AGM Statement

Kingspan Group PLC
24 May 2001



Kingspan Group plc

CHAIRMAN'S STATEMENT - A.G.M. 2001


24th May, 2001



Kingspan is the fastest growing European building materials company in terms
of total shareholder return. Over the 10 years from 1990 Kingspan has
delivered 32% per annum compound average growth rate in Total Shareholder
Returns. EPS has grown by a compound annual rate of 27%, sales by 26% and
EBITDA, the critical cash generation measure, by 36% per annum. The Group has
a market capitalisation of Euro 650 million, which has grown from a figure of
Euro 30 million at the time of the IPO in 1989. Since the IPO Kingspan has
raised Euro 24 million in equity. The company has invested Euro 300 million in
acquisitions since 1996, and spent Euro 100 million on capital expenditure in
the same period. Kingspan now has operations in 8 countries including most
recently the US. Prudent financial management and planning has fostered this
growth in shareholder value.


The Kingspan strategy that continues to deliver these returns to shareholders
has been built around the identification of rapidly growing market segments
and we have painstakingly built up a well- balanced portfolio of products to
service these segments. These products are designed to address the functional
needs of building owners and occupiers by reducing capital costs of
construction, improving the working environment, reducing running costs of
buildings, giving flexibility in layout, and significantly reducing
construction time. We have concentrated on products, which are highly
specified by architects and structural engineers and we have looked for and
achieved leadership positions in these products on a selective regional basis.
We also operate in a market that is increasingly aware of the more stringent
building and environmental issues and aware of the shortage of traditional
construction and wet trade skills. Kingspan is proactive in partnering with
building owners and contractors in addressing these issues.


In December 2000 the Group announced the acquisition of Tate Global Inc., a US
based manufacturer of raised access floors and completion took place in
January this year. The core business for Tate in the US is the office market.
So far the downturn in the US economy has had only marginal impact on this
core sector. Tate has launched a campaign to increase the penetration of
raised access floors in the US office market from its present very low level
of 10%. There are strong arguments in favour of the raised access floor
concept and the response to the campaign is very positive. This argument has
already been won in the UK where penetration is at about 80%. Kingspan is the
largest supplier of raised access floors in the world and will be a
significant beneficiary as the US market is converted. In addition the Group
has identified significant cost savings in Tate which should increase
profitability and operating margins in the last quarter of 2001 and through
2002. Trading in the first half of this year in Tate is satisfactory and
operating profits are in line with expectations but conditions in the US
market remain a little turbulent. While there are various influences affecting
different sectors of the market, overall given the global aspect of the
business we are optimistic about the medium term outlook.


The Group is planning the installation of two composite panel lines in
mainland Europe. Phase one, of what is expected to be a total investment of
Euro 40 million, is expected to be completed by the second quarter of 2002
with the commissioning of the first of these lines. The Group continues to
develop new products and improve the performance of existing products and
maintains its position as the leader in providing product solutions that add
real value for our customers.


Elsewhere other markets remain buoyant. The year has started well with order
intake across the product range in Ireland, Britain, the Benelux region,
Germany and Central Europe ahead of target. Overall performance is on plan and
I expect the outcome for the first six months to be significantly ahead of the
same period last year. As I said in my Statement in the Annual Report our
emphasis for this year is on maximising the returns on capital expenditure,
developing a range of new products and on settling the Tate acquisition into
the Group.





Ends.                                             Thursday 24th May 2001

For reference:  Tom Byrne

Murray Consultants Ltd

Tel: [phone]