Kingspan Group Plc · EURONEXT:KRX
Kingspan — FY2023 Earnings Presentation
30 slides from Kingspan's earnings presentation, February 2024
Slide 1: Full Year Results February 2024
Full Year Results February 2024
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: 2023 in Summary
2023 in Summary Revenue €8.1bn Insulated Panels sales decrease of 9% with strong activity in France, the -3% US and LATAM offset by subdued volumes in Central and Eastern Europe and lower pricing due to input deflation. Trading Profit Insulation sales behind by 8%, driven by weak residential
Slide 4: Our Mission
Our Mission To accelerate a net zero emissions future Ultra Energy-Efficient 164 million tonnes of CO2e will built environment with the wellbeing of be saved over the life of our people and planet at its heart. insulation systems sold in 2023 Net Zero Carbon Over 65%1 reduction in absolute Scope 1 &
Slide 5: Sustainability targets and progress
UNDERLYING PROGRESS BUSINESS1 TOWARDS WHOLE BUSINESS2 INTENSITY REDUCTION TOPIC TARGET TARGET YEAR 2020 2023 TARGET 2020 2023 INDICATORS FROM B.Y. 76% Net Zero Carbon Manufacturing (scope 1 515,8134,5 178,6825 & 2 GHG emissions3 - tCO2e) 2030 409,7834 111,977 73% Carbon intensity Reduction 50% reduc
Slide 6: Sustainability achievements
300+ projects 337,000 + 740+ GWh 95 | 80+ GWh 800+ | 570+ tCO2e GHG renewable energy On-site renewable Electric forklifts emissions reduction consumption energy systems + EV chargers generation 6,200+ 49 | 70m+ litres 3 billion + 140+ Tonnes landfill Rainwater harvesting Recycled PP Communities avoi
Slide 7: Megatrends That Drive Us
Megatrends That Drive Us Politics and Regulation 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 8: Completing The Envelope
Completing The Envelope Roofing + Waterproofing Platform established Global scale opportunity 6% Revenue Light, Air + Water Global Leader 12% Revenue Bio-based Building Materials - Bio-based Insulation - Bio-based Structures PowerPanelTM Global innovation opportunity, 2024+ Insulated Panels Global L
Slide 9: The Full Spectrum
Performance The Full Spectrum needs 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, DE, IRL, IT, NL, NO, PO, ES, SE, UK)
Slide 10: Under One Roof
Under One Roof Maximum Thermal Non-critical Thermal Performance/Space Saving Applications - Vacuum Insulated Panels All materials Return on Investment - Kooltherm® including: - QuadCore - WoodWool - Optim-R® - HempWool Space - IPN Walkability Fire Compression Maximum Load Bearing Acoustics - XPS - P
Slide 11: Key Innovations
Key Innovations RooftricityTM PowerPanel 57% 1ST WoodCore Insulated Panel FULLY LESS Kooltherm® INTEGRATED 1ST EMBODIED INSULATE + CARBON GENERATE B SCALE BIOCORE CLASS INSULATED Recycled 86% PANEL RANGE Daylighting RECYCLED QuadCoreTM LEC AlphaCoreTM CONTENT 50% POST RMG 600+ Access Flooring System
Slide 12: Global Expansion
Belgium Global Expansion Pipe Insulation Line 2024 Data + Flooring Plant 2024 Germany PowerPanel Enablement 2026 Insulated Panel Plant 2024 Czech Republic Poland Ireland Mineral Fibre Panel Line 2024 Wood Fibre Insulation Facility 2024/25 PowerPanel Enablement 2024 PowerPanel Enablement 2026 Wood Fi
Slide 13: Progress So Far
Progress So Far 9.0 8.5 8.0 7.5 CAGR 16.8% 7.0 6.5 6.0 5.5 Revenue (€bn) 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 23 13
Slide 14: 5 Year Financial Performance
5 Year Financial Performance REVENUE (€m) TRADING PROFIT (€m) CAGR 14.8% CAGR 15.2% 8,340.9 8,090.6 876.9 833.2 6,497.0 754.8 4,659.1 4,576.0 497.1 508.2 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 14
Slide 15: In a Nutshell
In a Nutshell 6% Roofing 58% 19% 12% + Waterproofing Products Insulated Panels Insulation Light, Air + Water 5% Data + Flooring Revenue 85% 15% €8.1bn Drivers Energy Efficiency Other Geographic 45% 25% 23% 7% ROW Applications - Retail Regions Western and Southern Europe Central and Northern Americas
Slide 16: Financial Highlights
Financial Highlights 2023 2022 YoY % Change cc change* Revenue (€m) 8,090.6 8,340.9 -3% -2% Trading Profit (€m) 876.9 833.2 +5% +7% Earnings per share (cent) 352.3 329.5 +7% Total Dividend (cent) 52.9 49.4 +7% Free Cashflow (€m) 890.8 392.5 +127% Net Debt (€m) 979.5 1,539.6 -36% Trading Margin 10.8%
