H+H International A/S · OMXCOP:HH
H+H International A/S — FY2017 Earnings Presentation
26 slides from H+H International A/S's earnings presentation, Mar 14, 2018
Slide 1: Investor presentation Full year and Q4 2017
Investor presentation Full year and Q4 2017 14 March 2018
Slide 2: Introduction
Investor presentation, annual report 2017 14 March 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 ac
Slide 3: Highlights
Investor presentation, annual report 2017 14 March 2018 3 Highlights • Organic growth of 6% in the fourth • DKK 61 million in the fourth quarter Organic quarter against DKK 45 million last year EBITDA* growth • Growth in local currency of 3% year-to- • DKK 242 million for the full year against date
Slide 4: Financial performance
Investor presentation, annual report 2017 14 March 2018 4 Financial performance Q4 Q4 YTD DKK million 2017 2016 Variance 2017 2016 Variance Actual 370 347 7% 1 622 1 611 1% Revenue Organic 368 347 6% 1 654 1 611 3% Gross margin* 29% 24% 5% 27% 25% 2% Before special items 61 45 16 242 211 31 EBITDA A
Slide 5: Outlook 2018
Investor presentation, annual report 2017 14 March 2018 5 Outlook 2018 Outlook 2018 Specific assumptions for outlook for 2018 • Growth before acquisitions and measured in local currencies is • Continuous economic growth in our geographical footprint expected to be around 5% • The commercial and oper
Slide 6: Long-term financial targets
Investor presentation, annual report 2017 14 March 2018 6 Long-term financial targets NEW TARGETS 2017 RESULTS OLD TARGETS * EBIT MARGIN 8-10% 10% (Operating margin) At least 11% ROIC (Return on invested capital) Min. 12% 16% At least 12% FINANCIAL GEARING 1-2 (Net interest-bearing debt / * beforeEB
Slide 7: Other selected items
Investor presentation, annual report 2017 14 March 2018 7 Other selected items • Solvency ratio at 28% at 31 December 2017 Solvency • Project to ensure structured reporting • Diluted from acquisition(s) until the CSR ratio anticipated share capital increase is initiated completed • Acquisition of si
Slide 8: Western European segment
Investor presentation, annual report 2017 14 March 2018 8 Western European segment Q4 Q4 YTD DKK million 2017 2016 Variance 2017 2016 Variance Actual 277 280 (1%) 1 220 1 260 (3%) Revenue Organic 278 280 (1%) 1 270 1 260 1% Before special items 28 28 0 194 191 3 EBITDA After special items 16 27 (11)
Slide 9: Borough Green factory upgrade
Investor presentation, annual report 2017 14 March 2018 9 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 • Ramp up during Q2 2018 with anticipated 50% volume output • Special items of DK
Slide 10: Eastern European segment
Investor presentation, annual report 2017 14 March 2018 10 Eastern European segment Q4 Q4 YTD DKK million 2017 2016 Variance 2017 2016 Variance Actual 93 66 41% 402 350 15% Revenue Organic 89 66 34% 384 350 10% Before special items 7 (5) 12 52 26 26 EBITDA After special items 8 2 6 48 29 19 Investme
Slide 11: Strategic rationale for the CSU acquisitions
Capital structure considerations March 2018 11 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 aircrete
Slide 12: Changed legislation gives H+H a unique opportunity in market restructuring
Capital structure considerations March 2018 12 Changed legislation gives H+H a unique opportunity to participate in market restructuring if the necessary funds are available H+H is in a unique situation Geographical focus • With newly changed anti-trust regulation in Germany in 2017 the threshold fo
Slide 13: A share capital increase of DKK 500 million
Capital structure considerations March 2018 13 A share capital increase of DKK 500 million will give H+H a capital structure to continue consolidation and a sustainable financial gearing Use of proceeds M&A activities • Reduce the increased interest-bearing debt • Potential acquisition targets ident
Slide 14: Q&A
Investor presentation, annual report 2017 14 March 2018 14 Q&A
Slide 15: Thank you
Investor presentation, annual report 2017 14 March 2018 15 Thank you H+H International A/S Lautrupsgade 7, 6th Floor 2100 Copenhagen Ø Denmark +45 35 27 02 00 [email protected] www.hplush.com
Slide 16: Appendices
Investor presentation, annual report 2017 14 March 2018 16 Appendices
Slide 17: Geographical footprint
Investor presentation, annual report 2017 14 March 2018 17 Geographical footprint
Slide 18: External growth drivers Risk factors
Investor presentation, annual report 2017 14 March 2018 18 External growth drivers Risk factors Den fra årsrapporten
Slide 19: Commercial approach
Investor presentation, annual report 2017 14 March 2018 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 results
Slide 20: Business model
Investor presentation, annual report 2017 14 March 2018 20 Business model
Slide 21: Revenue allocation 2017
Investor presentation, annual report 2017 14 March 2018 21 Revenue allocation 2017 5% 25% UK 20% Continental Western Europe 43% CWE Western Europe Eastern Europe Poland Russia 75% 32%
Slide 22: EBITDA and EBIT margin development and EBITDA allocation 2017
Investor presentation, annual report 2017 14 March 2018 22 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 23: Non-current asset allocation as of 31 December 2017
Investor presentation, annual report 2017 14 March 2018 23 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 24: Net interest-bearing debt development and allocation
Investor presentation, annual report 2017 14 March 2018 24 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 25: CSU Poland
Investor presentation, annual report 2017 14 March 2018 25 CSU Poland
Slide 26: CSU Germany
Investor presentation, annual report 2017 14 March 2018 26 CSU Germany