At a glance 2004 2003 * Change in % Sales Over-the-counter retail mill. p 5,699.4 6,130.5 -7.0 Mail order mill. p 7,474.0 8,022.3 -6.8 Services mill. p 1,239.7 1,431.9 -13.4 Real estate mill. p 570.1 586.6 -2.8 Reconciliation account mill. p -1,536.0 -1,743.3 - Group sales mill. p 13,447.2 14,428.0 -6.8 Earnings EBITDA mill. p -428.4 972.1 -144.1 EBITDA (adjusted/not including special factors) mill. p 372.9 711.1 -47.6 EBITDA margin (adjusted/not including special factors) in % 2.8 4.9 - Annual Report 2004 EBTA mill. p -1,269.0 274.1 - EBTA (adjusted/not including special factors) mill. p -146.4 60.1 - EBTA margin (adjusted/not including special factors) in % -1.1 0.4 - Loss/Profit from continuing operations mill. p -1,250.7 157.7 - Loss from discontinued operations mill. p -370.5 -44.5 - Net loss/Profit 2004 – Fresh start and new departure after minority interests mill. p -1,631.2 107.6 - Invested capital mill. p 3,666.7 6,079.3 -39.7 Return on invested capital (ROIC)1) in % 1.1 4.3 - Financial situation Gross cash flow mill. p 497.4 695.0 -28.4 and dividends Cash and cash equivalents mill. p 496.5 156.7 216.9 Depreciation and amortization (not including goodwill) mill. p -424.4 -387.5 -9.5 Dividends mill. p - 75.5 - Structure of the Balance sheet total mill. p 8,845.7 9,192.7 -3.8 balance sheet Equity mill. p 552.1 1,639.4 -66.3 Equity ratio in % 6.2 17.8 - Other information Employees at 31.12.2) number 92,546 100,956 -8.3 Investments 3) mill. p 317.8 384.7 -17.4 Net financial liabilities mill. p 2,825.4 3,342.8 -15.5 Working capital mill. p 1,346.5 1,955.5 -31.1 Branches 2) number 520 517 - Sales space at 31.12. in Over-the-counter retail 2) th. sq. m 2,601.2 2,621.4 -0.8 KARSTADT QUELLE AG Shares on annual average number 110,921,234 106,774,866 3.9 Share Dividend per no-par value share p - 0.71 - Earnings per share p -14.71 1.01 - 04 04 4) p Market price at 31.12. 7.59 15.88 -52.2 Market capitalization/market value at end of year 5) mill. p 1,600.0 2,308.1 -30.7 ANNUAL REPORT ANNUAL REPORT * Values for the previous year adjusted. 2) Including discontinued operations. 4) Information adjusted due to capital measure. 1) EBIT after adjustment for special factors. 3) Not including fi nancial assets. 5) Including own shares. KQ_GB04E_Umschlag 2 15.04.2005 8:37:38 Uhr Over-the-counter retail Department stores · Sports stores In Over-the-counter retail KarstadtQuelle is well positioned in Germany with 220 department stores and sports stores, primarily at 2004 2003 Change in % excellent city-center locations. The department stores operate under the umbrella brand name „Karstadt“, but regionally also under traditional brand names such as KaDeWe (Kaufhaus des Westens), Hertie, Wertheim and Alsterhaus. With a market share of about Sales mill. p 5,699.4 6,130.5 -7.0 40 % the KarstadtQuelle Group’s department stores are No. 1 in Germany and also occupy a leading position in their market segment Employees number 54,401 59,056 -7.9 in Europe. Here we continue to focus on the German market, in which we are represented countrywide. In the future Karstadt will at 31.12. concentrate on a core portfolio of 89 large department stores with over 8,000 sq. m. of sales space each and on the sports stores. Segment Calendar 2005 Your contacts mill. p 1,262.8 2,070.5 -39.0 These stores represent just under 80 % of the current total sales. The alignment towards a homogeneous core business is enabling assets structures and processes to be markedly streamlined and a sustained cost reduction to be achieved. Our 89 large department stores Annual General Meeting Investor Relations will in future stand out by a sharpened, clearly defined profile. As part of the focus on high-margin lifestyle lines the Fashion, Sports, (Düsseldorf) May 24, 2005 Personality und Living sectors are being expanded and Karstadt repositioned. Telephone: +49 (0) 2 01 7 27 – 9816 Interim reports Telefax: +49 (0) 2 01 7 27 – 9854 1st quarter May 12, 2005 E-mail: [email protected] 2nd quarter August 3, 2005 Mail order Universal mail order · Specialty mail order 3rd quarter November 3, 2005 Detlef Neveling The Mail-order segment covers the complete range of universal and specialty mail order in Europe with its two core brands Quelle Director Investor Relations 2004 2003 Change in % and Neckermann. The group’s mail-order suppliers are market leaders in Germany (share of over 30 %) and also occupy a leading Telephone: +49 (0) 2 01 7 27 – 9817 position in other European countries. As classically positioned universal