Material audiovisual

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February

HORNBACH-Baumarkt-AG (Xetra) SDAX MDAX DAX

Share price performance: March 1, 2011 to February 29, 2012

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THE HORNBACH-BAUMARKT SHARE

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€ 28.00 on July 29, 2011. After that, our dividend-paying stock was unable to escape the drop in prices on international stock markets in August 2011. Having said this, the Baumarkt share quickly managed to consolidate at a range of between

€ 24 and € 25.

In mid-November 2011, a renewed period of weakness on the overall market caused the share price to drop temporarily to its annual low of € 21.50 (November 25, 2011). However, it recov-ered very quickly with the tailwind provided by the nine-month figures published on December 22, 2011. By the end of the financial year (February 29, 2012), the share closed at € 25.05, equivalent to an annual performance of minus 1%. The share thus proved more resistant than the overall market to the extremely unsettled backdrop of news, particularly during the intensification in the European debt crisis from summer 2011.

Quality is trump

Widespread uncertainty among stock market players, ever more extreme daily ups and downs, and the question as to the

“right” sustainable investment strategy and safe havens have united many investors in the insight that what now counts most is to select the right stocks. Quality is the only factor that matters. Viewed in this light, HORNBACH and its sustainable business model, with which the company further boosted its market position in Germany and eight other countries in the past financial year as one of Europe’s most successful opera-tors of DIY stores and garden centers, fits in well with this quality-driven approach. Not only that, HORNBACH can point to a stable financing structure, a further increase in its equity ratio and high cash holdings, factors that serve to reassure today’s ever more risk-averse investors.

Further proof of investors’ trust was provided once again by the performance of the corporate bond issued by HORN-BACH-Baumarkt-AG (ISIN XS0205954778; WKN: A0C4RP).

The price of HORNBACH’s bond, which runs until November 2014 and has an interest coupon of 6.125%, was consis-tently well above par once again in the 2011/2012 financial year and, at 106.6%, even managed to post a price gain of almost 2% (Stuttgart Stock Exchange). The bond price

benefited from the upgrades issued by rating agencies, who thus in turn reacted to the ongoing improvement in the Group’s earnings, net asset and financial position. At the end of July 2011, Standard & Poor’s (S&P) increased its corporate rating for HORNBACH-Baumarkt-AG by one grade from “BB” to “BB+”, the highest rating below investment grade level, with a stable outlook. In October 2011, Moody’s left its rating unchanged (“Ba2”), but lifted its outlook from “stable” to “positive”.

Issue of bonus shares as of July 29, 2011

To enhance the attractiveness of HORNBACH-Baumarkt’s share, in the past financial year we acted on a suggestion received from shareholders and issued one new bonus share for each existing share to all shareholders on the basis of the corresponding resolution adopted by the Annual General Meeting on July 7, 2011. The bonus shares have been in-cluded in the stock market listing since July 29, 2011. Due to the issue of bonus shares at a ratio of 1:1, the number of HORNBACH shares has doubled, while the share price conse-quently halved, leaving the company’s market capitalization unchanged at the time of conversion. This produced the desired outcome, namely that the Baumarkt shares now appear cheaper in optical terms. Prior to the issue of bonus shares, HORNBACH’s shares were relatively expense for pri-vate investors, especially when compared with the stocks of many other companies in the MDax and SDax indices. At

€ 55.15, the Baumarkt share price reached its highest level on July 7, 2011 since September 2007.

The issue of bonus shares was preceded by an increase in the company’s share capital from company funds by convert-ing part of the revenue reserves reported in the company’s annual balance sheet as of February 28, 2011 into share capital. The share capital of HORNBACH-Baumarkt-AG was doubled to € 95,421,000.00, and is divided into 31,807,000 shares with a prorated amount of € 3.00 per share.

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Key data about the HORNBACH-Baumarkt share (IFRS) 2011/2012 2010/2011

Nominal value of the share € 3.00 3.00

Dividend¹⁾ € 0.50 0.50

Basic earnings per share € 2.43 2.38

Total dividend payment € 000s 15,904 15,904

Shareholders’ equity per share²⁾ € 24.90 22.95

Market capitalization²⁾ € 000s 796,765 802,332

Share price (Xetra)²⁾ € 25.05 25.23

12-month high € 28.00 25.95

12-month low € 21.50 17.65

Shares issued³⁾ Number 31,807,000 31,807,000

Price / earnings ratio²⁾ 10.3 10.6

1) 2011/2012: subject to resolution by the Annual General Meeting

2) At the end of the financial year (the last day in February)

3) Due to the issue of bonus shares (1:1), the number of shares doubled as of July 29, 2011. The previous year’s figures have been retrospectively adjusted.

Transparent financial communications

Our investor relations activities once again provided share-holders, analysts, the financial media and the general public with prompt information on the business performance of HORNBACH-Baumarkt-AG in the past financial year. All quar-terly reports, annual reports, press releases and additional financial information were published on the internet commu-nications platform of the HORNBACH Group (www.hornbach-group.com), where we have pooled all of our information and services, especially for shareholders and press representa-tives. This separate site for corporate communications thus complements the product-related and marketing content available at HORNBACH’s internet site at www.hornbach.com.

The Annual General Meeting, the annual results press confer-ence, analysts’ conferences and meetings with investors in Germany and abroad give us the opportunity to maintain our dialog with the capital markets. Moreover, we draw on personal contacts with the media to present our company’s objectives and strategy in interviews. Here, we outline the special fea-tures of our concept, our market position and the Group’s future growth prospects, as well as our current performance figures.

Dividend continuity

The Board of Management and the Supervisory Board of HORN-BACH-Baumarkt-AG will propose a dividend at the same level as in the previous year for approval by the Annual General Meeting on July 5, 2012. Following the doubling of the number of shares due to the issue of bonus shares, this corresponds to a dividend of € 0.50 per share with dividend entitlement. This way, the company intends to maintain a fair balance between the interests of its shareholders on the one hand, and the com-pany’s growth financing on the other.

The share of HORNBACH-Baumarkt-AG (ISIN DE0006084403) represents a solid long-term investment with high intrinsic value. Of around 31.8 million ordinary shares in HORNBACH-Baumarkt-AG, an unchanged total of 76.4% were held by the parent company, HORNBACH HOLDING AG, at the balance sheet date on February 29, 2012, while 18.4% were in free float. The British retail group Kingfisher plc, with which HORN-BACH entered a strategic alliance at the end of 2001, holds a 5.2% stake. Within the German Stock Exchange index system, HORNBACH-Baumarkt-AG is admitted for trading in the Prime Standard. Among other requirements, membership in this index obliges companies to meet high transparency standards.