Resilient by nature
Annual Report 2021
ROCKWOOL International A/S
Hovedgaden 584
2640 Hedehusene
Denmark
CVR No. 54879415
ROCKWOOL Group Annual Report 2021
Other
reports
Resilient by nature
Remuneration Report 2021
Management’s review
Introduction
Message from the Chairman and CEO 04
Five-year overview 08
Financial highlights 2021 09
Strategy and business
The ROCKWOOL purpose and strategy 10
Our business model 13
Outlook 2022 and trends over the business cycle 14
Insulation segment - Business update 18
Systems segment - Business update 21
Science and sailing at SailGP event in Denmark 30
Non-nancial review
Sustainability 32
Taxonomy eligibility 35
Climate-related nancial disclosures 36
Governance and shareholder information
Risk management 38
Corporate governance 44
Shareholder information 52
Financial performance 54
Financial statements
Consolidated nancial statements 61
Financial statements for
ROCKWOOL International A/S 102
Overview
Sustainability Report 2021
Remuneration Report 2021
Corporate Governance
Report 2021
ROCKWOOL Group Annual Report 2021
3
Chairman Thomas Kähler
and CEO Jens Birgersson
Strong results
in a challenging
environment
Dear stakeholders,
By almost any measure, 2021 was a strong year
for ROCKWOOL Group. Our sales grew well in
almost all markets across the entire business;
protability remained solid despite soaring
ination; we opened a new factory in the United
States; and approved investments in new capacity
in several other markets. Pandemic-related
demand and a growing focus on climate action
drove much of the progress in new build and
renovation construction.
COVID-19 was still with us in 2021 but became
less of a threat thanks to rising vaccination
rates, sensible guidance from governments,
good habits and technology improvements.
All this helped our people to be safe and made
our business and the communities where we
operate more resilient.
The surprising speed of the 2021 economic
rebound also brought challenges, including
inventory and material shortages in some
markets as well as logistics challenges that
required creative solutions. Special thanks go to
our customers for their patience and especially
our people working in the factories and across
the commercial, technical, procurement, and
support teams, who worked together to reduce
customer delays.
ROCKWOOL Group Annual Report 2021
4
Strong results
in a challenging
environment
Results and investments
ROCKWOOL achieved good sales growth in almost
all markets, driven globally by high construction
activity. Rapidly rising input costs toward the end of
the year, especially in energy, materials and logistics,
impacted margins despite price increases and
productivity gains.
Net sales for the year reached 3088 MEUR, while
EBIT margin was 13.0 percent, at level with 2020.
Prot for the year was 303 MEUR, a 21 percent
increase from 2020. Notwithstanding substantial
investments, our balance sheet is very strong and we
remain net debt free.
In terms of investments, we acquired the stone
wool manufacturing operations of Bansyo Holdings
in Japan, which gives us an entry for our insulation
business in the world’s third largest economy.
Additionally, Rockfon acquired Tripplex Acoustic
and a minority stake in Akuart, an acoustic design
company.
We continue to invest in new factories to meet
growing demand for our stone wool while also
decarbonising our operations. Our newest facility in
West Virginia, USA began commercial operations in
July 2021. It is already helping to meet the growing
demand for our insulation products primarily in the
densely populated Mid-Atlantic region.
In addition, we announced plans to build
a new factory in Soissons, France using electric
melting technology. We also announced plans to
expand production capacity at our factory in Vyborg,
Russia, which like Soissons, will use electric melting
technology. Using this cutting-edge technology will
reduce the factory’s carbon emissions by around 50
percent. Likewise, we will be converting our factory
in Switzerland to use electric melting technology.
We made good progress on our non-nancial
key gures, exceeding our 2022 interim goals on
CO
2
intensity with a 16 percent reduction and
reclaimed waste adding three new countries. We
took signicant measures to decarbonise several of
our factories, and to increase the energy efciency
in owned ofces. Read our Sustainability Report for
further details.
Time for climate action
The COP26 climate conference reiterated the
urgent need to reduce greenhouse gas emissions
and reverse the negative trend. Clearly, greater
accountability and attention to short-term action is
required as the world is far from on track to meeting
Paris Agreement goals.
With a focus on energy efciency in buildings,
ROCKWOOL’s objective at COP26 was to share
practical, here-and-now proposals to close the gap
between long-term goals and the short-terms
actions needed to achieve them. Getting it right on
buildings matters greatly, as they account for such a
large share of global energy consumption and
carbon emissions. Simply put, the Paris Agreement
goals cannot be met without a substantial increase in
energy efciency in the current building stock.
In addition to prioritising “deep” renovations that
improve a building’s energy efciency by at least
60 percent, it is also essential to choose climate-
friendly, sustainable materials today that support
rather than undermine the long-term goals of
tomorrow. That means, for example, using materials
like stone wool that are re resilient and circular by
nature; that can be recycled rather than incinerated
or landlled when the time comes; that maintain
their performance for 60+ years; and that do not
use chemical additives to resist mould or reduce
combustibility.
Energy renovation of the world’s buildings has
enormous climate, nancial, and health benets –
today, tomorrow, and for decades to come. As most
home- or building-owners will only renovate once, it
is essential to do it right. And that means deep
renovations done with climate-friendly, sustainable,
circular materials.
Health and safety
The health and safety of our employees and those
working at our locations is always our foremost
priority. Most importantly, we had no work-related
fatalities in 2021. Our Lost Time Incident (LTI) rate
increased, however, which is not satisfactory. We
have initiated several improvement measures,
including additional safety audits at the factories with
the highest LTI rates together with extra focus on
sharing best practices across the Group.
The opportunities in a crisis
In business as well as private life we prefer times
without crises. But when they come, there is usually
an opportunity to emerge stronger. We think society
is seeing that now in terms of vaccine science and
pandemic preparedness.
We see the same opportunity with buildings and
climate change. The focus from policymakers on
building the economy back better and greener is
unquestionably a positive for society. Specically,
coordinated regional efforts like the Renovation
Wave in the EU and the European Commission’s
Buildings Directive will make communities more
resilient to climate change and substantially reduce
global emissions from buildings.
Financially, we forecast 2022 sales growth in the
range of 15-20 percent in local currencies, with
higher uncertainty for the second half of the year.
Input costs are expected to remain high or increase
in the rst half of 2022, which we aim to offset with
further operational productivity gains, cost savings,
and price increases. We anticipate gradual margin
improvement as the year progresses and forecast a
full-year EBIT margin around 13 percent.
For good reasons, we can be condent about the
future. The 2022 investment level will be around 500
MEUR, with the new factory in France, capacity in
Russia, and the Systems segment capacity in Canada
being the main drivers.
Thank you to our colleagues for the incredible effort
this year. Well done, all of you. Despite some supply
chain challenges, our customer satisfaction score
increased for the seventh consecutive year. We thank
our customers for trusting us to take care of your
business needs – and our suppliers for helping us
take care of ours.
Thomas Kähler Jens Birgersson
Chairman CEO
ROCKWOOL Group Annual Report 2021
5
We create sustainable solutions
to protect life, assets, and the
environment today and tomorrow.
Austria
Belarus
Belgium
Bulgaria
Canada
China
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Hungary
India
Italy
Japan
Korea
Latvia
Lithuania
Malaysia
Mexico
Norway
Philippines
Poland
Romania
Russian Federation
Singapore
Slovakia
Spain
Sweden
Switzerland
Thailand
The Netherlands
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States
Vietnam
Manufacturing facilities
Sales ofces
World leader with
local presence
51
Manufacturing
facilities
40
Countries where
we are present
120
+
Countries in which
we have sales
ROCKWOOL Group Annual Report 2021
7
Five-year overview
2021
(MDKK)
2021
MEUR
2020
MEUR
2019
MEUR
2018
MEUR
2017
MEUR
Income statement
Net sales 22 966 3 088 2 602 2 757 2 671 2 374
EBITDA 4 473 602 522 548 507 417
Amortisation, depreciation and write-downs 1 493 201 184 176 166 159
EBIT 2 979 401 338 372 341 258
Financial items -57 -8 -13 -5 -7 -11
Prot before tax 2 923 393 325 367 335 275
Prot for the year 2 251 303 251 285 265 214
Balance sheet
Non-current assets 15 830 2 129 1 927 1 825 1 468 1 383
Current assets 7 072 951 817 869 963 781
Total assets 22 902 3 080 2 744 2 694 2 431 2 164
Equity 17 803 2 394 2 092 2 118 1 877 1 684
Non-current liabilities 1 214 163 158 160 121 122
Current liabilities 3 885 523 494 416 433 358
Net interest-bearing cash / (debt) 565 76 95 212 375 241
Net working capital 2 278 306 213 247 198 190
Invested capital 17 058 2 294 1 961 1 889 1 542 1 452
Gross investment in plant, property and equipment 2 239 301 335 393 220 123
Cash ow
Cash ow from operating activities 3 166 426 438 402 408 332
Cash ow from investing activities 2 306 310 362 400 212 165
Free cash ow 860 116 76 2 196 167
2021
(MDKK)
2021
MEUR
2020
MEUR
2019
MEUR
2018
MEUR
2017
MEUR
Others
R&D costs 335 45 41 41 38 32
Number of patents granted 253 253 148 235 268 201
Number of full-time employees (year-end) 11 968 11 968 11 448 11 691 11 511 11 046
Ratios
EBITDA margin 19.5% 19.5% 20.1% 19.9% 19.0% 17. 6%
EBIT margin 13.0% 13.0% 13.0% 13.5% 12.8% 10.8%
Payout ratio 33.5% 33.5% 37.7% 33.3% 33.3% 33.3%
ROIC 18.8% 18.8% 17. 6% 21.7% 22.8% 17.9%
Return on equity 13.5% 13.5% 11.9% 14.3% 14.9% 13.3%
Equity ratio 77.7% 77.7% 76.1% 78.5% 77.1% 77.5%
Leverage ratio -0.13 -0.13 -0.18 -0.39 -0.74 -0.58
Financial gearing -0.03 -0.03 -0.05 -0.10 -0.20 -0.14
Non-nancial key gures
CO
2
intensity (scope 1+2) per tonne stone wool (index*) 84 91 96 96 97
Energy efciency in own buildings (index*) 81 95 94 100 100
Water intensity from stone wool production (index*) 85 90 93 97 99
Number of countries where we offer recycling service 17 14 11 11 6
Landll waste from our stone wool production (index*) 49 50 84 105 99
Lost time incident frequency rate 3.6 3.0 2.9 3.5 3.5
Absolute GHG emissions (scope 1+2) (index**) 101 90 - - -
Absolute GHG emissions (scope 3) (index**) 100 89 - - -
* Index=100 in 2015 (baseline).
** Index=100 in 2019 (baseline).
For denitions of key gures, ratios and exchange rates see p. 97.
ROCKWOOL Group Annual Report 2021
8
2021
2021202020182017 2019
2017
2018
2019 2020
2017 2019 20202018
2400
2000
1600
1200
2000
1500
3000
3500
2500
1000
2021
200
400
300
500
100
0
16%
12%
24%
20%
8%800
400
300
200
100
0
2021
2017 2018 20202019
12%
6%
18%
24%
0%
-6%
EBIT
EBIT margin
EBIT
401MEUR
Up 19% compared to 2020
Maintenance
Capacity
Sustainability
Acquisitions
Sustainability investments
91MEUR
Up from 77 MEUR in 2020
Net sales
Growth (reported)
Sales increased
18.8%
in local currencies
Invested capital
ROIC
ROIC
18.8%
Up from 17.6% in 2020
Net sales & sales growth
(MEUR)
EBIT & EBIT margin
(MEUR)
ROIC & Invested capital
(MEUR)
Investments
(MEUR)
14%
12%
13%
11%
10%
9%
Financial highlights 2021
ROCKWOOL Group Annual Report 2021
9
At the pinnacle of ROCKWOOL’s strategy is our
corporate purpose: to release the natural power
of stone to enrich modern living. This reects
our purpose’s unifying nature, conveying that
stone is our core raw material and the bedrock
on which our business is based.
And while the stone we use may be millions of
years old, what we do with it is cutting-edge. Every
day, ROCKWOOL’s creative and entrepreneurial
employees are developing and applying new
technologies and innovations to release the
potential of stone to enrich modern living.
As we look to the future, stone wool and the
products we make with it will play an increasingly
signicant role in addressing two of the megatrends
inuencing virtually every aspect of modern society
– urbanisation and climate change.
Every week, about 1.5 million people move to
urban environments. By 2030, there will be an
estimated 43 megacities around the globe with
more than 10 million inhabitants. And by 2050, the
earth’s population is expected to be close to 10
billion, nearly 70 percent of whom will live in cities.
The combination of more people living in more
densely populated urban areas and the worsening
consequences of climate change will increase
the demand for energy efcient housing.
Greater urban population density also heightens
the importance of constructing and renovating
the buildings in which we live, work, learn, and
recover with non-combustible building materials.
At the same time, the world must feed its growing
population using fewer resources, while also
managing the effects of more frequent extreme
weather events, particularly in urban environments.
The ROCKWOOL business strategy is driven by
our people and a passion for creating solutions
that connect these global trends with protable
business opportunities by creating superior
solutions to protect life, assets, and the
environment, and to create comfortable,
healthy, and attractive spaces. In other words,
by enriching modern living.
Our aspiration is to grow faster than the market
overall by offering top-quality products and
services, strengthening our brand, building
long-term customer relations, and driving an
operationally effective business across all
segments and geographies where we are active.
As our business is inherently capital intensive,
we focus on exploiting our natural strengths to
balance risks, which includes a differentiated
approach across selected geographies.
In North America, for example, we are expanding
our production capacity to capture signicant growth
opportunities within all major business areas.
In Europe, we will grow faster than the market
by launching new products and services, while
improving our customer-facing activities and
the productivity of our production platform.
We will expand capacity where needed to meet
steadily growing demand in and near core
markets and enhance our geographic coverage
and customer service level.
In Asia, the approach is different, in that we will
develop and grow our local business selectively
where there is a clear demand for our premium
quality offerings.
Continuing to recruit, develop, and retain highly
skilled, highly motivated colleagues is essential
to achieving our growth ambitions and fullling
our purpose. Doing so will remain a high
priority for ROCKWOOL Group across all our
business areas and operations.
At ROCKWOOL, everything we do is based on
releasing the natural power of stone to enrich
modern living. Protably offering solutions to
address the challenges created by enduring
global megatrends will help ensure our
successful future growth.
The ROCKWOOL purpose and strategy
The ROCKWOOL business strategy is driven by
our people and a passion for creating solutions
that connect global trends with protable business
opportunities by creating superior solutions to
protect life, assets, and the environment, and to
create comfortable, healthy, and attractive spaces.
In other words, by enriching modern living.
ROCKWOOL Group Annual Report 2021
10
The 7 strengths of stone
01
Fire-
resilience
Withstand
temperatures
above 1000°C.
02
Thermal
properties
Save energy
by maintaining
optimum indoor
temperature
and climate.
03
Acoustic
capabilities
Block, absorb
or enhance
sounds.
04
Robustness
Increased
performance
and greater
stability with
lower costs.
05
Aesthetics
Match per for-
mance with
aesthetics.
06
Water
properties
Engineered
to repel or
absorb water .
07
Circularity
Reusable and
recyclable
material.
ROCKWOOL Group Annual Report 2021
12
Our business model
What does ROCKWOOL Group do?
Our business is dened by:
Our purpose
Low-risk transactional sales
Local business
Capital intensive production
Our impact on society
We see enormous opportunity to leverage the natural power
of stone to create products that accelerate progress towards
a safer, healt hier, low-carbon future.
Volcanic rock is mixed with lime
stone and can contain up to 75
percent recycled material – in
certain geo graphies and product
lines – before
being heated to
more than 1500°C.
A nal heat treatment cures the
binder, giving the stone wool
dimensional stability, before
nal processing
and production into
a wide range of
products.
The molten rock is spun into
wool. A binder and either a
special oil or wetting agent are
added depending on the appli
-
cation of the
end product.
51
manufacturing
facilities
40 countries
where we have a presence
~400 km
Average transport distance
for insulation in Europe (includ-
ing import/export)
In certain geographies and product
lines, our products can contain
up to 75%
recycled material
120+
countries with
sales activity
90%
of sales does not cross
customs borders
All Rockpanel boards are
durable like stone,
easy to cut, and resistant
to the effects of moisture,
temperature, re and
the weather.
In schools with no sound
absorption, children cannot hear
up to
70% of consonants their
teachers speak.
Rockow can ab sorb up
to
95% of its volume in
water, without losing its
rigidity and strength.
Urban horticulture can
reduce land
use for vegetable
growing by
75%
or more.
Proper insulation
alone can reduce
heating needs
by 70%.
S
t
o
n
e
w
o
o
l
i
s
f
u
l
l
y
r
e
c
y
c
l
a
b
l
e
ROCKWOOL Group Annual Report 2021
13
Despite soaring energy prices, expectation for 2022 is that
market dynamics will remain positive with modest volume
growth.
Outlook 2022
and trends over
the business cycle
Market review
Overall, the construction industry experienced high growth in 2021, driven
substantially by pandemic-related demand, government-funded economic recovery
and stimulus packages, and increased climate action. Especially in Europe and a
growing number of U.S. jurisdictions, energy efcient buildings gained greater
recognition for their role in reducing greenhouse gas emissions.
The rapid pace of recovery also created challenges, including industry-wide supply
constraints, rising ination, and soaring energy prices. We expect these challenges to
continue affecting market conditions in the new year.
ROCKWOOL achieved good sales growth in almost all markets across the entire
business. Primarily the residential sector, particularly in renovation, drove the growth,
while technical insulation and commercial segment sales recovered later in the year.
Sales in China and elsewhere in Asia were subdued, as COVID-19 continued to
negatively affect markets. We saw a growing demand for Systems segment products.
ROCKWOOL Group Annual Report 2021
14
Sales growth of
15-20%
in local currencies
EBIT margin around
13%
Investments excl.
acquisitions around
500MEUR
Broad-based stone wool demand growth led
to capacity expansion across the industry,
including for ROCKWOOL. Our newest factory
came online in West Virginia, USA; and we
announced new capacity additions in France
and Russia. We also acquired a stone wool
manufacturer in Japan. Furthermore, we added
Systems segment capacity at existing facilities
in Canada, the Netherlands, and Poland. We
expect this trend toward greater capacity
investments will continue.
Outlook 2022
We expect the strong demand for our products,
which evolved rapidly during the last three
quarters of 2021, to continue in 2022, though
signicant uncertainties complicate the full-year
outlook picture.
In particular, continued high energy costs in
Europe and rising ination globally potentially
could disrupt the construction sector recovery
and dampen overall market activity. It is at this
stage unclear to what extent higher material
and energy prices will impact construction
activities during the year, and we do not
currently see reliable construction industry
consensus forecasts for 2022.
That said, we do foresee a risk that construction
activity will slow down in Europe later in the year
due to supply chain and workforce bottlenecks
as well as continued high energy costs. Much
will depend on the market’s ability to absorb
relatively signicant cost increases for a broader
range of construction materials. If ination
continues rising, so too does the risk that some
renovation and new-build construction projects
will be postponed or cancelled.
In North America, we anticipate that demand
for our products will continue to be strong.
The new capacity we brought online in 2021
will help ROCKWOOL meet the demand and
to grow our market share. We foresee the
strong demand for Systems segment products
continuing in 2022.
We anticipate that a combination of higher
prices and strong demand for sustainable and
circular stone wool products in 2022 will allow
us to continue a double-digit growth albeit
with a higher portion derived from pricing than
volume. We forecast a net sales growth in local
currencies in the range of 15-20 percent for
2022, with higher uncertainty for the second
half of the year.
EBIT margin will be inuenced during the
rst part of the year by the high and rapidly
increasing input costs, though we anticipate
gradual improvement as the year progresses.
We thus forecast a full-year EBIT margin around
13 percent.
As we initiate two large capacity expansion
projects in France and Russia along with
Systems segment capital expenditures and
various sustainability investments, we forecast
an overall capital expenditure of around 500
MEUR for 2022, excluding acquisitions.
Trends over the business cycle
Multiple interrelated trends will inuence and
support ROCKWOOL’s growth prospects over a
complete business cycle. These trends include:
Climate action;
Global energy transition and energy
efciency;
Building renovation;
Circularity and resource efciency; and,
Health and wellbeing.
Climate action
The IPCC’s Sixth Assessment report concludes
that climate change is intensifying; that
human inuence has warmed the climate at
unprecedented rates; and that we need to
rapidly reduce greenhouse gas emissions. That
report and the COP26 climate conference have
contributed to refocusing attention on the need
for urgent action to address the global climate
challenge.
That climate change implications are interlinked
and pose environmental, economic, social
and technological risks is widely recognised,
as is the compelling need to foster climate
resilience for businesses, the environment, and
communities. Encouragingly, an increasing
number of countries and businesses are setting
science-based and other targets aligned with
the Paris Agreement.
Outlook
2022
ROCKWOOL Group Annual Report 2021
15
How much energy the world consumes and
how that energy is produced will have dramatic
consequences for society’s ability to reduce
climate change’s inevitable impacts.
Global energy transition and energy
efciency
According to the International Energy Agency,
energy efciency needs to deliver more than
40 percent of the reduction in energy-related
greenhouse gas emissions over the next 20
years. Saving energy and then generating
renewable energy to satisfy the remaining
requirements is the most efcient, cost-
effective way to decarbonise society.
Using less energy overall (through improved
energy efciency) is a critical element in
increasing the share of renewables in the
energy mix and reaching carbon neutrality.
Doing so reduces overall energy system
capacity needs and contributes to a faster and
more cost-effective transition to renewable
energy sources.
Furthermore, reducing energy demand and
consumption also reduces household and
societal expenditures on energy. This in turn
reduces dependence on imported fuels, thus
creating greater energy security.
The current high energy costs may dissipate
over time, but could impact consumer spending
and construction activities in the short term. In
the broader perspective, higher energy costs
will drive an even greater focus on energy
efciency.
Building renovation
That buildings play a major role in reaching
climate goals matters greatly, as they account
for 28 percent of global emissions; 36 percent
in Europe; and 40 percent in the United States.
In the EU, around 75 percent of buildings are
energy inefcient, and most of them will still be
in use in 2050.
The EU is heavily prioritising and providing
nancing for building renovation as part of its
overall “Fit-for-55” green transition strategy.
Additionally, multiple jurisdictions in the
United States have either established or are
considering establishing energy efciency
standards for buildings.
This focus on renovating the world’s building
stock as a means to achieving climate goals
(and greater health and wellbeing – more on
that below) will continue driving demand for
high-quality, sustainable insulation and other
building materials, such as exterior wall systems
and interior acoustic solutions.
Circularity and resource efciency
As the world’s population continues to grow,
pressure on natural resources will only increase.
Creating greater circularity across all economic
sectors will contribute to relieving this pressure,
especially in the built environment, which is
responsible for 30-40 percent of the global
waste generation.
There is increasing momentum in the
construction sector and elsewhere toward
locking in circular economic benets, based on
three well-established principles: designing out
waste and pollution; keeping materials at their
highest value; and restoring natural systems.
This focus on circularity and resource efciency
extends to other economic sectors as well, not
least food production. Feeding the world’s
growing population requires sustainable and
efcient alternatives to supplement traditional
farming.
In contrast to petroleum-based plastic
materials, stone wool is inherently circular
and fully recyclable. ROCKWOOL and our
construction- and horticultural-related products
are thus well positioned to support this
accelerating trend toward greater circularity
and resource efciency.
Health and wellbeing
Driven in part by the current global pandemic
and otherwise a natural consequence of more
people living in densely populated urban
areas, there is a growing recognition among
public authorities as well as building owners,
occupants, developers, insurers, and nanciers
regarding the need to create healthy and safe
communities across multiple parameters.
As noted above, renovating buildings for
greater energy efciency is becoming
increasingly important for its positive
contribution to climate action. But better
thermal efciency also contributes to reducing
energy poverty as well as other problems
such as mould growth, with the attendant
health benets these attributes bring. The
same applies to acoustic comfort, the health
and wellbeing benets of which stone wool
insulation and other acoustic products promote.
In addition, we anticipate that the trend
towards stricter re safety building regulations
prohibiting the use of combustible materials
will accelerate, with the United Kingdom being
a prime example. Building future resilient
communities also requires addressing ood
risks that can result from extreme weather
events and also here, we can provide solutions
based on stone wool.
Outlook 2022 and trends over the business cycle (continued)
ROCKWOOL Group Annual Report 2021
16
Revenue potential
EU and individual member states are
increasingly providing nancial, policy, and
technical support prioritising energy efciency
renovations, while multiple jurisdictions in the
United States have either established or are
considering establishing energy efciency
standards for buildings. Overall, there is a clear
potential for ROCKWOOL sales to benet from
such support schemes.
In countries such as Italy and France, for
example, we have already seen a correlation
between our sales in the renovation segment
and the national incentive programmes. We
anticipate a similar development in Germany, as
their incentive programmes are strengthened
and focus switches more toward building
renovation.
Programmes supporting “Renovation Wave”
objectives are already in place in other
European geographies as well. We anticipate
that the forthcoming revisions to the Energy
Performance in Buildings Directive will see
further member state focus on incentive
programmes promoting energy efciency
renovation.
Deeper penetration of our stone wool offering
in the United States and the United Kingdom
and investing in and exploiting expansion
opportunities for the Systems segment
businesses allows for a higher growth rate in
these key markets.
In summary, supported by the long-term
trends, the increased focus on energy efciency
in Europe and higher growth opportunities in
specic markets, we believe that sales of our
stone wool products will continue to grow
faster than the market and that we can navigate
and optimise sales through the business cycle.
Earnings potential
Several initiatives in the past years and the
accelerated commitments towards reducing
greenhouse gas emissions have improved the
level of protability.
