Factbook 3rd Quarter / 9 Months 2017/2018

Transcription

1 Factbook 3rd Quarter / 9 Months 2017/2018 Page 1

2 Status: end-november 2017 HORNBACH Group: #5 DIY retailer in Europe 156 megastores in 9 European countries and online shops focused on retail with DIY, garden and home improvement products for private and professional clients (Hornbach Baumarkt AG subgroup) 29 builders merchant outlets in south-west Germany and France selling construction materials to professional clients (Hornbach Baustoff Union GmbH subgroup) Retail property development for the operating units (Hornbach Immobilien AG subgroup) Sales split 9M 2017/18 6% 44% 50% Hornbach Baumarkt AG [Germany] Hornbach Baumarkt AG [International] Hornbach Baustoff Union Page 2

3 History HORNBACH Group 1877 Foundation st DIY store with garden center st DIY megastore 1987 Going public HORNBACH HOLDING 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 HORNBACH Holding AG into KGaA Page 3

4 Shareholder Structure HORNBACH Group Free Float HORNBACH Familien Treuhand GmbH 100% 62.5% 37.5% HORNBACH Management AG since March 28, 2017 Free Float 23.6% HORNBACH Holding AG & Co. KGaA Neustadt/Weinstraße Listed Ordinary Shares 1 (ISIN DE ) c 76.4% 100% 100% Management (General Partner) HORNBACH Baumarkt AG³ Bornheim Listed Ordinary Shares² (ISIN DE ) HORNBACH Immobilien AG 3 Bornheim Not listed HORNBACH Baustoff Union GmbH 3 Neustadt/Weinstraße Not listed 1 Number of shares: 16,000,000 / Stock market code: HBH 2 Number of shares: 31,807,000 / Stock market code: HBM 3 plus other subsidiary companies in Germany and abroad Page 4

5 Group Structure HORNBACH Group Neustadt/Weinstrasse November 30, % 76.4% 100% Property development for all operating units as well as third parties 156 DIY and garden stores 1.8 million sqm sales area in 9 countries Germany (98) Austria (14), Netherlands (13), Czech Republic (10), Luxembourg (1), Switzerland (6), Sweden (5), Slovakia (3), Romania (6) 29 Outlets Builders merchant business South-West Germany (27) France (2) Page 5

6 Network HORNBACH Group Germany 98 stores 1,052,000 sqm 27 x x 2 x November DIY stores in 9 countries sales area: 1.8 million sqm store size: Ø 11,700 sqm Austria 14 stores 168,600 sqm Czech Republic 10 stores 140,900 sqm Romania 6 stores 86,600 sqm Slovakia 3 stores 46,100 sqm Luxembourg 1 store 12,100 sqm Sweden 5 stores 73,100 sqm Netherlands 13 stores 164,500 sqm Switzerland 6 stores 78,000 sqm Page 6

7 Organic Growth HORNBACH Group GJ 2016/2017: 18,835 employees* FY 2016/2017: 3.94 bn FY 1987/88: 613 employees Sales CAGR ~12% HORNBACH Baumarkt HORNBACH Baustoff Union * incl. passive employees Page 7

8 Expansion 4000 Germany RO International SE 3500 FY 2016/2017: 3.71 bn SK CH Net Sales in million A NL L 45% CZ % % 65% Page 8

9 Market Position Strategy Growth Opportunities Page 9

10 Top 10 Ranking (2016): European DIY Retailers 15,700 Net Sales in million 16,460 6,127 5,375 3,710 3,097 2,600 2,536 2,474 2,236 [Source: Dähne, Company information] Page 10

11 Top 6 Ranking (2016): German DIY Retailers Net Sales (Europe): HORNBACH ranks #3 6,127 5,375 3,710 2,536 2,236 Net Sales in million 1,469 OBI Bauhaus HORNBACH but is #1 in sales per store ( million) ZEUS/Hagebau 2,070 1,751 1, Bauhaus Globus/Hela and sales per sqm ( ) 24.1 OBI Toom HORNBACH Zeus/Hagebau ,263 Globus/Hela OBI 1,122 1, Toom Bauhaus HORNBACH Zeus/Hagebau Toom Globus/Hela [Source: Dähne, Company information] Page 11

