DRAFT
Interim financial report
H1-2025
Company announcement No. 585, 2025
12 August 2025
Interim Financial Report, H1 2025
CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE
“While we’re encouraged by continued progress in the UK and Poland, our performance in Germany
remains below historical norms and continues to negatively impact the Group’s overall results. Given that
the German market has not met industry expectations and shows limited signs of recovery in the short to
medium term, we have revised our full-year guidance accordingly. In response, we change our business
model from national to regional to improve our commercial execution in Germany and operate on a lower
cost base. Across all our markets, underlying housing demand remains resilient, and we continue to
believe in the long-term growth potential of our sector.” says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q2 2025 (Q2 2024)
▪ Revenue growth measured in local currencies (“organic growth”) was 0% (negative 3%).
▪ Sales volume decreased by 2% driven by Germany and the UK partly offset by the Polish market.
▪ Gross profit before special items was DKK 155 million (DKK 132 million), corresponding to a
gross margin of 22% (18%). The increase is mainly driven by normalised input costs.
▪ EBIT before special items was DKK 24 million (negative DKK 5 million), corresponding to an EBIT
margin before special items of 3% (negative 1%).
▪ Financial gearing was 2.6 times EBITDA before special items at the end of Q2 2025 (6.5 times
EBITDA before special items at the end of Q2 2024).
▪ Special items of DKK 612 million was recognised in Q2 2025 related to the German business.
OTHER KEY EVENTS
▪ Shifting German operations from national coverage to a regional model, which includes
restructuring and asset impairments.
▪ A strategic review has been initiated with the aim of enhancing profitability further for the group.
FINANCIAL OUTLOOK FOR 2025
▪ Organic revenue growth for 2025 is expected to be around 4%.
▪ EBIT before special items is expected to be in the range of DKK 100 to 150 million.
H1 2025 INTERIM FINANCIAL REPORT CONFERENCE CALL
In connection with the release of the H1 2025 Interim Financial Report, a conference call for investors and
analysts is scheduled for Wednesday 13 August 2025, at 10:00 a.m. CEST. The presentation will be
followed by a Q&A session. Participants can follow the conference call via live webcast here.
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 2/15
Interim financial report
H1-2025
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
*Invested capital is the average invested capital for the last twelve months. In previous reporting, goodwill was excluded but are now
included. The comparative figures have been adjusted to reflect this as well. ROIC is calculated based on EBIT before special items
divided by invested capital.
FORWARD-LOOKING STATEMENTS
The Interim Financial Report contains forward-looking statements. Such statements are subject to risks
and uncertainties, as various factors, many of which are beyond the control of H+H, may cause actual
developments and results to differ materially from the expectations expressed in this document.
In no event shall H+H be liable for any direct, indirect, or consequential damages or any other damages
whatsoever resulting from loss of use, data, or profits, whether in an action of contract, negligence, or
other action arising out of or in connection with the use of information in this document
Q2 Q2 H1 H1 Full-year
Amounts in DKK million 2025 2024 2025 2024 2024
Income statement
Revenue 719 725 1,394 1,369 2,747
Gross profit before special items 155 132 301 241 579
SG&A (82) (85) (162) (166) (331)
EBITDA before special items 72 41 136 67 250
EBITDA 32 28 96 (75) 228
EBIT before special items 24 (5) 40 (26) 63
EBIT (588) (18) (572) (168) 41
Result before tax (599) (39) (599) (206) (29)
Result for the period (616) (29) (628) (159) (50)
Balance sheet
Assets 2,930 3,424 2,930 3,424 3,473
Invested capital* 2,444 2,752 2,444 2,752 2,569
Net working capital 282 287 282 287 144
Equity 1,035 1,543 1,035 1,543 1,650
Net Interest-bearing debt (NIBD) 837 993 837 993 682
Cash flow
Cash flow from operating activities (27) 56 (85) (9) 145
Cash flow from investing activities (25) (34) (37) (60) 74
Free cash flow (52) 22 (122) (69) 219
Cash flow from financing activities 50 (30) 81 92 103
Financial ratios and others
Organic growth 0% (3)% 1% (4)% 0%
Sales volume (thousand m
3
) 763 779 1,465 1,498 2,967
Gross margin before special items 22% 18% 22% 18% 21%
EBITDA margin before special items 10% 6% 10% 5% 9%
EBITDA margin 4% 4% 7% (5)% 9%
EBIT margin before special items 3% (1)% 3% (2)% 2%
EBIT margin (82)% (2)% (41)% (12)% 1%
Return on invested capital (ROIC) * 5% (8)% 5% (8)% 2%
Solvency ratio 32% 42% 32% 42% 45%
Financial gearing before special items ratio 2.6x 6.5x 2.6x 6.5x 2.7x
Share data
Share price, end of period (DKK) 135 100 135 100 79
Book value per share, end of period (DKK) 63 94 63 94 100
Earnings per share (37.3) (1.7) (38.0) (9.8) (3.2)
Diluted earnings per share (37.3) (1.7) (38.0) (9.8) (3.2)
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 3/15
Interim financial report
H1-2025
MANAGEMENT’S REVIEW
Volumes and prices
Organic growth in the second quarter was 0%.
