H+h International A/s · OMXCOP:HH
H+h International A/s — Q2 2017 Earnings Presentation
24 slides from H+h International A/s's earnings presentation, Aug 17, 2017
Slide 1: Investor presentation Q2 2017
Investor presentation Q2 2017 17 August 2017
Slide 2: Introduction
Investor presentation, interim report H1 2017 17 August 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 influencing t
Slide 3: Highlights
Investor presentation, interim report H1 2017 17 August 2017 3 Highlights • Revenue in local currency was on par • DKK 7 million in the second quarter of Organic with last year for the second quarter. 2017 against DKK 6 million last year. Investments growth • Organic growth of 3% for the first half
Slide 4: Financial performance
Investor presentation, interim report H1 2017 17 August 2017 4 Financial performance Q2 Q1 - Q2 DKK million 2017 2016 Variance 2017 2016 Variance Actual 445 458 (3%) 822 825 (0%) Revenue Organic 458 458 0% 848 825 3% Gross margin * 28% 26% 2% 26% 25% 1% Before special items 74 66 8 111 103 8 EBITDA
Slide 5: Outlook and long-term financial targets
Investor presentation, interim report H1 2017 17 August 2017 5 Outlook and long-term financial targets Outlook 2017 and long-term financial targets Specific assumptions for outlook for 2017 • No changes to outlook 2017 and the long-term financial targets • Economic growth of around 1-3% in our geogr
Slide 6: Other selected items
Investor presentation, interim report H1 2017 17 August 2017 6 Other selected items Free cash • Free cash flow negatively influenced by increase in working capital, mainly due Pension • Defined contribution obligation less deferred tax decreased approx. DKK 24 flow to building stock in the UK. oblig
Slide 7: Western European segment
Investor presentation, interim report H1 2017 17 August 2017 7 Western European segment Q2 Q1 - Q2 DKK million 2017 2016 Variance 2017 2016 Variance Actual 336 362 (7%) 624 654 (5%) Revenue Organic 355 362 (2%) 660 654 1% Before special items 66 65 1 107 106 1 EBITDA After special items 62 65 (3) 96
Slide 8: Borough Green factory upgrade
Investor presentation, interim report H1 2017 17 August 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 • The increased transportation cos
Slide 9: Eastern European segment
Investor presentation, interim report H1 2017 17 August 2017 9 Eastern European segment Q2 Q1 - Q2 DKK million 2017 2016 Variance 2017 2016 Variance Actual 109 96 14% 198 171 16% Revenue Organic 103 96 7% 187 171 10% Before special items 18 10 8 24 11 13 EBITDA After special items 14 9 5 20 8 12 Inv
Slide 10: H+H acquires silicate lime business in Poland
Investor presentation, interim report H1 2017 17 August 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. • Revenu
Slide 11: Product
Investor presentation, interim report H1 2017 17 August 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 bearing abi
Slide 12: Market
Investor presentation, interim report H1 2017 17 August 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 (7 factories) • SILPRO (
Slide 13: Rationale
Investor presentation, interim report H1 2017 17 August 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 to t
Slide 14: Q&A
Investor presentation, interim report H1 2017 17 August 2017 14 Q&A
Slide 15: Thank you
Investor presentation, interim report H1 2017 17 August 2017 15 Thank you H+H International A/S Dampfærgevej 3, 3rd Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 info@hplush.com www.hplush.com
Slide 16: Appendices
Investor presentation, interim report H1 2017 17 August 2017 16 Appendices
Slide 17: Geographical footprint
Investor presentation, interim report H1 2017 17 August 2017 17 Geographical footprint Production facility Sales and administration
Slide 18: Strategy and external growth drivers
Investor presentation, interim report H1 2017 17 August 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 distributors, co
Slide 19: Commercial approach
Investor presentation, interim report H1 2017 17 August 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 resu
Slide 20: Business model
Investor presentation, interim report H1 2017 17 August 2017 20 Business model
Slide 21: Revenue allocation 2016
Investor presentation, interim report H1 2017 17 August 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 H1 2017 17 August 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 H1 2017 17 August 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 H1 2017 17 August 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