Rockwool A/s Class A · OMXCOP:ROCK_A

Rockwool A/s Class A — Non-Deal Roadshow (September 2012)

50 slides from Rockwool A/s Class A's roadshow presentation, Sep 27, 2012

  1. Slide 1: Roadshow London 27/9 2012

    Roadshow - London 27 September 2012 Roadshow London 27/9 2012 CFO Gilles Maria and VP Thorkild Diness Jensen The ROCKWOOL Group

  2. Slide 2: Forward-looking statement

    Roadshow - London 27 September 2012 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 environ

  3. Slide 3: The ROCKWOOL Group

    Roadshow - London 27 September 2012 The ROCKWOOL Group

  4. Slide 4: The ROCKWOOL Group

    Roadshow - London 27 September 2012 The ROCKWOOL Group  World leader in stone wool solutions  The world’s second biggest insulation producer  Turnover 2011 DKK 13,748 million of which 82% insulation and 18% other stone wool products  Company founded in 1909. Insulation activities since 1937  He

  5. Slide 5: Sales distributed on business area

    Roadshow - London 27 September 2012 Sales distributed on business area Insulation segment 82% Systems 2011 segment 18% ROCKFON GRODAN ROCKPANEL LAPINUS FIBRES

  6. Slide 6: Sales distributed on countries

    Roadshow - London 27 September 2012 Sales distributed on countries Germany 15% Others 33% France 14% 2011 The Netherlands 8% Great Britain 5% Poland 6% Russia 11% North America 8%

  7. Slide 7: ROCKWOOL locations

    Roadshow - London 27 September 2012 ROCKWOOL locations Sales office, administration, etc. Factory

  8. Slide 8: Energy and climate as growth drivers

    Roadshow - London 27 September 2012 Energy and climate as growth drivers

  9. Slide 9: Sustainable housing key to solve the energy challenge

    Roadshow - London 27 September 2012 Sustainable housing key to solve the energy challenge  50% of world population live in urban areas. This will grow to 70% by 2030  Aircon will triple before 2030 (McKinsey/Vattenfall)  CO2 emissions from buildings will grow by 50+% by 2030. Mainly in North Amer

  10. Slide 10: Buildings are the biggest energy consumer and CO2 polluter

    Roadshow - London 27 September 2012 Buildings are the biggest energy consumer and CO2 polluter 33% 26% 41% of all energy in EU is of all energy in EU is of all energy in EU is used for transport used by industry used by buildings 2/3 of energy consumption in buildings is used for heating, cooling an

  11. Slide 11: The lowest hanging fruit

    Roadshow - London 27 September 2012 The lowest hanging fruit Insulation is the most profitable CO2 saving; examples from McKinsey study “saved energy is better than new sources to replace fossil energy”

  12. Slide 12: EU leads the way in tightening of new build codes

    Roadshow - London 27 September 2012 EU leads the way in tightening of new build codes End 2018: Passive house level for public buildings End 2020: Passive house level for all buildings Denmark Roof 360mm Roof 585mm +30-80% Wall 190mm Wall 345mm Germany Roof 195mm Roof 425mm +100-300% Wall 90mm Wall

  13. Slide 13: EU focus on energy renovation of existing buildings

    Roadshow - London 27 September 2012 EU focus on energy renovation of existing buildings  New EU energy efficiency directive an important stimulus to insulation markets stipulating e.g.:  Annual savings of 1.5% by energy consumers to be delivered by energy suppliers (as of 1 January 2014).  3% of

  14. Slide 14: Segments, product properties and production

    Roadshow - London 27 September 2012 Segments, product properties and production

  15. Slide 15: Main insulation areas

    Roadshow - London 27 September 2012 Main insulation areas Interior Sandwich panels Facade Technical insulation Flat roof Marine & Offshore

  16. Slide 16: Product properties and market segments

    Roadshow - London 27 September 2012 Product properties and market segments FLEXIBLE PRODUCTS RIGID PRODUCTS Main applications: Main applications: Residential, refurbishment Non-residential (flat roof, facade, and newbuild foundation, sandwich panels), technical insulation, OEM Glass wool Foam plasti

  17. Slide 17: The ROCKWOOL production is capital intensive

    Roadshow - London 27 September 2012 The ROCKWOOL production is capital intensive – a new state-of-the-art plant producing 100,000 tonnes/year costs

  18. Slide 18: Markets and sales

    Roadshow - London 27 September 2012 Markets and sales

  19. Slide 19: Geographical split of external net sales

    Roadshow - London 27 September 2012 Geographical split of external net sales YTD DKK million Q1 2012 Q2 2012 Q2 2012 Western Europe 2,215 2,287 4,502 Eastern Europe incl. Russia 565 827 1,392 North America, Asia and others 469 489 958 Total 3,249 3,603 6,852 YTD DKK million Q1 2011 Q2 2011 Q2 2011 W

