Wienerberger Ag · VIE:WIE
Wienerberger — Investor Day (October 2023)
45 slides from Wienerberger's investor day presentation, Oct 11, 2023
Slide 1: Energy- and Water Management at Wienerberger
ENERGY- AND WATER MANAGEMENT AT WIENERBERGER
Slide 2: Our Living Space Is Changing
OUR LIVING SPACE IS CHANGING 2
Slide 3: Climate Change: Long Dry Periods
CLIMATE CHANGE LONG DRY PERIODS 3
Slide 4: Climate Change: Heavy Rain
CLIMATE CHANGE HEAVY RAIN 4
Slide 5: Sinking Ground Water Levels
SINKING GROUND WATER LEVELS CHANGING OPERATING REQUIREMENTS 5
Slide 6: Rising Temperatures: Urban Heat Islands
RISING TEMPERATURES URBAN HEAT ISLANDS 6
Slide 7: Energy: Shortage & Uncertainty
ENERGY SHORTAGE & UNCERTAINTY 7
Slide 8: Environmental Changes Impact Our Customers
ENERGY & WATER MANAGEMENT ENVIRONMENTAL CHANGES IMPACT OUR CUSTOMERS RESIDENTAL & COMMERCIAL MUNICIPALITIES BUILDINGS 8
Slide 9: Holistic Solutions for Residential & Commercial, Municipalities
PRODUCT TO SOLUTION HOLISTIC SOLUTIONS FOR RESIDENTAL & COMMERCIAL MUNICIPALITIES BUILDINGS Value-Adding solutions Focus on public infrastructure for for existing building stock water- & wastewater management and new-built Example of renovation Example from region North – solutions infrastructure wa
Slide 10: Holistic Solutions for Residential & Commercial Buildings
PRODUCT TO SOLUTION HOLISTIC SOLUTIONS FOR RESIDENTAL & COMMERCIAL MUNICIPALITIES BUILDINGS Value-Adding solutions Focus on public infrastructure for for existing building stock water- & wastewater management and new-built Example of renovation solutions 10
Slide 11: EU Green Deal: Tailwind for Renovation of Buildings
EUROPEAN HOUSING ENVIRONMENT EU-GREEN-DEAL: TAILWIND FOR RENOVATION OF BUILDINGS EU buildings stock responsible for EU-Green-deal >40% 55% CO2 reduction until 2030* of final energy consumption and 36% No additional CO2 in 2050 of greenhouse gas emissions * Baseline year 1990 11
Slide 12: Status of the European Housing Stock
EUROPEAN HOUSING ENVIRONMENT STATUS OF THE EUROPEAN HOUSING STOCK 131 mn total European housing stock 12
Slide 13: 70% of European Houses Are Energy Inefficient
EUROPEAN HOUSING ENVIRONMENT 70% OF EUROPEAN HOUSES ARE ENERGY INEFFICIENT AND IN NEED OF RENOVATION 92 mn houses in need of renovation 13
Slide 14: 27% of European Houses Have Energy Label E/F
EUROPEAN HOUSING ENVIRONMENT 27% OF EUROPEAN HOUSES HAVE AN ENERGY LABEL OF E/F AND ARE IN DESPERATE NEED OF RENOVATION 35 mn houses in extremely poor condition 14
Slide 15: ~80% of a Building's Emissions Are Generated in Operation
LEVERS TO IMPROVE ENERGY EFFICIENCY ~80% OF A BUILDING'S EMISSIONS ARE GENERATED IN THE OPERATION OF THE BUILDING 724 291 158 140 135 With our solutions we are addressing the core levers to improve the energy performance of buildings Source: European Climate Foundation 2020: Zero Carbon Buildings 20
Slide 16: Cohesion Policy Support for Energy Efficiency and Renovation
EUROPEAN GREEN DEAL IN ACTION COHESION POLICY SUPPORT FOR ENERGY EFFICIENCY AND BUILDING RENOVATION 66 Netherlands Mandatory € bn UK minimum ‘C‘ Improve energy label for offices: Poland will be provided efficiency in €1bn subsidies for by EU for energy 2025-2028: £6bn energy-efficient renovation ren
