DRAFT
Interim financial report
Q3-2025
Company announcement No. 588, 2025
11 November 2025
Interim Financial Report, Q3 2025
CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE
“As we enter the final quarter, market conditions remain challenging, with persistent headwinds
and ongoing industry uncertainty. We continue to navigate this environment through disciplined
cost management and a sharp operational focus. Recent actions, such as our reorganising in
Germany, highlight our commitment to ensuing resilience across the business. While near-term
challenges persist, our decisions remain guided by a long-term perspective. With flexibility in
our operations and investments, we are well positioned to respond to market shifts and capture
opportunities as conditions improve. Underlying demand remains stable, reinforcing our
confidence in the sector’s long-term fundamentals.” says CEO Jörg Brinkmann.
PERFORMANCE HIGHLIGHTS FOR Q3 2025 (Q3 2024)
▪ Revenue growth measured in local currencies (“organic growth”) was 2% (2%).
▪ Sales volume increased by 2% driven by UK partly offset by Germany.
▪ Gross profit before special items was DKK 179 million (DKK 174 million), corresponding to a
gross margin bsi of 24% (24%).
▪ EBIT before special items was DKK 53 million (DKK 53 million), corresponding to an EBIT margin
before special items of 7% (7%).
▪ Financial gearing was 2.5 times EBITDA before special items at the end of Q3 2025 (4.4x)
▪ Special items for the quarter amounted to DKK 43 million and relates to the reorganisation in
Germany.
FINANCIAL OUTLOOK FOR 2025
▪ Organic revenue growth for 2025 is expected to be around 0%.
▪ EBIT before special items is expected to be in the range of DKK 85 to 115 million.
PRESENTATION OF THE Q3 2025 INTERIM FINANCIAL REPORT
In connection with the release of the Q3 2025 Interim Financial Report, a conference call for investors
and analysts is scheduled for Wednesday 12 November 2025, at 10:00 a.m. CET. 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
Q3-2025
KEY FIGURES – H+H GROUP
Financial ratios have been calculated in accordance with recommendations from the Danish Society of Financial Analysts.
*Invested capital are the average invested capital for the last twelve months. In prior periods 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.
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2025 2024 2025 2024 2024
Income statement
Revenue 738 729 2,132 2,098 2,747
Gross profit before special items 179 174 480 415 579
SG&A (84) (82) (246) (248) (331)
EBITDA before special items 93 101 229 168 250
EBITDA 50 92 146 17 228
EBIT before special items 53 53 93 27 63
EBIT 10 44 (562) (124) 41
Result before tax 0 26 (598) (180) (29)
Result for the period (10) 19 (637) (140) (50)
Balance sheet
Assets 2,993 3,435 2,993 3,435 3,473
Invested capital* 2,309 2,654 2,309 2,654 2,569
Net working capital 259 212 259 212 144
Equity 1,021 1,546 1,021 1,546 1,650
Net Interest-bearing debt (NIBD) 779 887 779 887 682
Cash flow
Cash flow from operating activities 102 135 17 126 145
Cash flow from investing activities (26) (13) (63) (73) 74
Free cash flow 76 122 (46) 53 219
Cash flow from financing activities (20) (32) 61 60 103
Financial ratios and others
Organic growth 2% 2% 1% (1)% 0%
Sales volume (thousand m
3
) 791 775 2,256 2,273 2,967
Gross margin before special items 24% 24% 23% 20% 21%
EBITDA margin before special items 13% 14% 11% 8% 9%
EBITDA margin 7% 13% 7% 1% 9%
EBIT margin before special items 7% 7% 4% 1% 2%
EBIT margin 1% 6% (26)% (6)% 1%
Return on invested capital (ROIC) * 6% 0% 6% 0% 2%
Solvency ratio 31% 42% 31% 42% 45%
Financial gearing before special items ratio 2.5x 4.4x 2.5x 4.4x 2.7x
Share data
Share price, end of period (DKK) 97 92 97 92 79
Book value per share, end of period (DKK) 62 94 62 94 100
Earnings per share (0.7) 1.0 (38.7) (8.7) (3.2)
Diluted earnings per share (0.7) 1.0 (38.7) (8.7) (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
Q3-2025
MANAGEMENT’S REVIEW
Volumes and prices
Organic growth in the second quarter was 2%.
