H+h International A/s · OMXCOP:HH
H+h International A/s — Q1 2020 Earnings Presentation
26 slides from H+h International A/s's earnings presentation, May 15, 2020
Slide 1: Investor presentation Q1 2020
Investor presentation Q1 2020 15 May 2020 Investor presentation, Q1 2020 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: Satisfactory Q1 2020
Satisfactory Q1 2020 Q1 key highlights 2020 Market outlook • Limited impact by the Covid-19 outbreak • Very low visibility in the UK market • Favourable weather conditions • Trading continues on expected levels on • Pricing in line with expectations our other markets but low visibility for H2 Financ
Slide 4: Covid-19 actions and contingency planning
Covid-19 actions and contingency planning Secure health and safety of our employees • Enhanced safety precautions were implemented across all sites focusing on reducing contamination risk. • To date there have been no production impact directly linked to Safety contamination of Covid-19. first Safet
Slide 5: Current market situation - mid May 2020
Current market situation - mid May 2020 The UK market The German market The Polish Market • Lockdown caused closing of building • Lockdown did not impact building • Lockdown did not impact building sites and distribution centres from sites or distribution centres sites or distribution centres end of
Slide 6: Key figures Q1 2020
Key figures Q1 2020 Revenue EBITDA before special items Acquisitions and divestments EBIT margin (bsi) 12% 8% DKK million German acquisition: 130 DKK million 704 Closing of one AAC in last year January 2020 97 666 last year ROIC 21% 13% last year EBIT before special items last year Investments 85 Ca
Slide 7: Strong revenue growth in Q1 despite uncertain times
Strong revenue growth in Q1 despite uncertain times Total revenue, DKKm Organic growth of 2% +6% • Mainly driven by higher prices across all regions 770 779 666 704 • Favourable weather conditions had a positive impact across all our 625 markets Market development • Strong markets in Germany and Pol
Slide 8: Increased earnings and margin
Increased earnings and margin Earnings (bsi), DKKm Q1 2019 Q1 2020 EBIT (bsi) up by DKK 30 million driven by: Q1 2020 +34% • Strong operational excellence across all markets incl. 130 continuous improvements, purchasing initiatives and +55% 97 synergies from acquired companies 85 55 • Positive price
Slide 9: NIBD and financial gearing at low levels
NIBD and financial gearing at low levels 504 8 7 Cash flow from operating activities • Cash flow from operating activities up by DKK 29m 74 compared to Q1 2019, driven by higher earnings partly offset by change in working capital due to seasonal 407 21 4 fluctuations in trade receivables. 17 NIBD de
Slide 10: Financial highlights
Financial highlights Q1 DKK million 2020 2019 Variance Actual 704 666 6% Revenue Organic 682 666 2% Gross margin* 32% 27% 5% EBITDA* 130 97 33 EBIT* 85 55 30 EBIT margin* 12% 8% 4% Special items 0 0 0 Profit/loss before tax 80 49 31 Profit/loss after tax 64 39 25 Return on invested capital 21% 13% 8
Slide 11: Financial outlook suspended 24 March 2020
Financial outlook suspended 24 March 2020 H+H Group Initial financial Realised in Q1 Financial outlook 2020 2020 outlook 2020 Revenue -2 to 2% 2% Suspended EBIT DKK 300-360m DKK 85m Suspended CAPEX DKK 140-180m DKK 21m Suspended • On 24 March, H+H suspended the financial outlook for 2020 following m
Slide 12: Q&A
Q&A Investor presentation, Q1 2020 15 May 2020 12
Slide 13: 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, Q1 2020 15 May 2020 13
Slide 14: Appendices
Appendices Investor presentation, Q1 2020 15 May 2020 14
Slide 15: Revenue allocation Q1 2020
Revenue allocation Q1 2020 Product split revenue 32% Calcium silicate 68% Aircrete (CSU) (AAC) Gross profit split: CSU 27% / AAC 73% Revenue share 25% Revenue share 30% Revenue share 30% Strong market positions United Kingdom (31%) Germany (25%) Poland (27%) Other markets (15%) Sales and Administrat
Slide 16: Long term financial targets
Long term financial targets H+H expects to use free cash flow to develop the existing business and execute on the pipeline of strategic growth initiatives. EBIT Return on invested capital (ROIC) Financial gearing EBIT ROIC Net interest-bearing debt EBIT margin Adjusted ROIC Financial gearing 13% 20%
Slide 17: Performance Highlights
Performance Highlights Revenue and Profit Revenue Gross profit and gross margin EBIT and EBIT margin Revenue Gross profit EBIT Organic growth Gross margin EBIT margin 2,840 31% 13% Revenue in DKKm Gross margin before special items EBIT margin before special items EBIT in 2018 was affected by a one-o
Slide 18: Business model – We focus on adding value to our customers
Business model – We focus on adding value to our customers throughout the entire wall building process Quality Manufacturing Value-added Sales Diversified Market Quality products of nature’s own material Trusted partners in wall building Innovative product solutions for high-rise and low-rise Key ra
Slide 19: Equity story
Equity story 1. European market leading 2. Unique market conditions 3. M&A – Proven track record position in AAC and CSU products for growth of strategy execution Top 2 positions in all key markets Structural under-supply of housing Fragmented markets with room for market share gains and consolidati
Slide 20: Top six risks
Top six risks Investor presentation, Q1 2020 15 May 2020 20
Slide 21: Top six risks
Top six risks Investor presentation, Q1 2020 15 May 2020 21
Slide 22: 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 23: We partner to develop sustainable end-products
Planning Delivery Building Sales We partner to develop sustainable end-products At the end of the day, homes, flats, offices and other buildings need to be comfortable, safe and sustainable. Our wall building solutions have been specially developed to deliver futureproof results. An improved indoor
Slide 24: More than 100 years of experience
More than 100 years of experience European wall building provider as consolidator Turn around Normalisation and expansion H+H as a conglomerate 1909 1958 1962 1985 1998 2000 2005 2008 2009 2010 2011 2015 2018 2019 1937 2003 2017 Henriksen & W. Kähler – established joint gravel pit enterprise Focus o
Slide 25: H+H supports customers from the very early planning stages with a complete range
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, Q1 2020 15 May 2020 25
Slide 26: The new brand claim opens for further opportunities to expand the product portfolio into
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, Q1 2020 15 May 2020 26