Factbook Q1 2018/19

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 1 DIY retailer with three different business segments

. 157 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)

Status: May 31, 2018 . 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 FY 2017/18

6% HORNBACH Baumarkt AG [Germany]

50% HORNBACH Baumarkt AG 44% [International] Hornbach Baustoff Union GmbH

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 2 157 DIY megastores and garden centers across Europe

Q1 . 2 store openings in Zwolle (Netherlands) and Affoltern (Switzerland): +23,800 sqm 2018/19 . 1 store closed (HORNBACH compact) in Alzey (Germany): -1,200 sqm)

. sales area: Germany 1,8 million sqm 27 x 97 stores . store size: 1,051,200 sqm 2 x Ø 11,750 sqm Austria Romania 14 stores 6 stores Zwolle 168,900 sqm 86,400 sqm Mar 14, 2018 Czech Republic Slovakia Alzey, 10 stores 3 stores

Status: Mai 31, 2018 Apr 28, .2018 140,900 sqm 46,100 sqm

Affoltern Luxembourg Sweden May 26, 2018 1 store 5 stores 12,100 sqm 72,900 sqm

Netherlands Switzerland 14 stores 7 stores 176,500 sqm 90,000 sqm

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 3 Two publicly listed corporations

100% Hornbach Familien Free Float March 28, 2017 Treuhand GmbH

Since HORNBACH Management AG 62.5% 37.5% (General Partner) HORNBACH Holding AG & Co. KGaA

Free Float Neustadt/Weinstraße c Listed Ordinary Shares1) Management (ISIN DE0006083405)

23.6% 76.4% 100% 100%

HORNBACH Baumarkt AG3) HORNBACH HORNBACH Bornheim Immobilien AG3) Baustoff Union Listed Ordinary Shares²) Bornheim GmbH3) (ISIN DE0006084403) Not listed 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

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 4 Our Key Success Factors

Publicly listed family company Organic growth above sector average Focus on B2C and B2B clients with large DIY projects Highest productivity per sqm in the German DIY sector Consistent interconnected retail strategy Leading in DIY online retail Own brands with added value High customer satisfaction Own real estate portfolio and across Europe efficient logistics network

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 5 From a small craftsman business to a European DIY Group

Roll-out international online shops Austria (2013), Switzerland (2014), Netherlands, Czech Republic, 2013- Luxemburg (2015), Slowakia, Sweden (2017), Romania (2018) 2018 Change in legal form of HORNBACH Holding AG in „KGaA“ 2015

Emission Eurobond (3,875%) 2013 Start online shop Germany 2010 1st DIY store with drive-through 1996- 2003 2007 Going public HORNBACH Baumarkt AG Expansion Austria (1996), Netherlands (1997), Czech 1993 Republic (1998), Switzerland (2002), Sweden (2003), Slowakia Going public HORNBACH Holding AG 1987 (2004), Romania (2007)

1980 1st DIY megastore Karlsruhe 1968 1st DIY store with garden center Bornheim 1877 Foundation of handicraft business

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 6 Project DIY store for DIY fans and professionals

. Broad and deep product range . More than 50,000 articles stocked in sufficient Key focus on project customers quantities at store tackling major DIY projects . Extended product range at online shop

. Permanent low prices rather than discount campaigns . Price leadership online and at stores . 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

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 7 Consistent multichannel strategy

. Online shop as catalyst for permanent low price Every day low price strategy and price perceptions Online and in the store . Shop with or without contact to store: . Reserve & 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.

. International rollout of online shop in all countries where HORNBACH operates

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 8 Private labels offer added value

. Private labels differentiate us from competitors Share of sales planned to grow from and help boost customer retention 23.4% (2017/18) to 30% . Lower dependence on manufacturers’ brands in terms of innovations 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

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 9 Property ownership and hidden reserves

28, 2018 No. of stores Sales area in % Hidden reserves in real estate assets* February

2% FY 2017/18 Book Yield Hidden

Status: 4 8% 11 (€ million) value value reserves 43 28% (x13) (x13)

53 33%

Baumarkt 611 917 306 45 29% Subgroup

Property HI Property HBM Immobilien 418 793 375 Operating Leases Finance Lease Subgroup Others HORNBACH Group 1,029 1,710 681

*based on our own assumptions and calculations

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 10 Investment in prime locations

. Focus on big catchment areas . Large store format: 85% of stores > 10.000 sqm . Homogeneous store network: Economies of scale in store operation and store development . Meets customers needs and provides superior shopping experience

Selling Space CapEx1) (BHB weighted)

