Kingspan Group Plc · EURONEXT:KRX
Kingspan — H1 2023 Earnings Presentation
29 slides from Kingspan's earnings presentation, Aug 18, 2023
Slide 1: Half Year Results
Half Year Results 18th August 2023
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements including, without limitation, the Group’s financial position, business strategy, plans and objectives of management for future operations. Such forward-looking information involves risks and uncertai
Slide 3: H1 2023 in Summary
Revenue H1 2023 in Summary €4.1bn → Record performance in a testing environment, improving order intake trend -2% overall in recent months versus a softer comparative → Insulated Panels sales decrease of 10% driven by sluggish volumes particularly Trading Profit in Central and Eastern Europe with st
Slide 4: Our Mission
Our Mission To help accelerate a net zero emissions Ultra Energy-Efficient 173 million tonnes of CO2e will future built environment with the be saved over the life of our insulation systems sold in 2022 wellbeing of people and planet at its heart. Circular Materials In 2022 alone we upcycled over 80
Slide 5: Completing the Envelope
Completing the Envelope Roofing + Waterproofing Platform established Global scale opportunity 6% Revenue Light, Air + Water Global Leader 11% Revenue Bio-based Building Materials - Bio-based Insulation - Bio-based Structures PowerPanelTM Global innovation opportunity, 2024+ Insulated Panels Global L
Slide 6: Megatrends that Drive Us
Megatrends that Politics and Regulation Drive Us Averting a climate emergency Paris Agreement goal to limit the temperature increase above pre-industrial levels to 1.5ºC Market and Customers Sustainability and Resilience Society and Workforce Future proofing of asset values Resource Scarcity Health/
Slide 7: Better Insulation is the Cornerstone of Envelope First
Performance needs Better Insulation is the Cornerstone of Envelope First CO2 1 Insulation performance (R-value) compared to rock mineral fibre of the same thickness. 2 The thermal conductivity range is based on major insulation manufacturers’ websites in key European markets (AT, BE, CZ, DK, FI, FR,
Slide 8: Decarbonisation strategy
Decarbonisation strategy 2020 2030 Key Suppliers Lower embodied carbon materials Operations Lower embodied Net Zero Carbon Manufacturing carbon products 8
Slide 9: 2023 Planet Passionate Progress
2023 Planet Passionate Progress UNDERLYING PROGRESS TOWARDS WHOLE BUSINESS BUSINESS TOPIC TARGET TARGET YEAR FY2020 FY2023(f) TARGET FY2020 FY2023(f)4 Net Zero Carbon Manufacturing (scope 1 & 2 GHG emissions1 - tCO2e) 2030 410k 2 140k 65.9% 518k 2,3 206k 50% reduction in product CO2e intensity Not f
Slide 10: Global Organic Expansion
Global Organic Expansion Belgium Ireland Pipe Insulation Line 2024 Czech Republic PowerPanel™ Enablement 2024 PowerPanel™ Enablement 2024 Northern Ireland Mineral Fibre Panel Line 2024 Mineral Fibre Plant Line 2025 Ukraine Building Technology Campus 2024 - 2030 Dunkirk Insulated Panel Line 2023/24 R
Slide 11: Key Innovations
RooftricityTM PowerPanelTM 2024 1 Key Innovations A-Class OPTIM-R® 2024 2 1 B-Class Kooltherm® 2023 3 3 4 6 QuadCoreTM 2.0 Coldstore 2023 4 2 QuadCore™ LEC (lower embodied carbon) Insulated Panel 2023 5 AlphaCore ® 2023 (Cavity) 7 5 6 Green PowerPipe 2023 (ZeroCarb steel, 50% recycled core, 100% rec
Slide 12: Progress So Far
Progress So Far 9.0 8.5 CAGR 17.6% Sales (€bn) 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 12
Slide 13: 5 Year Financial Performance
5 Year Financial Performance REVENUE (€m) TRADING PROFIT (€m) CAGR 16.2% CAGR 17.3% 4,153.4 4,083.9 435.5 434.2 2,920.1 328.9 2,243.1 2,072.7 230.4 200.1 H1 19 H1 20 H1 21 H1 22 H1 23 H1 19 H1 20 H1 21 H1 22 H1 23 13
Slide 14: Kingspan In a Nutshell
Kingspan In a Nutshell 11% 6% 58% 20% Roofing + Waterproofing Products Light, Air Insulated Panels Insulation + Water 5% Data + Flooring H1 Revenue Drivers 85% 15% €4.1 billion Energy Efficiency & Conversion Other Geographic Regions 47% Western & 24% Central & 23% 6% Applications - Retail - Distribu
Slide 15: Financial Highlights
Financial Highlights H1 2023 H1 2022 YoY % Change cc change1 Revenue (€m) 4,083.9 4,153.4 -2% -1% Trading Profit (€m) 435.5 434.2 - +1% Earnings per share (cent) 175.2 170.6 +3% Interim Dividend (cent) 26.3 25.6 +3% Free Cashflow (€m) 356.9 12.9 Net Debt (€m) 1,372.7 1,206.6 +14% Trading Margin 10.7
