Wienerberger AG · VIE:WIE
Wienerberger — FY2014 Earnings Presentation
43 slides from Wienerberger's earnings presentation, 2015
Slide 1: Investor and Analyst Presentation Financial Results 2014
Investor and Analyst Presentation Financial Results 2014
Slide 2: Disclaimer
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 correctn
Slide 3: Wienerberger exceeds EBITDA goal
Wienerberger exceeds EBITDA goal ► Wienerberger generates record revenues and exceeds EBITDA goal for 2014 Revenues: € 2,834.5 mn | +6% Operating EBITDA: € 317.2 mn | +19% ► Clay Building Materials Europe Substantial earnings increase in slightly growing market Volume growth in all product g
Slide 4: Highlights 2014
Highlights 2014 ► Restructuring program successfully completed Cost savings 2014: € 17 mn | 2012-2014: € 50 mn ► Acquisition of controlling majority in Tondach Gleinstätten Strong mid-term growth potential and increase of renovation share in revenues | Tondach realizes expected earnings growth i
Slide 5: Highlights Q4 2014
Highlights Q4 2014 ► Improvement of operating EBITDA: +23% Revenues: € 686.0 mn | +9% Operating EBITDA: € 69.1 mn | +23% ► Clay Building Materials Europe generates substantial earnings growth Volume growth in all product groups results in organic earnings improvement Consolidation contributi
Slide 6: Non-recurring impairment charges
Non-recurring impairment charges ► Wienerberger records total impairment charges of € 208 mn Impairments affect: USA, Germany, Italy, Russia, Estonia, Pipelife France and small markets on the periphery Impairment charges to assets: € 100.7 mn Impairment charges to goodwill: € 106.9 mn ► Non-ca
Slide 7: Dividend increase to € 0.15 per share
Dividend increase to € 0.15 per share ► Supervisory Board and Management Board propose increase of dividend from financial year 2014 to the Annual General Meeting: Proposed dividend: € 0.15 per share Increase by 25% compared to prior year ► Strong commitment to dividend policy The generated fr
Slide 8: Clear revenue and earnings increase
Clear revenue and earnings increase Revenue: operative EBITDA 1): € 2,834.5 mn € 317.2 mn (2013: € 2,662.9 mn | +6%) (2013: € 266.5 mn | +19%) Net Debt: Total Investments: € 621.5 mn € 163.1 mn (2013: € 538.9 mn | +15%) (2013: € 106.7 mn | +53%) 1) Adjusted for non-recurring income and expenses 8
Slide 9: Impairment charges in detail
Impairment charges in detail ► USA Assumptions for normalized level of housing activity unchanged at 1.5 mn housing starts | EBITDA potential confirmed at € 60 mn Recovery of residential construction progresses more slowly than expected Mid-term planning assumptions adjusted for revised market
Slide 10: Impairment charges in detail
Impairment charges in detail ► Italy Double digit decline of housing market activity in 2014 | No short-term turnaround expected Italian brick industry shows significant overcapacity Measures to improve profitability are being implemented Impairment charges to goodwill: € 21 mn | Impairment
Slide 11: Results 2014 by Segment
Results 2014 by Segment Revenues: € 2,834.5 mn | +6% Op. EBITDA 1): € 317.2 mn | +19% Clay Building Pipes & Pavers North Holding Materials Europe Europe America & Others 1.200 1,142 1.000 800 574 600 in € mn 467 408 400 236 200 156 67 58 42 11 5 0 -17 -200 CBM Western CBM Eastern P&P Western P&P Eas
