Kingspan Group Plc · EURONEXT:KRX
Kingspan — FY2019 Earnings Presentation
31 slides from Kingspan's earnings presentation, Feb 21, 2020
Slide 1: 2019 Full Year Results
— 2019 FULL YEAR RESULTS 21st February 2020
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: The Business
The Business > Global leader in high-performance insulation and building envelopes 4% Water & Energy 7% Light & Air > Market leading positions in UK, 5% Data & Flooring Europe, North America, Brazil, Australasia and India > Global leader in innovating energy DIVISIONS 65% 19% Insulated Panels effici
Slide 4: Our Strategy
Our Strategy > To be the leader in high-performance insulation globally with proprietary and differentiating technologies PLANET PASSIONATE > To be the world’s leading provider of low energy building envelopes – Insulate and Generate > To expand globally, bringing our solutions to markets evolving t
Slide 5: Kingspan – The Full Spectrum
Kingspan – The Full Spectrum Servicing Demand Generating Demand FibreFree AlphaCore® (Expected Stone 2020/2021) Wool Panel Optim-R ® EPS Kooltherm® 100 XPS QuadCoreTM PUR PIR 5
Slide 6: Kingspan Insulates Better
Kingspan Insulates Better OPTIM-R ® 0.007 W/m.K Conversion Growth Kooltherm® 100 QuadCore TM 0.018 W/m.K PIR 0.018 W/m.K (0.018-0.023)2 0.022 W/m.K (0.022-0.027)2 Stone EPS XPS 0.030 W/m.K 0.030 W/m.K Mineral (0.030-0.038)2 (0.030-0.038)2 Fibre 0.034 W/m.K (0.034-0.042)2 Reference 13% 13% 55% 89% 89
Slide 7: QuadCore versus Mineral Fibre
QuadCore versus Mineral Fibre1 for a 100,000 m2 facility TM 25% 297 lower panel fewer truck 1,300 tonnes system cost2 deliveries to site 20% lighter facade with savings in savings in structure & foundation installation costs 12% 60 mins savings in fire resistance (EI 60)3 installation time (faster b
Slide 8: Completing the Envelope
Kingspan Completing the Envelope Kingspan Insulation Boards Global Leadership — continue to drive worldwide teach through greenfield and consolidation Kingspan Insulated Panels & Fagades Global Leadership - confinue fo drive worldwide reach through greenfield and consolidation Kingspan Data & Floori
Slide 9: Planet Passionate – Our Commitments
Planet Passionate – Our Commitments Energy Carbon Circularity Water • Maintain our net zero • Net zero carbon • 1 billion PET bottles • 5 active ocean clean-up energy status manufacturing by 2030 upcycled into our projects by 2025 • Increase our direct use of • 50% reduction in product manufacturing
Slide 10: Global Organic Expansion
Global Organic Expansion inland PIR/QuadCore™ Board Line 2022 UK AlphaCore® Line 2020/2021 Industrial Insulation 2021 | Swecierl Kooltherm® Facility 2020 Kingscourt, Ireland ik i i France Boni aietiochy 2021 PIR/QuadCore™ Board Line 2022 PIR Panel Line 2022 feo Continental Europe Kooltherm® Facility
Slide 11: Our Evolution - Revenue
Our Evolution - Revenue CAGR 17.2% 4.8 Sales (€bn) 4.6 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.2 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 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 11
Slide 12: 5 Year Financial Performance
5 Year Financial Performance Revenue (€m) Trading Profit (€m) CAGR (13.8%) CAGR (18.1%) 500.0 400.0 300.0 497.1 4,659.1 4,372.5 445.2 3,668.1 377.5 200.0 340.9 3,108.5 2,774.3 255.9 100.0 0.0 15 16 17 18 19 15 16 17 18 19 12
Slide 13: 2019 In A Nutshell
2019 In A Nutshell Products Drivers Geography Channel 65% Insulated Panels 85% Energy Efficiency & Conversion 53% Europe 70% Commercial & Industrial Kingspan Revenue €4.7 Applications + Retail = Data Management + Infrastructure Trading Profit €497.] Million 13
Slide 14: 2019 In Summary
2019 In Summary > Insulated Panels sales growth of 7% driven by strong performance in the Americas, Mainland Europe performed well overall with exception of Germany and difficult UK Revenue market particularly in second half. Further headway in key UP 7% to markets on QuadCoreTM €4.7bn > Insulation
Slide 15: Financial Highlights
Financial Highlights 2019 2018 Change CC Change* Revenue (€m) 4,659.1 4,372.5 +7% +6% Trading Profit (€m) 497.1 445.2 +12% +10% Earnings per share (cent) 204.6 184.0 +11% – Total Dividend (cent) 46.5 42.0 +11% – Free Cashflow (€m) 337.1 308.4 +9% – Net Debt (€m) 633.2 728.3 -95.1m – Trading Margin 1
Slide 16: Trading Profit & Margin
Trading Profit & Margin CAGR 18.1% Trading Margin FY 19 FY 18 FY 17 Insulated Panels 10.4% 10.0% 10.0% Insulation Board 13.4% 12.2% 11.9% Light & Air 7.7% 7.4% 7.2% Water & Energy 6.8% 7.0% 9.0% Data & Flooring 11.4% 11.9% 11.8% Group 10.7% 10.2% 10.3% Sky Venture, Abu Dhabi Insulated Panels 497.1 4
