Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — ROCKWOOL International — Q2 2013 Earnings Presentation

34 slides from Rockwool A/S Class A's earnings presentation, Aug 28, 2013

  1. Slide 1: 2013 Q2 results Copenhagen 28 August 2013

    2013 Q2 results - Copenhagen, 28 August 2013 2013 Q2 results Copenhagen 28 August 2013 CEO Eelco van Heel CFO Gilles Maria 1

  2. Slide 2: Forward-looking statement

    2013 Q2 results - Copenhagen, 28 August 2013 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 economi

  3. Slide 3: Highlights

    2013 Q2 results - Copenhagen, 28 August 2013 Highlights  Sales in first half 2013 stable compared to 2012 – 3% growth in Systems  Major regional variations with North America, Russia, India/ Middle East and Southeast Asia performing best  Input costs developed better than expected driven by lower

  4. Slide 4: Western Europe

    2013 Q2 results - Copenhagen, 28 August 2013 Western Europe (62% of H1 sales)  Sales decreased 4% in the first half. Germany and France doing relatively well  Some recovery in Q2 of sales lost due to the hard winter. Construction activity still subdued. Signs of stabilisation in the UK, Spain and

  5. Slide 5: Western Europe (continued)

    2013 Q2 results - Copenhagen, 28 August 2013 Western Europe (continued)  Renovation activities continue to drive the markets to the benefit of segments such as external facade insulation (ETICS)  Bolt-on ETICS acquisition in Germany concluded in July  Slight positive reversal of market trend stil

  6. Slide 6: Eastern Europe & Russia

    2013 Q2 results - Copenhagen, 28 August 2013 Eastern Europe & Russia (21% of H1 sales)  Sales increased by 5%  Sales prices under pressure due to strong competition  Continued strong performance in Russia due to new products and new Elabuga factory running flat out  Russian imports from neighbou

  7. Slide 7: North America, Asia and Rest of the World

    2013 Q2 results - Copenhagen, 28 August 2013 North America, Asia and Rest of the World (17% of H1 sales) North America  Continued strong market penetration in North America with profitable double-digit sales growth. The unique properties of ROCKWOOL stone wool are now catching on in this continent

  8. Slide 8: North America, Asia and Rest of the World

    2013 Q2 results - Copenhagen, 28 August 2013 Tianjin X North America, Asia and Rest of the World (17% of H1 sales) Asia Guangzhou Dahej  The development in the region varies considerably with strong performances in Southeast Asia and Middle Rayong East and lower than expected sales in China  Chang

  9. Slide 9: India and Gulf region insulation

    2013 Q2 results - Copenhagen, 28 August 2013  After a troublesome start, the Indian operation is progressing fast. Factory capacity increase under consideration  Key strategy of exporting into Gulf region successful in technical as well as roof insulation – e.g. Qatar International airport. Domest

  10. Slide 10: Systems segment

    2013 Q2 results - Copenhagen, 28 August 2013 Systems segment  Sales increased by 3%  ROCKFON ceilings and ROCKPANEL cladding boards continue to gain share in a difficult European market  New state-of-the-art production facilities for ROCKFON in Poland and ROCKPANEL in the Netherlands on track  A

  11. Slide 11: Acquisitions

    2013 Q2 results - Copenhagen, 28 August 2013 Acquisitions  The Rock the Globe corporate strategy defined the need to expand deeper into the supply chain. Acquisitions are part of this strategy:  Acquisitions to support geographical expansion: The CSR acquisition in Asia as well as the Russian Troi

  12. Slide 12: Acquisition of BASF Wall Systems

    2013 Q2 results - Copenhagen, 28 August 2013 Acquisition of BASF Wall Systems  One of the leading system holders in Europe’s biggest ETICS market Germany and with a good platform in the UK  Turnover of EUR 68 million, 190 employees, 1 production plant and well-established brands  Acquired technol

  13. Slide 13: Acquisition of CMC

    2013 Q2 results - Copenhagen, 28 August 2013 Acquisition of CMC  Global provider of suspended ceiling related products and services - including grid systems and metal ceiling panels  Solid network of sales and distribution channels throughout North America, Europe and Asia supported by production

  14. Slide 14: Financial

    2013 Q2 results - Copenhagen, 28 August 2013 Financial 14

  15. Slide 15: Net sales H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Net sales H1 2013 6,852 6,831 7,000 6,577 6,301 6,500 6,000 5,203 5,445 5,500 5,000 DKK million 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -21% 5% 16% 9% 0% 0 -500 2008 2009 2010 2011 2012 2013 Net sales Changes 15

  16. Slide 16: Geographical split of external net sales

    2013 Q2 results - Copenhagen, 28 August 2013 Geographical split of external net sales YTD DKK million Q2 2013 Growth Q2 2013 Growth Western Europe 2,235 0.2% 4,214 -4.1% Eastern Europe incl. Russia 877 6.0% 1,459 4.8% North America, Asia and others 574 4.9% 1,158 8.5% Total 3,686 2.3% 6,831 -0.3% YT

