ROCKWOOL Group
Annual Report 2024
Contents
Management’s review
Introduction
6 Message from Chairman and CEO
10 Five-year overview
11 Financial highlights
12 Sustainability highlights
Strategy and business
14 Outlook 2025
16 The ROCKWOOL purpose and strategy
17 Our business model
18 Insulation segment – Business update
20 Systems segment – Business update
22 Financial performance
25 Quarterly financial figures
Governance and shareholder information
27 Financial risk management
29 Responsible tax
30 Corporate governance
34 Board of Directors
37 Group Management
40 Shareholder information
Sustainability statement
General information
44 Basis for preparation
46 Sustainability governance
51 Strategy
55 Impact, risk and opportunity management
Environmental information
63 E1 Climate change
75 E2 Pollution
79 E3 Water and marine resources
83 E5 Resource use and circular economy
90 EU Taxonomy
Social information
98 S1 Own workforce
109 S3 Affected communities
112 S4 Consumers and end-users
Governance information
117 G1 Business conduct
Appendix
122 References to other EU legislations
Financial statements
123 Consolidated financial statements
168 Management’s statement
169 Independent auditor’s Reports
173 Independent auditor’s limited assurance report on the sustainability
statement
177 Parent company financial statements
Other reports
Remuneration
Report 2024
ROCKWOOL A/S
Report on Danish
Corporate Governance
recommendations 2024
Corporate Governance
Report 2024
3
ROCKWOOL Group Annual Report 2024
Management’s
review
Introduction
6 Message from Chairman and CEO
10 Five-year overview
11 Financial highlights
12 Sustainability highlights
Strategy and business
14 Outlook 2025
16 The ROCKWOOL purpose and strategy
17 Our business model
18 Insulation segment – Business update
20 Systems segment – Business update
22 Financial performance
25 Quarterly financial figures
Governance and shareholder information
27 Financial risk management
29 Responsible tax
30 Corporate governance
34 Board of Directors
37 Group Management
40 Shareholder information
Message from Chairman and CEO
Dear stakeholders,
As we reflect on the achievements and challenges of 2024, the year
stands as a significant milestone for ROCKWOOL Group. In addition
to making strong progress in advancing our strategic agenda, we
also welcomed new leadership to guide us on this journey forward.
Jes Munk Hansen joined us as Chief Executive Officer in September
2024, bringing a wealth of experience in building materials, and a
shared passion for ROCKWOOL’s mission to improve the lives of
people and the planet through innovative, sustainable solutions for
the built environment.
Looking back at 2024
ROCKWOOL’s good performance in both revenue and earnings reflects
the Group’s ability to adapt to different economic environments,
manage costs and price, and adjust our operational business to the
conditions at hand.
Revenue for 2024 was 3,855 MEUR, up six percent in local currencies
compared to 2023, excluding a minor impact from the two acquisitions
made during fourth quarter 2024. Broadly, key markets in Europe and
North America delivered good volume growth, which contributed to
driving the revenue results.
Western European residential new build construction activity remained
subdued while the renovation market proved more resilient. Revenue
in Eastern Europe was strong, with several markets, including Romania
and Russia reporting double-digit growth. Main markets in South and
East Asia also delivered double-digit revenue growth.
We are pleased with the Group’s overall profitability, with the EBIT
margin ending at 17.5 percent, up 3.2 percentage points compared to
2023. This result is driven in part by the high productivity and efficiency
of our operations, the organisation’s ability to adapt to evolving market
conditions, and overall lower than expected energy costs for a good
part of the year. We are especially pleased with the progress for our
North America business, which contributed significantly to the results.
Our company is financially strong, with no net debt and a solid cash
flow, which is important as we continue to invest for future growth.
Safety is always first
We’re a manufacturing business and safety must always be our top
priority. If it’s not safe, it’s not worth doing is how we expect all our
employees and partners to think and behave. For our employees and
those working with us, our goal every year is the same: zero fatalities,
zero serious accidents, and a steady reduction in the lost time incident
(LTI) rate.
Sadly, an external contractor died while working for us in our factory in
Rayong, Thailand. We conducted a root cause analysis followed by a
review of the incident with the CEO and Board of Directors. Necessary
preventive actions were then shared with all factories to avoid a similar
incident from occurring again.
CEO Jes Munk Hansen and Chairman Thomas Kähler
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ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Introduction
The coming wave of building renovations
The EU Energy Performance of Buildings Directive (EPBD) is a
cornerstone policy in Europe’s pursuit of a more sustainable, energy
efficient built environment. For ROCKWOOL, whose purpose is founded
on offering safe, circular and high-performing insulation solutions, this
directive holds profound significance.
The directive underlines the critical role of renovation in achieving
climate neutrality by 2050. With nearly 75 percent of Europe’s buildings
deemed energy inefficient, the EPBD emphasises upgrading insulation
as a cost-effective, impactful solution. Moreover, the EPBD’s emphasis on
life-cycle sustainability resonates with our commitment to circularity.
Constructing new and renovating existing buildings with energy
efficiency foremost in mind is gaining traction outside Europe as well.
There is now an opportunity to help create a new generation of energy
efficient, fire safe, and circular buildings. ROCKWOOL is committed
to working with policymakers and other stakeholders global ly to help
realise this ambition.
Investing in growth and decarbonisation
We are optimistic about the future and continue investing in
building new capacity and improving existing technologies as well
as in decarbonising our operations. In terms of adding capacity, we
committed in 2024 to building new factories in the United States,
Sweden and India and additional production lines in Romania and the
U.S.; bought land for a future factory in the United Kingdom; acquired
Vietnam’s largest stone wool manufacturer; and also acquired a leading
UK supplier of external thermal insulation composite façade systems.
These investments will help us meet the growing demand to insulate
a new generation of energy efficient, thermally comfortable, fire-
safe buildings. We remain fully committed to building the previously
announced factory in France, while at the same time acknowledging that
the project has been delayed for longer than expected. As a result, we
are reallocating near-term investments to other capacity and conversion
initiatives as we continue working to advance the project in France.
We made good progress last year on decarbonisation, including
Board approval for electrification of three existing production lines
in the Netherlands and France, and for building new electric-melting
production lines in Romania, the United States and Sweden. Further,
Group Management approved investment into the conversion of a
line in Germany from coal to natural gas. Finally, we purchased green
electricity, or EACs (Energy Attribute Certificates), covering all electricity
used by our European factories in 2024.
The most important achievement was electrifying the melting process at
our factory in Flums, Switzerland. With the new electric furnace, powered
entirely by certified, renewable electricity from Swiss hydropower, factory
CO
2
emissions are down 75 percent, which is equivalent to 25,000
tonnes of CO
2
per year.
Electrification and access to cost competitive renewable electricity are
key elements in ROCKWOOL’s green transition. All too often, however,
connecting to the grid in order to secure a supply of low-emission, high-
voltage electricity, can take years. In our view, governments in Europe
and North America can help by ensuring sufficient funding for the
construction of green energy infrastructure and minimising the overall
energy demand as much as possible by accelerating energy efficiency
initiatives in areas like buildings.
Outlook
Political uncertainty is likely to continue in some of our main markets.
However, we expect a continuation of the market dynamics we saw
in 2024 characterised by generally slow growth in the European
construction sector, modest growth in North America, and pockets of
isolated growth in Asia.
After a long period of relatively stable sales prices in aggregate, we have
initiated modest price increases for the coming season. This is necessary
to offset a predicted higher cost on materials and energy and to continue
the investments in capacity, sustainability and market coverage.
Despite political, market, and economic uncertainties the outlook for
2025 revenue is a low single-digit percent growth (in local currencies)
with an EBIT margin around 16 percent for 2025. As we continue to
invest in building new capacity and improving existing technologies
as well as in decarbonising our operations, we expect investments of
around 450 MEUR for 2025, excluding acquisitions.
The Board has initiated another share buy-back programme on 7
February 2025 running up to 12 months and totalling up to 150 MEUR.
The Board will at the Annual General Meeting in 2026 propose that the
shares purchased under this programme are cancelled.
In closing, we would like to extend our gratitude and appreciation to our
colleagues for their continued commitment and hard work this past year.
And to our customers and suppliers, thank you for your support and trust.
Thomas Kähler Jes Munk Hansen
Chairman CEO
MANAGEMENT’S REVIEW | Introduction
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ROCKWOOL Group Annual Report 2024
We produce high-performing solutions that help create energy
efficient, fire-safe, and circular buildings and communities.
Austria
Belgium
Bulgaria
Canada
China
Croatia
Czechia
Denmark
Estonia
Finland
France
Germany
Hungary
India
Indonesia
Italy
Japan
Korea
Latvia
Lithuania
Malaysia
Norway
Philippines
Poland
Romania
Russia
Singapore
Slovakia
Spain
Sweden
Switzerland
Thailand
The Netherlands
Ukraine
United Arab Emirates
United Kingdom
United States
Vietnam
World leader with
local presence
Office and factory locations
42
factories
in 23 countries
120
+
Countries in which
we have sales
*ROCKWOOL previously counted ‘manufacturing facilities’ based on the number of brands producing at a given location. For simplicity, we now count ‘factory locations’ regardless of which brands produce there. The number of physical locations has not changed.
Factories
Sales offices
MANAGEMENT’S REVIEW | Introduction
9
ROCKWOOL Group Annual Report 2024
Five-year overview
2024
(MDKK)
2024
MEUR
2023
MEUR
2022
MEUR
2021
MEUR
2020
MEUR
Statement of profit and loss
Revenue 28,757 3,855 3,620 3,907 3,088 2,602
EBITDA 7,010 940 779 638 602 522
Amortisation, depreciation and impairment 1,964 263 261 236 201 184
EBIT 5,046 677 518 402 401 338
Financial items 150 19 4 -44 -8 -13
Profit before tax 5,196 696 522 358 393 325
Profit for the year 4,105 550 389 273 303 251
Statement of financial position
Non-current assets 19,742 2,647 2,361 2,301 2,129 1,927
Current assets 9,256 1,241 1,193 1,127 951 817
Total assets 28,999 3,888 3,554 3,428 3,080 2,744
Total Equity 23,015 3,086 2,804 2,580 2,394 2,092
Non-current liabilities 1,525 205 199 206 163 158
Current liabilities 4,456 597 551 642 523 494
Net interest-bearing cash / (debt) 2,087 281 239 -23 76 95
Net working capital 2,715 364 358 441 306 213
Invested capital 21,087 2,827 2,562 2,596 2,294 1,961
Gross investment in property, plant and equipment 2,804 376 321 328 301 335
Statement of cash flows
Cash flow from operating activities 6,093 817 707 394 426 438
Cash flow from investing activities 3,376 453 312 334 310 362
Free cash flow 2,717 364 395 60 116 76
2024
(MDKK)
2024
MEUR
2023
MEUR
2022
MEUR
2021
MEUR
2020
MEUR
Others
R&D costs 500 67 64 55 45 41
Number of patents granted 224 224 244 179 253 148
Number of full-time employees (year-end) 12,493 12,493 11,993 12,197 11,968 11,448
Ratios
EBITDA margin 24.4% 24.4% 21.5% 16.3% 19.5% 20.1%
EBIT margin 17.5% 17.5% 14.3% 10.3% 13.0% 13.0%
Dividend payout ratio 33.2% 33.2% 32.1% 37.3% 33.5% 37.7%
ROIC 25.1% 25.1% 20.1% 16.4% 18.8% 17.6%
Return on equity 18.7% 18.7% 14.4% 11.0% 13.5% 11.9%
Equity ratio 79.3% 79.3% 78.9% 75.3% 77.7% 76.1%
Leverage ratio -0.30 -0.30 -0.31 0.04 -0.13 -0.18
Financial gearing -0.09 -0.09 -0.09 0.01 -0.03 -0.05
For definitions of key figures and ratios see p. 166.
