Prospectus dated October 23, 2019

HORNBACH Baumarkt AG (Bornheim, Federal Republic of Germany)

EUR 250,000,000 3.250 per cent. Notes due 2026 ISIN DE000A255DH9, Common Code 206995335, WKN A255DH Issue Price: 99.232 per cent. unconditionally and irrevocably guaranteed by HORNBACH International GmbH (Bornheim, Federal Republic of Germany)

HORNBACH Baumarkt AG, Hornbachstraße 11, 76879 Bornheim, Federal Republic of Germany (the "Issuer" and together with its consolidated subsidiaries, the "Group") will issue on October 25, 2019 (the "Issue Date") EUR 250,000,000 3.250 per cent. Notes due 2026 (the "Notes") in the denomination of EUR 100,000 each. The payments of all amounts due in respect of the Notes will be unconditionally and irrevocably guaranteed by HORNBACH International GmbH (the "Guarantor") (the "Guarantee"). The Notes and the Guarantee will be governed by the laws of the Federal Republic of Germany ("Germany"). The Notes will bear interest on their aggregate principal amount at the rate of 3.250 per cent. per annum from and including October 25, 2019 (the "Interest Commencement Date") to but excluding October 25, 2026 (the "Maturity Date"). Interest on the Notes will be payable annually in arrear on October 25 of each year, commencing on October 25, 2020. Unless previously redeemed or repurchased and cancelled, the Notes will be redeemed at par on the Maturity Date. The Issuer may, at its option, redeem the Notes prior to the Maturity Date on the terms set forth in § 4 of the terms and conditions of the Notes (the "Terms and Conditions"). The Notes will initially be represented by a Temporary Global Note, without interest coupons, which will be exchangeable in whole or in part for a Permanent Global Note without interest coupons, not earlier than 40 days after the Issue Date, upon certification as to non-U.S. beneficial ownership. This prospectus (the "Prospectus") constitutes a prospectus within the meaning of Article 6.3 of Regulation (EU) No 2017/1129 of the European Parliament and of the Council of 14 June 2017 (as amended, the "Prospectus Regulation"). This Prospectus will be published in electronic form together with all documents incorporated by reference on the website of the Luxembourg Stock Exchange (www.bourse.lu). This Prospectus has been approved by the Commission de Surveillance du Secteur Financier, Luxembourg ("CSSF") in its capacity as competent authority under the Prospectus Regulation. The CSSF only approves this Prospectus as meeting the standards of completeness, comprehensibility and consistency imposed by the Prospectus Regulation. Such approval should neither be considered as an endorsement of the Issuer or the Guarantor that is subject of this Prospectus nor of the quality of the securities that are the subject of this Prospectus. By approving a prospectus, the CSSF shall give no undertaking as to the economic and financial soundness of the operation or the quality or the solvency of the Issuer or Guarantor in line with the provisions of Article 6(4) of the Luxembourg law of 16 July 2019 on prospectuses for securities. Application has been made to the Luxembourg Stock Exchange for the Notes to be listed on the official list of the Luxembourg Stock Exchange (the "Official List") and to be admitted to trading on the Luxembourg Stock Exchange's regulated market. The Luxembourg Stock Exchange's regulated market is a regulated market for the purposes of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (as amended, "MiFID II"). This Prospectus will be valid for 12 months after its approval for admission of the Notes to trading on a regulated market. In case of a significant new factor, material mistake or material inaccuracy relating to the information included in this Prospectus which may affect the assessment of the Notes, the Issuer will prepare and publish a supplement to the Prospectus without undue delay in accordance with Article 23 of the Prospectus Regulation. The obligation of the Issuer to supplement this Prospectus will cease to apply with the admission to trading of the Notes on the regulated market of the Luxembourg Stock Exchange and at the latest upon expiry of the validity period of this Prospectus. Investors should make their own assessment as to the suitability of investing in the Notes. This Prospectus does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes in any jurisdiction where such offer or solicitation is unlawful. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and subject to certain exceptions, the Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons. Prospective purchasers of the Notes should ensure that they understand the nature of the Notes and the extent of their exposure to risks and that they consider the suitability of the Notes as an investment in light of their own circumstances and financial condition. Investing in the Notes involves certain risks. Please review the section entitled "Risk Factors" beginning on page 5 of this Prospectus. Joint Lead Managers

Commerzbank HSBC UniCredit Bank RESPONSIBILITY STATEMENT

Each of the Issuer and the Guarantor, each with its registered office in Bornheim, Germany, accepts responsibility for the information contained in this Prospectus and hereby declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of its knowledge, in accordance with the facts and does not omit anything likely to affect the import of such information.

Each of the Issuer and the Guarantor further confirms that (i) this Prospectus contains all information with respect to the Issuer, the Guarantor, the Group, the Notes and the Guarantee which is material in the context of the issue and offering of the Notes, including all information which, according to the particular nature of the Issuer, the Guarantor and of the Notes and the Guarantee is necessary to enable investors and their investment advisers to make an informed assessment of the assets and liabilities, financial position, profits and losses, and prospects of the Issuer, the Guarantor and the Group and of the rights attached to the Notes and the Guarantee; (ii) the statements contained in this Prospectus relating to the Issuer, the Guarantor, the Group, the Notes and the Guarantee are in every material particular true and accurate and not misleading; (iii) there are no other facts in relation to the Issuer, the Guarantor, the Group, the Notes or the Guarantee the omission of which would, in the context of the issue and offering of the Notes, make any statement in this Prospectus misleading in any material respect; and (iv) reasonable enquiries have been made by the Issuer and the Guarantor to ascertain such facts and to verify the accuracy of all such information and statements.

NOTICE

No person is authorised to give any information or to make any representation other than those contained in this Prospectus and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Issuer, the Guarantor or the Joint Lead Managers (as defined in the section "Subscription and Sale of the Notes").

This Prospectus should be read and understood in conjunction with any supplement hereto and with any documents incorporated herein or therein by reference.

Each investor contemplating purchasing any Notes should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, of the Issuer and the Guarantor. This Prospectus does not constitute an offer of Notes or an invitation by or on behalf of the Issuer or the Joint Lead Managers to purchase any Notes. Neither this Prospectus nor any other information supplied in connection with the Notes should be considered as a recommendation by the Issuer, the Guarantor or the Joint Lead Managers to a recipient hereof and thereof that such recipient should purchase any Notes.

This Prospectus reflects the status as of its date. The offering, sale and delivery of the Notes and the distribution of this Prospectus may not be taken as an implication that the information contained herein is accurate and complete subsequent to the date hereof or that there has been no adverse change in the financial condition of the Issuer and the Guarantor since the date hereof.

To the extent permitted by the laws of any relevant jurisdiction, neither any Joint Lead Manager nor any of its respective affiliates nor any other person mentioned in this Prospectus, except for the Issuer and the Guarantor, accepts responsibility for the accuracy and completeness of the information contained in this Prospectus or any document incorporated by reference, and accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none of these persons accept any responsibility for the accuracy and completeness of the information contained in any of these documents. The Joint Lead Managers have not independently verified any such information and accept no responsibility for the accuracy thereof.

This Prospectus does not constitute, and may not be used for the purposes of, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation.

i The distribution of this Prospectus and the offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus comes are required to inform themselves about and to observe any such restrictions.

For the avoidance of doubt the content of any website referred to in this Prospectus does not form part of this Prospectus and the information on such websites has not been scrutinised or approved by the CSSF as competent authority under the Prospectus Regulation.

The language of this Prospectus is English. In respect of the Terms and Conditions German is the controlling and legally binding language.

In this Prospectus all references to "€", "EUR" or "Euro" are to the currency introduced at the start of the third stage of the European Economic and Monetary Union, and as defined in Article 2 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the Euro, as amended.

MIFID II PRODUCT GOVERNANCE / TARGET MARKET: PROFESSIONAL INVESTORS AND ECPS ONLY

Solely for the purposes of each manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in MiFID II; each having at least basic knowledge and/or experience with financial products, a long term investment horizon, asset accumulation as investment objective, the ability to bear losses up to total loss and the risk tolerance and compatibility of the risk/reward profile corresponding to 5 as Summary Risk Indicator (SRI); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturers' target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturers' target market assessment) and determining appropriate distribution channels.

STABILISATION

IN CONNECTION WITH THE ISSUE OF THE NOTES, COMMERZBANK AKTIENGESELLSCHAFT (THE "STABILISING MANAGER") (OR ANY PERSON ACTING ON BEHALF OF THE STABILISING MANAGER) MAY OVER-ALLOT NOTES OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, STABILISATION MAY NOT NECESSARILY OCCUR. ANY STABILISATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE TERMS OF THE OFFER OF THE NOTES IS MADE AND, IF BEGUN, MAY CEASE AT ANY TIME, BUT IT MUST END NO LATER THAN THE EARLIER OF 30 DAYS AFTER THE ISSUE DATE OF THE NOTES AND 60 DAYS AFTER THE DATE OF THE ALLOTMENT OF THE NOTES. ANY STABILISATION ACTION OR OVER-ALLOTMENT MUST BE CONDUCTED BY THE STABILISING MANAGER (OR ANY PERSON ACTING ON BEHALF OF THE STABILISING MANAGER) IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES.

FORWARD-LOOKING STATEMENTS

This Prospectus contains certain forward-looking statements. A forward-looking statement is a statement that does not relate to historical facts and events. They are based on analyses or forecasts of future results and estimates of amounts not yet determinable or foreseeable. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases, including references and assumptions. This applies, in particular, to statements in this Prospectus containing information on future earning capacity, plans and expectations regarding the Group's business and management, its growth and profitability, and general economic and regulatory conditions and other factors that affect it.

ii Forward-looking statements in this Prospectus are based on current estimates and assumptions that the Issuer and the Guarantor make to the best of their present knowledge. These forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results, including the Group's financial condition and results of operations, to differ materially from and be worse than results that have expressly or implicitly been assumed or described in these forward-looking statements. The Group's business is also subject to a number of risks and uncertainties that could cause a forward-looking statement, estimate or prediction in this Prospectus to become inaccurate. Accordingly, investors are strongly advised to read the section "General Information on the Issuer and the Group" of this Prospectus. This section includes more detailed descriptions of factors that might have an impact on the Group's business and the markets in which it operates.

In light of these risks, uncertainties and assumptions, future events described in this Prospectus may not occur. In addition, neither the Issuer nor the Guarantor nor the Joint Lead Managers assume any obligation, except as required by law, to update any forward-looking statement or to conform these forward-looking statements to actual events or developments.

MARKET AND INDUSTRY DATA

The information from third-party sources that is cited in this Prospectus has been reproduced accurately. As far as the Issuer and the Guarantor are aware and are able to ascertain from information published by such third parties, no facts have been omitted that would render the reproduced information included in this Prospectus inaccurate or misleading. Prospective investors should nevertheless consider this information carefully. This Prospectus also contains estimates of market data and information derived from these estimates that is not available from publications issued by market research firms or from any other independent sources. This information is based on the Issuer’s internal estimates and, as such, may differ from the estimates made by its competitors or from data collected in the future by market research firms or other independent sources.

iii TABLE OF CONTENTS

RISK FACTORS ...... 5

USE OF PROCEEDS ...... 12

TERMS AND CONDITIONS OF THE NOTES ...... 13

FORM OF GUARANTEE...... 38

DESCRIPTION OF THE ISSUER AND THE GROUP ...... 52

DESCRIPTION OF THE GUARANTOR ...... 70

TAXATION WARNING ...... 74

SUBSCRIPTION AND SALE OF THE NOTES ...... 75

GENERAL INFORMATION ...... 77

DOCUMENTS INCORPORATED BY REFERENCE ...... 79

FINANCIAL STATEMENTS OF THE GUARANTOR ...... F-1

iv RISK FACTORS

The following is a disclosure of the principal risk factors which may affect the ability of the Issuer and the Guarantor to fulfil their respective obligations under the Notes and the Guarantee and which are material to the Notes in order to assess the market risks associated with the Notes. Prospective investors should consider these risk factors prior to deciding to purchase the Notes.

Prospective investors should consider all information provided in this Prospectus or incorporated by reference into this Prospectus and consult with their own professional advisers (including their financial, accounting, legal and tax advisers) if they consider it necessary. In addition, investors should be aware that the risks described may combine and thus intensify one another.

Words and expressions defined in the terms and conditions of the Notes (the "Terms and Conditions") shall have the same meanings in this section.

Risks related to the Issuer, the Guarantor and the Group

Set out below are risks associated with the Group which may have a material impact on its business, financial condition, results of operations and cash flow and therefore the Issuer’s ability to perform its obligations under the Notes or the Guarantor’s ability to perform its obligations under the Guarantee.

I. Market Risks

The Group is affected by general economic conditions and trends in consumer behaviour.

The Group’s results of operations are affected by the prevailing economic climate, levels of unemployment, salaries, wage rates, availability of consumer credit, consumer confidence, demographic developments and consumer perception of economic conditions. Consumers may spend less money on do-it-yourself ("DIY") products during economic downturns or in periods of low economic growth, as they tend not to undertake cost-intensive improvement projects. The Group is, in particular, dependent on economic developments in Germany, where the Group generated 51.7% of its net sales during the financial year 2018/2019. Consequently, during periods of economic downturn or low economic growth, the Group has recorded, and may continue to record, significantly lower net sales.

The Group operates in highly competitive markets and could lose market shares to existing and new competitors.

The DIY retail industry is highly competitive in the markets in which the Group operates. The Group’s major competitors are primarily other national and international DIY retailers. In recent years, competition has increased as general retailers such as department stores, electronics stores, garden centers, supermarkets, discount retailers, mail order retailers and internet retailers entered the DIY market. Some of the Group’s competitors are larger than the Group is, or are divisions or subsidiaries of larger corporations, and are more established or have greater financial or other resources than the Group, which may put them in an advantageous position when negotiating contracts with major suppliers or acquiring retail real estate, and may enable them to devote greater resources to advertising and marketing campaigns.

This trend may be accelerated by the increasing use of e-commerce and the internet as distribution channel. Consumers might prefer to order especially smaller amounts of items over the internet and to avoid driving to the nearest stationary HORNBACH store. This might affect targeted purchases as well as additional purchases in the stationary HORNBACH stores. Although the Group has an own e-commerce offering, customers might choose to conduct their DIY online shopping at global competitors like Amazon which provide a large selection of products at competitive or sometimes even very low prices, and which can capitalize on existing client relationships, e.g. with Amazon Prime members.

If the Group is unable to compete effectively, its market share and sales in its stationary and online stores may be materially adversely affected.

5 II. Business and operational risks

The expansion of the Group’s store network is capital intensive and investments in new locations may not yield the anticipated returns.

The Group’s strategy involves expanding its stationary store network mainly in other European countries and enlarging the online market share in all countries where the Group operates interconnected DIY retail. New store openings involve significant capital expenditures for land and buildings as well as operating and business equipment. The Group cannot guarantee that it will be able to continuously secure new suitable locations on commercially reasonable terms or that investments in new locations will yield the anticipated returns. The failure of the Group to implement its growth strategy might adversely affect its margins, its market share and ultimately its sales.

The Group’s business is seasonal and can be adversely affected by sustained periods of abnormal weather.

The Group’s sales volumes tend to fluctuate based on weather conditions, particularly sales of gardening supplies (such as plants and garden furniture), which generated approximately 20.0% of its revenue in the financial year 2018/2019. In general, the Group’s sales are highest during the spring months of April through June and lowest during the winter months of December through February. Significant periods of unfavourable weather conditions, extreme weather conditions or unseasonal conditions may result in unsold inventory, especially of seasonal merchandise, that is difficult to clear without relying on mark-downs or promotional sales. Also, the Group may fail to meet customer demands for certain products, which usually would be considered out of season. Any of the foregoing could significantly affect the Group’s sales in its stationary and online stores.

Group may not be able to accurately predict customer preferences or demand.

The constant availability of new products and changes in customer preferences make it more difficult to accurately predict demand for the Group’s products and the Group cannot assure that its orders will match actual demand. If the Group is unable to successfully predict or respond to changing styles or trends or misjudge the market or consumer demand, its sales will decline and it may retain a substantial amount of unsold inventory, a portion of which may be perishable goods, or miss sales opportunities. As a result, the Group may be forced to rely on additional markdowns or promotional sales to dispose of excess or slow-moving inventory, which could have a material adverse effect on the Group’s net sales.

The Group may encounter supply shortages or other supply difficulties.

As a retailer, the Group sources its products from external producers and suppliers. If the Group’s existing suppliers were unable or unwilling to continue to supply the Group, or if they are willing to do so only at higher prices or on commercially unfavourable terms, the Group’s ability to provide materials, products and services to its customers at competitive prices will be adversely affected. In addition, Group sources a significant part of its products from countries outside of Europe, and expects such portion will further increase. Consequently, the Group faces a variety of risks which are characteristic to these foreign markets, including, in particular, delays in shipping, increased costs of transportation and currency and exchange rate risks. If any of these risks were to realise themselves, the Group’s sales in its stationary and online stores might decline.

Interruptions at the Group’s logistics centers for distribution of its products to its stores could have a material adverse effect on the supply chain and operations.

Any major breakdown, disturbance or accident (such as a serious fire, an explosion or a natural disaster) affecting one or more of the Group’s seven logistics centers for the storage and distribution of its products to its stores might interrupt the supply chain, which would affect the product range and inventory in the connected stores and their ability to meet its customers’ requirements. Any of the aforementioned events are likely to have a material adverse effect on the Group’s net sales.

Due to the increasing importance of e-commerce, the Group is exposed to risks with regard to the availability and acceptance of its online shops.

As part of its integrated multi-channel strategy, the Group has intensified its online activities and has established online stores in all countries in which it has stationary DIY retail operations. The proper functioning of the websites

6 and online shops of the Group is therefore of great importance to the Group, also taking into account that customers do not only purchase products online but, in the experience of the Group, increasingly inform themselves online about products, prices and availability prior to purchasing products in the stationary markets. Failures in the accessibility of the websites or the online shop could lead to reduced orders and, in the event of repeated failures or disruptions, to reduced acceptance of the online shop on the part of customers. Any of the aforementioned circumstances could have a material adverse effect on the Group’s net sales.

Inability to update its information technology and/or a disruption in its information technology systems could adversely affect the Group’s operations.

The Group’s business activities rely to a significant degree on the efficient and uninterrupted operation of its information technology systems. Introduction of new software or upgrades require not only considerable investment but also skilled personnel, and may not be successful or may take longer than initially anticipated. Any significant disruption or breakdown of any of the systems operated at Group’s principal office in Bornheim, which serves as the primary site for all its computer and communications systems or any other relevant sites could significantly affect the Group’s ability to manage its information technology systems. The occurrence of any of these risks could affect the Group’s operations and thus the sales in its stationary and online stores.

Longer disruptions of business operations due to work stoppages or strikes could adversely affect the Group’s business.

The operations of the Group are labour-intensive and require a considerable workforce. The Group cannot assure that it will not encounter work stoppages, strikes or other disturbances of operations occasioned by its unionized labour force, particularly in Germany, or that, upon expiration of existing collective bargaining agreements, it will be able to reach new agreements on satisfactory terms. In addition, work stoppages, strikes or similar measures at the Group’s suppliers’ sites or logistics provider could impact the Group’s ability to deliver its products or services to its customers. Any of these events could have a material adverse effect on the Group’s net sales or costs.

The Group’s procurement or operating costs may increase.

The Group may face increasing purchasing prices for articles involving a high share of crude oil, copper or steel as a result of increasing prices on the international commodities markets. Furthermore, higher prices for products involving energy-intensive manufacturing processes could lead to an increase in overall procurement costs. Due to the large retail and warehouse space required for the Group’s business and the resulting significant costs for operating the store and warehouse network, increases in energy prices also affect the operating costs of the Group’s store network.

The Group rents/leases approximately 68% of the selling space it uses throughout Europe and is thus subject to price increases in the relevant local rental/lease property markets. Moreover, the Group’s operations are subject to price increases from the various utility providers, and increases in local taxes and assessments, in the areas in which the Group operates. If the Group is unable to pass on any higher procurement or operating costs to its customers, or only following a certain delay, it will face declining margins.

Possible closures of unprofitable stores could have a negative impact on the cost performance of the Group in the short to medium term.

In individual cases, temporary or partial closures were and are necessary in order to expand or modernize existing stores at the same location and to prepare the rollout of new space concepts. Moreover, the operation of individual stores could prove to be unprofitable in the long term and could lead the Group to permanently close a location. This could lead to extraordinary closure and liquidation costs, particularly with regard to long-term rental agreements and the termination of employment contracts. The occurrence of one of these circumstances could adversely affect the cost situation of the Group in the short to medium term.

Any negative impact on the reputation of, and value associated with, the name “HORNBACH” could adversely affect the Group’s business.

The Group’s reputation and the value associated with the name “HORNBACH” is central to the success of the Group’s business. Its reputation and brand recognition may be diminished, inter alia, by the Group’s inability to

7 control and guarantee the quality of its products and services, in particular of products and services sold under own brands, or by other factors. If the aforementioned risks were to realize, this may have material adverse effects on the Group’s sales in its stationary and online stores.

III. Legal and regulatory risks

Compliance with or changes in the regulatory environment could adversely affect the Group’s business.

The Group is subject to and must comply with various EU and other national and local laws and regulations governing, among other things, advertising, product-safety, intellectual property protection, data protection, anti- trust, health and safety, labour, building, environment, tax and other laws and regulations, including consumer credit and consumer protection regulations and zoning and occupancy ordinances, that regulate retailers generally and/or govern the import, promotion and sale of merchandise. Changes in these or other relevant laws and regulations to which the Group is subject could lead to increased costs, and violations of these regulations could result in damage payments, substantial fines, revocation of applicable permits, remediation costs for existing liabilities and increased costs for future liabilities, and materially harm the Group’s financial condition and results of operations. In addition, a tightening up of zoning and planning regulations, such as the German Federal Building Code (Baugesetzbuch) and related legislation, may limit the Group’s ability to expand its business.

Product liability claims and product recalls.

Faults or defects in products distributed by the Group can cause damage to the property or health of customers or third parties and lead to serious indirect or consequential damages. In accordance with applicable laws, the Group bears a portion of and in some cases the primary risk of product liability and warranty claims, and it might be required to carry out a product recall and to pay the costs of procuring defect-free replacement products. Faulty or defective products, product liability and warranty claims, as well as product recalls can damage the Group’s overall reputation and lead to temporary or long-term buying restraint. Each of the aforementioned risks may have a material adverse effect on the Group’s net sales and costs.

Legal disputes and proceedings could result in substantial payment obligations of the Group.

The Group is, in the ordinary course of business, regularly involved in legal disputes and proceedings, both in court and out of court, e.g. public law disputes relating to real estate development and civil law proceedings relating to claims raised by customers, suppliers, service providers or competitors. Such disputes and proceedings could result in substantial payments or costs to be borne by the Group, and, even if successfully disposed of without direct adverse financial effect, could negatively impact the reputation of Group and divert management resources from more beneficial uses.

IV. Financial risks

Foreign exchange risks

The Group is exposed to transaction risk resulting from fluctuations in currency exchange rates because it sources, directly or indirectly, a portion of its products internationally and because it has foreign operations outside the Euro zone (in particular in Sweden, Switzerland, Romania and the Czech Republic). The Group’s foreign exchange hedging strategies may not adequately protect its operating results from the effects of exchange rate fluctuations. As the Group further continues its international expansion, it foresees an increase in foreign exchange risk that might have an impact on the Group’s results of operations and cash flow.

V. Specific risks relating to the Guarantor

The profit and loss transfer agreement with the Issuer might affect the Guarantor’s financial position and its ability to perform its obligations under the Guarantee.

The Guarantor has concluded a control and profit and loss transfer agreement with the Issuer as controlling entity. According to this agreement, the Issuer is entitled to issue directions to the Guarantor’s management and the Guarantor is obliged to transfer its entire profits to the Issuer, which may adversely affect the Guarantor’s financial position and its ability to perform its obligations under the Guarantee.

8 Risks relating to the Notes and the Guarantee

VI. Risks associated with the Characteristics of the Notes and the Guarantee

Risks related to the Nature of the Notes as Long-Term Securities

The Issuer will redeem the Notes on October 25, 2026 (the "Maturity Date"), unless they have been previously redeemed or repurchased and cancelled.

The holders of Notes (the "Noteholders") will only be entitled to request a redemption of their Notes prior to the Maturity Date upon occurrence of a Change of Control Event or an event of default (as described in the Terms and Conditions).

There is also no guarantee that an active public market in the Notes will develop. In an illiquid market, an investor might not be able to sell Notes at any time at fair market prices.

Prospective investors should be aware that they may be required to bear the financial risk of an investment in the Notes until the Maturity Date and may not recover their investment before the end of this period.

Risks related to a possible Early Redemption of the Notes by the Issuer

The Issuer may, at its option, call and redeem the Notes with effect as of and including July 25, 2026 to but excluding the Maturity Date. In addition, the Issuer may, at its option, call and redeem the Notes at any time for reasons of taxation (as defined and described in the Terms and Conditions), or if 85 per cent. or more in principal amount of the Notes initially issued have been redeemed or purchased.

In the event that the Issuer exercises the option to call and redeem the Notes, the Noteholders might suffer a lower than expected yield and might not be able to reinvest the funds on the same terms.

Risks related to the Effective Subordination of the Notes and the Guarantee

The Terms and Conditions and the terms of the Guarantee only require the Issuer, the Guarantor and their respective subsidiaries to secure the Notes equally if they provide security for the benefit of Capital Markets Indebtedness.

To the extent the Issuer, the Guarantor or any of their respective subsidiaries provide security interests over their respective assets for the benefit of other indebtedness without also securing the Notes, the Notes and the Guarantee will be effectively junior to such debt to the extent of such assets.

As a result of the foregoing, holders of (present or future) secured debt of the Issuer, the Guarantor or any of their respective subsidiaries may recover disproportionately more on their claims than the Noteholders in an insolvency, bankruptcy or similar proceeding. The Issuer and the Guarantor may not have sufficient assets remaining to make payments under the Notes or the Guarantee, respectively.

Risks related to the Enforceability of the Guarantee

The Guarantor is organised as a limited liability company under German law (Gesellschaft mit beschränkter Haftung). The enforcement of the Guarantee will therefore be limited by virtue of specific limitation language in the Guarantee reflecting the requirement under the capital maintenance rules imposed by sections 30 and 31 of the German Limited Liability Company Act (Gesetz betreffend die Gesellschaften mit beschränkter Haftung) if and to the extent that payments under the Guarantee would reduce the Guarantor's net assets (Nettovermögen) to an amount less than its stated share capital (Stammkapital), or (if its net assets are already lower than its stated share capital) would cause such amount to be further reduced. These limitations will, to the extent applicable, restrict the right to receive payment under the Guarantee and will limit the claim accordingly irrespective of the granting of the Guarantee.

VII. Risks related to Interest Payments

Risks related to Fixed Interest Rate Notes

The Notes bear interest at a fixed rate. A holder of a fixed interest rate note is exposed to the risk that the price of such note may fall because of changes in the market interest rate. While the nominal interest rate of a fixed interest

9 rate note is fixed during the life of such note or during a certain period of time, the current interest rate on the capital market (market interest rate) typically changes on a daily basis. As the market interest rate changes, the price of such note changes in the opposite direction. If the market interest rate increases, the price of such note typically falls, until the yield of such note is approximately equal to the market interest rate. If the market interest rate falls, the price of a fixed interest rate note typically increases, until the yield of such note is approximately equal to the market interest rate. Noteholders should be aware that movements of the market interest rate can adversely affect the market price of the Notes and can lead to losses for the Noteholders if they sell their Notes.

VIII. Risks associated with the Solvency of the Issuer and the Guarantor

Risk of a Partial or Total Failure of the Issuer and/or the Guarantor to make Interest and/or Redemption Payments

Any person who purchases the Notes is relying on the creditworthiness of the Issuer and the Guarantor. Noteholders are subject to the risk of a partial or total failure of the Issuer and/or the Guarantor to make interest and/or redemption payments that the Issuer is obliged to make under the Notes or the Guarantor is obliged to make under the Guarantee. A materialisation of the credit risk (for example, because of the materialisation of any of the risks regarding the Issuer and/or the Group) may result in partial or total failure of the Issuer and/or the Guarantor to make interest and/or redemption payments under the Notes and the Guarantee.

Risks related to Structural Subordination

In the event of a liquidation or an insolvency or similar proceeding of any of the Guarantor's subsidiaries, such subsidiary will pay the holders of its own debt (including holders of third-party debt which such subsidiary has guaranteed), its trade creditors and any preferred shareholders before it would be able to distribute any of its assets to its direct shareholder, i.e. the Guarantor. As a result of the foregoing, the Guarantor may not have sufficient assets to make payments on the Guarantee.

Risk of a potential Decrease in the Market Value of the Notes

If the likelihood that the Issuer and/or the Guarantor will be in a position to perform all obligations under the Notes in full when they fall due decreases, for example, because of the materialisation of any of the risks regarding the Issuer, the Guarantor and/or the Group, the market value of the Notes will suffer. In addition, even if the likelihood that the Issuer and/or the Guarantor will be in a position to perform all obligations under the Notes when they fall due actually has not decreased, market participants could nevertheless have a different perception. If any of these risks occurs, third parties would only be willing to purchase Notes for a lower price than before the materialisation of the mentioned risk. Under these circumstances, the market value of the Notes is likely to decrease.

IX. Other Risks related to the Notes

Risks in connection with the Application of the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen, "SchVG")

Since the Terms and Conditions of the Notes provide for meetings of Noteholders or the taking of votes without a meeting, the Terms and Conditions of the Notes may be amended by majority resolution of the Noteholders and a Noteholder is subject to the risk of being outvoted by a majority resolution of the Noteholders. The rules pertaining to resolutions of Noteholders are set out in the SchVG and are largely mandatory. Pursuant to the SchVG the relevant majority for Noteholders' resolutions is generally based on votes cast, rather than on the aggregate principal amount of the Notes outstanding, therefore, any such resolution may effectively be passed with the consent of less than a majority of the aggregate principal amount of the Notes outstanding. As such majority resolution is binding on all Noteholders, certain rights of a Noteholder against the Issuer under the Terms and Conditions of the Notes may be amended or reduced or even cancelled.

Since the Terms and Conditions of the Notes provide that the Noteholders are entitled to appoint a Noteholders' Representative by a majority resolution of such Noteholders, it is possible that a Noteholder may be deprived of its individual right to pursue and enforce its rights under the Terms and Conditions of the Notes against the Issuer, such right passing to the Noteholders' Representative who is then exclusively responsible to claim and enforce the rights of all the Noteholders.