Slide 12: Results 2014 by Products
Results 2014 by Products EBITDA-margin improved to 11.2% (PY: 10.0%) 12% 22% 11% 11% 9% EBITDA margin 1.200 974 1.000 800 638 601 600 in € mn 490 400 200 106 130 71 70 91 14 1 0 -35 -200 Wall Roof Facade Pavers Pipes Holding & Others Revenue operating EBITDA Note: Holding & Others includes besides G
Slide 13: Results 2014
mL Wienerberger Results 2014
Slide 14: Revenue increase due to organic volume increase and Tondach contribution
Revenue increase due to organic volume increase and Tondach contribution ► Revenue increases 3.000 by 6% +3% 2,834.5 Organic volume amounts 2.800 +1% to 3% +3% +6% -1% Average selling price 2,662.9 increases by 1% 2.600 -1% FX-effect in € mn Tondach Gleinstätten contribution +3% 2.400 2.200
Slide 15: Slight increase of average prices
Slight increase of average prices ► Clay Building Materials Europe Western Europe: Despite market declines in F, IT and NL price increases above cost inflation due to strong growth dynamics in GB Eastern Europe: Stable to slight improvement of average prices in challenging market environment I
Slide 16: Income statement 2014
Income statement 2014 in € mn 2013 2014 Chg. in % Revenues 2,662.9 2,834.5 +6 Operating EBITDA 1) 266.5 317.2 +19 Operating EBITDA margin 10.0% 11.2% - Depreciation -211.2 -217.0 -3 Operating EBIT 1) 55.3 100.2 +81 Operating EBIT margin 2.1% 3.5% - Impairment charges to assets 0.0 -100.7 -100 Impair
Slide 17: Sale of non-operating assets
Sale of non-operating assets ► Sale of non-operating assets ongoing Sale of non-operating assets ► 2012-2014 non-operating assets worth 120 € 36.5 mn were sold 100 100 ► Until end of 2016 additional ~ € 64 mn to be realized 80 ► Cash inflow 2014: € 14.3 mn 60 (2013: € 13.6 mn) 40 36.5 ► EBITDA-contr
Slide 18: Profit after Tax: -170.0 mn €
Profit after Tax: -170.0 mn € in € mn 2013 2014 Chg. in % EBIT 64.7 -107.4 <-100 Income from investments in associates -2.6 -2.8 -8 Interest income 7.8 8.1 +4 Interest expense -63.8 -61.1 +4 Other financial results -9.2 5.5 >100 Financial results -67.8 -50.2 +26 Profit before tax -3.1 -157.6 <-100 I
Slide 19: EBITDA-Bridge by Segment 2013 vs. 2014
EBITDA 1)-Bridge by Segment 2013 vs. 2014 350 26.6 7.5 1.2 317.2 300 24.7 -1.9 -7.4 +19% 266.5 250 200 in € mn 150 100 50 0 EBITDA CBM CBM P&P P&P North Holding & EBITDA FY 2013 WE EE WE EE America Others FY 2014 1) Adjusted for non-recurring income and expenses Note: Rounding differences may arise
Slide 20: Cash flow development
Cash flow development in € mn 2013 2014 Chg. in € mn Chg. in % Gross cash flow 164.6 225.5 +60.9 +37 Change in working capital 1) 26.2 -10.1 -36.3 <-100 Normal capex -106.0 -121.8 -15.8 -15 Divestments and other 8.0 36.9 +28.9 >100 Free cash flow 92.9 130.6 +37.7 +41 Growth capex 2) -0.7 -18.1 -17.4
Slide 21: Payout Ratio 2014
Payout Ratio 2014 in € mn 2014 Operating Cash Flow 215.5 ► Our dividend policy Cash Flow from investing activities -103.0 In future, 10 – 30 % of Free Cash Flow post hybrid coupon Growth Capex 1) 18.1 will be paid out to shareholders Free Cash Flow 130.6 Payout FCF post Hybrid 2014 Hybrid coupon
Slide 22: Working Capital development
