H+h International A/s · OMXCOP:HH
H+h International A/s — Copenhagen Winter Seminar - Danske Bank Markets 2015
28 slides from H+h International A/s's conference presentation, Dec 3, 2015
Slide 1: Copenhagen Winter Seminar Danske Bank Markets
Copenhagen Winter Seminar Danske Bank Markets 3 December 2015
Slide 2: Forward-looking statement
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 2 Forward-looking statement 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 influencing the activities of the Group, e.
Slide 3: Agenda
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 3 Agenda • Introduction to H+H • Highlights Q3 2015 • Financial performance Q1-Q3 2015 • Grupa Prefabet acquisition • Balance sheet items • Outlook for 2015 • Q&A
Slide 4: H+H in short
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 4 H+H in short • H+H develops, manufactures and sells aircrete in standard blocks and reinforced products for the building industry in Northern and Eastern Europe and in the UK. • H+H is Europe’s second-largest manufacturer of aircrete
Slide 5: Aircrete – the product
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 5 Aircrete – the product • Examples of products which are handled manually without any use of lifting gear Standing wall panel Used in the construction Tempoblock of both inner and outer Thermo-block Multi plates Used in the leaves of c
Slide 6: How the products can be applied
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 6 How the products can be applied Terraced housing Partition walls in projects block of flats Multi-storey Industrial hall housing projects
Slide 7: Production of aircrete – the process
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 7 Production of aircrete – the process
Slide 8: Shareholder value and targets, mission, vision and strategic ambition
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 8 Shareholder value and targets, mission, vision and strategic ambition 1 1 1 Highest growth rate in the One company for improved Most attractive aircrete solutions market profitability utilising synergies • Competitive solutions for an
Slide 9: Long-term financial targets
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 9 Long-term financial targets
Slide 10: Value proposition and customer segments
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 10 Value proposition and customer segments • Build with ease is the corner stone in our value proposition toward our core customer segments
Slide 11: What have we done to improve earnings since 2011
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 11 What have we done to improve earnings since 2011 • SGA costs reduced by more than 20%. • Acquisition of Grupa Prefabet. • Annual gross savings from excellence in • Closedown of loss-making activities in production DKK 20 million. Fin
Slide 12: Highlights Q3 2015
Highlights Q3 2015 3 December 2015
Slide 13: Highlights Q3 2015
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 13 Highlights Q3 2015 • Organic growth in the third quarter was 6% (adjusted for acquisitions and measured in local currency). • Increase in sales compared to last year was driven by growth in all markets except for Russia. • EBIT margi
Slide 14: Financial performance Q1-Q3 2015
Financial performance Q1-Q3 2015 3 December 2015
Slide 15: Group financial performance
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 15 Group financial performance Q3 2015 Year to date • Revenue was up 14%. Growth in all markets except for • Revenue up 18% due to the combination of a Russia. Organic growth of 6%. strong organic growth in the Western European segment
Slide 16: Segments – Western Europe
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 16 Segments – Western Europe Q3 2015 Year to date • Revenue up 18% on 2014. This is based on growth in all • Revenue up 19% in the first three quarters of the markets and the UK market made a particularly 2014. This is based on growth i
Slide 17: Segments – Eastern Europe
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 17 Segments – Eastern Europe Q3 2015 Year to date • In third quarter the revenue was up by 1% compared to • Revenue up 15% in the first three quarters of 2014. Revenue grew in Poland due to the acquisition of 2015, mainly due to the acq
Slide 18: Grupa Prefabet
Grupa Prefabet 3 December 2015
Slide 19: Restructuring plan – goals set out and achievements
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 19 Restructuring plan – goals set out and achievements Closedown of four factories – done. Reduce net working capital by DKK 20 million in 2015 – done. • Integration costs of DKK 20 million in 2015 – is running to schedule. • EBITDA
Slide 20: Capacity situation in the Polish market
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 20 Capacity situation in the Polish market • Until 30 September the volume sold by the combined business was approx. 10% lower than the volume sold by the two stand-alone companies in the same period last year which is in line with the
Slide 21: Balance sheet items
Balance sheet items 3 December 2015
Slide 22: Free cash flow and investments
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 22 Free cash flow and investments • Free cash flow was DKK 84 million, against DKK 75 million in Q3 2014. • Free cash flow improved due to a combination of operational profits and lower net working capital. • Investments of DKK 14 milli
Slide 23: Net interest-bearing debt (NIBD) and equity
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 23 Net interest-bearing debt (NIBD) and equity • NIBD was DKK 476 million at 30 September 2015, down DKK 47 million on 30 September 2014. • NIBD over EBITDA ratio was 2.4, adjusted for special items the ratio was 2.8 which is in line wi
Slide 24: Outlook for 2015
Outlook for 2015 3 December 2015
Slide 25: Outlook for 2015
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 25 Outlook for 2015 H+H updates its outlook for 2015: • Organic revenue growth is expected to be in the region of 10%, as previously announced. • EBITDA before special items is expected to be DKK 170-180, against the previously announce
Slide 26: Comments to outlook for 2015
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 26 Comments to outlook for 2015 The expectations for H+H’s financial performance in 2015 are based partly on the following specific assumptions: • Economic growth of around 0-3% in our geographical footprint. • The operational excellenc
Slide 27: Long-term financial targets
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 27 Long-term financial targets
Slide 28: Q&A
Copenhagen Winter Seminar - Danske Bank Markets 3 December 2015 28 Q&A
H+H International — Copenhagen Winter Seminar - Danske Bank Markets 2015 on 6ix