Ladies and gentlemen, hello and welcome to the Kingspan 2020 preliminary results call. My name is Maxine, and I'll be coordinating the call today. If you would like to ask a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I will now hand you over to your host, Gene Murtagh, to begin. Gene, please go ahead when you're ready. Thank you, Maxine. Good morning, everybody, and welcome to the 2020 preliminary results of Kingspan. We've got an awful lot to get through today, so we'll just deal with the results in summary, first of all. We'll move then to the issues surrounding the Grenfell inquiry, and then we'll circle back to delve into some more detail on the business, our strategy, and the results, et cetera. If you've got the presentation in front of you, I'd ask you to go to slide number three, which is titled 2020 in summary. No doubt all of you have got to this already. Despite all the turmoil last year in our markets, for all kinds of reasons, the business delivered a revenue that was down just 2% at EUR 4.6 billion, and a trading profit that was up 2% at EUR 508 million. That was after taking account of the repayment of any government COVID subsidies that we received around the world. It was after taking that into account. The repayment of it, rather, after taking that into account. That all in total resulted in an EPS up 1% to EUR 2.06. In summary, the panels business experienced a decrease of 4%. I'd say consistent with all the businesses, there was a very strong recovery through the second half, and in particular in quarter four. What we're dealing with right now is a similar trend. A good start to the year that we'll come back to in some more detail later. A significant challenge for the business right now is handling of very significant cost inflation, which we expect this year, if it goes as we feel presently, to be in the order of EUR 400 million of cost increases. Naturally, that represents a very significant challenge for us at the present time. Later in the discussion, we'll come back to how we're handling that. In terms of the Grenfell inquiry. The inquiry itself commenced in May 2018, and obviously it has attracted considerable commentary of Kingspan, and our testimony late last year in particular. The report on module one of the inquiry was completed in October 2019. A central conclusion of this aspect of the inquiry was that the PE core ACM cladding on the exterior building was the primary cause of fire spread on the tower itself. Given the relative length of time that Kingspan staff, both past and present, were asked to attend and input into the inquiry, and the scale of the ensuing media coverage, it's quite understandable that there are some misunderstandings perhaps about our role in the Grenfell Tower refurbishment itself. It's therefore important for me to clarify that Kingspan did not supply any of the ACM, and just 5% of the insulation beneath that on the building was inadvertently our product, supplied by a distributor without our knowledge or our advice. Module two, however of the inquiry, which is where it's at presently and where it was just pre-Christmas, commenced in the first half of 2020, and this module covers testing, certification, and marketing of products in the industry. It's in this phase that has attracted much of the commentary around us. We've cooperated fully, as you'd expect, and a number of process shortcomings, particularly in our U.K. Insulation board business, were highlighted by us, and submitted to the inquiry. During the hearings itself, and I'm referring in particular to late last year, a number of key issues arose, three of which are particularly pertinent. Firstly, the historical behavior of some of our people in that particular component of our business were identified, well aired and entirely unacceptable, and completely against the long-held principles that we've had here at Kingspan. Secondly, for a considerable period of time, the K15 product that's been much covered relied on an outdated test certificate dating back to 2005. Again, this was totally unacceptable. Beyond unacceptable, it was also extremely disappointing insofar as that didn't need to be the case. It was extremely poor process on our behalf. That's demonstrated by us more recently, having achieved 15 passes, system passes that incorporate the K15 product itself, and these are passes to the very demanding BS 8414 large-scale fire test. This also includes a retest of the oft-mentioned 2005 certificate. It's important to reaffirm our full confidence in the safety of K15 when it's used in systems that have passed, as I said, the BS 8414 test. Thirdly, there was an accusation of Kingspan having rigged tests on competing products. This clearly was well covered as well. Respectfully, this is inaccurate and has been widely misconstrued. In relation to this issue itself, Kingspan was actually responding to what was a public invitation for submissions. It's not that we were particularly proactive, we were responding to a public process that was ongoing at the time around what insulation or cladding would be used above 18 m. Our intention was very simple, and that was to highlight the need for large scale fire testing no matter what the system composition. The test referred to was in fact a robust construction, which would have been and remains compliant under what's known as the linear route. Taking this course, in our view, was an important matter for public safety, and we were exceptionally taken aback by how it got spun. More generally, we completely acknowledge that these issues, although limited to a smaller part of our business, should not have occurred. We apologize for this and have done so in the past. We're resolute as a team in our efforts to fully meet our obligations in addressing all of these issues and have been actively engaged for some time on this already. To date, a good number of concrete actions have been implemented to ensure this cannot occur again anywhere throughout the organization. These measures include a review that has been carried out by international legal firm Eversheds, the recommendations of which have been published today. We have set up a board committee for audit and compliance, which was constituted in December 2020. We have appointed a group head of compliance, reporting directly to myself. That individual has tentacles through the rest of the organization through product compliance officers in each business unit right across the organization. That team will be implementing the ISO 37301, which is a compliant management system right across the organization beginning in quarter two of this year. We have committed to frequent and timetabled independent third-party reviews of testing and certification, which incidentally is the case already in the vast majority of the business. Also in Insulation internationally, but predominantly across the Insulated Panels Group, that is the way it's been for decades now in fact. We'll come back to that later in the discussion. We've implemented a new code of conduct, which has been issued to all employees in October 2020. Separately, we have ourselves constructed Europe's most modern fire test center at our Holywell facility in the U.K., and this is designed to accommodate much more prolific R&D in the future. Once it is fully bedded in, we expect that this resource will become available to the wider industry, really for the improvement of all. We have also started the process of embedding what will be an industry-leading PIM, which is Product Information Management systems across the organization, which will dramatically improve traceability of our products into the future. I accept that we have been uncharacteristically slow in the implementation of some of these measures, but can assure you that we are on this matter in anger now. These historical issues are in no way reflective of our wider culture and the ethos that we have built over the decades. The commitment to which we've given this, and to which our people are giving this entire impetus