CHIEF EXECUTIVE OFFICER JÖRG BRINKMANN QUOTE

"As expected, it was a challenging start to the year with very low newbuild activities across our markets. In response to the current market environment, we have adjusted our shift patterns and have also decided to accelerate the optimisation of our factory network, which will involve closing three factories in Germany and two in Poland. Following recent investments in our factories, we have sufficient capacity for both present and future needs, which puts us in a favourable position for when the market improves. Despite uncertain market conditions and an expected challenge at the start of the year, we maintain the financial outlook for the full year, as we still expect the market to continue to improve during the year".
 

• Sales volume (thousand cubic metres) decreased by 42% to 634 (1,087)
• Revenue decreased by 27% to DKK 641 million (DKK 874 million). Revenue growth measured in local currencies ("organic growth") was negative 25% (positive 29%)
• Gross profit before special items was DKK 154 million (DKK 244 million), corresponding to a gross margin of 24% (28%)
• EBIT before special items was DKK 21 million (DKK 110 million), corresponding to an EBIT margin before special items of 3% (13%)
• Net profit of DKK (7) million (DKK 72 million)
• Free cash flow was DKK (309) million (DKK (63) million)
• Financial gearing was 1.4 times EBITDA at the end of Q1 2023 (0.7 times EBITDA at the end of Q1 2022)

FINANCIAL HIGHLIGHTS FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2023

DKK million Q1 2023 Q1 2022
Sales volume (thousand cubic metres) 634 1,087
Revenue 641 874
Organic growth (25)% 29%
Gross margin before special items 24% 28%
EBITDA before special items 72 159
EBIT before special items 21 110
EBIT margin before special items 3% 13%
Special items (9) (10)
Return on Invested Capital (ROIC) 15% 21%
NIBD/EBITDA before special items ratio 1.4x 0.7x
Free cash flow (309) (63)

FINANCIAL OUTLOOK FOR 2023

• Revenue growth measured in local currencies is expected to be around 0%
• EBIT before special items is expected to be in the range of DKK 330 million to DKK 400 million

• Sales volumes expected to decrease around 10-15% in aggregate mainly driven by Poland
• Exchange rates, primarily GBP, EUR and PLN remain at end-April 2023 levels

Q1 2023 INTERIM FINANCIAL REPORT CONFERENCE CALL

In connection with the release of the Q1 2023 Interim Financial Report, a conference call for investors and analysts is scheduled for Wednesday 10 May 2023, at 10:00 a.m. CEST. On the call, Chief Executive Officer ("CEO") Jörg Brinkmann and Chief Financial Officer ("CFO") Peter Klovgaard-Jørgensen will present the interim financial report. The presentation will be followed by a Q&A session. Investors and analysts are invited to participate via phone (PIN code: 275042):

DK: +45 78768490
UK: +44 203 769 6819
US: +1 646 787 0157

• Other participants can follow the conference call via live webcast here (https://hh-international.eventcdn.net/events/financial-report-q1-2023).
• The presentation slides for the conference call will be made available beforehand here (https://www.hplush.com/presentations).
• A replay of the conference call will be available afterwards on H+H's Investor Relations website here (https://www.hplush.com/presentations).