Kingspan Group Plc · EURONEXT:KRX

Kingspan — FY2006 Earnings Presentation

31 slides from Kingspan's earnings presentation, 2007

  1. Slide 1: Full Year Results 2007

    Full YearResults FullYear 2006 Results2007 1

  2. Slide 2: Disclaimer: Forward Looking Statements

    Disclaimer 2006 Results2007 Forward Looking Statements YearResults This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking FullYear information involves risks and unce

  3. Slide 3: 2007 Highlights

    2007 Highlights  Turnover up to €m.  Operating Profit up % to €m. 2006  Basic earnings per share up % to c. Results2007  Total investment of €m comprising capex of €m to support organic expansion, and €m of acquisitions. YearResults  Total net debt now stands at €m.  Strong growth in Panels, B

  4. Slide 4: 2007 Highlights

    2007 Highlights 2006 2007 % change 2006 Results2007 €’mn €’mn YearResults Sales +% Operating profit +% FullYear Operating margin % -bp Profit before tax +% Full €’cent €’cent Earnings per share +% Dividend per share +% 4

  5. Slide 5: Profit & Loss

    Profit & Loss H1-2007 Pre- YonY Total YonY €'mn H1-2006 H1-2007 Acquisition Growth Acquired Total growth 2006 Results2007 Sales 675.9 908.4 897.6 33% 10.8 908.4 34% Costs of sales (458.5) (626.8) (618.1) (8.7) (626.8) 37% Gross profit 217.4 281.6 279.5 29% 2.1 281.6 30% YearResults Gross Margin 32.2

  6. Slide 6: Cashflow Statement

    Cashflow Statement €'mn H1-2006 H1-2007 Operating Profit 88.0 114.2 2006 Depreciation 18.9 19.5 Results2007 Amortisation 1.3 2.5 Pension Contributions (1.8) (1.5) Working Capital Increase (32.4) (63.5) YearResults Interest Paid (4.3) (5.5) Taxation Paid (7.7) (9.8) Others 3.1 9.4 Free Cash Flow 65.1

  7. Slide 7: Financial Highlights

    Financial Highlights H1-2006 FY-2006 H1-2007 Revenue Growth 17.0% 17.5% 34.4% 2006 EBITDA 108.1 236.0 136.2 Results2007 ROCE 24.5% 26.4% 26.3% YearResults Effective tax rate 18.5% 18.2% 17.1% Dividend cover - declared 6.7 4.7 6.6 Working capital % sales 12.8% 15.7% 14.8% FullYear Working capital day

  8. Slide 8: Capital Expenditure

    Capital Expenditure – €73.4mn 2006 Environmental & Access Floors €1.1mn Results2007 Renewables €7.7mn Insulated Panels €18.9mn YearResults Off-Site & Structural €8.0mn FullYear Full Insulation Board €37.7mn 8

  9. Slide 9: Sales by Geographic Market

    Sales by Geographic Market % change €'mn H1-2006 H1-2007 YonY Republic of Ireland 126 145 15% Britain/Northern Ireland 394 517 31% Western Europe 66 78 18% 2006 Central & Eastern Europe 46 85 85% Americas 36 66 83% Results2007 Other 8 17 112% Group Sales 676 908 34% 5% 1% 7% 19% YearResults 10% Full

  10. Slide 10: Sales Growth by Division

    Sales Growth by Division 7% 2% 16 % 9% 400 2006 9% Results2007 350 +11% YearResults 57% 300 +36% Republic of Ireland Brit ain / Nort hern Ireland West ern Europe 250 Cent ral & East ern Europe Americas Ot her Euro mn FullYear 200 +7% +35% Full 150 +18% +11% Acquisition 100 +4% Organic +21% H1 2006 5

  11. Slide 11: Operating Profit by Product

    Operating Profit by Product €mn H1-2006 H1-2007 18% Insulated Boards & Panels 58.3 78.1 H1-2006 Off-Site & Structural 12.6 14.2 16% H1-2007 16% 15% Environmental & Renewables 10.0 9.9 2006 Access Floors 7.1 12.0 88.0 114.2 Results2007 14% 13% 12% 11% YearResults 10% 10% 8% 8% 8% 7% FullYear 6% Full

  12. Slide 12: Year Growth

    5 Year Growth (€’mn) 1874.6 1461.2 2006 1243.4 Results2007 958.1 739.6 783.9 Revenue – 20.5% CAGR YearResults 2002 2003 2004 2005 2006 2007 e** 237.1 FullYear 194.0 Full 145.1 103.3 82.0 79.4 Operating Profit* 23.8% CAGR 2002 2003 2004 2005 2006 2007 e** ** Current Davy Forecast 12 *Operating Profit

  13. Slide 13: The Group at a Glance

    The Group at a Glance  Core activities centre around Insulation, structural & non-structural  Focused on achieving strong market 2006 positions in growth products/sectors Results2007 Insulated Panels  Emphasis on continuous product and process developments YearResults Insulation Off-Site FullYear

  14. Slide 14: Why Kingspan?

    Why Kingspan?  The leader in high performance insulation solutions throughout Europe  A track record of >20% earnings growth over last 10 years 2006 Results2007  Strong market shares in all regions: clear #1 position  At the leading edge of low carbon innovation for buildings YearResults  Direc

