Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — ROCKWOOL International — FY2013 Earnings Presentation

39 slides from Rockwool A/S Class A's earnings presentation, Feb 24, 2014

  1. Slide 1: 2013 results, Copenhagen

    2013 results – Copenhagen 24 February 2014 2013 results, Copenhagen 24 February 2014 CEO Eelco van Heel CFO Gilles Maria 1

  2. Slide 2: Forward-looking statement

    2013 results – Copenhagen 24 February 2014 Forward-looking statement The statements on the future in this presentation, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors influencing the activities of the Group, e.g. the global economic

  3. Slide 3: Agenda

    2013 results – Copenhagen 24 February 2014 Agenda  Welcome by CEO Eelco van Heel  Group development by CEO Eelco van Heel  Financials by CFO Gilles Maria  Questions ? 3

  4. Slide 4: Group development

    2013 results – Copenhagen 24 February 2014 Group development 4

  5. Slide 5: Highlights

    2013 results – Copenhagen 24 February 2014 Highlights  The gradual recovery in key markets continues with 2013 sales up 2.3% on a like-for-like basis  In Europe, the worst of the crisis seems over. North America, Russia and Asia – with the exception of China - show healthy market circumstances  E

  6. Slide 6: Western Europe

    2013 results – Copenhagen 24 February 2014 Western Europe (59% of 2013 sales)  Continued gradual recovery after a very weak start of the year. Sales decreased by 1.2% compared to 2012  France and Germany continue the good development. Improving trends also in Scandinavia and Southern Europe  UK a

  7. Slide 7: New EU climate & energy efficiency long-term policies

    2013 results – Copenhagen 24 February 2014 New EU climate & energy efficiency long-term policies  Commision’s 2030 targets for 40% CO2 emission reduction is a further tightening of existing targets – European Parliament is pushing for even more  Burden sharing between industry (ETS) and building,

  8. Slide 8: Western Europe

    2013 results – Copenhagen 24 February 2014 Western Europe (59% of 2013 sales)  Continued gradual recovery after a very weak start of the year. Sales decreased by 1.2% compared to 2012  France and Germany continue the good development. Improving trends also in Scandinavia and Southern Europe  UK a

  9. Slide 9: Acquisition of HECK Wall Systems

    2013 results – Copenhagen 24 February 2014 Acquisition of HECK Wall Systems  Acquisition closed end of 2013  Renamed HECK Wall Systems  Very competent ETICS system holder with strong position in important German market  Will be key in the further development of our pan-European strategy  Integr

  10. Slide 10: Western Europe

    2013 results – Copenhagen 24 February 2014 Western Europe (59% of 2013 sales)  Continued gradual recovery after a very weak start of the year. Sales decreased by 1.2% compared to 2012  France and Germany continue the good development. Improving trends also in Scandinavia and Southern Europe  UK a

  11. Slide 11: Re-engineering of the European platform

    2013 results – Copenhagen 24 February 2014 Re-engineering of the European platform  Purpose: to improve product quality and manufacturing processes to strengthen competiteveness Denmark  Means: Reallocating production of certain product groups and upgrading with latest process technology Poland 

  12. Slide 12: Eastern Europe & Russia

    2013 results – Copenhagen 24 February 2014 Eastern Europe & Russia (24% of 2013 sales)  Sales in the region increased by 4.8% including negative exchange rate effect of 3.7%  Continued positive development in Russia with 4 factories sold out. Import levels rising again  Recovery in Poland with go

  13. Slide 13: North America

    2013 results – Copenhagen 24 February 2014 North America (Together with Asia and rest of the world 17% of 2013 sales)  Double-digit growth rate continues. Present factories sold out  Mississippi factory to be commissioned in May as planned  The US plant will increase competitiveness and allow us

  14. Slide 14: Asia

    2013 results – Copenhagen 24 February 2014 Asia (Together with North America and rest of the world 17% of 2013 sales)  Excellent performance in Southeast Asia based on healthy demand for technical insulation and sandwich panels  India & Middle East also developing strong project pipeline in techni

