H+H International

Earnings Release • Aug 15, 2023

Company announcement No. 541, 2023

15 August 2023

H+H lowers financial outlook for full-year 2023

The challenging market conditions and sales volumes that have fallen short of our expectations for July and up until today, lead to an update of our financial outlook for 2023.

CHIEF EXECUTIVE OFFICER JORG BRINKMANN QUOTE

"Despite a positive trend in Q2, we are trending behind our volume expectations in CWE and UK in July and August. On top of this, we are starting to see higher price competition in Germany. Consequently, our organic growth will be negatively impacted in H2, changing our guidance. We are using the current environment to improve our operations for the long-term. We are proactively driving the efficiency of our plant network by shifting volumes to higher efficient plants and increase their output. In parallel we are further streamlining our SG&A costs with a special focus on CWE and strengthening procurement to support the balance between price and cost. All these efforts will lead to an even stronger company for when the markets recover." says CEO Jörg Brinkmann.

Consequently, we anticipate a sales volume decrease of approximately -30% to -35% across our markets. The lower sales volume outlook directly impacts our financial outlook, with updated organic growth to be negative, ranging from -20% to -25%, down from the previous estimate of around -15% to -20%. EBIT before special items is now projected within the range of DKK 30-100 million, down from the previous estimate of DKK 100-175 million.

UPDATED FINANCIAL OUTLOOK FOR FULL-YEAR 2023

DKK Million	Updated	Previous
Organic growth	-20% to -25%	-15% to -20%
EBIT before special items	30-100	100-175

The financial outlook for 2023 is based on the following specific assumptions:

• Sales volumes expected to decrease around -30% to -35%
• Exchange rates, primarily GBP, EUR and PLN remain at end-July 2023 levels

Chief Executive Officer Chief Financial Officer

Jörg Brinkmann Peter Klovgaard-Jørgensen

For further information please contact

Niclas Bo Kristensen Head of Investor Relations and Treasury nbk@HplusH.com +45 24 48 03 67

Disclaimer

This document contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of H+H International A/S, may cause actual developments and results to differ materially from the expectations expressed in this document. In no event shall H+H International A/S be liable for any direct, indirect or consequential damages or any other damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other action, arising out of or in connection with the use of information in this document.

H+H International A/S's core activity is the manufacture and sale of wall building materials, with a revenue in 2022 of DKK 3,6 billion. The main product lines are aircrete blocks and calcium silicate units used for residential new build. H+H has 27 factories in Northern and Central Europe with a total capacity of more than 4 million cubic metres of products annually and has a leading position in most of its markets. H+H is listed on Nasdaq Copenhagen.