H+h International A/s · OMXCOP:HH
H+h International A/s — Danske Bank Winter Seminar 2021
22 slides from H+h International A/s's conference presentation, Dec 1, 2021
Slide 1: Danske Bank Winter Seminar 2021
Dansk int Wee 2021 Copenhagen, 1 December 2021
Slide 2: Agenda
Agenda Contents Introduction to H+H Organic growth Strategic growth journey Five-year financial highlights 2021 financial outlook Equity story Questions and answers Supplementary information H+H is a partner in wall building across Europe H+H is a wall-building materials provider. The core activity
Slide 3: H+H at a glance
H+H at a glance H+H currently has 30 factories in Northern and Central Europe with a total annual output of approximately four million cubic metres of wall- building materials. The Group has a leading position in most of its markets. @ Sales and administration Se @ Aircrete factories @ Calcium silic
Slide 4: Our products and wall-building solutions can be used for a variety of projects
Our products and wall-building solutions can be used for a variety of projects A strong solution in sustainable building Our homes, flats, offices and other buildings need to be - = comfortable, safe and sustainable. Our wall-building solutions have | | been specifically developed to deliver high-qu
Slide 5: Modern and carbon-friendly products with increasing market penetration
Modern and carbon-friendly products with increasing market penetration Modern and long-lasting products... Aircrete was invented in the early-1930’s, decades or even centuries later than timber, concrete, clay, and bricks. H+H’s products have an expected lifetime of 100-150 years. ..with sustainable
Slide 6: The business has shown solid organic-growth rates over recent years
The business has shown solid organic-growth rates over recent years Organic revenue Revenue in local currencies, excluding acquired and divested businesses, DKKm Organic revenue (DKKm) 3,000 2,500 2,000 1,500 1,000 500 2015 2016 2017 2018 2019 20200 (1) Revenue in 2020 was negatively impacted by the
Slide 7: Since 2014, H+H has grown considerably through several profitable acquisitions
Since 2014, H+H has grown considerably through several profitable acquisitions H+H has a strong track record as a market consolidator. Since 2014, the strategy has been focused on consolidating the European whitestone market with a primary focus on Germany and Poland. Number of factories in H+H port
Slide 8: Two most recent acquisitions provide important expansion of H+H's German factory network
Two most recent acquisitions provide 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 acquisition, H+H
Slide 9: Five-year financial summary
Five-year financial summary Revenue and organic growth Gross profit and gross margin EBIT and EBIT margin I Revenue kon % WM Gross profit Ay, % mein kK % —* Organic growth | = Gross margin’ . 3,000 24 1,000 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
Slide 10: Financial outlook for the full year 2021
Financial outlook for the full year 2021 Organic growth EBIT before special items ~11% 375 to 400 (Previously 8% to 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 + Exchange rat
Slide 11: 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 vo + Structural under-supply of housing + Governmental
Slide 12: Questions?
Slide 13: Supplementary information
Supplementary information
Slide 14: 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 15: 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 16: 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 17: 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 18: Generic product's carbon life-cycle assessment and path to net-zero
Generic product’s carbon life-cycle assessment and path to net-zero The path to net- zero Scope 1 Scope 2 Scope 3 Scope 3 Total in 2020 Scope 1 Scope 2 Scope 3 Upstream Scope 3 Total in 2050 Upstream. Downstream Downstream Recarbonation 80% reduction 80% reduction >90% reduction 100% reduction (tran
Slide 19: Strategic ambitions
Strategic ambitions Long-term financial targets EBIT margin® Return on Invested Capital Financial gearing 2020: 13% 2020: 18% 2020: 0.4x Non-financial targets + Achieve net-zero emissions in H+H's operations by 2050 + Reduce lost-time-incidents frequency (LTIF) to 3 by 2024 + Reduce absent 2024 eism
Slide 20: Recent acquisitions provide opportunity to strengthen German factory network
Recent acquisitions provide opportunity to strengthen German factory network and build a solid foundation for future growth + H+H plans to perform certain upgrades and maintenance on the Wittenborn factory in the Northern part of Germany + Asaconsequence of the upgrades, the Wittenborn factory will
Slide 21: More than 100 years of experience
More than 100 years of experience Hell asa conglomerate 1909 1997 1958 1962 reas 1998 2003, European wall building provider as consolidator, Turnaround 8 2008 200¢ Normalisation and expansion 2020 2018 2019 ans © Henriksen & W. Kahler ~established joint gravel pitenterprise # Business expanded with
Slide 22: 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 270200 info@hplush.com www.hplush.com