H+h International A/s · OMXCOP:HH
H+h International A/s — H1 2015 Earnings Presentation
20 slides from H+h International A/s's earnings presentation, Aug 19, 2015
Slide 1: Investor presentation H1 2015
Investor presentation H1 2015 19 August 2015
Slide 2: Forward-looking statement
2 Forward-looking statement The statements on the future in this presentation, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors influencing the activities of the Group, e.g. the global economic environment, including interest and excha
Slide 3: Agenda
Agenda • Highlights H1 2015 • Financial performance • Grupa Prefabet • Balance sheet items • Outlook for 2015 • Q&A
Slide 4: Highlights H1 2015
Highlights H1 2015 H+H
Slide 5: Highlights H1 2015
5 Highlights H1 2015 • Organic growth in the second quarter was 11.2% (adjusted for acquisitions and measured in local currency) • Growth in all markets except for Russia. Activity in Russia is volatile and visibility is low • EBIT margin before special items was 7.3% in the second quarter and 4.1%
Slide 6: Financial performance H1 2015
Financial performance H1 2015
Slide 7: Group financial performance
7 Group financial performance Q2 2015 Year to date • Revenue up 22.6%, organic growth of 11.2% on • Revenue up 20.8% on H1 2014 from combination Q2 2014. Growth in all markets except for Russia of strong organic growth in the Western European segment and the acquisition of Grupa Prefabet • Gross mar
Slide 8: Segments – Western Europe
8 Segments – Western Europe Q2 2015 Year to date • Revenue up 22.3% on Q2 2014, organic growth • Revenue up 19.5% on H1 2014. Also for the half was 14.2%. This is based on growth in all the year there is growth in all the markets and the UK markets and with the UK as the main driver is the main driv
Slide 9: Segments – Eastern Europe
9 Segments – Eastern Europe Q2 2015 Year to date • Revenue up 23.7% on Q2 2014, organic growth • Revenue up 25.6% on H1 2014, mainly due to the was 0.5% acquisition of Grupa Prefabet • EBITDA was DKK 11 million before special items • EBITDA was DKK 7 million before special items against DKK 13 milli
Slide 10: Grupa Prefabet
Grupa Prefabet
Slide 11: Restructuring plan – goals set out and achievements
11 Restructuring plan – goals set out and achievements Closedown of four factories – is done Reduce net working capital by DKK 20 million in 2015 – DKK 22 million achieved in H1 2015 • Integration costs of DKK 20 million in 2015 • EBITDA before special items to improve by DKK 10 million in 2015
Slide 12: Closedown of four factories
Closedown of four factories Plants (#) Lithuania H+H (5) Russia Solbet (5) Xella (6) Reda Grupa P. (5) Others (9) CRH (Niegocin/ • 3 Grupa Prefabet factories stopped production in Oslawa (Studzienice) Wilkasy) Q1 2015 and remaining stocks are to be sold Belarus during 2015 Xella (Rurka) Solbet (So
Slide 13: Balance sheet items
Balance sheet items
Slide 14: Free cash flow and investments
14 Free cash flow and investments • Free cash flow was DKK 85 million, against DKK 38 million in Q2 2014 • The ratio of net working capital to sales decreased from 9.8% on 30 June 2014 to 7.4% on 30 June 2015, mainly driven by lower trade debtors • Investments of DKK 10 million against DKK 9 million
Slide 15: Net interest-bearing debt and equity
15 Net interest-bearing debt and equity • NIBD debt was DKK 560 million at 30 June 2015, down DKK 35 million on 30 June 2014 • NIBD over EBITDA ratio was 3, adjusted for special items the ratio was 3.5 • Credit facility of DKK 712 million with Danske Bank, committed until 15 February 2018. H+H will
Slide 16: Outlook for 2015
Outlook for 2015
Slide 17: Outlook for 2015
17 Outlook for 2015 H+H updates the outlook for 2015 • Organic revenue growth is expected to be in the region of 10%, against the previously announced 6-8% • EBITDA before special items is expected to be DKK 160-180, against the previously announced DKK 150- 170 million • EBIT margin is expected to
Slide 18: Comments to outlook for 2015
18 Comments to outlook for 2015 The expectations for H+H’s financial performance in 2015 are based partly on the following specific assumptions: • Economic growth of around 0-3% in our geographical footprint • The operational excellence programme continues and reduces production costs further • Exch
Slide 19: Long-term financial targets
19 Long-term financial targets
Slide 20: H+H Q&A
H+H Q&A