Wienerberger AG · VIE:WIE
Wienerberger — H1 2010 Earnings Presentation
28 slides from Wienerberger's earnings presentation, Aug 17, 2010
Slide 1: Investors and Analysts Meeting – Half-year Results 2010
Investors and Analysts Meeting Half-year Results 2010 | Wienerberger Markets | Capital Structure and Financing | Strategy and Outlook 2010 Vienna, August 17, 2010 Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independently v
Slide 2: Market Environment Still Challenging / Wienerberger is Well on Track
Market Environment Still Challenging No signs of improvement in macroeconomic environment - High unemployment - High level of sovereign debt -> extensive austerity measures - Increasing uncertainty, volatile consumer confidence Adverse weather effects (harsh winter, heavy rainfalls and flooding)
Slide 3: Key Figures – H1 2010
Key Figures – H1 2010 in € mn 1-6/2009 1-6/2010 Chg. in % Revenues 898.1 825.6 -8 Operating EBITDA 1) 100.6 78.3 -22 Operating EBITDA margin 11.2% 9.5% - Operating EBIT 1) 7.8 -16.7 <-100 Restructuring costs 2) -87.2 0.0 +100 Profit after tax 3) -204.0 -39.4 +81 Net debt 4) 978.6 484.8 -50 CAPEX 91.
Slide 4: Change in Revenues and EBITDA H1 2010 vs. H1 2009
Change in Revenues H1 2010 vs. H1 2009 898.1 -8% -5% +2% 825.6 Volume decline triggered by -5% adverse weather effects Lower average prices due to competitive pricing policy in CEE to increase market shares disproportionate share of (cheaper) commodities response to aggressive pricing by the c
Slide 5: Income Statement
Income Statement (1) in € mn 1-6/2009 1-6/2010 Chg. in % Revenues 898.1 825.6 -8 Operating EBITDA 1) 100.6 78.3 -22 Operating EBITDA margin 11.2% 9.5% - Depreciation -92.8 -95.0 -2 Operating EBIT 1) 7.8 -16.7 <-100 Operating EBIT margin 0.9% -2.0% - Restructuring costs 2) -87.2 0.0 +100 Impairment c
Slide 6: Financial Results / Wienerberger Markets
Financial Results in € mn 1-6/2009 1-6/2010 Chg. in % Income from investments in associates 0.1 -1.5 <-100 Interest and similar income 9.7 8.5 -12 Interest and similar expenses -28.0 -32.1 -15 Other financial results 0.1 -3.5 <-100 Financial results -18.1 -28.6 -58 11 Wienerberger Markets 12
Slide 7: No Signs of Improvement in Market Environment
No Signs of Improvement in Market Environment Harsh winter in Q1 | rainfalls and flooding in Q2 in CEE Central-East Europe: no signs of sustainable recovery Major Western European markets on low level, but - Positive trend in UK, France and Germany - Belgium stable - Further decline in the Nethe
Slide 8: Central-East Europe (2) and (3)
Central-East Europe (2) Results 1-6/2010 Share of Group Share of Group Central-East Europe (in € mn) 1-6/2009 1-6/2010 Chg. in % Revenues 1-6/2010 EBITDA 1-6/2010 Revenues 275.5 233.3 -15 Operating EBITDA 1) 48.5 30.6 -37 28% 39% Operating EBITDA margin 17.6% 13.1% - Operating EBIT 1) 17.3 -1.4 <-10
Slide 9: Central-East Europe: Outlook 2010