Working Capital development in € mn 2013 2014 Chg. in % Increase/decrease in inventories 34.9 -6.2 <-100 Increase/decrease in trade receivables -4.3 -4.6 -6 Increase/decrease in trade payables 15.2 10.1 -34 Increase/decrease in other net current assets -17.0 -12.5 +26 Changes in non-cash items resul
Slide 23: Total investments 2014
Total investments 2014 in € mn 2013 2014 Chg. in % Normal capex 106.0 121.8 +15 in % of depreciation 54% 60% - Growth capex 0.7 41.3 >100 Thereof plant extension Pipelife USA 0 5.6 +100 Thereof Tondach Gleinstätten 0 35.7 +100 Cash-effective share in purchase price 0 12.5 +100 Non cash-effective sha
Slide 24: Development of net debt
Development of net debt 700 13.7 621.5 97.2 600 538.9 163.1 500 -23.2 44.1 400 in € mn 13.3 300 -225.5 200 100 0 31.12.2013 Gross Cash Flow Paid / Received Hybrid coupon Total Investments Change in Consolidation Working Capital & 31.12.2014 Dividends 1) treasury shares Tondach 2) Others 1) Including
Slide 25: Strong balance sheet
Strong balance sheet in € mn 31/12/2012 31/12/2013 31/12/2014 Chg. in % Equity 1) 2,364 2,254 2,047 -9 Net debt 602 539 622 +15 Equity ratio 57% 54% 52% - Gearing 26% 24% 30% - Change in Net Debt: ► Consolidation of Tondach Gleinstätten 1/7/2014: € 97.2 mn Change in equity: ► Despite impairments, hi
Slide 26: Strong liquidity and balanced financing structure
Strong liquidity and balanced financing structure ► Cash 31/12/2014: € 275.2 mn ► Term structure: 600 500 400 300 in € mn 200 Hybrid Hybrid 100 2007 2014 0 2015 2016 2017 2018 2019 2020 2021 WB Maturities Cash Balance First-Call Date Hybrid Bond ► Targets: Maintain financial discipline Balanced repa
Slide 27: Financing measures 2014
Financing measures 2014 ► Successfull exchange of hybrid bond Further step to protect strong capital structure and balanced financing profile Wienerberger exchanges € 272 mn of existing 2007 hybrid bond for new 2014 hybrid bond Substantial interest in the exchange offer confirms strong confide
Slide 28: Treasury ratios
Treasury ratios Treasury ratios 31/12/2012 31/12/2013 31.12.2014 3) Covenant Net debt / operating EBITDA 1) 2.2 2.0 1.9 <3.50 Operating EBITDA 1)/interest result 2) 5.0 4.8 5.8 >3.75 1) Adjusted for non-recurring income and expenses; Calculated based on 12-month operating EBITDA 2) Calculated based
Slide 29: Wienerberger Segments
mL Wienerberger Wienerberger Segments
Slide 30: Clay Building Materials Western Europe Results 2014
Clay Building Materials Western Europe Results 2014 Ext. revenues Op. EBITDA CBM Western Europe (in € mn) 2013 2014 Chg. In % 2014 2014 External revenues 1,089.9 1,142.0 +5 Operating EBITDA 1) 131.1 155.9 +19 40 % 40% 49% Operating EBITDA margin 12.0% 13.6% - 49 % Operating EBIT 1) 34.4 64.7 +88 1)
Slide 31: Clay Building Materials Eastern Europe Results 2014
Clay Building Materials Eastern Europe Results 2014 Ext. revenues Op. EBITDA CBM Eastern Europe (in € mn) 2013 2014 Chg. in % 2014 2014 External revenues 312.4 408.5 +31 Operating EBITDA 1) 40.2 66.8 +66 Operating EBITDA margin 12.9% 16.4% - 17 49% % Operating EBIT 1) 0.7 19.7 >100 21 % 14 % 1) Adju
Slide 32: Pipes & Pavers Western Europe Results 2014
Pipes & Pavers Western Europe Results 2014 Ext. revenues Op. EBITDA P&P Western Europe (in € mn) 2013 2014 Chg. in % 2014 2014 External revenues 596.4 574.3 -4 Operating EBITDA 1) 65.7 58.3 -11 Operating EBITDA margin 11.0% 10.1% - 40% 18 % 49% 20 % Operating EBIT 1) 39.7 27.5 -31 1) Adjusted for no