There was slightly higher prices offsetting the
sales volumes decrease of 2% in the quarter
compared to the same period last year.
Sales volumes in Poland increased compared to
the same quarter last year, while the German
market situation led to a negative volume
development.
Production output in the UK is significantly
higher than last year, but continues to fall short
of demand. However, we saw lower sales
volumes compared to Q2 last year where
significant destocking took place.
Price developments were in line with
expectations for Poland and the UK.
Regional market development
UK
The UK housing market remains strong, with
high demand for H+H products. Falling interest
rates have begun to support more competitive
mortgage offerings, which could help unlock
greater demand and drive further market
improvement.
The government has announced a multi-year
budget plan with a £39 billion ‘Social and
Affordable Homes Programme’. The investment
is to be spread over the next decade – the
largest commitment to social housing in 50
years. The initiative marks a meaningful step
forward and should support continued growth in
the UK’s residential construction sector.
A full prospectus for the new Social and
Affordable Homes Programme will be published
in the autumn 2025.
Poland
The Polish housing market is showing stable
development. Developer activity remains
relatively strong, but recent decline in building
permits suggests a slowdown in the launch of
new projects as existing ones are being
completed. While new mortgage issuance has
decreased, levels remain relatively stable.
Poland continues to have some of the highest
financing costs in Europe, despite the National
Bank of Poland lowering the reference rate to
5% in July 2025. This elevated rate environment
still puts pressure on housing affordability and
dampens financing activity.
Germany
Market conditions in Germany remain difficult,
with residential construction operating well
below historical levels. Although there has been
a slight uptick in building permits, this
improvement does not yet signal a broader
market recovery.
The sector is still struggling with significant over-
capacity, rising construction costs, and unclear
policy direction. The government has yet to
decide how to allocate the €500 billion special
fund and indirect effects on the housebuilding
industry remains unclear. Until more clarity
emerges the outlook remains cautious, and we
do not anticipate a trend reversal in the short to
mid-term.
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 4/15
Interim financial report
H1-2025
INCOME STATEMENT FOR THE SECOND
QUARTER OF 2025
Revenue
Total revenue amounted to DKK 719 million for
Q2 2025 which is a decrease of DKK 6 million
compared to Q2 2024 (DKK 725 million).
Revenue growth measured in local currencies
(“organic growth”) was 0% in Q2 2025 compared
to negative 3% in Q2 2024.
Revenue in the CWE region decreased by 3% to
DKK 260 million compared to DKK 268 million in
Q2 2024. Organic growth in the region was
negative 2% in Q2 2025 driven by lower
volumes offset by higher prices, although prices
in Q2 were lower than in Q1.
Sales in the UK decreased in Q2 2025 by 4% to
DKK 237 million compared to DKK 247 million in
Q2 2024. Organic growth of negative 4% in Q2
2025 was driven by lower volumes vs. same
period last year partly offset by higher prices.
Revenue in Poland increased by 6% to DKK 222
million compared to DKK 210 million in Q2 2024.
Organic growth was 5% driven by both higher
volumes and higher prices.
Gross profit before special items
Gross profit amounted to DKK 155 million
compared to DKK 132 million in Q2 2024,
corresponding to gross margins of 22% and
18%, respectively. The increase is driven by
normalised input costs which is partly offset by
production inefficiencies in the UK..
EBITDA before special items
EBITDA before special items amounted to DKK
72 million compared to DKK 41 million in Q2
2024, corresponding to EBITDA before special
items margins of 10% and 6%, respectively.
