Kingspan Group Plc · EURONEXT:KRX
Kingspan — FY2022 Earnings Presentation
32 slides from Kingspan's earnings presentation, February 2023
Slide 1: Full Year Results
Full Year Results February 2023
Slide 2: Disclaimer
Disclaimer Forward Looking Statements 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 forward-looking information involves risks and uncertai
Slide 3: 2022 in Summary
2022 in Summary Record year overall in a testing environment and a tougher second half. Revenue Insulated Panels sales increase of 23% driven by raw material price growth and a 46% increase in global sales volume of QuadCoreTM. Ground-breaking Lower €8.3bn Embodied Carbon (LEC) insulated panel
Slide 4: Our Mission
Our Mission To accelerate a net zero emissions future Ultra Energy-Efficient 173 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 2022 Net Zero Carbon Over 26%1 reduction in absolute Scope 1 &
Slide 5: Completing the Envelope
Completing the Envelope Roofing + Waterproofing Platform established Light + Air Global scale opportunity Global Leader 2% Revenue 8% Revenue Insulated Panels Global Leader Bio-based Building Materials 62% Revenue - Bio-based Insulation - Bio-based Structures PowerPanelTM Launched 2022 as part of In
Slide 6: Megatrends that Drive Us
Megatrends that Politics and Regulation Drive Us Averting a climate emergency Paris Agreement goal to limit the temperature increase above pre-industrial levels to 1.5ºC Market and Customers Sustainability and Resilience Society and Workforce Future proofing of asset values Resource Scarcity Health/
Slide 7: 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 8: Better Insulation is the Cornerstone of Envelope First
Performance needs Better Insulation is the Cornerstone of Envelope First CO2 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,
Slide 9: Solutions Driven Innovation QuadCore versus Synthetic Mineral Fibre
Solutions Driven Innovation QuadCore™ versus Synthetic Mineral Fibre 1 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
Slide 10: Decarbonisation strategy
Decarbonisation strategy 2020 2030 Key Suppliers Supplier engagement, collaboration and Supplier data investment tracking and analysis Lower embodied carbon materials Operations Renewable Energy Energy Efficiency Electrification Process Improvements Carbon Capture Lower embodied Net Zero Carbon Manu
Slide 11: 2022 Planet Passionate Progress
2022 Planet Passionate Progress UNDERLYING PROGRESS TOWARDS WHOLE BUSINESS BUSINESS TOPIC TARGET TARGET YEAR 2020 2022 TARGET INTENSITY REDUCTION 2020 2022 INDICATORS FROM BY 54% Net Zero Carbon Manufacturing (scope 1 & 2 GHG emissions1 - tCO2e) 2030 410,224 2 242,734 40.8% 517,972 2,3 385,157 3 Car
Slide 12: Global Organic Expansion
Global Organic Expansion Netherlands Northern Ireland PIR Board Line 2024 Sweden Mineral Insulation Plant Belgium Kooltherm® Facility 2021 2024-2025 Pipe Insulation Line 2024 Czech Republic Ireland PowerPanel™ Enablement 2023 Light + Air Facility 2021 MF Panel Line 2024 Ukraine Britain Building
Slide 13: Key Innovations
RooftricityTM PowerPanelTM 2022 1 Key Innovations 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 ® early 2023 (Cavity) 7 5 6 Green PowerPipe 2023 (ZeroCarb steel, 50% recycled core, 100% recycled jacket) 13 7
Slide 14: Progress So Far
Progress So Far 9.0 8.5 CAGR 17.6% Sales (€bn) 8.0 7.5 7.0 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 22 14
Slide 15: 5 Year Financial Performance
5 Year Financial Performance REVENUE (€m) TRADING PROFIT (€m) CAGR 17.5% CAGR 17.0% 8,340.9 833.2 754.8 6,497.0 508.2 497.1 4,659.1 4,576.0 4,372.5 445.2 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 15
Slide 16: Kingspan In a Nutshell
Kingspan In a Nutshell 20% 4% 62% Data + 8% Flooring Products 4% Water + Energy Insulation Light + Insulated Panels Air 2% Waterproofing Roofing + Revenue Drivers 85% 15% €8.3 billion Energy Efficiency & Conversion Other Geographic Regions 46% Western & 26% Central & 22% 6% Applications - Retail - D
Slide 17: Financial Highlights
Financial Highlights 2022 2021 YoY % Change cc change* Revenue (€m) 8,340.9 6,497.0 +28% +25% Trading Profit (€m) 833.2 754.8 +10% +7% Earnings per share (cent) 329.5 305.6 +8% Total Dividend (cent) 49.4 45.9 +8% Free Cashflow (€m) 392.5 127.1 +209% Net Debt (€m) 1,539.6 756.1 +104% Trading Margin 1
