Wienerberger Ag · VIE:WIE
Wienerberger — Investor Day (October 2024)
50 slides from Wienerberger's investor day presentation, Oct 17, 2024
Slide 1: European Plastic Pipe Operations: Strategic Insights and Outlook
EUROPEAN PLASTIC PIPE OPERATIONS STRATEGIC INSIGHTS AND OUTLOOK Investor Day 17 October 2024
Slide 2: Pipe is a significant value contributor to our group
PIPE IS A SIGNIFICANT VALUE CONTRIBUTOR TO OUR GROUP, PROVIDING US WITH… Improved diversification Exposure to structurally Growth and consolidation growing end markets opportunities less cyclical, more Energy transition Scale resilient & Resource-efficient Scope Infrastructure buildings 22% Newbuild
Slide 3: A leading supplier of sustainable piping solutions
AALEADING LEADINGSUPPLIER SUPPLIEROF OFSUSTAINABLE PIPING SOLUTIONS… SUSTAINABLE PIPING SOLUTIONS…
Slide 4: Providing underground infrastructure – the lifelines of our communities
INFRASTRUCTURE …PROVIDING UNDERGROUND INFRASTRUCTURE – THE LIFELINES OF OUR COMMUNITIES… Conveying potable water, wastewater, stormwater, hydrogen & gas, or cables, they keep our modern world turning and keep life safe, clean and comfortable. 10/17/2024 4
Slide 5: Piping systems and solutions for safer and more comfortable buildings
BUILDINGS …AND PIPING SYSTEMS AND SOLUTIONS FOR SAFER AND MORE COMFORTABLE BUILDINGS. Delivering heating & cooling, managing wastewater, and powering electricity to ensure your indoor spaces remain safe, efficient, and comfortable, keeping modern living seamless and 10/17/2024 reliable. 5
Slide 6: Footprint - European plastic pipe operations
CAPITAL MARKETS DAY 2024 FOOTPRINT - EUROPEAN PLASTIC PIPE OPERATIONS 1.2 BN EUR 32 REVENUE PRODUCTION 24 2023 SITES COUNTRIES 691,000 km 4,000 pipes installed EMPLOYEES in 2023
Slide 7: Leading positions across Western and Eastern Europe
PLASTIC PIPES EUROPE LEADING POSITIONS ACROSS WESTERN AND EASTERN EUROPE Geographical Segment split exposure EUROPE EAST BUILDING EUROPE INFRASTRUCTURE WEST Main production locations 7
Slide 8: Favorable end market drivers
FAVORABLE END MARKET DRIVERS 8
Slide 9: Market favors plastic as the winning material across applications
FAVORABLE END MARKET DRIVERS MARKET FAVORS PLASTIC AS THE WINNING MATERIAL ACROSS APPLICATIONS Gravity pipes Pressure pipes > 300mm Hot & Cold 7% 6% 6% 6% 17% 15% 12% 19% 37% 41% 39% 37% 44% 44% 54% 50% 76% 78% 81% 73% 56% 63% 56% 59% 61% 63% 46% 50% 2011 2016 2020 2026 2011 2016 2020 2026 2011 2016
Slide 10: Focus on solutions addressing segments with structurally growing end markets
FAVORABLE END MARKET DRIVERS FOCUS ON SOLUTIONS ADDRESSING SEGMENTS WITH STRUCTURALLY GROWING END MARKETS ENERGY TRANSITION RESOURCE-EFFICIENT BUILDINGS CLIMATE RESILIENT INFRASTRUCTURE 10
Slide 11: Energy transition
ENERGY TRANSITION 11
Slide 12: The energy transition requires unprecedented change of energy infrastructure
ENERGY TRANSITION THE ENERGY TRANSITION REQUIRES UNPRECEDENTED CHANGE OF ENERGY INFRASTRUCTURE POWER GENERATION POWER TRANSMISSION POWER DISTRIBUTION Final energy supply (PWh) Power grid length in the EU Power grid length in the EU 10.1 2.5 8.0 3.1 3.6 4.4 3.7 10 (million km) (million km) +80% 0,5 0
Slide 13: Example – Wind power
ENERGY TRANSITION EXAMPLE – WIND POWER Safeguarding Swedish wind power with a sustainable cable protection solution › 102 km of recyled PE cable protetcion from Pipelife Sweden for a reliable power supply for the Skallberget-Utterberget wind farm › 12 turbines with 6.6 MW of power each › Project sup
Slide 14: Example – Solar power
ENERGY TRANSITION EXAMPLE – SOLAR POWER Finland's first solar park to be connected to the district heating network › The solar park will have 13,000 double-sided 700W solar panels with a total capacity of 9.5 megawatt and will be connected to the local district heating network › Cable protection pip
Slide 15: Example – Hydrogen economy
ENERGY TRANSITION EXAMPLE – HYDROGEN ECONOMY A global first, hydrogen application of Flexible Composite Pipe › Together with Groningen Seaports, SoluForce has developed a Flexible Composite Pipe system for hydrogen applications › The SoluForce Hydrogen Tight solution will be used at Groningen Seapor
Slide 16: Building electrification
