XCSE:HH ESEF Annual Report
H+H INTERNATIONAL A/S (XCSE:HH)
ESEF Annual Report
2022-05-11
For: 2022-03-31
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H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 1/17
H+H International A/S
Lautrupsgade 7, 5.
2100 Copenhagen Ø
Denmark
Telephone +45 35 27 02 00
www.HplusH.com
CVR No. 49 61 98 12
LEI: 3800GJODT6FV8QM841
Date:
6 May 2022
Today, the Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or “the Group”) has
adopted the Interim Financial Report for the first quarter of 2022 (“Q1 2022”).
CEO MICHAEL T. ANDERSEN QUOTE
“The first quarter showed solid financial performance with organic growth of 29 percent underpinning the
successful implementation of sales price increases to counter the inflationary pressure on production cost and the
negative impact on margins. This was further highlighted by a record-high EBIT before special items and a strong
margin of 13 percent for the quarter. We expect the inflationary pressure to remain in place in the short-to-medium
term, and we are ready to introduce further sales price increases to protect our earnings margins.”
PERFORMANCE HIGHLIGHTS FOR Q1 2022 (Q1 2021)
• Revenue increased by 36% to DKK 874 million (DKK 642 million). Revenue growth before acquisitions and
divestments measured in local currencies (“organic growth”) was 29% (negative 9%).
• Gross profit was DKK 244 million (DKK 188 million), corresponding to a gross margin of 28% (29%).
• EBIT before special items
1
was DKK 110 million (DKK 64 million), corresponding to an EBIT margin before special
items of 13% (10%).
• Net profit of DKK 72 million (DKK 49 million).
• Free cash flow was negative DKK 63 million (negative DKK 32 million).
• Financial gearing was 0.7 times EBITDA at the end of Q1 2022 (0.6 times at the end of Q1 2021).
1
No special items were recognised in the period from 1 January 2021 to 31 March 2021
Company Announcement No. 486, 2022
Interim Financial Report Q1 2022: record start to the year in challenging market drives
guidance upgrade
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 2/17
Interim financial report
Q1 2022
FINANCIAL HIGHLIGHTS FOR THE PERIOD 1 JANUARY 2022 TO 31 MARCH 2022
DKK million
Q1 2022
Q1 2021
Sales volume (thousand cubic metres)
1,087
960
Revenue
874
642
Organic growth
29%
(9)%
Gross margin before special items
28%
29%
EBITDA before special items
159
109
EBIT before special items
110
64
EBIT margin before special items
13%
10%
Special items
(10)
-
Return on Invested Capital (ROIC)
21%
16%
NIBD/EBITDA before special items ratio
0.7x
0.6x
Free cash flow
(63)
(32)
FINANCIAL OUTLOOK FOR 2022
The financial outlook for the full year 2022 is upgraded as follows:
• Revenue growth before acquisitions and divestments measured in local currencies ("organic growth") is
expected to be in the range of 15% to 20% (previously 10% to 15%).
• EBIT before special items is expected to be in the range of DKK 440 million to DKK 520 million (previously DKK
420 million to DKK 500 million).
The financial outlook for 2022 is based on the following specific assumptions:
• Exchange rates, primarily the British pound ("GBP"), the euro ("EUR") and the Polish zloty ("PLN"), remain at
end-April 2022 levels.
• Energy costs are expected to remain at end-April 2022 levels.
• Raw material costs continue to be impacted by modest inflation from end-April levels.
Q1 2022 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the Q1 2022 Interim Financial Report, a conference call for investors and analysts
is scheduled for Monday 9 May 2022, at 10:00 a.m. CEST. On the call, CEO Michael T. Andersen and CFO Peter
Klovgaard-Jørgensen will present the interim financial report. The presentation will be followed by a Q&A session.
Investors and analysts are invited to participate via phone:
DK: +45 78150108
UK: +44 3333009269
US: +1 6319131422 PIN: 92922209#
• Other participants can follow the conference call via live webcast here.
• The presentation slides for the conference call will be made available beforehand here.
• A replay of the conference call will be available afterwards on H+H’s Investor Relations website here.
H+H’s core activity is the manufacture and sale of wall-building materials with a revenue in 2021 of DKK 3.0 billion. The main
product lines are aircrete blocks and calcium silicate units used for the residential new building segment. H+H has 31 factories in
Northern and Central Europe with a total output of close to 4.5 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 the Nasdaq Copenhagen stock exchange.
