H+h International A/s · OMXCOP:HH
H+h International A/s — FY2023 Earnings Presentation
18 slides from H+h International A/s's earnings presentation, Mar 6, 2024
Slide 1: Q4/FY 2023 financial results - conference call
H+H International A/S Q4/FY 2023 financial results - conference call 6 March 2024 PARTNERS IN WALL BUILDING
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: Introduction
Introduction Full year highlights. Strategic focus Financial performance Outlook Closing remarks Question and answers.
Slide 4: Performance highlights 2023
Performance highlights 2023 Markets Sales volume Percent -34% Inflation and interest rates have triggered a marketdownturnmoresevere than the 2008, financial crisis, leadingto a 34% fallin sales volumesin line with building activityin our markets, Building activity ‘000 % 300 700 600 500 400 300 200
Slide 5: Market development
Market development Key development H+H Full year revenue by region DKKm. Revenue growth (organic growth) a. ermany: Permits fell 25% compared to last year Factory network optimised from closures of 3 CSU plants and temporary mothballing 2 AAC plants. Focus on integrating CWE and SG&A rationalization
Slide 6: Transforming the business
Transforming the business Volume ‘000 m3 Avg. price Rev. per m3 # of plants # of employees Fixed production cost DKK million SG&A DKK million Capex Strategic focus Germany >1.700 392 266 Growth Acquisitions 23 >1.200 100 Savings 346 165 Network efficiencies Integrations. @ Aircrete Factories X Close
Slide 7: Strategic focus areas for 2024
Strategic focus areas for 2024 Key drivers FEFH Price discipline. Focus on price discipline in a challenging Se ~somarket fl Plant network efficiency. Further improving our Renn operations through higher uptime, debottlenecking and continuous improvements SG&A cost savings. Implementing further SG&A
Slide 8: Investing in plant efficiency: 20% more capacity at BG
Investing in plant efficiency: 20% more capacity at BG * Way of thinking: Serving the market with fewer plants = Optimising the efficiency of our remaining plants through higher uptime, debottlenecking and continuous improvements * In 2023, works started in Borough Green to remove bottlenecks around
Slide 9: Q4 impacted by lower volumes partly offset by sales price increases
Q4 impacted by lower volumes partly offset by sales price increases Consolidated revenue by quarter DKKm. Revenue growth (organic growth) Q12022 Q22022 Q32022 Q42022 Q12023 Q22023 Q32023 Q42023 Quarterly revenue pr region DKKm. Revenue growth (organic growth) -30% (-31%) M Q42022 MM Q4 2023 -28% (-3
Slide 10: Profitability in Q4 impacted by continued lower volumes and high energy costs
Profitability in Q4 impacted by continued lower volumes and high energy costs Gross profit and gross margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent DKKmand percent DKKm and percent WS Gross Profit Ml EBITDA Mi ceit — Gross Margin (%) —— Adj. EBITDA Margin (%) — EBIT Margin (%)
Slide 11: ..and the same drivers impacted the full year
..and the same drivers impacted the full year Gross profit and gross margin EBITDA and EBITDA margin EBIT and EBIT margin B® Gross Profit -- Adj. Gross Margin (%) MM EBITDA -- Adj. EBITDA Margin (%) Meet - = Adj. EBIT Margin (%). — Gross Margin (%) — EBITDA Margin (%) — EBIT Margin (%) 30% 9 229% ov
Slide 12: Restructuring costs and special items
Restructuring costs and special items = Total restructuring cost for full year 2023 amounted to DKK 133 million resulting in total cost savings of DKK 150 million = Inaddition, andas a result of the closure of plants, an impairment loss of DKK 101 million was acknowledged for production equipment fo
Slide 13: Financial leverage ratio impacted by lower EBITDA on a trailing 12-month basis
Financial leverage ratio impacted by lower EBITDA on a trailing 12-month basis Net interest-bearing debt (NIBD) Financial gearing NIBD to EBITDA before special items “eo 3.6x NIBD Q3 2023 3.5 Long-term financial target of 1-2x EBITDA Cash flow from operating activities il 30 2.6x CAPEX excl. IFRS 16
Slide 14: Unwinding gas contracts dating back to 2022
Unwinding gas contracts dating back to 2022 From 31 March 2024, we will unwind our gas contracts from 2022. This is expected to have following impact for 2024: = An immediate one-off financial impact of around negative DKK 95 million in Q1 2024, classified as special items = No effect on cash flow t
Slide 15: Outlook for 2024
Outlook for 2024 Revenue growth measured EBIT before special in local currencies (“organic items is expected to be growth") (DKKm) -5% to +5% Specific assumptions H+H's financial outlook is based on several specific and general assumptions, with management identifying the most important assumptions
Slide 16: For 2024 we expect building activity in line with 2023 levels
1 2 3 4 5 For 2024 we expect building activity in line with 2023 levels 16
Slide 17: 17
17
Slide 18: 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 18