Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — H1 2009 Earnings Presentation
34 slides from Rockwool A/S Class A's earnings presentation, Aug 28, 2009
Slide 1: H1 2009 results
H1 2009 results Copenhagen 28 August 2009 CEO Eelco van Heel CFO Gilles Maria 1 1
Slide 2: Forward-looking statement
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 environment, including interest and exchang
Slide 3: Agenda
Agenda 1. Welcome by CFO Gilles Maria 2. Financials by CFO Gilles Maria 3. Group development by CEO Eelco van Heel 4. Q&A 3 3
Slide 4: Financials
Financials 4 4
Slide 5: Net sales H1
Net sales H1 Market conditions in Q2 even tougher than in Q1 resulting in sales decrease by 21% 7000 6698 6577 6000 5304 5203 DKK mill. 5000 4490 4000 3000 2000 26% 18% 1000 0 -2% -21% -1000 2005 2006 2007 2008 2009 Net sales Changes 5 5
Slide 6: EBITDA H1
EBITDA H1 stands at 11% of Net Sales and is slightly better in Q2 than in Q1 1800 1647 1600 1400 DKK mill. 1200 1156 1000 896 800 622 598 600 400 84% 200 44% -48% 0 -30% -200 2005 2006 2007 2008 2009 EBIT Changes 6 6
Slide 7: EBIT H1 ratio
EBIT H1 ratio stands at 3.5% of net sales reflecting sales price decrease and still low benefit from input costs 1400 1301 1200 DKK mill. 1000 773 800 600 459 183% 400 320 177 200 43% 0 -77% -41% -200 2005 2006 2007 2008 2009 EBIT Changes 7 7
Slide 8: EBIT H1 per business segment
EBIT H1 per business segment 1300 1230 1200 1100 1000 900 DKK mill. 800 700 662 600 500 400 361 297 300 200 104 160 100 16 7 41 58 59 7 53 12 0 -100 -36 2005 2006 2007 2008 2009 Insulation Systems Division Elim. & Holding companies 8 8
Slide 9: Energy spot prices
Energy spot prices have continued to decrease Indexed spotprices of oil, foundry coke, gas and electricity 2005-2009 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
Slide 10: Financial items H1 2009
Financial items H1 2009 5 3 0 0 -5 DKK mill. -10 -15 -20 -18 -25 -24 -30 -29 -35 2005 2006 2007 2008 2009 10 10
Slide 11: Group committed credit facilities
Group committed credit facilities 2009-2014 4000 3500 3000 2500 Mill DKK 2000 1500 1000 500 0 Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014
Slide 12: Profit H1 after minority interests
Profit H1 after minority interests 1000 905 900 800 700 DKK mill. 600 538 500 400 303 300 200 200 90 100 0 2005 2006 2007 2008 2009 12 12
Slide 13: Change in working capital H1
Change in working capital H1 200 164 100 2 DKK mill. 0 -100 -91 -200 -300 -314 -363 -400 2005 2006 2007 2008 2009 13 13
Slide 14: Stock end of H1
Stock end of H1 1600 1345 1400 1323 1200 1168 DKK million 1000 960 735 864 881 733 800 496 409 600 400 610 200 455 464 402 435 0 2006 2007 2008 2008 end Q4 2009 Finished goods Raw material and consumables 14 14
Slide 15: Debtors end of H1
Debtors end of H1 2000 1839 1800 1743 1600 1467 1466 1459 1400 1306 DKK mill. 1200 1000 800 600 400 200 0 2005 2006 2007 2008 2008 2009 end Q4 15 15
Slide 16: Investments and acquisitions H1
Investments and acquisitions H1 1500 1392 1250 DKK million 1000 932 750 750 659 449 168 500 440 411 491 250 460 310 0 2005 2006 2007 2008 2009 Maintenance CAPEX Capacity program 16 16
Slide 17: Cash flow from H1 2009
Cash flow from H1 2009 1200 1094 1000 800 663 613 532 600 435 DKK mill. 400 156 200 122 0 -200 -137 -294 -400 -600 -729 -800 2005 2006 2007 2008 2009 Cash flow from operations Free cash flow 17 17
Slide 18: Cost reduction programme (accumulated figures)
Cost reduction programme (accumulated figures) 600 550 500 450 400 Mill DKK 350 300 250 200 150 100 50 0 2H 2008 1H 2009 2H 2009 1H 2010 Savings plan A Savings plan B Plan A Q3 2008 Additional Plan B Q2 2009 18 18
Slide 19: Expectations for 2009
Expectations for 2009 Net sales are now expected to decrease by 22% (or 18% based on comparable exchange rates). Net profit for the year is reduced to DKK 200 million including DKK 85 million for restructuring and reorganization costs, equivalent to an operational EBIT ratio around 4.5%. Capit
Slide 20: Group development
Group development 20 20
Slide 21: Key trends
Key trends The market situation has further deteriorated in Q2. No improvement is expected for the remainder of 2009. The newbuild private market remains in many places at a historical low level in both non-residential and residential segments. The renovation and public activities are performing
Slide 22: Key trends, cont.