is testament to that, and I have no doubt that we'll be a much better business on the far side of this. Many of you will know us for years and those that do will know that's the case. As regards remediation, it's a highly complex and complicated subject, which is getting more complicated, I think by the day and by the week. There are hundreds, if not thousands, of parties involved. There are myriads of issues related to buildings, not simply around facades or insulation. It goes way beyond that. Clearly, the primary target in the rectification of any of this is around the facade itself, which as I've said earlier, is not a business Kingspan has engaged in. We clearly remain fully cooperative with the whole process as we go forward. We've been engaged in this for some time now, and just to give you a flavor for what it's meant for us over the last couple of years, what our process has been, et cetera, I'll just hand you over to Geoff for some further detail. Thanks, Gene. Understandably, we have been engaged across this issue for at least two years in the U.K., engaging with building owners and their advisory teams on these matters. In the majority of those engagements to date, we've been able to close out those discussions without claim. To Gene's earlier point, K15 is a perfectly fit for purpose product when it's used in an appropriate building system. To date, a fractional percentage of those engagements have resulted in claim. By way of further context, I would highlight that worldwide across our business, we have a warranty provision of EUR 119 million on our balance sheet as at the end of December 2020. We reserve through the P&L account every year approximately EUR 30 million of costs associated with warranties. Our approach to these matters worldwide is the customer is first. If we haven't met an obligation to a customer in a market for a product. Haven't done what we said we were going to do, we fixed the issue and we remediated, and we make due an adequate provision for that when we become aware of the issue. The situation in the U.K., in respect of these issues, is that the claims traffic has been relatively low. Now as we go forward, it is reasonable to suggest that there might be further claims coming down the tracks. We can have no certainty on that. If you're to take the annual cost that we have worldwide for warranty of EUR 30 million, if that was to increase by EUR 20 million-EUR 30 million over time, that would be a very manageable issue for Kingspan. I don't mean in any way to minimize or trivialize the issue other than to just highlight that financially, this issue ought to be manageable, and we will absolutely do right by our customers in terms of remediating any areas where we have a responsibility for that. That's great, Geoff. Thank you very much. If we could take you, please, to a different subject altogether, which is on slide four, and it's titled Our Mission. Just to remind everybody of what Kingspan's about, why we're here, and what we intend to be doing in the future. Our mission is clear, and that's to accelerate a net zero emissions future-built environment. We've been on that path for some time, and are very resolute in remaining on that path into the future. In terms of the absolutes of what's been achieved thus far, there's been 164 million tons of CO2 saved, or will be saved over the life of the buildings that we have already supplied in 2020. They're vast sums of CO2. Internally, from a net zero carbon perspective, 35% reduction in absolute scope one and two greenhouse gas emissions, achieved since 2013. In the year just gone by, we upcycled 570 million or the equivalent of 573 million plastic bottles, either into Insulation or into other products. This was done predominantly through our Synthesia business in Spain. From a natural daylight and ventilation perspective, we've generated the capacity to create the equivalent of 9 billion lumens of natural light annually through the daylighting systems that we've been supplying. From a conserved water perspective, over 34 GL of rainwater will be harvested from the systems that we produced only in the year 2020. We'll come to more of this in detail as we go through, but they are the key areas that we're focused on as a business, that drives our strategy and drives everything we do from day- to- day. Yeah. If people wouldn't mind turning to slide seven, just talk a little bit about what needs to happen in order to meet the objectives of the Paris Agreement and stay below 1.5 degrees increase by the end of the century. Buildings have a huge role to play in that, with carbon from our buildings and construction accounting for about 39% of carbon emissions globally. Much of that comes from the building stock and the operation of buildings, and without addressing the energy efficiency of those buildings, we can't really hope to achieve those targets. Fundamentally, we have to address the building envelope in terms of reducing the energy consumption of buildings. That has to happen to enable more general electrification of industry and reduce the pressures on the grid. Renovation is going to be a key tool in the fight against climate change. Clearly we've excellent products within our portfolio to address and break down a lot of the barriers that there are to renovation in terms of disruption, losing space and losing detail and natural light into buildings. That's very high on most agendas all over the world and we would be there to support that. Next, if we could turn to slide 11, just to talk briefly on our Planet Passionate goals and some of the progress we've made this year. 2020 was really a foundational year for the program. We announced our 12 targets at the end of 2019. We really built the strategies and the structures around the business to support achievement of those targets in 2020 and built the teams around to ensure that these happen. They're hard targets that are measured every year. They're tracked throughout the year, and every division has their own targets with respect to meeting them. Significant progress has been made in the year that, the many obstacles around, in terms of being able to travel and in terms of being able to implement things. Some of the highlights I'd pick out is, seven rooftop solar PV projects or installations were commissioned in 2020. As Gene mentioned earlier, we still managed to significantly increase the amount of equivalent of waste plastic bottles that we will recycle this year, up almost 40% on last year, 573 million. 21.1 million liters of rainwater harvested. A lot more detail will come out on our Planet Passionate progress in our report later in March. Finally, just to talk a little bit about our global expansion on page 13. To highlight the U.S, as a case in point, we've progressed our panel line in Pennsylvania. That's to support the ongoing conversion to high performance insulation and building systems in the U.S. We're also seeing very strong demand for our Optimo products, so we hope to support that with a line by 2023, if not earlier. We continue to expand in Brazil as it converts away from traditional materials. We're pretty much opening a facility there every year and saw strong growth there last year due to the new facility south of São Paulo. In France, we'll be opening a hub which will be panels and boards, and that'll be a showcase facility. We'd expect to have that done by 2022. To highlight plans to open a panel line and a board line eventually in Vietnam, expanding our presence or kind of expanding our foothold in the Southeast Asia region. That's great, Catriona. Thank you. Sorry for confusing you. We're just going to reverse back one slide to 12, which is titled Circularity and QuadCore. Naturally, circularity is becoming a much more prevalent theme, rightly so, throughout the world. Just to maybe highlight where the QuadCore insulated panel fits into that. First and foremost, I think most importantly, it's actually a reusable product. Just by its very nature, it's a steel foam, steel insulated