Concerted work on customer relations, sales
force excellence, account planning, customer-
oriented digital solutions, and internal sales
organisation as well as upgrades of contractual
terms have contributed to our ability to realise
the stronger earning potential.
Operational and technological improvements
in manufacturing and supply chain have yielded
sustained progress both in terms of increased
capacity utilisation and productivity gains.
Recently completed and newly announced
manufacturing facilities are/will be equipped
with our most advanced technologies.
The same applies for conversions of existing
manufacturing facilities to use less carbon-
intensive fuel sources, which will contribute to
creating a more commercially competitive and
environmentally friendly production footprint.
As we pursue our decarbonisation strategy,
we will naturally take into account available
economic incentives to support our transition
towards fossil-free energy consumption.
We see a potential to further lift earning
levels from productivity and cost efciency
gains within both the Insulation and Systems
segments – this notwithstanding that capacity
expansions and facility conversions impact
earning levels during the start-up periods.
We will continue to make the necessary
investments in new technologies, sales force
effectiveness, and digitalisation to enable the
organic growth over the business cycle.
Investments
Staying ahead of demand is vital and with a
predominately organic business model, adding
new capacity for the Insulation and Systems
segments is a must.
In the coming decade, building the capacity
expansions in France and Russia announced in
2021, we plan to continue expanding our stone
wool manufacturing capacity in Europe and
North America and to gradually strengthen our
footprint in Asian markets.
Combined, these will result in relatively large
capital expenditures in the coming years, which
in periods could exceed the 13 percent ratio of
revenue average we have experienced in recent
years.
Sustainability-related investments will continue
to be part of our capital expenditures. We
expect to increase future investment levels
to create more environmentally friendly
manufacturing facilities, more energy
efcient buildings, and overall to reduce the
environmental impact of our operations in all
areas. While the level will vary each year, we
foresee approximately 100 MEUR annually in
sustainability-related investments.
We have the ambition to keep return on
invested capital (ROIC) above 15 percent over
the business cycle.
Outlook 2022 and trends over the business cycle (continued)
ROCKWOOL Group Annual Report 2021
17
Insulation
segment
Key gures Insulation segment
MEUR Q4 2021 Q4 2020 2021 2020
External net sales 621 491 2 291 1 914
EBIT 69 64 275 236
EBIT margin 9.4% 11.0% 10.4% 10.7%
Financial results
Insulation segment sales reached 2291 MEUR,
an increase of 20 percent in local currencies and
reported gures. All markets and businesses
contributed to the solid growth, mainly driven
by high construction and renovation activity in
the residential sector. Technical insulation and
commercial sector sales recovered later in the
year.
Insulation segment EBIT reached 275 MEUR
with an EBIT margin of 10.4 percent, a decrease
compared to 2020 of 0.3 percentage points.
Sales prices and productivity gains did not fully
offset the accelerating ination on production
materials, energy and logistic costs. Start-up
costs from the new factory in the United States
also impacted the earnings level.
74%
of sales
ROCKWOOL external façade insulation, Cigacice, Poland.ROCKWOOL Group Annual Report 2021
18
Insulation segment
Business update
Insulation solutions
ROCKWOOL offers re-safe, thermally-efcient,
highly durable, and recyclable stone wool insulation.
The residential sector has been a key driver of
industry growth. In Europe, renovation schemes
introduced in 2020 continued apace. Moreover,
the EU next generation recovery fund started to
gain traction, with the European Commission
endorsing member states’ Recovery and
Resilience Fund spending plans and releasing the
rst wave of funds, with dedicated allocations for
energy efcient renovation.
With the pandemic leading to more people
working from home, residential new build as well
as renovation increased in many markets.
Conversely, the non-residential sector did not
fully recover, especially ofce and commercial
buildings.
By the second half of the year, the high demand
for building materials led to industry-wide supply
constraints, including raw material and labour
shortages as well as rising ination and soaring
energy prices.
Insulation segment sales signicantly increased in
2021 even compared to the pre-pandemic 2019
highs.
In Western and Eastern Europe, sales were up by
double-digits across most countries compared to
2020.
North America delivered solid sales in 2021,
driven by continued high construction activity and
our West Virginia factory beginning operations
during the year.
Sales in China and other parts of Asia were
negatively affected by COVID-19 with temporary
close downs in some markets. At the same time,
we strengthened our position in Asia by acquiring
Japanese manufacturer Bansyo Holdings. Japan
is a mature insulation market backed by a
government committed to signicantly reducing
energy consumption and emission levels over the
coming years. Technical insulation sales recovered
as the oil industry rebounded in the latter half of
the year.
We continue to invest in new factories to meet
growing demand for our stone wool insulation. In
addition to the West Virginia facility, we announced
plans in 2021 to build a new factory in Soissons,
France and expand existing capacity in Vyborg,
Russia.
The construction industry experienced high
growth in 2021. After a soft rst quarter,
economic activity increased rapidly during the
remainder of the year. Private consumption
largely drove the growth, fuelled by increased
vaccination rates, countries coming out of lock-
down, high consumer savings, and economic
recovery packages from government.
ROCKWOOL external façade insulation, Cigacice, Poland. ROCKWOOL Group Annual Report 2021
19
Case study
The ephemeral Grand Palais
Standing opposite the Eiffel Tower across the
Champ de Mars greenspace in the heart of Paris
is the Grand Palais Éphémère, a unique building
with an unusual purpose.
While its permanent namesake, the Grand Palais,
undergoes major renovation, the Éphémère was
built to take over its lofty responsibilities:
accommodating the city’s busy schedule of
exhibitions in art, fashion, sport and culture.
For four years, anyway. In 2024, when renovation
of the Grand Palais will be nished, the plan is for
this pre-fabricated timbre frame building to be
taken apart and whisked away, with all its modular
components and materials being reused and
repurposed for other projects.
For the architect, Wilmotte & Associés, achieving it
all – a beautiful, high-performing building that can
also be dismantled and reused – came down to
creative design and careful choice of high-quality
yet reusable materials, including ROCKWOOL
stone wool for thermal and acoustic insulation.
With a capacity for 9000 guests at a time, controlling
internal noise and temperature levels inside were
critical for creating an inviting and comfortable
environment. At the same time, local ordinances
require that noise pollution emanating from the
building be held below very stringent levels.
“The overall desired acoustic performance
determined the dimensioning of the insulation
system”, says Julie Jean, the architect project
manager for Wilmotte. Covering the 12 000 m
2
roof is a sandwich panel insulation system made
of 100 to 150 mm of stone wool, provided by
ROCKWOOL Core Solutions, “sandwiched”
between steel sheets and combined with a
plasterboard ceiling. To dampen internal noise, a
combination of stone wool and echo-free tension
fabric cover interior walls.
Prior to installation, the sandwich panel system
was tested at the Scientic and Technical Centre
for Building, a French national organisation that
ensures the quality and safety of buildings,
including how they integrate into neighbourhoods
and cities.
Thanks to these protective systems, Paris gets
a performing arts space worthy of the role while
safeguarding quality of life for nearby residents
and giving environmental and economic peace-
of-mind, knowing the building’s components and
materials will be reused or recycled.
ROCKWOOL Group Annual Report 2021
20
Systems
segment
Key gures
MEUR Q4 2021 Q4 2020 2021 2020
External net sales 221 209 797 688
EBIT 26 36 126 102
EBIT margin 11.8% 16.9% 15.9% 14.8%
Financial results
Systems segment sales amounted to 797 MEUR,
which is an increase of 16 percent in local
currencies and reported gures. All businesses
contributed positively with double-digit growth.
Systems segment generated an EBIT of 126
MEUR with an EBIT margin of 15.9 percent,
up 1.1 percentage points compared to 2020.
Mainly the second quarter of 2021 contributed
to the good performance, and most of the
businesses was able to offset the increase in
input costs against higher sales prices.
26%
of sales
Installing a Rockow system in Roermond, the Netherlands.ROCKWOOL Group Annual Report 2021
21
Ceiling and wall solutions
Rockfon ceiling and wall solutions improve
acoustic performance and indoor climates, while
resisting humidity and inhibiting mould growth.
Systems segment
Business update
We provide customers
with indoor acoustic
solutions for ceilings
and walls.
Our ceiling systems combine stone wool
acoustic tiles with suspension and specialty
ceiling and wall systems that are a fast and
simple way to create beautiful, comfortable
spaces. Our acoustic products are easy to
install, durable and signicantly improve
wellbeing and indoor comfort.
Sales for Rockfon in 2021 grew by double digits
across all major markets, driven by both market
share and pricing gains.
The market for interior acoustics is positively
inuenced by government-sponsored
renovation programmes and commercial tenants
re-examining their space usage. In addition,
there is growing demand for Rockfon products
within public health and education infrastructure
segments, as key decision makers focus
increasingly on occupant health and wellbeing.
In addition, Rockfon invested in two Denmark-
based companies, acquiring Tripplex Acoustic
and a minority stake in Akuart, an acoustic
design company.
In general, the natural benets of stone wool
are becoming better appreciated and
recognised in the design community across our
markets and within the many building ratings
systems (i.e., Well, LEED, Declare and DNGB).
We are encouraged by the interest in our
acoustic ceiling tiles and sound absorbing
solutions.
ROCKWOOL Group Annual Report 2021
22
Case study
A court where justice
is also heard
If comfortable and inviting are not words that
normally come to mind for a courthouse, the
Rechtbank in Amsterdam is an exception.
The architect, Kaan Architekten, wanted the
design of Amsterdam’s newest and largest
courthouse to represent justice as an open
process and for the public to feel engaged with
the building.
A 50-metre glass façade provides sweeping city
views for those on the inside while letting the
community peer in. The expansive forecourt, large
entryway and open interior spaces invite people
inside. At the same time, marble walls and ceilings
throughout – including in its 30 courtrooms – give
an authoritative and stately feel.
“The process of justice should not be disrupted,
so strict acoustic criteria had to be met despite
the dynamics of this busy place with high ceilings,
stone walls and oors. The only solution that
suited our vision was a monolithic ceiling like
Rockfon Mono Acoustic. It’s a sleek, seamless
system that looks like a plastered wall or ceiling”,
says Luuk Dietz, architect and project manager.
Left untreated, the buildings hard, angular
surfaces surrounding large open spaces would
create intolerable echoes and high noise levels.
Getting the acoustics right was an important
challenge to overcome for the building’s
functional performance to match its cool design.
And not just in the courtrooms, where speech
intelligibility is critical to the 150 000 cases that
will be processed each year, but in the foyer,
waiting rooms, hallways, restaurant and other
spaces that hundreds of visitors and the court’s
2000 staff will use daily.
As a result, some 25 000 m
2
of Rockfon
Mono Acoustic and Rockfon Blanka ceiling
and wall solutions were installed throughout
the building’s rooms and spaces, ensuring
the building is comfortable, meets acoustic
performance standards and is beautiful too.
ROCKWOOL Group Annual Report 2021
23
Precision Growing
Less soil, water, and fertiliser, lower CO
2
emissions, with a signicantly higher yield.
That’s Precision Growing.
Based on Precision Growing principles, these
solutions are used to cultivate a variety of crops.
Compared to soil-based methods, our solutions
produce higher yields per square metre using
far less water and fertiliser. What’s more,
they create the possibility to reduce or even
eliminate chemical plant protection products.
We also offer customer-specic advice and
tailor-made analytic tools that facilitate the
sustainable production of healthy, safe, and
fresh food produce.
The Grodan business continued to grow in
2021, with sales increasing across all markets.
Despite rising costs in the last half of the
year, overall growth in the business reects
continued interest in fresh, sustainably grown
produce. The proliferation of greenhouse
growing as well as urban farming contributed
to the growth.
In 2020, we initiated research with Wageningen
University to measure how high-tech growing
can help reach the UN Sustainability Goals. In
2021, that research conrmed that high-tech
greenhouses using Grodan growing media
scored best on water and nutrient efciency.
Also in 2021, we began working with strawberry
growers to learn more about the needs of these
customers and how Grodan can help them
meet their goals. Early results are encouraging
and indicate this is a promising growth area for
the business.
Systems segment
Business update
We are the global leader
in supplying innovative,
sustainable stone wool
growing media solutions
for the professional
horticulture industry.
ROCKWOOL Group Annual Report 2021
24
Case study
Next-level
tomato growing
For 20 years, Kris De Weerdt steered his tomato
production in Grodan growing media relying
only on his eyes and instincts as a grower. This
year, he added something else from Grodan –
a software platform for managing data.
“As a grower, you notice things and draw
conclusions as you walk through the greenhouse,
like if the plants are growing quickly or if you’re
steering them generatively. My instincts are
usually right, but now I have an overview of
the data”, says De Weerdt.
Kris and his wife, Katrien, own Krikato. Since 2001,
they have grown vine tomatoes for world-wide
export inside a 30 000 m
2
greenhouse located
near Mechelen, Belgium. The platform Kris refers
to is e-Gro from Grodan, which helps growers
collect and analyse greenhouse data and turn
it into real-time insights about the root zone,
climate, crop and harvest.
Krikato already uses sensors to monitor water
and nutrient levels and a climate computer for
humidity and temperature. Kris says e-Gro was
a logical next step for the business. He likes
the extra reassurance the daily and weekly data
gives him and is excited about what a longer time
frame will reveal – what worked, what didn’t –
and how he can use that to plan.
“As we build up the historical data the system
will be able to make harvest forecasts. That will
give us a clearer view of what we will be able to
harvest in the weeks ahead. I can imagine that
it’s very useful for growers who supply directly
to retailers too, because it helps them to make
supply forecasts”.
“The system is well-designed and the service
from Grodan is excellent. A representative has
visited us several times to show us how to get
the most out of the system and they are always
available to support us”.
“Tomatoes are sensitive crops and the virus
pressure is high. I hope that the data insights
and tighter control we have with e-Gro will
enable us to make many improvements in the
near future”.
ROCKWOOL Group Annual Report 2021
25
Design freedom
Whether shape, colour, engraving or even
bending the boards, design freedom is
at the heart of Rockpanel facades.
Systems segment
Business update
Our cladding and other boards are robust
and exible, and t perfectly with modern
architectural trends such as organic shapes,
natural materials, sustainability, and re safety,
while also providing cost efciency and ease of
installation.
In 2021, Rockpanel continued to deliver
stable growth in its key markets by focusing
on inspiring and educating architects about
the versatility and variety of the products.
Additionally, Rockpanel increased its presence
at professional distributor outlets via new point-
of-sale and small onsite trainings for installers
and contractors.
We enhanced our portfolio of products with
metallic nishes by adding new and vibrant
designs in line with today’s trends. This has
created signicant attention in the market as
a good alternative to metal cladding solutions
based on re safety, sustainability, design, and
ease of installation considerations.
Communication towards customers continued
to focus on digital channels, though as face-to-
face meetings became possible again during
the year, our sales teams could better help our
customers in the creative design process and
train installers how to best use Rockpanel and
thus benet from its easy installation.
We manufacture
board material mostly
used in ventilated
constructions for façade
cladding, roof detailing,
softs and fascia.
ROCKWOOL Group Annual Report 2021
26
Case study
Built with wood,
wrapped in stone
When the developers of the Hyperion Tower in
Bordeaux, France, wanted a low-carbon construction
that would be both elegant and durable, they
chose timber – with a Rockpanel façade.
Wood construction is increasingly popular in
France and many other parts of the world for its
sustainability bonades. The 57-metre-tall
Hyperion is no exception: made primarily from
1400 m
3
of locally sourced timber, the Hyperion
will save nearly 15 tonnes of CO
2
for each of its
100 dwellings over the entire lifecycle of the
building.
Beautiful and sustainable as it is, wood is also
difcult and expensive to maintain. That is
especially the case on a large building façade,
exposed to the elements and thus at risk of
discoloration and rot. The Hyperion building’s
highly durable and beautiful Rockpanel façade
protects the wood construction and helps deliver
the building’s desired sustainability prole.
Made from stone wool, Rockpanel is unaffected by
temperature, moisture or sunlight and is so durable
that it will keep its elegant look through time.
Rockpanel’s portfolio of non-combustible façade
products is especially important for high-rise
and high-risk buildings where it can take longer
for inhabitants to evacuate and emergency
crews to do their job in the event of a re.
Rockpanel is also easy to cut and shape to the
needs of any building. These were important
factors making Rockpanel materials well-suited
for the off-site construction of the Hyperion’s
prefabricated walls, an aspect of the project that
earned it a prestigious BIM d’OR 2019 prize.
“The Rockpanel façade boards respond perfectly
to this method and are easy to install for maximum
efciency”, says Ludwig Hahussea from owner
and general contractor, Eiffage Construction.
What’s more, Rockpanel cladding is natural and
recyclable, making it a responsible choice for
buildings like the Hyperion with low-carbon
ambitions that consider the entire lifecycle of
the construction.
“Rockpanel cladding has excellent technical
characteristics, helps reduce the carbon impact
of the structure, and provides an aesthetic
appearance similar to metal cassettes with
abeautiful lacquer nish”, says Hahussea.
ROCKWOOL Group Annual Report 2021
27
Modern living
Lapinus products contribute to safety and comfort
in our daily life and help mitigate the effects of
climate change in urban areas.
Systems segment
Business update
Urbanisation and climate change are at the cen-
tre of our business strategy. With Rockow, an
underground stone wool buffer system that col-
lects, retains and inltrates rain water, we help
cities become more climate resilient. Fuelled
by a strong private and public sector focus on
more liveable cities, the Rockow business grew
substantially in 2021, with a record number of
projects and returning customers. To grow sales
and expand in new markets, Rockow is now
sold as a ROCKWOOL product line.
In our automotive product line, bre sales for
use in passenger car brake pads partially recov-
ered from 2020 lows. This is despite continuing
pressure on car production and sales caused
by COVID-19, microchip shortages, and global
supply chain challenges.
Urban acoustics consists of two product
groups: vibration control for train tracks and
acoustic fences. Both product groups grew
in 2021. Vibration control under train tracks
is important in urban areas to protect people
and architecture. While people nowadays
spend more time in the comfort of their home
and garden, there was a stronger demand for
acoustic fences to create a comfortable living
environment.
We develop and supply
innovative, stone wool-
based products used
in a wide range of
applications in three
core areas: urban climate
adaptation, automotive
and urban acoustics.
ROCKWOOL Group Annual Report 2021
28
Case study
Magic dust
If you’ve ever had to stomp the brakes of your
car to avoid an accident, you understand how
important brake pads are. How good they work
comes down to the materials they’re made of.
Between 20-25 different raw materials, each
with a unique function, go into a making a
single 120g passenger car brake pad (150g for
heavier electric cars). One of these materials
– found in more than half of all passenger car
brake pads produced today – is Lapinus stone
wool bres.
To the naked eye, the bres look like simple
grey dust. But adding just a few grams of
customised Lapinus stone wool bres to the
composition of a passenger car brake pad has
a positive effect on noise, vibrations and wear
so that the pads work when you need them
most.
That’s not all this magic dust does. The bres’
needle-like structure acts as reinforcement,
holding together the other materials – the
abrasives, llers, lubricants and binders –
providing mechanical strength to the pads’
surface friction material and stabilising friction
performance.
Less wear also means lower particulate matter
emissions, of which brake wear is a primary
source in transportation. This is a growing
health concern for car-heavy areas where
harmful materials can end up in nature. By
contrast, Lapinus bres are certied bio soluble,
and therefore not harmful to humans or the
environment.
With so many ingredients and a growing list
of performance demands – including greater
focus on health and environment – brake pad
manufacturers expect high quality and
consistency from material suppliers like Lapinus.
Every pad must deliver on its promise during its
lifetime, with no exceptions.
This means delivering bres according to a very
narrow specication year after year. To ensure
this, Lapinus uses internal and third-party
suppliers to test all its bres. Plus, researchers
at its Application Development Centre in the
Netherlands are constantly testing different
friction formulations to t changing market and
customer needs.
ROCKWOOL Group Annual Report 2021
29
A shared passion
for learning
Science and sailing at
SailGP event in Denmark
Laura Rugaard Kruse didn’t know what to expect
when she visited the Inspire Learning Zone in Aarhus,
at Denmark’s rst ever SailGP event.
As one of more than 1300 local children to visit the site during the global racing league’s
week-long stay in Aarhus, Laura is part of a record-breaking group to have experienced
the unique power of SailGP’s Inspire Learning programme.
But, having not sailed before, could Laura and her friends really understand a new sport
in just a few hours – and even be tempted to give it a try?
The programme provides youngsters between the ages of nine and 15 with an
exciting and memorable educational experience, both on and off the water, as the
event travels around the world.
ROCKWOOL Group Annual Report 2021
30
In Aarhus, the learning initiative saw record-
breaking numbers of children from more than
30 classes across Denmark visit the ROCKWOOL
SailGP site. They took part in a series of practical
learning sessions in science, technology,
engineering and mathematics (STEM) based
around four elements (wind, water, sun and earth),
showcasing both SailGP as well as the importance
of sustainability and protecting our oceans.
“Our learning programme here in Aarhus is
a collaboration with the City of Aarhus and it is
massive – the biggest yet”, said Tim Krat, SailGP
Inspire Manager for the Danish event.
“We had 34 school classes during the week to
experience modules around science,
sustainability and sailing. The goal is to help
young people engage with the science of sailing
in a dynamic, inspirational and engaging way”.
During the sessions, the students could learn about
buoyancy, sail power, levers and pulleys – as well as
marine biology – to understand how and why SailGP
is championing a world powered by nature –
even getting to design and build their own F50.
“It was really exciting and fun to visit SailGP, and
I learned a lot too. It has denitely made me
consider whether I should have a go at sailing for
real”, said Laura, who is from nearby Viby.
Teacher Jeppe Berghuis added: “My Craft and
Design students had a really good and educational
day at SailGP. My expectations for the experience
were fully met and we were a happy bunch
heading home in the afternoon”.
And when you’re creating a boat, who better to
ask for advice than someone who has spent her
whole life racing fast on the water – and even has
an Olympic gold medal to prove it?
Denmark SailGP Team presented by
ROCKWOOL athlete and newly-crowned
Olympic champion, Anne-Marie Rindom,
surprised the kids with a meet-and-greet
session, taking the opportunity to pass on some
of her top sailing tips – and even race them in
remote-controlled boats!
“I think the SailGP Inspire programme here at
the ROCKWOOL Denmark Sail Grand Prix is
absolutely awesome”, said Anne-Marie.
Having lived in Aarhus for the last decade,
Anne-Marie trains day in, day out at the nearby
Aarhus International Sailing Centre.
And like a true Olympian, her competitive spirit
couldn’t be dimmed even whilst racing a
remote-controlled boat around a paddling pool
against Laura and the other students – and they
tested Anne-Marie’s ability to the max.
“It was super cool to sail against Anne-Marie
Rindom… and win against her!” said Laura, with
a smile.
As part of Denmark SailGP Team, Anne-Marie
has seen rst-hand the impact that practical and
fun initiatives such as Inspire and the
#ROCKTheBoat Academy can have on kids and
young adults.
“I really wish I had this kind of opportunity when
I was a kid. The coolest part is the practical side
– to actually have the boats between your hands
is something else – not just learning about it, but
trying it out. It’s great that ROCKWOOL has
sponsored the #ROCKTheBoat Academy in
Aarhus and Copenhagen in both 2020 and 2021”.
Anne-Marie also brought along her Olympic gold
medal, which the children were able to take a closer
look at and grab a unique photo for the fridge.
“They loved to see the medal. Seeing an Olympic
gold isn’t something you get to do every day,
and I know that some of the kids have been
watching me sail on TV, so it’s inspiring for me
that they’re so stoked about it”, she added.
“Initiatives like SailGP Inspire and the
#ROCKTheBoat Academy are super important.
Learning in an interesting way as well as seeing
the real boats and sailors up close here in the
harbour, I’m sure that many of these kids will go
home and say to their parents that they want to
start going to their local sailing club. It makes a big
difference to the future of the sport in Denmark”.
ROCKWOOL Group Annual Report 2021
31
Sustainability is integral
to our business strategy.
Our performance as a Group is determined by
more than our nancial results. We also measure
our impact on society, the environment, and
the health and safety of our people. We do this
while investing in new ideas to grow our business
and safeguarding the data underpinning it all.
For more information regarding ROCKWOOL’s
sustainability and corporate responsibility
approach, please see our 2021 Sustainability
Report.
Sustainability goals progress
The United Nations Sustainable Development
Goals (SDGs) help steer ROCKWOOL’s
ambitions. The Group is committed to 10
of the 17 SDGs. We measure our progress
towards these goals in terms of handprint (the
positive impact of our products) and footprint
(minimising the impact of our operations).
For more information about this, see the
infographic on the next page.
Adding to the two 2022 intermediate
sustainability goals we met in 2020 (water
intensity and waste to landll), we met two
other intermediate goals (CO
2
intensity and
reclaimed waste) in 2021.
Specically, we reduced the CO
2
intensity of
our production by 16 percent, compared to
the intermediate goal of 10 percent. And we
added three new countries to the list of those
where we offer our Rockcycle
®
reclaimed
waste service, reaching a total of 17 countries
compared to the intermediate goal of 15
countries.
We continue to progress on our energy
efciency in owned (non-renovated) ofces
goal, completing the renovation of an
additional ve buildings and reaching 19
percent energy efciency improvement.
We experienced a negative trend on our
science-based emission reduction targets
compared to last year and ended marginally
worse than the 2019 baseline. This reects
a signicant increase in production volumes.
We continue to execute on our decarbonisation
plan, and this will positively impact on our
science based-targets in the coming period,
ensuring we are on track to meet our science-
based absolute emission reduction targets
while continuing to signicantly increase
production volumes.
