ISO 14001 certification for its environmental management system, planned
for 2007. Parallel to this, by 2007 all major production facilities will undergo a risk review
under EN 1050 (European norm) in an effort to substantially improve workplace safety.

Environment and Safety
Windows and Doors Division
In line with ISO 1400 guidelines, at EgoKiefer the search for materials and production proc-
esses that enable optimum quality, productivity and environmental compatibility begins as
soon as work starts on developing new generations of products. Since the end of May 2005,
EgoKiefer has been delivering an optimised basic version of its exclusive insulating glass Ego-
Verre ® . Thanks to a new glass coating, the glass u-value (heat insulation) has been improved
from 1.2 to 1.1 W/m 2 K (European norm) – at no additional cost and without affecting the
excellent light transmission and total energy transmission of the material. Used in conjunction
with EgoKiefer’s high-performance window systems, this enables consumers to save up to
380,000 kg of heating oil per year, which corresponds to a CO 2 reduction of 1,180,000 kg.
Despite a increases in production of 19 % for doors and 4 % for windows, emis-
sions of VOCs (volatile organic compounds) at EgoKiefer have risen by only 2 %. VOC emis-
sions have been reduced 12 % in the manufacture of synthetic window systems, and 7 % in
the manufacture of wood and wood/aluminum window systems. VOC emissions produced in
assembly were reduced by a whole 13 %. Waste per unit (= 1m2 of window or 1 door element)
stabilised at the low level of 1.20 kg per unit. The final commissioning of new wastewater
separation equipment enabled EgoKiefer to almost halve emissions of special waste
(water contaminated with paint or varnish) to 0.042 kg. The recycling rate is stable at 33 %.
In the medium term, EgoKiefer will prepare an updated environmental balance
sheet for all its window systems, and use the findings to develop its products from an environmental
point of view.
The environmental performance of the division’s production and assembly processes
will be further enhanced as the technology permits. On the safety side, the division
plans to invest in spark detection equipment for its shaving removal system to minimise the
risk of fire.

Corporate Governance
Corporate Governance
54 55
General — This report complies with the SWX Swiss Exchange corporate governance guidelines of 17 April 2002. Unless
otherwise indicated, the data are valid as at 31 December 2005.
1. Corporate structure and shareholders
1.1 Group structure
Operational group structure — The operational structure of AFG Arbonia-Forster-Holding AG comprises four divisions
– Heating Technology and Sanitary Equipment, Kitchens and Refrigeration, Steel Technology, and Windows and Doors – in
addition to the Finance, Controlling and Reporting function and the Corporate Center.
The company reports in line with IFRS on the basis of this structure. In the report section page 24 and consecutive pages
of this report contain descriptions of the divisions.
Basis of consolidation — The companies that make up the basis of consolidation of AFG Arbonia-Forster-Holding AG are
listed in the Financial section on page 110 of this report. The bearer shares of AFG Arbonia-Forster-Holding AG are listed
on SWX Swiss Exchange under security number 1213250/ISIN CH0012132509. Information about market capitalisation
can be found in the information for investors. The registered shares of AFG Arbonia-Forster-Holding AG are not listed on
the stock exchange. Besides AFG Arbonia-Forster-Holding AG, none of the other companies that make up the basis of
consolidation are listed on a stock exchange in Switzerland or abroad.
1.2 Major shareholders — Major shareholders at the end of 2005 and 2004:
On 18 May 2005, notification was received that Julius Baer Multistock SICAV holds a voting share of less than 5 % in AFG
Arbonia-Forster-Holding AG. No other disclosures as per Swiss stock exchange law were made during the year under
review. As far as the company is aware, there are no pooling agreements involving major shareholders. As far as the com-
pany is aware, there are no pooling agreemetnts involving major shareholders.
1.3 Cross-participations — AFG Arbonia-Forster-Holding AG does not hold more than 5 % of the votes or the equity of
any other group company and vice versa.
in %
31/12/2005 31/12/2004
Voting share Capital share Voting share Capital share
Edgar Oehler 59.0 26.0 58.9 26.0

2. Capital structure
Corporate Governance
2.1 Capital and changes to the capital during the last three years, and other financial instruments — Since the Annual
General Meeting voted to reduce the company’s share capital by 40 % from CHF 12,600,420 in 2003, it has remained
unchanged at CHF 7,560,252. There has been no change in the proportion of registered shares and bearer shares.
There is neither authorised nor conditional capital. The company has issued neither participation nor profit-sharing cer-
tificates. No convertible bonds or warrants issued by AFG Arbonia-Forster-Holding AG are outstanding. AFG Arbonia-
Forster-Holding AG issued a bond (term 2004–10) with an interest rate of 3.375 % and a total nominal value of CHF 150
million on 3 June 2004. The debt must be repaid on 3 June 2010. Interest is paid annually on 3 June. AFG Arbonia-
Forster-Holding AG concluded a private placement of USD 160 million with a group of US investors on 2 December 2004.
The placement is hedged against interest and exchange rate risks, and is composed of different tranches in USD and EUR
with terms of between four and ten years.
31.12.2005/31.12.2004/31.12.2003
Category Share of votes Number Nominal value Share capital
Registered shares 68.18% 2 700 000 0.84 2 268 000
Bearer shares 31.82% 1 260 060 4.20 5 292 252
Total 100% 3 60 060 7 560 252
2.2 Limitation on the transfer of registered shares and registration of shareholders — The transfer of registered shares
requires the consent of the Board of Directors. The Board of Directors may refuse consent provided AFG offers to acquire
the shares for itself or for another shareholder or third party at their actual value at the time of the request. Consent may
also be refused if the purchaser does not submit a declaration that he/she is purchasing the registered shares in his/her
own name and for his/her own account. Registered shares acquired by a trust or a domiciliary company will only be
entered in the ledger if the identity of the beneficial owner is made known to the company. This is subject to Art. 685 b
(4) of the Swiss Code of Obligations. No exceptions were granted to these principles in the year under review.

3. The Board of Directors of AFG Arbonia-Forster-Holding AG
56 57
3.1 Members of the Board of Directors — The Board of Directors of AFG Arbonia-Forster-Holding AG consists of the fol-
lowing members:
Edgar Oehler — (1942, Swiss citizen), Ph.D., executive member, Chairman of the Board of Directors and CEO since 13
October 2003. 1971–1995 Member of the Swiss National Council; member of several parliamentary committees; 1973–
1985 Editor-in-Chief of the daily newspaper “Die Ostschweiz”; 1985–1990 General Manager of AFG Arbonia-Forster-
Holding AG; 1991–2004 Chairman of the Swiss Cigarette Industry Federation, CISC FR.
Ernst Buob — (1946, Swiss citizen), Ph.D. (Law), Attorney-at-Law, non-executive member of the Board of Directors since
13 October 2003. Partner in the law firm Buob Staub & Partner, St. Gallen. Ernst Buob has never been part of the execu-
tive management of AFG Arbonia-Forster-Holding AG or its affiliated companies. His business relationship with AFG
Arbonia-Forster-Holding AG consists in the activities of the law firm Buob Staub & Partner with respect to this company
and its affiliated companies.
Arthur Loepfe — (1942, Swiss citizen), Ph.D. (Econ.), non-executive member of the Board of Directors since 2002.
1979–2002 Partner in BSG Business Consulting St. Gallen; 1993–2000 Economic Director of the Canton of Appenzell
Innerrhoden; since 1999 member of the Swiss National Council. Arthur Loepfe has never been part of the executive management
of AFG Arbonia-Forster-Holding AG or its affiliated companies. He has no material business relationships with
AFG Arbonia-Forster-Holding AG or its affiliated companies.
Ulrich Flückiger — (1942, Swiss citizen), Ph.D., non-executive member of the Board of Directors since 2005. 1985–1987
Vice Director Marketing & Sales at Maschinen AG, Berne; 1987–1999 Ray & Berndtson SA and CEO of Korn/Ferry (Schweiz)
AG; since 2000 Managing Partner of drf consulting AG. Arthur Loepfe has never been part of the executive management
of AFG Arbonia-Forster-Holding AG or its affiliated companies. During the year under review his business relationships
with AFG Arbonia-Forster-Holding AG consisted of executive search consulting conducted by drf consulting AG on behalf
of AFG Arbonia-Forster-Holding AG.
Andreas Gühring — (1963, German citizen), degree in engineering, since 2005 non-executive member of the Board of
Directors representing holders of bearer shares. 1992–1996 Head of Industrial Engineering at Hydac GmbH; 1997–2000
CEO of Valeo GmbH; 2000–2004 CEO (Technology) of ThyssenKrupp Federn GmbH; 2004–2005 CEO of Brose Fahrzeugteile
GmbH & Co. KG; since 2005 CEO of ThyssenKrupp Drauz Nothelfer Gmbh in Heilbronn. Andreas Gühring has never been
part of the executive management of AFG Arbonia-Forster-Holding AG or its affiliated companies. He has no material
business relationships with AFG Arbonia-Forster-Holding AG or its affiliated companies.

3.2 Other activities and interests
Edgar Oehler — Since 1988 owner, Chairman and CEO of Hartchrom AG/Surface Technologies International Holding AG,
Steinach (Canton St. Gallen); member of various boards companies and foundations in Switzerland and abroad.
Ernst Buob — Chairman of the Board of Moser Holding AG, Innsbruck; member of the Board of Directors of Hälg Holding
AG, St. Gallen, and Hartchrom AG/Surface Technologies International Holding AG, Steinach (Canton St. Gallen); member
of various boards of companies and foundations in Switzerland and abroad.
Arthur Loepfe — Member of the Board of Directors of Emil Ebneter AG/Appenzeller Alpenbitter, Appenzell AI, Brauerei
Locher AG, Appenzell AI, Serto AG/Gressel AG, Aadorf (Canton Thurgau), and Blumer-Lehmann AG/Holzwerk Lehmann
AG, Gossau (Canton St. Gallen); member of various boards of companies and foundations in Switzerland.
Ulrich Flückiger — Since 2001 majority shareholder, Chairman and Managing Director of drf consulting AG, Urdorf
(Canton Zurich).
Andreas Gühring — Member of the Supervisory Board of ThyssenKrupp Umformtechnik GmbH, Ludwigsfelde.
3.3 Corporate integration — There are no reciprocity agreements with other boards of directors of companies listed on
the stock exchange.
Corporate Governance
3.4 Election and term of office — The members of the Board of Directors are generally elected by the ordinary general
meeting for a period of three years. The first term of a member of the Board of Directors equals the remaining mandate
of the member he/she has replaced, if applicable. The members of the Board of Directors may be re-elected an indefinite
number of times. The terms of office of the current members are as follows:
First elected Term expires
Edgar Oehler 2003 2006 (proposed for re-election at the 2006 AGM)
Ernst Buob 2003 2006 (proposed for re-election at the 2006 AGM)
Arthur Loepfe 2002 2006 (proposed for re-election at the 2006 AGM)
Ulrich Flückiger 2005 2006 (will not stand for re-election at the 2006 AGM)
Andreas Gühring 2005 2006 (proposed for re-election at the 2006 AGM)

58 5
3.5 Internal organisation — The Board of Directors meets at the invitation of the Chairman as often as the business of
the company requires, and at least three times a year. The full Board of Directors met five times during the year under
review.
3.5.1 Division of duties — The Board of Directors is presided by its Chairman, Dr. Edgar Oehler, who is also Chief Execu-
tive Officer. Vice-Chairman of the Board of Directors is Dr. Ernst Buob. The Board of Directors is supported by an Audit
Committee and a Remuneration and Nominations Committee.
3.5.2 Board committees — Each committee has a written charter, approved by the Board of Directors, laying down its
powers and responsibilities and working procedures. The Board of Directors appoints the members and chairs of the com-
mittees.
Audit Committee — The Audit Committee is composed of at least three members, of whom at least two (one of whom
must be the chairman of the committee) are independent and have experience in finance and accounting. The main re-
sponsibilities of the Audit Committee are reviewing the effectiveness of the external and internal auditors, evaluating the
internal control system, reviewing the financial reports and the performance, fees and independence of the external audi-
tors. The Audit Committee meets as often as business requires.
Since 9 June 2005, the Audit Committee has comprised the following members:
– Arthur Loepfe, Chairman
– Ernst Buob, Deputy Chairman
– Andreas Gühring
The Audit Committee met once during the year under review.
Remuneration and Nominations Committee — The Remuneration and Nominations Committee is composed of at least
three members, of whom at least two are independent. The main responsibilities of the Remuneration and Nominations
Committee are approving the group’s remuneration policy and determining principles for selecting candidates for election
to the Board of Directors and for top management. The Remuneration and Nominations Committee meets as often as
business requires.
Since 9 June 2005, the Remuneration and Nominations Committee has comprised the following members:
– Edgar Oehler, Chairman
– Andreas Gühring, Deputy Chairman
– Ulrich Flückiger
The Remuneration and Nominations Committee did not meet during the year under review.

3.5.3 Working procedures of the Board of Directors — The Board of Directors met five times during the year under re-
view. During the 2005 financial year, most of the duties of the Board of Directors were carried out by the full board. Before
their meetings, members of the Board of Directors receive documentation enabling them to prepare properly to deal with
the items on the agenda. As a rule the meetings last three quarters of a day. Members of Group Management, repre-
sentatives of the external auditors and external consultants are invited as necessary to deal with specific issues.
3.6 Division of powers — The Board of Directors is responsible for guiding, supervising and monitoring the executive
management of the company. It is responsible for approving and regularly reviewing company strategy, enacting the ne-
cessary rules, instructions and guidelines, and establishing the organisation and risk policy of AFG Arbonia-Forster-Holding
AG. It is also responsible for supervising and monitoring the persons entrusted with running the company. The Board of
Directors has designated Dr. Edgar Oehler as Managing Director; he simultaneously heads Group Management as Chief
Executive Officer (CEO). The division of powers between the Board of Directors, Group Management and divisional man-
agement is set out in detail in the articles of association, by-laws and division of powers and responsibilities (“Kompetenz/
Pflichtenregelung”) of AFG Arbonia-Forster-Holding AG. Within the framework of the law and the articles of association,
and based on the by-laws and division of powers and responsibilities, the Board of Directors has delegated the manage-
ment of the group to Group Management. Group Management has limited powers to decide on its own affairs and on
applications from the divisions.
Corporate Governance
3.7 Group management information and control instruments — The Board of Directors is kept informed about the ac-
tivities of executive management and the divisions via a number of different channels: The Management Information
System (MIS) provides the members of the Board of Directors with fundamental information about the financial, income
and risk situation of the group. The external auditors provide the Board of Directors with written and spoken information
on the main findings of the audit. The CEO oversees the members of Group Management who report to him and ensures
compliance with the law, the articles of association and regulations throughout the Group. He reports to the Board of
Directors on a regular basis, and immediately in the event of extraordinary developments. The Board of Directors may
demand any additional information it needs to carry out its tasks.

