H+H International - Earnings Release 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.

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