  20. Slide 20: European insulation market 2011

    Roadshow - London 27 September 2012 European insulation market 2011 Plastic foam 40-45%  Recticel (PUR) Other 5%  Kingspan (PUR, EPS)  DOW (XPS)  BASF (XPS)  Thyssen (PUR) Market size EUR 6.5 bill Glass wool 25-30%  Saint Gobain Stone wool 25-30%  Knauf  Rockwool International  Uralita  Pa

  21. Slide 21: Russian insulation market 2011

    Roadshow - London 27 September 2012 Russian insulation market 2011 Plastic foam 29% Market size EUR 0.7 bill Glass wool 26% Stone wool 45%

  22. Slide 22: Western Europe

    Roadshow - London 27 September 2012 Western Europe  Sales increased by 3.5% primarily driven by strong renovation activities whereas newbuilt remains depressed.  Very different market developments with good trading conditions in France, Poland and Germany against difficult market circumstances in

  23. Slide 23: Eastern Europe & Russia

    Roadshow - London 27 September 2012 Eastern Europe & Russia  Sales increased by 16% compared to same period last year, varying largely from region to region.  Growth in Russia still substantial but market circumstances getting tougher. ELA 5 well ahead of learning curve.  Poland shows a solid sal

  24. Slide 24: North American insulation market 2011

    Roadshow - London 27 September 2012 North American insulation market 2011 Glass wool 45% Owens-Corning Saint Gobain Johns-Manville Knauf Stone wool 4% Rockwool International A/S Fibrex Market size Thermofiber EUR 4.1 bill. IIG Other 8% Plastic foam 43% Owens-Corning (EPS & XPS) Johns-Manville (EPS &

  25. Slide 25: China and Southeast Asia

    Roadshow - London 27 September 2012 China and Southeast Asia Insulation market is completely unconsolidated with hundreds of producers Other 8% Glass wool 12% Plastic foam 72% Market size € 2.5 bill. Stone wool 8%

  26. Slide 26: North America and Asia

    Roadshow - London 27 September 2012 North America and Asia  Sales increased by 28% and reached EUR 129 million.  Now represents 14% of total sales of the Group.  Solid demand in China for non-combustible insulation expected to be even stronger once new fire safety regulation formally comes into f

  27. Slide 27: First US factory

    Roadshow - London 27 September 2012 First US factory Grand Forks Milton  A high capacity line with more than 100,000 tons annual output. Will produce a full range of insulation products covering a.o. strategic growth New factory areas DIY and flat roof. near Memphis  To be commissioned in 2014. 

  28. Slide 28: DIY success

    Roadshow - London 27 September 2012 DIY success  The superior quality of ROCKWOOL insulation is especially appreciated in the DIY segment: The building owner is the decision-maker!  Products marketed on their full-performance advantages: Thermal, acoustic, fire, water repellence, fitting propertie

  29. Slide 29: Systems segment

    Roadshow - London 27 September 2012 Systems segment  Sales grew 7% compared to same period 2011. EBIT decreased 11% due to extraordinary effects, the underlying business development is positive.  Positive sales development especially driven by ROCKFON. Decision to increase ROCKFON capacity in Pola

  30. Slide 30: Financials

    Roadshow - London 27 September 2012 Financials

  31. Slide 31: Net sales H1 2012

    Roadshow - London 27 September 2012 Net sales H1 2012 6,698 6,852 7,000 6,577 6,301 6,500 5,445 6,000 5,203 5,500 5,000 DKK million 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 -2% -21% 5% 11% 9% 500 0 -500 2007 2008 2009 2010 2011 2012 Net sales Changes

  32. Slide 32: EBITDA H1 2012

    Roadshow - London 27 September 2012 EBITDA H1 2012 1,800 1,647 1,600 1,400 1,156 DKK million 1,200 944 1,000 860 778 800 598 600 400 200 -30% -48% 44% -10% 21% 0 2007 2008 2009 2010 2011 2012 -200 EBITDA Changes

  33. Slide 33: EBITDA H1 2012 per business segment

    Roadshow - London 27 September 2012 EBITDA H1 2012 per business segment 1,559 1,600 1,400 1,200 DKK million 1,023 1,000 799 800 668 532 605 600 400 139 149 132 200 106 60 28 28 53 53 12 23 13 0 2007 2008 2009 2010 2011 2012 Insulation Segment Systems Segment Elim. & Holding companies

  34. Slide 34: EBITDA ratio H1 2012 per business segment

    Roadshow - London 27 September 2012 EBITDA ratio H1 2012 per business segment 28% 26% 25% 24% 22% 20% 18% 17% 16% 14% 13% 13% 14% 12% 12% 11% 11% 10% 10% 10% 8% 7% 6% 6% 4% 2% 0% 2007 2008 2009 2010 2011 2012 Insulation Segment Systems Segment

