Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — Q1 2010 Earnings Presentation

33 slides from Rockwool A/S Class A's earnings presentation, Jun 3, 2010

  1. Slide 1: Q1 2010 results

    Q1 2010 results Nordea Copenhagen 3 June 2010 CFO 1 Gilles Maria 1

  2. 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

  3. Slide 3: Agenda

    Agenda 1. Group development 2. Financials 3. Expectations 4. Q & A 3 3

  4. Slide 4: Group development

    Group development 4 4

  5. Slide 5: Key highlights

    Key highlights  Overall picture shows stabilisation in the European region as well as in North America where the Rockwool growth is significantly beating the market. In Asia the market growth is solid.  Sales in the Insulation segment was significantly impacted by adverse weather. The effect is ex

  6. Slide 6: European region 1: The collapsed markets

    European region 1: The collapsed markets • In UK, construction activity is at a low level but we see small signs of recovery in residential newbuild and positive effects from government programmes. • The Spanish market continues to deteriorate. • SE Europe market in bad shape, now also expected to b

  7. Slide 7: European region 2: More stable markets in Western Europe

    European region 2: More stable markets in Western Europe • The main markets in France and Germany remain relatively strong supported by government stimulus packages. • Scandinavia and Benelux develop more negatively. • Sales price levels are holding up. 7 7

  8. Slide 8: European region 3: Eastern Europe still down

    European region 3: Eastern Europe still down • Region still depressed with the exception of Poland showing strength in residential new built market. • Russian market has now bottomed out and is expected to recover rather quickly. • Sales prices have gone down but are now stabilising 8 8

  9. Slide 9: Russian economy will improve

    Russian economy will improve  Market downturn has bottomed out and the Group is expecting a rather fast increase in activities, accelerating further in 2011 and 2012.  First signs of pick-up in activity are now seen in the market.  Volga factory moving forward at pace calibrated with the expected

  10. Slide 10: Long term perspectives

    Long term perspectives  New factory planned in Volga area  Grow East St.PETERSBURG ARKHANGELSK 850 NORTHWEST kmMOSCOW FAR EAST CENTER N.NOVGOROD YAKUTSK 1030 km VOLGA URAL KAZAN YEKATERINBOURG SOUTH SIBERIA Chelyabinsk Rostov Ufa Samara Omsk NOVOSIBIRSK KHABAROVSK KZ IRKUTSK VLADIVOSTOK 10 10

  11. Slide 11: North American sales growth

    North American sales growth  North American economy showing signs of recovery. Construction market has reached the bottom.  The Rockwool Group is able to grow despite an insulation market that is down. Our sales growth in Q1 is double-digit.  Success - most evident in residential DIY segment, but

  12. Slide 12: Asia

    Asia  Strong development in sales in the region  Our capacity in Southeast Asia is sold out and we want to keep the expansion pace  New factory in NW India operational early 2011 12 12

  13. Slide 13: Financials

    Financials 13 13

  14. Slide 14: Net sales first quarter 2010

    Net sales first quarter 2010 - decreased by 1% or 9% on same amount of working days 325% 3255 3250 3099 275% 2750 2539 2520 2476 225% DKK mill. 2250 175% 1750 125% 1250 75% 750 31% 250 -1% 25% -5% -18% -250 -25% 2006 2007 2008 2009 2010 EBIT Changes 14 14

  15. Slide 15: EBIT first quarter 2010

    EBIT first quarter 2010 700 210% 187% 615 600 160% 500 115% DKK mill. 400 337 110% 300 214 200 146 60% 100 68 10% 0 -100 -40% -200 -45% -80% -300 -90% 2006 2007 2008 2009 2010 EBIT Changes 15 15

  16. Slide 16: EBITDA first quarter 2010

    EBITDA first quarter 2010 784 800 240% 700 190% 600 527 500 140% DKK mill. 383 377 400 105% 300 274 90% 200 38% 40% 100 0 -10% -100 -33% -48% -200 -60% 2006 2007 2008 2009 2010 EBIT Changes 16 16

