The conference is now being recorded. Good morning, ladies and gentlemen, and welcome to the conference call regarding the Third Quarter and Nine-Month Results 2021/2022 of HORNBACH Group. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Antje Kelbert. Thank you and good morning. For those of you who have not attended our call on Monday, my name is Antje Kelbert, and since first of December, I am heading the Communications and Investor Relations department. After our preliminary results disclosure on December seventh, we have today published the full set of figures for the first nine months and the third quarter, 2021/2022. Our CFO, Karin Dohm, will be our presenter today and also take your questions. Together with us on the call is my investor relations colleague, Anne Spies. Let us right away dive into the highlights of the past quarter and I hand over to our CFO, Karin Dohm. Thank you very much, Antje, and a very warm welcome from my side as well to this Q3 event. Very much looking forward to run you through some of those key figures of last quarter as well as of the nine months that we just finished. Obviously, very happy to take your questions afterwards. Let me start. We had a very good third quarter. We saw strong sales still coming in way above the pre-COVID levels. There is a slight element of inflation, but as said, we see higher levels of demand for home improvement on an ongoing basis. Earnings are down from last year, but well ahead of pre-COVID levels as well. We have a sustainably higher earnings position that reflected also or that was reflected in the credit ratings, which was upgraded to BB+ at the October 13. We raised our full-year guidance on December 7 to reflect those better than expected developments in Q3 against the strong previous year. Let me caution, of course, that we are still not yet in a full COVID-clean situation. I come later to those details where we currently have some closures or limitations to our store activity. First, a little bit about our organic expansion. We continued that in the third quarter, as we did in the previous quarters of this fiscal year. We opened two new stores, one in the Netherlands and one in Switzerland. We also extended one of our existing Dutch stores with a new format called HORNBACH Vloeren, which is focusing specifically on floors, tiles, and anything that you and clients might think about when home improving their specific floor situation. With that all in account, we have now 167 stores as of November 30th. We also could build, as we did in the previous quarters, on a very effective management of the COVID pandemic, and we also managed to keep, despite the challenging situations that we have around logistics, logistical chains and of course, the general availability of goods, we managed to be well-stocked and to ramp up our capacities also looking into the specific requirements of the Christmas season and of course, in preparation also of the next spring. Looking a bit into the specific figures, you see here robust sales growth in all three quarters and once again, as I said earlier, significantly higher level than pre-COVID. To make sure we have a little bit of that comparison, we included here not only last year, but also the year before. We have, as we said, a little bit of inflation that drives partially our sales growth. But in general, the cocooning, the homing trends and the general request to home improve, whether it's in a DIY fashion or whether customers reach out to merchants and chandlers, is still in high demand and still higher than pre-COVID on a robust level. Like-for-like sales, same here. We had a growth on top of a very strong prior year, specifically when you compare those figures across the various countries. We have, of course, as I mentioned earlier, still a couple of limitations to our activity. I would like to point out specifically the Netherlands. They had, especially at the beginning of the year, so when we look into nine-month figures, they had limitations with regard to store openings and, the possibility for customers to enter the stores. We also, as you know, have these new restrictions in the Netherlands, which will now affect our fourth quarter. So that is something to take into account. We had in the third quarter, specifically a couple of closures in Austria and Slovakia for three and two weeks respectively, but that had no major effect on the figures you see here for Q3. Coming a bit into the details of the e-commerce activities. Once again here, good dynamics. We're very happy with our development. On a rolling 12-month basis, we see e-commerce share of total sales reaching slightly above 20%. The growth slowed down in the course of the year, which we expected as higher growth in Q1 was driven in part by lockdowns in a number of geographies. However, it remains robust at 10% in Q3. Click & Collect more than doubled in the course of the year, while direct delivery grew by 16%. Specifically in Germany, and I'll also talk about other regions, in a minute. Specifically in Germany, we managed to outperform the sector and in continued manner. You see here the comparisons between the competitors and our performance when it comes to sales like-for-like growth in the DIY sector in Germany. As said, we have been outperforming that sector for years, but that positive gap has significantly widened in the last two years, partly driven, as we are convinced, by our successful ICR strategy, combined with a very good management on the merchandising side and our logistical network. As mentioned, a little bit of view also beyond, when we look into market shares. As said, really happy with the performance in