Rockwool A/s Class A · OMXCOP:ROCK_A
Rockwool A/s Class A — ROCKWOOL International — Q1 2020 Earnings Presentation
17 slides from Rockwool A/s Class A's earnings presentation, 2020
Slide 1: Q1 2020 Financial Results
Q1 2020 Financial Results 1
Slide 2: Forward-looking statement
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 environment, including interest and exchang
Slide 3: COVID-19 situation
COVID-19 situation Brief update, high-level considerations Q1 2020 not materially affected by COVID-19 developments April was difficult as lockdowns in multiple markets affected demand and operations; some markets more so than others Remainder of year still uncertain All factories currently
Slide 4: Highlights Q1
Highlights Q1 Sales of Sales increase in local currencies EUR 649 million 0.9% up 1.3% in reported figures incl. 0.4% from Parafon EBIT of EBIT margin of EUR 80 million 12.3% up 4.5% over last year up 0.3 percentage points Free cash flow of Net profit EUR -97 million EUR 61 million down from EUR -84
Slide 5: Q1 sales growth of 0.9%
Q1 sales growth of 0.9% NET SALES EURm Sales grew 0.9% in local currencies incl. 0.4 percentage points from Parafon, and reached EUR 649 million. +0.9% +1.3% Sales increased 1.3% in reported figures with a positive currency effect of 0.4 percentage points. Reported figures 649 Local currencies 641 Q
Slide 6: Regional sales development Q1
Regional sales development Q1 Geographic Growth in local currencies Key developments share of sales* Western Europe Positive impact of 0.8 percentage points from Parafon. United Kingdom, the Netherlands and Denmark performed -0.2% incl. Parafon well. 61% -0.2% incl. FX effect Especially Italy,
Slide 7: Comment on April and Q2
Comment on April and Q2 We expect a significant negative impact over the coming months and a continued volatile demand for the rest of the year, although the building materials and construction sector is less impacted than some other industries, as portions of the building industry are essential for
Slide 8: Profitability Q1
Profitability Q1 +3.8% EBITDA up 3.8% to EUR 125 million. +4.5% EBITDA & EBIT EURm 144 142 142 EBITDA margin of 19.2% compared to 18.8% in 132 138 125 125 the same quarter last year. 120 112 97 102 99 91 94 83 EBITDA 77 80 70 EBIT Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 EBIT up 4.5%
Slide 9: Good underlying profitability in both segments in Q1
Good underlying profitability in both segments in Q1 +1.8% EBIT EURm 56 55 +11.2% Insulation EBIT increased 1.8% to EUR 56 million in Q1 2020. Q1 2019 22 24 Q1 2020 EBIT margin was 10.0% in line with Q1 2019. Insulation Systems Systems EBIT increased 11.2% to EUR 24 million in Q1 2020. EBIT MARGIN
Slide 10: Increased investment activities in Q1
Increased investment activities in Q1 Investments totalled EUR 96 million in Q1 2020 (Q1 2019: EUR 78 million) including grant received in China of EUR 19 million. Capacity investments mainly relate to the factory project in the United States (West Virginia) as well as the expansion in Germany.
Slide 11: Stable free cash flow, normal seasonality
Stable free cash flow, normal seasonality Q1 free cash flow ended at EUR -97 million, down EUR 13 million compared to Q1 2019, mainly due to higher investments. FREE CASH FLOW EURm NWC was 11.4% (2019: 10.9%) of net sales, and Q1: EUR -13m ended at EUR 316 million following our normal 110 season
Slide 12: Update of share buy-back program
Update of share buy-back program Update of share buy-back program From 6 February 2020 to 5 February 2021. Up to a maximum of EUR 80 million. Maximum 250,000 and 400,000 of A and B shares respectively. The Board of Directors to propose at the AGM 2021 that the shares bought back under the pr
Slide 13: Outlook for 2020
Outlook for 2020 13
Slide 14: Outlook for full year 2020
Outlook for full year 2020 Low single-digit growth in local 1. Sales currencies. EBIT margin around 12 percent, 2. EBIT comparable to 2019 when adjusting for the additional depreciation and the start-up costs in Norway and Germany. Investment level around EUR 400 3. Investment million excluding acqu
Slide 15: Key figures for the Group
Key figures for the Group EURm Q1 2020 Q1 2019 YoY (%) FY 2019 Income statement Net sales 649 641 1.3% 2,757 EBITDA 125 120 3.8% 548 EBIT 80 77 4.5% 372 Profit before tax 80 73 10.1% 367 Profit for the period 61 57 5.9% 285 Balance sheet Total assets 2,755 2,527 9.0% 2,694 Equity 2,085 1,968 6.0% 2,
Slide 16: Questions?
Questions? 16
Slide 17: ROCKWOOL International A/S Hovedgaden 584 DK-2640 Hedehusene
ROCKWOOL International A/S Hovedgaden 584 DK-2640 Hedehusene Denmark CVR No. 54879415 Tel: +45 46 56 03 00 www.rockwoolgroup.com 17
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