Beiersdorf AG

Interim / Quarterly Report • Nov 7, 2008

Interim Report January – September 2008

NIVEA VISAGE Expert Lift: Innovative Products for Women over 50.

Contents

• 03 Business Developments Overview
• 04 Segment Overview
• 05 Top Topics
• 06 The Beiersdorf Share

Interim Management Report – Group

• 07 Results of Operations Group
• 08 Results of Operations Business Segments
• 12 Balance Sheet Structure Group
• 13 Financial Position Group, Employees
• 14 Other Disclosures, Opportunities and Risks
• 15 Outlook for 2008

Interim Consolidated Financial Statements

• 16 Income Statement, Balance Sheet
• 17 Cash Flow Statement
• 18 Statement of Changes in Equity, Statement of Recognized Income and Expense
• 19 Selected Explanatory Notes

About the cover:

2 Beiersdorf Interim Report January – September 2008 The majority of today's women between the ages of 50 and 60 are active and feel signifi cantly younger than they are. Therefore, it's no wonder they don't want to look older and like to use innovative, effective anti-aging products. NIVEA VISAGE's new "Expert Lift" face care range is tailored to the needs of women's skin over the age of 50, supplementing the extensive product range in the anti-age segment. With regular use, the intensive moisturizing formula tightens facial contours from within and helps give skin a noticeably fi rmer and smoother appearance. The total care system consists of a day cream, night cream, and eye cream, as well as a beauty tonic.

Business Developments – Overview

Dynamic Sales Growth Continues

• Sales growth of 11.8% (adjusted for currency translation effects)
• EBIT margin* at 12.1%
• Profit after tax* €394 million

Outlook for Fiscal Year 2008

• Sales growth (organic) above 8%
• EBIT margin* (without acquisitions) up on previous year

Beiersdorf at a Glance
	Jan. 1–Sept. 30,	Jan. 1–Sept. 30,
in € million (unless otherwise stated)	2007	2008
Sales	4,167	4,547
Change in % (adjusted for currency translation effects)	9.4	11.8
Change in % (organic)	9.4	8.5
Change in % (nominal)	8.1	9.1
Consumer	3,531	3,892
tesa	636	655
Operating result (EBIT)	467	561
Operating result (EBIT, excluding special factors)*	531	548
Profit after tax	338	402
Profit after tax (excluding special factors)*	380	394
Return on sales after tax in %	8.1	8.8
Return on sales after tax in % (excluding special factors)*	9.1	8.7
Earnings per share in €	1.49	1.76
Earnings per share in € (excluding special factors)*	1.68	1.72
Gross cash flow	361	431
Capital expenditure (incl. financial assets)	74	111
Research and development expenses	91	109
Employees (as of September 30)	17,285	21,732

* Excluding special factors due to the realignment of the Consumer Supply Chain (exclusively in Europe).

Segment Overview

Business Developments by Business Segment

Sales	July 1–Sept. 30,		July 1–Sept. 30,		Jan. 1 – Sept. 30,		Jan. 1 – Sept. 30,			Change in %
(in € million)		2007 % of total		2008 % of total		2007 % of total		2008 % of total	nominal	adj. for curr. trans. effects
Consumer	1,105	83.9	1,243	85.4	3,531	84.7	3,892	85.6	10.2	13.0
tesa	212	16.1	213	14.6	636	15.3	655	14.4	3.0	4.8
Total	1,317	100.0	1,456	100.0	4,167	100.0	4,547	100.0	9.1	11.8
EBITDA	July 1–Sept. 30,	2007	July 1–Sept. 30,	2008	Jan. 1 – Sept. 30,	2007	Jan. 1 – Sept. 30,	2008		Change in %
(in € million)		% of sales		% of sales		% of sales		% of sales		nominal
Consumer	143	12.9	152	12.3	467	13.2	551	14.2		18.1
tesa	30	13.9	30	14.0	88	13.8	90	13.7		2.6
Total	173	13.1	182	12.5	555	13.3	641	14.1		15.6
Operating Result (EBIT)	July 1–Sept. 30,	2007	July 1–Sept. 30,	2008	Jan. 1 – Sept. 30,	2007	Jan. 1 – Sept. 30,	2008		Change in %
(in € million)		% of sales		% of sales		% of sales		% of sales		nominal
Consumer	129	11.6	131	10.5	397	11.2	489	12.6		23.3
Consumer (excluding special factors)*	135	12.2	133	10.7	461	13.0	476	12.2		3.4
tesa	23	11.1	23	10.9	70	11.0	72	11.0		2.9
Total	152	11.5	154	10.6	467	11.2	561	12.3		20.3
Total (excluding special factors)*	158	12.0	156	10.7	531	12.7	548	12.1		3.3
Gross Cash Flow	July 1–Sept. 30,	2007	July 1–Sept. 30,	2008	Jan. 1 – Sept. 30,	2007	Jan. 1 – Sept. 30,	2008		Change in %
(in € million)		% of sales		% of sales		% of sales		% of sales		nominal
Consumer	84	7.6	116	9.4	293	8.3	363	9.3		23.8
tesa	26	12.4	23	10.9	68	10.7	68	10.4		0.5
Total	110	8.4	139	9.6	361	8.7	431	9.5		19.4

