Wienerberger AG · VIE:WIE
Wienerberger — Shareholder Meeting (May 2005)
33 slides from Wienerberger's shareholder meeting presentation, May 12, 2005
Slide 1: 136th Annual General Meeting of Wienerberger AG
136th Annual General Meeting of Wienerberger AG Dr. Wolfgang Reithofer, CEO Congress Center of Messe Wien May 12, 2005 The Year 2004 2004 a year of strategic focusing a great year for Wienerberger 1
Slide 2: Highlights 2004
Highlights 2004 - Free float company - Successful capital increase - Accelerated growth Significant earnings improvement Strategic Developments in 2004 Ö Wienerberger becomes a 85%+ free float company BA-CA and Koramic sell 16.1 mill. shares (24.6%) for € 395 mill. on February 17 Ö Global capital
Slide 3: Accelerated Growth in 2004
Accelerated Growth in 2004 Growth investments 2004: € 543 mill. Koramic Roofing (50%): € 224 mill. thebrickbusiness (UK): € 141 mill. 27 bolt-on projects: € 178 mill. Results for 2004 70% Growth rates 2004 vs. 2003 +61% +38% 35% +21% +14% 0% Revenues EBITDA EBIT PAT 3
Slide 4: Operating Development 2004 in Review
Operating Development 2004 Sleep well: Invest in Bricks. 2004 in Review Global economy positive Central-East Europe: - Growth market with fluctuations Central-West Europe: - Positive, but Germany remains weak North-West Europe: - Strong / stable development USA: - Very strong 4
Slide 5: 2004 Revenues by Segment; EBITDA 2001–2004
2004 Revenues by Segment USA 16% Inv. & Central- Other East Europe 28% 1,758.8 -1% +14% € mill. North- (+ € 214.8m. ) West Europe Central- 36% West Europe 21% EBITDA 2001 – 2004 (in € mill.) 450 405.4 CAGR = 27% 334.6 +21% 300 273.4 196.5 150 0 2001 2002 2003 2004 5
Slide 6: EBITDA Growth 2004 by Segment
EBITDA Growth 2004 by Segment Central-East Europe + € 14,9 mill. Central-West Europe + € 18,6 mill. North-West Europe + € 46,5 mill. USA + € 10,0 mill. Group + € 70,8 mill. Investments & Other - € 18,9 mill. Highlights Central-East Europe Continued strong growth in revenues and earnings
Slide 7: Highlights Central-West and North-West Europe
Highlights Central-West Europe Substantial earnings improvement in all markets Italy: 2nd-highest margin in the Group Switzerland: satisfactory growth Germany: - Residential construction still weak - Sales increase due to 2 Trost hollow brick plants - EBITDA turnaround in roofing Highlights No
Slide 8: Highlights USA
Highlights USA Strong growth rates Housing starts on record level – basis for strong brick demand and full capacity utilization Plant network optimization: construction of „mega plants“ while closing older, smaller plants Further expansion of direct distribution through acquisition of 3 buildi
Slide 9: Profit After Tax 2001–2004 and Income Statement
Profit After Tax 2001 – 2004 (in € mill.) 181.8 Development Net Profit 150 112.9 +61% 86.6 +30% 50 >100% -17.5 -50 2001 2002 2003 2004 Income Statement in € mill. 2003 2004 Chg. % Revenues 1.544,0 1.758,8 +14 EBITDA 334,6 405,4 +21 EBIT 186,1 257,5 +38 Financial results -30,1 -26,1 +13 Profit after
Slide 10: Balance Sheet Ratios; Employees 2001–2004
Balance Sheet Ratios Balance Sheet Ratios 2003 2004 Equity in € mill. 980,4 1.367,2 Net debt in € mill. 675,9 762,4 Equity ratio in % 40,7 47,7 Gearing in % 68,9 55,8 Employees 2001 – 2004 15.000 Growth in Employees ~7% p. a. 12,154 10,872 9,886 10,033 10.000 5.000 0 2001 2002 2003 2004 10
Slide 11: Wienerberger Value Management
Wienerberger Value Management ROCE: CFROI: 9.7% 12.9% (adjusted: 10.3%) (adjusted: 13.4%) (2003: 8.7%) (2003: 12.7%) Ö EVA +68% to € 43.8 mill. Sleep well with Wienerberger. The Wienerberger Share 11
Slide 12: Earnings per Share and Dividend Recommendation
