Annual Report (ESEF) • Mar 4, 2025
Preview not available for this file type.
Download Source FileHH International A/S H+H International A/S | CVR-no: 49 61 98 12 | LEI: 3800GJODT6FV8QM841 | Lautrupsgade 7, 5 th Floor. 2100 Copenhagen Ø Annual Report 2024 We are Partners in Wall Building H+H Internation al A/S | CVR-no: 49 61 98 1 2 | LEI: 3800GJ ODT6FV8QM8 41 | Lautrupsg ade 7, 5 th Floor. 2100 Copen hagen Ø Remuneration Report 2024 We are Partners in Wall Building Corporate Governance Statement 2024 H+H Internation al A/S | CVR-no: 49 61 98 1 2 | LEI: 3800GJ ODT6FV8QM8 41 | Lautrupsg ade 7, 5 th Floor. 2100 Copen hagen Ø We are Partners in Wall Building About this report Like last year H+H International A/S has prepared an integrated Annual Report and no longer publishes separate sustainability and financial reports. The Annual Report of H+H International A/S comprises both the consolidated financial state- ments of H+H International A/S and its subsid- iaries (the H+H Group). It has been prepared in accordance with the IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Unless otherwise stated, all figures in parenthesis refer to the corresponding figures in the prior year. The Annual Report 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, may cause actual developments and results to differ mate- rially from the expectations expressed in this document. In no event will H+H 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. In accordance with the Corporate Sustainability Reporting Directive (CSRD), the 2024 Annual Report has been prepared as one report, inte- grating the sustainability and financial reports and embedding the mandatory European Sustaina- bility Reporting Standards (ESRS). The sustain- ability statement is prepared in accordance with sections 99a and 107d of the Danish Financial Statements Act. The 2024 Annual Report is prepared using the ‘incorporation by reference’ method, where some required disclosures as per the ESRS are not included in the sustainability statement and are instead integrated into other parts of the Annual Report. Incorporation by reference Mandatory disclosures as per the ESRS which have been placed outside of the sustainability statement have been marked as such and are presented within the body of text with the disclo- sure requirement reference in header or sub header (e.g., E1-1), indicating that the column is referenced. A list of information and data points that have been placed outside of the sustainability state- ment can be found in the sustainability statement starting on page 48. Remuneration Report The Remuneration Report provides a specified overview of the remuneration received in 2024 by each member of the Board of Directors and of the Executive Board (i.e. the persons registered in the registry of the Danish Business Authority). The Remuneration Report has been prepared in accordance with section 139b of the Danish Companies Act and will be presented for an advisory vote at the annual general meeting on 8 April 2025. Corporate Governance Statement The statutory Corporate Governance Statement forms part of the management's review in the Annual Report for 2024 for H+H International A/S and includes the status of compliance with the ‘Recommendations for Corporate Governance’ issued by the Danish Committee on Corporate Governance in December 2020 and implemented by Nasdaq Copenhagen. Read more Remuneration report Read more Corporate governance statement H+H International | Annual Report 2024 | 2In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents Purpose and promises We enable better homes for our communities Partners in Wall Building Being a part of H+H means you are in the business of people and teamwork. Our partners trust us to understand their building needs from design, specification and planning to delivery, assembly and problem solving. With our partners, we enable better homes for our communities. Putting people first The health and safety of our people, suppliers and customers, will never be compromised. We are committed and have the ambition of zero harm for our own and our partners’ people. We know that people are different. We trust our differences enable us to see new opportunities and be more effective. People are the heart of H+H. Performance driven H+H strives to deliver results to all our partners and in the communities where we operate. Even when times are difficult, we deliver quality products with the highest level of service to our customers. Our operations run timely and effectively. We follow through on our commitment to serve our commu- nities. You can trust us to deliver on our promises. Pushing the boundaries To build better homes, we must stay curious and eager to drive our industry forward. We are continuously improving oper- ations and products. Together with our partners we rethink supply chains, services and digital solutions. We are pushing to meet the needs of tomorrow. Part of a sustainable future Today we work with our partners to reduce energy needs in homes and our commitment is more than the long lasting and insulating products we produce. We are part of the solution in creating sustainable and carbon neutral buildings. We are partnering with our customers, suppliers, and other stakeholders; finding new production methods to lower the environmental impact of homes. We act today to realise our vision of carbon neutrality in 2050. H+H International | Annual Report 2024 | 3In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents Table of Contents Management’s review In brief 5 Business and strategy 16 Results 26 Governance 35 Sustainability statement 48 Financial statements Consolidated financial statements 89 Notes 93 Statements 131 Contact information 139 Other 2024 reports Remuneration Report Corporate Governance Statement Results Page 26-34 Business and strategy Page 16-25 Sustainability statement Page 48-87 H+H International | Annual Report 2024 | 4In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements In brief 6 H+H at a glance 7 Performance highlights 8 Five-year summary 10 Letter from the Chair 12 Letter from the CEO 14 Equity story 15 Outlook H+H International | Annual Report 2024 | 5In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 31% 32% 37% Central Western Europe The United Kingdom Poland Headquarters CSU AAC H+H at a glance H+H is a leading provider of wall- building solutions, committed to being the ideal partner for every project. With a strong market presence, we leverage industry insights and customer expertise to solve challenges and provide better homes for our communities, positioning H+H for future growth. Climate 28% By 2030, we want to reduce absolute scope 1 and 2 GHG emissions by 46% from a 2019 baseline. As of 2024, we have achieved a 28% improvement of CO 2 kg/m 3 . By 2050, we want to achieve net zero emissions from own operations and supply chain. People 1,337 Based across Northern Europe we employ over 1,300 people, of whom around 70% work in our plants. Plants 27 In 2024, we reopened one of our four mothballed plants in response to market demands. Across all active plants we produced a total of 2.7 million cubic meters of wall- building materials in 2024. Markets Share of revenue Revenue (DKKm) 2,747 In 2024, we generated total revenue of DKK 2,747 million and organic growth of 0%. H+H International | Annual Report 2024 | 6In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Performance highlights SustainabilityFinancial Gross margin DKKm EBIT before special items DKKm Financial gearing DKKm 0.9 In 2024, we achieved our lowest ever LTIF rate of 0.9. Organic growth Percent EBITDA before special items DKKm Free cash flow DKKm Climate – Reduction in scope 1 and 2 emissions Safety – Lost time incidents frequency (LTIF) 13% We achieved 13% lower scope 1 and 2 emissions compared to last year, making us well-aligned and on track with our Science Based targets. 0% Sales volume increased by 8%. This was offset by country mix effects and lower prices. 250 In 2024, EBITDA before special items was DKK 250 million corresponding to a 9% margin, which is unchanged from last year. 219 Free cash flow was DKK 219 million, up from a negative DKK 346 million last year, driven by land sales in Poland and destocking. 21% Gross margin was 21% and on par with 2023. Gross profit was DKK 579 million. 63 EBIT before special items amounted to DKK 63 million compared to DKK 57 million in 2023, corresponding to EBIT margins of 2% in both 2023 and 2024. 2.7x Net interest-bearing debt was DKK 682 million as of end-2024, down DKK 205 million from last year. See all about of our sustainability performances on page 9 H+H International | Annual Report 2024 | 7In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Five-year financial summary Income statement (DKK million) 2024 2023 2022 2021 2020 Revenue 2,747 2,672 3,604 3,020 2,654 Gross profit bsi 579 564 1,020 905 836 SG&A 331 346 392 329 319 EBITDA bsi 250 244 657 591 521 EBITDA 228 58 615 567 521 EBIT bsi 63 57 455 408 332 Special items (22) (287) (31) - - EBIT 41 (230) 413 377 332 Result before tax (29) (283) 398 356 307 Result after tax for the year (50) (246) 317 321 251 Balance sheet (DKK million) 2024 2023 2022 2021 2020 Assets 3,473 3,454 3,572 3,400 2,909 Invested capital 1 2,146 2,435 2,142 1,852 1,865 CAPEX 2 156 197 293 223 155 Acquisition and divestment of enterprises - - - 238 72 Net working capital 144 359 242 65 55 Equity 1,650 1,678 1,938 1,814 1,509 Net interest-bearing debt (NIBD) 682 887 492 350 230 Cash flow (DKK million) 2024 2023 2022 2021 2020 Cash flow from operating activities 145 (209) 316 454 425 Cash flow from investing activities 74 (137) (255) (427) (206) Cash flow from financing activities 103 131 (80) (25) 6 Free cash flow 219 (346) 61 27 219 Financial ratios and others 2024 2023 2022 2021 2020 Sales volume (thousand m 3 ) 2,967 2,745 4,187 4,326 4,022 Organic growth 0% (25%) 14% 13% (6%) Gross margin bsi 21% 21% 28% 30% 31% EBITDA margin bsi 9% 9% 18% 20% 20% EBITDA margin 9% 2% 17% 19% 20% EBIT margin bsi 2% 2% 13% 14% 13% EBIT margin 1% (9%) 11% 12% 13% Return on invested capital (ROIC) (excl. Goodwill) 3 2% (9%) 19% 20% 18% Solvency ratio 45% 46% 52% 50% 50% NIBD/EBITDA before special items ratio 2.7x 3.6x 0.7x 0.6x 0.4x 2020 - 2021 numbers have not been adjusted to the change in accounting policy for presenting cash pool. CAPEX includes leasing expenditures accounted according to IFRS 16. Due to acquisitions the method for calculating Return on invested capital (ROIC) has changed to better reflect a true and fair view. ROIC for the period 2020-2021 has been calculated as Operating profit (EBIT) relative to average invested capital (excluding goodwill) on a twelve-month basis. Note: Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts. See page 121. H+H International | Annual Report 2024 | 8In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Five-year sustainability summary Environmental data UoM 2024 2023¹ 2022¹ 2021¹ 2020¹ CO 2 e scope 1 Tonnes 81,884 93,602 142,796 132,345 121,598 CO 2 e scope 2 - market based Tonnes 6,885 15,198 33,454 59,461 56,765 CO 2 e scope 2 - location based Tonnes 25,522 29,369 45,702 CO 2 e scope 3 Tonnes 394,435 442,582 688,192 673,554 624,247 Total GHG emissions - market based Tonnes 483,205 551,381 864,442 865,360 802,609 CO 2 e scope 1 kg/m 3 30 31 33 31 32 CO 2 e scope 2 - market-based kg/m 3 3 5 8 14 14 CO 2 e scope 3 kg/m 3 144 146 157 157 157 Total GHG emissions per m 3 kg/m 3 177 182 198 202 203 Total GHG emission per net revenue Tonnes/Mil. DKK 176 206 240 287 302 Energy consumption GJ 1,501,325 1,749,942 2,487,149 2,380,949 2,195,301 Energy consumption MWh 417,035 486,095 690,875 661,375 609,806 Natural gas MWh 254,804 315,096 418,262 Coal MWh 98,894 92,588 146,867 Oil MWh 1,754 12,458 26,253 Fossil steam and electricity MWh 17,929 41,109 65,722 Renewable electricity MWh 43,653 24,843 33,770 Percentage renewable % 10% 8% 5% 0% 0% Total energy per m 3 MJ 549 575 567 554 551 Energy intensity per net revenue MWh/Mil. DKK 152 182 192 219 230 Production volume Million m 3 2.7 3.0 4.4 4.3 4.0 * ESG figure subject to limited assurance in 2023 ¹ Not covered by the Independent Auditor’s limited assurance report Social data UoM 2024 2023¹ 2022¹ 2021¹ 2020¹ Employees Headcount 1,337 1,355 1,739 1.,633 1,571 Gender diversity % 17% 18% 16% 16% 15% Gender diversity, office workers % 46% 45% 41% 47% 47% Gender pay gap (Average) % -17% -6% 7% 10% 15% CEO Pay Ratio Times 34 29 32 37 35 Employee turnover ratio % 22% 40% 15% 13% 14% Employee turnover Headcount 280 605 267 206 217 Sickness absence Days per FTE 12 14 13 12 13 Sickness absence, short-term Days per FTE 8 10 11 10 11 Fatalities Headcount 0 0 0 0 0 Lost-time Incident frequency (LTIF) Incident per mil 0.9 3.4 3.6 5.5 5.7 Total recordable incidents Number of 7 18 77 103 105 Total recordable contractor incidents Number of 0 0 3 3 2 Total recordable incident rate (TRIR) Incident per mil 3 7 25 35 38 Recordable work-related ill health Number of 0 0 Gender diversity, Board % 29% 29% 33% 17% 17% Gender diversity, Top management % 0% 0% H+H International | Annual Report 2024 | 9In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Navigating the downturn and building a stronger foundation Letter from the Chair The past two years have tested the housebuilding industry in ways few could have predicted. The severe downturn in new-build activity, driven by rising interest rates and economic uncertainty, has reshaped our industry, forcing companies to adapt rapidly. At H+H, we have navigated this challenging period with resilience and discipline, making difficult but necessary decisions to ensure the company remains strong and prepared for the future. While we are seeing early signs of stabilisation in some markets—particularly in the UK and Poland—the overall environment remains uncer- tain, with Germany still experiencing headwinds. As a business operating in a cyclical industry, we fully acknowledge that our performance is closely tied to market conditions. The timing of interest rate adjustments and broader economic recovery will ultimately determine when demand rebounds. However, what we can control is how we respond—and over the past two years, we have built a more stable, efficient, and financially resilient H+H. Resilience built for the long term While the external environment remains uncer- tain, H+H has taken decisive action by adjusting its cost base and streamlining operations to enhance efficiency in a low-volume scenario. Kent Arentoft Chair Streamlining efforts, including plant closures, workforce reductions, and network optimisa- tion, have delivered essential cost savings and strengthened our financial position. A key focus in 2024 was strengthening our balance sheet. The strategic divestment of a non-operational production site in Poland for PLN 110 million combined with several initiatives to improve our free cash flow, has reduced net debt and reinforced our capital structure. By year-end, financial gearing stood at 2.7 times EBITDA before special items, bringing it closer to our long-term targets. Going forward, we will continue to evaluate our capital projects to ensure that they align with our commitment to enhance the efficiency of our existing assets. H+H International | Annual Report 2024 | 10In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Delivering on our ESG promises We will remain focused on enhancing business operations while contributing to the green transi- tion and reducing emissions. Responsibility is at the core of everything we do, driving our commit- ment to lowering emissions and operating with integrity. In 2024, we made significant progress, achieving notable reductions in scope 1 and 2 emissions and improving our important incident frequency ratio – clear reflections of our dedica- tion to environmental and operational excellence. Addressing CO 2 emissions in the building industry is essential, and our products are well-suited for long-term growth as they enable energy-efficient construction and reduce the life-cycle emissions of buildings. In collaboration with our partners, we focus on solutions and innovation for carbon-neu- tral buildings. Reaching our long-term financial targets As we move into 2025, uncertainties to the pace of economic growth and consumer spending persist, and we expect market conditions to remain chal- lenging in the near term. However, we are encour- aged by emerging positive trends in some of our key markets and our recent restructuring has created a more resilient business, positioning us to better withstand declining volumes and market fluctuations. Together, these factors strengthen our confidence and support our long-term finan- cial targets of achieving a 12% EBIT margin and a 16% Return on Invested Capital (ROIC). Closing remarks On behalf of the Board of Directors, I would like to extend my deepest gratitude to our employees for their dedication, resilience, and hard work during a challenging year. I also want to thank our customers and partners for their trust and collab- oration. Together, we now look forward to shaping the future of H+H. Kent Arentoft Chair Long-term financial targets EBIT margin Return on invested capital (ROIC) Financial gearing (Net interest-bearing debt to EBITDA) 12% 16% 1-2x Please see page 25 for long-term target assumptions H+H International | Annual Report 2024 | 11In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Prepared for future growth Letter from the CEO With the streamlining of our organisation over the last two years, we enter 2025 on a stronger and more competitive foundation, well positioned to capitalise on the growth opportunities within our markets. Shaping the German business for growth A key focus for us in 2024 was to further streamline our German organisation and strengthen the foundation of the business. This involved difficult but necessary decisions – including the closure of underperforming plants, a reduction in SG&A expenses and the painful but necessary step to reduce our workforce. These decisions were driven not only by short-term capacity adjustments, but follow a long-term strategic plan to leverage our plant network and organi- sation in total. Under the umbrella of Project ONE we have redesigned the German business model. Project ONE is designed to deliver great customer experience and higher profitability within the region through a more streamlined and agile organisation. After many years of acquisitions in Germany we have integrated the business into ONE customer centric organisation, now ready to drive consolidation synergies. We believe that the German market still offers future consolidation options, and ONE is the platform and integration blueprint for future acquisitions and joint ventures, ensuring faster payback of the targeted synergies. Jörg Brinkmann CEO In 2024, new-build activity remained low across our markets, driven by a weak European economy and unfavourable financing conditions. While Poland and the UK showed some positive momentum, the German market continued to decline, requiring further streamlining measures. As a business operating in a cyclical industry, we found ourselves at the lowest point of the cycle. In this environment, we delivered organic growth of 0%, and an EBIT before special items of DKK 63 million, highlighting the continued need for further measures to improve the profitability and resilience of H+H. H+H International | Annual Report 2024 | 12In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements HOME – H+H Operating Model of Excellence Over the last two years we have significantly adjusted the plant network of the company. In total we have closed five and mothballed three plants. All decisions we have taken were based on a new oper- ating model for the company. Under the HOME (H+H Operating Model for Excellence) initiative we are driving uptime of our plants, continuous improvement and debottlenecking. By doing this we are gradually improving the output of our plants, avoiding large exten- sions or greenfield investments. With HOME our current network offers 30% more capacity, ready to be unlocked when markets pick up again—step by step, at higher efficiency levels, ensuring an improved competitive advantage in our regional markets. Mission Zero – Safety and the green transition remain at the core of everything we do The safety of our employees, customers, and contractors remains our highest priority. We firmly believe that every accident is prevent- able and, in 2024, launched our new Group Safety Programme, ZERO HARM, which primarily focuses on the behavioural aspects of safety. We are proud that ZERO HARM has delivered remarkable results in its first year. With an LTIF rate of 0.9, we have achieved a record low, setting a new benchmark within our industry. We remain committed to supporting the environmental transforma- tion of European cities and communities by developing products and applications that increase energy efficiency and lower the lifecycle emissions of buildings. This is also a critical area of growth as the industry shifts towards greener solutions. In 2024, our total GHG emissions declined by 12%, and we have an ambition to further improve our operations in line with our science-based targets. Profitable growth After two years of streamlining, H+H has evolved into a stronger, leaner, and more resilient company, better positioned to navi- gate future challenges and capitalise on a market rebound. The adjustments we have made ensure sustained profitability, even in a low-volume market, setting us up for long-term success. Encouragingly, some markets are showing signs of recovery. In the UK, we decided to reopen our mothballed plant in Pollington in Q4 2024. This will help meet rising demand and build stock in preparation for further growth in 2025 and beyond. I am excited about the next chapter for H+H. As we move forward, both our customers and employees will harvest the rewards of our hard work and dedication. I sincerely appreciate the efforts of our employees and the loyalty of our customers—your support has been invaluable. We look forward to building on this collaboration in 2025. Jörg Brinkmann Chief Executive Officer After two years of streamlining, H+H has evolved into a stronger, leaner, and more resilient company, better positioned to navigate future challenges and capitalise on a market rebound. The adjustments we have made ensure sustained profitability, even in a low-volume market, setting us up for long-term success H+H International | Annual Report 2024 | 13In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 32 41 5 6 Equity Story As a European leader in wall building, we are strategically positioned to capitalise on structural growth drivers in the housing industry, including the shift towards modern and energy-friendly buildings. H+H's key investment highlights build on six pillars: Leading position in wall building With a leading market share, strong plant network, solid customer relationships and high entry barriers, H+H is positioned to grow its market presence Strong housing demand waiting to be unlocked H+H is well positioned to capitalise on rising housing demand across core markets, where AAC and CSU increasingly constitute the materials of choice Agile operating model to meet future demand The H+H Operating Model of Excellence (‘HOME’) is designed to meet Europe’s volume demands by increasing capacity within the existing plant network Material of choice: today and tomorrow Materials meet modern housing needs and by combining a decarbonisation strategy with the recarbonation properties of limestone, H+H can produce blocks with a negative carbon footprint Platform for future M&A Proven M&A platform with efficient integration processes and an agile organisation, allowing H+H to scale and achieve synergies Improving financial performance and outlook The company’s recent streamlining has created a more resilient business, allowing H+H to better withstand market fluctuations and challenges H+H International | Annual Report 2024 | 14In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Outlook Organic growth 5% to 10% (2024: 0%) Revenue measured in local currencies is expected to be in the range 5% to 10%. EBIT before special items (DKKm) 120 to 160 (2024: DKKm 63) EBIT before special items is expected to be in the range of DKK 120 to 160 million. Organic growth Organic revenue growth for 2025 is expected to be in the range between 5% to 10%, driven by price increases aligned with cost inflation and modest volume growth, primarily in the UK. The outlook does not assume a market recovery in Germany. EBIT before special items EBIT before special items is expected to range between DKK 120 to 160 million. The improvement over 2024 is primarily driven by continued business streamlining, modest volume growth, and impact from structural improvements. Other assumptions • The 2025 average FX rates are based on February's 2025 actual average and the forward FX rates for the next 10 months. • CAPEX of around DKK 200 million. • Stable macroeconomic and geopolitical development. • Price dicipline within our key markets. Forward looking statements Forward-looking statements are subject to risks and uncertainties that may cause the Group’s actual results to differ significantly from those expressed in such statements. Therefore, they should not be regarded as a guarantee of future performance. For the full forward-looking statements disclaimer, please refer to page 2. In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International | Annual Report 2024 | 15 Business and strategy 17 Our industry 18 Our products 19 Business model 20 Strategic focus areas and progress 25 Long-term targets H+H International | Annual Report 2024 | 16In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Our industry We are a leading European provider of wall-building solutions and materials, serving contractors, developers, volume housebuilders, and builders’ merchants. Our industry is highly cyclical, influenced by macroeconomic fluctuations and evolving carbon emissions regulations. At the same time, the markets we operate in are experiencing a significant housing shortage, driving demand for efficient and sustainable building solutions. An industry exposed to cyclicality The industry is influenced by a range of factors, including interest rates, which affect borrowing costs for developers and buyers, and general economic growth, which impacts demand for housing. Population growth, urbanisation and shifts in household formation also play a role in driving the need for new homes. Additionally, government policies, incentives and regulatory frameworks, such as sustainability requirements, influence the pace and focus of construction activity across the regions. In recent years, rising inflation and higher interest rates have slowed building activity despite strong housing needs. Weaker market conditions have led to plant closures, production cutbacks and workforce reductions, reducing capacity across the sector. As the market stabilises, this contrac- tion may create supply constraints when demand recovers. Companies with resilient operations and optimised production will be best positioned to seize future growth opportunities. Carbon-friendly wall-building solutions To support sustainable development of housing, the wall-building industry is met with more and more tight requirements as regards to carbon emissions. The increasing focus on life cycle analysis – or whole life carbon assessment – is a benefit for AAC and CSU products, whether this is driven by customer demands or legislation across our markets. The European Autoclaved Aerated Concrete Association (EAACA) highlights that, through the combination of the industry’s decarbonisa- tion strategy and the carbon capture abilities of limestone products as AAC and CSU, it is possible to produce blocks that absorb more carbon during its lifetime than what is emitted during the production of the products. This reinforces the fact that our products are, and will continue to be, part of the solution for creating sustainable housing. The need for more homes A significant housing shortage persists across all our markets despite widespread political recog- nition of this issue. Governments consistently fall short of meeting their targets, with the UK aiming for 300,000 new homes per year and Germany targeting 400,000 annually. While the industry has the capacity and expertise to contribute significantly to solving the housing shortage, unlocking this potential requires broader changes at the macroeconomic or polit- ical level. Policy adjustments, economic incen- tives or regulatory reforms are essential to create the conditions needed for scaling up housing development and fully utilising the industry’s capabilities. H+H International | Annual Report 2024 | 17In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Our products H+H's core activities are the production and sale of autoclaved aerated concrete (AAC or aircrete) and calcium silicate (CSU or sand lime bricks). The products are building blocks used for wall building, foundations and precast wall panel solutions, primarily in the residential new-build segment. Key trends for building materials H+H product portfolio highlights Highlights Products & services Lasting durability, superior insulation and a reduced carbon footprint through carbon capture storage Easy to transport, to assemble and cost effective, offering speed and low cost to maintain the wall Superior fire resistance and structural engineering ensuring enhanced safety Advanced solutions accelerate serial construction by reducing labour intensity, making it both faster and more cost-efficient Planning tools optimising wall layouts to minimise on-site cutting, ensure timely material deliveries and streamline the process from plan to wall Autoclaved Aerated Concrete (AAC), used for single-family homes Thermal block and Multi-element to shorten construction times Calcium Silicate Units (CSU), used for multifamily urban housing Planning Tool to minimise planning effort Long-lasting Affordability Safety Standardisation Digitalisation H+H International | Annual Report 2024 | 18In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements • Sand, water and lime • Cement and aluminium added for AAC • Strong plant network with national coverage • Lean manufacturing process to improve efficiency and eliminate waste • Targeted capital investments improve reliability and quality across the production platform • Continuous improvements to deliver sustainable margins • Full wall solution selling • Support of customers in early planning stage • Optimisation of building process • Cooperation with planners, installers, architects, distributors and house builders • One-point of contact • One-stop shop for wall building • Reliable and timely delivery • Multifunctional, easy-to- install products with minimal maintenance and cost-effective materials • Fire-resistant, rot- and mould- proof product • Long life-time expectancy Partnerships Delivery Key featuresManufacturingKey raw materials Efficient manufacturing Attractive geographical setup Partners in wall building One-stop shop for every wall building project Enabling better homes Diverse and flexible solutions for various applications Business model The business model is prepared in accordance with SBM-1 We focus on providing safe and affordable solutions and materials for wall building H+H International | Annual Report 2024 | 19In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Strategic focus areas and progress H+H operates a balanced network of 27 plants across three core European markets, split into two product lines. Over the past two years, we have optimised our production network, enhancing efficiency and expanding capacity. Building on this foundation, we remain committed to growth while prioritising employee safety and driving down CO 2 emissions. HOME: H+H Operating Model of Excellence Project ONE: Improving process landscape in CWE Mission Zero: Zero Harm and Zero Carbon HOME enhances efficiency, increases capacity and optimises plant use. Our existing plant network have the potential to deliver up to 6,000 tm³, representing a 30% increase in capacity from today’s volumes. It engages employees, standard- ises operations and drives continuous improve- ment. Through lean manufacturing and debottle- necking, HOME ensures high-volume production and long-term scalability. Project ONE is a targeted initiative in Germany aimed at improving profitability by enhancing customer experience and streamlining opera- tions. Project ONE also creates a strong framework for efficiently integrating future acquisitions and joint ventures. H+H is committed to supporting the environ- mental transformation of European cities by developing energy-efficient, low-emission building solutions. This is also a critical area of growth as the industry shifts towards greener solutions. We also prioritise safety, striving for a zero-in- cident workplace for employees, visitors and contractors, believing every accident is prevent- able. H+H International | Annual Report 2024 | 20In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements As a company operating in a cyclical industry, we have a key focus on being able to adapt our business to changing market conditions. Our current plant network and production setup is well-equipped to efficiently manage historically high production volumes. The network presents a valuable opportunity to realise further benefits from our new operating model developed in 2024 and labelled the H+H Operating Model of Excel- lence (HOME). By consolidating production in larger, more efficient plants, we can leverage economies of scale to achieve cost savings while maintaining peak output with fewer plants. Once HOME is fully implemented, our existing plant network will have the potential to deliver up to 6,000 tm³, representing a 30% increase in capacity from today’s volumes. This will be driven by increased operational uptime and targeted debottlenecking investments, ensuring sustained high-volume production with a leaner footprint. Implementation will commence in 2025 at selected flagship sites, followed by a phased rollout across the network. HOME: H+H Operating Model of Excellence These efforts aim to increase operational effec- tiveness and expand capacity to better serve our customers. Additionally, the operating model will play a key role in realising synergies from future strategic M&As, further consolidating and opti- mising the network. Streamlining Over the past two years, our streamlining efforts have led to significant financial improvements, generating substantial cost savings compared to 2022. These efforts have positioned the company to operate more effectively in a low-volume scenario while enhancing resilience during busi- ness cycles. To further improve margins, we are committed to continuous improvement initiatives aimed at The main purpose of the H+H operating model is: • Engaging the workforce: Developing a daily operational framework that actively involves employees in driving improved output - SBM-3 • Standardising operations: Establishing consistent procedures, systems and a portfolio of standard work for both oper- ators and leaders to ensure alignment across sites. • Measuring and improving performance: Introducing common critical metrics to track and enhance operational perfor- mance. • Promoting continuous improvement: Providing tools for problem-solving, process optimisation and the sharing of best practices, utilising the knowledge and experience of our people - SBM-3 optimising asset utilisation and unlocking addi- tional capacity, driving greater efficiency and productivity. By adopting a lean manufacturing approach, we are improving effectiveness and operational uptime through targeted actions that increase output, reduce waste and improve product quality. Similarly, targeted investments in debottlenecking will provide significant steps towards meeting increased demand. These investments require relatively low capital expenditure and offer an attractive payback period. Looking ahead, these efforts will enable us to meet growing demand, deliver the required volumes to support our customers and deliver excellent customer service. Focusing on plant uptime in 24/7 growth mode to boost volume and productivity through engaging first-line management with operators Enhancing efficiency and reliability using lean tools, automation, recipe optimisation and portfolio rationalisation Strategic investments in specialised equipment to boost capacity (step change) and enhance efficiency Uptime Continuous improvement Debottlenecking H+H International | Annual Report 2024 | 21In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements In 2018, H+H Germany began an M&A journey, expanding from three to 14 plants by 2022 through five acquisitions and joint ventures. Each brought its own culture, processes and complex- ities, leading to higher operational costs. While commercial integration occurred, full integration was delayed during market growth. With the market downturn in 2023-2024, stream- lining became essential to create a unified platform. Project ONE focused on automation, simplicity and transparency, guided by lean meth- odologies to reduce manual work, standardise processes and streamline IT systems. With the simplification and improvement of our operating model we have enabled cost reductions and increased administrative capacity, thereby opti- mising the existing business for long-term growth. A clearly defined operating model will also serve as a strong blueprint for integrating future acqui- sitions and joint ventures in the CWE region. Deep dive – Project ONE Project ONE has made a real difference — fewer manual tasks, clearer processes and a smoother workflow. Everything is more streamlined, allowing us to focus on serving customers better. Michael Rygas, External Sales, H+H Deutschland During 2024, we launched Project ONE, a targeted initiative in Germany designed to improve profitability within the region by enhancing customer experience and having a simpler, more streamlined company. Over the past years, we have not always fully capitalised on the potential of our acquisitions. Project ONE is designed to address this by establishing a robust framework for efficiently integrating future acquisitions and joint ventures, strengthening our ability to drive consolidation and grow within Germany. Project ONE: Improving CWE Standardisation Automation Centralisation Efficiency gains Product offering streamlined Number of carriers significatly reduced and freight planning automated Number of employees reduced by almost 40% SG&A costs reduced by 50% H+H International | Annual Report 2024 | 22In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Zero Harm - SBM-1 | ESRS 2 SBM-3 We believe that everyone should come to work and return home free of injury. We are committed to and have the ambition of zero harm for all who work in our plants and on our sites. In 2024, we launched our Health & Safety strategy, ZERO HARM, for 2024-2026, focusing on behaviour-based safety and on embedding a safety-first culture across all operations. All plants have implemented and monitor safety improve- ment plans, supported by regular audits to ensure effectiveness. Key H&S metrics are tracked monthly, and lessons from incidents are shared across the organisation to prevent recurrence. Looking ahead, we are committed to further strengthening our safety culture through proac- tive training, communication and hazard identifi- cation, driving progress toward our ultimate goal of zero harm. Our focus on safety delivered outstanding results in 2024. We are proud to have achieved seven consecutive injury-free months in 2024, with our LTIF rate reaching a record low, from 3.4 in 2023 to 0.9 per million hours worked in 2024. These achievements reflect the dedication of our teams and the strength of our safety culture. Mission Zero: Zero Harm and Zero Carbon Zero Carbon - SBM-1 | E1-1 Our vision for green transition and reducing our carbon emissions is based on a whole life assess- ment of our products. This is a process which evaluates the effects that a product has on the environment over the entire period of its life. Our business model and strategy actively support the green transition by reducing our carbon emissions in alignment with our validated Science Based Targets. From a whole life perspective we want to achieve net zero emissions of our prod- ucts and we believe that with our business model and strategy, we will be able to achieve this by 2050. In 2024, our carbon emissions fell to a record low. Our plants are now consuming 100% renewable electricity, and a dedicated amount of the CAPEX budget is annually allocated to support emission reduction projects. We have successfully reduced our scope 1 and 2 by 13% compared to 2023 remaining well within the 1.5-degree trajectory. Intensity of our scope 3 emissions were 1% lower compared to 2023 (and 11% lower compared to baseline 2019). Our total GHG emissions were 483,205 tons, which is 12% lower than 2023. LTIF rate Zero incidents 100% renewable electricity 12% lower GHG emissions in total than 2023 0 2014 2016 2018 20222020 2024 15 12 9 6 3 H+H International | Annual Report 2024 | 23In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 Zero Carbon - SBM-1 | E1-4 Carbon capture storage inside (CCS inside) Due to the natural carbon capture abilities of our blocks, the whole life emissions for a block become significantly lower as they absorb CO 2 during their lifetime. Our AAC products act like a dried-out sponge – absorbing CO 2 from the atmosphere. With the improvement in sustainable production and carbon capture and storage (CCS), we will be able to produce blocks with a negative CO 2 foot- print 10-20 years from now due to the carbon capture process. * Made from approximately 30 m 3 AAC blocks A standard house absorbs over 2.3 tons of CO 2 over its lifetime from aircrete, equivalent to the absorption of 90 trees. 2019 – Starting point When we started our SBTi journey, an average H+H block emitted 210 kg CO 2 (gross) before landing on a building site. With its natural carbon capture storage (CCS) abilities, a block would over a lifetime emit net 130 kg. Scope 1+2+3 ~ 210 CCS ~ 75 kg Whole life emissions ~ 130 kg (net) 2024 – Present In the past five years we have improved our emissions, reducing the amount by 31 kg through renewable electricity and more effi- cient production. Blocks produced in 2024 therefore already emit lower emissions during their lifetime compared to blocks produced in 2019. Whole life emissions ~ 100 kg (net) 2030 – Target We plan to improve our energy mix and increase the use of low-carbon binder mate- rials, giving a further reduction of 26 kg. In 2030, the whole life emissions of a block will be approx. 75 kg. Whole life emissions ~ 75 kg (net) 2050 – Vision Based on roadmaps from our suppliers, our blocks will from a whole life perspective have a negative carbon footprint by latest 2050, positioning our products as the core solution for sustainable wall building mate- rials. Whole life emissions ~ negative 50 kg (net) H+H International | Annual Report 2024 | 24In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Long-term targets We remain committed to our long-term financial targets. This is based on expectation of a market recovery across our geographical footprint over the coming years. With current internal initiatives we will leverage our asset base by consolidating volumes into more efficient plants. This will also help us become more resilient to swings in the macroeco- nomic development. Our sustainability commitment is supported by validated reductions in scope 1, 2, and 3 GHG emissions by 2030, with the ultimate goal of achieving net zero no later than 2050. . Climate targets Financial targets EBIT margin H+H commits to reducing absolute scope 1 and 2 greenhouse gas emissions by Return on invested capital excl. goodwil H+H commits to reducing scope 3 greenhouse gas emissions by Financial gearing Net interest-bearing debt to EBITDA H+H commits to achieving net zero emissions in our operations and products by by 2030 compared to 2019 per kg CO 2 e/m 3 by 2030 compared to 2019 12% 46% 16% 22% 1-2x 2050 H+H International | Annual Report 2024 | 25In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Results 27 Full year financial review 29 Q4 2024 results 30 Geographical footprint 31 Central Western Europe 32 Poland 34 The United Kingdom H+H International | Annual Report 2024 | 26In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Full year financial review Income statement Revenue Total revenue increased by 3% to DKK 2,747 million compared to DKK 2,672 million in 2023. Organic growth was 0% in 2024. Organic growth was driven by higher sales volumes and offset by sales prices and country mix. Revenue in Central Western Europe amounted to DKK 1,030 million compared to DKK 1,256 million in 2023. The decrease amounts to an organic growth of negative 18%. Revenue in the UK amounted to DKK 871 million compared to DKK 763 million in 2023. Organic growth was positive by 11%. Revenue in Poland was DKK 846 million compared to DKK 653 million in 2023. Organic growth was positive by 23%. Gross profit before special items Gross profit was DKK 579 million compared to DKK 564 million in 2023, corresponding to gross margins of 21% in both 2023 and 2024. Both 2023 and 2024 were impacted by higher energy costs related to the gas contract settled in Q1 2024. 