Kingspan project 2

Sustainable, Reliable, Affordable

Daniel Murphy Munir Mohammed Wale Sotuminu

Formal Company Mission Statement

Kingspan Insulation operates a mission statement, with the goal that:

Kingspan Insulation will be the premium quality producer and supplier ofnon-fibrous thermal insulation whilst keeping people, the environment andthe future success of the company at the forefront of its activities.

The Group-level principles are supplemented locally by the KingspanInsulation Employee Handbook and relevant provisions of other policies,covering issues such as Human Rights; Local Supply; Environment; EthicalPurchasing; and Equal Opportunities. Kingspan Insulation recognizes theimportance of conducting its business in a responsible manner.

This is demonstrated in the way the company deals with its employees,customers and the wider community in which it operates. To this end,Kingspan Insulation has formalized and adopted the followingsustainability and responsible sourcing policies.

Kingspan Group plc is a building products business focused on establishingleading market positions by providing energy conserving and renewableconstruction systems with a global reach. The Group’s strategic focus is topursue a broadening geographic footprint of sustainable building solutions,with market leading positions in regions where energy conservation andcreative aesthetics are the priority.

Does this statement define the business?


The answer is yes without a doubt. It defines what they doand how they should

Run the business with certain rules and policies to follow.It states there ethical

View this as well helps the business a lot in an argument ifthey are environmental

Friendly they laid this out very well and defined just aboutevery aspect of running

The business with no faults all coming to mind.

A declaration of the overall vision of Kingspan

Kingspan recognizes the importance of conducting itsbusiness in a socially reliable manner. This is establishedin the way they deal with their employees, customers and thewider community where they operate. Kingspan also considersthat corporate social responsibility is an important part ofgood business management.Kingspan has formalized and adopted its sustainabilitypolicy in which it is being implemented across the Group.The vision is for Kingspan:

“To be a global leader in sustainable business and establish a leadingposition in providing ethical, renewable and affordable best practicesolutions for the construction sector.”

Pushing for sustainability in all their business productsand operations is their corporate and personalresponsibility. Kingspan always aims to adopt and apply bestpractice sustainability principles by ensuringenvironmental, social and economic parameters are consideredin an integrated way in the product and service delivery.


The key philosophical values that Kingspan iscommitted to:

Develop a framework to frequently monitorsustainability performance and actively communicateprogress annually in the form of a publishedsustainability report, by using the Global ReportingInitiative (GRI) guidelines.

Communicate and actively promote awareness andacceptance of this policy

Optimise energy and raw material usage and not to allowor minimise pollution and environmental damage.

Continue to invest in research and development in thearea of maximising insulation values in products, andthe integration of renewable energy products into theKingspan solution.

Continually improve in operational performance by thesetting of long-term objectives and targets in relationto sustainability and review progress regularly.

Fulfil or exceed applicable legal and policy needsrelated to the environmental and social aspects of theorganisation.

To everyone that is working for or on behalf ofKingspan (employees, shareholders, suppliers / sub-contractors and customers).

To ensure employees are given right training insustainability issues and are fully involved in helpingdeliver the Kingspan Group Sustainability Vision &policy


Include the ethos of sustainability into the vision andvalues of the organization.

The articulate of key goals that represent the mostimportant stakeholder claims of Kingspan

Kingspan actively engages staff, customers and localcommunities in consultation in order to recognize materialissues for attention or management. These three groups areconsidered the most valuable stakeholders impacting on, andimpacted by, the business, and their views are sought toreduce business risks & to understand customer needs.Kingspan also cultivates close working relationships withlegal authorities to achieve fulfillment with all regulatoryand legal needs. Through Government consultations withindustry and involvement in trade associations, Kingspanplays an active role.

Employees

A central point of contact has been put in place foremployees within HR, with a more strong complaintssystem, with a pecking order through which to elevatecomplaints and a timescale for response.

An Employee proposition Scheme was put in to encourageideas from the shop floor about product innovation andlean developed techniques.

A Works Committee is in operation, through which staffcan push issues to the Board.


All staffs are represented by a Trade Union, and amember of shop floor staff acts as a contact forputting forward concerns.

