H+h International A/s · OMXCOP:HH
H+h International A/s — FY2021 Earnings Presentation
32 slides from H+h International A/s's earnings presentation, Mar 4, 2022
Slide 1: 2021 Annual Report | Webcast presentation
2021 Annual Report | Webcast presentation 1
Slide 2: Introduction
Introduction Contents 2021 highlights Science Based Targets Strategy update Market update Financial performance Share buy-back programme 2022 financial outlook Closing remarks Questions and answers H+H is a Poriner ip Val) Sulcine across Europe H+H is a wall-building materials provider. The core act
Slide 3: Full-year 2021: strongest-ever annual results with solid organic growth and record earnings
Full-year 2021: strongest-ever annual results with solid organic growth and record earnings Selected financial figures Figures in DKKm unless otherwise stated. 2020 figures in brackets Organic growth EBIT® Profit after tax (-6%) (332) (251) Capital expenditures Free cash flow Financial gearing?) (13
Slide 4: Important strides made on our journey towards net-zero emissions
, rac Cee Important strides made on our journey towards net-zero emissions >) 2022 As the first manufacturer of AAC and CSU products, H+H committed to an ambitious @1.5°C climate target and had its plan verified by the Science Based Target initiative > PPCCCCPPOCLLOn @ DS rer oon 2030 We commit to r
Slide 5: Meeting the strong demand while consolidating our platform
Meeting the strong demand while consolidating our platform Current product portfolio Aircrete Calcium silicate Other wall-building materials ptimisati Central Western ° or fur Europe Explore acquisitive growth opportunities within new product segments through acquisitions The United and/or continued
Slide 6: Central Western Europe: consolidation efforts have paved the way for significant sales-price increases
Central Western Europe: consolidation efforts have paved the way for significant sales-price increases Market conditions and trends Germany: + Macroeconomic indicators point to favourable conditions for the German housing market in 2022, but there is an underlying risk of potential interest-rate inc
Slide 7: The United Kingdom: solid long-term prospects may support investments in capacity increases
The United Kingdom: solid long-term prospects may support investments in capacity increases Market conditions and trends + Macroeconomic indicators point to favourable conditions for the British housing market in 2022, but there is an underlying risk of potential interest-rate increases. + The Briti
Slide 8: Poland: favourable market conditions with high activity and strong demand has continued into 2022
Poland: favourable market conditions with high activity and strong demand has continued into 2022 Market conditions and trends + Following a very strong fourth quarter, macroeconomic indicators point to continued favourable conditions for the Polish housing market in 2022. + The strong demand seen i
Slide 9: Strong fourth quarter in especially the Nordics and Poland drove organic growth of 11%
Strong fourth quarter in especially the Nordics and Poland drove organic growth of 11% Revenue growth by market Consolidated revenue DKKm. Bubbles show revenue growth / organic growth DKKm MM 042019 MM Q42020 MM Q42021 414% / 411% 349 731 625 642 195 jgg 193 189 Central Western Europe United Kingdom
Slide 10: Full-year organic growth of 13% driven by strong customer demand across all regions
Full-year organic growth of 13% driven by strong customer demand across all regions and significantly higher sales volumes in the United Kingdom Revenue growth by market Consolidated revenue by quarter DKKm. Bubbles show revenue growth / organic growth DKKm M2019 M™ 2020 M™ 2021 mo mo MQ Ma <F14% /
Slide 11: Cost structure remains highly resilient with roughly 75% of costs base fully scalable to production
Cost structure remains highly resilient with roughly 75% of costs base fully scalable to production Breakdown of cost items Percent of total costs (2021) \ | AE | H+H
Slide 12: Solid margin defence despite inflationary pressure from increasing prices of raw materials
Solid margin defence despite inflationary pressure from increasing prices of raw materials Gross profit and gross profit margin EBITDA and EBITDA margin EBIT and EBIT margin DKKm and percent, respectively DKKm and percent, respectively DKKm and percent, respectively 31% 31% 30% ° 19% 19% 17% ° 13% 1
Slide 13: Firm pricing discipline, strong procurement efforts and solid hedging policies helped offset inflation
Firm pricing discipline, strong procurement efforts and solid hedging policies helped offset negative margin impact from inflation Gross profit and gross profit margin DKKm and percent, respectively 31% 877 31% 30% 19% 836 539 EBITDA and EBITDA margin DKKm and percent, respectively 20% 521 EBIT and
Slide 14: Strong free cash-flow generation driven by historical high earnings
Strong free cash-flow generation driven by historical high earnings Free cash flow, excl. acquisitions and divestments DKKm (189) Financial Taxespaid Other” Cash flowfrom Capital Free cash flow items, net operations expenditures, excl. M&A and excl. M&A and. divestments divestments H+H Be. CU MARS k
Slide 15: Net interest-bearing debt increases year-on-year as a result of share buy-back programmes and German acquisitions
Net interest-bearing debt increases year-on-year as a result of share buy-back programmes and German acquisitions Net interest-bearing debt (“NIBD”) DKKm 95 a a NIBD Freecash Acquisitionof IFRSI6 Purchase —_—NIBDof end-2020 flow.excl. enterprises. impact —of treasury acquiredand M&A shares divested
Slide 16: H+H to initiate share buy-back programme of up to DKK 150 million
H+H to initiate share buy-back programme of up to DKK 150 million Pro-forma financial gearing post share buy-back Share buy-back Programme Net interest-bearing debt to EBITDA before special items + The Board of Directors has decided to initiate a share buy-back programme of up to DKK 150 million, 2.