2024 was also impacted by de-stocking initiatives, offset by better utilisation of our plant network. EBITDA bsi EBITDA before special items in 2024 increased by 3% to DKK 250 million compared to DKK 244 million in 2023, corresponding to EBITDA margins of 9% in both 2024 and 2023. Depreciation and amortisation Depreciation and amortisation amounted to DKK 187 million compared to DKK 187 million in 2023. Depreciation for buildings decreased as a result of plants closed down during 2023 and sold in 2024, while depreciation for machines and production equipment increased as a result of upgrades completed during the year. EBIT bsi EBIT before special items amounted to DKK 63 million compared to DKK 57 million in 2023, corre- sponding to EBIT margins of 2% in both 2023 and 2024. Special items Special items costs, net amounted to an expense of DKK 22 million in 2024 compared to an expense of DKK 287 in 2023. Special items primarily consist of the settlement costs of the gas contract, restructuring costs, and gains from the sale of land and buildings in Poland. Please refer to Note 7 for more information. EBIT EBIT was DKK 41 million in 2024 compared to negative DKK 230 million in 2023. Net financials Net financials amounted to an expense of DKK 70 million in 2024, compared to an expense of DKK 53 million in 2023. The development is mainly driven by an increase in interest expenses from higher interest rates and debt position during the year. Result before tax Result before tax amounted to a loss of DKK 29 million compared to a loss of DKK 283 million in 2023. Tax Tax for the year amounted to a net expense of DKK 21 million compared to a net income of DKK 37 million in 2023 driven by the improved result in 2024 compared to 2023. Result for the year Result for the year was negative DKK 50 million, compared to negative DKK 246 million in 2023. Loss for the period is attributable to H+H Interna- tional A/S’ shareholders by DKK 53 million and a profit to non-controlling interest by DKK 3 million compared to a loss of DKK 248 million and a profit of DKK 2 million, respectively, for 2023. Comprehensive income Other comprehensive income for 2024 was positive DKK 25 million compared to DKK 3 million in 2023. The year-on-year movement was a result of actuarial gain net of tax of DKK 8 million and loss in fair value adjustment of derivative finan- cial instruments of negative DKK 3 million and a positive development in foreign exchange rates of DKK 20 million. H+H International | Annual Report 2024 | 27In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Cash flow Operating activities Cash flow from operating activities before finan- cial items and tax amounted to cash in-flows of DKK 279 million in 2024 compared to cash out-flows of DKK 110 million in 2023. The improve- ment in operating cash flows is mainly due to improved earnings and destocking initiatives. Total cash flow from operating activities in 2024 was a cash in-flow of DKK 145 million compared to a cash out-flows of DKK 209 million in 2023. Investing activities Cash flow from investing activities in 2024 amounted to a net cash in-flow of DKK 74 million compared to a net cash out-flow of DKK 137 million in 2023. The cash in-flow in 2024 is mainly driven by the sale of land of buildings in Poland offset by CAPEX investments. Financing activities Cash flow from financing activities amounted to cash in-flows of DKK 103 million in 2024 compared to cash in-flow of DKK 131 million in 2023. Balance sheet On 31 December 2024, the balance sheet total amounted to DKK 3,473 million compared to DKK 3,454 million on 31 December 2023 mainly driven by shifts in the net debt position partly offset by a decrease in inventories of DKK 222 million. Net interest-bearing debt Net interest-bearing debt amounted to DKK 682 million as of 31 December 2024 corresponding to a decrease of DKK 205 million since 31 December 2023. On 31 December 2024, financial gearing was 2.7 times net interest-bearing debt to EBITDA before special items. The decrease in net interest-bearing debt since the beginning of the year was primarily driven by positive net working capital development from inventory reductions and the sale of land and buildings in Poland. Equity The consolidated equity decreased by DKK 28 million compared to 31 December 2023. Equity attributable to H+H International A/S’s share- holders and non-controlling shareholders was DKK 1,566 million and DKK 84 million, respec- tively. Management review for the parent company Result for the year was negative by DKK 267 million compared to DKK 125 million in 2023. The decrease is due to a write-down of investment in subsidiaries after the restructuring of the German business. Events after the balance sheet date No events have occurred after the balance sheet date that would materially impact the assessment of the consolidated financial statements. Follow-up on financial outlook During 2024, H+H adjusted its outlook for organic revenue growth and EBIT margin before special items (bsi) on one occasion for organic growth and twice in total for EBIT bsi. In August, we revised our guidance for organic growth to around 0% from the previous range of -5% to +5%. Additionally, our EBIT bsi was adjusted to DKK 50–100 million from DKK 50–150 million due to low market activity in Germany and the temporary closure of the Borough Green plant in the UK. In November, the EBIT bsi range was narrowed to DKK 50–80 million from DKK 50–100 million. H+H International | Annual Report 2024 | 28In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Q4 2024 results 2024 2023 (DKK million) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Income statement Revenue 649 729 725 644 601 699 731 641 Gross profit bsi 164 174 132 109 94 138 178 154 SG&A 83 82 85 81 82 83 98 83 EBITDA bsi 82 101 41 26 32 53 87 72 EBIT bsi 36 53 (5) (21) (15) 13 38 21 Result after tax for the period 90 19 (29) (130) (109) (29) (101) (7) Balance sheet Invested capital 2,146 2,242 2,330 2,405 2,435 2,405 2,341 2,223 CAPEX 56 24 40 36 67 40 45 45 Net working capital 144 212 287 390 359 437 534 540 Equity 1,650 1,546 1,543 1,560 1,678 1,760 1,787 1,901 Net interest-bearing debt (NIBD) 682 887 993 1,006 887 844 875 804 Cash flow Cash flow from operating activities 19 135 56 (65) (1) 87 (23) (272) Cash flow from investing activities 147 (13) (34) (26) (22) (33) (45) (37) Cash flow from financing activities 43 (32) (30) 122 (70) (19) 52 168 Free cash flow 166 122 22 (91) (23) 54 (68) (309) Financial ratios and others Sales volume (thousand m 3 ) 694 775 779 719 648 740 723 634 Organic growth 6% 2% (3%) (4%) (26%) (24%) (26%) (25%) Gross margin bsi 25% 24% 18% 17% 16% 20% 24% 24% EBITDA margin bsi 13% 14% 6% 4% 5% 8% 12% 11% EBIT margin bsi 6% 7% (1%) (3%) (2%) 2% 5% 3% Note: Q4 2024 results are unaudited Comments relating to the fourth quarter of 2024 Revenue Total revenue increased by 8% to DKK 649 million compared to DKK 601 in 2023. Organic growth was positive 6% driven by higher volumes offset by mix effects. Gross profit before special items (bsi) Gross profit was DKK 164 million, compared to DKK 94 million in 2023, corresponding to gross margins of 25% and 16%, respectively. The increase in gross profit margin was driven by lower energy costs, including the impact of an unfavourable gas contract in 2023. EBIT before special items (bsi) EBIT bsi was DKK 36 million in 2024 compared to negative DKK 15 million in 2023, corre- sponding to EBIT margins of 6% and negative 2%, respectively. Special items Special items income of DKK 129 million for Q4 2024 mainly relates to the gain on sale of land and buildings in Poland partly offset by restructuring costs in Germany of DKK 27 million. For details, see Note 7. Result after tax Result after tax for Q4 2024 was a profit of DKK 90 million, compared to a loss of DKK 109 million in Q4 2023. Cash flow from operating activities Cash flow from operating activities amounted to a cash in-flow of DKK 19 million in Q4 2024 compared to a cash out-flow of DKK 1 million in Q4 2023. Development in operating cash flow is driven by higher earnings for the period. H+H International | Annual Report 2024 | 29In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 1,030 DKKm 871 DKKm 846 DKKm Central Western Europe 37% The United Kingdom 32% Poland 31% Geographical footprint We have a diversified geographical footprint with our activities spread across three core regions, namely Central Western Europe (comprising Germany, the Nordics, the Benelux countries, the Czech Republic and Switzerland), the United Kingdom and Poland. We have a leading position in most of our markets with solid market shares and strong customer relationships. Share of Group revenue in 2024 (DKKm) Aircrete plants 14 Calcium silicate plants 13 H+H International | Annual Report 2024 | 30In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 2020 2021 2022 2023 2024 308,054 319,734 296,280 204,524 164,894 -19 % Central Western Europe Germany is the largest market within H+H’s CWE region, with significant growth potential once regulatory and macroeconomic conditions improve. The organisation has been streamlined to capitalise on this recovery, although the timing remains uncertain. In adjacent markets, including Switzerland, the Nordics and the Benelux, there is more optimism, albeit with moderate growth rates. Market development The German housebuilding industry continued to be impacted by the ongoing economic recession. The number of building permits issued declined by 19% compared to 2023, reflecting difficult market conditions and a general slowdown in construction activity. Looking ahead, 2025 is unlikely to see significant growth in construction activity, as the broader economy is expected to remain flat. Persistent Source: Statistisches Bundesamt inflationary pressures, energy supply challenges, and the absence of effective government support programmes have further weakened the invest- ment climate, making it unlikely that housing targets will be met without substantial policy interventions. In February, the German election took place, and it remains to be seen what meas- ures the new government will introduce before any firm conclusions can be drawn. However, if financing conditions improve and investor confi- dence strengthens, gradual market stabilisation could lay the foundation for a more sustained recovery in the longer term. 2024 results and key developments Revenue in Central Western Europe amounted to DKK 1,030 million compared to DKK 1,256 million in 2023. The decrease amounts to negative organic growth of -18% mainly driven by lower sales volume. Against this backdrop, we focused on optimising the cost structure to drive long-term efficiency. As part of this effort, we launched Project ONE, a strategic initiative aimed at enhancing prof- itability, improving customer experience, and streamlining operations. This project reflects our commitment to bringing CWE’s costs in line with our Poland and UK businesses representing a significant turnaround in this region. Other markets In the Nordics, construction activity declined in 2024 due to high interest rates and market uncer- tainty, but H+H maintained strong partnerships and market presence. Switzerland saw moderate growth as inflation eased and interest rates fell, with a stronger expansion expected in 2025. The Benelux market remained stable in 2024 despite economic uncertainties. H+H maintained its strong position through customer collaboration and efficiency. With improving economic condi- tions expected in 2025, there is optimism for renewed growth in the region. Organic growth -18% H+H market share AAC ~20% H+H market share CSU ~15% Market position #2 Building permits, Germany H+H International | Annual Report 2024 | 31In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 2020 2021 2022 2023 2024 290,661 276,154 341,041 297,985 241,569 20% Poland Source: Statistics Poland Polish building activity experienced a strong recovery, driven by robust underlying demand and further boosted by a government subsidy programme. The market has remained strong after the programme expired. In 2025, expected interest rate cuts from the Polish central bank are anticipated to support continued strong building activity. Market development Polish building activity experienced a strong recovery in 2024, driven by robust underlying demand and further supported by the govern- ment’s 2% loan support programme. The programme had a significant impact on the devel- oper segment, particularly in the first quarter, contributing to a 20% increase in building permits in 2024 compared to 2023. While demand slowed towards the end of the year as the programme was phased out, the underlying fundamentals of the Polish market remained strong. Looking ahead to 2025, government initiatives will remain key drivers of market momentum. Additionally, anticipated interest rate cuts from the central bank are expected to sustain strong building activity in Poland. Beyond government support, the Polish housing market continues to face a structural undersupply of homes, driving long-term demand. Rising wages and improving consumer sentiment could further boost residential construction, while developers are likely to accelerate projects in response to more favourable financing conditions. These factors position Poland as a key growth market in the coming years. 2024 results and key developments Revenue in Poland reached DKK 846 million in 2024, up from DKK 653 million in 2023, reflecting organic growth of 23%. This was driven by strong sales activity, particularly in the first half of the year, supported by the government’s 2% loan support programme. A key development in Q4 2024 was the announce- ment of the sale of the closed Warsaw plant to a Polish residential developer for PLN 110 million, as part of the plant network restructuring programme initiated in 2023. While the Warsaw facility has now closed, H+H Poland remains fully committed to the market. The Warsaw region is now supplied from nearby plants, ensuring efficient distribution, reliable service, and a continued strong presence in this strategically important area. Building permits, Poland Organic growth 23% H+H market share AAC ~20% H+H market share CSU ~25% Market position #2 H+H International | Annual Report 2024 | 32In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Our plant in Zelisławice is the leader not only in terms of safety but also in the efficiency of the production process among our 11 plants in Poland. The site has shown that leadership, engagement and involvement are key attributes in delivering our goal of zero harm Piotr Dauksza Managing Director for H+H Polska Deep dive 10 years without incidents In 2025 our AAC plant in Żelisławice, Poland, achieved the significant milestone of operating 10 years without any lost time incidents (LTIs). This could only be achieved by demonstrating a commitment, passion and energy every day to sustain zero harm. Over the past 10 years the plant and its employees have continuously obtained improvements in their pursuit of safety excellence. The key focus has been on embedding safety into the DNA of the site through a wide variety of initiatives implemented by management. These range from developing core H&S processes, running all day ‘Safety Day’ events, embedding standardised processes and ensuring that all shift supervisors participate in ‘Leading in Safety’ workshops. By being proactive we take the lead in ensuring our workforce is made aware of and understand the hazards and risks in the world of work at Żelisławice. The continuous improvement is demonstrated by the Self-Assessment and Group Maturity Audit process as well as being internally recognised as being ‘Best in Class’ within H&S. The work done in Zelislawice follows our five strategic themes towards zero harm: • Leading in Safety • Behaviour-Based Safety • Engineering Critical Safety Equipment • Embedding Safe Working Instructions • Safety Improvement Plans Picture showing the safety board in Zelislawice reaching 10 years with no accidents. H+H International | Annual Report 2024 | 33In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 2020 2021 2022 2023 2024 104,232 121,993 152,472 189,009 105,449 -1% The United Kingdom Total newbuild registrations Organic growth 11% H+H market share AAC ~45% Market position #1 Source: National House Building Council (NHBC) Political building ambitions are set to drive long-term growth in the UK market, although a ramp-up period is anticipated in 2025. To align supply with demand, H+H reopened the mothballed Pollington plant late in the year, ensuring readiness for future expansion. Market development During the first half of the year, prevailing market conditions, including the Bank of England’s base rate increases, drove mortgage rates higher, reducing demand for new homes and slowing house price growth. However, the second half of the year showed signs of recovery, with quarter-on-quarter growth in new home registrations and mortgages rates, a positive trend influenced by interest rate cuts and improved consumer confidence. Overall, building registrations remained in line with 2023 with some evidence of increased on-site activity and an emerging sense of cautious optimism among housebuilders. The British government must address the struc- tural undersupply of housing while working towards its target of delivering 1.5 million new homes over five years. Expanding the housing stock is essential, and achieving this goal will require a further increase in registrations, supported by lower interest rates and improved market confidence. The funding announced by Chancellor Rachel Reeves in her first Autumn Budget was widely welcomed and is expected to have a positive long-term impact on housing supply. Looking ahead, the combination of gradually improving affordability, sustained government support, and increased developer confidence positions the UK market for moderate but steady growth into 2025. Further rate cuts and policy clarity on long-term housing supply strategies will be critical in sustaining this momentum. 2024 results and key developments Revenue in the UK amounted to DKK 871 million compared to DKK 763 million in 2023. Organic growth for the year was 11%, driven by stable pricing and demand recovery in the latter half of the year. The combination of rising demand, particularly in private housebuilding, and the unexpected produc- tion halt at Borough Green in July 2024 led H+H UK to reopen its mothballed plant in the north during Q4 2024. This strategic move ensures continued supply, supports the growing market, and enhances production capacity. By restarting operations, H+H UK strengthens its ability to meet customer needs while building stock in anticipation of further growth in 2025 and beyond. H+H International | Annual Report 2024 | 34In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Governance 36 Corporate governance 40 Board of Directors 42 Executive Board 43 Shareholder information 45 Risk management H+H International | Annual Report 2024 | 35In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Corporate governance Governance structure - GOV-1 The general meeting is the supreme governing body of H+H Inter- national A/S where shareholders can exercise their rights. At the annual general meeting shareholders consider the annual report, the remuneration report, the election of Board of Director members and the election of auditor, changes to the Articles of Association as well as any other agenda items proposed by the Board of Directors or shareholders. The authority of general meetings and the formalities relating to general meetings are set out in the company’s Articles of Association available on the Group website. Election of a member to the Board of Directors requires simple majority of votes, and decisions to make amendments to the Articles of Association requires at least two-thirds of the votes cast as well as of the share capital represented at the general meeting. H+H International A/S has a two-tier management system consisting of the Board of Directors and the Executive Board. The Board of Directors supervises the work of the Executive Board and is respon- sible for the Group’s strategy and overall organisation, management, and capitalisation. The Executive Board is responsible for the execu- tion of the strategy and the day-to-day management. The organisa- tion and operation of the Board of Directors are set out in the Rules of Procedure for the Board of Directors, and similarly the organisation of the Executive Board and its co-operation with the Board of Direc- tors are set out in Rules of Procedure for the Executive Board. The current Articles of Association state that the Board of Direc- tors must consist of 4-8 members elected at a general meeting. Currently, the Board of Directors consists of 7 members. The term of all board members expires at each annual general meeting, but each member may be re-elected for a new term. It is stipulated in the Arti- cles of Association that a board member may not also be a member of the Executive Board. To support the work of the Board of Directors, the Board of Direc- tors has established three board committees, namely the Audit Committee, the Remuneration Committee, and the Nomination Committee. The board committees are not authorised to make inde- pendent decisions but shall report and provide recommendations to the Board of Directors. The members of each board committee, including the committee chair, are each appointed by the Board of Directors on the basis of their specific competences. Key activities 2024 - Board of Directors - GOV-1 • Review and update of strategy and business plan • Monitoring of the execution of the Group health & safety strategy 'ZERO HARM' • Monitoring of the execution of the new Group operational model HOME, including approval of related CAPEX projects to increase production capacity for the involved plants • Approval of sale of idle assets related to the plant closures executed as part of plant network efficiency actions, including approval of the sale of buildings and land in Warsaw after closure of the Warsaw plant • Monitoring of the execution of Project ONE aimed at integra- tion and harmonisation of the German business and financial processes to release synergies stemming from the acquisitions since 2018 • Monitoring of the execution of measures and related CAPEX imple- mentations in pursuit of the CO 2 targets set under the Zero Carbon strategy • Review of IT and cyber security, including cyber security training and readiness • Unplanned board meetings to monitor the measures taken to resolve a sudden ordered stop to the operation of all autoclaves at the Borough Green plant in the UK • Board evaluation process facilitated by an external expert H+H International | Annual Report 2024 | 36In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Key activities 2024 - Audit Committee - GOV-1 • Oversight of enterprise risk management, including risk categories and revision of the operational hedging policy • Monitoring of group insurance strategy, coverage, and pricing • Monitoring sustainability reporting process, including review of the double materiality assessment and planning of the first full limited assurance of the sustainability statement etc. • Monitoring financial annual and interim reporting process, including treatment and estimates, accounting policies and the integrity of the reporting process, as well as review of the audit strategy Key activities 2024 - Nomination Committee - GOV-1 • Recruitment of new CFO • Arrangement and execution together with the assistance of an external expert of the annual evaluation of the Board and of the Executive Board and their co-operation as well as the Board's collective and the board members' individual competences • Arrangement of recruitment processes for potential new board members to be proposed for election at the next annual general meeting in April 2025 (ongoing into 2025) Key activities 2024 - Remuneration Committee - GOV-1 • Annual review of the Remuneration Policy for the Board of Direc- tors and the Executive Board and presentation to the Board of Attendance rates for board and committee meetings in 2024 Board Member since Meeting Attendance Audit Committee Meeting attendance Nomination Committee Meeting attendance Remuneration Committee Meeting attendance Kent Arentoft 2013 8/9 1/1 1/1 Miguel Kohlmann 2018 8/9 1/1 1/1 Stewart A Baseley 2010 9/9 1/1 Volker Christmann 2017 9/9 4/4 Kajsa von Geijer 2022 6/9 4/4 1/1 Helen MacPhee 2019 8/9 4/4 Jens-Peter Saul 2023 8/9 1/1 1/1 Chair Vice Chair Member * The participation rates for 2024 were below normal for most board members, which is due to there being four unplanned board meetings each held with very short notice over a one week period in July 2024, where many board members were on holiday. Looking at the pre-planned five board meetings, the attendance rates were at 100% for all board members, except for Kajsa von Geijer with an attendance rate at 80% (i.e. absent from one of five board meetings). Directors of proposed changes which were presented at the annual general meeting in April 2024 • Review of the Remuneration Report for 2023 • Review of and proposal for the fees for 2024 to the Board of Direc- tors and presentation to the Board of Directors of the fee proposal which were presented at the annual general meeting in April 2024 • Review of the actual remuneration for 2023 to the Executive Board and proposal for adjustments to the Board of Directors • Review of outcome under the incentive programs vesting in 2024 and proposal to the Board of Directors of KPIs and targets for the short-term and long-term incentive programmes starting in 2024 H+H International | Annual Report 2024 | 37In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Board diversity - GOV-1 The Board seeks to be diverse in the broadest sense relevant, recog- nising the benefits of diversity in terms of cultural background, gender, age etc.. When deciding whether to propose re-election or not of board members as well as when searching for candidates to propose as new board members, the decision is based on filling out relevant competence gaps or strengthening specific competences in the Board. Board diversity by the end of 2024 Nationality & residence * Brazil (1) / Denmark (1) / Germany (3) / Sweden (1) / Switzerland (1) / United Kingdom (3) Board tenure (years) 1-5 (2) / 6-10 (3) / 11-15 (2) Board independence rate 86% (2023: 86%) Age distribution (years) 55-59 (2) / 60-64 (3) / 65-69 (2) Gender Female (2) / Male (5) - average ratio of 29% Educational backgrounds Business Administration, Controlling and Auditing / Mechanical Engineering / Economics / Strategy and Management / Financial and Management Accounting / Human Resource Management Current Board competence profile - GOV-1 Individual competences: • International and business-minded • Analytical and strategic • High integrity and accountability • Team-oriented Collective board competences: • International top management • Production & sales in building industry • Supply chain management • Health & safety • Sustainability / ESG • HR and compliance • Finance and accounting • Enterprise risk management • IT, AI and cyber security management • Strategy development • Change management • M&A, divestments etc. • Investor relations and capital markets • Corporate governance H+H has since the annual general meeting on 31 March 2022 had equal gender distribution in our Board of Directors, as defined by the Danish Business Authority. For this reason, no formal gender target under the law is set. However, when the Board as part of its annual board evaluation decides to want to change its composition, the possibility to improve especially the Board’s gender diversity and age profile will naturally be pursued. Hence, If two candidates for a board position are equally competent, the person improving the gender and/or age diversity will be preferred. Board evaluation - GOV-1 The Board of Directors’ annual evaluation procedure for 2024 was conducted by an external expert who had one-on-one meetings with each member of the Board of Directors as well as with each member of the Executive Board. The Board then held a board meeting without the presence of the Executive Board where the external expert presented input and findings followed by private discussions in the Board of Directors to discuss the findings and agree on conclusions and action points. The issues evaluated included discussions and decisions regarding e.g.: • the board composition (diversity gaps in regard to competences, gender, age, board continuity etc. and the size of the Board) • the board structure (review of the chairship and the board committee structure) • the board performance (collective and individual performance) • co-operation between the Board and the Executive Board (collec- tive and individual performance, co-operation inside and outside of board and board committee meetings) and • potential changes to the size of the Board, the individual board members, inclusion of new board members and related candidate profiles and use of headhunters etc. The expert summarised the work of the Board as being based on a high level of trust and collaboration. Board members were all well prepared and had a high participation rate for all planned meetings, indicating that no board members were overboarded. The Board found having a Chairship to be an effective way to manage the Board. The Board also found there to be good and relevant diversity in respect of competences and the spread in board tenure, ensuring both continuity and renewal. The co-operation between the Board and the Executive Board functioned well and the Executive Board said it benefitted from having board members that collectively repre- * Two board members have dual citizenship H+H International | Annual Report 2024 | 38In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements sented very diverse and relevant competences with regard to special subject matters, industries, country market experience, and cultural insights. Remuneration Remuneration of the Board of Directors and the Executive Board is paid in line with the H+H Remuneration Policy for the Board of Directors and Executive Board adopted by the general meeting. The Remuneration Policy will be reviewed and presented for approval at the annual general meeting for 2025. H+H reports on remuneration in an annual Remuneration Report presented to the shareholders at the annual general meeting for an advisory vote. The Remuneration Report for 2024 and the present Remuneration Policy are available on the Group website. Annual corporate governance statement As a listed company on NASDAQ Copenhagen, H+H International A/S reports annually on the recommendations on corporate govern- ance. These are issued by the Committee on Corporate Governance together with a description of the internal control and risk manage- ment system relating to the financial reporting as required under Section 107(b) of the Danish Financial Statements Act. The reporting is done in an annual Corporate Governance Statement available on our Group website. We comply with all recommendations. Report on data ethics The following makes up the data ethics report required under Section 99(d) of the Danish Financial Statements Act. H+H’s Data Ethics Policy has as its overall objective to encourage and motivate all our employees to handle data with the utmost care and respect and to follow our guiding principles on data use and ethics. We are committed to complying with all applicable personal data protection laws. We run internal audit controls to secure compliance with both information security and data protection requirements, and all employees developing, purchasing or otherwise working with technology and data science-based uses of data must be informed about the data ethics principles. We do not purchase, sell or broker data or otherwise profit from separate data transfers from or to third parties. We do not currently carry out data processing using artifi- cial intelligence, such as machine learning, as a natural part of our business. Our Data Ethics Policy can be found on the Group website, H+H International | Annual Report 2024 | 39In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Board of Directors Kent Arentoft, Chair Miguel Kohlmann, Vice Chair Stewart Antony Baseley Male. Born 1962. Danish. Male. Born 1962. German/Brazilian. Male. Born 1958. British. Chairman of DSVM Invest A/S and subsidiaries. Professional board member and advisor. Chairman of Highlander Partners (CEE) and board member of five subsidiaries (Romania) and two subsidiaries (UK) Independent Member and Chair since 2013 Chair of the Nomination Committee Independent Member since 2018 and Vice Chair since 2024 Chair of the Remuneration Committee Member of the Nomination Committee Not independent (more than 12 years board tenure) Member since 2010 Member of the Nomination Committee H+H shareholding Holds 60,000 H+H shares via a company he controls No changes made in 2024 H+H shareholding Does not hold any H+H shares No changes made in 2024 H+H shareholding Holds 22,500 H+H shares No changes made in 2024 Areas of expertise Broad organisation and management experience in international companies in the building materials and contracting sector, particularly within strategy development and M&A transac- tions. Areas of expertise Extensive management experience in global building materials production and other global industries. Worked in controlling, sales, production, and general management. Areas of expertise Experience in the international housebuilding industry and the developer industry, particularly in the UK, as well as international management experience. Other management positions and directorships Chairman of MAAG Gear AG Chairman of Geveko Group AB Board member of Igne Group Limited. Other management positions and directorships Chairman of the Board of Directors of Archroma Holdings SARL (Luxembourg) and NMC International S.A. (Luxembourg). Member of the Advisory Board of Pfleiderer GmbH (Germany) and Paul Bauder GmBH (Germany). Other management positions and directorships Chairman of Home Builders Federation and board member of four subsidiaries (UK) Chairman of Troy Homes Limited (UK) Patron of Children with Special Needs Foundation (UK) GOV-1 – The role of the administrative, management and supervisory bodies H+H International | Annual Report 2024 | 40In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Volker Christmann Kajsa von Geijer Helen MacPhee Male. Born 1957. German. Female. Born 1964. Swedish. Female. Born 1962. British. Managing Director, Senior Vice President Insulation Central Europe, Member of Group Management of ROCKWOOL A/S. Chairman of the Board of Directors of two companies in the ROCKWOOL Group, Managing Director of five companies in the ROCKWOOL Group and member of the Board of Directors of ROCKWOOL Foundation. Professional board member and advisor. Senior Vice President of Finance, AstraZeneca plc (UK). Independent Member since 2017 Member of the Audit Committee Independent Member since 2022 Member of the Audit Committee Member of the Remuneration Committee Independent Member since 2019 Chair of the Audit Committee H+H shareholding Does not hold any H+H shares No changes made in 2024 H+H shareholding Does not hold any H+H shares No changes made in 2024 H+H shareholding Does not hold any H+H shares No changes made in 2024 Areas of expertise Extensive experience within the building materials production sector of Central Europe, particularly in Germany, as well as within financial auditing and controlling. Areas of expertise International experience within strategic and operational HR, sustainability, ESG and general compliance. Areas of expertise Extensive experience within strategic and operational finance. International experience in change management, financial oversight and control, management of large-scale ERP imple- mentation projects, governance, and risk frameworks. Other management positions and directorships Chairman of the Board of Directors of BuVEG (Bundesverband energieeffiziente Gebäudehülle) (Germany). Member of the Board of Directors of FIW (Forschungsinstitut für Wärmtechnik) (Germany). Other management positions and directorships Member of the Advisory Committee of Solix Group AB (Sweden) and of one its subsidiaries. Other management positions and directorships N/A Board of Directors – continued GOV-1 – The role of the administrative, management and supervisory bodies H+H International | Annual Report 2024 | 41In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements GOV-1 – The role of the administrative, management and supervisory bodies Jens-Peter Saul Male. Born 1966. German/British. CEO of Ramboll Group A/S, Denmark Independent Member since 2023 Member of the Nomination Committee Member of the Remuneration Committee H+H shareholding Holds 6,259 H+H shares No changes made in 2024 Areas of expertise Extensive international experience in particular within strategy development and ex- ecution to accelerate organic and acquisitional growth and to maximise investments, as well as broad insights into sustainability and the green energy transition. Experi- ence from diverse industries such as infrastructure, energy, construction, investment, manufacturing and trading. Other management positions and directorships Member of the Board of Directors of Cubico Sustainable Investments Limited (UK). Board of Directors – continued Executive Board Jörg Brinkmann Bjarne Pedersen Male. Born 1979. German. Male. Born 1977. Danish. CEO since 2022 CFO since 2024 H+H shareholding Holds 21,300 shares 7,300 were purchased in 2024 H+H shareholding Holds 10,141 shares No changes made in 2024 Background 2018-2022: Managing Director, Europe of James Hardie Europe, GmbH (Germany) 2014-2018: CEO of Fermacell, GmbH (Germany) 2011-2014: Sales Director of Fermacell, GmbH (Germany) 2005-2011: Head of Marketing at Xella Group, GmbH (Germany) Background 2019-2024: Chief Strategy Officer in H+H (Denmark) 2014-2019: Investor Relations and Business Development, H+H International A/S (Denmark) 2008-2014: Various IT and Finance postions in H+H International A/S (Denmark) 2006-2008: Global Cash management in Danske Bank (Denmark) 2005-2006: IT Consulting Project Manager at e-conomic A/S (Denmark) 1998-2005: Auditor at Pwc (Denmark) Education MSc (Business Administration) PhD Economics Education MSc (Business Economics and Auditing) Other management positions and directorships N/A Other management positions and directorships N/A H+H International | Annual Report 2024 | 42In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Shareholder information H+H International A/S is listed on the Nasdaq Copenhagen stock exchange and is trading under the ticker symbol HH. Share-price development The H+H International A/S shares started the year at a price of DKK 88.80 and closed the year at a price of DKK 78.70, representing a decrease of 11%. At the end of the year, the total market value of H+H amounted to DKK 1,298 million. The highest traded price during 2024 was DKK 109.4 on 7 June and the lowest traded price was DKK 65.6 on 15 March. Share capital and treasury shares H+H's shares are listed on the Nasdaq Copen- hagen stock exchange and consists of 16,500,000 shares each valued at DKK 10, with uniform voting and dividend rights. By the fiscal year's end, H+H held 162,049 treasury shares, representing 1% of its share capital. Composition of shareholders On 31 December 2024, H+H had more than 5,500 registered shareholders. Major shareholders owning more than 20% of the total share capital and votes were Solbet Sp. z o.o., Poland. Major shareholders owning more than 5% but less than 10% of the total share capital and votes were Nordea Funds Ltd., Finland, ATP Arbejds- markedets Tillægspension, Denmark, and BI Asset Management Fondsmæglerselskab A/S, Denmark. The majority of the share capital is held by Danish investors. Other key markets are Poland, the United Kingdom, and the United States. Capital allocation Our free cash flow allocation priorities are unchanged from previous years: 1. Repay of net interest-bearing debt in periods when the financial gearing ratio is above the long-term target range; 2. Pursuit of value-adding investments in the form of acquisitions or development of the existing business; and 3. Distribution of capital to the shareholders by means of share buy-backs and/or dividends. For the time being, we expect to use the free cash flow to repay debt to lower the gearing to within the long-term target ratio of 1-2x net inter- est-bearing debt to EBITDA before special items. Major shareholders per 31 December 2024 Solbet Sp. z o.o., Poland > 20% Arbejdsmarkets Tillægspension, Denmark >5% Nordea Funds Ltd., Finland >5% BI Asset Management Fondsmæglerselskab A/S, Denmark >5% Denmark - 57% Poland - 23% United Kingdom - 7% United States - 3% Others - 10% Geographical distribution of shareholders Share information Exchange Nasdaq Copenhagen ISIN code DK0015202451 Ticker symbol HH No. of shares 16,500,000 Denomination DKK 10 per share Share capital DKK 165,000,000 Voting rights One vote per share H+H International | Annual Report 2024 | 43In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International A/S OMX Copenhagen Mid-Cap PI (re-based) January February March April May June July August September October November December 40 60 80 100 120 Annual general meeting The next annual general meeting (AGM) is sched- uled for 8 April 2025 at 11.00 a.m. at Copenhagen Marriott Hotel, Copenhagen. Further details are published through a company announcement and on our group website no earlier than five to three weeks before the AGM. AGM documents will be accessible on our group website once the notice is published. Amendments to the Articles of Asso- ciation require the resolution is passed by at least two-thirds of the votes cast as well as of the share capital represented at the AGM. Investor Relations - SBM-2 The purpose of our financial communications and other investor relations activities is to ensure that relevant, accurate and timely information is made available to the stock market to serve as a basis for regular trading and a fair pricing of H+H shares. To ensure that capital market participants, including current and prospective investors, are able to make well-informed investment deci- sions, we seek a transparent and active dialogue with all financial market participants, including investors, sell-side analysts, journalists and the 2024 relative share-price performance Financial calendar 2025 4 March 2024 Annual Report 8 April Annual General Meeting 20 May Q1 Interim Report 12 August H1 Interim Report 11 November Q3 Interim Report general public via conference calls, participation in investor meetings and equity conferences and social media. H+H is not normally available for dialogue about financial matters in the three-week period leading up to the publication of an interim financial report or the annual report. Inquiries concerning investor relations issues should be addressed to the Head of Investor Relations and Treasury via email to [email protected]. More relevant investor information is available on our group website. H+H International | Annual Report 2024 | 44In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Net impact after mitigations Probability 1 4 6 5 3 2 Risk management The ERM processes at H+H ensure a dynamic approach, which involves identifying risks, assessing their probability, and evalu- ating the potential impact on business performance, governance, image and people. The aim is to mitigate identified key risks to an acceptable level through appropriate ERM processes. Each region within the group conducted individual workshops to identify poten- tial risks. The results and evaluations from these workshops were integrated into the overall group enterprise risk evaluation. Key elements of these risks and the corresponding mitigation strate- gies are detailed in the following sections. Detailed information on the risk management structure is available in the Corporate Governance statement for 2024. The Board of Directors of H+H International A/S oversees the risk management processes to ensure that the risk profile, risk process, and risk awareness are appropriate. Responsibility for Enterprise Risk Management (ERM) effectiveness has been delegated to the Chief Financial Officer. Market Production Financial Cyber Health & Safety Climate 1 2 3 4 5 6 H+H International | Annual Report 2024 | 45In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Risk position The risk categories outlined below are recurring risks from previous years, though the balance, severity and in some cases the nature have changed. Hence, the efforts to mitigate these risks have been adjusted to the current risk picture. 