Interim financial report for H1 2020, including reinstated 2020 outlook

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Corporate News No. 395, 2020 "data-reactid =" 12 ">Corporate News No. 395, 2020

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""The current market situation has shown how strong the geographic presence of H + H today is more diversified with three core markets in order to better absorb unexpected market developments such as Covid-19," says CEO Michael T. Andersen. “The UK market was badly affected in the second quarter from the end of March, while the other markets contributed to positive organic growth despite Covid-19. Our results for the second quarter are positively supported by strict pricing strategies in Germany and Poland and a strong operating cash flow. " "data-reactid =" 13 ">"The current market situation has shown how strong the geographic presence of H + H today is more diversified with three core markets in order to better absorb unexpected market developments such as Covid-19," says CEO Michael T. Andersen. “The UK market was badly affected in the second quarter from the end of March, while the other markets contributed to positive organic growth despite Covid-19. Our results for the second quarter are positively supported by strict pricing strategies in Germany and Poland and a strong operating cash flow. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Financial highlights for the period January 1 to June 30, 2020"data-reactid =" 14 ">Financial highlights for the period January 1 to June 30, 2020

DKK million Q2 2020 Q2 2019 H1 2020 H1 2019
revenue 596 770 1,300 1,436
Organic growth (22)% 7% (11)% 13%
Organic growth excluding the UK market 2% 5% 7% 8th%
EBITDA before special items 104 156 234 253
EBIT before special items 57 114 142 169
EBIT margin before special items 10% fifteen% 11% 12%
NIBD / EBITDA ratio before special item ratio 0.8 1.2 0.8 1.2
Special articles 0 0 0 0
Free cash flow 108 86 30th 39

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  • After measures by the UK government on March 23, 2020, distribution centers and construction sites were closed in the UK
  • H + H stopped production in the UK at the beginning of April because stocks were high and demand was limited. Government support programs for vacation workers were used during this period
  • In early May, UK home builders and contractors began a gradual reopening of construction sites and distribution centers
  • All Housebuilders distribution centers and dealers were opened in early June, and H + H resumed production in late June to meet rising demand. All three factories were up and running at the beginning of August
  • H + H UK was hit hard in the second quarter of 2020 and was only used to a very limited extent in April. Due to the low level, sales volumes increased throughout the quarter and continued the trend in July, showing a rebound in the market. From July onwards, most construction sites will be reported as open and productivity will increase as the distance rules decrease
  • The German market developed better than originally expected and above the previous year and continued its performance in July despite Covid-19
  • The Polish market developed slightly below an exceptionally high level of activity in 2019, due to increasing competition in the CSU market, but this was partially offset by good performance at AAC

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Outlook for 2020 & nbsp; & nbsp; & nbsp; "data-reactid =" 34 ">Outlook for 2020

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Because of the recovery and clarity of the UK market, H + leads H the outlook for 2020 again.& nbsp; Although volumes are partially returning in the UK market, visibility remains limited in terms of volumes for the second half of 2020. The group assumes that the other markets will weaken as expected in the second half of the year. A Covid-19 resurgence is not expected to have a nationwide impact on our markets. As the low visibility due to covid-19 persists, the range for expected revenue is larger than under normal circumstances. & nbsp; "data-reactid =" 35 "> Due to the recovery and clarity of the British market, H + H is reintroducing the outlook for 2020. Although volumes are partially returning in the UK market, visibility remains limited in terms of volumes for the second half of 2020. As expected, the group expects the other markets to weaken in the second half of the year. A Covid-19 resurgence is not expected to have a nationwide impact on our markets. As the low visibility due to covid-19 persists, the range for expected revenue is larger than under normal circumstances.

  • Revenue growth before acquisitions, measured in local currencies, is expected to be in the range of -16% to -8%
  • EBIT before special items is expected to be between DKK 250 million and DKK 300 million
  • Investments excluding acquisitions, divestments and IFRS 16 effect are expected to be between 100 and 130 million DKK

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Conference call for investors and analysts"data-reactid =" 40 ">Conference call for investors and analysts

H + H International A / S is holding a conference call for investors and analysts on August 14, 2020 at 10:00 a.m. CEST.

Information on attending the conference call is provided below.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The conference call is available at: & nbsp;https://hplush.eventcdn.net/2020q2/"data-reactid =" 43 "> The conference call is available at: https://hplush.eventcdn.net/2020q2/

Investors and analysts are invited to participate by telephone

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "DK: +4578150107
UK +443333009262
US: +18335268395 "data-reactid =" 45 "> DK: +4578150107
UK +443333009262
US: +18335268395

For more information please contact:

CFO Peter Klovgaard-Jørgensen or IR Manager Cristina Rønde Hefting, by phone on +45 35 27 02 00.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The main activity of H + H is the production and sale of wall building materials with a turnover of 2.8 billion DKK in 2019. The main product lines are air-concrete blocks and calcium silicate units, which are used for the segment of new residential buildings. H + H has 29 factories in Northern and Central Europe with a total production of more than 4 million cubic meters of products per year and occupies a leading position in most markets. H + H employs more than 1,600 people and is listed on Nasdaq Copenhagen."data-reactid =" 49 ">The main activity of H + H is the production and sale of wall building materials with a turnover of 2.8 billion DKK in 2019. The main product lines are air-concrete blocks and calcium silicate units, which are used for the segment of new residential buildings. H + H has 29 factories in Northern and Central Europe with a total production of more than 4 million cubic meters of products per year and occupies a leading position in most markets. H + H employs more than 1,600 people and is listed on Nasdaq Copenhagen.

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