Agenda
1. Welcome by CFO Knud Jørning
2. Main results from Q1-Q2 2006
by CFO Knud Jørning
3. Group development
by CEO Eelco van Heel
Main results from Q1-Q2 2006
by CFO Knud Jørning
Net sales 1st half-year
Net sales has increased with 18% from 2005 to 2006
3719 3734 4097 4490 5304 0% 10% 10% 18% 0 1000 2000 3000 4000 5000 2002 2003 2004 2005 2006 Ne t s a le s i n DKK m il l. 0% 5% 10% 15% 20% 25% 30% A n n u al i n cr ease i n %
EBDIT 1st half-year
EBDIT has increased with 44% from 2005 to 2006
386 429 524 622 896 11% 22% 19% 44% 0 100 200 300 400 500 600 700 800 900 2002 2003 2004 2005 2006 E B D IT in D K K m ill. 0% 10% 20% 30% 40% 50% A n n u al i n cr ease i n %
Depreciation 1st half-year
Depreciation has increased with 45% from 2005 to 2006
309 311 302 437 362 0 100 200 300 400 500 2002 2003 2004 2005 2006 DKK m il l.
EBIT 1st half-year
EBIT has increased with 43% from 2005 to 2006
25 120 213 320 459 386% 78% 50% 43% 0 100 200 300 400 500 2002 2003 2004 2005 2006 E BI T i n DKK m il l. 0% 100% 200% 300% 400% A n n u a l i n cr ease i n %
-51 -46 -45 -18 -29 -60 -40 -20 0 DK K mill.
-26 74 174 309 440 -100 0 100 200 300 400 500 2002 2003 2004 2005 2006 DK K mill.
-22 44 110 200 303 -50 0 50 100 150 200 250 300 350 DK K mill.
16 226 297 47 2 10 16 41 -38 -32 -23 7 361 150 58 -100 0 100 200 300 400 2002 2003 2004 2005 2006
Insulation Systems Division Elim. & Holding companies
EBIT 1st half-year per business segment
DK
-77 -200 -91 -314 -326 -350 -300 -250 -200 -150 -100 -50 0 DK K mill.
643 660 776 1062 864 0 200 400 600 800 1,000 1,200 2002 2003 2004 2005 2006 DK K mill.
1351 1487 1574 1575 1797 0 200 400 600 800 1000 1200 1400 1600 1800 2000 DK K mill.
Net sales full year
Net sales expected to grow by 12% from 2005 to 2006
7919 8216 9143 10024 11227 4% 11% 10% 12% 7000 8000 9000 10000 11000 12000 2002 2003 2004 2005 2006e Net sal es i n DKK m il l. 0% 5% 10% 15% 20% 25% 30% An n u a l i n crease i n %
37.0 33.0 33.2 39.9 31.3 0 10 20 30 40 DK K mill.
Tax percentage
-78 -99 -80 -43 -60 -120 -100 -80 -60 -40 -20 0 2002 2003 2004 2005 2006e DK K mill.
131 574 254 406 750 0 150 300 450 600 750 DK K mill.
Development of the Group
by CEO Eelco van Heel
Key points
1. Market development
European building insulation market
Other markets
2. Main changes in the competitive landscape
3. The capacity situation
4. Legislative opportunities
EPBD
Growth in
European
construction
markets
in 2005
>5% 3-5% 1-3% 0-1% <0%Expected growth in
European
construction
markets
in 2006
> 5 % 3-5 % 1-3 % 0-1 % < 0 % > 5 % 3-5 % 1-3 % 0-1 % < 0 % GERMANY 16% of our turnover in 2005 2005 growth: - 4.5% 2006 growth est.: 1.1% > 5 % 3-5 % 1-3 % 0-1 % < 0 % UK 7% of our turnover in 2005 2005 growth: 0.5% 2006 growth est.: 1.3% > 5 % 3-5 % 1-3 % 0-1 % < 0 % POLAND 7% of our turnover in 2005 2005 growth: 3.9% 2006 growth est.: 5.6%European (EU) building insulation market
No lasting negative effect on the increasing building
industry activity from rising inflation (incl. energy
prices), interest rates and regional shortage of certain building materials
Increased focus on energy efficiency in buildings – in
particular from the legislator. The insulation market will outgrow the building market – 4 to 6% by 2009
compared to today
The residential market will remain stable at the rather
high levels of previous years
The non-residential market will grow in line with the
European (EU) building insulation market
The refurbishment market is growing, fuelled by high
energy prices and new financial incentives:
In Germany EUR 1.4 bn/year for increased energy efficiency in existing dwellings. The interest has been overwhelming
Incentive programmes being introduced in many other countries e.g. France, Spain and the UK.
EU’s structural funds now to target building projects in the new member states :
Other markets
The building insulation markets in North America, Russia and the Ukraine remain buoyant – however – with a slow down in the US residential segment
The technical insulation market is growing fast due to a general under capacity in the petrochemical and power generation industries
The horticultural greenhouse industry continues to suffer from high energy prices. Despite this, our Grodan
European competitive landscape
Finnish stone wool and sandwich panel producer Paroc acquired by capital fund Arcapita
Knauf indicates further glass wool capacity increase in Eastern Europe
Capacity situation
The Rockwool Group is presently establishing new
capacity – both greenfield as well as at existing facilities – in order to match the expected market growth in the coming years
Grand Forks Milton Melaka (Malaysia) Wern Tarw Roermond Caparroso Moss Doense Hedehusene Gladbeck Neuburg St. Eloy- Les-Mines Vamdrup Trondheim Flechtingen Cigacice Malkinia Bohumin Gógánfa Tapolca Vyborg Moskva Istria (under construction)
Geographic expansion
Capacity situation
The Rockwool Group is presently establishing new
capacity – both greenfield as well as at existing facilities – in order to match the expected market growth in the coming years
Management has at this point in time a number of additional capacity increase projects on the drawing board
Legislative opportunities
The Energy Performance of Buildings Directive (EPBD) enforces:
Building regulations must be based on total energy performance calculations
Energy certification (incl. advise on energy efficiency
improvement measures) of buildings which are constructed, sold or rented
National building regulations to be revised (= tightened) concerning energy efficiency every 5 years
Legislative opportunities
No member states managed to fulfil all requirements
concerning implementation by the target date 4 January 2006 but Germany and Denmark were close
In a number of countries, energy requirements for new constructions are now strengthened as a consequence of the implementation
Such strengthened requirements will usually impact the market with a 12 months delay due to the building cycle Implementation of the EPBD is still ongoing:
Changes in energy requirements of new
buildings
Legislative opportunities
The Rockwool Group wishes to play a major role in the market for energy efficiency in buildings and has therefore established the BuildDesk Division
BuildDesk is unbiased and offers software tools, services and consultancy
BuildDesk is active in Germany, Holland, the UK and
Legislative opportunities
Major BuildDesk achievements since March 2006
Launch of energy performance software for newdomestic buildings and supporting seminars in the UK
Energy certification and consultancy software and training launched in Denmark
Strategic “energy certificate” partnership established in Germany with DENA (Deutsche Energie Agentur), the Federal Ministry of transport, building and urban affairs, the energy company E.ON and EID (Energiepass
Initiative Deutschland)
Legislative opportunities
Directive on energy end-use efficiency and energy services (ESD)
Adopted in December 2005
Enters into force in 2008
Goal: To improve end-use energy efficiency in each
member state with minimum 9% over a period of 9 years either through national initiatives and/or through
obligations on energy providers to help end users improve energy efficiency
We expect the ESD will have a market impact comparable to the EPBD