1 Market 2 Production Risk description The industry is influenced by a range of factors, including interest rates, which affect borrowing costs for developers and buyers, and general economic growth, which impacts demand for housing. Population growth, urbanisation, and shifts in household formation also play a role in driving the need for new homes. Additionally, government policies, incentives and regulatory frame- works, such as sustainability requirements, influence the pace and focus of construction activity across regions. In recent years, rising inflation and higher interest rates have lowered building activity, despite strong housing need. Pricing continues to be a key parameter. In regions with a declining market, there is a risk that competitors will adopt a volume strategy to avoid excess production capacity, leading to increased price pressure. H+H relies on a stable production, therefore unforeseen stoppages, unplanned maintenance, or damage to machinery or other events vital to production which can make plants or machinery unavailable for production for an extended period, is a risk. Other key elements of the production risk include inflationary pressures and scarcity of raw materials. Mitigating actions H+H closely monitors the market development for residential new-build and frequently assesses current and expected market in- dicators, such as building permits and interest rates. Additionally, by focusing on production efficiency we will improve the possi- bility to respond to changes in market demands and adjust production capacity accordingly. We maintain a firm pricing discipline and invest in relationships with key customers, to ensure that pricing strategies are both competitive and sustainable. H+H remains committed to investing in our plants to ensure limited disruption, through monitoring and investigation of critical production equipment, preventive maintenance and regional developed emergen- cy plans. In addition, we have implemented a hedging policy to manage the risks associated with energy price volatility. Net risk assessment As seen in recent years, the building industry is highly exposed to economic fluctuation. However, risks are mitigated by a firm pricing discipline, continued investment in efficient and agile production facilities, which also allows for timely responses to changes in the market dynamics. The risk is assessed to be medium to high. Considering the mitigation actions, the risk is assessed to be medium. It remains a key focus to ensure a stable and efficient production and to regularly oversee and assess any potential production and supply risks as part of daily operations. H+H International | Annual Report 2024 | 46In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 3 Financial 4 Cyber 5 Health & Safety - ESRS 2 GOV-5 6 Climate - ESRS 2 GOV-5 Risk description A potential lack of funding or a breach of covenants could lead to the cancellation of the current facility, necessitating the estab- lishment of a new, potentially more expensive financing source. Additionally, a low cash generation could impact bank KPIs, resulting in higher interest rates. Cybercrime is growing and there is a rise in cyberattacks which are becoming more sophis- ticated and frequent. Cyberattack/ransomware situations blocking access to networks or critical systems, can impact essential processes in several business areas. Critical accidents resulting in fatalities or serious harm to employees or external parties can be caused by several factors. These include inade- quate behavior within the business, insufficient training and learning in health and safety. Failure to meet our science-based targets, including not adhering to the sustainability strategy by reducing coal usage, closing or improving inefficient plants, and sourcing more carbon-friendly raw materials, is a risk for H+H. Mitigating actions A long-term credit facility is established to support the strategy and future investments. Additionally, in-depth cash monitoring and forecasting are conducted, including scenar- io-based assessments. Dedicated resources within Group IT focused on cybersecurity are monitoring developments in this area. Choice of IT suppliers and the adequacy of defense measures are carefully considered. Additionally, continuous training in cybersecurity is provided for all employees and results of the training is presented to manage- ment on a recurring basis. The importance of safety is embedded through the Group Health and Safety Policy, which pro- vides guidance on applying our safety manage- ment system across all operations. We conduct near-miss reporting and root cause analysis to reduce risk and strive to enhance performance through both external and internal reviews, fol- lowed by subsequent follow-ups. Operational management is responsible for ex- ecuting plans that support our science-based targets, and management is committed to making adequate funding for the projects nec- essary. Additionally, planning by the procure- ment team in sourcing materials is essential. Mitigating actions are further described in the Sustainability Statement under the Environ- mental Information section. Net risk assessment The current liquidity position and expected cash projections indicate sufficient headroom for the company’s bank covenants. Conse- quently, the risk is assessed as low. H+H is seeing an increasing number of attempts and numbers of methods being used in these attempts. Our mitigating actions are consist- ently updated and implemented, reducing the likelihood of occurrence. Therefore, the risk is considered to be medium. There is a relatively small number of employees in a plant, where the heavy machinery is, and it is rare that accidents affect more than one employ- ee at the time. The risk is considered low. Our science-based targets are ambitious but realistic with the effort and mitigation in place, hence the probability of the risk is considered low. The challenges are more industry specific than company specific. H+H International | Annual Report 2024 | 47In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Sustainability statement 49 General information 63 Environmental information 76 Social information 85 Governance information H+H International | Annual Report 2024 | 48In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements ESRS 2 General disclosures BP-1 General basis for preparation Our sustainability statement is prepared on a consolidated basis with our 2024 financial statements and with reference to the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and in compliance with sections 99a and 107d of the Danish Financial Statements Act. It covers our own operations and upstream and downstream value chains. The statement is structured into four sections - ‘General’, ‘Envi- ronmental’, ‘Social’ and ‘Governance’ – with each section disclosing relevant information related to impacts, risks, opportunities, targets, metrics, policies and actions. We have not used the option to omit specific information corresponding to intellectual property, know-how or the results of innovation. GOV-1, GOV-2 Sustainability governance H+H’s ESG activities are anchored at the Board of Directors who has oversight of our strategy, targets, impacts, risks and opportunities and Group policies together with Group Management. This includes regular risk assessments, establish- ment of internal controls and documentation of data, which are overseen by the Audit Committee. Due diligence is managed mainly through policies and their related processes. The Board of Direc- tors and the relevant underlying board commit- tees are updated on these as part of their annual wheel. The long-term strategy for H+H is discussed at the annual strategy seminar, including how to address and manage the material impacts, risks and opportunities identified in the Double Mate- riality Assessment (‘DMA’). During the first half of 2024, a review of the DMA was completed by Group Management and the regional Managing Directors, including engagement with various internal and external stakeholders. The result of this was first presented to the Audit Committee before being presented and approved by the Board of Directors. You can read more about our board composition, governance structure and activities in the Corpo- rate Governance section. Here you can also find information on the experience and background of the members of the Board of Directors and the Executive Board. As a further testament to our commitment, H+H also has a sustainability-linked financing agree- ment, which incentivises the achievement of specific ESG KPIs. General information List of disclosure requirements Page reference ESRS 2 General Disclosures BP-1 General basis for preparation of the sustainability statement Page 49 GOV-1 The role of the administrative, management and supervisory bodies Pages 36-42, 49 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies Pages 49-50 GOV-3 Integration of sustainability-related performance in incentive schemes Page 50 GOV-4 Statement on due diligence Page 51 GOV-5 Risk management and internal controls over sustainability reporting Pages 56-57 SBM-1 Strategy, business model and value chain Pages 19, 23-24 SBM-2 Interests and views of stakeholders Page 52 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Pages 53-54 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities Pages 55 IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement Pages 54, 59-62 Sustainability is a strategic focus area for H+H and it is embedded in our business model. In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2024 | 49Financial statements Board of Directors Oversees compliance of the ESG Policy and is updated monthly on key ESG metrics by Group management as well as at board and board committee meetings. This includes updates on various ESG-related projects around the group and the effec- tiveness of our actions in relation to our targets. Audit Committee Is responsible, amongst other things, for overseeing financial and non-financial reporting as well as external assurance, internal controls and risk management relating to ESG. It also receives notice of results of whistleblower investigations. Committee meetings are held each quarter in connection with release of financial reports. Meetings are also held at the request of other board members or the financial or sustainability auditors, as well as when the Chair of the Audit Committee finds it necessary. The Operations organisation is overall responsible for execu- tion of matters related to the environment, including energy consumption, emissions, as well as H&S and work incidents. The HR organisation is overall responsible for execution of social matters, exept for safety, and for the framework for implementation and training of compliance matters. The Finance organisation is overall responsible for matters related to execution of governance, including reporting, ESRS and taxonomy. H+H Group Management Defines and executes initiatives to achieve the ESG strategy and oversees progress, including long-term projection of CO 2 emissions and health & safety. Driven in close liaison with regional management, work and reporting is supported by various Group and regional functions. This is done at least monthly as part of general business review meetings or as part of weekly meetings with the regional Managing Directors. Corporate Controlling Monitors new legal requirements and trends around the ESG landscape, makes recommendations on key ESG initiatives to ensure compliance with stakeholder expectations, and executes on strategic targets in cooperation with key regional stakeholders. Sustainability is anchored across our corporate governance structures GOV-3 Integration of sustainability-related performance in incentive schemes H+H’s Remuneration Policy for the Board of Directors and Executive Board seeks to create a remuneration framework that supports achievement of our strategy, with a focus on ensuring continuous long-term sustainable development of our business, while creating long-term value for shareholders. The policy, including all subse- quent changes, is approved by the General Meeting of shareholders. The policy describes target setting for both the long- and short- term incentive programme. For 2024, the short-term incentive programme included two KPIs related to ESG, with one KPI target relating to lost-time incidents (H&S) and one KPI target relating to the reduction of our scope 1 and 2 CO 2 emissions. Each KPI has a 15% weighing. In 2023, we introduced an ESG-related KPI in our long-term incentive share programme, related to our scope 1 and 2 emissions. This was continued in 2024 and like last year, the target is weighted 15%. The measurement period of the programme runs three financial years at the time. Both long- and short-term targets relating to emissions are assessed and determined in relation to the GHG emission reduction targets described in the Environmental section. SBM-1 Strategy, business model and value chain A description of our strategy, business model and value chain is provided in the Business and Strategy section. Please refer to the full content of page 19 and 23-24. H+H International | Annual Report 2024 | 50In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? a) Embedding due diligence in governance, strategy and business model ESRS 2 GOV-2, pages 49-50 People and environment ESRS 2 GOV-3, page 50 People and environment ESRS 2 SBM-3: pages 64-65 (E1) Environment pages 76-77 (Health & Safety, S1) People page 78 (Equal treatment & opportunities for all, S1) People page 82 (Training & skills development and working conditions, S1) People b) Engaging with affected stakeholders in all key steps of the due diligence ESRS 2 GOV-2, pages 49-50 People and environment ESRS 2 SBM-2, page 52 People and environment ESRS 2 IRO-1, page 55 People and environment ESRS 2 MDR-P: page 65 (E1-2) Environment pages 77-79, 82 (S1-1) People Social: page 82 (S1-2) People ESRS 2 IRO-1, page 55 People and environment c) Identifying and assessing adverse impacts ESRS 2 SBM-3: pages 64-65 (E1) Environment page 76-77 (Health & Safety, S1) People page 78 (Equal treatment & opportunities for all, S1) People page 82 (Training & skills development and working conditions, S1) People Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? d) Taking actions to address those adverse impacts ESRS 2 MDR-A: page 63 (E1-1) Environment pages 65-66 (E1-3) Environment pages 77, 79, 82 (S1-4) People e) Tracking effectiveness of these efforts and communicating ESRS 2 MDR-M: page 66 (E1-4) Environment pages 77-78 (S1-14) People page 81 (S1-9) People page 81 (S1-16) People page 83 (S1-13) People ESRS 2 MDR-T: page 66 (E1-4) Environment pages 77, 79, 83 (S1-5) People GOV-4 Statement on due diligence Environment People H+H International | Annual Report 2024 | 51In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements As Partners in wall building, we are in the business of people, seeking to engage with both our internal and external stakeholders. The Board of Directors and Group management are regularly informed of the views of our stakeholders to better assess how to incorporate their interests in our strategy. A key interest area from both our internal and external stakeholders is the need to drive down emissions, while the main priority for our internal stakeholders is safety. This is reflected in our strategy and ways of working. Employees We are committed to providing a safe, engaging and meaningful workplace for our employees, where collaboration can thrive. We engage with our employees in a number of different ways, including intranet updates, workers’ councils, engagement surveys in selected areas, manager check-ins and global town halls. Employees also have the opportunity to raise concerns through our online whistle- blower system, described in the Governance section. Through this we want employees to feel they have influence over their workplace and that concerns are met, e.g. in the form of improve- ments and action plans. Customers We are a customer centric organisation under- pinned by our promise to be Partners in wall building. Engaging with our customers to consist- ently understand their perspectives and needs is an embedded part of our business model with the aim of building trust, providing sustainable solutions as well as enabling them to reach their targets. Engagement is done through our customer support, customer surveys and training as well as part of business partner due diligence. Our stakeholders SBM-2 Interests and views of stakeholders Examples of outcome is the creation of product- specific environmental product declarations (EPDs) in most of our markets. Suppliers H+H relies on suppliers to meet our emissions reduction targets. This informs the purpose of our engagement, focusing on development of low-carbon cement and lime and finding more efficient production methods. Engagement is organised as part of supplier due diligence and via industry collaborations. The progress of these, influences our strategy for lowering scope 3 emis- sions in the short and long-term. Society and local communities Compliance with existing regulations on respon- sible business practices is a fundamental and basic requirement in H+H’s Code of Conduct. Through our memberships in various trade organ- isations, we engage in dialogue with different regulators and interest groups with the purpose of addressing potential risks and opportunities as well as ensuring regulatory compliance. We engage with our local communities to ensure that we are good neighbours to our surroundings and we participate in local trade fairs and events to promote our business and further relationships. Shareholders H+H is listed on the Danish Stock exchange. We therefore naturally engage with our shareholders on a regular basis to ensure efficient financial allocation and to understand shareholders’ interests. This is done via a dedicated Investor Relations department, management participa- tion in investor roadshows and conference calls, briefings with analysts and the Annual General Meeting. The purpose of this is to improve dialogue and relationships with stakeholders. Dialogue with shareholders is described in more detail in the Shareholder Information section (Investor Relations) on page 44. H+H International | Annual Report 2024 | 52In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model As part of our process, we have considered current and anticipated effects of impacts, risks and opportunities on our business model, value chain and decisionmaking. The material impacts, risks and opportunities identified during the materiality assessment are presented in more depth alongside the topical standards ESRS E1 Climate change, S1 Own workforce and G1 Busi- ness conduct in the Environmental, Social and Governance information sections in this sustaina- bility statement. For climate-related topics we have identified material financial risks and opportunities, as shown in our DMA matrix and elaborated on in ESRS 2 SBM-3 in the Environmental section. For other material topics, we have exercised the phase-in option and not quantified the financial effect. E1 climate change Chapter Type Sub-section Value chain Time horizon Emissions from own operations Climate change Actual negative Own operations All Value chain emissions from raw materials production Climate change Actual negative Upstream All Use of energy in own production Climate change Risk Own operations All Recarbonisation of our products during its life-time Climate change Opportunity Entire value chain All S1 Own workforce System to record and assess workplace injuries and illnesses in order to prevent them going forward Health & safety Potential negative Industrial accidents Own operations Short Ill health due to exposure to hazardous materials Health & safety Potential negative Production materials Own operations Short & Medium Recording of how many days are lost due to work incidents, ill health and fatalities Health & safety Potential negative Industrial accidents Own operations Short & Medium Incidents which have resulted in an injury, ill health or fatality Health & safety Potential negative Industrial accidents Own operations Short & Medium Incidents which result or could potentially result in an injury Health & safety Potential negative Industrial accidents Own operations Short Gender equality impact Equal treatment & opportunities for all Actual negative Gender equality & equal pay Own operations Short Diversity in H+H Equal treatment & opportunities for all Potential negative Gender diversity Own operations Short & Medium Risk of harrasment in workplace Equal treatment & opportunities for all Potential negative Anti-harassment Own operations Short & Medium Workers impact on working time Training & skills development and working conditions Potential negative Work-life balance, working conditions and social dialogue Own operations Short H+H's impact on work-life balance Training & skills development and working conditions Potential negative Work-life balance, working conditions and social dialogue Own operations Short & Medium Individual career development of H+H employees Training & skills development and working conditions Potential negative Training and skills development Own operations Short & Medium H+H's impact on social dialogue in the workspace Training & skills development and working conditions Potential negative Work-life balance, working conditions and social dialogue Own operations Short Training of employees Training & skills development and working conditions Potential negative Training and skills development Own operations Short & Medium G1 Business Conduct Impact on own workforce from corporate culture Business Conduct Potential negative Corporate culture Own operations All Lack of protection of whistleblowers Business Conduct Potential negative Whistleblower protection Own operations All Risk of corrupt business practices being conducted in H+H Business Conduct Potential negative Unethical business practices Own operations All H+H International | Annual Report 2024 | 53In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Impact material Non-material Double material Financial material Financial impact on H+H H+H impact on people and environment 1 2 314 20 15 21 16 17 24 4 9 18 5 10 19 6 11 23 7 12 8 13 022 Double Materiality Assessment IRO-2 Disclosure Requirements in ESRS We have aligned the IROs with the relevant ESRS data points and conducted a thorough materiality assessment. This evaluation helped us ascertain their relevance to our business model and the decision-making requirements of the Sustain- ability statement's users. For all topics we have assessed the scale, scope and irremediability and applied relevant thresholds. E1 Climate change 1 Climate change adaptation (CCA) 2 Climate change mitigation (CCM) 3 Energy E2 Pollution 4 Air 5 Water 6 Soil 0 Living organisms 0 Substance of (high) concern E3 Water & marine resources 7 Water withdrawals 0 Marine resources 0 Water habitat degradation E4 Biodiversity & ecosystems 8 Direct impact drivers on biodiversity loss 0 Impact on the state of species 9 Impacts on the extent and condition of ecosystems 10 Impacts and dependencies on ecosystem services E5 Resource use and circular economy 11 Resource inflows and usage 12 Resource outflows related to products and services 13 Waste S1 Own workforce 14 Working conditions 15 H&S 16 Equal treatment and opportunities 17 Talent development 0 Other work related rights S2 Workers in the value chain 18 Working conditions 19 Equal treatment and opportunities 0 Other work related rights S3 Affected communities 0 Economic, social and cultural rights 0 Civil and political rights 0 Particular rights of indigenous rights S4 Consumer & end-user 0 Information related impacts 0 Personal safety of consumers 0 Social inclusion of consumers G1 Business conduct 20 Corporate culture 21 Whistleblower protection 0 Animal welfare 22 Political & lobbying activities 23 Payment practices with suppliers (late payment) 24 Corruption and bribery Consequently, this analysis identified the key sustainability information presented in this statement. Description of material and non-ma- terial topics are elaborated under SBM-3 and the process of determination is described under IRO-1. The list of relevant datapoints related to other legislation is shown on pages 61-64. Reporting topics in scope Topics marked '0' in the list to the right were deemed immaterial from the start and thereby not included in the engagement process. Environmental Social Governance H+H International | Annual Report 2024 | 54In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities Identification of topics All entities and business segments have been in scope in our assessment and our IRO. Identi- fication of topics and subsequent assessment and scoring of topics have been done throughout our value chain. We have engaged with various internal and external stakeholders, including employees, suppliers, customers, society, investors, analysts and banks to identify H+H’s material sustainability matters. This engage- ment happened through interviews and desktop research. Parallel to this, we have also assessed the financial risks and opportunities for sustaina- bility-related matters as part of our ERM process. Our DMA is reassessed annually or if we identify significant changes. General assumptions We have applied the following assumptions to our process for identifying impacts, risks and oppor- tunities: • Majority (95+%) of our supply is virgin mate- rial, which is excavated and supplied directly from tier 1 suppliers and not processed from tier 2 suppliers. Hence we have decided to only include tier 1 suppliers, as others are of imma- terial size. • We assume, the primary actual and potential impact lies within our upstream activities and production. Therefore, our analysis for down- stream activities is primarily based on inter- views with internal stakeholders and desktop research. • Transport is included in Climate as part of scope 3 emissions. Besides Climate we have assumed that transport is not significant in relation to impacts and have therefore not performed further analysis. • Assumptions which have been used under various topics are described below the relevant topics. Materiality scoring approach The materiality assessment's scoring method and criteria were established following ESRS 1 require- ments, focusing on: • Impact materiality: Considering the scale, scope, irremediability, and likelihood of impacts being positive/negative and actual/potential. Severity takes precedence over likelihood for human rights related impacts as per ESRS 1 (45). • Financial materiality: Assessing the financial significance of risks/opportunities, their likeli- hood, and the nature of financial impacts. Outcome The materiality assessment determined that “Climate”, “Own workforce” and “Business Conduct” are material topics for H+H, and the 2024 evaluation confirmed the topics and subtopics in scope. In line with the materiality assessment our sustainability strategy focuses on CO 2 and safety. This outcome is consistent with our previous sustainability strategy with no additional focus areas being added. Rationale for selected scoped-out matters In this section we want to provide more clarity for the out-scoping of four selected topics. While below topics fall under our threshold for materi- ality following our assessment, we still recognise that we have a footprint and therefore want to provide transparency on our reasoning for not having them in scope. The section is not exhaus- tive. Pollution In our assessment of our impact on the pollution of air, water and soil, we have analysed the impact of our own production in the value chain. As we believe the pollution of our upstream and down- stream value chain activities are compliant with European and local regulations, and do not pose any material impact on the environment, we have not done any further analysis.Additionally, in our research we have not encountered any material cases or controversies in the building supply industry on pollution. In production of AAC, almost 100% of the water is either used in the product or recycled into production afterwards, hence no risk of water or soil pollution. For CSU, we use almost no water as the production process only involves the pressing of dry lime and sand. The only water used is for the generation of steam. Any excess water is sent to municipal water treatment stations, which we pay for. In conclusion, we do not see any material negative impact in the pollution of water and soil. In terms of air pollution, we have assesed our use of natural gas and coal. From a pollution perspec- tive natural gas is generally a “clean” source to burn and is not considered to have a material negative impact. Coal as an energy source is materially polluting the air in its natural form and it is therefore heavily regulated through local legislation to prevent it from polluting the air and impacting the local community. In our coal-fired plants, we use air- and dust filters to capture the pollution, and we regularly test the emissions to ensure alignment with local legislative requirements. Based on this, we decided not to conduct consultations with local affected communities. Water withdrawals Using water is a key process in our manufacturing process. However, our plants are generally not located in areas of high water stress, so the risk of water scarcity is low. Generally there is also a H+H International | Annual Report 2024 | 55In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements consumption cap on our water permits ensuring that we do not have any material impact on the water in the local community. In addition, many of our plants are designed to recycle water to the extent possible, further limiting our water consumption. Biodiversity We have assessed our impact on biodiversity from a direct and indirect perspective. Our direct impact is through the operation of our sandpits in Poland. Here we are obligated to adhere to national and local regulations and procedures for the protection of biodiversity and ecosystems, which is supervised by authorities. Our commit- ment is therefore to comply with these require- ments. In the UK we have implemented small projects to further biodiversity in line with local regulations. The results of these are regularly monitored. Additionally, in our research we have not encountered any material cases or controver- sies in the building supply industry on biodiversity. Indirectly we procure sand and lime through external suppliers, who manage and operate quarries and sandpits that can have a potential impact on biodiversity. We have engaged with our suppliers to understand their policies, prac- tices, and initiatives on this subject to ensure we are aware of the contribution from our resource in-flow. We believe there are no material impacts or risks, as we only cooperate with suppliers from European countries with strong institutions and high legislative requirements. Circularity & waste We run our plants according to a “no waste of virgin materials” principle. All off-cuts and waste in the production process are re-circulated into new batches, meaning no waste occurs during this process. At this stage we have therefore concluded that there are no material impacts, risks or opportunities. ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting H+H has established a comprehensive risk management and internal control system where sustainability is embedded. This system includes: • Risk identification and assessment: Continuous identification and assessment of risks related to internal controls, including sustainability reporting, are conducted at Group and regional level. Each region assesses relevant risks, which are then considered by Group, when identifying and assessing the overall Group sustainability risks. Additionally, Group performs risk identifi- cation and assessment at reporting level, which includes processes within the ESG reporting system, as well as the financial reporting system. • Control activities: The Group has implemented internal control activities to mitigate identified risks in the sustainability reporting. These activ- ities are performed and reviewed by the regions to ensure the quality and validity of manage- ment reporting and the Annual Report. • Monitoring: The risk management process and internal controls environment is monitored and reviewed, involving the regions and anchored in the Group. This includes reporting to the Audit Committee. A controller visit plan, approved by the Audit Committee, ensures that each region is visited at least once a year to assess the maturity and effectiveness of internal controls. Risk Assessment Approach and Methodology H+H follows a structured risk assessment approach based on the COSO ERM and COSO Internal control guidance. • Risk Assessment: Risks are assessed based on their potential impact and likelihood. Significant risks are identified and prioritised. • Methodology: A combination of qualitative and quantitative methods is used to assess risks. For Enterprise Risk, we consider Operational and Strategic impacts along with HSE, Environ- ment and Compliance. For internal controls, financial statement lines and key ESG metrics are considered based on calculated materiality, as well as qualitative factors, such as fraud risk, volume and complexity. Key risks identified, related mitigation strategies, and controls For sustainability under Enterprise Risk Manage- ment, please refer to the segments under Risk Management called Climate and Health & Safety. For internal controls, we have identified the following key risks; measuring of consumption, measuring of conversion factors and measuring of volumes. Controls are implemented in all regions to miti- gate these risks and ensure the reliability of the sustainability reporting system and related reports. The risk corresponding controls are the following: reconciling input data in our ESG reporting system to supporting documentation, performing analyt- ical reviews, obtaining and comparing conversion factors. Integration of findings, risk, and mitigation reporting Each region assesses their risks and report to Group as input to the review of risk and mitiga- tion plans from the Enterprise Risk Management H+H International | Annual Report 2024 | 56In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements processes. Summaries are reported to the Audit Committee. The key risks and mitigations are detailed in the Risk Management section in this Annual Report. It is the responsibility of regional management to follow up on the planned mitiga- tions. Findings from the regional review are reported to regions as issues, tracked along with agreed upon actions plans. Statistics are reported to the Audit Committee. Group monitors the development of issues to ensure actions plans are met, in cooper- ation with regional management. BP-2 Uncertainties and estimates Most of our data is based on HR systems, meter readings, invoices and information directly from our suppliers. We generally therefore do not have many uncertainties and estimates in our figures. However, for scope 3 category 4 and 9 (trans- portation) we have applied a general emission factor as we do not assess types of trucks on an individual basis. For some office related working hours, we have applied norm-hours as the basis for calculation of a workday. We believe that these estimates are reasonable under the circumstances. We have currently not planned any changes to this approach. Incorporation by reference Disclosure requirement Data point Sub-section Page ESRS 2 GOV-1 All Corporate Governance in general 36-42 G1.GOV-1 §5 (b) Board of Directors 40-42 SBM-1 All Business Model, Strategic Focus Areas (HOME & Mission Zero) 19-20, 23-24 SBM-2 §45 (a) iii, iv Investor Relations 44 SBM-3 All Strategic Focus Areas (HOME, Zero Harm) 21, 23 ESRS 2 GOV-5 All Enterprise Risk Management (H&S and Climate) 47 E1-1 §15 Business Model, Strategic Focus Areas (Mission Zero) 23-24 E1-4 §34 (f) Business Model, Strategic Focus Areas (Mission Zero) 23-24 Climate-related scenario analysis In 2022, we conducted a climate-related scenario analysis using the TCFD guidelines to assess transition and physical risks and opportunities and how they might impact the resilience of our business strategy. The analysis was refreshed in 2023 and 2024. The analysis was based on the Net Zero 2050, Delayed Transition and Current Policies scenarios released by the Network for Greening the Finan- cial System (NGFS) in 2021. These describe warming of 1.5°C, 1.8°C and +3°C respectively¹. The scenarios considered H+H's full value chain, including our own operations, upstream cement and lime producers and downstream customers. The timeframe used in the scenarios defined short-, medium- and long-term as 2025, 2030 and 2050 respectively. The 2030 timeframe aligns with our science-based target and the 2050 timeframe aligns with our commitment to net zero emissions by 2050, in accordance with the Paris Agreement targets. The original TCFD process included a workshop with the top 50 leaders from across the Group to consider the three scenarios and identify climate-related risks and opportunities. The findings from the scenario analysis were presented to Group Management and the Board of Directors and were incorporated into our strategy. The climate-related risks are also incorporated into our annual Enterprise Risk Management (ERM) system. 1 For physical climate risk, we used data from the RCP 6.0 scenario in the IPCC Sixth Assessment Report published in September 2021. H+H International | Annual Report 2024 | 57In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 1.5°C 2°C 3-4°C Scenario 1 Scenario 2 Scenario 3 Net Zero 2050 scenario The Net Zero 2050 scenario is a scenario that limits global warming to 1.5 °C. It is an orderly scenario that includes stringent climate poli- cies and fast technology change to reach net zero emissions in 2050. Carbon prices rise to USD $185 t/CO 2 in 2030, USD $350 in 2040 and USD $675 in 2050. This scenario tests for immediate transition risk and low physical risk. The accelerated rollout of renewable energy and hydrogen infra- structure supports our goal to reduce emissions in our own opera- tions. The main variable for our ability to reduce the emissions intensity of our products is the speed at which carbon capture utilisation and storage technologies are introduced by cement and lime producers, and therefore for H+H to reduce our scope 3 emissions. Climate scenarios The key assumptions in the scenarios are as follows: Delayed Transition scenario In the Delayed Transition scenario, a delay means global emissions increase until 2030 and then strong policies are needed to limit warming to 2°C. Carbon prices rise rapidly from USD $70 t/CO 2 in 2030 to $325 in 2040 and $625 in 2050. This disorderly scenario tests for delayed and high transition risk. A delayed rollout of renewables and hydrogen infrastructure would slow our ability to reduce our operational emissions. However, this scenario aligns with the expected timing of the cement industry’s decarbonisation roadmap for the introduction of CCUS technologies and therefore would not undermine our own decarbonisation plans. Hot House World (Current Policies) scenario This scenario assumes that only currently implemented policies are preserved, leading to climate-related hazards and high physical risks. Emissions continue to grow until 2080 leading to 3-4°C of warming and severe physical risks. We paired this scenario with data from the IPCC RCP 6.0. In Europe, where we have operations, the frequency and intensity of heat extremes, including marine heatwaves, are projected to keep increasing. We do not believe there are any material physical risks to any of our assets, as none of our plants are located in areas with risk of earthquakes, wildfires, tornados or volcanoes. During our insurance review no flooding risks were detected either. H+H International | Annual Report 2024 | 58In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements ESRS 2 Appendix B Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Paragraph or page reference ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816, Annex II Material p. 38 ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II Material p. 38 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex I Material p. 51 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Indicators number 4 Table #1 of Annex I Article 449a Regulation (EU) No 575/2013: Commission Implement- ing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2(1) Material p. 63 ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Imple- menting Regulation (EU) 2022/2453 Template 1: Banking book Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 Not material ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implement- ing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 Material p. 66 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 Material p. 67 ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material p. 67 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Indicator number 6 Table #1 of Annex 1 Material p. 67 H+H International | Annual Report 2024 | 59In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Paragraph or page reference ESRS E1-6 Gross scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Imple- menting Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) Material p. 67-68 ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implement- ing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) Material p. 67-68 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1) Not material ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Article 449a Regulation (EU) No 575/2013; Commission Implement- ing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. Not material ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implement- ing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralised by immova- ble property - Energy efficiency of the collateral Not material ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Not material ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Not material ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Not material ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Not material ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Not material ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 Not material ESRS 2- IRO 1 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material ESRS 2- IRO 1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material ESRS 2- IRO 1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex 1 Not material H+H International | Annual Report 2024 | 60In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Paragraph or page reference ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 Not material ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Not material ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Not material ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Not material ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) Indicator number 13 Table #3 of Annex I Not material ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) Indicator number 12 Table #3 of Annex I Not material ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I Material p. 79 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II Material p. 79 ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Not material ESRS S1-1 workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I Material p. 77 ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I Material p. 82 ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material p. 78 ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I Material p. 78 ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material p. 81 ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Material p. 81 ESRS S1-17 Incidents of discrimination paragraph 103 (a Indicator number 7 Table #3 of Annex I Material p. 83 ESRS S1-17 Nonrespect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regu- lation (EU) 2020/1818 Art 12 (1) Material p. 83 ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I Not material ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Not material ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Annex 1 Not material H+H International | Annual Report 2024 | 61In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Paragraph or page reference ESRS S2-1 Nonrespect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regu- lation (EU) 2020/1818, Art 12 (1) Not material ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Not material ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regu- lation (EU) 2020/1818, Art 12 (1) Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 Not material ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regu- lation (EU) 2020/1818, Art 12 (1) Not material ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 Not material ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex 1 Not material ESRS G1-1 Protection of whistle-blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Material p. 86 ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) Material p. 87 ESRS G1-4 Standards of anti-corruption and anti- bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex 1 Material p. 87 H+H International | Annual Report 2024 | 62In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Environmental information List of material disclosure requirements Page reference E1 – Climate change GOV-3 Integration of sustainability-related performance in incentive schemes Page 50 E1-1 Transition plan for climate change mitigation Pages 63-64 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Pages 64-65 E1-2 Policies related to climate change mitigation and adaptation Page 65 E1-3 Actions and resources in relation to climate change policies Pages 65 E1-4 Targets related to climate change mitigation or adaptation Page 66 E1-5 Energy consumption and mix Page 67 E1-6 Gross scopes 1, 2, 3 and Total GHG emissions Pages 67-68 E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities Page 68 H+H is committed to an ambitious 1.5°C climate target. We want to be part of the solution in construction of sustainable housing and at the same time lowering global energy related carbon emissions. Creating more sustainable buildings is key to addressing the issue of CO 2 emissions coming from the buildings sector. Building materials, such as H+H’s AAC and CSU products, are well posi- tioned for long-term growth as they ensure ener- gy-efficient building structures and help to reduce buildings’ whole life emissions. E1-1 Transition plan for climate change mitigation We believe our strategy and business model are compatible with the transition to a sustainable economy by reducing our carbon emissions in line with our Science Based Targets and target of net zero emissions in 2050. This is in line with the Paris Agreement and the EU’s climate goals and compatible with the 1.5 degree scenario. Please refer to the 'Mission Zero' section under 'Strategic Focus Areas' for specific actions to reach net zero by 2050. We do not assess to have any locked-in GHG emissions as we believe that all emissions can be avoided through proper strategy and execution. Part of our economic activities are also covered under the EU Taxonomy and we are striving towards aligning all eligible activity. This will be done by implementing environmental plans on our plants and the increased use of more environmen- tally friendly transport vehicles for distribution. Science-based GHG emission reduction targets Our commitment is backed up by the validated reductions we will make in our scope 1, 2 and 3 GHG emissions by 2030. The ten-year science-based target builds on the product whole life analysis that was undertaken in 2020 which determined that our AAC and CSU products are on a path to achieve net zero — and possibly negative — emissions by 2050. Our emis- sions reduction targets are explained in disclosure requirement E1-4. Climate change mitigation actions To achieve the 2030 science-based target, we have developed a roadmap that includes the following levers which are outlined in disclosure requirement E1-3. 