Sales volumes in Poland grew by 3%, despite a
strong comparison period last year. In the UK,
additional shifts and improved efficiency across
the production network supported an 8%
increase in sales volumes compared to the
same period last year. In contrast, the
challenging German market environment
resulted in a decline in volumes during the
period for CWE.
Overall prices were in line with the same period
last year.
Regional market development
UK
Following strong activity earlier in the year,
market conditions have softened in the UK as
affordability challenges particularly for first-time
buyers continued to weigh on demand. Inflation
has remained high, prompting slower rate cuts
from the Bank of England, while rising bond
yields have kept mortgage rates higher than
expected.
Planning reforms remains a key government
priority however, the anticipated uplift in
newbuild activity has yet to materialise. Over the
longer term, the industry should benefit from
recent government planning reforms, though
progress remains slow as local authorities work
to adopt new local plans and the updated
National Planning Policy Framework. To
complement these supply-side measures and
achieve its housing ambitions, the government
will also need to address demand-side
challenges, particularly those faced by first-time
buyers.
Poland
The Polish housing market remains broadly
stable, though overall activity is lower than a
year ago. Building permits continue to decline as
developers adopt a cautious stance amid
demand uncertainty and elevated financing
costs, despite generally stable credit conditions.
The National Bank of Poland has lowered its
reference rate to 4.5%, marking the third
reduction in six months, yet rates remain among
the highest in Europe.
Rising geopolitical tensions have also pushed
issues of civil security to the forefront of public
and economic discussion. Growing concerns
over personal safety may influence both
homebuyer sentiment and investment decisions,
potentially weighing on the near-term outlook for
the housing market.
Germany
In Germany, building permits have shown some
increases, in recent months after a relatively flat
start to 2025. While this slight uptick is
encouraging, it does not yet indicate a broader
market recovery. Until greater clarity emerges
the outlook remains cautious, and a meaningful
trend reversal is not expected in the short to
medium term.
OTHER KEY EVENTS
Reorganisation of Germany
As announced in company announcement no.
584, a reorganisation of the setup in Germany
has been initiated. The transition from a
nationally focused business model to a regional
structure will enable us to operate with a lower
cost base and enhance regional profitability.
During Q3, we recognised special items of DKK
43 million related to the programme, primarily
covering severance costs. For the full year, we
expect total expenses in the range of DKK 50–
70 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 4/15
Interim financial report
Q3-2025
INCOME STATEMENT FOR THE THIRD
QUARTER OF 2025
Revenue
Total revenue amounted to DKK 738 million for
Q3 2025 which is an increase of DKK 9 million
compared to Q3 2024 (DKK 729 million).
Revenue growth measured in local currencies
(“organic growth”) was 2% in Q3 2025 (Q3 2024
was 2%).
Revenue in the CWE region decreased by 6% to
DKK 255 million compared to DKK 272 million in
Q3 2024. Organic growth in the region was
negative 7% in Q3 2025 driven by lower
volumes.
Revenue in the UK increased in Q3 2025 by 6%
to DKK 247 million compared to DKK 234 million
in Q3 2024. Organic growth of 8% in Q3 2025
was driven by higher volumes.
Revenue in Poland increased by 6% to DKK 236
million compared to DKK 223 million in Q3 2024.
Organic growth was 5% driven by both higher
volumes and higher prices.
Gross profit before special items
Gross profit amounted to DKK 179 million
compared to DKK 174 million in Q3 2024,
corresponding to gross margins of 24% in both
quarters.
