GJ 20152016 Q3 Factbook Banken eng FINAL - … · In 2014, online retail accounted for around 5% of...

Factbook Q3/9M 2015/2016 ©HORNBACH Group 2016

FACTBOOK Q3/9M 2015/2016


1877 Foundation

1968 1st DIY store withgarden center

1980 1st DIY megastore

1987 Going public HORNBACHHOLDING Group

1993 Going public HORNBACH-Baumarkt Subgroup

1996 Austria

1997 Netherlands

1998 Czech Republic

2001 „Zuckerhut“ Award

2002 Switzerland

2003 Sweden

2004 Slovakia

2004 Emission High Yield bond (6,125%)

2006 HORNBACH wins German„Handelspreis“

2007 Romania

2007 Lifetime Award for Otmar Hornbach

2008 Retailer of the Year in Germany

2010 Start of Multi-Channel Retailing

2013 Emission Eurobond (3,875%)

2015 Change in legal form of HORNBACHHolding AG into „KGaA“

HORNBACH Holding GroupA leading European DIY retailer


Free FloatHORNBACH Familien

Treuhand GmbH

Listed Ordinary shares1

(ISIN DE 0006083405)

HORNBACHBaustoff Union

GmbH3

Neustadt/Weinstraße

HORNBACHImmobilien AG3

Bornheim

56.25% 43.75%

HORNBACHBaumarkt AG³Bornheim

Ordinary shares²(ISIN DE0006084403)

Free Float23.6%

HORNBACH HoldingAG & Co. KGaA

HORNBACHManagement AG(General Partner)

Management

100%

100% 100%76.4%

1 listed / number of shares: 16,000,000 / HBH2 listed / number of shares: 31,807,000 / HBM3 plus other subsidiary companies in Germany and abroad

Shareholder StructureHORNBACH Group

sin

ce

Oc

tob

er

24

,2

01

5


153 DIY and garden stores1.8 million sqm sales area

in 9 countries

Germany (99)Austria (13), Netherlands (11),

Czech Republic (9), Luxembourg (1),Switzerland (6), Sweden (5),

Slovakia (3), Romania (6)

100% 100%76.4%

Property Developmentwithin

HOLDING Group

26 OutletsBuilders‘ merchant

business

South-West Germany (24)France (2)

No

ve

mb

er

30

,2

01

5Shareholder Structure

HORNBACH Group

Neustadt/Weinstrasse


Germany99 stores

1,052,000 sqm

153 DIY storesin 9 countries

sales area:1.8 million sqm

store size:Ø 11,600 sqm

European Network of HORNBACH GroupN

ove

mb

er

30

,2

01

5

Netherlands11 stores

137,700 sqm

Luxembourg1 store

12,100 sqm

Switzerland6 stores

78,000 sqm

Austria13 stores

161,100 sqm

Sweden5 stores

73,100 sqm

Czech Republic9 stores

124,500 sqm

Slovakia3 stores

46,300 sqm

Romania6 stores

86,600 sqm

24 x

2 x


€ 3.57 bn

€ 132 m

87

/8

888

/8

989

/9

090

/9

191

/9

292

/9

393

/9

494

/9

595

/9

696

/9

797

/9

898

/9

999

/0

000

/0

101

/0

202

/0

303

/0

404

/0

505

/0

606

/0

707

/0

808

/0

909

/1

010

/1

111

/1

212

/1

313

/1

414

/1

5

Sustainable Sales GrowthHORNBACH Group


0

500

1000

1500

2000

2500

3000

3500

4000

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Germany International

Successful International ExpansionKey market entries of HORNBACH Baumarkt AG Subgroup

FY 2014/2015:

3.36 bn €

33%

67%

41%

59%

SK

ANL

CZ

SE

CH

RO

L


6131,372

3,924

7,386

12,014

17,320

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Jobmachine HORNBACH Group1987/1988 - 2015/2016


1,8951,8962,2632,4542,607

3,357

4,956

5,791

14,952 14,736

Gro

upeA

deo

Kingfis

herO

BI

Bauhaus

Hornbach

Kesko

Zeus/Hageb

au

Toom

Mr.

