Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — FY2009 Earnings Presentation
43 slides from Rockwool A/S Class A's earnings presentation, Mar 11, 2010
Slide 1: 2009 results
2009 results Copenhagen 11 March 2010 CEO 1 Eelco van Heel CFO Gilles Maria 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
& en & ~ 4 Say y vot
Slide 5: Net sales 2009
Net sales 2009 - decreased by 18.5% compared to 2008 13908 13700 14000 13000 12000 11537 11168 11000 DKK million 10024 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 21% 15% 0 -1% -18% -1000 2005 2006 2007 2008 2009 Net sales Changes 5 5
Slide 6: EBITDA 2009
EBITDA 2009 stands at 14% of Net Sales 3500 3391 3000 DKK million 2500 2373 2122 2000 1500 1529 1500 1000 24% 18% 17% 15% 14% 500 0 2005 2006 2007 2008 2009 EBITDA EBITDA Ratio 6 6
Slide 7: EBIT ratio 2009
EBIT ratio 2009 stands at 5.2% of net sales and 6.6% after correction of restructuring and reorganization costs 2800 2705 2600 2400 DKK million 2200 2000 1800 1600 1502 1405 1400 1200 885 1000 800 576 600 400 20% 5% 200 12% 9% 11% 0 2005 2006 2007 2008 2009 EBIT EBIT Ratio 7 7
Slide 8: EBIT per business segment
EBIT per business segment 2700 2396 2200 DKK million 1700 1150 1162 1200 813 700 544 318 332 107 171 84 239 200 8 -8 -34 -300 -207 2005 2006 2007 2008 2009 Insulation Systems Division Elim. & Holding companies 8 8
Slide 9: Financial items
Financial items of which approx. DKK -15 million yearly costs to increase credit facilities 30 21 20 DKK million 10 8 0 -10 -20 -30 -34 -40 -43 -42 -50 2005 2006 2007 2008 2009 9 9
Slide 10: Energy spot prices
Energy spot prices Indexed spotprices of oil, foundry coke, gas and electricity 2005-2009 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 05 06 07 08 09 2 3 4 2 3 4 2 3 4 2 3 4 2 3 4 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 20 20 20 20 20 1 1 1 1 1 Q Q Q Q Q 10 10
Slide 11: Profit after minority interests
Profit after minority interests including DKK 90 million for restructuring and reorganization costs in 2009 2500 1966 2000 DKK million 1500 950 1004 1000 574 500 322 0 2005 2006 2007 2008 2009 11 11
Slide 12: Change in working capital
Change in working capital 800 598 600 DKK million 400 200 0 -4 -200 -138 -141 -400 -468 -600 2005 2006 2007 2008 2009 12 12
Slide 13: Inventories
Inventories 1600 1267 1323 1400 40 30 1200 DKK million 1000 744 769 661 801 800 881 7 21 22 600 413 436 478 400 576 200 312 402 324 301 0 2005 2006 2007 2008 2009 Work in progress Finished goods Raw material and consumables 13 13
Slide 14: Debtors
Debtors 1800 1600 1536 1446 1471 1400 1279 1299 DKK million 1200 1000 800 600 400 200 0 2005 2006 2007 2008 2009 14 14
Slide 15: Investments and acquisitions
Investments and acquisitions 3000 2642 2500 DKK million 2000 1621 1689 1500 1170 944 1004 1000 1126 357 416 634 500 953 587 588 495 536 0 2005 2006 2007 2008 2009 Other CAPEX Capacity programme + acquisitions 15 15
Slide 16: Cash flow
Cash flow 2600 2400 2480 2200 2000 1800 1950 1600 1810 1507 DKK million 1400 1200 1000 859 1103 800 780 600 160 805 400 200 0 -200 -400 -600 -800 -1000 -1200 -1135 2005 2006 2007 2008 2009 Cash flow from operations Free cash flow 16 16
Slide 17: Expectations for 2010
Expectations for 2010 Net sales decrease of 5-10%. Profit after minority interests around DKK 300 million. Investment level excluding acquisitions around DKK 1,000 million including completion of our Indian project and continuation of preparation of the new Russian factory in the Volga region.
