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 1/20
H+H International A/S
Lautrupsgade 7, 5.
2100 Copenhagen Ø
Denmark
Telephone +45 35 27 02 00
info@HplusH.com
www.HplusH.com
CVR No. 49 61 98 12
LEI: 213800GJODT6FV8QM841
Date:
17 November 2023
Today, the Board of Directors of H+H International A/S (hereinafter referred to as “H+H” or “the Company”) has
adopted the Interim Financial Report for the third quarter (“Q3 2023”) and the first nine months of 2023 (“Q1-Q3
2023”).
CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE
“Our quarterly result is in line with our expectations. Our focus on the business improvement program continues
and I am pleased to see first effects coming through, however, we are also impacted by higher energy costs. In light
of expected low building activity in the mid-term we have decided to pause production in four factories across our
footprint. This will allow us to increase efficiency of the remaining plants, while maintaining a flexible approach to
restarting production when market conditions improve. It will also contribute to reduce our stock levels in line with
our cash management priorities.” says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q3 2023 (Q3 2022)
• Sales volume decreased by 27% to 740 thousand cubic metres (1,018 thousand cubic metres)
• Revenue growth measured in local currencies (“organic growth”) was negative 24% (positive 7%)
• Gross profit before special items was DKK 138 million (DKK 254 million), corresponding to a gross margin of
20% (23%).
• EBITDA before special items was DKK 53 million (DKK 160 million), corresponding to an EBITDA margin before
special items of 8% (17%).
• EBIT before special items was DKK 13 million (DKK 110 million), corresponding to an EBIT margin before special
items of 2% (12%)
• Free cash flow was DKK 54 million (DKK 36 million)
• Financial gearing was 2.6 times EBITDA at the end of Q3 2023 (0.5 times EBITDA at the end of Q3 2022)
Company Announcement No. 546, 2023
Interim Financial Report Q3 2023: H+H narrows financial outlook for full-year 2023 and
taking further steps to align production with current demand
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 2/20
Interim financial report
Q1-Q3 2023
FINANCIAL HIGHLIGHTS FOR THE PERIOD
DKK million
Q3 2023
Q3 2022
Q1-Q3 2023
Q1-Q3 2022
Sales volume (thousand cubic metres)
740
1,018
2,097
3,288
Revenue
699
920
2,071
2,794
Organic growth
(24)%
7%
(25)%
16%
Gross margin before special items
20%
28%
23%
29%
EBITDA before special items
53
160
212
546
EBIT before special items
13
110
72
397
EBIT margin before special items
2%
12%
3%
14%
Special items
(32)
(9)
(206)
(28)
Return on Invested Capital (ROIC)
(4)%
24%
(4)%
24%
NIBD/EBITDA before special items ratio
2.6x
0.5x
2.6x
0.5x
Free cash flow
54
36
(323)
138
FINANCIAL OUTLOOK FOR 2023
• Revenue growth measured in local currencies is expected to be negative around -25% (previously -20% to
-25%)
• EBIT before special items is expected to be in the range of DKK 30 million to DKK 80 million (previously DKK 30
to 100 million)
The financial outlook for 2023 is based on the following specific assumptions:
• Sales volumes expected to decrease around -35%
• Exchange rates, primarily GBP, EUR and PLN remain at mid-November 2023 levels.
Q3 2023 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the Q3 2023 Interim Financial Report, a conference call for investors and analysts
is scheduled for Friday 17 November 2023, at 10:00 a.m. CEST. On the call, Chief Executive Officer (“CEO”) Jörg
Brinkmann and Chief Financial Officer (“CFO”) Peter Klovgaard-Jørgensen will present the Q3 interim financial
report. The presentation will be followed by a Q&A session. Investors and analysts are invited to participate via
phone (PIN code: 275042):
DK: +45 78 76 84 90
UK: +44 203 769 6819
US: +1 646 787 0157
• Other participants can follow the conference call via live webcast here.
• The presentation slides for the conference call will be made available beforehand here.
• After the conference call, you can access the replay and transcript 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 2022 of DKK 3.6 billion. The main
product lines are aircrete blocks and calcium silicate units used for the residential new building segment. H+H has factories in
Northern and Central Europe and has a leading position. H+H 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 3/20
Interim financial report
Q1-Q3 2023
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
EBITDA before special items 53 160 212 546 657
EBITDA 23 151 105 518 615
EBIT before special items 13 110 72 397 455
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 4/20
Interim financial report
Q1-Q3 2023
MANAGEMENT’S REVIEW
INCOME STATEMENT FOR THE THIRD QUARTER OF
2023
Revenue
Total revenue decreased by 24% to DKK 699 million
in Q3 2023 compared to DKK 920 million in Q3 2022.
Revenue growth measured in local currencies
(“organic growth”) was negative 24% in Q3 2023
compared to positive 7% in Q3 2022.
The decline in revenue is driven by reduced market
demand across all regions slightly offset by price
increases.
Revenue in the CWE region decreased by 26% to DKK
299 million compared to DKK 406 million in Q3 2022
driven by lower sales volumes. Organic growth in the
region was negative 27% as a result of lower sales
volumes for both AAC and CSU.
Revenue in the United Kingdom decreased by 24% to
DKK 226 million compared to DKK 296 million in Q3
2022. This decline was driven by negative organic
growth of 22%, due to decreased demand, offset by
higher sales prices.
Revenue in Poland decreased by 20% to DKK 174
million compared to DKK 218 million in Q3 2022.