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 3/17
Interim financial report
Q1 2022
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
* Invested capital is measured on a rolling 12-months basis
** Investment in property, plant and equipment excludes effects from IFRS 16
Q1 Q1 Full-year
Amounts in DKK million 2022 2021 2021
Income statement
Revenue 874 642 3,020
Gross profit before special items 244 188 905
EBITDA before special items 159 109 591
EBITDA 149 109 567
EBIT before special items 110 64 408
EBIT 100 64 377
Profit before tax 95 59 356
Profit for the period 72 49 321
Balance sheet
Assets 3,461 3,045 3,400
Invested capital* 1,921 1,862 1,852
Investments in property, plant and equipment** 42 27 197
Acquisition and divestment of enterprises - - 238
Net working capital 198 146 65
Equity 1,808 1,553 1,814
Net Interest-bearing debt (NIBD) 452 277 350
Cash flow
Cash flow from operating activities (21) (5) 454
Cash flow from investing activities (42) (27) (427)
Cash flow from financing activities 0 46 (25)
Free cash flow (63) (32) 27
Financial ratios
Organic growth 29% (9)% 13%
Gross margin before special items 28% 29% 30%
EBITDA margin before special items 18% 17% 20%
EBITDA margin 17% 17% 19%
EBIT margin before special items 13% 10% 14%
EBIT margin 11% 10% 12%
Return on invested capital (ROIC) (excl. Goodwill) 21% 16% 20%
Solvency ratio 49% 49% 50%
NIBD/EBITDA before special items ratio 0.7x 0.6x 0.6x
Share data
Share price, end of period (DKK) 184 168 132
Book value per share, end of period (DKK) 104 86 102
Earnings per share 3.9 2.7 17.5
Diluted earnings per share 3.9 2.7 17.5
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 4/17
Interim financial report
Q1 2022
MANAGEMENT’S REVIEW
INCOME STATEMENT FOR THE FIRST QUARTER OF
2022
Revenue
Total revenue increased by 36% to DKK 874 million
in Q1 2022 compared to DKK 642 million in Q1 2021.
Revenue growth before acquisitions and divestments
measured in local currencies (“organic growth”) was
29% in Q1 2022 compared to negative 9% in Q1
2021.
The relatively higher organic growth was in part
driven by the successful implementation of
significant sales price increases to counter the
continued high inflationary pressure as well as
higher sales volumes year-on-year as a result of a
particularly harsh winter in the early months of 2021
causing a slow start to the year.
Revenue in the Central Western Europe region
increased by 36% to DKK 396 million compared to
DKK 292 million in Q1 2021. Organic growth in the
region was 22%. The increase was primarily driven
by higher sales prices for AAC and higher sales
volumes for CSU and, to a lesser extent, higher sales
volumes for AAC and higher sales prices for CSU.
Revenue in the United Kingdom increased by 22% to
DKK 239 million compared to DKK 196 million in Q1
2021. Organic growth in the United Kingdom was
17% driven by higher sales prices.
Revenue in Poland increased by 55% to DKK 239
million compared to DKK 154 million in Q1 2021.
Organic growth was 58%, primarily driven by higher
sales prices, and to a lesser extent, higher sales
volumes in both product categories.
Of the total revenue in Q1 2022 of DKK 874 million,
AAC and CSU constituted 72% and 28%, respectively.
Production cost
Production cost remains impacted by increasing
prices on raw materials, as well as higher transport
prices in the UK from a continued high demand
pressure.
Moreover, H+H has during the first quarter of 2022
continued the planned upgrades and maintenance of
the factory in Feuchtwangen, resulting in relatively
lower production output in the period.
In Q1 2022, H+H also experienced minor production
inefficiencies at certain factories in Germany which
caused relatively higher usage of raw materials
compared to normal production. These included
inefficiencies from the preparations for the planned
upgrade of the Wittenborn factory in Germany,
which is scheduled to commence in May 2022 with
expected completion in Q3 2022.
Gross profit
Gross profit was DKK 244 million compared to DKK
188 million in Q1 2021, corresponding to gross
margins of 28% and 29%, respectively.
Gross profit in the AAC and CSU businesses was DKK
179 million and DKK 65 million in Q1 2022,
respectively. This corresponds to gross margins of
28% and 27% for AAC and CSU, respectively.
