H+H International A/S | CVR-no: 49 61 98 12 | LEI: 3800GJODT6FV8QM841 | Lautrupsgade 7, 5
th
Floor. 2100 Copenhagen Ø
Annual Report 2024
We are
Partners
in Wall
Building
H+H Internation al A/S | CVR-no: 49 61 98 1 2 | LEI: 3800GJ ODT6FV8QM8 41 | Lautrupsg ade 7, 5
th
Floor. 2100 Copen hagen Ø
Remuneration Report 2024
We are
Partners
in Wall
Building
Corporate Governance Statement 2024
H+H Internation al A/S | CVR-no: 49 61 98 1 2 | LEI: 3800GJ ODT6FV8QM8 41 | Lautrupsg ade 7, 5
th
Floor. 2100 Copen hagen Ø
We are
Partners
in Wall
Building
About this report
Like last year H+H International A/S
has prepared an integrated Annual
Report and no longer publishes
separate sustainability and financial
reports.
The Annual Report of H+H International A/S
comprises both the consolidated financial state-
ments of H+H International A/S and its subsid-
iaries (the H+H Group). It has been prepared in
accordance with the IFRS Accounting Standards
as adopted by the EU and further requirements
in the Danish Financial Statements Act. Unless
otherwise stated, all figures in parenthesis refer to
the corresponding figures in the prior year.
The Annual 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 mate-
rially from the expectations expressed in this
document. In no event will 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.
In accordance with the Corporate Sustainability
Reporting Directive (CSRD), the 2024 Annual
Report has been prepared as one report, inte-
grating the sustainability and financial reports and
embedding the mandatory European Sustaina-
bility Reporting Standards (ESRS). The sustain-
ability statement is prepared in accordance with
sections 99a and 107d of the Danish Financial
Statements Act. The 2024 Annual Report is
prepared using the ‘incorporation by reference’
method, where some required disclosures as per
the ESRS are not included in the sustainability
statement and are instead integrated into other
parts of the Annual Report.
Incorporation by reference
Mandatory disclosures as per the ESRS which
have been placed outside of the sustainability
statement have been marked as such and are
presented within the body of text with the disclo-
sure requirement reference in header or sub
header (e.g., E1-1), indicating that the column is
referenced.
A list of information and data points that have
been placed outside of the sustainability state-
ment can be found in the sustainability statement
starting on page 48.
Remuneration Report
The Remuneration Report provides a specified
overview of the remuneration received in 2024 by
each member of the Board of Directors and of the
Executive Board (i.e. the persons registered in the
registry of the Danish Business Authority).
The Remuneration Report has been prepared
in accordance with section 139b of the Danish
Companies Act and will be presented for an
advisory vote at the annual general meeting on 8
April 2025.
Corporate Governance Statement
The statutory Corporate Governance Statement
forms part of the management's review in the
Annual Report for 2024 for H+H International A/S
and includes the status of compliance with the
‘Recommendations for Corporate Governance’
issued by the Danish Committee on Corporate
Governance in December 2020 and implemented
by Nasdaq Copenhagen.
Read more
Remuneration report
Read more
Corporate governance statement
H+H International | Annual Report 2024 | 2In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents
Purpose and promises
We enable better homes
for our communities
Partners in Wall Building
Being a part of H+H means you are in
the business of people and teamwork.
Our partners trust us to understand
their building needs from design,
specification and planning to delivery,
assembly and problem solving.
With our partners, we enable better
homes for our communities.
Putting people first
The health and safety of our people,
suppliers and customers, will never be
compromised. We are committed and
have the ambition of zero harm for our
own and our partners’ people.
We know that people are different.
We trust our differences enable us to
see new opportunities and be more
effective.
People are the heart of H+H.
Performance driven
H+H strives to deliver results to all
our partners and in the communities
where we operate.
Even when times are difficult,
we deliver quality products with
the highest level of service to our
customers. Our operations run timely
and effectively. We follow through on
our commitment to serve our commu-
nities.
You can trust us to deliver on our
promises.
Pushing the boundaries
To build better homes, we must
stay curious and eager to drive our
industry forward.
We are continuously improving oper-
ations and products. Together with
our partners we rethink supply chains,
services and digital solutions.
We are pushing to meet the needs of
tomorrow.
Part of a sustainable future
Today we work with our partners to
reduce energy needs in homes and
our commitment is more than the long
lasting and insulating products we
produce.
We are part of the solution in creating
sustainable and carbon neutral
buildings. We are partnering with
our customers, suppliers, and other
stakeholders; finding new production
methods to lower the environmental
impact of homes.
We act today to realise our vision of
carbon neutrality in 2050.
H+H International | Annual Report 2024 | 3In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents
Table of Contents
Management’s review
In brief 5
Business and strategy 16
Results 26
Governance 35
Sustainability statement 48
Financial statements
Consolidated financial statements 89
Notes 93
Statements 131
Contact information 139
Other 2024 reports
Remuneration Report
Corporate Governance Statement
Results
Page 26-34
Business and strategy
Page 16-25
Sustainability statement
Page 48-87
H+H International | Annual Report 2024 | 4In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
In brief
6 H+H at a glance
7 Performance highlights
8 Five-year summary
10 Letter from the Chair
12 Letter from the CEO
14 Equity story
15 Outlook
H+H International | Annual Report 2024 | 5In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
31%
32%
37%
Central Western Europe
The United Kingdom
Poland
Headquarters
CSU
AAC
H+H at a glance
H+H is a leading provider of wall-
building solutions, committed to
being the ideal partner for every
project. With a strong market
presence, we leverage industry
insights and customer expertise
to solve challenges and provide
better homes for our communities,
positioning H+H for future growth.
Climate
28%
By 2030, we want to reduce absolute scope
1 and 2 GHG emissions by 46% from a 2019
baseline. As of 2024, we have achieved a 28%
improvement of CO
2
kg/m
3
.
By 2050, we want to achieve net zero emissions
from own operations and supply chain.
People
1,337
Based across Northern Europe we employ
over 1,300 people, of whom around 70%
work in our plants.
Plants
27
In 2024, we reopened one of our four
mothballed plants in response to market
demands. Across all active plants we produced
a total of 2.7 million cubic meters of wall-
building materials in 2024.
Markets
Share of revenue
Revenue (DKKm)
2,747
In 2024, we generated total revenue of
DKK 2,747 million and organic growth
of 0%.
H+H International | Annual Report 2024 | 6In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Performance highlights
SustainabilityFinancial
Gross margin
DKKm
EBIT before special items
DKKm
Financial gearing
DKKm
0.9
In 2024, we achieved our lowest ever
LTIF rate of 0.9.
Organic growth
Percent
EBITDA before special items
DKKm
Free cash flow
DKKm
Climate – Reduction in
scope 1 and 2 emissions
Safety – Lost time incidents frequency
(LTIF)
13%
We achieved 13% lower scope 1 and
2 emissions compared to last year,
making us well-aligned and on track
with our Science Based targets.
0%
Sales volume increased by 8%. This was
offset by country mix effects and lower
prices.
250
In 2024, EBITDA before special items
was DKK 250 million corresponding to
a 9% margin, which is unchanged from
last year.
219
Free cash flow was DKK 219 million, up
from a negative DKK 346 million last
year, driven by land sales in Poland and
destocking.
21%
Gross margin was 21% and on par with
2023. Gross profit was DKK 579 million.
63
EBIT before special items amounted
to DKK 63 million compared to DKK 57
million in 2023, corresponding to EBIT
margins of 2% in both 2023 and 2024.
2.7x
Net interest-bearing debt was DKK 682
million as of end-2024, down DKK 205
million from last year.
See all about of our sustainability
performances on page 9
H+H International | Annual Report 2024 | 7In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Five-year financial summary
Income statement (DKK million) 2024 2023 2022 2021 2020
Revenue 2,747 2,672 3,604 3,020 2,654
Gross profit bsi 579 564 1,020 905 836
SG&A 331 346 392 329 319
EBITDA bsi 250 244 657 591 521
EBITDA 228 58 615 567 521
EBIT bsi 63 57 455 408 332
Special items (22) (287) (31) - -
EBIT 41 (230) 413 377 332
Result before tax (29) (283) 398 356 307
Result after tax for the year (50) (246) 317 321 251
Balance sheet (DKK million) 2024 2023 2022 2021 2020
Assets 3,473 3,454 3,572 3,400 2,909
Invested capital
1
2,146 2,435 2,142 1,852 1,865
CAPEX
2
156 197 293 223 155
Acquisition and divestment of enterprises - - - 238 72
Net working capital 144 359 242 65 55
Equity 1,650 1,678 1,938 1,814 1,509
Net interest-bearing debt (NIBD) 682 887 492 350 230
Cash flow (DKK million) 2024 2023 2022 2021 2020
Cash flow from operating activities 145 (209) 316 454 425
Cash flow from investing activities 74 (137) (255) (427) (206)
Cash flow from financing activities 103 131 (80) (25) 6
Free cash flow 219 (346) 61 27 219
Financial ratios and others 2024 2023 2022 2021 2020
Sales volume (thousand m
3
) 2,967 2,745 4,187 4,326 4,022
Organic growth 0% (25%) 14% 13% (6%)
Gross margin bsi 21% 21% 28% 30% 31%
EBITDA margin bsi 9% 9% 18% 20% 20%
EBITDA margin 9% 2% 17% 19% 20%
EBIT margin bsi 2% 2% 13% 14% 13%
EBIT margin 1% (9%) 11% 12% 13%
Return on invested capital (ROIC) (excl. Goodwill)
3
2% (9%) 19% 20% 18%
Solvency ratio 45% 46% 52% 50% 50%
NIBD/EBITDA before special items ratio 2.7x 3.6x 0.7x 0.6x 0.4x
2020 - 2021 numbers have not been adjusted to the change in accounting policy for presenting cash pool.
CAPEX includes leasing expenditures accounted according to IFRS 16.
Due to acquisitions the method for calculating Return on invested capital (ROIC) has changed to better reflect a true and fair view.
ROIC for the period 2020-2021 has been calculated as Operating profit (EBIT) relative to average invested capital (excluding goodwill)
on a twelve-month basis.
Note: Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts. See page
121.
H+H International | Annual Report 2024 | 8In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Five-year sustainability summary
Environmental data UoM 2024 2023¹ 2022¹ 2021¹ 2020¹
CO
2
e scope 1 Tonnes 81,884 *93,602 142,796 132,345 121,598
CO
2
e scope 2 - market based Tonnes 6,885 *15,198 33,454 59,461 56,765
CO
2
e scope 2 - location based Tonnes 25,522 29,369 45,702
CO
2
e scope 3 Tonnes 394,435 442,582 688,192 673,554 624,247
Total GHG emissions - market based Tonnes 483,205 551,381 864,442 865,360 802,609
CO
2
e scope 1 kg/m
3
30 31 33 31 32
CO
2
e scope 2 - market-based kg/m
3
3 5 8 14 14
CO
2
e scope 3 kg/m
3
144 146 157 157 157
Total GHG emissions per m
3
kg/m
3
177 182 198 202 203
Total GHG emission per net revenue Tonnes/Mil. DKK 176 206 240 287 302
Energy consumption GJ 1,501,325 1,749,942 2,487,149 2,380,949 2,195,301
Energy consumption MWh 417,035 486,095 690,875 661,375 609,806
Natural gas MWh 254,804 315,096 418,262
Coal MWh 98,894 92,588 146,867
Oil MWh 1,754 12,458 26,253
Fossil steam and electricity MWh 17,929 41,109 65,722
Renewable electricity MWh 43,653 24,843 33,770
Percentage renewable % 10% 8% 5% 0% 0%
Total energy per m
3
MJ 549 575 567 554 551
Energy intensity per net revenue MWh/Mil. DKK 152 182 192 219 230
Production volume Million m
3
2.7 3.0 4.4 4.3 4.0
* ESG figure subject to limited assurance in 2023
¹ Not covered by the Independent Auditor’s limited assurance report
Social data UoM 2024 2023¹ 2022¹ 2021¹ 2020¹
Employees Headcount 1,337 1,355 1,739 1.,633 1,571
Gender diversity % 17% 18% 16% 16% 15%
Gender diversity, office workers % 46% 45% 41% 47% 47%
Gender pay gap (Average) % -17% -6% 7% 10% 15%
CEO Pay Ratio Times 34 29 32 37 35
Employee turnover ratio % 22% 40% 15% 13% 14%
Employee turnover Headcount 280 605 267 206 217
Sickness absence Days per FTE 12 14 13 12 13
Sickness absence, short-term Days per FTE 8 10 11 10 11
Fatalities Headcount 0 0 0 0 0
Lost-time Incident frequency (LTIF) Incident per mil 0.9 *3.4 3.6 5.5 5.7
Total recordable incidents Number of 7 18 77 103 105
Total recordable contractor incidents Number of 0 0 3 3 2
Total recordable incident rate (TRIR) Incident per mil 3 7 25 35 38
Recordable work-related ill health Number of 0 0
Gender diversity, Board % 29% 29% 33% 17% 17%
Gender diversity, Top management % 0% 0%
H+H International | Annual Report 2024 | 9In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Navigating the downturn and
building a stronger foundation
Letter from the Chair
The past two years have tested the
housebuilding industry in ways few
could have predicted. The severe
downturn in new-build activity, driven
by rising interest rates and economic
uncertainty, has reshaped our
industry, forcing companies to adapt
rapidly. At H+H, we have navigated
this challenging period with resilience
and discipline, making difficult
but necessary decisions to ensure
the company remains strong and
prepared for the future.
While we are seeing early signs of stabilisation
in some markets—particularly in the UK and
Poland—the overall environment remains uncer-
tain, with Germany still experiencing headwinds.
As a business operating in a cyclical industry,
we fully acknowledge that our performance is
closely tied to market conditions. The timing of
interest rate adjustments and broader economic
recovery will ultimately determine when demand
rebounds. However, what we can control is how
we respond—and over the past two years, we
have built a more stable, efficient, and financially
resilient H+H.
Resilience built for the long term
While the external environment remains uncer-
tain, H+H has taken decisive action by adjusting
its cost base and streamlining operations to
enhance efficiency in a low-volume scenario.
Kent Arentoft
Chair
Streamlining efforts, including plant closures,
workforce reductions, and network optimisa-
tion, have delivered essential cost savings and
strengthened our financial position.
A key focus in 2024 was strengthening our
balance sheet. The strategic divestment of a
non-operational production site in Poland for PLN
110 million combined with several initiatives to
improve our free cash flow, has reduced net debt
and reinforced our capital structure. By year-end,
financial gearing stood at 2.7 times EBITDA before
special items, bringing it closer to our long-term
targets.
Going forward, we will continue to evaluate our
capital projects to ensure that they align with our
commitment to enhance the efficiency of our
existing assets.
H+H International | Annual Report 2024 | 10In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Delivering on our ESG promises
We will remain focused on enhancing business
operations while contributing to the green transi-
tion and reducing emissions. Responsibility is at
the core of everything we do, driving our commit-
ment to lowering emissions and operating with
integrity. In 2024, we made significant progress,
achieving notable reductions in scope 1 and 2
emissions and improving our important incident
frequency ratio – clear reflections of our dedica-
tion to environmental and operational excellence.
Addressing CO
2
emissions in the building industry
is essential, and our products are well-suited for
long-term growth as they enable energy-efficient
construction and reduce the life-cycle emissions
of buildings. In collaboration with our partners, we
focus on solutions and innovation for carbon-neu-
tral buildings.
Reaching our long-term financial targets
As we move into 2025, uncertainties to the pace of
economic growth and consumer spending persist,
and we expect market conditions to remain chal-
lenging in the near term. However, we are encour-
aged by emerging positive trends in some of our
key markets and our recent restructuring has
created a more resilient business, positioning us
to better withstand declining volumes and market
fluctuations. Together, these factors strengthen
our confidence and support our long-term finan-
cial targets of achieving a 12% EBIT margin and a
16% Return on Invested Capital (ROIC).
Closing remarks
On behalf of the Board of Directors, I would like
to extend my deepest gratitude to our employees
for their dedication, resilience, and hard work
during a challenging year. I also want to thank our
customers and partners for their trust and collab-
oration. Together, we now look forward to shaping
the future of H+H.
Kent Arentoft
Chair
Long-term financial targets
EBIT margin
Return on invested capital (ROIC)
Financial gearing
(Net interest-bearing debt to EBITDA)
12%
16%
1-2x
Please see page 25 for long-term target assumptions
H+H International | Annual Report 2024 | 11In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Prepared for
future growth
Letter from the CEO
With the streamlining of our organisation
over the last two years, we enter 2025 on a
stronger and more competitive foundation,
well positioned to capitalise on the growth
opportunities within our markets.
Shaping the German business for growth
A key focus for us in 2024 was to further streamline our German
organisation and strengthen the foundation of the business. This
involved difficult but necessary decisions – including the closure
of underperforming plants, a reduction in SG&A expenses and the
painful but necessary step to reduce our workforce. These decisions
were driven not only by short-term capacity adjustments, but follow
a long-term strategic plan to leverage our plant network and organi-
sation in total.
Under the umbrella of Project ONE we have redesigned the German
business model. Project ONE is designed to deliver great customer
experience and higher profitability within the region through a more
streamlined and agile organisation. After many years of acquisitions
in Germany we have integrated the business into ONE customer
centric organisation, now ready to drive consolidation synergies.
We believe that the German market still offers future consolidation
options, and ONE is the platform and integration blueprint for future
acquisitions and joint ventures, ensuring faster payback of the
targeted synergies.
Jörg Brinkmann
CEO
In 2024, new-build activity remained low across our markets, driven
by a weak European economy and unfavourable financing conditions.
While Poland and the UK showed some positive momentum, the
German market continued to decline, requiring further streamlining
measures. As a business operating in a cyclical industry, we found
ourselves at the lowest point of the cycle. In this environment, we
delivered organic growth of 0%, and an EBIT before special items of
DKK 63 million, highlighting the continued need for further measures
to improve the profitability and resilience of H+H.
H+H International | Annual Report 2024 | 12In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
HOME – H+H Operating Model of Excellence
Over the last two years we have significantly adjusted the plant
network of the company. In total we have closed five and mothballed
three plants. All decisions we have taken were based on a new oper-
ating model for the company. Under the HOME (H+H Operating
Model for Excellence) initiative we are driving uptime of our plants,
continuous improvement and debottlenecking. By doing this we are
gradually improving the output of our plants, avoiding large exten-
sions or greenfield investments. With HOME our current network
offers 30% more capacity, ready to be unlocked when markets
pick up again—step by step, at higher efficiency levels, ensuring an
improved competitive advantage in our regional markets.
Mission Zero – Safety and the green transition
remain at the core of everything we do
The safety of our employees, customers, and contractors remains
our highest priority. We firmly believe that every accident is prevent-
able and, in 2024, launched our new Group Safety Programme, ZERO
HARM, which primarily focuses on the behavioural aspects of safety.
We are proud that ZERO HARM has delivered remarkable results in
its first year. With an LTIF rate of 0.9, we have achieved a record low,
setting a new benchmark within our industry.
We remain committed to supporting the environmental transforma-
tion of European cities and communities by developing products and
applications that increase energy efficiency and lower the lifecycle
emissions of buildings. This is also a critical area of growth as the
industry shifts towards greener solutions. In 2024, our total GHG
emissions declined by 12%, and we have an ambition to further
improve our operations in line with our science-based targets.
Profitable growth
After two years of streamlining, H+H has evolved into a stronger,
leaner, and more resilient company, better positioned to navi-
gate future challenges and capitalise on a market rebound. The
adjustments we have made ensure sustained profitability, even
in a low-volume market, setting us up for long-term success.
Encouragingly, some markets are showing signs of recovery. In
the UK, we decided to reopen our mothballed plant in Pollington
in Q4 2024.
This will help meet rising demand and build stock in preparation for
further growth in 2025 and beyond.
I am excited about the next chapter for H+H. As we move forward,
both our customers and employees will harvest the rewards of our
hard work and dedication. I sincerely appreciate the efforts of our
employees and the loyalty of our customers—your support has been
invaluable. We look forward to building on this collaboration in 2025.
Jörg Brinkmann
Chief Executive Officer
After two years of streamlining, H+H has evolved into
a stronger, leaner, and more resilient company, better
positioned to navigate future challenges and capitalise on
a market rebound. The adjustments we have made ensure
sustained profitability, even in a low-volume market, setting
us up for long-term success
H+H International | Annual Report 2024 | 13In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
32 41 5 6
Equity Story
As a European leader in wall building, we are strategically positioned to capitalise on structural growth
drivers in the housing industry, including the shift towards modern and energy-friendly buildings. H+H's key
investment highlights build on six pillars:
Leading position in
wall building
With a leading market share,
strong plant network, solid
customer relationships and
high entry barriers, H+H is
positioned to grow its market
presence
Strong housing demand
waiting to be unlocked
H+H is well positioned to
capitalise on rising housing
demand across core
markets, where AAC and CSU
increasingly constitute the
materials of choice
Agile operating model to
meet future demand
The H+H Operating Model
of Excellence (‘HOME’) is
designed to meet Europe’s
volume demands by increasing
capacity within the existing
plant network
Material of choice:
today and tomorrow
Materials meet modern
housing needs and by
combining a decarbonisation
strategy with the recarbonation
properties of limestone, H+H
can produce blocks with a
negative carbon footprint
Platform for
future M&A
Proven M&A platform with
efficient integration processes
and an agile organisation,
allowing H+H to scale and
achieve synergies
Improving financial
performance and outlook
The company’s recent
streamlining has created
a more resilient business,
allowing H+H to better
withstand market fluctuations
and challenges
H+H International | Annual Report 2024 | 14In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Outlook
Organic growth
5% to 10%
(2024: 0%)
Revenue measured in local currencies is expected
to be in the range 5% to 10%.
EBIT before special items (DKKm)
120 to 180
(2024: DKKm 63)
EBIT before special items is expected to be in the
range of DKK 120 to 180 million.
Organic growth
Organic revenue growth for 2025 is expected to be in
the range between 5% to 10%, driven by price increases
aligned with cost inflation and modest volume growth,
primarily in the UK. The outlook does not assume a
market recovery in Germany.
EBIT before special items
EBIT before special items is expected to range between
DKK 120 to 180 million. The improvement over 2024 is
primarily driven by continued business streamlining,
modest volume growth, and impact from structural
improvements.
Other assumptions
• The 2025 average FX rates are based on February's
2025 actual average and the forward FX rates for the
next 10 months.
• CAPEX of around DKK 200 million.
• Stable macroeconomic and geopolitical development.
• Price dicipline within our key markets.
Forward looking statements
Forward-looking statements are subject to risks and uncertainties
that may cause the Group’s actual results to differ significantly
from those expressed in such statements. Therefore, they should
not be regarded as a guarantee of future performance. For the full
forward-looking statements disclaimer, please refer to page 2.
In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International | Annual Report 2024 | 15
Business and
strategy
17 Our industry
18 Our products
19 Business model
20 Strategic focus areas and progress
25 Long-term targets
H+H International | Annual Report 2024 | 16In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Our
industry
We are a leading European
provider of wall-building
solutions and materials, serving
contractors, developers, volume
housebuilders, and builders’
merchants.
Our industry is highly cyclical,
influenced by macroeconomic
fluctuations and evolving carbon
emissions regulations. At the
same time, the markets we
operate in are experiencing a
significant housing shortage,
driving demand for efficient and
sustainable building solutions.
An industry exposed to cyclicality
The industry is influenced by a range of factors,
including interest rates, which affect borrowing
costs for developers and buyers, and general
economic growth, which impacts demand for
housing. Population growth, urbanisation and
shifts in household formation also play a role in
driving the need for new homes. Additionally,
government policies, incentives and regulatory
frameworks, such as sustainability requirements,
influence the pace and focus of construction
activity across the regions.
In recent years, rising inflation and higher interest
rates have slowed building activity despite strong
housing needs. Weaker market conditions have
led to plant closures, production cutbacks and
workforce reductions, reducing capacity across
the sector. As the market stabilises, this contrac-
tion may create supply constraints when demand
recovers. Companies with resilient operations and
optimised production will be best positioned to
seize future growth opportunities.
Carbon-friendly wall-building solutions
To support sustainable development of housing,
the wall-building industry is met with more and
more tight requirements as regards to carbon
emissions.
The increasing focus on life cycle analysis – or
whole life carbon assessment – is a benefit for
AAC and CSU products, whether this is driven
by customer demands or legislation across our
markets.
The European Autoclaved Aerated Concrete
Association (EAACA) highlights that, through
the combination of the industry’s decarbonisa-
tion strategy and the carbon capture abilities of
limestone products as AAC and CSU, it is possible
to produce blocks that absorb more carbon
during its lifetime than what is emitted during the
production of the products. This reinforces the
fact that our products are, and will continue to
be, part of the solution for creating sustainable
housing.
The need for more homes
A significant housing shortage persists across all
our markets despite widespread political recog-
nition of this issue. Governments consistently fall
short of meeting their targets, with the UK aiming
for 300,000 new homes per year and Germany
targeting 400,000 annually.
While the industry has the capacity and expertise
to contribute significantly to solving the housing
shortage, unlocking this potential requires
broader changes at the macroeconomic or polit-
ical level. Policy adjustments, economic incen-
tives or regulatory reforms are essential to create
the conditions needed for scaling up housing
development and fully utilising the industry’s
capabilities.
H+H International | Annual Report 2024 | 17In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Our products
H+H's core activities are
the production and sale
of autoclaved aerated
concrete (AAC or aircrete)
and calcium silicate (CSU
or sand lime bricks).
The products are building
blocks used for wall
building, foundations
and precast wall panel
solutions, primarily in
the residential new-build
segment.
Key trends for building materials H+H product portfolio highlights
Highlights Products & services
Lasting durability, superior insulation and a reduced carbon footprint
through carbon capture storage
Easy to transport, to assemble and cost effective, offering speed
and low cost to maintain the wall
Superior fire resistance and structural engineering
ensuring enhanced safety
Advanced solutions accelerate serial construction by reducing labour
intensity, making it both faster and more cost-efficient
Planning tools optimising wall layouts to minimise on-site cutting, ensure
timely material deliveries and streamline the process from plan to wall
Autoclaved Aerated
Concrete (AAC), used for
single-family homes
Thermal block and
Multi-element to shorten
construction times
Calcium Silicate
Units (CSU), used for
multifamily urban housing
Planning Tool to minimise
planning effort
Long-lasting
Affordability
Safety
Standardisation
Digitalisation
H+H International | Annual Report 2024 | 18In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
• Sand, water and lime
• Cement and aluminium added
for AAC
• Strong plant network with
national coverage
• Lean manufacturing process to
improve efficiency and eliminate
waste
• Targeted capital investments
improve reliability and quality
across the production platform
• Continuous improvements to
deliver sustainable margins
• Full wall solution selling
• Support of customers in early
planning stage
• Optimisation of building process
• Cooperation with planners,
installers, architects, distributors
and house builders
• One-point of contact
• One-stop shop for wall building
• Reliable and timely delivery
• Multifunctional, easy-to-
install products with minimal
maintenance and cost-effective
materials
• Fire-resistant, rot- and mould-
proof product
• Long life-time expectancy
Partnerships Delivery Key featuresManufacturingKey raw materials
Efficient manufacturing
Attractive geographical setup
Partners in wall building
One-stop shop for every wall building project
Enabling better homes
Diverse and flexible solutions for various applications
Business model
The business model is prepared in accordance with SBM-1
We focus on providing safe and affordable
solutions and materials for wall building
H+H International | Annual Report 2024 | 19In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Strategic focus areas
and progress
H+H operates a balanced network of 27 plants across three core European markets, split into two
product lines. Over the past two years, we have optimised our production network, enhancing
efficiency and expanding capacity. Building on this foundation, we remain committed to growth
while prioritising employee safety and driving down CO
2
emissions.
HOME: H+H
Operating Model of
Excellence
Project ONE:
Improving process
landscape in CWE
Mission Zero:
Zero Harm and
Zero Carbon
HOME enhances efficiency, increases capacity
and optimises plant use. Our existing plant
network have the potential to deliver up to 6,000
tm³, representing a 30% increase in capacity from
today’s volumes. It engages employees, standard-
ises operations and drives continuous improve-
ment. Through lean manufacturing and debottle-
necking, HOME ensures high-volume production
and long-term scalability.
Project ONE is a targeted initiative in Germany
aimed at improving profitability by enhancing
customer experience and streamlining opera-
tions.
Project ONE also creates a strong framework for
efficiently integrating future acquisitions and joint
ventures.
H+H is committed to supporting the environ-
mental transformation of European cities by
developing energy-efficient, low-emission building
solutions. This is also a critical area of growth as
the industry shifts towards greener solutions.
We also prioritise safety, striving for a zero-in-
cident workplace for employees, visitors and
contractors, believing every accident is prevent-
able.
H+H International | Annual Report 2024 | 20In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
As a company operating in a cyclical industry,
we have a key focus on being able to adapt our
business to changing market conditions. Our
current plant network and production setup is
well-equipped to efficiently manage historically
high production volumes. The network presents
a valuable opportunity to realise further benefits
from our new operating model developed in 2024
and labelled the H+H Operating Model of Excel-
lence (HOME).
By consolidating production in larger, more
efficient plants, we can leverage economies of
scale to achieve cost savings while maintaining
peak output with fewer plants. Once HOME is
fully implemented, our existing plant network
will have the potential to deliver up to 6,000 tm³,
representing a 30% increase in capacity from
today’s volumes. This will be driven by increased
operational uptime and targeted debottlenecking
investments, ensuring sustained high-volume
production with a leaner footprint.
Implementation will commence in 2025 at
selected flagship sites, followed by a phased
rollout across the network.
HOME: H+H
Operating Model
of Excellence
These efforts aim to increase operational effec-
tiveness and expand capacity to better serve our
customers. Additionally, the operating model will
play a key role in realising synergies from future
strategic M&As, further consolidating and opti-
mising the network.
Streamlining
Over the past two years, our streamlining efforts
have led to significant financial improvements,
generating substantial cost savings compared to
2022. These efforts have positioned the company
to operate more effectively in a low-volume
scenario while enhancing resilience during busi-
ness cycles.
To further improve margins, we are committed
to continuous improvement initiatives aimed at
The main purpose of
the H+H operating model is:
• Engaging the workforce: Developing a
daily operational framework that actively
involves employees in driving improved
output - SBM-3
• Standardising operations: Establishing
consistent procedures, systems and a
portfolio of standard work for both oper-
ators and leaders to ensure alignment
across sites.
• Measuring and improving performance:
Introducing common critical metrics to
track and enhance operational perfor-
mance.
• Promoting continuous improvement:
Providing tools for problem-solving,
process optimisation and the sharing of
best practices, utilising the knowledge
and experience of our people - SBM-3
optimising asset utilisation and unlocking addi-
tional capacity, driving greater efficiency and
productivity. By adopting a lean manufacturing
approach, we are improving effectiveness and
operational uptime through targeted actions
that increase output, reduce waste and improve
product quality.
Similarly, targeted investments in debottlenecking
will provide significant steps towards meeting
increased demand. These investments require
relatively low capital expenditure and offer an
attractive payback period.
Looking ahead, these efforts will enable us to
meet growing demand, deliver the required
volumes to support our customers and deliver
excellent customer service.
Focusing on plant uptime in 24/7 growth mode to boost volume and
productivity through engaging first-line management with operators
Enhancing efficiency and reliability using lean tools, automation,
recipe optimisation and portfolio rationalisation
Strategic investments in specialised equipment to boost capacity
(step change) and enhance efficiency
Uptime
Continuous improvement
Debottlenecking
H+H International | Annual Report 2024 | 21In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
In 2018, H+H Germany began an M&A journey,
expanding from three to 14 plants by 2022
through five acquisitions and joint ventures. Each
brought its own culture, processes and complex-
ities, leading to higher operational costs. While
commercial integration occurred, full integration
was delayed during market growth.
With the market downturn in 2023-2024, stream-
lining became essential to create a unified
platform. Project ONE focused on automation,
simplicity and transparency, guided by lean meth-
odologies to reduce manual work, standardise
processes and streamline IT systems. With the
simplification and improvement of our operating
model we have enabled cost reductions and
increased administrative capacity, thereby opti-
mising the existing business for long-term growth.
A clearly defined operating model will also serve
as a strong blueprint for integrating future acqui-
sitions and joint ventures in the CWE region.
Deep dive – Project ONE
Project ONE has made
a real difference — fewer
manual tasks, clearer
processes and a
smoother workflow.
Everything is more
streamlined, allowing
us to focus on serving
customers better.
Michael Rygas, External
Sales, H+H Deutschland
During 2024, we launched Project
ONE, a targeted initiative in Germany
designed to improve profitability
within the region by enhancing
customer experience and having a
simpler, more streamlined company.
Over the past years, we have not
always fully capitalised on the
potential of our acquisitions. Project
ONE is designed to address this by
establishing a robust framework
for efficiently integrating future
acquisitions and joint ventures,
strengthening our ability to drive
consolidation and grow within
Germany.
Project ONE:
Improving CWE
Standardisation
Automation
Centralisation
Efficiency gains
Product offering streamlined
Number of carriers significatly reduced and
freight planning automated
Number of employees reduced by almost 40%
SG&A costs reduced by 50%
H+H International | Annual Report 2024 | 22In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Zero Harm - SBM-1 | ESRS 2 SBM-3
We believe that everyone should come to work
and return home free of injury. We are committed
to and have the ambition of zero harm for all who
work in our plants and on our sites.
In 2024, we launched our Health & Safety
strategy, ZERO HARM, for 2024-2026, focusing
on behaviour-based safety and on embedding a
safety-first culture across all operations. All plants
have implemented and monitor safety improve-
ment plans, supported by regular audits to ensure
effectiveness. Key H&S metrics are tracked
monthly, and lessons from incidents are shared
across the organisation to prevent recurrence.
Looking ahead, we are committed to further
strengthening our safety culture through proac-
tive training, communication and hazard identifi-
cation, driving progress toward our ultimate goal
of zero harm.
Our focus on safety delivered outstanding results
in 2024. We are proud to have achieved seven
consecutive injury-free months in 2024, with our
LTIF rate reaching a record low, from 3.4 in 2023
to 0.9 per million hours worked in 2024. These
achievements reflect the dedication of our teams
and the strength of our safety culture.
Mission Zero:
Zero Harm and Zero Carbon
Zero Carbon - SBM-1 | E1-1
Our vision for green transition and reducing our
carbon emissions is based on a whole life assess-
ment of our products. This is a process which
evaluates the effects that a product has on the
environment over the entire period of its life.
Our business model and strategy actively support
the green transition by reducing our carbon
emissions in alignment with our validated Science
Based Targets. From a whole life perspective we
want to achieve net zero emissions of our prod-
ucts and we believe that with our business model
and strategy, we will be able to achieve this by
2050.
In 2024, our carbon emissions fell to a record low.
Our plants are now consuming 100% renewable
electricity, and a dedicated amount of the CAPEX
budget is annually allocated to support emission
reduction projects.
We have successfully reduced our scope 1 and 2
by 13% compared to 2023 remaining well within
the 1.5-degree trajectory. Intensity of our scope 3
emissions were 1% lower compared to 2023 (and
11% lower compared to baseline 2019).
Our total GHG emissions were 483,205 tons,
which is 12% lower than 2023.
LTIF rate
Zero
incidents
100%
renewable electricity
12%
lower GHG emissions in total
than 2023
0
2014 2016 2018 20222020 2024
15
12
9
6
3
H+H International | Annual Report 2024 | 23In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
CO
2
Zero Carbon - SBM-1 | E1-4
Carbon capture storage inside (CCS inside)
Due to the natural carbon capture abilities of
our blocks, the whole life emissions for a block
become significantly lower as they absorb CO
2
during their lifetime.
Our AAC products act like a dried-out sponge –
absorbing CO
2
from the atmosphere. With the
improvement in sustainable production and
carbon capture and storage (CCS), we will be
able to produce blocks with a negative CO
2
foot-
print 10-20 years from now due to the carbon
capture process.
* Made from approximately 30 m
3
AAC blocks
A standard house* absorbs over
2.3 tons of CO
2
over its lifetime from aircrete,
equivalent to the absorption of
90 trees.
2019 – Starting point
When we started our SBTi journey, an average
H+H block emitted 210 kg CO
2
(gross) before
landing on a building site. With its natural
carbon capture storage (CCS) abilities, a
block would over a lifetime emit net 130 kg.
Scope 1+2+3 ~ 210
CCS ~ 75 kg
Whole life emissions ~ 130 kg (net)
2024 – Present
In the past five years we have improved our
emissions, reducing the amount by 31 kg
through renewable electricity and more effi-
cient production. Blocks produced in 2024
therefore already emit lower emissions
during their lifetime compared to blocks
produced in 2019.
Whole life emissions ~ 100 kg (net)
2030 – Target
We plan to improve our energy mix and
increase the use of low-carbon binder mate-
rials, giving a further reduction of 26 kg. In
2030, the whole life emissions of a block will
be approx. 75 kg.
Whole life emissions ~ 75 kg (net)
2050 – Vision
Based on roadmaps from our suppliers,
our blocks will from a whole life perspective
have a negative carbon footprint by latest
2050, positioning our products as the core
solution for sustainable wall building mate-
rials.
Whole life emissions ~ negative 50 kg (net)
H+H International | Annual Report 2024 | 24In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Long-term
targets
We remain committed to our long-term financial
targets. This is based on expectation of a market
recovery across our geographical footprint over
the coming years.
With current internal initiatives we will leverage
our asset base by consolidating volumes into
more efficient plants. This will also help us
become more resilient to swings in the macroeco-
nomic development.
Our sustainability commitment is supported by
validated reductions in scope 1, 2, and 3 GHG
emissions by 2030, with the ultimate goal of
achieving net zero no later than 2050.
.
Climate targets
Financial targets
EBIT margin
H+H commits to
reducing absolute
scope 1 and 2 greenhouse gas
emissions by
Return on invested capital
excl. goodwil
H+H commits to reducing
scope 3 greenhouse gas
emissions by
Financial gearing
Net interest-bearing debt to EBITDA
H+H commits to achieving
net zero emissions in our operations
and products by
by 2030 compared to 2019 per kg CO
2
e/m
3
by 2030 compared
to 2019
12%
46%
16%
22%
1-2x
2050
H+H International | Annual Report 2024 | 25In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Results
27 Full year financial review
29 Q4 2024 results
30 Geographical footprint
31 Central Western Europe
32 Poland
34 The United Kingdom
H+H International | Annual Report 2024 | 26In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Full year financial review
Income statement
Revenue
Total revenue increased by 3% to DKK 2,747
million compared to DKK 2,672 million in 2023.