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ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Introduction
Financial highlights
2,800
3,200
2,400
2,000
1,600
2,000
1,500
3,000
4,000
2,500
1000
300
200
500
400
600
700
800
100
0
21%
24%
18%
30%
27%
15%1,200
500
400
300
200
100
0
11%
4%
18%
32%
-3%
-10%
EBIT
EBIT margin
EBIT
677MEUR
Up 31% compared to 2023
Maintenance
Capacity
Sustainability
Acquisitions
CAPEX excl. acquisitions
387MEUR
of which 68% is
taxonomy-aligned
Revenue
Growth (reported)
Revenue increased
6%
in local currencies
Invested capital
ROIC
ROIC
25.1%
Up from 20.1% in 2023
Revenue & revenue growth
(MEUR)
EBIT & EBIT margin
(MEUR)
ROIC & Invested capital
(MEUR)
Investments
(MEUR)
18%
16%
10%
2024
3,500 25%
202220212020 2023
2024202220212020 2023
2024202220212020 2023
2024202220212020 2023
14%
12%
11%
13%
15%
17%
MANAGEMENT’S REVIEW | Introduction
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ROCKWOOL Group Annual Report 2024
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ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Introduction
Outlook 2025
1 https://tradingeconomics.com/united-states/building-permits
Market review
Economic growth is projected to remain stable in 2025 albeit at a low
level in Europe and only modestly higher in the United States. Lower
inflation and ongoing monetary easing in many economies could
provide a moderate boost to global economic activity. However,
uncertainty prevails, with risks stemming from geopolitical conflicts,
rising trade tensions and elevated borrowing costs in many parts of
the world.
While leading international organisations including the IMF and OECD
predict that general economic conditions in Europe will improve in
2025, current conditions remain sluggish, with Germany and the war in
Ukraine continuing to weigh on the region.
Construction market implications
For the European construction sector, interest rates and inflation will
play a big role in that growth. Continuing declines in European interest
rates and inflation would make investments in new construction and
building renovation as well as home mortgages more attractive. On the
flip side, persistent inflation – hovering above the two percent target
preferred by central banks – might mean the impact of those rate cuts
could take longer to have an impact on the construction sector.
After declining 1.5 percent in 2024, a forecasted increase in building
permits in Europe indicates a potential rebound in construction activity.
The pace of any recovery may vary across Europe, influenced by local
economic policies and market conditions and outcome of national
elections in for instance Germany will have an impact on the recovery.
The outlook for residential building permits in North America in 2025 is
also cautiously optimistic. A 5.2 percent increase in building permits in
November 2024, the sharpest increase since February 2023
1
, suggests
a continued recovery in the housing market, driven by factors such as
stabilising material costs and improving economic conditions. Overall,
the market is expected to gradually improve, reflecting a more stable
and balanced housing sector.
Construction output in the Asia-Pacific region continues to gain
momentum. In India, construction industry growth is driven by robust
investments in manufacturing, data centres, semiconductors, energy,
and transportation infrastructure. China will focus more on stabilising
the real estate market in 2025.
Outlook 2025
Political uncertainty is likely to continue in some of our main markets.
However, we expect a continuation of the market dynamics we saw
during 2024 characterised by generally slow growth in the European
construction sector, modest growth in North America, and pockets of
isolated growth in Asia.
In Europe, we will intensify our work at the EU member state level to help
ensure effective transposition of the EU Energy Performance of Buildings
Directive into national legislation. This is important given the opportunities
the Directive creates to promote our non-combustible insulation as an
optimal way to achieve energy efficiency and improved fire safety in
buildings. However, we have not included any significant uptake in energy
efficiency-driven renovations in the outlook. We will continue to prepare
for this potential by investing in insulation capacity in Europe.
The change in administration in the United States is not expected to
have any significant impact on the underlying demand for our non-
combustible insulation products. Stone wool market share in the United
States is still relatively small. Demand is largely driven locally through
greater awareness and knowledge of our products, sales channel
expansion and broader product availability.
For the Insulation segment in Europe, we assume the low level of
construction activities will continue in all markets. In the important
German market, we expect to maintain the market share regained in
2024 and forecast low single-digit growth, in line with the underlying
market growth. Similarly, we expect a stable to low single-digit growth
for the insulation business in France.
In Eastern Europe, the construction markets are expected to be under
pressure. With the excess capacity there, we anticipate a single-digit
revenue decline for this region. Management in Russia informs, that the
outlook for 2025 is more subdued compared to the unexpected growth
we observed in 2024. Therefore, declining volume for the business in
Russia is expected.
In North America, after a year of significant growth, driven by
manufacturing and commercial building construction, we forecast a
more modest market development for 2025. We expect good growth
for our North America insulation business, though at a slower pace
than in 2024, but still higher than in Europe. Until the new capacity that
we have already initiated in the United States comes online, we predict
that demand in the next few years will exceed local capacity, even if we
are still able to optimise the current output from the existing factories.
Until the new capacity is available, we plan to meet part of the demand
14
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
by importing from our European factories, even if this supply is more
costly. Our businesses in North America have over many years been
intertwined across borders, and a trade conflict would have an impact.
We will monitor developments closely and as always navigate through
uncertainties to continue servicing our customers while at the same
time being prepared to reduce any financial impact for the Group.
With our current understanding of the evolving tariff situation, we
expect to manage these uncertainties with minimum impact on the
overall Group results.
Included in the Insulation segment outlook for 2025 is the full-year
impact from the two acquisitions made in 2024, Wetherby Building
Systems Ltd. in England and Khai Hoan Insulation in Vietnam.
Combined, it is expected that they will contribute around one percent
of growth for the Group in 2025.
The four businesses under Systems segment are expected to deliver
positive growth for 2025. Rockfon is benefitting from a growing
presence in the design segment with a portfolio of acoustic solutions
for ceilings and walls in Europe. Combined with a small but growing
presence in North America, we expect Rockfon to deliver low to mid-
single-digit growth for 2025. The Grodan business in Europe and North
America is expected to remain stable in 2025. Increased competition
from other growing media products and continued market uncertainty
among producers of medicinal cannabis is expected to offset the
business’ growth from expansion into new markets and supplying
producers of other vegetable types.
After a long period of relatively stable sales prices in aggregate, we
have initiated modest price increases for the coming season. This is
necessary to offset a predicted higher cost on materials and energy
and to continue the investments in capacity, sustainability and market
coverage. Despite political, market and economic uncertainties, and
that it is still early in the construction season, the outlook for 2025
revenue is a low single-digit percent growth (in local currencies),
including the positive impact from the two aforementioned acquisitions
made in 2024. Given the unusual seasonal development during 2024,
we predict that the business during 2025 will have a more traditional
seasonal performance. Hence growth in the first half will be more
subdued and increasing in the second half of the year.
Two notable developments had a significant impact on our 2024
business performance. First, for the second year in a row, revenue
in the United States exceeded 10 percent of Group revenue. More
importantly, however, ROCKWOOL profitability in the U.S. market
exceeded the Group average for the first time. We achieved this
milestone through a combination of strong demand for our non-
combustible insulation products as well as high factory productivity.
We believe this is a sustainable development for 2025 as well.
The second notable development in 2024 was the unexpected
higher profitability from the business we hold in passive ownership in
Russia. In addition, the exchange rate of the Russian Rouble remained
stable, which allowed for currency conversion into Euros based on the
inflation-affected local performance. For 2025, we have not assumed
a similar situation. Consequently, we forecast Group profitability to be
negatively impacted by around one percentage point.
Further, we have assumed a higher level of operating expenses during
2025. This is driven by a decision to increase resource allocations in
several areas, primarily for the planned investments in capacity and
sustainability-related projects as well as a higher number of digital
initiatives benefitting both the factories and our customers.
Based on the above assumptions, we forecast an EBIT margin around
16 percent for 2025. This includes an expected donation of 100 MDKK
to the Foundation for Ukrainian Reconstruction. The donation is
pending approval at the Annual General Meeting in April 2025.
We will in 2025 continue investing in building new capacity and
improving existing technologies as well as in decarbonising our
operations. In 2024, we committed to building new factories in the
United States, Sweden and India and additional production lines
in Romania and the United States; bought land for a future factory
in the United Kingdom; and acquired Vietnam’s largest stone wool
manufacturer and a leading UK supplier of external thermal insulation
composite façade systems. We remain fully committed to building
the previously announced factory in France, while at the same time
acknowledging that the project has been delayed for longer than
expected. As a result, we are reallocating near-term investments to
other capacity and conversion initiatives as we continue working
to advance the project in France. Several large projects to convert
existing factories to use electric melting technologies are included in
the 2025 investment plans.
Overall, we expect capital expenditures of around 450 MEUR for 2025,
excluding acquisitions.
Outlook 2025
Investments around
excl. acquisitions
450 MEUR
EBIT margin around
16%
Revenue growth of low single-digit percent
in local currencies
MANAGEMENT’S REVIEW | Strategy and business
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ROCKWOOL Group Annual Report 2024
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ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
MANAGEMENT’S REVIEW | Strategy and business
17
ROCKWOOL Group Annual Report 2024
Insulation segment
Financial results
Insulation segment revenue for 2024 reached 3,032 MEUR, an increase
of eight percent compared to 2023 in local currencies and nine percent
in reported figures. The growth was primarily volume driven and made
possible by our focus on customer service and overall stable prices. The
two acquisitions in Q4 2024 accounted for 0.5 percent of the growth.
Based on our commitment to support reconstruction activities in
Ukraine, a donation of 13 MEUR to the Foundation for Ukrainian
Reconstruction was recognised in the Insulation segment in 2024, 6
MEUR in Q1 2024 and 7 MEUR in Q2 2024. For 2023, a donation of 27
MEUR to the Foundation for Ukrainian Reconstruction was recognised
in the Insulation segment.
