H+h International A/s · OMXCOP:HH
H+h International A/s — Q2 2019 Earnings Presentation
24 slides from H+h International A/s's earnings presentation, Aug 14, 2019
Slide 1: Investor presentation Q2 2019
Investor presentation Q2 2019 14 August 2019 Investor presentation, Q2 2019 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: Financial highlights
Financial highlights Q2 Q1 - Q2 DKK million 2019 2018 variance 2019 2018 variance Actual 770 709 9% 1 436 1 143 26% Revenue Organic 757 709 7% 1 287 1 143 13% Gross margin* 31% 26% 5% 29% 24% 5% Before special items 156 117 39 253 157 96 EBITDA After special items 156 110 46 253 134 119 Before speci
Slide 4: Updated Outlook 2019
Updated Outlook 2019 • Revenue growth before acquisitions and measured in local currencies is expected to be around 8% (previously around 7%). • EBITDA before special items is expected to be DKK 510-550 million (previously DKK 460-510 million). • EBIT before special items is expected to be DKK 330-3
Slide 5: Western European segment
Western European segment Q2 Q1 – Q2 DKK million 2019 2018 variance 2019 2018 variance Actual 536 517 4% 1 000 824 21% Revenue Organic 524 517 1% 913 824 11% Before special items 107 86 21 173 114 59 EBITDA After special items 107 77 30 173 94 79 Before special items 74 40 34 108 40 68 EBIT After spe
Slide 6: Reduced dependency on the UK – Brexit impact unpredictable
Reduced dependency on the UK – Brexit impact unpredictable Revenue in the UK as share of Group revenue 2017 2018 32% 43% 57% 68% UK share OtherThe UK markets Other UKmarkets share Other markets Housebuilders registered the highest number of new homes for 12 years between April and June, with the ren
Slide 7: Eastern European segment
Eastern European segment Q2 Q1 – Q2 DKK million 2019 2018 variance 2019 2018 variance Actual 234 192 22% 436 319 37% Revenue Organic 232 192 21% 375 319 18% Before special items 68 41 27 117 63 54 EBITDA After special items 68 49 19 117 70 47 Before special items 59 38 21 99 51 48 EBIT After special
Slide 8: Dialogue with potential buyers of H+H's Russian business
Dialogue with potential buyers of H+H’s Russian business Potential sale in line with the strategy from the Annual Report 2018 • H+H Russia LLC that has a modern aircrete factory producing high quality products and a strong and committed organization. • H+H will pursue opportunities to change the str
Slide 9: Cash flow
Cash flow Cash flow first half of 2019 adjusted for IFRS 16 Announced capital structure in Annual Report 2019 • For the time being, H+H expects to use the free cash flow to develop the existing business and pursue value-adding investments in the form of acquisitions, within the debt gearing indicate
Slide 10: Operational improvements in acquired businesses
Operational improvements in acquired businesses Cash flow adjusted for IFRS 16 Better control of autoclaving processes (higher New dosing system (lower raw materials New truck scale (better control of raw materials production capacity and reducing energy consumption). delivered). consumption). Inves
Slide 11: Q&A
Q&A Investor presentation, Q2 2019 14 August 2019 11
Slide 12: 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, Q2 2019 14 August 2019 12
Slide 13: Appendices
Appendices Investor presentation, Q2 2019 14 August 2019 13
Slide 14: Geographical footprint
Geographical footprint Sales and admin Aircrete factories Calcium silicate factories Investor presentation, Q2 2019 14 August 2019 14
Slide 15: External growth drivers
External growth drivers Macroeconomic Capacity utilisation Demography • GDP growth • Capacity utilisation in the • Urbanisation aircrete and calcium- • Inflation silicate industry • Housing stock • Governmental stimuli • Capacity utilisation in the • Demand for of housebuilding wall building materia
Slide 16: Risk factors
Risk factors Probability/impact Risk 2017 2018 Scenario Action Market With significant fixed costs, demand has a noticeable effect on H+H’s financial Monitoring economic and political developments in the various markets and effective sales performance. Developments in the global economy and especial
Slide 17: A powerful platform for continuing the strong development
A powerful platform for continuing the strong development Strong market position Track record Markets set for in successful growth restructuring Positive financial development Focused strategy Continuous has improved the operational flexibility of the improvements business Cyclicality, however geogr
Slide 18: The business model
The business model Investor presentation, Q2 2019 14 August 2019 18
Slide 19: Financial results
Financial results Revenue allocation 2018 EBITDA and EBIT margin development Financial gearing DKK million EBIT margin (%) EBITDA (DKK million) % DKK million Gearing Net interest-bearing debt Gearing 500 12 600 6 Western Europe, 72% Eastern Europe, 28% 400 10 400 4 300 8 200 6 200 2 UK, 32% 100 4 CW
Slide 20: Long-term trends
Long-term trends Long-term financial targets Long-term financial performance % Realised Target (range) Target (floor) 11% EBIT margin EBIT margin 15 (Operating margin before 12 9 special items) 6 At least 3 0 2014 2015 2016 2017 2018 % 20 12% ROIC ROIC 15 (Return on invested 10 capital) 5 At least 0
Slide 21: Delivering on the strategy
Delivering on the strategy Reda CSU factory • Investment for a CSU production line on current AAC site in Reda near Gdansk, Poland, has been approved. • Best location compared to competitors from a proximity perspective. • Low cost investment due to co-location with existing production facility. • T
Slide 22: 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, Q2 2019 14 August 2019 22
Slide 23: 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, Q2 2019 14 August 2019 23
Slide 24: More than 100 years of experience
More than 100 years of experience Investor presentation, Q2 2019 14 August 2019 24