Wienerberger Ag · VIE:WIE
Wienerberger — H1 2023 Earnings Presentation
51 slides from Wienerberger's earnings presentation, Aug 10, 2023
Slide 1: Results H1 2023
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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: Executive Summary First Half-Year 2023
EXECUTIVE SUMMARY FIRST HALF-YEAR 2023 3
Slide 4: Strong Results in a Weak Market Environment
EXECUTIVE SUMMARY H1 2023 STRONG RESULTS IN A WEAK MARKET ENVIRONMENT Significantly reduced investments in new build, as well as in renovation and infrastructure Reorientation ❯ Steep rise in interest rates (esp. outside the euro area) of Wienerberger ❯ Restrictive mortgage lending proves effective
Slide 5: End Market Development Europe West
MARKET DEVELOPMENT END MARKET DEVELOPMENT EUROPE WEST 105 100 100 100 98 100 95 95 95 89 84 91 82 Market level in % 85 90 80 75 81 65 70 54 55 45 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 New Build Renovation Infrastructure Market level development with base year 2021 = 100 weighted over the q
Slide 6: End Market Development Europe East
MARKET DEVELOPMENT END MARKET DEVELOPMENT EUROPE EAST 104 105 100 100 99 100 95 99 95 88 84 85 Market level in % 85 81 83 75 75 72 76 65 66 55 55 47 45 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 New Build Renovation Infrastructure Market level development with base year 2021 = 100 weighted over
Slide 7: End Market Development North America
MARKET DEVELOPMENT END MARKET DEVELOPMENT NORTH AMERICA 103 105 100 99 100 100 97 97 93 95 98 87 Market level in % 85 88 79 77 75 77 76 69 65 55 45 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 New Build Renovation Infrastructure Market level development with base year 2021 = 100 weighted over the
Slide 8: Markets Weaker Than Assumed – Operating EBITDA Guidance € 800-820 mn
EXECUTIVE SUMMARY H1 2023 AND OUTLOOK MARKETS WEAKER THAN ASSUMED – OPERATING EBITDA GUIDANCE OF € 800-820 MN 2023 OUTLOOK ❯ Market environment remains sluggish PROACTIVE COST MANAGEMENT ❯ Initiatives by local governments and the European ❯ Swift adjustments to significantly weaker end markets Union
Slide 9: H1 2023 Development
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Slide 10: Strong Financial Performance in a Challenging Environment
H1 2023 STRONG FINANCIAL PERFORMANCE IN A CHALLENGING ENVIRONMENT REFLECTS RESILIENCE OF BUSINESS MODEL Revenue Operating EBITDA € 2,203 mn € 454 mn (H1 2022: € 2,572 mn | -14%) (H1 2022: € 545 mn | -17%) Net result Operating EBITDA margin € 223 mn 20.6% (H1 2022: € 321 mn | -30%) (H1 2022: 21.2% |
Slide 11: Organic Growth Through Innovation & System Solutions
WE CONTINUE OUR STRONG FOCUS ON INNOVATION ORGANIC GROWTH THROUGH INNOVATION & SYSTEM SOLUTIONS TARGET VALUES Innovative System › Regardless of the market developments, products solutions Wienerberger remains strongly committed to its focus on innovation & enhancing the share of system solutions Ret
Slide 12: Pro-Active Cost Management to Address Slowing Market Demand
H1 2023 – COST MANAGEMENT PRO-ACTIVE COST MANAGEMENT TO ADDRESS SLOWING MARKET DEMAND COST MANAGEMENT › Production cost savings › Well prepared & efficient production standstills › Overhead cost savings Strict & disciplined cost management significantly contributes to mitigate volume-related earning
Slide 13: Keeping Cost Inflation Under Control Thanks to Procurement Strategy
H1 2023 – PROCUREMENT STRATEGY KEEPING COST INFLATION UNDER CONTROL THANKS TO FORWARD-LOOKING PROCUREMENT STRATGY PROCUREMENT STRATEGY › Ensured availability of needed materials at fixed prices › Strategy allows for gradual & consistent pricing › Enabling Wienerberger to remain a reliable partner al
