Factbook 3rd Quarter / 9 Months 2018/19

Transcription

1 Factbook 3rd Quarter / 9 Months 2018/19 Page 1

2 DIY retailer with three different business segments DIY 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) 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 FY 2017/18 44% 6% HORNBACH Baumarkt AG [Germany] 50% HORNBACH Baumarkt AG [International] Hornbach Baustoff Union GmbH Page 2

3 Status: November DIY megastores and garden centers across Europe + 30 builders merchant outlets Sweden 6 stores 78,800 sqm Boras - opened Sep 27, 2018 DIY megastores Netherlands 14 stores 176,500 sqm Luxembourg 1 store 12,100 sqm Zwolle - opened Mar 14, 2018 Alzey Closed Apr 28,.2018 Germany 97 stores 1,051,200 sqm Czech Republic 10 stores 140,900 sqm sales area: 1,85 million sqm store size: Ø 11,700 sqm Builders merchant outlets 28 x 2 x Switzerland 7 stores 90,000 sqm Affoltern - opened May 26, 2018 Austria 14 stores 168,900 sqm Slovakia 3 stores 46,100 sqm Romania 6 stores 86,400 sqm Page 3

4 Status: November 30, 2018 Interconnected Retail (ICR) in all regions DIY multichannel retail is based on three pillars: Direct delivery (no store contact) Order/ delivery via store Click & collect (C&C) Netherlands since March ,000 items Czech Republic since December ,000 items Slovakia since August ,000 items Germany since December ,000 items Austria since January ,000 items Switzerland since November ,000 items Luxemburg since December ,000 items Sweden since October ,000 items Romania since January ,000 items Page 4

5 Since March 28, 2017 Two publicly listed corporations Free Float Hornbach Familien Treuhand GmbH 100% Free Float 62.5% 37.5% HORNBACH Holding AG & Co. KGaA Neustadt/Weinstraße Listed Ordinary Shares 1) (ISIN DE ) c HORNBACH Management AG Management (General Partner) 23.6% 76.4% 100% 100% HORNBACH Baumarkt AG 3) 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 5

6 Our Key Success Factors Publicly listed family company Focus on B2C and B2B clients with large DIY projects Continued implementation of interconnected retail strategy Rising share of own brands Own real estate portfolio and efficient logistics network Organic growth above sector average Highest productivity per sqm in the German DIY sector Leading in DIY online retail High customer satisfaction across Europe Page 6

7 From a small craftsman business to a European DIY Group Roll-out international online shops Austria (2013), Switzerland (2014), Netherlands, Czech Republic, Luxemburg (2015), Slowakia, Sweden (2017), Romania (2018) Change in legal form of HORNBACH Holding AG in KGaA Going public HORNBACH Holding AG 1st DIY store with drive-through Going public HORNBACH Baumarkt AG Start online shop Germany 2003 Emission Eurobond (3,875%) Expansion Austria (1996), Netherlands (1997), Czech Republic (1998), Switzerland (2002), Sweden (2003), Slowakia (2004), Romania (2007) st DIY megastore Karlsruhe 1st DIY store with garden center Bornheim Foundation of handicraft business Page 7

8 Project DIY store for DIY fans and professionals Focus on project customers tackling major DIY projects Broad and deep product range More than 50,000 articles stocked in sufficient quantities at stores Extended product range of up to 168,000 SKUs at online shop Permanent low prices rather than discount campaigns Price leadership online and at stores in all regions Price guarantee Competent advice and services for all aspects of DIY projects IHK-certified advisors with planning and project competence Tradesman service, rental service, financing, repairs Support for professionals and Proficard Page 8

9 Consistent ICR* strategy Permanently low prices identical online and at store Online shop as catalyst for permanent low price strategy and price image Select your level of store contact: Click & collect at store Direct delivery to home / building site Delivery to store Additional services: Product availability and location within store Central customer service center Planning tools for DIY projects / configurators, online paint mix service etc. Product finder with image recognition Online shop rolled out to all HORNBACH countries *Interconnected Retail Page 9