Organic growth was 0% in 2024.
Organic growth was driven by higher sales
volumes and offset by sales prices and country
mix.
Revenue in Central Western Europe amounted to
DKK 1,030 million compared to DKK 1,256 million
in 2023. The decrease amounts to an organic
growth of negative 18%.
Revenue in the UK amounted to DKK 871 million
compared to DKK 763 million in 2023. Organic
growth was positive by 11%.
Revenue in Poland was DKK 846 million compared
to DKK 653 million in 2023. Organic growth was
positive by 23%.
Gross profit before special items
Gross profit was DKK 579 million compared to
DKK 564 million in 2023, corresponding to gross
margins of 21% in both 2023 and 2024. Both 2023
and 2024 were impacted by higher energy costs
related to the gas contract settled in Q1 2024.
2024 was also impacted by de-stocking initiatives,
offset by better utilisation of our plant network.
EBITDA bsi
EBITDA before special items in 2024 increased
by 3% to DKK 250 million compared to DKK 244
million in 2023, corresponding to EBITDA margins
of 9% in both 2024 and 2023.
Depreciation and amortisation
Depreciation and amortisation amounted to
DKK 187 million compared to DKK 187 million in
2023. Depreciation for buildings decreased as
a result of plants closed down during 2023 and
sold in 2024, while depreciation for machines and
production equipment increased as a result of
upgrades completed during the year.
EBIT bsi
EBIT before special items amounted to DKK 63
million compared to DKK 57 million in 2023, corre-
sponding to EBIT margins of 2% in both 2023 and
2024.
Special items
Special items costs, net amounted to an expense
of DKK 22 million in 2024 compared to an expense
of DKK 287 in 2023. Special items primarily
consist of the settlement costs of the gas
contract, restructuring costs, and gains from the
sale of land and buildings in Poland.
Please refer to Note 7 for more information.
EBIT
EBIT was DKK 41 million in 2024 compared to
negative DKK 230 million in 2023.
Net financials
Net financials amounted to an expense of DKK 70
million in 2024, compared to an expense of DKK
53 million in 2023. The development is mainly
driven by an increase in interest expenses from
higher interest rates and debt position during the
year.
Result before tax
Result before tax amounted to a loss of DKK 29
million compared to a loss of DKK 283 million in
2023.
Tax
Tax for the year amounted to a net expense of
DKK 21 million compared to a net income of DKK
37 million in 2023 driven by the improved result in
2024 compared to 2023.
Result for the year
Result for the year was negative DKK 50 million,
compared to negative DKK 246 million in 2023.
Loss for the period is attributable to H+H Interna-
tional A/S’ shareholders by DKK 53 million and a
profit to non-controlling interest by DKK 3 million
compared to a loss of DKK 248 million and a profit
of DKK 2 million, respectively, for 2023.
Comprehensive income
Other comprehensive income for 2024 was
positive DKK 25 million compared to DKK 3 million
in 2023. The year-on-year movement was a result
of actuarial gain net of tax of DKK 8 million and
loss in fair value adjustment of derivative finan-
cial instruments of negative DKK 3 million and a
positive development in foreign exchange rates of
DKK 20 million.
H+H International | Annual Report 2024 | 27In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Cash flow
Operating activities
Cash flow from operating activities before finan-
cial items and tax amounted to cash in-flows
of DKK 279 million in 2024 compared to cash
out-flows of DKK 110 million in 2023. The improve-
ment in operating cash flows is mainly due to
improved earnings and destocking initiatives.
Total cash flow from operating activities in 2024
was a cash in-flow of DKK 145 million compared to
a cash out-flows of DKK 209 million in 2023.
Investing activities
Cash flow from investing activities in 2024
amounted to a net cash in-flow of DKK 74 million
compared to a net cash out-flow of DKK 137
million in 2023. The cash in-flow in 2024 is mainly
driven by the sale of land of buildings in Poland
offset by CAPEX investments.
Financing activities
Cash flow from financing activities amounted
to cash in-flows of DKK 103 million in 2024
compared to cash in-flow of DKK 131 million in
2023.
Balance sheet
On 31 December 2024, the balance sheet total
amounted to DKK 3,473 million compared to DKK
3,454 million on 31 December 2023 mainly driven
by shifts in the net debt position partly offset by a
decrease in inventories of DKK 222 million.
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 682
million as of 31 December 2024 corresponding to
a decrease of DKK 205 million since 31 December
2023.
On 31 December 2024, financial gearing was 2.7
times net interest-bearing debt to EBITDA before
special items.
The decrease in net interest-bearing debt since
the beginning of the year was primarily driven by
positive net working capital development from
inventory reductions and the sale of land and
buildings in Poland.
Equity
The consolidated equity decreased by DKK 28
million compared to 31 December 2023. Equity
attributable to H+H International A/S’s share-
holders and non-controlling shareholders was
DKK 1,566 million and DKK 84 million, respec-
tively.
Management review for the parent company
Result for the year was negative by DKK 267
million compared to DKK 125 million in 2023. The
decrease is due to a write-down of investment in
subsidiaries after the restructuring of the German
business.
Events after the balance sheet date
No events have occurred after the balance sheet
date that would materially impact the assessment
of the consolidated financial statements.
Follow-up on financial outlook
During 2024, H+H adjusted its outlook for organic
revenue growth and EBIT margin before special
items (bsi) on one occasion for organic growth
and twice in total for EBIT bsi.
In August, we revised our guidance for organic
growth to around 0% from the previous range
of -5% to +5%. Additionally, our EBIT bsi was
adjusted to DKK 50–100 million from DKK 50–150
million due to low market activity in Germany and
the temporary closure of the Borough Green plant
in the UK.
In November, the EBIT bsi range was narrowed to
DKK 50–80 million from DKK 50–100 million.
H+H International | Annual Report 2024 | 28In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Q4 2024 results
2024 2023
(DKK million) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Income statement
Revenue 649 729 725 644 601 699 731 641
Gross profit bsi 164 174 132 109 94 138 178 154
SG&A 83 82 85 81 82 83 98 83
EBITDA bsi 82 101 41 26 32 53 87 72
EBIT bsi 36 53 (5) (21) (15) 13 38 21
Result after tax for the period 90 19 (29) (130) (109) (29) (101) (7)
Balance sheet
Invested capital 2,146 2,242 2,330 2,405 2,435 2,405 2,341 2,223
CAPEX 56 24 40 36 67 40 45 45
Net working capital 144 212 287 390 359 437 534 540
Equity 1,650 1,546 1,543 1,560 1,678 1,760 1,787 1,901
Net interest-bearing debt (NIBD) 682 887 993 1,006 887 844 875 804
Cash flow
Cash flow from operating activities 19 135 56 (65) (1) 87 (23) (272)
Cash flow from investing activities 147 (13) (34) (26) (22) (33) (45) (37)
Cash flow from financing activities 43 (32) (30) 122 (70) (19) 52 168
Free cash flow 166 122 22 (91) (23) 54 (68) (309)
Financial ratios and others
Sales volume (thousand m
3
) 694 775 779 719 648 740 723 634
Organic growth 6% 2% (3%) (4%) (26%) (24%) (26%) (25%)
Gross margin bsi 25% 24% 18% 17% 16% 20% 24% 24%
EBITDA margin bsi 13% 14% 6% 4% 5% 8% 12% 11%
EBIT margin bsi 6% 7% (1%) (3%) (2%) 2% 5% 3%
Note: Q4 2024 results are unaudited
Comments relating to the fourth quarter of 2024
Revenue
Total revenue increased by 8% to DKK 649 million compared to DKK 601 in 2023. Organic
growth was positive 6% driven by higher volumes offset by mix effects.
Gross profit before special items (bsi)
Gross profit was DKK 164 million, compared to DKK 94 million in 2023, corresponding to
gross margins of 25% and 16%, respectively. The increase in gross profit margin was driven
by lower energy costs, including the impact of an unfavourable gas contract in 2023.
EBIT before special items (bsi)
EBIT bsi was DKK 36 million in 2024 compared to negative DKK 15 million in 2023, corre-
sponding to EBIT margins of 6% and negative 2%, respectively.
Special items
Special items income of DKK 129 million for Q4 2024 mainly relates to the gain on sale of land
and buildings in Poland partly offset by restructuring costs in Germany of DKK 27 million. For
details, see Note 7.
Result after tax
Result after tax for Q4 2024 was a profit of DKK 90 million, compared to a loss of DKK 109
million in Q4 2023.
Cash flow from operating activities
Cash flow from operating activities amounted to a cash in-flow of DKK 19 million in Q4 2024
compared to a cash out-flow of DKK 1 million in Q4 2023. Development in operating cash flow
is driven by higher earnings for the period.
H+H International | Annual Report 2024 | 29In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
1,030
DKKm
871
DKKm
846
DKKm
Central Western Europe
37%
The United Kingdom
32%
Poland
31%
Geographical
footprint
We have a diversified geographical footprint
with our activities spread across three core
regions, namely Central Western Europe
(comprising Germany, the Nordics, the
Benelux countries, the Czech Republic
and Switzerland), the United Kingdom and
Poland. We have a leading position in most
of our markets with solid market shares and
strong customer relationships.
Share of Group revenue in 2024 (DKKm)
Aircrete plants
14
Calcium silicate plants
13
H+H International | Annual Report 2024 | 30In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2020 2021 2022 2023 2024
308,054
319,734
296,280
204,524
164,894
-19 %
Central Western Europe
Germany is the largest market within
H+H’s CWE region, with significant
growth potential once regulatory
and macroeconomic conditions
improve. The organisation has
been streamlined to capitalise on
this recovery, although the timing
remains uncertain. In adjacent
markets, including Switzerland, the
Nordics and the Benelux, there is
more optimism, albeit with moderate
growth rates.
Market development
The German housebuilding industry continued to
be impacted by the ongoing economic recession.
The number of building permits issued declined
by 19% compared to 2023, reflecting difficult
market conditions and a general slowdown in
construction activity.
Looking ahead, 2025 is unlikely to see significant
growth in construction activity, as the broader
economy is expected to remain flat. Persistent
Source: Statistisches Bundesamt
inflationary pressures, energy supply challenges,
and the absence of effective government support
programmes have further weakened the invest-
ment climate, making it unlikely that housing
targets will be met without substantial policy
interventions. In February, the German election
took place, and it remains to be seen what meas-
ures the new government will introduce before
any firm conclusions can be drawn. However, if
financing conditions improve and investor confi-
dence strengthens, gradual market stabilisation
could lay the foundation for a more sustained
recovery in the longer term.
2024 results and key developments
Revenue in Central Western Europe amounted
to DKK 1,030 million compared to DKK 1,256
million in 2023. The decrease amounts to negative
organic growth of -18% mainly driven by lower
sales volume.
Against this backdrop, we focused on optimising
the cost structure to drive long-term efficiency.
As part of this effort, we launched Project ONE,
a strategic initiative aimed at enhancing prof-
itability, improving customer experience, and
streamlining operations. This project reflects our
commitment to bringing CWE’s costs in line with
our Poland and UK businesses representing a
significant turnaround in this region.
Other markets
In the Nordics, construction activity declined in
2024 due to high interest rates and market uncer-
tainty, but H+H maintained strong partnerships
and market presence. Switzerland saw moderate
growth as inflation eased and interest rates fell,
with a stronger expansion expected in 2025. The
Benelux market remained stable in 2024 despite
economic uncertainties. H+H maintained its
strong position through customer collaboration
and efficiency. With improving economic condi-
tions expected in 2025, there is optimism for
renewed growth in the region.
Organic growth
-18%
H+H market share AAC
~20%
H+H market share CSU
~15%
Market position
#2
Building permits, Germany
H+H International | Annual Report 2024 | 31In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2020 2021 2022 2023 2024
290,661
276,154
341,041
297,985
241,569
20%
Poland
Source: Statistics Poland
Polish building activity experienced
a strong recovery, driven by
robust underlying demand and
further boosted by a government
subsidy programme. The market
has remained strong after the
programme expired. In 2025,
expected interest rate cuts from the
Polish central bank are anticipated
to support continued strong building
activity.
Market development
Polish building activity experienced a strong
recovery in 2024, driven by robust underlying
demand and further supported by the govern-
ment’s 2% loan support programme. The
programme had a significant impact on the devel-
oper segment, particularly in the first quarter,
contributing to a 20% increase in building permits
in 2024 compared to 2023.
While demand slowed towards the end of the year
as the programme was phased out, the underlying
fundamentals of the Polish market remained
strong.
Looking ahead to 2025, government initiatives
will remain key drivers of market momentum.
Additionally, anticipated interest rate cuts from
the central bank are expected to sustain strong
building activity in Poland.
Beyond government support, the Polish housing
market continues to face a structural undersupply
of homes, driving long-term demand. Rising
wages and improving consumer sentiment could
further boost residential construction, while
developers are likely to accelerate projects in
response to more favourable financing conditions.
These factors position Poland as a key growth
market in the coming years.
2024 results and key developments
Revenue in Poland reached DKK 846 million in
2024, up from DKK 653 million in 2023, reflecting
organic growth of 23%. This was driven by strong
sales activity, particularly in the first half of the
year, supported by the government’s 2% loan
support programme.
A key development in Q4 2024 was the announce-
ment of the sale of the closed Warsaw plant
to a Polish residential developer for PLN 110
million, as part of the plant network restructuring
programme initiated in 2023. While the Warsaw
facility has now closed, H+H Poland remains fully
committed to the market. The Warsaw region
is now supplied from nearby plants, ensuring
efficient distribution, reliable service, and a
continued strong presence in this strategically
important area.
Building permits, Poland
Organic growth
23%
H+H market share AAC
~20%
H+H market share CSU
~25%
Market position
#2
H+H International | Annual Report 2024 | 32In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Our plant in Zelisławice is the leader not only in terms of safety but also in the efficiency
of the production process among our 11 plants in Poland. The site has shown that
leadership, engagement and involvement are key attributes in delivering our goal of
zero harm
Piotr Dauksza
Managing Director for H+H Polska
Deep dive
10 years without incidents
In 2025 our AAC plant in Żelisławice, Poland,
achieved the significant milestone of operating
10 years without any lost time incidents (LTIs).
This could only be achieved by demonstrating a
commitment, passion and energy every day to
sustain zero harm.
Over the past 10 years the plant and its employees
have continuously obtained improvements in their
pursuit of safety excellence. The key focus has
been on embedding safety into the DNA of the site
through a wide variety of initiatives implemented
by management.
These range from developing core H&S
processes, running all day ‘Safety Day’ events,
embedding standardised processes and ensuring
that all shift supervisors participate in ‘Leading in
Safety’ workshops. By being proactive we take the
lead in ensuring our workforce is made aware of
and understand the hazards and risks in the world
of work at Żelisławice.
The continuous improvement is demonstrated by
the Self-Assessment and Group Maturity Audit
process as well as being internally recognised as
being ‘Best in Class’ within H&S.
The work done in Zelislawice follows
our five strategic themes towards
zero harm:
• Leading in Safety
• Behaviour-Based Safety
• Engineering Critical Safety Equipment
• Embedding Safe Working Instructions
• Safety Improvement Plans
Picture showing the safety board in Zelislawice reaching 10 years with no accidents.
H+H International | Annual Report 2024 | 33In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2020 2021 2022 2023 2024
104,232
121,993
152,472
189,009
105,449
-1%
The United Kingdom
Total newbuild registrations
Organic growth
11%
H+H market share AAC
~45%
Market position
#1
Source: National House Building Council (NHBC)
Political building ambitions are set
to drive long-term growth in the UK
market, although a ramp-up period is
anticipated in 2025. To align supply
with demand, H+H reopened the
mothballed Pollington plant late in the
year, ensuring readiness for future
expansion.
Market development
During the first half of the year, prevailing market
conditions, including the Bank of England’s base rate
increases, drove mortgage rates higher, reducing
demand for new homes and slowing house price
growth. However, the second half of the year
showed signs of recovery, with quarter-on-quarter
growth in new home registrations and mortgages
rates, a positive trend influenced by interest rate
cuts and improved consumer confidence. Overall,
building registrations remained in line with 2023
with some evidence of increased on-site activity
and an emerging sense of cautious optimism
among housebuilders.
The British government must address the struc-
tural undersupply of housing while working
towards its target of delivering 1.5 million new
homes over five years. Expanding the housing
stock is essential, and achieving this goal will
require a further increase in registrations,
supported by lower interest rates and improved
market confidence. The funding announced by
Chancellor Rachel Reeves in her first Autumn
Budget was widely welcomed and is expected
to have a positive long-term impact on housing
supply.
Looking ahead, the combination of gradually
improving affordability, sustained government
support, and increased developer confidence
positions the UK market for moderate but steady
growth into 2025. Further rate cuts and policy
clarity on long-term housing supply strategies will
be critical in sustaining this momentum.
2024 results and key developments
Revenue in the UK amounted to DKK 871 million
compared to DKK 763 million in 2023. Organic
growth for the year was 11%, driven by stable
pricing and demand recovery in the latter half of
the year.
The combination of rising demand, particularly in
private housebuilding, and the unexpected produc-
tion halt at Borough Green in July 2024 led H+H UK
to reopen its mothballed plant in the north during
Q4 2024. This strategic move ensures continued
supply, supports the growing market, and enhances
production capacity. By restarting operations, H+H
UK strengthens its ability to meet customer needs
while building stock in anticipation of further growth
in 2025 and beyond.
H+H International | Annual Report 2024 | 34In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Governance
36 Corporate governance
40 Board of Directors
42 Executive Board
43 Shareholder information
45 Risk management
H+H International | Annual Report 2024 | 35In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Corporate governance
Governance structure - GOV-1
The general meeting is the supreme governing body of H+H Inter-
national A/S where shareholders can exercise their rights. At the
annual general meeting shareholders consider the annual report,
the remuneration report, the election of Board of Director members
and the election of auditor, changes to the Articles of Association as
well as any other agenda items proposed by the Board of Directors or
shareholders. The authority of general meetings and the formalities
relating to general meetings are set out in the company’s Articles of
Association available on the Group website.
Election of a member to the Board of Directors requires simple
majority of votes, and decisions to make amendments to the Articles
of Association requires at least two-thirds of the votes cast as well as
of the share capital represented at the general meeting.
H+H International A/S has a two-tier management system consisting
of the Board of Directors and the Executive Board. The Board of
Directors supervises the work of the Executive Board and is respon-
sible for the Group’s strategy and overall organisation, management,
and capitalisation. The Executive Board is responsible for the execu-
tion of the strategy and the day-to-day management. The organisa-
tion and operation of the Board of Directors are set out in the Rules of
Procedure for the Board of Directors, and similarly the organisation
of the Executive Board and its co-operation with the Board of Direc-
tors are set out in Rules of Procedure for the Executive Board.
The current Articles of Association state that the Board of Direc-
tors must consist of 4-8 members elected at a general meeting.
Currently, the Board of Directors consists of 7 members. The term of
all board members expires at each annual general meeting, but each
member may be re-elected for a new term. It is stipulated in the Arti-
cles of Association that a board member may not also be a member
of the Executive Board.
To support the work of the Board of Directors, the Board of Direc-
tors has established three board committees, namely the Audit
Committee, the Remuneration Committee, and the Nomination
Committee. The board committees are not authorised to make inde-
pendent decisions but shall report and provide recommendations
to the Board of Directors. The members of each board committee,
including the committee chair, are each appointed by the Board of
Directors on the basis of their specific competences.
Key activities 2024 - Board of Directors - GOV-1
• Review and update of strategy and business plan
• Monitoring of the execution of the Group health & safety strategy
'ZERO HARM'
• Monitoring of the execution of the new Group operational model
HOME, including approval of related CAPEX projects to increase
production capacity for the involved plants
• Approval of sale of idle assets related to the plant closures
executed as part of plant network efficiency actions, including
approval of the sale of buildings and land in Warsaw after closure
of the Warsaw plant
• Monitoring of the execution of Project ONE aimed at integra-
tion and harmonisation of the German business and financial
processes to release synergies stemming from the acquisitions
since 2018
• Monitoring of the execution of measures and related CAPEX imple-
mentations in pursuit of the CO
2
targets set under the Zero Carbon
strategy
• Review of IT and cyber security, including cyber security training
and readiness
• Unplanned board meetings to monitor the measures taken to
resolve a sudden ordered stop to the operation of all autoclaves at
the Borough Green plant in the UK
• Board evaluation process facilitated by an external expert
H+H International | Annual Report 2024 | 36In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Key activities 2024 - Audit Committee - GOV-1
• Oversight of enterprise risk management, including risk categories
and revision of the operational hedging policy
• Monitoring of group insurance strategy, coverage, and pricing
• Monitoring sustainability reporting process, including review of the
double materiality assessment and planning of the first full limited
assurance of the sustainability statement etc.
• Monitoring financial annual and interim reporting process,
including treatment and estimates, accounting policies and the
integrity of the reporting process, as well as review of the audit
strategy
Key activities 2024 - Nomination Committee - GOV-1
• Recruitment of new CFO
• Arrangement and execution together with the assistance of an
external expert of the annual evaluation of the Board and of the
Executive Board and their co-operation as well as the Board's
collective and the board members' individual competences
• Arrangement of recruitment processes for potential new board
members to be proposed for election at the next annual general
meeting in April 2025 (ongoing into 2025)
Key activities 2024 - Remuneration Committee - GOV-1
• Annual review of the Remuneration Policy for the Board of Direc-
tors and the Executive Board and presentation to the Board of
Attendance rates for board and committee meetings in 2024
Board
Member
since
Meeting
Attendance
Audit
Committee
Meeting
attendance
Nomination
Committee
Meeting
attendance
Remuneration
Committee
Meeting
attendance
Kent Arentoft 2013 8/9 1/1 1/1
Miguel Kohlmann
2018 8/9 1/1 1/1
Stewart A Baseley
2010 9/9 1/1
Volker Christmann
2017 9/9 4/4
Kajsa von Geijer
2022 6/9 4/4 1/1
Helen MacPhee
2019 8/9 4/4
Jens-Peter Saul
2023 8/9 1/1 1/1
Chair Vice Chair Member
* The participation rates for 2024 were below normal for most board members, which is due to there being four unplanned board meetings each held with very short notice over a one week period in July 2024, where many board members were on holiday.
Looking at the pre-planned five board meetings, the attendance rates were at 100% for all board members, except for Kajsa von Geijer with an attendance rate at 80% (i.e. absent from one of five board meetings).
Directors of proposed changes which were presented at the annual
general meeting in April 2024
• Review of the Remuneration Report for 2023
• Review of and proposal for the fees for 2024 to the Board of Direc-
tors and presentation to the Board of Directors of the fee proposal
which were presented at the annual general meeting in April 2024
• Review of the actual remuneration for 2023 to the Executive Board
and proposal for adjustments to the Board of Directors
• Review of outcome under the incentive programs vesting in 2024
and proposal to the Board of Directors of KPIs and targets for the
short-term and long-term incentive programmes starting in 2024
H+H International | Annual Report 2024 | 37In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Board diversity - GOV-1
The Board seeks to be diverse in the broadest sense relevant, recog-
nising the benefits of diversity in terms of cultural background,
gender, age etc.. When deciding whether to propose re-election or
not of board members as well as when searching for candidates to
propose as new board members, the decision is based on filling out
relevant competence gaps or strengthening specific competences in
the Board.
Board diversity by the end of 2024
Nationality & residence
*
Brazil (1) / Denmark (1) / Germany (3) / Sweden (1) / Switzerland (1) / United Kingdom (3)
Board tenure (years)
1-5 (2) / 6-10 (3) / 11-15 (2)
Board independence rate
86% (2023: 86%)
Age distribution (years)
55-59 (2) / 60-64 (3) / 65-69 (2)
Gender
Female (2) / Male (5) - average ratio of 29%
Educational backgrounds
Business Administration, Controlling and Auditing / Mechanical Engineering / Economics
/ Strategy and Management / Financial and Management Accounting / Human Resource
Management
Current Board competence profile - GOV-1
Individual competences:
• International and business-minded
• Analytical and strategic
• High integrity and accountability
• Team-oriented
Collective board competences:
• International top management
• Production & sales in building industry
• Supply chain management
• Health & safety
• Sustainability / ESG
• HR and compliance
• Finance and accounting
• Enterprise risk management
• IT, AI and cyber security management
• Strategy development
• Change management
• M&A, divestments etc.
• Investor relations and capital markets
• Corporate governance
H+H has since the annual general meeting on 31 March 2022 had
equal gender distribution in our Board of Directors, as defined by the
Danish Business Authority. For this reason, no formal gender target
under the law is set. However, when the Board as part of its annual
board evaluation decides to want to change its composition, the
possibility to improve especially the Board’s gender diversity and age
profile will naturally be pursued. Hence, If two candidates for a board
position are equally competent, the person improving the gender
and/or age diversity will be preferred.
Board evaluation - GOV-1
The Board of Directors’ annual evaluation procedure for 2024 was
conducted by an external expert who had one-on-one meetings with
each member of the Board of Directors as well as with each member
of the Executive Board.
The Board then held a board meeting without the presence of the
Executive Board where the external expert presented input and
findings followed by private discussions in the Board of Directors to
discuss the findings and agree on conclusions and action points. The
issues evaluated included discussions and decisions regarding e.g.:
• the board composition (diversity gaps in regard to competences,
gender, age, board continuity etc. and the size of the Board)
• the board structure (review of the chairship and the board
committee structure)
• the board performance (collective and individual performance)
• co-operation between the Board and the Executive Board (collec-
tive and individual performance, co-operation inside and outside of
board and board committee meetings) and
• potential changes to the size of the Board, the individual board
members, inclusion of new board members and related candidate
profiles and use of headhunters etc.
The expert summarised the work of the Board as being based on a
high level of trust and collaboration. Board members were all well
prepared and had a high participation rate for all planned meetings,
indicating that no board members were overboarded. The Board
found having a Chairship to be an effective way to manage the Board.
The Board also found there to be good and relevant diversity in
respect of competences and the spread in board tenure, ensuring
both continuity and renewal. The co-operation between the Board
and the Executive Board functioned well and the Executive Board
said it benefitted from having board members that collectively repre-
* Two board members have dual citizenship
H+H International | Annual Report 2024 | 38In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
sented very diverse and relevant competences with regard to special
subject matters, industries, country market experience, and cultural
insights.
Remuneration
Remuneration of the Board of Directors and the Executive Board
is paid in line with the H+H Remuneration Policy for the Board of
Directors and Executive Board adopted by the general meeting. The
Remuneration Policy will be reviewed and presented for approval at
the annual general meeting for 2025. H+H reports on remuneration
in an annual Remuneration Report presented to the shareholders at
the annual general meeting for an advisory vote. The Remuneration
Report for 2024 and the present Remuneration Policy are available
on the Group website.
Annual corporate governance statement
As a listed company on NASDAQ Copenhagen, H+H International
A/S reports annually on the recommendations on corporate govern-
ance. These are issued by the Committee on Corporate Governance
together with a description of the internal control and risk manage-
ment system relating to the financial reporting as required under
Section 107(b) of the Danish Financial Statements Act. The reporting
is done in an annual Corporate Governance Statement available on
our Group website. We comply with all recommendations.
Report on data ethics
The following makes up the data ethics report required under Section
99(d) of the Danish Financial Statements Act.
H+H’s Data Ethics Policy has as its overall objective to encourage and
motivate all our employees to handle data with the utmost care and
respect and to follow our guiding principles on data use and ethics.
We are committed to complying with all applicable personal data
protection laws. We run internal audit controls to secure compliance
with both information security and data protection requirements,
and all employees developing, purchasing or otherwise working with
technology and data science-based uses of data must be informed
about the data ethics principles. We do not purchase, sell or broker
data or otherwise profit from separate data transfers from or to third
parties. We do not currently carry out data processing using artifi-
cial intelligence, such as machine learning, as a natural part of our
business.
Our Data Ethics Policy can be found on the Group website,
H+H International | Annual Report 2024 | 39In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Board of Directors
Kent Arentoft, Chair Miguel Kohlmann, Vice Chair Stewart Antony Baseley
Male. Born 1962. Danish. Male. Born 1962. German/Brazilian. Male. Born 1958. British.
Chairman of DSVM Invest A/S and subsidiaries. Professional board member and advisor. Chairman of Highlander Partners (CEE) and board member of five subsidiaries (Romania)
and two subsidiaries (UK)
Independent
Member and Chair since 2013
Chair of the Nomination Committee
Independent
Member since 2018 and Vice Chair since 2024
Chair of the Remuneration Committee
Member of the Nomination Committee
Not independent (more than 12 years board tenure)
Member since 2010
Member of the Nomination Committee
H+H shareholding
Holds 60,000 H+H shares via a company he controls
No changes made in 2024
H+H shareholding
Does not hold any H+H shares
No changes made in 2024
H+H shareholding
Holds 22,500 H+H shares
No changes made in 2024
Areas of expertise
Broad organisation and management experience in international companies in the building
materials and contracting sector, particularly within strategy development and M&A transac-
tions.
Areas of expertise
Extensive management experience in global building materials production and other global
industries. Worked in controlling, sales, production, and general management.
Areas of expertise
Experience in the international housebuilding industry and the developer industry, particularly
in the UK, as well as international management experience.
Other management positions and directorships
Chairman of MAAG Gear AG
Chairman of Geveko Group AB
Board member of Igne Group Limited.
Other management positions and directorships
Chairman of the Board of Directors of Archroma Holdings SARL (Luxembourg) and NMC
International S.A. (Luxembourg).
Member of the Advisory Board of Pfleiderer GmbH (Germany) and Paul Bauder GmBH
(Germany).
Other management positions and directorships
Chairman of Home Builders Federation and board member of four subsidiaries (UK)
Chairman of Troy Homes Limited (UK)
Patron of Children with Special Needs Foundation (UK)
GOV-1 – The role of the administrative, management and supervisory bodies
H+H International | Annual Report 2024 | 40In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Volker Christmann Kajsa von Geijer Helen MacPhee
Male. Born 1957. German. Female. Born 1964. Swedish. Female. Born 1962. British.
Managing Director, Senior Vice President Insulation Central Europe, Member of Group
Management of ROCKWOOL A/S. Chairman of the Board of Directors of two companies in
the ROCKWOOL Group, Managing Director of five companies in the ROCKWOOL Group and
member of the Board of Directors of ROCKWOOL Foundation.
Professional board member and advisor. Senior Vice President of Finance, AstraZeneca plc (UK).
Independent
Member since 2017
Member of the Audit Committee
Independent
Member since 2022
Member of the Audit Committee
Member of the Remuneration Committee
Independent
Member since 2019
Chair of the Audit Committee
H+H shareholding
Does not hold any H+H shares
No changes made in 2024
H+H shareholding
Does not hold any H+H shares
No changes made in 2024
H+H shareholding
Does not hold any H+H shares
No changes made in 2024
Areas of expertise
Extensive experience within the building materials production sector of Central Europe,
particularly in Germany, as well as within financial auditing and controlling.
Areas of expertise
International experience within strategic and operational HR, sustainability, ESG and general
compliance.
Areas of expertise
Extensive experience within strategic and operational finance. International experience in
change management, financial oversight and control, management of large-scale ERP imple-
mentation projects, governance, and risk frameworks.
Other management positions and directorships
Chairman of the Board of Directors of BuVEG
(Bundesverband energieeffiziente Gebäudehülle) (Germany).
Member of the Board of Directors of FIW
(Forschungsinstitut für Wärmtechnik) (Germany).
Other management positions and directorships
Member of the Advisory Committee of Solix Group AB (Sweden) and of one its subsidiaries.
Other management positions and directorships
N/A
Board of Directors – continued
GOV-1 – The role of the administrative, management and supervisory bodies
H+H International | Annual Report 2024 | 41In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
GOV-1 – The role of the administrative, management and supervisory bodies
Jens-Peter Saul
Male. Born 1966. German/British.
CEO of Ramboll Group A/S, Denmark
Independent
Member since 2023
Member of the Nomination Committee
Member of the Remuneration Committee
H+H shareholding
Holds 6,259 H+H shares
No changes made in 2024
Areas of expertise
Extensive international experience in particular within strategy development and ex-
ecution to accelerate organic and acquisitional growth and to maximise investments,
as well as broad insights into sustainability and the green energy transition. Experi-
ence from diverse industries such as infrastructure, energy, construction, investment,
manufacturing and trading.
Other management positions and directorships
Member of the Board of Directors of Cubico Sustainable Investments Limited (UK).
Board of Directors
– continued
Executive Board
Jörg Brinkmann Bjarne Pedersen
Male. Born 1979. German. Male. Born 1977. Danish.
CEO since 2022 CFO since 2024
H+H shareholding
Holds 21,300 shares
7,300 were purchased in 2024
H+H shareholding
Holds 10,141 shares
No changes made in 2024
Background
2018-2022: Managing Director, Europe of James Hardie Europe, GmbH (Germany)
2014-2018: CEO of Fermacell, GmbH (Germany)
2011-2014: Sales Director of Fermacell, GmbH (Germany)
2005-2011: Head of Marketing at Xella Group, GmbH (Germany)
Background
2019-2024: Chief Strategy Officer in H+H (Denmark)
2014-2019: Investor Relations and Business Development, H+H International A/S (Denmark)
2008-2014: Various IT and Finance postions in H+H International A/S (Denmark)
2006-2008: Global Cash management in Danske Bank (Denmark)
2005-2006: IT Consulting Project Manager at e-conomic A/S (Denmark)
1998-2005: Auditor at Pwc (Denmark)
Education
MSc (Business Administration)
PhD Economics
Education
MSc (Business Economics and Auditing)
Other management positions and directorships
N/A
Other management positions and directorships
N/A
H+H International | Annual Report 2024 | 42In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Shareholder information
H+H International A/S is listed on the
Nasdaq Copenhagen stock exchange
and is trading under the ticker
symbol HH.
Share-price development
The H+H International A/S shares started the
year at a price of DKK 88.80 and closed the year
at a price of DKK 78.70, representing a decrease
of 11%. At the end of the year, the total market
value of H+H amounted to DKK 1,298 million. The
highest traded price during 2024 was DKK 109.4
on 7 June and the lowest traded price was DKK
65.6 on 15 March.
Share capital and treasury shares
H+H's shares are listed on the Nasdaq Copen-
hagen stock exchange and consists of 16,500,000
shares each valued at DKK 10, with uniform voting
and dividend rights. By the fiscal year's end, H+H
held 162,049 treasury shares, representing 1% of
its share capital.
Composition of shareholders
On 31 December 2024, H+H had more than 5,500
registered shareholders. Major shareholders
owning more than 20% of the total share capital
and votes were Solbet Sp. z o.o., Poland. Major
shareholders owning more than 5% but less
than 10% of the total share capital and votes
were Nordea Funds Ltd., Finland, ATP Arbejds-
markedets Tillægspension, Denmark, and BI
Asset Management Fondsmæglerselskab A/S,
Denmark. The majority of the share capital is
held by Danish investors. Other key markets
are Poland, the United Kingdom, and the United
States.
Capital allocation
Our free cash flow allocation priorities are
unchanged from previous years:
1. Repay of net interest-bearing debt in periods
when the financial gearing ratio is above the
long-term target range;
2. Pursuit of value-adding investments in the form
of acquisitions or development of the existing
business; and
3. Distribution of capital to the shareholders by
means of share buy-backs and/or dividends.
For the time being, we expect to use the free
cash flow to repay debt to lower the gearing to
within the long-term target ratio of 1-2x net inter-
est-bearing debt to EBITDA before special items.
Major shareholders per 31 December 2024
Solbet Sp. z o.o., Poland > 20%
Arbejdsmarkets Tillægspension, Denmark >5%
Nordea Funds Ltd., Finland >5%
BI Asset Management Fondsmæglerselskab A/S, Denmark >5%
Denmark - 57%
Poland - 23%
United Kingdom - 7%
United States - 3%
Others - 10%
Geographical distribution
of shareholders
Share information
Exchange Nasdaq Copenhagen
ISIN code DK0015202451
Ticker symbol HH
No. of shares 16,500,000
Denomination DKK 10 per share
Share capital DKK 165,000,000
Voting rights One vote per share
H+H International | Annual Report 2024 | 43In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
H+H International A/S OMX Copenhagen Mid-Cap PI (re-based)
January February March April May June July August September October November December
40
60
80
100
120
Annual general meeting
The next annual general meeting (AGM) is sched-
uled for 8 April 2025 at 11.00 a.m. at Copenhagen
Marriott Hotel, Copenhagen. Further details are
published through a company announcement and
on our group website no earlier than five to three
weeks before the AGM. AGM documents will be
accessible on our group website once the notice is
published. Amendments to the Articles of Asso-
ciation require the resolution is passed by at least
two-thirds of the votes cast as well as of the share
capital represented at the AGM.
Investor Relations - SBM-2
The purpose of our financial communications
and other investor relations activities is to ensure
that relevant, accurate and timely information is
made available to the stock market to serve as a
basis for regular trading and a fair pricing of H+H
shares.
To ensure that capital market participants,
including current and prospective investors, are
able to make well-informed investment deci-
sions, we seek a transparent and active dialogue
with all financial market participants, including
investors, sell-side analysts, journalists and the
2024 relative share-price performance
Financial calendar 2025
4 March 2024 Annual Report
8 April Annual General Meeting
20 May Q1 Interim Report
12 August H1 Interim Report
11 November Q3 Interim Report
general public via conference calls, participation
in investor meetings and equity conferences and
social media.
H+H is not normally available for dialogue about
financial matters in the three-week period leading
up to the publication of an interim financial report
or the annual report. Inquiries concerning investor
relations issues should be addressed to the Head
of Investor Relations and Treasury via email
to Shareholder@HplusH.com. More relevant
investor information is available on our group
website.