Bric

olage

Bricom

arché

Top Ranking of the European DIY Retailers 2014

[Source: Dähne, Company information]


9511,300

2,2632,454

4,956

5,790

3,357

OBI

Bauhaus

HORNBACH

ZEUS/HagebauToom

Globus/Hela

Eurobaustoff

2.6

12.9

6.5

19.4

10.0

23.0

4.7

OBI

Bauhaus

HORNBACH

Zeus/H

ageb

au

Toom

Globus/H

ela

Eurobau

stoff

1,699

1,162

1,970

1,639

1,340

1,733

1,010

OBI

Bauhau

s

HORNBACH

Zeus/H

ageb

auToom

Globus/H

ela

Eurobau

stoff

Top Ranking of the German DIY Retailers 2014[Source: Dähne, HORNBACH]

Net Sales (Europe): HORNBACH ranks #3 …

…but is #1 in sales per store (€ million) … and sales per sqm (€)


0

2000

4000

6000

8000

10000

12000

14000

750 1000 1250 1500 1750 2000

avera

ge

sto

resiz

e(i

nsq

m)

Net Sales/ sqm

OBI

Bauhaus

HORNBACH

Toom

Globus/Hela

Zeus/Hagebau

Eurobaustoff

EMV-Profi

Hellweg

Megastore

DIY Top 10 Germany 2014Average store size, net sales and sales densities

[Source: Dähne, HORNBACH; Hellweg incl. Baywa]

Bubble size = total net sales (Europe)


-13%

+ 33%

[Source: BHB, HORNBACH]

Like-for-like DIY Sales in Germany(calendar year - cumulative)

80

90

100

110

120

130

140

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

19

98

=1

00

%

DIY-Sector (D)

HORNBACH (D)


Mark

et

sh

are

in%

of

DIY

sto

resale

s

4.9

7.1

8.5

10.0

11.0

1998 2000 2002 2004 2006 2008 2010 2012 2014

HORNBACH‘s Market Share in Germany

[Source: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (from 2014), HORNBACH]


Our Strategy for the DIY World

Megastore network& multi-channel retailing

Sophisticatedlogistics & IT

Continuinginternationalisation

Outperforming the DIY market &delivering a unique customer experience

Every-day-low-price

Project-orientedservices

Superiorproduct offering

HORNBACH is the top address for DIY projects


“We’re a Project DIY Store”

Partner for project customersand professionals.

Top quality specialist advice.

Added value with our productrange and service offerings.

Everything in stock.

Making shopping easier.

Unique advertisingcampaigns.

Every-Day-Low-Price.


High Quality Store Network – Our Store Formats

Prime locations

Focus on big catchment areas

Large store format

Homogeneous store network

Generates economies of scalein store operation and store development

Meets customers needs and providessuperior shopping experience

Store Type Selling Space(BHB weighted)

CapEx 1)

Type 48,500 – 10,999 sqmincl. DRIVE IN

15 – 20 €m

Type 5 11,000 – 14,999 sqm 20 – 25 €m

Type 6≥ 15,000 sqmincl. DRIVE IN

25 – 30 €m

Type 2 („HORNBACH Compact“) 2) ~ 800 sqm ~ 2 €m

1) average CapEx for property and building2) currently in trial phase

HORNBACH4

HORNBACH5

HORNBACH6

HORNBACHTyp 2


29%

26%

43%

2%

43

38

61

4

Property HIProperty HBMOperating LeasesOthers

en

d-F

eb

rua

ry2

01

5

FY 14/15

(€ million)

Book value Yield value(x13)

HiddenReserves

(x13)

Baumarkt Subgroup 498 770 272

Immobilien Subgroup 441 788 347

HORNBACH Group 939 1,558 619

Sales area in %No. of stores

Property Ownership and Hidden Reserves


E-Business in DIY Retailing: Gaining in Significance

5.0%

25.0%

2014 2030e

In 2014, online retail accounted for around 5% ofDIY sales in Germany.

Industry experts expect e-commerce to accountfor 25% of sales by 2030.

Online share of DIY retail market (Germany)

[Source: IFH, BHB, Roland Berger]


Since launching its webshop in December 2010,HORNBACH has Germany’s most extensiveonline range of construction and renovationproducts.

Catalyst for EDLP transparency and priceawareness

Time-saving: “Reserve online & collect in-store”

Spill-over benefits for our stores

Additionally addressing customersliving outside of the catchmentareas of our stationary stores

International roll-out

HORNBACH Pursuing Sustainable Multichannel Strategy


Road Map of Going Live

Country Start of Online Shop Number of SKUs(December 2015)

Germany December 2010 110,000

Austria January 2013 83,000

Switzerland November 2014 57,000

Netherlands March 2015 25,000

Czech Republic December 2015

Luxembourg December 2015

Romania / Slovakia / Sweden scheduled for 2017

Advantages of stationary retail Advantages of online retail


Elaborated Supply Chain ManagementEnsures Europe-wide Logistics (B2B)

Sophisticated merchandise managementin conjunction with our homogeneousstore network

Our logistics system combines directsupplies to stores and indirect deliveriesvia logistics centers

Enhanced import possibilities

Group-wide integrated IT andmerchandise systems


Nürnberg (2015)*

Castrop-Rauxel (2015)* Berlin (2015)*

Import warehouse: Soltau (2012) LC: Lehrte (1994)

LC: Essingen (1999)

Lorsch (2015)*

B2B Logistics: Our Network for the Supply of Goods throughout Europe

LC: Vilshofen (2005)

Das Bild kannzurzeit nichtangezeigtwerden.

