Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — ROCKWOOL International — H1 2014 Earnings Presentation

33 slides from Rockwool A/S Class A's earnings presentation, Aug 22, 2014

  1. Slide 1: Half-year results 2014 Copenhagen 22 August 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Half-year results 2014 Copenhagen 22 August 2014 CEO Eelco van Heel CFO Gilles Maria 1

  2. Slide 2: Forward-looking statement

    Half-year results 2014 - Copenhagen, 22 August 2014 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

  3. Slide 3: Highlights H1

    Half-year results 2014 - Copenhagen, 22 August 2014 Highlights H1  Satisfactory volume growth as a combination of hesitant recovery in Europe and good market conditions in Russia and North America  Margins improving slightly on a background of better capacity utilisation, stable sales prices and s

  4. Slide 4: Western Europe

    Half-year results 2014 - Copenhagen, 22 August 2014 Western Europe (59% of H1 sales)  Sales up 8% (1% like-for-like)  Continued hesitant recovery with positive market trends in Germany, Scandinavia, UK and Southern Europe  German business well supported by successful integration of HECK wall syst

  5. Slide 5: New EU Climate & Energy plan towards 2030

    Half-year results 2014 - Copenhagen, 22 August 2014 New EU Climate & Energy plan towards 2030  The current driver behind EU’s energy efficiency initiatives is the 2020 plan of a 20% consumption reduction compared to 2010. The building sector contribution:  New buildings: Building codes at passive

  6. Slide 6: Eastern Europe & Russia

    Half-year results 2014 - Copenhagen, 22 August 2014 Eastern Europe & Russia (21% of H1 sales)  Sales in the region grew 12% despite substantial negative exchange rate development  Solid performance in Russia which is expected to continue short term  Longer term we expect the Russian economy to be

  7. Slide 7: North America, Asia and Rest of the World

    Half-year results 2014 - Copenhagen, 22 August 2014 North America, Asia and Rest of the World (20% of H1 sales)  Sales increased 29% (13% like-for-like) in the region with North America showing the best performance on the back of strong US construction development  The Group’s successful market pe

  8. Slide 8: North America, Asia and Rest of the World (continued)

    Half-year results 2014 - Copenhagen, 22 August 2014 North America, Asia and Rest of the World (continued) Asia  South Asian region performed well supported by positive development of the technical insulation market  Positive sales trends in China but still on low level. Selected regions in Western

  9. Slide 9: Systems segment

    Half-year results 2014 - Copenhagen, 22 August 2014 Systems segment  Sales grew by 39% (6% like-for-like) with strong developments across most business areas. EBIT increased by 33%  The building-up of a global presence in the suspended ceiling segment goes ahead as planned 9

  10. Slide 10: A strong ceiling business

    Half-year results 2014 - Copenhagen, 22 August 2014 A strong ceiling business  The developement of a strong EUR 300 million ceiling business continues  Focus on roll-out of global concepts, streamlining of branding, and future ROCKFON ceiling panel production sourcing/production CMC metal ceiling

  11. Slide 11: Systems segment

    Half-year results 2014 - Copenhagen, 22 August 2014 Systems segment  Sales grew by 39% (6% like-for-like) with strong developments across most business areas. EBIT grew 33% impacted by increased depreciation of the acquired Chicago Metallic business  The building of a global presence in the ceilin

  12. Slide 12: Expectations for 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Expectations for 2014  Sales expected to increase by 12% and by 5% like-for-like  Raw materials and energy prices expected to be stable  Group tax rate expected to decrease by 1% point to 28.5%  Net profit still expected to end around EUR 127 m

  13. Slide 13: Financial

    Half-year results 2014 - Copenhagen, 22 August 2014 Financial 13

  14. Slide 14: Net sales H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Net sales H1 2014 Sales were up 8% in first-half 2014 on a like-for-like basis (comparable structure and exchange rates) 1.200 1.100 1,032 922 918 1.000 845 900 732 EUR million 800 698 700 600 500 400 300 16% 200 12% 5% 9% 100 0% 0 -100 2009 2010 2

  15. Slide 15: Geographical split of external net sales

    Half-year results 2014 - Copenhagen, 22 August 2014 Geographical split of external net sales Growth in Like-for-like comparable EUR million Q2 2014 Q2 2013 Growth growth rates Western Europe 611.7 566.4 8% 1% 9% Eastern Europe incl. Russia 219.8 196.1 12% 23% 23% North America, Asia and others 200.9

  16. Slide 16: Overview of exchange rate and acquisition effects for H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Overview of exchange rate and acquisition effects for H1 2014 Actual Exchange Acquisition Like-for-like % growth rate effect effect growth Net sales 12.4% -4.5% 9.1% 7.8% EBITDA 17.8% -4.6% 3.8% 18.7% EBIT 28.3% -6.3% 0.4% 34.2% Geographical segmen