Health and safety, housekeeping and productionstatistics are communicated to shop floor staff bynotice boards, in ways to involve employees inachieving better team performance. Employee surveyshave been taken, covering issues such as buildingcomfort, training programmes & employee happiness.

Suppliers

A Supplier ‘Sustainability’ consultation and feedbackexercise has been undertaken to identify potential andimportant issues completed.

Supplier surveys and reviews are conducted withindividual suppliers as issues arise. A QualityAssessment Questionnaire is sent to suppliers on athree-yearly basis.

Customers

In-depth surveys are undertaken intermittently, such asthe 2006 End User survey, which targeted the end usersof products rather than the intermediate customer.

Significant improvements in customer service have beenseen year-on-year from 2005 to 2008, with constantreductions in logged

Customer satisfaction is employed as Key PerformanceIndicators to drive business performance. The CustomerSatisfaction team monitors and records KingspanInsulation Ltd.’s On-Time / In-Full performance acrossall customers by a monthly survey. Results are reportedto senior management.


Regular telephone surveys focus on issues aroundpackaging quality; logistics performance; technicalservices; and interest in additional customer supportfacilities.

One-to-one service review meetings are undertaken withkey customers on a monthly basis (fortnightly for newcustomers).

All calls received from customers are monitored andlogged within a complaints database, along with detailsof responses made to the customer. Feedback is providedto the complainant regarding corrective actions taken.

Complaints are monitored by product type and problemtype, to identify repeat trends and ensure that levelsof complaint are actively decreased in line with keyperformance indicators.

Frequent and proactive consultation is undertaken withcustomers, aiming to deal with issues as they ariserather than waiting for an annual customer survey.

Detailed surveys are initiated where specific problemsarise. For example, a comprehensive Packaging Surveywas undertaken in 2007.


One-to-one service review meetings are undertaken with key customers

The Corporate Governance mechanisms operatingwithin Kingspan

Kingspan has a well-defined and enforced corporate governance whichprovides a structure that, at least in theory, works for the benefit ofeveryone concerned by ensuring that the enterprise adheres to acceptedethical standards and best practices as well as to formal laws. To that end,organizations have been formed at the regional, national, and global levels

The Board

The Board of the Company is responsible for:

The leadership

Strategic direction and overall management of the Group

They set the Company’s strategic aims

Establish the Company’s values and standards

Monitor compliance within a framework of effectivecontrols


The board has eleven directors which five of these directorsare executives, and six of them including the Chairman arethe non-executive directors. Each of the executive directorshas a combination of general business skills/experience inthe construction materials market. The non-executivedirectors represent a diverse business backgroundcomplementing the executive director's skills. All of thedirectors bring an objective judgement to bear on issues ofstrategy, resources and standards of performance.

The directors believe that the Board has the right balanceof skills & are able to provide effective leadership &control to the Group. The Board meets formally nine timesduring the year, as well as informally as and when neededtoo. Attendance at Board and committee meetings is set outin the table below. The Board reserves for itself a formalschedule of matters on which it takes the ultimate decisionsuch as:

Appointment of senior executives and successionplanning

Reviewing management’s corporate and financialperformance

Overall review of the Group’s internal controls.

Adopting the Group’s rolling 5 year strategic plan andthe annual budget

Approving all major capital expenditure and materialcontracts

Acquisitions and disposals of businesses and otherassets


Certain other matters are delegated to the Board committees,the roles and responsibilities of which are set out below.Being part of the performance evaluation process theChairman with the non-executive directors at least once ayear without the executive directors being present this isto review the performance of the Board:

the conduct of Board meetings

and committee meetings,

and the general corporate governance of the Group

ATTENDANCE AT BOARD AND COMMITTEE MEETINGSDURING THE YEAR ENDED 31 DECEMBER 2009

Names Board Acquisition

Audit Nomination

Remuneration

A B A B A B A B A BEugene Murtagh

9 9 3 3

Gene M. Murtagh

9 9 2 2 3 3

Dermot Mulvihill

9 9 2 2

Russell Shiels

9 6

Peter Wilson

9 9

Noel Crowe 9 9Louis Eperjesi

5 4

Brendan Murtagh

9 8

Tony McArdle

9 9 2 2 4 4 3 3

David Byrne 9 9 4 3 3 3 4 4Brian Hill 9 8 2 2 4 4 4 3


Helen Kirkpatrick

9 9 4 4 3 3 4 4

Danny Kitchen

7 6 2 2 4 3 3 2

Eoin McCarthy

3 3

Brian Joyce 1 1

Column A This indicates the number of meetings held duringthe period the director was a member of the Board and/orCommittee

