Interim Report January – June 2006

Implementing Innovative Ideas

Beiersdorf – Passion for Skin and Beauty Care

02 Business Developments Overview
04 Segment Overview
05 News
06 Business Developments Group
07 Business Developments Business Segments
10 Balance Sheet Structure Group
11 Financial Position Group
11 Other Disclosures
12 Outlook 2006
13 The Beiersdorf Share
14 Financial Information Overview

Business Developments – Overview

Sales (in € million)

Profit after tax (in € million)

* excluding income from the sale of BSN medical and expenses for the realignment of the Consumer Supply Chain

Beiersdorf – Passion for Skin and Beauty Care

Our Cover Image: Implementing Innovative Ideas

We use innovative concepts and ideas to allow consumers to experience our brands. In April, for example, we opened the world's fi rst 'NIVEA Haus' in Hamburg (Germany). This offers quick and easy wellness treatments such as face and hair care, color consulting and massages featuring NIVEA's more than 500 products. The ongoing increase in the number of customers and visitors demonstrates the success of this innovative concept. For further information please visit www.Beiersdorf.com.

Successful first half of 2006

Sales growth of 6.2 % (adjusted for currency translation effects)
Operating result (EBIT)1) up 13.8 %
EBIT margin1) increases to 12.3 %
Profit after tax2) of €197 million

Outlook for 2006

Stronger sales growth than 2005
EBIT margin up year-on-year1)
Return on sales after tax will continue to climb2)

Beiersdorf at a Glance	Jan. 1 – June 30,	Jan. 1 – June 30,
in € million (unless otherwise stated)	2005	2006
Sales	2,433	2,609
Change in % (nominal)	2.9	7.2
Change in % (adjusted for currency translation effects)	3.0	6.2
Consumer	2,071	2,212
tesa	362	397
EBITDA	357	345
Operating result (EBIT)	282	263
Profi t after tax	180	518
Return on sales after tax in %	7.4	19.8
Earnings per share (in €)	0.783)	2.273)
Gross cash fl ow	257	234
Capital expenditure (incl. fi nancial assets)	61	49
Research and development expenses	52	54
Employees (as of June 30)	16,762	17,076

Signifi cant fi gures excluding special factors
Operating result (EBIT)	282	3211)
Profi t after tax	180	1972)
Return on sales after tax in %	7.4	7.62)
Earnings per share (in €)	0.783)	0.862)3)

1)excluding expenses for the realignment of the Consumer Supply Chain

2)excluding income from the sale of BSN medical and expenses for the realignment of the Consumer Supply Chain 3) calculated on the basis of the weighted average number of shares carrying dividend rights after adjustment for the stock split (226,818,984 bearer shares) – for further information please see page 11

Segment Overview

Business developments by business segment

Sales (in € million)	Apr. 1 – June 30,	2005 % of total		Apr. 1 – June 30, 2006 % of total	Jan. 1 – June 30,	2005 % of total		Jan. 1 – June 30, 2006 % of total	nominal	Change in % adj. for curr. trans. effects
Consumer	1,076	85.4	1,137	85.2	2,071	85.1	2,212	84.8	6.8	5.8
tesa	184	14.6	197	14.8	362	14.9	397	15.2	9.7	8.7
Total	1,260	100.0	1,334	100.0	2,433	100.0	2,609	100.0	7.2	6.2
EBITDA
(in € million)		% of sales		% of sales		% of sales		% of sales		Change in % nominal
Consumer	155	14.4	127	11.1	316	15.2	295	13.3		-6.7
tesa	20	10.8	24	12.5	41	11.5	50	12.7		20.8
Total	175	13.9	151	11.3	357	14.7	345	13.2		-3.5