H+H International | Annual Report 2024 | 44In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Net impact after mitigations
Probability
1
4
6
5
3
2
Risk management
The ERM processes at H+H ensure a dynamic approach, which
involves identifying risks, assessing their probability, and evalu-
ating the potential impact on business performance, governance,
image and people. The aim is to mitigate identified key risks to an
acceptable level through appropriate ERM processes. Each region
within the group conducted individual workshops to identify poten-
tial risks. The results and evaluations from these workshops were
integrated into the overall group enterprise risk evaluation. Key
elements of these risks and the corresponding mitigation strate-
gies are detailed in the following sections.
Detailed information on the risk management structure is available
in the Corporate Governance statement for 2024.
The Board of Directors of H+H International A/S
oversees the risk management processes to
ensure that the risk profile, risk process, and risk
awareness are appropriate. Responsibility for
Enterprise Risk Management (ERM) effectiveness
has been delegated to the Chief Financial Officer.
Market
Production
Financial
Cyber
Health & Safety
Climate
1
2
3
4
5
6
H+H International | Annual Report 2024 | 45In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Risk position
The risk categories outlined below are recurring risks from previous years, though the balance, severity and in some cases the nature
have changed. Hence, the efforts to mitigate these risks have been adjusted to the current risk picture.
1
Market
2
Production
Risk
description
The industry is influenced by a range of factors, including interest rates, which affect borrowing costs for developers and buyers,
and general economic growth, which impacts demand for housing. Population growth, urbanisation, and shifts in household
formation also play a role in driving the need for new homes. Additionally, government policies, incentives and regulatory frame-
works, such as sustainability requirements, influence the pace and focus of construction activity across regions. In recent years,
rising inflation and higher interest rates have lowered building activity, despite strong housing need.
Pricing continues to be a key parameter. In regions with a declining market, there is a risk that competitors will adopt a volume
strategy to avoid excess production capacity, leading to increased price pressure.
H+H relies on a stable production, therefore unforeseen stoppages,
unplanned maintenance, or damage to machinery or other events
vital to production which can make plants or machinery unavailable
for production for an extended period, is a risk. Other key elements of
the production risk include inflationary pressures and scarcity of raw
materials.
Mitigating
actions
H+H closely monitors the market development for residential new-build and frequently assesses current and expected market in-
dicators, such as building permits and interest rates. Additionally, by focusing on production efficiency we will improve the possi-
bility to respond to changes in market demands and adjust production capacity accordingly. We maintain a firm pricing discipline
and invest in relationships with key customers, to ensure that pricing strategies are both competitive and sustainable.
H+H remains committed to investing in our plants to ensure limited
disruption, through monitoring and investigation of critical production
equipment, preventive maintenance and regional developed emergen-
cy plans. In addition, we have implemented a hedging policy to manage
the risks associated with energy price volatility.
Net risk
assessment
As seen in recent years, the building industry is highly exposed to economic fluctuation. However, risks are mitigated by a firm
pricing discipline, continued investment in efficient and agile production facilities, which also allows for timely responses to
changes in the market dynamics. The risk is assessed to be medium to high.
Considering the mitigation actions, the risk is assessed to be medium.
It remains a key focus to ensure a stable and efficient production and
to regularly oversee and assess any potential production and supply
risks as part of daily operations.
H+H International | Annual Report 2024 | 46In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
3
Financial
4
Cyber
5
Health & Safety - ESRS 2 GOV-5
6
Climate - ESRS 2 GOV-5
Risk
description
A potential lack of funding or a breach of
covenants could lead to the cancellation of
the current facility, necessitating the estab-
lishment of a new, potentially more expensive
financing source. Additionally, a low cash
generation could impact bank KPIs, resulting
in higher interest rates.
Cybercrime is growing and there is a rise in
cyberattacks which are becoming more sophis-
ticated and frequent. Cyberattack/ransomware
situations blocking access to networks or
critical systems, can impact essential processes
in several business areas.
Critical accidents resulting in fatalities or serious
harm to employees or external parties can be
caused by several factors. These include inade-
quate behavior within the business, insufficient
training and learning in health and safety.
Failure to meet our science-based targets,
including not adhering to the sustainability
strategy by reducing coal usage, closing or
improving inefficient plants, and sourcing
more carbon-friendly raw materials, is a risk
for H+H.
Mitigating
actions
A long-term credit facility is established to
support the strategy and future investments.
Additionally, in-depth cash monitoring and
forecasting are conducted, including scenar-
io-based assessments.
Dedicated resources within Group IT focused
on cybersecurity are monitoring developments
in this area. Choice of IT suppliers and the
adequacy of defense measures are carefully
considered. Additionally, continuous training in
cybersecurity is provided for all employees and
results of the training is presented to manage-
ment on a recurring basis.
The importance of safety is embedded through
the Group Health and Safety Policy, which pro-
vides guidance on applying our safety manage-
ment system across all operations. We conduct
near-miss reporting and root cause analysis to
reduce risk and strive to enhance performance
through both external and internal reviews, fol-
lowed by subsequent follow-ups.
Operational management is responsible for ex-
ecuting plans that support our science-based
targets, and management is committed to
making adequate funding for the projects nec-
essary. Additionally, planning by the procure-
ment team in sourcing materials is essential.
Mitigating actions are further described in the
Sustainability Statement under the Environ-
mental Information section.
Net risk
assessment
The current liquidity position and expected
cash projections indicate sufficient headroom
for the company’s bank covenants. Conse-
quently, the risk is assessed as low.
H+H is seeing an increasing number of attempts
and numbers of methods being used in these
attempts. Our mitigating actions are consist-
ently updated and implemented, reducing the
likelihood of occurrence. Therefore, the risk is
considered to be medium.
There is a relatively small number of employees
in a plant, where the heavy machinery is, and it is
rare that accidents affect more than one employ-
ee at the time. The risk is considered low.
Our science-based targets are ambitious but
realistic with the effort and mitigation in place,
hence the probability of the risk is considered
low. The challenges are more industry specific
than company specific.
H+H International | Annual Report 2024 | 47In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Sustainability
statement
49 General information
63 Environmental information
76 Social information
85 Governance information
H+H International | Annual Report 2024 | 48In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
ESRS 2 General disclosures
BP-1 General basis for preparation
Our sustainability statement is prepared on
a consolidated basis with our 2024 financial
statements and with reference to the Corporate
Sustainability Reporting Directive (CSRD), the
European Sustainability Reporting Standards
(ESRS) and in compliance with sections 99a and
107d of the Danish Financial Statements Act.
It covers our own operations and upstream and
downstream value chains. The statement is
structured into four sections - ‘General’, ‘Envi-
ronmental’, ‘Social’ and ‘Governance’ – with each
section disclosing relevant information related to
impacts, risks, opportunities, targets, metrics,
policies and actions. We have not used the option
to omit specific information corresponding to
intellectual property, know-how or the results of
innovation.
GOV-1, GOV-2 Sustainability governance
H+H’s ESG activities are anchored at the Board
of Directors who has oversight of our strategy,
targets, impacts, risks and opportunities and
Group policies together with Group Management.
This includes regular risk assessments, establish-
ment of internal controls and documentation of
data, which are overseen by the Audit Committee.
Due diligence is managed mainly through policies
and their related processes. The Board of Direc-
tors and the relevant underlying board commit-
tees are updated on these as part of their annual
wheel.
The long-term strategy for H+H is discussed at
the annual strategy seminar, including how to
address and manage the material impacts, risks
and opportunities identified in the Double Mate-
riality Assessment (‘DMA’). During the first half
of 2024, a review of the DMA was completed by
Group Management and the regional Managing
Directors, including engagement with various
internal and external stakeholders. The result of
this was first presented to the Audit Committee
before being presented and approved by the
Board of Directors.
You can read more about our board composition,
governance structure and activities in the Corpo-
rate Governance section. Here you can also find
information on the experience and background
of the members of the Board of Directors and the
Executive Board.
As a further testament to our commitment, H+H
also has a sustainability-linked financing agree-
ment, which incentivises the achievement of
specific ESG KPIs.
General
information
List of disclosure requirements Page reference
ESRS 2 General Disclosures
BP-1 General basis for preparation of the sustainability statement Page 49
GOV-1 The role of the administrative, management and supervisory bodies Pages 36-42, 49
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
Pages 49-50
GOV-3 Integration of sustainability-related performance in incentive schemes Page 50
GOV-4 Statement on due diligence Page 51
GOV-5 Risk management and internal controls over sustainability reporting Pages 56-57
SBM-1 Strategy, business model and value chain Pages 19, 23-24
SBM-2 Interests and views of stakeholders Page 52
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Pages 53-54
IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
Pages 55
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s
sustainability statement
Pages 54, 59-62
Sustainability is a strategic focus area for H+H and it is
embedded in our business model.
In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2024 | 49Financial statements
Board of Directors
Oversees compliance of the ESG Policy and is updated monthly
on key ESG metrics by Group management as well as at board
and board committee meetings. This includes updates on
various ESG-related projects around the group and the effec-
tiveness of our actions in relation to our targets.
Audit Committee
Is responsible, amongst other things, for overseeing financial
and non-financial reporting as well as external assurance,
internal controls and risk management relating to ESG. It also
receives notice of results of whistleblower investigations.
Committee meetings are held each quarter in connection
with release of financial reports. Meetings are also held
at the request of other board members or the financial or
sustainability auditors, as well as when the Chair of the Audit
Committee finds it necessary.
The Operations organisation is overall responsible for execu-
tion of matters related to the environment, including energy
consumption, emissions, as well as H&S and work incidents.
The HR organisation is overall responsible for execution of
social matters, exept for safety, and for the framework for
implementation and training of compliance matters.
The Finance organisation is overall responsible for matters
related to execution of governance, including reporting, ESRS
and taxonomy.
H+H Group Management
Defines and executes initiatives to achieve the ESG strategy
and oversees progress, including long-term projection of CO
2
emissions and health & safety. Driven in close liaison with
regional management, work and reporting is supported by
various Group and regional functions. This is done at least
monthly as part of general business review meetings or as part
of weekly meetings with the regional Managing Directors.
Corporate Controlling
Monitors new legal requirements and trends around the ESG
landscape, makes recommendations on key ESG initiatives
to ensure compliance with stakeholder expectations, and
executes on strategic targets in cooperation with key regional
stakeholders.
Sustainability is anchored across our
corporate governance structures
GOV-3 Integration of sustainability-related
performance in incentive schemes
H+H’s Remuneration Policy for the Board of Directors and Executive
Board seeks to create a remuneration framework that supports
achievement of our strategy, with a focus on ensuring continuous
long-term sustainable development of our business, while creating
long-term value for shareholders. The policy, including all subse-
quent changes, is approved by the General Meeting of shareholders.
The policy describes target setting for both the long- and short-
term incentive programme. For 2024, the short-term incentive
programme included two KPIs related to ESG, with one KPI target
relating to lost-time incidents (H&S) and one KPI target relating to
the reduction of our scope 1 and 2 CO
2
emissions. Each KPI has a
15% weighing.
In 2023, we introduced an ESG-related KPI in our long-term incentive
share programme, related to our scope 1 and 2 emissions. This was
continued in 2024 and like last year, the target is weighted 15%. The
measurement period of the programme runs three financial years at
the time. Both long- and short-term targets relating to emissions are
assessed and determined in relation to the GHG emission reduction
targets described in the Environmental section.
SBM-1 Strategy, business model and value chain
A description of our strategy, business model and value chain is
provided in the Business and Strategy section. Please refer to the full
content of page 19 and 23-24.
H+H International | Annual Report 2024 | 50In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Core elements of
Due Diligence
Paragraphs or pages in
the Sustainability Statement
Does the disclosure relate to
people and/or the environment?
a) Embedding
due diligence
in governance,
strategy and
business model
ESRS 2 GOV-2, pages 49-50
People and environment
ESRS 2 GOV-3, page 50
People and environment
ESRS 2 SBM-3:
pages 64-65 (E1)
Environment
pages 76-77 (Health & Safety, S1)
People
page 78 (Equal treatment & opportunities for all, S1)
People
page 82 (Training & skills development and working
conditions, S1)
People
b) Engaging
with affected
stakeholders in
all key steps of
the due diligence
ESRS 2 GOV-2, pages 49-50
People and environment
ESRS 2 SBM-2, page 52
People and environment
ESRS 2 IRO-1, page 55
People and environment
ESRS 2 MDR-P:
page 65 (E1-2)
Environment
pages 77-79, 82 (S1-1)
People
Social: page 82 (S1-2)
People
ESRS 2 IRO-1, page 55
People and environment
c) Identifying and
assessing adverse
impacts
ESRS 2 SBM-3:
pages 64-65 (E1)
Environment
page 76-77 (Health & Safety, S1)
People
page 78 (Equal treatment & opportunities for all, S1)
People
page 82 (Training & skills development and working
conditions, S1)
People
Core elements of
Due Diligence
Paragraphs or pages in
the Sustainability Statement
Does the disclosure relate to
people and/or the environment?
d) Taking actions
to address those
adverse impacts
ESRS 2 MDR-A:
page 63 (E1-1)
Environment
pages 65-66 (E1-3)
Environment
pages 77, 79, 82 (S1-4)
People
e) Tracking
effectiveness of
these efforts and
communicating
ESRS 2 MDR-M:
page 66 (E1-4)
Environment
pages 77-78 (S1-14)
People
page 81 (S1-9)
People
page 81 (S1-16)
People
page 83 (S1-13)
People
ESRS 2 MDR-T:
page 66 (E1-4)
Environment
pages 77, 79, 83 (S1-5)
People
GOV-4 Statement on due diligence
Environment
People
H+H International | Annual Report 2024 | 51In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
As Partners in wall building, we are
in the business of people, seeking
to engage with both our internal and
external stakeholders. The Board of
Directors and Group management
are regularly informed of the views
of our stakeholders to better assess
how to incorporate their interests
in our strategy. A key interest area
from both our internal and external
stakeholders is the need to drive
down emissions, while the main
priority for our internal stakeholders
is safety. This is reflected in our
strategy and ways of working.
Employees
We are committed to providing a safe, engaging
and meaningful workplace for our employees,
where collaboration can thrive.
We engage with our employees in a number
of different ways, including intranet updates,
workers’ councils, engagement surveys in
selected areas, manager check-ins and global
town halls. Employees also have the opportunity
to raise concerns through our online whistle-
blower system, described in the Governance
section. Through this we want employees to feel
they have influence over their workplace and that
concerns are met, e.g. in the form of improve-
ments and action plans.
Customers
We are a customer centric organisation under-
pinned by our promise to be Partners in wall
building. Engaging with our customers to consist-
ently understand their perspectives and needs
is an embedded part of our business model with
the aim of building trust, providing sustainable
solutions as well as enabling them to reach
their targets. Engagement is done through our
customer support, customer surveys and training
as well as part of business partner due diligence.
Our stakeholders
SBM-2 Interests and views of stakeholders
Examples of outcome is the creation of product-
specific environmental product declarations
(EPDs) in most of our markets.
Suppliers
H+H relies on suppliers to meet our emissions
reduction targets. This informs the purpose of
our engagement, focusing on development of
low-carbon cement and lime and finding more
efficient production methods. Engagement is
organised as part of supplier due diligence and via
industry collaborations. The progress of these,
influences our strategy for lowering scope 3 emis-
sions in the short and long-term.
Society and local communities
Compliance with existing regulations on respon-
sible business practices is a fundamental and
basic requirement in H+H’s Code of Conduct.
Through our memberships in various trade organ-
isations, we engage in dialogue with different
regulators and interest groups with the purpose
of addressing potential risks and opportunities
as well as ensuring regulatory compliance. We
engage with our local communities to ensure that
we are good neighbours to our surroundings and
we participate in local trade fairs and events to
promote our business and further relationships.
Shareholders
H+H is listed on the Danish Stock exchange. We
therefore naturally engage with our shareholders
on a regular basis to ensure efficient financial
allocation and to understand shareholders’
interests. This is done via a dedicated Investor
Relations department, management participa-
tion in investor roadshows and conference calls,
briefings with analysts and the Annual General
Meeting. The purpose of this is to improve
dialogue and relationships with stakeholders.
Dialogue with shareholders is described in more
detail in the Shareholder Information section
(Investor Relations) on page 44.
H+H International | Annual Report 2024 | 52In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model
As part of our process, we have considered
current and anticipated effects of impacts, risks
and opportunities on our business model, value
chain and decisionmaking. The material impacts,
risks and opportunities identified during the
materiality assessment are presented in more
depth alongside the topical standards ESRS E1
Climate change, S1 Own workforce and G1 Busi-
ness conduct in the Environmental, Social and
Governance information sections in this sustaina-
bility statement.
For climate-related topics we have identified
material financial risks and opportunities, as
shown in our DMA matrix and elaborated on in
ESRS 2 SBM-3 in the Environmental section.
For other material topics, we have exercised the
phase-in option and not quantified the financial
effect.
E1 climate change Chapter Type Sub-section Value chain Time horizon
Emissions from own operations Climate change Actual negative Own operations All
Value chain emissions from raw materials production Climate change Actual negative Upstream All
Use of energy in own production Climate change Risk Own operations All
Recarbonisation of our products during its life-time Climate change Opportunity Entire value chain All
S1 Own workforce
System to record and assess workplace injuries and illnesses in order to prevent them going forward Health & safety Potential negative Industrial accidents Own operations Short
Ill health due to exposure to hazardous materials Health & safety Potential negative Production materials Own operations Short & Medium
Recording of how many days are lost due to work incidents, ill health and fatalities Health & safety Potential negative Industrial accidents Own operations Short & Medium
Incidents which have resulted in an injury, ill health or fatality Health & safety Potential negative Industrial accidents Own operations Short & Medium
Incidents which result or could potentially result in an injury Health & safety Potential negative Industrial accidents Own operations Short
Gender equality impact Equal treatment & opportunities for all Actual negative Gender equality & equal pay Own operations Short
Diversity in H+H Equal treatment & opportunities for all Potential negative Gender diversity Own operations Short & Medium
Risk of harrasment in workplace Equal treatment & opportunities for all Potential negative Anti-harassment Own operations Short & Medium
Workers impact on working time Training & skills development and
working conditions
Potential negative Work-life balance, working
conditions and social dialogue
Own operations Short
H+H's impact on work-life balance Training & skills development and
working conditions
Potential negative Work-life balance, working
conditions and social dialogue
Own operations Short & Medium
Individual career development of H+H employees Training & skills development and
working conditions
Potential negative Training and skills development Own operations Short & Medium
H+H's impact on social dialogue in the workspace Training & skills development and
working conditions
Potential negative Work-life balance, working
conditions and social dialogue
Own operations Short
Training of employees Training & skills development and working
conditions
Potential negative Training and skills development Own operations Short & Medium
G1 Business Conduct
Impact on own workforce from corporate culture Business Conduct Potential negative Corporate culture Own operations All
Lack of protection of whistleblowers Business Conduct Potential negative Whistleblower protection Own operations All
Risk of corrupt business practices being conducted in H+H Business Conduct Potential negative Unethical business practices Own operations All
H+H International | Annual Report 2024 | 53In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Impact material
Non-material
Double material
Financial material
Financial impact on H+H
H+H impact on people and environment
1 2 314
20
15
21
16 17
24
4 9
18
5 10
19
6
11 23
7
12
8
13 022
Double Materiality Assessment
IRO-2 Disclosure Requirements in ESRS
We have aligned the IROs with the relevant ESRS
data points and conducted a thorough materiality
assessment. This evaluation helped us ascertain
their relevance to our business model and the
decision-making requirements of the Sustain-
ability statement's users. For all topics we have
assessed the scale, scope and irremediability and
applied relevant thresholds.
E1 Climate change
1
Climate change adaptation (CCA)
2
Climate change mitigation (CCM)
3
Energy
E2 Pollution
4
Air
5
Water
6
Soil
0
Living organisms
0
Substance of (high) concern
E3 Water & marine resources
7
Water withdrawals
0
Marine resources
0
Water habitat degradation
E4 Biodiversity & ecosystems
8
Direct impact drivers on biodiversity loss
0
Impact on the state of species
9
Impacts on the extent and condition
of ecosystems
10
Impacts and dependencies on ecosystem
services
E5 Resource use and circular economy
11
Resource inflows and usage
12
Resource outflows related to products
and services
13
Waste
S1 Own workforce
14
Working conditions
15
H&S
16
Equal treatment and opportunities
17
Talent development
0
Other work related rights
S2 Workers in the value chain
18
Working conditions
19
Equal treatment and opportunities
0
Other work related rights
S3 Affected communities
0
Economic, social and cultural rights
0
Civil and political rights
0
Particular rights of indigenous rights
S4 Consumer & end-user
0
Information related impacts
0
Personal safety of consumers
0
Social inclusion of consumers
G1 Business conduct
20
Corporate culture
21
Whistleblower protection
0
Animal welfare
22
Political & lobbying activities
23
Payment practices with suppliers
(late payment)
24
Corruption and bribery
Consequently, this analysis identified the key
sustainability information presented in this
statement. Description of material and non-ma-
terial topics are elaborated under SBM-3 and
the process of determination is described under
IRO-1. The list of relevant datapoints related to
other legislation is shown on pages 61-64.
Reporting topics in scope
Topics marked '0' in the list to the right were
deemed immaterial from the start and thereby not
included in the engagement process.
Environmental Social Governance
H+H International | Annual Report 2024 | 54In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
IRO-1 Description of the processes
to identify and assess material
impacts, risks and opportunities
Identification of topics
All entities and business segments have been
in scope in our assessment and our IRO. Identi-
fication of topics and subsequent assessment
and scoring of topics have been done throughout
our value chain. We have engaged with various
internal and external stakeholders, including
employees, suppliers, customers, society,
investors, analysts and banks to identify H+H’s
material sustainability matters. This engage-
ment happened through interviews and desktop
research. Parallel to this, we have also assessed
the financial risks and opportunities for sustaina-
bility-related matters as part of our ERM process.
Our DMA is reassessed annually or if we identify
significant changes.
General assumptions
We have applied the following assumptions to our
process for identifying impacts, risks and oppor-
tunities:
• Majority (95+%) of our supply is virgin mate-
rial, which is excavated and supplied directly
from tier 1 suppliers and not processed from
tier 2 suppliers. Hence we have decided to only
include tier 1 suppliers, as others are of imma-
terial size.
• We assume, the primary actual and potential
impact lies within our upstream activities and
production. Therefore, our analysis for down-
stream activities is primarily based on inter-
views with internal stakeholders and desktop
research.
• Transport is included in Climate as part of
scope 3 emissions. Besides Climate we have
assumed that transport is not significant in
relation to impacts and have therefore not
performed further analysis.
• Assumptions which have been used under
various topics are described below the relevant
topics.
Materiality scoring approach
The materiality assessment's scoring method and
criteria were established following ESRS 1 require-
ments, focusing on:
• Impact materiality: Considering the scale,
scope, irremediability, and likelihood of impacts
being positive/negative and actual/potential.
Severity takes precedence over likelihood for
human rights related impacts as per ESRS 1 (45).
• Financial materiality: Assessing the financial
significance of risks/opportunities, their likeli-
hood, and the nature of financial impacts.
Outcome
The materiality assessment determined that
“Climate”, “Own workforce” and “Business
Conduct” are material topics for H+H, and
the 2024 evaluation confirmed the topics and
subtopics in scope. In line with the materiality
assessment our sustainability strategy focuses
on CO
2
and safety. This outcome is consistent
with our previous sustainability strategy with no
additional focus areas being added.
Rationale for selected scoped-out matters
In this section we want to provide more clarity
for the out-scoping of four selected topics. While
below topics fall under our threshold for materi-
ality following our assessment, we still recognise
that we have a footprint and therefore want to
provide transparency on our reasoning for not
having them in scope. The section is not exhaus-
tive.
Pollution
In our assessment of our impact on the pollution
of air, water and soil, we have analysed the impact
of our own production in the value chain. As we
believe the pollution of our upstream and down-
stream value chain activities are compliant with
European and local regulations, and do not pose
any material impact on the environment, we have
not done any further analysis.Additionally, in our
research we have not encountered any material
cases or controversies in the building supply
industry on pollution.
In production of AAC, almost 100% of the water
is either used in the product or recycled into
production afterwards, hence no risk of water or
soil pollution. For CSU, we use almost no water as
the production process only involves the pressing
of dry lime and sand. The only water used is for
the generation of steam. Any excess water is sent
to municipal water treatment stations, which we
pay for. In conclusion, we do not see any material
negative impact in the pollution of water and soil.
In terms of air pollution, we have assesed our use
of natural gas and coal. From a pollution perspec-
tive natural gas is generally a “clean” source to
burn and is not considered to have a material
negative impact.
Coal as an energy source is materially polluting
the air in its natural form and it is therefore heavily
regulated through local legislation to prevent it
from polluting the air and impacting the local
community. In our coal-fired plants, we use air-
and dust filters to capture the pollution, and we
regularly test the emissions to ensure alignment
with local legislative requirements. Based on this,
we decided not to conduct consultations with
local affected communities.
Water withdrawals
Using water is a key process in our manufacturing
process. However, our plants are generally not
located in areas of high water stress, so the risk
of water scarcity is low. Generally there is also a
H+H International | Annual Report 2024 | 55In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
consumption cap on our water permits ensuring
that we do not have any material impact on the
water in the local community. In addition, many
of our plants are designed to recycle water to
the extent possible, further limiting our water
consumption.
Biodiversity
We have assessed our impact on biodiversity
from a direct and indirect perspective. Our direct
impact is through the operation of our sandpits
in Poland. Here we are obligated to adhere to
national and local regulations and procedures for
the protection of biodiversity and ecosystems,
which is supervised by authorities. Our commit-
ment is therefore to comply with these require-
ments. In the UK we have implemented small
projects to further biodiversity in line with local
regulations. The results of these are regularly
monitored. Additionally, in our research we have
not encountered any material cases or controver-
sies in the building supply industry on biodiversity.
Indirectly we procure sand and lime through
external suppliers, who manage and operate
quarries and sandpits that can have a potential
impact on biodiversity. We have engaged with
our suppliers to understand their policies, prac-
tices, and initiatives on this subject to ensure we
are aware of the contribution from our resource
in-flow. We believe there are no material impacts
or risks, as we only cooperate with suppliers from
European countries with strong institutions and
high legislative requirements.
Circularity & waste
We run our plants according to a “no waste of
virgin materials” principle. All off-cuts and waste
in the production process are re-circulated into
new batches, meaning no waste occurs during
this process. At this stage we have therefore
concluded that there are no material impacts,
risks or opportunities.
ESRS 2 GOV-5 Risk management
and internal controls over
sustainability reporting
H+H has established a comprehensive risk
management and internal control system where
sustainability is embedded. This system includes:
• Risk identification and assessment: Continuous
identification and assessment of risks related
to internal controls, including sustainability
reporting, are conducted at Group and regional
level. Each region assesses relevant risks, which
are then considered by Group, when identifying
and assessing the overall Group sustainability
risks. Additionally, Group performs risk identifi-
cation and assessment at reporting level, which
includes processes within the ESG reporting
system, as well as the financial reporting
system.
• Control activities: The Group has implemented
internal control activities to mitigate identified
risks in the sustainability reporting. These activ-
ities are performed and reviewed by the regions
to ensure the quality and validity of manage-
ment reporting and the Annual Report.
• Monitoring: The risk management process and
internal controls environment is monitored and
reviewed, involving the regions and anchored in
the Group. This includes reporting to the Audit
Committee. A controller visit plan, approved by
the Audit Committee, ensures that each region
is visited at least once a year to assess the
maturity and effectiveness of internal controls.
Risk Assessment Approach and Methodology
H+H follows a structured risk assessment
approach based on the COSO ERM and COSO
Internal control guidance.
• Risk Assessment: Risks are assessed based on
their potential impact and likelihood. Significant
risks are identified and prioritised.
• Methodology: A combination of qualitative and
quantitative methods is used to assess risks.
For Enterprise Risk, we consider Operational
and Strategic impacts along with HSE, Environ-
ment and Compliance. For internal controls,
financial statement lines and key ESG metrics
are considered based on calculated materiality,
as well as qualitative factors, such as fraud risk,
volume and complexity.
Key risks identified, related mitigation
strategies, and controls
For sustainability under Enterprise Risk Manage-
ment, please refer to the segments under Risk
Management called Climate and Health & Safety.
For internal controls, we have identified the
following key risks; measuring of consumption,
measuring of conversion factors and measuring
of volumes.
Controls are implemented in all regions to miti-
gate these risks and ensure the reliability of
the sustainability reporting system and related
reports.
The risk corresponding controls are the following:
reconciling input data in our ESG reporting system
to supporting documentation, performing analyt-
ical reviews, obtaining and comparing conversion
factors.
Integration of findings, risk,
and mitigation reporting
Each region assesses their risks and report to
Group as input to the review of risk and mitiga-
tion plans from the Enterprise Risk Management
H+H International | Annual Report 2024 | 56In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
processes. Summaries are reported to the Audit
Committee. The key risks and mitigations are
detailed in the Risk Management section in this
Annual Report. It is the responsibility of regional
management to follow up on the planned mitiga-
tions.
Findings from the regional review are reported to
regions as issues, tracked along with agreed upon
actions plans. Statistics are reported to the Audit
Committee. Group monitors the development of
issues to ensure actions plans are met, in cooper-
ation with regional management.
BP-2 Uncertainties and estimates
Most of our data is based on HR systems, meter
readings, invoices and information directly from
our suppliers. We generally therefore do not have
many uncertainties and estimates in our figures.
However, for scope 3 category 4 and 9 (trans-
portation) we have applied a general emission
factor as we do not assess types of trucks on an
individual basis. For some office related working
hours, we have applied norm-hours as the basis
for calculation of a workday.
We believe that these estimates are reasonable
under the circumstances. We have currently not
planned any changes to this approach.
Incorporation by reference
Disclosure requirement Data point Sub-section Page
ESRS 2 GOV-1 All Corporate Governance in general 36-42
G1.GOV-1 §5 (b) Board of Directors 40-42
SBM-1 All Business Model, Strategic Focus Areas (HOME & Mission Zero) 19-20, 23-24
SBM-2 §45 (a) iii, iv Investor Relations 44
SBM-3 All Strategic Focus Areas (HOME, Zero Harm) 21, 23
ESRS 2 GOV-5 All Enterprise Risk Management (H&S and Climate) 47
E1-1 §15 Business Model, Strategic Focus Areas (Mission Zero) 23-24
E1-4 §34 (f) Business Model, Strategic Focus Areas (Mission Zero) 23-24
Climate-related scenario analysis
In 2022, we conducted a climate-related scenario
analysis using the TCFD guidelines to assess
transition and physical risks and opportunities
and how they might impact the resilience of our
business strategy. The analysis was refreshed in
2023 and 2024.
The analysis was based on the Net Zero 2050,
Delayed Transition and Current Policies scenarios
released by the Network for Greening the Finan-
cial System (NGFS) in 2021. These describe
warming of 1.5°C, 1.8°C and +3°C respectively¹.
The scenarios considered H+H's full value chain,
including our own operations, upstream cement
and lime producers and downstream customers.
The timeframe used in the scenarios defined
short-, medium- and long-term as 2025, 2030
and 2050 respectively. The 2030 timeframe
aligns with our science-based target and the 2050
timeframe aligns with our commitment to net zero
emissions by 2050, in accordance with the Paris
Agreement targets.
The original TCFD process included a workshop
with the top 50 leaders from across the Group
to consider the three scenarios and identify
climate-related risks and opportunities.
The findings from the scenario analysis were
presented to Group Management and the Board of
Directors and were incorporated into our strategy.
The climate-related risks are also incorporated
into our annual Enterprise Risk Management
(ERM) system.
1 For physical climate risk, we used data from the RCP 6.0 scenario in the IPCC Sixth Assessment Report published in September 2021.
H+H International | Annual Report 2024 | 57In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
1.5°C 2°C 3-4°C
Scenario 1 Scenario 2 Scenario 3
Net Zero 2050 scenario
The Net Zero 2050 scenario is a scenario that limits global warming
to 1.5 °C. It is an orderly scenario that includes stringent climate poli-
cies and fast technology change to reach net zero emissions in 2050.
Carbon prices rise to USD $185 t/CO
2
in 2030, USD $350 in 2040
and USD $675 in 2050. This scenario tests for immediate transition
risk and low physical risk.
The accelerated rollout of renewable energy and hydrogen infra-
structure supports our goal to reduce emissions in our own opera-
tions.
The main variable for our ability to reduce the emissions intensity
of our products is the speed at which carbon capture utilisation and
storage technologies are introduced by cement and lime producers,
and therefore for H+H to reduce our scope 3 emissions.
Climate scenarios
The key assumptions in the scenarios are as follows:
Delayed Transition scenario
In the Delayed Transition scenario, a delay means global emissions
increase until 2030 and then strong policies are needed to limit
warming to 2°C. Carbon prices rise rapidly from USD $70 t/CO
2
in
2030 to $325 in 2040 and $625 in 2050. This disorderly scenario
tests for delayed and high transition risk.
A delayed rollout of renewables and hydrogen infrastructure would
slow our ability to reduce our operational emissions. However, this
scenario aligns with the expected timing of the cement industry’s
decarbonisation roadmap for the introduction of CCUS technologies
and therefore would not undermine our own decarbonisation plans.
Hot House World (Current Policies) scenario
This scenario assumes that only currently implemented policies are
preserved, leading to climate-related hazards and high physical risks.
Emissions continue to grow until 2080 leading to 3-4°C of warming
and severe physical risks. We paired this scenario with data from the
IPCC RCP 6.0. In Europe, where we have operations, the frequency
and intensity of heat extremes, including marine heatwaves, are
projected to keep increasing.
We do not believe there are any material physical risks to any of
our assets, as none of our plants are located in areas with risk of
earthquakes, wildfires, tornados or volcanoes. During our insurance
review no flooding risks were detected either.
H+H International | Annual Report 2024 | 58In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
ESRS 2 Appendix B
Disclosure Requirement
and related datapoint SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate
Law reference
Material/
Not material
Paragraph or
page reference
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation
(EU) 2020/1816, Annex II
Material p. 38
ESRS 2 GOV-1 Percentage of board members who are independent
paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material p. 38
ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex I Material p. 51
ESRS 2 SBM-1 Involvement in activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4 Table #1 of Annex I Article 449a Regulation (EU) No 575/2013: Commission Implement-
ing Regulation (EU) 2022/2453 Table 1: Qualitative information on
Environmental risk and Table 2: Qualitative information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
Not material
ESRS 2 SBM-1 Involvement in activities related to chemical
production paragraph 40 (d) ii
Indicator number 9 Table #2 of Annex I Delegated Regulation (EU)
2020/1816, Annex II
Not material
ESRS 2 SBM-1 Involvement in activities related to controversial
weapons paragraph 40 (d) iii
Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not material
ESRS 2 SBM-1 Involvement in activities related to cultivation and
production of tobacco paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not material
ESRS E1-1 Transition plan to reach climate neutrality by 2050
paragraph 14
Regulation (EU)
2021/1119, Article
2(1)
Material p. 63
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks
paragraph 16 (g)
Article 449a Regulation (EU) No 575/2013; Commission Imple-
menting Regulation (EU) 2022/2453 Template 1: Banking book
Climate Change transition risk: Credit quality of exposures by sector,
emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to (g), and
Article 12.2
Not material
ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implement-
ing Regulation (EU) 2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material p. 66
ESRS E1-5 Energy consumption from fossil sources disaggregated
by sources (only high climate impact sectors) paragraph 38
Indicator number 5 Table #1 and Indicator
n. 5 Table #2 of Annex 1
Material p. 67
ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material p. 67
ESRS E1-5 Energy intensity associated with activities in high climate
impact sectors paragraphs 40 to 43
Indicator number 6 Table #1 of Annex 1 Material p. 67
H+H International | Annual Report 2024 | 59In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Disclosure Requirement
and related datapoint SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate
Law reference
Material/
Not material
Paragraph or
page reference
ESRS E1-6 Gross scope 1, 2, 3 and Total GHG emissions
paragraph 44
Indicators number 1 and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013; Commission Imple-
menting Regulation (EU) 2022/2453 Template 1: Banking book –
Climate change transition risk: Credit quality of exposures by sector,
emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
Material p. 67-68
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implement-
ing Regulation (EU) 2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Material p. 67-68
ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU)
2021/1119, Article
2(1)
Not material
ESRS E1-9 Exposure of the benchmark portfolio to climate-related
physical risks paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816, Annex II
Not material
ESRS E1-9 Disaggregation of monetary amounts by acute and
chronic physical risk paragraph 66 (a) ESRS E1-9 Location of
significant assets at material physical risk paragraph 66 (c).
Article 449a Regulation (EU) No 575/2013; Commission Implement-
ing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5:
Banking book - Climate change physical risk: Exposures subject to
physical risk.
