H+h International A/s · OMXCOP:HH
H+h International A/s — Q1 2015 Earnings Presentation
20 slides from H+h International A/s's earnings presentation, May 20, 2015
Slide 1: Investor presentation Q1 2015
Investor presentation Q1 2015 20 May 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 • Highlights Q1 2015 • Financial performance • Grupa Prefabet • Balance sheet items • Outlook for 2015 • Q&A
Slide 4: Highlights Q1 2015
Highlights Q1 2015 H+H
Slide 5: Highlights Q1 2015
5 Highlights Q1 2015 • Organic growth in the first quarter was 8.7% (adjusted for acquisitions and measured in local currency) • Acquisition of Grupa Prefabet concluded • The financial figures are impacted by the Grupa Prefabet transaction and the integration plan is running to schedule • A new issu
Slide 6: Financial performance Q1 2015
Financial performance Q1 2015
Slide 7: Group financial performance
7 Group financial performance Q1 2015 • Revenue up 18.5%, organic growth of 8.7% on Q1 2014 • Gross margin in first quarter was 20.9%, against 18.9% in Q1 2014. Average selling prices were higher than last year but partly offset by higher indirect production costs • EBITDA was DKK 19 million before
Slide 8: Segments – Western Europe
8 Segments – Western Europe Q1 2015 • Revenue up 16.0% on Q1 2014, organic growth was 8.7%. Revenue increased compared with Q1 2014 in all markets but the Benelux countries • EBITDA was DKK 30.1 million before special items against DKK 17.7 million in Q1 2014 • Profit before tax of DKK 12.0 million
Slide 9: Segments – Eastern Europe
9 Segments – Eastern Europe Q1 2015 • Revenue up 28.1% on Q1 2014, organic growth was 8.8% • EBITDA was a negative DKK 4.2 million before special items against a negative DKK 2.6 million in Q1 2014 • Profit from special items was DKK 36 million • Profit before tax of DKK 19.1 million, against a loss
Slide 10: Grupa Prefabet
Grupa Prefabet
Slide 11: Acquisition of Grupa Prefabet
11 Acquisition of Grupa Prefabet • The Polish aircrete market is the biggest in Europe but activity levels have dropped significantly in recent years due to the economic slowdown, leading to extensive overcapacity, very low selling prices and, in consequence, a lack of profitability among producers
Slide 12: Integration of Grupa Prefabet
12 Integration of Grupa Prefabet • Integration plan is in progress and running to schedule • Redundancies at the level of 200 employees and higher sourcing concentration will contribute to harvest synergies • Integration costs of DKK 20 million recognised as special items • EBITDA before special ite
Slide 13: Balance sheet items
Balance sheet items
Slide 14: Free cash flow and investments
14 Free cash flow and investments • Free cash flow was a negative DKK 155 million, against a negative DKK 75 million in Q1 2014. • The ratio of net working capital to sales increased from 9.6% on 31 March 2014 to 10.3% on 31 March 2015, mainly driven by higher inventories • Investments of DKK 16 mil
Slide 15: Net interest-bearing debt and equity
15 Net interest-bearing debt and equity • Net interest-bearing debt was DKK 643 million at 31 March 2015, up DKK 14 million on 31 March 2014 • Credit facility of DKK 712 million with Danske Bank, committed until 15 February 2018. H+H will continue to be dependent on debt financing the coming years •
Slide 16: Outlook for 2015
Outlook for 2015
Slide 17: Outlook for 2015
17 Outlook for 2015 We reiterate our outlook for 2015 • Organic revenue growth is expected to be 6-8% • EBITDA before special items is expected to be DKK 150-170 million • EBIT margin of 3-4% • Investments excluding acquisitions and divestments are expected to be DKK 60 million, including the DKK 20
Slide 18: Comments to outlook for 2015
18 Comments to outlook for 2015 The expectations for H+H’s financial performance in 2015 are based partly on the following specific assumptions: • Economic growth of around 0-3% in our geographical footprint • The operational excellence programme continues and reduces production costs further • Exch
Slide 19: Long-term financial targets
19 Long-term financial targets
Slide 20: H+H Q&A
H+H Q&A