H+H reorganises its German operations and adjusts its financial outlook for the full year 2025

CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE "Despite significant improvement efforts over the past two years, our German operations continue to weigh heavily on the overall performance of the Group. Excluding the impact ofGermany, H+H delivered double-digit EBIT-% in H1 which is close to our long-term financial targets. However, the persistently low-volume environment in the German market, combined with intensified competition and pricing...

COPENHAGEN, Denmark, 29/07/2025 (informazione.news - comunicati stampa - information technology)

Despite significant improvement efforts over the past two years including savings of approximately DKK 200 million in SG&A and IPC, market conditions in Germany remain difficult, with residential construction operating well below historical levels. As the short- and mid-term outlook does not show signs of improvements, we update our outlook for 2025. Organic growth is now expected to be around 4% from previously 5-10% and EBIT before special items is now projected within the range of DKK 100 -150 million, down from the previous estimate of DKK 120 -180 million. Our cash and covenant positions remain strong.

In Poland , performance remains stable and on track. Although building permits are declining, the pipeline for the remaining part of the year looks stable. In the UK, we are seeing strong demand coming through, with all plants now operating 24/7 being the primary driver of earnings improvement in the second half of 2025.

We are reorganising our German operations from national coverage to a regional setup. This allows us to run stronger market focused units, improve margins and operate on a lower cost base with less FTEs. We expect restructuring costs in the range of DKK 80 -100 million (special items in H2 2025). This will lead to savings of around DKK 20 million in H2 2025.

The reorganisation also includes closure of plants and write-down of assets. As a consequence, the Q2 2025 report will contain impairment of assets of around DKK 600 million . The impairment will be treated as special items in the Q2 2025 report and has no cash impact. This will lead to lower depreciation of around DKK 30 million on a full-year basis (around DKK 15 million in H2 2025). In addition, we will initiate a strategic review of the German activities with a clear target to further enhance group profitability.

CEO Jörg Brinkmann and CFO Bjarne Pedersen will host a Teams call.

You can join in two ways:

: [ ]

•  Meeting ID: 356 245 838 379

•  Passcode: 5vb2gd6W

:

•  Dial: +45 32 72 52 23

���  Phone Conference ID: 669 016 614#

Niclas Bo Kristensen
Head of Investor Relations & Treasury
+45 24 48 03 67
Nbk@hplush.com

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