Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — H1 2010 Earnings Presentation
37 slides from Rockwool A/S Class A's earnings presentation, Aug 30, 2010
Slide 1: 2010 half-year results
2010 half-year results Copenhagen 30 August 2010 CEO 1 Eelco van Heel CFO Gilles Maria 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: Agenda
Agenda 1. Welcome by CFO Gilles Maria 2. Financials by CFO Gilles Maria 3. Group development by CEO Eelco van Heel 4. Q&A 3 3
Slide 4: Financials
& en & ~ 4 Say y vot
Slide 5: Net sales H1
Net sales H1 - Increased by 5% or 1% on same amount of Rockwool days 7000 6698 6577 326% 6500 6000 276% 5445 5500 5304 5203 5000 226% DKK mill. 4500 4000 176% 3500 3000 126% 2500 2000 76% 1500 1000 25% 500 26% 5% 0 -2% -21% -500 -24% 2006 2007 2008 2009 2010 Net Sales Changes 5 5
Slide 6: EBITDA H1 2010
EBITDA H1 2010 - Is 16% of Net Sales 1800 540% 1647 1600 440% 1400 1200 1156 DKK mill. 340% 1000 896 860 800 240% 598 600 140% 400 84% 200 44% 40% 0 -30% -48% -200 -60% 2006 2007 2008 2009 2010 EBITDA Changes 6 6
Slide 7: EBIT H1 2010
EBIT H1 2010 1400 1301 270% 1200 220% 1000 183% 170% 800 773 DKK mill. 600 113% 120% 459 377 400 70% 200 177 20% 0 -30% -200 -41% -77% -400 -80% 2006 2007 2008 2009 2010 EBIT Changes 7 7
Slide 8: EBIT H1 2010 per business segment
EBIT H1 2010 per business segment 1300 1230 1100 DKK mill. 900 700 662 500 361 300 224 140 138 104 100 41 58 59 52 12 7 -15 15 -100 2006 2007 2008 2009 2010 Insulation Systems Division Elim. & Holding companies 8 8
Slide 9: Financial items H1 2010
Financial items H1 2010 10 5 3 0 0 DKK mill. -5 -10 -15 -20 -18 -25 -24 -29 -30 2006 2007 2008 2009 2010 9 9
Slide 10: Profit H1 2010 after minority interests
Profit H1 2010 after minority interests 1000 905 900 800 DKK mill. 700 600 538 500 400 303 300 206 200 100 90 0 2006 2007 2008 2009 2010 10 10
Slide 11: Change in working capital H1 2010
Change in working capital H1 2010 200 164 100 5 0 DKK mill. -100 -91 -200 -300 -340 -363 -400 2006 2007 2008 2009 2010 11 11
Slide 12: Stock end of H1 2010
Stock end of H1 2010 1600 1400 1345 1200 1168 960 DKK mill. 1000 735 926 864 801 800 733 496 409 527 600 500 400 610 455 464 435 200 399 301 0 2006 1 2007 2 2008 3 2009 4 2009 5 YE 2010 6 Finished goods Raw material and consumables 12 12
Slide 13: Debtors end of H1 2010
Debtors end of H1 2010 2000 1839 1800 1743 1600 1459 1466 1456 1400 1299 DKK mill. 1200 1000 800 600 400 200 0 2006 2007 2008 2009 2009 2010 YE 13 13
Slide 14: Cash flow from H1 2010
Cash flow from H1 2010 1200 1094 1000 800 663 613 600 532 435 DKK mill. 400 279 200 122 0 -200 -137 -173 -400 -600 -729 -800 2006 2007 2008 2009 2010 Cash flow from operations Free cash flow 14 14
Slide 15: Investments and acquisitions H1 2010
Investments and acquisitions H1 2010 1600 1400 1392 1200 DKK mill. 1000 932 750 800 659 31 600 168 440 452 400 253 411 491 460 200 279 121 0 78 2006 2007 2008 2009 2010 Maintenance CAPEX Capacity program Acquisitions 15 15
Slide 16: Energy prices have decreased but coke remain high
Energy prices have decreased but coke remain high Indexed spotprices of oil, foundry coke, gas and electricity 2005-2010 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 3 4 1 2 4 1 2 3 4 1 2 4 1 2 3 1 2 3 4 1 2 3 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2005 2006 2007 2008 2009 2010 16 16
Slide 17: Cost reduction programme and factory efficiency
Cost reduction programme and factory efficiency (accumulated figures) 600 500 400 DKK mill. 300 200 100 0 2H 2008 1H 2009 2H 2009 1H 2010 Cost reduction programme Factory efficiency 17 17
Slide 18: Expectations
Expectations 18 18
Slide 19: Expectations for 2010
Expectations for 2010 Net sales at actual exchange rates at the same level as last year. Profit after minority interests at DKK 400 million. Investment level including acquisitions in the range of DKK 1,600-1,700 million. 19 19
Slide 20: Long term sales development 1984-2010e
Long term sales development 1984-2010e 14000 12000 DKK million 10000 8000 6000 4000 2000 0 2010e 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 20 20
