H+h International A/s · OMXCOP:HH
H+h International A/s — Winter Seminar 2022, hosted by Danske Bank
33 slides from H+h International A/s's conference presentation, Nov 23, 2022
Slide 1: H+H International A/S
H+H International A/S Winter Seminar, Danske Bank
Slide 2: Introduction
Introduction Contents Introduction to H+H Introduction to new CEO Market update Financials 2022 financial outlook Our Journey towards net zero Equity Story Questions and answers Supplementary information H+H is a Poriner ip Val) Sulcine across Europe H+H is a wall-building materials provider. The co
Slide 3: H+H at a glance
H+H at a glance H+H is a leading provider of solutions and materials for wall building. Over the recent years, 1+!) has grown significantly through acquisitions and now has a strong and diversified market position across its geographies, serving as a solid foundation for continued growth. Founded in
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-qual
Slide 5: Pleased to have joined H+H Group
Pleased to have joined H+H Group
Slide 6: The United Kingdom: Current undersupply to demand mitigates uncertainty in the medium term
The United Kingdom: Current undersupply to demand mitigates uncertainty in the medium term Market conditions and trends * Inthe private housing segment, demand remains resilient, but in combination with the growing inflation, rising interest rates have led to decreases in expected starts. + While ac
Slide 7: Poland: Growing inflation impacts construction starts while the country faces a growing need for additional housing space
Poland: Growing inflation impacts construction starts while the country faces a growing need for additional housing space Market conditions and trends * The number of building permits issued over the period remains at a reasonable high level, driven by changes in legislation. + However, due to growi
Slide 8: Central Western Europe: Strengthened factory network in a time of growing uncertainty
Central Western Europe: Strengthened factory network in a time of growing uncertainty Market conditions and trends Germany: * The country faces growing inflation rates, in large part due to rising natural gas prices driven by uncertainties related to future supply. * The number of building permits f
Slide 9: Two latest acquisitions in Germany support factory upgrades and provide growth opportunities
Two latest acquisitions in Germany support factory upgrades and provide growth opportunities 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,
Slide 10: Financial
Financial position ~ “ V
Slide 11: 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 nic revenue (DKKm) 2,500 : : : : | ; i 500 201 2016 2017 2018 2019 2020 2021 2014 (1) Revenue in 2 10-19 pandemic and the three-month Nati
Slide 12: 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 13: H+H has managed to grow its business significantly without over-leveraging the company
320 280 240 200 160 120 80 40 40 H+H has managed to grow its business significantly without over-leveraging the company Free cash flow Before acquisitions and divestments (DKKm) 291 2015 2016 -26 2017-2018 2019 2020 2021 Q32022 Uncommitted accordion Revalving Credit Facility Committed aecardion Term
Slide 14: Status on DKK million share buy-back programme
Status on DKK 150 million share buy- back programme + As of30 September 2022, a total of 770,300 shares, corresponding to 4.4% of the total share capital in H+H, had been bought back under the programme for a total purchase price of DKK 113 million. + Further investments in profitable growth remains
Slide 15: Financial outlook for the full year 2022 narrowed
Financial outlook for the full year 2022 narrowed Organic growth EBIT before special items ~15% 440 to 470 (Previously 15% to 20%) (Previously 440 to 520) DKKm Specific assumptions: + Exchange rates, primarily the British pound ("GBP"), the euro ("EUR") and the Polish zloty ("PLN"), are expected to
Slide 16: Our journey towards net-zero emissions
Na Lee Our journey towards net-zero emissions 2022 2030 2050 As the first manufacturer of AAC and We commit to reducing absolute scope 1 We commit to achieving net-zero CSU products, H+H committed to an and 2 greenhouse-gas emissions by emissions in our operations and ambitious products by @15°C 46%
Slide 17: Equity story: We remain in a unique position for continued growth
Equity story: We remain in a unique position for continued growth due to unique market conditions, a differentiated market approach, sustainable products and solid strategy execution 4A Unique market conditions for crowlh + Structural under-supply of housing + Government commitment and stimuli progr