Organic growth was negative 21% driven by
decreasing demand.
Of the total revenue in Q3 2023 of DKK 699 million,
AAC and CSU constituted 74% and 26%, respectively.
Production cost
Led by lower production volumes but partly offset by
high gas prices, production cost decreased by DKK
105 million to DKK 561 million in Q3 2023 compared
to DKK 666 million in Q3 2022.
In the second and third quarter of 2023, H+H made
adjustments to its production capacity in response to
reduced market demand. For further details, please
see Note 8 and Note 9. Also, production costs are
impacted by gas hedges entered in summer 2022.
These hedges are currently unfavourable to current
market prices and impacted production costs for the
quarter by DKK 32 million.
Gross profit before special items
Gross profit amounted to DKK 138 million compared
to DKK 254 million in Q3 2022, corresponding to
gross margins of 20% and 28%, respectively.
The lower gross profit margin is driven by indirect
production cost spread over lower volumes as well
as increased energy costs..
EBITDA before special items
EBITDA before special items amounted to DKK 53
million compared to DKK 160 million in Q3 2022,
corresponding to EBITDA before special items
margins of 8% and 17%, respectively. Adjusted for
the unfavourable gas hedges EBTIDA before special
items would be DKK 85 million corresponding to a
margin of 12%.
Depreciation and amortisation
Depreciation and amortisation in Q3 2023 amounted
to DKK 40 million compared to DKK 50 million in Q3
2022. The decrease in depreciations is primarily
caused by the closure of factories in 2023, but it is
also influenced by reduced CAPEX investments and a
review of the useful lives of machinery and
equipment.
EBIT before special items
EBIT before special items amounted to DKK 13
million in Q3 2023, compared to DKK 110 million in
Q3 2022, corresponding to EBIT margins before
special items of 2% and 12%, respectively. Adjusted
for the gas hedges EBIT before special items would
be DKK 45 million corresponding to a margin of 6%.
Special items
Special items of DKK 32 million for Q3 2023 mainly
relates to restructuring costs in relation to
adjustments of our production capacity and
production network optimisation. Additionally, gas
hedges that were entered in the summer 2022,
when matched with lower volumes, led to the sale of
unused gas. In the quarter, the unfavourable part of
the gas hedges amounted to DKK 14 million. Please
refer to Note 9 and Note 11 for more information
about special items for the period.
Net financials
Net financials for Q3 amounts to an expense of DKK
16 million in Q3 2023, compared to an expense of
Revenue, external
Amounts in DKK million 2023 2022 2023 2022
Central Western Europe 299 406 999 1,242
United Kingdom 226 296 594 816
Poland 174 218 478 736
Total 699 920 2,071 2,794
Q3
Q1-Q3
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 5/20
Interim financial report
Q1-Q3 2023
DKK 3 million in Q3 2022. The development is mainly
driven by increasing debt position and increased
market interest rate.
Profit before tax
Profit before tax amounted to negative DKK 35
million in Q3 2023, compared to positive DKK 98
million in Q3 2022.
Tax
Tax for the period amounted to a net income of DKK
6 million compared to a net expense of DKK 16
million in Q3 2022. Please refer to Note 15 for more
information about tax for the period.
Net profit
Net profit for the period amounted to a loss of DKK
29 million compared to a profit of DKK 82 million in
Q3 2022.
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 30 million
and profit to non-controlling interests by DKK 1
million compared to a profit of DKK 78 million and
DKK 4 million, respectively, for Q3 2022.
Comprehensive income
Other comprehensive income for Q3 2023 amounted
to a profit of DKK 2 million compared to a loss of DKK
28 million in Q3 2022. The year-on-year
development was mainly driven by a development in
fair value adjustments of gas hedges offset by
negative foreign exchange rates.
INCOME STATEMENT FOR THE FIRST NINE MONTHS
OF 2023
Revenue
Total revenue for the first nine months of 2023
decreased by 26% to DKK 2,071 million compared to
DKK 2,794 million in the first nine months of 2022.
Organic growth was negative 25% in the first nine
months of 2023 compared to positive 16% for the
first nine months of 2022. Of the total revenue of
DKK 2,071 million, AAC and CSU constituted of 70%
and 30%, respectively.
Gross profit before special items
Gross profit in the first nine months of 2023
decreased by 43% to DKK 470 million compared to
DKK 818 million in 2022, corresponding to gross
margins of 23% and 29%, respectively. The decrease
in gross profit margin is driven by overhead costs
spread over lower volumes and increased energy
costs.
EBITDA before special items
EBITDA before special items in the first nine months
of 2023 decreased by 61% to DKK 212 million
compared to DKK 546 million in 2022, corresponding
to EBITDA margins of 10% and 20%, respectively.
Adjusted for the unfavourable gas hedges EBTIDA
before special items would be DKK 244 million
corresponding to a margin of 12%.
Depreciation and amortisation
Depreciation and amortisation in the first nine
months of 2023 amounted to DKK 140 million
compared to DKK 149 million in first nine months of
2022.
EBIT before special items
EBIT for the first nine months of 2023 decreased by
DKK 325 million compared to the first nine months
of 2022, corresponding to EBIT margins of 3% and
14%, respectively. Adjusted for the gas hedges EBIT
before special items would be DKK 104 million
corresponding to a margin of 5%.
Special items
Special items of DKK 206 million for the first nine
months in 2023 mainly comprise of impairment of
non-current assets, restructuring costs associated to
the strategic adjustment of our production capacity,
including close down of certain factories, and the
ineffective part of gas hedges which is DKK 36 million
for the first nine months.
