Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — Rockwool International — H1 2008 Earnings Presentation

29 slides from Rockwool A/S Class A's earnings presentation, Aug 29, 2008

  1. Slide 1: Rockwool International A/S H1, 29 August 2008 Carnegie

    Rockwool International A/S H1, 29 August 2008 Carnegie CEO Eelco van Heel CFO, Gilles Maria 1

  2. 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

  3. Slide 3: Main results from H1 2008 - by CFO Gilles Maria

    Main results from H1 2008 - by CFO Gilles Maria 3

  4. Slide 4: Net sales H1

    Net sales H1 - decreased by 2% but 24% higher than first half 2006 7000 6698 6577 6500 6000 5304 DKK million 5500 5000 4490 4500 4097 4000 3500 3000 26% 2500 18% 2000 1500 10% 1000 500 -2% 0 -500 2004 2005 2006 2007 2008 Net sales Changes 4

  5. Slide 5: EBIT H1

    EBIT H1 - decreased by 41% but 68% higher than first half 2006 1301 1300 1300% 1150 1150% DKK million 1000 1000% 850 850% 773 700 700% 550 550% 459 400 400% 320 213 250 183% 250% 100 50% 43% 100% -41% -50 -50% 2004 2005 2006 2007 2008 EBIT Changes 5

  6. Slide 6: EBIT H1 per business segment

    EBIT H1 per business segment 1230 1200 950 DKK million 662 700 450 361 297 226 200 104 58 59 41 10 -23 16 7 12 6 -50 2004 2005 2006 2007 2008 Insulation Systems Division Elim. & Holding companies 6

  7. Slide 7: Financial items H1 an income

    Financial items H1 an income 10 3,6 0,3 0 DKK million -10 -20 -18 -30 -29 -40 -45 -50 2004 2005 2006 2007 2008 7

  8. Slide 8: Profit H1 after minority interests

    Profit H1 after minority interests - decreased by 41% but 78% higher than first quarter 2006 1000 905 900 800 DKK million 700 600 538 500 400 303 300 200 200 110 100 0 2004 2005 2006 2007 2008 8

  9. Slide 9: Investments and acquisitions H1

    Investments and acquisitions H1 - increased by 111% 1600 1392 1400 DKK million 1200 1000 800 659 600 449 411 400 300 200 0 2004 2005 2006 2007 2008 9

  10. Slide 10: Stocks

    Stocks 1345 1400 1200 1062 DKK million 960 1000 864 776 800 600 400 200 0 2004 2005 2006 2007 2008 10

  11. Slide 11: Inflationary pressure increasing

    Inflationary pressure increasing ƒ Wages ƒ Moderate/strong increases depending on country ƒ Oil-related transport & materials ƒ Strong price increases ƒ Electricity and Gas ƒ Strong price increases ƒ Coke ƒ Price increases growing less rapidly but 2009 prices will probably still be at very high leve

  12. Slide 12: Spotprice of Chinese foundry coke increasing

    Spotprice of Chinese foundry coke increasing supported by sharp increases in coking coal 900 USD Average per ton FOB 800 700 600 500 400 300 200 100 0 jun-03 jun-04 jun-05 jun-06 jun-07 June-08 12

  13. Slide 13: Volatility of Coke is apparent

    Volatility of Coke is apparent Indexed spotprices of oil, foundry coke, gas and electricity 2003-2008 (Q1, 2003 = 100) 700 600 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 13

  14. Slide 14: Expectations for 2008

    Expectations for 2008 ƒ Sales for the year will be slightly below 2007 level ƒ Net profit for the year of DKK 1,100 mill equivalent to an EBIT ratio of 11.7% ƒ Capital expenditure is expected at DKK 2.3 billion 14

  15. Slide 15: 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 15

  16. Slide 16: 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 16

  17. Slide 17: Group development - by CEO Eelco van Heel

    Group development - by CEO Eelco van Heel 17

  18. Slide 18: General picture

    General picture ƒ The effects of the deteriorating economic situation puts the Rockwool Group in a challenging situation: Weaker markets, lower production capacity utilisation and high inflation on energy related costs ƒ However, the Group is convinced that the long-term prospects remain promising a

  19. Slide 19: European insulation market

    European insulation market ƒ The widening financial crisis with its continued negative effect on interest levels and investment activities has a more dramatic effect on the insulation market than expected after Q1 ƒ The newbuild activity in Western Europe is still decreasing. The downturn is most no

  20. Slide 20: Energy saving renovation projects are getting more and more attractive

    Energy saving renovation projects are getting more and more attractive ƒ Villa in Denmark from 1927 ƒ Renovated in 2004 Pay-back: 5 years at ƒ Investment: DKK 157,000 current oil price ƒ Energy consumption before: 5300 liter oil/year ƒ Energy saving: 57% ƒ CO2-reduction: 8 tonnes/year ƒ Current oilp

  21. Slide 21: European insulation market

    European insulation market ƒ The slowdown has spread to Central and Eastern Europe where the market situation is becoming more challenging with more projects being postponed ƒ Some countries are severely hurt by drastic reduction of foreign financing for their infrastructure and industrial projects

  22. Slide 22: Estimated 2008 growth in European construction markets

    Estimated 2008 growth in European construction markets Insulation market trends: Sources: Euroconstruct for EU and own estimates for other countries 22

  23. Slide 23: North American insulation market

    North American insulation market ƒ Despite the downturn especially in newbuild residential, North America remains an attractive market for stonewool ƒ Energy efficiency in buildings has become a hot topic also here leading to better insulation and strengthened building codes ƒ Even under the current

  24. Slide 24: Asian insulation operations expanded

    Asian insulation operations expanded ƒ Joint venture between Rockwool International A/S (75%) and KAEFER Punj Lloyd Limited India (25%) – one af the local market leaders for installation of technical insulation – for construction of a factory in India ƒ Total investment EUR 18,5 mill. ƒ Capacity 30.

  25. Slide 25: Sandwich panels and fire safety

    Sandwich panels and fire safety ƒ A growing segment as ready-made systems are taking share from ”build-on-site” especially in commercial buildings. The driver is project lead time and building cost ƒ The European sandwich panel market is estimated at € 4.2 bill. corresponding to approx. 2 mill. tonn

  26. Slide 26: Systems Division markets

    Systems Division markets ƒ Nice progress in both sales and profitability ƒ Very strong development in the 2 building sector related business Rockfon and Rockpanel 26

  27. Slide 27: Investment plan continues

    Investment plan continues ƒ 2008 projects within EU (PL, GB) and are on track ƒ These new production lines are equipped with our own developed competitive packaging solution ƒ This additional capacity will be necessary to meet the effect of EU energy efficiency measures on mid/long-term and will mak

  28. Slide 28: Croatia

    Croatia ƒ Approval delivered by authorities in July ƒ Factory now again in test-operation since 20 August 2008 ƒ Test operation will last for max. 6 months (20 February 2009) after which final permit will be obtained ƒ Ramp-up should be easier as most of the personnel has stayed since the temporary

  29. Slide 29: Questions

    Questions 29

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