Wienerberger Ag · VIE:WIE
Wienerberger — H1 2021 Earnings Presentation
40 slides from Wienerberger's earnings presentation, August 2021
Slide 1: Wienerberger H1 Results
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Slide 2: Cautionary note regarding forward-looking statements
Disclaimer Cautionary note regarding forward-looking statements › The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctne
Slide 3: Wienerberger's growth path continues to deliver…
Wienerberger’s growth path continues to deliver… Innovation & Operational M&A and Portfolio Digitalization Excellence Optimization Organic growth in all key Self-help program well on Further growth through markets by further focusing track including Operational M&A activities in all our on innovatio
Slide 4: … and is well on track to meet its ESG targets 2023
… and is well on track to meet its ESG targets 2023 Decarbonization Circular Economy Biodiversity Promising decrease in CO2 Ongoing initiatives and R&D Implementation of biodiversity emissions across the entire projects such as EcoCorr (100% projects well on track with portfolio well in plan across
Slide 5: Market environment H1
ironment H1 Market env ta o Dp o 2 - o ¢ a 3
Slide 6: New build market moving towards more robust levels in all our key markets
Market environment New build market moving towards more robust levels in all our key markets › In many markets, we saw an increase in building permits in the first half of the year, also supporting in-house solutions, although not everywhere back at pre-crisis levels Western Europe Market rebound in
Slide 7: Renovation activities overall at high level in our key markets
Market environment Renovation activities overall at high level in our key markets › Strong renovation activity in all our key markets leads to high demand and strong utilization levels, especially in roofing segment › We see impacts of labour shortages which are expected to persist in the market thr
Slide 8: Infrastructure segment records strong demand
Market environment Infrastructure segment records strong demand › Performance was characterized by exceptionally high volumes in all markets, especially in the second quarter of 2021. › Overall market environment impacted by raw material price increases and limited availability. Western Europe Stron
Slide 9: Strong demand levels in all segments in North America
Market environment Strong demand levels in all segments in North America › Strong demand in new build which was shaped by a surge in housing starts, reaching its highest level since 15 years in March in the U.S. › High demand for infrastructure solutions supported by public programs led to high volu
Slide 10: Wienerberger performance and focus areas
Wienerberger performance and focus areas Innovative Pragma Solutions for Rainwater Management © Pipelife
Slide 11: Strong H1 2021 performance due to focus on growth
H1 2021 – Performance Overview Strong H1 2021 performance due to focus on growth € 1,867.5 mn › Strongest half-year results despite partly muted Revenues developments in core markets and slow returns to H1 2021 € 1,867.5 mn pre-crisis levels H1 2019 € 1,736.4 mn H1 2020 › Outstanding developments in
Slide 12: Strong results in all three business units confirm resilience of business model
H1 2021 – Business Unit Overview Strong results in all three business units confirm resilience of business model Building Solutions Piping Solutions North America in € mn H1 2021 H1 2020 Chg. in % in € mn H1 2021 H1 2020 Chg. in % in € mn H1 2021 H1 2020 Chg. in % External revenues 1,115.4 1,014.4 1
Slide 13: Strategic drivers for our resilient business model
Investments in Growth Strategic drivers for our resilient business model Wienerberger continues to focus on growth by investing in the future Operational Innovation & Sustainability Excellence Digitalization & ESG › Operational excellence and › Transform into a full system › Roll out of existing tec
Slide 14: New technologies contributing to our ESG targets
Investments in Innovation & Digitalization New technologies contributing to our ESG targets New technology Innovative solutions for heat recovery in Virtual Labs › DryFiciency addresses the challenge of › Electron microscopes analyze brick the huge quantities of unused waste microstructures in order
Slide 15: Enhanced plants and improved network in the Nordics…
