H+h International A/s · OMXCOP:HH
H+h International A/s — Q3 2021 Earnings Presentation
26 slides from H+h International A/s's earnings presentation, Nov 10, 2021
Slide 1: Q1-Q3 2021 Interim Financial Report | Webcast presentation
Q1-Q3 2021 Interim Financial Report | Webcast presentation 1
Slide 2: Introduction: H+H is a partner in wall building across Europe
Introduction H+H is a partner in wall building across Europe H+H is a leading wall-building materials provider. The core activity is the production and sale of autoclaved aerated concrete (“AAC" or “aircrete") and calcium silicate units (“CSU" or “sand lime bricks"). The products are building blocks
Slide 3: Q3 2021: best-ever nine-month results with strong organic growth
Q3 2021: best-ever nine-month results with strong organic growth and solid earnings margins Selected financial figures Figures in DKKm unless otherwise stated Selected financial figures and ratios Q32021 32020 Q32019 Q1-932021 Q1-Q32020 Q1-932019 Sales volume (thousand cubic metres) 1176 1,055 1,232
Slide 4: Central Western Europe: demand outlook remain stable but restrained
Central Western Europe: demand outlook remain stable but restrained by lack of installation capacity and building plots Market conditions and trends Germany: * The country faces a significant lack of housing space, especially in the larger cities, providing a solid demand outlook for both AAC and CS
Slide 5: United Kingdom: market on track to be ahead of 2019 sales
United Kingdom: market on track to be ahead of 2019 sales, but capacity constraints limits additional growth Market conditions and trends _ * The UK Government has recently been very vocal around their ambitions to build more homes, but the exact roadmap towards a targeted 300,000 dwellings annually
Slide 6: Poland: strong market fundamentals driven by high demand
Poland: strong market fundamentals driven by high demand and a historical high number of building permits Market conditions and trends + Underlying demand remains strong with a historical high number of building permits being issued in the period from January to September 20210 * This trend has been
Slide 7: Effective cost resilience and favourable market conditions drive solid Q3 financials
Effective cost resilience and favourable market conditions drive solid Q3 financials Selected financial figures and ratios Q3.2021 932020 932019 Revenue aI 712 779 Cost of goods sold (561) 4”) (616) Gross profit before special items 250 241 263 SG&A and other operating income, net (79) (79) (al) EBI
Slide 8: Solid revenue growth across all markets
Solid revenue growth across all markets driven by continued high market activity and strong demand Revenue growth by market DKKm. Bubbles show revenue growth (organic growth) 7% (+6% 355 Consolidated revenue by quarter 332 304 17% (411%) 247 226 oy CWE UK DKKm 93 20190 03 2020 WH 03 2021 836 9 gil 7
Slide 9: Input-cost inflation and continued high transport costs put pressure on margins
Input-cost inflation and continued high transport costs put pressure on margins, but H+H will seek to offset impact through sales-price increases Gross profit and gross profit margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent, respectively DKKm and percent, respectively DKKm and
Slide 10: Acquisition of AAC factory in Germany main driver behind higher NIBD in Q3
Acquisition of AAC factory in Germany main driver behind higher NIBD in Q3 Net interest-bearing debt (“NIBD”) 230 — 3 149 a — —_ 76) 1 } NIBD NIBD _ Cashflowfrom Cash flowfrom IFRS16impactPurchaseof Other, incl FX __NIBD 31December 30 June 2021 operations investments treasury shares 30 September 202
Slide 11: Update on share buy-back programme
Update on share buy-back programme + As of 30 September 2021, a total of 338,600 shares, corresponding to 1.9% of the total share capital in H+H, had been bought back under the programme for a total purchase price of DKK 64 million. * Acquisitive growth remains the key strategic focus for H+H. * Giv
Slide 12: H+H narrows its previously communicated guidance ranges
