DFVA Analyst Meeting 2017 HORNBACH Holding AG & Co. KGaA September 28, 2017 Frankfurt/Main Page 1
Financial Year 2017/2018 1st Half/2nd Quarter (March August 2017) Page 2
since March 28, 2017 Shareholder Structure HORNBACH Group Free Float HORNBACH Familien Treuhand GmbH 100% 62.5% 37.5% HORNBACH Management AG Free Float HORNBACH Holding AG & Co. KGaA Neustadt/Weinstraße Listed Ordinary Shares 1 (ISIN DE0006083405) c (General Partner) Management 23.6% 76.4% 100% 100% HORNBACH Baumarkt AG³ Bornheim Listed Ordinary Shares² (ISIN DE0006084403) 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 3
August 31, 2017 Group Structure HORNBACH Group Neustadt/Weinstrasse 100% 76.4% 100% Property Development within HORNBACH Group 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) 27 Outlets Builders merchant business South-West Germany (25) France (2) Page 4
August 2017 Network HORNBACH Group Germany 98 stores 1,049,000 sqm 25 x x 2 x 156 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 5
Sales Figures 1st Half / 2nd Quarter Page 6
million Growth in Net Sales six months HORNBACH Group 1,831 986 1,976 1,084 2,055 1,116 2,187 1,143 2,310 1,166 +5.7% +2.0% 727 771 817 920 1,007 +9.5% 117 120 120 123 136 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 +10.4% HORNBACH Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany] [rounding differences] Page 7
million Growth in Net Sales Q1 and Q2 HORNBACH Group HORNBACH Holding Group 1,195.5 1,116.1 1,070.5 1,114.8 2016/2017 2017/2018 + 7.1% + 4.1% Q 1 Q 2 HORNBACH Baumarkt Subgroup HORNBACH Baustoff Union Subgroup 1,058.9 1,130.3 1,003.6 1,042.7 56.8 64.6 66.5 71.4 + 6.7% + 3.9% + 13.8% + 7.5% Q 1 Q 2 Q 1 Q 2 Page 8
Sales Share International - August 31 HORNBACH Baumarkt Subgroup 38% Germany 42% Germany 46% Germany 2007/2008 2012/2013 2017/2018 Page 9
Like-for-like Sales* Germany + 2.1% + 4.0% International + 6.4% 2016/2017 2017/2018 1051 1.108 Total 999 1.025 + 5.4% + 2.6% Q 1 Q 2 * in constant currencies Page 10
Like-for-like Sales + 2.1% 2016/2017 2017/2018 Germany 585 607 546 547 + 3.8% + 0.3% Q 1 Q 2 Page 11
Like-for-like Sales* + 6.4% 2016/2017 2017/2018 International 501 466 453 477 + 7.5% + 5.3% Q 1 Q 2 * in constant currencies Page 12
Financial Figures 1st Half / 2nd Quarter Page 13
EBITDA HORNBACH Group 2016/2017 2017/2018 six months + 13.3% 117.2 99.5 99.3 108.0 198.8 225.2 + 17.8% + 8.7% Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) Page 14
EBITDA HORNBACH Baumarkt Subgroup six months 2016/2017 2017/2018 + 15.9% 97.1 79.7 76.4 83.8 156.1 181.0 + 21.9% + 9.7% Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) Page 15
EBIT HORNBACH Group 2016/2017 2017/2018 six months + 15.2% 92.7 76.5 76.0 83.1 + 21.2% + 9.3% 152.5 175.8 Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) Page 16
EBIT Breakdown six months + 18.5% 141.6 2016/2017 2017/2018 119.5-1.6% 5.8 5.7 + 1.7% 29.6 30.1 HBM HBU HI HBM: HORNBACH Baumarkt Subgroup HBU: HORNBACH Baustoff Union Subgroup HI: HORNBACH Immobilien Subgroup Page 17
EBIT Breakdown six months 2016/2017 2017/2018 86.0 103.1 66.6 72.7 Germany International Page 18
EBIT Breakdown six months HORNBACH Group 2016/2017 2017/2018 +15.2% EBIT 152.5 175.8 Non-operating Earnings (0.6) (1.5) Non-operating Expenses 0.0 0.0 EBIT adjusted I 151.9 +14.8% 174.3 ICR costs +26.3 +30.4 EBIT adjusted II 178.2 +14.9% 204.7 Page 19
Earnings before Taxes HORNBACH Group 2016/2017 2017/2018 six months + 17.8% 85.9 68.4 68.8 75.7 137.2 161.6 + 25.6% + 10.1% Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) based on International Financial Reporting Standards (IFRS) Page 20
Earnings before Taxes HORNBACH Baumarkt Subgroup six months 2016/2017 2017/2018 + 20.9% 73.0 55.6 52.9 58.2 108.6 131.3 + 31.3% + 10.0% Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) Page 21
Net Income before Minority Interest HORNBACH Group 2016/2017 2017/2018 six months + 17.5% 63.9 50.9 50.9 55.9 101.8 119.7 + 25.3% + 9.7% Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) Page 22
Net Income HORNBACH Baumarkt Subgroup 2016/2017 2017/2018 six months + 20.3% 54.8 41.9 39.6 43.2 81.5 98.0 + 30.9% + 9.1% Q1 Q2 2016/2017 2017/2018 based on International Financial Reporting Standards (IFRS) Page 23
Gross Margin six months HORNBACH Group 38.1 38.0 37.4 36.6 37.4 37.3 37.2 37.4 36.5 36.7 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 HORNBACH Holding Group HORNBACH Baumarkt Subgroup Page 24
