H+h International A/s · OMXCOP:HH
H+h International A/s — H1 2024 Earnings Presentation
13 slides from H+h International A/s's earnings presentation, Aug 14, 2024
Slide 1: H1 2024 Financial Results Conference Call
H+H International A/S H1 2024 Financial Results Conference Call 14 August 2024
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of H+H International A/S, may cause actual developments and results to differ materially from the expecta
Slide 3: Positive market trends in Poland and UK but no recovery in Germany
Positive market trends in Poland and UK Q2 2024 key takeaways but no recovery in Germany Selected financial figures (1) The UK and Polish markets continue positive trends Figures in DKKm unless otherwise stated. Q2 2023 figures in brackets from Q1. Adversely, the German market outlook below expectat
Slide 4: Double digit growth in the UK and Poland, Germany trending behind
Double digit growth in the UK and Poland, Germany trending behind Revenue by region in DKKm. The United Kingdom:. Q2 2023 Q2 2024 • Number of mortgage approvals and building registrations has been improving since the start of 2024. -25% • Optimism about Labour’s flagship policy, "Get Britain Buildin
Slide 5: Business improvement program delivering
Business improvement program delivering From Q1-2023… …to Q2-2024 32 operating plants 23 operating plants (plus 4 mothballed) Stock with around 3.5 months reach Stock with around 1.5 months reach 250m DKK fixed costs in operations 200m DKK fixed costs in operations Around 1700 employees Around 1300
Slide 6: Volume growth with country mix affecting organic growth
Volume growth with country mix affecting organic growth Volumes by quarter (Thousand m3) Revenue by quarter DKKm. Revenue growth / organic growth 1,000 1,182 920 1,018 -1% / -3% 810 899 +8% 731 725 699 779 641 644 723 740 719 601 634 648 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 202
Slide 7: Gross margin in Q2 still impacted by gas and significant de-stocking
Gross margin in Q2 still impacted by gas and significant de-stocking Gross Profit and Gross Margin Gross margin development Gross Profit (DKKm) Gross Margin (%) ▪ Gross profit in Q2 2024 was influenced by de-stocking. In contrast, there was a stock build-up in Q2 2023. 350 30 ▪ In the second quarter
Slide 8: Restructuring and special items
Restructuring and special items Special items Restructuring cost: Conditional sale of land in Poland ▪ In Q2 2024, DKK 13 million in restructuring costs ▪ H+H has agreed to a conditional sale of land and buildings from were recognised which mainly relates to CWE. its closed factory in Warsaw for a p
Slide 9: Decreasing NIBD in line with plan driven by de-stocking
Decreasing NIBD in line with plan driven by de-stocking Net interest-bearing debt Financial gearing DKKm. NIBD to EBITDA before special items Long-term financial target of 1-2x EBITDA 28 24 100 43 7 48 6.5x 6 5.1x 5 4 3.6x 1,006 993 3 2.6x 2.0x 2 1 0 NIBD EBITDA Working Payments of CAPEX incl. Inter
Slide 10: Outlook for 2024 narrowed
Outlook for 2024 narrowed The German market situation and the temporary closure of the Borough Green plant in the UK during July are leading us to narrow our guidance. The likely sale in Warsaw will be made in cash and be treated as a special item, having no impact on full-year guidance expectations
Slide 11: Key takeaways
Key takeaways The UK and Polish markets continues positive trends from Q1. 1 Adversely, the German market outlook below expectations. We have started to reinstall capacity and will reopen our 2 mothballed plant in Pollington (UK) to be prepared for future market growth. In Germany we are not seeing
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Slide 13: For further information, please contact
For further information, please contact Niclas Bo Kristensen Head of Investor Relations and Treasury nbk@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 13