Rockwool — Earnings Release 2016

Aug 25, 2016

Strong EBIT growth as impact from the Business Transformation Program
accelerates

Hedehusene, Denmark, 2016-08-25 08:24 CEST (GLOBE NEWSWIRE) --

First half year report of 2016 for
ROCKWOOL International A/S

Release no. 7 – 2016
to Nasdaq Copenhagen

25 August 2016

Strong EBIT growth as impact from the Business Transformation Program
accelerates

Highlights

• Sales in local currencies in the first half year increased by 2.6%. Q2 sales
  grew 3.7%, measured in local currency.

• EBIT increased by 44% to EUR 104 million equal to a 10% EBIT margin.
  Especially the Insulation Business EBIT margin grew significantly. EBIT in Q2
  was EUR 63 million.

• The Group’s business transformation program accelerated and contributed with
  EUR 19 million included in the EBIT result of the first half year.

• Investment expenditure was EUR 70 million.

• Free cash flow improved by EUR 43 million to EUR 13 million for the half year

• Net profit reached EUR 73 million, an improvement of EUR 23 million. Net
  profit in Q2 was EUR 45 million.

• New sustainability report released today.

Outlook for the full year

• 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 now expected to be around 10%, an upward adjustment from the
  previous expectation of ‘above 9%’.

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

CEO comment

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

“I am very satisfied with the continued improvement in our performance
especially within the Insulation business. This is a result of the acceleration
of our Business Transformation Program, improved market conditions in Germany
and the successful expansion in the US. We are confident that we will deliver a
strong result for 2016”

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