Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — Q3 2011 Earnings Presentation
28 slides from Rockwool A/S Class A's earnings presentation, Nov 24, 2011
Slide 1: Q3 results, Copenhagen 24 November 2011
Q3 result – Copenhagen 2011 Q3 results, Copenhagen 24 November 2011 CFO Gilles Maria 1
Slide 2: Forward-looking statement
Q3 result – Copenhagen 2011 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, in
Slide 3: Group development
Q3 result – Copenhagen 2011 Group development 3
Slide 4: Highlights
Q3 result – Copenhagen 2011 Highlights The macro-economic picture getting bleaker but still no concrete signs of market impacts in terms of order intake/project cancellations etc. Insulation volumes continue to show healthy trends in the key markets, especially outside EU. Insulation sale prices con
Slide 5: Western Europe
Q3 result – Copenhagen 2011 Western Europe Germany and France still lead the market development but also positive trends in Scandinavia. Markets in NL, Spain and UK are challenging. Prices continue recovering. The residential market is still in better shape than non-residential. Renovation continues
Slide 6: Central / Eastern Europe
Q3 result – Copenhagen 2011 Central / Eastern Europe Polish market is showing accelerating growth and better profitability. Neighbouring countries also on good track whereas the South Eastern part of the region is still suffering. Acquisition of Polish company FAST expected to be closed within few w
Slide 7: Russia
Q3 result – Copenhagen 2011 Russia In Q3, confirmation of an exceptionally strong volume growth. Good sales price development but also reflecting high inflation level. Currency movements not favourable. Factory Volga factory project to be delivered Volga project in February 2012 gradually replacing
Slide 8: North America
Q3 result – Copenhagen 2011 North America Profitable volume growth continues in NA. with current expansion rate we will be out of capacity within 2 years. Sales price development satisfactory. Factory Sales in the US grow even faster than in Canada. Good progress in sales through Lowe’s DIY stores i
Slide 9: Asia
Q3 result – Copenhagen 2011 Asia Strong development in China and South-East Asia. Continued very positive sales development backed by imports from Europe. In China, new regulations on fire safety of buildings are increasing the opportunities for non-combustible Sales office products. Factory Indian
Slide 10: Financials
Q3 result – Copenhagen 2011 Financials 10
Slide 11: Net sales Q3 2011
Q3 result – Copenhagen 2011 Net sales Q3 2011 10,297 10,500 10,081 9,937 952.0% 9,500 8,472 8,500 7,995 752.0% DKK mill. 7,500 6,500 552.0% 5,500 4,500 352.0% 3,500 2,500 1,500 152.0% -2% -21% 6% 17% 500 -500 -48.0% 2007 2008 2009 2010 2011 Net sales Changes Net sales from acquisitions 11
Slide 12: EBITDA Q3 2011
Q3 result – Copenhagen 2011 EBITDA Q3 2011 2,800 440% 2,537 2,400 340% 2,000 DKK mill. 1,764 1,600 240% 1,319 1,306 1,200 1,010 800 140% 400 31% -43% -1% 40% -30% 0 -400 2007 2008 2009 2010 2011 -60% EBITDA EBITDA Q3 Period Changes 12
Slide 13: EBIT Q3 2011
Q3 result – Copenhagen 2011 EBIT Q3 2011 2,025 2,000 1,600 320% DKK mill. 1,176 1,200 220% 800 613 575 120% 340 80% 400 -42% -71% -6% 20% 0 -400 2007 2008 2009 2010 2011 -80% EBIT EBITDA Q3 Period Changes 13
Slide 14: EBIT Q3 per business segment 2011
Q3 result – Copenhagen 2011 EBIT Q3 per business segment 2011 2,000 1,879 DKK mill. 1,500 1,032 1,000 500 384 364 299 205 219 124 131 94 22 13 -53 24 -8 0 2007 2008 2009 2010 2011 -500 Insulation System Division Elim. & Holding companies 14
Slide 15: Financial items Q3 2011
Q3 result – Copenhagen 2011 Financial items Q3 2011 20 11 6 10 DKK mill. 0 -10 -20 -24 -30 -40 -38 -44 -50 2007 2008 2009 2010 2011 15
Slide 16: Profit Q3 after minority interests 2011
Q3 result – Copenhagen 2011 Profit Q3 after minority interests 2011 1,600 1,414 1,400 DKK mill. 1,200 1,000 802 800 600 346 383 400 170 200 0 2007 2008 2009 2010 2011 16
Slide 17: Change in working capital Q3 2011
Q3 result – Copenhagen 2011 Change in working capital Q3 2011 500 441 400 DKK mill. 300 200 105 100 0 -100 -107 -200 -168 -221 -300 2007 2008 2009 2010 2011 17
Slide 18: Stock end of Q3 2011
Q3 result – Copenhagen 2011 Stock end of Q3 2011 1,600 1,400 DKK mill. 1,200 45 542 1,000 800 361 671 535 600 500 818 400 632 462 200 419 301 0 2007 2008 2009 2010 2011 Finished goods Raw material and consumables Acquisitions 18
Slide 19: Debtors end of Q3 2011
Q3 result – Copenhagen 2011 Debtors end of Q3 2011 2,000 1,773 1,803 1,800 1,565 1,398 1,600 DKK mill. 1,466 1,299 1,400 1,200 1,000 800 600 400 200 0 2007 2008 2009 2010 2010 YE 2011 19
Slide 20: Cash flow from Q3 2011
Q3 result – Copenhagen 2011 Cash flow from Q3 2011 2,500 2,114 2,000 DKK mill. 1,500 1,196 1,225 1,006 866 929 1,000 500 107 27 0 -500 231 -1,000 -817 2007 2008 2009 2010 2011 Cash flow from operations Free cash flow 20
Slide 21: Investments and acquisitions
Q3 result – Copenhagen 2011 Investments and acquisitions 2,500 2,013 2,000 DKK mill. 1,500 1,287 1,109 994 902 1,000 759 101 802 594 353 453 500 726 231 307 400 348 175 0 2007 2008 2009 2010 2011 Maintenance CAPEX Capacity programme Acquisitions 21
Slide 22: Energy prices
Q3 result – Copenhagen 2011 Energy prices Indexed spotprices of oil, foundry coke, gas and electricity 2005-2011 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2007 2008 2009 2010 2011 22
Slide 23: Expectations
Q3 result – Copenhagen 2011 Expectations 23
Slide 24: Expectations for 2011
Q3 result – Copenhagen 2011 Expectations for 2011 Net sales at unchanged exchange rates is expected to increase by 15% for the full year 2011 compared to last year. The Group confirms its expectations for the year of a result after minority interests of DKK 550 million. Capital expenditure excluding
Slide 25: Long term sales development 1984-2011e
Q3 result – Copenhagen 2011 Long term sales development 1984-2011e 16,000 14,000 12,000 DKK mill. 10,000 8,000 6,000 4,000 2,000 0 25
Slide 26: Long term EBITDA ratio 1984-2011e
Q3 result – Copenhagen 2011 Long term EBITDA ratio 1984-2011e 25% 20% Percentage 15% 10% 5% 0% 26
Slide 27: Long term EBIT ratio 1984-2011e
Q3 result – Copenhagen 2011 Long term EBIT ratio 1984-2011e 20% 15% Percentage Goal 11% 10% 5% 0% 27
Slide 28: Questions
Q3 result – Copenhagen 2011 Questions 28