Rockwool A/S Class A · OMXCOP:ROCK_A
Rockwool A/S Class A — Q3 2010 Earnings Presentation
29 slides from Rockwool A/S Class A's earnings presentation, Nov 17, 2010
Slide 1: 2010 Q3 results
2010 Q3 results Copenhagen 17 November 2010 CFO 1 Gilles Maria 1
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: Key points
Key points Sales and profits adjusted upwards The insulation market continue to be driven by renovation activities In newbuild, there are small sign of pick-up in some markets reflected in a growing no. of building permits (e.g. France, Sweden) This is primarily a residential sector phenomen
Slide 4: Net sales acc. Q3
Net sales acc. Q3 Increased by 6% compared to 2009 or 4% corrected from working days Q3 increased by 8% to DKK 3,027 million 10500 10,297 10,081 326% 9750 9000 8,472 276% 8,224 8250 7,995 7500 DKK mill. 226% 6750 6000 176% 5250 4500 126% 3750 3000 76% 2250 1500 25% 26% 750 6% 0 -2% -21% -750 -24% 20
Slide 5: EBITDA acc. Q3
EBITDA acc. Q3 stands at 15.5% of Net Sales 2700 540% 2,537 2500 2300 440% 2100 1900 1,764 DKK mill. 1700 340% 1500 1,402 1,319 1300 240% 1100 1,010 900 700 140% 500 81% 300 31% 40% 100 -100 -43% -30% -300 -60% 2006 2007 2008 2009 2010 EBITDA Changes 5 5
Slide 6: EBIT acc. Q3
EBIT acc. Q3 - increased by 80% 2,025 2100 270% 1950 1800 1650 220% 1500 1350 170% 151% 1,176 1200 DKK mill. 1050 900 807 120% 750 80% 613 600 70% 450 340 300 150 20% 0 -150 -30% -300 -42% -71% -450 -600 -80% 2006 2007 2008 2009 2010 EBIT Changes 6 6
Slide 7: EBIT acc. Q3 per business segment
EBIT acc. Q3 per business segment 1,879 1900 1700 1500 DKK mill. 1300 1100 1,032 900 700 690 500 384 299 300 205 124 131 94 100 60 57 22 24 13 -53 -100 2006 2007 2008 2009 2010 Insulation Systems Division Elim. & Holding companies 7 7
Slide 8: Financial items Q3
Financial items Q3 20 11 10 6 DKK mill. 0 -10 -20 -24 -30 -34 -38 -40 2006 2007 2008 2009 2010 8 8
Slide 9: Profit Q3 after minority interests
Profit Q3 after minority interests 1600 1,414 1400 1200 DKK mill. 1000 802 800 600 521 400 346 200 170 0 2006 2007 2008 2009 2010 9 9
Slide 10: Change in working capital Q3
Change in working capital Q3 500 441 400 DKK mill. 300 200 144 105 100 0 -100 -107 -200 -221 -300 2006 2007 2008 2009 2010 10 10
Slide 11: Stock end of Q3
Stock end of Q3 1600 1360 1400 1200 1053 542 993 DKK mill. 954 1000 801 800 487 361 535 600 500 400 818 632 566 200 419 301 0 2007 1 2008 2 2009 3 2009 4 YE 2010 5 Finished goods Raw material and consumables 11 11
Slide 12: Debtors end of Q3
Debtors end of Q3 2000 1,803 1,773 1800 1600 1,509 1,466 1,433 DKK mill. 1400 1,299 1200 1000 800 600 400 200 0 2006 2007 2008 2009 2009 2010 YE 12 12
Slide 13: Cash flow from Q3
Cash flow from Q3 2500 2,114 2000 1500 1,195 1,196 1,225 DKK mill. 1,006 1000 866 512 500 231 107 0 -500 -817 -1000 2006 2007 2008 2009 2010 Cash flow from operations Free cash flow 13 13
Slide 14: Investments and acquisitions Q3
Investments and acquisitions Q3 2100 2,013 1800 DKK mill. 1500 1,287 1200 1,109 994 900 759 683 802 594 600 177 353 726 300 506 231 307 400 175 0 2006 2007 2008 2009 2010 Maintenance CAPEX Capacity program Acquisitions 14 14
Slide 15: Energy prices are increasing but coke remain higher
Energy prices are increasing but coke remain higher Indexed spotprices of oil, foundry coke, gas and electricity 2005-2010 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2005 2006 2007 2008 2009 2010 15 15
Slide 16: Cost reduction programme and factory efficiency
Cost reduction programme and factory efficiency (accumulated figures) 700 600 500 DKK mill. 400 300 200 100 0 2H 2008 1H 2009 2H 2009 1H 2010 YTD Q3 2010 Cost reduction programme Factory efficiency 16 16
Slide 17: Regional outlook
Regional outlook Western Europe: Euro zone gradually recovering from financial crisis with Germany, France, Scandinavia as the better performing areas 17 17
Slide 18: Regional outlook
Regional outlook Central and Eastern Europe: Still worse than Western Europe with the exception of Poland 18 18
Slide 19: Regional outlook
Regional outlook Russia: Strong recovery has led to substantial import from neighbouring regions Factory 19 19
Slide 20: Regional outlook
Regional outlook North America: Despite general fragility of US housing, our operations are progressing well both in Canada and the US Factory 20 20
Slide 21: Regional outlook
Regional outlook Asia: Solid growth driven by strong Chinese economy. CSR acquisition expected to be closed in 2010 21 21
Slide 22: Acquisition of CSR's Asian stone wool insulation business
Acquisition of CSR’s Asian stone wool insulation business The closing concerning this AUD 128 million acquisition is expected to be finalised before end 2010 Gives the Group an excellent Asian production platform with 4 stone wool factories located in China, Malaysia and Thailand as well as 1 sa
Slide 23: Rockwool locations in Asia before and after CSR acquisition
Rockwool locations in Asia before and after CSR acquisition Representation office, administration, etc. Factory 23 23
Slide 24: Expectations for 2010
Expectations for 2010 Net sales at actual exchange rates up 5% compared to 2009 Profit after minority interests at DKK 470 million Investment level including acquisitions in the range of DKK 1,600 million 24 24
Slide 25: Long term sales development 1984-2010e
Long term sales development 1984-2010e 14000 12000 DKK million 10000 8000 6000 4000 2000 0 2010e 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 25 25
Slide 26: Long term EBITDA ratio 1984-2010e
Long term EBITDA ratio 1984-2010e 26% 24% 22% 20% Percentage 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010e 26 26
Slide 27: Long term EBIT ratio 1984-2010e
Long term EBIT ratio 1984-2010e 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 2008 2010e 27 27
Slide 28: Investments and acquisitions full year
Investments and acquisitions full year 2700 2,642 2400 DKK million 2100 1800 1,621 1,689 1,600 1500 1,170 1200 1,004 950 944 1,126 31 900 357 416 634 600 953 320 300 587 588 495 505 330 0 2005 2006 2007 2008 2009 2010e Maintenance Capacity program Acquisitions 28 28
Slide 29: Questions
Questions 29 29