Slides
Page 1
H + H International A / S H1 2026 Financial Results 30 Confidentia For Inte H + H PARTNERS IN WALL BUILDING
Page 2
This presentation 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 International A/S, may cause actual developments and results to differ materially from the expectations expressed in this presentation. In no event shall H+H International A/S 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 presentation. Forward-looking statements H+H H1 2026 FINANCIAL RESULTS 2
Page 3
Q2 2026 financial highlights Selected financial figures Figures in DKKm unless otherwise stated. Q2 2025 figures in brackets Organic growth 6% (0%) EBIT margin(1) 6% (3%) Gross margin(1) 22% (22%) EBITDA margin(1) 11% (10%) Financial gearing(1) 3.4x (2.6x) Free cash flow 117 (-52) (1) Before special items. 1. Normalization from a weather-impacted Q1 driven by a particular strong market in Poland, taking EBIT bsi to a breakeven for the first half of 2026. 2. Outlook for the UK market has become more cautious. Impact from new government’s housing agenda will be monitored closely. 3. The strategic changes in Germany are delivering the expected improvements, while the market is showing signs of a gradual recovery. 4. Continuous strong focus on cash flow and balance sheet management. 5. Full-year outlook maintained. Q2 key takeaways H+H H1 2026 FINANCIAL RESULTS 3
Page 4
▪ Building permits continued to grow, and is 19%(2) up year-on-year, supporting visibility and confirming a healthy pipeline of projects. ▪ Market conditions are supported by a robust macroeconomic environment. ▪ The outlook remains positive, albeit with a moderating momentum rather than the rapid growth seen in previous periods. Market developments in Q2 2026 Market development -50% -25% 0% 25% 50% 0 5 10 15 20 25 30 35 40 2022 2023 2024 2025 2026 Building Permits in '000 3m rolling y/y (%) Key financial highlights (DKKm) ▪ Poland normalized from the weak Q1. ▪ Both revenue and earnings are ahead of last year. ▪ The ramp-up of the upgraded plant in Puławy plant is now complete. H+H Poland 225 236 209 27% 28% 25% 15% 25% -10 0 10 20 30 40 0 100 200 300 400 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 182 263 Revenue EBITDA Margin(1) H+H H1 2026 FINANCIAL RESULTS 4 Poland (1) Before special items. (2) Likely pull-forward effect from upcoming planning reform.
Page 5
-60% -40% -20% 0% 20% 40% 60% 0 5 10 15 20 25 30 2022 2023 2024 2025 2026 ▪ Activity higher than Q1, but not same recovery profile as seen in the other markets. ▪ Private housing demand continued to be constrained by affordability pressures, cautious consumer confidence and mortgage rates. ▪ New government reinforces commitment to housebuilding through c.£40bn Affordable Homes Program targeting ~200k social and affordable homes over 10 years. H+H UK ▪ Sales volumes are lower than last year. ▪ The cost base has been adjusted to reflect a more cautious market outlook. ▪ Medium- to long-term outlook remains and H+H has capacity available to support the market rebound. Market developments in Q2 2026 Registrations in '000 3m rolling y/y (%) 236 247 183 227 11% 14% 13% 3% 12% -5 0 5 10 15 0 100 200 300 400 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 161 Revenue EBITDA Margin(1) Market development Key financial highlights (DKKm) H+H H1 2026 FINANCIAL RESULTS 5 UK (1) Before special items.
Page 6
-40% -20% 0% 20% 40% 0 5 10 15 20 25 30 35 2022 2023 2024 2025 2026 ▪ Building permits in Germany has recovered from the cyclical lows of recent years and is 17% year- on-year, indicating improving market sentiment. ▪ However, construction activity in Germany remains subdued, with c.185k residential completions expected in 2026, highlighting the significant gap between housing supply and demand. ▪ Structural housing undersupply and improving permit trends suggest that the market has moved past the trough. ▪ Markets in Denmark and The Netherlands see positive trends while Switzerland remains stable. H+H CWE ▪ Business is back-to-normal following a Q1 that was severely impacted by weather. ▪ The strategic changes are well underway, and new ways of working are running to schedule. Market developments in Q2 2026 Building Permits in '000 3m rolling y/y (%) 255 217 262 1% 4% 3% -8 -6 -4 -2 0 2 4 0 100 200 300 400 Q2 2025 Q3 2025 Q4 2025 -8% Q1 2026 Q2 2026 258 219 -1% Revenue EBITDA Margin(1) Market development Germany Key financial highlights (DKKm) CWE H+H H1 2026 FINANCIAL RESULTS 6 Central Western Europe (1) Before special items.
