KGSPF - Earnings call transcript Q2 2022

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Operator

Hello, everyone and welcome to the Kingspan Interim Results 2022 Conference Call. My name is Nadia and I will be coordinating the call today. [Operator Instructions] I will now hand over to your host, Gene Murtagh, CEO of Kingspan to begin. Gene, please go ahead.

Gene Murtagh

Nadia, thank you very much and welcome everybody to the interim 2022 call here at Kingspan.

into straight get will the business. We you’ve take you assuming XXXX summary. got is the just we’ll in there, deck to HX slide titled And Slide which #X,

outturn was we by as highlighted, XX%. EPS, ahead revenue €X.X strong So by pretty at have a XX% trading essence, first half, it performance in ahead and billion, for of XX%, the much basic very profit, and

expect brief, ahead the of half increased year is taking XX%, period, Insulated the that in business, strongly QuadCore into remarkable in Just businesses it main and course which as was the improvement which very the reasonably well. and the the our in which XX% in sales largest, division, volume inflation, was into terms solid we strong. next to by through driven the to increase of second in significant a by Panels by proportion volume very, again, And pretty

Brussels, commitment to ahead which for district XX%, German technical this a is of just an a on additionally, XX% which exceptionally of in Our about types the heating a the sector, billion Insulation by very we €XXX around acquisition once are by way the improvements comprises week, even inflation you for rate around recently by near and side, running sales. government, in annualized of the there year obviously the division very well that ago. heating infrastructure intake XX% performing as at division now the Logstor, term. standout was that over of level, supported is Order there. note million. the And a €X specifically initiatives strong which as here, the give flavor And insulation again, but is were Of general sales district at sure acquired just

So single of travel that’s direction country the the there. one example, of

establishment the XX% participate to Belgium-based part now again, be Waterproofing, strategy pan-European will the in Nordic in of global for road of our hit in we and mid-September. acquisition, Nordics Rubber time. this supplier; and extremely Roofing has our quoted The that business called acquisition that well as really Derbigum the in able Antitrust we then which about we business recently the positioned in June, are in very future. is strategic with And of it of in stake which take the and platform So & to Ondura the talked Then again, by recently, advantage a some minority have which cleared acquired just is a obviously, Sweden. in, was have more just EU Waterproofing close segment,

feet we for exciting a our globally. are market well table and the So end got under now very and it’s division this in truly us

the Light are two the half. which the In feature increase So, markedly to progress on significant will & area very been also a fronts, an then, a RMI, of solid in these the good business, in exposure divisions very traditionally combination is number they which of other first Kingspan. of businesses, less a has Air but group’s

will We evident order just not expect Key second theme a strong here half. the first margins, half, which is but second which is in intake, improving half. we the very through in in deliver

I’d have any liked, say, lastly, ever had stronger slow & the in data than side, well that side. largely half. track actually time to that around, a weaker in start some business, business. through coming and certain on that raw the second than solutions that of we around first business past. then expect Flooring Recovery we business Water the we and say strong newer again do pipeline are would I’d of probably well gaining underway the to at pockets the Data the is has if that So anything, recovery the half the solutions what And data materials would performed in traction, of over business outlined. division And margins, it performance The deliver looks Energy well-improved particularly of & largely a are

& around the attractive Waterproofing, arteries very if business on as We term. buildings. more years were of these areas with the & outlined on have envelope Air, and Technical broader of around this, Roofing Light in – you kind long Insulation, the of some recently Slide touched being X, strategy ago which but to the We’ve essence the take highlighted deals in we the us that

up have We at very, we in those €XXX are of cases, those have or very really stages in excess the businesses in And now position. recently. relatively categories, and, that had until of global at embryonic positions million some taking in a three early

really the future. been has that will encouraging progress strategy, further out in there So whole and fleshing be on that we

with hand Catriona of the topics. deal So to issue some over bigger I’ll you to just other

Catriona Nicholson

morning, some mega driving people X, are the the everyone. and industry addressing we our forward. following business trends And And on slide, Slide examples some of how of of touch remind Gene. are give Good that just moving briefly and those. I’ll to just Thanks, on to driving the got really

refurbishing key really installation a particularly very priority obviously, and is addressing climate out that, that’s think, and a in I energy-efficient change there. role building building around So play around global

growing renewable this and and been independence geographies I think independence we’ve is year fossil building resilience all the into on energy fuels. reliance Sustainability important of all and away around from energy building importance and reminded and theme. an

also doing and and Planet talk market-leading the of minutes products a next how region Passionate innovations in types. of address but a another we’re just little we talk how finally, the to and have of we the workforce, through We bit theme labor of low-carbon client in in markets little talk are performance, materials just products aging that of over around that. last bit construction couple address we I’ll we And years. been that slide build some the the in shortages about solutions. labor those a And And about particularly utilize couple will how on

if you please. So on to Slide X, move

efficiency first one of emergency talking businesses [indiscernible]. UK, the is it of project would drive we cornerstone a from was And emissions that reduction that in XX% climate estimation heating refurbishment within that and really that refurbishment So bit forward. well in talk really and houses example as to Inflation addresses everything that space independence moving this buildings. energy encompassed the a heating that, is it energy space building – about around the carbon for cooling. houses And Germany week. It be project, drives a in And ways an we little more and Gene the renewable it’s building for around aversing to else. ability into to mentioned, addressing resolved just obviously, is community an and going heating. those address to the developments because look very district important independence the there, a energy needs And for recent

heating. is obviously Logstor money at in fuel waste a will moment and won we one move bit that’s moving it in that quicker little he West, and innovation. labor a to case source where bit to renewable And using built the industry project Gene a least equivalent XX,XXX up QuadCore, say a about more So of aspect the time saving projects. coal from heating around body let examples of will and a than Hamburg lower as talk when I our parcel systems studies away up talks in to have installation fuel to XX% And saving risk it’s can or a recently energy. ways. from renewable and on from be QuadCore carbon actually And to renewable fossil from just and away the district heating homes