4. Group Management
60 61
4.1 Members of Group Management — The Group Management of AFG Arbonia-Forster-Holding AG comprises the fol-
lowing members:
Edgar Oehler — (1942, Swiss citizen), Ph.D. (PR), Executive Member, Chairman of the Board of Directors and Managing
Director and CEO since 13 October 2003; see 3.1 and 3.2 for further details of his person.
Felix Bodmer — (1955, Swiss citizen), lic. oec. HSG, Chief Financial Officer (CFO) since 1 June 2003; 1986–1992 various
positions at Hilti Group in finance and controlling, latterly Head of Finance and Controlling at a German subsidiary;
1993–2000 ABB/Alstom, Commercial Director/CFO of group companies, latterly CFO/Head of Shared Services at Alstom
Power (Schweiz) AG; 2000–2003 CFO of Steiner Group.
Knut Bartsch — (1969, German citizen), degree in industrial engineering, Director of Heating Technology and Sanitary
Equipment Division since 1 May 2004; 1996–1997 Assistant Corporate Manager at Preussag AG/TUI AG; with Kermi
GmbH since 1997, Director since 1999.
Thomas Gerosa — (1949, Swiss citizen), business economist, Director of Windows and Doors Division since 1 May 2004;
since 1972 various positions at EgoKiefer AG, Director from 1987–2004, and from 1 May 2004, Managing Director and
CEO. Since 2000 Chairman of the Board of Directors of Alpha RHEINTAL Bank, Heerbrugg (Municipality of Balgach,
Canton St. Gallen).
4.2. Management agreements — AFG Arbonia-Forster-Holding AG has not signed any management agreements with
companies or natural persons outside the group.

5. Compensation, profit-sharing and lending
5.1 Procedure for establishing and setting compensation and profit-sharing programs — The compensation of serving
and former non-executive members of the Board of Directors is not tied to their performance, and is determined by the
Board of Directors itself in accordance with the articles of association. There are no profit-sharing programs. The Remu-
neration and Nominations Committee is responsible for defining the group’s remuneration policy and setting the salaries
of members of Group Management. The remuneration of members of Group Management (including executive members
of the Board of Directors) consists of a base salary and a performance-related component. The amount of this perform-
ance-related component is set by the Board of Directors. Performance evaluations are based on quantitative and quantita-
tive factors. There are no profit-sharing programs.
5.2 Compensation of serving members of corporate bodies — During the year under review, total compensation (includ-
ing reimbursement of expenses and the employer’s contribution to pension plans) paid to serving members of the Board
of Directors and Group Management amounted to:
a) Executive members of the Board of Directors and members of Group Management: CHF 3,082,970
b) Non-executive members of the Board of Directors: CHF 242,890
In 2005, no severance pay was paid out to members of the Board of Directors or members of Group Management whose
mandate came to an end in the course of the year.
5.3 Compensation of former members of corporate bodies — No compensation was paid in the year under review to
members of the Board of Directors or Group Management whose mandate came to an end during the previous financial
year or earlier.
5.4 Allotment of shares in the year under review — Shares were not allotted to either non-executive or executive mem-
bers of the Board of Directors, or to members of Group Management, in 2005. The same applies to natural or legal per-
sons closely associated with them.
Corporate Governance
5.5 Possession of shares — The total number of shares held by executive members of the Board of Directors, members
of Group Management and natural or legal persons closely associated with them on 31 December 2005, was as follows:
1,760 bearer shares, 2,333,620 registered shares. At 31 December 2005, no bearer shares or registered shares were held
by non-executive members of the Board of Directors or natural or legal persons closely associated with them.

62 63
5.6 Options — Since options have never been distributed as part of compensation packages to members of Group
Management or the Board of Directors, neither they nor natural or legal persons closely associated with them hold such
options.
5.7 Additional fees and honoraria — In the year under review, the law firm Buob Staub & Partner, St. Gallen (whose
Managing Partner is Ulrich Flückiger, a member of AFG’s Board of Directors), billed a total of CHF 263,610 for providing
legal advice and representation to AFG Arbonia-Forster-Holding AG and its affiliated companies. In the year under review,
drf consulting AG (whose Managing Partner is Ulrich Flückiger, a member of AFG’s Board of Directors), billed a total of
CHF 41,850 for providing executive search services to AFG Arbonia-Forster-Holding AG and its affiliated companies. Otherwise
no fees or honoraria amounting to or exceeding half the amount of regular remuneration were paid to members of
the Board of Directors or Group Management, or to persons closely associated with them, during the 2005 financial year
for additional services provided to AFG Arbonia-Forster-Holding AG or its affiliated companies.
5.8 Lending — At 31 December 2005, AFG Arbonia-Forster-Holding AG and its affiliated companies had not granted any
securities, loans, advances or credits to any member of the Board of Directors or Group Management or to natural or legal
persons closely associated with them.
5. Highest total compensation — In 2005 the highest paid executive member of the Board of Directors received, including
all types of compensation, a total of CHF 1,683,900.

6 Participatory rights of shareholders
6.1 Voting rights and voting by proxy — The articles of association of AFG Arbonia-Forster-Holding AG contain no
regulations that deviate from the law, and in particular no percentual limitation on voting rights. Every share entitles the
bearer to one vote. Every shareholder is entitled to be represented at the Annual General Meeting by a proxy furnishing
written power of attorney.
6.2 Statutory quorum — Under Art.13 (3) of the articles of association of AFG Arbonia-Forster-Holding AG, the rules on
the transferability of registered shares can only be changed by a resolution of the Annual General Meeting, approved by
at least two thirds of the voting shares represented and the absolute majority of the nominal share value represented.
Otherwise, the articles of association of AFG Arbonia-Forster-Holding AG contain no regulations that deviate from the
law.
6.3 Calling of Annual General Meeting — The articles of association of AFG Arbonia-Forster-Holding AG contain no
regulations that deviate from the law.
6.4 Reports — Shareholders who hold at least CHF 1 million of share capital have the right to request reports about dis-
cussion items. Requests for reports must be submitted to the Board of Directors in writing, specifying proposals, at least
40 days before the date of the General Meeting.
6.5 Registration in share ledger — Holders of registered shares whose names are entered in the share ledger of AFG
Arbonia-Forster-Holding AG 30 days before the date of the Annual General Meeting AG must be sent invitations to the
Annual General Meeting together with the list of proposals from the Board of Directors and admission tickets.
7. Change in control and protective mechanisms
7.1 Obligation to tender — Article 6 of the articles of association of AFG Arbonia-Forster-Holding AG exempts the pur-
chasers of its shares from the obligation to tender a public offering as stipulated by Sections 32 and 52 of the Swiss Stock
Market Act (opting-out clause).
7.2 Change in control clauses — AFG Arbonia-Forster-Holding AG has no arrangements or plans that favor members of
the Board of Directors and/or Group Management or other members of upper management that include change in control
clauses.
Corporate Governance

8. Auditors
64 65
8.1 Length of mandate and term of lead auditor — Since 2003, Ernst & Young AG, St. Gallen, has acted as the auditor
of AFG Arbonia-Forster-Holding AG. Markus Oppliger has held the position of lead auditor since 2003.
8.2 Audit fees — The various auditors billed a total of CHF 830,490 for auditing the financial statements and consoli-
dated accounts of AFG Arbonia-Forster-Holding AG and the financial statements of its affiliated companies. Of this
amount, CHF 581,000 was paid to Ernst & Young AG, St. Gallen.
8.3 Additional fees — In 2005, CHF 109,160 was billed for additional services by the statutory and group auditors of
AFG Arbonia-Forster-Holding AG and other auditors of affiliated companies throughout the group. Of this amount,
CHF 69,880 was paid to Ernst & Young.
8.4 Audit supervision and control instruments — The Audit Committee monitors the professional qualifications, independence
and performance of the external auditors on behalf of the Board of Directors, and reports to the Board of
Directors on its findings. In the year under review, additional measures to oversee the activities of the external auditors
included a meeting between the Chairman of the Board of Directors and the CFO with the lead auditor to discuss the
latter’s findings.
. Information policy — AFG Arbonia-Forster-Holding AG pursues an open information policy with respect to the public
and financial markets, based on the principles set out in Art. 72 of the amended Listing Regulations of the SWX Swiss
Exchange. The annual report of AFG Arbonia-Forster-Holding AG provides information about the business, organisation
and strategy of the group. AFG’s semi-annual report contains the profit and loss account, balance sheet and cash flow
statement for the first six months of the financial year. AFG’s website at www.afg.ch provides additional information. Press
releases publicise important information at short notice.

Financial Report
Consolidated Financial Statements
AFG Arbonia-Forster-Group 68
68 Consolidated Income Statement
Financial Statements
AFG Arbonia-Forster-Holding AG 112
69 Consolidated Balance Sheet
70 Consolidated Cash Flow Statement
71 Consolidated Statement of Changes in Equity
72 Notes to the Consolidated Financial Statements
111 Report of the Group Auditors
112 Income Statement
113 Balance Sheet
114 Notes to the Financial Statements
116 Appropriation of Retained Earnings
117 Report of the Statutory Auditors
66 67

Consolidated Financial Statements AFG Arbonia-Forster-Group
Consolidated Income Statement
2005 2005 2004 2004
Note in TCHF % in TCHF %
Net revenues 27 1 123 568 100.0 1 026 567 100.0
Other operating income 13 854 1.2 9 423 0.9
Capitalised own services 2 656 0.2 2 369 0.2
Changes in inventories of semi-finished
and finished goods –1 309 0.0 –24 226 –2.4
Net operating performance 1 138 769 101.4 1 014 133 98.8
Cost of material and goods –523 132 –46.6 –437 033 –42.6
Personnel expenses –352 636 –31.4 –321 214 –31.3
Other operating expenses –145 113 –12.9 –128 527 –12.5
EBITDA 117 888 10.5 127 359 12.4
Depreciation and amortisation 32–33 –45 106 –4.0 –59 411 –5.8
EBIT 27 72 782 6.5 67 948 6.6
Financial income 42 5 890 0.5 11 862 1.2
Financial expenses 42 –15 861 –1.4 –18 975 –1.8
Profit before income tax 62 811 5.6 60 835 5.9
Income tax expense 43 –11 279 –1.0 –11 317 –1.0
Profit for the year 51 532 4.6 49 518 4.8
Earnings per share for profit attributable to the
shareholders during the year:
Earnings per bearer share in CHF 39 29.40 28.24
Earnings per registered share in CHF 39 5.88 5.65
Basic and diluted earnings are identical.
EBITDA Earnings before interest, tax, depreciation and amortisation
EBIT Earnings before interest and tax
in TCHF means in thousands of CHF
Due to the transition from Swiss GAAP FER to IFRS, previous year comparatives
have been restated. Explanations to the effect of the transition are explained in
more detail in note 49 Transition from Swiss GAAP FER to IFRS.

Consolidated Balance Sheet
Assets
68 69
2005 2005 2004 2004
Note in TCHF % in TCHF %
Cash and cash equivalents 28 104 416 113 803
Securities 5 420 5 560
Accounts receivable 29 132 982 114 540
Other current assets 23 763 19 100
Deferred expenses 7 981 10 251
Current income tax receivables 273 1 016
Inventories 30 158 842 161 816
Available-for-sale financial assets 79
Current assets 433 677 44.3 426 165 46.2
Deferred income tax assets 37 10 893 8 664
Financial assets 31 24 377 17 663
Property, plant and equipment 32 400 162 370 814
Intangible assets 33 36 726 30 155
Goodwill 33 / 34 36 917 33 158
Investment property 33 35 219 35 771
Non-current assets 544 294 55.7 496 225 53.8
Total Assets 977 971 100.0 922 390 100.0
Liabilities and Shareholders‘ Equity
Borrowings 36 6 440 13 004
Accounts payable 51 490 41 376
Other liabilities 46 613 45 209
Finance lease liabilities 295 1 539
Accruals and deferred income 48 408 47 795
Current income tax liabilities 8 489 7 070
Provisions 35 15 240 13 082
Current liabilities 176 975 18.1 169 075 18.3
Financial debt 36 351 782 351 499
Finance lease liabilities 82 304
Provisions 35 28 621 29 528
Deferred income tax liabilities 37 55 692 61 184
Employee benefit obligations 38 48 158 31 643
Non-current liabilities 484 335 49.5 474 158 51.4
Total Liabilities 661 310 67.6 643 233 69.7
Share capital 39 7 560 7 560
Share premium 38 579 38 579
Treasury shares 40 –6 845 –6 772
Other reserves 41 –10 062 –8 378
Retained earnings 287 429 248 168
Shareholders‘ equity 316 661 32.4 279 157 30.3
Total Liabilities and Shareholders‘ Equity 977 971 100.0 922 390 100.0

Consolidated Financial Statements AFG Arbonia-Forster-Group
Consolidated Cash Flow Statement
in TCHF
2005 2004
Profit for the year 51 532 49 518
Depreciation and amortisation 45 106 59 411
Non-cash transactions –17 877 –18 067
Changes in working capital (excluding cash and cash equivalents) –4 178 –3 724
Changes in current liabilities 9 233 –56 217
Net cash generated from operating activities 83 816 30 921
To investment activities
Issuance of financial assets –777 –632
Purchases of property, plant and equipment –34 062 –22 209
Purchases of intangible assets and investment property –1 973 –2 464
Acquisition of subsidiaries (net of cash acquired) –31 024 –90 501
From divestment activities
Repayment of financial assets 90 637
Proceeds from sale of property, plant and equipment,
intangible assets and investment property 1 848 333
Net cash used in investing activities –65 898 –114 836
From financing activities
Proceeds from financial debt 339 559
To financing activities
Repayment of warrant bond 1994–2004 –37 700
Dividends paid to shareholders –12 271 –4 909
Purchase of treasury shares –73 –1 090
Repayment of loans –160 134
Repayment of mortgages/other financing activities –14 383 –26 867
Net cash used in/generated from financing activities –26 727 108 859
Effects of translation differences on cash and cash equivalents –578 383
Net (decrease)/increase in cash and cash equivalents –9 387 25 327
Reconciliation of change in cash and cash equivalents
Cash and cash equivalents as of 1/1 113 803 88 476
Cash and cash equivalents as of 31/12 104 416 113 803
Change in cash and cash equivalents –9 387 25 327
Interest paid 15 189 18 087
Interest received 968 678
Income tax paid 12 364 26 434

Consolidated Statement of Changes in Equity
in TCHF
Share capital Share
premium
Retained
earnings
Treasury
shares
Other
reserves
70 71
Balance at 31/12/2003 7 560 38 579 203 559 –5 682 244 016
Profit for the year 49 518 49 518
Dividend relating to 2003 –4 909 –4 909
Treasury shares purchased –1 090 –1 090
Cash flow hedges –7 197 –7 197
Tax effect on cash flow hedges –636 –636
Currency translation differences –545 –545
Balance at 31/12/2004 7 560 38 579 248 168 –6 772 –8 378 279 157
Profit for the year 51 532 51 532
Dividend relating to 2004 –12 271 –12 271
Treasury shares purchased –73 –73
Cash flow hedges –4 185 –4 185
Tax effect on cash flow hedges 332 332
Currency translation differences 2 169 2 169
Balance at 31/12/2005 7 560 38 579 287 429 –6 845 –10 062 316 661
Total

A – Accounting principles
1 General information — AFG Arbonia-Forster-Group (AFG) is a leading supplier of building products within Europe. The Group is
divided into the four main divisions Heating Technology and Sanitary, Kitchens and Refrigeration, Steel Technology, Windows and
Doors. Manufacturing plants are located in Switzerland, Germany and the Czech Republic. AFG owns major brands such as Arbonia,
Kermi, Prolux, Forster, Piatti, Miele Kitchens and EgoKiefer and possesses a strong market position in its home markets in Switzerland
and Germany. International activities especially in Eastern Europe, Russia and the Middle and Far East will rapidly gain importance for
the Group. With its own distribution companies, agencies and partners, AFG is represented in over 80 countries worldwide.
The ultimate parent company, AFG Arbonia-Forster-Holding AG is a corporation organised under Swiss law incorporated and domiciled
at Romanshornerstrasse 4, CH-9320 Arbon. AFG Arbonia-Forster-Holding AG is listed on the SWX Swiss Exchange in Zurich under the
valour number 1213250/ISIN CH0012132509.
These consolidated financial statements have been approved for issue by the Board of Directors of AFG Arbonia-Forster-Holding AG
on 27 February 2006 and require approval from the Annual General Meeting on 21 April 2006. The publication of the consolidated
financial statements occurred on 21 March 2006 at the media and analyst conference.
2 General principles and basis of preparation — The consolidated financial statements of AFG have been prepared in accordance
with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB). As of the pre-
paration date of the consolidated financial statements, all standards issued by the IASB and all interpretations issued by the Interna-
tional Financial Reporting Interpretations Committee (IFRIC) were applied. This also applies to the comparative figures in respect of
2004.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates and assump-
tions. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. Areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements, are disclosed in note 26.
IFRS 1, First-time adoption of International Financial Reporting Standards, has been applied in preparing these financial statements.
AFG has made use of certain exemptions available under IFRS 1, which are disclosed in note 49. Reconciliations and descriptions
of the effect of the transition from Swiss GAAP FER to IFRS on the Group’s equity, net income and cash flows are explained in
note 49.
Consolidated Financial Statements AFG Arbonia-Forster-Group
Notes to the Consolidated Financial Statements
3 Reporting entity — The consolidated financial statements are based on the financial statements of the individual group companies
prepared as of 31 December. Subsidiaries are fully consolidated from the date on which control is transferred to the Group (gener-
ally where the interest in votes and share capital is more than 50%). They are deconsolidated from the date that control ceases.
Associated companies – investments between 20% to 50% of the voting shares – are reported at the equity method.