Operating result (EBIT) (in € million)		% of sales		% of sales		% of sales		% of sales		Change in % nominal
Consumer	124	11.5	83	7.3	253	12.2	226	10.2		-10.8
Consumer (excluding special factors)* 124		11.5	141	12.4	253	12.2	284	12.8		12.2
tesa	14	7.4	18	9.2	29	8.1	37	9.4		28.0
Total	138	10.9	101	7.6	282	11.6	263	10.1		-6.7
Total (excluding special factors)* 138		10.9	159	11.9	282	11.6	321	12.3		13.8
Gross cash flow
(in € million)		% of sales		% of sales		% of sales		% of sales		Change in % nominal
Consumer	89	8.3	72	6.3	229	11.1	197	8.9		-14.2
tesa	10	5.2	21	10.9	28	7.7	37	9.3		33.0

Business developments by region

Sales (in € million)	Apr. 1 – June 30,	2005 % of total		Apr. 1 – June 30, 2006 % of total	Jan. 1 – June 30,	2005 % of total		Jan. 1 – June 30, 2006 % of total	nominal	Change in % adj. for curr. trans. effects
Europe	962	76.4	1,027	77.0	1,844	75.8	1,961	75.2	6.4	6.2
Americas	158	12.5	160	12.0	313	12.8	343	13.1	9.7	4.3
Africa/Asia/Australia	140	11.1	147	11.0	276	11.4	305	11.7	10.2	8.7
Total	1,260	100.0	1,334	100.0	2,433	100.0	2,609	100.0	7.2	6.2
Operating result (EBIT)

(in € million)		% of sales		% of sales		% of sales		% of sales	Change in % nominal
Europe	126	13.1	95	9.3	251	13.6	240	12.2	-4.5
Europe (excluding special factors)* 126		13.1	153	14.9	251	13.6	298	15.2	18.6
Americas	2	1.2	1	0.4	7	2.2	5	1.6	-20.4
Africa/Asia/Australia	10	6.9	5	3.4	24	8.7	18	5.8	-26.0
Total	138	10.9	101	7.6	282	11.6	263	10.1	-6.7
Total (excluding special factors)* 138		10.9	159	11.9	282	11.6	321	12.3	13.8

*excluding expenses for the realignment of the Consumer Supply Chain

Figures in percent are calculated based on thousands of euros.

News

This selection of news from the second quarter illustrates the consistent implementation of our "Passion for Success" Consumer Business Strategy, which is enabling us to continually grow our global market share.

APRIL

'NIVEA Haus' opens The world's fi rst 'NIVEA Haus' has opened in Hamburg's Jung fernstieg. This offers wellness treat-

ments such as face and hair care, color

MAY

International relaunch of NIVEA Hair Care

In May, Hamburg hosted the international press conference for the NIVEA Hair Care

relaunch. The 13 completely redesigned

JUNE

Realigning the Consumer Supply Chain

In the fi rst half of the year, Beiersdorf's employer and employee representatives in Germany, the Netherlands, Belgium and Sweden agreed on redundancy plans. The negotiations focused on the constructive development of socially responsible solutions for all affected employees. Discontinuation of plaster production in

consulting and massages featuring NIVEA products.

NIVEA's 30th birthday in Brazil

In April, the NIVEA brand celebrated its 30th birthday in Brazil. The South American country is one of the Group's focus regions, along with China, Russia and India.

NIVEA Hair Care lines offer optimized formulas and fashionable packaging. They are available in the shops since July.

Innovation in Anti-Age care

Anti-Age skin research has developed a new genera-

Eucerin's

tion of anti-wrinkle care products: Hyaluron fi ller plumps up the skin from underneath,

Hamburg (Germany), the closure of the production facilities in Almere (Netherlands) and Kungsbacka (Sweden) and the closure of the logistics centers in Almere and Brussels (Belgium) are part of the realignment of Beiersdorf's Consumer Supply Chain.

NIVEA body in the USA

In preparation for the relaunch of NIVEA body in the USA, the entire range was optimized and standardized at an interna-

la prairie Anti-Aging Complex

la prairie launched its Anti-Aging Complex cream in April. The new face care product helps prevent aging

and accelerates cell renewal.

leading to a visible reduction in even deep wrinkles. The products signifi cantly exceeded their sales targets in the month they were launched.