In 2021, we improved the water intensity of our
production, achieving 15 percent reduction
compared to baseline while production waste
going to landll marginally improved compared
to last year at 51 percent improvement
compared to baseline.
REPORTING ON CORPORATE
SOCIAL RESPONSIBILITY
Reporting on Corporate Social
Responsibility cf. section 99a of
the Danish Financial Statements Act
We report separately on corporate
social responsibility in our 2021
Sustainability Report in accordance
with section 99a of the Danish
Financial Statements Act.
Reporting on management gender
composition cf. section 99b of the
Danish Financial Statements Act
We report separately on management
gender composition in accordance
with section 99b of the Danish
Financial Statements Act in our
2021 Sustainability Report.
Reporting on diversity cf. section
107d of the Danish Financial
Statements Act
We report separately on diversity in
accordance with section 107d of the
Danish Financial Statements Act in
our 2021 Sustainability Report.
Sustainability
2021 Sustainability Report.
www.rockwool.com/group/about-us/sustainability/
sustainability-report-2021/
ROCKWOOL Group Annual Report 2021
32
SDG-2
Enabling more efficient
food production
SDG-6
Enhancing water
efficiency in horticulture
SDG-6
Improving water
efficiency in factories
SDG-7
Enabling more energy-efficient
buildings and industry
SDG-7
Improving energy
efficiency in own
office buildings
SDG-8
Supporting local jobs
and economic growth
SDG-8
Zero fatalities and reducing
Lost Time Incidents rate
SDG-9
Enabling more durable
and fire-safe infrastructure
SDG-11
Supporting more affordable
housing and energy
SDG-12
Expanding ROCKWOOL's product recycling
take-back services to recycle stone wool
in our factories or in other industries
SDG-13
Enabling more carbon-efficient
buildings and industry
SDG-13
Reducing absolute Scope 1 and 2 GHG
emissions and CO
2
intensity in factories
SDG-12
Reducing landfill
waste from production
SDG-3
Reducing noise and creating
acoustically sound buildings
Virgin raw materials
and secondary
raw materials
from industry
Recycling to other
industries
and landfilling
Energy use
Product metric Sustainability goal
SDG-13
Reducing absolute Scope 3
GHG emissions
SDG-17
Engaging in effective
collaboration
Our value chain impact
ROCKWOOL Group Annual Report 2021
33
Employee developments
We treat our employees with respect, ensuring
a safe and healthy working environment. While
we did not have any fatalities in 2021, the Lost
Time Incidents rate increased 20 percent.
We take this very seriously and are pursuing
a number of measures to reverse this trend.
These include additional safety audits at those
factories where LTI rates are highest together
with extra focus on sharing best practices
across the Group.
Throughout the COVID-19 pandemic, our
priority has been the health and safety of our
employees, who have worked hard to keep
the business owing. Due to local restrictions
some of our employees were working from
home. For those who had to come to work we
have prioritised a safe working environment by
providing personal protection equipment and
guidelines for all employees.
It is our ambition to attract, retain and develop
employees with skills in areas that are relevant
for the continued growth and development
of the business, such as advanced production
technology, digitalisation, and innovation,
among others. We depend on our employees
continued learning and on their ability to
acquire new capabilities and skills in a fast and
agile way.
Research and development
Research and development (R&D) activities
continue to be critical for ROCKWOOL. Our
R&D functions are globally organised with
most activities placed at the headquarters in
Hedehusene, Denmark and selected other
locations around the world. R&D covers a
wide range of activities such as research
into materials, product development, new
or updated production technologies and
processes, among others. We collaborate
with universities as well as public and private
partners supporting research activities and
applying technology in practice.
The number of granted patents in 2021
increased by 105 and totalled 253 new patents,
which reects an activity level coming back to
normal after being signicantly impacted by the
COVID-19 pandemic in 2020.
Privacy and data protection
Privacy compliance is essential to gaining
and maintaining the trust of our employees,
customers and suppliers. A global data privacy
organisation with a local presence ensures
support and governance.
The privacy compliance programme includes
a privacy policy, a privacy manual and a
handbook with guidelines for selected business
areas as well as specialised templates and
privacy notices. New employees must complete
e-learning training as part of their on-boarding
process.
ROCKWOOL Group Annual Report 2021
34
Taxonomy eligibility
The EU Commission has established the
EU Taxonomy as a specic, science-based
classication system to identify economic
activities that are environmentally sustainable
and have a substantial positive climate and
environmental impact. It is intended to
help scale up investments in sustainable
activities and to increase market transparency
by introducing disclosure obligations on
companies and nancial market participants.
At ROCKWOOL we very much welcome this
initiative.
We have identied our 2021 glob al activities
that are covered by the Climate Delegated Act
in the EU Taxonomy. The detailed legislation
for the remaining Taxonomy objectives is not
nalised. As 2021 is the rst year of reporting,
the interpretation and implementation of
the new classication system are still under
development. Therefore, we have taken a
conservative approach in dening Taxonomy-
eligible activities.
Taxonomy-eligible activities
ROCKWOOL’s share of 2021 net sales
associated with Taxonomy-eligible activities
was 85 percent. These activities were related to
climate mitigation within the category 3.5
“Manufacture of energy efciency equipment
for buildings”. The dominant activity is the
production of insulation products. Sales from
the Systems segment have also been reported
as Taxonomy-eligible where the products
contribute as a key component in an external
wall or roong system.
Taxonomy-eligible OPEX
The share of operating expenses considered
Taxonomy-eligible was 76 percent and primarily
relates to direct cost of sales of the Taxonomy-
eligible activities. A proportionate part of
logistic and maintenance costs was also
reported as Taxonomy-eligible.
Research and development costs related to
Taxonomy-eligible projects were included.
Taxonomy-eligible CAPEX
ROCKWOOL’s Taxonomy-eligible share of
investments was 80 percent and primarily
relates to construction of insulation factories
and equipment, capacity expansion related to
Taxonomy-eligible activities as well as safety
and environmental investments.
2021
Sales OPEX CAPEX
Taxonomy-eligible activities
Manufacture of energy efciency equipment for buildings (3.5) 85% 76% 80%
Taxonomy-non-eligible activities or activities not covered
Non-eligible activities 15% 24% 20%
Sum of Activities 100% 100% 100%
Taxonomy-eligible Taxonomy-non-eligible
Sales
85%
OPEX
76%
CAPEX
80%
ROCKWOOL Group Annual Report 2021
35
Climate-related nancial disclosures
Reviewing climate-related risks and
opportunities is an integrated strategic focus
for the majority of the Group’s business unit
management teams and a xed part of business
unit Managing Director’s quarterly business
reviews.
For identied risks, business unit or Group
function leadership propose mitigating actions,
which are evaluated to ensure effective Group
level risk management. For more information
related to the sustainability governance
structure visit www.rockwool.com/group/.
The annual Sustainability Report details
ROCKWOOL’s approach and performance
relative to the Group’s sustainability goals as
well as the extent to which our actions live up to
the Paris Agreement on Climate Change goals.
ROCKWOOL has publicly supported the
recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)
since 2019. The relevant sections for TCFD
reporting in this Annual Report and in our
Sustainability and Remuneration Reports are
outlined in the table.
Task Force on Climate-related Financial Disclosures (TCFD) reporting recommendations
Recommendation Our disclosure in brief Learn more
Governance Group Management approves and provides feedback to the portfolio of programmes and
targets within the sustainability area and reports to the Board of Directors. The Group has
established an Enterprise Risk Management (ERM) Committee, a Group Sustainability
Committee, a Group Operations & Technology Sustainability Committee, and an Integrity
Committee. The committees oversee the work with climate-related risks and opportunities
and secure leverage and integration of sustainability across the Group. The purpose is also
to track progress on strategic sustainability initiatives and goals. Sustainability measures are
used in the long-term incentive schemes for the CEO.
• Sustainability Report, p. 6.
• Details about the commit-
tees can be found at www.
rockwool.com/group/
about-us/sustainability.
• Remuneration Report p. 6.
Disclose the organisation's governance around
climate-related risks and opportunities.
Strategy We prioritised the SDGs on which to focus and set the eight sustainability goals after
consulting with key internal and external stakeholders as well as evaluating our core
competencies. Our annual strategy process examines how best to address the opportuni-
ties and challenges we face in making progress on our sustainability priorities – and renes
implementation plans.
• Sustainability Report, p. 6.
Disclose the actual and potential impacts
of climate-related risks and opportunities
on the organisation's businesses, strategy
and nancial planning, where such
information is material.
Risks The ERM Committee is responsible for reviewing and updating the internal risk manage-
ment framework and for implementing related processes. The ERM Committee focuses on
the top risks identied for the Group. The risk management process is applied both at
company level and at asset level. Every year, all business unit Managing Directors and their
Finance Directors must quantify the nature, likelihood and potential impact of different risks,
including issues such as climate change and quantify the predicted nancial impact. All risks,
including climate-related risks, must have a mitigation plan in place with agreed timelines.
Climate-related opportunities are closely linked to the Group’s commercial strategy relating
to the sale of more carbon emission abating products. As such these opportunities are
integrated into the different busines unit strategies, which are updated annually.
• Risk management, p. 39.
Disclose how the organisation identies,
assesses and manages climate-related
risks.
Metrics and targets Our annual Sustainability Report discloses our approach; 2022, 2030 and 2034 goals; key
performance indicators; and performance in line with our goals and the UN Sustainable
Development Goals. We disclose a comprehensive set of three-year comparable quantita-
tive data for energy, carbon, including Scope 1, 2 and 3 emissions, water, air emissions,
waste and safety. We have also disclosed detailed information to CDP on our greenhouse
gas emissions and approach to climate change management since 2007.
• Sustainability Report, pp.
28-39.
Disclose the metrics and targets used to
assess and manage relevant climate-relat-
ed risks and opportunities, where such
information is material.
ROCKWOOL Group Annual Report 2021
36
Systems and processes
The Board of Directors is responsible for
ensuring that the Group’s risk exposure
is consistent with its targeted risk prole.
The Board also evaluates that appropriate
awareness and management processes are in
place. Managing the risk process is part of the
Chief Financial Ofcer’s area of responsibility
and includes providing regular updates to the
Audit Committee and Board of Directors.
All Group functional heads and Managing
Directors of our subsidiaries must ensure that a
risk review within their areas of responsibility is
conducted at least once a year; and that risks
are discussed, described, scored for severity
and likelihood, and quantied in terms such as
predicted nancial impact.
The Group function or subsidiary proposes
appropriate mitigating actions for identied
risks, which are studiously evaluated to ensure
effective risk management at Group level. The
Group has an Enterprise Risk Management
Committee, consisting of members from the
Group functions. The committee is responsible
for reviewing and updating the internal risk
management framework and for implementing
related processes. The committee meets
quarterly to decide on the top risks to be
included in the quarterly updates to the Board.
The Audit Committee selects deep dives
into the Group’s top risks, which the “risk
owner” presents for the Risk Committee,
Group Management and nally to the Audit
Committee and the Board of Directors. With
these systems and processes, the Group
identies and mitigates the risk. The objective
is to ensure that any residual risks are at an
acceptable level.
Key risks
Climate risks, supply disruptions, competition
law compliance and cyber threats are among
the risks that would have the highest potential
to impact ROCKWOOL Group if the risks were
to materialise.
Carbon emission regulation
Description
As part of an energy-intensive industry,
ROCKWOOL faces specic climate-related
risks on both the regulatory and technological
fronts. Key innovations in our melting
technology and multiple other energy-saving
initiatives will contribute to our achieving the
decarbonisation that is reected in the new
science-based targets we announced in 2020.
These targets are veried and approved by the
Science Based Targets initiative (SBTi). Read
more about our SBTi commitment in our 2021
Sustainability Report.
Regulation can represent both a major
opportunity and risk: an opportunity from
positively inuencing the demand for carbon
emission abating solutions such as insulation;
and a risk, as regulation can increase industry’s
nancial burden relating to carbon emissions.
The Group’s 15 European factories are all
included in the EU Emission Trading Scheme
(ETS) Phase IV from 2020-2030. The nancial
impact of being under the ETS is expected
to be limited. However, in the longer-term, a
more ambitious European climate policy and
associated regulatory framework could lead to
a risk of increasing carbon cost.
Risk trend - stable
Mitigation
We closely monitor regulatory framework
developments to identify both risks and
opportunities early in the process.
At regular intervals we assess the EU ETS's
nancial impact on our business. For the period
2020-2030, the mineral wool sector has been
granted EU carbon leakage, which signicantly
increases the amount of free allowances
allocated to each factory.
In addition, our ambitious decarbonisation
strategy will reduce our absolute CO
2
emissions signicantly, as we are increasingly
using low carbon-intensive energy sources.
Therefore, while we expect certain factories will
experience an allowance decit in this period,
the Group level allowance stock will cover this
decit.
Physical climate change risk
Description
With a large number of manufacturing facilities
and capital-intensive production, ROCKWOOL
is subject to risks associated with the increase
in severity and frequency of extreme weather
events. Such events can include ash oods
and ooding from rivers overowing.
The risk is highly unlikely for the majority of our
production facilities. The risk is greatest at one
of our German factories, which is located near
a large river. There are also risks, though to a
lesser extent, at our factories in Canada, the
United States, and China.
Overall, however, the current risk is assessed
to be very low as only parts of a given site
would be ooded even in a worst-case
scenario event. If a production facility would
be partially ooded for a number of hours or
days, it would likely disrupt or halt production,
could potentially damage nished product
stock that was not relocated in time, or
potentially damage installations, buildings, or
infrastructure.
Risk trend - stable
Mitigation
When planning browneld expansions or
greeneld new sites, we consider forecasts and
risk modelling of future natural disaster risks
such as oods, hurricanes, earthquakes, or
ROCKWOOL Group Annual Report 2021
39
similar. In Germany, for example, the new line
was built on a level one metre higher than the
highest ood level of the river Danube in 1999,
which was seen as a 100-year event.
Supply disruptions
Description
With a global production footprint, there
is a risk that supply disruption or freight
shortage could affect production and thereby
delivery to customers. Disruption may result
from unavailability of raw materials, natural
catastrophes or global network disruptions.
Pandemics such as COVID-19 may also have a
signicant effect. Should the risk materialise it
could potentially impact deliveries to customers
or lead customers to switch suppliers for
shorter or longer periods.
The likelihood of property damage leading
to signicant product delivery disruptions
is considered to be low. However, global
COVID-19 challenges causing lack of freight
capacity and the unusually high building sector
activity have shown that supply disruptions can
happen. Production plans have been reshufed,
and in most cases, it has been possible to
produce with alternative solutions and thereby
full customer orders.
The alternative solutions can sometimes end as
a good opportunity to nd new processes or
suppliers and thereby increase competition and
lower input costs.
Risk trend – up
Mitigation
ROCKWOOL seeks to ensure that its
inventory level can counter any interruptions
in production. The Group’s Global Sourcing
and Procurement department closely monitors
the supply situation. Geographic location and
dependence on key raw material suppliers are
evaluated to ensure that we strike the right
balance between exibility, exposure and costs.
Competition law compliance
Description
Guided by our values and Code of Conduct,
ROCKWOOL Group competes in a fair manner
on prices, quality, customer service, innovative
products and more. The Group has zero
tolerance for any compliance violations.
Non-compliance with national and international
competition and antitrust laws could lead
to nes and claims as well as damage to the
ROCKWOOL brand and reputation.
Risk trend - stable
Mitigation
We maintain a strong Group-wide compliance
framework with access to ad-hoc advice from
lawyers in Group Legal Affairs as well as from
internal local based lawyers in the Group. A
variety of measures are provided to relevant
employees to equip them with sufcient
knowledge to make day-to-day business
decisions in accordance with applicable
competition and antitrust laws as well as
internal policies.
A special focus in recent years has been to
provide solid guidance on the collection and
use of market intelligence in order to stay
competitive without compromising competition
law principles. Also, specic guidance has been
made with respect to project sales, which are
used in most businesses.
Our compliance programme includes a
competition law compliance manual, interactive
training seminars and e-learning. In addition,
competition law compliance is always part of
internal audits.
New employees must complete the e-learning
training as part of their onboarding process,
including guidance on compliance in general.
Cyber threats
Description
All major companies including ROCKWOOL
have seen an increase in the frequency and
severity of cyberattack attempts to business
operations. As ROCKWOOL depends on IT
systems, networks and related processes to run
day-to-day business, the Group is vulnerable to
system outages.
With digitalisation of business processes, a
cyberattack or non-availability of IT systems
will have increasing nancial and reputational
consequences for our business and the
ROCKWOOL brand. Preserving business
continuity and safeguarding sensitive business
data and critical assets against the global cyber
threat is extremely important to ROCKWOOL,
and therefore a top priority for operational
excellence and further digital investments.
Risk trend - up
Mitigation
Key IT objectives include preventing digital
theft of intellectual property; limiting and
quickly rectifying operational disruptions; and
protecting the rights of external and internal
data subjects. Also high on the IT security
Risk management (continued)
ROCKWOOL Group Annual Report 2021
40
agenda is protecting consumers against
misinformation or misuse of ROCKWOOL
brands.
The Group’s IT strategy therefore comprises a
continued effort to strengthen the protection
against cyberthreats. It involves investments in
cyber protection practices and tools regarding
core IT infrastructure, factory IT and operations
technology, and user devices that access
ROCKWOOL’s systems.
Furthermore, the IT strategy focuses on
reducing the human element risk of IT
by continually improving the Group’s
authentication practices and usage of
credentials, and continuous education of users.
The Group's IT department systematically
mitigates risks based on internal assessments
as well as the ndings of external IT auditors
and the evaluations of external experts. The
activities carried out by the Group and its
partners are expected to keep the risk of losing
the operational stability and integrity of all
digital services rendered for internal or external
use at an acceptable low level.
ROCKWOOL Group Annual Report 2021
41
Branching out into Japan: ROCKWOOL acquires Japanese
stone wool manufacturer, Bansyo Holdings.
Growth and lower emissions: Jens joins the governor of the
Leningrad region and Danish ambassador to Russia to celebrate
the expansion and switch to electric melting technology at the
Vyborg, Russia factory.
West Virginia factory grand opening: More than 100 guests
from the community, business and government, celebrated
the opening of the factory, which currently employs around
130 people.
New leader joins the Group: Anders Espe Kristensen joins
ROCKWOOL as SVP of Systems Division and a member of
Group Management.
The year in pictures
Some of the important moments from 2021.
ROCKWOOL Group Annual Report 2021
42
Inspiring the next generation: Science and sailing keep
the attention of 1300 kids in Aarhus at Denmark SailGP’s
Inspire Learning programme.
On stage at COP26: Jens with Tracie Pearce (L, Santander Bank)
and Jennifer Layke (R, World Resources Institute) discuss how
to start a global building renovation wave.
Innovation: Danish Society of Engineers recognised ROCKWOOL
for its patented fuel-exible melting technology, lowering CO
2
emissions in Denmark by 70 percent.
Safety culture: Rockfon’s Johor, Malaysia factory reaches
1000 days with zero lost-time injuries (LTI).
Long-term value creation: ROCKWOOL recognised by
EY Denmark for contributing to reducing the building
sector’s climate impact and investments in decarbonisation.
The future of food: The Dutch Embassy in Copenhagen hosted
Grodan, Wageningen University and members of the food industry
to discuss how greenhouse growers can help meet UN SDGs.
ROCKWOOL Group Annual Report 2021
43
We act with integrity and in accordance
with our values, rules and regulations.
ROCKWOOL’s governance principles and structure are designed to
ensure alignment with long-term shareholder interests and to enable
prudent management of the Group in accordance with relevant national
and international regulations as well as applicable corporate governance
recommendations.
The Board of Directors appoints the Registered Directors, consisting of the
CEO and CFO, who undertake the day-to-day management of ROCKWOOL.
ROCKWOOL Group Annual Report 2021
44
Shareholders and general meeting
The Annual General Meeting (AGM) is the
supreme body of the corporate governance
structure and elects the Board of Directors
as well as independent auditors. The AGM
approves any changes to the articles of
association and to the capital structure,
including any issuance of new shares.
The shareholders have the ultimate authority
over the company and can exercise their rights
by passing resolutions at general meetings.
Resolutions are adopted by simple majority of
votes, unless otherwise provided by legislation
or by the articles of association.
ROCKWOOL is not aware of shareholder
agreements containing pre-emption rights
or restrictions on voting rights. There is an
agreement among members of the founding
Kähler family to meet regularly to discuss their
interests in the company, including items at the
AGM, but there is no requirement for them to
vote jointly.
Board of Directors
The Board of Directors today consists of eight
members, six of whom are elected by the
shareholders at general meetings. Of these, four
members are deemed independent according
to the Danish Recommendations on Corporate
Governance. Two members are elected by the
employees, for a period of four years, pursuant
to the Danish Companies Act.
In 2021, Søren Kähler retired from the Board of
Directors and was replaced by Carsten Kähler.
Employee-elected René Binder Rasmussen has
left the company and has resigned from the
Board of Directors. Therefore, there will only be
two employee-elected board members until the
next ordinary election takes place in March 2022.
The roles and responsibilities of the Board of
Directors are dened in the Business Procedure
for the Board of Directors. The members of the
Board of Directors are elected by the general
meeting for a period of one year and may be re-
elected. The members of the Board of Directors
are non-executive members in accordance with
the Danish Companies Act.
The Board of Directors is responsible for the
overall purpose and strategy and shall ensure
proper organisation of ROCKWOOL. The Board
of Directors also ensures that the business is
developing on track toward agreed short- and
long-term goals. The Board of Directors formally
approves the Code of Conduct and the Audit
Committee ensures compliance hereof in the
Group.
Once a year, the Board of Directors performs
an overall self-evaluation focusing on the
composition and competencies of the Board
and the results achieved. The Board of Directors
has decided that an external consultancy should
facilitate the self-evaluation every third year.
In 2021, the Board of Directors conducted the
annual evaluation with external facilitation.
Based on this evaluation, the Board concluded
that its present composition is appropriate and
sufcient for it to perform its tasks and support
long-term value creation for the shareholders.
As for the special competences of each Board
member, please refer to the CVs listed on the
website, www.rockwool.com/group/aboutus/
rockwool-group/people/.
The Board of Directors held four board meetings
and a strategy session in 2021. The meeting
agenda is set according to the annual cycle of
the Board, thus ensuring that the strategic and
operational policy framework of the Group is
reviewed and up to date. Information about
Board member meeting attendance can be
found on pp. 48-49.
The Board of Directors has established a
Chairmanship, an Audit Committee, a Nomination
Committee and a Remuneration Committee. The
committees report to the Board of Directors.
Registered Directors
The Registered Directors are the CEO and
CFO, who are registered as directors with the
Danish Business Authority. The Registered
Directors are responsible for the day-to-day
management of the company and compliance
with the guidelines and recommendations set
forth by the Board of Directors. The Registered
Directors’ responsibility covers organisation of
the company as well as allocation of resources,
producing and implementing strategies and
policies and ensuring timely reporting to the
Board of Directors.
Group Management is formed by the Registered
Directors together with six senior vice presidents
responsible for division management and Group
functions.
ROCKWOOL Group Annual Report 2021
45
Registered Directors
Chairmanship
Nomination
Committee
Remuneration
Committee
Audit
Committee
Board of Directors
Shareholders and general meeting
Remuneration of the Board of Directors and
the Registered Directors
Remuneration of the Board of Directors and the
Registered Directors is carried out in accordance
with the Remuneration Policy as adopted by the
Annual General Meeting. The remuneration policy
is available at www.rockwool.com/group.
The remuneration of the Board of Directors
amounts to 1 MEUR. The specic Board
remuneration and the remuneration components
granted to each Registered Director can be
found in the 2021 ROCKWOOL Remuneration
Report at www.rockwool.com/group.
Board Chairmanship and Committees
The Board of Directors has established four
substructures.
The Chairmanship
The Board of Directors has established a
Chairmanship consisting of the Chairman and
the Deputy Chairman. They prepare the Board
meetings.
Audit Committee
The Board of Directors has appointed an Audit
Committee consisting of three members. The
majority of its members are independent.
The Audit Committee monitors and reports on
the statutory audit, accounting and audit policies
and the nancial and sustainability reporting
processes including auditor independence.
The committee also decides which policies
or processes, if determined by the Board of
Directors or the Audit Committee, should be
subject to thorough evaluation.
The Audit Committee monitors compliance with
applicable legislation, standards and regulations
and the internal controls and risk management
systems.
The Audit Committee also monitors potential
cases from the whistle-blower system.
Remuneration Committee
The Board of Directors has appointed a
Remuneration Committee consisting of two
members of the Board of Directors: The
Chairman, who is considered not to be
independent, and the Deputy Chairman, who is
considered independent.
The Remuneration Committee ensures that the
company maintains a remuneration policy for
the members of the Board of Directors, the
Registered Directors and senior executives,
including compliance hereof.
Corporate governance (continued)
Our governance model
ROCKWOOL Group Annual Report 2021
46
Rockpanel Woods cladding on the KA Pegasus school in Ostend, Belgium.
The Remuneration Committee makes proposals
for the remuneration of the Board of Directors
and the Registered Directors and reviews and
approves remuneration for other members of
Group Management.
The Remuneration Committee also ensures
the preparation of the annual Remuneration
Report. The Remuneration Report will be
subject to a non-binding advisory vote from
the shareholders. The Remuneration Report
can be found on the website.
Nomination Committee
The Board of Directors has appointed a
Nomination Committee consisting of two
members of the Board of Directors: The Chairman,
who is considered not to be independent, and the
Deputy Chairman, who is considered independent.
The Nomination Committee identies and
recommends to the Board of Directors persons
who are qualied to become members of the
Board of Directors and Registered Directors.
The Nomination Committee further recommends
removal of such persons, if relevant. The
Nomination Committee reviews and suggests
changes to relevant corporate policies, including
corporate governance.
