HORNBACH Factbook Q3 / 9M + Trading Statement 2016/2017

Transcription

1 HORNBACH Factbook Q3 / 9M + Trading Statement 2016/2017 Page 1

2 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 2

3 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 HORNBACH Baumarkt AG³ Bornheim Listed Ordinary Shares² (ISIN DE ) Neustadt/Weinstraße Listed Ordinary Shares 1 (ISIN DE ) c 76.4% 100% 100% HORNBACH Immobilien AG 3 Bornheim Not listed HORNBACH Baustoff Union GmbH 3 Neustadt/Weinstraße Not listed (General Partner) Management 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 3

4 Group Structure HORNBACH Group Neustadt/Weinstrasse February 28, % 76.4% 100% Property Development within HORNBACH Group 155 DIY and garden stores 1.8 million sqm sales area in 9 countries Germany (98) Austria (14), Netherlands (12), Czech Republic (10), Luxembourg (1), Switzerland (6), Sweden (5), Slovakia (3), Romania (6) 27 Outlets Builders merchant business South-West Germany (25) France (2) Page 4

5 Network HORNBACH Group Germany 98 stores 1,048,900 sqm 25 x 2 x February 28, DIY stores in 9 countries sales area: 1.8 million sqm store size: Ø 11,600 sqm Austria 14 stores 168,600 sqm Czech Republic 10 stores 139,800 sqm Romania 6 stores 86,600 sqm Slovakia 3 stores 46,300 sqm Luxembourg 1 store 12,100 sqm Sweden 5 stores 73,100 sqm Netherlands 12 stores 152,300 sqm Switzerland 6 stores 78,000 sqm Page 5

6 /199 /199 /199 /199 /199 /199 /199 /199 /199 /199 /200 /200 /200 /200 /200 /200 /200 /200 /200 /200 /201 /201 /201 /201 /201 /201 / /198 /201 8 /198 Sales Growth HORNBACH Group 3.94 bn 132 m Page 6

7 Expansion HORNBACH Baumarkt AG 4000 Germany FY 2016/2017: RO International 3.71 bn SK SE 3500 CH Net Sales in million A NL L 45% CZ % 55% 65% Page 7

8 Jobmachine HORNBACH-Gruppe 17,738 12,156 7,386 4,562 1, / / / / /2017 Page 8

9 Market Position Strategy Growth Opportunities Page 9

10 Top 6 Ranking (2015): German DIY Retailers HORNBACH Baumarkt AG 5,623 5,230 Net Sales (Europe): HORNBACH ranks #3 3,535 2,462 2,277 Net Sales in million 1,410 OBI Bauhaus HORNBACH ZEUS/Hagebau but is #1 in sales per store ( million) ,023 1,709 1, Bauhaus Globus/Hela and sales per sqm ( ) OBI Toom HORNBACH Zeus/Hagebau 1,201 1,114 1,049 Zeus/Hagebau Toom 6.7 Toom Globus/Hela OBI Bauhaus HORNBACH Globus/Hela [Source: Dähne, Company information] Page 10

11 Top 10 Ranking (2015): European DIY Retailers HORNBACH Baumarkt AG 15,306 Net Sales in million 14,257 5,762 5,231 3,535 Groupe Adeo Kingfisher OBI Bauhaus Hornbach 3,209 Kesko 2,469 2,440 2,277 1,988 DT Group Zeus/Hagebau Toom Bricomarché [Source: Dähne, Company information] Page 11

12 Average store size, net sales and sales densities (2015): HORNBACH Baumarkt AG 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 Like-for-like Sales in Germany HORNBACH Baumarkt AG % DIY-Sector (D) HORNBACH (D) 1998 = 100% % e [Source: BHB, HORNBACH] Page 13

14 Market Share (Germany) HORNBACH Baumarkt AG in % of DIY store sales e [Source: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (from 2014), HORNBACH] Page 14

15 Strategy HORNBACH Baumarkt AG 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 We re a Project DIY Store HORNBACH Baumarkt AG 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. Every-Day-Low-Price. Page 16

17 Customers across Europe honor HORNBACH s concept HORNBACH Baumarkt AG Page 17

18 Store Formats HORNBACH Baumarkt AG 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 Store Type Selling Space CapEx 1) (BHB weighted) HORNBACH4 HORNBACH5 HORNBACH6 HORNBACH Typ 2 1) 2) 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 Type 2 ( HORNBACH Compact ) 2) ~ 800 sqm ~ 2 m average CapEx for property and building currently in trial phase Page 18

19 Property Ownership and Hidden Reserves HORNBACH Group No. of stores Sales area in % Property HI Property HBM Operating Leases Finance Lease Misc. Febraury 29, Most recent DIY property transactions 2016/2017 8% 2% 44 Rental Multiplier: x21 (December 2016) 29% 34% 53 27% 41 FY 15/16 ( million) Book value Yield value (x13) Hidden Reserves (x13) Baumarkt Subgroup Immobilien Subgroup HORNBACH Group 991 1, Rental Multiplier: x16,5 (January 2017) Page 19