So to and that’s a a study our there, Gene X. Slide that pass on to then paper link for back I’ll and white case

Gene Murtagh

you thank much. Catriona, Great. very

to as preferences said, be the X, provider insulation is you’re everything going feature the to full this is we’ve We’ve dating well, long Catriona really to commercialize in the natural scale spectrum solutions And as Slide off we the are. we’d primary had particular are technologies the primarily particular at from increasingly, for are – cover business reason us we at very in applications right the in have ambition a of of high-performance across that’s insulation various a is with the for we And different not right legacy circularity, materials technologies. covering everything, the organization, timber-based expect a organization. that thermal, which areas but others, see and not-too-distant throughout the our we this other technologies, deck fire, legacy future. that that earlier more in have are portfolio There we just of with Obviously, unique started in vary. So And year. moment, issues the materials, that certain have carbon obviously whether materials. trial the in-house, advanced the pipe whatever the sense call products we what small And an in albeit on that two lot than side. focus cost,

be technologies, we that, the provide a say, in and the is vast the is scope across pony these one-trick as able So portfolio look not singular key broad any of the for across as as to this world. the and of because – a here be answer as to us I all obviously,

model. X, Slide on will launched so is been area UK far familiar these, power lot the but in you only them run that’s launched obviously progress the with innovations of stroke engagement and our [indiscernible] through key be of very terms we’ve it far. We’ve Ireland, just so of just the some encouraging In a and to panel, which had We’ve made.

power of done is external some we around and large-scale particularly Obviously, square rooms, internally around X of far. on forward on. quotations We roof XX,XXX equivalent, have XX-plus there X-megawatt we’ve really real meters any of so delivered we’ve area. out with tested the we’re it which large-scale that around that’s before of kind And megawatts on roof this. kind pushed There’s engaged

this X.X class Class to actually very at launch underway there, is expect encouraging B this in we QuadCore, similarly. OPTIM-R, A progress stage. soon. will well extremely that’s So Kooltherm,

very will on while lower forward. that four, product a – think embodied a relatively exists body to be composition, lower carbon supply the sources encouraging. a XX% I running we of lower launch leap all really Obviously, carbon and fact up presently. achieved product at a extremely embodied in And viable a technical get to panel, LEC, until I But from is eyes in quarter being which going be encouraging. insulated we’re able the that, limited steel that XX% carbon perspective, to be level carbon it think our properly. QuadCore actually a steel And form, phenomenal we’ve can for will got clear that and on is from for and which side, up commercially achieved achieve will also a really, be is a

that steel. naturally, So low-carbon entail will

our which in the and will in supplying also to PET-based You steel investment green MDI very – over us, expect before our be we the years HX in in of from Bio-based to Nordics, next have levels recycled the few polyol product material core PET-based noted core.

there’s been about market work we’ve the in for and comes ready in and, time. materials talked serious for carbon ourselves So obviously, AlphaCore, getting it this we this. way front body there for will tremendous when be lower and some out to appetite

will scale presence big then a Planet Passionate will green much actually similarly Catriona. small various manufacturing partners. a pipe XXXX. small We’re but product to be Again, there. over technical for been through there a we scale, agenda, back we QX expect to from technologies covered over build and be in to that’s this our in perspective. And to time, And And Logstor. various in It’s project we you our hand significant pretty

Catriona Nicholson

Gene. Thanks,

our Slide that just you’ve the year, targets plan you passionate some this year. already on the passionate some highlights seen report remind and plan to which were detail So implemented the highlights around of of XX, hopefully projects of last

reach to the have. the XXX agenda and expectation this to targets a and implemented reminder, visibly this huge significant across be engagement, business, Just over the year is we projects just is

another it supply the an this example and XXXX of have process we engagements gives with that. So in across exciting and in of level the X% with scale manufacturing I that an the in just carbon is QuadCore our you, reduction of business. idea the chain, ongoing LEC suppose, We of our agenda engagement forecast

XX, the differentiated in we you’ll in – really innovation Slide innovation across we now linked year. examples business, to ISO of the and to So divisional detail On XXX business. XX talk see rolling certified both you the the and And update expect XX in a have how Planet accreditation, product just because across been effort side, see that, much we can An to have on innovation plants Passionate the later slides We that Kingspan. done this product out integrity. is have across to an deck. have by the into and

usual, PCP significant and additional have across to So training clearly, carried Internal fantastic about XX support XX employees so and XXX with bit and and as quality actually that going team the across of a group our a progress into group, second been XXXX. And internal we for audit on that. compliance infrastructure audited of that around the lot external systems compliance by and sites significant personnel registered far talked engagement Over XXX product their already, has training. some the that. on resource compliance out framework testing, in little XXX so on sites and the and officers

around and on to agenda, I’ll then ongoing pass So that progress you.

Gene Murtagh

Catriona. Thanks,

Just briefly And increasing. Slide to we a have certainly internal the you is demand the mission the CapEx over global expansion, hand XX, for before on of we years. number on Geoff last ever been there organic

which region will new are years is one and like up. in on group. five cover – in for of added €XXX to recent at next site around country, production of something of building roof they And are would is campus, or outlined the additions by obviously, most that demand the the XX single about country over be a the XXX,XXX there’s it or the So least that the be campus intention stages there we the XX-hectare And this to X the that six region. technology And early Ukraine, investment in will there an area. which technologies of square working lines at it X are meters million and by a

the much of to you over front progress that now come. real we Geoff, on So, lots to for and it hand more will stuff.

