Resumen: ¿Por qué debemos conocer la correcta gestión de las aguas freáticas?

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€ 808.2 million in the previous year. Non-current liabilities fell from € 425.3 million to € 407.8 million. This € 17.5 million reduction was chiefly due to two unscheduled repayments made and to further scheduled repayments of financial debt. This item was opposed by actuarial losses resulting from negative developments in interest rates, which led to an increase in provisions for pensions. Fur- thermore, non-current liabilities include deferred tax liabili- ties of € 31.0 million (2013/2014: € 33.4 million).

Current liabilities rose from € 382.9 million to € 400.0 million. Chiefly due to repayments of existing finan- cial liabilities, current financial debt fell € 0.2 million to € 6.9 million (2013/2014: € 7.1 million). Trade payables and other liabilities totaled € 287.9 million at the balance sheet date, as against € 285.2 million in the previous year. Mainly due to higher provisions for bonuses, other provisions and accrued liabilities rose by € 13.6 million from € 69.4 million to € 83.0 million. The net debt of the HORNBACH-Baumarkt- AG Group i.e. financial debt less cash and cash equivalents, rose by € 9.0 million from € 0.6 million in the previous year to € 9.6 million.

Off-balance sheet financing instruments and rental obligations

In addition to the DIY megastores with garden centers owned by the HORNBACH-Baumarkt-AG Group and one DIY store with a garden center used on the basis of a finance lease agreement, there are 43 stores and one logistics center that are let from the associate company HORNBACH Immobilien AG or its subsidiaries, as well as 61 DIY meg- astores with garden centers that are let from third parties. Moreover, the Group also has a small number of additional land leasehold, leasing and rental agreements.

Obligations under rental, hiring, leasehold and leasing con- tracts relate exclusively to rental agreements for which the companies of the HORNBACH-Baumarkt-AG Group are not the economic owners of the assets thereby leased pursuant to IFRS accounting standards (Operating Lease). The rental agreements principally relate to DIY megastores with garden centers in Germany and other countries. The terms of the rental agreements usually amount to between 15 and 20 years, with subsequent rental extension options. The respective agreements include rent adjustment clauses.

As of February 28, 2015, obligations under rental, hiring, leasehold and leasing contracts totaled € 1,160.2 million (2013/2014: € 1,246.6 million).

Key balance sheet figures of the HORNBACH-Baumarkt-AG Group

Key figure Definition 2.28.2015 2.28.2014

Equity ratio Equity / Total assets % 53.3 51.6 Return on equity Annual net income / Average equity % 7.8 6.7 Return on total capital NOPAT1)/ Average total capital2) % 8.6 8.4 Debt / equity ratio (gearing) Net debt / Equity % 1.0 0.1 Additions to non-current assets,

including advance payments for land Additions to non-current assets, includingadvance payments for land € million 99.9 72.0 Net working capital Inventories and receivables less trade payables € million 381.9 344.9 Inventory turnover rate Cost of goods sold / Average inventories 4.1 4.0

1)_{Net operating profit after tax, defined as EBIT minus unchanged standardized tax rate of 30 % at the HORNBACH Group} 2)_{Average total capital, defined as average equity plus average net debt.}

COMBINED MANAGEMENT REPORT Overall Assessment of Group Earnings, Financial and Asset Situation

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Overall, the HORNBACH-Baumarkt-AG Group can look back on a pleasing 2014/2015 financial year. HORNBACH's DIY stores with garden centers posted sustainably positive developments in the year under report and outperformed the sector average in most countries within our European network. Assisted by our unmistakable retail format, our high-performing infra- structure, and not least our continuing great popularity among DIY and home improvement customers, we successful- ly asserted our position despite a number of challenging seasonal and consolidation-related base effects.

Consolidated sales for the period from March 1, 2014 to February 28, 2015 grew by 6.5 % to € 3,357 million. On a like- for-like basis and net of currency items, the Group stepped up yet another gear compared with the previous year. Adjusted sales in the year under report thus achieved growth of 4.4 %, up from plus 2.7 % in the 2013/2014 financial year. This very pleasing rate of growth was driven both by stores in Germany and those in other European countries.

Germany once again generated the greatest growth momen- tum. Domestic sales (including new stores) rose by 7.6%, and by plus 5.5 % on a like-for-like basis. We expanded our do- mestic market share from 10% to 11% in 2014. As the com- parative year benefited to a very significant extent from con- solidation factors in the wake of the Praktiker insolvency and from the mild winter in 2013/2014, the standard to match was very high, particularly in the second half of the year. Sales at the HORNBACH DIY stores with garden centers in the eight countries outside Germany also showed pleasing growth

in the 2014/2015 financial year. International sales, including one new store, grew by 5.0 % in other European countries. Like-for-like sales net of currency items achieved a turna- round. Following reductions in three consecutive years, our international stores achieved substantial adjusted sales growth of 2.8 % in the year under report.

HORNBACH pressed consistently ahead with its sustainable innovation projects in the year under report. A large share of the project-related administration expenses were incurred for consistently expanding our e-commerce activities. What's more, further development projects also helped im- prove the foundations for the Group's long-term growth. We are satisfied with the Group's earnings performance. Consistent with expectations, we increased our earnings compared with the previous year in the 2014/2015 financial year. Driven by pleasing like-for-like sales growth in conjunc- tion with an improved gross margin, we more than offset the rise in selling and store, pre-opening, and administration expenses resulting in particular from the accelerated expan- sion and additional outlays for forward-looking strategic projects.

The equity ratio rose to 53.3 %. The capital structure and liquidity remain at good levels. In view of our broad spectrum of financing sources, we enjoy a high degree of security and flexibility to finance our further growth. All in all, the Group's economic situation is pleasing.