Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — ROCKWOOL International — FY2014 Earnings Presentation
30 slides from Rockwool A/S Class A's earnings presentation, Feb 20, 2015
Slide 1: 2014 results, Copenhagen 20 February 2015
2014 results – Copenhagen 20 February 2015 2014 results, Copenhagen 20 February 2015 CFO Gilles Maria 1
Slide 2: Forward-looking statement
2014 results – Copenhagen 20 February 2015 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: Highlights
2014 results – Copenhagen 20 February 2015 Highlights Core business reasonable and continuing to grow. 2014 sales ended up 5.1% like-for-like and 8.9% in actual figure Q4 sales grew 4% like-for-like, based on strong US sales, good but slowing Russian markets and stable Western Europe Sales pri
Slide 4: Net sales
2014 results – Copenhagen 20 February 2015 Net sales Net sales increased by 8.9% of which -3.5% is due to the exchange rate effect and 7.3% is due to the acquisition effect. Like-for-like net sales increased 5.1% In Q4, the increase was 2.1% compared to Q4 2013 of which -4.3% was the exchange rate e
Slide 5: Overview of exchange rate and acquisition effects for 2014
2014 results – Copenhagen 20 February 2015 Overview of exchange rate and acquisition effects for 2014 Actual Exchange Acquisition Like-for- % growth rate effect effect like growth Net sales 8.9% -3.5% 7.3% 5.1% EBITDA -0.5% -4.9% 2.9% 1.5% EBIT -4.4% -6.3% 0.4% 1.5% Geographical segments: Western Eu
Slide 6: Western Europe
2014 results – Copenhagen 20 February 2015 Western Europe (58% of 2014 sales) Some stabilisation. The negative trend observed in Q3 was reversed in Q4 with l-f-l sales up 2.6% mainly driven by Systems German market had a weak Q4 but underlying trend seems better. New government incentive program
Slide 7: Western Europe
2014 results – Copenhagen 20 February 2015 Western Europe (58% of 2014 sales) Scandinavia back to modest growth with good trends in DK, Norway and especially Sweden Upgrading of Danish factory proceeds well with expected opening Q3. The rebuilding means new technology, more efficient process and
Slide 8: Eastern Europe & Russia
2014 results – Copenhagen 20 February 2015 Eastern Europe & Russia (22% of 2014 sales) Q4 sales fell 1.5% like-for-like and was further impacted by a negative currency effect of 15.2% Russian market good but started to slow with project pipeline getting thinner Poland was stable Hungary also
Slide 9: North America
2014 results – Copenhagen 20 February 2015 North America (Together with Asia and rest of the world 20% of 2014 sales) Sales gained further momentum during Q4 and were up 17.4% like-for-like Sales in the US drove the growth whereas Canada was weaker Main insulation segments all developed positi
Slide 10: Asia
2014 results – Copenhagen 20 February 2015 Asia (Together with North America and rest of the world 20% of 2014 sales) Sales in China grew double-digit but competition remains intense. Only minor progress on stricter fire safety codes expected in May 2015 Sales and profitability in the Southeast
Slide 11: Systems business
2014 results – Copenhagen 20 February 2015 Systems business Continued progress in all business areas. Q4 sales increased by 4.6% including -0.5% currency effect Ceiling business continues to reap benefits from acquisition: Strong development in Europe based on integrated solutions Continued
Slide 12: Systems business
2014 results – Copenhagen 20 February 2015 Systems business ROCKPANEL business showed double digit growth despite relatively sluggish home markets in Benelux/Scandinavia Very good profitability despite significant investments in new products as well as marketing Continued expansion into under-
Slide 13: Systems business
2014 results – Copenhagen 20 February 2015 Systems business Strong performance by GRODAN business based on: Efficient cost /price management in European core markets Continued penetration into profitable DIY market in the US LAPINUS Fibres engineered fibres decreased sales but improving prod
Slide 14: EBITDA
2014 results – Copenhagen 20 February 2015 EBITDA EBITDA decreased by 0.5% of which-4.9% is due to the exchange rate effect and 2.9% is due to the acquisition effect. Like-for-like the EBTDA increased 1.5% 400 302.7 313.2 311.7 EUR million 300 240.5 243.9 208.4 200 100 24.1% 15.4% 1.4% 3.5% -0.5% 0
