HORNBACH Baumarkt : Analystenpräsentation Q3/9M 2020/21 (englisch)

Analyst Call Q3 2020/21

HORNBACH Group

December 22, 2020

Paderborn, Germany

161 DIY megastores in Europe

Status: November 30, 2020

Oradea (30/09/2020)

36 Builders merchant outlets

in Germany (34) and France (2)

Analyst Call Q3 2020/21

• 161 DIY megastores in 9 countries
• Sales area of 1,904,429 sqm
• Ø store size 11,829 qm

Country	Number of stores	Sales area in sqm
Austria	14	168,867
Czech	10	140,880
Republic
Germany	96	1,052,590
Luxembourg	1	12,087
Netherlands	15	193,789
Romania	7	101,872
Slovakia	4	58,248
Sweden	7	86,104
Switzerland	7	89,992

©HORNBACH Group 2020

Page 2

Impact of the coronavirus pandemic on store operations Q3/Q4 2020/21

Country	Period of closure for private customers			Number of		Major exemptions
				stores
					Different regulations in the federal states, but general trends are:
Germany	16/12/2020 to 10/1/2021	Q4		96	▪ Mostly open to commercial customers
	▪	Mostly reserve and collect/deliver
					▪ Christmas tree sale permitted
Luxembourg	No restrictions on sales			1
Netherlands	15/12/2020 to 19/1/2021	Q4		15	▪ Open to commercial customers
	▪	Reserve and collect/deliver
Austria	17/11/2020 to 6/12/2020	Q3		14	▪	Open to commercial customers
			▪	Reserve and collect/deliver
26/12/2020 to 17/1/2021	Q4
Romania	No significant restrictions on sales			7	▪ Weekend closure in regions with a high incidence rate (Sibiu)
		▪	Amended opening hours
Sweden	No restrictions on sales			7
Switzerland	No significant restrictions on sales			7	▪	Amended opening hours
		▪	No Sunday and Holiday openings
					▪ Open to commercial customers
Slovakia	19/12/2020 to 10/01/2021	Q4		4	▪	Reserve and collect/deliver
					▪ Christmas tree sale permitted
					▪ Open to commercial customers
Czech Republic	22/10/2020 to 2/12 2020	Q3		10	▪	Reserve and collect/deliver
	▪	Garden center and drive through open to private customers
					▪	Amended opening hours
Group				161
	Analyst Call Q3 2020/21			©HORNBACH Group 2020	Page 3

Sales growth in Q3 and 9M 2020/21

Net sales in Q3

in € million

+20.3%

1,371

662

1,139

526

+25.9%

613

528 +16.0%

	12.8%
85	95

2019/202020/21

Net sales in 9M

in € million

+20.2%

4,503

2,219

3,745

1,782

+24.5%

2,005

1,717

+16.7%

245	13.5%	278

2019/202020/21

HORNBACH Baumarkt

AG [Deutschland]

HORNBACH Baumarkt

AG [International]

HORNBACH Baustoff

Union

Analyst Call Q3 2020/21

©HORNBACH Group 2020

Page 4

Like-for-like sales growth and outperformance

Like-for-like sales growth*

in % - HORNBACH Baumarkt subgroup

	Q1 2020/21	Q2 2020/21	Q3 2020/21	9M 2020/21
Total	17,5	21.4	19.7	19.5
Germany	24.4	24.1	25.5	24.6
International	10.3	18.6	14.0	14.3
Austria	7.6	18.9	15.3	13.7
Czech	7.4	6.8	-8.7	2.3
Republic
Luxembourg	17.3	46.1	31.4	31.3
Netherlands	22.1	20.8	19.5	20.8
Romania	17.9	27.0	19.2	21.3
Slovakia	-26.5	6.8	8.8	-4.2
Sweden	22.4	25.4	22.4	23.4
Switzerland	-0.6	19.4	19.1	11.9

HORNBACH vs DIY sector2) in Germany

(Calendar Year)

29.2

22.9	23.4	22.0

14.215.4

10.5

6.0

Q1 2020	Q2 2020	Q3 2020	9M 2020
		HORNBACH (DE)		DIY sector (DE)

1) In constant currencies; includes sales from all stores that have been open for at least one year as well as sales from online shops

2) Source: GfK TSR, DIY Superstores (>1000 sqm)

* in constant currencies

Analyst Call Q3 2020/21

©HORNBACH Group 2020

Page 5

Operating earnings before interest and taxes (EBIT) - Adjusted EBIT

HORNBACH Group

Adjusted EBIT

in € million

+67.2%

401.5

66.9

Segments

HBM:	HORNBACH Baumarkt subgroup
HBU:	HORNBACH Baustoff Union GmbH
HI:	HORNBACH Immobilien AG
ZK:	Corporate Functions and Consolidation
	359.8

Reconciliation

in € million

	9M	9M
	2019/20	2020/21
EBIT	240.6	402.5
Non-operating	-0.4	-0.9
earning items

			Q3			9M 2019/20
240.2	161.9				9M 2020/21
	Q2
41.8			200.9
		Q1
101.5

Adjusted EBIT*

240.2

401.5

172.8			43.1 43.7
96.9
		10.0
5.5

2019/20	2020/21			-9.2-12.1
	HBM	HBU	HI	ZK

Rounding differences

Analyst Call Q3 2020/21

*adjusted to exclude non-operating earnings items, e.g. impairment losses on assets, income from disposals of properties, income from write-ups of assets impaired in previous years

