Wienerberger Ag · VIE:WIE
Wienerberger — Shareholder Meeting (2022)
48 slides from Wienerberger's shareholder meeting presentation, 2022
Slide 1: 153rd Annual General Meeting Wienerberger AG
153rd ANNUAL GENERAL MEETING WIENERBERGER AG
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: Today
Slide 4: World of Wienerberger: Respect, Creativity, Passion, Trust
world of wienerberger Respect Creativity Passion Trust #wecareandwecommit 4
Slide 5: Strong values as basis for all our entrepreneurial activities
WIENERBERGER TODAY STRONG VALUES AS BASIS FOR ALL OUR ENTREPRENEURIAL ACTIVITIES Our mission Our values › We connect › At the heart of the world of wienerberger › Respect, Creativity, Passion and Trust people, planet emanate the interactions between the play a central role in these relationships. &
Slide 6: A world of innovation & sustainability
WIENERBERGER TODAY WELCOME TO THE world of wienerberger A WORLD OF INNOVATION & SUSTAINABILITY Innovation ESG Growth Innovation – we change our industry ESG – core of our strategy We strongly outperformed our markets in the last 10 years thanks to our continuous › One of the highest innovation rates
Slide 7: Innovation + Sustainability = Strong organic growth
world of wienerberger Innovation + Sustainability = Strong organic growth #thenewwienerberger 7
Slide 8: Resilience through diversified portfolio
WIENERBERGER TODAY RESILIENCE THROUGH DIVERSIFIED PORTFOLIO BY END MARKETS BY GEOGRAPHY 2012 2021 2012 20211) Infrastructure North America 22% 13% Infrastructure North America 15% 8% Eastern Europe New Build 27% Renovation Residential Western 20% New Build Western Europe 49% Residential Europe Easte
Slide 9: Successful transformation of product portfolio
WIENERBERGER TODAY SUCCESSFUL TRANSFORMATION OF PRODUCT PORTFOLIO WITH FOCUS ON INNOVATION & SYSTEM SOLUTIONS 1 › Today, our portfolio ranges from roof and wall systems 2 3 to façade solutions for the entire building envelope… › …and includes complete solutions for safe and secure energy and water s
Slide 10: We reliably provide significant shareholder return
WIENERBERGER TODAY WE RELIABLY PROVIDE SIGNIFICANT SHAREHOLDER RETURN TOTAL SHAREHOLDER RETURN DIVIDENDS PER SHARE2) GROWTH 600 +546% CAGR1) 0.75 +23% +379% 0.12 in € per share 100% 100 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2021 Wienerberger STOXX Europe 600 Construction & Materials
Slide 11: Transparent, timely and pro-active communication
WIENERBERGER TODAY TRANSPARENT, TIMELY AND PRO-ACTIVE COMMUNICATION …with shareholders and the Interactions with …within the company financial market >1,100 shareholders in 2021 › Variety of communication formats on a › Frequent updates to shareholders and the regular basis for all employees to fost
Slide 12: Uniquely positioned: renovation & infrastructure growth opportunities
WIENERBERGER TODAY WE ARE UNIQUELY POSITIONED TO CAPITALIZE ON THE TWO FUTURE GROWTH OPPORTUNITIES: RENOVATION & INFRASTRUCTURE Renovation Water & Energy Management Sustainable system solutions for the Innovative solutions building envelope infrastructure Perfectly positioned for future › We increas
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Slide 14: Review of 2021 – a year of continuing strong headwinds
MACRO ENVIRONMENT 2021 REVIEW OF 2021 – A YEAR CHARACTERIZED BY CONTINUING STRONG HEADWINDS Strong demand after a muted start into the year Shortages of raw material High need for our infrastructure & & increased input costs building envelope solutions Volatile energy We have remained a reliable pri