Slide 17: Driving the Energy Transition Through a Holistic Renovation Approach
ENERGY & WATER MANAGEMENT DRIVING THE ENERGY TRANSITON THROUGH A HOLISTIC RENOVATION APPROACH BEFORE AFTER A A B B C C D D E E F F G G
Slide 18: Holistic Renovation Approach: Before, House Level F
ENERGY & WATER MANAGEMENT DRIVING THE ENERGY TRANSITON THROUGH A HOLISTIC RENOVATION APPROACH BEFORE House Level F 34 MWh energy € 6,050 p.a. 150 m³ fresh water € 1,000 p.a. Note: Consumption for 150m2 standard Belgian house, gas and electricity mix based on 2023 prices 18
Slide 19: Optimizing Today's Portfolio for Tomorrow's Holistic Solutions
OUR SYSTEM SOLUTIONS OPTIMIZING TODAY'S PORTFOLIO FOR TOMORROW'S COST- EFFICIENT AND HOLISTIC SOLUTIONS 1 1. Ceramic accessories 13. Landscaping elements 2 3 2. Roof tiles with snow 14. Water filtration unit hooks 15. Wastewater 3. Roof underlay 16. Fresh water supply 4 4. Clay blocks 17. Sto
Slide 20: Iterative Design Process for Improved Cost Effectiveness
ENERGY & WATER MANAGEMENT ITERATIVE DESIGN PROCESS TO ALLOW FOR IMPROVED COST EFFECTIVNESS 1. Optimization of building 2. Calculation of potential envelope heat losses Designing adequate insolation Determine remaining peak heat components in wall, roof and floor. losses of the building Our goal: low
Slide 21: Leveraging Total Solutions Portfolio to Improve Cost Effectiveness
ENERGY & WATER MANAGEMENT LEVERAGING TOTAL SOLUTIONS PORTFOLIO TO IMPROVE COST EFFECTIVENESS BEFORE AFTER House Level F House Level A 34 MWh energy 6 MWh energy € 6,050 p.a. € 0–200 p.a. 150 m³ fresh water 75 m³ fresh water € 1,000 p.a. € 500 p.a. Note: Consumption for 150m2 standard Belgian house,
Slide 22: Addressing the Energy Transition Needs of the Building Sector
ENERGY & WATER MANAGEMENT ADDRESSING THE ENERGY TRANSITION NEEDS OF THE BUILDING SECTOR ~ 85% less energy C02 neutral consumption @ increased comfort Energy self sufficient Change from fossil fuels to green Energy cost electricity neutral 50 % reduction in fresh Increased resale water consumption va
Slide 23: Way Forward
ENERGY & WATER MANAGEMENT WAY FORWARD Expanded our product- Serving both the rapidly Through integrated end- based offerings into growing renovation and to-end solution, including affordable and holistic new-build markets operation, we optimize the solutions addressing the overall cost effectiveness
Slide 24: Holistic Solutions: Infrastructure Water Management
PRODUCT TO SOLUTION HOLISTIC SOLUTIONS FOR RESIDENTAL & COMMERCIAL MUNICIPALITIES BUILDINGS Value-Adding solutions Focus on public infrastructure for for existing building stock water- & wastewater management and new-built Example from region North – infrastructure water management 24
Slide 25: From Pipes to Water Management: Example of the Region North
EXAMPLE REGION NORTH FROM PIPES TO WATER MANAGEMENT: EXAMPLE OF THE REGION NORTH 25
Slide 26: Wienerberger Pipe Activities in the North
EXAMPLE REGION NORTH WIENERBERGER PIPE ACTIVITIES IN THE NORTH #1 €400 mn market position on revenue 2022 infrastructure pipes 7 4 plastic pipe production locations for extrusion plants pumping stations and special chambers
Slide 27: Focus on Water Management to Grow the Business