  17. Slide 17: EBITDA H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 EBITDA H1 2013 1,800 1,600 1,400 1,159 DKK million 1,200 951 978 1,000 864 785 800 610 600 400 200 -48% 44% -10% 22% 3% 0 2008 2009 2010 2011 2012 2013 -200 EBITDA Changes 17

  18. Slide 18: EBITDA H1 2013 per business segment

    2013 Q2 results - Copenhagen, 28 August 2013 EBITDA H1 2013 per business segment 1,600 1,400 1,200 DKK million 1,025 1,000 742 775 800 672 545 613 600 400 139 149 132 145 200 106 53 53 77 58 28 12 23 0 2008 2009 2010 2011 2012 2013 Insulation Segment Systems Segment Elim. & Holding companies 18

  19. Slide 19: EBITDA ratio H1 2013 per business segment

    2013 Q2 results - Copenhagen, 28 August 2013 EBITDA ratio H1 2013 per business segment 20% 18% 17% 16% 14% 13% 13% 14% 11% 12% 11% 12% 12% 12% 10% 11% 10% 8% 6% 6% 4% 2% 0% 2008 2009 2010 2011 2012 2013 Insulation Segment Systems Segment 19

  20. Slide 20: EBIT H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 EBIT H1 2013 1,400 1,200 1,000 DKK million 773 800 600 430 440 377 400 294 177 113% 200 -77% -22% 46% 2% 0 2008 2009 2010 2011 2012 2013 -200 -400 EBIT Changes 20

  21. Slide 21: EBIT H1 2013 per business segment

    2013 Q2 results - Copenhagen, 28 August 2013 EBIT H1 2013 per business segment 1,400 1,200 1,000 DKK million 800 662 600 400 262 279 224 140 138 159 148 130 145 200 104 7 52 38 16 -15 15 -13 0 2008 2009 2010 2011 2012 2013 -200 Insulation Segment Systems Segment Elim. & Holding companies 21

  22. Slide 22: Financial items H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Financial items H1 2013 10 3 0 DKK million -10 -20 -18 -24 -30 -30 -31 -33 -40 2008 2009 2010 2011 2012 2013 22

  23. Slide 23: Profit for the period H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Profit for the period H1 2013 1,000 900 800 DKK million 700 573 600 500 400 280 293 300 229 183 200 103 100 0 2008 2009 2010 2011 2012 2013 23

  24. Slide 24: Change in working capital H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Change in working capital H1 2013 200 159 100 0 DKK million -3 -100 -200 -300 -345 -400 -361 -413 -443 -500 2008 2009 2010 2011 2012 2013 24

  25. Slide 25: Stock end of H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Stock end of H1 2013 1,600 1,400 1,293 1,283 1,308 1,175 1,200 1,106 1,108 DKK million 1,000 631 854 683 645 800 626 671 584 600 455 400 677 610 657 530 435 399 524 200 0 2008 2009 2010 2011 2012 2012 YE 2013 Finished goods Raw material and consumables 25

  26. Slide 26: Debtors end of H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Debtors end of H1 2013 2,000 1,838 1,742 1,770 1,800 1,662 1,600 1,466 1,456 DKK million 1,400 1,200 1,000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 26

  27. Slide 27: Cash flow from H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Cash flow from H1 2013 1,000 800 669 618 600 DKK million 352 356 400 284 281 200 0 -73 -200 -137 -173 -256 -236 -400 -600 -800 -729 2008 2009 2010 2011 2012 2013 Cash flow from operating activities Free cash flow 27

  28. Slide 28: Investments and acquisitions H1 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Investments and acquisitions H1 2013 1,400 1,400 1,200 1,000 DKK million 932 932 767 800 31 31 545 592 600 440 461 440 100 425 400 2 332 468 253 294 208 200 296 121 215 260 151 87 0 2008 2009 2010 2011 2012 2013 Maintenance CAPEX Capacity Program Acquisit

  29. Slide 29: Energy prices

    2013 Q2 results - Copenhagen, 28 August 2013 Energy prices 29

  30. Slide 30: Expectations

    2013 Q2 results - Copenhagen, 28 August 2013 Expectations 30

  31. Slide 31: Expectations for 2013

    2013 Q2 results - Copenhagen, 28 August 2013 Expectations for 2013  The Group confirms its expectations for 2013 net sales at current exchange rates to be slightly above the level of 2012  The Group now expects a net profit for the year in the range DKK 700-750 million  Capital expenditure exclud

  32. Slide 32: Long term sales development 1984-2013e

    2013 Q2 results - Copenhagen, 28 August 2013 Long term sales development 1984-2013e 16,000 14,000 12,000 DKK million 10,000 8,000 6,000 4,000 2,000 0 32

  33. Slide 33: Investments and acquisitions full year

    2013 Q2 results - Copenhagen, 28 August 2013 Investments and acquisitions full year 2,658 2,700 2,400 2,200 2,100 DKK million 1,689 700 1,800 1,689 1,430 1,500 1,203 1,212 1,200 31 817 101 982 800 900 634 617 473 969 600 310 494 509 700 300 538 303 0 2008 2009 2010 2011 2012 2013 Maintenance CAPEX C

  34. Slide 34: Questions ?

    2013 Q2 results - Copenhagen, 28 August 2013 Questions ? 34

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