Hornbach Group continues to see steady and strong demand throughout H1 – sales up 5.2% y-o-y

• Continued strong demand for construction and DIY products amid rising product prices: Consolidated sales up 2.2% in Q2 2022/23 and 5.2% in H1 2022/23
• H1 2022/23 like-for-like sales ahead of previous year (+1.9%) and significantly above pre-pandemic levels (3-year like-for-like +28,7%)
• Adjusted EBIT with EUR 277.4 million well above pre-pandemic levels by plus 40%, however down 17.7% against previous year’s record performance in line with expectations
• Full-year outlook for 2022/23 as of June 13, 2022 reconfirmed: slight sales growth and adjusted EBIT level to decline around a low double digit percentage range

Table 1: Key figures HORNBACH Holding AG & Co. KGaA Group for the 2^nd Quarter and 1^st Half Year

^{1) In constant currencies; includes sales from all stores that have been open for at least one year including online sales}

^{2) Adjusted to exclude non-operating income and expenses}

^{3) IFRS; including minorities}

^{Rounding up or down may lead to discrepancies between percentages and totals. Percentage figures calculated on basis of EUR 000s.}

Bornheim (Palatinate), Germany, September 29, 2022.

The Hornbach Group (Hornbach Holding AG & Co. KGaA Group; ISIN: DE0006083405) further increased its sales compared with the previous year's record figure in the second quarter (Q2) of 2022/23 (June 1 to August 30, 2022) on the back of continued steady and strong customer demand. In H1 2022/23 (March 1 to August 30, 2022) consolidated sales grew by 5.2% to EUR 3,463.3 million (2021/22: EUR 3,292.4 million). A 3-year like-for-like figure of 28.7% underscores the significant acceleration in growth during the Covid pandemic. Adjusted EBIT (operating earnings adjusted to exclude non-operating earnings items) for H1 2022/23 at EUR 277.4 million came in below the record figure reported for the previous year (EUR 337.2 million), however well above H1 2019/20 with plus 40%. For the current 2022/23 financial year management continues to expect a slight sales growth and the adjusted EBIT level to decline around a low double digit percentage range – reconfirming the revised guidance as of June 13, 2022.

“The focus of customers on improving their home has continued over the summer months. In particular we are seeing an uptick in projects to improve energy efficiency in some regions. Amid ongoing challenges with regard to inflation and supply chains, we have continued to deliver on our promise to be a reliable partner for our private and professional customers across all refurbishment and renovation projects”, commented Erich Harsch, CEO of Hornbach Baumarkt AG.

DIY stores with like-for-like growth of 1.9%

At Hornbach Baumarkt AG, the largest operating subgroup (DIY retail) which operated a total of 169 DIY megastores with garden centres and online shops in nine European countries as of August 31, 2022, net sales in H1 2022/23 increased by 4.9% to EUR 3,236.8 million (2021/22: EUR 3,085.2 million). On a like-for-like basis and exchange rate adjusted, DIY sales showed a subgroup-wide increase of 1.9% (2021/22: 2.5%).

Net sales at the Hornbach DIY stores in Germany increased by 1.4% to EUR 1,601.7 million in H1 2022/23 (2021/22: EUR 1,579.7 million). Like-for-like sales were up 0.9% (2021/22: 0.7%). Net sales outside of Germany grew by 8.6% to EUR 1,635.1 million (2021/22: EUR 1,505.5 million). The international share of sales at the Hornbach Baumarkt AG subgroup rose from 48.8% to 50.5%. On a like-for-like basis and exchange rate adjusted, sales in Other European Countries grew by 2.9% (2021/22: 6.4%).

Online sales (including Click & Collect) remained on a much higher level than pre-Covid and accounted for 14.8% of Hornbach Baumarkt subgroup’s total sales in H1 2022/23 (2019/20: 9.6%). Compared with previous year’s period where stationary sales were still restricted in a number of regions, as expected, demand for Click & Collect in particular, was significantly lower and has normalized again. Sales from direct deliveries were only slightly behind the previous year. In total, online sales declined y-o-y by 19.1% to EUR 479,8 million in H1 2022/23.