EXAMPLE REGION NORTH FOCUS ON WATER MANAGEMENT TO GROW THE BUSINESS … Leveraging our strong #1 position on …to grow into a holistic provider for infrastructure pipe solutions… municipal water management › Trusted high quality brand with the municipalities › Highly complementary business to our core
Slide 28: An Attractive and Expanding Market Segment
EXAMPLE REGION NORTH … IN AN ATTRACTIVE AND EXPANDING MARKET SEGMENT Growing (re)investment need in the water INVESTMENTS IN WATER & SEWAGE segment driven by INFRASTRUCTURE in € bn € 5bn › Climate adaptation › Ageing & underinvested infrastructure › Regulatory requirements € 3.4bn › Growing populati
Slide 29: Ageing Infrastructure Networks
EXAMPLE REGION NORTH AGEING INFRASTRUCTURE NETWORKS … 50% 40% Over 50% of the sewage network is older than 40 30% years, with almost 40% 20% of the entire network being 10% build in the 1960s and 70s. 0% <1940 1940-1959 1960-1979 1980-1999 >2000 Note: Sewage network in kilometers of Sweden, Norway a
Slide 30: Current and Historic Underinvestment
EXAMPLE REGION NORTH … CURRENT AND HISTORIC UNDERINVESTMENT … Current network renewal rate of less than 1% CURRENT IMPLIED is significantly below long-term sustainable RENEWAL RATE REINVESTMENT CYCLE and self-identified reinvestment requirements. 0.5% >200y 0.8% >120y 0.7% >140y Source: Svensk Vatte
Slide 31: Growing Population and Urbanization
EXAMPLE REGION NORTH … GROWING POPULATION AND URBANIZATION … 28 88% 87% 27 86% 26 85% Growing population and 25 84% a high degree of urbanization 83% put additional pressure on the 24 82% existing water infrastructure in 23 81% the Nordics. 22 80% Population (lhs) Degree of urbanization (rhs) Source
Slide 32: Climate Adaptation Requirements
EXAMPLE REGION NORTH … CLIMATE ADAPTATION REQUIREMENTS … Climate adaptation investments into the networks required in order to address › more frequent extreme rainfall and seasonal variations › longer periods of droughts in-between rain periods › increase in surface water and flood-related damage to
Slide 33: Regulatory Drivers
EXAMPLE REGION NORTH … REGULATORY DRIVERS … Stricter regulations on EU (e.g. zero pollution 2050) and national levels to safeguard the quality of water require adaptations of the existing infrastructure › Stricter requirements on e.g. › overflow events › foreign water › water purification › Monitori
Slide 34: Increased Reinvestment Requirements and Structurally Growing Market
EXAMPLE REGION NORTH … LEAD TO INCREASED REINVESTMENT REQUIREMENTS AND A STRUCTURALLY GROWING MARKET INVESTMENTS IN WATER & SEWAGE INVESTMENTS IN WATER & SEWAGE INFRASTRUCTURE in % INFRASTRUCTURE PER YEAR in € bn New Development 32% Investment target:€ 5bn p.a. Reinvestment 68% 2017 2018 2019 2020 2
Slide 35: Value Creation Path
EXAMPLE REGION NORTH VALUE CREATION PATH SMART SOLUTIONS Deep insights & CONNECTED Digital water PRODUCTS Providing insight into the FULL SYSTEMS Remote monitoring performance of the and control network. Solutions e.g. for Pumping stations, leakage & foreign water PRODUCTS special chambers, tanks, P
Slide 36: Attractive Margin Profile
EXAMPLE REGION NORTH ATTRACTIVE MARGIN PROFILE PIPE WATER MANAGEMENT TRADITIONAL BUSINESS NEW BUSINESS Pipes & Fittings Pumping stations Bespoke chambers Accessories | Monitoring › Water & sewage pipes & fittings › Pumping stations for › Valve chambers › Water accessories › Manholes sewage and rainw