Please refer to Note 9 and Note 11 for more
information about special items for the period.
Net financials
Net financials amounted to an expense of DKK 38
million in first nine months 2023, compared to an
expense of DKK 12 million in first nine months of
2022. The development is mainly driven by increase
in interest expenses from an increased debt position
and interest rates.
Profit before tax
Profit before tax for the first nine months of 2023
amounted to a loss of DKK 172 million, compared to
positive DKK 357 million in first nine months of 2022.
Tax
Tax for the period amounted to a net income of DKK
35 million compared to a net expense of DKK 74
million in first nine months of 2022. Please refer to
Note 15 for more information about tax for the
period.
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 6/20
Interim financial report
Q1-Q3 2023
Net profit
Profit in the first nine months of 2023 decreased by
DKK 420 million to a loss of DKK 137 million,
compared to positive DKK 283 million in 2022.
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 138 million
and a profit to non-controlling interest by DKK 1
million compared to a profit of DKK 275 million and
DKK 8 million, respectively, for the first nine months
of 2022.
Comprehensive income
Other comprehensive income for the first nine
months of 2023 was negative DKK 37 million
compared to negative DKK 79 million for the first
nine months of 2022, mainly driven by a loss in fair
value adjustments of derivative financial instruments
of DKK 17 million offset by a positive development in
foreign exchange rates of DKK 59 million.
CASH FLOW
Operating activities
Cash flow from operating activities amounted to
positive DKK 87 million in Q3 2023 compared to DKK
101 million in Q3 2022.
Cash flow from operating activities in the first nine
months of 2023 was negative DKK 208 million
against positive DKK 287 million in 2022.
Development in operating cash flow is led by lower
earnings for the period and a negative net working
capital development driven by stock build in Q1 due
to capacity adjustments and inflation.
Investing activities
Cash flow from investing activities in Q3 2023
amounted to negative DKK 33 million compared to
negative DKK 65 million in Q3 2022.
Cash flow from investing activities in the first nine
months of 2023 was negative DKK 115 million,
compared to negative DKK 149 million in the first
nine months of 2022.
Financing activities
Cash flow from financing activities amounted to
positive DKK 16 million in the third quarter of 2023
compared to negative DKK 22 million in Q3 2022.
Cash flow from financing activities amounted to
positive DKK 391 million in first nine months of 2023
compared to negative DKK 92 million in 2022.
The year-on-year increase, both for the quarter and
the first 9 months, was mainly driven by draw on
credit facilities due to the development in earnings
and working capital, and the purchase of treasury
shares.
BALANCE SHEET
On 30 September 2023, the balance sheet total
amounted to DKK 3,972 million compared to DKK
3,705 million on 30 September 2022 mainly driven
by an increase in inventories of DKK 246 million.
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 844
million as of 30 September 2023 corresponding to an
increase of DKK 352 million since 31 December 2022
and a decrease of DKK 31 million since 30 June 2023.
The increase in net interest-bearing debt since the
beginning of the year was primarily driven by
negative net working capital development in Q1 and
cash flows from operations during the period.
On 30 September 2023, the Company’s financial
gearing last twelve months was 2.6 times net
interest-bearing debt to EBITDA.
The Company’s net interest-bearing debt excluding
leasing totalled DKK 0.8 billion on 30 September
2023, corresponding to an unused committed bank
facility of DKK 0.2 billion.
Equity
The consolidated equity decreased by DKK 178
million compared to 31 December 2022 and
decreased by DKK 108 million compared to 30
September 2022.
Equity
Q1-Q3 Q1-Q3
Amounts in DKK million 2023 2022
1 January 1,938 1,814
Profit for the period (137) 283
Actuarial gains/losses on pension
plans
(41) (41)
Value adjustments of derivative
financial instruments
(17) -
Foreign exchange adjustments 21 (38)
Purchase of treasury shares (2) (132)
Adjustment to non-controlling
interests arising from acquisition
- (22)
Share based payment (2) 4
30 September 1,760 1,868
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 7/20
Interim financial report
Q1-Q3 2023
CURRENT BUSINESS DEVELOPMENT
Challenging market conditions persist
In the third quarter of 2023, building activity, as
anticipated, continued to be affected by high
interest rates impacting future homeowners, which
led to a decrease in the issuance of permits and
delays in starts. In Q3 2023, our sales volumes were
27% lower compared to the same period in the
previous year, and the first nine months declined
36% compared to the previous year.
In Germany, the number of building permits issued
declined by 33% from January to August 2023,
compared to the previous year and high cost for
housing have resulted in a reduction of new
mortgage loans for private investors. Though we
have managed to maintain relatively stable sales
prices throughout the quarter project prices have
decreased slightly. However increasing list prices for
the upcoming year has recently been announced.
In the quarter, we achieved -27% organic growth and
a negative 17% organic growth for the first nine
months compared to last year in the CWE region.
In the UK, the number of new home registrations fell
by 53% in the third quarter of 2023 compared to the
same period last year. We have maintained sales
prices which resulted in negative 22% organic
growth in Q3 and negative 26% for the first nine
months as we benefit from foundation sales and
newly onboarded customers.
In Poland, the number of building permits decreased
by 27% from January to August 2023 compared to
last year mainly driven by a decrease in developer
projects. On the other hand, there has been
increased demand in mortgages as initial data
indicate a strong reception among first-time Polish
borrowers for the newly introduced 2% safe credit
loan. Although the market conditions in Poland are
highly competitive, pricing has remained relatively
stable overall.
