Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — ROCKWOOL International — H1 2015 Earnings Presentation

30 slides from Rockwool A/S Class A's earnings presentation, Aug 27, 2015

  1. Slide 1: 2015 Half-year results, Copenhagen

    2015 Half-year results, Copenhagen - 27 August 2015 2015 Half-year results, Copenhagen 27 August 2015 CEO Jens Birgersson CFO Gilles Maria 1

  2. Slide 2: Forward-looking statement

    2015 Half-year results, Copenhagen - 27 August 2015 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

  3. Slide 3: Highlights H1

    2015 Half-year results, Copenhagen - 27 August 2015 Highlights H1  Sales increased by 2.3% helped by slowly recovering European markets and continued growth in US construction. System sales grew 12% while Insulation sales receded 0.4%  Sales prices were rather stable with small advances in some co

  4. Slide 4: Business optimisation process – update

    2015 Half-year results, Copenhagen - 27 August 2015 Business optimisation process – update  As communicated in May, the Group has initiated a business process review  Purpose is to improve our business performance within selected operational areas to strengthen market position and cost base  The

  5. Slide 5: Group performance

    2015 Half-year results, Copenhagen - 27 August 2015 Group performance 5

  6. Slide 6: Net sales H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Net sales H1 2015 Net sales increased by 2.3% with no significant effect from exchange rates Net sales in Q2 2015 amounted to EUR 557.1 million compared to EUR 547.9 million in same period last year, an increase of 1.7%, or 1.1% at comparable excha

  7. Slide 7: Western Europe

    2015 Half-year results, Copenhagen - 27 August 2015 Western Europe (59% of H1 sales)  Sales increased by 2.0% including a small positive currency effect of 0.4%  Solid positive developments in Scandinavia, UK and Southern Europe  Germany and - to a lesser extent - France continue to disappoint 

  8. Slide 8: Eastern Europe including Russia

    2015 Half-year results, Copenhagen - 27 August 2015 Eastern Europe including Russia (18% of H1 sales)  Sales went down 14.6% mainly due to negative currency effects of -12%  As expected, the Russian business declined – though at a lower pace than in Q1- as the economic crisis hit investment activi

  9. Slide 9: North America

    2015 Half-year results, Copenhagen - 27 August 2015 North America (Together with Asia and rest of the world 23% of H1 sales)  Sales in the region of North America and Asia grew 21.7% of which 12.8% related to currency effects  Sales in North America grew slower in Q2 compared to the very strong Q1

  10. Slide 10: Asia

    2015 Half-year results, Copenhagen - 27 August 2015 Asia (Together with North America and rest of the world 23% of H1 sales)  Asian sales decreased slightly in a subdued economic environment  Chinese building insulation market remains challenging with many new stone wool entrants and limited progr

  11. Slide 11: Systems business

    2015 Half-year results, Copenhagen - 27 August 2015 Systems business (24% of H1 sales)  Sales in the Segment increased 12.0% of which 5.4% was currency effect  The ROCKFON and GRODAN businesses were the main contributors  ROCKFON business saw slightly lower sales growth in Q2 but the order pipeli

  12. Slide 12: Continued growth in the US ceiling market

    2015 Half-year results, Copenhagen - 27 August 2015 Continued growth in the US ceiling market  ROCKFON ceilings continue to expand based on the unique properties of stone wool tiles  Overall non-residential market has not developed as rapid as residential but seems to be picking up  The integrati

  13. Slide 13: Financial

    2015 Half-year results, Copenhagen - 27 August 2015 Financial 13

  14. Slide 14: Overview of exchange rate effects for H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Overview of exchange rate effects for H1 2015 Part of Actual Exchange At Comparable % total growth rate effect rates Net sales 2.3% 0.1% 2.2% EBITDA 1.6% -3.3% 4.9% EBIT -4.1% -8.0% 3.9% Geographical segments: Net sales Western Europe 59% 2.0% 0.4%

  15. Slide 15: Energy prices

    2015 Half-year results, Copenhagen - 27 August 2015 Energy prices 15

  16. Slide 16: EBITDA H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 EBITDA H1 2015 EBITDA increased by 1.6% of which -3.3% is due to the exchange rate effect. At comparable exchange rates the EBITDA increased 4.9% EBITDA in Q2 2015 amounted to EUR 89.3 million compared to EUR 84.5 million in same period last year,

