- Hornbach Holding AG

HORNBACH 2015
FACTBOOK 2014/2015
HORNBACH HOLDING Group
A leading European DIY retailer
2
1877
Foundation
2002
Switzerland
1968
1st DIY store with
garden center
2003
Sweden
2004
Slovakia
2004
Emission High Yield bond (6,125%)
2006
Going public HORNBACHBaumarkt Subgroup
HORNBACH wins German
„Handelspreis“
2007
Romania
1996
Austria
2007
Lifetime Award for Otmar Hornbach
1997
Netherlands
2008
Retailer of the Year in Germany
1998
Czech Republic
2010
Start of Multi-Channel Retailing
2001
„Zuckerhut“ Award
2013
Emission Eurobond (3,875%)
1980
1987
HORNBACH 2015
1993
1st DIY megastore
Going public HORNBACH
HOLDING Group
Current Shareholder Structure
HORNBACH Group
3
Preference shares1
Ordinary shares2
(ISIN DE0006083439)
(ISIN DE0006083405)
Free Float
HORNBACH Familien
Treuhand GmbH
100%
voting rights
February 2015
50%
50%
Neustadt/Weinstraße
76.4%1
100%
100%
HORNBACH
Immobilien AG3
HORNBACH
Baustoff Union GmbH3
Bornheim
Neustadt/Weinstraße
HORNBACH-Baumarkt-AG3
HORNBACH 2015
Free Float
23.6%
Bornheim
Ordinary shares1
(ISIN DE0006084403)
1 listed on the stock exchange (number of shares: 8,000,000 HBH3 / resp. 31,807,000 HBM)
2 not listed (number of shares: 8,000,000 HBH3)
3 plus other subsidiary companies in Germany and abroad
Planned transformation of legal form and simplification of share
structure
KGaA (partnership limited by shares) structure and combination of share classes
4
Listed Ordinary shares1
HORNBACH Familien
Treuhand GmbH
KGaA structure
Free Float
50%
100%
50%
Hornbach
Management AG
(General Partner)
Hornbach Holding
AG & Co. KGaA
76.4%1
100%
HORNBACH
Immobilien AG2
Bornheim
HORNBACH-Baumarkt-AG2
Management
100%
HORNBACH
Baustoff Union
GmbH2 Neustadt/Weinstraße
Bornheim
HORNBACH 2015
Free Float
23.6%
Ordinary shares1
(ISIN DE0006084403)
1 listed on the stock exchange
2 plus other subsidiary companies in Germany and abroad
Shareholder Structure
HORNBACH Group
5
HORNBACH 2015
February 2015
Neustadt/Weinstraße
100%
76.4%
Property Development
within
HOLDING Group
146 DIY and garden stores
1.7 mn sqm sales area
in 9 countries
Germany (97)
Austria (11), Netherlands (9),
Czech Republic (9), Luxembourg (1),
Switzerland (6), Sweden (5),
Slovakia (3), Romania (5)
100%
27 Outlets
Builders‘ merchant
business
South-West Germany (25)
France (2)
European Network of HORNBACH Group
6
HORNBACH 2015
February 2015
Germany
97 stores
1,039,300 sqm
 146 DIY stores
in 9 countries
 sales area:
1.7 million sqm
 store size:
Ø 11,700 sqm
25 x
2 x
Austria
11 stores
141,500 sqm
Romania
5 stores
77,500 sqm
Czech Republic
9 stores
124,700 sqm
Slovakia
3 stores
46,300 sqm
Luxembourg
1 store
12,100 sqm
Sweden
5 stores
73,100 sqm
Netherlands
9 stores
111,100 sqm
Switzerland
6 stores
78,600 sqm
Store Openings 2015/2015
7
Opening
Sales Area in sqm
Lübeck
2015-03-12
8,131
Prag Cestlice
2015-03-19
14,649
Trier*
2015-06-04
8,756
Schwabach
2015-07-02
10,411
2015-07-28
828
Ulm
2015-09-03
9,852
Lüneburg
2015-09-24
9,979
Kamen
2015-10-29
8,533
Bad Bergzabern
HORNBACH 2015
(HB Compact)
*replacement
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
HORNBACH 2015
Sustainable Sales Growth
HORNBACH Group
8
€ 3.57 bn
€ 132 m
Successful International Expansion
Key market entries of HORNBACH-Baumarkt-AG Subgroup
9
FY 2015/2015:
RO
4000
3.36 bn €
SK
SE
3500
CH
3000
NL
2500
41%
CZ
L
A
2000
1500
33%
1000
67%
59%
500
Germany
International
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
HORNBACH 2015
0
Constant growth in Net Sales
10
146
1750
1,000 sqm
1500
131
1,480
1250
11,300
qm
133
1,514
11,400
qm
134
1,549
11,600
qm
138
1,598
11,600
qm
141
1,647
11,700
qm
1,704
125
11,700
qm
100
1000
75
750
50
500
09/10
10/11
HORNBACH 2015
number of stores
11/12
12/13
average store size
13/14
14/15
sales area
No. of Stores
2000
* end of financial year
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
HORNBACH 2015