  17. Slide 17: EBITDA H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 EBITDA H1 2014 EBITDA was up 19% in first-half 2014 on a like-for-like basis (comparable structure and exchange rates), as the impact of the acquisitions was 4% and the exchange rate was minus 5%. 180 160 153 131 140 128 116 EUR million 120 105 100

  18. Slide 18: EBIT H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 EBIT H1 2014 EBIT were up 34% in first-half 2014 on a like-for-like basis (comparable structure and exchange rates), as the exchange rate impact was minus 6% 76 80 70 58 59 60 51 EUR million 50 39 40 113% 30 24 47% 28% 20 10 -22% 2% 0 -10 2009 2010

  19. Slide 19: EBIT H1 2014 per business segment

    Half-year results 2014 - Copenhagen, 22 August 2014 EBIT H1 2014 per business segment The segment distribution is changed retrospectively due to changed internal reporting to better understand the operational businesses. Parent company costs and profit are now allocated to the relevant business segm

  20. Slide 20: EBIT ratio H1 2014 per business segment

    Half-year results 2014 - Copenhagen, 22 August 2014 EBIT ratio H1 2014 per business segment 16% 13.3% 14% 12.8% 13.1% 12.5% 12% 10.9% 10% 8% 5.3% 6% 5.2% 4.8% 4.6% 4.4% 4% 2.6% 2.6% 2% 0% 2009 2010 2011 2012 2013 2014 Insulation Segment Systems Segment 20

  21. Slide 21: Financial items H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Financial items H1 2014 1 0 EUR million -1 -2 -2.4 -3 -3.0 -3.2 -4 -4.0 -4.2 -4.4 -5 2009 2010 2011 2012 2013 2014 21

  22. Slide 22: Profit for the period H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Profit for the period H1 2014 60 52.6 50 39.2 EUR million 37.5 40 30.7 30 24.5 20 13.8 10 0 2009 2010 2011 2012 2013 2014 22

  23. Slide 23: Change in working capital H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Change in working capital H1 2014 40 21.3 20 0 EUR million -20 -40 -46.2 -48.4 -60 -58.1 -59.4 -80 -100 -97.6 -120 2009 2010 2011 2012 2013 2014 23

  24. Slide 24: Stock end of H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Stock end of H1 2014 Finished goods are planned high due to building of seasonal stock and new inventory from acquired businesses 220 201 200 17 173 175 180 162 160 EUR million 148 148 140 81 85 115 84 120 87 100 90 78 80 62 60 103 88 91 40 70 75 5

  25. Slide 25: Debtors end of H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Debtors end of H1 2014 The increase in debtors is primarily due to the acquired businesses 300 263 234 237 250 24 223 197 195 EUR million 200 150 239 100 50 0 2009 2010 2011 2012 2013 2014 Acquisitions 25

  26. Slide 26: Investments and acquisitions H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Investments and acquisitions H1 2014 140 128.6 120 102.9 100 4.2 EUR million 73.1 79.4 73.8 80 58.9 61.9 13.4 57.1 60 44.5 34.0 40 39.5 28.0 54.8 39.8 20 16.3 34.9 28.8 20.2 11.6 0 2009 2010 2011 2012 2013 2014 Maintenance CAPEX Capacity Program Ac

  27. Slide 27: Cash flow from H1 2014

    Half-year results 2014 - Copenhagen, 22 August 2014 Cash flow from H1 2014 100 84.5 80 60 47.7 47.3 38.7 38.7 34.4 EUR million 40 20 0 -9.8 -20 -18.4 -23.2 -40 -34.3 -31.6 -60 -80 -100 -94.2 2009 2010 2011 2012 2013 2014 Cash flow from operating activities Free cash flow 27

  28. Slide 28: Energy prices

    Half-year results 2014 - Copenhagen, 22 August 2014 Energy prices 28

  29. Slide 29: Rebuilding of the segment accounts for 2013

    Half-year results 2014 - Copenhagen, 22 August 2014 Rebuilding of the segment accounts for 2013 The segment distribution is changed retrospectively due to changed internal reporting to better understand the operational businesses. Parent company costs and profit are now allocated to the relevant bus

  30. Slide 30: Expectations

    Half-year results 2014 - Copenhagen, 22 August 2014 Expectations 30

  31. Slide 31: Long term sales development 1984-2014e

    Half-year results 2014 - Copenhagen, 22 August 2014 Long term sales development 1984-2014e The expectation for 2014 is including a 3% negative exchange rate effect 2.250 2.000 1.750 EUR million 1.500 1.250 1.000 750 500 250 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

  32. Slide 32: Investments and acquisitions full year 2014e

    Half-year results 2014 - Copenhagen, 22 August 2014 Investments and acquisitions full year 2014e Where the acquisition amount in 2014 is one of the remaining down payments of Chicago Metallic 300 265.3 255.7 250 25.7 83.9 EUR million 193.2 1,689 200 161.5 162.6 4.2 13.5 133.8 150 130.0 109.8 31 101

  33. Slide 33: Questions?

    Half-year results 2014 - Copenhagen, 22 August 2014 Questions? 33

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