Investor Presentation August 2025 2Q2025 Disclaimer This presentation contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions but instead represent only the Company's beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company's control. These forward-looking statements reflect the Company's current views with respect to, among other things, the Company's financial pe ...

Summary of H+H International (HH) Update / Briefing July 30, 2025 Company Overview - **Company**: H+H International (HH) - **Industry**: Building materials, specifically focusing on the German market Key Points and Arguments 1. **Market Conditions in Germany**: The German market is experiencing very low volumes, with building starts at historically low levels, leading to a negative impact on the company's results and necessitating a change in outlook [2][5][29] 2. **Price and Volume Dynamics**: Initial expectations for price increases did not materialize, resulting in lost market share and unsustainable pricing levels, which negatively affected margins [4][12] 3. **Reorganization Strategy**: The company plans to reorganize its operations in Germany from a nationwide coverage to a regional business setup, creating six profit centers to improve efficiency and reduce costs [7][19][20] 4. **Restructuring Costs**: The reorganization will incur restructuring costs in the second half of the year, with an expected cash outflow of 80 to 100 million Danish kroner [25] 5. **Impairment of Assets**: The company will take significant impairments on fixed and intangible assets, including a write-off of 250 million Danish kroner on goodwill due to the loss-making status of the German business [26][27] 6. **Financial Performance**: The company reported flat organic growth and adjusted its full-year outlook down to around 4% due to price deterioration in the German market [12][29] 7. **Regional Market Focus**: The new regional setup aims to enhance customer relationships and operational efficiency, allowing the company to better respond to local market demands [20][62] 8. **Long-term Market Potential**: Despite current challenges, the company views Germany as an important market with potential for future growth, emphasizing the need for market consolidation [60][62] 9. **Comparative Performance**: Other regions, such as the UK and Poland, are performing better, with the UK showing strong demand and capacity utilization improvements [13][71] Additional Important Content 1. **Strategic Review**: A strategic review of the business will be conducted to explore options for long-term profitable growth, including potential joint ventures or market consolidation [11][24][62] 2. **Cash Flow Neutrality Goal**: The immediate goal for the German operations is to achieve cash flow neutrality, with a focus on reducing cash drain from the business [10][50] 3. **Market Recovery Expectations**: There is skepticism about a quick recovery in the German market, with expectations for slight growth in the coming year not justifying the current operational setup [37][41] 4. **Capacity Utilization**: The company maintains that while capacity has not changed, there is significant room for improvement in utilization, especially as market conditions improve [66][69] This summary encapsulates the critical insights from the conference call, highlighting the challenges faced by H+H International in the German market and the strategic steps being taken to address these issues.

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Core Viewpoint - Associated Banc-Corp (ASB) reported better-than-expected quarterly performance, with Q2 2025 earnings of 65 cents per share, surpassing the Zacks Consensus Estimate of 62 cents, although down from 74 cents in the prior-year quarter [1][8]. Financial Performance - Net income available to common shareholders was $108.4 million, a decrease of 4% from the year-ago quarter, exceeding the estimate of $101.9 million [2]. - Total revenues for the quarter were $371.2 million, a 14% year-over-year increase, beating the Zacks Consensus Estimate of $362.8 million [3]. - Net interest income (NII) rose to $300 million, up 17% year-over-year, with a net interest margin of 3.04%, an increase of 29 basis points [3][8]. - Non-interest income was $67 million, a 3% increase, slightly above the estimate of $66.8 million [4]. Expense and Efficiency - Non-interest expenses increased by 7% to $209.4 million, closely aligning with the estimate of $209.2 million [4]. - The efficiency ratio improved to 55.81%, down from 59.51% in the prior-year quarter, indicating enhanced profitability [4]. Loan and Deposit Trends - Total loans as of June 30, 2025, were $30.6 billion, a 1% increase from the prior quarter, slightly below the estimate of $30.8 billion [5]. - Total deposits declined by 3% to $34.1 billion, underperforming the estimate of $34.4 billion [5]. Credit Quality - The provision for credit losses was $18 million, down 22% from the prior-year quarter, slightly above the estimate of $16.3 million [6]. - Total non-performing assets decreased by 9% to $148.2 million, and total non-accrual loans fell by 27% to $113 million [6]. Capital Ratios - The Tier 1 risk-based capital ratio improved to 10.77%, up from 10.27% in the corresponding period of 2024 [9]. - The common equity Tier 1 capital ratio rose to 10.20%, compared to 9.68% previously [9]. Future Outlook - Management expects loans to grow at a rate of 5-6% and total core customer deposits to rise by 4-5% [10]. - NII growth is now projected to be in the range of 14-15%, an increase from the previous guidance of 12-13% [10]. - Total non-interest income is expected to rise by 1-2%, a change from the previous outlook of stability or 1% growth [11].

