H+h International A/s · OMXCOP:HH
H+h International A/s — H1 2022 Earnings Presentation
28 slides from H+h International A/s's earnings presentation, Aug 19, 2022
Slide 1: H1 2022 Interim Financial Report | Webcast presentation
H1 2022 Interim Financial Report | Webcast presentation 1
Slide 2: Introduction
Introduction Contents Highlights Market update Financial performance Share buy-back programme 2022 financial outlook Closing remarks Questions and answers Supplementary information H+H is a Poriner ip Val) Sulcine across Europe H+H is a wall-building materials provider. The core activity is the prod
Slide 3: Q2 2022: strong activity and sales price increases drove solid earnings
Q2 2022: strong activity and sales price increases drove solid earnings in high-inflation environment Selected financial figures for Q2 2022 Figures in DKKm unless otherwise stated. Q2 2021 figures in brackets Organic growth Gross margin EBIT margin 13% 32% 18% (39%) (30%) (15%) Return on Invested C
Slide 4: Central Western Europe: high activity but rising inflation and uncertainties around energy supply
Central Western Europe: high activity but rising inflation and uncertainties around energy supply hampering visibility Market conditions and trends Germany: + Demand remains high, fuelled by a continued shortage of housing space—especially in the larger cities—from a growing number of smaller househ
Slide 5: The United Kingdom: favourable short-term market conditions but additional cost pressure expected
The United Kingdom: favourable short-term market conditions but additional cost pressure expected Market conditions and trends _ + The construction industry is still expected to continue growing, albeit at slower rates than previously expected. + The downward revision comes as a result of growing in
Slide 6: Poland: growing inflation adversely impacts construction starts
Poland: growing inflation adversely impacts construction starts but the country faces a growing need for additional housing space Market conditions and trends Demand remains high and has supported the continued implementation of significant sales price increases to counter the growing inflation on r
Slide 7: Highest-ever quarterly revenue driven by sales price increases and strong customer demand
Highest-ever quarterly revenue driven by the continued implementation of sales price increases and strong customer demand Consolidated revenue by quarter Quarterly revenue by region DKKm. Bubbles show revenue growth (organic growth) DKKm. Bubbles show revenue growth (organic growth) 9% (-4%) 20% (+1
Slide 8: H1 2022 revenue marks strong start to the year with solid organic growth
H1 2022 revenue marks strong start to the year with solid organic growth across all regions Consolidated H1 revenue H1 revenue by region DKKm. Bubbles show revenue growth (organic growth) DKKm. Bubbles show revenue growth (organic growth) mq Ml Hi 2021 ma 20% 47%) > MM Hi 2022 20% (47%) 1,874 836 +1
Slide 9: Strong earnings margins in Q2 2022 fuelled by sales price increases
Strong earnings margins in Q2 2022 fuelled by sales price increases to counter the inflationary pressure Gross profit and gross margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent, respectively DKKm and percent, respectively DKKm and percent, respectively 32% 30% ° 23% 21% ° ° 15%
Slide 10: Solid H1 2022 gross margin and leverage of SG&A drives strong EBITDA and EBIT margins
Solid H1 2022 gross margin and leverage of SG&A drives strong EBITDA and EBIT margins Gross profit and gross margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent, respectively DKKm and percent, respectively DKKm and percent, respectively 30% 30% 21% 19% ° ° 15% 13% ° ° H12021 H12022
Slide 11: Quarterly earnings drove strong free cash-flow generation...