Depreciation and amortisation
Depreciation and amortisation in Q2 2025
amounted to DKK 48 million compared to DKK
46 million in Q2 2024.
EBIT before special items
EBIT before special items amounted to DKK 24
million in Q2 2025, compared to negative DKK 5
million in Q2 2024, corresponding to EBIT
margins before special items of 3% and negative
1%, respectively.
Special items
Special items recognised in Q2 2025 relates to
write downs of property, plant and equipment
and other related idle assets as part of the
decision taken to close down factories in
Germany and the plan to reorganise the German
business amounted to DKK 312 million as well
as write down of goodwill and other intangible
assets related to the CWE region of DKK 300
million. The special items recognised in Q2 2024
related to restructuring costs. See note 8 Special
items for further information.
Net financials
Net financials amounted to an expense of DKK
11 million in Q2 2025, compared to an expense
of DKK 21 million in Q2 2024 due to lower NIBD
and a lower interest rate.
Result before tax
Result before tax amounted to a loss of DKK
599 million in Q2 2025, compared to negative
DKK 39 million in Q2 2024 heavily impacted by
special items.
Tax
Tax for Q2 2025 amounted to a net expense of
DKK 17 million compared to a net tax income of
DKK 10 million in Q2 2024.
Result for the period
Result for the period amounted to a loss of DKK
616 million and is attributable to H+H
International A/S’ shareholders by negative DKK
615 million and to non-controlling interests by
negative DKK 1 million compared to a loss of
DKK 29 million in Q2 2024, allocated with a loss
of DKK 28 million and a loss of DKK 1 million,
respectively.
Comprehensive income
Other comprehensive income for Q2 2025
amounted to negative DKK 12 million compared
to positive DKK 12 million in Q2 2024. The year-
on-year development was mainly driven by a
negative development in in foreign exchange
adjustments.
Revenue, external
Amounts in DKK million 2025 2024 2025 2024
Central Western Europe 260 268 513 513
United Kingdom 237 247 447 431
Poland 222 210 434 425
Total 719 725 1,394 1,369
Q2
H1
Revenue
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 5/15
Interim financial report
H1-2025
INCOME STATEMENT FOR THE FIRST SIX
MONTHS OF 2025
Revenue
Total revenue for the first six months of 2025
amounted to DKK 1,394 million compared to
DKK 1,369 million in the first six months of 2024.
Organic growth was 1% in the first six months of
2025 compared to negative 4% for the first six
months of 2024.
Gross profit before special items
Gross profit in the first six months of 2025
amounted to DKK 301 million compared to DKK
241 million in 2024, corresponding to gross
margins of 22% and 18%, respectively.
EBITDA before special items
EBITDA before special items in the first six
months of 2025 amounted to DKK 136 million
compared to DKK 67 million in 2024,
corresponding to EBITDA margins of 10% and
5%, respectively.
Depreciation and amortisation
Depreciation and amortisation in the first six
months of 2025 amounted to DKK 96 million
compared to DKK 93 million in first six months of
2024.
EBIT before special items
EBIT for the first six months of 2025 amounted
to DKK 40 million compared to negative DKK 26
million in the first six months of 2024,
corresponding to EBIT margins of 3% and
negative 2%, respectively.
Special items
Special items recognised in H1 2025 relates to
write downs of property, plant and equipment
and other related idle assets as part of the
decision taken to close down factories in
Germany and the plan to reorganise the German
business amounted to DKK 312 million as well
as write down of goodwill and other intangible
assets related to the CWE region of DKK 300
million.
Net financials
Net financials amounted to an expense of DKK
27 million in first six months 2025, compared to
an expense of DKK 38 million in first six months
of 2024. The development is mainly driven by
lower NIBD and interest rates.
Result before tax
Result before tax for the first six months of 2025
amounted to a loss of DKK 599 million,
compared to a loss of DKK 206 million in first six
months of 2024 mainly driven by special items in
the first six months of 2025.
Tax
Tax for the period amounted to DKK 29 million
compared to a net income of DKK 47 million in
first six months of 2024.
Result for the period
Result for the first six months of 2025 amounted
to a loss of DKK 628 million, compared to a loss
of DKK 159 million in 2024.
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 627
million and a loss to non-controlling interest by
DKK 1 million compared to a loss of DKK 161
million and a profit of DKK 2 million,
respectively, for the first six months of 2024.