Not material
ESRS E1-9 Breakdown of the carrying value of its real estate assets
by energy-efficiency classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013; Commission Implement-
ing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking
book -Climate change transition risk: Loans collateralised by immova-
ble property - Energy efficiency of the collateral
Not material
ESRS E1-9 Degree of exposure of the portfolio to climate-related
opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
Not material
ESRS E2-4 Amount of each pollutant listed in Annex II of the
E-PRTR Regulation (European Pollutant Release and Transfer
Register) emitted to air, water and soil, paragraph 28
Indicator number 8 Table #1 of Annex 1
Indicator number 2 Table #2 of Annex 1
Indicator number 1 Table #2 of Annex 1
Indicator number 3 Table #2 of Annex 1
Not material
ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Not material
ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Not material
ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material
ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Not material
ESRS E3-4 Total water consumption in m
3
per net revenue on
own operations paragraph 29
Indicator number 6.1 Table #2 of Annex 1 Not material
ESRS 2- IRO 1 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material
ESRS 2- IRO 1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material
ESRS 2- IRO 1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material
ESRS E4-2 Sustainable land / agriculture practices or policies
paragraph 24 (b)
Indicator number 11 Table #2 of Annex 1 Not material
H+H International | Annual Report 2024 | 60In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Disclosure Requirement
and related datapoint SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate
Law reference
Material/
Not material
Paragraph or
page reference
ESRS E4-2 Sustainable oceans / seas practices or policies
paragraph 24 (c)
Indicator number 12 Table #2 of Annex 1 Not material
ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Not material
ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Not material
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Not material
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph
14 (f)
Indicator number 13 Table #3 of Annex I Not material
ESRS 2- SBM3 - S1 Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12 Table #3 of Annex I Not material
ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator
number 11 Table #1 of Annex I
Material p. 79
ESRS S1-1 Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1 to 8,
paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
Material p. 79
ESRS S1-1 processes and measures for preventing trafficking in
human beings paragraph 22
Indicator number 11 Table #3 of Annex I Not material
ESRS S1-1 workplace accident prevention policy or management
system paragraph 23
Indicator number 1 Table #3 of Annex I Material p. 77
ESRS S1-3 grievance/complaints handling mechanisms paragraph
32 (c)
Indicator number 5 Table #3 of Annex I Material p. 82
ESRS S1-14 Number of fatalities and number and rate of work-
related accidents paragraph 88 (b) and (c)
Indicator number 2 Table #3 of Annex I Delegated Regulation (EU)
2020/1816, Annex II
Material p. 78
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or
illness paragraph 88 (e)
Indicator number 3 Table #3 of Annex I Material p. 78
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU)
2020/1816, Annex II
Material p. 81
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Material p. 81
ESRS S1-17 Incidents of discrimination paragraph 103 (a Indicator number 7 Table #3 of Annex I Material p. 83
ESRS S1-17 Nonrespect of UNGPs on Business and Human Rights
and OECD paragraph 104 (a)
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated Regu-
lation (EU) 2020/1818 Art 12 (1)
Material p. 83
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour
in the value chain paragraph 11 (b)
Indicators number 12 and n. 13 Table #3
of Annex I
Not material
ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator
n. 11 Table #1 of Annex 1
Not material
ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of
Annex 1
Not material
H+H International | Annual Report 2024 | 61In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Disclosure Requirement
and related datapoint SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate
Law reference
Material/
Not material
Paragraph or
page reference
ESRS S2-1 Nonrespect of UNGPs on Business and Human Rights
principles and OECD guidelines paragraph 19
Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU)
2020/1816, Annex II Delegated Regu-
lation (EU) 2020/1818, Art 12 (1)
Not material
ESRS S2-1 Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1 to 8,
paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
Not material
ESRS S2-4 Human rights issues and incidents connected to its
upstream and downstream value chain paragraph 36
Indicator number 14 Table #3 of Annex 1 Not material
ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex
1 and Indicator number 11 Table #1 of
Annex 1
Not material
ESRS S3-1 non-respect of UNGPs on Business and Human Rights,
ILO principles or and OECD guidelines paragraph 17
Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU)
2020/1816, Annex II Delegated Regu-
lation (EU) 2020/1818, Art 12 (1)
Not material
ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material
ESRS S4-1 Policies related to consumers and end-users
paragraph 16
Indicator number 9 Table #3 and Indicator
number 11 Table #1 of Annex 1
Not material
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights
and OECD guidelines paragraph 17
Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU)
2020/1816, Annex II Delegated Regu-
lation (EU) 2020/1818, Art 12 (1)
Not material
ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 Not material
ESRS G1-1 United Nations Convention against Corruption
paragraph 10 (b)
Indicator number 15 Table #3 of Annex 1 Not material
ESRS G1-1 Protection of whistle-blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Material p. 86
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery
laws paragraph 24 (a)
Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU)
2020/1816, Annex II)
Material p. 87
ESRS G1-4 Standards of anti-corruption and anti- bribery
paragraph 24 (b)
Indicator number 16 Table #3 of Annex 1 Material p. 87
H+H International | Annual Report 2024 | 62In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Environmental
information
List of material disclosure requirements Page reference
E1 – Climate change
GOV-3 Integration of sustainability-related performance in incentive schemes Page 50
E1-1 Transition plan for climate change mitigation Pages 63-64
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business
model
Pages 64-65
E1-2 Policies related to climate change mitigation and adaptation Page 65
E1-3 Actions and resources in relation to climate change policies Pages 65
E1-4 Targets related to climate change mitigation or adaptation Page 66
E1-5 Energy consumption and mix Page 67
E1-6 Gross scopes 1, 2, 3 and Total GHG emissions Pages 67-68
E1-9 Anticipated financial effects from material physical and transition risks and potential
climate-related opportunities
Page 68
H+H is committed to an ambitious 1.5°C climate
target. We want to be part of the solution in
construction of sustainable housing and at the same
time lowering global energy related carbon emissions.
Creating more sustainable buildings is key to
addressing the issue of CO
2
emissions coming
from the buildings sector. Building materials, such
as H+H’s AAC and CSU products, are well posi-
tioned for long-term growth as they ensure ener-
gy-efficient building structures and help to reduce
buildings’ whole life emissions.
E1-1 Transition plan for climate
change mitigation
We believe our strategy and business model are
compatible with the transition to a sustainable
economy by reducing our carbon emissions in
line with our Science Based Targets and target of
net zero emissions in 2050. This is in line with the
Paris Agreement and the EU’s climate goals and
compatible with the 1.5 degree scenario. Please
refer to the 'Mission Zero' section under 'Strategic
Focus Areas' for specific actions to reach net zero
by 2050.
We do not assess to have any locked-in GHG
emissions as we believe that all emissions can be
avoided through proper strategy and execution.
Part of our economic activities are also covered
under the EU Taxonomy and we are striving
towards aligning all eligible activity. This will be
done by implementing environmental plans on our
plants and the increased use of more environmen-
tally friendly transport vehicles for distribution.
Science-based GHG emission
reduction targets
Our commitment is backed up by the validated
reductions we will make in our scope 1, 2 and 3
GHG emissions by 2030.
The ten-year science-based target builds on the
product whole life analysis that was undertaken
in 2020 which determined that our AAC and CSU
products are on a path to achieve net zero — and
possibly negative — emissions by 2050. Our emis-
sions reduction targets are explained in disclosure
requirement E1-4.
Climate change mitigation actions
To achieve the 2030 science-based target, we
have developed a roadmap that includes the
following levers which are outlined in disclosure
requirement E1-3.
1. Increasing the share of renewable energy
2. Optimising plants including investments in
energy efficient equipment
3. Improved energy mix
4. Supply-chain decarbonisation, in particular,
reducing emissions from the production of
lime and cement which represent most of our
scope 3 emissions
The transition plan is embedded in our strategy
together with related initiatives. The transition
plan, along with the initiatives to achieve it and
the science-based target have been approved by
In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2024 | 63Financial statements
Group Management and the Board of Directors.
The COO is responsible for the implementation of
the transition plan.
A dedicated amount of the CAPEX budget
(5%-15%) is annually allocated to support emis-
sion reduction projects. We also integrate perfor-
mance measures related to GHG emissions reduc-
tions into our management incentive schemes,
which is described in the General Information
section.
Our current progress towards our transition plan
is stated in the “Results” in the E1-6 section. H+H
is not excluded from Paris-aligned benchmarks.
Sources of H+H’s GHG emissions
– baseline year
Scope 1 and 2 emissions from operations account
for about 25% of our carbon footprint, with about
75% of these emissions generated by the use of
coal, oil, and gas in our plants.
H+H’s total CO
2
e 2019 emissions used as a baseline for science-based targets
Energy
75%
Gas, coal, oil
Operational
equipment
and offices
25%
Electricity, steam
75%
Value-chain emissions
(Scope 3)
Raw materials
95%
Lime, cement
Distributions
and embedded
energy emissions
5%
Diesel
25%
Emissions from operations
(Scope 1+2)
ESRS 2 SBM-3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
Climate change impacts
The materiality assessment described in disclo-
sure requirement IRO-2 identified the following
material climate change mitigation impacts:
Recarbonation during product
lifetime (positive)
Limestone-based products such as AAC and
CSU absorb CO
2
during their lifespan, acting as
permanent carbon sinks during the use phase
of a building and when it is torn down and recy-
cled. AAC products can absorb 77 kg of CO
2
per
m
3
, with 80% of recarbonation achieved after
50 years and 95% within 80 years. This positive
impact occurs in our downstream value chain (the
end-users of AAC and CSU products) over the
short, medium, and long term.
Please refer to EAACA - Net-zero roadmap for
AAC for underlying documentation.
Emissions from own operations (negative)
The emissions from our own operations have a
material impact on climate, with 89t CO
2
of scope
1 and 2 emissions during 2024. This negative
impact occurs over the short and medium term.
With our net zero target we do not expect to have
negative impact the long term.
About 75% of the emissions in H+H’s carbon
footprint are scope 3 emissions generated else-
where along the value chain. The majority of these
emissions (approximately 95%) are generated
upstream by cement and lime manufacturers.
This is a result of the chemical reaction that
occurs when carbon is removed from limestone
when it is heated to produce clinker for cement or
lime. The CO
2
released is an unavoidable conse-
quence of this reaction, as the limestone has
absorbed CO
2
during its formation – just like a
tree does.
H+H was the first manufacturer of
aircrete (AAC) and calcium silicate
(CSU) products to have science-based
targets approved in line with a 1.5-degree
scenario.
H+H International | Annual Report 2024 | 64In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Value chain emissions from extraction
and processing of raw materials
for production (negative)
As previously mentioned, a significant amount of
our emissions derives from our upstream value
chain (cement and lime producers), causing a
negative impact over the short and medium term.
With our net zero target we do not expect to have
negative impact in the long term.
Climate change risks and opportunities
In 2022, we undertook a climate scenario
analysis using the TCFD guidelines, which was
refreshed in 2024. The analysis considered H+H’s
full value chain, including our own operations,
upstream cement and lime producers and down-
stream customers. No part of the value chain
was excluded from the scenario analysis. Nor
were any material physical risks or transition
risks excluded. The climate scenario analysis is
described in disclosure requirement IRO-1.
The scenario analysis identified the following four
transition risks and one opportunity. No material
physical risks were identified.
The findings from the scenario analysis are incor-
porated in our strategy. Actions to mitigate the
transition risks and capture the opportunity are
described in disclosure requirement E1-3. The
scenario analysis determined that after these
mitigations are applied, H+H has no net-material
financial impact in the short, medium, and long
term.
E1-2 Policies related to climate
change mitigation and adaptation
H+H’s Environmental, Social & Governance Policy
(ESG Policy) addresses climate change mitigation
by including our commitment to reduce scope 1,
2 & 3 emissions in line with net zero emissions by
2050, and the short-term targets we have set to
achieve this. By covering all emission scopes, the
policy applies to emissions from our own opera-
tions, as well as our upstream and downstream
value chain.
The policy does not address energy efficiency,
climate change adaptation and renewable energy
deployment. However we plan to expand our ESG
Policy to include this.
The policy is distributed via H+H’s policy manage-
ment system in the Group intranet. Stakeholders
can access the policy via our group website. The
policy is used to communicate our ambitions
within ESG on a high level to the entire organisa-
tion. In daily operations, the policy is supported
by process descriptions and manuals, which
describe in detail our expectations and actions.
These are made in cooperation with the relevant
internal, local stakeholders to ensure ownership.
Group Management has overall responsibility for
the ESG policy, while the regional Managing Direc-
tors are responsible for implementing it within
their countries as heads of their respective legal
entities. The policy is reviewed annually by Group
Management.
E1-3 Actions and resources in relation
to climate change policies
Mitigating actions towards climate risks
H+H has developed a roadmap until 2030 that
reduces our carbon emissions. A dedicated
amount of the CAPEX budget (between 5% and
15%) is annually allocated to fund emissions
reduction projects.
We address our scope 1 & 2 emissions through the
following levers and actions:
1. Increasing the share of renewable energy
H+H’s use of renewable electricity will increase
by purchasing either RECs or PPAs. In 2024, we
increased the use of renewable electricity in our
plants in CWE and reached 100% renewable
electricity in our consumption. We have therefore
completed this target one year ahead of schedule.
2. Investments in energy efficiency
We are continuously implementing energy-saving
projects and embed these in other upgrade
projects. During 2024, these have included
burner upgrades, valve replacements and general
equipment improvements. In addition to general
improvements, we will focus on projects related to
heat recovery and steam in 2025. These upgrades
and modernisations are essential in optimising
our manufacturing footprint and equipment, and
the investments do not solely rely on sustaina-
bility decision criteria.
3. Improved energy mix
We are improving our energy sources by
converting from coal to natural gas and plan to
convert from natural gas to fossil-free energy
sources, such as green hydrogen when reasonably
possible. We have already begun our energy mix
improvement by converting one plant in Poland
from coal to natural gas.
4. Sup ply-ch ain dec arbonis ation
H+H addresses our scope 3 emissions through
the following levers and actions:
Low-carbon cement and lime
We focus on having a continuous dialogue with our
lime and cement producers. We will collaborate
on carbon reduction projects with those who have
committed to a science-based target or have a
credible emissions reduction pathway to net zero
emissions by 2050. According to these, net zero
will be achieved mainly through the use of carbon
capture storage and utilisation (CCSU) and lower
carbon ingredients, switching from fossil fuels
to renewable energy to heat kilns, and through
recarbonation. In 2024, we have tested the use of
new lime with initial positive results but with still
more testing and development needed.
H+H International | Annual Report 2024 | 65In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
100%
10% -17%
-4%
-35%
54%
2019 baseline
emissions
Organic growth and
improvements, net
(2019-2030)
Increase share of
renewable electricity
(2022-2025)
Investments in
energy eciency
(2020-2030)
Improved
energy mix
(2022-2030)
2030
emissions
0
20
40
60
80
100
120
A reduction of clinker content in cement used for
AAC products has already resulted in a reduction
in scope 3 emissions - see disclosure requirement
E1-9 for further details.
Low emissions transport
The emissions-reduction pathway for the trans-
port industry requires transport companies to
reduce emissions by approximately 30% by 2030.
We expect our transport suppliers to provide such
low-emissions transport services in the future.
E1-4 Targets related to climate
change mitigation and adaptation
H+H had three climate-related targets covering
emissions from our own operations as well as our
supply-chain emissions, and energy consump-
tion. The emissions reduction targets for 2030
have been verified by the Science Based Targets
initiative as being in line with the 1.5°C scenario.
The energy consumption target was reassessed
during 2024 and it was decided to remove it as a
separate target, as we see it as part of our SBTi
strategy.
Baseline Target
SBTI targets Unit 2019 2030 2050
Scope 1+2 CO
2
emissions Tonnes 212,997* 115,018* 0
Scope 3 CO
2
intensity kg/m
3
161.9 125.8 0
* 28% of the baseline emissions are related to scope 2. For the 2030 target, 0% are related to scope 2.
H+H's roadmap to reduce emissions for scope 1+2 in line with its science-based target
Please refer to the 'Mission Zero' section under
'Strategic Focus Areas' for specific actions to
reach net zero by 2050.
The baseline year 2019 is based on the fact that
we prepared our SBTi-submission during 2021
and our most recent baseline year (2020) was
not representative due to the Covid-19 pandemic.
2019 was the most recent year to choose and
represents a “normal” production year in H+H.
The most critical assumptions in our roadmap is
the development of fossil-free energy in opera-
tions and the use of carbon capture storage and
utilisation from our suppliers. Scope 2 calculated
in the baseline and target setting is based on the
market-based approach.
For our current performance against target,
please refer to our “GHG emissions” section.
H+H International | Annual Report 2024 | 66In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
24%
0%
61%
4%
44k
MWh
18k
MWh
99k
MWh
2k
MWh
255k
MWh
11%
19%
3%
65%
5%
8%
25k
MWh
41k
MWh
93k
MWh
12k
MWh
315k
MWh
20232024
Natural gasCoal
Renewable
electricity
Oil Fossil steam
and electricity
Breakdown of energy comsumption (MWh)
Energy intensity per net revenue 2023¹ 2024 %
Total energy consumption from activities in high climate impact sectors per
net-revenue from activities in high climate impact sectors (MWh/Monetary unit) 182 152 -17%
Total energy consumption (MJ/m
3
) 575 549 -5%
Total energy consumption (MWH) 486.095 417.035 -14%
Total net revenue (mDKK) 2.672 2.747 3%
1
Not covered by the Independent Auditor’s limited assurance report
E1-5 Energy consumption and mix
Our energy consumption mainly consists of
natural gas and coal for generating steam into the
autoclaves as well as electricity used to operate
plant equipment. As part of our science-based
target we are working towards lowering the mix
from coal and introducing renewable energy into
the mix – such as biogas, hydrogen, or biomass –
to generate steam. Additionally, all our plants are
committed to efficient energy management and
are ISO 50001 certified.
In 2024, we saw the full effect of our restructur-
ing-actions done in 2023 with the closing of inef-
ficient plants and optimising production patterns.
This has resulted in a record low energy consump-
tion of 549 MJ per m
3
showing that we are on the
right track with our HOME strategy.
Unfortunately we did not meet our 2024 target of
525 MJ per m
3
but we are still satisfied with the
result, given that the current market situation is
still under pressure, making it more difficult to
fully optimise our plant output.
The increase of coal is due to a relative higher
production coming from our Polish sites during
2024.
Energy intensity based on net revenue
The decrease in energy per net revenue is related
to more efficiency and the production volume
being higher than the sales volume. 100% of H+H's
activities are in the high climate impact sector.
E1-6 Gross scopes 1, 2, 3 and
total GHG emissions
The methodologies, significant assumptions and
emission factors used to calculate H+H’s GHG
emissions are provided in the Environmental
accounting policy section.
Scope 1+2
In 2024, we have been able to further reduce our
carbon intensity emissions to a record low 32.5kg
per m
3
which is 28% lower than our baseline
of 45.3kg per m
3
. This reflects the actions and
investments to improve the CO
2
footprint of our
plants. This year, our plants are consuming 100%
renewable electricity and we have continued our
energy improvement by using 5% less energy per
m
3
produced compared to last year.
For 2025, we will continue to implement further
CO
2
-reducing projects.
Specific climate ambitions
• 100% share of renewable electricity
(incl. PPAs / RECs) by 2024 - Done √
• Convert all coal plants to natural gas,
or other more sustainable sources, by
2030
• Have at least one scope 1+2 neutral
plant by 2030
H+H International | Annual Report 2024 | 67In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Retrospective Milestones and target years
Base
year (2019) 2023¹ 2024 % vs. LY 2030
Annual
% target
/ Base year
Scope 1 GHG emissions
Gross scope 1 GHG emissions (tCO
2
eq) 153,887 93,602* 81,884 -13% 115,018
2
4.2%
Percentage of scope 1 GHG emissions from regulated
emission trading schemes (%) 0% 0% 0% 0%
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions (tCO
2
eq) 59,109 29,369 25,522 -13%
Gross market-based scope 2 GHG emissions (tCO
2
eq) 59,109 15,198* 6,885 -55%
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG emissions (tCO
2
eq) 758,327 442,582 394,435 -11%
Reduce by 22%
per m
3
2.0%
1 Purchased goods and services 700,604 400,600 351,484 -12%
3 Fuel and energy-related activities
(not included in scope 1 or scope 2) 34,964 23,071 19,234 -17%
4 Upstream transportation and distribution 13,656 10,932 14,680 34%
9 Downstream transportation 9,104 7,978 9,038 13%
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq) 971,324 565,553 501,842 -11%
Total GHG emissions (market-based) (tCO
2
eq) 971,324 551,381 483,205 -12%
¹ Not covered by the Independent Auditor’s limited assurance report | ² Scope 1+2 is a combined target
* ESG figure subject to limited assurance in 2023
GHG Intensity based on net revenue
GHG intensity per net revenue 2023¹ 2024 %
Total GHG emissions (location-based) per net revenue (tCO
2
eq/Monetary unit) 212 183 -14%
Total GHG emissions (market-based) per net revenue (tCO
2
eq/Monetary unit) 206 176 -15%
Net revenue 2,672 2,747 3%
1
Not covered by the Independent Auditor’s limited assurance report
Scope 3
Scope 3 intensity was 144.2kg per m
3
which is an
improvement of 1% compared to last year and ahead
of our science-based target for 2024. The positive
development was driven by improvement in emission
factors from our suppliers, as they continue to invest in
reducing their carbon footprint.
For 2025, we continue collaborating with cement and
lime producers that have committed to a science-based
target or have a credible emissions reduction pathway.
While concrete projects are underway, we do not yet
know the quantitative impact.
Total emissions
As shown in the GHG table, all our nominal emissions
have declined due to the market downturn and general
improvements.
E1-9 Anticipated financial effects from
material physical and transition risks and
potential climate-related opportunities
H+H has no net-material financial impact in the short,
medium, and long term as described in the General
Information section.
As these financial effects do not include all the require-
ments of E1-9, We have opted to exercise the phase-in
allowance to omit the financial effects.
H+H International | Annual Report 2024 | 68In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Controls
Data regarding energy consumption and our GHG
emissions are reported through the operations
management system that follows normal financial
processes to ensure consistency and is validated
against the external financial reporting.
The data is verified through internal controls,
analysis, benchmarks, and monthly business
meetings.
Unless stated no numbers or metrics have been
validated by any external body other than the
assurance provider.
Definitions
Climate
• CO
2
e scope 1 is calculated as combusted fuel
type x conversion factor per fuel type. For 1
tonnes of coal a conversion factor between 19
and 23 to GJ is used, based on the quality of the
product. For other combustion fuels an emis-
sion factor is applied based on DEFRA factors
• CO
2
e scope 2 is calculated as purchased MWh
x conversion factor of 3.6 to GJ. For both loca-
tion- and market-based electricity, emission
factors are based on AIB. Additionally, for
market-based we adjust for the purchase of
RECs in our emissions. We only use RECs when
calculating our market-based emissions
• CO
2
e per m³ (scope 1), CO
2
e per m³ (scope 2)
and CO
2
e per m³ (scope 3) are calculated as
scope 1, scope 2 (market based) and scope 3
divided by net-production volume
• During our initial scope 3 assessment, we
screened all 15 types of activities. Besides
activity 1,3,4 and 9, remaining activities were
deemed immaterial and out of our reporting
scope. For scope 3 activities 1 and 3, we have
used primary data for all sources and for activ-
ities 4 and 9, we have used industry generic
factors
• CO
2
e scope 3 category 1 is calculated as
purchased materials in scope x efficiency
factor. Where efficiency factors are disclosed by
the supplier this is used. If such are not available
generic industry efficiency factors are applied
• CO
2
e scope 3 category 3 is calculated as
consumed energy x efficiency factor from
DEFRA
• CO
2
e scope 3 category 4 and 9 are calculated as
total transported km of our products x generic
transport efficiency factor
• Total energy is calculated as combusted fuel type
x power factor per fuel type + used electricity
• Total energy per m³ is calculated as total energy
divided by production volume
• Production volume is defined as produced AAC
and CSU (net) measured in m
3
Environmental accounting policy
H+H International | Annual Report 2024 | 69In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
EU Taxonomy
H+H’s EU Taxonomy disclosure for
the annual reporting period of 2024
has been prepared in accordance
with the Taxonomy Regulation EU
(2020/852) and its supplementing
delegated acts.
The disclosure covers the taxonomy-eligible and
taxonomy-aligned economic activities and their
financial KPIs as a proportion of the Group’s
turnover, capital expenditure (CAPEX), and opera-
tional expenditure (OPEX) in 2024.
Reporting principles
Due to the EU Taxonomy being under continuous
development and the evolving aspect of the Regu-
lation, we have decided to reassess the reporting
requirement and update our accounting principles
to be more in line with the current legislative envi-
ronment. Figures for 2023 have therefore been
restated. We will continue to follow the develop-
ment of the regulation and assess our approach
accordingly.
Our economic activities are considered regardless
of their geographical location, whether inside or
outside of the European Union.
Economic activities
Taxonomy-eligible economic activities
According to note 3 of the consolidated financial
statement, H+H revenue streams consist of sale
of goods and related transport services. As such,
we have concluded that the following economic
activities qualify as taxonomy eligible economic
activities:
• (3.5) Manufacture of energy-efficient building
equipment
• (6.6) Freight transport services by road
Both H+H’s product groups (AAC and CSU) are
classified under NACE code 23.61 and are as such
covered by the Delegated Act (EU) 2021/2139 of
June 4, 2021 in Chapter 3.5 as key components
for external wall systems. The product groups
contribute to achieving the climate change miti-
gation target if they fulfil the technical screening
criteria of having a U-value lower or equal to 0,5
W/m
2
K. For external wall systems, a U-value lower
than 0.5 W/m²K is required by law in all coun-
tries in which we produce and sell our products.
As such, the substantial contribution screening
criteria are met.
Products from both AAC and CSU product groups
have multiple applications. In addition to being
used for external walls, they can also be used as
partition walls. When determining which of our
products that are within scope, we have looked
at the intended use of the products. Turnover
from products where the intended use is to be
part of an external wall system is reported as
eligible, whereas turnover from products where
the intended use is partition walls is reported as
not eligible. Turnover from accessories needed
to build the external wall such as mortar and
glue are also reported as eligible because such
accessories are considered to be key components
in an external wall system. Pallets used for trans-
portation are not included in the scope since only
plastic pallets are eligible under the EU Taxonomy.
When calculating the taxonomy-eligible turnover
under CCM 3.5 for products which can be used
in both external walls and partition walls, we
have used allocation keys to determine the split
between sale of products used for external walls
and partition walls. As each of the countries in
which we sell our products have different ways of
building, allocation keys are based on individual
market analysis. Analyses were made by local
sales departments which have indepth knowledge
of the local building markets. Hence, we assess
their input to be highly valid.
Transport of goods for sale is a separate revenue
stream classified under NACE code 49.41 which is
covered by Chapter 6.6 ‘Freight transport services
by road’ in the delegated act.
Taxonomy-eligible turnover
During our screening, we identified 69% eligible
turnover. The taxonomy-eligible turnover refers to
revenue from sales of products and key compo-
nents used for external walls (CCM 3.5), as well as
freight revenue derived from sales of external wall
building materials (CCM 6.6). Revenue is defined
as revenue included in the consolidated financial
statements for the year 2024.
Taxonomy-eligible CAPEX
During our screening, we identified 62% eligible
CAPEX. The taxonomy-eligible CAPEX is divided
between production related activities (CCM 3.5)
and activities related to transport (CCM 6.5 and
CCM 6.6). To determine the proportion of produc-
tion related CAPEX associated with taxonomy-eli-
H+H International | Annual Report 2024 | 70In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
gible economic activities, the same allocation key
as for turnover is used. This is based on the fact
that our plants produce both eligible and non-el-
igible products, and it is therefore not possible
to do individual distinctions. Taxonomy eligible
activity related to transport contains leased
company cars (CCM 6.5) and forklifts (CCM 6.6).
CAPEX is defined as additions of tangible assets
and intangible assets (excluding goodwill) as
included in the consolidated financial statements
for the year 2024, note 13 & 14.
Taxonomy-eligible OPEX
During our screening, we identified 63% eligible
OPEX. Operating expenditures as per the EU
Taxonomy are defined as directly incurred,
non-capitalizable cost relating to research and
development, building renovations, short-term
leases, and the repair and maintenance of prop-
erty, plant, and equipment in 2024. To determine
the proportion of OPEX from products or services
associated with taxonomy-eligible economic
activities, the same allocation key as for turnover
is used for the same reason as when determining
taxonomy-eligible CAPEX.
Taxonomy-aligned economic activities
Our economic activities are considered taxono-
my-aligned if they:
• make a substantial contribution to the achieve-
ment of one or more of the six environmental
objectives set out in the Taxonomy Regulation
• do not significantly harm any of the other envi-
ronmental objectives, and
• are carried out in compliance with the minimum
social safeguards.
Do no significant harm
Other environmental
objectives (2–6) UK CWE Poland
Climate change adaptation √ As part of our ESRS reporting and work towards having targets validated by the SBTi, we have performed climate risk assessments.
Sustainable use and protection of
water and marine resources
√ We have a water use and protection
management plan in place as part of our
ISO 14001 certification.
We believe that we do not do any significant harm, but we are working towards getting the necessary documen-
tation requirements such as an ISO 14001 certification.
Transition to a circular economy √ Our products are designed for high durability and recyclability. We employ a ‘zero waste to landfill’ principle and recycle our AAC waste back into production.
Pollution prevention
and control
√ No substances of concern are used in H+H’s prod-
ucts and no accessories from other vendors are
sold from these plants.
No substances of concern are used in H+H’s products. We are currently working with vendors to document
that our accessories sold do not contain substances of concern.
Protection and restoration of
biodiversity
√ Dedicated efforts towards protection of biodiversity
are part of our ISO 14001 and BES: 6001 certifica-
tions, ensuring that the generic criteria for protec-
tion and restoration of biodiversity are met
We believe that we do not do any significant harm, but we are working towards getting the necessary docu-
mentation requirements such as an ISO 14001 certification.
√ Achieved in all regions
√ Achieved in the UK
As described above, H+H assesses that a certain
share of our turnover contributes to climate
change mitigation by meeting the substantial
contribution criteria for external wall systems with
U-value lower or equal to 0.5 W/ m
2
K.
For an economic activity to be classified as
sustainable under the taxonomy, it must fulfil the
criteria for not doing significant harm under the
other environmental objectives included in the
taxonomy.
While environmental management is done in all
regions, the approach is not consistent across
the Group, depending on region and depending
on the individual plants. Below is an overview of
our initiatives in our UK plants where we meet
the objectives for aligned economic activities.
Turnover from these plants is reported as taxon-
omy-aligned economic activity. In addition, we
describe initiatives in our other regions where we
only partially meet the objectives.
H+H International | Annual Report 2024 | 71In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
42%
38%
20%
21%
42%
37%
27%
42%
31%
Taxonomy-eligible activities
Taxonomy-aligned acitvities
Taxonomy-non-eligible activities
Minimum safeguards
Compliance with minimum social safeguards
essentially relates to the areas of human and
labour rights, corruption prevention, fair taxation
and fair competition. H+H have implemented
processes and guidelines that ensure compliance
with all minimum standards in line with the OECD
Guidelines for Multinational Enterprises, the UN
Guiding Principles on Business and Human Rights
and the Declaration by the International Labour
Organization. Our efforts are further described in
the Governance section, when reporting on our
Code of Conduct, Anti-corruption policy and Tax
policy.
Turnover from the regions where not all DNHS
criteria are met is reported under section A.2.
Taxonomy-eligible but not environmentally
sustainable activities (Taxonomy-non-aligned
activities).
The eligible economic activity under CCM 6.6
does not meet the substantial contribution criteria
(zero tailpipe emissions) and is as such reported
under section A.2. Taxonomy-eligible but not
environmentally sustainable activities (Taxono-
my-non-aligned activities).
EU Taxonomy Disclosure
2024 Revenue CAPEX OPEX
Taxonomy-eligible activities 69% 62% 63%
Taxonomy-non-eligible activities 31% 38% 37%
Taxonomy-aligned acitvities 27% 20% 21%
Taxonomy-non-aligned acitvities 73% 80% 79%
CAPEX
Revenue
OPEX
Nuclear and fossil gas related activities
1 The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle. No
2 The undertaking carries out, funds or has exposures to construction and safe operation of new
nuclear installations to produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production, as well as their safety upgrades, using
best available technologies. No
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations
that produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production from nuclear energy, as well as their safety upgrades. No
Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity gener-
ation facilities that produce electricity using fossil gaseous fuels. No
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels. No
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of
heat generation facilities that produce heat/cool using fossil gaseous fuels. No
H+H International | Annual Report 2024 | 72In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")
Economic activities - Turnover (1)
Code (2)
Absolute turnover
(m DKK) (3)
Proportion of
turnover 2024 (%) (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum
Safeguards (17)
Taxonomy aligned (A.1.)
or eligble (A.2.) turn over,
2023 (%) (18)
Category
(enabling activity) (19)
Category
(transitional activity)
(20)
A. Taxonomy – Eligible Activities
A1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy-efficient building equipment CCM 3.5 748 27% Y N/A N/A N /A N/A N/A N/A Y Y Y Y Y Y 25%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) 748 27% N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A N /A 25%
Of which Enabling 0 0% N/A N/A N /A N/A N/A N/A N/A N /A N/A N/A N /A N/A N /A 0% E
Of which Transitional 0 0% N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A 0% T
A2. Taxonomy-eligible but not aligned activities
Manufacture of energy-efficient building equipment CCM 3.5 889 32% Y N/A N/A N /A N/A N /A N/A Y N/A N /A Y N/A Y 35%
Freight transport services by road CCM 6.6 268 10% Y N /A N/A N /A N/A N/A N /A N/A N/A N /A N/A N/A N/A 9%
Turnover of not-aligned activities 1,157 42% 44%
Turnover of taxonomy-eligible activities (A1+A2) 1,905 69% 70%
A. Taxonomy – Non-Eligible Activities
B. Turnover of non-eligible activities 843 31%
Total 2,747 100%
Quantitative breakdown of taxonomy-aligned turnover
The primary sources of turnover contributing to the numerator of the turnover KPI in 2024 are generation and sale of blocks and related accessories in the UK region (DKK 748 million)
EU Taxonomy – Turnover
H+H International | Annual Report 2024 | 73In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")
Economic activities - CAPEX (1)
Code (2)
Absolute CAPEX
(m DKK) (3)
Proportion of
CAPEX 2024 (%) (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum
Safeguards (17)
Taxonomy aligned (A.1.)
or eligble (A.2.) CAPEX,
2023 (%) (18)
Category
(enabling activity) (19)
Category
(transitional activity)
(20)
A. Taxonomy – Eligible Activities
A1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy-efficient building equipment CCM 3.5 35 20% Y N/A N /A N/A N /A N/A N/A Y Y Y Y Y Y 20%
CAPEX of aligned activities 35 20% N/A N/A N /A N/A N/A N /A N/A N /A N/A N/A N /A N/A N /A 20%
Of which Enabling 0 0% N/A N/A N /A N/A N/A N/A N/A N /A N/A N/A N /A N/A N /A 0% E
Of which Transitional 0 0% N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A 0% T
A2. Taxonomy-eligible but not aligned activities
Manufacture of energy-efficient building equipment CCM 3.5 56 32% Y N /A N/A N/A N/A N/A N /A Y N/A N/A Y N /A Y 35%
Freight transport services by road CCM 6.6 17 10% Y N /A N/A N /A N/A N/A N /A N/A N/A N /A N/A N /A N/A 9%
CAPEX of non-aligned activities 73 42% 44%
Total (A1+A2) 108 67% 64%
A. Taxonomy – Non-Eligible Activities
CAPEX of non-eligible activities (B) 66 38%
Total (A+B) 173 100%
No formal CAPEX-plan in relation to EU-taxonomy has been developed in 2024, but will be reassessed in 2025.
Quantitative breakdown of taxonomy-aligned CAPEX
The primary sources of CAPEX contributing to the numerator of the CAPEX KPI in 2024 are additions from tangible and intangible assests from the UK region (DKK 43 million)
EU Taxonomy – CAPEX
H+H International | Annual Report 2024 | 74In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial year 2024 2024 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")
Economic activities - OPEX (1)
Code (2)
Absolute OPEX
(m DKK) (3)
Proportion of
OPEX 2024 (%) (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum
Safeguards (17)
Taxonomy aligned (A.1.)
or eligble (A.2.) OPEX,
2023 (%) (18)
Category
(enabling activity) (19)
Category
(transitional activity)
(20)
A. Taxonomy – ligible Activities
A1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy-efficient building equipment CCM 3.5 27 21% Y N/A N/A N /A N/A N/A N /A Y Y Y Y Y Y 21%
OPEX of environmentally sustainable activities
(Taxonomy-aligned) 27 21% N/A N /A N/A N/A N /A N/A N /A N/A N/A N /A N/A N/A N/A 21%
Of which Enabling 0 0% N/A N/A N /A N/A N/A N/A N/A N /A N/A N/A N /A N/A N /A 0% E
Of which Transitional 0 0% N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A N /A N/A 0% T
A2. Taxonomy-eligible but not aligned activities
Manufacture of energy-efficient building equipment CCM 3.5 41 32% Y N/A N/A N/A N /A N/A N/A N /A N/A N/A Y N /A Y 35%
Freight transport services by road CCM 6.6 12 10% Y N/A N/A N/A N/A N /A N/A N/A N /A N/A N/A N/A N/A 9%
OPEX of non-aligned activities 53 42% 44%
Total (A1+A2) 80 63% 65%
A. Taxonomy – Non-Eligible Activities
OPEX of non-eligible activities (B) 46 37%
Total (A+B) 126 100%
H+H does not have any eligible OPEX, hence no OPEX is allocated to the numerator.
Quantitative breakdown of taxonomy-aligned OPEX
The primary sources of OPEX contributing to the numerator of the OPEX KPI in 2024 are maintenance and repair costs from the UK region (DKK 27 million)
EU Taxonomy – OPEX
H+H International | Annual Report 2024 | 75In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
List of material disclosure requirements Page reference
S1 – Own workforce
SBM-2 Interests and views of stakeholders Page 52
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
Pages 76, 78, 82
S1-1 Policies related to own workforce* Pages 77-79, 82
S1-2 Processes for engaging with own workforce and workers' representatives Page 82
S1-3 Processes to remediate negative impacts and channels for own workforce Page 82
S1-4 Taking action on material impacts on own workforce, and approaches to managing risks
and pursuing opportunities related to own workforce, and effectiveness of those actions
Pages 77, 79, 82
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
Pages 77, 79-80, 83
S1-6 Characteristics of the undertaking’s employees Pages 80-81
S1-7 Characteristics of non-employees in the undertaking’s own workforce Pages 80-81
S1-8 Social dialogue Page 83
S1-9 Diversity metrics Page 81
S1-13 Training and skills development metrics Page 83
S1-14 Health & Safety metrics Pages 77-78
S1-15 Work-life balance metrics Page 83
S1-16 Remuneration metrics (pay gap and total remuneration) Page 81
S1-17 Incidents, complaints and severe human rights impacts Page 83
* None of our Social policies are inconsistent with UN Guiding Principles on Business and Human Rights
Social information
People are the foundation for our success. We aim to provide a
safe, attractive, and meaningful workplace for our employees.
In this section, we take a thematic approach to the sustainability
topics identified in our materiality assessment.
Production materials
While our finished products do not pose any
health risks, employees working in our plants can
potentially be exposed to the following substances
used in production that pose health risks:
• Silicate dust, a known carcinogen when
exposed above a known limit
• Mineral oils that can cause dermatitis
• Aluminium dust which is an irritant but with no
recognised inhalation, oral or dermal chronic
effects
• Alkalis and acids which are harmful and can
cause chronic effects
The impacts affect employees and non-em-
ployees, including self-employed people and
people provided by third parties. The impacts
occur in all our plants over the short, medium and
long term. They are systemic due to the nature
of our production. Due to the low exposure to
the above substances it was not identified as a
material risk. No material opportunities related to
health & safety were identified in the materiality
assessment.
