H+h International A/s · OMXCOP:HH
H+h International A/s — Danske Bank Winter Seminar 2020
24 slides from H+h International A/s's conference presentation, Dec 2, 2020
Slide 1: Investor Presentation Danske Bank Winter seminar
Investor Presentation Danske Bank Winter seminar 2 December 2020 Investor presentation, Danske Bank Winter Seminar 1
Slide 2: H+H is partner in wall building across Europe
H+H is partner in wall building across Europe Introduction H+H is a wall building materials provider. The core activity is production and sale of autoclaved aerated concrete (AAC or aircrete) and calcium silicate units (CSU or sand lime bricks). The products are building blocks used for wall buildin
Slide 3: Revenue allocation FY 2019
Revenue allocation FY 2019 Product split revenue DK Revenue share 29% 71% 6% Calcium silicate (CSU) Aircrete (AAC) Revenue share Gross profit split: CSU 30% / AAC 70% 31% Revenue share 27% Revenue share 25% Strong market positions United Kingdom (31%) Germany (25%) Poland (27%) Other markets (17%) S
Slide 4: Equity story
Equity story 1. European market leading 2. Unique market conditions 3. M&A – Proven track record position in AAC and CSU products for growth of strategy execution Top 2 positions in all key markets Structural under-supply of housing Fragmented markets with room for market share gains and consolidati
Slide 5: H+H has a solid strategic execution
H+H has a solid strategic execution… ‘Create ‘Save the Planning shareholder value’ company’ strategy ‘Create balance’ ‘Partner in wall building’ strategy including to ensure survival as strategy with H+H acting as consolidator AAC in Poland and an independent CSU idea to optimize current footprint B
Slide 6: …which has created significant increase in earnings
…which has created significant increase in earnings EBITDA has increased with DKK 400 million EBITDA (bsi), DKKm +402 from 2014-2019 stemming from: 539 • Consolidation 410 • Process improvement • Synergies 242 211 182 • Higher market demand 137 M&A investments in the period: 2014 2015 2016 2017 2018
Slide 7: Strategic development: Improved diversification to meet market challenges
Strategic development Improved diversification to meet market challenges Revenue 2014 2019 Diversified footprint Other markets Other markets • Three core markets established in recent years 13% 14% – UK, Germany and Poland Russia UK Russia 3% 31% • Two product lines – AAC and CSU 12% • Russian busin
Slide 8: Performance Highlights 2015-2019
Performance Highlights 2015-2019 Gross profit (bsi) and gross margin 31% Financial Gearing 0.8x EBIT (bsi) and EBIT margin 13% Gross profit Net interest-bearing debt EBIT Gross margin Financial gearing EBIT margin DKKm DKKm DKKm 1.000 31% 600 3 400 29% 350 18% 800 500 27% 300 15% 400 2 600 25% 250 1
Slide 9: External growth drivers – market fundamentals
External growth drivers – market fundamentals Structural Governmental Demography Sustainability undersupply stimuli of housing Demand exceeds Supply Governmental housing Housing demand continue to Opportunities for innovation programmes rise • UK target of 300,000 dwellings • Reduce Co2 emissions (2
Slide 10: History of UK Housing Market
History of UK Housing Market Current completions are still at intergenerationally low levels, leaving scope for future growth in the housebuilding market. Housing completions – mid-case scenario Housing completions k, GB k, GB Historic Period of growth/stability Historic Period of decline ~40% drop
Slide 11: UK - Housing Market Activity
UK - Housing Market Activity Source: Connells Group Investor presentation, Danske Bank Winter Seminar 2 December 2020 11
Slide 12: Key figures
Key figures Q3 Figures Q1-Q3 figures EBIT(bsi) EBIT margin (bsi) 13% 14% Revenue Revenue 712 116 DKK million 2,012 DKK million last year 137 DKK million 779 last year EBIT(bsi) ROIC 258 18% 19% last year Free cash flow DKK million last year Organic growth of (7)% 136 DKK million Capital expenditure
Slide 13: Gross margin kept at high level despite UK market in lockdown
Gross margin kept at high level despite UK market in lockdown Gross margin quarters, percentage 0% Q3 gross margin of 34%, Q3 2019 level kept 34% 34% 32% • Lower volumes and higher input costs, offset by lower 30% 28% transport costs, efficiency improvements as well as overall price increases Gross
Slide 14: Financial outlook updated
Financial outlook updated Upgrade due to higher than expected demand in the UK market for the remaining part of 2020 H+H Group Initial financial Financial Financial Realised in Updated outlook 2020 outlook 2020 outlook 2020 YTD 2020 financial 24 March 2020 reintroduced outlook 2020 Org. growth -2 to
Slide 15: Q&A
Q&A Investor presentation, Danske Bank Winter Seminar 2 December 2020 15
Slide 16: Thank you
Thank you H+H International A/S Lautrupsgade 7, 5th Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 info@hplush.com www.hplush.com Investor presentation, Danske Bank Winter Seminar 2 December 2020 16
Slide 17: Appendices
Appendices Investor presentation, Danske Bank Winter Seminar 2 December 2020 17
Slide 18: Business model – We focus on adding value to our customers
Business model – We focus on adding value to our customers throughout the entire wall building process Quality Manufacturing Value-added Sales Diversified Market Quality products of nature’s own material Trusted partners in wall building Innovative product solutions for high-rise and low-rise Key ra
Slide 19: Top six risks
Top six risks Investor presentation, Danske Bank Winter Seminar 2 December 2020 19
Slide 20: Top six risks
Top six risks Investor presentation, Danske Bank Winter Seminar 2 December 2020 20
Slide 21: We partner to develop sustainable end-products
Planning Delivery Building Sales We partner to develop sustainable end-products At the end of the day, homes, flats, offices and other buildings need to be comfortable, safe and sustainable. Our wall building solutions have been specially developed to deliver futureproof results. An improved indoor
Slide 22: More than 100 years of experience
More than 100 years of experience European wall building provider as consolidator Turn around Normalisation and expansion H+H as a conglomerate 1909 1958 1962 1985 1998 2000 2005 2008 2009 2010 2011 2015 2018 2019 1937 2003 2017 Henriksen & W. Kähler – established joint gravel pit enterprise Focus o
Slide 23: H+H supports customers from the very early planning stages with a complete range
H+H supports customers from the very early planning stages with a complete range of sustainable wall building solutions, process expertise and guidance on how to optimize the wall building process. Investor presentation, Danske Bank Winter Seminar 2 December 2020 23
Slide 24: The new brand claim opens for further opportunities to expand the product portfolio into
The new brand claim opens for further opportunities to expand the product portfolio into other wall building materials. For the time being, restructuring within our existing products in Central Europe is top of the agenda. Investor presentation, Danske Bank Winter Seminar 2 December 2020 24