10 The provisions in the Terms and Conditions regarding amendments of the Terms and Conditions by majority resolution of Noteholders will apply mutatis mutandis to the Guarantee.

11 USE OF PROCEEDS

In connection with the issue of the Notes, the Issuer will receive net proceeds of approximately EUR 247,080,000. The Issuer intends to use the net proceeds primarily to refinance existing indebtedness and for other general corporate purposes of the Group.

12 TERMS AND CONDITIONS OF THE NOTES

Anleihebedingungen Terms and Conditions

Diese Anleihebedingungen sind in deutscher Sprache These Terms and Conditions are written in the German abgefasst und mit einer Übersetzung in die englische language and provided with an English language Sprache versehen. Der deutsche Wortlaut ist allein translation. The German text shall be the only legally rechtsverbindlich. Die englische Übersetzung dient binding version. The English language translation is nur zur Information. provided for information only.

§ 1 § 1 (Verbriefung und Nennbetrag) (Form and Denomination)

(1) Nennbetrag. Die HORNBACH Baumarkt AG (1) Principal Amount. HORNBACH Baumarkt AG (die "Emittentin") begibt auf den Inhaber (the "Issuer") issues bearer Notes in the lautende Schuldverschreibungen im aggregate principal amount of Gesamtnennbetrag von EUR 250.000.000, EUR 250,000,000 divided into Notes in a eingeteilt in Schuldverschreibungen (die denomination of EUR 100,000 (the "Principal "Schuldverschreibungen" und jeweils eine Amount") each (the "Notes" and each a "Schuldverschreibung") im Nennbetrag von je "Note"). EUR 100.000 (der "Nennbetrag").

(2) Vorläufige Globalurkunde, Austausch gegen (2) Temporary Global Note, Exchange against Dauerglobalurkunde. Die Permanent Global Note. The Notes are initially Schuldverschreibungen werden zunächst durch represented by a temporary global bearer Note eine vorläufige Inhaber-Globalurkunde (die (the "Temporary Global Note") without "Vorläufige Globalurkunde") ohne interest coupons. Zinsscheine verbrieft.

Die Vorläufige Globalurkunde wird frühestens The Temporary Global Note will be 40 Tage nach dem Tag der Begebung der exchangeable, free of charge to the Noteholders Schuldverschreibungen gegen Nachweis des (as defined below), in whole or in part for a Nichtbestehens wirtschaftlichen U.S.- permanent global bearer Note (the "Permanent Eigentums im Sinne des U.S.-Rechts (non-U.S. Global Note") (the Temporary Global Note and beneficial ownership) insgesamt oder teilweise the Permanent Global Note, together, the gegen eine dauerhafte Inhaber-Globalurkunde "Global Note") without interest coupons not (die "Dauer-Globalurkunde") (die Vorläufige earlier than 40 days after the date of issue of the Globalurkunde und die Dauer-Globalurkunde Notes, upon certification as to non-U.S. gemeinsam die "Globalurkunde") ohne beneficial ownership. Payment of interest on Zinsscheine ausgetauscht werden, ohne dass Notes represented by the Temporary Global hierfür Kosten für die Anleihegläubiger (wie Note will be made only after delivery of such nachstehend definiert) entstehen. certifications. The right of the Noteholders to Zinszahlungen auf durch die Vorläufige require the issue and delivery of definitive notes Globalurkunde verbriefte or interest coupons is excluded. Schuldverschreibungen erfolgen erst nach Vorlage solcher oben beschriebenen Bescheinigungen. Ein Recht der Anleihegläubiger auf Ausgabe und Lieferung von Einzelurkunden oder Zinsscheinen besteht nicht.

Die Vorläufige Globalurkunde und die Dauer- The Temporary Global Note and the Permanent Globalurkunde tragen jeweils die Global Note shall each bear the manual eigenhändigen Unterschriften von zwei signatures of two duly authorised officers of the

13 Vertretungsberechtigten der Emittentin sowie Issuer as well as the manual signature of a die eigenhändige Unterschrift eines person duly authorised by the Principal Paying Vertretungsberechtigten der Hauptzahlstelle Agent (as defined in § 10). (wie in § 10 definiert).

(3) Clearingsystem. Die Globalurkunde wird von (3) Clearing System. The Global Note will be kept oder im Auftrag von Clearstream Banking AG, in custody by or on behalf of Clearstream Frankfurt am Main ("Clearingsystem") Banking AG, Frankfurt am Main ("Clearing verwahrt bis sämtliche Verbindlichkeiten der System") until all obligations of the Issuer Emittentin aus den Schuldverschreibungen under the Notes have been satisfied. erfüllt sind.

(4) Anleihegläubiger. Den Inhabern von (4) Noteholders. The holders of Notes Schuldverschreibungen ("Anleihegläubiger") ("Noteholders") are entitled to co-ownership stehen Miteigentumsanteile an der participations in the Global Note, which are Globalurkunde zu, die gemäß anwendbarem transferable in accordance with applicable laws Recht und den jeweils geltenden Bestimmungen and the rules and regulations of the Clearing und Regeln des Clearingsystems übertragen System. werden können.

§ 2 § 2 (Status, Negativverpflichtung, Garantie) (Status, Negative Pledge, Guarantee)

(1) Status. Die Schuldverschreibungen begründen (1) Status. The obligations under the Notes unmittelbare, nicht besicherte und nicht constitute direct, unsecured and unsubordinated nachrangige Verbindlichkeiten der Emittentin, obligations of the Issuer ranking pari passu die untereinander und mit allen anderen among themselves and pari passu with all other gegenwärtigen und zukünftigen nicht present and future unsecured and besicherten und nicht nachrangigen unsubordinated obligations of the Issuer, save Verbindlichkeiten der Emittentin gleichrangig for any obligations required to be preferred by sind, soweit zwingende gesetzliche law. Bestimmungen nichts anderes vorschreiben.

(2) Negativverpflichtung. Die Emittentin (2) Negative Pledge. The Issuer undertakes, so long verpflichtet sich, solange as any of the Notes are outstanding, but only up Schuldverschreibungen ausstehen, jedoch nur to the time that all amounts of principal and bis zu dem Zeitpunkt, an dem alle Beträge an interest have been placed at the disposal of the Kapital und Zinsen an das Clearingsystem oder Clearing System or to its order for credit to the an dessen Order zur Gutschrift auf den Konten accounts of the relevant account holders of the der jeweiligen Kontoinhaber des Clearing System, Clearingsystems zur Verfügung gestellt worden sind,

(a) kein Grundpfandrecht, (a) not to create or permit to subsist any Mobiliarpfandrecht, Pfandrecht oder mortgage, charge, pledge or other form sonstiges dingliches Sicherungsrecht of encumbrance in rem (each a (jedes ein "Sicherungsrecht") an ihren "Security Interest") over the whole or gesamten Vermögenswerten oder Teilen any part of its assets to secure any davon zur Besicherung einer anderen present or future Financial Indebtedness; gegenwärtigen oder zukünftigen and Finanzverbindlichkeit zu gewähren oder bestehen zu lassen; und

14 (b) zu veranlassen (soweit rechtlich möglich (b) to procure (to the extent legally possible und zulässig), dass keine and permissible) that no Subsidiary will Tochtergesellschaft ein Sicherungsrecht create or permit to subsist any Security an seinen jeweiligen gesamten Interest over the whole or any part of its Vermögenswerten oder jeweiligen assets to secure any present or future Teilen davon zur Besicherung einer own or third-party Financial eigenen oder fremden gegenwärtigen Indebtedness, oder zukünftigen Finanzverbindlichkeit mit Sicherungsrechten gewährt oder bestehen lässt,

ohne zuvor oder gleichzeitig die without prior thereto or at the same time letting Anleihegläubiger gleichrangig und the Noteholders share pari passu and equally in gleichwertig an einem solchen Sicherungsrecht such Security Interest or benefit from an zu beteiligen oder zu Gunsten der equivalent Security Interest, which shall be Anleihegläubiger ein Sicherungsrecht zu approved by an independent expert as being gleichwertigen Bedingungen zu bestellen, equivalent security. welches von einem unabhängigen Sachverständigen als gleichwertige Sicherheit beurteilt wird.

Eine nach diesem § 2(2) zu leistende Sicherheit Any security which is to be provided pursuant kann auch zu Gunsten eines Treuhänders der to this § 2(2) may also be provided to a person Anleihegläubiger bestellt werden. acting as trustee for the Noteholders.

(3) Diese Verpflichtung findet keine Anwendung (3) This undertaking shall not apply to auf

(a) ein Sicherungsrecht, das kraft Gesetzes (a) a Security Interest created by operation entsteht; of law;

(b) ein Sicherungsrecht, das aufgrund (b) a Security Interest arising on the basis of branchenüblicher Allgemeiner customary general terms and conditions Geschäftsbedingungen eines (Allgemeine Geschäftsbedingungen) of a Kreditinstituts entsteht, mit dem die credit institution with whom the Issuer Emittentin oder eine Tochtergesellschaft or a Subsidiary has a business eine Geschäftsbeziehung unterhält; relationship;

(c) ein Sicherungsrecht, das aufgrund (c) a Security Interest arising on the basis of branchenüblicher Allgemeiner customary general terms and conditions Geschäftsbedingungen eines Lieferanten (Allgemeine Geschäftsbedingungen) of a im gewöhnlichen Geschäftsgang (nicht supplier in the ordinary course of durch Pflichtverletzung) an solchen business (other than as a result of a Gütern entsteht, die im Rahmen des breach of duty) in respect of such goods üblichen Geschäftsbetriebs an die that are delivered to the Issuer or it Emittentin oder ihre Subsidiary as part of their normal Tochtergesellschaften geliefert werden; business operations;

(d) ein Sicherungsrecht, das zum (d) a Security Interest existing on the issue Begebungstag der date of the Notes, provided that a Schuldverschreibungen bereits besteht, revaluation or increase of any such pre- wobei Revalutierung oder Erhöhungen existing secured Financial Indebtedness diese bereits bestehenden gesicherten is not included in the scope of this sub- Finanzverbindlichkeiten nicht unter paragraph (d); diesen Unterabsatz (d) fallen;

15 (e) Sicherungsrechte, welche nicht bereits (e) Security Interests (other than already durch einen der Unterabsätze (a)-(d) und permitted under sub-paragraphs (a)-(d) (f) erlaubt sind, sofern der and (f)), securing Financial Indebtedness Nominalbetrag der durch diese the principal amount of which, when Sicherheiten besicherten aggregated, does not exceed at any time Finanzverbindlichkeit(en) kumulativ zu 15% of the Group’s total consolidated keiner Zeit 15 % der Bilanzsumme des assets (as reported in the then most Konzerns (wie im letzten verfügbaren recently available consolidated financial Konzernjahresabschluss ausgewiesen) statements). If at the time of its creation übersteigt. Wenn im Zeitpunkt der the respective Security Interest was in Bestellung eines Sicherheitsrechts diese compliance with the requirements Bestellung gemäß den Bestimmungen provided for sub-paragraph (e), any dieses Unterabschnittes (e) zulässig ist, decrease of the Group’s total wird nur aufgrund einer späteren consolidated assets after that time will Verringerung der Bilanzsumme des not lead to a breach of any such Konzerns der Fortbestand des requirements; and betreffenden Sicherheitsrechts nicht unzulässig; sowie

(f) Sicherungsrechte, welche nicht bereits (f) Security Interests (other than already durch einen der Unterabsätze (a)-(e) permitted under sub-paragraphs (a)-(e)), erlaubt sind, sofern der Nominalbetrag securing Financial Indebtedness the der durch diese Sicherheiten besicherten principal amount of which, when Finanzverbindlichkeit(en) kumulativ zu aggregated, does not exceed at any time keiner Zeit EUR 15.000.000 oder den EUR 15,000,000 or its equivalent in Gegenwert in anderen Währungen other currencies. überschreitet.

"Finanzverbindlichkeit" bezeichnet jede "Financial Indebtedness" means any present bestehende oder zukünftige Verbindlichkeit aus or future indebtedness for monies borrowed aufgenommenen Geldern mit Ausnahme von other than indebtedness created under any Verbindlichkeiten im Zusammenhang mit financial or operating lease and rental Finanzierungsleasing, Mietkaufverträgen und agreements whether or not certificated. Mietverträgen unabhängig davon, ob sie verbrieft ist oder nicht.

"Gruppe" bezeichnet die Emittentin und ihre "Group" means the Issuer and its Subsidiaries jeweiligen Tochtergesellschaften. from time to time.

"Tochtergesellschaft" bezeichnet einen "Subsidiary" means any entity whose financial Rechtsträger, dessen Abschluss aufgrund statements at any time are required by law or in gesetzlicher Vorgaben oder nach Maßgabe accordance with generally accepted accounting allgemein anerkannter principles to be fully consolidated with those of Rechnungslegungsgrundsätze zu einem the Issuer. beliebigen Zeitpunkt mit dem der Emittentin zu konsolidieren ist (Vollkonsolidierung).

(4) Garantie. Die HORNBACH (4) Guarantee. HORNBACH INTERNATIONAL INTERNATIONAL GmbH, (die "Garantin") GmbH (the "Guarantor") has given towards hat gemäß der Garantie vom Oktober 2019 (die the Principal Paying Agent for the benefit of the "Garantie") jeweils gegenüber der Noteholders the unconditional and irrevocable Hauptzahlstelle zugunsten der guarantee for the payment of principal and Anleihegläubiger die unbedingte und interest together with all other sums payable by unwiderrufliche Garantie für die Zahlung von the Issuer under these Terms and Conditions

16 Kapital, Zinsen und etwaigen sonstigen pursuant to a guarantee, dated October 2019 Beträgen, die nach diesen Anleihebedingungen (the "Guarantee"). von der Emittentin zu zahlen sind, übernommen.

(a) Die Garantie begründet unmittelbare, (a) The Guarantee constitutes direct, nicht besicherte und nicht nachrangige unsecured and unsubordinated Verpflichtungen der Garantin, die mit obligations of the Guarantor, ranking allen anderen gegenwärtigen und pari passu with all other present and zukünftigen nicht besicherten und nicht future unsecured and unsubordinated nachrangigen Verbindlichkeiten der obligations of the Guarantor, unless such Garantin zumindest im gleichen Rang obligations are accorded priority under stehen, soweit diesen Verbindlichkeiten mandatory provisions of statutory law. nicht durch zwingende gesetzliche Upon discharge of any payment Bestimmungen ein Vorrang eingeräumt obligation of the Guarantor subsisting wird. Mit der Erfüllung einer under the Guarantee in favour of any Zahlungsverpflichtung der Garantin Noteholder, the relevant guaranteed zugunsten eines Anleihegläubigers aus right of such Noteholder under these der Garantie erlischt zugleich das Terms and Conditions will cease to exist. jeweilige garantierte Recht des betreffenden Anleihegläubigers aus diesen Anleihebedingungen.

(b) Die Garantie stellt einen Vertrag (b) The Guarantee constitutes a contract in zugunsten der jeweiligen favour of the respective Noteholders as Anleihegläubiger als begünstigte Dritte third-party beneficiaries pursuant to gemäß § 328 Absatz 1 BGB dar, so dass § 328(1) of the German Civil Code ausschließlich die jeweiligen (Bürgerliches Gesetzbuch) so that only Anleihegläubiger die Erfüllung der the respective Noteholders will be Garantie unmittelbar von der Garantin entitled to claim performance of the verlangen und die Garantie unmittelbar Guarantee directly from the Guarantor gegen die Garantin durchsetzen können. and to enforce the Guarantee directly against the Guarantor.

§ 3 § 3 (Zinsen) (Interest)

(1) Zinssatz und Zinszahlungstage. Die (1) Rate of Interest and Interest Payment Dates. Schuldverschreibungen werden bezogen auf The Notes shall bear interest on their aggregate ihren Gesamtnennbetrag verzinst, und zwar ab principal amount at the rate of 3.250 per cent. dem 25. Oktober 2019 (der per annum from, and including, October 25, "Verzinsungsbeginn") (einschließlich) bis zum 2019 (the "Interest Commencement Date") to Tag der Rückzahlung (ausschließlich) mit but excluding, the date of redemption. Interest jährlich 3,250 %. Die Zinsen sind nachträglich shall be payable in arrear on October 25 in each am 25. Oktober eines jeden Jahres zu zahlen, year, commencing on October 25, 2020 (each erstmals am 25. Oktober 2020 (jeweils ein such date, an "Interest Payment Date"). "Zinszahlungstag").

(2) Ende des Zinslaufs. Falls die Emittentin die (2) Cessation of Interest Accrual. If the Issuer fails Schuldverschreibungen bei Fälligkeit nicht to redeem the Notes when due, interest shall einlöst, erfolgt die Verzinsung der continue to accrue beyond the due date Schuldverschreibungen vom Tag der Fälligkeit (including) to but excluding the date of the (einschließlich) bis zum Tag der tatsächlichen Rückzahlung der Schuldverschreibungen

17 (ausschließlich) in Höhe des gesetzlich actual redemption of the Notes at the default festgelegten Satzes für Verzugszinsen1. rate of interest established by law2.

(3) Berechnung der Zinsen für Teile von (3) Calculation of Interest for Partial Periods. Zeiträumen. Sind Zinsen für einen Zeitraum zu Where interest is to be calculated in respect of a berechnen, der kürzer als eine Zinsperiode ist period which is shorter than or equal to an oder einer Zinsperiode entspricht, so werden die Interest Period, the interest will be calculated on Zinsen auf der Grundlage der tatsächlichen the basis of the actual number of days elapsed Anzahl der Tage in dem jeweiligen Zeitraum ab in the relevant period, from, and including, the dem ersten Tag des jeweiligen Zeitraums first date in the relevant period to, but (einschließlich) bis zu dem letzten Tag des excluding, the last date of the relevant period, jeweiligen Zeitraums (ausschließlich) divided by the actual number of days in the berechnet, geteilt durch die Anzahl der Tage in Interest Period in which the relevant period falls der Zinsperiode, in die der jeweilige Zeitraum (including the first such day of the relevant fällt (einschließlich des ersten Tages der Interest Period but excluding the last day of the betroffenen Zinsperiode, aber ausschließlich relevant Interest Period). des letzten Tages der betroffenen Zinsperiode).

"Zinsperiode" bezeichnet den Zeitraum ab dem "Interest Period" means the period from and Verzinsungsbeginn (einschließlich) bis zu dem including the Interest Commencement Date to, ersten Zinszahlungstag (ausschließlich) und but excluding, the first Interest Payment Date danach ab dem jeweiligen Zinszahlungstag and thereafter from and including each relevant (einschließlich) bis zu dem nächstfolgenden Interest Payment Date to but excluding the next Zinszahlungstag (ausschließlich). following Interest Payment Date.

§ 4 § 4 (Rückzahlung, Rückkauf) (Redemption, Repurchase)

(1) Soweit nicht zuvor bereits ganz oder teilweise (1) Unless previously redeemed in whole or in part zurückgezahlt oder angekauft und entwertet, or purchased and cancelled, each Note shall be wird jede Schuldverschreibung am 25. Oktober redeemed at its Principal Amount on 2026 (der "Endfälligkeitstag") zu ihrem October 25, 2026 (the "Maturity Date"). Nennbetrag zurückgezahlt.

(2) Rückkauf. Die Emittentin kann jederzeit im (2) Purchases. The Issuer is entitled to purchase Markt oder auf andere Weise and resell Notes at any time in the market or Schuldverschreibungen ankaufen und otherwise. verkaufen.

(3) Vorzeitige Rückzahlung nach Wahl der (3) Early redemption at the option of the Issuer. Emittentin. Die Emittentin ist berechtigt, die The Issuer may, upon giving notice of Schuldverschreibungen (insgesamt und nicht redemption in accordance with § 4(6), call the nur teilweise) mit Wirkung zu jedem Tag Notes for early redemption (in whole but not in während des Zeitraums ab dem 25. Juli 2026 part) with effect as of any date during the period (einschließlich) bis zum Endfälligkeitstag from and including July 25, 2026 to but (ausschließlich) durch Erklärung gemäß § 4(6) excluding the Maturity Date. In the case such vorzeitig zurückzuzahlen. Im Falle einer notice is given, the Issuer will redeem the

1 Der gegenwärtig geltende gesetzliche Verzugszinssatz beträgt für das Jahr fünf Prozentpunkte über dem von der Deutsche Bundesbank von Zeit zu Zeit veröffentlichten Basiszinssatz, §§ 288 Absatz 1, 247 Absatz 1 Bürgerliches Gesetzbuch. 2 The default rate of interest established by law is currently five percentage points above the base rate of interest (Basiszinssatz) published by Deutsche Bundesbank from time to time, §§ 288 para. 1, 247 para. 1 German Civil Code (Bürgerliches Gesetzbuch).

18 solchen Erklärung hat die Emittentin die remaining Notes at the Principal Amount plus Schuldverschreibungen an dem von der any accrued and unpaid interest on the Notes to Emittentin in der Mitteilung festgelegten but excluding the date of redemption on the Rückzahlungstermin zum Nennbetrag redemption date specified by the Issuer in the zuzüglich der bis zum Tag der Rückzahlung in notice. Bezug auf die Schuldverschreibungen aufgelaufenen, aber noch nicht bezahlten Zinsen zurückzuzahlen.

(4) Vorzeitige Rückzahlung durch die Emittentin (4) Clean-up Call. The Issuer may, upon giving bei geringem ausstehenden Gesamtnennbetrag. notice of redemption in accordance with § 4(6), Die Emittentin ist berechtigt, die call the Notes for early redemption (in whole Schuldverschreibungen (insgesamt und nicht but not in part) at any time if 85 per cent. or nur teilweise) jederzeit durch Erklärung gemäß more of the aggregate principal amount of the § 4(6) vorzeitig zurückzuzahlen, wenn 85 % Notes initially issued have been redeemed or oder mehr des Gesamtnennbetrags der repurchased and cancelled. In the case such ursprünglich begebenen notice is given, the Issuer will redeem the Schuldverschreibungen zurückgezahlt oder remaining Notes at the Principal Amount plus zurückgekauft und entwertet wurden. Im Falle any accrued and unpaid interest on the Notes to einer solchen Erklärung hat die Emittentin die but excluding the date of redemption on the Schuldverschreibungen an dem von der redemption date specified by the Issuer in the Emittentin in der Mitteilung festgelegten notice. Rückzahlungstermin zum Nennbetrag zuzüglich der bis zum Tag der Rückzahlung in Bezug auf die Schuldverschreibungen aufgelaufenen, aber noch nicht bezahlten Zinsen zurückzuzahlen.

(5) Vorzeitige Rückzahlung durch die Emittentin (5) Early Redemption by the Issuer for Reasons of aus steuerlichen Gründen. Die Emittentin ist Taxation. The Issuer may, upon giving notice of berechtigt, die Schuldverschreibungen redemption in accordance with § 4(6), call the (insgesamt und nicht nur teilweise) jederzeit Notes for early redemption (in whole but not in durch Erklärung gemäß § 4(6) vorzeitig part) at any time if as a result of any change in, zurückzuzahlen, wenn die Emittentin infolge or amendment to, the laws or regulations of the einer Änderung oder Ergänzung der Steuer- Federal Republic of Germany or any political oder Abgabengesetze und -vorschriften der subdivision or taxing authority or any other Bundesrepublik Deutschland oder einer ihrer agency of or in the Federal Republic of Gebietskörperschaften oder zur Erhebung von Germany that has power to tax, or any change Steuern berechtigten Behörden oder sonstigen in, or amendment to, an official interpretation or Stellen oder infolge einer Änderung oder application of such laws or regulations, which Ergänzung der Anwendung oder der amtlichen amendment or change is effective on or after the Auslegung dieser Gesetze und Vorschriften date on which the Notes were issued, the Issuer (vorausgesetzt, diese Änderung oder Ergänzung is required to pay Additional Amounts (as wird am oder nach dem Tag, an dem die defined in § 6) on the next succeeding Interest Schuldverschreibungen begeben werden, Payment Date, and this obligation cannot be wirksam) am nächstfolgenden Zinszahlungstag avoided by the use of reasonable measures zur Zahlung von Zusätzlichen Beträgen (wie in available to the Issuer. In the case such notice is § 6 definiert) verpflichtet sein wird und diese given, the Issuer will redeem the remaining Verpflichtung nicht durch das Ergreifen der Notes at the Principal Amount plus any accrued Emittentin zur Verfügung stehender zumutbarer and unpaid interest on the Notes to but Maßnahmen vermieden werden kann. Im Falle excluding the date of redemption on the einer solchen Erklärung hat die Emittentin die redemption date specified by the Issuer in the Schuldverschreibungen an dem von der notice. No such redemption may be made

19 Emittentin in der Mitteilung festgelegten (i) earlier than 90 days prior to the earliest date Rückzahlungstermin zum Nennbetrag on which the Issuer would be obliged to pay zuzüglich der bis zum Tag der Rückzahlung in such Additional Amounts were a payment in Bezug auf die Schuldverschreibungen respect of the Notes then due, or (ii) if at the aufgelaufenen, aber noch nicht bezahlten time such redemption is made, such obligation Zinsen zurückzuzahlen. Die Rückzahlung darf to pay such Additional Amounts does not nicht (i) früher als 90 Tage vor dem remain in effect. frühestmöglichen Termin erfolgen, an dem die Emittentin verpflichtet wäre, solche Zusätzlichen Beträge zu zahlen, falls eine Zahlung auf die Schuldverschreibungen dann fällig sein würde, oder (ii) erfolgen, wenn zu dem Zeitpunkt, zu dem die Rückzahlung erfolgt, die Verpflichtung zur Zahlung von zusätzlichen Beträgen nicht mehr besteht.

(6) Erklärung der vorzeitigen Rückzahlung. Die (6) Notice of early redemption. The Issuer may call Emittentin kann die Erklärung der vorzeitigen the Notes for early redemption pursuant to Rückzahlung der Schuldverschreibungen § 4(3), § 4(4) or § 4(5) by publishing a notice to gemäß § 4(3), § 4(4) oder § 4(5) durch the Noteholders in accordance with § 13 subject Veröffentlichung einer Mitteilung an die to observing a notice period of not less than 30 Anleihegläubiger gemäß § 13 unter Einhaltung nor more than 60 days prior to the specified einer Frist von nicht weniger als 30 und nicht redemption date. mehr als 60 Tagen vor dem Rückzahlungstag erklären.

Diese Mitteilung hat den Rückzahlungstermin This notice must specify the redemption date festzulegen sowie die Tatsachen anzugeben, die and state the facts which establish the right of das Kündigungsrecht der Emittentin begründen. the Issuer to redeem the Notes.

(7) Vorzeitige Rückzahlung nach Wahl der (7) Early Redemption at the Option of the Anleihegläubiger infolge eines Noteholders following a Change of Control Kontrollwechselereignisses. Event.

(a) Tritt ein Kontrollwechselereignis ein, (a) If a Change of Control Event occurs (i) verpflichtet sich die Emittentin, (i) the Issuer undertakes to (x) determine unverzüglich (x) den Wahl- the Optional Redemption Date (as Rückzahlungstag (wie nachstehend defined below) and (y) give notice to the definiert) zu bestimmen und (y) das Noteholders in accordance with § 13 and Kontrollwechselereignis und den Wahl- to the Principal Paying Agent of the Rückzahlungstag den Anleihegläubigern Change of Control Event and the durch Mitteilung gemäß § 13 (die Optional Redemption Date (the "Kontrollwechselereignis- "Change of Control Event Notice"), in Mitteilung") und der Hauptzahlstelle each case without undue delay bekannt zu machen und (ii) hat jeder (unverzüglich), and (ii) each Noteholder Anleihegläubiger das Recht (sofern will have the right (unless, prior to the nicht die Emittentin, bevor die giving of the Put Notice referred to nachstehend beschriebene below, the Issuer gives notice to redeem Ausübungserklärung gemacht wird, die the Notes in accordance with § 4(3), Rückzahlung der § 4(4) or § 4(5)) to declare, on giving not Schuldverschreibungen nach § 4(3), less than 10 days' notice, all or some § 4(4) oder § 4(5) erklärt hat), mit einer only of his Notes due at their Principal Frist von mindestens 10 Tagen mit Amount together with interest accrued Wirkung zum Wahl-Rückzahlungstag to, but excluding, the Optional

20 alle oder einzelne seiner Redemption Date, which notice shall Schuldverschreibungen am Wahl- take effect on the Optional Redemption Rückzahlungstag zum Nennbetrag, Date. zuzüglich aufgelaufener Zinsen bis zum Wahl-Rückzahlungstag (ausschließlich) fällig zu stellen.

Der Begriff "beherrschen" hat die in To "control" (beherrschen) has the § 17 AktG festgelegte Bedeutung. meaning given to it in § 17 of the German Stock Corporation Act (AktG).

Ein "Kontrollwechsel" tritt ein, wenn A "Change of Control" will occur if a eine andere Person als die Hornbach person other than Hornbach Familientreuhandgesellschaft mbH oder Familientreuhandgesellschaft mbH or mehrere andere Personen (die several persons ("Relevant Person(s)") "relevante(n) Person(en)"), die im acting in concert as defined in the Sinne des WpÜG abgestimmt handeln, German Securities Purchase and mehr als 50 % der Stimmrechte der Takeover Act (WpÜG) acquires more Emittentin erwirbt oder auf andere than 50 per cent. of the voting rights of Weise Kontrolle über die Emittentin the Issuer or otherwise gains control erlangt. over the Issuer.

Ein "Kontrollwechselereignis" tritt ein, A "Change of Control Event" occurs if wenn ein Kontrollwechsel (wie a Change of Control (as defined above) vorstehend definiert) eintritt und am occurs and at the end of the Change of Ende des Kontrollwechselzeitraums Control Period no Rating Agency has keine Ratingagentur ein Rating von assigned or continued to assign a Ba1/BB+ oder besser für die solicited long-term credit rating of langfristigen Verbindlichkeiten der Ba1/BB+ or better to the Issuer or a Emittentin oder für die unbesicherten, solicited rating of Ba1/BB+ to the senior nicht-nachrangigen unsecured debt securities of the Issuer. Fremdkapitalwertpapiere der Emittentin vergeben oder bestehen lassen hat.