  15. Slide 15: Systems business

    2013 results – Copenhagen 24 February 2014 Systems business  Sales progressed well and ended up 9.9% - 3.6% excluding the Chicago Metallic acquisition  The ceiling activity continues to take market share in a difficult environment  Integration of Chicago Metallic progresses successfully 15

  16. Slide 16: New ceiling business - Chicago Metallic/ROCKFON

    2013 results – Copenhagen 24 February 2014 New ceiling business - Chicago Metallic/ROCKFON  Streamlining of market profile in full swing  Integration running smoothly within sales & marketing, IT, organisation etc.  Regional focus areas: ROCKFON ceiling panel production CMC metal ceiling or grid

  17. Slide 17: Systems business

    2013 results – Copenhagen 24 February 2014 Systems business  Sales progressed well and ended up 9.9% - 3.6% excluding the Chicago Metallic acquisition  The ceiling activity continues to take market share in a difficult environment  Integration of Chicago Metallic progresses successfully  ROCKPAN

  18. Slide 18: Expectations for 2014

    2013 results – Copenhagen 24 February 2014 Expectations for 2014  Continued gradual recovery in Western Europe, improving conditions in Eastern Europe including Russia and positive market conditions in North America and Asia  Sales expected to grow 12% of which 5% organic  Profit for the year aro

  19. Slide 19: Financials

    2013 results – Copenhagen 24 February 2014 Financials 19

  20. Slide 20: Net sales

    2013 results – Copenhagen 24 February 2014 Net sales Net sales increased by 1.6% of which 1.1% is due to the acquisition of Chicago Metallic and -1.8% is due to negative exchange rate impact or like-for-like +2.3% 16,000 14,903 13,748 14,664 13,700 14,000 11,168 11,732 12,000 DKK million 10,000 8,00

  21. Slide 21: Long term sales development 1984-2013

    2013 results – Copenhagen 24 February 2014 Long term sales development 1984-2013 16,000 14,000 12,000 DKK million 10,000 8,000 6,000 4,000 2,000 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 21

  22. Slide 22: Geographical split of external net sales including Chicago Metallic

    2013 results – Copenhagen 24 February 2014 Geographical split of external net sales including Chicago Metallic Growth in comparable DKK million Q4 2013 Growth 2013 Growth rates Western Europe 2,340 2.3% 8,858 -1.2% -0.9% Eastern Europe incl. Russia 1,046 6.7% 3,543 4.8% 8.5% North America, Asia and

  23. Slide 23: EBITDA

    2013 results – Copenhagen 24 February 2014 EBITDA EBITDA increased by 3.7% of which 0.7% is due to the acquisition of Chicago Metallic and -2.1% is due to negative exchange rate impact or 5.1% like-for-like 3,000 2,378 2,253 2,336 2,400 1,791 1,817 DKK million 1,800 1,552 1,200 600 24% 15% -35% 1% 4

  24. Slide 24: Long term EBITDA ratio 1984-2013

    2013 results – Copenhagen 24 February 2014 Long term EBITDA ratio 1984-2013 25% 20% Percentage 15% 10% 5% 0% 24

  25. Slide 25: EBITDA for the period Q4

    2013 results – Copenhagen 24 February 2014 EBITDA for the period Q4 EBITDA for the Q4 increased by 6.0% of which 2.5% is due to the acquisition of Chicago Metallic and -4.6% is due to negative exchange rate impact or like-for-like 8.1% 800 647 610 611 600 525 501 465 DKK million 400 22% 200 8% 6% -1

  26. Slide 26: EBITDA per business segment

    2013 results – Copenhagen 24 February 2014 EBITDA per business segment 1,962 2,000 1,835 1,824 1,600 1,441 1,352 1,378 DKK million 1,200 800 336 252 339 355 301 319 400 193 80 117 74 21 -52 0 2008 2009 2010 2011 2012 2013 -400 Insulation Segment Systems Segment Elim. & Holding companies 26