1. Increasing the share of renewable energy 2. Optimising plants including investments in energy efficient equipment 3. Improved energy mix 4. Supply-chain decarbonisation, in particular, reducing emissions from the production of lime and cement which represent most of our scope 3 emissions The transition plan is embedded in our strategy together with related initiatives. The transition plan, along with the initiatives to achieve it and the science-based target have been approved by In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2024 | 63Financial statements Group Management and the Board of Directors. The COO is responsible for the implementation of the transition plan. A dedicated amount of the CAPEX budget (5%-15%) is annually allocated to support emis- sion reduction projects. We also integrate perfor- mance measures related to GHG emissions reduc- tions into our management incentive schemes, which is described in the General Information section. Our current progress towards our transition plan is stated in the “Results” in the E1-6 section. H+H is not excluded from Paris-aligned benchmarks. Sources of H+H’s GHG emissions – baseline year Scope 1 and 2 emissions from operations account for about 25% of our carbon footprint, with about 75% of these emissions generated by the use of coal, oil, and gas in our plants. H+H’s total CO 2 e 2019 emissions used as a baseline for science-based targets Energy 75% Gas, coal, oil Operational equipment and offices 25% Electricity, steam 75% Value-chain emissions (Scope 3) Raw materials 95% Lime, cement Distributions and embedded energy emissions 5% Diesel 25% Emissions from operations (Scope 1+2) ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Climate change impacts The materiality assessment described in disclo- sure requirement IRO-2 identified the following material climate change mitigation impacts: Recarbonation during product lifetime (positive) Limestone-based products such as AAC and CSU absorb CO 2 during their lifespan, acting as permanent carbon sinks during the use phase of a building and when it is torn down and recy- cled. AAC products can absorb 77 kg of CO 2 per m 3 , with 80% of recarbonation achieved after 50 years and 95% within 80 years. This positive impact occurs in our downstream value chain (the end-users of AAC and CSU products) over the short, medium, and long term. Please refer to EAACA - Net-zero roadmap for AAC for underlying documentation. Emissions from own operations (negative) The emissions from our own operations have a material impact on climate, with 89t CO 2 of scope 1 and 2 emissions during 2024. This negative impact occurs over the short and medium term. With our net zero target we do not expect to have negative impact the long term. About 75% of the emissions in H+H’s carbon footprint are scope 3 emissions generated else- where along the value chain. The majority of these emissions (approximately 95%) are generated upstream by cement and lime manufacturers. This is a result of the chemical reaction that occurs when carbon is removed from limestone when it is heated to produce clinker for cement or lime. The CO 2 released is an unavoidable conse- quence of this reaction, as the limestone has absorbed CO 2 during its formation – just like a tree does. H+H was the first manufacturer of aircrete (AAC) and calcium silicate (CSU) products to have science-based targets approved in line with a 1.5-degree scenario. H+H International | Annual Report 2024 | 64In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Value chain emissions from extraction and processing of raw materials for production (negative) As previously mentioned, a significant amount of our emissions derives from our upstream value chain (cement and lime producers), causing a negative impact over the short and medium term. With our net zero target we do not expect to have negative impact in the long term. Climate change risks and opportunities In 2022, we undertook a climate scenario analysis using the TCFD guidelines, which was refreshed in 2024. The analysis considered H+H’s full value chain, including our own operations, upstream cement and lime producers and down- stream customers. No part of the value chain was excluded from the scenario analysis. Nor were any material physical risks or transition risks excluded. The climate scenario analysis is described in disclosure requirement IRO-1. The scenario analysis identified the following four transition risks and one opportunity. No material physical risks were identified. The findings from the scenario analysis are incor- porated in our strategy. Actions to mitigate the transition risks and capture the opportunity are described in disclosure requirement E1-3. The scenario analysis determined that after these mitigations are applied, H+H has no net-material financial impact in the short, medium, and long term. E1-2 Policies related to climate change mitigation and adaptation H+H’s Environmental, Social & Governance Policy (ESG Policy) addresses climate change mitigation by including our commitment to reduce scope 1, 2 & 3 emissions in line with net zero emissions by 2050, and the short-term targets we have set to achieve this. By covering all emission scopes, the policy applies to emissions from our own opera- tions, as well as our upstream and downstream value chain. The policy does not address energy efficiency, climate change adaptation and renewable energy deployment. However we plan to expand our ESG Policy to include this. The policy is distributed via H+H’s policy manage- ment system in the Group intranet. Stakeholders can access the policy via our group website. The policy is used to communicate our ambitions within ESG on a high level to the entire organisa- tion. In daily operations, the policy is supported by process descriptions and manuals, which describe in detail our expectations and actions. These are made in cooperation with the relevant internal, local stakeholders to ensure ownership. Group Management has overall responsibility for the ESG policy, while the regional Managing Direc- tors are responsible for implementing it within their countries as heads of their respective legal entities. The policy is reviewed annually by Group Management. E1-3 Actions and resources in relation to climate change policies Mitigating actions towards climate risks H+H has developed a roadmap until 2030 that reduces our carbon emissions. A dedicated amount of the CAPEX budget (between 5% and 15%) is annually allocated to fund emissions reduction projects. We address our scope 1 & 2 emissions through the following levers and actions: 1. Increasing the share of renewable energy H+H’s use of renewable electricity will increase by purchasing either RECs or PPAs. In 2024, we increased the use of renewable electricity in our plants in CWE and reached 100% renewable electricity in our consumption. We have therefore completed this target one year ahead of schedule. 2. Investments in energy efficiency We are continuously implementing energy-saving projects and embed these in other upgrade projects. During 2024, these have included burner upgrades, valve replacements and general equipment improvements. In addition to general improvements, we will focus on projects related to heat recovery and steam in 2025. These upgrades and modernisations are essential in optimising our manufacturing footprint and equipment, and the investments do not solely rely on sustaina- bility decision criteria. 3. Improved energy mix We are improving our energy sources by converting from coal to natural gas and plan to convert from natural gas to fossil-free energy sources, such as green hydrogen when reasonably possible. We have already begun our energy mix improvement by converting one plant in Poland from coal to natural gas. 4. Sup ply-ch ain dec arbonis ation H+H addresses our scope 3 emissions through the following levers and actions: Low-carbon cement and lime We focus on having a continuous dialogue with our lime and cement producers. We will collaborate on carbon reduction projects with those who have committed to a science-based target or have a credible emissions reduction pathway to net zero emissions by 2050. According to these, net zero will be achieved mainly through the use of carbon capture storage and utilisation (CCSU) and lower carbon ingredients, switching from fossil fuels to renewable energy to heat kilns, and through recarbonation. In 2024, we have tested the use of new lime with initial positive results but with still more testing and development needed. H+H International | Annual Report 2024 | 65In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 100% 10% -17% -4% -35% 54% 2019 baseline emissions Organic growth and improvements, net (2019-2030) Increase share of renewable electricity (2022-2025) Investments in energy eciency (2020-2030) Improved energy mix (2022-2030) 2030 emissions 0 20 40 60 80 100 120 A reduction of clinker content in cement used for AAC products has already resulted in a reduction in scope 3 emissions - see disclosure requirement E1-9 for further details. Low emissions transport The emissions-reduction pathway for the trans- port industry requires transport companies to reduce emissions by approximately 30% by 2030. We expect our transport suppliers to provide such low-emissions transport services in the future. E1-4 Targets related to climate change mitigation and adaptation H+H had three climate-related targets covering emissions from our own operations as well as our supply-chain emissions, and energy consump- tion. The emissions reduction targets for 2030 have been verified by the Science Based Targets initiative as being in line with the 1.5°C scenario. The energy consumption target was reassessed during 2024 and it was decided to remove it as a separate target, as we see it as part of our SBTi strategy. Baseline Target SBTI targets Unit 2019 2030 2050 Scope 1+2 CO 2 emissions Tonnes 212,997 115,018 0 Scope 3 CO 2 intensity kg/m 3 161.9 125.8 0 * 28% of the baseline emissions are related to scope 2. For the 2030 target, 0% are related to scope 2. H+H's roadmap to reduce emissions for scope 1+2 in line with its science-based target Please refer to the 'Mission Zero' section under 'Strategic Focus Areas' for specific actions to reach net zero by 2050. The baseline year 2019 is based on the fact that we prepared our SBTi-submission during 2021 and our most recent baseline year (2020) was not representative due to the Covid-19 pandemic. 2019 was the most recent year to choose and represents a “normal” production year in H+H. The most critical assumptions in our roadmap is the development of fossil-free energy in opera- tions and the use of carbon capture storage and utilisation from our suppliers. Scope 2 calculated in the baseline and target setting is based on the market-based approach. For our current performance against target, please refer to our “GHG emissions” section. H+H International | Annual Report 2024 | 66In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 24% 0% 61% 4% 44k MWh 18k MWh 99k MWh 2k MWh 255k MWh 11% 19% 3% 65% 5% 8% 25k MWh 41k MWh 93k MWh 12k MWh 315k MWh 20232024 Natural gasCoal Renewable electricity Oil Fossil steam and electricity Breakdown of energy comsumption (MWh) Energy intensity per net revenue 2023¹ 2024 % Total energy consumption from activities in high climate impact sectors per net-revenue from activities in high climate impact sectors (MWh/Monetary unit) 182 152 -17% Total energy consumption (MJ/m 3 ) 575 549 -5% Total energy consumption (MWH) 486.095 417.035 -14% Total net revenue (mDKK) 2.672 2.747 3% 1 Not covered by the Independent Auditor’s limited assurance report E1-5 Energy consumption and mix Our energy consumption mainly consists of natural gas and coal for generating steam into the autoclaves as well as electricity used to operate plant equipment. As part of our science-based target we are working towards lowering the mix from coal and introducing renewable energy into the mix – such as biogas, hydrogen, or biomass – to generate steam. Additionally, all our plants are committed to efficient energy management and are ISO 50001 certified. In 2024, we saw the full effect of our restructur- ing-actions done in 2023 with the closing of inef- ficient plants and optimising production patterns. This has resulted in a record low energy consump- tion of 549 MJ per m 3 showing that we are on the right track with our HOME strategy. Unfortunately we did not meet our 2024 target of 525 MJ per m 3 but we are still satisfied with the result, given that the current market situation is still under pressure, making it more difficult to fully optimise our plant output. The increase of coal is due to a relative higher production coming from our Polish sites during 2024. Energy intensity based on net revenue The decrease in energy per net revenue is related to more efficiency and the production volume being higher than the sales volume. 100% of H+H's activities are in the high climate impact sector. E1-6 Gross scopes 1, 2, 3 and total GHG emissions The methodologies, significant assumptions and emission factors used to calculate H+H’s GHG emissions are provided in the Environmental accounting policy section. Scope 1+2 In 2024, we have been able to further reduce our carbon intensity emissions to a record low 32.5kg per m 3 which is 28% lower than our baseline of 45.3kg per m 3 . This reflects the actions and investments to improve the CO 2 footprint of our plants. This year, our plants are consuming 100% renewable electricity and we have continued our energy improvement by using 5% less energy per m 3 produced compared to last year. For 2025, we will continue to implement further CO 2 -reducing projects. Specific climate ambitions • 100% share of renewable electricity (incl. PPAs / RECs) by 2024 - Done √ • Convert all coal plants to natural gas, or other more sustainable sources, by 2030 • Have at least one scope 1+2 neutral plant by 2030 H+H International | Annual Report 2024 | 67In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Retrospective Milestones and target years Base year (2019) 2023¹ 2024 % vs. LY 2030 Annual % target / Base year Scope 1 GHG emissions Gross scope 1 GHG emissions (tCO 2 eq) 153,887 93,602 81,884 -13% 115,018 2 4.2% Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) 0% 0% 0% 0% Scope 2 GHG emissions Gross location-based scope 2 GHG emissions (tCO 2 eq) 59,109 29,369 25,522 -13% Gross market-based scope 2 GHG emissions (tCO 2 eq) 59,109 15,198 6,885 -55% Significant scope 3 GHG emissions Total Gross indirect (scope 3) GHG emissions (tCO 2 eq) 758,327 442,582 394,435 -11% Reduce by 22% per m 3 2.0% 1 Purchased goods and services 700,604 400,600 351,484 -12% 3 Fuel and energy-related activities (not included in scope 1 or scope 2) 34,964 23,071 19,234 -17% 4 Upstream transportation and distribution 13,656 10,932 14,680 34% 9 Downstream transportation 9,104 7,978 9,038 13% Total GHG emissions Total GHG emissions (location-based) (tCO 2 eq) 971,324 565,553 501,842 -11% Total GHG emissions (market-based) (tCO 2 eq) 971,324 551,381 483,205 -12% ¹ Not covered by the Independent Auditor’s limited assurance report | ² Scope 1+2 is a combined target * ESG figure subject to limited assurance in 2023 GHG Intensity based on net revenue GHG intensity per net revenue 2023¹ 2024 % Total GHG emissions (location-based) per net revenue (tCO 2 eq/Monetary unit) 212 183 -14% Total GHG emissions (market-based) per net revenue (tCO 2 eq/Monetary unit) 206 176 -15% Net revenue 2,672 2,747 3% 1 Not covered by the Independent Auditor’s limited assurance report Scope 3 Scope 3 intensity was 144.2kg per m 3 which is an improvement of 1% compared to last year and ahead of our science-based target for 2024. The positive development was driven by improvement in emission factors from our suppliers, as they continue to invest in reducing their carbon footprint. For 2025, we continue collaborating with cement and lime producers that have committed to a science-based target or have a credible emissions reduction pathway. While concrete projects are underway, we do not yet know the quantitative impact. Total emissions As shown in the GHG table, all our nominal emissions have declined due to the market downturn and general improvements. E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities H+H has no net-material financial impact in the short, medium, and long term as described in the General Information section. As these financial effects do not include all the require- ments of E1-9, We have opted to exercise the phase-in allowance to omit the financial effects. H+H International | Annual Report 2024 | 68In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Controls Data regarding energy consumption and our GHG emissions are reported through the operations management system that follows normal financial processes to ensure consistency and is validated against the external financial reporting. The data is verified through internal controls, analysis, benchmarks, and monthly business meetings. Unless stated no numbers or metrics have been validated by any external body other than the assurance provider. Definitions Climate • CO 2 e scope 1 is calculated as combusted fuel type x conversion factor per fuel type. For 1 tonnes of coal a conversion factor between 19 and 23 to GJ is used, based on the quality of the product. For other combustion fuels an emis- sion factor is applied based on DEFRA factors • CO 2 e scope 2 is calculated as purchased MWh x conversion factor of 3.6 to GJ. For both loca- tion- and market-based electricity, emission factors are based on AIB. Additionally, for market-based we adjust for the purchase of RECs in our emissions. We only use RECs when calculating our market-based emissions • CO 2 e per m³ (scope 1), CO 2 e per m³ (scope 2) and CO 2 e per m³ (scope 3) are calculated as scope 1, scope 2 (market based) and scope 3 divided by net-production volume • During our initial scope 3 assessment, we screened all 15 types of activities. Besides activity 1,3,4 and 9, remaining activities were deemed immaterial and out of our reporting scope. For scope 3 activities 1 and 3, we have used primary data for all sources and for activ- ities 4 and 9, we have used industry generic factors • CO 2 e scope 3 category 1 is calculated as purchased materials in scope x efficiency factor. Where efficiency factors are disclosed by the supplier this is used. If such are not available generic industry efficiency factors are applied • CO 2 e scope 3 category 3 is calculated as consumed energy x efficiency factor from DEFRA • CO 2 e scope 3 category 4 and 9 are calculated as total transported km of our products x generic transport efficiency factor • Total energy is calculated as combusted fuel type x power factor per fuel type + used electricity • Total energy per m³ is calculated as total energy divided by production volume • Production volume is defined as produced AAC and CSU (net) measured in m 3 Environmental accounting policy H+H International | Annual Report 2024 | 69In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements EU Taxonomy H+H’s EU Taxonomy disclosure for the annual reporting period of 2024 has been prepared in accordance with the Taxonomy Regulation EU (2020/852) and its supplementing delegated acts. The disclosure covers the taxonomy-eligible and taxonomy-aligned economic activities and their financial KPIs as a proportion of the Group’s turnover, capital expenditure (CAPEX), and opera- tional expenditure (OPEX) in 2024. Reporting principles Due to the EU Taxonomy being under continuous development and the evolving aspect of the Regu- lation, we have decided to reassess the reporting requirement and update our accounting principles to be more in line with the current legislative envi- ronment. Figures for 2023 have therefore been restated. We will continue to follow the develop- ment of the regulation and assess our approach accordingly. Our economic activities are considered regardless of their geographical location, whether inside or outside of the European Union. Economic activities Taxonomy-eligible economic activities According to note 3 of the consolidated financial statement, H+H revenue streams consist of sale of goods and related transport services. As such, we have concluded that the following economic activities qualify as taxonomy eligible economic activities: • (3.5) Manufacture of energy-efficient building equipment • (6.6) Freight transport services by road Both H+H’s product groups (AAC and CSU) are classified under NACE code 23.61 and are as such covered by the Delegated Act (EU) 2021/2139 of June 4, 2021 in Chapter 3.5 as key components for external wall systems. The product groups contribute to achieving the climate change miti- gation target if they fulfil the technical screening criteria of having a U-value lower or equal to 0,5 W/m 2 K. For external wall systems, a U-value lower than 0.5 W/m²K is required by law in all coun- tries in which we produce and sell our products. As such, the substantial contribution screening criteria are met. Products from both AAC and CSU product groups have multiple applications. In addition to being used for external walls, they can also be used as partition walls. When determining which of our products that are within scope, we have looked at the intended use of the products. Turnover from products where the intended use is to be part of an external wall system is reported as eligible, whereas turnover from products where the intended use is partition walls is reported as not eligible. Turnover from accessories needed to build the external wall such as mortar and glue are also reported as eligible because such accessories are considered to be key components in an external wall system. Pallets used for trans- portation are not included in the scope since only plastic pallets are eligible under the EU Taxonomy. When calculating the taxonomy-eligible turnover under CCM 3.5 for products which can be used in both external walls and partition walls, we have used allocation keys to determine the split between sale of products used for external walls and partition walls. As each of the countries in which we sell our products have different ways of building, allocation keys are based on individual market analysis. Analyses were made by local sales departments which have indepth knowledge of the local building markets. Hence, we assess their input to be highly valid. Transport of goods for sale is a separate revenue stream classified under NACE code 49.41 which is covered by Chapter 6.6 ‘Freight transport services by road’ in the delegated act. Taxonomy-eligible turnover During our screening, we identified 69% eligible turnover. The taxonomy-eligible turnover refers to revenue from sales of products and key compo- nents used for external walls (CCM 3.5), as well as freight revenue derived from sales of external wall building materials (CCM 6.6). Revenue is defined as revenue included in the consolidated financial statements for the year 2024. Taxonomy-eligible CAPEX During our screening, we identified 62% eligible CAPEX. The taxonomy-eligible CAPEX is divided between production related activities (CCM 3.5) and activities related to transport (CCM 6.5 and CCM 6.6). To determine the proportion of produc- tion related CAPEX associated with taxonomy-eli- H+H International | Annual Report 2024 | 70In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements gible economic activities, the same allocation key as for turnover is used. This is based on the fact that our plants produce both eligible and non-el- igible products, and it is therefore not possible to do individual distinctions. Taxonomy eligible activity related to transport contains leased company cars (CCM 6.5) and forklifts (CCM 6.6). CAPEX is defined as additions of tangible assets and intangible assets (excluding goodwill) as included in the consolidated financial statements for the year 2024, note 13 & 14. Taxonomy-eligible OPEX During our screening, we identified 63% eligible OPEX. Operating expenditures as per the EU Taxonomy are defined as directly incurred, non-capitalizable cost relating to research and development, building renovations, short-term leases, and the repair and maintenance of prop- erty, plant, and equipment in 2024. To determine the proportion of OPEX from products or services associated with taxonomy-eligible economic activities, the same allocation key as for turnover is used for the same reason as when determining taxonomy-eligible CAPEX. Taxonomy-aligned economic activities Our economic activities are considered taxono- my-aligned if they: • make a substantial contribution to the achieve- ment of one or more of the six environmental objectives set out in the Taxonomy Regulation • do not significantly harm any of the other envi- ronmental objectives, and • are carried out in compliance with the minimum social safeguards. Do no significant harm Other environmental objectives (2–6) UK CWE Poland Climate change adaptation √ As part of our ESRS reporting and work towards having targets validated by the SBTi, we have performed climate risk assessments. Sustainable use and protection of water and marine resources √ We have a water use and protection management plan in place as part of our ISO 14001 certification. We believe that we do not do any significant harm, but we are working towards getting the necessary documen- tation requirements such as an ISO 14001 certification. Transition to a circular economy √ Our products are designed for high durability and recyclability. We employ a ‘zero waste to landfill’ principle and recycle our AAC waste back into production. Pollution prevention and control √ No substances of concern are used in H+H’s prod- ucts and no accessories from other vendors are sold from these plants. No substances of concern are used in H+H’s products. We are currently working with vendors to document that our accessories sold do not contain substances of concern. Protection and restoration of biodiversity √ Dedicated efforts towards protection of biodiversity are part of our ISO 14001 and BES: 6001 certifica- tions, ensuring that the generic criteria for protec- tion and restoration of biodiversity are met We believe that we do not do any significant harm, but we are working towards getting the necessary docu- mentation requirements such as an ISO 14001 certification. √ Achieved in all regions √ Achieved in the UK As described above, H+H assesses that a certain share of our turnover contributes to climate change mitigation by meeting the substantial contribution criteria for external wall systems with U-value lower or equal to 0.5 W/ m 2 K. For an economic activity to be classified as sustainable under the taxonomy, it must fulfil the criteria for not doing significant harm under the other environmental objectives included in the taxonomy. While environmental management is done in all regions, the approach is not consistent across the Group, depending on region and depending on the individual plants. Below is an overview of our initiatives in our UK plants where we meet the objectives for aligned economic activities. Turnover from these plants is reported as taxon- omy-aligned economic activity. In addition, we describe initiatives in our other regions where we only partially meet the objectives. H+H International | Annual Report 2024 | 71In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 42% 38% 20% 21% 42% 37% 27% 42% 31% Taxonomy-eligible activities Taxonomy-aligned acitvities Taxonomy-non-eligible activities Minimum safeguards Compliance with minimum social safeguards essentially relates to the areas of human and labour rights, corruption prevention, fair taxation and fair competition. H+H have implemented processes and guidelines that ensure compliance with all minimum standards in line with the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights and the Declaration by the International Labour Organization. Our efforts are further described in the Governance section, when reporting on our Code of Conduct, Anti-corruption policy and Tax policy. Turnover from the regions where not all DNHS criteria are met is reported under section A.2. Taxonomy-eligible but not environmentally sustainable activities (Taxonomy-non-aligned activities). The eligible economic activity under CCM 6.6 does not meet the substantial contribution criteria (zero tailpipe emissions) and is as such reported under section A.2. Taxonomy-eligible but not environmentally sustainable activities (Taxono- my-non-aligned activities). EU Taxonomy Disclosure 2024 Revenue CAPEX OPEX Taxonomy-eligible activities 69% 62% 63% Taxonomy-non-eligible activities 31% 38% 37% Taxonomy-aligned acitvities 27% 20% 21% Taxonomy-non-aligned acitvities 73% 80% 79% CAPEX Revenue OPEX Nuclear and fossil gas related activities 1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. No 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. No 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. No Fossil gas related activities 4 The undertaking carries out, funds or has exposures to construction or operation of electricity gener- ation facilities that produce electricity using fossil gaseous fuels. No 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. No 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No H+H International | Annual Report 2024 | 72In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Financial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm") Economic activities - Turnover (1) Code (2) Absolute turnover (m DKK) (3) Proportion of turnover 2024 (%) (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular economy (9) Biodiversity (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular economy (15) Biodiversity (16) Minimum Safeguards (17) Taxonomy aligned (A.1.) or eligble (A.2.) turn over, 2023 (%) (18) Category (enabling activity) (19) Category (transitional activity) (20) A. Taxonomy – Eligible Activities A1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of energy-efficient building equipment CCM 3.5 748 27% Y N/A N/A N/A N/A N/A N/A Y Y Y Y Y Y 25% Turnover of environmentally sustainable activities (Taxonomy-aligned) 748 27% N/A N/A N /A N/A N/A N/A N/A N/A N/A N/A N/A N /A N/A 25% Of which Enabling 0 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N /A N/A 0% E Of which Transitional 0 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0% T A2. Taxonomy-eligible but not aligned activities Manufacture of energy-efficient building equipment CCM 3.5 889 32% Y N/A N/A N/A N/A N/A N/A Y N /A N/A Y N/A Y 35% Freight transport services by road CCM 6.6 268 10% Y N /A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 9% Turnover of not-aligned activities 1,157 42% 44% Turnover of taxonomy-eligible activities (A1+A2) 1,905 69% 70% A. Taxonomy – Non-Eligible Activities B. Turnover of non-eligible activities 843 31% Total 2,747 100% Quantitative breakdown of taxonomy-aligned turnover The primary sources of turnover contributing to the numerator of the turnover KPI in 2024 are generation and sale of blocks and related accessories in the UK region (DKK 748 million) EU Taxonomy – Turnover H+H International | Annual Report 2024 | 73In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Financial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm") Economic activities - CAPEX (1) Code (2) Absolute CAPEX (m DKK) (3) Proportion of CAPEX 2024 (%) (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular economy (9) Biodiversity (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular economy (15) Biodiversity (16) Minimum Safeguards (17) Taxonomy aligned (A.1.) or eligble (A.2.) CAPEX, 2023 (%) (18) Category (enabling activity) (19) Category (transitional activity) (20) A. Taxonomy – Eligible Activities A1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of energy-efficient building equipment CCM 3.5 35 20% Y N/A N/A N /A N/A N/A N/A Y Y Y Y Y Y 20% CAPEX of aligned activities 35 20% N /A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 20% Of which Enabling 0 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N /A N/A 0% E Of which Transitional 0 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0% T A2. Taxonomy-eligible but not aligned activities Manufacture of energy-efficient building equipment CCM 3.5 56 32% Y N /A N/A N/A N/A N/A N/A Y N /A N/A Y N/A Y 35% Freight transport services by road CCM 6.6 17 10% Y N /A N/A N/A N/A N/A N/A N/A N/A N/A N /A N/A N /A 9% CAPEX of non-aligned activities 73 42% 44% Total (A1+A2) 108 67% 64% A. Taxonomy – Non-Eligible Activities CAPEX of non-eligible activities (B) 66 38% Total (A+B) 173 100% No formal CAPEX-plan in relation to EU-taxonomy has been developed in 2024, but will be reassessed in 2025. Quantitative breakdown of taxonomy-aligned CAPEX The primary sources of CAPEX contributing to the numerator of the CAPEX KPI in 2024 are additions from tangible and intangible assests from the UK region (DKK 43 million) EU Taxonomy – CAPEX H+H International | Annual Report 2024 | 74In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Financial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm") Economic activities - OPEX (1) Code (2) Absolute OPEX (m DKK) (3) Proportion of OPEX 2024 (%) (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular economy (9) Biodiversity (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular economy (15) Biodiversity (16) Minimum Safeguards (17) Taxonomy aligned (A.1.) or eligble (A.2.) OPEX, 2023 (%) (18) Category (enabling activity) (19) Category (transitional activity) (20) A. Taxonomy – ligible Activities A1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of energy-efficient building equipment CCM 3.5 27 21% Y N/A N/A N/A N/A N/A N/A Y Y Y Y Y Y 21% OPEX of environmentally sustainable activities (Taxonomy-aligned) 27 21% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 21% Of which Enabling 0 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N /A N/A 0% E Of which Transitional 0 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0% T A2. Taxonomy-eligible but not aligned activities Manufacture of energy-efficient building equipment CCM 3.5 41 32% Y N/A N/A N/A N/A N/A N/A N/A N/A N/A Y N/A Y 35% Freight transport services by road CCM 6.6 12 10% Y N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 9% OPEX of non-aligned activities 53 42% 44% Total (A1+A2) 80 63% 65% A. Taxonomy – Non-Eligible Activities OPEX of non-eligible activities (B) 46 37% Total (A+B) 126 100% H+H does not have any eligible OPEX, hence no OPEX is allocated to the numerator. Quantitative breakdown of taxonomy-aligned OPEX The primary sources of OPEX contributing to the numerator of the OPEX KPI in 2024 are maintenance and repair costs from the UK region (DKK 27 million) EU Taxonomy – OPEX H+H International | Annual Report 2024 | 75In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements List of material disclosure requirements Page reference S1 – Own workforce SBM-2 Interests and views of stakeholders Page 52 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Pages 76, 78, 82 S1-1 Policies related to own workforce Pages 77-79, 82 S1-2 Processes for engaging with own workforce and workers' representatives Page 82 S1-3 Processes to remediate negative impacts and channels for own workforce Page 82 S1-4 Taking action on material impacts on own workforce, and approaches to managing risks and pursuing opportunities related to own workforce, and effectiveness of those actions Pages 77, 79, 82 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Pages 77, 79-80, 83 S1-6 Characteristics of the undertaking’s employees Pages 80-81 S1-7 Characteristics of non-employees in the undertaking’s own workforce Pages 80-81 S1-8 Social dialogue Page 83 S1-9 Diversity metrics Page 81 S1-13 Training and skills development metrics Page 83 S1-14 Health & Safety metrics Pages 77-78 S1-15 Work-life balance metrics Page 83 S1-16 Remuneration metrics (pay gap and total remuneration) Page 81 S1-17 Incidents, complaints and severe human rights impacts Page 83 * None of our Social policies are inconsistent with UN Guiding Principles on Business and Human Rights Social information People are the foundation for our success. We aim to provide a safe, attractive, and meaningful workplace for our employees. In this section, we take a thematic approach to the sustainability topics identified in our materiality assessment. Production materials While our finished products do not pose any health risks, employees working in our plants can potentially be exposed to the following substances used in production that pose health risks: • Silicate dust, a known carcinogen when exposed above a known limit • Mineral oils that can cause dermatitis • Aluminium dust which is an irritant but with no recognised inhalation, oral or dermal chronic effects • Alkalis and acids which are harmful and can cause chronic effects The impacts affect employees and non-em- ployees, including self-employed people and people provided by third parties. The impacts occur in all our plants over the short, medium and long term. They are systemic due to the nature of our production. Due to the low exposure to the above substances it was not identified as a material risk. No material opportunities related to health & safety were identified in the materiality assessment. Health and Safety ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model In H+H we believe that everyone should come to work and return home injury-free. Working in an industrial plant comes with inherent health and safety risks from the heavy equipment and substances used in the production process. Managing these risks effectively is key to main- taining a strong safety performance as well as enabling us to provide healthy, safe, and secure working conditions for all people working on our sites. This mindset is transformed into our 'ZERO HARM' strategy as disclosed in our Business and strategy section. Please refer to section Zero Harm. Material health & safety impacts In our materiality assessment, we identified the following material health & safety impacts: Industrial accidents The majority of our employees work in our plants where they operate heavy machinery with a potential high risk of accidents which can result in the direct impact of life-altering injuries or death. In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2024 | 76Financial statements Impacts, risks and opportunities management To effectively manage our impacts and to main- tain a strong safety performance, we have a Group Health & Safety Policy, a strategy for 2024-2026 and a health and safety management system. In practice, we prevent safety incidents through regular training in Health & Safety, monitoring of exposure levels of substances used in production, prevention and access controls, incident manage- ment, proper PPE, continuous and regular assess- ment of plants, offices, processes, and equipment as well as target setting and progress measure- ment across the Group. S1-1 Policies Health & Safety Policy It is our key priority to provide a safe and healthy work environment. This is the core objective of our Group H&S Policy (H&S Policy), and it is the foundation on which we prevent, mitigate, and remediate all of H+H’s impacts elated to H&S. The COO has overall responsibility for the policy, while the regional Managing Directors are respon- sible for implementation within their countries as heads of their respective legal entities. They are supported by the regional Operations Direc- tors, local safety officers and the Group Health & Safety leadership team. The policy covers H+H employees across the entire workforce but does not include workers in the value chain. The policy is distributed via our policy management system and is prominently placed on notice boards at all sites and on the Group website. All employees are required to confirm, either physically or digitally, that they have read and understood the policy. The H&S Policy is reviewed annually by Group Management and the Group H&S Director. The review is based on our Maturity Audit process, and on input provided by the functional manage- ment teams and their employees. In daily operations, the policy is supported by topic specific standards and guidance, which addresses the risks and impacts directly. S1-4 Actions in 2024 At the beginning of 2024, a new H&S strategy and vision for 2024-2026, titled ZERO HARM, was launched together with a major communica- tions campaign targeting all employees. The new strategy focuses on behavioural-based safety and on driving safety through the line to embed a culture that embraces safety across our opera- tions, moving towards our ambition of zero harm. When working with heavy machinery, even a small lapse of attention can have dire consequences. We therefore want to foster a culture, where safety is always top of mind, highlighting each individual’s responsibility for ensuring their own safety and that of their colleagues. In the event of an incident or high potential near miss incident, communication is disseminated throughout the organisation with follow-up on actions to prevent reoccurrence. To mitigate the impact related to exposure to various production materials, we provide the appropriate PPE as well as regularly monitoring exposure levels of substances All plants are subject to both internal and external audits using our Maturity Audit Model with each plant having a Safety Improvement Plan which is actively monitored to gauge the effectiveness of our actions and initiatives. To further evaluate the effectiveness of our initiatives, performance on H&S KPIs including absence and incidents is monitored monthly and reported to Group Management. In 2025 we plan to continue the focus on behav- ioural based safety via training, communication and lessons learned from incidents and high potential events. This includes training employees to have a more proactive approach to spotting potential hazards and unsafe conditions and behaviours. Our aim is to further improve our safety culture shifting from a reactive focus to a pro-active and positive one with the end goal of zero harm. S1-5 Targets To measure our progress on safety, we have a target related to our Lost Time Incident Frequency (LTIF) rate which was included in the short-term incentive plan for 2024 to highlight its impor- tance. Our current target concluded in 2024 and we have therefore set a new target for 2030 where we want to achieve a long-term improved LTIF rate of 2.1 compared to our historic performance. The rate is measured every year to track progress on the target. Based on the number of incidents and the initiatives we have embedded in the business, we projected an improved H&S performance to determine the specific KPI we want to reach and when. The new target is a result of the collective efforts between Group Management, the regional Managing and Operations Directors, as well as the H&S leaders across the Group. S1-14 Health and safety metrics For the tenth consecutive year, there were no fatalities at H+H. In 2024 we saw another record result with an LTIF rate of 0.9, which is well below our 5 year target of 3.5 in 2024. We attribute our positive result to our continued focus on leading in safety for all levels of operational management, behavioural safety and close follow-up of inci- dents and high potential near-miss incidents. Short-term sickness absence has improved from last year, and we managed to reach our target level of 8 days per year per FTE. It was decided by Group management not to renew the target. H+H International | Annual Report 2024 | 77In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 2024 2023¹ 2022¹ 2021¹ Sickness absence Days per FTE 12 14 13 12 Sickness absence, short-term Days per FTE 8 10 11 10 Fatalities (including own workforce and value chain workers) Headcount 0 0 0 0 Fatalities as a result of work-related injuries AND work-related ill health 0 0 0 0 Lost-time incident frequency (LTIF) Incidents per mil. hours 0.9 3.4 3.6 5.5 Lost days to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health 83 787 313 263 Total recordable incidents 7 18 77 103 Total recordable contractor incidents 0 0 3 3 Total recordable incident rate (TRIR) Incidents per mil. hours 3 7 25 35 Number of cases of recordable work-related ill health 0 0 Near miss frequency rate (NMFR) Reports per mil. hours 2.757 People in own workforce