panel. It's modularly constructed and can actually be taken down and reused either in similar or probably even lesser important applications. That clearly avoids any process of having to deconstruct the product, all the energy, et cetera, that's involved in doing that. We have a good number of examples where prior insulated panels have been reused, and again, in our Planet Passionate report, we expect to shine a light on that to be able to demonstrate exactly what we mean by that. Going forward, though, we expect to get much deeper into making this a much more deeply circular product in the sense of being able to take it back. The metal, by its very definition, the steel is 100% recyclable. Even presently, our products contain up to 25% recycled steel in any event. Then we've developed a process through our Synthesia business in Spain, whereby the QuadCore core itself can actually be taken back to a polyol, and that polyol constitutes about 40% of what becomes the new blend. We will be setting up our first take-back center in the U.K. probably in the third quarter, and we hope to follow that by a fourth before year-end in our Insulation business, more than likely in Selby in the U.K. We're at the early stages of this. We'd be absolutely confident about how we can take back and either reuse or recycle materials into our products. To be frank, we've never really had to confront this so far because at a level of any serious scale, our products are relatively young, so they're not coming down from buildings. Obviously, we expect the average life of a building to be 40 years, but in reality, many of them can be much longer than that. This is all about us being prepared for the future whenever that take back commences. So far, it's not been a kind of necessary theme for us at Kingspan, but very excited about what we can achieve on that front. To move on to slide 14, which is titled Key Innovations, naturally, a central part of our business all the years. Just to highlight kind of a handful of areas that we're focusing on at the moment. The Powerpanel development has gone very well after being held back naturally a little bit last year. We expect to go live on the initial production of this around mid-year. There's obviously a very lengthy testing and accreditation process the product has to go through. Just to recap what this is a combination of panel and solar PV. It's around the theme of insulate and generate, is where this product will be positioned. You've got your structure, you'll have your insulation, your water tightness, and your power generation all in a single element. Yeah, we'd be very enthusiastic about where we can go with this product in the future. When you think that in five years' time, it's almost unimaginable that a roof will be built without some form of power generation on it. We'd like to get a head start on that by having a fully integrated product on the market, hopefully by the end of this year, if we can get through the accreditation. The AlphaCore has been a little bit delayed. Good work ongoing, but that's been very reliant on international collaboration, and this requires to be physically present, us in places and other people with us. That has pushed it back a little, but we're trying to accelerate that again now. QuadCore continues to roll out. The second version of which we would hope to get to by around the end of this year, and that'll be all around improving on each of the QuadCores, and primarily on thermal and on fire. That's something that, when we get going, will be launched initially in the U.K. and Ireland, and then we'll roll it out from there. With regards to Kooltherm, and not to get too technical here, but in Euroclass, there's A, B, C, D, et cetera. We expect to move the Kooltherm range, or at least the key product areas within Kooltherm up to a standard B class by around year-end of this year. Our most optimum insulation from a thermal perspective is what we call Optim-R. It's got an extraordinary thermal performance, seven or eight times more efficient than traditional materials that are out there. It's relatively embryonic, but now it's beginning to get a foothold in particular applications. Actually a very strong progress in North America in particular. Again, around this area, we want to develop an A-class or what's otherwise referred to as non-combustible. To have our highest performing insulants with non-combustibility will be our target to achieve this during 2022. There's a whole raft of other developments ongoing throughout the organization, we'd feel that these will be key features of the business moving into the near-term future. Now I'd like to hand you back to Geoff to take you through the essential detail of 2020. Thanks Gene. I'm turning now to slide 18 in the deck, financial highlights, just to run through the key highlights of 2020. Revenue of EUR 4.57 billion, down 2% year-on-year. At constant exchange rates, flat year-on-year. A trading profit of EUR 508 million, up 2%, or up 5% at constant exchange rates. As we referenced earlier, we took a decision in December to repay the furlough incentives worldwide. That was EUR 17 million, and that's reflected in that trading profit number, the repayment of it. Our earnings per share up 206.21% ahead. We've proposed a final dividend of 10% of earnings or EUR 0.206, and I'll come to our dividend policy just later in the presentation. A very strong metric during 2020 was free cash flow. That was up 42% versus the previous year at a little under EUR 480 million. Our net debt was significantly lower than we would have guided back toward the end of last year. We came in about EUR 50 million lower than consensus. Our leverage at the end of 2020, net debt to EBITDA of 0.4 times. Our trading margin was strong in 2020, 40 basis points ahead versus the previous year. I'll come to the constituents of that by division in a second. Our effective tax rate was down slightly during 2020 to 16.3%, primarily due to the geographic mix of earnings. We continued to generate strong returns on capital employed, making further progress of 110 basis points to 18.4% for 2020. Moving to the margin performance on page 19. Pretty much every division recorded a strong margin performance during the year. There was a couple of key themes within that across the business. Firstly, we did benefit from some raw material deflation in the earlier part of the year. Secondly, from an overhead perspective, particularly in the early stage of the year, some of the more discretionary overhead type items were curtailed for a period of time at the onset of the pandemic. That normalized towards the back end of the year. By division, Insulated Panels continued to make progress. Margin performance of 11% versus 10.4%. Within that, QuadCore continues to advance. Its sales grew by 33% during 2020, so it now makes up 12% of our Insulated Panels sales. Within Insulation Board, an exceptionally strong margin performance of 14%. That margin performance will not be repeated in 2021. We'll come to the raw material piece, I'm sure through the discussion. Light & Air at 7% was due primarily to the integration of a very significant development in the Light & Air division during the year, which was the acquisition of Colt. The trading margin within that division is progressing to plan. Water and Energy delivered a strong margin performance of 8%, a particularly good performance on the cost base of the business across all categories. Data and Flooring performed well, particularly strong performance in the data center segment. Margins there landed at 13.1%. All of that combined to deliver a group trading margin of 11.1%. Turning to the sales and profit bridges on page 20. You'll see those set out firstly on sales. The principal constituents of the sales move year- on- year. Firstly, currency was a negative of 2% or EUR 102 million. Acquisitions contributed 7% of our sales growth during the year at EUR 335 million. Underlying sales were down 7% or EUR 316 million. Much of that was in the earlier part of