Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — HSBC Conference – Frankfurt 2012
30 slides from Rockwool A/S Class A's conference presentation, Feb 1, 2012
Slide 1: Creating buildings that protects people and environments
HSBC Conference – Frankfurt 1 February 2012 Creating buildings that protects people and environments Rockwool Group CFO Gilles Maria
Slide 2: Forward-looking statement
HSBC Conference – Frankfurt 1 February 2012 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
Slide 3: The Rockwool Group
HSBC Conference – Frankfurt 1 February 2012 The Rockwool Group The Rockwool Group is the world’s leading supplier of full- performance insulation and products and systems based on stone wool Turnover 2010 DKK 11,732 million More than 8,800 employees Sales points and factories in more than 30 countri
Slide 4: Rockwool locations
HSBC Conference – Frankfurt 1 February 2012 Rockwool locations
Slide 5: Sales distributed on business area
HSBC Conference – Frankfurt 1 February 2012 Sales distributed on business area Insulation segment Systems 80% 2010 segment 20% ROCKFON GRODAN ROCKPANEL LAPINUS FIBRES
Slide 6: Main insulation areas
HSBC Conference – Frankfurt 1 February 2012 Main insulation areas Interior Sandwich panels Facade Technical insulation Flat roof Marine & Offshore
Slide 7: Key drivers for the insulation market
HSBC Conference – Frankfurt 1 February 2012 Key drivers for the insulation market Renovation rate New build rates Legislation and stimulus packages to support low-energy construction and renovation Energy price level
Slide 8: New build
HSBC Conference – Frankfurt 1 February 2012 New build Driven by Demographics M2 per inhabitant Macro-economics Urbanisation In Europe, under “normal” market conditions, the Rockwool Group’s turnover will be 50/50 between new build and renovation. Today, its more like 30% new build and 70
Slide 9: Energy efficiency of buildings: Solid frame creates superior growth
HSBC Conference – Frankfurt 1 February 2012 Energy efficiency of buildings: Solid frame creates superior growth Short-term stimulus packages for energy refurbishment Long term legal framework for energy renovation of buildings in EU Energy requirements for major renovations now includes all building
Slide 10: Rising energy prices will stimulate energy renovation
HSBC Conference – Frankfurt 1 February 2012 Rising energy prices will stimulate energy renovation Villa in Denmark from 1927 Renovation investment: DKK 157,000 of which DKK 56,000 for insulation Energy consumption before: 5,300 litres oil/year Energy saving: 57% CO2-reduction: 8 tonnes/yea
Slide 11: Global leader in full performance insulation
HSBC Conference – Frankfurt 1 February 2012 Global leader in full performance insulation Acoustic Thermal Sustainable Durable solutions Firesafe
Slide 12: Firesafety
HSBC Conference – Frankfurt 1 February 2012 Firesafety Deadly fires are increasing the awareness of the need for fire safe solutions If insufficiently protected, combustible insulation exposed to fire may add speed and power to the spread of fire in a building Rockwool stone wool is non- combu
Slide 13: Regional developments
HSBC Conference – Frankfurt 1 February 2012 Regional developments
Slide 14: European insulation market 2010
HSBC Conference – Frankfurt 1 February 2012 European insulation market 2010 Plastic foam 40-45% Recticel (PUR) Other 5% Kingspan (PUR, EPS) DOW (XPS) BASF (XPS) Thyssen (PUR) Market size EUR 6.5 bill Glass wool 25-30% Saint Gobain Stone wool 25-30% Knauf Rockwool International Ural
Slide 15: Western Europe
HSBC Conference – Frankfurt 1 February 2012 Western Europe (69% of 2010 sales) Germany and France still lead the market development but also positive trends in Scandinavia. Markets in NL, Spain and UK are challenging Prices continue recovering The residential market is still in better shape than non
Slide 16: Central / Eastern Europe
HSBC Conference – Frankfurt 1 February 2012 Central / Eastern Europe (10% of 2010 sales) Polish market is showing solid growth and better profitability Neighbouring countries also on good track whereas the South Eastern part of the region is still suffering Acquisition of Polish company FAST closed
Slide 17: Russian insulation market 2010
HSBC Conference – Frankfurt 1 February 2012 Russian insulation market 2010 Plastic foam 29% Market size EUR 0.7 bill Glass wool 26% Stone wool 45%
Slide 18: Russia
HSBC Conference – Frankfurt 1 February 2012 Russia (9% of 2010 sales) In Q3, confirmation of an exceptionally strong volume growth Good sales price development but also reflecting high inflation level New factory in Volga region to be Factory delivered February 2012 gradually Volga project replacing
Slide 19: North American insulation market 2010
HSBC Conference – Frankfurt 1 February 2012 North American insulation market 2010 Glass wool 45% Owens-Corning Saint Gobain Johns-Manville Knauf Stone wool 4% Rockwool International A/S Fibrex Market size Thermofiber EUR 4.1 bill. IIG Other 8% Plastic foam 43% Owens-Corning (EPS & XPS) Johns-Manvill
Slide 20: North America
HSBC Conference – Frankfurt 1 February 2012 North America (7% of 2010 sales) Profitable volume growth continues in NA. with current expansion rate we will be out of capacity within 2-3 years Factory Sales price development satisfactory Sales in the US grow even faster than in Canada. Good progress i
Slide 21: China and Southeast Asia
HSBC Conference – Frankfurt 1 February 2012 China and Southeast Asia Insulation market is completely unconsolidated with hundreds of producers Other 8% Glass wool 12% Plastic foam 72% Market size € 2.5 bill. Stone wool 8%
Slide 22: Asia
HSBC Conference – Frankfurt 1 February 2012 Asia (5% of expected 2011 sales) Strong development in China and South-East Asia Continued very positive sales development backed by imports from Europe In China, new regulations on fire safety of buildings are increasing the Sales office opportunities for
Slide 23: Key figures
HSBC Conference – Frankfurt 1 February 2012 Key figures
Slide 24: Long term sales development 1984-2011e
HSBC Conference – Frankfurt 1 February 2012 Long term sales development 1984-2011e 16,000 14,000 12,000 DKK mill. 10,000 8,000 6,000 4,000 2,000 0
Slide 25: Long term EBIT ratio 1984-2011e
HSBC Conference – Frankfurt 1 February 2012 Long term EBIT ratio 1984-2011e 20% 15% Percentage Goal 11% 10% 5% 0%
Slide 26: The Rockwool production is capital intensive
HSBC Conference – Frankfurt 1 February 2012 The Rockwool production is capital intensive – a new state-of-the-art plant producing 100,000 tonnes/year costs approx. €100 mill
Slide 27: What makes a stone wool factory competitive?
HSBC Conference – Frankfurt 1 February 2012 What makes a stone wool factory competitive? Material and energy efficiency - optimizing on the continuous flow from the melting oven Manning optimisation, skills High flexibility of changing the type of product produced - an order run is typically a
Slide 28: Energy prices
HSBC Conference – Frankfurt 1 February 2012 Energy prices Indexed spotprices of oil, foundry coke, gas and electricity 2005-2011 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 2009 2010 2011
Slide 29: Investments and acquisitions end of Q3
HSBC Conference – Frankfurt 1 February 2012 Investments and acquisitions end of Q3 DKK mill. Maintenance CAPEX Capacity programme Acquisitions
Slide 30: Questions?
HSBC Conference – Frankfurt 1 February 2012 Questions?