Expansion of production in India

Beiersdorf affi liate NIVEA India Pvt. Ltd. expanded production in its facility in Aurangabad in the state of Maharashtra: Now the NIVEA Creme, Soft and body subbrands will be produced directly in this market of the future.

tional level. The formulations, packaging, design and product names are all new. The relaunch is a strategic step for Beiersdorf on the US market.

"Passion for Success"

Please visit www.Beiersdorf.com for our Consumer Business Strategy along with full background information and additional current news.

Business Developments – Group

Sales growth of 6.2 % EBIT margin (excluding special factors) climbs to 12.3 % Profit after tax (excluding special factors) up significantly

In the fi rst half of 2006, the Group achieved sales growth of 6.2 % (adjusted for currency translation effects). The Consumer business segment contributed a sales increase of 5.8 % to this strong fi gure, while tesa's sales rose by 8.7 %. At current exchange rates, sales rose by 7.2 % to €2,609 million (previous year: €2,433 million).

Income Statement
(in € million)	Jan. 1 – June 30, 2005	Jan. 1 – June 30, 2006	Change in %
Sales	2,433	2,609	7.2
Cost of goods sold	-818	-864	5.7
Gross profi t	1,615	1,745	8.0
Marketing and selling expenses	-1,126	-1,217	8.1
Research and development expenses	-52	-54	2.6
General and administrative expenses	-114	-118	3.8
Other operating result	-41	-35	-16.4
Expenses for the realignment of the Consumer Supply Chain	-	-58	-
Operating result (EBIT)	282	263	-6.7
Income from the sale of BSN medical	-	371	-
Other fi nancial result	7	-2	-
Profi t before tax	289	632	118.8
Taxes on income	-109	-114	4.7
Profi t after tax	180	518	187.8
Basic/diluted earnings per share (in €)*	0.78	2.27	191.5

* calculated on the basis of the weighted average number of shares carrying dividend rights after adjustment for the stock split (226,818,984 bearer shares) – for further information please see page 11

The Group's operating result (EBIT) amounted to €263 million. This fi gure includes €58 million in expenses for the realignment of the Consumer Supply Chain, which relate to the measures announced to date. The expenses primarily concern provisions for personnel expenses and write-downs of property, plant and equipment. Excluding these special factors, the operating result amounted to €321 million (previous year: €282 million); the corresponding EBIT margin was 12.3 % (previous year: 11.6 %).

Income of €371 million (after tax: €361 million) was generated by the sale of Beiersdorf's share in BSN medical in February 2006. The other fi nancial result was €-2 million (previous year: €+7 million).

Profi t after tax amounted to €518 million, or €197 million excluding special factors (previous year: €180 million); the corresponding return on sales after tax was 7.6 % (previous year: 7.4 %).

Earnings per share for the Company's 226,818,984 shares (following the stock split, see page 11) rose to €2.27 (previous year: €0.78). The basic and diluted earnings per share were the same. Earnings per share excluding special factors rose to €0.86.

Business Developments – Business Segments

Consumer business segment up 5.8 % EBIT margin climbs to 12.8 %

Consumer
(Jan. – June) (in € million)	Europe	Americas	Africa/ Asia/ Australia	Total
Sales 2006	1,665	298	249	2,212
Change (adjusted for currency translation effects)	5.9 %	3.3 %	8.3 %	5.8 %
Change (nominal)	6.1 %	8.6 %	9.5 %	6.8 %
EBIT 2006*	268	3	13	284
EBIT margin 2006*	16.1 %	1.0 %	5.0 %	12.8 %
EBIT 2005	227	7	19	253
EBIT margin 2005	14.5 %	2.3 %	8.3 %	12.2 %

*excluding expenses for the realignment of the Consumer Supply Chain (€58 million exclusively in Europe)

Sales rose by 5.8 % (adjusted for currency translation effects). At current exchange rates, the Consumer business segment achieved sales growth of 6.8 % to €2,212 million (previous year: €2,071 million). Strong double-digit growth was seen in particular in our focus regions of Eastern Europe and Latin America. NIVEA sales rose by 7.7 % overall. This positive development was driven primarily by NIVEA BEAUTÉ, NIVEA FOR MEN, NIVEA SUN and NIVEA Hair Care Styling. Eucerin and la prairie also generated aboveaverage growth rates.