Comprehensive income
Other comprehensive income for the first six
months of 2025 was DKK 9 million compared to
DKK 23 million for the first six months of 2024.
CASH FLOW FOR THE SECOND QUARTER
AND FIRST SIX MONTHS OF 2025
Operating activities
Cash flow from operating activities before
financial items and tax amounted to negative
DKK 19 million in Q2 2025 compared to positive
DKK 80 million in Q2 2024. The negative cash
flow in Q2 2025 was driven by seasonal
development in working capital whereas Q2
2024 were positive impacted by de-stocking
initiatives.
Cash flow from operating activities in the first six
months of 2025 was negative DKK 62 million
compared to positive DKK 38 million in H1 2024
due to negative development in net working
capital.
Investing activities
Cash flow from investing activities in Q2 2025
amounted to a cash out-flow of DKK 25 million
compared to a cash out-flow DKK 34 million in
Q2 2024.
Cash flow from investing activities in first six
months of 2025 was negative DKK 37 million,
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 6/15
Interim financial report
H1-2025
compared to negative DKK 60 million in the first
half of 2024.
Financing activities
Cash flow from financing activities was DKK 50
million in Q2 2025 compared to negative DKK
30 million in Q2 2024.
Cash flow from financing activities amounted to
DKK 81 million in first half of 2025 compared to
DKK 92 million in 2024.
BALANCE SHEET AT 30 JUNE 2025
On 30 June 2025, the balance sheet total
amounted to DKK 2,930 million compared to
DKK 3,424 million on 30 June 2024.
Net interest-bearing debt
On 30 June 2025, net interest-bearing debt,
totalled DKK 837 million corresponding to an
increase of DKK 155 million since the beginning
of the year. The increase is primarily driven by a
negative working capital development.
Equity
The consolidated equity decreased by DKK 615
million compared to 31 December 2024 and
decreased by DKK 508 million compared to 30
June 2024.
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
Groups financial position.
FINANCIAL OUTLOOK FOR 2025
▪ Revenue growth measured in local
currencies is expected to be around 4%.
▪ EBIT before special items is expected to
be in the range of DKK 100 million to DKK
150 million.
ASSUMPTIONS FOR THE FINANCIAL
OUTLOOK
Key assumptions for the financial outlook for
2025
• Modest volume growth primarily coming
from the UK and stable development in
Poland.
• The outlook does not assume any
market improvements in Germany.
• Price increases will not cover cost
inflation driven by the German market
situation.
• CAPEX of around DKK 180 million.
FINANCIAL CALENDAR 2025
Q3 2025 Interim Financial Report
11 Nov 2025
Equity
H1 H1
Amounts in DKK million 2025 2024
1 January 1,650 1,678
Result for the period (628) (159)
Actuarial gains/losses on pension
plans
(2) 22
Value adjustments of derivative
financial instruments
4 (7)
Foreign exchange adjustments 7 8
Share based payment 4 1
30 June 1,035 1,543
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 7/15
Interim financial report
H1-2025
STATEMENT BY THE EXECUTIVE BOARD AND THE BOARD OF DIRECTORS
EXECUTIVE BOARD
BOARD OF DIRECTORS
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 8/15
Interim financial report
H1-2025
CONDENSED INCOME STATEMENT
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q2 Q2 H1 H1 Full-year
Amounts in DKK million 2025 2024 2025 2024 2024
Revenue 719 725 1,394 1,369 2,747
Cost of goods sold (564 ) (593 ) (1,093 ) (1,128 ) (2,168 )
Gross profit before special items 155 132 301 241 579
Sales costs (31 ) (28 ) (63 ) (63 ) (122 )
Administrative costs (51 ) (57 ) (99 ) (103 ) (209 )
Other operating income and costs, net (1 ) (6 ) (3 ) (8 ) 2
EBITDA before special items 72 41 136 67 250
Depreciation, amortisation and impairments (48 ) (46 ) (96 ) (93 ) (187 )
EBIT before special items 24 (5 ) 40 (26 ) 63
Special items, net (612 ) (13 ) (612 ) (142 ) (22 )
EBIT (588 ) (18 ) (572 ) (168 ) 41
Financial income 12 7 23 11 39
Financial expenses (23 ) (28 ) (50 ) (49 ) (109 )
Result before tax (599 ) (39 ) (599 ) (206 ) (29 )
Tax (17 ) 10 (29 ) 47 (21 )
