Hornbach Holding AG Group: Trading Statement 2011/2012

Trading Statement for 2011/2012: Sales up 6.2% to Euro 3.2 billion

Hornbach Group surfs German housing boom wave

Group reports greatest momentum in Germany - Like-for-like sales up 5.8% at German DIY megastores with garden centers - Regional builders' merchant business up almost 12%

Neustadt/Weinstrasse, March 22, 2012. The Hornbach Group, one of Europe's largest operators of DIY megastores with garden centers, stepped up its rate of growth in the 2011/2012 financial year compared with the previous year. Based on preliminary figures published today, net sales at the Hornbach Holding AG Group for the period from March 1, 2011 to February 29, 2012 grew by 6.2% to Euro 3,204 million (previous year: Euro 3,017 million). With sales growth of 5.8%, the Hornbach-Baumarkt-AG subgroup, which was operating 134 DIY megastores with garden centers in nine countries across Europe at the balance sheet date, passed the three billion euro mark for the first time. Of these sales, 42.4% were attributable to other European countries. The strongest growth momentum in the past financial year was seen in Germany, where the company's DIY megastores with garden centers posted like-for-like sales growth of 5.8% and further expanded their market share. The Hornbach Baustoff Union GmbH subgroup increased its net sales by almost 12% to Euro 201 million.

'It's the right time for large-scale construction and renovation projects. That's especially true for Germany. Record employment figures, high consumer confidence and low interest rates have boosted housing construction. We secured a large slice of the cake in the past financial year, as our concept targets precisely this kind of project customer', commented Albrecht Hornbach, Chairman of the Board of Management of Hornbach Holding AG, with regard to the figures.

As in the previous year already, Hornbach's DIY megastores with garden centers in Germany were among the Group's key growth drivers in the 2011/2012 financial year. Net sales at the 91 stores in Germany rose by 5.4% to Euro 1,729 million (previous year: Euro 1,641 million). On a like-for-like basis, i.e. excluding stores newly opened or closed in the past twelve months, DIY sales in Germany grew by 5.8% (previous year: 3.8%). 'We significantly exceeded the high standard set in the previous year, especially in the second half of the year. During the 2011 calendar year, we thus extended our lead over the DIY sector to six percentage points', added Albrecht Hornbach. As a percentage of gross sales at all German DIY megastores and garden centers (Euro 22.5 billion), Hornbach's market share rose during the year from 8.8% to 9.2%.

With sales growth of 11.8% to Euro 201 million (previous year: Euro 180 million), the Hornbach Baustoff Union GmbH subgroup, which operates 24 builders' merchant outlets in south-western Germany, made an above-average contribution to the Group's growth in the 2011/2012 financial year.

Outside Germany (other European countries), Hornbach increased its DIY sales following the opening of two new stores by 6.5% to Euro 1,272 million (previous year: Euro 1,195 million). The international stores operated by the Hornbach-Baumarkt-AG subgroup thus raised their share of sales from 42.1% to 42.4%. On a like-for-like basis and net of currency items, sales in other European countries could virtually be maintained at the previous year's level - and that despite the ongoing sluggish economic recovery in the East European store network (Romania, Slovakia and Czech Republic). Excluding currency items, international sales showed a slight decline (minus 1.0%). Including currency items, like-for-like sales grew by 1.6%. 'Thanks to very pleasing growth momentum in Germany and Western Europe overall, we more than offset the decline in Eastern Europe,' remarked Albrecht Hornbach. 'This way, we improved like-for-like sales at the Baumarkt subgroup by 2.8%, and by 4.0% including currency items.'

Hornbach has not made any changes to its earnings forecast for the full 2011/2012 financial year. Accordingly, operating earnings (EBIT) both at the Hornbach Holding AG Group and at the Hornbach-Baumarkt-AG subgroup are expected to exceed the figures of Euro 159 million and Euro 119 million respectively reported for the 2010/2011 financial year. Complete information about the Group's earnings performance and its annual financial statements will be published at the Annual Results Press Conference on May 24, 2012.

*adjusted for currency items
Rounding up or down may lead to discrepancies between percentages and totals. Percentage figures calculated on basis of EUR 000s.