Rockwool — Earnings Release 2016

Nov 17, 2016

Strong profitability in a continuing slow market

Hedehusene, Denmark, 2016-11-17 08:30 CET (GLOBE NEWSWIRE) --

First 3 quarters report of 2016 for
ROCKWOOL International A/S

Release no. 8 – 2016
to Nasdaq Copenhagen

17 November 2016

Strong profitability in a continuing slow market

Highlights

• Sales in local currencies in the first 3 quarters increased by 2.3%. Q3 sales
  grew 1.6%, measured in local currencies.

• EBIT increased by 40% to EUR 176 million equal to an 10.9% EBIT margin in
  the first 3 quarters, with significant EBIT margin increase in the Insulation
  Business. EBIT in Q3 was EUR 70 million and the EBIT margin reached 12.2%

• The Group’s business transformation program is ahead of schedule and
  contributed with EUR 31 million included in the EBIT result of the first 3
  quarters.

• Investment expenditure was EUR 91 million in the first 3 quarters of 2016,
  hereof EUR 21 million in Q3.

• Free cash flow improved by EUR 117 million to EUR 140 million for the first 3
  quarters of 2016. Q3 generated a strong free cash flow of EUR 127 million.

• Net profit for the first 3 quarters reached EUR 122 million, an improvement
  of EUR 53 million. Net profit in Q3 was EUR 49 million.

Full year Outlook 2016 maintained

• The Group’s net sales are still expected to show a small positive organic
  growth in local currencies.

• EBIT margin excluding redundancy costs related to the Business Transformation
  Program is still expected to be around 10%.

• Investment expenditure expectation for 2016 remains unchanged at around EUR
  130 million excluding acquisitions.

*) Ex. redundancy costs from the Business Transformation Program from 2016 and
2015 and write-downs in Asia in 2015.

CEO comment

Commenting on the Group’s performance, CEO Jens Birgersson says:

“We are pleased with the development for the first three quarters. The EBIT
margin reached nearly 11%. Our free cash flow generation was strong and we are
now net debt free. In the quarter, markets were relatively slow however the
System segment delivered a strong top line with 8% growth”

     Further information:
     Kim Junge Andersen, Chief Financial Officer
     ROCKWOOL International A/S
     +45 46 56 03 00