Der "Kontrollwechselzeitraum" The "Change of Control Period"

(i) beginnt (x) mit der öffentlichen (i) commences on the earlier of Bekanntmachung oder Erklärung (x) any public announcement or der Emittentin oder einer statement of the Issuer or any relevanten Person des möglichen Relevant Person relating to any Kontrollwechsels, spätestens potential Change of Control or jedoch (y) an dem Tag der ersten (y) the date of the first public öffentlichen Bekanntmachung announcement of the Change of des Eintritts des Control and Kontrollwechsels und

(ii) endet am späteren der folgenden (ii) ends on the later of (x) the lapse Tage: (x) mit Ablauf von of 90 days after the Change of 90 Tagen nach dem Eintritt des Control and (y), if within such Kontrollwechsels oder (y), falls period any Rating Agency has eine Ratingagentur während publicly announced that it has put dieses Zeitraums öffentlich the ratings assigned by it under ankündigt, dass sie die von ihr consideration for ratings review, vergebenen Ratings einer the earlier of (a) the end of such Überprüfung für Zwecke eines period for which the ratings are

21 Ratings Review unterzieht, under consideration and (b) the frühestens (a) mit Ablauf des lapse of 60 days after the public Zeitraums, während dessen die announcement of such Ratings überprüft werden, (b) consideration. spätestens jedoch mit Ablauf von 60 Tagen nach der öffentlichen Ankündigung der Überprüfung.

"Ratingagentur" bezeichnet S&P "Rating Agency" means S&P Global Global Ratings Europe Limited Ratings Europe Limited ("S&P"), ("S&P"), Moody's Investors Services Moody's Investors Services Limited Limited ("Moody's"), Fitch Ratings Ltd. ("Moody's"), Fitch Ratings Ltd. ("Fitch") oder eine ihrer jeweiligen ("Fitch") or any of their respective Nachfolgegesellschaften, soweit sie ein successors to the extent such rating beauftragtes Rating für die langfristigen agency has provided a solicited long- Verbindlichkeiten der Emittentin oder term credit rating to the Issuer or a für die unbesicherten, nicht- solicited rating to the senior unsecured nachrangigen Fremdkapitalwertpapiere debt securities of the Issuer. der Emittentin vergeben haben.

"Wahl-Rückzahlungstag" bezeichnet "Optional Redemption Date" means den von der Emittentin in der the date fixed by the Issuer in the Change Kontrollwechselereignis-Mitteilung of Control Event Notice, which (i) must festgelegten Tag, der (i) ein be a Business Day (as defined in § 5(3)) Geschäftstag (wie in § 5(3) definiert) and (ii) must fall not less than 45 and not sein muss und (ii) nicht weniger als 45 more than 60 days after publication of und nicht mehr als 60 Tage nach the Change of Control Event Notice. Bekanntmachung der Kontrollwechselereignis-Mitteilung liegen darf.

(b) Die wirksame Ausübung des Rechts auf (b) The valid exercise of the option to Rückzahlung für eine require the redemption of a Note under Schuldverschreibung nach Maßgabe this § 4(7) is conditional upon the dieses § 4(7) setzt voraus, dass der Noteholder in observation of the notice Anleihegläubiger unter Beachtung der period provided in § 4(7)(a) Kündigungsfrist gemäß § 4(7)(a)

(i) bei der angegebenen (i) submitting at the specified office Geschäftsstelle der of the Principal Paying Agent a Hauptzahlstelle eine duly signed and completed notice ordnungsgemäß ausgefüllte und of exercise in the form (for the unterzeichnete time being current) obtainable Ausübungserklärung einreicht, from the specified office of the die in ihrer jeweils maßgeblichen Principal Paying Agent (a "Put Form bei der angegebenen Notice"); and Geschäftsstelle der Hauptzahlstelle erhältlich ist (die "Ausübungserklärung"); und

(ii) seine Schuldverschreibung(en), (ii) delivering to the Principal Paying für die das Recht ausgeübt Agent the Note(s) for which the werden soll, an die right shall be exercised, by Hauptzahlstelle liefert, und zwar transferring (book-entry transfer)

22 durch Lieferung (Umbuchung) the Notes to the account of the der Schuldverschreibungen auf Principal Paying Agent with the das in der Ausübungserklärung Clearing System specified in the angegebene Konto der Put Notice. Hauptzahlstelle beim Clearingsystem.

Eine einmal abgegebene A Put Notice, once given, shall be Ausübungserklärung ist unwiderruflich. irrevocable. The Put Notice shall, among Die Ausübungserklärung hat unter other things: anderem die folgenden Angaben zu enthalten:

– Name und Anschrift des – state the name and address of the ausübenden Anleihegläubigers; exercising Noteholder;

– die Zahl der – specify the number of Notes with Schuldverschreibungen, für die respect to which the right under das Recht gemäß diesem § 4(7) this § 4(7) shall be exercised; and ausgeübt werden soll; und

– die Bezeichnung eines auf Euro – designate a Euro denominated lautenden Bankkontos des bank account of the Noteholder to Anleihegläubigers, auf das auf which any payments on the Notes die Schuldverschreibungen are to be made. zahlbare Beträge geleistet werden sollen.

(c) Die Emittentin wird Zahlungen in Bezug (c) The Issuer will make any payment in auf solchermaßen gelieferte respect of any Note so delivered to the Schuldverschreibung(en) am Wahl- Euro-account of the Noteholder Rückzahlungstag auf das Euro- specified in the Put Notice on the Bankkonto des Anleihegläubigers, Optional Redemption Date. welches dieser in der Ausübungserklärung ordnungsgemäß bezeichnet hat, überweisen.

§ 5 § 5 (Zahlungen) (Payments)

(1) Zahlungen auf Kapital und Zinsen. Zahlungen (1) Payment of Principal and Interest. Payment of auf Kapital und Zinsen in Bezug auf die principal and interest in respect of Notes shall Schuldverschreibungen erfolgen in Euro über be made in Euro to the Principal Paying Agent die Hauptzahlstelle zur Weiterleitung an das for on-payment to the Clearing System or to its Clearingsystem oder dessen Order zur order for credit to the accounts of the relevant Gutschrift auf den Konten der jeweiligen account holders of the Clearing System. Kontoinhaber des Clearingsystems.

(2) Zahlungsweise. Die Emittentin wird durch (2) Manner of Payment. The Issuer shall be Leistung der Zahlung an das Clearingsystem discharged by payment to, or to the order of, the oder dessen Order von ihrer Zahlungspflicht Clearing System. befreit.

(3) Geschäftstagekonvention. Fällt der (3) Business Day Convention. If the date for Fälligkeitstermin einer Zahlung auf eine payment of any amount in respect of any Note Schuldverschreibung auf einen Tag, der kein is not a Business Day, then the Noteholders

23 Geschäftstag ist, so hat der Anleihegläubiger shall not be entitled to payment until the next keinen Anspruch auf Zahlung vor dem nächsten such day that is a Business Day and shall not be Geschäftstag. Der Anleihegläubiger ist nicht entitled to further interest or other payment in berechtigt, weitere Zinsen oder sonstige respect of such delay. For these purposes, Zahlungen aufgrund dieser Verspätung zu "Business Day" means any day which is a day verlangen. "Geschäftstag" bezeichnet einen (other than a Saturday or a Sunday) on which Tag (außer einem Samstag oder Sonntag), an the Clearing System as well as all parts of the dem das Clearingsystem sowie alle für die Trans-European Automated Real-time Gross Abwicklung von Zahlungen in Euro settlement Express Transfer (TARGET 2) wesentlichen Bereiche des Trans-European system relevant for the settlement of payments Automated Real-time Gross settlement Express made in Euro are operational. Transfer (TARGET 2) Systems betriebsbereit sind.

(4) Bezugnahmen auf Kapital und Zinsen. (4) References to Principal and Interest. Reference Bezugnahmen in diesen Anleihebedingungen in these Terms and Conditions to principal or auf Kapital oder Zinsen auf interest in respect of the Notes shall be deemed Schuldverschreibungen schließen den to include, as applicable, the Principal Amount Nennbetrag (wie in § 1(1) definiert) sowie (as defined in § 1(1)) and any Additional sämtliche gemäß § 6 zahlbaren Zusätzlichen Amounts which may be payable under § 6. Beträge ein.

§ 6 § 6 (Steuern) (Taxation)

Sämtliche auf die Schuldverschreibungen durch die All amounts to be paid by the Issuer in respect of the Emittentin zu zahlenden Beträge werden ohne Notes will be paid free and clear of, and without Einbehalt oder Abzug von Steuern, Abgaben, withholding or deduction for, any taxes, duties, Festsetzungen oder behördlicher Gebühren jedweder assessments or governmental charges of whatever Art ("Steuern") geleistet, die von der Bundesrepublik nature ("Taxes") imposed, levied, collected, withheld Deutschland oder einer ihrer Gebietskörperschaften or assessed by the Federal Republic of Germany or any oder zur Erhebung von Steuern berechtigten Behörden political subdivision or any authority or any other oder sonstigen Stellen auferlegt, erhoben, eingezogen, agency of or in the Federal Republic of Germany that einbehalten oder festgesetzt werden, es sei denn, ein has power to tax, unless such withholding or deduction solcher Einbehalt oder Abzug ist gesetzlich is required by law. If the Issuer is required by law to vorgeschrieben. Sofern die Emittentin zu einem make such withholding or deduction, the Issuer will solchen Einbehalt oder Abzug gesetzlich verpflichtet pay such additional amounts (the "Additional ist, wird die Emittentin zusätzliche Beträge (die Amounts") to the Noteholders as the Noteholders "Zusätzlichen Beträge") an die Anleihegläubiger would have received if no such withholding or zahlen, so dass die Anleihegläubiger die Beträge deduction had been required, except that no such erhalten, die sie ohne den betreffenden Einbehalt oder Additional Amounts will be payable for any such Abzug erhalten hätten. Solche Zusätzlichen Beträge Taxes in respect of any Note: sind jedoch nicht zahlbar wegen solcher Steuern in Bezug auf Schuldverschreibungen,

(a) die wegen einer gegenwärtigen oder früheren (a) which are to be withheld or deducted by reason Verbindung des betreffenden of the relevant Noteholder having, or having Anleihegläubigers zu der Bundesrepublik had, some connection with the Federal Republic Deutschland, die nicht nur aus der bloßen of Germany other than the mere holding of that Inhaberschaft der Schuldverschreibungen Note; or besteht, einzubehalten oder abzuziehen sind; oder

24 (b) deren Einbehalt oder Abzug ein (b) the withholding or deduction of which could Anleihegläubiger oder ein in dessen Namen have been avoided by a Noteholder or a third handelnder Dritter hätte vermeiden können, party acting on its behalf, including, but not insbesondere durch Vorlage eines Formulars limited to, by presenting any form or certificate oder einer Urkunde und/oder durch Abgabe and/or making a declaration of non-residence or einer Nichtansässigkeitserklärung oder similar claim for exemption or refund; or Inanspruchnahme einer vergleichbaren Ausnahme oder Geltendmachung eines Befreiungsanspruches oder eines Erstattungsanspruches; oder

(c) die aufgrund (i) einer Richtlinie oder (c) which are to be withheld or deducted pursuant Verordnung der Europäischen Union oder (ii) to (i) any European Union Directive or einer zwischenstaatlichen Vereinbarung, eines Regulation, or (ii) any international treaty, zwischenstaatlichen Abkommens oder einer agreement or understanding relating to such zwischenstaatlichen Verständigung über deren taxation and to which the Federal Republic of Besteuerung, an der die Bundesrepublik Germany or the European Union is a party, or Deutschland oder die Europäische Union (iii) any provision of law implementing, or beteiligt ist, oder (iii) einer gesetzlichen complying with, or introduced to conform with, Vorschrift, die diese Richtlinie, Verordnung, such Directive, Regulation, treaty, agreement or Vereinbarung, Verständigung oder dieses understanding. Abkommen umsetzt oder befolgt, abzuziehen oder einzubehalten sind.

Die Emittentin ist nicht verpflichtet, zusätzliche In any event, the Issuer will not have any obligation to Beträge in Bezug auf einen Einbehalt oder Abzug von pay additional amounts deducted or withheld by the Beträgen zu zahlen, die gemäß Sections 1471 bis 1474 Issuer, the relevant paying agent or any other party in des U.S. Internal Revenue Code (in der jeweils relation to any withholding or deduction of any geltenden Fassung oder gemäß amounts required by the rules of U.S. Internal Revenue Nachfolgebestimmungen), gemäß zwischenstaatlicher Code Sections 1471 through 1474 (or any amended or Abkommen, gemäß den in einer anderen successor provisions), pursuant to any inter- Rechtsordnung in Zusammenhang mit diesen governmental agreement, or implementing legislation Bestimmungen erlassenen Durchführungsvorschriften adopted by another jurisdiction in connection with oder gemäß mit dem U.S. Internal Revenue Service these provisions, or pursuant to any agreement with the geschlossenen Verträgen von der Emittentin, der U.S. Internal Revenue Service ("FATCA jeweiligen Zahlstelle oder einem anderen Beteiligten Withholding") or indemnify any investor in relation to abgezogen oder einbehalten wurden ("FATCA- any FATCA Withholding. Steuerabzug") oder Anleger in Bezug auf einen FATCA-Steuerabzug schadlos zu halten.

§ 7 § 7 (Vorlegungsfrist) (Presentation Period)

Die Vorlegungsfrist gemäß § 801 Absatz 1 Satz 1 BGB The period for presentation provided in § 801(1)(1) of wird für die Schuldverschreibungen auf zehn Jahre the German Civil Code (Bürgerliches Gesetzbuch) will reduziert. be reduced to 10 years for the Notes.

§ 8 § 8 (Verpflichtungserklärungen) (Covenants)

Die HORNBACH Baumarkt AG verpflichtet sich, dass HORNBACH Baumarkt AG undertakes that, after the nach dem Begebungstag weder die HORNBACH issue date of the Notes, it will not, and will procure that Baumarkt AG noch eine ihrer Tochtergesellschaften none of its Subsidiaries will, sell or otherwise transfer im Rahmen einer oder mehrerer Transaktionen, assets of the Group in one or more transactions to one

25 Vermögenswerte der Gruppe veräußert oder or more natural or legal persons, with the exception of anderweitig auf eine oder mehrere natürliche oder sales or transfers to a Subsidiary. juristische Personen überträgt, mit Ausnahme von Veräußerungen oder Übertragungen an eine Tochtergesellschaft.

Dies gilt nicht für Veräußerungen oder Übertragungen This undertaking shall not apply to sales or transfers of von Vermögenswerten assets

(a) im Zuge der normalen Geschäftstätigkeit der (a) in the ordinary course of business of the Group; Gruppe, oder or

(b) sofern diese zu marktüblichen Konditionen (b) by way of a transaction that is on arm's length erfolgen. commercial terms.

Für die Zwecke von diesem § 8 besteht eine For the purposes of this § 8 there shall be an unwiderlegliche Vermutung für das Vorliegen irrebuttable presumption that the relevant asset marktüblicher Konditionen, wenn eine Fairness disposal is on arm's length commercial terms if a Opinion einer Wirtschaftsprüfungsgesellschaft oder fairness opinion issued by an auditing company or an einer Investmentbank von internationaler Reputation investment bank of international reputation confirms die Angemessenheit der Gegenleistung für die the appropriateness of the consideration for the sale of Veräußerung der Vermögensgegenstände bestätigt. the assets.

Im Fall einer Veräußerung von In the event of a sale of assets of the Group outside the Vermögensgegenständen der Gruppe außerhalb der ordinary course of the business of the Group, normalen Geschäftstätigkeit der Gruppe wird die HORNBACH Baumarkt AG (acting directly or HORNBACH Baumarkt AG (direkt oder indirekt indirectly through any of its subsidiaries) shall, within durch eine ihrer Tochtergesellschaften) 90 % der 360 days after receipt of the consideration from such Netto-Gegenleistung (Brutto-Gegenleistung abzüglich asset disposal, use 90 per cent. of the net consideration Transaktionskosten) innerhalb von 360 Tagen nach (gross consideration less transaction costs), at its Erhalt der Gegenleistung nach ihrer Wahl wie folgt option: verwenden:

(A) um Verbindlichkeiten (einschließlich etwaiger (A) to purchase or otherwise redeem any aufgelaufener Zinsen) der HORNBACH indebtedness (including accrued interest, if any) Baumarkt AG oder einer Tochtergesellschaft zu of HORNBACH Baumarkt AG or any kaufen oder zurückzuzahlen, die mit den Subsidiary ranking at least pari passu with the Schuldverschreibungen zumindest im gleichen Notes; or Rang stehen; oder

(B) um alle oder im Wesentlichen alle (B) to acquire all or substantially all of the assets of, Vermögensgegenstände oder Aktienkapital or any capital stock of, another Permitted eines anderen Erlaubten Geschäfts (wie Business (as defined below); or nachstehend definiert) zu erwerben; oder

(C) um Investitionen zu tätigen; oder (C) to make a capital expenditure; or

(D) um Barmittel oder Barwerte für die unter (A) bis (D) to hold cash or cash equivalents on the balance (C) genannten Zwecke vorzuhalten; oder sheet for use under clauses (A) to (C) above; or

(E) für jedwede Kombination der vorgenannten (E) any combination of the foregoing. Optionen.

"Erlaubtes Geschäft" ist (i) jede Geschäftstätigkeit, "Permitted Business" means (i) any business, services Dienstleistung oder Aktivität, in der die HORNBACH or activities engaged in by HORNBACH Baumarkt Baumarkt AG oder einer ihrer Tochtergesellschaften AG or any of its Subsidiaries on the issue date of the bereits zum Tag der Begebung der Notes; and (ii) any businesses, services and activities

26 Schuldverschreibungen tätig war; und (ii) jede that are related, complementary, incidental, ancillary or Geschäftstätigkeit, Dienstleistung oder Aktivität, die similar to any of the foregoing, or are extensions or mit den vorgenannten Tätigkeiten im Zusammenhang developments of any thereof. stehen, mit diesen zusammenhängen, diese ergänzen, unterstützen, diesen ähnlich sind oder die eine Erweiterung oder Entwicklung derselben darstellen.

§ 9 § 9 (Kündigung) (Events of Default)

(1) Kündigungsgründe. Jeder Anleihegläubiger ist (1) Events of Default. Each Noteholder shall be berechtigt, seine Schuldverschreibungen zu entitled to declare his Notes due and demand kündigen und deren sofortige Rückzahlung zum immediate redemption thereof at their principal Nennbetrag zuzüglich bis zum Tag der amount together with interest accrued to but vorzeitigen Rückzahlung (ausschließlich) excluding the date of redemption if: aufgelaufener Zinsen zu verlangen, falls:

(a) Kapital oder Zinsen nicht innerhalb von (a) principal or interest is not paid within sieben Geschäftstagen ab dem seven Business Days from the relevant betreffenden Fälligkeitstermin gezahlt due date; or sind; oder

(b) die Emittentin oder die Garantin eine (b) the Issuer or the Guarantor, as the case sonstige Verpflichtung aus den may be, fails duly to perform any other Schuldverschreibungen oder aus der obligation under the Notes or the Garantie (einschließlich der Guarantee, as the case may be, Verpflichtungserklärungen gemäß § 8) (including, for the avoidance of doubt, nicht oder schlecht erfüllt, es sei denn, the covenants set out in § 8) unless the diese Unterlassung kann geheilt werden failure to comply is capable of remedy is und wird binnen zehn Geschäftstagen remedied within ten Business Days of nachdem die Hauptzahlstelle hierüber the Principal Paying Agent having eine Benachrichtigung von einem received notice thereof from a Anleihegläubiger erhalten hat geheilt; Noteholder; or oder

(c) Drittkündigung (c) Cross Acceleration

(i) eine andere (i) any other Financial Indebtedness Finanzverbindlichkeit der of the Issuer or any Subsidiary Emittentin oder einer (except financial indebtedness Tochtergesellschaft owed to other members of the (ausgenommen Group) is not paid when due or Finanzverbindlichkeiten within any originally applicable gegenüber anderen grace period; or Gesellschaften der Gruppe) bei Fälligkeit nicht bzw. nicht innerhalb einer etwaigen Nachfrist bezahlt wird; oder

(ii) eine andere (ii) any other Financial Indebtedness Finanzverbindlichkeit der of the Issuer or any Subsidiary Emittentin oder einer (other than any Financial Tochtergesellschaft Indebtedness owed to another (ausgenommen member of the Group) is declared Finanzverbindlichkeiten to be, or otherwise becomes, due

27 gegenüber anderen and payable prior to its specified Gesellschaften der Gruppe) vor maturity as a result of an event of dem vorgesehenen default (howsoever defined); Fälligkeitstermin aufgrund des Vorliegens einer Nichterfüllung oder eines Verzuges (unabhängig davon, wie eine solche bzw. ein solcher definiert ist) vorzeitig fällig gestellt wird oder anderweit vorzeitig fällig wird;

vorausgesetzt, dass die in § 9(1)(c)(i) provided that the events mentioned in und (ii) genannten Kündigungsgründe § 9(1)(c)(i) and (ii) have not been cured nicht vor Ausübung des Rechts geheilt before the right is exercised and the wurden und der Gesamtbetrag der unter aggregate amount of Financial § 9(1)(c)(i) und/oder (ii) fallenden Indebtedness falling within § 9(1)(c)(i) Finanzverbindlichkeiten mindestens and/or (ii) above equals or exceeds dem Betrag von EUR 20.000.000 (oder EUR 20,000,000 (or its equivalent in dessen entsprechenden Gegenwert in any other currency or currencies); einer oder mehreren anderen Währung(en)) entspricht oder diesen übersteigt;

(d) die Emittentin oder eine Wesentliche (d) the Issuer or any Material Subsidiary Tochtergesellschaft ihre announces its inability to meet its Zahlungsunfähigkeit bekannt gibt oder financial obligations or ceases its ihre Zahlungen allgemein einstellt; oder payments generally; or

(e) ein zuständiges Gericht ein (e) a competent court opens insolvency Insolvenzverfahren gegen die Emittentin proceedings against the Issuer or any oder eine Wesentliche Material Subsidiary or the Issuer or any Tochtergesellschaft eröffnet, oder die Material Subsidiary applies for or Emittentin oder eine Wesentliche institutes such proceedings, or a third Tochtergesellschaft ein solches party applies for insolvency proceedings Verfahren einleitet oder beantragt, oder against the Issuer or any Material ein Dritter ein Insolvenzverfahren gegen Subsidiary (other than HORNBACH die Emittentin oder eine Wesentliche Centrala SRL) and such proceedings are Tochtergesellschaft (ausgenommen not discharged or stayed within 60 days; HORNBACH Centrala SRL) beantragt or und ein solches Verfahren nicht innerhalb einer Frist von 60 Tagen aufgehoben oder ausgesetzt worden ist; oder

(f) die Emittentin oder die Garantin in (f) the Issuer or the Guarantor goes into Liquidation tritt, es sei denn, dies liquidation unless in connection with a geschieht im Zusammenhang mit einer merger or other form of combination Verschmelzung oder einer anderen Form with another company and such des Zusammenschlusses mit einer company assumes all obligations anderen Gesellschaft und diese contracted by the Issuer in connection Gesellschaft übernimmt alle with the Notes or by the Guarantor in Verpflichtungen, die die Emittentin im connection with the Guarantee and has Zusammenhang mit diesen equity in at least the same amount; or Schuldverschreibungen bzw. die

28 Garantin im Zusammenhang mit der Garantie eingegangen ist und verfügt über Eigenkapital in mindestens derselben Höhe; oder

(g) vorbehaltlich ihrer Bedingungen die (g) subject to its terms and conditions, the Garantie nicht vollumfänglich wirksam Guarantee is not in full force and effect. ist.

"Wesentliche Tochtergesellschaft" bezeichnet "Material Subsidiary" means any Subsidiary jede Tochtergesellschaft, deren EBITDA, whose EBITDA, revenues or total fixed and Umsatz oder Summe des Anlage- und current assets represent, 3 per cent. or more of Umlaufvermögens gemessen am konsolidierten any of the consolidated EBITDA, revenues or EBIDTA, konsolidierten Umsatz bzw. der total fixed and current assets, respectively, of Summe des Anlage- und Umlaufvermögens der the Group. Gruppe mindestens 3 % ausmacht.

(2) Heilung. Das Kündigungsrecht erlischt, falls (2) Cure. The right to declare Notes due shall der Kündigungsgrund vor Ausübung des Rechts terminate if the situation giving rise to it has geheilt wurde. been cured before the right is exercised.

(3) Kündigungserklärung. Eine Kündigung gemäß (3) Notice of default. Any notice of default in § 9(1) ist in Textform in deutscher oder accordance with § 9(1) above shall be made by englischer Sprache gegenüber der means of a declaration in the German or English Hauptzahlstelle zu erklären. Der language in text form delivered to the Principal Kündigungserklärung ist ein Nachweis Paying Agent together with evidence that such beizufügen, aus dem sich ergibt, dass der Noteholder at the time of such notice is a holder betreffende Anleihegläubiger zum Zeitpunkt of the relevant Notes by means of a certificate der Abgabe der Benachrichtigung Inhaber der of his depositary bank in accordance with betreffenden Schuldverschreibung ist. Der § 15(4) or in any other appropriate manner. Nachweis kann durch eine Bescheinigung der Depotbank gemäß § 15(4) oder auf andere geeignete Weise erbracht werden.

§ 10 § 10 (Zahlstellen) (Paying Agents)

(1) Bestellung. Die Emittentin hat die (1) Appointment. The Issuer has appointed Commerzbank Aktiengesellschaft, Commerzbank Aktiengesellschaft, Kaiserstraße 16 (Kaiserplatz), 60311 Frankfurt Kaiserstraße 16 (Kaiserplatz), 60311 Frankfurt am Main, Deutschland) als Hauptzahlstelle (die am Main, Germany) as principal paying agent "Hauptzahlstelle" und gemeinsam mit (the "Principal Paying Agent" and, together etwaigen von der Emittentin nach § 10(2) with any additional paying agent appointed by bestellten zusätzlichen Zahlstellen, die the Issuer in accordance with § 10(2), the "Zahlstellen") bestellt. "Paying Agents").

(2) Änderung der Bestellung oder Abberufung. Die (2) Change or Termination of Appointment. The Emittentin behält sich das Recht vor, jederzeit Issuer reserves the right at any time to vary or die Benennung einer Zahlstelle zu verändern terminate the appointment of any Paying Agent oder zu beenden und Nachfolger bzw. and to appoint successor or additional Paying zusätzliche Zahlstellen zu ernennen. Den Agents. Notice of any change in the Paying Anleihegläubigern werden Änderungen in Agents or in the specified office of any Paying Bezug auf die Zahlstellen oder deren Agent will promptly be given to the Noteholders pursuant to § 13.

29 angegebenen Geschäftsstellen umgehend gemäß § 13 bekannt gemacht.

(3) Beauftragte der Emittentin. Die Zahlstellen (3) Agents of the Issuer. The Paying Agents act handeln ausschließlich als Erfüllungsgehilfen solely as agents of the Issuer and do not assume der Emittentin und übernehmen keine any obligations towards or relationship of Verpflichtungen gegenüber den contract, agency or trust for or with any of the Anleihegläubigern; es wird kein Vertrags-, Noteholders. The Paying Agents are exempt Auftrags- oder Treuhandverhältnis zwischen from the restrictions of § 181 of the German ihnen und den Anleihegläubigern begründet. Civil Code (Bürgerliches Gesetzbuch) and Die Zahlstellen sind von den Beschränkungen possible restrictions in other countries. des § 181 BGB und etwaigen Beschränkungen anderer Ländern befreit.

§ 11 § 11 (Ersetzung) (Substitution)

(1) Ersetzung. Die Emittentin ist, sofern kein (1) Substitution. If the Issuer is not in default with Verzug in Bezug auf die Zahlung von Kapital any payment of principal of or interest on the oder Zinsen auf die Schuldverschreibungen Notes, the Issuer may, without the consent of vorliegt, jederzeit berechtigt, ohne Zustimmung the Noteholders, at any time substitute for the der Anleihegläubiger eine von ihr kontrollierte Issuer any Subsidiary controlled by it as Tochtergesellschaft an ihrer Stelle als principal debtor in respect of all obligations Hauptschuldnerin (die arising from or in connection with the Notes "Nachfolgeschuldnerin") für alle (the "Substitute Debtor") provided that: Verpflichtungen aus und im Zusammenhang mit diesen Schuldverschreibungen einzusetzen, vorausgesetzt, dass:

(a) die Nachfolgeschuldnerin alle (a) the Substitute Debtor assumes all Verpflichtungen der Emittentin in Bezug obligations of the Issuer in respect of the auf die Schuldverschreibungen Notes; übernimmt;

(b) die Nachfolgeschuldnerin berechtigt ist, (b) the Substitute Debtor may transfer to the an die Hauptzahlstelle sämtliche zur Principal Paying Agent in Euro all Erfüllung der Zahlungsverpflichtungen amounts required for the fulfilment of aus den Schuldverschreibungen the payment obligations arising under erforderlichen Beträge in Euro zu the Notes without being obliged by law zahlen, ohne gesetzlich zu einem to withhold or deduct any Taxes (as Einbehalt oder Abzug von Steuern (wie defined in § 6) imposed, levied, in § 6 definiert) verpflichtet zu sein, die collected, withheld or assessed by the von dem Staat, in dem die Substitute Debtor's country of domicile Nachfolgeschuldnerin steuerlich for tax purposes or any political ansässig ist oder einer seiner subdivision or any authority or any other Gebietskörperschaften oder zur agency of or in the Substitute Debtor's Erhebung von Steuern berechtigten country of domicile for tax purposes that Behörden oder sonstigen Stellen has power to tax; auferlegt, erhoben, eingezogen, einbehalten oder festgesetzt werden;

(c) die Nachfolgeschuldnerin sich (c) the Substitute Debtor has agreed to verpflichtet hat, jeden Anleihegläubiger indemnify and hold harmless each hinsichtlich solcher Steuern oder Noteholder against any tax or duty

30 Abgaben freizustellen, die einem imposed on such Noteholder in respect Anleihegläubiger als Folge der of such substitution; Ersetzung auferlegt werden;

(d) die Garantin unwiderruflich und (d) the Guarantor irrevocably and unbedingt gegenüber den unconditionally guarantees in favour of Anleihegläubigern die Zahlung aller von the Noteholders the payment of all sums der Nachfolgeschuldnerin auf die payable by the Substitute Debtor in Schuldverschreibungen zahlbaren respect of the Notes at terms which are Beträge zu Bedingungen garantiert, die equivalent to this of the Guarantee den Bedingungen der in § 2(3) described in § 2(3); and beschriebenen Garantie entsprechen; und

(e) die Emittentin unwiderruflich und (e) the Issuer irrevocably and unbedingt gegenüber den unconditionally guarantees in favour of Anleihegläubigern die Zahlung aller von the Noteholders the payment of all sums der Nachfolgeschuldnerin auf die payable by the Substitute Debtor in Schuldverschreibungen zahlbaren respect of the Notes on terms which Beträge zu Bedingungen garantiert, die ensure that each Noteholder will be put sicherstellen, dass jeder in an economic position that is at least as Anleihegläubiger wirtschaftlich favourable as that which would have mindestens so gestellt wird, wie er ohne existed if the substitution had not taken die Ersetzung stehen würde und in dieser place and such guarantee contains a Garantie eine § 2(2) entsprechende negative pledge undertaking Negativverpflichtung enthalten ist; und corresponding to § 2(2); and

(f) der Hauptzahlstelle jeweils ein (f) the Substitute Debtor delivers to the Rechtsgutachten bezüglich jeder Principal Paying Agent one legal betroffenen Rechtsordnung von opinion for each jurisdiction affected of anerkannten Rechtsanwälten vorgelegt lawyers of recognised standing wird, das bestätigt, dass die confirming that § 11(1)(a) to (e) above Bestimmungen in den vorstehenden have been satisfied. § 11(1)(a) bis (e) erfüllt sind.

