Praktiker Group Annual Report 2012 Annual Report2012 Praktiker Group KEY data 2008 2009 2010 2011 2012 Change in % Profit & loss data Net sales in € m 3,906.8 3,663.4 3,448.3 3,183.0 3,003.2 – 5.6 Germany 2,665.6 2,617.1 2,452.2 2,288.8 2,191.4 – 4.3 thereof Praktiker Germany 1,868.8 1,835.2 1,680.1 1,506.9 1,408.6 – 6.5 thereof Max Bahr 702.4 690.6 685.5 694.8 699.9 0.7 thereof Miscellaneous 94.5 91.4 86.6 87.1 83.0 – 4.8 International 1,241.2 1,046.3 996.1 894.2 811.8 – 9.2 Like-fo-like sales growth in % – 6.0 – 7.2 – 7.3 – 8.4 – 5.5 – Germany – 8.0 – 2.2 – 7.0 – 6.8 – 3.5 – thereof Praktiker Germany – 8.8 – 2.2 – 8.7 – 10.2 – 3.0 – thereof Max Bahr – 5.4 – 2.1 – 2.7 1.3 – 3.7 – International – 0.5 – 19.0 – 8.2 – 12.4 – 10.5 – Gross profit on sales in € m 1,314.1 1,192.0 1,164.6 976.6 942.4 –3.5 Gross profit margin on sales in % 33.6 32.5 33.8 30.7 31.4 0.7 PP EBITA in € m 128.8 62.8 35.3 – 375.1 – 128.8 65.7 Germany 44.9 30.2 24.2 – 291.0 – 111.3 61.8 thereof Praktiker Germany 20.9 0.2 – 1.2 – 262.5 – 90.8 65.4 thereof Max Bahr 25.5 31.4 29.2 – 20.9 – 14.5 30.8 thereof Miscellaneous – 1.6 – 1.5 – 3.8 – 7.6 – 6.0 21.2 International 83.9 32.6 11.1 – 84.1 –17.5 79.2 Net financial result in € m – 49.3 – 44.3 – 41.0 – 59.8 – 35.8 40.1 Earnings before taxes in € m 79.5 18.5 – 5.7 – 594.3 – 164.6 72.3 Net income/loss in € m 4.4 – 9.3 – 33.6 – 554.7 – 188.9 65.9 Earnings per share in € 0.06 – 0.18 – 0.60 – 9.58 – 3.13 67.4 Dividend per share in € 0.10 0.10 0.10 0.00 0.001 – Balance sheet data Total assets in € m 2,146.3 2,082.6 2,031.0 1,514.0 1,476.2 – 2.5 Equity in € m 899.1 878.6 839.9 278.6 135.5 – 51.3 Equity ratio in % of total assets 41.9 42.2 41.4 18.4 9.2 – 9.3 PP Cash and cash equivalents in € m 233.3 263.0 266.3 148.0 82.3 – 44.4 Net financial position in € m – 189.3 – 196.7 – 184.7 – 351.1 – 491,0 – 39.8 Net working capital in € m 411.6 393.9 383.3 347.2 270.1 – 22.2 Other financial data Capital expenditure in € m 117.6 73.3 62.1 70.6 87.7 24.2 Cash flow from operating activities in € m 112.0 83.3 90.6 – 79.2 – 114.7 – 44.8 Operative data Number of stores 436 439 438 439 427 – 2.7 Germany 336 335 331 330 316 – 4.2 thereof Praktiker Germany 241 239 236 235 197 – 16.2 thereof Max Bahr 76 77 78 78 105 34.6 thereof Miscellaneous 19 19 17 17 14 – 17.6 International 100 104 107 109 111 1.8 Number of employees, yearly average on full-time basis 23,632 22,490 21,463 20,000 19,523 – 2.4 Germany 13,189 12,291 11,811 11,239 11,128 – 1.0 thereof Praktiker Germany 9,640 8,877 8,426 8,008 7,589 – 5.2 thereof Max Bahr 3,134 3,009 3,014 2,874 3,188 10.9 thereof Miscellaneous 415 405 371 357 352 – 1.1 International 10,443 10,199 9,652 8,761 8,395 – 4.2 Due to rounding, slight discrepancies in totals and percentage figures may occur. 1Proposal PRAKTIKER GROUP ANNUAL REPORT 2012 CONTENTS TO OUR SHAREHOLDERS Letter to the shareholders ...................................................................................................................................... 4 Members of the management board ...................................................................................................................... 6 GROUP MANAGEMENT REPORT Restructuring programme ...................................................................................................................................... 9 Business-specific and general economic settings .................................................................................................. 14 Income, financial and asset position ...................................................................................................................... 15 Segment reporting ................................................................................................................................................. 23 Data and report according to Sec. 315 para. 4 HGB .............................................................................................. 32 Personnel report ..................................................................................................................................................... 34 Environmental report ............................................................................................................................................. 36 Remuneration report ............................................................................................................................................. 37 Risk report .............................................................................................................................................................. 41 Outlook ................................................................................................................................................................... 48 Report on subsequent events ................................................................................................................................. 51 CONSOLIDATED FINANCIAL STATEMENTS Consolidated income statement ............................................................................................................................. 53 Statement of comprehensive income ..................................................................................................................... 53 Consolidated statement of financial position ......................................................................................................... 54 Consolidated statement of changes in equity ........................................................................................................ 55 Consolidated cash flow statement .......................................................................................................................... 56 Notes to consolidated financial statements............................................................................................................ 58 Accounting principles ....................................................................................................................................... 58 Notes to the consolidated income statement ................................................................................................... 79 Additional information to the consolidated income statement ........................................................................ 83 Notes to the consolidated statement of financial position ............................................................................... 84 Notes to the consolidated cash flow statement ................................................................................................ 101 Notes to the segment data ................................................................................................................................ 102 Other notes ....................................................................................................................................................... 107 Members of the management board and the supervisory board of Praktiker AG ............................................ 108 Assurance of legal representatives......................................................................................................................... 112 Auditor’s report ...................................................................................................................................................... 113 OTHER DATA Report of the supervisory board ............................................................................................................................. 115 Report and declaration on corporate governance .................................................................................................. 119 PRAKTIKER GROUP ANNUAL REPORT 2012 3 TO OUR SHAREHOLDERS LETTER TO THE SHAREHOLDERS Ladies and Gentlemen, 2012 was an extremely turbulent year for Praktiker AG, with even the future of the Group as a going concern at stake for a time. In view of the difficult economic situation, there were several changes in the management, far-reaching interventions in existing organisational structures, and changes in the strategic orientation of operating activities and in the financing concept for the ongoing restructuring programme. These changes were accompanied by rumours of all kinds that considerably unsettled employees, customers and business partners at times. I cannot and do not wish to keep looking back. I took up my position in October 2012 with the aim of se- curing and shaping the future of Praktiker AG. For this reason, I am looking forward and counting on finally regaining continuity at Praktiker AG in our strategy, orientation and management. There are positive signs of this. In its new line-up, the management board successfully implemented the planned capital increase representing the final major component of the overall financing for the reorganisa- tion in December 2012. This paved the way to some extent for continuing to successfully implement this repositioning. We have already started on this. Alongside the turbulence described above, there was also one constant last year: the implementation of the planned measures to reduce costs and enhance efficiency, which had been intended from the outset as accompanying measures and even as prerequisites for the stra- tegic reorientation. 4 PRAKTIKER GROUP ANNUAL REPORT 2012 TO OUR SHAREHOLDERS LETTER TO THE SHAREHOLDERS These measures included the merger of the Group head offices in Hamburg, the traditional headquarters of the future primary