The following changes occurred in the Group:
72 73
In the financial year 2005
– As of 7 July 2005, Forster Management AG, CH-Arbon TG, was renamed to AFG Services AG.
– As of 1 September 2005, Miele Küchenwerk, DE-Warendorf was acquired via an asset deal and integrated into AFG Raumwärmer
GmbH, DE-Riesa. Immediately after the transaction, AFG Raumwärmer GmbH, DE-Riesa was renamed to Warendorfer Küchen GmbH
and its registered seat was relocated to DE-Warendorf. The property was acquired by Hermann Forster Küchen und Hausgeräte
GmbH, DE-Stuttgart. Immediately after the transaction, Hermann Forster Küchen und Hausgeräte GmbH was renamed to AFG
Warendorfer Immobilien GmbH and its registered seat was relocated to DE-Warendorf.
– As of 5 September 2005, the nominal capital of Kermi Italia S.r.l., I-Auer was reduced to EUR 15000 and its registered seat was
relocated to I-Burgstall.
– As of 2 December 2005, AFG Küchen International AG, CH-Arbon TG, was founded.
– As of 12 December 2005, AFG Küchenstudio BeLux GmbH, L-Strassen, was founded.
In the financial year 2004
– As of 1 January 2004, 100% of the shares of Spedition Gächter GmbH, CH-Arbon TG, were acquired and the company became
a corporation during 2004.
– As of 1 February 2004, 100% of the shares of Bruno Piatti AG, CH-Dietlikon ZH, were acquired.
– As of 1 May 2004, 100% of the shares of EgoKiefer AG, CH-Altstätten SG, were acquired.
– As of 30 September 2004, Forster Services AG, CH-Zurich ZH, merged with Forster Küchen- & Kühltechnik AG, CH-Arbon TG.
An overview of all group companies is included in note 50.
4 Full consolidation — In line with the full consolidation method, 100% of all balance sheet and income statement items are
included in the consolidated financial statements. Intercompany transactions, balances and unrealised gains on transactions between
group companies are eliminated.
5 Capital consolidation — Subsidiaries are fully consolidated from the date on which control is transferred to AFG. The purchase
method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value
of the assets given and liabilities incurred or assumed at the date of exchange. The excess of the cost of acquisition over the fair
value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. For acquisitions prior to 1 January 2004, no
goodwill was capitalised.
If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in
the income statement.
Companies which are sold are deconsolidated from the date that control ceases. The difference between the consideration received
and the net assets is recognised in the income statement as other operating income/expenses.

B – Summary of significant accounting policies
6 Significant accounting policies — The principal accounting policies applied in the preparation of these consolidated financial
statements are set out below, from notes 7 to 26. These policies have been consistently applied to all the years presented, unless
otherwise stated. Balance sheet items are generally stated at cost as modified by the revaluation of financial instruments at fair value
through profit or loss. Borrowing costs are not capitalised.
7 Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each group company are measured using the currency of the primary economic environ-
ment in which the company operates (the functional currency). The consolidated financial statements are presented in Swiss Francs
(CHF).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the dates of the trans-
actions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except
when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.
Group companies
The results and financial position of all the group companies that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. Income and
expenses for each income statement as well as the cash flow statements are translated at average exchange rates. All resulting
exchange differences are recognised as a separate component of equity.
Exchange differences arising on intercompany loans of an equity nature that essentially form part of the company’s net investment
in the foreign entity are classified as equity.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign
entity and are translated at the closing rate.
The following foreign currency rates have been applied:
Currency Unit
Consolidated Financial Statements AFG Arbonia-Forster-Group
Year end rate
2005
Average rate Year end rate
2004
Average rate
EUR 1 1.5570 1.5485 1.5438 1.5441
GBP 1 2.2702 2.2648 2.1830 2.2760
USD 1 1.3156 1.2461 1.1321 1.2430
CZK 100 5.3680 5.1996 5.0675 4.8398
PLN 100 40.3389 38.5113 37.8475 34.0846

74 75
8 Cash and cash equivalents — Cash and cash equivalents include cash on hand, deposits held at call with post and banks, other
short-term highly liquid investments with original maturities not exceeding three months.
9 Securities — Securities within current assets include marketable and easily disposable securities including time deposits with
maturities of between four to twelve months. Securities held for trading are carried at fair value through profit or loss, based on
market prices obtained from the banks. Purchases and sales are recognised on the trade date – the date on which the Group commits
to purchase or sell the security.
Time deposits with maturities of between four to twelve months are carried at face value. As of the balance sheet date, the Group
did not hold any securities, such as bonds or similar items, with the intention of holding to maturity.
10 Receivables — Accounts receivable and other current assets are recognised at net realisable value. A valuation allowance of
accounts receivable is established when there is objective evidence that AFG will not be able to collect all amounts due. Other current
assets include WIR-credits, which are carried at face value less an appropriate provision.
11 Inventories — Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average
cost method based on normal operating capacity. It excludes borrowing costs. Net realisable value is the estimated selling price in
the ordinary course of business, less applicable variable selling expenses. Claimed cash discounts are treated as a reduction of cost.
Items with a low turn-over rate are depreciated and obsolete items are fully written off.
12 Financial assets — Financial assets are initially recognised at cost plus transaction costs. Purchases and sales are recognised on
the trade date – the date on which AFG commits to purchase or sell the security. The classification depends on the purpose for which
the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and reevalu-
ates the designation at every reporting date.
Financial assets held for trading are measured subsequently at fair value through profit or loss as financial income/expenses.
Held-to-maturity financial assets are carried at amortised cost using the effective interest method.
Available-for-sale financial assets are subsequently carried at fair value and changes in the fair value are recognised in equity. When
securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included
in the income statement as financial income/expenses.
Deferred tax assets and capitalised pension surplus are measured at nominal value.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and AFG has transfer-
red substantially all risk and rewards of ownership.
AFG assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is
impaired.

13 Property, plant and equipment — Land is stated at cost. Buildings, plant, machinery and other equipment are stated at cost
less depreciation. Depreciation is calculated using the straight-line method based on estimated useful lives as stipulated under
note 17.
An asset’s carrying amount is written down to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount (see also note 16). Impairments are separately disclosed under accumulated depreciation. Repair and mainte-
nance costs are included in the asset’s carrying amount or recognised as a separate asset, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
14 Intangible assets — Intangible assets include goodwill, which represents the excess of the cost of an acquisition over the fair
value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Impairment on goodwill
(see note 16) is separately disclosed under accumulated impairment losses.
Intangible assets with a finite useful life are amortised. They are measured at cost less accumulated amortisation.
Research and development costs are expensed when incurred, if specific criteria for recognition as intangible assets are not met.
15 Investment property — Investment property, principally comprising land and buildings, is held for long-term rental yields or
appreciation and is predominantly not occupied by AFG. Investment property is carried at cost less accumulated depreciation and any
accumulated impairment losses. Depreciation is calculated using the straight-line method.
The fair value of investment property has been determined using the discounted cash flow method. Based on attainable net rental
income (gross rental income minus operating costs and future refurbishment costs) the discounted cash flows have been calculated
for the next 10 years with a residual value for the time thereafter. The fair value of freehold land has been determined by considering
current local market conditions. The fair value of land with buildings and freehold land of newly acquired subsidiaries has been
determined by external valuers. The fair value of certain other freehold land has been estimated internally.
16 Impairment of assets — Assets subject to amortisation and depreciation, such as property, plant and equipment, other non-
current assets and intangible assets with a definite useful life are reviewed for impairment whenever events or changes in circum-
stances indicate that the carrying amount may not be recoverable. Assets that have an indefinite useful life, such as goodwill, are
tested annually for impairment. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is based on discounted future cash flows of the most recent financial forecasts. The
applied discount rate is a pre-tax rate using the weighted average cost of capital (WACC) method. For intangible assets with an
indefinite useful life, a perpetual growth rate is implied. For the purpose of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating units).
The impairment review of other non-current assets other than goodwill are based on value-in-use considerations. Land and buildings
(investment property and other property) are generally calculated by external valuers, using the discounted cash flow method. Other
non-current asset estimates are based on internal criteria.
Consolidated Financial Statements AFG Arbonia-Forster-Group

17 Estimated useful lives
76 77
Asset categories Useful lives
(in years)
Office buildings 35–50
Factory buildings 25–40
Investment properties – buildings 25–50
Intangible assets from business acquisitions 10–20
Production machinery 8–20
Transport and storage equipment 8–15
Vehicles 5–10
Tools and moulds 5
Office furniture and equipment up to 5
IT hardware up to 5
Intangible assets (mainly IT software) up to 4
18 Provisions — Provisions are recognised only when AFG has a present legal or constructive obligation as a result of past events,
the amount has been reliably estimated and it is more likely than not that an outflow of resources will be required to settle the
obligation.
Provisions for restructuring are only recognised when costs for such a program can be reliably estimated by virtue of a detailed formal
plan and AFG has a legal or constructive obligation or has raised a valid expectation in those affected.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in
provision due to passage of time is recognised as interest expense.
19 Employee benefit obligations — AFG manages various pension plans within Switzerland and abroad. The plans are funded
through payments to trustee-administered funds or insurance companies or are unfunded arrangements.
Based on their characteristics the pension plans qualify under IAS 19 as defined benefit plans. A defined benefit plan is a pension
plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more
factors such as age, years of service and compensation.
The liability recognised in the balance sheet to pay future retirement benefits is determined using the projected unit credit method,
which is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with
adjustments for unrecognised actuarial gains or losses and past service costs. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds. Actuarial valua-
tions are carried out on a regular basis by independent actuaries.
Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions in excess of the greater of 10%
of the value of plan asset or defined benefit obligation are charged or credited to the income statement over the employees’ expected
average remaining working lives.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Consolidated Financial Statements AFG Arbonia-Forster-Group
20 Non-current financial debt — Financial debts are classified as non-current if AFG has an unconditional right to defer settlement
of the liability for at least 12 months after the balance sheet date.
Non-current financial debts are initially recognised at fair value, net of transaction costs incurred. They are subsequently stated at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income
statement over the period of the financial debt, using the effective interest method.
21 Leases — Leases of property, plant and equipment where AFG has substantially all the risk and rewards of ownership are classified
as finance leases. Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased asset and the
present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in finance
lease liabilities. Property, plant and equipment acquired under finance leases is depreciated over the useful life of the asset.
Payments made under operating leases are charged to the income statement as other operating expenses.
22 Deferred income tax — Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income
tax is determined using tax rates that have been enacted by the balance sheet date.
Deferred income tax assets including unused tax loss carryforwards, are recognised to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilised.
The book value of capitalised deferred income tax assets is assessed for impairment at each balance sheet date and a loss is recognised
in case of insufficient future taxable profit.
23 Shareholders’ equity — The share premium relates to the Company going public back in 1988.
24 Revenue recognition and other income — Revenue is recognised when risks and rewards of ownership have been transferred
to the buyer.
25 Financial risk management — The Group has written policies in place, covering areas such as cash management and sourcing
of short and long-term borrowings. The management of excess liquidity and the long-term group financing are carried out by a
central treasury department in order to optimise group funds. For this reason AFG ensures a cost-efficient capital funding as well as
matching cash needs with short-term settlement commitments.
Foreign exchange risk — Foreign currency translation differences arise from transactions executed in foreign currencies but settled
in local currencies. To manage such foreign exchange risks, entities in the Group partially use forward currency contracts as defined
by specific written policies.

