Company announcement 31/2022

Today, HusCompagniet A/S ("HusCompagniet") has closed the agreement to acquire prefabricated (prefab) factory from NVV GmbH and JAWS Holding ApS ("Danhaus") announced on 22 April 2022.

The factory is one of the most well-automated factories in the Nordics and entering this part of the supply chain in Denmark will further strengthen HusCompagniets strategic ambitions. Prefab is especially well suited for more sustainable semi-detached new-builds such as DGNB-certified projects while the high building quality is maintained. Further, prefab production supports efficient building time and with the newly acquired factory, HusCompagniet can secure production in our growing semi-detached segment and mitigate supply chain challenges both within subcontractors as well as certain materials.

• The transaction represents an enterprise value on a cash and debt free basis of DKK 90 million.
• The acquisition is financed through existing revolving credit facility
• The factory is acquired including existing orderbook of around DKK 200 million
• The factory will support the increasing production demand and amplify HusCompagniets increasing market shares in the semi-detached segment 
• With different initiatives the capacity is expected to increase to approximately 800 units, thus the factory can produce all semi-detached units
• The production will meet the requirements for sustainable building such as DGNB-certified buildings
• Automation and benefits obtained between our Swedish factory and the newly acquired factory
• In-house factory production mitigates supply chain challenges both within subcontractors as well as certain materials

The acquisition will be presented in the financials for 2022 as a separate segment and integrated in semi-detached segment in 2023 with adjusted comparable figures.

Due to the delayed closing, 2022 expected revenue from the factory is expected to be around DKK 50-80 million (previously around DKK 100million) with an expected break-even EBITDA result (unchanged). This does not affect overall Group guidance.

Factory acquired

The factory is in Esbjerg, Jutland in Denmark and constitute approx. 12,000 sqm. The factory currently produces around 400 units a year. HusCompagniet will be able to deliver nationwide in Denmark and will by scale and optimisation be able to utilise maximum capacity with an expected production capacity of up to 800 units a year in a more streamlined production.

The factory currently employs 51 blue collar workers and 21 white collar workers The blue-collar workers are mainly unskilled labour and prefab production can therefore mitigate future expected scarcity and bottlenecks in the market of subcontractors.

In connection with the acquisition, HusCompagniet has secured a land plot adjacent to the factory of approximately 24,000 sqm from the municipality of Esbjerg.

Strategic rationale

Danhaus has a factory for prefab products, which is unique in Denmark as "in situ" (on-site) build in the normal way of building versus most of continental Europe where prefab is the norm.

Acquiring the factory will be a great strategic opportunity for our semi-detached segment. Especially as the larger pension and real estate funds are focused on sustainability. We believe it also supports our efforts in making sustainable building more efficient and cost effective and thereby driving the sustainability agenda. Another driver is the increasingly difficulty finding qualified craftsmen, as the factory mainly employs unskilled labour.

We believe HusCompagniet can benefit from learnings of our Swedish factory and the newly acquired factory and drive efficient production with scale benefits.

For additional information, please contact:

HusCompagniet

Mads Dehlsen Winther, CFO

Cristina Rønde Hefting, Head of IR & Press                                                            +45 51 96 23 14

Information on HusCompagniet

HusCompagniet is a leading provider of single-family detached houses in Denmark. The company also builds semi-detached houses to both private consumers and professional investors and has a presence in Sweden where it produces prefabricated wood-framed detached houses through its VårgårdaHus brand.

The Group operates an asset-light and flexible delivery model with on-site building, primarily on customer-owned land. The construction is outsourced to subcontractors, allowing for a flexible cost base. In 2021, HusCompagniet generated revenue of approximately DKK 4.3 billion.

HusCompagniet delivered 1,831 houses in 2021, of which 1,441 were detached houses in Denmark, corresponding to a market share of approximately 24% of the Danish detached-house new-build market segment. HusCompagniet has 16 offices with showrooms in Denmark and Sweden and more than 60 show houses and offers digital sales through the online platform "HusOnline". HusCompagniet currently has more than 400 employees.

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