Geoff Doherty

reflects Slide Leverage And million, I’m Group reflects instance. XX.X%, and of last share deal X.XXx debt first the year, versus yet XX in profit up the to during year-on-year, acquisitions versus highlights €X.XX, the to on effective net Gene. the revenue, the our employed, little second. trading capital half between HX earnings on Thanks, just half a the billion, reflects of to year. ahead last net for XX% year deck, of the and up of acquisitions per in versus debt of XX%, return largely not first on and in paying interim. full financial acquisitions some was of half rate. is The guide XX.X%. and dividend geographic the But line business the the points XX% with €XXX We that those that first this CapEx. debt constituents XX is of the up EBITDA. €X.X first of our in are period, down on that that I’ll XX tax XX% with investment and undertaken at points tax under the basis in last annualized. that’s interim declared returns having timing the period, XX.X%, by of effective And in significant year last and year, €XXX an to million dividend to €X.X a come policy come year’s again, of down margin down rate, in about which Trading a is basis mix billion Free flow and guidance the of earnings. of also €X.XXX, in that up, out second. to cash up at of Net XX% I’ll the earnings constituents

the just to margin on on itself. profit next trading and Just page,

the an graphic, the margin over XX per by Panels, the years. our side you’ll left-hand margin basis down XX% of From a see grown the XXXX. the On half, of performance we some has division: compounded recovery on were margin year year. inflation the of versus terms profit of last already the the the points There And with in the Insulation, X in this profile the of highlighted last year. you’ll exceptional of. material first in time, lag than profile annum in the is lower of by last at effect was. half half that first was XX.X%, half perspective, of first of first XX.X% And raw underway trading a see first what since half basis recovery

progressed down Light of months this would year those on X% perspective, the X.X% & Water half have to track the first material with the versus more largely perspective for since X%, Light end. year. from year. margin pretty much in half in about recovery. the last from up the year, a in Air So the lag half in is & margins second we’re storing, half in margin progress first half progressed second of And half a so and believe, & weighted margin – the or of a That couple last business. last trading ought has of to year’s raw year. in the the Energy, of data from at of good half do associated consistent very first with margins a performance year, its at Air year we

be year. So, margin different portfolio a expect of all broadly at group Page in the both bridges half amounts speaking, the profit. which of half of trading On sales XX.X% year, in second that level, XX.X% the and trading at a mix would a the to divisional level may we XX and but to the similar second

So instance. first sales the in dealing with

plus cash a plus up currency, X%; overall at underlying, components profit on plus XX. revenue XX% terms, biggest in currency acquisitions and and and XX% from free XX%. was X%; engine, flow And plus plus headline, with Free plus clearly, acquisitions, a cash underlying, XX%. is is dealt perspective, EBITDA. XX%, that The Page So flow is XX%; the of up of

in year was typically half. because June by €XXX million working the €XXX first the the first than is in of first increased in in seasonally capital million EBITDA the We increase significantly point at December. half. So Working capital a higher half

sales – working end very ratio be. that, higher But capital the at XX it typically notwithstanding would We It’s XX.X% sales had June. than our significant also or of was underlying is growth.

worldwide, for higher in at dislocation chains and carry long-run is bit we than And took the Our utilized reason we level given through the of typically opportunity that to more principal half the the supply the be year. the all others, inventory. typical. XX.X%. disruption of as elevated inventory little average be of a more is will And will move Like naturally levels second

that to So sales basis we the end this ratio expect XXX by working of improve capital financial year. to by points

from half, Beyond statement perspective, €XX tax, that, in cash free at line the first was CapEx €XXX in with a our million income the million. outflow rate,

full for in & principal business, also, that were we the transactions debt Derbigum period, acquisition investment year, €XXX were For And on to €XXX million half the pleased Page XX. million. before the spend this following CapEx significant very on above two Insulation And be was completed acquisition The in financial we’ll just reconciliation of slide, year. during referenced activity in and a our our year-end. earlier. in new touch period net complete Roofing is The Topdek the Waterproofing Gene which were the

the two during principal completed the were they So period. acquisitions

€XX I additional paid €XXX We million of EBITDA, of balance the during at million in arranged period. is XX. We following The some as of the of facilities highlighted Net dividends previously half X.XXx. deferred our the Page outflows minorities and highlighted, strength also had year. debt consideration to sheet debt in on respect

of coupon billion, on X.X and combination at cash profile hand and and €X.XX our committed improve is I key that outlined liquidity page. the largely and that’s healthy the acquisitions annualize. highlighted the And between liquidity of recorded you’ll territories. XX.X% ROCE ROCE long-term June reflecting available of of sales move notes half, measure. we facilities, year healthy in maturity undrawn as balances of just that next reflects of private see the on X.XX%. Page And total a average at end ought across returns through very the any so first to the the And Our fixed as of our by of interest those weighted is placement all the years, finally, timing second XX. by we growth half say, sales is geography the on

half territories to profile, XX% back European with Gene. now of of terms the similar overall that, compared And in to group as In comprise Americas year first I’ll the with outlined of page. XX% the hand on broadly last the the

Gene Murtagh

best Obviously, a some you, go Geoff. you be as take will we Slide to XXXX, as lot is Thank will what the the Q&A. thrown do that contraction. what our through be all near-term And environment we good and of which end direction. of markets we absolute you in end into probably exactly position that just be. to in Many what judge will businesses our will I On will our in think XX, actually or market it’s it will matter It directly better experience degree some can a commit the will of entail. of outlook no will likely is in

more the product to time. crisis, areas – our long we’ve efficient for building unrelenting deal emissions geography, those broader that in energy and pursuit solutions, will obviously, very So setting focus crisis portfolio obviously, of focusing such with, a aside the be other so on all of wider on remains that, and been

in naturally, in think, our I is it over nutshell. exposed structural So very the the short-term, is favorable unpredictability. And a increasingly trends. And businesses is there longer-term, to, that

will we it over So to Nadia, floor the now. hand

Operator

David, go Goodbody. And today you. O’Brien our please ahead. question Thank [Operator from David Instructions] of comes first

open. is line Your

David O’Brien

deck my markets are get more the call, are I’ll handle to statement of the clearly, it’s look, activity. Three, on #XX. maybe seen depth comments, you’ve correction quotation investors just and any do appreciate please, Good and potential the start in challenging to that the on slide taking with which off make trying final I hard solid for and a comment getting And your you morning. Thanks in we’re questions. Gene, seeing.