78 79
The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. The
translation of foreign currencies impacts consolidated profit and shareholders’ equity. The major risk of foreign currency translation
for the Group is the Euro. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily
through borrowings denominated in the relevant foreign currencies.
Credit risk — Credit risk is the Group’s exposure that arises if a counterparty is not willing or capable of fulfilling its commitment to
settle the liability and ultimately the Group incurs a loss.
The credit risk relates primarily to accounts receivable. Due to the broad customer base and the possibility of creating specific
collaterals, the credit risk exposure remains confined. AFG has policies in place to minimise solvency and credit risk. Exposure on
outstanding accounts receivable is regularly monitored and actions are taken when deviations from the arrangements have been
identified. An appropriate allowance has been recorded in the balance sheet for the credit risk based on currently available knowledge.
Interest rate risk — Interest risks arise from the fluctuation of interest rates, which could have an adverse impact on the Group’s
net assets and results. Fluctuations of interest rates of interest-bearing assets and liabilities are impacting on the financial income and
financial expenses. As described under market risks, interest rate fluctuations could have an impact on the fair value of certain financial
assets, financial liabilities and financial instruments. The interest rate risk management of long-term borrowings is managed
centrally. For long-term borrowings in other than the reporting currency, the Group enters occasionally into interest rate swaps.
Liquidity risk — The liquidity is permanently monitored by the group treasury department. Based on cash flow projections, the
Group anticipates developments on the net cash position and takes early steps in case of over- and underfunding respectively.
Market risk — Fluctuations of the fair value of certain financial assets, financial liabilities and financial instruments could have an
impact on the Group’s net assets and results. Changes in the fair value of long-term investments, which are kept by the Group for
strategic reasons, do not impact, except for a permanent impairment, the book value of the investment.
Derivative instruments — Derivative instruments such as forward foreign exchange contracts, interest rate swaps or a combination
of both are initially recognised at cost and subsequently remeasured at their fair value. The fair value is recognised in the balance
sheet in the same position as the hedged item.
The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and
if so, the nature of the item being hedged. The Group designates certain derivatives as a highly probable forecast transaction (cash
flow hedge).
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well
as its risk management objectives and strategy for undertaking various hedge transactions. The Group also documents its assessment,
both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective
in offsetting changes in fair values or cash flows of hedged items.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges along with the
related changes in deferred taxes are recognised in equity. The gain or loss relating to the ineffective portion as well as all other
hedges are immediately recognised in the income statement.
Fair value estimation
The fair market value of financial instruments traded in active markets (such as publicly traded derivatives and securities) is based on
quoted market prices at the balance sheet date. The quoted market price used for financial assets is the current bid price, the
appropriate quoted market price for financial liabilities is the current asking price.
The nominal value less estimated allowance of accounts receivable is assumed to approximate their fair value. The nominal value of
accounts payables is assumed to approximate their fair value. The fair value of financial liabilities is estimated by discounting the
future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

26 Critical accounting estimates and assumptions — All estimates and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the circum-
stances. AFG makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom
equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below.
Estimated impairment of goodwill — The Group tests annually whether goodwill has suffered any impairment, in accordance with
the accounting policy stated in note 16. The recoverable amounts of cash-generating units have been determined based on value-
in-use calculations. These calculations require the use of estimates (see note 33).
C – Explanation to certain positions of the consolidated financial statements
27 Segment information — AFG is organised into four main business divisions plus corporate services.
Heating and Sanitary Division — As the leading European manufacturer of radiators, surface heating systems and shower stalls,
with plants in Germany, Switzerland and the Czech Republic, Heating and Sanitary is the largest division of AFG. Outside its domes-
tic markets of Switzerland and Germany, it is represented by distribution companies in France, Great Britain, Austria, Poland and the
Czech Republic. The division offers a comprehensive range of heating technology products and shower stalls under the brand names
Arbonia, Kermi and Prolux.
Kitchens and Refrigeration Division — The Kitchens and Refrigeration division unifies brand names such as Forster kitchens,
Forster refrigerators, Miele Kitchens and Piatti under one roof. Piatti and Forster kitchens are together the leading manufacturers and
suppliers of kitchens in Switzerland. Miele Kitchens is represented in approximately 50 countries worldwide. Despite operating in
different market segments, the brands complement each other in terms of materials and design. Miele Kitchens and Piatti offer a
broad range of materials whereas Forster is concentrating on steel kitchens.
Steel Technology Division — The Steel Technology division operates in two business units: precision steel tubing and profile sys-
tems (in steel and stainless steel). The precision steel tubing unit offers a broad range of products to a variety of industries for the
production of heating technology, furniture, automotive parts, machines, etc. The slightly smaller profile systems unit, in terms of its
gross sales volume, supplies the construction industry with a range of semi-finished products used in fire/smoke protection and se-
curity applications in public, commercial and industrial buildings. Both units develop and produce all their products and services in
Switzerland.
Consolidated Financial Statements AFG Arbonia-Forster-Group
Windows and Doors Division — The Windows and Doors division with the brand EgoKiefer is Switzerland’s leading provider of
windows and doors and develops, produces and sells a full range of these products. Its products, made of materials such as wood,
synthetic or aluminium are used in a variety of areas, including thermal insulation, soundproofing, security and fire protection.
Corporate Services — Corporate Services consists of service and transportation companies, providing their services to group com-
panies and third parties. The results and balances of Corporate Services are included in the column Others and Eliminations.

Primary reporting format – business divisions
Financial year 2004
Balance at 31/12/2004 resp.
in TCHF
Heating
and
Sanitary
Kitchens
and
Refrigeration
Steel
Technology
Windows
and
Doors
Others
and
Eliminations
80 81
Sales with third parties 540 647 205 039 108 637 163 349 8 895 1 026 567
Sales with other divisions 35 37 20 983 –21 055
Net revenues 540 682 205 076 129 620 163 349 –12 160 1 026 567
EBITDA 68 838 17 396 17 759 26 444 –3 078 127 359
in % of net revenues 12.7 8.5 13.7 16.2 12.4
EBIT 43 044 4 452 12 945 13 941 –6 434 67 948
in % of net revenues 8.0 2.2 10.0 8.5 6.6
Financial income 11 862
Financial expenses –18 975
Profit before income tax 60 835
Income tax expense –11 317
Profit for the year 49 518
Average number of employees 2 711 635 308 849 105 4 608
Division operating assets 341 203 118 328 119 061 137 237 715 829
Reconciliation 206 561 206 561
Consolidated assets 922 390
Division operating liabilities 120 809 31 519 7 804 41 050 201 182
Reconciliation 442 051 442 051
Consolidated liabilities 643 233
Capital expenditures
Property, plant and equipment 15 183 35 412 2 479 61 710 2 684 117 468
Intangible assets 287 9 695 34 64 489 2 255 76 760
Total 15 470 45 107 2 513 126 199 4 939 194 228
Depreciation and amortisation
Property, plant and equipment 23 660 8 422 4 737 3 731 1 422 41 972
Intangible assets 1 193 4 473 77 8 773 1 592 16 108
Total 24 853 12 895 4 814 12 504 3 014 58 080
Non-cash transactions except
depreciation and amortisation 6 351 5 822 455 2 121 4 406
Total

The reconciliation of consolidated assets for the financial year 2004 includes, in the column Others and Eliminations, the goodwill of
CHF 33 million. In the position depreciation and amortisation of the column Others and Eliminations, an impairment charge of CHF
1.5 million is included under intangible assets.
Financial year 2005
Balance at 31/12/2005 resp.
in TCHF
Heating
and
Sanitary
Kitchens
and
Refrigeration
Steel
Technology
Windows
and
Doors
Others
and
Eliminations
Sales with third parties 530 899 238 829 123 292 220 525 10 023 1 123 568
Sales with other divisions 37 19 23 671 41 –23 768
Net revenues 530 936 238 848 146 963 220 566 –13 745 1 123 568
EBITDA 57 661 19 436 16 636 26 629 –2 474 117 888
in % of net revenues 10.9 8.1 11.3 12.1 10.5
EBIT 35 725 9 299 11 255 20 451 –3 948 72 782
in % of net revenues 6.7 3.9 7.7 9.3 6.5
Financial income 5 890
Financial expenses –15 861
Profit before income tax 62 811
Income tax expense –11 279
Profit for the year 51 532
Average number of employees 2 619 886 315 871 112 4 803
Division operating assets 328 108 171 028 127 194 147 202 773 532
Reconciliation 204 439 204 439
Consolidated assets 977 971
Division operating liabilities 119 874 56 997 14 575 43 866 235 312
Reconciliation 425 998 425 998
Consolidated liabilities 661 310
Capital expenditures
Property, plant and equipment 14 130 31 196 9 620 8 910 2 503 66 359
Intangible assets 137 12 854 193 898 623 14 705
Total 14 267 44 050 9 813 9 808 3 126 81 064
Depreciation and amortisation
Property, plant and equipment 20 479 8 151 5 291 4 614 986 39 521
Intangible assets 905 1 986 91 1 564 394 4 940
Total 21 384 10 137 5 382 6 178 1 380 44 461
Non-cash transactions except
Consolidated Financial Statements AFG Arbonia-Forster-Group
depreciation and amortisation 3 350 5 319 3 349 1 605 1 597
Total

82 83
Sales are comprised of net revenues from sales and services. Net revenues comprise rental income from investment properties in the
amount of CHF 1.8 million (2004: CHF 1.0 million). Related direct operating expenses were CHF 0.6 million (2004: CHF 0.7 million)
and are included within EBITDA.
Secondary reporting format – geographical segments
Financial year 2004
Balance at 31/12/2004 resp.
in TCHF
Switzerland Germany Other
countries
Net revenues by division 422 805 404 487 199 275 1 026 567
Heating and Sanitary 33 870 358 291 148 486 540 647
Kitchens and Refrigeration 199 986 2 389 2 664 205 039
Steel Technology 23 180 38 058 47 399 108 637
Windows and Doors 162 624 725 163 349
Others and Eliminations 3 145 5 749 1 8 895
Consolidated assets 608 965 225 681 87 744 922 390
Capital expenditures
Property, plant and equipment 102 673 8 543 6 252 117 468
Intangible assets 76 502 138 120 76 760
Total 179 175 8 681 6 372 194 228
Financial year 2005
Balance at 31/12/2005 resp.
in TCHF
Switzerland Germany Other
countries
Net revenues by division 505 646 396 568 221 354 1 123 568
Heating and Sanitary 38 775 341 538 150 586 530 899
Kitchens and Refrigeration 216 712 10 136 11 981 238 829
Steel Technology 23 859 41 546 57 887 123 292
Windows and Doors 219 835 690 220 525
Others and Eliminations 6 465 3 348 210 10 023
Consolidated assets 613 691 275 612 88 668 977 971
Capital expenditures
Property, plant and equipment 24 767 39 549 2 043 66 359
Intangible assets 1 824 12 799 82 14 705
Total 26 591 52 348 2 125 81 064
Division results include inter-divisional transfers. Such transactions are entered into under normal commercial terms and conditions
that would also be available to unrelated third parties. These transfers or transactions are eliminated on consolidation.
Total
Total

28 Cash and cash equivalents — Cash and cash equivalents are denominated in the following currencies:
29 Accounts receivable
30 Inventories
A provision in the amount of CHF 19.9 million (2004: CHF 16.7 million) has been provided for obsolete and slow-moving items and
is deducted from inventories. Inventories written down to net realisable value were CHF 0.7 million (2004: CHF 0.4 million). The
write-down of CHF 0.3 million (2004: CHF 0.2 million) has been recognised as an expense of cost of material and goods. Unrealised
gains between group companies are eliminated.
31 Financial assets
Consolidated Financial Statements AFG Arbonia-Forster-Group
in TCHF 31/12/2005 31/12/2004
CHF 68 974 74 527
EUR 27 560 17 656
USD 1 723 14 312
Other currencies 6 159 7 308
Total 104 416 113 803
in TCHF 31/12/2005 31/12/2004
Accounts receivable 142 471 123 470
Allowance for accounts receivable –9 489 –8 930
Total 132 982 114 540
in TCHF 31/12/2005 31/12/2004
Raw material and supplies 57 277 71 440
Semi-finished and finished goods 88 795 77 036
Goods purchased for resale 12 625 13 262
Prepayments 145 78
Total 158 842 161 816
in TCHF 31/12/2005 31/12/2004
Investments in associates > 20% < 50% 386 265
Other financial assets 60 51
Loans 1 229 570
Capitalised pension surplus 22 702 16 777
Total 24 377 17 663

32 Property, plant and equipment
in TCHF
Land
and
buildings
Plant
and
machinery
Other
equipment
Prepayments
and assets
under
construction
84 85
Net book value at 01/01/2004 161 420 98 630 18 832 15 638 294 520
Cost
Balance at 01/01/2004 307 388 444 686 80 858 15 638 848 570
Foreign exchange differences –59 –79 –211 716 367
Acquisition of subsidiaries 62 981 22 950 6 682 92 613
Additions 2 758 13 130 5 994 2 971 24 853
Disposals –1 468 –22 652 –8 898 –149 –33 167
Reclassifications 5 902 10 180 –1 657 –14 852 –427
Balance at 31/12/2004 377 502 468 215 82 768 4 324 932 809
Foreign exchange differences 2 897 4 804 673 113 8 487
Acquisition of subsidiaries 20 334 7 021 2 172 29 527
Additions 5 962 7 491 5 191 18 188 36 832
Disposals –495 –8 500 –5 523 –14 518
Reclassifications 530 5 870 628 –7 607 –579
Balance at 31/12/2005 406 730 484 901 85 909 15 018 992 558
Accumulated depreciation
Balance at 01/01/2004 145 968 346 056 62 026 554 050
Foreign exchange differences –360 –342 –205 3 –904
Depreciation 9 489 22 831 9 609 44 41 973
Disposals –1 281 –22 412 –9 201 –32 894
Reclassifications –215 862 –877 –230
Balance at 31/12/2004 153 601 346 995 61 352 47 561 995
Foreign exchange differences 748 3 295 506 3 4 552
Depreciation 10 651 21 342 7 517 11 39 521
Disposals –275 –8 404 –4 994 –13 673
Reclassifications 1 1
Balance at 31/12/2005 164 725 363 228 64 382 61 592 396
Net book value at 31/12/2004 223 901 121 220 21 416 4 277 370 814
Net book value at 31/12/2005 242 005 121 673 21 527 14 957 400 162
Value of leased assets contained in other equipment 541
Previous year 1 092
Total

Future aggregate minimum lease payments — The Group has the following future minimum lease payments under non-cancel-
lable leases:
At 31/12/2004 in TCHF
The consolidated income statement contains lease expenses of CHF 10.7 million (2004: CHF 6.3 million).
As of the balance sheet dates, the Group had entered into the following capital commitments for the purchase of property, plant and
equipment and intangible assets:
Operating
Leasing
The fire insurance value of property, plant and equipment is as follows:
Financial
Leasing
within 1 year 3 631 1 582 5 213
between 2 and 5 years 8 959 347 9 306
after 5 years 1 376 1 376
Total 13 966 1 929 15 895
Interest charge –86
Present value of finance leases 1 843
At 31/12/2005
Consolidated Financial Statements AFG Arbonia-Forster-Group
within 1 year 4 049 344 4 393
between 2 and 5 years 9 168 55 9 223
after 5 years 878 878
Total 14 095 399 14 494
Interest charge –22
Present value of finance leases 377
in TCHF 31/12/2005 31/12/2004
Property, plant and equipment 4 341 9 349
Intangible assets 330 876
Total 4 671 10 225
in TCHF 31/12/2005 31/12/2004
Buildings 550 710 432 227
Plant and machinery 805 569 564 609
Total 1 356 279 996 836
Land and buildings with a carrying amount of CHF 32 million (2004: CHF 37.9 million) are pledged to secure mortgages.
Total

33 Intangible assets and investment property
in TCHF
Other
intangible
assets
Goodwill Investment
property –
land
Investment
property –
buildings
86 87
Net book value at 01/01/2004 2 611 14 049 6 268 22 928
Cost
Balance at 01/01/2004 13 516 25 149 18 761 57 426
Foreign exchange differences –13 –31 –44
Acquisition of subsidiaries 39 669 16 419 79 56 167
Additions 2 432 34 658 33 37 123
Disposals –627 –79 –706
Reclassifications 427 427
Balance at 31/12/2004 55 404 34 658 41 568 18 763 150 393
Foreign exchange differences 153 14 2 27 196
Acquisition of subsidiaries 8 999 8 999
Additions 1 961 3 745 13 5 719
Disposals –302 –302
Reclassifications 507 72 579
Balance at 31/12/2005 66 722 38 417 41 570 18 875 165 584
Accumulated amortisation/depreciation
Balance at 01/01/2004 10 905 11 100 12 493 34 498
Foreign exchange differences –23 –23
Amortisation/depreciation 14 608 990 15 598
Impairment 1 500 1 500
Disposals –494 –494
Reclassifications 230 230
Balance at 31/12/2004 25 249 1 500 11 100 13 460 51 309
Foreign exchange differences 110 1 20 131
Amortisation/depreciation 4 940 645 5 585
Disposals –302 –302
Reclassifications –1 –1
Balance at 31/12/2005 29 996 1 500 11 101 14 125 56 722
Net book value at 31/12/2004 30 155 33 158 30 468 5 303 99 084
Net book value at 31/12/2005 36 726 36 917 30 469 4 750 108 862
Fair value of investment properties at 31/12/2004 38 766
Fair value of investment properties at 31/12/2005 38 766
Total