Business Developments by Region

Sales (in € million)	July 1–Sept. 30,	2007 % of total	July 1–Sept. 30,	2008 % of total	Jan. 1 – Sept. 30,	2007 % of total	Jan. 1 – Sept. 30,	2008 % of total	nominal	Change in % adj. for curr. trans. effects
Europe	910	69.1	976	67.0	2,994	71.8	3,171	69.7	5.9	6.4
Americas	197	14.9	208	14.3	572	13.8	598	13.1	4.5	11.9
Africa /Asia/Australia	210	16.0	272	18.7	601	14.4	778	17.2	29.3	38.5
Total	1,317	100.0	1,456	100.0	4,167	100.0	4,547	100.0	9.1	11.8
Operating Result (EBIT) (in € million)	July 1–Sept. 30,	2007 % of sales	July 1–Sept. 30,	2008 % of sales	Jan. 1 – Sept. 30,	2007 % of sales	Jan. 1 – Sept. 30,	2008 % of sales		Change in % nominal
Europe	125	13.7	145	14.8	400	13.4	518	16.3		29.6
Europe (excluding special factors)* Americas	131 8	14.4 4.3	147 10	15.1 5.2	464 20	15.5 3.5	505 16	15.9 2.8		8.9 –16.7
Africa /Asia/Australia	19	8.9	–1	–0.5	47	7.9	27	3.5		–42.8
Total	152	11.5	154	10.6	467	11.2	561	12.3		20.3
Total (excluding special factors)*	158	12.0	156	10.7	531	12.7	548	12.1		3.3

* Excluding special factors due to the realignment of the Consumer Supply Chain. Figures in percent are calculated based on thousands of euros.

Top Topics

Brand Experience: New NIVEA Houses in Dubai and Berlin

Following the resounding success of the NIVEA Haus in Hamburg, Beiersdorf is opening Houses number two and three. The basic idea behind the Houses – being close to consumers and offering them easy access to quick, relaxing wellness treatments – will be transposed to the new locations in Dubai (opening in November 2008) and Berlin (opening in Spring 2009), and will be tailored to changing wishes and local needs.

Like the NIVEA Haus in the Company's home city, the new NIVEA Houses have prime locations: The House in Dubai is situated in the world's largest shopping center, the Dubai Mall, while the NIVEA Haus in Berlin is being built near the Brandenburg Gate on the boulevard "Unter den Linden."

NIVEA: Brand Leader in Poland Records Strong Growth

NIVEA Polska Sp. z o.o., one of the largest and most successful cosmetics companies in Poland, can point to above-average growth: In 2007, the company's non-Group sales increased by 17.2% compared with the previous year to 551 million zloty (approx. €146 million). Continued strong growth is also expected for the coming years. NIVEA leads the market for skin and beauty care in six product categories in Poland. In addition to face care, these include the deodorants, hand and body care, baby care, men's care, and lip care segments.

The Polish production facility in Poznán was expanded in 2008, and is now one of Beiersdorf's key locations: 90% of its production volume is exported to 34 countries on six continents.

Award for Beiersdorf's Research and Development

Beiersdorf's research and development has won an award for its technology management from the internationally renowned Fraunhofer Institute IPT. The prize went to a total of five out of 170 European companies researched. At Beiersdorf, the only prizewinner in the consumer goods segment, the judges emphasized not only the strong focus on consumers during product development but also the Company's systematic project evaluation, its use of IT platforms to manage knowledge, patents, and projects, and its corporate culture. Groundbreaking innovations and excellent product quality have always been the foundation of Beiersdorf's success. Most of the research takes place at the Skin Research Center in Hamburg – the largest and most advanced facility of its kind in Germany, and one of the most important in the world.