10 Private labels offer added value Plan to raise share of private label sales from 23.4% (2017/18) to 30% Private labels differentiate us from competitors and boost customer retention Less dependency on manufacturers brands for innovation and quality (specification, certifications, auditing) Full control over brand launch and positioning Ability to actively manage product lifecycle Significantly higher gross margins while offering very good value for money No direct price competition Page 10

11 Status: February 28, 2018 Property ownership and hidden reserves No. of stores Sales area in % Hidden reserves in retail properties * % 2% 28% FY 2017/18 ( million) Book value Yield value (x13) Hidden reserves (x13) % 29% HORNBACH Baumarkt Subgroup (HBM) Property HI Operating Leases Property HBM Finance Lease HORNBACH Immobilien Subgroup (HI) Others HORNBACH Group 1,029 1, *based on our own assumptions and calculations Page 11

12 Investment in prime locations Focus on big catchment areas Large store format: 85% of stores > sqm Homogeneous store network: Economies of scale in store operation and store development Meets customers needs and provides superior shopping experience HORNBACH 4 8,500 10,999 sqm incl. drive through Selling Space (BHB weighted) CapEx 1) million HORNBACH 5 11,000 14,999 sqm million HORNBACH 6 15,000 sqm incl. drive through million 1) average CapEx for property and building Page 12

13 Logistics network for store deliveries (B2B) Soltau (56,000 sqm) 2012 Central WH 2017 Extension Lehrte (55,000 sqm) 1994 Regional WH 1999 Extension cross-docking 2011 Extension regional WH Berlin (5,200 sqm) 2015 Cross-docking Castrop-Rauxel (11,400 sqm) 2015 Cross-docking Lorsch (24,700 sqm) 2015 Regional WH & Cross Docking Essingen (26,900 sqm) 1999 Regional WH & Cross Docking Vilshofen (30,300 sqm) 2005 Regional WH & Cross Docking 2018 Extension Cross Docking 8 logistics sites 150,000 storage spaces 215,000 sqm warehouse space Enzersdorf a/d Fischa (5,200 sqm) 2018 Cross-docking bulk Page 13

14 Logistics to customers (B2C) HORNBACH Baumarkt Subgroup The store as a partner for e-commerce Online sales: 3 delivery options Direct delivery Click and Collect in store DV Supplier Fulfillment Partner DVZ HORNBACH Fulfillment Centre Pick-up store Delivery Pick-up of online orders in store HORNBACH Delivery Center Page 14

15 Sustainable success Page 15

16 Sales Growth since 1987/88 HORNBACH Group FY 2017/18: 4.14 bn net sales (CAGR ~12% / 30 years) 6% 44% FY 1987/88: 132 million net sales 50% HORNBACH Baumarkt [Germany] HORNBACH Baumarkt [International] Hornbach Baustoff Union * incl. passive employees Page 16

17 Number of Employees since1987/88 HORNBACH Group Employees 2017/18 19,614 42% 58% 12,710 14,913 9,519 Germany Europe 5, , / / / / / / /18 Page 17

18 Gross sales in billion Core DIY market volume in Germany in 2017 (total sales including online sales) of which online: ~ 230 million 22.4 of which online: ~ 600 million of which online: ~ 360 million 45.7 of which online total: ~ 1.2 billion DIY stores Specialist retailers Small scale formats Total DIY core market [Source: BHB, GfK, IFH, Teipel Retail & Consulting, HORNBACH] Page 18

19 1998 = 100% Performance and market share in Germany HORNBACH Baumarkt Subgroup 1998: 2017: 2017: 5% market share 11% market share & >30% market share online # 5 stationary business # 5 stationary business # 1 online +36% DIY sector (GER) HORNBACH (GER) Like-for-like sales growth in Germany -11% [Source: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (since 2014), HORNBACH] Page 19