EBITDA before special items
EBITDA before special items was DKK 159 million
compared to DKK 109 million in Q1 2021, equalling
EBITDA margins of 18% and 17%, respectively.
Depreciation and amortisation
Depreciation and amortisation in Q1 2022 amounted
to DKK 49 million compared to DKK 45 million in Q1
2021. The increase relates to acquired companies in
Q4 2021.
EBIT before special items
EBIT before special items was DKK 110 million in Q1
2022, compared to DKK 64 million in Q1 2021,
corresponding to an EBIT margin before special
items of 13% and 10%, respectively.
Special items
Special items for the first quarter comprise
restructuring costs of DKK 10 million related to the
acquired AAC factory located in Feuchtwangen in
Bavaria, Germany as well as costs related to changes
to Group Management.
Net financials
Net financials totalled an expense of DKK 5 million in
Q1 2022, on par with Q1 2021.
Revenue, external
Amounts in DKK million 2022 2021
Central Western Europe 396 292
United Kingdom 239 196
Poland 239 154
Total 874 642
Q1
Revenue
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 5/17
Interim financial report
Q1 2022
Profit before tax
Profit before tax amounted to DKK 95 million in Q1
2022, compared to DKK 59 million in Q1 2021.
Tax
Tax for the period amounted to a net expense of
DKK 23 million compared to a net expense of DKK 10
million in Q1 2021. Please refer to note 12 for more
information about tax for the period.
Net profit
Net profit for the period amounted to DKK 72 million
compared to DKK 49 million in Q1 2021. Profit for
the period is attributable to H+H International A/S’
shareholders by DKK 68 million and to non-
controlling interests by DKK 4 million compared to
DKK 49 million and DKK 0 million, respectively, for
Q1 2021.
Comprehensive income
Other comprehensive income for Q1 2022 was a loss
of DKK 43 million compared to an income of DKK 7
million in Q1 2021. The year-on-year decrease was
mainly driven an unfavourable change in actuarial
gain and losses.
CASH FLOW
Operating activities
Cash flow from operating activities in amounted to
negative DKK 21 million compared to negative DKK 5
million in Q1 2021, mainly driven by normal seasonal
negative working capital development of DKK 133
million, driven by an increased level of trade debtors
as result of the relatively high market activity, partly
offset by the relatively higher earnings for the
period.
Investing activities
Cash flow from investing activities amounted to
negative DKK 42 million compared to negative DKK
27 million in Q1 2021.
Financing activities
Cash flow from financing activities amounted to DKK
0 million in Q1 2022 compared to DKK 46 million in
2021. The year-on-year increase was driven by a
change in borrowings of DKK 42 million, primarily
driven by the purchase of treasury shares of DKK 35
million as part of the ongoing share buy-back
programme.
BALANCE SHEET
The balance sheet total on 31 March 2022 was DKK
3,461 million, against DKK 3,045 million on 31 March
2021.
Net interest-bearing debt
Net interest-bearing debt totalled DKK 452 million
on 31 March 2022 corresponding to an increase of
DKK 102 million since 31 December 2021.
The increase in net interest-bearing debt since the
beginning of the year was primary driven by normal
seasonal negative working capital development,
capital expenditures, and the purchase of treasury
shares, partly offset by earnings for the period.
On 31 March 2022, the Group’s financial gearing was
0.7 times net interest-bearing debt to EBITDA before
special items, which remains comfortably below the
Group’s long-term financial target of 1-2x EBITDA
before special items.
The Group’s net interest-bearing debt excluding
leasing totalled DKK 352 million on 31 March 2022,
corresponding to an unused committed bank facility
of DKK 0.7 billion.
Equity
The consolidated equity decreased by DKK 6 million
compared to 31 December 2021 and increased by
DKK 255 million compared to 31 March 2021.
21
42
35
350
NIBD
31/12 21
CF operating
activities
452
CAPEX, excl.
IFRS 16
CF investing
activities
1
IFRS 16
Impact
Purchase
of treasury
shares
3
FX and other NIBD 31/3 22
Equity
Q1 Q1
Amounts in DKK million 2022 2021
1 January 1,814 1,509
Profit for the period 72 49
Actuarial gains on pension plans (35) 13
Foreign exchange adjustments (8) (6)
Non-controlling interests arising
from acquisition
- (13)
Purchase of treasury shares (35) -
Other adjustments - 1
31 March 1,808 1,553
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 6/17
Interim financial report
Q1 2022
CURRENT MARKET ENVIRONMENT
In general, the European housing market is still
expected to grow. This is supported by a structural
undersupply of housing, demographic growth, and
urbanisation.
