H+H International

Earnings Release • Aug 14, 2019

Interim financial report for H1 2019

Interim financial report for H1 2019

“Strong organic growth and strong operational performance is delivering significant margin improvements which lead to the best financial result for a second quarter and for a first half year in the history of H+H”, says CEO Michael T. Andersen. “In line with our strategy of participating in market restructuring in Germany we gained control of a joint venture of a calcium-silicate factory near Dresden. We continue to pursue further opportunities in Germany in line with the announced strategy.”

Highlights for the period 1 January to 30 June 2019

DKK million	Q2 2019	Q2 2018	H1 2019	H1 2018
Revenue	770	709	1,436	1,143
Organic growth	7%	16%	13%	11%
EBITDA before special items	156	117	253	157
EBIT before special items	114	69	169	82
EBIT margin before special items	15%	10%	12%	7%
NIBD/EBITDA ratio before special items	1.2	2.5	1.2	2.5
Special items	0	7	0	23
Free cash flow excluding acquisitions and divestments	144	125	121	24

Outlook for 2019

H+H updated its outlook for 2019 on 8 August 2019:

• Growth before acquisitions and measured in local currencies is expected to be around 8% (previously around 7%).
• EBITDA before special items is expected to be DKK 510-550 million (previously DKK 460-510 million).
• EBIT before special items is expected to be DKK 330-370 million (previously DKK 280-330 million).
• Investments excluding acquisitions and divestments are expected to be in the region of DKK 140 million including investments for establishing a CSU production line near Gdansk, Poland and IFRS 16 effect (previously in the region of DKK 160 million).

Investor teleconference

H+H International A/S will host an investor teleconference today 14 August 2019 at 16:30 CEST.

To attend the conference call dial +45 35 27 02 29 and meeting ID is 502349.

For further information please contact:

Michael T Andersen, CEO, or Bjarne Pedersen, CSO, on telephone +45 35 27 02 00.

H+H’s core activity is the manufacture and sale of wall building materials, with a revenue in 2018 of DKK 2.5 billion. The main product lines are aircrete blocks and calcium silicate units used for the residential new building segment. H+H has 29 factories in Northern and Central Europe and Northwest Russia with a total output of more than 4 million cubic metres of products annually and has a leading position in most of its markets. H+H has more than 1,600 employees and is listed on Nasdaq Copenhagen.

Attachment

• 378 - Interim financial report H1 2019