Wienerberger Ag · VIE:WIE
Wienerberger — Q1 2023 Earnings Presentation
28 slides from Wienerberger's earnings presentation, May 11, 2023
Slide 1: Results Q1 2023
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Slide 2: Cautionary Note Regarding Forward-Looking Statements
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 correctne
Slide 3: Intro Results Q1 2023
berger wiener INTRO RESULTS
Slide 4: Wienerberger Navigates Strongly Through Challenging Macro Environment
Q1 2023 WIENERBERGER NAVIGATES STRONGLY THROUGH CHALLENGING MACRO ENVIRONMENT wienerberger MACRO ENVIRONMENT END MARKETS › Forward-looking purchasing policy New build › Strict cost management based on › Geopolitical instability Downward trend since Q2 2022 softening markets › Prevailing high cost in
Slide 5: Strong Financials Despite Declining Markets Reflect Resilient Business Model
Q1 2023 STRONG FINANCIALS DESPITE DECLINING MARKETS REFLECT RESILIENT BUSINESS MODEL Revenue Operating EBITDA € 1,052 mn € 209 mn (Q1 2022: € 1,157 mn | -9%) (Q1 2022: € 225 mn | -7%) Net result Operating EBITDA margin € 101 mn 19.8% (Q1 2022: € 113 mn | -11%) (Q1 2022: 19.5% | +30bp) 5 5
Slide 6: Revenue vs. End Market Development Q1 2023 vs. Q1 2022
REVENUE VS. END MARKET DEVELOPMENT Q1 2023 VS. Q1 2022 WITH ONLY 9% DECREASE IN REVENUES, WIENERBERGER OUTPERFORMS STRONGLY DECLINING END MARKETS End market development Q1 2023 vs. Q1 2022 100% 90% -9% 80% -11% Wienerberger top line development 70% -20% -28% 60% 50% 40% 30% 20% 10% 0% New build Reno
Slide 7: Pro-active Cost Management to Address Slowing Market Demand
Q1 2023 – COST MANAGEMENT PRO-ACTIVE COST MANAGEMENT TO ADDRESS SLOWING MARKET DEMAND COST MANAGEMENT › Production cost savings › Well prepared & efficient production standstills › Overhead cost savings Strict & disciplined cost management significantly contributes to mitigate volume-related earning
Slide 8: Keeping Cost Inflation Under Control Thanks to Forward-Looking Procurement Strategy
Q1 2023 – PROCUREMENT STRATEGY KEEPING COST INFLATION UNDER CONTROL THANKS TO FORWARD-LOOKING PROCUREMENT STRATGY PROCUREMENT STRATEGY › Ensured availability of needed materials at fixed prices › Strategy allows for gradual & consistent pricing › Enabling Wienerberger to remain a reliable partner al
Slide 9: Sound Self Help Contribution in Q1 2023 € 11 mn
Q1 2023 – GROWTH BY SELF HELP SOUND SELF HELP CONTRIBUTION IN Q1 2023 SELF HELP INITIATIVES EBITDA CONTRIBUTION EBITDA in Q1 contribution coming majorly from › Innovation › Manufacturing Excellence SELF HELP CONTRIBUTION IN Q1 2023: € 11 MN Fully on track to deliver € 135 mn earnings enhancement 9
Slide 10: Financials Q1 2023
FINANCIALS Q1 2023 10
Slide 11: Change in Operational Structure Due to Successful Transformation into System Solutions Provider
NEW OPERATIONAL STRUCTURE CHANGE IN OPERATIONAL STRUCTURE DUE TO SUCCESSFUL TRANSFORMATION INTO SYSTEM SOLUTIONS PROVIDER Wienerberger Building Solutions Wienerberger Piping Solutions North America 54 % of revenue 27 % of revenue 19 % of revenue solutions for entire building envelope water and energ
Slide 12: Strong Financials Despite Declining Markets Reflect Resilient Business Model
Q1 2023 STRONG FINANCIALS DESPITE DECLINING MARKETS REFLECT RESILIENT BUSINESS MODEL External revenues (in € mn) Q1 2023 Q1 2022 Chg. in % Europe East 300.9 348.6 -14 Strong results in a challenging environment Europe West 556.0 600.2 -7 with pressure on demand in our end markets new build and infra
Slide 13: Solid Performance Despite Significant Market Decline – Europe East
Q1 2023 | EUROPE EAST SOLID PERFORMANCE DESPITE SIGNIFICANT MARKET DECLINE EUROPE EAST › System solutions for the building envelope (wall and roof) and for › Extremely high mortgage rates led wastewater and rainwater disposal, sanitation, heating and cooling to significant decline of new build insta
Slide 14: Excellent Start to the Year Reflected in Increased Profitability – Europe West
Q1 2023 | EUROPE WEST EXCELLENT START TO THE YEAR REFLECTED IN INCREASED PROFITABILITY EUROPE WEST › System solutions for the entire building envelope (wall, roof, façade) and › New build showed strong decline for wastewater and rainwater disposal, sanitation, heating and cooling in UK & Germany; sa
