Kingspan Group Plc · EURONEXT:KRX
Kingspan — FY2021 Earnings Presentation
33 slides from Kingspan's earnings presentation, February 2022
Slide 1: Full Year Results
Full Year Results February 2022
Slide 2: Disclaimer
Disclaimer Etihad Arena, Abu Dhabi, UAE Insulated Panels Forward Looking Statements KingZip This presentation contains certain forward-looking statements including, without limitation, the Group’s financial position, business strategy, plans and objectives of management for future operations. Such f
Slide 3: 2021 in Summary
2021 in Summary Unprecedented raw material inflation with strong price recovery effort Strong underlying volume growth of 13% and 11% in Insulated Panels and Insulation Insulated Panels sales increase of 45% driven by strong momentum in construction REVENUE activity and raw material led pric
Slide 4: Our Mission
Our Mission To accelerate a net zero emissions future Ultra Energy-Efficient 193 million tonnes of CO2e will built environment with the wellbeing of be saved over the life of our people and planet at its heart. insulation systems sold in 2021 Net Zero Carbon Over 4%1 reduction in absolute Scope 1 &
Slide 5: The Envelope and the Arteries
The Envelope and the Arteries Water & Energy Flat Roof Membrane Light & Air Global Leader Embryonic position presently – Global Leader 4% Revenue global scale opportunity 9% Revenue Technical Insulation Developing position presently – global scale opportunity Insulated Panels Global Leader 65% Reven
Slide 6: Megatrends That Drive Us
Megatrends That Drive Us Politics and Regulation Averting a climate emergency Paris Agreement goal to limit the temperature increase above pre-industrial levels to 1.5 ºC Market and Customers Sustainability and Resilience Society and Workforce Future proofing of asset values Resource Scarcity Health
Slide 7: Building(s) For The Future
Building(s) For The Future Auto and Battery Logistics and Data Centre Solutions The Space Economy Manufacturing Distribution Global sales of Western Europe Global mobile data The global space economy electric cars grew e-commerce sales grew traffic has grown generates approximately 11% 10x $350bn ov
Slide 8: IPCC 1.5ºC – AECOM Research
IPCC 1.5ºC – AECOM Research1 Embodied carbon in buildings also needs to The rate of retrofits be reduced through needs to dramatically low carbon accelerate and extend to deep energy materials and building designs. refurbishment: 4%/year Refurbishment is inherently lower embodied carbon than new-bui
Slide 9: Better Insulation is the Cornerstone of Envelope First
Better Insulation is the Cornerstone of Envelope First 1 Insulation performance (R-value) compared to rock mineral fibre of the same thickness. 2 The thermal conductivity range is based on major insulation manufacturers’ websites in key European markets (AT, BE, CZ, DK, FI, FR, DE, IRL, IT, NL, NO,
Slide 10: Product Integrity
Product Integrity Leading Standard in Compliance Oversight Framework 17 Kingspan Group’s Compliance Kingspan Compliance Team Lead Product Compliance 90 function has been accredited to audited Officers appointed across the ISO 37301 business. manufacturing facilities in 2021. An additional 27 complia
Slide 11: Solutions Driven Innovation
Solutions Driven Innovation QuadCore™ versus Synthetic Mineral Fibre1 Market and Sustainability and Society and Politics and Customers Resilience Workforce Regulation 25% lower panel system cost2 297 fewer truck deliveries to site 12% savings in installation time (faster build programme) 40year up t
Slide 12: Space Matters
Space Matters UK Industrial/Office Description Value Kingspan External Wall Kingspan QuadCoreTM Construction KS1000RW sandwich panels Lettable floor area 35,800 sq.m (385,348 sq.ft) Additional floor area 87.10 sq.m (937.54 sq.ft) Additional development cost £71,379 Capitalised value of £275,667 addi
Slide 13: 2021 Planet Passionate Progress
2021 Planet Passionate Progress Target Change Metric 2020 2021* Change Target Year Progress towards target INTENSITY INDICATORS YoY CARBON 29% GHG emissions - scope 1 & 21 (tCO2e) 312,640* 299,077 -4.3% Net Zero Carbon 2030 4% Carbon Decrease in product CO2e intensity from primary intensity 0 0 - 50
Slide 14: Circularity & QuadCore – the LIFECycle approach
Circularity & QuadcoreTM – the LIFECycle approach Factory Processes By 2030, all factories across the world making QuadCoreTM panels will be zero waste to landfill. Input Materials QuadCoreTM panels Extended Life contain up to 25% recycled steel and will contain recycled QuadCoreTM’s feedstocks in r
Slide 15: Global Organic Expansion
Global Organic Expansion Netherlands PIR Board Line 2024 Sweden Belgium Kooltherm® Facility 2021 Pipe Insulation Line 2024 Ireland Czech Republic Light & Air Facility 2021 PowerPanel Enablement 2023 Britain MF Panel Line 2024 PowerPanel Enablement 2022 Romania Pipe Insulation Line 2023 PIR/MF Pa
Slide 16: Key Innovations
