H+H International A/S | CVR-no: 49 61 98 12 | LEI: 3800GJODT6FV8QM841 | Lautrupsgade 7, 5
th
Floor. 2100 Copenhagen Ø
We are
Partners in
Wall Building
Annual Report 2025
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
communities.
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 2025 | 2In brief Sustainability statementBusiness and strategy Results Governance Financial statementsContents
Table of Contents
Management's review
In brief 4
Business and strategy 14
Results 23
Governance 33
Sustainability statement
General information 48
Environmental information 62
EU Taxonomy 69
Social information 75
Governance information 85
Financial statements
Consolidated financial statements 89
Notes to the consolidated financial statements 93
Parent company financial statements 122
Statements 131
Contact information 140
Business and strategy Page 14 Results Page 23-32Letter from the Chair and the CEO Page 9
Remuneration Report
Corporate Governance Statement
Other 2025 reports
H+H International | Annual Report 2025 | 3In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Management's review
In brief
H+H at a glance 5
Performance highlights 6
Five-year financial summary 7
Five-year sustainability summary 8
Letter from the Chair and the CEO 9
Equity Story 12
Financial outlook 2026 13
H+H International | Annual Report 2025 | 4In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
32%
32%
36%
Aircrete Factories
Calcium Silicate Factories
Sales and Administration
Headquarter
H+H at a glance
H+H’s core activity is the manufacture and sale of
wall-building materials. The main product lines are
aircrete blocks and calcium silicate units, which
are used in the residential new-build segment. We
leverage industry insights and customer expertise
to solve challenges and provide better homes for
our communities.
People
1,338
Based across Northern Europe we employ
over 1,300 people, of whom around 70%
work in our plants.
Active plants
25
In 2025, we closed two of our mothballed
plants in Germany as part of a strategy
change. Across all active plants we produced
a total of 3.1 million cubic meters of wall-
building materials in 2025.
Central Western Europe
The United Kingdom
Poland
Markets
Share of revenue
Revenue (DKKm)
2,743
In 2025, we generated total revenue of DKK
2,743 million and organic growth of 0%.
H+H International | Annual Report 2025 | 5In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Performance highlights
SustainabilityFinancial
Gross margin (bsi)
DKKm
EBIT before special items (bsi)
DKKm
Financial gearing
DKKm
0.9
In 2025, we achieved a LTIF rate
of 0.9 on a par with last year.
Organic growth
Percent
EBITDA before special items (bsi)
DKKm
Free cash flow
DKKm
Climate – Reduction in scope
1 and 2 emissions per m
3
Safety – Lost time incidents
frequency
(LTIF)
3%
We achieved 3% lower scope 1 and
2 emissions per m
3
compared to
last year, well aligned and on track
with our Science Based targets.
0%
Sales volume fell by 1% as a result of
the persistently low-volume environ-
ment in the German market offset by
Poland and the UK.
291
In 2025, EBITDA before special items
was DKK 291 million compared to
DKK 250 million last year, corre-
sponding to EBITDA margins of 11%
and 9% respectively.
-61
Free cash flow was negative DKK 61
million, compared to positive DKK 219
million last year. The development
in cash flows mainly relates to stock
build-up and planned investments.
22%
Gross profit was DKK 615 million
compared to DKK 579 million in
2024, corresponding to margins
of 22% and 21% respectively.
112
EBIT before special items amounted to
DKK 112 million compared to DKK 63
million in 2024, corresponding to EBIT
margins of 4% and 2%, respectively.
2.8x
Net interest-bearing debt was DKK 802
million as of end-2025 compared to DKK
682 million last year.
See more about our sustainability
performance on page 8
H+H International | Annual Report 2025 | 6In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Five-year financial summary
Income statement (DKK million) 2025 2024 2023 2022 2021
Revenue 2,743 2,747 2,672 3,604 3,020
Gross profit bsi 615 579 564 1,020 905
SG&A 318 331 346 392 329
EBITDA bsi 291 250 244 657 591
EBITDA 194 228 58 615 567
EBIT bsi 112 63 57 455 408
Special items (669) (22) (287) (31) -
EBIT (557) 41 (230) 413 377
Result before tax (604) (29) (283) 398 356
Result after tax for the year (665) (50) (246) 317 321
Balance sheet (DKK million) 2025 2024 2023 2022 2021
Assets 2,653 3,473 3,454 3,572 3,400
Invested capital
1
2,190 2,569 2,855 2,555 2,102
CAPEX
2
185 175 201 298 226
Acquisition and divestment of enterprises - - - - 238
Net working capital 241 144 359 242 65
Equity 1,003 1,650 1,678 1,938 1,814
Net interest-bearing debt (NIBD) 802 682 887 492 350
Cash flow (DKK million) 2025 2024 2023 2022 2021
Cash flow from operating activities 71 145 (209) 316 454
Cash flow from investing activities (132) 74 (137) (255) (427)
Cash flow from financing activities (235) 103 131 (80) (25)
Free cash flow (61) 219 (346) 61 27
Financial ratios and others 2025 2024 2023 2022 2021
Sales volume (thousand m
3
) 2,929 2,967 2,745 4,187 4,326
Organic growth 0% 0% (25%) 14% 13%
Gross margin bsi 22% 21% 21% 28% 30%
EBITDA margin bsi 11% 9% 9% 18% 20%
EBITDA margin 7% 9% 2% 17% 19%
EBIT margin bsi 4% 2% 2% 13% 14%
EBIT margin (20%) 1% (9%) 11% 12%
Return on invested capital (ROIC)
1
5% 2% 2% 18% 19%
Solvency ratio 37% 45% 46% 52% 50%
Financial gearing 2.8x 2.7x 3.6x 0.7x 0.6x
Previously, goodwill was excluded from invested capital in financial reporting; however, it is now included in the calculation. Comparative figures
have been restated accordingly.
CAPEX includes PPE and intangible assets additions incl. IFRS 16 leases. Comparative figures have been restated accordingly.
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 2025 | 7In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Five-year sustainability summary
Environmental data Unit of measure 2025 2024 2023¹ 2022¹ 2021¹
CO
2
e scope 1 Tonnes 92,545 81,884 *93,602 142,796 132,345
CO
2
e scope 2 - market based Tonnes 6,192 6,885 *15,198 33,454 59,461
CO
2
e scope 2 - location based Tonnes 26,304 25,522 29,369 45,702
CO
2
e scope 3 Tonnes 453,614 394,435 442,582 688,192 673,554
Total GHG emissions - market based Tonnes 552,351 483,205 551,381 864,442 865,360
CO
2
e scope 1 kg/m
3
30 30 31 33 31
CO
2
e scope 2 - market-based kg/m
3
2 3 5 8 14
CO
2
e scope 3 kg/m
3
147 144 146 157 157
Total GHG emissions per m
3
kg/m
3
179 177 182 198 202
Total GHG emission per net revenue Tonnes/Mil. DKK 201 176 206 240 287
Energy consumption GJ 1,696,258 1,501,325 1,749,942 2,487,149 2,380,949
Energy consumption MWh 471,183 417,035 486,095 690,875 661,375
Natural gas MWh 298,311 254,804 315,096 418,262
Coal MWh 106,653 98,894 92,588 146,867
Oil MWh 1,573 1,754 12,458 26,253
Fossil steam and electricity MWh 16,540 17,929 41,109 65,722
Renewable electricity MWh 48,107 43,653 24,843 33,770
Percentage renewable % 10% 10% 8% 5% 0%
Total energy per m
3
MJ 548 549 575 567 554
Energy intensity per net revenue MWh/Mil. DKK 172 152 182 192 219
Production volume Million m
3
3.1 2.7 3.0 4.4 4.3
* ESG figure subject to limited assurance in 2023
¹ Not covered by the Independent Auditor’s limited assurance report, unless seperately indicated by a *
Social data Unit of measure 2025 2024 2023¹ 2022¹ 2021¹
Employees Headcount 1,338 1,337 1,355 1,739 1,633
Gender diversity % 15% 17% 18% 16% 16%
Gender diversity, office workers % 49% 46% 45% 41% 47%
Gender pay gap (Average) % -17% -17% -6% 7% 10%
CEO Pay Ratio Times 33 34 29 32 37
Employee turnover ratio % 21% 22% 40% 15% 13%
Employee turnover Headcount 284 280 605 267 206
Fatalities Headcount 0 0 0 0 0
Lost-time Incident frequency (LTIF)
Incidents per mil.
hours worked 0.9 0.9 *3.4 3.6 5.5
Total recordable incidents Number of 10 7 18 77 103
Total recordable contractor incidents Number of 0 0 0 3 3
Total recordable incident rate (TRIR)
Incidents per mil.
hours worked 4 3 7 25 35
Recordable work-related ill health Number of 0 0 0
Gender diversity, Board % 40% 29% 29% 33% 17%
Gender diversity, Top management % 0% 0% 0%
H+H International | Annual Report 2025 | 8In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
A stronger platform
for the market
rebound
Letter from the Chair and the CEO
The European construction markets remained
subdued throughout 2025. Geopolitical
uncertainty and low GDP growth continued to
weigh on consumer confidence. Residential
new build activity stayed substantially below
historical peaks across our regions. Under these
circumstances our focus is clear: strengthen what
we can control — execution, cost management,
and commercial discipline.
In 2025, we made difficult but necessary decisions that negatively
impacted our financial results. The restructuring of our German
operations significantly lowered our results, mainly due to non-cash
impairments from plant closures and intangible assets. Our perfor-
mance in Germany remains unsatisfactory, and we have taken steps
to align our footprint and cost structure with market conditions.
While volumes and
absolute earnings have
not yet returned to the
levels seen in 2021 and
2022, margins in the
UK improved over last
year and came in very
strong in Poland.
Although we faced ongoing difficulties in the markets throughout
2025, which led to zero percent organic growth, our operational
performance has improved highlighting the effectiveness of our
continuous improvement efforts. Consequently, we are delighted
with our earnings in Poland, the UK, and Switzerland, all of which
have exceeded the 10% EBIT mark.
Poland and the UK delivering strong results
Conditions in Poland and the UK remained far from stable in 2025.
Nevertheless, we achieved further improvements in earnings in
both markets. While volumes and absolute earnings have not yet
returned to the levels achieved in 2021 and 2022, margins in the UK
improved over last year and came in very strong in Poland.
A key driver behind this progress is HOME – the H+H Operating
Model of Excellence. HOME is not a short-term initiative. It is the
way we run our operations: improving utilisation, strengthening
reliability, and continuously sharpening our cost base and perfor-
mance culture. Over the last three years, we have restructured our
H+H International | Annual Report 2025 | 9In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
plant network to concentrate volumes on fewer, more efficient
sites. This has included plant closures, reducing fixed costs,
and a more disciplined commercial approach to pricing and
product mix.
Importantly, these improvements are structural and result
from actions within our control, rather than being temporary
measures in response to depressed markets. Collectively, our
actions have created a more resilient operating platform. We
are building a business that can perform satisfactorily through
market cycles rather than one that depends on market
tailwinds.
A sharper regional focus in Germany
Germany remains our primary challenge, as building activi-
ties have not improved for three years, resulting in high over-
capacity and fierce competition that continue to compress
margins and weigh heavily on Group earnings. Given the
absence of a viable path to establish a strong, nationwide pres-
ence in the mid-term, we have shifted our focus to developing
profitable regional positions, supported by a significant impair-
ment programme.
While this restructuring has led to a more robust company
structure, the German market will remain difficult. Therefore,
our ongoing priorities are to steadily enhance our regional posi-
tions while remaining open to opportunities, whether through
potential divestments to better-suited owners or forming joint
ventures with others as we recognise that market consolidation
Miguel Kohlmann
Chair
Jörg Brinkmann
CEO
H+H International | Annual Report 2025 | 10In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
is both necessary and beneficial at this time. This approach aligns
with our commitment to financial discipline and safeguarding our
cash position.
Maintaining financial discipline
As we do not anticipate a significant market upturn in the near term,
we will continue to manage the business with rigorous financial
discipline and a strong focus on cash management. HOME unlocks
production capacity and performance improvements without heavy
capital expenditure, and going forward, we will continue to prioritise
investments with clear returns and short payback profiles.
As a result of the German restructuring carried out in 2025, we
now have assets classified as held for sale, and we expect these to
contribute positively to cash flow in 2026. Most of these assets relate
to non-core and surplus sites, and their divestment supports our
strategy of simplifying the business, sharpening our focus on core
activities, and reducing net debt.
Looking ahead, our priority is on execution, further strengthening
our operating platform and protecting our cash position. With the
restructuring in Germany now largely behind us, we are positioned
to drive organic improvements without major structural changes
in the coming year. We are realistic about the pace of recovery but
Miguel Kohlmann
Chair
Jörg Brinkmann
CEO
Customers increasingly
seek solutions that
support the green
transition while also
delivering efficiency
— both during the
construction phase
and over the lifespan
of buildings. This gives
us confidence that
our portfolio is well
positioned to meet
future requirements.
confident that the actions taken over recent years have created the
base for materially improved earnings quality and resilience of H+H.
When markets rebound, we will be well positioned to deliver attrac-
tive returns. The demand for affordable housing is a structural
need across Europe, and our products help to enable cost-efficient,
energy-efficient and sustainable construction. Customers increas-
ingly seek solutions that support the green transition while also
delivering efficiency — both during the construction phase and over
the lifespan of buildings. This gives us confidence that our portfolio
is well positioned to meet future requirements. Our ZeroCarbon
roadmap supports this direction and strengthens our relevance for
customers facing increasing requirements and expectations.
Finally, we would like to thank our customers, suppliers, partners,
and shareholders for their continued trust. We would also like to
thank our employees across the Group for their commitment and
dedication during a very demanding period. We are confident that
we are entering 2026 with a clearer structure, stronger foundations,
and a renewed focus on delivering long-term value.
H+H International | Annual Report 2025 | 11In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
1 432
Equity Story
We have consolidated operations to larger sites, reducing costs and improving efficiency. With strong market
positions across our footprint and the capacity to expand, we are ready to benefit from increased volumes and
improved margins.
Leading market
positions
H+H holds a leading position across most of our
key markets, supported by high entry barriers
and long-standing customer relationships.
We are the number one provider in the UK and
number two in Poland. In Germany, we hold
strong positions in selected regions and serve
customers through a more targeted footprint.
Housing demand
waiting to be
unlocked
There is a significant shortage of new homes
in our main markets, with construction levels
falling short of government targets. As economic
conditions stabilise and new policies are
implemented, we expect demand to increase.
H+H is positioned to benefit from this growth
with scalable, cost-effective, and energy-efficient
solutions tailored for residential developments.
Material of choice:
Products for efficient
housing solutions
H+H delivers modern wall building solutions
that meet next generation housing standards,
providing structures that are reliable, highly
insulated, and affordable. Our limestone-based
products offer strong insulation performance
and a structurally lower lifecycle footprint,
keeping us ahead of tightening regulation and
reinforcing our competitive advantage.
Profitability potential
from market recovery and
greater capacity
We have consolidated production into larger,
more efficient sites, reducing costs, improving
reliability, and increasing output with fewer
plants. Our business is now more agile and
scalable, and as demand recovers, we are well
positioned to benefit from improvements in
efficiency and scale.
H+H International | Annual Report 2025 | 12In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial outlook 2026
Organic growth
-5% - 0%
(2025: 0%) Revenue measured in local currencies
is expected to be in the range -5% to 0%.
EBIT before special items
50 - 100
(2025: DKKm 112) EBIT before special items is
expected to be in the range of DKK 50 to 100 million.
Forward looking statements
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 materially from the expectations
expressed in this document. Such factors include, but are not limited to,
general economic and business conditions, exchange rate and interest
rate fluctuations, the demand for our products and political policies,
incentives and regulatory frameworks.
The year began with unusually severe winter
weather, which significantly reduced sales
across all markets and is expected to nega-
tively impact EBIT before special items by
around DKK 70 million compared to last year.
We expect only a limited recovery of the lost
volumes during the remainder of the year. For
the rest of the year, it is anticipated that the
markets in the UK and Poland will continue
to perform at similar level as in 2025, with
activity levels remaining below the political
aspirations to build at rates higher than the
formation of new households unable to close
the structural housing gaps. Should market
demand lead to a full catch-up, our inventory
levels and production flexibility can support
such a demand profile.
Overall organic revenue growth is expected
to be in the range of -5% to 0%. Price devel-
opments are expected to broadly follow input
costs, while volumes are anticipated to reflect
both the weather-related start to the year and
the continued muted market environment.
EBIT before special items is expected to be
in the range of DKK 50–100 million, driven by
disciplined cost management and expected
benefits of DKK 40 million from the German
restructuring initiated in 2025. The guidance
assumes stable FX rates, continued progress
on the new regional setup in Germany, and no
major disruptions in energy markets.
Key assumptions
• The year began with unusually severe
winter weather, which significantly reduced
sales across all markets and is expected
to negatively impact EBIT before special
items around DKK 70 million compared to
last year. We only expect a limited recovery
of the lost volumes during the remainder of
the year.
• In the remainder of the year the markets in
the UK and Poland continue to perform at
similar level as in 2025.
• Expected benefits of DKK 40 million from
German restructuring initiated in 2025.
• CAPEX for 2026 is expected to be DKK 100
– 120 million.
• Free cash flow expected to be positive
including contribution from asset sales.
• The outlook assumes no major changes to
macroeconomic or geopolitical conditions,
and FX assumptions are based on February
2026 actuals combined with forward rates
for the next ten months.
H+H International | Annual Report 2025 | 13In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Business
and strategy
Our industry 15
Our products 16
Business model 17
Strategic focus areas and progress 18
H+H International | Annual Report 2025 | 14In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Our
industry
We are a leading European
provider of wall-building solutions
and materials, partnering
with contractors, developers,
volume housebuilders, and
builders’ merchants. Our sector
is highly cyclical, shaped by
macroeconomic trends and
government policies supporting
house building. The markets
in which we operate face a
pronounced housing shortage,
increasing demand for efficient
and sustainable construction
solutions.
An industry exposed
to cyclicality
The industry is affected by the general
economic environment, such as interest rates,
which influence borrowing costs for both devel-
opers and buyers, and overall economic growth,
which impacts the demand for new housing.
Population growth, urbanisation, and changes in
household formation further drive the need for
new homes. In addition, government policies,
incentives, and regulatory frameworks deter-
mine the pace and direction of construction
activity across our regions.
In recent years, weaker market conditions have
resulted in plant closures, reduced production,
and workforce downsizing, leading to decreased
capacity across the industry. As conditions
begin to stabilise, these contractions may lead
to supply constraints when demand rebounds.
Businesses with resilient operations and opti-
mised production will be best placed to capture
future growth opportunities.
The urgent need
for new homes
Despite broad political recognition, a
significant housing shortage continues to
affect our markets. Governments consistently
miss their own annual targets – 300,000
new homes in the UK and 400,000 in
Germany. Years of under-building, rising
construction costs, strict planning rules and
demographic changes have led to severe
shortages. In the UK, this means millions are
waiting for homes, with higher prices and
homelessness increasing. Germany faces its
worst crisis in 20 years, with a deficit of over
800,000 apartments and 9.5 million people
in overcrowded housing, mainly in cities.
Vulnerable groups, especially low-income
families, are hardest hit by rising rents and
growing inequality. Despite ambitious targets
and proposed reforms, progress is slow.
Tackling these shortages requires sustained
investment, more market capacity and
targeted policies.
Carbon-friendly
wall-building solutions
In supporting the sustainable development of
housing, the wall-building industry faces increas-
ingly stringent requirements regarding carbon
emissions. The growing emphasis on life cycle
analysis – or whole life carbon assessment – is
advantageous for autoclaved aerated concrete
(AAC) products and calcium silicate units (CSU),
whether this is driven by customer expectations
or legislation across our markets.
The European Autoclaved Aerated Concrete
Association (EAACA) has demonstrated that,
through the sector’s decarbonisation strategy
and the carbon capture capabilities of lime-
stone-based products such as AAC and CSU, it
is possible to manufacture blocks that absorb
more carbon over their lifetime than is emitted
during production. This affirms that our products
are – and will continue to be – integral to creating
sustainable housing.
H+H International | Annual Report 2025 | 15In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
CO
2
Our products
H+H's core activities
are the production
and sale of autoclaved
aerated concrete (AAC)
and calcium silicate
units (CSU).