Slide 15: EBIT
2014 results – Copenhagen 20 February 2015 EBIT EBIT decreased by 4.4% of which -6.3% is due to exchange rate effect and 0.4% is due to the acquisition effect. Like-for-like EBIT increased 1.5% In Q4, the decrease was -31.7% compared to Q4 2013 of which -10.4% came from exchange rates and -2.4% was
Slide 16: EBIT per business segment
2014 results – Copenhagen 20 February 2015 EBIT per business segment EBIT in the Insulation segment decreased 18.2% of which -8.5% is due to exchange rate effect and -1.9% is due to the acquisition effect. Like-for-like the EBIT decreased 7.7%. Other significant effects are unplanned costs related t
Slide 17: EBIT for the period Q4 per business segment
2014 results – Copenhagen 20 February 2015 EBIT for the period Q4 per business segment EBIT in the Insulation segment decreased 49.3% of which -15.5% is due to the exchange rate effect and -3.2% is due to the acquisition effect. The remaining decrease is mainly due to significant running in cost for
Slide 18: Financial items
2014 results – Copenhagen 20 February 2015 Financial items 1 0 EUR million -1 -2 -2.3 -3 -4 -5 -6 -5.6 -6.2 -5.6 -6.3 -7 -7.4 -8 2009 2010 2011 2012 2013 2014 18
Slide 19: Effective tax percentage
2014 results – Copenhagen 20 February 2015 Effective tax percentage 40 37.0% 33.9% 35 30.7% 29.5% 29.5% 28.4% 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 19
Slide 20: Profit for the year
2014 results – Copenhagen 20 February 2015 Profit for the year 150 115.7 EUR million 112.6 103.8 100 83.6 72.1 47.0 50 0 2009 2010 2011 2012 2013 2014 20
Slide 21: Change in working capital
2014 results – Copenhagen 20 February 2015 Change in working capital 100 81.7 75 EUR million 50 25 -10.1 -6.6 -21.3 -1.6 -29.7 0 -25 -50 2009 2010 2011 2012 2013 2014 21
Slide 22: Inventories
2014 results – Copenhagen 20 February 2015 Inventories Raw materials increased primarily due to the new US factory while finished goods increased due to rather low sales in the last weeks of December and exceptional inventory to support sales development of ROCKFON products in US and Asia. 200 176.7
Slide 23: Debtors
2014 results – Copenhagen 20 February 2015 Debtors The HECK acquisition contributed with 2,9 mEUR debtors at year-end 250 220.7 207.3 211.1 187.6 202.2 EUR million 200 174.6 150 100 50 0 2009 2010 2011 2012 2013 2014 23
Slide 24: Investments and acquisitions
2014 results – Copenhagen 20 February 2015 Investments and acquisitions Out of the capacity investments, EUR 70.5 million is related to the new factory in US. The acquisition amount of EUR 25.4 million is related to the second instalment of Chicago Metallic. 300 265.3 257.3 25.4 EUR million 83.9 191
Slide 25: Cash flow
2014 results – Copenhagen 20 February 2015 Cash flow 400 EUR million 300 266.5 252.8 239.8 175.0 206.6 205.5 200 104.8 105.9 100 43.9 -17.1 -12.5 -51.8 0 -100 2009 2010 2011 2012 2013 2014 Cash flow from operating activities Free cash flow 25
Slide 26: Unplanned items and currency effects impacting the result
2014 results – Copenhagen 20 February 2015 Unplanned items and currency effects impacting the result Core business performance is reasonable in the current market. Full Year EBIT is negatively affected by following items of around € 20-25 mill. Currency effects especially related to rouble Hig
Slide 27: Expectations for 2015
2014 results – Copenhagen 20 February 2015 Expectations for 2015 Net sales growth to be slightly positive (incl. -2.5% FX) based on: Stable European markets Decline in Russia Very positive NA markets Solid sales development in South Asia but less positive in China System business to cont
Slide 28: Questions ?
2014 results – Copenhagen 20 February 2015 Questions ? 28
Slide 29: Long term sales development 1984-2015e
2014 results – Copenhagen 20 February 2015 Long term sales development 1984-2015e 2,500 2,250 EUR million 2,000 1,750 1,500 1,250 1,000 750 500 250 0 29
Slide 30: Long term EBIT ratio 1984-2015e
2014 results – Copenhagen 20 February 2015 Long term EBIT ratio 1984-2015e 20% Percentage 15% 10% 5% 0% Average over the last 30 years 30
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