The HORNBACH Group is characterized by its ability to respond to the challenges of trading in DIY, home improvement and garden products, and to set new standards in the process.

Since 1877, five generations of the HORNBACH family have been active in almost all areas of the construction sector – in the building trade, as manufacturers of prefabricated components and since 1900 as builders’ merchants.

As one of the pioneers in Germany and Europe, HORNBACH opened its first DIY store in 1968 and combined it with a garden center – at its time unique in Europe. This combination has since developed to become a European standard in the DIY sector today.

In the second half of the 80s, and especially since 1990, HORNBACH has added a new dimension to the market with its concept of large DIY and home improvement megastores with garden centers. Today, an impressively presented range of around 50,000 top quality DIY and gardening articles is available to DIY customers in spacious stores and at permanently low prices. Well-trained, service-oriented employees make project customers the focus of their activities. At the balance sheet reporting date on February 28, 2007, HORNBACH-Baumarkt-AG operated 120 DIY megastores with garden centers across Europe with total sales areas of around 1.3 million square metres.

The retail activities of the Group are supplemented by HORNBACH Baustoff Union GmbH, which is active in the construction materials and builders’ merchants business and mainly has commercial customers. The development and utilization of first-class retail real estate constitutes a further business activity of HORNBACH HOLDING AG. These activities are undertaken in part by HORNBACH Immobilien AG, which owns much of the extensive real estate portfolio of the HORNBACH Group.

The consistent implementation of the company’s concept, coupled with the high expectations it places in the quality of its locations, its stores, its product range and employees, have facilitated the dynamic growth witnessed by the company in recent years and form the basis for further expansion. With an average DIY sales area of around 11,000 m² per store, HORNBACH has underlined its unique position in the DIY megastore with garden center segment and also has the highest level of sales area productivity of any of the leading DIY companies in Germany. HORNBACH HOLDING AG generated consolidated (net) sales of € 2,544 million in the 2006/2007 financial year.

Following the company’s successful entry into the Austrian market in August 1996, it has consistently pressed ahead with its expansion into neighboring European countries. Stores have subsequently been opened in the Netherlands, Luxembourg and the Czech Republic. The company’s international growth was maintained with its expansion to Switzerland, Sweden, and Slovakia. The entry into the Rumanian market is due to follow in the summer of 2007. As of February 28, 2007, the company was operating a total of 31 DIY megastores with garden centers outside Germany.

HORNBACH HOLDING AG is not itself an operating company, but has a number of major subsidiaries. By far the largest and most important subsidiary is HORNBACH-Baumarkt-AG, which operates DIY megastores in Germany and abroad. The shares of this company are admitted to the subsection of official trading of the German Stock Exchange which involves additional admissions obligations (Prime Standard). Of approximately 15.5 million ordinary shares in the company, 78.4 % held by HORNBACH HOLDING AG, with 16.3 % being owned by independent shareholders. The British retail group Kingfisher plc owned around 5.3 % of the shares at the reporting date.

The share capital of HORNBACH HOLDING AG is divided equally between ordinary and non-voting preference shares. Some 83% of the four million preference shares (ISIN DE0006083439) are owned by independent shareholders and around 17 % are held by Kingfisher plc. The preference shares are listed on the German Stock Exchange and have been admitted to the subsection of the official market involving additional admissions obligations (the “Prime Standard”). 75 % of the four million unlisted ordinary shares are owned by the Hornbach family. The Group’s strategic partner, Kingfisher plc, holds 25 % plus one share of the voting capital.