Folie 1 - Hornbach Holding AG

Transcription

HORNBACH-Baumarkt-AG Group
Credit Investor Presentation February 2013
1
Agenda
HORNBACH at a glance
Business drivers & strategy for HORNBACH
Financial overview
Key credit highlights
Appendix
2

German-based Do-it-yourself (DIY) retailer with large-format megastores and a proven business model

Founded in 1877 as slate roof contractor, HORNBACH opened first DIY store in 1968 and introduced megastore format
(>10,000 sqm) in the 1980s

Since 1993 listed on the Frankfurt Stock Exchange with strong commitment and support of the founder family HORNBACH

Today 138 DIY megastores in 9 countries with an aggregated sales area of approx. 1,600,000 sqm

Successful organic growth with long-term track record and sustainable earnings development

Highest average store size in Europe and highest sales per sqm of all German DIY retailers

Stable Ba2 rating by Moody’s since 2004 with outlook improved to positive in 2010; in 2011 upgraded by S&P to BB+ stable
3
HORNBACH’s shareholder & group structure
Ordinary shares
75%
Preference shares
HORNBACH Familien
Treuhand GmbH
75%
Kingfisher plc
voting rights
25% (+2 shares)
(-2 shares)
37.5% (-2 shares)
Free Float
Kingfisher plc
12.5% (+2 shares)
8.7%
41.3%
Neustadt/Weinstraße
76.4%
100%
HORNBACH
Immobilien AG
100%
HORNBACH
Baustoff Union GmbH
Bornheim
HORNBACH-Baumarkt-AG
Free Float
18.4%
Germany (92 stores)
100%
Neustadt/Weinstraße
Kingfisher plc
5.2%
HORNBACH International GmbH
International (46 stores)
4
Steady European expansion…
138 DIY stores in 9 countries
Sales area: 1.60 mn sqm
Store size: Ø 11,600 sqm
Germany
92 stores
989,700 sqm
as of end-December 2012
Austria
11 stores
140,300 sqm
Romania
5 stores
77,500 sqm
Czech Republic
8 stores
110,000 sqm
Slovakia
2 stores
31,700 sqm
Luxembourg
1 store
12,100 sqm
Sweden
4 stores
59,200 sqm
Netherlands
9 stores
100,700 sqm
Switzerland
6 stores
78,600 sqm
5
…with success
Steady positive trend in sales growth
Sales breakdown Germany vs. International
in €m
3,500
3,000
2,500
2,000
1,500
1,000
500
0
32%
CAGR 7%
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
42%
Germany
Germany
FY 2003/2004
FY 2011/2012
Stable EBITDA over the long-term
EBITDA breakdown Germany vs. International
in €m
200
150
100
CAGR 7%
50
Germany
32%
Germany
63%
0
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
FY 2003/2004
FY 2011/2012
6
HORNBACH‘s outperformance of the German DIY sector
Net sales 2011 (Europe)
Net sales 2011 (Germany)
4,000
14,000
12,45512,186
3,132
12,000
3,000
€m
€m
10,000
8,000
5,726
6,000
4,059
4,000
2,000
2,269
2,078
2,060
2,000
1,729
1,083
3,183 3,001 2,716
2,250 2,060 2,007
1,000
0
0
r
eo
he
if s
Ad
ng upe
Ki
ro
G
u
p
e
s
h
o
ba
au rou
om lag
ac
sk
e
h
b
o
e
o
G
u
T
K
rn
ag
ric
Ba ker
/H
B
Ho
s
it
r.
u
M
ak
Ze
r
P
BI
O
I
OB
Pr
400
375
350
325
300
275
250
225
200
175
150
125
100
1997
1999
2001
HBM Germany
Source: BHB, Dähne, HORNBACH
2003
HBM Group
2005
t
ak
p
rou
G
r
ike
us
au
ha
eb
u
g
a
Ba
S/H
U
ZE
H
el a
AC
/H
B
s
u
RN
ob
HO
Gl
om
To
Market share in % of DIY store sales in Germany
Sales comparison index: 1995 = 100%
1995
2,289
2007
2009
2011
6.7
4.9
5.3
5.6
7.1
7.6 7.7
8.8
8.5 8.7
8.3
8.1
9.2
6.1
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
DIY-Sector (Ger)
7
Agenda
Financial overview
Appendix
8
Our strategy for the DIY world
HORNBACH is the top address for DIY projects
Every-daylow-price
Superior
product offering
Project-oriented
services
Megastore network
& multi-channel retailing
Sophisticated
logistics & IT
Continuing
internationalisation
Outperforming the DIY market &
delivering a unique customer experience
9
Our customers agree with us – not only in Germany
Development of overall customer satisfaction according to “Kundenmonitor Deutschland”
(companies with at least 100 interviewees)
2.2
Hornbach
2.3
Globus
2.4
OBI
2.45
2.5
2.6
2.48 2.47
2.48
2.49
2.47
2.46
2.48
Bauhaus
Max Bahr
2.54
Praktiker
2.7
Branche
2.8
2004
2005
2006
2007
2008
2009
2010
2011
2012
Since 2005, HORNBACH has been ranked best every year in the Top 6 DIY players in Germany
HORNBACH has regularly been awarded the top marks in the main retailing categories related to price,
product range and services
10
Why do customers prefer HORNBACH?
Every-daylow-price
Commitment to best prices
Permanent “Every-day-low-price”- strategy
No temporary discount campaigns
Broadest and deepest product offering in German DIY retailing
Approximately 50,000 SKUs in stock
Product offering covers both “hard” and “soft” DIY ranges
Large store size facilitates optimal and convenient product display and merchandizing
Superior
product offering

