H+h International A/s · OMXCOP:HH

H+h International A/s — Merger or Acquisition (July 2017)

7 slides from H+h International A/s's merger presentation, Jul 7, 2017

  1. Slide 1: H+H acquires silicate lime business in Poland

    H+H acquires silicate lime business in Poland 7 July 2017

  2. Slide 2: H+H acquires silicate lime business in Poland

    H+H acquires Grupa Ożarów’s silicate lime business in Poland 7 July 2017 2 H+H acquires silicate lime business in Poland • H+H Polska Sp. z o.o. buys Grupa Silikaty Sp. z o.o. from Grupa Ożarów • Purchase price approx. DKK 64 million • Payment schedule agreed • On closing – approx. DKK 14 million •

  3. Slide 3: Product

    H+H acquires Grupa Ożarów’s silicate lime business in Poland 7 July 2017 3 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 be

  4. Slide 4: Market

    H+H acquires Grupa Ożarów’s silicate lime business in Poland 7 July 2017 4 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 (7 factories) • S

  5. Slide 5: Grupa Silikaty Sp. z o.o.

    H+H acquires Grupa Ożarów’s silicate lime business in Poland 7 July 2017 5 Grupa Silikaty Sp. z o.o. • Second largest producer of CSU in Poland with seven plants • Revenue in 2016 of around DKK 157 million • EBITDA in 2016 was around DKK 11 million • Market share of around 30% • Around 300 employees

  6. Slide 6: Rationale

    H+H acquires Grupa Ożarów’s silicate lime business in Poland 7 July 2017 6 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 out

  7. Slide 7: Financial impact

    H+H acquires Grupa Ożarów’s silicate lime business in Poland 7 July 2017 7 Financial impact • Limited investments needed • Transaction costs will be recognized as special items • No changes to outlook 2017 nor the long-term financial targets • Synergies to be harvested from 2018 DISCLAIMER This pres

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