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Q3 2022 Progress Financial Report: The high inflation environment continued to drive price increases, while market demand began to subside.

Q3 2022 Progress Financial Report: The high inflation environment continued to drive price increases, while market demand began to subside.

H + H International A / S

H + H International AS Q 3 2022 Interim Financial Report

The Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or the “Company”) has approved the interim financial report for the third quarter (“Q3 2022”) and the first quarter of 2022 (“Third Quarter 2022”).

CEO, Jörg Brinkmann, Quote

I am very excited to join H+H and to be part of this highly committed organization. I am happy to see the benefits of an agile business model and how H+H is able to offset persistent inflationary pressure by increasing sales prices and taking advantage of the factory network that has been built up over recent years. Our focus will remain on serving customers across our region and delivering strong operational performance while not losing sight of our long-term commitments. The current business environment is challenging but at the same time it also represents a great potential for H + H positioning for a successful future and realizing the full potential of the company.

Performance Achievements for Q3 2022 ( .)3 2021)

  • Revenue increased by 13% to DKK 920 million (DKK 811 million).

  • Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) was 7% (13%).

  • Gross profit was DKK 254 million (DKK 250 million), which equates to a gross margin of 28% (31%).

  • EBIT before special items was DKK 110 million (125 million DKK), which is equivalent to EBIT margin before special items of 12% (15%).

  • Net profit of 82 million DKK (88 million DKK).

  • Free cash flow was 36 million DKK (5 million DKK).

  • The financial leverage amounted to 0.5 times the EBITDA at the end of the third quarter of 2022 (0.3 times the EBITDA at the end of the third quarter of 2021).

Financial Forecasts for 2022

The full 2022 financial outlook has been narrowed down:

  • Revenue growth before acquisitions and divestitures measured in local currencies (“organic growth”) is expected to be around 15% (previously 15% to 20%).

  • EBIT before special items is expected to be in the range of DKK 440 million to DKK 470 million (previously DKK 440 million to DKK 520 million).

H+H’s financial performance projections in 2022 are based on some specific and general assumptions. Please refer to the interim financial report for the third quarter of 2022 for more information on the specific and general assumptions.

Financial indicators for the period from January 1, 2022 to September 30, 2022

million Danish kroner

Third Quarter 2022

Third Quarter 2021

First Quarter – Third Quarter 2022

First Quarter – Third Quarter 2021

Sales volume (thousand cubic meters)

1,019

1,176

3,288

3,328

he won

920

811

2794

2,289

organic growth

7%

13%

16%

14%

Gross margin before special items

28%

31%

29%

30%

EBITDA before special items

160

171

546

452

EBIT before special items

110

125

397

314

EBIT margin before special items

12%

15th%

14%

14%

Special Items

(9)

(4)

(28)

(4)

Return on invested capital (ROIC)

24%

21%

24%

21%

free cash flow

36

5

138

145

NIBD / EBITDA before the ratio of special items

0.5x

0.3x

0.5x

0.3x

Q1 – Q3 2022 Interim Financial Report Conference Call

In connection with the release of the interim financial report for the first quarter of the third quarter of 2022, a conference call for investors and analysts is scheduled for Thursday, November 10, 2022, at 10:00 AM CEST. During the call, Chief Executive Officer (“CEO”) Jörg Brinkmann and Chief Financial Officer (“CFO”) Peter Klofgaard Jorgensen will present the interim financial report. The presentation will be followed by a question and answer session. Investors and analysts are invited to participate by phone:

DK: +45 78 15 01 07
United Kingdom: +44 333300 9263
United States: +1646722 4904

  • Other participants can follow the conference call via live webcast here.

  • The conference call presentation slides will be made available previously here.

  • A replay of the conference call will then be available on the H+H Investor Relations website here.

For more information, please contact:

Niklas Boe Christensen
Head of Investor Relations and Treasury
+45 24 48 03 67
nbk@hplush.com

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