Further Company information can be found on the Internet at www.Beiersdorf.com.

The Beiersdorf Share

The third quarter saw continuing tension on the financial markets throughout the world. The crisis that spilled over from the US banking market to Europe and Asia also had a tangible impact on the stock markets, with financial stocks weighing heavily on key European indices. Shortly thereafter, news of possible measures to stabilize the banking sector led to price movements of historic proportions. In addition, continuing high commodities prices and adjustments on the real estate markets impacted the global economy. Ongoing strong inflationary pressure led to a high degree of uncertainty, while cost pressure indicators trended upwards. The European Central Bank considered alleviating the situation by cutting interest rates, but did not implement them in the third quarter. International stock market performance directly reflected investors' changing moods. As a result, the DAX also changed direction frequently, with a relatively stable phase at mid-quarter being followed by a clear downward trend. This key German index closed the quarter at 5,831 points.

The consumer goods manufacturers in the European HPC (Household and Personal Care) Index published their quarterly figures in August. Although stock valuations for the sector continued to be extremely low even after this, investors remained hesitant due to the financial crisis. The HPC Index recorded high volatility and was unable to distance itself clearly from the other indices at the end of the third quarter.

Beiersdorf shares held their own over the course of the third quarter. The share price clearly broke away from the indices, gaining significant ground against the market trend at the end of the quarter. The second quarter results and information on the acquisition in China, which were presented in the course of a conference call, were initially received cautiously by the markets. The management provided information on the background to the acquisition and the current market assessment in a large number of discussions with capital market players – including two investor conferences in London and a roadshow in Edinburgh. Following at times uneven performance in an extremely volatile environment, the shares closed the quarter at €44.81.

Results of Operations – Group

• Sales growth of 11.8%
• EBIT margin (excluding special factors) at 12.1%
• Profit after tax (excluding special factors) €394 million

In the period up to and including the third quarter, the Group achieved sales growth of 11.8% (adjusted for currency translation effects). The Consumer business segment contributed to this strong result with sales up 13.0%, while tesa sales rose by 4.8%. At current exchange rates, sales rose by 9.1% to €4,547 million (previous year: €4,167 million).

Income Statement
(in € million)	Jan. 1–Sept. 30, 2007	Jan. 1–Sept. 30, 2008	Change in %
Sales	4,167	4,547	9.1
Cost of goods sold	–1,362	–1,484	8.9
Gross profi t	2,805	3,063	9.2
Marketing and selling expenses	–1,963	–2,169	10.5
Research and development expenses	–91	–109	19.5
General and administrative expenses	–185	–215	16.4
Other operating expenses (net)	–35	–22	–37.8
Operating result (EBIT, excluding special factors)	531	548	3.3
Special factors due to the realignment of the Consumer Supply Chain	–64	13	-
Operating result (EBIT)	467	561	20.3
Financial result	21	29	39.1
Profi t before tax	488	590	21.1
Income taxes	–150	–188	25.8
Profi t after tax	338	402	19.0
Basic/diluted earnings per share (in €)	1.49	1.76	17.8

The operating result excluding special factors increased from €531 million to €548 million. The corresponding EBIT margin was 12.1% (previous year: 12.7%). Without consideration of our acquisitions which took place at the end of 2007 EBIT margin was 12.9%.

The financial result rose, based on higher interest income, by €8 million to €29 million (previous year: €21 million).

Prior year's income taxes included a positive one-time effect of the recalculation of deferred taxes amounting to €19 million, resulting from the reduction of tax rates in Germany starting in 2008.

Profit after tax increased by €64 million to €402 million (previous year: €338 million). Profit after tax excluding special factors amounted to €394 million (previous year: €380 million); the corresponding return on sales after tax was 8.7% (previous year: 9.1%).

Earnings per share amounted to €1.76 (previous year: €1.49). Earnings per share excluding special factors rose to €1.72 (previous year: €1.68).