At €284 million (previous year: €253 million), the operating result (EBIT) excluding special factors increased faster than sales. This EBIT growth was generated primarily in Europe. The EBIT margin rose to 12.8 % (previous year: 12.2 %).

Consumer Sales in Europe (Jan. – June)
(in € million)	Germany	Western Europe (excluding Germany)	Eastern Europe	Total
Sales 2006	512	944	209	1,665
Change (adjusted for currency translation effects)	-0.1 %	7.0 %	18.1 %	5.9 %
Change (nominal)	-0.1 %	6.7 %	21.2 %	6.1 %

In Europe, sales in the Consumer business segment grew by 5.9 % in comparison to the previous year, adjusted for currency translation effects. At current exchange rates, sales rose by 6.1 % to €1,665 million (previous year: €1,570 million).

Sales to customers in Germany were slightly below the previous year. NIVEA BEAUTÉ and NIVEA FOR MEN performed extremely well. Our Eucerin brand achieved excellent growth in the pharmacy business. Exports from Germany to customers in countries where Beiersdorf does not have affi liates rose by 7.1 %.

Western Europe achieved excellent sales growth of +7.0 % (adjusted for currency translation effects). The Nordic countries (+15.8 %), Greece (+11.0 %) and France (+9.3 %) made particularly strong contributions to this. However, almost all other major Western European markets also generated clear growth.

In Eastern Europe, our strong growth continued with a rise of 18.1 %. We achieved clear double-digit growth rates in our major markets of Poland and Russia, as well as in Hungary and the Baltic states. In Russia, NIVEA FOR MEN and NIVEA deodorant performed particularly well. In Poland, sales of NIVEA FOR MEN and NIVEA VISAGE, as well as the introduction of NIVEA Hair Care Styling, contributed signifi cantly to growth.

The Consumer business segment's EBIT in Europe (excluding expenses for the realignment of the Consumer Supply Chain) rose faster than sales to €268 million (previous year: €227 million). The corresponding EBIT margin rose to 16.1 % (previous year: 14.5 %).

Consumer Sales in the Americas (Jan. – June)
(in € million)	North America	Latin America	Total
Sales 2006	165	133	298
Change (adjusted for currency translation effects)	-7.2 %	20.5 %	3.3 %
Change (nominal)	-3.4 %	28.5 %	8.6 %

In the Americas, sales increased by 3.3 % (adjusted for currency translation effects). At current exchange rates, sales amounted to €298 million, up 8.6 % on the previous year (€274 million).

In North America sales (adjusted for currency translation effects) were down 7.2 %. la prairie and NIVEA FOR MEN achieved sound growth. This was offset by the planned streamlining of the product range on the US market and the reduction of retail stocks in preparation for the key relaunch of NIVEA body. With strong additional sustained marketing measures we aim to match last years' sales fi gures by the end of the year.

Sales in Latin America rose by 20.5 % (adjusted for currency translation effects). NIVEA Bath Care, NIVEA body and NIVEA deodorant performed particularly well in this focus region. In addition to the key markets of Mexico (+15.3 %) and Brazil (+24.9 %), Colombia (+56.3 %) and Venezuela (+39.9 %) also recorded strong growth rates.

EBIT for the Consumer business segment in this region amounted to €3 million (previous year: €7 million). The EBIT margin was 1.0 % (previous year: 2.3 %).