half the a comment for you And bit So that with color the manage you a potential Nordic And do on also, stake order various on – over have books give supply completed, to markets the in you’re geographically period those a or and segment? in the could mitigate energy you Waterproofing. visible a of what give us they field months Derbigum the Maybe of for you your can us how in maybe could a color watchful transpire? you Ondura, and bit us make of Kingspan to can on as or constraints give maybe second end standing you Europe. winter sense that should of how finally, by those are the Also, telling little you? the outlook, just risks XX% January relate you from you that start

scale footprint opportunity? that for the of going Waterproofing the forward Roofing with and the and or strategy is So platform what established,

Gene Murtagh

next bank. months It is is dealing the our very David, much. We’ve precise on. obviously in any we’re X head of to very Okay. order certainly not with honestly that into difficult seen trying some contraction unpredictable. to kind way in And or thanks be around It just XXXX.

with normal that were we important what I to at stress it’s the to was point we totally And at has point unnaturally year, exactly high. the that’s to bank, this as transpired that think bank probably were think than that case more an I seeing at taken last be pains last this we’re explain that and at they level, And to what less obviously a level, over down up now time. just was year. of eroding unnatural it’s have been time although at it built in

up. to somewhat, down that obviously, sentiment in ago is on issued second X around And imply XX% revenue whole before. did we volume remains trading would X exactly in probably we essence, it update. like going whenever as flagged our the weeks or half, be For and That our front,

a from material it’s it more probably So than was. available raw perspective,

happens movements winter, We deflation. to here just – side a on or front, there. the we’re of the again, taking overreacting what to a depending just degree on where can have that cautious on issue seen well that of crisis we’re And open approach the kind as because turn that during an or any reacting some

handle – two side, One mindful cost it’s own number But and the I flow and of perspective has or From just to We’re then more raw from running we there just cost stuff chemical much does one; into one operations, an own is secondly, related that. perspective, of that. and gas risks. think not? It’s the So the and clearly energy the we’re facilities energy industry. and very material is the our supply is both our a that.

So from we’re our consumptive. own perspective, not energy enormously

fact, extremely end yourself, might reasonably and be we’re And bigger then you confident been the X than months on And X we’d being we’re not us low the of energy. a have weeks In feel interrupted. of last looking of maybe front, consumers that to that the things, that steps been lot on that indicators would of at more over would number all info we have that ago. have would taken the or comfortable honest, it leave be and

And unpredictable. we’ve does still from Waterproofing and at now. It’s a naturally as you rightly ourselves small side, got It’s then that European point obviously out, a substance got Roofing remain Although focused very and established. share.

see being as organic use And long-term, pull-through pretty from potential primary the acquisition insulation. this to as is totally an perspective. here we and the for infrastructure always, dramatic for both global So that agenda

to to create specification that’s to are. it’s more delighted for is building be going to happen But X, an outer the that be So high-performance demand overnight. we’re insulation. And drive exciting to of going It’s to envelope and the it’s XX, use nothing a prospect, where a we XX-year program.

David O’Brien

Gene. Thanks, Great.

Operator

from Thank you. of Lehmann please of go America. Arnaud question And ahead. the comes Arnaud, next Bank

Your line is open.

Arnaud Lehmann

Good much. very morning. or on side. three you Thank Two my

and adjust? new down. Firstly, Are to that believe you in logistics guess may, a verticals. similar starting lastly, down. panels? a to That’s obviously, to when to space contribute you improving your lower Have prices prices maybe But side, selling prices I potential to different. around your of historically, mind I what slowdown adjust related waiting does think on to you’ve up them guess some the discussion imply this chemical I extent for come Waterproofing. to side to fair coming that planning cycle from started down, And sort commodities wait-and-see does if be I margins demand on And know the And warehouses There is your a lot situation slowdown? margins? you I bit in color some steel of were which coming seen division, prices have the enough. your in probably staying this set were just And the should your context, experienced customers, of you’re slightly Roofing giving or distribution. more I online and on would

there be any both probably appreciate dealing are with roof. I products, links & there Air? different Light but with are the Although would they

was or any different to you. sense? Air it’s Roofing So to just idea there & Waterproofing and Thank in Light include too make

Gene Murtagh

Yes.

thank Okay, much. you Arnaud, very

in business we’re chemical Steel be actually primary materials. Excuse the worldwide. like raw the stonewall be the will me. we’ve the third, the three And largest and panels where on various material inputs is consumer of raw of would it Just our got insulated side, largest types second.

and So there on steel has rightly on some movement point you as been chemical. out,

as like. All sustained, cautious else further, turn Now it’s and but movements order can our in go may on prices that as all well, it seen because And be be, could as to our we’ve probably been will before, to bank selling equal, if how sustained being know. own quickly. it approach related don’t we’ve you we that result, a

pricing evaporated quickly. shock demand’s basis it’s So get you the cautious not very could give fundamentally raw materials said, on been the anything We’ve as our like that, to or on like I very that. that a

of warehousing the if insulated kind drive half strong. deciding we’re although of XX% significant business. So run-up to order in then XX% in what and the sales it’s – the volume you and direction freed actually part bank is moment. solid. where it the probably weeks pricing a tight That’s a perspective, of reasonably seen and little, release of a like, the that panel the our It’s a verticals area big particular supply at a kind up X of was a And that our we’ve more logistics mineral to is X And From worldwide. the around in in last quite demand fiber year. on is to represents or going