12 Average store size, net sales and sales densities (2016): Bubble size = total net sales (Europe) average store size (in sqm) OBI Bauhaus Megastore HORNBACH Toom Globus/Hela Zeus/Hagebau Eurobaustoff EMV-Profi Hellweg Net Sales / sqm [Source: Dähne, HORNBACH] Page 12

13 Volume of the German Core DIY Market in 2016 Extended DIY core market: 48.3 bn E-commerce DIY stores Stationary DIY retail 44.8 bn Distance selling 3.5 bn Online retailers Other DIY distance sales incl. e-commerce Gross sales in billion thereof 2.8 bn e-commerce Baumärkte DIY stores Fachmärkte Specialist retailers Kleinbetriebsformen Small scale formats Distance selling Distanzhandel (incl. e-commerce) und E-Commerce HORNBACH-Gruppe 2017 Seite 13

14 Rising market share in Germany HORNBACH Baumarkt AG + 36% DIY sector (D) HORNBACH (D) 1998 = 100% Like-for-like sales growth in Germany -12% [Source: BHB, HORNBACH] 11.1% 4.9% 1998 Market share in Germany (in % of the sales volume) [Source: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (from 2014), HORNBACH] HORNBACH-Gruppe 2017 Seite 14

15 Sustainable Growth Strategy 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 Page 15

16 What clients expect from us Partner for project customers and professionals Top quality specialist advice Everything in stock Added value with our product range and service offerings Making shopping easier Unique advertising campaigns Every-Day-Low-Price Page 16

17 Customers across Europe honor HORNBACH s concept Page 17

18 Store Formats Prime locations Focus on big catchment areas Large store format Generates economies of scale in store operation and store development Meets customers needs and provides superior shopping experience Homogeneous store network Store Type HORNBACH4 HORNBACH5 HORNBACH6 1) Selling Space (BHB weighted) CapEx 1) Type 4 8,500 10,999 sqm (incl. drive thru) m Type 5 11,000 14,999 sqm m Type 6 15,000 sqm (incl. drive thru) m average CapEx for property and building Page 18

19 Property Ownership and Hidden Reserves HORNBACH Group No. of stores Sales area in % Febraury 28, % Most recent DIY property transactions 2016/2017 2% 28% Rental Multiplier: x21 (December 2016) 33% 44 29% Property HI Property HBM Operating Leases Finance Lease Misc. FY 16/17 ( million) Book value Yield value (x13) Hidden Reserves (x13) Baumarkt Subgroup Immobilien Subgroup HORNBACH Group 1,026 1, Rental Multiplier: x16.5 (January 2017) Page 19

20 Growing online share of DIY retail market What industry experts predict and how HORNBACH responds E-commerce in DIY retailing is expected to account for 25% of sales by % 5.7% e [Source: IFH, BHB, Roland Berger, HORNBACH] Page 20

21 DIY Market Share in Germany: Offline vs. Online According to DIY total sales HORNBACH ranks # 5 Market volume Mrd. 18.0% 16.6% 11.9% 11.9% 11.1% 7.3% OBI Bauhaus ZEUS/Hagebau Toom HORNBACH Globus but is market leader in terms of e-commerce sales of the stationary DIY players in Germany. Market volume (2016) 0.5 Mrd. >30% 28% 18% 15% 4% n/a OBI Bauhaus ZEUS/Hagebau Toom HORNBACH Globus [Source: Dähne, Statista, HORNBACH] Page 21

22 Leading Online Shop for Construction and Renovation Products Catalyst for EDLP transparency and price awareness International roll-out 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 Page 22

23 Going Live Road-Map Country Start of Online Shop Germany December ,000 Austria January ,000 Switzerland November ,000 Netherlands March ,000 Czech Republic December ,000 Luxemburg December ,000 Slovakia August ,000 Sweden October ,000 Romania Planned in Q4 2017/18 Number of SKUs (Nov 2017) - Page 23