Im Sinne dieses § 11 bedeutet For the purposes of this § 11 "Subsidiary" shall "Tochtergesellschaft" eine mean any corporation in which HORNBACH Kapitalgesellschaft, an der die HORNBACH Baumarkt AG directly or indirectly holds not Baumarkt AG direkt oder indirekt insgesamt less than 90 per cent. in aggregate of the capital nicht weniger als 90 % des Kapitals jeder Klasse of any class or of the voting rights. oder der Stimmrechte hält.

(2) Bekanntmachung. Jede Ersetzung ist gemäß (2) Notice. Notice of any such substitution shall be § 13 bekanntzumachen. published in accordance with § 13.

(3) Änderung von Bezugnahmen. Im Fall einer (3) Change of References. In the event of a Schuldnerersetzung gemäß § 11(1) gilt jede substitution pursuant to § 11(1), any reference Bezugnahme in diesen Anleihebedingungen auf in these Terms and Conditions to the Issuer will die Emittentin als eine solche auf die be a reference to the Substitute Debtor and any Nachfolgeschuldnerin und jede Bezugnahme reference to the Federal Republic of Germany auf die Bundesrepublik Deutschland als eine will be a reference to the Substitute Debtor's solche auf den Staat (die Staaten), in welchem country (countries) of domicile for tax die Nachfolgeschuldnerin steuerlich ansässig purposes. For the avoidance of doubt this will ist. Klarstellend sei erwähnt, dass dies nur gilt, apply only to the extent that the meaning and soweit sich nicht aus Sinn und Zweck der purpose of the relevant condition requires that

31 jeweiligen Bedingung ergibt, dass die the relevant reference will continue to be a Bezugnahme entweder weiterhin nur auf die reference only to HORNBACH Baumarkt AG HORNBACH Baumarkt AG erfolgen soll (also (i.e. in particular in relation to § 4(7) (Change insbesondere im Hinblick auf § 4(7) of Control Event)), or that the reference will be (Kontrollwechselereignis), oder dass die to the Substitute Debtor and HORNBACH Bezugnahme auf die Nachfolgeschuldnerin und Baumarkt AG, in relation to HORNBACH gleichzeitig auch auf die HORNBACH Baumarkt AG's obligations under the guarantee Baumarkt AG, im Hinblick auf deren pursuant to § 11(1)(f), at the same time (§ 4(5) Verpflichtungen aus der Garantie gemäß and § 6)). § 11(1)(f), erfolgen soll (§ 4(5) und § 6).

(4) In § 9 gilt ein weiterer Kündigungsgrund als (4) In § 9 a further event of default shall be deemed aufgenommen, der dann besteht, wenn die to have been included; such event of default Garantie gemäß § 11(1)(f) mit rechtskräftiger shall exist in the case that the guarantee Entscheidung eines zuständigen Gerichts für pursuant to § 11(1)(f) is determined by the final nicht vollumfänglich wirksam erklärt wird, oder decision of a competent court or is claimed by die Garantin einen Mangel der Wirksamkeit the guarantor not to be in full force and effect behauptet und dieser Mangel nicht innerhalb and such defect is not corrected within ten von zehn Geschäftstagen behoben wird. business days.

§ 12 § 12 (Aufstockung der Emission) (Further Issues)

Die Emittentin kann ohne Zustimmung der The Issuer may from time to time, without the consent Anleihegläubiger weitere Schuldverschreibungen of the Noteholders, create and issue further Notes begeben, die in jeder Hinsicht (oder in jeder Hinsicht having the same terms and conditions as the Notes in mit Ausnahme des Tags der Begebung, des all respects (or in all respects except for the issue date, Ausgabepreises und der ersten Zinszahlung) die the issue price and the first payment of interest) so as gleichen Bedingungen wie die Schuldverschreibungen to form a single series with the Notes. dieser Anleihe haben und die zusammen mit den Schuldverschreibungen dieser Anleihe eine einzige Anleihe bilden.

§ 13 § 13 (Bekanntmachungen) (Notices)

(1) Bekanntmachung. Alle die (1) Publication. All notices concerning the Notes Schuldverschreibungen betreffenden shall be published in the German Federal Mitteilungen sind im Bundesanzeiger und Gazette (Bundesanzeiger) and (so long as the (solange die Schuldverschreibungen an der Notes are listed on the Luxembourg Stock Luxemburger Wertpapierbörse notiert sind und Exchange and the rules of that exchange so die Regularien dieser Börse dies verlangen) auf require) on the website of the Luxembourg der Internetseite der Luxemburger Stock Exchange on www.bourse.lu. Any notice Wertpapierbörse unter www.bourse.lu zu will become effective for all purposes on the veröffentlichen. Für das Datum und die date of the first such publication. Any notice so Rechtswirksamkeit sämtlicher given will be deemed to have been validly given Bekanntmachungen ist die erste on the third calendar day following such first Veröffentlichung maßgeblich. Jede derartige publication. Mitteilung gilt am dritten Kalendertag nach dem Tag der ersten Veröffentlichung als wirksam erfolgt.

(2) Mitteilungen an das Clearingsystem. Solange (2) Notification to Clearing System. As long as any Schuldverschreibungen an der Luxemburger Note is listed on the Luxembourg Stock

32 Wertpapierbörse notiert sind, findet § 13(1) Exchange, § 13(1) shall apply. However, if the Anwendung. Soweit die Regeln der rules of the Luxembourg Stock Exchange so Luxemburger Wertpapierbörse es zulassen, permit, the Issuer may deliver the relevant kann die Emittentin eine Veröffentlichung nach notice to the Clearing System for § 13(1) durch eine Mitteilung an das communication by the Clearing System to the Clearingsystem zur Weiterleitung an die Noteholders in lieu of a publication in Anleihegläubiger ersetzen, vorbehaltlich des accordance with § 13(1) above subject to the nachfolgenden Satzes. Jede derartige Mitteilung following sentence. Any such notice shall be gilt am fünften Geschäftstag nach dem Tag der deemed to have been given to the Noteholders Mitteilung an das Clearingsystem als wirksam on fifth Business Day after the said notice was erfolgt. Die Pflicht zur Veröffentlichung über given to the Clearing System. The requirement den Bundesanzeiger nach § 13(1) bleibt for a publication in the Federal Gazette pursuant bestehen. to § 13(1) shall persist.

§ 14 § 14 (Änderung der Anleihebedingungen durch (Amendments to the Terms and Conditions by Beschluss der Anleihegläubiger; Gemeinsamer resolution of the Noteholders; Joint Vertreter) Representative)

(1) Änderung der Anleihebedingungen. Die (1) Amendments to the Terms and Conditions. In Anleihegläubiger können entsprechend den accordance with the German Act on Issues of Bestimmungen des Gesetzes über Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen Schuldverschreibungen aus Gesamtemissionen (Schuldverschreibungsgesetz – "SchVG") – "SchVG"), the Noteholders may agree with durch einen Beschluss mit der in § 14(2) the Issuer on amendments to the Terms and bestimmten Mehrheit über einen im SchVG Conditions with regard to matters permitted by zugelassenen Gegenstand eine Änderung der the SchVG by resolution with the majority Anleihebedingungen mit der Emittentin specified in § 14(2). Majority resolutions shall vereinbaren. Die Mehrheitsbeschlüsse der be binding on all Noteholders. Resolutions Anleihegläubiger sind für alle Anleihegläubiger which do not provide for identical conditions gleichermaßen verbindlich. Ein for all Noteholders are void, unless Noteholders Mehrheitsbeschluss der Anleihegläubiger, der who are disadvantaged have expressly nicht gleiche Bedingungen für alle consented to their being treated Anleihegläubiger vorsieht, ist unwirksam, es sei disadvantageously. denn, die benachteiligten Anleihegläubiger stimmen ihrer Benachteiligung ausdrücklich zu.

(2) Mehrheitserfordernisse. Die Anleihegläubiger (2) Majority. Resolutions shall be passed by a entscheiden mit einer Mehrheit von 75 % der an majority of not less than 75 per cent. of the der Abstimmung teilnehmenden Stimmrechte. votes cast. Resolutions relating to amendments Beschlüsse, durch welche der wesentliche to the Terms and Conditions which are not Inhalt der Anleihebedingungen nicht geändert material and which do not relate to the matters wird und die keinen Gegenstand des § 5 Absatz listed in § 5(3) nos. 1 to 9 SchVG require a 3, Nummer 1 bis Nummer 9 SchVG betreffen, simple majority of the votes cast. bedürfen zu ihrer Wirksamkeit einer einfachen Mehrheit der an der Abstimmung teilnehmenden Stimmrechte.

(3) Beschlussfassung. Alle Beschlüsse können in (3) Resolutions. All resolutions may be passed in a einer Gläubigerversammlung oder im Wege der Noteholders' meeting or by vote taken without Abstimmung ohne Versammlung gefasst a meeting. werden.

33 (4) Gläubigerversammlung. Falls Beschlüsse der (4) Noteholders' meeting. If resolutions of the Anleihegläubiger in einer Noteholders shall be made by means of a Gläubigerversammlung gefasst werden, enthält meeting the convening notice will provide for die Bekanntmachung der Einberufung nähere further details relating to the resolutions and the Angaben zu den Beschlüssen und zu den voting procedure. The subject matter of the vote Abstimmungsmodalitäten. Die Gegenstände as well as the proposed resolutions shall be und Vorschläge zur Beschlussfassung werden notified to the Noteholders together with the den Anleihegläubigern mit der convening notice. Attendance at the meeting Bekanntmachung der Einberufung bekannt and exercise of voting rights is subject to the gemacht. Die Teilnahme an der Noteholders' registration. The registration must Gläubigerversammlung und die Ausübung der be received at the address stated in the Stimmrechte sind von einer vorherigen convening notice no later than the third day Anmeldung der Anleihegläubiger abhängig. preceding the meeting. As part of the Die Anmeldung muss unter der in der registration, Noteholders must demonstrate Bekanntmachung der Einberufung mitgeteilten their eligibility to participate in the vote by Adresse spätestens am dritten Tag vor der means of a special confirmation of a Custodian Gläubigerversammlung zugehen. Mit der in accordance with § 15(4) in text form and by Anmeldung müssen die Anleihegläubiger ihre submission of a blocking instruction by the Berechtigung zur Teilnahme an der Custodian stating that the relevant Notes are not Abstimmung durch einen in Textform erstellten transferable from and including the day such besonderen Nachweis einer Depotbank gemäß registration has been sent until and including the § 15(4) und durch Vorlage eines Sperrvermerks stated end of the meeting. der Depotbank, aus dem hervorgeht, dass die betreffenden Schuldverschreibungen ab dem Tag der Absendung der Anmeldung (einschließlich) bis zum angegebenen Ende der Gläubigerversammlung (einschließlich) nicht übertragbar sind, nachweisen.

(5) Abstimmung ohne Versammlung. Falls (5) Vote without a meeting. If resolutions of the Beschlüsse der Anleihegläubiger im Wege einer Noteholders shall be made by means of a vote Abstimmung ohne Versammlung gefasst without a meeting the request for voting will werden, enthält die Aufforderung zur provide for further details relating to the Stimmabgabe nähere Angaben zu den resolutions and the voting procedure. The Beschlüssen und zu den subject matter of the vote as well as the Abstimmungsmodalitäten. Die Gegenstände proposed resolutions shall be notified to the und Vorschläge zur Beschlussfassung werden Noteholders together with the request for den Anleihegläubigern mit der Aufforderung voting. The exercise of voting rights is subject zur Stimmabgabe bekannt gemacht. Die to the Noteholders' registration. The registration Ausübung der Stimmrechte ist von einer must be received at the address stated in the vorherigen Anmeldung der Anleihegläubiger request for voting no later than the third day abhängig. Die Anmeldung muss unter der in der preceding the beginning of the voting period. Aufforderung zur Stimmabgabe mitgeteilten As part of the registration, Noteholders must Adresse spätestens am dritten Tag vor Beginn demonstrate their eligibility to participate in the des Abstimmungszeitraums zugehen. Mit der vote by means of a special confirmation of a Anmeldung müssen die Anleihegläubiger ihre Custodian in accordance with § 15(4) hereof in Berechtigung zur Teilnahme an der text form and by submission of a blocking Abstimmung durch einen in Textform erstellten instruction by the Custodian stating that the besonderen Nachweis einer Depotbank gemäß relevant Notes are not transferable from and § 15(4) und durch Vorlage eines Sperrvermerks including the day such registration has been sent der Depotbank, aus dem hervorgeht, dass die until and including the day the voting period betreffenden Schuldverschreibungen ab dem ends.

34 Tag der Absendung der Anmeldung (einschließlich) bis zum letzten Tag des Abstimmungszeitraums (einschließlich) nicht übertragbar sind, nachweisen.

(6) Zweite Versammlung. Wird für die (6) Second meeting. If it is ascertained that no Gläubigerversammlung gemäß § 14(4) oder die quorum exists for the meeting pursuant to Abstimmung ohne Versammlung gemäß § 14(4) or the vote without a meeting pursuant § 14(5) die mangelnde Beschlussfähigkeit to § 14(5), in case of a meeting the chairman festgestellt, kann – im Fall der may convene a second meeting in accordance Gläubigerversammlung – der Vorsitzende eine with § 15(3) sentence 2 of the SchVG or in case zweite Versammlung im Sinne von § 15 Absatz of a vote without a meeting the scrutineer may 3 Satz 2 SchVG und – im Fall der Abstimmung convene a second meeting within the meaning ohne Versammlung – der Abstimmungsleiter of § 15(3) sentence 3 of the SchVG. Attendance eine zweite Versammlung im Sinne von § 15 at the second meeting and exercise of voting Absatz 3 Satz 3 SchVG einberufen. Die rights is subject to the Noteholders' registration. Teilnahme an der zweiten Versammlung und The registration must be received at the address die Ausübung der Stimmrechte sind von einer stated in the convening notice no later than the vorherigen Anmeldung der Anleihegläubiger third day preceding the second meeting. As part abhängig. Die Anmeldung muss unter der in der of the registration, Noteholders must Bekanntmachung der Einberufung mitgeteilten demonstrate their eligibility to participate in the Adresse spätestens am dritten Tag vor der vote by means of a special confirmation of a zweiten Versammlung zugehen. Mit der Custodian in accordance with § 15(4) hereof in Anmeldung müssen die Anleihegläubiger ihre text form and by submission of a blocking Berechtigung zur Teilnahme an der instruction by the Custodian stating that the Abstimmung durch einen in Textform erstellten relevant Notes are not transferable from and besonderen Nachweis einer Depotbank gemäß including the day such registration has been sent § 15(4) und durch Vorlage eines Sperrvermerks until and including the stated end of the der Depotbank, aus dem hervorgeht, dass die meeting. betreffenden Schuldverschreibungen ab dem Tag der Absendung der Anmeldung (einschließlich) bis zum angegebenen Ende der Versammlung (einschließlich) nicht übertragbar sind, nachweisen.

(7) Gemeinsamer Vertreter. Die Anleihegläubiger (7) Noteholders' Representative. The Noteholders können durch Mehrheitsbeschluss zur may by majority resolution appoint a common Wahrnehmung ihrer Rechte einen representative to exercise the Noteholders' gemeinsamen Vertreter für alle rights on behalf of each Noteholder. Anleihegläubiger bestellen.

Der gemeinsame Vertreter hat die Aufgaben The Noteholders' Representative shall have the und Befugnisse, welche ihm durch Gesetz oder duties and powers provided by law or granted von den Anleihegläubigern durch by majority resolution of the Noteholders. The Mehrheitsbeschluss eingeräumt wurden. Er hat Noteholders' Representative shall comply with die Weisungen der Anleihegläubiger zu the instructions of the Noteholders. To the befolgen. Soweit er zur Geltendmachung von extent that the Noteholders' Representative has Rechten der Anleihegläubiger ermächtigt ist, been authorised to assert certain rights of the sind die einzelnen Anleihegläubiger zur Noteholders, the Noteholders shall not be selbständigen Geltendmachung dieser Rechte entitled to assert such rights themselves, unless nicht befugt, es sei denn, der explicitly provided for in the relevant majority Mehrheitsbeschluss sieht dies ausdrücklich vor. resolution. The Noteholders' Representative Über seine Tätigkeit hat der gemeinsame shall provide reports to the Noteholders on its

35 Vertreter den Anleihegläubigern zu berichten. activities. The regulations of the SchVG apply Für die Abberufung und die sonstigen Rechte with regard to the recall and the other rights and und Pflichten des gemeinsamen Vertreters obligations of the Noteholders' Representative. gelten die Vorschriften des SchVG.

(8) Bekanntmachungen. Bekanntmachungen (8) Notices. Any notices concerning this § 14 shall betreffend diesen § 14 erfolgen gemäß den be made in accordance with § 5 et seq. SchVG §§ 5ff. SchVG sowie nach § 13. and § 13.

(9) Garantie. Die oben aufgeführten auf die (9) Guarantee. The provisions set out above Änderung der Anleihebedingungen applicable to the amendment of the Terms and anwendbaren Bestimmungen finden sinngemäß Conditions shall apply mutatis mutandis to the auf die Bestimmungen der in § 2(3) Guarantee described in § 2(3) and any beschriebenen Garantie und einer gemäß guarantee given in accordance with § 11(1)(f). § 11(1)(f) gestellten Garantie Anwendung.

§ 15 § 15 (Anwendbares Recht, (Applicable Law, Gerichtsstand, Submission to Jurisdiction, Erfüllungsort, Place of performance, Gerichtliche Geltendmachung) Enforcement)

(1) Anwendbares Recht. Form und Inhalt der (1) Applicable Law. Form and content of the Notes Schuldverschreibungen bestimmen sich nach are governed by the laws of the Federal dem Recht der Bundesrepublik Deutschland. Republic of Germany.

(2) Gerichtsstand. Vorbehaltlich eines zwingend (2) Submission to Jurisdiction. Subject to any vorgeschriebenen Gerichtsstands für bestimmte mandatory jurisdiction for specific proceedings Verfahren nach dem SchVG ist Frankfurt am under the SchVG, non-exclusive place of Main, Bundesrepublik Deutschland, nicht jurisdiction for all proceedings arising from ausschließlicher Gerichtsstand für alle matters provided for in these Terms and Rechtsstreitigkeiten aus den in diesen Conditions shall be Frankfurt am Main, Federal Anleihebedingungen geregelten Republic of Germany. Angelegenheiten.

(3) Erfüllungsort. Erfüllungsort ist Frankfurt am (3) Place of performance. Place of performance Main, Bundesrepublik Deutschland. shall be Frankfurt am Main, Federal Republic of Germany.

(4) Gerichtliche Geltendmachung. Jeder (4) Enforcement. Any Noteholder may in any Anleihegläubiger ist berechtigt, in jedem proceedings against the Issuer, or to which such Rechtsstreit gegen die Emittentin oder in jedem Noteholder and the Issuer are parties, in his own Rechtsstreit, in dem der Anleihegläubiger und name enforce his rights arising under such die Emittentin Partei sind, seine Rechte aus den Notes on the basis of: (i) a statement issued by ihm zustehenden Schuldverschreibungen im the Custodian with whom such Noteholder eigenen Namen auf der folgenden Grundlage maintains a securities account in respect of geltend zu machen: (i) er bringt eine Notes (a) stating the full name and address of Bescheinigung der Depotbank bei, bei der er für the Noteholder, (b) specifying the aggregate die Schuldverschreibungen ein principal amount of Notes credited to such Wertpapierdepot unterhält, welche (a) den securities account on the date of such statement vollständigen Namen und die vollständige and (c) confirming that the Custodian has given Adresse des Anleihegläubigers enthält, (b) den written notice to the Clearing System Gesamtnennbetrag der Schuldverschreibungen containing the information pursuant to (a) and bezeichnet, die unter dem Datum der (b) and (ii) a copy of the Note in global form Bestätigung auf dem Wertpapierdepot verbucht certified as being a true copy by a duly

36 sind und (c) bestätigt, dass die Depotbank authorised officer of the Clearing System or a gegenüber dem Clearingsystem eine depository of the Clearing System, without the schriftliche Erklärung abgegeben hat, die die need for production in such proceedings of the vorstehend unter (a) und (b) bezeichneten actual records or the global note representing Informationen enthält, und (ii) er legt eine the Notes or (iii) any other means of proof Kopie der die betreffenden permitted in legal proceedings in the country of Schuldverschreibungen verbriefenden enforcement. For purposes of the foregoing, Globalurkunde vor, deren Übereinstimmung "Custodian" means any bank or other financial mit dem Original eine vertretungsberechtigte institution of recognised standing authorised to Person des Clearingsystems oder des engage in securities custody business with Verwahrers des Clearingsystems bestätigt hat, which the Noteholder maintains a securities ohne dass eine Vorlage der Originalbelege oder account in respect of the Notes and includes the der die Schuldverschreibungen verbriefenden Clearing System. Globalurkunde in einem solchen Verfahren erforderlich wäre oder (iii) auf jede andere Weise, die im Lande der Geltendmachung prozessual zulässig ist. Für die Zwecke des Vorstehenden bezeichnet "Depotbank" jede Bank oder ein sonstiges anerkanntes Finanzinstitut, das berechtigt ist, das Wertpapierverwahrungsgeschäft zu betreiben und bei der/dem der Anleihegläubiger ein Wertpapierdepot für die Schuldverschreibungen unterhält, einschließlich des Clearingsystems.

§ 16 § 16 (Sprache) (Language)

Diese Anleihebedingungen sind in deutscher Sprache These Terms and Conditions are written in the German abgefasst und mit einer Übersetzung in die englische language and provided with an English language Sprache versehen. Der deutsche Wortlaut ist allein translation. The German text shall be the only legally rechtsverbindlich. Die englische Übersetzung dient nur binding version. The English language translation is zur Information. provided for convenience only.

37 FORM OF GUARANTEE

Die deutsche Version dieser Garantie ist bindend. Die The German text of this Guarantee is binding. The englische Übersetzung dient nur zu English translation is for information purposes only. Informationszwecken.

GARANTIE GUARANTEE

der of

HORNBACH International GmbH HORNBACH International GmbH (Bornheim, Bundesrepublik Deutschland) (Bornheim, Federal Republic of Germany) (die "Garantin") (the "Guarantor")

zugunsten der Gläubiger der EUR 250.000.000 for the benefit of the holders of the EUR 250,000,000 3,250 % garantierten Schuldverschreibungen fällig 3.250 per cent. Guaranteed Notes due 2026 issued by 2026 der

HORNBACH Baumarkt AG HORNBACH Baumarkt AG (Bornheim, Bundesrepublik Deutschland) (Bornheim, Federal Republic of Germany) (die "Emittentin") (the "Issuer")

ISIN DE000A255DH9 ISIN DE000A255DH9 (die "Schuldverschreibungen"). (the "Notes").

1. Definitionen 1. Definitions

Die in dieser Garantie verwendeten und nicht Terms used in this Guarantee and not otherwise anders definierten Begriffe haben die ihnen in defined herein shall have the meaning attributed den Bedingungen der Schuldverschreibungen to them in the terms and conditions of the Notes (die "Anleihebedingungen") zugewiesene (the "Terms and Conditions"). Bedeutung.

2. Garantie 2. Guarantee

(a) Die Garantin übernimmt gegenüber der (a) The Guarantor unconditionally and Commerzbank Aktiengesellschaft (die irrevocably guarantees (subject to the "Hauptzahlstelle") zugunsten jedes provisions in Clause 6 of this Guarantee) Inhabers von Schuldverschreibungen towards Commerzbank (jeweils ein "Anleihegläubiger") die Aktiengesellschaft (the "Principal unbedingte und unwiderrufliche Paying Agent") for the benefit of each Garantie (nach Maßgabe der holder (each a "Noteholder") of each Bestimmungen gemäß Ziffer 6 dieser Note, the unconditional and irrevocable Garantie) für die ordnungsgemäße und guarantee for the due and punctual pünktliche Zahlung aller nach Maßgabe payment of any amounts payable by the der Anleihebedingungen von der Issuer in respect of the Notes pursuant to Emittentin auf die Schuldverschrei- the Terms and Conditions. This bungen zu zahlenden Beträge. Diese Guarantee constitutes an independent Garantie begründet eine selbständige obligation of the Guarantor, which is Verpflichtung der Garantin (keine independent from the legal relationship Bürgschaft), deren Bestand unabhängig between the Issuer and the Noteholders, von der rechtlichen Beziehung zwischen and which is in particular independent der Emittentin und den from the validity or the enforceability of Anleihegläubigern ist, und die the claims against the Issuer under the insbesondere nicht von der Wirksamkeit Notes. oder der Durchsetzbarkeit der

38 Ansprüche gegen die Emittentin aus den Schuldverschreibungen abhängt.

(b) Diese Garantie begründet eine (b) This Guarantee constitutes a direct and unmittelbare und nicht nachrangige unsubordinated obligation of the Verpflichtung der Garantin, die mit allen Guarantor, ranking at least pari passu anderen gegenwärtigen und zukünftigen with all other present and future nicht besicherten und nicht unsecured and unsubordinated nachrangigen Verbindlichkeiten der obligations of the Guarantor, save for Garantin zumindest im gleichen Rang such obligations which may be preferred steht, mit Ausnahme von by applicable law. Upon discharge of Verbindlichkeiten, die nach geltenden any payment obligation of the Guarantor Rechtsvorschriften vorrangig sind. Mit subsisting under the Guarantee in favour der Erfüllung einer of any Noteholder, the relevant Zahlungsverpflichtung der Garantin guaranteed right of such Noteholder zugunsten eines Anleihegläubigers aus under the Terms and Conditions will der Garantie erlischt zugleich das cease to exist. jeweilige garantierte Recht eines Anleihegläubigers aus den Anleihebedingungen.

(c) Die Garantin verpflichtet sich, solange (c) The Guarantor undertakes, so long as Schuldverschreibungen ausstehen, any of the Notes are outstanding, but jedoch nur bis zu dem Zeitpunkt, an dem only up to the time that all amounts of alle Beträge an Kapital und Zinsen an principal and interest have been placed das Clearingsystem oder an dessen at the disposal of the Clearing System or Order zur Gutschrift auf den Konten der to its order for credit to the accounts of jeweiligen Kontoinhaber des the relevant account holders of the Clearingsystems zur Verfügung gestellt Clearing System, worden sind,

(i) kein Grundpfandrecht, Mobiliar- (i) not to create or permit to subsist pfandrecht, Pfandrecht oder sons- any mortgage, charge, pledge or tiges dingliches Sicherungsrecht other form of encumbrance in (jedes ein "Sicherungsrecht") an rem (each a "Security Interest") ihren gesamten Vermögens- over the whole or any part of its werten oder Teilen davon zur assets to secure any present or Besicherung einer anderen future Financial Indebtedness; gegenwärtigen oder zukünftigen and Finanzverbindlichkeit zu gewähren oder bestehen zu lassen; und

(ii) zu veranlassen (soweit rechtlich (ii) to procure (to the extent legally möglich und zulässig), dass keine possible and permissible) that ihrer Tochtergesellschaften ein none of its Subsidiaries will Sicherungsrecht an ihren create or permit to subsist any jeweiligen gesamten Vermögens- Security Interest over the whole werten oder jeweiligen Teilen or any part of its assets to secure davon zur Besicherung einer any present or future own or eigenen oder fremden third-party Financial gegenwärtigen oder zukünftigen Indebtedness, Finanzverbindlichkeit mit

39 Sicherungsrechten gewährt oder bestehen lässt,

ohne zuvor oder gleichzeitig die without prior thereto or at the same time Anleihegläubiger gleichrangig an einem letting the Noteholders share pari passu solchen Sicherungsrecht gleichwertig zu and equally in such Security Interest or beteiligen oder zu Gunsten der benefit from an equivalent Security Anleihegläubiger ein Sicherungsrecht zu Interest, which shall be approved by an gleichwertigen Bedingungen zu independent expert as being equivalent bestellen, welches von einem security. unabhängigen Sachverständigen als gleichwertige Sicherheit beurteilt wird.

Eine nach dieser Ziffer 2(c) zu leistende Any security which is to be provided Sicherheit kann auch zu Gunsten eines pursuant to this Clause 2(c) may also be Treuhänders der Anleihegläubiger provided to a person acting as trustee for bestellt werden. the Noteholders.