Insulation segment EBIT reached 565 MEUR in 2024 with an EBIT
margin of 16.6 percent, an increase of three percentage points
compared to 2023. Volume growth as well as stable sales prices, lower
energy prices and focus on productivity improved profitability.
Key figures Insulation segment
MEUR Q4 2024 Q4 2023 2024 2023
External revenue 736 694 3,032 2,792
EBIT 128 124 565 431
EBIT margin 15.0% 15.2% 16.6% 13.6%
79% of
revenue
Stone wool production line in Fogang, China
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ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
18
Insulation segment – Business update
Revenue growth and solid
profitability driven by strong
performance in North America,
market share recovery within the
non-residential segment in key
European markets, and unexpected
growth in Russia. Residential
construction slowed across Europe,
dampening sales performance.
Revenue in the Insulation segment increased across all geographies,
driven in part by volume growth throughout 2024. The volume
growth and country mix, combined with overall stable prices from
market-specific pricing strategies, lower energy costs, productivity
improvements and agile capacity management, resulted in satisfying
profitability for the Group.
The European construction market was subdued, especially in the
residential new build sector. Even so, revenue in Europe increased
slightly due mainly to increased demand for non-combustible
insulation products, especially related to photovoltaic (solar)
installations on flat roofs. In Russia, unexpected high growth was
reported for the first three quarters of 2024.
Revenue in North America increased significantly, driven by high
demand across all categories, as customers looked to satisfy pent-up
demand and improve product availability.
Growth in Asia was mainly driven by South East Asia and India
benefitting from good market conditions and high domestic demand
for stone wool in the non-residential sectors. Revenue decreased
in China because of soft market conditions and competition from a
growing number of stone wool producers.
The technical and industrial insulation business performed well during
2024, with significant revenue growth. The marine segment in Europe
outperformed the market, partly due to the exit of one of the main
competitors. In the United States, the Board of Directors approved a
new production line for the Mississippi factory to produce technical
insulation products to help meet the growing demand in the Gulf of
Mexico region.
In 2024, the sandwich panel and OEM business continued good revenue
growth reflecting adaptability and broad market reach. The partnership-
based approach, customised solutions, and a comprehensive support
network have strengthened our market position.
Overall, the Insulation segment performed well, achieving solid
profitability despite the slow-down in the European construction market.
Decreasing interest rates and legislative drive to improve the energy
efficiency of existing buildings are expected to increase the demand for
building construction activity in the short- and medium-term.
Insulation solutions
ROCKWOOL offers fire-safe, thermally-
efficient, highly durable, and recyclable
stone wool insulation.
MANAGEMENT’S REVIEW | Strategy and business
19
ROCKWOOL Group Annual Report 2024
Systems segment
Financial results
Systems segment revenue for 2024 amounted to 823 MEUR, which
is a decrease of one percent measured in both local currencies and
reported figures. Adjusting for the divestment of the distribution
business Charles Wille in September 2023, organic growth was one
percent. Revenue grew in Rockpanel and Lapinus while revenue in
Rockfon and Grodan were slightly lower than 2023.
Systems segment generated an EBIT of 112 MEUR in 2024 with an EBIT
margin of 13.6 percent. In 2024, EBIT was positively impacted by 8
MEUR gain from sale of a warehouse while EBIT in 2023 was negatively
impacted by restructuring costs of 16 MEUR related to operational
restructuring in Rockfon. Adjusted for these one-off items, EBIT and EBIT
margin in Systems segment was stable compared to 2023.
Key figures
MEUR Q4 2024 Q4 2023 2024 2023
External revenue 234 240 823 828
EBIT 35 11 112 87
EBIT margin 14.7% 4.7% 13.6% 10.5%
21% of
revenue
Rockpanel production line in Marshall, United States
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ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
20
Systems Segment - Business Update
The four business units make
a range of stone wool-based
products, including acoustic
ceilings and walls, growing media
solutions, cladding boards,
engineered fibres as well as noise
and vibration control, rainwater
management, and prefab
building systems.
Rockfon makes acoustic systems for ceilings and walls and is the
largest of the four business units. The indoor acoustic systems combine
stone wool acoustic tiles with suspension and speciality ceiling and wall
systems that create beautiful, comfortable spaces. In 2024, Rockfon
revenue decreased slightly compared to 2023. In Europe, weak
economic conditions and high interest rates contributed to slowing
construction and renovation activity. In the United States, high interest
rates and low office occupancy levels were also factors impacting
renovation decisions.
Grodan is the second largest unit in the Systems segment. Grodan
makes soilless growing media solutions (stone wool substrates,
sensors, software and services) designed for growing food produce
and medicinal cannabis more efficiently in controlled environments.
In 2024, the business faced challenges, including high interest rates
and broader economic uncertainty as well as delayed expansions
in both Europe and North America among produce and medicinal
cannabis customers.
Rockpanel makes boards for façade cladding and roof detailing
primarily in ventilated façade constructions. The cladding and other
boards are robust, flexible and visually appealing, and fit perfectly
with modern architectural trends, while also providing cost efficiency
and ease of installation. In 2024, Rockpanel achieved good growth
in its core markets as well as others where it has a small but growing
presence. A new production line was opened in the Netherlands to
add capacity and enable the business to continue developing new
products for customers.
Lapinus, the smallest unit in the segment, manufactures a range
of products that help reduce car brake emissions, minimise railway
vibration, enable energy-efficient prefab construction and rainwater
management for urban communities. In 2024, Lapinus performed
satisfactorily overall. Stone wool fibres for automotive brake pad
manufacturers, grew slightly, while the industrial OEM business grew
more substantially. The residential prefab building business was
challenged by the slowdown in residential construction. The rainwater
management business grew significantly compared to 2023, although
from a small base.
Systems segment
Systems segment comprises the four
business units Rockfon, Grodan, Rockpanel
and Lapinus.
MANAGEMENT’S REVIEW | Strategy and business
21
ROCKWOOL Group Annual Report 2024
Financial performance
In a complex macro-economic
environment, ROCKWOOL
continued its strong performance
with a revenue increase of six
percent in local currencies in 2024.
Stable sales prices combined with
productivity improvements and
reduced energy costs resulted in
solid Group profitability, with an
EBIT margin at 17.5 percent.
The good performance reflects
the Group’s resilience and ability to
adapt to the market conditions
at hand.
Global revenue development
Despite positive signs of recovery, the macro-economic environment
remained complex in 2024, impacted by persistent consumer price
inflation, geopolitical tensions, and continued labour shortages. In this
overall challenging environment, ROCKWOOL continued its strong
performance, showing higher margins, resilience, and the ability to
adapt to changing market conditions.
The European construction markets were subdued, especially in the
residential new build sector, which negatively impacted some of our
key markets. Even so, revenue in Europe increased slightly mainly
due to increased demand for non-combustible insulation products,
especially in connection with photovoltaic (solar) installations on flat
roofs. North America continued the strong performance with significant
revenue increase driven by high demand in all categories. East and
South Asia benefitted from good market conditions and growing
demand for stone wool in the non-residential sectors.
Revenue for 2024 reached 3,855 MEUR, an increase of six percent
in local currencies and seven percent in reported figures, which is at
level with the latest announced expectation. Compared to the outlook
announced in the 2023 Annual Report, markets in North America,
Russia and the United Kingdom as well as our business for technical
insulation performed better. Sales prices remained relatively stable,
resulting in higher revenue than initially expected. The two acquisitions
made in Q4 2024 did not have a significant impact on the revenue
growth (0.4 percent for the full year).
Regional revenue development
Revenue in Western Europe reached 2,170 MEUR, an increase of two
percent in both local currencies and reported figures. Germany, the
United Kingdom, Spain and Sweden performed well, while revenue in
other markets like France, the Netherlands, and Denmark declined.
Revenue in Eastern Europe reached 753 MEUR, up 11 percent in both
local currencies and reported figures. Romania showed double-digit
growth, while Poland and Hungary decreased in the second half of the
year. For 2024, the business in Russia showed unexpected double-digit
revenue growth, although reported a decline in the last quarter.
Revenue in North America reached 737 MEUR, an increase of 18
percent in local currencies and 17 percent in reported figures. Revenue
in both the United States and Canada showed double-digit growth and
especially the building insulation business and the technical insulation
business in the United States showed strong growth.
In the rest of the world, revenue reached 195 MEUR, an increase of
seven percent in local currencies and five percent in reported figures.
Revenue in India, Malaysia, and Japan showed double-digit growth,
while revenue in most other markets decreased. Market conditions
in China were still tough. Revenue there decreased in the first three
quarters but with some improvement in Q4.
Group profitability
Stable sales prices from market-specific pricing strategies combined
with lower energy costs, productivity improvements and agile capacity
management resulted in solid Group profitability.
22
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
Most of our businesses showed strong performance in 2024 despite
challenging conditions. Especially the building insulation and technical
insulation business in North America performed well. Short-term, we
do not expect that the growing recognition and market acceptance
of our non-combustible insulation will be affected by the change in
administration in the United States.
Our four passively owned factories in Russia reported solid results with
signs of slowdown in the last quarter. This is partly a consequence
of high local inflation coupled with the unusually stable rouble/euro
exchange rate. The unexpected higher earnings from the business in
Russia increased the EBITDA margin for the Group by one percentage
point compared to 2023.
In fourth quarter, we realised a gain from the sale of an unused Rockfon
warehouse in Baltimore, the United States, of 8 MEUR.
EBITDA increased 21 percent to 940 MEUR with an EBITDA margin of
24.4 percent, up 2.9 percentage points compared to 2023.
In 2024, depreciation amounted to 263 MEUR, an increase of 2 MEUR
compared to 2023. Adjusted for impairment of tangible assets mainly
in the Insulation segment in 2024 and intangible and tangible assets in
2023, the increase was 8 MEUR. The increased depreciation was mainly
related to investments in new capacity and digitalisation.
EBIT for the year amounted to 677 MEUR, an increase of 31 percent,
with an EBIT margin of 17.5 percent. The two acquisitions completed
in Q4 2024 did not have a significant impact on the result. The
initial outlook announced in February 2024 on EBIT margin included
assumptions regarding increased input prices whereas actual input
prices decreased during 2024.
The full-year EBIT margin ended at level with the outlook announced
later in 2024.
Net financial income amounted to 18 MEUR, compared to a net
financial income of 2 MEUR in 2023. The development is driven by
lower foreign exchange losses.
Tax on profit for the year amounted to 146 MEUR compared to 133
MEUR in 2023. The effective tax rate ended at 21 percent, down 4.5
percentage points. The decrease in effective tax rate mainly relates
to increased recognition of tax assets and decreased payment of
withholding taxes.
Group profit after tax totalled 550 MEUR, up 161 MEUR, which we
consider a satisfactory result.