Slide 16: Trading Profit & Margin
Trading Profit & Margin TRADING PROFIT (€m) Trading Margin FY 22 H1 22 H1 23 Insulated Panels 10.6% 11.2% 12.2% Insulation 10.0% 10.5% 9.5% Roofing + Waterproofing 5.5% - 4.5% 435.5 434.2 Light, Air + Water 6.9% 5.2% 6.4% 328.9 Data + Flooring 12.0% 12.7% 14.7% 230.4 200.1 Group 10.0% 10.5% 10.7% H1
Slide 17: Group Sales & Profit Bridge
Group Sales & Profit Bridge REVENUE (€m) TRADING PROFIT (€m) 282.6 (318.0) (34.1) 16.7 (10.6) ( 4.8 ) 4,153.4 4,083.9 434.2 435.5 Revenue H1 Currency Acquisitions Underlying Revenue H1 Trading Profit Currency Acquisitions Underlying Trading Profit 2022 2023 H1 2022 H1 2023 17
Slide 18: Free Cash Flow (€m)
Free Cash Flow (€m) (32.8) (18.5) 84.8 (78.4) (114.7) (3.1) (2.1) (15.9) 9.2 528.4 356.9 EBITDA Working Lease Interest Tax Net Capex Provisions Pension Pension buy in Non-cash Free Cash Flow Capital Payments contributions items 18
Slide 19: Net Debt Reconciliation (€m)
Net Debt Reconciliation (€m) 6.6 44.1 (10.4) (356.9) 149.7 1,539.6 1,372.7 Net Debt Dec 22 Free Cash Flow Acquisitions Deferred Dividends Paid FX Net Debt Jun 23 consideration 19
Slide 20: Strong Balance Sheet
Strong Balance Sheet → Net debt to EBITDA 1.43x as at 30 June 2023 → Total available liquidity as at 30 June 2023 of €1.56 billion → New Private Placement issuance of €319m in June 2023 with a 6 year maturity → Weighted average maturity of all drawn debt facilities of 4.4 years Medical Centre, Franc
Slide 21: ROCE Performance
ROCE Performance 19.5% 16.3%* 18.4% 17.3% 15.9% 15.8% 2019 2020 2021 2022 H1 23 21 Jones-Hill House University, USA Insulated Panels * After annualised impact of acquisitions
Slide 22: Sales by Geography
Sales by Geography YoY % H1 23 H1 22 cc change* Change Western & Southern Europe 1,933.6 2,019.2 -4% -3% Central & Northern Europe 979.2 1,022.1 -4% -4% Americas 916.5 846.6 +8% +8% Rest of World 254.6 265.5 -4% -1% Total 4,083.9 4,153.4 -2% -1% H1 2023 H1 2022 6% 47% 6% Western & Southern Europe 49
Slide 23: Insulated Panels
Insulated Panels → Trading relatively positive, albeit reflective of the regional variability in economic conditions. → Global revenue trailed last year owing to weaker volume in some markets and a degree of price deflation, particularly in Continental Europe. → North America delivered a stellar per
Slide 24: Insulation
Insulation → Global sales across the various insulation solutions fell back in the first half with a corresponding reduction in trading profit. → Margin performance progressed during Q2 following a weaker first quarter as we defended prices at the cost of short term volume. → Demand in Western Europ
Slide 25: Light, Air + Water
Light, Air + Water → Total revenue broadly flat for the period. → Mixed performances by geography and end- market. → France, Benelux and Germany performed well as commercial measures executed during 2022 took effect with positive margin performance. → North American performance was in line with prio
Slide 26: Roofing + Waterproofing
Roofing + Waterproofing → Assembling this new platform over the past year. → Predominantly European based and occupies positions in three key categories of flat roofing, rigid pitched roofing and flexible pitched roofing. → Rigid pitch roofing performed robustly in the period, as did the flexible ca
Slide 27: Data + Flooring
Data + Flooring → Data segment has been an important end market given focus on energy efficiency, emissions conservation and lower carbon. → Data segment expected to grow meaningfully in the near and medium term as we expand internal air management offering in projects across the US, Europe and Sout
Slide 28: Outlook
Outlook → Our end markets are not uniform with varying activity levels in different regions and applications. → Our spectrum of high-performance insulation solutions continues to progress apace with natural and bio-based materials the latest milestone. → In recent months order intake volumes have be
Slide 29: Dublin Road Kingscourt, Co Cavan Ireland, A82 XY31
Dublin Road Tel: +353 42 969 8000 Kingscourt, Co Cavan Email: admin@kingspan.com Ireland, A82 XY31 www.kingspan.com