Recommendations on Corporate Governance
The Board of Directors has discussed and reviewed
the general recommendations for Danish listed
companies as provided by the Danish Committee
on Corporate Governance. ROCKWOOL complies
with all but two of the recommendations.
With respect to recommendation 3.3.2, to
publish information about the number of
shares, options, warrants or similar in the
company, and other Group companies, owned
by each member of the Board of Directors, the
company considers this to be a private matter.
It is ROCKWOOL’s judgement that disclosure of
such information will not add additional value
for shareholders and other stakeholders. Board
member remuneration does not include
share-based elements.
The recommendation 3.4.2, that a majority of
the members of board committees should be
independent, is not applied in the
Remuneration and Nomination Committees.
The Board of Directors nds that the
committees can perform their functions in a
prudent manner even if the majority of the
members are not independent.
A detailed review of ROCKWOOL’s position on
each of the recommendations and a description
of the internal control and risk management
system relating to nancial reporting can be
found in the statutory report on corporate
governance prepared pursuant to section
107b of the Danish Financial Statements Act
at www.rockwool.com/group/about-us/
corporate-governance/.
ROCKWOOL Group Annual Report 2021
47
Board of Directors
Thomas Kähler
Chairman
Elected to the Board: 2008
Other positions related to the company
Member of the Chairmanship, Member of the Audit
Committee, Chairman of the Remuneration and
Nomination Committee, Member of the Kähler
Family Meeting.
Thomas Kähler participated in all Board, Audit and
Remuneration and Nomination Committee meetings
during 2021.
Carsten Bjerg
Deputy Chairman
Elected to the Board: 2011
Other positions related to the company
Member of the Chairmanship, Member of the
Remuneration and Nomination Committee.
Positions in other Danish companies
Chairman of the Boards of Hydrema Holding ApS;
Arminox Investment A/S (and one fully-owned
subsidiary); Bjerringbro-Silkeborg Håndbold A/S;
Bogballe Investment A/S (and one fully-owned
subsidiary); CapHold Guldager ApS (and one
fully-owned subsidiary); and Robco Engineering
Investment A/S (and one fully-owned subsidiary).
Member of the Boards of Agrometer Investment A/S
(and three fully-owned subsidiaries); TCM Group A/S*
(and one fully owned subsidiary), Aarhus Universitet
and COWI Holding A/S.
Carsten Bjerg participated in all Board and
Remuneration and Nomination Committee meetings
during 2021.
Rebekka Glasser Herlofsen
Elected to the Board: 2020
Other positions related to the company
Chairman of the Audit Committee.
Other positions
Chairman of the Board of Norwegian Hull Club and
Handelsbanken Norge, Norway; Chairman of the
Council, DNV, Norway; Member of the Boards of
Equinor ASA and Wilh. Wilhelmsen Holding ASA,
Norway; Member of the Boards and Chairman of
Audit Committees of SATS ASA, BW Offshore ASA
and Klaveness Combination Carriers ASA, Norway;
Member of the Nomination Committee of Orkla ASA,
Norway.
Rebekka Glasser Herlofsen participated in all Board
and Audit Committee meetings during 2021.
Carsten Kähler
Elected to the Board: 2021
Other positions related to the company
Member of the Kähler Family Meeting.
Following his election, Carsten Kähler participated in
all Board meetings during 2021.
ROCKWOOL Group Annual Report 2021
48
Andreas Ronken
Elected to the Board: 2016
CEO of Alfred Ritter GmbH &Co. KG.
Other positions
Member of Advisory Board of Melitta Group GmbH
& KG, Minden, Germany.
Andreas Ronken participated in all Board meetings
during 2021.
Jørgen Tang-Jensen
Elected to the Board: 2017
Other positions related to the company
Member of the Audit Committee.
Positions in other Danish companies
Chairman of the Board of Strøjer Tegl A/S (and two
fully-owned subsidiaries).
Member of the Boards of VKR Holding A/S; VILLUM
FONDEN and Maj Invest Holding A/S (and two fully-
owned subsidiaries).
Other positions
Chairman of the Board of Tænketanken Europa (Think
Tank Europe).
Jørgen Tang-Jensen participated in all Board and
Audit Committee meetings during 2021.
Connie Enghus Theisen
Elected to the Board: 2006
Director Stakeholder Engagement, ROCKWOOL
International A/S.
Connie Enghus Theisen participated in all Board
meetings during 2021 except one meeting.
Christian Westerberg
Elected to the Board: 2018
Design Manager, ROCKWOOL International A/S.
Other positions related to the company
Member of the Board of the ROCKWOOL Foundation.
Christian Westerberg participated in all Board
meetings during 2021.
*listed companies
For further information about independence and
competencies of the board members, please refer
to www.rockwool.com/group/about-us/rockwool-
group/people/.
ROCKWOOL Group Annual Report 2021
49
Group Management
Jens Birgersson
President and Chief
Executive Ofcer (CEO)
Member of the Registered Directors
(in Danish: Direktionen).
Member of Group
Management: 2015
Other positions
Chairman of the Board of Randers Reb
International A/S, Denmark and member of
the Board of dormakaba Group, Switzerland.
Kim Junge Andersen
Senior Vice President,
Chief Financial Ofcer (CFO)
Member of the Registered Directors
(in Danish: Direktionen).
Member of Group
Management: 2016
Other positions
Member of the Board of FORCE Technology,
Denmark.
Bjørn Rici Andersen
Senior Vice President,
Group Operations & Technology
Member of Group
Management: 2018
Volker Christmann
Senior Vice President,
Head of Insulation Central Europe
Member of Group
Management: 2015
Other positions related to the company
Member of the Board of the ROCKWOOL Foundation.
Other positions
President of BuVEG Bundesverband energieefziente
Gebäudehülle e.V., Germany (federal association of
energy-efcient building envelope). Member of the
Board of H+H International A/S, Denmark.
50
ROCKWOOL Group Annual Report 2021
Anders Espe Kristensen
Senior Vice President,
Head of Systems Division
Member of Group
Management: 2021
Gilles Maria
Senior Vice President,
Head of Insulation South West Europe
& Insulation Asia
Member of Group
Management: 2007
Henrik Frank Nielsen
Senior Vice President,
Head of Insulation North East Europe
& Russia
Member of Group
Management: 2007
Mirella Vitale
Senior Vice President,
Group Marketing, Communications
& Public Affairs
Member of Group
Management: 2016
ROCKWOOL Group Annual Report 2021
51
Shareholder information
ROCKWOOL shares
ROCKWOOL International A/S is listed on
Nasdaq Copenhagen in two share classes;
ROCKWOOL A and ROCKWOOL B. The class B
share is included in multiple indices including
the leading Danish stock index Nasdaq OMX
C25, MSCI Global Standard, and STOXX
®
Europe 600 Construction & Materials.
In 2021, the class B share price increased by 25
percent while the class A share increased by 15
percent. That compares with a 22 percent
increase in the benchmark index STOXX
®
Europe 600 Construction & Materials and a 17
percent increase in the Nasdaq OMX C25 index
during 2021.
The ofcial share price on 31 December 2021
was 2859 DKK (B share) and 2379 DKK (A share).
The combined market capitalisation at the end
of the year was 56 295 MDKK.
Total share capital amounts to anominal value
of 216 207 090 DKK (2020: 219 749 230 DKK), of
which nominally 111 555 580 DKK (2020:
112 316 270 DKK) is class A share capital, and
nominally 104 651 510 DKK (2020: 107 432 960
DKK) is class B share capital. The nominal value
has been reduced due to cancellation of shares
purchased under the share buyback programme
ended in January 2021.
Each class A share of a nominal value of 10 DKK
entitles the holder to 10 voting rights and each
class B share of a nominal value of 10 DKK entitles
the holder to one voting right.
The company had 31 867 (2020: 27 950)
registered shareholders on 31 December 2021.
By the end of 2021, 22 percent (2020: 22
percent) of the shares were owned by
shareholders located outside Denmark. In terms
of voting capital, seven percent (2020: seven
percent) was located outside Denmark.
For a list of shareholders holding more than ve
percent of the share capital or the votes, please
refer to p. 111.
Capital structure and dividend
Management regularly assesses whether the
ROCKWOOL International A/S capital structure
is in the interests of the company and its
stakeholders. The overall objective is to ensure
continued development and strengthening of
the company’s capital structure that supports
long-term protable growth.
It is the intention of ROCKWOOL International
A/S that the net debt should be maximum one
time the EBITDA, with due regard to the
company’s long-term nancing requirements.
Votes per shareholder categoryOwnership per shareholder category
Share price development 2021
(DKK)
The ROCKWOOL Foundation Own shares Private investors with less than 5%
Institutional investors with less than 5% Other shareholders with more than 5%
OMX C25ROCKWOOL B STOXX
®
Euro 600 Construction & Materials
01/01
2021
01/02
2021
01/03
2021
01/04
2021
01/05
2021
01/06
2021
01/07
2021
01/09
2021
01/10
2021
01/11
2021
01/12
2021
01/01
2022
01/08
2021
6%
23%
0%
42%
29%
28%
0%
48%
7%
17%
3500
2500
2000
3000
ROCKWOOL Group Annual Report 2021
52
Stock market information
2021 2021 2020 2019 2018 2017
(EUR) DKK DKK DKK DKK DKK
Earnings per share 14 104 86 97 91 73
Dividend per share 4.7 35.0 32.0 32.0 29.9 24.1
Cash ow per share 20 147 150 136 140 114
Book value per share 111 823 707 719 638 569
Share capital (million) 29 216 220 220 220 220
Price per A share 320 2 379 2 075 1 439 1 430 1 594
Price per B share 384 2 859 2 296 1 585 1 697 1 752
Market cap (million) 7 570 56 295 47 062 33 072 34 168 36 367
Number of own shares 56 228 56 228 403 912 72 894 75 865 206 840
Number of A shares of 10 DKK (10 votes) 11 155 558 11 155 558 11 231 627 11 231 627 11 231 627 11 231 627
Number of B shares of 10 DKK (1 vote) 10 465 151 10 465 151 10 743 296 10 743 296 10 743 296 10 743 296
The Dividend policy is to pay out a stable
dividend that is at least one-third of net prot
after tax.
After assessing the outlook for the economic
cycle, investment plans and structural business
opportunities, and considering the dividend
policy, the company can further decide to
initiate share buy-backs to adjust the capital
structure.
At the Annual General Meeting on 6 April 2022,
the Board of Directors will propose a dividend
of 35.00 DKK per share for the nancial year
2021 (2020: 32.00 DKK). The dividend payment
occurs three banking days after the Annual
General Meeting.
Investor relations
As a listed company ROCKWOOL International
A/S has dened a policy for its activities relating
to the ROCKWOOL International A/S' shares
("the shares"). The aim of this policy is to:
Ensure that the capital market has an accurate
picture of the earnings potential of the shares
by communicating relevant, correct, balanced,
and timely information to market participants.
Ensure that ROCKWOOL International A/S
complies with all relevant rules and
regulations as laid out in the Nasdaq
Copenhagen Rules for issuers of shares as
well as applicable Danish and EU legislation
for publicly listed companies.
Ensure fair and transparent rules for the
trading of the shares by ROCKWOOL
International A/S itself and by persons
considered insiders.
Strive to ensure that ROCKWOOL
International A/S is seen as an honest,
accessible, reliable, and responsible company
by the capital markets.
Maintain broad coverage by both domestic
and foreign equity analysts.
Be knowledgeable, responsive and proactive
in our investor communication maintaining
a fair balance between expectations and
performance.
ROCKWOOL International A/S' shares are
generally categorised within Construction and
Materials and are currently covered by 17 equity
analysts, 10 of which are based outside
Denmark. For further details regarding analyst
coverage including recommendations and
consensus, please see www.rockwool.com/
group/about-us/investors/consensus-and-
analysts/.
All investor relations materials and investor
relation contact information are available to
investors at www.rockwool.com/group/
about-us/investors/.
Financial calendar 2022
9 February
Annual Report
for 2021
18 May
Report on the rst
quarter of 2022
23 November
Report on the rst
nine months of 2022
6 April
Annual General
Meeting
24 August
Report on the rst
half-year of 2022
ROCKWOOL Group Annual Report 2021
53
Financial
performance
Strong sales development with a growth of 19
percent in local currency. Protability remained
solid despite soaring ination in the second half
of the year, achieving a 13.0 percent full-year
EBIT margin.
The Paper Tower in Silkeborg, Denmark, constructed with ROCKWOOL insulation products.ROCKWOOL Group Annual Report 2021
54
Global sales development
The economic rebound is rapidly unfolding,
substantially driven by post-pandemic demand,
government-funded economic recovery
and stimulus packages, and a strong focus
on climate action. The high activity levels
in the construction and other sectors have
strained the overall economy causing supply
chain disruptions and inationary pressure
on production materials, energy prices and
logistics.
The labour market has changed since the
pandemic and many areas face workforce
shortages in addition to scarcity of key
raw materials. Despite these challenges,
ROCKWOOL increased production output to
meet increasing customer demand, with sales
exceeding 3 BEUR for the rst time.
Net sales for 2021 reached 3088 MEUR, an
increase of 19 percent in both local currencies
and reported gures, which is slightly better
than the latest announced expectation. Towards
the end of the year, sales price increases were
higher than initially planned and added to the
higher growth. In a few markets additional
growth was hampered by capacity constraints
as the increase in customer demand came
faster than anticipated. Production capacity
towards the end of the year increased and most
manufacturing facilities produced at maximum
capacity during the Christmas holidays to
secure seasonal inventory for future demand.
Compared to the outlook announced in the
Annual Report 2020, the economic recovery
came faster than expected. Increased
construction activities, high demand for non-
combustible insulation products and good sales
performance in the Systems segment increased
sales more than initially anticipated.
Regional sales development
Sales in Western Europe reached 1834 MEUR,
an increase of 16 percent in local currencies and
reported gures. After a modest rst quarter,
all major markets ended having double-digit
sales growth. The growth was well supported
by the new production line in Germany. Sales in
the United Kingdom and Italy reached record
high levels supported by government support
schemes for energy efciency renovation.
Sales in Eastern Europe reached 562 MEUR, up
28 percent in local currencies and 25 percent
in reported gures mainly due to negative
currency impact from the Russian rouble. All
markets saw double-digit growth rates with
especially Russia and Romania performing very
well.
In the rest of the world, sales reached 692
MEUR, an increase of 21 percent in local
currencies and 20 percent in reported gures.
After a modest rst quarter, North American
sales activities picked up, particularly in the
United States, resulting in a solid double-digit
full year sales growth. The growth continues
to be driven by demand for non-combustible
building insulation as well as technical insulation
products and growing media solutions. The
new manufacturing facility in West Virginia
came online in July and has already contributed
signicantly to meeting the growing demand,
beneting as well from its near ideal location to
service customers in the Mid-Atlantic region.
In Asia, India performed well with double-digit
growth throughout the year. Sales in China and
many southeast Asian markets continued to be
somewhat subdued by the COVID-19 pandemic,
though ending with solid growth. The growth
was mainly driven by strong demand for non-
combustible technical and building insulation
products and engineered bres for the
automotive industry. The acquisition of the
stone wool manufacturing facility of Bansyo
Holdings in Japan had only a minor impact.
Group protability
The soaring ination on raw materials, logistic
and energy prices led to an EBIT decrease
of six percent in fourth quarter, relative to
same quarter in 2020. That notwithstanding,
we achieved a 13.0 percent full-year EBIT
margin, which is only slightly lower than the
latest guidance, as sales price increases and
productivity gains did not fully match the
accelerated ination.
Operational efciency improved as we
continued prioritising cost savings activities
during the year. This entailed a focus on driving
efciency, while still running at high capacity
levels and investing in new competencies,
digitalisation and growth initiatives.
Net sales development
Growth MEUR
Net sales 2020 2 602
Organic development 18.8% 489
Currency translation adjustment -0.1% -3
Net sales 2021 18.7% 3 088
EBIT development
Growth MEUR Margin
EBIT 2020 338 13.0%
Earnings from operation 18.0% 61 -0.2%
Currency translation adjustment 0.5% 2 0.2%
EBIT 2021 18.5% 401 13.0%
ROCKWOOL Group Annual Report 2021
55
60
80
Q1
100
120
40
1.3%
3.3%
900
600
700
800
Q1 Q3 Q4Q2
EBIT & EBIT margin
(MEUR)
500
13.3%
11.2%
13.2%
400
Q3 Q4
2020 2021
Quarterly sales & sales growth (reported)
(MEUR)
These efforts helped deliver a stable Group protability for
the full year.
EBITDA increased 15 percent to 602 MEUR with an EBITDA
margin of 19.5 percent. This is a strong achievement in a year
with unexpected input cost developments, bringing two
new facilities online (new production line in Germany and
the West Virginia factory), and a change in pricing approach,
which impacted our ability to increase prices sufciently in
the second half of the year.
In 2021, depreciation amounted to 201 MEUR, an increase
of 17 MEUR compared 2020 due to depreciation of the
investments in new capacity especially in Germany and the
United States as well as in digital solutions.
EBIT for the year reached 401 MEUR, resulting in an EBIT
margin of 13.0 percent, at level with last year.
There is no direct comparison to the initial outlook
announced in February 2021 on EBIT margin, as the outlook
for the full year was based on situations with countries still
partly in lock down due to the COVID-19 pandemic. The
speed of the economic rebound took hold during the second
quarter of 2021. From there the scenario changed from
careful optimism to a situation where balancing demand and
capacity was an issue in ROCKWOOL, which changed the
underlying assumptions. The full year EBIT margin ended
slightly lower than the outlook announced later in 2021.
Net nancial costs amounted to 9 MEUR, a decrease of
5 MEUR compared to 2020. The decrease mainly related
to lower fees in connection with the share buy-back
programme, interest and higher currency gains.
Tax on prot for the year amounted to 90 MEUR compared
to 74 MEUR in 2020. The effective tax rate increased slightly
to 23.0 percent (2020: 22.8 percent) mainly due to lower
recognition of tax grants.
Group prot after tax totalled 303 MEUR, a 52 MEUR
increase, which we consider to be a satisfactory result taking
the rapidly increasing ination into consideration.
Balance sheet and equity
Net working capital ended at 306 MEUR, an increase of
93 MEUR in reported gures compared to 2020, primarily
due to increased inventory, trade receivables and other
receivables and only partly offset by an increase in trade
payables. As a percentage of sales, net working capital was
9.9 percent compared to 8.2 percent in 2020.
Total assets at the end of 2021 amounted to 3080 MEUR,
an increase of 336 MEUR compared to 2020 mainly from
increased tangible assets, inventories and trade receivables
partly offset by lower cash.
Equity of the Group totalled 2394 MEUR as of 31 December
2021 compared to 2092 MEUR in 2020, corresponding to an
equity ratio of 78 percent. Equity was mainly affected by the
prot for the year and currency translation adjustments.
The proposed dividend for 2021 is 35.00 DKK per share, up
3.00 DKK from 2020.
Q2
-16.1%
-2.1%
20.3%
-5.1%
19.0%
2020 2021
14.3%
33.5%
The high construction activity resulted in a solid double-
digit growth but put a strain on the entire economy causing
inationary pressure.
12.3%
14.3%
10.0%
14.9%
ROCKWOOL Group Annual Report 2021
56
200
100
0
400
300
Acc. investments excl. acquisitions
(MEUR)
2020 2021
16
18
22
20
14
Return on invested capital (ROIC)
(%)
2020 2021
Q4Q3Q2
YTD Q4
302
Q1
YTD Q2 YTD Q3
218
Q1
150
82
16.9
19.7
19.3
Invested capital
Return on invested capital increased in 2021, mainly due to
increased prot, reaching 18.8 percent compared to 17.6
percent in 2020. Invested capital amounted to 2294 MEUR
compared to 1961 MEUR in 2020. The increase is mainly
related to higher tangible assets and higher net working
capital.
Cash ow and investments
At the end of 2021, the Group had a net cash positive
position amounting to 76 MEUR, down 19 MEUR. In addition,
the Group had unused committed credit facilities of 600
MEUR at year-end.
Cash ow from operating activities decreased, from
438 MEUR in 2020 to 426 MEUR in 2021. The increase in
operating prot was offset by the negative impact from
more cash tied up in net working capital.
Capital expenditure excluding acquisitions reached 302
MEUR, a decrease of 41 MEUR compared to 2020. The
investment level ended slightly below our latest expectation.
Compared to our expectation announced in February 2021,
a number of smaller investment projects were postponed
from 2021 to 2022 due to high business activity levels. The
largest individual investments in 2021 relate to the factory
projects in the United States (West Virginia), the electric
melter conversion in Norway, the new Rockfon line in Poland
and the relocation of one of the factories in China.
In early 2021, ROCKWOOL acquired the assets from Tripplex
Acoustic, a small Danish producer of acoustics solutions, and
a minority stake in Akuart A/S, an acoustic design company.
The businesses are now part of Systems segment. In July
2021, ROCKWOOL acquired a stone wool production facility
north of Tokyo from Bansyo Holdings, which is now part of
our Insulation segment. The consideration for the businesses
totalled 8 MEUR.
Free cash ow amounted to 116 MEUR, an increase of
40 MEUR compared to 2020, primarily due to lower
investments.
Cash ow from nancing activities ended at negative 194
MEUR mainly from dividend payments of 93 MEUR and a
100 MEUR full repayment of the drawings on our credit
facilities.
In December 2021, ROCKWOOL acquired the minority
stake in ROCKWOOL Firesafe Insulation (Gaungzhou) Co
Ltd., ROCKWOOL Malaysia Sdn. Bhd., and ROCKWOOL
(Thailand) Limited from the Investment Fund for Developing
Countries in Denmark.
243
343
96
176
20.2
17.7
17.7
17.6
18.8
ROCKWOOL Group Annual Report 2021
57
Global sales development
In Q4 2021, ROCKWOOL Group generated
sales of 842 MEUR, an increase of 17 percent in
local currencies compared to Q4 2020. Foreign
exchange rates had a positive impact of 2.9
percent, mainly from the Russian rouble and
the U.S. and Canadian dollars, resulting in an
increase of 20 percent in reported gures.
The sales growth in the quarter came from both
volume and sales price increases. By end of
2021, sales prices increased almost 10 percent
compared to the beginning of the year. This
raised the aggregated sales price increase
for the Group for the full year to above three
percent.
Regional sales development
Sales in Western Europe ended at 490 MEUR,
an increase of 15 percent in local currencies in
Q4 2021 compared to Q4 2020. In reported
gures sales increased 16 percent. Especially
market demand in Italy, Germany, the United
Kingdom, Denmark and Sweden increased, as
many started to benet from stimulus initiatives
towards energy efcient renovations.
In Q4 2021, net sales in Eastern Europe
amounted to 167 MEUR, an increase of 36
percent in local currencies and 40 percent in
reported gures compared to Q4 2020. The
Russian rouble exchange rate recovery had a
positive impact in Q4 2021. Especially Russia,
Poland and Romania performed well during the
quarter.
Sales in the rest of the world reached 185 MEUR
in Q4 2021, an increase of 10 percent in local
currencies compared to Q4 2020. In reported
gures, sales in Q4 2021 increased 16 percent.
Overall sales in North America improved and
showed solid growth, both in the insulation and
systems businesses. Asia started to bounce
back from the pandemic and saw double-digit
sales growth in most countries.
2021 2020
MEUR
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Income statement
Net sales 671 778 797 842 649 583 670 700
Operating income 672 779 799 844 651 583 672 702
Raw material and production material costs 222 276 289 329 206 187 215 237
Delivery costs and indirect costs 91 107 117 123 92 81 93 97
Other external costs 48 51 51 55 55 39 47 43
Personnel costs 172 185 185 191 173 172 172 177
Operating costs 533 619 642 698 526 479 527 554
EBITDA 139 160 157 146 125 104 145 148
Depreciation, amortisation and write-downs 49 49 52 51 45 46 45 48
EBIT 90 111 105 95 80 58 100 100
Income from investments in associated companies - - - 1 - - - 1
Financial items -2 -2 -2 -3 - -5 -2 -7
Prot before tax 88 109 103 93 80 53 98 94
Tax on prot for the period 20 25 24 21 19 13 21 21
Prot for the period 68 84 79 72 61 40 77 73
EBITDA margin 20.7% 20.6% 19.7% 17.2% 19.2% 17.8% 21.7% 21.1%
EBIT margin 13.3% 14.3% 13.2% 11.2% 12.3% 10.0% 14.9% 14.3%
Statement of comprehensive income
Prot for the period 68 84 79 72 61 40 77 73
Exchange rate adjustments of foreign subsidiaries 32 6 11 29 -68 12 -48 -4
Change in pension obligation - - - 28 - - - -3
Hedging instruments, value adjustments - -2 2 - 2 - - -
Tax on comprehensive income - - -1 -1 - - - 2
Total comprehensive income 100 88 91 128 -5 52 29 68
Quarterly follow-up
ROCKWOOL Group Annual Report 2021
58
Group protability
Q4 2021 was impacted signicantly by the unex-
pectedly high and rapid inationary pressure on
almost all raw materials and especially on energy
and more specically, natural gas. Productivity
gains and sales price increases did not fully offset
the soaring ination, resulting in a decrease in
Q4 margins.
EBITDA in Q4 2021 reached 146 MEUR, a de-
crease of two percent with an EBITDA margin
of 17.2 percent compared to 21.1 percent in Q4
2020.
Depreciation in Q4 2021 amounted to 51 MEUR,
an increase of 3 MEUR mainly from the new man-
ufacturing facility in West Virginia, USA.
EBIT in Q4 2021 reached 95 MEUR, down six per-
cent compared to Q4 2020. EBIT margin ended
at 11.2 percent, 3.1 percentage points below Q4
2020, reecting rapidly increasing input costs in
energy, material and logistics.
