Kingspan Group Plc · EURONEXT:KRX
Kingspan — H1 2014 Earnings Presentation
23 slides from Kingspan's earnings presentation, Aug 26, 2014
Slide 1: Kingspan Interim Results
Kingspan Interim Results 26thAugust 2014
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could affect expected r
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: H1 2014 in a Nutshell
H1 2014 in a Nutshell Revenue & trading profit are actual. A number of the other columns are based on internal estimates, and are directional rather than precise. 4
Slide 5: Strategic Goals
Strategic Goals 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 E
Slide 6: 5 Year Financial Performance
5 Year Financial Performance Revenue (€’m) (CAGR 12.5%) 1,912.5 1,790.3 1,546.9 1,628.7 1,193.2 2010 2011 2012 2013 2014* Trading Profit (€’m) (CAGR 18.5%) 142.2 122.8 107.7 95.7 72.0 2010 2011 2012 2013 2014* * Analyst consensus 6
Slide 7: H1 2014 In Summary
H1 2014 In Summary Good performance overall with sales levelling off in Revenue quarter two following a strong, and unseasonal, quarter one. up 4% to €889m Insulated Panels sales up 9% and trading profit up 30%, reflecting continuing penetration gains, a positive business mix, and some improveme
Slide 8: H1 Financial Highlights
H1 Financial Highlights +4% Revenue €889.3m +4% like-for-like* +17% EBITDA €88.9m +17% like-for-like* +24% Trading Profit €69.2m +23% like-for-like* Trading Margin 7.8% +120bps Basic EPS 29.2c +27% ROCE 12.4% +160bps Interim dividend 6.25c €32.4m +14% * Like-for-like comparisons exclude the impact o
Slide 9: H1 Trading Profit & Margin Growth
H1 Trading Profit & Margin Growth Trading Profit Margin % 70.0 60.0 H1 13 FY 13 H1 14 50.0 Insulated 6.9% 7.3% 8.3% Panels 40.0 Insulation 6.1% 6.7% 8.0% Boards 69.2 €’m 30.0 Environmental 1.1% 1.0% 0.3% 52.7 55.9 Access Floors 10.3% 10.5% 10.8% 44.2 20.0 35.7 Group 6.6% 6.9% 7.8% 10.0 0.0 H1 10 H1
Slide 10: Strong Operating Cash Flow
Strong Operating Cash Flow €m H1 14 H1 13 % change Operating profit 67.0 53.9 +24% Depreciation & amortisation 21.9 21.8 +0% Working Capital decrease/(increase) (29.5) (40.2) +27% Operating cash flow 59.4 35.5 +67% Interest and taxation (13.6) (11.6) +17% Net capital expenditure (21.0) (18.2) +15% O
Slide 11: Strong Net Debt Performance
Strong Net Debt Performance €m H1 14 H1 13 Free cash flow 28.7 9.8 Acquisitions (net of disposal proceeds) (23.4) - Dividends paid/other (10.3) (10.8) Cashflow Movement (5.0) (1.0) Debt Translation (1.7) 1.1 Decrease/(increase) in net debt (6.7) 0.1 Net debt at start of period (106.7) (165.2) Net de
Slide 12: Growing ROCE
Growing ROCE 14.0 12.4% 12.0 10.8% 10.5% 10.0 9.1% 8.4% 8.0 6.0 4.0 2.0 0.0 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 12
Slide 13: Key Ratios
Key Ratios FY 12 H1 13 FY 13 H1 14 ROCE 10.7% 10.8% 12.3% 12.4% Gearing (Net Debt: 20.4% 20.1% 12.5% 12.3% Shareholders Funds) Net Debt/EBITDA 1.12 1.1 0.66 0.66 Interest Cover 10.0 10.3 12.0 12.6 Working Capital as 12.3% 12.8% 11.7% 12.7% % of Sales 13
Slide 14: Strong Balance Sheet
Strong Balance Sheet Net Debt €113.4m headroom c. €492m compared to committed facilities and cash balances Undrawn revolving credit facility of €300m Facility amended in March 2014 Margins materially lowered on drawn and undrawn basis Term extended by two years to March 2019 2005 Priva
Slide 15: Sales by Geography
Sales by Geography H1 2013 H1 2014 10% 4% 13% 10% 14% 4% 34% 35% 38% 38% Republic of Ireland Britain & Northern Ireland Mainland Europe €’m H1 14 H1 13 Constant Currency YoY % Americas Change Change Rest of World Britain & Northern Ireland 335.3 290.6 +12% +15% Mainland Europe 314.2 316.6 0% -1% Ame
Slide 16: Sales by Product Group
Sales by Product Group H1 2013 H1 2014 9% 8% 8% 8% 57% 26% 25% 59% Insulated Panels Insulation Boards Environmental €m H1 14 H1 13 Constant YoY % Currency Change Access Floors Insulated Panels 526.1 482.5 +10% +9% Insulation Boards 221.1 218.8 0% +1% Environmental 71.6 71.3 -2% 0% Access Floors 70.5
Slide 17: Insulated Panels
Insulated Panels Strong start to 2014 UK general building activity H1 14 H1 13 continued to recover with Sales (€m) 526.1 482.5 increased sales volumes % of Group Sales 59% 57% Benelux and France remain under some macro-economic pressure Analysis of YoY % Change Strong performance in Currenc
Slide 18: Insulated Panels (Cont.)
Insulated Panels (Cont.) Solid performance in North America, sales volumes achieve single digit increase Record high orderbook in North America points towards positive H2 Rooftop Solar Power H1 2014 Funding Sources Benchmark architectural specifications well up on prior year indicating improve
Slide 19: Insulation Boards
Insulation Boards UK grew strongly in H1, although abated in recent months H1 14 H1 13 Kooltherm® sales robust, Sales (€m) 221.1 218.8 benefitting margins % of Group Sales 25% 26% Improvement in Benelux sales driven by penetration growth and unusually mild weather in Q1 Analysis of YoY % Chang
Slide 20: Access Floors
Access Floors Overall sales decreased by 11% with contrasting performance H1 14 H1 13 across the territories Sales (€m) 70.5 78.9 UK office construction improved % of Group Sales 8% 9% markedly in H1 Analysis of YoY % Change US new office construction still at Currency Volume Price & Mix Total
Slide 21: Environmental
Environmental Stable H1 in UK, Ireland and H1 14 H1 13 Mainland Europe Sales (€m) 71.6 71.3 Improvement in Water % of Group Sales 8% 8% Solutions sales in UK Hot Water products down Analysis of YoY % Change slightly mainly due to Currency Volume, Price & Mix Total competitive environment +2% -
Slide 22: Outlook
Outlook Glacial economic recovery in general Easing of momentum in Q2 anticipated to continue in Western Europe Strong order intake in H1 in the UK, North America & Australia bodes well for H2 sales in those regions Continental Europe potentially weaker Kingspan remains well poised overall
Slide 23: Kingspan.
Kingspan. Kingspan Group plc Dublin Road, Kingscourt, Co. Cavan, Ireland Telephone: +353 42 969 8000 Fax: +353 42 966 7501 Email: admin@kingspan.ie www.kingspan.com