H+h International A/s · OMXCOP:HH
H+h International A/s — Q1 2021 Earnings Presentation
26 slides from H+h International A/s's earnings presentation, May 17, 2021
Slide 1: Q1 2021 Interim Financial Report | Webcast presentation
Q1 2021 Interim Financial Report | Webcast presentation 1
Slide 2: Introduction: H+H is a partner in wall building across Europe
Introduction H+H is a partner in wall building across Europe H+H is a wall-building materials provider. The core activity is the 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 fo
Slide 3: Q1 2021: solid UK activity offset by strongest weather impact in a decade
Q1 2021: solid UK activity offset by strongest weather impact in a decade Q1 2021 selected financial figures Figures in DKKm unless otherwise stated. Q1 2020 figures in brackets Organic growth EBITDA® EBIT® -9% 109 64 (2%) (131) (85) <n) As aie Free cash flow Return on Invested Capital Financial gea
Slide 4: Harsh winter weather cause 11% decline in sales volumes
Harsh winter weather cause 11% decline in sales volumes Sales volumes were lower due to the strongest weather impact in a decade— especially in Poland and Germany. The year-on-year decline was partly offset by higher sales volumes in the UK, driven by strong market activity supported by Government s
Slide 5: Central Western Europe: markets quickly recovering from Q1 slow-down
Central Western Europe: markets quickly recovering from Q1 slow-down with good activity in Germany and the Nordics Market conditions and trends Germany: * Construction market remains relatively unaffected by COVID-19 + Significant lack of housing space from a growing number of smaller households and
Slide 6: United Kingdom: strong forward sales indicate building activity returning to 2019-levels
United Kingdom: strong forward sales indicate building activity returning to 2019-levels already in 2021 Market conditions and trends _ * The British Government remains committed to increasing the housing output to 300,000 dwellings annually, but roadmap remains unclear * Housebuilders responding we
Slide 7: Poland: increases in permits and started buildings indicate good medium-term demand outlook
Poland: increases in permits and started buildings indicate good medium-term demand outlook Market conditions and trends Q1 2021 weather impact considered a phasing effect, with activity picking up significantly as weather conditions improve The number of permits increased 42% in Q1 2021 relative to
Slide 8: Lower earnings year-on-year a reflection of strong Q1 2020 performance
Lower earnings year-on-year a reflection of strong Q1 2020 performance Revenue 642 704 (9%) Cost of goods sold (454) (482) (6%) Gross profit before special items 188 222 (15%) SG&A and other operating income, net (79) (92) (14%) EBITDA before special items 109 130 (16%) Depreciation, amortisations a
Slide 9: A solid quarter in the UK outweighed by negative impact from harsh winter weather
A solid quarter in the UK outweighed by negative impact from harsh winter weather in Germany and Poland Revenue growth by market DKKm. Bubbles show revenue growth (organic growth) 8% C16 1.2020 317 i Q1 2021 293 +10% (12% =P =P CWE Poland Consolidated revenue by quarter DKKm 9% (-9%) > 704 712 | 642
Slide 10: Higher input costs and lower volumes from production stand-stills impacted Q1 2021 earnings
Higher input costs and lower volumes from production stand-stills impacted Q1 2021 earnings Gross profit and gross profit margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm DKKm DKKm 32% 29% o2 12% e 10% ° - | = | 12020 Qu2021 12020 qu2021 12020 qu2021 HM Gross profit @ Gross profit margin MB
Slide 11: Net interest-bearing debt increases in Q1 due to seasonal NWC-movements and share buy-back
Net interest-bearing debt increases in Q1 due to seasonal NWC-movements and share buy-back Net interest-bearing debt (“NIBD”) Bow @) 5——-—- 3 20 2 sb NIBD Free cash flow IFRS 16 impact Purchase of Other, incl. FX NIBD 31 December treasury shares. 31 March 2021 2020 (1) Of the total net interest-bear
Slide 12: Update on share buy-back programme
