Annual Report of the Group 01.01

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Annual Report of the Group 01.01 CONTENTS 2 – 48 To our shareholders 2 Letter to shareholders 10 Strategy 22 Corporate Communications 26 Arcandor share 28 Report of the Supervisory Board 37 Corporate Governance 49 – 70 Operating segments 50 Thomas Cook 56 Primondo 62 Karstadt 70 Insights 2007 71 – 100 Consolidated management report 71 Detailed table of contents 72 Key points 73 General economic conditions 75 Business performance in the 2007 short financial year 101 – 162 Consolidated financial statements 101 Detailed table of contents 102 Consolidated financial ­ statements 106 Notes to the consolidated ons: financial statements 161 Auditor’s report ­ 162 Responsibility statement rategic 163 – 167 Further information 164 Glossary 166 Index ation. ANNUAL REPORT OF THE GROUP 01.01. TO 30.09.2007 At a glance Overview of the operating segments of the Arcandor Group Your contacts Important Investor Relations dates CONTENTS Change 30.09.2007 30.09.2006* in % 31.12.2006* THOMAS COOK Annual General Meeting Investor Relations (Düsseldorf) April 23, 2008 SALES Thomas Cook Group plc is a leading global tourism group with Phone: +49 (0)201 727 98 16 2 – 48 To our shareholders Interim reports 2 Letter to shareholders Fax: +49 (0)201 727 98 54 Thomas Cook mill. € 8,447.8 2,503.1 - 3,886.7 Quarter 1 February 14, 2008 10 Strategy excellent market positions in Europe and North America and a [email protected] Primondo mill. € 2,889.4 2,778.0 4.0 3,984.2 Quarter 2 May 15, 2008 22 Corporate Communications 26 Arcandor share Karstadt mill. € 2,861.6 2,940.4 -2.7 4,372.6 large portfolio of attractive brands. The new group was created Operating segments mill. € 14,198.8 8,221.5 72.7 12,243.5 Detlef Neveling 28 Report of the Supervisory Board 37 Corporate Governance Other segments1) mill. € 192.9 213.1 - 282.6 in June 2007 by the merger of MyTravel and Thomas Cook and Head of Investor Relations Reconciliation account mill. € -110.8 -128.3 - -169.2 Phone: +49 (0)201 727 98 17 mill. € 14,280.9 8,306.3 71.9 12,356.9 has since then been listed on the London Stock Exchange. [email protected] 49 – 70 Operating segments EARNINGS Imprint 50 Thomas Cook Ute Schwenn 56 Primondo Thomas Cook mill. € 708.6 45.5 - 199.2 Office/Assistant 62 Karstadt Primondo mill. € -72.9 -73.7 1.1 -40.9 PRIMONDO Phone: +49 (0)201 727 98 16 Publisher 70 Insights 2007 Karstadt mill. € -34.0 -35.9 5.3 145.9 © [email protected] Arcandor AG Operating segments mill. € 601.7 -64.1 - 304.2 Primondo has a high-quality portfolio of European universal Theodor-Althoff-Str. 2, D - 45133 Essen Other segments 1) , 71 – 100 Consolidated Reconciliation account/Holding company mill. € -75.0 107.0 - 95.7 and specialty mail order companies. Quelle, the core brand in Jürgen Koch www.arcandor.com management report EBITDA (adjusted) mill. € 526.7 42.9 - 399.9 Investor Relations Manager 71 Detailed table of contents EBITDA margin (adjusted) in % 3.7 0.5 - 3.2 Universal Mail Order, has leading market positions in Germany Phone: +49 (0)201 727 98 36 Overall conception and realization 72 Key points 73 General economic conditions Group earnings after minorities mill. € 16.3 479.0 -96.6 330.3 [email protected] HGB Hamburger Geschäftsberichte GmbH & and Central and Eastern Europe, and operates an extensive 75 Business performance in the FINANCIAL SITUATION Co. KG und Arcandor AG 2007 short financial year Karin Widenmann Cash and cash equivalents mill. € 1,505.6 965.6 55.9 1,152.1 multi-channel sales network. The Specialty Mail Order companies Investor Relations Manager Photos Investments mill. € 255.0 167.4 52.3 233.7 Phone: +49 (0)201 727 71 24 Arcandor AG 101 – 162 Consolidated Depreciation and amortization focus on three selected growth segments. financial statements (not including amortization of goodwill) mill. € 389.0 216.4 -79.8 346.0 [email protected] Jörg Strehlau, Düsseldorf 101 Detailed table of contents Net financial liabilities/assets mill. € -628.9 -387.7 -62.2 148.9 102 Consolidated financial Working capital mill. € -567.5 759.1 -174.8 358.6 Reproduction statements KARSTADT 106 Notes to the consolidated FULL-TIME EMPLOYEES at the balance-sheet date Corporate Communications Hirte Medien-Service GmbH & Co. KG, financial statements Phone: +49 (0)201 727 20 31 Hamburg 161 Auditor’s report Thomas Cook number 29,070 10,089 - 9,548 Karstadt operates four department store formats, each focusing 162 Responsibility statement Primondo number 16,837 18,067 -6.8 17,966 Fax: +49 (0)201 727 98 53 Karstadt number 24,304 25,453 -4.5 