the year when we had the significant disruption associated with the pandemic. From a trading profit perspective, currency was - 3% or EUR 14 million year-on-year. Acquisitions contributed 6% or EUR 31.8 million to profitability during 2020. Underlying profitability down marginally, down by EUR 6.6 million. Turning to free cash flow on page 21. A standout year from a cash perspective. EBITDA, naturally the key contributor to it at EUR 596.5 million. We had a very strong working capital performance. Working capital reduced by EUR 107 million during the year. Our working capital to sales ratio at the end of December was 8.8%. That compares to a three-year average of closer to 11.5%. I think there were some specific issues that gave us a low working capital level at the end of 2020. Inventories generally across the business were lower than normal. We would expect the working capital percentage to normalize through 2021, not least for reasons of raw material inflation, which we've referred to. Other items on the free cash flow bridge, interest outflows EUR 21.6 million. Tax payments of EUR 89.7 million. Net capital expenditure of EUR 126 million during the year. All combining to give us a little under EUR 480 million of free cash generation during the year, up from the EUR 337 million that we delivered in the previous year. In terms of how that played out on overall net debt, that's set out on the next page 22. We started the year with EUR 633 million of debt, and free cash substantially reduced that during the year. Our acquisition spend during the year was EUR 46 million. We ended the year with EUR 236 million of debt. Our dividend policy is set out on page 23. During 2020, we outlined that we were going to review our dividend policy. As part of that review, we formally sought shareholder views. Our objective in assessing the policy was to balance our dividend with capital allocation for longer-term growth and to preserve our ongoing balance sheet strength. The view of the shareholder base generally was to prioritize the longer-term capital growth whilst also affording some space for annual income. Our outgoing policy was a 25% payout. Our revised policy is to pay out 15% of earnings with effect from our 2021 financial year. As an intermediate step, we've announced and are proposing a final 2020 dividend, which amounts to 10% payout for 2020 or a dividend of EUR 0.206 per share. Our return on capital profile is set out on page 24. This is a metric which we drive through the business year in, year out, and we've recorded further progress during the 2020 financial year. Our return on capital employed landed at 18.4% for 2020. Our sales by geography are set out on page 25. What we've done on this occasion is given the extent of our European sales territory, we've given some further analysis of that. We've identified two European regions, Western and Southern Europe, and secondly, Central and Northern Europe. If you take Western and Southern Europe, it comprised EUR 36 million of our revenues in 2020 as compared to 33% the previous year. Central and Northern Europe pretty consistent year-on-year, 22% in 2020 versus 21% in 2019. The Americas, again, consistent year-on-year, 20% in 2020 from 21% the previous year. Britain comprises 16% of our revenues in 2020, down from 18% the previous year. Rest of world is 6%, so pretty much in line with the previous year. With that, I will hand back to Gene. Thank you very much, Geoff. We won't labor through all of the divisions, but no doubt we'll get time to do that over the coming days. We take you to slide 32, which is titled Outlook. As we mentioned earlier, 2021, we're almost seven weeks through 2021 now, it started very well, in fact. We would have noted that towards the end of last year, our backlogs were strong. Record backlogs, in fact, in a lot of countries. If anything, they've got stronger through the first seven weeks. Trading top line and bottom line has, as I said, been very positive. The raw material issue, again, which we referred to earlier on, is absolutely a challenge. Our primary purchases are around steel and polyurethane related chemicals, amongst others. We're seeing dramatic inflation in both of those, and it's unusual for us to see it in both materials concurring. It's happening worldwide, very steep, in some cases well in excess of 50% increase in a period of six months. If this level of pricing inflation, or what we expect through Q2, is to stick, there'll be a year-on-year increase of approximately EUR 400 million. Obviously, our approach to this has always been to recover it, that effort is underway since quarter four last year. Naturally, you'd expect some lag, which there will be, as we've got orders, we've got committed backlogs that will obviously be at previous prices. In the past at least, we've always been successful in getting the job done, and I've no doubt we'll get that done again this year. Just more broadly, the balance sheet, as Geoff referred to, is in great health. Our appetite on the development front is as much or more than it's ever been. We're well-positioned to tackle what comes our way and to take whatever opportunity comes our way as well this year. Maxine, we'll open that to questions now if that's okay. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your telephone keypad now. Our first question comes from David O'Brien from Goodbody. Your line is now open. For taking my question. Three from me, please. Firstly, look, you very clearly provided a lot of reassurance around K15 testing. Could you elaborate a little bit more on the comments you made, that you've reviewed the remainder of the Kooltherm product range as well? Secondly, in regards to your commentary on positive trading year- to- date, does that include the U.K., and can you give us some color on that performance from both a panel and board perspective? In the same breath, are we seeing any moves from rigid insulation to fiber? Finally, just on M&A, look, we've all seen the press speculation indicating the process you're involved in roofing membrane, which subsequently transacted at a multiple implying single-digit returns on capital. Given that there is the positive long-term outlook there coupled with lower interest rates, do you have to reassess the multiples you're willing to pay to get involved there? Thank you. Okay, David. Thanks for those. We'll start in reverse if you don't mind. In terms of, yes, there was a widely publicized opportunity last year that we were involved in. The number got away from us. The opportunity, and in general, that kind of end market is something that we've been targeting for some time. We've a rigid board presence in there, but our membrane presence is limited to products like Topdek, X-dek, and Unidek, which are actually progressing very well. We need to get deeper into it. I guess at a very broad level, we'd have up to around EUR 2 billion of firepower. Do we have to review multiples? Quite possibly, although we still need to maintain discipline. We've been a returns-oriented business forever, and I think we clearly don't want to abandon that. As you rightly point out, at the current interest rates, and particularly if we can secure 10-year money at extremely low levels, that might enable us stretch a little more than we have done in the past. On trading overall, yeah, almost without exception, we've had a good start. Very few markets would be at par or below last year. That includes the U.K. Both the panels and the board businesses in the U.K. have actually traded well in the early part of the year. The order bank for Insulated Panels, which obviously, by its very nature, it needs an order bank because it's all bespoke, is significantly up on what it would have been in February last year. You asked about rigid to fiber. It's very clear in the kind of high-rise residential applications in the U.K. in particular, there's absolutely been a shift, that's been a mandated shift, I'd say, rather than necessarily a market shift. That has been happening over the