Core Viewpoint - Dorel Industries Inc. is undergoing a strategic shift to reduce the size of its Home segment, aiming for profitability by 2026 through a streamlined product line and the cessation of domestic manufacturing operations in North America [2][6][12] Business Operations Update - The Home segment will focus on profitable categories and eliminate unprofitable product lines, with a significant reduction in inventory planned by year-end [7][8] - Dorel Home is merging its sales, marketing, and product development with the successful Cosco division, transferring select high-performing SKUs to enhance efficiency [3][4] - The decision to cease manufacturing in North America is supported by an external review, expected to yield substantial savings and eliminate losses from domestic operations [6][12] Financial Performance - The restructuring is anticipated to improve earnings by the fourth quarter of 2025, with detailed cost and savings estimates to be provided in the upcoming earnings release [9] - Dorel Juvenile continues to show year-over-year earnings improvement, positioning the company for above-average earnings relative to peers [8][11] Long-Term Strategy - The company is engaging capital market advisors to re-capitalize its balance sheet, facilitating growth in the Juvenile segment and supporting the Home segment's reorganization [10][11] - The changes represent a significant shift in the company's operations, with a focus on returning to profitability and maintaining positive momentum in the Juvenile segment [12]

Industry Overview - The Zacks Foreign Banks Industry consists of overseas banks operating in the United States, supervised by the Federal Reserve, and providing a range of financial services to both individual and corporate clients [3] - The industry is undergoing significant restructuring efforts, with banks divesting non-core operations to focus on profitable markets and changing their revenue mix [4] Key Themes Influencing the Industry - Restructuring Efforts: Foreign banks are actively restructuring their businesses to enhance focus on core operations, which is expected to lead to long-term growth despite initial elevated expenses [4] - Relatively Lower Interest Rates: Central banks are lowering interest rates, which is anticipated to support net interest income (NII) and margins for foreign banks, improving loan demand and overall revenues [5] - Uneven Global Economic Recovery: The post-COVID-19 economic recovery has been inconsistent, affecting banks' profitability due to weak growth in their home markets [6] Industry Performance - The Zacks Foreign Banks Industry ranks 14 within the broader Zacks Finance Sector, placing it in the top 6% of over 250 Zacks industries, indicating strong near-term outperformance potential [7][8] - The industry has collectively surged 60.8% over the past two years, outperforming the S&P 500's 38.8% and the Zacks Finance Sector's 45% [11] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 2.34X, significantly lower than the S&P 500's 12.80X, indicating a relative discount compared to the broader market [15][18] Company Highlights HSBC Holdings plc - HSBC has $3.05 trillion in assets and is focusing on expanding operations in Asia, particularly in wealth management and private banking [21] - The bank is reallocating $1.5 billion from non-strategic activities to core operations and has initiated a $1.5 billion cost-saving plan [24][26] - Shares have increased by 24.4% on the NYSE in the past six months, with a Zacks Rank of 3 (Hold) [27] ICICI Bank Limited - ICICI Bank has total assets of $247.8 billion and is enhancing its digital banking services, leading to a 15.9% increase in non-interest income in fiscal 2025 [30][35] - The bank's shares have risen 7.8% on the NYSE in the past six months, with a Zacks Rank of 3 [36] Barclays PLC - Barclays has total assets of $2,061.1 billion and is focused on improving efficiency through cost-saving measures, achieving gross savings of £1 billion in 2024 [39][41] - The company's shares have gained 32.8% on the NYSE in the past six months, with a Zacks Rank of 3 [43]

Core Insights - Citigroup plans to cut approximately 3,500 jobs at its technology centers in Shanghai and Dalian by early Q4 2025 as part of its risk management enhancement efforts [1][7] - The job cuts primarily involve full-time positions, with some roles being relocated to other technology centers [2][4] - This workforce reduction is part of a broader strategy to simplify global technology operations and improve data management following a $136 million fine from U.S. regulators for inadequate data management progress [3][5] Job Cuts and Restructuring - The job cuts at Citigroup's China technology centers are part of a global initiative to reduce 20,000 jobs by 2026, aiming for annualized savings of $2-2.5 billion [5][7] - Citigroup has previously announced plans to cut up to 200 IT contractor jobs in China, indicating a significant restructuring in its technology operations [2][5] - The restructuring is intended to address regulatory requirements and streamline internal processes [4][5] Business Overhaul and Strategic Focus - Citigroup is focusing on growth in core businesses by reducing its international operations, including exiting consumer banking in 14 markets across Asia and EMEA [6][7] - The bank has successfully exited consumer banking in nine countries and is winding down operations in Korea, reallocating capital to higher-return segments like wealth management and investment banking [6][7] - Citigroup's stock performance has seen a 5.9% increase over the past six months, outperforming the industry growth of 3.5% [9]

