Hornbach Holding Ag & Co. Kgaa · XETR:HBH
Hornbach Holding Ag & Co. Kgaa — Hornbach Hldg — FY 2021/22 Earnings Presentation
30 slides from Hornbach Holding Ag & Co. Kgaa's earnings presentation, May 17, 2022
Slide 1: Investor & Analyst Conference 2022
Investor & Analyst Conference 2022 HORNBACH Holding AG & Co. KGaA May 17, 2022 Page 1 Investor & Analyst Conference | May 2022 ©HORNBACH Group 2022
Slide 2: Disclaimer
Disclaimer This document has been prepared by HORNBACH Holding AG & Co. KGaA (the “Company”, and together with its consolidated subsidiaries, the “HORNBACH Group”) solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation, including any oral presentati
Slide 3: Albrecht Hornbach, CEO HORNBACH Management AG
Investor & Analyst Conference 2022 HORNBACH Holding AG & Co. KGaA Albrecht Hornbach, CEO HORNBACH Management AG May 17, 2022 Page 3 Investor & Analyst Conference | May 2022 ©HORNBACH Group 2022
Slide 4: One group – one listing
Delisting of HORNBACH Baumarkt AG completed as of February 28, 2022 One group – one listing ▪ HORNBACH Holding now holds Hornbach Familien 100% 90.86% of HORNBACH Baumarkt AG Free Float Treuhand GmbH ▪ Successful take-up rate of 62.50% 37.50% HORNBACH delisting offer Management AG HORNBACH Holding A
Slide 5: Homing & cocooning continues to be a trend
Homing & cocooning continues to be a trend Page 5 Investor & Analyst Conference | May 2022 ©HORNBACH Group 2022
Slide 6: Highlights: Financial year 2021/22
Highlights: Financial year 2021/22 At a glance: Another record-year achieved ▪ Net sales growth of +7.7% to € 5.9bn ▪ Online sales growth of +10.5% to € 944m ▪ Adjusted EBIT increased by +11% to € 363m ▪ Earnings per share at € 12.48; +20.8% ▪ Increased dividend proposed at € 2.40 Page 6 Investor &
Slide 7: Erich Harsch, CEO HORNBACH Baumarkt AG
Investor & Analyst Conference 2022 HORNBACH Holding AG & Co. KGaA Erich Harsch, CEO HORNBACH Baumarkt AG May 17, 2022 Page 7 Investor & Analyst Conference | May 2022 ©HORNBACH Group 2022
Slide 8: Only German DIY operator with growth in calendar year 2021
Total gross sales growth of the largest German DIY operators in 2020 and 2021 HORNBACH Baumarkt: Only German DIY operator with growth in calendar year 2021 Growth vs. 2020: (1.5%) (2.3%) 3.5% (13.1%) (10.8%) (3.5%) Growth vs. 2019: 6.0% 6.1% 20.5% (3.5%) 4.7% 1.5% 2021 2020 2019 OBI Bauhaus HORNBACH
Slide 9: Gaining further market share across Europe
Market share development in calendar year 2021 HORNBACH Baumarkt: Gaining further market share across Europe Large DIY stores > 1,000 sqm ▪ HORNBACH gained market share in almost all countries Market share of HORNBACH Baumarkt in % (GfK) where market statistic data is available ▪ Further market shar
Slide 10: Karin Dohm, CFO HORNBACH Management AG
Investor & Analyst Conference 2022 HORNBACH Holding AG & Co. KGaA Karin Dohm, CFO HORNBACH Management AG May 17, 2022 Page 10 Investor & Analyst Conference | May 2022 ©HORNBACH Group 2022
Slide 11: HORNBACH on track to deliver further organic growth
Expansion achievements in FY 2021/22 HORNBACH on track to deliver further organic growth Organic network expansion continued HORNBACH Group: European footprint (Mar 30, 2022) ▪ 5 new DIY stores in 2021/22: Trollhättan (SE), Cluj (RO), Apeldoorn (NL), Sirnach (CH), Paderborn (DE; replacement) ▪ Exten
Slide 12: Financial targets achieved – net sales slightly exceeded guided range
Financial achievement in FY 2021/22 Financial targets achieved – net sales slightly exceeded guided range Outlook (as of Dec 7, 2021): Result 2021/22: Net sales growth of +2% to +7% +7.7% to € 5.9bn Adjusted Outlook (as of Dec 7, 2021): Result 2021/22: EBIT € 330m to € 380m +11.1% to € 362.6m Invest
Slide 13: Net sales ahead of previous year's record level in all quarters
Net sales in € million Net sales ahead of previous year‘s record level in all quarters Net sales (Mar 1, 2021 – Feb 28, 2022) HORNBACH Group: Net sales per quarter 2-year change: +24.2% 2-y change: +25.4% +27.4% +22.9% +20.2% ▪ Sales on a significantly 1-year change: +7.7% 1-y change: +6.4% +3.8% +2
Slide 14: Growth in all geographies
HORNBACH Baumarkt: Like-for-like sales growth in % Growth in all geographies Like-for-like sales growth1) per quarter in % and stores open to private customers in % FY 2020/21 Q1 2021/22 Q2 2021/22 Q3 2021/22 Q4 2021/22 FY 2021/22 ▪ Like-for-like sales growth in all geographies, against strong prior
Slide 15: Proven growth strategy
Proven growth strategy Above sector growth increases productivity gap to competitors Like-for-like growth rate of the German DIY sector vs HORNBACH Sales per sqm (€) of HORNBACH and German competitors3) (calendar year)1)2) 16,000 Corona 200 DIY sector (DE) pandemic Sales per sqm (in €)4) 14,000 HORN
Slide 16: Further growth in E-commerce