Health and Safety
ESRS 2 SBM-3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
In H+H we believe that everyone should come
to work and return home injury-free. Working in
an industrial plant comes with inherent health
and safety risks from the heavy equipment and
substances used in the production process.
Managing these risks effectively is key to main-
taining a strong safety performance as well as
enabling us to provide healthy, safe, and secure
working conditions for all people working on our
sites.
This mindset is transformed into our 'ZERO
HARM' strategy as disclosed in our Business and
strategy section. Please refer to section Zero
Harm.
Material health & safety impacts
In our materiality assessment, we identified the
following material health & safety impacts:
Industrial accidents
The majority of our employees work in our plants
where they operate heavy machinery with a
potential high risk of accidents which can result in
the direct impact of life-altering injuries or death.
In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2024 | 76Financial statements
Impacts, risks and opportunities
management
To effectively manage our impacts and to main-
tain a strong safety performance, we have a Group
Health & Safety Policy, a strategy for 2024-2026
and a health and safety management system.
In practice, we prevent safety incidents through
regular training in Health & Safety, monitoring of
exposure levels of substances used in production,
prevention and access controls, incident manage-
ment, proper PPE, continuous and regular assess-
ment of plants, offices, processes, and equipment
as well as target setting and progress measure-
ment across the Group.
S1-1 Policies
Health & Safety Policy
It is our key priority to provide a safe and healthy
work environment. This is the core objective of
our Group H&S Policy (H&S Policy), and it is the
foundation on which we prevent, mitigate, and
remediate all of H+H’s impacts elated to H&S.
The COO has overall responsibility for the policy,
while the regional Managing Directors are respon-
sible for implementation within their countries
as heads of their respective legal entities. They
are supported by the regional Operations Direc-
tors, local safety officers and the Group Health &
Safety leadership team.
The policy covers H+H employees across the
entire workforce but does not include workers in
the value chain. The policy is distributed via our
policy management system and is prominently
placed on notice boards at all sites and on the
Group website. All employees are required to
confirm, either physically or digitally, that they
have read and understood the policy.
The H&S Policy is reviewed annually by Group
Management and the Group H&S Director. The
review is based on our Maturity Audit process,
and on input provided by the functional manage-
ment teams and their employees.
In daily operations, the policy is supported by
topic specific standards and guidance, which
addresses the risks and impacts directly.
S1-4 Actions in 2024
At the beginning of 2024, a new H&S strategy
and vision for 2024-2026, titled ZERO HARM,
was launched together with a major communica-
tions campaign targeting all employees. The new
strategy focuses on behavioural-based safety
and on driving safety through the line to embed a
culture that embraces safety across our opera-
tions, moving towards our ambition of zero harm.
When working with heavy machinery, even a small
lapse of attention can have dire consequences.
We therefore want to foster a culture, where
safety is always top of mind, highlighting each
individual’s responsibility for ensuring their own
safety and that of their colleagues. In the event of
an incident or high potential near miss incident,
communication is disseminated throughout the
organisation with follow-up on actions to prevent
reoccurrence.
To mitigate the impact related to exposure to
various production materials, we provide the
appropriate PPE as well as regularly monitoring
exposure levels of substances
All plants are subject to both internal and external
audits using our Maturity Audit Model with each
plant having a Safety Improvement Plan which
is actively monitored to gauge the effectiveness
of our actions and initiatives. To further evaluate
the effectiveness of our initiatives, performance
on H&S KPIs including absence and incidents
is monitored monthly and reported to Group
Management.
In 2025 we plan to continue the focus on behav-
ioural based safety via training, communication
and lessons learned from incidents and high
potential events. This includes training employees
to have a more proactive approach to spotting
potential hazards and unsafe conditions and
behaviours. Our aim is to further improve our
safety culture shifting from a reactive focus to a
pro-active and positive one with the end goal of
zero harm.
S1-5 Targets
To measure our progress on safety, we have a
target related to our Lost Time Incident Frequency
(LTIF) rate which was included in the short-term
incentive plan for 2024 to highlight its impor-
tance. Our current target concluded in 2024 and
we have therefore set a new target for 2030 where
we want to achieve a long-term improved LTIF rate
of 2.1 compared to our historic performance. The
rate is measured every year to track progress on
the target. Based on the number of incidents and
the initiatives we have embedded in the business,
we projected an improved H&S performance to
determine the specific KPI we want to reach and
when. The new target is a result of the collective
efforts between Group Management, the regional
Managing and Operations Directors, as well as the
H&S leaders across the Group.
S1-14 Health and safety metrics
For the tenth consecutive year, there were no
fatalities at H+H. In 2024 we saw another record
result with an LTIF rate of 0.9, which is well below
our 5 year target of 3.5 in 2024. We attribute our
positive result to our continued focus on leading
in safety for all levels of operational management,
behavioural safety and close follow-up of inci-
dents and high potential near-miss incidents.
Short-term sickness absence has improved from
last year, and we managed to reach our target
level of 8 days per year per FTE. It was decided by
Group management not to renew the target.
H+H International | Annual Report 2024 | 77In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2024 2023¹ 2022¹ 2021¹
Sickness absence Days per FTE 12 14 13 12
Sickness absence, short-term Days per FTE 8 10 11 10
Fatalities (including own workforce and value chain
workers)
Headcount
0 0 0 0
Fatalities as a result of work-related injuries AND
work-related ill health 0 0 0 0
Lost-time incident frequency (LTIF) Incidents per mil. hours 0.9 *3.4 3.6 5.5
Lost days to work-related injuries and fatalities
from work-related accidents, work-related ill health
and fatalities from ill health
83 787 313 263
Total recordable incidents 7 18 77 103
Total recordable contractor incidents 0 0 3 3
Total recordable incident rate (TRIR) Incidents per mil. hours 3 7 25 35
Number of cases of recordable work-related ill health 0 0
Near miss frequency rate (NMFR) Reports per mil. hours 2.757
People in own workforce covered by H+H’s
H&S Management system
%
100% 100%
* ESG figure subject to limited assurance in 2023
1
Not covered by the Independent Auditor’s limited assurance report
Equal treatment & opportunities for all
ESRS 2 SBM-3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
We know people are different and we believe that
differences are what enable us to see new oppor-
tunities and create better solutions. We want all
employees and stakeholders to feel that their
contribution is valid, and we do not tolerate any
form of discrimination.
We do not have a formal link to our Group strategy
and business model, as these topics are driven
locally by the regional management teams.
Material impacts
In the materiality assessment, we identified the
following material impacts related to equal treat-
ment and opportunities:
Gender equality & equal pay
We are committed to equal pay for equal work,
promoting gender equality and ensuring equal
access to resources and opportunities regardless
of gender. This has an impact on our workforce as
we believe there are clear links between perceived
and actual equality to employee cohesion and
well-being. At the moment we do not have suffi-
cient data to determine whether the impact
is systemic or not but further investigation is
planned for 2025 in preparation for the EU Direc-
tive on pay transparency. Our current belief is that
we enforce equal pay for equal work in all regions.
Anti-harassment
As employers we are responsible for providing
a harassment-free work environment and thus
have an impact on our employees. We believe the
impact to be non-systemic, occurring over the
short and medium term affecting employees in
our own workforce.
Gender diversity
The building materials industry is not traditionally
known for being gender diverse and we therefore
risk fostering workplaces with low diversity. As
a result we believe this impact to be systemic in
nature and not related to individual incidents.
Both impacts related to equal treatment occur
over the short and medium term. Impact related
to equal pay only affects those directly employed
by H+H. Impacts related to diversity affects
both our own employees, non-employees (both
self-employed people and people provided by
third party organisations) and contractors. No
material risks or opportunities were identified in
the materiality assessment.
Impacts, risks, and opportunities
management
We approach the impacts related to equal treat-
ment through a mixture of Group and local initia-
tives. We believe a safe and inclusive work culture
is best achieved by encouraging our employees to
speak up and take ownership of creating a work
environment they feel they belong to, with clear
support from senior management.
S1-1 Policies related to equal treatment
Diversity Policy
The core objective of H+H’s Group Diversity Policy
is to foster an inclusive and open working climate
where diversity is embraced and promoted. By
making our principles on diversity clear, we want
to mitigate negative impacts related to lack of
diversity.
While gender is one dimension of diversity,
we fully recognise that diversity is any aspect
that differentiates our employees and enables
diversity of thought. This includes ethnicity,
age, national origin or citizenship, religion or
belief, political conviction, sexual orientation,
marital status, pregnancy and maternity, disa-
bility or genetic information or any other legally
H+H International | Annual Report 2024 | 78In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
protected categories. We do not tolerate any
form of discrimination towards employees or
stakeholders. All reports of discrimination and
harassment are fully investigated and may result
in disciplinary actions or employment-related
consequences for the perpetrator. Besides the
Code of Conduct, we currently do not have any
other specific Group policies aimed at eliminating
discrimination or harassment.
The policy applies across all of H+H and includes
but is not limited to recruitment, promotion and
development opportunities. The policy is commu-
nicated to all new employees, and in the case of
updates, to the entire workforce. The policy is also
available on our Group website.
The Board of Directors has adopted the Group
Diversity Policy while the CEO is overall respon-
sible. Regional Managing Directors are respon-
sible for implementation within their countries as
heads of their respective legal entities.
S1-1 Policies related to human rights
Human Rights Policy
We strongly support human rights and employee
rights as set out in the UN Universal Declaration
of Human Rights and by the International Labour
Organization. We have a dedicated Human Rights
policy and it is further stated in our Code of
Conduct which is the foundation for our compli-
ance and other policies.
The purpose of our Human Rights policy is to
communicate – both externally and internally -
H+H’s commitments to respect human rights, as
well as to provide guidance to our management
and employees on appropriate behaviour when it
comes to human rights issues.
In short this means, that H+H:
• Respects freedom of association and the right
to collective bargaining
• Supports the principle of equal opportunity and
does not accept harassment or discrimination
• Prioritises safety and adheres to all applicable
local laws related to ensuring proper working
conditions
• Does not accept human trafficking, the use of
child labour and the use of forced or compul-
sory labour
Many aspects of our business touch on human
rights, including working conditions, health and
safety, and data privacy. In addition to the Code of
Conduct and Human Rights policy, this is reflected
in many of our other policies, as outlined in our
overview of our sustainability-related policies and
systems in the Governance section.
Although the materiality assessment determined
that there are no material human rights impacts,
risks, or opportunities for H+H, we continuously
assess the risk of human rights violations. We
believe the inherent risk for human rights viola-
tions is low due to the nature of the business and
as we only conduct business in European coun-
tries with strong institutions. Most of the people
working in our plants are directly employed by
H+H, and consequently, we can ensure that our
staff are treated fairly and in accordance with
the above principles. Temporary staff (non-em-
ployees) are either employed directly by us or
via reputable agencies which adhere to relevant
employment legislation. To mitigate risks for viola-
tion of human rights throughout the value chain,
we have a Code of Conduct for Suppliers which
outlines our expectations for our suppliers and
contains provisions to address human trafficking,
forced and compulsory labour, the health & safety
of workers and precarious work.
A description of our Code of Conduct and Code of
Conduct for Suppliers can be found in the Govern-
ance section. Engagement with own workforce
on this and other employment related issues is
described in the next section under S1-2.
S1-4 Actions in 2024
Guided by the Diversity Policy, all managers are
expected to treat employees equally and not
discriminate in matters such as recruitment,
promotions, development opportunities or any
other personnel decisions. When recruiting we
source candidates of different genders when-
ever possible, and we seek to create a dynamic
organisation with a diverse mix of cultures,
backgrounds, skills, and ways of thinking. When
employing external recruitment consultants, they
are required to submit their diversity policies and
where possible we ensure that all recruitment
short lists have an appropriate gender balance.
If two candidates of different genders are equally
qualified for the position, the candidate of the
under-represented gender, if any, will be chosen.
This principle is applied across the Group. No
additional actions have been planned for 2025.
Due to the small size of the management levels,
turnover in these roles is also naturally low,
making it difficult to track effectiveness of actions.
S1-5 Targets
Group Management have decided to not set any
targets related to managing material negative
impacts, as we currently narrow our focus on
safety. There are currently no formal processes
in place to track the effectiveness of our policies
and actions, but the need for setting targets and
implementing processes is regularly assessed.
Board diversity targets
Our Group Diversity Policy is applied when evalu-
ating the composition of H+H International A/S'
management.
Pursuant to section 139c of the Danish Compa-
nies Act, we aim to have equal gender distribution
in our Board of Directors, as defined by the Danish
H+H International | Annual Report 2024 | 79In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Germany
Poland
United Kingdom
Other
Business Authority. This was reached at the
Annual General Meeting on 31 March 2022, and
the target is still met with the current composition
of 2 female members and 5 male. A new formal
gender target under the law will be set if the
gender composition changes, so that the gender
distribution no longer is considered equal as per
the legal definition.
The Board seeks to be diverse in the broadest
sense relevant. When deciding whether to
propose re-election or not of board members as
well as when searching for candidates to propose
as new board members, the decision is based on
filling out any competence gaps or strengthening
specific competences in the Board based on the
collective competences that the Board finds rele-
vant at the time considering H+H's strategy, chal-
lenges and opportunities. In addition to looking
at competences in the form of professional
experience and education, the Board also recog-
nises the benefits of diversity in terms of cultural
background, gender, age etc. Currently, the Board
of Directors’ diversity in respect of gender and age
could improve, hence if two candidates for a board
position are equally competent, the candidate
who is female and/or younger than the average
age of the board members will be preferred.
You can read more about board diversity in the '
Board Diversity' section under 'Corporate Govern-
ance'.
For gender diversity in the two management levels
in the parent company below the Board, we have
due to H+H International A/S’ relatively small
organisation, opted to use the legal exemption for
companies with less than 50 employees and not
have a gender diversity policy or related gender
diversity targets to increase the proportion of the
underrepresented gender, cf. the Danish Compa-
nies Act, Section 139(c)(7). The parent company
has less than 25 employees and a high degree of
retention, and thus only very few recruitments
over time, making it impossible to pursue gender
targets within a meaningful timeframe.
S1-6 Characteristics of H+H employees &
S1-7 Characteristics of non-employees
The gender ratio of our workforce remains stable
with an even split among workers in office envi-
ronments and low diversity among workers in our
plants and other non-office environments.
Due to the continued need for organisational
streamlining following the downturn in the
construction industry our turnover rate remains
high, however not as high as 2023. We are
however pleased to see that our voluntary turn-
over ratio remains stable at 12% compared to 13%
last year, reflecting the regional efforts to ensure
good work-life balance and working conditions.
Headcount by country
Germany 413
Poland 608
United Kingdom 228
Other 88
Total 1.337
Turnover Unit 2024 2023¹
Employee turnover ratio % 22% 40%
Employee turnover Headcount 280 605
1
Not covered by the Independent Auditor’s limited assurance report
Headcount by gender Office workers Non-office workers Total
Male 198 917 1,115
Female 171 51 222
Other 0 0 0
Not reported 0 0 0
Total 369 968 1,337
413
608
228
88
H+H International | Annual Report 2024 | 80In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Age distribution in the Group
The age distribution of our workforce is in line with other industries and society in general and is therefore
in line with our expectations.
Age distribution 2024 2023¹
Below 30 9% 7%
Between 30 and 50 51% 48%
Above 50 40% 45%
1
Not covered by the Independent Auditor’s limited assurance report
Female Male Other
Not
disclosed Total
Number of employees 222 1,115 0 0 1,337
Number of permanent employees 212 979 0 0 1,191
Number of temporary employees 10 136 0 0 146
Number of non-guaranteed hours employees 0 2 0 0 2
Number of non-employees 2 15 0 0 17
CWE region HQ Poland
United
Kingdom Total
Number of employees 483 18 608 228 1,337
Number of permanent employees 473 18 473 227 1,191
Number of temporary employees 10 0 135 1 146
Number of non-guaranteed hours employees 2 0 0 0 2
Number of non-employees 16 1 0 0 17
S1-9 Diversity metrics
The underrepresented gender in top management
2024 2023¹
Gender diversity, top management (entire H+H Group) 0% 0%
Females / total HC 0/6 0/7
S1-16 Remuneration metrics
During 2024 the gender pay gap, defined as the
difference of average pay levels between male and
female employees, decreased from -6% to -17%.
In general, we believe that it is difficult to assess
the development in the gender pay gap due to the
mix of job functions and job levels. However a big
contributor, is the composition of our workforce,
where majority are non-office workers who are
traditionally male and where salaries are lower.
Additionally, as we operate in countries with mate-
rially different salary levels, comparison across
regions can be difficult.
However, we are working on getting better trans-
parency of the differences in salary levels. The
first step is the implemention of a Group job
architecture as preparation for the implementa-
tion of the EU directive on Pay Transparency. This
is planned for 2025.
The CEO pay ratio, defined as the ratio of the
highest-paid individual to the median annual total
remuneration for all employees has increased
from 2023 to 2024. We attribute this to the vari-
able components of the CEO pay, as described in
the Remuneration Report.
2024 2023¹
Gender pay gap (average) -17% -6%
CEO pay ratio 34 29
H+H International | Annual Report 2024 | 81In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Training & skills
development and
working conditions
ESRS 2 SBM-3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
H+H seeks to provide a safe and attractive work
environment for our employees during all stages
of their career. We want to attract and retain qual-
ified and motivated employees who can support
our business ambitions. To enable this, we offer
our people training and development to enhance
their skills and develop their careers while also
providing opportunities to shape their work when-
ever possible.
Please refer to the section 'HOME' under 'Stra-
tegic Focus Areas' for the link to our business
strategy.
The following material impacts related to training
and skills development and working conditions
were identified in the materiality assessment:
Training and skills development
Lack of proper training and skills development
can impact the employee’s ability to work and
enhance the risk for compliance violations and
business developments. By providing attractive
training and development opportunities that help
our employees realise their potential and ambi-
tions, we have a positive impact on our workforce.
This impact is systemic and occurs in our own
operations over the short, medium, and long-term
periods for both employees and non-employees,
including self-employed people and people
provided by third-parties.
Work-life balance, working
conditions and social dialogue
As employers we naturally have an impact on
work-life balance and working conditions for
all employees as well as non-employees. This
includes the possibility to take leave or work
flexibly and providing space and opportunity for
social dialogue with employees. The impacts
occur over both the short, medium and long term
and are systemic as they covers all sites in all
regions.
No material risks or opportunities were identified.
Impacts, risks, and opportunities
management
Managing our impacts is key to ensuring that
we have the workforce we need to achieve our
business ambitions. Performance, competence,
and talent management is handled locally where
managers are encouraged to keep an open
dialogue with employees and to continually assess
the need for training.
S1-1 Policies
H+H does not have a policy that specifically
addresses training and skills development. In
addition to required upskilling or renewal of certif-
icates, we believe that performance, talent, and
competence management should be managed
in regular dialogues between managers and
employees. For this reason there is currently no
plan to introduce a Group policy.
Our group principles relating to working condi-
tions are described in our Human Rights Policy.
On a practical level these are mainly governed
by regional policies and employee handbooks,
including rules on leave and flexible working. The
duration of leave differs from region to region and
is in line with local legislation. The opportunity
to work flexibly also varies from region to region
and depends on the nature of the job. Employees
are encouraged to provide feedback and voice
concerns to ensure proper work-life balance and
whenever possible work processes are designed
and improved in collaboration with the relevant
internal stakeholders.
S1-2 Processess for engagement
In order to create an attractive working environ-
ment, we regularly engage in dialogue with our
employees to understand their perspectives
and needs. This includes employee surveys for
selected employees, manager 1:1s, as well as local
Q&A sessions with management. The Group HR
Director has overall operational responsibility for
ensuring that engagement on actual and potential
impacts happens and that actions are initiated.
All employees can raise their concerns directly to
a manager or through our whistleblower system.
The whistleblower system is described in the
Governance section.
S1-3 Processes for remediation
We aim to have a culture where all employees
feel comfortable about speaking up if they have
concerns or issues. There is currently no formal-
ised process in place where we evaluate this.
Majority of our whistleblower reports are made
either to HR or directly to a manager and we view
this as a sign that employees trust the structures
and processes we have in place. Information on the
protection of whistleblowers and the Whistleblower
Policy can be found in the Governance Section.
S1-4 Actions
A performance management framework has been
launched for a pilot group of employees, with the
intention to roll out the program further during the
coming years in all regions. Through performance
management we want to support achievement of
the organisation’s goals while also fostering indi-
vidual development and performance. As launch
of the framework is still in early stages, tracking of
effectiveness is also still in the planning phase. No
other specific actions have been taken in 2024 in
relation to managing impacts related to working
conditions and training & skills development.
H+H International | Annual Report 2024 | 82In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Feedback and perspectives of our own workforce
are taken into account when planning actions.
S1-5 Targets
To currently focus our resources on other priori-
ties, Group Management have decided to not set
any targets related to managing material negative
impacts. There are no processes at the moment in
place to track the effectiveness of our policies and
actions, but the need for targets and processes is
regularly assessed.
S1-8 Social dialogue
It varies from country to country and depending
on local legislation, whether or not employees
are represented by a local organisation such as a
workers’ council or work environment organisa-
tion. As we have not been met by a demand from
our employees, there is currently no agreement
between H+H and a European Works Council
(EWC), a Societas Europaea (SE) Works Council,
or a Societas Cooperativa Europaea (SCE) Works
Council.
Majority of employees' working terms and
employment conditions are decided directly
between the employee and the company and
generally not by collective bargaining agreements.
S1-13 Training and skills
development metrics
We report on the average number of training
hours within H&S and compliance training as
this is where we have group wide standardised
processes. For personal training and skills devel-
opment, this is managed locally within each
region.
S1-15 Work-life balance metrics
All employees are entitled to take family-related
leave, and in total 3% took leave. No person who
requested to take leave was denied the opportu-
nity.
S1-17 Incidents, complaints and
severe human rights impacts
During 2024 there were no work-related inci-
dents of discrimination reported to HR or via the
whistleblower system on the grounds of gender,
racial or ethnic origin, nationality, religion or
belief, disability, age, sexual orientation, or other
relevant forms of discrimination involving internal
and/or external stakeholders across operations
in the reporting period. This includes incidents of
harassment as a specific form of discrimination.
No cases of human rights incidents (e.g., forced
labour, human trafficking, or child labour) were
identified during 2024.
Social dialogue
Coverage Rate
Workplace representation (EEA only)
(for countries with >50 empl. representing >10% total empl)
0-19% Poland
20-39%
40-59%
60-79% Germany
80-100%
Total Male Female
Employees who participated in regular performance and career development reviews 51% 52% 50%
Average number of training hours 7 6 11
Total Male Female
Employees entitled to take family-related leave 100% 100% 100%
Employees that took family-related leave 3% 2% 7%
H+H International | Annual Report 2024 | 83In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Controls
Data regarding number of employees and gender
are generated from our HR and Payroll systems.
Data regarding fatalities and accidents are
reported through the operations management
system that follows normal financial processes to
ensure consistency and is validated against the
external financial reporting. The data is verified
through internal controls, analysis, benchmarks,
and monthly business meetings. Unless stated no
numbers or metrics have been validated by any
external body other than the assurance provider.
Definitions
• Own workforce is defined as employees as
well as non-employees, excluding contractors.
Unless otherwise described, both employees
and non-employees are subject to the material
impacts related to Own Workforce
• Headcount is defined as all employees, both
fulltime and part-time, as well as active and
non-active. The numbers reported for both
employees and non-employees are as of 31
December 2024
• FTEs (fulltime equivalents) are defined as all
employees and non-employees, excluding those
on leave
• Employees are defined as those being directly
on our payroll. Non-employees include both
self-employed people and people provided by
third parties
• Group Management includes the Executive Board
and senior executives at H+H International A/S.
• Gender diversity, top management is defined as
Group Management and the regional Managing
Directors
• Gender pay gap is calculated as difference of
average pay levels between female and male
employees, expressed as percentage of the
average pay level of male employees. Basis for
average pay is the hourly wage of all female and
male employees, converted to DKK using the
average exchange rates for the year
• CEO pay ratio is calculated as the CEO compen-
sation, as reported in the Remuneration
Report, divided by the median salary of all other
employees
• Employee turnover ratio is calculated as total
leavers divided by average headcount for the
year. Only people on our payroll are included
• The number of employees who took leave
is calculated as the total number for leaves
commenced between 1 January 2024 and 31
December 2024. Employees are only counted
once, even if they have had multiple leave
periods during the year
• Employee representation in relation to Social
Dialogue is defined as representation by works
council, work environment organisation or
employee committees
• Training is defined as H&S related training and
compliance training. When calculating the
average number of hours per gender, we have
used the gender split for each country on the
completion rates of the compliance training
offered
• A fatality is a work-related injury that results
in death. The number reported includes both
employees, non-employees, contractors, and
visitors
• Lost-Time Incident Frequency (LTIF) meas-
ures the frequency of Lost-Time Incidents and
fatality incidents per million hours divided by
total hours worked. Working hours is based on
actual time registrations as well as estimates.
The number reported includes own workforce
• Total Recordable Incident Rate (TRIR) meas-
ures the frequency of all work-related injuries
and fatality incidents per million hours divided
by total hours worked
• Near Miss Frequency Rate for employees
(NMFR) measures number of Near Miss
Reports per million hours divided by total hours
worked following the OSHA guidelines
• Sickness absence is calculated as total sick
days divided by average number of FTEs during
the year
• Short-term absence is defined as sick leave
where H+H provides the primary compensation
to the employee. Once the primary compensa-
tion transitions to be provided by a public body,
the absence is considered long-term
Social accounting policy
H+H International | Annual Report 2024 | 84In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Governance
information
List of material disclosure requirements Page reference
G1 - Business Conduct
GOV-1 The role of the administrative, management and supervisory bodies Pages 36-42, 85
G1-1 Business conduct policies and corporate culture Page 86
G1-3 Prevention and detection of corruption and bribery Pages 86-87
G1-4 Incidents of corruption or bribery Page 87
H+H is committed to acting professionally, responsibly, and with
integrity in all our business dealings and relationships.
GOV-1 The role of the administrative,
management and supervisory bodies
The Board of Directors is responsible for the
overall strategic direction and management of the
Group, and that an adequate control framework
exists to ensure proper business conduct. The
Executive Board is responsible for the day-to-day
management including implementation of a
policy framework and related controls to support
a responsible corporate culture. In our Board of
Directors and Executive Board we have members
with management experience within compliance
and governance work, auditing and controlling.
Presentations of the individual members of the
Board of Directors and Executive Board can be
found in the Corporate Governance section.
Impacts, risks and opportunities
As part of the construction industry we face risks
associated with bribery, corruption and anti-com-
petitive practices, due to the large number of
contractors, suppliers and other entities in the
value chain and the competitive bidding process
to secure private - and to a lesser extent - public
contracts.
H+H mainly sells through builders’ merchants
(wholesalers) and as a building materials producer
rather than a construction company, we have
limited direct involvement in negotiations and bid
proposals. In addition, we only operate in Europe
within countries that have low risks of bribery and
corruption, ranking between 1 (Denmark) and 53
(Poland) out of 180 countries in the Transparency
International Corruption Perceptions Index 2024.
We therefore consider the overall risk of corrupt
behaviour to be relatively low.
In the materiality assessment we identified the
following impacts related to business conduct:
Corporate culture
We actively want to foster a culture of integrity
and transparency. Setting the tone at the top is
important and by leading by example we impact
the way our employees experience and contribute
to our corporate culture. This impact occurs in our
own operations over the short, medium and long
term.
Unethical business practices
The main risk of corrupt behaviour for H+H
concerns inappropriate types or levels of enter-
tainment, gifts or payments (kick-backs) provided
to our employees from potential or actual
suppliers or provided by our employees to poten-
tial or actual customers with the intent of gaining
special consideration or a business advantage.
The impact occurs in our own operations over the
short, medium and long term.
Whistleblower protection
It is important for us to foster an open culture
where employees, business partners and other
stakeholders can raise important matters.
In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International | Annual Report 2024 | 85
Protecting whistleblowers is integral to ensure fair
investigations and avoid retaliation. The impact
occurs in our own operations over the short,
medium and long term.
Impacts, risks and opportunities
management
We manage these impacts by continually working
to strengthen our compliance culture. This is
done through our policies, whistleblower system,
training and awareness, by conducting audits, and
through leadership communication and behaviour
that sets the tone from the top on conducting
business with integrity.
G1-1 Business conduct policies
and corporate culture
Code of Conduct and Code of
Conduct for Suppliers
H+H’s Code of Conduct is the foundation of our
compliance programme and sets the tone for
our business integrity and ethical principles. It
is complemented by the Code of Conduct for
Suppliers which outlines our expectations to
suppliers to conduct business in a legal, sustain-
able, ethical and socially responsible manner.
The Code of Conduct and Code of Conduct for
Suppliers include our principles related to e.g.
environment and climate, health and safety, diver-
sity, non-discrimination, personal data protection,
conflicts of interest, fair competition, anti-corrup-
tion, responsible tax and data ethics. The Code
of Conduct for Suppliers is provided to all major
suppliers in each region with a request to confirm
compliance
The Board of Directors approves the Code of
Conduct and the Executive Board is responsible
for the implementation of the policy principles.
The COO is responsible for the Code of Conduct
for Suppliers and its implementation. Employees
can access these policies in H+H’s policy manage-
ment system. Employees without direct access
are provided with either paper copies or access
via shared computers or notice boards. Every
employee at H+H is required to read and adhere to
the H+H Code of Conduct. Both of these policies
are reviewed regularly and updated in line with
relevant legislation, and they are available at all
H+H websites.
The Board of Directors is ultimately responsible
for oversight of H+H’s corporate culture and
business conduct. The Executive Board and other
managers in the Group are responsible for imple-
mentation of the policy principles and leading by
example to drive a culture of business integrity
and discuss openly how to follow the principles in
the Code of Conduct and the underlying specific
policies. To support our commitment to respon-
sible business conduct, the regional Managing
Directors are required to sign a declaration every
quarter stating that to the best of their knowledge,
all H+H entities in their region are conducting
business in a way that is compliant with all appli-
cable H+H policies.
Whistleblower policy & system
We encourage all reporting of any suspected
wrongdoing. This can be done to a relevant H+H
manager, to HR or via our public online whistle-
blower system where reports can be done by
name or anonymously. The system is accessible
in all our languages and can be accessed both
from H+H’s intranet for employees and from
all H+H websites. The system is provided by
an independent third-party provider of whistle-
blower solutions and reporters have the option
of choosing if they want to report to regional HR,
Group HR or Group Legal.
All good faith reports of suspected material
violations of the Code of Conduct or any under-
lying H+H policies and violations of law within the
defined scopes are investigated. We take great
care to ensure the confidentiality of the reporter’s
identity and to avoid any potential conflicts of
interest when establishing the investigation team
and the decision maker. Independent, external
legal counsel or other relevant experts are also
used for investigations when relevant. Good
faith whistleblowers of matters within scope are
protected from any kind of retaliation or discrimi-
natory or disciplinary action as a result of submit-
ting a report. We assess the risk of retaliation as
part of the investigation procedure and encourage
reporters to report any retaliation, they may expe-
rience. Outcome of investigations are reported to
the Audit Committee.
H+H’s Whistleblower Policy is available in the
whistleblower system and provides information on
how to report suspected misconduct, how reports
are handled and what is deemed inside and
outside scope. The Board of Directors approves
the Whistleblower Policy while the Executive
Board is responsible for the implementation. To
create awareness and educate employees on what
can be reported and how, all employees are asked
to read and confirm reading of the policy. Training
in the whistleblower policy and system was
provided to part of the employees during 2024.
Tax Policy
H+H has adopted a group Tax Policy. The policy
is the foundation for the common tax approach
for the H+H Group. Our ambition is to always
apply best practices and act in accordance with
applicable legislation on tax computation and tax
reporting to ensure that we pay the right amount
of tax at the right time in the countries where we
operate. In close collaboration with tax advisors,
we monitor updates and changes to tax legislation
to assess the impact on a Group and country level.
G1-3 Prevention and detection
of corruption and bribery
H+H has zero tolerance for corruption and
bribery, and we condemn corrupt behaviour and
business practices. This is underpinned by our
H+H International | Annual Report 2024 | 86In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
ESG & sustainability-related policies and systems
Policy
Area(s) of
application Description
Code of Conduct Overarching Our Code of Conduct describes the core values and principles,
employees are expected to follow.
Read more on page 86
Code of Conduct
for suppliers
Overarching The policy outlines our expectations to suppliers to conduct busi-
ness in an ethical, legal, and socially responsible manner.
Read more on page 86
ESG Policy Overarching The policy outlines our environmental, social, and governmental
commitments.
Read more on page 65
Human Rights
Policy
Social The policy outlines our commitments to respect human rights. Read more on page 79
Diversity Policy
Social The core objective of the Group Diversity Policy is to foster an
inclusive and open working climate where diversity is embraced
and promoted. We encourage and support diversity at all levels and
express our lack of tolerance towards any form of discrimination.
Read more on page 78
Health & Safety
Policy
Social The policy describes our overarching principles for health and
safety in H+H.
Read more on page 77
Anti-corruption
Policy
Governance The policy provides principles and information related to bribery,
facilitation payments, donations, and entertainment and gifts.
Read more on pages 86-87
Data Ethics Policy
Governance The purpose of this policy is to set out the data ethical principles for
H+H’s processing of data so that the processing is not only legal,
but also ethical.
Read more on page 39
Tax Policy
Governance The policy describes our internal governance and management of
all matters related to tax.
Read more on page 86
Whistleblower
Policy
Governance The policy includes information on how to report suspected
misconduct, how reports are handled and what is deemed inside
and outside scope.
Read more on page 86
Anti-corruption Policy which provides principles
and information related to bribery, facilitation
payments, donations, and entertainment and
gifts, as well as the potential consequences for
violations. The Executive Board is responsible
for implementation of the Anti-corruption Policy
which is reviewed regularly and updated in line
with relevant legislation. The policy is available in
all our company languages and is communicated
to all office employees via our policy management
system with a request to confirm that they have
read the policy.
The policy includes relevant sector specific
practical examples to train and raise awareness
of business situations that may involve bribery
or corruption and the behaviour expected of H+H
employees in such situations. Currently there is
no Group definition of which functions are deemed
to be at risk. No training in anti-corruption and
bribery was provided to any H+H employees in
2024, including Group Management.
Internal controls are set up to manage any poten-
tial corruption risks present on the sales and
procurement side. Escalation procedures are
in place and communicated within the Group.
Investigations follow the process described in the
Whistleblower section.
Metrics and targets
We believe that having a diverse Board of Direc-
tors is linked to better governance of our busi-
ness. Target setting related to this is described in
the Corporate Governance section and the Social
section. Group Management believes that for now
this target is sufficient and has decided not to set
any other targets in relation to Governance.
G1-4 Incidents of corruption and bribery
During 2024, three whistleblower reports were
found to be within scope, however none regarded
corruption and bribery. H+H did not receive any
injunction, ruling, conviction, fine or similar for
violation of anti-corruption or anti-bribery laws.
H+H International | Annual Report 2024 | 87In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
89 Consolidated financial statements
93 Notes
131 Statements
139 Contact information
Financial statements
H+H International | Annual Report 2024 | 88In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Income statement Statement of comprehensive income
Note (DKK million) 2024 2023
3,11 Revenue 2,747 2,672
4,11,17 Cost of goods sold (2,168) (2,108)
Gross profit before special items 579 564
4,11 Sales costs (122) (149)
4,11 Administrative costs (209) (197)
5 Other operating income and costs, net 2 26
EBITDA before special items 250 244
6,11 Depreciation and amortisation (187) (187)
EBIT before special items 63 57
7 Special items, net (22) (287)
EBIT 41 (230)
8 Financial income 39 24
9 Financial expenses (109) (77)
Result before tax (29) (283)
10 Tax (21) 37
Result for the year (50) (246)
Result for the year attributable to:
H+H International A/S' shareholders (53) (248)
Non-controlling interest 3 2
Result for the year (50) (246)
12 Earnings per share (EPS-Basic) (DKK) (3,2) (15,0)
12 Diluted earnings per share (EPS-D) (DKK) (3,2) (15,0)
Note (DKK million) 2024 2023
Result for the year (50) (246)
Other comprehensive income:
Items that will not be reclassified subsequently to the income statement:
20 Actuarial losses and gains 13 (68)
Tax on actuarial losses and gains (5) 15
8 (53)
Items that may be reclassified subsequently to the income statement:
26 Fair value adjustments of derivative financial instruments (13) (20)
Tax of fair value adjustment 1 3
26 Gain/(loss) on derivative financial instruments transferred to the income statement 9 10
Foreign exchange adjustments, foreign entities 20 63
17 56
Other comprehensive income after tax 25 3
Total comprehensive income for the year (25) (243)
H+H International | Annual Report 2024 | 89In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Balance sheet at 31 December
Note (DKK million) 2024 2023
Goodwill 422 422
Customer relations 143 179
Other intangible assets 77 61
13 Intangible assets 642 662
Land and buildings 707 754
Plant and machinery 689 610
Other equipment, fixtures and fittings 80 77
Assets under construction 240 332
14 Property, plant and equipment 1,716 1,773
15 Deferred tax assets 54 31
Investments in associated companies 2 2
Other non-current assets 56 33
Total non-current assets 2,414 2,468
17 Inventories 435 657
18 Trade receivables 113 102
18 Other receivables 39 74
Prepayments 10 14
Cash 462 139
Current assets 1,059 986
Total assets 3,473 3,454
Note (DKK million) 2024 2023
19 Share capital 165 165
Other reserves (82) (99)
Retained earnings 1,483 1,526
Equity attributable to H+H International A/S's shareholders 1,566 1,592
Equity attributable to non-controlling interests 84 86
Equity 1,650 1,678
20 Pension obligations 21 59
21 Provisions 43 31
15 Deferred tax liabilities 36 54
26 Lease liabilities 73 95
25 Deferred payments, acquisition of subsidiary 93 99
22 Credit institutions 1,046 907
Non-current liabilities 1,312 1,245
22 Credit institutions - -
Trade payables 272 278
26 Lease liabilities 25 24
Income tax 1 5
25 Deferred payment, acquisition of subsidiary 6 7
21 Provisions 26 7
Other payables 181 210
Current liabilities 511 531
Total liabilities 1,823 1,776
Total equity and liabilities 3,473 3,454
Assets Equity and liabilities
H+H International | Annual Report 2024 | 90In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Cash flow statement
Note (DKK million) 2024 2023
Operating profit (EBIT) 41 (230)
6 Depreciation, amortisation and impairment 187 288
Change in inventories 225 (117)
Change in receivables 32 (12)
Change in trade payables and other payables (50) 23
Other non-cash adjustments* (156) (62)
Operating activitites before financial items and tax 279 (110)
8, 9 Financial items, net (70) (53)
Income tax paid (64) (46)
Operating activities 145 (209)
Sale of property, plant and equipment 205 35
25 Acquisition of enterprises and related deferred payments (7) (7)
13, 14 Acquisition of property, plant and equipment and intangible assets (124) (165)
Investing activities 74 (137)
Free cash flow 219 (346)
22 Proceeds in borrowings - 245
Bank overdraft and other debt 140 (80)
Payment of lease liabilities (32) (32)
Dividend to non-controlling interest (5) -
Purchase of treasury shares - (2)
Financing activities 103 131
Cash flow for the year 322 (215)
Cash at 1 January 139 358
Foreign exchange adjustments of cash 1 (4)
Cash at 31 December 462 139
* Other non-cash adjustments relates mainly to the gain on sale of Warsaw site.