Slide 15: We mastered another challenging year with swift measures
WIENERBERGER ACTIONS WE MASTERED ANOTHER CHALLENGING YEAR WITH SWIFT MEASURES AND REMAINED A TRUSTED PARTNER FOR OUR CUSTOMERS Reinforced local Sustainable purchasing Long-term energy business model policy for raw materials purchasing strategy including a more diversified Continuous availability Suc
Slide 16: FY 2021 Record Results
FY 2021 RECORD RESULTS Revenue EBITDA € 3,971 mn € 694 mn (2020: € 3,355 mn | +18%) (2020: € 558 mn | +24%) Free cash flow EBITDA margin € 421 mn 17.5% (2020: € 397 mn | +6%) (2020: 16.6% | +85bp) 16
Slide 17: Value creation by acquisitions & divestments
GROWTH THROUGH M&A DONE IN 2021 VALUE CREATION BY ACQUISITIONS & DIVESTMENTS FULLY IN LINE WITH OUR STRATEGIC PRIORITIES Acquisition of Acquisition of Acquisition of Divestments FloPlast & Cork Plastics Struxura Meridian Brick Increasing our renovation exposure Tackling the shortage of skilled labor
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Slide 19: Sustainable growth with clear ESG targets in place
WIENERBERGER STRATEGY 2023 SUSTAINABLE GROWTH WITH CLEAR ESG TARGETS IN PLACE All activities are subject to our ESG objectives Organic growth Efficiency enhancement Inorganic growth through through through INNOVATION OPERATIONAL M&A AND & DIGITALIZATION EXCELLENCE PORTFOLIO OPTIMIZATION Growth areas
Slide 20: Organic growth through innovation & digitalization
WIENERBERGER STRATEGY 2023 ORGANIC GROWTH THROUGH INNOVATION & DIGITALIZATION Organic Innovative products & Growth system solutions EBITDA MARGIN >800 bp 17.5% › Goal to remain the share of innovative products above 1/3 of total revenues 9.2% › Goal to increase the share of system solutions to 1/4 o
Slide 21: Efficiency enhancement through operational excellence
WIENERBERGER STRATEGY 2023 EFFICIENCY ENHANCEMENT THROUGH OPERATIONAL EXCELLENCE Operational Continuous improvement as EARNINGS ENHANCEMENTS Excellence part of Wienerberger’s DNA › Earnings and efficiency enhancements of >€ 150mn additional EBITDA in 2018-2021 › >1,400 initiatives well on track in
Slide 22: Inorganic growth through M&A and portfolio optimization
WIENERBERGER STRATEGY 2023 INORGANIC GROWTH THROUGH M&A AND PORTFOLIO OPTIMIZATION M&A and Strong track record STRONG M&A Portfolio Optimization of value creating M&A TRACK RECORD › M&A in Europe & North America Ø5x › Systematic optimization of portfolio in terms of EV/EBITDA multiple growth prospec
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Slide 24: We have set ourselves ambitious 2023 ESG targets
WE COMMIT TO HIGHEST ESG STANDARDS WE HAVE SET OURSELVES AMBITIOUS 2023 ESG TARGETS Environment Social Governance Decarbonization Diversity Committed to highest national -15% CO2e1) emissions vs. 2020 >15% females in Senior Management [2021: 15%] >30% females in white collar positions [2021: 33%] an
Slide 25: We fully commit to EU targets
DECARBONIZATION WE FULLY COMMIT TO EU TARGETS short-term target 2030 target 2050 target 2023 PROGRAM EU-FIT FOR 55 EUROPEAN UN 2030 AGENDA GREEN DEAL Committed to -15% reduction of specific -40% reduction of specific carbon neutrality in line with CO2 emissions vs. 2020 CO2 emissions vs. 2020 the Eu
Slide 26: Energy demand & supply: energy policy embedded in ESG strategy
DECARBONIZATION ENERGY DEMAND & SUPPLY: WIENERBERGER ENERGY POLICY EMBEDDED IN ESG STRATEGY CLEAR GOALS: LESS ENERGY DEMAND, LESS CO2 CONSUMPTION, GREATEST POSSIBLE AVAILABILITY FORWARD-LOOKING ENERGY MANAGEMENT ESG CAPEX New › ESG CAPEX focused on new technologies technologies aimed at decarbonizat