EBITDA before special items
EBITDA before special items amounted to DKK
93 million compared to DKK 101 million in Q3
2024, corresponding to EBITDA before special
items margins of 13% and 14%, respectively.
Depreciation and amortisation
Depreciation and amortisation in Q3 2025
amounted to DKK 40 million compared to DKK
48 million in Q3 2024. The decrease is driven by
the write-down of fixed assets in Q2 2025.
EBIT before special items
EBIT before special items amounted to DKK 53
million in Q3 2025 equal to Q3 2024,
corresponding to EBIT margins before special
items of 7% in both Q3 2025 and 2024.
Special items
Special items recognised in Q3 2025 relates to
restructuring costs of DKK 43 million (Q3 2024:
DKK 9 million). See note 8 Special items for
further information.
Net financials
Net financials amounted to an expense of DKK
10 million in Q3 2025, compared to an expense
of DKK 18 million in Q3 2024 due to lower NIBD
and a lower interest rate.
Result before tax
Result before tax amounted to DKK 0 million in
Q3 2025, compared to a profit of DKK 26 million
in Q3 2024.
Tax
Tax for Q3 2025 amounted to a net expense of
DKK 10 million compared to a net tax expense
of DKK 7 million in Q3 2024. The effective tax
rate is driven by tax losses in Germany not
being capitalised while other markets generate
taxable results.
Result for the period
Result for the period amounted to a loss of DKK
10 million and is attributable to H+H International
A/S’ shareholders by loss of DKK 12 million and
a profit to non-controlling interests by DKK 2
million compared to DKK 19 million in Q3 2024,
allocated with a profit of DKK 17 million and a
profit of DKK 2 million, respectively.
Comprehensive income
Other comprehensive income for Q3 2025
amounted to negative DKK 5 million compared
to negative DKK 16 million in Q3 2024. The
year-on-year development was mainly driven by
the development in actuarial gain and losses in
Q3 2024.
Revenue, external
Amounts in DKK million 2025 2024 2025 2024
Central Western Europe 255 272 768 785
United Kingdom 247 234 694 665
Poland 236 223 670 648
Total 738 729 2,132 2,098
Q3
Q1-Q3
Revenue
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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
Q3-2025
INCOME STATEMENT FOR THE FIRST NINE
MONTHS OF 2025
Revenue
Total revenue for the first nine months of 2025
amounts to DKK 2,132 million compared to DKK
2,098 million in the first nine months of 2024.
Organic growth was 1% in the first nine months
of 2025 compared to negative 1% for the first
nine months of 2024.
Gross profit before special items
Gross profit in the first nine months of 2025
amounted to DKK 480 million compared to DKK
415 million in 2024, corresponding to gross
margins of 23% and 20%, respectively.
EBITDA before special items
EBITDA before special items in the first nine
months of 2025 amounted to DKK 229 million
compared to DKK 168 million in 2024,
corresponding to EBITDA margins of 11% and
8%, respectively.
Depreciation and amortisation
Depreciation and amortisation in the first nine
months of 2025 amounted to DKK 136 million
compared to DKK 141 million in first nine
months of 2024.
EBIT before special items
EBIT for the first nine months of 2025 amounted
to DKK 93 million compared to DKK 27 million in
the first nine months of 2024, corresponding to
EBIT margins of 4% and 1%, respectively.
Special items
Special items recognised in the first nine months
of 2025 relates to write downs of property, plant
and equipment as part of the reorganisation of
the German business amounting to DKK 312
million, write down of Goodwill and other
intangible assets related to the CWE region of
DKK 300 million and related restructuring cost of
DKK 43 million, The special items recognised in
the first nine months of 2024 relates to
restructuring costs and settlement of the gas
contract. See note 8 Special items for further
information.
Net financials
Net financials amounted to an expense of DKK
36 million in first nine months 2025, compared to
an expense of DKK 56 million in first nine
months of 2024. The development is mainly
driven by lower NIBD and interest rates.
