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2021 in Review

The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results. Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement.
 
We continue to drive expansion through acquisition, with over half a billion euro invested in buying new businesses during the year. This was complemented by our organic growth activity as we opened 5 new manufacturing facilities or production lines this year, and plan for a further 25 over the next four years. Since year end we have committed a further €800m on three transactions, subject to customary approval, that create exciting new global platforms for further development.  
 
We have made good progress on our Planet Passionate targets, achieving an absolute reduction in Scope 1 and 2 GHG emissions for the second year of the programme, with a 4.3% reduction achieved this year. We will also implement a €70 per tonne internal carbon charge from 2023 to accelerate the pace of decarbonisation across our global business.
 
Despite a slower fourth quarter, with a large order backlog we are cautiously optimistic about the outlook for this year, whilst mindful of the high bar in comparison with last year’s performance. High energy costs and supply threats around the world are a catalyst for a focus on conservation measures, which is likely to accelerate the demand for lower energy solutions which we believe will be supportive of demand for our products.


Gene M. Murtagh, Chief Executive Officer, Kingspan Group PLC

2021 in a Nutshell

Products

65% Insulated Panels
18% Insulation Boards
9% Light & Air
4% Data & Flooring Technology
4% Water & Energy

Drivers

85% Energy Efficiency & Conversion
15% Other

Geography

50% Western & Southern Europe
25% Central & Northern Europe
20% Americas
5% ROW

Sectors

70% Commercial & Industrial
21% Residential
9% Office & Data

End Market

77% New Build
23% Refurbishment

Channel

64% Direct
36% Via Distribution


Financial & Operational Highlights

+42%


€6.5bn

Revenue

+42%


€893.2m

EBITDA

+49%


€755m

Trading Profit*

19.5%


+110bps

ROCE

*Operating profit before amortisation of intangibles and non trading items

Financial Highlights
Operational Highlights
Five Year Financial Summary
  • Revenue up 42% to €6.5bn, (pre-currency, up 42%).
  • Trading profit up 49% to €755m, (pre-currency, up 49%).
  • Acquisitions contributed 12% to sales growth and 11% to trading profit growth in the year.
  • Group trading margin of 11.6%, an increase of 50bps.
  • Basic EPS up 48% to 305.6 cent.
  • Final dividend per share of 26.0 cent giving a total dividend for the year of 45.9 cent.
  • Year end net debt1 of €756.1m (2020: €236.2m). Net debt2 to EBITDA2 of 0.88x (2020: 0.4x).
  • ROCE of 19.5% (2020: 18.4%).

1 Net Debt pre-IFRS 16
2Net debt to EBITDA ratio is pre-IFRS 16 per banking covenants
 
  • Unprecedented raw material inflation with strong price recovery effort.
  • Strong underlying volume growth of 13% and 11% in Insulated Panels and Insulation respectively.
  • Insulated Panels sales increase of 45% driven by strong momentum generally in construction activity, raw material led price growth further enhanced by strong demand in high growth sectors. Year end order backlog volume 28% ahead of the same point in 2020. 66% growth in sales value of QuadCoreTM.
  • Insulation sales increase of 50% reflecting strong demand in key markets and inflation recovery on pricing. Strong development activity during the year including acquisition of Logstor, a leading global supplier of technical insulation solutions.
  • Light & Air sales growth of 24% reflecting the acquisition of Colt Group in Q2 2020 and the acquisition of Skydome in 2021. Strong backlog at year end.
  • Water & Energy sales increase of 29% reflecting a strong performance across all key markets, with the exception of Australasia.
  • Data & Flooring sales growth of 21% reflecting strong datacentre activity and ongoing development of the European operations.
  • Invested a total of €714m in acquisitions, capex and financial investments during the period.
  • Since period end, approximately €800m committed on three transactions subject to customary approvals.
KPIs 2021 2020 2019 2018 2017
Revenue 6,497.0 4,576.0 4,659.1 4,372.5 3,668.1
Trading Profit 755.0 508.2 497.1 445.2 377.5
Trading Margin 11.6% 11.1% 10.7% 10.2% 10.3%
Profit before Tax 689.0 459.7 454.4 404.9 346.5
Free Cash Flow 127.1 479.7 337.1 308.4 198.5
ROCE 19.5% 18.4% 17.3% 16.8% 17.8%
           
