Good morning, and welcome to our Q1 2022-23 update call of HORNBACH Holding. My name is Antje Kelbert, head of communications and investor relations. After our pre-results disclosure on Monday the thirteenth of June, we have today at 7 A.M. CET published the full set of figures for the first quarter 2022-23, comprising the period from first of March until end of May 2022. Good morning also to our CFO, Karin Dohm, who will be our presenter today and will also take your questions. Together with us on the call are my investor relations colleagues, Anne Spies and Fabienne Villwock. Before we now take a closer look on the development of the past quarter, please be aware of this disclaimer, which is valid for the entire presentation as well as for the Q&A session. Now I have the honor to hand over to our CFO, Karin Dohm. Thanks, Antje. Also from my side, a very good morning here for our update call. I'm very happy to welcome you all. A couple of figures summarizing our development over the last quarter. Sales and adjusted EBIT, as you know, have already been published via the announcement on June thirteenth, so that part is unchanged as of today. We saw robust sales development in part driven by inflation, but we also continue to see higher levels of demand for home improvement products than in pre-COVID times. Online sales are at 15.3% of total sales in the first quarter, and as expected, this is lower in a year-on-year comparison as the reduction is mostly related to lower click-and-collect compared to last year when stores were still closed and it was the only way to shop. We see here, as such, high levels on an overall comparison to pre-COVID level and change in mixture in relation to the opening of the stores. Earnings are down from last year, but once again, well ahead in comparison to pre-COVID levels. When we look into our expansion achievements in Q1, we have continued our physical store expansion in Europe as we announced together with our plan. In March, we opened two new stores in Slovakia and the Netherlands. With that including, we have now 169 HORNBACH stores across a number of nine countries. We will open two more stores as planned as of today in this fiscal year, one in autumn in Romania in Constanța, and another one in Germany, most likely towards the end of our fiscal year in February. HORNBACH Baustoff Union will take over two builders' merchant outlets in the southwest of Germany by the end of this week. As said, customer demand remained steady in the first quarter so far. You see here an 8% growth, which is a great achievement, of course, on top of the already very strong growth rates that you saw at HORNBACH over the last years. The sales of the subgroup, HORNBACH Baumarkt, including online retail, grew by 8.2%, and we had some catch-up effects outside of Germany following sales restrictions at the beginning of 2021, 2022, so the last year quarter, which you will see in more detail later here. HORNBACH Baustoff Union, the subsidiary, has grown by 6%, also a further achievement after very strong growth last year by 20.5%. When we look into the region split, sales here is equally split between Germany and the other European countries in which we're active. Overall, we have a strong conformance in the net sales development. As earlier, we would like to take a little bit of a deep dive to double-click on the question of outside of Germany development. The like-for-like sales, as shown here on this slide, give you a good indication where we especially had strong upticks. You see that in the Netherlands and Czech Republic, also in Romania and Slovakia. There were some underlying effects in comparison to Q1 2021, 2022 with some catch-up effects there due to closures in the comparative months of the previous year. In some regions, our spring season was impacted by cold weather. For example, specifically in Austria and Switzerland, where the season was from a weather perspective, not as good as we had hoped for. E-commerce, as said, has developed strongly once again, way above pre-COVID levels. Nevertheless, giving you a good indication about consumption behaviors in times of closures and of non-closures. As expected, click-and-collect was used to a lesser extent in Q1 this year since there were no restriction for our stationary stores. On the other hand, direct delivery is still very much in high demand as customers have experienced the good service and availability there in our channels and like to take that into their considerations and behavior on an ongoing basis. All in, e-commerce share of HORNBACH Baumarkt sales, as said earlier, was at 15.3% this quarter. As we think we have here, once again, a reconfirmation of our ICR strategy as we are absolutely convinced that it's best to make sure that customers can choose their channel of preference and act accordingly, to make sure that they can move also smoothly between those channels. When we look outside of Germany, specifically, you see here that we have been able to gain further market share in a number of countries. As you know, from some of our interactions we had in previous occasions, we are really convinced that that is one of the good bases to make sure that further growth is not only driven by expansion of floors and stores, and therefore of, so to say, square meters or webshop activities, but also culminates ultimately in the growth of market share. In Germany, we saw a little bit of an downside development due to the normalization. Nevertheless, once again, here, we're well above the pre-COVID times with now 14.9%. The effect that you see here is that due to the reopening, some customer flows were going into more local offline business instead of online business, and that's then driving that market share in Germany. Coming