Key trends, cont. Price levels are rather stable under the circumstances in the major part of the business but remain under continued pressure in Central and Eastern Europe (now back at 2006 level). Raw material prices continue to decrease as expected. This will benefit the Group’s H2 performanc
Slide 23: Construction region 1: The collapsed markets in Europe
Construction region 1: The collapsed markets in Europe • In UK, construction activity is at a very low level but we see positive effects from governmental programmes to increase energy efficiency in buildings. • The Spanish market continues to deteriorate. 23 23
Slide 24: Construction region 2: More resilient markets in Western Europe
Construction region 2: More resilient markets in Western Europe • The main markets in France and Germany remain strong due to governmental stimulus packages. • Scandinavia is down and recently Benelux has weakened. Governmental stimulus packages not always targeted optimally. • Sales price levels ar
Slide 25: Construction region 3: Eastern Europe still down
Construction region 3: Eastern Europe still down • Region still severely depressed with the exception of Poland with relatively strong residential new built market. • Russian market has gone down dramatically but higher energy prices will trigger a quick recovery. • Sales prices have gone down in al
Slide 26: North American insulation market
North American insulation market The US housing market is in very early stage of recovery. The effect of the administration’s stimulus packages is not yet felt in the construction sector at large but should gradually take effect in the coming quarters. Canadian market still holding up well. Pr
Slide 27: Governmental support packages start to kick in
Governmental support packages start to kick in and will increase in importance The effect of the stimulus packages in countries such as Germany, France and UK can now be felt in the renovation and public segments. The Group estimates the positive effect on our sales to be in the range of DKK 1 bn.
Slide 28: Systems Division
Systems Division The Rockfon Group continues to outperform the market. The important summer renovation activities of schools has brought high activity. The Rockpanel activities are hit by the downturn in residential construction. Both the Grodan and RockDelta activities are performing well.
Slide 29: Rockfon Group continues to outperform
Rockfon Group continues to outperform Rockfon represents approx. 10% of the Group’s turnover and is an important contributor to its EBIT. Rockfon is the market leader in the premium segment of the 175 mill. m2 European suspended ceiling market. The ceiling market is expected to decrease strong
Slide 30: Rockfon Group continues to outperform
Rockfon Group continues to outperform Main reasons for the success: Excellent product properties (e.g. sound absorption and insulation, fire performance, humidity resistance, easiness of installing) and innovative and customer-oriented product development. Growth strategy in lower market share
Slide 31: Streamlining the company
Streamlining the company The process of adapting the organisation to the new market environment proceeds: over the last year the head count has been brought down by 10%. 2 plants have been closed, 4 lines are being mothballed and many production lines have stopped week-end production. This is po
Slide 32: Strategic expansion projects
Strategic expansion projects Dahej, India 30.000 tons Construction work started Start-up in 2011 Volga, Russia 100-120.000 tons Preparations started 32 32
Slide 33: Acquisition possibilities
Acquisition possibilities The already strong capital structure of the company has recently been strengthened even further. The company is in an optimal position to take over struggling companies which fit with our strategy. Various targets are being investigated. 33 33
Slide 34: Questions
Questions ROCKWOOL www.stoplocalwarming.com STOP LOCAL WARMING