H+H International A/S · OMXCOP:HH
H+H International A/S — Investor Presentation (March 2010)
39 slides from H+H International A/S's investor presentation, Mar 19, 2010
Slide 1: H+H UK for Investors
H+H UK for Investors 19 March 2010 build with ease
Slide 2: H+H UK
H+H UK Who we are What we do Mission & Strategy Historic Performance 2008-09 Performance Future Outlook 2.
Slide 3: H+H UK Limited
H+H UK Limited Established 1949 – Celcon Limited 1966 • Screeds for roof, floors and pipes First block factory 1959 • Grays (closed 1995) 1990 Other plants • Rugeley (1966 - 1992) • Westbury (1974 – mothballed 2008) 1999 • Pollington (1978) • Borough Green (1992) 2001 • Pollington 2 (2002) H
Slide 4: H+H UK Key Sites
H+H UK Key Sites Uddingston Pollington 1 & 2 Walsall Westbury Borough Bovey Tracey Green 4.
Slide 5: Quality Aircrete
Quality Aircrete High Quality From Variable Quality Aircrete Pulverised Fuel Ash (PFA) 5.
Slide 6: Celcon Blocks
Celcon Blocks 6.
Slide 7: UK Concrete Block Market 2007
UK Concrete Block Market 2007 100% = 88,199 m2 Growth 07 vs. 06 = 1.32% Aircrete 31% Dense 40% Lightweight 29% Source: BERR Monthly Statistics of Building Materials and Components 7.
Slide 8: Customer Types
Customer Types Non-Housing (Contractor) Social Housing Private Housing Merchants Customer Type Source: H+H UK 8.
Slide 9: UK Product Size/Weight not Optimised for Site Productivity
UK Product Size/Weight not Optimised for Site Productivity Aggregate Block Aircrete Block Optimised for manual lifting Same size is 3 (20kg) times lighter ? Traditional conservative nature of UK market has kept mortar block going whilst other countries have migrated to more intelligent products 9.
Slide 10: Aircrete Block Market started to decline 7 yrs ago
Aircrete Block Market started to decline 7 yrs ago despite booming construction market… Source: Berr (http://stats.berr.gov.uk/construction/building/) 10.
Slide 11: … as Timber Frame has gained market share
… as Timber Frame has gained market share 45000 25 23 40000 22 21 20 35000 Percent of all hom es built 30000 17 17 Num bers of starts 15 15 25000 13 20000 11 10 10 10 15000 8 7 7 10000 6 5 5000 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Timber Frame Units Timber Frame
Slide 12: … increase in the proportion of flats & apartments
… combined with an increase in the proportion of flats & apartments UK Market by Dwelling Type Source: NHBC 12.
Slide 13: Aircrete has performed in line with other concrete blocks during the downturn
Aircrete has performed in line with other concrete blocks during the downturn… Monthly Block Sales by Type BERR Block M ar k e t data ‘000 Actual De s patche s pe r M 2 m2 3500 3000 2500 2000 Dense Lw t 1500 A ircrete 1000 500 0 7 7 8 8 9 9 0 0 -0 -1 -0 -0 -0 -0 -0 -1 ep ep ep ep ar ar ar ar M M M M
Slide 14: … and Timber Frame has started to lose share
… and Timber Frame has started to lose share for the first time in a decade. Market Share of Timber Frame 30% 25% 20% 15% 10% '06 '07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 Source: NHBC GB Starts 14.
Slide 15: H+H UK
H+H UK Who we are What we do Mission & Strategy Historic Performance 2008-09 Performance Future Outlook 15.
Slide 16: H+H Mission & Values
H+H Mission & Values Mission To maximise the potential of aircrete in buildings through market leading, customer oriented and practical innovative solutions. Values Simplicity and speed in everything we do Customer and results focus Honesty, trust and respect – internally and externally Commitment t
Slide 17: H+H – Business Model
H+H – Business Model Builders’ B2B company Merchants, Market player Factors & Trading DIY Stores Developers, Dealing Builders & Contractors Dealing Installers Influencing & Clients / inspiring Advisers 17.
Slide 18: Growth Strategy
Growth Strategy Products Products & Solutions Blocks Aircrete Housing Buildings (Image of a house) Quoting m2 Proposing objects 18.
Slide 19: H+H UK
H+H UK Who we are What we do Mission & Strategy Historic Performance 2008-09 Performance Future Outlook 19.