Slide 17: Trading Profit & Margin
Trading Profit & Margin TRADING PROFIT (€m) Trading Margin FY 2023 FY 2022 FY 2021 Insulated Panels 12.2% 10.6% 12.3% Insulation 9.5% 10.0% 12.4% Roofing + Waterproofing 5.7% 5.5% - 876.9 Light, Air + Water 8.1% 6.9% 6.7% 833.2 754.8 Data + Flooring 13.5% 12.0% 11.9% 508.2 Group 10.8% 10.0% 11.6% 49
Slide 18: Sales and Profit Bridge
Sales and Profit Bridge REVENUE (€m) TRADING PROFIT (€m) (104.6) 466.3 (612.0) (15.9) 30.3 29.3 8,340.9 8,090.6 833.2 876.9 Revenue 2022 Currency Acquisitions Underlying Revenue 2023 Trading Profit Currency Acquisitions Underlying Trading Profit 2022 2023 18
Slide 19: Sales by Geography
Sales by Geography 7% YoY % cc 45% 2023 2022 Change change* Western & Southern Europe 3,650.6 3,850.2 -5% -5% 2023 Central & Northern Europe 2,021.1 2,133.3 -5% -5% Americas 1,877.9 1,823.7 +3% +5% 23% Rest of World 541.0 533.7 +1% +10% Total 8,090.6 8,340.9 -3% -2% 25% * Constant currency change 6%
Slide 20: Free Cash Flow (€m)
Free Cash Flow (€m) 298.1 (233.5) (60.5) (36.3) (147.5) (15.9) 18.6 1,067.8 890.8 EBITDA Working Net Capex Lease Net Finance Tax Pension buy in Non-Cash Free Cash Capital Payments Costs Items Flow 20
Slide 21: Net Debt Reconciliation (€m)
Net Debt Reconciliation (€m) (890.8) (8.8) 22.2 (1.0) 6.6 92.1 1,539.6 219.6 979.5 Net Debt Dec Free Cash Flow Acquisitions Purchase of Increase in Deferred Dividends Paid FX/Other Net Debt Dec 22 financial asset non-controlling consideration 23 interests 21
Slide 22: Strong Balance Sheet
Strong Balance Sheet Net debt to EBITDA 0.97x as at 31 December 2023 New Private Placement issuance of €319m in June 2023 with a 6 year maturity Total available liquidity as at 31 December 2023 of €1.87bn Weighted average maturity of all outstanding Private Placement notes of 5 years 22
Slide 23: ROCE Performance and Working Capital
ROCE Performance WORKING CAPITAL* 19.5% 18.4% 17.3% 17.0% 15.9% 14.5% 13.8% 11.9% 11.3% 8.8% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 *% of Q4 sales annualised 23
Slide 24: Insulated Panels
Insulated Panels 2023 2022 • 2023 was characterised by an extraordinary mix of market Sales (€m) 4,722.1 5,181.5 activity globally. % of Group Sales 58% 62% • Whilst volumes were slightly ahead, revenue was down 9% Analysis of YoY % Change owing to the price deflation from raw material movements Und
Slide 25: Insulation
Insulation • A challenging year for the insulation category as many 2023 2022 new build residential markets were under considerable Sales (€m) 1,528.0 1,658.3 pressure coupled with deflation led by input prices. % of Group Sales 19% 20% • That said, overall business performance was reasonable in Ana
Slide 26: Roofing + Waterproofing
2023 2022 Roofing + Waterproofing Sales (€m) 493.4 153.2 • We are firmly on a path in the Roofing + Waterproofing % of Group Sales 6% 2% segment to develop a global presence covering Analysis of YoY % Change multiple technologies and combinations. Underlying Currency Acquisition Total -10% -5% +237%
Slide 27: Light, Air + Water
2023 2022 Light, Air + Water Sales (€m) 967.4 987.8 % of Group Sales 12% 12% • Positive year as trading margins progressed to 8.1% moving closer to our goal of exceeding 10%. Analysis of YoY % Change Underlying Currency Acquisition Total -1% -1% - -2% • Much of the last three years has been focused
Slide 28: Data + Flooring
2023 2022 Data + Flooring Sales (€m) 379.7 360.1 % of Group Sales 5% 4% • Significant year of progress for this Analysis of YoY % Change segment in 2023 with a marked shift in Underlying Currency Acquisition Total the scale of the opportunity for +6% -3% +2% +5% Kingspan. • Order intake significantl
Slide 29: Outlook
Outlook In the current environment it is difficult to predict what is in store near term with opportunities and challenges in equal measure. The performance of the business is varied across different geographies and sectors. It is still very much early days in the current financial year, althoug
Slide 30: Contact details
Dublin Road Kingscourt, Co Cavan Ireland, A82 XY31 Tel: +353 42 969 8000 Email: admin@kingspan.com www.kingspan.com 30