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
Long-lasting durability, superior
insulation and a reduced carbon
footprint through recarbonisation
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
Multi-element solutions
to shorten construction
times
Calcium Silicate
Units (CSU), used for
multifamily urban housing
Planning Tool to
optimise the building
process
Longevity
Affordability
Safety
Standardisation
Digitalisation
H+H International | Annual Report 2025 | 16In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
• Mineral materials mainly sand,
water and lime
• Cement added for AAC products
• Strong plant network with
access to attractive markets
• Lean manufacturing process to
improve efficiency and eliminate
waste
• Targeted capital investments
improve reliability and quality
across the production platform
• Continuous improvements to
improve 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
• Wall-building solutions that
are easy and fast to build with,
cost-efficient and can last for
centuries
• Fire-resistant, rot- and mould-
proof products ensuring a safe
environment
• Durability, insulation and a
reduced carbon footprint
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 2025 | 17In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Indexed development of building permits across our markets
The United Kingdom
Poland
Germany
40
60
80
100
120
14 0
2021 2022 2023 2024 2025
2021 = index 100
76
78
58
Strategic focus
areas and progress
In the current stage of the cycle, we have shifted
our focus from growth to stabilising the busi-
ness. Our production platform has been carefully
reviewed and realigned to suit the current market
conditions, with an increased emphasis on cash
flow. Adaptation to the current business environ-
ment is driven by a strong focus on operational
excellence and cash generation, ensuring H+H is
not only resilient in the present environment but
also well placed to capitalise on a market recovery
and drive future profitability.
Structural margin improvements
Structural margin improvement remains a funda-
mental pillar of our value creation model. Contin-
uous Improvement efforts have delivered meas-
urable progress in the past —reducing waste,
improving energy efficiency, optimising raw mate-
rials consumption, and increasing factory uptime
across the network. What began as a plant-by-
plant optimisation effort has, since 2023, evolved
into a fully integrated, Group-wide performance
system under HOME – the H+H Operating Model
of Excellence. This shift marks a step change:
At H+H, our commitment to being a trusted partner in wall building is central
to our approach and the value we deliver. We work closely with our customers,
developers, housebuilders, and construction professionals - who rely on us
not only for quality products, but also for our commitment to timely delivery,
minimising on-site waste, and supporting efficient construction workflows.
By reducing complexity, we help our customers achieve the best possible
outcomes throughout the entire wall-building process.
from local initiatives to a unified way of working
that embeds operational discipline, standardised
processes, and structured capability building at
all levels of our production organisation.
HOME is the key driver of structural margin
enhancement. It allows us to unlock capacity
without heavy capital expenditure. The upgrade
of our Puławy plant in Poland illustrates this
approach well, as targeted improvements
increased output by 20% with modest investment
and an attractive payback.
Similar initiatives across the network have the
ability to bring up to 30% additional capacity over
time. We will continue to prioritise projects with
demonstrable returns and attractive payback
periods, deploying capital where market demand
justifies further upgrades. The aggregate cost of
achieving 30% network-wide capacity increase is
comparable to the investment required for 1-2 new
facilities, underscoring the efficiency and value of
this approach.
H+H International | Annual Report 2025 | 18In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
1,000
1,200
1,400
1,600
1,800
2,000
2021 2022 2023 2024 2025
Headcounts
1,633
1,739
1,355
1,337
1,338
Focused regional model in Germany
Germany has undergone the most significant trans-
formation within H+H in recent years. Faced with a
prolonged low-volume market situation, historically
low demand for building materials, and a cost base
built for a national footprint, our German business
required a fundamental reset. In 2025, we initiated
a strategic review and took decisive steps to move
from a nationwide presence to a customer proxi-
mate model focused on building strong positions
within areas close to our plants.
The reorganisation established new regional
profit centres and shifted focus away from the
ambition of nationwide coverage. As a result, we
have initiated the sale of non-core and obsolete
sites—actions that immediately improve cash
flow and drive operational focus. The German
network is now designed around regions where we
have the most optimised logistics network, solid
customer relationships, and the ability to compete
effectively.
The restructuring has already reduced complexity
and improved visibility on performance, enabling
the German team to focus on core regions,
pricing discipline, and service reliability. Since
2023, our restructuring efforts in Germany have
resulted in cost savings of close to DKK 200
million, underscoring both the necessity and our
ongoing commitment to enhancing operational
efficiency and unlocking greater margin poten-
tial. Our approach in Germany is now centred on
disciplined capital deployment, selective regional
growth, and prioritising profitability and cash
generation over scale. Nevertheless, operating
in Germany continues to pose significant chal-
lenges. Building permits are recovering, which is
a positive sign for the industry, albeit from a low
base. However, there is usually a delay before new
construction is completed, so our focus remains
on strengthening our presence in key regions and
staying open to opportunities, including asset
divestments or joint ventures, as we recognise
that market consolidation is advantageous.
Key strategic priorities for 2026
Across the Group, we continue to prioritise cost
discipline, cash generation, and operational
leverage. Investments are targeted, return driven,
and aligned with our ambition to reduce net debt
and improve margins.
In both Poland and the UK markets continue to
deliver robust commercial performance and
leading market positions. In the UK, we have
strengthened our position by reopening our
factory in Pollington, northern England. Likewise,
our Polish business has entered 2026 on a firm
commercial footing, continuing to benefit from
underlying demand. This provides a solid platform
for further improvements without the need for
fundamental operational changes. By contrast,
our focus in Germany remains on addressing
structural challenges and aligning performance
with the rest of the Group. Excluding the German
business, the remainder of the Group achieved a
double-digit EBIT margin.
In line with our focus on financial discipline and
cash protection, the restructuring has resulted
in a number of assets being classified as held for
sale. These divestments are expected to generate
a positive cash flow contribution in 2026 and
support our strategy of simplifying the business,
sharpening our focus on core activities, and
reducing net debt. Expanding or optimising our
existing production facilities to increase capacity
will remain a strategic priority, provided market
demand supports the investments in further
upgrades.
H+H International | Annual Report 2025 | 19In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
HOME outlines the minimum
operating standards expected
across our sites.
All employees – regardless of role – play a
critical part in delivering our performance goals.
HOME: Running the Business
HOME:
H+H Operating
Model of Excellence
HOME is H+H’s Operating Model of Excellence and
forms the backbone of how we run, improve, and
scale our plant network. Developed to strengthen
long-term competitiveness in a cyclical industry,
HOME provides a consistent way of working across
all sites, enabling us to respond to fluctuating demand
while maintaining safety, quality and efficiency.
HOME is designed to maximise plant uptime, opti-
mise processes, reduce waste, and unlock addi-
tional capacity. By applying the same systems,
metrics, and improvement tools across all plants,
we can benchmark performance, share best prac-
tices, and build strong operational discipline.
Building a flexible production platform
Recent market volatility has reinforced the need
for a flexible production setup. Historically, our
network was designed for high output, where higher
volumes improved utilisation and margins. In 2025,
fluctuating conditions required capacity adjust-
ments at selected plants. While such changes incur
short-term costs, they are essential for competitive-
ness. HOME supports this flexibility through robust
daily routines, transparent performance manage-
ment, and consistent decision-making.
Unlocking extra capacity
through excellence
Our plant network holds significant
untapped capacity achievable through
improved uptime, better asset utilisation
and targeted de-bottlenecking. This does
not require major extensions or green-
field investments but is driven by lean
manufacturing, recipe optimisation and
selective equipment upgrades.
In 2025, we initiated a focused upgrade of
our AAC plant in Puławy, Poland demon-
strating the effectiveness of HOME. The
project addressed three bottlenecks:
extending the autoclave line, expanding
the curing chamber and redesigning
internal transport. These improvements
deliver 20% more capacity in this plant
with relatively modest capital expendi-
ture. The Puławy project exemplifies the
HOME approach: targeted investments
that are delivering efficiency gains,
lowering indirect production costs and
increasing output.
A standardised way of working
HOME establishes a unified operating
system across all plants, including:
• A shared set of critical metrics for
transparency and improvement
• A daily operational model
engaging all employees
• A portfolio of standard work for
operators and leaders
• Visual management to drive
continuous improvement
• A toolkit for structured problem-solving
and step-change improvements
Over the past two years, we have reshaped
our production platform to operate effectively
at lower volumes. This included consolidating
activity into larger, more efficient plants and
reducing complexity across the network. HOME
enables this transition by standardising opera-
tions and delivering economies of scale. As rollout
continues, we expect further gains in uptime,
productivity, and indirect cost per unit.
Supporting our sustainability ambitions
HOME is central to achieving our sustainability
goals. By improving planning, reducing downtime,
and minimising waste, HOME enhances energy
efficiency and lowers our carbon footprint. In
2025, we reduced scope 1+2 emissions further
and progressed towards our 2030 target of
cutting CO
2
emissions per block by 50%. Future
opportunities include hydrogen integration and
alternative transport fuels, enabled by stable
production flows under HOME.
Structured
Problem Solving
Gemba
Walks
Visual
Factory
Standard
Work
Control
& Review
Standard KPIs
& Reporting
H+H International | Annual Report 2025 | 20In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
0
40
80
120
160
200
240
2019 2020 2021 2022 2023 2024 2025
2050
0
Scope 1
Scope 2
Scope 3
Direct emissions
- mainly fuel
combustion
Indirect emissions
- mainly electricity and steam
Other indirect emissions
– mainly from raw materials
cement and lime
H+H commits
to reducing absolute
scope 1 and 2 greenhouse
gas emissions by
H+H commits
to reducing
scope 3 greenhouse
gas emissions by
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
Scope 1+2
Scope 3
Our business model and strategy actively
support the green transition by reducing
carbon emissions in line with validated
Science Based Targets. From a full life-
cycle perspective, we aim to achieve
net-zero emissions for our products by
2050—and we believe our approach will
make this possible.
As part of a wider supply chain, our own
manufacturing accounts for a minor share
of embodied carbon. The majority comes
from raw materials such as cement and
lime. That’s why we collaborate with our
suppliers to support their decarbonization
efforts. While change takes time, we are
committed to achieving key milestones on
the journey to reaching our targets.
Our vision for green transition and
reducing our carbon emissions
is rooted in a full life-cycle
assessment of our products. This
approach evaluates environmental
impact across the entire lifecycle
— from production to end-of-life.
Goal:
Net-zero
emissions
Mission Zero:
Zero Carbon
- SBM-1 | E1-1
Annual CO
2
kg Emissions per m
3
(Combined Scopes 1, 2 & 3)
Direct and indirect emissions
46% 22% 2050
In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International | Annual Report 2025 | 21
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
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 and CSU products act like a dried-out
sponge – absorbing CO
2
from the atmosphere.
With the improvement in sustainable produc-
tion and carbon capture and storage (CCS), we
will be able to produce blocks with a negative
CO
2
footprint 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)
2025 – Present
Since our starting point we have improved
our emissions, reducing the amount by
approximately 30 kg through renewable
electricity and more efficient production.
Blocks produced in 2025 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
materials.
Whole life emissions ~ negative 50 kg (net)
Mission Zero:
Zero Carbon
- SBM-1 | E1-1
H+H International | Annual Report 2025 | 22In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Results
Responding to market realities 24
Full year financial review 26
Q4 2025 results 28
Geographical footprint 29
H+H International | Annual Report 2025 | 23In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Responding to
market realities
In 2025, we made difficult but necessary deci-
sions to adapt our German business to the
challenging macroeconomic environment.
These changes were made with the intention of
becoming cash positive again and laying the foun-
dation for a more robust business in Germany.
Across our regions, volumes are currently more
than 30% lower than in 2021, and as such, we
must carefully balance our long-term ambitions
with the need to deliver solid short-term results
and maintain a healthy cash flow.
The operational and financial leverage built into
our network offers substantial upside potential
once demand recovers. The key drivers of value
creation—margin focus, disciplined pricing, and
improved production efficiency via our HOME
programme—are embedded across the Group.
Financial performance
We saw a flat top-line development, as demand
across our core markets was slightly lower than
last year. Margin expansion remained a priority,
driven by passing through inflation in Poland and
the UK and by our focus on operational effi-
ciency. This contributed to improved profitability
from the underlying business. An impairment of
DKK 612 million was recognised based on deteri-
oration of the German business.
Cash flow was a net outflow, because stock
build-up was prioritised to support the antici-
pated growth in the UK and the planned plant
upgrade in Pulawy, Poland.
Business performance in Germany deteriorated
further during the first half of 2025, and
consequently, a transformation programme
was initiated. The associated restructuring
programme has reduced our cost and asset
base to reflect the current market conditions.
To implement the restructuring, DKK 57 million
was recognised as special items for severance
pay and other one-off costs in 2025. This
amount is lower than the original expected:
a deliberate decision to keep core functions
Bjarne Pedersen, CFO
available to coordinate tasks to allow the
regional profit centres to focus on the core
business. The expected payback period on the
restructuring costs is around 18 months. As
part of the asset review, we permanently closed
previously mothballed plants and impaired them
accordingly, including impairment of goodwill.
With the restructuring now complete, we enter
2026 with a streamlined balance sheet and a
stronger regional focus in Germany.
Follow-up on financial outlook
During 2025, we adjusted our outlook for organic
revenue growth and EBIT before special items
twice. Both adjustments were driven by market
developments. In July, we revised our guidance
for organic growth to approximately 4% from the
previous range of 5% to 10%. Additionally, our
EBIT bsi was adjusted to DKK 100–150 million
from DKK 120–180 million, due to low market
activity in Germany, intensified competition and
pricing pressure. In October, organic growth was
revised to around 0% from the previous estimate
H+H International | Annual Report 2025 | 24In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
EBIT margin before special items
main priority is to direct free cash flow towards
debt repayment, with the aim of reducing our
gearing to a target range of 1–2 times net inter-
est-bearing debt to EBITDA before special items.
Long-term financial targets
Given the ongoing focus of our operations in
Germany, as well as the prevailing market uncer-
tainty and the need for strategic flexibility, we
will no longer provide specific long-term financial
targets. Instead, we will focus on near-term guid-
ance aligned with the visibility we have in today’s
environment. Our ambition remains to deliver
higher margins at any point in the economic cycle
than in the past. The business is cyclical, and we
are awaiting a broader market recovery to return
to historical performance levels. With continued
investments in HOME, we are well positioned
to benefit from a market rebound. We are also
committed to transparent communication with
of 4%, and the EBIT bsi range was adjusted to
DKK 85–115 million from DKK 100–150 million,
reflecting weaker-than-anticipated market condi-
tions in the UK.
Capital allocation and risk management
We have kept our focus on risk management
during the year, as this is key to navigate market
volatility without sacrificing short-term growth
opportunities or the potentials in a broader
market recovery. The group fulfilled all financial
covenants in 2025 and in February 2026, an
amendment was made to the group's banking
agreement reflecting the weather driven
market conditions. In addition, the asset sales
programme is expected to generate between DKK
70 - 100 million of cash during 2026. This provides
us with sufficient flexibility to navigate a volatile
environment while supporting essential invest-
ments in our HOME programme. At present, our
our stakeholders, providing timely updates and
clear guidance as market conditions evolve. As
market dynamics improve, we are confident
that our strengthened position will enable us to
capture new growth opportunities and deliver
value creation over the medium term.
2021 2022 2023 2024 2025
112
63
57
2% 2%
4%
455
13%
408
14%
2021 2022 2023 2024 2025
19%
18%
2%
2%
5%
Return on invested capital (ROIC)
EBIT before special items
Original guidance
(4 mar 2025)
Realised
(3 mar 2026)
Revised
(31 oct 2025)
Revised
(29 jul 2025)
Organic growth
5%-10%
EBIT
1
(DKKm)
120-180
Organic growth
0%
EBIT
1
(DKKm)
112
Organic growth
around 0%
EBIT
1
(DKKm)
85-115
Organic growth
around 4%
EBIT
1
(DKKm)
100-150
1
Before special items
2021 2022 2023 2024 2025
2,929
2,967
2,745
4,187
4,326
Sales volume (thousand m
3
)
H+H International | Annual Report 2025 | 25In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Full year financial review
Income statement
Revenue
Total revenue was DKK 2,743 million compared
to DKK 2,747 million in 2024. Organic growth was
0% in 2025.
Revenue in Central Western Europe amounted to
DKK 987 million compared to DKK 1,030 million in
2024. The decrease amounts to an organic growth
of negative 4%.
Revenue in the UK amounted to DKK 877 million
compared to DKK 871 million in 2024. Organic
growth was positive by 2%.
Revenue in Poland was DKK 879 million compared
to DKK 846 million in 2024. Organic growth was
positive by 2%.
Gross profit before special items
Gross profit was DKK 615 million compared to
DKK 579 million in 2024, corresponding to gross
margins of 22% and 21% respectively.
EBITDA bsi
EBITDA before special items in 2025 increased
by 16% to DKK 291 million, compared to DKK
250 million in 2024. This corresponds to EBITDA
margins of 11% and 9%, respectively.
Depreciation and amortisation
Depreciation and amortisation decreased from
DKK 187 million in 2024 to DKK 179 million in
2025. The decrease is driven by the write-down of
fixed assets during the year.
EBIT bsi
EBIT before special items amounted to DKK 112
million compared to DKK 63 million in 2024,
corresponding to EBIT margin of 4% and 2%,
respectively.
Special items
Special items costs amounted to an expense of
DKK 669 million compared to a net expense of
DKK 22 million in 2024. This relates to impairment
of German fixed assets of DKK 612 million and
restructuring costs of DKK 57 million. For further
details, please see Note 7.
EBIT
EBIT was negative DKK 557 million in 2025
compared to positive DKK 41 million in 2024.
Net financials
Net financials amounted to an expense of DKK 47
million in 2025, compared to an expense of DKK 70
million in 2024. This development mainly relates
to a decrease in interest expenses, resulting from
lower interest rates and a reduced debt position
during the year.
Result before tax
Result before tax amounted to a loss of DKK 604
million compared to a loss of DKK 29 million in
2024.
Tax
Tax for the year amounted to a net expense of
DKK 61 million compared to a net expense of DKK
21 million in 2024 driven by the positive results in
Poland and the UK while losses in Germany are
not being capitalised. For further details, please
see note 10.
Result for the year
Result for the year was negative DKK 665 million,
compared to negative DKK 50 million in 2024.
Loss for the period is attributable to H+H Interna-
tional A/S’ shareholders by DKK 662 million and
a loss to non-controlling interest by DKK 3 million
compared to a loss of DKK 53 million and a profit
of DKK 3 million, respectively, for 2024.
Comprehensive income
Other comprehensive income for 2025 was
positive DKK 13 million compared to DKK 25
million in 2024. The year-on-year movement was
a result of transferring old fair value losses to
the income statement of DKK 10 million and a
positive development in foreign exchange rates of
DKK 6 million.
H+H International | Annual Report 2025 | 26In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial gearing
Cash flow
Operating activities
Cash flow from operating activities before finan-
cial items and tax amounted to cash inflows of
DKK 119 million in 2025 compared to DKK 279
million in 2024. The change in operating cash
flows is primarily driven by stock build-up in
Poland and in the UK.
Total cash flow from operating activities in 2025
was a cash inflow of DKK 71 million compared to
DKK 145 million in 2024.
Investing activities
Cash flow from investing activities in 2025
amounted to a net cash outflow of DKK 132
million, compared to a net cash inflow of DKK
74 million in 2024. The main investing activity is
property, plant and equipment and intangible
assets of DKK 127 million. In addition new and
extended lease agreements has been entered
amounting to DKK 60 million.
The cash inflow in 2024 was mainly driven by the
sale of land and buildings in Poland.
Financing activities
Cash flow from financing activities amounted
to cash outflows of DKK 235 million in 2025
compared to cash inflow of DKK 103 million in
2024.
Balance sheet
On 31 December 2025, the balance sheet total
amounted to DKK 2,653 million compared to DKK
3,473 million on 31 December 2024 mainly driven
by impairment of goodwill and write-down of prop-
erty, plant and equipment.
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 802
million as of 31 December 2025 corresponding
to an increase of DKK 120 million since 31
December 2024. On 31 December 2025, finan-
cial gearing was 2.8 times net interest-bearing
debt to EBITDA before special items.
The increase in net interest-bearing debt since
the beginning of the year was primarily driven by
negative working capital development.
Equity
The consolidated equity decreased by DKK
647 million compared to 31 December 2024.
Equity attributable to H+H International A/S’s
shareholders and non-controlling shareholders
was DKK 922 million and DKK 81 million,
respectively.
Management review for
the parent company
Result for the year was negative by DKK 1,057
million compared to negative DKK 267 million
in 2024. The decrease is primarily due to a
write-down of investment in subsidiaries in
the Central Western Europe region.
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 state-
ments.
