Kingspan Group Plc · EURONEXT:KRX

Kingspan — FY2015 Earnings Presentation

32 slides from Kingspan's earnings presentation, Feb 22, 2016

  1. Slide 1: Kingspan 2015 Full Year Results

    Kingspan 2015 Full Year Results 22nd February 2016

  2. 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 an

  3. 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 3

  4. Slide 4: What We Deliver

    What We Deliver 0 QO Excellence Architectural Fully Integrated in Energy Inspiration Envelope Solutions 6 © Building Comfort Science & Savings

  5. Slide 5: 2015 In a Nutshell

    2015 In a Nutshell 2.77 Billion 256 Million 5

  6. Slide 6: 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

  7. Slide 7: 5 Year Financial Performance

    5 Year Financial Performance Revenue (€’m) (CAGR 15.7%) 2,774.3 1,776.8 1,891.2 1,546.9 1,628.7 2011 2012 2013 2014 2015 Trading Profit (€’m) (CAGR 27.9%) 255.9 148.5 122.8 95.7 107.7 2011 2012 2013 2014 2015 7

  8. Slide 8: 2015 In Summary

    2015 In Summary • Strong delivery overall with encouraging organic growth Revenue complemented by significant development activity. up 47% • Insulated Panel revenue growth of 60% to €1,777m, to €2.77bn reflecting solid organic growth in key markets, combined with the acquired sales of Joris Ide and

  9. Slide 9: Financial Highlights

    Financial Highlights 2015 2014 Change cc* Revenue (€m) 2,774.3 1,891.2 +47% +38% Trading Profit (€m) 255.9 148.5 +72% +58% EBITDA (€m) 316.4 189.3 +67% +54% Earnings per share (cent) 106.7 €x 62.6 +70% Total Dividend (cent) 25.0 16.25 +54% Free Cashflow (€m) 267.0 109.3 +144% Net Debt (€m) 328.0 125

  10. Slide 10: Trading Profit & Margin Progression

    Trading Profit & Margin Progression Trading Profit Margin % 275.0 250.0 225.0 FY 13 FY 14 FY 15 200.0 Insulated Panels 7.3% 8.0% 9.3% 175.0 Insulation Boards 6.7% 8.4% 9.2% 150.0 Environmental 1.0% 0.8% 5.1% €’m 125.0 255.9 Access Floors 10.5% 11.7% 12.1% 100.0 Group 6.9% 7.9% 9.2% 75.0 148.5 122.8

  11. Slide 11: Group Sales & Profit Bridge

    Group Sales & Profit Bridge Sales 165.1 63.6 654.4 2,774.3 1,891.2 Revenue 2014 Acquisitions FX Underlying Revenue 2015 Trading Profit 21.8 33.7 51.9 255.9 148.5 2014 Acquisitions FX Underlying 2015 11

  12. Slide 12: Strong Free Cash Flow

    Strong Free Cash Flow 400.0 WC/Sales 10.9% 7.1 (14.5) 350.0 56.2 (28.7) 300.0 (69.5) 250.0 €’M 200.0 316.4 267.0 150.0 100.0 50.0 0.0 EBITDA Working Provisions Interest Tax Net Capex Free cash flow Capital/Other 12

  13. Slide 13: Working Capital %

    Working Capital % 14.0% 12.0% Average 12.1% 10.0% 8.0% 13.4% 6.0% 12.2% 12.3% 12.0% 10.9% 4.0% 2.0% 0.0% 2011 2012 2013 2014 2015 13

  14. Slide 14: Movement in Net Debt

    Movement in Net Debt 400.0 1.0 300.0 31.8 328.0 200.0 438.7 €’M 100.0 125.5 267.0 0.0 -100.0 -200.0 Net Debt Dec 14 Free Cash Flow Acquisitions Dividend Shares issued/fx Net Debt Dec 15 etc. 14

  15. Slide 15: Growing ROCE

    Growing ROCE 16.0% 14.0% 12.0% 10.0% 8.0% 15.2% 13.4% 6.0% 12.3% 10.7% 10.0% 4.0% 2.0% 0.0% 2011 2012 2013 2014 2015 15

  16. Slide 16: Significant reduction in % interest margin

    Significant reduction in % interest margin 16.0 14.0 2.0 (3.8) 0.8 12.0 1.8 10.0 14.8 €’M 8.0 14.0 6.0 4.0 2.0 0.0 Interest 2014 Maturing Notes Bank Debt FX New Notes Interest 2015 16