Accounting policies
The cash flow statement shows the cash flows for the year, broken down by operating, investing and financing activities, and the year’s change in
cash and cash equivalents as well as the cash and cash equivalents at the beginning and end of the year.
The cash flow effect of acquisitions and disposals of entities is shown separately under cash flows from investing activities. Cash flows from
acquisitions of entities are recognised in the cash flow statement from the date of payment, and cash flows from disposals of entities are recog-
nised up to the date of disposal.
Cash flows in currencies other than the functional currency are translated at average exchange rates. Cash flows from operating activities are
determined as operating profit adjusted for depreciation, amortisation and impairment losses, non-cash operating items, change in working
capital, pension contributions, interest received and paid, and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities, acquisitions and
disposals of intangible assets, property, plant and equipment, and other non-current assets.
Cash flows from financing activities comprise changes in the size or composition of the share capital and associated expenses as well as the
raising of loans, repayment of interest-bearing debt, purchase and sale of treasury shares, and payment of dividends as well as dividend received
from subsidiaries. Payment of lease liabilities is included under financing activities and the related interest is included as a financial item under
operating activities.
Cash and cash equivalents comprise cash and securities with a maturity of less than three months at the time of acquisition that are readily
convertible to cash and are subject to an insignificant risk of changes in value. The global cash pool arrangement is presented gross. Positive
cash balances are recognised as cash in assets and overdrafts are shown within borrowings in liabilities in the balance sheet.
H+H International | Annual Report 2024 | 91In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Statement of changes in equity
(DKK million)
Share
capital
Hedging
reserve
Translation
reserve
Retained
earnings
H+H
shareholders
share
Non-
controlling
interest' share Total
Equity at 1 January 2024 165 (7) (92) 1,526 1,592 86 1,678
Result for the year - - - (53) (53) 3 (50)
Other comprehensive income:
Foreign exchange adjustments, foreign entities - - 20 - 20 - 20
Actuarial gains/losses on pension plans - - - 13 13 - 13
Adjustments of derivative financial instruments - (4) - - (4) - (4)
Tax on other comprehensive income - 1 - (5) (4) - (4)
Net gains recognised directly in equity - (3) 20 8 25 - 25
Total comprehensive income - (3) 20 (45) (28) 3 (25)
Share-based payment - - 2 2 - 2
Dividend to non-controlling interests - - - - - (5) (5)
Total changes in equity - (3) 20 (43) (26) (2) (28)
Equity at 31 December 2024 165 (10) (72) 1,483 1,566 84 1,650
Equity at 1 January 2023 175 (155) 1,822 1,842 96 1,938
Result for the year - - - (248) (248) 2 (246)
Other comprehensive income: -
Foreign exchange adjustments, foreign entities - - 63 - 63 - 63
Actuarial gains/losses on pension plans - - - (68) (68) - (68)
Fair value adjustment of derivative financial instruments - (10) - - (10) - (10)
Tax on other comprehensive income - 3 - 15 18 - 18
Net gains recognised directly in equity - (7) 63 (53) 3 - 3
Total comprehensive income - (7) 63 (301) (245) 2 (243)
Acquisition of treasury shares - - (2) (2) - (2)
Share-based payment - - (3) (3) - (3)
Share capital decrease, note 19 (10) - 10 - - -
Dividend to non-controlling interests - - - - (12) (12)
Total changes in equity (10) (7) 63 (296) (250) (10) (260)
Equity at 31 December 2023 165 (7) (92) 1,526 1,592 86 1,678
H+H International | Annual Report 2024 | 92In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
Notes - Financial statements
1 Material accounting policy information 94
2 Significant estimates and judgements 95
Notes - Income statement
3 Revenue and segment information 95
4 Staff costs 96
5 Other operating income and costs before special items 98
6 Depreciation, amortization and write down before special item 98
7 Special items, net 98
8 Financial income 99
9 Financial expenses 99
10 Tax 100
11 Income statement classified by function 101
12 Earnings per share (EPS) 102
Notes - Balance sheet
13 Intangible assets 102
14 Property, plant and equipment 105
15 Deferred tax 107
16 Non-controlling interest 108
17 Cost of goods sold and inventories 108
18 Trade and other receivables 109
19 Share capital and treasury shares 110
20 Pension obligations 111
21 Provisions 114
22 Credit institutions 115
Notes - Supplementary information
23 Contingent liabilities 115
24 Auditors’ remuneration 116
25 Business Combinations 116
26 Financial instruments and financial risks 116
27 Related parties 120
28 Events after the balance sheet date 120
H+H International | Annual Report 2024 | 93In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
1 Material accounting policy information
The annual report for the period 1 January - 31 December 2024
comprises both the consolidated financial statements of H+H In-
ternational A/S and its subsidiaries (the H+H Group) and separate
financial statements for the parent company.
H+H International A/S is a public limited company registered in
Denmark. The annual report of H+H International A/S for 2024
has been prepared in accordance with IFRS accounting standards
as adopted by the EU and additional requirements of the Danish
Financial Statements Act.
The Board of Directors and Executive Board discussed and
approved the annual report of H+H International A/S for 2024 on
4 March 2025. The annual report for 2024 will be submitted to the
shareholders of H+H International A/S for adoption at the annual
general meeting on 8 April 2025.
Basis of preparation
The annual report is presented in DKK, which is the parent compa-
ny’s functional currency, rounded to the nearest DKK 1 million. The
annual report has been prepared using the historical cost principle.
The accounting policies are unchanged compared to last year.
Accounting policies have been applied consistently throughout
the financial year and for the comparative figures, if not mentioned
otherwise.
The accounting policies applied to the consolidated financial
statements as a whole are described below and along with the notes
to which they relate. The descriptions of accounting policies in the
notes form part of the overall description of accounting policies.
Adoption of new, revised and amended IFRSs effective 1
January 2024
H+H International A/S has adopted all relevant new or revised and
amended IFRS accounting standards and interpretations (IFRIC)
issued by IASB and endorsed by the EU effective for the financial
year 2024. It is assessed that they have not had a material impact
on the consolidated financial statement.
New, revised and amended IFRS Standards
It is assessed that new, revised or amended IFRSs and Interpreta-
tions will not have a material impact on the consolidated financial
statements.
New, revised and amended IFRSs and interpretations not yet
adopted by EU
It is assessed that new, revised or amended IFRSs and interpre-
tations that have been issued but not yet adopted by EU as at 31
December 2024 will not have a material impact on the consolidated
financial statements.
Application of materiality
In the preparation of the annual report, H+H Group aims to focus on
information which is considered to be material and relevant to the
users of the annual report. The consolidated financial statements
are a result of aggregating large numbers of transactions into
classes of similar items, according to their nature or function, in the
consolidated financial statements. If a line item is not individually
material, it is aggregated with other items of a similar nature in the
consolidated financial statements or in the notes. The provisions
in IFRS contain extensive disclosure requirements. The specific
disclosures required by IFRS are provided in the annual report
unless the information is considered immaterial to the users of the
annual report.
Description of accounting policies
Consolidated financial statements
The consolidated financial statements include the parent company
H+H International A/S and subsidiaries controlled by H+H Interna-
tional A/S. Control exists when H+H International A/S holds or has
the ability to exercise, directly or indirectly, more than 50% of the
voting rights or otherwise has control of the subsidiary in question
and has the right to variable returns from the entity.
The consolidated financial statements have been prepared by
aggregation of the parent company’s and the individual subsidiaries’
financial statements, applying the H+H Group’s accounting policies.
Intra-group income and expenses, shareholdings, balances and
dividends as well as realised and unrealised gains arising from
intragroup transactions are eliminated on consolidation.
Equity investments in subsidiaries are offset against the proportion-
ate share of the fair value of the subsidiaries’ identifiable net assets
and recognised contingent liabilities at the date of acquisition.
Accounting items of subsidiaries are fully recognised in the consoli-
dated financial statements.
Foreign currency translation
For each entity included in the consolidated financial statements, a
functional currency has been determined. The functional currency
of an entity is the currency of the primary economic environment
in which the entity operates. Transactions in currencies other than
the functional currency are accounted for as transactions in foreign
currencies.
On initial recognition, transactions denominated in foreign curren-
cies are translated into the functional currency at the exchange
rates at the transaction date. Foreign exchange differences arising
between the exchange rates at the transaction date and at the date
of payment are recognised in the income statement as financial
income or financial expenses.
Receivables, payables and other monetary items denominated in
foreign currencies are translated into the functional currency at the
exchange rates at the balance sheet date. The difference between
the exchange rate at the balance sheet date and the exchange
rate at the date on which the receivable or payable arose or the
exchange rate used in the last annual report is recognised in the
income statement as financial income or financial expenses.
On recognition in the consolidated financial statements of foreign
entities with a functional currency other than DKK, income state-
ments are translated at the exchange rates at the transaction date
and balance sheet items are translated at the exchange rates at the
balance sheet date. An average exchange rate for each month is
used as the exchange rate at the transaction date to the extent that
this does not give a significantly different view. Foreign exchange
differences arising on translation of the opening equity of foreign
entities at the exchange rates at the balance sheet date, and on
translation of income statements from the exchange rates at the
transaction date to the exchange rates at the balance sheet date,
are recognised as other comprehensive income.
Foreign exchange adjustments of balances considered part of the
overall net investment in entities with a functional currency other
than DKK are recognised in the consolidated financial statements
as other comprehensive income. Correspondingly, foreign exchange
gains and losses on that part of loans and derivative financial in-
struments entered into to hedge the net investment in such entities
which effectively hedges against corresponding exchange gains/
losses on the net investment in the entity are recognised as other
comprehensive income.
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Notes to the consolidated financial statements
2 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 due to their nature, are uncertain and unpredictable. The estimates and assumptions
may be 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 differing 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.
Significant accounting estimates and judgements made in connection with the financial reporting are set out in the notes listed below. Reference
is made to the specific notes for further information on the key accounting estimates and judgements as well as the assumptions applied.
Significant accounting Nature of Impact of estimates Note estimate and judgementaccounting impactand judgements3 Segment information Aggregation of similar segments Judgement **13 Impairment testing of intangible assets Key assumptions in impairment test Estimate ***15 Deferred tax Recovery of deferred tax assets Estimate *20 Defined benefit pension plans Key actuarial assumptions Estimate **
* Low
** Medium
*** High
3 Revenue and segment information
Revenue
The revenue streams contain of contracts for sale of goods and related transport services. Change of control for contracts for goods are satisfied
upon shipment whereby the performance obligation is met instantly. Revenue relating to transport services is recognised upon delivery of the
goods to an agreed location whereby the performance obligation is met.
The transaction price is the amount to which H+H expects to be entitled in exchange for the transfer of goods and transport services. The trans-
action price for delivery of goods and transport services are an integrated part of the contracts and the standalone selling prices are directly
observable. Accounting estimates are made for variable considerations which consist of customer rebates and bonuses. These are allocated to
the transaction price based on “The most likely amount”-method.
Payment terms mainly comprise of 30 days end of month, hence no significant financing component. Defect products and return pallets can be
redelivered and provisions has been recognised accordingly. For further description, please refer to note 21 “Provisions”.
Key customers
One customer in the UK represented approx. 15% of the H+H Group’s total revenue in 2024 (2023: 17%). In 2023, one customer in Germany
represented 11% of the total revenue. The following geographical areas in the Group represent more than 10% of revenue or non-current assets.
(DKK million) 2024 2023Non- Non- current current Revenueassets RevenueassetsCentral Western Europe 1,030 1,676 1,256 1,729UK 871 336 763 299Poland 846 402 653 4402,747 2,414 2,672 2,468
When presenting information on geographical areas, information on revenue is based countries except for “Central Western Europe” which
comprise of Germany, Switzerland, Denmark, Sweden, Czech Republic, Holland and Belgium. For Germany, revenue in 2024 for amounts to DKK
645 million (2023: DKK 822 million) and non-current assets amount to DKK 1,268 million (2023: DKK 1,305 million). All revenue relates to sales
of goods and transport services.
Revenue in Denmark was DKK 151 million in 2024 (2023: DKK 193 million). Non-current assets in Denmark at year-end 2024 amounted to DKK
66 million (2023: DKK 54 million).
AAC and CSU revenue amounted to DKK 2,020 million and DKK 727 milllion in 2024, compared to DKK 1,880 million and DKK 792 million in
2023. AAC products are sold across all segments, while CSU products are sold in CWE and Poland.
H+H International | Annual Report 2024 | 95In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
3 Segment information – continued
Accounting policies
Revenue from contracts for goods recognised in the income statement when the customer obtains control. Revenue relating to transport servic-
es is recognised upon delivery of the goods to an agreed location. Revenue is recognised if the income can be measured reliably and is expected
to be received. Revenue is measured net of VAT and duties collected on behalf of third parties. All types of discounts and rebates granted are
recognised in revenue.
The reporting of operating segments is in accordance with the internal reporting to the Executive Management which constitute H+H’s chief
operating decision maker. H+H has identified three operating segments Central Western Europe, UK and Poland which has been aggregated into
one reporting segment. The operating segments share similar economic characteristics in regard to gross profit margin, are similar in the nature
of products, production processes and customer base as well as in distribution methods.
Executive Management is responsible for decisions about overall resource allocation and performance assessment. Business decision on
resource allocation and performance evaluation for each of the operating segments are made on basis of EBIT before special items.
Significant accounting Judgement
Aggregation of segments with exhibit similar economic characteristics
When assessing segment information, Management has provided significant judgements, especially related to the five aggregation criterias
re. IFRS 8.12, i.e. nature of the products and services, nature of the production processes, type or class of customer, method used to distribute
products and nature of the regulatory environment. Based on a thorough analysis, it is concluded that aggregation of the identified three operat-
ing segments Central Western Europe, UK and Poland into one reporting segment can be made as each of the operating segments share similar
economic characteristics measured on a long-term gross profit margin basis, as well as they share similar fundamental characteristics re. the
five aforementioned specific aggregation criteria’s.
4 Staff costs
(DKK million) 2024 2023Total Remuneration to Key Management Personnel – Executive Board and non-registred members of Executive Management*Salary 10.9 12.1Bonus 4.3 3.7Share-based payment** 2.9 0.5Pension 0.3 0.3Total 18.4 16.6
* Non-registered member of executive management are the Group Chief Operating Officer and Group Straregy Officer (until end of March 2024).
** Share-based payment comprise costs related to share programs for the years 2021 -2024 recognised in accordance with IFRS 2.
(DKK million) 2024 2023Wages and salaries 554 617Defined contribution plans, see note 20 6 5Share-based payment 2 (5)Remuneration to the Board of Directors 3 3Other staff costs 27 45592 665Staff costs are recognised as follows:Production costs 309 340Sales and distribution costs 88 108Administrative costs 125 111Special items 46 106Employee costs recognised in fixed assets 24 -592 665
Average full-time equivalent staff 1,245 1,500
H+H International | Annual Report 2024 | 96In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
4 Staff costs – continued
(DKK million) 2024 2023Total Remuneration to Executive Board and Board of DirectorsExecutive Board 14.2 12.1Board of Directors 3.2 3.0Total 17.4 15.1
Remuneration Policy for Board of Directors and Executive Board
The Remuneration Policy for H+H International A/S (H+H) was adopted at the annual general meeting on 9 April 2024 by the Board of Directors
to ensure alignment with the new corporate governance recommendations. The overall objective of the Remuneration Policy is to provide a
remuneration framework that supports successful execution of the H+H Group strategy.
The Board of Directors has established a Remuneration Committee that assists the Board of Directors in developing, implementing and continu-
ous complying with the Remuneration Policy. The Charter of the Remuneration Committee as well as a description of the key matters handled by
the Remuneration Committee for the latest financial year is available at www.HplusH.com/board-committees.
The Board of Directors does not receive any form of incentive payment, and remuneration to the Executive Board consists of fixed salary and
other benefits as well as the variable elements short-term incentive programs (STIP) and long-term incentive programs (LTIP).
Executive Board
Short-term incentive programs (STIP)
In addition to the fixed salary, remuneration for the Executive Board consists of an annual cash bonus based on performance related to the
extent of achievement of pre-defined key performance indicators (KPIs). The bonus is therefore not guaranteed. In the case of termination of
employment, the member is entitled to a pro rata bonus up to the date of termination, if the performance achieved by year-end means that a
cash bonus has been earned.
Long-term incentive programs (LTIP)
In March 2024, the Board of Directors of H+H International A/S implemented a new long-term incentive program (“LTIP”) being a performance
share unit (“PSU”) program similar to the LTIP PSU program launched in prior years including financial, ESG and market related KPIs. At initia-
tion, a total of 158,000 PSUs were granted to the participants, including 47,850 PSUs to CEO, Jörg Brinkmann and 17,600 PSUs to CFO, Bjarne
Pedersen.
Based on the average share price for H+H shares trading on the Nasdaq Copenhagen stock exchange during the first ten days after the release
of the 2024, Annual Report on 4 March 2024, the theoretical value was DKK 68.0 per PSU, corresponding to a total theoretical value of DKK 10.8
million for the 2024 LTIP based on the participants upon initiation of the program and their receipt of PSU grants. The vesting period for the
PSUs is approximately three years, with vesting for the 2024 LTIP being in 2027 when the audited annual report for 2026 is publicly announced.
In 2023 and 2022, PSU programs, similar to above, was launched for the Executive Board and certain key employees in the H+H Group. None of
the KPIs included in 2020 PSU programme were met, and as a result no shares vested in March 2024.
Overview of outstanding PSUsMax. PSUs 2024 2023Outstanding 1 January 175,989 207,306Granted* 158,000 96,050Forfeited (7,900) (57,985)Vested* (50,200) (69,382)Oustanding 31 December 275,889 175,989
* Granted and vested based on maximum PSUs earned. Actual shares granted / vested are based on achieving certain financial market and sustainable KPIs.
Pending share programs
The fair value of the programs is determined as the number of shares/PSU’s which are expected to vest. The share price used in calculating the
value of the programs is the average share price on the first 10 days of the trading window when the program is launched. At vesting, grants can
be settled with shares or by cash, based on the company’s decision. Cost for share programs is recognised as staff costs until the expiry of the
vesting periods. Cost is reversed for participants that voluntarily leave the H+H Group (i.e. “bad leavers”).
As of 31 December 2024, the Company had the following pending share programs with associated fair values:
Max. Shares/Expected PSUs to be shares/PSUs Max. value Exp. value grantedto be granted (DKK million)(DKK million)2022-programme, vesting in March 2025 43,589 - 3.4 -2023-programme, vesting in March 2026 77,200 53,268 6.1 4.22024-programme, vesting in March 2027 155,100 124,080 12.2 9.8
* Share price of DKK 88.80 has been applied
Accounting policies
The H+H Group’s incentive schemes comprise share programs for senior executives and certain key employees.
The value of services rendered by employees in return for share grants is measured at the fair value of the shares as of the they of recognition.
For equity settled shares, the grant date fair value is measured and recognised in the income statement as staff costs over the vesting period of
the shares. The costs are set off directly against equity.
On initial recognition of shares, the number of shares expected to vest is estimated, cf. the service condition described. The figure initially recog-
nised is subsequently adjusted for changes in the estimate of the number of shares expected to vest, so that the total recognition is based on the
actual number of vested shares.
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Notes to the consolidated financial statements
5 Other operating income and costs before special items
(DKK million) 2024 2023Other operating income:Gain on disposal of property, plant and equipment 2 26Rental income 8 5Other income 4 514 36Other operating costs:Loss on disposal of property, plant and equipment - (3)Other costs (12) (7)(12) (10)Total 2 26
Accounting policies
Other operating income and costs comprise items secondary to the entities’ activities such as gain and losses and reversal of provisions on
disposal of property, plant and equipment, rental income etc.
6 Depreciation and amortisation before special items
(DKK million) 2024 2023Intangible assets 47 45Land and buildings 36 59Plant and machinery 74 37Fixtures and fittings, tools and equipment 30 46Total 187 187
No impairment was recognised in 2024.
During 2023, 9 factories were closed either temporarily or permanent. In that connection impairment of DKK 101 million were identified related
to equipment and machinery and was recognised as special items. We refer to note 7. No other impairment was recognised in 2023.
7 Special items, net
(DKK million) 2024 2023Gain from sale of Warsaw site 156 -Restructuring costs (68) (133)Impairment of assets, closed down factories - (101)Inefficient part of gas hedges (110) (53)Total (22) (287)Impact of specital items on EBITCost of goods sold (131) (131)Sales costs (19) (3)Administrative costs (28) (52)Other operating income and costs, net 156 -Depreciation, amortisation and impairments - (101)Total (22) (287)
H+H International | Annual Report 2024 | 98In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
7 Special items, net – continued
In Q1 2024 H+H decided to settle the remaining gas contracts entered in the summer of 2022. As a consequence, the day one loss, reflecting the
loss at the time of falling outside the own-use exemption has been recognised as special items amounting to DKK 93 million. In addition, a loss of
gas sold back to the market in Q1 2024 has been recognised as special items amounting to DKK 17 million (2023: DKK 53 million).
In Q4 2024 all conditions for the sale of land and buildings from H+H Polska Sp. z o.o. to a Polish residential developer have been fulfilled. The
sales price of PLN 110 million (approximately DKK 190 million) have been paid in cash and the gain of DKK 156 million has been recognised as
special items.
The restructuring initiated in 2023 continued in 2024 and amounted to DKK 68 million (2023: 133 million), and mainly comprise directly associ-
ated costs to the German re-organisation including costs related to termination of employees.
In addition to the inefficient gas hedge and restructuring costs mentioned above three factories in Germany and two in Poland were closed down
in 2023. This led to the recognition of impairment losses of DKK 101 million which have been recognised in the profit and loss statement as a
special item. The main classes of assets affected by the impairment losses are various operational production assets and other machinery and
equipment used in the production.
Accounting policies
Special items include individually significant and non-recurring events and include items such as transaction costs in a business combination,
gain and loss for sale of significant fixed assets, close down of plants, restructuring costs, including redundancy costs and significant inefficient
commodity hedges. Special items are recognized and measured in accordance with the relevant accounting policy and IFRS accounting stand-
ards, as if the items had not been classified as special items.
Special items are shown separately from the Group’s ordinary operations to facilitate a better understanding of the Group’s financial perfor-
mance.
8 Financial income
(DKK million) 2024 2023Interest income 39 24Total 39 24
Accounting policies
Financial income comprises interest income, capital gains, transactions denominated in foreign currencies, amortisation of financial assets, and
surcharges and allowances under the tax prepayment scheme etc.
9 Financial expenses
(DKK million) 2024 2023Interest expenses 92 61Interests expense, leases 7 5Interest on financial items 99 66Financial expenses relating to pension plans; see note 20 2 0Foreign exchange rate adjustments 1 2Other financial expenses 7 9Total 109 77
Accounting policies
Financial expenses comprise interest expenses on debt measured at amortised cost, past service costs, capital losses, recirculation of cumu-
lative translation differences of entities disposed of payables and transactions in foreign currencies, and amortisation of financial liabilities,
including finance lease obligations etc.
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Notes to the consolidated financial statements
10 Tax
(DKK million) 2024 2023Tax for the year 21 (37)Tax on other comprehensive income 4 (18)Total 25 (55)Total tax can be broken down as follows:Current tax for the year 67 13Adjustment relating to changes in tax rate (4) (1)Adjustment of deferred tax (48) (82)Change in valuation of tax assets - 4Prior-year adjustments 10 11Total 25 (55)Tax for the year can be broken down as follows:Calculated 22.0% (2023: 22.0%) tax on income from ordinary activities (7) (62)Adjustment of calculated tax relative to 22.0% rate (2023: 22.0%) (19) (18)Tax effect of:Change in valuation of tax assets - 4Unrecognised tax losses 40 27Change in tax rate (4) -Non-deductible expenses/non taxable income 1 1Prior year adjustment 10 11Total 21 (37)
Accounting policies
Tax on result for the year comprises current tax and changes in deferred tax for the year. The portion that relates to result for the year is recog-
nized in the income statement, and the portion that can be attributed to items in other comprehensive income or directly in equity is recognized
in other comprehensive income or directly in equity.
Subsidiaries that utilise tax losses in other subsidiaries pay joint taxation contributions to the parent company equivalent to the tax base of
the utilised losses, while subsidiaries with tax losses that are utilised by other subsidiaries receive joint taxation contributions from the parent
company equivalent to the tax base of the tax losses utilised (full absorption). The jointly taxed companies are taxed under the tax prepayment
scheme.
Where the H+H Group receives a tax deduction in the calculation of taxable income in Denmark or abroad as a result of share-based payment
schemes, the tax effect of these schemes is recognised in tax on result for the year. If the total deduction exceeds the total remuneration ex-
pense, the tax effect of the excess deduction is recognised directly in equity.
Approach to taxes
As recommended by the Danish Committee on Corporate Governance, H+H has adopted a tax policy. For more details on our approach to taxes,
we refer to our tax policy which can be found here: https://www.hplush.com/en/compliance
In addition to the Committee’s best practice guidelines, the Global Sustainability Standard Board (GSSB) has issued GRI 207 TAX 2019. The H+H
tax policy addresses the essence of the Committee’s recommendations and the disclosures of GRI 207, and thereby forms the foundation for a
common tax approach for the H+H Group. In order to increase transparency, we present key figures on tax jurisdiction levels below. Corporate
income tax is based on IFRS reporting standards instead of GRI methodology to ensure internal coherence throughout the annual report.
H+H International | Annual Report 2024 | 100In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
10 Tax – continued
Country-by-country key figures - IFRS2024Revenues from Property, Corporate intragroup plant and Balance income Total Revenues transactions equipment of intra-tax paid Number of employee from third-with other tax and company on a cash (DKK million)employeesremunerationparty salesjuridictionsinventorydebtbasisDenmark 46 64 150 - 24 99 -UK 207 111 871 - 354 141 (3)Germany 368 237 600 229 1,139 (240) 2Poland 582 147 846 5 487 (12) 60Switzerland 23 20 127 - 143 4 5Holland 9 8 90 - 2 11 (1)Sweden 4 3 19 - 2 (3) -Czech Republic 6 2 44 - - - -Total 1,245 592 2,747 234 2,151 - 64
Current tax explanation on country level
Non-taxable Calculated local income and tax using Group non-deductable Other (DKK million)tax rate (22%) costs, netadjustments Deferred tax Current taxDenmark 2 (3) - 1 -UK 18 - 4 (22) -Germany 65 3 (37) (31) -Poland (70) (1) 10 - 61Switzerland (7) - (2) 3 6Holland (1) - - 1 -Sweden - - - - -Czech Republic - - - - -Total 7 (1) (25) (48) 67
11 Income statement classified by function
It is Group policy to prepare the income statement based on an adapted classification of costs by function and adjusted for special items. Depre-
ciation, amortisation and impairment of property, plant and equipment and intangible assets are therefore classified by function and presented
on separate lines. Furthermore, special items are presented on a separate line.
The table below shows an extract of the income statement adapted to show depreciation, amortisation and impairment and special items
classified by function:
(DKK million) 2024 2023Revenue 2,747 2,672 Cost of goods sold (2,417) (2,458)Gross profit including depreciation, amortisation and special items 330 214Sales costs (186) (197)Administrative costs (261) (273)Other operating income 170 36Other operating costs (12) (10)EBIT 41 (230)
Depreciation and amortisation comprise:Amortisation of intangible assets 47 45Depreciation of property, plant and equipment 140 142Total 187 187Depreciation and amortisation are allocated to:Cost of goods sold 118 118Sales costs 45 45Administrative costs 24 24Total 187 187
Special items are allocated to:Cost of goods sold 131 232Sales costs 19 3Administrative costs 28 52Other operating items (156) 52Total 22 287
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Notes to the consolidated financial statements
11 Income statement classified by function – continued
Accounting policies
Cost of goods sold comprise costs incurred in generating the revenue for the year. The trading entities recognise cost of sales, and the producing
entities recognise production costs, relating to revenue for the year. This includes the direct and indirect cost of raw materials and consumables,
distribution and wages and salaries.
Sales costs comprise marketing costs etc. which includes costs of sales personnel, and advertising and exhibition costs.
Administrative costs include costs incurred during the year for management and administration, including costs for administrative staff, office
premises and office expenses. Administrative costs also include impairment of trade receivables.
12 Earnings per share (EPS)
2024 2023Average number of shares 16,500,000 16,842,466Average number of treasury shares (162,049) (515,384)Average number of shares in circulation 16,337,951 16,327,082Average number of restricted shares 162,049 58,610Average number of outstanding shares, diluted 16,500,000 16,385,692Result for the year (DKK million) (50) (246)Attributable to non-controlling interest (3) (2)Shareholders in H+H International A/S (DKK million) (53) (248)Earnings per share (EPS) (DKK) (3.2) (15.0)Diluted earnings per share (EPS-D) (DKK) (3.2) (15.0)
See calculation principle in financial ratios on page 121.
13 Intangible assets
2024Customer Other intan-(DKK million) Goodwillrelationsgible assets TotalTotal cost at 1 January 2024 452 363 129 944Foreign currency translation adjustments - 1 - 1Transfer - - 14 14Additions during the year - - 12 12Total cost at 31 December 2024 452 364 155 971Total depreciation and amortisation at 1 January 2024 (30) (184) (68) (282)Amortisation for the year - (37) (10) (47)Total amortisation and impairment losses at 31 December 2024 (30) (221) (78) (329)Carrying amount at 31 December 2024 422 143 77 642
2023Customer Other intan-(DKK million) Goodwillrelationsgible assets TotalTotal cost at 1 January 2023 447 361 108 916Foreign currency translation adjustments 5 2 1 8Transfer - - 4 4Additions during the year - - 26 26Disposals during the year - - (10) (10)Total cost at 31 December 2023 452 363 129 944Total depreciation and amortisation at 1 January 2023 (28) (148) (68) (244)Foreign currency translation adjustments (2) - (1) (3)Amortisation for the year - (36) (9) (45)Amortisation of disposals - - 10 10Total amortisation and impairment losses at 31 December 2023 (30) (184) (68) (282)Carrying amount at 31 December 2023 422 179 61 662
H+H International | Annual Report 2024 | 102In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
13 Intangible assets – continued
Impairment testing
Identification of cash-generating units
The identified cash-generating units ('CGU') are aligned with H+H’s operating segments, being Central Western 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.
2024 2023DKK DKK Cash-generating units and related goodwill Year of originmillionmillionPoland 2003 23 23UK N/A - -Central Western Europe 2006/18/19/20/21 399 399Total 422 422
Management has tested goodwill for impairment in each of the cash-generating units to which such assets have been allocated. In both 2024
and 2023, the impairment tests concluded a reasonable headroom and consequently no impairment of goodwill has been recognised.
Key assumptions
Management tests goodwill for impairment for each CGU to which such assets have been allocated at least once a year or if key assumptions
have changed leading to an indication of possible impairment.
For the purpose of the impairment testing the recoverable amounts were 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 exists 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.
The impairment tests were based on Management's financial expectations for 2025 and financial forecasts for the years 2026-2029 for all CGUs.
The markets are expected to remain at the activity level of 2024 throughout 2025, for then to pick-up from 2026 and onwards. H+H has in both
2023 and 2024 adjusted its capacity to reflect the current demand. Management sees a slowly improved building activity.
It is Management assessment, that the factory close downs in 2023 have not negatively affected the expected future cash in-flows to be generat-
ed 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. In addition the close down of the factories in 2023 has resulted in a number of cost savings along with other cost saving
initiatives in the organisation, which will lead to an improved profitability than seen in recent year's.
Other assumptions are mainly based on historic trends as well as Management’s best estimate and external benchmarked data, having cash
flows at a normalized level from 2026. The key assumptions for the impairment test are annual growth in revenue ('CAGR') and gross margins,
but the valuation is also impacted by growth in terminal period and discounting rates ('WACC').
2024 2023Continental Continental Western Western Poland Europe Poland Europe Carrying amount of intangible assets, property, plant and equipment at 31 December 2024 (DKK million) 372 1,260 435 1,689 Goodwill (DKK millon) 23 399 23 399 Estimated average annual growth in revenue 2025-2029 (CAGR) 4.8% 9.3% 5.3% 5.9%Estimated average annual growth / decrease in gross margin in percentage points 2025-2029 (0.4)% 2.7% 1.0% 1.0%WACC before tax 14.7% 12.2% 14.9% 12.8%WACC after tax 11.9% 8.8% 12.1% 9.2%
The weighted average growth rate used for the terminal period for the years after 2029 has been estimated at 2.0% (2023: 2.0%) for both
CGUs. The weighted average annual growth rate for the terminal period is assessed not to exceed long-term average growth rates on the mar-
kets of the individual CGUs.
Poland's capacity adjustment made in 2023 along with government incentives resulted in a gross margin above expectations, and consequently
we expect a slight decrease during the forecast period.
For CWE, the gross margin has been estimated to increase for the period 2025-2029, after which it is expected to be constant. The rising gross
margin assumes more expedient utilisation of production capacity driven by increased volumes sold and more efficient plant network after
closing down old factories. The annual growth in revenue in the forecast period is expected to be 9.3% in CWE (2023: 5.9%) coming from a low
2023 and 2024 level which is expected to pick up from 2026 and onwards.
In 2024, the Polish market improved compared to 2023 supported by government incentives, and therefore the expected annual growth in reve-
nue in the forecast period of 4.8% (2023: 5.3%) is lower than the expectation for CWE. The CWE market saw continued market decline in 2024,
but Management still expect the market to reach 2022 levels in 2027. As a result of the lower base, the expected annual growth in revenue in the
forecasted period of 9.3% (2023: 5.9%) has increased.
The WACC is based on generally applied principles including the determination of return on equity and cost of debt. Components for the return
on equity, the market risk premium, company specific risk premium and beta-values, is benchmarked to external information. The risk-free rate
for both CGUs for the forecast period has been sourced from trading economics and is equal a 10-years government bond. The risk-free rate for
the terminal period is normalised. The cost of debt is estimated based on the actual margin in the bank agreements and the risk-free rate. WACC
components applied are similar for both CGUs apart from the risk-free rates which differentiate.
H+H International | Annual Report 2024 | 103In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
13 Intangible assets – continued
Sensitivity on changes in key assumptions
Group Management believes that likely changes in the key assumptions will not cause the carrying amount of goodwill and non-current assets
to exceed the recoverable amounts. Sensitivity analysis of impairment tests focuses on changes in discount rate (WACC), revenue growth, gross
margin and long-term growth rate. All other factors are unchanged in the sensitivity analysis.
Based on sensitivity analyses, it is Management’s opinion that no probable change in any key assumptions would cause the carrying amounts of
CGUs to exceed the recoverable amount as at 31 December 2024.
Accounting policies
Goodwill is recognised initially in the balance sheet at cost. Subsequent to initial recognition, goodwill is measured at cost less accumulated im-
pairment losses. Goodwill is not amortised. On acquisition, goodwill is allocated to the cash-generating units which subsequently form the basis
for impairment testing. Goodwill and fair value adjustments in connection with the acquisition of a foreign entity with a functional currency other
than the H+H Group’s presentation currency are accounted for as assets and liabilities belonging to the foreign entity, and translated on initial
recognition into the foreign entity’s functional currency at the exchange rate at the transaction date. Any excess of the fair value over the cost of
acquisition (negative goodwill) is recognised in the income statement at the date of acquisition.
The carrying amount of goodwill is allocated to the H+H Group’s cash-generating units at the date of acquisition or as of the date when the
cash-generating units’ identification has changed. The determination of cash-generating units follows the H+H Group’s organisational and
internal reporting structure.
Goodwill is tested for impairment annually, the first time before the end of the year of acquisition. The carrying amount of goodwill is tested for
impairment together with the other non-current assets of the cash-generating unit to which the goodwill has been allocated and written down
to the recoverable amount in the income statement if the carrying amount exceeds the recoverable amount. As a rule, the recoverable amount
is determined as the present value of the expected future net cash flows from the entity or activity (cash-generating unit) to which the goodwill
relates.
The carrying amounts of other non-current assets are reviewed annually to determine whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated. The recoverable amount of an asset is the higher of its fair value less expected
disposal costs and its value in use. The value in use is determined as the present value of expected future cash flows from the asset or the
cash-generating unit to which the asset belongs.
An impairment loss is recognised whenever the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. Im-
pairment losses are recognised in the income statement under depreciation and amortisation. Impairment losses relating to goodwill are not
reversed. Impairment losses relating to other assets are reversed to the extent that the assumptions or estimates that led to the impairment
loss have changed. Impairment losses are only reversed to the extent that the asset’s new carrying amount does not exceed the value the asset
would have had after depreciation/amortisation if no impairment losses had been charged.
Other intangible assets comprise of customer relations, order-book, trademarks, development projects and patent and licenses. Customer
relations, order book and trademarks acquired in connection with business combinations are measured at cost less cumulative amortisation and
impairment losses. They are amortised using a straight-line method over the expected useful life.