Statement of financial position and equity
Net working capital ended at 364 MEUR, an increase of 6 MEUR
compared to 2023. The increase mainly relates to higher inventories
from acquisitions partly offset by higher trade payables. Net working
capital as a percentage of revenue ended at 9.4 percent compared to
9.9 percent in 2023.
Total assets at the end of 2024 amounted to 3,888 MEUR, an increase
of 334 MEUR compared to 2023 mainly from increased intangible
assets, tangible assets and cash.
Equity of the Group totalled 3,086 MEUR as of 31 December 2024
compared to 2,804 MEUR in 2023, corresponding to an equity ratio of
79 percent. Equity was mainly affected by the profit for the year and
the share buy-back programme.
The proposed dividend for 2024 is 63 DKK per share, an increase of 20
DKK per share from 43 DKK for 2023.
Invested capital
Return on invested capital increased in 2024, reaching 25 percent
compared to 20 percent in 2023. The increase was due to increased
earnings. Invested capital amounted to 2,827 MEUR, up 265 MEUR
compared to 2023. The increase mainly came from higher tangible
assets, as we continue to invest in future growth, and acquisitions.
Revenue development
Growth MEUR
Revenue 2023 3,620
Organic development 6.3% 227
Acquisitions, Insulation Segment 0.4% 15
Divestment, Systems Segment -0.3% -12
Currency translation adjustment 0.1% 5
Revenue 2024 6.5% 3,855
EBIT development
Development MEUR
EBIT
Margin
EBIT 2023 518 14.3%
Earnings from operation 29.6% 153 3.0pp
Acquisitions/divestment 0.5% 3 0.1pp
Currency translation adjustment 0.5% 3 0.1pp
EBIT 2024 30.6% 677 17.5%
MANAGEMENT’S REVIEW | Strategy and business
23
ROCKWOOL Group Annual Report 2024
Cash flow and investments
The Group’s financial situation strengthened during the year with a net
interest-bearing positive cash position of 281 MEUR and unused credit
facilities of 600 MEUR at the end of 2024. At the time of reporting, we
have not obtained final approval for the next payments of dividend in
2025 for the business in Russia. Consequently, we have classified the
entire cash holding in Russia accumulated over the past many years of
166 MEUR as restricted.
Cash flow from operating activities ended at 817 MEUR, an increase of
110 MEUR compared to 2023. The positive impact was mainly derived
from increased cash earnings.
Capital expenditure reached 387 MEUR, an increase of 61 MEUR
compared to 2023, slightly higher than our latest expectation due to
timing of some larger investments. The largest individual investments
in 2024 relate to purchase of new land in Birmingham, England,
conversion to an electric melter in Switzerland, additional production
capacity in the Netherlands as well as factory-related digital
investments.
Free cash flow amounted to 364 MEUR, a decrease of 31 MEUR
compared to 2023, primarily due to higher capital expenditure and
acquisitions.
Cash flow from financing activities ended at negative 309 MEUR,
mainly from share buy-back payments of 149 MEUR out of the 160
MEUR in the scheme, and dividend payments of 125 MEUR.
The good performance in revenue and earnings reflects the ability to adapt to different economic environments.
80
Q1
120
160
200
40
1,100
800
900
1,000
Q1 Q3 Q4Q2
EBIT & EBIT margin
(MEUR)
700
600
500
400
Q3 Q4
2023 2024
Quarterly revenue & revenue growth (reported)
(MEUR)
Q2
2023 2024
6%
16.5%
18.7%
18.1%
16.7%
10%
6%
4%
-6%
-10%
-11%
-2%
12.0%
14.5%
16.2%
14.4%
60
20
40
100
0
120
140
80
Cash flow from investments excl. acquisitions
(MEUR)
2023 2024
18
26
22
14
Return on invested capital (ROIC)
(%)
2023 2024
Q4Q3Q2
Q4
Q1
Q2
Q3
Q1
21.2
23.1
24.7
25.1
84
91
73
15.8
15.3
18.4
20.1
77
54
90
96
131
Financial performance
(continued)
24
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
Quarterly financial figures
Global revenue development
Revenue in Q4 2024 reached 970 MEUR, an increase of four percent in
both local currencies and reported figures compared to Q4 2023.
Revenue growth was primarily driven by North America and the
United Kingdom as well as the acquisitions, partly offset by decline in
Eastern Europe. Acquisitions accounted for two percent of the growth
in Q4 2024.
Regional revenue development
Revenue in Western Europe ended at 554 MEUR in Q4 2024, an
increase of two percent in local currencies and three percent in
reported currencies compared to Q4 2023. The result was partly driven
by the acquisition of Wetherby Building Systems Ltd. in the United
Kingdom. Especially the United Kingdom and Spain performed well,
while Denmark and Italy showed lower revenue compared to Q4 2023.
Quarterly revenue in Eastern Europe amounted to 181 MEUR, a
decrease of three percent in local currencies and five percent in
reported figures compared to Q4 2023. Revenue decreased in most
main markets and especially in Poland, Hungary and Russia. Romania
showed good revenue growth.
Revenue in North America ended at 182 MEUR in Q4 2024, an increase
of 15 percent in both local currencies and reported figures compared
to Q4 2023. Both main markets continued the strong performance.
Quarterly revenue in the rest of the world reached 53 MEUR, an increase
of 12 percent in both local currencies and reported figures compared to
Q4 2023. The acquisition in Vietnam accounted for four percent of the
growth. China, Thailand and Japan showed double-digit growth.
Group profitability
In Q4 2024, continued lower input costs combined with stable sales
prices and improved operational productivity, kept profitability at a
good level.
EBITDA in Q4 2024 reached 230 MEUR, an increase of 28 MEUR or 14
percent compared to Q4 2023. The EBITDA margin was 23.7 percent
compared to 21.7 percent in Q4 2023. EBITDA was positively impacted
by the 8 MEUR gain from the sale of an unused warehouse in Baltimore,
the United States.
Depreciation in Q4 2024 amounted to 67 MEUR, at level with Q4 2023.
Quarterly EBIT was 163 MEUR, compared to 135 MEUR in Q4 2023.
EBIT margin ended at 16.7 percent, up 2.3 percentage points from Q4
2023. The acquisitions in the United Kingdom and Vietnam had limited
impact on the EBIT margin.
Business segments
Revenue in Q4 2024 in the Insulation segment amounted to 736
MEUR, an increase of six percent in both local currencies and reported
figures compared to Q4 2023.
The acquisitions accounted for two
percent of the growth.
The insulation business in North America
continued the solid performance.
EBIT in the Insulation segment reached 128 MEUR resulting in an EBIT
margin of 15.0 percent stable compared to Q4 2023.
In Systems segment, quarterly revenue reached 234 MEUR, a
decrease of three percent in local currencies. Measured in reported
figures, revenue decreased two percent. Rockfon North America and
Rockpanel showed growth, while revenue in Grodan and Rockfon
Europe-Asia declined compared to Q4 2023.
EBIT in Systems segment reached 35 MEUR in Q4 2024, an increase
of 24 MEUR compared to Q4 2023. The 8 MEUR gain from the sale
of a warehouse in Baltimore, the United States, impacted EBIT in the
Systems segment in Q4 2024, while EBIT in Q4 2023 was negatively
impacted by restructuring costs of 16 MEUR related to operational
restructuring in Rockfon. Adjusted for these one-off items, EBIT and
EBIT margin in the Systems segment was stable compared to Q4 2023.
MANAGEMENT’S REVIEW | Strategy and business
25
ROCKWOOL Group Annual Report 2024
2024 2023
MEUR
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Statement of profit and loss
Revenue 918 1,010 957 970 866 917 903 934
Operating income 920 1,012 958 981 872 924 904 935
Raw material costs and production material costs 312 334 313 323 326 327 316 333
Delivery costs and indirect costs 108 121 123 123 106 114 102 115
Other expenses 75 85 66 77 77 85 67 71
Employee benefits expenses 209 219 215 228 199 204 200 214
Operating costs 704 759 717 751 708 730 685 733
EBITDA 216 253 241 230 164 194 219 202
Amortisation, depreciation and impairment 64 64 68 67 60 61 73 67
EBIT 152 189 173 163 104 133 146 135
Share of net profit of associates - - - 1 - - - 2
Financial items 3 -5 10 10 2 4 2 -6
Profit before tax 155 184 183 174 106 137 148 131
Tax expense 39 42 28 37 28 35 39 31
Profit for the period 116 142 155 137 78 102 109 100
EBITDA margin 23.5% 25.1% 25.2% 23.7% 18.9% 21.2% 24.3% 21.7%
EBIT margin 16.5% 18.7% 18.1% 16.7% 12.0% 14.5% 16.2% 14.4%
Statement of comprehensive income
Profit for the period 116 142 155 137 78 102 109 100
Exchange differences on translation of foreign entities -8 34 -50 33 -43 -8 -21 18
Change in pension obligations 1 1 -1 -8 - - - -10
Hedging instruments, value adjustments 2 - - -1 4 -1 - -6
Tax on other comprehensive income - - - 2 - - - 4
Total comprehensive income 111 177 104 163 39 93 88 106
2024 2023
MEUR
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Statement of cash flows
EBIT 152 189 173 163 104 133 146 135
Adjustments for amortisation, depreciation and
impairment
64 64 68 67 60 61 73 67
Adjustments of non-cash operating items -2 6 -1 -18 -5 1 -5 7
Changes in net working capital -79 - 50 22 -72 8 77 58
Cash flow from operations before financial items and tax 135 259 290 234 87 203 291 267
Cash flow from operating activities 99 237 270 211 65 173 263 206
Cash flow from investing activities -84 -91 -73 -205 -77 -54 -85 -96
Free cash flow 15 146 197 6 -12 119 178 110
Cash flow from financing activities -47 -167 -46 -49 139 -234 -133 -10
Net change in cash and cash equivalents -32 -21 151 -43 127 -115 45 100
Business segments
Insulation segment:
External revenue 724 809 763 736 664 723 711 694
Internal revenue 82 86 87 114 95 87 87 120
EBIT 124 159 154 128 79 110 118 124
EBIT margin 15.4% 17.8% 18.1% 15.0% 10.4% 13.7% 14.9% 15.2%
Systems segment:
External revenue 194 201 194 234 202 194 192 240
EBIT 28 30 19 35 25 23 28 11
EBIT margin 14.2% 14.9% 10.1% 14.7% 12.4% 11.6% 14.6% 4.7%
Geographical segments
Western Europe 525 555 536 554 528 541 519 537
Eastern Europe and Russia 176 198 198 181 138 161 189 191
North America 171 209 175 182 159 167 146 158
Asia and others 46 48 48 53 41 48 49 48
Total revenue 918 1,010 957 970 866 917 903 934
Quarterly financial figures
(continued)
26
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Strategy and business
Financial risk management
Managing risk is a natural part of
doing business in the Group.