In Poland, we delivered negative 21% organic growth
in Q3 and negative 40% for the first nine months.
Taking further capacity out of our network
Efficiency of our plant network continues to be a key
focus area. We have during the year taken measures
to consolidate plants and redirect production to
larger plants, resulting in cost savings through
economies of scale. Earlier in the year, we
announced closing of five of our previous 32 plants
and we have reduced our workforce by 20%.
Importantly, these closures will not compromise our
overall network capacity as continuous improvement
in existing plants will allow for a more efficient
supply in the future and better service for our
customers.
As a part of this commitment and given the
challenging economic conditions our markets are
currently faced with, we have decided to take
further capacity out of our network and pause
production in three AAC factories and one CSU
factory. This will allow us to reduce our stock in line
with our cash management priorities and increase
efficiency of the remaining plants while maintaining
a flexible approach to restarting production when
market conditions improve.
In Germany, a plant in Northern Germany has been
temporarily closed with regional supply now being
handled by the two other plants in the area.
Additionally, a factory in Southern Germany, has
been temporary closed and supply will be
transferred to the two other factories in the region.
In the UK, one of our factories in the Northern UK
will temporary close as production capabilities at our
other factories combined with inventory holds
sufficient capacity in the current market
environment.
In Poland, a CSU factory in the South will pause
production by the end of the year, and supply will
shift to the nearby plants.
In the coming period, we plan to operate with the
expectation that demand will not come back quickly
and as a result, we aim to align our production with
existing sales levels and effectively manage our
inventory.
The cost-savings initiatives also include
rationalisation of sales and administration resources
primarily in the CWE region, driven by further
centralisation of administrative functions. In the
third quarter, DKK 16 million in restructuring costs
related to the cost savings program have been
recognised as special items, resulting in a total of
DKK 71 million for the first nine months. We now
expect total restructuring costs of DKK 120 million,
as opposed to the previously announced DKK 100
million.
On top of reducing fixed costs, we continue to drive
several procurement initiatives and have recently
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 8/20
Interim financial report
Q1-Q3 2023
strengthened our group procurement function.
Increasing the coordination among our regional
procurement allows us to harmonise spend further
and drive savings.
Our efforts on SG&A reductions are mainly focused
towards CWE. In the recent years a number of
acquisitions have been made in CWE and while they
are integrated from a sales perspective, there are
further synergies in the SG&A. We therefore work
hard to optimise and align processes across CWE
through a newly implemented ERP system.
Energy costs
During the third quarter, gas hedges dating back to
summer 2022 led to increased production costs.
These hedges are currently unfavourable to market
prices and increased production costs for the quarter
by DKK 32 million. Based on the current market
prices and current production volumes, we expect
an impact of around DKK 20 million for the fourth
quarter 2023.
In addition, lower volumes led to the sale of unused
gas in the market for the third quarter, resulted in
financial losses classified as special items amounting
to a net DKK 14 million. Total loss of unused gas for
the first nine months was DKK 36 million.
MOST MATERIAL RISKS AND
UNCERTAINTIES
For most material risk and uncertainties, please refer
to Note 3 “Risks Management” and to Note 4
“Significant accounting estimates and judgements”.
EVENTS IN THE QUARTER
For significant events in the quarter, please refer to
Note 9 “Special items, net”, Note 10 “Pension
obligations” and note 11 “Derivative financial
instruments”.
EVENTS AFTER THE BALANCE SHEET DATE
No events have occurred after the balance sheet
date that will have a material effect on the parent
company’s or the H+H Company’s financial position.
FINANCIAL OUTLOOK FOR 2023
The Company’s financial expectations for the full
year 2023 is narrowed:
• Revenue growth measured in local currencies of
around -25%. (Previous -20% to -25%)
• EBIT before special items is expected in the range
of DKK 30-80 million (Previously DKK 30-100
million)
ASSUMPTIONS FOR THE FINANCIAL
OUTLOOK FOR 2023
Specific assumptions
The expectations for H+H’s financial performance in
2023 are based on certain specific and general
assumptions. Management believes that the most
significant of these assumptions relate to the
following items:
• Sales volumes to decrease around -35%
• Exchange rates, primarily GBP, EUR and PLN
remain at mid-November 2023 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;
• macro-economic and geopolitical developments;
and
• operational uptime at H+H’s production plants,
including the supply of relevant energy and raw
materials.
FINANCIAL CALENDAR 2023/2024
2023 Annual Report
6 Mar 2024
2024 Annual General Meeting
9 Apr 2024
Q1 2024 Interim Financial Report
15 May 2024
H1 2024 Interim Financial Report
14 Aug 2024
Q3 2024 Interim Financial Report
20 Nov 2024
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.
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 9/20
Interim financial report
Q1-Q3 2023
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 10/20
Interim financial report
Q1-Q3 2023
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 nine months of 2023.
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 the 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 30 September 2023 and of the results of H+H’s operations and its cash flows for the period 1 January
to 30 September 2023.