©HORNBACH Group 2020

Page 6

Cash flow and investments - 9 months (€ million)

HORNBACH Group

Cash flow from operating activities

of which: funds from operations

of which: D&A of rights of use of leased objects (IFRS 16)

of which: change in working capital

Cash flow from investing activities

of which: investments in fixed and intangible assets

of which: short term financial investments

Cash flow from financing activities

of which: repayment of lease liabilities (IFRS 16)

of which: proceeds from taking up long- term debt

Cash-effective change in cash and cash equivalents

9M 2019/20

346.9

298.9

70.1

48.0

-342.6

-104.1

-247.1

143.1

-63.6

248.1

147.4

9M 2020/21

583,0

413.1

68.5

169.9

-103.3

-107.7*

0

-103.2

-64.3

0

376.5

CAPEX 9M 2020/21

4%

39%

57%

Real estate

Plant and office equipment

Intangible assets

* of which 94.3 € million in HBM subgroup

Analyst Call Q3 2020/21

©HORNBACH Group 2020

Page 7

Group Balance Sheet Structure (€ million)

HORNBACH Group

3,760	4,104	Total	Total Equity	4,104	3,760
Assets	and liabilities
		Liquid funds	Current liabilities
	743	of which current	877
368
		lease liabilities*:
	Inventories. accounts		666
		81 € million
		receivable and other
		(Feb 2020: 82 € million)
		assets
995	967
			Non-current liabilities	1,382
			of which non-current	1,490
			lease liabilities*:
			686 € million
			(Feb 2020: 713 €
		Non-current assets	million)
2,397	2,394	of which right-of-use assets*:	Shareholders' equity
		710 € million	1,846	1,604
		(Feb 2020: 741 € million)
				45.0%	42.7%

February 29, 2020	November 30, 2020	November 30, 2020	February 29, 2020
*IFRS 16 leasing standard			Rounding differences
	Analyst Call Q3 2020/21	©HORNBACH Group 2020	Page 8

Group Balance Sheet Structure (€ million)

HORNBACH Baumarkt Subgroup

3,564	3,857	Total
Assets
	655	Liquid funds
302
	Inventories. accounts
		receivable and other
902	865	assets
2,360	2,336	Non-current assets
of which right-of-use assets*:
		1,164€ million
		(Feb 2020: 1,218 €m)

Total Equities	3,857	3,564
and Liabilities
Current liabilities	798
of which current
lease liabilities*:		668
136 Mio. €
(Feb 2020: 139 €m)
Non-current liabilities
of which non-current	1,718
lease liabilities*:	1,764
1,101 Mio. €
(Feb 2020: 1,145 €m)
Shareholders' equity	1,341	1,132
	34.8%	31.8%

February 29, 2020	November 30, 2020	November 30, 2020	February 29, 2020
*IFRS 16 leasing standard			Rounding differences
	Analyst Call Q3 2020/21	©HORNBACH Group 2020	Page 9

New Store Openings and Outlook FY 2020/21

HORNBACH Baumarkt Subgroup

Opening in Q4: 2 "Bodenhaus" stores

in Berlin and Cologne

	HORNBACH Group	HORNBACH
			Baumarkt Subgroup
Sales 2020/21	Outlook adjusted on 9/11/2020 (Adhoc):
	Growth between	Growth between
	13% - 17%	14% - 18%
Sales 2019/20	4,729 € million	4,428 € million
Adjusted EBIT	Outlook adjusted on 9/11/2020 (Adhoc):
2020/21
	290	- 360 € million	240	- 310 € million
Adjusted EBIT	227	€ million	182	€ million
2019/20
Capex 2020/21	155	- 175 € million	150	- 170 € million
Capex 2019/20	131 € million	97 € million

Analyst Call Q3 2020/21

©HORNBACH Group 2020

Page 10

Financial Calendar

December 22, 2020	Financial Update 3rd Quarter of 2020/21 as of November 30, 2020	Contact
	Trading Statement (FY) as of February 28, 2021	Investor Relations
March 23, 2021
		Axel Müller
May 27, 2021	Annual Report 2020/21 as of February 28, 2021	(+49) 0 63 48 / 60 - 2444
	DVFA Analyst Conference of HORNBACH Baumarkt AG	[e-mail]
		Anne Spies
		(+49) 0 63 48 / 60 - 4558
		[e-mail]
		www.hornbach-group.com

DISCLAIMER

This presentation is to be read in the context of the audited financial data of the HORNBACH Holding Group and the disclosures made in the notes to the

consolidated financial statements contained in the annual report. It contains statements relating to the future based on assumptions and estimates made by HORNBACH's Board of Management. Forward-looking statements are only valid at the time at which they are made. Although we assume that the expectations reflected in these forecast statements are realistic, the company can provide no guarantee that these expectations will turn out to be accurate. The assumptions may involve risks and uncertainties which could result in actual events differing significantly from the forecast statements. Such factors include those discussed in the "Risk Report" and "Outlook" of the annual report. We do not assume any obligation to update the forward-looking statements contained in this presentation.

Analyst Call Q3 2020/21

©HORNBACH Group 2020

Page 11

Analyst Call Q3 2020/21

HORNBACH Group

December 22, 2020