Column B This indicates the number of meetings attendedduring the period the director was a member of the Boardand/or Committee

The Chairman and Chief ExecutiveThere are responsibility set out in formal writing betweenthe non-executive Chairman Eugene Murtagh & the ChiefExecutive Gene M Murtagh. The Chairman’s primaryresponsibility is:

Ensures that all members of the Board, including inparticular the non-executive directors, have anopportunity to contribute effectively.

Responsible for making ensure that there areappropriate and timely communications withshareholders.

To lead the Board.

Responsible for the efficient and effective working ofthe Board


The Board has responsibility for running the Company to theChief Executive & the executive management team. The ChiefExecutive is responsible for:

overall performance of the Group

Is accountable to the Board for all authority sodelegated.

strategic direction

Board balance and independenceThe Board has made the following non-executive directors tobe independent

David Byrne

Brian Hill

Helen Kirkpatrick

Danny Kitchen

Tony McArdle

Tony McArdle was nominated as the senior independentdirector of the Company and he is available to shareholderswho have issues/problems which cannot be put through to theChairman, Chief Executive or Chief Financial Officer.

The directors consider that there is a strong self -dependent representation on the Board and they are committedto refreshing and strengthening the independentrepresentation on the Board on an on-going basis.


Appointments to the BoardAll appointments to the Board are made on the recommendationof the Nomination Committee. In addition the NominationCommittee looks and reviews the various committees and makesrecommendations to the Board on the appointment of thechairman and the membership of each.

Information and professional developmentAll directors are given the right and timely information forBoard and committee meetings, and they are given theopportunity to probe and question the executives and to lookfor further information as they see which are appropriate. &for those who advices the Group (professional advisors) arealways available for consultation with the Board & they alsoattend Board meetings needed.

All of the directors have access to the advice & the serviceof Kingspan Company Secretary who is has responsibility formaking sure that Board procedures are followed correctly.He/she is also responsible for advising the Board, throughthe Chairman, on all governance matters. Individualdirectors can seek independent professional advice at theexpense of the Company in furtherance of their duties as adirector. The Group has arranged appropriate insurance coverin respect of legal action.

Performance evaluationDuring the year the Chairman does a review of theperformance of individual directors. The Senior IndependentDirector by discussions with other directors forms togethera review of the Board, its committees and its corporategovernance against its directors.


Re-election of directorsThe Company’s Articles of Association provide that newlyappointed directors are subject to election at the AGM(Annual General Meeting) following their appointments.Taking away any such newly appointed directors, one third ofthe Board is subject to re-election at each Annual GeneralMeeting.

Non-executive directors are appointed to the Board for aninitial term of three years, renewable with the Board’sagreement, but subject to re-election by the shareholders onthe normal rotation basis. Any non-executive director whohas served more than nine years from the time of their firstelection is subject to annual re-election thereafter.

Board CommitteesThe Board has put together the following committees

Acquisitions

Audit

Nominations

Remuneration

All of committees of the Board have written terms ofreference setting out their authorities and duties .Thechairman and members of each committee are set out in theBoard section.


Acquisitions CommitteeThe Acquisitions Committee has been placed by the Board toconsider and appraise all acquisition proposals made by theGroup within its authorized limits, and to approve:

Investments,

Joint ventures

Capital expenditure

These limits are considered to promote the Group strategy.

Audit CommitteeAudit Committee keeps an eye on the integrity of theCompany's financial statements, and the effectiveness of theCompany’s internal financial controls.

All of the members of the Audit Committee bring significantfinancial and accounting experience to the committee’s work,


and in particular the Board considers that the chairman ofthe Audit Committee, Helen Kirkpatrick has appropriaterecent and relevant financial experience.

Nominations CommitteeThe Nominations Committee helps out the Board by making surethat the arrangement of the Board and its committees isright for the needs of the Group.