You’ll areas of an have everything to Amazon, approach actually cutting few on general where felt maybe yourself, What well, months maybe is drift cutting fundamentally in have it resumption a seen radical to as noted that. of us are we kind And a of their was back less just we’ve we some approach example, continued. the ago. – wouldn’t seeing and a just construction

in looks part our X-month there So fact. I UK program X-month, in areas, particular, remains from quite and and on logistics of both of solutions warehousing the very those. from is in which big a side very panel the would data say, obviously, strong, in and other side, encouraging, kind the And flooring data

program bank segment And the that project will ever that – Waterproofing of tracking part project is that the and omitted much most and daylighting the well much that, actually very sorry, very in a bank solutions automotive we’re Air fact, there stronger. that’s the then, roof. through in as I Light is pull on as increasing, because our side, and from are, & side, bank – we’re be the where becoming the Roofing to position yes, the and group On order actually,

able waterproofing, it’s be and the side. to spec combination through team be So driven that the will of daylighting that waterproofing on precisely insulation

action. a that’s yes, of So key part

Arnaud Lehmann

the color. That’s excellent. for you Thank

Operator

Thank question please Yves, BNP of go Bromehead the Paribas. you. from ahead. comes And Yves next

line is open. Your

Yves Bromehead

consolidated maybe morning. can. your is first And of one Thank to quotes are of expanding the quotation Europe on the is and any if an the comment a you. back time. capacity my potential the have level, Or for on packages? us small with between time on much towards especially the how that number to clearly Waterproofing targets the increase heating three, seems? of acquisition district I color Can Also, as on activity. U.S. possible? too one. but at as What’s M&A now. does And side. long and in time you for question. do not least, volumes there packages. My any lock have last regarding I’ll Question color out district the you strong terms stimulus family-owned just success those Good the just your And you if a sort in give remember what’s the the of That’s Firestone of you your how Germany few we that I into is factories? all just and going taking of too translate then are into it there? order? conversion Thank do businesses tried two segment. need appreciate at question heating. U.S.A. coming is the it that you’ve Are reference that And frame in other regions Roofing with number

Gene Murtagh

Yves. Okay.

side, this in Typically, bank, quotations actually between a X-month experience. reasonably not the our quotation there is majority said, gap and the as about quotation probably is of the is been On And we that’s vast solid markets, period. activity generally typically. typical

it and varies product obviously, somewhat by market. So

In terms our X difficult can degree rate months, in the say. we and it’s to that to next success just of what convert will actually say

is is, XXXX further next now. As less it obviously, away normally what than predictable. before, And we’ve is or like year said feels it’s it

district example initiatives, From of except So quote we a one solid our be kind is earlier of those convert. perspective terms utmost German in to any the of new about can’t, do in by so to talked way, continue we in precise or and that, on. way we heating

program. that’s scale, time of X-year terms in a So

very projects itself €X years something EU by by Germany It’s X-year like XX not specific that’s aspirational. matched period. country. XX to one or billion or the it’s a in And specific, or be So contributed

on So capacity. our going to place naturally, pressure that’s

Our intention target. a Waterproofing from increased it U.S.A. few now have bringing sale, We from opportunity for expensive let’s are owned which XXX%. means years obviously missed go perspective, businesses, of And is from by opportunities. too that. is see bit together patience we ago, there, There to and privately increase Roofing lots by to we’ve capacity deliver to by to a fine projects have where And place a multiple. in a but got X little then if the And do year year of smaller well, very XX% but next Kingspan collection now a mile. and for terms that the was out in on kind there of other to of yes, we that. was And the put a Firestone

Yves Bromehead

Thank Perfect. much. very you

Operator

Yuri, comes next please ahead. of question Serov the Yuri go from And you. Redburn. Thank

is open. line Your

Yuri Serov

a if will them one, mind. Hi. I don’t looking I’m questions. just have ask margins, few I at Yes, one by you the on margins.

think X Your you down as by give you year expectation full statements is previously an update Can and you’re first for bps, margin margin. to in I what thinking some is the about the your now? what just made half

Geoff Doherty

assess the absolutely, half. first this of the we would Yuri. group similar XX.X%. best point, at margin XX.X% Yes, a in second I And a at expect Yes, as as can level that about half in

So margin group. in that be for the year our should full XX.X% zone

Yuri Serov

helpful. That’s Okay.

yes, saying, year XX.X, yes? full So

Geoff Doherty

XX.X%. Yes. year, Full

Yuri Serov

Insulation. on specifically more then And

lowest the of enough. long very Well, lower Insulation year high against look quite was history. margin half You before, which say a ‘XX, quite is if a this is but first your But which was at this low. it history, in on I margin the the in is fair year, last it’s

segment, So particularly? for what’s your expectation that

Geoff Doherty

did Yes. in is the That in recovery well Well, lag raw margin recovery think of inflation. a see the the I performance first effort underway. half, now material we

be the half, will expect I year, in of the half in XX% second the reflecting recovery. would that So insulation margin the north second of

Yuri Serov

That’s helpful. Okay.

have Speaking just you and don’t mean, I about volumes, I but said. don’t I what data, full reading know. actually have the

Looking the installation funnel. at

end, volumes sounds backlog by a the stunning to at which down X%, the XX%. the not? collapse quarter. end me that – of in March, And like true Is or half the So were in your seems order second up was full first

Gene Murtagh

will way that completely be to characterize No, inappropriate it.

down. absolutely tried that’s as say of half couple first We’ve which think is black have And of crystal spelled that the for in way on at time clear we can And try panic kind and easier there been months are, try although I order of like hard materials, is last order down. on was now. this, of But intake been earlier time that was we explain it. which, on, been can because and we’ve crisis, expansion very of this than articulate some was – And think higher we as is there our that, and on it’s panic it it’s missed I in is which have bring precisely simply to to year case only a time is what our about as way out an we’ve is the about because is it again, gyrations a that we’ve whole explain there And it this But too difficult, never there corresponding trending seen Like intake you normality. our XXXX the in But we’ve all statement way tried unnatural. ago, driven. of to a stuff you that. this form our last explain, white. question was a in year, It trends to to you there is it To only I like stunning That’s reduction XXXX, difficult back it what like, been currently, of far feeding can from on the half in cautious – the same. interpret. of is about to said, pricing, even obviously, this to be any the of you But sorts our perspective, experience. which too your with from kind pricing. no drop early. we drop And that that’s is pattern if prices is is That’s day. honest itself. trend prices a There panic late.