The positive trends seen during 2021 have continued
into 2022, further supported by a relatively mild
winter, which allowed for continued high activity
across European construction industries.
However, while the underlying demand remains
strong, the current geopolitical situation has
adversely impacted growth visibility and driven
inflation rates within the construction industry to
exceptionally high levels. A continuation of such
increases in inflation rates may adversely impact
future customer demand.
In Germany, a significant lack of housing space—
especially in the larger cities—from a growing
number of smaller households provides a solid
demand outlook for both AAC and CSU.
Due to a continued lack of installation capacity and
available land, the number of issued permits have
consistently outnumbered completions of new
buildings causing backlogs among house builders to
grow considerably over the recent years.
However, current geopolitical events have caused
increased uncertainties in the German markets for
the remainder of 2022.
The continued high inflationary pressure has led to
the announcement of large sales price increases to
counter the negative impact on earnings margins,
and H+H has recently announced further sales price
increases which will come into effect in late-Q2
2022.
The integration of the Feuchtwangen factory and
preparations for the upgrade of the Wittenborn
factory caused certain production inefficiencies
which led to a relatively higher usage of raw
materials and relatively lower production in Q1
2022.
In the Nordics, economic outlook and expectations
for the construction industry are relatively more
negative due to high inflation and shortage of labour
and materials. However, activity remains high, and
the largest housebuilders are reporting very strong
forward sales for the remainder of 2022.
In both Switzerland and the Benelux countries,
uncertainties from current geopolitical events have
resulted in relatively softer outlook for economic
growth in 2022.
In the United Kingdom (“UK”), leading market
indicators point to a continued strong demand and
price growth, but the sharp rises in energy costs and
general inflation have caused a slow-down in
economic growth compared to previous
expectations.
The continued strong demand has supported the
implementation of significant sales price increases in
the UK market to counter the growing inflation.
As the prices for raw materials and energy continue
to rise, H+H has notified customers of further sales
price increases with effect from May 2022.
In line with the increasing focus on Modern Methods
of Construction, H+H sees growing interest in and
demand for element-based products. The nature of
the demand does however remain project related.
In Poland, demand remains high which has
supported the trend of significant sales price
increases for both AAC and CSU products seen over
the past 12 months.
It is expected that AAC sales prices and volumes will
stabilise in line with market demand over the coming
months due to lower activity among individual
investors.
In the CSU business, further price increases are
expected due to newly negotiated contracts coming
into effect later in the year. In addition, potential
market-driven price upsides may be seen towards
the end of the year.
CSU volumes remain supported by the Company’s
order backlog. Additional capacity was added to the
Polish CSU market during the first quarter, but there
are currently no indications that this will impact on
market pricing.
MOST MATERIAL RISKS AND
UNCERTAINTIES
For most material risk and uncertainties, please refer
to note 6 “Significant accounting estimates and
judgements” and to note 13 “Risks Management”.
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 7/17
Interim financial report
Q1 2022
EVENTS IN THE FIRST QUARTER OF 2022
On 3 March 2022, the Board of Directors of H+H
announced a share buy-back programme of up to
DKK 150 million. Please refer to note 10 “Share buy-
back programme”.
At the annual general meeting held 31 March 2022,
a reduction of the share capital by a nominal amount
of DKK 4,833,650 was approved. The share capital
decrease was registered with the Danish Business
Authorities on 5 May 2022.
Furthermore, PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab was
appointed as the company’s new auditor.
CHANGE TO EXECUTIVE BOARD
As announced in Company Announcement no. 467
of 28 February 2022, Dr. Jörg Brinkmann will be
appointed as new Chief Executive Officer, replacing
Michael T. Andersen who will leave the H+H Group.
The changes will come into effect no later than 1
October 2022, and Michael T. Andersen will remain
in his position as CEO until Dr. Jörg Brinkmann joins
the Company.
Following the changes, the Executive Board will
consist of Dr. Jörg Brinkmann and Peter Klovgaard-
Jørgensen.