Project-oriented
services
Partner for project customers & professionals
HORNBACH offers a wide range of home hardware and decoration services such as:
– Tool rental
– Kitchen planning and bathroom renovation
– Repairs/maintenance
– Paint mixing
– Installation service
– Wood cutting
– Trailer and transporter rental
– Financing
Top quality specialist advice due to well-trained and motivated employees
Strong customer loyalty
11
Most efficient megastores
average store size (in sqm)
14,000
12,000
OBI
megastore
10,000
Praktiker Group
Bauhaus
8,000
HORNBACH
Toom/Marktkauf
6,000
Globus/Hela
4,000
BayWa
Zeus/Hagebau
2,000
Eurobaustoff
EMV-Profi
0
750
1,000
1,250
1,500
1,750
2,000
Net sales / sqm
Source: Dähne, HORNBACH; all data based on 2011 figures
Bubble size = total net sales (Europe)
12
Competitive advantages
of the warehouse-style store format
HORNBACH has gained an unparalleled expertise and track record in operating large-format DIY stores
over the past 20 years
Economies
of scale
Customer
orientation

It is more cost-effective to operate a 10,000 sqm store than two stores with 5,000 sqm each, as
long as sales productivity does not decline with increasing selling space

HORNBACH’s sales per sqm (sales density) are the highest among Top German DIY operators

Large-format DIY stores have the requisite selling and inventory space to offer the broadest and
deepest product range

Best merchandising concept and maximum shopping convenience due to easy navigation,
convenient store layout and instant availability of products

Consistent brand image with unique advertising campaigns
13
Our megastores provide
outstanding shopping experience
Key elements of success
Store portfolio with high megastore ratio