Central-East Europe: Outlook 2010 Share of Group Share of Group Central-East Europe (in € mn) 1-6/2009 1-6/2010 Chg. in % Revenues 1-6/2010 EBITDA 1-6/2010 Revenues 275.5 233.3 -15 Operating EBITDA 1) 48.5 30.6 -37 28% 39% Operating EBITDA margin 17.6% 13.1% - Operating EBIT 1) 17.3 -1.4 <-100 1) Be
Slide 10: North-West Europe (1) and (2)
North-West Europe (1) Results 1-6/2010 Share of Group Share of Group North-West Europe (in € mn) 1-6/2009 1-6/2010 Chg. in % Revenues 1-6/2010 EBITDA 1-6/2010 Revenues 380.2 359.6 -5 Operating EBITDA 1) 61.4 49.7 -19 Operating EBITDA margin 16.1% 13.8% - 63% 44% Operating EBIT 1) 28.6 17.5 -39 1) Be
Slide 11: North-West Europe: Outlook 2010
North-West Europe: Outlook 2010 Share of Group Share of Group North-West Europe (in € mn) 1-6/2009 1-6/2010 Chg. in % Revenues 1-6/2010 EBITDA 1-6/2010 Revenues 380.2 359.6 -5 Operating EBITDA 1) 61.4 49.7 -19 Operating EBITDA margin 16.1% 13.8% - 63% 44% Operating EBIT 1) 28.6 17.5 -39 1) Before re
Slide 12: Central-West Europe
Central-West Europe Results 1-6/2010 Share of Group Share of Group Central-West Europe (in € mn) 1-6/2009 1-6/2010 Chg. in % Revenues 1-6/2010 EBITDA 1-6/2010 Revenues 182.4 175.8 -4 12% Operating EBITDA 1) 11.4 9.7 -15 21% Operating EBITDA margin 6.3% 5.5% - Operating EBIT 1) -5.9 -6.6 -12 1) Befor
Slide 13: Central-West Europe: Future Potential
Central-West Europe: Future Potential 10,0 Housing starts (residential) per 1,000 residents 1) 8,0 Western European average 2003-2008 = 5.95 6,0 4,0 5.8 2,0 Potential 2.7 1.7 0,0 2) CH IT GER No single market was “overbuilt“ in the past: - Germany at very low level for years -> undersupply of apar
Slide 14: North America: Outlook 2010
North America: Outlook 2010 Share of Group Share of Group North America (in € mn) 1-6/2009 1-6/2010 Chg. in % Revenues 1-6/2010 EBITDA 1-6/2010 Revenues 76.3 71.5 -6 9% Operating EBITDA 1) -7.9 -0.5 +94 Operating EBITDA margin -10.4% -0.7% - Operating EBIT 1) -19.0 -12.2 +36 1) Before restructuring
Slide 15: Pipelife
Pipelife One of the leading international suppliers of plastic pipe systems - More than 2,800 employees in 28 countries (Europe, USA) - Products for residential construction (water and heating) and the public sector (water supply, sewage, etc.) 50/50 joint venture with Belgian partner Solvay C
Slide 16: Capital Structure and Financing – Strong Balance Sheet
Capital Structure and Financing 31 Strong Balance Sheet Chg. in % in € mn 2007 2008 30/6/2009 2009 30/6/2010 vs. 2009 Equity 1) 2,672.7 2,497.2 2,260.6 2,547.0 2,571.9 +1 Net debt 566.8 890.2 978.6 408.0 484.8 +19 Equity ratio 62% 57% 54% 62% 62% - Gearing 21% 36% 43% 16% 19% - 1) Including non-cont
Slide 17: Cash Flow Statement
Cash Flow Statement in € mn 1-6/2009 1-6/2010 Chg. in € mn Chg. in % Gross cash flow 49.8 63.7 +13.9 +28 Change in working capital 1) -27.1 -51.7 -24.6 -91 Maintenance capex -30.7 -21.6 +9.1 +30 Divestments and other 15.9 -12.7 -28.6 <-100 Free cash flow 7.9 -22.3 -30.2 <-100 Growth investments -60.
