Wienerberger Ag · VIE:WIE
Wienerberger — Q1-3 2022 Earnings Presentation
36 slides from Wienerberger's earnings presentation, 2022
Slide 1: Results Q1-3 2022
wienerberger RESULTS Q1-3 2022
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: Intro
INTRO RESULTS Q1-3 2022
Slide 4: Strong organic growth despite slowing markets and further guidance increase
Q1-3 2022 STRONG ORGANIC GROWTH DESPITE SLOWING MARKETS AND FURTHER GUIDANCE INCREASE STRONG ORGANIC GROWTH TRANSFORMATION THANKS TO › Continuous transformation of › High demand for our sustainable high-quality solutions Wienerberger to a solution business offering a lifespan of >100y Operating EBIT
Slide 5: A very strong set of financial results
Q1-3 2022 A VERY STRONG SET OF FINANCIAL RESULTS Revenue EBITDA reported EBITDA margin € 3,848 mn € 835 mn 21.7% (Q1-3 2021: € 2,897 mn | +33%) (Q1-3 2021: € 510 mn | +64%) (Q1-3 2021: 17.6% | +4.1pp) Free cash flow ROCE Earnings per share € 351 mn 20.4% € 4.38 (Q1-3 2021: € 236 mn | +48%) (Q1-3 202
Slide 6: We successfully continued to outperform cost inflation
Q1-3 2022 WE SUCCESSFULLY CONTINUED TO OUTPERFORM COST INFLATION › Firmly established, excellent procurement PROCUREMENT organization at Group level STRATEGY › Forward looking procurement strategy WIENERBERGER COST INFLATION implemented for required input materials & energy IN Q1-3 2022 +16% SUCCESS
Slide 7: Our solutions last for >100 years, reduce CO2 emissions & are fully recyclable
FOCUS TOPIC: ESG TARGETS OUR SOLUTIONS LAST FOR >100 YEARS, SIGNIFICANTLY REDUCE CO2 EMISSIONS & ARE FULLY RECYCLABLE DECARBONIZATION CIRCULAR ECONOMY BIODIVERSITY Target until 2023: Target until 2023: Target until 2023: -15% CO2 >90% of Biodiversity programs / measures new products recyclable for a
Slide 8: We are actively driving the energy transition and strive for electricity self-sufficiency
FOCUS TOPIC: ENERGY WE ARE ACTIVELY DRIVING THE ENERGY TRANSITION AND STRIVE FOR ELECTRICITY SELF-SUFFICIENCY ENERGY SELF-SUFFICIENCY IN TRANSITION ELECTRICITY › Energy savings as major driver! › Electricity as key element for driving the energy transition › >1/3 of revenue exposure Solar energy alr
Slide 9: We invest to go greener in the UK roofing market
FOCUS TOPIC: GREEN GROWTH WE INVEST TO GO GREENER IN THE UK ROOFING MARKET STRATEGIC RATIONALE UK PLANT UPGRADE › Extending capacity in growing UK renovation market › New state of the art concrete rooftile plant in Smeed Dean, Kent › Strengthening Wienerberger’s production footprint in the largest r
Slide 10: Continue with bolt-on acquisitions with a high strategic fit
FOCUS TOPIC: GROWTH CONTINUE WITH BOLT-ON ACQUISITIONS WITH A HIGH STRATEGIC FIT M&A PORTFOLIO OPTIMIZATION Mix improvement within Tackling labor shortage through Expansion of Continuous & disciplined inhouse piping solutions increased share of system solutions renovation exposure review of portfoli
Slide 11: Major focus topics for 2022
FY 2022 MAJOR FOCUS TOPICS FOR 2022 ONGOING BUSINESS ESG and ENERGY M&A and GROWH INVESTMENTS › Cost inflation successfully › ESG targets well on track › Successful continuation of covered acquisition strategy focused on › Actively driving the energy growing the renovation & water › Continuous Opera
Slide 12: Financials Q3 2022
- FINANCIALS Q3 2022
Slide 13: Strong third quarter results
Q3 2022 STRONG THIRD QUARTER RESULTS Revenue EBITDA reported € 1,276 mn € 287 mn (Q3 2021: € 1,029 mn | +24%) (Q3 2021: € 203 mn | +41%) Net result EBITDA margin € 166 mn 22.5% (Q3 2021: € 115 mn | +44%) (Q3 2021: 19.7% | +2.7pp) 13