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, 17 November 2023
EXECUTIVE BOARD
Jörg Brinkmann
CEO
Peter Klovgaard-Jørgensen
CFO
BOARD OF DIRECTORS
Kent Arentoft
Chair
Jens-Peter Saul
Vice chair
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 11/20
Interim financial report
Q1-Q3 2023
CONDENSED INCOME STATEMENT
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2023 2022 2023 2022 2022
Revenue 699 920 2,071 2,794 3,604
Cost of goods sold (561) (666) (1,601) (1,976) (2,584)
Gross profit before special items 138 254 470 818 1,020
Sales costs (37) (41) (115) (125) (170)
Administrative costs (46) (53) (149) (157) (222)
Other operating income and costs, net (2) 0 6 10 29
EBITDA before special items 53 160 212 546 657
Depreciation, amortisation and impairments (40) (50) (140) (149) (202)
EBIT before special items 13 110 72 397 455
Special items, net (32) (9) (206) (28) (42)
EBIT (19) 101 (134) 369 413
Financial income 1 1 6 3 6
Financial expenses (17) (4) (44) (15) (21)
Profit before tax (35) 98 (172) 357 398
Tax on profit 6 (16) 35 (74) (81)
Profit for the period (29) 82 (137) 283 317
Profit for the period attributable to:
H+H International A/S' shareholders (30) 78 (138) 275 303
Non-controlling interest 1 4 1 8 14
Profit for the period (29) 82 (137) 283 317
Earnings per share (EPS-Basic) (1.8) 4.5 (8.5) 15.9 17.1
Diluted earnings per share (EPS-D) (1.8) 4.5 (8.4) 15.7 17.0
Group
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2023 2022 2023 2022 2022
Profit for the period (29) 82 (137) 283 317
Items that may be reclassified subsequently to profit or loss:
Fair value adjustments of derivative financial instruments 18 - (25) - -
Gain/(loss) on derivative financial instruments transferred to the
income statements
8 8
Foreign exchange adjustments, foreign entities (21) (23) 21 (38) (17)
5 (23) 4 (38) (17)
Items that will not be reclassified subsequently to profit:
Actuarial gains and losses (1) 1 (47) (39) 18
Tax on actuarial gains and losses (2) (6) 6 (2) (1)
(3) (5) (41) (41) 17
Other comprehensive income after tax 2 (28) (37) (79) -
Total comprehensive income for the period (27) 54 (174) 204 317
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 12/20
Interim financial report
Q1-Q3 2023
CONDENSED BALANCE SHEET
Group
30 September 31 December 30 September
Amounts in DKK million 2023 2022 2022
ASSETS
Non-current assets
Goodwill 420 419 453
Other intangible assets 248 253 272
Property, plant and equipment 1,739 1,822 1,718
Deferred tax assets 15 17 15
Financial assets 5 6 7
Total non-current assets 2,427 2,517 2,465
Current assets
Inventories 688 523 442
Receivables 253 174 270
Cash 604 536 528
Total current assets 1,545 1,233 1,240
TOTAL ASSETS 3,972 3,750 3,705
EQUITY AND LIABILITIES
Equity
Share capital 165 175 175
Retained earnings 1,649 1,822 1,773
Other reserves (151) (155) (176)
Equity attributable to H+H International A/S’ shareholders 1,663 1,842 1,772
Equity attributable to non-controlling interests 97 96 96
Total equity 1,760 1,938 1,868
Non-current liabilities
Pension obligations 47 23 91
Provisions 38 38 41
Deferred tax liability 64 110 126
Credit institutions 1,335 920 802
Deferred payments, acquisition of subsidiary 99 105 105
Lease liabilities 88 81 74
Total non-current liabilities 1,671 1,277 1,239
Current liabilities
Lease liabilities 25 27 20
Trade payables 340 278 292
Income tax 1 37 59
Deferred payment, acquisition of subsidiary 7 7 7
Provisions 4 9 5
Other payables 164 177 215
Total current liabilities 541 535 598
Total liabilities 2,212 1,812 1,837
TOTAL EQUITY AND LIABILITIES 3,972 3,750 3,705
Net interest-bearing debt 844 492 368
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 13/20
Interim financial report
Q1-Q3 2023
CONDENSED CASH FLOW STATEMENT
Q3 Q3 Q1-Q3 Q1-Q3
Amounts in DKK million 2023 2022 2023 2022
Operating profit (EBIT)
(19) 101 (134) 369
Financial income, received
1 1 3 3
Financial expenses, paid
(17) (4) (41) (15)
Depreciation and amortisation
40 50 140 149
Impairment of assets associated with closed down factories
4 - 101 -
Gain and losses on sale of assets and other non-cash effects
(9) 2 (2) (5)
Change in working capital
100 (27) (209) (138)
Change in provisions and pension contribution
(9) (5) (27) (32)
Income tax paid
(4) (17) (39) (44)
Operating activities 87 101 (208) 287
Acquisition of enterprises - - (7) -
Acquisition of property, plant and equipment and intangible assets (33) (65) (108) (149)
Investing activities (33) (65) (115) (149)
Change in borrowings 23 31 415 59
Change in lease liabilities (7) (6) (22) (19)
Purchase of treasury shares - (47) (2) (132)
Financing activities 16 (22) 391 (92)
Total cash flow for the period 70 14 68 46
Cash and cash equivalents, opening 540 526 536 499
Foreign exchange adjustments of cash (6) (12) - (17)
Cash and cash equivalents at 30 September 604 528 604 528
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 14/20
Interim financial report
Q1-Q3 2023
CONDENSED STATEMENT OF CHANGES IN EQUITY
Amounts in DKK million
Share
capital
Hedging
reserve
Translation
reserve
Retained
earnings
H+H
shareholders
share
Non con-
trolling
interests’
share
Total
Equity at 1 January 2023 175 - (155) 1,822 1,842 96 1,938
Total changes in equity
Profit for the period - - (138) (138) 1 (137)
Other comprehensive income - (17) 21 (41) (37) - (37)
Total comprehensive income - (17) 21 (179) (175) 1 (174)
Share-based payment - - - (2) (2) - (2)
Purchase of treasury shares - - - (2) (2) - (2)
Share capital decrease (10) - - 10 - - -
Total changes in equity in 2023 (10) (17) 21 (173) (179) 1 (178)
Equity at 30 September 2023 165 (17) (134) 1,649 1,663 97 1,760
Equity at 1 January 2022 180 - (138) 1,662 1,704 110 1,814
Total changes in equity
Profit for the period - - - 275 275 8 283
Other comprehensive income - - (38) (41) (79) - (79)
Total comprehensive income - - (38) 234 196 8 204
Share-based payment - - - 4 4 - 4
Purchase of treasury shares - (132) (132) - (132)
Share capital decrease (5) - - 5 - - -
Adjustment to non-controlling interests arising
from acquisition
- - - - - (22) (22)
Total changes in equity in 2022 (5) - (38) 111 68 (14) 54
Equity at 30 September 2022 175 - (176) 1,773 1,772 96 1,868
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 15/20
Interim financial report
Q1-Q3 2023
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 30 September 2023 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 interim financial report complies with the recognition and
measurement principles in the International Financial Reporting Standards (IFRS). The interim financial report has
not been reviewed by H+H’s auditors.