Jobmachine HORNBACH Group*
1987/1988 - 2015/2015
11
16,455
12,014
7,386
3,924
1,372
613
HORNBACH 2015
12
Market Position – Strategy – Growth Opportunities
Top Ranking of the European DIY Retailers 2015
13
14,952
14,736
5,791
4,956
3,357
2,607
HORNBACH 2015
pe
u
ro
G
A
o
de
n
Ki
g
he
fis
r
B
O
I
[Source: Dähne, Company information]
Ba
u
us
a
h
rn
o
H
ch
a
b
ko
s
Ke
Z
Ha
/
s
eu
2,454
ba
e
g
u
2,263
om
o
T
M
B
r.
1,896
a
ol
c
ri
ge
ic
Br
1,895
c
ar
m
o
hé
Top Ranking of German DIY Retailers 2015
14
5,790
4,956
[Source: Dähne,
HORNBACH]
Net Sales (Europe): HORNBACH ranks #3 …
3,357
2,454
2,263
1,300
I
OB
a
uh
Ba
us
HO
CH
BA
N
R
ba
age
H
/
US
ZE
…but is #1 in sales per store (€ million)
u
uf
tka
k
r
/ Ma
om
To
G
us
lob
951
la
/He
aus
rob
u
E
f
tof
… and sales per sqm (€)
23.0
19.4
1,970
1,733
12.9
1,340
1,162
10.0
4.7
1,699
1,639
1,010
6.5
HORNBACH 2015
2.6
I
OB
s
au
h
u
Ba
R
HO
A
NB
CH
/
us
Ze
u
ba
e
g
Ha
f
au
tk
k
ar
/M
m
o
To
e
s/H
u
ob
Gl
la
ff
sto
u
ba
ro
u
E
I
OB
au
uh
Ba
s
HO
H
AC
B
RN
u
Ze
ag
s/H
a
eb
u
T
m
oo
u
tka
rk
a
/M
f
ob
Gl
el a
/H
s
u
Eu
ro
us
ba
f
to
f
DIY Top 10 Germany 2015
average store size, net sales and sales densities
15
Bubble size = total net sales (Europe)
average store size (in sqm)
14000
OBI
12000
Bauhaus
Megastore
HORNBACH
10000
Toom/Marktkauf
8000
Globus/Hela
Zeus/Hagebau
6000
Eurobaustoff
EMV-Profi
4000
Hellweg
2000
0
750
1000
1250
1500
HORNBACH 2015
Net Sales/ sqm
[Source: Dähne, HORNBACH; Hellweg incl. Baywa]
1750
2000
Store portfolio of the largest German DIY players
Distribution (%) of sales area by size category
HORNBACH 2015
Store size in steps of 1,000 sqm
16
20%
18%
20%
16%
14%
16%
12%
10%
8%
12%
6%
4%
6%
2%
0%
2%
20%
18%
18%
16%
14%
12%
14%
10%
10%
8%
8%
6%
4%
2%
4%
0%
0%
0
2
4
6
8 10 12 14 16 18 20 22 25
0
2
4
6
8 10 12 14 16 18 20 22 25
26%
26%
26%
24%
24%
24%
22%
22%
22%
20%
20%
20%
18%
18%
18%
16%
16%
16%
14%
14%
14%
12%
12%
12%
10%
10%
10%
8%
8%
8%
6%
6%
6%
4%
4%
4%
2%
2%
2%
0%
0%
0
2
4
6
8 10 12 14 16 18 20 22 25
Source: Dähne (as of end-December 2013)
0
2
4
6
8 10 12 14 16 18 20 22 25
0
2
4
6
8 10 12 14 16 18 20 22 25
0%
0
2
4
6
8 10 12 14 16 18 20 22 25
in % of total sales area of DIY player
Like-for-like DIY Sales in Germany
(calendar year - cumulative)
17
140
130
DIY-Sector (D)
+ 33%
HORNBACH (D)
1998 = 100%
120
110
100
90
HORNBACH 2015
80
-13%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
[Source: BHB, HORNBACH]
Like-for-like Sales
DIY in Germany – Calendar Year
18
HORNBACH 2015
difference to previous year in %
HORNBACH‘s outperformance in the German DIY sector
7.9
5.0
2.3
-2.6
2013
2014
HORNBACH‘s Market Share in Germany
19
Market share in % of DIY store sales
11.0
10.0
8.5
7.1
4.9
HORNBACH 2015
1998
2000
2002
2004
2006
2008
2010
[Quelle: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (from 2015), HORNBACH]
2012
2014
Our Strategy for the DIY World
20
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
HORNBACH 2015
Outperforming the DIY market &
delivering a unique customer experience
Top Position in „Kundenmonitor Deutschland 2015“
Overall Customer Satisfaction
21
 HORNBACH comes top once again, even beating last year‘s results
 Top position in categories including:
HORNBACH 2015
Value for money – Prices compared with competitors – Product selection and variety – Services
Product quality – Up-to-dateness of product range – Private labels – Willingness to repeat purchase
 Ranked 1st in 6 of 9 product range disciplines
 Overall: 20x 1st position and 7x 2nd position in 35 different categories
“We’re a Project DIY Store”
22
 Partner for project customers
and professionals.
 Top quality specialist advice.
 Added value with our product range
and service offerings.
 Everything in stock.
 Making shopping easier.
 Unique advertising campaigns.
HORNBACH 2015
 Every-Day-Low-Price.
High Quality Store Network
23
HORNBACH 2015