Result before tax
Result before tax for the first nine months of
2025 amounted to a loss of DKK 598 million,
compared to a loss of DKK 180 million in first
nine months of 2024 mainly driven by special
items.
Tax
Tax for the period amounted to DKK 39 million
compared to a net income of DKK 40 million in
first nine months of 2024.
Result for the period
Result for the first nine months of 2025
amounted to a loss of DKK 637 million,
compared to a loss of DKK 140 million in 2024.
Loss for the period is attributable to H+H
International A/S’ shareholders by DKK 638
million and a profit to non-controlling interest by
DKK 1 million compared to a loss of DKK 144
million and a profit of DKK 4 million,
respectively, for the first nine months of 2024.
Comprehensive income
Other comprehensive income for the first nine
months of 2025 was DKK 4 million compared to
DKK 8 million for the first nine months of 2024.
CASH FLOW FOR THE THIRD QUARTER
AND FIRST NINE MONTHS OF 2025
Operating activities
Cash flow from operating activities before
financial items and tax amounted to DKK 115
million in Q3 2025 compared to DKK 170 million
in Q3 2024. The positive cash flow in Q3 2025
was driven by a positive result and seasonal
development in working capital. Q3 2024 were
significant impacted by de-stocking initiatives.
Cash flow from operating activities in the first
nine months of 2025 was positive DKK 17
million compared to positive DKK 126 million in
the first nine months of 2024.
Investing activities
Cash flow from investing activities in Q3 2025
amounted to a cash out-flow of DKK 26 million
compared to a cash out-flow DKK 13 million in
Q3 2024.
Cash flow from investing activities in first nine
months of 2025 was a cash out-flow of DKK 63
million compared to DKK 73 million in the first
nine months of 2024.
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
Q3-2025
Financing activities
Cash flow from financing activities was negative
DKK 20 million in Q3 2025 compared to
negative DKK 32 million in Q3 2024.
Cash flow from financing activities was DKK 61
million in the first nine months of 2025 compared
to DKK 60 million in 2024.
BALANCE SHEET AT 30 SEPTEMBER 2025
On 30 September 2025, the balance sheet total
amounted to DKK 2,993 million compared to
DKK 3,435 million on 30 September 2024 mainly
driven by the impairment of assets in Q2 2025
partly offset by an increase in cash on hand.
Net interest-bearing debt
On 30 September 2025, net interest-bearing
debt, totalled DKK 779 million corresponding to
an increase of DKK 97 million since the
beginning of the year. The increase is primarily
driven by a negative working capital
development in the first nine months of 2025.
Equity
The consolidated equity decreased by DKK 629
million compared to 31 December 2024 and
decreased by DKK 525 million compared to 30
September 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 0%.
▪ EBIT before special items is expected to
be in the range of DKK 85 million to DKK
115 million.
ASSUMPTIONS FOR THE FINANCIAL
OUTLOOK
Key assumptions for the financial outlook for
2025
• The outlook does not assume any
market improvements in Germany.
• Price increases will not cover cost
inflation driven by the German market
situation.
Other assumptions
• CAPEX of around DKK 180 million.
• Special items of around DKK 50-70
million in Q3 and Q4 2025 which will be
paid in cash during 2025 and 2026.
