Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — Q2 2011 Earnings Presentation
35 slides from Rockwool A/S Class A's earnings presentation, Aug 25, 2011
Slide 1: 2011 Q2 results
2011 H1 results – Copenhagen, 25 August 2011 2011 Q2 results Copenhagen 25 August 2011 CEO Eelco van Heel CFO Gilles Maria 1
Slide 2: Forward-looking statement
2011 H1 results – Copenhagen, 25 August 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 economi
Slide 3: Agenda
2011 H1 results – Copenhagen, 25 August 2011 Agenda Welcome by CFO Gilles Maria Group Development by CEO Eelco van Heel Financials by CFO Gilles Maria Questions 3
Slide 4: Group development
2011 H1 results – Copenhagen, 25 August 2011 Group development 4
Slide 5: Highlights
2011 H1 results – Copenhagen, 25 August 2011 Highlights The current global crisis has added an extra dimension to the uncertainty of any forecast. Nevertheless, the Group has upgraded its 2011 sales forecast from 10-15% growth to 15%. Most European markets show signs of recovery – carried by support
Slide 6: Western Europe
2011 H1 results – Copenhagen, 25 August 2011 Western Europe Germany and France still lead the market recovery but also positive trends in Scandinavia. Markets in NL, Spain and UK are challenging. Newbuild indicators improving in Germany, France and Scandinavia. The residential market is still in bet
Slide 7: Central / Eastern Europe
2011 H1 results – Copenhagen, 25 August 2011 Central / Eastern Europe Polish market is showing accelerating growth. Neighbouring countries also on good track whereas the South Eastern part of the region is still suffering. Acquisition of Polish company FAST to improve market positioning within the i
Slide 8: FAST – winning the ETICS market
2011 H1 results – Copenhagen, 25 August 2011 FAST – winning the ETICS market ETICS – External Thermal Insulation Composite Systems – a rapidly growing market. FAST is a leading Polish system holder within the ETICS segment (2010 sales of DKK 94 million) Assures control over complementary technologie
Slide 9: Russia
2011 H1 results – Copenhagen, 25 August 2011 Russia Strong growth continues - no signs of slowdown. Full Integration of the acquired factory in Ural - performance improved to Rockwool level. Volga factory project to be delivered Factory earlier – production start in Q1 2012 Volga project with full p
Slide 10: North America
2011 H1 results – Copenhagen, 25 August 2011 North America Strong sales growth continues in NA despite the continued weakness of the housing market. Strong focus on more energy efficient Factory buildings - legislative actions on state rather than federal level. Sales in the US grow faster than in C
Slide 11: DIY success
2011 H1 results – Copenhagen, 25 August 2011 DIY success The superior quality of Rockwool insulation is especially appreciated in the DIY segment: The building owner is the decision-maker! Products marketed on their full- performance advantages: Thermal, acoustic, fire, water repellence, fitting pro
Slide 12: Asia
2011 H1 results – Copenhagen, 25 August 2011 Asia The East Asian construction markets are buoyant and the Group is sold out in the region. The group has started importing to satisfy the demand for its non- combustible insulation, especially in China. Former CSR activities now re-branded. Sales offic
Slide 13: Rock the globe
2011 H1 results – Copenhagen, 25 August 2011 Rock the globe The Group has the financial resources to carry out the strategy despite the recent turmoil in the macro-environment. Global expansion – both organic and acquisitive - within insulation, ceilings & cladding – e.g. Asia, North America and Rus
Slide 14: Fire safety
2011 H1 results – Copenhagen, 25 August 2011 Fire safety Deadly fires are increasing the awareness of the need for fire safe solutions. Rockwool stone wool is non- combustible and cannot burn. Plastic insulation is combustible. If insufficiently protected, combustible insulation exposed to fire may
Slide 15: Financials
2011 H1 results – Copenhagen, 25 August 2011 Financials 15
Slide 16: Net sales H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Net sales H1 2011 6,698 6,577 6,750 6,301 6,250 288% 5,445 DKK million 5,750 5,203 5,250 238% 4,750 4,250 188% 3,750 3,250 138% 2,750 2,250 88% 1,750 1,250 750 38% 5% 11% 250 -21% -250 2007 -2% 2008 2009 2010 2011 -12% Net sales Net sales from acquisition
Slide 17: EBITDA H1 2011
