Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — FY2010 Earnings Presentation
34 slides from Rockwool A/S Class A's earnings presentation, Mar 11, 2011
Slide 1: 2010 results, Copenhagen, 11 March 2011
2010 results, Copenhagen – 11 March, 2011 2010 results Copenhagen 11 March 2011 CEO Eelco van Heel CFO Gilles Maria 1
Slide 2: Forward-looking statement
2010 results, Copenhagen – 11 March, 2011 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 e
Slide 3: Agenda
2010 results, Copenhagen – 11 March, 2011 Agenda Welcome by CFO Gilles Maria Financials by CFO Gilles Maria Group development by CEO Eelco van Heel Q&A 3
Slide 4: Financials
2010 results, Copenhagen ––11 11March March,2011 2011 Financials 4
Slide 5: Net sales 2010
2010 results, Copenhagen – 11 March, 2011 Net sales 2010 - increased by 5% compared to 2009 Changes - Q4 net sales increased by 3% to DKK 3,260 million Net sales 13.908 14000 13.700 12000 11.537 11.732 11.168 DKK million 10000 8000 6000 4000 2000 5% 21% 0 -1% -18% -2000 2006 2007 2008 2009 2010 5
Slide 6: EBITDA 2010
2010 results, Copenhagen – 11 March, 2011 EBITDA 2010 Stands at 15% of net sales Changes EBITDA 3600 3.391 3300 DKK million 3000 2700 2.373 2400 2.122 24% 2100 1.782 1800 1.529 1500 17% 1200 18% 15% 900 14% 60% 600 300 17% 0 -300 -30% -36% -600 2006 2007 2008 2009 2010 6
Slide 7: EBITDA per business segment
2010 results, Copenhagen – 11 March, 2011 EBITDA per business segment Insulation Systems Division 3200 3.046 Elim. & Holding companies 2800 2400 DKK million 1.957 2000 1.831 1600 1.329 1.369 1200 800 400 320 336 339 252 188 103 80 74 25 0 -52 -400 2006 2007 2008 2009 2010 7
Slide 8: EBIT 2010
2010 results, Copenhagen – 11 March, 2011 EBIT 2010 - Increased by 38% compared to 2009 Changes - Q4 decreased by 24% compared to 2009 to DKK 180 million EBIT 2800 2706 2400 DKK million 2000 1600 1502 1405 1200 793 800 576 93% 400 38% 0 -44% -62% -400 2006 2007 2008 2009 2010 8
Slide 9: EBIT per business segment
2010 results, Copenhagen – 11 March, 2011 EBIT per business segment Insulation Systems Division Elim. & Holding companies 2400 2.396 2000 DKK million 1600 1200 1.150 1.162 800 522 510 400 318 332 336 249 171 84 -8 8 0 -53 -195 -400 2006 2007 2008 2009 2010 9
Slide 10: Financial items
2010 results, Copenhagen – 11 March, 2011 Financial items 30 21 20 8 DKK million 10 0 -10 -20 -17 -30 -34 -40 -42 -50 2006 2007 2008 2009 2010 10
Slide 11: Profit after minority interests
2010 results, Copenhagen – 11 March, 2011 Profit after minority interests 2000 1.966 1750 DKK million 1500 1250 1.004 1000 950 750 512 500 322 250 0 2006 2007 2008 2009 2010 11
Slide 12: Change in working capital
2010 results, Copenhagen – 11 March, 2011 Change in working capital 598 600 DKK million 400 200 0 -4 -84 -138 -200 -400 -468 -600 2006 2007 2008 2009 2010 12
Slide 13: Inventories
2010 results, Copenhagen – 11 March, 2011 Inventories The increase due to acquisitions amounts to DKK 47 million Finished goods Raw material and consumables Work in progress 1600 1323 1267 1400 40 30 DKK million 1200 1007 25 1000 769 801 661 881 22 800 21 585 600 436 478 400 576 200 402 397 312 301
Slide 14: Debtors
2010 results, Copenhagen – 11 March, 2011 Debtors Increase due to acquisitions 1600 1500 DKK million 1400 76 1300 1536 1446 1471 1200 1322 1299 1100 1000 2006 2007 2008 2009 2010 14
Slide 15: Investments and acquisitions
2010 results, Copenhagen – 11 March, 2011 Investments and acquisitions Maintenance CAPEX 2642 Capacity Program 2700 Acquisitions 2400 2100 DKK million 1800 1689 1620 1500 1412 1170 1200 1004 31 1125 817 900 416 634 600 953 310 300 588 505 495 285 0 2006 2007 2008 2009 2010 15
Slide 16: Cash flow
2010 results, Copenhagen – 11 March, 2011 Cash flow CF from operations Free CF 2480 2400 2100 1950 1810 1800 1507 DKK million 1500 1285 1200 805 859 900 780 600 300 0 -300 -127 -600 -900 -1135 -1200 2006 2007 2008 2009 2010 16
Slide 17: Cost reduction programme and factory efficiency
2010 results, Copenhagen – 11 March, 2011 Cost reduction programme and factory efficiency (Accumulated figures) Cost reduction programme Factory efficiency 700 DKK million 600 da ted 500 e up To b 400 300 200 100 0 2H 2008 1H 2009 2H 2009 1H 2010 2H 2010 17
Slide 18: Energy prices have increased
2010 results, Copenhagen – 11 March, 2011 Energy prices have increased Average Rockwool coke price in 2010 was 10% below 2009 350 Indexed spot prices of oil, foundry coke, gas and electricity 2005-2010 (Q1, 2005=100) 300 250 200 150 100 50 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Q Q Q Q Q