Geoff Doherty

But September the of point. never point context on versus XX% light material was kind been might think the year. highlighted other bank ‘XX I ahead towards Yes. years over couple give And order previous raw uniform it, And moves years. the the of accentuated year, the of in That’s been further you of volume just our that from to that’s factors. Yuri, end a in we to year, last you order comparison of at the bank, recall over many case and of September is end last that last

because print sales Now any way. growth magnitude the of order us seen in into uneven bank that period in volume of you flows the in order haven’t since period an

So context. help with the to last an can full period of way this year. she extended first steady year that the full it point profile year order as the in is understanding Gene half has is goes we best And over it’s which the outlined, as out versus time,

Yuri Serov

listen, length understand of the actually bank look, that. prolonged. order Yes, no, is I bank XX%, the order is If significantly the up

using up go the may volumes That’s going it’s saying result, the actually to percentage. respect your don’t at what Is by again. just But up you actually that that your that sense you So activity clear. a is I that why doesn’t too I push But the that pricing cautious, interesting because said. to bit? mean, the prices that people is prices what I right are you given jump actually the think when you’re means word say as pressure material that you’re in pricing not a volume your activity. much. they get Usually in to drop am willing it inflation there of a cost to time – up have think cautious –

Gene Murtagh

Yes, absolutely.

I – because again. It’s am it up not think go we right. entirely cautious not we will saying are that’s So,

supply know are And do. recent to obviously volatile on a in what period because been cautious it’s We it’s we going don’t years.

I out So, simple try for and being, where it’s to that like see prices that’s yes, we as the a would very on works caution rather thing down see time the defend we – supply go. do. side the It’s – hence, it and And then moving front. said, how is

Catriona Nicholson

e-mail I have any an further the just to give question, can are on you Yuri, ask to everyone person. And questions. to move think, chance we send to I me if next going the think a you

Yuri Serov

Okay. one? Can ask I last just one

Catriona Nicholson

Okay. Go with it.

Yuri Serov

whole? give the chemicals. giving Can you in what On steel previously to side, as a you of and expecting grow guidance for us some us as a you cost cost you year-on-year expect sense are the this were year how to much

Gene Murtagh

sense. That’s commercially No. too

Yuri Serov

I Okay. understand.

technical new are one Just thinking Technical you one. mean make thing, segment if – I insulation, quicker it’s waterproofing not into insulation well? but in you segment, question as a about new you

Gene Murtagh

is, umbrella under insulation clearly the it of generally. but it’s Well,

all category, But we technical expect have substantially. like yes, will to it is and home. one a absolutely, So, under as building insulation insulation we grow

Yuri Serov

to But you planning out? separate are not it

Gene Murtagh

No.

Catriona Nicholson

Thank you.

Operator

go you. of Gregor, the question And Thank next comes UBS. ahead. Kuglitsch please Gregor from

line Your open. is

Gregor Kuglitsch

morning. Good Hi.

So, I got if a questions, few have I may.

for remember, margins you think I – the I that the And know what a so that’s or day. us insulation I in a you I what is better your think give least and you Can giving still you see sort you therefore, price Roofing the do on membrane, system – segment, of that think unwinds plan kind you and Do the get like XX% if quantified insulation, successful think kind then system and order and model? you system very never can’t back guess what and the have that of have of million the you guarantee and So, are with you to comments replicate cost Is been have basically so are think one give of just on of water sell I the warranty, kind margin? the maybe to really you was I to intake, XX%. that roofing level, kind system, can, give roofing sort of XX%, sort an that update case? here, don’t I the of previously – – it year. seasonality. we a that business on perhaps a at I is of if €XX please, Coming I price Waterproofing trying appreciate the I mean bundling in better U.S., that, full

in MDI to final comes event planning year have of so or you. shortage then looking pressure would last meaningful I you and there kind isn’t let’s really much the question. contingency intake, full Do in of countries a Thank in And under any say year? seasonality order maybe So, statement don’t the say, of that the years Germany? that’s of know, a production of you therefore, back, XX% that gas, X like kind

Geoff Doherty

that question Just €XX inflation. a million from exceptional first perspective Gregor, in instance. year to with beyond thereabouts was and there deal of there indicate margin the the the year did was that recovery or or of an last margin We level

explaining takes the XX.X%, that, year’s You flowed and our has factors one which guidance as year-on-year. back why is this that can mix margin well of year this is markets the about take it as that end naturally through account business to of

Gene Murtagh

And – absolutely Gregor, your are on right. just you

U.S. so house insulation try moving That’s much of package ownership. bundle gradually the very to model in model that roofer very comes successful as that a for both and perspective perspective under for from or in and the and a the It’s firm in terms with source go, been way our in establish not generally and of waterproofing very a to a ambition roofing direction, less a things is installation been roof. where a on. has been that same customer because, a one from Europe. single the from type So, well the in it’s sensible warranty, a developed speaking, the full approach warranty corresponding It’s have Europe absolutely the

much happen not with travel it’s overnight, direction of As something it’s the will I that but said, very us.

anything will roofing exists be across much unique what be offering that will our already. think substantial is time I than over more

installation obviously we else has. So, nobody the membrane. will have of have that will a obviously We portfolio

daylighting, have deck, on largest structural to of which supporting in metal we roof system going the the beyond We producer are that actually has. manufacture as nobody goes we which And which of well. actually that, – else all is a

much for a bundle there well. to as get time wider potentially at So, is us over

versus the terms In half, that over first XX% meaningful stat of is. second difference and what is how in seasonality, time, time over yes. little terms half, very there honestly, Like it be of would

But So, down, going no about it the we to is meaningful been half question, that. is be sense. there in that have second clear is and

as clear been about in well. have past We the that

Gregor Kuglitsch

contingency? MDI, you any have if

Gene Murtagh

straightforward. goes MDI on substituted possible for easily material, a in not It’s Sorry, as us. MDI, Well, not particularly that’s down. on not MDI.

cores. we obviously, have got So, different

MDI we have naturally we opportunity from with a phenolic, terms perspective significant styrene, have actually of in down We board But there. any portion no, PIR in of could But as be quite panel, bigger or all in alternative probably because exposed way much and be be could got comes about, of either would a board. problems will if source. down won’t honest, have which reliant think – the gas a some there it’s gas, take to materials everyone to energy because on

transpire. does bigger to if it will So, a honest, be be catastrophe that

Gregor Kuglitsch

Appreciate Thank it. you.

