Hornbach-Baumarkt-AG Group

52 GROUP MANAGEMENT REPORT Financial Situation
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. Further key figures are calculated on a quarterly
basis. 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. Further information about financial debt can be found
in Note 22 of the notes on the consolidated balance sheet.
Cash and cash equivalents amounted to € 317.2 million at
the balance sheet date (2011/2012: € 404.3 million). As in the
past, liquidity is managed in the form of fixed deposits on the
money market with maximum investment horizons of three
months. In the course of the financial crisis, the Group set
maximum deposit totals per bank to enhance security by
spreading liquidity holdings more widely.
Key financial figures of the HORNBACH-Baumarkt-AG Group
Key figure Definition 2.28.2013 2.29.2012
Net financial debt
Current financial debt + non-current financial
debt – cash and cash equivalents € million 64.9 27.7
Interest cover Adjusted(*) EBITDA / Gross interest expenses 6.0 7.6
Net debt / EBITDA Net financial debt / Adjusted(*) EBITDA 0.4 0.1
* EBITDA excluding changes in non-current provisions and gains/losses on the disposal of non-current assets as reported in the cash flow statement
Investments of € 116.6 million
The HORNBACH-Baumarkt-AG Group invested a total of
€ 116.6 million in the 2012/2013 financial year (2011/2012:
€ 103.8 million), mainly in land, buildings and plant and
office equipment at existing DIY stores with garden centers,
and at stores under construction. The funds of € 116.6 million
(2011/2012: € 103.8 million) required for the cash-effective
investments were mainly acquired from the cash flow of
€ 94.9 million from operating activities (2011/2012:
€ 103.8 million). The remaining amount was covered by reducing
liquid funds. Around 53% of total investments were
channeled into new real estate, including properties under
construction. Around 47% of total investments mainly involved
replacing and extending plant and office equipment.
The most significant investment projects related to the DIY
megastores with garden centers opened in the 2012/2013
financial year in Oberhausen (Germany), Riddes (Switzerland),
and Timisoara (Romania), construction work on DIY megastores
with garden centers due to be opened in subsequent
financial years, the conversion and extension of existing
stores, the acquisition of land for the Group’s further expansion,
investments in plant and office equipment, and in intangible
assets, especially software.