Kingspan Group Plc · EURONEXT:KRX
Kingspan — FY2011 Earnings Presentation
44 slides from Kingspan's earnings presentation, Feb 27, 2012
Slide 1: Kingspan Full Year Results
Kingspan Full Year Results 27th February 2012
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could affect expected r
Slide 3: At a Glance
At a Glance A world leader in high performance insulation Market leading positions in UK, Mainland Europe, North America and Australia Proprietary technology drives differentiation in product performance Insulated Panels Insulation Access Floors Environmental (49%) (30%) (8%) (13%) Insulated
Slide 4: Where Kingspan Operates
Where Kingspan Operates North America 14% Sales Britain & Northern Ireland 39% Sales Ireland 5% Sales Australasia 4% Sales Mainland Europe 38% Sales Manufacturing and distribution operations throughout Europe, North America, Australasia >80 Locations: 48 Manufacturing Manufacturing: 18 Panels,
Slide 5: Strategic Goals
Strategic Goals Lead the field in high performance insulation globally, greater emphasis of proprietary and differentiating technologies. Kooltherm® Next Generation Insulation Benchmark® Architectural Become the world’s leading provider of low energy building solutions. The ―Insulate & Gener
Slide 6: Key Highlights 2011
Key Highlights 2011 Insulated Panels divisional sales up 19% with growth across all key regions Insulation Boards divisional sales up 85%, or up 9% excluding the acquisition of CIE, with increased geographic balance following Revenue the acquisition up 30% Environmental divisional sales up 18%
Slide 7: Financial Review
Kingspan. Financial Review
Slide 8: Financial Highlights
Financial Highlights +30% Revenue €1,546.9m +14% like-for-like* +33% Trading Profit** €95.7m +24% like-for-like* +20bps Trading Margin 6.2% +50bps like-for-like Profit after tax €62.9m +28% Basic EPS 37.1c +27% Free cash flow €76.9m +93% Total dividend 11c €32.4m +10% * Like-for-like comparisons exc
Slide 9: Sales Bridge
Sales Bridge 1,800 1,600 190 1,400 100.5 77.1 13.9 1,200 1,000 €m 800 1,546.9 600 1,193.2 400 200 0 Revenue FY 10 Currency Volume Price/Mix Acquisition Revenue FY 11 9
Slide 10: Trading Profit & Margin Growth
Trading Profit & Margin Growth Trading Profit Margin % 100 Margin % 90 80 FY 11 H1 11 FY 10 70 60 Insulated Panels 6.7% 6.2% 5.6% 50 Insulation Boards 5.6%* 6.5% 6.7% €m 95.7 Environmental 3.3% 1.2% 0.5% 40 72.0 67.0 Access Floors 10.2% 10.4% 13.8% 30 20 Group 6.2% 6.0% 6.0% 10 * 7.0% Pre-acquisitio
Slide 11: FY2011 Trading Profit Like-for-Like growth
FY2011 Trading Profit Like-for-Like growth Like-for-like Acquisitions/ Currency Reported growth disposals Impact Growth Insulated Panels +41% - - +41% Insulation Boards +15% +40% -1% +54% Environmental +646% - -2% +644% Access Floors -28% - -3% -31% Group +25% +9% -1% +33% Operating Leverage in Larg
Slide 12: Strong Free Cash Flow Conversion
Strong Free Cash Flow Conversion €m FY 11 FY 10 % change Operating profit 90.9 67.4 +35% Depreciation & amortisation 42.7 40.2 +6% Working Capital (increase)/decrease (17.0) (40.5) -58% Operating cash flow 116.6 67.1 +74% Interest and taxation (21.5) (12.4) +73% Net capital expenditure (23.6) (15.8)
Slide 13: Strong Net Debt Performance
Strong Net Debt Performance €m FY 11 FY 10 Free cash flow 76.9 39.9 Acquisitions (net of disposal proceeds) (107.0) (0.2) Dividends paid/other (16.8) (6.3) Cashflow Movement (46.9) 33.4 Debt Translation (2.4) 1.9 (Increase)/decrease in net debt (49.3) 35.3 Net debt at start of period (120.8) (156.1)
Slide 14: Key Ratios
Key Ratios FY09 FY10 H1 11 FY11 ROCE 8.4% 8.6% 9.1% 10.0% Gearing (Net Debt: 28.1% 18.1% 32.1% 23.1% Shareholders Funds) Net Debt/EBITDA 1.6 1.12 1.83 1.27 Interest Cover 9.4 11.9 12.2 10.2 Working Capital as % 11.0% 13.6% 12.5% 12.2% of Sales 14
Slide 15: Strong Balance Sheet
Strong Balance Sheet Net Debt €170.1m – headroom Maturity profile of drawn debt €’m c. €460m 160 Revolving Credit Facility of €330m 2005 Private placement €151mn 140 (USD200m) 120 2011 Private placement €150m 100 (USD200m) Significant headroom on covenants 80 150 Max 3.5x net debt:EBITDA
Slide 16: Business Review & Outlook
Business Review & Outlook 16
Slide 17: Sales by Geography
Sales by Geography FY 2010 FY 2011 4% 2% 5% 4% 1% 5% 14% 17% 39% 43% 29% 37% Republic of Ireland €mn FY 11 FY 10 Constant YoY % Change Britain & Northern Ireland Currency Mainland Europe Americas Change Australasia Republic of Ireland 78.1 65.2 +20% +20% Other Britain & Northern 605.9 517.1 +18% +17
Slide 18: Group Sales Outside UK/IRL
Group Sales Outside UK/IRL 1000 900 €863m 800 700 €610m 600 €’m 56% 500 400 €281m 51% 300 200 23% €109m 100 16% 0 2000 2005 2010 2011 Internationalisation of the Group through the cycle 18
Slide 19: Sales by Product Group
Sales by Product Group 800 700 600 500 €’m 400 FY 2011 FY 2010 300 200 100 0 Insulated Insulation Environmental Access Floors Panels & Renewables €m FY 11 FY 10 Like-for-like* YoY % Change Insulated Panels 758.0 638.5 +20% +19% Insulation Boards 460.4 248.2 +9% +85% Environmental 202.3 171.7 +19% +1