20 Online share of DIY retail market (Deutschland) HORNBACH Baumarkt AG Online share of DIY retail market (Germany) In 2014, online retail accounted for around 5% of DIY sales in Germany. Industry experts expect e-commerce to account for 25% of sales by % 5.0% e [Source: IFH, BHB, Roland Berger] Page 20

21 Sustainable Multichannel Strategy HORNBACH Baumarkt AG Since launching its webshop in December 2010, HORNBACH has Germany s most extensive online range of construction and renovation products. 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 International roll-out Page 21

22 Going Live Road-Map HORNBACH Baumarkt AG Country Start of Online Shop Number of SKUs (January 2017) Germany December ,000 Austria January ,000 Switzerland November ,000 Netherlands March ,000 Czech Republic December ,000 Luxembourg December ,000 Romania / Slovakia / Sweden scheduled for 2017/2018 Advantages of stationary retail Advantages of online retail Page 22

23 Elaborated Supply Chain Management Ensures Europe-wide Logistics (B2B) Sophisticated merchandise management in conjunction with our homogeneous store network Our logistics system combines direct supplies to stores and indirect deliveries via logistics centers Enhanced import possibilities Group-wide integrated IT and merchandise systems Page 23

24 B2B Logistics HORNBACH Baumarkt AG Lehrte (1994) Soltau (2012) Berlin (2015) Castrop-Rauxel (2015) Nürnberg (2015) Lorsch (2015) Essingen (1999) Vilshofen (2005) Page 24

25 B2C Logistics HORNBACH Baumarkt AG Pure online business: 3 ways to customers Store as e-commerce service partner Home delivery service Reserve & collect at store Direct shipment supplier 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 HORNBACH Baumarkt AG Benefits of private labels Private labels share of sales* USP compared with competitors. 35% Lower dependency on national manufacturer brands. 30% Exclusive control over market launch and market positioning. 20% Active management of product lifecycle. Significantly higher gross margins! Successful way to counter downward price pressure from internet! 30.0% 25% 18.9% 15.0% 15% 10% 8.2% 10.3% 05% 00% * year-end figure Page 26

27 Growth Drivers HORNBACH Group Cocooning New target groups (retreat-to-home lifestyle trend) ( women-at-work, Do-it-for-me, seniors) Increasing need for renovation Multichannel 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 Page 27

28 SALES Financial Year 2016/2017 Page 28

29 Sustainable Sales Growth (1) HORNBACH Group 3,369 3,229 1,966 3,755 2, % 1,670 1,524 1,279 1,325 1, / / / / /17 HORNBACH Baustoff Union +4.9% 2,040 1,827 1,741 million 3,572 3, % HORNBACH Baumarkt AG [International] +4.8% HORNBACH Baumarkt AG [Germany] dounding differences Page 29

30 Sustainable Sales Growth (2) HORNBACH Group HORNBACH Group HORNBACH Baumarkt Subgroup / / % +6.8% +4.7% +1.3% +6.4% +7.0% +4.4% +1.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Page 30

31 Like-for-like Sales* HORNBACH Baumarkt AG Subgroup 2015/16 Germany + 1,4% + 3.0% 1021 Total 978 International + 5.1% million 2016/ % + 4.5% + 3.0% (0.7)% Q1 Q2 Q3 Q4 * in constant currencies Page 31

32 Like-for-like Sales HORNBACH Baumarkt AG Subgroup 2015/ / % million Germany % + 2.2% + 2.2% (2.3)% Q1 Q2 Q3 Q4 Page 32

33 Like-for-like Sales* HORNBACH Baumarkt AG Subgroup 2015/ / % million International % + 7.7% + 3.9% + 1.3% Q1 Q2 Q3 Q4 * in constant currencies Page 33

34 3rd Quarter / 9 months 2016/2017 Page 34

35 Highlights 9 months 2016/2017 HORNBACH Group DIY store openings in Prag, Innsbruck, closing Mannheim new HBU branch Group sales up 5.9% to approx. 3.2 bn Like-for-like sales growth (DIY) of 4.0% Germany +2.4% Other European countries +6.1% Earnings figures to exceed previous year s level in nine-month period Gross margin -60 bp to 36.3% Store expense ratio decreased (-50 bp to 26.0%) Pre-opening expenses significantly down on previous year (ratio -20 bp auf 0,1%) Higher administration expense ratio due to ICR (+10 bp auf 4.6%) EBIT cumulatively +5.7% to Mio. Swap of operating leases into finance leases reflects a positive EBIT effect, but higher interest expenses Negative currency items (YoY chg m) EPS after 9M at 6,06 (previous year: 5,94 ) Page 35

36 Growth in net sales nine months HORNBACH Group 2,607 2,682 1,395 1,443 2,851 million 1,561 2,980 3,155 1,633 1, % 1,200 1,331 1,033 1,058 1, / / / / /17 HORNBACH Baustoff Union +5.9% +10.9% HORNBACH Baumarkt AG [International] +4.6% HORNBACH Baumarkt AG [Germany] [rounding differences] Page 36

