Kingspan Group Plc · EURONEXT:KRX
Kingspan — FY2014 Earnings Presentation
29 slides from Kingspan's earnings presentation, Feb 23, 2015
Slide 1: Kingspan 2014 Full Year Results
Kingspan 2014 Full Year Results 23rd February 2015
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements including, without limitation, regarding the Group’s financial position, business strategy, plans and objectives of management for future operations. Such forward- looking information involves risks a
Slide 3: The Business
The Business A global leader in high performance insulation and building envelopes Market leading positions in UK, Mainland Europe, North America and Australasia Proprietary technology drives differentiation in product performance 59% INSULATED PANELS 25% INSULATION BOARDS 8% 8% ACCESS FLOORS
Slide 4: 2014 in a Nutshell
2014 in a Nutshell 1.9 149 Billion Million 4
Slide 5: Our Strategy
Our Strategy Lead the field in high performance insulation globally with proprietary and differentiating technologies Become the world’s leading provider of low energy building solutions – Insulate & Generate Achieve greater geographic balance, primarily focusing on The Americas, Western Europ
Slide 6: 5 Year Financial Performance
5 Year Financial Performance Revenue (€’m) (CAGR 12.2%) 1,891.2 1,776.8 1,546.9 1,628.7 1,193.2 2010 2011 2012 2013 2014 Trading Profit (€’m) (CAGR 19.8%) 148.5 122.8 107.7 95.7 72.0 2010 2011 2012 2013 2014 6
Slide 7: 2014 In Summary
2014 In Summary Revenue up 6% Insulated Panels sales up 7% and trading profit up to €1.89bn 18%, reflecting continuing penetration gains, a positive business mix and an improvement in end markets in key regions. Insulation Boards sales up 8% and trading profit up 35%, with a good performance in
Slide 8: Financial Highlights
Financial Highlights 2014 2013 Change Revenue (€m) 1,891.2 1,776.8 +6% Trading Profit (€m) 148.5 122.8 +21% EBITDA (€m) 189.3 162.5 +16% Earnings per share (cent) 62.6 €x 51.7 +21% Total Dividend (cent) 16.25 14.00 +16% Free Cashflow (€m) 109.3 78.2 +40% Net Debt (€m) 125.5 106.7 +18.8m Trading Marg
Slide 9: Trading Profit & Margin Progression
Trading Profit & Margin Progression Trading Profit Margin % 125.0 100.0 FY 12 FY 13 FY 14 Insulated 7.3% 7.3% 8.0% Panels 75.0 148.5 Insulation 6.3% 6.7% 8.4% Boards 122.8 €’m 107.7 Environmental 0.7% 1.0% 0.8% 50.0 95.7 Access Floors 9.9% 10.5% 11.7% 72.0 Group 6.6% 6.9% 7.9% 25.0 0.0 FY '10 FY '11
Slide 10: Strong Free Cash Flow
Strong Free Cash Flow 200.0 WC/Sales 13.4% 180.0 (27.7) 7.3 (13.9) 160.0 (14.8) 140.0 (30.9) 120.0 189.3 €’M 100.0 80.0 109.3 60.0 40.0 20.0 0.0 EBITDA Working Provisions, Interest Tax Net Capex Free cash flow Capital Pension, Non- Payable cash 10
Slide 11: Movement in Net Debt
Movement in Net Debt 140.0 (2.2) 120.0 25.3 100.0 80.0 125.5 106.7 €’M 60.0 (109.3) 105.0 40.0 20.0 0.0 Net Debt Dec 13 Free Cash Flow Acquisitions Dividend Shares issued/fx Net Debt Dec 14 etc. -20.0 11
Slide 12: Growing ROCE
Growing ROCE 16.0 14.0 13.4% 12.3% 12.0 10.7% 10.0% 10.0 8.6% 8.0 6.0 4.0 2.0 0.0 2010 2011 2012 2013 2014 12
Slide 13: Financing and Interest
Financing and Interest Decrease in cash interest 2014 2013 % €’m €’m Bank and Loan Notes 13.1 14.0 (6.4%) Non Cash Derivatives 0.8 (0.7) Non Cash Pension 0.1 0.3 14.0 13.6 2.9% Significant Headroom €’m Revolving Credit Facility (undrawn) 300 Bi-Laterals (undrawn) 190 Cash 186 676 In addition, a
Slide 14: Financing and Interest: 2015 Interest Forecast