24 Elaborated Supply Chain Management for Europe-wide B2B Logistics Sophisticated merchandise management in conjunction with our homogeneous store network Our logistics system combines direct supplies to stores and indirect deliveries via logistics centers Soltau (2012) Enhanced import possibilities Castrop-Rauxel (2015) Lehrte (1994) Berlin (2015) Group-wide integrated IT and merchandise systems Nürnberg (2015) Lorsch (2015) Logistics centers (cross docking, import warehouse) Essingen (1999) Special warehouse (for long and bulky goods) Vilshofen (2005) Page 24

25 B2C Logistics Pure online business: 3 ways to customers Store as e-commerce service partner Reserve & collect at store Direct shipment supplier Home delivery service Collect products ordered online at store Fulfillment HORNBACH DVZ Fulfillment service provider HORNBACH4 HORNBACH6 MVZ Store HORNBACH mailing center Page 25

26 Private Label Strategy Benefits of private labels Private labels share of sales* USP compared with competitors 35,0% Lower dependency on national manufacturer brands 30,0% 25,0% Exclusive control over market launch and market positioning 20,0% Active management of product lifecycle 15,0% Significantly higher gross margins Successful way to counter downward price pressure from internet 30% 10,0% 21,9% 18,9% 15,0% 8,2% 10,3% 5,0% 0,0% * year-end figure Page 26

27 Opportunities and Growth Drivers in the DIY Market HORNBACH Group Sustainability International expansion Increasing need for renovation and modernization Consumer trends Homing (Consumers living trends) (80% of houses/flats > 30 years) Online retailing Energy efficiency (Lower lifecycle cost, CO2 reduction) (Growing share of DIY e-commerce, Omni-Channel and the death of pure play)) Barrier-free living New target groups (ageing of the population) (women, do-it-for-me, seniors) Page 27

28 Financial Year 2016/2017 Page 28

29 Highlights Financial Year 2016/2017 HORNBACH Group Like-for-like sales growth including webshop; International %, Germany % Outperformance of the industry Lower store operating expenses as a percentage of net sales due to lease swap Higher costs due to expansion of e-commerce Stable dividends Further regressive gross margin (37.2 % vs % HBM; 36.6 % vs % HH) Lower negative impact of impairment tests High effective tax rate due to write offs of tax loss carryforward in Sweden Strong balance sheet and high equity ratio (52.8%) Page 29

30 Sustainable Sales Growth HORNBACH Group 3,229 million 1,741 3,369 1,827 3,572 1,966 3,755 2,011 3,941 2, % 1,524 1,670 1,279 1,325 1, / / / / /17 HORNBACH Baustoff Union +4.9% +9.6% HORNBACH Baumarkt AG [International] +4.8% HORNBACH Baumarkt AG [Germany] rounding differences Page 30

31 EBIT HORNBACH Group 3.7% 4.0% 2.6% 2.6% million Margin / / / /2017 based on International Financial Reporting Standards (IFRS) Page 31

32 Group Net Income HORNBACH Group 2.6% 2.3% % 1.4% million Margin Tax rate 13.6% 2015/ % 30.9% 7.6% 2016/ / /2017 Page 32

33 Capital Expenditures HORNBACH Group 179 million / /2017 Olomouc Page 33

34 3rd Quarter / 9 Months 2017/2018 Page 34

35 Highlights 9 Months 2017/2018 HORNBACH Group Group-wide like-for-like sales growth (DIY) of 3.6% Germany +1.6 % Other European countries +6.1% DIY: store openings in Den Haag and Halle, closing Hanau Webshop launched in Slovakia and Sweden Builders merchants business : 2 new HBU outlets in Worms and Baumholder Gross margin slightly above previous year s level Lower store expense ratio Higher administration expense ratio mainly due to ICR EBIT of HORNBACH Group up 12.4% to m in 9M 2017/2018 Sales and earnings forecast 2017/2018 confirmed Page 35

36 Sales Growth 9 Months HORNBACH Group 2,851 2,682 1,597 1,561 3,155 1,658 1,633 1,200 1,451 1,331 1,058 1, / / / / /2018 HORNBACH Baustoff Union +5.1% +1.6% million 1,443 2,980 3, % HORNBACH Baumarkt AG [International] +8.2% HORNBACH Baumarkt AG [Germany] [rounding differences] Page 36

