H+h International A/s · OMXCOP:HH
H+h International A/s — H1 2016 Earnings Presentation
22 slides from H+h International A/s's earnings presentation, Aug 18, 2016
Slide 1: Investor presentation H1 2016
Investor presentation H1 2016 18 August 2016
Slide 2: Introduction
Investor presentation H1 2016 18 August 2016 2 Introduction Forward-looking statement Agenda The statements on the future in this presentation, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors • Highlights H1 2016 influencing the activ
Slide 3: Highlights H1 2016
Investor presentation H1 2016 18 August 2016 3 Highlights H1 2016 • 10% organic growth in the second • So far no significant market impact. Organic quarter. growth Brexit • Adverse exchange rate impact. • 11% organic growth YTD. • The situation is monitored very closely. • DKK 66 million in the seco
Slide 4: Financial performance
Investor presentation H1 2016 18 August 2016 4 Financial performance Q2 Year-to-date DKK million 2016 2015 Variance 2016 2015 Variance Actual 458 443 3% 825 786 5% Revenue Organic 487 443 10% 874 786 11% Gross margin 26% 25% 1% 25% 23% 2% Before special items 66 59 7 103 78 25 EBITDA After special i
Slide 5: Outlook 2016 and long-term financial targets
Investor presentation H1 2016 18 August 2016 5 Outlook 2016 and long-term financial targets Outlook Long-term DKK million Updated Previous financial targets Organic growth 5-6% 3-4% EBITDA * 190-210 190-210 Investments ~ 80 ~ 80 EBIT margin Min. 6-8% Return on invested capital Min. 12% * Before spec
Slide 6: Specific assumptions for outlook for 2016
Investor presentation H1 2016 18 August 2016 6 Specific assumptions for outlook for 2016 • Economic growth of around a negative 2% to a positive 3.5% in our geographical footprint. • Energy and raw material prices rise higher than inflation from their mid- August 2016 levels. • The commercial and op
Slide 7: Other selected items
Investor presentation H1 2016 18 August 2016 7 Other selected items • DKK 5 million in the second quarter against DKK 10 million last year. Credit • Committed facility in Danske Bank until CAPEX • DKK 15 million for first half against DKK facility 2018. 26 million last year. • 1.9x EBITDA at 30 June
Slide 8: Western European segment
Investor presentation H1 2016 18 August 2016 8 Western European segment Q2 Year-to-date DKK million 2016 2015 Variance 2016 2015 Variance Actual 362 344 5% 654 609 7% Revenue Organic 382 344 11% 688 609 13% Before special items 65 57 8 110 87 23 EBITDA After special items 65 54 11 106 84 22 Investme
Slide 9: Update on the UK situation
Investor presentation H1 2016 18 August 2016 9 Update on the UK GBP/DKK currency chart There is both positive and situation negative lead indicators in the latest public data and the public opinion. • Sales of aircrete not impacted by the result of referendum to leave Consensus is that it is too ear
Slide 10: Eastern European segment
Investor presentation H1 2016 18 August 2016 10 Eastern European segment Q2 Year-to-date DKK million 2016 2015 Variance 2016 2015 Variance Actual 96 99 (3%) 171 177 (3%) Revenue Organic 105 99 6% 186 177 5% Before special items 11 11 0 11 7 4 EBITDA After special items 9 11 (2) 8 43 (35) Investments
Slide 11: Q&A
Investor presentation H1 2016 18 August 2016 11 Q&A
Slide 12: Thank you
Investor presentation H1 2016 18 August 2016 12 Thank you H+H International A/S Dampfærgevej 3, 3rd Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 info@hplush.com www.hplush.com
Slide 13: Appendices
Investor presentation H1 2016 18 August 2016 13 Appendices
Slide 14: Geographical footprint
Investor presentation H1 2016 18 August 2016 14 Geographical footprint Production facility Sales and administration
Slide 15: Strategy and external growth drivers
Investor presentation H1 2016 18 August 2016 15 Strategy and external growth drivers MISSION VISION To supply value-added To be number one innovative aircrete aircrete supplier in our • GDP growth solutions to buildings geographical footprint. through profitable • Inflation partnerships with distrib
Slide 16: Commercial approach
Investor presentation H1 2016 18 August 2016 16 Commercial approach Quality aircrete Trusted partner - is the foundation of - is our reputation in our company the industry Build with ease House Construction Distributors builders companies Innovative solutions - are how we create results
Slide 17: Manufacturing process
Investor presentation H1 2016 18 August 2016 17 Manufacturing process The mixture is poured into moulds Cement Sand / Lime PFA powder Water Alu Rests Transfer and 6-8 hours wire-cut Autoclaving Mixer
Slide 18: Revenue allocation 2015
Investor presentation H1 2016 18 August 2016 18 Revenue allocation 2015 22% UK Germany Western Europe Poland Russia Eastern Europe Denmark Other 78%
Slide 19: EBITDA and EBIT margin development and EBITDA allocation 2015
Investor presentation H1 2016 18 August 2016 19 EBITDA and EBIT margin development and EBITDA allocation 2015 EBITDA EBIT % (DKK million) Western Europe Eastern Europe
Slide 20: Non-current asset allocation as of 31 December 2015
Investor presentation H1 2016 18 August 2016 20 Non-current asset allocation as of 31 December 2015 UK Western Europe Germany 51% 49% Eastern Europe Poland Russia
Slide 21: Net interest-bearing debt development and allocation as of 31 December 2015
Investor presentation H1 2016 18 August 2016 21 Net interest-bearing debt development and allocation as of 31 December 2015 Net interest-bearing debt Gearing (DKK million) GBP EUR PLN DKK
Slide 22: Pulverised fuel ash (PFA)
Investor presentation H1 2016 18 August 2016 22 Pulverised fuel ash (PFA) • Sourcing of PFA has been reviewed and optimised. • Use of stockpiled PFA leads to lower consistency in • The product can be used as raw manufacturing output. material in aircrete production and • Replacing PFA with sand for