Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — Q1 2009 Earnings Presentation

32 slides from Rockwool A/S Class A's earnings presentation, May 26, 2009

  1. Slide 1: Q1 presentation Nordea, Copenhagen

    Q1 presentation Nordea, Copenhagen 26 May 2009 CFO Gilles Maria 1 1

  2. 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

  3. Slide 3: Agenda

    Agenda ƒ 1. Financials ƒ 2. Market development ƒ 3. Adapting the company 3 3

  4. Slide 4: Financials

    Financials 4 4

  5. Slide 5: Net sales first quarter

    Net sales first quarter - decreased by 18% or 14% on equal exchange rates 3500 3255 3099 3000 2476 2539 2500 DKK mill. 2060 2000 1500 1000 31% 500 20% -5% -18% 0 -500 2005 2006 2007 2008 2009 Net sales Changes 5 5

  6. Slide 6: EBIT first quarter

    EBIT first quarter - affected by an increase in depreciation of DKK 53 mill. compared to Q1 2005 700 210% 187% 615 600 160% DKK mill. 500 400 108% 337 110% 300 214 200 60% 103 100 68 10% 0 -100 -45% -40% -80% -200 -300 -90% 2005 2006 2007 2008 2009 EBIT Changes 6 6

  7. Slide 7: EBITDA first quarter

    EBITDA first quarter 800 784 240% 700 190% 600 527 500 DKK mill. 140% 383 400 105% 274 300 257 90% 200 49% 40% 100 0 -10% -33% -48% -100 -200 2005 2006 2007 2008 2009 -60% EBIT Changes 7 7

  8. Slide 8: EBIT first quarter per business segment

    EBIT first quarter per business segment 600 561 550 500 450 400 DKK mill. 350 297 300 250 198 200 150 115 100 68 50 50 34 20 -1 -12 16 -1 -10 20 -20 0 -50 2005 2006 2007 2008 2009 Insulation Systems Division Elim. & Holding companies 8 8

  9. Slide 9: Financial items Q1 2009

    Financial items Q1 2009 10 6 5 DKK million 0 -5 -4 -10 -8 -15 -14 -20 -25 -23 2005 2006 2007 2008 2009 9 9

  10. Slide 10: Profit first quarter after minority interests

    Profit first quarter after minority interests 450 428 400 350 DKK mill. 300 250 242 200 143 150 100 54 50 38 0 2005 2006 2007 2008 2009 10 10

  11. Slide 11: Change in working capital first quarter

    Change in working capital first quarter 0 -50 -64 -100 -84 DKK mill. -150 -200 -250 -236 -245 -300 -350 -400 -380 2005 2006 2007 2008 2009 11 11

  12. Slide 12: Cash flow from Q1 2009

    Cash flow from Q1 2009 500 400 300 200 423 DKK million 100 143 79 77 0 -63 -47 -100 -215 -257 -273 -200 -472 -300 -400 -500 2005 2006 2007 2008 2009 Cash flow from operations Free cash flow 12 12

  13. Slide 13: Investments and acquisitions first quarter

    Investments and acquisitions first quarter 700 616 600 DKK million 500 400 400 350 344 300 210 249 200 152 100 216 101 0 2005 1 2006 2 2007 3 2008 4 2009 5 Maintenance CAPEX Capacity program 13 13

  14. Slide 14: Stock end of first quarter

    Stock end of first quarter 1600 1.433 1400 1.271 1200 DKK million 1.024 921 798 1000 845 824 800 438 413 600 490 400 635 586 508 200 447 355 0 2005 1 2006 2 2007 3 2008 4 2009 5 Finished goods Raw material and consumables 14 14

  15. Slide 15: Debtors end of first quarter

    Debtors end of first quarter 2000 1800 1709 1743 1600 1498 1400 1380 DKK mill. 1190 1200 1000 800 600 400 200 0 2005 2006 2007 2008 2009 15 15