Business segments
External sales in Q4 2021 in Insulation segment
amounted to 621 MEUR, an increase of 23
percent in local currencies and 26 percent in
reported gures compared to Q4 2020. All
major businesses contributed to the solid sales
performance.
EBIT in the Insulation segment reached 69
MEUR resulting in an EBIT margin of 9.4
percent, down 1.6 percentage points compared
to Q4 2020, driven by high input costs.
In the Systems segment, quarterly net sales
reached 221 MEUR in Q4 2021, an increase in
local currencies of four percent and six percent
in reported gures compared to Q4 2020.
Rockfon and Rockpanel showed good growth,
while Grodan was impacted by distributors
reducing their strategic inventories.
EBIT in the Systems segment reached 26 MEUR
in Q4 2021, a decrease of 27 percent on the
back of a very strong Q4 2020. EBIT margin
was 11.8 percent compared to 16.9 percent
in Q4 2020. All businesses suffered from
the increased input costs, which sales price
increases did not fully offset.
2021 2020
MEUR Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Cash ow statement
EBIT 90 111 105 95 80 58 100 100
Adjustments for amortisation, depreciation and
write-downs
49 49 52 51 45 46 45 48
Adjustments of non-cash operating items 1 1 1 -8 1 -1 6 1
Change in net working capital -97 -2 27 -10 -79 40 27 39
Cash ow from operations before nancial items and
tax
43 159 185 128 47 143 178 188
Cash ow from operating activities 29 145 167 85 13 126 161 138
Cash ow from investing activities -83 -68 -74 -85 -110 -80 -72 -100
Free cash ow -54 77 93 0 -97 46 89 38
Cash ow from nancing activities 2 -97 -44 -55 68 -67 -30 -63
Net cash ow -52 -20 49 -55 -29 -21 59 -25
Business segments
Insulation segment:
External net sales 498 568 604 621 483 438 502 491
Internal net sales 74 84 91 105 73 61 74 94
EBIT 59 69 78 69 56 40 76 64
EBIT margin 10.3% 10.6% 11.2% 9.4% 10.0% 8.0% 13.2% 11.0%
Systems segment:
External net sales 173 210 193 221 166 145 168 209
EBIT 31 42 27 26 24 18 24 36
EBIT margin 17. 6% 20.1% 14.4% 11.8% 14.6% 12.4% 14.3% 16.9%
Geographical segments
Western Europe 417 468 459 490 395 349 411 420
Eastern Europe and Russia 105 129 161 167 105 105 120 119
North America, Asia and others 149 181 177 185 149 129 139 161
Total net sales 671 778 797 842 649 583 670 700
Quarterly follow-up
ROCKWOOL Group Annual Report 2021
59
Income statement
1 January – 31 December
MEUR Note 2021 2020
Net sales 2.1 3 088 2 602
Other operating income 6 6
Operating income 3 094 2 608
Raw material costs and production material costs 1 116 845
Delivery costs and indirect costs 438 363
Other external costs 205 184
Personnel costs 2.2 733 694
Operating costs 2 492 2 086
EBITDA 602 522
Amortisation, depreciation and write-downs 3.4, 3.5 201 184
EBIT 401 338
Income from investments in associated companies 1 1
Financial income 5.1 10 8
Financial expenses 5.1 19 22
Prot before tax 393 325
Tax on prot for the year 6.1 90 74
Prot for the year 303 251
Prot for the year attributable to:
Non-controlling interests - -
Shareholders of ROCKWOOL International A/S 303 251
Earnings per share: 5.7
Earnings per share of 10 DKK (1.3 EUR) 14.05 11.54
Diluted earnings per share of 10 DKK (1.3 EUR) 14.02 11.51
Statement of comprehensive income
1 January – 31 December
MEUR Note 2021 2020
Prot for the year 303 251
Items that will not be reclassied to income statement:
Actuarial gains and losses of pension obligations 3.6 28 -3
Tax on other comprehensive income -2 4
Items that may be subsequently reclassied to income statement:
Currency adjustment from translation of entities 78 -108
Hedging instruments, value adjustments - 2
Tax on other comprehensive income - -2
Other comprehensive income 104 -107
Comprehensive income for the year 407 144
Comprehensive income for the year attributable to:
Non-controlling interests - -
Shareholders of ROCKWOOL International A/S 407 144
ROCKWOOL Group Annual Report 2021
62
Balance sheet
Assets – as at 31 December
MEUR Note 2021 2020
Goodwill 102 96
Software 9 13
Customer relationships 34 39
Other intangible assets 14 21
Software in progress 17 12
Total intangible assets 3.1 176 181
Buildings and sites 860 637
Plant and machinery 680 439
Other operating equipment 16 22
Tangible assets in progress 273 534
Total tangible assets 3.2 1 829 1 632
Right-of-use assets 3.3 61 44
Shares in associated companies 8 6
Long-term deposits and receivables 3 10
Deferred tax assets 6.1 52 54
Total nancial assets 63 70
Non-current assets 2 129 1 927
Inventories 4.1 317 216
Trade receivables 4.2, 5.2 307 247
Other receivables 5.2 98 60
Prepayments 24 15
Income tax receivable 6.1 39 38
Cash 5.2, 5.3 166 241
Current assets 951 817
Total assets 3 080 2 744
Equity and liabilities – as at 31 December
MEUR Note 2021 2020
Share capital 5.6 29 29
Currency translation adjustments -134 -212
Proposed dividend 102 94
Retained earnings 2 398 2 178
Hedging -1 -1
Equity attributable to shareholders of ROCKWOOL International A/S 2 394 2 088
Non-controlling interests - 4
Total equity 2 394 2 092
Deferred tax liabilities 6.1 51 47
Pension obligations 3.6 35 66
Lease liabilities 3.3 44 27
Provisions 3.7 16 18
Bank loans and other loans 5.2, 5.4 17 -
Non-current liabilities 163 158
Short-term portion of bank loans and other loans 5.2, 5.4 9 100
Bank debt 5.2, 5.3 1 1
Trade payables 5.2 283 184
Lease liabilities 3.3 19 18
Provisions 3.7 8 8
Income tax payable 6.1 26 25
Other payables 5.2 177 158
Current liabilities 523 494
Total liabilities 686 652
Total equity and liabilities 3 080 2 744
ROCKWOOL Group Annual Report 2021
63
Cash ow statement
Accounting policies
The consolidated cash ow statement is compiled using
the indirect method on the basis of EBIT. The cash ow
statement shows ows from operating, investing and
nancing activities for the year, as well as cash and cash
equivalents at the beginning and at the end of the year.
Cash ows from operating activities comprises operat-
ing prot before nancial items adjusted for non-cash
items and changes in working capital.
Cash ows from investing activities comprise payments
relating to acquisition and sale of companies, intangible
and tangible assets and other asset investments.
Cash ows from nancing activities comprise proceeds
from borrowings, repayment of lease liabilities and
debt, payment of dividends, sale and purchase of own
shares, transactions with non-controlling interests and
increases of the share capital.
Cash available includes cash less short-term bank debt.
Comments
Individual items in the cash ow statement cannot be
directly deduced from the consolidated balance sheet.
MEUR Note 2021 2020
EBIT 401 338
Adjustments for amortisation, depreciation and write-downs 3.4 201 184
Adjustments of non-cash operating items 4.3 -5 7
Changes in net working capital 4.3 -82 27
Cash ow from operations before nancial items and tax 515 556
Finance income etc. received 10 8
Finance costs etc. paid -17 -22
Taxes paid -82 -104
Cash ow from operating activities 426 438
Purchase of tangible assets -295 -358
Received investment grants - 19
Purchase of intangible assets -7 -4
Business acquisitions, net of cash -8 -19
Cash ow from investing activities -310 -362
Free cash ow 116 76
Dividend paid -93 -94
Share buy-back programme -3 -77
Purchase of own shares -4 -3
Sale of own shares 1 2
Transactions with non-controlling interests -8 -
Repayment of lease liabilities 3.3 -21 -20
Repayment of non-current receivables 8 4
Proceeds from borrowings 26 152
Repayment of current debt -100 -56
Cash ow from nancing activities -194 -92
Net cash ow -78 -16
Cash available 1/1 240 269
Exchange rate adjustments on cash available 3 -13
Cash available 31/12 5.3 165 240
Unutilised, committed credit facilities 600 630
ROCKWOOL Group Annual Report 2021
64
Statement of changes in equity
Accounting policies
Dividend is included as a liability at the time of adop-
tion by the Annual General Meeting. Dividend that is
expected to be paid for the year is shown separately in
the equity.
Sale and purchase of, as well as dividends on own
shares are recognised under retained earnings in the
equity. The reserve for currency translation adjustments
consists of exchange rate differences that occur when
translating the subsidiaries’ nancial statements from
their functional currency into EUR.
Hedging adjustments comprise changes in the fair val-
ue of hedging transactions that qualify for recognition
as cash ow hedges and where the hedged transaction
has not yet been realised.
Non-controlling interests
Non-controlling interests are recognised at the minor-
ity’s share of the net assets. The difference between
the costs and the non-controlling interests’ share of the
total carrying amount including goodwill is transferred
from the minority interests’ share of the equity to the
equity belonging to the shareholders of ROCKWOOL
International A/S.
As per 22 December 2021, the minority share in ROCK-
WOOL Firesafe Insulation (Gaungzhou) Co Ltd., ROCK-
WOOL Malaysia Sdn. Bhd. and ROCKWOOL (Thailand)
Limited was acquired from the Investment Fund for
Developing Countries, Denmark.
Shareholders of ROCKWOOL International A/S
Non-
controlling
interests
Total
equityMEUR
Share
capital
Currency
translation
adjustments
Proposed
dividend
Retained
earnings Hedging Total
Equity 1/1 2021 29 -212 94 2 178 -1 2 088 4 2 092
Prot for the year - - 102 201 - 303 - 303
Other comprehensive income - 78 - 26 - 104 - 104
Comprehensive income for the year - 78 102 227 - 407 - 407
Share buy-back programme - - - -3 - -3 - -3
Purchase of own shares - - - -4 - -4 - -4
Sale of own shares - - - 1 - 1 - 1
Expensed value of Restricted Share Units (RSUs) issued - - - 2 - 2 - 2
Transactions non-controlling interests - - - -4 - -4 -4 -8
Dividend paid - - -94 1 - -93 - -93
Equity 31/12 2021 29 -134 102 2 398 -1 2 394 - 2 394
Equity 1/1 2020 29 -104 94 2 096 -1 2 114 4 2 118
Prot for the year - - 94 157 - 251 - 251
Other comprehensive income - -108 - 1 - -107 - -107
Comprehensive income for the year - -108 94 158 - 144 - 144
Share buy-back programme - - - -77 - -77 - -77
Purchase of own shares - - - -3 - -3 - -3
Sale of own shares - - - 2 - 2 - 2
Expensed value of Restricted Share Units (RSUs) issued - - - 2 - 2 - 2
Dividend paid - - -94 - - -94 - -94
Equity 31/12 2020 29 -212 94 2 178 -1 2 088 4 2 092
ROCKWOOL Group Annual Report 2021
65
Note 1 Basis of preparation
1.1 Critical accounting estimates and judgements 68
1.2 General accounting policies 68
1.3 New and amended standards and interpretations 69
1.4 Reporting under the ESEF Regulation 69
Note 2 Operating prot
2.1 Net sales and segmented accounts 71
2.2 Personnel costs 72
2.3 Long-term incentive programmes 73
Note 3 Invested capital
3.1 Intangible assets 76
3.2 Tangible assets 77
3.3 Leases 78
3.4 Amortisation, depreciation and write-downs 79
3.5 Impairment tests 80
3.6 Pension obligations 81
3.7 Provisions 83
Note 4 Working capital
4.1 Inventories 85
4.2 Trade receivables 85
4.3 Other cash ow notes 86
Note 5 Capital structure and nancing
5.1 Financial income and Financial expenses 88
5.2 Financial risks and instruments 88
5.3 Cash available 90
5.4 Loans 90
5.5 Own shares 91
5.6 Share capital 91
5.7 Earnings per share 91
Note 6 Other
6.1 Tax 93
6.2 Commitments and contingent liabilities 95
6.3 Related parties 95
6.4 Auditor’s fee 95
6.5 Events after the reporting date 95
6.6 Group companies 96
Notes
67
ROCKWOOL Group Annual Report 2021
Note 1
Basis of preparation
1.1 Critical accounting estimates
and judgements 68
1.2 General accounting policies 68
1.3 New and amended standards
and interpretations 69
1.4 Reporting under the ESEF Regulation 69
1.1 Critical accounting estimates
and judgements
The preparation of the consolidated nancial state-
ments requires Management to make accounting
estimates and assumptions that have a signicant effect
on the application of policies and reported amounts of
assets, liabilities, income, expenses and related disclo-
sures. The most signicant accounting estimates and
judgements are presented below.
The application of the Group’s accounting policies may
require Management to make judgments that can have
a signicant effect on the amounts recognised in the
consolidated nancial statements. When determining
the carrying amount of some assets and liabilities it
requires Management to make judgments, estimates
and assumptions concerning future events.
The estimates and underlying assumptions are based
on professional experience, historical experience and
various other factors that Management considers ap-
propriate under the given circumstances. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Changes in estimates may be
necessary if there are changes in the circumstances
on which the estimate was based, or if more detailed
information becomes available. Such changes are rec-
ognised in the period in which the estimate in question
is revised.
ROCKWOOL has monitored the COVID-19 pandemic
development and the related risks during the year.
Overall, the pandemic has not impacted the critical
accounting estimates and risks applied in the consoli-
dated nancial statement.
Below are the accounting estimates and judgements,
which Management considers signicant to the prepa-
ration of the consolidated nancial statements:
Accounting estimates
– Impairment testing (note 3.5)
– Deferred tax assets and uncertain tax positions
(note 6.1)
Judgements
– Expected lifetime for tangible assets (note 3.2)
The accounting policies are described in each of the
specic notes to the nancial statements, which also
include additional description of the most signicant
accounting estimates and judgements.
1.2 General accounting policies
The Annual Report for ROCKWOOL International A/S
has been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the
EU and further requirements in the Danish Financial
Statements Act.
The nancial year for the Group is 1 January – 31 De-
cember 2021.
Group Accounts
The consolidated nancial statements comprise ROCK-
WOOL International A/S and the entities in which the
company and its subsidiaries hold the majority of the
voting rights.
Notes
68
ROCKWOOL Group Annual Report 2021
68
Notes
The consolidated nancial statements have been
prepared as a consolidation of the parent company’s
and the individual subsidiaries’ nancial statements, de-
termined according to the Group’s accounting policies,
and with elimination of dividends, internal revenue and
expenditure items, internal prots as well as intercom-
pany balances and intercompany shareholdings.
Besides shares, capital investments in subsidiaries
include long-term loans to subsidiaries if such loans
constitute an addition to the shareholding.
Translation of foreign currency
The Annual Report has been presented in Euro (EUR)
which is the Group’s presentation currency. Each compa-
ny in the Group determines its own functional currency.
Transactions in foreign currency are translated using
the exchange rate at the transaction date or a hedged
rate. Monetary items in foreign currency are translated
using the exchange rates at the balance sheet date.
Accounts of foreign subsidiaries are translated using the
exchange rates at the balance sheet date for balance
sheet items, and the periodic average exchange rates
for items of the income statement.
All exchange rate adjustments are recognised in the
income statement under nancial items, apart from the
exchange rate differences arising on:
– Conversion of equity in subsidiaries at the beginning
of the nancial year using the exchange rates at the
balance sheet date;
– Conversion of the prot for the year from average ex-
change rates to exchange rates at the balance sheet
date;
– Conversion of long-term intercompany balances that
constitute an addition to the holding of shares in
subsidiaries;
– Conversion of the forward hedging of capital invest-
ments in subsidiaries;
– Conversion of capital investments in associated and
other companies; and,
– Prot and loss on effective derivative nancial instru-
ments used to hedge expected future transactions
These value adjustments are recognised directly under
other comprehensive income.
1.3 New and amended standards
and interpretations
Implementation of new or changed accounting
standards and interpretations
Effective from 1 January 2021, the Group has imple-
mented the following amendments to standards (IAS
and IFRS):
– IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: IBOR
reform phase 2.
The adoption of the new or amended standards has not
impacted our consolidated nancial accounts for 2021
and is not anticipated to have a signicant impact on
future periods.
New and amended standards and interpretation not
yet adopted
IASB has issued new or amended accounting standards
and interpretations that have not yet become effective
and have consequently not been implemented in the
consolidated nancial statements for 2021. The Group
expects to adopt the accounting standards and inter-
pretations when they become mandatory.
None of the new or amended standards or interpreta-
tions are expected to have a signicant impact on the
consolidated nancial statements.
1.4 Reporting under
the ESEF Regulation
The Commission Delegated Regulation (EU) 2019/815
on the European Single Electronic Format (ESEF Reg-
ulation) has introduced a single electronic reporting
format for the annual nancial reports of issuers with
securities listed on the EU regulated markets.
The ESEF Regulation sets out the annual nancial
reports shall be disclosed using the XHTML format and
that the primary consolidated nancial statements shall
be tagged using inline eXtensible Business Reporting
Language (iXBRL).
IXBRL tags shall comply with the ESEF taxonomy, which
is included in the ESEF Regulation and developed based
on the IFRS taxonomy published in the IFRS Foundation.
As part of the tagging process nancial statement line
items are marked up to elements in the ESEF taxono-
my. If a nancial statement line item is not dened in
the ESEF taxonomy, an extension to the taxonomy is
created. Extensions have to be anchored in the ESEF
taxonomy, except for extensions which are subtotals.
The Annual Report submitted to the Danish Finan-
cial Supervisory Authority (The Ofcially Appointed
Mechanisms) consists of the XHTML document together
with some technical les all included in a ZIP le named
213800QRC7LNX935OZ09-2021-12-31-en.zip.
ROCKWOOL Group Annual Report 2021
69
Note 2
Operating prot
2.1 Net sales and segmented accounts 71
2.2 Personnel costs 72
2.3 Long-term incentive programmes 73
Sales per business segment
(MEUR)
Insulation Systems
EBIT margin
13.0%
Average
number of FTEs
11 689
Reported sales
increase
18.7%
70
ROCKWOOL Group Annual Report 2021
70
500
1000
1500
2000
2500
3000
0
2021
2020
Accounting policies
Net sales
The Group produces and sells a range of non-combus-
tible stone wool insulation products, including solutions
for ceiling systems, ventilated facades, friction and
water management and stone wool substrate solutions
for the professional horticultural.
Sales are recognised when control of the products has
transferred to the customer, being when the products
are delivered to the customer and the risk has been
transferred.
The products are often sold with retrospective volume
discounts based on aggregate sales over a 12-month
period. Revenue from these sales is recognised based
on the price specied in the contract, net of the esti-
mated volume discounts. Accumulated experience is
used to estimate and provide for the discounts, using
the expected value method.
The sales include no element of nancing as the sales
are made with credit terms of normally 30-60 days
consistent with market practice.
A receivable is recognised when the products are de-
livered as this is the point in time that the consideration
is unconditional because only the passage of time is
required before the payment is due.
Segmented accounts
Group Management has determined the business seg-
ments for the purpose of assessing business performance
and allocating resources. Primarily segments are based on
products and thermal performance, as Systems segment
is primarily dened as non-thermal insulation products.
Nearly all external sales consist of sales of products.
Segmental data is stated for business areas and
geographical areas. The split by business areas is in
accordance with the Group’s internal reporting.
The segmental data is presented according to the same
principle as the consolidated nancial statements. The
segmental EBIT includes net sales and expenditure in-
cluding non-recurring expenditure operationally related
to the segment.
Comments
ROCKWOOL Group operates in two business segments
based on products: Insulation segment and Systems
segment. The information is based on the management
structure and internal management reporting to Group
Management and constitutes the reportable segments.
Headquarters costs are allocated to the business
segments based on allocation keys used in the internal
management reporting. These allocation keys are
reassessed annually based on planned activity in the
segments. Intangible and tangible assets and related
amortisation/depreciation are not fully allocated to
business segments as all stone wool production is done
in the Insulation segment. Financial income and expens-
es, and income taxes are managed at Group level and
are not allocated to business segments.
Notes
2.1 Net sales and segmented accounts
Business segments and sales reporting
Insulation
segment
Systems
segment Eliminations
ROCKWOOL
Group
MEUR 2021 2020 2021 2020 2021 2020 2021 2020
External net sales 2 291 1 914 797 688 - - 3 088 2 602
Internal net sales 354 302 - - -354 -302 - -
EBIT 275 236 126 102 - - 401 338
EBIT margin 10.4% 10.7% 15.9% 14.8% - - 13.0% 13.0%
Financial items and income
from associated companies
- - - - - - -8 -13
Tax on prot for the year - - - - - - -90 -74
Prot for the year - - - - - - 303 251
Goods transferred at a point
in time
2 291 1 914 797 688 - - 3 088 2 602
Non-current asset additions 295 326 58 44 - - 353 370
Geographical segments
Net sales
Intangible and
tangible assets
MEUR 2021 2020 2021 2020
Western Europe 1 834 1 575 911 914
Eastern Europe and Russia 562 449 394 379
North America, Asia and others 692 578 700 520
Total 3 088 2 602 2 005 1 813
11 689
18.7%
ROCKWOOL Group Annual Report 2021
71
Comments
Remuneration of Group Management (key management
personnel) complies with the principles of the Group's
Remuneration Policy.
The variable part of the total remuneration, measured
as short-term incentive maximum and annual long-term
incentive grant, can be maximum 50 percent of the
total remuneration. The short-term incentive (bonus) is
dependent on achievement of individual targets and
targets for the Group's nancial performance, which are
annually approved by the Remuneration Committee. In
addition, pension and other benets are offered in line
with market practice with a total value not exceeding 20
percent of base salary.
The individual remuneration elements of each Regis-
tered Director are disclosed in the annual Remuneration
Report.
In 2021, termination costs of less than 1 MEUR are in-
cluded in the remuneration to Group Management. No
termination costs are included in 2020.
Comments
Internal net sales from the Insulation segment to
the Systems segment are at arms’ length prices. The
Insulation segment includes among others interior
building insulation, façade insulation, roof insulation
and industrial and technical insulation. The Systems
segment includes acoustic ceilings and walls, cladding
boards, engineered bres, noise and vibration control,
and horticultural substrates.
In 2021, no write-down was recognised. In 2020,
write-down of software was recognised affecting both
segments. For additional information please refer to
note 3.4.
The geographical net sales information is based on the
location of the customers, while the information regard-
ing the geographical assets distribution is based on the
physical placement of the assets.
The domestic sales in Denmark are in the range of 3-4
percent (2020: 2-3 percent) of the Group’s net sales.
The domestic intangible and tangible assets in Den-
mark amount to 172 MEUR (2020: 159 MEUR).
No customers exceed 10 percent of the Group’s net
sales neither this year nor last year. In Germany, France
and the United States net sales amounts to between 10-
20 percent of the Group’s total net sales in both 2021
and 2020. In no other country does net sales exceed 10
percent of the Group’s total net sales.
In 2021 and 2020, intangible and tangible assets in the
United States and Germany exceeded 10 percent of the
Group's total intangible and tangible assets, and so did
the intangible and tangible assets in Poland in 2020.
Notes
2.1 Net sales and segmented
accounts (continued)
2.2 Personnel costs
Personnel costs
MEUR 2021 2020
Wages and salaries 614 580
Expended value of RSUs issued 4 2
Pension Cost 31 30
Other social security cost 84 82
Personnel costs 733 694
Average number of employees 11 689 11 626
Remuneration to Group Management, Registered Directors and Board of Directors
Personnel costs include the following to Group Management, Registered directors and Board of Directors:
MEUR 2021 2020
Group Management
Salaries and other benets to Group Management 7 6
Value of expensed RSU costs or fair value adjustments to Group Management 1 1
Pension cost to Group Management 1 1
Total to Group Management 9 8
Hereof Registered Directors
Hereof remuneration to Registered Directors 3 3
Hereof value of expensed RSU cost or fair value adjustments to Registered Directors 1 1
Hereof pension cost to Registered Directors - -
Total to Registered Directors 4 4
Board of Directors
Remuneration to Board of Directors 1 1
Total remuneration to Registered Directors and Board of Directors 5 5
ROCKWOOL Group Annual Report 2021
72
Notes
2.3 Long-term incentive programmes
Stock option programme
Stock options outstanding at year-end have the following exercise periods and exercise prices:
Time of grant Exercise period
Exercise
price (EUR)
Number of stock
options 2021
Number of stock
options 2020
2013 23.09.2016 - 22.09.2021 121 - 6 550
2015 20.03.2018 - 19.03.2023 103 4 200 8 500
4 200 15 050
In both 2021 and 2020, all remaining stock options belonged to senior executives.
Development in outstanding stock options
2021 2020
Number of
stock options
Average
exercise
price (EUR)
Number of
stock options
Average
exercise
price (EUR)
Outstanding stock options 1/1 15 050 110 34 925 100
Exercised 10 850 114 19 875 117
Outstanding stock options 31/12 4 200 103 15 050 110
Accounting policies
Two different share-based incentive programmes have
been established: A stock option programme and a re-
stricted share programme (RSUs). Both programmes are
classied as equity based, as they are settled in shares.
Due to local rules, a minor part of both programmes
is given as phantom shares and is classied as cash-
based, as they are settled in cash. The programmes are
offered to Group Management and other senior execu-
tives. The incentive programmes are part of the variable
part of the remuneration and follows the Group’s
Remuneration policy. Participation in the programmes
are at the Remuneration Committees discretion and
no individual has a contractual right to participate or
receive any guaranteed benet.