Slide 14: Sound Self-Help Contribution in H1 2023 € 22 mn
H1 2023 – GROWTH BY SELF-HELP SOUND SELF-HELP CONTRIBUTION IN H1 2023 SELF-HELP INITIATIVES EBITDA CONTRIBUTION Majority of EBITDA contribution in H1 coming from › Innovation › Manufacturing Excellence SELF-HELP CONTRIBUTION IN H1 2023: € 22 MN Fully on track to deliver € 135 mn earnings enhancement
Slide 15: Strong Financial Result Despite Declining Markets
OPERATING EBITDA H1 2023 STRONG FINANCIAL RESULT DESPITE DECLINING MARKETS REFLECT RESILIENT BUSINESS MODEL 600 120% 545 550 490 OPERATING EBITDA Market level in % (Index 2021 FY =100) 110% 500 96% 98% 97% 97% DEVELOPMENT H1 2023 454 100% 450 93% ❯ Market level in H1 2023 significantly below EBITDA
Slide 16: Financials Q2 2023
FINANCIALS Q2 2023 16
Slide 17: Solid Q2 Result Proves Resilience of Diversified Business Model
Q2 2023 SOLID Q2 RESULT PROVES RESILIENCE OF DIVERSIFIED BUSINESS MODEL External revenues (in € mn) Q2 2023 Q2 2022 Chg. in % Prevailing high inflation and interest rates suppressed demand Europe West -13 609.7 700.1 in all our markets in Q2 2023. Europe East 313.2 451.6 -31 However, diversification
Slide 18: Solid Q2 Revenue Development in a Challenging Environment
REVENUE DEVELOPMENT Q2 2023 SOLID Q2 REVENUE DEVELOPMENT IN A CHALLENGING ENVIRONMENT AND COMPARED TO A VERY STRONG Q2 2022 -18% in € mn -19% Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Financial R
Slide 19: Q2 Operating EBITDA on High Level
OPERATING EBITDA DEVELOPMENT Q2 2023 Q2 OPERATING EBITDA ON HIGH LEVEL SUPPORTED BY PROACTIVE COST MANAGEMENT AND SELF-HELP MEASURES -23% in € mn -23% Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Fi
Slide 20: Financials H1 2023
FINANCIALS H1 2023 20
Slide 21: Europe West: Strong Operating Performance Despite Challenging Environment
H1 2023 | EUROPE WEST STRONG OPERATING PERFORMANCE DESPITE A CHALLENGING ENVIRONMENT EUROPE WEST › System solutions for the entire building envelope (wall, roof, facade) and pavements as well as for wastewater and rainwater disposal, sanitation, › Continued downward trend in heating and cooling inst
Slide 22: Europe East: Strict Cost Management Counteracts Severe Market Downturn
H1 2023 | EUROPE EAST STRICT COST MANAGEMENT COUNTERACTS AGAINST SEVERE MARKET DOWNTURN EUROPE EAST › Extremely high inflation and mortgage › Solutions for the building envelope (wall and roof) and pavements as well rates led to significant decline of new as for wastewater and rainwater disposal, sa
Slide 23: North America: Profitability Increased Driven by Meridian Synergies
H1 2023 | NORTH AMERICA PROFITABILITY INCREASED DRIVEN BY MERIDIAN SYNERGIES & STRONG CONTRIBUTION FROM PIPES BUSINESS NORTH AMERICA › Ceramic facade solutions as well as plastic pipe solutions for wastewater and rainwater disposal and drinking water supply › Lower volumes in new build, with › Canad
Slide 24: Solid Revenue Development Despite Significantly Declining Markets
REVENUE DEVELOPMENT H1 2023 SOLID REVENUE DEVELOPMENT DESPITE SIGNIFICANTLY DECLINING MARKETS -14% in € mn -14% Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Financial Reporting in Hyperinflationary
Slide 25: Excellent Price and Cost Management Ensures High Profitability
OPERATING EBITDA DEVELOPMENT H1 2023 BASED ON EXCELLENT PRICE AND COST MANAGEMENT, WIENERBERGER ENSURES PROFITABILITY AT A HIGH LEVEL -16% in € mn -17% Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (F
Slide 26: H1 2023 Summary: Excellent Results Driven by Cost and Price Management
H1 2023 - SUMMARY EXCELLENT RESULTS DRIVEN BY PROACTIVE COST AND PRICE MANAGEMENT COMBINED WITH SELF-HELP INITIATIVES Self-help initiatives € 22 mn Operating EBITDA € 454 mn (H1 2022: € 545 mn | -17%) Cost management € 29 mn Operating EBITDA margin 20.6% Successfully continued (H1 2022: 21.2% | -60b
