Rockwool A/s Class A · OMXCOP:ROCK_A
Rockwool A/s Class A — ROCKWOOL International — FY2018 Earnings Presentation
19 slides from Rockwool A/s Class A's earnings presentation, 2019
Slide 1: Full year & Q4 2018 Financial Results
Full year & Q4 2018 Financial Results
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: Highlights 2018
Highlights 2018 Sales of Sales increase in local currencies EUR 2,671 million 14.7% up 12.5% in reported figures incl. 2.7 percentage points from Flumroc EBIT of EBIT margin of EUR 341 million 12.8% up 33% over last year up 2.0 percentage points Free cash flow of Net profit EUR 196 million EUR 265 m
Slide 4: Highlights Q4
Highlights Q4 Sales of Sales increase in local currencies EUR 709 million 11.1% up 10.3% in reported figures incl. 1.1 percentage points from Flumroc EBIT of EBIT margin of EUR 83 million 11.7% up 15% over last year up 0.5 percentage points Free cash flow of Net profit EUR 58 million EUR 66 million
Slide 5: 2018 sales growth of 14.7%
2018 sales growth of 14.7% NET SALES EURm Sales grew 14.7% in local currencies including +14.7% Flumroc, and reached EUR 2,671 million. +12.5% Sales increased 12.5% in reported figures with a negative currency effect of 2.2 percentage points. Reported figures Flumroc contributed with 2.7 percentage
Slide 6: Q4 sales growth of 11.1%
Q4 sales growth of 11.1% NET SALES EURm Sales grew 11.1% in local currencies including 1.1 percentage point from Flumroc. +11.1% +10.3% Sales increased 10.3% in reported figures with a negative currency effect of 0.8 percentage point. Reported figures Local currencies 709 644 Q4 2017 Q4 2018 NET SAL
Slide 7: Regional developments Q4
Regional developments Q4 Growth in local currencies Key developments Share of Sales Growth in most key markets Western Europe Especially UK, Norway, Sweden and the Netherlands 9.3% performing well UK approves ban on combustibles on high-rise residential 59% 9.4% incl. FX effect buildings Goo
Slide 8: Profitability
Profitability +14% EURm 138 132 +15% 125 119 EBITDA up 14% to EUR 125 million in Q4 2018 109 112 103 94 97 91 86 Q4 EBITDA margin of 17.6%, increased mainly due 76 73 83 70 EBITDA to higher sales prices. 58 63 46 EBIT Together with good factory performance, these factors offset the pressure from
Slide 9: Another good quarter for Insulation; Better Systems performance
Another good quarter for Insulation EBIT EURm +16% Insulation EBIT increased 16% to EUR 63 million in Q4 2018 63 +13% 55 EBIT margin improved 0.4 percentage points to 10.4%. Q4 2017 Q4 2018 Most markets contributed positively. 18 20 Insulation Systems Better Systems performance EBIT-MARGIN (%) S
Slide 10: Net cash position up significantly
Net cash position up significantly Cash flow from operations before financial items and tax was EUR 152 million in Q4 2018, which is EUR 24 million higher than same period last year, mainly from higher EBIT. FREE CASH FLOW EURm Q4: EUR 32m NWC decreased to 7.4% (2017: 8.0%) of net sales, increas
Slide 11: Investment activities
Investment activities Investments totaled EUR 222 million in 2018 (2017: EUR 130 million) excluding acquisitions and proceeds from sale of listed equities. Capacity investment amounted to EUR 108 million, mainly from the factory project in West Virginia, the new factory in Romania and an upgrade o
Slide 12: Outlook for 2019
Outlook for 2019 12
Slide 13: Outlook 2019
Outlook 2019 1. Sales Growth in net sales is expected to be 4-8% in local currencies. EBIT margin is expected to reach 2. EBIT around 12%. Investment level excluding 3. INVESTMENT acquisitions is expected to be around EUR 330 million. 13
Slide 14: Trends over the business cycle - Revenue
Trends over the business cycle - Revenue Revenue potential • There are several macro trends that support a long- term above average market growth for the stone wool market. • We are conscious of our exposure to a downturn in the business cycle. • We estimate that just under half of the Group’s reven
Slide 15: Trends over the business cycle - Earnings
Trends over the business cycle - Earnings Earnings potential • Leverage on growth based on the current high output and utilization level will be constrained until we have increased capacity in high-demand areas. • We want to continue invest in further product innovation; new technology including aut
Slide 16: Trends over the business cycle - Investments
Trends over the business cycle - Investments Investments • New manufacturing lines, whether greenfield or expansions of existing sites, bring costs for start-up and protective capacity, which affect the earnings in the mid-term. • The last 10 years’ average investment ratio has been around 11%, whil
Slide 17: Key figures for the Group
Key figures for the Group EURm Q4 2018 Q4 2017 YoY (%) FY 2018 FY 2017 YoY (%) Income statement Net Sales 709 644 10.3% 2,671 2,374 12.5% EBITDA 125 109 14.3% 507 417 21.5% EBIT 83 73 15.0% 341 258 32.5% Profit before tax 85 93 -8.6% 335 275 22.0% Profit for the period 66 79 -16.4% 265 214 24.2% Bal
Slide 18: Questions?
Questions? 18
Slide 19: ROCKWOOL International A/S contact details
ROCKWOOL International A/S Hovedgaden 584 DK-2640 Hedehusene Denmark CVR No. 54879415 Tel: +45 46 56 03 00 www.rockwoolgroup.com 19
ROCKWOOL International — FY2018 Earnings Presentation on 6ix