Stock options
On issuance of stock options, the fair value of the options
is assessed using the Black & Scholes formula at the time
of grant and is recognised in personnel costs in the in-
come statement and in equity over the three-year vesting
period.
A part of the stock options is given as phantom shares
(cash-based programme) and are adjusted after initial
recognition to fair value through nancial expenses in
the income statement against a related provision.
Restricted Share Units (RSUs)
When RSUs are issued, the value of the RSUs at grant
date is recognised in personnel cost in the income
statement and in equity over the three-year vesting pe-
riod. On initial recognition of the RSUs, the number of
RSUs expected to vest is estimated. Subsequently, the
estimate is revised so the total cost recognised is based
on the actual number of RSUs vested. The fair value of
RSUs is determined based on the quoted share price
at grant adjusted for expected dividend payout (based
on historic dividend payout ratio). The participants are
compensated for any dividend payment by receiving
additional RSUs.
A minor part of the RSUs are given as phantom shares
(cash-based programme) and are after initial recogni-
tion adjusted to fair value through nancial expenses in
the income statement against a related provision.
Comments
Stock options
No stock options have been granted since 2015. The
outstanding options are all exercisable and fully vested
at the end of the reporting period.
The average share price at exercise in 2021 was
409 EUR (2020: 267 EUR). In 2021, the stock options
granted in 2013 expired and all the stock options were
exercised. In 2020, the stock options granted in 2012
expired and all the stock options were exercised.
ROCKWOOL Group Annual Report 2021
73
Comments
Restricted Share Units
Restricted Share Units (RSUs) will be subject to a vesting
period of three years. After the vesting period the
shares are transferred to the participants without pay-
ment, subject to continued employment with
ROCKWOOL Group in the vesting period.
In line with the Remuneration Policy, a one-time award
of conditional RSUs was granted to the CEO in 2020.
The award is subject to a ve-year vesting period and
only upon achievement of three parameters with equal
weight: a) Reduction of CO
2
per tonne line wool; b)
growth in sales; and c) earnings. No one-time award
was granted in 2021.
The RSUs represent the employee's right to shares but
do not carry voting rights nor have any tangible value
before the RSUs are exercised and become actual B
shares of ROCKWOOL International A/S. The terms of
the share incentive may provide that shares may be set-
tled in cash in which case, the related provision equals
the share price at the time of vesting.
The estimated fair value of RSUs granted in 2021 was 3
MEUR (2020: 3 MEUR) at grant date.
In 2021, 4 MEUR was expensed related to the RSUs
(2020: 3 MEUR), of which 4 MEUR (2020: 2 MEUR) was
recognised in personnel costs. In 2021, the fair value
adjustment under nance expenses was close to zero
(2020: 1 MEUR).
Cash-settled programmes
The cash-settled programmes consist of phantom
shares granted during the years 2019-2021.
The employees granted the phantom shares participate
on terms and conditions similar to those applying to the
share options and the RSUs.
There are no more phantom options outstanding from
the 2013-2015 stock options. The outstanding RSUs
from 2019-2021 include 5014 phantom shares (2020:
6449).
The total intrinsic value of the phantom stock options/
RSUs at year-end amounts to 1 MEUR (2020: 1 MEUR),
which is recognised as a liability.
Notes
2.3 Long-term incentive programmes (continued)
Restricted share units (RSUs)
RSUs outstanding at year-end have the following vesting dates:
Time of grant
Vesting
date
Number of
RSUs 2021
Number of
RSUs 2020
2018 12.04.2021 - 8 494
2019 24.05.2022 10 311 10 311
2020 23.05.2023 14 226 14 226
2020, one-time award 26.05.2025 9 272 9 272
2021 22.05.2024 7 251 -
41 060 42 303
Weighted average remaining contractual life of the outstanding
RSUs at year-end (Year) 1.8 2.2
Of the number of RSUs 16 364 belong to Registered Directors and 24 696 to other senior executives. In 2020, 16 592 belonged
to Registered Directors and 25 711 to other senior executives.
Development in number of outstanding RSUs
2021 2020
Outstanding RSUs 1/1 42 303 30 957
Granted 7 559 24 802
Vested 8 802 12 896
Forfeited - 560
Outstanding RSUs 31/12 41 060 42 303
The average share price the day following the vesting date was 352 EUR.
ROCKWOOL Group Annual Report 2021
74
Note 3
Invested capital
3.1 Intangible assets 76
3.2 Tangible assets 77
3.3 Leases 78
3.4 Amortisation, depreciation
and write-downs 79
3.5 Impairment tests 80
3.6 Pension obligations 81
3.7 Provisions 83
Capital
expenditure
Down 41 MEUR
compared to 2020
302MEUR
ROU assets
61MEUR
ROIC
18.8%
75
ROCKWOOL Group Annual Report 2021
75
Accounting policies
The costs of research activities are carried as expend-
iture in the year in which they are incurred. The costs
of development projects which are clearly dened and
identiable, and of which the potential technical and
commercial exploitation is demonstrated, are capital-
ised to the extent that they are expected to generate
future revenue. Other development costs are recog-
nised on an ongoing basis in the income statement
under operating costs.
Intangible assets, apart from goodwill, are stated at
cost less accumulated amortisation and write-downs.
Amortisation of the following intangible assets is made
on a straight-line basis over the expected future lifetime
of the assets, which is:
Development projects: 2-10 years
Patents: 5-20 years
Software: 2-4 years
Trademarks: 10-20 years
Customer relationships: 10-15 years
Goodwill arisen from acquisition of enterprises and ac-
tivities is stated at cost. The carrying amount of good-
will is allocated to the Group’s cash-generating units
at the acquisition date. Identication of independent
cash-generating units is based on business structure
and level of internal control of cash ow.
Goodwill is tested annually for impairment and the car-
rying amount of other assets is reviewed on indications
of impairment. When testing for impairment, the value
is written down to the estimated net sales price or the
value in use, if greater. Software in progress is also
tested for impairment annually.
Notes
3.1 Intangible assets
Intangible assets
2021 2020
MEUR Goodwill Software
Customer
relationships
Other
intangible assets
Software
in progress Total Goodwill Software
Customer
relationships
Other
intangible assets
Software
in progress Total
Cost 1/1 127 92 82 42 12 355 128 85 80 52 20 365
Exchange rate adjustments 6 - 3 1 1 11 -5 - -3 - - -8
Additions for the year - - - 2 5 7 - - - - 4 4
Transfer of assets in progress - 3 4 -6 -1 - - 10 - - -10 -
Disposals for the year - -2 - -5 - -7 - -3 - -13 -2 -18
Business acquisitions - - - - - - 4 0 5 3 - 12
Cost 31/12 133 93 89 34 17 366 127 92 82 42 12 355
Amortisation and write-downs 1/1 31 79 43 21 - 174 31 72 37 31 2 173
Exchange rate adjustments - 1 2 1 - 4 - -1 -2 -1 - -4
Amortisation for the year - 6 6 2 - 14 - 8 8 4 - 20
Write-down for the year - - - - - - - 3 - - - 3
Transfers - - 4 -4 - - - - - - - -
Disposals for the year - -2 - - - -2 - -3 - -13 -2 -18
Amortisation and write-downs 31/12 31 84 55 20 - 190 31 79 43 21 - 174
Carrying amount 31/12 102 9 34 14 17 176 96 13 39 21 12 181
During the year R&D costs amounting to 45 MEUR (2020: 41 MEUR) have been expensed.
ROCKWOOL Group Annual Report 2021
76
Comments
Goodwill is allocated to cash generating units (CGUs) in
Insulation segment at an amount of 42 MEUR (2020: 41
MEUR) and to CGUs in Systems segment at an amount
of 60 MEUR (2020: 55 MEUR).
Goodwill has been impairment tested for the identied
CGUs, which for both years have not resulted in any
value adjustments.
The impairment test of goodwill is based on current
and future results for the CGUs to where the results are
allocated. Most of the goodwill in the Group is related
to the acquisition of Flumroc in 2017, Chicago Metal-
lic in 2013 and CSR in 2010 and they are performing
according to plan.
Please refer to note 3.5 for further details.
In 2020 a write-down of 3 MEUR of software was recog-
nised affecting both segments due to low utilisation.
The carrying amount of other intangible assets includes
brands amounting to 10 MEUR (2020: 12 MEUR) and
patents amounting to 4 MEUR (2020: 8 MEUR).
Notes
3.1 Intangible assets (continued) 3.2 Tangible assets
Accounting policies
Tangible assets are stated at cost less accumulated de-
preciation and impairment losses. The cost of technical
plant and machinery manufactured by the Group com-
prises the acquisition cost, expenditure directly related
to the acquisition, engineering hours, including indirect
production costs and borrowing costs.
Depreciation is carried out on a straight-line basis,
based on current assessment of their useful lives and
scrap value.
The expected lifetimes are:
Buildings: 20-40 years
Plant and machinery: 5-15 years
Other operating equipment: 3-10 years
On sale or scrapping of assets, any losses or gains are
included under other operating income for the year.
Investment grants are deducted in the cost of the
equivalent tangible assets.
Critical estimates
and judgements
The expected lifetime for tangible assets is determined
based on past experience and expectations for future
use of the assets. Especially the estimated lifetime of
plant and machinery is linked to uncertainty due to
varying utilisation and the signicant amount of mainte-
nance costs. The expected future lifetime for the assets
is evaluated annually.
When there is an indication of a reduction in the prof-
itability of an asset, an impairment test is performed
for the assets in question and write-downs are made, if
necessary.
The recoverable amounts of the assets and cash-gen-
erating units are determined based on value-in-use
calculations and fair value less cost to sell. These
calculations require the use of estimates as they are
based on budgets, business plans and projections for
ve years and take into account previous experience
and represent Management’s best estimate of future
developments.
Comments
Of the carrying amount of buildings and land, 119
MEUR (2020: 114 MEUR) represent sites not subject to
depreciation.
Accumulated capitalised interests amounting to 3
MEUR (2020: 3 MEUR) are included in the cost of tan-
gible assets. There is no additional capitalised interest
neither this year nor last year.
For the recognised investment grants the conditions are
fullled or are reasonably assured to be fullled. Some
of the received investment grants are subject to repay-
ment obligations provided that the attached conditions
are not fullled within a number of years.
The Group’s investment grants are for the main part
received in China, Poland, Spain, Germany, Norway and
the United States. The investment grants received in
2021 amount to 13 MEUR (2020: 19 MEUR). The grants
are in most cases linked to expansion of the Group
including the amount of investment in tangible assets
and the creation of jobs - and is given as cash or loans.
Only limited contingent liabilities exist.
Contractual obligations for the purchase of tangible as-
sets at 31 December 2021 amount to 107 MEUR (2020:
90 MEUR).
ROCKWOOL Group Annual Report 2021
77
3.3 Leases
Accounting policies
Whether a contract contains a lease is assessed at
contract inception. For identied leases, a right-of-use
(RoU) asset and corresponding liability are recognised
on the lease commencement date.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the payments, which
are xed or variable payments dependent on an index
or a rate. When adjustments to lease payments based
on an index or a rate take effect, the lease liability is re-
assessed and adjusted against the lease asset. Service
components are excluded from the lease liability except
from those relating to cars.
To measure the lease liability at an amount equal to the
net present value of the lease payments, a discount rate
is used. For this purpose, the Group generally uses its
incremental borrowing rate (IBR). The IBR is calculated
per main country/region per asset type considering
different length of the lease terms.
The lease payments have been split into an interest cost
and a repayment of the lease liability.
RoU assets are measured at cost corresponding to the
lease liability recognised, adjusted for any lease pre-
payments or directly related costs, including restoration
costs.
RoU assets are depreciated on a straight-line basis over
the shorter of the expected lease term and the asset’s
useful life. RoU assets are tested for impairment when ever
there is an indication that the assets may be impaired.
Notes
3.2 Tangible assets (continued)
Tangible assets
2021 2020
MEUR
Buildings
and sites
Plant and
machinery
Other operating
equipment
Tangible assets
in progress Total
Buildings
and sites
Plant and
machinery
Other operating
equipment
Tangible assets
in progress Total
Cost 1/1 1 105 2 099 123 534 3 861 1 094 2 084 114 399 3 691
Exchange rate adjustments 28 45 -1 23 95 -46 -82 -4 -18 -150
Additions for the year - - - 301 301 - 5 - 330 335
Transfer of assets in progress 233 330 22 -585 - 55 107 15 -177 -
Disposals for the year -12 -18 -4 - -34 -1 -17 -3 - -21
Business acquisitions 4 4 - - 8 3 2 1 - 6
Cost 31/12 1 358 2 460 140 273 4 231 1 105 2 099 123 534 3 861
Depreciation and write-downs 1/1 468 1 660 101 - 2 229 451 1 640 94 - 2 185
Exchange rate adjustments 6 35 1 - 42 -13 -59 -4 - -76
Depreciation for the year 36 103 26 - 165 31 95 14 - 140
Disposals for the year -12 -18 -4 - -34 -1 -16 -3 - -20
Depreciation and write-downs 31/12 498 1 780 124 - 2 402 468 1 660 101 - 2 229
Carrying amount 31/12 860 680 16 273 1 829 637 439 22 534 1 632
Hereof investment grants -9 -13 - -21 -43 -10 -2 - -19 -31
ROCKWOOL Group Annual Report 2021
78
Leases in the balance sheet
MEUR
2021 2020
Right-of-use assets:
Ofces, other buildings and sites 12 9
Warehouses 30 19
Forklifts, cars and other assets 19 16
Carrying amount of right-of-use assets 31/12 61 44
Contractual maturity of lease liabilities:
< 1 year 21 21
1-5 years 35 31
> 5 years 17 10
Total undiscounted lease liabilities 73 62
Current/non-current classication (discounted):
Non-current 44 27
Current 19 18
In 2021, additions to right-of-use assets were 37 MEUR (2020: 13 MEUR).
Leases in the income statement
MEUR 2021 2020
Depreciation of right-of-use assets:
Ofces, other buildings and sites 3 3
Warehouses 9 8
Forklifts, cars and other assets 10 10
Total depreciation of right-of-use assets 22 21
Interest expense (included in nancial expenses) 2 2
Expense relating to short-term leases (included in operating costs) 10 8
Expense relating to low-value leases (included in operating costs) - -
Variable lease payments not included in the lease liabilities (included in operating costs)
1 2
The total cash outow for leases in 2021 was 35 MEUR (2020: 32 MEUR), of which 21 MEUR (2020: 20 MEUR) is classied as
cash ow from nancing activities and 14 MEUR (2020: 12 MEUR) is classied as cash ow from operating activities.
Accounting policies (continued)
Extension and termination options are included in a
number of property and equipment leases across the
Group. The majority of extension and termination op-
tions held are exercisable only by the Group and not by
the respective lessor. If the lease contract contains an
extension or purchase option that the Group considers
reasonably certain to be exercised, these are included
in the measurement of the liability.
Short-term leases and leases of low value are recognised
on a straight-line basis as cost in the income statement.
The Group’s portfolio of leases covers leases of ofce
buildings, warehouses and other equipment such as
cars and forklifts. Leases for ofces and other buildings
have lease terms between 2-22 years, warehouses be-
tween 3-10 years while car and forklift leases generally
have lease terms between 3-5 years. The Group also
has a few long-term site leases with lease terms up to
99 years.
Notes
3.3 Leases (continued)
3.4 Amortisation, depreciation and write-downs
Comments
In 2021, no write-downs on intangible or tangible assets were recognised. In 2020, a write-down of 3 MEUR of intan-
gible assets was recognised affecting both segments due to lower benets and utilisation compared to the original
business plan.
Amortisation, depreciation and write-downs
MEUR 2021 2020
Amortisation of intangible assets 14 20
Write-down of intangible assets - 3
Depreciation of tangible assets 165 140
Depreciation of right-of-use assets 22 21
Amortisation, depreciation and write-downs 201 184
ROCKWOOL Group Annual Report 2021
79
Notes
3.5 Impairment tests
Accounting policies
When there is an indication of a reduction in the prot-
ability of an asset, an impairment test is performed for
the assets in question and write-downs are made,
if necessary.
For goodwill, annual impairment tests are made. The
recoverable amounts of the assets and cash-generating
units (CGUs) have been determined based on value-in-
use calculations. When testing for impairment, the value
is written down to the estimated recoverable amount, if
lower than the carrying amount.
Other assets are tested for impairment when there are
indications of change in the structural protability.
Critical estimates and judgements
When preparing impairment tests, estimates are used
to calculate the future value. Signicant estimates are
made when assessing long-term growth rates and
protability. In addition, an assessment is made of the
reasonable discount rate.
Changes in the growth rate in the budget period or
discount rate may result in signicantly different values.
The assessments are made based on budgets, business
plans and projections for ve years and take into
account previous experience and represent Manage-
ment’s best estimate of future developments.
Key parameters are growth in sales, margins, discount
rate and future growth expectations.
Comments
Management has performed the yearly impairment
test of the carrying amount of goodwill. In addition,
impairment test of other assets has also been made,
where indication of reduction of value was found. In
the impairment test, the carrying amount of the assets
is compared to the discounted value of the future cash
ows. The assessment of future cash ows is typically
based on ve-year management reviewed budgets
and business plans, where the last year is used as a
normalised terminal year. Net sales, raw material prices,
discount rate and future growth assumptions constitute
the most material parameters in the calculation.
The average growth rate in the terminal period is set to
two percent. The average growth rate in the budget pe-
riod is estimated to be between 0-10 percent depend-
ing on the businesses.
The high growth rates are used in countries where
we historically have seen steep increases after a slow
period.
Gross margins are based on average values the last
three years and adjusted over the budget period for
efciency improvements and expected raw material
ination based on past actual price movements and
future market conditions. Future investment is derived
from the historic investment level to secure a smooth
operation of the factories and the capacity utilisation
is based on the current situation including investment
plans. The discount rate calculation is based on the
specic circumstances of the Group and the operating
segments and is derived from the weighted average
cost of capital (WACC).
2021
The impairment tests for 2021 have not shown a need
for write-downs or reversals of write-downs recognised
previous years. During 2021 HECK Wall Systems has
been monitored closely. HECK Wall Systems exceeded
the expectations and market outlook outlined in the
impairment test last year, and the stone wool conver-
sion goal was reached in 2021. The net present value of
HECK Wall Systems amounts to 59 MEUR in 2021 which
gives a headroom of 37 MEUR to the carrying amount.
The main drivers are sales growth and costs efciency
improvements.
2020
The impairments test for 2020 have not shown a need
for write-downs or reversals of write-downs recognised
previous years. During 2020 HECK Wall Systems has
been monitored closely. HECK Wall Systems follows the
expectations and market outlook outlined in the impair-
ment test last year. The net present value of HECK Wall
Systems amounts to 28 MEUR in 2020 which gives a
headroom of 4 MEUR to the carrying amount. The main
driver is conversion to stone wool products and in 2021
it is expected to fully convert to stone wool products.
Sensitivity analysis
As part of the preparation of impairment tests, sensi-
tivity analyses are prepared on the basis of relevant risk
factors and scenarios that management can determine
within reasonable reliability. Sensitivity analyses are
prepared by altering the estimates with a range of
probable outcomes.
2021
The sensitivities have been assessed as follows, all other
things being equal; an increase in the discount rate of
one percent, a decrease in the growth rate of one per-
cent p.a. and an increase of input costs of one percent
p.a. None of the scenarios resulted in identication of
write-downs.
We consider the chosen scenarios as the most realistic,
which is why none of the impairment tests have given
rise to adjustment of the value.
2020
The sensitivities have been assessed as follows, all other
things being equal; an increase in the discount rate of
one percent, a decrease in the growth rate of one per-
cent p.a. and an increase of input costs of one percent
p.a. The write-down in HECK Wall Systems would have
been 1-5 MEUR if the discount rate was to increase one
percent or the growth was one percent lower.
We consider the chosen scenarios as the most realistic,
which is why none of the impairment tests have given
rise to adjustment of the value.
ROCKWOOL Group Annual Report 2021
80
Notes
3.5 Impairment tests (continued)
Impairment test of goodwill
MEUR 2020
CGUs
Carrying
amount,
Goodwill
Discount
rate
Growth rate
(budget
period) Headroom
Chicago Metallic Corporation (Rockfon) 52 8.9% 4%* Large
HECK Wall Systems 6 8.0% 4%* Minor
CSR 8 10.8% 9%* Large
Flumroc 15 8.0% 2% Large
Other 15 8-12% 0-12% Large
Total 96
* Average growth rate due to large spread in the period.
Impairment test of goodwill
MEUR 2021
CGUs
Carrying
amount,
Goodwill
Discount
rate
Growth rate
(budget
period) Headroom
Chicago Metallic Corporation (Rockfon) 57 7.1% 3%* Large
HECK Wall Systems 6 6.9% 3%* Large
CSR 8 8.0% 7%* Large
Flumroc 15 6.9% 7%* Large
Other 16 7-11% 2-11% Large
Total 102
* Average growth rate due to large spread in the period.
3.6 Pension obligations
Accounting policies
Pension payments concerning dened contribution plans are
recognised on an ongoing basis in the income statement.
Dened benet plans are stated at the net present value
at the balance sheet date and included in the consoli-
dated nancial statements. Adjustments of the plans are
carried out on a regular basis in accordance with under-
lying actuarial assessments. Actuarial gains or losses for
dened benet plans are recognised in full in the period
in which they occur in other comprehensive income. The
actuarial assessment is carried out every year.
Funded benet plans have assets placed in trustee-ad-
ministered pension funds, which are governed by local
regulations and practice in each country.
The payments to the pension funds are based on the
usual actuarial assessments and are recognised in the
income statement after maturity. Provided that the
actuarial assessments of pension obligations show
noticeable excess solvency or insolvency in relation to
the pension fund’s assets, the difference is entered to
the balance sheet and the future payments are adjusted
accordingly. With regard to these schemes, the actuari-
al assessment is also carried out every year.
Comments
The present value of dened benet pension ob-
ligations depends on a number of factors that are
determined on an actuarial basis using a number of
assumptions. Any changes to these assumptions will
impact the carrying amount of pension obligations.
The discount rate and other key assumptions are based
in part on the current market conditions.
Comments
A number of the Group’s employees and former employ-
ees participate in pension schemes. The pension schemes
are primarily dened contribution plans. However, dened
benet plans are also used, mainly in Switzerland, the Unit-
ed Kingdom and Germany. The benet plans in the United
Kingdom and Germany are closed for new entries.
Under a dened benet plan the Group carries the risk
associated with the future development in e.g. interest
rates, ination, salaries, mortality and disability.
Dened benet plans typically guarantee the employees a
retirement benet based on the nal salary at retirement.
The pension benet plans in the United Kingdom and
Switzerland have assets placed in independent pension
funds. The remaining plans are unfunded, where the main
part relates to Germany. For these plans the retirement
benet obligations amount to approximately 22 percent
(2020: 22 percent) of the total gross liability.
Except for the Swiss and UK plans, the mentioned dened
benet plans are not subject to regulatory requirements
regarding minimum funding. The granted pension pay-
ments of the mentioned dened benet plans are based
upon the salary of the participating employees during
the period of employment. The Group’s contributions are
derived from the split of the pension premium between
the employee and employer.
The actuarial assessment of the pension obligation is
based on assumptions specic to each country. The latest
actuarial calculation is prepared by authorised experts.
The valuation of the assets is based on the composition
and the expectations to the economic development. The
assumptions used are weighted averages.
ROCKWOOL Group Annual Report 2021
81
Pension costs
MEUR 2021 2020
Dened contribution plans:
Total pension costs recognised 29 23
Dened benet plans:
Pension costs 2 7
Interest costs 2 2
Interest income -1 -2
Curtailments/settlements -1 -
Total pension costs recognised 2 7
Dened benet pension plans
MEUR 2021 2020 2019 2018 2017
Present value of pension liabilities 239 250 247 217 227
Fair value of plan assets -214 -184 -185 -164 -174
Assets ceiling limitation 10 - - - -
Pension obligation, net 31/12 35 66 62 53 53
Key assumptions
2021 2020
Increase in salaries and wages 1.2% 1.4%
Discount rate 1.1% 0.7%
Remaining life expectancy at the time of retirement (years) 27.1 25.1
Dened benet pension obligation
MEUR 2021 2020
Obligations 1/1 250 247
Exchange rate adjustments 10 -4
Pension costs 6 7
Interest costs 2 2
Settlements -3 -
Actuarial gains/losses from changes in demographic assumptions -7 -
Actuarial gains/losses from changes in nancial assumptions -7 12
Actuarial gains/losses from changes in experience -2 -3
Benets paid -10 -11
Obligations 31/12 239 250
Sensitivity analysis
Assumptions Discount rate Salary increase Life expectancy
-0.5% +0.5% -1.0% +1.0% -1 year +1 year
MEUR
2021 - Impact on obligation 19 -18 -2 2 -8 8
2020 - Impact on obligation 21 -19 -2 3 -8 9
The sensitivity analysis above has been determined based on a method that extrapolates the impact on the dened benet
obligation as a result of reasonable changes in key assumptions.
Notes
3.6 Pension obligations (continued)
ROCKWOOL Group Annual Report 2021
82
The following payments are expected contributions to the dened benet plan obligation:
Expected contributions
MEUR 2021 2020
< 1 year 7 6
1-5 years 24 25
> 5 years 38 41
Expected contributions 69 72
The expected duration of the dened benet plan obligation is 27 years (2020: 25 years) at year end.