Earnings per Share six months HORNBACH Group 4.38 4.93 5.22 5.16 6.03 2.16 2.84 3.08 2.54 2.56 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 HORNBACH Holding Group* *until FY 2014/2015 average earnings per share HORNBACH Baumarkt Subgroup Page 25
Highlights in the First Half 2017/2018 HORNBACH Group Pleasing like-for-like sales growth Germany +2.1% International +6.4 % Total Like-for-like +4.0 % Store opening in Den Hague (Netherlands), Halle (Germany) scheduled for October, Closing in Hanau (Germany) until December 2017 Gross margin slightly above previous year Store expense ratio below previous year Administrative overhead costs above previous year due to ongoing digitalization EBIT +15.2 %, forecast unchanged Page 26
Cash Flow Statement HORNBACH Group Cash flow statement (abridged) 2017/2018 2016/2017 million 1. Half 1. Half Cash flow from operating activities 155.0 198.1 of which: funds from operations 169.7 152.5 of which: change in working capital -14.7 45.6 Cash flow from investing activities -42.4-141.5 Cash flow from financing activities -80.0-137.3 Cash-effective change in cash and cash equivalents 32.6-80.7 Change in cash and cash equivalents due to changes in exchange rates -1.0-0.1 Cash and cash equivalents at March 1 190.1 349.7 Cash and cash equivalents at August 31 221.7 268.9 rounding differences Page 27
Cash Flow Statement HORNBACH Baumarkt Subgroup Cash flow statement (abridged) 2017/2018 2016/2017 million 1. Half 1. Half Cash flow from operating activities 136.8 169.1 of which: funds from operations 140.3 122.2 of which: change in working capital -3.6 46.9 Cash flow from investing activities -38.7-122.3 Cash flow from financing activities -38.6-103.1 Cash-effective change in cash and cash equivalents 59.4-56.2 Change in cash and cash equivalents due to changes in exchange rates -0.9-0.1 Cash and cash equivalents at March 1 113.0 283.0 Cash and cash equivalents at August 31 171.6 226.7 rounding differences Page 28
Group Balance Sheet Structure (IFRS) HORNBACH Group ASSETS 2,648 2,693 Total assets 2,693 EQUITY and LIABILITIES Total assets 2,648 190 Liquid funds 222 502 Current liabilities 526 Inventories, accounts receivable and other assets 791 802 706 Non-current liabilities 724 1,667 Non-current assets 1,669 Shareholders equity 1,484 1,398 55.1% 52.8% February 28, 2017 August 31, 2017 August 31, 2017 February 28, 2017 rounding differences Page 29
Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt Subgroup ASSETS 1,960 2,020 Total assets 2,020 EQUITY and LIABILITIES Total assets 1,960 113 172 Liquid funds 441 Current liabilities 446 Inventories, accounts receivable and other assets 715 714 497 Non-current liabilities 503 1,132 1,134 Non-current assets 1,083 Shareholders equity 1,011 53.6% 51.6% February 28, 2017 August 31, 2017 August 31, 2017 February 28, 2017 rounding differences Page 30
Capital Expenditures six months HORNBACH Group 83 84 64 54 57 35 74 73 26 43 9 3 50 11 7 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 others HORNBACH Immobilien Subgroup HORNBACH Baumarkt Subgroup Page 31 Olomouc
Employees HORNBACH Group 18,835 19,292 7,693 7,993 International Germany 11,142 11,299 February 28, 2017 August 31, 2017 Page 32
Outlook Page 33
Sales Forecast Financial 2017/2018 3,229 HORNBACH Holding Group 3,755 3,572 3,369 3,941 3,020 HORNBACH Baumarkt Subgroup?? 3,152 3,357 3,535 3,710 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 FC 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18FC Page 34
EBIT Forecast Financial Year 2017/2018 HORNBACH Holding Group HORNBACH Baumarkt Subgroup 146 160 165 138? 157 99 105 110 90? 98 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 FC 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 FC Page 35
Store Openings 2017/2018 Den Haag Den Haag Halle (Q3) + Closing Hanau (Q3) Halle Page 36
Financial Calendar HORNBACH Group 2017 December 21, 2017 Financial Update : 3rd Quarter of 2017/2018 as of November 30, 2017 March 22, 2018 Trading Statement for the 2017/2018 Financial Year May 24, 2018 Publication of Annual Report 2017/2018 and DVFA Analysts Conference of HORNBACH Baumarkt AG Page 37
Disclaimer - Contact 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 38