Slide 17: Financial outlook for 2022
Financial outlook for 2022 Organic growth EBIT 10% to 15% 420 to 500 (DKKm) Specific assumptions: + Exchange rates, primarily the British pound (“GBP”), the euro ("EUR") and the Polish zloty (“PLN”) remain at mid-February 2022 levels. + Inflation rates related to the cost of energy and raw-materials
Slide 18: Underlying market conditions support increase of long-term financial targets
Underlying market conditions support increase of long-term financial targets EBIT margin before special items Return on invested capital (ROIC) 2021: 14% 2021: 20% Financial gearing 2021: 0.6x Note: The Group's longterm financial targets reflects the ambition to maintain average minimum levels throu
Slide 19: H+H will leverage momentum from strong 2021 results and invest in the drivers of future growth
H+H will leverage momentum from strong 2021 results and invest in the drivers of future growth Strongest-ever full-year results driven by high market activity and strong customer demand. Successful implementation of double-digit sales-price increases point to further growth in 2022, but H+H remains
Slide 20: Questions and answers
Questions and answers
Slide 21: Supplementary information
Slide 22: H+H at a glance
H+H at a glance he im Founded in 1909 H+H was establishedin 1909 when Henrik Johan Henriksen and Waldemar Kahler established the joint stone and gravel-pit enterprise, 'Singelsforretningen Oma. ntly O20 {iP Employees 1,663 We have more than 1,600 employees working across eight different countries in
Slide 23: Summary of strategic targets
Summary of strategic targets Long-term targets Mid-term targets Short-term targets EBIT margin before special items Increased from 11% 14% in 2021 H+H commits to reducing absolute Scope 1 and 2 greenhouse-gas emissions by 46% by 2030 compared with 2019 Organic growth 10% to 15% 13% in 2021 EBIT befo
Slide 24: Performance highlights
Performance highlights Revenue and organic growth Gross profit and gross margin before special items EBIT and EBIT margin before special items. ross profit (MMM Revenue bike 94 REI Gross profit” bike % mm cairo bike % = Organic growth = Gross margint® 3500 24 1,000 40 — EBIT margin? 500 6 3,00 | 800
Slide 25: Five-year financial summary
Five-year financial summary Income statement (DKK million) 2021 2020 2019 2018. 2017 Financial ratios 2021 2020 2019 2018. 2017 Revenue 2,654 2840 2523 1,622 Organic growth (6%) 6% 18% 3% Gross profit before special items 836 877 690 452 Gross margin before special terns 31% 31% 27% 27% EBITDA befor
Slide 26: Business model
Business model Resources People We value our workforce, recognise the advantages of diversity and believe in the equality of people Raw materials Our products are made of sand, water and lime, with cement and aluminium added for aircrete Factory network We have created strong network of factories an
Slide 27: Equity story
Equity story Unique market conditions for growth Structural under-supply of housing Government commitment and stimuli programmes for housebuilding Demographic growth and changing housing needs Fragmented markets with room for consolidation through acquisitions + High entry barriers for new competito
Slide 28: Consolidated income statement
Consolidated income statement Income statement (DKK million) Revenue Cost of goods sold Gross profit before special items Sales costs Administrative costs Other operating income and costs. net EBITDA before special items Depreciation, amortisation and impairment losses EBIT before special items Spec
Slide 29: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income Statement of comprehensive income (DKK million) Profit for the period Items that may be reclassified subsequently to profit or loss: Foreign exchange adjustments, foreign entities Items that will not be reclassified subsequently to profit: Actuarial gai
Slide 30: Consolidated balance sheet
Consolidated balance sheet Assets (DKK million) 30 Dec. 2021 31 Dec. 2020 Equity and liabilities (DKK million) 30 Dec. 2021 31 Dec. 2020 Goodwill ail Share capital 180 Customer relations 244 Translation reserve (147) Other intangible assets 14 Retained earnings 1,405 Intangible assets 469 Equity att
Slide 31: Consolidated cash flow statement
Consolidated cash flow statement Cash flow statement (DKK million) 2021 2020 Operating profit (loss) 332 Change in borrowings Financial income, received 3 Debt from acquired enterprises Financial items, paid (23) Change in lease liabilities Depreciation and amortisation 189 Dividend to non-controlli
Slide 32: For further information, please contact
For further information, please contact Andreas Holkjzer Head of Investor Relations and Treasury +45 24 48 03 67 aho@HplusH.com H+H International A/S Lautrupsgade 7, 5th Floor 2100 Copenhagen © Denmark +45 35 270200 info@hplush.com www.hplush.com