H+h International A/s · OMXCOP:HH
H+h International A/s — Investor Presentation (October 2015)
25 slides from H+h International A/s's investor presentation, Oct 8, 2015
Slide 1: Investor presentation at the Żelisławice factory
Investor presentation at the Żelisławice factory H+H Poland 8 October 2015
Slide 2: Forward-looking statement
2 Forward-looking statement 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 influencing the activities of the Group, e.g. the global economic environment, including interest and excha
Slide 3: Agenda
Agenda • Introduction to the plant in Żelisławice and safety briefing • Factory tour • Manufacturing setup for H+H Polska • Synergies from the acquisition of Grupa Prefabet • Macroeconomic overview • The aircrete market • Other building materials • The new market situation • Q&A
Slide 4: History
4 History • 1971: State-owned company was established with PL standard (Reda layout), first cake AAC was made • 1995: State-owned company was privatised – stand-alone company AHG Prebet Sp. z o.o. • 2003: Company collapsed and the property was leased by Gofabet Gorzkowice S.A. • 2004: Factory was ta
Slide 5: General information about the Żelisławice plant
5 General information about the Żelisławice plant H+H Group plants locations • Factory located south part of Poland, rural area, quite close to Silesia, huge industrial, coal mining area Lithuania Russia • Main suppliers: GP Reda • Cement – CRH, Grupa Ożarów – 150 km GP • Lime – Trzuskawica – 55 km,
Slide 6: Żelisławice factory layout
6 Żelisławice factory layout • Modern Wehrhahn layout • Built in 2009 • Small version of H+H Russia
Slide 7: Safety briefing before going to the factories
7 Safety briefing before going to the factories
Slide 8: Factory tour
Factory tour
Slide 9: Żelisławice - Production and sales volumes 2005 - 2014
9 Żelisławice - Production and sales volumes 2005 - 2014* 140000 120000 100000 80000 production (m3) 60000 sales (m3) 40000 20000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 * Source: Internal H+H and GP data
Slide 10: Żelisławice - Main assortments and characteristics
10 Żelisławice - Main assortments and characteristics Main production – AAC – blocks Dry density declared 400 500 600 700 Gross density range [kg/m3] 350-400 450-500 550-600 650-700 Compressive strength 2.0 3.0 3.0 4.0 declared [Mpa] The rate of thermal 0.105 0.13 0.16 0.18 conductivity [W/(m K)]
Slide 11: Comparison of density and compressive strength for main competitors
11 Comparison of density and compressive strength for main competitors Factory/density 300 350 400 500 550 600 700 H+H Gorzkowice 1,5 2,0 2,5 4,0 5,0 5,0 6,0 TLMB H+H Lidzbark - - - 2,5 - 3,0 - TLMA/GPLM H+H Warszawa - - - 2,5 - 3,0 - TLMB H+H Reda - - 2,0 3,0 - 3,0 -4,0 - TLMB H+H Puławy - - - 2,5
Slide 12: Integration process - what has been done so far?
12 Integration process - what has been done so far? Plants which continue the production (6): Reda, Lidzbark, Plants where the production has been shut down (4): Wilkasy, Gorzkowice, Żelisławice, Warszawa, Puławy Kozienice, Długi Kąt, Skawina Unitary purchasing policy – common suppliers Redundan
Slide 13: Żelisławice, upcoming projects
13 Żelisławice, upcoming projects • Fully integrated organisation with H+H Group to be completed • Investment opportunities • General improvement of factory assets to reduce maintenance and/or improve OEE • New standard and space for storage area • Investments will be initiated as market prices norm
Slide 14: The commercial aspects
14 The commercial aspects
Slide 15: Polish economy – H1 2015
15 Polish economy – H1 2015 • High GDP growth compared to EC-28 • Negative CPI anticipated for 2015 after flat 2014 • Pressure on prices in construction since the financial crisis
Slide 16: Remarks from the Polish National Bank, July 2015
16 Remarks from the Polish National Bank, July 2015 According to the report of the Polish National Bank from July 2015 • the GDP growth rate in Poland will develop at a stable level and in the years 2015-2017 will average 3.6% (the same level as in Q1 2015). Moderate recovery in the euro area will o
Slide 17: Key market factors – H1 2015
17 Key market factors – H1 2015 • Building permits issued (2015 Jan-Jun, y-o-y): 86.4 thousand units (+13.0%) • Housing starts (2015 Jan-Jun, y-o-y): 80.3 thousand units (+11.2%) • Dwellings completed (2015 Jan-Jun, y-o-y): 63,7 thousand units (-4.0%), of which 60.6% house builders (individual inves
Slide 18: Udziały H+H w rynku ABK PL
18 Polski rynek ABK 4,0 (4,1) miliony m3 6,5 Mm3 moce produkcyjne Polski rynek ABK na tle EU Nr 1 Penetracja rynku ABK 2013 40% (20,7% EU średnio) Udziały H+H w rynku ABK PL 15% [Nr 2/3] (23% HHG średnio) 28 AAC operating plants in 2015
Slide 19: Udziały H+H w rynku ABK PL
19 Polski rynek ABK 4,0 (4,1) miliony m3 6,5 Mm3 moce produkcyjne Polski rynek ABK na tle EU Nr 1 Penetracja rynku ABK 2013 40% (20,7% EU średnio) Udziały H+H w rynku ABK PL 15% [Nr 2/3] (23% HHG średnio) 24 AAC operating plants in 2015
Slide 20: Brief characteristic of our key AAC competitors (before takeover 2015-02)
20 Brief characteristic of our key AAC competitors (before takeover 2015-02) SOLBET – Market leader (volume driven – push strategy) 5 production sites 1,600 tm3 (active all over PL + export to RU, BY, UA, SK, CZ) Gains from economies of scale. Very aggressive offering at low prices to our cust
Slide 21: Building materials – AAC substitutes
21 Building materials – AAC substitutes Aircrete (24 plants) 40% wall market penetration Residential buildings: developers and individual investors Non-residential: industrial, commercial and agriculture Tradition (East PL) Ceramics porous (17 plants excl. small local brick producers) 35% wall
Slide 22: H+H
~ H+H
Slide 23: H+H and GP integration process 2015 Production footprint
23 H+H and GP integration process 2015 Production footprint Relocation of production units H+H Group (H+H PL i GP) production capacity Production units Lithuania Russia GP Reda 1 Gorzkowice (H+H) - 1968 2 Warszawa (H+H) - 1953 GP 3 Puławy (H+H) -1970 Wilkasy Belarus 4 Skawina * (H+H) - 1972 H+H Lidz
Slide 24: Removal of capacity
24 Removal of capacity • Until 30 June 2015 we have sold approx. similar volume as Grupa Prefabet did in H1 2014 • Hence competitors have not yet felt the lower supply of volume into the market • We will carefully observe how competitors pricing policy is affected by the new volume situation
Slide 25: H+H Q&A
H+H Q&A
H+H International — Investor Presentation (October 2015) on 6ix