H+h International A/s · OMXCOP:HH
H+h International A/s — Q3 2023 Earnings Presentation
15 slides from H+h International A/s's earnings presentation, Nov 17, 2023
Slide 1: Q3 2023 Financial results — Conference Call
H+H International A/S Q3 2023 Financial results — Conference Call 17 November 2023 PARTNERS IN WALL BUILDING a K os ~*~ _
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of H+H International A/S, may cause actual developments and results to differ materially from the expecta
Slide 3: Introduction
Introduction Q3 Summary Market development Business improvement program Financial performance & Outlook Closing remarks Question and answers.
Slide 4: Third quarter in line with our expectations
Third quarter in line with our expectations Selected financial figures Figures in DKKm unless otherwise stated. Q3 2022 figures in brackets Organic growth EBITDA margin (7%) (23%) (17%) Free cash flow Financial gearing EBIT margin” (36) (0.5x) (12%) (1) Before special items Q3 2023 key takeaways Con
Slide 5: Market environment
Market environment H+H consolidated volumes by quarter Building permits and interest rates Thousand cubic meters 1182 27% 800 8% 1.087 1018 | I ; Tf : 12022 © Q22022, 932022 = 42022-12023.) 022023» Q3 2023 Key development 0% Permits have returned to 2008 levels, but interest rate changes happened wi
Slide 6: Group business improvement program to drive efficiency of our operations
Group business improvement program to drive efficiency of our operations Navigating the downturn Key drivers going forward Q1 2023 Permanently closed 5 plants across the network redirecting volumes to bigger and more efficient plants and adjusted our operations workforce by around 20% 2024 and beyon
Slide 7: Taking out further capacity to drive efficiency and stock decrease
Taking out further capacity to drive efficiency and stock decrease = Temporarily close production in three AAC factories and one CSU factory: One AAC factory in the Northern UK One CSU factory in South PL (transfer volumes to nearby factory) One AAC factory in the North DE One AAC factory in South D
Slide 8: Challenging conditions are causing a decline in revenue across all our markets
Challenging conditions are causing a decline in revenue across all our markets Consolidated revenue by quarter Quarterly revenue by region ; DKKm. Revenue growth (organic growth) DKKm. Revenue growth (organic growth) 1™ 932022 Ml Q3 2023 -26% (-27%), “24% (-24%), 810 731 699 | : Q3 2022 Q4 2022 Q1 2
Slide 9: Gross Profit Gross Margin (%) Adj. Gross Margin (%)
Gross Profit Gross Margin (%) Adj. Gross Margin (%) ▪ ▪ ▪ ▪ ▪ ▪ 9
Slide 10: Special items and gas impact
Special items and gas impact Special items Gas used in production Impairment third quarter, gas = Asaresult of the closure of plants, an impairment loss summer 2022 led to incr of DKK 99 million was acknowledged for production contracts ar equipment in the first nine months nd inc Restructuring cost
Slide 11: Positive inflow from operating cash flow
Positive inflow from operating cash flow Net interest-bearing debt (NIBD) DKKm. NIBD CF operating © CAPEX Leasing FX and other NIBD 30/6 23 activities 30/9 23 = Net interest-bearing debt decreased from 30 June by DKK 31 million to a net cash position of DKK 844 million driven by positive operating c
Slide 12: Full year 2023 outlook narrowed
Full year 2023 outlook narrowed Organic growth EBIT before special items, mDKK (Previously -20% to -25%) (Previously 30 to 100) Specific assumptions: + Sales volumes expected to decrease around -35% + Exchange rates, primarily GBP, EUR and PLN remain at end-November 2023 levels 12
Slide 13: Key takeaways
Key takeaways Low building activity in line with expectations First results from business improvement program coming through, however, higher energy costs also impact earnings Next efficiency step initiated through temporary plant closures Carefully managing our cash position 13
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Slide 15: For further information, please contact
For further information, please contact Niclas Bo Kristensen Head of Investor Relations and Treasury nbk@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 15