2021 2022 2023 2024 2025
291
250
244
657
591
2021 2022 2023 2024 2025
37%
45%
46%
52%
50%
2021 2022 2023 2024 2025
802
2.8x
682
2.7x
887
3.6x
492
0.7x
350
0.6x
EBITDA before special items
Solvency ratio
Net interest-bearing debt & Financial gearing
H+H International | Annual Report 2025 | 27In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Q4 2025 results
2025 2024
(DKK million) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Income statement
Revenue 611 738 719 675 649 729 725 644
Gross profit bsi 135 179 155 146 164 174 132 109
SG&A 72 84 82 80 83 82 85 81
EBITDA bsi 62 93 72 64 82 101 41 26
EBIT bsi 19 53 24 16 36 53 (5) (21)
Result after tax for the period (28) (9) (616) (12) 90 19 (29) (130)
Balance sheet
Invested capital 2,190 2,309 2,444 2,507 2,569 2,654 2,737 2,840
CAPEX 91 38 33 23 39 41 38 57
Net working capital 241 259 282 232 144 212 287 390
Equity 1,003 1,021 1,035 1,660 1,650 1,546 1,543 1,560
Net interest-bearing debt (NIBD) 802 779 837 765 682 887 993 1,006
Cash flow
Cash flow from operating activities 54 102 (26) (59) 19 135 56 (65)
Cash flow from investing activities (69) (26) (25) (12) 147 (13) (34) (26)
Cash flow from financing activities (296) (20) 50 31 43 (32) (30) 122
Free cash flow (15) 76 (51) (71) 166 122 22 (91)
Financial ratios and others
Sales volume (thousand m
3
) 673 791 763 702 694 775 779 719
Organic growth (5%) 2% 0% 3% 6% 2% (3%) (4%)
Gross margin bsi 22% 24% 22% 22% 25% 24% 18% 17%
EBITDA margin bsi 10% 13% 10% 9% 13% 14% 6% 4%
EBIT margin bsi 3% 7% 3% 2% 6% 7% (1%) (3%)
Comments relating to the fourth quarter of 2025
Revenue
Total revenue decreased by 6% to DKK 611 million compared to DKK 649 in 2024. Organic
growth was negative 5% mainly driven by lower volumes.
Gross profit before special items
Gross profit was DKK 135 million, compared to DKK 164 million in 2024, corresponding to
gross margins of 22% and 25%, respectively.
EBIT before special items
EBIT bsi was DKK 19 million in 2025 compared to DKK 36 million in 2024, corresponding to
EBIT margins of 3% and 6%, respectively.
Result after tax
Result after tax for Q4 2025 was a loss of DKK 28 million, compared to a profit of DKK 90
million in Q4 2024.
Cash flow from operating activities
Cash flow from operating activities amounted to a cash inflow of DKK 54 million in Q4 2025
compared to DKK 19 million in Q4 2024 which was driven by a positive development in
working capital for the period.
H+H International | Annual Report 2025 | 28In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
877
DKKm
987
DKKm
879
DKKm
Central Western Europe
36%
The United Kingdom
32%
Poland
32%
Geographical
footprint
We have a diversified geographical footprint
with our activities spread across three core
regions: 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 2025 (DKKm)
Aircrete plants
12
Calcium silicate plants
13
H+H International | Annual Report 2025 | 29In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2021 2022 2023 2024
185,147
319,734
296,280
204,524
164,894
2025
12%
Central Western Europe
Market conditions in Central Western
Europe remained challenging in
2025, particularly in Germany where
activity stayed at historically low
levels. Other markets in the region
were more stable but continued
to experience limited demand.
Market development
Construction activity across the CWE region
remained low in 2025. Germany continued to be
impacted by relatively high financing costs, weak
affordability, and cautious sentiment among both
private buyers and developers. Although interest
rates declined and building permits increased
from a low base, demand did not recover in any
meaningful way. A major fiscal shift in April 2025,
reform of the constitutional debt brake, enabled
increased public spending, including €500 billion
for infrastructure and defence. While these initi-
atives may support the housing sector over time,
they have not yet translated into higher residen-
tial construction activity. However, if financing
conditions improve and investor confidence
strengthens, gradual market stabilisation could
lay the foundation for a more sustained recovery
in the longer term.
Source: Statistisches Bundesamt
H+H Performance and key
developments in 2025
H+H’s performance in CWE reflected the overall
economic environment. Revenue declined to DKK
987 million against DKK 1,030 million in 2024 and
organic growth was -4%.
Business performance in Germany deteriorated
further during the first half of 2025, and conse-
quently, a reorganisation of H+H’s operations in
Germany was initiated. The business model was
changed from national coverage to a regional
structure, enabling closer proximity to customers,
improved commercial focus and a lower cost
base. The new profit centres became operational
in the second half of the year.
The reorganisation also involved closing loss
making activities and write-down of assets. These
steps support the plan to concentrate on regions
with stronger commercial potential and becoming
cash positive.
Other markets
Activity in the Nordics was relatively low during
the early months of the year; however, several
major projects commenced towards the end of
the third quarter, and demand from housebuilders
began to show promising signs of recovery.
Throughout the year, H+H consistently demon-
strated high reliability and maintained an efficient
logistics network, distinguishing itself in a highly
competitive marketplace.
In Switzerland, moderate growth was achieved
in 2025 as inflation eased and interest rates fell.
Meanwhile, the Benelux region remained largely
stable over the past year, despite ongoing economic
uncertainty, thanks to careful collaboration with
customers and a focus on operational efficiency.
With indications of improving macroeconomic
conditions in several European markets, 2026
is anticipated to provide a more favourable envi-
ronment. Nevertheless, the path to recovery is
expected to be steady and gradual rather than swift.
Organic growth
-4%
H+H market share AAC
*
15-20%
H+H market share CSU
*
10-15%
Market position
#3
* In Germany
Building permits, Germany
H+H International | Annual Report 2025 | 30In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2021 2022 2023 2024 2025
265,563
341,041
297,985
241,569
291,280
-9%%
Poland
Source: Statistics Poland
Construction activity in Poland
remained stable throughout 2025
despite a slowdown in permits and
starts. Underlying demand, ongoing
projects and improved mortgage
conditions supported steady
activity.
Market development
The market for residential new build showed
resilience in 2025. Early in the year, leading indi-
cators softened as fewer permits were issued and
fewer new projects were started. Despite this, the
overall level of activity remained solid, driven by the
continuation of existing projects and the ongoing
need for new housing. Mortgage uptake increased
as the central bank reduced interest rates, making
financing more accessible for homebuyers.
Looking ahead to 2026, further interest rate cuts
and improving financing conditions can support
development in building activity. Poland continues
to face a structural housing deficit, a factor that is
likely to support ongoing demand for residential
developments in the coming years.
H+H Performance and key
developments in 2025
Supported by a solid backlog of the housebuilders.
Revenue for the year amounted to DKK 879 million
in 2025, up from DKK 846 million in 2024. Organic
growth for the year was 2%.
AAC performed well in the second half of the year
and sales of CSU remained at a solid level, although
activity from larger developers softened compared
to the previous year. Improvements in the mort-
gage market contributed to the strengthening of
overall sales.
In 2025, work began on upgrading the AAC plant
in Puławy, representing a significant milestone
in the company’s ongoing HOME development
strategy. The initiative aimed to boost productivity
by comprehensively redesigning key elements
of the process, including curing chambers, auto-
claving, and the internal transport system. These
enhancements are set to raise the plant’s overall
capacity by 20%. The investment will further
optimise efficiency and adaptability, allowing H+H
Poland to better manage shifts in market demand.
As a major supplier to Warsaw and its neighbouring
areas, the Puławy facility’s upgrade will enable it
to handle increased volumes and respond more
swiftly to the requirements of local customers. This
positions the plant to deliver reliable service and
prompt deliveries into the future, underpinning
H+H’s dedication to meeting customer expecta-
tions and supporting sustained growth within the
Polish market.
The Polish business retained its strong market
standing and entered 2026 with a robust commer-
cial foundation, continuing to benefit from substan-
tial underlying demand. The outlook indicates that
CSU may see slower growth than the previous year,
following a phase of oversupply among developers,
whereas AAC is expected to perform more strongly
with individual purchasers, bolstered by favourable
economic conditions.
Building permits, Poland
Organic growth
2%
H+H market share AAC
20-25%
H+H market share CSU
20-25%
Market position
#2
H+H International | Annual Report 2025 | 31In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2021 2022 2023 2024 2025
116,502
152,472
192,437
106,473
105,277
11%
The United Kingdom
Total newbuild registrations
Organic growth
2%
H+H market share AAC
40-45%
Market position
#1
Source: National House Building Council (NHBC)
Long-term growth prospects in the
UK market remain supported by the
government's housing ambitions.
However, the expected increase in
housing activity during 2025 did not
materialise.
Market development
Expectations for the UK economy entering
2025 were cautiously optimistic, supported by
falling inflation, interest rate cuts and govern-
ment spending initiatives. Forecasts pointed to
improving affordability and stronger housebuilding
activity. However, the second half of the year devel-
oped more slowly than anticipated.
During the year, major housebuilders reassessed
their positions and revised their expectations,
resulting in a more cautious outlook for growth
across the sector. Although interest rates fell as
anticipated, offering some relief to the market,
ongoing structural challenges persisted. Notably,
delays in the planning process and pronounced
regional disparities in housing demand and supply
continued to restrict the pace of the anticipated
recovery.
Looking ahead, affordability pressures and slow
economic momentum persist, but improvements
in government support and access to finance
could provide reasons for optimism. Policy
changes and efforts to ease planning restrictions
could further encourage both developers and
buyers, helping the market regain momentum—
provided that broader economic conditions
remain stable.
Despite these short-term challenges, long-term
growth prospects are still underpinned by govern-
ment targets to deliver 1.5 million new homes over
five years and by the ongoing need to address the
UK's structural housing shortage.
H+H Performance and key
developments in 2025
Revenue for the year amounted to DKK 877 million
compared to DKK 871 million last year while
organic growth was 2%.
Commercial activity centred on supporting
customers through a difficult market, with
particular focus on maintaining delivery reliability
and providing technical solutions for both large
developers and regional housebuilders. Engage-
ment with key stakeholders remained strong, and
customer feedback reflected positively on the
company’s service performance following the
ramp-up of Pollington in late 2024.
The ramp-up of Pollington was ongoing and
intended to support the expected rebound in
activity early in the year. Although the antici-
pated increase in activity did not materialise,
the reopening enabled H+H UK to operate with
greater reliability throughout 2025. This led to
improved service levels and further strengthened
customer partnerships.
H+H International | Annual Report 2025 | 32In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Corporate governance 34
Management and Board of Directors 38
Board of Directors 39
Shareholder information 42
Risk management 44
Governance
H+H International | Annual Report 2025 | 33In 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, manage-
ment, and capitalisation. The Executive Board is responsible for
the execution of the strategy and the day-to-day management. The
organisation and operation of the Board of Directors are set out in
the Rules of Procedure for the Board of Directors, and similarly the
organisation and operation of the Executive Board and its co-opera-
tion with the Board of Directors 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 5 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 Directors
has after the Annual General Meeting 2025 merged the Remunera-
tion Committee and the Nomination Committee into one committee,
i.e. the Nomination & Remuneration Committee, and in addition to
that the Board continued to also have the Audit Committee. The
board committees shall report and provide recommendations to the
Board of Directors and may make independent decisions in regard
to non-material matters as further described in the Charter for each
board committee. The members of each board committee, including
the committee chair, are each appointed by the Board of Directors on
the basis of their specific experience and competences.
Key activities 2025 - 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 plant
• Monitoring the German business going from a nationwide pres-
ence to a customer proximate model focused on building strong
positions within areas close to our plants
• 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
• Annual board evaluation process
H+H International | Annual Report 2025 | 34In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Key activities 2025 - Audit Committee - GOV-1
• Monitoring financial annual and interim reporting process,
including treatment and estimates, accounting policies, controls
and the overall integrity of the reporting process, as well as review
of the audit strategy
• Oversight of enterprise risk management, including risk catego-
ries and review and possible changes to various policies related
to finance, ESG, controls and other risk management issues,
committee charter etc.
• Monitoring of group insurance strategy, coverage, and pricing
• Monitoring sustainability reporting process, including review of the
double materiality assessment
• Monitoring of liquidity and compliance with financial covenants
• Monitoring the whistleblower set-up, including whistleblower
policy and number and type of whistleblower reports
Key activities 2025 - Nomination &
Remuneration Committee
- GOV-1
• Review and possible changes to various standard terms and poli-
cies related to incentive programs, social and governance matters,
committee charter etc.
• Arrangement and execution of the annual evaluation of the Board
and of the Executive Board and their co-operation, collective and
individual competences as well as review of succession plans
• 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 2025
Board
Member
since
Meeting
Attendance
Audit
Committee
Meeting
attendance
Nomination & Remuner-
ation Committee
Meeting
attendance
Miguel Kohlmann (Vice Chair January-March, Chair since April)
2018 7/7 2/2
Peter Thostrup (Vice Chair since April)
April 2025 6/6 3/3
Volker Christmann
2017 7/7 1/1 2/2
Kajsa von Geijer
2022 7/7 4/4 2/2
Helen MacPhee
2019 6/7 4/4
Kent Arentoft (Chair through March 2025)
2013 1/1 1/1
Stewart A Baseley (member through March 2025)
2010 1/1 1/1
Jens-Peter Saul (member through March 2025)
2023 1/1 1/1
Chair Vice Chair Member
Directors of a proposal not to propose any changes to the Policy at
the annual general meeting in April 2025
• Review of the Remuneration Report for 2024
• Review of and proposal for the fees for 2025 to the Board of Direc-
tors and presentation to the Board of Directors of the fee proposal
which was presented at the annual general meeting in April 2025
• Review of the actual remuneration for 2024 to the Executive
Board and proposal to the Board of Directors on any recom-
mended future adjustments to the remuneration principles for the
members of the Executive Board
• Review of outcome under the incentive programs vesting in 2025
and proposal to the Board of Directors of KPIs and targets for the
short-term and long-term incentive programmes starting in 2025
H+H International | Annual Report 2025 | 35In 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 compe-
tence gaps or strengthening specific competences in the Board.
Actual board diversity by the end of 2025
Nationality & residence
*
Brazil (1) / Denmark (1) / Germany (2) / Sweden (1) / Switzerland (1) /
United Kingdom (1)
Board tenure (years)
1-5 (2) / 6-10 (3)
Board independence rate
100%
Age distribution (years)
60-64 (3) / 65-69 (2)
Gender
Female (2) / Male (3)
Educational backgrounds
Business Administration, Controlling and Auditing / Mechanical Engineering /
Economics / Strategy and Management / Financial and Management Accounting /
Human Resource Management
Board competence profile defined by the Board - 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. When the Board as part of its annual board eval-
uation decides to want to change its composition, the possibility to
improve especially the Board’s age profile will naturally be pursued.
Hence, if two candidates for a board position are equally competent,
the person improving the age diversity will be preferred.
Board evaluation 2025 - GOV-1
The Board of Directors’ annual evaluation procedure for 2025
was conducted as a self-evaluation without the participation by
an external expert. A questionnaire was developed and issued for
the Board, the Audit Committee, the Nomination & Remuneration
Committee and the Executive Board, respectively.
The Board then held a meeting without the presence of the Executive
Board to discuss the findings of the questionnaires and agree on
conclusions and actions points. The issues evaluated included e.g.:
• the board composition (diversity gaps in regard to competences,
gender, age, board continuity/succession planning etc.)
• the board performance (collective and individual performance) and
• the co-operation between the Board and the Executive Board
(collective and individual performance, co-operation inside and
outside of the board and board committee meetings, chairship
meetings etc.).
After the board meeting, relevant findings and conclusions were
discussed with the Executive Board.
In summary, it was found that the board members were all well
prepared and had a high participation rate for all meetings, indicating
that no board members were overboarded. The Board continued to
find that having a Chairship was an effective way to help manage the
Board, and it also found that the merger since the last annual general
meeting of the Remuneration Committee and the Nomination
Committee into a Nomination & Remuneration Committee had made
their work more effective and seamless. There was also agreement
both in the Board and from the Executive Board, that the reduction
of the size of the Board by two board members had intensified the
participation by and input from each board member, thereby also
making the discussions more dynamic.
Despite the smaller number of board members, the Board still
found there to be good and relevant diversity in respect of compe-
tences 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 benefited from
having board members that collectively represented very diverse
* One board member has dual citizenship and lives in a country different from citizenship
H+H International | Annual Report 2025 | 36In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
and relevant experiences with regard to special subject matters,
industries, country market experience etc.
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 latest in 2028. H+H reports on remuner-
ation in an annual Remuneration Report prepared in accordance with
section 139b in the Danish Companies Act and will be presented to
the shareholders at the annual general meeting for an advisory vote.
The Remuneration Report for 2025 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
https://www.hplush.com/en/investor-relations/corporate-govern-
ance. 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 protec-
tion 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 artificial intelligence, such as machine learning, as
a natural part of our business.
Our Data Ethics Policy can be found on https://www.hplush.com/en/
compliance/data-ethics
H+H International | Annual Report 2025 | 37In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Miguel Kohlmann, Chair Volker Christmann Kajsa von GeijerPeter Thostrup, Vice Chair Helen MacPheeBjarne Pedersen, CFO
From the left
Jörg Brinkmann, CEO
Management and
Board of Directors
H+H International | Annual Report 2025 | 38In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Board of Directors
Miguel Kohlmann, Chair Peter Thostrup, Vice Chair Volker Christmann
Male. Born 1962. German/Brazilian. Male. Born 1960. Danish. Male. Born 1957. German.
Professional board member and advisor. Professional board member. Professional board member and advisor.
Independent
Member since 2018 and Chair since April 2025
Member of the Nomination & Remuneration Committee
Independent
Member since April 2025 and Vice Chair since April 2025
Member of the Audit Committee
Independent
Member since 2017
Chair of the Nomination & Remuneration Committee.
H+H shareholding
Does not hold any H+H shares
No changes made in 2025
H+H shareholding
Holds 750 H+H shares
Purchased 750 H+H shares in 2025
H+H shareholding
Does not hold any H+H shares
No changes made in 2025
Areas of expertise
Extensive management experience in building materials and industry on a global scale.
Worked in controlling, sales, production and general management.
Areas of expertise
Extensive executive management experience both as CFO and CEO in international
listed and privately held companies within different sectors such as timber, electronics
and biotech. Has also worked in commercial banking, including some years in London.
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.
Other management positions and directorships
Chair 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
Chair of Better Energy Holding A/S (Denmark), Bitte Kai Rand & Co. A/S (Denmark)
and Power Stow A/S (Denmark).
Board member of A/S Th. Wessels & Vett, Magasin du Nord (Denmark).
Other management positions and directorships
Chair of the Board of Directors of BuVEG (Bundesverband energieeffiziente Gebäude-
hülle) (Germany) and ABE (Aachen Building Experts) (Germany).
Vice Chair of the Board of Directors of FIW (Forschungsinstitut für Wärmtechnik)
(Germany)
GOV-1 – The role of the administrative, management and supervisory bodies
H+H International | Annual Report 2025 | 39In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Kajsa von Geijer Helen MacPhee
Female. Born 1964. Swedish. Female. Born 1962. British.
Professional board member and advisor. Senior Vice President of Finance, AstraZeneca plc (UK).
Independent
Member since 2022
Member of the Audit Committee
Member of the Nomination & 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 2025
H+H shareholding
Does not hold any H+H shares
No changes made in 2025
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 and international expe-
rience in change management, financial oversight and control, governance and risk
frameworks as well as international talent development.
Other management positions and directorships
Member of the Board of Directors of Geveko Markings Group AB (Sweden).
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 2025 | 40In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
GOV-1 – The role of the administrative, management and supervisory bodies
Executive Board
Jörg Brinkmann Bjarne Pedersen
Male. Born 1979. German. Male. Born 1977. Danish.
CEO since October 2022 CFO since April 2024
H+H shareholding
Holds 25,300 shares
4,000 were purchased in 2025
H+H shareholding
Holds 10,141 shares
No changes made in 2025
Background
2018-2022: President EU and Member of ELT of James Hardie Industries, USA
2014-2018: MD of Fermacell and Member of ExCom at Xella, DE
2005-2014: Various leadership positions in Sales and Marketing at Xella, DE
Background
2019-2024: Chief Strategy Officer in H+H International A/S
2008-2018: Various Finance and IT leadership positions, H+H International A/S
2006-2008: Global cash management in Danske Bank A/S
1998-2005: Auditor background
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 2025 | 41In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
H+H International A/S is listed on the Nasdaq
Copenhagen stock exchange and trades under the
ticker symbol HH.
Share-price development
The H+H International A/S shares started the year at a price of DKK
78.70 and closed the year at DKK 93.10, representing an increase of
18.30%.
At the end of the year, the total market value of H+H amounted to
DKK 1,536 million. The highest price during 2025 was DKK 140.60 on
28 May and the lowest price was DKK 69.00 on 16 January.
Share capital and treasury shares
H+H's shares are listed on the Nasdaq Copenhagen stock exchange
and consist 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 approximately 1% of its share capital.
Composition of shareholders
On 31 December 2025, H+H had approximately 7,000 registered
shareholders. Major shareholders owning more than 25% 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 and ATP
Arbejdsmarkedets Tillægspension, Denmark.
According to available data, around 20% of the share capital
is owned by private investors, with Danish private investors
comprising the majority of this group.
Capital allocation
Our approach to allocating free cash flow remains consistent with
previous years. When our financial gearing ratio exceeds our target
range, we prioritise repaying net interest-bearing debt. Currently,
our intention is to use free cash flow to reduce our debt and bring the
gearing ratio back within our target of 1–2 times net interest-bearing
debt to EBITDA, excluding special items.