H+H narrows its previously communicated guidance ranges Organic growth EBIT before special items ~11% 375 to 400 (Previously 8-11%) (Previously 360-400) DKKm Specific assumptions: The COVID-19 pandemic is not expected to have any material impact on construction activity levels or supply chains Excha
Slide 13: Acquisition of majority stake in DOMAPOR provides important expansion
Acquisition of majority stake in DOMAPOR provides important expansion of H+H’s Germany factory network Feuchtwangen acquisition * Acquisition of one AAC factory located in Feuchtwangen in Bavaria, Germany + The acquisition provides true national coverage for H+H's aircrete business + Through the acq
Slide 14: Acquisitions provide opportunity to upgrade the Wittenborn factory
Acquisitions provide H+H with the opportunity to upgrade the Wittenborn factory, as expanded factory network minimise impact on production + H+H plans to perform certain upgrades and maintenance on the Wittenborn factory in the Northern part of Germany + Asaconsequence of the upgrades, the Wittenbor
Slide 15: Slide 15
Slide 16: > = = © = _
5 > = = © = _
Slide 17: Supplementary information
Supplementary information
Slide 18: H+H at a glance
H+H at a glance H+H has 30 factories, and one additional factory under construction, in Northern and Central Europe with a total annual output of approximately four million cubic metres of walk building materials. The Group has a leading position in mist of its markets. @ Sales and administration Se
Slide 19: Five-year financial summary
Five-year financial summary Revenue and organic growth Gross profit and gross margin EBIT and EBIT margin I Revenue Dake % I Gross profit Dake % mci Dake % — Organic growth — Gross margin . 3,000 24 000 40 — EBIT margin 400 6 2,500 5 6 B00 30 300 e 2,000 600 9 1.500 8 20 200 400 6 1,000 . 2020 S00 ©
Slide 20: Business model: adding value to our customers throughout the wall-building process
Business model—we focus on adding value to our customers throughout the entire wall-building process Quality Manufacturing Value-added Sales oo Diversified Market Modern and Trusted partners in Innovative product solutions for carbon-friendly products wall building high-rise and low-rise 1H) Partner
Slide 21: Equity story
Equity story H+H remains in a unique position for continued growth due to attractive market fundamentals, a differentiated market approach, sustainable products, and a proven track record of strategy execution Unique market conditions for growth + Structural under-supply of housing + Governmental st
Slide 22: Consolidated income statement
Consolidated income statement income statement (DKK million) 032021932020 _Q1-032021__Q1-032020 FY.2020 Revenue gil 72 2,289 2,012 2.654 Cost of goods sold (561) (471) (1,600) (1.372) (1.818) Gross profit before special items 250 241 689 640 836 Sales costs (36) (37) (108) (110) asl) Administrative
Slide 23: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income Statement of comprehensive income (DKK million) Q32021 Q32020 Q1-93 2021 Q1-93 2020 FY 2020 Profit for the period 88 83 230 185 251 Items that may be reclassified subsequently to profit or loss: Foreign exchange adjustments, foreign entities @) (9) 1 (4
Slide 24: Consolidated balance sheet
Consolidated balance sheet Assets (DKK million) 30 Sep nes sone Equity and liabilities (DKK million) 30 Sep an we Non-current assets Equity Goodwill 292 21 202 Share capital 180 180 180 Other intangible assets 243 258 278 Retained earnings 1,595 1,405 1,359 Property, plant and equipment 1.598 1,538
Slide 25: Consolidated cash flow statement
Consolidated cash flow statement Cash flow statement (DKK million) 932021 93.2020 Q1-932021 Q1-03 2020 Operating profit (loss) 121 16 310 258 Financial income received 1 : 2 2 Financial items. paid a) ©) (18) (a6) Depreciation, amortisation and impairment losses 46 46 138 138 Gain and losses on sale
Slide 26: For further information, please contact
For further information, please contact Andreas Holkjaer Investor Relations and Treasury Manager +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