Slide 27: Sustainability Program 2023-2026
SUSTAINABILITY PROGRAM 2023-2026 27
Slide 28: Wienerberger's Sustainability Program 2023
FY 2022 – ESG ACHIEVEMENTS 2021-2022 WIENERBERGER’S SUSTAINABILITY PROGRAM 2023 ENVIRONMENT SOCIAL GOVERNANCE Decarbonization Diversity -15% CO2e1) emissions vs. 2020 >15% females in Senior Management Committed to highest national [2022: 15%] and international governance [2022: -13.2%] >30% females
Slide 29: ISS ESG Rating Upgrade
ESG RECOGNITION ISS ESG RATING UPGRADE › Our continuous ESG efforts receive regular recognition by external ESG rating agencies › In one of our most important ESG ratings, ISS ESG, we achieved an improvement from C to B- › This confirms our Prime Status and marks Wienerberger as an attractive ESG in
Slide 30: Leader in ESG Ratings & Reportings
ESG STRATEGY LEADER IN ESG RATINGS & REPORTINGS, REFLECTING OUR STRONG INCLUSION OF ESG IN OUR BUSINESS MODEL ESG RATINGS B- B AAA Medium Risk Gold Prime Status REPORTING FRAMEWORKS EMISSIONS SCOPE 1+2 Consultation Planned RY process 2023 2023 30
Slide 31: Learnings from Sustainability Program 2020-2023
SUSTAINABILITY PROGRAM 2020-2023 LEARNINGS FROM SUSTAINABILITY PROGRAM 2020-2023 › Three-year time horizon led to specific actions and brought internal and external recognition for Wienerberger › Covered our most material sustainability topics under one umbrella › Supported the development of the in
Slide 32: Sustainability Program 2026
SUSTAINABILITY PROGRAM 2023-2026 SUSTAINABILITY PROGRAM 2026 › Integration and lessons learned from Sustainability Program 2023 › Largest business opportunities are based on our reported TCFD framework › Factoring in CSRD/ESRS framework › Stakeholder feedback incorporated › Investor input through ro
Slide 33: Expansion of 2023 ESG Target Roadmap Until 2026
SUSTAINABILITY PROGRAM 2023-2026 EXPANSION OF 2023 ESG TARGET ROADMAP UNTIL 2026 2026 Targets Decarbonization 2023 Targets Circularity Biodiversity Decarbonization Revenue from products supporting Circularity net zero buildings Biodiversity Water management Training & Development Waste management Di
Slide 34: 2026 Environmental Targets 1/2
SUSTAINABILITY PROGRAM 2023-2026 2026 ENVIRONMENTAL TARGETS 1/2 Decarbonization and Energy Mix 25% reduction CO2 emissions scope 1 & 2 (2020 - 2026) 10% reduction CO2 emissions scope 3 (2022 - 2026) 15% of renewable energy used in own production (2023 - 2026) Circularity >80% of sales from highly du
Slide 35: 2026 Environmental Targets 2/2
SUSTAINABILITY PROGRAM 2023-2026 2026 ENVIRONMENTAL TARGETS 2/2 Revenue from products supporting net zero buildings 75% of total revenue coming from building products contributing to net zero buildings1) Water management 35 million m3 of water harvested, retained and saved through our products in in
Slide 36: 2026 Social Targets
SUSTAINABILITY PROGRAM 2023-2026 2026 SOCIAL TARGETS Health & Safety Zero harm (principle) 20,000 visible leadership hours (VLM) per year (2023 – 2026) Training & Development 18h of training per employee per year (2023 - 2026) 500 apprentices cumulatively trained (2023 - 2026) 30,000 cumulative numb
Slide 37: Terreal Update
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Slide 38: Wienerberger and Terreal – Combining Forces
TERREAL UPDATE WIENERBERGER AND TERREAL – COMBINING FORCES Combining UPDATE on the transaction Transformational growth opportunity ❯ Closing to be expected in Q3 / Q4 2023 ❯ Enhancing Wienerberger’s presence in the largest & growing roofing ❯ Major regulatory approvals achieved markets in Europe (Fr
Slide 39: Outlook 2023
OUTLOOK 2023 39
