We shall continue to press ahead with the trans- formation of the Group in the interest of our shareholders. Our shareholders are profiting from an important value-enhancing potential. The operating businesses at Karstadt, Primondo Annual report 2006 Annual report and Thomas Cook are gaining in dynamism and will increasingly generate solid, organic growth. Continuing on the upswing At the same time the Group has high strategic Annual Report 2006 potential. We want to actively pursue consoli- dation in our core business segments and create added value through acquisitions, mergers and partnerships. Our aim is to further improve our excellent market position in the core business segments and lastingly and considerably increase the value of the Group for our shareholders. At a glance * Imprint Your contacts Karstadt Change Karstadt Warenhaus GmbH operates three department store formats in the market: stores of the Premium Group 2006 2005* in % (KaDeWe Berlin, Alsterhaus Hamburg, Oberpollinger Munich), Karstadt department stores and KarstadtSports sports Sales Karstadt mill. p 4,898.8 4,734.1 3.5 Publisher Investor Relations © stores. As an overall format, in addition karstadt.de will be expanded as an online department store under Karstadt’s Mail order/Primondo mill. p 4,205.4 4,500.3 -6.6 Karstadt QUELLE AG Telephone: +49 (0) 2 01 7 27 – 9816 Theodor-Althoff-Str. 2, 45133 Essen Telefax: +49 (0) 2 01 7 27 – 9854 multichannel strategy. Thanks to their clear positioning and focus on the modern market place Karstadt’s department Thomas Cook mill. p 3,886.7 3,828.7 1.5 Telephone: +49 (0) 2 01 7 27 – 0 E-mail: [email protected] stores have once more become the main points of attraction at excellent prime locations in city-centers. Karstadt Operating segments mill. p 12,990.9 13,063.1 -0.6 Telefax: +49 (0) 2 01 7 27 – 5216 department and sports stores offer interesting ranges, attractive product lines and cross-category theme presentations 1) p Other segments mill. 216.8 236.0 - Internet: www.karstadtquelle.com Detlef Neveling as well as friendly service and professional advice. Reconciliation account mill. p -157.2 -127.6 - Head of Investor Relations mill. p 13,050.5 13,171.5 -0.9 Overall conception and realization Telephone: +49 (0) 2 01 7 27 – 9817 HGB Hamburger Geschäftsberichte GmbH E-mail: [email protected] Operating segments in brief * Earnings Karstadt mill. p 145.9 65.2 123.6 & Co. KG and KARSTADT QUELLE AG Mail order/Primondo mill. p -31.9 4.0 - Adjusted sales Adjusted EBITDA Investments Employees Ilka Becker f f f in bill. in mill. in mill. (at 31.12., number) Thomas Cook mill. p 199.2 191.3 4.1 Photos Assistant, Organization KARSTADT QUELLE AG Telephone: +49 (0) 2 01 7 27 – 9816 2006 2005 2006 2005 2006 2005 2006 2005 Operating segments mill. p 313.2 260.5 20.2 Corporate Photo Jens Waldenmaier, Hamburg E-mail: [email protected] Other segments 1) mill. p 166.1 330.0 - Karstadt 4.90 4.73 145.9 65.2 119.8 135.3 36,206 37,056 Christian Klose Photographie, Essen Reconciliation account/Holding company mill. p -70.4 -37.9 - Mail order 4.21 4.50 -31.9 4.0 68.7 67.5 22,611 24,907 (Management Board) Jürgen Koch EBITDA (adjusted) mill. p 408.9 552.6 -26.0 Thomas Cook 3.89 3.83 199.2 191.3 30.7 41.9 10,724 13,534 Investor Relations Manager EBITDA margin (adjusted) in % 3.1 4.2 - Reproduction Telephone: +49 (0) 2 01 7 27 – 9836 * The figures were adjusted. The adjustments relate to special factors and divestments. 3) EBITDA (adjusted) before adjustments mill. p 222.4 198.9 11.8 Hirte Medien-Service GmbH & Co. KG, E-mail: [email protected] Group earnings after minorities mill. p 345.6 -316.5 209.2 Hamburg Karin Widenmann Financial situation Free cash flow mill. p 3,018.9 1,960.4 54.0 Printed and produced by Investor Relations Manager Mail order/Primondo Cash and cash equivalents mill. p 1,152.1 707.2 62.9 Dorsten Druck GmbH, Dorsten Telephone: +49 (0) 2 01 7 27 – 7124 Mail order is concentrating on the Quelle brand as number one amongst universal mail-order suppliers in Europe, on Investments mill. p 233.7 258.8 -9.7 H. & W. Hennes GmbH, Gladbeck E-mail: [email protected] the growth segments in special mail order and on expansion in the Central Eastern European growth markets and in Depreciation and amortization (not including amortization of goodwill) mill. p 346.0 356.8 3.0 Russia. Quelle will further improve its leading position as a multi-channel provider. Special mail order is concentra- Net financial assets/Net financial liabilities mill. p 148.9 -2,689.5 105.5 Corporate Communications ting