Expenses for research and development in the amount of CHF 13.8 million (2004: CHF 13.9 million) have been charged to the income
statement, since they did not fulfil the capitalisation criteria.
All intangible assets included in the column Other intangible assets have been purchased or acquired. No reversal of a previously
recognised impairment loss has taken place.
Goodwill from business combinations is allocated to the Group’s cash-generating units (CGUs) EgoKiefer, Spedition Gächter and
Warendorfer Unternehmen. The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations
use cash flow projections based on financial budgets approved by management covering a five year period. Cash flows beyond the
five year period are extrapolated using the estimated growth rates stated below.
Key assumptions used for
value-in-use calculations
Budgeted gross margins were determined based on past performance and expectations for the market development. The growth
rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks
relating to the relevant CGUs.
Consolidated Financial Statements AFG Arbonia-Forster-Group
in %
The carrying amounts of goodwill by CGU are presented below:
Warendorfer
Unternehmen
Spedition
Gächter
EgoKiefer
Budgeted gross margin 73.7 42.3 62.9
Growth rate 1.0 1.0 1.0
Discount rate 14.0 17.3 10.9
in TCHF
Warendorfer
Unternehmen
Spedition
Gächter
EgoKiefer
At 31/12/2004 0 33 158
At 31/12/2005 3 759 0 33 158

88 89
34 Business combinations — The following fair value of assets and liabilities have arisen from the acquisitions as mentioned under
note 3:
Assets
in TCHF
Warendorfer
Unternehmen
Total
2005
Spedition
Gächter
Piatti
Küchen
EgoKiefer Total
2004
Cash and cash equivalents 112 1 105 1 232 2 449
Accounts receivable 5 977 5 977 637 18 436 15 326 34 399
Other current assets 513 513 48 5 485 5 475 11 008
Inventories 3 914 3 914 30 10 292 30 676 40 998
Deferred income tax assets 2 420 2 420
Financial assets 98 98 339 2 383 9 889 12 611
Property, plant and equipment 29 527 29 527 2 036 32 093 58 484 92 613
Intangible assets 8 999 8 999 9 419 30 251 39 670
Investment property 16 419 79 16 498
Total Assets 51 448 51 448 3 202 95 632 151 412 250 246
Liabilities
Borrowings 264 1 753 11 527 13 544
Accounts payable 2 663 2 663 1 414 37 247 27 009 65 670
Other liabilities 206 1 832 2 038
Accruals and deferred income 2 496 2 496 20 3 581 9 434 13 035
Financial debt 1 842 29 800 27 715 59 357
Provisions 3 245 3 245 3 137 2 110 5 247
Deferred income tax liabilities 1 077 19 284 20 361
Employee benefit obligations 15 765 15 765 1 4 867 2 585 7 453
Total Liabilities 24 169 24 169 3 747 83 294 99 664 186 705
Net assets acquired 27 279 27 279 –545 12 338 51 748 63 541
Goodwill/negative goodwill 3 745 3 745 1 500 –4 950 33 158 29 708
Computed purchase
consideration paid 31 024 31 024 955 7 388 84 906 93 249
Purchase consideration
settled in cash
were as follows:
Cash outflow on acquisitions 31 024 31 024 900 7 050 85 000 92 950
Net cash outflows
were as follows: 2005 2004
Cash outflow on acquisitions 31 024 92 950
Cash and cash equivalents
in subsidiaries acquired
–2 449
Net cash outflow on acquisitions 31 024 90 501

External independent valuers and actuaries have been engaged for the determination of the fair values of land, buildings, investment
properties and the employee benefit obligations.
The identified negative goodwill from the acquisition of Piatti has been directly recognised in the 2004 income statement as financial
income. The acquired businesses contributed the following results to the Group from the date of acquisition:
Due to significant differences in accounting policies used by the acquired businesses prior to their acquisition, it has been impractical to
produce twelve-month revenues and results in conformity with IFRS.
35 Provisions
Consolidated Financial Statements AFG Arbonia-Forster-Group
in TCHF
Warendorfer
Unternehmen
Spedition
Gächter
Piatti
Küchen
EgoKiefer Total
Profit/(loss) contributed to the Group in 2004 –114 –7 056 9 933 2 763
Profit/(loss) contributed to the Group in 2005 –707 –707
in TCHF
Warranty Personnel Other
provisions
Balance at 1/1/2004 20 569 6 819 11 874 39 262
Foreign exchange differences –168 –68 –91 –327
Acquisition of subsidiaries 2 743 2 504 5 247
Additional provisions 12 232 5 776 1 692 19 700
Used during the year –10 749 –636 –6 120 –17 505
Unused amounts reversed –1 449 –139 –2 179 –3 767
Balance at 31/12/2004 23 178 11 752 7 680 42 610
Foreign exchange differences 155 112 32 299
Acquisition of subsidiaries 117 3 105 23 3 245
Additional provisions 12 815 2 987 2 216 18 018
Used during the year –12 067 –1 454 –1 250 –14 771
Unused amounts reversed –1 594 –410 –3 536 –5 540
Balance at 31/12/2005 22 604 16 092 5 165 43 861
thereof current at 31/12/2004 11 132 525 1 425 13 082
thereof current at 31/12/2005 11 758 64 3 418 15 240
Total

The current provision is expected to be fully utilised during 2006. The non-current provision is expected to be utilised as follows:
90 91
Warranty — Warranty provisions are assessed for each order individually. In case of a high volume of orders, such an individual
assessment might be impractical and standard rates are applied based on past experience.
Personnel — Personnel provisions comprise mainly a provision for partial retirement.
Other provisions — Other provisions include a restructuring provision and provisions for highly likely additional charges imposed
on indirect taxes.
in TCHF
36 Borrowings and non-current financial debt — On 2 December 2004, AFG Arbonia-Forster-Holding AG completed a private
placement (US PP) with a group of US investors worth USD 160 million, of which 125 million were paid out in US dollars and 27.6
million in Euros. The placement, which is largely hedged against interest and currency risk, is divided into various US dollar and Euro
tranches with terms of between four and ten years.
The non-current financial debt is comprised of the following:
Warranty Personnel Other
provisions
between 2 and 5 years 10 844 3 434 1 725 16 003
after 5 years 12 595 23 12 618
in TCHF
31/12/2005 31/12/2004
Mortgages 6 350
Bond 148 978 148 767
US private placement 206 229 182 955
Swap USD –3 499 8 301
Swap EUR 74 5 126
Total 351 782 351 499
Total

Consolidated Financial Statements AFG Arbonia-Forster-Group
As of the 2005 balance sheet date, mortgages have been reclassified from non-current financial debt to current borrowings since
their redemption will occur in 2006. The US private placement includes covenants covering key ratios such as minimum net worth,
interest coverage ratio and leverage ratio. In the event of non-compliance, the note holders may at any time at their option, declare
the notes then outstanding to be immediately due and payable. AFG was in compliance with the covenants under Swiss GAAP FER
for 2004. AFG complies with the covenants for 2005 on the basis of the consolidated financial statements prepared for the first time
under IFRS, assuming the negotiated covenants under Swiss GAAP FER still remain valid.
The maturities of the non-current financial debts are as follows:
The effective interest rates at the balance sheet date were as follows:
The breakdown of interest bearing liabilities by currency were as follows:
31/12/2005 31/12/2004
between 1 and 2 years 6 350
between 2 and 5 years 167 195 12 042
after 5 years 184 587 333 107
Total 351 782 351 499
31/12/2004
Borrowings 2.8%
As of the balance sheet date, AFG had CHF 134.4 million (2004: CHF 128.5 million) of undrawn credit facilities available.
in TCHF
CHF EUR USD
Financial debt 3.5% 5.1% 5.9% 1)
31/12/2005
Borrowings 2.7%
Financial debt 3.5% 5.1% 5.9% 1)
1) Interest paid is significantly lower due to the cross currency swaps.
in TCHF
31/12/2005 31/12/2004
CHF 155 418 168 121
EUR 42 685 42 291
USD 160 119 154 091
Total 358 222 364 503

92 93
37 Deferred income taxes — Deferred tax assets and liabilities arise due to differences between the group valuation and tax valu-
ation in the following balance sheet items:
Assets
in TCHF
Deferred tax
assets
31/12/2005 31/12/2004
Deferred tax
liabilities
Deferred tax
assets
Deferred tax
liabilities
Accounts receivable 36 1 143 71 1 132
Other current assets 62 32 62
Inventories 895 8 307 992 9 468
Non-current financial assets 344 6 521 347 6 608
Property, plant and equipment 2 462 26 193 3 582 29 433
Intangible assets 6 664 43 5 081
Investment property 594 3 305 1 019 4 790
Liabilities
Current liabilities 127 211 744 808
Non-current liabilities 888 563 102
Current and non-current provisions 2 188 7 750 1 659 8 248
Employee benefit obligations 6 010 3 735
Treasury shares 461 455
Deferred taxes from timing differences 14 005 60 156 13 242 65 732
Offset of deferred tax assets and liabilities –4 464 –4 464 –4 548 –4 548
Net deferred taxes from timing differences 9 541 55 692 8 694 61 184
Deferred tax assets derived from tax loss carryforwards 6 634 7 084
Valuation allowance –5 282 –7 114
Total deferred taxes 10 893 55 692 8 664 61 184
Deferred income tax assets are recognised as tax loss carryforwards and temporary differences to the extent that the realisation of
the related tax benefit through future taxable profits is probable.

Activity in the deferred income tax account is as follows:
Unrecognised tax loss carryforwards
in TCHF
31/12/2005 31/12/2004
Tax loss carryforwards 28 680 27 213
thereof recognised as deferred taxes –6 886 –392
Unused tax loss carryforwards 21 794 26 821
Portion expiring:
Consolidated Financial Statements AFG Arbonia-Forster-Group
within 1 year 370
between 2 and 5 years 15 231 21 590
after 5 years 13 079 5 623
Total 28 680 27 213
Tax effect on unrecognised tax loss carryforwards 5 282 7 114
38 Employee benefit obligations — The following amounts are included in the consolidated financial statements:
in TCHF
2005 2004
Balance at 01/01 52 520 35 126
Acquisition of subsidiaries –2 420 20 361
Charged to shareholders‘ equity –332 636
Credited to the income statement –4 969 –3 603
Balance at 31/12 44 799 52 520
in TCHF
31/12/2005 31/12/2004
Present value of funded obligations 297 937 289 304
Fair value of plan assets 335 625 325 062
Overfunding –37 688 –35 758
Present value of unfunded obligations 48 648 26 789
Unrecognised actuarial losses –17 029 –2 354
Pension surplus not capitalised based on IAS 19.58 b 31 525 26 189
Liability (net) recognised in the balance sheet 25 456 14 866
thereof recorded as employee benefit obligations 48 158 31 643
thereof contained in financial assets –22 702 –16 777

The amounts recognised in the income statement under personnel expenses are as follows:
in TCHF
94 95
2005 2004
Current service cost 16 863 16 534
Employee contributions –8 568 –7 801
Interest cost 11 592 11 056
Expected net return on plan assets –14 628 –13 946
Past service cost 370
Actuarial gains/losses recognised during the year –4 992 838
Pension surplus not capitalised 5 334 2 391
Net charges for defined benefit plans 5 971 9 072
The movement in the net liability recognised in the balance sheet is as follows:
2005 2004
Balance at 01/01 14 866 19 994
Foreign exchange differences 339 624
Acquisition of subsidiaries 15 765 –4 042
Total expenses charged to the income statement 5 971 9 072
Contributions paid by the employer –11 485 –10 782
Balance at 31/12 25 456 14 866
2005 2004
Actual return on plan assets 17 212 8 510
The principal actuarial assumptions used were as follows:
Weighted average
2005 2004
Discount rate 3.5% 3.7%
Expected return on plan assets 4.5% 4.5%
Future salary increases 1.6% 1.6%
Future pension increases 0.8% 0.8%
Expected employment in years 9.9 9.7

39 Share capital — The capital structure is as follows:
Category Voting interest Outstanding shares Par value
in CHF
31/12/2005 31/12/2004
Share capital
in CHF
Outstanding shares Par value
in CHF
Share capital
in CHF
Registered shares 68.18% 2 700 000 0.84 2 268 000 2 700 000 0.84 2 268 000
Bearer shares 31.82% 1 260 060 4.20 5 292 252 1 260 060 4.20 5 292 252
Total 100% 3 960 060 7 560 252 3 960 060 7 560 252
Dividends per share
Gross dividend in CHF
2005 2004
proposed authorised
– per bearer share 7.00 7.00
– per registered share 1.40 1.40
Pay-out ratio in % of the profit for the year 24.5% 25.5%
Gross dividend in % of the par value
– per bearer share 167% 167%
– per registered share 167% 167%
Major shareholders
Consolidated Financial Statements AFG Arbonia-Forster-Group
31/12/2005 31/12/2004
Voting interest Capital interest Voting interest Capital interest
Dr. Edgar Oehler 59.0% 26.0% 58.9% 26.0%

Earnings per share
Bearer shares
96 97
2005 2004
Profit for the year (proportional in TCHF) 36 320 34 903
Outstanding shares 1 260 060 1 260 060
Less treasury shares (average) –24 461 –24 232
Average number of shares outstanding for the calculation 1 235 599 1 235 828
Undiluted earnings per share in CHF 29.40 28.24
Registered shares
Profit for the year (proportional in TCHF) 15 212 14 615
Outstanding shares 2 700 000 2 700 000
Less treasury shares (average) –112 500 –112 500
Average number of shares outstanding for the calculation 2 587 500 2 587 500
Undiluted earnings per share in CHF 5.88 5.65
There were no dilutive effects impacting the calculation.
40 Treasury shares
Bearer shares
Transaction \-market
value
Number of
shares
2005 2004
Amount Transaction \-market
value
Number of
shares
Amount
in CHF in TCHF in CHF in TCHF
Balance at 01/01 132 24 232 3 197 132 24 232 3 197
Purchases 1 264 275 73
Balance at 31/12 133 24 507 3 270 132 24 232 3 197
Registered shares
Transaction \-market
value
Number of
shares
2005 2004
Amount Transaction \-market
value
Number of
shares
Amount
in CHF in TCHF in CHF in TCHF
Balance at 01/01 32 112 500 3 575 37 67 100 2 485
Purchases 1 24 45 400 1 090
Balance at 31/12 32 112 500 3 575 32 112 500 3 575