last couple of years. More generally, and just as a barometer, we, as you know, we're the largest producer of mineral fibre core insulated panels in the world, and by some stretch, within our overall range. In 2019, that represented 11% of our global volume, and in 2020, it represented 10% of our global volume. I wouldn't be highlighting that as a shift really one way or the other, but it's definitely not a negative shift. Obviously within our panels business, the QuadCore aspect of it has been the key highlight. It's now up to 12% of global sales and growing even more rapidly this year. In terms of the wider testing of Kooltherm, as we've said, no issues of safety or materiality have been highlighted. There's been a historic marketing inaccuracy that's been well aired at the inquiry, that obviously came up, but that relates to a classification, actually, that's since been replaced by what's known as the Euroclass norms. These are norms that they apply right throughout Europe and indeed the U.K., and we comply at many levels and across many different products and many different applications, we comply fully with the Euroclass norms. Just when we're on the subject of a wider review, we haven't managed to get through the entire organization because we produce thousands and thousands of products. What I can say to you is that the vast bulk of the group, and in particular, the Insulated Panels business, is independently reviewed and validated oftentimes several times annually. This happens through bodies like Factory Mutual, Underwriters Laboratories, the Loss Prevention Certification Board, just to mention a few. This involves regular site visits, samples being taken randomly off for testing. That's been a process that actually for decades we've been going through in our panels business in particular, but increasingly in boards as well. This process really provides assurances not just to us, but the wider stakeholder community around the performance of our products. Third-party assurance is the way to go, and we'll be increasing that level of oversight in the business into the future. That's great. Thanks very much. Thanks, David. Our next question comes from Flor O'Donoghue from Davy. Your line is now open. Thank you. Hi, Flor. Good morning, everyone. Hi, Gene. Hi, Geoff. Hi, Catriona. Thanks for all that. It was very comprehensive. I'll just stick with a couple. If I can go back to the raw materials, thanks very much for giving us some good detail on that. Just wondering on the EUR 400 million, is it correct to kind of suggest that effectively means you'd be looking to push prices up this year by circa 8%-9%? Secondly on that, just where it's coming from, you obviously mentioned steel and chemicals. Is it pretty evenly distributed between the two, or is it more skewed towards one or the other? I guess just to remind us again of the bill for each of them in terms of what the level of likely spend is. Second thing is if I may also just go back to M&A. Just wondering in terms of the pipeline and what the outlook is for this year? I know you have a couple deals there that are either just about to close or in the process of closing, but just beyond that in terms of maybe deploying some of the balance sheet capabilities that you have. Just as an addition to that, just interested to hear your thoughts on, you've obviously decided to put facilities in Vietnam, just the sense of the opportunity there in terms of the market size and say the, I guess the kind of the medium-term opportunity in Southeast Asia. Okay, Flor. Yeah, you got quite a bit in there. From a raw materials perspective, yes, that'd be about right to say we'd be looking on average for increases of probably 8% or 9%. I think in some product categories, a lot more, bearing in mind we're probably not seeing disinflation as much in some of the other divisions. Yes, and that's a tall order incidentally. Our wish clearly would be to recover margin on the increase in materials as well. Naturally, that could be difficult. Our starting point would be to get the 400 back. Initial indications are reasonably positive on that front, but it's a challenge, as I said. In terms of proportionality, steel is definitely the bigger proportion. Not just because of its scale, but also in the level of increase. Essentially, kind of what's happened here is that I'd say the industry got caught out a little as demand was lower last year, and I think demand has probably recovered in some areas more rapidly than they might have expected. The capacity isn't coming on stream commensurately. That's where the tightness exists. It'll be interesting to see where steel goes in the second half. Let's just see how that evolves. From an M&A pipeline perspective, there are a couple kind of ready to go now, as you pointed out. There's the typical bolt-ons still underway throughout the business and plenty of activity on that front, as you'd expect. Overall, what I'd say is that the pipeline's probably more lively than I've ever seen it. The opportunity is there, and we've obviously got the balance sheet scope to execute as well. That's the position there. In terms of Southeast Asia, we've been supplying that predominantly from Australia, sometimes from Turkey or India, but predominantly from Australia. It's very, very hard to actually get any kind of deep foothold in a market from a distance. Vietnam is an extremely interesting and vibrant market. It's an excellent distribution point for a lot of the Southeast Asia area. The key areas that we would be focusing on there is food, technology, and distribution, and they're all areas that our product set's ideally geared towards. We think now is the time where we would expect to settle on a site for the Insulated Panels business, hopefully within the next month or two. Then the Insulation business will be hot on the heels of that. We're up and at it, and we've a team appointed for the execution of that project during 2021 and 2022. Thank you. Just on the- Sure. Just on the spends themselves, Flor, just on that question, and these are 2020 numbers, and clearly in these inflationary times, a bit of a moving feast. The spend for 2020 on steel was approximately EUR 1 billion, and on chemicals, approximately EUR 500 million. Both of those are 2020 numbers. Great. Thank you. Yeah. Thanks, Flor. Our next question comes from Yves Bromehead from Exane BNP Paribas. Your line is now open. Good morning to all of you. First of all, I just want to say congrats to you Gene and the success of Kingspan throughout this year. All the best for his well-deserved retirement later this year. If I could, I have three questions. Sorry, thanks, Gene. Three questions on my side, maybe number one, just coming back to Grenfell, but also more generally to the wider high-rise dwelling issues, including the kind of cladding scandal and the insulation facade repair works outlined by the government. I just wanted to understand how you're thinking around some of the provisions, the financial risk, and if Kingspan could also be held liable, sorry, for some of the remediation works that needs to be done on those high-rise dwellings, including maybe below 18 m as well. My second question is just whether you've seen any damages and impact on your position with customers around more generally the foam insulation industry, from that Grenfell issue, but also related to Kooltherm in the U.K. and in Europe. Last but not least, my last question is on the U.K. and EU renovation potential. The U.K. has just formally announced sort of its new Part F and Part L of the building regulation. London is tendering for a EUR 10 billion social housing renovation package, so quite huge numbers there. What is your view in terms of the opportunities for Kingspan in the U.K. but also in the EU in terms of renovation? Thank you. Okay. Yeah. Thanks very much, Yves. From a Grenfell and from the tower itself, it's obviously very difficult to speak about that in particular. I think we hopefully characterize pretty clearly what our position was