Prime locations
Focus on big catchment areas
Large store format
Homogeneous store network
 Generates economies of scale
in store operation and store development
 Meets customers needs and provides
superior shopping experience
E-business gaining in significance
24
 Since launching its webshop in December 2010,
HORNBACH has Germany’s most extensive
online range of construction and renovation products.
 More than 60,000 articles in the virtual DIY store
 Catalyst for EDLP transparency and price awareness
 Time-saving: “Reserve online & collect in-store”
 Spill-over benefits for our stores
 Additionally addressing customers
living outside of the catchment
areas of our stationary stores
HORNBACH 2015
 International roll-out
Elaborated supply chain management
ensures Europe-wide logistics
25
 Sophisticated merchandise management in
conjunction with our homogeneous store
network
 Our logistics system combines direct
supplies to stores and indirect deliveries via
8 logistics centers
 Enhanced import possibilities
HORNBACH 2015
 Group-wide integrated IT and merchandise
systems
150.742 sqm logistic area for the supply of goods throughout Europe
HORNBACH 2015
26
Soltau sice 2012
Lehrte since 1994
Castrop-Rauxel since
2015
Berlin since 2015
Lorsch since 2015
Nuremberg since 2015
Essingen since
1999
Vilshofen since 2005
Growth drivers
27
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
HORNBACH 2015
• Insulation of facades
• Replacement of outdated boilers
• Use of rainwater
• FSC timber products
International expansion
28
HORNBACH 2015
Financial Figures
Financial Year 2015/2015
Highlights in FY 2015/2015
HORNBACH Group
HORNBACH 2015
29

8 store openings (of which 1 replacement)

LFL sales growth of 4.4%
(Germany +5.5%, International +2.8%)

Jump in online sales

Higher gross margin (37.3 % vs. 36.6 %)

Higher store expenses (27.9 % vs. 27.3 %)

Higher pre-opening expenses (0.4 % vs. 0.3 %)

Higher costs of central administration
due to increased project costs (4.6% vs. 4.4%)

