H+h International A/s · OMXCOP:HH
H+h International A/s — Q3 2018 Earnings Presentation
23 slides from H+h International A/s's earnings presentation, Nov 14, 2018
Slide 1: Investor presentation Q3 2018
Investor presentation Q3 2018 14 November 2018
Slide 2: Introduction
Investor presentation, Q3 2018 14 November 2018 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 influencing the activities
Slide 3: Highlights
Investor presentation, Q3 2018 14 November 2018 3 Highlights EBITDA • DKK 143 million in the third quarter of • Organic growth of 21% in the third Organic quarter of 2018 2018 against DKK 71 million last year before special • DKK 300 million year-to-date against growth • Organic growth of 15% year-t
Slide 4: Financial performance
Investor presentation, Q3 2018 14 November 2018 4 Financial performance Q3 Q1-Q3 DKK million 2018 2017 Variance 2018 2017 Variance Actual 720 430 67% 1 863 1 252 49% Revenue Organic 520 430 21% 1 434 1 252 15% Gross margin* 28% 27% 1% 26% 26% 0% Before special items 143 71 72 300 181 119 EBITDA Afte
Slide 5: Outlook 2018
Investor presentation, Q3 2018 14 November 2018 5 Outlook 2018 – updated for organic growth, EBITDA and investments Outlook 2018 Specific assumptions for outlook 2018 • Growth before acquisitions and measured in local currencies is • Continuous economic growth in our geographical footprint expected
Slide 6: Long-term trends
Investor presentation, Q3 2018 14 November 2018 6 Long-term trends Long-term financial targets Long-term financial performance EBIT margin 15% 10% 5% 0% 2013 2014 2015 2016 2017 2018 Return on invested capital (ROIC) EBIT MARGIN Min. 11% 20% (Operating margin before special items) 15% 10% 5% ROIC Mi
Slide 7: External business drivers
Investor presentation, Q3 2018 14 November 2018 7 External business drivers • One of the biggest barriers in the • Negotiation is in process Labour industry is lack of skilled workers Brexit force capping building capacity and impacting salary levels for blue collar workers • Formal deadline is 29 M
Slide 8: Western European segment
Investor presentation, Q3 2018 14 November 2018 8 Western European segment Q3 Q1-Q3 DKK million 2018 2017 Variance 2018 2017 Variance Actual 511 319 60% 1 335 943 42% Revenue Organic 368 319 16% 1 015 943 8% Before special items 96 60 36 210 167 43 EBITDA After special items 84 56 28 179 152 27 Inve
Slide 9: Eastern European segment
Investor presentation, Q3 2018 14 November 2018 9 Eastern European segment Q3 Q1-Q3 DKK million 2018 2017 Variance 2018 2017 Variance Actual 209 111 88% 528 309 71% Revenue Organic 151 111 36% 420 309 36% Before special items 56 21 35 119 45 74 EBITDA After special items 55 20 35 125 40 85 Investmen
Slide 10: Q&A
Investor presentation, Q3 2018 14 November 2018 10 Q&A
Slide 11: Thank you
Investor presentation, Q3 2018 14 November 2018 11 Thank you H+H International A/S Lautrupsgade 7, 6th Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 info@hplush.com www.hplush.com
Slide 12: Appendices
Investor presentation, Q3 2018 14 November 2018 12 Appendices
Slide 13: Geographical footprint
Investor presentation, Q3 2018 14 November 2018 13 Geographical footprint
Slide 14: External growth drivers Risk factors
Investor presentation, Q3 2018 14 November 2018 14 External growth drivers Risk factors Den fra årsrapporten
Slide 15: The business model
Investor presentation, Q3 2018 14 November 2018 15 The business model
Slide 16: Revenue allocation 2017
Investor presentation, Q3 2018 14 November 2018 16 Revenue allocation 2017 5% 25% UK 20% Continental Western Europe 43% CWE Western Europe Eastern Europe Poland Russia 75% 32%
Slide 17: EBITDA and EBIT margin development and EBITDA allocation 2017
Investor presentation, Q3 2018 14 November 2018 17 EBITDA and EBIT margin development and EBITDA allocation 2017 EBITDA EBIT % (DKK million) 300 12 22% 10 200 8 Western Europe 6 Eastern Europe 100 4 78% 2 0 0 2011 2012 2013 2014 2015 2016 2017
Slide 18: Non-current asset allocation as of 31 December 2017
Investor presentation, Q3 2018 14 November 2018 18 Non-current asset allocation as of 31 December 2017 13% 23% UK Continental Western Europe 47% CWE Western Europe 53% Eastern Europe Poland 35% Russia 29%
Slide 19: Net interest-bearing debt development and allocation as of 31 December 2017
Investor presentation, Q3 2018 14 November 2018 19 Net interest-bearing debt development and allocation as of 31 December 2017 Net interest-bearing debt Gearing (DKK million) 800 10 6% 4% 12% GBP EUR 400 5 PLN DKK 78% 0 0 2011 2012 2013 2014 2015 2016 2017
Slide 20: Strategic rationale for the CSU acquisitions
Investor presentation, Q3 2018 14 November 2018 20 Strategic rationale for the CSU acquisitions • Create a more balanced geographical footprint • Expand the product offering, mainly within residential high-rise, becoming the second largest European player within CSU • Harvest synergies with the airc
Slide 21: Acquisition of HDKS
Investor presentation, Q3 2018 14 November 2018 21 Acquisition of HDKS • HDKS is the second largest producer of CSU in Germany and operates seven factories. Further, HDKS is present on the Swiss market and has one factory in Switzerland. • The acquisition was closed 28 February 2018. • HDKS had reve
Slide 22: Acquisition of Grupa Silikaty
Investor presentation, Q3 2018 14 November 2018 22 Acquisition of Grupa Silikaty • Grupa Silikaty is the second largest producer of CSU in Poland and operates seven factories. • The acquisition was closed 4 April 2018. • Grupa Silikaty had estimated revenue in 2016 of DKK 157 million and EBITDA of D
Slide 23: Unique opportunity to participate in market restructuring
Investor presentation, Q3 2018 14 November 2018 23 Unique opportunity to participate in market restructuring H+H is in a unique situation Geographical focus • Overcapacity in the German aircrete market • Proven track record in successful restructuring • Target list includes • Companies suffering fro