RooftricityTM PowerPanelTM 2022 Key Innovations 1 A-Class OPTIM-R® 2024 2 1 B-Class Kooltherm® 2023 3 3 4 6 QuadCoreTM 2.0 Coldstore 2023 4 2 LoCarb Insulated Panel 2023 5 AlphaCore ® late 2022/early 2023 (Cavity) 7 5 6 Green PowerPipe 2023 (ZeroCarb steel, 50% recycled core, 100% recycled jacket) 7
Slide 17: Progress So Far
Progress So Far 7.0 CAGR 17.2% Sales (€bn) 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 17
Slide 18: 5 Year Financial Performance
5 Year Financial Performance REVENUE (€M) TRADING PROFIT (€M) CAGR 15.4% CAGR 18.9% 6,497.0 754.8 4,659.1 4,576.0 4,372.5 508.2 497.1 3,668.1 445.2 377.5 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 18
Slide 19: 2021 In a Nutshell
2021 In a Nutshell 9% 65% 18% Light & Air Products 4% Data & Flooring Insulated Panels Insulation 4% Water & Energy Revenue Drivers 85% 15% €6.5 billion Energy Efficiency & Conversion Other Geographic Regions 50% Western & 25% Central & 20% 5% ROW Applications - Retail - Distribution Northern Europe
Slide 20: Financial Highlights
Financial Highlights 2021 2020 YoY % Change cc change* Revenue (€m) 6,497.0 4,576.0 +42% +42% Trading Profit (€m) 754.8 508.2 +49% +49% Earnings per share (cent) 305.6 206.2 +48% Total Dividend (cent) 45.9 20.6 +123% Free Cashflow (€m) 127.1 479.7 -74% Net Debt (€m) 756.1 236.2 +220% Trading Margin
Slide 21: Trading Profit & Margin
Trading Profit & Margin Trading Margin FY 21 FY 20 FY 19 Insulated Panels 12.3% 11.0% 10.4% Insulation 12.4% 14.0% 13.4% TRADING PROFIT (€m) Light & Air 6.5% 7.0% 7.7% Water & Energy 7.6% 8.0% 6.8% Data & Flooring 11.9% 13.1% 11.4% Group 11.6% 11.1% 10.7% 754.8 508.2 497.1 445.2 377.5 2017 2018 2019
Slide 22: Group Sales & Profit Bridge
Group Sales & Profit Bridge REVENUE (€M) TRADING PROFIT (€M) 6,497.0 1,402.1 754. 189.8 8 (10.9) 529.8 (0.5) 57.3 4,576.0 508.2 Revenue Currency Acquisitions Underlying Revenue Trading Currency Acquisitions Underlying Trading 2020 2021 Profit 2020 Profit 2021 22
Slide 23: Free Cash Flow (€m)
Free Cash Flow (€m) Working Capital/Sales Dec 21 13.8% Dec 20 8.8% Dec 19 11.9% Dec 18 11.5% Dec 17 12.4% (429.3) 893.2 (38.6) (34.5) (126.8) (163.6) 19.8 6.9 127.1 EBITDA Working Lease Interest Tax Net Capex Provision Non-cash Free Cash Flow Capital Payments Movement items 23
Slide 24: Net Debt Reconciliation (€m)
Net Debt Reconciliation (€m) (13.6) 73.5 46.9 540.2 756.1 (127.1) 236.2 Net Debt Dec 20 Free Cash Flow Acquisitions Repurchase of Dividends Paid FX/Other Net Debt Dec 21 Shares 24
Slide 25: Strong ROCE
Strong ROCE Inter Miami Club, Miami, USA Kingspan Panels 19.5 % 18.4 % 17.8 % 17.3 % 16.8 % 2017 2018 2019 2020 2021 25
Slide 26: Sales by Geography
Sales by Geography 50% 2021 5% 2021 €m 2020 €m YoY % Change cc change* Western & Southern Europe 3,239.8 2,377.2 +36% +35% 20% 25% Central & Northern Europe 1,629.8 997.8 +63% +64% Americas 1,269.8 916.0 +39% +43% 52% Rest of World 357.6 285.0 25% +24% Total 6,497.0 4,576.0 +42% +42% 2020 6% Western
Slide 27: Insulated Panels
Insulated Panels Cuisine Solutions San Antonio, USA AWIP Activity was particularly strong throughout the year Sales volumes reached a record at almost 80 million m2, order intake volume was up by 20% and backlog ended the year 28% ahead Quadcore™ comprised 16% of insulated panel order intake v
Slide 28: Insulation
Insulation Stockholm, Sweden Insulation Sales volumes in the first half were particularly healthy, easing back somewhat in the latter half as the distribution network began to unwind high inventories accumulated during the period of rising prices earlier in the year Overall sales volume for the
Slide 29: Light & Air
Light & Air The Edge Amsterdam, NL Light & Air This relatively new segment for the Group has been rapidly evolving with global revenue for the year of €552.2m Organic growth in 2021 amounted to a modest 1% and the contribution of the Colt Group acquisition delivered €178m of revenue in 2021 Re
Slide 30: Water & Energy
Water & Energy 2021 2020 Sales (€m) 261.3 202.7 % of Group Sales 4% 4% Division delivered a good performance despite the headwinds presented by market constraints in Australia Analysis of YoY % Change Focus of the business unit is water related storage, heating, Underlying Currency Acquisition T
Slide 31: Data & Flooring
Data & Flooring California Dept of General Services California, USA Data & Flooring Business unit offers both office flooring solutions and multiple data centre offerings, primarily designed to conserve the use of power in the storage and management of data 2021 2020 While office sector has been
Slide 32: Outlook
Outlook Kartapur Airport India Kingspan Panels 2022 has started well helped by the strong order backlog at the end of last year Raw material prices remain elevated with no evidence of the situation changing significantly Trading outlook beyond the first quarter is less visible, although the pr
Slide 33: Dublin Road Kingscourt, Co Cavan Ireland
Dublin Road Kingscourt, Co Cavan Ireland, A82 XY31 Tel: +353 42 969 8000 Email: admin@kingspan.com www.kingspan.com 33