H1/Q Financial Results

Transcription

1 H1/Q Financial Results 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 distribution-related 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. In no event shall ROCKWOOL International A/S be liable for any direct, indirect or consequential damages or any other damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other action, arising out of or in connection with the use of information in this presentation. 2

3 Highlights H1 Sales of EUR 1,118 million up 6.6% in reported figures Sales increase in local currencies 5.0% EBIT of EUR 110 million up 5% compared to last year EBIT margin of 9.8% down 0.2 pp Free cash flow of EUR 13 million equal to last year Net profit EUR 79 million improvement of EUR 6 million 3

4 Highlights Q2 Sales of EUR 584 million up 5.3% in reported figures Sales increase in local currencies 4.2% EBIT of EUR 64 million up 1.1% compared to last year EBIT margin of 10.9% down 0.5 pp Free cash flow of EUR 64 million up by EUR 14 million over last year Net profit EUR 47 million improvement of EUR 2 million 4

5 H1 sales growth of 5% Sales grew 5% in local currencies. Sales increased 6.6% in reported figures and reached EUR 1,118 million with a positive currency effect of 1.6%-points primarily due to a stronger Russian rouble and to a lessor extent, the US dollar. H1 NET SALES +5% +6.6% Reported figures We have progressively improved pricing since the beginning of the year. Local currencies However, there is still a time gap between the significant input cost increases and sales prices increases, which we expect to gradually narrow during the coming periods. Insulation up 5.2% in local currencies, and 7.0% in reported figures reaching EUR 839 million, owing mainly to the building insulation segment in Western and Eastern Europe and North America. Systems continued the strong growth mainly stemming from the Grodan business in both North America and Europe. Systems sales up 4.7% in local currencies and 5.6% in reported figures amounting to EUR 279 million. H H H1 NET SALES PER BUSINESS AREA +5.2% Insulation +7.0% +4.7% +5.6% Systems Local currencies 2017 reported figures 5

6 Q2 sales growth of 4.2% Sales grew 4.2% in local currencies despite negative seasonal impact of around 2%-points. Q2 NET SALES +4.2% +5.3% Sales increased 5.3% in reported figures and reached EUR 584 million with a positive currency effect of 1.1%-points. Continued strong focus on increasing sales prices to offset significant inflation on input costs. As expected, prices increased at faster pace in Q2 over Q1, though still with a time lag relative to inflation, which we believe peaked in Q2. Q Q Reported figures Local currencies Insulation up 4.2% in local currencies, and 5.7% in reported figures amounting to EUR 440 million, owing mainly to the building insulation segment in Western and Eastern Europe and North America. Systems saw strong growth from the Grodan business while Rockfon had a slow quarter. Systems sales up 3.9% in local currencies and 4.4% in reported figures and reached EUR 144 million. Q2 NET SALES PER BUSINESS AREA +4.2% +5.7% +3.9% +4.4% Local currencies 2017 reported figures Insulation Systems 6

7 Regional developments Q2 Like-for-like growth Western Europe 1.1% 0.3% incl. FX effect CEE incl. Russia 12.2% 21.8% incl. FX effect Key developments Quarterly results negatively affected by the fewer sales days, but with overall good market developments. Continued strong recovery in France. Good market development in Netherlands, UK, Germany, and Sweden. Satisfactory single-digit sales growth in Russia. Double-digit growth in local currencies in all other main countries. Positive currency effect of 9.6%, owing primarily to the Russian rouble. Share of Sales 57% 19% North America, Asia and others 5.7% 6.4% incl. FX effect Continued double-digit growth in US. Canada performed well in the quarter. Southeast Asia experienced negative sales growth. Positive currency effect of 0.7%. 24% 7

8 H1 profitability - 0.7% EBITDA amounted to EUR 189 million, which was at level with last year. EBITDA margin of 16.9% which is 1.3 %-points lower than H due to time lag between the higher inflation on input costs and sales price increases % EBITDA EBIT The gap is expected to narrow during the coming periods. H1 15 H2 15 H1 16 H2 16 H1 17 Start-up costs in connection with the opening of the Rockfon factory in the United States. 14.7% 15.8% 18.2% 17.2% 16.9% EBIT increased 5% and reached EUR 110 million. Corresponding to an 9.8% EBIT margin, a decrease of 0.2 %-points. 6.9% 8.6% 10.0% 10.8% 9.8% EBITDA-margin EBIT-margin H1 15 H2 15 H1 16 H2 16 H1 17 8