  27. Slide 27: EBIT

    2013 results – Copenhagen 24 February 2014 EBIT EBIT increased by 10.4% of which 0.3% is due to the acquisition of Chicago Metallic and -2.0% is due to negative exchange rate impact 1,502 1,600 1,400 1,260 1,141 1,200 904 DKK million 1,000 793 800 576 600 38% 400 26% 200 14% 10% -62% 0 -200 2008 200

  28. Slide 28: Long term EBIT ratio 1984-2013

    2013 results – Copenhagen 24 February 2014 Long term EBIT ratio 1984-2013 20% 15% Percentage 10% 5% 0% 28

  29. Slide 29: EBIT per business segment

    2013 results – Copenhagen 24 February 2014 EBIT per business segment 1,162 1,200 1,000 843 766 800 DKK million 522 551 600 510 332 336 353 305 400 299 249 112 200 76 8 -195 -53 0 0 -200 -400 2008 2009 2010 2011 2012 2013 Insulation Segment Systems Segment Elim. & Holding companies 29

  30. Slide 30: EBIT for the period Q4 per business segment

    2013 results – Copenhagen 24 February 2014 EBIT for the period Q4 per business segment The Q4 EBIT for this year is in the Systems Segment negatively impacted by a different periodic allocation of costs amounting to DKK 28 million compensated mainly in Insulation Segment. 250 223 217 210 200 187 200

  31. Slide 31: Financial items

    2013 results – Copenhagen 24 February 2014 Financial items 30 20 10 8 DKK million 0 -10 -20 -17 -30 -40 -42 -50 -47 -46 -60 -55 2008 2009 2010 2011 2012 2013 31

  32. Slide 32: Effective tax percentage

    2013 results – Copenhagen 24 February 2014 Effective tax percentage 40 37,0% 33,9% 35 30,1% 30,7% 29,5% 29,5% 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 32

  33. Slide 33: Profit for the year

    2013 results – Copenhagen 24 February 2014 Profit for the year 1,500 1,250 1,080 DKK million 1,000 863 774 750 623 537 500 350 250 0 2008 2009 2010 2011 2012 2013 33

  34. Slide 34: Change in working capital

    2013 results – Copenhagen 24 February 2014 Change in working capital 800 608 600 DKK million 400 200 -127 -75 -49 -159 -12 0 -200 2008 2009 2010 2011 2012 2013 34

  35. Slide 35: Inventories

    2013 results – Copenhagen 24 February 2014 Inventories The increase in inventories from Chicago Metallic amounts to DKK 94 million 1,400 1,266 1,206 40 1,175 1,200 65 61 1,035 931 1,000 39 DKK million 25 734 590 575 800 824 22 575 509 600 411 400 524 566 200 402 397 421 301 0 2008 2009 2010 2011 201

  36. Slide 36: Debtors

    2013 results – Copenhagen 24 February 2014 Debtors The increase in debtors from Chicago Metallic amounts to DKK 78 million 1,541 1,509 1,575 1,600 1,471 1,398 1,400 1,299 1,200 DKK million 1,000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 36

  37. Slide 37: Investments and acquisitions

    2013 results – Copenhagen 24 February 2014 Investments and acquisitions 2,642 2,700 2,400 1,979 2,100 1,689 DKK million 1,689 1,800 626 1,430 1,500 1,203 1,212 1,200 31 101 101 995 817 734 900 634 617 473 600 953 310 522 619 300 538 494 303 0 2008 2009 2010 2011 2012 2013 Acquisitions Capacity Progr

  38. Slide 38: Cash flow

    2013 results – Copenhagen 24 February 2014 Cash flow 2,400 1,983 1,885 2,100 1,785 1,800 1,523 1,303 1,539 1,500 DKK million 1,200 780 790 900 600 327 300 -1,135 -127 0 -300 -94 -600 -900 -1,200 2008 2009 2010 2011 2012 2013 Cash flow from operating activities Free cash flow 38

  39. Slide 39: Questions ?

    2013 results – Copenhagen 24 February 2014 Questions ? 39

ROCKWOOL International — FY2013 Earnings Presentation on 6ix