Slide 20: Insulated Panels
Insulated Panels 20
Slide 21: Insulated Panels UK, IRL, WE
Insulated Panels UK, IRL, WE Strong volume growth in all markets FY 11 FY 10 UK +10% Sales (€m) 409.5 340.1 Benelux +7% % of Group Sales 26% 29% Ireland +13% Analysis of YoY % Change Australia/NZ +20% Currency Volume Price & Mix Total Order intake positive, up 8% across the business unit
Slide 22: Insulated Panels CEMEI
Insulated Panels CEMEI Mixed sales pattern across the FY 11 FY 10 territory but strong volume growth overall Sales (€m) 215.1 177.6 % of Group Sales 14% 15% Germany +21% Note: The above figures include Germany and Turkey Turkey +33% Analysis of YoY % Change Poland -13% Currency Volume Price
Slide 23: Insulated Panels North America
Insulated Panels North America 2% volume growth in 2011 FY 11 FY 10 Overall Order Intake -6%, due to Sales (€m) 133.4 120.8 exceptionally strong prior year in % of Group Sales 9% 10% Canada Commercial and Industrial volumes strong, conversion trends on track Analysis of YoY % Change Coldstor
Slide 24: Performance v. Construction Macros
Performance v. Construction Macros North America - Panels Growth Index 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 Kingspan North American Panels Volumes US Commercial and Industrial Construction (total market) * Growth in penetration *Source: McGraw Hill Construction 24
Slide 25: Insulation
Insulation 25
Slide 26: Insulation
Insulation Key highlight was acquisition and FY 11 FY 10 successful integration of CIE insulation businesses Sales (€m) 460.4 248.2 % of Group Sales 30% 21% Robust underlying performance in UK and Western Europe, Ireland weaker Analysis of YoY % Change Recovery of chemical price increases Curr
Slide 27: Performance v. Construction Macros
Performance v. Construction Macros UK Insulation Volumes Growth Index 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 Kingspan UK Insulation Volumes (excl. acquisition) UK Housing Starts 27
Slide 28: Environmental
Environmental 28
Slide 29: Environmental
Environmental Solid performance throughout the business unit, although pressure on FY 11 FY 10 fuel storage volumes in the UK and Sales (€m) 202.3 171.7 Ireland % of Group Sales 13% 14% Continental Europe strong, particularly France, due to ―one-off‖ contract Analysis of YoY % Change Currency Vo
Slide 30: Access Floors
Access Floors 30
Slide 31: Access Floors
Access Floors Sales decrease of 6% in line with FY 11 FY 10 general market Sales (€m) 126.2 134.8 US office activity at all-time low, % of Group Sales 8% 11% likely to remain so for ca. 2 years Robustness of datacentre market key Analysis of YoY % Change counterbalance. New product introductio
Slide 32: Outlook
Outlook Orderbook likely to support a favourable Q1 in most markets, bidding activity remains stable Pace of growth eased in Q4 and likely to moderate further in Q1. Benelux and Ireland particularly weak in recent months Raw material cost stability for Q1, however Q2 increases will pose a chal
Slide 33: Additional Information
Additional Information 33
Slide 34: Trends in Thermal Regulations
Trends in Thermal Regulations This graph shows the permitted consumption of energy in KW/H per m2 of domestic dwelling space and its historic and planned evolution, as a percentage of the permitted 2000 levels. Regulatory drivers in key markets: • EU - European Energy performance of Buildings Direct
Slide 35: The Energy Gap
The Energy Gap? Reduced thermal performance of fibrous insulant in building envelope and fabric systems will increase energy use, costs and CO, emissions’. THERMAL PERFORMANCE 1% moisture content by Degradation of fibrous Air movement through fibrous Impact: Moisture in flat roof volume in fibrous i
Slide 36: Kingspan Insulates Better
Kingspan Insulates Better 36
Slide 37: Rigid Insulation: How it Performs
Rigid Insulation: How it Performs 37
Slide 38: UK Private Housing RM&I Market
UK Private Housing RM&I Market Billion €15 €14 €13 €12 €11 €10 €9 €8 €7 €6 €5 2010 2011 2012 2013 2014 2015 Source: Construction Products Association Forecasts 38
Slide 39: Performance v. Construction Macros
Performance v. Construction Macros German Volumes Growth Index 140 130 120 Residential 110 Non-residential 100 Kingspan Volumes (excl. Acq.) 90 80 2008 2009 2010 2011 Source: Euroconstruct 39
Slide 40: Penetration Potential
Penetration Potential 2005A 2011A 2015F Insulated Panels UK 55% 64% 75% Insulated Panels NA 5% 8.5% 11% UK Insulation 30% 35% 38% Germany External Wall 0% 2.5% 10% CEE Insulation Board 0% 0.9% 6% 40
Slide 41: Notes
Notes 41
Slide 42: Notes
Notes 42
Slide 43: Notes
Notes 43
Slide 44: Alternative2Energy
Alternative2Energy Kingspan Group plc Dublin Road, Kingscourt, Co. Cavan, Ireland Telephone: +353 42 969 8000 Fax: +353 42 966 7501 Email: admin@kingspan.ie © www.kingspan.com