Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — FY2012 Earnings Presentation

41 slides from Rockwool A/S Class A's earnings presentation, Mar 4, 2013

  1. Slide 1: 2012 results, Copenhagen 4 March 2013

    2012 results – Copenhagen 4 March 2013 2012 results, Copenhagen 4 March 2013 CEO Eelco van Heel CFO Gilles Maria 1

  2. Slide 2: Forward-looking statement

    2012 results – Copenhagen 4 March 2013 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 envi

  3. Slide 3: Agenda

    2012 results – Copenhagen 4 March 2013 Agenda  Welcome by CFO Gilles Maria  Financials by CFO Gilles Maria  Group development by CEO Eelco van Heel  Questions ? 3

  4. Slide 4: Financials

    2012 results – Copenhagen 4 March 2013 Financials 4

  5. Slide 5: Net sales

    2012 results – Copenhagen 4 March 2013 Net sales Based on unchanged exchange rates, the increase is 5% compared to last year 16,000 13,908 13,700 13,748 14,664 14,000 11,168 11,732 12,000 DKK million 10,000 8,000 6,000 4,000 17% 2,000 -1% 5% 7% -18% 0 -2,000 2007 2008 2009 2010 2011 2012 -4,000 Net

  6. Slide 6: Long term sales development 1984-2012

    2012 results – Copenhagen 4 March 2013 Long term sales development 1984-2012 16,000 14,000 12,000 DKK million 10,000 8,000 6,000 4,000 2,000 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 6

  7. Slide 7: Geographical split of external net sales

    2012 results – Copenhagen 4 March 2013 Geographical split of external net sales Growth in comparable DKK million Q4 2012 Growth 2012 Growth rates Western Europe 2,287 0.3% 8,970 2.1% 1.3% Eastern Europe incl. Russia 980 6.9% 3,380 11.8% 10.8% North America, Asia and others 670 8.6% 2,314 19.3% 13.0%

  8. Slide 8: EBITDA

    2012 results – Copenhagen 4 March 2013 EBITDA 3,600 3,391 3,000 2,373 2,240 2,400 DKK million 1,529 1,782 1,804 1,800 1,200 600 17% 24% -30% -36% 1% 0 -600 2007 2008 2009 2010 2011 2012 EBITDA Changes 8

  9. Slide 9: Long term EBITDA ratio 1984-2012

    2012 results – Copenhagen 4 March 2013 Long term EBITDA ratio 1984-2012 25% 20% Percentage 15% 10% 5% 0% 9

  10. Slide 10: EBITDA for the period Q4

    2012 results – Copenhagen 4 March 2013 EBITDA for the period Q4 1,000 854 800 609 608 DKK million 600 519 498 463 400 22% 200 8% -29% -15% -11% 0 -200 2007 2008 2009 2010 2011 2012 EBITDA Changes 10

  11. Slide 11: EBITDA per business segment

    2012 results – Copenhagen 4 March 2013 EBITDA per business segment 3,046 3,200 2,800 2,400 DKK million 1,957 1,822 2,000 1,369 1,428 1,600 1,329 1,200 800 320 252 339 355 336 301 400 80 74 117 25 -52 21 0 2007 2008 2009 2010 2011 2012 -400 Insulation Segment Systems Segment Elim. & Holding companies

  12. Slide 12: EBIT

    2012 results – Copenhagen 4 March 2013 EBIT 2,706 2,800 2,400 2,000 DKK million 1,502 1,600 1,141 1,200 904 793 800 576 38% 26% 400 14% -44% -62% 0 -400 2007 2008 2009 2010 2011 2012 EBIT Changes 12

  13. Slide 13: Long term EBIT ratio 1984-2012

    2012 results – Copenhagen 4 March 2013 Long term EBIT ratio 1984-2012 20% 15% Percentage Goal 11% 10% 5% 0% 13