  17. Slide 17: EBIT H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 EBIT H1 2015 EBIT decreased by 4.1% of which -8.0% is due to the exchange rate effect. At comparable exchange rates the EBIT increased 3.9% EBIT in Q2 2015 amounted to EUR 46.6 million compared to EUR 47.4 million in same period last year, a decrea

  18. Slide 18: EBIT H1 2015 per business segment

    2015 Half-year results, Copenhagen - 27 August 2015 EBIT H1 2015 per business segment 50 46.9 45 40.2 37.3 40 36.0 36.7 EUR million 35 31.7 28.9 30 25 14.2% 21.7 18.9 20.0 19.4 17.6 20 12.5% 15 5.2% 10 3.9% 5 0 2010 2011 2012 2013 2014 2015 Insulation Segment Systems Segment EBIT ratio 18

  19. Slide 19: Financial items H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Financial items H1 2015 1 0 EUR million -1 -2 -2.4 -3 -3.0 -3.5 -4 -4.0 -4.2 -4.4 -5 2010 2011 2012 2013 2014 2015 19

  20. Slide 20: Profit for the period H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Profit for the period H1 2015 Profit for the period Q2 2015 amounted to EUR 32.1 million compared to EUR 33.4 million in the same period last year 60 52.6 49.8 50 39.2 EUR million 37.5 40 30.7 30 24.5 20 10 0 2010 2011 2012 2013 2014 2015 20

  21. Slide 21: Cash-flow effect from working capital development H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Cash-flow effect from working capital development H1 2015 0 -20 EUR million -40 -45.7 -48.6 -60 -55.5 -59.4 -72.5 -80 -100 -97.6 2010 2011 2012 2013 2014 2015 21

  22. Slide 22: Inventories end of H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Inventories end of H1 2015 220 200.5 204.6 200 173.0 175.4 176.7 180 148.5 160 EUR million 90.8 140 89.9 114.5 84.6 120 84.9 89.3 100 78.2 80 61.0 60 110.6 113.8 88.1 90.8 87.4 40 70.3 53.5 20 0 2010 2011 2012 2013 2014 2014YE 2015 Finished goods R

  23. Slide 23: Debtors end of H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Debtors end of H1 2015 When adjusted for country mix and currency effects, the average credit days shows a rather stable development 285.3 300 233.5 237.3 239.0 250 222.8 195.2 EUR million 200 150 100 50 0 2010 2011 2012 2013 2014 2015 23

  24. Slide 24: Investments and acquisitions H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Investments and acquisitions H1 2015 140 128.6 120 99.7 100 EUR million 73.8 73.1 79.4 80 50.4 61.9 13.4 57.2 60 0.3 44.5 34.0 40 39.5 28.1 54.8 49.3 20 16.3 34.9 28.8 20.2 11.6 0 2010 2011 2012 2013 2014 2015 Maintenance CAPEX Capacity Program Acq

  25. Slide 25: Cash flow from H1 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Cash flow from H1 2015 80 70.5 60 47.3 47.7 38.7 38.7 34.4 40 EUR million 20 0 -9.8 -20 -23.2 -31.6 -29.2 -40 -34.3 -60 -80 -100 -94.2 2010 2011 2012 2013 2014 2015 Cash flow from operating activities Free cash flow 25

  26. Slide 26: Expectations

    2015 Half-year results, Copenhagen - 27 August 2015 Expectations 26

  27. Slide 27: Expectations for 2015

    2015 Half-year results, Copenhagen - 27 August 2015 Expectations for 2015  The Group’s forecast for sales growth for 2015 remains unchanged and is expected to be in the range of 2 to 3%, based on comparable exchange rates. Net effect on sales from exchange rates as of today is estimated not to be m

  28. Slide 28: Long term sales development 1984-2015e

    2015 Half-year results, Copenhagen - 27 August 2015 Long term sales development 1984-2015e 2.500 2.250 2.000 EUR million 1.750 1.500 1.250 1.000 750 500 250 0 28

  29. Slide 29: Investments and acquisitions full year 2015e

    2015 Half-year results, Copenhagen - 27 August 2015 Investments and acquisitions full year 2015e 300 265.3 257.3 250 25.4 83.9 212.7 EUR million 192.1 1,689 200 32.7 162.6 13.5 133.8 150 109.7 139.5 95.0 31 101 98.4 100 817 63.6 82.8 617 1,125 634 41.7 50 310 92.4 85.0 66.3 70.2 83.0 40.7 0 2010 201

  30. Slide 30: Questions?

    2015 Half-year results, Copenhagen - 27 August 2015 Questions? 30

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