Wienerberger AG · VIE:WIE

Wienerberger — FY2016 Earnings Presentation

41 slides from Wienerberger's earnings presentation, Oct 5, 2017

  1. Slide 1: Investor and Analyst Presentation Results 2016

    Investor and Analyst Presentation Results 2016

  2. Slide 2: Disclaimer

    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 correctn

  3. Slide 3: 2016 successfully completed

    2016 successfully completed  Net profit increased to € 82 mn (2015: € 37 mn)  Organic growth of EBITDA by 9%  Free cash flow almost doubled to € 247 mn (2015: € 135 mn) Dividend increase by 35% to € 0.27 per share 3

  4. Slide 4: 2016 at a glance

    2016 at a glance ► Revenues: € 2,973.8 mn (0% | LFL: +1%)  Higher volumes and improvement of average prices  Positive contribution from consolidation offset by negative foreign exchange effects of € 60.9 mn ► EBITDA: € 404.3 mn (+9% │ LFL: +9%)  FX-effect: € -12.8 mn  Contribution from consolida

  5. Slide 5: Business development in our Divisions

    Business development in our Divisions ► Clay Building Materials Europe  Higher volumes and slightly improved average prices compensate significant negative FX-effect  Positive market environment in Eastern Europe and regional differences in Western Europe ► Pipes & Pavers Europe  Revenue and earn

  6. Slide 6: Organic improvement of revenues and earnings

    Organic improvement of revenues and earnings Revenues: EBITDA: € 2,973.8 mn € 404.3 mn (2015: € 2,972.4 mn | 0%) (2015: € 369.7 mn | +9%) LFL 1): +1% LFL 2): +9% Net result 3): Free cash flow: € 82.0 mn € 246.5 mn (2015: € 36.5 mn | >100%) (2015: € 135.1 mn | +82%) 1) Adjusted for effects from conso

  7. Slide 7: Growth in Q4 2016

    Growth in Q4 2016 ► Development of revenues and earnings  External revenues: € 693.2 mn (+1% │ LFL: +2%)  EBITDA: € 101.7 mn (+33% │ LFL: +7%) ► Clay Building Materials Europe  Positive business development in Eastern Europe  Stabilization in B │ Sound demand in F, NL and UK ► Pipes & Pavers Eur

  8. Slide 8: Successful implementation of our clear strategy

    Successful implementation of our clear strategy  OPERATIONAL ORGANIC GROWTH GROWTH PROJECTS EXCELLENCE  Digitalization  Continuous cost and  Selective bolt-on  Innovative products, process optimization projects in core markets services and solutions  Portfolio optimization 8

  9. Slide 9: Results 2016

    hs Wienerberger Results 2016

  10. Slide 10: Stable development of revenues

    Stable development of revenues 3,100 +1% +1% +1% 3,000 2,972.4 2,973.8 -2% 2,900 in € mn 2,800 2,700 2,600 2,500 Revenue 2015 Sales volume Sales price Consolidation FX-effect Revenue 2016 Note: Rounding differences may arise from automatic processing of data 10

  11. Slide 11: Organic EBITDA growth of 9%

    Organic EBITDA growth of 9 % 420 410 404.3 400 +12.8 395.1 390 -17.9 1) 380 -2.9 -1.0 in € mn 369.7 370 +17.5 363.9 360 350 -23.3 340 330 320 EBITDA 2015 Sale of Portfolio EBITDA 2015 EBITDA 2016 Sale of Portfolio Consolidation FX-effect EBITDA 2016 reported non-core assets optimization basis report

  12. Slide 12: Income statement 2016

    Income statement 2016 in € mn 2015 2016 Chg. in % Revenue 2,972.4 2,973.8 0 EBITDA 369.7 404.3 +9 EBITDA margin 12.4% 13.6% Depreciation -202.1 -206.6 -2 Operating EBIT 1) 167.6 197.7 +18 Operating EBIT margin 5.6% 6.6% Impairment / Reversal of impairment charges to assets -4.5 -0.2 +95 Impairment c

  13. Slide 13: Net profit more than doubled

    Net profit more than doubled in € mn 2015 2016 Chg. in % EBIT 163.1 190.6 +17 Income from investments in associates 4.0 6.7 +66 Net interest result -42.3 -34.4 +19 Other financial result -17.8 -4.3 +76 Financial result -56.1 -32.1 -43 Profit before tax 107.0 158.5 +48 Income taxes -37.2 -43.2 -16 Pr

  14. Slide 14: Completion of sales program

    Completion of sales program ► Between 2012 and 2016 Wienerberger sold non-operating assets worth roughly € 93 mn ► Cash inflow 2016: € 28.0 mn (2015: € 28.2 mn) ► EBITDA-contribution 2016: € 17.9 mn (2015: € 23.3 mn) ► Remaining non-operating assets will be disposed of in the course of an ongoing an

  15. Slide 15: Free cash flow almost doubled

    Free cash flow almost doubled in € mn 2015 2016 Chg. in € mn Chg. in % Gross cash flow 294.5 317.9 +23.4 +8 Change in Working Capital 1) -34.2 +15.9 +50.0 >100 Normal capex -137.7 -137.3 +0.4 0 Divestments and other +12.5 +50.0 +37.5 >100 Free cash flow 135.1 246.5 +111.3 +82 Growth capex -10.1 -43.