With reference to Note 11 “Derivative financial instruments”, H+H has introduced the accounting principles below.
Fixed price and volume contracts for energy such as gas and electricity are accounted for using the ‘own use’
exemption and recognized in the profit and loss statement upon realization of the usage. These contracts are on
frequent basis assessed if the ‘own use’ assumptions are still valid. If contracts are in breach with the ‘own use’
assumption a ‘day one loss/gain’ corresponding to the fair value of the underlying derivative as of the date of
identifying the breach are recognised, and the contracts are subsequently accounted for using the hedge
accounting principles for derivative financial instrument. The day one loss/gain are transferred to the profit and
loss statement upon realization of the underlying hedged item.
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently
remeasured at their fair values. Positive and negative fair values of derivative financial instruments are included as
other receivables and other payables, respectively.
Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of future
cash flows are recognised in other comprehensive income. Gain and losses relating to such hedging transactions
are transferred from other comprehensive income to the income statement upon realisation of the hedged item or
when the hedge relationship is no longer effective. Changes in the fair value of derivative financial instruments
that do not qualify for hedge accounting are recognized in the income statement.
Other than above, the accounting policies are consistent with those applied in the 2022 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 2023. It is
assessed that the revisions and amendments have not had a material impact on the consolidated financial
statements.
3. Risk Management
H+H’s principal risks and the external factors that may affect H+H are provided in the 2022 Annual Report. These
are unchanged as of 30 September 2023.
4. Significant estimates and judgements
Determining the carrying amounts of some assets and liabilities requires Management to make judgements,
estimates and assumptions concerning future events. The estimates and assumptions made are based on historical
experience and other factors that are believed by Management to be sound under the circumstances but that, by
their nature, are uncertain and unpredictable. Financial statement items in which more significant accounting
estimates and judgements are applied are listed in Note 2 of the 2022 Annual report for H+H International A/S.
In the case of 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 (reference made to note 8).
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 16/20
Interim financial report
Q1-Q3 2023
The estimates and assumptions may be incomplete or inaccurate, and unforeseen events or circumstances may
occur. Moreover, the H+H Group is subject to risks and uncertainties that may lead to the actual outcomes vary
from these estimates and assumptions. It may be necessary to change estimates and assumptions made previously
as a result of changes in the factors on which these were based or as a result of new knowledge or subsequent
events.
5. Seasonal fluctuations
The sales pattern for H+H’s products is seasonal. Sales in the second and third quarters are traditionally 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 the Company’s earnings. As a result of the current
market situation the seasonal fluctuations are lower than in previous years.
6. Income statement classified by function
The above table shows an extract of the income statement adapted to show depreciation and amortisation
classified by function.
7. Geographical information
When presenting information on geographical areas, information on revenue is based on countries with the
exception of the “Central Western Europe” region which comprises Germany, Switzerland, Denmark, Sweden, the
Czech Republic, Netherlands and Belgium. Revenue for Germany for Q3 2023 amounted to DKK 197 million (2022:
DKK 289 million) and to DKK 662 million for the first nine months of 2023 (2022: DKK 872 million).
Amounts in DKK million Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022
Revenue 699 920 2,071 2,794
Cost of goods sold (585) (700) (1,690) (2,076)
Gross profit including depreciation and amortisation 114 220 381 718
Sales cost (46) (53) (148) (162)
Administrative costs (53) (57) (167) (169)
Other operating income and costs (2) - 6 10
EBIT before special items 13 110 72 397
Special items, net (32) (9) (206) (28)
EBIT (19) 101 (134) 369
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 17 41 97 116
Amortisation of intangible assets 23 9 43 33
Total 40 50 140 149
Depreciation, amortisation and impairment are allocated to:
Production costs 24 34 89 100
Sales costs 9 12 33 37
Administration costs 7 4 18 12
Total 40 50 140 149
Amounts in DKK million Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022
Central Western Europe 299 406 999 1,242
United Kingdom 226 296 594 816
Poland 174 218 478 736
699 920 2,071 2,794
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 17/20
Interim financial report
Q1-Q3 2023
8. Impairment testing of goodwill and non-current assets
Change in cash-generating units
In Q2 2023, Management reassessed the cash-generating units (‘CGUs’) identified for the Group. It is
Management’s assessment the two CGU’s CWE AAC and CWE CSU should be combined into one CGU, ‘CWE’ due
to changes in internal reporting, shared internal processes to support both product groups and how goodwill is
monitored at H+H Group level. As of 30 June 2023 the identified CGUs are aligned with our operating segments,
being Central West Europe(‘CWE’), Poland and United Kingdom. Management is of the opinion that the lowest
level of cash-generating unit to which the carrying amount of goodwill can be allocated is in each CGU.