20 Net sales (Europe) in million; growth in % HORNBACH ranks #3 among German DIY Retailers (2017) HORNBACH Baumarkt AG 6,176 5,407 but growth faster than its competitors 3,891 2,588 2,250 1, % +0.6% +4.9% +2.0% +0.6% -0.2% OBI Bauhaus HORNBACH ZEUS/Hagebau Toom/B1 Globus/Hela and is #1 in sales per store ( million) and sales per sqm ( ) ,267 1,684 2,135 1,099 1,044 1,842 OBI Bauhaus HORNBACH Zeus/Hagebau Toom/B1 Globus/Hela OBI Bauhaus HORNBACH Zeus/Hagebau Toom/B1 Globus/Hela [Source: Dähne, HORNBACH] Page 20

21 Average store size (in sqm) Average store size, net sales and sales densities (2017): HORNBACH Baumarkt Subgroup Bubble size = Net sales (Europe) BAUHAUS HORNBACH Megastore GLOBUS HELLWEG OBI TOOM HAGEBAU/ZEUS BAUVISTA* EUROBAUSTOFF [Source: Dähne, HORNBACH] Net sales per sqm Page 21

22 Net sales in million Top 10 Ranking (2017): European DIY Retail Groups HORNBACH Baumarkt AG RO (DE) RO AT CH CZ DE AT CH CZ DE LU NL SE SK AT CH CZ DE LU NL RO SE SK AT DE LU NL SE DE SE 18,932 Presence in HORNBACH regions 13,287 6,176 5,407 3,891 2,588 2,340 2,318 2,250 2,151 Adeo Kingfisher Tengelmann (OBI) Bauhaus HORNBACH Hagebau Rautakesko Bricomarché REWE (Toom/ B1) Stark Group Aki, Bricocenter, Bricoman, Bricomart, Dom Pro, Khane, Leroy Merlin, Weldom,, Zodio Bricodepot, B&Q, Castorama, Koctas, Kingfisher, Praktiker, Screwfix Hagebau, Cactus, Werkers Welt, Knauber, Leitermann Byggmakker, K- Rauta, Oma, Rautia, Senukai Toom, B1 Discount Beijer Byggmaterial, Neumann Bygg, STARK [Source: Dähne, HORNBACH] Page 22

23 Highly satisfied customers across Europe HORNBACH Baumarkt Subgroup #1/#2 Product range, selection, offering in Germany, Switzerland, Austria, Netherlands, Czech Republic, Sweden #1 Product quality in Germany, Switzerland, Netherlands, Sweden #1/#2 Pricing in Germany, Austria, Switzerland, Netherlands, Czech Republic #1/#2 Specialist advice in Germany, Switzerland, Netherlands, Czech Republic, Sweden Sources: Kundenmonitor Germany/Austria/Switzerland, GfK (Czech Republic), ING Retail Jaarprijs (Netherlands), Svenskt Kvalitetsindex/evimetrix (Sweden) (Statements based on studies in Germany, Switzerland, Austria, Netherlands, Czech Republic, Sweden. No information collected for Romania, Slovakia, Luxembourg) Page 23

24 Opportunities and Growth Drivers in the DIY Market HORNBACH Group Sustainability International expansion Consumer trends Increasing need for renovation and modernization (80% of houses/flats > 30 years) Homing (Consumers living trends) Energy efficiency (Lower lifecycle cost, CO 2 reduction) Online retailing (Growing share of DIY e-commerce, Omni-Channel and the death of pure play)) Barrier-free living (ageing of the population) New target groups (women, do-it-for-me, seniors) Page 24

25 Financial Year 2017/18 Page 25

26 Highlights of 2017/18 financial year HORNBACH Group Pleasing like-for-like sales growth %; international %, Germany % New store openings in The Hague and Halle Online shop launched in Slovakia, Sweden and Romania Further expansion in multichannel retail approach Consolidated operating earnings (EBIT) and consolidated net income both up on previous year Stable dividends Strong balance sheet with high equity ratio (54.8 %) Page 26