on it and our lack of input in any respect, whether it was design, construct, advice or anything on the tower, not to mention the extremely limited amount of materials. That's a project that will take its own course. More generally, as Geoff expressed, the position is genuinely, it's extremely complicated. I know what the government announced recently, and obviously the focus of the government's announcement was very much around the ACM facades. That's clearly been highlighted as the primary issue, and it certainly seemed to be the central point of what the government's announcement was last week or the week before. From our perspective, where our product is not backed by proper large-scale testing and certification or has been used in the wrong application directly as a result of poor advice from us, we will absolutely stand up and deal with those issues. Where not and where the product's completely compliant with what were or are the building codes, that kind of speaks for itself, Yves. There's a long road to go here. There's, as I said, hundreds if not thousands of parties involved. Bear in mind through all of this that Kingspan doesn't design anything and it doesn't construct anything and it doesn't sign off any buildings. It's never been our role or our responsibility, so it's deep and wide the issue. In terms of liability below 18 m, that's not something we've encountered at all. We haven't even been challenged on it, never mind of liability. Whether it spreads to there or not is yet to be seen. I think lots of other things need to be taken into account. Insulation, how it performs long term, what the implications are for the structure of the building, the cost of the building. There are lots of things that need to be taken into account, not simply the fire subject, which is obviously one we major on. We need to be careful because we need to also save energy for the long term as well, and we've got the best solutions to achieve that. In terms of trends in Kooltherm, unsurprisingly, they would be under pressure in the U.K. That's probably been over the last couple of years, Yves, to be honest. Obviously, the product got dialed out of the over 18 m, and naturally you get some contagion into other applications. Interestingly, overall, the board business, whether it's PIR, XPS or Kooltherm, is actually up, and up quite materially year-on-year, even for the first seven weeks of this year in the U.K. It's maybe shifting from one technology to another, but that's our experience overall. Elsewhere, like in Europe, Western Europe, up into the Nordics, very fast-growing markets for Kooltherm, and that's been completely uninterrupted. If anything, it's actually accelerating. From a renovation perspective, the opportunity is clearly large for us. We're about 25% renovation as a group, and that's been growing as a percentage of our business. I know historically we would have been seen as a primarily new build business, but our solutions go way beyond that. They've been growing. I'm always slightly skeptical of these measures and Green Deal and whatever. Our position very much is kind of bring it on and when it comes, we'll be able to assist with the solutions. It's not something we bank on. Okay. Thanks so much, guys. Thanks, Yves. Our next question comes from Gregor Kuglitsch from UBS. Your line is now open. Hi, good morning. Thanks for taking my questions. Can I just go back on sort of the M&A side? Think, obviously you kind of called out a healthy pipeline. I guess I'm interested whether anything more strategic there, obviously Firestone would've been on the membrane side, but if I recall, now dating back a few years, there's obviously a few strategic areas such as membranes, but also industrial insulation. You kind of wanted to make a bigger impact and, obviously, I would say not very much has happened since then. If you could just maybe flesh out your appetite or whether there is anything larger out there that could kind of move the dial on those particular areas. Just to be very clear what you're saying on the product side, just to understand on the mid-rise buildings, we understand in the U.K., 18+ m, your product isn't being used at all. What's your exposure to that sort of suite of six story, and is there anything happening in that regard? Is there any market share loss that you can see? One on the first quarter. You've highlighted a few times it's quite strong. Could you put some numbers around kind of how strong is the first quarter? I appreciate by the time we get into March, you'll be lapping kind of COVID comps, but as it stands today, are we talking double digit growth organic? Just whichever way you'd like to phrase that. Maybe one small one on CapEx if you could just guide us, that would be helpful. Thank you. Okay, Gregor. Just from an M&A perspective, as I always expect, plenty of bolt-on activity. Obviously, there was a bit of a drought last year because there was clearly logistical roadblocks, but we've a fairly full pipe of kind of small to medium sized bolt-ons that have historically worked very well for us. From a strategic perspective, you're right, we've highlighted for some time membrane and industrial. If you recall at the time, we said this was our long-term view of completing the envelope. It wasn't something we were expecting to be imminent back, whatever, three or four years ago. I suppose our intent became very clear late last year. It's a pity we missed out on that. There hopefully will be other opportunities in that sphere. Small, medium, potentially large, and I think the same applies for industrial. That remains very much part of our scope. We're probably running up at close to EUR 200 million of organic revenue in our industrial insulation business, covering pipes and ducts and applications like that. Organically, we've actually been growing very well in that area, and yes, we're intent on moving that along at pace and working on some opportunities there. From a product perspective, above 18 m, you're right to some extent, but we do actually have a product called K-Roc in the range, which is an OEM produced, mineral fiber product. We are actually active in the above 18 m, although we might not shout about it. We intend to grow our position in that area through that, and as I said earlier, when we get around to eventually having the AlphaCore product, that's going to be key. We do have a presence in that and also in our insulated panels solutions in some cases. Indeed, with our Dri-Design facade solutions, we're predominantly over 18 m, so we do have a presence in that area. Just on trading to date, Gregor, I have to stress it's early days. We're very early into the new financial year, but in the first six weeks, our sales were ahead by approximately 20% versus the first six weeks of last year. Order intake globally in our Insulated Panels business, is up by a similar quantum in the first six weeks as well. It is a strong start to the year, but very much early days in terms of 2021. A couple of extra trading days. A couple of extra trading days in January, absolutely, in terms of the way the trading calendar fell. Okay, that's organic, right? That's organic. It's all organic. Yep. Okay. Thank you. The CapEx? CapEx for 2021 is EUR 150 million approximately. Okay. That's really helpful. Thank you. Thank you very much. Thanks, Gregor. Our next question comes from Arnaud Lehmann from Bank of America. Your line is now open. Thank you very much. Arnaud. Good morning. Three questions, if I may. Firstly, could you say a word on Kingspan culture? I appreciate for any business, you try to find the right mix between pushing for more sales volumes, also sticking with compliance and regulations. As you highlighted, there was issue in the U.K. boards business. Could you please explain, coming back to basics, in a sense, what is the culture of Kingspan, how can we feel confident that this was really a localized issue with the U.K. boards business rather than a broader issue with the culture of the company? That's my first