Systems and processes
The Board of Directors is responsible for ensuring that the Group’s risk
exposure, including sustainability-related risks, is consistent with its
targeted risk profile.
The Board of Directors also evaluates that appropriate awareness and
management processes are in place. Managing the risk process is
part of the CFO’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 those risks are discussed,
described, scored for severity and likelihood, and quantified in terms
such as predicted financial impact.
The Group function or subsidiary proposes appropriate mitigating
actions for identified risks, which are studiously evaluated to ensure
effective risk management at Group level. The Group’s Enterprise
Risk Management Committee consists 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 of Directors.
The Audit Committee selects deep dives into the Group’s top risks,
which the “risk owner” presents for the Risk Committee, Group
Management and finally to the Audit Committee and Board of
Directors. With these systems and processes, the Group identifies and
mitigates the risk. The objective is to ensure that any residual risks are
at an acceptable level.
Key risks
Climate risks including energy supply, ownership of a business in Russia,
and cyber threats are currently the risks that would have the highest
potential to impact ROCKWOOL Group if the risks were to materialise.
Climate risks and energy supply
Description
As part of an energy-intensive industry, ROCKWOOL faces specific
climate-related risks on both the regulatory and technological fronts.
Key innovations in our melting and product technology and multiple
other energy-saving initiatives will contribute to achieving the
decarbonisation goals that are reflected in our sustainability double
materiality assessment and in the science-based targets we announced
in 2020. These targets are verified and approved by the Science Based
Targets initiative (SBTi).
Climate-related regulations can represent both an opportunity and risk:
an opportunity to positively influence the demand for carbon emission
abating solutions such as insulation; and a risk, as regulation can
increase industry’s financial burden relating to carbon emissions. See
more in the sustainability statement on p. 63.
ROCKWOOL is taking steps to decarbonise our production process by
introducing key innovations in our melting technology. This involves
switching from coke to gas in some factories, from coke or gas to
electricity in other factories, and primarily building new factories based
on electricity. Such innovation can have an impact on the expected life-
time of existing assets. While the supply of coke is almost abundant,
there is a risk that the usage of coke as a primary energy source at
our factories, could be limited mainly due to EU regulation, national
restrictions or taxes on CO
2
emissions.
Looking ahead, limitation on grid connections, availability and the cost
of reliable supply of green electricity in certain areas in Europe could
become constraints or a delaying factor in achieving the plans for
conversion primarily from coke to electricity.
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 and similar schemes’ financial
impact on our business. For the period 2020-2030, the mineral wool
sector has been granted EU carbon leakage, which significantly
increases the number of free allowances allocated to each factory.
In addition, our ambitious decarbonisation strategy will reduce our
absolute CO
2
emissions significantly, as we are increasingly using low
or lower carbon-intensive energy sources. The plan for converting
existing assets into electric melting technologies also considers the
impact on the expected lifetime for the relevant assets. In the period
MANAGEMENT’S REVIEW | Governance and shareholder information
27
ROCKWOOL Group Annual Report 2024
2025-2030, the financial impact of the risk at Group level is assessed to
be between 0-100 MEUR.
ROCKWOOL’s energy strategy has been reviewed and includes the
use of power purchase agreements to ensure stable supply and to
reduce future fluctuations in energy prices. In 2024, a power purchase
agreement for part of our business in the Netherlands was finalised.
Ownership of a business in Russia
Description
ROCKWOOL’s passive ownership of four Russian factories and the
consequences of Russia’s war against Ukraine increase certain risks for
ROCKWOOL. The main risk factors are loss of brand value, breach of
applicable sanctions, and loss of assets.
ROCKWOOL has experienced media and public criticism primarily in
Denmark and Ukraine due to the ownership of a business in Russia.
Worsening of the war, breach of sanctions or actions by the Russian
authorities could lead to a decrease in brand value and reputation.
The significant EU, U.S., and UK economic sanctions have increased
the complexity of maintaining ownership of the business in Russia, as
have Russian government sanctions. Sanctions compliance remains a
fundamental priority for ROCKWOOL.
Additionally, there remains a risk that the Russian government will
nationalise western companies or otherwise transfer ownership to
Russian actors.
Risk trend - stable
Mitigation
Policies, procedures and internal controls have been established to
secure compliance with all sanctions. The Russian business operates on
a stand-alone basis with no operational or management involvement
from ROCKWOOL Group. All investments and cross-border sales into
Russia have been stopped, including licensing of intellectual property.
ROCKWOOL seeks to mitigate the risk of a decrease in brand value
and reputation by engaging openly and extensively in the Danish
public debate, primarily via the media, to explain the reasoning behind
our decisions and to provide timely responses as questions arise.
A continued cash flow in the form of dividend from the Russian
business is to the extent possible secured in close cooperation with
existing financial institutions.
Cyber threats
Description
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 the digitalisation of business processes, a cyberattack or
non-availability of IT systems increases the potential financial 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 - stable
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.
The Group’s IT strategy therefore comprises a continued effort to
strengthen the protection against cyber threats. 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
of this IT risk 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 findings 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 level.
Financial risk management
(continued)
28
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
Responsible tax
ROCKWOOL maintains its Group
Tax Policy, which is available at our
web-site under Business Ethics.
The Group Tax Policy is an
integrated guide in our daily
operation and discussions with
our operating business.
We acknowledge that tax practice is an important part of society and
equally an important part of responsible corporate citizenship. The
Group Tax Policy is the foundation for our tax governance and controls.
The aim of our tax policy is to reflect and support our business by
ensuring a sustainable tax rate, mitigating tax risks and complying with
rules and regulations in the jurisdictions in which we operate.
ROCKWOOL is committed to paying the right amount of tax, at the
right time, in the right place in accordance with the tax laws of the
countries where we operate.
We commit to a constructive dialog with authorities in the countries we
operate in when approached.
Our legal structure supports the requirements for running our business.
We do not engage in harmful or artificial tax structures. During the
year we have had operations in one jurisdiction on the EU list of
uncooperative tax jurisdictions; Russia.
While conducting and building our business we do engage in
obtaining incentives. Incentives may come in the form of direct refund
of invested capital, reduction in taxes or duties payable as well as
direct reduction in payable corporate income tax.
Caparroso, Spain
MANAGEMENT’S REVIEW | Governance and shareholder information
29
ROCKWOOL Group Annual Report 2024
29
30
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
Registered Directors
Chairmanship
Audit
Committee
Board of Directors
Shareholders and general meeting
Remuneration
and Nomination
Committee
Our governance model
MANAGEMENT’S REVIEW | Governance and shareholder information
31
ROCKWOOL Group Annual Report 2024
Corporate governance
(continued)
32
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
MANAGEMENT’S REVIEW | Governance and shareholder information
35
ROCKWOOL Group Annual Report 2024
36
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
38
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
MANAGEMENT’S REVIEW | Governance and shareholder information
39
ROCKWOOL Group Annual Report 2024
ROCKWOOL shares
ROCKWOOL 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 2024, both the class A share price and the class B share price
increased by 29 percent. That compares with a six percent increase in the
benchmark index STOXX
®
Europe 600 Construction & Materials and a
two percent decrease in the Nasdaq OMX C25 index during 2024.
The official share price on 31 December 2024 was 2,556 DKK (B share)
and 2,538 DKK (A share). The combined market capitalisation at the
end of the year was 53,856 MDKK.
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.
Share capital amounts to a nominal value of 216,207,090 DKK, of
which nominally 98,666,030 DKK (2023: 107,761,590 DKK) is class
A share capital, and nominally 117,541,060 DKK (2023: 108,445,500
DKK) is class B share capital.
The changes in nominal value between class A and class B shares arise
from the conversion scheme which gives shareholders a voluntary right
to convert class A shares to class B shares, under certain terms and
conditions, four times a year.
Further details are available at www.rockwool.com/group/about-us/
investors/conversion-shares/.
The company had 35,615 (2023: 36,212) registered shareholders on
31 December 2024. By the end of 2024, 31 percent (2023: 27 percent)
of the shares were owned by registered shareholders located outside
Denmark; In terms of voting capital, 13 percent (2023: eight percent)
were located outside Denmark.
For a list of shareholders holding more than five percent of the share
capital or the votes, please refer to p. 186.
Shareholder information
Ownership
per shareholder category
Votes
per shareholder category
Share price development 2024
(DKK)
The ROCKWOOL Foundation Own shares Private investors with less than 5%
Institutional investors with less than 5% Other shareholders with more than 5%
6%
23%
2%
36%
31%
0%
49%
8%
12%
2,400
2,800
3,200
1,600
2,000
01.01
2024
01.02
2024
01.03
2024
01.04
2024
01.05
2024
01.06
2024
01.07
2024
01.08
2024
01.09
2024
01.10
2024
01.11
2024
01.12
2024
01.01
2025
OMX C25
ROCKWOOL B STOXX
®
Euro 600 Construction & Materials
33%
40
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
Capital structure and dividend
Management regularly assesses whether the ROCKWOOL capital
structure is in the interests of the Group and its stakeholders. The overall
objective is to ensure continued development and strengthening of the
Group’s capital structure that supports long-term profitable growth.
It is the intention of ROCKWOOL that the net debt should be maximum
one time the EBITDA, with due regard to the Group’s long-term
financing requirements.
The dividend policy is to pay out a stable dividend that is at least one-
third of net profit 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 2 April 2025, the Board of Directors
will propose a dividend of 63 DKK per share for the financial year 2024
(2023: 43 DKK). The dividend payment occurs three banking days after
the Annual General Meeting.
On 8 February 2024, the company initiated a share buy-back
programme up to an amount of 160 MEUR, to be completed within the
following 12 months. The shares are being purchased in accordance
with the Safe Harbour Regulation and cover only B shares. In 2024, a
total of 426,900 shares have been bought back, corresponding to a
transaction value of around 149 MEUR. At the Annual General Meeting
in 2025, the Board of Directors will propose that the shares purchased
under this programme be cancelled.
On 7 February 2025, the company will initiate a share buy-back
programme up to an amount of 150 MEUR, to be completed within
the following 12 months, within the authority granted by the Annual
General Meeting to purchase up to 10 percent of the shares and
assuming that this mandate will be extended at the Annual General
Meeting on 2 April 2025. The shares will be purchased in accordance
with the Safe Harbour Regulation and will cover only B shares. At the
Annual General Meeting in 2026, the Board of Directors will propose
that the shares purchased under this programme be cancelled.
Investor relations
As a listed company, ROCKWOOL A/S has defined a policy for its
activities relating to ROCKWOOL 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 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 A/S itself and by persons considered insiders.
Strive to ensure that ROCKWOOL 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 A/S’ shares are generally categorised within Construction
and Materials and are currently covered by 21 equity analysts, 14 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 contact information are available to
investors at www.rockwool.com/group/about-us/investors/.