mail order suppliers, Quelle and Neckermann provide Sales mill. p 7,474.0 8,022.3 -6.8 E-mail: [email protected] for the entire range of everyday requirements. With 1,081 catalogs in a total impression of about 1.5 bill. they achieved about Imprint Employees number 33,795 35,518 -4.9 79 % of mail-order sales during the 2004 financial year. Specialty mail order concentrates on precisely defined target groups. The Sylvia Ehlert at 31.12. Publisher 21 specialty mail-order suppliers generated sales of 1.61 bill. (previous year: 1.60 bill. ) in the year under review and published Secretariat, Organization Segment KARSTADT QUELLE AG © mill. p 2,804.5 2,997.5 -6.4 769 different catalogs in an impression of about 270 mill. copies. The group’s mail-order companies are successfully represented Telephone: +49 (0) 2 01 7 27 – 9816 assets Theodor-Althoff-Str. 7, 45133 Essen in 25 European countries. The share contributed to mail-order sales by foreign sales rose to 26.5 % during the 2004 business year E-mail: [email protected] Telephone: +49 (0) 2 01 7 27 – 0 (previous year: 24.1 %). The decisive factor for the success of the KarstadtQuelle mail-order suppliers are their high competence Telefax: +49 (0) 2 01 7 27 – 5216 in the mail-order business, their comprehensive Internet offering and their high standard of customer service. Jürgen Koch Internet: www.karstadtquelle.com Manager Investor Relations Overall conception and realization Telephone: +49 (0) 2 01 7 27 – 9836 HGB Hamburger Geschäftsberichte GmbH E-mail: [email protected] Services Tourism · Retail-related services & Co. KG and KARSTADT QUELLE AG In the Services segment the KarstadtQuelle Group aims to make a sustained earnings contribution by the expansion of retail-related Volker Moege 2004 2003 Change Photos in % services. This applies particularly to the core segments Tourism and Financial and Information services as well as Customer relation- Manager Investor Relations ship management (CRM) services. Here we are consistently utilizing the existing assets in our classic retail business. These include KARSTADT QUELLE AG Telephone: +49 (0) 2 01 7 27 – 7124 Sales mill. p 1,239.7 1,431.9 -13.4 primarily information on about 21 million customers, a customer footfall of about 2.5 million daily in Over-the-counter retail, about Corporate Photo Jens Waldenmaier, Hamburg E-mail: [email protected] Employees Cover and Management Board photographs number 4,046 6,094 -33.6 70 million orders yearly in Mail order and about 128 mill. Internet visits yearly. For strategic reasons we have set up partnerships at 31.12. and photograph of Dr. Middelhoff with companies which are leading in their respective sectors: the tourism group Thomas Cook (joint venture with Deutsche Luft hansa Segment mill. p 162.3 221.5 -26.8 AG), KarstadtQuelle Finanz Service (joint venture with ERGO Versicherungsgruppe AG) and the “HappyDigits” loyalty-card bonus Translation assets program (joint venture with Deutsche Telekom AG). Düchting-Nobelen Translation Services, Corporate Communications Not including Thomas Cook Group Düsseldorf Telephone: +49 (0) 2 01 7 27 – 2031 Reproduction Telefax: +49 (0) 2 01 7 27 – 9853 Hirte Medien-Service GmbH & Co. KG, E-mail: [email protected] Hamburg Real estate Property · Real estate services · Financing Printed and produced by Jörg Howe The Real estate segment is where the KarstadtQuelle Group concentrates its comprehensive real estate portfolio. KARSTADT Dorsten Druck GmbH, Dorsten Director Corporate Communications 2004 2003 Change Telephone: +49 (0) 2 01 7 27 – 2538 in % Immobilien AG & Co. KG centrally controls its valuable location portfolio, which comprises primarily department store real estate H. & W. Hennes GmbH at A1 locations in German towns and cities and also specialty stores and logistics and administrative buildings. The greater part Drucksachenverarbeitung, Gladbeck Telefax: +49 (0) 2 01 7 27 – 3709 Sales mill. p 570.1 586.6 -2.8 of department store real estate in terms of sales space is Group-owned. From the point of view of book value the real estate E-mail: [email protected] Employees number 111 100 11.0 portfolio represents an important part of KarstadtQuelle’s Group assets. The market value is spread mainly among the five most at 31.12. important economic centers Hamburg, Berlin, Munich, Rhine-Ruhr and Rhine-Main. Real estate services offer a wide range of Segment mill. p 1,697.4 2,790.6 -39.2 services such as development and letting as well as center, facility and construction management.