Shareholder information
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
Major shareholders
per 31 December 2025
Solbet Sp. z o.o. , Poland 25-33.33%
Arbejdsmarkets Tillægspension, Denmark 5-10%
Nordea Funds Ltd., Finland 5-10%
Financial calendar 2026
3 March 2025 Annual Report
14 April 2026 Annual General Meeting
12 May Q1 2026 Interim Financial Report
11 August H1 2026 Interim Financial Report
10 November Q3 2026 Interim Financial Report
H+H International | Annual Report 2025 | 42In 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
60
80
100
120
140
Annual general meeting
The next annual general meeting (AGM) is scheduled for 14 April 2026 at 11.00 a.m.
at Copenhagen Marriott Hotel, Copenhagen. Further details are published through
a company announcement and on our group website 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 Association require the resolution to
be 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.
2025 relative share-price performance
More information
Other relevant shareholder
information, including a list of
the analysts covering H+H, can
be found on the group’s investor
relations website.
To ensure that capital market participants, including current and
prospective investors, are able to make well-informed investment
decisions, we seek a transparent and active dialogue with all financial
market participants, including investors, sell-side analysts, journalists and
the 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. Enquiries 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 2025 | 43In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Net impact after mitigations
Probability
1
4
6
5
3
2
Risk management
H+H operates a dynamic ERM framework based on COSO principles,
integrating both strategic and operational risks, with a centralized
approach to risk ownership, strengthened by regional discus-
sions that help identify emerging risks and address those arising
in ongoing projects and daily operations. The framework places
particular emphasis on market, production, cyber, health and safety,
and environmental risks. Risk impact and likelihood are assessed
using both qualitative and quantitative methods.
Detailed information on the risk management structure is available in
the Corporate Governance statement for 2025 page 5.
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 risk
Health & Safety
Climate
1
2
3
4
5
6
H+H International | Annual Report 2025 | 44In 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,
a persistent inflation, geopolitical uncertainty, relatively high interest rates and low consumer confidence 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 adopting a volume strategy to
avoid excess production capacity leads to increased price pressure.
H+H relies on a stable production, therefore unforeseen stoppages,
quality issues. 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 compliance with legal require-
ments to operate legally and availability of raw materials and labour.
Mitigating
actions
H+H continuously monitors developments in the residential new-build market and regularly evaluates current and projected
market indicators, including building permits, interest rates and consumer confidence. Responding as quick as possible to shifts
in market demand is essential, although some lead time always persists. Pricing discipline varies by market based on the specific
market situation, and strong relationships with key customers are cultivated to ensure pricing strategies remain both competitive
and sustainable.
H+H remains committed to investing in our plants to ensure limited
disruption, monitoring and investigation of critical production equip-
ment, preventive maintenance and regional developed emergency
plans. In addition, we have implemented a hedging policy to manage
the risks associated with energy price volatility.
Net risk
assessment
The building industry remains sensitive to economic fluctuations, as evidenced in recent years. This exposure is mitigated
through a balanced pricing discipline and ongoing investments in production facilities. Overall, the risk is assessed as medium
to high.
Maintaining stable and efficient production remains a key priority,
with ongoing monitoring and assessment of potential production and
supply risks as part of daily operations. Given the mitigation measures
in place, the risk is considered medium.
H+H International | Annual Report 2025 | 45In 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 escalating, with cyberattacks
becoming increasingly frequent and more
conspicuous. Incidents such as ransomware
attacks that block access to networks or critical
systems can disrupt essential processes across
multiple business areas.
Fatal or critical accidents resulting in fatalities or
severe harm to employees or external parties can
occur due to several factors. The organisation is
working to guard against inadequate behavior,
against insufficient health and safety training, and
to ensure proper recruitment practices and cultur-
al alignment. Further to this, timely upgrades to
equipment is needed, as modern machinery typi-
cally incorporates more advanced safety features.
The main risks identified include production
sites failing to execute CO
2
reduction plans
necessary to meet H+H’s SBTi targets or
violating environmental laws, insufficient
investment to upgrade sites and improve their
energy mix, and key suppliers being unable
to reduce their CO
2
emissions, which impacts
H+H’s Scope 3 reduction aspirations.
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 ade-
quacy of defence measures are carefully con-
sidered. Additionally, continuous professionally
developed training in cybersecurity is provided
for all employees and results of the training is
presented to management 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.
Root cause analysis are conducted to reduce
risks, while performance is continuously improved
through internal and external reviews, followed
by regular follow-ups. Further to this, recurring
review of equipment needs is embedded in the
production planning.
Strategic effort have been directed toward
achieving science-based targets. Operational
management is responsible for executing
plans that support these targets, with ade-
quate funding allocated to ensure success-
ful implementation. Procurement is key in
sourcing materials, and mitigating actions
are detailed in the Sustainability Statement
under Environmental Information. These
initiatives are supported by a management
and reporting system that monitors progress.
ESG summits are held to align objectives and
action plans across the organisation.
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 has observed a rise in both the frequency
and variety of attempts. Mitigating actions are
regularly reviewed and applied, which decreases
the probability of incidents. As a result, the risk
level is assessed as medium.
Each plant operates with a relatively small work-
force around the active machinery, and accidents
rarely involve more than one individual. Based on
this, the risk is assessed as low.
Science-based targets are ambitious and the
framework presents a number of challenges.
The challenges are more industry specific than
company specific. Hence the probability of the
risk is considered low.
H+H International | Annual Report 2025 | 46In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
General information 48
Environmental information 62
Environmental accounting policy 68
EU Taxonomy 69
Social information 75
Social accounting policy 84
Governance information 85
Sustainability
statement
H+H International | Annual Report 2025 | 47In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
General information
ESRS 2 General disclosures
BP-1 General basis for preparation
Our sustainability statement is prepared on
a consolidated basis with our 2025 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 struc-
tured into four sections – ‘General’, ‘Environmental’,
‘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 committees
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 Materiality
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.
In 2025, we updated the DMA review with no
major changes to the outcome, however, the
following disclosure requirements have been
assessed to be immaterial. S1-13 and S1-15. The
main reason being that most of our workforce are
non-office, hence working within a designated
time schedule and fixed tasks, limiting the impact
of work-life balance and skill development.
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 48
BP-2 Disclosures in relation to specific circumstances Page 56
GOV-1 The role of the administrative, management and supervisory bodies Pages 35-41, 49
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
Pages 48-49
GOV-3 Integration of sustainability-related performance in incentive schemes Page 49
GOV-4 Statement on due diligence Page 50
GOV-5 Risk management and internal controls over sustainability reporting Pages 55-56
SBM-1 Strategy, business model and value chain Pages 17, 21-22
SBM-2 Interests and views of stakeholders Page 51
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Pages 52
IRO-1 Description of the processes to identify and assess material impacts, risks and
opportunities
Pages 54
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability
statement
Pages 53
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 2025 | 48Financial 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
quarterly 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 2025, 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 2025 and like last year, the target is weighted 15%. The
measurement period of the programme runs multiple financial years
at the time. Both long- and short-term targets relating to emissions
are assessed and determined in relation to the GHG emission reduc-
tion 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 17 and 21-22. For employees by geographical areas,
please refer to S1-6.
H+H International | Annual Report 2025 | 49In 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 48-49
 
People and environment
ESRS 2 GOV-3, page 49
 
People and environment
ESRS 2 SBM-3:
pages 63-64 (E1)
Environment
pages 75-76 (Health & Safety, S1)
People
page 77-78 (Equal treatment & opportunities for
all, S1)
People
page 82 (Working conditions, S1)
People
b) Engaging
with affected
stakeholders in
all key steps of
the due diligence
ESRS 2 GOV-2, pages 48-49
 
People and environment
ESRS 2 SBM-2, page 51
 
People and environment
ESRS 2 IRO-1, page 54
 
People and environment
ESRS 2 MDR-P:
page 64 (E1-2)
Environment
pages 76, 78, 82 (S1-1)
People
Social: page 82 (S1-2)
People
ESRS 2 IRO-1, page 53
 
People and environment
c) Identifying and
assessing adverse
impacts
ESRS 2 SBM-3:
pages 63-64 (E1)
Environment
page 75-76 (Health & Safety, S1)
People
page 78-78 (Equal treatment & opportunities for
all, S1)
People
page 82 (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 62 (E1-1)
Environment
pages 64-65 (E1-3)
Environment
pages 76, 78, 82 (S1-4)
People
e) Tracking
effectiveness of
these efforts and
communicating
ESRS 2 MDR-M:
page 65 (E1-4)
Environment
pages 76-77 (S1-14)
People
page 81 (S1-9)
People
page 81 (S1-16)
People
ESRS 2 MDR-T:
page 65 (E1-4)
Environment
pages 76, 79, 82 (S1-5)
People
GOV-4 Statement on due diligence
Environment People
H+H International | Annual Report 2025 | 50In 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 can influence their workplace and concerns
are met, e.g. in the form of improvements 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 heavy on suppliers to meet our emis-
sions reduction targets. This is the basis for our
supplier engagement, focusing on implementa-
tion of carbon reduction initiatives such as carbon
capture storage and utilisation as well as 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 other stakeholders with the
purpose of addressing potential risks and oppor-
tunities 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 enhance
relationships.
Shareholders
H+H is listed on the Danish Stock exchange. We
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 participation 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 stake-
holders.
Dialogue with shareholders is described in more
detail in the Shareholder Information section
(Investor Relations) on page 43.
We do not have plans to modify relationship and
views of stakeholders.
H+H International | Annual Report 2025 | 51In 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 decision-making. 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 Business conduct in the
Environmental, Social and Governance information
sections in this sustainability 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
H+H's impact on social dialogue in the workspace Working conditions Potential negative Work-life balance, working
conditions and social dialogue
Own operations Short
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 2025 | 52In 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 58-61.
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 2025 | 53In 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. Identification
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 engagement happened through
interviews and desktop research. Parallel to this,
we have also assessed the financial risks and
opportunities for sustainability-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
opportunities:
• Majority (95+%) of our supply is virgin material,
excavated and supplied directly from tier
1 suppliers and not processed from tier 2
suppliers. We have assumed, that the risk
profile and potential impacts deriving from
Tier 2 suppliers are equal to those from Tier 1
suppliers.
• We assume, the primary actual and potential
impact lies within our upstream activities
and production. Therefore, our analysis for
downstream activities is primarily based on
interviews 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 2025 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 exhaustive.
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 downstream
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 contro-
versies 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
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
H+H International | Annual Report 2025 | 54In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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 commitment is
therefore to comply with these requirements. In
the UK we have implemented small projects to
further biodiversity in line with local regulations.
The results of these are regularly monitored.
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 are dependent on primarily virgin materials, as
there are not yet any recycled material available
that can substitute these materials, both from
a qualitative and a regulation point of view. The
virgin materials we are using are not considered
a scarce resource in the areas they are extracted
from and all are originating from Europe.
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 very limited waste occurs
during this process. At this stage we have therfore
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: Contin-
uous identification and assessment of risks
related to internal controls, including sustain-
ability 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 identification 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
activities are performed and reviewed by the
regions to ensure the quality and validity of
management 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 mitigate
these risks and ensure the reliability of the sustain-
ability reporting system and related reports.
The risk corresponding controls are the following:
reconciling input data in our ESG reporting
system to supporting documentation, performing
analytical 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 mitigation plans
from the Enterprise Risk Management 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 mitigations.
H+H International | Annual Report 2025 | 55In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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 cooperation 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. For scope 3 category
1 the value chain data is based on primary sources
which are considered as accurate as possible.
We believe that these estimates are reasonable
under the circumstances. We have currently not
planned any changes to this approach.
There have been no changes in preparation and
presentation of the sustainability information for
2025, nor have there been any adjustments to
comparative years.
Incorporation by reference
Disclosure requirement Data point Sub-section Page
ESRS 2 GOV-1 All Corporate Governance in general 34-41
G1.GOV-1 §5 (b) Board of Directors 39-41
SBM-1 All Business Model, Strategic Focus Areas (Mission Zero) 17, 21-22
SBM-2 §45 (a) iii, iv Investor Relations 43
ESRS 2 GOV-5 All Enterprise Risk Management (H&S and Climate) 46
E1-1 §15 Business Model, Strategic Focus Areas (Mission Zero) 21-22
E1-4 §34 (f) Business Model, Strategic Focus Areas (Mission Zero) 21-22
Climate-related scenario analysis
In 2022, we conducted a climate-related scenario
analysis using the TCFD guidelines to assess tran-
sition and physical risks and opportunities and how
they might impact the resilience of our business
strategy. The analysis has been annually refreshed.
The analysis was based on the Net Zero 2050,
Delayed Transition and Current Policies
scenarios released by the Network for Greening
the Financial 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 down-
stream customers.
The timeframe used in the scenarios defined
short-, medium- and long-term as 2030, 2040
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.
In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements H+H International | Annual Report 2025 | 56
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
policies 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 infrastruc-
ture supports our goal to reduce emissions in our own operations.
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 emis-
sions 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 disor-
derly 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 introduc-
tion 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 poli-
cies 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 2025 | 57In 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. 36
ESRS 2 GOV-1 Percentage of board members who are inde-
pendent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material p. 36
ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex I Material p. 50
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
Implementing 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 controver-
sial weapons paragraph 40 (d) iii
Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU)
2020/1818, Article 12(1) Delegat-
ed 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) Delegat-
ed 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. 62
ESRS E1-1 Undertakings excluded from Paris-aligned Bench-
marks 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 Imple-
menting Regulation (EU) 2022/2453 Template 3: Banking book
– Climate change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material p. 65
ESRS E1-5 Energy consumption from fossil sources disaggre-
gated by sources (only high climate impact sectors) paragraph
38
Indicator number 5 Table #1 and Indica-
tor n. 5 Table #2 of Annex 1
Material p. 66
ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material p. 66
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. 66
H+H International | Annual Report 2025 | 58In 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 para-
graph 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
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 Imple-
menting 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
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-re-
lated 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
Implementing 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
Implementing Regulation (EU) 2022/2453 paragraph 34;Tem-
plate 2:Banking book -Climate change transition risk: Loans
collateralised by immovable property - Energy efficiency of the
collateral
Not material
ESRS E1-9 Degree of exposure of the portfolio to climate-relat-
ed 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 2025 | 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 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 para-
graph 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 Indica-
tor number 11 Table #1 of Annex I
Material p. 78
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. 78
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 manage-
ment system paragraph 23
Indicator number 1 Table #3 of Annex I Material p. 76
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. 77
ESRS S1-14 Number of days lost to injuries, accidents, fatali-
ties or illness paragraph 88 (e)
Indicator number 3 Table #3 of Annex I Material p. 77
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 -Indi-
cator n. 14 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (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 Indica-
tor n. 11 Table #1 of Annex 1
Not material
H+H International | Annual Report 2025 | 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 S2-1 Policies related to value chain workers paragraph
18
Indicator number 11 and n. 4 Table #3
of Annex 1
Not material
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
Regulation (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
Regulation (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 Indica-
tor 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
Regulation (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-brib-
ery 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 Material p. 87
H+H International | Annual Report 2025 | 61In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Environmental information
Environmental
information
List of material disclosure requirements Page reference
E1 – Climate change
GOV-3 Integration of sustainability-related performance in incentive schemes Page 49
E1-1 Transition plan for climate change mitigation Page 62
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
Page 63
E1-2 Policies related to climate change mitigation and adaptation Page 64
E1-3 Actions and resources in relation to climate change policies Page 64
E1-4 Targets related to climate change mitigation or adaptation Page 65
E1-5 Energy consumption and mix Page 66
E1-6 Gross scopes 1, 2, 3 and Total GHG emissions Page 67
E1-9 Anticipated financial effects from material physical and transition risks and poten-
tial climate-related opportunities
Page 67
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 compat-
ible 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
from large-scale use of CCSU (carbon capture
storage and utilisation).
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
Group Management and the Board of Directors
In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2025 | 62Financial statements
The Group Operations Director is responsible for
the implementation of the transition plan.
A dedicated amount of the CAPEX budget (up to
15%) is annually allocated to support emission
reduction projects. We also integrate performance
measures related to GHG emissions reductions
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.
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
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)
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 99t CO
2
of scope
1 and 2 emissions during 2025. This negative
impact occurs over the short and medium term.
With our net zero target we do not expect to have
negative impact in the long term.
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 2025. No new findings were discov-
ered. The analysis considered H+H’s full value
chain, including our own operations, upstream
cement and lime producers and downstream
customers. No part of the value chain was
when carbon is removed from limestone when it is
heated to produce clinker for cement or lime. The
CO
2
released is an unavoidable consequence of
this reaction, as the limestone has absorbed CO
2
during its formation – just like a tree does.
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
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 2025 | 63In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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.
• Risk 1: Increased cost of cement and lime raw
materials
– No net cost is expected for responding to the risk
• Risk 2: Extension of the EU Emissions Trading
System (ETS) to include H+H
– No net cost is expected for responding to the risk
• Risk 3: Delay in the decarbonisation roadmaps for
cement and lime
– No net cost is expected for responding to the risk
• Risk 4: Substitution by new low carbon building
materials products
– No net cost is expected for responding to the risk
• Opportunity 1: Decarbonisation of products
– Moderately positive impact on EBIT of DKK
100-250 million per annum in the medium to long
term due to increased revenues resulting from
increased demand for products and services
The findings from the scenario analysis are
incorporated in our strategy. Actions to mitigate
the transition risks and capture the opportu-
nity 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 operations, as well as our upstream and
downstream value chain.
The policy does not address energy efficiency,
climate change adaptation and renewable energy
deployment.
The policy is distributed via H+H’s policy
management 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 organisation. 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 (up to 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
changed to 100% renewable electricity in all
our plants. We have therefore completed this
target and plan to continue on 100% renewable
electricity.
2. Investments in energy efficiency
We are continuously implementing energy-saving
projects and embedding these into other upgrade
projects. In 2025, multiple projects were imple-
mented across all regions and various plants to
further optimise our manufacturing footprint and
equipment, while also improving our carbon foot-
print. The identification and implementation of
continuous improvements will remain a key focus
throughout 2026.
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, when reasonably possible. We have
already begun our energy mix improvement
by converting one plant in Poland from coal to
natural gas and 2 plants to be able to supplement
coal with biomass.
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.
A reduction of clinker content in cement used for
AAC products has already resulted in a reduction
H+H International | Annual Report 2025 | 64In 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
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 two climate-related targets covering
emissions from our own operations as well as our
supply-chain emissions. 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.
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.
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
H+H International | Annual Report 2025 | 65In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
24%
0%
61%
4%
44k
MWh
18k
MWh
99k
MWh
2k
MWh
255k
MWh
11%
23%
0%
63%
10%
4%
MWh
17k
MWh
107k
MWh
2k
299k
MWh
2025
2024
Natural gasCoal
Renewable electricity
(100% from purchased electricity)
Oil Fossil steam and electricity
Breakdown of energy comsumption (MWh)
Energy intensity per net revenue 2024 2025 %
Total energy consumption from activities in high climate impact sectors per
net-revenue from activities in high climate impact sectors (MWh/Monetary
unit) 152 172 13%
Total energy consumption (MJ/m
3
) 549 548 0%
Total energy consumption (MWH) 417,035 471,183 13%
Total net revenue (mDKK) 2,747 2,743 0%
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.
We maintained a low energy consumption of
548 MJ per m³ in 2025, consistent with the 2024
level, which already reflected the impact of the
restructuring initiatives implemented in 2023.
There was no significant change in our energy mix
during 2025.
Energy intensity based on net revenue
The increase in energy per net revenue is related
to 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. H+H does not have
scope 1 GHG emissions from regulated emission
trading schemes.
Scope 1+2
In 2025, we continued to implement additional
CO
2
reducing projects and initiatives—such
as replacing and insulating pipelines and opti-
mizing autoclave processes—leading to a further
reduction in carbon intensity to 31.9 kg per m³
produced. Compared to our 2019 baseline of
45.3 kg per m³, this represents a 29% improve-
ment, supporting our roadmap toward achieving
our SBTi targets for 2030 and net zero emissions
by 2050.