Core Insights - UBS Group AG's subsidiary, UBS Asset Management, has reached a definitive agreement to sell its hedge fund, private credit, and commodities business, O'Connor, to Cantor Fitzgerald as part of its strategy to streamline operations [1][5] - The transaction involves approximately $11 billion in assets under management and is expected to close in the fourth quarter of 2025, pending regulatory approvals [2][5] - UBS will maintain a long-term commercial arrangement with Cantor Fitzgerald to ensure continuity for UBS Global Wealth Management clients [3] Company Strategy - The divestiture aligns with UBS's broader strategy of focusing on core operations following the acquisition of Credit Suisse in 2023, aiming to reduce non-core and legacy risk-weighted assets to below $8 billion by the end of 2025 [5] - UBS has also formed a strategic partnership with 360 ONE WAM Ltd, acquiring a 4.95% share while selling its onshore Indian wealth business [6] Financial Performance - UBS aims to achieve $13 billion in gross cost savings by the end of 2026 through its restructuring efforts [7] - Despite these efforts, UBS shares have decreased by 2.4% over the past six months, contrasting with the industry's growth of 21.7% [8]

Financial Data and Key Metrics Changes - The company reported a 7% increase in sales for the fourth quarter, driven primarily by growth in the Climate Solutions segment [21] - Adjusted EBITDA increased by 32% or $25 million, with an adjusted EBITDA margin of 16.1%, representing a 300 basis point improvement from the prior year [22] - Full year adjusted EBITDA margin ended at 15.2%, which is 210 basis points above fiscal 2024 [23] Business Line Data and Key Metrics Changes - Climate Solutions segment reported a 30% increase in revenues and a 45% increase in adjusted EBITDA, resulting in a 220 basis point improvement in adjusted EBITDA margins to 21% [7][15] - Performance Technologies segment achieved a 15% adjusted EBITDA margin in the fourth quarter, with a 200 basis point year-over-year improvement [11][20] - Data center sales grew by $69 million or 80% from the prior year, driven by higher North American sales and the Scott Springfield acquisition [15] Market Data and Key Metrics Changes - North America showed strong demand for chillers, with data center sales significantly contributing to revenue growth [8][15] - The European market is experiencing some downturn, with customers adjusting their spending plans [52] Company Strategy and Development Direction - The company is focusing on expanding its Climate Solutions segment and has made significant investments to drive growth [5][10] - A new modular data center cooling solution is being launched to meet market demands for high-density compute infrastructure [9] - The Performance Technologies segment is being reorganized into two product groups to better focus on key end markets and customers [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the data center market, with visibility of customer plans extending up to five years [38] - The company anticipates total sales growth of 2% to 10% for fiscal 2026, with Climate Solutions expected to grow by 12% to 20% [27] - Performance Technologies is expected to see sales decline by 2% to 12% due to depressed end markets [28] Other Important Information - The company generated $27 million of free cash flow in the fourth quarter, with full year free cash flow at $129 million [24] - A $100 million stock buyback program was announced, with $18 million of share repurchases completed [25] Q&A Session Summary Question: Can you discuss data center visibility and customer build schedules? - Management indicated strong confidence in data center opportunities, with visibility extending up to five years for some customers [36][38] Question: Is there anything sourced from China that is hard to find elsewhere? - The company has significantly reduced dependency on China and feels comfortable with its local supply chain strategy [40] Question: What is the outlook for Performance Technologies? - The largest uncertainty is the rate of market recovery, particularly in Performance Technologies, while Climate Solutions is expected to grow steadily [41] Question: Can you clarify the split in data center revenue between the US and Europe? - The split is approximately 75% North America and 25% Europe [64] Question: How will data center revenue ramp up in fiscal 2026? - The first quarter is expected to be the softest, with ramp-up occurring throughout the year as capacity increases [66] Question: What is the growth outlook for Climate Solutions? - Data center revenue is expected to grow by at least 30%, while other areas may see flat or low double-digit growth [70] Question: What are the plans for divestitures in the Performance Technologies segment? - Currently, no divestitures are built into the guidance, but the company is focused on exiting non-strategic businesses [78]

Investment Rating - The investment rating for Kawasaki Heavy Industries is Underweight [3][56]. Core Insights - There is a high interest in the defense-related business, with substantial increases in orders and improving margins due to a rise in the government defense budget. The operating profit margin (OPM) for the defense business improved from 3-4% in the past to 6% in F3/25, with expectations of reaching 7-8% in F3/26. The company targets sales revenue of ¥500-700 billion in F3/31 [1][3]. - In the rolling stock business, margins remain low, and capacity utilization in domestic and Asian markets is also low. The company is exploring various strategic options for business restructuring despite perceptions of a passive approach [1]. Summary by Sections Investment Rating - Stock Rating: Underweight [3]. - Price Target: ¥5,100 [3]. - Current Share Price (as of May 20, 2025): ¥8,732 [3]. Business Performance - Defense business OPM improved to 6% in F3/25, with expectations of 7-8% in F3/26 [1]. - Sales revenue target for defense business is ¥500-700 billion in F3/31 [1]. - Rolling stock business faces low margins and capacity utilization [1].