EBIT above previous year

EBT and Net Income growing faster than sales
due to improved financial result and one-off tax impacts
Constant Growth in Net Sales
HORNBACH HOLDING AG Group
30
3,017
1,641
1,195
3,204
3,229
1,729
1,741
3,369
3,572
+6.0%
1,966
1,827
+7.6%
1,279
1,272
1,325
1,390
+5.0%
180
202
207
216
213
2010/11
2011/12
2012/13
2013/14
2014/15
HORNBACH 2015
HORNBACH Baustoff Union
[rounding differences]
HORNBACH-Baumarkt-AG [International]
-1.1%
HORNBACH-Baumarkt-AG [Germany]
Net Sales
31
HORNBACH HOLDING AG Group
HORNBACH-Baumarkt Subgroup
2013/14
1035
892
939 940
2014/15
977
851 876
839
874 878
788 815
HORNBACH 2015
688 720
651 687
+16.0%
+0.2%
+2.9%
+4.8%
+16.4%
+0.5%
+3.4%
+5.4%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Like-for-like Sales*
HORNBACH-Baumarkt Subgroup
32
HORNBACH 2015
FY
Q1
Q2
H1
Q3
9M
Q4
FY
2013/14 2015/15 2015/15 2015/15 2015/15 2015/15 2015/15 2015/15
Total
2.7
14.6
-1.0
6.7
1.0
4.9
2.4
4.4
Germany
4.9
19.4
-1.0
8.9
1.4
6.5
1.8
5.5
International
-0.1
8.2
-1.0
3.6
0.6
2.6
3.4
2.8
* in constant currencies
EBIT
33
HORNBACH Group
Margin
4.8%
160
HORNBACH 2015
2013/2014
4.6%
HORNBACH-Baumarkt Subgroup
3.3%
3.3%
105
110
65%
73%
35%
27%
2013/2014
2014/15
165
2014/2015
International
based on International Financial Reporting Standards (IFRS)
Germany
EBIT Breakdown
HORNBACH Group
34
Operating Breakdown
2013/14
2015/15
Geographical Breakdown
102.5
105.1 109.8
89.1
71.2
+4%
51.1 51.5
+20%
5.5
HBM
63.4
6.5
+1%
HBU
HI
+15%
-11%
Germany
EBIT vs. Sales Breakdown FY 2015/2015
Inter- Germany
national 38%
HORNBACH 2015
62%
HBM: HORNBACH-Baumarkt-AG
HBU: HORNBACH Baustoff Union
HI:
HORNBACH Immobilien AG
EBIT
Inter- Germany
national
61%
39%
Sales
International
EBIT Breakdown
HORNBACH-Baumarkt Subgroup
35
Operating Breakdown
2013/14
2015/15
Geographical Breakdown
82.4
80.6
71.2
68.3
51.3
48.5
+16%
36.7
-5%
Retail
Real Estate
29.6
-19%
Germany
EBIT vs. Sales Breakdown FY 2015/2015
International Germany
27%
HORNBACH 2015
73%
EBIT
+18%
Inter- Germany
national 59%
41%
Sales
International
Group Net Income
36
HORNBACH Group
Margin
2.6%
86
3.0%
HORNBACH-Baumarkt Subgroup
1.8%
107
56
HORNBACH 2015
2013/2014
2.1%
2014/2015
2013/2014
70
2014/2015
Gross Margin
37
38.0
37.4
37.4
37.3
37.4
36.6
36.6
36.5
36.6
2010/11
2011/12
2012/13
2013/14
HORNBACH 2015
HORNBACH Group
37.3
2014/15
HORNBACH-Baumarkt Subroup
Earnings per Share
38
5.64
5.07
4.77
4.55
4.06
2.43
2.38
2010/11
2011/12
1.64
1.77
2012/13
2013/14
HORNBACH HOLDING Group
HORNBACH 2015
average earnings per share
2.19
2014/15
HORNBACH-Baumarkt Subgroup
Capital Expenditures
HORNBACH Group
39
163
113
116
104
117
68
50
39
2010
2011
others
HORNBACH 2015
149
72
22
36
2012
2013
HORNBACH Immobilien Subgroup
119
100
10
2014
HORNBACH-Baumarkt-AG
Olomouc
Group Balance Sheet Structure (IFRS)
HORNBACH HOLDING Group
40
ASSETS
EQUITY and LIABILITIES
2,362
Total assets
2,433
2,433
429
Liquid funds
401
491
623
Inventories,
accounts receivable
and other assets
1,310
Non-current assets
674
1,358
681
1,261
Total assets
Current liabilities
500
Non-current liabilities
698
Shareholders‘ equity
1,164
51.8%
HORNBACH 2015
February 28, 2015
February 28, 2015
2,362
February 28, 2015
49.3%
February 28, 2015
Group Balance Sheet Structure (IFRS)
HORNBACH-Baumarkt Subgroup
ASSETS
41
1,670
371
559
740
EQUITY and LIABILITIES
Total assets
1,731
1,731
335
400
599
408
Liquid funds
Inventories,
accounts receivable
and other assets
Non-current assets
797
Total assets
Current liabilities
Non-current liabilities
923
Shareholders‘ equity
53.3%
HORNBACH 2015
February 28, 2015
February 28, 2015
1,670
February 28, 2015
383
425
862
51.6%
February 28, 2015
HORNBACH 2015
42
Outlook
New Store Openings 2015/2016
43
Saarbrücken (replacement) 
Regau

Klagenfurt
Geleen (replacement)
Best
Sibiu
Geleen
Best
Hornbach Compact
Saarbrücken
Regau
HORNBACH 2015
Klagenfurt
Sibiu
Financial Calendar
44
HORNBACH 2015
June 26, 2015
Interim Report 1st Quarter 2015/2016
as of May 31, 2015
July 8, 2015
July 9, 2015
Annual General Meeting
HORNBACH-Baumarkt-AG
HORNBACH HOLDING AG
July 10, 2015
Separate Meeting of the Preference Shareholders
HORNBACH HOLDING AG
September 29, 2015
Half-Year Financial Report 2015/2016
as of August 31, 2015
and
DVFA Analysts' Conference
of HORNBACH HOLDING AG
December 21, 2015
Interim Report 3rd Quarter 2015/2016
as of November 30, 2015
Opening Regau March 2015
HORNBACH 2015
45
DISCLAIMER
This presentation is to be read in the context of the audited financial data of the HORNBACH HOLDING 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.