Full Year Results Monday, 1 st March 2010

Transcription

1 Full Year Results 2009 Monday, 1 st March

2 Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forwardlooking information involves risks and uncertainties that could affect expected results. 2 2

3 Agenda Highlights for 2009 Financial Review Review by Business Unit Strategy & Outlook 2010 Farnborough, UK 3 3

4 2009 Financial Performance Turnover down 33% to 1,125.5mn On constant currency -28% Pre-Exceptional Operating Result down 60% to 62.7mn On constant currency -57% Basic EPS 28.7 cent, up 7% Net Debt 164.3mn, a reduction of 135.3mn, interest cover 9.4 times Reduction in working capital of 99mn Total investment of 48.1mn of which capex was 43.2mn DCT Dome Happy Jack, Arizona 4 4

5 2009 Operational Performance Solid performance in 2009 from the overall Group, despite hostile economic conditions In Insulation Boards, total sales volumes were down 23%, although growing sales and penetration in Western Europe Insulated Panels UK, Ireland and Western Europe sales volumes were down 33%, with particular weakness in the speculative development segment Insulated Panel sales volumes in North America were down 23% - Architectural Façade products strong Central and Eastern Europe was also weaker with sales volumes down 25% - reorganisation of this unit will continue into 2010 Access Floors sales volumes were down 31% globally, however, margins and profitability were strong Group wide, fixed cost reductions in the year of 50mn, bringing the total since peak to 66mn. This process is largely complete Total investment in the year 48.1mn: Kooltherm facility, Tiel, Netherlands Insulated Panel facility, Toronto, Canada Solar facility, Northern Ireland 5 AIR-CELL Insulation acquisition, Perth, Australia 5

6 2009 Bottoming Out Peak to trough drop in volume of 50% Fixed cost reduction of >20% Capital investment curtailed/postponed Capacity in situ for turnover of 2bn + Debt reduced by 135.3mn to 164.3mn Operational leverage of +25% to benefit from future top line improvement Product, Geographic Market & Sector Development continues unabated Underlying growth business model very much intact Hamilton Art Gallery, Ontario, Canada 6 6

7 Summary P&L Total Total YoY '000 '000 % change Revenue 1, , % Trading Profit % Intangible amortisation (4.6) (4.4) -4% Non-trading items (75.1) - Operating result % Net finance cost (13.9) (6.0) -57% Result for the year before tax % Income tax expense (24.1) (8.7) -64% Net result for the year % Basic EPS ( cents) % Diluted EPS ( cents) % Dividend per share ( cents) 8.0 Nil 7 7

8 2009 Sales by Geography 27% 11% % 10% mn % change at constant currency % change YoY Republic of Ireland % 55% Britain & Northern Ireland % 39% Mainland Europe % 31% Americas % 9% Other % 4% Group Sales 1, , % 33% % 17% 3% 7% 45% Republic of Ireland Britain/Northern Ireland Mainland Europe Americas Other 28% 8 8

9 Sales by Product Group % change at constant rates % change at actual rates mn Insulated Panels % 31% Insulation Boards % 38% Environmental & Renewables % 37% Access Floors % 26% Group Sales 1, , % 33% 'mn Insulated Panels Insulation Boards Environmental & Renewables Access Floors

10 Turnover Bridge 1,800 'mn 1,600 1,400 1,200 1, , ,

11 Operating Profit by Division before Amortisation & Non-Trading Items Total Group 9.7% 6.5% 17.5% 18.0% 16.0% 14.0% 12.9% 14.0% 12.0% 10.0% 8.0% 6.0% 5.3% 5.9% 6.4% % 2.0% 1.0% 1.7% 0.0% Panels Insulation Boards Environmental & Renewables Access Floors 11 11

12 Operating Profit Bridge 'mn EBIT 2008 Acquisitions Operating Costs Volume Margin EBIT

13 Cost Savings 66mn annualised fixed cost savings achieved since the peak summarised as follows; Cost Savings Total H2 08 H1 09 H mn 31mn 19mn 66mn Cost Savings by Division 22% 7% 54% 17% Insulated Panels Insulation Boards Environmental & Renewables Access Floors 13 13

14 Free Cash Flow 'mn (50) (100) (66.8) (48.2) (20.5) (25.1) EBITDA Change in Working Capital Other 14 14

15 Cashflow Statement 'mn Inflows Operating profit Depreciation Amortisation Pension contributions (2.6) (2.9) Working capital (increase)/decrease Interest paid (12.7) (12.9) Taxation paid (18.1) (10.1) Others Free cash flow Acquisitions (92.6) (8.0) Net capital expenditure (97.5) (45.9) Dividends paid (42.3) (0.3) Share Buyback (32.6) 0.0 (265.0) (54.2) Cash flow movement (67.3) Debt translation (7.3) 1.8 Decrease / (increase) in net debt (74.6) Net debt at start of year (225.0) (299.6) Net debt at end of year (299.6) (164.3) 15 15