now to the cost structure and gross margin, as well as some cost item developments when we move further into the P&L. Just what you see here is cost ratio with general and administration expenses remained fairly stable. There was an increased selling and store expenses, mainly due to higher cost for personnel and energy, as well as a deliberate increase in marketing spending relating to our spring campaign, where we increased spend to make sure, of course, that HORNBACH has the right visibility, but also very consciously, as we had decreased that in the COVID years, to make sure we're back to normal levels. On a full year, that is expected to normalize then again. The gross margin was down by 1.3%. Driving factors here are, number one, of course, the rising purchase prices, which we partly did not pass on either, because we were not willing to, as we are convinced that our all-time low price strategy is ultimately the good basis for customer satisfaction and customer loyalty. As well as some transportation costs, which kicks in here, and that all gave us some pressure on the gross margin in the challenging market environment. When we look at the EBIT, our adjusted EBIT came in well above pre-COVID levels, despite, of course, being in a lower level compared to previous years. Nevertheless, with EUR 148 still way above what we saw pre-crisis. Margin is now at 8.2% for that quarter. Once again, also exceeding pre-COVID times, clearly. Let me give you a couple of thoughts on our cash and the funds from operations. Cash inflow from operating activities in general, with an inflow from funds from operations at EUR 164.4 million, so well above the pre-COVID levels. The change in working capital resulted in a cash inflow of roughly EUR 11.2 million. We have currently still, as you also see on our balance sheet, slightly higher inventory than we would usually do have at this time of the year. In those ongoing challenging logistical times, we think that's the right way to approach things to make sure that we have availability of goods and as little stock out as possible. Of course, we are monitoring that very closely to make sure that we are not creating any inefficiencies in the working capital environment. Nevertheless, we feel comfortable with the current development there and the status. CapEx was at EUR 52.3 million in Q1. Approximately 72% of that was spent on land and real estate, as mentioned, mainly for new stores. Allow me to remind you, a lot of our other spending, so into IT and components of, for example, our webshop and other capabilities on the digital side is mainly going through P&L directly, so you do not see that here on the CapEx side to that degree. When we look onto the financing activity side, the cash outflow totaled EUR 13.1 million in the first quarter. That was partially for the additional shares in HORNBACH Baumarkt. We also saw there some cash inflow from the bridge loan. The debt position has been now, related to that, additional share buyback, has now been reduced to EUR 70 million in June, so after the Q1 balance sheet date. We transformed that into a long-term debt by issuing promissory note of EUR 100 million, which are running for five, respectively, seven years. Free cash flow ultimately at EUR 126.4 million inflow. As mentioned, balance sheet structure, once again, rock solid, very strong, and the structure itself absolutely unchanged to what you saw before. I mentioned the slightly higher inventories already. We had an increase in total by 4.7%, and stand now at EUR 4.5 billion with an equity ratio of 41.7%. Very comfortable on that side, and inventories, assets slightly higher, but not any portion of concerns on our side. Outlook for this year and for the next three quarters. Obviously, as you also saw in our press statement this morning, we have a couple of months ahead of us where, like every other company, we have reduced visibility of some of those effects kicking in. We have, of course, still in all of our countries where we're active, high inflation rates and some where we're moving well towards 20% when you look into specifically Eastern Europe. We have, of course, the ongoing publications of consumer confidence index and sentiment-observing institutions such as the GfK and others who give us an indication that there is of course some gloomy mood among customer sentiment. We have, of course, summer now with a couple of holidays which is totally normal in this season, coming in. I think you need to take into account that as said, that all gives a little bit of a blurred picture and reduces visibility, of course. Nevertheless, we gave our guidance a reconfirmation on the sales side. We gave you an update that we expect EBIT to come in lower than the previous year in an area of a double-digit percentage range reduction. Of course, we reconfirm also that we keep our investments as planned. We are opening the new stores. We're also investing in further openings for the next years. Our lead time for new stores is, as said earlier, in some instance, more or less between 12 and 18 months, sometimes even a bit longer. Whatever we want to open next and the following fiscal year is currently starting to be prepared. That is all going unchanged. We also keep up investments in whether that's incremental or directly going through P&L, in our electronic side, so to say, into web shops, and other capabilities to ensure that we are up to date and well abreast of competition. That is unchanged by the reduced outlook. Maybe we stop there. As said, I'm very happy to take your questions and look forward to those. Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their telephone. If you wish to remove yourself from the question queue, you may press star followed by two. If you're using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. Our first question is from the line of Thomas Maul from DZ Bank. Please go ahead. Yes, thank you. Thanks for taking my question. Good morning. Maybe you can, yeah, elaborate a bit more on current trading in Germany and also abroad. Yeah, which factors or developments give you confidence to reach your sales guidance? How robust is demand at the moment? Thank you. Yeah, thanks for that question. Two thoughts which drive our considerations here. On the one side, as you saw, we had good sales in Q1. We also were negatively influenced in Q4 last year. We also see there a comparative uptick basis for this upcoming Q4. That means December, January, February. Nevertheless, we of course see a couple of, so to say, challenges, specifically in our Q2 and Q3. We're talking of course about our year in our Q2 and Q3. Those are the two, let's say, big development streams that we see, the one obviously in favor of, the other more against us. Okay, thank you. The next question is from the line of Thilo Kleibauer from Warburg Research. Please go ahead. Yes. Hi, good morning. I have two questions. The one is on the sales development. Maybe can you give us a little bit more insight into the 8% sales growth of Q1? So what was the number of customers or orders? So overall an indication on customer frequency, and how has the average ticket size developed? My second question is on the OpEx development. We have seen a significant increase in selling and store expenses of 10%. Should we expect this to continue for the remainder of the year? What should we expect in terms of wage inflation in the coming quarters? Thank you. Yeah. Thanks, Thilo. I think going backwards if you allow, wages and potential wage increases, obviously the majority of wage development in Germany where the majority also of our employees by a sheer number is based, is driven by the negotiations with works council or trade unions. The majority of what we have in this year has been negotiated last year already. What would come then now would more affect the next year than the current year necessarily. Therefore that I don't see as a massive impact for this year, honestly. In some other countries we had increases actually last year, which you partially also see now in the figures, because let me take Czech Republic once again as an example where we had already last year inflation. We had some substantial wage increases there, which were totally in line with macroeconomic developments. Nothing outstanding. I would call it more a normalization actually. I think therefore that is not a major concern from my point because ultimately that as a tendency comes in always a little bit later than the price changes you see on the purchase and on the sales side. I think that is not something that I would expect to turn the picture substantially. You also ask about so to say the OpEx, the operating expenses. Of course, we had specifically in Q1 the combination of both the classical logistical costs, which were increased as they were for everybody because due to fuel and other price increases. We also had of course increases in our own energy bill although in Q1 spring season is not necessarily the season where we need to heat our stores. Of course, as said, as far as logistics is concerned, you have that effect. To that point, I think we will honestly all be in the same boat. That depends heavily on the first question of energy prices in continental Europe throughout autumn and winter. We are of course preparing for any scarcity. We have not only reinforced our already existing plans to make sure we reduce our energy consumption also independently of the Russia-Ukraine war to make sure we address some of our ESG ambitions. Specifically now of course in this situation to make sure we can go through the next winter with as little energy consumption as possible. Nevertheless, we are, as said, in the same boat as everybody else ultimately. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by one on your telephone. Our next question is from the line of Ludovic Allègre from Kepler Cheuvreux. Please go ahead. Yes, thank you. Good morning all. I have two question. The first one is it possible to have a breakdown on your sales development between the pros and the DIY? Have you seen a difference in trends between these two types of customers recently? My second question is, are you seeing any signs that a rising interest rate is starting to have a negative impact on your business? Yeah. Thanks for those questions. On the sales side, pros versus so to say full-time retailers, that's roughly one-fifth versus four-fifths. I would claim around 20% are pros, and the rest is really so buying for themselves. Do it for me versus DIY in the Mm-hmm. In the pure classical sense. What we see as changes potentially in behavior, we still have increases in the shopping cart. People buy still and increasingly partially in a project focus. They buy then more things that apparently match together. The tile and the glue for the tiles or things like that. We see less just this spontaneous small things where people just do a little shopping here and there. It's more that things become more focused and then it's usually a larger bundle of goods than before. That, of course, also has influence on the size of the average checkout bill or receipt that we see happening. There are no further questions at this time. Sorry. I think I forgot a part on the rising interest. Yes, yes. ...rate. Antje just corrected me. Yeah. Not yet necessarily because obviously the Baumarkt business is really very much in this home improvement. That's not so much related to the building. Building industry, of course, is affected and starts to