H+h International A/s · OMXCOP:HH
H+h International A/s — Q1 2024 Earnings Presentation
16 slides from H+h International A/s's earnings presentation, May 16, 2024
Slide 1: H+H International A/S Q1 2024 Financial Results
H+H International A/S Q1 2024 Financial Results Roadshow at ABG Sundal Collier 16 May 2024
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: First quarter in line with expectations
First quarter in line with expectations Q1 2024 key takeaways Selected financial figures (1) Early signs of market improvement in UK and PL Figures in DKKm unless otherwise stated. Q1 2023 figures in brackets resulting in 13% higher sales volumes. . (2) Business Improvement program is delivering wit
Slide 4: Early signs of market improvement in UK and PL
Early signs of market improvement in UK and PL The United Kingdom: Revenue by region in DKKm. Revenue growth / organic growth • Overall consumer confidence is increasing in the UK. Q1 2023 Q1 2024 • Application for new mortgages rising. Number of mortgage approvals were over 60,000 in February for t
Slide 5: Business improvement program delivering
Business improvement program delivering From Q1 2023… …to Q1 2024 32 operating plants 23 operating plants (plus 4 mothballed) Stock with 3.7 months reach Stock with 2.2 months reach 170m DKK fixed costs in operations 120m DKK fixed costs in operations Around 1700 employees Around 1300 employees Indi
Slide 6: Project ONE - Business transformation in CWE
Project ONE - Business transformation in CWE From 3 15 to 12 plants Strategic objectives Results Original three plants before 2018 One face to the Customer A true partner in wall building offering great customer experience Simplified product portfolio Better plant utilisation and higher uptime resul
Slide 7: Organic growth significantly impacted by country mix
Organic growth significantly impacted by country mix Volumes by quarter (Thousand m3) Revenue by quarter DKKm. Revenue growth / organic growth 1,000 1,182 920 1,087 874 1,018 810 0% / -4% 899 +13% 731 699 641 644 723 740 719 601 634 648 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
Slide 8: Gross margin in Q1 was impacted by gas and significant stock adjustments
Gross margin in Q1 was impacted by gas and significant stock adjustments Gross Profit and Gross Margin Gross margin development Gross Profit (DKKm) Gross Margin (%) ▪ Gross profit in Q1 2024 was influenced by de-stocking. In contrast, there was a planned stock build-up in Q1 2023. 350 30 ▪ In the fi
Slide 9: Restructuring and special items
Restructuring and special items Gas settlement: ▪ As outlined in the 2023 Annual Report, H+H has decided to settle unfavourable gas contracts that were established in the summer of 2022. Consequently, a one- off loss of DKK 93 million was recorded in the first quarter and classified as special items
Slide 10: Increasing NIBD following normal seasonality
Increasing NIBD following normal seasonality Net interest-bearing debt Financial gearing DKKm. NIBD to EBITDA before special items Long-term financial target of 1-2x EBITDA 19 58 5.5 42 5.1x 5.0 4.5 4.0 3.6x 3.5 1,006 3.0 2.6x 887 2.5 2.0x 2.0 1.4x 1.5 1.0 0.5 0.0 NIBD CF Operating CAPEX incl. FX, I
Slide 11: Outlook for 2024 maintained
Outlook for 2024 maintained Revenue growth measured EBIT before special items in local currencies (“organic is expected to be (DKKm) growth”) -5% to +5% 50 to 150 Specific assumptions And following general assumptions H+H's financial outlook is based on • Sales volumes and product mix several specif
Slide 12: Key takeaways
Key takeaways Early signs of market improvement in UK and PL resulting in 1 13% higher sales volumes. Business Improvement program is delivering with approximately 2 30% lower fixed costs in Q1. Gross margin came in as expected, however is impacted by 3 planned decrease of stock and still effects fr
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Slide 14: 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 14
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Slide 16: Five-year summary
Five-year summary Income statement (DKK million) 2023 2022 2021 2020 2019 Financial ratios and others 2023 2022 2021 2020 2019 Revenue 2,672 3,604 3,020 2,654 2,840 Sales volume (thousand m3) 2,745 4,187 4,326 4,022 4,494 Gross profit before special items 564 1,020 905 836 877 Organic growth (25%) 1