37 Growth in Net Sales Q1 / Q2 / Q3 HORNBACH Group HORNBACH Holding Group 1, , , , /16 million 2016/ % + 6.8% Q1 Q2 HORNBACH Baumarkt Subgroup , % Q3 HORNBACH Baustoff Union Subgroup 1, % Q % Q % + 0.8% + 4.1% + 8.4% Q3 Q1 Q2 Q3 Page 37

38 Like-for-like Sales* HORNBACH Baumarkt AG Subgroup Q4 Q3 9M FY Q1 Q2 H1 2015/ / / / / / /17 Total previous year (1.1) Germany , previous year (2.4) (0.2) 0.4 International previous year * in constant currencies Page 38

39 In % of net sales Gross Margin nine months HORNBACH Group / /14 HORNBACH Holding Group / / /17 HORNBACH Baumarkt Subgroup Page 39

40 EBIT HORNBACH Group nine months + 5.7% 2015/2016 million 2016/ ,3% % Q / / % 21.3 Q Q3 based on International Financial Reporting Standards (IFRS) Page 40

41 EBIT Breakdown nine months HORNBACH Group 2015/ / % million % % 8.3 HBM 8.7 HBU HI HBM: HORNBACH Baumarkt Subgroup HBU: HORNBACH Baustoff Union Subgroup HI: HORNBACH Immobilien Subgroup Page 41

42 Net Income nine months million HORNBACH Holding Group / % HORNBACH Baumarkt Subgroup / / /2017 Page 42

43 Earnings per Share nine months HORNBACH Group / / / / /17 HORNBACH Holding Group* HORNBACH Baumarkt Subgroup *until FY 2014/2015 average earnings per share Page 43

44 Cash Flow Statement HORNBACH Group Cash flow statement (abridged) 2016/ /2016 million 9 months 9 months Cash flow from operating activities of which: funds from operations of which: change in working capital Cash flow from investing activities (184.5) (118.3) Cash flow from financing activities (137.0) (33.1) Cash-effective change in cash and cash equivalents (98.1) 43.7 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 HORNBACH Baumarkt AG Cash flow statement (abridged) million Cash flow from operating activities 2016/ /16 9 months 9 months of which: funds from operations of which: change in working capital Cash flow from investing activities (161.8) (108.6) Cash flow from financing activities (101.0) (13.0) Cash-effective change in cash and cash equivalents (86.6) 47.3 Change in cash and cash equivalents due to changes in exchange rates 0.0 (0.1) Cash and cash equivalents at March Cash and cash equivalents at November rounding differences Page 45

46 Group Balance Sheet Structure (IFRS) HORNBACH Holding ASSETS Total assets 2,704 Liquid funds 252 2, million EQUITY and LIABILITIES 2, Inventories, accounts receivable and other assets 801 Non-current assets 1, Total assets 2,680 Current liabilities Non-current liabilities 1,421 Shareholders equity 52.6% February 29, 2016 November 30, 2016 November 30, , % February 29, 2016 rounding differences Page 46

47 Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt AG ASSETS 1,986 million ,039 EQUITY and LIABILITIES Total assets 2,014 Liquid funds 196 Inventories, accounts receivable and other assets 707 Non-current assets 1,111 2,014 Total assets 466 Current liabilities 507 Non-current liabilities 494 1,041 Shareholders equity % February 29, 2016 November 30, ,986 November 30, % February 29, 2016 Rundungsdifferenzen Page 47

48 Capital Expenditures nine months HORNBACH Group /13 others 2013/ / / /17 HORNBACH Immobilien Subgroup HORNBACH Baumarkt Subgroup Olomouc Page 48

49 Employees HORNBACH Group 17,373 7,034 17,740 7,261 International Germany 10,339 10,479 February 29, 2016 November 30, 2016 Page 49

50 Outlook Page 50

51 New Store Openings and Outlook 2016/2017 HORNBACH Group HBM HBU Amsterdam Innsbruck Amsterdam-Sloterdijk Mannheim-Käfertal store closed 27th outlet opened (Q2) Prag-Chuchle Sales and earnings forecast for FY 2016/2017 unchanged: Sales to increase in a medium single-digit percentage range EBIT FC: HH -> adjusted EBIT 15/16 (151 m) HBM -> ~ adjusted EBIT 15/16 (99 m) Prag-Chuchle Innsbruck Page 51

52 Financial Calender 2017 Contact Disclaimer HORNBACH Group May 29, 2017 Annual Press Conference 2016/2017 Publication Annual Report 2016/2017 DVFA Analysts Conference HORNBACH Baumarkt June 30, 2017 Financial Update: 1st Quarter of 2017/2018 July 6, 2017 Annual General Meeting HORNBACH Baumarkt July 7, 2017 Annual General Meeting HORNBACH Holding September 28, 2017 Half-Year Financial Report 2017/2018 DVFA Analysts Conference HORNBACH Holding December 21, 2017 Financial Update: 3rd Quarter of 2017/2018 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 52