Result for the period (616 ) (29 ) (628 ) (159 ) (50 )
Result for the period attributable to:
H+H International A/S' shareholders (615 ) (28 ) (627 ) (161 ) (53 )
Non-controlling interest (1 ) (1 ) (1 ) 2 3
Result for the period (616 ) (29 ) (628 ) (159 ) (50 )
Earnings per share (EPS-Basic) (37.3 ) (1.7 ) (38.0 ) (9.8 ) (3.2 )
Diluted earnings per share (EPS-D) (37.3 ) (1.7 ) (38.0 ) (9.8 ) (3.2 )
Group
Q2 Q2 H1 H1 Full-year
Amounts in DKK million 2025 2024 2025 2024 2024
Result for the period (616 ) (29 ) (628 ) (159 ) (50 )
Items that may be reclassified subsequently to profit or loss:
Fair value adjustments of derivative financial instruments - - - (12 ) (13 )
Gain/(loss) on derivative financial instruments transferred to the income
statements
Tax on fair value adjustment - - - - 1
Foreign exchange adjustments, foreign entities (14 ) 2 7 8 20
(11 ) 5 11 1 17
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains and losses (1 ) 9 (1 ) 28 13
Tax on actuarial gains and losses - (2 ) (1 ) (6 ) (5 )
(1 ) 7 (2 ) 22 8
Other comprehensive income after tax (12 ) 12 9 23 25
Total comprehensive income for the period (628 ) (17 ) (619 ) (136 ) (25 )
Group
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 9/15
Interim financial report
H1-2025
CONDENSED BALANCE SHEET
Group
30 June 31 December 30 June
Amounts in DKK million 2025 2024 2024
ASSETS
Non-current assets
Goodwill 173 422 422
Other intangible assets 165 220 224
Property, plant and equipment 1,416 1,716 1,791
Deferred tax assets 64 54 93
Financial assets 2 2 2
Total non-current assets 1,820 2,414 2,532
Current assets
Inventories 416 435 458
Receivables 282 162 269
Cash 412 462 165
Total current assets 1,110 1,059 892
TOTAL ASSETS 2,930 3,473 3,424
EQUITY AND LIABILITIES
Equity
Share capital 165 165 165
Retained earnings 858 1,483 1,388
Other reserves (71 ) (82 ) (98 )
Equity attributable to H+H International A/S’ shareholders 952 1,566 1,455
Equity attributable to non-controlling interests 83 84 88
Total equity 1,035 1,650 1,543
Non-current liabilities
Pension obligations 17 21 13
Provisions 32 43 57
Deferred tax liability 35 36 44
Credit institutions 1,141 1,046 1,015
Deferred payments, acquisition of subsidiary 86 93 92
Lease liabilities 85 73 117
Total non-current liabilities 1,396 1,312 1,338
Current liabilities
Lease liabilities 23 25 26
Trade payables 231 272 271
Income tax 34 1 3
Deferred payment, acquisition of subsidiary 6 6 6
Provisions 20 26 68
Other payables 185 181 169
Total current liabilities 499 511 543
Total liabilities 1,895 1,823 1,881
TOTAL EQUITY AND LIABILITIES 2,930 3,473 3,424
Net interest-bearing debt 837 682 993
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 10/15
Interim financial report
H1-2025
CONDENSED CASH FLOW STATEMENT
CONDENSED STATEMENT OF CHANGES IN EQUITY
Q2 Q2 H1 H1
Amounts in DKK million 2025 2024 2025 2024
Operating result (EBIT)
(588 ) (18 ) (572 ) (168 )
Depreciation, amortisation and impairment
Change in working capital
(94 ) 100 (182 ) 66
Change in provisions and pension contribution
Other non-cash adjustments
Operating activities before financial items and tax (19 ) 80 (62 ) 38
Financial items, net
(11 ) (21 ) (22 ) (38 )
Income tax paid
Operating activities (27 ) 56 (85 ) (9 )
Acquisition of property, plant and equipment and intangible assets (25 ) (34 ) (37 ) (60 )
Investing activities (25 ) (34 ) (37 ) (60 )
Bank overdraft and other debt 57 (24 ) 95 108
Payment of lease liabilities (7 ) (6 ) (14 ) (16 )
Financing activities 50 (30 ) 81 92
Total cash flow for the period (2 ) (8 ) (41 ) 23
Cash and cash equivalents, opening 420 174 462 139
Foreign exchange adjustments of cash (6 ) (1 ) (9 ) 3
Cash and cash equivalents at 30 June 412 165 412 165
Amounts in DKK million
Share
capital
Hedging
reserve
Translation
reserve
Retained
earnings
H+H
shareholders
share
Non con-
trolling
interests’
share
Total
Equity at 1 January 2025 165 (10 ) (72 ) 1,483 1,566 84 1,650
Total changes in equity
Result for the period - - (627 ) (627 ) (1 ) (628 )
Other comprehensive income - 4 7 (2 ) 9 - 9
Total comprehensive income - 4 7 (629 ) (618 ) (1 ) (619 )
Share-based payment - - - 4 4 - 4