(c) Diese Verpflichtung findet keine (c) This undertaking shall not apply to Anwendung auf

(i) ein Sicherungsrecht, das kraft (i) a Security Interest created by Gesetzes entsteht; operation of law;

(ii) ein Sicherungsrecht, das (ii) a Security Interest arising on the aufgrund branchenüblicher basis of customary general terms Allgemeiner and conditions (Allgemeine Geschäftsbedingungen eines Geschäftsbedingungen) of a Kreditinstituts entsteht, mit dem credit institution with whom the die Emittentin oder eine Issuer or a Subsidiary has a Tochtergesellschaft eine business relationship; Geschäftsbeziehung unterhält;

(iii) ein Sicherungsrecht, das (iii) a Security Interest arising on the aufgrund branchenüblicher basis of customary general terms Allgemeiner and conditions (Allgemeine Geschäftsbedingungen eines Geschäftsbedingungen) of a Lieferanten im gewöhnlichen supplier in the ordinary course of Geschäftsgang (nicht durch business (other than as a result of Pflichtverletzung) an solchen a breach of duty) in respect of Gütern entsteht, die im Rahmen such goods that are delivered to des üblichen Geschäftsbetriebs the Issuer or it Subsidiary as part an die Emittentin oder ihre of their normal business Tochtergesellschaften geliefert operations; werden;

(iv) ein Sicherungsrecht, das zum (iv) a Security Interest existing on the Begebungstag der issue date of the Notes, provided Schuldverschreibungen bereits that a revaluation or increase of besteht, wobei Revalutierung any such pre-existing secured oder Erhöhungen diese bereits Financial Indebtedness is not bestehenden gesicherten included in the scope of this sub- Finanzverbindlichkeiten nicht paragraph (iv); unter diesen Unterabsatz (iv) fallen;

40 (v) Sicherungsrechte, welche nicht (v) Security Interests (other than bereits durch einen der already permitted under sub- Unterabsätze (i)-(iv) und (vi) paragraphs (i)-(iv) and (vi)), erlaubt sind, sofern der securing Financial Indebtedness Nominalbetrag der durch diese the principal amount of which, Sicherheiten besicherten when aggregated, does not Finanzverbindlichkeit(en) exceed at any time 15% of the kumulativ zu keiner Zeit 15 % Group’s total consolidated assets der Bilanzsumme des Konzerns (as reported in the then most (wie im letzten verfügbaren recently available consolidated Konzernjahresabschluss financial statements). If at the ausgewiesen) übersteigt. Wenn time of its creation the respective im Zeitpunkt der Bestellung eines Security Interest was in Sicherheitsrechts diese compliance with the Bestellung gemäß den requirements provided for sub- Bestimmungen dieses paragraph (v), any decrease of the Unterabschnittes (v) zulässig ist, Group’s total consolidated assets wird nur aufgrund einer späteren after that time will not lead to a Verringerung der Bilanzsumme breach of any such requirements; des Konzerns der Fortbestand des and betreffenden Sicherheitsrechts nicht unzulässig; sowie

(vi) Sicherungsrechte, welche nicht (vi) Security Interests (other than bereits durch einen der already permitted under sub- Unterabsätze (i)-(v) erlaubt sind, paragraphs (i)-(vi)), securing sofern der Nominalbetrag der Financial Indebtedness the durch diese Sicherheiten principal amount of which, when besicherten aggregated, does not exceed at Finanzverbindlichkeit(en) any time EUR 15,000,000 or its kumulativ zu keiner Zeit equivalent in other currencies. EUR 15.000.000 oder den Gegenwert in anderen Währungen überschreitet.

"Gruppe" bezeichnet die Garantin und "Group" means the Guarantor and its ihre jeweiligen Tochtergesellschaften. Subsidiaries from time to time.

"Finanzverbindlichkeit" bezeichnet "Financial Indebtedness" means any jede bestehende oder zukünftige present or future indebtedness for Verbindlichkeit aus aufgenommenen monies borrowed other than Geldern mit Ausnahme von indebtedness created under any financial Verbindlichkeiten im Zusammenhang or operating lease and rental agreements mit Finanzierungsleasing, whether or not certificated. Mietkaufverträgen und Mietverträgen unabhängig davon, ob sie verbrieft ist oder nicht.

"Tochtergesellschaft" bezeichnet einen "Subsidiary" means any entity whose Rechtsträger, dessen Abschluss financial statements at any time are aufgrund gesetzlicher Vorgaben oder required by law or in accordance with nach Maßgabe allgemein anerkannter generally accepted accounting principles Rechnungslegungsgrundsätze zu einem beliebigen Zeitpunkt mit dem der

41 Garantin zu konsolidieren ist to be fully consolidated with those of the (Vollkonsolidierung). Guarantor.

(d) Im Falle einer Ersetzung der Emittentin (d) In the event of a substitution of the Issuer durch eine Nachfolgeschuldnerin gemäß by a Substitute Debtor pursuant to § 10 § 10 der Anleihebedingungen erstreckt of the Terms and Conditions, this sich diese Garantie auf sämtliche von der Guarantee shall extend to any and all Nachfolgeschuldnerin gemäß den amounts payable by the Substitute Anleihebedingungen zu zahlenden Debtor pursuant to the Terms and Beträge. Dies gilt auch dann, wenn die Conditions. The foregoing shall also Nachfolgeschuldnerin die apply if the Substitute Debtor shall have Verpflichtungen aus den assumed the obligations arising under Schuldverschreibungen von der the Notes from the Guarantor. Garantin übernommen hat.

3. Steuern 3. Taxes

(a) Sämtliche auf die Garantie durch die (a) All amounts to be paid by the Guarantor Garantin zu zahlenden Beträge werden in respect of the Guarantee will be paid ohne Einbehalt oder Abzug von Steuern, free and clear of, and without Abgaben, Festsetzungen oder withholding or deduction for, any taxes, behördlicher Gebühren jedweder Art duties, assessments or governmental ("Steuern") geleistet, die von der charges of whatever nature ("Taxes") Bundesrepublik Deutschland oder einer imposed, levied, collected, withheld or ihrer Gebietskörperschaften oder zur assessed by the Federal Republic of Erhebung von Steuern berechtigten Germany or any political subdivision or Behörden oder sonstigen Stellen any authority or any other agency of or auferlegt, erhoben, eingezogen, in the Federal Republic of Germany that einbehalten oder festgesetzt werden, es has power to tax, unless such sei denn, ein solcher Einbehalt oder withholding or deduction is required by Abzug ist gesetzlich vorgeschrieben. law. If the Guarantor is required by law Sofern die Garantin zu einem solchen to make such withholding or deduction, Einbehalt oder Abzug gesetzlich the Guarantor will pay such additional verpflichtet ist, wird die Garantin amounts (the "Additional Amounts") to zusätzliche Beträge (die "Zusätzlichen the Noteholders as the Noteholders Beträge") an die Anleihegläubiger would have received if no such zahlen, so dass die Anleihegläubiger die withholding or deduction had been Beträge erhalten, die sie ohne den required, except that no such Additional betreffenden Einbehalt oder Abzug Amounts will be payable for any such erhalten hätten. Solche Zusätzlichen Taxes in respect of the Guarantee, Beträge sind jedoch nicht zahlbar wegen solcher Steuern in Bezug auf Garantie,

(i) die wegen einer gegenwärtigen (i) which are to be withheld or oder früheren Verbindung des deducted by reason of the betreffenden Anleihegläubigers relevant Noteholder having, or zu der Bundesrepublik having had, some connection Deutschland, die nicht nur aus with the Federal Republic of der bloßen Inhaberschaft der Germany other than the mere Schuldverschreibungen besteht, holding of that Note; or einzubehalten oder abzuziehen sind; oder

42 (ii) deren Einbehalt oder Abzug ein (ii) the withholding or deduction of Anleihegläubiger oder ein in which could have been avoided dessen Namen handelnder Dritter by a Noteholder or a third party hätte vermeiden können, acting on its behalf, including, insbesondere durch Vorlage but not limited to, by presenting eines Formulars oder einer any form or certificate and/or Urkunde und/oder durch Abgabe making a declaration of non- einer residence or similar claim for Nichtansässigkeitserklärung oder exemption or refund; or Inanspruchnahme einer vergleichbaren Ausnahme oder Geltendmachung eines Befreiungsanspruches oder eines Erstattungsanspruches; oder

(iii) die aufgrund (A) einer Richtlinie (iii) which are to be withheld or oder Verordnung der deducted pursuant to (A) any Europäischen Union oder (B) European Union Directive or einer zwischenstaatlichen Regulation, or (B) any Vereinbarung, eines international treaty, agreement or zwischenstaatlichen Abkommens understanding relating to such oder einer zwischenstaatlichen taxation and to which the Federal Verständigung über deren Republic of Germany or the Besteuerung, an der die European Union is a party, or (C) Bundesrepublik Deutschland any provision of law oder die Europäische Union implementing, or complying beteiligt ist, oder (C) einer with, or introduced to conform gesetzlichen Vorschrift, die diese with, such Directive, Regulation, Richtlinie, Verordnung, treaty, agreement or Vereinbarung, Verständigung understanding. oder dieses Abkommen umsetzt oder befolgt, abzuziehen oder einzubehalten sind.

Die Garantin ist nicht verpflichtet, In any event, the Guarantor will not have zusätzliche Beträge in Bezug auf einen any obligation to pay additional amounts Einbehalt oder Abzug von Beträgen zu deducted or withheld by the Guarantor, zahlen, die gemäß Sections 1471 bis the relevant paying agent or any other 1474 des U.S. Internal Revenue Code (in party in relation to any withholding or der jeweils geltenden Fassung oder deduction of any amounts required by gemäß Nachfolgebestimmungen), the rules of U.S. Internal Revenue Code gemäß zwischenstaatlicher Abkommen, Sections 1471 through 1474 (or any gemäß den in einer anderen amended or successor provisions), Rechtsordnung in Zusammenhang mit pursuant to any inter-governmental diesen Bestimmungen erlassenen agreement, or implementing legislation Durchführungsvorschriften oder gemäß adopted by another jurisdiction in mit dem U.S. Internal Revenue Service connection with these provisions, or geschlossenen Verträgen von der pursuant to any agreement with the U.S. Garantin, der jeweiligen Zahlstelle oder Internal Revenue Service ("FATCA einem anderen Beteiligten abgezogen Withholding") or indemnify any oder einbehalten wurden ("FATCA- investor in relation to any FATCA Steuerabzug") oder Anleger in Bezug Withholding.

43 auf einen FATCA-Steuerabzug schadlos zu halten.

(b) Falls die Garantin ihren (b) In the event that the Guarantor moves its satzungsmäßigen Sitz oder ihren domicile or residence or is merged into a Verwaltungssitz in ein anderes Land als company with domicile or residence in a die Bundesrepublik Deutschland verlegt country other than the Federal Republic oder auf eine Gesellschaft verschmolzen of Germany, the provisions of Clause wird, die ihren satzungsmäßigen Sitz 3(a) above shall apply also to Taxes oder ihren Verwaltungssitz in einem imposed or levied by or behalf of such solchen anderen Land hat, gelten die other country or any taxing authority Bestimmungen gemäß Ziffer 3(a) auch therein. für Steuern, die durch oder für dieses andere Land oder eine dort zur Steuererhebung ermächtigte Stelle auferlegt oder erhoben werden.

(c) Soweit in dieser Garantie von Zinsen (c) Any reference in this Guarantee to und Kapital die Rede ist, sind damit auch interest and principal shall be deemed die gemäß dieser Ziffer 3 zu zahlenden also to refer to any Additional Amounts zusätzlichen Beträge gemeint. which may be payable under this Clause 3.

4. Diese Garantie stellt einen Vertrag zugunsten 4. This Guarantee constitutes a contract in favour der jeweiligen Anleihegläubiger als begünstigte of the respective Noteholders as third party Dritte gemäß § 328 Absatz 1 BGB dar, so dass beneficiaries pursuant to § 328 (1) of the ausschließlich die jeweiligen Anleihegläubiger German Civil Code (Bürgerliches Gesetzbuch) Erfüllung der Garantie unmittelbar von der so that only the respective Noteholders will be Garantin verlangen und die Garantie entitled to claim performance of this Guarantee unmittelbar gegen die Garantin durchsetzen directly from the Guarantor and to enforce the können. Guarantee directly against the Guarantor.

5. Die Hauptzahlstelle handelt nicht als 5. The Principal Paying Agent does not act in a Treuhänder oder in einer ähnlichen Eigenschaft fiduciary or in any other similar capacity for the für die Anleihegläubiger. Noteholders.

6. Durchsetzungsbeschränkungen 6. Limitations on Enforcement

Die Durchsetzung von Ansprüchen aus dieser The enforcement of claims under this Guarantee Garantie unterliegt den in dieser Ziffer 6 is subject to the limitations set out in this geregelten Beschränkungen (die Clause 6 (the "Limitations on Enforcement"). "Durchsetzungsbeschränkungen").

(a) Ein Anleihegläubiger ist vorbehaltlich (a) Subject to Clause 6(c) and (d) below a Ziffer 6(c) und (d) nicht zur Noteholder shall not be entitled to Durchsetzung der Garantie gegen die enforce the Guarantee against the Garantin in der Rechtsform einer Guarantor in the form of a limited Gesellschaft mit beschränkter Haftung liability company to the extent that the befugt, soweit die Garantin darlegt, dass Guarantor demonstrates that such aufgrund der Durchsetzung enforcement has the effect of

(i) ihr Nettovermögen (das "Netto- (i) reducing the Guarantor's net vermögen") auf einen Betrag assets (Nettovermögen) (the "Net reduziert würde, der ihr Assets") to an amount less than Stammkapital unterschreitet oder

44 its stated share capital (Stammkapital), or

(ii) (falls ihr Nettovermögen bereits (ii) (if its Net Assets are already ihr Stammkapital unterschreitet) lower than its stated share capital) der Betrag, um den das causing such amount to be further Nettovermögen das reduced, Stammkapital unterschreitet, vergrößert würde,

und dadurch das Vermögen, das gemäß and thereby affects its assets which are §§ 30, 31 GmbHG zur Erhaltung ihres required for the obligatory preservation Stammkapitals erforderlich ist, of its stated share capital according to beeinträchtigt würde (jeweils eine §§ 30, 31 of the German GmbH-Act "Kapital-Beeinträchtigung"). (Gesetz betreffend die Gesellschaften mit beschränkter Haftung, the "GmbHG") (each, a "Capital Impairment").

(b) Zur Feststellung, ob eine Kapital- (b) For the purpose of determining whether Beeinträchtigung vorliegt, a Capital Impairment has occurred,

(i) ist das Nettovermögen anhand (i) the value of the Net Assets shall der in Deutschland zum be determined in accordance with jeweiligen Zeitpunkt anerkannten accounting principles generally Grundsätze ordnungsmäßiger accepted in the Federal Republic Buchführung zu ermitteln, wobei of Germany from time to time diese Grundsätze so anzuwenden consistently applied by the sind, wie die Garantin sie bei der Guarantor in preparing its Erstellung ihrer Jahresabschlüsse unconsolidated balance sheets (§ 42 GmbHG, §§ 242, 264 (Jahresabschluss according to HGB) in den vorangegangenen § 42 GmbHG, §§ 242, 264 of the Jahren angewandt hat; wobei German Commercial Code Darlehen an die Garantin, welche (Handelsgesetzbuch – "HGB")) der Garantin nach dem Zeitpunkt in the previous years, save that dieser Garantie von einem ihrer loans provided to the Guarantor Gesellschafter gewährt werden, by any of its shareholders after unberücksichtigt bleiben, soweit the date of this Guarantee shall be diese im Sinne des § 39 Abs. 1 disregarded if such loans are Nr. 5 InsO nachrangig sind; subordinated pursuant to § 39 paragraph 1 No. 5 of the German Insolvency Act (Insolvenzordnung – "InsO");

(ii) ist jede Erhöhung des (ii) the amount of any increase of the eingetragenen Stammkapitals der stated share capital Garantin, die nach dem Datum (Stammkapital) of the Guarantor der Garantie erfolgt, von dem effected after the date of this eingetragenen Stammkapital Guarantee shall be deducted from abzuziehen, sofern die Garantin the stated share capital aufgrund irgendeiner anderen (Stammkapital) if the Guarantor vertraglichen Vereinbarung is obliged under any other verpflichtet ist, das eingetragene contractual obligation to deduct Stammkapital bei der such amount of increased stated

45 Berechnung des durchsetzbaren share capital (Stammkapital) in Betrages abzuziehen. Die calculating the enforceable Garantin verpflichtet sich, die amount. The Guarantor Anleihegläubiger unverzüglich undertakes to give notice to the durch Mitteilung gemäß § 12 der Noteholders in accordance with Anleihebedingungen nachdem § 12 of the Terms and Conditions eine solche Abzugsverpflichtung without undue delay aufgrund irgendwelcher anderer (unverzüglich) after becoming vertraglichen Verpflichtungen obliged to make any such entstanden ist zu informieren; deduction under any other contractual obligation;

(iii) werden bei den (iii) the net assets shall take into Nettovermögenswerten die account the costs of the Auditor's Kosten der Wirtschafts- Determination (as defined in prüfungsgesellschaft für die Clause 6(c)(ii) below), either as a Erstellung der Wirtschaftsprüfer- reduction of assets or an increase Feststellung (wie nachfolgend in of liabilities; and Ziffer 6(c)(ii) definiert) entweder als Reduzierung des Vermögens oder als Anstieg von Verbindlichkeiten aufgeführt; und

(iv) ist die Garantin verpflichtet, beim (iv) the Guarantor undertakes to sell, Fehlen ausreichender in a situation where it does not Vermögenswerte zur Abdeckung have sufficient net assets des Stammkapitals sämtliche (Reinvermögen) to maintain its Vermögensgegenstände, die mit stated share capital (Stammka- einem Buchwert bilanziert sind, pital), all of its assets that are der wesentlich (d.h. mehr als shown in the balance sheet with a 10 %) niedriger ist als deren book value (Buchwert) which is Marktwert, unverzüglich zu significantly (i.e. more than 10 veräußern, soweit diese per cent.) lower than the market Vermögensgegenstände nicht value of the assets if the relevant nachweislich betriebsnotwendig asset is not necessary for the sind. Guarantor's business (betriebs- notwendig).

(c) Die Durchsetzungsbeschränkungen sind (c) The Limitations on Enforcement shall nur anwendbar: only apply:

(i) wenn und soweit der/die (i) if and to the extent that the Geschäftsführer der Garantin Guarantor's managing director(s) dem betreffenden (Geschäftsführer) on behalf of Anleihegläubiger innerhalb von the Guarantor have notified and 10 Geschäftstagen, nachdem confirmed to the relevant dieser ein Zahlungsverlangen Noteholder in writing within 10 aufgrund der Garantie gestellt Business Days from the hat, im Namen der Garantin Noteholder's demand under the schriftlich mitteilt und bestätigt Guarantee ("Management ("Bestätigung der Determination") (A) to which Geschäftsführung"), (A) in extent the Guarantee will welchem Umfang die Garantie constitute a payment of the

46 eine Leistung an den shareholder of the Guarantor Gesellschafter der Garantin im pursuant to §§ 30, 31 GmbHG; Sinne des §§ 30, 31 GmbHG (B) sets out in reasonable detail darstellt; (B) hinreichend that and to what extent a Capital ausführlich darlegt, inwieweit Impairment would occur, eine Kapital-Beeinträchtigung provided that the determination eintreten würde, wobei die of such Capital Impairment must Berechnung dieser take into account the principles Kapitalbeeinträchtigung nach set out in Clause 6(b)(i)-(iv) den Grundsätzen der above) and such Management Ziffer 6(b)(i)-(iv) zu erfolgen hat Determination must be provided und die Bestätigung der with sufficient evidence Geschäftsführung mit regarding the object of such ausreichenden Nachweisen über determination and the respective die Gegenstände dieser Noteholder has not disagreed Bestätigung zu versehen ist und with such Management der betreffende Anleihegläubiger Determination; or die Angaben in der Bestätigung der Geschäftsführung nicht bestritten hat; oder

(ii) für den Fall, dass der betreffende (ii) in case that the relevant Anleihegläubiger der Noteholder disagrees with the Bestätigung der Management Determination, if Geschäftsführung widersprochen the Guarantor, not later than 25 hat, wenn die Garantin innerhalb Business Days after the date on von 25 Geschäftstagen nach which the Guarantor has received Erhalt des Widerspruchs auf notice of such disagreement, eigene Kosten eine unabhängige instructs, at its own cost and international anerkannte expense, an independent accoun- Wirtschaftsprüfungsgesellschaft ting firm of international standing mit der Feststellung beauftragt, to issue a determination whether ob (und falls ja, in welchem (and, if so, to what extent) Umfang) Zahlung auf die payment under the Guarantee Garantie eine Kapital- would cause a Capital Beeinträchtigung verursachen Impairment (the "Auditor's würde (die "Wirtschaftsprüfer- Determination") (such Feststellung"), die die oben in determination to take into Ziffer 6(b) aufgeführten account the balance sheet Kriterien zur Anpassung der adjustments set out in Bilanz berücksichtigt. Clause 6(b) above).

Eine etwaige Wirtschaftsprüfer- The Auditor's Determination, if any, Feststellung ist für alle Parteien shall be binding upon all parties, except verbindlich, es sei denn, sie weist if it shows manifest error. If the relevant offensichtliche Unrichtigkeiten auf. Noteholder disagrees with the Auditor's Stimmt der betreffende Determination, the relevant Noteholder Anleihegläubiger der Wirtschaftsprüfer- may enforce the Guarantee up to such Feststellung nicht zu, darf der amount which is undisputed between the betreffende Anleihegläubiger die Guarantor and the relevant Noteholder. Garantie bis zu dem Betrag verwerten, With respect to the amount which is der zwischen der Garantin und dem disputed between the Guarantor and the betreffenden Anleihegläubiger unstreitig relevant Noteholder due to manifest

47 ist. Hinsichtlich desjenigen Betrages, der error of the Auditor's Determination, zwischen der Garantin und dem further rights of the relevant Noteholder betreffenden Anleihegläubiger aufgrund remain reserved. offensichtlicher Unrichtigkeit der Feststellung der Wirtschaftsprüfungs- gesellschaft streitig ist, bleiben weitergehende Rechte des betreffenden Anleihegläubigers unberührt.

(d) Die Durchsetzungsbeschränkungen (d) The Limitations on Enforcement shall gelten nicht für aus der Garantie not apply to any amounts payable by the bestehende Zahlungsverpflichtungen der Guarantor under the Guarantee: Garantin:

(i) in Bezug auf Beträge, die dem (i) in relation to amounts that Teil des Emissionserlöses der correspond to such part of the Schuldverschreibungen issuance proceeds of the Notes (if entsprechen, (A) der any) that (A) have been on-lent gegebenenfalls von der by the Issuer to the Guarantor or Emittentin an die Garantin oder any of its subsidiaries in the form eine ihrer Tochtergesellschaften of a loan, or (B) replace or in Form eines Darlehens refinance other indebtedness weitergereicht wurde, oder (B) which has been on-lent in the der eine andere form of a loan, or (C) in each case Zahlungsverpflichtung, die in (A) and (B) have otherwise been Form eines Darlehens passed on, by the Issuer to the weitergereicht wurde, ersetzt, Guarantor or any of its oder (C) der in den Fällen (A) und subsidiaries, if and to the extent (B) in sonstiger Weise von der that amount has not been repaid Emittentin an die Garantin oder by the Guarantor to the Issuer at eine ihrer Tochtergesellschaften the time the claim for payment weitergereicht wurde, wenn und under the Guarantee is made. If soweit der Betrag im Zeitpunkt the Guarantor has liabilities des Zahlungsverlangens towards the Issuer from a senior aufgrund der Garantie noch nicht (nicht nachrangig) loan the von der Garantin an die burden of demonstrating that Emittentin zurückgeführt worden such senior loan has not been ist. Hat die Garantin eine granted from on-lent issuance Verbindlichkeit gegenüber der proceeds, or, if applicable, has Emittentin aus einem nicht been repaid is on the Guarantor nachrangigen Darlehen, trägt die and/or Garantin die Beweislast dafür, dass dieses Darlehen nicht aus weitergeleiteten Beträgen gewährt wurde oder, falls dies der Fall ist, zwischenzeitlich zurückgeführt wurde; und/oder

(ii) wenn und solange ein Beherr- (ii) if and as long as a domination schungsvertrag und/oder agreement Gewinn- und Verlust- (Beherrschungsvertrag) and/or abführungsvertrag (entweder profit and loss transfer agreement direkt oder über eine Kette von (Gewinn- und

48 Beherrschungs- und/oder Verlustabführungsvertrag) Gewinn- und Verlustabfüh- (either directly or through a chain rungsverträgen) gemäß § 291 of domination and/or profit and AktG zwischen der Garantin als loss transfer agreements) in the beherrschtes bzw. zur meaning of § 291 of the German Gewinnabführung verpflichtetes Stock Corporation Act Unternehmen und der Emittentin, (Aktiengesetz – "AktG") exists für deren Verbindlichkeiten die between the Guarantor as Garantie gewährt wird, besteht, dominated entity or entity being es sei denn, die Garantin hat obliged to share its profit and the nachgewiesen, dass das Bestehen Issuer for whose liabilities the eines Gewinnabführungs- Guarantee is granted unless the vertrages und/oder eines Guarantor has provided evidence Beherrschungsvertrages nicht that the existence of a domination ausreicht, um nicht unter den agreement and/or profit and loss Anwendungsbereich des § 30 transfer agreement Abs. 1 S. 1 GmbHG zu fallen und (Beherrschungs- und/oder dass eine solche Zahlung auf die Gewinnabführungsvertrag) is not Garantie zu einem Verstoß gegen sufficient to disapply § 30 § 30 Abs. 1 S. 1 GmbHG führen paragraph 1 sentence 1 GmbHG würde; und/oder and that payment under the Guarantee would result in a breach of § 30 paragraph 1 sentence 1 GmbHG; and/or

(iii) eine gesetzliche Regelung oder (iii) a statutory rule or a supreme obergerichtliche Entscheidung court decision is issued pursuant ergeht, nach der die to which the capital maintenance Kapitalerhaltungsvorschriften rules will no longer be applicable auf eine Sicherheit oder eine to a security or a guarantee Garantie, mit der securing obligations of a parent Verbindlichkeiten von Mutter- company or an affiliated oder Schwestergesellschaften company; and or besicherte werden, keine Anwendung finden; und/oder

(iv) ein Rückgriffsanspruch, den die (iv) any recourse claim Garantin in Folge der (Rückgriffsanspruch) which the Inanspruchnahme aus der Guarantor has, or would acquire Garantie gegen die Emittentin hat against the Issuer as a result of the oder erwerben würde, im enforcement of the Guarantee, is Zeitpunkt des valuable (vollwertig) at the time Zahlungsverlangens aus der the claim for payment under the Garantie vollwertig ist. Soweit Guarantee is made. To the extent ein solcher vollwertiger that there is such valuable Rückgriffsanspruch besteht oder (vollwertig) recourse claim or erworben werden würde, would be acquired, no bestehen keine Durchsetzungs- Limitations on Enforcement beschränkungen. apply.

(e) Die Durchsetzungsbeschränkungen (e) The Limitations on Enforcement do not beschränken nicht das Recht der affect the right of the Noteholders to Anleihegläubiger, ihre Ansprüche aus claim again any outstanding amount

49 der Garantie zu einem späteren under the Guarantee at a later point in Zeitpunkt erneut geltend zu machen, time if and to the extent that Clause 6 soweit dies zu diesem späteren Zeitpunkt would allow this at that later point in gemäß Ziffer 6 zulässig wäre. time.

7. Verschiedene Bestimmungen 7. Miscellaneous Provisions

(a) Diese Garantie unterliegt deutschem (a) This Guarantee shall be governed by, Recht. and construed in accordance with, German law.

(b) Erfüllungsort ist Frankfurt am Main. (b) Place of performance shall be Frankfurt am Main.

(c) Nicht ausschließlich zuständig für (c) The District Court (Landgericht) in sämtliche im Zusammenhang mit der Frankfurt am Main shall have non- Garantie entstehenden Klagen oder exclusive jurisdiction for any action or sonstige Verfahren ist das Landgericht other legal proceedings arising out of or Frankfurt am Main. in connection with the Guarantee.

(d) Jeder Anleihegläubiger kann in jedem (d) On the basis of a copy of this Guarantee Rechtsstreit gegen die Garantin und in certified as being a true copy by a duly jedem Rechtsstreit, in dem er und die authorised officer of the Principal Garantin Partei sind, seine Rechte aus Paying Agent, each Noteholder may dieser Garantie auf der Grundlage einer protect and enforce in its own name its von einer vertretungsberechtigten rights arising under this Guarantee in Person der Hauptzahlstelle beglaubigten any legal proceedings against the Kopie dieser Garantie ohne Vorlage des Guarantor or to which such Noteholder Originals im eigenen Namen and the Guarantor are parties, without wahrnehmen und durchsetzen. the need for presentation of this Guarantee in such proceedings.

(e) Die Hauptzahlstelle verpflichtet sich, (e) The Principal Paying Agent agrees to das Original dieser Garantie bis zur hold the original copy of this Guarantee Erfüllung sämtlicher Verpflichtungen in custody until all obligations under the aus den Schuldverschreibungen und Notes and this Guarantee have been dieser Garantie zu verwahren. fulfilled.

8. Für Änderungen der Bedingungen der Garantie 8. In relation to amendments of the terms of the durch Beschluss der Anleihegläubiger mit Guarantee by resolution of the Noteholders with Zustimmung der Garantin gilt § 13 der the consent of the Guarantor, § 13 of the Terms Anleihebedingungen entsprechend. and Conditions applies mutatis mutandis.

9. Diese Garantie ist in deutscher Sprache 9. This Guarantee is written in the German abgefasst und mit einer Übersetzung in die language and provided with an English englische Sprache versehen. Der deutsche language translation. The German text of will Wortlaut ist allein rechtsverbindlich. Die be the only legally binding version. The English englische Übersetzung dient nur zu language translation is for provided for Information. convenience only.

50 Bornheim, im Oktober 2019 Bornheim, in October 2019

Hornbach International GmbH Hornbach International GmbH

Durch: By:

______

Wir nehmen die Bedingungen der vorstehenden We hereby accept the terms of the above Guarantee on Garantie im Namen der Anleihegläubiger ohne Obligo, behalf of the Noteholders without recourse, warranty Gewährleistung oder Haftung an. or liability.

Frankfurt am Main, im Oktober 2019 Frankfurt am Main, in October 2019

Commerzbank Aktiengesellschaft Commerzbank Aktiengesellschaft

Durch: By:

______

51 DESCRIPTION OF THE ISSUER AND THE GROUP

General

The Issuer is a stock corporation (Aktiengesellschaft) incorporated under the laws of the Federal Republic of Germany and founded for an indefinite period of time. It was formed by conversion from Hornbach-Baumarkt GmbH & Co. KG (which came into existence on January 28, 1981) into a stock corporation and was registered in the commercial register (Handelsregister) of the local court (Amtsgericht) of Landau/Pfalz on August 20, 1992 under the number HRB 2311 and the name "Hornbach-Baumarkt-Aktiengesellschaft". In 2015, the Issuer’s legal name was changed to "HORNBACH Baumarkt AG". The Issuer operates under German law and under the commercial name "HORNBACH".

