HORNBACH (HBH) German Select VII Conference summary

Business Overview and Strategy

• Operates 173–176 stores in nine European countries, focusing on home improvement and DIY projects, with 95% of group sales from DIY stores.

• Maintains a resilient business model, consistent dividend policy, and continuous innovation.

• Emphasizes project-based customer support for both retail and professional clients, with 20% of clients from the professional segment.

• Differentiates through everyday low price policy, avoiding promotional discounting, and providing seamless omnichannel integration.

• Expansion strategy targets markets with high DIY potential, with new store openings planned in Germany, Austria, Romania, and Serbia by end of 2027.

Financial Performance and Efficiency

• Generated consolidated sales of €6.4bn in the last fiscal year, with net sales up 3.8% to €6,433.9m and like-for-like sales growth of 2.4%.

• Adjusted EBIT reached €265m, with two-thirds from international operations.

• Sales per square meter increased to €2,903, up 1.9% from the previous year, reflecting operational efficiency.

• Maintains a strong balance sheet and has never reduced or skipped its dividend since IPO.

• Store network exceeds 2 million sqm retail space, with 62% of space owned, supporting operational agility.

Digital and Customer Experience

• Operates an industry-leading online platform, with 13% of sales from e-commerce and a 7% increase over the previous year.

• Seamless omnichannel experience with Click & Collect, direct delivery, and low return rates (<5%).

• 4.3 million customer accounts and over 350 million website visits, with high customer satisfaction ratings.

• Offers services such as tool rental, financing, repair, and drive-in facilities for convenience.

• Provides tutorials and expert advice to empower customers amid a shortage of tradespeople.