Development projects that are clearly defined and identifiable, and for which technical feasibility, adequate resources and a potential future
market or an application in the entity can be demonstrated, and which the entity intends to manufacture, market or use, are recognised as
intangible assets if the cost can be determined reliably and if there is reasonable certainty that the future earnings or the net selling price will
cover production costs, selling costs, administrative expenses and development costs. Other development costs are recognised in the income
statement as incurred.
Recognised development costs are measured at cost less cumulative amortisation and impairment losses. Cost comprises salaries, amortisa-
tion and other expenses attributable to the H+H Group’s development activities and interest expenses on loans to finance development projects
that relate to the production period. On completion of the development work, development projects are amortised on a straight-line basis over
the estimated economic useful life from the date the asset is available for use. The amortisation period is normally 5-10 years. The amortisation
base is reduced by any impairment losses.
Patents and licenses are measured at cost less cumulative amortisation and impairment losses. Patents and licenses are amortised on a
straight-line basis over the shorter of the remaining patent or contract period and the useful life.
Software and other intangible assets are depreciated on a straight-line basis over the expected useful lives of the assets as follows:
• Software 3-8 years
• Customer relations 10 years
• Other intangible assets 1-10 years
Significant accounting estimates
Impairment of goodwill and non-current assets
Significant accounting estimates relates to determining key assumptions of the impairment test in its whole. In preparing the impairment test,
a range of significant accounting estimates are made, i.e., determining future cash flows, identifying CGU’s, determining growth rates in respec-
tively the forecast period and terminal period and WACC.
The value in use is the discounted value of the expected future cash flows. This valuation involves developing different scenarios to reflect
outcomes. It is based on the forecast for 2025 approved by the Board of Directors and financial forecasts for the years 2026-2029 for all CGUs.
Assumptions are based on historic trends as well as external benchmarked data. Local conditions, such as expected development in macroeco-
nomic and market conditions, are considered. All assumptions are challenged and verified by management.
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Notes to the consolidated financial statements
14 Property, plant and equipment
2024Property, Other plant and equipment, equipment Land and Plant and fixtures and under con-(DKK million)buildingsmachineryfittingsstruction TotalTotal cost at 1 January 2024 1,443 2,532 327 332 4,634Foreign currency translation adjustments 12 31 3 4 50Transfers 17 110 - (141) (14)Additions, including right-of-use assets 40 44 32 45 161Disposals during the year (121) (84) (24) - (229)Total cost at 31 December 2024 1,391 2,633 338 240 4,602Total depreciation and amortisation at 1 January 2024 (689) (1,922) (250) - (2,861)Foreign currency translation adjustments (6) (21) (1) - (28)Depreciation for the year (36) (74) (30) - (140)Depreciation of disposals 47 73 23 - 143Total depreciation and impairment losses at 31 December 2024 (684) (1,944) (258) - (2,886)Carrying amount at 31 December 2024 707 689 80 240 1,716Right-of-use assets included asAdditions 32 - 17 - 49Disposals (70) - (16) - (86)Depreciation (6) - (20) - (26)Depreciation of disposals 6 - 14 - 20Carrying amount at 31 December 67 - 38 - 105
2023Property, Other plant and equipment, equipment Land and Plant and fixtures and under con-(DKK million)buildingsmachineryfittingsstruction TotalTotal cost at 1 January 2023 1,413 2,467 303 316 4,499Foreign currency translation adjustments 33 56 3 2 94Transfers 8 36 - (48) (4)Additions, including right-of-use assets 32 44 34 65 175Disposals during the year (43) (71) (13) (3) (130)Total cost at 31 December 2023 1,443 2,532 327 332 4,634Total depreciation and amortisation at 1 January 2023 (646) (1,815) (216) - (2,677)Foreign currency translation adjustments (13) (40) (1) - (54)Depreciation for the year (59) (37) (46) - (142)Impairment for the year - (101) - - (101)Depreciation of disposals 29 71 13 - 113Total depreciation and impairment losses at 31 December 2023 (689) (1,922) (250) - (2,861)Carrying amount at 31 December 2023 754 610 77 332 1,773Right-of-use assets included asAdditions 21 - 18 - 39Disposals (1) - (3) - (4)Depreciation (6) - (23) - (29)Depreciation of disposals 1 - 3 - 4Carrying amount at 31 December 105 - 42 - 147
H+H International | Annual Report 2024 | 105In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
14 Property, plant and equipment – continued
Right-of-use-assets
The Group leases land and buildings, offices, cars and forklift trucks. Lease terms are negotiated on an individual basis and contain a wide range
of different terms and conditions. Total cash outflows for leases amounts to DKK 32 million (2023: DKK 32 million).
Lease liabilities and interest relating to recognised lease contracts are included in Note 26. Future minimum lease payments relating to leases
not recognised in the balance sheet amount to DKK 0 million (2023: DKK 0 million). At 31 December 2024 the Group was committed to short-
term and low value leases for an amount of DKK 1 million (2023: DKK 1 million).
The maturity analysis of lease liabilities is disclosed in note 26 Financial instruments and risks.
Accounting policies
Land and buildings, plant and machinery, fixtures and fittings, and tools and equipment are measured at cost less accumulated depreciation and
impairment losses.
Cost comprises purchase price and any costs directly attributable to the acquisition up to the date the asset is available for use. The cost of
self-constructed assets comprises direct and indirect costs of materials, components, sub suppliers and labor. Cost is increased by estimated
costs for dismantling and removal of the asset and restoration costs, to the extent that they are recognised as a provision, and interest expenses
on loans to finance the production of property, plant and equipment that relates to the production period. The cost of a combined asset is divid-
ed into separate components that are depreciated separately if the components have different useful lives.
Subsequent costs, for example in connection with replacement of part of an item of property, plant or equipment, are recognised in the carrying
amount of the asset if it is probable that future economic benefits will flow to the H+H Group from the expenses incurred. The replaced part is
derecognised in the balance sheet, and the carrying amount is transferred to the income statement. All other expenses for general repair and
maintenance are recognised in the income statement as incurred.
Property, plant and equipment are depreciated on a straight-line basis over the expected useful lives of the assets as follows:
• Buildings 30-50 years
• Production equipment, autoclaves, mills, cutting machines and moulds 10-30 years
• Plant, machinery and other equipment 5-20 years
• Vehicles, fixtures and IT equipment 3-10 years
• Land is not depreciated
The main part of the Group's non-current assets comprises of production equipment, autoclaves, mills, cutting machines, presses and moulds
which are depreciated over a period of 10-30 years.
The depreciation base is determined taking into account the asset’s residual value and is reduced by any impairment losses. The residual
value is determined at the date of acquisition and reviewed annually. Depreciation ceases if the residual value of an asset exceeds its carrying
amount. The effect on depreciation of any changes in depreciation period or residual value is recognised prospectively as a change in accounting
estimates.
Leases
At the commencement date, the Group recognises a lease liability and a corresponding right-of-use asset at the same amount, except for short-
term leases of 12 months or less and leases of low-value assets. The interest rate implicit in the lease or the H+H Group’s incremental borrowing
rate is used as the discount rate for calculating the lease liability and a corresponding right-of-use asset.
A right-of-use asset is initially measured at cost, which equals the initial lease liability and initial direct costs less any lease incentives received.
The Group has applied the practical expedient option allowed under IFRS by using a portfolio approach for the recognition of lease contracts
related to assets of the same nature and with similar lease terms, i.e. cars and trucks.
Subsequently, the right-of-use asset is measured at cost less depreciation and impairment losses and adjusted for remeasurement of the lease
liability.
The right-of-use asset is depreciated over the earlier of the lease term or the useful life of the asset. The impairment testing of right-of-use
assets follows the same principles as those applied for property, plant and equipment. Right-of-use assets are recognised as property, plant and
equipment.
The Group has elected not to recognise right-of-use assets and liabilities for leases with a term of 12 months or less and leases of low-value as-
sets. Lease payments related to such leases are recognised in the income statement as an expense on a straight-line basis over the lease term.
Management considers all the facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a
termination option. Extension or termination options are only included in the lease term if the lease is reasonably certain to be extended or not
terminated. Judgement is applied in determining the depreciation period and future residual value of the assets recognized and is generally
based on historical experience. Reassessment is done annually to ascertain that the depreciation basis applied is still representative and reflects
the expected life and future residual value of the assets.
H+H International | Annual Report 2024 | 106In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
15 Deferred tax
(DKK million) 2024 2023Deferred tax at 1 January (23) (93)Prior years adjustments (10) (11)Foreign exchange adjustments (1) 2Effect of change in tax rate 4 1Change in deferred tax 48 82Valuation of tax asset - (4)Deferred tax at 31 December 18 (23)(DKK million) 2024 2023Deferred tax relates to:Non-current assets (85) (116)Current assets (1) (2)Liabilities 17 29Tax loss carry-forwards 87 66Total 18 (23)Breakdown of deferred tax and recognition in the balance sheet:Deferred tax assets 54 31Deferred tax liabilities (36) (54)Total 18 (23)
No deferred tax has been recognised on the difference between the cost of equity investments and the carrying amount. This is because the
shareholdings in the equity investments are all considered to be ”shares in a subsidiary”, and any gain/loss is therefore not taxable.
The tax value of loss carry-forwards has been recognised as deferred tax assets in the companies where, based on forecasts, it is considered
likely that this can be utilised in future earnings. A tax value of loss carry-forwards of DKK 73 million at 31 December 2024 (2023: DKK 33 million)
has not been recognized as deferred tax assets, as these are not considered likely to be utilised, especially given the current macro-economic
environment. The carry-forward losses, which does not have an expiry date, relate to Germany, Denmark and Sweden.
Accounting policies
Income tax and deferred tax: Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for
the year, adjusted for tax on the taxable income of prior years and for tax paid on account.
Deferred tax is measured using the balance sheet liability method, providing for all temporary differences between the carrying amount and tax
base of assets and liabilities. However, the following temporary differences are not recognised: Goodwill not deductible for tax purposes and
other items – apart from business combinations – where temporary differences have arisen at the date of acquisition that affect neither profit
nor taxable income. Where alternative tax rules can be applied to compute the tax base, deferred tax is measured on the basis of Management’s
planned use of the asset or settlement of the liability respectively.
Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised as other non-current assets at the value at which they are
expected to be utilised either by elimination against tax on future earnings or by set-off against deferred tax liabilities within the same legal tax
entity and jurisdiction.
Deferred tax assets and liabilities are offset if the H+H Group has a legally enforceable right to offset current tax liabilities and assets or intends
to settle current tax liabilities and assets on a net basis or to realise tax assets and liabilities simultaneously. Adjustment of deferred tax is made
in respect of elimination of unrealised intra-group profits and losses.
Deferred tax is measured on the basis of the tax rules and at the tax rates that will apply under the legislation enacted at the balance sheet
date in the respective countries when the deferred tax is expected to crystallise in the form of current tax. Changes in deferred tax as a result of
changes in tax rates are recognised in the income statement.
Under the joint taxation rules, H+H International A/S, as the administration company, becomes liable to the tax authorities for the subsidiaries’
income taxes as the subsidiaries pay their joint taxation contributions. Joint taxation contributions payable and receivable are recognised in the
balance sheet under receivables from/payables to subsidiaries.
Significant accounting judgements
Recovery of deferred tax assets: Deferred tax assets are recognised for all unutilised tax loss carry-forwards to the extent it is considered likely
that the losses can be offset against taxable income in the foreseeable future. The amount recognised for deferred tax assets is based on judge-
ment of the likely date and size of future tax loss carry-forwards.
H+H International | Annual Report 2024 | 107In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
16 Non-controlling interest
Non-controlling interest
Set out below is summarised financial information for each subsidiary that has a non-controlling interest that are material to the group. The
amounts stated are the consolidated accounting figures of the individual enterprise, determined according to H+H accounting policies.
Amounts are stated before intra-group eliminations.
Baustoffwerke Dresden Porenbetonwerk Laussnitz DOMAPOR GmbH & Co. KGGmbH & Co. KGBaustoffwerke GmbHPrincipal activities Production Production Production Owership (voting rights) 51% 51% 53%Principal place of business Dresden, Germany Laussnitz, Germany Hohen Wangelin, GermanyFinancial information (DKK million) 2024 2023 2024 2023 2024 2023Revenue 100 100 90 55 103 84Result for the period (7) 6 4 (8) 10 5Cash flow from operating activities 6 0 10 (1) 21 1Dividend paid to non-controlling interest - 6 5 0 - 0Total assets 141 151 114 127 122 142Non-current liabilities 73 73 27 14 26 23Current liabilities 7 6 9 13 4 19Accummulated non-controlling interest 15 29 37 38 29 18
Accounting policies
Transactions with non-controlling interests are accounted for as transactions with shareholders. Net assets acquired are not revalued on the
acquisition of non-controlling interests. Any difference between the carrying amount and the acquisition or selling price is recognised in equity.
17 Costs of goods sold and inventories
(DKK million) 2024 2023Raw materials and consumables 144 131Finished goods and goods for resale 291 526Total 435 657Write-downs recognised in the inventories above have developed as follows:Write-downs at 1 January 35 31Write-downs for the year 2 7Realised during the year (5) (2)Reversals (2) (1)Total 30 35Production costs comprised (before special items):Direct production costs 1,320 1,265Wages and salaries 309 340Production overheads 211 216Distribution 326 280Write-downs for the year 2 7Total 2,168 2,108
Accounting policies
Inventories are measured at cost using the FIFO method. Where the net realisable value is lower than the cost, inventories are written down to
this lower value. In the case of goods for resale, and raw materials and consumables, cost comprises purchase price plus expenses incurred in
bringing the inventories to their existing location and condition.
In the case of finished goods, cost comprises raw materials, consumables, direct labor and production overheads. Production overheads
comprise indirect materials and labor as well as maintenance and depreciation of the machinery, factory buildings and equipment used in the
production process, and the cost of factory administration and management.
The net realisable value of inventories is determined as the selling price less any costs of completion and costs incurred to execute the sale. The
net realisable value is determined on the basis of marketability, obsolescence and developments in expected selling price.
H+H International | Annual Report 2024 | 108In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
18 Trade and other receivables
(DKK million) 2024 2023Trade receivables, gross 149 133Write-downs (2) (2)Rebates and bonus (34) (29)Other receivables 39 74Total 152 176
Other receivables include a receivable from rent deposits, VAT, other indirect taxes etc. Other receivables fall due within one year of the balance
sheet date.
(DKK million) 2024 2023Age analysis of trade receivables (gross):Not past due 129 1170-30 days 16 1431-90 days 2 -91-180 days 1 1Over 180 days 1 1Total trade receivables 149 133Write-downs relating to receivables, year-end 2 2
The average credit period on sales of goods is approximately 30 days.
The expected credit losses on trade receivables are estimated using a provision matrix and the Group has recognised a loss allowance of 100%
against all receivables over 180 days because historical experience has indicated that these receivables are generally not recoverable.
In determining the expected credit losses, we have taken into account the historical default experience, the financial position of the counter-
parties and considering various external sources of actual and forecast economic information, as appropriate, in estimating the probability of
default of each of these financial assets occurring within their respective loss assessment time horizon, as well as the loss upon default in each
case.
Receivables that are not past due are predominantly deemed to have a high credit quality and security is normally not required. The Group’s
customers are typically large well-consolidated builders’ merchants and housebuilders, and customers are credit rated on a regular basis. Only
limited security had been provided on 31 December 2024.
(DKK million) 2024 2023Write-downs of receivables:Write-downs at 1 January 2 2 Write-downs for the year 0 1 Realised during the year 0 (1)Reversals 0 0 Write-downs relating to receivables at 31 December 2 2
Accounting policies
Receivables are measured at amortised cost, which in all material respects corresponds to the nominal value less a loss allowance equal expect-
ed credit loss. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of
the respective financial instrument. Expected credit losses on receivables are recognised as other external expenses.
The expected credit losses on receivables are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted
for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction
of conditions at the reporting date, including time value of money where appropriate.
Prepayments recognised under assets comprise expenses incurred in respect of subsequent financial years. Prepayments are measured at
amortised cost.
H+H International | Annual Report 2024 | 109In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
19 Share capital and treasury shares
Nominal value, NumberDKK million2024 2023 2024 2023Share capital at 1 January 16,500,000 17,500,000 165 175Movements - (1,000,000) - (10)Share capital at 31 December 16,500,000 16,500,000 165 165
On 4 May 2023, and with reference to Company Announcement no. 532 of 31 March 2023 and Company Announcement no. 533 of 4 May 2023,
the approved reduction of the share capital by a nominal amount of DKK 10,000,000 from DKK 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.
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 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 cancella-
tion of 483,365 shares of nominally DKK 10.00 each was registered at the Danish Business Authority.
There have been no other movements in the share capital in the last five years.
% of share Nominal value, capital, Treasury shares NumberDKK million8,700 0.09 year-end(0.1)Holding at 1 January 2023 1,218,731 12.19 ( 7.0 )Purchased during the year Granted due to matching share programme in 2020 (65,382) (0.65) 0.4Share capital decrease (1,000,000) (10.00) 6.1Holding at 31 December 2023 162,049 1.62 (1.0)Purchased during the year - - -Share capital decrease - - -Granted due to matching share programme in 2021 - - -Holding at 31 December 2024 162,049 1.62 (1.0)
On 3 March 2022, H+H International A/S initiated a share buy-back program 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 program is in full described in Company Announcement no. 469 of 3 March 2022. In
2022, a total of 1,110,100 shares were acquired at a total purchase price of DKK 149 million in connection with the 2022 share buy-back program.
As announced in Company Announcement 525 the share buy-back program were concluded on 4 January 2023 with the remaining acquisition
of 8,700 shares for a total purchase price of DKK 1 million.
All the treasury shares are owned by H+H International A/S. Treasury shares not related to the share buy-back program are acquired in order to
hedge liabilities related to the share programs. Refer to note 4 for further information on the share programs.
Accounting policies
Equity: Proposed dividends are recognised as a liability at the date of adoption at the annual general meeting (declaration date).
Treasury shares: Acquisition costs, disposal costs and dividends relating to treasury shares are recognised directly in retained earnings under
equity. Capital reductions as a result of cancellation of treasury shares reduce the share capital by an amount equivalent to the nominal value
of the shares. Proceeds from the sale of treasury shares in H+H International A/S in connection with the exercise of share options are taken
directly to equity.
20 Pension obligations
Under defined contribution plans, the employer is obliged to pay a specific contribution (e.g. a fixed amount or a fixed percentage of salary).
Under such plans, the Group does not bear the risk associated with future developments in interest rates, inflation, mortality and disability.
Under defined benefit plans, the employer is obliged to pay a specific amount (e.g. a retirement pension as a fixed amount or a fixed percentage of
final salary). Under such plans, the Group bears the risk associated with future developments in interest rates, inflation, mortality and disability.
Foreign entities that are not insured or only insured in part (defined benefit plans) calculate the obligation actuarially at present value at the
balance sheet date. These pension plans are fully or partly funded in pension funds for the employees. In the consolidated financial statements,
an amount of DKK 21 million (2023: DKK 59 million) has been recognised under liabilities in respect of the Group’s obligations to existing and
former employees after deduction of the assets associated with the plans.
On 31 December 2024, the actuarial valuation of the defined benefit plan in the UK showed a net asset deficit of DKK 7.5 million (GBP 0.8 mil-
lion), consequently triggering IFRIC 14 for H+H to recognise future committed pension contributions of the scheme as they do not have unconditional
right to a refund. Value of future committed pension contributions amounts to DKK 5 million.
H+H International | Annual Report 2024 | 110In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
20 Pension obligations – continued
In the consolidated income statement, an amount of DKK 5 million (2023: DKK 5 million) has been recognised in respect of expenses relating to
insured plans (defined contribution plans). For non-insured plans (defined benefit plans), an amount of DKK 0 million (2023: DKK 0 million) has
been recognised in the consolidated income statement as financial expenses.
The Group has defined benefit plans in the UK, Germany and Switzerland. The UK and Swiss pension plans are managed by a pension fund
– legally separate from the Company – to which payments are made, whereas the German pension plans are unfunded. The board of the UK
pension fund is composed of two representatives appointed by the employer, two elected by the pension fund members and two professional
independent members.
The board of the UK pension fund is required by law and by articles of association to act in the interest of the pension fund members. The board
of the UK pension fund is responsible for the investment policy with regard to the plan assets. Under the pension plan, employees are entitled
to post-retirement annual payments amounting to 1/60 of the final pensionable salary for each year of service before the retirement age of 65.
In addition, the service period is limited to 40 years, resulting in a maximum yearly entitlement (lifetime annuity) of 2/3 of the final pensionable
salary.
The defined benefit pension fund in the UK typically exposes the Company to actuarial risks, such as investment, interest rate, inflation and lon-
gevity. H+H Celcon Pension Fund is supervised by an independent corporate trustee, H+H Celcon Pension Fund Trustee Limited. In accordance
with the legislation governing pension funds, the corporate trustee must ensure among other things that a limited actuarial calculation of the
pension obligations is carried out each year.
Every 3 years a triennial valuation takes place. This valuation is based on more prudent assumptions than used under IAS 19.
The updated triennial valuation, postponed from April 2023, was finally agreed on 13 December 2024, with the Actuarial certificate signed on
27 January 2022, replacing the triennial valuation from April 2020 (current). The updated triennial valuation showed a deficit of DKK 64 million
(GBP 7.4 million), a decreased deficit compared to the triennial valuation from April 2020 of DKK 143 million (GBP 16.5 million). The updated
repayment schedule runs until to 28 February 2025 and H+H UK Limited is obliged to pay core contributions of DKK 2.6 million (GBP 0.3 million)
per month until that date.
The UK pension fund was closed to new entrants in June 2007 and to the accrual of future service benefits in December 2011.
The most recent actuarial valuations (based on IAS 19R) of plan assets and the present value of the defined benefit obligation in UK were carried
out at 31 December 2024 by Mr. Oscar Brown, Fellow of the UK Institute of Actuaries (Axis Actuarial Consulting Ltd.), in Germany by AON and in
Switzerland by Swiss Life. The present value of the defined benefit obligation, and the related service and past service cost, were measured using
the projected unit credit method.
The UK pension fund has been replaced by a defined contribution pension scheme where the Company is not subject to any ongoing investment,
interest rate or mortality risk.
(DKK million) 2024 2023Pensions and similar obligations: Present value of fully or partly funded defined benefit plans 541 574Fair value of plan assets 533 522(Surplus)/Deficit 8 52Present value of unfunded defined benefit plans recognised in the balance sheet 8 7Future committed pension contribution (UK) 5 0Net obligation recognised in the balance sheet 21 59Development in present value of defined benefit obligation:Obligation at 1 January 581 512Foreign exchange adjustments 23 13Calculated interest on obligation 25 23Service costs 1 1Gains/losses as a result of changes in economic assumptions (55) 17Gains/losses as a result of changes in demographic assumptions (4) (1)Empirical changes 1 45Pension paid by employees 4 2Pension paid (27) (31)Obligation at 31 December 549 581Breakdown of the present value of defined benefit obligation:Present value of fully or partly funded defined benefit obligations 541 574Present value of unfunded defined benefit obligations 8 7Obligation at 31 December 549 581
H+H International | Annual Report 2024 | 111In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
20 Pension obligations – continued
(DKK million) 2024 2023Development in fair value of plan assets:Plan assets at 1 January 522 489Foreign exchange adjustments 23 13Calculated interest income 23 23Return on plan assets over and above the calculated interest (35) (6)The Group's contributions to plan assets 30 32The employee's contributions to plan assets 4 2Value of derecognised plan assets (7) -Pensions paid (27) (31)Plan assets at 31 December 533 522Pension costs relating to the current financial year, recognised as staff costs:Pension costs relating to defined contribution plans 6 5Total pension costs 6 5Financial costs relating to the defined benefit plans for the current year:Calculated interest on obligation (24) (23)Calculated interest on plan assets 23 23Net interest on defined benefit plans (1) -Pension costs recognised in other comprehensive income:Gains/losses as a result of change in economic assumptions 56 (17)Gains/losses as a result of change in demographic assumptions 5 1Return on plan assets over and above the calculated interest (35) (6)Future committed pension contribution (12) -Changes due to empirical changes (1) (46)Total 13 (68)
The cost has been recognised in the income statement under staff costs; see note 4. Costs recognised under production costs amount to DKK
3 million (2023: DKK 3 million), costs recognised under sales and distribution costs amount to DKK 2 million (2023: DKK 1 million) and costs
recognised under administrative costs amount to DKK 1 million (2023: DKK 1 million).
(DKK million) 2024 2023Plan assets can be broken down as follows:Diversified Growth Fund* - 82Liability Driven Investment* 170 171Global equities* 190 171Bonds* 133 52Alternatives 44 39Cash 3 7Value of derecognised plan assets (7) -Total 533 522
* All plan assets in the UK, DKK 493 million (2023: DKK 484 million), are investments held in LGIM funds, which in turn invest directly in highly
rated assets that are traded on a stock exchange.
Alternatives relates to the Swiss pension plan of DKK 44 million (2023: DKK 38 million) and includes assets with no quated market price.
(DKK million) 2024 2023Return on plan assetsActual return on plan assets (12) 17Calculated interest on plan assets 23 23Actuarial gain (loss) on plan assets (35) (6)The average assumptions used for the actuarial calculation related to the UK pension at the balance sheet date can be stated as follows:Discount rate (avg.) 5.5% 4.5%Expected inflation rate 3.3% 3.3%Members’ life expectancy from retirement age (years) 22.9 22.5
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Notes to the consolidated financial statements
20 Pension obligations – continued
Sensitivity analysis
The table below shows the sensitivity of the UK pension obligation to changes in the key assumptions for determination of the obligation on the
balance sheet date. The H+H Group is also exposed to developments in the market value of the plan assets. The key actuarial assumptions in
determination of the pension obligation relate to interest rate level and mortality.
The analysis is based on the reasonably likely changes which can be expected on the balance sheet date, provided that the other parameters in
the calculations are unchanged and not subject to consequential changes:
(DKK million) 2024 2023Sensitivity relative to discount rate:If the discount rate falls by 0.5 percentage point, the pension obligation will increase by 32 41Sensitivity relative to inflation rate:If the inflation rate increase by 0.5 percentage point, the pension obligation will increase by 14 22Sensitivity relative to life expectancy from retirement age:If the life expectancy from retirement age increases by 1 year, the pension obligation will increase by 19 21
The Group expects to pay DKK 7 million into the defined benefit pension plan in 2025 (2024: DKK 28 million).
(DKK million) 2024 2023The pension obligation is expected to fall due as follows:0-1 year 7 281-5 years 12 122Over 5 years 24 432Total 43 582
Actuarial assumptions
Discount rate
The discount rate is based on high-quality corporate bonds, and an adjustment has been made to reflect the fact that the duration of the bonds
does not correspond to the duration of the pension obligation.
Price inflation
Inflation is based on market expectations for inflation over the duration of the pension liabilities and is calculated as a single equivalent rate.
Demographic assumptions are based on the latest available mortality projection model.
Accounting policies
Pension obligations: The H+H Group has entered into pension agreements and similar agreements with some of its employees. Obligations relat-
ing to defined contribution plans are recognised in the income statement over the vesting period, and any contributions payable are recognised
in the balance sheet as other payables.
As regards defined benefit plans, the value in use of future benefits to be paid under the plan is determined actuarially on an annual basis. The
value in use is determined on the basis of assumptions concerning future trends in factors such as salary levels, interest rates, inflation and
mortality.
The value in use is determined only for the benefits attributable to service already rendered to the H+H Group. The actuarially deter- mined
value in use less the fair value of any plan assets is recognised in the balance sheet under pension obligations. If a defined benefit pension plan
constitutes a net asset it will trigger IFRIC 14 and recognise future committed pension contributions to the scheme as the Group does not have
unconditional right to a refund.
The pension costs for the year are recognised in the income statement based on actuarial estimates and the financial outlook at the start of
the year. Past service costs are recognised in the income as a financial item. Differences between the expected development in plan assets and
obligations and the realised values determined at year-end are designated as actuarial gains or losses and recognised in other comprehensive
income.
Significant accounting estimates
Defined benefit pension plans: The present value of pension obligations depends on the actuarial assumptions made. These assumptions
comprise the discount rate, inflation rate, estimated return on plan assets, future salary increases, mortality and future developments in pension
obligations.
All assumptions are reviewed at the reporting date. Any changes in the assumptions will affect the carrying amount of the pension obligations.
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Notes to the consolidated financial statements
21 Provisions
(DKK million) 2024 2023Provisions at 1 January 38 47Provisions for the year 54 11Utilised during the year (23) (13)Reversals during the year - (7)Provisions at 31 December 69 38Breakdown of the provisions at 31 December:Warranty obligations 1 1Obligations relating to restoration of sites 28 27Restructuring and other employee related provisions 23 1Other provisions 17 9Total 69 38Expected maturity of provisions:Non-current liabilities 43 31Current liabilities 26 7Total 69 38
H+H’s subsidiaries provide normal warranties in respect of products supplied to customers. The provision for warranty obligations thus relates
to warranties provided in respect of products supplied prior to the balance sheet date. The warranty period varies depending on normal practice
in the markets in question. The warranty period is typically between one and five years. Warranty obligations have been determined separately
for each company based on normal practice in the market in question and historical warranty costs. On 31 December 2024, warranty obligations
relate predominantly to Germany and Poland.
The obligation in respect of restoration of sites relates to H+H’s sites in Germany and Poland. The obligation has been calculated on the basis of
external assessments of the restoration costs.
Accounting policies
Provisions are recognised when, as a result of an event occurring before or at the balance sheet date, the H+H Group has a legal or constructive
obligation, the settlement of which is expected to result in an outflow from the company of resources embodying economic benefits.
The measurement of provisions is based on Management’s best estimate of the amount expected to be required to settle the obligation.
In connection with the measurement of provisions, the costs required to settle the obligation are discounted to net present value if this has a ma-
terial effect on the measurement of the obligation. A pre-tax discount rate is applied that reflects the general interest rate level plus the specific
risks attached to the provision. The changes in present values during the financial year are recognised under financial expenses.
A provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical warranty data.
Provision for restructuring is recognised when a detailed formal plan for the restructuring has been made public, no later than the balance sheet
date, to those affected by the plan.
A provision for onerous contracts is recognised when the benefits expected to be derived by the H+H Group from a contract are lower than the
unavoidable costs of meeting its obligations under the contract.
If the H+H Group has an obligation to dismantle or remove an asset or restore the site on which the asset has been used, a provision equivalent
to the present value of the expected future expenses is recognised.
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Notes to the consolidated financial statements
22 Credit institutions
(DKK million) 2024 2023Bank loans, non-current 1,048 911(DKK million) 2024 2023Bank loans, current - -Lease liabilities 1 January 119 108Amortised borrowing costs (2) (4)Total 1,046 907Change in borrowings from financing activitites:(DKK million) 2024 2023Borrowings 1 January 907 742Change in proceeds - 245Bank overdraft and other debt 139 (80)Borrowings 31 December 1,046 907Change in lease liabilities:Cash flows (32) (32)New/disposed/remeasured lease 10 35Foreign exchange adjustments 1 8Lease borrowings 31 December 98 119
Committed credit facilities is conditional upon compliance with a number of financial covenants; see note 26.
Accounting policies
Bank loans etc. are recognised at the date of borrowing at the proceeds received net of transaction costs incurred. In subsequent periods, the
financial liabilities are measured at amortised cost using the effective interest rate method. Accordingly, the difference between the proceeds
and the nominal value is recognised in the income statement under financial expenses over the term of the loan.
The lease liability is measured at the present value of the remaining lease payments at the reporting date, discounted using the incremental
borrowing rate for similar assets, taking into account the terms of the leases. A remeasurement of the lease liability, for example a change in the
assessment of an option to purchase, results in a corresponding adjustment of the related right-of use assets.
Extension or termination options are included in the lease term if the lease is reasonably certain to be extended or not terminated. Consequent-
ly, all cash outflows that are reasonably certain to impact the future cash balances are recognised as lease liabilities at initial recognition of lease
contracts. The Group reassesses the circumstances leading to it not recognising extension or termination options on an ongoing basis.
23 Contingent liabilities
Operating leases
Material leases for the H+H Group are recognised in accordance with IFRS 16 “Leases”. An amount of DKK 2 million (2023: DKK 1 million) has
been recognised in the consolidated income statement for 2024 in respect of operating leases and rental obligations.
Financial guarantee
Subsidiaries drawdowns at 31 December 2024 amounts to DKK 823 million (2023: DKK 568 million).
In addition, hereto, third party guarantees provided by H+H International A/S and its subsidiaries amounts to DKK 24 million at 31 December
2024 (2023: DKK 24 million).
Pension scheme
In June 2023, the High Court judged that amendments made to the Virgin Media scheme were invalid because the scheme’s actuary did not
provide the associated Section 37 certificate necessary. The High Court’s decision has wide ranging implications, affecting other schemes that
were contracted-out on a salary-related basis, and made amendments between April 1997 and April 2016.
H+H UK’s scheme was contracted out until 31 December 2011 and amendments were made during the relevant period. As such the ruling could
have implications for the H+H Group.
The amount of any potential impact on the defined benefit obligation cannot be confirmed and measured with sufficient reliability at the 2024
year-end. We will review again at the 2025 year-end when we expect further clarity.
Other
The H+H Group is not a party of any material legal proceedings.
H+H International | Annual Report 2024 | 115In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
24 Auditors’ remuneration
(DKK million) 2024 2023Total fees for H+H International A/S's auditors elected at the annual general meeting:Fee 5.0 3.6Total 5.0 3.6The total fee can be broken down as follows:Statutory audit 3.5 3.2Other assurance engagements 1.5 0.1Other services 0.0 0.3Total 5.0 3.6
A few Group enterprises are not audited by the Parent’s appointed auditors (PwC) or the auditors’ foreign affiliates.
Non-audit services provided by PwC Denmark amounted to DKK 1.5 million in 2024 (2023: DKK 0.4 million), relating to assurance services on
sustainability matters and other advisory services.
25 Business combinations
No business combinations were completed in 2024 or 2023.
In relation to the Domapor acquisition 31 December 2021, H+H Deutschland GmbH entered into a Domination and profit/loss transfer agree-
ment ("DPLTA”) with the sellers of DOMAPOR whereby H+H Deutschland GmbH for a 20-year period is obliged to pay an annual consideration
of EUR 0.89 million for the first ten years and EUR 0.82 million for the following ten years, allowing H+H Deutschland GmbH to obtain the rights
related to a minority shareholding of 47.5% in DOMAPOR. This obligation has been recognised as a liability as deferred payments related to the
acquisition.
26 Financial instruments and financial risks
H+H’s financial risk management policy
As a result of its operations, H+H is exposed to various financial risks i.e. foreign exchange risks, as well as capital structure and cash flow risks,
bad debt exposure and financial covenants.
H+H’s financial risk management policy and procedures is thus aimed exclusively at managing the financial risks that are a direct consequence
of H+H’s operations. This note relates only to financial risks directly associated with H+H’s financial instruments.
Foreign exchange risks
H+H presents its consolidated financial statements in DKK. Most of H+H’s products are produced and sold outside Denmark. Sales in markets
outside Denmark account for approximately 90% of revenue, with the UK, Germany and Poland being the largest markets.
All H+H entities do mainly trade in local currencies, such as GBP, EUR and PLN, as all raw materials are sourced locally, and the majority of cus-
tomers are within the given region. The Nordic subsidiaries make their purchases in EUR. Therefore the currency exposure is assessed limited
on ordinary activities. Material foreign exchange exposure does only relate to specific events, such as dividend or significant transactions.
H+H’s foreign exchange hedging policy and procedures states that an individual group subsidiary must not take foreign exchange positions.
Instead, Treasury needs to be consulted, and if relevant, financial instruments in foreign currencies are entered into if the foreign exchange
exposure exceeds certain thresholds, also depending on the character of exposure. Due to the nature of H+H activities, financial instruments in
foreign currencies are only limitedly used.
Commodity price risks
Commodity price risks in H+H mainly relate to fluctuations in Energy prices which are used either directly in the production or through purchase
of components such as lime, where the price could be linked to the certain energy prices. The risk is managed in accordance with the Treasury
Policy, primarily by entering into fixed price agreements with suppliers for a shorter timeframe or passing development in energy prices on to the
customers.
Capital structure and cash flow risks
The H+H Group has significant net interest-bearing debt. An increase in the interest rate level will lower the Group's pre-tax result. It is H+H‘s
policy to hedge interest rate risks on H+H’s loans if it is assessed that the interest payments can be hedged at a satisfactory level. Historically,
the interest rate has only to a very limited extent been hedged and H+H has therefore benefited from lower short-term rates compared with
long-term rates.
The H+H Group’s liquidity risk is defined as the risk that the H+H Group will not, in a worst-case scenario, be able to meet its financial obligations
due to insufficient liquidity. It is the H+H Group’s policy that all surplus funds flow upwards to be managed centrally by the parent company.
H+H’s capital structure contains a Global Cash Pool arrangement supported by individual loans. Most group subsidiaries participate in the
Global Cash Pool arrangement and the parent company sets limits for all overdraft facilities included herein. H+H aims that financing of group
subsidiaries are managed within the Global Cash Pool arrangement, or via intercompany loans from the parent company to the relevant group
subsidiary. If necessary, the parent company may decide to approve that financing of a group subsidiary is obtained externally.
H+H regularly evaluates the capital structure on the basis of expected cash flows with a view to ensuring an appropriate balance be- tween
adequate future financial flexibility and a reasonable return to shareholders.
H+H International | Annual Report 2024 | 116In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
Bad debt exposure
As consequence of it’s ordinary activities, H+H is exposed to the risk of bad debt. This risk is primarily related to receivables in respect of sales
of H+H’s products, which for the majority is invoiced through a number of builders’ merchants across several countries. This reduces the H+H’s
risk of bad debt exposure towards contractors and house builders, but consequently increases it to builders’ merchants.
In line with H+H’s credit risk hedging procedures, all customers are subject to mitigating actions, i.e. credit rating, assessment of payment terms
or credit limits etc., which all constitutes that H+H’s risk of bad debt are at a very low level - which also is supported by the very modest bad debt
losses realised in previous years. The maximum related credit risk corresponds to the carrying amounts recognised in the balance sheet. The
H+H Group does not have any material risks relating to a single customer, business partner or country. Refer to note 18.
