H+h International A/s · OMXCOP:HH
H+h International A/s — Q3 2016 Earnings Presentation
22 slides from H+h International A/s's earnings presentation, Nov 18, 2016
Slide 1: Investor presentation Q1-Q3 2016
Investor presentation Q1-Q3 2016 18 November 2016
Slide 2: Introduction
Investor presentation Q1-Q3 2016 18 November 2016 2 Introduction Forward-looking statement Agenda The statements on the future in this presentation, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors • Highlights Q3 2016 influencing the
Slide 3: Highlights Q3 2016
Investor presentation Q1-Q3 2016 18 November 2016 3 Highlights Q3 2016 Organic • 4% organic growth in the third quarter. Price • Higher prices in all markets vs. last year. • Loss of volume in Germany as a growth • 8% organic growth YTD. increase consequence hereof • DKK 64 million in the third quar
Slide 4: Financial performance
Investor presentation Q1-Q3 2016 18 November 2016 4 Financial performance Q3 Q1 - Q3 DKK million 2016 2015 Variance 2016 2015 Variance Actual 439 460 (5%) 1.264 1.246 1% Revenue Organic 478 460 4% 1.351 1.246 8% Gross margin 26% 24% 2% 25% 24% 1% Before special items 64 63 1 166 141 25 EBITDA After
Slide 5: Outlook 2016 and long-term financial targets
Investor presentation Q1-Q3 2016 18 November 2016 5 Outlook 2016 and long-term financial targets Outlook Long-term DKK million Outlook Updated financial targets Organic growth 5-6% EBITDA * 190-210 Investments ~ 80 EBIT margin Min. 6-8% Return on invested capital Min. 12% * Before special items
Slide 6: Specific assumptions for outlook for 2016
Investor presentation Q1-Q3 2016 18 November 2016 6 Specific assumptions for outlook for 2016 • Economic growth of around a negative 2% to a positive 3.5% in our geographical footprint. • Energy and raw material prices rise higher than inflation from their mid- November 2016 levels. • The commercial
Slide 7: Other selected items
Investor presentation Q1-Q3 2016 18 November 2016 7 Other selected items • DKK 23 million in the third quarter against DKK 14 million last year. Credit • Committed facility in Danske Bank until CAPEX • DKK 38 million for first three quarters facility 2018. against DKK 40 million last year. Asset • D
Slide 8: Western European segment
Investor presentation Q1-Q3 2016 18 November 2016 8 Western European segment Q3 Q1 - Q3 DKK million 2016 2015 Variance 2016 2015 Variance Actual 325 357 (9%) 980 966 1% Revenue Organic 360 357 1% 1.047 966 8% Before special items 54 58 (4) 160 147 13 EBITDA After special items 54 58 (4) 160 142 18 I
Slide 9: Eastern European segment
Investor presentation Q1-Q3 2016 18 November 2016 9 Eastern European segment Q3 Q1 - Q3 DKK million 2016 2015 Variance 2016 2015 Variance Actual 113 103 10% 284 280 2% Revenue Organic 118 103 16% 305 280 9% Before special items 20 12 8 30 19 11 EBITDA After special items 19 12 7 27 55 (28) Investmen
Slide 10: Q&A
Investor presentation Q1-Q3 2016 18 November 2016 10 Q&A
Slide 11: Thank you
Investor presentation Q1-Q3 2016 18 November 2016 11 Thank you H+H International A/S Dampfærgevej 3, 3rd Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 info@hplush.com www.hplush.com
Slide 12: Appendices
Investor presentation Q1-Q3 2016 18 November 2016 12 Appendices
Slide 13: Geographical footprint
Investor presentation Q1-Q3 2016 18 November 2016 13 Geographical footprint Production facility Sales and administration
Slide 14: Strategy and external growth drivers
Investor presentation Q1-Q3 2016 18 November 2016 14 Strategy and external growth drivers MISSION VISION To supply value-added To be number one innovative aircrete aircrete supplier in our • GDP growth solutions to buildings geographical footprint. through profitable • Inflation partnerships with di
Slide 15: Commercial approach
Investor presentation Q1-Q3 2016 18 November 2016 15 Commercial approach Quality aircrete Trusted partner - is the foundation of - is our reputation in our company the industry Build with ease House Construction Distributors builders companies Innovative solutions - are how we create results
Slide 16: Manufacturing process
Investor presentation Q1-Q3 2016 18 November 2016 16 Manufacturing process The mixture is poured into moulds Cement Sand / Lime PFA powder Water Alu Rests Transfer and 6-8 hours wire-cut Autoclaving Mixer
Slide 17: Revenue allocation 2015
Investor presentation Q1-Q3 2016 18 November 2016 17 Revenue allocation 2015 6% 7% 22% UK 6% Germany Western Europe Poland 49% 15% Russia Eastern Europe Denmark Other 78% 17%
Slide 18: EBITDA and EBIT margin development and EBITDA allocation 2015
Investor presentation Q1-Q3 2016 18 November 2016 18 EBITDA and EBIT margin development and EBITDA allocation 2015 EBITDA EBIT % (DKK million) 200 6 10% 5 4 Western Europe 100 3 Eastern Europe 2 1 90% 0 0 2011 2012 2013 2014 2015
Slide 19: Non-current asset allocation as of December 2015
Investor presentation Q1-Q3 2016 18 November 2016 19 Non-current asset allocation as of 31 December 2015 14% 18% UK Western Europe Germany 51% 49% Eastern Europe Poland Russia 37% 31%
Slide 20: Net interest-bearing debt development and allocation as of 31 December 2015
Investor presentation Q1-Q3 2016 18 November 2016 20 Net interest-bearing debt development and allocation as of 31 December 2015 Net interest-bearing debt Gearing (DKK million) 800 10 5% 5% 13% GBP EUR 400 5 PLN DKK 77% 0 0 2011 2012 2013 2014 2015
Slide 21: Update on the UK situation
Investor presentation Q1-Q3 2016 18 November 2016 21 Update on the UK GBP/DKK currency chart There is both positive and situation negative lead indicators in the latest public data and the public opinion. • Sales of aircrete not impacted by the result of referendum to leave Consensus is that it is t
Slide 22: Pulverised fuel ash (PFA)
Investor presentation Q1-Q3 2016 18 November 2016 22 Pulverised fuel ash (PFA) • Sourcing of PFA has been reviewed and optimised. • Use of stockpiled PFA leads to lower consistency in • The product can be used as raw manufacturing output. material in aircrete production and • Replacing PFA with sand