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 - In progress
• Have at least one scope 1+2 neutral
plant by 2030 - In progress
H+H International | Annual Report 2025 | 66In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Retrospective Milestones and target years
Base
year (2019) 2024 2025 % vs. LY 2030
Annual
% target
/ Base year
Scope 1 GHG emissions
Gross scope 1 GHG emissions (tCO
2
eq) 153,887 81,884 92,545 13% 115,018
1
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 25,522 26,304 3%
Gross market-based scope 2 GHG emissions (tCO
2
eq) 59,109 6,885 6,192 -10%
Significant scope 3 GHG emissions
Total Gross indirect (scope 3) GHG emissions (tCO
2
eq) 758,327 394,435 453,614 15%
Reduce by 22%
per m
3
2.0%
1 Purchased goods and services 700,604 351,484 409,430 16%
3 Fuel and energy-related activities
(not included in scope 1 or scope 2) 34,964 19,234 21,422 11%
4 Upstream transportation and distribution 13,656 14,680 14,173 -3%
9 Downstream transportation 9,104 9,038 8,589 -5%
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq) 971,324 501,842 572,463 14%
Total GHG emissions (market-based) (tCO
2
eq) 971,324 483,205 552,351 15%
¹ Scope 1+2 is a combined target
GHG Intensity based on net revenue
GHG intensity per net revenue 2024 2025 %
Total GHG emissions (location-based) per net revenue (tCO
2
eq/Monetary unit) 183 209 14%
Total GHG emissions (market-based) per net revenue (tCO
2
eq/Monetary unit) 176 201 14%
Net revenue 2,747 2,743 0%
Scope 3
For the first time since our 2019 baseline year, we saw an
increase in Scope 3 intensity per m³, rising by 2% from
2024. This development was primarily driven by slightly
higher emissions related to our raw materials, as our
suppliers have reported less efficiency in their produc-
tion due to a lower market demand.
Given that Scope 3 emissions account for approximately
80% of our total emissions—and in light of this nega-
tive trend in 2025—we are strengthening our efforts to
identify initiatives that can reduce our Scope 3 footprint.
This includes intensifying collaboration with our lime
and cement suppliers and supporting their efforts to
reach net zero as well as exploring other significant
reduction opportunities.
Total emissions
Our nominal emissions have increased due to higher
production volumes.
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.
H+H International | Annual Report 2025 | 67In 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
(offices excluded due to insignificance)
• 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 2023. 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:
Scope 3 categories – material
Activity 1,3,4 and 9 were deemed material for
2025 and have been reported on. For scope 3
activities 1 and 3, we have used primary data for
all sources and for activities 4 and 9, we have
used industry generic factors (ICCT)
Scope 3 categories – not material
Activity 2 (Capital goods);
We only purchase
limited capital goods from an emission point of
view, relative to our material categories.
Activity 5 (Waste generated in operations);
We
generate limited waste in production and the
majority is being recycled
Activity 6 (Business Travel);
We have conducted
an internal analysis of emissions from travelling,
showing a very limited impact
Activity 7 (Employee commuting);
We have
conducted an internal analysis of emissions
from commuting, showing a very limited impact
Activity 8 (Upstream leased assets);
We do not
have any leased assets that are not in our control
Activity 10 (Processing of sold products);
We do not sell products that require further
processing by our customers.
Activity 11 (Use of sold products);
We sell
finished goods used for wall building, hence no
material emission occurs in the use-phase
Activity 12 (End-of-life treatment of sold prod-
ucts);
We have not identified ways to quantify
the impacts as the end-of-life occurs 50-200
years after completion
Activity 13 (Downstream leased assets);
We do
not act as lessor
Activity 14 (Franchises);
We do not operate with
franchises
Environmental
accounting policy
Activity 15 (Investments);
We only invest limited
from an emission point of view, relative to our
material categories
• CO
2
e scope 3 category 1 is calculated as
purchased materials in scope x emission
factor. Where emission factors are disclosed
by the supplier this is used. If such are not
available generic industry emission factors are
applied
• CO
2
e scope 3 category 3 is calculated as
consumed energy x emission factor from
DEFRA
• CO
2
e scope 3 categories 4 and 9 are calculated
as total transported km of our products x payload
in tonnes x generic transport emission factor
• Total energy is calculated as combusted fuel type
x power factor per fuel type + used electricity.
Energy consumption is reported for production
sites, and data is obtained from invoices and
converted into MWh using appropriate conver-
sion factors
• 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
H+H International | Annual Report 2025 | 68In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
EU Taxonomy
EU Taxonomy
H+H’s EU Taxonomy disclosure for
the annual reporting period of 2025
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 2025.
Reporting principles
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 finan-
cial 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 in 2025
by local sales departments which have in depth
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 66% 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). There is no material
development compared to last year, as activities
are unchanged. Revenue is defined as revenue
included in the consolidated financial statements
for the year 2025.
Taxonomy-eligible CAPEX
During our screening, we identified 55% 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-
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).
There is no material development compared to
last year, as activities are unchanged.
CAPEX is defined as additions of tangible assets
and intangible assets (excluding goodwill) as
included in the consolidated financial statements
for the year 2025, note 13 & 14.
H+H International | Annual Report 2025 | 69In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Taxonomy-eligible OPEX
During our screening, we identified 67% 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 2025. 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. There is no material
development compared to last year, as activities
are unchanged.
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.
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 sustain-
able under the taxonomy, it must fulfil the criteria
for not doing significant harm under the other envi-
ronmental 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
Other environmental objectives (2–6)
Do no significant harm
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
documentation 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
products and no accessories from other ven-
dors 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 biodi-
versity are part of our ISO 14001 and BES: 6001
certifications, ensuring that the generic criteria
for protection and restoration of biodiversity
are met
We believe that we do not do any significant harm, but we are working towards getting the necessary
documentation requirements such as an ISO 14001 certification.
√ Achieved in all regions √ Achieved in the UK
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.
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 Guide-
lines for Multinational Enterprises, the UN Guiding
Principles on Business and Human Rights and the
Declaration by the International Labour Organ-
ization. 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 sustain-
able activities (Taxonomy-non-aligned activities).
H+H International | Annual Report 2025 | 70In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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 (Taxonomy-non-aligned activities).
EU Taxonomy Disclosure
2025 Revenue CAPEX OPEX
Taxonomy-eligible activities 66% 55% 67%
Taxonomy-non-eligible activities 34% 45% 33%
Taxonomy-aligned acitvities 28% 17% 28%
Taxonomy-non-aligned acitvities 72% 83% 72%
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 in-
stallations 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 generation
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 2025 | 71In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial year 2025 2025 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")
Economic activities - Turnover (1)
Code (2)
Absolute turnover
(m DKK) (3)
Proportion of
turnover 2025 (%) (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, 2024
(%) (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 3.5 756 28% Y N/A N/A N/A N/A N/A N/A Y Y Y Y Y Y 27%
Turnover of environmentally sustainable activi-
ties (Taxonomy-aligned) 756 28% 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 27%
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 3.5 848 31% Y N/A N/A N /A N/A N/A N/A Y N/A N/A Y N/A Y 32%
Freight transport services by road CCM 6.6 201 7% 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 10%
Turnover of not-aligned activities 1,049 38% 42%
Turnover of taxonomy-eligible activities (A1+A2) 1,806 66% 69%
A. Taxonomy – Non-Eligible Activities
B. Turnover of non-eligible activities 937 34%
Total 2,743 100%
Quantitative breakdown of taxonomy-aligned turnover
The primary sources of turnover contributing to the numerator of the turnover KPI in 2025 are generation and sale of blocks and related accessories in the UK region (DKK 756 million)
EU Taxonomy – Turnover
H+H International | Annual Report 2025 | 72In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial year 2025 2025 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")
Economic activities - CAPEX (1)
Code (2)
Absolute CAPEX
(m DKK) (3)
Proportion of
CAPEX 2025 (%) (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, 2024
(%) (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 31 17% Y N/A N/A N/A N /A N/A N/A Y Y Y Y Y Y 20%
CAPEX of aligned activities 31 17% 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 57 31% Y N/A N/A N/A N/A N/A N/A Y N/A N/A Y N/A Y 32%
Freight transport services by road CCM 6.6 14 7% 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 10%
CAPEX of non-aligned activities 71 38% 42%
Total (A1+A2) 102 55% 62%
A. Taxonomy – Non-Eligible Activities
CAPEX of non-eligible activities (B) 83 45%
Total (A+B) 185 100%
No formal CAPEX-plan in relation to EU-taxonomy has been developed in 2025, but will be reassessed in 2026.
Quantitative breakdown of taxonomy-aligned CAPEX
The primary sources of CAPEX contributing to the numerator of the CAPEX KPI in 2025 are additions from tangible and intangible assests from the UK region (DKK 31 million)
EU Taxonomy – CAPEX
H+H International | Annual Report 2025 | 73In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial year 2025 2025 Sustainable contribution criteria DNSH criteria ("Does Not Significant Harm")
Economic activities - OPEX (1)
Code (2)
Absolute OPEX
(m DKK) (3)
Proportion of
OPEX 2025 (%) (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 elig-
ble (A.2.) OPEX, 2024 (%) (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 37 28% 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) 37 28% 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 40 31% Y N /A N/A N/A N /A N/A N/A N/A N/A N /A Y N/A Y 32%
Freight transport services by road CCM 6.6 10 7% 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 10%
OPEX of non-aligned activities 50 38% 42%
Total (A1+A2) 86 67% 63%
A. Taxonomy – Non-Eligible Activities
OPEX of non-eligible activities (B) 43 33%
Total (A+B) 130 100%
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 2025 are maintenance and repair costs from the UK region (DKK 37 million)
EU Taxonomy – OPEX
H+H International | Annual Report 2025 | 74In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Social information
List of material disclosure requirements Page reference
S1 – Own workforce
SBM-2 Interests and views of stakeholders Page 51
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business
model
Pages 75, 77, 82
S1-1 Policies related to own workforce* Pages 76, 78, 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 76, 78, 82
S1-5 Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Pages 76, 79, 82
S1-6 Characteristics of the undertaking’s employees Page 79
S1-7 Characteristics of non-employees in the undertaking’s own workforce Page 79
S1-8 Social dialogue Page 82
S1-9 Diversity metrics Page 81
S1-14 Health & Safety metrics Page 76
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
For S1.SBM-3 14e to 14g and 15-16 we do not assess to have any material impact
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.
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 raw materials which can be 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.
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
Health and Safety
ESRS 2 SBM-3 Material impacts, risks
and opportunities and their interaction
with strategy and business model
At H+H, we are firmly committed to ensuring
that every employee arrives at work safely
and returns home injury-free — every single
day. Working in an industrial plant comes with
inherent health and safety risks from the heavy
equipment and substances used in the produc-
tion process. Managing these risks effectively is
key to maintaining 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 described in S1-4.
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.
Production materials
While our finished products do not pose any
health risks, employees working in our plants can
In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2025 | 75Financial statements
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 related to H&S.
The Group Operational Director has overall respon-
sibility for the policy, while the regional Managing
Directors are responsible for implementation
within their countries as heads of their respective
legal entities. They are supported by the regional
Operations Directors, 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 2025
At the beginning of 2024, a new H&S strategy and
vision for 2024-2026, titled ZERO HARM, was
launched together with a major communications
campaign targeting all employees. The strategy
focuses on behavioural-based safety and on driving
safety through the line to embed a culture that
embraces safety across our operations, moving
towards our ambition of zero harm. In 2025, we
have continued this strategy with great success.
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,
communication is disseminated throughout the
organisation with follow-up on actions to prevent
reoccurrence.
To mitigate the risks associated with handling
production materials, we provide appropriate
personal protective equipment (PPE) and
regularly monitor exposure levels. In addition,
we design our work processes to be as safe as
possible so that technical and organizational
measures take priority, and the use of PPE is only
required in a few cases.
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 effec-
tiveness of our initiatives, performance on H&S
KPIs including absence and incidents is monitored
monthly and reported to Group Management.
In 2026 we plan to continue the focus on behav-
ioural based safety via training, communication
and lessons learned from incidents and high poten-
tial events. This includes training employees to
have a more proactive approach to spotting poten-
tial 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.
Resources allocated to manage material impacts
are the H&S community as well as above-de-
scribed actions.
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 2025 to highlight its importance.
Our target for 2030 is an LTIF rate of 2.1.
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 busi-
ness, we projected an improved H&S performance
to determine the specific KPI we want to reach
and when. The 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. All incidents
are shared and discussed within the regions
with those responsible and the health and safety
community in order to learn lessons and prevent
similar incidents in the future.
S1-14 Health and safety metrics
In 2025 we saw another record result with an LTIF
rate of 0.9, which is a satisfactory achievement.
We attribute our positive result to our continued
focus on leading in safety for all levels of opera-
tional management, behavioural safety and close
follow-up of incidents.
H+H International | Annual Report 2025 | 76In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
2025 2024 2023¹ 2022¹
Fatalities as a result of work-related injuries AND
work-related ill health
Headcount
0 0 0 0
Lost-time incident frequency (LTIF) Incidents per mil. hours 0.9 0.9 *3.4 3.6
Lost days to work-related injuries and fatalities
from work-related accidents, work-related ill
health and fatalities from ill health
Days
0 83 787 313
Total recordable incidents Headcount incidents 10 7 18 77
Total recordable contractor incidents Headcount incidents 0 0 0 3
Total recordable incident rate (TRIR) Incidents per mil. hours 4.3 3 7 25
Number of cases of recordable work-related ill
health
Number of cases
0 0 0
People in own workforce covered by H+H’s
H&S Management system
%
100% 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
opportunities 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
treatment 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 regard-
less of gender. This has an impact on our work-
force 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 sufficient data to determine whether
the impact is systemic or not but further
investigation is planned for 2026 in preparation
for the EU Directive 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 tradi-
tionally 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 indi-
vidual 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-em-
ployees (both self-employed people and people
provided by third party organisations) and
contractors. No material risks or opportunities
were identified in the materiality assessment.
H+H International | Annual Report 2025 | 77In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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
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 2025
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
H+H International | Annual Report 2025 | 78In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Germany Poland
United Kingdom Other
Headcount by country
additional actions have been planned for 2026.
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.
Resources allocated to manage material impacts
are the HR community.
S1-5 Targets
Group Management have decided to not set any
targets related to managing material negative
impacts, as we currently continue 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 Companies
Act, we aim to have equal gender distribution in
our Board of Directors, as defined by the Danish
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 3 males. A new formal
gender target under the law will be set if the
gender composition changes.
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
relevant at the time considering H+H's strategy,
challenges and opportunities. In addition to
looking at competences in the form of profes-
sional experience and education, the Board also
recognises the benefits of diversity in terms of
cultural background, gender, age etc. Currently,
the Board of Directors’ diversity in respect of age
could improve, hence if two candidates for a board
position are equally competent, the candidate
who is 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 Governance'.
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 environments
and low diversity among workers in our plants and
other non-office environments.
Due to the continued need for organisational stream-
lining following the downturn in the construction industry
our turnover rate remains high, however not as high
as 2023 (40%). We are however pleased to see that
our voluntary turnover ratio remains stable at 11%
compared to 12% last year, reflecting the regional
efforts to ensure good work-life balance and working
conditions.
Headcount by country 2025 2024
Germany 346 413
Poland 625 608
United Kingdom 277 228
Other 90 88
Total 1,338 1,337
Turnover Unit 2025 2024
Employee turnover ratio % 21% 22%
Employee turnover Headcount 284 280
346
625
277
90
H+H International | Annual Report 2025 | 79In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Headcount by gender 2025
Office workers Non-office workers Total
Male 155 976 1,131
Female 148 59 207
Other 0 0 0
Not reported 0 0 0
Total 303 1,035 1,338
2024
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
2025
Female Male Other Not disclosed Total
Number of employees 207 1,131 0 0 1,338
Number of permanent employees 206 1,130 0 0 1,336
Number of temporary employees 1 1 0 0 2
Number of non-guaranteed hours employees 0 0 0 0 0
Number of non-employees 0 0 0 0 0
2024
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
2025
CWE region HQ Poland
United
Kingdom Total
Number of employees 419 17 625 277 1,338
Number of permanent employees 419 17 625 275 1,336
Number of temporary employees 0 0 0 2 2
Number of non-guaranteed hours employees 0 0 0 0 0
Number of non-employees 0 0 0 0 0
2024
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
H+H International | Annual Report 2025 | 80In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
The CEO pay ratio, defined as the ratio of the
highest-paid individual to the median annual
total remuneration for all employees has slightly
decreased from 2024 to 2025. We attribute this
to the variable components of the CEO pay, as
described in the Remuneration Report.
“Annual total remuneration” is defined in the ESRS
as annual total remuneration to own workforce
includes salary, bonus, stock awards, option awards,
non-equity incentive plan compensation, change in
pension value, and nonqualified deferred compen-
sation earnings provided over the course of a year.
2025 2024
Gender pay gap (average) -17% -17%
CEO pay ratio 33 34
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 2025 2024
Below 30 10% 9%
Between 30 and 50 52% 51%
Above 50 38% 40%
S1-16 Remuneration metrics
During 2025 the gender pay gap, defined as the
difference of average pay levels between male
and female employees, remained unchanged
from -17% 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 composi-
tion of our workforce, where majority are non-of-
fice workers who are traditionally male and where
salaries are lower. Additionally, as we operate in
countries with materially 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 implementation of a Group job
architecture as preparation for the implementa-
tion of the EU directive on Pay Transparency. This
is planned for 2026.
S1-9 Diversity metrics
The underrepresented gender
in top management
2025 2024
Gender diversity, top
management (entire H+H
Group) 0% 0%
Females / total HC 0/5 0/6
H+H International | Annual Report 2025 | 81In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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. To enable this, we provide opportu-
nities to shape their work whenever 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:
Social dialogue
As employers we naturally have an impact on
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 cover 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
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.
Information on the protection of whistleblowers
and the Whistleblower Policy can be found in the
Governance Section.
S1-4 Actions
With the launch of our performance management
framework, we reached an important milestone in
the further development of our people strategy.
Following a successful pilot phase, the system
was progressively rolled out and now serves as a
key enabler of a more performance-driven, devel-
opment-oriented and future-ready organization.
The framework provides increased transparency
on organizatonal performance and talent poten-
tial, supporting a clear alignment between indi-
vidual contributions and our strategic business
objectives. In doing so, performance manage-
ment goes beyond performance measurement,
fostering a culture of continuous learning, devel-
opment and accountability.
In parallel with the rollout, the foundations for
a systematic evaluation of effectiveness were
established, enabling more data-driven workforce
and talent decisions going forward. In addition,
further initiatives were implemented in 2025
to address evolving working conditions and to
embed skills and capability development as a core
pillar of our transformation agenda.
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
H+H International | Annual Report 2025 | 82In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
our employees, there is currently no agreement
between H+H and a European Works Council (EWC),
a Societas Europaea (SE) Works Council, or a Soci-
etas Cooperativa Europaea (SCE) Works Council.
Majority of employees' working terms and employ-
ment conditions are decided directly between the
employee and the company and generally not by
collective bargaining agreements.
S1-17 Incidents, complaints and
severe human rights impacts
During 2025 (0 in 2024) there were no work-re-
lated incidents 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 severe human rights incidents (e.g.,
forced labour, human trafficking, or child labour)
were identified during 2025 (0 in 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%
H+H International | Annual Report 2025 | 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 (S2).
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 2025
• 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 of 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
• Employee representation in relation to Social
Dialogue is defined as representation by works
council, work environment organisation or
employee committees
• 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. Working hours is based
on actual time registrations as well as esti-
mates. The number reported includes own
workforce
Social accounting policy
H+H International | Annual Report 2025 | 84In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Governance information
Governance
information
List of material disclosure requirements Page reference
G1 - Business Conduct
GOV-1 The role of the administrative, management and supervisory bodies Pages 34-41, 85
G1-1 Business conduct policies and corporate culture Page 86
G1-3 Prevention and detection of corruption and bribery Page 86
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
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 52
(Poland) out of 182 countries in the Transparency
International Corruption Perceptions Index 2025.
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 foster a culture of integrity and trans-
parency. 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 can occur 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 can occur 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.
Protecting whistleblowers is integral to ensure fair
investigations and avoid retaliation. The impact
can occur 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
In briefContents Sustainability statementBusiness and strategy Results Governance H+H International | Annual Report 2025 | 85Financial statements
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 Group Operations Director is responsible for
the Code of Conduct for Suppliers and its imple-
mentation. Employees can access these policies
in H+H’s policy management 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
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.