FINANCIAL CALENDAR 2026
2025 Annual Report
3 Mar 2026
2025 Annual General Meeting
14 Apr 2026
Q1 2026 Interim Financial report
12 May 2026
H1 2026 Interim Financial report
11 Aug 2026
Q3 2026 Interim Financial report
10 Nov 2026
Equity
Q1-Q3 Q1-Q3
Amounts in DKK million 2025 2024
1 January 1,650 1,678
Result for the period (637) (142)
Actuarial gains/losses on pension
plans
(2) 7
Movement of derivative financial
instruments
7 (4)
Foreign exchange adjustments (1) 5
Share based payment 4 2
30 September 1,021 1,546
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
Q3-2025
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
Q3-2025
CONDENSED INCOME STATEMENT
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2025 2024 2025 2024 2024
Revenue 738 729 2,132 2,098 2,747
Cost of goods sold (559 ) (555 ) (1,652 ) (1,683 ) (2,168 )
Gross profit before special items 179 174 480 415 579
Sales costs (29 ) (29 ) (92 ) (92 ) (122 )
Administrative costs (55 ) (53 ) (154 ) (156 ) (209 )
Other operating income and costs, net (2 ) 9 (5 ) 1 2
EBITDA before special items 93 101 229 168 250
Depreciation, amortisation and impairments (40 ) (48 ) (136 ) (141 ) (187 )
EBIT before special items 53 53 93 27 63
Special items, net (43 ) (9 ) (655 ) (151 ) (22 )
EBIT 10 44 (562 ) (124 ) 41
Financial income 4 6 10 17 39
Financial expenses (14 ) (24 ) (46 ) (73 ) (109 )
Result before tax - 26 (598 ) (180 ) (29 )
Tax (10 ) (7 ) (39 ) 40 (21 )
Result for the period (10 ) 19 (637 ) (140 ) (50 )
Result for the period attributable to:
H+H International A/S' shareholders (12 ) 17 (638 ) (144 ) (53 )
Non-controlling interest 2 2 1 4 3
Result for the period (10 ) 19 (637 ) (140 ) (50 )
Earnings per share (EPS-Basic) (0.7 ) 1.0 (38.7 ) (8.7 ) (3.2 )
Diluted earnings per share (EPS-D) (0.7 ) 1.0 (38.7 ) (8.7 ) (3.2 )
Group
Q3 Q3 Q1-Q3 Q1-Q3 Full-year
Amounts in DKK million 2025 2024 2025 2024 2024
Result for the period (10 ) 19 (637 ) (140 ) (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 (8 ) (3 ) (1 ) 5 20
(5 ) - 6 1 17
Items that will not be reclassified subsequently to profit or loss:
Actuarial gains and losses - (20 ) (1 ) 9 13
Tax on actuarial gains and losses - 4 (1 ) (2 ) (5 )
Other comprehensive income after tax (5 ) (16 ) 4 8 25
Total comprehensive income for the period (15 ) 3 (633 ) (132 ) (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
Q3-2025
CONDENSED BALANCE SHEET
Group
30 September 31 December 30 September
Amounts in DKK million 2025 2024 2024
ASSETS
Non-current assets
Goodwill 173 422 422
Other intangible assets 158 220 227
Property, plant and equipment 1,421 1,716 1,696
Deferred tax assets 71 54 83
Financial assets 2 2 2
Total non-current assets 1,825 2,414 2,430
Current assets
Inventories 427 435 395
Receivables 279 162 286
Cash 462 462 249
Total current assets 1,168 1,059 930
Assets classified as held for sale - - 75
TOTAL ASSETS 2,993 3,473 3,435
EQUITY AND LIABILITIES
Equity
Share capital 165 165 165
Retained earnings 847 1,483 1,391
Other reserves (76 ) (82 ) (98 )
Equity attributable to H+H International A/S’ shareholders 936 1,566 1,458
Equity attributable to non-controlling interests 85 84 88
Total equity 1,021 1,650 1,546
Non-current liabilities
Pension obligations 17 21 24
Provisions 31 43 46
Deferred tax liability 35 36 44
Credit institutions 1,129 1,046 994
Deferred payments, acquisition of subsidiary 86 93 93
Lease liabilities 88 73 70
Total non-current liabilities 1,386 1,312 1,271
Current liabilities