Results of Operations – Business Segments

Consumer

Consumer business segment up 13.0% on previous year

Consumer EBIT margin (excluding special factors) at 12.2%

Consumer (Jan. – Sept.) (in € million)	Europe	Americas	Africa /Asia/ Australia	Total
Sales 2008	2,688	529	675	3,892
Change (adjusted for currency translation effects)	7.2%	12.5%	42.5%	13.0%
Change (organic)*	5.8%	12.5%	22.7%	9.2%
Change (nominal)	6.7%	5.2%	32.7%	10.2%
EBIT 2008**	455	11	10	476
EBIT margin 2008**	16.9%	2.1%	1.4%	12.2%
EBIT 2007**	414	13	34	461
EBIT margin 2007**	16.4%	2.6%	6.6%	13.0%

* Excluding sales of business acquired at the end of 2007 (C-BONS Hair Care, 50% Beiersdorf AG Switzerland).

** Excluding special factors due to the realignment of the Consumer Supply Chain (Europe only).

Sales rose by 13.0% (adjusted for currency translation effects) in the first nine months of the year. Double-digit growth was again seen in the Eastern Europe, Latin America, and Africa/Asia/Australia regions. Excluding the acquisition of our Chinese hair care business at the end of 2007 and the increase in the interest in Beiersdorf AG (Switzerland) to 100%, sales grew 9.2%. At current exchange rates, the Consumer business segment increased sales by 10.2% to €3,892 million (previous year: €3,531 million).

Global NIVEA sales rose by 10.9%. This positive development was driven primarily by strong sales growth for NIVEA DEODORANT, NIVEA Hair Care, NIVEA FOR MEN, and NIVEA Bath Care. NIVEA VISAGE Expert Lift, a new innovative anti-aging range, was launched on the market in September. Sales growth for the Eucerin and la prairie brands was also in the double-digit range. Eucerin launched the DermoDENSIFYER range, and la prairie the Advanced Marine Biology Cream, with resounding success.

Consumer EBIT (excluding special factors) increased to €476 million (previous year: €461 million). The corresponding EBIT margin was 12.2% (previous year: 13.0%). EBIT margin without influence of acquisitions was, at 13.2%, slightly above the previous year.

Consumer Sales in Europe (Jan. – Sept.) (in € million)	Germany	Western Europe (not including Germany)	Eastern Europe	Total
Sales 2008	738	1,453	497	2,688
Change (adjusted for currency translation effects)	2.0%	6.3%	19.7%	7.2%
Change (nominal)	2.0%	4.8%	21.3%	6.7%

In Europe, sales in the Consumer business segment grew by 7.2% in comparison with the previous year (adjusted for currency translation effects). At current exchange rates, sales rose by 6.7% to €2,688 million (previous year: €2,520 million).

Sales in Germany were up 2.0% on the previous year. Our NIVEA DEODORANT, NIVEA Hair Care, and NIVEA BEAUTÉ brands together with Florena accounted for a significant share of sales growth. By contrast, sales of Eucerin and NIVEA body products remained below the previous year's level.

Sales in Western Europe rose by 6.3% (adjusted for currency translation effects). Greece (+9.7%) and the France/Benelux Group (+5.2%) in particular showed encouraging sales growth. NIVEA Hair Care, NIVEA Bath Care, and NIVEA DEODORANT developed very well, as did our Eucerin brand. Excluding the newly acquired share of sales in Switzerland, growth in Western Europe amounted to 3.8%.

Eastern Europe again generated strong sales growth of 19.7%. We again recorded doubledigit growth rates in Russia, Poland, and all the other major Eastern European markets.

NIVEA VISAGE, NIVEA DEODORANT, NIVEA Hair Care, and NIVEA FOR MEN in particular contributed significantly to sales in Russia. Sales growth in Poland was particularly strong for NIVEA Hair Care, NIVEA Baby, and NIVEA VISAGE.

Consumer EBIT in Europe (excluding special factors) increased to €455 million (previous year: €414 million). The corresponding EBIT margin rose to 16.9% (previous year: 16.4%).

Consumer Sales in the Americas
(Jan. – Sept.) (in € million)	North America	Latin America	Total
Sales 2008	221	308	529
Change (adjusted for currency translation effects)	2.9%	21.1%	12.5%
Change (nominal)	–8.1%	17.3%	5.2%

In the Americas region, sales increased by 12.5% (adjusted for currency translation effects). At current exchange rates, sales amounted to €529 million, up 5.2% on the previous year (€503 million).

In North America, sales (adjusted for currency translation effects) were up 2.9% on the previous year. The positive development of the focus categories NIVEA body, NIVEA FOR MEN, and Eucerin continued. These increases offset the decline in sales due to the sale of the plaster business in 2007 among others.

