Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — ROCKWOOL International — Q1 2014 Earnings Presentation
29 slides from Rockwool A/S Class A's earnings presentation, May 23, 2014
Slide 1: 2014 Q1 results, Copenhagen
2014 Q1 results, Copenhagen - 23 May 2014 2014 Q1 results, Copenhagen 23 May 2014 CFO Gilles Maria 1
Slide 2: Forward-looking statement
2014 Q1 results, Copenhagen - 23 May 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 economic e
Slide 3: Group development
2014 Q1 results, Copenhagen - 23 May 2014 Group development 3
Slide 4: Highlights
2014 Q1 results, Copenhagen - 23 May 2014 Highlights Strong quarter with sales up 15% (8% acquisition effect, -5% currency effect) thanks to favourable weather and improved trading Insulation sales grew 9% (3% acq., -5% currency) and Systems sales 38% (30% acq., -2% currency) Moderate recovery
Slide 5: Western Europe
2014 Q1 results, Copenhagen - 23 May 2014 Western Europe (61% of Q1 sales) Sales increased by 12% (6% ex acquisitions) carried by slowly improving markets and favourable weather conditions Good performance in key markets such as Germany and Scandinavia whereas the French market is more challenge
Slide 6: Eastern Europe including Russia
2014 Q1 results, Copenhagen - 23 May 2014 Eastern Europe including Russia (19% of Q1 sales) Sales in the region increased 20% despite negative currency effect Russia showed solid development carried by favourable weather and sound market conditions Recovery in Poland continues Re-engineering
Slide 7: North America
2014 Q1 results, Copenhagen - 23 May 2014 North America (Together with Asia and rest of the world 20% of Q1 sales) Sales growth eased as a consequences of harsh weather conditions and limited available capacity Sales expected to rebound with promising outlook within key segments of DIY, flat roo
Slide 8: Asia
2014 Q1 results, Copenhagen - 23 May 2014 Asia (Together with North America and rest of the world 20% of Q1 sales) Continued good development in South East Asia China development continues to disappoint with no advance on fire safety regulation Harsh local competition and price pressure Tian
Slide 9: Systems business
2014 Q1 results, Copenhagen - 23 May 2014 Systems business Sales increased by 38% (10% like-for-like) with strong performances in especially the ROCKFON and ROCKPANEL businesses Acquisition of Chicago Metallic delivers sales in line with plans. Integration process expected finalised by end-year
Slide 10: Net sales
2014 Q1 results, Copenhagen - 23 May 2014 Net sales first quarter 2014 Based on unchanged exchange rate the increase is 19% compared to last year. Like-for-like the increase in net sales was 11% as the acquisitions contributed with 8% 484.5 500 437.0 422.6 393.4 400 340.7 338.6 EUR million 300 200 1
Slide 11: Geographical split of external net sales
2014 Q1 results, Copenhagen - 23 May 2014 Geographical split of external net sales Growth in Like-for- comparable like EUR million Q1 2014 Q1 2013 Growth rates growth Western Europe 296.6 265.4 12% 11% 4% Eastern Europe incl. Russia 93.8 78.0 20% 31% 31% North America, Asia and others 94.1 79.2 19%
Slide 12: Overview of exchange rate and acquisition effects
2014 Q1 results, Copenhagen - 23 May 2014 Overview of exchange rate and acquisition effects Actual Exchange Acquisition Like-for- % growth rate effect effect like growth Net sales 14,6% -4,6% 7,9% 11,4% EBITDA 22,0% -5,0% -1,5% 28,4% EBIT 38,6% -1,3% -15,4% 55,4% Segment accounts: External net sales
Slide 13: Energy prices
2014 Q1 results, Copenhagen - 23 May 2014 Energy prices 13
Slide 14: EBITDA
2014 Q1 results, Copenhagen - 23 May 2014 EBITDA first quarter 2014 Like-for-like the increase in EBITDA was 28% as the acquisitions contributed with minus 2% 80 68.7 70 60 55.3 55.5 50.9 EUR million 46.9 50 37.6 40 30 20 35% 24% 17% 10 -8% 1% 0 -10 2009 2010 2011 2012 2013 2014 EBITDA Changes 14