  17. Slide 17: EBIT Q1 2010 per business segment

    EBIT Q1 2010 per business segment 600 561 550 500 450 400 DKK mill. 350 297 300 250 198 200 150 100 84 50 59 54 50 34 20 20 -11 0 16 -10 11 -50 -1 2006 2007 2008 2009 2010 Insulation Systems Division Elim. & Holding companies 17 17

  18. Slide 18: Financial items first quarter 2010

    Financial items first quarter 2010 10 6 5 DKK million 0 -5 -4 -8 -10 -15 -14 -14 2006 2007 2008 2009 2010 18 18

  19. Slide 19: Profit Q1 2010 after minority interests

    Profit Q1 2010 after minority interests 450 428 400 350 DKK mill. 300 250 242 200 150 143 100 78 50 38 0 2006 2007 2008 2009 2010 19 19

  20. Slide 20: Change in working capital Q1 2010

    Change in working capital Q1 2010 0 -50 -64 -100 -84 DKK mill. -150 -200 -250 -245 -300 -280 -350 -380 -400 2006 2007 2008 2009 2010 20 20

  21. Slide 21: Stock end of first quarter 2010

    Stock end of first quarter 2010 1600 1.433 1400 1.271 1200 DKK million 798 1000 921 926 845 824 801 800 413 539 600 490 500 400 635 508 447 200 355 387 301 0 2006 2007 2008 2009 2009 YE 2010 1 2 3 4 5 6 Finished goods Raw material and consumables 21 21

  22. Slide 22: Debtors end of first quarter 2010

    Debtors end of first quarter 2010 2000 1800 1709 1743 1600 1498 1380 1348 1400 1299 DKK mill. 1200 1000 800 600 400 200 0 2006 2007 2008 2009 2009 2010 YE 22 22

  23. Slide 23: Cash flow from first quarter 2010

    Cash flow from first quarter 2010 500 400 300 200 423 DKK million 100 143 79 77 37 0 -47 -49 -100 -257 -273 -200 -472 -300 -400 -500 2006 2007 2008 2009 2010 Cash flow from operations Free cash flow 23 23

  24. Slide 24: Investments and acquisitions Q1 2010

    Investments and acquisitions Q1 2010 700 616 600 500 DKK million 400 400 350 300 344 249 200 210 86 100 216 101 36 0 50 2006 2007 2008 2009 2010 Maintenance CAPEX Capacity program 24 24

  25. Slide 25: Energy prices have decreased but coke remain high

    Energy prices have decreased but coke remain high Indexed spot prices of oil, foundry coke, 350 gas and electricity 2005-2010 (Q1, 2005 = 100) 300 250 200 150 100 50 0 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 25 25

  26. Slide 26: Expectations

    Expectations 26 26

  27. Slide 27: Expectations for 2010

    Expectations for 2010  Net sales decrease by 5%  Profit after minority interests still around DKK 300 million.  Investment level excluding acquisitions around DKK 800-900 million. 27 27

  28. Slide 28: Long term sales development 1984-2010e

    Long term sales development 1984-2010e 14000 12000 DKK million 10000 8000 6000 4000 2000 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e2010e 28 28

  29. Slide 29: Long term EBITDA ratio 1984-2010e

    Long term EBITDA ratio 1984-2010e 26% 24% 22% 20% Percentage 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 29 29

  30. Slide 30: Long term EBIT ratio 1984-2010e

    Long term EBIT ratio 1984-2010e 20% 18% 16% Percentage 14% 12% Goal 11% 10% 8% 6% 4% 2% 0% 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 30 30

  31. Slide 31: Investments and acquisitions full year

    Investments and acquisitions full year 2700 2.642 2400 2100 DKK million 1800 1.689 1.621 1500 1.170 1200 1.004 944 1.126 900 8-900 416 634 357 250 600 953 300 587 588 536 600 495 0 2005 2006 2007 2008 2009 2010e Maintenance Capacity program 31 31

  32. Slide 32: Key elements 2010

    Key elements 2010  Sales volume  Negative carryover from 2009 in the new build segments  Positive refurbishment trend in Western Europe  Sales prices  Carry over from Eastern Europe correction  Slight erosion on large projects  Opportunities in some countries/segments  Input costs  Risk on

  33. Slide 33: Questions

    Questions 33 33

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