37 Growth in Net Sales HORNBACH Group HORNBACH Holding Group 1, , , , , /2017 million 2017/ % + 4.1% + 4.0% Q1 Q2 Q3 1, , , ,042.7 HORNBACH Baustoff Union Subgroup % + 3.9% + 4.0% % + 7.5% + 4.1% Q1 Q2 Q3 Q1 Q2 Q3 Page 37

38 Like-for-like Sales* Q3 9M Q4 FY Q1 Q2 H1 Q3 9M 2016/ / / / / / / / /18 Total Previous year Germany Previous year International Previous year * In constant currencies Page 38

39 EBIT HORNBACH Group 9 Months 2016/ / % + 9.3% % Q % Q Q3 2016/ /2018 [based on International Financial Reporting Standards (IFRS)] Page 39

40 EBIT Breakdown 9 Months HORNBACH Group 2016/ / % % + 1.1% HBM HBM: HBU: HI: HBU HI HORNBACH Baustoff Union Subgroup HORNBACH Immobilien Subgroup Page 40

41 Net income 9 Months HORNBACH Group HORNBACH Holding Group / / / /2018 Page 41

42 Gross Margin 9 Months HORNBACH Group / / /2016 HORNBACH Holding / /2018 Page 42

43 Earnings per share 9 Months HORNBACH Group / / / /2014 HORNBACH Holding* /2018 *until FY 2014/2015 average earnings per share Page 43

44 Cash Flow Statement HORNBACH Group Cash flow statement (abridged) million Cash flow from operating activities 2017/ / Months 9 Months of which: funds from operations of which: change in working capital Cash flow from investing activities Cash flow from financing activities Cash-effective change in cash and cash equivalents Change in cash and cash equivalents due to changes in exchange rates Cash and cash equivalents at March Cash and cash equivalents at November, rounding differences Page 44

45 Cash Flow Statement Cash flow statement (abridged) million Cash flow from operating activities 2017/ / Months 9 Months of which: funds from operations of which: change in working capital Cash flow from investing activities Cash flow from financing activities Cash-effective change in cash and cash equivalents Change in cash and cash equivalents due to changes in exchange rates Cash and cash equivalents at March Cash and cash equivalents at November rounding differences Page 45

46 Group Balance Sheet Structure (IFRS) HORNBACH Group ASSETS EQUITY and LIABILITIES 2,648 Total assets 2, Liquid funds Inventories, accounts receivable and other assets 768 Non-current assets February 28, , November 30, ,648 Total assets Current liabilities 526 Non-current liabilities 724 Shareholders equity % 52.8% November 30, 2017 February 28, 2017 Page 46

47 Group Balance Sheet Structure (IFRS) ASSETS PASSIVA 1,960 Total assets 2, Liquid funds ,132 Inventories, accounts receivable and other assets 680 Non-current assets 1,146 February 28, 2017 November 30, ,001 1,960 Total assets 419 Current liabilities Non-current liabilities 503 1,089 Shareholders equity 1, % 51.6% November 30, 2017 February 28, 2017 Page 47

48 Capital Expenditures 9 Months HORNBACH Group /2014 sonstige / /2016 HORNBACH Immobilien Subgroup / /2018 Page 48

49 Employees* HORNBACH Group 18,835 19,402 7,693 8,081 International Germany 11,142 11,321 Februar 28, 2017 November 30, 2017 * incl. passive employees Page 49

50 New Store Openings and Outlook 2017/2018 Den Haag, Apr 21, 2017 Halle, Nov 15, 2017 Den Haag opened Halle opened (Q3) Hanau closed (Q3) Sales and earnings forecast HORNBACH Group for FY 17/18: Hanau, Oct 27, 2017 Sales to increase in a medium single -digit percentage range EBIT to match or slightly exceed the previous year s figure (FY 16/17: m) Adjusted EBIT expected to match previous year s level (FY 16/17: m) DISCLAIMER This presentation is to be read in the context of the audited financial data of the HORNBACH Holding 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. Page 50