H+h International A/s · OMXCOP:HH
H+h International A/s — H1 2023 Earnings Presentation
22 slides from H+h International A/s's earnings presentation, Aug 17, 2023
Slide 1: H1 2023 Financial results — Roadshow ABG
H+H International A/S H1 2023 Financial results — Roadshow ABG 17 August 2023 PARTNERS IN WALL BUILDING
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of H+H International A/S, may cause actual developments and results to differ materially from the expecta
Slide 3: Introduction
Introduction Q2 summary Market development Business improvements Financial performance & Outlook Closing remarks Question and answers.
Slide 4: Low building activity impacting our earnings in Q2
Low building activity impacting our earnings in Q2 Selected financial figures Figures in DKKm unless otherwise stated. Q2 2022 figures in brackets Organic growth Gross margin EBITDA margin® (13%) (32%) (23%) EBIT margin® Free cash flow Financial gearing (18%) (165) (0.5x) (1) Before special items (2
Slide 5: Underlying need for H+H's product, however, current interest rates causing high uncertainty in newbuild
Underlying need for H+H’s product, however, current interest rates causing high uncertainty in newbuild - Interest rates are the major driver for investments into housing Permissions for new Buildings 21000 2 19000 . Permits are down across all our markets 30%-40% and no signs of as short-term recov
Slide 6: Extremely low building activity leading to 40% lower volumes
Extremely low building activity leading to 40% lower volumes Consolidated volumes by quarter Thousand cubic meters r -39%, 1,182 1,018 899 634 723 Q2 2022 Q3 2022 Q4 2022 Qi. 2023 Q2 20 23 Q2 Highlights Central Western Europe: In Germany, permissions for new buildings from January to May 2023 decrea
Slide 7: Proactively improving our business
Proactively improving our business Plant network efficiencies Adjusting our st base Focus on procurement Permanently closed 5 plants across the network redirecting volumes to bigger and more efficient plants Adjusted our operations workforce by around 20% and further improving uptime and de- bottlen
Slide 8: Revenue declined in all regions, with Poland being the primary driver
Revenue declined in all regions, with Poland being the primary driver Consolidated revenue by quarter Quarterly revenue by region ; DKKm. Revenue growth (organic growth) DKKm. Revenue growth (organic growth) 1™ Q22022 MM Q2 2023 -19% (-20%) -27% (-26%) 920 810 / | Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 9: Soft demand affecting profitability in Q2 2023
Soft demand affecting profitability in Q2 2023 Gross profit and gross margin DKKm and percent Gross Profit — Gross Margin (%) 32%, 320 25% —— 9 49% —— 24% 254 202 178 154 Q2 2022 Q32022 Q42022 Q12023 Q22023 = Gross profit increased by DKK 24 million to DKK 178 million quarter on quarter, correspondi
Slide 10: Profitability for the first six months affected by low building activity
Profitability for the first six months affected by low building activity Gross profit and gross margin DKKm and percent WS Gross Profit — Gross Margin (%) EBIT and EBIT margin DKKmand percent MV EBIT — EBIT Margin (%) EBITDA and EBITDA margin DKKm and percent (MI EBITDA — EBITDA Margin (%) eR 30%———
Slide 11: Stable working capital in Q2
Stable working capital in Q2 Net interest-bearing debt (NIBD) DKKm. 875 804 a =e NIBD 31/03 23 _ CF operating CAPEX, excl. Sale of NIBD. activities IFRS 16 assets, FX 30/6 23 and other * Development in operating cash flow is led by lower earnings for the period and a negative working capital develop
Slide 12: Restructuring costs and special items
Restructuring costs and special items * In Q2 2023, DKK 46 million in restructuring costs were recognised, primarily related to factory closings. Total recognition for the first six months amounted to DKK 55 million = Total restructuring costs is expected to be around 100 million and has an expected
Slide 13: Update on full year 2023 outlook
Update on full year 2023 outlook The continuing impact of high interest rates has been affecting the affordability of mortgages, presenting challenges for homebuyers. Furthermore, inflation has been constraining consumer spending patterns, and the anticipated increase in volumes has not materialised
Slide 14: We are driving the efficiency of our plant network, improving our SG&A base and keeping a strong focus on procurement
1 2 3 We are driving the efficiency of our plant network, improving our SG&A base and keeping a strong focus on procurement 4 14
Slide 15: Questions and answers
Questions and answers \4 ) a
Slide 16: For further information, please contact
For further information, please contact Niclas Bo Kristensen Head of Investor Relations and Treasury nbk@HplusH.com H+H International A/S Lautrupsgade 7, 5th Floor 2100 Copenhagen © Denmark +45 35 27 02 00 info@hplush.com www.hplush.com 16
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Slide 18: 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 19: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income Statement of comprehensive income (DKK million) Q2 2022 H1 2022 Full year 2022 Profit for the period Iterns that may be reclassified subsequently to profit or loss: Fair value adjustments of derivaties financial instruments Foreign exchange adjustments,
Slide 20: Consolidated balance sheet
Consolidated balance sheet Assets (DKK million) Non-current assets Goodwill Other intangible assets Property, plant and equipment Deferred tax assets Financial assets Total non-current assets. Current assets Inventories Receivables Cash Total current assets. Total assets 20 31 Dec. 2022 30 Jun. 2022
Slide 21: Consolidated balance sheet
Consolidated balance sheet Equity and liabilities (DKK million) 31 Dec. 2022 30 Jun. 2022 Equity Share capital Retained earnings Other reserves Equity attributable to H+H International A/S's sharehclders Equity attributable to non-controlling interests Total equity Non-current liabilities Pension ob
Slide 22: Consolidated cash flow statement
Consolidated cash flow statement Cash flow statement (DKK million) Operating profit (EBIT) Financial income, received Financial items, paid Depreciation and amortisation Impairment of assets associted to closed dawn factories Gain and losses on sale of assets and other non-cash effects Changs in wor