Hornbach-Baumarkt-AG Group

GROUP MANAGEMENT REPORT Asset Situation 55
Non-current and current liabilities
Liabilities, including provisions, amounted to € 775.7 million
at the balance sheet date, as against € 836.1 million in the
previous year. Non-current liabilities fell from € 471.6 million
to € 438.6 million. This reduction in non-current liabilities by
€ 33.0 million was chiefly due to the premature repayment of
a promissory note bond of € 21.9 million in Switzerland, as
well as to various one-off repayments of loans amounting to
around € 9.2 million. The non-current liabilities reported
include deferred tax liabilities of € 33.5 million (2011/2012:
€ 35.7 million).
Current liabilities fell from € 364.5 million to € 337.1 million.
Largely due to repayments of existing financial liabilities,
current financial debt reduced by € 16.0 million to
€ 8.6 million (2011/2012: € 24.6 million). Trade payables and
other liabilities totaled € 248.8 million at the balance sheet
date, compared with € 244.4 million in the previous year.
Other provisions and accrued liabilities fell by € 9.3 million
from € 67.6 million to € 58.3 million. The net debt of the
HORNBACH-Baumarkt-AG Group, i.e. financial debt less cash
and cash equivalents, grew to € 64.9 million at the balance
sheet date, up from € 27.7 million in the previous year.
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 those used
on the basis of finance lease agreements, there are 42
stores and one logistics center that are let from the associate
company HORNBACH Immobilien AG or its subsidiaries,
as well as 57 DIY megastores 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.
The obligations under rental, hiring, leasehold and leasing
contracts relate exclusively to rental agreements for which the
companies of the HORNBACH-Baumarkt-AG Group do not
constitute 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.
Key balance sheet figures of the HORNBACH-Baumarkt-AG Group
Key figure Definition 2.28.2013 2.29.2012
Equity ratio Equity / Total assets % 51.4 48.6
Return on equity Annual net income / Average equity % 6.5 10.2
Return on total capital NOPAT 1) / Average total capital 2) % 8.1 11.5
Debt / equity ratio (gearing) Net debt / Equity % 7.9 3.5
Additions to non-current assets,
including advance payments for land
€
million 116.6 103.7
Net working capital
Inventories and receivables less trade payables
€
million 349.5 357.8
Inventory turnover rate Cost of goods sold / Average inventories 4.0 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