  16. Slide 16: Optimization of Working Capital

    Optimization of Working Capital in € mn 2015 2016 Chg. in % Change in inventories -57.3 +20.9 >100 Change in trade receivables +20.2 -5.7 <-100 Change in trade payables -14.9 +30.5 >100 Change in other net current assets +17.8 -29.8 <-100 Change in Working Capital -34.2 +15.9 >100 ► Significant stoc

  17. Slide 17: Total investments in line with guidance

    Total investments in line with guidance in € m 2015 2016 Chg. in % Normal capex 137.7 137.3 0 in % of depreciation 68% 66% Growth capex 10.1 43.8 >100 Total investments 147.8 181.1 +23 ► Normal capex includes besides replacement investments also investments for technical upgrades, product innovation

  18. Slide 18: Hybrid bond results in higher net debt

    Exercise of call option for the buyback of 2007 hybrid bond results in higher net debt due to… 800 700 1) +240.9 631.6 Reduction of net debt by ~ € 140 mn 600 534.1 500 +181.1 in € mn 390.7 400 -62.5 300 +32.5 +23.4 200 -317.9 100 0 31/12/2015 Gross cash flow Dividend Hybrid coupon Total investments

  19. Slide 19: Reclassification from equity to debt

    …the reclassification from equity to debt Equity and liabilities 31/12/2015 Equity and liabilities 31/12/2016 Equity 2,054 Equity 1,849 thereof: Hybrid capital 491 thereof: Hybrid capital 266 Non-current provisions and liabilities 829 Non-current provisions and liabilities 809 Current provisions and

  20. Slide 20: Substantial liquidity reserve at year-end

    Substantial liquidity reserve at year-end ► Cash 31/12/2016: € 197 mn ► Credit lines: € 550 mn  thereof drawn 31/12/2016: € 80 mn  thereof undrawn 31/12/2016: € 470 mn ► Term structure: 700 600 500 in € mn 400 Undrawn credit lines 300 Hybrid 200 2007 First-Call Date 100 Drawn Hybrid 2014 credit li

  21. Slide 21: Net debt / EBITDA clearly below 2.0 years

    Net debt / EBITDA clearly below 2.0 years Treasury ratios 31/12/2014 1) 31/12/2015 31/12/2016 Covenant Net debt / EBITDA 1.9 1.4 1.6 <3.50 EBITDA / Interest result 5.8 8.7 10.8 >3.75 1) Pro-forma calculation, including 12 months of EBITDA and interest result for Tondach Gleinstätten ► Repayment peri

  22. Slide 22: Dividend increase by 35% to € 0.27 per share

    Dividend increase by 35% to € 0.27 per share in € mn 2015 2016 Free cash flow 135.1 246.5 Payment of hybrid coupon -20.9 -32.5 Free cash flow post hybrid coupon 114.2 214.0 Dividend 23.4 31.6 Share 20% 15% ► Conditions for reasonable and continuous increase in the dividend:  Free cash flow for the

  23. Slide 23: Segments at a glance

    hs Wienerberger Segments at a glance

  24. Slide 24: Results 2016 by Segment

    Results 2016 by Segment Revenues: € 2,973.8 mn | 0% EBITDA: € 404.3 mn | +9% Clay Building Pipes & Pavers North Holding Materials Europe Europe America & Others +0% +11% +7% +28% -3% -4% -9% -16% +5% +1% 1400 1.174 1200 1000 800 in € mn 577 600 507 412 400 293 185 200 106 63 35 33 9 0 -18 -200 CBM W

  25. Slide 25: Results 2016 by Product Group

    Results 2016 by Product Group EBITDA margin improved to 13.6% (2015: 12.4%) EBITDA 14% 22% 16% 9% 9% margin 1.000 937 800 671 695 600 554 in € mn 400 200 119 112 116 93 89 11 0 0 -20 -200 Wall Roof Facade Pavers Pipes Holding & Others Revenues EBITDA 25

  26. Slide 26: Clay Building Materials Western Europe Results 2016

    Clay Building Materials Western Europe Results 2016 CBM Western Europe (in € mn) 2015 2016 Chg. in % External revenues 2016 External revenues 1,170.2 1,174.4 0 EBITDA 166.7 185.0 +11 40% EBITDA margin 14.2% 15.8% - ► Significant organic increase in earnings compared to previous year ► Slight growth