In Latin America, we again achieved excellent double-digit growth with sales up 21.1% (adjusted for currency translation effects). All our major markets again contributed to the dynamic growth. In addition to Mexico (+18.0%) and Brazil (+17.9%), Venezuela (+39.6%) and Argentina (+38.1%) in particular recorded strong growth rates. NIVEA DEODORANT, NIVEA body, and NIVEA SUN in particular contributed significantly to sales in this region.

Consumer EBIT in America amounted to €11 million (previous year: €13 million). The EBIT margin was 2.1% (previous year: 2.6%).

Consumer Sales in Africa/Asia/Australia (Jan. – Sept.) (in € million)	Africa/Asia/Australia
Sales 2008	675
Change (adjusted for currency translation effects)	42.5%
Change (nominal)	32.7%

At 42.5%, Africa/Asia/Australia achieved excellent sales growth (adjusted for currency translation effects). At current exchange rates, sales amounted to €675 million, up 32.7% on the previous year (€508 million). Not including sales generated by the Chinese hair care and styling brands acquired at the end of 2007, sales in this region increased by 22.7%.

Sales by our NIVEA company in China were up 43.7%. Our companies in South Africa (+44.4%), the Middle East (+30.1%), and Thailand (+21.0%) also recorded particularly strong growth rates.

In China, the positive trend was driven primarily by the increased growth of NIVEA body, NIVEA FOR MEN, and NIVEA VISAGE. In South Africa, NIVEA DEODORANT and NIVEA body were again the key growth drivers. Thailand recorded particularly strong sales of NIVEA FOR MEN, NIVEA DEODORANT, and Eucerin. Sales in Japan remained slightly down on the previous year, with strong increases of NIVEA FOR MEN and NIVEA SUN not quite offsetting NIVEA body's decline in sales.

EBIT growth in this region has been impacted by expanded marketing investments in the Chinese hair care business. Consumer EBIT in the region amounted to €10 million (previous year: €34 million). The EBIT margin was 1.4% (previous year: 6.6%). Without consideration of the Chinese hair care business, EBIT margin was 6.9%.

tesa

tesa business segment grows by 4.8%

tesa EBIT margin at 11.0%

tesa (Jan. – Sept.)
(in € million)	Europe	Americas	Africa/Asia/ Australia	Total
Sales 2008	483	69	103	655
Change (adjusted for currency translation effects)	1.9%	8.2%	17.0%	4.8%
Change (organic)	1.9%	8.2%	17.0%	4.8%
Change (nominal)	2.0%	–0.2%	10.6%	2.9%
EBIT 2008	50	5	17	72
EBIT margin 2008	10.2%	8.1%	16.9%	11.0%
EBIT 2007	50	6	14	70
EBIT margin 2007	10.5%	9.5%	14.8%	11.0%

tesa sales were up 4.8% (adjusted for currency translation effects) on the previous year. At current exchange rates, tesa achieved sales of €655 million, an increase of 2.9% in comparison with the previous year.

The present positive trend could be maintained in a weaker economic environment. In the industrial business, highest sales growth was achieved again with the automotive industry and with customers from the electrical and electronics industry. The consumer business showed a continuing positive development, too, despite a weaker market environment.

Latin America (+19.0%) and Africa/Asia/Australia (+17.0%) regions in particular again recorded double-digit sales growth in the tesa segment.

EBIT was €72 million (previous year: €70 million), EBIT margin was 11.0% (previous year: 11.0%).

Balance Sheet Structure – Group

Balance Sheet
Assets (in € million)	Dec. 31, 2007	Sept. 30, 2007	Sept. 30, 2008
Non-current assets	1,081	750	1,135
Inventories	598	590	691
Other current assets	1,088	1,071	1,293
Cash and cash equivalents	1,117	1,369	1,191
	3,884	3,780	4,310
Equity and liabilities (in € million)	Dec. 31, 2007	Sept. 30, 2007	Sept. 30, 2008
Equity	2,070	1,972	2,306
Non-current liabilities	561	520	556
Current liabilities	1,253	1,288	1,448

Non-current assets increased by €54 million to €1,135 million compared to December 31, 2007. In 2008, capital expenditure rose to €111 million (previous year: €72 million). €91 million of this figure was attributable to the Consumer business segment (previous year: €57 million) and €20 million to tesa (previous year: €15 million). Depreciation and amortization amounted to €80 million (previous year: €88 million). Due to the good business development trade receivables have increased. Other current assets additionally have risen caused by the purchase of short-term securities of €131 million. Cash and cash equivalents decreased correspondingly.

