Kingspan Group Plc · EURONEXT:KRX
Kingspan — H1 2024 Earnings Presentation
27 slides from Kingspan's earnings presentation, August 2024
Slide 1: Half Year Results
Half Year Results August 2024
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements including, without limitation, the Group’s financial position, business strategy, plans and objectives of management for future operations. Such forward-looking information involves risks and uncertai
Slide 3: H1 2024 in Summary
H1 2024 in Summary Revenue €4.2bn +2% Insulated Panels sales decrease of 4% with positive volumes overall offset by lower year on year pricing reflecting raw material pass through. QuadCore® continues to advance comprising 32% of insulated panel order intake value in the period. Trading Profit
Slide 4: Our Mission
Our Mission To accelerate a net zero emissions future Ultra Energy-Efficient 164 million tonnes of CO2e will built environment with the wellbeing of be saved over the life of our people and planet at its heart. insulation systems sold in 2023 Circular Materials In 2023 alone we upcycled over 850 mil
Slide 5: Sustainability targets and progress
UNDERLYING PROGRESS TOWARDS WHOLE BUSINESS 2 BUSINESS 1 TARGET TOPIC TARGET YEAR 2020 2024 TARGET 2020 20246 Net Zero Carbon Manufacturing (scope 1 & 2 GHG emissions3 - tCO2e) 2030 410k 4 102k 83% 870k 4,5 403k 5 50% reduction in product CO2e intensity Not forecasted at CARBON from primary supply pa
Slide 6: Sustainability achievements 2020-2023
300+ projects 337,000 + 740+ GWh 95 | 80+ GWh 800+ | 570+ tCO2e GHG renewable energy On-site renewable Electric forklifts emissions reduction consumption energy systems + EV chargers generation 6,200+ 49 | 70m+ litres 3 billion + 140+ Tonnes landfill Rainwater harvesting Recycled PP Communities avoi
Slide 7: Megatrends That Drive Us
Megatrends That Drive Us Politics and Regulation Averting a climate emergency Paris Agreement goal to limit the temperature increase above pre-industrial levels to 1.5ºC Market and Customers Sustainability and Resilience Society and Workforce Future proofing of asset values Resource Scarcity Health/
Slide 8: The Lower Embodied Carbon Envelope
The Lower Embodied Carbon Envelope 8 * 100mm panel ** 5,000m2 roof *** across lifecycle modules A - C
Slide 9: The Full Spectrum
The Full Spectrum Leading Thermal Non-critical Thermal Performance/Space Saving Applications - Vacuum Insulated Panels All materials Return on Investment - Kooltherm® including: - QuadCore® - Wood wool - Optim-R® - Hemp wool Space - IPN Walkability Fire Compression Load Bearing - XPS Acoustics - Pol
Slide 10: Global Expansion
Belgium Pipe Insulation Line 2024✓ Global Expansion Data + Flooring Plant 2024✓ PowerPanel® Enablement 2026 Germany Circularity Centre (Product Take-Back) Insulated Panel Plant 2025/2026 2024✓ UK Czech Republic Poland Ireland Mineral Fibre Panel Line PowerPanel® Enablement Wood Fibre Insulation Faci
Slide 11: Progress So Far
Progress So Far 9.0 8.5 8.0 7.5 CAGR 16.8% 7.0 6.5 6.0 5.5 Revenue (€bn) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 11
Slide 12: In a Nutshell
In a Nutshell 6% Roofing 55% 22% 11% + Waterproofing Products Insulated Panels Insulation Light, Air + Water 6% Data + Flooring Revenue 85% 15% €4.2bn Drivers Energy Efficiency Other Geographic 45% 26% 22% 7% ROW Applications - Retail Regions Western and Southern Europe Central and Northern Americas
Slide 13: Financial Highlights
Financial Highlights H1 2024 H1 2023 YoY % Change cc change* Revenue (€m) 4,167.0 4,083.9 +2% +2% Trading Profit (€m) 421.8 435.5 -3% -3% Earnings per share (cent) 165.9 175.2 -5% Interim Dividend (cent) 26.3 26.3 - Free Cashflow (€m) 103.6 356.9 -71% Net Debt (€m) 1,523.7 1,372.7 +11% Trading Margi
Slide 14: Trading Profit & Margin
Trading Profit & Margin TRADING PROFIT (€m) Trading Margin FY 2023 H1 2023 H1 2024 Insulated Panels 12.2% 12.2% 11.1% Insulation 9.5% 9.5% 8.6% Data + Flooring 13.5% 14.7% 15.0% 435.5 434.2 Roofing + Waterproofing 5.7% 4.5% 8.8% 421.8 Light, Air + Water 8.1% 6.4% 6.7% 328.9 Group 10.8% 10.7% 10.1% 2