Slide 37: Growing Platform via Organic Investment and Targeted M&A
EXAMPLE REGION NORTH GROWING PLATFORM BUILT VIA ORGANIC INVESTMENT AND TARGETED M&A Factory extension Sweden Infra water management Acquisition of InterAct, NL capabilities for Sweden + Monitoring & Control and Acquisition of QPS, NO Norway Smart Solutions for the Group Added capabilities in pumping
Slide 38: Way Forward
EXAMPLE REGION NORTH WAY FORWARD › Extended our core business into infrastructure water management solutions to grow our addressable market › Position Wienerberger as a trusted solution provider for our end customers › Continue to build the platform via buy and build strategy 38
Slide 39: Pipe Solutions Are Key Contributor to Portfolio Transformation
WIENERBERGER PIPE SOLUTIONS PIPE SOLUTIONS ARE KEY CONTRIBUTOR TO PORTFOLIO TRANSFORMATION… 2012 2022 › Pipe activities with large Infrastructure Infrastructure exposure to less cyclical 22% 15% infrastructure and renovation markets › End markets with sustainable Newbuild growth expectations Newbuil
Slide 40: Pipe Solutions: Product to Solution
WIENERBERGER PIPE SOLUTIONS: PRODUCT TO SOLUTION …WITH AN ATTRACTIVE BUSINESS EXPOSURE TO CREATE SUSTAINABLE VALUE Large exposure to infrastructure and LESS CYCLICAL END renovation markets leading to less MARKET EXPOSURE EXTERNAL cyclical business exposure DRIVERS Growing end markets Megatrends arou
Slide 41: Optimization of Industrial Setup
WIENERBERGER PIPE SOLUTIONS: THREE PILLARS FOR GROWTH OPTIMIZATION OF INDUSTRIAL SETUP CONSOLIDATION OF MANUFACTURING Sweden, Finland & Ireland NETWORK BY COMBINING SMALLER PLANTS INVESTMENTS IN AUTOMATION LEADING TO Norway, Sweden, Estonia, Poland, EFFICIENCY IMPROVEMENTS Germany, Austria, the Neth
Slide 42: Level of Value Creation: Customer Proximity and Innovation
WIENERBERGER PIPE SOLUTIONS: THREE PILLARS FOR GROWTH INCREASED CUSTOMER PROXIMITY AND VALUE CREATION THROUGH INNOVATION AND SYSTEM SOLUTIONS SMART SOLUTIONS LEVEL OF VALUE CREATION Monitoring & Control Data driven decisions FULL SYSTEMS Prefabricated & Plug&Play solutions PRODUCTS Pipes & Fittings
Slide 43: Strong M&A Track Record for Pipe Solutions in Europe
WIENERBERGER PIPE SOLUTIONS: THREE PILLARS FOR GROWTH STRONG M&A TRACK RECORD FOR PIPE SOLUTIONS IN EUROPE Our acquisitions since 2016 Water management & Smart solutions › Finland: Talokaivo › Norway: Isoterm › Netherlands: InterAct › Sweden: WIDECO › Norway: QPS In-house & Renovation solutions › Ne
Slide 44: Piping Revenue Expansion Through Industrial Setup, Organic Growth and M&A
WIENERBERGER PIPE SOLUTIONS: THREE PILLARS FOR GROWTH PIPING REVENUE EXPANSION THROUGH OPTIMIZED INDUSTRIAL SETUP, ORGANIC GROWTH AND M&A VALUE ACCRETIVE M&A LEVEL OF VALUE CREATION ORGANIC GROWTH THROUGH INNOVATION AND SYSTEM SOLUTIONS OPTIMIZATION OF INDUSTRIAL SETUP PROXIMITY TO CUSTOMER 44
Slide 45: Piping Revenue Expansion: Target 2026 Revenue
WIENERBERGER PIPE SOLUTIONS: THREE PILLARS FOR GROWTH PIPING REVENUE EXPANSION THROUGH OPTIMIZED INDUSTRIAL SETUP, ORGANIC GROWTH AND M&A Revenue VALUE ACCRETIVE M&A Target 2026 LEVEL OF VALUE CREATION € 2bn ORGANIC GROWTH THROUGH INNOVATION AND SYSTEM SOLUTIONS OPTIMIZATION OF INDUSTRIAL SETUP PROX