Earnings per Share 2001 – 2004 3,0 Adjusted Earnings per Share (in €) 2,54 2,5 CAGR = 45% 2,01 2,0 1,57 +26% 1,5 1,0 0,83 0,5 0,0 01 02 03 04 Ö Substantial increase despite +8% more shares Note: adjusted for goodwill amortization and non-recurring items Dividend Recommendation for 2004 Dividend: Yie
Slide 13: Share Price Development 2004; Shareholder Structure
Share Price Development 2004 170% 160% WB ATX EU-BM 150% 140% 130% 120% 110% 100% 90% J F M A M J J A S O N D Wienerberger clearly outperformed ATX as well as the Building Materials Index in 2004 Wienerberger Shareholder Structure: Regional Distribution 2%2% 1% 2% 8% United Kingdom 33% USA Austria 1
Slide 14: Corporate Governance & Investor Relations
2004 operating and strategic a new record year! Corporate Governance & Investor Relations Nur einer schläft nie: Wienerberger. 14
Slide 15: Corporate Governance at Wienerberger
Corporate Governance at Wienerberger High standards for management and control "Fair and true view" for shareholders - Detailed and up-to-date information Equal treatment for all shareholders - Information at the same time via website Wienerberger meets all mandatory and voluntary points of
Slide 16: Stock Options and Treasury Stock
Stock Options Annual granting of options since 2002 - For Managing Board and key-managers (2004: 53) - Performance criteria: budgeted net profit Holding period: - 2005: 1/3 - 1 year - from 2006: 2/3 – 1 year, 1/3 – 2 years - from 2006: waiting period reduced from 3 to 2 years Existing options
Slide 17: Risk Report; Shareholder Information
Risk Report Risk management process Risk assessment (through management and external consultants) - Top 15 risks affect < 1/3 of equity - Largest single risk amounts to < 20% of EBITDA Risk avoidance and management Risk monitoring and controlling (once a year) Shareholder Information 2004/2005
Slide 18: Investor Relations 2004
Investor Relations 2004 High priority & one of oldest IR traditions in Austria Highly professional work appreciated by investors (study 10/04) New record in roadshows/conferences in EU and US Coverage by 11 analysts IR Awards 2004 4 top honors at the Austrian Annual Report Awards 2nd at Au
Slide 19: Wienerberger Today; Core Products & Markets
Wienerberger Today A growth company An international leader in bricks and roof tiles Bricks: No. 1 worldwide Roofing systems: No. 2 in Europe With an international shareholder structure Core Products & Markets Hollow bricks Clay roof tiles Pavers Facing bricks (clay & concrete) 19
Slide 20: 2004 Revenues and EBITDA by Product
2004 Revenues by Product Other Roof tiles 0% 18% Hollow Facing Hollow bricks 37% Pavers bricks: 5% bricks: +10% +16% Facing bricks 40% 2004 EBITDA by Product Other Roof tiles -4% 17% Hollow Facing Hollow bricks 48% Pavers bricks: 3% bricks: +22% +39% Facing bricks 36% 20
Slide 21: Wienerberger Brick and Roofing Markets 2005 Europe
Wienerberger Brick Markets 2005 Europe 1 1 Total Europe 1 No. 1 1 2 3 1 1 1 1 1 Market position in 1 hollow bricks and/or facing bricks 1 1 1 1 1 1 1 4 1 Brick markets Export markets bricks Wienerberger Roofing Markets 2005 Europe Roofing Systems 100% Export Koramic 1 JVs Bramac (50%) and/or Tondach
Slide 22: Brick Markets USA; Geographic Portfolio
Wienerberger Brick Markets 2005 USA Market position Wienerberger per state North-East 5% 5 3 1 West Midwest 3 2% 3 17% 2 2 3 1 1 Mississippi 1 1 1 1 South-West 4 23% 6 4 1 Total US No. 2 3 South-East 53% Note: figures with region = brick consumption within USA Strength through Geographic Portfolio 3
Slide 23: The Future of Wienerberger: The Growth Company