Financing and Interest Positive refinancing: €3.8m annualised interest saving from refinancing activity during the year Excluding acquisition related activity, cash interest will fall by €2m in 2015 2015 Interest Forecast 14 12 €0.2m €3.7m Millions 10 €1.9m 8 €13.1m €11.1m 6 4 2 - 2014 RCF Ame
Slide 15: Sales by Geography
Sales by Geography FY 2013 FY 2014 10% 4% 10% 4% 13% 15% 34% 36% 39% 35% Republic of Ireland Britain & Northern Ireland Mainland Europe Americas €’m FY 14 FY 13 Constant Currency YoY % Rest of World Change Change Britain & Northern Ireland 687.4 595.2 +10% +15% Mainland Europe 668.0 693.2 -3% -4% Am
Slide 16: Insulated Panels
Insulated Panels Positive UK performance overall Benelux subdued but stable with FY 14 FY 13 France somewhat encouraging Sales (€m) 1,111.4 1,036.0 due to growing conversion % of Group Sales 59% 58% Strong performance in Australasia and the Gulf region with significant growth in sales Analysis
Slide 17: Insulated Panels (Cont.)
Insulated Panels (Cont.) Strong performance in North America, with a double digit increase in sales Benchmark® architectural specifications well up on prior year A year of progress for Kingspan Energy (integrated roof solar solution) with pipeline and specification building Newport, Vermont, U
Slide 18: Insulation Boards
Insulation Boards Good UK performance overall Kooltherm® sales robust with a FY 14 FY 13 positive impact on margin Sales (€m) 477.1 441.9 Improvement in Benelux and % of Group Sales 25% 25% German sales driven by rising adoption of Kooltherm® Analysis of YoY % Change New facility to serve ea
Slide 19: Access Floors
Access Floors Solid year overall with an improvement in sales (H2 +7%) FY 14 FY 13 following a subdued H1 Sales (€m) 155.1 154.2 UK office construction improved % of Group Sales 8% 9% markedly during 2014 Analysis of YoY % Change US new office construction still at Currency Volume Price & Mix
Slide 20: Environmental
Environmental Stable performance overall FY 14 FY 13 Improvement in Water solutions Sales (€m) 147.6 144.7 sales in UK % of Group Sales 8% 8% Encouraging recent trends in fuel storage product set Analysis of YoY % Change Emerging environmental service Currency Volume, Price & Mix Total +4% -
Slide 21: Outlook
Outlook Positive momentum from second half of 2014 has continued into early 2015 The UK and US in particular are demonstrating robust growth Mainland Europe remains mixed and can be anticipated to remain so in the near term. The Netherlands is gradually improving, Germany is stable, and Centra
Slide 22: 2015 Big Rocks
2015 Big Rocks Continued momentum in organic profit growth ROCE c. 14%* ROS c. 8.5%* *Pre the integration of Execute and integrate new Joris Ide & Vicwest businesses: • Joris Ide (Mainland Europe) • Vicwest (North America) Develop next • Pactiv (North America) generation • PAL (UAE) Kooltherm • Dri-
Slide 23: Additional Information
ADDITIONAL INFORMATION New Mexico, US Insulated Panels 23
Slide 24: Our Evolution – Financial
Our Evolution – Financial CAGR = 17% 24
Slide 25: Innovation Pipeline
Innovation Pipeline Kingspan. Kingspan Energy Kreate® (Benchmark®) Next Generation Kooltherm® | T T T T T 2010 2011 2012 2013 2014 2015 2016 2017 25
Slide 26: Kingspan Insulates Better
Kingspan Insulates Better 26
Slide 27: Kingspan v Construction Macro
Kingspan v Construction Macro 27
Slide 28: Driving Penetration Growth
Driving Penetration Growth Aim to change Building Practices / Material Choices 28
Slide 29: Dublin Road, Kingscourt, Co. Cavan, Ireland
Dublin Road, Kingscourt, Co. Cavan, Ireland Telephone: +353 42 969 8000 Fax: +353 42 966 7501 Email: admin@kingspan. com www. Kingspan. com Kingspan