become affected. Our main business on the Baumarkt side is really the home improvement. Existing buildings where either individuals or an owner of potentially several flats or whatever is looking into some amelioration. What we see, for example, you see, of course, side effects of people facing their own increased energy bills. Insulation is currently grabbed out of our shelves with an immense intensity, so no surprise there. You see the correlations between what is happening outside and what we observe in the shopping behavior of our customers. HORNBACH Baustoff Union, our subsidiary, which is more focused on or has a stronger relation, let's claim it that way, to the building industry. They see some effects in some instances of the increased interest rates or the less favorable refinancing for some large building associations or others. There is a certain connection. On the Baumarkt side itself, not really, no. Okay. Thank you very much. We have another question from Johan Van Den Hooven from Value8. Please go ahead. Yeah. Good morning. It's Johan van den Hooven from Value8. Two questions, please. Looking at competition and pricing, do you see competitors move in their pricing behavior which might affect your pricing policy? The second question is the gross margin. We have seen it trending down a bit and now of course we are on 34% due to the pricing impact. What do you see for longer term for the gross margin as being a sustainable level? Thank you. Yeah. Thanks for the question. Regarding competition, I mean, it depends a little bit on the countries. It's slightly different, but in its difference, I would claim it relatively unchanged. Fierce competition in Germany as always, less fierce in other countries where we're active. Nevertheless, we're still on that path of the journey where due to the logistical challenges, due to the effects of the disturbed chains following the Russian-Ukrainian conflict, you still have more scarcity and challenges in obtaining goods than in so to say than the other side of the medal. Therefore, you currently do not have any race to the bottom where competition is driving each other into a price decreasing spiral. I think if things would change on that side, then you also would have a relaxation effect on the supply price development. I think honestly it might come in with difference in the timeline, but when prices change, they usually have a tendency to, on average, change on both sides, so to say, of the building. Okay. Yeah. What I'm trying to say there also is, yes, of course we would like to see the gross margin going up again. There might be, so to say, some unfavorable development over the next course of the months. I see that really as a cycle, and therefore, I think it is something which is not unchanged when you link that with competition. It's just now we're on a certain path, and then afterwards comes, so to say, the next wave. Okay. Perhaps an additional question on the gross margin, which has gone down a bit due to the higher share of ICR. How do you see the gross margin developing from the shops and ICR? Can ICR sort of meet the shop margin in the future? Yeah. In general, the margin of our online sales is a little bit lower than the margin in our stores. Two reasons for that. Number one, product mix. We sell less own or white label products in the online world than in the stores. Second, logistical costs, which you can't always 100% pass on by sheer nature of the business. That means whenever we currently have a reduction on that side, the average margin is then increasing. On the other side, when the online part grows, you can scale, of course, the online business way more efficiently than you can scale a store business. Therefore, that's one of the main reasons why we are relatively agnostic also and say, "Look, as long as we grow, as long as we have good sales, we're both sides are warmly welcome. Okay. Thank you. We have a follow-up question from Thomas Maul from DZ Bank. Please go ahead. Yes, thank you. You just gave us an update on the basket size. Did I get it right that the basket size is increasing? Yes, it is. Mm-hmm. Okay. Just a short follow-up. Basket size is increasing and what is actually going on with regard to footfall? What about customer frequency in your stores? Differently. Difficult to really give a straightforward answer. In some instances we have, of course, specifically in Q1, in some instances you have, of course, strongly increased footfall because strongest season, springtime, in those areas where we had good weather, and no closures in comparison to the previous year, there was of course a strong increase. In some areas specifically, currently not Q1, but what we observe now, we have decreases because parts of Germany, for example, were on holiday two weeks in June. That brings down footfall. Difficult really to give you a clear what's the new normal answer. Okay, fine. Thank you. There are no further questions at this time, and I hand back to Antje Kelbert. Well, thank you very much. Thank you also for all your interest in HORNBACH and your time this morning that you participated in our call. Whenever you have remaining questions as usual, please do not hesitate to come to us to contact the investor relations department, and we can take that up. You see here also our financial and upcoming events. We hope to see you at the next conferences which are more and more now also physical, and we are happy to go once again on conferences and participate in roadshows and so on. You will always be able to find the latest version of our financials and event calendar on our investor relations website. Once again, thank you very much for taking your time this morning, and I wish you a successful and pleasant day. Goodbye.