27 million Full Year 2017/18: Sales Growth HORNBACH Group 3, , , , % 4, % % 1820 Rounding differences +8.3% / / / / /18 Hornbach Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany] Page 27

28 EBIT* and adjusted EBIT HORNBACH Group HORNBACH Baumarkt Subgroup [Adjusted] EBIT margin [Adjusted] EBIT margin 4.0% [4.1%] 3.9% [4.0%] 2.6% [2.8%] 2.6% [2.8%] +2.8% % % +7.0% / /18 EBIT Bereinigtes EBIT 2016/ /18 EBIT Bereinigtes EBIT *based on International Financial Reporting Standards (IFRS) Page 28

29 Earnings before taxes and Group net income HORNBACH Holding Group HORNBACH Baumarkt Subgroup tax ratio 30.9% 27.2% tax ratio 33.3% 27.5% / / / /18 Earnings before taxes Group net income Earnings before taxes Group net income Page 29

30 million CAPEX 2017/18 HORNBACH Group HORNBACH Immobilien HORNBACH Baustoff Union HORNBACH Baumarkt Intangible assets Administration Existing stores New stores % 87 % 34 % 55 % 2016/ / / /18 Page 30 Olomouc

31 Group Balance Sheet Structure (IFRS) HORNBACH Group Total Assets 2,648 2,668 Total Equity and liabilities 2,668 2, Liquid funds 164 Inventories, accounts receivable and other assets Current liabilities Non-current liabilities 1,667 1,704 Non-current assets 1,463 Shareholders equity 1, % 52.8% February 28, 2017 February 28, 2018 February 28, 2018 February 28, 2017 rounding differences Page 31

32 Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt Subgroup Total Assets 1,960 1,998 Total Equity and liabilities 1,998 1, Liquid funds Current liabilities Inventories, accounts receivable and other assets Non-current liabilities 503 1,132 Non-current assets 1,173 Shareholders equity 1,049 1, % 51.6% February 28, 2017 February 28, 2018 February 28, 2018 February 28, 2017 rounding differences Page 32

33 3rd Quarter / 9 Months 2018/19 Page 33

34 Highlights Q3 2018/19 HORNBACH Group Group sales in Q3 +7.7% Strongest quarterly sales growth for 4 ½ years Interconnected Retail Sales +31% in Q3 Like-for-like sales growth in Q3 (DIY) +6.2 % Germany +4.4 % International +8.2 % Store opening in Boras (Sweden) Adjusted EBIT fall short of previous year s figures Gross margin down by 60 bps Higher cost base mainly triggered by digitization Full year revenue outlook confirmed earnings outlook adjusted (10 Dec 2018) CAPEX outlook for the Group readjusted for FY 2018/19: m Page 34

35 million Sales Growth 9 Months HORNBACH Group 2,851 1,561 2,980 1,597 3,155 1,633 3,318 1, % +1.8% 3,476 1,688 1,109 1,200 1,331 1, % 1,568 Rounding differences / / / / /19 Hornbach Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany] 5.5% Page 35

36 Like-for-like Sales* HORNBACH Baumarkt Subgroup FY 2017/18 Q /19 Q /19 H /19 Q /19 9 M 2018/19 Total Previous year Germany Previous year International Previous year * In constant currencies Page 36

37 million Adjusted EBIT HORNBACH Group % M 2018/19 - Segments HBM: HBU: HI: HORNBACH Baumarkt Subgroup HORNBACH Baustoff Union Subgroup HORNBACH Immobilien Subgroup 2017/ / / / / / /19 HBM HBU HI Rounding differences Q1 Q2 Q3 Page 37

38 million Adjusted EBIT HORNBACH Baumarkt Subgroup -12.6% 9M 2018/19 - Segments / / / / / / /19 Rounding differences Q1 Q2 Q3 Retail Real estate Page 38

39 million EBIT adjusted HORNBACH Group 9M 2017/18 9M 2018/19 9M 2017/18 9M 2018/19 EBIT % % Non-operating Earnings Non-operating Expenses EBIT adjusted % % rounding differences Page 39

