¹Pursuant to IFRS, without discontinued operations

Our Consumer Goods and Building Technology business sector again performed well in 2007. Sales reached 11.7 billion euros, 6.5 % higher than the previous year. The Power Tools, Security Systems, and Household Appliances divisions were the principal contributors to this encouraging performance. Demand for heating technology did not live up to our expectations, primarily as a result of the uncertainty surrounding energy policies in western Europe. Nonetheless, all divisions were able to consolidate or even extend their leading market positions, as a result of both organic growth and acquisitions. True to our slogan “Invented for life,” the key sales drivers were product innovations and product improvements for professional and DIY tools, for eco-friendly heating, and for personal security and safety. We expanded our global presence further, among other things by establishing new manufacturing facilities and other locations in Argentina, China, Romania, Russia, and the Czech Republic.