DGAP-News: Hornbach Holding AG: Hornbach increases its earnings as well


DGAP-News: Hornbach Holding AG / Key word(s): Final Results/Dividend
Hornbach Holding AG: Hornbach increases its earnings as well

28.05.2015 / 12:00

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Hornbach increases its earnings as well 

2014/2015 Annual Reports published:

- Hornbach Group's sales up 6.0 % to Euro 3.57 billion 

- EBIT up 3.0 % to Euro 165.1 million / Consolidated net income 
  with disproportionate growth to Euro 106.7 million 

- Change of legal form to KGaA proposed to Annual General Meeting 

- Dividend policy adjustment in line with higher level of earnings advised
for 2015/2016

Frankfurt/Main, May 28, 2015. Consistent with expectations, the Hornbach
Group achieved year-on-year earnings growth in the 2014/2015 financial year
(March 1, 2014 to February 28, 2015). Consolidated operating earnings
(EBIT) rose by 3.0 % to Euro 165.1 million (2013/2014: Euro 160.4 million).
Consolidated earnings before taxes (EBT) and consolidated net income both
showed disproportionate growth compared with sales (plus 6.0 %), rising by
9.3 % to Euro 139.7 million and 23.8 % to Euro 106.7 million respectively.
Earnings per Holding preference share improved from Euro 4.56 to Euro 5.66.
A resolution to change the legal form of Hornbach Holding AG into a German
partnership limited by shares (KGaA) with the accession of HORNBACH
Management AG as general partner has been proposed for approval by this
year's Annual General Meeting of Hornbach Holding AG. As now communicated
by HORNBACH Management AG, following implementation of the change in form
it, as general partner, intends to adjust the dividend policy in line with
the higher level of earnings achieved.

"In the past 2014/2015 financial year, we further expanded our market
position as one of Europe's leading DIY groups, pressed ahead with our
innovations aimed at generating future growth, and simultaneously increased
our earnings", commented Albrecht Hornbach, Chairman of the Board of
Management of Hornbach Holding AG, when presenting the company's results in
Frankfurt.

All three subgroups post operating earnings growth

The Hornbach Group's increased earnings strength was chiefly driven by the
pleasing level of like-for-like sales growth achieved by DIY stores with
garden centers in conjunction with an improvement in the gross margin. This
more than offset the rise in selling and store, pre-opening, and
administration expenses due in particular to the acceleration in the
company's expansion and additional expenses incurred for forward-looking
strategic projects.

Hornbach-Baumarkt-AG, the most important operating subgroup that currently
operates 147 DIY stores with garden centers in nine European countries,
increased its sales by 6.5 % to Euro 3.36 billion and its like-for-like
sales, i.e. excluding stores newly opened or closed, by 4.4 % in the
2014/2015 financial year. EBIT at this subgroup also grew by 4.4 %, in this
case to Euro 109.8 million. Earnings per Baumarkt share increased from Euro
1.77 to Euro 2.19.

At Euro 51.5 million, EBIT at the Hornbach Immobilien AG subgroup was 0.8 %
up on the previous year's figure. EBIT at the third subgroup, Hornbach
Baustoff Union GmbH (HBU), showed a clearly disproportionate improvement of
19.6 % to Euro 6.5 million. As a regional builders' merchant chain, HBU
currently operates 26 outlets in Rheinland-Pfalz, Saarland, Baden, and
Southern Hessen, and two outlets in neighboring Lorraine (France).

The Hornbach Group can also point to a further improvement in its equity
resources. "The equity ratios of 53.5 % on the level of the
Hornbach-Baumarkt-AG subgroup and 51.8 % at the Hornbach Holding AG Group
underline our solid financial foundation", remarked Albrecht Hornbach.

Outlook for 2015/2016: Increased investments and expansion focus abroad 

Budgeted gross investments at the Hornbach Holding AG Group are expected to
total between Euro 180 million and Euro 200 million in the 2015/2016
financial year, as against around Euro 120 million in the past financial
year. The focus of investment and expansion will return to other European
countries, having moved to Germany in the past financial year due to the
takeover of former Praktiker/Max Bahr locations. Up to six DIY megastores
with garden centers (including two replacement locations) are planned to be
opened in 2015/2016. Of these, five new store openings involve locations in
the Netherlands (2), Austria (2), and Romania (1), while one new store will
be opened in Germany. The Hornbach Group expects to generate consolidated
sales growth in a medium single-digit percentage range in the current
2015/2016 financial year and to achieve EBIT at around the same level as in
the previous 2014/2015 financial year (Euro 165.1 million).