Quarterly earnings drove strong free cash-flow generation... Development of free cash flow DKKm 207, oe a 165 EBITDA Change in NWC_ Financialitems,net Taxes paid Other) Cash flow from Capital Free cash flow operations expenditures (1) ‘Other’ comprises change in p H+H
Slide 12: ...Which drove a decline in net interest-bearing debt and a lower financial gearing
..Which in turn drove a decline in net interest-bearing debt and a lower financial gearing Net interest-bearing debt (“NIBD”) DKKm 4520 350 343 es o 1 NIBD NIBD Cashflow Cashflow IFRS16 Purchase Other. NIBD 31 31March from from impact of treasury incl.FX 30 June December 2022 _ operations investment
Slide 13: Status on DKK million share buy-back programme
Status on DKK 150 million share buy- back programme + As of 30 June 2022, a total of 403,100 shares, corresponding to 2.3% of the total share capital in H+H, had been bought back under the programme for a total purchase price of DKK 66 million. + Further investments in profitable growth remains the
Slide 14: Financial outlook for the full year 2022 maintained
Financial outlook for the full year 2022 maintained Organic growth EBIT before special items 15% to 20% 440 to 520 Specific assumptions: + Exchange rates, primarily the British pound ("GBP"), the euro ("EUR") and the Polish zloty ("PLN"), are expected to remain at mid-August 2022 levels. * Costs of
Slide 15: Strong performance in the six-month period but macroeconomic landscape drives uncertainty
Strong performance in the six-month period but macroeconomic landscape drives uncertainty Q2 2022 was an exceptionally strong quarter for H+H fuelled by continued high activity and customer demand The strong performance in the first half of 2022 across the business demonstrates H+H's continued abili
Slide 16: Questions and answers
ai H+H Questions and answers
Slide 17: Supplementary information
Slide 18: H+H at a glance
H+H at a glance he im Founded in 1909 H+H was establishedin 1909 when Henrik Johan Henriksen and Waldemar Kahler established the joint stone and gravel-pit enterprise, 'Singelsforretningen Oma. ntly O20 {iP Employees 1,663 We have more than 1,600 employees working across eight different countries in
Slide 19: Summary of strategic targets
Summary of strategic targets Long-term targets Mid-term targets Short-term targets EBIT margin before special items Increased from 11% 14% in 2021 H+H commits to reducing absolute Scope 1 and 2 greenhouse-gas emissions by 46% by 2030 compared with 2019 Organic growth 15% to 20% 13% in 2021 EBIT befo
Slide 20: Performance highlights
Performance highlights Revenue and organic growth Gross profit and gross margin before special items EBIT and EBIT margin before special items. ross profit (MMM Revenue bike 94 REI Gross profit” bike % mm cairo bike % = Organic growth = Gross margint® 3500 24 1,000 40 — EBIT margin? 500 6 3,00 | 800
Slide 21: Five-year financial summary
Five-year financial summary Income statement (DKK million) 2021 2020 2019 2018. 2017 Financial ratios 2021 2020 2019 2018. 2017 Revenue 2,654 2840 2523 1,622 Organic growth (6%) 6% 18% 3% Gross profit before special items 836 877 690 452 Gross margin before special terns 31% 31% 27% 27% EBITDA befor
Slide 22: Business model
Business model Resources People We value our workforce, recognise the advantages of diversity and believe in the equality of people Raw materials Our products are made of sand, water and lime, with cement and aluminium added for aircrete Factory network We have created strong network of factories an
Slide 23: Equity story
Equity story Unique market conditions for growth Structural under-supply of housing Government commitment and stimuli programmes for housebuilding Demographic growth and changing housing needs Fragmented markets with room for consolidation through acquisitions + High entry barriers for new competito
Slide 24: Condensed consolidated income statement
Condensed consolidated income statement Income statement (DKK million) Revenue Cost of goods sold Gross profit before special items Sales costs Administrative costs Other operatingincome and costs, net EBITDA before special items Depreciation, amortisation and impairment losses EBIT before special i
Slide 25: Condensed consolidated statement of comprehensive income
Condensed consolidated statement of comprehensive income Statement of comprehensive income (DKK million) Profit for the period Items that may be reclassified subsequently to profit or loss: Foreign exchange adjustments, foreign entities Items that will not be reclassified subsequently to profit: Act
Slide 26: Condensed consolidated balance sheet
Condensed consolidated balance sheet Assets (DKK million) 31 Dec. 2021 _30 Jun. 2021 Equity and liabilities (DKK million) 31 Dec. 2021 _30 Jun. 2021 Non-current assets Equity Goodwill 364 au Share capital 180 180 Other intangible assets 296 248 Retained earnings 1,662 1,540 Property, plant and equip
Slide 27: Condensed consolidated cash flow statement
Condensed consolidated cash flow statement Cash flow statement (DKK million) Q22021 H1 2021 Operating profit (loss) Financial income, received Financial items, paid Depreciation and amortisation Gain and losses on sale of assets and other non-cash effects Change in working capital Change in provisio
Slide 28: For further information, please contact
For further information, please contact Andreas Holkjaer Head of Investor Relations and Treasury +45 24 48.03.67 aho@HplusH.com H+H International A/S Lautrupsgade 7, 5th Floor 2100 Copenhagen © Denmark +45 35 27 02 00 info@hplush.com www.hplush.com