EVENTS AFTER THE BALANCE SHEET DATE
After the balance sheet date, the approved
reduction of the share capital was registered at the
Danish Business Authority. Please refer to note 16
“Events after the balance sheet date”.
FINANCIAL OUTLOOK FOR 2022
The Company’s financial expectations for the full
year 2022 are upgraded as follows:
• Revenue growth before acquisitions and
divestments measured in local currencies
("organic growth") is expected to be in the range
of 15% to 20% (previously 10% to 15%).
• EBIT before special items is expected to be in the
range of DKK 440 million to DKK 520 million
(previously DKK 420 million to DKK 500 million).
ASSUMPTIONS FOR THE FINANCIAL OUTLOOK FOR
2022
Specific assumptions
The expectations for H+H’s financial performance in
2022 are based on certain specific and general
assumptions. Management believes that the most
significant of these assumptions relate to the
following items:
• Exchange rates, primarily the British pound
("GBP"), the euro ("EUR") and the Polish zloty
("PLN"), remain at end-April 2022 levels.
• Energy costs are expected to remain at end-April
2022 levels.
• Raw material costs continue to be impacted by
modest inflation from end-April levels.
General assumptions
The expectations for H+H’s financial performance
are also based on certain general assumptions.
Management believes that the most significant
assumptions underlying H+H’s expectations relate
to:
• Sales volumes and product mix
• Price competition
• Developments in the market for building
materials
• Distribution factors
• Weather conditions
• Macroeconomic and geopolitical developments
• Operational uptime at H+H’s production plants
FINANCIAL CALENDAR 2022
H1 2022 Interim Financial Report
18 Aug. 2022
Q3 2022 Interim Financial Report
10 Nov. 2022
FORWARD-LOOKING STATEMENTS
The Interim Financial 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 materially
from the expectations expressed in this document.
In no event shall 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.
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 8/17
Interim financial report
Q1 2022
STATEMENT BY THE EXECUTIVE BOARD AND THE BOARD OF DIRECTORS
The Executive Board and the Board of Directors have today discussed and approved the interim financial report for
H+H International A/S for the first quarter of 2022.
The interim financial report, which has not been audited or reviewed by the H+H’s auditors, has been prepared in
accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and Danish disclosure requirements for
the interim financial reports of listed companies.
It is our opinion that the interim financial report gives a true and fair view of H+H’s assets, liabilities, and financial
position on 31 March 2022 and of the results of H+H’s operations and its cash flows for the period 1 January to 31
March 2022.
Furthermore, it is our opinion that management’s review provides a fair account of developments in H+H’s
operations and financial conditions, the results for the period and H+H’s overall financial position, as well as a
description of the most significant risks and uncertainties that H+H faces.
Copenhagen, 6 May 2022
EXECUTIVE BOARD
Michael Troensegaard Andersen
CEO
Peter Klovgaard-Jørgensen
CFO
BOARD OF DIRECTORS
Kent Arentoft
Chairman
Stewart Antony Baseley
Volker Christmann
Kajsa von Geijer
Miguel Kohlmann
Helen MacPhee
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 9/17
Interim financial report
Q1 2022
CONDENSED INCOME STATEMENT
Q1 Q1 Full-year
Amounts in DKK million 2022 2021 2021
Revenue 874 642 3,020
Cost of goods sold (630 ) (454 ) (2,115 )
Gross profit before special items 244 188 905
Sales costs (38 ) (36 ) (143 )
Administrative costs (49 ) (46 ) (186 )
Other operating income and costs, net 2 3 15
EBITDA before special items 159 109 591
Depreciation and amortisation (49 ) (45 ) (183 )
EBIT before special items 110 64 408
Special items, net (10 ) - (31 )
EBIT 100 64 377
Financial income 1 1 4
Financial expenses (6 ) (6 ) (25 )
Profit before tax 95 59 356
Tax on profit (23 ) (10 ) (35 )
Profit for the period 72 49 321
Profit for the period attributable to:
H+H International A/S' shareholders 68 49 310
Non-controlling interest 4 0 11
Profit for the period 72 49 321
Earnings per share (EPS-Basic) 3.9 2.7 17.5
Diluted earnings per share (EPS-D) 3.9 2.7 17.5
Group
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 10/17
Interim financial report
Q1 2022
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q1 Q1 Full-year
