H+h International A/s · OMXCOP:HH
H+h International A/s — FY2022 Earnings Presentation
19 slides from H+h International A/s's earnings presentation, Mar 2, 2023
Slide 1: Q4/FY 2022 Financial results
H+H 4 H+H International A/S 4. a é / d Q4/FY 2022 Financial results 4 P= f
Slide 2: Introduction
Introduction Contents Highlights Sustainability Update Market update Strategy Update Financial performance & Outlook Closing remarks Questions and answers H+H is a Poriner ip Val) Sulcine across Europe H+H is a wall-building materials provider. The core activity is the production and sale of autocla
Slide 3: Full-year 2022: Strong start to the year secured best result ever
Full-year 2022: Strong start to the year secured best result ever while market dynamics changed in the second half of the year Selected financial figures Figures in DKKm unless otherwise stated. Full-year 2021 figures in brackets Organic growth Gross margin 14% 28% (13%) (30%) Return on Invested Cap
Slide 4: Sustainability highlights
Sustainability highlights During 2022, we executed on our plans to meet our ESG commitments. The results show a positive development towards our targets. Results 2022 cP Steady safety performance 3.6 Lost-Time Incident Frequency (LTIFy versus a target of 5. Long-term targets x Reduced carbon Lower w
Slide 5: Central Western Europe: Operating with a stronger factory network
Central Western Europe: Operating with a stronger factory network Market con Germany: * Strong newbuild activity in H1 of 2022 * Higher market uncertainty in H2 driven by high inflation, risk of energy supply and rising interest rates + Market data of building permits showing a 13% decline year on y
Slide 6: The United Kingdom: Historic undersupply offers an opportunity in high inflation market
The United Kingdom: Historic undersupply offers an opportunity in high inflation market Market conditions and trends * High demand in residential newbuild throughout 2022 * High inflation and increased market uncertainty led to lower demand for housing in 2H + Market data for 2023 suggest a downturn
Slide 7: Poland: High uncertainty impacts construction starts in newbuild
Poland: High uncertainty impacts construction starts in newbuild Market conditions and trends + Polish purchasing power significantly lower influencing investment decisions + Dwelling starts have decreased by approximately 28% year on year. Building permits down 13% same period. + Long-term shortage
Slide 8: Long-term profitable growth opportunities
Long-term profitable growth opportunities Current product portfolio Aircrete Calciumsilicate Other wall-building materials Central huge Get bi and adjacent mark Western pouch d erationsa nt isitions urope Explore profitable and synergetic The United M&A opportunities within new product segments to f
Slide 9: Q4 revenue driven by continued implementation of sales price increases
Q4 revenue driven by the continued implementation of sales price increases to offset inflationary pressure Consolidated revenue by quarter Quarterly revenue by region DKKm. Bubbles show revenue growth (organic growth) DKKm. Bubbles show revenue growth (organic growth) lM 042021 im aaeD MM 04 2022 FL
Slide 10: Margins under pressure in Q4 2022 primarily driven by a slow down in Poland
Margins under pressure in Q4 2022 primarily driven by a slow down in Poland and production costs Gross profit and gross margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent, respectively DKKm and percent, respectively DKKm and percent, respectively 30% ° 25% ° 19% ° 14% 13% ° ° 7% °
Slide 11: Strong start contributes to solid revenue growth across all regions for full-year 2022
Strong start contributes to solid revenue growth across all regions for full-year 2022 Revenue growth Revenue by region DKKm. Bubbles show revenue growth (organic growth) DKKm. Bubbles show revenue growth (organic growth) mou mgs F19% (+14%D MQ a $29% (418%) 874 2021 2022 Central Western Europe Unit
Slide 12: Firm pricing discipline and procurement efforts helped offset negative margin impact
Firm pricing discipline and procurement efforts helped offset negative margin impact from inflation Gross profit and gross margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent, respectively DKKm and percent, respectively DKKm and percent, respectively 30% 4 28% 20% 2 18% 14% 13% 202
Slide 13: Cash-flow generation negatively affected by inventory build-up in Q4 primarily in Poland
Cash-flow generation negatively affected by in Q4 primarily in Poland nventory build-up Free cash flow, excl. acquisitions and divestments DKKm 657 316 a EBITDA before Specialitems EBITDA Change inNWC Financial Taxes paid Other Cashflow from Capital Free cash flow special items items, net operations
Slide 14: Increase in interest-bearing debt driven by capital expenditures and treasury share purchase
Increase in interest-bearing debt driven by capital expenditures and the purchase of treasury shares - Financial gearing remains below H+H’s long-term target Net interest-bearing debt (“NIBD”) Financial gearing DKKm Net interest-bearing debt to EBITDA before special items io 492 2.0x Long-term finan
Slide 15: DKK million share buy-back programme concluded
DKK 150 million share buy-back programme concluded * As of3 January 2023, a total of 1,118,800 shares, corresponding to 6.4% of the total share capital in H+H, had been bought back under the programme for a total purchase price of DKK 150 million. * Itis expected that any shares bought back under th
Slide 16: Financial outlook for the full year 2023
Financial outlook for the full year 2023 After recent years of high activity in the building industry, building permits are currently declining across our markets. We expect this to impact market demand in combination with continuing high input cost pressure. Revenue growth EBIT before special items
Slide 17: Full year 2022 delivered strong results but market dynamics are changing
Full year 2022 delivered strong results but market dynamics are changing and impact future growth and earnings Strongest-ever full year results driven by high market activity in the first part of the year and successful implementation of sales-price increases secured growth in 2022. =] — H+Hhas init
Slide 18: Questions and answers
Slide 19: For further information, please contact
For further information, please contact Niclas Bo Kristensen Head of Investor Relations and Treasury +45 24 48.03 67 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