question. Secondly, just coming back on M&A, could you give us an indication of the multiples you paid, I guess, for the last few deals? I'm thinking of Colt, Terasteel, Trimo, I think Caledon that you announced today. I'm assuming this was kind of single-digit EBITDA multiples. Am I right to understand from one of the previous question that you would be ready going forward to go towards double-digit EBITDA multiples for larger acquisitions? Just coming back, if I may, on Geoff's comment around claims in the U.K., I think you say you spend on a rolling basis, EUR 30 million a year on claims globally. If it was to increase by EUR 20 million-EUR 30 million, that would be manageable, and that's a fair statement, but where do you think going to EUR 50 million or EUR 60 million a year in total is your expectations or is that just a scenario analysis at this stage? Okay. Okay, Arnaud. That's a bit wide ranging now. In terms of culture. In terms of culture, so you'd be aware that the origins of the business and very much today, the ethos in the business is family oriented. It's always been the way. Coming with that, you'd expect honesty and integrity to be absolutely central to our culture, and it is. Always has been. Now, alongside that, obviously, we're a business. It's a demanding environment. It's very entrepreneurial in its style. None of that should ever be confused with creating pressure to do things that we shouldn't do or to cut corners or to do anything like that. It's a demanding environment at all levels. It's demanding about what we make, how we make it, how good we make it, how we sell it, how profitable we want it to be. It's demanding at all levels. It's not demanding over on the right-hand side of the equation at the cost of the left-hand side of the equation. That's not the way it is. It's never been the way it's intended to be. Rightly or wrongly, we've worked on a basis of trust, probably more so than we should have, or I'd say demonstrably more so than we should have. I think trust is still something that's key to have between people, particularly in the type of culture we have, but we clearly need to be more systems robust to be able to be belt and braces around that and not just rely on it. To be quite honest with you, we got caught out on the trust equation here, and it's as simple as that. That's the long and short of it. Yeah, we'll be absolutely resolute in ensuring that the principle of the business gets re-embedded, if you like, in that area of the company. It was a big letdown for us, probably much more so than it was for anybody outside, I can assure you. In terms of multiples, we're probably buying at an average, I'd say of eight-ish, at the outset, is probably been where we've positioned things. Some are lower, some are higher for obvious reasons. Whether we get pushed to the higher multiples or not, it's very hard to buy high profile assets probably for 8X at the moment. There are some very decent businesses that can be bought at that, and indeed below, depending on what end sector it is. Some of the more higher profile deals that get auctioned, it's difficult to get them at that. We may have to brighten up a little in some areas. Arnaud, if you wouldn't mind just repeating that last question you had in respect of claims. We were competing with a drill here in Kingscourt, so I didn't quite hear it. If you wouldn't mind repeating it. Sure. Happy to hear there's building activity happening in Ireland. Very important, yeah. Absolutely. No, I was just coming back on your comment in the introduction you said on the claims that you were spending about EUR 30 million a year globally, and that if it was to increase by another EUR 20 million or EUR 30 million, that would be manageable, and I think that's a fair point. I guess my question is, where does this EUR 20 million-EUR 30 million increase is coming from? Is this just an example or you think that's a realistic outcome, with what's happening in the U.K.? What I would say, Arnaud, is that number at this point is nothing close to a run rate. We incur across all markets currently about EUR 30 million. The claims experience in the U.K. currently in respect of the issues that we've spoken about at the moment is very low. It was more to just outline that in a scenario where the claims experience was to increase by EUR 20 million or EUR 30 million, that's a situation that Kingspan could adequately handle. It also has to be stressed that that's not something that we're currently seeing at this point. We remain very much tuned into this. To repeat the point that was made earlier, where Kingspan has an obligation to a customer, and has a responsibility to a customer, we will absolutely step into that and deal with it, as we do in every other market around the world and have done so for many years. That's very clear. Thank you very much. Our next question comes from Lash Mahendrarajah from Berenberg. Your line is now open. Morning all. Hello. Thanks. I've got three questions, if that's all right. The first is on the dividend and capital allocation. I know you alluded to it at the H1 results. Why are you doing this now? I know you've already given us CapEx guidance for next year. Should we anticipate an acceleration in organic investment and new factories across the board going forward, and particularly in the out years? Secondly, on Kooltherm and getting it to B class. Presumably that still cannot be used on high-rise buildings. Does that add any additional scope elsewhere in terms of other buildings, whether for the linear route or large scale testing? Lastly, on raw material inflation. Historically, that sort of increasing share of Kooltherm in the mix has sort of offset a lot of that raw mat inflation, particularly in MDI. Is that something we could expect again, or is the sort of more general broad-based raw mat inflation going to mean we shouldn't see that this year? Thank you. Yeah, I'll start just with the raw material piece. You're right. Last time out, when the MDI went completely crazy, it was an opportunity for conversion actually up into Kooltherm. We would clearly see the scope for that depending on how high MDI rises. Right now, we actually don't expect it to get to quite as lofty a level as it did a couple of years back. If it does, we have the scope. There was also conversion at the time into XPS and EPS on the continent, depending on what the applications were. Yes, we obviously have a spectrum of materials that we can substitute if that's the case, and in particular, if the raw material becomes short, which was more the issue last time out. We got scope there. In terms of Kooltherm, Lash, and B class, we actually have a product currently that does achieve that in one of the applications. It's more to try and get that, not across the entire range, but more across all of the critical applications. From a high riser above 18 m, if you like, perspective, the product is sold in robust systems day in and day out still. If anything, it's actually increasing its share in some markets. The B classification product with the right facade is an extremely robust solution. I know it's not the time for certain markets to be considering that. What I can tell you from an absolute performance perspective, it's extremely robust when it's partnered with the right external facade material. CapEx. Yeah, CapEx for 2021, approximately EUR 150 million. I think that's probably a reasonable run rate going into 2022 at this remove from that. I suppose currently we have in excess of EUR 2 billion of development capital available. Naturally, the lion's share of that over time will be deployed by way of, on strategy M&A will be the significant piece of it, and we'll continue to organically develop the business as well at that level. Okay. Thank you. Thanks, Lash. Our next question comes from Yassine Touahri from On Field Investment Research. Your line is now open. Yassine. Yassine, you're on the line. Yes, good morning, gentlemen. A couple of questions from me. You're talking about increasing