Non-current liabilities were €556 million. The increase in tax provisions and liabilities as well as in other provisions resulting from operating activities caused current liabilities to swell to €1,448 million.

Financing Structure

Dec. 31, 2007	53%	15%	32%
Sept. 30, 2007	52%	14%	34%
Sept. 30, 2008	53%	13%	34%

Equity Non-current liabilities Current liabilities

Financial Position – Group

Cash Flow Statement
(in € million)	Jan. 1–Sept. 30, 2007	Jan. 1–Sept. 30, 2008
Gross cash flow	361	431
Change in working capital	–44	–104
Net cash flow from operating activities	317	327
Net cash flow from investing activities	–1	–94
Free cash flow	316	233
Net cash flow from financing activities	–170	–162
Exchange rate and other changes	–7	3
Net change in cash and cash equivalents	139	74
Cash and cash equivalents as of Jan. 1	1,230	1,117
Cash and cash equivalents as of Sept. 30	1,369	1,191

Gross cash flow amounted to €431 million. The net cash outflow from changes in working capital totaled €104 million. Overall, the net cash flow from operating activities was €327 million. The net cash outflow from investing activities amounted to €94 million. Capital expenditure for investments was €111 million and for securities to €131 million. Cash inflows were achieved by the sale of fixed assets (€112 million) and by interest and other cash inflows (€36 million). Free cash flow totaled €233 million. The net cash outflow from financing activities amounted to €162 million, due to the dividend payment of €159 million as well as interest and other financing expenses in the amount of €3 million. Cash and cash equivalents totaled €1,191 million.

Employees

The number of employees grew by 631 to 21,732 compared to the figure on December 31, 2007. As of September 30, 17,827 employees worked in the Consumer business segment and 3,905 at tesa.

Other Disclosures

Sale of BODE Chemie

On October 20, 2008, Beiersdorf sold its German affiliate BODE Chemie GmbH & Co. KG, taking effect at year-end, 2008, to Paul Hartmann AG, Heidenheim (Germany).

BODE Chemie produces and sells disinfectants for hands, skin, instruments, and surfaces. This segment is very different from the rest of Beiersdorf's Consumer business due to its focus on hospitals and wholesalers. BODE Chemie generated sales of around €70 million in 2007.

Opportunities and Risks

For more information on opportunities and risks, please refer to our Risk Report in the Group Management Report as of December 31, 2007 and the disclosures in the Interim Management Report as of June 30, 2008. There were no significant changes in opportunities and risks as of September 30, 2008.

Outlook for 2008

Expected Macroeconomic Developments

The effects of the current financial crisis on economic developments for the remaining months of the year cannot be estimated as yet. However, the statements made in the last interim report in relation to the full financial year are primarily still valid.

The global cosmetics market is expected to continue its long-term trend growth of around 3% this year.

We are anticipating moderate growth in the major Western European markets. By contrast, we continue to expect significant growth in Eastern Europe, Latin America, and Asia.

As in previous years, we are forecasting substantial regional variations in performance for tesa's industry and consumer markets. We see high to medium single-digit growth rates in Asia and Eastern Europe, while low single-digit growth rates are likely in more mature markets.

Expected Business Developments

We expect to see organic sales growth for the Beiersdorf Group in excess of 8% for fullyear 2008, well above the respective market rates.

The EBIT margin is expected to increase further on a like-for-like basis as compared with the previous year. The Chinese hair care and styling brands acquired at the end of 2007 are paving the way for a significant growth in sales in the year 2008 and in the year 2009 with substantial marketing investments. As a result, EBIT growth for the Group will be lower than sales growth this year.

As part of the realignment of the Consumer Supply Chain, we are anticipating nonrecurring income of approximately €15 million.

We expect to see organic sales growth in the Consumer business segment of between 8% and 9%. The business activities acquired in China and Switzerland will further increase this sales growth. We are forecasting especially strong organic growth rates in China, Russia, Brazil, and India. The Consumer EBIT margin is expected to increase to approximately 13% on a like-for-like basis as compared with the previous year. Growth in Consumer EBIT will be reduced by the substantial marketing investments in our Chinese hair care business.

The tesa business segment aims to generate above-market sales growth of approximately 5%. The EBIT margin will match the strong figure recorded in the previous year.