Consumer Sales in Africa/Asia/Australia
(Jan. – June)	Africa/Asia/
(in € million)	Australia
Sales 2006	249
Change (adjusted for currency translation effects)	8.3 %
Change (nominal)	9.5 %

Africa/Asia/Australia achieved growth of 8.3 % (adjusted for currency translation effects). At current exchange rates, sales amounted to €249 million, up 9.5 % on the previous year (€227 million). Sales growth in China again exceeded 40 %. The primary drivers for this were NIVEA VISAGE and NIVEA FOR MEN. Double-digit growth was also achieved in Thailand, Korea and South Africa. In Thailand, NIVEA SUN and NIVEA deodorant extended their market lead. In Japan, sales were down. Growth in NIVEA FOR MEN was unable to compensate for the decline in sales in the NIVEA body and NIVEA SUN segments. 8x4 remains the market leader in deodorants and was able to lift sales slightly in a declining market.

EBIT for the Consumer business segment in this region amounted to €13 million (previous year: €19 million). The EBIT margin was 5.0 % (previous year: 8.3 %).

tesa business segment: sales up 8.7 % EBIT margin climbs to 9.4 %

tesa
(Jan. – June)	Europe	Americas	Africa/ Asia/	Total
(in € million)			Australia
Sales 2006	296	45	56	397
Change (adjusted for
currency translation effects)	8.0 %	10.8 %	10.5 %	8.7 %
Change (nominal)	8.0 %	16.6 %	13.3 %	9.7 %
EBIT 2006	30	2	5	37
EBIT margin 2006	10.0 %	5.8 %	9.4 %	9.4 %
EBIT 2005	24	-	5	29
EBIT margin 2005	8.7 %	1.0 %	10.3 %	8.1 %

Adjusted for currency translation effects, tesa sales were up signifi cantly on the previous year at +8.7 %. At current exchange rates, tesa achieved sales of €397 million, an increase of 9.7 % in comparison to the previous year.

This positive trend was achieved in both tesa's industrial and consumer businesses. Almost all regions recorded substantial year-on-year increases in the consumer business.

tesa's industrial business continued its extremely positive sales trend in the second quarter, with solutions for the automotive business making a particularly strong contribution. Specialty products for the paper and printing industry and the electrical/electronics industry also generated double-digit growth rates.

All regions continued their positive development at the level of the tesa business segment as a whole. Eastern Europe (+21.7 % adjusted for currency translation effects) and North America (+17.1 % adjusted for currency translation effects) recorded particularly strong growth.

EBIT rose to €37 million (previous year: €29 million), while the EBIT margin increased to 9.4 % (previous year: 8.1 %).

Balance Sheet Structure – Group

Balance Sheet
Assets (in € million)	Dec. 31, 2005	June 30, 2005	June 30, 2006
Non-current assets	962	1,073	904
Inventories	536	591	560
Other current assets	926	1,002	1,006
Cash and cash equivalents	483	285	938
	2,907	2,951	3,408

Equity and Liabilities (in € million)	Dec. 31, 2005	June 30, 2005	June 30, 2006
Equity*	1,293	1,128	1,640
Non-current liabilities	601	639	599
Current liabilities	1,013	1,184	1,169

* before appropriation of net retained profi ts

Non-current assets were signifi cantly below comparison values. As part of the realignment of our Consumer Supply Chain, investments were reduced and impairment write-downs on property, plant and equipment of €19 million were made. Inventories rose for seasonal reasons, but were nevertheless lower than previous year as a consequence of optimization projects. Other current assets also rose for seasonal reasons compared to the beginning of the year and reached the level of the previous year. Cash and cash equivalents increased signifi cantly to €938 million due to the sale of BSN medical. Non-current liabilities changed only insubstantially as against the year-end. The rise in current liabilities is largely attributable to higher pro visions in connection with the realignment of the Consumer Supply Chain (€+36 million), for marketing and selling expenses, as well as for taxes on income.