The Issuer’s registered office and business address is Hornbachstraße 11, 76879 Bornheim, Germany (telephone: +49 (0) 6348 60-00).

The Issuer’s legal entity identifier (LEI) is: 5299008WW53GLXRORN29.

Information on the Group is made available on the website of HORNBACH Holding AG & Co. KGaA (www.hornbach-holding.de). The information contained on this website does not form part of the Prospectus unless that information is incorporated by reference into the Prospectus.

History and Development

The origins of the Issuer go back to a tradesman’s business founded in 1877 in Landau/Pfalz by Michael Hornbach, the great-great grandfather of the current chairman of the Board of Management of the Issuer, Steffen Hornbach. In 1900, the founder’s son, Wilhelm Hornbach, expanded the business to also trade in building materials. As one of the first do-it-yourself ("DIY") retailers in Germany and Europe, Otmar Hornbach, the company founder’s great- grandson, opened in 1968 the first combined DIY store with garden center in Bornheim. In the second half of the 1980s, the Group rolled out its concept of large DIY and home improvement megastores with garden centers (with a sales area of over 10,000 m² per megastore).

Following the company’s entry into the Austrian market in 1996, the Group has consistently pressed ahead with its expansion into neighbouring European countries. Stores were subsequently opened in The Netherlands, Luxembourg, the Czech Republic, Switzerland, Sweden, Slovakia and Romania.

The Group’s continual growth in Europe was strengthened by the Issuer’s IPO on the Frankfurt Stock Exchange in 1993, where the Issuer’s ordinary shares (ISIN DE0006084403, WKN 608440) are admitted to trading on the Regulated Market (Prime Standard).

As of the date of this Prospectus, the Group operates 159 large DIY stores with garden centers, with an aggregate sales area of approximately 1,871,000 m² in nine countries, of which 96 stores are in Germany and 63 of which are located in other European countries.

Corporate Object

Pursuant to Article 2 of its articles of association, the corporate object of the Issuer is the operation of stores with large selling space, in particular DIY or home improvement centers, with or without garden centers, garden stores, warehouse stores and other warehouse retail businesses. Furthermore, the Issuer may engage in retail and wholesale trade in, and the production and manufacturing of, all types of goods. the Issuer may carry out all transactions which appear suitable for directly or indirectly promoting the corporate purpose, or which are otherwise connected therewith. In particular, the Issuer is authorized to found, acquire, or participate in companies of the similar type or related industries, and to establish branches, in Germany and abroad.

52 Financial Year, Financial Statements

The financial year of the Issuer commences on March 1 of each year and ends on the last day of February of the following year.

The Issuer prepares annual consolidated financial statements in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the European Union and the additional requirements of German commercial law pursuant to Section 315e para. 1 of the German Commercial Code (Handelsgesetzbuch). The Issuer also prepares half-year condensed consolidated financial statements in accordance with IFRS for interim financial reporting (IAS 34). In addition, the Issuer prepares for the first and third quarter of the fiscal year condensed consolidated selected financial information on a basis consistent with IFRS.

Auditors

The consolidated financial statements of the Issuer for the financial years 2017/2018 (March 1, 2017 to February 28, 2018) and 2018/2019 (March 1, 2018 to February 28, 2019), which are incorporated into this Prospectus by reference, were audited by the Issuer’s former auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, The Squaire, Am Flughafen, 60549 Frankfurt am Main, Germany ("KPMG"). KPMG is a member of the German Chamber of Auditors (Mitglied der deutschen Wirtschaftsprüferkammer).

The consolidated half-year financial statements of the Issuer for the 2019/2020 financial year (March 1 to August 31, 2019), which are incorporated into this Prospectus by reference, were reviewed by the Issuer’s new auditor, Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Reichskanzler-Mueller-Strasse 25, 68165 Mannheim, Germany ("Deloitte"). Deloitte is a member of the German Chamber of Auditors (Mitglied der deutschen Wirtschaftsprüferkammer).

Deloitte was appointed as new auditor of the consolidated financial statements of the Issuer by the 2019 annual general meeting of the Issuer based on a recommendation of the Supervisory Board. The Supervisory Board’s recommendation was preceded by a selection procedure pursuant to Article 16 of Regulation (EU) No. 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements for the statutory audit of public-interest entities.

Organizational Structure

The Issuer is part of the "HORNBACH Holding Group", whose parent company is HORNBACH Holding AG & Co. KGaA. Group is the largest operative sub-group of the HORNBACH Holding Group. HORNBACH Baustoff Union GmbH and HORNBACH Immobilien AG form further sub-groups.

The diagram below provides, in abbreviated form (excluding certain shareholdings of minor significance for the operational business), an overview of the Group and its position within the HORNBACH Holding Group as of the date of this Prospectus. For a comprehensive overview of the direct and indirect shareholdings of the Issuer, please see the notes to the consolidated financial statements of the Issuer for the financial year 2018/2019.

53 Hornbach Familien- Treuhandgesellschaft mbH 100%

HORNBACH Management 37.5% AG *7.5% (General partner)

HORNBACH Holding AG & Co. KGaA Management

100% 76.4% ** 100%

HORNBACH Baustoff Union GmbH HORNBACH Baumarkt AG HORNBACH Immobilien AG

100%

HORNBACH International GmbH

100%

HORNBACH Baumarkt HORNBACH Holding HORNBACH Baumarkt HORNBACH Baumarkt GmbH B.V. CS spol s.r.o. *** Luxemburg S.à r.l. Wiener Neudorf, Austria Amsterdam, The Netherlands Prague, Czech Republic Bertrange, Luxembourg

HORNBACH Centrala HORNBACH HORNBACH Baumarkt HORNBACH Baumarkt SRL **** Byggmarknad AB SK spol s.r.o. (Schweiz) AG Domnesti, Romania Gothenburg, Sweden Bratislava, Slovakia Oberkirch, Switzerland

* The remaining 62.5% of the shares in HORNBACH Holding AG & Co. KGaA are in free float. ** The remaining 23.6% of the shares in HORNBACH Baumarkt AG are in free float. *** 0.0033% of the shares in HORNBACH Baumarkt CS spol s.r.o. are directly held by HORNBACH Baumarkt AG. **** 1.6854% of the shares in HORNBACH Centrala SRL are directly held by HORNBACH Baumarkt AG.

Business

Overview

The Group is one of the leading European DIY retailers (Source: Dähne Verlag, Statistik Baumarkt + Garten 2019), with a particular focus on the operation of DIY megastores combined with garden centres in major regional catchment areas, with a sales area of more than 10,000 m² per megastore and similar store layouts and product portfolios. The Group’s sales strategy and product range targets the needs of DIY customers engaged in DIY projects as well as professional customers and offers its customers a broad range of products available at permanently low prices, as well as a broad range of specialist advice and customer services.

The product range offered by the Group in each of its stores extends, on average, to over 50,000 products in stock and covers all the product areas which are relevant for the Group’s primary target customers, the project customers who plan to undertake a large construction or renovation project, or trade professionals. The Group’s product range includes tools and hardware, building materials, bathroom fittings and tiles, paint, wall and floor coverings and garden products.

In all of the countries in which it operates, the Group combines its stationary retail business with online shops (e- commerce) to act as a multichannel DIY retailer. The online shops allow the Group to offer a broad range of more than 180,000 products also outside regular opening hours and outside the catchment areas of its stores. Customers can have articles delivered to their homes by mail order or opt for the "reserve online and collect at the store" service.

54 For the financial year 2018/2019 (March 1, 2018 to February 28, 2019), the Group generated net sales of EUR 4,096 million (financial year 2017/2018: EUR 3,891 million). On a like-for-like basis, i.e. without taking into account any new opening or closures of stores, and net of currency items, the Group’s sales grew by 4.2% for the financial year 2018/2019 (financial year 2017/2018: 3.6%). The Group’s earnings before interest and taxes adjusted for one-off items ("Adjusted EBIT") for the financial year 2018/2019 fell year-on-year by 25.6% to EUR 81.9 million due to a disproportionate rise in personnel and material cost incurred in connection with the improvement of the Group’s stationary store presence by measures store conversion and maintenance. For further information on Adjusted EBIT, which is not performance measure recognised under German GAAP or IFRS, please see "Selected Financial Information – Alternative Performance Measures (APMs)" below.

In the first six months of the financial year 2019/2020 (March 1 to August 31, 2019), the Group generated net sales of EUR 2,444.7 million (same period in the previous financial year: EUR 2,249.6 million). Like-for-like consolidated sales increased net of currency items by 8.3% in the first six months of the financial year 2019/2020 (first half of the financial year 2018/2019: 2.8%). In the first six months of the financial year 2019/2020 the Group’s Adjusted EBIT increased year-on-year by 31.5% to EUR 171.4 million.

Markets

As of the date of this Prospectus, the Group operates in nine countries with a total of 159 DIY stores with garden centers (with a total sales area of approximately 1,871,400 m²), of which 96 are in Germany and 63 of which are in other European countries. In the current financial year 2019/2020, the Group has opened two new stores, located in Kristianstad (Sweden) and Prešov (Slovakia). One small-scale DIY store (HORNBACH compact) in Neunkirchen (Saarland) was closed in August 2019 due to a lack of development prospects. The Group intends to open one further new store in the financial year 2019/2020, located in Duiven (The Netherlands).

The Group differentiates itself in the market by having a current average sales space of approximately 11,800 m² per store. 119 of the 159 DIY stores operated by the Group qualify as megastores with a sales area of over 10,000 m² per store.

Number of stores Sales area (rounded) Germany 96 1,052,440 m² The Netherlands 14 176,350 m² Austria 14 168,870 m² Czech Republic 10 140,880 m² Switzerland 7 89,990 m² Sweden 7 86,100 m² Romania 6 86,430 m² Slovakia 4 58,250 m² Luxembourg 1 12,090 m² Europe 63 818,960 m² Total 159 1,871,400 m²

55 Germany

Germany is the largest DIY market in Europe in terms of sales (Source: Fediyma, Global Home Improvement Report 2018) and is a core regional market for the Group. Following the opening of the first DIY store in Germany in 1968 and a successful expansion of its store network in Germany, the Group currently operates 96 DIY stores in Germany.

In the financial year 2018/2019, the Group generated net sales of EUR 2,119 million (financial year 2017/2018: EUR 2,071 million) and a like-for-like sales growth of 2.2% (financial year 2017/2018: 1.5%) in Germany. In the first half of the financial year 2019/2020 (March 1 to August 31, 2019), the Group generated net sales of EUR 1,255.8 million (first half of the financial year 2018/2019: EUR 1,173.9 million) and a like-for-like sales growth of 7.4% (first half of the financial year 2018/2019: 0.5%) in Germany.

According to its own calculations based on market data provided by DIY market observers, the Group’s market share in the calendar year 2018 was 11.1% (calendar year 2017: 11.0%) based on the total sales of all operators of DIY stores in Germany. In terms of total net sales, the Group was the third-largest German DIY retailer (Source: Dähne Verlag, Statistik Baumarkt + Garten 2019). In 2018, the Group was the leading German DIY company based on average net sales per square meter of sales space (EUR 2,210) and average net sales per store (EUR 25.9 million) (Source: Dähne Verlag, Statistik Baumarkt + Garten 2019). According to its own calculations based on market data provided by DIY market observers, the Group’s sales density (sales per square meter of sales space) was about 65% higher than the average of the ten largest DIY retailers in Germany (excluding Group) in 2018.

The Group has improved its market position in the DIY sector in Germany over the past years. According to its own calculations based on market data provided by DIY market observers, the Group increased its annual net sales in Germany in the period from the financial year 1998/1999 to the financial year 2018/2019 on average by 4.3% (Compound Annual Growth Rate, "CAGR"), while the net sales of the Group as a whole grew by 7.1% (CAGR) in the same period.

Europe

In terms of sales, Europe is the second largest DIY market in the world, after the United States (Source: Fediyma, Global Home Improvement Report 2018). Following the opening of a DIY store with garden centre in Austria in 1996, the Group has consistently pressed ahead with its expansion into neighbouring European countries. Through subsidiaries held by the Guarantor, the Group currently operates stores in 63 locations in eight European countries outside Germany.

In the financial year 2018/2019, the Group generated sales of EUR 1,977 million (financial year 2017/2018: EUR 1,820 million) and a like-for-like sales growth of 6.5% (financial year 2017/2018: 6.1%) in European countries outside Germany. In the first half of the financial year 2019/2020 (March 1 to August 31, 2019), the Group generated net sales of EUR 1,188.9 million (first half of the financial year 2018/2019: EUR 1,075.7 million) and a like-for-like sales growth of 9.2% (first half of the financial year 2018/2019: 5.5%) in European countries outside Germany.

Based on total sales of DIY retailers in Europe (including Germany) in the 2018 calendar year, the Group is the fifth- largest DIY retailer in Europe (Source: Dähne Verlag, Statistik Baumarkt + Garten 2019).

Strategy

The Group’s principal objective is to enhance its market position as one of the leading DIY retailers in Europe while increasing its sales, cash flows and profits. Key components for this are the strategic refinement of the Group’s concept of DIY megastores and the further expansion of its network of stores in areas in Germany and in other European countries at locations with above average potential for profitability and growth as well as the further expansion of its e-commerce activities. The Group believes that it is well positioned to achieve these strategic objectives.

Broad and deep product range and services primarily targeting the needs of project customers

The typical HORNBACH DIY megastore with an average sales area of nearly 11,800 m² carries approximately 50,000 articles, ensuring that its customers can purchase all the products they require, and that these are routinely in- stock in large volumes. The Group primarily targets the needs of project customers planning to carry out construction

56 or renovation projects. The key focus on project customers is also reflected in the depth of project-related advice and services offered by Group (including, inter alia, various in-store services, tool rental and financing services). The Group believes that project customers tend to buy higher volumes of products and, consequently, increased sales to such customers are expected to have a positive impact on the Group’s sales.

Every-day-low-price strategy

The Group generally does not offer limited promotional price cuts or other special offers in order to draw customers into its stores. The Group’s objective is rather to offer its customers the ability to purchase each product at permanently low market prices in comparison to regular prices of other competitors. The Group consistently monitors its competitors’ prices and combines its permanently low prices policy with a price guarantee. If a competitor regularly offers a product at a lower price outside of promotional offers, the Group will lower its market price for that item.

DIY stores with garden centers in prime locations

The Group’s DIY stores with garden centres are generally located at prime locations with convenient access to transport in large catchment areas, allowing customers to easily reach the stores and transport the purchased products to their homes. In order to ensure a high profitability in terms of sales space, investments in new locations are generally prepared on the basis of detailed market research analyses examining, among other criteria, catchment area, purchasing power, potential demand and competition.

Interconnected retail

Over the past decade, the Group has invested extensively into digitalizing its business model and developing its online retail business to act as a multichannel DIY retailer. The Group’s online shops are connected with the DIY megastores with garden centres to an interconnected retail solution. Since the launch of the online store in Germany in December 2010, the Group has established online stores in all countries in which it has stationary DIY retail operations. Measured in terms of online sales generated by stationary DIY store chains, the Group believes to be the market leader in DIY online retail in Germany.

The core aspect of the internet presence is the direct relationship the customers have to their preferred HORNBACH store. Customers can inform themselves online about products, prices, and availability, and can have articles delivered to their homes by mail order or opt for the "Reserve online and collect at the store" service. With a product range of more than 180,000 articles, the online shop also offers significantly greater selection than is possible on limited sales space. Further, the online stores are also available to customers outside the catchment areas of the stationary stores.

Organic growth

The Group plans to continue its organic growth with a focus on expansion outside Germany as it considers that the potential for growth and higher profitability is greater in markets outside Germany as they are not as saturated in the segment of DIY megastores with garden centres as in Germany. At the same time, the Group plans to continuously expand its e-commerce activities in all of the countries in which it operates.

Digitalization of store organization

The Group continues to further optimize and digitalize its store organization and sales processes as well as their dovetailing with procurement and logistics and expects this to have a sustained positive impact on the sales and earnings performance of the Group.

As regards the digitalization of the supply chains of Group, the key focus is on reducing or eliminating manual work steps by automating procurement, provision, and data processing. Furthermore, self-service checkouts and the HORNBACH self-scanning app enable customers to speed up the payment process at the checkout.

Competitive Strengths

The Group believes that it benefits in particular from the following competitive strengths:

57 DIY megastore concept

The Group operates an established base of DIY megastores at prime locations that allows the Group to achieve significant benefits in customer service, marketing and cost efficiency. The Group was one of the first DIY retailers to introduce the DIY megastore concept in Europe, which has become the dominant European format for DIY stores, and has nearly 30 years of experience in operating large format DIY stores. The Group’s DIY megastores, which each have a sales area of 10,000 m² or more, represent 119 of the 159 DIY stores with garden centres currently operated by the Group and account for approximately 83% of the total sales area. The size of the stores allows the Group to offer its customers a broad and deep range of products. The megastores have common product offerings and service levels as well as similar store design, facilitating the Group to roll out new products and concepts rapidly and concurrently in all stores in a systematic manner and to conduct standardised marketing campaigns. The Group believes that operating a homogeneous portfolio of DIY megastores allows it to generate significant economies of scale in store development, store operations, procurement, logistics and advertising, in order to maintain its margins and profitability.

Portfolio of high-quality products, including private labels, offered at low prices

In the Group’s experience, DIY project and professional customers look for high quality products. The Group’s product offering therefore is focused on well-manufactured and long-lasting products. The Group’s strategy is to offer all of its products permanently at the lowest market price in comparison to the standard market price of its competitors, which in the Group’s view offers its customers "value for money".

Furthermore, the Group is increasingly developing own labels in cooperation with partners, which allow the Group to differentiate itself from its competitors. Further benefits of private label products include independence from manufacturers’ brands in terms of innovation and quality, brand management, product lifecycle management, and a higher gross margin. Group’s product portfolio currently comprises approximately 50 private label products which accounted for a 24% share of sales in the financial year 2018/2019. Group aims to increase the share of private label products to around 30% in the medium term.

Customer loyalty and brand recognition

In various DIY consumer surveys and studies, the Group is regularly ranked in the top ranks. In the renowned consumer review "Kundenmonitor Deutschland" customers of DIY stores are regularly polled on issues affecting them, including customer satisfaction. For 2019, the Group was ranked first for "overall satisfaction" among the leading market participants in the German DIY and home improvement store sector. Moreover, the Group was ranked as number one, inter alia, in the categories "Product range, selection, offering", "Product quality" and "Price compared to competitors". In total, the Group was ranked first in 21 and second in eight of the 36 assessment categories polled (Source: Kundenmonitor Deutschland, Bau- und Heimwerkermärkte 2019).

In addition, the Group benefits from strong brand awareness, which is also enhanced by TV and other advertising campaigns.

Low procurement costs and group logistics systems

The Group is usually able to procure its products at low prices and with low delivery costs as a result of its DIY project and professional customers often seeking higher volumes of products. By developing its own logistics systems (which include seven logistics sites with 210,000 sqm warehouse space), the Group has over the years built up a competitive advantage in terms of procuring transport services. The Group’s logistics system combines direct supplies to stores, indirect deliveries via central warehouses and cross-docking (which are reloading centres in which small quantities and partial delivery for the stores are bundled).

Experienced and qualified management

The Group benefits from its well-established and highly qualified management, which has many years of experience in expanding the network of stores in Germany and in other European countries, as well as in optimizing business processes.

58 Main Competitors

The Group’s main stationary competitors in Germany are OBI, Bauhaus, Zeus/Hagebau, Toom, Globus/Hela, Eurobaustoff and Bauvista, and in Europe OBI and Bauhaus. In terms of DIY internet retailers, the Group’s main online competitor is Amazon.

Material Contracts

Below is a description of all material contracts outside the ordinary course of business which could result in any member of the Group being under an obligation or have any entitlement that is material to the Issuer's ability to meet its obligations under the Notes.

Control and Profit and Loss Transfer Agreement between the Issuer and the Guarantor

The Issuer as controlling entity and the Guarantor as controlled entity entered into a control and profit and loss transfer agreement on March 1, 1996, which was amended on February 24, 2000 (the "Control and Profit and Loss Transfer Agreement"). According to this agreement, the Issuer is entitled to issue directions to the Guarantor’s management and the Guarantor is obliged to transfer its entire profit as determined in accordance with the relevant provisions of the German Commercial Code (Handelsgesetzbuch) less any loss carry-forward to the Issuer. Conversely, the Issuer is obligated to offset any loss of the Guarantor in accordance with the Control and Profit and Loss Transfer Agreement. The Control and Profit and Loss Transfer Agreement may be terminated each year.

EUR 250,000,000 3.875% Notes due 2020

On February 15, 2013, the Issuer issued notes in the aggregate principal amount of EUR 250,000,000 with a denomination of EUR 1,000 each (the "Notes 2013/2020"). Interest on the Notes 2013/2020 accrues at 3.875% per annum and is payable annually in arrears on February 15. The Notes 2013/2020 will become due for redemption on February 15, 2020. The Notes 2013/2020 constitute unsecured obligations of the Issuer, ranking pari passu with all other unsecured obligations of the Issuer, and are guaranteed by the Guarantor.

EUR 350,000,000 Syndicated Loan Agreement

On December 22, 2017, the Issuer entered into a syndicated loan agreement regarding a credit facility in the principal amount of up to EUR 350,000,000 with, inter alia, the Guarantor as initial guarantor and HORNBACH Immobilien AG as additional guarantor (up to a maximum amount of EUR 50,000,000 and only if and to the extent the Issuer or any of its subsidiaries has granted loans to HORNBACH Immobilien AG), Commerzbank Aktiengesellschaft, Erste Group Bank AG, HSBC Trinkaus & Burkhardt AG, Landesbank Baden-Württemberg and UniCredit Bank AG as mandated lead arrangers and bookrunners and Commerzbank Finance & Covered Bond S.A. as facility agent (the "Syndicated Loan Agreement"). The Syndicated Loan Agreement has a term of 5 years and is subject to an extension option for one year and a further extension option for another year (the extension options are uncommitted and subject to consent by the lenders). Following exercise of the first extension option, the current maturity date is December 22, 2023. Interest under the Syndicated Loan Agreement is payable quarterly or semi-annually in arrears at a rate of EURIBOR plus a margin. As of the date of this Prospectus, the credit facility under the Syndicated Loan Agreement is not drawn.

Promissory Notes (Schuldscheindarlehen) in an aggregate principal amount of EUR 295,000,000

On September 6, 2018, HORNBACH Holding B.V., a direct subsidiary of the Guarantor, entered into a promissory note loan agreement in the principal amount of EUR 43,000,000 with a term of 7 years and a maturity date on September 15, 2025 (the "Promissory Notes 2018/2025"). On the same date, HORNBACH Holding B.V. entered into a promissory note loan agreement in the principal amount of EUR 52,000,000 with a term of 5 years and a maturity date on September 13, 2023 (the "Promissory Notes 2018/2023"). Interest on the Promissory Notes 2018/2025 and the Promissory Notes 2018/2023 is payable annually in arrears on September 13 at a fixed rate. The Promissory Notes 2018/2025 and the Promissory Notes 2018/2023 constitute unsecured obligations of HORNBACH Holding B.V., ranking pari passu with all other unsecured obligations of HORNBACH Holding B.V., and are guaranteed by the Issuer.

59 On February 14, 2019, the Issuer entered into a promissory note loan agreement in the principal amount of EUR 74,000,000 with a term of 7 years and a maturity date on February 23, 2026 (the "Promissory Notes 2019/2026"). On the same date, the Issuer entered into a promissory note loan agreement in the principal amount of EUR 126,000,000 with a term of 5 years and a maturity date on February 22, 2024 (the "Promissory Notes 2019/2024" and together with the Promissory Notes 2018/2025, the Promissory Notes 2018/2023 and the Promissory Notes 2019/2026, the "Promissory Notes"). Interest on the Promissory Notes 2019/2026 and the Promissory Notes 2019/2024 is payable annually in arrears on February 22 at a fixed rate. The Promissory Notes 2019/2026 and the Promissory Notes 2019/2024 constitute unsecured obligations of the Issuer, ranking pari passu with all other unsecured obligations of the Issuer.

CHF 60,000,000 Term Loan

On November 23, 2018, HORNBACH Baumarkt (Schweiz) AG, a direct subsidiary of the Guarantor, entered into a loan agreement regarding a term loan in the principal amount of up to CHF 60,000,000 (corresponding to EUR 53,000,000) with KfW IPEX-Bank GmbH as lender and the Issuer as guarantor (the "Term Loan"). The Term Loan has a term of 364 days and is subject to a yearly extension option for further 364 days (there is no fixed end date). The extension option is uncommitted and subject to consent by the lender. HORNBACH Baumarkt (Schweiz) AG and KfW IPEX-Bank GmbH have agreed on an extension of the Term Loan by 364 days until November 18, 2020 with a reduced principal amount of CHF 50,000,000 (corresponding to EUR 44,166,666.67). Interest on the Term Loan is payable quarterly or semi-annually in arrears at a rate of CHF LIBOR plus a margin. As of the date of this Prospectus, the Term Loan is drawn in the full amount of CHF 60,000,000.

Legal and Arbitration Proceedings

Neither the Issuer nor any of its subsidiaries is currently involved in any governmental, legal or arbitration proceedings, nor was the Issuer or any of its subsidiaries involved in any such proceedings in the past twelve months, nor is the Issuer aware of any proceedings, whether pending or threatened, that have recently had, or that the Issuer expects to have, material effects on the financial condition or profitability of the Issuer or the Group.

Ratings

The rating agency Moody's Investors Service Ltd. ("Moody’s") has assigned the rating ‘Ba3 (negative outlook)’ to the Issuer. The rating agency S&P Global Ratings Europe Limited ("Standard & Poor’s") has assigned the rating ‘BB (outlook stable)’ to the Issuer.

Obligations of issuers rated ‘Ba’ by Moody's are judged to be speculative and are considered being subject to substantial credit risk. Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from ‘Aa’ through ‘Caa’. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range rating; and the modifier 3 indicates a rating in the lower end of that generic rating category.

Obligations of issuers rated ‘BB’ by Standard & Poor’s are judged to be speculative. As defined by Standard & Poor’s, an obligation rated ‘BB’ is less vulnerable to non-payment than other speculative issues, however, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments on the obligation. Standard & Poor’s appends (+) or (–) to rating categories ‘AA’ through ‘CCC’ denoting the relative standing within each category.

Moody’s and Standard & Poor’s are established in the European Union and are registered under Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended (the "CRA Regulation"). The European Securities and Markets Authority publishes on its website (https://www.esma.europa.eu/supervision/credit-rating-agencies/risk) a list of credit rating agencies registered in accordance with the CRA Regulation.

A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the relevant rating agency.

60 Management and Administrative Bodies

In accordance with the German Stock Corporation Act (Aktiengesetz), the Issuer has a dualistic management structure, which assigns management of the company to the Board of Management (Vorstand) and supervision of the Board of Management to the Supervisory Board (Aufsichtsrat). The powers and responsibilities vested in these governing bodies are set forth in the German Stock Corporation Act, the Issuer’s articles of association, and the internal rules for the Board of Management and the Supervisory Board.

Board of Management

The Board of Management of the Issuer consists of seven members. The following table lists the current members of the Board of Management.

Name Areas of Responsibility Principal activities outside of the Issuer

Steffen Hornbach Strategic Development, Operative –– (Chairman) * Store Management, Sales and Services

Roland Pelka Finance, Accounting, Tax, Controlling, HORNBACH Management AG, (Deputy Chairman) Risk Management, Loss Prevention, Member of the Board of Management Investor Relations HORNBACH International GmbH, Managing Director HORNBACH Immobilien AG, Deputy Chairman of the Supervisory Board WASGAU Produktions & Handels AG, Member of the Supervisory Board Commerzbank AG, Member of the Regional Advisory Board, Central Region

Susanne Jäger Procurement, Imports, Store Planning, VR Bank Südliche Weinstraße-Wasgau Store Development, Quality Assurance, eG, Environmental Issues Member of the Supervisory Board

Wolfger Ketzler Real Estate, Construction, Technical HORNBACH Immobilien AG, Procurement, Internal Audit, Legal, Member of the Supervisory Board Compliance Med 360° AG, Chairman of the Supervisory Board

Karsten Kühn Marketing, Market Research, Internal –– Communications, Public Relations, Organizational Development, Personnel and Labor Director

Ingo Leiner Logistics ––

Dr. Andreas Schobert Technology ––

61 * Steffen Hornbach will step down as Chief Executive Officer (CEO) and retire from the Board of Management of the Issuer as of December 31, 2019. Erich Harsch, currently member of the Supervisory Board of the Issuer, has been appointed as new member of the Board of Management and CEO of the Issuer with effect from January 1, 2020.

Each member of the Board of Management can be contacted at the business address of the Issuer.

Supervisory Board

The Supervisory Board of the Issuer consists of 16 members and, consistent with the German Co-Determination Act (Mitbestimmungsgesetz), includes equal numbers of shareholder and employee representatives. The following table lists the current members of the Supervisory Board.

Name Principal Activities Other mandates

Albrecht Hornbach Chief Executive Officer (CEO) HORNBACH Immobilien AG, (Chairman) HORNBACH Management AG Chairman of the Supervisory Board Deutsche Bundesbank in Rhineland- Palatinate and Saarland, Member of the Advisory Board

Dr. John Feldmann Former member of the Executive Board HORNBACH Holding AG & Co. (Further Deputy of BASF SE KGaA, Chairman) Chairman of the Supervisory Board HORNBACH Management AG, Deputy Chairman of the Supervisory Board

Erich Harsch Chief Executive Officer (CEO) HORNBACH Holding AG & Co. dm-drogerie markt GmbH & Co. KG KGaA, Member of the Supervisory Board

HORNBACH Management AG, Member of the Supervisory Board

dm-drogerie markt GmbH, Member of the Supervisory Board

Georg Hornbach Head of Controlling Department and HORNBACH Management AG, Head of Finance and Procurement Member of the Supervisory Board Department Evangelisches Klinikum Köln Weyertal Universitätskliniken Köln GmbH, Member of the Supervisory Board

Martin Hornbach Managing Partner HORNBACH Holding AG & Co. Corivus Gruppe GmbH KGaA, Deputy Chairman of the Supervisory Board

Corivus Swiss AG, Chairman of the Administrative Board

62 Name Principal Activities Other mandates

Vanessa Stützle Managing Director –– E-Commerce/Omni-Channel Parfümerie Douglas

Melanie Thomann-Bopp Chief Financial Officer (CFO) Sonova HORNBACH Holding AG & Co. Retail Deutschland GmbH KGaA, Member of the Supervisory Board

Prof. Dr.-Ing. Professor of Production Technology HORNBACH Management AG, Jens P. Wulfsberg Helmut-Schmidt-Universität / Member of the Supervisory Board Universität der Bundeswehr Hamburg

Kay Strelow * Section Manager –– Berlin-Marzahn Store

Mohamed Elaouch * Section Manager –– Mainz Store

Christian Garrecht * Operative Head of Workplace Safety –– and Fire Prevention

Markus Lass * District Director ––

Jörg Manns * Sales Employee –– Wiesbaden Store

Anke Matrose * Checkout Assistant –– Bremen Store

Brigitte Mauer * Section Manager –– Tübingen Store

Johannes Otto * Assistant Store Director, –– Schwetzingen Store

* Employee representative

Each member of the Supervisory Board can be contacted at the business address of the Issuer.