HORNBACH 4 8,500 – 10,999 sqm 15 – 20 € million incl. drive through

HORNBACH 5 11,000 – 14,999 sqm 20 – 25 € million

HORNBACH 6 ≥ 15.000 sqm 25 – 30 € million incl. drive through

1) average CapEx for property and building Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 11 Logistics network for store deliveries

. Soltau (56,000 sqm) 2012 Central WH . 8 logistics sites 2017 Extension . 150,000 storage spaces . Lehrte (55,000 sqm) 1994 Regional WH . 215,000 sqm warehouse space 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

. Enzersdorf a/d Fischa (5,200 sqm) 2018 Cross-docking bulk

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 12 Logistics to customers HORNBACH Baumarkt Subgroup

The store as a partner for e-commerce Online sales: 3 delivery options

Direct delivery

DV . Click and Collect in store Supplier

Fulfillment Partner

FulfillmentHORNBACH Centre DVZ

Pick-up store Delivery

HORNBACH Delivery Center . Pick-up of online orders in store

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 13 Sustainable success

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 14 Organic Growth HORNBACH Group

FY 1987/88: FY 2017/18: 613 employees . 19,614 employees* € 132 million net sales . € 4.14 bn net sales (CAGR ~12% / 30 years) 6%

44%

50%

HORNBACH Baumarkt [Germany] HORNBACH Baumarkt [International] Hornbach Baustoff Union * incl. passive employees Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 15 Volume of the German Core DIY Market in 2017 (total sales including online sales)

online total: ~ 1.2 € billion

7.1 thereof online: ~ 230 € million billion 16.2 in€

sales 45.7 thereof online:

Gross ~ 360 € million 22.4 thereof online: ~ 600 € million

DIY stores Specialist retailers Small scale formats Total DIY core market

[Source: BHB, GfK, IFH , Teipel Retail & Consulting, HORNBACH]

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 16 Performance and market share in Germany HORNBACH Baumarkt Subgroup

1998: 2017:

5% Market share in Germany 11% Market share in Germany

+36%

DIY sector (GER) HORNBACH (GER) Like-for-like sales growth in Germany 1998 = 100% 1998 = 100%

-11%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 17 HORNBACH ranks #3 among German DIY Retailers (2017) HORNBACH Baumarkt AG

6,211 5,452 … but growth faster than its competitors

3,891

2,610 2,270

in% 1,471 +1.4% +1.4% +4.9% +2.9% +1.5% +0.1% growth ; OBI Bauhaus HORNBACH ZEUS/Hagebau Toom/B1 Globus/Hela million … and is #1 in sales per store (€ million) … and sales per sqm (€)

24.9 2,135 (Europe) in € 1,857 20.0 1,698 sales 16.2 1,274 1,108 Net 1,053 9.5 6.9 4.8

OBI Bauhaus HORNBACH Zeus/Hagebau Toom/B1 Globus/Hela OBI Bauhaus HORNBACH Zeus/Hagebau Toom/B1 Globus/Hela

[Source: Dähne, HORNBACH]

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 18 Average store size, net sales and sales densities (2017): HORNBACH Baumarkt Subgroup

Bubble size = Net sales (Europe)

14000 OBI 12000 Megastore Bauhaus 10000 HORNBACH

8000 Toom average store size (in sqm) 6000 Globus/Hela Zeus/Hagebau 4000 Eurobaustoff 2000 EMV-Profi

0 Hellweg 750 1000 1250 1500 1750 2000 2250 Net sales / sqm

[Source: Dähne, HORNBACH]

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 19 DIY multichannel retail in all regions HORNBACH Baumarkt Subgroup

28, 2018 DIY multichannel retail is based on three pillars:

. Direct delivery (no store contact) . Order/ delivery via store Status: April . Click & Collect (C&C) Netherlands since March 2015 70,000 items

Czech Republic Slovakia since December 2015 since August 2017 44,000 items 32,000 items

Germany Austria Switzerland Luxemburg (only C&C) Sweden Romania since December 2010 since January 2013 since November 2014 since December 2015 since October 2017 since January 2018 157,000 items 113,000 items 113,000 items 97,000 items 30,000 items 34,000 items

2010 2013 2014 2015 2017 2018

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 20 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)

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 21 Opportunities and Growth Drivers in the DIY Market HORNBACH Group

Sustainability International expansion Consumer trends

Increasing need for renovation and Homing modernization (Consumers‘ living trends) (80% of houses/flats > 30 years)