Slide 18: Key elements 2010
Key elements 2010 Sales volume Negative carryover from 2009 in the new build segments Positive refurbishment trend in Western Europe Sales prices Carry over from Eastern Europe correction Opportunities in some countries/segments Input costs Risk on raw material inflation Average co
Slide 19: Group development
Group development 19 19
Slide 20: Highlights
Highlights COP15 substantially increased the political awareness of the priority to be given to energy efficient buildings – in all climate zones of the globe Construction activity level in Europe seems to have bottomed out – at a low level. Stimulus packages result in relative strong performanc
Slide 21: COP15 – a success despite lack of a legally binding agreement
COP15 – a success despite lack of a legally binding agreement Danish government made a heroic effort within the restrictions of the UN system to come to the most optimal result Energy efficiency in buildings and its effect on CO2 emissions as well as the general economy was put and will remain h
Slide 22: Market region Europe
Market region Europe 22 22
Slide 23: European insulation market 2010
European insulation market 2010 Plastic foam 40-45% Other 5% Market size €6.5 bill Glass wool 25-30% Stone wool 25-30% 23 23
Slide 24: Construction region 1: The collapsed markets in Europe
Construction region 1: The collapsed markets in Europe • In UK, construction activity is at a low level but we see small signs of recovery in residential newbuild and positive effects from government programmes. • The Spanish market continues to deteriorate. • Ukraine, Hungary and Baltics still seve
Slide 25: 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 relatively strong supported by government stimulus packages. • Scandinavia and Benelux develop more negatively. • Sales price levels are holding up. 25 25
Slide 26: Construction region 3: Eastern Europe still down
Construction region 3: Eastern Europe still down • Region still depressed with the exception of Poland showing strength in residential new built market. • Russian market has now bottomed out and is expected to recover rather quickly. • Sales prices have gone down but are now stabilising 26 26
Slide 27: Full effect in 2010 of strong government actions
Full effect in 2010 of strong government actions in important Western European countries Germany: EUR 17 billion to support energy efficiency in buildings UK: CERT programme (Carbon Emissions Reduction Target): EUR 4 billion to support energy efficiency in buildings France: All public building
Slide 28: European legislation creates long-term growth perspectives
European legislation creates long-term growth perspectives New, tightened EPBD2 will stimulate EU insulation demand especially in existing building stock Renovation of existing buildings Energy requirements for major renovations now includes all buildings, also <1,000 m2 Stricter energy requir
Slide 29: Energy Services Directive
Energy Services Directive Partnerships with energy providers EU member states are required to improve energy efficiency by minimum 9% from 2008 to 2016. In some EU countries, major parts of the savings requirements have been transferred to energy providers. Energy providers in UK and Denmark
Slide 30: Restructuring to make the company lean
Restructuring to make the company lean 600 550 500 450 400 350 Mill DKK 300 250 Fixed cost savings of 200 DKK 550 mill. 150 No. of employees 100 reduced by approx. 50 15% 0 2H 2008 1H 2009 2H 2009 1H 2010 Step 1 realised Step 2 to be realised Step 1 planned Step 2 planned Restructuring of prod
Slide 31: Market region Russia
Market region Russia 31 31
Slide 32: Russian insulation market 2010
Russian insulation market 2010 Plastic foam 29% Market size € 0.7 bill Glass wool 26% Stone wool 45% 32 32
Slide 33: Russian economy will improve fast
Russian economy will improve fast Market downturn has bottomed out and the Group is expecting a rather fast increase in activities, accelerating further in 2011 and 2012. New energy efficiency legislation passed by the Duma end November 2009 will be an important driver. This new legislation ta
Slide 34: Major Russian centres of population
Major Russian centres of population St.PETERSBURG ARKHANGELSK 850 km NORTHWEST MOSCOW FAR EAST CENTER N.NOVGOROD YAKUTSK 1030 km VOLGA URAL KAZAN YEKATERINBOURG SOUTH 870 km SIBERIA Chelyabinsk Rostov Ufa Samara Omsk NOVOSIBIRSK KHABAROVSK KZ IRKUTSK VLADIVOSTOK Population more than 1 mio 34 34
Slide 35: Market region North America
Market region North America 35 35
Slide 36: North American insulation market 2010
North American insulation market 2010 Glass wool 50-55% Stone wool 5% Market size € 5.5 bill. Other 15-20% Plastic foam 25-30% 36 36
Slide 37: North American insulation market supported by stimulus packages
North American insulation market supported by stimulus packages Construction market has reached the bottom; US newbuild residential slightly on the way up? US legislation will stimulate renovation Stimulus funds largely unspent and will be consumed in 2010; $ 11 billion for a.o. energy efficie
Slide 38: North American sales growth
North American sales growth The Rockwool Group is able to grow despite an insulation market that was down 20% on average. Still very low market share with plenty of room to grow. Growth most evident in residential DIY segment, especially in Canada. Successful start in USA DIY & flat roof seg
Slide 39: Market region Asia
Market region Asia 39 39
Slide 40: China and Southeast Asia
China and Southeast Asia Insulation market is completely unconsolidated with hundreds of producers. Other 8% Glass wool 12% Plastic foam 72% Market size € 2.5 bill. Stone wool 8% 40 40
Slide 41: China and Southeast Asia
China and Southeast Asia The Chinese market is by far the biggest in the Far East representing approx. 80% of the total market in the region. Urbanisation and industrialisation are the main drivers behind newbuild activities and will continue to fuel the growth of the insulation market. The hu
Slide 42: Indian market driven by infrastructure
Indian market driven by infrastructure Insulation market in emerging countries develops in 3 phases: 1. Establishment of infrastructure (energy supply) e.g. power plants, pipelines, etc. technical insulation market. 2. Reduction of heating/cooling costs and improved comfort in offices non reside
Slide 43: Questions
Questions 43 43