Update on share buy-back programme + Asof 31 March 2021, a total of 85,300 shares, corresponding to 0.47% on the total share capital in H+H, had been bought back under the programme for a total purchase price of DKK 13 million * Acquisitive growth remains the key strategic focus for H+H, but given t
Slide 13: Financial outlook for 2021 upgraded based on solid market conditions
Financial outlook for 2021 upgraded based on solid market conditions Organic growth EBIT before special items 2% to 7% 330 to 390 (Previously 0% to 5%) DKKm (Previously DKK 310-370m) Specific assumptions: * The COVID-19 pandemic is not expected to have any material impact on construction activity le
Slide 14: H+H joins UN Global Compact
H+H joins UN Global Compact Sustainability update + Inline with previous communication, H+H has now joined the UN Global Compact initiative + Inaddition, H+H has now commenced the process of having its net-zero emissions target verified under the Science Based Target initiative + On target to delive
Slide 15: Summary: 2021 financial guidance upgraded based on solid market conditions
Summary: 2021 financial guidance upgraded based on solid market conditions * Strong result by the UK and Nordic businesses, but more than offset by particularly harsh winter weather in Central Western Europe and Poland * Solid demand outlook across all three markets, especially in the UK with strong
Slide 16: Q&A
Q&A
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Slide 18: Supplementary information
Supplementary information
Slide 19: H+H at a glance
H+H at a glance H+H has 29 factories in Northern and ‘al annual four million Central Europe with a output of approxim cubic metre: vall-building materials. The 2020 financial highlights Revenue in DKK million 2,654 EBIT in DKK million ‘oup has a leading position in mist of its markets. United Kingdo
Slide 20: Five-year financial summary
Five-year financial summary Revenue and organic growth Gross profit and gross margin EBIT and EBIT margin I Revenue Dake % I Gross profit Dake % mci Dake % — Organic growth 7 — Gross margin , . 3,000 24 1,000 40 — EBIT margin 400 6 2,500 6 800 30 300 e 2,000 600 9 1.500 8 20 200 400 6 1,000 . 2020 s
Slide 21: Business model—we focus on adding value to our customers throughout the entire wall-building process
Business model—we focus on adding value to our customers throughout the entire wall-building process Value-added Sales ——_——> Diversified Market Quality Manufacturing Modern and carbon-friendly products Trusted partners in Innovative product solutions for wall building high-rise and low-rise 1H) Par
Slide 22: Equity story
Equity story H+H remains in a unique position for continued growth due to attractive market fundamentals, a differentiated market approach, sustainable products, and a proven track record of strategy execution Unique market conditions for growth vo + Structural under-supply of housing + Governmental
Slide 23: Consolidated income statement and statement of comprehensive income
Consolidated income statement and statement of comprehensive income Income statement (DKK million) 912021 912020 FY 2020 Statement of comprehensive income (DKK million) 912021 912020 FY 2020 Fei 642 704 2,654 Profit for the period 49 64 251 Cost of goods sold (454) (482) 2.818) Gross profit before s
Slide 24: Consolidated balance sheet
Consolidated balance sheet Assets (DKK million) 12021 FY 2020 912020 Equity and liabilities (DKK million) 12021 FY 2020 912020 Non-current assets Goodwill au 2m 202 180 180 180 Other intangible assets 252 258 289 Retained earnings 1455 1405 1341 Property, plant and equipment 1534 1538 1572 Other res
Slide 25: Consolidated cash flow statement
Consolidated cash flow statement Cash flow statement (DKK milion) qu20ai 12020 FY 2020 Operating profit (loss) 4 85 Financial income received 1 1 3 Financial items, paid (3) (23) 45 189 Depreciation, amortisation and impairment losses Change in working capital and other Change in provisions and pens
Slide 26: For further information, please contact
For further information, please contact Andreas Holkjaer Investor Relations and Treasury Manager +45 24 48.03 67 aho@HplusH.com H+H International A/S Lautrupsgade 7, 5th Floor 2100 Copenhagen © Denmark +45 35 27 02 00 info@hplush.com www.hplush.com