Slide 17: Group Sales & Profit Bridge
Group Sales & Profit Bridge Revenue (€m) Trading Profit (€m) 198.7 47.2 520.0 40.7 27.8 18.0 6.1 420.0 320.0 4,659.1 497.1 4,372.5 445.2 220.0 120.0 20.0 Revenue Currency Acquisitions Underlying Revenue Trading Currency Acquisitions Underlying Trading 2018 2019 Profit 2018 Profit 2019 -80.0 17
Slide 18: Strong Free Cash Flow
Strong Free Cash Flow 5.6 9.9 (16.7) (87.2) (154.3) 579.8 337.1 EBITDA Working Capital Non Cash/Provisions Interest Tax Net Capex Free Cash Flow 18
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation (7.9) 29.7 (337.1) 78.0 142.2 728.3 633.2 Net Debt Dec 18 Free Cash Flow Acquisitions Dividend Deferred Consideration FX/Shares Issued Net Debt Dec 19 19
Slide 20: Strong ROCE
Strong ROCE IMC Cinema, Ireland Dri-Design 17.7%* 17.8% 17.3% 17.3% 16.8% 15.2% 2015 2016 2017 2018 2019 * After annualised impact of acquisitions 20
Slide 21: Sales by Geography
Sales by Geography 53% 52% 2019 2018 7% 7% 21% 20% 19% 21% Constant Currency YOY % €’m 2019 2018 Change Change Europe 2,462.7 2,248.3 +10% +10% Americas 990.9 887.6 +8% +12% UK 891.8 938.2 -6% -5% Rest of World 313.7 298.4 +4% +5% Group Sales 4,659.1 4,372.5 +6% +7% 21
Slide 22: Strong Balance Sheet
Strong Balance Sheet > €300m revolving credit facility arranged in June 2019 - undrawn at 31 December 2019 > €451m revolving credit facility in place until June 2022 – undrawn at 31 December 2019 > €50m green loan to fund Planet Passionate initiatives signed in February 2020 > Total available cash b
Slide 23: Insulated Panels
Insulated Panels > Solid 2019 sales overall 2019 2018 > Mainland Europe quite mixed across the continent – Sales (€m) 3,031.9 2,823.1 France and Spain performed particularly well, revenue % of Group Sales 65% 64% was marginally ahead in Benelux while the Netherlands weakened in Q4 owing to environme
Slide 24: Insulated Panels (cont.)
Insulated Panels (cont.) The Western Perth Museum, Australia Australia Museum, Australia Insulated Panels > Significant progress across Americas > Penetration in USA and Canada continued to grow > QuadCoreTM rollout is gaining momentum with new production line in Modesto, California nearing completi
Slide 25: Insulation Boards
Insulation Boards > Solid performance overall given heavy raw material price 2019 2018 inflation in 2018 followed by rapid deflation through 2019 Sales (€m) 876.9 864.1 leading to challenge in maintaining price and margins % of Group Sales 19% 20% > Volumes grew substantially in the Benelux and Sout
Slide 26: Light & Air
Light & Air > Strong sales performance overall, underlying revenue 2019 2018 up 9%, aided by improved synergies and efficiencies Sales (€m) 327.7 291.8 % of Group Sales 7% 7% > Mixed geographical performance with Germany notably weakening in the second half and Benelux performed Analysis of YoY % Ch
Slide 27: Water & Energy
Water & Energy 2019 2018 > Stable sales performance overall Sales (€m) 208.1 202.9 % of Group Sales 4% 5% > UK and Ireland were broadly flat > Growth was achieved in Mainland Europe Analysis of YoY % Change Underlying Currency Acquisitions Total > Australia sales weakened as housing starts in New -3
Slide 28: Data & Flooring
Data & Flooring 2019 2018 > Positive year overall due to increased product offering Sales (€m) 214.5 190.6 into the data sector and growing geographic presence in % of Group Sales 5% 4% Europe Analysis of YoY % Change > UK was predictably weak, particularly office construction Underlying Currency Ac
Slide 29: Outlook
Outlook RAD Building, Nottingham University, UK Insulation > Underlying sales in the early part of 2020 are behind prior year > Despite the slow start we have experienced some element of recovery and global backlog is in reasonable shape which could point towards an improved second quarter > Acquisi
Slide 30: Driving Penetration Growth
Driving Penetration Growth INSULATED PANELS 100% 100% 20% UK Germany North America 80% 80% 15% 60% 60% 10% 40% 40% 5% 20% Aim to Change 20% 0% 0% 0% Building Practices / 2005 2019 2025p 2005 2019 2025p 2005 2019 2025p Material Choices INSULATION BOARDS 50% 20% 14% UK Western Europe The Nordics 12% 4
Slide 31: www.kingspan.com
www.kingspan.com www.kingspan.com Dublin Road Dublin Road Kingscourt Kingscourt Co Cavan Co Cavan Ireland Ireland Tel:+353 Tel: +3534242969 9698000 8000 A82 A82 XY31 XY31 Email:admin@kingspan.com Email: admin@Kingspan.com