Slide 18: Trading Profit & Margin
Trading Profit & Margin TRADING PROFIT (€m) Trading Margin FY 22 FY 21 FY 20 Insulated Panels 10.6% 12.3% 11.0% Insulation 10.0% 12.4% 14.0% Roofing + Waterproofing 5.5% - - 833.2 754.8 Light + Air 7.5% 6.5% 7.0% Water + Energy 5.4% 7.6% 8.0% 508.2 497.1 445.2 Data + Flooring 12.0% 11.9% 13.1% Group
Slide 19: Group Sales & Profit Bridge
Group Sales & Profit Bridge REVENUE (€m) TRADING PROFIT (€m) 1,031.8 59.1 596.1 25.6 (6.3) 216.0 8,340.9 833.2 6,497.0 754.8 Revenue Currency Acquisitions Underlying Revenue Trading Profit Currency Acquisitions Underlying Trading Profit 2021 2022 2021 2022 19
Slide 20: Free Cash Flow (€m)
Free Cash Flow (€m) (136.2) (50.6) (31.9) (158.4) 998.3 (250.6) 21.9 392.5 EBITDA Working Capital Lease Payments Interest Tax Net Capex Non-cash items Free Cash Flow 20
Slide 21: Net Debt Reconciliation (€m)
Net Debt Reconciliation (€m) 97.2 24.7 45.4 2.0 113.3 893.4 1,539.6 (392.5) 756.1 Net Debt Dec 21 Free Cash Flow Acquisitions Purchase of Puchase non- Deferred Dividends Paid FX/Other Net Debt Dec 22 financial asset controlling consideration interests 21
Slide 22: Strong Balance Sheet
Strong Balance Sheet Net debt to EBITDA 1.62x as at 31 December 2022 Additional facilities of €800m arranged in the year Total available liquidity as at 31 December 2022 of €1.45 billion Weighted average maturity of Long Term Private Placement notes of 5.7 years West Gate, Belgium Insulated
Slide 23: ROCE Performance
ROCE Performance 19.5% 16.5%* 18.4% 17.3% 16.8% 15.9% 2018 2019 2020 2021 2022 TopTex, Belgium 23 Insulated Panels * After annualised impact of acquisitions
Slide 24: Sales by Geography
Sales by Geography YoY % 2021 2022 cc change* Change Western & Southern Europe 3,239.8 3,850.2 +19% +19% Central & Northern Europe 1,629.8 2,133.3 +31% +32% Americas 1,269.8 1,823.7 +44% +28% Rest of World 357.6 533.7 +49% +41% Total 6,497.0 8,340.9 +28% +25% 2021 2022 5% 6% 50% 46% Western & Southe
Slide 25: Insulated Panels
Insulated Panels Global and diverse nature of business reflected in the broad and varying performances of the different regional businesses and trends. Overall trading result demonstrated growth, albeit volumes became more challenged in H2. Advanced insulation cored products represented 85% of
Slide 26: Insulation
Insulation Worldwide sales grew by 40% over prior year with much of the growth delivered through pricing and acquisitions added during 2022. Sale volumes in Logstor®, now 25% of the division, grew by 18% in the second half of the year. Insulation board activity represents c. 60% of the divisio
Slide 27: Light + Air
Light + Air Business delivered strong progress in 2022. Notable growth in Central European and Southern European businesses. North America also improved its performance, enhanced by the Solatube® product set and business model. Going forward Light, Air and Water businesses will be reported a
Slide 28: Roofing + Waterproofing
Roofing + Waterproofing Year one for this new business marked by two meaningful acquisitions, Ondura and Derbigum. Annualised revenue run rate is approximately €500m. Combination brings Kingspan into both flat and pitched roof membrane solutions. Core basis of strategy is to create pull-thro
Slide 29: Data + Flooring
Data + Flooring Strong progress again on data side of the business. Large scale cloud services infrastructure continued to expand globally. Active pipeline of live projects gives confidence for further growth in 2023. 2022 2021 Sales (€m) 360.1 271.4 % of Group Sales 4% 4% Analysis of YoY % Ch
Slide 30: Water + Energy
Water + Energy Reasonably solid outcome for the year. Some recovery of position in Australian market. Margin pressures elsewhere reflecting the lag in recovery of raw material inflation. 2022 2021 Sales (€m) 287.1 261.3 % of Group Sales 4% 4% Analysis of YoY % Change Underlying Currency Acquis
Slide 31: Outlook
Outlook 2022 was a bumpy year with a strong performance in H1 giving way to a more subdued environment in H2 owing to a combination of war in Ukraine, the consequential steep energy and consumer inflation, and an industry overstocked due to supply chain concerns. More recent performance of busin
Slide 32: Dublin Road Kingscourt, Co Cavan Ireland
Dublin Road Tel: +353 42 969 8000 Kingscourt, Co Cavan Email: admin@kingspan.com Ireland, A82 XY31 www.kingspan.com