Operator

Thank you.

next of Flora, Our go Flora from question please Davy. ahead. comes O’Donoghue

Your is open. line

Flora O’Donoghue

morning I it alright. keep Thank you if Good much. will two, everyone. to that’s very

is one for Geoff. First

we could and Just on steer incremental we pro from maybe contribution HX a forma the And next for a year the wondering kind second basis of if get then on the well. quick could maybe have for M&A as theme. on one, updates of you. warranty that a on in governance, just just we patterns, there, If maybe kind Thank if appreciated. etcetera, could touch maybe update would that whole any be

Geoff Doherty

that €XX comes no regard. in into of last have between Flora. into December, versus warranties, had the about to have €XX change the should year. M&A, broadly won’t we €XXX of And that’s approximately just in the the ought Thanks €XXX in million that second didn’t no revenues And this that of as half year, so Ondura translate XXXX million on we second particular On then of and that half this that rollover profitability would we be year. incremental update have ‘XX broadly to assumption in half, the million we that Yes, a and the September. with million second material in of year. expected sales completes in profit trading broadly And of June

Flora O’Donoghue

great. That’s Geoff. Thanks

Geoff Doherty

Thank you.

Operator

please you. The Patki Thank of next question JPMorgan. Rajesh, Rajesh from go comes ahead.

Your is open. line

Rajesh Patki

two have well. Good you. got I Thank Yes. morning as everyone.

intake? First question related the Can panels you pricing to consistent the comment pricing commented of or Has the that the your you on one the your exposure, on first I are pricing up volumes. of on easing the has have revenues to inflation? on around was in half. to on the business. And second you comments the RMI order seeing XX% which It think increased within eased half. sort so in is XX% first the is

to what’s normalized acquisitions, of the where do level? the ambition the see And group of in recent exposure Following Thank a you you. RMI? that on terms

Gene Murtagh

yes, – of pricing the intake. patterns order terms in Just on

easing which So, our very over is pricing which significant yes, as of through somewhat course year, result well. you is you is stuck stable, last price of which inflation, rightly would actually have pointed the expect. Right pushed although what actually now, naturally, the very reasonably out, increases

So, as we And be of release and few just any cautious And our we said times, – on kind that of that’s that. a approach we and handbrake judge you the adjusting will market what are we doing that’s our exactly ongoing. that’s assured necessary. can – approach this we our to pretty are all to just shares along our agile as go whenever rest we can bank in and And there.

but somewhat easing naturally. So, stable

Rajesh Patki

pricing on The year-on-year? year-on-year? Sorry,

Gene Murtagh

saying, am stable. it’s I That’s

Geoff Doherty

Yes.

the… yes, think I is – stable

Gene Murtagh

but Stable, easing back.

Geoff Doherty

Yes.

Gene Murtagh

ambition, that rightly be to limit pointed and our acquisition as we but Near-term, terms honest, time. you the ambition, hitting or business both no we of on the And run in our organic dimension then have to out, the And expect over RMI of XX% RMI XX% be would increase around should through of XX%-plus. rate. on

Rajesh Patki

That’s great. much. Thank very you

Catriona Nicholson

you. Thank

Operator

of go comes Yassine Yassine, next Research. from our Field And Touahri Investment please ahead. question you. Thank On

Your open. line is

Yassine Touahri

Yes. much Good Thank my morning ladies question. very and for taking you gentlemen.

how to Firstly, question. are in be have take? some division? Board acquire if the minority and conflict and in want roofing in you And manage your could will volume that you observed of point question, my reporting the just And you Waterproofing, Nordic Waterproofing give potential strategy volume one light Could color have waterproofing that how view, manage you first That Will tell of you confirm far being on expecting what looking stake so this you are a suggesting can Kingspan level would merged you second and to you same you be decline are question, down of assets? us July a Then interest HX. on and position? and to get last you us Nordic from August? will air in

Geoff Doherty

growth question first. sales with Yes, just to deal the

that versus second half As XX% this our we have at best the about in revenue of outlined grow point by sense will last earlier, underlying the year. is sales year HX

in implies In so increases the price is XX%, material in more recovering bit naturally terms some a of account than half implement the which pricing inflation, price consequence of raw year, second of a reflects that little so. that the of softness we the have takes split, as volume volume had year-on-year to

Yassine Touahri

fair the July in maybe is too down it and or it volumes pessimistic? to assume Is mid-single like that fair like down volumes August, is to were – or the low-single that it were digits assume digits

Geoff Doherty

day, would Yes, the X% that volume XX% be a and a of it. any impact. to earlier, region But outlined shape can in that like kind as price of general take we Gene position on has on

best those – directional. So, the are best steers

Gene Murtagh

stake. your position a it’s on we not have Yassine, then XX% Obviously, point minority Waterproofing, influence. so And about Nordic Okay. of

of have on the intention going We no Board.

to over fully it’s business. do team So, their to that

terms and a those too any From handling have It’s competing and actually roofing air, actually for long. business investment waterproofing, light it the Kingspan – we future. in won’t would would the it’s of So, foreseeable an with we them. conflicts, and merge won’t and name because be

product beyond the at goes So, roofing opportunity actually, applications. term offering And more and seriously, light not likely longer it’s and the air that’s all. way

air covers an whatsoever. perspective, avenue to of ventilation And be But that’s explored So, equally obviously independently light and and it is air daylighting business, nothing significant. nearly the is there walls. with in It’s solutions. some overlap clear different and a totally is opportunity roofing going that the from

separate very much will remain they organizations. So,

Yassine Touahri

waterproofing in So, is waterproofing, division will you and roofing? create new which a

Gene Murtagh

It’s done.