Pension plan assets
MEUR 2021 2020
Pension plan assets 1/1 184 185
Exchange rate adjustments 10 -4
Interest income 1 2
Return on plan assets 22 6
Employer’s contribution 4 4
Plan participants 1 1
Benets paid -8 -10
Pension plan assets 31/12 214 184
Composition of pension plan assets
MEUR 2021 2020
Assets quoted in active markets:
Equities in European markets 39% 34%
Bonds in European markets 31% 36%
Assets unquoted:
Cash 8% 12%
Other 22% 18%
Notes
3.6 Pension obligations (continued)
3.7 Provisions
Accounting policies
Provisions are recognised where a legal or constructive
obligation has been incurred as a result of past events
and if it is probable it will lead to an outow of nancial
resources and if the size of the liability can be measured
on a reliable basis. The provision is calculated as the
amount expected to be paid to settle the obligation.
Comments
Provisions relate primarily to jubilee obligations and
retirement benets, fair value provision for phantom
shares, waste disposal provision for the company in
Japan, restructuring, warranties and ongoing disputes.
As at 31 December 2021 other provisions include a
provision of 1 MEUR (2020: 5 MEUR) for restructuring
measures. This provision is expected to be utilised
within one year.
Provisions
2021 2020
MEUR Employees
Claims
and legal
actions Other Total Employees
Claims
and legal
actions Other Total
Provisions 1/1 12 4 10 26 12 4 10 26
Exchange rate adjustments - - - - - - - -
Additions for the year 3 5 1 9 3 4 6 13
Used during the year -2 -2 -4 -8 -3 -1 -3 -7
Reversed during the year - -3 -3 -6 - -3 -3 -6
Business acquisitions - - 3 3 - - - -
Provisions 31/12 13 4 7 24 12 4 10 26
Current/non-current classication:
Non-current liabilities 11 1 4 16 10 2 6 18
Current liabilities 2 3 3 8 2 2 4 8
Provisions 31/12 13 4 7 24 12 4 10 26
ROCKWOOL Group Annual Report 2021
83
Notes
4.1 Inventories
4.2 Trade receivables
Accounting policies
Inventories are valued at the lowest value of historical
cost calculated as a weighted average or the net reali-
sation value.
The cost of nished goods and work in progress include
the direct costs of production materials and wages,
as well as indirect production costs such as personnel
costs, maintenance costs and depreciation of plant and
machinery.
Comments
Raw materials and consumables include the net amount
of the spare part inventory of 35 MEUR (2020: 22
MEUR). The net amount consists of a cost price of 99
MEUR (2020: 84 MEUR) and a write-down of spare part
inventory of 64 MEUR (2020: 62 MEUR).
Inventories
MEUR 2021 2020
Raw materials and consumables 144 96
Work in progress 15 10
Finished goods 158 110
Inventories 31/12 317 216
Inventory before write-downs 334 231
Write-downs 1/1 -15 -14
Change in the year -2 -1
Write-downs 31/12 -17 -15
Inventories 31/12 317 216
Accounting policies
Trade receivable are measured at amortised cost less
allowance for bad debt based on the expected credit
loss model.
The Group applies the simplied approach to measure
expected credit losses, which uses a lifetime expected
loss allowance for all trade receivables.
To measure the expected credit losses, trade receiv-
ables have been grouped based on shared credit risk
characteristics and the days past due.
The expected loss rates are based on the payment
proles of sales over a period of 60 months before 1
January 2021 and the corresponding historical credit
losses experienced within this period. The historical loss
rates are adjusted to reect current and forward-look-
ing information on macroeconomic factors affecting the
ability of the customers to settle the receivables.
The costs of allowance for bad debts and realised loss-
es during the year are included in other external costs.
Trade receivables
MEUR 2021 2020
Trade receivables before allowance for bad debts (maximum credit risk) 318 257
Allowance for bad debts 1/1 -10 -13
Exchange rate adjustments - 1
Movements during the year -2 -1
Realised losses during the year 1 3
Allowance for bad debts 31/12 -11 -10
Trade receivables 31/12 307 247
ROCKWOOL Group Annual Report 2021
85
Allowance for bad debts based on the expected credit loss model
2021
MEUR
Expected
loss rate
Gross
carrying
amount
Allowance
for bad
debt Total
Current 0.1% 301 - 301
More than 30 days past due 2% 4 - 4
More than 60 days past due 40% 2 - 2
More than 90 days past due 100% 11 -11 -
Total 31/12 318 -11 307
2020
MEUR
Expected
loss rate
Gross
carrying
amount
Allowance
for bad
debt Total
Current 0.1% 241 - 241
More than 30 days past due 2% 5 - 5
More than 60 days past due 40% 1 - 1
More than 90 days past due 100% 10 -10 -
Total 31/12 257 -10 247
Adjustments of non-cash operating items
MEUR 2021 2020
Provisions -7 5
Expensed value of RSUs issued 2 2
Adjustments of non-cash operating items -5 7
Changes in net working capital
MEUR 2021 2020
Change in inventories -89 10
Change in trade receivables -47 23
Change in other receivables -45 -9
Change in trade payables 91 -2
Change in other payables 8 5
Change in net working capital -82 27
Notes
4.2 Trade receivables (continued) 4.3 Other cash ow notes
ROCKWOOL Group Annual Report 2021
86
Consolidated nancial statements
Equity ratio
Compared to 76.1%
in 2020
Down 75 MEUR from
2020
Up 2.5 EUR from 2020
77.7%
Cash available
Earnings per share
165MEUR
14.1EUR
Note 5
Capital structure
and nancing
5.1 Financial income and
Financial expenses 88
5.2 Financial risks and instruments 88
5.3 Cash available 90
5.4 Loans 90
5.5 Own shares 91
5.6 Share capital 91
5.7 Earnings per share 91
87
ROCKWOOL Group Annual Report 2021
87
Accounting policies
Financial income and Financial expenses comprise
interest income and interest costs, interest costs
compiled from lease liabilities, realised and unrealised
foreign exchange gains and losses, as well as fair value
adjustments of cash-settled share-based incentive pro-
grammes which are offset against other liabilities.
Financial income and Financial expenses also include
adjustments to fair value hedges, and income and
costs relating to cash ow hedges transferred from
other comprehensive income on realisation of the
hedged items.
Financial income
MEUR 2021 2020
Interest income 2 2
Foreign exchange gains 8 6
Financial income 10 8
Hereof nancial income on nancial assets at amortised cost 2 2
Financial expenses
MEUR 2021 2020
Interest expenses and similar 8 10
Interest expenses lease liabilities 2 2
Fair value adjustment phantom shares - 1
Foreign exchange losses 9 9
Financial expenses 19 22
Hereof nancial expenses on nancial liabilities at amortised cost 4 8
Accounting policies
Derivative nancial instruments are initially recognised
in the balance sheet at cost price and are subsequently
measured at fair value. Derivative nancial instruments
are recognised in other receivables and other payables.
Changes to the fair value of derivative nancial instru-
ments, which meet the conditions for hedging the fair
value of a recognised asset or liability, are recognised in
the income statement together with any changes in the
fair value of the hedged asset or liability.
Changes to the fair value of derivative nancial instru-
ments, which meet the conditions for hedging future
cash ow, are recognised in other comprehensive
income provided the hedge has been effective. Hedge
effectiveness is determined at the inception of the
hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic
relationship exists between the hedged item and
hedging instrument. The accumulated value adjustment
related to these hedge transactions is transferred from
other comprehensive income when the position is real-
ised, and is included in the value of the hedged position
e.g. the adjustment follows the cash ow.
For derivative nancial instruments, which do not
qualify as hedging instruments, changes to the fair
value are recognised on an ongoing basis in the income
statement as nancial income or nancial expenses.
Comments
As a consequence of ROCKWOOL Group’s extensive in-
ternational activities, the Group’s income statement and
equity are subject to a number of nancial risks. The
Group manages these risks in the following categories:
– Exchange rate risk
– Interest rate risk
– Liquidity risk
– Credit risk
The Group’s policy is to identify and hedge signicant
nancial risks on an ongoing basis. This is the respon-
sibility of the individual companies in which nancial
risks might arise and overall supported by the Group’s
treasury department. The parent company continuously
monitors the Group’s nancial risks in accordance with
a framework determined by Group Management and/or
the Board of Directors.
Exchange rate risk
As a consequence of the Group’s structure, net sales
and expenditure in foreign currency are to a signicant
degree set off against each other, so that the Group is
not exposed to major exchange rate risks.
Commercial exchange rate risks in the companies,
which cannot be set off are hedged on a continuous
basis, to the extent that they may signicantly affect
the results of the individual company in a negative di-
rection, using currency loans, currency deposits and/or
nancial derivatives. Exchange rate risks are hedged in
the individual companies. The Group’s hedging reserve
is disclosed under “Statement of changes in equity”
with an insignicant amount.
Notes
5.1 Financial income and Financial expenses 5.2 Financial risks and instruments
ROCKWOOL Group Annual Report 2021
88
Categories of nancial assets and liabilities
MEUR
2021 2020
Financial assets:
Financial instruments for hedging of future cash ows
- 1
Financial assets at fair value through other comprehensive income
- 1
Trade receivables
307 247
Other receivables and receivables from associated companies
98 59
Cash
166 241
Financial assets at amortised costs
571 547
Financial liabilities:
Fair value hedges
- -
Financial liabilities at fair value through income statement
- -
Financial instruments for hedging of future cash ows
1 1
Financial liabilities at fair value through other comprehensive income
1 1
Bank loans and other loans including short-term portion
26 100
Bank debt
1 1
Trade payables
283 184
Other payables
176 157
Financial liabilities at amortised costs
486 442
The carrying value of the Group’s nancial assets and liabilities measured at amortised cost are assessed to be a reasonable
approximation of fair value.
Other receivables and receivables from associated companies
Other receivables and receivables from associated companies fall due within one year in both 2021 and 2020, and
amount to 98 MEUR (2020: 60 MEUR).
Notes
5.2 Financial risks and instruments (continued)
Comments
The Group’s net sales and expenditures will be subject
to exchange rate uctuations on translation into EUR.
A sensitivity analysis is made for the Group’s result and
equity based on the underlying currency transactions.
The nancial instruments included in the sensitivity
analysis are cash, receivables, payables, current liabil-
ities and nancial investments without taking hedging
into consideration. The result of the sensitivity analysis
cannot be directly transferred to the uctuations on
translating the nancial result and equity of sub sidiaries
into EUR.
The impact on the net sales of the difference between
average rate and year-end rate amounts to 27 MEUR
(2020: 42 MEUR) for the ve most exposed currencies
(USD, RUB, CAD, PLN, and GBP), which is a change of
0.9 percent (2020: -1.5 percent).
The Group’s policy is not to hedge exchange rate risks
in long-term investments in subsidiaries. When relevant,
external investment loans and Group loans are, as a
general rule, established in the local currency of the
company involved, while cash at bank and in hand are
placed in local currency.
In the few countries with ineffective nancial markets
loans can be raised and surplus liquidity placed in DKK
or EUR, subject to the approval of the Group’s nance
function. Most Group loans that are not established in
DKK or EUR, are hedged via forward agreements, cur-
rency loans and cash pools or via the SWAP market.
Interest rate risk
Currently the Group does not have any signicant
non-current interest-bearing debt or assets. The
Group’s policy is that necessary nancing of invest-
ments should primarily be affected by raising ve to
seven year loans at xed or variable interest rates.
Drawings on credit facilities at variable interest rates
generally match the funds, and all Group loans are
symmetrical in terms of interest rates. Consequently,
changes in interest rates will not have a signicant
effect on the result of the Group.
Sensitivity analysis
Effect in MEUR EBITDA
5% change in exchange rate 2021 2020
USD (+/-) 10 7
RUB (+/-) 7 4
CAD (+/-) 3 1
PLN (+/-) 1 1
GBP (+/-) 7 5
Equity
5% change in exchange rate 2021 2020
USD (+/-) 14 12
RUB (+/-) 12 10
CAD (+/-) 11 9
PLN (+/-) 12 12
GBP (+/-) 10 7
ROCKWOOL Group Annual Report 2021
89
Liquidity risk
The current surplus and decit liquidity in the Group’s
companies is set off, to the extent that this is protable,
via the parent company acting as intra-Group bank and
via cash pool systems. When considered appropriate,
underlying cash pool systems are established in foreign
companies.
To the extent that the nancial reserves are of an appro-
priate size, the parent company also acts as lender to
the companies in the Group.
To ensure adequate nancial reserves as dened by the
Board of Directors, investment loans can be raised on a
continuous basis to partly cover new investments and to
renance existing loans. The parent company has made
guarantees for some credit facilities and loans. The
parent company has issued ownership clauses and/or
deed of postponements in connection with intercom-
pany loans.
The parent company ensures on an ongoing basis that
exible, unutilised committed credit facilities of an
adequate size are established with Investment Grade
credit-rated banks. The Group’s nancial reserves also
consist of cash at bank and in hand, and unused over-
draft facilities.
Credit risk
Due to the considerable customer spread in terms of
geographical location and numbers, the credit risk is
fundamentally limited. To a minor degree, when consid-
ered necessary, insurance or bank guarantees are used
to hedge outstanding receivables.
As a consequence of the international diversication of
the Group’s activities there are business relations with
a number of different banks in Europe, North America
and Asia. To minimise the credit risk on placement of
funds and on entering into agreements on derived
nancial instruments, only major, nancially sound
institutions are used.
Customer credit risks are assessed considering the
nancial position, past experience and other factors. In-
dividual risk limits are set based on internal and external
ratings. For impairment of trade receivable please refer
to note 4.2.
Financial instruments
Financial assets and liabilities at fair value are related
to foreign exchange rate forward contracts, foreign
exchange rate swaps or interest rate swaps all of which
have been valued using a valuation technique with
market observable inputs (level 2).
The Group is using no other valuation technique. The
Group enters into derivative nancial instruments with
nancial institutions.
Derivatives valued using valuation techniques with
market observable inputs are mainly foreign exchange
forward contracts. The most frequently applied valua-
tion techniques include forward pricing models using
present value calculations. The models incorporate vari-
ous inputs including the credit quality of counterparties
and foreign exchange spot rates.
Notes
5.2 Financial risks and instruments (continued)
Cash available
MEUR 2021 2020
Cash 166 241
Bank debt 1 1
Cash available 31/12 165 240
5.3 Cash available
5.4 Loans
Comments
Bank loans are measured at amortised cost. The carry-
ing amount for these approximates fair value.
Bank loans amounted to 26 MEUR at 31 December
2021. The loan is to be fully repaid within three years,
and is a xed interest loan.
In 2020, bank loans amounted to 100 MEUR, of which
the majority of the loans were due within one year, and
none was due more than ve years after the balance
sheet date. All bank loans in 2020 had xed interest and
were denominated in EUR.
ROCKWOOL Group Annual Report 2021
90
Notes
5.5 Own shares
Accounting policies
ROCKWOOL International A/S has a reserve of own
shares recognised in retained earnings. The shares are
bought back to meet obligations under
the Group's equity-based stock option and restricted
share unit programmes and as part of the Group's share
buy-back programme.
Own shares
EUR 2021 2020
A-shares
Number
of shares
Average
purchase/
sales price
% of
share
capital
Number
of shares
Average
purchase/
sales price
% of
share
capital
Own shares 1/1 76 069 0.4 - -
Purchase - - - 76 069 257 0.4
Cancellation of shares 76 069 - 0.4 - - -
Own shares 31/12 - - 76 069 0.4
B-shares
Own shares 1/1 327 843 1.4 72 894 0.3
Purchase 18 630 330 0.1 284 515 213 1.3
Cancellation of shares 278 145 1.2 - - -
Sale 12 100 114 0.0 29 566 117 0.2
Own shares 31/12 56 228 0.3 327 843 1.4
Own shares are used to hedge the Group’s stock option and restricted share unit programmes and as part of
the Group's share buy-back programme. Own shares are purchased based on authorisation from the General
Assembly.
5.6 Share capital
5.7 Earnings per share
Comments
Each A share of a nominal value of 10 DKK (1.3 EUR)
carries 10 votes, and each B share of a nominal value of 10
DKK (1.3 EUR) carries one vote.
The Annual General Meeting of ROCKWOOL Internation-
al A/S on 7 April 2021 adopted the proposal to reduce
the Company’s share capital from nominally 219 749 230
DKK to nominally 216 207 090 DKK by cancellation of the
Company’s own shares.
The share capital has been fully paid up. No shareholder
is under an obligation to allow his shares to be redeemed
whether in whole or in part. The shares are negotiable
instruments, and all shares shall be freely transferable.
Share capital
MEUR 2021 2020
A shares - 11 155 558 shares of 10 DKK each (1.3 EUR) 15
B shares - 10 465 151 shares of 10 DKK each (1.3 EUR) 14
A shares - 11 231 627 shares of 10 DKK each (1.3 EUR) 15
B shares - 10 743 296 shares of 10 DKK each (1.3 EUR) 14
Share capital 29 29
Earnings per share
MEUR 2021 2020
Prot for the year attributable to shareholders of ROCKWOOL International A/S 303 251
Average number of shares ('000) 21 744 21 975
Average number of own shares ('000) 177 238
Average number of outstanding shares ('000) 21 567 21 737
Dilution effect of stock options ('000) 49 53
Average number of diluted shares ('000) 21 616 21 790
Earnings per share 14.05 11.54
Earnings per share, diluted 14.02 11.51
ROCKWOOL Group Annual Report 2021
91
Note 6
Other
6.1 Tax 93
6.2 Commitments and contingent liabilities 95
6.3 Related parties 95
6.4 Auditor’s fee 95
6.5 Events after the reporting date 95
6.6 Group companies 96
Effective tax
rate in 2021
23.0%
Number of associated
companies in the Group
2
Number of subsidiaries
in the Group
61
92
ROCKWOOL Group Annual Report 2021
92
Accounting policies
The parent company is taxed jointly with all Danish sub-
sidiaries. Income subject to joint taxation is fully distrib-
uted. Tax on prot for the year, which includes current
tax on prot for the year and changes to deferred tax,
is recognised in the income statement. Tax on changes
in other comprehensive income is recognised directly
under other comprehensive income.
Provisions for deferred tax are calculated on all tem-
porary differences between accounting and taxable
values, calculated using the balance-sheet liability
method.
Deferred tax provisions are also made to cover the
re-taxation of losses in jointly taxed foreign companies
previously included in the Danish joint taxation.
Companies within the Group may be entitled to claim
special tax deductions for investments in qualifying
assets or in relation to qualifying expenditure. The
Group accounts for such allowances as tax credits. Con-
sequently, the allowance reduces income tax payables
and current tax expense. A deferred tax asset is recog-
nised for unclaimed tax credits that are carried forward.
Deferred tax assets are recognised when it is probable
that the assets will reduce tax payments in coming years
and they are assessed at the expected net realisable
value.
Deferred tax is stated according to current tax reg-
ulations. Changes in deferred tax as a consequence
of changes in tax rates are recognised in the income
statement.
Tax on prot for the year
MEUR 2021 2020
Current tax for the year 86 74
Change in deferred tax 4 1
Adjustment to valuation of tax assets -1 -5
Withholding taxes 2 3
Adjustment in current and deferred tax in previous years -1 1
Tax on prot for the year 90 74
Reconciliation of effective tax rate
% 2021 2020
Danish tax rate 22.0 22.0
Deviation in non-Danish subsidiaries' tax compared to Danish tax percentage 1.4 1.7
Withholding tax adjustment 0.5 0.8
Permanent differences 0.0 0.1
Effect on change in income tax rates -0.4 -0.1
Adjustment to valuation of tax assets -0.3 -0.2
Initial recognition of tax credit -0.2 -1.5
Effective tax rate (%) 23.0 22.8
Income tax receivable and payable
MEUR 2021 2020
Income tax receivable and payable 1/1 -13 15
Exchange rate adjustments -2 3
Current tax for the year including withholding taxes 88 77
Payments during the year -85 -100
Adjustment in respect of prior years -1 -7
Current tax for the year recognised in other comprehensive income - -1
Income tax receivable and payable 31/12 -13 -13
Income tax is recognised as follows:
Income tax receivable 39 38
Income tax payable 26 25
Income tax receivable and payable 31/12 -13 -13
Notes
6.1 Tax
ROCKWOOL Group Annual Report 2021
93
Critical estimates and judgements
While conducting business globally, transfer pricing
disputes, etc. with tax authorities may occur, and Man-
agement judgement is applied to assess the possible
outcome of such disputes. The most probable outcome
is used as the measurement method, and Management
believes that the provision made for uncertain tax
positions not yet settled with local tax authorities is ad-
equate. However, the actual obligation may deviate and
is dependent on the result of litigations and settlements
with the relevant tax authorities.
The Group is subject to income taxes in numerous
jurisdictions. Signicant judgement is required in
determining provision for uncertain tax positions or the
recognition of a deferred tax asset.
A tax asset is recognised if it is assessed that the asset
can be utilised in a foreseeable future based on strong
indications that sufcient future prots are available to
absorb the temporary differences including the Group's
future tax planning.
The valuation of tax assets related to losses carried for-
ward is done on a yearly basis and is based on expected
positive taxable income within the next 3-5 years.
Comments
Tax assets not recognised amount to 21 MEUR (2020:
31 MEUR). The tax assets have not been recognised
as they have arisen in subsidiaries that have been
loss-making for some time and there is no evidence of
recoverability in the near future.
Deferred tax assets and liabilities are offset in the
consolidated balance sheet if the Group has a legally
enforceable right to set off and the deferred tax assets
and liabilities relate to the same legal tax entity/consol-
idation. Of the total deferred tax assets recognised, 3
MEUR (2020: 5MEUR) relate to tax loss carry forwards.
Deferred tax
MEUR 2021 2020
Deferred tax, net 1/1 -7 -11
Exchange rate adjustments 1 -
Acquisition of subsidiary - -
Change in deferred tax recognised in prot and loss 4 9
Adjustment to valuation of tax assets -1 -5
Deferred tax for the year recognised in other comprehensive income for the year 2 -
Deferred tax, net 31/12 -1 -7
Deferred tax is recognised in the balance sheet as follows:
Deferred tax assets 52 54
Deferred tax liabilities 51 47
Deferred tax, net 31/12 -1 -7
Deferred tax relates to:
Non-current assets 20 20
Current assets 1 -7
Non-current liabilities -12 -14
Current liabilities -11 -5
Tax loss carried forward -3 -5
Re-taxable amounts 4 4
Deferred tax, net 31/12 -1 -7
Unrecognised tax assets expire as follows
MEUR 2021 2020
< 1 year 1 1
1-5 years 5 5
> 5 years 13 21
Do not expire 2 4
Unrecognised tax assets 21 31
Notes
6.1 Tax (continued)
ROCKWOOL Group Annual Report 2021
94
Notes
6.2 Commitments and
contingent liabilities
6.3 Related parties
Accounting policies
Provisions for legal proceedings are recognised if they
are certain or probable at the balance sheet date, and
if the size of the liability can be measured on a reliable
basis. Legal proceedings for which no reliable estimate
can be made are disclosed as contingent liabilities.
Comments
For the Group, commitments comprise 26 MEUR (2020:
28 MEUR). Contingent liabilities amount to 6 MEUR
(2020: 6 MEUR). Contractual obligations for purchase of
tangible assets are mentioned in note 3.2.
The Group is engaged in a few legal proceedings. It is
expected that the outcome of these legal proceedings
will not impact the Group’s nancial position in excess
of what has been provided for in the balance sheet as at
31 December 2021 (as well as at 31 December 2020).
Comments
At 31 December 2021, own shares accounted for 0.3 per-
cent (2020: 1.8 percent) of the share capital, see note 5.5.
The Group’s related parties comprise the Company’s
shareholder; the ROCKWOOL Foundation, the Compa-
ny’s Board of Directors and Management and associat-
ed companies.
In 2021, no shares were purchased from major sharehold-
ers. In 2020, own shares were purchased from ROCK-
WOOL Foundation for a total of 16 MEUR for 57 557 A
shares, as part of the share buy-back programme ending
in January 2021.
Apart from dividends and purchase of own shares, no
transactions were carried out with the shareholders
during the year. For transactions with the Board of
Directors and Group Management please refer to note
2.2 and note 2.3.
Transactions with related parties
MEUR 2021 2020
Transactions with associated companies:
Net sales to associated companies 21 15
Dividend from associated companies 1 1
Transactions with other related parties:
Shares purchased - 16
6.4 Auditor’s fee
Comments
Fees for services in addition to the statutory audit of the
nancial statements which were provided by the statu-
tory auditor Price waterhouseCoopers Statsautoriseret
Revisionspartnerselskab to the Group amounted to less
than 1 MEUR in both 2021 and 2020.
Services in addition to the statutory audit of the nan-
cial statements comprise general consultancy services.
ROCKWOOL's policy is to follow the 70 percent fee cap
restriction on non-audit services provided by Price-
waterhouseCoopers Statsautoriseret Revisionspartner-
selskab, Denmark, the auditor of the parent company.
PricewaterhouseCoopers Statsautoriseret Revisions-
partnerselskab complies with the 70 percent fee cap
restriction in 2021 and 2020.
Fees to auditors elected at
the Annual General Meeting
MEUR 2021 2020
Statutory audit 1 1
Other opinions - -
Tax consultancy - 1
Other services 1 -
Fees to auditors 2 2
6.5 Events after the reporting date
We are not aware of events subsequent to 31 December
2021, which are expected to have a material impact on
the Group’s nancial position.