Dec. 31, 2005 38 %44 % 21 % 35 %	Financing Structure


June 30, 2005 38 % 22 % 40 %
June 30, 2006 48 % 18 % 34 %

Equity Non-current liabilities Current liabilities

Financial Position – Group

Cash Flow Statement (in € million)	Jan. 1 – June 30, 2005	Jan. 1 – June 30, 2006
Cash and cash equivalents as of Jan. 1	290	483
Gross cash fl ow	257	234
Change in net current assets	-108	-15
Net cash fl ow from operating activities	149	219
Net cash fl ow from investing activities	-35	409
Free cash fl ow	114	628
Net cash fl ow from fi nancing activities	-133	-165
Exchange rate and other changes	14	-8
Net change in cash and cash equivalents	-5	455
Cash and cash equivalents as of June 30	285	938

Gross cash fl ow amounted to €234 million and was below the fi gure for the comparative period due to the expenses for the realignment of the Consumer Supply Chain. Net current assets increased by €15 million, €93 million less than in the previous year. Net cash fl ow from operating activities reached €219 million, €70 million more than previous year. The net cash fl ow from investing activities increased cash and cash equivalents by €409 million, which includes a positive effect from the sale of our investment in BSN medical of €433 million. Free cash fl ow reached €628 million (€195 million without the infl ow from the sale of BSN medical). The net cash outfl ow from fi nancing activites amount ed to €165 million, mainly due to the dividend payment and the reduction of fi nancial liabilities. Overall, cash and cash equivalents rose to €938 million.

Other Disclosures

Capital expenditure

Beiersdorf invested €44 million (previous year: €59 million) in property, plant and equipment and intangible assets in the reporting period. €34 million of this amount is attributable to the Consumer business segment (previous year: €42 million) and €10 million to tesa (previous year: €17 million).

Employees

The number of employees grew by 307 to 17,076 compared to the fi gure on December 31, 2005. As of June 30, 13,400 employees worked in the Consumer business segment and 3,676 at tesa.

Stock split

On July 17, 2006 Beiersdorf AG executed a stock split, in order to increase the liquidity of Beiersdorf's shares. This stock split was approved at the ordinary Annual General Meeting on May 17, 2006 and refl ects the signifi cant increase of the market price of our share. After a capital increase of €36.96 million from re tained earnings from €215.04 million to €252 million, the stock split was implemented at a ratio of 3-for-1. After the increase the capital stock of Beiersdorf is divided into 252 million bearer shares with a pro-rata value of €1.00 each. In accordance with IAS 33, our earnings per share for the previous year were also adjusted to refl ect the new number of shares.

Accounting Policies

The fi gures disclosed in this Interim Report were prepared in accordance with International Financial Reporting Standards (IFRS). The same accounting policies were used in the Interim Report as in the Annual Financial Statements for 2005.

The Interim Report was not reviewed by an auditor.

Corporate Governance

The declaration of compliance issued by the Supervisory Board and the Executive Board for fi scal year 2005 regarding the recommendations of the German Corporate Governance Code in accordance with § 161 of the Aktiengesetz (German Stock Corporation Act) was published at the end of December 2005 and is permanently available on our website at www.Beiersdorf.com.

Outlook 2006

Expected Macroeconomic Developments

We do not anticipate any major changes in the macroeconomic situation in 2006 over the previous year. Our assessment continues to be based on current growth rates. While we expect growth in Western Europe and North America to be relatively moderate, we are forecasting substantially stronger economic development in Eastern Europe, Latin America and Asia.

The global cosmetics market will continue its long-term growth at 3 %. Despite some positive developments, we do not anticipate sustained improvement in the major markets of Western Europe. We expect the cosmetics market in Eastern Europe, Latin America and Asia to perform well. tesa's markets are anticipated to pick up increasingly, particularly in the automotive segment.