Slide 19: 2010 acquisitions
2010 results, Copenhagen – 11 March, 2011 2010 acquisitions Total acquisition price of CSR is AUD 128 million on a debt free basis corresponding to DKK 671 million. DKK million Enterprise value for CSR 671 Loans in CSR (taken over) -137 Total cash payment for CSR 534 Enterprise value for TRK 283 Tot
Slide 20: Expectations
2010 results, Copenhagen ––11 11March March,2011 2011 Expectations 20
Slide 21: Expectations for 2011
2010 results, Copenhagen – 11 March, 2011 Expectations for 2011 Net sales at actual exchange rates is expected to increase 10% compared to 2010. Profit after minority interests is expected to be around DKK 550 million. Investment level excluding acquisitions is expected to be DKK 850 million. 21
Slide 22: Long term sales development 1986-2011e
2010 results, Copenhagen – 11 March, 2011 Long term sales development 1986-2011e 14000 12000 10000 DKK million 8000 6000 4000 2000 0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011e 22
Slide 23: Long term EBITDA ratio 1986-2011e
2010 results, Copenhagen – 11 March, 2011 Long term EBITDA ratio 1986-2011e 26% 24% 22% 20% Percentage 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011e 23
Slide 24: Long term EBIT ratio 1986-2011e
2010 results, Copenhagen – 11 March, 2011 Long term EBIT ratio 1986-2011e 20% 18% 16% Percentage 14% 12% Goal 11% 10% 8% 6% 4% 2% 0% 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011e 24
Slide 25: Group development
2010 results, Copenhagen ––11 11March March,2011 2011 Group development 25
Slide 26: Highlights
2010 results, Copenhagen – 11 March, 2011 Highlights The market is growing again but with major differences between regions and segments. The BRIC countries lead the way - also in the global construction industry. Increasing energy prices make the payback of energy efficiency projects even more attr
Slide 27: Western Europe (69% of 2010 sales)
2010 results, Copenhagen – 11 March, 2011 Western Europe (69% of 2010 sales) The market is gradually recovering from the crisis primarily driven by renovation activities. Newbuild is showing first signs of improvement in the best performing economies such as Germany and Sweden. The residential marke
Slide 28: Central / Eastern Europe (10% of 2010 sales)
2010 results, Copenhagen – 11 March, 2011 Central / Eastern Europe (10% of 2010 sales) The market continues to be depressed with Poland as the main exception. Investments in new constructions unlikely to be resumed in 2011. No significant government programmes to support energy renovation. Positive
Slide 29: Russia (9% of 2010 sales)
2010 results, Copenhagen – 11 March, 2011 Russia (9% of 2010 sales) The Russian market is booming thanks to public energy renovation programmes and a strong restart of private sector construction. The 100,000 tonnes Volga factory will start production in 1st half of 2012. This Factory capacity will
Slide 30: North America (7% of 2010 sales)
2010 results, Copenhagen – 11 March, 2011 North America (7% of 2010 sales) The Rockwool Group’s operations in North America have during the crisis sustained double-digit growth. Successful entry into flat roof market in 2010 complementing traditional DIY stronghold. Recent more positive signs from t
Slide 31: Asia (5% of expected 2011 sales)
2010 results, Copenhagen – 11 March, 2011 Asia (5% of expected 2011 sales) The Asian construction market is in very high gear. However, quality standards are very low. Awareness about need for energy efficiency improvements in buildings is slowly emerging. Tied in with the fire safety issue, the dem
Slide 32: CSR acquisition – a strong basis for further expansion in Asia
2010 results, Copenhagen – 11 March, 2011 CSR acquisition – a strong basis for further expansion in Asia Provides the Group with excellent sales channels in the region with sales offices in mainland China, Malaysia, Thailand, Philippines, Vietnam and Singapore. Insulation factories in China, Malaysi
Slide 33: Rock the Globe – Rockwool customers in focus
2010 results, Copenhagen – 11 March, 2011 Rock the Globe – Rockwool customers in focus Recent landmarks: Reorganisation sales & marketing functions – innovative segmentation and positioning – back-up tools and functions Market driven innovation Improved thermal performance RockShell Softwool Profess
Slide 34: Questions
2010 results, Copenhagen ––11 11March March,2011 2011 Questions 34