Energy efficiency Online retailing (Growing share of DIY e-commerce, (Lower lifecycle cost, CO2 reduction) Omni-Channel and the death of pure play))

Barrier-free living New target groups

(ageing of the population) (women, do-it-for-me, seniors)

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 22 Financial Year 2017/18

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 23 Highlights of 2017/18 financial year HORNBACH Group

. Pleasing like-for-like sales growth + 3.6 %; international + 6.1 %, Germany + 1.5 % . 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 %)

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 24 Sustainable Sales Growth HORNBACH Group

+5.1% 4,141 3,941 3,755 3,572 2071 3,369 2040 2011 1966 1827

+1.5%

million 1820

€ 1670 1524 1325 1390 +9.0%

+8.3% 216 213 218 229 248 2013/14 2014/15 2015/16 2016/17 2017/18

Hornbach Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany] Rounding differences

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 25 Like-for-like Sales* HORNBACH Baumarkt Subgroup

GJ Q 1 Q 2 H 1 Q 3 9 M GJ 2016/17 2017/18 2017/18 2017/18 2017/18 2017/18 2017/18

Total 3.0 5.4 2.6 4.0 2.7 3.6 3.6

Previous year 2.6 4.4 4.5 4.5 3.0 4.0 3.0

Germany 1.4 3.8 0.3 2.1 0.5 1.6 1.5

Previous year 0.8 2.7 2.2 2.5 2.2 2.4 1.4

International 5.1 7.5 5.3 6.4 5.4 6.1 6.1

Previous year 4.9 6.6 7.7 7.1 3.9 6.1 5.1

* In constant currencies

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 26 EBIT* and adjusted EBIT

HORNBACH Group HORNBACH Baumarkt Subgroup

EBIT EBIT margin 4.0% 3.9% margin 2.6% 2.6%

Adjusted 4.1% 4.0% Adjusted EBIT margin EBIT margin 2.8% 2.8%

165,6 156,8 159,8 161,2

110,0 102,8 102,5 97,5

+3,7% +7,0% +2,8% +5,1%

2016/17 2017/18 2016/17 2017/18

EBIT Adjusted EBIT EBIT Adjusted EBIT

*based on International Financial Reporting Standards (IFRS)

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 27 Earnings before taxes and Group net income

HORNBACH Holding Group HORNBACH Baumarkt Subgroup

Group net income Group net income in % of net sales 2.3% 2.3% in % of net sales 1.4% 1.5% tax ratio 30.9% 27.2% tax ratio 33.3% 27.5%

130 132 79 81 90 96 53 59

2016/17 2017/18 2016/17 2017/18

Earnings before taxes Group net income Earnings before taxes Group net income

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 28 CAPEX 2017/18 HORNBACH Group

HORNBACH Immobilien Intangible assets HORNBACH Baustoff Union Administration Existing stores HORNBACH Baumarkt New stores

179 179

148 148 million € 34 % 87 %

55 %

2016/17 2017/18 2016/17 2017/18

Olomouc Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 29 Group Balance Sheet Structure (IFRS) HORNBACH Group

Total Total Equity Assets 2,648 2,668 and liabilities 2,668 2,648

190 Liquid funds 164 512 Current liabilities 526

791 Inventories, accounts 800 receivable and other assets 693 Non-current liabilities 724

1,667 1,704 Non-current assets 1,463 Shareholders‘ equity 1,398

54.8% 52.8%

February 28, 2017 February 28, 2018 February 28, 2018 February 28, 2017

rounding differences

Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 30 Group Balance Sheet Structure (IFRS) HORNBACH Baumarkt Subgroup

Total Total Equity Assets 1,960 1,998 and liabilities 1,998 1,960

113 Liquid funds 102 453 Current liabilities 446 Inventories, accounts 715 receivable and other 722 assets 496 Non-current liabilities 503

1,132 Non-current assets 1,173 Shareholders‘ equity 1,049 1,011

52.5% 51.6%

February 28, 2017 February 28, 2018 February 28, 2018 February 28, 2017

rounding differences

HORNBACH Group HORNBACH Baumarkt Subgroup

18,835 19,614 18,002 18,721

7,726 8,234 7,693 8,201

11,109 11,380 10,309 10,520

February 28, 2017 February 28, 2018 February 28, 2017 February 28, 2018

Germany International Germany International

* incl. passive employees

. Group sales +2.7 % . Like-for-like sales growth (DIY) of + 2.3 % despite unfavourable seasonal effects in spring . International +5.2 % . Germany -0.2 % . Store openings in Zwolle (NL) und Affoltern (CH) support international growth . EBIT and group net income below previous year‘s level as expected . Strong balance sheet with high equity ratio (53.7 %) . Full year revenue and earnings outlook confirmed