  14. Slide 14: EBIT per business segment

    2012 results – Copenhagen 4 March 2013 EBIT per business segment 2,396 2,400 2,000 1,600 DKK million 1,162 1,200 766 800 551 522 510 318 332 336 353 299 400 249 76 -8 8 -195 -53 0 0 -400 2007 2008 2009 2010 2011 2012 Insulation Segment Systems Segment Elim. & Holding companies 14

  15. Slide 15: EBIT for the period Q4 per business segment

    2012 results – Copenhagen 4 March 2013 EBIT for the period Q4 per business segment  The Q4 2012 EBIT for Insulation is affected by one-off costs – based on an ”operational” result, the EBIT ratio would have been 6.4% instead of 4.4%  Due to a structual change in the cost allocation of services, th

  16. Slide 16: Financial items

    2012 results – Copenhagen 4 March 2013 Financial items Out of the financial costs, DKK 31 million is net interests costs 30 21 20 8 10 DKK million 0 -10 -20 -17 -30 -40 -42 -50 -47 -60 -55 2007 2008 2009 2010 2011 2012 16

  17. Slide 17: Effective tax percentage

    2012 results – Copenhagen 4 March 2013 Effective tax percentage 40 37.0% 35 33.9% 30.1% 30.7% 29.5% 30 25.4% 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 17

  18. Slide 18: Profit for the year

    2012 results – Copenhagen 4 March 2013 Profit for the year The profit for 2012 increased by 24.2% compared to last year 2,060 2,000 1,750 1,500 DKK million 1,250 1,080 1,000 623 774 750 537 500 350 250 0 2007 2008 2009 2010 2011 2012 18

  19. Slide 19: Change in working capital

    2012 results – Copenhagen 4 March 2013 Change in working capital 800 598 600 400 DKK million 200 -468 -138 -84 -47 -177 0 -200 -400 -600 2007 2008 2009 2010 2011 2012 19

  20. Slide 20: Inventories

    2012 results – Copenhagen 4 March 2013 Inventories 1,400 1,267 1,323 1,268 40 1,200 30 61 1,110 1,007 39 1,000 DKK million 25 661 801 881 683 800 22 650 585 600 478 400 576 524 200 402 397 421 301 0 2007 2008 2009 2010 2011 2012 Finished goods Raw material and consumables Work in progress 20

  21. Slide 21: Debtors

    2012 results – Copenhagen 4 March 2013 Debtors 1,541 1,600 1,499 1,471 1,509 1,398 1,400 1,299 1,200 DKK million 1,000 800 600 400 200 0 2007 2008 2009 2010 2011 2012 21

  22. Slide 22: Investments and acquisitions

    2012 results – Copenhagen 4 March 2013 Investments and acquisitions 2,642 2,700 2,400 2,100 1,689 DKK million 1,621 1,800 1,412 1,500 1,170 1,200 1,126 1,200 31 101 964 900 817 634 617 473 953 600 310 300 495 482 491 505 285 0 2007 2008 2009 2010 2011 2012 Acquisitions Capacity Program Maintenance C

  23. Slide 23: Cash flow

    2012 results – Copenhagen 4 March 2013 Cash flow Cash flow from operations for 2012 increased by 14.9% compared to last year 2,700 2,480 2,400 1,950 2,100 1,754 1,800 1,507 1,285 1,527 DKK million 1,500 1,200 859 780 790 900 600 327 300 0 -300 -127 -600 -900 -1,200 -1,135 2007 2008 2009 2010 2011 20

  24. Slide 24: Energy prices

    2012 results – Copenhagen 4 March 2013 Energy prices 24

  25. Slide 25: Expectations

    2012 results – Copenhagen 4 March 2013 Expectations 25

  26. Slide 26: Expectations for 2013

    2012 results – Copenhagen 4 March 2013 Expectations for 2013  Net sales is expected to be slightly above the level of 2012  Profit for the year around DKK 700 million  Investment level excluding acquisitions is expected to be around DKK 1,600 million 26

  27. Slide 27: Group developments

    2012 results – Copenhagen 4 March 2013 Group developments 27

  28. Slide 28: Highlights

    2012 results – Copenhagen 4 March 2013 Highlights  Under difficult market circumstances, the Group managed to increase sales by 6.7%  Insulation sales grew by 6.4% and System sales by 7.7 %  Volumes showed a receding trend in the EU core markets over the year whereas volume outside Europe develop