Slide 20: The UK Aircrete Market is highly correlated to House Building Activity
The UK Aircrete Market is highly correlated to House Building Activity… ‘000s Note: 10m2 of area is 1m3 of volume based on average block thickness of 100mm 20.
Slide 21: H+H UK
H+H UK Who we are What we do Mission & Strategy Historic Performance 2008-09 Performance Future Outlook 21.
Slide 22: The house building slowdown started in Q3 2007 as mortgage finance tightened
The house building slowdown started in Q3 2007 as mortgage finance tightened 120 Number of -77% 100 Loans from Approved 80 Jan for Home 07 60 Purchase (000s) 40 20 0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 07 07 07 07 07
Slide 23: H+H UK Financial Performance During Downturn
H+H UK Financial Performance During Downturn Revenue by Quarter 2005 to 2009 Revenue 4 per. Mov. Avg. (Revenue) £20,000 £18,000 £16,000 £14,000 £12,000 £'000 £10,000 £8,000 £6,000 £4,000 £2,000 £- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2005 2005 2005 2006 2006 2006 2006 2007 2
Slide 24: H+H UK
H+H UK Who we are What we do Mission & Strategy Historic Performance 2008-09 Performance Future Outlook 24.
Slide 25: Future Outlook
Future Outlook 1. Recovery of the house building market 2. Grow sales and margins in new markets, new products and new sales approaches 25.
Slide 26: There is an underlying Demand for Housing and a Commitment to Supply
There is and underlying Demand for Housing and a Commitment to Supply…. 2009 CLG Projection Households in England to grow to 27.8 million in 2031 equivalent to 252,000 pa (up from 223,000 in the 2004 projection) Queen’s Speech 6 Nov 2007 Prime Minister pledged 240,000 net new homes pa by 2016, deliv
Slide 27: … but home building has not kept up with household growth
… but home building has not kept up with household growth… Source: CLG – Completions in England 27.
Slide 28: …and prices have become increasingly unaffordable.
…and prices have become increasingly unaffordable. 28.
Slide 29: Significant demand growth will require improvement in affordability
Significant demand growth will require improvement in affordability… Source: CLG 29.
Slide 30: … increase in availability of mortgage finance with higher loan-to-value ratios
… combined with an increase in the availability of mortgage finance with higher loan-to-value ratios, especially for first time buyers. Number of Loans Approved for House Purchase Loan-to-value Ratios ‘000 M ortgage Approvals - Volume 120.0 100.0 80.0 60.0 40.0 20.0 0.0 l-0 7 07 -0 7 08 -0 8 -0 8 l-
Slide 31: Key Drivers to Increase House Building
Key Drivers to Increase House Building Increase Affordability (further house price deflation or wage inflation) Increase Mortgage Finance (depends on the banks) Increase Land Supply (depends on fundamental change in the planning system) Increase in Social Housing (depends on Government money
Slide 32: Housing Starts follow Mortgage Approvals & both have been growing slowly
Housing Starts follow Mortgage Approvals & both have been growing slowly from a very low base Number of M ortgage Approv als - Volume Loans 120.0 Approved 100.0 for Home 80.0 Purchase 60.0 (000s) 40.0 20.0 0.0 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0 l-0 -0 -0 n- 0 -0 -0 l-0 -0 -0 n- 0 -0 -0 l-0 -0 -0 n- 1 J
Slide 33: Future Outlook
Future Outlook 1. Recovery of the house building market 2. Grow sales and margins in new markets, new products and new sales approaches 33.
Slide 34: Growth Strategy
Growth Strategy Products Products & Solutions Blocks Aircrete Housing Buildings (Image of a house) Quoting m2 Proposing objects 34.
Slide 35: New Products
New Products New Products Products Existing Products Existing New Customers Customers Markets 35.
Slide 36: Innovative Solutions
H+H is the only UK aircrete supplier able to manufacture and offer modern aircrete products Innovative Solutions Multi Plates (Large format aircrete) Horizontal Elements (Reinforced Aircrete) Vertical Elements (Reinforced aircrete) Mega Plates (Large format aircrete) 36.
Slide 37: New Sales Approaches: Rå Build
New Sales Approaches: Rå Build The masonry response to timber frame A weathertight masonry shell 37.
Slide 38: The Rå Build Advantage
The Rå Build Advantage Stage One Stage Three Stage Two Stage Four 38.
Slide 39: H+H UK
H+H UK Who we are What we do Mission & Strategy Historic Performance 2008-09 Performance Future Outlook 39.
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