Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — Rockwool International — Q3 2008 Earnings Presentation
30 slides from Rockwool A/S Class A's earnings presentation, Nov 21, 2008
Slide 1: Rockwool International A/S Q3, 21 November 2008 LD Markets
Rockwool International A/S Q3, 21 November 2008 LD Markets 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: Main results from Q3 2008
Main results from Q3 2008 3
Slide 4: Net sales acc. Q3
Net sales acc. Q3 - decreased by 2% compared to 2007 - Q3 decreased by 3% to DKK 3,504 million 11000 10.297 10.081 10000 DKK million 9000 8.224 8000 7.077 7000 6.404 6000 5000 4000 3000 26% 18% 2000 10% 1000 -2% 0 2004 2005 2006 2007 2008 -1000 Net sales Changes 4
Slide 5: EBIT acc. Q3
EBIT acc. Q3 -decreased by 42% but 46% higher than acc. Q3 2006 2100 2.025 1900 1700 DKK million 1500 1300 1.176 1100 900 807 700 596 500 383 300 183% 100 50% 43% -42% -100 2004 2005 2006 2007 2008 EBIT Changes 5
Slide 6: EBIT acc. Q3 per business segment
EBIT acc. Q3 per business segment 1950 1.879 1700 1450 DKK million 1200 1.032 950 690 700 543 450 393 200 124 132 30 60 57 22 10 -29 24 13 -50 2004 2005 2006 2007 2008 Insulation Systems Division Elim. & Holding companies 6
Slide 7: Financial items acc. Q3 balanced
Financial items acc. Q3 balanced 20 10,8 10 5,6 0 DKK million -10 -20 -30 -33,6 -40 -44,0 -50 -60 -65,3 -70 2004 2005 2006 2007 2008 7
Slide 8: Strong financial structure
Strong financial structure - equity ratio at 68.1% - unutilised committed credit facilities at DKK 833 million 2500 2250 DKK million 2000 1750 1.270 1500 1250 883 1000 690 750 733 1.188 101 500 1.021 743 777 671 711 621 615 615 250 423 344 450 366 513 520 321 315 143 0 Q4 2006 Q1 2007 Q2 2007 Q3 200
Slide 9: Strong financial structure
Strong financial structure - the largest capacity programme ever is being self financed 4500 4000 DKK million 3500 3000 2500 4.468 2000 3.956 1500 1000 500 0 Acc. Previous 8 quarters Cash from operations Investments 9
Slide 10: Profit acc. Q3 after minority interests
Profit acc. Q3 after minority interests - decreased by 43% but 54% higher than acc. Q3 2006 - tax percentage changed from 27.5% to 29.0% 1600 DKK million 1.414 1400 1200 1000 802 800 600 521 400 359 205 200 0 2004 2005 2006 2007 2008 10
Slide 11: Investments and acquisitions acc. Q3
Investments and acquisitions acc. Q3 - increased by 82% 2013 2100 1800 DKK million 1500 1200 1109 900 655 683 600 437 300 0 2004 2005 2006 2007 2008 11
Slide 12: Investments and acquisitions 2008
Investments and acquisitions 2008 - Basic investments excluding capacity program 2700 2.500 2400 DKK million 2100 1800 1.621 1.581 1500 1200 944 1.004 1.168 900 258 704 600 944 919 300 704 746 453 0 2004 1 2005 2 2006 3 2007 4 2008e 5 Basic Capacity program 12
Slide 13: Stocks
Stocks 1.360 1400 1200 1.053 DKK million 1000 927 800 800 747 600 400 200 0 2004 2005 2006 2007 2008 13
Slide 14: Inflationary pressure still high but signs that it has peaked are visible
Inflationary pressure still high but signs that it has peaked are visible Wages Moderate/strong increases depending on country Oil-related transport & materials Some price significant decreases recently Electricity and Gas No visible trend yet but some price corrections expected in the d
Slide 15: Spot price of Chinese foundry coke start to decrease
Spot price of Chinese foundry coke start to decrease 1.200 USD Average per ton FOB 1.000 800 600 400 200 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 15
Slide 16: Price has peaked and gap has been reduced
Price has peaked and gap has been reduced. Indexed spot prices of oil, foundry coke, gas and electricity 2004-2008 (Q1, 2004 = 100) 400 350 E D 300 PD AT 250 E U O B 200 150 T 100 50 2003 2004 2005 2006 2007 2008 0 2004 2005 2006 2007 2008 16
Slide 17: Expectations for 2008
Expectations for 2008 The market development is very difficult to predict due to the worldwide financial turmoil. Expectations for 2008 sales remain slightly below last year Expectations for 2008 net result after minority interests is now DKK 1,000 million including provisions for reorganising a
Slide 18: Long term sales development 1984-2008e
Long term sales development 1984-2008e 14000 12000 DKK million 10000 8000 6000 4000 2000 0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008e 18
Slide 19: Long term EBIT ratio 1984-2008e
Long term EBIT ratio 1984-2008e 20% 18% 16% Percentage 14% 12% Goal 11% 10% 8% 6% 4% 2% 0% 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008e 19
Slide 20: Group development
Group development 20
Slide 21: General picture
General picture The economic situation has deteriorated further during the last months leading to weaker markets and lower production capacity utilisation. The inflation is on a high level but have peaked To be optimally prepared for the worsening short-term outlooks, a restructuring plan has be
Slide 22: European insulation market
European insulation market The widening financial crisis with its continued negative effect on business confidence and construction activities is increasingly impacting the insulation market The newbuild activity in Western Europe continues to decrease. The downturn is most notably in residentia
Slide 23: European insulation market
European insulation market In Central and Eastern Europe the market downturn has been more dramatic than in the west The price level is under pressure in most markets in CEE Despite the fact that the financial turmoil has also reached Russia, the Russian insulation market is still performing b
Slide 24: European insulation markets trends
European insulation markets trends 24
Slide 25: North American insulation market
North American insulation market Despite the downturn especially in newbuild residential, North America remains an attractive market. Even under the current difficult situation, we outperform the market significantly thanks to our strong position in the Canadian retail DIY and in the commercial/in
Slide 26: Systems Division markets
Systems Division markets Continued nice progress in both sales and profitability and no impact from financial crisis so far Very strong development in the 2 building sector related business Rockfon and Rockpanel which are both more exposed to public/semi-public sectors than the insulation busine
Slide 27: Don't expect the Energy Efficiency train to slow down
Don’t expect the Energy Efficiency train to slow down EPBD 2 New Climate agreement EPBD 1 In Copenhagen? Kyoto agreement EU Action Plan (20/20 target) ESD 1997 2002 2006 2007 2009 2010 Adoptions of major Energy Efficiency initiatives 27
Slide 28: New European legislation on energy efficiency in buildings
New European legislation on energy efficiency in buildings Recast of the EPBD proposed by the Commission on 13 November will strengthen demands: All buildings in Europe undergoing a major renovation will have to meet minimum national energy efficiency standards and not just buildings over 1,000
Slide 29: Production platform
Production platform 2007 project continued: Croatian factory performing well during test run 2008 projects within EU (PL, GB) have now been completed Quick ramp-up in PL GB new line started 3 November 2009 projects and beyond are all outside the EU New Canadian line will open in spring 2
Slide 30: Questions
Questions 30
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