They meet at least once a year, if needed, they consider theBoard’s membership, & identify any additional skills orexperience which will benefit to the Board’s performance andrecommend appointments or where necessary removals from theBoard.

Remuneration CommitteeThe Remuneration Committee are responsible for settingremuneration for all executive directors and for theChairman, including pension contributions and anycompensation payments.

The committee also keeps an eye on the level and structureof remuneration for senior management. Twice a year,following publication of the annual and half-year results,the Chief Executive and the Finance Director meet withinstitutional investors during a formal results road show.


Internal control and risk management systemsInternal control systems are usually identified in theReport of the Audit Committee. The main features of theGroup’s internal control and risk management systems arerelated specifically to the Group’s financial reporting andaccounts consolidation process are:

The reconciliation of reporting packages to monthlymanagement packs as part of the audit process and aspart of management review

The validation of consolidation journals are part ofthe management review process and as an integralcomponent of the year-end audit process

The review and analysis of results by the Group FinanceDirector and the Auditors with the management of eachdivision

To review reporting packages for each entity as beingpart of the year-end audit process

The review of audit management letters by the GroupFinance Director Head of Internal Audit and the AuditCommittee & the follow up of any critical managementletter points to ensure issues highlighted areaddressed.


Communication with shareholdersThe Company maintains a regular and responsible dialoguewith shareholders.

These are achieved through:

Meetings with institutional investors

Presentations to brokers

Analysts

Making relevant information available on the Company’swebsite www.kingspan.com in a timely fashion.

The Company always encourages communication with allshareholders, and invites their participation at AnnualGeneral Meetings (AGM). All shareholders who show up at theCompany’s Annual General Meeting (AGM) are given theopportunity to question the Chairman and other members ofthe Board, including the chairmen of the committees, of anyfield of the Group’s business.

Internal and external environments Kingspanoperates/indication on the impact that themajor components in its environments are

having on Kingspan.

Internal Analysis

The Board of Directors has overall responsibility for theGroup’s system of internal control and has delegatedresponsibility for the running of this system to executivemanagement.


This delegation ensures the embedding of the system ofinternal control through the Group’s operations, this makesthat the organization is capable of responding quickly toevolving business risks, and that significant internalcontrol issues they should arise they are reported quicklyto appropriate levels of management. Such a system of internal control by its nature is designedto manage rather than eliminate the risk of failure toachieve business objectives, & can provide reasonable, butnot absolute, assurance against material misstatement orloss.

The key elements of the Group’s system of internal controlinclude the following:

clearly defined and appropriate levels of authorizationfor all transactions;

the Audit Committee and the internal audit function;

the chairman of the Audit Committee reports to theBoard on significant issues considered by thecommittee, and the minutes of its meetings arecirculated to all directors;

Systematic monitoring and assessment of risk areasthrough management and Board reviews.

a clearly defined organization structure with formallines of authority, accountability and responsibility

a formal schedule of matters specifically reserved fordecision by the Board;

regular assessment of major business, investment andfinancing risks;


a comprehensive annual budgeting process and a reviewby the Board of actual performance compared with budgeton a monthly basis;

Funding and liquidity risks The Group operates a cautious approach to liquidity management using a mixture of long-term debt together with short-term debt, cash and cash equivalents, to meet its liabilities when due. This is in addition to the Group’s high level of free-cash flow generation.

The Group’s core funding is provided by a private placing of$200mn converted into €151mn at the time of the placing. The Directors confirm that they have conducted an annual review of theeffectiveness of the system of internal control up to and including the dateof approval of the financial statements. The process used by the Board forthis review includes:

Discussions with management on the implementation ofstrategies on any internal control & risk areasidentified;

Consideration by the Board on the impact of relevantlegislation on the Group. The approach by the Board isproactive in identifying possible weaknesses andobtaining the relevant degree of assurance on specificareas of internal control and not merely reporting byexception.

The review by the Audit Committee of the external andinternal auditors’ work plans, reports and internalcontrol recommendations;

review by the Board and Audit Committee of the specificidentified risk areas;


consideration of reports from management, internal andexternal auditors on the system of internal control andon material control weaknesses

Customer credit risk As part of the overall service package Kingspan providescredit to customers & as a result there is an associatedrisk that the customer may not be able to pay outstandingbalances. Each of the business units has establishedprocedures and credit control policies around managing itbrings in & takes action where needed. Trade receivables arealso managed by having credit insurance policies, to theextent that these are available, and credit limits.

All high outstanding and overdue balances together withsignificant potential exposures are reviewed regularly andconcerns are discussed at monthly meetings at which groupexecutive directors are present. Control systems are inplace to ensure that authorization requests are supportedwith appropriate and sufficient documentation and areapproved at the right levels in the organization.

Transport Kingspan Insulation rural location has historically madetransport a challenging area to manage, but one in which thecompany strives for best practice both for staff travel andhaulage. Have done alot of trials have been undertaken toreduce dependency on private cars for staff travel, withinitiatives ongoing to identify an effective programme ofoptions and incentives. Due to the limitations of rail andwater transport for accessing the sites, all freighttransported to and from Kingspan Insulation is delivered byroad vehicle. The company recognizes that transportation ofconstituent materials and products to and from itsmanufacturing sites presents significant impacts to theenvironment at large, and specifically to local communities.The company is committed to minimizing these impacts.


Research & development and quality control A key risk to Kingspan’s business and its reputation is thepotential for functional failure of products when put touse, thereby leading to warranty costs and potentialreputational damage. Quality control procedures in relationto both raw material inputs and Kingspan’s own manufacturingprocesses, therefore they are, an essential part of thequality control before a Kingspan product is delivered tothe customer. With the support of external audits, quality control systemsare reviewed and improved on an ongoing basis to ensure eachbusiness unit is addressing the whole control environmentaround product and process development and the formalsigning off from development to manufacturing. The majorityof new products have also to go through a certificationprocess which is undertaken by a recognized and reputableauthority like in the UK it is Building ResearchEstablishment (BRE) before it is brought to the market. Toensure that Kingspan meets the highest standards ISO is usedacross by the Group.

Expansion and acquisition A key figure of the Group’s strategy is to grow the businessthrough both broadening its product offering and geographicexpansion. This requires management to identify suitableinvestment opportunities both in the form of capitalinvestment projects and acquisitions. Such expansion has itsassociated risks in terms of valuation, timing,integration / set-up and management resources. All ofinvestment proposals undergo a rigorous internal evaluationprocess incorporating a detailed market / competitiveanalysis, strategic rationale, external due diligence andpay-back valuation which targets double-digit pre-taxreturns by year two, in accordance with set criteria forapproving investments.


Information technology / business continuity Kingspan uses a range of computer systems across itsbusiness units for efficient processing of orders, controlprocedures and financial management. These systems arealways reviewed and updated accordingly to meet the growingneeds of the Group. Business continuity planning isregularly being assessed and tested across the Group andaddresses issues like personnel, manufacturing and disastermanagement. The Group is currently moving some of itssimilar business units to the same core operating platformin order to be able to develop an in-house expertise in thissystem, and to generate scalability and mobility

Financial Risk Management In the normal course of business Kingspan Group hasexposures to foreign currency, interest rate and creditrisks. The Group’s focus is to understand these risks and toput in place policies that minimize the economic impact ofan adverse event on the Group’s performance.

External AnalysisInterest rate risk Kingspan group puts a policy of ensuring that an appropriateproportion of its exposure to changes in interest rates onborrowings is covered by effective conversion to a fixedrate. Interest rate swaps are entered into to achieve anappropriate mix of fixed and floating exposure that isconsistent with the Group’s policy.


Kingspan Insulated Panels

Other Risks & Uncertainties There are alot of other risks and uncertainties that canimpact the performance of the Group, many of which arebeyond the control of Kingspan and its Board. The Group’sbusinesses closely monitor market trends and risks on anongoing basis and such trends and risks are the focus ofmonthly management meetings where the business unit’sperformance is assessed versus budget, forecast and prioryear.

Such meetings are circled around the other differentlocations of the business unit and at least one executiveboard director is present. An annual assessment of trendsand risks is also an integral part of the business unit’sannual review of its strategic plan and budget, which aresubmitted to the Group Board for consideration and approval.