9 Q2 profitability EBITDA down 4% to EUR 103 million. EBITDA margin of 17.7%, which is 1.7 %-points lower than Q Profitability impacted by time lag between the higher inflation on input costs and sales price increases as well as start-up costs in connection with the opening of the Rockfon factory in the United States. Sales prices showed a positive development during the quarter % % Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 EBITDA EBIT EBIT increased slightly and reached EUR 64 million. Results in a 10.9% EBIT margin, a decrease of 0.5 %-points. 16.0% 16.1% 16.8% 15.4% 8.4% 9.3% 7.9% 8.4% 19.4% 18.3% 16.1% 16.2% 17.7% 11.4% 11.8% 10.9% 9.9% 8.6% EBITDA-margin EBIT-margin Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 9

10 H1 segment profitability H1 EBIT +10% Insulation EBIT increased 10% to EUR 70 million. EBIT margin up 0.2%-points to 7.3%. North America showed higher earnings level driven by sales growth, improved pricing quality and a better utilisation of the US factory % 39 H H Insulation Systems Systems EBIT down 3% to EUR 39 million. EBIT margin 14.0%, this is 1.3%-points lower than the same period in 2016 mainly from increasing input costs, especially on steel, as well as one-off costs in connection with the factory and IT projects for Rockfon North America. EBIT-MARGIN (%) 14.2% 3.9% 12.6% 6.3% 15.3% 7.1% 13.2% 8.6% 14.0% 7.3% Insulation Systems H1 15 H2 15 H1 16 H2 16 H

11 Q2 segment profitability Q2 EBIT +1.7% Insulation EBIT increased 2% to EUR 43 million EBIT margin down 0.3%-points to 8.5%. stable Q Heavy impact from inflation on input costs Q North America continued to perform well. Insulation Systems Systems EBIT was stable at EUR 21 million. EBIT margin 14.5%, which is 0.6%-points lower than the same period in 2016, owing to one-off costs in connection with the factory and IT projects for Rockfon North America. EBIT-MARGIN (%) 14.5% 5.6% 13.9% 7.1% 15.5% 15.8% 15.1% 11.5% 8.8% 9.2% 5.5% 5.1% 11.0% 8.0% 13.6% 6.0% 14.5% 8.5% Insulation Systems Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q

12 Free Cash Flow in H1 and Q2 Cash flow from operations before financial items and tax was EUR 103 million in H1 2017, which is EUR 8 million lower than same period last year mainly from net working capital. In Q it amounted to EUR 97 million, which is EUR 14 million higher than same period last year. NWC decreased to 10.6% of net sales, decreasing from EUR 247 million in Q to EUR 241 million in H1 2017, as we saw an improvement in outstanding trade accounts receivables. Free cash flow in H reached EUR 13 million similar to last year, while it increased by EUR 14 million in Q and reached EUR 64 million. ROCKWOOL is net debt free with a net cash position end of second quarter of EUR 88 million, an improvement of EUR 192 million. FREE CASH FLOW Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 H1 2016: EUR 13m stable Q2: EUR 14m H1 2017: EUR 13m 12

13 Investment activities in H1 and Q2 Capital expenditure totaled EUR 63 million in H and EUR 28 million in Q2 2017, which is at level with last year for the quarter. Capacity investment mainly relates to the new Rockfon production facility in US, which began production in July INVESTMENTS AND ACQUISITIONS 31 Aquisitions Capacity Program Maintenance CAPEX Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q

14 Outlook for

15 Guidance for 2017 upgraded 1. Sales 2. EBIT Net sales are now expected to show positive growth of 5-7% in local currencies (previously 2-4%). The EBIT margin is still expected to be slightly above 10%. 3. INVESTMENT Investment expenditure excluding acquisitions is now expected at around EUR 150 million (previously EUR 130 million). 15

16 Key Figures for the Group Q Q YoY (%) H H YoY (%) FY 2016 Income statement Net Sales % 1,118 1, % 2,202 EBITDA % % 389 EBITDA % 17.7% 19.4% -1.7pp 16.9% 18.2% -1.3pp 17.7% EBIT % % 229 EBIT % 10.9% 11.4% -0.5pp 9.8% 10.0% -0.2pp 10.4% Profit before tax % % 225 Profit for the period % % 166 Balance sheet Total Assets 1,984 2, % 1,999 Equity 1,533 1, % 1,536 Equity ratio 77.3% 69.9% 7.4pp 76.8% 16

17 Questions? 17

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