  17. Slide 17: Sales by Geography

    Sales by Geography 2014 2015 10% 4% 8% 3% 15% 20% 30% 36% 35% 39% €’m FY 15 FY 14 Constant Currency YoY % Change Change Britain & Northern Ireland 816.9 687.4 +8% +19% Mainland Europe 1,079.3 668.0 +62% +62% Americas 566.7 274.1 +80% +107% Republic of Ireland 92.4 81.1 +14% +14% Rest of World 219.0

  18. Slide 18: Insulated Panels

    Insulated Panels  Strong sales in 2015 reflecting solid organic growth combined with acquired sales of Joris Ide FY 15 FY 14 and Vicwest Inc. Sales (€m) 1,776.6 1,111.4 % of Group Sales 64% 59%  UK volumes strongest for a number of years, good growth across most segments Analysis of YoY % Change 

  19. Slide 19: Insulated Panels (Cont.)

    Insulated Panels (Cont.)  Australia challenging, albeit focus on penetration growth making steady progress  Strong organic performance in North America, up 13% on prior year  Focus on further penetration growth in North America and broadening geographic presence into Mexico and South America  Ac

  20. Slide 20: Insulation Boards

    Insulation Boards  UK business made strong gains, particularly H1 FY 15 FY 14  Kooltherm® sales robust with a positive impact on margin Sales (€m) 662.8 477.1 % of Group Sales 24% 25%  Notable growth in the Netherlands. Belgium and France weaker Analysis of YoY % Change  North America business d

  21. Slide 21: Access Floors

    Access Floors  Solid sales performance overall FY 15 FY 14  US office market remains Sales (€m) 175.9 155.1 subdued % of Group Sales 6% 8%  Focus on growing US data centre Analysis of YoY % Change sales Currency Volume Price & Mix Total  New data centre products +14% -4% +3% +13% gaining tractio

  22. Slide 22: Environmental

    Environmental  Positive sales performance FY 15 FY 14 overall Sales (€m) 159.0 147.6  Fuel storage solutions key % of Group Sales 6% 8% driver of growth Analysis of YoY % Change  Environmental service and Currency Volume, Price & Mix Total telemetry activity progressing +8% - +8% well  Hot water

  23. Slide 23: Outlook

    Outlook  Strong start to the year, untypically mild early season  Exchange rates drifting from 2015 average levels  Healthy order book overall Centennial College, Toronto, Canada 23 Dri Design

  24. Slide 24: Additional Information

    ADDITIONAL INFORMATION Geelong Library & Heritage Centre, Australia 24 Insulation

  25. Slide 25: 2015 Snapshot

    2015 Snapshot Z SALES €2.8bn 64-, INSULATED PANELS 6% ENVIRONMENTAL 6. FLOORS 24% INSULATION BOARDS PRODUCT 44m Million INSULATION BOARDS VOLUME 41m Million INSULATED PANELS EBITDA €316m 3% 39», 8 % —\ MAINLAND nest on y a EUROPE WORLD 20 %\ | GEOGRAPHY AMERICAS 30, at” UNITED KINGDOM 58 CONTINUOUS

  26. Slide 26: Our Evolution - Financial

    Our Evolution - Financial CAGR = 17.8% 26

  27. Slide 27: Global Organic Expansion

    Global Organic Expansion Kankaanpaa, Finland QuadCore Panel Line 2016 m Leuze, Belgium Door Parél Line 2019) ataeeee oe ay “> PIR Roofpanel Line 2016 - Perpignan, France , a ae PIR Roofpanel Line 2017 Modesto, USA QuadCore Panel Line 2017 ~ he, Winchester, USA -_—™ Monterrey, Mexico Dubai, UAE QuadC

  28. Slide 28: Kingspan Insulates Better

    Kingspan Insulates Better 28

  29. Slide 29: Kingspan v Construction Macro

    Kingspan v Construction Macro 29

  30. Slide 30: Driving Penetration Growth

    Driving Penetration Growth Aim to change Building Practices / Material Choices 30

  31. Slide 31: Our Net Zero Energy Path

    Our Net Zero Energy Path Total Energy Use a GWh BB Total Renewable Energy GWh nz % 2016P 31

  32. Slide 32: Slide 32

Kingspan Group — FY2015 Earnings Presentation on 6ix