Slide 15: EBITDA per business segment
2014 Q1 results, Copenhagen - 23 May 2014 EBITDA first quarter 2014 per business segment The EBITDA distribution is changed retrospectively due to changed service level agreements between the segments and the shared functions 50 43.1 40 35.1 34.3 34.8 30.1 EUR million 29.3 30 20 13.5 12.8 14.4 9.6 8
Slide 16: EBIT
2014 Q1 results, Copenhagen - 23 May 2014 EBIT first quarter 2014 Like-for-like the increase in EBIT was 55% as the acquisitions contributed with minus 15% 50 40 28.4 EUR million 30 19.6 20.7 20.5 20 14.0 9.1 115% 39% 10 48% -29% -1% 0 2009 2010 2011 2012 2013 2014 -10 EBIT Changes 16
Slide 17: EBIT per business segment
2014 Q1 results, Copenhagen - 23 May 2014 EBIT first quarter 2014 per business segment The EBIT distribution is changed retrospectively due to changed service level agreements between the segments and the shared functions 11.8 12 10.9 10.1 10 9.2 8.3 7.9 7.4 8 EUR million 7.3 7.2 6.6 6.1 6.2 6 4.3 4
Slide 18: Financial items
2014 Q1 results, Copenhagen - 23 May 2014 Financial items first quarter 2014 1 0 EUR million -1 -1.1 -1.6 -2 -1.9 -2.1 -2.1 -2.1 -3 2009 2010 2011 2012 2013 2014 18
Slide 19: Profit for the period
2014 Q1 results, Copenhagen - 23 May 2014 Profit for the first quarter 2014 25 19.1 20 EUR million 13.3 15 13.4 11.4 10 8.0 5.6 5 0 2009 2010 2011 2012 2013 2014 19
Slide 20: Change in working capital
2014 Q1 results, Copenhagen - 23 May 2014 Change in working capital first quarter 2014 0 -11.0 -20 EUR million 32.6 -40 -37.4 -45.5 -53.0 -60 -66.6 -80 2009 2010 2011 2012 2013 2014 20
Slide 21: Stock end of period
2014 Q1 results, Copenhagen - 23 May 2014 Stock end of first quarter 2014 200 184.3 181.0 183.0 160.9 161.7 148.3 150 63.7 EUR million 80.4 115.1 124.3 83.9 85 76.0 100 63.1 119.3 50 100.6 72.3 77.0 77 60.0 52.0 0 2009 2010 2011 2012 2013 2013 YE 2014 Finished goods Raw material and consumables 21
Slide 22: Debtors end of period
2014 Q1 results, Copenhagen - 23 May 2014 Debtors end of first quarter 2014 300 241.8 250 225.3 218.2 214.0 201.1 EUR million 200 181.1 150 100 50 0 2009 2010 2011 2012 2013 2014 22
Slide 23: Investments and acquisitions
2014 Q1 results, Copenhagen - 23 May 2014 Investments and acquisitions first quarter 2014 80 70 60.4 60 EUR million 47.2 50 37.6 35.6 40 33.6 30 33.4 249 19.0 20 11.3 10 13.8 4.3 18.6 7.0 0 2009 2010 2011 2012 2013 2014 Capital Expenditure Acquisitions 23
Slide 24: Cash flow from operating activities and free cash flow
2014 Q1 results, Copenhagen - 23 May 2014 Cash flow from first quarter 2014 20 10.6 5.2 7.5 0 -3.4 -4.2 EUR million -6.6 -10.6 -20 -40 -36.6 -37.9 -37.9 -40.9 -60 -71.0 -80 2009 2010 2011 2012 2013 2014 Cash flow from operating activities Free cash flow 24
Slide 25: Expectations
2014 Q1 results, Copenhagen - 23 May 2014 Expectations 25
Slide 26: Full-year expectations
2014 Q1 results, Copenhagen - 23 May 2014 Full-year expectations Sales expected to increase by 12% including acquisitions and by 5% organic based on comparable rates Sales prices stable Raw materials and energy prices stable Net profit still expected to end around EUR 127 mill CAPEX excl.
Slide 27: Long term sales development 1984-2014e
2014 Q1 results, Copenhagen - 23 May 2014 Long term sales development 1984-2014e 2,500 2,250 2,000 EUR million 1,750 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 2014 27
Slide 28: Investments and acquisitions full year 2014e
2014 Q1 results, Copenhagen - 23 May 2014 Investments and acquisitions full year 2014e Where the acquisition amount in 2014 is one of the remaining down payments of Chicago Metallic 300 265.3 250 83.9 213.7 EUR million 192.1 1,689 200 25.7 161.4 162.6 4.2 13.5 133.8 150 109.8 81.0 31 101 98.4 85.1 8
Slide 29: Questions?
2014 Q1 results, Copenhagen - 23 May 2014 Questions ? 29
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