HORNBACH Holding AG & Co KgaA Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christoph Eckert - Eckert Mittelstand Invest - Analyst : Christoph Eckert, Eckert Mittelstand Invest. I have two questions. First on the segment reporting. I'm just wondering on the segment, on the Immobilien AG as I haven't seen any one-off effects, whereas in Baumarkt AG annual report, you had some impairments. I'm just wondering if you -- why there are no impairments on the Immobilien AG in the segment reporting. And the second question is on inflation on your personal expenses. What can we expect by how much your personal expenses might increase this year and maybe in the upcoming years? Thank you. Karin Dohm - Hornbach Holding AG & Co. KGaA - Chief Financial Officer, Member of the Management Board - Hornbach Management AG Yeah. Thanks for the two questions. First of all, the one on the real estate and the impairment, that's driven by IFRS peculiarities, probably you could say. Given that you have -- according to the bookkeeping on the lease standards, you see the changes in those that use the real estate due to the question of what is the difference between the utilization and the revenues driven by the stores versus the weighted average cost of capital. So that sits in the operating part in the Baumarkt AG, whilst the real estate company is there just so to say compared to their rental income and that valuation driven by those parts. So that is just a location topic, if you want to say so. And your other question was to the personal expenses. We don't consider -- or currently, we don't expect high changes, but we would, on average, across the whole group think of something with a small single-digit number of rises this year, this fiscal year.