1. H1/Q2 2018
Financial
Results

2. Forward-looking statement
The statements on the future in this presentation, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors influencing the activities of the Group, e.g. the global economic environment, including interest and exchange rate developments, the raw material situation, production and distribution-related issues, breach of contract or unexpected termination of contract, price reductions due to market-driven price reductions, market acceptance of new products, launches of competitive products and other unforeseen factors.
In no event shall ROCKWOOL International A/S be liable for any direct, indirect or consequential damages or any other damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other action, arising out of or in connection with the use of information in this presentation.

3. EUR 1,270 million up 13.5% in reported figures
Highlights H1
Sales of
EUR 1,270 million up 13.5% in reported figures
EBIT of
EUR 161 million up 47% over last year
Free cash flow of
EUR 28 million up from EUR 13 million last year
Sales increase in local currencies
16.9%
EBIT margin of
12.7% up 2.9 percentage points
Net profit
EUR 123 million improvement of EUR 44 million
Incl. 3% from Flumroc

4. EUR 667 million up 14.1% in reported figures
Highlights Q2
Sales of
EUR 667 million up 14.1% in reported figures
EBIT of
EUR 91 million up 43% over last year
Free cash flow of
EUR 62 million at level with last year
Sales increase in local currencies
17.3%
EBIT margin of
13.6% up 2.7 percentage points
Net profit
EUR 69 million improvement of EUR 22 million
Incl. 3.4% from Flumroc

5. H1 sales growth of 16.9%
NET SALES EURm
Sales grew 16.9% in local currencies including Flumroc, and reached EUR 1,270 million.
Sales increased 13.5% in reported figures with a negative currency effect of 3.4 percentage points and 3.2% net sales from Flumroc.
The increase in sales has been driven by improved market conditions and an increased demand for non- combustible insulation products.
Insulation up 21.0% in local currencies, and 17.7% in reported figures, owing mainly to the building insulation segment across Europe and North America.
Systems sales up 4.5% in local currencies and 1.0% in reported figures.
NET SALES PER BUSINESS AREA EURm

6. Q2 sales growth of 17.3%
NET SALES EURm
Sales grew 17.3% in local currencies including 3.4% from Flumroc.
Sales increased 14.1% in reported figures with a negative currency effect of 3.2 percentage points.
Insulation up 21.3% in local currencies, and 18.1% in reported figures.
Systems sales up 4.9% in local currencies and 2.0% in reported figures, with modest improvement from the previous quarter as Rockfon started to deliver higher growth.
NET SALES PER BUSINESS AREA EURm

7. 21.1% 17.9% 7.1% Regional developments Q2 Western Europe
Growth in local currencies
Key developments
Share of Sales
Western Europe
21.1%
20.2% incl. FX effect
CEE incl. Russia
17.9%
11.0% incl. FX effect
North America, Asia and others
7.1%
2.4% incl. FX effect
Growth in all key markets
Especially Germany, France and UK performing well
6.1% from Flumroc
Small negative currency effect of 0.9%
60%
Positive sales growth in Russia
Double-digit growth in most significant markets, with Poland as a significant driver
Negative currency effect of 6.9%
19%
Double digit growth in North America
South East Asia back to good growth compared to last year
Negative currency effect of 4.7%
21%

8. Profitability EBITDA up 28% to EUR 132 million in Q2 2018
Q2 EBITDA margin of 19.9%, mainly due to better contribution margin from higher sales prices, which together with good factory performance has more than offset the pressure from input costs and a negative impact from product mix.
EBIT up 43%, reaching EUR 91 million in Q2 2018
Corresponding to an 13.6% EBIT margin, an increase of 2.7 percentage points.
EBIT in 1H 2018 increased 47%, to EUR 161 million

9. Strong improvement in Insulation
EBIT
EURm
Insulation EBIT increased 65% to EUR 71 million in Q2 2018
EBIT margin improved 3.8 percentage points to 12.5%.
Most markets contributed positively.
Systems EBIT decreased 2.1% to EUR 20 million in Q2 2018
EBIT margin 13.9%, which is 0.6 percentage points lower than the same period in 2017.
A good improvement from last quarter.
Quarterly EBIT margin gap reduced compared to Q1
Better Systems performance
EBIT-MARGIN
(%)

10. Free Cash Flow
Cash flow from operations before financial items and tax was EUR 147 million in H1 2018, which is EUR 44 million higher than same period last year, mainly from higher EBIT and net working capital.
NWC increased to 11.6% (LY: 10.6%) of net sales, increasing from EUR 241 million in H to EUR 292 million in H mainly from larger inventory in preparation for the autumn sales.
Free cash flow in H increased by EUR 14 million and reached EUR 28 million compared to last year, while it reached EUR 62 million in Q similar to last year due to increasing investments
ROCKWOOL is net debt free with a net cash position end of H1 of EUR 202 million, an improvement of EUR 117 million.
FREE CASH FLOW
EURm

11. Investment activities
Investments totaled EUR 89 million in first half of (LY: EUR 63 million)
Capacity investment mainly in the factory project in West Virginia and an upgrade of one of the factories in Poland.
Investments in 1H was partly offset by sales of listed securities in Flumroc amounting to EUR 17 million.
INVESTMENTS EURm

12. New manufacturing facilities and major expansions
To support future growth, we are investing in our manufacturing facilities – both new build and upgrades/expansions of existing facilities.
Capacity location
Programme
Timing
Wales
Extension + logistics
2019
Poland
Extension
Romania
Green field
Germany
2020
USA *)
*) We are facing some local resistance to the new plant in the US – we take this seriously and respond with facts and transparency.
Main message: We have a lot of activities in the factories to increase capacity - and everything is running well!

13. Outlook for 2018

14. 1. Sales 2. EBIT 3. INVESTMENT Guidance 2018 upgraded
Net sales are expected to show positive growth of 13-15% in local currencies* (as announced on 13 August 2018).
The EBIT margin is expected to reach around 13%.
2. EBIT
Investment expenditure excluding acquisitions is expected to be around EUR 260 million.
3. INVESTMENT
* Including around 2-3 percent from Flumroc

15. Key figures for the Group
EURm
Q2 2018
Q2 2017
YoY (%)
H1 2018
H1 2017
FY 2017
Income statement
Net Sales
667
584
14.1%
1,270
1,118
13.5%
2,374
EBITDA
132
103
28.2%
244
189
29.0%
417
EBIT 91 64
42.7%
161
110
46.9%
258
Profit before tax 86 63
37.3%
155
106
45.4%
275
Profit for the period 69 47
48.0%
123 79
56.1%
214
Balance sheet
Total Assets
2,232
1,984
12.5%
2,164
Equity
1,732
1,533
13.0%
1,685
Equity ratio
77.4%
77.3%
0.1pp
77.5%

16. Questions? 16

17. ROCKWOOL International A/S
Hovedgaden 584 DK-2640 Hedehusene Denmark CVR No Tel: