Solid commercial performance in a highly inflationary environment

2022 First Quarter Report
for ROCKWOOL A/S
Liberation no. 5 – 2022
at Nasdaq Copenhagen

May 18, 2022

Solid commercial performance in a highly inflationary environment

Strong points

  • Sales in the first quarter of 2022 reached €924 million, an increase of 36% in local currencies and 38% in reported figures compared to last year, driven by strong volume demand and the necessary increases in selling price.
  • EBITDA for the first quarter of 2022 reached €155 million, an increase of €16 million or 12% compared to the first quarter of 2021. EBITDA margin was 16.8%, down 3 .9 percentage points compared to last year. As expected, high increases in production materials and energy costs were not fully offset by selling price increases and cost reduction measures during the quarter.
  • EBIT increased by 14% to EUR102m in the first quarter of 2022, with an EBIT margin of 11.0%, down 2.3 percentage points compared to the first quarter of 2021.
  • Investments excluding acquisitions reached 70 MEUR in the first quarter of 2022, a decrease of 12 MEUR compared to Q1 2021.
  • The annualized return on invested capital reached 18% compared to 17% in the first quarter of 2021.
  • Following the terrible war in Ukraine, all investments in Russia were canceled. ROCKWOOL in Russia is a stand-alone operation and continues to operate to avoid nationalization of our assets and loss of unique intellectual property.

Outlook 2022

  • Net sales growth of 20-25% in local currencies.
  • EBIT margin around 13%.
  • Level of investment around 425 MEUR excluding acquisitions.

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

“Strong demand and selling price increases have resulted in double-digit revenue growth across nearly all business units. Although not materially affecting sales performance at this stage, the war in Ukraine and the difficult geopolitical situation are contributing to an already tight global economy.Even with the price increases, soaring energy, material and logistics costs diluted margins in the first quarter.This will necessitate further price increases across all businesses. We expect to restore margins in the coming quarters.”

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

Earnings call:
ROCKWOOL Group will host an earnings conference call on May 19, 2022 at 11:00 a.m. CEST. The results call will be streamed live at www.rockwool.com/group/

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