41 Other reserves
in TCHF
Foreign
exchange and
hedging
reserves
Currency
translation
Balance at 01/01/2004 0 0 0
Foreign exchange differences of US PP 8 395 8 395
Changes in fair value of CCS –13 426 –13 426
Transactions credited to income statement –2 166 –2 166
Deferred taxes –636 –636
Currency translation differences –545 –545
Balance at 31/12/2004 –7 833 –545 –8 378
Foreign exchange differences of US PP –20 375 –20 375
Changes in fair value of CCS 16 852 16 852
Transactions credited to income statement –662 –662
Deferred taxes 332 332
Currency translation differences 2 169 2 169
Balance at 31/12/2005 –11 686 1 624 –10 062
The interest and currency risk of the US private placement totalling USD 112 million was hedged by way of cross currency swaps
(CCS). These cross currency swaps are identical with the underlying transactions in terms of amount, currencies, interest payment
date and duration. They are considered to be highly effective in offsetting changes in cash flows of the underlying hedged transac-
tions and consequently the Group is applying hedge accounting. The inception date of the underlying transactions and the cross
currency swaps was 2 December 2004 and the maturity date will be on 30 December 2014.
42 Financial results
Financial income
in TCHF
Total
2005 2004
Bank interest 1 021 585
Income from securities 928 121
Impact of exchange rate fluctuations 3 404 6 113
Other financial income 537 93
Release of negative goodwill 4 950
Total 5 890 11 862
Financial expenses
Consolidated Financial Statements AFG Arbonia-Forster-Group
Bank interest 536 1 993
Expenses from securities 141
Interests on non-current financial debts 14 322 11 335
Other financial expenses 862 5 647
Total 15 861 18 975

43 Taxes
98 99
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate
applicable to profits of the consolidated companies as follows:
The Group’s applicable tax rate represents the weighted average of the statutory corporate tax rates prevailing in the tax jurisdictions
in which the group companies operate.
in TCHF
2005 2004
Income taxes current year 15 507 16 228
Income taxes previous years 729 –1 746
Changes in deferred income taxes –4 957 –3 165
Total 11 279 11 317
in TCHF
2005 2004
Profit before income tax 62 811 60 835
Weighted average tax rate in % 27.5 29.8
Expected tax charge 17 276 18 154
Income tax reconciliation
Effect of utilisation of previously unrecognised tax losses –15 –664
Effect of non tax deductible expenses and non taxable income –1 534 –2 614
Effect of income and expenses taxed at special rates –43 –1 786
Effect of tax charges related to prior years 288 –1 476
Effect of tax rate changes –3 253 510
Change in unrecognised deferred tax assets –8 219
Other items –1 432 –1 026
Effective tax charge 11 279 11 317
Effective tax rate in % 18.0 18.6

44 Restricted assets — Securities in the amount of CHF 4.4 million (2004: CHF 2.8 million) are under securities lending and there-
fore not readily available.
45 Derivative financial instruments — The Group uses derivative financial instruments to hedge forecast transactions and cash
flows. These financial instruments pertain to currencies of the primary markets and the currencies, in which the liability normally
would have to be settled.
As of the balance sheet date, the following derivative financial instruments were outstanding:
All derivative financial instruments are recognised at their fair values in the balance sheet. These fair values represent market prices
of alike financial instruments as of the balance sheet date. There are no other off-balance sheet forward contracts or options out-
standing.
Interest rate swaps were initially concluded for minimising the exposure to changes in interest rates. Due to early repayment of the
underlying transaction, these instruments were assessed to be ineffective and changes in the fair value are recognised in the income
statement as financial income/expenses.
in TCHF
Forward foreign exchange contracts are entered into for trading purposes and to benefit from changes in market prices. No such
contracts were outstanding at the previous year-end.
The combined instruments of interest rates and forward foreign exchange contracts (cross currency swaps) are identical with the
underlying US private placement transactions in terms of amount, currencies, interest payment date and duration. They are consid-
ered to be highly effective in offsetting changes in cash flows of the underlying hedged transactions and consequently the fair value
of these derivatives are recognised in equity (see note 41).
Contract
amount
31/12/2005 31/12/2004
Fair value
positive negative
Contract
amount
Fair value
positive negative
Interest rate swaps 45 355 –340 72 945 –1 417
Forward foreign exchange contracts 1 636 16
Combination of interest rate swaps and
Consolidated Financial Statements AFG Arbonia-Forster-Group
forward foreign exchange contracts 135 924 3 425 135 539 –13 427
Total derivative instruments 182 915 3 441 –340 208 484 –14 844

46 Related party transactions — Members of the board of directors and group management were compensated as follows:
100 101
The following operating transactions were carried out with related parties and the following balances were outstanding as of the
balance sheet date respectively:
The pricing of purchased and sold services with these parties was at arm’s length. There were no guarantees nor loans granted as of
the balance sheet date. Furthermore no provisions were required in 2005 and 2004 for receivables. Piatti Küchenforum AG in Luzern
with a voting interest of 40% is classified as associate. The loan granted to another associate, Immo Services & Consulting GmbH in
Bern, is secured by pledged real estate and interest rates are at commercial terms. The loan can be called in by the end of 2007 at
the earliest in case of non-occurrence of certain predefined events.
in TCHF
2005 2004
Salaries and other short-term employee benefits 3 326 2 512
Total 3 326 2 512
Sales of
services
Purchases
of services
Sales
of goods
Purchases
of goods
Balance on
receivables
Balance
on liabilities
in TCHF 2004 at 31/12/2004
Key management personnel 115 44
Other related parties 630 515 27 23 23 453
Associates 2 131 30
Total 630 515 2 273 23 97 453
Sales of
services
Purchases
of services
Sales
of goods
Purchases
of goods
Balance on
receivables
Balance
on liabilities
in TCHF 2005 at 31/12/2005
Key management personnel 279 3
Other related parties 697 299 10 24 64 24
Associates 2 692 33 650
Total 697 299 2 981 24 100 24 650
Loans
Loans

47 Contingencies — AFG has no contingencies.
48 Events after the balance sheet date — No events occurred between the balance sheet date and the date of this report which
could have a significant influence on the 2005 consolidated financial statements.
49 Transition from Swiss GAAP FER to IFRS — AFG’s consolidated financial statements for the year ended 31 December 2005 will
be the first annual financial statements that comply with IFRS. The transition date is 1 January 2004. The last consolidated financial
statements prepared in accordance with Swiss GAAP FER have been issued for the year ended 31 December 2004.
First time adoption of IFRS — In preparing these consolidated financial statements in accordance with IFRS 1, AFG has applied the
following, optional exemptions and mandatory exceptions from full retrospective application of IFRS.
Exemptions from full retrospective application elected by the Group — AFG has elected to apply the following optional ex-
emptions from full retrospective application.
a) Business combinations — IFRS 3, business combinations, was not applied retrospectively for business combinations that took
place prior to the transition date.
Consolidated Financial Statements AFG Arbonia-Forster-Group
b) Fair value or revaluation as deemed cost — Land, buildings and investment properties were measured at the transition date
at their fair value and were stated at their deemed cost at that date.
c) Employee benefits — For all pension plans, the cumulative actuarial gains and losses were recognised at the transition date.
d) Cumulative translation differences — Previously accumulated cumulative translation differences resulting from the translation
of foreign subsidiaries were set to zero at the transition date.
e) Designation of previously recognised financial instruments — Financial assets were either designated as financial assets at
fair value through profit or loss or as available-for-sale at the transition date.

102 103
Exceptions to full retrospective application elected by the Group — AFG has applied the following exceptions from retrospec-
tive application.
a) Estimates — Under IFRS 1, estimates at the transition date should be consistent with estimates made for the same date under
previous GAAP, unless there is objective evidence that those estimates were in error.
b) Derecognition of financial assets and liabilities — Financial assets and liabilities derecognised before the transition date are
not re-recognised under IFRS.
c) Hedge accounting — AFG did not apply hedge accounting at the transition date. AFG started applying hedge accounting for the
first time in December 2004 on cross currency swaps in relation with the issuance of notes of the US private placement.
d) Assets classified as held for sale and discontinued operations — AFG had neither assets that met the held for sale criteria
nor any discontinued operations.
Simultaneously with the transition from Swiss GAAP FER to IFRS, definitions to a greater extent within the balance sheet and to a
lesser extent within the income statement had to be revisited. Assets and liabilities were more stringently divided into current and
non-current, investment properties were separated from land and buildings and provisions were split up based on certain criteria.
These changes led to reclassifications within the balance sheet. Considering the principles of relevance and understandability, reclas-
sifications above CHF 1 million (alphabetical references) and changes in valuation above CHF 0.5 million (numerical references) will
be commented on.

Reconciliation of balance sheet items at 1/1/2004
Assets
Swiss
GAAP FER
Reclassifi-
cation
Valuation
adjustments
Reference in TCHF in TCHF in TCHF in TCHF
Cash and cash equivalents 88 692 –216 88 476
Securities a 10 922 –4 877 6 045
Accounts receivable b 85 075 –3 338 216 81 953
Other current assets c 22 809 –8 715 –186 13 908
Deferred expenses 4 033 -81 3 3 955
Current income tax receivables b/c 331 9 164 107 9 602
Inventories d 1 105 120 2 778 –837 107 061
Current assets 316 982 –5 285 –697 311 000
Deferred income tax assets e 2 4 466 4 221 8 687
Financial assets 3 527 –62 3 576 4 041
Property, plant and equipment d/f 4 369 281 –23 159 –51 602 294 520
Intangible assets 2 452 133 26 2 611
Investment property f 20 317 20 317
Non-current assets 372 260 1 695 –43 779 330 176
Total Assets 689 242 –3 590 –44 476 641 176
Liabilities and Shareholders‘ Equity
Consolidated Financial Statements AFG Arbonia-Forster-Group
Accounts payable 29 753 55 29 808
Warrant bond 1994–2004 37 700 37 700
Other liabilities b/g 36 654 –14 595 –15 22 044
Finance lease liabilities 426 –75 351
Accruals and deferred income i 52 068 –11 993 –430 39 645
Current income tax liabilities g/h/i 25 645 12 25 657
Provisions j 13 737 13 737
Current liabilities 156 601 12 849 –508 168 942
Financial debt 133 866 133 866
Finance lease liabilities 948 –341 607
Provisions h/i/j/k 61 978 –36 023 –430 25 525
Deferred income tax liabilities e 5 48 709 4 134 –9 030 43 813
Employee benefit obligations k 6 21 921 2 486 24 407
Non-current liabilities 245 501 –9 968 –7 315 228 218
Total Liabilities 402 102 2 881 –7 823 397 160
Share capital 7 560 7 560
Share premium l 42 500 –3 921 38 579
Treasury shares a 7 5 683 –10 559 –806 –5 682
Retained earnings l/m 8 231 397 8 009 –35 847 203 559
Shareholders‘ equity 287 140 –6 471 –36 653 244 016
Total Liabilities and Shareholders‘ Equity 689 242 –3 590 –44 476 641 176
IFRS

Explanation to certain positions of the balance sheet reconciliation at 1/1/2004 (All amounts are in TCHF)
Reclassification
a — Treasury shares of CHF 4 877 are disclosed under IFRS in shareholders’ equity.
b — As of the balance sheet date, prepayments owed to clients of CHF 2 128 were offset against prepayments from clients.
c — CHF 8 714 were reclassified from other current assets to current income tax receivables.
d — Spare parts and tools of CHF 2 278 previously classified in plant and machinery were reclassified to inventories (supplies).
e — Deferred tax assets of CHF 4 466 were reclassified from deferred income tax liabilities.
104 105
f — Land and buildings were split up into operating and non-operating. Operating land and buildings are disclosed in property, plant
and equipment, while non-operating land and buildings are disclosed in investment property. Land with a book value of CHF 14 048
and buildings in the amount of CHF 6 269 were reclassified to investment property.
g — CHF 13 950 were reclassified from other liabilities to current income tax liabilities.
h — CHF 6 464 were reclassified from non-current provisions to current income tax liabilities.
i — CHF 4 605 were reclassified from accruals and deferred income to current income tax liabilities and CHF 7 575 to current provi-
sions.
j — CHF 13 491 were reclassified from non-current to current provisions.
k — CHF 21 921 employee benefit obligations were reclassified from non-current provisions to employee benefit obligations.
l — CHF 3 921 were reclassified from share premium to retained earnings and the share premium now reflects the premium received
back in 1988 when the Company went public.
m — The reserve for treasury shares in the amount of CHF 5 683 was released and reclassified to retained earnings.
Valuation adjustments
1 — Unrealised gains on transactions between group companies of CHF 2 266 were eliminated. Changes in the valuation of inven-
tory (application of weighted average cost method, IFRS compliant determination of provision for obsolete and slow-moving items)
resulted in an increase of inventory by CHF 1 429.
2 — The increase in deferred tax assets relates to valuation adjustments of other balance sheet items.
3 — For all group companies within Switzerland, an actuarial valuation has been carried out on the pension plans in accordance with
IAS 19. On those plans with an overfunding, an asset of CHF 3 493 was calculated and recorded. For those plans with an underfunding
and therefore a resulting liability, reference is made to note 6.
4 — In light of the transition from Swiss GAAP FER to IFRS, external valuers have determined the fair market value of operating land
and buildings. Under IFRS 1, those fair market values form the basis for future depreciation charges. As of the transition date to IFRS,
an adjustment of CHF –24 851 on land and CHF –26 151 on buildings was necessary. Furthermore a valuation adjustment of CHF 626
for leased vehicles resulted from the application of the present value method.
5 — As a result of all the valuation adjustments, particularly arising from the fair market valuation of land and buildings, deferred
tax liabilities were reduced by CHF 9 030.
6 — The first-time application of actuarial valuations on the Swiss pension plans led, for those plans with an underfunding, to an
increase of the employee benefit obligations by CHF 2 486.
7 — The reclassification of treasury shares into shareholders’ equity and the revaluation to average market value resulted in an
increase of CHF 806.
8 — The consideration of all valuation adjustments led to a decrease of retained earnings by CHF 35 847.

