SEB Nordic seminar Copenhagen 8 January 2013

Transcription

1 SEB Nordic seminar Copenhagen 8 January 2013 CFO Gilles Maria ROCKWOOL International A/S 1

2 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 exchange rate developments, the raw material situation, production and distributionrelated issues, breach of contract or unexpected termination of contract, price reductions due to market-driven price reductions, market acceptance of new products, launches of competitive products and other unforeseen factors. 2

3 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 Insulation activities since 1937 Head office in Copenhagen Approx. 10,000 employees 26 factories in 17 countries. Sales points in more than 30 countries 3

4 Sales distributed on regions North America, Asia and others 15% Eastern Europe including Russia 21% 2011 Western Europe 64% 4

5 The ROCKWOOL production is capital intensive a new state-of-the-art plant producing 100,000 tonnes/year costs approx. EUR 110 million 5

6 Sales distributed on business area Insulation segment 82% 2011 Systems segment 18% ROCKFON GRODAN ROCKPANEL LAPINUS FIBRES 6

7 Main insulation areas Interior Sandwich panels Facade Technical insulation Flat roof Marine & Offshore 7

8 Product properties and market segments FLEXIBLE PRODUCTS RIGID PRODUCTS Main applications: Residential, refurbishment and newbuild Main applications: Non-residential (flat roof, facade, foundation, sandwich panels), technical insulation, OEM 20 kg/m 3 Glass wool Key market: Flexible products Stone wool Key market: Flexible and Rigid products Foam plastics Key market: Rigid products 180 kg/m 3 8

9 Growth drivers: Energy Efficiency and geographical expansion 9

10 DKK million SEB Nordic seminar - Copenhagen - 8 January 2013 Financial goal of 8% annual sales growth 16,000 14,000 12,000 1,287 10,000 8, ,000 4, ,

11 Global demand for energy efficient buildings is high The challenge is mainly on existing buildings in Europe and North America and on new buildings in Asia 50% of world population live in urban areas. This will grow to 70% by 2030 Air-conditioning will triple before 2030 (McKinsey/Vattenfall) CO 2 emissions from buildings will grow by 50+% by Mainly in North America and East Asia (IPCC) Affordable and sustainable housing should be a main priority 11

12 EU leads the efforts but is off target on energy saving 12

13 Buildings are essential to achieve energy savings 32% of all energy in EU is used for transport 25% of all energy in EU is used by industry 40% of all energy in EU is used by buildings 2/3 of energy consumption in buildings is used for heating, cooling and ventilation 13

14 Litres oil/m2 SEB Nordic seminar - Copenhagen - 8 January 2013 New buildings the easy part Today, we have well-proven technology which makes it possible to build houses which use 1/10 of the energy that an average house in the EU uses At no significant extra cost over the life time EU average; 14 Best current EU building code; 5 Passive house;

15 EU tightens new build codes End 2018: Passive house level for public buildings End 2020: Passive house level for all buildings Denmark Roof 360mm Roof 585mm % Wall 190mm Wall 345mm Germany Roof 195mm Roof 425mm Wall 90mm % Wall 350mm 15

16 Renovation of existing buildings the difficult part 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 central-governmental building space to be energy renovated yearly (as of 1 January 2014) Long-term building renovation action plans to be developed by member states 16

17 A lot of expansion potential outside Europe Sales office, administration, etc. Factory 17

18 European insulation market 2011 Plastic foam 40-45% Other 5% Recticel (PUR) Kingspan (PUR, EPS) DOW (XPS) BASF (XPS) Market size EUR 6,500 million Glass wool 25-30% Saint Gobain Knauf Uralita Stone wool 25-30% ROCKWOOL International Paroc Knauf Saint Gobain 18

19 Russian insulation market 2011 Plastic foam 29% Glass wool 26% Market size EUR 700 million Stone wool 45% 19

20 North American insulation market 2011 Plastic foam 43% Other 8% Owens-Corning (EPS & XPS) Johns-Manville (EPS & XPS) DOW (EPS & XPS) Market size EUR 4,100 million Glass wool 45% Owens-Corning Saint Gobain Johns-Manville Knauf Stone wool 4% ROCKWOOL International Thermofiber JM (previously IIG) 20

21 China and Southeast Asia Insulation market dominated by plastic foam Glass wool 16% Market size 146 million m 3 Plastic foam 76% Stone wool and slag wool 8% 21

22 Current markets and figures 22

23 Highlights Sales in Q were 7% up compared to same quarter last year The sales growth was primarily driven by better product mix and prices The on-going financial crisis keeps new construction activities at low level but renovation markets continue to perform well Prices on energy sources are trending down whereas other raw materials are still at a high level EBIT increased by 37% compared to Q reflecting the better margin Expectations revised up with sales growth for the full year at 6% and net profit of at least DKK 700 million after restructuring costs. 23

24 Western Europe Overall, trading conditions have deteriorated during autumn 2% sales increase in Q compared to Q is due to positive sale prices and negative sales volume developments in most markets Energy renovation markets continue to show resilience Major regional differences with reasonable trading conditions in France and Germany against difficult markets in UK, NL, Spain, and Denmark Re-engineering of European business on-going 24

25 Eastern Europe & Russia Sales increased by 12% compared to same period last year, varying largely from region to region Growth in Russia still at reasonable level. New Volga factory now running at full capacity Poland which has recovered strongly is now levelling off 25

26 North America and Asia Sales grew by 21% in the region In North America, the nascent recovery in new residential construction supports our development Rebuild after super-storm Sandy will add to renovation activities in Northeast US in the coming months DIY sales development still strong and roofing strategy showing significant progress with a number of big orders from the automotive industry In Asia, sales growth continues but capped by ability to organise imports New factory in Northern China being constructed with start in late

27 Systems segment Sales grew 13% in Q3 compared to same period EBIT was with DKK 70 million more or less flat still affected by extraordinary spending Positive sales development across all major business areas caused by both volume and price increases ROCKFON sales organisation being built up in North America and Asia ROCKPANEL factory project in NL advancing well and fully operational by Q

28 Expectations The Group expects net sales at current exchange rates to increase by 6% for the full year 2012 The Group expects a result after minority interests of at least DKK 700 million including assets write off by DKK 80 million (EBIT) Capital expenditure excluding acquisitions is now expected to be around DKK 1,000 million 28

29 Percentage SEB Nordic seminar - Copenhagen - 8 January 2013 Long term EBITDA ratio e 25% 20% 1,287 15% % 5% % 29

30 Percentage SEB Nordic seminar - Copenhagen - 8 January 2013 Long term EBIT ratio e Limiting factors: too low capacity utilization, inflation was not fully compensated, heavy investment program 20% 15% 1,287 10% 802 Goal 11% 5% % 30

31 DKK million SEB Nordic seminar - Copenhagen - 8 January 2013 Investments and acquisitions Q , ,013 1, Maintenance CAPEX Capacity Program Acquisitions 31

32 Questions 32