2015 Annual General Meetings: unchanged dividend for 2014/2015 -   
dividend policy announced for 2015/2016 financial year onwards

Dividends at the same level as in the previous year have been proposed for
the past 2014/2015 financial year for approval by the Annual General
Meetings of Hornbach-Baumarkt-AG and Hornbach Holding AG. These involve
dividends of Euro 0.60 per ordinary share at Hornbach-Baumarkt-AG (ISIN
DE0006084403) and of Euro 0.77 per ordinary share (ISIN 0006083405) and of
Euro 0.80 per preference share (ISIN DE0006083439) at Hornbach Holding AG.

On Hornbach Holding AG level, the Annual General Meeting (expected on July
9, 2015) and separate 2015 meeting of preference shareholders (expected on
July 10, 2015) will decide on the proposed change of legal form to a German
partnership limited by shares (KGaA).

The change of the legal form of Hornbach Holding Aktiengesellschaft will be
effected in accordance with the provisions of the German Transformation Act
(Umwandlungsgesetz - UmwG). In its new legal form, the company will operate
under the name HORNBACH Holding AG & Co. KGaA. As the case may be,
shareholders in Hornbach Holding Aktiengesellschaft will become limited
shareholders in HORNBACH Holding AG & Co. KGaA. However, preference
shareholders will not be granted preference shares but, like ordinary
shareholders, will solely be granted non-par value ordinary bearer shares
with voting rights in the KGaA. The exchange ratio will be 1:1 in each
case. To compensate this loss of preference status, preference shareholders
will receive an additional cash payment of Euro 0.38 per preference share.

The general partner of HORNBACH Holding AG & Co. KGaA will be HORNBACH
Management AG, whose registered seat is in Annweiler am Trifels and which
is wholly owned by Hornbach Familien-Treuhandgesellschaft mbH. HORNBACH
Management AG has meanwhile communicated its intentions regarding the
future development of the dividend policy of Hornbach Holding AG following
the change of legal form. Accordingly, "contingent on the change of legal
form entering into effect and subject to the performance of the business
and principle of dividend continuity, the general partner intends, in
principle, to plan for a dividend in the amount of 30% of consolidated net
income after non-controlling interests from financial year 2015/2016
onwards".

The notification of the convening of the Annual General Meeting, which also
includes the full wording of the proposed resolution concerning the change
of legal form, was published today - Thursday, May 28, 2015 - and made
available on the internet at www.hornbach-group.de. The detailed
Transformation Report of the Board of Management of Hornbach Holding AG can
also be found at this site.

 Key earnings figures of the Hornbach Group (Hornbach Holding AG Group) 

<pre>


Key figures of the Hornbach Holding AG      2014/2015   2013/2014         ±
Group

(in Euro million, unless otherwise stated)  financial   financial      in %
                                                 year        year


Net sales                                     3,571.7     3,369.3       6.0


of which Hornbach-Baumarkt-AG subgroup        3,356.5     3,152.0       6.5


- Germany                                     1,966.2     1,827.3       7.6


- Other European countries                    1,390.4     1,324.7       5.0


Like-for-like sales growth (DIY)                 4.4%        2.7%


of which Hornbach Baustoff Union GmbH
subgroup                                        213.3       215.7      -1.1


Gross margin (as % of net sales)                37.3%       36.6%


EBIT                                            165.1       160.4       3.0


of which Hornbach-Baumarkt-AG subgroup          109.8       105.1       4.4


of which Hornbach Immobilien AG subgroup         51.5        51.1       0.8


of which Hornbach Baustoff Union GmbH
subgroup                                          6.5         5.5      19.6


Consolidated earnings before taxes              139.7       127.8       9.3


Consolidated net income                         106.7        86.2      23.8


Earnings per holding preference share (in
Euro) - WKN 608343                               5.66        4.56      24.1


</pre>

<pre>


Misc. key figures of the Hornbach         February 28,   Feb. 28,         ±
Holding AG Group                                  2015       2014

                                                                       in %


Shareholders' equity as % of total assets        51.8%      49.3%


Number of DIY stores with garden centers           146        141       3.5


Sales area of DIY stores with garden
centers in 000 m² (BHB)                          1,704      1,647       3.5


Number of employees1)                           16,455     16,021       2.8


</pre>

1) Head count at balance sheet on February 28
Differences due to rounding up or down to nearest Euro million; percentage
changes calculated on basis of Euro 000s.

Note 
The Annual Reports of the Hornbach Holding AG Group and the
Hornbach-Baumarkt-AG subgroup for the 2014/2015 financial year are
available online at: www.hornbach-group.de



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Language:    English                                                     
Company:     Hornbach Holding AG                                         
             Le Quartier Hornbach 19                                     
             67433 Neustadt an der Weinstraße                            
             Germany                                                     
ISIN:        DE0006083439                                                
WKN:         608343                                                      
Indices:     SDAX                                                        
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated   
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,  
             Munich, Stuttgart                                           
 
 
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362375 28.05.2015