Total changes in equity in 2025 - 4 7 (625 ) (614 ) (1 ) (615 )
Equity at 30 June 2025 165 (6 ) (65 ) 858 952 83 1,035
Equity at 1 January 2024 165 (7 ) (92 ) 1,526 1,592 86 1,678
Total changes in equity
Result for the period - - - (161 ) (161 ) 2 (159 )
Other comprehensive income - (7 ) 8 22 23 - 23
Total comprehensive income - (7 ) 8 (139 ) (138 ) 2 (136 )
Share-based payment - - - 1 1 - 1
Total changes in equity in 2024 - (7 ) 8 (138 ) (137 ) 2 (135 )
Equity at 30 June 2024 165 (14 ) (84 ) 1,388 1,455 88 1,543
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 11/15
Interim financial report
H1-2025
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 30 June 2025 has been prepared in accordance
with the IAS 34 “Interim Financial Reporting” as adopted by the EU and additional requirements in the
Danish Financial Statements Act. The application of IAS 34 means that the disclosures are more limited
than in a complete annual report, but that the interim financial report complies with the recognition and
measurement principles in the International Financial Reporting Standards (IFRS). The interim financial
report has not been audited or reviewed by H+H’s auditors.
The accounting policies are consistent with those applied in the 2024 Annual Report, which includes a full
description of the accounting policies applied.
2. Adoption of new and revised IFRSs
H+H International A/S has adopted all new or revised and amended International Financial Reporting
Standards (IFRSs) and interpretations (IFRIC) issued by IASB and endorsed by the EU effective for the
financial year 2025. It is assessed that the revisions and amendments have not had a material impact on
the consolidated financial statements.
3. Risk Management
H+H’s principal risks and the external factors that may affect H+H are provided in the 2024 Annual
Report. These are unchanged as of 30 June 2025.
4. Significant accounting estimates and judgements
Determining the carrying amounts of some assets and liabilities requires Management to make
judgements, estimates and assumptions concerning future events. The estimates and assumptions made
are based on historical experience and other factors that are believed by Management to be sound under
the circumstances but that, by their nature, are uncertain and unpredictable. Financial statement items in
which more significant accounting estimates and judgements are applied are listed in Note 2 of the 2024
Annual report for H+H International A/S. In addition, significant estimates has been made in assessing
the recoverable amount for assets impacted by the German market situation.
The estimates and assumptions may be incomplete or inaccurate, and unforeseen events or
circumstances may occur. Moreover, the H+H Group is subject to risks and uncertainties that may lead to
the actual outcomes vary from these estimates and assumptions. It may be necessary to change
estimates and assumptions made previously as a result of changes in the factors on which these were
based or as a result of new knowledge or subsequent events.
5. Seasonal fluctuations
The sales pattern for H+H’s products is seasonal. Sales in the second and third quarters are traditionally
higher than during the rest of the year. As a part of H+H’s cost base is not directly variable with revenue,
deviations from projected sales may result in fluctuations in the Company’s earnings.
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 12/15
Interim financial report
H1-2025
6. Income statement classified by function
The above table shows an extract of the income statement adapted to show depreciation and
amortisation classified by function.
7. Geographical information
When presenting information on geographical areas, information on revenue is based on countries with
the exception of the “Central Western Europe” region which comprises Germany, Switzerland, Denmark,
Sweden, the Czech Republic, Netherlands and Belgium. Revenue for Germany for Q2 2025 amounted to
DKK 141 million compared to DKK 164 million in Q2 2024 and DKK 278 million for the first six months of
2025 compared to DKK 314 million for the first six months of 2024.