Prime locations

Focus on big catchment areas

Large store format

Homogeneous store network

Multi-channel retailing
Webshop started on Dec 1, 2010
%Share of total sqm
100%
85%
75%
50%
25%
1%
6%
8%
0%
3,920-4,999 sqm 5,000-7,499 sqm 7,500-9,999 sqm
> 10,000 sqm
Store size category
14
Elaborated supply chain management
ensures Europe-wide logistics
Sophisticated merchandise management in
conjunction with our homogeneous store network
North I
Lehrte/Hannover
Our logistics system combines direct supplies to
stores and indirect deliveries via 4 logistics centers
North II
Soltau
South-east
Vilshofen
Enhanced import possibilities
Group-wide integrated IT and merchandise systems
South-west
Essingen
15
Growth drivers
Cocooning
New target groups
(retreat-to-home lifestyle trend)
(„women-at-work“, Do-it-for-me, seniors)
Increasing need
for renovation
Multi-channel retailing
(80% of houses/flats > 20 years)
Sustainability and
energy efficiency
Strong private labels
• Insulation of facades
• Replacement of outdated boilers
• Use of rainwater
• FSC timber products
International expansion
16
Agenda
Financial overview
Appendix
17
Financial Overview
Sales & earnings development
in €m
in €m
7.4%
3,500
3,000
2,500
Cash flow
6.3%
6.1%
6.1%
5.7%
2,000
1,500
1,000
200
160
150
120
100
80
50
40
0
0
500
0
2007/08
2008/09
Net sales (LHS)
2009/10
EBITDA-Margin
2010/11
2007/08
2011/12
2008/09
Investments (Capex)
EBITDA (RHS)
2009/10
Dividends
2010/11
2011/12
Cash flow from operating activities
Balance sheet
Key ratios
in €m
8x
6x
2.5x
1,800
2.0x
1,500
1.5x
4x
1.0x
2x
0x
2007/08
2008/09
Interest Coverage (LHS)
2009/10
2010/11
2011/2012
Net debt/EBITDA (RHS)
1,200
900
600
0.5x
300
0.0x
0
2007/08
2008/09
Total equity
2009/10
Net Debt
2010/11
2011/12
Total Assets
18
Nine months financial performance
Sales in €m
2011/12
2012/13
1,000
800
864 865
804 817
600
742 746
2,000
1,500
400
1,000
200
500
0
0
Q1
Q2
Like-for-like Group sales to reach previous year‘s
level (-0,8%)
2,500
Q3
2,410
2,428
Germany +0.7%
Other Europe -2.6%
Gross margin stays on a high level
2011/12 9M
2012/13 9M
Working capital increases in line with sales
Higher store operating costs as % of net sales
Slightly increased pre-opening expenses
due to accelerated expansion scheme
EBITDA in €m
100
80
60
2011/12
2012/13
80.5
75.9
78.6 77.6
180
150
120
90
40
174.9
60
35.8
20
194.9
Higher administrative overhead costs
due to ongoing innovation projects
(e. g. e-business, customer service center)
21.4
0
Earnings just under record level of FY 2011/2012
30
0
Q1
Q2
Q3
2011/12 9M
2012/13 9M
Based on International Financial Reporting Standards (IFRS), rounding differences possible
19
Balance sheet development confirms
conservative financial policy
ASSETS in €m
1,628
1,723
Total
537
687
Liquid funds
Inventories,
accounts
receivable and
other assets
Non-current
assets
February 29, 2012
Rounding differences possible
1,723
1,628
Total
26.1%
24.8%
404
EQUITY and LIABILITIES in €m
450
541
732
November 30, 2012
427
440
856
Current liabilities
365
Non-current
liabilities
472
Shareholders‘
equity
792
49.7%
48.6%
November 30, 2012
February 29, 2012
20
Conservative and prudent financial policy (I)
Key messages
Liquidity
management
Centralised group
funding and cash
management
Risk
management
Conservative and prudent financial strategy
Employing a broad-diversified range of funding instruments with access to equity
and debt capital markets Æ ensuring highest flexibility
97% of total debt is long-term financed
of which more than 90% is unsecured
of which 84% account for HORNBACH-Baumarkt-AG
High liquidity cushion (cash + free credit lines) as of Nov 30, 2012: €749m
Guideline: free liquidity covers short term debt and capex of 1-2 financial years
Committed credit lines with only back-up character

