Hornbach-Baumarkt-AG Group

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Notes on the Consolidated Balance Sheet 131
In addition, the Group still has the promissory note bond concluded by HORNBACH Baumarkt CS spol s.r.o. in
CZK with an original volume of € 20 million in the 2010/2011 financial year. This bond, also with a floating
interest rate, was concluded for a term running until August 31, 2015. The interest payable was hedged with
a congruent interest swap. The half-yearly interest payable via the interest swaps was secured at a level of
2.08% p.a. plus a bank margin for the entire term. Due to the pleasing liquidity situation, the promissory
note bond concluded by HORNBACH (Schweiz) AG in CHF with an original volume of € 20 million was prematurely
redeemed as of December 31, 2012. The relevant interest swap was redeemed at fair value.
In the third quarter of the 2011/2012 financial year, HORNBACH-Baumarkt-AG agreed a syndicated credit
line of € 250 million. This facility, which matures on December 14, 2016, served to prematurely replace the
previous syndicated credit line of € 200 million at HORNBACH-Baumarkt-AG otherwise due to mature in June
2013. The new credit line may also be drawn down in foreign currencies, particularly CHF, SEK and CZK, up to
an amount of € 25 million. Furthermore, supplementary bilateral loan agreements of up to € 50 million may
also be concluded within the credit framework (also in foreign currencies). Upon utilization, the interest is
based on the 3-month or 6-month EURIBOR, or the equivalent IBOR, plus an interest margin. The applicable
interest margin is determined by reference to the company rating granted to HORNBACH-Baumarkt-AG by an
internationally recognized rating agency. Margin premiums apply should the level of utilization exceed specified
threshold values and when the facility is drawn down in foreign currencies. A provision fee dependent on
the respective interest margin is charged for the unutilized portion of the credit line.
As of February 28, 2013, the HORNBACH-Baumarkt-AG Group had total credit lines of € 302.2 million
(2011/2012: € 315.3 million). Unutilized credit lines amounted to € 300.2 million (2011/2012:
€ 313.89 million). Furthermore, HORNBACH-Baumarkt-AG has a credit line for import credits amounting to
USD 40.0 million (2011/2012: USD 40.0 million). Of this, an amount of USD 8.9 million had been drawn down
as of the balance sheet date (2011/2012: USD 23.4 million).
Land charges amounting to € 85.5 million have been provided as security for liabilities to banks (2011/2012:
€ 146.5 million).
No assets have been provided as security for the credit lines, the promissory note bonds referred to above, or
the bond. The relevant contractual arrangements nevertheless require compliance with customary bank
covenants, non-compliance with which could lead to a premature repayment obligation. These regularly
involve pari passu clauses and negative pledge declarations, as well as cross default arrangements for
major financing facilities. In the case of the syndicated credit line at HORNBACH-Baumarkt-AG and the
promissory note bond agreements at the HORNBACH-Baumarkt-AG Group, they also require compliance with
specific financial ratios. These key financial ratios are based on consolidated figures at the HORNBACH-
Baumarkt-AG Group and require interest cover of at least 2.25 times and an equity ratio of at least 25%.
Maximum limits for financing facilities secured by land charges and financing facilities taken up by subsidiaries
were also agreed. The interest cover, net debt/EBITDA ratio, equity ratio, agreed financing limits, and
company liquidity (cash and cash equivalents, plus unutilized committed credit lines) are regularly monitored
within the internal risk management framework. Should the values fall short of certain target levels,
then countermeasures are initiated at an early stage. All covenants were complied with at all times in the
year under report.