Slide 15: Sales and Profit Bridge
Sales and Profit Bridge REVENUE (€m) TRADING PROFIT (€m) 293.5 (212.6) 26.4 (40.7) 2.2 0.6 4,083.9 4,167.0 435.5 421.8 Revenue Currency Acquisitions Underlying Revenue Trading Profit Currency Acquisitions Underlying Trading Profit H1 23 H1 24 H1 23 H1 24 15
Slide 16: Sales by Geography
Sales by Geography 7% YoY % cc 45% H1 24 H1 23 Change change* Western & Southern Europe 1,854.5 1,933.6 -4% -5% H1 2024 Central & Northern Europe 1,095.0 979.2 +12% +11% 22% Americas 910.1 916.5 -1% -1% Rest of World 307.4 254.6 +21% +28% Total 4,167.0 4,083.9 2% 2% 26% * Constant currency change 6%
Slide 17: Free Cash Flow (€m)
Free Cash Flow (€m) (115.7) (157.3) 536.3 (32.2) (15.6) (109.6) (13.1) (0.9) 11.7 103.6 EBITDA Working Net Capex Lease Net Finance Tax Provisions Pension Non-Cash Free Cash Capital Payments Costs Contributions Items Flow 17
Slide 18: Net Debt Reconciliation (€m)
Net Debt Reconciliation (€m) (11.4) 48.8 16.7 1.0 1.1 134.6 457.0 (103.6) 1,523.7 979.5 Net Debt Dec 23 Free Cash Flow Acquisitions Purchase of Dividend to Deferred Repurchase of Dividends Paid FX/Other Net Debt Jun 24 financial asset non-controlling consideration shares interests paid 18
Slide 19: Strong Balance Sheet
Strong Balance Sheet Net debt to EBITDA 1.50x as at 30 June 2024 Undrawn €800m green revolving credit facility with a committed term to May 2027 Total private placement loan notes of €1,558m Weighted average maturity of all outstanding private placement notes of 4.6 years Total available l
Slide 20: Consistent value accretive growth
Consistent value accretive growth FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 €8,341m €8,091m 16.4% CAGR €6,497m Revenue €3,668m €4,373m €4,659m €4,576m €2,774m €3,109m €1,891m €877m 21.7% CAGR €833m €755m Trading €497m €508m €445m Profit €256m €341m €378m €149m 329.5 352.3 21.2% CAGR 305.6 18
Slide 21: Insulated Panels
Insulated Panels H1 24 H1 23 • Performance broadly reflected the trends experienced across the wider business. Sales (€m) 2,300.1 2,386.7 % of Group Sales 55% 58% • Sales volume was ahead of prior year, although outpaced by growth in order intake volume which augurs well for the second Analysis of Y
Slide 22: Insulation
Insulation • This business has been a hive of activity as we put the building blocks in H1 24 H1 23 place for accelerated future growth, extending an unrivalled spectrum Sales (€m) 927.2 798.8 of thermal and acoustic solutions. % of Group Sales 22% 20% • We are now the world leader in natural insula
Slide 23: Data + Flooring
H1 24 H1 23 Data + Flooring Sales (€m) 226.0 189.2 % of Group Sales 6% 5% • Momentum is building strongly in this key Analysis of YoY % Change segment as our hot aisle containment Underlying Currency Acquisition Total solutions for the datacentre sector gain +8% - +11% +19% traction across the globe
Slide 24: Roofing + Waterproofing
H1 24 H1 23 Roofing + Waterproofing Sales (€m) 257.1 238.6 • Encouraging first half for Roofing + Waterproofing. % of Group Sales 6% 6% Volume, revenue and trading margin all grew during the Analysis of YoY % Change period, and are likely to perform similarly through the remainder of the year. Under
Slide 25: Light, Air + Water
H1 24 H1 23 Light, Air + Water Sales (€m) 456.6 470.6 % of Group Sales 11% 11% • Solid outcome characterised by stable volume and an improvement in trading margin reflecting the trend of Analysis of YoY % Change recent years. Underlying Currency Acquisition Total -3% - - -3% • Environment has been a
Slide 26: Outlook
Outlook Despite end markets having been a grind, particularly in Europe, Insulated Panel order intake levels progressed well as we moved through the period, consistently ahead of prior year. Our innovation pipeline is exciting with market entry of an array of lower embodied carbon (LEC®) solutio
Slide 27: Kingspan contact details
Dublin Road Kingscourt, Co Cavan Ireland, A82 XY31 Tel: +353 42 969 8000 Email: admin@kingspan.com www.kingspan.com 27