ENERGY TRANSITION BUILDING ELECTRIFICATION › Value of low voltage installation in a building has doubled over the last 15-20 years and is expected to further increase at a higher pace › Replace heating from fossil sources (e.g. gas) to electricity (e.g. heat pumps) › Cooking from gas to electro › PV
Slide 17: Resource-efficient buildings
RESOURCE-EFFICIENT BUILDINGS 17
Slide 18: Decarbonisation efforts provide tailwind for building renovation
RESOURCE-EFFICIENT BUILDINGS DECARBONISATION EFFORTS PROVIDE TAILWIND FOR BUILDING RENOVATION… › EU building stock responsible for >40% of final energy consumption and 36% of greenhouse gas emissions › 70% of European houses are energy inefficient and in need of renovation › 27% on energy level E/F
Slide 19: Ban on fossil fuel heaters driving energy conversion in building stock
DECARBONISATION OF BUILDINGS …WITH A BAN ON FOSSIL FUEL HEATERS DRIVING ENERGY CONVERSION IN THE BUILDING STOCK › Several European countries have decided on a ban Oil and gas ALL buildings and phase out of fossil fuel heaters in buildings › Goal is the conversion of building‘s energy sources from fo
Slide 20: Driving solutions that increase resource-efficiency in buildings
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Siphonic Hydronic roof Energy ceiling drainage activation cooling of the roof – solar Low temperature surface heating Rainwater Silent collection water and reuse discharge 20
Slide 21: Driving solutions that increase resource-efficiency in buildings
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS 21
Slide 22: Low temperature surface heating
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Low temperature surface heating NEW LAUNCH 22
Slide 23: Hydronic ceiling cooling
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Hydronic ceiling Cooling NEW LAUNCH 23
Slide 24: Silent water discharge
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Silent water discharge NEW LAUNCH 24
Slide 25: Energy activation of the roof – solar
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Energy activation of the roof - solar NEW LAUNCH 25
Slide 26: Siphonic roof drainage
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Siphonic roof drainage NEW LAUNCH 26
Slide 27: Rainwater collection and reuse
RESOURCE-EFFICIENT BUILDINGS …DRIVING SOLUTIONS THAT INCREASE RESOURCE- EFFICIENCY IN BUILDINGS Rainwater collection and reuse 27
Slide 28: Climate resilient infrastructure
CLIMATE RESILIENT INFRASTRUCTURE 10/17/2024 28
Slide 29: Increasing economic losses from weather- and climate-related extremes in Europe
CLIMATE RESILIENT INFRASTRUCTURE INCREASING ECONOMIC LOSSES FROM WEATHER- AND CLIMATE-RELATED EXTREMES IN EUROPE EUR bn (2022 prices) › Climate-related hazards, such as temperature 70 extremes, heavy precipitation and droughts, pose 60 risks to human health and the environment and can lead to substa
Slide 30: Example: Stormwater management for commercial projects
CLIMATE RESILIENT INFRASTRUCTURE EXAMPLE: STORMWATER MANAGEMENT FOR COMMERCIAL PROJECTS Automated stormwater solution for STEICO production site, Poland › Reuse of water collected from rooftops for production purposes › Rainwater collected from parking lots is cleaned and sent to local infiltration
Slide 31: Example: Stormwater management for public infrastructure
CLIMATE RESILIENT INFRASTRUCTURE EXAMPLE: STORMWATER MANAGEMENT FOR PUBLIC INFRASTRUCTURE Renovation and extension of the water, sewage and rainwater networks of the city of Jyväskylä, Finland › Pipe systems › Large bespoke 2.2m rainwater chambers, prefabricated in Pipelife factory and shipped direc
Slide 32: Focus areas
FOCUS AREAS › Actively drive end-market exposure of our portfolio to increase addressable market and enhance growth and margins › Portfolio extension from standard systems to differentiation › Development from product to system and solution, e.g. inclusion of smart technologies › Focus development o
Slide 33: Development & strategic ambition
DEVELOPMENT & STRATEGIC AMBITION 33
Slide 34: We have turned pipe into a success story for Wienerberger
WE HAVE TURNED PIPE INTO A SUCCESS STORY FOR WIENERBERGER - FROM UNDERPERFORMANCE TO GROWTH AND PROFITABILITY Stable business – no growth Restructuring & strategic shift to growth 1400 25% › Transformation of the 1300 1272 business towards growth 1200 1149 20% › Improvement of top-line 1097 1100 dev