2011 H1 results – Copenhagen, 25 August 2011 EBITDA H1 2011 1,800 1,647 224% 1,600 DKK million 1,400 174% 1,200 1,156 1,000 860 124% 778 800 598 600 74% 400 44% 200 24% -30% -48% 0 -10% -200 -26% 2007 2008 2009 2010 2011 EBITDA Changes 17
Slide 18: EBITDA H1 2011 per business segment
2011 H1 results – Copenhagen, 25 August 2011 EBITDA H1 2011 per business segment 1,600 1,559 DKK million 1,400 1,200 1,023 1,000 800 668 605 600 532 400 200 139 149 60 106 53 28 28 53 23 12 0 2007 2008 2009 2010 2011 Insulation Systems Division Elim. & Holding companies 18
Slide 19: EBIT H1 2011
2011 H1 results – Copenhagen, 25 August 2011 EBIT H1 2011 132% 1,301 1,300 113% DKK million 1,100 900 773 700 52% 500 377 294 300 177 100 -41% -77% -22% -100 -300 -28% 2007 2008 2009 2010 2011 EBIT Changes 19
Slide 20: EBIT H1 2011 per business segment
2011 H1 results – Copenhagen, 25 August 2011 EBIT H1 2011 per business segment 1,230 1,154 DKK million 1,054 954 854 754 662 654 554 454 354 254 224 140 138 159 148 154 104 59 52 54 12 7 15 -46 -15 -13 2007 2008 2009 2010 2011 Insulation Systems Division Elim. & Holding companies 20
Slide 21: Financial items H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Financial items H1 2011 DKK million 5 3 0 0 -5 -10 -15 -20 -18 -25 -24 -30 -30 -35 2007 2008 2009 2010 2011 21
Slide 22: Profit H1 2011 after minority interests
2011 H1 results – Copenhagen, 25 August 2011 Profit H1 2011 after minority interests 1,000 905 900 DKK million 800 700 600 538 500 400 300 206 191 200 90 100 0 2007 2008 2009 2010 2011 22
Slide 23: Change in working capital H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Change in working capital H1 2011 200 164 DKK million 100 5 0 -100 -200 -300 -340 -400 -363 -362 2007 2008 2009 2010 2011 23
Slide 24: Stock end of H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Stock end of H1 2011 1,600 1,400 1,345 DKK million 1,168 1,183 1,200 1,007 1,000 960 926 735 800 733 623 496 585 527 600 400 610 524 200 464 435 399 383 0 1 2 3 4 5 6 2007 2008 2009 2010 2010YE 2011 Finished goods Raw material and consumables Acquisitions
Slide 25: Debtors end of H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Debtors end of H1 2011 1,900 1,743 DKK million 1,800 1,709 1,700 1,662 1,600 1,500 1,498 1,348 1,398 1,400 1,300 1,200 1,100 1,000 2007 2008 2009 2010 2010 2011 YE Increase due to acquisitions 25
Slide 26: Cash flow from H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Cash flow from H1 2011 1,200 1,094 DKK million 1,000 800 663 613 600 435 400 279 283 200 0 -200 -137 -173 -256 -400 -600 -800 -729 2007 2008 2009 2010 2011 Cash flow from operations Free cash flow 26
Slide 27: Investments and acquisitions H1 2011
2011 H1 results – Copenhagen, 25 August 2011 Investments and acquisitions H1 2011 1,392 1,400 1,200 DKK million 1,000 932 800 750 659 31 600 539 168 440 452 400 253 294 491 460 200 279 121 145 78 0 2007 2008 2009 2010 2011 Maintenance CAPEX Capacity program Acquisitions 27
Slide 28: Investments and acquisitions full year
2011 H1 results – Copenhagen, 25 August 2011 Investments and acquisitions full year 2,700 2,642 2,642 2,400 DKK million 2,100 1,800 1,689 1,620 1,500 1,412 1,170 1,200 100 1,125 31 817 900 634 600 600 953 310 300 495 505 500 285 0 2007 2008 2009 2010 2011e Maintenance CAPEX Capacity program Acquisit
Slide 29: Energy prices on the rise
2011 H1 results – Copenhagen, 25 August 2011 Energy prices on the rise Indexed spot prices of oil, foundry coke, gas and electricity 2005-2011 (Q1, 2005 = 100) 350 300 250 200 150 100 50 Q2/05 Q2/06 Q2/07 Q2/08 Q2/09 Q2/10 Q2/11 0 29
Slide 30: Expectations
2011 H1 results – Copenhagen, 25 August 2011 Expectations 30
Slide 31: Expectations for 2011
2011 H1 results – Copenhagen, 25 August 2011 Expectations for 2011 Net sales at unchanged exchange rates is expected to increase by 15% for the full year 2011 compared to last year. The Group confirms its expectations for the year of a result after minority interests of DKK 550 million. Capital expe
Slide 32: Sales development 1985-2011e
2011 H1 results – Copenhagen, 25 August 2011 Sales development 1985-2011e 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 2011ee 32
Slide 33: EBITDA ratio 1985-2011e
2011 H1 results – Copenhagen, 25 August 2011 EBITDA ratio 1985-2011e 26% 24% Percentage 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011e 33
Slide 34: EBIT ratio 1985-2011e
2011 H1 results – Copenhagen, 25 August 2011 EBIT ratio 1985-2011e 20% Percentage 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011e 34
Slide 35: Questions
2011 H1 results – Copenhagen, 25 August 2011 Questions 35