2016

Consolidated sales up 5.9% to around Euro 3.2 billion in first nine months / DIY stores with like-for-like growth of 4.0% - Builders' merchant sales up 4.6% / Nine-month operating earnings (EBIT) rise 5.7% to Euro 182.3 million / Disproportionate earnings growth in third quarter

Neustadt a. d. Weinstrasse, December 22, 2016.

Driven by a pleasing third-quarter business performance, earnings at the Hornbach Group (Hornbach Holding AG & Co. KGaA Group) for the first nine months of the financial year (March 1 to November 30, 2016) exceeded the previous year's figure. Based on sales growth of 5.9% to Euro 3,155.4 million in the first nine months (2015/2016: Euro 2,980.2 million), operating earnings (EBIT) rose by 5.7% to Euro 182.3 million (2015/2016: Euro 172.5 million). Earnings per Holding share improved by 2.0% to Euro 6.06 (2015/2016: Euro 5.94). The full-year sales and earnings forecasts for 2016/2017 (balance sheet date: February 28, 2017) have been confirmed.

'We boosted our earnings strength once again in the third quarter of 2016/2017 compared with the previous year. Our sales growth was very pleasing in this year's fall season, and that both in Germany and other European countries. An increasing share of this success is also due to our online activities', commented Albrecht Hornbach, Chairman of the Board of Management of Hornbach Management AG.

According to Albrecht Hornbach, the third-quarter earnings growth was also due to a high level of cost awareness at the Group. Overall, the Hornbach Group's store, pre-opening, and administration expenses grew less rapidly than sales in both the third quarter and the nine-month period. 'And we achieved this while continuing to channel substantial funds into the increasing digitization of our business model', stressed Hornbach. He is convinced that 'our interconnected retail strategy, i.e. the smart dovetailing of stationary and online businesses, is the key to sustainable success.'

DIY stores with garden centers increase nine-month sales by 6.0%

Sales at Hornbach Baumarkt AG, the largest operating subgroup (DIY retail), grew by 4.4% to Euro 900.9 million in the third quarter (September 1 to November 30, 2016). The 154 Hornbach DIY stores with garden centers in nine European countries - and thus unchanged on the previous quarter - increased their net sales for the first nine months of 2016/2017 by 6.0% to almost Euro 3.0 billion. On a like-for-like basis and net of currency items, DIY sales rose by 3.0% in the third quarter and by 4.0% in the first nine months of the 2016/2017 financial year.

The Hornbach stores outside Germany continue to report the highest sales growth. Like-for-like sales in the international business added 3.9% to the already high previous year's figure in the third quarter and rose by 6.1% in the nine-month period. In Germany, the like-for-like sales growth of 2.2% in the third quarter and 2.4% in the nine-month period was in line with the first six months. Cumulative nine-month EBIT at this subgroup grew by 4.5% to Euro 133.0 million (2015/2016: Euro 127.3 million).

The Hornbach Baustoff Union GmbH (HBU) subgroup, which is even more closely aligned to the needs of professional construction customers than the Hornbach Baumarkt AG subgroup, increased its net sales for the third quarter of 2016/2017 by 8.4% to Euro 67.4 million (2015/2016: Euro 62.2 million). Nine-month sales rose by 4.6% to Euro 190.7 million (2015/2016: Euro 182.4 million), while EBIT showed slightly disproportionate growth of 5.0% to Euro 8.7 million (2015/2016: Euro 8.3 million).

When presenting the nine-month results, the Board of Management also confirmed the full-year sales and earnings forecasts for 2016/2017. Accordingly, both the Hornbach Group and the Hornbach Baumarkt AG subgroup are still expected to achieve sales growth in a medium single-digit percentage range. Excluding non-operating income and expenses, EBIT is expected to match the previous year's level (Euro 99.3 million) at the Hornbach Baumarkt AG subgroup and to match or slightly exceed the figure for the 2015/2016 financial year (Euro 151.2 million) at the overall Hornbach Holding Group.

Key Figures of the Hornbach Group for the 3rd Quarter and First Nine Months at a Glance

Key figures
Hornbach Holding AG & Co. KGaA Group
(in Euro million, unless otherwise stated) 		3rd Quarter
2016/2017		 3rd Quarter
2015/2016		 ±
in % 		9 Months
2016/2017		 9 Months
2015/2016		 ±
in %
Net sales 968.7 925.6 4.7 3,155.4 2,980.2 5.9
of which Hornbach Baumarkt AG subgroup 900.9 863.0 4.4 2,963.4 2,796.4 6.0
- Germany 490.0 480.4 2.0 1,632.8 1,596.5 2.3
- Other European countries 410.9 382.5 7.4 1,330.6 1,199.9 10.9
Like-for-like sales growth (DIY) 3.0% 2.9% 4.0% 1.8%
of which Hornbach Baustoff Union GmbH subgroup 67.4 62.2 8.4 190.7 182.4 4.6
Gross margin (as % of net sales) 35.7% 35.8% 36.3% 36.9%
EBIT 29.8 21.3 29.9 182.3 172.5 5.7
Consolidated net income 15.8 11.6 36.5 117.7 116.7 0.8
Earnings per share (Euro) 0.91 0.71 28.2 6.06 5.94 2.0
Misc. key figures
Hornbach Holding AG & Co. KGaA Group
(in Euro million, unless otherwise stated) 		November 30, 2016 February 29, 2016 ±
in %
Shareholders' equity as % of total assets 52.6% 49.8%
Number of DIY stores with garden centers 154 153 0.7
Sales area of DIY stores with garden centers in 000 m² 1,791 1,771 1.1
Number of employees 17,740 17,373 2.1

Rounding up or down may lead to discrepancies between percentages and totals. Calculation of percentage figures based on Euro 000s.

Including minoritiy interests pursuant to IFRS

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