Rockwool

Earnings Release • Feb 8, 2018

Annual report for 2017 for ROCKWOOL International A/S

Annual report for 2017 for ROCKWOOL International A/S

Annual report for 2017

for ROCKWOOL International A/S

Release no. 1 – 2018

to Nasdaq Copenhagen

8 February 2018

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Strong sales development with solid profitability driven by productivity and pricing improvements***

Highlights

§ Sales in 2017 reached EUR 2,374 million, a growth of 7.1% in local currencies excluding acquisitions. Total net sales grew 7.8% including currency impact and acquisitions.

§ Full-year EBIT increased by 12% to EUR 258 million, with a 10.8% EBIT margin, up 0.4 %-points from last year.

§ In Q4, in local currencies and excluding acquisitions, net sales increased 10.3%; EBIT increased 25.0%; and EBIT margin reached 11.4%, up 1.5%-points from Q4 last year.

§ Net profit for the year reached EUR 214 million, an improvement of EUR 47 million compared to last year including EUR 25 million for revaluation of shares in Flumroc.

§ Net cash position ended the year at EUR 241 million, an improvement of EUR 125 million over last year. 

§ Investments totalled EUR 130 million, with the main investment being the new Rockfon factory in the United States.

§ Annualised return on invested capital reached 17.9% compared to 15.8% last year, driven by higher operational earnings.

§ The acquisition of the majority shareholding in Flumroc on 17 November 2017 did not have a significant impact on the 2017 operational results.

§ The proposed dividend per share is DKK 24.10, up from DKK 18.80 last year.

Outlook 2018         

• Growth in net sales is expected to reach 7-10% in local currencies, including around 2% from the acquisition of Flumroc. With lower comparables, we expect higher growth rates in the first half of the year.

  - EBIT margin to reach at least 11%.

  - Investment level excluding acquisitions around EUR 230 million.

CEO comment

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

“With sales up in all major markets and solid profitability, 2017 has been another strong year for our business. We delivered a very solid Q4 result with the bottom line up 25% on a top-line increase of 10%. I am very pleased with our organisation’s ability to execute and deliver on our strategy. We see continued good market demand for our non-combustible stone wool products and step into 2018 with a high capacity utilisation”.

Further information:

Kim Junge Andersen, Chief Financial Officer

ROCKWOOL International A/S

+45 46 56 03 00

Conference call:

The ROCKWOOL Group will host an earnings call on 8 February 2018 at 11.00 CET. To attend the conference call dial +4570223500, +44(0)2075721187 or +1 6467224972. Passcode 22247332#. The conference call will be transmitted live on www.rockwoolgroup.com

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