Market conditions Kingspan’s products are targeted to both the residential andnon-residential including:

Retail,

Commercial,

Public sector

High-rise offices

As a result demand is dependent on activity levels in theserespective segments, which vary by geographic market and aresubject to the usual drivers of construction activity (i.e.general economic conditions, interest rates,business/consumer confidence levels, unemployment, andpopulation growth). While construction markets areinherently cyclical, changing building and environmentalregulations continue to act as an underlying positivestructural trend for demand for many of the Group’sproducts.

Over the past 18 months the Group has experienced weakeningof demand in several markets, notably in Ireland and the UK.This weakening has been particularly acute in theresidential and commercial sectors, and this has had animpact on the results of the Group for the current year.Further weakening of the key markets for the Group is likelyin the current year, and consequently this weakness islikely to have an adverse impact on the results of the Groupin the near future.

Regulation Following the expansion of Kingspan over the last decade theGroup has manufacturing and distribution operations in over


32 countries, each of then having its own statutes, taxes,regulations and laws. Each business unit closely monitorsregulations across its markets to ensure any adverse impactsare minimized.

However, certain changes are positive for the Group, inparticular those pertaining to building and environmentregulations which are becoming ever more stringent andharmonized across countries, especially in Europe, and as aresult are increasing the demand for the Group’s products.More recently, authorities in several countries haveintroduced grant aid for many of the Group’s sustainable andenergy efficient products such as insulation and evacuatedsolar tubes. As the introduction of such assistance has beenpositive for some Kingspan businesses, any future withdrawalof such assistance may have a negative effect

Input prices and availability The Group’s operating performance is impacted by the pricingand availability of its key inputs, which include steel and chemicals. Pricing of such goods can be quite volatile at times due to the respective industries’ limited ability to adjust supply to changes in demand, capacity and input costs.

The Group looks to minimize the adverse effect of such movements through strong long-term relationships with suppliers, economies of purchasing, multiple suppliers and inventory management.


There is a further risk to the Group given recent consolidation in many supplier markets, particularly steel, whereby the number of supply options has shrunk, and the Group is continually exploring ways of mitigating this risk.

Competitive pressures Kingspan continually faces competition in each of themarkets in which it has a presence. The competitiveenvironment in any one market is a function of a number offactors including the number of competitors, productioncapacity, and the demand characteristics of that market, theease of imports from third countries and the availability ofsubstitute products. While such competitive forces can impact profitability inthe short-term, each of Kingspan’s operations looks tooffset such adverse effects by:

Ensuring a low cost manufacturing base througheconomies of scale, investment in modern and efficientplant and a programme of continuous process improvement

A permanent emphasis on product development whichallows the Group’s companies to be leading edgeproviders of innovative building solutions and,therefore, helps to differentiate itself fromcompetitorsProviding a best in class service to customers byoffering expert technical support, short delivery timesand products that come with a guaranteed performance.In recent months, competitive pressure has intensifieddue to contraction in the overall market size.

This has lead in some cases to lower margins, although theGroup’s focus is to improve and differentiate the productfurther. Should such pressures continue it may have afurther adverse impact on margins? Furthermore, due tocapacity restrictions in some raw material markets, inputprices are subject to upward pressures.


Should input costs rise, competitive pressures in the marketplace may make it difficult to pass on some or all of theseincreases, thereby adversely affecting margins.

Foreign exchange risk There are three types of foreign exchange risks to which theGroup is exposed

Transactional - where a business unit has input costsor sales in currency other than its local currency

Translational - where profits are earned in a currencyother than Euro, which is the reporting currency forthe Group

Balance Sheet - where the Group has net assets in non-Euro currencies. The first two affect the Earnings ofthe Group and the latter goes directly to Reserves andaffects the Net Assets position.

Transactional - transaction exposures are internally hedgedas far as possible and to the extent that they are not, suchmaterial residual exposures are hedged on a rolling 12 monthbasis. Based on current cash flow projections for theexisting businesses to 31 December 2010, it is estimatedthat the Group will have surplus sterling of approximately£44mn which will be required to be converted to Euro duringthe year.

Taxation Kingspan carries on significant levels of internationaltrade and finance between members of the Group. The basis ofthis inter-group trade/finance is at arm’s length, anddocumented by agreement.