Reconciliation of balance sheet items at 31/12/2004
Assets
Swiss
GAAP FER
Reclassifi-
cation
Valuation
adjustments
Reference in TCHF in TCHF in TCHF in TCHF
Cash and cash equivalents 113 736 67 113 803
Securities 5 560 5 560
Accounts receivable a 117 715 –3 392 217 114 540
Other current assets a 34 468 –15 149 –219 19 100
Deferred expenses 11 093 –845 3 10 251
Current income tax receivables 709 307 1 016
Inventories b 1 159 429 3 114 –727 161 816
Available-for-sale financial assets 79 79
Current assets 442 710 –15 819 –726 426 165
Deferred income tax assets c 2 6 962 1 702 8 664
Financial assets d 3 1 960 –1 094 16 797 17 663
Property, plant and equipment b/e 4 444 727 –38 479 –35 434 370 814
Intangible assets 5 8 536 8 21 611 30 155
Goodwill f 33 158 33 158
Investment property e 35 771 35 771
Non-current assets 455 223 36 326 4 676 496 225
Total Assets 897 933 20 507 3 950 922 390
Liabilities and Shareholders‘ Equity
Consolidated Financial Statements AFG Arbonia-Forster-Group
Borrowings g 8 940 4 064 13 004
Accounts payable 41 396 –20 41 376
Other liabilities a/h 63 353 –18 289 145 45 209
Finance lease liabilities 1 556 52 –69 1 539
Accruals and deferred income h/i 55 553 –7 650 –108 47 795
Current income tax liabilities h 7 061 9 7 070
Provisions h/i 12 952 130 13 082
Current liabilities 170 798 –1 830 107 169 075
Financial debt d/g/k 351 919 –420 351 499
Finance lease liabilities 650 –346 304
Provisions h/i/j 6 66 274 –34 465 –2 281 29 528
Deferred income tax liabilities c 7 49 234 5 627 6 323 61 184
Employee benefit obligations j 8 22 724 8 919 31 643
Non-current liabilities 468 077 –6 534 12 615 474 158
Total Liabilities 638 875 –8 364 12 722 643 233
Share capital 7 560 7 560
Share premium l 42 500 –3 921 38 579
Treasury shares m –6 772 –6 772
Other reserves k 9 –5 577 –2 801 –8 378
Retained earnings f/l/m 208 998 45 141 –5 971 248 168
Shareholders‘ equity 259 058 28 871 –8 772 279 157
Total Liabilities and Shareholders‘ Equity 897 933 20 507 3 950 922 390
IFRS

Explanation to certain positions of the balance sheet reconciliation at 31/12/2004 (All amounts are in TCHF)
Reclassification
106 107
a — Prepayments from clients of CHF 2 039 were reclassified to other liabilities. Out of CHF 1 420 from accounts receivable, CHF 694
were reclassified to other current assets and CHF 726 to other liabilities.
b — Spare parts and tools of CHF 3 206 previously classified in plant and machinery were reclassified to inventories (supplies).
c — Deferred tax assets of CHF 6 962 were reclassified from deferred income tax liabilities.
d — Transaction costs in relation to the issuance of the US private placement amounting to CHF 1 059 were capitalised under previ-
ous GAAP. Under IFRS such costs are deducted from the proceeds and the difference to the redemption value is recognised in the
income statement over the period of the borrowing using the effective interest method.
e — Land and buildings were split up into operating and non-operating. Operating land and buildings are disclosed in property, plant
and equipment, while non-operating land and buildings are disclosed in investment property. Land with a book value of CHF 30 467
and buildings in the amount of CHF 5 304 were reclassified to investment property.
f — The purchase price allocation of the acquired companies in 2004 resulted in a goodwill of CHF 33 158 (net book value as at
31/12/2004).
g — Mortgages of CHF 4 000 which mature within one year were reclassified from non-current financial debt to current borrow-
ings.
h — CHF 16 087 previously disclosed in other liabilities were reclassified to current tax liabilities. Current income tax receivables of
all German subsidiaries amounting to CHF 14 773 were offset against current income tax liabilities of CHF 16 087 and the net amount
of CHF 1 314 disclosed under the aforementioned position. CHF 5 536 were reclassified from accruals and deferred income to current
income tax liabilities, CHF 2 043 to current and CHF 700 to non-current provisions.
i — CHF 10 503 were reclassified from non-current provisions to current provisions and CHF 1 183 to accruals and deferred income.
j — CHF 22 788 employee benefit obligations were reclassified from non-current provisions to employee benefit obligations.
k — Under IFRS the Group applies hedge accounting on certain transactions. The change in fair value of CHF 5 032 has been recog-
nised in equity.
l — CHF 3 921 were reclassified from share premium to retained earnings (see note l of the balance sheet reconciliation at
1/1/2004).
m — The reserve for treasury shares in the amount of CHF 6 772 was released and reclassified to retained earnings.
Valuation adjustments
1 — Unrealised gains on transactions between group companies of CHF 1 935 were eliminated. Changes in the valuation of inven-
tory resulted in an increase of inventory by CHF 1 207.
2 — The increase in deferred tax assets relates to valuation adjustments of other balance sheet items.
3 — Actuarial valuations were carried out on the Swiss pension plans in accordance with IAS 19. On those plans with an overfunding,
an asset of CHF 16 777 was calculated and recorded. CHF 11 967 of those assets resulted from the acquired companies in 2004.
4 — In light of the transition from Swiss GAAP FER to IFRS, external valuers have determined the fair market value of operating land
and buildings. Under IFRS 1, those fair market values form the basis for future depreciation charges. As of 31 December 2004 an
adjustment after depreciation charges of CHF –24 840 on land and CHF –23 342 on buildings was necessary. The purchase price
allocation for the acquired companies in 2004 resulted in an increase of land and buildings by CHF 16 657. Those fair market values
were determined by external valuers. A further valuation adjustment of CHF –4 000 relates to adjustments to their fair value of
machinery (CHF –3 421) and other equipment (CHF –602) carried under previous GAAP at cost.
5 — During the purchase price allocation of the acquired companies, CHF 24 210 of intangible assets were identified. A reassessment
of the useful life of intangible assets led to an increase of amortisation charges by CHF 2 640.
6 — Some CHF 2 281 of non-current provisions did not meet the definition of a provision as stipulated under IFRS and were therefore
released to the income statement.

7 — Valuation adjustments identified during the transition to IFRS resulted in additional deferred income tax liabilities of CHF 6 323.
The significant increase of deferred income tax liabilities as compared to 1/1/2004 primarily can be explained by the acquired com-
panies during 2004 (CHF 15 408).
8 — Actuarial valuations of the Swiss pension plans revealed, for those plans with an underfunding, an employee benefit obligation
of CHF 8 919.
9 — Due to the application of hedge accounting, foreign exchange differences of CHF 2 166 were brought from the income state-
ment to equity. Additionally, CHF 636 of deferred taxes were recognised directly in equity.
Reconciliation of income statement items for 2004
Swiss
GAAP FER
Reclassification
Valuation
adjustments
Reference in TCHF in TCHF in TCHF in TCHF
Net revenues a 1 1 021 819 3 986 762 1 026 567
Other operating income a/b/c 6 312 3 047 64 9 423
Capitalised own services 2 372 –3 2 369
Changes in inventories of semi-finished
Consolidated Financial Statements AFG Arbonia-Forster-Group
and finished goods –25 046 784 36 –24 226
Net operating performance 1 005 457 7 814 862 1 014 133
Cost of material and goods b –430 368 –7 055 390 –437 033
Personnel expenses c/d 2 –319 666 –3 612 2 064 –321 214
Other operating expenses b/c/d 3 –129 180 2 409 –1 756 –128 527
EBITDA 126 243 –444 1 560 127 359
Depreciation and amortisation 4 –53 084 –1 355 –4 972 –59 411
EBIT 73 159 –1 799 –3 412 67 948
Financial income b 5 4 826 1 791 5 245 11 862
Financial expenses –18 927 –48 –18 975
Other expenditure (net) –56 56
Profit before income tax 59 002 1 833 60 835
Income tax expense 6 –11 905 588 –11 317
Profit for the year 47 097 2 421 49 518
IFRS

Explanation to certain positions of the income statement reconciliation for 2004 (All amounts are in TCHF)
Reclassification
a — CHF 4 410 were reclassified from other operating income to net revenues.
108 109
b — Under previous GAAP, proceeds including such items as scrap metal were recognised as a deduction from cost of material and
goods. Under IFRS they are disclosed in other operating income (CHF 5 974). Supply material in the amount of CHF 1 465 was reclas-
sified to other operating expenses and income of CHF 1 857 to financial income.
c — Meal and equipment vouchers paid by staff in the amount of CHF 2 026 were reclassified to other operating income, whereas
under previous GAAP, they were recognised as a deduction from personnel expenses and other operating expenses.
d — CHF 1 500 were reclassified from other operating expenses to personnel expenses.
Valuation adjustments
1 — CHF 846 of lump-sum warranty provision and allowance for accounts receivable were released.
2 — CHF 2 226 of provision for employee benefit obligations as determined under IAS 19 were released.
3 — Low-value assets in the amount of CHF 1 388 were not capitalised but immediately recognised in the income statement as
other operating expenses.
4 — The variance in depreciation and amortisation resulted from the transition of Swiss GAAP FER to IFRS, whereas the depreciation
basis of depreciable assets were redefined (CHF –1 700) and additional CHF 6 725 of amortisation charges were recognised as a result
of the identified intangible assets during the purchase price allocation of the newly acquired companies (see note 34).
5 — The purchase price allocation identified a negative goodwill of CHF 4 950. The valuation adjustment of the US private placement
and its hedging instruments impacted the income statement by CHF 2 508 and the change in accounting policies of securities by
CHF –938.
6 — An adjustment of deferred income taxes by CHF 588 on temporary differences resulted from the various valuation adjust-
ments.
Explanation to the cash flow statement 2004
The cash flow statement prepared in accordance with IFRS does not highlight any significant differences with the cash flow statement
prepared in accordance with Swiss GAAP FER. Only the different translation methods of cash flows denominated in foreign curren-
cies, the previously mentioned reclassification and valuation adjustments led to an impact in the cash flow statement.

50 Subsidiaries
Number
Company
G Production/Sales
M Trade
Heating Technology and Sanitary
P Services/Finances
Head Office
1 Arbonia AG Arbon, CH 4.000 CHF 100% 23 G
2 AFG Arbonia-Forster-Riesa GmbH Riesa, DE 0.614 EUR 100% 24 G
3 Heizkörper Prolux AG Arbon, CH 1.000 CHF 100% 1 M
4 Arbonia France Sàrl Walheim, F 0.600 EUR 100% 1 M
5 Arbonia Austria GmbH Wien, A 0.035 EUR 100% 24 M
6 Kermi GmbH Plattling, DE 15.339 EUR 100% 24 G G
7 Kermi France SAS St-Ouen-l’Aumône, F 1.500 EUR 100% 6
8 Kermi Sro Strìbro, CZ 195.000 CZK 100% 6 G G
9 Kermi Sp.z.o.o. Wroclaw, PL 0.900 PLN 100% 6
10 Kermi UK Ltd Corby, GB 0.150 GBP 100% 6
11 Kermi Italia Srl Burgstall, I 0.015 EUR 100% 6
Kitchens and Refrigeration
12 Forster Küchen- & Kühltechnik AG Arbon, CH 2.000 CHF 100% 23 G G
13 AFG Arbonia Forster Italia Srl Burgstall, I 0.052 EUR 100% 12 M
14 Bruno Piatti AG Dietlikon, CH 3.000 CHF 100% 23 G
15 Cucine Piatti SA Contone, CH 0.100 CHF 100% 14 M
16 Warendorfer Küchen GmbH Warendorf, DE 0.102 EUR 100% 24 G
17 AFG Warendorfer Immobilien GmbH Warendorf, DE 0.051 EUR 100% 24 P
18 AFG Küchen International AG Arbon, CH 1.000 CHF 100% 23 P
19 AFG Küchenstudio BeLux GmbH Strassen, L 0.013 EUR 100% 18 M
Steel Technology
20 Forster Rohr- & Profiltechnik AG Arbon, CH 4.000 CHF 100% 23 G
Windows and Doors
21 EgoKiefer AG Altstätten, CH 8.000 CHF 100% 23 G
22 Usines Ego SA Villeneuve, CH 0.700 CHF 100% 21 P
Corporate Services
Consolidated Financial Statements AFG Arbonia-Forster-Group
23 AFG Arbonia-Forster-Holding AG Arbon, CH 7.560 CHF P
24 AFG Arbonia-Forster-Deutschland GmbH Plattling, DE 0.511 EUR 100% 23 P
25 AFG Arbonia-Forster-Finance Ltd Guernsey, GB 0.000 EUR 100% 23 P
26 AFG Management AG Arbon, CH 0.250 CHF 100% 23 P
27 AF Beteiligungs AG Arbon, CH 0.500 CHF 100% 23 P
28 AFG Services AG Arbon, CH 0.250 CHF 100% 23 P
29 Asta AG Frasnacht, CH 0.120 CHF 100% 23 P
30 Spedition Gächter AG Arbon, CH 0.100 CHF 100% 23 P
Share Capital in million
Interest in Capital
Parent Company
Heaters/Radiators
Shower Stalls
M M
M M
M M
M M
Refrigeration
Kitchens
Steel Technology
Windows and Doors
Logistic
Services/Finance

To the General Meeting of
AFG Arbonia-Forster-Holding AG, Arbon
St. Gallen, 27 February 2006
Report of the group auditors
110 111
As group auditors, we have audited the consolidated financial statements (income statement, balance sheet, cash flow statement,
statement of changes in equity and notes, pages 68 to 110) of AFG Arbonia-Forster-Group for the year ended 31 December 2005.
These consolidated financial statements are the responsibility of the board of directors. Our responsibility is to express an opinion on
these consolidated financial statements based on our audit. We confirm that we meet the legal requirements concerning profes-
sional qualification and independence.
Our audit was conducted in accordance with Swiss Auditing Standards and International Standards on Auditing (ISA), which require
that an audit be planned and performed to obtain reasonable assurance about whether the consolidated financial statements are
free from material misstatement. We have examined on a test basis evidence supporting the amounts and disclosures in the con-
solidated financial statements. We have also assessed the accounting principles used, significant estimates made and the overall
consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements give a true and fair view of the financial position, the results of operations, the
changes in equity and the cash flows in accordance with International Financial Reporting Standards (IFRS) and comply with Swiss
law.
We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young AG
Markus Oppliger Louis Siegrist
Swiss Certified Accountant Swiss Certified Accountant
(in charge of the audit)

Income Statement
Financial Statements AFG Arbonia-Forster-Holding AG
2005 2005 2004 2004
in TCHF % in TCHF %
Financial income 48 567 19 728
Other income 3 329 2 264
Total revenues 51 896 100.0 21 992 100.0
Personnel expenses –2 296 –4.4 –1 067 –4.9
Financial expenses –22 609 –43.6 –11 138 –50.6
Taxes –397 –0.8
Depreciation –50 –0.1 –1 144 –5.2
Other expenses –1 647 –3.2 –2 144 –9.7
Total expenses –26 999 –52.0 –15 493 –70.4
Net profit for the year 24 897 48.0 6 499 29.6

Balance Sheet
Assets
112 113
2005 2005 2004 2004
in TCHF % in TCHF %
Cash and cash equivalents 65 660 81 663
Securities 12 132 12 199
Accounts receivable from third parties 234 190
Accounts receivable from group companies 56 722 539
Deferred expenses 43 73
Current assets 134 791 21.0 94 664 15.0
Tangible fixed assets 76 126
Investments 300 708 276 608
Loans to group companies 206 305 257 594
Other financial assets 987 1 110
Non-current assets 508 076 79.0 535 438 85.0
Total Assets 642 867 100.0 630 102 100.0
Liabilities and Shareholders‘ Equity
Liabilities to third parties 294 618
Liabilities to group companies 9 003
Accruals and deferred income 4 189 3 902
Current liabilities 13 486 2.1 4 520 0.7
Loans from group companies 11 938
Provisions 66 094 66 094
Bond 2004–2010 148 978 148 767
Notes 195 936 193 035
Non-current liabilities 411 008 63.9 419 834 66.6
Total Liabilities 424 494 66.0 424 354 67.3
Share capital 7 560 7 560
General legal reserve 42 812 42 812
Other reserves 10 000 10 000
Reserve for treasury shares 6 845 6 773
Retained earnings 151 156 138 603
Shareholders‘ equity 218 373 34.0 205 748 32.7
Total Liabilities and Shareholders‘ Equity 642 867 100.0 630 102 100.0