The carrying values of goodwill recognised for each of the CGU’s amount to; Central Western Europe DKK 397
million (31 December 2022: DKK 398 million), Poland DKK 23 million (31 December 2022: DKK 23 million) and
United Kingdom DKK 0 million (31 December 2022: DKK 0 million).
Impairment testing
Management test goodwill for impairment for each CGU to which such assets has been allocated at least once a
year or if key assumptions has changed leading to an indication of possible impairment. Due to the significant
decrease in earnings in the first 6 months of 2023, Management performed impairment testing of goodwill as of
30th June 2023. For the purpose of the impairment testing the recoverable amounts was defined as the value in
use calculated by using a discounted cash flow model (‘DCF’). The impairment testing for each of the CGUs
concluded a reasonable headroom still exist and Management believes that any likely changes in the key
assumptions will not cause the carrying amount of goodwill and non-current assets to exceed the recoverable
amounts. Therefore, no impairment of Goodwill were recognised as of 30 June 2023.
The realised Q3 results were in line with expectations and there has not been any material changes to the forecast
used in the H1 2023 impairment testing. Therefore, Management has assessed there is no indication of
impairment need as of 30 September 2023, and thus no impairment testing has been performed.
Key assumptions
Management reassessed all the key assumptions made in connection with the impairment test performed at year-
end 2022, and whether these has changed in the 6 months period ending 30 June 2023 due to significant change in
market conditions and internal initiatives conducted to adapt to the current market situation. The assumptions are
made based on actual performance for the first 6 months and the strategy plan developed for 2023-2027 as
approved by the Board prolonged by one year to 2028.
Factories closed down in Germany comprise three factories included in the CGU for “CWE”, and factories closed
down in Poland comprised two factories, both included in the CGU for “Poland”. It is Management assessment,
that the factory close downs will not negatively affect the expected future cash in-flows to be generated from each
of the CGUs as the remaining factories within each of the CGUs has sufficient capacity to supply existing markets
both on short, mid- and long term.
The market decline materialised in 2023 was more severe than initially anticipated, this driven by the continued
interest rate increases for mortgages as a consequence of the central banks effort to lower inflation. The market is
expected to have reached it’s low in 2023, and furthermore expected to remain on this lower activity level
throughout 2024, for then to pick-up from 2025 and onwards. Assumptions are based on historic trends, external
benchmarked data as well as Management’s best estimate. The key assumptions for the impairment test are
growth in terminal period and WACC, but also to some extend impacted by annual growth in revenue (CAGR) and
gross margins.
In the impairment test as of 30 June 2023, a WACC after tax of 8.7% (2022: 8.2%) was applied for the CWE CGU,
and 11.7% (2022: 13.0%) was applied for the PL CGU. The CAGR for the CWE CGU applied in the impairment test is
to 7% (2022: 6%) and 8.1% for the PL CGU (2022: 6.9%) significantly impacted by a lower basis (H1 2023 LTM
revenue). The total forecasted revenue in the 2028 budget used for impairment tests are respectively 4% (CWE)
and 18% (PL) lower than the forecasted revenue in the impairment tests performed in connection with the annual
report 2022. Growth in the terminal period (2%) and expected gross margin development assumptions (CWE CGU:
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 18/20
Interim financial report
Q1-Q3 2023
(0.3%) and PL CGU 0.7% compared to 2022 margins) remain unchanged compared to assumptions applied in the
impairment test performed as of 31 December 2022.
9. Special items, net
During the second and third quarter of 2023, three factories in Germany and two in Poland has been closed down.
As required, an assessment of the recoverable amounts of production and related equipment has been carried
out. The assessment has led to the recognition of impairment losses of DKK 99 million which have been recognised
in the profit and loss statement as a special item.
The review has comprised an assessment of estimated sales value less cost to sell or disposal, which has been
based on initial discussion with potential buyers of machines or equipment, historically experience or possibilities
for using the equipment or machinery in other factories. The main classes of assets affected by the impairment
losses are various operational production assets and other machinery and equipment used in the production.
Further to this, restructuring costs of DKK 16 million has also been recognised as special items in the quarter.
Restructuring costs has been recognised in accordance with IAS 37, and mainly comprise directly associated costs
to factory close downs in Germany and Poland as well as general restructuring costs including costs related to
termination of employees.
In the third quarter 2023, the H+H has continued to sell unused gas back to the market resulting in financial losses
of DKK 17 million as the fixed prices of the gas being sold off exceeds current market prices. In addition to this, an
fair value adjustment of the ineffective part of the commodity forward contracts hedges of positive DKK 3 million
has also been recognised. Therefore, the total ineffective part of gas hedges, presented as special items, amounts
to a loss of DKK 14 million in the quarter and DKK 36 million for the 9 months period ending 30 September 2023.