Investments in Plant Optimization Enhanced plants and improved network in the Nordics… › Ljung in Sweden as largest flagship 1 pipe plant in the Nordics by mid-2023 › Triple production capacity and accommodate increasing need for piping systems in urban areas 2 1 › Brand-new specialty production sit
Slide 16: … to strengthen the market position of Wienerberger Piping Solutions in the Nordic market
… to strengthen the market position of Wienerberger Piping Solutions in the Nordic market Stormwater Enhanced portfolio Digital solutions management Wienerberger enhanced its portfolio to Digitally enhanced solutions (e.g. Smart Stormwater management systems meet rising demand of large urban probe o
Slide 17: Driving value creation through selective M&A
Investment in M&A Driving value creation through selective M&A Acquisition of Meridian brick 1) 1 Potential to further grow and 2 strengthen our position in the North American brick markets 1 Acquisition of FloPlast and Cork Plastics 2) Build on strong positions in WBS and WPS 2 with adjacent soluti
Slide 18: A perfect strategic fit: "From Rain to Drain"
Acquisition of FloPlast and Cork Plastics A perfect strategic fit: “From Rain to Drain” › FloPlast and Cork Plastics have a strong foothold in the UK and Ireland with a well established product portfolio › More than 90% of revenue in the non-cyclical renovation segment › Large exposure to the fast g
Slide 19: Highly value generating acquisition enlarges our footprint in UK and Ireland
Acquisition of FloPlast and Cork Plastics Highly value generating acquisition enlarges our footprint in UK and Ireland REVENUES € ~100 mn in 2021 (combined sales of FloPlast and Cork Plastics) Clearly margin accretive (>20% EBITDA margin) PROFITABILITY AND SYNERGIES Attractive synergies and cross-se
Slide 20: Acquisition is fully in line with Wienerberger's growth strategy …
Acquisition of FloPlast and Cork Plastics Acquisition is fully in line with Wienerberger’s growth strategy … Organic growth through Self-help through Inorganic growth through All activities are subject to Innovation & clear ESG objectives Operational M&A and Portfolio Digitalization Excellence Optim
Slide 21: … and supports the right solution to face the challenges of current megatrends…
Acquisition of FloPlast and Cork Plastics … and supports the right solution to face the challenges of current megatrends… Impact of Impact of Impact of climate change population growth rapid urbanization Climate change creates more Population growth increases Urbanization puts increased load on unpr
Slide 22: … as well as our strong ESG strategy and commitment
Acquisition of FloPlast and Cork Plastics … as well as our strong ESG strategy and commitment … growing and developing in a way that is fully in line with our ambitious ESG strategy … providing solutions for renovation and new built to support the net zero GHG emissions goal in line with the EU Gree
Slide 23: We improve people's quality of life
Our vision We improve people’s quality of life By consequently following our strategic pillars and focusing on the right investments… … we actively take responsibility for our environment and society and ensure that 1 future generations have the same opportunities as we have today … we build a platf
Slide 24: Financial Highlights H1 2021
Financial Highlights H1 2021 Kinderhospiz Balthasar (c) Wienerberger & Frank Rechtmann, Bildagentur Rundblick
Slide 25: Record results and improving profitability; solid balance sheet
Financial Highlights Record results and improving profitability; solid balance sheet lays the ground for further growth Revenues EBITDA LFL 1) € 1,867.5 mn € 308.4 mn (H1 2020: € 1,641.5 mn | ∆: 14%) (H1 2020: € 254.1 mn | ∆: 21%) Net Debt / EBITDA ROCE 1.6x 10.9% (H1 2020: 1.6x) (H1 2020: 7.1% | ∆:
Slide 26: Excellent operative performance translates to strong profit generation
Income Statement Excellent operative performance translates to strong profit generation in € mn 1-6/2021 1-6/2020 Chg. in % Revenues 1,867.5 1,641.5 14 EBITDA LFL 308.4 254.1 21 EBITDA 307.0 261.9 17 Operating EBIT 181.3 136.5 33 Impairment charges to assets 0.0 -23.3 >100 Impairment charges to good
Slide 27: Strong profitability above pre-Covid levels
EBITDA Strong profitability above pre-Covid levels EBITDA Development in € mn EBITDA adjustments in € mn 1-6/2021 1-6/2020 Reported LFL EBITDA reported 307.0 261.9 +17% +21% FX 4.3 - 307 308 Consolidation -0.9 -1.7 262 254 Sale of assets 1) -5.1 -10.2 Structural adjustments 2) 3.1 4.2 Total adjustme