  16. Slide 16: Energy prices have decreased strongly and gap between energy types reduced

    Energy prices have decreased strongly and gap between energy types is now reduced Indexed spot prices of oil, foundry coke, gas and electricity 2004-2009 (Q1, 2005 = 100) 350 300 250 200 150 100 50 0 Q 1 /0 5 Q 1 /0 6 Q 1 /0 7 Q 1 /0 8 Q 1 /0 9 Q1/05 Q1/06 Q1/07 Q1/08 Q1/09 16 16

  17. Slide 17: Expectations for 2009

    Expectations for 2009 ƒ Net sales – calculated with the April exchange rate levels – are now expected to decrease by 18% (or 14% based on comparable exchange rates). ƒ Net profit for the year of DKK 400 million. ƒ Capital expenditure is expected at DKK 900 million. 17 17

  18. Slide 18: Long term sales development 1984-2009e

    Long term sales development 1984-2009e 14000 12000 DKK million 10000 8000 6000 4000 2000 0 2009e 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009e 18 18

  19. Slide 19: Long term EBITDA ratio 1984-2009e

    Long term EBITDA ratio 1984-2009e 26% 24% 22% 20% Percentage 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009e 19 19

  20. Slide 20: Long term EBIT ratio 1984-2009e

    Long term EBIT ratio 1984-2009e 20% 18% 16% Percentage 14% 12% Goal 11% 10% 8% 6% 4% 2% 0% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009e 20 20

  21. Slide 21: Investments and acquisitions full year

    Investments and acquisitions full year 2700 2.642 2400 2100 DKK million 1800 1.689 1.621 1500 1200 944 1.004 1.168 900 900 258 704 600 530 944 953 300 704 746 453 370 0 1 2004 2 2005 3 2006 4 2007 5 2008 6 2009e Maintenance Capacity program 21 21

  22. Slide 22: Market development

    Market development 22 22

  23. Slide 23: European insulation market

    European insulation market ƒ The economical crisis´ impact on business and consumer confidence and construction activities continues to affect the insulation market negatively. March turned out more negatively than anticipated. ƒ The newbuild activity continues to decrease in both residential and no

  24. Slide 24: Construction region 1: The Anglo-Saxon downturn

    Construction region 1: The Anglo-Saxon downturn • The trading is at a very low level but we see increased effects from the public programs 24 24

  25. Slide 25: Construction region 2: Additional calamities

    Construction region 2: Additional calamities • The Baltics, Ukraine, Hungary construction activity has almost disappeared • Spanish construction activities are severely hit but our activities perform better than the market and are profitable 25 25

  26. Slide 26: Construction region 3: More resilient

    Construction region 3: More resilient • The West European main markets continue to resist well except Scandinavia • Sales price levels are holding up • The government programs are showing an effect in Germany and France but not in Scandinavia 26 26

  27. Slide 27: Construction region 4: At risk for a calamity?

    Construction region 4: At risk for a calamity? • No light at the end of the tunnel yet • Sales prices have gone down in most countries • Polish market is the best performing market in the region • Strong uncertainties for the next quarters in Russia despite reasonable Rockwool sales in Q1 27 27

  28. Slide 28: North American insulation market

    North American insulation market ƒ The Group develops positively despite the continued decline of the US construction market. ƒ A new Rockwool production line started up in March 2009. The running-in is progressing successfully and the Rockwool Group has created a strong platform to benefit from Oba

  29. Slide 29: Systems Division

    Systems Division ƒ The Rockfon Group continues to outperform the market but is of course increasingly affected by the tightening market. Summer renovation activities will be extremely interesting to follow. ƒ Grodan Group’s markets are also affected by the crisis but less than the other businesses.

  30. Slide 30: Adapting the company

    Adapting the company 30 30

  31. Slide 31: Sizing production and organisation for the future

    Sizing production and organisation for the future ƒ The work on placing high-performing production lines in UK, Canada and Poland is now almost finalised. This will improve our competitiveness in strategic areas and allow us to introduce new products & solutions. ƒ Decision to close low-performing a

  32. Slide 32: Questions

    Questions Q1 26 May CFO Gilles Maria 32 32

Rockwool — Q1 2009 Earnings Presentation on 6ix