H+h International A/s · OMXCOP:HH
H+h International A/s — Q1 2018 Earnings Presentation
24 slides from H+h International A/s's earnings presentation, May 17, 2018
Slide 1: Investor presentation Q1 2018
Investor presentation Q1 2018 17 May 2018
Slide 2: Introduction
Investor presentation, Q1 2018 17 May 2018 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 influencing the activities of t
Slide 3: Highlights
Investor presentation, Q1 2018 17 May 2018 3 Highlights • DKK 40 million in the first quarter • Organic growth of 5% in the first quarter Organic against DKK 37 million last year • Extreme weather conditions in markets EBITDA* growth in the Western European segment • Adverse impact from the planned
Slide 4: Acquisition of HDKS
Investor presentation, Q1 2018 17 May 2018 4 Acquisition of HDKS • HDKS is the second largest producer of CSU in Germany and operates seven factories. Further, HDKS is present on the Swiss market and has one factory in Switzerland. • The acquisition was closed 28 February 2018. • HDKS had revenue in
Slide 5: Acquisition of Grupa Silikaty
Investor presentation, Q1 2018 17 May 2018 5 Acquisition of Grupa Silikaty • Grupa Silikaty is the second largest producer of CSU in Poland and operates seven factories. • The acquisition was closed 4 April 2018. • Grupa Silikaty had estimated revenue in 2016 of DKK 157 million and EBITDA of DKK 11
Slide 6: Financial performance
Investor presentation, Q1 2018 17 May 2018 6 Financial performance Q1 DKK million 2018 2017 Variance Actual 434 377 15% Revenue Organic 394 377 5% Gross margin* 22% 23% (1%) Before special items 40 37 3 EBITDA After special items 24 32 (8) Before special items 3% 5% (2%) EBIT margin After special it
Slide 7: Outlook 2018 – re-iterated
Investor presentation, Q1 2018 17 May 2018 7 Outlook 2018 – re-iterated Outlook 2018 Specific assumptions for outlook 2018 • Growth before acquisitions and measured in local currencies is • Continuous economic growth in our geographical footprint expected to be around 5% • The commercial and operati
Slide 8: Long-term trends
Investor presentation, Q1 2018 17 May 2018 8 Long-term trends Long-term financial targets Long-term financial performance EBIT margin 15% 10% 5% 0% 2013 2014 2015 2016 2017 2018 Return on invested capital (ROIC) EBIT MARGIN Min. 11% 20% (Operating margin before special items) 15% 10% Min. xx% 5% ROI
Slide 9: Other selected items
Investor presentation, Q1 2018 17 May 2018 9 Other selected items • DKK 7 million related to import of Special products to the UK PPA, • Goodwill from HDKS of DKK 133 million items • DKK 9 million related to acquisition and HDKS • Deferred tax liability from goodwill integration costs • Actuarial ga
Slide 10: Western European segment
Investor presentation, Q1 2018 17 May 2018 10 Western European segment Q1 DKK million 2018 2017 Variance Actual 307 288 7% Revenue Organic 271 288 (6%) Before special items 34 40 (6) EBITDA After special items 19 34 (15) Investments 28 19 9 • Adverse organic growth in the quarter due to lower • EBIT
Slide 11: Eastern European segment
Investor presentation, Q1 2018 17 May 2018 11 Eastern European segment Q1 DKK million 2018 2017 Variance Actual 127 89 43% Revenue Organic 125 89 41% Before special items 22 6 16 EBITDA After special items 21 6 15 Investments 1 4 (3) • Strong growth in the Polish market and both price • Negative org
Slide 12: Intention of a preemptive share capital increase of DKK 500 million
Investor presentation, Q1 2018 17 May 2018 12 Intention of a preemptive share capital increase of DKK 500 million Use of proceeds M&A activities • Reduce the increased interest-bearing debt • Potential acquisition targets identified following the acquisition of HDKS • Ongoing high-level dialogue wit
Slide 13: Unique opportunity to participate in market restructuring
Investor presentation, Q1 2018 17 May 2018 13 Unique opportunity to participate in market restructuring H+H is in a unique situation Geographical focus • Overcapacity in the German aircrete market • Proven track record in successful restructuring • Target list includes • Companies suffering from ove
Slide 14: Q&A
Investor presentation, Q1 2018 17 May 2018 14 Q&A
Slide 15: Thank you
Investor presentation, Q1 2018 17 May 2018 15 Thank you H+H International A/S Lautrupsgade 7, 6th Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 info@hplush.com www.hplush.com
Slide 16: Appendices
Investor presentation, Q1 2018 17 May 2018 16 Appendices
Slide 17: Geographical footprint
Investor presentation, Q1 2018 17 May 2018 17 Geographical footprint
Slide 18: External growth drivers Risk factors
Investor presentation, Q1 2018 17 May 2018 18 External growth drivers Risk factors Den fra årsrapporten
Slide 19: The business model
Investor presentation, Q1 2018 17 May 2018 19 The business model
Slide 20: Revenue allocation 2017
Investor presentation, Q1 2018 17 May 2018 20 Revenue allocation 2017 5% 25% UK 20% Continental Western Europe 43% CWE Western Europe Eastern Europe Poland Russia 75% 32%
Slide 21: EBITDA and EBIT margin development and EBITDA allocation 2017
Investor presentation, Q1 2018 17 May 2018 21 EBITDA and EBIT margin development and EBITDA allocation 2017 EBITDA EBIT % (DKK million) 300 12 22% 10 200 8 Western Europe 6 Eastern Europe 100 4 78% 2 0 0 2011 2012 2013 2014 2015 2016 2017
Slide 22: Non-current asset allocation as of 31 December 2017
Investor presentation, Q1 2018 17 May 2018 22 Non-current asset allocation as of 31 December 2017 13% 23% UK Continental Western Europe 47% CWE Western Europe 53% Eastern Europe Poland 35% Russia 29%
Slide 23: Net interest-bearing debt development and allocation as of 31 December 2017
Investor presentation, Q1 2018 17 May 2018 23 Net interest-bearing debt development and allocation as of 31 December 2017 Net interest-bearing debt Gearing (DKK million) 800 10 6% 4% 12% GBP EUR 400 5 PLN DKK 78% 0 0 2011 2012 2013 2014 2015 2016 2017
Slide 24: Strategic rationale for the CSU acquisitions
Investor presentation, Q1 2018 17 May 2018 24 Strategic rationale for the CSU acquisitions • Create a more balanced geographical footprint • Expand the product offering, mainly within residential high-rise, becoming the second largest European player within CSU • Harvest synergies with the aircrete