Page 7
Update on strategic focus areas 7 | ANNUAL REPORT 2025 117 131 135 FY 24 FY26 YTDFY 25 − Since the launch of HOME we are continuously improving our plant performance. − Q2 2026 was the Group‘s best quarter at 137 net hrs. − After successful ramp-up of Pulawy upgrade, net hours already above previous level. HOME deliveringimprovements DE+ focus Operational excellence is key to our business success New profit center structure enables focus on local markets AACCSU Assets for sale − New profit center leaders driving market penetration. − Topline improvement and margin stabilization. − More data driven approach to sales. − Better match between sales and production (“Sweetspot”). Savings from restructuring delivered − DKK 40 million annualized runrate savings on fixed costs. − DKK 30 million lower impairments. Cash-in from asset sale program − DKK 49m cash proceeds year to date. H+H H1 2026 FINANCIAL RESULTS 7
Page 8
258 255 219 217 262 225 236 209 182 263 236 247 183 161 227 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 719 738 611 560 752 +5% ▪ Organic growth was 6% for the quarter and -5% for the first half of 2026. ▪ Prices are higher than last year, and volumes are up for the quarter. This is partly offset by country mix effects. ▪ Sales volumes increase overall. This was solely driven by Poland, partly offset by UK and CWE that saw negative sales volume development. ▪ For CWE the sales volume was in line with expectations, and the UK volume is reflecting the changed sentiment in the market. UK Poland CWE Volumes by quarter (Thousand m3) Revenue by quarter DKKm. Revenue growth (%) 763 791 673 594 795 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 +4% Expected rebound vs. Q1 delivered and Q2 ahead of last year H+H H1 2026 FINANCIAL RESULTS 8
Page 9
10 52 28 9 60 67 23 65 27 35 -18 28 -20 -10 0 10 20 30 40 50 60 70 80 90 100 110 120 2 Q2 2025 Q3 2025 -2 Q4 2025 5 Q1 2026 Q2 2026 ▪ The quarter delivered gross margin in line with last year, mainly driven by higher volumes. ▪ Excess energy costs are being offset. UK Poland CWE 155 179 135 73 165 0 5 10 15 20 25 30 0 50 100 150 200 250 300 350 22% Q2 2025 24% Q3 2025 22% Q4 2025 13% Q1 2026 22% Q2 2026 Gross Profit (DKKm) Gross Margin (%) ▪ Cost adjustments in the UK done to counter the lower revenue. ▪ In Poland, higher revenue is driven by volume, leading to higher EBITDA. ▪ CWE delivering EBITDA improvements from restructuring effects. EBITDA per reportable segment (DKKm) (1) Gross margin in line with last year with higher revenue driving profitability H+H H1 2026 FINANCIAL RESULTS 9 Gross profit and margin development (1) Before special items and excluding HQ costs.
Page 10
▪ Cash-flow generation from underlying business supported by net-working capital improvement drives operating cash flow. ▪ This is further supported by asset sale of DKK 49 million in Q2 and limited CAPEX spend. ▪ Net interest-bearing debt amounted to DKK 825 million as of 30 June 2026. ▪ Net debt-to-EBITDA ratio of 3.4 against 4.1 times at the end of Q1 2026. 85 107 117 31 49 EBITDA Changes in NWC (10) Payment of restructering costs 1 Other non- cash adjustments Cash flow from operations (23) Interest and tax (16) CAPEX Cash flow asset sales Free cash flow Q2 2026 free cash flow development (DKKm)Key takeaways Operating cash flow supported by asset sale H+H H1 2026 FINANCIAL RESULTS 10
Page 11
Reiterating the outlook for 2026 EBIT before special items (DKKm) 50 - 100 Organic growth -5% to 0% Key assumptions for the financial outlook for 2026 ▪ Winter weather in Q1 has negatively affected EBIT before special items by DKK 70 million compared to last year. ▪ Expected benefits of DKK 40 million from German restructuring initiated in 2025. ▪ CAPEX for 2026 is expected to be around DKK 100 million. ▪ Free cash flow expected to be positive including cash flow from asset sales. ▪ The outlook assumes no major changes to macroeconomic or geopolitical conditions, and FX assumptions are based on August 2026 actuals combined with forward rates for the remaining part of the year. H+H H1 2026 FINANCIAL RESULTS 11
Page 12
Key takeaways 1. Normalization from a weather-impacted Q1 driven by a particular strong market in Poland, taking EBIT bsi to a breakeven for the first half of 2026. 2. Outlook for the UK market has become more cautious. Impact from new government’s housing agenda will be monitored closely. 3. The strategic changes in Germany are delivering the expected improvements, while the market is showing signs of a gradual recovery. 4. Continuous strong focus on cash flow and balance sheet management. 5. Full-year outlook maintained. H+H H1 2026 FINANCIAL RESULTS 12
Page 13
Q&A H+H H1 2026 FINANCIAL RESULTS 13