Slide 27: Strategically flexible in choosing our energy source
DECARBONIZATION ENERGY DEMAND & SUPPLY: WE ARE STRATEGICALLY FLEXIBLE IN CHOOSING OUR ENERGY SOURCE ACTIVE INVESTIGATION OF ALTERNATIVES PRACTICAL EXAMPLE – › No uniform European energy strategy Fully electrified brick production: › Country-by-country approach First CO2 neutral › Based on availabili
Slide 28: Fighting climate change together with customers
OUR CONTRIBUTION TO SUSTAINABILITY WE FIGHT AGAINST CLIMATE CHANGE TOGETHER WITH OUR CUSTOMERS BY PROVIDING THE RIGHT SOLUTIONS WHY? TO FIGHT WATER SCARCITY & FLOODINGS, SUPPORT USAGE OF RENEWABLE ENERGY AND CREATE AN EMISSION FREE LIVING SPACE Water Management Energy Management Sustainable Living O
Slide 29: Our contribution to climate change
SUSTAINABLE PRODUCTS + SUSTAINABLE COMPANY = wienerberger OUR CONTRIBUTION TO CLIMATE CHANGE ….AND REDUCE OUR WE IMPROVE OUR CUSTOMERS‘ CO2 FOOTPRINT… OWN CO2 EMISSIONS With our solutions we improve the thermal Leading to annual CO2 savings -40% CO2 emissions efficiency of the building envelope by 8
Slide 30: Financials
Slide 31: Record results in a once again challenging year
FY 2021 RECORD RESULTS IN A ONCE AGAIN CHALLENGING YEAR › 18% above previous year at new record level Revenue › Positive market sentiment led to very high demand across almost all product Growth groups and countries › Innovation as core driver of organic growth › € 421 mn free cash flow generated du
Slide 32: Strong growth across all three business units in 2021
FY 2021 | BUSINESS SEGMENTS STRONG GROWTH ACROSS ALL THREE BUSINESS UNITS IN 2021 Wienerberger Building Solutions Wienerberger Piping Solutions North America WBS WPS NOAM in € mn 2021 2020 Chg. in % in € mn 2021 2020 Chg. in % in € mn 2021 2020 Chg. in % External revenue 2,300.5 2,092.1 +10 External
Slide 33: Disciplined capital allocation management with attractive paybacks
CAPITAL ALLOCATION 2021 DISCIPLINED CAPITAL ALLOCATION MANAGEMENT WITH ATTRACTIVE PAYBACKS MAINTENANCE CAPEX ESG & GROWTH CAPEX M&A INVESTMENTS € 120 mn € 159 mn € 467 mn EBITDA contribution visible through EBITDA contribution of € 60 mn self help program in 2021 € 42 mn expected in 2022 O
Slide 34: Earnings & efficiency enhancement program on track
GROWTH BY SELF HELP EARNINGS & EFFICIENCY ENHANCEMENT PROGRAM FULLY ON TRACK TO FURTHER IMPROVE OPERATING PERFORMANCE PROGRAM EARNINGS & EFFICIENCY › More than 1,400 initiatives well on track to deliver organic growth and operational excellence ENHANCEMENTS TRACK RECORD › Earnings and efficiency enh
Slide 35: Energy costs kept under control; forward buying policy
ENERGY FORWARD BUYING POLICY WE HAVE MANAGED TO KEEP ENERGY COSTS WELL UNDER CONTROL AND REMAINED A RELIABLE & PREDICTABLE PARTNER TO OUR CUSTOMERS WIENERBERGER ENERGY STRATEGY ENERGY OUTLOOK FOR THE COMING YEARS: Energy volumes ensured for 2022-2024 (as of 31 March 2022) Our policy is to buy gas an
Slide 36: Income statement
INCOME STATEMENT EXCELLENT OPERATIONAL PERFORMANCE TRANSLATES INTO STRONG PROFIT GENERATION in € mn 1-12/2021 1-12/2020 Chg. in % Revenues 3,971.3 3,354.6 +18 EBITDA LFL 670.8 558.7 +20 EBITDA 694.3 558.0 +24 Operating EBIT 431.2 305.1 +41 Impairment charges to assets 0.0 -22.3 >100 Impairment charg
Slide 37: Cash flow statement
CASH FLOW STATEMENT EXCELLENT CASH CONVERSION DRIVEN BY STRONG OPERATIONAL PERFORMANCE in € mn 1-12/2021 1-12/2020 Chg. in € mn Chg. in % Gross cash flow 566.0 440.6 125.5 +28 Change in working capital -55.5 64.1 -119.6 <-100 Maintenance capex -120.4 -125.9 5.5 +4 Divestments and other 80.2 63.7 16.