  27. Slide 27: Clay Building Materials Eastern Europe Results 2016

    Clay Building Materials Eastern Europe Results 2016 CBM Eastern Europe (in € mn) 2015 2016 Chg. in % External revenues 2016 External revenues 472.8 506.8 +7 EBITDA 82.6 105.7 +28 EBITDA margin 17.5% 20.9% - 17% ► Positive market and business development in almost all countries ► New construction and

  28. Slide 28: Pipes & Pavers Western Europe Results 2016

    Pipes & Pavers Western Europe Results 2016 P&P Western Europe (in € mn) 2015 2016 Chg. in % External revenues 2016 External revenues 592.7 576.7 -3 EBITDA 65.6 63.1 -4 19% EBITDA margin 11.1% 10.9% - ► Plastic pipes:  Slight revenue and earnings growth  Solid development of demand results in earni

  29. Slide 29: Pipes & Pavers Eastern Europe Results 2016

    Pipes & Pavers Eastern Europe Results 2016 P&P Eastern Europe (in € mn) 2015 2016 Chg. in % External revenues 2016 External revenues 450.8 411.5 -9 EBITDA 42.3 35.4 -16 14% EBITDA margin 9.4% 8.6% - ► Massive delays in the tendering activity of EU-subsidised infrastructure projects have an adverse i

  30. Slide 30: North America Results 2016

    North America Results 2016 North America (in € mn) 2015 2016 Chg. in % External revenues 2016 External revenues 277.5 292.7 +5 10% EBITDA 32.2 32.7 +1 EBITDA margin 11.6% 11.2% - ► Organic earnings improvement by 5% in the Division  Earnings contribution from the sale of non-core real estate of € 9

  31. Slide 31: Outlook 2017

    hs Wienerberger Outlook 2017 US He ‘4

  32. Slide 32: Growth in time of high volatility

    Growth in time of high volatility ► Political and economic uncertainties determine the market environment  Interest rate and FX rate fluctuations  BREXIT and its impacts on UK and continental Europe  Greek sovereign debt crisis  Public investments in new construction and infrastructure  Electio

  33. Slide 33: Market development 2017 for clay block, facing brick and roof tile

    Market development 2017 for clay block, facing brick and roof tile activities Mountain Region Midwest Mid-Atlantic Southeast Market growth (>2%) Stable development Market decline (<-2%) Note: Estimates refer to developments in our relevant new construction and renovation markets for the clay block,

  34. Slide 34: Market development 2017 for pipe activities

    Market development 2017 for pipe activities Revenues by application 8% 17% 47% 28% Wastewater and rainwater management Supply and transport Building installations Special applications Market growth (>2%) Stable development Market decline (<-2%) Note: Estimates refer to developments in our relevant m

  35. Slide 35: Outlook for our Divisions

    Outlook for our Divisions ► Clay Building Materials Europe  Slight growth in new construction and investment restraint in renovation in Western Europe > Increase in new housing construction in France and Germany > Positive development of demand in UK in H1 > Slowdown of market growth in the Netherl

  36. Slide 36: Outlook for our Divisions

    Outlook for our Divisions ► Pipes & Pavers Europe  Plastic pipes: > Healthy market environment in Western Europe > Potential recovery of demand in Eastern Europe in H2 > Stable development in the international project business  Ceramic pipes: > Slight market improvement in European core markets 

  37. Slide 37: Significant EBITDA growth in 2017

    Significant EBITDA growth in 2017 ► Organic development includes EBITDA development  Increase in sales volumes and prices  Savings from Operational Excellence of ~ € 10 mn 440 ► Not included are impacts from 430 420 415  Foreign exchange effects 410  Consolidation in € mn 400  Sale of non-core

  38. Slide 38: Outlook 2017

    Outlook 2017 EBITDA LFL € 415 mn │ +9% Depreciation ~ € 190 mn Net interest result ~ € -35 mn Working Capital in % of revenue at year-end ~ 20% Normal capex ~ € 145 mn Growth capex ~ € 25 mn 38

  39. Slide 39: Maximizing shareholder value through value creative capital allocation

    Maximizing shareholder value through value creative capital allocation  Sustainable growth of Free Cash Flow Financial discipline 1   Net Debt / EBITDA < 2.0x at year-end  Optimization of financing costs Spending discipline 2   Normal capex remains below depreciation until 2020  Continuous ev

  40. Slide 40: Clear strategy for reaching our goals 2020

    Clear strategy for reaching our goals 2020  OPERATIONAL ORGANIC GROWTH GROWTH PROJECTS EXCELLENCE  Digitalization  Continuous cost and  Selective bolt-on  Innovative products, process optimization projects in core markets services and solutions  Portfolio optimization GROUP EBITDA TARGET 2020

  41. Slide 41: Thank you for your attention!

    Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerberg City, Wienerbergstrasse 11 T +43 1 60192 10221 / F +43 1 60192 10425, investor@wienerberger.com / www.wienerberger.com Thank you for your attention!

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