H+h International A/s · OMXCOP:HH
H+h International A/s — Q2 2018 Earnings Presentation
24 slides from H+h International A/s's earnings presentation, Aug 16, 2018
Slide 1: Investor presentation Q2 2018
Investor presentation Q2 2018 16 August 2018
Slide 2: Introduction
Investor presentation, Q2 2018 16 August 2018 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 influencing the activities o
Slide 3: Highlights
Investor presentation, Q2 2018 16 August 2018 3 Highlights • Organic growth of 16% in the second EBITDA • DKK 117 million in the second quarter of Organic quarter of 2018. 2018 against DKK 74 million last year before special growth • Organic growth of 11% for the first half • DKK 157 million for the
Slide 4: Commission of the Borough Green factory as planned
Investor presentation, Q2 2018 16 August 2018 4 Commission of the Borough Green factory as planned • On-site upgrade work started in Q4 2017 • No production in Q1 2018 to allow new equipment to be installed • Ramp-up during Q2 2018 • Commissioned as planned • Continuous optimisation on-going
Slide 5: Financial performance
Investor presentation, Q2 2018 16 August 2018 5 Financial performance Q2 Q1-Q2 DKK million 2018 2017 Variance 2018 2017 Variance Actual 709 445 59% 1 143 822 39% Revenue Organic 517 445 16% 913 822 11% Gross margin * 26% 28% (2%) 24% 26% (2%) Before special items 117 74 43 157 111 46 EBITDA After sp
Slide 6: Outlook 2018
Investor presentation, Q2 2018 16 August 2018 6 Outlook 2018 – updated for organic growth and EBITDA before special items Outlook 2018 Specific assumptions for outlook 2018 • Growth before acquisitions and measured in local currencies is • Continuous economic growth in our geographical footprint exp
Slide 7: Long-term trends
Investor presentation, Q2 2018 16 August 2018 7 Long-term trends Long-term financial targets Long-term financial performance EBIT margin 15% 10% 5% 0% 2013 2014 2015 2016 2017 2018 Return on invested capital (ROIC) EBIT MARGIN Min. 11% 20% (Operating margin before special items) 15% 10% Min. xx% 5%
Slide 8: Other selected items
Investor presentation, Q2 2018 16 August 2018 8 Other selected items • DKK 19 million of costs related to UK imports and acquisitions in the quarter Special • DKK 12 million income related to badwill Rights • Gross proceeds of DKK 525 million items in connection with the Grupa Silikaty issue • Net p
Slide 9: Western European segment
Investor presentation, Q2 2018 16 August 2018 9 Western European segment Q2 Q1-Q2 DKK million 2018 2017 Variance 2018 2017 Variance Actual 517 336 54% 824 624 32% Revenue Organic 375 336 11% 645 624 3% Before special items 87 53 34 117 106 11 EBITDA After special items 78 48 30 97 96 1 Investments 2
Slide 10: Eastern European segment
Investor presentation, Q2 2018 16 August 2018 10 Eastern European segment Q2 Q1-Q2 DKK million 2018 2017 Variance 2018 2017 Variance Actual 192 109 77% 319 198 61% Revenue Organic 142 109 31% 268 198 35% Before special items 40 18 22 62 25 37 EBITDA After special items 48 14 34 69 21 48 Investments
Slide 11: Q&A
Investor presentation, Q2 2018 16 August 2018 11 Q&A
Slide 12: Thank you
Investor presentation, Q2 2018 16 August 2018 12 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 13: Appendices
Investor presentation, Q2 2018 16 August 2018 13 Appendices
Slide 14: Geographical footprint
Investor presentation, Q2 2018 16 August 2018 14 Geographical footprint
Slide 15: External growth drivers Risk factors
Investor presentation, Q2 2018 16 August 2018 15 External growth drivers Risk factors Den fra årsrapporten
Slide 16: The business model
Investor presentation, Q2 2018 16 August 2018 16 The business model
Slide 17: Revenue allocation 2017
Investor presentation, Q2 2018 16 August 2018 17 Revenue allocation 2017 5% 25% UK 20% Continental Western Europe 43% CWE Western Europe Eastern Europe Poland Russia 75% 32%
Slide 18: EBITDA and EBIT margin development and EBITDA allocation 2017
Investor presentation, Q2 2018 16 August 2018 18 EBITDA and EBIT margin development and EBITDA allocation 2017 EBITDA EBIT % (DKK million) 300 12 22% 10 200 8 Western Europe 6 Eastern Europe 100 4 78% 2 0 0 2011 2012 2013 2014 2015 2016 2017
Slide 19: Non-current asset allocation as of 31 December 2017
Investor presentation, Q2 2018 16 August 2018 19 Non-current asset allocation as of 31 December 2017 13% 23% UK Continental Western Europe 47% CWE Western Europe 53% Eastern Europe Poland 35% Russia 29%
Slide 20: Net interest-bearing debt development and allocation as of 31 December 2017
Investor presentation, Q2 2018 16 August 2018 20 Net interest-bearing debt development and allocation as of 31 December 2017 Net interest-bearing debt Gearing (DKK million) 800 10 6% 4% 12% GBP EUR 400 5 PLN DKK 78% 0 0 2011 2012 2013 2014 2015 2016 2017
Slide 21: Strategic rationale for the CSU acquisitions
Investor presentation, Q2 2018 16 August 2018 21 Strategic rationale for the CSU acquisitions • Create a more balanced geographical footprint • Expand the product offering, mainly within residential high-rise, becoming the second largest European player within CSU • Harvest synergies with the aircre
Slide 22: Acquisition of HDKS
Investor presentation, Q2 2018 16 August 2018 22 Acquisition of HDKS • HDKS is the second largest producer of CSU in Germany and operates seven factories. Further, HDKS is present on the Swiss market and has one factory in Switzerland. • The acquisition was closed 28 February 2018. • HDKS had revenu
Slide 23: Acquisition of Grupa Silikaty
Investor presentation, Q2 2018 16 August 2018 23 Acquisition of Grupa Silikaty • Grupa Silikaty is the second largest producer of CSU in Poland and operates seven factories. • The acquisition was closed 4 April 2018. • Grupa Silikaty had estimated revenue in 2016 of DKK 157 million and EBITDA of DKK
Slide 24: Unique opportunity to participate in market restructuring
Investor presentation, Q2 2018 16 August 2018 24 Unique opportunity to participate in market restructuring H+H is in a unique situation Geographical focus • Overcapacity in the German aircrete market • Proven track record in successful restructuring • Target list includes • Companies suffering from