HORNBACH (HBH) 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 other markets.

• 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 proposed stable dividend for 2025/26 and a payout ratio of 27.7%.

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

• Market share increased in all key markets in early 2026, including Germany (16.1%), Netherlands (30.4%), and Czechia (40.1%).

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.

• Expansion into Serbia announced, with potential for 6-8 locations and first openings expected by end of 2027.

• Growth opportunities identified beyond traditional DIY, including trade professionals, DIFM services, and specialized formats.

• Structural growth supported by Europe's ageing building stock, energy efficiency needs, and demographic trends.

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%.

• Adjusted EBIT for Q1 2026/27 was €161.0m, nearly flat year-on-year, with a 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 in Q1 2026/27 despite higher investments.

• Guidance for FY 2026/27 targets net sales and adjusted EBIT at or slightly above prior-year levels, with new store openings planned in Slovakia, Austria, and the Netherlands.