Annual Report 2018

Reshape tomorrow

Annual Report 2018

Our company is financially solid, expanding operations to meet customer demand, and benefiting from strong brand awareness and reputation.

An attractive mix of high organic growth and productivity has contributed to a financial result in which net sales increased close to 15 percent in local currencies; EBIT margin grew by two percentage points, reaching almost 13 percent; and net profit reached EUR 265 million, a EUR 51 million improvement over 2017. We remain net debt free with net positive cash position of EUR 375 million.

In 2019, we expect sales growth in the range of 4-8 percent in local currencies and an EBIT margin around 12 percent. Investments excluding acquisitions are expected to reach around EUR 330 million for the year.

RockWorld imagery, The big picture, urban, city, buildings

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Click the play button to listen to the investor call on full-year results.

Previous webcast

Annual Report 2018 for ROCKWOOL International A/S

Friday, February 8 at 11:00 AM CET

Presented by

CEO Jens Birgersson
CFO Kim Junge Andersen
Director, Group Treasury & Investor Relations, Thomas Harder

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Investor presentation

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1.2 MB

“Growing demand for stone wool insulation contributed to good growth across all markets, where Central & Eastern Europe, the United Kingdom and North America performed particularly well”.

Henrik Brandt & Jens Birgersson

Sales

14.7% growth in local currencies

EBIT margin

Up from 10.8% last year

ROIC

Up from 17.9% last year

ROCKWOOL Group delivered positive sales development with growth of 14.7% in local currencies and improved profitability with an EBIT margin of 12.8% driven by growth and productivity improvements.

“Continuous improvement initiatives at our manufacturing sites together with investments in new manufacturing capacity are aimed at supporting short- and long-term growth for ROCKWOOL. We are also investing in improving our existing manufacturing facilities to become more energy efficient and with less environmental impact”.

Henrik Brandt & Jens Birgersson

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Market review and outlook 2019

In 2018, favourable construction market conditions that took hold in 2016 continued through the year. Growing demand for stone wool insulation contributed to good growth across all markets, where Central & Eastern Europe, the United Kingdom and North America performed particularly well. After a slow start in 2018, the Russian market turned positive during the year.

For 2019, we see greater market volatility related among other things to trade tensions, the volatile geopolitical climate and general business cycle uncertainties for the global economy. With a solid backlog of building permits, however, we see a positive outlook for construction in 2019, though at a lower growth level than 2018. Euroconstruct currently anticipates an overall construction sector growth of around two percent, which is about one percentage point lower than in 2018.

Picture - © the Antwerp Port Authority - Peter Knoop

Havenhuis/ Port House - Acoustic Capabilities

Outlook 2019

Sales growth

in local currencies

EBIT margin

around

Investments

excluding acquisitions

Financial performance

ROCKWOOL Group delivered positive sales development above the general growth within the construction industry in both the large European markets as well as in North America in 2018 as demand for our non-combustible insulation products remained strong.

The positive development in net sales was due to good growth in volume in most main markets and the fact that we utilised available capacity in our network of factories in Europe to meet customer demands, with reliable stable delivery service as well as a higher increase in sales prices compared to last year.

RockWorld imagery, The big picture, rock, water, sea

Sales

14.7% growth in local currencies

EBIT margin

Up from 10.8% last year

ROIC

Up from 17.9% last year

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For more information, contact Investor Relations

Kim Junge Andersen

Senior Vice President, Chief Financial Officer (CFO),
ROCKWOOL Group

+45 46 55 80 15

investor@rockwool.com