Slide 21: 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 21 21
Slide 22: 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 22 22
Slide 23: Investments and acquisitions full year
Investments and acquisitions full year 2700 2642 2400 DKK million 2100 1800 1689 1600-1700 1621 1500 1170 1200 1004 31 1000 944 1126 900 634 357 416 600 953 320 300 587 588 495 505 330 0 2005 2006 2007 2008 2009 2010e Maintenance Capacity program Acquisitions 23 23
Slide 24: Group development
Group development 24 24
Slide 25: Highlights
Highlights The Rockwool Group has over the past few months experienced a slight but persistent positive trend in the sales and profit development. This has led to an adjustment upwards of our 2010 expectations. In the main Western European market, insulation sales continue to be stable due to go
Slide 26: Europe excl. Russia
Europe excl. Russia We see stabilisation in sales in the important Western European market carried by renovation activities. New construction is at a low level, especially within industrial & commercial buildings. Germany and France – approx. 30% of Group turnover - show a solid development in r
Slide 27: Russia
Russia Both GDP and industrial production show accelerating growth. New energy efficiency legislation passed by the Duma end November 2009 is a driver as is the federal goal to reduce energy consumption by 40% by 2020. A major government program of refurbishment of multi-storey housing units s
Slide 28: New capacity to support long-term growth in Russia
New capacity to support the Group’s long-term growth in Russia On June 7th the Rockwool Group announced the acquisition of a factory in Troitsk in the Ural region. The factory is relatively new and of good quality. An efficient start up process made it possible to deliver products of Rockwool qu
Slide 29: Optimal logistics in the globe's biggest market
Optimal logistics in the globe’s biggest market 29 29
Slide 30: North America
North America Canadian economy is relatively strong and construction activity is robust. Despite some positive signs in the US residential market, still a lot of uncertainty for the short term future. Commercial construction in the US remains weak. Home Star is US legislation presently being
Slide 31: Asia
Asia Markets in Asia are strong thanks to a solid economic growth. However, the use of insulation in buildings is still at a very low level. Malaysian operation is performing very well. Indian greenfield factory will start production during 1st quarter of 2011. Sales are already developing nic
Slide 32: Acquisition of CSR's Asian stone wool insulation business
Acquisition of CSR’s Asian stone wool insulation business The closing concerning this AUD 128 million acquisition will be finalised in the coming months. Gives the Group an excellent Asian production platform with 4 stone wool factories located in China, Malaysia and Thailand as well as 1 sandwi
Slide 33: Rockwool locations in Asia
Rockwool locations in Asia Representation office, administration, etc. Factory 33 33
Slide 34: Rock the Globe - our new strategy
Rock the Globe - our new strategy The Rockwool Group is implementing a revision to its strategy which will transform the company in the coming years. The strategy centres around 2 main goals: A fully customer focused and innovative organisation supported by improved segmentation and positionin
Slide 35: Innovation - Aerowool
Innovation - Aerowool The Rockwool Group has developed the world’s first commercialised mineral wool product range containing aerogel. Aerogel – based on nanotechnology - is one of the lightest and best insulating solids in the world. The ability to control the integration of aerogel into our
Slide 36: Rockshell – a unique low-energy wall system
Rockshell – a unique low-energy wall system A full load bearing wall system consisting of steel profile, insulation, internal board and accessories. Developed to eliminate thermal bridges and meet the low-energy standards of the future construction. Installed costs competitive and full design
Slide 37: Questions
Questions 37 37