H+H International | Annual Report 2025 | 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 business 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 64
Human Rights
Policy
Social The policy outlines our commitments to respect human rights. Read more on page 78
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 76
Anti-corruption
Policy
Governance The policy provides principles and information related to bribery, facilitation payments, donations, and entertainment and gifts. Read more on page 86
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 37
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
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
2025, 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 2025 (zero in 2024), no whistleblower
reports were found to be within scope. 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 2025 | 87In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Financial
statements
Consolidated financial statements 89
Notes to the consolidated
financial statements 93
Parent company financial statements 122
Statements 131
Contact information 140
H+H International | Annual Report 2025 | 88In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Consolidated financial statements
Consolidated financial statements
Income statement Statement of comprehensive income
Note (DKK million) 2025 2024
3,11 Revenue 2,743 2,747
4,11,17 Cost of goods sold (2,128) (2,168)
Gross profit before special items 615 579
4,11 Sales costs (120) (122)
4,11 Administrative costs (198) (209)
5 Other operating income and costs, net (6) 2
EBITDA before special items 291 250
6,11 Depreciation and amortisation (179) (187)
EBIT before special items 112 63
7 Special items, net (669) (22)
EBIT (557) 41
8 Financial income 45 39
9 Financial expenses (92) (109)
Result before tax (604) (29)
10 Tax (61) (21)
Result for the year (665) (50)
Result for the year attributable to:
H+H International A/S' shareholders (662) (53)
Non-controlling interest (3) 3
Result for the year (665) (50)
12 Earnings per share (EPS-Basic) (DKK) (40.3) (3,2)
12 Diluted earnings per share (EPS-D) (DKK) (40.3) (3,2)
Note (DKK million) 2025 2024
Result for the year (665) (50)
Other comprehensive income:
Items that will not be reclassified subsequently to the income statement:
20 Actuarial losses and gains 1 13
Tax on actuarial losses and gains (1) (5)
- 8
Items that may be reclassified subsequently to the income statement:
26 Fair value adjustments of derivative financial instruments - (13)
26 Gain/(loss) on derivative financial instruments transferred to the income statement 10 9
Tax of fair value adjustment (3) 1
Foreign exchange adjustments, foreign entities 6 20
13 17
Other comprehensive income after tax 13 25
Total comprehensive income for the year (652) (25)
H+H International | Annual Report 2025 | 89In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Balance sheet at 31 December
Note (DKK million) 2025 2024
Goodwill 173 422
Customer relations 81 143
Other intangible assets 65 77
13 Intangible assets 319 642
Land and buildings 556 707
Plant and machinery 594 689
Other equipment, fixtures and fittings 71 80
Assets under construction 155 240
14 Property, plant and equipment 1,376 1,716
15 Deferred tax assets 44 54
Investments in associated companies 2 2
Other non-current assets 46 56
Total non-current assets 1,741 2,414
17 Inventories 485 435
18 Trade receivables 110 113
18 Other receivables 56 39
Prepayments 11 10
Cash 166 462
14 Assets held for sale 84 -
Current assets 912 1,059
Total assets 2,653 3,473
Note (DKK million) 2025 2024
19 Share capital 165 165
Other reserves (69) (82)
Retained earnings 826 1,483
Equity attributable to H+H International A/S's shareholders 922 1,566
Equity attributable to non-controlling interests 81 84
Equity 1,003 1,650
20 Pension obligations 14 21
21 Provisions 35 43
15 Deferred tax liabilities 40 36
26 Lease liabilities 99 73
26 Deferred payments, acquisition of subsidiary 86 93
22 Credit institutions 841 1,046
Non-current liabilities 1,115 1,312
22 Credit institutions - -
Trade payables 231 272
26 Lease liabilities 28 25
Income tax 36 1
26 Deferred payment, acquisition of subsidiary 6 6
21 Provisions 44 26
Other payables 190 181
Current liabilities 535 511
Total liabilities 1,650 1,823
Total equity and liabilities 2,653 3,473
Assets Equity and liabilities
H+H International | Annual Report 2025 | 90In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Cash flow statement
Note (DKK million) 2025 2024
Operating profit (EBIT) (557) 41
6 Depreciation and amortisation 179 187
Change in inventories (95) 225
Change in receivables (28) 32
Change in trade payables and other payables 2 (50)
25 Non-cash adjustments 618 (156)
Operating activities before financial items and tax 119 279
8, 9 Financial items, net (41) (70)
Income tax paid (7) (64)
Operating activities 71 145
Sale of property, plant and equipment 2 205
Acquisition of enterprises and related deferred payments (7) (7)
14 Acquisition of property, plant and equipment and intangible assets (127) (124)
Investing activities (132) 74
Free cash flow (61) 219
22 Proceeds in borrowings - -
Bank overdraft and other debt (205) 140
Payment of lease liabilities (30) (32)
Dividend to non-controlling interest - (5)
Financing activities (235) 103
Cash flow for the year (296) 322
Cash at 1 January 462 139
Foreign exchange adjustments of cash - 1
Cash at 31 December 166 462
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 recognised 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, acquisi-
tions 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 and purchase and sale of treasury shares. 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 2025 | 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 2025 165 (10) (72) 1,483 1,566 84 1,650
Result for the year - - - (662) (662) (3) (665)
Other comprehensive income:
Foreign exchange adjustments, foreign entities - - 6 - 6 - 6
Actuarial gains/losses on pension plans - - - 1 1 - 1
Adjustments of derivative financial instruments - 10 - - 10 - 10
Tax on other comprehensive income - (3) - (1) (4) - (4)
Net gains recognised directly in equity - 7 6 - 13 - 13
Total comprehensive income - 7 6 (662) (649) (3) (652)
Share-based payment - - 5 5 - 5
Total changes in equity - 7 6 (657) (644) (3) (647)
Equity at 31 December 2025 165 (3) (66) 826 922 81 1,003
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
H+H International | Annual Report 2025 | 92In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated 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 and amortisation before special items 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 Costs of goods sold and inventories 108
18 Trade and other receivables 109
19 Share capital and treasury shares 110
20 Pension obligations 110
21 Provisions 114
22 Credit institutions 115
Notes - Supplementary information
23 Contingent liabilities 115
24 Auditors’ remuneration 116
25 Non-cash adjustments 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 2025 | 93In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
Notes - Financial statements
1 Material accounting policy information
The annual report for the period 1 January - 31 December 2025
comprises both the consolidated financial statements of H+H
International 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
2025 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 2025
on 3 March 2026. The annual report for 2025 will be submitted
to the shareholders of H+H International A/S for adoption at
the annual general meeting on 14 April 2026.
Basis of preparation
The annual report is presented in DKK, which is the parent
company’s functional currency, rounded to the nearest DKK 1
million. The annual report has been prepared using the histori-
cal cost principle.
The accounting policies are unchanged compared to last year.
Accounting policies have been applied consistently through-
out 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 2025
H+H International A/S has adopted all relevant new or revised
and amended International Financial Reporting Standards (IF-
RSs) and interpretations (IFRIC) issued by IASB and endorsed
by the EU effective for the financial year 2025. It is assessed
that they have not had a material impact on the consolidated
financial statement.
New accounting regulations
It is assessed that new, revised or amended IFRSs and interpre-
tations not yet in effect or adopted by EU as at 31 December
2025 will not have a material impact on the consolidated
financial statements.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18, which replaces IAS 1 Presentation of Financial State-
ments, introduces new presentation requirements related to
the income statement, including new categories of income and
expenses (i.e., operating, financing, investing). IFRS 18 requires
disclosure of management-defined performance measures and
includes new requirements for the aggregation and disag-
gregation of financial information. In addition, amendments
have been made to IAS 7 Statement of Cash Flows and other
standards.
The adoption of the standard is not expected to result in major
changes to existing accounting policies or to affect net result.
However, the introduction of new categories to the Income
statement is expected to require reclassification of certain
accounts and redefinition of our key financial measures.
IFRS 18 are expected to take effect on 1 January 2027 and will
be applied retrospectively.
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 state-
ments 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 International 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 subsid-
iaries’ financial statements, applying the H+H Group’s account-
ing policies. Intra-group income and expenses, shareholdings,
balances and dividends as well as realised and unrealised gains
arising from intragroup transactions are eliminated.
Equity investments in subsidiaries are offset against the pro-
portionate 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 recog-
nised in the consolidated 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. Trans-
actions in currencies other than the functional currency are
accounted for as transactions in foreign currencies.
On initial recognition, transactions denominated in foreign
currencies are translated into the functional currency at the
exchange rates at the transaction date. Foreign exchange dif-
ferences 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 statements 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 trans-
action date to the extent that this does not give a significantly
different view. Foreign exchange differences arising on trans-
lation 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 instruments 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.
H+H International | Annual Report 2025 | 94In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
Notes - Income statement
2 Significant estimates and judgements
Determining the carrying amounts of some assets and liabilities requires Management to make judgements, estimates and assump-
tions 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 estimate Nature of Impact of estimates Noteand judgementaccounting impactand judgements3 Segment information Aggregation of similar segments Judgement **13 Impairment testing of intangible assets Key assumptions in impairment test Estimate ***14 Impairment testing of property, plant Key assumptions in assessing the Estimate **and equipmentrecoverable amount of closed plants.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 relates to 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 transaction 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, 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”. The following
geographical areas in the Group represent more than 10% of revenue or non-current assets.(DKK million) 2025 2024Non- Non- current current Revenueassets RevenueassetsCentral Western Europe 987 958 1,030 1,626UK 877 311 871 336Poland 879 426 846 402Other, including headquarter - 46 - 50
2,743 1.741 2,747 2,414
When presenting information on geographical areas, information on revenue is based on countries except for “Central Western Europe”
which comprise of Germany, Switzerland, Denmark, Sweden, Czech Republic, Holland and Belgium. For Germany, revenue in 2025
amounts to DKK 527 million (2024: DKK 600 million) and non-current assets amount to DKK 691 million (2024: DKK 1,268 million). All
revenue relates to sales of goods and transport services.
Revenue in Denmark was DKK 160 million in 2025 (2024: DKK 151 million). Non-current assets in Denmark at year-end 2025 amounted
to DKK 62 million (2024: DKK 66 million).
AAC and CSU revenue amounted to DKK 2,119 million and DKK 624 million in 2025, compared to DKK 2,020 million and DKK 727
million in 2024. AAC products are sold across all segments, while CSU products are sold in CWE and Poland.
H+H International | Annual Report 2025 | 95In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
3 Segment information – continued
Key customers
One customer in the UK represented approx. 14% of the H+H Group’s total revenue in 2025 (2024: 15%).
Accounting policies
Revenue from contracts for goods recognised in the income statement when the customer obtains control. Revenue relating to trans-
port services 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 long-term 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 operating 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) 2025 2024Total Remuneration to Key Management Personnel – Executive Board and non-registred members of Executive Management*Salary 9.4 10.9Bonus 1.6 4.3Share-based payment** 2.5 2.9Pension 0.2 0.3Severance payment 4.2 -Total 17. 9 18.4
* Non-registered member of executive management are the Group Chief Operating Officer and Group Strategy Officer (until end of March 2024).
** Share-based payment comprise costs related to share programs for the years 2022 -2025 recognised in accordance with IFRS 2.
(DKK million) 2025 2024Wages and salaries 578 554Defined contribution plans, see note 20 6 6Share-based payment 5 2Remuneration to the Board of Directors 3 3Other staff costs 25 27617 592
Staff costs are recognised as follows:Cost of goods sold 354 309Sales costs 84 88Administrative costs 123 125Special items 53 46Employee costs recognised in fixed assets 3 24617 592
Average full-time equivalent staff 1,323 1,245
H+H International | Annual Report 2025 | 96In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
4 Staff costs – continued
(DKK million) 2025 2024Total Remuneration to Executive Board and Board of DirectorsExecutive Board 12.1 14.2Board of Directors 3.1 3.2Total 15.2 1 7.4
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 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 continuous 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 sala-
ry 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 2025, 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 initiation, a total of 108,400 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 days after the
release of the 2024 Annual Report on 4 March 2025, the theoretical value was DKK 111.3 per PSU, corresponding to a total theoretical
value of DKK 12.0 million for the 2025 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 2025 LTIP being in 2028 when the audited annual
report for 2027 is publicly announced.
In 2024 and 2023, 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 2022 PSU program were met, and as a result no shares vested in March 2025.
Overview of outstanding PSUs
Max. PSUs 2025 2024Outstanding 1 January 275,889 175,989Granted* 108,400 158,000Forfeited (8,650) (7,900)Vested* (43,589) (50,200)Outstanding 31 December 332,050 275,889
* Granted and vested based on maximum PSUs earned. Actual shares granted / vested are based on achieving certain financial, market and sustainability 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 calcu-
lating 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 2025, the Company had the following pending share programs with associated fair values:
Max. Shares/Expected Max. value Exp. value PSUs grantedto vest (DKK million)(DKK million)2023-programme, vesting in March 2026 77,200 46,320 7. 2 4.32024-programme, vesting in March 2027 150,950 55,852 14.1 5.22025-programme, vesting in March 2028 103,900 67,535 9.7 6.3
* Share price of DKK 93.10 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 time 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 recognised 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.
H+H International | Annual Report 2025 | 97In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
5 Other operating income and costs before special items
(DKK million) 2025 2024Other operating income:Gain on disposal of property, plant and equipment 2 2Rental income 6 8Other income 4 412 14
Other operating costs:Other costs (18) (12)(18) (12)Total (6) 2
Accounting policies
Other operating income and costs comprise items secondary to the Group's activities such as gain or loss on non-current assets,
rental income for sites or buildings owned by the Group and cost related to these sites and buildings.
6 Depreciation and amortisation before special items
(DKK million) 2025 2024Intangible assets 46 47Land and buildings 32 36Plant and machinery 71 74Fixtures and fittings, tools and equipment 30 30Total 179 187
Impairment of intangible and tangible assets in 2025 has been classified as special items, see note 7. No other impairments have been
recognised in 2025.
7 Special items, net
(DKK million) 2025 2024Impairment of mothballed and closed factories (272) -Impairment of other idle assets related to closed plants (40) -Impairment of goodwill, customer relations and other intangible assets (300) -Restructuring costs (57) (68)Gain from sale of Warsaw site - 156Unfavorable part of gas hedges - (110)Total (669) (22)
Impact of special items on EBITCost of goods sold (67) (131)Sales costs (14) (19)Administrative costs (16) (28)Other operating income and costs, net - 156Depreciation, amortisation and impairments (572) -Total (669) (22)
H+H International | Annual Report 2025 | 98In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
7 Special items, net – continued
As a result of the prolonged 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 income
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 potential buyers, expert assessments 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 equip-
ment used in production, buildings and other related idle assets. The carrying value of the impaired assets are presented as assets held
for sale in the balance sheet.
Moreover, the intangible assets related to our CWE region was reviewed for possible impairment need, i.e. if the given asset still have
any use for H+H or whether the future cash flows (recoverable amount) 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). The carrying value of the
Customer Relations and Other Intangibles impacted by the re-organisation amounts to zero. See note 13 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 57 million has been recognised as special items and comprise directly associated costs to the German re-organisation includ-
ing costs related to termination of employees. The restructuring has now been completed.
Special items in 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 and expense of DKK 110 million and restructuring costs of DKK 68 million off set by gain on sale of
Warsaw land of DKK 156 million.
Accounting policies
Special items include individually significant and non-recurring events and include items such as 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 recognised and measured in accordance with the relevant accounting policy an IFRS accounting standards, 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
performance.
8 Financial income
(DKK million) 2025 2024Interest income 45 39Total 45 39
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) 2025 2024Interest expenses 69 92Interests expense, leases 7 7Interest expenses on financial items 76 99
Financial expenses relating to pension plans; see note 20 1 2Foreign exchange rate adjustments 6 1Other financial expenses 9 7Total 92 109
Accounting policies
Financial expenses comprise interest expenses on debt measured at amortised cost, past service costs, capital losses, recirculation of
cumulative translation differences of entities disposed of, payables and transactions in foreign currencies, and amortisation of financial
liabilities, including finance lease obligations etc.
H+H International | Annual Report 2025 | 99In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
10 Tax
(DKK million) 2025 2024Tax for the year 61 21Tax on other comprehensive income 4 4Total 65 25Total tax can be broken down as follows:Current tax for the year 46 67Adjustment relating to changes in tax rate 4 (4)Adjustment of deferred tax 10 (48)Reversal of previously recognised deferred tax assets 10 -Prior-year adjustments (5) 10Total 65 25Tax for the year can be broken down as follows:Calculated 22.0% (2024: 22.0%) tax on income from ordinary activities (133) (7)Adjustment of calculated tax relative to 22.0% rate (2024: 22.0%) (5) (19)Tax effect of: Reversal of previously recognised deferred tax assets 10 -Unrecognised deferred tax assets 175 40Change in tax rate 4 (4)Non-deductible expenses/non taxable income 15 1Prior year adjustment (5) 10Total 61 21
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 recognised in the income statement, and the portion that can be attributed to items in other comprehensive income or directly in
equity is recognised 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 expense, 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 ap-
proach 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 2025 | 100In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
10 Tax – continued
Country-by-country key figures - IFRS
2025Revenues from Property, intragroup plant and Balance Corporate Revenues transactions equipment of intra-income tax Number of Total employee from third-with other tax and company paid on a (DKK million)employeesremunerationparty salesjurisdictionsinventorydebtcash basisDenmark 43 69 160 - 29 (88) -UK 271 151 877 - 407 118 2Germany 342 191 527 216 739 - -Poland 624 175 879 5 539 (16) (1)Switzerland 24 21 127 - 142 (2) 5Holland 9 5 103 - 2 (22) 1Sweden 4 3 21 - 3 10 -Czech Republic 6 2 49 - - - -Total 1,323 617 2,743 221 1,861 - 7
Current tax explanation on country level
2025Non-taxable Calculated local income and non-tax using Group deductible Other (DKK million)tax rate (22%) costs, netadjustments Deferred tax Current taxDenmark 187 (145) (51) 9 -UK (12) - 6 6 -Germany 3 130 (135) 1 1Poland (41) - 4 (3) 40Switzerland (5) - 2 (2) 5Holland 1 - - (1) -Sweden - - - - -Czech Republic - - - - -Total 133 (15) (174) 10 46
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. Depreciation, 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) 2025 2024Revenue 2,743 2,747 Cost of goods sold (2,309) (2,417)Gross profit including depreciation, amortisation and special items 434 330Sales costs (170) (186)Administrative costs (243) (261)Other operating income 12 170Other operating costs (18) (12)Impairment (572) -EBIT (557) 41Depreciation and amortisation comprise:Amortisation of intangible assets (46) (47)Depreciation of property, plant and equipment (133) (140)Total (179) (187)Depreciation and amortisation are allocated to:Cost of goods sold (114) (118)Sales costs (36) (45)Administrative costs (29) (24)Total (179) (187)Special items are allocated to:Cost of goods sold (67) (131)Sales costs (14) (19)Administrative costs (16) (28)Other operating items - 156Impairment (572) -Total (669) (22)
H+H International | Annual Report 2025 | 101In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
Notes - Balance sheet
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 materi-
als 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)
2025 2024Average number of shares 16,500,000 16,500,000Average number of treasury shares (162,049) (162,049)Average number of shares in circulation 16,337,951 16,337,951Average number of restricted shares 162,049 162,049Average number of outstanding shares, diluted 16,500,000 16,500,000Result for the year (DKK million) (665) (50)Attributable to non-controlling interest (3) (3)Shareholders in H+H International A/S (DKK million) (662) (53)Earnings per share (EPS) (DKK) (40.3) (3.2)Diluted earnings per share (EPS-D) (DKK) (40.3) (3.2)
See calculation principle in financial ratios on page 121.
13 Intangible assets
2025Customer Other intangi-(DKK million) Goodwillrelationsble assets TotalTotal cost at 1 January 2025 452 364 155 971Foreign currency translation adjustments 1 1 - 2Transfer - - - -Additions during the year - - 22 22Disposals during the year - - (7) (7)Total cost at 31 December 2025 453 365 170 988Total depreciation and amortisation at 1 January 2025 (30) (221) (78) (329)Foreign currency translation adjustments - (1) - (1)Amortisation for the year - (30) (16) (46)Impairment for the year (250) (32) (18) (300)Amortisation of disposals - - 7 7Total amortisation and impairment losses at 31 December 2025 (280) (284) (105) (669)Carrying amount at 31 December 2025 173 81 65 319
2024Customer Other intangi-(DKK million) Goodwillrelationsble assets TotalTotal cost at 1 January 2024 452 363 129 944Foreign currency translation adjustments - 1 - 1Transfer - - 14 14Additions during the year - - 12 12Disposals during the year - - - -Total cost at 31 December 2024 452 364 155 971Total depreciation and amortisation 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
H+H International | Annual Report 2025 | 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 operating segments are the lowest level of groups of CGUs to which the
carrying amount of goodwill can be allocated.
2025 2024DKK DKK Cash-generating units and related goodwill Year of originmillionmillionPoland 2003 23 23UK N/A - -Central Western Europe 2006/18/19/20/21 150 399Total 173 422
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. As of 30 June 2025, due to the pro-longed period with low
market activity in Germany Management assessed that impairment indicators for the CWE region existed, and as such an impairment
test was carried out using the same principles as for the annual impairment tests described below. The impairment test concluded an
impairment need of DKK 250 million for goodwill which was recognised as special items in the income statement. The result was driven
by change in expectations as described in the key assumptions for the annual impairment test.
The impairment test as of 31 December 2025 for each of the CGU concluded that no further impairments are needed.
Key assumptions
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 exists and Management be-
lieves 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 2026 and financial forecasts for the years 2027-2030
for all CGUs. Overall, the markets are expected to remain at the activity level of 2025 throughout 2026 and 2027, and then a balanced
pick-up in especially the CWE region from 2028 and onwards. It is Management assessment, that the plants permanently closed in
2025 and the ongoing asset sale program in CWE should not negatively affect the expected future cash inflows to be generated from
the CGU’s as the remaining plants within each of the CGUs has sufficient capacity to supply existing markets both on short, mid- and
long term. Other assumptions are mainly based on historic trends as well as Management’s best estimate and external benchmark
data. 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').
