3Rd Quarter / 9 Months 2016/2017
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HORNBACH Factbook 3rd Quarter / 9 months 2016/2017 Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 1 History HORNBACH Group 1877 Foundation 2003 Sweden 1968 1st DIY store with 2004 Slovakia garden center 2004 Emission High Yield bond (6.125%) 1980 1st DIY megastore 2006 HORNBACH wins German 1987 Going public HORNBACH „Handelspreis“ HOLDING Group 2007 Romania 1993 Going public HORNBACH- Baumarkt Subgroup 2007 Lifetime Award for Otmar Hornbach 1996 Austria 2008 Retailer of the Year in Germany 1997 Netherlands 2010 Start of Multi-Channel Retailing 1998 Czech Republic 2013 Emission Eurobond (3.875%) 2001 „Zuckerhut“ Award 2015 Change in legal form of HORNBACH Holding AG into „KGaA“ 2002 Switzerland Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 2 Shareholder Structure HORNBACH Group 100% HORNBACH Familien Free Float Treuhand GmbH HORNBACH 56.25% 43.75% Management AG 5 (General Partner) 1 0 2 HORNBACH Holding AG & Co. KGaA , 4 Neustadt/Weinstraße c 2 Free Float 1 r Listed Ordinary Shares Management e (ISIN DE0006083405) b o t c 23.6% 76.4% 100%100% O e c n i s HORNBACH Baumarkt AG³ HORNBACH HORNBACH Bornheim Immobilien AG3 Baustoff Union Listed Ordinary Shares² Bornheim GmbH3 (ISIN DE0006084403) Not listed Neustadt/Weinstraße Not listed 1 Number of shares: 16,000,000 / Stock market code: HBH 2 Number of shares: 31,807,000 / Stock market code: HBM 3 plus other subsidiary companies in Germany and abroad Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 3 Group Structure HORNBACH Group Neustadt/Weinstrasse 6 100%76.4% 100% 1 0 2 , 0 3 r e b Property Development 27 Outlets m 154 DIY and garden stores e within Builders‘ merchant v HORNBACH Group o 1.8 million sqm sales area business N in 9 countries South-West Germany (25) France (2) Germany (98) Austria (14), Netherlands (11), Czech Republic (10), Luxembourg (1), Switzerland (6), Sweden (5), Slovakia (3), Romania (6) Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 4 Network HORNBACH Group Germany 25 x 98 stores 2 x 1,049,300 sqm 6 1 154 DIY stores Austria Romania 0 2 in 9 countries 14 stores 6 stores , 0 168,600 sqm 86,600 sqm 3 sales area: r e 1.8 million sqm b Czech Republic Slovakia m 10 stores e store size: 3 stores v o Ø 11,600 sqm 139,800 sqm 46,300 sqm N Luxembourg Sweden 1 store 5 stores 12,100 sqm 73,100 sqm Netherlands Switzerland 11 stores 6 stores 137,700 sqm 78,000 sqm Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 5 € 132 m 1987/1988 1988/1989 1989/1990 1990/1991 1991/1992 HORNBACH Group Sales 1992/1993 1993/1994 1994/1995 Growth Factbook Q3/9M 2016/20171995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 ©HORNBACH Group 20162006/2007 2007/2008 2008/2009 2009/2010 € 2010/2011 3.76 bn 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 Page 6 Expansion HORNBACH Baumarkt AG FY 2015/2016: 4000 RO € 3.54 bn SK 3500 SE CH 3000 CZ n L o 2500 NL i l l A 43% i m € 2000 n i s e 35% l 1500 a S t e N 1000 65% 57% 500 0 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2015/2016 Germany International Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 7 Jobmachine HORNBACH Group 17,373 12,014 7,386 3,924 1,372 613 1987/1988 1995/1996 2000/2001 2005/2006 2015/2016 Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 8 Market Position – Strategy – Growth Opportunities Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 9 Top 6 Ranking (2015): German DIY Retailers HORNBACH Baumarkt AG 5,623 5,230 Net Sales (Europe): HORNBACH ranks #3 … 3,535 2,462 2,277 1,410 n o i l l i m € OBI Bauhaus HORNBACH ZEUS/Hagebau Toom Globus/Hela n i s e …butis #1 in sales per store (€ million) …andsalespersqm(€) l a S 23.1 t e 19.8 2,023 N 1,683 1,709 13.6 1,201 1,114 1,049 8.9 6.7 4.5 OBI Bauhaus HORNBACH Zeus/Hagebau Toom Globus/Hela OBI Bauhaus HORNBACH Zeus/Hagebau Toom Globus/Hela [Source: Dähne, Company information] Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 10 Net Sales in € million [Source: Dähne, Company information] Groupe Adeo Kingfisher OBI Bauhaus Hornbach Kesko DT Group Zeus/Hagebau Toom Bricomarché 15,306 14,257 Top 10 Ranking (2015): European DIY 5,762 Factbook Q3/9M 2016/2017 HORNBACH Baumarkt AG 5,231 3,535 3,209 2,469 ©HORNBACH Group 2016 Retailers 2,440 2,277 1,988 Page 11 Average store size, net sales and sales densities (2015): HORNBACH Baumarkt AG Bubble size = total net sales (Europe) 14.000 ) OBI m q 12.000 s Bauhaus n i Megastore ( 10.000 HORNBACH e z i Toom s e 8.000 Globus/Hela r o t Zeus/Hagebau s 6.000 e Eurobaustoff g a r e 4.000 EMV-Profi v a Hellweg 2.000 0 750 1.000 1.250 1.500 1.750 2.000 Net Sales / sqm [Source: Dähne, HORNBACH] Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 12 Like-for-like Sales in Germany HORNBACH Baumarkt AG 140 + 36% DIY-Sector (D) 130 HORNBACH (D) 120 % 0 0 1 110 = 8 9 9 100 1 90 -12% 80 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e [Source: BHB, HORNBACH] Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 13 in % of DIY store sales [Source: BHB/GfK DIY-Panel (until 2013), GfK DIY-TSR (from 2014), HORNBACH] 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 4.9 7.1 Factbook Q3/9M 2016/2017 HORNBACH Baumarkt AG Market Share (Germany) 8.5 10.0 ©HORNBACH Group 2016 11.0 11.1 Page 14 Strategy HORNBACH Baumarkt AG HORNBACH is the top address for DIY projects Every-day- Superior Project-oriented low-price product offering services Megastore network Sophisticated Continuing & multi-channel retailing logistics & IT internationalisation Outperforming the DIY market & delivering a unique customer experience Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 15 “We’re a Project DIY Store” HORNBACH Baumarkt AG Partner for project customers and professionals. Top quality specialist advice. Added value with our product range and service offerings. Everything in stock. Making shopping easier. Unique advertising campaigns. Every-Day-Low-Price. Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 16 Customers across Europe honor HORNBACH‘s concept HORNBACH Baumarkt AG Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 17 Store Formats HORNBACH Baumarkt AG . Prime locations . Generates economies of scale . Focus on big catchment areas in store operation and store development . Large store format . Meets customers needs and provides superior shopping experience . Homogeneous store network Store Type Selling Space CapEx 1) (BHB weighted) HORNBACH 4 8,500 – 10,999 sqm Type 4 15 – 20 €m (incl. drive thru) HORNBACH5 Type 5 11,000 – 14,999 sqm 20 – 25 €m HORNBACH 6 ≥ 15,000 sqm Type 6 25 – 30 €m (incl. drive thru) HORNBACH Typ 2 Type 2 („HORNBACH Compact“) 2) ~ 800 sqm ~ 2 €m 1) average CapEx for property and building 2) currently in trial phase Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 18 Property Ownership and Hidden Reserves HORNBACH Group No. of stores Sales area in % Most recent DIY property transactions 2016/2017 Property HI Property HBM 11 4 Operating Leases 8% 2% Finance Lease Rental Multiplier: 6 Misc. 1 0 x21 2 , 44 29% (December 2016) 9 2 y 34% r 53 u a r b e 27% F 41 Rental Multiplier: Hidden FY 15/16 Book value Yield value Reserves x16,5 (x13) (€ million) (x13) (January 2017) Baumarkt Subgroup 545 823 278 Immobilien Subgroup 446 805 359 HORNBACH Group 991 1,628 637 Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 19 Online share of DIY retail market (Deutschland) HORNBACH Baumarkt AG Online share of DIY retail market (Germany) In 2014, online retail accounted for around 5% of DIY sales in Germany. Industry experts expect e-commerce to account for 25% of sales by 2030. 25.0% 5.0% 2014 2030e [Source: IFH, BHB, Roland Berger] Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 20 Sustainable Multichannel Strategy HORNBACH Baumarkt AG . Since launching its webshop in December 2010, HORNBACH has Germany’s most extensive online range of construction and renovation products. Catalyst for EDLP transparency and price awareness . Time-saving: “Reserve online & collect in-store” . Spill-over benefits for our stores . Additionally addressing customers living outside of the catchment areas of our stationary stores . International roll-out Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 21 Going Live Road-Map HORNBACH Baumarkt AG Country Start of Online Shop Number of SKUs (November 2016) Germany December 2010 127,000 Austria January 2013 98,000 Switzerland November 2014 86,000 Netherlands March 2015 47,000 Czech Republic December 2015 23,000 Luxembourg December 2015 87,000 Romania / Slovakia / Sweden scheduled for 2017/2018 Advantages of stationary retail Advantages of online retail Factbook Q3/9M 2016/2017 ©HORNBACH Group 2016 Page 22 Elaborated Supply Chain Management Ensures Europe-wide Logistics (B2B) . Sophisticated merchandise management in conjunction with our homogeneous store network .