HORNBACH Baumarkt (HBM) Investor presentation summary

Market position and operations

• Group sales reached €6.4bn with adjusted EBIT of €265m and a reliable dividend history.

• Operates 175 DIY stores and 3 BODENHAUS stores across 9 countries, with 95% of sales from DIY retail and 5% from builders merchant outlets.

• Holds leading market shares in several countries: 29.8% in the Netherlands, 40.1% in Czechia, and 15.9% in Germany as of July 2026.

• Store network is a mix of owned and leased properties, with 62% of retail space owned and over 2 million sqm total retail space.

• Expansion includes new store openings in Austria, Slovakia, and the Netherlands, and entry into Serbia planned for 2027.

Financial performance and guidance

• Net sales for 6M 2026/27 grew 6.0% to €3,816.2m, with like-for-like sales up 4.0%.

• Adjusted EBIT for 6M 2026/27 increased 4.9% to €285.6m; free cash flow rose 50.4% to €194.9m.

• Gross profit margin slightly decreased to 34.6%, while cost ratios remained stable despite higher personnel and IT investments.

• Guidance for FY 2026/27 expects net sales and adjusted EBIT at or slightly above prior-year levels.

• Strong balance sheet with equity ratio at 45.8% and net financial debt/EBITDA reduced to 2.3x.

Strategic initiatives and growth drivers

• Interconnected retail strategy integrates online and offline channels, with over 4.3 million customer accounts and 350 million web shop visits.

• E-commerce share of sales increased to 13.5%, with strong growth in Click & Collect and direct delivery.

• Expansion into new markets (Serbia) and consolidation in Germany through acquisition of former competitor locations.

• Focus on energy-efficient renovation, demographic trends, and DIFM (do-it-for-me) services as structural growth drivers.

• Consistent dividend policy with a payout ratio of 27.7% and stable dividends since IPO.