Remuneration Report 2023

Corporate Governance

Report 2023

our colleagues’ ability to adapt to changing

circumstances helped us to regain a more

normal profitability level for the year.

Considering the market conditions, our 2023

Sales were 3.6 BEUR, down four percent in

local currencies compared to 2022, a much

smaller decline than expected at the start of

2023. On profitability, the EBIT margin came in

at 14.3 percent, good progress from the low in

stone wool's qualities (i.e. non-combustibility,

acceptance. In Europe, sales in the United

Kingdom grew well, driven by an increased

focus on fire safety.

The significant improvement in the EBIT margin

was positively affected by country and product

application mix as well as productivity

improvements, especially in our North

people working with and for us, our goal every

year is zero fatalities, zero serious accidents

(LTI) rate. This year, we had two serious

accidents, while the overall LTI rate continued

the trend downward. Most important, we had

no fatalities.

increased emphasis on leading performance

factories will be converted either to electricity,

or in some cases, biogas (or natural gas where

biogas is not available).

This is a significant undertaking that will take

years to complete, but we are committed

to reaching our goals. As with any major

investment plan, there are many factors when

it comes to converting existing factories to

electric melting and building new ones. This

is covered in more detail in our Sustainability

While market conditions in North America look

is welcome news. However, its implementation

and impact on the pace and scale of building

renovation will likely be slower than we would

like to see.

Medium-term, the revised directive, with its

zero-emission buildings standard, will have

a positive impact on demand for insulation.

Likewise, the directive's requirement to install

rooftop solar panels on all new public and non-

residential buildings of a certain size by 2027

Up 29% compared to 2022

MEUR Q4 2023 Q4 2022 2023 2022

External net sales 240 248 828 873

EBIT 11 30 87 90

EBIT margin 4.7% 11.9% 10.5% 10.3%

Our indoor acoustic systems combine stone

ceiling and wall systems that create beautiful,

comfortable spaces. Our acoustic products are

easy to install, durable and help reduce noise

wellbeing and indoor comfort.

Sales for Rockfon in 2023 grew in several

markets around the world, mainly driven by

government-sponsored and private renovation

programmes. Additionally, growth in data

presents significant opportunities for Rockfon

stone wool acoustical solutions. However, we

do see a slowdown in office real estate across

major cities.

Meanwhile, the design community continues to

of stone wool. In Europe, for example, we see

putting greater focus on Indoor Environmental

Quality (IEQ) and its role in occupant health and

wellbeing. Our stone wool acoustic systems are

well-suited to meet these challenges and the

high standards of the leading green building

rating systems such as LEED, WELL and DNGB.

Grodan’s soilless rootzone management

system is used in Controlled Environment

Agriculture (CEA), and is designed to grow food

Using Grodan in CEA delivers higher yields while

using less water, less land and less fertilizer.

Our combination of stone wool growing media,

decisions.

In Europe, the fresh produce business slowed

as greenhouse growers cut costs by, among

in 2022, the North American cannabis market

already in 2022. In 2023, the transformation from

outdoor to indoor and out-of-soil strawberry

promising partnership trials that focus on

extending strawberry cultivation throughout

Overall, we see solid growth in CEA in several

Asia.

Our cladding and other boards are robust,

with modern architectural trends such as organic

safety, while also providing cost efficiency and

ease of installation.

In 2023, Rockpanel was affected by the overall

construction industry slowdown but was able to

maintain a solid business. In Norway, one of our

We continued our digitalisation efforts with the

launch of MyRockpanel in 2023, a loyalty

In order to realise future growth in line with our

added in 2024.

Formerly known as Rockzero, we changed the

name to ROCKWOOL Prefab Building Systems

in 2023. We made the change to leverage the

strength of the ROCKWOOL brand to reach

to help cities and other populated areas

become more resilient to the effects of climate

change. And while lower construction activity

was challenging in 2023, we identified this as a

common challenges for urban areas related to

globally, this business remains stable, and

our portfolio is well-positioned to compete

successfully on quality and reliability as well as

future development such as electric cars and

new, stricter regulations on car brake emissions.

Our railway vibration products are sold under

the Rockdelta brand. The Rockdelta portfolio

is well accepted in the Nordic markets

and gaining popularity in Canada. Overall,

Rockdelta sales performance remains stable.

ROCKWOOL was one of the first companies in our industry to commit and contribute actively

to the UN Sustainable Development Goals (UN SDGs) framework.

some greater than others. In 2023, we modified the Group safety goal to be “zero fatalities

and zero serious accidents”. We will continue to prioritise a low Lost Time (LTI) Incidents

frequency rate.

In 2023, there were no fatalities but two serious accidents. We reduced our LTI rate by 14

percent, from 2.7 in 2022 to 2.4. A simple motto ‘If it isn’t safe, it isn’t worth doing’ is a daily

reminder. We have also introduced a series of initiatives in ROCKWOOL production facilities

such as management safety walks and local campaigns with a focus on different safety

aspects including fall and slip prevention. Group SHE audits at selected factories reinforce the

company’s safety culture and collective sense of duty and awareness.