Amounts in DKK million 2022 2021 2021
Profit for the period 72 49 321
Items that may be reclassified subsequently to profit or loss:
Foreign exchange adjustments, foreign entities (8 ) (6 ) 9
(8 ) (6 ) 9
Items that will not be reclassified subsequently to profit:
Actuarial gains and losses (41 ) 17 47
Tax on actuarial gains and losses 6 (4 ) (11 )
(35 ) 13 36
Other comprehensive income after tax (43 ) 7 45
Total comprehensive income for the period 29 56 366
Group
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 11/17
Interim financial report
Q1 2022
CONDENSED BALANCE SHEET
Group
31 March 31 Dec. 31 March
Amounts in DKK million 2022 2021 2021
ASSETS
Non-current assets
Goodwill 363 364 211
Other intangible assets 276 296 252
Property, plant and equipment 1,717 1,707 1,534
Deferred tax assets 15 17 13
Financial assets 6 6 7
Total non-current assets 2,377 2,390 2,017
Current assets
Inventories 335 321 297
Receivables 316 190 234
Cash 433 499 497
Total current assets 1,084 1,010 1,028
TOTAL ASSETS 3,461 3,400 3,045
EQUITY AND LIABILITIES
Equity
Share capital 180 180 180
Retained earnings 1,660 1,662 1,455
Other reserves (146 ) (138 ) (153 )
Equity attributable to H+H International A/S’ shareholders 1,694 1,704 1,482
Equity attributable to non-controlling interests 114 110 71
Total equity 1,808 1,814 1,553
Non-current liabilities
Pension obligations 112 85 134
Provisions 42 41 32
Deferred tax liability 127 137 127
Credit institutions 785 743 675
Lease liabilities 79 85 79
Total non-current liabilities 1,145 1,091 1,047
Current liabilities
Lease liabilities 21 21 20
Trade payables 282 251 221
Income tax 32 23 34
Provisions 2 5 6
Other payables 171 195 164
Total current liabilities 508 495 445
Total liabilities 1,653 1,586 1,492
TOTAL EQUITY AND LIABILITIES 3,461 3,400 3,045
Net interest-bearing debt 452 350 277
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 12/17
Interim financial report
Q1 2022
CONDENSED CASH FLOW STATEMENT
Q1 Q1
Amounts in DKK million 2022 2021
Operating profit (EBIT)
Financial income, received
Financial expenses, paid
(6 ) (6 )
Depreciation and amortisation
Gain and losses on sale of assets and other non-cash effects
Change in working capital
(133 ) (92 )
Change in provisions and pension contribution
(18 ) (6 )
Income tax paid
(15 ) (11 )
Operating activities (21 ) (5 )
Acquisition of property, plant and equipment and intangible assets (42 ) (27 )
Investing activities (42 ) (27 )
Change in borrowings 42 66
Change in lease liabilities (7 ) (7 )
Purchase of treasury shares (35 ) (13 )
Financing activities 0 46
Total cash flow for the period (63 ) 14
Cash and cash equivalents, opening 499 481
Foreign exchange adjustments of cash (3 ) 2
Cash and cash equivalents at 31 March 433 497
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 13/17
Interim financial report
Q1 2022
CONDENSED STATEMENT OF CHANGES IN EQUITY
Amounts in DKK million
Share
capital
Translation
reserve
Retained
earnings
H+H
shareholders
share
Non con-
trolling
interests’
share
Total
Equity at 1 January 2022 180 (138 ) 1,662 1,704 110 1,814
Total changes in equity
Profit for the period - - 68 68 4 72
Other comprehensive income - (8 ) (35 ) (43 ) - (43 )
Total comprehensive income - (8 ) 33 25 4 29
Share-based payment - - - - - -
Purchase of treasury shares - - (35 ) (35 ) - (35 )
Total changes in equity in 2022 - (8 ) (2 ) (10 ) 4 (6 )
Equity at 31 March 2022 180 (146 ) 1,660 1,694 114 1,808
Equity at 1 January 2021 180 (147 ) 1,405 1,438 71 1,509
Total changes in equity
Profit for the period - - 49 49 0 49
Other comprehensive income - (6 ) 13 7 - 7
Total comprehensive income - (6 ) 62 56 0 56
Share-based payment - - 1 1 - 1
Purchase of treasury shares - - (13 ) (13 ) - (13 )
Total changes in equity in 2021 - (6 ) 50 44 0 44
Equity at 31 March 2021 180 (153 ) 1,455 1,482 71 1,553
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 14/17
Interim financial report
Q1 2022
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 31 March 2022 has been prepared in accordance with IAS
34 "Interim Financial Reporting" as adopted by the EU and additional Danish disclosure requirements for the
interim financial reports of listed companies. The application of IAS 34 means that the disclosures are more limited
than in a complete annual report, but that the recognition and measurement principles in International Financial
Reporting Standards (IFRS) have been complied with. The interim financial report has not been reviewed by H+H’s
auditors.
