H+h International A/s · OMXCOP:HH
H+h International A/s — Q1 2019 Earnings Presentation
22 slides from H+h International A/s's earnings presentation, May 13, 2019
Slide 1: Investor presentation Q1 2019
Investor presentation Q1 2019 13 May 2019 Investor presentation, Q1 2019 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: Financial highlights
Financial highlights Q1 DKK million 2019 2018 variance Actual 666 434 53% Revenue Organic 529 434 22% Gross margin* 27% 22% 5% Before special items 97 40 57 EBITDA After special items 97 24 73 Before special items 55 13 42 EBIT After special items 55 (3) 58 EBIT margin Before special items 8% 3% 5%
Slide 4: Update of outlook 2019
Update of outlook 2019 • Revenue growth before acquisitions and measured in local currencies is expected to be around 7% (unchanged). • EBITDA before special items is expected to be DKK 460-510 million (previously DKK 445-495 million). • EBIT before special items is expected to be DKK 280-330 millio
Slide 5: Brexit – kicking the can down the road…
Brexit – kicking the can down the road… Timeline if Theresa May’s deal is not signed by 22 May 2019 23-26 May: European Parlimentary elections (No deal on 1 June if UK doesn’t take part). 20-21 June: European Council meeting (Brexit to be reviewed). 21-25 September: Labour Party conference. 29 Septe
Slide 6: Western European segment
Western European segment Q1 DKK million 2019 2018 variance Actual 464 307 51% Revenue Organic 389 307 27% Before special items 66 34 32 EBITDA After special items 66 19 47 Before special items 34 15 19 EBIT After special items 34 0 34 Investments 5 28 (23) • Organic growth in the quarter is predomin
Slide 7: Eastern European segment
Eastern European segment Q1 DKK million 2019 2018 variance Actual 202 127 59% Revenue Organic 143 127 12% Before special items 49 22 27 EBITDA After special items 49 21 28 Before special items 40 14 26 EBIT After special items 40 13 27 Investments 6 1 5 • The development is predominantly driven by P
Slide 8: Dialogue with potential buyers of H+H's Russian business
Dialogue with potential buyers of H+H’s Russian business Potential sale in line with the strategy from the Annual Report 2018 • H+H Russia LLC that has a modern aircrete factory producing high quality products and a strong and committed organization. • H+H will pursue opportunities to change the str
Slide 9: H+H supports customers from the very early planning stages
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, Q1 2019 13 May 2019 9
Slide 10: The new brand claim opens for further opportunities
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, Q1 2019 13 May 2019 10
Slide 11: Delivering on the strategy
Delivering on the strategy Reda CSU factory • Investment for a CSU production line on current AAC site in Reda near Gdansk, Poland, has been approved. • Best location compared to competitors from a proximity perspective. • Low cost investment due to co-location with existing production facility. • T
Slide 12: Q&A
Q&A Investor presentation, Q1 2019 13 May 2019 12
Slide 13: 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, Q1 2019 13 May 2019 13
Slide 14: Appendicies
Appendicies Investor presentation, Q1 2019 13 May 2019 14
Slide 15: Geographical footprint
Geographical footprint Sales and admin Aircrete factories Calcium silicate factories Investor presentation, Q1 2019 13 May 2019 15
Slide 16: External growth drivers
External growth drivers Macroeconomic Capacity utilisation Demography • GDP growth • Capacity utilisation in the • Urbanisation aircrete and calcium- • Inflation silicate industry • Housing stock • Governmental stimuli • Capacity utilisation in the • Demand for of housebuilding wall building materia
Slide 17: Risk factors
Risk factors Probability/impact Risk 2017 2018 Scenario Action Market With significant fixed costs, demand has a noticeable effect on H+H’s financial Monitoring economic and political developments in the various markets and effective sales performance. Developments in the global economy and especial
Slide 18: A powerful platform for continuing the strong development
A powerful platform for continuing the strong development Strong market position Track record Markets set for in successful growth restructuring Positive financial development Focused strategy Continuous has improved the operational flexibility of the improvements business Cyclicality, however geogr
Slide 19: The business model
The business model Investor presentation, Q1 2019 13 May 2019 19
Slide 20: Financial results
Financial results Revenue allocation 2018 EBITDA and EBIT margin development Financial gearing DKK million EBIT margin (%) EBITDA (DKK million) % DKK million Gearing Net interest-bearing debt Gearing 500 12 600 6 Western Europe, 72% Eastern Europe, 28% 400 10 400 4 300 8 200 6 200 2 UK, 32% 100 4 CW
Slide 21: Long-term trends
Long-term trends Long-term financial targets Long-term financial performance % Realised Target (range) Target (floor) 11% EBIT margin EBIT margin 15 (Operating margin before 12 9 special items) 6 At least 3 0 2014 2015 2016 2017 2018 % 20 12% ROIC ROIC 15 (Return on invested 10 capital) 5 At least 0
Slide 22: More than 100 years of experience
More than 100 years of experience Investor presentation, Q1 2019 13 May 2019 22