Slide 33: Pipes & Pavers Eastern Europe Results 2014
Pipes & Pavers Eastern Europe Results 2014 Ext. revenues Op. EBITDA P&P Eastern Europe (in € mn) 2013 2014 Chg. in % 2014 2014 External revenues 433.1 467.0 +8 Operating EBITDA 1) 34.6 42.1 +22 13 % 16 % Operating EBITDA margin 8.0% 9.0% - 40% 49% Operating EBIT 1) 12.4 20.2 +63 1) Adjusted for non-
Slide 34: North America Results 2014
North America Results 2014 Ext. revenues Op. EBITDA North America (in € mn) 2013 2014 Chg. in % 2014 2014 External revenues 224.7 236.4 +5 8% 4% Operating EBITDA 1) 13.2 11.2 -15 Operating EBITDA margin 5.9% 4.8% - 40% 49% Operating EBIT 1) -9.3 -11.2 -21 1) Adjusted for non-recurring income and exp
Slide 35: Outlook 2015
mL Wienerberger Outlook 2015
Slide 36: Slight increase in housing starts in Europe | Growth in USA
Slight increase in housing starts in Europe | Growth in USA Wienerberger Management assessment: Single- and two-family housing starts 2015 Mountain Region Midwest Mid-Atlantic +7% +5% +5% +9% +1% -2% +2% +1% -2% +8% -5% -3% +3% Southeast Source: Management estimate (housing starts) -7% +5% Market gr
Slide 37: Moderate growth in RMI spendings
Moderate growth in RMI spendings ► Euroconstruct estimate: Repair, maintenance and improvement spending in residential construction in 2015 +3% +1% +3% +3% +3% 0% +3% -2% +1% +3% +1% +1% +3% Market growth (>2 %) Stable development Market decline (<-2 %) Source: Euroconstruct November 2014 (RMI spend
Slide 38: Clay Building Materials Europe: Outlook 2015
Clay Building Materials Europe: Outlook 2015 ► Stable to slightly positive development of European residential construction activity ► Moderate volume increase ► Price increases in line with cost inflation ► Implementation of measures to optimize cost structure and improve efficiency of internal pro
Slide 39: Pipes & Pavers Europe: Outlook 2015
Pipes & Pavers Europe: Outlook 2015 ► Pipelife Flat development of Nordic markets on a good level | Currency devaluation burdens earnings International project business with recovery due to new orders in Q4 14 Implementation of optimization measures in France and the Netherlands Slight earni
Slide 40: North America: Outlook 2015
North America: Outlook 2015 ► Bricks Continued market recovery in new residential construction of single- and two-family houses in the USA and market stabilization in Canada Positive development of demand for bricks Continuation of a challenging price environment in some regional markets ► Pla
Slide 41: Wienerberger Group: Outlook 2015
Wienerberger Group: Outlook 2015 Group-EBITDA ~ € 350 mn Tondach Contribution ~ € 8 mn consolidation effect in H1 15 (part of EBITDA-target) Real Estate Sales ~ € 10 mn EBITDA contribution (part of EBITDA-target) Price | Costs ~ 1.0% price increase | ~ 1.5% cost inflation Depreciation ~ € 220 mn Int
Slide 42: Wienerberger is geared towards growth
Wienerberger is geared towards growth We have geared Wienerberger towards growth We have repositioned Wienerberger We have overcome the crisis RESTRUCTURING REPOSITIONING GROWTH 42
Slide 43: Thank you for your attention!
Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerberg City, Wienerbergstrasse 11 T +43 1 60192 10221 / F +43 1 60192 10425, investor@wienerberger.com / www.wienerberger.com Thank you for your attention!