  15. Slide 15: Where Kingspan Operates

    Where Kingspan Operates YearResults FullYear Full 2006 Results2007  Manufacturing and distribution operations throughout Europe, North America, Australasia  Ninety-seven locations: 59 Manufacturing and 38 Sales Offices  Manufacturing: 17 Panels, 4 Insulation, 16 Off-Site & Structural, 4 Access Fl

  16. Slide 16: Energy Directives – The Backdrop

    Energy Directives – The Backdrop Energy Performance in Buildings Directive  Fully implemented by 2008  Aims for “reduction of 22% in the energy 2006 consumed by buildings between 2003 & 2010” Results2007  Energy End Use and Efficiency & Energy Services Directive YearResults 2008-2017 Compulsor

  17. Slide 17: Time Line to Zero Carbon - UK

    Time Line to Zero Carbon - UK UK 2006 Results2007 YearResults  Building Regulation APR2006/10 - All new buildings designed and built to reduce energy consumption  A revision of current regulations is planned for 2010 FullYear  May be accelerated due to recent “Code for Sustainable Homes” Full  S

  18. Slide 18: Effects of Regulations upon Kingspan

    Effects of Regulations upon Kingspan Energy Saving through > Kingspan Products 2006 More insulation Structural Insulation Results2007 • Insulated Panels Reduction of waste • Offsite & Structural YearResults Air tightness Non-Structural Insulation • Insulation Board Heat recovery FullYear Environment

  19. Slide 19: Benefits of Refurbishment

    Full YearResults FullYear 2006 Results2007 Benefits of Refurbishment 19

  20. Slide 20: Kingspan EnergiPanel

    Kingspan EnergiPanel YearResults FullYear 2006 Results2007 Provides > 20% of building’s Full energy needs 20

  21. Slide 21: The Zero Carbon Kingspan Lighthouse

    Full YearResults FullYear 2006 Results2007 The Zero Carbon Kingspan Lighthouse 21

  22. Slide 22: The year Roll Out

    The 5 year Roll Out UK IRL CEE/ME WE North America 2006 Panels Wall Panel -Czech -Ontario Results2007 Roof re-location -Turkey -U.S. Sites -Ukraine YearResults -India Boards Greenfield Phenolic line Poland PIR Phenolic line FullYear PIR Full Off-Site Greenfield site E&R Site Site Consolidation Conso

  23. Slide 23: Insulated Panels

    Insulated Panels HALF YEAR Analysis of YonY % change 2006 2007 Total Organic Acquisitions Sales (€mn) 248.5 365.2 +47% +44% +3% 2006 % of Group Sales 37% 40% Bradford Results2007  Ireland non-residential remains strong University Campus YearResults  UK strong • Insulated Metal Roof & Wall Conversi

  24. Slide 24: Insulated Panels: Central & Eastern Europe

    Insulated Panels Central & Eastern Europe FULL YEAR Analysis of YonY % change 2006 2007 Total Organic Acquisitions Sales (€mn) 45.6 83.4 +82% +82% +0% 2006 % of Group Sales 7% 9% Results2007 Note: The above figures include Germany and Turkey  Strong growth across entire region YearResults  Market

  25. Slide 25: Insulated Panels: North America

    Insulated Panels North America  Entry into Canadian market with two deals • Annualised sales of €40-45mn • No.1 panel producer in region 2006 • Performing as planned in H1 Results2007  Timing ideal – Sustainability and energy YearResults agenda now coming centre stage  Initial emphasis on cold st

  26. Slide 26: Insulation Boards

    Insulation Boards FULL YEAR Analysis of YonY % change 2006 2007 Total Organic Acquisitions Sales (€mn) 119.2 140.0 +18% +18% +0% 2006 % of Group Sales 17% 15% Results2007 Rigid Board penetration of UK & Ireland  Ireland robust 180 Insulation Markets 165  UK experienced good growth with 159 YearRes

  27. Slide 27: Off-Site & Structural

    Off-Site & Structural FULL YEAR 2006 2007 Analysis of YonY % change Total Organic Acquisitions Sales (€mn) 114.6 169.3 2006 % of Group Sales 17% 19% +48% +47% +1% Results2007  Structural Products • Strong in UK YearResults • Very strong in Ireland  UK Off-Site sales growth strong • Organic growth

  28. Slide 28: Environmental & Renewables

    Environmental & Renewables FULL YEAR Analysis of YonY % change 2006 2007 Total Organic Acquisitions Sales (€mn) 119.9 141.6 +18% +18% +0% 2006 % of Group Sales 18% 16% Results2007  Entry into high growth Solar Thermal market, complimented by acquisition of Thermomax, YearResults completed in Q3. 

  29. Slide 29: Access Floors

    Access Floors FULL YEAR Analysis of YonY % change 2006 2007 Total Organic Acquisitions Sales (€mn) 73.7 92.3 +25% +21% +4% 2006 % of Group Sales 11% 10% Results2007  Record operating performance in North America YearResults  Favourable market conditions result in +36% another year where profits ad

  30. Slide 30: Future

    Future  Continue to pursue proven strategy  Leading market positions 2006 Results2007  Geographic and product diversity  Opportunities to grow within existing markets YearResults  Commitment to R&D and product innovation FullYear Full Delivering:  Strong cash flow across businesses  Pattern o

  31. Slide 31: Full Year Results 2007

    Full YearResults FullYear 2006 Results2007 31

Kingspan Group — FY2006 Earnings Presentation on 6ix