Slide 14: Total revenues up +24%, organic growth of +12%
REVENUE DEVELOPMENT Q3 2022 TOTAL REVENUES UP +24%, ORGANIC GROWTH OF +12% +12% organic 1,276 122 6 120 1,029 in € mn Revenues Organic FX Scope Revenues Q3 2021 Q3 2022 +24% Note: Rounding differences may arise from automatic processing of data 14
Slide 15: Total operating EBITDA up +33%, organic growth of +15%
OPERATING EBITDA DEVELOPMENT Q3 2022 TOTAL OPERATING EBITDA UP +33%, ORGANIC GROWTH OF +15% +15% organic 274 31 5 31 207 in € mn Operating EBITDA Organic 1) FX Scope Operating EBITDA Q3 2021 Q3 2022 +33% Note: Rounding differences may arise from automatic processing of data 1) Including self help in
Slide 16: Satisfactory performance in the third quarter of 2022
Q3 2022 SATISFACTORY PERFORMANCE IN THE THIRD QUARTER OF 2022 External revenues (in € mn) Q3 2022 Q3 2021 Chg. in % Wienerberger Building Solutions 681.5 603.5 +13 In Q3 2022, we surpassed the excellent results of the Wienerberger Piping Solutions 327.7 312.2 +5 previous year, although the challenge
Slide 17: Financials Q1-3 2022
FINANCIALS Q1-3 2022
Slide 18: Total revenues up +33%, driven by strong organic growth of +19%
REVENUE DEVELOPMENT Q1-3 2022 TOTAL REVENUES UP +33%, DRIVEN BY STRONG ORGANIC GROWTH OF +19% +19% organic 3,848 392 10 550 2,897 in € mn Revenues Organic FX Scope Revenues Q1-3 2021 Q1-3 2022 +33% Note: Rounding differences may arise from automatic processing of data 18
Slide 19: Total operating EBITDA up +60%, driven by strong organic growth of +43%
OPERATING EBITDA DEVELOPMENT Q1-3 2022 TOTAL OPERATING EBITDA UP +60%, DRIVEN BY STRONG ORGANIC GROWTH OF +43% +43% organic 820 77 11 220 512 in € mn Operating EBITDA Organic 1) FX Scope Operating EBITDA Q1-3 2021 Q1-3 2022 +60% Note: Rounding differences may arise from automatic processing of data
Slide 20: Substantial earnings growth and strong contribution from value-creating M&A
EBITDA DEVELOPMENT Q1-3 2022 SUBSTANTIAL EARNINGS GROWTH AND STRONG CONTRIBUTION FROM VALUE-CREATING M&A EBITDA DEVELOPMENT Reported Operating +64% +60% EBITDA adjustments Q1-3 2022 Q1-3 2021 in € mn EBITDA reported 835.4 510.1 Sale of assets1) -15.9 -9.7 Structuraladjustments2) - 11.2 835 820 Opera
Slide 21: Cash flow & balance sheet
CASH FLOW & BALANCE SHEET TRANSFORMATION TO HIGHLY CASH GENERATING BUSINESS MODEL SUPPORTS STRONG BALANCE SHEET & VALUE CREATION CASH FLOW BALANCE SHEET & VALUE CREATION Free cash flow in € mn 30.9.2022 31.12.2021 Chg. in % € 351 mn ROCE 20.4% 12.7% +7.7pp Net debt 1,179.6 1,134.5 +4 Net debt/EBITDA
Slide 22: Energy costs kept under control; reliable partner to customers
ENERGY FORWARD BUYING POLICY WE HAVE MANAGED TO KEEP ENERGY COSTS WELL UNDER CONTROL AND REMAINED A RELIABLE & PREDICTABLE PARTNER TO OUR CUSTOMERS WIENERBERGER GAS VOLUMES ENSURED FOR 2022-2025 ENERGY STRATEGY as of 30 September 2022 Our policy is to buy gas and electricity 96% 90% volumes forward
Slide 23: Self help program delivers earnings contribution of €38 mn
GROWTH BY SELF HELP SELF HELP PROGRAM DELIVERS STRONG EARNINGS CONTRIBUTION OF € 38 MN IN Q1-3 2022 EBITDA CONTRIBUTION EXPECTED PROGRAM CONTRIBUTION IN 2022 135 Innovation & organic growth ~55% Impact on revenues and cost of sales 45 Manufacturing excellence 10 90 ~35% Impact on cost of sales 38 Pr
Slide 24: Balanced maturity profile and convenient liquidity position
FINANCIAL HIGHLIGHTS Q1-3 2022 BALANCED MATURITY PROFILE AND CONVENIENT LIQUIDITY POSITION ENABLES FINANCIAL FLEXIBILITY Maturity profile as of Sep. 30, 2022 | in mn € 76% of gross debt = ∑ 1,206 mn € (excl. leasing) fixed at < 3% 500 24% 400 300 76% 200 fix incl. IRS variable 100 › Over the last ye
