Hornbach Holding Ag & Co. Kgaa · XETR:HBH

Hornbach Holding Ag & Co. Kgaa — Hornbach Hldg — Q2 2024 Earnings Presentation

19 slides from Hornbach Holding Ag & Co. Kgaa's earnings presentation, Sep 27, 2023

  1. Slide 1: Update Call Q2/H1 2023/24

    Update Call Q2/H1 2023/24 HORNBACH Holding AG & Co. KGaA September 27, 2023, 8:30 a.m. CEST Page 1 Update Call Q2/H1 2023/24 | September 27, 2023 ©HORNBACH Group 2023 20230927

  2. 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

  3. Slide 3: Update Call Q2/H1 2023/24 - Karin Dohm (CFO)

    Update Call Q2/H1 2023/24 HORNBACH Holding AG & Co. KGaA Karin Dohm (CFO) September 27, 2023, 8:30 a.m. CEST Page 3 Update Call Q2/H1 2023/24 | September 27, 2023 ©HORNBACH Group 2023 20230927

  4. Slide 4: Sales and earnings stabilizing in Q2

    HORNBACH Group: H1 2023/24 Financial Update Sales and earnings stabilizing in Q2 Q2 sales increase driven by robust sales performance at HORNBACH Baumarkt  Q2 2023/24 net sales increased by 1.1% to € 1,667.9m – HORNBACH Baumarkt net sales up by 1.9% with strong development in the Netherlands  HORN

  5. Slide 5: Investing in ICR footprint and ESG while continuing to optimize processes

    Operational Highlights Investing in ICR footprint and ESG while continuing to optimize processes Investing in growth Optimizing processes Advancing ESG initiatives  New logistics center in Essingen  Continuous roll-out of process automation  20 new photovoltaic systems installed on (Germany) tool

  6. Slide 6: Stable net sales in H1 2023/24 close to previous year's record level

    Consolidated net sales in € million Stable net sales in H1 2023/24 close to previous year‘s record level H1 net sales (Mar 1 – August 31)  H1 net sales HORNBACH Baumarkt subgroup -0.3%  Q1: -2.2%; Q2: +1.9% HORNBACH Baustoff Union  Germany: -2.4%; Other Europe: +1.8% HORNBACH Baumarkt AG  H1 net

  7. Slide 7: Like-for-like sales trend positive in Q2

    HORNBACH Baumarkt: Like-for-like sales growth in % Like-for-like sales trend positive in Q2  Demand impacted in Q1 by unfavorable Like-for-like sales growth1) per quarter and half year in % weather conditions at the start of the main Q1 2022/23 Q2 2022/23 H1 2022/23 Q1 2023/24 Q2 2023/24 H1 2023/24

  8. Slide 8: HORNBACH Baumarkt: Gaining further market share

    Market share Jan – Jul 2023 in % HORNBACH Baumarkt: Gaining further market share Large DIY stores > 1,000 sqm  HORNBACH continued to gain market share (GfK) Market share of HORNBACH Baumarkt January – July 2023 in % (GfK) in key markets between January and July 2023  Strong market share gains in t

  9. Slide 9: E-commerce share remaining well above pre-Covid levels

    HORNBACH Baumarkt: Net sales in € million from online channels E-commerce share remaining well above pre-Covid levels  E-commerce share of HORNBACH 9.8% 13.6% 19.2% 14.8% 13.2% E-commerce share Baumarkt sales (incl. Click & Collect) at 13.2% in H1 2023/24 Click & Collect Direct delivery  Direct de

  10. Slide 10: Gross margin stabilizing – cost structure impacted by higher wages and impairments

    Cost structure in % of net sales and gross margin Gross margin stabilizing – cost structure impacted by higher wages and impairments  Gross margin lower amid a more € million Q2 Q2 Change in H1 H1 Change in challenging market environment – 2022/23 2023/24 % 2022/23 2023/24 % stabilization at the en

  11. Slide 11: Profit development reflects lower gross margin and wage increases

    Adjusted EBIT1) in € million and adjusted EBIT margin in % Profit development reflects lower gross margin and wage increases  Adjusted EBIT on Group level down 13% in Adjusted EBIT and adjusted EBIT margin H1: Q2 2023/24 and 20% in H1 2023/24 vs. 7.6% 10.7% 10.2% 8.0% 6.4% previous year 198.4 334.7

  12. Slide 12: Active management of gross margin and inventory going forward

    Measures to counter macroeconomic pressures Active management of gross margin and inventory going forward Gross margin improvement targeted On track with inventory reductions  Maintaining focus on competitive  Inventories down 14% despite pricing (EDLP strategy) to protect inflation effects market

  13. Slide 13: Working capital reduction reflects successful inventory management and reverse factoring

    H1 cash flow in € million Working capital reduction reflects successful inventory management and reverse factoring H1 2022/23 H1 2023/24  Change in working capital includes repayments from the reverse factoring program (€ 250m), which were Cash flow from operating activities 253.2 122.6 partly offs

  14. Slide 14: Strong balance sheet structure

    Balance sheet in € million Strong balance sheet structure Assets Equity & Liabilities  Successful reduction of 4,726 4,726 inventories by € 191m 4,473 4,473 437 according to plan 349 Liquid funds 1,366 1,053 Current liabilities Inventories.  Decrease in liabilities 1,571 accounts receivable (long-

  15. Slide 15: Proven resilience through cycles

    Resilient business model Proven resilience through cycles Like-for-like growth rate of the German DIY sector / German GDP vs HORNBACH (calendar year)1)2)  Consistent outperformance of both the DIY sector (DE) HORNBACH (DE) GDP (DE) Retail trade DIY industry and broader retail sector 180  History o

  16. Slide 16: Addressing current challenges while pursuing long-term opportunities

    Conclusions Addressing current challenges while pursuing long-term opportunities  Focused on improving efficiency and actively managing costs and inventory  Maintaining price leadership and ensuring we remain a reliable partner to our customers  Continuing to invest in our ICR strategy and digita

  17. Slide 17: Q&A

    Q&A Page 17 Update Call Q2/H1 2023/24 | September 27, 2023 ©HORNBACH Group 2023

  18. Slide 18: Upcoming events & contact

    Upcoming events & contact Financial Calendar Investor Relations contact November 16, 2023 BofA Consumer & Retail Conference, Paris Antje Kelbert November 20, 2023 Equity Forum Winter 1on1 Summit (virtual) (+49) 0 63 48 / 60 – 2444 antje.kelbert@hornbach.com November 27, 2023 Deutsches Eigenkapitalfo

  19. Slide 19: Page 19 Update Call Q2/H1 2023/24 | September 27, 2023 ©HORNBACH Group 2023

    Page 19 Update Call Q2/H1 2023/24 | September 27, 2023 ©HORNBACH Group 2023

Hornbach Hldg — Q2 2024 Earnings Presentation on 6ix