  35. Slide 35: EBIT H1 2012

    Roadshow - London 27 September 2012 EBIT H1 2012 1,400 1,301 1,200 1,000 773 DKK million 800 600 430 377 400 294 177 113% 200 -41% -77% -22% 46% 0 -200 2007 2008 2009 2010 2011 2012 -400 EBIT Changes

  36. Slide 36: EBIT H1 2012 per business segment

    Roadshow - London 27 September 2012 EBIT H1 2012 per business segment 1,400 1,230 1,200 1,000 DKK million 800 662 600 400 298 224 140 138 159 148 131 200 104 59 52 -15 -13 12 7 15 1 0 2007 2008 2009 2010 2011 2012 -200 Insulation Segment Systems Segment Elim. & Holding companies

  37. Slide 37: Financial items H1 2012

    Roadshow - London 27 September 2012 Financial items H1 2012 10 3 0 0 DKK million -10 -20 -18 -24 -30 -30 -33 -40 2007 2008 2009 2010 2011 2012

  38. Slide 38: Profit H1 2012 after minority interests

    Roadshow - London 27 September 2012 Profit H1 2012 after minority interests 1,000 905 900 800 DKK million 700 600 538 500 400 281 300 206 191 200 90 100 0 2007 2008 2009 2010 2011 2012

  39. Slide 39: Change in working capital H1 2012

    Roadshow - London 27 September 2012 Change in working capital H1 2012 200 164 100 5 0 DKK million -100 -200 -300 -340 -363 -362 -400 -423 -500 2007 2008 2009 2010 2011 2012

  40. Slide 40: Stock end of H1 2012

    Roadshow - London 27 September 2012 Stock end of H1 2012 1,600 27 1,367 1,345 1,400 76 1,168 1,183 1,110 1,200 DKK million 926 710 1,000 733 735 623 800 689 527 600 400 610 657 524 435 421 200 399 0 2008 2009 2010 2011 2011YE 2012 Finished goods Raw material and consumables

  41. Slide 41: Debtors end of H1 2012

    Roadshow - London 27 September 2012 Debtors end of H1 2012 1,709 1,743 1,742 1,800 1,662 1,498 1,600 1,348 1,400 DKK million 1,200 1,000 800 600 400 200 0 2007 2008 2009 2010 2011 2012

  42. Slide 42: Cash flow from H1 2012

    Roadshow - London 27 September 2012 Cash flow from H1 2012 1,200 1,094 1,000 800 663 613 DKK million 600 279 283 336 400 200 4 53 0 -50 -200 -400 -334 -431 -600 -800 2007 2008 2009 2010 2011 2012 Cash flow from operating activities Changes

  43. Slide 43: Investments and acquisitions H1 2012

    Roadshow - London 27 September 2012 Investments and acquisitions H1 2012 1,392 1,400 1,200 1,000 DKK million 932 750 800 659 31 539 600 168 440 452 100 409 400 2 491 253 460 208 294 200 279 121 78 145 900 0 2007 2008 2009 2010 2011 2012 Maintenance CAPEX Capacity Program Acquisitions

  44. Slide 44: Energy prices

    Roadshow - London 27 September 2012 Energy prices DKK million

  45. Slide 45: Expectations for 2012

    Roadshow - London 27 September 2012 Expectations for 2012  The Group expects sales to increase by at least 5% for the full year.  Expected full year result after minority interests remains between DKK 650 and 700 million.  Capex excluding acquisitions is expected to be DKK 1200 million, a decreas

  46. Slide 46: Long term sales development 1984-2012e

    Roadshow - London 27 September 2012 Long term sales development 1984-2012e 16,000 14,000 12,000 DKK million 10,000 8,000 6,000 4,000 2,000 0

  47. Slide 47: Long term EBITDA ratio 1984-2012e

    Roadshow - London 27 September 2012 Long term EBITDA ratio 1984-2012e 25% 20% Percentage 15% 10% 5% 0%

  48. Slide 48: Long term EBIT ratio 1984-2012e

    Roadshow - London 27 September 2012 Long term EBIT ratio 1984-2012e 20% 15% Percentage Goal 11% 10% 5% 0%

  49. Slide 49: Investments and acquisitions full year

    Roadshow - London 27 September 2012 Investments and acquisitions full year 2,642 2,700 2,400 2,100 DKK million 1,689 1,800 1,620 1,412 1,500 1,170 1,200 1,200 1,200 101 2 31 817 900 424 617 1,125 634 953 600 310 774 300 495 482 505 285 0 2007 2008 2009 2010 2011 2012 Maintenance CAPEX Capacity Progr

  50. Slide 50: Thank you

    Roadshow - London 27 September 2012 Thank you

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