INCOME STATEMENT CLASSIFIED BY FUNCTION
Amounts in DKK million Q2 2025 Q2 2024 H1 2025 H1 2024
Revenue 719 725 1,394 1,369
Cost of goods sold (594) (622) (1,153) (1,187)
Gross profit including depreciation and amortisation 125 103 241 182
Sales cost (41) (40) (84) (86)
Administrative costs (59) (62) (114) (114)
Other operating income and costs (1) (6) (3) (8)
EBIT before special items 24 (5) 40 (26)
Special items, net (612) (13) (612) (142)
EBIT (588) (18) (572) (168)
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 40 38 65 64
Amortisation of intangible assets 8 8 31 29
Total 48 46 96 93
Depreciation, amortisation and impairment are allocated to:
Production costs 29 29 60 59
Sales costs 10 12 21 23
Administration costs 9 5 15 11
Total 48 46 96 93
Amounts in DKK million Q2 2025 Q2 2024 H1 2025 H1 2024
Central Western Europe 260 268 513 513
United Kingdom 237 247 447 431
Poland 222 210 434 425
719 725 1,394 1,369
Revenue
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 13/15
Interim financial report
H1-2025
8. Special items, net
As a result of the persistently low-volume environment in the German market and increasing competitive
pressure, H+H has decided to close down some of the previously mothballed factories permanently and
restructure the German organisation. Therefore, an assessment of the recoverable amounts of production
and related equipment, closed down plants and the overall market in general has been carried out. The
assessment has led to the recognition of impairment losses of DKK 312 million which have been
recognised in the profit and loss statement as a special item.
The review included an assessment of estimated sales value less cost to sell or disposal for all closed
sites, which has been based on initial discussion with external parties and historically experience (fair
value level 3). The main classes of assets affected by the impairment losses are various operational
production assets, i.e. machinery and equipment used in production, buildings and other related idle
assets.
In addition, the intangible assets related to our German market has been assessed for possible
impairment indicators, i.e. if the given assets still has any use for H+H and whether the future cash flows
coming from the relevant CGU would cover the carrying value. Based on this an impairment loss of DKK
300 million were recognised. The main classes of assets affected by this impairment relates to goodwill,
customer relations and other intangible assets. See note 9 for further details on the goodwill impairment
test.
Special items H1 2024 related mainly to the day one loss from settling gas contracts, reflecting the loss at
the time of falling outside the own-use exemption amounting to DKK 110 million and restructuring costs of
DKK 32 million.
SPECIAL ITEMS, NET
Amounts in DKK million Q2 2025 Q2 2024 H1 2025 H1 2024
Impairment of fixed assets, mothballed and closed down factories 272 - 272 -
Impairment of other idle assets related to closed factories 40 - 40 -
Impairment of goodwill, customer relations and other intangible assets 300 - 300 -
Restructuring costs - 13 - 32
Inefficient part of gas hedges, including settlement - - - 110
Total 612 13 612 142
Impact of special items on EBIT
Cost of goods sold 40 1 40 116
Sales and administrative costs - 12 - 26
Depreciation, amortisation and impairments 572 - 572 -
EBIT before special items 612 13 612 142
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 14/15
Interim financial report
H1-2025
9. Impairment testing of goodwill
The Group performs impairment tests on intangible assets annually and whenever there is an indication
that intangible assets may have to be impaired. The annual impairment test is performed as per 31
December based on financial budgets approved by management covering the following financial year. As
of 30 June 2025, the Group performed a review for indications of impairments. Due to the persistently
low-volume market and no signs of recovery in the short- to mid-term, increasing competitive situation
and , Management assessed that impairment indicators for the CWE region exists, and as such an
impairment test has been carried out.
The impairment test for CWE resulted in recognition of an goodwill impairment loss of DKK 250 million in
addition to the DKK 50 million impairment of customer relations and software systems which no longer
has any value to H+H and DKK 272 million write down of property, plant and equipment to fair value less
cost to sell as described in note 8 Special items. For the purpose of the impairment testing of goodwill the
recoverable amounts was the value in use calculated by using a discounted cash flow model (‘DCF’).