Slide 15: Excellent Results Driven by Pipes Business and Synergies from Meridian – North America
Q1 2023 | NORTH AMERICA EXCELLENT RESULTS DRIVEN BY PIPES BUSINESS AND SYNERGIES FROM MERIDIAN NORTH AMERICA › Declined volumes in new build, › Ceramic façade solutions as well as plastic pipe solutions for wastewater with demand higher in the southern and rainwater disposal and drinking water suppl
Slide 16: Stable Revenues in a Strongly Declining Market
REVENUE DEVELOPMENT Q1 2023 STABLE REVENUES IN A STRONGLY DECLINING MARKET -9% organic in € mn -9% Note: Rounding differences may arise from automatic processing of data 16
Slide 17: Excellent Start Driven by Disciplined Cost Management & Forward-Looking Procurement Strategy
OPERATING EBITDA DEVELOPMENT Q1 2023 EXCELLENT START DRIVEN BY DISCIPLINED COST MANAGEMENT & FORWARD-LOOKING PROCUREMENT STRATEGY -7% organic in € mn -7% Note: Rounding differences may arise from automatic processing of data * Including self help initiatives of € 11 mn 17
Slide 18: Outlook 2023
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Slide 19: Outlook 2023: End Markets
OUTLOOK 2023: END MARKETS END MARKET DEVELOPMENT – SCENARIO 2023 CONFIRMED EUROPE NORTH AMERICA INSTABLE GLOBAL MARKET ENVIRONMENT › Ongoing military conflict in Ukraine › Volatile energy markets NEW BUILD -15% -20% › Continuation of high cost inflation RENOVATION -3% -3% › Mortgage rates further up
Slide 20: Outlook 2023: Cost Inflation
OUTLOOK 2023: COST INFLATION KEEPING COSTS WELL UNDER CONTROL THANKS TO FORWARD- LOOKING-PROCUREMENT STRATEGY: EXPECTED COST INFLATION OF <9% IN 2023 FORWARD-LOOKING PROCUREMENT STRATEGY FOR RAW MATERIALS & ENERGY Plastics Raw Materials Ceramics Energy Personnel Shortage of availability not Supply d
Slide 21: Outlook 2023: Energy Forward Buying Policy
OUTLOOK 2023: ENERGY FORWARD BUYING POLICY CONTINUATION OF ENERGY FORWARD BUYING STRATEGY WIENERBERGER ENERGY STRATEGY GAS VOLUMES ENSURED FOR 2023-2026 as of 31 March 2023 Our policy is to buy gas and electricity 93% 88% volumes forward based on our production planning on a continuous basis to 63%
Slide 22: Wienerberger Confirms Operating EBITDA of € >800 mn
EBITDA 2023 BASED ON SCENARIO OF SOFTENING MARKETS IN 2023, WIENERBERGER CONFIRMS OPERATING EBITDA OF € >800 MN 1200 105% 100% ❯ Strongest markets in 2021 reflecting highest market 1,020 1000 100% level defined at 100% 96% 910 93% >800 95% ❯ In 2022 we reached the best result in Wienerberger’s 800 9
Slide 23: Wienerberger Continues Its Sustainable Growth Path in 2023
OUTLOOK 2023 WIENERBERGER CONTINUES ITS SUSTAINABLE GROWTH PATH IN 2023 MARKET GROSS M&A OUTPERFORMANCE MARGIN Through our consistent focus on Existing cost management Significant contributions innovation & systems solutions, measures will from acquisition of we will continue to outperform protect g
Slide 24: Appendix
wienerberger APPENDIX
Slide 25: EBITDA Development Q1 2023
EBITDA DEVELOPMENT Q1 2023 OPERATING EBITDA ONLY 7% DOWN ON EXCEPTIONALLY STRONG PRIOR YEAR EBITDA DEVELOPMENT Reported Operating -10% -7% EBITDA adjustments Q1 2023 Q1 2022 in € mn EBITDA reported 206.3 228.3 Sale of assets1) -1.9 -3.0 Structural adjustments2) 4.2 0.2 Operating EBITDA 208.6 225.5 2
Slide 26: Income Statement
Q1 2023 | INCOME STATEMENT STRONG REVENUES & EBITDA IN STRONGLY DECLINING MARKETS in € mn Q1 2023 Q1 2022 Chg. in % Revenues 1,052.5 1,156.6 -9 Operating EBITDA 208.6 225.5 -7 EBITDA 206.3 228.3 -10 Impairment charges to assets - -13.2 >100 EBIT 138.2 147.1 -6 Financial result -12.7 -11.7 -8 Profit
Slide 27: Cash Flow Statement
Q1 2023 | CASH FLOW STATEMENT SOLID CASH FLOW IN CHALLENGING MARKET ENVIRONMENT in € mn Q1 2023 Q1 2022 Chg. in % Gross cash flow 173.3 209.1 -17 Change in working capital -316.9 -255.5 -24 Maintenance Capex -22.7 -21.4 -6 Divestments and other 1.9 -21.2 >100 Lease payments -14.4 -15.0 +4 Free cash
Slide 28: Contact
CONTACT Wienerberger AG Investor Relations Wienerbergerplatz 1, 1100 Wien wienerberger.com/en/investors investor@wienerberger.com +43 1 60192 10221 FINANCIAL CALENDAR August 10, 2023 Results for the First Half-Year of 2023 November 9, 2023 Results for the First Three Quarters of 2023 28