Lease liabilities 24 25 26
Trade payables 241 272 274
Income tax 53 1 2
Deferred payment, acquisition of subsidiary 6 6 6
Provisions 56 26 69
Other payables 206 181 195
Total current liabilities 586 511 572
Total liabilities 1,972 1,823 1,843
Liabilities related to assets classified as held for sale - - 46
TOTAL EQUITY AND LIABILITIES 2,993 3,473 3,435
Net interest-bearing debt 779 682 887
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
Q3-2025
CONDENSED CASH FLOW STATEMENT
CONDENSED STATEMENT OF CHANGES IN EQUITY
Q3 Q3 Q1-Q3 Q1-Q3
Amounts in DKK million 2025 2024 2025 2024
Operating result (EBIT)
Depreciation, amortisation and impairment
Change in working capital
Change in provisions and pension contribution
Other non-cash adjustments
Operating activities before financial items and tax 115 170 53 208
Financial items, net
(8 ) (18 ) (30 ) (56 )
Income tax paid
(5 ) (17 ) (6 ) (26 )
Operating activities 102 135 17 126
Acquisition of property, plant and equipment and intangible assets (26 ) (13 ) (63 ) (73 )
Investing activities (26 ) (13 ) (63 ) (73 )
Bank overdraft and other debt (12 ) (21 ) 83 87
Payment of lease liabilities (8 ) (11 ) (22 ) (27 )
Financing activities (20 ) (32 ) 61 60
Total cash flow for the period 56 90 15 113
Cash and cash equivalents, opening 412 165 462 139
Foreign exchange adjustments of cash (6 ) (6 ) (15 ) (3 )
Cash and cash equivalents at 30 September 462 249 462 249
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 - - (638 ) (638 ) 1 (637 )
Other comprehensive income - 7 (1 ) (2 ) 4 - 4
Total comprehensive income - 7 (1 ) (640 ) (634 ) 1 (633 )
Share-based payment - - - 4 4 - 4
Total changes in equity in 2025 - 7 (1 ) (636 ) (630 ) 1 (629 )
Equity at 30 September 2025 165 (3 ) (73 ) 847 936 85 1,021
Equity at 1 January 2024 165 (7 ) (92 ) 1,526 1,592 86 1,678
Total changes in equity
Result for the period - - - (144 ) (144 ) 2 (142 )
Other comprehensive income - (4 ) 5 7 8 - 8
Total comprehensive income - (4 ) 5 (137 ) (136 ) 2 (134 )
Share-based payment - - - 2 2 - 2
Total changes in equity in 2024 - (4 ) 5 (135 ) (134 ) 2 (132 )
Equity at 30 September 2024 165 (11 ) (87 ) 1,391 1,458 88 1,546
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
Q3-2025
NOTES
1. Accounting policies
The interim financial report for the period 1 January to 30 September 2025 has been prepared in
accordance with the IAS 34 “Interim Financial Reporting” as adopted by the EU and additional Danish
disclosure requirements for the interim financial reports of listed companies. The application of IAS 34
means that the disclosures are more limited than in a complete annual report, but that the interim financial
report complies with the recognition and measurement principles in the International Financial Reporting
Standards (IFRS). The interim financial report has not been reviewed by H+H’s auditors.
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 September 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, see note 8.
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
Q3-2025
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 Q3 2025 amounted to
DKK 144 million compared to DKK 163 million in Q3 2024 and DKK 422 million for the first nine months of
2025 compared to DKK 461 million for the nine months of 2024.
8. Special items, net
As a result of the persistently low-volume environment in the German market and increasing competitive
pressure, H+H 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.
