H+h International A/s · OMXCOP:HH
H+h International A/s — Q3 2017 Earnings Presentation
24 slides from H+h International A/s's earnings presentation, Nov 15, 2017
Slide 1: Investor presentation Q3 2017
Investor presentation Q3 2017 15 November 2017
Slide 2: Introduction
Investor presentation, interim report Q1-Q3 2017 15 November 2017 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 influenc
Slide 3: Highlights
Investor presentation, interim report Q1-Q3 2017 15 November 2017 3 Highlights • DKK 71 million in the third quarter • Revenue in local currency was on par Organic with last year for the third quarter. against DKK 64 million last year. EBITDA* growth • Organic growth of 2% year-to-date. • DKK 181 mi
Slide 4: Financial performance
Investor presentation, interim report Q1-Q3 2017 15 November 2017 4 Financial performance Q3 Q1 - Q3 DKK million 2017 2016 Variance 2017 2016 Variance Actual 430 439 (2%) 1.252 1.264 (1%) Revenue Organic 438 439 (0%) 1.286 1.264 2% Gross margin * 27% 26% 1% 26% 25% 1% Before special items 71 64 7 18
Slide 5: Outlook and long-term financial targets
Investor presentation, interim report Q1-Q3 2017 15 November 2017 5 Outlook and long-term financial targets Outlook 2017 and long-term financial targets Specific assumptions for outlook for 2017 • H+H updates its outlook for 2017 • Economic growth of around 1-3% in our geographical footprint. DKK mi
Slide 6: Other selected items
Investor presentation, interim report Q1-Q3 2017 15 November 2017 6 Other selected items • Free cash flow negatively influenced by • Commercial excellence, continuous increase in working capital due to Free cash building stock in the UK. Excellence improvement program in operations and flow • Positi
Slide 7: Western European segment
Investor presentation, interim report Q1-Q3 2017 15 November 2017 7 Western European segment Q3 Q1 - Q3 DKK million 2017 2016 Variance 2017 2016 Variance Actual 319 325 (2%) 943 980 (4%) Revenue Organic 331 325 2% 991 980 1% Before special items 56 54 2 165 163 2 EBITDA After special items 53 54 (1)
Slide 8: Borough Green factory upgrade
Investor presentation, interim report Q1-Q3 2017 15 November 2017 8 Borough Green factory upgrade • The Borough Green factory upgrade is running to schedule. • We are planning the upgrade to be completed in the first half of 2018. • Special items of approximately DKK 25 million cost are expected to
Slide 9: Eastern European segment
Investor presentation, interim report Q1-Q3 2017 15 November 2017 9 Eastern European segment Q3 Q1 - Q3 DKK million 2017 2016 Variance 2017 2016 Variance Actual 111 113 (2%) 309 284 9% Revenue Organic 108 113 (4%) 295 284 4% Before special items 21 20 1 45 30 15 EBITDA After special items 20 19 1 42
Slide 10: H+H acquires silicate lime business in Poland
Investor presentation, interim report Q1-Q3 2017 15 November 2017 10 H+H acquires silicate lime business in Poland • H+H Polska buys Grupa Silikaty from Grupa Ożarów. Facts about Grupa Silikaty • Second largest producer of CSU in Poland with seven plants. • Purchase price approx. DKK 64 million. • R
Slide 11: Product
Investor presentation, interim report Q1-Q3 2017 15 November 2017 11 Product • Calcium silicate units (CSU) is a building block / element made of: • 90% sand • 7% lime • 3% water • The blocks are pressed together and then autoclaved in 8 hours at around 200 °C. • Sound insulation and the load bearin
Slide 12: Market
Investor presentation, interim report Q1-Q3 2017 15 November 2017 12 Market • Installed capacity in Poland is approx. 1,800 tm3 distributed over 30 factories. • Most factories running close to capacity ceiling. • Grupa Silikaty has seven factories. • Main competitors are Xella and SILPRO, further th
Slide 13: Rationale
Investor presentation, interim report Q1-Q3 2017 15 November 2017 13 Rationale • CSU enjoys a strong position in residential high-rise. • Strengthening of our overall position and brand in the Polish wall building industry. • Synergies predominantly from cross selling. • H+H aim at maximizing output
Slide 14: Q&A
Investor presentation, interim report Q1-Q3 2017 15 November 2017 14 Q&A
Slide 15: Thank you
Investor presentation, interim report Q1-Q3 2017 15 November 2017 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, interim report Q1-Q3 2017 15 November 2017 16 Appendices
Slide 17: Geographical footprint
Investor presentation, interim report Q1-Q3 2017 15 November 2017 17 Geographical footprint Production facility Sales and administration
Slide 18: Strategy and external growth drivers
Investor presentation, interim report Q1-Q3 2017 15 November 2017 18 Strategy and external growth drivers MISSION VISION To supply value-added To be number one innovative aircrete aircrete supplier in our solutions to buildings geographical footprint. through profitable partnerships with distributor
Slide 19: Commercial approach
Investor presentation, interim report Q1-Q3 2017 15 November 2017 19 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
Slide 20: Business model
Investor presentation, interim report Q1-Q3 2017 15 November 2017 20 Business model
Slide 21: Revenue allocation 2016
Investor presentation, interim report Q1-Q3 2017 15 November 2017 21 Revenue allocation 2016 5% 9% UK 22% 6% Germany Western Europe Poland 47% Russia Eastern Europe 16% Denmark Other 78% 17%
Slide 22: EBITDA and EBIT margin development and EBITDA allocation 2016
Investor presentation, interim report Q1-Q3 2017 15 November 2017 22 EBITDA and EBIT margin development and EBITDA allocation 2016 EBITDA EBIT % (DKK million) 300 8 13% 7 6 200 5 Western Europe 4 Eastern Europe 3 100 2 87% 1 0 0 2011 2012 2013 2014 2015 2016
Slide 23: Non-current asset allocation as of 31 December 2016
Investor presentation, interim report Q1-Q3 2017 15 November 2017 23 Non-current asset allocation as of 31 December 2016 15% 17% UK Western Europe Germany 50% 50% Eastern Europe Poland 30% Russia 38%
Slide 24: Net interest-bearing debt development and allocation as of 31 December 2016
Investor presentation, interim report Q1-Q3 2017 15 November 2017 24 Net interest-bearing debt development and allocation as of 31 December 2016 Net interest-bearing debt Gearing (DKK million) 1% 800 10 8% 10% GBP EUR 400 5 PLN DKK 81% 0 0 2011 2012 2013 2014 2015 2016