on three growth segments: customers in the over-60s age group with high purchasing power (“Golden Agers”), Working capital mill. p 387.2 1,225.8 -68.4 Telephone: +49 (0) 2 01 7 27 – 2031 Premium segments (e.g. exclusive fashion) and Communities (e.g. the ecology-conscious, mothers-to-be). By focusing Telefax: +49 (0) 2 01 7 27 – 9853 international operations on the growth markets in Central Eastern Europe and Russia Quelle, together with interna- Full-time employees at Karstadt number 26,608 28,701 -7.3 E-mail: [email protected] the balance-sheet date tional sales in Special mail order, will in the medium term achieve an internationalization level of 50 %. Mail order/Primondo number 17,966 19,803 -9.3 Thomas Cook number 9,548 11,649 -18.0 Jörg Howe Head of Corporate Communications Operating segments number 54,122 60,153 -10.0 Telephone: +49 (0) 2 01 7 27 – 2538 Thomas Cook Other segments 2) number 1,450 1,468 -1.2 Telefax: +49 (0) 2 01 7 27 – 3709 The tourism group has at its disposal a large portfolio of important brands, such as Thomas Cook, Neckermann Reisen, Total number 55,572 61,621 -9.8 E-mail: [email protected] Bucher Last Minute and Pegase. Thomas Cook offers its customers a wide selection of package holidays as well as KARSTADT QUELLE AG Shares on annual average number in th. 200,610 199,374 0.6 holiday components and services tailored to their personal needs. These products are sold through a large number of share Earnings per share (undiluted) p 1.72 -1.59 - channels, both the Group’s own and those operated in partnership with others. Thomas Cook increasingly operates a Earnings per share (diluted) p 1.62 - - highly flexible business model with the lowest possible capital tie-up (asset light). Thanks to the acquisition of Future-focused statements Dividend per no-par value share p 0.00 0.00 - Lufthansa’s 50 percent share in Thomas Cook and the planned merger with the leading British tourism company Rate applying at the Also to be found in this annual report are future-focused statements based on estimates by the KarstadtQuelle management. MyTravel the newly positioned Thomas Cook Group will become an internationally leading tourism company. balance-sheet date (31.12.) p 21.96 12.83 71.2 Such statements reflect KarstadtQuelle’s view with regard to future events at the time at which they were undertaken and are highest price (01.01. – 31.12.) p 25.37 12.83 97.7 subject to risks and uncertainties. Many factors may cause the actual results to deviate not inconsiderably from the estimates p lowest price (01.01. – 31.12.) 12.93 7.08 82.6 given here. Such factors include – besides other changes in general economic and business conditions – changes in exchange * The figures were adjusted. The adjustments relate to special factors and divestments. rates, prices of fuel and interest levels or changes in corporate strategy. KarstadtQuelle rejects any intention or obligation to 1) The Other segments comprise: Services and Real estate. 2) The Other segments comprise: Services, Real estate and Holding company. update these statements about the future made at a specific point in time. 3) Before reclassification of the discontinued operations and without Real Estate, previous year adjusted. At a glance * Imprint Your contacts Karstadt Change Karstadt Warenhaus GmbH operates three department store formats in the market: stores of the Premium Group 2006 2005* in % (KaDeWe Berlin, Alsterhaus Hamburg, Oberpollinger Munich), Karstadt department stores and KarstadtSports sports Sales Karstadt mill. p 4,898.8 4,734.1 3.5 Publisher Investor Relations © stores. As an overall format, in addition karstadt.de will be expanded as an online department store under Karstadt’s Mail order/Primondo mill. p 4,205.4 4,500.3 -6.6 Karstadt QUELLE AG Telephone: +49 (0) 2 01 7 27 – 9816 Theodor-Althoff-Str. 2, 45133 Essen Telefax: +49 (0) 2 01 7 27 – 9854 multichannel strategy. Thanks to their clear positioning and focus on the modern market place Karstadt’s department Thomas Cook mill. p 3,886.7 3,828.7 1.5 Telephone: +49 (0) 2 01 7 27 – 0 E-mail: [email protected] stores have once more become the main points of attraction at excellent prime locations in city-centers. Karstadt Operating segments mill. p 12,990.9 13,063.1 -0.6 Telefax: +49 (0) 2 01 7 27 – 5216 department and sports stores offer interesting ranges, attractive product lines and cross-category theme presentations 1) p Other segments mill. 216.8 236.0 - Internet: www.karstadtquelle.com Detlef Neveling as well as friendly service and professional advice.