2025 2024Poland CWE Poland CWE Carrying amount of intangible assets, property, plant and equip-ment at 31 December 2025 (DKK million) 394 763 372 1,223Goodwill (DKK million) 23 150 23 399Estimated average annual growth in revenue 2026-2030 (CAGR) 2.8% 3.7% 4.8% 9.3%Estimated average annual growth / decrease in gross margin in percentage points 2026-2030 (0.8)% 1.4% (0.4)% 2.7%WACC before tax 14.3% 11.0% 14.7% 12.2%WACC after tax 11.6% 8.6% 11.9% 8.8%
The weighted average growth rate used for the terminal period for the years after 2030 has been estimated at 2.0% (2024: 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 markets of the individual CGUs.
Management lowered its expectations for revenue growth in the forecasting period for CWE to an average growth of 3.7% (previously
9.3%) mainly driven by high uncertainty about the recovery of volumes sold in the short and mid-term. Beyond 2028 the market is
expected to start to pick-up.
For the CWE region, the gross margin has been estimated to increase for the period 2026-2030 coming from a low base due to the
challenged German economy and consequently a pro-longed period with low market activity. The increase in gross margin assumes an
increase in plant utilisation driven by increased in volumes sold in combination with increase in plant efficiency in line with the HOME
programme. Poland's capacity adjustment made in 2023 along with government incentives and lowered interest rates has resulted in a
gross margin above expectations for 2024 and 2025 and consequently we expect a slight decrease during the forecast period.
The Polish market continued to be broadly stable in 2025, though the overall building activity towards the end of the year has been
lower than in 2024. Management expects the volumes to be rather stable in the forecasting period but that inflation can be forwarded
to the customers and therefore a decent annual growth of 2.8% (previously 4.8%).
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 2025 | 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
The results of the goodwill impairment tests are impacted by the key assumptions outlined on previous page.
For both impairment tests change in gross margin of 0.5%-point or a change in revenue growth of 1.0%-point impacts the results by
approximately DKK 60 million in enterprise value. A change of WACC after tax or terminal period growth of 0.5%-point impacts the
result by approximately DKK 70 million in enterprise value. Neither of these changes would result in any impairment need.
Based on sensitivity analyses, it is Management’s opinion that no reasonable change in any key assumptions would cause the carrying
amounts of CGUs to exceed the recoverable amount as at 31 December 2025.
Accounting policies
Goodwill is recognised initially in the balance sheet at cost. Subsequent to initial recognition, goodwill is measured at cost less
accumulated impairment 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 organisa-
tional 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.
Impairment losses are recognised in the income statement under depreciation and amortisation. Impairment losses relating to good-
will 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. Cus-
tomer 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,
amortisation and other expenses attributable to the H+H Group’s development activities and interest expenses on loans to finance de-
velopment 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 other intangible assets
Significant accounting estimates relates to determining key assumptions of the impairment test in its whole. In preparing the impair-
ment test, a range of significant accounting estimates are made, i.e., determining future cash flows, identifying CGU’s, determining
growth rates in respectively 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 2026 approved by the Board of Directors and financial forecasts for the years 2027-
2030 for all CGUs. Assumptions are based on historic trends as well as external benchmarked data. Local conditions, such as expected
development in macroeconomic and market conditions, are considered. All assumptions are challenged and verified by management.
H+H International | Annual Report 2025 | 104In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
14 Property, plant and equipment
-
2025Property, Other plant and equipment, equipment Land and Plant and fixtures and under con-(DKK million)buildingsmachineryfittingsstruction TotalTotal cost at 1 January 2025 1,391 2,633 338 240 4,602Foreign currency translation adjustments - (18) - (5) (23)Transfers 5 35 97 (137) Additions, including right-of-use assets 25 42 39 57 163Disposals during the year (3) (44) (17) - (64)Transferred to assets held for sale (161) (363) (144) - (668)Total cost at 31 December 2025 1,257 2,285 313 155 4,010Total depreciation and amortisation at 1 January 2025 (684) (1,944) (258) - (2,886)Foreign currency translation adjustments - 13 - - 13Depreciation for the year (32) (71) (30) - (133)Impairment for the year (62) (96) (114) - (272)Depreciation of disposals - 44 16 - 60Transferred to assets held for sale 77 363 144 - 584Total depreciation and impairment losses at 31 December 2025 (701) (1,691) (242) - (2,634)Carrying amount at 31 December 2025 556 594 71 155 1,376Right-of-use assets included asAdditions 23 - 37 - 60Disposals (2) - (4) - (6)Depreciation (6) - (22) - (28)Impairment for the year (4) - (2) - (6)Depreciation of disposals 1 - 4 - 5Carrying amount at 31 December 79 - 51 - 130
Assets held for sale comprise of closed plants, which are expected to be sold within 2026 as part of the asset disposal programme.
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)Transferred to assets held for sale - - - - -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)Impairment for the year - - - - -Depreciation of disposals 47 73 23 - 143Transferred to assets held for sale - - - - -Total 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
H+H International | Annual Report 2025 | 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 30 million (2024: 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 (2024: DKK 0 million). At 31 December 2025 the Group was
committed to short-term and low value leases for an amount of DKK 1 million (2024: DKK 1 million).
Accounting policies
Land and buildings, plant and machinery, fixtures and fittings, and tools and equipment are measured at cost less accumulated depre-
ciation 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 divided 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 resid-
ual 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.
Assets are transferred to assets held for sale if it is highly probable that their carrying amount will be recovered primarily through sale
rather than through continuing use.
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 assets. 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
recognised 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.
Significant accounting estimates
Impairment testing of property, plant and equipment
Significant accounting estimates relates to determining the recoverable amount of closed plants and related land. When determining
the recoverable amount Management has assessed the market value less cost to sell. The estimates are made based on public compa-
rable transactions, historically sales prices, expected land values and initial discussions with potential buyers.
H+H International | Annual Report 2025 | 106In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
15 Deferred tax
(DKK million) 2025 2024Deferred tax at 1 January 18 (23)Prior years adjustments 8 (10)Foreign exchange adjustments 2 (1)Effect of change in tax rate (4) 4Change in deferred tax (10) 48Valuation of tax asset (10) -Deferred tax at 31 December 4 18(DKK million) 2025 2024Deferred tax relates to:Non-current assets (65) (85)Current assets 1 (1)Liabilities 10 17Tax loss carry-forwards 58 87Total 4 18Breakdown of deferred tax and recognition in the balance sheet:Deferred tax assets 44 54Deferred tax liabilities (40) (36)Total 4 18
The tax value of loss carry-forwards has been recognised as deferred tax assets in the companies where, based on budget and
forecasts, it is considered likely that this can be utilised in future earnings. A tax value of loss carry-forwards of DKK 155 million at 31
December 2025 (2024: DKK 73 million) has not been recognised as deferred tax assets, as these are not considered likely to be uti-
lised, especially given the current macro-economic environment. The carry-forward losses, which does not have an expiry date, relate
to Germany, Denmark and Sweden.
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.
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 acqui-
sition 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 judgement of the likely date and size of future tax loss carry-forwards.
H+H International | Annual Report 2025 | 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 Ownership (voting rights) 51% 51% 53%Principal place of business Dresden, Germany Laussnitz, Germany Hohen Wangelin, GermanyFinancial information (DKK million) 2025 2024 2025 2024 2025 2024Revenue 100 100 64 90 120 103Result for the year (5) (7) (4) 4 7 10Cash flow from operating activities 16 6 9 10 17 21Dividend paid to non-controlling interest - - - 5 - -Total assets 120 141 57 114 130 122Non-current liabilities 57 73 16 27 28 26Current liabilities 7 7 7 9 21 4Accumulated non-controlling interest 27 15 37 37 26 29
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) 2025 2024Raw materials and consumables 139 144Finished goods and goods for resale 346 291Total 485 435Write-downs recognised in the inventories above have developed as follows:Write-downs at 1 January 30 35Write-downs for the year 45 2Realised during the year (45) (5)Reversals - (2)Total 30 30Cost of goods sold comprised (before special items):Direct production costs 1,286 1,320Wages and salaries 354 309Production overheads 253 211Distribution 230 326Write-downs for the year 5 2Total 2,128 2,168
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 over-
heads comprise indirect materials and labor as well as maintenance and depreciation of the machinery, plant buildings and equipment
used in the production process, and the cost of plant 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 2025 | 108In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
18 Trade and other receivables
(DKK million) 2025 2024Trade receivables, gross 150 149Write-downs (3) (2)Rebates and bonus (37) (34)Other receivables 56 39Total 166 152
Other receivables include receivables from rent deposits, VAT, other indirect taxes etc. Other receivables fall due within one year of the
balance sheet date.
(DKK million) 2025 2024Age analysis of trade receivables (gross):Not past due 131 1290-30 days 16 1631-90 days 2 291-180 days - 1Over 180 days 1 1Total trade receivables 150 149Write-downs relating to receivables, year-end 3 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
counterparties 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 2025.
(DKK million) 2025 2024Write-downs of receivables:Write-downs at 1 January 2 2 Write-downs for the year 1 0 Realised during the year 0 0 Reversals - -Write-downs relating to receivables at 31 December 3 2
Accounting policies
Receivables are measured at amortised cost, which in all material respects corresponds to the nominal value less a loss allowance
equal expected 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 meas-
ured at amortised cost.
H+H International | Annual Report 2025 | 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 million2025 2024 2025 2024Share capital at 1 January 16,500,000 16,500,000 165 165Movements - - - -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 Author-
ity.
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 cancellation 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 millionyear-endHolding at 1 January 2024 162,049 1.62 1%Purchased during the year - - -No movements - - -Holding at 31 December 2024 162,049 1.62 1%Purchased during the year - -No movements - - -Holding at 31 December 2025 162,049 1.62 1%
All the treasury shares are owned by H+H International A/S and 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 14 million (2024: DKK 21 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 2025, the actuarial valuation of the defined benefit plan in the UK showed a net asset of DKK 24 million (GBP 2.8
million), 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. As the last core contribution was paid on 28 February 2025 the value recognised as future contri-
butions amounts to DKK 0 million compared to a net liability DKK 12 million in 2024.
In the consolidated income statement, an amount of DKK 6 million (2024: 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 (2024:
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.
H+H International | Annual Report 2025 | 110In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
(DKK million) 2025 2024Pensions and similar obligations: Present value of fully or partly funded defined benefit plans 501 541Fair value of plan assets 494 533(Surplus)/Deficit 7 8Present value of unfunded defined benefit plans recognised in the balance sheet 7 8Future committed pension contribution (UK) - 5Net obligation recognised in the balance sheet 14 21Development in present value of defined benefit obligation:Obligation at 1 January 549 581Foreign exchange adjustments (22) 23Calculated interest on obligation 26 25Service costs 1 1Gains/losses as a result of changes in economic assumptions (13) (55)Gains/losses as a result of changes in demographic assumptions - (4)Empirical changes 1 1Pension paid by employees 4 4Pension paid (38) (27)Obligation at 31 December 508 549Breakdown of the present value of defined benefit obligation:Present value of fully or partly funded defined benefit obligations 501 541Present value of unfunded defined benefit obligations 7 8Obligation at 31 December 508 549
20 Pension obligations – continued
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 (life-
time 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 longevity. H+H Celcon Pension Fund is supervised by an independent corporate trustee, H+H Celcon Pension Fund Trustee Limit-
ed. 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 take 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 ran until to 28 February 2025 and during the year H+H UK Limited paid the core contri-
butions 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 2025 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.
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Notes to the consolidated financial statements
20 Pension obligations – continued
(DKK million) 2025 2024Development in fair value of plan assets:Plan assets at 1 January 533 522Foreign exchange adjustments (24) 23Calculated interest income 26 23Return on plan assets over and above the calculated interest 2 (35)The Group's contributions to plan assets 7 30The employee's contributions to plan assets 4 4Value of derecognised plan assets (17) (7)Pensions paid (37) (27)Plan assets at 31 December 494 533Pension costs relating to the current financial year, recognised as staff costs:Pension costs relating to defined contribution plans 7 6Total pension costs 7 6Financial costs relating to the defined benefit plans for the current year:Calculated interest on obligation (26) (24)Calculated interest on plan assets 26 23Net interest on defined benefit plans - (1)Pension costs recognised in other comprehensive income:Gains/losses as a result of change in economic assumptions 16 56Gains/losses as a result of change in demographic assumptions 1 5Return on plan assets over and above the calculated interest 2 (35)Future committed pension contribution / value of derecognised assets (17) (12)Changes due to empirical changes (1) (1)Total 1 13
The cost has been recognised in the income statement under staff costs; see note 4. Costs recognised under production costs amount
to DKK 4 million (2024: DKK 3 million), costs recognised under sales and distribution costs amount to DKK 2 million (2024: DKK 2
million) and costs recognised under administrative costs amount to DKK 1 million (2024: DKK 1 million).
(DKK million) 2025 2024Plan assets can be broken down as follows:Liability Driven Investment* 154 170Global equities* 179 190Bonds* 131 133Alternatives 48 44Cash 6 3Value of derecognised plan assets (24) (7)Total 494 533
* All plan assets in the UK, DKK 470 million (2024: DKK 496 million), are investments held in LGIM funds, which in turn invest directly
in highly rated assets that are traded on a stock exchange.
Alternatives relate to the Swiss pension plan of DKK 48 million (2024: DKK 44 million) and includes assets with no quoted market
price.
(DKK million) 2025 2024Return on plan assetsActual return on plan assets 28 (12)Calculated interest on plan assets 26 23Actuarial gain (loss) on plan assets 2 (35)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.) 5.6% 5.5% Expected inflation rate 3.1% 3.3% Members’ life expectancy from retirement age (years) 22.3 22.9
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Notes to the consolidated financial statements
20 Pension obligations – continued
Sensitivity analysis
The table below shows the sensitivity of the 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) 2025 2024Sensitivity relative to discount rate:If the discount rate falls by 0.5 percentage point, the pension obligation will increase by 31 32Sensitivity relative to inflation rate:If the inflation rate increase by 0.5 percentage point, the pension obligation will increase by 13 14Sensitivity relative to life expectancy from retirement age:If the life expectancy from retirement age increases by 1 year, the pension obligation will increase by 18 19
The Group expects to pay DKK 3 million into the defined benefit pension plan in 2026 (2025: DKK 7 million).
(DKK million) 2025 2024The pension obligation is expected to fall due as follows:0-1 year 3 71-5 years 16 12Over 5 years 22 24Total 41 43
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. Obli-
gations relating 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 bene-
fit 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 assump-
tions comprise the discount rate, inflation rate, estimated return on plan assets, future salary increases, mortality and future develop-
ments 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) 2025 2024Provisions at 1 January 69 38Provisions for the year 78 54Utilised during the year (66) (23)Reversals during the year (2) -Provisions at 31 December 79 69Breakdown of the provisions at 31 December:Warranty obligations 1 1Obligations relating to restoration of sites 29 28Restructuring and other employee related provisions 41 23Other provisions 8 17Total 79 69Expected maturity of provisions:Non-current liabilities 35 43Current liabilities 44 26Total 79 69
H+H’s subsidiaries provide normal warranties in respect of products supplied to customers. The provision for warranty obligations
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 2025, 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 con-
structive 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 obliga-
tion.
In connection with the measurement of provisions, the costs required to settle the obligation are discounted to net present value if this
has a material 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 warran-
ty 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.
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
Notes - Supplementary information
22 Credit institutions
(DKK million) 2025 2024Bank loans, non-current 842 1,048Bank loans, current - -Amortised borrowing costs (1) (2)Total 841 1,046
Change in borrowings from financing activities:
(DKK million) 2025 2024Borrowings 1 January 1,047 908Change in proceeds - -Bank overdraft and other debt (205) 140Borrowings 31 December 842 1,048
Change in lease liabilities:
(DKK million) 2025 2024Lease liabilities 1 January 98 119Cash flows (30) (32)New/disposed/remeasured lease 57 10Foreign exchange adjustments 1 1Lease borrowings 31 December 126 98
Maintenance of the 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. Conse-
quently, 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 (2024: DKK 2
million) has been recognised in the consolidated income statement for 2025 in respect of operating leases and rental obligations.
Financial guarantee
Subsidiaries drawdowns at 31 December 2025 amounts to DKK 633 million (2024: DKK 823 million).
In addition, hereto, third party guarantees provided by H+H International A/S and its subsidiaries amounts to DKK 46 million at 31
December 2025 (2024: DKK 45 million).
Other
The H+H Group is not a party of any material legal proceedings.
H+H International | Annual Report 2025 | 115In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
24 Auditors’ remuneration
(DKK million) 2025 2024Total fees for H+H International A/S's auditors elected at the annual general meeting:Fee 4.4 5.0Total 4.4 5.0The total fee can be broken down as follows:Statutory audit 3.5 3.5Other assurance engagements 0.9 1.5Tax and VAT services - -Other services 0.0 0.0Total 4.4 5.0
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 0.9 million in 2025 (2024: DKK 1.5 million), relating to assurance
services on sustainability matters and other advisory services.
25 Non-cash adjustments
(DKK million) 2025 2024Impairment of assets and inventory write down 609 -Gain / loss on sale of assets (1) (158)Other non-cash adjustments 10 2Total 618 (156)
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 aimed 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 major-
ity of customers 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
payments within the group 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 for-
eign 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. None were entered in 2025.
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 H+H Hedging Policy, primarily by entering into fixed price agreements with suppliers for a shorter timeframe or passing devel-
opment in energy prices on to the customers. No fixed price agreements exceeding 12 months from the time of entering the contract
are allowed.
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. None interest hedges were entered in 2025.
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 com-
H+H International | Annual Report 2025 | 116In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
pany 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.
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 reduc-
es 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 or business partner. 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 sub-
ject to covenants related to debt leverage, defined as adjusted net interest-bearing debt (NIBD) divided by 12 months rolling adjusted
EBITDA and an interest cover defined as adjusted net interest-bearing debt (NIBD) divided by 12 month rolling net interest paid. The
covenants are tested and reported end of each quarter until the maturity of the facility. The Group fulfilled all financial covenants in
2025. In February 2026, an amendment was made to the H+H Group's bank agreement reflecting the current market conditions and
provide the H+H Group with reasonable financing allowing H+H Group to focus on long-term value creation. The covenants are expect-
ed to be fulfilled in 2026. The total net debt to Nordea as of 31 December 2025 amounts to DKK 684 million.
Monetary items in foreign currency
2025(DKK million) EUR GBP PLN Others Total DKK TotalTrade receivables 3 37 37 19 96 14 110Other receivables 45 - 7 2 54 2 56Cash 38 43 49 21 151 15 166Trade payables (35) (121) (57) (5) (218) (13) (231)Other payables (67) (17) (59) (53) (196) 6 (190)Deferred payment (92) - - - (92) - (92)Credit institutions (56) (32) - (2) (90) (751) (841)Gross exposure (164) (90) (23) (18) (295) (727) (1,022)Net exposure (164) (90) (23) (18) (295) (727) (1,022)
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)
Sensitivity of result and equity to market fluctuations
(DKK million) 2025 2024Result Equity Result Equity5% increase in GBP/DKK 2 16 (3) 145% increase in PLN/DKK 8 38 13 4310 54 10 57
26 Financial instruments and financial risks – continued
H+H International | Annual Report 2025 | 117In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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 decrease in result 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 exposure
2025 2024Net Weighted Net Weighted interest- time to interest- time to bearing Interest Net maturity bearing Interest Net maturity (DKK million)debthedged positionof hedgingdebthedged positionof hedgingDKK 744 - 744 - 776 - 776 -EUR 49 - 49 - 254 - 254 -PLN 14 - 14 - (211) - (211) -CHF (12) - (12) - (28) - (28) -GBP 14 - 14 - (101) - (101) -Other (7) - (7) - (8) - (8) -Total 802 - 802 - 682 - 682 -
The table above illustrates H+H’s interest rate exposure on financial instruments at the balance sheet date. At 31 December 2025, 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 2025 would reduce result for the year before tax and
equity by DKK 8 million (2024: DKK 9 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) 2025Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 yearsNon-derivative financial instrumentsCredit institutions and banks 841 28 879 -Lease liability 127 25 53 122Deferred payment 92 7 27 68Trade payables 231 231 - -Other payables 190 190 - -Total 1,481 481 959 190
(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 - -Total 1,696 513 1,162 107
H+H International | Annual Report 2025 | 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 31 December 2025, H+H did not have any derivative financial instruments (2024: None). H+H Group enters on regular basis in
fixed price and volume agreement with energy suppliers. All contracts entered in 2024 and 2025 met the 'own use exemption' and
consequently recognised in the income statement as incurred.
No assets or liabilities are measured at fair value as of 31 December 2025 (2024: None), and thus no assets or liabilities are measured
at level 1, 2 or 3 in the fair value hierarchy.