* Special warehouse for long and bulky goods


B2C Logistics: Mirroring Our Multichannel Strategy

HORNBACHDVZ

Fulfillment

HORNBACH6

MVZ

Fulfillment service provider

HORNBACH mailing center

Direct shipment supplier

HORNBACH4

Store

Home deliveryservice

Reserve &collect at store

Collect productsordered online at store

Pure online business: 3 ways to customers Store as e-commerce service partner


HORNBACH Private Label Strategy

* year-end figure

USP compared with competitors.

Lower dependency on national manufacturerbrands.

Exclusive control over market launchand market positioning.

Active management of product lifecycle.

Significantly higher gross margins!

Successful way to counter downwardprice pressure from internet!

Benefits of private labels

8,2%10,3%

15,0%

17,6%

30,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

FY 06/07 FY 10/11 FY 12/13 FY 14/15 long-termtarget

Private labels share of sales*


Growth Drivers

Cocooning(retreat-to-home lifestyle trend)

New target groups(„women-at-work“, Do-it-for-me, seniors)

Increasing needfor renovation

(80% of houses/flats > 20 years)

Sustainability andenergy efficiency

International expansion

Strong private labels

Multichannel retailing

•Insulation of facades•Replacement of outdated boilers•Use of rainwater•FSC timber products


Financial Year 2015/2016

3rd Quarter / 9 Months


Highlights in the First Nine Months 2015/2016HORNBACH Group

Expansion program for 2015/2016 complete after 4 storeopenings in Q3 (2x NL, 1x AT, 1x RO) – 153 stores in total

Like-for-like Group sales up 2.9% in Q3 and up 1.8% in 9M

Pleasing LFL growth momentum at international stores(Q3: +7.0% / 9M: +3.7%)

DIY stores in Germany on previous year‘s level(Q3: -0.2% / 9M: +0.4%) – Poor November weighs on Q3

Unsatisfactory Q3 earnings performance leaves its mark on9M EBIT

Group gross margin down by 90 bps in Q3 and down by 30 bps in 9M

Disproportionate increase of store expenses and administration

expenses due to higher costs for digitization

Pre-opening expenses below previous year‘s level

Due to improved net financial expenses (FX items) and lower

tax rate EPS fall only slightly short of previous year‘s figures


Q3/9M Key figuresHORNBACH Group


Q3/9M Key figuresHORNBACH Baumarkt AG Subgroup


172 178 180 180 182

1,025 1,033 1,058 1,1091,200

1,385 1,395 1,4431,561

1,597

2011/12 2012/13 2013/14 2014/15 2015/16

HORNBACH Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany]

+8.2%

+2.3%

+4.5%

2,582

+1.2%

2,607 2,6822,851 2,980

Growth in Net Sales – Nine MonthsHORNBACH Group

[rounding differences]


1,035.1940.4

875.8

1,052.1 1,002.5925.6

Q 1 Q 2 Q 3

2014/15

2015/16

976.7878.3

814.9

995.2938.2

863.0

Q 1 Q 2 Q 3

58.0 61.7 60.556.463.9 62.2

Q 1 Q 2 Q 3

HORNBACH Holding Group

HORNBACH Baumarkt AG Subgroup HORNBACH Baustoff Union GmbH Subgroup

+ 6.6%+ 1.6% + 5.7%

+ 6.8%+ 1.9% +5.9% + 3.6%- 2.8% + 2.8%

Net SalesHORNBACH Group


Like-for-like Sales*HORNBACH Baumarkt AG Subgroup

* in constant currencies

(Financial Year)

FY2014/15

Q12015/16

Q 22015/16

H 12015/16

Q 3

2015/16

9 M

2015/16

Total 4.4 (1.1) 4.0 1.3 2.9 1.8

Previous year 2.7 14.6 (1.0) 6.7 1.0 4.9

Germany 5.5 (2.4) 4.0 0.6 (0.2) 0.4

Previous year 4.9 19.4 (1.0) 8.9 1.4 6.5

International 2.8 0.7 4.0 2.3 7.0 3.7

Previous year (0.1) 8.2 (1.0) 3.6 0.6 2.6


Reduction in retail prices(internet & discount campaigns at competitors)

Freight costs (B2C) not covered by freight revenues

Product range changes due to different product mixof increasing e-commerce sales

One-off base effect of procurement terms fortransformed Praktiker/Max Bahr stores

Gross Margin - Nine Months

37.4 37.3 37.2

37.937.6

36.5 36.5 36.4

37.236.9

9M 2011/12 9M 2012/13 9M 2013/14 9M 2014/15 9M 2015/16

HORNBACH Baumarkt Subgroup HORNBACH Holding

Lower procurement prices almost compensatingfor decreasing retail prices

Positive currency items

Impacts on gross margin


nine months

€m

illi

on

based on International Financial Reporting Standards (IFRS)