Slide 18: Questions and answers
ai H+H Questions and answers
Slide 19: Supplementary information
Slide 20: Business model
Business model Resources People We value our workforce, recognise the advantages of diversity and believe in the equality of people Raw materials Our products are made of sand, water and lime, with cement and aluminium added for aircrete Factory network We have created strong network of factories an
Slide 21: Q3 2022: High-inflation environment continued to drive price increases, while market demand started to soften
Q3 2022: High-inflation environment continued to drive price increases, while market demand started to soften Selected financial figures for Q3 2022 Figures in DKKm unless otherwise stated. Q3 2021 figures in brackets Organic growth Gross margin EBIT margin 7% 28% 12% (13%) (31%) (15%) Return on Inv
Slide 22: Quarterly revenue driven by the continued implementation of sales price increases
Quarterly 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) fl 932021 M03 2022 13% (
Slide 23: Margins under pressure in Q3 2022 driven by German factory updates and high inflation
Margins under pressure in Q3 2022 driven by German factory updates and high 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 31% - 28% 21% ° 17% + 15% ~ 12% ry 151 101 93
Slide 24: Strong start contributes to solid organic growth across all regions for Q1-Q3 2022
Strong start contributes to solid organic growth across all regions for Q1-Q3 2022 Consolidated Q1-Q3 revenue Q1-Q3 revenue by region DKKm. Bubbles show revenue growth (organic growth) DKKm. Bubbles show revenue growth (organic growth) Ml Q1-93 2021 MM 1-03 2022 ED 1,242 1,050 F1B% (+16%D LA% (38D 8
Slide 25: Continued gross margin defence and leverage of SG&A drives EBITDA and EBIT margins in Q1-Q3 2022
Continued gross margin defence and leverage of SG&A drives EBITDA and EBIT margins in Q1-Q3 2022 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% a” 29% 20% 20% 4 14% 14% ° o 2
Slide 26: Summary of strategic targets
Summary of strategic targets Long-term targets Mid-term targets Short-term targets H+H commits to achieving net-zero emissions in our operations and products by 2050 EBIT margin before special items Increased from 11% 14% in 2021 H+H commits to reducing absolute Scope 1 and 2 greenhouse-gas emission
Slide 27: Performance highlights
Performance highlights Revenue and organic growth Gross profit and gross margin before special items EBIT and EBIT margin before special items. MMM Revenue [EE Gross profit DkKm % DkKm % DkKm % = Organic growth = Gross margint® Mims cere) 3500 24 1,000 40 — EBIT margin’ 500 6 3,000 | 800 400 2 2500
Slide 28: Five-year financial summary
Five-year financial summary Income statement (DKK million) 2021 2020 2019 2018. 2017 Financial ratios 2021 2020 2019 2018. 2017 Revenue 2,654 2840 2523 1,622 Organic growth (6%) 6% 18% 3% Gross profit before special items 836 877 690 452 Gross margin before special terns 31% 31% 27% 27% EBITDA befor
Slide 29: Condensed consolidated income statement
Condensed consolidated income statement Income statement (DKK million) Revenue Cost of goods sold Gross profit before special items Sales costs Administrative costs Other operatingincome and costs, net EBITDA before special items Depreciation, amortisation and impairment losses EBIT before special i
Slide 30: Condensed consolidated statement of comprehensive income
Condensed consolidated statement of comprehensive income Statement of comprehensive income (DKK million) Profit for the period Items that may be reclassified subsequently to profit or loss: Foreign exchange adjustments, foreign entities Items that will not be reclassified subsequently to profit: Act
Slide 31: Condensed consolidated balance sheet
Condensed consolidated balance sheet Assets (DKK million) 31Dec. 2021 30 Sep. 2021 Equity and liabilities (DKK million) 31Dec. 2021 30 Sep. 2021 Non-current assets Equity Goodwill 364 292 Share capital 180 180 Other intangible assets 296 243 Retained earnings 1,662 1,595 Property, plant and equipmen
Slide 32: Condensed consolidated cash flow statement
Condensed consolidated cash flow statement Cash flow statement (DKK million) Q32021 Q1-93 2021 Operating profit (loss) Financial income, received Financial items, paid Depreciation and amortisation Gain and losses on sale of assets and other non-cash effects Change in working capital Change in provi
Slide 33: 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 Winter Seminar | Hosted by Danske Bank
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