  29. Slide 29: World market

    2012 results – Copenhagen 4 March 2013 World market The EUR 25,000 million global insulation market grew by 3% in 2012 – primarily in the regions outside EU and the US Asia and Western Europe Plastic foam Stone and other 47% 27% ~55% slag wool ~20% Regions Materials Eastern Europe Glass incl. wool R

  30. Slide 30: Western Europe

    2012 results – Copenhagen 4 March 2013 Western Europe We have indications that stone wool has gained market share in 2012 Plastic foam Stone wool Pitched roof & Other ~45% ~30% horisontal loft Foundation, floor & ceilings EUR Building ~6,500 sector million segments Facades Glass wool Flat roof ~20%

  31. Slide 31: Western Europe

    2012 results – Copenhagen 4 March 2013 Western Europe (61% of 2012 sales)  ROCKWOOL full-year sales increased in the region by 2% compared to 2011  Volumes declined in Q4 whereas margin development remained positive  The market continues to be driven by Germany and France where efficient incentiv

  32. Slide 32: Focus on facades - ETICS

    2012 results – Copenhagen 4 March 2013 Focus on facades - ETICS  An ETICS system is a total facade solution consisting of insulation, render, mesh and paint  External Thermal Insulation Composite Systems (ETICS) sales continue to develop fast in UK and Germany – in the latter country there is now

  33. Slide 33: Eastern European insulation market 2012 (incl. Russia)

    2012 results – Copenhagen 4 March 2013 Eastern European insulation market 2012 (incl. Russia) Plastic foam ~35% Stone wool ~40% EUR ~1,500 million Other ~5% Glass wool ~20% 33

  34. Slide 34: Central and Eastern Europe including Russia

    2012 results – Copenhagen 4 March 2013 Central and Eastern Europe including Russia (23% of 2012 sales)  Sales developed nicely in the region with an overall growth rate of 12%  The development in Russia has been solid. The new factory in Elabuga reached maximum capacity utilisation faster than ant

  35. Slide 35: North American insulation market 2012

    2012 results – Copenhagen 4 March 2013 North American insulation market 2012 Stone wool less than 5% Plastic foam ~50% EUR 5,000 million Glass wool ~45% Other less than 5% 35

  36. Slide 36: North America

    2012 results – Copenhagen 4 March 2013 North America (Together with Asia and rest of the world 16% of 2012 sales)  Sales continued to grow at double-digit rates  In the US, the penetration of the DIY market through primarily Home Depot and Lowe’s continues  The number of stores supplied increased

  37. Slide 37: Asia and other insulation market 2012

    2012 results – Copenhagen 4 March 2013 Asia and other (Pacific, South America and Africa) insulation market 2012 Stone / slag wool ~15% Glass wool ~15% EUR Plastic foam ~65% ~12,000 million Other ~5% 37

  38. Slide 38: Asia

    2012 results – Copenhagen 4 March 2013 Asia (Together with Asia and rest of the world 16% of 2012 sales)  Sales developed at double-digit pace  The political pressure to switch to non-combustible insulation in China led to the decision to invest in a plant in Northern China. Expected to be ready i

  39. Slide 39: Systems business

    2012 results – Copenhagen 4 March 2013 Systems business  Sales increased by 7.7% with contribution by most of the businesses  EBIT was somewhat lower declining from 353 mill DKK in 2011 to 299 mill. in 2012. The main reason for the decline is increased costs due to accelerated globalisation of som

  40. Slide 40: Innovation: Improving the building envelope by insulation of windows

    2012 results – Copenhagen 4 March 2013 Innovation: Improving the building envelope by insulation of windows  The Group is developing a unique stone wool system for insulation and protection of windows  Using the natural properties of stone wool: Durability and thermal performance  With an excelle

  41. Slide 41: Questions ?

    2012 results – Copenhagen 4 March 2013 Questions ? 41

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