26,608 on different customer requirements: the cosmopolitan stores of [email protected] Printed and produced by Dorsten Druck GmbH, Dorsten Operating segments number 70,211 53,609 31.0 54,122 163 – 167 Further information 2) the Premium Group modeled after KaDeWe, the Karstadt brand Jörg Howe Other segments number 426 1,399 - 1,450 H. & W. Hennes GmbH, Gladbeck 164 Glossary Total number 70,637 55,008 28.4 55,572 Head of Corporate Communications 166 Index department stores, the Karstadt sports sporting goods stores and Phone: +49 (0)201 727 25 38 ARCANDOR SHARE This report was printed on PEFC-certified paper Fax: +49 (0)201 727 37 09 (PEFC = Program for the Endorsement of Forest Earnings per share (undiluted) € 0.08 2.39 -96.7 1.65 the online portal karstadt.de. The leitmotiv for all types of store [email protected] Certification Schemes). Dividend per no-par value share € 0.00 0.00 - 0.00 is that of the modern market place. Rate applying at the balance-sheet date € 23.48 18.75 25.2 21.96 Highest price (01.01. – 30.09./ 31.12.) € 29.21 25.37 15.1 25.37 Lowest price (01.01. – 30.09. / 31.12.) € 17.96 12.93 38.9 12.93 * The data has been adjusted. The adjustments relate to special factors and divestments as well as restructuring expenses in EBITDA. 1) The Other segments comprise: Services and Real estate. The data is not comparable on account of the real estate transaction in 2006. Future-focused statements 2) The Other segments comprise: Services, Real estate and Holding company. Also to be found in this annual report are future-focused statements based on estimates by the Arcandor management. Such statements reflect Arcandor’s view with regard to future events at the time at which they were undertaken and are subject to risks and uncertainties. Many factors may cause the actual results to deviate not inconsiderably from the estimates given here. Such factors include – besides other changes in general economic and business conditions – changes in exchange rates, prices of fuel and interest levels or changes in corpo- rate strategy. Arcandor rejects any intention or obligation to update these statements about the future made at a specific point in time. At a glance Overview of the operating segments of the Arcandor Group CONTENTS Change 30.09.2007 30.09.2006* in % 31.12.2006* THOMAS COOK SALES Thomas Cook Group plc is a leading global tourism group wit 2 – 48 To our shareholders 2 Letter to shareholders Thomas Cook mill. € 8,447.8 2,503.1 ­ 3,886.7 excellent market positions in Europe and North America and a 10 Strategy Primondo mill. € 2,889.4 2,778.0 4.0 3,984.2 22 Corporate Communications Karstadt mill. € 2,861.6 2,940.4 ­2.7 4,372.6 large portfolio of attractive brands. The new group was create 26 Arcandor share Operating segments mill. € 14,198.8 8,221.5 72.7 12,243.5 28 Report of the Supervisory Board Other segments1) mill. € 192.9 213.1 ­ 282.6 in June 2007 by the merger of MyTravel and Thomas C 37 Corporate Governance Reconciliation account mill. € ­110.8 ­128.3 ­ ­169.2 mill. € 14,280.9 8,306.3 71.9 12,356.9 has since then been listed on the London Stock Exchange. 49 – 70 Operating segments EARNINGS 50 Thomas Cook 56 Primondo Thomas Cook mill. € 708.6 45.5 ­ 199.2 62 Karstadt Primondo mill. € ­72.9 ­73.7 1.1 ­40.9 PRIMONDO 70 Insights 2007 Karstadt mill. € ­34.0 ­35.9 5.3 145.9 Operating segments mill. € 601.7 -64.1 ­ 304.2 Primondo has a high­quality portfolio of European universal Other segments 1) , 71 – 100 Consolidated Reconciliation account/Holding company mill. € ­75.0 107.0 ­ 95.7 and specialty mail order companies. Quelle, the core brand in management report EBITDA (adjusted) mill. € 526.7 42.9 ­ 399.9 71 Detailed table of contents EBITDA margin (adjusted) in % 3.7 0.5 ­ 3.2 Universal Mail Order, has leading market positions in Germany 72 Key points Group earnings after minorities mill. € 16.3 479.0 ­96.6 330.3 73 General economic conditions and Central and Eastern Europe, and operates an extensive 75 Business performance in the FINANCIAL SITUATION 2007 short financial year Cash and cash equivalents mill. € 1,505.6 965.6 55.9 1,152.1 multi­channel sales network. The Specialty Mail Order compani Investments mill. € 255.0 167.4 52.3 233.7 101 – 162 Consolidated Depreciation and amortization focus on three selected growth segments. financial statements (not including amortization of goodwill) mill. € 389.0 216.4 ­79.8 346.0 101 Detailed table of contents Net financial liabilities/assets mill. € ­628.9 ­387.7 ­62.2 148.9 102 Consolidated financial Working capital mill.
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