ROCKWOOL Group Annual Report 2021
95
Subsidiaries Country
% Shares
owned
ROCKWOOL Handelsgesellschaft m.b.H. Austria 100
Etablissements Charles Wille et cie SA Belgium 100
ROCKWOOL Belgium N.V. Belgium 100
ROCKWOOL Bulgaria EooD Bulgaria 100
ROXUL Inc. Canada 100
Chicago Metallic (Shenzhen) Co. Ltd. China 100
ROCKWOOL Firesafe Insulation (Guangzhou) Co. Ltd. China 100
ROCKWOOL Firesafe Insulation (Jiangsu) Co., Ltd. China 100
ROCKWOOL Adriatic d.o.o. Croatia 100
ROCKWOOL a.s. Czech Republic 100
ROCKWOOL A/S Denmark 100
Tripplex ApS Denmark 100
ROCKWOOL EE OÜ Estonia 100
ROCKWOOL Finland OY Finland 100
ROCKWOOL France S.A.S France 100
Deutsche ROCKWOOL GmbH & Co. KG Germany 100
HECK Wall Systems GmbH Germany 100
ROCKWOOL Beteiligungs GmbH Germany 100
ROCKWOOL Mineralwolle GmbH Flechtingen Germany 100
ROCKWOOL Operations GmbH & Co. KG Germany 100
ROCKWOOL Rockfon GmbH Germany 100
ROCKWOOL Verwaltungs GmbH Germany 100
Chicago Metallic (Asia Pacic) Ltd. Hong Kong 100
ROCKWOOL Building Materials Ltd. Hong Kong 100
Subsidiaries Country
% Shares
owned
ROCKWOOL Hungary Kft. Hungary 100
ROXUL ROCKWOOL Insulation India Ltd. India 100
ROXUL ROCKWOOL Technical Insulation India Pvt. Ltd. India 100
ROCKWOOL Italia S.p.A. Italy 100
ROCKWOOL Japan LLC. Japan 100
ROCKWOOL Korea Co. Ltd. Korea 100
SIA ROCKWOOL Latvia 100
UAB ROCKWOOL Lithuania 100
Chicago Metallic (Malaysia) Sdn. Bhd. Malaysia 100
ROCKWOOL Malaysia Sdn. Bhd. Malaysia 100
CMC Productos Perlitas S de R.L. de C.V. Mexico 100
Servicios Pearl de Mexico S de R.L. de C.V. Mexico 100
AS ROCKWOOL Norway 100
FAST Sp. z o.o. Poland 100
ROCKWOOL Global Business Service Center Sp. Z.o.o. Poland 100
ROCKWOOL Polska Sp. z o.o. Poland 100
ROCKWOOL Romania s.r.l. Romania 100
LLC ROCKWOOL Russia 100
LLC ROCKWOOL-NORTH Russia 100
LLC ROCKWOOL-Ural Russia 100
LLC ROCKWOOL-VOLGA Russia 100
ROCKWOOL Building Materials (Singapore) Pte Ltd. Singapore 100
ROCKWOOL Slovensko s.r.o. Slovakia 100
ROCKWOOL Peninsular S.A.U. Spain 100
Subsidiaries Country
% Shares
owned
ROCKWOOL AB Sweden 100
Flumroc AG Switzerland 100
Meilco Holding AG Switzerland 100
PAMAG Engineering AG Switzerland 100
ROCKWOOL GmbH Switzerland 100
ROCKWOOL (Thailand) Limited Thailand 100
Breda Confectie B.V. the Netherlands 100
ROCKWOOL B.V. the Netherlands 100
ROCKWOOL Insaat ve Yalitim Sistemleri San. Ve Tic. Ltd. Sti. Turkey 100
LLC ROCKWOOL Ukraine Ukraine 100
ROCKWOOL Middle East FZE UAE 100
ROCKWOOL Limited United Kingdom 100
ROXUL USA Inc. United States 100
Associated companies
AKUART A/S Denmark 20
RESO SA France 20
The German subsidiaries DEUTSCHE ROCKWOOL GmbH & Co. KG and
ROCKWOOL Operations GmbH & Co. KG, which have legal form of partnership,
make use of the exemptions provided by section 264b of the German
Commercial Code (HGB).
Parent company
ROCKWOOL International A/S
Notes
6.6 Group companies
ROCKWOOL Group Annual Report 2021
96
Denition of key gures and ratios
EBITDA
Earnings before depreciation, write-downs,
amortisations, nancial items and tax
EBIT
Earnings before nancial items and tax
Net working capital (NWC)
Trade receivables, other receivables and other current
operating assets less trade payables, other payables
and other current operational liabilities adjusted for
investment payables
Invested capital
NWC + intangible assets, tangible assets and right-
of-use assets less non-interest bearing liabilities and
investment payables
Net interest bearing debt
Cash less bank loans and other loans less bank debt
less lease liabilities
EBITDA margin (%)
EBITDA
x 100%
Net sales
EBIT margin (%)
EBIT
x 100%
Net sales
Earnings per share of DKK 10 (EUR 1.3)
Prot for the year excl. non-controlling interests
Average number of outstanding shares
Diluted earnings per share of DKK 10 (EUR 1.3)
Prot for the year excl. non-controlling interests
Diluted average number of outstanding shares
Cash ow per share of DKK 10 (EUR 1.3)
Cash ows from operating activities
Average number of outstanding shares
Dividend per share of DKK 10 (EUR 1.3)
Proposed dividend for the year
Number of shares at the end of the year
Book value per share of DKK 10 (EUR 1.3)
Equity end of the year excl. non-controlling interests
Number of shares at the end of the year
ROIC
EBIT
x 100%
Average invested capital including goodwill
Return on equity (%)
Prot for the year excl. non-controlling interests
x 100%
Average equity excl. non-controlling interests
Equity ratio (%)
Equity end of the year excl. non-controlling interests
x 100%
Total equity and liabilities at the end of the year
Payout ratio (%)
Proposed dividend for the year
x 100%
Prot for the year excl. non-controlling interests
Leverage ratio
Net interest-bearing debt
EBITDA
Financial gearing
Net interest-bearing debt
Equity end of the year
Market cap
Number of outstanding shares x share price
Growth in local currency
Growth rates excluding currency impact, as both
periods are using the same exchange rates.
Non-nancial key gures
For denition of the non-nancial key gures mentioned
on p. 8, please refer to the Sustainability Report.
RATIOS
The ratios have been calculated in accordance with
www.keyratios.org/ issued by CFA Society Denmark.
The ratios mentioned in the ve-year summary are
calculated as described in the denitions above.
EXCHANGE RATE
Average DKK/EUR
2021 7.44
2020 7.45
2019 7.4 6
2018 7.45
2017 7.44
Accounts of foreign subsidiaries are translated using the
exchange rates at the balance sheet date for balance
sheet items, and the periodic average exchange rates
for items of the income statement.
ROCKWOOL Group Annual Report 2021
97
Management’s statement
Board of Directors
Thomas Kähler
Chairman
Carsten Kähler
Connie Enghus Theisen
Carsten Bjerg
Deputy Chairman
Andreas Ronken
Christian Westerberg
Rebekka Glasser Herlofsen
Jørgen Tang-Jensen
Hedehusene, 9 February 2022
Registered Directors
Jens Birgersson
CEO
Kim Junge Andersen
CFO
ROCKWOOL Group Annual Report 2021
98
Independent Auditor’s Reports
ROCKWOOL Group Annual Report 2021
99
Independent Auditor’s Reports
(continued)
ROCKWOOL Group Annual Report 2021
100
Independent Auditor’s Reports
(continued)
Hellerup, 9 February 2022
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no 3377 1231
Kim Tromholt
State Authorised Public Accountant
mne33251
Rune Kjeldsen
State Authorised Public Accountant
mne34160
ROCKWOOL Group Annual Report 2021
101
Statement on Management’s Review
The activities in the parent company ROCKWOOL International A/S is to
support the Group through Group functions, holding of shares in the Group
companies and funding through the Group’s treasury function.
Income statement
Net sales in ROCKWOOL International A/S consists of income from constructing
and maintaining the Group's manufacturing facilities and royalty for the use of
patents and trademarks.
In 2021, sale from constructing and maintaining the Group's manufacturing facilities
was 103 MEUR (2020: 142 MEUR), a decrease of 39 MEUR as large capacity projects
were nalised during 2021.
ROCKWOOL International A/S holds the major patents and trademarks in the
Group and charges a royalty to the subsidiaries for the use of these rights.
Group companies paid royalty of 220 MEUR (2020: 216 MEUR).
Income from investments in subsidiaries was 238 MEUR (2020: 195 MEUR). The
increase is related to increased activity and protability in the Group companies.
Net nancial income amounted to 2 MEUR, an improvement of 6 MEUR compared
to 2020. In 2021, prot for the year totalled 292 MEUR against 241 MEUR in
2020.
Balance sheet
Total assets at year-end amounted to 2909 MEUR (2020: 2622 MEUR) and the
equity was 2360 MEUR (2020: 2063 MEUR).
Investment in subsidiaries was 2124 MEUR (2020: 1884 MEUR). The increase is
mainly due to increased activity and protability in Group companies.
Management considers the result to be acceptable.
For further information, please refer to ROCKWOOL Group Management’s
review on pp. 3-60.
Management's review
of ROCKWOOL International A/S
102
ROCKWOOL Group Annual Report 2021
102
Income statement –
ROCKWOOL International A/S
1 January – 31 December
MEUR Note 2021 2020
Net sales 2.1 323 358
Costs of raw material and consumables 74 117
Other external costs 105 98
Gross prot 144 143
Personnel costs 2.2 62 60
Depreciation, amortisation and write-downs 3.1, 3.2 13 19
Operating prot / EBIT 69 64
Income from investments in subsidiaries 2.3 238 195
Financial income 2.4 13 11
Financial expenses 2.4 11 15
Prot before tax 309 255
Tax on prot for the year 2.5 17 14
Prot for the year 2.6 292 241
Parent company
nancial statements for
ROCKWOOL International A/S
Income statement 103
Balance sheet 104
Statement of shareholders’ equity 105
Notes 106
103
ROCKWOOL Group Annual Report 2021
103
Balance sheet –
ROCKWOOL International A/S
Assets – as at 31 December
Equity and liabilities – as at 31 December
MEUR Note 2021 2020
Completed development projects 9 12
Acquired patents, licenses and trademarks 17 19
Development projects in progress 8 4
Intangible assets 3.1 34 35
Land and buildings 20 20
Other xtures and ttings, tools and equipment 7 7
Prepayments and property, plant and equipment in progress 4 4
Property, plant and equipment 3.2 31 31
Investment in subsidiaries 2 124 1 884
Receivables from subsidiaries 201 213
Fixed assets investments 3.3 2 325 2 097
Fixed assets 2 390 2 163
Inventories 1 -
Contract work in progress 3.4 21 13
Receivables from subsidiaries 409 333
Tax receivables 15 12
Other receivables 32 21
Prepayments 3.5 8 6
Receivables 485 385
Cash 33 74
Current assets 519 459
Assets 2 909 2 622
MEUR Note 2021 2020
Share capital 29 29
Revaluation reserve according to the equity method 296 71
Reserve for development costs 14 12
Retained earnings 1 919 1 857
Proposed dividend 102 94
Shareholders’ equity 2 360 2 063
Deferred tax 3.6 7 7
Other provisions 2 1
Provisions 9 8
Bank debt 3 105
Trade payables 19 19
Payables to subsidiaries 508 411
Other payables 10 16
Current liabilities 540 551
Liabilities 549 559
Liabilities and shareholders’ equity 2 909 2 622
ROCKWOOL Group Annual Report 2021
104
Statement of shareholders’ equity –
ROCKWOOL International A/S
MEUR
Share
capital
Revaluation
reserve
according to
the equity
method
Reserve
for
development
costs
Retained
earnings
Proposed
dividend
Total
equity
Shareholders’ equity 1/1 2021 29 71 12 1 857 94 2 063
Exchange rate adjustments - - 1 1 - 2
Prot for the year - 124 - 66 102 292
Development costs for the year - - 1 -1 - -
Currency revaluation of investments in subsidiaries - 71 - - - 71
Other adjustments - 30 - - - 30
Expensed value of RSUs issued - - - 1 - 1
Share buy-back programme - - - -3 - -3
Purchase of own shares - - - -4 - -4
Sale of own shares - - - 1 - 1
Dividend paid to the shareholders - - - 1 -94 -93
Shareholders’ equity 31/12 2021 29 296 14 1 919 102 2 360
Shareholders’ equity 1/1 2020 29 43 17 1 914 94 2 097
Exchange rate adjustments - - - 8 - 8
Prot for the year - 140 - 7 94 241
Development costs for the year - - -5 5 - -
Currency revaluation of investments in subsidiaries - -111 - - - -111
Other adjustments - -1 - - - -1
Expensed value of RSUs issued - - - 1 - 1
Share buy-back programme - - - -77 - -77
Purchase of own shares - - - -3 - -3
Sale of own shares - - - 2 - 2
Dividend paid to the shareholders - - - 0 -94 -94
Shareholders’ equity 31/12 2020 29 71 12 1 857 94 2 063
105
ROCKWOOL Group Annual Report 2021
Notes for
ROCKWOOL International A/S
1 1.1 Accounting policies 107
2 2.1 Net sales 108
2.2 Personnel costs 108
2.3 Income from investments
in subsidiaries 108
2.4 Financial income and
Financial expenses 108
2.5 Tax on prot for the year 108
2.6 Proposed distribution of prot 108
3 3.1 Intangible assets 109
3.2 Property, plant and equipment 109
3.3 Fixed assets investments 110
3.4 Contract work in progress 110
3.5 Prepayments 110
3.6 Deferred tax 110
4 4.1 Derivatives 111
4.2 Commitments and
contingent liabilities 111
4.3 Related parties 111
106
ROCKWOOL Group Annual Report 2021
Note 1
1.1 Accounting policies
The nancial statements of ROCKWOOL International
A/S have been prepared in accordance with the Danish
Financial Statements Act (accounting class D).
The nancial statements for 2021 are presented in EUR.
Changes in accounting policies
The accounting policies applied remain unchanged
from previous year.
The accounting policies are the same as for the con-
solidated nancial statements with the adjustments
described below. For a description of the Group’s
accounting policies, please refer to the consolidated
nancial statements.
Recognition and measurement in general
Income is recognised in the income statement as
earned.
All costs incurred in generating the year’s revenue are
also recognised in the income statement, including
depreciation, amortisation and impairment losses.
Value adjustments of nancial assets and liabilities
measured at fair value or amortised cost are also recog-
nised in the income statement.
Assets are recognised in the balance sheet when it is
considered probable that future economic benets will
ow to the company and the value of the asset can be
measured on a reliable basis. Liabilities are recognised
in the balance sheet when they are considered
probable and can be measured on a reliable basis. At
initial recognition, assets and liabilities are measured at
cost. Assets and liabilities are subsequently measured
as described below for each item.
Net sales
The company produces and sells machinery and consul-
tancy service. The projects typically include one deliver-
able. Revenue from the projects is recognised over time
based on the progress and is based on the price of the
projects. As the work is done at the customer's site,
control is transferred along with the project progress.
Recognition is based on actual costs spent relative to
the total estimated costs for the project, as this method
is estimated to reect the transfer of control. The credit
terms are normally end of month plus 20 days.
Royalty is received for the use of the ROCKWOOL
brand and technology. Royalty is based on the level of
sales in the subsidiaries and is recognised when earned
according to the terms in the agreement.
Intangible assets
The accounting policies for intangible assets follow
those of the Group with the exception of goodwill,
which is amortised over a period of 10 years using the
straight-line method.
An amount equal to the total capitalised development
costs after tax is recognised under Shareholders’ equity
in the Reserve for development costs.
Fixed assets investments
Investments in subsidiaries are recognised initially at
cost and measured subsequently using the equity meth-
od. The company’s share of the equity of subsidiaries,
based on the fair value of the identiable net assets on
the acquisition date, minus or plus unrealised inter-
company prots or losses, with addition of any residual
value of goodwill, is recognised under Investments in
subsidiaries in the balance sheet.
If the shareholders’ equity of subsidiaries is negative
and ROCKWOOL International A/S has a legal or
constructive obligation to cover the company’s negative
equity, a provision is recognised. Net revaluation of
investments in subsidiaries is recognised under Share-
holders’ equity in the Revaluation reserve according to
the equity method. The reserve is reduced by payments
of dividends to the parent company and adjusted to
reect other changes in the equity of subsidiaries.
The proportionate share of the net prots of subsid-
iaries less goodwill amortisation is recognised under
Income from investments in subsidiaries in the income
statement. Goodwill in subsidiaries is amortised over a
period of 10 years using the straight-line method.
Inventories
Inventories are measured at cost in accordance with the
FIFO principle. Obsolete goods, including slow-moving
goods, are written down.
Contract work in progress
Contract work in progress is measured at the sales value
of the work performed, calculated on the basis of the
degree of completion. The degree of completion is cal-
culated as the proportion of the contract costs incurred
in relation to the contract's expected total costs. When
it is probable that the total contract costs will exceed
the total revenue on a contract, the expected loss is
recognised in the income statement.
Payments received on account are deducted from the
sales value. The individual contracts are classied as re-
ceivables when the net value is positive and as liabilities
when the net value is negative.
Receivables from subsidiaries
Receivables from subsidiaries are recognised at
amortised costs and are subsequently measured after
deduction of allowance for losses based on an individu-
al assessment.
Leases
Leases in which a signicant portion of the risks and
rewards of ownership are retained by the lessor are
classied as operating leases. Payments made under
operating leases are charged to the income statement
on a straight-line basis over the period of the lease.
Dividend
The dividend proposed for the nancial year is shown as
a separate item under Shareholders’ equity.
Cash ow statement
ROCKWOOL International A/S has in accordance with
the Danish Financial Statements Act, Section 86 (4) not
prepared separate cash ow state ments. Please refer to
the consolidated cash ow statements.
References to notes to the consolidated nancial state-
ments for the following notes, see information in the
consolidated nancial statements:
– Own shares – see note 5.5
– Share capital – see note 5.6
– Auditor’s fee – see note 6.4
ROCKWOOL Group Annual Report 2021
107
MEUR 2021 2020
Revenue from projects 103 142
Royalties and other fees 220 216
Net sales 323 358
2.2 Personnel costs
MEUR 2021 2020
Wages and salaries 54 54
Expensed value of RSUs issued 3 1
Pension costs 5 5
Personnel costs 62 60
Average number of employees in ROCKWOOL International A/S 435 448
Reference is made to note 2.2 and 2.3 to the consolidated nancial statements concerning remuneration
of the Board of Directors and the Registered Directors.
2.3 Income from investments in subsidiaries
MEUR 2021 2020
Share of net prot/(loss) 248 205
Amortisation of goodwill -10 -10
Income from investments in subsidiaries 238 195
Note 2
2.1 Net sales
MEUR 2021 2020
Interest income 1 -
Interest income from subsidiaries 3 4
Foreign exchange gains 9 7
Financial income 13 11
MEUR 2021 2020
Interest expenses etc. 6 6
Interest expenses to subsidiaries 3 1
Foreign exchange losses 2 8
Financial expenses 11 15
2.5 Tax on prot for the year
MEUR 2021 2020
Current tax for the year 15 11
Change in deferred tax - 1
Withholding taxes 2 3
Adjustment in current and deferred tax in previous years - -1
Tax on prot for the year 17 14
2.6 Proposed distribution of prot
MEUR 2021 2020
Proposed distribution of prot:
Proposed dividend to shareholders 102 94
Revaluation reserve according to equity method 124 140
Retained earnings 66 7
Total prot 292 241
2.4 Financial income and Financial expenses
ROCKWOOL Group Annual Report 2021
108
Note 3
3.1 Intangible assets
Comments
Completed development projects and development projects in progress mainly comprise software development.
MEUR
Completed
development
projects
Acquired
patents,
licenses and
trademarks
Development
projects in
progress
2021
Total
2020
Total
Cost 1/1 86 44 4 134 141
Exchange rate adjustments 1 - - 1 2
Additions for the year - - 6 6 7
Transfer of development projects in progress 2 - -2 - -
Disposals for the year -2 - - -2 -16
Cost 31/12 87 44 8 139 134
Amortisation and write-downs 1/1 74 25 - 99 98
Exchange rate adjustments - - - - 2
Amortisation for the year 6 2 - 8 12
Write-down for the year - - - - 3
Disposals for the year -2 - - -2 -16
Amortisation and write-downs 31/12 78 27 - 105 99
Carrying amount 31/12 9 17 8 34 35
3.2 Property, plant and equipment
Comments
Of the total net book value of land and buildings, 1 MEUR (2020: 1 MEUR) represent land not subject to depreciation.
MEUR
Land and
buildings
Other xtures
and ttings,
tools and
equipment
Prepayments
and property,
plant and
equipment in
progress
2021
Total
2020
Total
Cost 1/1 37 20 4 61 56
Exchange rate adjustments - -1 - -1 -
Additions for the year - - 5 5 6
Transfer of property, plant and equipment in
progress
1 4 -5 - -
Disposals for the year - -1 - -1 -1
Cost 31/12 38 22 4 64 61
Depreciation and write-downs 1/1 17 13 - 30 27
Exchange rate adjustments - -1 - -1 -
Depreciation for the year 1 4 - 5 4
Disposals for the year - -1 - -1 -1
Depreciation and write-downs 31/12 18 15 - 33 30
Carrying amount 31/12 20 7 4 31 31
ROCKWOOL Group Annual Report 2021
109
Comments
Prepayments consist of prepaid insurance, prepaid subscriptions and other prepaid cost related to subsequent
nancial years.
3.6 Deferred tax
MEUR 2021 2020
Deferred tax 1/1 7 5
Change in deferred tax recognised in prot and loss - 1
Deferred tax for the year recognised in equity - 1
Deferred tax 31/12 7 7
3.5 Prepayments
Note 3
3.3 Fixed assets investments
MEUR
Investments in
subsidiaries
Receivables from
subsidiaries
2021
Total
2020
Total
Cost 1/1 1 813 213 2 026 1 982
Exchange rate adjustments 1 - 1 8
Additions for the year 16 4 20 119
Reductions/disposals for the year -2 -16 -18 -83
Cost 31/12 1 828 201 2 029 2 026
Value adjustments 1/1 71 - 71 43
Exchange rate adjustments 71 - 71 -111
Share of net prot 248 - 248 205
Amortisation of goodwill -10 - -10 -10
Dividends received -114 - -114 -55
Other adjustments 30 - 30 -1
Value adjustments 31/12 296 - 296 71
Carrying amount 31/12 2 124 201 2 325 2 097
3.4 Contract work in progress
MEUR 2021 2020
Sales values of work performed 206 293
Invoiced on account -185 -280
Contract work in progress, net 21 13
Recognised as follows:
Contract work in progress (assets) 21 13
ROCKWOOL Group Annual Report 2021
110
Note 4
4.1 Derivatives
Reference is made to note 5.2 to the consolidated nancial statements concerning derivatives.
Comments
The policy is not to hedge exchange rate risks in long-term investments in subsidiaries.
When relevant, external investment loans and Group receivables are, as a general rule, established in the local cur-
rency of the company involved, while cash at bank and in hand are placed in the local currency.
In the few countries with ineffective nancial markets, loans can be raised and surplus liquidity placed in DKK or EUR,
subject to the approval of the parent company’s nance function.
Most Group receivables that are not established in DKK or EUR are hedged via forward agreements, currency loans
and cash pools or via the SWAP market.
To ensure adequate nancial reserves as dened by the Board of Directors, investment loans can be raised on a
continuous basis to partly cover new investments and to renance existing loans.
Ownership clauses have been issued and/or deed of postponements in connection with intercompany receivables.
Please refer to note 4.2.
4.2 Commitments and contingent liabilities
Comments
Operational lease commitments in 2021 and 2020 amount to less than 1 MEUR. The majority of lease commitments
expire within one year from the balance sheet date.
There are no contingent liabilities neither this year nor last year.
For certain receivables amounting to 192 MEUR (2020: 173 MEUR) deeds of postponement have been given.
4.3 Related parties
ROCKWOOL International A/S has registered the following shareholders holding more than ve percent of the share
capital or the votes:
2021
Share
capital Votes
ROCKWOOL Foundation, DK-1360 Copenhagen K 23% 28%
15. Juni Fonden, DK-2970 Hoersholm 6% 11%
Dorrit Eegholm Kähler, DK-2830 Virum 4% 6%
ROCKWOOL Group Annual Report 2021
111
The ROCKWOOL
®
trademark
The ROCKWOOL trademark was initially registered in
Denmark as a logo mark back in 1936. In 1937,
it was accompanied with a word mark registration;
a registration which is now extended to more than 60
countries around the world.
The ROCKWOOL trademark is one of the largest assets
in ROCKWOOL Group, and thus well protected and
defended by us throughout the world.
ROCKWOOL Group’s primary trademarks:
ROCKWOOL
®
Rockfon
®
Rockpanel
®
Grodan
®
Lapinus
®
Additionally, ROCKWOOL Group owns a large number
of other trademarks.
Disclaimer
The statements on the future in this report, includ-
ing expected sales and earnings, are associated with
risks and uncertainties and may be affected by factors
inuencing the activities of the Group, e.g. the global
economic environment, including interest and exchange
rate developments, the raw material situation, produc-
tion and distribution-related issues, breach of contract
or unexpected termination of contract, price reduc-
tions 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
prots, whether in an action of contract, negligence or
other action, arising out of or in connection with the use
of information in this report.
©
ROCKWOOL International A/S 2022
All rights reserved
Photography credits
Cover (Sergey Alimov)
P. 4 (Anders Koch)
P. 20 (@Patrick Tourneboeuf / RMN / Paris 2024)
P. 21 (Rob Driessen)
P. 25 (Simon Blackley)
PP. 30-31 (Jonathan Nackstrand & Tom Lovelocke/
SailGP)
PP. 48-51 (Anders Koch)
P. 48 (Annalise Taylor - photo of Carsten Kähler)
P. 48 (Johannes Wosilat - photo of Andreas Ronken)
Design and production
ROCKWOOL Marketing Shared Service Center
Released
9 February 2022
ISSN
ISSN 1904-8653 (print)
ISSN 1904-8661 (online)
