H+h International A/s · OMXCOP:HH
H+h International A/s — Carnegie virtual seminar 2020
22 slides from H+h International A/s's conference presentation, Sep 7, 2020
Slide 1: Investor presentation, Carnegie virtual seminar
Investor presentation Carnegie virtual seminar 7 September 2020 Investor presentation, Carnegie virtual day 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 29% Calcium silicate 71% Aircrete (CSU) (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%) Sales and Administrat
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 Bo
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: Strategy update
Strategy update Organisational changes • Focus on three regions • Group innovation 32 % 28 % 40% 9 Investor presentation, Carnegie virtual day
Slide 10: 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 Opportunities for programmes to rise innovation • UK target of 300,000 dwellings (2019: 240,000) • Help to
Slide 11: Key figures
Key figures Q2 Figures H1 figures EBIT(bsi) EBIT margin (bsi) 11% 12% Revenue Revenue 596 57 DKK million 1,300 DKK million last year 114 DKK million 770 last year EBIT(bsi) ROIC 142 18% 16% last year DKK million Free cash flow last year Organic growth of (22)% 108 DKK million Capital expenditure of
Slide 12: Financial outlook reintroduced
Financial outlook reintroduced H+H Group Initial financial Financial Realised in H1 Financial outlook 2020 outlook 2020 2020 outlook 2020 24 March 2020 reintroduced Organic growth -2 to 2% Suspended -11 % -16 to -8 % EBIT DKK 300-360m Suspended DKK 142m DKK 250-300m CAPEX DKK 140-180m Suspended DKK
Slide 13: Q&A
Q&A Investor presentation, Carnegie virtual day 7 September 2020 13
Slide 14: 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, Carnegie virtual day 7 September 2020 14
Slide 15: Appendices
Appendices Investor presentation, Carnegie virtual day 7 September 2020 15
Slide 16: 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 17: Top six risks
Top six risks Investor presentation, Carnegie virtual day 7 September 2020 17
Slide 18: Top six risks
Top six risks Investor presentation, Carnegie virtual day 7 September 2020 18
Slide 19: 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 20: 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 21: 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, Carnegie virtual day 7 September 2020 21
Slide 22: 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, Carnegie virtual day 7 September 2020 22