Slide 40: End Market Development 2023: Weaker in Europe, North America as Expected
END MARKET EXPECTATIONS 2023 - UPDATE END MARKET DEVELOPMENT 2023: WEAKER IN EUROPE, NORTH AMERICA AS EXPECTED EUROPE NORTH AMERICA expectations adjusted expectations confirmed Macro economic development to remain challenging: › High cost inflation › Mortgage rates further up NEW BUILD -30% (prior:
Slide 41: Keeping Costs Well Under Control; Expected Cost Inflation <8% in 2023
OUTLOOK 2023: COST INFLATION KEEPING COSTS WELL UNDER CONTROL; EXPECTED COST INFLATION OF <8% IN 2023 FORWARD-LOOKING PROCUREMENT STRATEGY FOR RAW MATERIALS & ENERGY Plastics Raw Materials Ceramics Energy Personnel Supply disruptions still possible, but considerably Pressure from personnel cost Shor
Slide 42: Operating EBITDA Guidance of € 800-820 mn for 2023
OPERATING EBITDA 2023 DESPITE SIGNIFICANTLY WEAKER THAN ASSUMED MARKETS, WIENERBERGER GUIDES OPERATING EBITDA OF € 800-820 MN FOR 2023 2023 OUTLOOK 1200 110% ❯ Market environment remains sluggish 100% 1,020 1000 96% 100% ❯ Initiatives by local governments and the European 910 93% Union are required
Slide 43: Appendix
APPENDIX
Slide 44: Operating EBITDA 17% Down on Exceptionally Strong Prior Year
EBITDA DEVELOPMENT H1 2023 OPERATING EBITDA 17% DOWN ON EXCEPTIONALLY STRONG PRIOR YEAR EBITDA DEVELOPMENT Reported Operating -18% -17% EBITDA adjustments H1 2023 H1 2022 in € mn EBITDA reported 448.2 548.8 Sale of assets1) -3.5 -3.5 Structural adjustments2) 9.5 0.1 549 545 Operating EBITDA 454.1 54
Slide 45: Income Statement
H1 2023 INCOME STATEMENT* in € mn H1 2023 H1 2022 Chg. in % Revenues 2,202.5 2,571.9 -14 Operating EBITDA 454.1 545.4 -17 EBITDA 448.2 548.8 -18 Impairment charges to assets - -14.8 >100 EBIT 307.4 393.5 -22 Financial result -28.3 -19.7 -43 Profit before tax 279.1 373.8 -25 Income taxes -55.6 -52.7
Slide 46: Balance Sheet
H1 2023 BALANCE SHEET* in € mn 30/06/2023 31/12/2022 Chg. in % Equity1) 2,568.8 2,450.4 +5 Net debt 1,455.6 1,079.3 +35 Net debt / EBITDA 1.6 1.1 - Capital employed 3,997.3 3,492.9 +14 Total assets 5,427.9 5,199.3 +4 Gearing 56.7% 44.0% - Working Capital / Revenues 27.1% 15.9% - › Strong focus on wo
Slide 47: Cash Flow Statement
H1 2023 CASH FLOW STATEMENT* in € mn H1 2023 H1 2022 Chg. in % Gross cash flow 361.7 483.6 -25 Change in working capital -426.2 -290.8 -47 Maintenance Capex -52.5 -43.8 -20 Divestments and other 8.9 10.0 -11 Lease payments -29.0 -28.2 -3 Free cash flow -137.1 130.9 <-100 Special Capex -44.1 -54.4 +1
Slide 48: Green Hydrogen with Wienerberger
WE CONTINUE OUR STRONG FOCUS ON INNOVATION GREEN HYDROGEN WITH WIENERBERGER › World’s first plastic pipe system › Completely › 2.5 times lower CO2 emissions for transporting hydrogen corrosion resistant over life cycle 48
Slide 49: Industry 4.0: Wienerberger in Touch with the Future
WE CONTINUE OUR STRONG FOCUS ON INNOVATION INDUSTRY 4.0: WIENERBERGER IN TOUCH WITH THE FUTURE Digital twins 3D printer Construction robot efficient production optimized production faster, more precise and with and climate protection automated 3D printing more sustainable construction process 49
Slide 50: Water Irrigation: Maximizing Yields Under Challenging Conditions
WE CONTINUE OUR STRONG FOCUS ON INNOVATION WATER IRRIGATION: MAXIMIZING YIELDS UNDER CHALLENGING CONDITIONS Tailored drip irrigation solutions with end-to-end irrigation service, covering system design, delivery, installation, and after- sales support © Đorđe Agroklub › Maximize plant yields › Impro
Slide 51: Contact
CONTACT Wienerberger AG Investor Relations Wienerbergerplatz 1, 1100 Vienna wienerberger.com/en/investors investor@wienerberger.com +43 1 60192 10221 FINANCIAL CALENDAR November 9, 2023 Results for the First Three Quarters of 2023 51