Geoff Doherty

Yes.

year, division for For be likely, have year Ondura separate half of year as a it and because will this out a period piece, all we this year for year’s full Derbigum. the is months more insulation in it three break next but stone we

insulation So, ‘XX. for and it then will separately under out break sit

Gene Murtagh

It’s do a completely independent to business. with either. Nothing

Yassine Touahri

very much. you Thank

Operator

the Rajesh [ph] Sai from of question Rajesh, Citi. go And ahead. next comes please you. Thank

is line open. Your

Unidentified Analyst

morning Good everyone. you. Thank

first is margin. So, one on EBIT

I are there. and X% connecting for please You if of recollect, versus being expecting insulation XX% in But HX. second comments and north you similar air, year said a outcome your light me about the the or half, correct full

decline the are coming, you an say that that related we little giving one update Any the So, don’t a them In second know. helpful. business flooding. up regarding change solution. full to did the And – implies really price on what’s expecting think little with the that panel kind with that you ahead is discussion from you of are But more bit do find you are to fully would be in given margin. And in year, that, and there. amicable earlier you side that’s the because a government

Geoff Doherty

Yes.

been a any regards the on margin group in and provisions of just in no half. front, half a XX.X%. insulated at that, of given second it associated activities, that imply and is the And slippage versus there in the the specific of But around the But cladding margin December. first the the our as context. in Just movement bit the round, mix consequence little – panels of question as XX.X% around June terms from about level, has the we the issues as XX.X% in business in does profile the the of can be

meaning the So, last in we we in were year. have that out terms on versus when update nothing of any earlier of

Gene Murtagh

we dealing with of this. are But all

We so are doing in course. just best far our the normal

Unidentified Analyst

the And that any discussion. were house Okay. you the of Is part update around that, to just and builders, we some on of there of kind issues with it? specific had kind

Gene Murtagh

what? to Specific

Catriona Nicholson

will No update. that. Thanks update. I Rajesh. take No

Unidentified Analyst

Understood.

you. Thank Okay.

Operator

Your of Morgan last the line please ahead is question go Cedar, from and the Thank you. open. Stanley. Cedar And next Ekblom – comes

Cedar Ekblom

much A very Thanks guys. of couple questions.

last appreciating see of that you July, in was at us So, if number volatility that at the down lots where year. May, that told end you backlog of you end wonder your of the X%. share saw that backlog we would I the

price not sort of to Secondly, pricing, try your margin? source making And that how if the of the or there, MDI your is were slows? do am pricing, this Just and sort some on you the to pricing much production have sort and you that, in then is cut are customers that comment the the you Germany? on source to flexibility of to order an inflow being really expect just at areas it cautious moment. of then extent comments other And is how understand psyche do you case from you a lowering what of volumes? the I case much that of Thank you that your to you. moving see from understanding defend

Gene Murtagh

start with bit. last the will I Yes.

only in It’s obviously etcetera. is terms about there commercially can we so So, much of sensitive, talk pricing.

really very So, it’s straightforward.

some give-up raw in had have We materials.

MO that in experience, Our to been back. most always relaxed be quite my times, Of flow has around letting this unpredictable. is all the

materials be the turn and could be. could It is go to materials up. down, go I could way clue a actually, what got either. So, way outturn And going haven’t

in have are up So, And and volume. it’s easiest we that’s a drop things face naturally, cautious in that, the as in we just the achieved. terms few times, the pick those thing And very the to of of two being world are price is been protecting linked. all said the

give running But that’s is around and and on the if bank. of that But that – face if I like, can short-term be in result order very morning. obviously of of price the So, there, what that’s you strategy order some are intake we what the tomorrow in hastily conscious like, unpredictability. turned – the say. The won’t margin protecting is would we be you getting a

more, flow product A of comes by our country MDI, our of is terms the but from way, of from from from approximately XX% German around itself. Germany the global sourced itself, lot In companies, material XX% there.

Geoff Doherty

it have will somewhere Yes. think have for previous does given and decline the half revenue the of guidance I of sales the But dealt Naturally, to volumes that’s… extensively year, mean in second XX% backlog, year. between we in half that with that imply the X% regards questions. second as the we given yes, I that

Gene Murtagh

on A long way go to that.

Geoff Doherty

go to that. There on a long way is

Cedar Ekblom

Okay.

give that. X% confirm number the to was Just you May? backlog, the on So, minus won’t if it us in

Gene Murtagh

have last year. end with as was to plus-XX where is the see the to honest, explain is now be it as where tried let’s announced like in it since year No, since announce and we at of the

Cedar Ekblom

Thank Fantastic. much. so you

Catriona Nicholson

Thank you.

Operator

the go Kuber Thank please question Numis [ph]. of Jonny final Jonny, ahead. comes you. And from

is line open. Your

Unidentified Analyst

very Good for morning. taking my much question. Thanks

please. two, Just

could market. be panels market share where Firstly, your if of I European insulated give of is us grateful an you would you update expect

get update the strong from to then in Given EBIT a to would secondly, years, expect price we grateful you what there. in And be drop-through thoughts X% the keen to to be past I seen decline the an hear your have few volumes. on would

answer a but would much appreciated. expect Thanks. pretty be that I very it depends, the insulated Now, figure panel, ballpark within

Gene Murtagh

think Yes, one Like operating precise bit one, on Jonny, just in anything first X% But to but of – revenue, not it’s a the number give you naturally, reduction And overall around are on be on when share. out the a XX% an leverage sensitive obviously there. large market it’s it’s probably from we little market. perspective. given particularly

Unidentified Analyst

Thanks very much.

Gene Murtagh

And two that other up, You’re I speaking next week a to lot we think weeks. over will be all sure, each and participating. the welcome. And thank or for all closes for you

Catriona Nicholson

you. Thank

Geoff Doherty

you. Thank

Kingspan (KGSPF) 19 Aug 222022 Q2 Earnings call transcript