10. 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 predominantly relate 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 30 September 2023, 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 1 million (GBP 0.2 million), triggering IFRIC 14
recognition of future committed pension contribution of the scheme, as H+H UK do not have unconditional right to
refund. Consequently, a net value of DKK 38 million (GBP 4.4 million) has been recognised as of 30 September
2023.
Compared to December 2022, and based on the above, a value adjustment (including the effects of IFRIC 14), has
been made relating to UK pension plan, affecting total comprehensive income negatively by DKK 41 million net of
tax.
Amounts in DKK million Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022
Impairment of assets, closed down factories 2 - 99 -
Restructuring costs 16 9 71 28
Unfavorable part of gas hedges 14 - 36
Total 32 9 206 28
Impact of special items on EBIT
Cost of goods sold 23 9 79 21
Sales and administrative costs 7 - 28 7
Depreciation, amortisation and impairments 2 - 99 -
EBIT before special items 32 9 206 28
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 19/20
Interim financial report
Q1-Q3 2023
The total pension obligation, including the recognition of future committed pension contributions, on 30
September 2023 amounts to DKK 47 million, compared to DKK 23 million on 31 December 2022. The increase is
driven by recognition of future commitments in Q2 2023, payments, interest, value adjustment and currency
adjustment.
11. Derivative financial instruments
During 2022, H+H entered into some fixed volume and price gas contracts covering the period 2023 to 2026. Due
to a significantly lower demand, not all gas for the period 1 April 2023 to 31 March 2024 is expected to be used in
production and consequently the excess will be sold off to the market at spot prices on a monthly basis, effectively
falling outside the exemption of “own use” recognition in accordance with IFRS 9 for all similar gas contracts
entered. Therefore, the hedge accounting principles has been applied for the commodity forward contracts from
the day of the breach, being 1 April 2023. At initial recognition the commodity forward contracts were measured
at fair value and a corresponding ‘day one loss’ included in other payables.
The ‘day one loss’ are transferred to the income statement upon realisation of the underlying hedged items,
whereas the commodity forward contracts are measured at fair value through OCI for the part that qualify for
hedge accounting and as Special Items in the income statement for the part that is deemed ineffective. As of 30
September 2023 the ‘day one loss’ and fair value of the commodity forward contracts amount to DKK 158 million
and DKK 178 million, respectively, and thus included in other payables with a net liability of DKK 20 million. The
effective part of the commodity forward contracts are recognised in OCI by DKK 17 million and an ineffective part
of DKK 3 million has been recognised as special items in the income statement.
Derivative financial instruments recognised only contain the above mentioned commodity forward contracts which
are measured at fair value using generally accepted valuation techniques based on observable market prices and
forward market rates and therefore categorised as Level 2 in the fair value hierarchy. No other assets or liabilities
are measured at fair value as of 30 September 2023.
12. Financial resources and cash flow
On 30 September 2023, net interest-bearing debt, totalled DKK 844 million, corresponding to an increase of DKK
352 million since the beginning of the year. The increase in net interest-bearing debt since the beginning of the
year was primarily driven by lower earnings due to a lower activity level as well as a negative working capital
development led by stock build due to capacity adjustments.
On 1 March 2023, a new committed credit facility was agreed with Nordea Danmark, branch of Nordea Abp,
Finland, effectively in place 31 March 2023. The agreement has a duration of 3 years.
H+H’s financing is subject to usual financial covenants, which have been fulfilled in the first nine months of 2023
and are also expected to be fulfilled for the full year 2023.
13. Share buy-back programme
On 4 January 2023, the share buy-back programme initiated in 2022 was concluded with 1,118,800 shares
acquired at total purchase price of DKK 150 million.
14. Share-based payment
The performance-share-units schemes for 2022 and 2021 are active and presented in the 2022 Annual Report.
In October 2023, the Board of Directors of H+H International A/S decided to initiate a new share-based long-term
incentive program (LTIP) being a performance share unit (PSU) program. PSU grants under the LTIP are made as
described in Company announcement no. 545.
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 20/20
Interim financial report
Q1-Q3 2023
In the first nine months of 2023, a net income of DKK 3 million was recognised under staff costs compared to a net
expense of DKK 4 million in first nine months of 2022.
15. Tax on profit
16. Related parties
Related parties of H+H with significant influence include the Board of Directors and the Executive Board of the
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 or with members of the
Executive Board, except for compensation and benefits received as a result of their membership of either the
Board of Directors, employment with H+H or shareholdings in H+H.
17. Share capital
On 4 May 2023, and with reference to Company Announcement no. 433 of 30 March 2023, the approved
reduction of the share capital by a nominal amount of DKK 10,000,000 from 175,000,000 to DKK 165,000,000
through the cancellation of 1,000,000 shares of nominally DKK 10.00 each was registered at the Danish Business
Authority.
Similarly, on 5 May 2022, and with reference to Company Announcement no. 485 of 5 May 2022, the approved
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.
There have been no movements in the share capital in the last five years except for the changes stated in the
above paragraph.
18. Events after the balance sheet date
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 Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022
Current tax (16) 15 - 76
Movement in deferred tax 10 1 (35) (2)
Tax on profit (6) 16 (35) 74
Amounts in DKK million 2023 2022 2023 2022
Share capital at 1 January 17,500,000 17,983,365 175 180
Movements (1,000,000) (483,365) (10) (5)
Share capital at 30 June 16,500,000 17,500,000 165 175
Number
Nominal value, DKK million
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