HORNBACH Baumarkt: Net sales in € million from online channels Further growth in E-commerce 7.3% 8.7% 9.6% 16.7% 17.2% E-commerce share +10.5% ▪ E-commerce share of HORNBACH Baumarkt Direct delivery without store contact sales (incl. Click & Collect) again increased 944 and now at 17.2% Direct deliv
Slide 17: Tight cost management and cost structure further improved
Cost structure in % of net sales and gross margin Tight cost management and cost structure further improved ▪ Gross margin only slightly reduced 36.6% 36.0% 35.8% 35.2% 35.0% amid a challenging market 33.1% 33.5% 31.8% environment 29.8% 5.2% 29.4% 5.1% General and 4.9% ▪ Selling and store expenses 4
Slide 18: Adjusted EBIT well ahead of pre-Covid levels
Financial year adjusted EBIT1) in € million and adj. EBIT margin in % Adjusted EBIT well ahead of pre-Covid levels ▪ Resilient group profitability despite Adjusted EBIT margin: higher purchasing and shipping costs 4.0% 3.1% 4.8% 6.0% 6.2% ▪ Adjusted EBIT on Group level up 11.1% +59.7% in FY 2021/22
Slide 19: Adjusted EBIT above previous year's record level
Fiscal year segment adj. EBIT in € million and segment adjusted EBIT margin in % Adjusted EBIT above previous year‘s record level Operational segments Geographical segments ▪ HORNBACH Baumarkt: adj. EBIT +12.9%; € +35.9m ▪ Germany +7.5% / other Europe +13.1% ▪ HORNBACH Baustoff: adj. EBIT +44.4%; €
Slide 20: Significant increase in other key earnings figures
Earnings before taxes and net income in € million Significant increase in other key earnings figures ▪ Earnings before taxes increased by Tax rate 27.2% 23.7% 25.8% 24.3% 22.2% 18.1% to € 314.3m EPS € 5.11 € 4.08 € 6.56 € 10.33 € 12.48 ▪ Net income increased by 21.4% to € 244.5m Earnings before taxe
Slide 21: Dividend increase proposed for financial year 2021/22
Dividend per share in € and EPS in € Dividend increase proposed for financial year 2021/22 Dividend Total Shareholder Return 2021/22: 14.00 12.48 EPS 12.00 52.9% 10.00 Dividend policy 8.00 ▪ Sustainable pay-outs: 6.00 Continuous dividend payments since IPO 1) 4.00 2.40 1.50 1.50 1.50 1.50 1.50 2.00
Slide 22: Increased funds from operations – higher working capital
Cash flow in € million Increased funds from operations – higher working capital 2019/20 2020/21 2021/22 ▪ Further increase in funds from operations Cash flow from operating activities 324.5 346.5 344.9 countered by higher working capital requirements in preparation for the spring season of which: fu
Slide 23: Strong balance sheet structure
Balance sheet in € million Strong balance sheet structure Total Total equity 4,008 4,306 assets 4,306 4,008 and liabilities 332 Liquid funds ▪ Increase in inventories by € 238m due 435 Current liabilities to higher stock levels in preparation 1,079 845 Inventories. accounts for spring season 1,395 r
Slide 24: Carbon footprint
Carbon footprint CO2 footprint measured for the first time – targets to be defined in 2022/23 Greenhouse gas emissions in metric tons of CO2e 2020/21 2021/22 Measures to reduce carbon already implemented: Scope 11) 32,185 40,308 ▪ Building control technology Natural gas 21,736 25,791 Heating Oil 2,4
Slide 25: Structural growth foundation
Structural growth foundation Covid related trends to continue – opportunity to expand in other market segments Global industry trends Growth opportunities beyond DIY market ▪ Industry experts predict a “decade of the home”1) with ▪ DIY stores currently account for 9% of the German home improvement m
Slide 26: Outlook for FY 2022/23
Guidance and store openings Outlook for FY 2022/23 HORNBACH Baumarkt: Store openings in 2022/23 Net sales 2022/23 Slightly above 2021/22 Net sales 2021/22 € 5,875m Adjusted EBIT 2022/23 Slightly below 2021/22 Enschede 30/03/2022 Leipzig Adjusted EBIT 2021/22 € 362.6m Additional items Nitra 16/03/202
Slide 27: Key investment highlights
HORNBACH – one of Europe’s most attractive home improvement stocks Key investment highlights Efficient and Attractive customer Proven growth Structural scalable set up proposition strategy growth foundation ▪ Organically grown network of ▪ Focus on project and ▪ Ongoing physical expansion: ▪ “Cocoon
Slide 28: Upcoming events & contact
Upcoming events & contact Financial Calendar May 24, 2022 dbAccess German Corporate Conference 2022 Investor Relations contact May 25, 2022 German Spring Conference 2022 (Equity Forum) Antje Kelbert (+49) 0 63 48 / 60 – 2444 June 15, 2022 ERSTE Group Consumer Conference 2022 antje.kelbert@hornbach.c
Slide 29: Appendix
Appendix Page 29 Investor & Analyst Conference | May 2022 ©HORNBACH Group 2022
Slide 30: Key figures: 10-year overview
Key figures: 10-year overview In € million unless otherwise stated 2021/22 2020/21 2019/20 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 Net sales 5,875 5,456 4,729 4,362 4,141 3,941 3,755 3,572 3,369 3,229 of which in Germany 3,149 2,985 2,536 2,376 2,312 2,262 2,223 2,172 2,035 1,949 of