The robust growth in Asia is expected to generate strong demand for raw materials and energy. We therefore expect no relief in prices for raw materials.

Expected Business Development

The Consumer business segment is planning higher sales growth in 2006 than in 2005 on a like-for-like basis, excluding currency translation effects. The EBIT margin (before special factors) is expected to increase further. tesa anticipates that sales growth will outperform the market and be up on the previous year. The EBIT margin will continue to improve.

For the Group as a whole, we anticipate sales growth to be stronger in 2006 than in 2005, and therefore to exceed market growth. The EBIT margin (before special factors) is expected to increase further. This will also have a positive effect on our profi t after tax and return on sales after tax.

The realignment of the Consumer Supply Chain will result in aggregate additional costs of around €220 million (before tax) over the next three years. Approximately €70 million of this amount will be incurred in 2006 for the measures announced in February.

Profi t after tax will include income of €361 million (after tax) from the sale of BSN medical.

The Beiersdorf Share

Following a strong start to the quarter, a sudden cool-off occurred on the international markets towards the middle of May, the severity of which surprised most observers. Key resistance levels were broken during the fall, although there is no consensus as to why this should have happened. The US economy and uncertainty as to its further development are cited as one potential reason. However, the equities markets did not always seem to refl ect macroeconomic fundamentals: most markets in Europe showed signs of recovery and Asia/Japan were in good condition. Like other indices, the DAX fell sharply in May, losing more than 500 points in only a few days and continuing to decline even after this rapid slump eased. Starting in mid-June, a slight recovery could be observed, with the leading German indices closing the quarter clearly above 5,600 points.

In the HPC (Household and Personal Care) sector to which Beiersdorf belongs, share prices also slumped in line with the general trend in May, albeit somewhat less dramatically.

Beiersdorf's share largely traded in line with the market in April and May, before breaking free in mid-June and clearly outperforming the indices thereafter. According to investors, the increased interest in the Company was primarily due to its new Consumer Business Strategy and the steps being taken to implement this. The CEO and CFO reported at an investor conference and roadshow in June in Paris on the measures underway to consolidate and expand the key areas of our "Passion for Success" strategy. After a volatile last few days to the quarter, the Beiersdorf share closed at €117.81 on June 30 (before stock split, see page 11).

Beiersdorf share price performance April – June 2006

Financial Information – Overview

Income Statement
(in € million)	2005	Apr. 1 - June 30, Apr. 1 - June 30, Jan. 1 – June 30, Jan. 1 – June 30, 2006	2005	2006	Change in %
Sales	1,260	1,334	2,433	2,609	7.2
Cost of goods sold	-425	-443	-818	-864	5.7
Gross profi t	835	891	1,615	1,745	8.0
Marketing and selling expenses	-583	-627	-1,126	-1,217	8.1
Research and development expenses	-28	-27	-52	-54	2.6
General and administrative expenses	-58	-58	-114	-118	3.8
Other operating result	-28	-20	-41	-35	-16.4
Expenses for the realignment of the Consumer Supply Chain	-	-58	-	-58	-
Operating result (EBIT)	138	101	282	263	-6.7
Income from the sale of BSN medical	-	-	-	371	-
Other fi nancial result	4	-2	7	-2	-
Profi t before tax	142	99	289	632	118.8
Taxes on income	-54	-43	-109	-114	4.7
Profi t after tax	88	56	180	518	187.8
Minority interests	-1	-1	-3	-2	-30.9
Net profi t	87	55	177	516	191.5
Basic/diluted earnings per share (in €)*	-	-	0.78	2.27	191.5

Balance Sheet
Assets (in € million)	Dec. 31, 2005	June 30, 2005	June 30, 2006
Intangible assets	34	44	29
Property, plant and equipment	882	898	830
Non-current fi nancial assets	5	100	9
Other non-current assets	8	1	8
Deferred tax assets	33	30	28
Non-current assets	962	1,073	904
Inventories	536	591	560
Trade receivables	732	860	845
Other current assets	194	142	161
Cash and cash equivalents	483	285	938
Current assets	1,945	1,878	2,504
	2,907	2,951	3,408