Financial Statements AFG Arbonia-Forster-Holding AG
Notes to the Financial Statements
1 Guarantees, warranty obligations and collateral in favour of third parties — The following guarantees were issued for the
companies listed below:
Deutsche Bank AG
2 Securities Lending
3 Operating leases
Lease liabilities contain all amounts of future costs, including interest costs.
4. Bonds/Notes — Refer to point 36 in the notes to the consolidated financial statements.
2005 2004
in favour of Kermi GmbH in TEUR 10 000 10 000
in favour of Arbonia AG in TEUR 300 300
in favour of Heizkörper Prolux AG in TEUR 100 100
in favour of Spedition Gächter AG in TEUR 10
Thurgauer Kantonalbank
in favour of Asta AG, Spedition Gächter AG and
Forster Küchen- & Kühltechnik AG in TCHF 2 945 7 100
Zürcher Kantonalbank
in favour of Bruno Piatti AG in TCHF 1 000
HypoVereinsbank
in favour of Kermi GmbH in TEUR 11 000 11 000
in favour of Kermi Sro in TEUR 1 000 1 000
in favour of AFG Arbonia-Forster-Deutschland GmbH in TEUR 5 000
in favour of Warendorfer Küchen GmbH in TEUR 356
AFG Arbonia-Forster-Finance Ltd.
in favour of AFG Arbonia-Forster-Deutschland GmbH in TEUR 73 200 69 900
2005 2004
Securities Lending in TCHF 4 407 2 757
2005 2004
Operating leases in TCHF 78 213

5 Investments
Company
P = Production T = Trade S = Service Sh = Shipping
6 Treasury shares — Refer to point 40 in the notes to the consolidated financial statements.
7 Major shareholders — Refer to point 39 in the notes to the consolidated financial statements.
8 Off balance sheet items
Share capital
114 115
31/12/2005
31/12/2004
Interest in capital Share capital Interest in capital
in T in % in T in %
Arbonia AG P/T CHF 4 000 100.0 CHF 4 000 100.0
AF Beteiligungs AG S CHF 500 100.0 CHF 500 100.0
Asta AG Sh CHF 120 100.0 CHF 120 100.0
Forster Rohr- & Profiltechnik AG P/T CHF 4 000 100.0 CHF 4 000 100.0
Forster Küchen- & Kühltechnik AG P/T CHF 2 000 100.0 CHF 2 000 100.0
AFG Services AG S CHF 250 100.0 CHF 250 100.0
AFG Arbonia-Forster-Deutschland GmbH S EUR 511 100.0 EUR 511 100.0
AFG Arbonia-Forster-Finance Ltd S EUR 0 100.0 EUR 0 100.0
AFG Management AG S CHF 250 100.0 CHF 250 100.0
Bruno Piatti AG P/T CHF 3 000 100.0 CHF 3 000 100.0
EgoKiefer AG P/T CHF 8 000 100.0 CHF 8 000 100.0
Spedition Gächter AG Sh CHF 100 100.0 CHF 100 100.0
AFG Küchen International AG S CHF 1 000 100.0
Combination of interest rate swaps and
in TCHF
Contract
amount
2005
Fair value
positive negative
Contract
amount
2004
Fair value
positive negative
forward foreign exchange contracts 135 924 3 425 135 539 –14 045
Forward foreign exchange contracts 1 636 16
Total derivative instruments 137 560 3 441 135 539 –14 045
The combination of interest rate swaps and forward foreign exchange contracts transactions are used solely for hedging interest and
currency risks for long-term loans. The positive fair value results from the market valuation of interest and currency risks. The positive
fair value has not been recorded because the interest as well as the currency risks are hedged over the entire term of the loan.

Financial Statements AFG Arbonia-Forster-Holding AG
Appropriation of Retained Earnings
The Board of Directors will propose at the Annual General Meeting of the shareholders on 21 April 2006 the approval for the distribu-
tion of retained earnings as follows:
in TCHF
2005
proposed
2004
authorised
Net profit for the year 24 897 6 499
Retained earnings carried forward from previous year 126 003 133 063
Plus undistributed dividends from treasury shares 1) 329 131
Allocation from/to reserve for treasury shares –73 –1 090
Retained earnings 151 156 138 603
Distribution as follows:
Distribution of a dividend 1) 12 600 12 600
Retained earnings carried forward 138 556 126 003
Total 151 156 138 603
1) No distribution of a dividend for treasury shares at the time of payment.

To the General Meeting of
AFG Arbonia-Forster-Holding AG, Arbon
St. Gallen, 27 February 2006
Report of the statutory auditors
As statutory auditors, we have audited the accounting records and the financial statements (income statement, balance sheet and
notes, pages 112 to 116) of AFG Arbonia-Forster-Holding AG for the year ended 31 December 2005.
These financial statements are the responsibility of the board of directors. Our responsibility is to express an opinion on these finan-
cial statements based on our audit. We confirm that we meet the legal requirements concerning professional qualification and inde-
pendence.
Our audit was conducted in accordance with Swiss Auditing Standards, which require that an audit be planned and performed to
obtain reasonable assurance about whether the financial statements are free from material misstatement. We have examined on a
test basis evidence supporting the amounts and disclosures in the financial statements. We have also assessed the accounting prin-
ciples used, significant estimates made and the overall financial statement presentation. We believe that our audit provides a reason-
able basis for our opinion.
In our opinion, the accounting records, the financial statements and the proposed appropriation of available earnings comply with
Swiss law and the company‘s articles of incorporation.
We recommend that the financial statements submitted to you be approved.
Ernst & Young AG
Markus Oppliger Louis Siegrist
Swiss Certified Accountant Swiss Certified Accountant
(in charge of the audit)
116 117

Supplementary Information for Investors
Category and number of shares
2005 1) 2004 1) 2003 2) 2002 2)
Bearer CHF 4.20 1 260 060 1 260 060 1 260 060 1 260 060
Registered CHF 0.84 2 700 000 2 700 000 2 700 000 2 700 000
Stock market prices in CHF
Bearer highest 394 197 162 108
Bearer lowest 175 149 54 66
Bearer 31/12 347 182 154 75
Gross dividends in CHF
3), 4)
Bearer shares 7.00 7.00 2.80 0.00
Registered shares 1.40 1.40 0.56 0.00
Profit for the year in CHF
Per bearer share 29.40 28.24 10.99 9.61
Per registered share 5.88 5.65 2.39 2.09
Consolidated cash flow from operating activities in CHF
Per bearer share 46.56 17.18 40.25 43.03
Per registered share 9.31 3.44 8.77 9.37
Consolidated shareholders‘ equity in CHF
Per bearer share 175.91 155.08 155.37 146.44
Per registered share 35.18 31.02 33.84 31.90
Market capitalisation bearer shares in CHF million 5) 437.2 229.3 194.0 94.5
Capitalisation bearer and registered shares in CHF million 6) 624.6 327.6 277.2 135.0
Pay-out ratio (% of the profit for the year) 3) 24% 25% 25% 0%
Price/earnings ratio per bearer in CHF
Highest 13.76 7.16 14.74 11.23
Lowest 6.11 5.42 4.91 6.86
Price/cash flow ratio per bearer in CHF
Highest 8.46 11.47 4.02 2.51
Lowest 3.76 8.67 1.34 1.53
1) Data from 2004 onwards = IFRS
2) Data up to 2003 = Swiss GAAP FER
3) 2005 proposal to the Annual General Meeting
4) 2002 a repayment of par value (bearer shares CHF 2.80; registered shares CHF 0.56)
was made instead of a dividend payment
5) Last paid price for bearer shares in the particular year
6) Registered shares, which are not quoted at the SWX, are included for calculation
at a ratio of 1:5

History
Development of
AFG Arbonia-Forster-Holding AG
1874 — F.J. Forster opens a coppersmith’s shop in Arbon TG
1904 — Karl Schnitzler sets up a workshop for Arbonia heat exchangers
1954 — Conversion of sole proprietorship to limited company Arbonia AG
1958 — Transfer of the majority of shares to Jakob Züllig
1973 — Transfer of the majority of shares of Hermann Forster AG (founded 1874
as a coppersmith workshop, expansion of business to include steel tube
production in 1915, conversion of sole proprietorship to limited company
Hermann Forster AG in 1922, start-up of kitchen and refrigerator
production in 1953)
1987 — Founding of AFG Arbonia-Forster-Holding AG
1988 — AFG listed on the Stock Exchange
1992 — Founding of AFG Arbonia-Forster-Riesa GmbH in Riesa, Saxony
1999 — Takeover of Prolux Heizkörper AG (founded 1978)
1999 — Death of Jakob Züllig, President and CEO
2001 — Takeover of Kermi GmbH (founded 1960, founding of Kermi s.r.o.
in Strˇíbro, Czech Republic, in 1996)
2003 — The Züllig heirs sell their majority share to Edgar Oehler, Ph.D.,
new Chairman of the Board of Directors and CEO
2004 — Takeover of Spedition Gächter AG (founded 1976)
2004 — Takeover of Bruno Piatti AG (founded 1948)
2004 — Takeover of EgoKiefer AG (founded 1932)
2005 — Takeover of Miele Kitchens (started manufacturing kitchens in 1975)
and foundation of Warendorfer Küchen GmbH and AFG Kitchen International Ltd.
118 119

AFG Companies and Adresses
AFG Arbonia-Forster-Holding AG
Romanshornerstrasse 4
P.O. Box 134
CH-9320 Arbon
T +41 71 447 41 41
F +41 71 447 45 88
holding@afg.ch
AFG Arbonia-Forster-Deutschland GmbH
Pankofen-Bahnhof 1
DE-94447 Plattling
T +49 9931 50 10
F +49 9931 30 75
AFG Arbonia-Forster-Riesa GmbH
Heinrich-Schönberg-Strasse 3
DE-01591 Riesa
T +49 3525 74 60
F +49 3525 74 62 57
info@arbonia.de
AFG Arbonia Forster Italia srl
Romstrasse 85
I-39014 Burgstall-Bozen
T +39 473 291 591
F +39 473 290 270
forster.kuechen.meran@afg.ch
AFG Küchen International AG
Romanshornerstrasse 4
CH-9320 Arbon
T +41 71 447 41 41
F +41 71 447 45 89
AFG Küchenstudio BeLux GmbH
Route d’Arlon 117
B.P. 95
L-8001 Strassen
T +35 231 36 36
F +35 231 38 90
AFG Management AG
Romanshornerstrasse 4
P.O. Box 134
CH-9320 Arbon
T +41 71 447 41 41
F +41 71 447 45 49
AFG Services AG
Zelgstrasse 3
P.O. Box 550
CH-9320 Arbon
T +41 71 447 45 45
F +41 71 447 42 95
info@afg.ch
AFG Warendorfer Immobilien GmbH
Mielestrasse 1
DE-48231 Warendorf
T +49 2581 59 0
F +49 2581 59 20 90
info@miele-kuechen.de
Arbonia AG
Industriestrasse 23
CH-9320 Arbon
T +41 71 447 47 47
F +41 71 447 48 47
verkauf@arbonia.ch
Arbonia Austria GmbH
Lampigasse 11/1
A-1020 Wien
T +43 374 82 32
F +43 374 82 33
office@arbonia.at
Arbonia France Sàrl
Zone artisanale
Grand Rue
F-68130 Walheim
T +33 389 40 02 53
F +33 389 40 04 25
probst.arbonia@wanadoo.fr

Asta AG
Industriestrasse 12
P.O. Box 650
CH-9320 Arbon
T +41 71 447 49 49
F +41 71 447 49 50
asta@afg.ch
Bruno Piatti AG
Riedmühlestrasse 16
CH-8305 Dietlikon
T +41 44 835 51 11
F +41 44 833 07 41
info@piatti.ch
EgoKiefer AG
Schöntalstrasse 2
CH-9450 Altstätten
T +41 71 757 33 33
F +41 71 757 35 50
zentrale@egokiefer.ch
EgoKiefer SA
Zone Industrielle A11
CH-1844 Villeneuve
T +41 21 967 08 00
F +41 21 967 08 10
villeneuve@egokiefer.ch
Forster Küchen- & Kühltechnik AG
Forster Küchen
Egnacherstrasse 37
P.O. Box 600
CH-9320 Arbon
T +41 71 447 41 41
F +41 71 447 46 50
forster.kuechen@afg.ch
Forster Küchen- & Kühltechnik AG
Forster Kühlen
Zelgstrasse 3
P.O. Box 500
CH-9320 Arbon
T +41 71 447 41 41
F +41 71 447 42 98
forster.kuehlen@afg.ch
Forster Rohr- & Profiltechnik AG
Forster Präzisionsstahlrohre
Industriestrasse 24
P.O. Box 450
CH-9320 Arbon
T +41 71 447 44 44
F +41 71 447 43 74
forster.rohre@afg.ch
Forster Rohr- & Profiltechnik AG
Forster Profilsysteme
Romanshornerstrasse 6
P.O. Box 400
CH-9320 Arbon
T +41 71 447 43 43
F +41 71 447 44 78
forster.profile@afg.ch
Heizkörper Prolux AG
Industriestrasse 23
CH-9320 Arbon
T +41 71 447 48 48
F +41 71 447 48 49
verkauf@prolux-ag.ch
120 121

AFG Companies and Adresses
Kermi GmbH
Pankofen-Bahnhof 1
DE-94447 Plattling
T +49 9931 50 10
F +49 9931 30 75
info@kermi.de
Kermi Sp.z.o.o.
Ul. Polnocna 15–19
PL-54-105 Wroclaw
T +48 71 35 40 370
F +48 71 35 40 463
kermi@kermi.pl
Kermi Sro
Dukelska ul. 1427
CZ-34901 Stribro
T +420 374 611 111
F +420 374 611 100
info@kermi.cz
Kermi UK Ltd.
7, Brunel Road
Earlstrees Industrial Estate
Northamptonshire NN17 4JW
GB-Corby
T +44 1536 40 00 04
F +44 1536 44 66 14
info@kermi.co.uk
Kermi China
Eternalink Bldg
Room 910
Beisanhuandonglu 28
Chaoyang District
CHN-100013 Beijing
T +86 10 6440 5260
Spedition Gächter AG
Industriestrasse 12
P.O. Box 87
CH-9320 Arbon
T +41 71 447 49 46
F +41 71 447 49 47
gaechter@afg.ch
Warendorfer Küchen GmbH
Mielestrasse 1
DE-48231 Warendorf
T +49 2581 59 0
F +49 2581 59 20 90
info@miele-kuechen.de

Important Dates, Contact
Important Dates
21 March 2006
Financial media/analyst conference
presenting 2005 results
Zurich
21 April 2006
Annual General Meeting
Arbon
August 2006
Publication of 2006 semiannual report
Contact
Corporate Communications
Dr. Stefan Holenstein
T +41 71 447 45 56
F +41 71 447 45 89
stefan.holenstein@afg.ch
Finance Controlling Reporting
Felix Bodmer
T +41 71 447 45 51
F +41 71 447 45 88
felix.bodmer@afg.ch
This annual report is published in German and English;
the original language is German.
122 123

Concept and overall production: Absolute Consulting, Baden/Linkgroup, Zurich, www.linkgroup.ch
Photographs: Gataric/Helbling, Zurich, www.gapa.ch

Division Heating Technology
and Sanitary Equipment
Division Kitchens and Refrigeration
Division Steel Technology
Division Windows and Doors
Logistics

AFG Arbonia-Forster-Holding AG
Romanshornerstrasse 4
P.O. Box 134
CH-9320 Arbon
www.afg.ch
Leadership. International horizons. Expansion.