Slide 25: Excellent financials reflecting strong business performance
FINANCIAL HIGHLIGHTS Q1-3 2022 EXCELLENT FINANCIALS REFLECTING STRONG BUSINESS PERFORMANCE 19% ORGANIC REVENUE GROWTH SIGNIFICANT EARNINGS GROWTH SELF HELP AND M&A driven by continuous focus on › Operating EBITDA: € 820 mn | +60% Self help: Earnings contribution from innovation & system solutions co
Slide 26: Outlook
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Slide 27: Operating EBITDA of €950-970 mn in 2022
OUTLOOK 2022 DESPITE HIGHLY CHALLENGING CONDITIONS, WIENERBERGER WILL GENERATE AN OPERATING EBITDA OF € 950-970 MN IN 2022 Expectations COST Expectations END Expectations ENERGY FY 2022 INFLATION FY 2022 MARKETS FY 2022 › New build -10% up to -12% › Availability of gas › Fully covering cost inflatio
Slide 28: Outlook 2023 & Beyond
OUTLOOK 2023 & BEYOND
Slide 29: Challenging, but manageable environment in 2023
OUTLOOK 2023 CHALLENGING, BUT MANAGEABLE ENVIRONMENT IN 2023 Forward buying COST Strong pricing MARKET 2023 to remain ENERGY strategy in place INFLATION power EXPECTATIONS challenging › Availability › Proven track record in covering cost › New build Energy volumes ensured inflation by pricing to con
Slide 30: Ideally positioned for further growth
OUTLOOK 2023 IDEALLY POSITIONED FOR FURTHER GROWTH TRANSFORMATION CULTURE INNOVATION AND M&A › >50% water management & › >80% brand awareness › >30% innovation rate renovation › 25% revenue share of system › <50% energy efficient newbuild › Skilled technical & digital sales teams solutions › Strong
Slide 31: Annex Financials Q1-3 2022
ANNEX FINANCIALS Q1-3 2022
Slide 32: Building Solutions: strong contribution to revenues and earnings
Q1-3 2022 | WIENERBERGER BUILDING SOLUTIONS STRONG CONTRIBUTION TO REVENUES AND EARNINGS, WITH SLIGHT DOWNWARD TREND IN NEW BUILD MARKETS Wienerberger › System solutions for the entire building envelope Building › Clay blocks & facing bricks, roof tiles, concrete pavers › Downward trend in the new b
Slide 33: Piping Solutions: satisfactory performance thanks to portfolio expansion
Q1-3 2022 | WIENERBERGER PIPING SOLUTIONS SATISFACTORY PERFORMANCE THANKS TO CONSISTENT EXPANSION OF OUR PORTFOLIO Wienerberger › Piping solutions for buildings and infrastructure › Lower sales volumes in the Piping › Pipelife plastic pipes & Steinzeug-Keramo ceramic pipes inhouse segment in light o
Slide 34: North America: satisfactory development despite increased mortgage rates
Q1-3 2022 | NORTH AMERICA SATISFACTORY DEVELOPMENT DESPITE SIGNIFICANTLY INCREASED MORTGAGE LENDING RATES › Innovative products and system solutions North › New build market in the USA and › Facing bricks, concrete & calcium silicate products, plastic pipes America › Located in Canada and U.S. Canad
Slide 35: Income statement
Q1-3 2022 | INCOME STATEMENT DESPITE A CHALLENGING ENVIRONEMENT, WE SUCCESSFULLY SURPASSED THE EXCELLENT RESULTS OF THE PREVIOUS YEAR in € mn Q1-3 2022 Q1-3 2021 Chg. in % Revenues 3,848.0 2,896.5 +33 Operating EBITDA 819.6 511.6 +60 EBITDA 835.4 510.1 +64 Operating EBIT 629.1 323.3 +95 Impairment c
Slide 36: Cash flow statement
Q1-3 2022 | CASH FLOW STATEMENT WIENERBERGER WITH HIGHLY CASH GENERATING BUSINESS MODEL in € mn Q1-3 2022 Q1-3 2021 Chg. in € mn Chg. in % Gross cash flow 713.3 409.1 304.2 +74 Change in working capital -293.9 -116.9 -177.0 <-100 Maintenance Capex -76.8 -63.2 -13.6 -21 Divestments and other 52.6 42.