Equity and Liabilities (in € million)	Dec. 31, 2005	June 30, 2005	June 30, 2006
Shareholders' equity (Beiersdorf AG) excl. minority interests	1,280	1,118	1,633
Minority interests	13	10	7
Equity*	1,293	1,128	1,640
Non-current provisions	430	490	436
Non-current fi nancial liabilities	29	15	24
Other non-current liabilities	8	2	6
Deferred tax liabilities	134	132	133
Non-current liabilities	601	639	599
Current provisions	407	439	542
Trade payables	369	355	397
Current fi nancial liabilities	74	179	63
Other current liabilities	163	211	167
Current liabilities	1,013	1,184	1,169

*before appropriation of net retained profi ts

Cash Flow Statement	Jan. 1 – June 30,	Jan. 1 – June 30,
(in € million)	2005	2006
Cash and cash equivalents as of Jan. 1	290	483
Operating result (EBIT)	282	263
Income taxes paid	-96	-114
Depreciation and amortization	75	82
Change in non-current provisions (excluding interest)	-4	3
Gross cash fl ow	257	234
Change in inventories	-33	-24
Change in trade receivables and other assets	-199	-153
Change in liabilities and current provisions	124	162
Net cash fl ow from operating activities	149	219
Investments	-61	-49
Proceeds from divestments	4	9
Proceeds from the sale of BSN medical	-	433
Proceeds from interest, dividends and other fi nancing activities	22	16
Net cash fl ow from investing activities	-35	409
Free cash fl ow	114	628
Change in fi nancial liabilities	10	-16
Interest and other fi nancing expenses paid	-22	-20
Cash dividends paid (Beiersdorf AG)	-121	-129
Net cash fl ow from fi nancing activities	-133	-165
Effect of exchange rate and other changes on cash held	14	-8
Net change in cash and cash equivalents	-5	455
Cash and cash equivalents as of June 30	285	938

Statement of Changes in Equity
(in € million)	Jan. 1 – June 30, 2005	Jan. 1 – June 30, 2006
Equity as of Jan. 1	1,033	1,293
Profi t after tax	180	518
Dividend of Beiersdorf AG for previous year	-121	-129
Other changes	-12	-10
Currency translation adjustments	48	-32
Equity as of June 30	1,128	1,640

Financial Calendar

Interim Report January to September 2006 Financial Analyst Meeting	November 7, 2006
Publication of Preliminary Group Results	January 2007
Publication of Annual Report 2006 Annual Accounts Press Conference Financial Analyst Meeting	February/March 2007
Annual General Meeting	April 26, 2007
Interim Report January to March 2007	May 2007
Interim Report January to June 2007	August 2007
Interim Report January to September 2007 Financial Analyst Meeting	November 2007

Contact Information

Published by: Beiersdorf Aktiengesellschaft, Corporate Identity/Information, Unnastrasse 48, 20245 Hamburg, Germany Telephone: +49 40 4909-0, Telefax: +49 40 4909-3434 Additional information: Press & PR: Telephone: +49 40 4909-2332, E-mail: [email protected] Investor Relations: Telephone: +49 40 4909-5000, E-mail: [email protected] Beiersdorf on the Internet: www.Beiersdorf.com

A digital version of this Interim Report is available on the Internet at www.Beiersdorf.com/interim_report Printed copies may also be ordered from: Beiersdorf AG, Investor Relations, Unnastrasse 48, 20245 Hamburg, Germany

Commercial Register Hamburg HRB 1787 Executive Board: Thomas-B. Quaas (Chairman), Peter Kleinschmidt, Pieter Nota, Markus Pinger, Rolf-Dieter Schwalb Supervisory Board Chairman: Dieter Ammer

W06/1771/85E

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Beiersdorf AG

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