Balance Sheet 2021 2020 2019 2018 2017
Working Capital of Annualised Turnover as a % of Q4 Sales  13.8% 8.8% 11.9% 11.5% 13.0%
Total Shareholder's Equity 2,959.3 2,397.6 2,120.4 1,788.9 1,568.0
Net Debt 756.1 236.2 633.2 728.3 463.9
Net Debt as a % of Total Shareholder's Equity  25.6% 9.8% 29.8% 40.7% 29.6%
Net Debt / EBITDA 0.88 0.4 1.1 1.4 1.05
Current Assets / Current Liabilities 1.80 2.21 1.66 1.59 1.65
Per Share Data (in euros cent) 2021 2020 2019 2018 2017
Earnings (basic)  305.6 206.2 204.6 184.0 159.0
Dividend  26.0 20.6 13.0 42.0 37.0
Total Shareholder Return % 84% 5.4% 47.2% 3.8% 42.7%


Business Review

2021 was a year marked by extraordinary volatility in supply chains and wider society. Whilst this dynamic created significant challenges to our business, and indeed our industry, underlying demand remained strong through the year, albeit somewhat weaker in quarter four. Our key raw materials also saw dramatic price inflation, and in all, in the region of €700m of cost increases were required to be passed through to market. The result of all of this was a record performance by the Group with revenue growing by 42% to €6.5bn, and trading profit growth of 49% to €755m. Basic EPS grew by 48%.
 
Activity was strong across most of our markets in both residential and industrial construction, newbuild and RMI. Order intake trends displayed in the first half eased off over the course of the second half. That said, the Insulated Panels global order backlog finished the year ahead by 28% in volume. North and South America, France and Britain were particular stand-out positives. The Group’s growing presence in the tech, online distribution and automotive segments was instrumental in delivering this performance.
 
The demand for significantly more efficient materials and methods of construction is clearly gaining much needed momentum and, with the prevailing energy cost and supply threats around the world, it is likely that the drive toward conservation will be accelerated.

Planet Passionate

2021 was the second year of our ambitious ten-year programme to further boost the environmental ethos of Kingspan. This builds upon the foundations laid over our previous ten-year Net Zero Energy programme that completed successfully in 2020. The current programme encompasses stretching goals across twelve targets (see below).
 
We have recently announced revised 1.5⁰C aligned science-based targets bringing them in line with our Planet Passionate programme goals to reduce Scope 1, 2 and 3 greenhouse gas (GHG) emissions. The Group has now committed to reducing absolute Scope 1 and 2 GHG emissions by 90% by 2030 from a 2020 base year. It has also pledged to reduce absolute Scope 3 GHG emissions by 42% within the same timeframe. We will also implement a €70 per tonne internal carbon charge from 2023 which will galvanise full alignment across the organisation.

Energy
Carbon
Circularity
Water
pexels-photo-421888
  • Maintain our Net Zero Energy status
  • Increase our direct use of renewable energy to 60% by 2030
  • Increase our on-site generation of renewable energy to 20% by 2030
  • Install solar PV systems on all wholly owned facilities by 2030
BIM_News
  • Net zero carbon manufacturing by 2030
  • 50% reduction in product CO2 intensity from our primary supply partners by 2030
  • 100% zero emission company funded cars by 2025
Kingspan_Planet Passionate_Web Spotlight Image 1
  • 1 billion PET bottles upcycled into our manufacturing processes by 2025
  • All QuadCoreTM insulation to utilise upcycled PET by 2025
  • Zero company waste to landfill by 2030
Kingspan Planet Passionate Ocean
  • 5 active ocean clean-up projects by 2025
  • 100 million litres of rainwater harvested by 2030

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