Such agreements are open to challenge by the tax authoritiesin each member company’s jurisdiction, and the Group


maintains an open dialogue with revenue authorities invarious jurisdictions.

An adverse view on these arrangements could give rise toincreased taxation payments. Foreign exchange rates haverecently undergone a period of exceptional volatility due toeconomic situations of individual countries, the currentglobal economic downturn, and political considerations.

S.W.O.T Analysis for KingspanS.W.O.T has enabled Kingspan Insulation to easily identify key risks,impacts and opportunities with respect to sustainability. The nature of theappraisal diagram is such that areas which present particular challengesare clearly highlighted in blue, red, whilst areas of stronger performanceare illustrated in green and purple.


STRENGHTS: Mission clarity Financial risk

management Research &

Development and quality control

Expansion and acquisition

Employment and skills

Economic viability Experience Detailed Plans

Mission Statement Right products,

Quality& Reliabilityy

Superiors products

WEAKNESSES: Transport Social

responsibilities Energy Water uses Warranty costs and

potential reputationaldamage potential for functional failure of products when put to use

Warranty costs and potential reputationaldamage potential for functional failure of products when put to use

Pricing of goods can be quite volatile

OPPORTUNITY:

Market condition Regulation New technology Global Market Could develop new

products New markets Broadening its product

offering and geographic expansion

At Pembridge there

THREATS: Funding and liquidity

risks Interest rate risks Input prices and

availability In the normal course

of business Kingspan Group has exposures toforeign currency, interest rate and Credit risks

Environmental effects

INTERNAL

EXTE

RNAL

Analysis of S.W.O.T

All the information gathered from the internal and external analysis showsus that kingpan is in a strong enough position to be a major competitor inits line of business.

INTERNALSTRENGTHS: Through the years Kingspan has focused onidentifying and improving its main strengths, some of itsmain strengths include: Employment & Skills: Kingspan recognises that its employeesare a valuable resource and because of this Kingspan hasdeveloped a number of employee policies and practices toensure that employees are appropriately trained so it canget the most out of its employee’s skills and abilities.

Kingpan also operates using an equal opportunities policyand anti-discrimination policy are in place and As far aspossible; Kingspan tries to recruit its staff from the localarea through advertisements in local media and use of localjob centres or Manpower offices.

Mission Clarity: Kingspan is very clear on their mainobjective of to be a global leader in sustainable businessand establish a leading position in providing ethical,renewable and affordable best practice solutions for theconstruction sector and to archive this, Kingspan Optimisesenergy and raw material usage and prevent or minimisepollution and environmental damage. They also continue toinvest in research and development in order to provide themost cost effective and energy efficient solutions tocustomers.

WEAKNESSES: Through the years kingpan has tried to identifyand correct its main weaknesses, some of these weaknessesinclude:


Transport: Kingspan Insulation recognises its dependency onroad transport for freight and staff movements as an impactarea which presents ongoing. Challenges and since 2004; ithas been trying every year to correct this although thecompany’s rural manufacturing locations limit the optionsfor alternative transportation methods other than roadtransport.

Water: Dependency on mains water supplies is an ongoingchallenge for Kingspan. During 2007, the use of rainwaterharvesting techniques was explored to supply water to a newwarehouse building in Pembridge.

These plans were abandoned at that time due to the capitalexpenditure implications of the project. But they plan toreview the project in the future.

Analysis of S.W.O.T

ENTERNALOPPORTUNIES: Through research and development Kingspan hasmade it one of their top priorities to identify and exploreany opportunities in the market and benefit from it. Some ofkingspans most recent opportunities are:

New Technology: In 2010 kingspan re-launch its rain water harvesting technology. They estimated that the costs incurred from rain water harvesting would pay for it in as little as 2 years. Kingspan has joined forces with a primaryschool in Dublin to help them become one of the greenest in the country.

Expanding to new markets: Kingspan is known globally forinnovation design, Quality & technical experience and thisis the reason why its continued to expand its manufacturingand distribution throught the world. This along with its 40


years of experience is the reason why it’s a majorcompetitor in most of the continents.

Threats: Kingspan has many competitors from markets of allover the world for example main competitors are CRHInsulation Leanort British Steal Hoogovens are consideredmajor threats to Kingspan


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Kingspan project 2

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