Slide 38: Strong performance and balance sheet ratios
BALANCE SHEET OUR FOCUS ON LONG-TERM VALUE CREATION IS REFLECTED IN STRONG PERFORMANCE AND BALANCE SHEET RATIOS in € mn 31.12.2021 31.12.2020 Chg. in % ROCE 12.2% 8.9% +333bp Outperforming all our long-term & sustainable KPIs Equity1) 2,149.1 1,749.0 +23 Equity ratio 43.8% 40.4% +341bp › ROCE target
Slide 39: Financial highlights 2021
FINANCIAL HIGHLIGHTS 2021 THE SUCCESS STORY CONTINUED IN 2021 AND WE REACHED OUR AMBITIOUS GOALS Organic growth ROCE 12.2% Solid financial leverage Outperforming GDP ROCE target of of 1.6x in North America >10% outperformed Net Debt/EBITDA, and Europe despite strong M&A spent of € 467 mn EBITDA repo
Slide 40: Trading update Q1 2022: ideally positioned to master challenges
TRADING UPDATE Q1 2022 WE ARE FULLY AWARE OF THE CURRENT VOLATILE SITUATION, BUT WE ARE IDEALLY POSITIONED TO MASTER THE CHALLENGES FORWARD-LOOKING MANAGEMENT › Pro-active pricing policy Despite the geopolitical instability, we are currently operating in a › Ongoing performance enhancement measures
Slide 41: Trading update Q1 2022: very strong increase in revenues and earnings
TRADING UPDATE Q1 2022 IN THE FIRST THREE MONTHS OF 2022, WE EXPECT TO ACHIEVE A VERY STRONG INCREASE IN REVENUES AND EARNINGS Revenue | +44% Business Units ~1,150 › Strong revenue and earnings growth in all business units, especially in North America 797 › Wienerberger Building Solutions › customer
Slide 42: Outlook
Slide 43: Market expectations 2022
MARKET EXPECTATIONS 2022 OVERALL STABLE ENVIRONMENT IN OUR CORE REGIONS DESPITE SUPPLY CHAIN AND COST INFLATION CHALLENGES Market growth (>2%) Stable development Market decline (<2%) WESTERN CENTRAL & NORTH NORDICS EUROPE EASTERN EUROPE AMERICA NEW BUILD → → → RENOVATION 1) INFRASTRUCTURE
Slide 44: Outlook 2022
OUTLOOK 2022 WIENERBERGER EBITDA TARGET 2022: € 750-770 MN Guidance assumptions | Trading Statement April 2022 Guidance for the year 2022 › Operating in a strong market environment › Expectation of further increase in demand in Q2 2022 › No significant gas shortage expected in Europe in Q2 2022 OPER
Slide 45: Renovation & infrastructure as future drivers of growth
WIENERBERGER 2030 RENOVATION & INFRASTRUCTURE AS THE FUTURE DRIVERS OF GROWTH FOR WIENERBERGER Renovation Water & Energy Management We are ideally positioned to capitalize on growth opportunities We consistently rely on: › We offer the ideal products: innovative & sustainable system solutions › Inno
Slide 46: Thank you to our shareholders over the last decade
WIENERBERGER TODAY THANK YOU TO OUR SHAREHOLDERS FOR SUCCESSFULLY ACCOMPANYING US OVER THE LAST DECADE… 2012 2021 Infrastructure Infrastructure 22% 15% New Build Renovation Residential 20% New Build 49% Residential 65% Renovation 29% € 2.4 bn revenues € 4 bn revenues Significantly enhanced business
Slide 47: Our program towards 2030
WIENERBERGER 2030 …AND THIS IS HOW WE WILL CONTINUE TOGETHER: OUR PROGRAM TOWARDS 2030… Maintenance Growth & ESG M&A Dividends CAPEX › Innovative products: › Strong M&A › Commitment to › Dividend policy to 1/3 of total revenues pipeline in-line with continuously invest pay out 20-40% of strategic pr
Slide 48: An even stronger and more resilient Wienerberger
WIENERBERGER 2030 …WILL RESULT IN AN EVEN STRONGER AND MORE RESILIENT WIENERBERGER 2021 2030 Infrastructure 22% Infrastructure 25% New Build New Build Residential Residential 49% 40% Renovation Renovation 35% 29% Strengthened market exposure to renovation 48