your price by 8%-9%. Can you hear me? Yes, yes, we can. Can you hear me? Yes, we can. Hello, hello. Can you hear me? Yes, we can hear you clearly. Maxine, can you hear us? Can you hear me? Oh, yes. Perfect. Yeah. You mentioned, okay, perfect. Yes, perfect. The idea, I think, is that you mentioned that you were increasing prices by 8%-9% in your Insulation business. The question I have is that, do you think all of it will stick? To what extent are you comfortable sticking to this, let's say, 9% price increase if it means that you will lose market share? That would be my first question. My second question would be, in addition of the raw material inflation, do you see any availability issues for MDI? I understand that a couple of MDI plants, for example, one in Texas has been shut down. There might have been some logistical issues also related to Brexit to get some MDI into the U.K. Could it impact your capability to supply your customers? Okay. Have you another question? Those would be my two questions. Okay. Yassine, on the inflation, as we pointed out, yes, 8% or 9% across the piece. I think in some product categories- Hello. Okay. Can you hear us? Maybe move on to the next person. Maxine, can you hear us? Yes, just turning it loud in case. We seem to have a problem with Yassine's connection. Maybe if I go Yassine. You can? Okay. yes, Yassine, we do expect the prices to stick. No, I can hear you very well. All right. Maxine, would you just cut him off, please, and we'll answer the question. Please continue. Thanks, Maxine. Yes, if you can hear us, Yassine, we do expect the prices to stick when we eventually get them embedded. In terms of market share, it's not our expectation to lose market share. That might be the case in the early part of the effort to get increases. That can happen. Ultimately, everybody else is going to have the same inflationary experience, and it's to such an extent, I don't think they have an opportunity but to pass them on. You're well up to date in terms of the MDI issue in Texas. A couple of days ago, BASF declared force majeure on their MDI plant in the U.S., and that obviously is creating a little bit of tension. As things stand, we're not aware that we're going to be cut off, but naturally, we'd be very mindful of that. As I said in the earlier answer, that we'll be looking at product substitution if that does become an issue. Thank you. Our next question comes from Cedar Ekblom from Morgan Stanley. Your line is now open. Thanks very much. One follow-up question on remediation. Appreciating that there is quite a lot of uncertainty, is there- Yeah information that you can give associated with the percentage of revenues or an absolute revenue number that may be linked to selling Kooltherm products that didn't necessarily have the right safety certificates associated with it? I don't know if that's a number that you guys have run internally that you could share. Yeah. I don't mean to be in any way kind of not answering that question, but it's very complicated. We've done a huge amount. The K15 product, and I'm joking not, is the most tested insulation for high-rise facades in the U.K. by some stretch. We have a very extensive bank of live and valid tests and certifications. We won't know until we go through building by building exactly what the construct is. Does the certification cover it or not? Did that have anything to do with Kingspan in the first place? Was it our advice, et cetera? There's a lot of moving parts in it, and to be honest, we just can't answer that question. As Geoff said, our experience to date has been well covered. Yeah, the only point that I would add to that is that at its peak, K15 sales annually would have been EUR 16 million per annum. That was the quantum of it at its peak. Clearly, it's a lot less than that now. Perfect. That's very helpful. Thank you. Thanks, Cedar. Sorry, continue. No, you go ahead, Maxine. Our next question comes from Brijesh Siya from HSBC. Your line is now open. Thank you. Good morning. I have two questions as well. First one is on margin. Would you be thinking about going back to around 2018 kind of trading profit margin for this year, considering the significant raw material increase which we are kind of experiencing right now? The second question is about the volume. You have seen a great start to the year. Does that mean that we are in for a recovery of 2019 volume in 2021? Well, just on the margin point, I think given the lag, which is part and parcel of the recovery effort, it's unlikely that we will repeat the margin performance of 2020, which was 11.1%. That's an unlikely margin for 2021. It's more likely to be mid-10%, 10.4%, 10.5%, allowing for that lag. That's our best sense of it at this point. The second question? When volume could be recovered. Okay. to 2019 volume. Yeah. It's far too early in the year to really call that. Already the volume actually is ahead of 2019, in fact, across most businesses. As I say, we've had a particularly good start. We had the benefit of an extra couple of trading days in January. I think encouragingly, our intake has been strong. Obviously in the Insulated Panels business, that kind of gives us a two to three-month view on things as well. That's encouraging so far. Thank you. Okay. Thank you very much. Thank you. Our next question comes from Rajesh Patki from JP Morgan. Your line is now open. Yeah. Thank you. Good morning, all. First question. Morning I've got is on the order book that you mentioned. The good level of order books in the panel business, how much of that is supported by the pre-buying activity that you mentioned at the Q3 trading update? If I try to put it another way, the underlying improvement in the order book position, if you can give some color on that'd be helpful. The second question is on the provisions and claims. The incremental provision for EUR 20 million-EUR 30 million potentially, is that essentially aimed to cover an increasing proportion of potential claims in the U.K. alone? Are you considering potential claims elsewhere in the business as well? Lastly, on the wages, if you can provide some color on how you see the wage cost piece evolve this year, particularly given there were salary cuts globally for a couple of months during last year. Thank you. Thank you very much. Just in terms of the backlog, you'd be right to suspect some pre-buying. It's very, very hard for us to distinguish between what is and isn't, except what we've been seeing is this level of intake has been pretty robust for the last three or four months. It's not something that's been just very recent. As I said, we'd be encouraged by it continuing through January and February. Honestly, it would have been a concern of ours in Q4 last year, but we'd be encouraged by the progress at the beginning of this year. Yes, there's some degree of it, but as long as somebody keeps pre-buying, that's the main thing. Yeah. As regards the claims piece, Rajesh, the additional EUR 20 million-EUR 30 million that I've mentioned, just to absolutely emphasize, that's not a run rate we're currently seeing. It was more just to outline, if that were to happen, the adequacy of our financial position and being able to deal with that. We just have to take that as it comes and address it as it comes. That's the situation on that. As regards payroll, during 2020, at the onset of the pandemic, we implemented some very significant short-term pay reductions across the business. We reversed those in the second half of the year in light of the trading performance of the business. We're back now to a normal run rate from a payroll perspective. Great. Thank you. Thanks, Rajesh. Maxine, we'll take one more question, please. Oh, that's it, is it? We have no further questions, so if you'd like to continue. Oh, great. No, that's fantastic, Maxine. Thank you very much. Thank you all for joining us. No doubt we'll be speaking over the course of the next days and weeks. Thank you. Thank you. Thank you. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.