The Hornbach Baustoff Union GmbH (HBU) subgroup increased its sales in H1 2022/23 by 9.7% to EUR 226.6 million (2021/22: EUR 206.5 million) adding additional growth on top of previous year’s record development of plus 13.2%. The subgroup currently operates 39 builders’ merchant outlets including two locations close to the border in France (Alsace/Lorraine) and 37 locations in south-western Germany, thereof two locations in Saarland (Germany) acquired as of July 1, 2022.

Adjusted EBIT significantly above pre-Covid levels, but below previous year's figure

With EUR 277.4 million the adjusted EBIT of Hornbach Group in H1 2022/23 came in 39.8% above pre-Covid levels (2019/20: EUR 198.4 million). Compared to the record number of H1 2021/22, adjusted EBIT declined by 17.7%, mainly due to inflationary pressures and cost pressures weighing on the Group’s gross margin. Earnings were also impacted by increased store operating and personnel costs. With 8.0% the adjusted EBIT margin in H1 2022/23 is still 0.4 percentage points ahead of the pre-pandemic first half-year 2019/20.

Earnings per share at EUR 11.37 were only slightly down from the previous year (2021/22: EUR 11.69) due to the higher stake in Hornbach Baumarkt AG following the delisting offer which was successfully concluded as of February 28, 2022.

Outlook reconfirmed: Slight sales growth and low double-digit percentage decline in adjusted EBIT expected for the 2022/23 financial year

Hornbach Group confirms its full-year 2022/23 outlook as revised on June 13, 2022 still expecting a slight increase in net sales from the 2021/22 financial year of EUR 5,875.0 million and the full-year adjusted EBIT level to decline around a low double digit percentage range, below the record number of EUR 362.6 million in FY 2021/22.

“Whilst the uncertain macroeconomic backdrop is a challenge to every business and concerns around consumer spending in the second half of our financial year 2022/23 are growing across Europe, our business fundamentals remain stable. We are a long established DIY company with a proven ability to navigate and emerge stronger from external challenges”, said Albrecht Hornbach, CEO of Hornbach Management AG.

Sustainability Magazine published

The Hornbach Group has published its annual Sustainability Magazine together with its Half-Year Financial Report. Looking beyond statutory reporting obligations, this publication offers space for those topics that motivate the company, its employees, and its customers, such as the future of working, tackling carbon emissions and promoting diversity.

Table 2: Miscellaneous key figures HORNBACH Holding AG & Co. KGaA Group

^{4) of which 167 Hornbach DIY stores with garden centers and two BODENHAUS outlets}

^{5) Sales area BHB: Closed building (warm or cold): 100%; covered open space (cold): 50%; building material drive-in (cold): 50%; non-covered open space (cold): 25%.}

^{6) Number of employees as of August 31, including passive employees}

Note
The Half-Year Financial Report, the Half-Year Presentation and the Sustainability Magazine of the HORNBACH Holding AG & Co. KGaA Group for H1/Q2 2022/23 is available online at: www.hornbach-holding.com.

About HORNBACH Group

HORNBACH Group is an independent, family-run retail group under the umbrella of HORNBACH Holding AG & Co. KGaA, which is listed on the Frankfurt Stock Exchange and represented in the SDAX. The largest subsidiary, HORNBACH Baumarkt AG, operates 170 DIY megastores with garden centers (incl. specialist stores) and online shops in nine European countries. The Group also includes HORNBACH Baustoff Union, a regional builders' merchant company with 39 locations in southwestern Germany and France, as well as HORNBACH Immobilien AG, which develops retail real estate for the Group. In the financial year 2021/22 (reporting date: February 28, 2022), the HORNBACH Group generated net sales of EUR 5.9 billion, making it one of the five largest DIY and garden retail companies in Europe. The Group has a workforce of more than 25,000 employees.

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