Loan agreements and financial covenants
H+H Group’s financing is a committed credit facility with Nordea Danmark, a branch of Nordea Abp, Finland. The Group facility is subject to
covenants related to debt leverage, defined as net adjusted NIBD by 12 months rolling adjusted EBITDA and an interest cover defined as adjusted
NIBD divided by 12 month rolling net interest paid. The covenant is tested and reported end of each quarter until the maturity of the facility. The
Group fulfilled all financial covenants in 2024 and are also expected to be fulfilled in 2025.
Monetary items in foreign currency
2024(DKK million) EUR GBP PLN Others Total DKK TotalTrade receivables 20 38 25 14 97 16 113Other receivables 26 2 6 2 36 3 39Cash 30 137 259 36 462 - 462Trade payables (45) (143) (45) (30) (263) (9) (272)Other payables (35) (95) (50) (8) (187) 7 (181)Deferred payment (99) - - - (99) - (99)Credit institutions (242) (31) (1) - (274) (772) (1,046)Gross exposure (345) (92) 194 14 (229) (755) (984)Net exposure (345) (92) 194 14 (229) (755) (984)
2023(DKK million) EUR GBP PLN Others Total DKK TotalTrade receivables 18 28 33 4 83 19 102Other receivables 58 - 13 2 73 1 74Cash 26 41 40 36 143 - 143Trade payables (51) (175) (45) (8) (279) 1 (278)Other payables (108) (24) (45) (24) (201) (9) (210)Deferred payment (106) - - - (106) - (106)Credit institutions (100) (48) - (12) (160) (751) (911)Gross exposure (263) (178) (4) (2) (447) (739) (1,186)Net exposure (263) (178) (4) (2) (447) (739) (1,186)
Sensitivity of result and equity to market fluctuations
(DKK million) 2024 2023Result Equity Result Equity5% increase in GBP/DKK (3) 14 (1) 165% increase in PLN/DKK 13 43 (1) 2910 57 (2) 45
26 Financial instruments and financial risks – continued
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Notes to the consolidated financial statements
26 Financial instruments and financial risks – continued
The table above shows the sensitivity of result and equity to market fluctuations. A decline in the GBP/DKK and PLN/DKK exchange rates would
result in a corresponding increase in re after tax and equity. The sensitivity analysis has been calculated at the balance sheet date on the basis of
the exposure to the stated currencies at the balance sheet date. The calculations are based solely on the stated change in the exchange rate and
do not take into account any knock-on effects on interest rates, other exchange rates etc.
Interest rate exposure2024 2023Net Weighted Net Weighted interest- time to interest- time to bearing Interest Net maturity bearing Interest Net maturity (DKK million)debthedged positionof hedgingdebthedged positionof hedgingDKK 776 - 776 - 756 - 756 -EUR 254 - 254 - 122 - 122 -PLN (211) - (211) - 20 - 20 -CHF (28) - (28) - (28) - (28) -GBP (101) - (101) - 12 - 12 -Other (8) - (8) - 5 - 5 -Total 682 - 682 - 887 - 887 -
The table above illustrates H+H’s interest rate exposure on financial instruments at the balance sheet date. At 31 December 2024, the Group was
not involved in any interest rate swaps.
All other things being equal, based on the H+H’s average net interest-bearing debt (expressed by quarter), an increase of 1 percentage point per
year in the interest rate level relative to the average interest rate level in 2024 would reduce result for the year before tax and equity by DKK 9
million (2023: DKK 8 million).
The interest rate is variable, changing in accordance with the performance relative to the covenants contained in the loan agreement.
H+H’s financial liabilities fall due as follows:
(DKK million) 2024Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 yearsNon-derivative financial instrumentsCredit institutions and banks 1,046 28 1,094 -Lease liability 98 25 42 32Deferred payment 99 7 27 74Trade payables 272 272 - -Other payables 181 181 - -1,696 513 1,162 107Derivative financial instrumentsOther payables - - - -- - - -Total 1,696 513 1,162 107
(DKK million) 2023Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 yearsNon-derivative financial instrumentsCredit institutions and banks 907 42 943 -Lease liability 119 29 64 74Deferred payment 106 7 33 75Trade payables 278 278 - -Other payables 73 73 - -1,483 429 1,040 149Derivative financial instrumentsOther payables 138 138 - -138 138 - -Total 1,621 567 1,040 149
H+H International | Annual Report 2024 | 118In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
26 Financial instruments and financial risks – continued
Derivative financial instruments
As of 31th December 2024, H+H did not have any derivative financial instruments. In 2023, a gas contract with fixed volumes and prices failed to
meet the ‘own use exemption”, and were therefore recognised using the hedge accounting principles in accordance with IFRS 9.
As of 31 December 2023, the ‘day one loss’ and fair value of the commodity forward contracts amounted to DKK 126 million and DKK 138 million,
respectively, and thus included in other payables with a net liability of DKK 12 million. The notional amount for commodity contracts amounts to
DKK 192 million as of 31th December 2023 and the average hedged price per KwH were DKK 1.03.
Categories of financial instruments
2024 2023Carrying Fair Carrying Fair (DKK million)amountvalueamountvalueTrade receivables 113 113 102 102Derivative financial instrument (day one loss) - - 126 126Other receivables 39 39 74 74Cash 462 462 139 139Total financial assets measured at amortised costs 614 614 441 441Credit institutions and banks 1,046 1,046 907 907Trade payables and other payables 453 453 477 477Total financial liabilities measured at amortised cost 1,499 1,499 1,384 1,384Derivative financial instrument - - 138 138Fair value through other comprehensive income - - 138 138Total financial instruments, net 885 885 1,081 1,081
H+H International | Annual Report 2024 | 119In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
26 Financial instruments and financial risks – continued
Fair values
Fair value for derivative financial instruments measured at fair value
Derivative financial instruments recognised only contain the above-mentioned commodity forward contracts, settled during 2024, which are
measured at fair value using generally accepted valuation techniques based on observable market prices and forward market rates and there-
fore categorised as Level 2 in the fair value hierarchy.
No assets or liabilities are measured at fair value as of 31 December 2024, and thus no assets or liabilities are measured at level 1 or 3 in the fair
value hierarchy in 2023 or 2024.
Classification and assumptions for the calculation of fair value for non-derivative financial instruments measured at amortised cost
Current bank loans at variable interest rates are valued at a rate of 100. The fair value of long-term loans and finance leases is calculated using
models that discount all estimated and fixed cash flows to net present value. The expected cash flows for the individual loan or lease are based
on contractual cash flows. Financial instruments relating to sale and purchase of goods etc. with a short credit period are considered to have a
fair value equal to the carrying amount. The methods are unchanged from last year.
Accounting policies
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 instruments. 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. Gains 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 deriva-
tive financial instruments that do not qualify for hedge accounting are recognized in the income statement.
27 Related parties
The Group’s related parties are the Executive Board and the Board of Directors.
Apart from contracts of employment, no agreements or transactions have been entered into between the Company and the Executive Board.
Remuneration to the Board of Directors and the Executive Board is disclosed in note 4.
H+H International A/S has no controlling shareholders.
28 Events after the balance sheet date
No events have occurred after the balance sheet date that will have a material effect on the H+H Group’s financial position.
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Notes to the consolidated financial statements
Financial ratios
Other financial ratios have been prepared in accordance with the Danish Finance Society‘s guidelines.
The financial ratios under Key figures in the Management’s review have been calculated as follows:
Gross margin Gross profit x 100
Revenue
EBITDA margin EBITDA x 100
Revenue
EBIT margin EBIT x 100
Revenue
Return on invested capital * EBIT
Average invested capital
Earnings per share (EPS) ** Result for the year
Average number of shares outstanding
Diluted earnings per share (EPS-D) ** Diluted earnings
Diluted average number of shares outstanding
Solvency ratio Equity at year-end (attributable to H+H) x 100
Total equity and liabilities, year-end
Financial gearing Net interest-berring debt
EBITDA
NIBD/EBITDA Net interest-bearing debt, year-end
EBITDA
* Return on invested capital is measured on a twelve months basis.
Glossary
bsi Before special items
CAPEX Capital expenditure
SG&A Selling, general and administrative expenses
EBITDA Operating profit before depreciation, amortization and financial items
EBIT Operating profit before financial items
Special items Refer to note 7 for accounting policy for special items
Margins before special items Consists of defined margins adjusted for special items re above and note 7
Organic growth Revenue growth excluding effects from changes in foreign exchange rates and revenue from acquisitions
and divestments
FTE and average FTE Full-time employees and average number of full-time employees
Free cash flow The sum of cash flow from operating and investing activities
Net working capital Net working capital is inventories, trade receivables, and other receivables less trade payables and other
payables.
Invested capital Invested capital is calculated as net working capital plus tangible assets and intangible assets excluding
goodwill deducted by provisions and operating non-current liabilities.
Earnings per share Earnings per share (EPS) and diluted earnings per share (EPS-D) are determined in accordance with IAS 33
Net interest-bearing debt Net interest-bearing debt is credit institutions and lease liabilities less cash funds
CSRD Corporate Social Responsibility Directive
ESRS European Sustainability Reporting Standards
SBM Strategy and Business Model
MDR Minimum Disclosure Requirement
IRO Impacts, Risks and Opportunities
GOV Governance
REC Renewable Energy Certificate
BP Basis for Preparation
EEA European Economic Area
H+H International | Annual Report 2024 | 121In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Parent company
financial statements
2024
Income statement 123
Statement of comprehensive income 123
Balance sheet 124
Statement of changes in equity 125
Statement of cash flows 125
Notes to the parent financial statements
1 Material accounting policy information 126
2 Significant accounting estimate and judgement 126
3 Staff costs and remuneration 126
4 Auditors remuneration 126
5 Financial items 127
6 Tax 127
7 Intangible assets 127
8 Property, plant and equipment 127
9 Deferred tax 127
10 Investments in subsidiaries 128
11 Credit institutions and lease liabilities 129
12 Contingent liabilities 129
13 Financial instruments and risks 129
14 Related parties 130
15 Events after balance sheet date 130
H+H International | Annual Report 2024 | 122In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Income statement Statement of comprehensive income
Note (DKK million) 2024 2023
3, 4 Administrative costs (65) (58)
Other income 64 56
EBITDA before special items (1) (2)
Depreciation and amortisation (6) (5)
EBIT before special items (7) (7)
Special items (3) (6)
EBIT (10) (13)
5 Financial items (257) 133
Result before tax (267) 120
6 Tax - 5
Result for the year (267) 125
Result for the year attributable to:
H+H International A/S' shareholders (267) 125
Result for the year (267) 125
Note (DKK million) 2024 2023
Result for the year (267) 125
Other comprehensive income after tax - -
Total comprehensive income for the year (267) 125
H+H International | Annual Report 2024 | 123In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Balance sheet at 31 December
Note (DKK million) 2024 2023
Intangible assets 37 31
7 Intangible assets 37 31
Office lease, cars and equipment 2 3
8 Property, plant and equipment 2 3
9 Deferred tax assets 11 11
10 Equity investments in subsidiaries 1,660 1,232
13 Receivables from subsidiaries 1,072 1,510
Other non-current assets 2,743 2,753
Total non-current assets 3,782 2,787
13 Receivables from subsidiaries 92 76
Other receivables and prepayments 5 3
Cash 233 33
Current assets 330 112
Total assets 3,112 2,899
Note (DKK million) 2024 2023
Share capital 165 165
Retained earnings 1,301 1,565
Equity 1,466 1,730
11 Lease liabilities 1 2
11 Credit institutions 968 836
Non-current liabilities 969 838
Trade payables 5 7
11 Lease liabilities 1 1
13 Payables to subsidiaries 660 313
Other payables 11 10
Current liabilities 677 331
Total liabilities 1,646 1,169
Total equity and liabilities 3,112 2,899
Assets Equity and liabilities
H+H International | Annual Report 2024 | 124In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Statement of changes in equity Cash flow statement
Note (DKK million)
Share
capital
Retained
earnings Total
Equity at 1 January 2024 165 1,565 1,730
Result for the year (267) (267)
Share-based payment - 3 3
Total change in equity - 3 3
Equity at 31 December 2024 165 1,301 1,466
Equity at 1 January 2023 175 1,435 1,610
Result for the year 125 125
Acquisition of treasury shares - (2) (2)
Share-based payment - (3) (3)
Share capital decrease (10) 10 -
Total change in equity (10) 5 (5)
Equity at 31 December 2023 165 1,565 1,730
Note (DKK million) 2024 2023
Operating profit (EBIT) (10) (13)
Depreciation, amortisation and impairment 6 5
Change in receivables (17) (6)
Change in trade payables and other payables (1) (16)
Other non-cash adjustments 3 (3)
Operating activitites before financial items and tax (19) (33)
4 Financial items, net 8 1
Operating activities (11) (32)
Change in borrowings to subsidiares 57 (240)
Capital increase in subsidiaries (5) -
10 Dividend from subsidiaries 44 134
7 Acquisition of equipment and intangible assets (11) (13)
Investing activities 85 (119)
Free cash flow 74 (151)
11 Proceeds in borrowings - 245
Bank overdraft and other debt 132 (103)
Payment of lease liabilities (1) (2)
Purchase of treasury shares - (2)
Financing activities 131 138
Cash flow for the year 205 (13)
Cash at 1 January 33 44
Foreign exchange adjustments of cash (5) 2
Cash at 31 December 233 33
H+H International | Annual Report 2024 | 125In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
1 Material accounting policy information
The financial statements of H+H International A/S for 2024 have been prepared in accordance with IFRS Accounting Standards as adopted by
the EU and further requirements in the Danish Financial Statements Act.
The accounting policies are consistent with those applied in the consolidated financial statements for 2024, with the following additions:
• Shares in subsidiaries are measured at cost or a lower recoverable amount
• Dividends from subsidiaries and associated companies are recognised as income at the time of declaration unless considered a return of
capital in subsidiary
2 Significant accounting estimates and judgements
Management makes various accounting estimates and judgements that form the basis of presentation, recognition and measurement of the
Company’s assets and liabilities. The estimates and judgements made are based on historical experience and other factors that management
assesses to be reliable, but that by their very nature are associated with uncertainty and unpredictability. Estimates and judgements may there-
fore prove incomplete or incorrect, and unexpected events or circumstances may arise.
Management assesses impairment indicators for investments in subsidiaries and in general determines the recoverable amounts consistent
with the assumptions described in note 13 of the consolidated financial statements.
3 Staff costs and remuneration
The Remuneration of the Board of Directors, key management personnel and Executive Board are described in detail in the Remuneration
Report.
The Executive Board in the Parent Company are the same as for the H+H Group. Please refer to note 4 in the consolidated financial statements
for share-based incentive programs.
(DKK million) 2024 2023
Wages and salaries 43 43
Share-based payment 2 (5)
Other staff costs 1 3
46 41
Staff costs are recognised as follows:
Administrative costs 43 36
Special items 3 5
46 41
Average full-time employees 20 21
Total Remuneration:
Remuneration to the Executive Board 14 12
Remuneration to the Board of Directors 3 3
17 15
4 Auditors remuneration
(DKK million) 2024 2023
Total fees to the auditors elected at the annual general meeting:
Statutory audit 1.2 1.0
Other assurance engagements 1.3 0.1
Other services 0.0 0.2
Total 2.5 1.3
H+H International | Annual Report 2024 | 126In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
5 Financial items
(DKK million) 2024 2023
Interest income from subsidiaries, net 33 22
Dividend from subsidiary 44 134
Write-down of investment in subsidiaries (302) -
Interest expenses, net (26) (18)
Foreign exchange rate adjustments, net (5) (2)
Other financial expenses (1) (3)
Total (257) 133
Write-down of investments in subsidiaries relates to the re-structuring of the German business. Refer to note 10.
6 Tax
(DKK million) 2024 2023
Current tax for the year - (4)
Adjustment of deferred tax - (1)
Total - (5)
Current joint taxation contribution for the year - (5)
Tax for the year can be broken down as follows:
Calculated 22.0% (2023: 22.0%) tax on income from ordinary activities (59) 27
Tax effect of:
Non-deductible expenses/non taxable income 59 (32)
Total - (5)
H+H International A/S is taxed jointly with all its Danish subsidiaries. The current Danish income tax is allocated among the jointly taxed compa-
nies in proportion to their taxable income.
The parent company is the administration company for the jointly taxed Danish companies. Pursuant to the rules on this contained in the Danish
Corporation Tax Act, all companies that are jointly taxed are thus liable to withhold tax at source on interest, royalties and dividends for the joint-
ly taxed companies for contingent liabilities. The Danish companies are further jointly and severally liable for joint registration of VAT.
7 Intangible assets
Intangible assets recognized in the parent company comprises mainly software.
2024 2023
(DKK million)
Intangible
assets
Intangible
assets
Total cost at 1 January 35 23
Additions during the year 11 12
Total cost at 31 December 46 35
Total amortisation at 1 January (4) (1)
Amortisation for the year (5) (3)
Total amortisation at 31 December (9) (4)
Carrying amount at 31 December 37 31
8 Property, plant and equipment
Property, plant and equipment totaled DKK 2 million (2023: DKK 3 million) comprised office leases, cars and equipment.
Lease liabilities and interest relating to recognized lease contracts are included in note 11.
9 Deferred tax
(DKK million) 2024 2023
Deferred tax at 1 January 11 10
Change in deferred tax - 1
Deferred tax at 31 December 11 11
Deferred tax relates to tax loss carry-forwards
The parent company has special carried-forward losses related to sale of property and shares with limited possibilities of use with a taxable
value of DKK 11 million (2023: DKK 11 million) which are not recognised. The losses in question have no expiry date.
Under the joint taxation rules, H+H International A/S, as the administration company, becomes liable to the tax authorities for the subsidiaries’
income taxes as the subsidiaries pay their joint taxation contributions. Joint taxation contributions payable and receivable are recognised in the
balance sheet under receivables from/payables to subsidiaries.
H+H International | Annual Report 2024 | 127In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
10 Investments in subsidiaries
(DKK million) 2024 2023
Acquisition cost at 1 January 1,299 1,299
Additions 730 -
Disposals - -
Cost at 31 December 2,029 1,299
Impairment losses at 1 January (67) (67)
Write-down for the year (302) -
Reversal of previous write-down - -
Impairment losses at 31 December (369) (67)
Carrying amount at 31 December 1,660 1,232
An impairment test for possible impairment of investment in subsidiaries is performed at the end of 2024. The recoverable amount of the in-
vestments in subsidiaries with indication of possible impairment at 31 December 2024 is based on the value in use, which has been determined
using expected net cash flows based on estimates for the years 2025-2029 and a WACC after tax of 8.8% (2023: 9.2%). The weighted average
growth rate used for expected future net cash flows for the years after 2029 has been estimated at 2.0% (2023: 2.0%). It is estimated that the
growth rate will not exceed the long-term average growth rate in the respective company’s markets. The impairment tests are performed by
applying the same principles as the tests for impairment of goodwill in the Group.
As part of the restructuring of the German business, H+H Deutschland GmbH and a subsidiary were legally merged and an intercompany
receivable of DKK 725 million from H+H Deutschland GmbH were converted to equity, and subsequently an impairment of DKK 302 million was
recognised. No other impairment was recognised in 2024 nor 2023.
2024 2023
Registered office Equity interest, % Equity interest, %
KWAY Holding Limited* UK 100 100
H+H Deutschland GmbH** Germany 100 100
Hunziker Kalksandstein AG Switzerland 100 100
H+H Nordics A/S Denmark 100 100
HHI A/S af 3. maj 2004 Denmark 100 100
H+H Sverige AB Sweden 100 100
H+H Polska Sp. z o.o.*** Poland 100 100
H+H Benelux B.V. Netherlands 100 100
Diverse af 29.9.2011 ApS Denmark 100 100
* This activity comprises ownership of H+H UK Holding Limited and thus the activities of H+H UK Limited.
** This activity comprises 51 % ownership of Baustoffwerke Dresden GmbH & Co. KG, 51% ownership of Porenbetonwerk Laussnitz GmbH &
Co. KG. and 52.5% ownership of DOMAPOR Baustoffwerke GmbH.
*** This activity comprises ownership of Grupa Prefabet S.A.
The above list does not include indirectly owned companies without any activities.
Accounting policies
Equity investments in subsidiaries are measured at cost. If there is any indication of impairment or reversal of prior year’s impairment, an impair-
ment test is carried out as described in note 13. Cost is written down to the recoverable amount whenever the carrying amount is higher.
H+H International | Annual Report 2024 | 128In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
11 Credit institutions and lease liabilities
(DKK million) 2024 2023
Bank loans, non-current 970 840
Amortised borrowing costs (2) (4)
Total 968 836
Change in borrowings from financing activitites:
(DKK million) 2024 2023
Borrowings 1 January 836 694
Change in proceeds - 245
Bank overdraft 132 (103)
Borrowings 31 December 968 836
Change in lease liabilities:
(DKK million) 2024 2023
Lease liabilities 1 January 3 6
Cash flows (1) (2)
New/disposed/remeasured lease - (1)
Lease borrowings 31 December 2 3
12 Contingent liabilities
Taxes and duties
The parent company is the administration company for the jointly taxed Danish companies. Pursuant to the rules on this contained in the
Danish Corporation Tax Act, the parent company is thus liable to withhold tax at source on interest, royalties and dividends for the jointly taxed
companies for contingent liabilities, and to withhold corporation tax from 1 January 2013. The Group’s Danish companies are further jointly and
severally liable for joint registration of VAT.
Financial guarantee
The parent company H+H International A/S acts as guarantor for the subsidiaries’ drawdowns on the Group’s Global Cash Pool facility.
Other
The H+H International A/S is not a party of any legal proceedings.
Shares in some subsidiaries as well as some specific land and buildings have been pledged as security for a loan agreement with Nordea Dan-
mark, branch of Nordea Abp, Finland.
13 Financial instruments and risk
The parent company’s activities expose it to various financial risks
• Currency risk and interest rate risk
• Credit risk
• Liquidity risk
Monetary items and sensitivity
2024 2023
Position Sensitivity Position Sensitivity
(DKK million)
Cash and
receivables
Potential
volatility of
exchange
rate
Hypo-
thetical
impact on
result be-
fore tax for
the year*
Hypo-
thetical
impact on
equity
Cash and
receivables
Potential
volatility of
exchange
rate
Hypo-
thetical
impact on
result be-
fore tax for
the year*
Hypo-
thetical
impact on
equity
EUR/DKK 750 1% 8 6 1,346 1% 13 10
GBP/DKK (80) 5% (4) (3) (115) 5% (5) (4)
4 3 8 6
* The hypothetical impact on result and equity is significant to the parent company’s financial statements but not necessarily to the
consolidated financial statements.
H+H International | Annual Report 2024 | 129In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
13 Financial instruments and risk – continued
The parent company has significant monetary items in currencies other than the functional currency in the form of loans to subsidiaries. The
table above shows the parent company’s key monetary positions broken down by currency and derived sensitivity.
Credit risk
Loans to subsidiaries and other related parties are considered to have a low credit risk and therefore the impairment provision to be recognised
during the period is limited to 12 months of expected credit losses.
The credit risk has not increased significantly since the initial recognition and is considered low based on the investment grade credit rating
for the Group and the financial strength of the subsidiaries in the Group. There has been no change in the estimation techniques or significant
assumptions made during the current reporting period in assessing the loss allowance for these financial assets. Loans to subsidiaries are
denominated in EUR and therefore not exposed to foreign exchange risks.
Liquidity risk
Main focus for the parent company is to maintain a financial reserve to cover its obligations and investments.
H+H International A/S’s financial liabilities fall due as follows:
(DKK million) 2024
Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 years
Non-derivative financial instruments
Credit institutions and banks 968 28 1,002 -
Payables to subsidaries 660 660 - -
Lease liability 2 1 2 -
Trade payables 5 5 - -
Other payables 11 11 - -
Total 1,646 706 1,004 -
(DKK million) 2023
Non-derivative financial instruments: Carrying amount 0-1 year 1-5 years Over 5 years
Credit institutions and banks 836 44 870 -
Payables to subsidaries 313 313 - -
Lease liability 4 1 4 -
Trade payables 7 7 - -
Other payables 8 8 - -
Total 1,168 373 874 -
14 Related parties
A management fee totaling DKK 64 million (2023: DKK 56 million) was received by the parent Company from the remainder of the Group.
Transactions between the parent company and subsidiaries also include deposits, loans and interest. There was no material unsettled balances
with related parties at the end of the year.
15 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 financial position.
H+H International | Annual Report 2024 | 130In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Statement by the Executive Board
and the Board of Directors
The Executive Board and the Board of Directors have today discussed and approved the annual report of
H+H International A/S for the financial year 2024.
The Consolidated Financial Statements and the Parent Company Financial Statements have been
prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements
in the Danish Financial Statements Act. Management’s Review has been prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give
a true and fair view of the financial position at 31 December 2024 of the Group and the Parent Company
and of the results of the Group and Parent Company operations and cash flows for 2024.
In our opinion, Management’s Review includes a fair review of the development in the operations and
financial circumstances of the Group and the Parent Company, of the results for the year and of the finan-
cial position of the Group and the Parent Company as well as a description of the most significant risks and
elements of uncertainty, which the Group and the Parent Company are facing.
Additionally, the sustainability statement, which is part of Management’s Review, has been prepared, in all
material respects, in accordance with paragraph 99 a of the Danish Financial Statements Act. This includes
compliance with the European Sustainability Reporting Standards (ESRS) including that the process
undertaken by Management to identify the reported information (the “Process”) is in accordance with the
description set out in the subsection titled “Double materiality assessment“ within the general information
section of the sustainability statement. Furthermore, disclosures within subsection titled “EU Taxonomy“
statements in the environmental section of the sustainability statement are, in all material respects, in
accordance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December
2024 with the file name HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the
ESEF Regulation.
We recommend that the annual report be approved at the annual general meeting.
Copenhagen, 4 March 2025
Executive Board
Jörg Brinkmann Bjarne Pedersen
CEO CFO
Board of Directors
Kent Arentoft Miguel Kohlmann
Chair Vice chair
Stewart Antony Baseley Volker Christmann Kajsa von Geijer
Jens-Peter Saul Helen MacPhee
H+H International | Annual Report 2024 | 131In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Independent Auditor’s Reports
To the shareholders of H+H International A/S
Report on the audit of the Financial Statements
Our opinion
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give
a true and fair view of the Group’s and the Parent Company’s financial position at 31 December 2024 and
of the results of the Group’s and the Parent Company’s operations and cash flows for the financial year 1
January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and
further requirements in the Danish Financial Statements Act.
Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of
Directors.
What we have audited
The Consolidated Financial Statements (pp 89-121) and Parent Company Financial Statements (pp
123-130) of H+H International A/S for the financial year 1 January to 31 December 2024 comprise income
statement and statement of comprehensive income, balance sheet, cash flow statement, statement of
changes in equity and notes, including material accounting policy information for the Group as well as for
the Parent Company. Collectively referred to as the “Financial Statements”.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional
requirements applicable in Denmark. Our responsibilities under those standards and requirements are
further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with the International Ethics Standards Board for Account-
ants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical
requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regula-
tion (EU) No 537/2014 were not provided.
Appointment
We were first appointed auditors of H+H International A/S on 31 March 2022 for the financial year 2022.
We have been reappointed annually by shareholder resolution for a total period of uninterrupted engage-
ment of tree years including the financial year 2024.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of
the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
H+H International | Annual Report 2024 | 132In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Key audit matter How our audit addressed the key audit matter
Revenue recognition including
Recognition of revenue is complex due to the volume of
transactions and variable considerations.
We focused on this area due to the significance of
amounts involved and because recognition of revenue
includes management judgement regarding timing and
provisions for quantum rebates and customer bonuses,
which is complex by nature. Consequently, there is a
risk that the estimates including methods, applied data
or assumptions made by Management are inaccurate.
Further, the volume of transactions involves various
it-systems and business processes, which are complex
and introduce an inherent risk to the revenue recogni-
tion process.
Reference is made to note 3 in the Consolidated Finan-
cial Statements.
Our audit procedures included considering the appropri-
ateness of the accounting policies for revenue recognition
applied by Management and assessing compliance with
IFRS Accounting Standards, including disclosure require-
ments.
We performed risk assessment procedures with the pur-
pose of achieving an understanding of it-systems, busi-
ness procedures and relevant controls related to revenue
recognition. In respect of relevant controls, we assessed
whether they were designed in line with the Group’s
accounting policies and were implemented effectively to
address the risk of material misstatement.
For relevant controls, on which we planned to rely, we test-
ed whether these controls were operating effectively.
We tested revenue recognition on a sampling basis to
underlying evidence, including quantum rebates and
customer bonuses for consistency with terms and condi-
tions of the underlying customer contracts. We evaluated
Management’s calculations for quantum rebates and
customer bonuses, including the evaluation of estimates
made by Management. Further, we tested revenue recog-
nised around year-end to determine whether recognised
in the correct period.
In addition, we applied data analysis in our testing of rev-
enue transactions in order to identify and assess transac-
tions outside the ordinary transaction flows.
Statement on Management’s Review
Management is responsible for Management’s Review (pp 2-88).
Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read Management’s
Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Finan-
cial Statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Moreover, we considered whether Management’s Review includes the disclosures required by the Danish
Financial Statements Act. This does not include the requirements in paragraph 99 a related to the sustain-
ability statement covered by the separate auditor’s limited assurance report hereon.
Based on the work we have performed, in our view, Management’s Review is in accordance with the
Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared
in accordance with the requirements of the Danish Financial Statements Act, except for the requirements
in paragraph 99 a related to the sustainability statement, cf. above.
We did not identify any material misstatement in Management’s Review.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of consolidated financial statements and parent company
financial statements that give a true and fair view in accordance with IFRS Accounting Standards as
adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal
control as Management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the Group’s and the
Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless Management either intends to liquidate
the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.
H+H International | Annual Report 2024 | 133In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we
exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collu-
sion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective-
ness of the Group’s and the Parent Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting esti-
mates and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or condi-
tions that may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inade-
quate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group or the Parent Company
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements, including the
disclosures, and whether the Financial Statements represent the underlying transactions and events in a
manner that gives a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the finan-
cial information of the entities or business units within the group as a basis for forming an opinion on
the Consolidated Financial Statements. We are responsible for the direction, supervision and review of
the audit work performed for purposes of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and, where applicable, actions taken
to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the Financial Statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements we performed procedures to express an opinion on
whether the annual report of H+H International A/S for the financial year 1 January to 31 December
2024 with the filename HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the
Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regu-
lation) which includes requirements related to the preparation of the annual report in XHTML format and
iXBRL tagging of the Consolidated Financial Statements including notes.
H+H International | Annual Report 2024 | 134In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Management is responsible for preparing an annual report that complies with the ESEF Regulation. This
responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and
the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged
using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented
in human-readable format; and
• For such internal control as Management determines necessary to enable the preparation of an annual
report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all mate-
rial respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue
a report that includes our opinion. The nature, timing and extent of procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material departures from the requirements
set out in the ESEF Regulation, whether due to fraud or error. The procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the
tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements including
notes;
• Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF
taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has
been identified;
• Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.
In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December
2024 with the file name HH-2024-12-31-en.zip is prepared, in all material respects, in compliance with the
ESEF Regulation.
Hellerup, 4 March 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
H+H International | Annual Report 2024 | 135In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Poul P. Petersen
State Authorised
Public Accountant
mne34503
Jacob F Christiansen
State Authorised
Public Accountant
mne18628
Independent auditor’s limited assurance
report on the Sustainability Statement
To the stakeholders of H+H International A/S
Limited assurance conclusion
We have conducted a limited assurance engagement on the sustainability statement of H+H International
A/S (the “Group”) included in Management’s Review (the “Sustainability Statement”), pages 49-87, for the
financial year 1 January – 31 December 2024.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to
our attention that causes us to believe that the Sustainability Statement is not prepared, in all material
respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the process
carried out by the management to identify the information reported in the Sustainability Statement (the
“Process”) is in accordance with the description set out in subsection “Description of the processes to
identify and assess material impacts, risks and opportunities” within the general information section of
the Sustainability Statement; and
• compliance of the disclosures in subsection “EU Taxonomy” within the environmental section of the
Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical
financial information (“ISAE 3000 (Revised)”) and the additional requirements applicable in Denmark.
The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion. Our responsibilities under this standard are further described in the Auditor’s responsibilities
for the assurance engagement section of our report.
Our independence and quality management
We are independent of the Group in accordance with the International Ethics Standards Board for Account-
ants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical
requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code.
Our firm applies International Standard on Quality Management 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Management’s responsibilities for the Sustainability Statement
Management is responsible for designing and implementing a process to identify the information reported
in the Sustainability Statement in accordance with the ESRS and for disclosing this Process as included in
H+H International | Annual Report 2024 | 136In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
subsection “Double Materiality Assessment” within the general information section of the Sustainability
Statement. This responsibility includes:
• understanding the context in which the Group’s activities and business relationships take place and
developing an understanding of its affected stakeholders;
• identification of the actual and potential impacts (both negative and positive) related to sustainability
matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the
Group’s financial position, financial performance, cash flows, access to finance or cost of capital over the
short-, medium-, or long-term;
• assessment of the materiality of the identified impacts, risks and opportunities related to sustainability
matters by selecting and applying appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
Management is further responsible for the preparation of the Sustainability Statement, which includes the
information identified by the Process, in accordance with the Danish Financial Statements Act paragraph
99 a, including:
• compliance with the ESRS;
• preparing the disclosures as included in subsection “EU Taxonomy” within the environmental section of
the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that management determines is neces-
sary to enable the preparation of the Sustainability Statement that is free from material misstatement,
whether due to fraud or error; and
• selection and application of appropriate sustainability reporting methods and making assumptions and
estimates that are reasonable in the circumstances.
Inherent limitations in preparing the Sustainability Statement
In reporting forward-looking information in accordance with ESRS, management is required to prepare
the forward-looking information on the basis of disclosed assumptions about events that may occur in the
future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated
events frequently do not occur as expected.
Auditor's responsibilities for the assurance engagement
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about
whether the Sustainability Statement is free from material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence decisions of users taken on the basis of the Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise profes-
sional judgement and maintain professional scepticism throughout the engagement.
Our responsibilities in respect of the Process include:
• Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process;
• Considering whether the information identified addresses the applicable disclosure requirements of the
ESRS; and
• Designing and performing procedures to evaluate whether the Process is consistent with the Group’s
description of its Process, as disclosed in subsection “Double Materiality Assessment” within the
general information section of the Sustainability Statement.
Our other responsibilities in respect of the Sustainability Statement include:
• Identifying where material misstatements are likely to arise, whether due to fraud or error; and
H+H International | Annual Report 2024 | 137In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
• Designing and performing procedures responsive to disclosures in the Sustainability Statement where
material misstatements are likely to arise. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustaina-
bility Statement. The nature, timing and extent of procedures selected depend on professional judgement,
including the identification of disclosures where material misstatements are likely to arise, whether due to
fraud or error, in the Sustainability Statement.
In conducting our limited assurance engagement, with respect to the Process, we:
• Obtained an understanding of the Process by performing inquiries to understand the sources of the
information used by management; and reviewing the Group’s internal documentation of its Process; and
• Evaluated whether the evidence obtained from our procedures about the Process implemented by the
Group was consistent with the description of the Process set out in subsection “Double Materiality
Assessment” within the general information section of the Sustainability Statement.
In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
• Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Sustain-
ability Statement, including the consolidation processes, by obtaining an understanding of the Group’s
control environment, processes and information systems relevant to the preparation of the Sustaina-
bility Statement but not evaluating the design of particular control activities, obtaining evidence about
their implementation or testing their operating effectiveness;
• Evaluated whether the information identified by the Process is included in the Sustainability Statement;
• Evaluated whether the structure and the presentation of the Sustainability Statement are in accordance
with the ESRS;
• Performed inquiries of relevant personnel and analytical procedures on selected information in the
Sustainability Statement;
• Performed limited substantive assurance procedures on selected information in the Sustainability
Statement;
• Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclo-
sures in the Financial Statements and Management’s Review;
• Evaluated the methods, assumptions and data for developing estimates and forward-looking informa-
tion; and
• Obtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-aligned
economic activities and the corresponding disclosures in the Sustainability Statement.
Other matter
The comparative information included in the Sustainability Statement was not part of this assurance
engagement. Our conclusion is not modified in respect of this limitation of scope.
Hellerup, 4 March 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
H+H International | Annual Report 2024 | 138In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Jacob F Christiansen
State Authorised
Public Accountant
mne18628
Poul P
. Petersen
State Authorised
Public Accountant
mne34503
Contact information
Group Head Office
H+H International A/S
Lautrupsgade 7, 5th Floor
DK-2100 Copenhagen Ø
Denmark
Telephone: +45 35 27 02 00
E-mail: info@HplusH.com
www.HplusH.com
Company Reg. No.: 49 61 98 12
H+H Benelux B.V.
Nikkelstraat 4
6031 TR Nederweert
Netherlands
Tel.: +31 49 54 50 169
www.HplusH.nl
H+H Denmark
Skanderborgvej 234
8260 Viby J
Denmark
Tel.: +45 70 24 00 50
www.HplusH.dk
H+H Germany
Hans-Böckler-Straße 33
40468 Düsseldorf
Germany
Tel.: +49 45 54 70 00
www.HplusH.de
H+H Sweden
Mobilvägen 3
246 43 Löddeköpinge
Sweden
Tel.: +46 40 55 23 00
www.HplusH.se
H+H Czech Republic
Beroun-Meˇsto 660
26601 Beroun
Czech Republic
Tel.: +420 311 644 705
www.VAPIS-sh.cz
H+H Switzerland
Aarauerstrasse 75
5200 Brugg
Switzerland
Tel.: +41 56 46 05 466
www.hunziker-kalksandstein.ch
H+H UK
Celcon House
Ightham
Sevenoaks
Kent TN15 9HZ
UK
Tel.: +44 17 32 88 63 33
www.HplusH.co.uk
H+H Poland
ul.Kupiecka 6
03-046 Warsaw
Poland
Tel.: +48 22 51 84 000
www.HplusH.pl
H+H International | Annual Report 2024 | 139In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents
H+H International A/S
Lautrupsgade 7, 5th Floor
2100 Copenhagen Ø
Denmark
Telephone: +45 35 27 02 00
Email: info@HplusH.com
HplusH.com
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