The accounting policies are consistent with those applied in the 2021 annual report, which includes a full
description of the accounting policies applied.
2. Adoption of new and revised IFRSs
H+H International A/S has adopted all new or revised and amended International Financial Reporting Standards
(IFRSs) and interpretations (IFRIC) issued by IASB and endorsed by the EU effective for the financial year 2022.
3. Income statement classified by function
It is Group policy to prepare the income statement based on an adapted classification of costs by function in order
to show EBIT before special items. Depreciation and amortisation of property, plant and equipment, and intangible
assets are therefore classified by function and presented on separate lines.
The above table shows an extract of the income statement adapted to show depreciation and amortisation
classified by function.
Amounts in DKK million Q1 2022 Q1 2021
Revenue 874 642
Cost of goods sold (662) (485)
Gross profit including depreciation and amortisation 212 157
Sales cost (51) (47)
Administrative costs (53) (49)
Other operating income and costs 2 3
EBIT before special items 110 64
Special items, net (10) -
EBIT 100 64
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 39 36
Amortisation of intangible assets 10 9
Total 49 45
Depreciation, amortisation and impairment are allocated to:
Production costs 32 31
Sales costs 13 11
Administration costs 4 3
Total 49 45
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 15/17
Interim financial report
Q1 2022
4. Geographical information
When presenting information on geographical areas, information on revenue is based countries except for
“Central Western Europe” which comprise Germany, Switzerland, Denmark, Sweden, Czech Republic, Netherlands
and Belgium. Revenue for Germany for Q1 2022 amounts to DKK 265 million (2021: DKK 184 million).
5. Special items, net
Special items for the first quarter comprise restructuring costs of DKK 10 million related to the acquired AAC
factory located in Feuchtwangen in Bavaria, Germany as well as costs related to changes to Group Management.
6. Significant accounting estimates and judgements
The preparation of the consolidated financial statements requires Management to make certain estimates and
judgements concerning future events that have a material effect on the carrying amounts of assets and liabilities.
For the H+H Group, significant changes in the estimates and assumptions on which values are based may have a
material effect on the measurement of assets and liabilities, including impairment testing of goodwill and non-
current assets and net defined-benefit obligations.
With reference to note 8 “Pension obligations”, significant accounting estimates and judgements have been made
in connection to adjustment of the net defined-benefit pension obligation in the UK.
The estimates and judgements made are based on assumptions that Management assesses to be sound. However,
they are inherently uncertain and unpredictable. The assumptions may be incomplete, and unforeseen future
events or circumstances may occur.
Further details of H+H’s key accounting estimates and judgements that may affect H+H are provided in the 2021
annual report.
7. Seasonal fluctuations
The sales pattern for H+H’s products is seasonal. Sales in the second and third quarters are traditionally
significantly higher than during the rest of the year. As a part of H+H’s cost base is not directly variable with
revenue, deviations from projected sales may result in considerable fluctuations in H+H’s earnings.
Amounts in DKK million Q1 2022 Q1 2021
Central Western Europe 396 292
United Kingdom 239 196
Poland 239 154
874 642
Revenue
Amounts in DKK million Q1 2022 Q1 2021
Restructuring costs 10 -
Total 10 -
Impact of special items on EBIT
Cost of goods sold 3 -
Administrative costs 7 -
EBIT before special items 10 -
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 16/17
Interim financial report
Q1 2022
8. Pension obligations
H+H has defined-benefit pension plans in the UK, Switzerland, and Germany. The UK and Swiss pension plans are
managed by a pension fund to which payments are made, whereas the German pension plan is funded from
current earnings. H+H’s pension obligations relate predominantly to the plans in the UK.