40 Gross Margin HORNBACH Holding 9M HORNBACH Holding FY HORNBACH Baumarkt 9M HORNBACH Baumarkt FY / / / / /19 Page 40

41 million Earnings before Taxes HORNBACH Group HORNBACH Baumarkt Subgroup 9 Months % - 9.7% 9 Months % + 1.6% % % + 7.0% -78.1% 21,1 16,1 6,3 1,4 Q 1 Q 2 Q3 2017/ /19 Q 1 Q 2 Q3 2017/ /19 Page 41

42 million Net Income (before Minority Interests) HORNBACH Group HORNBACH Baumarkt Subgroup 9 Months % -10.5% 9 Months % +1.2% -25.2% -18.0% +6.5% -78.6% 15,8 11,8 4,8 1,0 Q 1 Q 2 Q3 2017/ /19 Q 1 Q 2 Q3 2017/ /19 Page 42

43 Earnings per Share HORNBACH Holding 9M HORNBACH Baumarkt Subgroup 9M Hornbach Holding FY Hornbach Baumarkt Subgroup FY Months Full Year / / / / /19 Page 43

44 million Cash Flow Statement 9 Months HORNBACH Group HORNBACH Baumarkt Subgroup 9M 2017/18 9M 2018/19 9M 2017/18 9M 2018/19 Cash flow from operating activities 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 Capital expenditure 9 Months HORNBACH Group Incl. repurchase of two stores and acquisition of land in Switzerland and other regions / / / / /19 sonstige HORNBACH Immobilien AG HORNBACH Baumarkt AG Page 45

46 Group Balance Sheet Structure (IFRS) HORNBACH Group Total Assets 2,668 2,840 Total Equity and liabilities 2,840 2, Liquid funds Inventories, accounts receivable and other assets Current liabilities Non-current liabilities ,704 1,774 Non-current assets 1,557 Shareholders equity 1, % 54.8% February 28, 2018 November 30, 2018 November 30, 2018 February 28, 2018 Rounding differences Page 46

47 Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt Subgroup Total Assets 1,998 2,160 Total Equity and liabilities 2,160 1, Liquid funds Inventories, accounts receivable and other assets Current liabilities Non-current liabilities ,173 Non-current assets 1,256 Shareholders equity 1,122 1, % 52.5% February 28, 2018 November 30, 2018 November 30, 2018 February 28, 2018 Rounding differences Page 47

48 Employees* HORNBACH Group HORNBACH Group HORNBACH Baumarkt Subgroup 19,614 20,554 18,721 19,615 8,234 8,660 8,201 8,627 11,380 11,894 10,520 10,988 February 28, 2018 November 30, 2018 February 28, 2018 November 30, 2018 Germany International Germany International * incl. passive employees Page 48

49 Outlook FY 2018/19 Page 49

50 New Store Openings and Outlook 2018/19 Sales and earnings forecast HORNBACH Group for FY 2018/19 Zwolle (Q1 - opened) Boras (Q3 - opened) Sales 2018/19 HORNBACH Group HORNBACH Baumarkt Subgroup Sales to increase in a medium single-digit percentage range Sales 2017/18 4,141 million 3,891 million Affoltern (Q1 - opened) Adjusted EBIT 2018/19 Adjusted EBIT 2017/18 More than 10% below previous year s level (before: roughly on previous year s level) 166 million 110 milion Capex 2018/19* million million Capex 2017/ million 129 million * incl. repurchase of 2 stores in 2018/19 Initially planned CAPEX (before repurchase): million (Baumarkt Subgroup) and million (Group) Page 50

51 Financial Calendar 2018/19 HORNBACH Group December 20, 2018 Financial Update: 3rd Quarter of 2018/19 as of November 30, 2018 March 21, 2019 Trading Statement May 27, 2019 Annual Report 2018/19 DVFA Analysts Conference HORNBACH Baumarkt 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 51