Management has lowered its expectations in the forecasting period to an average growth of 2.8%
(previously 9.3%) mainly driven by no signs of a pick-up of the volumes on the short- and mid-term as
well as lowered the average gross margin increase in the forecast period of 1.3% (previously 2.7%). 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 marked risk premium, company specific risk premium and
beta-values, is benchmarked to external information. The slight decrease is mainly due to a slight
decrease in interest rates. The weighted average growth rate used for the terminal period for the year
after 2029 has been estimated at 2.0% (31 December 2024: 2.0%).
Applied assumptions and carrying amounts for CWE are illustrated below.
Sensitivity for changes in key assumptions
The results of the goodwill impairment tests are impacted by key assumptions outlined above.
Change in gross margin of 0.5%-point impacts the results by approximately DKK 75 million. A change in
revenue of 2.0%-point impacts the results by approximately DKK 40 million. A change of WACC after tax
or terminal period growth of 0.5%-point impacts the result by approximately DKK 70 million.
10. Pension obligations
H+H has defined-benefit pension plans in the UK, Switzerland, and Germany. The UK and Swiss pension
plans are managed by a pension fund to which payments are made, whereas the German pension plan is
funded from current earnings. H+H’s pension obligations predominantly relate to the plans in the UK.
For interim periods, H+H’s defined-benefit pension obligations are based on valuations from external
actuaries carried out at the end of prior financial year considering any subsequent movements in the
obligation due to pension costs, contributions etc. up until the reporting date. Actuarial calculations are
updated or extrapolated quarterly.
The net pension obligation on 30 June 2025 amounts to DKK 17 million, compared to DKK 21 million on
31 December 2024. The decrease is driven by payments, interest, value adjustment and currency
adjustment.
Amounts in DKK million
30 June 2025 31 December 2024
Carrying amount of intangible assets, property, plant and equipment
excluding goodwill
875
1,260
Goodwill (after impairment) 150
399
Estimated average annual growth in revenue 2025-2029 (CAGR) 2.8%
9.3%
Estimated average annual increase in gross margin in %-points 2025-2029 1.3% 2.7%
WACC before tax 11.7% 12.2%
WACC after tax 8.4% 8.8%
DRAFT
H+H International A/S | Lautrupsgade 7, 5th Floor | 2100 Copenhagen Ø | Denmark | Tel. +45 35 27 02 00 | www.HplusH.com | Company reg. no. 49 61 98 12 15/15
Interim financial report
H1-2025
11. Financial resources and cash flow
On 30 June 2025, net interest-bearing debt, totalled DKK 837 million corresponding to an increase of
DKK 155 million since the beginning of the year. The increase is primarily driven by a negative working
capital development.
H+H’s financing is subject to usual financial covenants, which have been fulfilled in the first six months of
2025 and are also expected to be fulfilled for the full year 2025.
12. Share-based payment
The performance-share-units schemes for 2023 and 2024 are active and presented in the 2024 Annual
Report.
In April 2025, the Board of Directors of H+H International A/S implemented a new long-term incentive
programme (“LTIP”) being a performance share unit (“PSU”) program. At initiation, a total of
approximately 114,600 PSUs were granted to the participants, including 30,400 PSUs to CEO Jörg
Brinkmann and 12,350 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 business days after the release of
the 2024 Annual Report on 4 March 2025, the theoretical value per PSU is DKK 111.32, corresponding to
a total theoretical value of DKK 12.8 million if all 114,600 PSU’s were to vest. The vesting period for the
PSUs is approximately three years, with vesting being in 2028 when the audited annual report for 2027 is
published.
13. Tax
14. Related parties
Related parties of H+H with significant influence include the Board of Directors and the Executive Board
of the Company and their close family members. Related parties also include companies in which the
aforementioned persons have control or significant interests.
Transactions with related parties
H+H did not enter into any significant transactions with members of the Board of Directors or with
members of the Executive Board, except for compensation and benefits received as a result of their
membership of either the Board of Directors, employment with H+H or shareholdings in H+H.
15. Share capital
There have been no movements in the share capital in the last five years except for the changes stated in
Note 19 “Share capital and treasury shares” of the 2024 Annual Report.
16. Events after the balance sheet date
No events have occurred after the balance sheet date that will have a material effect on H+H Groups
financial position.
Amounts in DKK million Q2 2025 Q2 2024 H1 2025 H1 2024
Current tax (21) (5) (35) (9)
Movement in deferred tax 4 15 6 56
Tax (17) 10 (29) 47