Slide 35: Portfolio optimization
…AND PORTFOLIO OPTIMIZATION › Optimised the portfolio by exiting Russia, Greece, France and partially Germany › Acquired 8 margin accretive businesses › Invested significantly into the industrial setup to drive efficiency 35
Slide 36: Recent investments into industrial setup
RECENT INVESTMENTS INTO INDUSTRIAL SETUP 36
Slide 37: Clear priorities for the further development of the business
CLEAR PRIORITIES FOR THE FURTHER DEVELOPMENT OF THE BUSINESS INNOVATION Drive innovation with a strong commitment to value adding solutions DIFFERENTIATION OPERATIONAL EXCELLENCE ACQUISITIONS Continuously improve operational Continue as active player in efficiency across the network further industry
Slide 38: Continue as active player in further industry consolidation
GROWTH CONTINUE AS ACTIVE PLAYER IN FURTHER INDUSTRY CONSOLIDATION… With opportunities in moderately And further growth possibilities in consolidated pipe markets areas of strategic relevance GRAVITY PIPES PRESSURE PIPES 1,200,000km 431,000km Smart solutions | Digital Water Accessories Other Other 1
Slide 39: With strong track record in all segments
GROWTH …WITH STRONG TRACK RECORD IN ALL SEGMENTS SCALE deals SCOPE deals Consolidate to be Buy the growth Buy the capability stronger together Scale deals improve cost position, Scope deals that improve the Scope deals that bring new drive near-term earnings growth top-line profile by entering or ca
Slide 40: Innovation example: Smart solutions
INNOVATION EXAMPLE: SMART SOLUTIONS 40
Slide 41: Strongly growing need for solutions that enable smart infrastructure and smart cities
SMART SOLUTIONS STRONGLY GROWING NEED FOR SOLUTIONS THAT ENABLE SMART INFRASTRUETURE AND SMART CITIES Ageing infrastructure Digital water market Europe 18 16 Climate change 14 Demographic shifts 12 10 Financial pressure 8 6 4 Regulatory drivers 2 0 Technology enablers 2021 2022 2023 2024 2025 2026 2
Slide 42: What is smart?
SMART SOLUTIONS WHAT IS SMART? COLLECTING THE DATA CLOUD MONITOR AND CONTROL DATA DRIVEN DECISIONS 42
Slide 43: Application areas: Smart sewage network
SMART SOLUTIONS APPLICATION AREAS: SMART SEWAGE NETWORK Rural village Small pump station Pumping station control Small pump station Line pumpstation Small pump Foreign water station detection Line pump station Treatment plant Transport pump Sewer network station monitoring Plant SCADA Overflow Overf
Slide 44: Application areas: Smart water network
APPLICATION AREAS: SMART WATER NETWORK Groundwater monitoring Smart Monitoring pumping Manholes Smart consumption Network metering monitoring Booster station Control Booster Station Accesssory Manhole Smart Monitoring Monitoring probe Manholes Manholes 44
Slide 45: Application areas: Smart district energy network
APPLICATION AREAS: SMART DISTRICT ENERGY NETWORK Manhole monitoring Field measurement Leakage detection 45
Slide 46: Selected customers
SMART SOLUTIONS SELECTED CUSTOMERS ENERGY WATER INDUSTRIAL MUNICIPAL 46
Slide 47: Smart business today
SMART SOLUTIONS SMART BUSINESS TODAY 15-20% growth p.a. expected 85,000 assets connected & monitored 1,100+ customers 30% SAAS revenue in BeNeLux, 15m EUR revenue Germany, France, UK and Nordics Main application areas Development centers sewage, surface & ground water, in Apeldoorn, NL and drinking
Slide 48: Conclusions
CONCLUSIONS Wii yyyy wienerberger “
Slide 49: Pipe is a significant value contributor to our group
PIPE IS A SIGNIFICANT VALUE CONTRIBUTOR TO OUR GROUP, PROVIDING US WITH… Improved diversification Exposure to structurally Growth and consolidation growing end markets opportunities less cyclical, more Energy transition Scale resilient & Resource-efficient Scope Infrastructure buildings 22% Newbuild
Slide 50: Clear growth ambition after significant value uplift across the portfolio
…WITH CLEAR GROWTH AMBITION AFTER HAVING ACHIEVED SIGNIFICANT VALUE UPLIFT ACROSS THE PORTFOLIO › Organic development & M&A › Strengthen position in existing markets with focus on exposure 0.8 2.0 to growing segments › Energy transition › Resource efficient buildings 1.2 › Climate resilient infrastr