Germany. You see here, a really impressive gain in market share now being beyond 15%. Also in other countries, looking, for example, into the Netherlands, into Switzerland and others, we really are happy with the fact that we managed to gain further market shares, not only this year, you know that we had that positive development also in previous years, but it's a good continuation, so we're really happy with that. Bottom line, when we look into the adjusted EBIT, we're well ahead of pre-COVID levels, again, with an increase in adjusted EBIT of 63.7%, versus the nine months of 2019, 2020, and currently an EBIT margin of 8.4%. So far in this quarter and in this fiscal year as well, we didn't have any non-operating items. When we look below that surface into the various segments, we see largely the same picture for HORNBACH Baumarkt, adjusted EBIT and profitability well ahead pre-COVID levels, although slightly down on last year's record level. However, a significant increase in adjusted EBIT for HORNBACH Baustoff Union versus last year due to strong sales and positive gross margin effects. Looking at the cost side, we maintained improved cost structures versus the pre-COVID levels. You see here the long-term comparison and a normalization in some cost items, as we talked about already in previous quarters, was deliberately achieved because we wanted to make sure we, for example, boost up our marketing activities, which were slowed down in the previous fiscal year, and also, spend on projects and other components. Thinking here also on, of course, ongoing IT spend, which we consider crucial to make sure that we keep our performance and with that, our market shares and activity levels. Gross margin, of course, we have the same situation as all our competitors and many other companies currently. We see higher purchasing prices. We could largely cover them by selling prices, but there is of course an element of, as we mentioned earlier, of inflation as well. We see that also coming through. When we look onto the cash side and the funds from operation, we're above previous year and well above, of course, the year before that, the year 2019 and 2020. We have had fluctuations in working capital resulting from a COVID-related exceptionally high order volume in the previous year and accelerated payments to suppliers in the current year to avoid negative interest. CapEx increased due to the accelerated expansion, and you will see that as well, of course, in the next year. As said, during the course of this year, we did not only open new stores this year, we also plan to have a similar amount around five in the next year. You will see similar CapEx movements also in the next fiscal year. Cash flow from financing activities also includes incoming payments of EUR 50 million from taking up financial loans and a similar amount of outgoing for the redemption of loans. The usual movements, nothing specific in comparison to any other year on that side. As said at the beginning, we confirmed our guidance and increased the outlook for the ongoing year. We, of course, have a couple of unknowns in this fourth quarter, which we just started. When you think about corona and the ongoing public discussion, it might be that we see the one or the other limitation in the next two and a half months. But nevertheless, we are confirming those figures. We are, we're comfortable with those ranges. The last, so to say, organic growth piece that we will see this year, talking about this fiscal year, is the opening of the fifth store. As you know, we are replacing in Paderborn one of our existing stores that will happen at the beginning of February as planned currently. To sum it all up, let me just come back to why we think that key investment highlights are unchanged and even reconfirmed by the current development. We are obviously benefiting from those broader consumer trends, which we said earlier, we see not only as a single event but as an ongoing trend regarding cocooning, homing, the working from home, and of course, the effects of demographic changes in our countries and the carbon footprint considerations, which will also trigger a couple of improvements in anybody's homes. We definitely think that our interconnected retail offering is one of our key differentiator, which is supported by our merchandising and logistics teamwork. Ultimately, we have a strong operational track record of generating consistent organic growth in combination with leading productivity, specifically in Germany, when you measure us by sales per square meter. We have put onto this slide, which is the last one, and as well, we'll put that on our Internet, the financial activities between now and our trading statement on March 22nd. I'm very happy, of course, now to take your questions. Thank you. Yes. Ladies and gentlemen, if you would like to ask a question, please join the telephone conference. There, you can press nine, followed by the star key on your telephone keypad. If you wish to cancel your question, please press nine, followed by the star key again. Please press nine star now to ask your question. I'm just gonna repeat it. If you want to ask a question, please press nine and star on your telephone keypad. We do have a question from Thomas Maul. Yes. Thank you. Good morning. Thomas Maul with DZ Bank. I got two, please. First one, with regard to price increases and inflation. Are there actually certain product groups that are particularly affected by higher purchase prices? Or, yeah, just the other way around, which parts of the product range are affected less than average? And, yeah, the second question, how high was the share of private labels recently? And