Centralised group funding
Cash pooling in HORNBACH-Baumarkt-AG subgroup
Uniform presence in the financial markets
Rolling group financial planning on a monthly basis with a budget horizon of 12months
Financial derivatives only used for hedging purposes, not for speculation
Interest rate risks hedged by swaps or outright fixed-rate interest payments
Investments in foreign currencies are financed locally to ensure natural hedging
21
Conservative and prudent financial policy (II)
Capex
policy
Focus on organic growth
Planned capex substantially covered by operating cash flows
Dividend
policy
Consistent and continuous dividend policy
Total dividend payment amounting to €15.9m in FY 2011/2012
Real estate
Rating
Overriding strategy to remain at least 50% of the retail sales areas in the hand of
HORNBACH Group (as of November 30, 2012: 54%)
47% of the group-owned sales areas owned by HORNBACH-Baumarkt-AG subgroup
with a significant volume of hidden reserves
Extensive real estate portfolio with first class development specialists
Commitment to maintain a public rating
S&P’s: BB+ / stable outlook; upgrade by one notch in 07/2011
Moody’s: Ba2 since 11/2004; outlook improved to positive in 10/2011
22
Agenda
Financial overview
Appendix
23

One of the leading German DIY retailers with strong brand recognition

Proven business model with superior value proposition to customers

International success story leading to increasing diversification

Above sector growth

Highly efficient operations, merchandising and logistics systems

Experienced management team with strong track record

Supportive family background

Conservative financial profile

Stable public credit ratings
24
Indicative terms & conditions
Issuer
HORNBACH-Baumarkt-AG, Bornheim/ Germany
Guarantor
HORNBACH International GmbH, Bornheim/ Germany
Ratings
Ba2 positive / BB+ stable
Status
Senior, unsecured
Use of proceeds
General corporate purposes including refinancing
Size
EUR sub-benchmark
Maturity
7 years
Coupon
Fixed, annual
Covenants
Pari passu, negative pledge, cross default, change of control
Documentation
Standalone documentation with a minimum denomination of EUR 1,000
Listing / Governing Law
Luxembourg Stock Exchange Regulated Market / German law
Passporting
Austria, Germany
Bookrunners
Commerzbank, HSBC, Unicredit
25
Agenda
Financial overview
Appendix
26
Experienced board of management
HORNBACH HOLDING AG
Responsibility
Age
Years at Years in
HORNBACH retailing
Albrecht Hornbach
Chairman of the Board
DIY stores (HORNBACH-Baumarkt-AG), builder‘s merchants (HORNBACH
Baustoff Union GmbH), real estate (HORNBACH Immobilien AG)
58
22
22
Roland Pelka
Chief Financial Officer
Finance, accounting and tax, controlling, risk management,
loss prevention, IT, IR
55
16
16
HORNBACH-Baumarkt-AG
Steffen Hornbach
Chairman of the Board
Strategic development, construction and technical procurement,
new distribution channels, after sales service
54
25
25
Roland Pelka
Chief Financial Officer
Deputy Chairman
Finance, accounting and tax, controlling, risk management,
loss prevention, IT, IR
55
16
16
Frank Brunner
Member of the Board
Operative store management, sales and services
43
2
11
Susanne Jäger
Member of the Board
Strategic and operative procurement, store planning,
store development, imports, quality assurance
48
29
29
Wolfger Ketzler
Member of the Board
Personnel, real estate development, internal audit and legal
55
1
1
Ingo Leiner
Member of the Board
Logistics, company development, in-house consulting
38
17
17
Jürgen Schröcker
Member of the Board
Marketing, market research, internal communications, public relations,
environmental issues, project show and sales promotion
49
13
25
27
Steady expansion in Europe
RO
Net sal es i n €m
3.500