Slide 18: Development of Net Debt and Covenants
Development of Net Debt – H1 2010 in Detail +105.2 584.8 +20.4 0.0 +32.5 484.8 +20.1 0.0 - 82.7 408.0 +19.0 -37.7 in € mn 31/12/2009 Gross Total Di- Hybrid Working 31/3/2010 Gross Total Di- Working 30/6/2010 cash flow invest- vestments coupon capital & cash flow invest- vestments capital & ments oth
Slide 19: Strategy and Outlook 2010 – Refocus on Growth
Strategy and Outlook 2010 37 Refocus on Growth Growth through selective Growth through Growth through optimal development / expansion innovative products capacity utilization of markets Plane ground blocks / Dryfix® 30 - 35% through better Expansion in core businesses System solutions capaci
Slide 20: Wienerberger DRYFIX System
Wienerberger DRYFIX System The ultrafast laying of plane ground blocks - Saving of time (30% faster than with thin-bed mortar, 50% faster than with conventional mortar 1.2 cm) - Easier application - No water – no mortar - No tools to be cleaned 39 Wienerberger DRYFIX System: Geographical Expansion
Slide 21: Turnaround in North America / Outlook 2010
Turnaround in North America 2009 Successful 2010 restructuring & Low capacity cost savings Better capacity utilization of 20% utilization of Operating EBITDA 40 - 50% (1-6/2009): € -7.9 mn Operating EBITDA (1-6/2010): € -0.5 mn 41 Outlook 2010 – Visibility Still Limited North America / UK Co
Slide 22: Improvement in Earnings Expected for 2010
Despite Low Visibility and Weak Q1: Improvement in Earnings Expected for 2010 Cost savings Capacity reserves + 10% wall (mothballed) Lower energy prices 30% facade incl. USA (mothballed) No restructuring 30 - 35% from better utilization Increase in earnings 43 Wienerberger Investor Relations Wienerb
Slide 23: Appendix: Wienerberger Group / at a Glance
Appendix: Wienerberger Group Market Positions | Product Groups | Restructuring Program 2009 | Competitive Advantage | Shareholder Structure 45 Wienerberger at a Glance International building materials group - 27 countries + 5 export markets - 227 plants in Europe, North America and India Founded
Slide 24: Wienerberger Brick and Roofing Markets in Europe
Wienerberger Brick Markets in Europe 1 1 Europe (total): No. 1 1 1 1 1 Clay Blocks: 1 2 - No competing international groups 1 - Mainly family businesses (local producers) - Wienerberger the only multinational player 33 1 1 11 1 Facing Bricks: 1 1 1 1 - Family businesses (local producers) as 1 ma
Slide 25: Brick Markets in North America / Product Groups
Wienerberger Brick Markets in North America USA: 5 major players totaling ~65% of market share Quebec Main competitors: Ontario Boral, ACME, HeidelbergCement and 1 CRH Midwest Northeast 20% Canada: Market entry 5 2 3 7% 1 in 2007 West 3 6 2 3 3% 3 1 2 2 1 1 1 1 1 1 6 4 5 Southeast Southwest 6
Slide 26: Margins and Results H1 2010 by Product
Explanation of Margins per Product Group Wall: EBITDA margin: 7% Facade: EBITDA margin: 7% Strong market positions High proportion of trading revenue Latest production technology Locally specific customer requirements (greenfield projects) Strong market decline in the USA Cost leadership
Slide 27: Restructuring Completed / Goodwill Impairments
Restructuring Completed Restructuring costs and impairments of assets 2009: € 153.7 mn - € 52.6 mn cash Restructuring - € 68.8 mn special write-downs program - € 32.3 mn impairments of assets Impairment charges to goodwill in € mn 2009 North America 48.2 North-West Europe 33.7 Central-West Europ
Slide 28: Competitive Advantage / Shareholder Structure
Competitive Advantage of Wienerberger in the Brick Industry Cost Leadership in technology Leadership Economies of scale Fast adaptation of fixed cost base to market conditions Know-How Transfer of engineering know-how across operations Transfer Leverage innovation process and subsequent ro