in which countries are these products produced? Thank you. With regard to the pricing structure, we have seen, as you know, throughout the year, a substantial increase in anything that was related to wood. That, to my knowledge, has relaxed a little bit over the course of the last weeks and months, due to the fact that that aspect, the whole chain has adjusted, as you know, sawmill capacities in the U.S. were beefed up, and that all switched back into availabilities of, so to say, sliced wood and all the components that are needed. That relaxed a little bit. In general, beyond that, it's literally across the whole range of products and of anything that we have in stock or offer. In addition, we are in some goods, of course, also affected like the car industry if you think about the chips. Yeah, it's a general range. Solid wood slightly relaxed. Your other questions was around the white label or private labels. It's roughly on average 25%. It differs a little bit from country to country. Yes, that's the general average range. Okay, fine. Thank you. If there are other questions, please press nine and star on your telephone keypad. That doesn't seem to be the case. There is another question. It's from Ludovic Allegre. I hope I pronounced it correctly. Yeah. Hi. Can you hear me? Yes. Yes? Okay, perfect. I just have two questions. The first one is, do you think that the current inflation situation and notably the rise in energy prices can distort the current demand for DIY projects? It is my first question. The second one is more on the following years. Do you expect a normalization in terms of adjusted EBIT margin in the following years after the two last exceptional years? Is there a potential for an adjusted EBIT margin to expand beyond 6%, as internationals becomes a larger part of your business in the following years? Yeah, thanks for your questions. Let me start with the first one. Energy prices, general pricing levels, inflation, of course, I think as everybody has their impressions from the public discussions also with regard to not only the current energy discussion, also the ones on ECB and where and how they might start tapering or things like that. I think, of course, it might be that clients or customers postpone certain projects because they might have a cautious look into their piggy banks and then, as said, postpone the one or the other thing. But in general, as said, a lot of those things that our customers are doing in that project area is not necessarily affected from our perception currently. It might lead to, as said, some movement, so things then potentially are not done this winter than they are done next spring, but they are not evaporating. We think more if those things are happening, if there is a certain distortion, it's more over the timeline and not necessarily with regard to whether something is done at all or whether the money flows into some other investment channels from a customer's perspective. Of course, let me remind you that we are still, as said, in a not COVID-free situation. This whole aspect of what's the new normal, and that is probably kind of leeway also to your other question. The aspect of what's the new normal and how does that then crystallize in our figures, including EBIT margin, is not really fathomable currently for us. You're correct. The range of the portion of sales and EBIT that we generate outside of Germany in comparison to Germany is growing. The shop openings that we have in mind currently for the next year are also happening outside of Germany in a vast degree. The percentage is growing slowly but continuously growing as far as activities outside of Germany are concerned. Okay. Thank you. If you would like to ask another question, excuse me, please press nine followed by the star key on your telephone keypad. There is another question from Mark Josephson. Yeah. Thank you. Thanks for the presentation again today. I wanted to push you still a bit further on the guidance. I mean, I do, of course, accept the background to the wide range that we have. If I just look at the sales guidance there where we have at the bottom end of the range, I think it would imply a negative 6% or so development in the final quarter, whereas the top end would involve 22% or so growth. I see that as a very wide range. If we look at November, so the last month of the quarter we're talking about and the first three weeks or so of December, has the sales development across the group been closer to the -6% or closer to the +22%? Just to give me a feel for how it's been so far. Yeah. Thanks for the question, and I appreciate, as you voiced it yourself, trying to push us a little bit further. Two thoughts there. Number one, as you know and as everybody knows, we've heard several times over the last two years, political statements of the one or the other kind, which included sentences like, "This will not happen," or, "This will happen." Then we all learned a little bit later that something else was happening. Please allow us to stay very cautious with regard to what degree of closure we might face between now and end of February, while of course, being relatively confident, let's put it that way, that the majority of limitations stay as they are currently, which means people need to show that they are vaccinated, or have overcome a COVID infection when they want to enter the store. Obviously, we're excellently prepared to ensure any Click & Collect and direct delivery activity wherever and in what shape and form our customers ask for. And as said earlier, this is exactly also what is happening now in the Netherlands, where we are more or less in a déjà vu situation as we