Only one who never sleeps: Wienerberger. The Future of Wienerberger Wienerberger The Growth Company Focus on bricks and roof tiles WB is the logical consolidator in the industry Presence on 24 markets (+ 5 export markets) Many opportunities for bolt-on projects with high synergy potential Ö
Slide 24: Integrated Growth Model; Two Pillars of Strategy
Integrated Growth Model Wienerberger Core Business Bricks and Tiles Bolt-on and external projects Free Cash Flow 2004: € 301 mill. Dividends Reduction Growth 45% pay-out ratio Net Debt Note: FCF = available after interest, tax, WC adjustments and maintenance capex The Two Pillars of the Wienerberger
Slide 25: Growth Strategy by Region; Growth Financing
Growth Strategy by Region In c rea s (in e m ets . ) ar k L, et c a ll a rk m U reg e t w ,B ion s ha Ne UKR s) re , US (R Profitable Growth t M rke ) (Ce arke m a A ntr t c o th US al- n an sol wi ast, d N ida ow l- E ort t Gr entra h -W io n (C est ) Growth Financing Ö Annual growth financing: ~ €
Slide 26: Group Goals and Earnings Growth Track Record
The Wienerberger Group Goals Yearly sustainable earnings growth : EBITDA & EPS: min. +10% p.a. Sustainable target level: EBITDA margin: >25% ROCE: >10% Track Record Earnings Growth 405 400 EBITDA 1996 – 2004 in € mill. 327 300 CAGR = 14% 252 268 223 185 193 200 165 141 100 0 1996 1997 1998 199
Slide 27: The Year 2005
The Year 2005 - 1. Quarter 2005 - Outlook Full-Year The year 2005 began on a quiet note as expected. Global Economy in 2005 Ö Global development Slowing dynamics No highlights Sideways movement 27
Slide 28: Wienerberger 2005; Growth Investments 2005e
Wienerberger 2005 Robust development through geographic portfolio Important focus on: - Products & customers - Technology Continuation of profitable growth course Increase in operating earnings Growth Investments 2005e Bolt-on projects (~25): > € 250 mill. Opt. larger acquisitions: € 100 – 2
Slide 29: Growth Projects 2005 Status Q1
Growth Projects 2005 Status Q1 Region/Product # Projects Project Category Central-East Europe 7 Greenfield or expansion Hollow Brick 1 Greenfield or expansion Facing Brick 3 Greenfield or expansion Pavers Central-West Europe 1 Optimization plant network Hollow Brick 1 Acquisition 2 plants Roofing No
Slide 30: 1. Quarter 2005 Results
1. Quarter 2005 Results in € mill. 1-3/2004 1-3/2005 Chg. % Revenues 312,3 333,8 +7 EBIT DA 51,9 54,3 +5 EBIT 21,6 16,1 -25 Profit after Tax 11,0 9,3 -15 1. Quarter 2005 Limited importance for full-year 2005 (share Q1: revenues < 20%, EBITDA < 15%) For full-year 2005 confidence unchanged Goal
Slide 31: 1st Wienerberger Bond: Key Data, Orders and Allocation
1st Wienerberger Bond Key Data Volume: € 400 mill. Coupon: 3.875% p. a. Maturity: 7 years (bullet maturity) Principal interest (7 yrs.): 3.33% p. a. Spread: 0.67% p. a. Yield: 4.00% p. a. 1st Wienerberger Bond Orders and Allocation Orders Allocation 7% 8% 27% 45% 48% Banks Fonds & Insurances Retail
Slide 32: 1st Wienerberger Bond Planned Use of Funds; Strengths
1st Wienerberger Bond Planned Use of Funds - Refinancing of short-term debt 2005 - from acquisition thebrickbusiness (UK) - Reduction dependence on bank financing - Extension of debt maturities profile - Internationalization of debt financing - Introduction to new investor groups Strengths of Wiener
Slide 33: Sleep well. Invest in bricks.
Wienerberger A Solide Investment - Profitability - Profitable Growth mind. ≥ +10% p.a. - Sustainability / Stability geographic portfolio Sleep well. Invest in bricks. Wienerberger Investor & Public Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 T +43 1 60192 - 463, F +43 1 60192 - 46