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 calculat-
ed 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
recognised in the income statement upon realisation 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 realisation 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 recog-
nised in other comprehensive income. Gains and losses relating to such hedging transactions are transferred from other comprehen-
sive income to the income statement upon realisation of the hedged item or when the hedge relationship is no longer effective. Chang-
es in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognized in the income statement.
Categories of financial instruments
2025 2024Carrying Fair Carrying Fair (DKK million)amountvalueamountvalueTrade receivables 110 110 113 113Other receivables 56 56 39 39Cash 166 166 462 462Total financial assets measured at amortised costs 332 332 614 614Credit institutions and banks 841 841 1,046 1,046Trade payables and other payables 422 422 453 453Total financial liabilities measured at amortised cost 1,263 1,263 1,499 1,499Total financial instruments, net 931 931 885 885
H+H International | Annual Report 2025 | 119In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the consolidated financial statements
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.
H+H International | Annual Report 2025 | 120In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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 bsi
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-bearing debt
EBITDA bsi
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 acquisi-
tions 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 de-
ducted by provisions and operating non-current liabilities.
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 2025 | 121In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Parent company financial statements
Income statement 123
Statement of comprehensive income 123
Balance sheet at 31 December 124
Statement of changes in equity 125
Cash flow statement 125
Notes to the parent company financial statements
1 General accounting policies 126
2 Significant accounting estimates and judgements 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 risk 129
14 Related parties 130
15 Events after the balance sheet date 130
Parent company
financial statements
H+H International | Annual Report 2025 | 122In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Income statement Statement of comprehensive income
Note (DKK million) 2025 2024
3, 4 Administrative costs (62) (65)
14 Other income 58 64
EBITDA before special items (4) (1)
Depreciation and amortisation (9) (6)
EBIT before special items (13) (7)
Special items (4) (3)
EBIT (17) (10)
5 Financial items (1,029) (257)
Result before tax (1,046) (267)
6 Tax (11) -
Result for the year (1,057) (267)
Result for the year attributable to:
H+H International A/S' shareholders (1,057) (267)
Result for the year (1,057) (267)
Note (DKK million) 2025 2024
Result for the year (1,057) (267)
Other comprehensive income after tax - -
Total comprehensive income for the year (1,057) (267)
H+H International | Annual Report 2025 | 123In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Balance sheet at 31 December
Note (DKK million) 2025 2024
Intangible assets 40 37
7 Intangible assets 40 37
Office lease, cars and equipment 6 2
8 Property, plant and equipment 6 2
9 Deferred tax assets - 11
10 Equity investments in subsidiaries 978 1,660
13 Receivables from subsidiaries 633 1,072
Other non-current assets 1,611 2,743
Total non-current assets 1,657 2,782
13 Receivables from subsidiaries 101 92
Other receivables and prepayments 2 5
Cash 56 233
Current assets 159 330
Total assets 1,816 3,112
Note (DKK million) 2025 2024
Share capital 165 165
Retained earnings 247 1,301
Equity 412 1,466
11 Lease liabilities 5 1
11 Credit institutions 782 968
Non-current liabilities 787 969
Trade payables 5 5
11 Lease liabilities 1 1
13 Payables to subsidiaries 591 660
Other payables 20 11
Current liabilities 617 677
Total liabilities 1,404 1,646
Total equity and liabilities 1,816 3,112
Assets Equity and liabilities
H+H International | Annual Report 2025 | 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 2025 165 1,301 1,466
Result for the year (1,057) (1,057)
Share-based payment - 3 3
Total changes in equity - 3 3
Equity at 31 December 2025 165 247 412
Equity at 1 January 2024 165 1,565 1,730
Result for the year (267) (267)
Share-based payment - 3 3
Total changes in equity - 3 3
Equity at 31 December 2024 165 1,301 1,466
Note (DKK million) 2025 2024
Operating profit (EBIT) (17) (10)
Depreciation, amortisation and impairment 9 6
Change in receivables (7) (17)
Change in trade payables and other payables 8 (1)
Other non-cash adjustments 3 3
Operating activities before financial items and tax (4) (19)
5 Financial items, net (12) 8
Operating activities (16) (11)
Change in borrowings to subsidiaries (258) 57
Capital increase in subsidiaries (1) (5)
10 Dividend from subsidiaries 294 44
7 Acquisition of equipment and intangible assets (10) (11)
Investing activities 25 85
Free cash flow 9 74
11 Proceeds in borrowings - -
Bank overdraft and other debt (186) 132
Payment of lease liabilities (1) (1)
Purchase of treasury shares - -
Financing activities (187) 131
Cash flow for the year (178) 205
Cash at 1 January 233 33
Foreign exchange adjustments of cash 1 (5)
Cash at 31 December 56 233
H+H International | Annual Report 2025 | 125In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
1 General accounting policies
The financial statements of H+H International A/S for 2025 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 2025, with the following addi-
tions:
• 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 therefore 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 2 of the consolidated financial statements.
3 Staff costs and remuneration
The Remuneration of the Board of Directors 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) 2025 2024
Wages and salaries 36 42
Share-based payment 3 3
Other staff costs 1 1
40 46
Staff costs are recognised as follows:
Administrative costs 36 43
Special items 4 3
40 46
Average full-time employees 18 20
Total Remuneration:
Remuneration to the Executive Board 12 14
Remuneration to the Board of Directors 3 3
15 17
4 Auditors remuneration
(DKK million) 2025 2024
Total fees to the auditors elected at the annual general meeting:
Statutory audit 1.3 1.2
Other assurance engagements 0.9 1.3
Other services - -
Total 2.2 2.5
H+H International | Annual Report 2025 | 126In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
5 Financial items
(DKK million) 2025 2024
Interest income from subsidiaries, net 4 33
Dividend from subsidiary 294 44
Write-down of investment in subsidiaries* (1,311) (302)
Interest expenses, net (13) (26)
Foreign exchange rate adjustments, net 1 (5)
Other financial expenses (4) (1)
Total (1,029) (257)
* Relates to subsidiaries in Germany and Sweden. See note 10 for details.
6 Tax
(DKK million) 2025 2024
Current tax for the year - -
Adjustment of deferred tax (11) -
Total (11) -
Current joint taxation contribution for the year - -
Tax for the year can be broken down as follows:
Calculated 22.0% (2024: 22.0%) tax on income from ordinary activities (230) (59)
Tax effect of:
Non-deductible expenses/non taxable income 189 59
Unrecognised tax losses 41 -
Change in tax valuation of tax losses (11) -
Total (11) -
H+H International A/S is taxed jointly with all its Danish subsidiaries. The current Danish income tax is allocated among the jointly
taxed companies 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 jointly taxed companies for contingent liabilities. The Danish companies are further jointly and severally liable for joint
registration of VAT.
7 Intangible assets
Intangible assets recognised in the parent company comprises mainly software.
(DKK million) 2025 2024
Total cost at 1 January 46 35
Additions during the year 10 11
Total cost at 31 December 56 46
Total amortisation at 1 January (9) (4)
Amortisation for the year (7) (5)
Total amortisation at 31 December (16) (9)
Carrying amount at 31 December 40 37
8 Property, plant and equipment
Property, plant and equipment of DKK 6 million (2024: DKK 2 million) comprised office leases, cars and equipment.
Lease liabilities and interest relating to recognised lease contracts are included in note 11.
9 Deferred tax
(DKK million) 2025 2024
Deferred tax at 1 January 11 11
Change in deferred tax (11) -
Deferred tax at 31 December - 11
A tax value of loss carry-forwards of DKK 51 million at 31 December 2025 (2024: DKK 0 million) has not been recognized as deferred tax assets, as
these are not considered likely to be utilized within the next 3-5 years. The carry-forward losses does not have an expiry date.
In addition, 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 (2024: 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 contributors payable and receivable are recognised in the
balance sheet under receivables from/payables to subsidiaries.
H+H International | Annual Report 2025 | 127In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
10 Investments in subsidiaries
(DKK million) 2025 2024
Acquisition cost at 1 January 2,029 1,299
Additions 629 730
Disposals - -
Cost at 31 December 2,658 2,029
Impairment losses at 1 January (369) (67)
Write-down for the year (1,311) (302)
Reversal of previous write-down - -
Impairment losses at 31 December (1,680) (369)
Carrying amount at 31 December 978 1,660
As part of the restructuring of the German business, an intercompany receivable of DKK 629 million from H+H Deutschland GmbH
were converted to equity, and therefore transferred from an intercompany receivable to investments in subsidiaries.
Impairment tests of investment in subsidiaries are performed at the end of 2025 for investment in subsidiaries when impairment
indications exist. The recoverable amount of investments in subsidiaries subject to impairment testing as of 31 December 2025 is
based on the value in use, which has been determined using expected net cash flows based on estimates for the years 2026-2030 and
a WACC after tax of 8.6% (2024:8.8%). The weighted average growth rate used for expected future net cash flows for the years after
2030 has been estimated at 2.0% (2024: 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 for CWE, cf. Note 13 in the in the consolidated financial statements.
Based on the impairment test 2025 an impairment loss of DKK 1,311 million has been recognised relating to the investments in
H+HDeutschland GmbH (DKK 1,253 million) and H+H Sverige AB (DKK 58 million). The impairment in H+H Deutschland is driven by
partly the internal re-financing converting debt to equity and the market conditions in the German markets as described in Note 13 for
the impairment test of CWE. Similar, the impairment of the investment in H+H Sverige AB is driven by the market conditions within the
European constructuion industry. In addition, the penetration of the Swedish housing market has not materialised and the Swedish
buillding sector remained a small aircrete market compared to timber.
2025 2024
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
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
* 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.
**** Merged with H+H Nordics A/S per 15 December 2025
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 impairment 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 2025 | 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) 2025 2024
Bank loans, non-current* 784 970
Amortised borrowing costs (2) (2)
Total 782 968
Change in borrowings from financing activities:
(DKK million) 2025 2024
Borrowings 1 January 968 836
Change in proceeds - -
Bank overdraft (186) 132
Borrowings 31 December 782 968
Change in lease liabilities:
(DKK million) 2025 2024
Lease liabilities 1 January 2 3
Cash flows (1) (1)
New/disposed/remeasured lease 5 -
Lease borrowings 31 December 6 2
* See note 26 in the consolidated financial statements for details of the bank loan.
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 Danmark, 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*
2025 2024
Position Sensitivity Position Sensitivity
(DKK million)
Financial
instruments
Net
exposure
Currency
rate
change
Effect
on profit
(loss)
before tax
Hypo-
thetical
impact on
equity
Financial
instruments
Net
exposure
Currency
rate
change
Effect
on profit
(loss)
before tax
Hypo-
thetical
impact on
equity
EUR/DKK 485 5% 24 19 750 5% 37 29
GBP/DKK (77) 5% (4) (3) (80) 5% (4) (3)
PLN/DKK (329) 5% (16) (13) (228) 5% (11) (9)
79 442
* The 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 2025 | 129In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Notes to the parent company financial statements
13 Financial instruments and risk – continued
H+H international A/S is exposed to foreign currency risk primarily through intercompany balances and cash pool balances denomi-
nated in currencies other than DKK. The most significant exposures relate to PLN, EUR, and GBP. Currency risk is managed in accord-
ance with the parent company’s hedging policy.
The sensitivity analysis in the table shows the effect of changes in currency rate, assuming a change at 31 December. A positive expo-
sure represents a net asset position; a negative exposure represents a net liability.
Based on the parent company’s net interest-bearing debt, an increase of 1 percentage point per year in the interest rate level relative to
the average interest rate level in 2025 would reduce result for the year before tax and equity by DKK 8 million (2024: DKK 9 million).
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) 2025
Financial instruments: Carrying amount 0-1 year 1-5 years Over 5 years
Non-derivative financial instruments
Credit institutions and banks 782 33 830 -
Payables to subsidiaries 591 593 - -
Lease liability 6 1 5 2
Trade payables 5 5 - -
Other payables 20 20 - -
Total 1,404 652 835 2
(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 subsidiaries 660 660 - -
Lease liability 2 1 2 -
Trade payables 5 5 - -
Other payables 11 11 - -
Total 1,646 706 1,004 -
14 Related parties
A management fee totalling DKK 58 million (2024: DKK 64 million) was received by the parent Company from the remainder of the
Group.
15 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 International A/S’s financial position.
H+H International | Annual Report 2025 | 130In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Statements 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 2025.
The consolidated financial statements and the parent company financial statements has been prepared in
accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure
requirements for listed companies.
It is our opinion that 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 2025
and of the results of the Group’s and the parent company’s operations and cash flows for the financial year
1 January – 31 December 2025.
In our opinion, the management’s review includes a fair review of the development in the parent compa-
ny’s and the Group’s operations and financial conditions, the results for the year and the parent compa-
ny’s financial position, and the position as a whole for the entities included in the consolidated financial
statements, as well as a description of the more significant risks and uncertainty factors that the parent
company and the Group face.
Additionally, the sustainability statement, which is part of Management’s review, has been prepared, in all
material respects, in accordance with paragraph 99a 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 section titled "Double materiality assessment". Furthermore, disclosures within the
section "EU taxonomy" are, in all material respects, in accordance with Article 8 of EU Regulation 2020/852
(the “Taxonomy Regulation”). The sustainability statement includes forward-looking statements based on
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.
In our opinion, the annual report of H+H International A/S for the financial year 1 January to 31 December
2025 with the file name HH-2025-12-31-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, 3 March 2026
Executive Board
Jörg Brinkmann Bjarne Pedersen
CEO CFO
Board of Directors
Miguel Kohlmann Peter Thostrup
Chair Vice chair
Volker Christmann Kajsa von Geijer Helen MacPhee
H+H International | Annual Report 2025 | 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 2025 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 2025 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 2025 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) as applicable to audits
of financial statements of public interest entities, 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 four years including the financial year 2025.
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 2025. 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 2025 | 132In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Key audit matter How our audit addressed the key audit matter
Revenue recognition
Revenue is measured at fair value of the consideration
agreed exclusive of VAT and duties and after deduction
of quantum rebates and customer bonus.
We focused on revenue recognition because revenue is
the most significant financial statement line item, con-
sists of a large number of IT-dependent transactions
and measurement of revenue includes management
estimates regarding provisions for quantum rebates
and customer bonuses.
Consequently, there is a risk that the estimates includ-
ing methods, applied data or assumptions made by
Management are inaccurate.
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
applicable IFRS Accounting Standards, including disclo-
sure requirements.
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. For relevant controls we assessed whether
they were designed and implemented to effectively ad-
dress the risk of material misstatement.
For controls, on which we planned to rely, we tested
whether these controls were operating effectively.
We analysed revenue transactions and identified transac-
tions that did not follow the usual or expected transaction
pattern. On a sample basis we tested the transactions to
the underlying contractual basis.
We tested revenue recognition on a sampling basis to
underlying evidence for consistency with terms and
conditions of the underlying customer contracts. Further,
we selected a sample of transactions at year-end and
traced these to underlying evidence to determine whether
recognised in the correct period.
We reviewed Management’s calculations for quantum
rebates and customer bonuses, including the evaluation
of Management’s applied methods, assumptions and data
for preparing the estimates.
Key audit matter
Impairment of non-current assets
In 2025, Management identified indicators of im-
pairment in respect of various non-current assets,
including property, plant and equipment (“production
assets”), customer relationships, other intangible as-
sets and goodwill. This followed the strategic decision
to reorganise the Group’s German operations, which
was driven by persistently low market volumes and the
lack of anticipated recovery in the short- to mid-term.
On this basis, Management has initially conducted
impairment tests for the individual production asset
cash-generating units (CGU). Subsequently, an impair-
ment test was performed for the operating segment
Central Western Europe, addressing the remaining
carrying amount of production assets, customer
relationships, other intangible assets and goodwill
for the group of CGUs. These assessments resulted
in recognition of impairment losses for production
assets, customer relationships, other intangible assets
and goodwill.
For the impairment tests related to closed production
asset CGUs, Management has determined the recover-
able amount as the fair value less cost of disposal. The
fair value less cost of disposal for each closed produc-
tion asset CGU is determined based on anticipated
sale or re-use by applying historical data from previous
plant closures, external land value sources, and letters
of intent received from potential buyers. Determination
of fair value as well as costs of disposal is associated
with significant estimation uncertainty.
For the impairment tests related to continuing produc-
tion asset CGUs, Management has determined the re-
coverable amount as the, value in use. The value in use
for each continuing production asset CGU has been
determined based on Management’s assumptions
regarding expected cash inflows and outflows which
are discounted using appropriate discount rates.
Subsequently, Management has conducted an im-
pairment test for the group of CGUs containing the re-
maining carrying amount of closed production assets,
production assets for continuing plants, customer
relationships, other intangible assets and goodwill.
Value in use has been determined based on Manage-
ment’s assumptions regarding expected cash inflows
and outflows which are discounted using appropriate
discount rates.
The value in-use impairment tests involve significant
estimates particularly in relation to the determination
of revenue, gross margin and terminal growth rates as
well as discount rates (WACC).
We focused on this area because the impact on the
profit for the year is significant, and because the
impairment tests of non-current assets are considered
complex non-routine transactions and require signif-
icant judgment in determining the assumptions etc.
applied in the significant estimates.
Reference is made to notes 13 and 14 in the Consoli-
dated Financial Statements.
H+H International | Annual Report 2025 | 133In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Statement on Management’s Review
Management is responsible for Management’s Review (pp 4-87).
Our opinion on the Financial Statements does not cover Management’s Review, and we do not as part of
the audit 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.
We challenged both the impairment models applied
by Management for continuing production assets and
the group of CGUs constituting the operating segment
Central Western Europe and tested the mathematical
accuracy of the relevant value-in-use impairment tests.
Furthermore, we challenged the data and significant
assumptions, including growth rates and discount rates
(WACC). In assessing the discount rate (WACC) and the
overall methodology applied, we involved our valuation
specialists.
We assessed the appropriateness and tested the relat-
ed disclosures provided in the Consolidated Financial
Statements, including the sensitivity analysis, express-
ing the significant estimation uncertainty related to the
valuation of the CGU’s.
Impairment of non-current assets (continued)
As part of our audit, we considered the appropriateness
of the CGUs defined by Management and the method-
ology used by Management to assess the recoverable
amount of property, plant and equipment as well as
customer relationships, other intangible assets and
goodwill assigned to the production asset CGUs and the
group of CGUs, hence the operating segment Central
Western Europe.
We carried out risk assessment procedures in order
to obtain an understanding of business processes and
relevant controls regarding data and assumptions used
in the impairment tests. For the controls, we assessed
whether they were designed and implemented to effec-
tively address the risk of material misstatement.
We challenged the fair value less costs of disposal
model for valuation of closed production asset CGUs,
including the expected possibilities for sale or re-use
of assets as well as documentation for the expected
market prices and costs used in the assessment of fair
value less costs of disposal.
How our audit addressed the key audit matter
H+H International | Annual Report 2025 | 134In 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
2025 with the filename HH-2025-12-31-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 2025 | 135In 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
2025 with the file name HH-2025-12-31-en.zip is prepared, in all material respects, in compliance with the
ESEF Regulation.
Hellerup, 3 March 2026
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
H+H International | Annual Report 2025 | 136In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
A
nders Stig Lauritsen
State Authorised
Public Accounta nt
mne32800
P
o
ul P. Petersen
S
ta
t
e
Authoris
ed
P
ublic
Accounta nt
mne34503
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 47-87, for the
financial year 1 January – 31 December 2025.
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 the section “Description of the processes to
identify and assess material impacts, risks and opportunities”
• compliance of the disclosures in the section “EU Taxonomy” 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, imple-
ment and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory requirements.
Other Matter
The comparative information with a footnote for 2023 and 2022 included in the Sustainability Statement of
the Group was not subject to an assurance engagement. Our conclusion is not modified in respect of this
limitation of scope.
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
the section “Double Materiality Assessment” of the Sustainability Statement. This responsibility includes:
H+H International | Annual Report 2025 | 137In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
• understanding the context in which the Group’s activities and business relationships take place and
developing an understanding of its affected stakeholders;
• the 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;
• the assessment of the materiality of the identified impacts, risks and opportunities related to sustaina-
bility 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 the section “EU Taxonomy” 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
• the 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 the section in section “Double Materiality Assessment”.
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
• 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,
H+H International | Annual Report 2025 | 138In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
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 section “Double Materiality Assess-
ment”.
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 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.
Hellerup, 3 March 2026
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 33 77 12 31
H+H International | Annual Report 2025 | 139In briefContents Sustainability statementBusiness and strategy Results Governance Financial statements
Anders
S
tig
Lauritse
n
State Authorised
Public Accountant
mne32800
P
o
ul
P
.
Petersen
S
ta
t
e
Au
thoris ed
Public Accounta nt
mne34503
Contact information
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
North Gate
ul. Bonifraterska 17
00-203 Warszawa
Poland
Tel.: +48 22 51 84 000
www.HplusH.pl
H+H International | Annual Report 2025 | 140In 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
Design and production: Noted
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