For interim periods, H+H’s defined-benefit pension obligations are based on valuations from external actuaries
carried out at the end of prior financial year considering any subsequent movements in the obligation due to
pension costs, contributions etc. up until the reporting date. Actuarial calculations are updated or extrapolated
quarterly.
On 31 March 2022, an updated actuarial valuation of the defined benefit plan in H+H UK, based on the April 2020
valuation agreed in January 2022, showed a net asset of DKK 20 million (GBP 2.3 million), triggering IFRIC 14
recognition of future committed pension contributions of the scheme, as H+H UK do not have unconditional right
to a refund. Consequently, a net value of DKK 106 million (GBP 12.9 million) has been recognised as of 31 March
2022.
Compared to December 2021, and based on above, a value adjustment (including the effects of IFRIC 14), has been
made relating to the UK pension plan, affecting total comprehensive income negatively by DKK 35 million net of
tax.
The total pension obligation, including the recognition of future committed pension contributions, on 31 March
2022 amounts to DKK 112 million, compared to DKK 85 million on 31 December 2021. The increase is driven by
payments, interest, value adjustment and currency adjustment.
9. Financial resources and cash flow
Net interest-bearing debt, totalled DKK 452 million on 31 March 2022, corresponding to an increase of DKK 102
million since the beginning of the year. The development since the beginning of the year is primary due to a
seasonal negative working capital development of DKK 133 million, led by an increased level of trade debtors as
result of the higher activity, partly offset by increased earnings for the period.
H+H Group’s financing is a committed credit facility with Nordea Danmark, a branch of Nordea Abp, Finland, which
matures in April 2024.
H+H Group’s financing is subject to usual financial covenants, which have been fulfilled in the first quarter of 2022
and are expected to be fulfilled for the full year 2022.
10. Share buy-back programme
On 16 February 2022, the share buy-back programme initiated in 2021 was concluded with 569,853 shares
acquired at total purchase price of DKK 115 million.
On 3 March 2022, H+H International A/S initiated a share buy-back programme 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 programme is in full described in Company Announcement no. 469 of 3 March 2022.
The share buy-back programme is expected to be realised over a 12-month period, starting from 4 March 2022.
Under the share buy-back programme, H+H may repurchase shares up to a maximum amount of DKK 150 million.
In Q1 2022, a total of 182,800 shares were acquired at a total purchase price of DKK 35 million, of which DKK 17
million and DKK 18 million related to the share buy-back programmes initiated in 2021 and 2022, respectively.
DRAF
H+H International A/S • Lautrupsgade 7, 5th Floor • 2100 Copenhagen Ø • Denmark • Tel. +45 35 27 02 00 • www.HplusH.com • Company reg. no. 49 61 98 12 17/17
Interim financial report
Q1 2022
11. Share-based payment
The matching share schemes for 2020 and the performance-share-units scheme for 2021 are active and presented
in the 2021 annual report.
In March 2022, the Board of Directors of H+H International A/S implemented a new long-term incentive
programme (LTIP) being a performance share unit (PSU) programme similar to the LTIP PSU programme launched
in 2021. PSU grants under the LTIP 2022 are made as described in Company Announcement no. 476.
In the first quarter of 2022, an expense of DKK 2 million was recognised under staff costs compared to DKK 1
million in the same period in 2021.
12. Tax on profit
13. Risk Management
H+H’s principal risks and the external factors that may affect H+H are provided in the 2021 annual report. These
are unchanged for the first quarter of 2022.
14. Related parties
Related parties of H+H with significant influence include the Board of Directors and the Executive Board of this
company and their close family members. Related parties also include companies in which the aforementioned
persons have control or significant interests.
Transactions with related parties
H+H did not enter into any significant transactions with members of the Board of Directors and the Executive
Board, except for compensation and benefits received as a result of their membership of the Board of Directors,
employment with H+H or shareholdings in H+H.
15. Business combinations
Preliminary purchase price allocations for Feuchtwangen and DOMAPOR is unchanged compared to what is
disclosed in note 25 in the 2021 annual report.
16. Events after the balance sheet date
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 a 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 cancellation of 483,365 shares of nominally DKK
10.00 each, was registered at the Danish Business Authority.
Other than above, no events have occurred after the balance sheet date that will have a material effect on the
parent company’s or the H+H Group’s financial position.
Amounts in DKK million Q1 2022 Q1 2021
Current tax 24 12
Movement in deferred tax (1) (2)
Tax on profit 23 10