Slide 28: Right measures are set to safeguard our margins
Focus Topic – Cost Management Right measures are set to safeguard our margins Overall rise in cost inflation is also impacting our business but we are well-positioned and we took the right measures > Active centralized procurement, which enabled us to counteract pro-active and fast > Optimized suppl
Slide 29: Self-help program already delivered € 20 mn in H1 2021
Focus Topic – Self-help Self-help program already delivered € 20 mn in H1 2021 New Self-help program already delivered EBITDA contribution from Self-help in € mn € 20 mn EBITDA contribution in H1 2021 Target for FY 2021: EBITDA contribution of € 40 mn 20 › Major drivers for H1 achievement have been
Slide 30: Clear capital allocation guidelines and a strong operating model support long-term growth ambitions
Clear capital allocation guidelines and a strong operating model support long-term growth ambitions Strong operating model and sound balance sheet management forms the base Smart CAPEX spending Strong operational Clear target for to foster further growth performance and financial discipline: cash fl
Slide 31: Strong free cashflow generation provides the basis for further growth investments
Cash Flow Statement Strong free cashflow generation provides the basis for further growth investments in € mn 1-6/2021 1-6/2020 Chg. in € mn Chg. in % 1-12/2020 Gross cash flow 236.9 187.8 49.1 26 440.6 Change in working capital -146.2 -153.2 7.0 5 64.1 Maintenance capex -43.3 -46.1 2.8 6 -125.9 Div
Slide 32: Investments, hybrid buyback and dividend payments were covered by strong cash flow generation
Net Debt Investments, hybrid buyback and dividend payments were covered by strong cash flow generation Net debt development in € mn 1 000 +2% 48 800 490 366 600 58 928 224 946 400 71 200 0 Net Debt Gross cash flow Working capital Investments 1) Sale of assets Buybacks and Leasing & Other Net Debt 30
Slide 33: Our focus on long-term value creation is reflected in strong performance and balance sheet
Balance Sheet Our focus on long-term value creation is reflected in strong performance and balance sheet ratios in € mn 30.06.2021 30.06.2020 Chg. in % 31.12.2020 ROCE 10.9% 7.1% 3.8pt 8.9% Equity 1) 1,834.7 1,875.6 -2 1,749.0 Equity ratio 42.3% 43.0% - 40.4% Net debt 946.1 928.2 2 882.1 Net debt /
Slide 34: Balanced maturity profile and convenient liquidity position enables financial flexibility
Maturity Profile Balanced maturity profile and convenient liquidity position enables financial flexibility Maturity profile as of June 30, 2021 in € mn Σ: € 1,216 mn1) 500 400 300 200 100 0 2021 2022 2023 2024 2025 after 2025 › Cash and cash equivalents as of June 30, 2021: € 450 mn › Available RCF
Slide 35: Our leverage target comfortably accommodates our announced M&A transactions
Leverage Our leverage target comfortably accommodates our announced M&A transactions 2.5x leverage target ~-0.1x ~0.7x ~-0.2x ~1.9x 1.6x Net debt / EBITDA M&A Disposal of Operational Net debt / EBITDA ratio 06/2021 FloPlast/Cork P., treasury shares deleverage ratio 12/2021E Meridian1) > Inorganic gr
Slide 36: Outlook 2021
Haus am Buddenturm (c) Marc Hehn Wesselkvartalet Marziale © Wienerberger Outlook 2021
Slide 37: Continuous solid developments expected
Outlook 2021 – Wienerberger Estimates Continuous solid developments expected Market growth (>2%) Stable development Market decline (<-2%) Western Central & Nordics North America Europe Eastern Europe New build Renovation Infrastructure 37
Slide 38: Key market developments impacting our operations
Outlook 2021 Key market developments impacting our operations Shortages of various raw materials and The tight situation on the markets for various building price increases expected to continue in the materials is successfully tackled thanks to great second half procurement management RAW MATERIAL A
Slide 39: FY 2021 Guidance
Outlook 2021 FY 2021 Guidance › Market developments according to our current estimates ASSUMPTIONS › No further lockdowns assumed › Headwinds from rising plastics prices are not materializing as initially expected › Overall goal is to fully cover cost inflation in 2021; COSTS & PRICES potential risk
Slide 40: wienerberger
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