were at the beginning of this fiscal year. Yes, we are very confident with those ranges. Yes, you are right. It would imply if we go to the lower end, it would imply that we have a fourth quarter which is relatively close to last year's fourth quarter, which we do currently not expect. As said, with all those disclaimers I've voiced, I really am extremely hesitant to narrow a range which we just gave out more or less two weeks ago. Allow me to stay as vague as I just was. Okay. I can accept that. I had to redial in because my questions were not being registered. As I came back in, you were commenting on additional costs or rather the impact on margins. I didn't hear the question, but I just wondered if you were able to quantify for us the sort of additional store costs that, if I just take Germany, for example, and look only at the DIY side rather than the merchant business, we typically have to show our advice as we go in the store, and that often means additional employees. I wonder if you can quantify in any way the additional costs that the group has had to absorb with the new regulations across the different countries? You mean such as additional security and things like that? Exactly that. Additional hygiene measures generally. That's right. Yeah. I don't have the exact figures now in my hands. In the previous fiscal year, all in, if I remember that correctly, that was a smaller double-digit million amount. Okay. I would expect something similar, but very happy. For a full year, that is, very happy to give you a more exact figure. No, that's fine for me. Thank you, indeed. We do have another question, and it comes from Johan Van Den Hooven. Yeah. Good morning. Johan Van Den Hooven, Value8. Two questions for me, please. You already said that you expect sort of same CapEx level next year as this year because of the well expected five store openings. Can you take us a bit further into the future what you expect sort of the CapEx level over the next few years? Will it be the same? Will it be a step-up? Related to that question for the store openings, can you tell us a bit more about the focus of the geographical areas, the countries where you well want to open more stores or even into a new country? There's also one more question for the next couple of years. Thank you. Yeah. Thank you very much. With regard to CapEx, yeah, definitely next fiscal year, I would expect similar regions and high probability also then for the following year as of today. Obviously we are currently going through the preparation of our planning figures for the next year and the following five years. Once we're through with that, very happy to look a bit further and give also more details on the outer years with regard to potential CapEx. Geographically, we're talking here once again next year specifically all about Netherlands. We're talking Slovakia, Romania. We are also talking about a little bit Germany. As that mixture with more new stores outside of Germany than within Germany, that is partially very straightforward and transparent, a question of good opportunities. Obviously Germany is, as you know, a dense market there. It's more about gaining market share via performance and not so much via opening new stores. With regard to your question to new countries or other countries, no, we have nothing concrete specific there in our draws. We are obviously and continuously checking the market and looking into opportunities wherever they might come our way. Currently, no, there is nothing specific in our draws, as said. All right. Thank you very much. Sorry, I just wanted to say there are no further questions, but there came another one, and it's from Mark Josephson again. Yeah. Thank you for taking an add-on question. We heard in the conference you talked about HORNBACH Vloeren in Holland, which sounds a little bit like a Bodenhaus to me, albeit it sounds as if that might be attached to an existing unit. Can you give us any feedback on the early start of HORNBACH Bodenhaus here in Germany? Of course. Just to recollect, two stores, one in Berlin, one in Cologne, in the city themselves, so opened at the beginning of this fiscal year. Obviously, unfortunately, in the heat of closure status, so to say. They have been nicely developing over the summer when there was a possibility to bring forward the whole activity scheme to both professional customers as well as DIY customers. We think we need to make sure we allow both sufficient time to really demonstrate what potential is there and how well the potential can be captured. So far as that first year is not yet over, we're still in observation mode. It's the development is from a dynamic positive, but of course, it's very early stages. Okay, thank you. Did I understand correctly that the experiment in the Netherlands with HORNBACH Vloeren, that's attached to an existing unit? Exactly. It is literally physically, so to say, it's one area, and you have two buildings which are very close to one another. It's the one is an already existing classical HORNBACH store, if you want to say so. We have opened this specific concept which focuses similar to the Bodenhaus only on anything and everything that is related to floors. Okay. Good luck with that. Thank you again. Thanks. We don't have any further questions. Okay. We can conclude today's call. Thank you very much for your interest, your questions, and your time this morning. Whenever you have remaining and further questions, please do not hesitate to contact the Investor Relations department. And now it's on us to wish you a happy holiday season and a healthy new year. Goodbye, and thank you. The conference is no longer being recorded.