Interim Consolidated Financial Statements

Income Statement
(in € million)	July 1 – Sept. 30, 2007	July 1 – Sept. 30, 2008	Jan. 1 – Sept. 30, 2007	Jan. 1 – Sept. 30, 2008
Sales	1,317	1,456	4,167	4,547
Cost of goods sold	–442	–490	–1,362	–1,484
Gross profi t	875	966	2,805	3,063
Marketing and selling expenses	–621	–702	–1,963	–2,169
Research and development expenses	–30	–37	–91	–109
General and administrative expenses	–59	–73	–185	–215
Other operating expenses (net)	–7	2	–35	–22
Operating result (EBIT, excluding special factors)	158	156	531	548
Special factors due to the realignment of the Consumer Supply Chain	–6	–2	–64	13
Operating result (EBIT)	152	154	467	561
Other fi nancial result	7	9	21	29
Profi t before tax	159	163	488	590
Income taxes	–27	–53	–150	–188
Profi t after tax	132	110	338	402
Profi t attributable to equity holders	130	108	334	398
Profi t attributable to minority interests	2	2	4	4
Basic/diluted earnings per share (in €)	0.59	0.48	1.49	1.76

Balance Sheet

Assets (in € million)	Dec. 31, 2007	Sept. 30, 2007	Sept. 30, 2008
Intangible assets	350	26	362
Property, plant, and equipment	687	675	719
Other non-current assets	10	10	13
Deferred tax assets	34	39	41
Non-current assets	1,081	750	1,135
Inventories	598	590	691
Trade receivables	823	829	938
Income tax receivables	38	20	28
Other current assets	170	177	196
Securities	-	-	131
Cash and cash equivalents	1,117	1,369	1,191
Non-current assets and disposal groups held for sale	57	45	-
Current assets	2,803	3,030	3,175
	3,884	3,780	4,310

Equity and liabilities (in € million)	Dec. 31, 2007	Sept. 30, 2007	Sept. 30, 2008
Equity attributable to equity holders of Beiersdorf AG	2,061	1,964	2,298
Minority interests	9	8	8
Equity	2,070	1,972	2,306
Non-current provisions	407	412	377
Non-current fi nancial liabilities	1	7	-
Other non-current liabilities	58	10	65
Deferred tax liabilities	95	91	114
Non-current liabilities	561	520	556
Current provisions	505	614	667
Trade payables	529	467	513
Current fi nancial liabilities	82	59	98
Other current liabilities	137	148	170
Current liabilities	1,253	1,288	1,448
	3,884	3,780	4,310

Jan. 1 – Sept. 30,

Income Statement Balance Sheet Cash Flow Statement

Jan. 1 – Sept. 30,

Cash Flow Statement
(in € million)

(in € million)	2007	2008
Operating result (EBIT)	467	561
Income taxes paid	–174	–138
Depreciation and amortization	88	80
Change in non-current provisions (excluding interest)	–9	–23
Gain/loss on disposal of property, plant, and equipment, and intangible assets	–11	–49
Gross cash flow	361	431
Change in inventories	–42	–96
Change in trade receivables and other assets	–134	–159
Change in liabilities and current provisions	132	151
Net cash flow from operating activities	317	327
Investments	–74	–111
Proceeds from divestments	23	112
Payments for the purchase of securities	-	–131
Proceeds from interest, dividends, and other financing activities	50	36
Net cash flow from investing activities	–1	–94
Free cash flow	316	233
Proceeds from loans	59	98
Loan repayments	–62	–82
Interest and other financing expenses paid	–31	–19
Payment cash dividends Beiersdorf AG	–136	–159
Net cash flow from financing activities	–170	–162
Effect of exchange rate fluctuations on cash held	–7	3
Net change in cash and cash equivalents	139	74
Cash and cash equivalents as of Jan. 1	1,230	1,117
Cash and cash equivalents as of Sept. 30	1,369	1,191