Stock market information
2024 2024 2023 2022 2021 2020
(EUR) DKK DKK DKK DKK DKK
Earnings per share 26 192 134 93 104 86
Dividend per share 8.4 63.0 43.0 35.0 35.0 32.0
Cash flow per share 38 285 244 136 147 150
Book value per share 143 1,064 967 887 823 707
Share capital (million) 29 216 216 216 216 220
Price per A share 340 2,538 1,965 1,636 2,379 2,075
Price per B share 343 2,556 1,977 1,637 2,859 2,296
Market cap (million) 7,221 53,856 42,519 35, 311 56,295 47,062
Number of own shares 480,783 480,783 50,288 47, 8 57 56,228 403,912
Number of A shares of 10 DKK (10 votes) 9,866,603 9,866,603 10,776,159 10,906,522 11,155,558 11,231,627
Number of B shares of 10 DKK (1 vote) 11,754,106 11,754,106 10,844,550 10,714,187 10,465,151 10,743,296
MANAGEMENT’S REVIEW | Governance and shareholder information
41
ROCKWOOL Group Annual Report 2024
Financial calendar 2025
6 February
Annual Report
for 2024
19 May
Report on the first
quarter of 2025
26 November
Report on the first
nine months of 2025
2 April
Annual General
Meeting
20 August
Report on the first
half-year of 2025
Fogang, China
42
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Governance and shareholder information
General information
44 Basis for preparation
46 Sustainability governance
51 Sustainability is central to our business strategy
55 Impact, risks and opportunity management
59 Disclosure requirements
Environmental information
63 E1 Climate change
75 E2 Pollution
79 E3 Water and marine resources
83 E5 Resource use and circular economy
90 EU Taxonomy
Social information
98 S1 Own workforce
109 S3 Affected communities
112 S4 Consumers and end-users
Governance information
117 G1 Business conduct
Appendix
122 References to other EU legislations
SUSTAINABILITY STATEMENT | General information
44
ROCKWOOL Group Annual Report 2024
Ranson, United States
SUSTAINABILITY STATEMENT | General information
45
ROCKWOOL Group Annual Report 2024
CEO Jes Munk Hansen in ROCKWOOL Sound Lab
Hedehusene, Denmark
SUSTAINABILITY STATEMENT | General information
46
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
47
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
Sustainability governance
(continued)
48
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
49
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
50
ROCKWOOL Group Annual Report 2024
Product showroom in Caparroso, Spain
SUSTAINABILITY STATEMENT | General information
51
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
52
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
53
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
54
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
55
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
Impact, risk and opportunity management
(continued)
56
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
57
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
Material impacts, risks, and opportunities and their interaction with strategy and business model (continued)
58
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
59
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
[IRO-2] Disclosure requirements in ESRS covered by the undertaking's sustainability report (continued)
60
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
61
ROCKWOOL Group Annual Report 2024
Quality lab in Marshall, USA
SUSTAINABILITY STATEMENT | Environmental information
63 E1 Climate change adaptation, mitigation and energy
75 E2 Pollution: air emissions and substances of concern
79 E3 Water and marine resources
83 E5 Resource use and circular economy, incl. waste and packaging
90 EU Taxonomy
62
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
63
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
64
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
65
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
66
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
67
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
68
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
69
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
70
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
71
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
72
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
73
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
74
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
75
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
76
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
77
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
78
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
79
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
80
ROCKWOOL Group Annual Report 2024
Ranson, USA
SUSTAINABILITY STATEMENT | Environmental information
81
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
82
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
83
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
®
84
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
Fogang, China
85
ROCKWOOL Group Annual Report 2024
85
SUSTAINABILITY STATEMENT | Environmental information
86
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
87
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
88
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
89
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
90
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
Code (s) (2)
Turnover (3)
Proportion of Turnover
year H1 2024 (4)
Climate change
mitigations (5)
Climate change
adaptations (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigations (11)
Climate change
adaptations (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of Taxonomy-
aligned or -eligible
turnover, year 2023
restated (18)
Category enabling
activity (19)
Category transitional
activity (20)
91
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
Code (s) (2)
Absolute CAPEX (3)
Proportion of CAPEX (4)
Climate change
mitigations (5)
Climate change
adaptations (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigations (11)
Climate change
adaptations (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of Taxonomy-
aligned or -eligible
CAPEX, year 2023
restated (18)
Category enabling
activity (19)
Category transitional
activity (20)
92
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
Code (s) (2)
Absolute OPEX (3)
Proportion of OPEX (4)
Climate change
mitigations (5)
Climate change
adaptations (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change
mitigations (11)
Climate change
adaptations (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Proportion of Taxonomy-
aligned or -eligible
OPEX, year 2023
restated (18)
Category enabling
activity (19)
Category transitional
activity (20)
93
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
94
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
95
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Environmental information
Melaka, Malaysia
96
ROCKWOOL Group Annual Report 2024
96
SUSTAINABILITY STATEMENT | Social information
98
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
99
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
100
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
101
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
102
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
103
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
104
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
105
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
106
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
107
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
108
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
109
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
110
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
111
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
112
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
113
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
114
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Social information
115
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Governance information
117
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Governance information
118
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Governance information
119
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | Governance information
120
ROCKWOOL Group Annual Report 2024
SUSTAINABILITY STATEMENT | General information
122
ROCKWOOL Group Annual Report 2024
Financial
statements
Consolidated financial statements
125 Statement of profit and loss
125 Statement of comprehensive income
126 Statement of financial position
127 Statement of cash flows
128 Statement of changes in equity
129 Notes
166 Definition of key figures and ratios
Statements
168 Management’s statement
169 Independent auditor’s Reports
173 Independent auditor’s limited assurance
report on the sustainability statement
Parent company financial statements
177 Parent company financial statements
for ROCKWOOL A/S
FINANCIAL STATEMENTS | Consolidated financial statements
Statement of profit and loss
1 January – 31 December
MEUR Note 2024 2023
Revenue 2.1 3,855 3,620
Other operating income 16 15
Operating income 3,871 3,635
Raw material costs and production material costs 1,282 1,302
Delivery costs and indirect costs 475 437
Other expenses 303 300
Employee benefits expenses 2.2 871 817
Operating costs 2,931 2,856
EBITDA 940 779
Amortisation, depreciation and impairment 3.4, 3.5 263 261
EBIT 677 518
Share of net profit of associates 1 2
Finance income 5.1 40 38
Finance expenses 5.1 22 36
Profit before tax 696 522
Tax expense 6.1 146 133
Profit for the year 550 389
Profit for the year attributable to:
Non-controlling interests - -
Shareholders of ROCKWOOL A/S 550 389
EUR
Earnings per share: 5.7
Earnings per share of 10 DKK (1.3 EUR) 25.8 18.0
Diluted earnings per share of 10 DKK (1.3 EUR) 25.7 18.0
Statement of comprehensive income
1 January – 31 December
MEUR Note 2024 2023
Profit for the year 550 389
Items that will not be reclassified to profit or loss:
Actuarial gains and losses of pension obligations 3.6 -8 -10
Tax on other comprehensive income 3 3
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign entities 9 -54
Hedging instruments, value adjustments 1 -3
Tax on other comprehensive income - 1
Other comprehensive income 5 -63
Comprehensive income for the year 555 326
Comprehensive income for the year attributable to:
Non-controlling interests
Shareholders of ROCKWOOL A/S
125
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Statement of financial position
Assets – as at 31 December
MEUR Note 2024 2023
Goodwill 136 98
Software 12 10
Customer relationships 50 23
Other intangible assets 6 8
Intangible assets under construction 9 6
Intangible assets 3.1 213 145
Land and buildings 1,019 881
Plant and machinery 820 740
Other operating equipment 38 26
Tangible assets under construction 382 432
Property, plant and equipment 3.2 2,259 2,079
Right-of-use assets 3.3 77 72
Prepayments 13 -
Investments in associates 11 11
Deposits and receivables 12 8
Deferred tax assets 6.1 62 46
Financial assets 98 65
Non-current assets 2,647 2,361
Inventories 4.1 381 375
Trade receivables 4.2, 5.2 338 337
Other receivables 5.2 57 53
Prepayments 31 30
Income tax receivable 6.1 31 44
Cash and cash equivalents 5.2, 5.3 403 354
Current assets 1,241 1,193
Total assets 3,888 3,554
Equity and liabilities – as at 31 December
MEUR Note 2024 2023
Share capital 5.5 29 29
Foreign currency translation -162 -171
Proposed dividend 182 125
Retained earnings 3,038 2,824
Hedging -2 -3
Equity attributable to shareholders of ROCKWOOL A/S 3,085 2,804
Non-controlling interests 1 -
Total equity 3,086 2,804
Deferred tax liabilities 6.1 72 66
Employee benefit obligations 3.6 42 39
Lease liabilities 3.3 55 48
Provisions 3.7 20 22
Borrowings 5.2, 5.4 16 24
Non-current liabilities 205 199
Borrowings 5.2, 5.3, 5.4 23 14
Trade payables 5.2 256 241
Lease liabilities 3.3 28 29
Provisions 3.7 12 15
Income tax payable 6.1 79 41
Other payables 5.2 199 211
Current liabilities 597 551
Total liabilities 802 750
Total equity and liabilities 3,888 3,554
126
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
MEUR Note 2024 2023
EBIT 677 518
Adjustments for amortisation, depreciation and impairment 3.4 263 261
Adjustments of non-cash operating items 4.3 -15 -2
Changes in net working capital 4.3 -7 71
Cash flow from operations before financial items and tax 918 848
Interests etc. received 35 14
Interests etc. paid -20 -34
Taxes paid -116 -121
Cash flow from operating activities 817 707
Purchase of property, plant and equipment -376 -321
Proceeds from sale of property, plant and equipment 8 9
Purchase of intangible assets -11 -5
Acquisitions of subsidiaries, net of cash acquired 5.8 -74 -
Disposal of subsidiaries, net of cash disposed of - 5
Cash flow from investing activities -453 -312
Free cash flow 364 395
Dividend paid -125 -101
Share buy-back programme -149 -
Purchase of treasury shares -3 -3
Sale of treasury shares - -
Repayment of lease liabilities 3.3 -29 -29
Repayment of non-current receivables -3 -5
Proceeds from borrowings 13 1
Repayment of borrowings -13 -101
Cash flow from financing activities -309 -238
Net increase in cash and cash equivalents 55 157
Cash available at 1 January 353 202
Exchange rate adjustments on cash and cash equivalents -6 -6
Cash available at 31 December 5.3 402 353
Unutilised, committed credit facilities 600 600
127
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Shareholders of ROCKWOOL A/S
MEUR
Share
capital
Foreign
currency
translation
Proposed
dividend
Retained
earnings Hedging Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2024 29 -171 125 2,824 -3 2,804 - 2,804
Profit for the year - - 182 368 - 550 - 550
Actuarial gains and losses of pension obligations - - - -8 - -8 - -8
Hedging instruments, value adjustments - - - - 1 1 - 1
Exchange differences on translation of foreign entities - 9 - - - 9 - 9