covered by H+H’s H&S Management system % 100% 100% * ESG figure subject to limited assurance in 2023 1 Not covered by the Independent Auditor’s limited assurance report Equal treatment & opportunities for all ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model We know people are different and we believe that differences are what enable us to see new oppor- tunities and create better solutions. We want all employees and stakeholders to feel that their contribution is valid, and we do not tolerate any form of discrimination. We do not have a formal link to our Group strategy and business model, as these topics are driven locally by the regional management teams. Material impacts In the materiality assessment, we identified the following material impacts related to equal treat- ment and opportunities: Gender equality & equal pay We are committed to equal pay for equal work, promoting gender equality and ensuring equal access to resources and opportunities regardless of gender. This has an impact on our workforce as we believe there are clear links between perceived and actual equality to employee cohesion and well-being. At the moment we do not have suffi- cient data to determine whether the impact is systemic or not but further investigation is planned for 2025 in preparation for the EU Direc- tive on pay transparency. Our current belief is that we enforce equal pay for equal work in all regions. Anti-harassment As employers we are responsible for providing a harassment-free work environment and thus have an impact on our employees. We believe the impact to be non-systemic, occurring over the short and medium term affecting employees in our own workforce. Gender diversity The building materials industry is not traditionally known for being gender diverse and we therefore risk fostering workplaces with low diversity. As a result we believe this impact to be systemic in nature and not related to individual incidents. Both impacts related to equal treatment occur over the short and medium term. Impact related to equal pay only affects those directly employed by H+H. Impacts related to diversity affects both our own employees, non-employees (both self-employed people and people provided by third party organisations) and contractors. No material risks or opportunities were identified in the materiality assessment. Impacts, risks, and opportunities management We approach the impacts related to equal treat- ment through a mixture of Group and local initia- tives. We believe a safe and inclusive work culture is best achieved by encouraging our employees to speak up and take ownership of creating a work environment they feel they belong to, with clear support from senior management. S1-1 Policies related to equal treatment Diversity Policy The core objective of H+H’s Group Diversity Policy is to foster an inclusive and open working climate where diversity is embraced and promoted. By making our principles on diversity clear, we want to mitigate negative impacts related to lack of diversity. While gender is one dimension of diversity, we fully recognise that diversity is any aspect that differentiates our employees and enables diversity of thought. This includes ethnicity, age, national origin or citizenship, religion or belief, political conviction, sexual orientation, marital status, pregnancy and maternity, disa- bility or genetic information or any other legally H+H International | Annual Report 2024 | 78In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements protected categories. We do not tolerate any form of discrimination towards employees or stakeholders. All reports of discrimination and harassment are fully investigated and may result in disciplinary actions or employment-related consequences for the perpetrator. Besides the Code of Conduct, we currently do not have any other specific Group policies aimed at eliminating discrimination or harassment. The policy applies across all of H+H and includes but is not limited to recruitment, promotion and development opportunities. The policy is commu- nicated to all new employees, and in the case of updates, to the entire workforce. The policy is also available on our Group website. The Board of Directors has adopted the Group Diversity Policy while the CEO is overall respon- sible. Regional Managing Directors are respon- sible for implementation within their countries as heads of their respective legal entities. S1-1 Policies related to human rights Human Rights Policy We strongly support human rights and employee rights as set out in the UN Universal Declaration of Human Rights and by the International Labour Organization. We have a dedicated Human Rights policy and it is further stated in our Code of Conduct which is the foundation for our compli- ance and other policies. The purpose of our Human Rights policy is to communicate – both externally and internally - H+H’s commitments to respect human rights, as well as to provide guidance to our management and employees on appropriate behaviour when it comes to human rights issues. In short this means, that H+H: • Respects freedom of association and the right to collective bargaining • Supports the principle of equal opportunity and does not accept harassment or discrimination • Prioritises safety and adheres to all applicable local laws related to ensuring proper working conditions • Does not accept human trafficking, the use of child labour and the use of forced or compul- sory labour Many aspects of our business touch on human rights, including working conditions, health and safety, and data privacy. In addition to the Code of Conduct and Human Rights policy, this is reflected in many of our other policies, as outlined in our overview of our sustainability-related policies and systems in the Governance section. Although the materiality assessment determined that there are no material human rights impacts, risks, or opportunities for H+H, we continuously assess the risk of human rights violations. We believe the inherent risk for human rights viola- tions is low due to the nature of the business and as we only conduct business in European coun- tries with strong institutions. Most of the people working in our plants are directly employed by H+H, and consequently, we can ensure that our staff are treated fairly and in accordance with the above principles. Temporary staff (non-em- ployees) are either employed directly by us or via reputable agencies which adhere to relevant employment legislation. To mitigate risks for viola- tion of human rights throughout the value chain, we have a Code of Conduct for Suppliers which outlines our expectations for our suppliers and contains provisions to address human trafficking, forced and compulsory labour, the health & safety of workers and precarious work. A description of our Code of Conduct and Code of Conduct for Suppliers can be found in the Govern- ance section. Engagement with own workforce on this and other employment related issues is described in the next section under S1-2. S1-4 Actions in 2024 Guided by the Diversity Policy, all managers are expected to treat employees equally and not discriminate in matters such as recruitment, promotions, development opportunities or any other personnel decisions. When recruiting we source candidates of different genders when- ever possible, and we seek to create a dynamic organisation with a diverse mix of cultures, backgrounds, skills, and ways of thinking. When employing external recruitment consultants, they are required to submit their diversity policies and where possible we ensure that all recruitment short lists have an appropriate gender balance. If two candidates of different genders are equally qualified for the position, the candidate of the under-represented gender, if any, will be chosen. This principle is applied across the Group. No additional actions have been planned for 2025. Due to the small size of the management levels, turnover in these roles is also naturally low, making it difficult to track effectiveness of actions. S1-5 Targets Group Management have decided to not set any targets related to managing material negative impacts, as we currently narrow our focus on safety. There are currently no formal processes in place to track the effectiveness of our policies and actions, but the need for setting targets and implementing processes is regularly assessed. Board diversity targets Our Group Diversity Policy is applied when evalu- ating the composition of H+H International A/S' management. Pursuant to section 139c of the Danish Compa- nies Act, we aim to have equal gender distribution in our Board of Directors, as defined by the Danish H+H International | Annual Report 2024 | 79In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Germany Poland United Kingdom Other Business Authority. This was reached at the Annual General Meeting on 31 March 2022, and the target is still met with the current composition of 2 female members and 5 male. A new formal gender target under the law will be set if the gender composition changes, so that the gender distribution no longer is considered equal as per the legal definition. The Board seeks to be diverse in the broadest sense relevant. When deciding whether to propose re-election or not of board members as well as when searching for candidates to propose as new board members, the decision is based on filling out any competence gaps or strengthening specific competences in the Board based on the collective competences that the Board finds rele- vant at the time considering H+H's strategy, chal- lenges and opportunities. In addition to looking at competences in the form of professional experience and education, the Board also recog- nises the benefits of diversity in terms of cultural background, gender, age etc. Currently, the Board of Directors’ diversity in respect of gender and age could improve, hence if two candidates for a board position are equally competent, the candidate who is female and/or younger than the average age of the board members will be preferred. You can read more about board diversity in the ' Board Diversity' section under 'Corporate Govern- ance'. For gender diversity in the two management levels in the parent company below the Board, we have due to H+H International A/S’ relatively small organisation, opted to use the legal exemption for companies with less than 50 employees and not have a gender diversity policy or related gender diversity targets to increase the proportion of the underrepresented gender, cf. the Danish Compa- nies Act, Section 139(c)(7). The parent company has less than 25 employees and a high degree of retention, and thus only very few recruitments over time, making it impossible to pursue gender targets within a meaningful timeframe. S1-6 Characteristics of H+H employees & S1-7 Characteristics of non-employees The gender ratio of our workforce remains stable with an even split among workers in office envi- ronments and low diversity among workers in our plants and other non-office environments. Due to the continued need for organisational streamlining following the downturn in the construction industry our turnover rate remains high, however not as high as 2023. We are however pleased to see that our voluntary turn- over ratio remains stable at 12% compared to 13% last year, reflecting the regional efforts to ensure good work-life balance and working conditions. Headcount by country Germany 413 Poland 608 United Kingdom 228 Other 88 Total 1.337 Turnover Unit 2024 2023¹ Employee turnover ratio % 22% 40% Employee turnover Headcount 280 605 1 Not covered by the Independent Auditor’s limited assurance report Headcount by gender Office workers Non-office workers Total Male 198 917 1,115 Female 171 51 222 Other 0 0 0 Not reported 0 0 0 Total 369 968 1,337 413 608 228 88 H+H International | Annual Report 2024 | 80In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Age distribution in the Group The age distribution of our workforce is in line with other industries and society in general and is therefore in line with our expectations. Age distribution 2024 2023¹ Below 30 9% 7% Between 30 and 50 51% 48% Above 50 40% 45% 1 Not covered by the Independent Auditor’s limited assurance report Female Male Other Not disclosed Total Number of employees 222 1,115 0 0 1,337 Number of permanent employees 212 979 0 0 1,191 Number of temporary employees 10 136 0 0 146 Number of non-guaranteed hours employees 0 2 0 0 2 Number of non-employees 2 15 0 0 17 CWE region HQ Poland United Kingdom Total Number of employees 483 18 608 228 1,337 Number of permanent employees 473 18 473 227 1,191 Number of temporary employees 10 0 135 1 146 Number of non-guaranteed hours employees 2 0 0 0 2 Number of non-employees 16 1 0 0 17 S1-9 Diversity metrics The underrepresented gender in top management 2024 2023¹ Gender diversity, top management (entire H+H Group) 0% 0% Females / total HC 0/6 0/7 S1-16 Remuneration metrics During 2024 the gender pay gap, defined as the difference of average pay levels between male and female employees, decreased from -6% to -17%. In general, we believe that it is difficult to assess the development in the gender pay gap due to the mix of job functions and job levels. However a big contributor, is the composition of our workforce, where majority are non-office workers who are traditionally male and where salaries are lower. Additionally, as we operate in countries with mate- rially different salary levels, comparison across regions can be difficult. However, we are working on getting better trans- parency of the differences in salary levels. The first step is the implemention of a Group job architecture as preparation for the implementa- tion of the EU directive on Pay Transparency. This is planned for 2025. The CEO pay ratio, defined as the ratio of the highest-paid individual to the median annual total remuneration for all employees has increased from 2023 to 2024. We attribute this to the vari- able components of the CEO pay, as described in the Remuneration Report. 2024 2023¹ Gender pay gap (average) -17% -6% CEO pay ratio 34 29 H+H International | Annual Report 2024 | 81In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Training & skills development and working conditions ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model H+H seeks to provide a safe and attractive work environment for our employees during all stages of their career. We want to attract and retain qual- ified and motivated employees who can support our business ambitions. To enable this, we offer our people training and development to enhance their skills and develop their careers while also providing opportunities to shape their work when- ever possible. Please refer to the section 'HOME' under 'Stra- tegic Focus Areas' for the link to our business strategy. The following material impacts related to training and skills development and working conditions were identified in the materiality assessment: Training and skills development Lack of proper training and skills development can impact the employee’s ability to work and enhance the risk for compliance violations and business developments. By providing attractive training and development opportunities that help our employees realise their potential and ambi- tions, we have a positive impact on our workforce. This impact is systemic and occurs in our own operations over the short, medium, and long-term periods for both employees and non-employees, including self-employed people and people provided by third-parties. Work-life balance, working conditions and social dialogue As employers we naturally have an impact on work-life balance and working conditions for all employees as well as non-employees. This includes the possibility to take leave or work flexibly and providing space and opportunity for social dialogue with employees. The impacts occur over both the short, medium and long term and are systemic as they covers all sites in all regions. No material risks or opportunities were identified. Impacts, risks, and opportunities management Managing our impacts is key to ensuring that we have the workforce we need to achieve our business ambitions. Performance, competence, and talent management is handled locally where managers are encouraged to keep an open dialogue with employees and to continually assess the need for training. S1-1 Policies H+H does not have a policy that specifically addresses training and skills development. In addition to required upskilling or renewal of certif- icates, we believe that performance, talent, and competence management should be managed in regular dialogues between managers and employees. For this reason there is currently no plan to introduce a Group policy. Our group principles relating to working condi- tions are described in our Human Rights Policy. On a practical level these are mainly governed by regional policies and employee handbooks, including rules on leave and flexible working. The duration of leave differs from region to region and is in line with local legislation. The opportunity to work flexibly also varies from region to region and depends on the nature of the job. Employees are encouraged to provide feedback and voice concerns to ensure proper work-life balance and whenever possible work processes are designed and improved in collaboration with the relevant internal stakeholders. S1-2 Processess for engagement In order to create an attractive working environ- ment, we regularly engage in dialogue with our employees to understand their perspectives and needs. This includes employee surveys for selected employees, manager 1:1s, as well as local Q&A sessions with management. The Group HR Director has overall operational responsibility for ensuring that engagement on actual and potential impacts happens and that actions are initiated. All employees can raise their concerns directly to a manager or through our whistleblower system. The whistleblower system is described in the Governance section. S1-3 Processes for remediation We aim to have a culture where all employees feel comfortable about speaking up if they have concerns or issues. There is currently no formal- ised process in place where we evaluate this. Majority of our whistleblower reports are made either to HR or directly to a manager and we view this as a sign that employees trust the structures and processes we have in place. Information on the protection of whistleblowers and the Whistleblower Policy can be found in the Governance Section. S1-4 Actions A performance management framework has been launched for a pilot group of employees, with the intention to roll out the program further during the coming years in all regions. Through performance management we want to support achievement of the organisation’s goals while also fostering indi- vidual development and performance. As launch of the framework is still in early stages, tracking of effectiveness is also still in the planning phase. No other specific actions have been taken in 2024 in relation to managing impacts related to working conditions and training & skills development. H+H International | Annual Report 2024 | 82In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Feedback and perspectives of our own workforce are taken into account when planning actions. S1-5 Targets To currently focus our resources on other priori- ties, Group Management have decided to not set any targets related to managing material negative impacts. There are no processes at the moment in place to track the effectiveness of our policies and actions, but the need for targets and processes is regularly assessed. S1-8 Social dialogue It varies from country to country and depending on local legislation, whether or not employees are represented by a local organisation such as a workers’ council or work environment organisa- tion. As we have not been met by a demand from our employees, there is currently no agreement between H+H and a European Works Council (EWC), a Societas Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE) Works Council. Majority of employees' working terms and employment conditions are decided directly between the employee and the company and generally not by collective bargaining agreements. S1-13 Training and skills development metrics We report on the average number of training hours within H&S and compliance training as this is where we have group wide standardised processes. For personal training and skills devel- opment, this is managed locally within each region. S1-15 Work-life balance metrics All employees are entitled to take family-related leave, and in total 3% took leave. No person who requested to take leave was denied the opportu- nity. S1-17 Incidents, complaints and severe human rights impacts During 2024 there were no work-related inci- dents of discrimination reported to HR or via the whistleblower system on the grounds of gender, racial or ethnic origin, nationality, religion or belief, disability, age, sexual orientation, or other relevant forms of discrimination involving internal and/or external stakeholders across operations in the reporting period. This includes incidents of harassment as a specific form of discrimination. No cases of human rights incidents (e.g., forced labour, human trafficking, or child labour) were identified during 2024. Social dialogue Coverage Rate Workplace representation (EEA only) (for countries with >50 empl. representing >10% total empl) 0-19% Poland 20-39% 40-59% 60-79% Germany 80-100% Total Male Female Employees who participated in regular performance and career development reviews 51% 52% 50% Average number of training hours 7 6 11 Total Male Female Employees entitled to take family-related leave 100% 100% 100% Employees that took family-related leave 3% 2% 7% H+H International | Annual Report 2024 | 83In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Controls Data regarding number of employees and gender are generated from our HR and Payroll systems. Data regarding fatalities and accidents are reported through the operations management system that follows normal financial processes to ensure consistency and is validated against the external financial reporting. The data is verified through internal controls, analysis, benchmarks, and monthly business meetings. Unless stated no numbers or metrics have been validated by any external body other than the assurance provider. Definitions • Own workforce is defined as employees as well as non-employees, excluding contractors. Unless otherwise described, both employees and non-employees are subject to the material impacts related to Own Workforce • Headcount is defined as all employees, both fulltime and part-time, as well as active and non-active. The numbers reported for both employees and non-employees are as of 31 December 2024 • FTEs (fulltime equivalents) are defined as all employees and non-employees, excluding those on leave • Employees are defined as those being directly on our payroll. Non-employees include both self-employed people and people provided by third parties • Group Management includes the Executive Board and senior executives at H+H International A/S. • Gender diversity, top management is defined as Group Management and the regional Managing Directors • Gender pay gap is calculated as difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees. Basis for average pay is the hourly wage of all female and male employees, converted to DKK using the average exchange rates for the year • CEO pay ratio is calculated as the CEO compen- sation, as reported in the Remuneration Report, divided by the median salary of all other employees • Employee turnover ratio is calculated as total leavers divided by average headcount for the year. Only people on our payroll are included • The number of employees who took leave is calculated as the total number for leaves commenced between 1 January 2024 and 31 December 2024. Employees are only counted once, even if they have had multiple leave periods during the year • Employee representation in relation to Social Dialogue is defined as representation by works council, work environment organisation or employee committees • Training is defined as H&S related training and compliance training. When calculating the average number of hours per gender, we have used the gender split for each country on the completion rates of the compliance training offered • A fatality is a work-related injury that results in death. The number reported includes both employees, non-employees, contractors, and visitors • Lost-Time Incident Frequency (LTIF) meas- ures the frequency of Lost-Time Incidents and fatality incidents per million hours divided by total hours worked. Working hours is based on actual time registrations as well as estimates. The number reported includes own workforce • Total Recordable Incident Rate (TRIR) meas- ures the frequency of all work-related injuries and fatality incidents per million hours divided by total hours worked • Near Miss Frequency Rate for employees (NMFR) measures number of Near Miss Reports per million hours divided by total hours worked following the OSHA guidelines • Sickness absence is calculated as total sick days divided by average number of FTEs during the year • Short-term absence is defined as sick leave where H+H provides the primary compensation to the employee. Once the primary compensa- tion transitions to be provided by a public body, the absence is considered long-term Social accounting policy H+H International | Annual Report 2024 | 84In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Governance information List of material disclosure requirements Page reference G1 - Business Conduct GOV-1 The role of the administrative, management and supervisory bodies Pages 36-42, 85 G1-1 Business conduct policies and corporate culture Page 86 G1-3 Prevention and detection of corruption and bribery Pages 86-87 G1-4 Incidents of corruption or bribery Page 87 H+H is committed to acting professionally, responsibly, and with integrity in all our business dealings and relationships. GOV-1 The role of the administrative, management and supervisory bodies The Board of Directors is responsible for the overall strategic direction and management of the Group, and that an adequate control framework exists to ensure proper business conduct. The Executive Board is responsible for the day-to-day management including implementation of a policy framework and related controls to support a responsible corporate culture. In our Board of Directors and Executive Board we have members with management experience within compliance and governance work, auditing and controlling. Presentations of the individual members of the Board of Directors and Executive Board can be found in the Corporate Governance section. Impacts, risks and opportunities As part of the construction industry we face risks associated with bribery, corruption and anti-com- petitive practices, due to the large number of contractors, suppliers and other entities in the value chain and the competitive bidding process to secure private - and to a lesser extent - public contracts. H+H mainly sells through builders’ merchants (wholesalers) and as a building materials producer rather than a construction company, we have limited direct involvement in negotiations and bid proposals. In addition, we only operate in Europe within countries that have low risks of bribery and corruption, ranking between 1 (Denmark) and 53 (Poland) out of 180 countries in the Transparency International Corruption Perceptions Index 2024. We therefore consider the overall risk of corrupt behaviour to be relatively low. In the materiality assessment we identified the following impacts related to business conduct: Corporate culture We actively want to foster a culture of integrity and transparency. Setting the tone at the top is important and by leading by example we impact the way our employees experience and contribute to our corporate culture. This impact occurs in our own operations over the short, medium and long term. Unethical business practices The main risk of corrupt behaviour for H+H concerns inappropriate types or levels of enter- tainment, gifts or payments (kick-backs) provided to our employees from potential or actual suppliers or provided by our employees to poten- tial or actual customers with the intent of gaining special consideration or a business advantage. The impact occurs in our own operations over the short, medium and long term. Whistleblower protection It is important for us to foster an open culture where employees, business partners and other stakeholders can raise important matters. In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International | Annual Report 2024 | 85 Protecting whistleblowers is integral to ensure fair investigations and avoid retaliation. The impact occurs in our own operations over the short, medium and long term. Impacts, risks and opportunities management We manage these impacts by continually working to strengthen our compliance culture. This is done through our policies, whistleblower system, training and awareness, by conducting audits, and through leadership communication and behaviour that sets the tone from the top on conducting business with integrity. G1-1 Business conduct policies and corporate culture Code of Conduct and Code of Conduct for Suppliers H+H’s Code of Conduct is the foundation of our compliance programme and sets the tone for our business integrity and ethical principles. It is complemented by the Code of Conduct for Suppliers which outlines our expectations to suppliers to conduct business in a legal, sustain- able, ethical and socially responsible manner. The Code of Conduct and Code of Conduct for Suppliers include our principles related to e.g. environment and climate, health and safety, diver- sity, non-discrimination, personal data protection, conflicts of interest, fair competition, anti-corrup- tion, responsible tax and data ethics. The Code of Conduct for Suppliers is provided to all major suppliers in each region with a request to confirm compliance The Board of Directors approves the Code of Conduct and the Executive Board is responsible for the implementation of the policy principles. The COO is responsible for the Code of Conduct for Suppliers and its implementation. Employees can access these policies in H+H’s policy manage- ment system. Employees without direct access are provided with either paper copies or access via shared computers or notice boards. Every employee at H+H is required to read and adhere to the H+H Code of Conduct. Both of these policies are reviewed regularly and updated in line with relevant legislation, and they are available at all H+H websites. The Board of Directors is ultimately responsible for oversight of H+H’s corporate culture and business conduct. The Executive Board and other managers in the Group are responsible for imple- mentation of the policy principles and leading by example to drive a culture of business integrity and discuss openly how to follow the principles in the Code of Conduct and the underlying specific policies. To support our commitment to respon- sible business conduct, the regional Managing Directors are required to sign a declaration every quarter stating that to the best of their knowledge, all H+H entities in their region are conducting business in a way that is compliant with all appli- cable H+H policies. Whistleblower policy & system We encourage all reporting of any suspected wrongdoing. This can be done to a relevant H+H manager, to HR or via our public online whistle- blower system where reports can be done by name or anonymously. The system is accessible in all our languages and can be accessed both from H+H’s intranet for employees and from all H+H websites. The system is provided by an independent third-party provider of whistle- blower solutions and reporters have the option of choosing if they want to report to regional HR, Group HR or Group Legal. All good faith reports of suspected material violations of the Code of Conduct or any under- lying H+H policies and violations of law within the defined scopes are investigated. We take great care to ensure the confidentiality of the reporter’s identity and to avoid any potential conflicts of interest when establishing the investigation team and the decision maker. Independent, external legal counsel or other relevant experts are also used for investigations when relevant. Good faith whistleblowers of matters within scope are protected from any kind of retaliation or discrimi- natory or disciplinary action as a result of submit- ting a report. We assess the risk of retaliation as part of the investigation procedure and encourage reporters to report any retaliation, they may expe- rience. Outcome of investigations are reported to the Audit Committee. H+H’s Whistleblower Policy is available in the whistleblower system and provides information on how to report suspected misconduct, how reports are handled and what is deemed inside and outside scope. The Board of Directors approves the Whistleblower Policy while the Executive Board is responsible for the implementation. To create awareness and educate employees on what can be reported and how, all employees are asked to read and confirm reading of the policy. Training in the whistleblower policy and system was provided to part of the employees during 2024. Tax Policy H+H has adopted a group Tax Policy. The policy is the foundation for the common tax approach for the H+H Group. Our ambition is to always apply best practices and act in accordance with applicable legislation on tax computation and tax reporting to ensure that we pay the right amount of tax at the right time in the countries where we operate. In close collaboration with tax advisors, we monitor updates and changes to tax legislation to assess the impact on a Group and country level. G1-3 Prevention and detection of corruption and bribery H+H has zero tolerance for corruption and bribery, and we condemn corrupt behaviour and business practices. This is underpinned by our H+H International | Annual Report 2024 | 86In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements ESG & sustainability-related policies and systems Policy Area(s) of application Description Code of Conduct Overarching Our Code of Conduct describes the core values and principles, employees are expected to follow. Read more on page 86 Code of Conduct for suppliers Overarching The policy outlines our expectations to suppliers to conduct busi- ness in an ethical, legal, and socially responsible manner. Read more on page 86 ESG Policy Overarching The policy outlines our environmental, social, and governmental commitments. Read more on page 65 Human Rights Policy Social The policy outlines our commitments to respect human rights. Read more on page 79 Diversity Policy Social The core objective of the Group Diversity Policy is to foster an inclusive and open working climate where diversity is embraced and promoted. We encourage and support diversity at all levels and express our lack of tolerance towards any form of discrimination. Read more on page 78 Health & Safety Policy Social The policy describes our overarching principles for health and safety in H+H. Read more on page 77 Anti-corruption Policy Governance The policy provides principles and information related to bribery, facilitation payments, donations, and entertainment and gifts. Read more on pages 86-87 Data Ethics Policy Governance The purpose of this policy is to set out the data ethical principles for H+H’s processing of data so that the processing is not only legal, but also ethical. Read more on page 39 Tax Policy Governance The policy describes our internal governance and management of all matters related to tax. Read more on page 86 Whistleblower Policy Governance The policy includes information on how to report suspected misconduct, how reports are handled and what is deemed inside and outside scope. Read more on page 86 Anti-corruption Policy which provides principles and information related to bribery, facilitation payments, donations, and entertainment and gifts, as well as the potential consequences for violations. The Executive Board is responsible for implementation of the Anti-corruption Policy which is reviewed regularly and updated in line with relevant legislation. The policy is available in all our company languages and is communicated to all office employees via our policy management system with a request to confirm that they have read the policy. The policy includes relevant sector specific practical examples to train and raise awareness of business situations that may involve bribery or corruption and the behaviour expected of H+H employees in such situations. Currently there is no Group definition of which functions are deemed to be at risk. No training in anti-corruption and bribery was provided to any H+H employees in 2024, including Group Management. Internal controls are set up to manage any poten- tial corruption risks present on the sales and procurement side. Escalation procedures are in place and communicated within the Group. Investigations follow the process described in the Whistleblower section. Metrics and targets We believe that having a diverse Board of Direc- tors is linked to better governance of our busi- ness. Target setting related to this is described in the Corporate Governance section and the Social section. Group Management believes that for now this target is sufficient and has decided not to set any other targets in relation to Governance. G1-4 Incidents of corruption and bribery During 2024, three whistleblower reports were found to be within scope, however none regarded corruption and bribery. H+H did not receive any injunction, ruling, conviction, fine or similar for violation of anti-corruption or anti-bribery laws. H+H International | Annual Report 2024 | 87In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements 89 Consolidated financial statements 93 Notes 131 Statements 139 Contact information Financial statements H+H International | Annual Report 2024 | 88In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Income statement Statement of comprehensive income Note (DKK million) 2024 2023 3,11 Revenue 2,747 2,672 4,11,17 Cost of goods sold (2,168) (2,108) Gross profit before special items 579 564 4,11 Sales costs (122) (149) 4,11 Administrative costs (209) (197) 5 Other operating income and costs, net 2 26 EBITDA before special items 250 244 6,11 Depreciation and amortisation (187) (187) EBIT before special items 63 57 7 Special items, net (22) (287) EBIT 41 (230) 8 Financial income 39 24 9 Financial expenses (109) (77) Result before tax (29) (283) 10 Tax (21) 37 Result for the year (50) (246) Result for the year attributable to: H+H International A/S' shareholders (53) (248) Non-controlling interest 3 2 Result for the year (50) (246) 12 Earnings per share (EPS-Basic) (DKK) (3,2) (15,0) 12 Diluted earnings per share (EPS-D) (DKK) (3,2) (15,0) Note (DKK million) 2024 2023 Result for the year (50) (246) Other comprehensive income: Items that will not be reclassified subsequently to the income statement: 20 Actuarial losses and gains 13 (68) Tax on actuarial losses and gains (5) 15 8 (53) Items that may be reclassified subsequently to the income statement: 26 Fair value adjustments of derivative financial instruments (13) (20) Tax of fair value adjustment 1 3 26 Gain/(loss) on derivative financial instruments transferred to the income statement 9 10 Foreign exchange adjustments, foreign entities 20 63 17 56 Other comprehensive income after tax 25 3 Total comprehensive income for the year (25) (243) H+H International | Annual Report 2024 | 89In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Balance sheet at 31 December Note (DKK million) 2024 2023 Goodwill 422 422 Customer relations 143 179 Other intangible assets 77 61 13 Intangible assets 642 662 Land and buildings 707 754 Plant and machinery 689 610 Other equipment, fixtures and fittings 80 77 Assets under construction 240 332 14 Property, plant and equipment 1,716 1,773 15 Deferred tax assets 54 31 Investments in associated companies 2 2 Other non-current assets 56 33 Total non-current assets 2,414 2,468 17 Inventories 435 657 18 Trade receivables 113 102 18 Other receivables 39 74 Prepayments 10 14 Cash 462 139 Current assets 1,059 986 Total assets 3,473 3,454 Note (DKK million) 2024 2023 19 Share capital 165 165 Other reserves (82) (99) Retained earnings 1,483 1,526 Equity attributable to H+H International A/S's shareholders 1,566 1,592 Equity attributable to non-controlling interests 84 86 Equity 1,650 1,678 20 Pension obligations 21 59 21 Provisions 43 31 15 Deferred tax liabilities 36 54 26 Lease liabilities 73 95 25 Deferred payments, acquisition of subsidiary 93 99 22 Credit institutions 1,046 907 Non-current liabilities 1,312 1,245 22 Credit institutions - - Trade payables 272 278 26 Lease liabilities 25 24 Income tax 1 5 25 Deferred payment, acquisition of subsidiary 6 7 21 Provisions 26 7 Other payables 181 210 Current liabilities 511 531 Total liabilities 1,823 1,776 Total equity and liabilities 3,473 3,454 Assets Equity and liabilities H+H International | Annual Report 2024 | 90In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Cash flow statement Note (DKK million) 2024 2023 Operating profit (EBIT) 41 (230) 6 Depreciation, amortisation and impairment 187 288 Change in inventories 225 (117) Change in receivables 32 (12) Change in trade payables and other payables (50) 23 Other non-cash adjustments (156) (62) Operating activitites before financial items and tax 279 (110) 8, 9 Financial items, net (70) (53) Income tax paid (64) (46) Operating activities 145 (209) Sale of property, plant and equipment 205 35 25 Acquisition of enterprises and related deferred payments (7) (7) 13, 14 Acquisition of property, plant and equipment and intangible assets (124) (165) Investing activities 74 (137) Free cash flow 219 (346) 22 Proceeds in borrowings - 245 Bank overdraft and other debt 140 (80) Payment of lease liabilities (32) (32) Dividend to non-controlling interest (5) - Purchase of treasury shares - (2) Financing activities 103 131 Cash flow for the year 322 (215) Cash at 1 January 139 358 Foreign exchange adjustments of cash 1 (4) Cash at 31 December 462 139 * Other non-cash adjustments relates mainly to the gain on sale of Warsaw site. Accounting policies The cash flow statement shows the cash flows for the year, broken down by operating, investing and financing activities, and the year’s change in cash and cash equivalents as well as the cash and cash equivalents at the beginning and end of the year. The cash flow effect of acquisitions and disposals of entities is shown separately under cash flows from investing activities. Cash flows from acquisitions of entities are recognised in the cash flow statement from the date of payment, and cash flows from disposals of entities are recog- nised up to the date of disposal. Cash flows in currencies other than the functional currency are translated at average exchange rates. Cash flows from operating activities are determined as operating profit adjusted for depreciation, amortisation and impairment losses, non-cash operating items, change in working capital, pension contributions, interest received and paid, and income tax paid. Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities, acquisitions and disposals of intangible assets, property, plant and equipment, and other non-current assets. Cash flows from financing activities comprise changes in the size or composition of the share capital and associated expenses as well as the raising of loans, repayment of interest-bearing debt, purchase and sale of treasury shares, and payment of dividends as well as dividend received from subsidiaries. Payment of lease liabilities is included under financing activities and the related interest is included as a financial item under operating activities. Cash and cash equivalents comprise cash and securities with a maturity of less than three months at the time of acquisition that are readily convertible to cash and are subject to an insignificant risk of changes in value. The global cash pool arrangement is presented gross. Positive cash balances are recognised as cash in assets and overdrafts are shown within borrowings in liabilities in the balance sheet. H+H International | Annual Report 2024 | 91In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Statement of changes in equity (DKK million) Share capital Hedging reserve Translation reserve Retained earnings H+H shareholders share Non- controlling interest' share Total Equity at 1 January 2024 165 (7) (92) 1,526 1,592 86 1,678 Result for the year - - - (53) (53) 3 (50) Other comprehensive income: Foreign exchange adjustments, foreign entities - - 20 - 20 - 20 Actuarial gains/losses on pension plans - - - 13 13 - 13 Adjustments of derivative financial instruments - (4) - - (4) - (4) Tax on other comprehensive income - 1 - (5) (4) - (4) Net gains recognised directly in equity - (3) 20 8 25 - 25 Total comprehensive income - (3) 20 (45) (28) 3 (25) Share-based payment - - 2 2 - 2 Dividend to non-controlling interests - - - - - (5) (5) Total changes in equity - (3) 20 (43) (26) (2) (28) Equity at 31 December 2024 165 (10) (72) 1,483 1,566 84 1,650 Equity at 1 January 2023 175 (155) 1,822 1,842 96 1,938 Result for the year - - - (248) (248) 2 (246) Other comprehensive income: - Foreign exchange adjustments, foreign entities - - 63 - 63 - 63 Actuarial gains/losses on pension plans - - - (68) (68) - (68) Fair value adjustment of derivative financial instruments - (10) - - (10) - (10) Tax on other comprehensive income - 3 - 15 18 - 18 Net gains recognised directly in equity - (7) 63 (53) 3 - 3 Total comprehensive income - (7) 63 (301) (245) 2 (243) Acquisition of treasury shares - - (2) (2) - (2) Share-based payment - - (3) (3) - (3) Share capital decrease, note 19 (10) - 10 - - - Dividend to non-controlling interests - - - - (12) (12) Total changes in equity (10) (7) 63 (296) (250) (10) (260) Equity at 31 December 2023 165 (7) (92) 1,526 1,592 86 1,678 H+H International | Annual Report 2024 | 92In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements Notes - Financial statements 1 Material accounting policy information 94 2 Significant estimates and judgements 95 Notes - Income statement 3 Revenue and segment information 95 4 Staff costs 96 5 Other operating income and costs before special items 98 6 Depreciation, amortization and write down before special item 98 7 Special items, net 98 8 Financial income 99 9 Financial expenses 99 10 Tax 100 11 Income statement classified by function 101 12 Earnings per share (EPS) 102 Notes - Balance sheet 13 Intangible assets 102 14 Property, plant and equipment 105 15 Deferred tax 107 16 Non-controlling interest 108 17 Cost of goods sold and inventories 108 18 Trade and other receivables 109 19 Share capital and treasury shares 110 20 Pension obligations 111 21 Provisions 114 22 Credit institutions 115 Notes - Supplementary information 23 Contingent liabilities 115 24 Auditors’ remuneration 116 25 Business Combinations 116 26 Financial instruments and financial risks 116 27 Related parties 120 28 Events after the balance sheet date 120 H+H International | Annual Report 2024 | 93In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 1 Material accounting policy information The annual report for the period 1 January - 31 December 2024 comprises both the consolidated financial statements of H+H In- ternational A/S and its subsidiaries (the H+H Group) and separate financial statements for the parent company. H+H International A/S is a public limited company registered in Denmark. The annual report of H+H International A/S for 2024 has been prepared in accordance with IFRS accounting standards as adopted by the EU and additional requirements of the Danish Financial Statements Act. The Board of Directors and Executive Board discussed and approved the annual report of H+H International A/S for 2024 on 4 March 2025. The annual report for 2024 will be submitted to the shareholders of H+H International A/S for adoption at the annual general meeting on 8 April 2025. Basis of preparation The annual report is presented in DKK, which is the parent compa- ny’s functional currency, rounded to the nearest DKK 1 million. The annual report has been prepared using the historical cost principle. The accounting policies are unchanged compared to last year. Accounting policies have been applied consistently throughout the financial year and for the comparative figures, if not mentioned otherwise. The accounting policies applied to the consolidated financial statements as a whole are described below and along with the notes to which they relate. The descriptions of accounting policies in the notes form part of the overall description of accounting policies. Adoption of new, revised and amended IFRSs effective 1 January 2024 H+H International A/S has adopted all relevant new or revised and amended IFRS accounting standards and interpretations (IFRIC) issued by IASB and endorsed by the EU effective for the financial year 2024. It is assessed that they have not had a material impact on the consolidated financial statement. New, revised and amended IFRS Standards It is assessed that new, revised or amended IFRSs and Interpreta- tions will not have a material impact on the consolidated financial statements. New, revised and amended IFRSs and interpretations not yet adopted by EU It is assessed that new, revised or amended IFRSs and interpre- tations that have been issued but not yet adopted by EU as at 31 December 2024 will not have a material impact on the consolidated financial statements. Application of materiality In the preparation of the annual report, H+H Group aims to focus on information which is considered to be material and relevant to the users of the annual report. The consolidated financial statements are a result of aggregating large numbers of transactions into classes of similar items, according to their nature or function, in the consolidated financial statements. If a line item is not individually material, it is aggregated with other items of a similar nature in the consolidated financial statements or in the notes. The provisions in IFRS contain extensive disclosure requirements. The specific disclosures required by IFRS are provided in the annual report unless the information is considered immaterial to the users of the annual report. Description of accounting policies Consolidated financial statements The consolidated financial statements include the parent company H+H International A/S and subsidiaries controlled by H+H Interna- tional A/S. Control exists when H+H International A/S holds or has the ability to exercise, directly or indirectly, more than 50% of the voting rights or otherwise has control of the subsidiary in question and has the right to variable returns from the entity. The consolidated financial statements have been prepared by aggregation of the parent company’s and the individual subsidiaries’ financial statements, applying the H+H Group’s accounting policies. Intra-group income and expenses, shareholdings, balances and dividends as well as realised and unrealised gains arising from intragroup transactions are eliminated on consolidation. Equity investments in subsidiaries are offset against the proportion- ate share of the fair value of the subsidiaries’ identifiable net assets and recognised contingent liabilities at the date of acquisition. Accounting items of subsidiaries are fully recognised in the consoli- dated financial statements. Foreign currency translation For each entity included in the consolidated financial statements, a functional currency has been determined. The functional currency of an entity is the currency of the primary economic environment in which the entity operates. Transactions in currencies other than the functional currency are accounted for as transactions in foreign currencies. On initial recognition, transactions denominated in foreign curren- cies are translated into the functional currency at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated into the functional currency at the exchange rates at the balance sheet date. The difference between the exchange rate at the balance sheet date and the exchange rate at the date on which the receivable or payable arose or the exchange rate used in the last annual report is recognised in the income statement as financial income or financial expenses. On recognition in the consolidated financial statements of foreign entities with a functional currency other than DKK, income state- ments are translated at the exchange rates at the transaction date and balance sheet items are translated at the exchange rates at the balance sheet date. An average exchange rate for each month is used as the exchange rate at the transaction date to the extent that this does not give a significantly different view. Foreign exchange differences arising on translation of the opening equity of foreign entities at the exchange rates at the balance sheet date, and on translation of income statements from the exchange rates at the transaction date to the exchange rates at the balance sheet date, are recognised as other comprehensive income. Foreign exchange adjustments of balances considered part of the overall net investment in entities with a functional currency other than DKK are recognised in the consolidated financial statements as other comprehensive income. Correspondingly, foreign exchange gains and losses on that part of loans and derivative financial in- struments entered into to hedge the net investment in such entities which effectively hedges against corresponding exchange gains/ losses on the net investment in the entity are recognised as other comprehensive income. H+H International | Annual Report 2024 | 94In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 2 Significant estimates and judgements Determining the carrying amounts of some assets and liabilities requires Management to make judgements, estimates and assumptions concerning future events. The estimates and assumptions made are based on historical experience and other factors that are believed by Management to be sound under the circumstances but due to their nature, are uncertain and unpredictable. The estimates and assumptions may be inaccurate, and unforeseen events or circumstances may occur. Moreover, the H+H Group is subject to risks and uncertainties that may lead to the actual outcomes differing from these estimates and assumptions. It may be necessary to change estimates and assumptions made previously as a result of changes in the factors on which these were based or as a result of new knowledge or subsequent events. Significant accounting estimates and judgements made in connection with the financial reporting are set out in the notes listed below. Reference is made to the specific notes for further information on the key accounting estimates and judgements as well as the assumptions applied. Significant accounting Nature of Impact of estimates Note estimate and judgementaccounting impactand judgements3 Segment information Aggregation of similar segments Judgement 13 Impairment testing of intangible assets Key assumptions in impairment test Estimate 15 Deferred tax Recovery of deferred tax assets Estimate 20 Defined benefit pension plans Key actuarial assumptions Estimate ** * Low ** Medium *** High 3 Revenue and segment information Revenue The revenue streams contain of contracts for sale of goods and related transport services. Change of control for contracts for goods are satisfied upon shipment whereby the performance obligation is met instantly. Revenue relating to transport services is recognised upon delivery of the goods to an agreed location whereby the performance obligation is met. The transaction price is the amount to which H+H expects to be entitled in exchange for the transfer of goods and transport services. The trans- action price for delivery of goods and transport services are an integrated part of the contracts and the standalone selling prices are directly observable. Accounting estimates are made for variable considerations which consist of customer rebates and bonuses. These are allocated to the transaction price based on “The most likely amount”-method. Payment terms mainly comprise of 30 days end of month, hence no significant financing component. Defect products and return pallets can be redelivered and provisions has been recognised accordingly. For further description, please refer to note 21 “Provisions”. Key customers One customer in the UK represented approx. 15% of the H+H Group’s total revenue in 2024 (2023: 17%). In 2023, one customer in Germany represented 11% of the total revenue. The following geographical areas in the Group represent more than 10% of revenue or non-current assets. (DKK million) 2024 2023Non- Non- current current Revenueassets RevenueassetsCentral Western Europe 1,030 1,676 1,256 1,729UK 871 336 763 299Poland 846 402 653 4402,747 2,414 2,672 2,468 When presenting information on geographical areas, information on revenue is based countries except for “Central Western Europe” which comprise of Germany, Switzerland, Denmark, Sweden, Czech Republic, Holland and Belgium. For Germany, revenue in 2024 for amounts to DKK 645 million (2023: DKK 822 million) and non-current assets amount to DKK 1,268 million (2023: DKK 1,305 million). All revenue relates to sales of goods and transport services. Revenue in Denmark was DKK 151 million in 2024 (2023: DKK 193 million). Non-current assets in Denmark at year-end 2024 amounted to DKK 66 million (2023: DKK 54 million). AAC and CSU revenue amounted to DKK 2,020 million and DKK 727 milllion in 2024, compared to DKK 1,880 million and DKK 792 million in 2023. AAC products are sold across all segments, while CSU products are sold in CWE and Poland. H+H International | Annual Report 2024 | 95In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 3 Segment information – continued Accounting policies Revenue from contracts for goods recognised in the income statement when the customer obtains control. Revenue relating to transport servic- es is recognised upon delivery of the goods to an agreed location. Revenue is recognised if the income can be measured reliably and is expected to be received. Revenue is measured net of VAT and duties collected on behalf of third parties. All types of discounts and rebates granted are recognised in revenue. The reporting of operating segments is in accordance with the internal reporting to the Executive Management which constitute H+H’s chief operating decision maker. H+H has identified three operating segments Central Western Europe, UK and Poland which has been aggregated into one reporting segment. The operating segments share similar economic characteristics in regard to gross profit margin, are similar in the nature of products, production processes and customer base as well as in distribution methods. Executive Management is responsible for decisions about overall resource allocation and performance assessment. Business decision on resource allocation and performance evaluation for each of the operating segments are made on basis of EBIT before special items. Significant accounting Judgement Aggregation of segments with exhibit similar economic characteristics When assessing segment information, Management has provided significant judgements, especially related to the five aggregation criterias re. IFRS 8.12, i.e. nature of the products and services, nature of the production processes, type or class of customer, method used to distribute products and nature of the regulatory environment. Based on a thorough analysis, it is concluded that aggregation of the identified three operat- ing segments Central Western Europe, UK and Poland into one reporting segment can be made as each of the operating segments share similar economic characteristics measured on a long-term gross profit margin basis, as well as they share similar fundamental characteristics re. the five aforementioned specific aggregation criteria’s. 4 Staff costs (DKK million) 2024 2023Total Remuneration to Key Management Personnel – Executive Board and non-registred members of Executive ManagementSalary 10.9 12.1Bonus 4.3 3.7Share-based payment 2.9 0.5Pension 0.3 0.3Total 18.4 16.6 * Non-registered member of executive management are the Group Chief Operating Officer and Group Straregy Officer (until end of March 2024). ** Share-based payment comprise costs related to share programs for the years 2021 -2024 recognised in accordance with IFRS 2. (DKK million) 2024 2023Wages and salaries 554 617Defined contribution plans, see note 20 6 5Share-based payment 2 (5)Remuneration to the Board of Directors 3 3Other staff costs 27 45592 665Staff costs are recognised as follows:Production costs 309 340Sales and distribution costs 88 108Administrative costs 125 111Special items 46 106Employee costs recognised in fixed assets 24 -592 665 Average full-time equivalent staff 1,245 1,500 H+H International | Annual Report 2024 | 96In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 4 Staff costs – continued (DKK million) 2024 2023Total Remuneration to Executive Board and Board of DirectorsExecutive Board 14.2 12.1Board of Directors 3.2 3.0Total 17.4 15.1 Remuneration Policy for Board of Directors and Executive Board The Remuneration Policy for H+H International A/S (H+H) was adopted at the annual general meeting on 9 April 2024 by the Board of Directors to ensure alignment with the new corporate governance recommendations. The overall objective of the Remuneration Policy is to provide a remuneration framework that supports successful execution of the H+H Group strategy. The Board of Directors has established a Remuneration Committee that assists the Board of Directors in developing, implementing and continu- ous complying with the Remuneration Policy. The Charter of the Remuneration Committee as well as a description of the key matters handled by the Remuneration Committee for the latest financial year is available at www.HplusH.com/board-committees. The Board of Directors does not receive any form of incentive payment, and remuneration to the Executive Board consists of fixed salary and other benefits as well as the variable elements short-term incentive programs (STIP) and long-term incentive programs (LTIP). Executive Board Short-term incentive programs (STIP) In addition to the fixed salary, remuneration for the Executive Board consists of an annual cash bonus based on performance related to the extent of achievement of pre-defined key performance indicators (KPIs). The bonus is therefore not guaranteed. In the case of termination of employment, the member is entitled to a pro rata bonus up to the date of termination, if the performance achieved by year-end means that a cash bonus has been earned. Long-term incentive programs (LTIP) In March 2024, the Board of Directors of H+H International A/S implemented a new long-term incentive program (“LTIP”) being a performance share unit (“PSU”) program similar to the LTIP PSU program launched in prior years including financial, ESG and market related KPIs. At initia- tion, a total of 158,000 PSUs were granted to the participants, including 47,850 PSUs to CEO, Jörg Brinkmann and 17,600 PSUs to CFO, Bjarne Pedersen. Based on the average share price for H+H shares trading on the Nasdaq Copenhagen stock exchange during the first ten days after the release of the 2024, Annual Report on 4 March 2024, the theoretical value was DKK 68.0 per PSU, corresponding to a total theoretical value of DKK 10.8 million for the 2024 LTIP based on the participants upon initiation of the program and their receipt of PSU grants. The vesting period for the PSUs is approximately three years, with vesting for the 2024 LTIP being in 2027 when the audited annual report for 2026 is publicly announced. In 2023 and 2022, PSU programs, similar to above, was launched for the Executive Board and certain key employees in the H+H Group. None of the KPIs included in 2020 PSU programme were met, and as a result no shares vested in March 2024. Overview of outstanding PSUsMax. PSUs 2024 2023Outstanding 1 January 175,989 207,306Granted 158,000 96,050Forfeited (7,900) (57,985)Vested (50,200) (69,382)Oustanding 31 December 275,889 175,989 * Granted and vested based on maximum PSUs earned. Actual shares granted / vested are based on achieving certain financial market and sustainable KPIs. Pending share programs The fair value of the programs is determined as the number of shares/PSU’s which are expected to vest. The share price used in calculating the value of the programs is the average share price on the first 10 days of the trading window when the program is launched. At vesting, grants can be settled with shares or by cash, based on the company’s decision. Cost for share programs is recognised as staff costs until the expiry of the vesting periods. Cost is reversed for participants that voluntarily leave the H+H Group (i.e. “bad leavers”). As of 31 December 2024, the Company had the following pending share programs with associated fair values: Max. Shares/Expected PSUs to be shares/PSUs Max. value Exp. value grantedto be granted (DKK million)(DKK million)2022-programme, vesting in March 2025 43,589 - 3.4 -2023-programme, vesting in March 2026 77,200 53,268 6.1 4.22024-programme, vesting in March 2027 155,100 124,080 12.2 9.8 * Share price of DKK 88.80 has been applied Accounting policies The H+H Group’s incentive schemes comprise share programs for senior executives and certain key employees. The value of services rendered by employees in return for share grants is measured at the fair value of the shares as of the they of recognition. For equity settled shares, the grant date fair value is measured and recognised in the income statement as staff costs over the vesting period of the shares. The costs are set off directly against equity. On initial recognition of shares, the number of shares expected to vest is estimated, cf. the service condition described. The figure initially recog- nised is subsequently adjusted for changes in the estimate of the number of shares expected to vest, so that the total recognition is based on the actual number of vested shares. H+H International | Annual Report 2024 | 97In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 5 Other operating income and costs before special items (DKK million) 2024 2023Other operating income:Gain on disposal of property, plant and equipment 2 26Rental income 8 5Other income 4 514 36Other operating costs:Loss on disposal of property, plant and equipment - (3)Other costs (12) (7)(12) (10)Total 2 26 Accounting policies Other operating income and costs comprise items secondary to the entities’ activities such as gain and losses and reversal of provisions on disposal of property, plant and equipment, rental income etc. 6 Depreciation and amortisation before special items (DKK million) 2024 2023Intangible assets 47 45Land and buildings 36 59Plant and machinery 74 37Fixtures and fittings, tools and equipment 30 46Total 187 187 No impairment was recognised in 2024. During 2023, 9 factories were closed either temporarily or permanent. In that connection impairment of DKK 101 million were identified related to equipment and machinery and was recognised as special items. We refer to note 7. No other impairment was recognised in 2023. 7 Special items, net (DKK million) 2024 2023Gain from sale of Warsaw site 156 -Restructuring costs (68) (133)Impairment of assets, closed down factories - (101)Inefficient part of gas hedges (110) (53)Total (22) (287)Impact of specital items on EBITCost of goods sold (131) (131)Sales costs (19) (3)Administrative costs (28) (52)Other operating income and costs, net 156 -Depreciation, amortisation and impairments - (101)Total (22) (287) H+H International | Annual Report 2024 | 98In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 7 Special items, net – continued In Q1 2024 H+H decided to settle the remaining gas contracts entered in the summer of 2022. As a consequence, the day one loss, reflecting the loss at the time of falling outside the own-use exemption has been recognised as special items amounting to DKK 93 million. In addition, a loss of gas sold back to the market in Q1 2024 has been recognised as special items amounting to DKK 17 million (2023: DKK 53 million). In Q4 2024 all conditions for the sale of land and buildings from H+H Polska Sp. z o.o. to a Polish residential developer have been fulfilled. The sales price of PLN 110 million (approximately DKK 190 million) have been paid in cash and the gain of DKK 156 million has been recognised as special items. The restructuring initiated in 2023 continued in 2024 and amounted to DKK 68 million (2023: 133 million), and mainly comprise directly associ- ated costs to the German re-organisation including costs related to termination of employees. In addition to the inefficient gas hedge and restructuring costs mentioned above three factories in Germany and two in Poland were closed down in 2023. This led to the recognition of impairment losses of DKK 101 million which have been recognised in the profit and loss statement as a special item. The main classes of assets affected by the impairment losses are various operational production assets and other machinery and equipment used in the production. Accounting policies Special items include individually significant and non-recurring events and include items such as transaction costs in a business combination, gain and loss for sale of significant fixed assets, close down of plants, restructuring costs, including redundancy costs and significant inefficient commodity hedges. Special items are recognized and measured in accordance with the relevant accounting policy and IFRS accounting stand- ards, as if the items had not been classified as special items. Special items are shown separately from the Group’s ordinary operations to facilitate a better understanding of the Group’s financial perfor- mance. 8 Financial income (DKK million) 2024 2023Interest income 39 24Total 39 24 Accounting policies Financial income comprises interest income, capital gains, transactions denominated in foreign currencies, amortisation of financial assets, and surcharges and allowances under the tax prepayment scheme etc. 9 Financial expenses (DKK million) 2024 2023Interest expenses 92 61Interests expense, leases 7 5Interest on financial items 99 66Financial expenses relating to pension plans; see note 20 2 0Foreign exchange rate adjustments 1 2Other financial expenses 7 9Total 109 77 Accounting policies Financial expenses comprise interest expenses on debt measured at amortised cost, past service costs, capital losses, recirculation of cumu- lative translation differences of entities disposed of payables and transactions in foreign currencies, and amortisation of financial liabilities, including finance lease obligations etc. H+H International | Annual Report 2024 | 99In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 10 Tax (DKK million) 2024 2023Tax for the year 21 (37)Tax on other comprehensive income 4 (18)Total 25 (55)Total tax can be broken down as follows:Current tax for the year 67 13Adjustment relating to changes in tax rate (4) (1)Adjustment of deferred tax (48) (82)Change in valuation of tax assets - 4Prior-year adjustments 10 11Total 25 (55)Tax for the year can be broken down as follows:Calculated 22.0% (2023: 22.0%) tax on income from ordinary activities (7) (62)Adjustment of calculated tax relative to 22.0% rate (2023: 22.0%) (19) (18)Tax effect of:Change in valuation of tax assets - 4Unrecognised tax losses 40 27Change in tax rate (4) -Non-deductible expenses/non taxable income 1 1Prior year adjustment 10 11Total 21 (37) Accounting policies Tax on result for the year comprises current tax and changes in deferred tax for the year. The portion that relates to result for the year is recog- nized in the income statement, and the portion that can be attributed to items in other comprehensive income or directly in equity is recognized in other comprehensive income or directly in equity. Subsidiaries that utilise tax losses in other subsidiaries pay joint taxation contributions to the parent company equivalent to the tax base of the utilised losses, while subsidiaries with tax losses that are utilised by other subsidiaries receive joint taxation contributions from the parent company equivalent to the tax base of the tax losses utilised (full absorption). The jointly taxed companies are taxed under the tax prepayment scheme. Where the H+H Group receives a tax deduction in the calculation of taxable income in Denmark or abroad as a result of share-based payment schemes, the tax effect of these schemes is recognised in tax on result for the year. If the total deduction exceeds the total remuneration ex- pense, the tax effect of the excess deduction is recognised directly in equity. Approach to taxes As recommended by the Danish Committee on Corporate Governance, H+H has adopted a tax policy. For more details on our approach to taxes, we refer to our tax policy which can be found here: https://www.hplush.com/en/compliance In addition to the Committee’s best practice guidelines, the Global Sustainability Standard Board (GSSB) has issued GRI 207 TAX 2019. The H+H tax policy addresses the essence of the Committee’s recommendations and the disclosures of GRI 207, and thereby forms the foundation for a common tax approach for the H+H Group. In order to increase transparency, we present key figures on tax jurisdiction levels below. Corporate income tax is based on IFRS reporting standards instead of GRI methodology to ensure internal coherence throughout the annual report. H+H International | Annual Report 2024 | 100In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 10 Tax – continued Country-by-country key figures - IFRS2024Revenues from Property, Corporate intragroup plant and Balance income Total Revenues transactions equipment of intra-tax paid Number of employee from third-with other tax and company on a cash (DKK million)employeesremunerationparty salesjuridictionsinventorydebtbasisDenmark 46 64 150 - 24 99 -UK 207 111 871 - 354 141 (3)Germany 368 237 600 229 1,139 (240) 2Poland 582 147 846 5 487 (12) 60Switzerland 23 20 127 - 143 4 5Holland 9 8 90 - 2 11 (1)Sweden 4 3 19 - 2 (3) -Czech Republic 6 2 44 - - - -Total 1,245 592 2,747 234 2,151 - 64 Current tax explanation on country level Non-taxable Calculated local income and tax using Group non-deductable Other (DKK million)tax rate (22%) costs, netadjustments Deferred tax Current taxDenmark 2 (3) - 1 -UK 18 - 4 (22) -Germany 65 3 (37) (31) -Poland (70) (1) 10 - 61Switzerland (7) - (2) 3 6Holland (1) - - 1 -Sweden - - - - -Czech Republic - - - - -Total 7 (1) (25) (48) 67 11 Income statement classified by function It is Group policy to prepare the income statement based on an adapted classification of costs by function and adjusted for special items. Depre- ciation, amortisation and impairment of property, plant and equipment and intangible assets are therefore classified by function and presented on separate lines. Furthermore, special items are presented on a separate line. The table below shows an extract of the income statement adapted to show depreciation, amortisation and impairment and special items classified by function: (DKK million) 2024 2023Revenue 2,747 2,672 Cost of goods sold (2,417) (2,458)Gross profit including depreciation, amortisation and special items 330 214Sales costs (186) (197)Administrative costs (261) (273)Other operating income 170 36Other operating costs (12) (10)EBIT 41 (230) Depreciation and amortisation comprise:Amortisation of intangible assets 47 45Depreciation of property, plant and equipment 140 142Total 187 187Depreciation and amortisation are allocated to:Cost of goods sold 118 118Sales costs 45 45Administrative costs 24 24Total 187 187 Special items are allocated to:Cost of goods sold 131 232Sales costs 19 3Administrative costs 28 52Other operating items (156) 52Total 22 287 H+H International | Annual Report 2024 | 101In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 11 Income statement classified by function – continued Accounting policies Cost of goods sold comprise costs incurred in generating the revenue for the year. The trading entities recognise cost of sales, and the producing entities recognise production costs, relating to revenue for the year. This includes the direct and indirect cost of raw materials and consumables, distribution and wages and salaries. Sales costs comprise marketing costs etc. which includes costs of sales personnel, and advertising and exhibition costs. Administrative costs include costs incurred during the year for management and administration, including costs for administrative staff, office premises and office expenses. Administrative costs also include impairment of trade receivables. 12 Earnings per share (EPS) 2024 2023Average number of shares 16,500,000 16,842,466Average number of treasury shares (162,049) (515,384)Average number of shares in circulation 16,337,951 16,327,082Average number of restricted shares 162,049 58,610Average number of outstanding shares, diluted 16,500,000 16,385,692Result for the year (DKK million) (50) (246)Attributable to non-controlling interest (3) (2)Shareholders in H+H International A/S (DKK million) (53) (248)Earnings per share (EPS) (DKK) (3.2) (15.0)Diluted earnings per share (EPS-D) (DKK) (3.2) (15.0) See calculation principle in financial ratios on page 121. 13 Intangible assets 2024Customer Other intan-(DKK million) Goodwillrelationsgible assets TotalTotal cost at 1 January 2024 452 363 129 944Foreign currency translation adjustments - 1 - 1Transfer - - 14 14Additions during the year - - 12 12Total cost at 31 December 2024 452 364 155 971Total depreciation and amortisation at 1 January 2024 (30) (184) (68) (282)Amortisation for the year - (37) (10) (47)Total amortisation and impairment losses at 31 December 2024 (30) (221) (78) (329)Carrying amount at 31 December 2024 422 143 77 642 2023Customer Other intan-(DKK million) Goodwillrelationsgible assets TotalTotal cost at 1 January 2023 447 361 108 916Foreign currency translation adjustments 5 2 1 8Transfer - - 4 4Additions during the year - - 26 26Disposals during the year - - (10) (10)Total cost at 31 December 2023 452 363 129 944Total depreciation and amortisation at 1 January 2023 (28) (148) (68) (244)Foreign currency translation adjustments (2) - (1) (3)Amortisation for the year - (36) (9) (45)Amortisation of disposals - - 10 10Total amortisation and impairment losses at 31 December 2023 (30) (184) (68) (282)Carrying amount at 31 December 2023 422 179 61 662 H+H International | Annual Report 2024 | 102In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 13 Intangible assets – continued Impairment testing Identification of cash-generating units The identified cash-generating units ('CGU') are aligned with H+H’s operating segments, being Central Western Europe (‘CWE’), Poland and United Kingdom. Management is of the opinion that the lowest level of cash-generating unit to which the carrying amount of goodwill can be allocated is in each CGU. 2024 2023DKK DKK Cash-generating units and related goodwill Year of originmillionmillionPoland 2003 23 23UK N/A - -Central Western Europe 2006/18/19/20/21 399 399Total 422 422 Management has tested goodwill for impairment in each of the cash-generating units to which such assets have been allocated. In both 2024 and 2023, the impairment tests concluded a reasonable headroom and consequently no impairment of goodwill has been recognised. Key assumptions Management tests goodwill for impairment for each CGU to which such assets have been allocated at least once a year or if key assumptions have changed leading to an indication of possible impairment. For the purpose of the impairment testing the recoverable amounts were defined as the value in use calculated by using a discounted cash flow model (‘DCF’). The impairment testing for each of the CGUs concluded a reasonable headroom still exists and Management believes that any likely changes in the key assumptions will not cause the carrying amount of goodwill and non-current assets to exceed the recoverable amounts. The impairment tests were based on Management's financial expectations for 2025 and financial forecasts for the years 2026-2029 for all CGUs. The markets are expected to remain at the activity level of 2024 throughout 2025, for then to pick-up from 2026 and onwards. H+H has in both 2023 and 2024 adjusted its capacity to reflect the current demand. Management sees a slowly improved building activity. It is Management assessment, that the factory close downs in 2023 have not negatively affected the expected future cash in-flows to be generat- ed from each of the CGUs as the remaining factories within each of the CGUs has sufficient capacity to supply existing markets both on short, mid- and long term. In addition the close down of the factories in 2023 has resulted in a number of cost savings along with other cost saving initiatives in the organisation, which will lead to an improved profitability than seen in recent year's. Other assumptions are mainly based on historic trends as well as Management’s best estimate and external benchmarked data, having cash flows at a normalized level from 2026. The key assumptions for the impairment test are annual growth in revenue ('CAGR') and gross margins, but the valuation is also impacted by growth in terminal period and discounting rates ('WACC'). 2024 2023Continental Continental Western Western Poland Europe Poland Europe Carrying amount of intangible assets, property, plant and equipment at 31 December 2024 (DKK million) 372 1,260 435 1,689 Goodwill (DKK millon) 23 399 23 399 Estimated average annual growth in revenue 2025-2029 (CAGR) 4.8% 9.3% 5.3% 5.9%Estimated average annual growth / decrease in gross margin in percentage points 2025-2029 (0.4)% 2.7% 1.0% 1.0%WACC before tax 14.7% 12.2% 14.9% 12.8%WACC after tax 11.9% 8.8% 12.1% 9.2% The weighted average growth rate used for the terminal period for the years after 2029 has been estimated at 2.0% (2023: 2.0%) for both CGUs. The weighted average annual growth rate for the terminal period is assessed not to exceed long-term average growth rates on the mar- kets of the individual CGUs. Poland's capacity adjustment made in 2023 along with government incentives resulted in a gross margin above expectations, and consequently we expect a slight decrease during the forecast period. For CWE, the gross margin has been estimated to increase for the period 2025-2029, after which it is expected to be constant. The rising gross margin assumes more expedient utilisation of production capacity driven by increased volumes sold and more efficient plant network after closing down old factories. The annual growth in revenue in the forecast period is expected to be 9.3% in CWE (2023: 5.9%) coming from a low 2023 and 2024 level which is expected to pick up from 2026 and onwards. In 2024, the Polish market improved compared to 2023 supported by government incentives, and therefore the expected annual growth in reve- nue in the forecast period of 4.8% (2023: 5.3%) is lower than the expectation for CWE. The CWE market saw continued market decline in 2024, but Management still expect the market to reach 2022 levels in 2027. As a result of the lower base, the expected annual growth in revenue in the forecasted period of 9.3% (2023: 5.9%) has increased. The WACC is based on generally applied principles including the determination of return on equity and cost of debt. Components for the return on equity, the market risk premium, company specific risk premium and beta-values, is benchmarked to external information. The risk-free rate for both CGUs for the forecast period has been sourced from trading economics and is equal a 10-years government bond. The risk-free rate for the terminal period is normalised. The cost of debt is estimated based on the actual margin in the bank agreements and the risk-free rate. WACC components applied are similar for both CGUs apart from the risk-free rates which differentiate. H+H International | Annual Report 2024 | 103In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 13 Intangible assets – continued Sensitivity on changes in key assumptions Group Management believes that likely changes in the key assumptions will not cause the carrying amount of goodwill and non-current assets to exceed the recoverable amounts. Sensitivity analysis of impairment tests focuses on changes in discount rate (WACC), revenue growth, gross margin and long-term growth rate. All other factors are unchanged in the sensitivity analysis. Based on sensitivity analyses, it is Management’s opinion that no probable change in any key assumptions would cause the carrying amounts of CGUs to exceed the recoverable amount as at 31 December 2024. Accounting policies Goodwill is recognised initially in the balance sheet at cost. Subsequent to initial recognition, goodwill is measured at cost less accumulated im- pairment losses. Goodwill is not amortised. On acquisition, goodwill is allocated to the cash-generating units which subsequently form the basis for impairment testing. Goodwill and fair value adjustments in connection with the acquisition of a foreign entity with a functional currency other than the H+H Group’s presentation currency are accounted for as assets and liabilities belonging to the foreign entity, and translated on initial recognition into the foreign entity’s functional currency at the exchange rate at the transaction date. Any excess of the fair value over the cost of acquisition (negative goodwill) is recognised in the income statement at the date of acquisition. The carrying amount of goodwill is allocated to the H+H Group’s cash-generating units at the date of acquisition or as of the date when the cash-generating units’ identification has changed. The determination of cash-generating units follows the H+H Group’s organisational and internal reporting structure. Goodwill is tested for impairment annually, the first time before the end of the year of acquisition. The carrying amount of goodwill is tested for impairment together with the other non-current assets of the cash-generating unit to which the goodwill has been allocated and written down to the recoverable amount in the income statement if the carrying amount exceeds the recoverable amount. As a rule, the recoverable amount is determined as the present value of the expected future net cash flows from the entity or activity (cash-generating unit) to which the goodwill relates. The carrying amounts of other non-current assets are reviewed annually to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. The recoverable amount of an asset is the higher of its fair value less expected disposal costs and its value in use. The value in use is determined as the present value of expected future cash flows from the asset or the cash-generating unit to which the asset belongs. An impairment loss is recognised whenever the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. Im- pairment losses are recognised in the income statement under depreciation and amortisation. Impairment losses relating to goodwill are not reversed. Impairment losses relating to other assets are reversed to the extent that the assumptions or estimates that led to the impairment loss have changed. Impairment losses are only reversed to the extent that the asset’s new carrying amount does not exceed the value the asset would have had after depreciation/amortisation if no impairment losses had been charged. Other intangible assets comprise of customer relations, order-book, trademarks, development projects and patent and licenses. Customer relations, order book and trademarks acquired in connection with business combinations are measured at cost less cumulative amortisation and impairment losses. They are amortised using a straight-line method over the expected useful life. Development projects that are clearly defined and identifiable, and for which technical feasibility, adequate resources and a potential future market or an application in the entity can be demonstrated, and which the entity intends to manufacture, market or use, are recognised as intangible assets if the cost can be determined reliably and if there is reasonable certainty that the future earnings or the net selling price will cover production costs, selling costs, administrative expenses and development costs. Other development costs are recognised in the income statement as incurred. Recognised development costs are measured at cost less cumulative amortisation and impairment losses. Cost comprises salaries, amortisa- tion and other expenses attributable to the H+H Group’s development activities and interest expenses on loans to finance development projects that relate to the production period. On completion of the development work, development projects are amortised on a straight-line basis over the estimated economic useful life from the date the asset is available for use. The amortisation period is normally 5-10 years. The amortisation base is reduced by any impairment losses. Patents and licenses are measured at cost less cumulative amortisation and impairment losses. Patents and licenses are amortised on a straight-line basis over the shorter of the remaining patent or contract period and the useful life. Software and other intangible assets are depreciated on a straight-line basis over the expected useful lives of the assets as follows: • Software 3-8 years • Customer relations 10 years • Other intangible assets 1-10 years Significant accounting estimates Impairment of goodwill and non-current assets Significant accounting estimates relates to determining key assumptions of the impairment test in its whole. In preparing the impairment test, a range of significant accounting estimates are made, i.e., determining future cash flows, identifying CGU’s, determining growth rates in respec- tively the forecast period and terminal period and WACC. The value in use is the discounted value of the expected future cash flows. This valuation involves developing different scenarios to reflect outcomes. It is based on the forecast for 2025 approved by the Board of Directors and financial forecasts for the years 2026-2029 for all CGUs. Assumptions are based on historic trends as well as external benchmarked data. Local conditions, such as expected development in macroeco- nomic and market conditions, are considered. All assumptions are challenged and verified by management. H+H International | Annual Report 2024 | 104In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 14 Property, plant and equipment 2024Property, Other plant and equipment, equipment Land and Plant and fixtures and under con-(DKK million)buildingsmachineryfittingsstruction TotalTotal cost at 1 January 2024 1,443 2,532 327 332 4,634Foreign currency translation adjustments 12 31 3 4 50Transfers 17 110 - (141) (14)Additions, including right-of-use assets 40 44 32 45 161Disposals during the year (121) (84) (24) - (229)Total cost at 31 December 2024 1,391 2,633 338 240 4,602Total depreciation and amortisation at 1 January 2024 (689) (1,922) (250) - (2,861)Foreign currency translation adjustments (6) (21) (1) - (28)Depreciation for the year (36) (74) (30) - (140)Depreciation of disposals 47 73 23 - 143Total depreciation and impairment losses at 31 December 2024 (684) (1,944) (258) - (2,886)Carrying amount at 31 December 2024 707 689 80 240 1,716Right-of-use assets included asAdditions 32 - 17 - 49Disposals (70) - (16) - (86)Depreciation (6) - (20) - (26)Depreciation of disposals 6 - 14 - 20Carrying amount at 31 December 67 - 38 - 105 2023Property, Other plant and equipment, equipment Land and Plant and fixtures and under con-(DKK million)buildingsmachineryfittingsstruction TotalTotal cost at 1 January 2023 1,413 2,467 303 316 4,499Foreign currency translation adjustments 33 56 3 2 94Transfers 8 36 - (48) (4)Additions, including right-of-use assets 32 44 34 65 175Disposals during the year (43) (71) (13) (3) (130)Total cost at 31 December 2023 1,443 2,532 327 332 4,634Total depreciation and amortisation at 1 January 2023 (646) (1,815) (216) - (2,677)Foreign currency translation adjustments (13) (40) (1) - (54)Depreciation for the year (59) (37) (46) - (142)Impairment for the year - (101) - - (101)Depreciation of disposals 29 71 13 - 113Total depreciation and impairment losses at 31 December 2023 (689) (1,922) (250) - (2,861)Carrying amount at 31 December 2023 754 610 77 332 1,773Right-of-use assets included asAdditions 21 - 18 - 39Disposals (1) - (3) - (4)Depreciation (6) - (23) - (29)Depreciation of disposals 1 - 3 - 4Carrying amount at 31 December 105 - 42 - 147 H+H International | Annual Report 2024 | 105In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 14 Property, plant and equipment – continued Right-of-use-assets The Group leases land and buildings, offices, cars and forklift trucks. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Total cash outflows for leases amounts to DKK 32 million (2023: DKK 32 million). Lease liabilities and interest relating to recognised lease contracts are included in Note 26. Future minimum lease payments relating to leases not recognised in the balance sheet amount to DKK 0 million (2023: DKK 0 million). At 31 December 2024 the Group was committed to short- term and low value leases for an amount of DKK 1 million (2023: DKK 1 million). The maturity analysis of lease liabilities is disclosed in note 26 Financial instruments and risks. Accounting policies Land and buildings, plant and machinery, fixtures and fittings, and tools and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises purchase price and any costs directly attributable to the acquisition up to the date the asset is available for use. The cost of self-constructed assets comprises direct and indirect costs of materials, components, sub suppliers and labor. Cost is increased by estimated costs for dismantling and removal of the asset and restoration costs, to the extent that they are recognised as a provision, and interest expenses on loans to finance the production of property, plant and equipment that relates to the production period. The cost of a combined asset is divid- ed into separate components that are depreciated separately if the components have different useful lives. Subsequent costs, for example in connection with replacement of part of an item of property, plant or equipment, are recognised in the carrying amount of the asset if it is probable that future economic benefits will flow to the H+H Group from the expenses incurred. The replaced part is derecognised in the balance sheet, and the carrying amount is transferred to the income statement. All other expenses for general repair and maintenance are recognised in the income statement as incurred. Property, plant and equipment are depreciated on a straight-line basis over the expected useful lives of the assets as follows: • Buildings 30-50 years • Production equipment, autoclaves, mills, cutting machines and moulds 10-30 years • Plant, machinery and other equipment 5-20 years • Vehicles, fixtures and IT equipment 3-10 years • Land is not depreciated The main part of the Group's non-current assets comprises of production equipment, autoclaves, mills, cutting machines, presses and moulds which are depreciated over a period of 10-30 years. The depreciation base is determined taking into account the asset’s residual value and is reduced by any impairment losses. The residual value is determined at the date of acquisition and reviewed annually. Depreciation ceases if the residual value of an asset exceeds its carrying amount. The effect on depreciation of any changes in depreciation period or residual value is recognised prospectively as a change in accounting estimates. Leases At the commencement date, the Group recognises a lease liability and a corresponding right-of-use asset at the same amount, except for short- term leases of 12 months or less and leases of low-value assets. The interest rate implicit in the lease or the H+H Group’s incremental borrowing rate is used as the discount rate for calculating the lease liability and a corresponding right-of-use asset. A right-of-use asset is initially measured at cost, which equals the initial lease liability and initial direct costs less any lease incentives received. The Group has applied the practical expedient option allowed under IFRS by using a portfolio approach for the recognition of lease contracts related to assets of the same nature and with similar lease terms, i.e. cars and trucks. Subsequently, the right-of-use asset is measured at cost less depreciation and impairment losses and adjusted for remeasurement of the lease liability. The right-of-use asset is depreciated over the earlier of the lease term or the useful life of the asset. The impairment testing of right-of-use assets follows the same principles as those applied for property, plant and equipment. Right-of-use assets are recognised as property, plant and equipment. The Group has elected not to recognise right-of-use assets and liabilities for leases with a term of 12 months or less and leases of low-value as- sets. Lease payments related to such leases are recognised in the income statement as an expense on a straight-line basis over the lease term. Management considers all the facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. Extension or termination options are only included in the lease term if the lease is reasonably certain to be extended or not terminated. Judgement is applied in determining the depreciation period and future residual value of the assets recognized and is generally based on historical experience. Reassessment is done annually to ascertain that the depreciation basis applied is still representative and reflects the expected life and future residual value of the assets. H+H International | Annual Report 2024 | 106In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 15 Deferred tax (DKK million) 2024 2023Deferred tax at 1 January (23) (93)Prior years adjustments (10) (11)Foreign exchange adjustments (1) 2Effect of change in tax rate 4 1Change in deferred tax 48 82Valuation of tax asset - (4)Deferred tax at 31 December 18 (23)(DKK million) 2024 2023Deferred tax relates to:Non-current assets (85) (116)Current assets (1) (2)Liabilities 17 29Tax loss carry-forwards 87 66Total 18 (23)Breakdown of deferred tax and recognition in the balance sheet:Deferred tax assets 54 31Deferred tax liabilities (36) (54)Total 18 (23) No deferred tax has been recognised on the difference between the cost of equity investments and the carrying amount. This is because the shareholdings in the equity investments are all considered to be ”shares in a subsidiary”, and any gain/loss is therefore not taxable. The tax value of loss carry-forwards has been recognised as deferred tax assets in the companies where, based on forecasts, it is considered likely that this can be utilised in future earnings. A tax value of loss carry-forwards of DKK 73 million at 31 December 2024 (2023: DKK 33 million) has not been recognized as deferred tax assets, as these are not considered likely to be utilised, especially given the current macro-economic environment. The carry-forward losses, which does not have an expiry date, relate to Germany, Denmark and Sweden. Accounting policies Income tax and deferred tax: Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method, providing for all temporary differences between the carrying amount and tax base of assets and liabilities. However, the following temporary differences are not recognised: Goodwill not deductible for tax purposes and other items – apart from business combinations – where temporary differences have arisen at the date of acquisition that affect neither profit nor taxable income. Where alternative tax rules can be applied to compute the tax base, deferred tax is measured on the basis of Management’s planned use of the asset or settlement of the liability respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised as other non-current assets at the value at which they are expected to be utilised either by elimination against tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity and jurisdiction. Deferred tax assets and liabilities are offset if the H+H Group has a legally enforceable right to offset current tax liabilities and assets or intends to settle current tax liabilities and assets on a net basis or to realise tax assets and liabilities simultaneously. Adjustment of deferred tax is made in respect of elimination of unrealised intra-group profits and losses. Deferred tax is measured on the basis of the tax rules and at the tax rates that will apply under the legislation enacted at the balance sheet date in the respective countries when the deferred tax is expected to crystallise in the form of current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement. Under the joint taxation rules, H+H International A/S, as the administration company, becomes liable to the tax authorities for the subsidiaries’ income taxes as the subsidiaries pay their joint taxation contributions. Joint taxation contributions payable and receivable are recognised in the balance sheet under receivables from/payables to subsidiaries. Significant accounting judgements Recovery of deferred tax assets: Deferred tax assets are recognised for all unutilised tax loss carry-forwards to the extent it is considered likely that the losses can be offset against taxable income in the foreseeable future. The amount recognised for deferred tax assets is based on judge- ment of the likely date and size of future tax loss carry-forwards. H+H International | Annual Report 2024 | 107In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 16 Non-controlling interest Non-controlling interest Set out below is summarised financial information for each subsidiary that has a non-controlling interest that are material to the group. The amounts stated are the consolidated accounting figures of the individual enterprise, determined according to H+H accounting policies. Amounts are stated before intra-group eliminations. Baustoffwerke Dresden Porenbetonwerk Laussnitz DOMAPOR GmbH & Co. KGGmbH & Co. KGBaustoffwerke GmbHPrincipal activities Production Production Production Owership (voting rights) 51% 51% 53%Principal place of business Dresden, Germany Laussnitz, Germany Hohen Wangelin, GermanyFinancial information (DKK million) 2024 2023 2024 2023 2024 2023Revenue 100 100 90 55 103 84Result for the period (7) 6 4 (8) 10 5Cash flow from operating activities 6 0 10 (1) 21 1Dividend paid to non-controlling interest - 6 5 0 - 0Total assets 141 151 114 127 122 142Non-current liabilities 73 73 27 14 26 23Current liabilities 7 6 9 13 4 19Accummulated non-controlling interest 15 29 37 38 29 18 Accounting policies Transactions with non-controlling interests are accounted for as transactions with shareholders. Net assets acquired are not revalued on the acquisition of non-controlling interests. Any difference between the carrying amount and the acquisition or selling price is recognised in equity. 17 Costs of goods sold and inventories (DKK million) 2024 2023Raw materials and consumables 144 131Finished goods and goods for resale 291 526Total 435 657Write-downs recognised in the inventories above have developed as follows:Write-downs at 1 January 35 31Write-downs for the year 2 7Realised during the year (5) (2)Reversals (2) (1)Total 30 35Production costs comprised (before special items):Direct production costs 1,320 1,265Wages and salaries 309 340Production overheads 211 216Distribution 326 280Write-downs for the year 2 7Total 2,168 2,108 Accounting policies Inventories are measured at cost using the FIFO method. Where the net realisable value is lower than the cost, inventories are written down to this lower value. In the case of goods for resale, and raw materials and consumables, cost comprises purchase price plus expenses incurred in bringing the inventories to their existing location and condition. In the case of finished goods, cost comprises raw materials, consumables, direct labor and production overheads. Production overheads comprise indirect materials and labor as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the production process, and the cost of factory administration and management. The net realisable value of inventories is determined as the selling price less any costs of completion and costs incurred to execute the sale. The net realisable value is determined on the basis of marketability, obsolescence and developments in expected selling price. H+H International | Annual Report 2024 | 108In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 18 Trade and other receivables (DKK million) 2024 2023Trade receivables, gross 149 133Write-downs (2) (2)Rebates and bonus (34) (29)Other receivables 39 74Total 152 176 Other receivables include a receivable from rent deposits, VAT, other indirect taxes etc. Other receivables fall due within one year of the balance sheet date. (DKK million) 2024 2023Age analysis of trade receivables (gross):Not past due 129 1170-30 days 16 1431-90 days 2 -91-180 days 1 1Over 180 days 1 1Total trade receivables 149 133Write-downs relating to receivables, year-end 2 2 The average credit period on sales of goods is approximately 30 days. The expected credit losses on trade receivables are estimated using a provision matrix and the Group has recognised a loss allowance of 100% against all receivables over 180 days because historical experience has indicated that these receivables are generally not recoverable. In determining the expected credit losses, we have taken into account the historical default experience, the financial position of the counter- parties and considering various external sources of actual and forecast economic information, as appropriate, in estimating the probability of default of each of these financial assets occurring within their respective loss assessment time horizon, as well as the loss upon default in each case. Receivables that are not past due are predominantly deemed to have a high credit quality and security is normally not required. The Group’s customers are typically large well-consolidated builders’ merchants and housebuilders, and customers are credit rated on a regular basis. Only limited security had been provided on 31 December 2024. (DKK million) 2024 2023Write-downs of receivables:Write-downs at 1 January 2 2 Write-downs for the year 0 1 Realised during the year 0 (1)Reversals 0 0 Write-downs relating to receivables at 31 December 2 2 Accounting policies Receivables are measured at amortised cost, which in all material respects corresponds to the nominal value less a loss allowance equal expect- ed credit loss. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. Expected credit losses on receivables are recognised as other external expenses. The expected credit losses on receivables are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Prepayments recognised under assets comprise expenses incurred in respect of subsequent financial years. Prepayments are measured at amortised cost. H+H International | Annual Report 2024 | 109In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 19 Share capital and treasury shares Nominal value, NumberDKK million2024 2023 2024 2023Share capital at 1 January 16,500,000 17,500,000 165 175Movements - (1,000,000) - (10)Share capital at 31 December 16,500,000 16,500,000 165 165 On 4 May 2023, and with reference to Company Announcement no. 532 of 31 March 2023 and Company Announcement no. 533 of 4 May 2023, the approved reduction of the share capital by a nominal amount of DKK 10,000,000 from DKK 175,000,000 to DKK 165,000,000 through the cancellation of 1,000,000 shares of nominally DKK 10.00 each was registered at the Danish Business Authority. On 5 May 2022, and with reference to Company Announcement no. 479 of 31 March 2022 and Company Announcement no. 485 of 5 May 2022, the approved reduction of the share capital by a nominal amount of DKK 4,833,650 from 179,833,650 to DKK 175,000,000 through the cancella- tion of 483,365 shares of nominally DKK 10.00 each was registered at the Danish Business Authority. There have been no other movements in the share capital in the last five years. % of share Nominal value, capital, Treasury shares NumberDKK million8,700 0.09 year-end(0.1)Holding at 1 January 2023 1,218,731 12.19 ( 7.0 )Purchased during the year Granted due to matching share programme in 2020 (65,382) (0.65) 0.4Share capital decrease (1,000,000) (10.00) 6.1Holding at 31 December 2023 162,049 1.62 (1.0)Purchased during the year - - -Share capital decrease - - -Granted due to matching share programme in 2021 - - -Holding at 31 December 2024 162,049 1.62 (1.0) On 3 March 2022, H+H International A/S initiated a share buy-back program in compliance with Article 5 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Commission Delegated Regulation (EU) 1052/2016 of 8 March 2016 (the “Safe Harbour Regulation”). The share buy-back program is in full described in Company Announcement no. 469 of 3 March 2022. In 2022, a total of 1,110,100 shares were acquired at a total purchase price of DKK 149 million in connection with the 2022 share buy-back program. As announced in Company Announcement 525 the share buy-back program were concluded on 4 January 2023 with the remaining acquisition of 8,700 shares for a total purchase price of DKK 1 million. All the treasury shares are owned by H+H International A/S. Treasury shares not related to the share buy-back program are acquired in order to hedge liabilities related to the share programs. Refer to note 4 for further information on the share programs. Accounting policies Equity: Proposed dividends are recognised as a liability at the date of adoption at the annual general meeting (declaration date). Treasury shares: Acquisition costs, disposal costs and dividends relating to treasury shares are recognised directly in retained earnings under equity. Capital reductions as a result of cancellation of treasury shares reduce the share capital by an amount equivalent to the nominal value of the shares. Proceeds from the sale of treasury shares in H+H International A/S in connection with the exercise of share options are taken directly to equity. 20 Pension obligations Under defined contribution plans, the employer is obliged to pay a specific contribution (e.g. a fixed amount or a fixed percentage of salary). Under such plans, the Group does not bear the risk associated with future developments in interest rates, inflation, mortality and disability. Under defined benefit plans, the employer is obliged to pay a specific amount (e.g. a retirement pension as a fixed amount or a fixed percentage of final salary). Under such plans, the Group bears the risk associated with future developments in interest rates, inflation, mortality and disability. Foreign entities that are not insured or only insured in part (defined benefit plans) calculate the obligation actuarially at present value at the balance sheet date. These pension plans are fully or partly funded in pension funds for the employees. In the consolidated financial statements, an amount of DKK 21 million (2023: DKK 59 million) has been recognised under liabilities in respect of the Group’s obligations to existing and former employees after deduction of the assets associated with the plans. On 31 December 2024, the actuarial valuation of the defined benefit plan in the UK showed a net asset deficit of DKK 7.5 million (GBP 0.8 mil- lion), consequently triggering IFRIC 14 for H+H to recognise future committed pension contributions of the scheme as they do not have unconditional right to a refund. Value of future committed pension contributions amounts to DKK 5 million. H+H International | Annual Report 2024 | 110In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 20 Pension obligations – continued In the consolidated income statement, an amount of DKK 5 million (2023: DKK 5 million) has been recognised in respect of expenses relating to insured plans (defined contribution plans). For non-insured plans (defined benefit plans), an amount of DKK 0 million (2023: DKK 0 million) has been recognised in the consolidated income statement as financial expenses. The Group has defined benefit plans in the UK, Germany and Switzerland. The UK and Swiss pension plans are managed by a pension fund – legally separate from the Company – to which payments are made, whereas the German pension plans are unfunded. The board of the UK pension fund is composed of two representatives appointed by the employer, two elected by the pension fund members and two professional independent members. The board of the UK pension fund is required by law and by articles of association to act in the interest of the pension fund members. The board of the UK pension fund is responsible for the investment policy with regard to the plan assets. Under the pension plan, employees are entitled to post-retirement annual payments amounting to 1/60 of the final pensionable salary for each year of service before the retirement age of 65. In addition, the service period is limited to 40 years, resulting in a maximum yearly entitlement (lifetime annuity) of 2/3 of the final pensionable salary. The defined benefit pension fund in the UK typically exposes the Company to actuarial risks, such as investment, interest rate, inflation and lon- gevity. H+H Celcon Pension Fund is supervised by an independent corporate trustee, H+H Celcon Pension Fund Trustee Limited. In accordance with the legislation governing pension funds, the corporate trustee must ensure among other things that a limited actuarial calculation of the pension obligations is carried out each year. Every 3 years a triennial valuation takes place. This valuation is based on more prudent assumptions than used under IAS 19. The updated triennial valuation, postponed from April 2023, was finally agreed on 13 December 2024, with the Actuarial certificate signed on 27 January 2022, replacing the triennial valuation from April 2020 (current). The updated triennial valuation showed a deficit of DKK 64 million (GBP 7.4 million), a decreased deficit compared to the triennial valuation from April 2020 of DKK 143 million (GBP 16.5 million). The updated repayment schedule runs until to 28 February 2025 and H+H UK Limited is obliged to pay core contributions of DKK 2.6 million (GBP 0.3 million) per month until that date. The UK pension fund was closed to new entrants in June 2007 and to the accrual of future service benefits in December 2011. The most recent actuarial valuations (based on IAS 19R) of plan assets and the present value of the defined benefit obligation in UK were carried out at 31 December 2024 by Mr. Oscar Brown, Fellow of the UK Institute of Actuaries (Axis Actuarial Consulting Ltd.), in Germany by AON and in Switzerland by Swiss Life. The present value of the defined benefit obligation, and the related service and past service cost, were measured using the projected unit credit method. The UK pension fund has been replaced by a defined contribution pension scheme where the Company is not subject to any ongoing investment, interest rate or mortality risk. (DKK million) 2024 2023Pensions and similar obligations: Present value of fully or partly funded defined benefit plans 541 574Fair value of plan assets 533 522(Surplus)/Deficit 8 52Present value of unfunded defined benefit plans recognised in the balance sheet 8 7Future committed pension contribution (UK) 5 0Net obligation recognised in the balance sheet 21 59Development in present value of defined benefit obligation:Obligation at 1 January 581 512Foreign exchange adjustments 23 13Calculated interest on obligation 25 23Service costs 1 1Gains/losses as a result of changes in economic assumptions (55) 17Gains/losses as a result of changes in demographic assumptions (4) (1)Empirical changes 1 45Pension paid by employees 4 2Pension paid (27) (31)Obligation at 31 December 549 581Breakdown of the present value of defined benefit obligation:Present value of fully or partly funded defined benefit obligations 541 574Present value of unfunded defined benefit obligations 8 7Obligation at 31 December 549 581 H+H International | Annual Report 2024 | 111In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 20 Pension obligations – continued (DKK million) 2024 2023Development in fair value of plan assets:Plan assets at 1 January 522 489Foreign exchange adjustments 23 13Calculated interest income 23 23Return on plan assets over and above the calculated interest (35) (6)The Group's contributions to plan assets 30 32The employee's contributions to plan assets 4 2Value of derecognised plan assets (7) -Pensions paid (27) (31)Plan assets at 31 December 533 522Pension costs relating to the current financial year, recognised as staff costs:Pension costs relating to defined contribution plans 6 5Total pension costs 6 5Financial costs relating to the defined benefit plans for the current year:Calculated interest on obligation (24) (23)Calculated interest on plan assets 23 23Net interest on defined benefit plans (1) -Pension costs recognised in other comprehensive income:Gains/losses as a result of change in economic assumptions 56 (17)Gains/losses as a result of change in demographic assumptions 5 1Return on plan assets over and above the calculated interest (35) (6)Future committed pension contribution (12) -Changes due to empirical changes (1) (46)Total 13 (68) The cost has been recognised in the income statement under staff costs; see note 4. Costs recognised under production costs amount to DKK 3 million (2023: DKK 3 million), costs recognised under sales and distribution costs amount to DKK 2 million (2023: DKK 1 million) and costs recognised under administrative costs amount to DKK 1 million (2023: DKK 1 million). (DKK million) 2024 2023Plan assets can be broken down as follows:Diversified Growth Fund - 82Liability Driven Investment 170 171Global equities 190 171Bonds 133 52Alternatives 44 39Cash 3 7Value of derecognised plan assets (7) -Total 533 522 * All plan assets in the UK, DKK 493 million (2023: DKK 484 million), are investments held in LGIM funds, which in turn invest directly in highly rated assets that are traded on a stock exchange. Alternatives relates to the Swiss pension plan of DKK 44 million (2023: DKK 38 million) and includes assets with no quated market price. (DKK million) 2024 2023Return on plan assetsActual return on plan assets (12) 17Calculated interest on plan assets 23 23Actuarial gain (loss) on plan assets (35) (6)The average assumptions used for the actuarial calculation related to the UK pension at the balance sheet date can be stated as follows:Discount rate (avg.) 5.5% 4.5%Expected inflation rate 3.3% 3.3%Members’ life expectancy from retirement age (years) 22.9 22.5 H+H International | Annual Report 2024 | 112In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 20 Pension obligations – continued Sensitivity analysis The table below shows the sensitivity of the UK pension obligation to changes in the key assumptions for determination of the obligation on the balance sheet date. The H+H Group is also exposed to developments in the market value of the plan assets. The key actuarial assumptions in determination of the pension obligation relate to interest rate level and mortality. The analysis is based on the reasonably likely changes which can be expected on the balance sheet date, provided that the other parameters in the calculations are unchanged and not subject to consequential changes: (DKK million) 2024 2023Sensitivity relative to discount rate:If the discount rate falls by 0.5 percentage point, the pension obligation will increase by 32 41Sensitivity relative to inflation rate:If the inflation rate increase by 0.5 percentage point, the pension obligation will increase by 14 22Sensitivity relative to life expectancy from retirement age:If the life expectancy from retirement age increases by 1 year, the pension obligation will increase by 19 21 The Group expects to pay DKK 7 million into the defined benefit pension plan in 2025 (2024: DKK 28 million). (DKK million) 2024 2023The pension obligation is expected to fall due as follows:0-1 year 7 281-5 years 12 122Over 5 years 24 432Total 43 582 Actuarial assumptions Discount rate The discount rate is based on high-quality corporate bonds, and an adjustment has been made to reflect the fact that the duration of the bonds does not correspond to the duration of the pension obligation. Price inflation Inflation is based on market expectations for inflation over the duration of the pension liabilities and is calculated as a single equivalent rate. Demographic assumptions are based on the latest available mortality projection model. Accounting policies Pension obligations: The H+H Group has entered into pension agreements and similar agreements with some of its employees. Obligations relat- ing to defined contribution plans are recognised in the income statement over the vesting period, and any contributions payable are recognised in the balance sheet as other payables. As regards defined benefit plans, the value in use of future benefits to be paid under the plan is determined actuarially on an annual basis. The value in use is determined on the basis of assumptions concerning future trends in factors such as salary levels, interest rates, inflation and mortality. The value in use is determined only for the benefits attributable to service already rendered to the H+H Group. The actuarially deter- mined value in use less the fair value of any plan assets is recognised in the balance sheet under pension obligations. If a defined benefit pension plan constitutes a net asset it will trigger IFRIC 14 and recognise future committed pension contributions to the scheme as the Group does not have unconditional right to a refund. The pension costs for the year are recognised in the income statement based on actuarial estimates and the financial outlook at the start of the year. Past service costs are recognised in the income as a financial item. Differences between the expected development in plan assets and obligations and the realised values determined at year-end are designated as actuarial gains or losses and recognised in other comprehensive income. Significant accounting estimates Defined benefit pension plans: The present value of pension obligations depends on the actuarial assumptions made. These assumptions comprise the discount rate, inflation rate, estimated return on plan assets, future salary increases, mortality and future developments in pension obligations. All assumptions are reviewed at the reporting date. Any changes in the assumptions will affect the carrying amount of the pension obligations. H+H International | Annual Report 2024 | 113In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 21 Provisions (DKK million) 2024 2023Provisions at 1 January 38 47Provisions for the year 54 11Utilised during the year (23) (13)Reversals during the year - (7)Provisions at 31 December 69 38Breakdown of the provisions at 31 December:Warranty obligations 1 1Obligations relating to restoration of sites 28 27Restructuring and other employee related provisions 23 1Other provisions 17 9Total 69 38Expected maturity of provisions:Non-current liabilities 43 31Current liabilities 26 7Total 69 38 H+H’s subsidiaries provide normal warranties in respect of products supplied to customers. The provision for warranty obligations thus relates to warranties provided in respect of products supplied prior to the balance sheet date. The warranty period varies depending on normal practice in the markets in question. The warranty period is typically between one and five years. Warranty obligations have been determined separately for each company based on normal practice in the market in question and historical warranty costs. On 31 December 2024, warranty obligations relate predominantly to Germany and Poland. The obligation in respect of restoration of sites relates to H+H’s sites in Germany and Poland. The obligation has been calculated on the basis of external assessments of the restoration costs. Accounting policies Provisions are recognised when, as a result of an event occurring before or at the balance sheet date, the H+H Group has a legal or constructive obligation, the settlement of which is expected to result in an outflow from the company of resources embodying economic benefits. The measurement of provisions is based on Management’s best estimate of the amount expected to be required to settle the obligation. In connection with the measurement of provisions, the costs required to settle the obligation are discounted to net present value if this has a ma- terial effect on the measurement of the obligation. A pre-tax discount rate is applied that reflects the general interest rate level plus the specific risks attached to the provision. The changes in present values during the financial year are recognised under financial expenses. A provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical warranty data. Provision for restructuring is recognised when a detailed formal plan for the restructuring has been made public, no later than the balance sheet date, to those affected by the plan. A provision for onerous contracts is recognised when the benefits expected to be derived by the H+H Group from a contract are lower than the unavoidable costs of meeting its obligations under the contract. If the H+H Group has an obligation to dismantle or remove an asset or restore the site on which the asset has been used, a provision equivalent to the present value of the expected future expenses is recognised. H+H International | Annual Report 2024 | 114In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 22 Credit institutions (DKK million) 2024 2023Bank loans, non-current 1,048 911(DKK million) 2024 2023Bank loans, current - -Lease liabilities 1 January 119 108Amortised borrowing costs (2) (4)Total 1,046 907Change in borrowings from financing activitites:(DKK million) 2024 2023Borrowings 1 January 907 742Change in proceeds - 245Bank overdraft and other debt 139 (80)Borrowings 31 December 1,046 907Change in lease liabilities:Cash flows (32) (32)New/disposed/remeasured lease 10 35Foreign exchange adjustments 1 8Lease borrowings 31 December 98 119 Committed credit facilities is conditional upon compliance with a number of financial covenants; see note 26. Accounting policies Bank loans etc. are recognised at the date of borrowing at the proceeds received net of transaction costs incurred. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest rate method. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement under financial expenses over the term of the loan. The lease liability is measured at the present value of the remaining lease payments at the reporting date, discounted using the incremental borrowing rate for similar assets, taking into account the terms of the leases. A remeasurement of the lease liability, for example a change in the assessment of an option to purchase, results in a corresponding adjustment of the related right-of use assets. Extension or termination options are included in the lease term if the lease is reasonably certain to be extended or not terminated. Consequent- ly, all cash outflows that are reasonably certain to impact the future cash balances are recognised as lease liabilities at initial recognition of lease contracts. The Group reassesses the circumstances leading to it not recognising extension or termination options on an ongoing basis. 23 Contingent liabilities Operating leases Material leases for the H+H Group are recognised in accordance with IFRS 16 “Leases”. An amount of DKK 2 million (2023: DKK 1 million) has been recognised in the consolidated income statement for 2024 in respect of operating leases and rental obligations. Financial guarantee Subsidiaries drawdowns at 31 December 2024 amounts to DKK 823 million (2023: DKK 568 million). In addition, hereto, third party guarantees provided by H+H International A/S and its subsidiaries amounts to DKK 24 million at 31 December 2024 (2023: DKK 24 million). Pension scheme In June 2023, the High Court judged that amendments made to the Virgin Media scheme were invalid because the scheme’s actuary did not provide the associated Section 37 certificate necessary. The High Court’s decision has wide ranging implications, affecting other schemes that were contracted-out on a salary-related basis, and made amendments between April 1997 and April 2016. H+H UK’s scheme was contracted out until 31 December 2011 and amendments were made during the relevant period. As such the ruling could have implications for the H+H Group. The amount of any potential impact on the defined benefit obligation cannot be confirmed and measured with sufficient reliability at the 2024 year-end. We will review again at the 2025 year-end when we expect further clarity. Other The H+H Group is not a party of any material legal proceedings. H+H International | Annual Report 2024 | 115In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 24 Auditors’ remuneration (DKK million) 2024 2023Total fees for H+H International A/S's auditors elected at the annual general meeting:Fee 5.0 3.6Total 5.0 3.6The total fee can be broken down as follows:Statutory audit 3.5 3.2Other assurance engagements 1.5 0.1Other services 0.0 0.3Total 5.0 3.6 A few Group enterprises are not audited by the Parent’s appointed auditors (PwC) or the auditors’ foreign affiliates. Non-audit services provided by PwC Denmark amounted to DKK 1.5 million in 2024 (2023: DKK 0.4 million), relating to assurance services on sustainability matters and other advisory services. 25 Business combinations No business combinations were completed in 2024 or 2023. In relation to the Domapor acquisition 31 December 2021, H+H Deutschland GmbH entered into a Domination and profit/loss transfer agree- ment ("DPLTA”) with the sellers of DOMAPOR whereby H+H Deutschland GmbH for a 20-year period is obliged to pay an annual consideration of EUR 0.89 million for the first ten years and EUR 0.82 million for the following ten years, allowing H+H Deutschland GmbH to obtain the rights related to a minority shareholding of 47.5% in DOMAPOR. This obligation has been recognised as a liability as deferred payments related to the acquisition. 26 Financial instruments and financial risks H+H’s financial risk management policy As a result of its operations, H+H is exposed to various financial risks i.e. foreign exchange risks, as well as capital structure and cash flow risks, bad debt exposure and financial covenants. H+H’s financial risk management policy and procedures is thus aimed exclusively at managing the financial risks that are a direct consequence of H+H’s operations. This note relates only to financial risks directly associated with H+H’s financial instruments. Foreign exchange risks H+H presents its consolidated financial statements in DKK. Most of H+H’s products are produced and sold outside Denmark. Sales in markets outside Denmark account for approximately 90% of revenue, with the UK, Germany and Poland being the largest markets. All H+H entities do mainly trade in local currencies, such as GBP, EUR and PLN, as all raw materials are sourced locally, and the majority of cus- tomers are within the given region. The Nordic subsidiaries make their purchases in EUR. Therefore the currency exposure is assessed limited on ordinary activities. Material foreign exchange exposure does only relate to specific events, such as dividend or significant transactions. H+H’s foreign exchange hedging policy and procedures states that an individual group subsidiary must not take foreign exchange positions. Instead, Treasury needs to be consulted, and if relevant, financial instruments in foreign currencies are entered into if the foreign exchange exposure exceeds certain thresholds, also depending on the character of exposure. Due to the nature of H+H activities, financial instruments in foreign currencies are only limitedly used. Commodity price risks Commodity price risks in H+H mainly relate to fluctuations in Energy prices which are used either directly in the production or through purchase of components such as lime, where the price could be linked to the certain energy prices. The risk is managed in accordance with the Treasury Policy, primarily by entering into fixed price agreements with suppliers for a shorter timeframe or passing development in energy prices on to the customers. Capital structure and cash flow risks The H+H Group has significant net interest-bearing debt. An increase in the interest rate level will lower the Group's pre-tax result. It is H+H‘s policy to hedge interest rate risks on H+H’s loans if it is assessed that the interest payments can be hedged at a satisfactory level. Historically, the interest rate has only to a very limited extent been hedged and H+H has therefore benefited from lower short-term rates compared with long-term rates. The H+H Group’s liquidity risk is defined as the risk that the H+H Group will not, in a worst-case scenario, be able to meet its financial obligations due to insufficient liquidity. It is the H+H Group’s policy that all surplus funds flow upwards to be managed centrally by the parent company. H+H’s capital structure contains a Global Cash Pool arrangement supported by individual loans. Most group subsidiaries participate in the Global Cash Pool arrangement and the parent company sets limits for all overdraft facilities included herein. H+H aims that financing of group subsidiaries are managed within the Global Cash Pool arrangement, or via intercompany loans from the parent company to the relevant group subsidiary. If necessary, the parent company may decide to approve that financing of a group subsidiary is obtained externally. H+H regularly evaluates the capital structure on the basis of expected cash flows with a view to ensuring an appropriate balance be- tween adequate future financial flexibility and a reasonable return to shareholders. H+H International | Annual Report 2024 | 116In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements Bad debt exposure As consequence of it’s ordinary activities, H+H is exposed to the risk of bad debt. This risk is primarily related to receivables in respect of sales of H+H’s products, which for the majority is invoiced through a number of builders’ merchants across several countries. This reduces the H+H’s risk of bad debt exposure towards contractors and house builders, but consequently increases it to builders’ merchants. In line with H+H’s credit risk hedging procedures, all customers are subject to mitigating actions, i.e. credit rating, assessment of payment terms or credit limits etc., which all constitutes that H+H’s risk of bad debt are at a very low level - which also is supported by the very modest bad debt losses realised in previous years. The maximum related credit risk corresponds to the carrying amounts recognised in the balance sheet. The H+H Group does not have any material risks relating to a single customer, business partner or country. Refer to note 18. Loan agreements and financial covenants H+H Group’s financing is a committed credit facility with Nordea Danmark, a branch of Nordea Abp, Finland. The Group facility is subject to covenants related to debt leverage, defined as net adjusted NIBD by 12 months rolling adjusted EBITDA and an interest cover defined as adjusted NIBD divided by 12 month rolling net interest paid. The covenant is tested and reported end of each quarter until the maturity of the facility. The Group fulfilled all financial covenants in 2024 and are also expected to be fulfilled in 2025. Monetary items in foreign currency 2024(DKK million) EUR GBP PLN Others Total DKK TotalTrade receivables 20 38 25 14 97 16 113Other receivables 26 2 6 2 36 3 39Cash 30 137 259 36 462 - 462Trade payables (45) (143) (45) (30) (263) (9) (272)Other payables (35) (95) (50) (8) (187) 7 (181)Deferred payment (99) - - - (99) - (99)Credit institutions (242) (31) (1) - (274) (772) (1,046)Gross exposure (345) (92) 194 14 (229) (755) (984)Net exposure (345) (92) 194 14 (229) (755) (984) 2023(DKK million) EUR GBP PLN Others Total DKK TotalTrade receivables 18 28 33 4 83 19 102Other receivables 58 - 13 2 73 1 74Cash 26 41 40 36 143 - 143Trade payables (51) (175) (45) (8) (279) 1 (278)Other payables (108) (24) (45) (24) (201) (9) (210)Deferred payment (106) - - - (106) - (106)Credit institutions (100) (48) - (12) (160) (751) (911)Gross exposure (263) (178) (4) (2) (447) (739) (1,186)Net exposure (263) (178) (4) (2) (447) (739) (1,186) Sensitivity of result and equity to market fluctuations (DKK million) 2024 2023Result Equity Result Equity5% increase in GBP/DKK (3) 14 (1) 165% increase in PLN/DKK 13 43 (1) 2910 57 (2) 45 26 Financial instruments and financial risks – continued H+H International | Annual Report 2024 | 117In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 26 Financial instruments and financial risks – continued The table above shows the sensitivity of result and equity to market fluctuations. A decline in the GBP/DKK and PLN/DKK exchange rates would result in a corresponding increase in re after tax and equity. The sensitivity analysis has been calculated at the balance sheet date on the basis of the exposure to the stated currencies at the balance sheet date. The calculations are based solely on the stated change in the exchange rate and do not take into account any knock-on effects on interest rates, other exchange rates etc. Interest rate exposure2024 2023Net Weighted Net Weighted interest- time to interest- time to bearing Interest Net maturity bearing Interest Net maturity (DKK million)debthedged positionof hedgingdebthedged positionof hedgingDKK 776 - 776 - 756 - 756 -EUR 254 - 254 - 122 - 122 -PLN (211) - (211) - 20 - 20 -CHF (28) - (28) - (28) - (28) -GBP (101) - (101) - 12 - 12 -Other (8) - (8) - 5 - 5 -Total 682 - 682 - 887 - 887 - The table above illustrates H+H’s interest rate exposure on financial instruments at the balance sheet date. At 31 December 2024, the Group was not involved in any interest rate swaps. All other things being equal, based on the H+H’s average net interest-bearing debt (expressed by quarter), an increase of 1 percentage point per year in the interest rate level relative to the average interest rate level in 2024 would reduce result for the year before tax and equity by DKK 9 million (2023: DKK 8 million). The interest rate is variable, changing in accordance with the performance relative to the covenants contained in the loan agreement. H+H’s financial liabilities fall due as follows: (DKK million) 2024Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 yearsNon-derivative financial instrumentsCredit institutions and banks 1,046 28 1,094 -Lease liability 98 25 42 32Deferred payment 99 7 27 74Trade payables 272 272 - -Other payables 181 181 - -1,696 513 1,162 107Derivative financial instrumentsOther payables - - - -- - - -Total 1,696 513 1,162 107 (DKK million) 2023Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 yearsNon-derivative financial instrumentsCredit institutions and banks 907 42 943 -Lease liability 119 29 64 74Deferred payment 106 7 33 75Trade payables 278 278 - -Other payables 73 73 - -1,483 429 1,040 149Derivative financial instrumentsOther payables 138 138 - -138 138 - -Total 1,621 567 1,040 149 H+H International | Annual Report 2024 | 118In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 26 Financial instruments and financial risks – continued Derivative financial instruments As of 31th December 2024, H+H did not have any derivative financial instruments. In 2023, a gas contract with fixed volumes and prices failed to meet the ‘own use exemption”, and were therefore recognised using the hedge accounting principles in accordance with IFRS 9. As of 31 December 2023, the ‘day one loss’ and fair value of the commodity forward contracts amounted to DKK 126 million and DKK 138 million, respectively, and thus included in other payables with a net liability of DKK 12 million. The notional amount for commodity contracts amounts to DKK 192 million as of 31th December 2023 and the average hedged price per KwH were DKK 1.03. Categories of financial instruments 2024 2023Carrying Fair Carrying Fair (DKK million)amountvalueamountvalueTrade receivables 113 113 102 102Derivative financial instrument (day one loss) - - 126 126Other receivables 39 39 74 74Cash 462 462 139 139Total financial assets measured at amortised costs 614 614 441 441Credit institutions and banks 1,046 1,046 907 907Trade payables and other payables 453 453 477 477Total financial liabilities measured at amortised cost 1,499 1,499 1,384 1,384Derivative financial instrument - - 138 138Fair value through other comprehensive income - - 138 138Total financial instruments, net 885 885 1,081 1,081 H+H International | Annual Report 2024 | 119In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements 26 Financial instruments and financial risks – continued Fair values Fair value for derivative financial instruments measured at fair value Derivative financial instruments recognised only contain the above-mentioned commodity forward contracts, settled during 2024, which are measured at fair value using generally accepted valuation techniques based on observable market prices and forward market rates and there- fore categorised as Level 2 in the fair value hierarchy. No assets or liabilities are measured at fair value as of 31 December 2024, and thus no assets or liabilities are measured at level 1 or 3 in the fair value hierarchy in 2023 or 2024. Classification and assumptions for the calculation of fair value for non-derivative financial instruments measured at amortised cost Current bank loans at variable interest rates are valued at a rate of 100. The fair value of long-term loans and finance leases is calculated using models that discount all estimated and fixed cash flows to net present value. The expected cash flows for the individual loan or lease are based on contractual cash flows. Financial instruments relating to sale and purchase of goods etc. with a short credit period are considered to have a fair value equal to the carrying amount. The methods are unchanged from last year. Accounting policies Fixed price and volume contracts for energy such as gas and electricity are accounted for using the ‘own use’ exemption and recognized in the profit and loss statement upon realization of the usage. These contracts are on frequent basis assessed if the ‘own use’ assumptions are still valid. If contracts are in breach with the ‘own use’ assumption a ‘day one loss/gain’ corresponding to the fair value of the underlying derivative as of the date of identifying the breach are recognised, and the contracts are subsequently accounted for using the hedge accounting principles for derivative financial instruments. The day one loss/gain are transferred to the profit and loss statement upon realization of the underlying hedged item. Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are included as other receivables and other payables, respectively. Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of future cash flows are recognised in other comprehensive income. Gains and losses relating to such hedging transactions are transferred from other comprehensive income to the income statement upon realisation of the hedged item or when the hedge relationship is no longer effective. Changes in the fair value of deriva- tive financial instruments that do not qualify for hedge accounting are recognized in the income statement. 27 Related parties The Group’s related parties are the Executive Board and the Board of Directors. Apart from contracts of employment, no agreements or transactions have been entered into between the Company and the Executive Board. Remuneration to the Board of Directors and the Executive Board is disclosed in note 4. H+H International A/S has no controlling shareholders. 28 Events after the balance sheet date No events have occurred after the balance sheet date that will have a material effect on the H+H Group’s financial position. H+H International | Annual Report 2024 | 120In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the consolidated financial statements Financial ratios Other financial ratios have been prepared in accordance with the Danish Finance Society‘s guidelines. The financial ratios under Key figures in the Management’s review have been calculated as follows: Gross margin Gross profit x 100 Revenue EBITDA margin EBITDA x 100 Revenue EBIT margin EBIT x 100 Revenue Return on invested capital * EBIT Average invested capital Earnings per share (EPS) ** Result for the year Average number of shares outstanding Diluted earnings per share (EPS-D) ** Diluted earnings Diluted average number of shares outstanding Solvency ratio Equity at year-end (attributable to H+H) x 100 Total equity and liabilities, year-end Financial gearing Net interest-berring debt EBITDA NIBD/EBITDA Net interest-bearing debt, year-end EBITDA * Return on invested capital is measured on a twelve months basis. Glossary bsi Before special items CAPEX Capital expenditure SG&A Selling, general and administrative expenses EBITDA Operating profit before depreciation, amortization and financial items EBIT Operating profit before financial items Special items Refer to note 7 for accounting policy for special items Margins before special items Consists of defined margins adjusted for special items re above and note 7 Organic growth Revenue growth excluding effects from changes in foreign exchange rates and revenue from acquisitions and divestments FTE and average FTE Full-time employees and average number of full-time employees Free cash flow The sum of cash flow from operating and investing activities Net working capital Net working capital is inventories, trade receivables, and other receivables less trade payables and other payables. Invested capital Invested capital is calculated as net working capital plus tangible assets and intangible assets excluding goodwill deducted by provisions and operating non-current liabilities. Earnings per share Earnings per share (EPS) and diluted earnings per share (EPS-D) are determined in accordance with IAS 33 Net interest-bearing debt Net interest-bearing debt is credit institutions and lease liabilities less cash funds CSRD Corporate Social Responsibility Directive ESRS European Sustainability Reporting Standards SBM Strategy and Business Model MDR Minimum Disclosure Requirement IRO Impacts, Risks and Opportunities GOV Governance REC Renewable Energy Certificate BP Basis for Preparation EEA European Economic Area H+H International | Annual Report 2024 | 121In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Parent company financial statements 2024 Income statement 123 Statement of comprehensive income 123 Balance sheet 124 Statement of changes in equity 125 Statement of cash flows 125 Notes to the parent financial statements 1 Material accounting policy information 126 2 Significant accounting estimate and judgement 126 3 Staff costs and remuneration 126 4 Auditors remuneration 126 5 Financial items 127 6 Tax 127 7 Intangible assets 127 8 Property, plant and equipment 127 9 Deferred tax 127 10 Investments in subsidiaries 128 11 Credit institutions and lease liabilities 129 12 Contingent liabilities 129 13 Financial instruments and risks 129 14 Related parties 130 15 Events after balance sheet date 130 H+H International | Annual Report 2024 | 122In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Income statement Statement of comprehensive income Note (DKK million) 2024 2023 3, 4 Administrative costs (65) (58) Other income 64 56 EBITDA before special items (1) (2) Depreciation and amortisation (6) (5) EBIT before special items (7) (7) Special items (3) (6) EBIT (10) (13) 5 Financial items (257) 133 Result before tax (267) 120 6 Tax - 5 Result for the year (267) 125 Result for the year attributable to: H+H International A/S' shareholders (267) 125 Result for the year (267) 125 Note (DKK million) 2024 2023 Result for the year (267) 125 Other comprehensive income after tax - - Total comprehensive income for the year (267) 125 H+H International | Annual Report 2024 | 123In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Balance sheet at 31 December Note (DKK million) 2024 2023 Intangible assets 37 31 7 Intangible assets 37 31 Office lease, cars and equipment 2 3 8 Property, plant and equipment 2 3 9 Deferred tax assets 11 11 10 Equity investments in subsidiaries 1,660 1,232 13 Receivables from subsidiaries 1,072 1,510 Other non-current assets 2,743 2,753 Total non-current assets 3,782 2,787 13 Receivables from subsidiaries 92 76 Other receivables and prepayments 5 3 Cash 233 33 Current assets 330 112 Total assets 3,112 2,899 Note (DKK million) 2024 2023 Share capital 165 165 Retained earnings 1,301 1,565 Equity 1,466 1,730 11 Lease liabilities 1 2 11 Credit institutions 968 836 Non-current liabilities 969 838 Trade payables 5 7 11 Lease liabilities 1 1 13 Payables to subsidiaries 660 313 Other payables 11 10 Current liabilities 677 331 Total liabilities 1,646 1,169 Total equity and liabilities 3,112 2,899 Assets Equity and liabilities H+H International | Annual Report 2024 | 124In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Statement of changes in equity Cash flow statement Note (DKK million) Share capital Retained earnings Total Equity at 1 January 2024 165 1,565 1,730 Result for the year (267) (267) Share-based payment - 3 3 Total change in equity - 3 3 Equity at 31 December 2024 165 1,301 1,466 Equity at 1 January 2023 175 1,435 1,610 Result for the year 125 125 Acquisition of treasury shares - (2) (2) Share-based payment - (3) (3) Share capital decrease (10) 10 - Total change in equity (10) 5 (5) Equity at 31 December 2023 165 1,565 1,730 Note (DKK million) 2024 2023 Operating profit (EBIT) (10) (13) Depreciation, amortisation and impairment 6 5 Change in receivables (17) (6) Change in trade payables and other payables (1) (16) Other non-cash adjustments 3 (3) Operating activitites before financial items and tax (19) (33) 4 Financial items, net 8 1 Operating activities (11) (32) Change in borrowings to subsidiares 57 (240) Capital increase in subsidiaries (5) - 10 Dividend from subsidiaries 44 134 7 Acquisition of equipment and intangible assets (11) (13) Investing activities 85 (119) Free cash flow 74 (151) 11 Proceeds in borrowings - 245 Bank overdraft and other debt 132 (103) Payment of lease liabilities (1) (2) Purchase of treasury shares - (2) Financing activities 131 138 Cash flow for the year 205 (13) Cash at 1 January 33 44 Foreign exchange adjustments of cash (5) 2 Cash at 31 December 233 33 H+H International | Annual Report 2024 | 125In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the parent company financial statements 1 Material accounting policy information The financial statements of H+H International A/S for 2024 have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. The accounting policies are consistent with those applied in the consolidated financial statements for 2024, with the following additions: • Shares in subsidiaries are measured at cost or a lower recoverable amount • Dividends from subsidiaries and associated companies are recognised as income at the time of declaration unless considered a return of capital in subsidiary 2 Significant accounting estimates and judgements Management makes various accounting estimates and judgements that form the basis of presentation, recognition and measurement of the Company’s assets and liabilities. The estimates and judgements made are based on historical experience and other factors that management assesses to be reliable, but that by their very nature are associated with uncertainty and unpredictability. Estimates and judgements may there- fore prove incomplete or incorrect, and unexpected events or circumstances may arise. Management assesses impairment indicators for investments in subsidiaries and in general determines the recoverable amounts consistent with the assumptions described in note 13 of the consolidated financial statements. 3 Staff costs and remuneration The Remuneration of the Board of Directors, key management personnel and Executive Board are described in detail in the Remuneration Report. The Executive Board in the Parent Company are the same as for the H+H Group. Please refer to note 4 in the consolidated financial statements for share-based incentive programs. (DKK million) 2024 2023 Wages and salaries 43 43 Share-based payment 2 (5) Other staff costs 1 3 46 41 Staff costs are recognised as follows: Administrative costs 43 36 Special items 3 5 46 41 Average full-time employees 20 21 Total Remuneration: Remuneration to the Executive Board 14 12 Remuneration to the Board of Directors 3 3 17 15 4 Auditors remuneration (DKK million) 2024 2023 Total fees to the auditors elected at the annual general meeting: Statutory audit 1.2 1.0 Other assurance engagements 1.3 0.1 Other services 0.0 0.2 Total 2.5 1.3 H+H International | Annual Report 2024 | 126In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the parent company financial statements 5 Financial items (DKK million) 2024 2023 Interest income from subsidiaries, net 33 22 Dividend from subsidiary 44 134 Write-down of investment in subsidiaries (302) - Interest expenses, net (26) (18) Foreign exchange rate adjustments, net (5) (2) Other financial expenses (1) (3) Total (257) 133 Write-down of investments in subsidiaries relates to the re-structuring of the German business. Refer to note 10. 6 Tax (DKK million) 2024 2023 Current tax for the year - (4) Adjustment of deferred tax - (1) Total - (5) Current joint taxation contribution for the year - (5) Tax for the year can be broken down as follows: Calculated 22.0% (2023: 22.0%) tax on income from ordinary activities (59) 27 Tax effect of: Non-deductible expenses/non taxable income 59 (32) Total - (5) H+H International A/S is taxed jointly with all its Danish subsidiaries. The current Danish income tax is allocated among the jointly taxed compa- nies in proportion to their taxable income. The parent company is the administration company for the jointly taxed Danish companies. Pursuant to the rules on this contained in the Danish Corporation Tax Act, all companies that are jointly taxed are thus liable to withhold tax at source on interest, royalties and dividends for the joint- ly taxed companies for contingent liabilities. The Danish companies are further jointly and severally liable for joint registration of VAT. 7 Intangible assets Intangible assets recognized in the parent company comprises mainly software. 2024 2023 (DKK million) Intangible assets Intangible assets Total cost at 1 January 35 23 Additions during the year 11 12 Total cost at 31 December 46 35 Total amortisation at 1 January (4) (1) Amortisation for the year (5) (3) Total amortisation at 31 December (9) (4) Carrying amount at 31 December 37 31 8 Property, plant and equipment Property, plant and equipment totaled DKK 2 million (2023: DKK 3 million) comprised office leases, cars and equipment. Lease liabilities and interest relating to recognized lease contracts are included in note 11. 9 Deferred tax (DKK million) 2024 2023 Deferred tax at 1 January 11 10 Change in deferred tax - 1 Deferred tax at 31 December 11 11 Deferred tax relates to tax loss carry-forwards The parent company has special carried-forward losses related to sale of property and shares with limited possibilities of use with a taxable value of DKK 11 million (2023: DKK 11 million) which are not recognised. The losses in question have no expiry date. Under the joint taxation rules, H+H International A/S, as the administration company, becomes liable to the tax authorities for the subsidiaries’ income taxes as the subsidiaries pay their joint taxation contributions. Joint taxation contributions payable and receivable are recognised in the balance sheet under receivables from/payables to subsidiaries. H+H International | Annual Report 2024 | 127In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the parent company financial statements 10 Investments in subsidiaries (DKK million) 2024 2023 Acquisition cost at 1 January 1,299 1,299 Additions 730 - Disposals - - Cost at 31 December 2,029 1,299 Impairment losses at 1 January (67) (67) Write-down for the year (302) - Reversal of previous write-down - - Impairment losses at 31 December (369) (67) Carrying amount at 31 December 1,660 1,232 An impairment test for possible impairment of investment in subsidiaries is performed at the end of 2024. The recoverable amount of the in- vestments in subsidiaries with indication of possible impairment at 31 December 2024 is based on the value in use, which has been determined using expected net cash flows based on estimates for the years 2025-2029 and a WACC after tax of 8.8% (2023: 9.2%). The weighted average growth rate used for expected future net cash flows for the years after 2029 has been estimated at 2.0% (2023: 2.0%). It is estimated that the growth rate will not exceed the long-term average growth rate in the respective company’s markets. The impairment tests are performed by applying the same principles as the tests for impairment of goodwill in the Group. As part of the restructuring of the German business, H+H Deutschland GmbH and a subsidiary were legally merged and an intercompany receivable of DKK 725 million from H+H Deutschland GmbH were converted to equity, and subsequently an impairment of DKK 302 million was recognised. No other impairment was recognised in 2024 nor 2023. 2024 2023 Registered office Equity interest, % Equity interest, % KWAY Holding Limited UK 100 100 H+H Deutschland GmbH** Germany 100 100 Hunziker Kalksandstein AG Switzerland 100 100 H+H Nordics A/S Denmark 100 100 HHI A/S af 3. maj 2004 Denmark 100 100 H+H Sverige AB Sweden 100 100 H+H Polska Sp. z o.o. Poland 100 100 H+H Benelux B.V. Netherlands 100 100 Diverse af 29.9.2011 ApS Denmark 100 100 * This activity comprises ownership of H+H UK Holding Limited and thus the activities of H+H UK Limited. ** This activity comprises 51 % ownership of Baustoffwerke Dresden GmbH & Co. KG, 51% ownership of Porenbetonwerk Laussnitz GmbH & Co. KG. and 52.5% ownership of DOMAPOR Baustoffwerke GmbH. *** This activity comprises ownership of Grupa Prefabet S.A. The above list does not include indirectly owned companies without any activities. Accounting policies Equity investments in subsidiaries are measured at cost. If there is any indication of impairment or reversal of prior year’s impairment, an impair- ment test is carried out as described in note 13. Cost is written down to the recoverable amount whenever the carrying amount is higher. H+H International | Annual Report 2024 | 128In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the parent company financial statements 11 Credit institutions and lease liabilities (DKK million) 2024 2023 Bank loans, non-current 970 840 Amortised borrowing costs (2) (4) Total 968 836 Change in borrowings from financing activitites: (DKK million) 2024 2023 Borrowings 1 January 836 694 Change in proceeds - 245 Bank overdraft 132 (103) Borrowings 31 December 968 836 Change in lease liabilities: (DKK million) 2024 2023 Lease liabilities 1 January 3 6 Cash flows (1) (2) New/disposed/remeasured lease - (1) Lease borrowings 31 December 2 3 12 Contingent liabilities Taxes and duties The parent company is the administration company for the jointly taxed Danish companies. Pursuant to the rules on this contained in the Danish Corporation Tax Act, the parent company is thus liable to withhold tax at source on interest, royalties and dividends for the jointly taxed companies for contingent liabilities, and to withhold corporation tax from 1 January 2013. The Group’s Danish companies are further jointly and severally liable for joint registration of VAT. Financial guarantee The parent company H+H International A/S acts as guarantor for the subsidiaries’ drawdowns on the Group’s Global Cash Pool facility. Other The H+H International A/S is not a party of any legal proceedings. Shares in some subsidiaries as well as some specific land and buildings have been pledged as security for a loan agreement with Nordea Dan- mark, branch of Nordea Abp, Finland. 13 Financial instruments and risk The parent company’s activities expose it to various financial risks • Currency risk and interest rate risk • Credit risk • Liquidity risk Monetary items and sensitivity 2024 2023 Position Sensitivity Position Sensitivity (DKK million) Cash and receivables Potential volatility of exchange rate Hypo- thetical impact on result be- fore tax for the year Hypo- thetical impact on equity Cash and receivables Potential volatility of exchange rate Hypo- thetical impact on result be- fore tax for the year Hypo- thetical impact on equity EUR/DKK 750 1% 8 6 1,346 1% 13 10 GBP/DKK (80) 5% (4) (3) (115) 5% (5) (4) 4 3 8 6 * The hypothetical impact on result and equity is significant to the parent company’s financial statements but not necessarily to the consolidated financial statements. H+H International | Annual Report 2024 | 129In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Notes to the parent company financial statements 13 Financial instruments and risk – continued The parent company has significant monetary items in currencies other than the functional currency in the form of loans to subsidiaries. The table above shows the parent company’s key monetary positions broken down by currency and derived sensitivity. Credit risk Loans to subsidiaries and other related parties are considered to have a low credit risk and therefore the impairment provision to be recognised during the period is limited to 12 months of expected credit losses. The credit risk has not increased significantly since the initial recognition and is considered low based on the investment grade credit rating for the Group and the financial strength of the subsidiaries in the Group. There has been no change in the estimation techniques or significant assumptions made during the current reporting period in assessing the loss allowance for these financial assets. Loans to subsidiaries are denominated in EUR and therefore not exposed to foreign exchange risks. Liquidity risk Main focus for the parent company is to maintain a financial reserve to cover its obligations and investments. H+H International A/S’s financial liabilities fall due as follows: (DKK million) 2024 Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 years Non-derivative financial instruments Credit institutions and banks 968 28 1,002 - Payables to subsidaries 660 660 - - Lease liability 2 1 2 - Trade payables 5 5 - - Other payables 11 11 - - Total 1,646 706 1,004 - (DKK million) 2023 Non-derivative financial instruments: Carrying amount 0-1 year 1-5 years Over 5 years Credit institutions and banks 836 44 870 - Payables to subsidaries 313 313 - - Lease liability 4 1 4 - Trade payables 7 7 - - Other payables 8 8 - - Total 1,168 373 874 - 14 Related parties A management fee totaling DKK 64 million (2023: DKK 56 million) was received by the parent Company from the remainder of the Group. Transactions between the parent company and subsidiaries also include deposits, loans and interest. There was no material unsettled balances with related parties at the end of the year. 15 Events after the balance sheet date No events have occurred after the balance sheet date that will have a material effect on the parent company’s financial position. H+H International | Annual Report 2024 | 130In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Statement by the Executive Board and the Board of Directors The Executive Board and the Board of Directors have today discussed and approved the annual report of H+H International A/S for the financial year 2024. The Consolidated Financial Statements and the Parent Company Financial Statements have been prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Management’s Review has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at 31 December 2024 of the Group and the Parent Company and of the results of the Group and Parent Company operations and cash flows for 2024. In our opinion, Management’s Review includes a fair review of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the finan- cial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent Company are facing. Additionally, the sustainability statement, which is part of Management’s Review, has been prepared, in all material respects, in accordance with paragraph 99 a of the Danish Financial Statements Act. This includes compliance with the European Sustainability Reporting Standards (ESRS) including that the process undertaken by Management to identify the reported information (the “Process”) is in accordance with the description set out in the subsection titled “Double materiality assessment“ within the general information section of the sustainability statement. Furthermore, disclosures within subsection titled “EU Taxonomy“ statements in the environmental section of the sustainability statement are, in all material respects, in accordance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”). In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December 2024 with the file name HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. We recommend that the annual report be approved at the annual general meeting. Copenhagen, 4 March 2025 Executive Board Jörg Brinkmann Bjarne Pedersen CEO CFO Board of Directors Kent Arentoft Miguel Kohlmann Chair Vice chair Stewart Antony Baseley Volker Christmann Kajsa von Geijer Jens-Peter Saul Helen MacPhee H+H International | Annual Report 2024 | 131In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Independent Auditor’s Reports To the shareholders of H+H International A/S Report on the audit of the Financial Statements Our opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group’s and the Parent Company’s financial position at 31 December 2024 and of the results of the Group’s and the Parent Company’s operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act. Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of Directors. What we have audited The Consolidated Financial Statements (pp 89-121) and Parent Company Financial Statements (pp 123-130) of H+H International A/S for the financial year 1 January to 31 December 2024 comprise income statement and statement of comprehensive income, balance sheet, cash flow statement, statement of changes in equity and notes, including material accounting policy information for the Group as well as for the Parent Company. Collectively referred to as the “Financial Statements”. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Account- ants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regula- tion (EU) No 537/2014 were not provided. Appointment We were first appointed auditors of H+H International A/S on 31 March 2022 for the financial year 2022. We have been reappointed annually by shareholder resolution for a total period of uninterrupted engage- ment of tree years including the financial year 2024. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. H+H International | Annual Report 2024 | 132In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Key audit matter How our audit addressed the key audit matter Revenue recognition including Recognition of revenue is complex due to the volume of transactions and variable considerations. We focused on this area due to the significance of amounts involved and because recognition of revenue includes management judgement regarding timing and provisions for quantum rebates and customer bonuses, which is complex by nature. Consequently, there is a risk that the estimates including methods, applied data or assumptions made by Management are inaccurate. Further, the volume of transactions involves various it-systems and business processes, which are complex and introduce an inherent risk to the revenue recogni- tion process. Reference is made to note 3 in the Consolidated Finan- cial Statements. Our audit procedures included considering the appropri- ateness of the accounting policies for revenue recognition applied by Management and assessing compliance with IFRS Accounting Standards, including disclosure require- ments. We performed risk assessment procedures with the pur- pose of achieving an understanding of it-systems, busi- ness procedures and relevant controls related to revenue recognition. In respect of relevant controls, we assessed whether they were designed in line with the Group’s accounting policies and were implemented effectively to address the risk of material misstatement. For relevant controls, on which we planned to rely, we test- ed whether these controls were operating effectively. We tested revenue recognition on a sampling basis to underlying evidence, including quantum rebates and customer bonuses for consistency with terms and condi- tions of the underlying customer contracts. We evaluated Management’s calculations for quantum rebates and customer bonuses, including the evaluation of estimates made by Management. Further, we tested revenue recog- nised around year-end to determine whether recognised in the correct period. In addition, we applied data analysis in our testing of rev- enue transactions in order to identify and assess transac- tions outside the ordinary transaction flows. Statement on Management’s Review Management is responsible for Management’s Review (pp 2-88). Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Finan- cial Statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether Management’s Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99 a related to the sustain- ability statement covered by the separate auditor’s limited assurance report hereon. Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act, except for the requirements in paragraph 99 a related to the sustainability statement, cf. above. We did not identify any material misstatement in Management’s Review. Management’s responsibilities for the Financial Statements Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. H+H International | Annual Report 2024 | 133In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Auditor’s responsibilities for the audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collu- sion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective- ness of the Group’s and the Parent Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti- mates and related disclosures made by Management. • Conclude on the appropriateness of Management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or condi- tions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inade- quate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the finan- cial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter. Report on compliance with the ESEF Regulation As part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of H+H International A/S for the financial year 1 January to 31 December 2024 with the filename HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regu- lation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes. H+H International | Annual Report 2024 | 134In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes: • The preparing of the annual report in XHTML format; • The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary; • Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human-readable format; and • For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all mate- rial respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include: • Testing whether the annual report is prepared in XHTML format; • Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; • Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including notes; • Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; • Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and • Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements. In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December 2024 with the file name HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation. Hellerup, 4 March 2025 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 33 77 12 31 H+H International | Annual Report 2024 | 135In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Poul P. Petersen State Authorised Public Accountant mne34503 Jacob F Christiansen State Authorised Public Accountant mne18628 Independent auditor’s limited assurance report on the Sustainability Statement To the stakeholders of H+H International A/S Limited assurance conclusion We have conducted a limited assurance engagement on the sustainability statement of H+H International A/S (the “Group”) included in Management’s Review (the “Sustainability Statement”), pages 49-87, for the financial year 1 January – 31 December 2024. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including: • compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the “Process”) is in accordance with the description set out in subsection “Description of the processes to identify and assess material impacts, risks and opportunities” within the general information section of the Sustainability Statement; and • compliance of the disclosures in subsection “EU Taxonomy” within the environmental section of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”). Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information (“ISAE 3000 (Revised)”) and the additional requirements applicable in Denmark. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor’s responsibilities for the assurance engagement section of our report. Our independence and quality management We are independent of the Group in accordance with the International Ethics Standards Board for Account- ants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Management’s responsibilities for the Sustainability Statement Management is responsible for designing and implementing a process to identify the information reported in the Sustainability Statement in accordance with the ESRS and for disclosing this Process as included in H+H International | Annual Report 2024 | 136In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements subsection “Double Materiality Assessment” within the general information section of the Sustainability Statement. This responsibility includes: • understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders; • identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; • assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and • making assumptions that are reasonable in the circumstances. Management is further responsible for the preparation of the Sustainability Statement, which includes the information identified by the Process, in accordance with the Danish Financial Statements Act paragraph 99 a, including: • compliance with the ESRS; • preparing the disclosures as included in subsection “EU Taxonomy” within the environmental section of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation; • designing, implementing and maintaining such internal control that management determines is neces- sary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and • selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances. Inherent limitations in preparing the Sustainability Statement In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. Auditor's responsibilities for the assurance engagement Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise profes- sional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process include: • Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; • Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and • Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its Process, as disclosed in subsection “Double Materiality Assessment” within the general information section of the Sustainability Statement. Our other responsibilities in respect of the Sustainability Statement include: • Identifying where material misstatements are likely to arise, whether due to fraud or error; and H+H International | Annual Report 2024 | 137In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements • Designing and performing procedures responsive to disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Summary of the work performed A limited assurance engagement involves performing procedures to obtain evidence about the Sustaina- bility Statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement. In conducting our limited assurance engagement, with respect to the Process, we: • Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group’s internal documentation of its Process; and • Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent with the description of the Process set out in subsection “Double Materiality Assessment” within the general information section of the Sustainability Statement. In conducting our limited assurance engagement, with respect to the Sustainability Statement, we: • Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustain- ability Statement, including the consolidation processes, by obtaining an understanding of the Group’s control environment, processes and information systems relevant to the preparation of the Sustaina- bility Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness; • Evaluated whether the information identified by the Process is included in the Sustainability Statement; • Evaluated whether the structure and the presentation of the Sustainability Statement are in accordance with the ESRS; • Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement; • Performed limited substantive assurance procedures on selected information in the Sustainability Statement; • Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclo- sures in the Financial Statements and Management’s Review; • Evaluated the methods, assumptions and data for developing estimates and forward-looking informa- tion; and • Obtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement. Other matter The comparative information included in the Sustainability Statement was not part of this assurance engagement. Our conclusion is not modified in respect of this limitation of scope. Hellerup, 4 March 2025 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 33 77 12 31 H+H International | Annual Report 2024 | 138In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements Jacob F Christiansen State Authorised Public Accountant mne18628 Poul P . Petersen State Authorised Public Accountant mne34503 Contact information Group Head Office H+H International A/S Lautrupsgade 7, 5th Floor DK-2100 Copenhagen Ø Denmark Telephone: +45 35 27 02 00 E-mail: [email protected] www.HplusH.com Company Reg. No.: 49 61 98 12 H+H Benelux B.V. Nikkelstraat 4 6031 TR Nederweert Netherlands Tel.: +31 49 54 50 169 www.HplusH.nl H+H Denmark Skanderborgvej 234 8260 Viby J Denmark Tel.: +45 70 24 00 50 www.HplusH.dk H+H Germany Hans-Böckler-Straße 33 40468 Düsseldorf Germany Tel.: +49 45 54 70 00 www.HplusH.de H+H Sweden Mobilvägen 3 246 43 Löddeköpinge Sweden Tel.: +46 40 55 23 00 www.HplusH.se H+H Czech Republic Beroun-Meˇsto 660 26601 Beroun Czech Republic Tel.: +420 311 644 705 www.VAPIS-sh.cz H+H Switzerland Aarauerstrasse 75 5200 Brugg Switzerland Tel.: +41 56 46 05 466 www.hunziker-kalksandstein.ch H+H UK Celcon House Ightham Sevenoaks Kent TN15 9HZ UK Tel.: +44 17 32 88 63 33 www.HplusH.co.uk H+H Poland ul.Kupiecka 6 03-046 Warsaw Poland Tel.: +48 22 51 84 000 www.HplusH.pl H+H International | Annual Report 2024 | 139In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents H+H International A/S Lautrupsgade 7, 5th Floor 2100 Copenhagen Ø Denmark Telephone: +45 35 27 02 00 Email: [email protected] HplusH.com Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31213800GJODT6FV8QM841Reporting class DOpinionBasis for Opinion2025-03-042025-03-042025-03-04213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember213800GJODT6FV8QM8412024-01-012024-12-31213800GJODT6FV8QM8412023-01-012023-12-31213800GJODT6FV8QM8412024-12-31213800GJODT6FV8QM8412023-12-31213800GJODT6FV8QM8412022-12-31213800GJODT6FV8QM8412023-12-31ifrs-full:IssuedCapitalMember213800GJODT6FV8QM8412024-01-012024-12-31ifrs-full:IssuedCapitalMember213800GJODT6FV8QM8412024-12-31ifrs-full:IssuedCapitalMember213800GJODT6FV8QM8412023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800GJODT6FV8QM8412024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800GJODT6FV8QM8412024-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800GJODT6FV8QM8412023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GJODT6FV8QM8412024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GJODT6FV8QM8412024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GJODT6FV8QM8412023-12-31ifrs-full:RetainedEarningsMember213800GJODT6FV8QM8412024-01-012024-12-31ifrs-full:RetainedEarningsMember213800GJODT6FV8QM8412024-12-31ifrs-full:RetainedEarningsMember213800GJODT6FV8QM8412023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GJODT6FV8QM8412024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GJODT6FV8QM8412024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GJODT6FV8QM8412023-12-31ifrs-full:NoncontrollingInterestsMember213800GJODT6FV8QM8412024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember213800GJODT6FV8QM8412024-12-31ifrs-full:NoncontrollingInterestsMember213800GJODT6FV8QM8412022-12-31ifrs-full:IssuedCapitalMember213800GJODT6FV8QM8412023-01-012023-12-31ifrs-full:IssuedCapitalMember213800GJODT6FV8QM8412023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800GJODT6FV8QM8412022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GJODT6FV8QM8412023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800GJODT6FV8QM8412022-12-31ifrs-full:RetainedEarningsMember213800GJODT6FV8QM8412023-01-012023-12-31ifrs-full:RetainedEarningsMember213800GJODT6FV8QM8412022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GJODT6FV8QM8412023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800GJODT6FV8QM8412022-12-31ifrs-full:NoncontrollingInterestsMember213800GJODT6FV8QM8412023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember1213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember2213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember1213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember2213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember3213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember4213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember5213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember6213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember7213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember1213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember2213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember1213800GJODT6FV8QM8412024-01-012024-12-31cmn:ConsolidatedMember2213800GJODT6FV8QM8412023-01-012023-12-31cmn:ConsolidatedMemberiso4217:DKKiso4217:DKKxbrli:sharesxbrli:pure
Have a question? We'll get back to you promptly.