16 Net Assets Statement & Key Ratios Net Assets Statement - mn Tangible Fixed Assets Intangible Assets Working Capital Current Corporate Tax & Deferred Tax (47.4) (43.5) Provisions (60.2) (64.2) Net Debt (299.6) (164.3) Net FX on PP Debt Net Assets Key ratios Gearing (Net Debt:Shareholder funds) 57.7% 28.1% Debt/EBITDA Interest Cover ROCE (before non-trading items) 19.2% 8.4% Working Capital as % of Sales 13.3% 11.0% 16 16

17 Capital Expenditure 'mn Capex Acquisitions 17 17

18 Working Capital Working Capital, m Working Capital Days 18 18

19 Core Banking Facilities Revolving Credit Facility of 330mn September 2013 maturity date Private placement 151mn (USD200mn) Repayable mn & mn Same covenants as Revolving Facility Various bilateral facilities totalling c. 65mn Significant headroom on covenants Max 3.5x net debt:ebitda; actual 1.6 Min 4.0x interest cover; actual 9.4 Min 400mn net assets; actual 585.5mn Year end 2009 Net Debt 164.3mn headroom c. 380mn 19 19

20 Debt Maturity Schedule 'mn Actual debt Total Facilities Committed Facilities Loan Notes 20 20

21 Insulated Panels UK, IRL, WE Sales ( mn) % of Group Sales 33% 30% UK market remained tough throughout the year, volume down 35% Ireland deteriorated further, volume down 61% Benelux was comparatively solid, volume down 14% Australia/New Zealand grew by 9% - business gaining traction Total orderbook -15% on prior year Intake in recent months marginally ahead of prior year Analysis of YoY % change Currency Volume Price & Mix Total -4% -33% -3% -40% Bradford University Campus Phoenix Place, Essex, UK 21 21

22 Insulated Panels CEMEI Sales ( mn) % of Group Sales 14% 14% Note: The above figures include Germany and Turkey From Q2 2009, volumes began to slip materially finishing the year down 25% Czech, Romania and the Baltic states worst affected Germany and Poland relatively solid Turkey/Middle East volumes similar to prior year, good progress in margin improvement Present focus on operational restructuring Orderbook down 3% on prior year, and recent intake similar to prior year Analysis of YoY % change Currency Volume Price & Mix Total -5% -25% -3% -33% Ostrava, Czech Republic 22 22

23 Insulated Panels North America Sales ( mn) % of Group Sales 4% 9% Currency Analysis of YoY % change Volume & Price Acquisitions Total +5% -23% +62% +44% Very challenging non-residential construction environment Overall sales down an underlying 23%; Commercial/Industrial very weak, Architectural solid Excellent progress on US Acquisition integration and operational cost reduction Canada facilities (Vancouver & Toronto) now commissioned, startup difficulties Low energy legislation slow to progress, but moving in the right direction Caterpillar, US 23 23

24 Insulation Boards Sales ( mn) % of Group Sales 21% 19% UK market remained weak, particularly in newbuild housing, until Q4, where some uplift was experienced - overall volume down 24% Ireland weakened further towards year end, down 34% Western Europe performance was very strong, volume up 4%, particularly in Kooltherm range in Germany Market entry into Australia with acquisition of AIR-CELL in December Slow weather related start to 2010, particularly in Western Europe Analysis of YoY % change Currency Volume Price & Mix Total Insulation -6% -23% +4% -25% Currency Price, Mix & Volume Total Engineered Timber Systems -3% -69% -72% Emirates Stadium, Arsenal Football Club, London 24 24

25 Environmental & Renewables Sales ( mn) % of Group Sales 16% 15% Currency Analysis of YoY % change Price & Volume Disposals Total -8% -21% -8% -37% Exposure to UK and Ireland resulted in heavy volume decline Hot Water was down for most of the year, but began recovery in Q4 Solar, particularly in Germany, weakened significantly, but product costs now lower since new manufacturing processes installed Pollution Control weak on newbuild housing Overall significantly lower cost base, Vieste, Italy Early 2010 performance is broadly flat on prior year 25 25

26 Access Floors Sales ( mn) % of Group Sales 12% 13% Analysis of YoY % change Currency Volume Price & Mix Total -1% -31% +6% -26% Volumes weak, down 29% in North America and down 32% in Europe Sizeable export contracts Favourable mix and cost reductions reinforced margin performance Current rising steel, and contracting office starts will materially impact margins later in % +36% RBC Centre, Toronto, Canada 26 26

27 Building Regulations by Region Percentage improvement in standards from 2005 *Note: 2011/16 are estimates in UK & US 27 27

28 Penetration Potential Insulated Panels UK Insulated Panels NA 60% 7% 75% 10% UK Insulation 33% 40% Germany External Wall 1.5% 10% CEE Insulation 0.5% 8% 29 29

29 2010 Outlook More stable volumes anticipated in the UK, Western and Central European Panel volumes US volumes likely to weaken, and Canada may improve slightly Insulation volumes in Ireland will weaken, while the UK and Western Europe should prove more steady after Q1 Environmental should improve as UK newbuild housing starts rise Access Floors will show steep volume decline globally Overall margins will be pressurised from excess capacity in all products, and rising steel prices in the first half 30 30