H+H International A/S · OMXCOP:HH

H+H International A/S — Investor Presentation (September 2012)

24 slides from H+H International A/S's investor presentation, Sep 10, 2012

  1. Slide 1: H+H UK for Investors

    H+H UK for Investors 10 September 2012 Mark Oliver MD H+H UK build with ease

  2. Slide 2: H+H UK

    H+H UK  Who we are  What we do  Performance vs. UK Housing  Future Outlook 2.

  3. 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

  4. Slide 4: H+H UK Key Sites

    H+H UK Key Sites Uddingston Pollington 1 & 2 Westbury Borough Bovey Tracey Green 5.

  5. Slide 5: Quality Aircrete

    Quality Aircrete High Quality From Variable Quality Aircrete Pulverised Fuel Ash (PFA) 6.

  6. Slide 6: Celcon Blocks

    Celcon Blocks 7.

  7. Slide 7: New Products for Thin-Joint mainly used traditionally

    New Products for Thin-Joint mainly used traditionally 17% Thin Joint Mortar New products introduced by Traditional H+H used Mortar correctly New products 83% introduced by H+H used traditionally… Thin-Joint Block Sales Source: H+H UK 8.

  8. Slide 8: UK Concrete Block Market – 2011

    UK Concrete Block Market – 2011 100% = 53 M m² Aircrete 30% Dense 42% Lightweight 28% Source: BIS Monthly Statistics of Building Materials http://www.bis.gov.uk/policies/business-sectors/construction/construction-statistics/materials 9.

  9. Slide 9: Wall Market

    Wall Market Housing Non Housing (Cavity Wall) Other Timber Other Masonry 25% 25% 28% 2% Aircrete 70% 50% Other (steel, Aircrete concrete, timber modular etc…) Source: APA, BIS and H+H UK Estimates 10.

  10. Slide 10: H+H – Business Model

    H+H – Business Model Builders’  B2B company Merchants,  Market player Factors & Trading DIY Stores Dealing Builders & Contractors Dealing Installers Influencing & Clients / inspiring Advisers 11.

  11. Slide 11: Customer Types

    Customer Types Construction Projects Social Housing Projects Private Housing Projects Builders Merchant Yard Repair Maintenance Source: H+H UK Improvement 12.

  12. Slide 12: Housing Starts, Aircrete Deliveries & H+H Sales

    Housing Starts, Aircrete Deliveries & H+H Sales INDEX 2007 = 100 100 2007 2008 2009 2010 2011 House Starts GB (private & public) H+H Aircrete BIS Aircrete Source : CLG, CPA, H+H 13.

  13. Slide 13: H+H UK Performance vs House Building Market

    H+H UK Performance vs House Building Market H+H m3 / Dwelling 2005 2006 2007 2008 2009 2010 2011 Source : CLG GB Starts (Public & Private), H+H 14.

  14. Slide 14: Proportion of Flats & Apartments has decreased…

    Proportion of Flats & Apartments has decreased… UK Market by Dwelling Type 100% 90% 80% 70% 60% % total 50% 40% 30% 20% 10% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Detached Semi Terraced Flats Source: NHBC 15.

  15. Slide 15: Aircrete & other masonry taken share from timber-frame

    and Aircrete & other masonry taken share from timber-frame. Market Share of Timber Frame in GB 30% 25% 20% 15% 10% '06 '07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 Source: NHB Stats Table 20 16.

  16. Slide 16: Aircrete Market

    Aircrete Market Source: APA, BIS and H+H UK Estimates for 2011 17.

  17. Slide 17: Strong Brand & Recognised for Innovation

    Strong Brand & Recognised for Innovation 18.

  18. Slide 18: H+H UK

    H+H UK  Who we are  What we do  Performance vs. UK Housing  Future Outlook 19.

  19. Slide 19: House Building Activity is the Key Driver for H+H Sales

    House Building Activity is the Key Driver for H+H Sales  Increase Mortgage Finance (depends on the banks)  Increase Affordability (further house price deflation or wage inflation)  Increase in Social Housing (depends on Government money)  Increase Land Supply (depends on changes in the planning

  20. Slide 20: Growth Strategy

    Growth Strategy Products Products & Solutions Blocks Aircrete Housing Buildings (Image of a house) Quoting m2 Proposing Packages 21.

  21. Slide 21: New Sales Approaches: Rå Build Example

    New Sales Approaches: Rå Build Example The masonry response to timber frame A weathertight masonry shell 22.

  22. Slide 22: Only UK manufacturer able to supply modern aircrete products

    Only UK manufacturer able to supply modern aircrete products Innovative Solutions Multi Plates (Large format aircrete) Horizontal Elements (Reinforced Aircrete) Vertical Elements (Reinforced aircrete) Mega Plates (Large format aircrete) 23.

  23. Slide 23: Profitability is heavily dependant on industry utilisation

    …but profitability is heavily dependant on industry utilisation UK Aircrete Industry Over Capacity 2011 Surplus (excluding 3 34% mothballed/closed plants) 2011 Sales 66% Total Surplus Industry Capacity Capacity Source: H+H Estimate 24.

  24. Slide 24: H+H UK for Investors

    H+H UK for Investors 10 September 2012 Mark Oliver MD H+H UK build with ease

H+H International — Investor Presentation (September 2012) on 6ix