Statement of Changes in Equity January – September 2008		Additional		Currency	Fair value
(in € million)	Share capital	paid-in capital	Retained earnings*	translation adjustment	measurement fi nancial instruments	Minority interests	Total
Jan. 1, 2008	252	47	1,879	–123	6	9	2,070
Financial instruments	-	-	-	-	–5	-	–5
Currency translation adjustment	-	-	-	12	-	-	12
Other changes	-	-	–9	-	-	–5	–14
Total income and expense recognized directly in equity	-	-	–9	12	–5	–5	–7
Profit after tax	-	-	398	-	-	4	402
Total earnings for the period	-	-	389	12	–5	–1	395
Dividend of Beiersdorf AG for previous year	-	-	–159	-	-	-	–159
Sept. 30, 2008	252	47	2,109	–111	1	8	2,306
January – September 2007
Jan. 1, 2007	252	47	1,587	–93	–12	9	1,790
Financial instruments	-	-	-	-	4	-	4
Currency translation adjustment	-	-	-	–19	-	-	–19
Other changes	-	-	–7	–7	14	–5	–5
Total income and expense recognized directly in equity	-	-	–7	–26	18	–5	–20
Profit after tax	-	-	334	-	-	4	338
Total earnings for the period	-	-	327	–26	18	–1	318
Dividend of Beiersdorf AG for previous year	-	-	–136	-	-	-	–136
Sept. 30, 2007	252	47	1,778	–119	6	8	1,972

* The cost of treasury shares amounting to €955 million has been deducted from retained earnings.

Statement of Recognized Income and Expense
--------------------------------------------	--	--	--	--	--	--

(in € million)	Jan. 1–Sept. 30, 2007	Jan. 1–Sept. 30, 2008
Net result from cash flow hedges	4	–5
Exchange differences	–19	12
Deferred taxes on measurement gains and losses recognized directly in equity	-	2
Other income and expense recognized directly in equity	–5	–16
Total income and expense recognized directly in equity	–20	–7
Profit after tax	338	402
Total recognized income and expense	318	395
Of which attributable to
– Equity holders of Beiersdorf AG	319	396
– Minority interests	–1	–1

Selected Explanatory Notes

Information on the Company and on the Group

The registered office of Beiersdorf AG is at Unnastrasse 48 in Hamburg (Germany) and the Company is registered with the commercial register of the Hamburg Local Court under the number HRB 1787. The ultimate parent of the Company is maxingvest ag (formerly: Tchibo Holding AG). The activities of Beiersdorf AG and its affiliates ("Beiersdorf Group") consist primarily of the manufacture and distribution of branded consumer goods in the areas of skin and beauty care, and of the manufacture and distribution of technical adhesive tapes.

Basis of Preparation

The interim consolidated financial statements for the period from January 1 to September 30, 2008, were prepared in accordance with IAS 34 "Interim Financial Reporting." The interim consolidated financial statements should be read in conjunction with the consolidated financial statements as of December 31, 2007.

Accounting Policies

The figures disclosed in this interim report were prepared in accordance with International Financial Reporting Standards (IFRSs). The same accounting policies were used in the interim consolidated financial statements as in the annual consolidated financial statements for 2007. The interim report was not audited or reviewed.

Related Party Disclosures

Please refer to the consolidated financial statements as of December 31, 2007, for related party disclosures. There were no significant changes as of September 30, 2008.

Corporate Governance

The declaration of compliance issued by the Supervisory Board and the Executive Board for fiscal year 2007 regarding the recommendations of the German Corporate Governance Code in accordance with § 161 Aktiengesetz (German Stock Corporation Act) was published at the end of December 2007 and is permanently available on our website at www.Beiersdorf.com.

Events After the Balance Sheet Date

Apart from the sale of the German affiliate BODE Chemie, described in the Group's Interim Management Report, no further significant events occurred after the balance sheet date that would have a material effect on the Beiersdorf Group's business developments.

Hamburg, November 2008 Beiersdorf AG The Executive Board

Financial Calendar

January 2009	Publication of Preliminary Group Results
March 3, 2009	Publication of Annual Report 2008, Annual Accounts Press Conference, Financial Analyst Meeting
April 30, 2009	Annual General Meeting
May 5, 2009	Interim Report January to March 2009
August 4, 2009	Interim Report January to June 2009
November 3, 2009	Interim Report January to September 2009, Financial Analyst Meeting

The Interim Report is also available in German and a digital version is available on the Internet at www.Beiersdorf.com/interim_report.

Commercial Register Hamburg HRB 1787

Published by:

Beiersdorf Aktiengesellschaft, Global Corporate Identity & Information, Unnastrasse 48, 20245 Hamburg, Germany Telephone: +49 40 4909-0, Fax: +49 40 4909-3434

Additional Information:

Corporate Media Relations: Telephone: +49 40 4909-3077, E-mail: Presse_PR@Beiersdorf.com Investor Relations: Telephone: +49 40 4909-5000, E-mail: Investor.Relations@Beiersdorf.com Beiersdorf on the Internet: www.Beiersdorf.com