SK
SE
CH
2002
NL
A
2.000
1.000
1998
1996
1997
1.500
2004
CZ
L
2003
ark
m
Key
2.500
es
i
r
t
n
et e
2007
3.000
500
G e rma n y
12
20
11
/
11
10
/
10
20
20
09
/
09
08
/
08
20
20
07
/
07
06
/
06
20
20
05
/
05
20
04
/
04
20
03
/
03
20
02
/
02
20
01
/
01
20
00
/
00
19
99
/
99
19
98
/
98
19
97
/
97
19
96
/
96
19
95
/
95
94
/
19
19
93
/
94
0
In te rn a tion a l
28
Financial overview
in €m unless otherwise stated
FY 2007/2008
FY 2008/2009
FY 2009/2010
FY 2010/2011
FY 2011/2012
2.469,4
3,2%
36,3%
141,6
5,7%
79,1
3,2%
-20,2
55,8
46,6
2.599,0
5,2%
36,6%
193,2
7,4%
136,5
5,3%
-14,9
121,9
94,9
2.686,5
3,4%
36,8%
168,9
6,3%
114,9
4,3%
-20,6
95,7
68,3
2.836,1
5,6%
37,4%
172,6
6,1%
119,1
4,2%
-20,8
102,0
75,7
3.001,0
5,8%
37,4%
184,3
6,1%
128,4
4,3%
-19,3
106,5
77,4
1350,9
167,1
289,3
515,7
1425,2
236,1
207,0
591,3
1439,4
295,6
126,3
654,7
1591,7
422,6
17,8
729,9
1628,1
404,2
27,7
792,0
67,2
102,2
-35,0
105,0
13,6
123,6
116,6
7,0
81,7
13,7
156,2
126,2
30,0
68,2
13,7
152,6
134,8
17,8
67,9
15,9
103,8
144,0
-40,2
103,8
15,9
2,0
5,1
38,2%
3,4
1,3
5,9
41,5%
3,4
0,7
7,3
45,5%
3,7
0,1
7,1
45,9%
4,0
0,1
7,6
48,6%
4,0
Income statement
Net sales
Sales Growth
Gross margin (% of net sales)
EBITDA
EBITDA margin
EBIT
EBIT margin
Net interest expense
EBT
Net income
Balance sheet
Total assets
Cash & cash equivalents
Net debt
Total equity
Cash flow figures
of which: funds from operations
of which: change in working capital
Investments (Capex)
Dividend distribution
Key ratios
Net debt/adjusted (*) EBITDA
Interest cover
Equity ratio
Inventory turnover
* EBITDA excluding changes in non-current provisions and gains/losses on the disposal of non-current assets as reported in the cash flow statement
29
Cash flow statement
Cash flow statement (abridged)
9m 2012/2013
9m 2011/2012
163.0
184.5
of which: funds from operations
121.5
146.7
41.5
37.8
Cash flow from investing activities
- 89.8
- 69.6
Cash flow from financing activities
- 27.0
- 29.2
Cash-effective change in cash and cash equivalents
46.2
85.7
Change in cash and cash equivalents due to changes in exchange rates
- 0.2
0.6
Cash and cash equivalents at March 1
404.3
422.6
Cash and cash equivalents at November 30
450.2
508.9
€m
of which: change in working capital
Rounding differences possible
30
Disclaimer
This presentation is to be read in the context of the audited financial data of the HORNBACH-Baumarkt-AG Group
and the disclosures made in the notes to the consolidated financial statements contained in the annual report. It
contains statements relating to the future based on assumptions and estimates made by HORNBACH’s Board of
Management. Forward-looking statements are only valid at the time at which they are made. Although we
assume that the expectations reflected in these forecast statements are realistic, the company can provide no
guarantee that these expectations will turn out to be accurate. The assumptions may involve risks and
uncertainties which could result in actual events differing significantly from the forecast statements. Such
factors include those discussed in the “Risk Report” and “Outlook” of the annual report. We do not assume any
obligation to update the forward-looking statements contained in this presentation.
This publication constitutes neither an offer to sell nor an invitation to buy securities. No offer or sale of
transferable securities is being, or will be, made to the public outside Germany, Luxembourg and Austria. An
offer in Germany, Luxembourg and Austria will be made exclusively by means of and on the basis of a
prospectus that will be published on the website of Luxembourg Stock Exchange (www.bourse.lu) and the
company (www.hornbach-group.com).
NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN AND AUSTRALIA.
31