Tax on other comprehensive income - - - 3 - 3 - 3
Comprehensive income for the year - 9 182 363 1 555 - 555
Share buy-back programme - - - -149 - -149 - -149
Purchase of treasury shares - - - -3 - -3 - -3
Share based payments - - - 3 - 3 - 3
Transactions non-controlling interests - - - -1 - -1 1 -
Dividends paid - - -125 1 - -124 - -124
Equity at 31 December 2024 29 -162 182 3,038 -2 3,085 1 3,086
Equity at 1 January 2023 29 -117 102 2,567 -1 2,580 - 2,580
Profit for the year - - 125 264 - 389 - 389
Actuarial gains and losses of pension obligations - - - -10 - -10 - -10
Hedging instruments, value adjustments - - - - -3 -3 - -3
Exchange differences on translation of foreign entities - -54 - - - -54 - -54
Tax on other comprehensive income - - - 3 1 4 - 4
Comprehensive income for the year - -54 125 257 -2 326 - 326
Purchase of treasury shares - - - -3 - -3 - -3
Share based payments - - - 2 - 2 - 2
Dividends paid - - -102 1 - -101 - -101
Equity at 31 December 2023 29 -171 125 2,824 -3 2,804 - 2,804
128
ROCKWOOL Group Annual Report 2024
Notes
Note 1 Basis of preparation
131 1.1 Critical accounting estimates and judgements
131 1.2 Material accounting policy information
132 1.3 New and amended standards and interpretations
132 1.4 Reporting under the ESEF Regulation
Note 2 Operating profit
134 2.1 Revenue and segmented accounts
135 2.2 Employee benefits expenses
136 2.3 Long-term incentive programmes
Note 3 Invested capital
139 3.1 Intangible assets
140 3.2 Property, plant and equipment
142 3.3 Leases
143 3.4 Amortisation, depreciation and impairment
143 3.5 Impairment tests
146 3.6 Employee benefit obligations
148 3.7 Provisions
Note 4 Working capital
150 4.1 Inventories
150 4.2 Trade receivables
151 4.3 Other cash flow notes
Note 5 Capital structure and financing
153 5.1 Finance income and Finance expenses
153 5.2 Financial risks and instruments
156 5.3 Cash
156 5.4 Loans
156 5.5 Share capital
157 5.6 Treasury shares
157 5.7 Earnings per share
158 5.8 Business combinations and asset acquisitions
Note 6 Other
162 6.1 Tax
164 6.2 Commitments and contingent liabilities
164 6.3 Related parties
164 6.4 Auditor’s fee
164 6.5 Events after the reporting date
165 6.6 Group companies
FINANCIAL STATEMENTS | Consolidated financial statements
Note 1
Basis of preparation
131 1.1 Critical accounting estimates and judgements
131 1.2 Material accounting policy information
132 1.3 New and amended standards and interpretations
132 1.4 Reporting under the ESEF Regulation
130
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
131
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
1.2 Material accounting policy information (continued)
132
ROCKWOOL Group Annual Report 2024
Revenue per business segment
(MEUR)
Insulation Systems
EBIT margin
17.5%
Average
number of FTEs
12,174
Reported revenue
increase
7%
1,000
2,000
3,000
4,000
0
20242023
FINANCIAL STATEMENTS | Consolidated financial statements
Note 2
Operating profit
134 2.1 Revenue and segmented accounts
135 2.2 Employee benefits expenses
136 2.3 Long-term incentive programmes
133
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
134
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
2.1 Revenue and segmented accounts (continued)
135
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
2.2 Employee benefits expenses (continued) 2.3 Long-term incentive programmes
136
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
2.3 Long-term incentive programmes (continued)
137
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Note 3
Invested capital
139 3.1 Intangible assets
140 3.2 Property, plant and equipment
142 3.3 Leases
143 3.4 Amortisation, depreciation and impairment
143 3.5 Impairment tests
146 3.6 Employee benefit obligations
148 3.7 Provisions
CAPEX excl. acquisitions
Up 61 MEUR
compared to 2023
387MEUR
ROU assets
77MEUR
ROIC
25.1%
138
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
139
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.1 Intangible assets (continued)
140
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.2 Property, plant and equipment (continued)
141
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
142
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.3 Leases (continued)
143
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.5 Impairment tests (continued)
144
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.5 Impairment tests (continued)
145
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
146
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.6 Employee benefit obligations (continued)
147
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
3.6 Employee benefit obligations (continued) 3.7 Provisions
148
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
150
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
4.2 Trade receivables (continued) 4.3 Other cash flow notes
151
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Equity ratio
At level with 2023
Up 49 MEUR from
2023
Up 7.8 EUR from 2023
79%
Cash
Earnings per share
402MEUR
25.8EUR
Note 5
Capital structure
and financing
153 5.1 Finance income and Finance expenses
153 5.2 Financial risks and instruments
156 5.3 Cash
156 5.4 Loans
156 5.5 Share capital
157 5.6 Treasury shares
157 5.7 Earnings per share
158 5.8 Business combinations and asset acquisitions
152
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
153
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
5.2 Financial risks and instruments (continued)
154
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
5.2 Financial risks and instruments (continued)
155
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
5.2 Financial risks and instruments (continued)
156
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
5.5 Share capital (continued)
157
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
158
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
5.8 Business combinations and asset acquisitions (continued)
159
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
5.8 Business combinations and asset acquisitions
(continued)
Packaging line in Caparroso, Spain
160
ROCKWOOL Group Annual Report 2024
160
FINANCIAL STATEMENTS | Consolidated financial statements
Effective tax
rate in 2024
21.0%
Number of associates
in the Group
4
Number of subsidiaries
in the Group
62
Note 6
Other
162 6.1 Tax
164 6.2 Commitments and contingent liabilities
164 6.3 Related parties
164 6.4 Auditor’s fee
164 6.5 Events after the reporting date
165 6.6 Group companies
161
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
162
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
6.1 Tax (continued)
163
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
164
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Consolidated financial statements
Notes
165
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Definitions
166
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Definitions
Definition of key figures and ratios
(continued)
167
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Management’s statement
Board of Directors
Registered Directors
168
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Independent auditor’s Reports
Report on the audit of the Financial Statements
169
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Independent auditor’s Reports
(continued)
170
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Independent auditor’s Reports
(continued)
171
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Independent auditor’s Reports
(continued)
CVR no 33 77 12 31
172
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
173
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Independent auditor’s limited assurance report on the Sustainability Statement
(continued)
174
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Statements
Independent auditor’s limited assurance report on the Sustainability Statement
(continued)
175
ROCKWOOL Group Annual Report 2024
MANAGEMENT’S REVIEW | Parent company
Statement on Management’s Review
The activities in the parent company ROCKWOOL 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.
Statement of profit and loss
Revenue in ROCKWOOL A/S consists of income from constructing and
maintaining the Group's manufacturing facilities and royalty for the use
of patents and trademarks.
In 2024, revenue from constructing and maintaining the Group's
manufacturing facilities was 94 MEUR (2023: 108 MEUR), a decrease
of 14 MEUR as a result of decreased investment activities during 2024
(2023: 15 MEUR).
ROCKWOOL 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 401 MEUR (2023: 358 MEUR).
Income from investments in subsidiaries was 411 MEUR (2023: 296
MEUR). The increase is related to increased activity and profitability in
the Group companies. Net finance income amounted to 3 MEUR (2023:
net finance income of 17 MEUR) the decrease is related to foreign
currency exposure on the intercompany balance between ROCKWOOL
A/S and the subsidiary in Russia. Due to the economic environment, it
has not been possible to hedge this position since March 2022, which
in both 2024 and 2023 has resulted in an unrealised exchange gain. In
2024, profit for the year totalled 541 MEUR against 381 MEUR in 2023.
Statement of financial position
Total assets at year-end amounted to 3,494 MEUR (2023: 3,299 MEUR) and
the equity was 3,024 MEUR (2023: 2,751 MEUR).
Investment in subsidiaries was 2,799 MEUR (2023: 2,331 MEUR). The
increase is mainly due to increased activity and profitability in Group
companies.
Management considers the result to be satisfactory.
For further information, please refer to ROCKWOOL Group
Management’s review on pp. 4-42.
Management's review of ROCKWOOL A/S
176
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Statement of profit and loss –
ROCKWOOL A/S
1 January – 31 December
MEUR Note 2024 2023
Revenue 2.1 495 466
Costs of raw material and consumables 68 83
Other external costs 179 188
Gross profit 248 195
Employee benefits expenses 2.2 73 72
Amortisation, depreciation and impairment 3.1, 3.2 13 15
Operating profit / EBIT 162 108
Income from investments in subsidiaries 2.3 411 296
Finance income 2.4 32 40
Finance costs 2.4 29 23
Profit before tax 576 421
Tax expense 2.5 35 40
Profit for the year 2.6 541 381
Parent company financial
statements for ROCKWOOL A/S
177 Statement of profit and loss
178 Statement of financial position
179 Statement of changes in shareholders’ equity
180 Notes
177
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Statement of financial position –
ROCKWOOL A/S
Assets – as at 31 December Equity and liabilities – as at 31 December
MEUR Note 2024 2023
Completed development projects 9 9
Acquired patents, licenses and trademarks 9 9
Intangible assets under construction 9 7
Intangible assets 3.1 27 25
Land and buildings 25 19
Other operating equipment 12 9
Tangible assets under construction 10 7
Property, plant and equipment 3.2 47 35
Investment in subsidiaries 3.3 2,799 2,331
Investment in associates 1 1
Receivables from subsidiaries 3.3 172 210
Financial assets 2.972 2,542
Non-current assets 3,046 2,602
Inventories 2 1
Contract work in progress 3.4 22 21
Receivables from subsidiaries 285 485
Other receivables 14 6
Prepayments 3.5 11 16
Receivables 332 528
Cash and cash equivalents 114 168
Current assets 448 697
Total assets 3,494 3,299
MEUR Note 2024 2023
Share capital 29 29
Revaluation reserve according to the equity method 832 522
Reserve for development costs 12 11
Retained earnings 1,969 2,064
Proposed dividend 182 125
Total equity 3,024 2,751
Deferred tax 3.6 5 6
Payables to subsidiaries - 58
Other provisions 1 1
Non-current liabilities 6 65
Trade payables 16 18
Payables to subsidiaries 402 440
Tax payable 30 13
Other payables 16 12
Current liabilities 464 483
Total liabilities 470 548
Total equity and liabilities 3,494 3,299
178
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Statement of changes in shareholders’ equity –
ROCKWOOL A/S
MEUR
Share
capital
Revaluation
reserve
according to
the equity
method
Reserve
for
development
costs
Retained
earnings
Proposed
dividend
Total
equity
Equity at 1 January 2024 29 522 11 2,064 125 2,751
Exchange rate adjustments - -1 - - - -1
Profit for the year - 303 - 56 182 541
Development costs for the year - - 1 -1 - -
Exchange differences on translation of foreign
entities
- 6 - - - 6
Other adjustments - 2 - - - 2
Share based payments - - - 1 - 1
Share buy-back programme - - - -149 - -149
Purchase of treasury shares - - - -3 - -3
Dividends paid - - - 1 -125 -124
Equity at 31 December 2024 29 832 12 1,969 182 3,024
Equity at 1 January 2023 29 472 12 1,919 102 2,534
Exchange rate adjustments - - - -5 - -5
Profit for the year - 101 - 155 125 381
Development costs for the year - - -1 1 - -
Exchange differences on translation of foreign
entities
- -54 - - - -54
Other adjustments - 3 - -5 - -2
Share based payments - - - 1 - 1
Purchase of treasury shares - - - -3 - -3
Dividends paid - - - 1 -102 -101
Shareholders’ equity 31/12 2023 29 522 11 2,064 125 2,751
179
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Notes for ROCKWOOL A/S
Note 1
181 1.1 Accounting policies
Note 2
183 2.1 Revenue
183 2.2 Employee benefits expenses
183 2.3 Income from investments in subsidiaries
183 2.4 Finance income and Finance costs
183 2.5 Tax expense
183 2.6 Proposed distribution of profit
Note 3
184 3.1 Intangible assets
184 3.2 Property, plant and equipment
185 3.3 Financial assets
185 3.4 Contract work in progress
185 3.5 Prepayments
185 3.6 Deferred tax
Note 4
186 4.1 Derivatives
186 4.2 Commitments and contingent liabilities
186 4.3 Related parties
180
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Note 1
1.1 Accounting policies
The financial statements of ROCKWOOL A/S have been prepared in
accordance with the Danish Financial Statements Act (accounting class D).