+2.7% 1,196 1,227 1,116 1,035 1,052 613 613 592 575 576 -0.1% million € 517 549 467 402 420 +6.3%

0.0% 58 56 57 65 65 2014/15 2015/16 2016/17 2017/18 2018/19 Hornbach Baustoff Union HORNBACH Baumarkt AG [International] HORNBACH Baumarkt AG [Germany]

Rounding differences

+5.4% +2.6% +2.7% +3.3% +2.3% 7.5

6.2 5.3 5.4 5.2

3.8

0.9 0.3 0.5

-0.2 Q1 2017/18 Q2 2017/18 Q3 2017/18 Q4 2017/18 Q1 2018/19 Germany International

* In constant currencies

Q1 2018/19 HBM: HORNBACH Baumarkt Subgroup HBU: HORNBACH Baustoff Union GmbH HI: HORNBACH Immobilien AG

-14.5% 92.7 38.2 2017/18 76.8 76.5 79.3 77.6

65.2 2018/19 million €

14.3 14.1 1.5 0.9

2014/15 2015/16 2016/17 2017/18 2018/19 HBM HBU HI

Rounding differences

Q1 2018/19

2017/18 2018/19

-15.9% 77.6 73.3 65.2 65.2 61.5 64.2 million 48.2 €

19.1 20.7

2014/15 2015/16 2016/17 2017/18 2018/19 Retail Real estate

Rounding differences

HORNBACH Group HORNBACH Baumarkt Subgroup

Q1 2017/18 Q1 2018/19 Q1 2017/18 Q1 2018/19

Cash flow from operating activities 125.2 135.0 115.3 124.3 of which: funds from operations 91.0 77,6 77.4 64.2

of which: change in working capital 34.2 57,4 38.0 60.1

Cash flow from investing activities -22.0 -68.8 -20.3 -64.3

million Short-term investments 10.0 0.0 10.0 0.0 € Cash flow from financing activities -36.9 -5.4 -15.2 -0.2 Cash-effective change in cash and cash equivalents 76.2 60.8 89.8 59.8 Change in cash and cash equivalents due to changes in exchange rates -0.4 -0.1 -0.3 -0.1

Cash and cash equivalents at March 1 190.1 164.1 113.0 102.1

Cash and cash equivalents at May 31 265.9 224.7 202.5 161.8

Rounding differences Factbook Q1 2018/19 ©HORNBACH Group 2018 Page 39 Group Balance Sheet Structure (IFRS) HORNBACH Group

Total Total Equity Assets 2,668 2,824 and liabilities 2,824 2,668

225 164 Liquid funds 621 Current liabilities 512 Inventories, accounts 855 800 receivable and other assets 686 Non-current liabilities 693

1,704 1,744 Non-current assets 1,516 Shareholders‘ equity 1,463

53.7% 54.8%

February 28, 2018 May 31, 2018 May 31, 2018 February 28, 2018

Rounding differences

Total Total Equity Assets 1,998 2,151 and liabilities 2,151 1,998

Liquid funds 162 102 562 Current liabilities 453 Inventories, accounts 774 722 receivable and other assets Non-current liabilities 495 496

1,173 Non-current assets 1,215 Shareholders‘ equity 1,094 1,049

50.9% 52.5%

February 28, 2018 May 31, 2018 May 31, 2018 February 28, 2018

Rounding differences

Sales and earnings forecast HORNBACH Group for FY 2018/19

Boras (Q3) HORNBACH HORNBACH Group Baumarkt Subgroup Sales 2018/19 Sales to increase in a medium single-digit Zwolle (Q1 - opened) percentage range

Sales 2017/18 4,141 € million 3,891 € million

Adjusted EBIT On previous year‘s level 2018/19 Affoltern (Q1 - opened) Adjusted EBIT 166 € million 110 € milion 2017/18 Capex 2018/19 160-180 € million 150-170 € million

Capex 2017/18 148 € million 129 € million

June 22, 2018 Financial Update: 1st Quarter of 2018/19 as of May 31, 2018 July 5, 2018 Annual General Meeting HORNBACH Baumarkt July 6, 2018 Annual General Meeting HORNBACH Holding September 27, 2018 Half-Year Financial Report 2018/19 as of August 31, 2018 DVFA Analysts‘ Conference HORNBACH Holding December 20, 2018 Financial Update: 3rd Quarter of 2018/19 as of November 30, 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.