HORNBACH Baumarkt (HBM) Investor presentation summary

Market position and operations

• Operates 174 DIY stores and 3 BODENHAUS stores across 9 European countries, with 10 online shops and a strong presence in Germany, Netherlands, Czechia, and Austria.

• Group sales reached €6.4bn with adjusted EBIT of €265m for FY 2025/26; 95% of sales from DIY retail, 5% from builders merchant outlets.

• Maintains a reliable dividend policy since IPO, with a stable payout and a 27.7% payout ratio for 2025/26.

• Store network is highly homogeneous, with 78% of stores over 10,000 sqm and 62% of retail space owned, supporting operational agility.

• Market share is growing in all key markets, with notable increases in the Netherlands (30.4%), Czechia (40.1%), and Germany (16.1%).

Strategic focus and growth drivers

• Pursues an interconnected retail strategy, offering seamless customer journeys across online and offline channels, with over 4.3 million customer accounts and 350 million web shop visits in 2025/26.

• Focuses on project-based DIY, providing broad assortments, price leadership, and expert advice, targeting both retail and commercial customers.

• Structural growth driven by Europe's ageing building stock, energy efficiency needs, and demographic changes, fueling renovation demand.

• Expanding beyond traditional DIY by targeting trade professionals and offering "do-it-for-me" services, with significant market potential in Germany.

• Announced expansion into Serbia, with plans for 6-8 large-scale locations and online shop launch, targeting high home ownership and rising purchasing power.

Financial performance and outlook

• Q1 2026/27 net sales rose 4.9% to €2,002.4m, with like-for-like sales up 2.8% and gross profit up 4.0% to €699.9m.

• Adjusted EBIT for Q1 2026/27 was €161.0m, nearly matching the prior year, with an EBIT margin of 8.0%.

• E-commerce sales grew 9% year-on-year, raising the online share to 13.6% of net sales.

• Operating cash flow fully covers CAPEX, with free cash flow at €143.0m after higher investments in expansion.

• Maintains a strong balance sheet with a 42.3% equity ratio and reduced net financial debt, leverage ratio at 2.5x.