1) Previous year‘s figures adjusted due to IFRIC 21

EBITHORNBACH Group

191.2 172.5

2014/15 2015/16

88.2

65.8

37.2

76.8 74.4

21.3

Q 1 Q 2 Q 3

2014/15

2015/16

- 9.8%

- 13.0% + 13.0%

- 42.7%

1)


EBIT Breakdown – Nine Months

HBM: HORNBACH Baumarkt Subgroup

HBU: HORNBACH Baustoff Union Subgroup

HI: HORNBACH Immobilien Subgroup

€m

illi

on

1)

142.2

8.7

42.8

127.3

8.3

41.3

HBM HBU HI

2014/15

2015/16

- 5.1%

- 10.4%

- 3.6%



Earnings per Share - Nine Months 1)

5.87

5.21 5.38

6.15 5.94

3.172.58 2.51

2.90 2.88

2011/12 2012/13 2013/14 2014/15 2015/16

HORNBACH Holding HORNBACH Baumarkt Subgroup



Cash Flow StatementHORNBACH Group

Cash flow statement (abridged) 2015/2016 2014/2015

€ million 9 months 9 months

Cash flow from operating activities 195.1 198.0

of which: funds from operations 174.0 173.7

of which: change in working capital 21.1 24.3

Cash flow from investing activities -118.3 -86.9

Cash flow from financing activities -33.1 -51.9

Cash-effective change in cash and cash equivalents 43.7 59.1

Change in cash and cash equivalents due to changes inexchange rates 0.0 -0.2

Cash and cash equivalents at March 1 400.9 428.8

Cash and cash equivalents at November 30 444.6 487.7

rounding differences


1)


Cash flow statement (abridged) 2015/2016 2014/2015

€ million 9 months 9 months

Cash flow from operating activities 168.9 164.8

of which: funds from operations 135.3 131.5

of which: change in working capital 33.6 33.3

Cash flow from investing activities -108.6 -75.9

Cash flow from financing activities -13.0 -36.2

Cash-effective change in cash and cash equivalents 47.3 52.7

Change in cash and cash equivalents due to changes inexchange rates -0.1 -0.1

Cash and cash equivalents at March 1 334.8 371.1

Cash and cash equivalents at November 30 382.1 423.7

Cash Flow StatementHORNBACH Baumarkt AG Subgroup



1)


681

1,2591,356

576

617 494

51.7%

674

401

1,358 1,419

686

445

2,433 2,549

November 30, 2015 November 30, 2015

53.2%

2,4332,549

Group Balance Sheet Structure (IFRS)HORNBACH Group

ASSETS EQUITY and LIABILITIES

February 28, 2015 February 28, 2015

Total assets

Liquid funds

Inventories,accounts receivable

and other assets

Non-current assets

Total assets

Shareholders‘ equity

Current liabilities

Non-current liabilities


1)



408

993 922

326

401526

53.3%

797 858

599605

335382

1,731 1,845 1,7311,845

53.8%

Group Balance Sheet Structure (IFRS)HORNBACH Baumarkt Subgroup

ASSETS EQUITY and LIABILITIES

Total assets Total assets

Liquid funds

Inventories,accounts receivable

and other assets

Non-current assets

Shareholders‘ equity

Current liabilities

Non-current liabilities

February 28, 2015 November 30, 2015 November 30, 2015 February 28, 20151) Previous year‘s figures adjusted due to IFRIC 21

1)



Outlook


Store Openings 2015/2016 – CapEx – EBIT Forecast

Saarbrücken

Sibiu

Klagenfurt

Geleen

Best

Regau

Saarbrücken (replacement)

Regau

Neunkirchen (HB Compact)

Alzey (HB Compact)

Geleen (replacement)

Klagenfurt

Sibiu

Best

Forecast CapEx 15/16:HOLDING ≤ 170 €mHBM ≤ 160 €m

Forecast EBIT 15/16:HOLDING ≥ 140 €mHBM ≥ 88 €m


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 theconsolidated financial statements contained in the annual report. It contains statements relating to the future based on assumptions and estimates made byHORNBACH’s Board of Management. Forward-looking statements are only valid at the time at which they are made. Although we assume that the expectationsreflected in these forecast statements are realistic, the company can provide no guarantee that these expectations will turn out to be accurate. Theassumptions may involve risks and uncertainties which could result in actual events differing significantly from the forecast statements. Such factors includethose discussed in the “Risk Report” and “Outlook” of the annual report. We do not assume any obligation to update the forward-looking statementscontained in this presentation.

GJ 20152016 Q3 Factbook Banken eng FINAL - … · In 2014, online retail accounted for around 5% of...

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