The Supervisory Board has established four committees: an audit committee, a personnel committee, a mediation committee pursuant to paragraph 3 of Section 27 of the German Co-Determination Act (Mitbestimmungsgesetz) and a nomination committee.

Conflict of Interest

None of the members of the Board of Management or the Supervisory Board has declared that there are any potential conflicts of interest between any duties towards the Issuer and their private interests or other duties.

Share Capital

As of the date of this Prospectus, the share capital of the Issuer amounts to EUR 95,421,000. It is fully paid and is divided into 31,807,000 no-par ordinary bearer shares with voting rights.

63 Shareholders

The Issuer is controlled by its parent company HORNBACH Holding AG & Co. KGaA ("HORNBACH Holding"), who directly holds 76.4% of the shares in the Issuer. The remaining 23.6% of the shares in the Issuer are held in free float.

37.5% of the shares in HORNBACH Holding are held by Hornbach Familien-Treuhandgesellschaft mbH and members of the Hornbach family (whose voting rights are being exercised by Hornbach Familien- Treuhandgesellschaft mbH). The remaining 62.5% of the shares in HORNBACH Holding are held in free float. Sole general partner (persönlich haftender Gesellschafter) of HORNBACH Holding is HORNBACH Management AG, a wholly-owned subsidiary of Hornbach Familien-Treuhandgesellschaft mbH.

Selected Financial Information

This section sets out selected financial information regarding the Group extracted or derived from the audited consolidated financial statements of the Issuer for the financial years 2017/2018 (March 1, 2017 to February 28, 2018) and 2018/2019 (March 1, 2018 to February 28, 2019) as well as the unaudited condensed consolidated half- year financial statements of the Issuer for the financial year 2019/2020 (March 1 to August 31, 2019).

First-time application of new IFRS 16 accounting standard

The Group is applying the new lease accounting requirements pursuant to IFRS 16 from the 2019/2020 financial year onwards. This has amended the statement of items in the balance sheet and income statement of the Group. Previous year's figures are not adjusted for conversion effects resulting from IFRS 16.

Based on the lease contracts recognized and measured as of March 1, 2019, application of IFRS 16 has resulted in the following material conversion effects in the balance sheet:

Key balance sheet figures Carrying amount Carrying amount IFRS 16 conversion effect Group February 28, 2019 March 1, 2019 (ceteris paribus) (status: March 1, 2019) (in EUR million)

Right-of-use assets 149.0 1,316.4 1,167.4

Lease liabilities 164.0 1,356.5 1,192.5

The following table summarizes the material currency-adjusted conversion effects resulting from IFRS 16 as recognized in the income statement for the first six months of the financial year 2019/2020:

Key income statement figures IFRS 16 conversion effect Group 6 months ended August 31, 2019 (status: March 1, 2019) (in EUR million)1

Depreciation and amortization 70.6

Adjusted EBIT 10.8

Net financial expenses (17.4)

Earnings before taxes (6.6)

1 All figures unaudited.

64 Selected Financial Figures

Selected financial figures 6 months 6 months Financial year Financial year (in EUR million, unless otherwise ended ended ended ended stated) 1 August 31, August 31, February 28, February 28, 2019 2 2018 2 2019 2018

Net sales 2,445 2,250 4,096 3,891

of which in Germany 1,256 1,174 2,119 2.071

of which in other European 1,189 1,076 1,977 1,820 countries

Like-for-like sales growth net of 8.3% 2.8% 4.2% 3.6% currency items (change in %)

Gross margin (gross profit as % of 36.6% 36.9% 36.7% 37.3% net sales)

Adjusted EBIT 171 130 82 110

Consolidated earnings before taxes 142 123 52 81

Consolidated net income 106 91 41 59

Net debt / EBITDA ratio n/a n/a 3.1 1.7

Interest cover ratio n/a n/a 9.7 10.9

Investments 3 53 129 184 129

1 Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on EUR ‘000. 2 Unaudited 3 Investments is the sum of payments for investments in property, plant, and equipment and payments for investments in intangible assets.

Alternative Performance Measures (APMs)

This Prospectus contains certain alternative performance measures (the “Alternative Performance Measures”), including those listed below, which are not recognized as measures under IFRS and should not be considered as substitutes for figures determined in accordance with IFRS or any other accounting standard. The Alternative Performance Measures may not be comparable to any other similarly titled measures of other companies and should not be considered as substitutes for figures determined in accordance with IFRS. The Issuer uses alternative performance measures to measure its operating business and earnings performance, as an indicator of organic growth and as a measure of its indebtedness. The Issuer also believes that alternative performance measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of operating and financial performance. The Issuer’s Alternative Performance Measures are defined as follows:

Like-for-like sales net of currency items (change in %)

The change in like-for-like sales net of currency items is a performance measure of the Group’s operating business and an indicator of the organic growth of the Group’s retail activities (stationary stores and online shops). The calculation of like-for-like sales is based on sales generated by all DIY stores with garden centers that have been in operation for at least one full year. Not included are newly opened and closed stores, or stores subject to substantial conversion measures in the past twelve months. Like-for-like sales are calculated without sales tax (net) and based on an exchange rate projected by management (currency-adjusted). The change in like-for-like sales net of currency items is therefore a performance indicator excluding the impact of changes in the foreign currency exchange rate.

65 EUR million (unless 6 months 6 months Financial year Financial year otherwise indicated) ended ended ended ended August 31, August 31, February 28, February 28, 2019 1 2018 1 2019 2018

Net sales 2,445 2,250 4,096 3,891 Like-for-like sales net of 2,424 2,239 4,027 3,863 currency items 1

Like-for-like sales growth 8.3% 4.2% (change in %) 1

1 Unaudited

Gross margin

The "Gross Margin" is defined as gross profit (net balance of sales and cost of goods sold) as a percentage of net sales. This key management figure provides information about the Group’s gross earnings performance and is primarily influenced by developments in procurement and retail prices, changes in the product mix, and currency items resulting from international procurement.

EUR million (unless 6 months 6 months Financial year Financial year otherwise indicated) ended ended ended ended August 31, August 31, February 28, February 28, 2019 1 2018 1 2019 2018

Net sales 2,445 2,250 4,096 3,891 Cost of goods sold 1,549 1,420 2,593 2,441

Gross profit 896 830 1,503 1,450

Gross margin (gross profit as 36.6% 36.9% 36.7% 37.3% % of net sales) 1

1 Unaudited

Adjusted EBIT

"Adjusted EBIT" corresponds to earnings before interest and taxes ("EBIT") adjusted to exclude non-operating earnings items. Non-operating expenses (e.g. impairment losses on assets, additions to provisions for onerous contracts) are added to EBIT, while non-operating income (e.g. income from disposals of properties, income from write-ups of assets impaired in previous years) are deducted. Adjusted EBIT is therefore particularly useful for management purposes and for comparing the operating performance over time or in forecasts.

EUR million 6 months 6 months Financial year Financial year ended ended ended ended August 31, August 31, February 28, February 28, 2019 1 2018 1 2 2019 2018 2

EBIT 170.9 130.2 67.2 102.5

Non-operating earning items 1 3 +0.5 +0.2 +14.7 +7.5

Adjusted EBIT 1 171.4 130.4 81.9 110.0

1 Unaudited 2 Rounding differences 3 Non-operating earning items are included in following line items of the Group’s consolidated income statement: "Selling and store expenses", "Pre-opening expenses" and "Other income and expenses".

66 Net debt / EBITDA ratio

The "Net debt / EBITDA ratio" corresponds to net financial debt divided by Adjusted EBITDA.

EUR million 1 6 months 6 months Financial year Financial year ended ended ended ended August 31, August 31, February 28, February 28, 2019 2018 2019 2018

Net financial debt 1,493.8 340.5 519.6 321.9 Adjusted EBITDA 289.3 170.5 165.4 191.4

Net debt / EBITDA ratio n/a n/a 3.1 1.7 (net financial debt divided by Adjusted EBITDA)

1 All figures unaudited

Net financial debt is calculated as total current and non-current financial debt less cash and cash equivalents and less current financial assets.

EUR million August 31, August 31, February 28, February 28, 2019 1 2018 1 2019 2018

Current financial debt 1, 2 449.2 29.3 314.8 11.4 Non-current financial debt 1, 3 1,476.2 407.8 447.4 412.6 Cash and cash equivalents 411.6 96.6 242.5 102.1 Current financial assets 20.0 0.0 0.0 0.0

Net financial debt 1 1,493.8 340.5 519.6 321.9

of which lease liabilities 4, 5 1,317.5 – 164.0 –

Net financial debt excluding 176.3 – 355.6 – lease liabilities 5

1 Unaudited 2 Current financial debt is the sum of current financial debt, current lease liabilities and current lease liabilities related to affiliated companies. 3 Non-current financial debt is the sum of non-current financial debt, non-current lease liabilities and non-current lease liabilities related to affiliated companies. 4 Lease liabilities is the sum of non-current and current lease liabilities and non-current and current lease liabilities related to affiliated companies. 5 Figures as of August 31, 2018 and February 28, 2018 are not provided due to lack of comparability (resulting from the new lease accounting requirements pursuant to IFRS 16 applying since the 2019/2020 financial year).

"Adjusted EBITDA" is defined as EBITDA excluding changes in non-current provisions and gains/losses on the disposal of non-current assets as reported in the cash flow statement. "EBITDA" stands for earnings before interest, taxes, depreciation and amortization. EBITDA is a cash flow-based figure, as depreciation and amortization, which do not impact on liquidity, are added to operating earnings (EBIT).

67 EUR million 6 months 6 months Financial year Financial year ended ended ended ended August 31, August 31, February 28, February 28, 2019 1 2018 1 2019 2 2018 2

EBIT 170.9 130.2 67.2 102.5

Depreciation and amortization/ 116.4 41.9 92.0 80.3 write-ups 3

EBITDA 1 287.3 172.1 159.1 182.7

Change in non-current provisions 1.5 -1.1 6.0 9.0 Gains/losses on disposal of non- 0.5 -0.5 0.3 -0.4 current assets

Adjusted EBITDA 1 289.3 170.5 165.4 191.4

1 Unaudited 2 Rounding differences 3 Depreciation and amortization/write-ups is the sum of depreciation and amortization of investments in property, plant, and equipment and in intangible assets and depreciation of right-of-use assets.

Interest cover ratio

The "Interest cover ratio" corresponds to Adjusted EBITDA divided by gross interest expenses.

EUR million 6 months 6 months Financial year Financial year ended ended ended ended August 31, August 31, February 28, February 28, 2019 2018 2019 2018

Adjusted EBITDA 1 289.3 170.5 165.4 191.4 Gross interest expenses 1, 2 28.8 8.5 17.1 17.6

Interest cover ratio (Adjusted n/a n/a 9.7 10.9 EBITDA divided by gross interest expenses) 1

1 Unaudited 2 Gross interest expenses comprise the following line items of the Group’s consolidated income statement: "Other interest and similar expenses".

Expected Financing of the Issuer’s Activities

The Issuer expects to finance the activities of the Group through available cash flow and the proceeds from the issuance of the Notes (to the extent these are not used for the repayment of existing financial liabilities, including the Notes 2013/2020).

Known Trends affecting the Issuer and the Group

The business development of the Group is affected by macroeconomic and sector-specific factors. The development of the labour market, wages, inflation and consumer confidence and demand are amongst the most important macroeconomic framework conditions, while the development of the private renovation and housing construction markets are amongst the most important sector-specific framework conditions.

Recent Events

There are no recent events particular to the Issuer which are to a material extent relevant to an evaluation of the Issuer’s solvency.

68 Trend Information and Significant Changes

There has been no material adverse change in the prospects of the Issuer since February 28, 2019.

There has been no significant change in the financial performance of the Group since August 31, 2019.

There has been no significant change in the financial position of the Group since August 31, 2019.

69 DESCRIPTION OF THE GUARANTOR

General

The Guarantor is a limited liability company (Gesellschaft mit beschränkter Haftung) established under the laws of the Federal Republic of Germany. The Guarantor was incorporated on August 22, 1990 for an indefinite period of time. It is registered in the commercial register (Handelsregister) of the local court (Amtsgericht) of Landau/Pfalz under the number HRB 2636. The Guarantor’s registered office and business address is at Hornbachstraße 11, 76879 Bornheim, Germany (telephone: +49 (0) 6348 60-00). The Guarantor’s legal and commercial name is HORNBACH International GmbH. The Guarantor operates under German law.

The Guarantor’s legal entity identifier (LEI) is: 529900WN6X0XZ70AJ421.

Information on the Group is made available on the website of HORNBACH Holding AG & Co. KGaA (www.hornbach-holding.de). The information contained on this website does not form part of the Prospectus unless that information is incorporated by reference into the Prospectus.

Corporate Object

According to Article 2 of the Articles of Association (Gesellschaftsvertrag) of the Guarantor, the corporate objects of the company are to manage and administer an international trade and services group which may engage in the construction, acquisition and operation of large retail stores, in particular DIY or tradesmen centers, with or without garden centers, warehouse stores or any specialist retail stores, and any similar or other retail or wholesale trade, the manufacture and tooling of products which are the subject of the trade business, administering and assets and acquiring, administering and disposing of participations in European and other non-European companies of any legal form, and the providing of management and other services for European and non-European subsidiaries and affiliated companies, in each case where the activities are conducted by the company itself or by any of its subsidiaries or affiliated companies or may be transferred to such a company. The company is also entitled to participate in other companies, to acquire or dispose of companies, to establish branches, or to enter into fiscal unity or domination and control agreements of any type, and to enter into any transactions which may promote the company’s objectives.

Financial Year, Financial Statements

The financial year of the Guarantor commences on March 1 of each year and ends on the last day of February of the following year.

The Guarantor prepares annual financial statements in accordance with the German Commercial Code (Handelsgesetzbuch). The Guarantor does not publish any interim financial statements.

Auditors

The financial statements of the Guarantor for the financial years 2017/2018 (March 1, 2017 to February 28, 2018) and 2018/2019 (March 1, 2018 to February 28, 2019), which are set out on pages F-1 et seqq. of this Prospectus, were audited by the Guarantor’s former auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, The Squaire, Am Flughafen, 60549 Frankfurt am Main, Germany ("KPMG"). KPMG is a member of the German Chamber of Auditors (Mitglied der deutschen Wirtschaftsprüferkammer).

The financial statements for the financial year 2019/2020 will be audited by Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Reichskanzler-Mueller-Strasse 25, 68165 Mannheim ("Deloitte"), given that Deloitte has been appointed as new auditor of the consolidated financial statements of the Issuer as of the financial year 2019/2020 (see "Description of the Issuer and the Group––Auditors"). Deloitte is a member of the German Chamber of Auditors (Mitglied der deutschen Wirtschaftsprüferkammer).

70 Business

The Guarantor serves as a holding company for its subsidiaries which operate HORNBACH’s DIY stores in European countries outside Germany and does itself not have any own operative business.

Organizational Structure

The Guarantor is a wholly-owned (100%) subsidiary of the Issuer.

For more information on the position of the Guarantor within the organizational structure of the Group, please see the diagram in "Description of the Issuer and the Group––Organizational Structure".

Legal and Arbitration Proceedings

Neither is the Guarantor currently involved in any governmental, legal or arbitration proceedings, nor was the Guarantor involved in any such proceedings in the past twelve months, nor is the Guarantor aware of any proceedings, whether pending or threatened, that have recently had, or that the Guarantor expects to have, material effects on its financial condition or profitability.

Material Contracts

The Guarantor has concluded a Control and Profit and Loss Transfer Agreement with the Issuer as its parent company. For more information please see "Description of the Issuer and the Group––Material Contracts––Control and Profit and Loss Transfer Agreement".

The Guarantor has granted guarantees in respect of the payment obligations of the Issuer under the Notes 2013/2020, the Promissory Notes and the Syndicated Loan Agreement. For more information on these financing arrangements please see "Description of the Issuer and the Group––Material Contracts".

Management

The Guarantor is managed by its managing directors (Geschäftsführer) Jan Hornbach, Wolfger Ketzler and Roland Pelka.

Jan Hornbach is also a managing director of HORNBACH Baumarkt GmbH, an Austrian subsidiary of the Guarantor.

Wolfger Ketzler is also member of the Board of Management of the Issuer, member of the Supervisory Board of HORNBACH Immobilien AG and Chairman of the Supervisory Board of Med 360° AG.

Roland Pelka is also Deputy Chairman of the Board of Management of the Issuer, a member of the Board of Management of HORNBACH Management AG, Deputy Chairman of the Supervisory Board of HORNBACH Immobilien AG, a member of the Supervisory Board of WASGAU Produktions & Handels AG and a member of the of Regional Advisory Board, Central Region, of Commerzbank AG.

The Guarantor is represented by two managing directors, or by a managing director together with an authorized signatory (Prokurist), in each case acting jointly.

The managing directors of the Guarantor can be contacted at the business address of the Guarantor.

None of the persons referred to above has declared that there are potential conflicts of interest between any duties to the Guarantor and their private interests and/or other duties.

Share Capital

The registered share capital of the Guarantor amounts to EUR 30,000,000.

71 Shareholder

The Guarantor is controlled by the Issuer as its parent company which directly holds 100% of the shares in the Guarantor. Indirectly, the Guarantor is controlled by HORNBACH Holding AG & Co. KGaA, being the controlling shareholder of the Issuer. For more information see "Description of the Issuer and the Group––Shareholders".

Selected Financial Information

The following table sets out certain key financial information regarding the Guarantor extracted from the audited unconsolidated financial statements for the financial years ending on February 28, 2019 and February 28, 2018.

Investors should note that the financial statements of the Guarantor are unconsolidated and thus do not depict the performance of the Guarantor's subsidiaries as a whole (the "HORNBACH International Sub-Group").

Key figures Financial year ended Financial year ended Balance sheet February 28, 2019 February 28, 2018 (in EUR thousand) 1

Non-current assets 78,299 78,006

Current assets 27,737 28,037

Equity 106,019 106,019

Provisions 17 24

1 All figures audited

Key figures Financial year ended Financial year ended Income statement February 28, 2019 February 28, 2018 (in EUR thousand) 1

Income from investments 47,118 49,103

Write-downs of financial assets 2,926 25,720

Earnings after taxes 45,315 24,502

Profit transferred under a profit transfer agreement -45,315 -24,502

Annual net profit 0 0

1 All figures audited

Expected Financing of the Guarantor’s Activities

As regards the expected financing of the activities of the HORNBACH International Sub-Group, please see "Description of the Issuer and the Group––Expected Financing of the Issuer’s Activities".

Known Trends affecting the Guarantor

As regards trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the prospects of HORNBACH International Sub-Group, please see "Description of the Issuer and the Group–– Known Trends affecting the Issuer and the Group".

72 Recent Events

There are no recent events particular to the Guarantor which are to a material extent relevant to an evaluation of the Guarantor’s solvency.

Trend Information and Significant Changes

There has been no material adverse change in the prospects of the Guarantor since February 28, 2019.

There has been no significant change in the financial performance of the Guarantor since February 28, 2019.

There has been no significant change in the financial position of the Guarantor since February 28, 2019.

73 TAXATION WARNING

The tax legislation of the investor's member state and of the Issuer's and Guarantor's country of incorporation may have an impact on the income received from the Notes.

No comment is made, or advice given by the Issuer, the Guarantor or any Joint Lead Manager in respect of taxation matters relating to the Notes and each investor is advised to consult its own professional adviser.

74 SUBSCRIPTION AND SALE OF THE NOTES

General

The Issuer has agreed in an agreement to be signed on or about October 23, 2019 (the "Subscription Agreement") to sell to Commerzbank Aktiengesellschaft, HSBC Bank plc and UniCredit Bank AG (together, the "Joint Lead Managers"), and the Joint Lead Managers have agreed, subject to certain customary closing conditions, to purchase, the Notes on October 25, 2019 (the "Issue Date") at a price of 99.232 per cent. of their principal amount (the "Issue Price"). The Joint Lead Manager's commissions amount to 0.40 per cent. of the total nominal amount of the Notes. The Issuer has furthermore agreed to reimburse the Joint Lead Managers for certain expenses incurred in connection with the issue of the Notes.

The Joint Lead Managers are entitled, under certain circumstances, to terminate the agreement reached with the Issuer. In such event, no Notes will be delivered to investors. Furthermore, the Issuer has agreed to indemnify the Joint Lead Managers against certain liabilities in connection with the offer and sale of the Notes.

The Joint Lead Managers or their affiliates have provided from time to time, and expect to provide in the future, investment services to the Issuer and its affiliates, for which the Joint Lead Managers or their affiliates have received or will receive customary fees and commissions.

There are no interests of natural and legal persons other than the Issuer involved in the issue, including conflicting ones that are material to the issue.

Selling Restrictions

General

Each Joint Lead Manager has represented and agreed that it will comply with all applicable laws and regulations in each jurisdiction in which it purchases, offers, sells or delivers Notes or has in its possession or distributes the Prospectus to them and that it will obtain any consent, approval or permission required by it for the purchase, offer, sale or delivery by it of the Notes under the laws and regulations in force in any jurisdiction to which it is subject or in which it makes such purchases, offers, sales or deliveries and neither the Issuer nor any of the other Joint Lead Managers shall have any responsibility therefore.

United States of America and its Territories

The Notes and the Guarantee have not been and will not be registered under the Securities Act, and the Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the Securities Act. Terms used in this paragraph have the meanings given to them by Regulation S under the Securities Act ("Regulation S").

The Notes are subject to U.S. tax law requirements and may not be offered, sold or delivered within the United States or its possessions or to a United States person, except in certain transactions permitted by the U.S. tax regulations. Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986 and regulations thereunder.

Each Joint Lead Manager has represented and agreed that, except as permitted by the Subscription Agreement, it has not offered, sold or delivered and will not offer, sell or deliver the Notes (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering and the Issue Date, within the United States or to, or for the account or benefit of, U.S. persons, and it will have sent to each dealer to which it sells Notes during the distribution compliance period a confirmation or other notice setting forth the restrictions on offers and sales of the Notes within the United States or to, or for the account or benefit of, U.S. persons. Terms used in this paragraph have the meanings given to them by Regulation S.

In addition, until 40 days after the commencement of the offering of the Notes, an offer or sale of Notes within the United States by a dealer that is not participating in the offering may violate the registration requirements of the Securities Act.

75 United Kingdom of Great Britain and Northern Ireland

Each Joint Lead Manager has represented and agreed that:

(a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (the "FSMA")) received by it in connection with the issue or sale of the Notes in circumstances in which section 21(1) of the FSMA does not apply to the Issuer; and

(b) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom.

76 GENERAL INFORMATION

Authorisations: The creation and issue of the Notes has been authorised by a resolution of the Board of Management (Vorstand) of the Issuer on September 16, 2019 and of the Supervisory Board (Aufsichtsrat) of the Issuer on October 7, 2019.

Expenses of the Issue: The total expenses related to the admission to trading of the Notes are expected to amount to EUR 9,000.

Clearing System: Payments and transfers of the Notes will be settled through Clearstream Banking AG, Mergenthalerallee 61, 65760 Eschborn, Germany.

The Notes have the following securities codes:

ISIN: DE000A255DH9 Common Code: 206995335 German Securities Code (WKN): A255DH

Listing and Admission to Trading: Application has been made to the Luxembourg Stock Exchange for the Notes to be admitted to trading on the Luxembourg Stock Exchange's regulated market (which is a regulated market for the purposes of MiFID II) and to be listed on the Official List of the Luxembourg Stock Exchange on or around the Issue Date.

Notices to Noteholders: For so long as the Notes are listed on the Luxembourg Stock Exchange, all notices to the Noteholders regarding the Notes shall be published on the website of the Luxembourg Stock Exchange (www.bourse.lu). Furthermore, all notices to the Noteholders regarding the Notes will be published in the Federal Gazette (Bundesanzeiger). The Issuer will be entitled to deliver all notices concerning the Notes to the Clearing System for communication by the Clearing System to the Noteholders to the extent that the rules of the stock exchange on which the Notes are listed so permit.

Documents on Display: For so long as any Note is outstanding, electronic versions of the following documents are available on the Issuer's website at https://hornbach-holding.de/de/investor_relations/ir_department.html.

(a) the Articles of Incorporation (Satzung) of the Issuer; and

(b) the documents specified in the section "Documents incorporated by reference" below.

So long as the Notes are outstanding, a copy of the following documents will be available from the registered office of the Issuer and from the specified office of the Principal Paying Agent.

(a) the Articles of Incorporation (Satzung) of the Guarantor; and

(b) a copy of the signed Guarantee.

This Prospectus and any supplement to this Prospectus will be published on the website of the Luxembourg Stock Exchange (www.bourse.lu).

Third Party Information: With respect to any information included herein and specified to be sourced from a third party (i) the Issuer confirms that any such information has been accurately reproduced and as far as the Issuer is aware and is able to ascertain from information available to it from such third party, no facts have been omitted the omission of which would render the reproduced information inaccurate or misleading and (ii) neither the Issuer nor any Joint Lead Manager has independently verified any such information and neither the Issuer nor any Joint Lead Manager accepts any responsibility for the accuracy thereof.

Yield to Maturity: For the investors, the yield of the Notes is 3.375 per cent. per annum, calculated on the basis of the Issue Price. Such yield is calculated in accordance with the ICMA (International Capital Markets Association) Method. The ICMA method determines the effective interest rate on notes by taking into account accrued interest on a daily basis.

77 Ratings3:

The Issuer has received the following ratings:

 S&P Global Ratings Europe Limited ("S&P") has assigned the credit rating of BB4 (outlook stable); and

 Moody's Investors Service Ltd ("Moody's") has assigned the credit rating of Ba35 (outlook negative).

The Notes are expected to be rated as follows:

 S&P is expected to assign the credit rating of BB (outlook stable); and

 Moody's is expected to assign the credit rating of Ba2 (outlook negative).

3 Credit ratings included or referred to in this Prospectus have been issued by S&P, Moody's and Fitch, each of which is established in the European Union and registered under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended (the "CRA Regulation"). A list of credit rating agencies registered under the CRA Regulation is available for viewing at https://www.esma.europa.eu/supervision/credit-rating-agencies/risk. A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time. A credit rating assesses the creditworthiness of an entity and informs an investor therefore about the probability of the entity being able to redeem invested capital. It is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time. 4 S&P defines "BB" as follows: "Obligation rated BB is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to the obligor's inadequate capacity to meet its financial commitments on the obligation". Ratings by S&P from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. 5 Moody's defines "Ba" as follows: "Obligations rated Ba are judged to be speculative and are subject to substantial credit risk". Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

78 DOCUMENTS INCORPORATED BY REFERENCE

The following documents which have previously been published or are published simultaneously with this Prospectus and which have been filed with the CSSF are incorporated by reference into this Prospectus: The English language translations of the German language (i) audited consolidated financial statements of the Group for the fiscal year ended on 28 February 2019 included in the Annual Report 2018/2019, (ii) audited consolidated financial statements of the Group for the fiscal year ended on 28 February 2018 included in the Annual Report 2017/18 and (iii) reviewed interim consolidated financial statements of the Group for the six-month period ended on 31 August 2019 and the review report thereon, each included in the Half-Year Financial Report 2019/2020 of the Group.

Any information not incorporated by reference into this Prospectus (which for the avoidance of doubt is not listed in the cross-reference lists below) but contained in one of the documents mentioned as source documents in the cross- reference list below is either not relevant for the investor or covered in another part of this Prospectus.

(1) Reviewed Interim Consolidated Financial Statements of the Group 1 as of and for the half-year period ended on 31 August 2019

 Income Statement ...... page 15

 Statement of Comprehensive Income ...... page 15

 Balance Sheet...... pages 16 to 17

 Statement of Changes in Equity ...... page 18

 Cash Flow Statement ...... page 19

 Notes to the Interim Consolidated Financial Statements ...... pages 20 to 28

 Review Report 2 ...... page 30

(2) Audited Consolidated Financial Statements of the Group 1 as of and for the fiscal year ended on 28 February 2019

 Income Statement ...... page 87

 Balance Sheet...... page 88

 Statement of Changes in Equity ...... page 89

 Cash Flow Statement ...... page 90

 Notes to the Consolidated Financial Statements ...... pages 91 to 165

 Independent Auditor's Report ...... pages 167 to 174

1 The source documents mentioned in the cross-reference are all English-language translations of the respective German-language source documents. 2 The review report (Bescheinigung nach prüferischer Durchsicht) has been issued in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW) in German language on the German version on the condensed consolidated interim financial statements and the interim group management report (Konzernzwischenlagebericht) of HORNBACH Baumarkt AG as of and for the six months period ended August 31, 2019. The interim group management report is neither included nor incorporated by reference in this Prospectus.

79 (3) Audited Consolidated Financial Statements of the Group* as of and for the fiscal year ended on 28 February 2018

 Income Statement ...... page 87

 Balance Sheet...... page 88

 Statement of Changes in Equity ...... page 89

 Cash Flow Statement ...... page 90

 Notes to the Consolidated Financial Statements ...... pages 91 to 157

 Independent Auditor's Report ...... pages 159 to 165

Copies of documents incorporated by reference in this Prospectus may be obtained (without charge) from the business address of the Issuer and the website of the Luxembourg Stock Exchange (www.bourse.lu).