INCOME STATEMENT CLASSIFIED BY FUNCTION
Amounts in DKK million Q3 2025 Q3 2024 Q1-Q3 2025 Q1-Q3 2024
Revenue 738 729 2,132 2,098
Cost of goods sold (586) (585) (1,739) (1,772)
Gross profit including depreciation and amortisation 152 144 393 326
Sales cost (38) (40) (122) (126)
Administrative costs (59) (60) (173) (174)
Other operating income and costs (2) 9 (5) 1
EBIT before special items 53 53 93 27
Special items, net (43) (9) (655) (151)
EBIT 10 44 (562) (124)
Depreciation and amortisation comprise:
Depreciation of property, plant and equipment 31 37 96 101
Amortisation of intangible assets 9 11 40 40
Total 40 48 136 141
Depreciation, amortisation and impairment are allocated to:
Production costs 27 30 87 89
Sales costs 9 11 30 34
Administration costs 4 7 19 18
Total 40 48 136 141
Amounts in DKK million Q3 2025 Q3 2024 Q1-Q3 2025 Q1-Q3 2024
Central Western Europe 255 272 768 785
United Kingdom 247 234 694 665
Poland 236 223 670 648
738 729 2,132 2,098
Revenue
Amounts in DKK million Q3 2025 Q3 2024 Q1-Q3 2025 Q1-Q3 2024
Impairment of fixed assets, mothballed and closed down factories - - 272 -
Impairment of other idle assets related to closed factories - - 40 -
Impairment of goodwill, customer relations and other intangible assets - - 300 -
Restructuring costs 43 9 43 41
Inefficient part of gas hedges, including settlement - - - 110
Total 43 9 655 151
Impact of special items on EBIT
Cost of goods sold 23 - 63 116
Sales and administrative costs 20 9 20 35
Depreciation, amortisation and impairments - - 572 -
EBIT before special items 43 9 655 151
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
Q3-2025
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 potential buyers and historically experience.
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.
Moreover, the intangible assets related to our German market was reviewed for possible impairment
need, i.e. if the given asset do still have any use for H+H or whether the future cash flows coming for the
relevant CGU would cover the carrying value. Based on this an impairment of DKK 300 million were
recognised. The main classes of assets affected by this impairment relates to Goodwill (DKK 250 million),
Customer Relations (DKK 32 million) and Other Intangibles (DKK 18 million). See note 9 for further
details on the goodwill impairment test.
In addition, the aforementioned re-organisation of the German business was started in Q3 2025, and
consequently restructuring cost of DKK 43 million has been recognised as special items and comprise
directly associated costs to the German re-organisation including costs related to termination of
employees.
Special items in the first nine months of 2024 relates 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 41 million.
9. Impairment testing of goodwill and non-current assets
The Group performs impairment tests on intangibles, i.e. goodwill and customer contracts, annually and
whenever there is an indication that intangibles may 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 increasing competitive situation, Management assessed
that impairment indicators for the CWE region existed, and as such an impairment test were carried out.
The performance for Q3 2025 were in line with expectations and there has not been any material
changes to the forecast applied for the CWE impairment testing conducted as of 30 June 2025.
Therefore, Management has assessed there is no indication of additional impairment need as of 30
September 2025, and thus no impairment testing has been performed.
Impairment testing as of 30 June 2025
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 contracts 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 defined as the value in use calculated by using a discounted cash flow model
(‘DCF’).
Management 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 and an 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 compared to 31 December 2024 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 was estimated at 2.0% (31 December 2024: 2.0%).
Applied assumptions and carrying amounts for CWE are illustrated below.
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
Q3-2025
Sensitivity for changes in key assumptions
The results of the goodwill impairment tests are impacted by the 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 September 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.
11. Financial resources and cash flow
On 30 September 2025, net interest-bearing debt, totalled DKK 779 million corresponding to an increase
of DKK 97 million since the beginning of the year. The increase is primarily driven by a negative working
capital development in the first six months of 2025.
H+H’s financing is subject to usual financial covenants, which have been fulfilled in the first nine 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.
Amounts in DKK million
30 June 2025 31 December 2024
Carrying amount of intangible assets, property, plant and equipment excluding
goodwill
875
1260
Goodwill (after impairment) 150
399
Estimated average annual growth in revenue 2025-2029 (CAGR) 2.8%
9.3%
Estimated average annual growth / decrease in gross margin in percentage 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
Q3-2025
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 Q3 2025 Q3 2024 Q1-Q3 2025 Q1-Q3 2024
Current tax (25) (6) (60) (15)
Movement in deferred tax 15 (1) 21 55
Tax (10) (7) (39) 40