The financial statements are presented in Euro (EUR).
Changes in accounting policies
The accounting policies applied remain unchanged from previous year.
The accounting policies are the same as for the consolidated financial
statements with the adjustments described below. For a description
of the Group’s accounting policies, please refer to the consolidated
financial statements.
Recognition and measurement in general
Income is recognised in the statement of profit and loss as earned.
All costs incurred in generating the year’s revenue are also recognised
in the statement of profit and loss, including depreciation, amortisation
and impairment losses.
Value adjustments of financial assets and liabilities measured at fair
value or amortised cost are also recognised in the statement of profit
and loss.
Assets are recognised in the statement of financial position when it
is considered probable that future economic benefits will flow to the
company and the value of the asset can be measured on a reliable
basis. Liabilities are recognised in the statement of financial position
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.
Revenue
The company produces and sells machinery and consultancy service.
The projects typically include one deliverable. 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 reflect 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.
Financial assets
Investments in subsidiaries are recognised initially at cost and
measured subsequently using the equity method. The company’s
share of the equity of subsidiaries, based on the fair value of the
identifiable net assets on the acquisition date, minus or plus unrealised
intercompany profits or losses, with addition of any residual value
of goodwill, is recognised under Investments in subsidiaries in the
statement of financial position.
If the shareholders’ equity of subsidiaries is negative and ROCKWOOL
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 Shareholders’ 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 reflect other changes in the equity of subsidiaries.
The proportionate share of the net profits of subsidiaries less goodwill
amortisation is recognised under Income from investments in
subsidiaries in the statement of profit and loss. 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.
181
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Note 1
1.1 Accounting policies (continued)
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 calculated 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 statement of
profit and loss.
Payments received on account are deducted from the sales value. The
individual contracts are classified as receivables 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 individual assessment.
Leases
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases are charged to the statement
of profit and loss on a straight-line basis over the period of the lease.
Dividend
The dividend proposed for the financial year is shown as a separate
item under Shareholders’ equity.
Statement of cash flows
ROCKWOOL A/S has in accordance with the Danish Financial
Statements Act, Section 86 (4) not prepared separate cash flow
statements. Please refer to the consolidated statement of cash flows.
References to notes to the consolidated financial statements for
the following notes, see information in the consolidated financial
statements:
Share capital – see note 5.5
Treasury shares – see note 5.6
Auditor’s fee – see note 6.4
182
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
MEUR 2024 2023
Revenue from projects 94 108
Royalties and other fees 401 358
Revenue 495 466
Note 2
2.1 Revenue
MEUR 2024 2023
Interest income 13 9
Interest income from subsidiaries 7 6
Foreign exchange gains 12 25
Finance income 32 40
MEUR 2024 2023
Interest expenses etc. 17 12
Interest expenses to subsidiaries 9 6
Foreign exchange losses 3 5
Finance costs 29 23
2.4 Finance income and Finance costs
MEUR 2024 2023
Wages and salaries 65 64
Expensed value of RSUs issued 1 1
Pension costs 6 6
Other social security costs 1 1
Personnel costs 73 72
Average number of employees in ROCKWOOL A/S 476 497
Reference is made to note 2.2 and 2.3 to the consolidated financial statements concerning remuneration
of the Board of Directors and the Executive Board.
MEUR 2024 2023
Share of net profit/(loss) 422 306
Amortisation of goodwill -11 -10
Income from investments in subsidiaries 411 296
2.2 Employee benefits expenses
2.5 Tax expense
2.3 Income from investments in subsidiaries
2.6 Proposed distribution of profit
MEUR 2024 2023
Current tax for the year 35 34
Change in deferred tax -1 -2
Withholding taxes 2 6
Adjustment in current and deferred tax in previous years -1 2
Tax expense 35 40
MEUR 2024 2023
Proposed distribution of profit:
Proposed dividend to shareholders 182 125
Revaluation reserve according to equity method 303 101
Retained earnings 56 155
Total profit 541 381
183
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Note 3
3.1 Intangible assets
Comments
Completed development projects and Intangible assets under construction mainly comprise software
development.
MEUR
Completed
development
projects
Acquired
patents,
licenses and
trademarks
Intangible
assets under
construction
2024
Total
2023
Total
Cost 1/1 91 42 7 140 139
Exchange rate adjustments -1 -1 - -2 -
Additions for the year - 3 7 10 6
Transfer of Intangible assets under construction 5 - -5 - -
Disposals for the year -1 - - -1 -5
Cost 31/12 94 44 9 147 140
Amortisation and impairment 1/1 82 33 - 115 106
Exchange rate adjustments -1 - - -1 -
Amortisation for the year 5 2 - 7 9
Impairment for the year - - - - 1
Disposals for the year -1 - - -1 -1
Amortisation and impairment 31/12 85 35 - 120 115
Carrying amount 31/12 9 9 9 27 25
3.2 Property, plant and equipment
Comments
Of the total net book value of land and buildings, 1 MEUR (2023: 1 MEUR) represent land not subject to
depreciation.
MEUR
Land and
buildings
Other
operating
equipment
Tangible
assets under
construction
2024
Total
2023
Total
Cost 1/1 39 29 7 75 68
Exchange rate adjustments -1 1 - - 1
Additions for the year - 1 17 18 8
Transfer of tangible assets under construction 8 6 -14 - -
Disposals for the year - -2 - -2 -2
Cost 31/12 46 35 10 91 75
Depreciation and impairment 1/1 20 20 - 40 37
Exchange rate adjustments - - - - -
Depreciation for the year 1 5 - 6 5
Disposals for the year - -2 - -2 -2
Depreciation and impairment 31/12 21 23 - 44 40
Carrying amount 31/12 25 12 10 47 35
184
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Comments
Prepayments consist of prepaid insurance, prepaid subscriptions and other prepaid cost related to
subsequent financial years.
3.5 Prepayments
Note 3
3.3 Financial assets
MEUR
Investments in
subsidiaries
Receivables from
subsidiaries
2024
Total
2023
Total
Cost 1/1 1,809 210 2,019 2,011
Exchange rate adjustments -1 -1 -2 -2
Additions for the year 209 30 239 92
Reductions/disposals for the year -50 -67 -117 -82
Cost 31/12 1,967 172 2,139 2,019
Value adjustments 1/1 522 - 522 472
Exchange rate adjustments 6 - 6 -54
Share of net profit 422 - 422 306
Amortisation of goodwill -11 - -11 -10
Dividends received -108 - -108 -195
Other adjustments 1 - 1 3
Value adjustments 31/12 832 - 832 522
Carrying amount 31/12 2,799 172 2,971 2,541
3.4 Contract work in progress
3.6 Deferred tax
MEUR 2024 2023
Deferred tax 1/1 6 8
Change in deferred tax recognised in profit and loss -1 -2
Deferred tax 31/12 5 6
MEUR 2024 2023
Sales values of work performed 243 218
Invoiced on account -221 -197
Contract work in progress, net 22 21
Recognised as follows:
Contract work in progress (assets) 22 21
185
ROCKWOOL Group Annual Report 2024
FINANCIAL STATEMENTS | Parent company financial statements
Note 4
4.1 Derivatives
Reference is made to note 5.2 to the consolidated financial 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 currency of the company
involved, while cash at bank and in hand are placed in the local
currency.
In the few countries with ineffective financial markets, loans can be
raised and surplus liquidity placed in DKK or EUR, subject to the
approval of the parent company’s finance 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 financial reserves as defined by the Board of
Directors, investment loans can be raised on a continuous basis to
partly cover new investments and to refinance 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 2024 and 2023 amount to less than
1 MEUR. The majority of lease commitments expire within one year
from the reporting date.
4.3 Related parties
The Company has chosen only to disclose transactions which have not
been made on an arm’s length basis in accordance with section 98(c)
(7) of the Danish Financial Statements Act. No such transactions took
place in 2024 and 2023.
ROCKWOOL A/S has registered the following shareholders holding
more than five percent of the share capital or the votes:
2024
Share
capital Votes
ROCKWOOL Foundation, DK-1360 Copenhagen K 23% 31%
15. Juni Fonden, DK-2970 Hoersholm 6% 12%
186
ROCKWOOL Group Annual Report 2024
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, including 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,
production and distribution-related issues, breach of contract
or unexpected termination of contract, price reductions due
to market-driven price reductions, market acceptance of new
products, launches of competitive products and other unforeseen
factors. In no event shall ROCKWOOL 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 A/S 2025
All rights reserved
Photography credits
Shutterstock and ROCKWOOL Group
Design and production
ROCKWOOL Marketing Shared Service Center
Released
6 February 2025
ISSN
ISSN 1904-8653 (print)
ISSN 1904-8661 (online)
ROCKWOOL Group
Phone: +45 4656 0300
CVR No. 54 8794 15