Electronic versions of the documents incorporated by reference are also available on the website of the Issuer (https://hornbach-holding.de/de/investor_relations/ir_department.html) and can be accessed by using the following hyperlinks:

(1) Half-Year Financial Report 2019/2020 of the Group:

 https://hornbach- holding.de/media/en/mediacenter/publications/zwischenberichte_1/hbm_4/2019_2020/q2_5/master_ hbm_konzern_q2_19_20.pdf

(2) Annual Report 2018/2019 of the Group:

 https://www.hornbach- holding.de/media/en/mediacenter/publications/geschaeftsberichte_1/hbm_3/2018_8/190605_gb_hbm _19_de_online.pdf

(3) Annual Report 2017/18 of the Group:

 https://www.hornbach- holding.de/media/en/mediacenter/publications/geschaeftsberichte_1/hbm_3/2017_6/2018_hbm_de_o nline_version.pdf

80 FINANCIAL STATEMENTS OF THE GUARANTOR

Index to Financial Statements

Annual Financial Statements of HORNBACH International GmbH as of February 28, 2018 (English translation)

 Balance Sheet ...... page F-3

 Income Statement ...... page F-4

 Notes ...... page F-5

 Auditor’s Report ...... page F-12

Annual Financial Statements of HORNBACH International GmbH as of February 28, 2019 (English translation)

 Balance Sheet ...... page F-13

 Income Statement ...... page F-14

 Notes ...... page F-15

 Auditor’s Report ...... page F-23

F-1 HORNBACH International GmbH Bornheim bei Landau/Pfalz

Annual Financial Statements as of February 28, 2018

F-2 Balance Sheet

as of February 28, 2018

Assets Note 2.28.2018 2.28.2017 € 000s € 000s A. Non-current assets 1 I. Financial assets Interests in associates 78,006 103,726 78,006 103,726 B. Current assets 2 I. Receivables and other assets 1. Receivables from associates 25,917 197 2. Other assets 2,120 2,115 28,037 2,312

106,043 106,038

Equity and liabilities Note 2.28.2018 2.28.2017 € 000s € 000s A. Shareholders’ equity I. Share capital 30,000 30,000 II. Capital reserve 76,000 76,000 III. Other revenue reserves 19 19 106,019 106,019 B. Provisions 3 Other provisions 24 19

106,043 106,038

F-3 Income Statement

for the Period from March 1, 2017 to February 28, 2018

Note 2017/18 2016/17 € 000s € 000s 1. Other operating income 5 2 63 2. Gross profit 2 63 3. Depreciation of property, plant and equipment 0 9 4. Other operating expenses 6 33 36 5. Income from investments 7 49,103 54,070 6. Write-downs of financial assets 8 25,720 0 7. Interest result 9 1,150 1,284 8. Earnings after taxes 24,502 55,372 9. Profit transferred under a profit transfer agreement -24,502 -55,372 10. Annual net income 0 0

F-4 Notes to Annual Financial Statements

Application of the German Commercial Code (HGB) The annual financial statements of HORNBACH International GmbH have been prepared in accordance with the requirements of the German Commercial Code (HGB) and the German Limited Liability Companies Act (GmbHG). To enhance the clarity of presentation, we have grouped together individual items in the balance sheet and the income statement. These items are reported separately in the notes. The note disclosures required for individual line items are included in the notes to the annual financial statements.

Information about the company HORNBACH International GmbH, whose legal domicile is in Bornheim bei Landau/Pfalz, Germany, is entered in the Commercial Register (HRB 2636) at Landau/Pfalz District Court.

F-5 List of shareholdings HORNBACH International GmbH holds the following interests in associates:

Company name and domicile Shareholding Equity1) Net income Local in % in thousands, in thousands, currency local local currency currency Direct shareholdings HORNBACH Baumarkt CS spol s.r.o., Prague, Czech Republic 100°°) 2,626,342 483,866 CZK HORNBACH Baumarkt GmbH, Wiener Neudorf, Austria 100 75,336 4,966 EUR HL Immobilien Lambda GmbH, Wiener Neudorf, Austria 100 11,238 1,636 EUR HORNBACH Baumarkt Luxemburg SARL, Bertrange, Luxembourg 100 9,603 2,005 EUR HORNBACH Baumarkt (Schweiz) AG, Oberkirch, Switzerland 100 125,283 26,358 CHF HORNBACH Byggmarknad AB, Gothenburg, Sweden 100 75,349 -62,665 SEK HIAG Fastigheter i Sisjön AB, Gothenburg, Sweden 100 667 73 SEK HORNBACH Holding B.V., Amsterdam, Netherlands 100 119,675 23,4382) EUR HORNBACH Baumarkt SK spol s.r.o., Bratislava, Slovakia 100 27,171 2,638 EUR HORNBACH Asia Ltd., Kowloon, Hong Kong 100 6,394 1,661 HKD Indirect shareholdings HORNBACH Bouwmarkt (Nederland) B.V., Driebergen-Rijsenburg, Netherlands 100 14,221 14,203°) EUR HORNBACH Real Estate Apeldoorn B.V., Apeldoorn, Netherlands 100 20 0°) EUR HORNBACH Real Estate Enschede B.V., Enschede, Netherlands 100 20 0°) EUR HORNBACH Real Estate Breda B.V., Breda, Netherlands 100 1,905 1,885°) EUR HORNBACH Real Estate Best B.V., Nieuwegein, Netherlands 100 1,411 1,391°) EUR HORNBACH Real Estate Amsterdam-Sloterdijk B.V., Amsterdam, 100 Netherlands 1,235 1,224°) EUR HORNBACH Real Estate Tilburg B.V., Tilburg, Netherlands 100 948 930°) EUR HORNBACH Real Estate Groningen B.V., Groningen, Netherlands 100 914 896°) EUR HORNBACH Real Estate Wateringen B.V., Wateringen, Netherlands 100 1,480 1,460°) EUR HORNBACH Real Estate Alblasserdam B.V., Alblasserdam, Netherlands 100 825 805°) EUR HORNBACH Real Estate Nieuwegein B.V., Nieuwegein, Netherlands 100 1,456 1,436°) EUR HORNBACH Real Estate Nieuwerkerk B.V., Nieuwerkerk, Netherlands 100 1,456 1,139°) EUR HORNBACH Real Estate Geleen B.V., Geleen, Netherlands 100 733 724°) EUR HORNBACH Reclame Activiteiten B.V., Nieuwegein, Netherlands 100 -12 -2°) EUR HORNBACH Real Estate Den Haag B.V., The Hague, Netherlands 100 1,888 1,901°) EUR HORNBACH Real Estate Zwolle B.V., Zwolle, Netherlands 100 245 256°) EUR HORNBACH Real Estate Almelo B.V., Almelo, Netherlands 100 12 -1°) EUR HORNBACH Real Estate Duiven B.V., Duiven, Netherlands 100 -1,124 -534°) EUR G.N.E. Global Grundstücksverwertung GmbH, Wiener Neudorf, 955) Austria 768 481 EUR HORNBACH Centrala SRL, Domnesti, Romania 983) 101,2584) 12,3414) RON 1) Including annual net income for 2017/18. 5) HORNBACH Baumarkt AG holds a direct stake of 5.1% in 2) Value after updating of equity value of companies marked with °). G.N.E. Global Grundstücksverwertungs GmbH. 3) HORNBACH Baumarkt AG holds a direct stake of 1.6854% in Hornbach Centrala SRL. °) Included at equity in net income of Hornbach Holding B.V. 4) Equity and annual net income as per IFRS as of 2.28.2018 °°) 99.9967%, one share held by HORNBACH Baumarkt AG.

F-6 Currency translation table (exchange rates) in EUR:

Country Rate on reporting date Average rate 2.28.2018 2.28.2017 2017/18 2016/17 RON Romania 4.66300 4.52020 4.59266 4.49100 SEK Sweden 10.09230 9.56750 9.69801 9.49182 CHF Switzerland 1.15200 1.06480 1.12731 1.08530 CZK Czech Republic 25.41800 27.02100 26.05696 27.03226 HKD Hong Kong 9.55950 8.22520 9.02700 8.54064

Accounting policies The accounting policies applied in the previous year were retained in the year under report.

Financial assets are recognized at cost less any write-downs resulting from impairments expected to last for a longer period of time. Should the reasons for write-downs recognized in previous years no longer apply, then the assets are written up to a maximum of amortized cost.

Receivables and other assets are basically recognized at their nominal values. Individual risks are accounted for with suitable individual allowances. Non-interest-bearing receivables are recognized at their present values. Discounting is based on a risk-free interest rate with a congruent term.

Provisions are recognized for all discernible risks and uncertain liabilities. They are recognized at the settlement amount required on the basis of reasonable commercial judgement.

Liabilities are measured at their settlement amounts.

Foreign currency receivables and liabilities are translated using the exchange rate on the date on which they arise. Foreign currency receivables and liabilities with remaining terms of one year or less are measured using the average exchange rate as of the balance sheet date. For longer-term foreign currency receivables and liabilities, exchange rate losses are recognized as of the balance sheet date, while measurement gains are not accounted for.

Due to the company’s affiliation to the fiscal unity of the HORNBACH Baumarkt AG, deferred taxes are recognized on the level of the controlling company.

F-7 Notes to Balance Sheet

(1)Non-current assets

Non-current assets developed as follows in the 2017/18 financial year:

€ 000s Cost

3.1.2017 Additions Disposals Reclassification 2.28.2018 Financial assets

Interests in associates and investments 104,550 0 0 0 104,550 104,550 0 0 0 104,550 Total 104,550 0 0 0 104,550

Balance sheet Write-downs figures (accumu- (accumulated) Additions Disposals Reclassification Write-ups lated) 2.28.2018 2.28.2017 3.1.2017 2.28.2018

824 25,720 0 0 0 26,544 78,006 103,726 824 25,720 0 0 0 26,544 78,006 103,726 824 25,720 0 0 0 26,544 78,006 103,726

(2)Current assets

Of receivables due from associates of HORNBACH International GmbH, an amount of € 50,139k is due from the shareholder HORNBACH Baumarkt AG in connection with group financing (2016/17: € 55,279k). This was netted with the profit transferred of € 24,502k (2016/17: € 55,372k).

Of the other receivables due from HORNBACH Baumarkt AG, an amount of € 280k involves trade receivables (2016/17: € 291k).

Other assets mainly relate to two deposits of € 2,120k paid to secure potential retrospective claims to reductions in the purchase price on the part of the buyer of shares in two Austrian real estate companies (2016/17: € 2,115k). Of the deposits, an amount of € 1,763k has a remaining term of more than one year.

(3)Provisions

Provisions include internal and external year-end costs.

F-8 (4)Contingent liabilities

The letters of comfort and guarantees relate exclusively to contingent liabilities assumed in favor of direct and indirect subsidiaries of HORNBACH International GmbH. As the subsidiaries are, as a general rule, always furnished with sufficient equity, the risk of utilization is low.

By way of a syndicated loan agreement dated November 23, 2011, HORNBACH Baumarkt AG agreed a syndicated loan facility of € 250 million. This contract, which had a term until April 15, 2019, was prematurely terminated as of December 22, 2017.

By way of a syndicated loan agreement dated December 22, 2017, HORNBACH Baumarkt AG agreed a syndicated loan facility of € 350 million with a term until December 22, 2022. In this contract, HORNBACH International GmbH acts as guarantor and guarantees the punctual payment of all amounts relating to this contract.

HORNBACH International GmbH acted as guarantor for the corporate bond of € 250 million issued by HORNBACH Baumarkt AG on February 15, 2013.

F-9 Notes to Income Statement

The income statement has been prepared using the total cost method.

(5)Other operating income

Other operating income results from the reversal of provisions.

(6)Other operating expenses

Other operating expenses mainly include auditing costs for the annual financial statements and group allocations.

(7)Income from investments

The income of € 49,103k from investments (2016/17: € 54,070k) involves profit distributions from the following subsidiaries:

2017/18 2016/17 € 000s € 000s HORNBACH Holding B.V., Netherlands 0 10,000 HORNBACH Baumarkt CS spol s.r.o., Czech Republic 19,788 0 HORNBACH Baumarkt (Schweiz) AG, Switzerland 27,315 41,070 HORNBACH Baumarkt Luxemburg SARL, Luxembourg 2,000 3,000 49,103 54,070

(8)Write-downs of financial assets

The investment held in HORNBACH Byggmarknad AB, Gothenburg, Sweden, was written down in full (€ 25,720k) in the current financial year.

(9)Interest result

Of interest and similar income from associates, € 1,125k results from guarantee fees (2016/17: € 1,245k) and € 20k from short-term group financing (2016/17: € 33k).

F-10 Other Disclosures

A control and profit transfer agreement is in place with HORNBACH Baumarkt AG, Bornheim bei Landau/Pfalz.

The members of the management in the 2017/18 financial year were as follows: Roland Pelka Member of Board of Management (Deputy Chairman) of HORNBACH Baumarkt AG

Wolfger Ketzler Member of Board of Management of HORNBACH Baumarkt AG

Jan Hornbach Managing Director of HORNBACH International GmbH

The 2017/18 annual financial statements of HORNBACH International GmbH, Bornheim bei Landau/Pfalz, are included in the consolidated financial statements of HORNBACH Baumarkt AG, Bornheim bei Landau/Pfalz (smallest group of companies), and these in turn are included in the consolidated financial statements of HORNBACH Management AG, Annweiler am Trifels (largest group of companies). These are prepared in accordance with International Financial Reporting Standards (IFRS) as requiring application in the EU. The consolidated financial statements of HORNBACH Baumarkt AG and HORNBACH Management AG are published in the Federal Official Gazette.

Pursuant to § 291 (1) of the German Commercial Code (HGB), HORNBACH International GmbH is thus exempted from the obligation to prepare consolidated financial statements.

Bornheim bei Landau/Pfalz, May 14, 2018

(Jan Hornbach) (Wolfger Ketzler) (Roland Pelka)

F-11 Auditor’s Report

To HORNBACH International GmbH, Bornheim bei Landau/Pfalz

We have audited the annual financial statements, comprising the balance sheet, the income statement and the notes to the financial statements, together with the bookkeeping system, of HORNBACH International GmbH, Bornheim bei Landau/Pfalz, for the financial year from March 1, 2017 to February 28, 2018. The maintenance of the books and records and the preparation of the annual financial statements in accordance with German commercial law are the responsibility of the Company’s management. Our responsibility is to express an opinion on the annual financial statements, together with the bookkeeping system, based on our audit.

We conducted our audit of the annual financial statements in accordance with § 317 of the German Commercial Code (HGB) and the German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the annual financial statements in accordance with principles of proper accounting are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Company and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the books and records and the annual financial statements are examined primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that our audit provides a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, based on the findings of our audit, the annual financial statements comply with the legal requirements and give a true and fair view of the net assets, financial position and results of operations of the HORNBACH International GmbH in accordance with principles of proper accounting.

Frankfurt am Main, May 22, 2018

KPMG AG Wirtschaftsprüfungsgesellschaft

Bertram Palm German Public Auditor German Public Auditor

F-12 HORNBACH International GmbH Bornheim bei Landau/Pfalz

Annual Financial Statements as of February 28, 2019

F-13 Balance Sheet

as of February 28, 2019

Assets Note 2.28.2019 2.28.2018 € 000s € 000s A. Non-current assets 1 I. Financial assets Interests in associates 78,299 78,006 78,299 78,006 B. Current assets 2 I. Receivables and other assets 1. Receivables from associates 25,970 25,917 2. Other assets 1,767 2,120 27,737 28,037

106,036 106,043

Equity and liabilities Note 2.28.2019 2.28.2018 € 000s € 000s A. Shareholders’ equity I. Share capital 30,000 30,000 II. Capital reserve 76,000 76,000 III. Other revenue reserves 19 19 106,019 106,019 B. Provisions 3 Other provisions 17 24

106,036 106,043

F-14 Income Statement

for the Period from March 1, 2018 to February 28, 2019

Note 2018/19 2017/18 € 000s € 000s 1. Other operating income 0 2 2. Gross profit 0 2 3. Other operating expenses 5 37 33 4. Income from investments 6 47,118 49,103 5. Write-downs of financial assets 7 2,926 25,720 6. Interest result 8 1,160 1,150 7. Earnings after taxes 45,315 24,502 8. Profit transferred under a profit transfer agreement -45,315 -24,502 9. Annual net income 0 0

F-15 Notes to Annual Financial Statements

Application of the German Commercial Code (HGB) The annual financial statements of HORNBACH International GmbH have been prepared in accordance with the requirements of the German Commercial Code (HGB) and the German Limited Liability Companies Act (GmbHG). To enhance the clarity of presentation, we have grouped together individual items in the balance sheet and the income statement. These items are reported separately in the notes. The note disclosures required for individual line items are included in the notes to the annual financial statements.

Information about the company HORNBACH International GmbH, whose legal domicile is in Bornheim bei Landau/Pfalz, Germany, is entered in the Commercial Register (HRB 2636) at Landau/Pfalz District Court.

F-16 List of shareholdings HORNBACH International GmbH holds the following interests in associates:

Company name and domicile Shareholding Equity1) Net income Local in % in thousands, in thousands, currency local local currency currency

Direct shareholdings HORNBACH Baumarkt CS spol s.r.o., Prague, Czech Republic 100°°) 2,992,555 626,213 CZK HORNBACH Baumarkt GmbH, Wiener Neudorf, Austria 100 68,034 -3,301 EUR HL Immobilien Lambda GmbH, Wiener Neudorf, Austria 100 12,712 1,474 EUR HORNBACH Baumarkt Luxemburg SARL, Bertrange, Luxembourg 100 8,262 1,659 EUR HORNBACH Baumarkt (Schweiz) AG, Oberkirch, Switzerland 100 143,731 18,447 CHF HORNBACH Byggmarknad AB, Gothenburg, Sweden 100 9,435 -95,914 SEK HIAG Fastigheter i Trollhättan AB, Gothenburg, Sweden 100 3,569 -98 SEK HORNBACH Holding B.V., Amsterdam, Netherlands 100 127,709 28,0342) EUR HORNBACH Baumarkt SK spol s.r.o., Bratislava, Slovakia 100 19,884 2,713 EUR HORNBACH Asia Ltd., Kowloon, Hong Kong 100 8,434 2,040 HKD Indirect shareholdings HORNBACH Bouwmarkt (Nederland) B.V., Driebergen-Rijsenburg, Netherlands 100 21,819 21,801°) EUR HORNBACH Real Estate Apeldoorn B.V., Apeldoorn, Netherlands 100 20 0°) EUR HORNBACH Real Estate Enschede B.V., Enschede, Netherlands 100 20 0°) EUR HORNBACH Real Estate Breda B.V., Breda, Netherlands 100 1,945 1,925°) EUR HORNBACH Real Estate Best B.V., Nieuwegein, Netherlands 100 1,437 1,417°) EUR HORNBACH Real Estate Amsterdam-Sloterdijk B.V., Amsterdam, 100 Netherlands 1,214 1,194°) EUR HORNBACH Real Estate Tilburg B.V., Tilburg, Netherlands 100 935 917°) EUR HORNBACH Real Estate Groningen B.V., Groningen, Netherlands 100 897 879°) EUR HORNBACH Real Estate Wateringen B.V., Wateringen, Netherlands 100 1,590 1,570°) EUR HORNBACH Real Estate Alblasserdam B.V., Alblasserdam, Netherlands 100 691 671°) EUR HORNBACH Real Estate Nieuwegein B.V., Nieuwegein, Netherlands 100 1,571 1,551°) EUR HORNBACH Real Estate Nieuwerkerk B.V., Nieuwerkerk, Netherlands 100 1,405 1,087°) EUR HORNBACH Real Estate Geleen B.V., Geleen, Netherlands 100 743 734°) EUR HORNBACH Reclame Activiteiten B.V., Nieuwegein, Netherlands 100 -43 -31°) EUR HORNBACH Real Estate Den Haag B.V., The Hague, Netherlands 100 1,788 1,768°) EUR HORNBACH Real Estate Zwolle B.V., Zwolle, Netherlands 100 1,826 1,806°) EUR HORNBACH Real Estate Almelo B.V., Almelo, Netherlands 100 11 -1°) EUR HORNBACH Real Estate Duiven B.V., Duiven, Netherlands 100 -2,657 -1,533°) EUR G.N.E. Global Grundstücksverwertung GmbH, Wiener Neudorf, Austria 955) 1.242 475 EUR HORNBACH Centrala SRL, Domnesti, Romania 983) 122,5974) 20,4694) RON

1) Including annual net income for 2018/19. 5) HORNBACH Baumarkt AG holds a direct stake of 5.1% in 2) Value after updating of equity value of companies marked with °). G.N.E. Global Grundstücksverwertungs GmbH. 3) HORNBACH Baumarkt AG holds a direct stake of 1.6854% in Hornbach Centrala SRL. °) Included at equity in net income of Hornbach Holding B.V. 4) Equity and annual net income as per IFRS as of 2.28.2019. °°) 99.9967%, one share held by HORNBACH Baumarkt AG.

F-17 Currency translation table (exchange rates) in EUR:

Country Rate on reporting date Average rate 2.28.2019 2.28.2018 2018/19 2017/18 RON Romania 4.74340 4.66300 4.66621 4.59266 SEK Sweden 10.48440 10.09230 10.34089 9.69801 CHF Switzerland 1.13350 1.15200 1.14991 1.12731 CZK Czech Republic 25.60100 25.41800 25.69596 26.05696 HKD Hong Kong 8.96130 9.55950 9.14648 9.02700

Accounting policies The accounting policies applied in the previous year were retained in the year under report.

Financial assets are recognized at cost less any write-downs resulting from impairments expected to last for a longer period of time. Should the reasons for write-downs recognized in previous years no longer apply, then the assets are written up to a maximum of amortized cost.

Receivables and other assets are basically recognized at their nominal values. Individual risks are accounted for with suitable individual allowances. Non-interest-bearing receivables are recognized at their present values. Discounting is based on a risk-free interest rate with a congruent term.

Provisions are recognized for all discernible risks and uncertain liabilities. They are recognized at the settlement amount required on the basis of reasonable commercial judgement.

Liabilities are measured at their settlement amounts.

Foreign currency receivables and liabilities are translated using the exchange rate on the date on which they arise. Foreign currency receivables and liabilities with remaining terms of one year or less are measured using the average exchange rate as of the balance sheet date. For longer-term foreign currency receivables and liabilities, exchange rate losses are recognized as of the balance sheet date, while measurement gains are not accounted for.

Due to the company’s affiliation to the fiscal unity of the HORNBACH Baumarkt AG, deferred taxes are recognized on the level of the controlling company.

F-18 Notes to Balance Sheet

(1)Non-current assets

Non-current assets developed as follows in the 2018/19 financial year:

€ 000s Cost

3.1.2018 Additions Disposals Reclassification 2.28.2019 Financial assets

Interests in associates and investments 104,550 3,219 0 0 107,769 104,550 3,219 0 0 107,769 Total 104,550 3,219 0 0 107,769

Balance sheet Write-downs figures (accumu- (accumulated) Additions Disposals Reclassification Write-ups lated) 2.28.2019 2.28.2018 3.1.2018 2.28.2019

26,544 2,926 0 0 0 29,470 78,299 78,006 26,544 2,926 0 0 0 29,470 78,299 78,006 26,544 2,926 0 0 0 29,470 78,299 78,006

(2)Current assets

Of receivables due from associates of HORNBACH International GmbH, an amount of € 71,005k is due from the shareholder HORNBACH Baumarkt AG in connection with group financing (2017/18: € 50,139k). This was netted with the profit transferred of € 45,315k (2017/18: € 24,502k).

Of the other receivables due from HORNBACH Baumarkt AG, an amount of € 280k involves trade receivables (2017/18: € 280k).

Other assets relate to a deposit of € 1,767k paid to secure potential retrospective claims to reductions in the purchase price on the part of the buyer of shares in an Austrian real estate company (2017/18: € 2,120k).

(3)Provisions

Provisions include internal and external year-end costs.

(4)Contingent liabilities

The letters of comfort and guarantees relate exclusively to contingent liabilities assumed in favor of direct and indirect subsidiaries of HORNBACH International GmbH. As the subsidiaries are, as a general rule, always furnished with sufficient equity, the risk of utilization is low.

F-19 By way of a syndicated loan agreement dated December 22, 2017, HORNBACH Baumarkt AG agreed a syndicated loan facility of € 350 million with a term until December 22, 2022. In this contract, HORNBACH International GmbH acts as guarantor and guarantees the punctual payment of all amounts relating to this contract.

HORNBACH International GmbH acted as guarantor for the corporate bond of € 250 million issued by HORNBACH Baumarkt AG on February 15, 2013.

F-20 Notes to Income Statement

The income statement has been prepared using the total cost method.

(5)Other operating expenses

Other operating expenses mainly include auditing costs for the annual financial statements and group allocations.

(6)Income from investments

The income of € 47,118k from investments (2017/18: € 49,103k) involves profit distributions from the following subsidiaries:

2018/19 2017/18 € 000s € 000s HORNBACH Holding B.V., Netherlands 20,000 0 HORNBACH Baumarkt CS spol s.r.o., Czech Republic 10,118 19,788 HORNBACH Baumarkt SK spol s.r.o., Slovakia 10,000 0 HORNBACH Baumarkt GmbH, Austria 4,000 0 HORNBACH Baumarkt (Schweiz) AG, Switzerland 0 27,315 HORNBACH Baumarkt Luxemburg SARL, Luxembourg 3,000 2,000 47,118 49,103

(7)Write-downs of financial assets

The investment held in HORNBACH Byggmarknad AB, Gothenburg, Sweden, was written down by € 2,926k in the current financial year (2017/18: € 25,720k).

(8)Interest result

Of interest and similar income from associates, € 1,125k results from guarantee fees (2017/18: € 1,125k) and € 30k from short-term group financing (2017/18: € 20k).

F-21 Other Disclosures

A control and profit transfer agreement is in place with HORNBACH Baumarkt AG, Bornheim bei Landau/Pfalz.

The members of the management in the 2018/19 financial year were as follows: Roland Pelka Member of Board of Management (Deputy Chairman) of HORNBACH Baumarkt AG

Wolfger Ketzler Member of Board of Management of HORNBACH Baumarkt AG

Jan Hornbach Managing Director of HORNBACH International GmbH

The 2018/19 annual financial statements of HORNBACH International GmbH, Bornheim bei Landau/Pfalz, are included in the consolidated financial statements of HORNBACH Baumarkt AG, Bornheim bei Landau/Pfalz (smallest group of companies), and these in turn are included in the consolidated financial statements of HORNBACH Management AG, Annweiler am Trifels (largest group of companies). These are prepared in accordance with International Financial Reporting Standards (IFRS) as requiring application in the EU. The consolidated financial statements of HORNBACH Baumarkt AG and HORNBACH Management AG are published in the Federal Official Gazette.

Pursuant to § 291 (1) of the German Commercial Code (HGB), HORNBACH International GmbH is thus exempted from the obligation to prepare consolidated financial statements.

Bornheim bei Landau/Pfalz, May 14, 2019

(Jan Hornbach) (Wolfger Ketzler) (Roland Pelka)

F-22 Auditor’s Report

To HORNBACH International GmbH, Bornheim bei Landau/Pfalz

Opinion

We have audited the annual financial statements of HORNBACH International GmbH, Bornheim bei Landau/Pfalz, which comprise the balance sheet as at 28 February 2019, the statement of profit and loss for the financial year from 1 March 2018 to 28 February 2019 and notes to the financial statements, including the recognition and measurement policies presented therein.

In our opinion, on the basis of the knowledge obtained in the audit, the accompanying annual financial statements comply, in all material respects, with the requirements of German commercial law applicable to business corporations and give a true and fair view of the assets, liabilities and financial position of the Company as at 28 February 2019 and of its financial performance for the financial year from 1 March 2018 to 28 February 2019 in compliance with German Legally Required Accounting Principles.

Pursuant to Section 322 (3) sentence 1 of the German Commercial Code (HGB), we declare that our audit has not led to any reservations relating to the legal compliance of the annual financial statements.

Basis for the Opinion We conducted our audit of the annual financial statements in accordance with Section 317 HGB and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our responsibilities under those requirements and principles are further described in the “Auditor’s Responsibilities for the Audit of the Annual Financial Statements” section of our auditor’s report. We are independent of the Company in accordance with the requirements of German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the annual financial statements.

Responsibility of Management for the Annual Financial Statements Management is responsible for the preparation of the annual financial statements that comply, in all material respects, with the requirements of German commercial law applicable to business corporations, and for ensuring that the annual financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Company in compliance with German Legally Required Accounting Principles. In addition, management is responsible for such internal control as they, in accordance with German Legally Required Accounting Principles, have determined necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the annual financial statements, management is responsible for assessing the Company’s ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting, provided no actual or legal circumstances conflict therewith.

Auditor’s Responsibilities for the Audit of the Annual Financial Statements Our objective is to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, as well as to issue an auditor’s report that includes our opinion on the annual financial statements.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

F-23 Section 317 HGB and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the annual financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

 Obtain an understanding of internal control system relevant to the audit of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of this system of the Company.

 Evaluate the appropriateness of accounting policies used by management and the reasonableness of estimates made by management and related disclosures.

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor’s report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our respective opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to be able to continue as a going concern.

 Evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements present the underlying transactions and events in a manner that the annual financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Company in compliance with German Legally Required Accounting Principles. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Frankfurt am Main, 14 May 2019

KPMG AG

Wirtschaftsprüfungsgesellschaft

Bertram Palm

German Public Auditor German Public Auditor

F-24 Issuer

HORNBACH Baumarkt AG Hornbachstraße 11 76879 Bornheim Germany

Guarantor

HORNBACH International GmbH Hornbachstraße 11 76879 Bornheim Germany

Principal Paying Agent

Commerzbank Aktiengesellschaft Kaiserstraße 16 (Kaiserplatz) 60311 Frankfurt am Main Germany

Joint Lead Managers

Commerzbank Aktiengesellschaft HSBC Bank plc UniCredit Bank AG Kaiserstraße 16 (Kaiserplatz) 8 Canada Square Arabellastraße 12 60311 Frankfurt am Main London E14 5HQ 81925 München Germany United Kingdom Germany

Auditors

KPMG AG Wirtschaftsprüfungsgesellschaft Deloitte GmbH Wirtschaftsprüfungsgesellschaft The Squaire, Am Flughafen Reichskanzler-Mueller-Strasse 25 60549 Frankfurt am Main 68165 Mannheim Germany Germany

Legal Advisers

To the Issuer To the Joint Lead Managers Gleiss Lutz Linklaters LLP Taunusanlage 11 Taunusanlage 8 60329 Frankfurt am Main 60329 Frankfurt am Main Germany Germany

A39482371