Wienerberger AG · VIE:WIE
Wienerberger — Q1-3 2019 Earnings Presentation
24 slides from Wienerberger's earnings presentation, Dec 18, 2019
Slide 1: Wienerberger Results Q1-3 2019
Wienerberger Results Q1-3 2019
Slide 2: Highlights Q1-3 2019
Q1-3 2019 Highlights Substantial earnings growth in Q1-3 Revenues € 2,656 mn | +6% EBITDA LFL € 457 mn | +27% Net profit € 206 mn | +64% Operating cash flow € 200 mn | +88% Strong delivery on Fast Forward efficiency improvements Q1-3 earnings contribution € 35 mn Confident in achieving our 2019 perf
Slide 3: Excellent performance
Q1-3 2019 Excellent performance Revenues EBITDA LFL 2) € 2,655.9 mn € 456.7 mn (Q1-3 2018: € 2,495.2 mn | +6%) (Q1-3 2018: € 359.9 mn | +27%) LFL 1): +5% Net profit EBITDA LFL margin € 205.7 mn 17.5% (Q1-3 2018: € 125.7 mn | +64%) (Q1-3 2018: 14.4% | +310 bp) 1) Adjusted for effects from consolidati
Slide 4: Highlights Q3 2019
Q3 2019 Highlights Strong focus on innovation and enhanced revenue share of high added-value solutions Strong earnings contribution from Fast Forward program Successful step in repositioning our underperforming Nordic brick business Value creating growth step in Danish facade market 4
Slide 5: Fully on track with Fast Forward program
Operational Excellence Fully on track with Fast Forward program › Earnings enhancement of € 35 mn On track to realize full delivered in Q1-3 19 performance improvement › Strong improvement of product mix › Automation projects, efficiency Manufacturing Excellence improvements and energy savings € 120
Slide 6: Management of underperforming businesses
Portfolio Optimization Management of underperforming businesses Businesses with unsatisfactory profitability & growth potential Revenues € 350 mn Avg. EBITDA-margin <10% M&A as catalyst › M&A opportunities have been identified as catalysts for repositioning certain businesses and unlocking the growt
Slide 7: Acquisition of Danish facade businesses
Portfolio optimization Acquisition of Danish facade businesses › Strengthening of market position in residential construction as well as Combined regional revenues of € 95 mn commercial and public building projects › Enhanced product portfolio and Current production site distribution platform throug
Slide 8: Shareholder value proposition underpinned by superior cash generation
Free Cash Flow Shareholder value proposition underpinned by superior cash generation COMMITMENT TO SUPERIOR CASH GENERATION ˃ Continuous focus on superior cash generation across the entire Group, delivered by: Superior Cash Generation 1 Operational Excellence 2 Capex discipline 3 Active portfolio ma
Slide 9: New capex definitions provide clarity
Free Cash Flow New capex definitions provide clarity THREE CAPEX CATEGORIES 1 MAINTENANCE CAPEX 2 SPECIAL CAPEX 3 M&A RECURRING DISCRETIONARY ˃ Recurring maintenance ˃ Fast Forward capex ˃ Value-accretive acquisitions investments ˃ Organic growth investments Definition ˃ Health & safety ˃ Digitaliza
Slide 10: Wienerberger Building Solutions: Strong earnings improvement
Wienerberger Building Solutions Strong earnings improvement WBS (in € mn) Q1-3 2019 Q1-3 2018 Chg. in % › Strong performance in broadly flat market External revenues 1,651.4 1,534.6 +8 environment EBITDA LFL 349.1 273.5 +28 › Enhanced revenue share of EBITDA 352.5 269.6 +31 high added-value solution
Slide 11: Wienerberger Piping Solutions: Significant earnings growth
Wienerberger Piping Solutions Significant earnings growth WPS (in € mn) Q1-3 2019 Q1-3 2018 Chg. in % › Stable demand for infrastructure and water External revenues 746.5 724.7 +3 management solutions EBITDA LFL 81.3 57.4 +42 › Significant growth of in-house EBITDA 78.3 42.8 +83 business supported b
Slide 12: North America: Satisfactory performance in mixed environment
North America Satisfactory performance in mixed environment North America (in € mn) Q1-3 2019 Q1-3 2018 Chg. in % › Highly satisfactory earnings in US facade business despite External revenues 257.6 235.0 +10 weaker than expected housing EBITDA LFL 26.3 29.0 -9 markets EBITDA 35.6 30.8 +15 › Canadia
Slide 13: Outlook 2019
OUTLOOK 2019
Slide 14: Performance 2019: Continuous improvements
Performance 2019 Continuous improvements Further enhancement of product portfolio Strong focus on innovation Value adding acquisitions and Fast Forward optimization measures High confidence in achieving our 2019 growth ambitions 14
Slide 15: Outlook 2019
Outlook 2019 Strong commitment to goal achievement EBITDA LFL € 570 mn - € 580 mn Maintenance ~ € 135 mn capex Special capex ~ € 120 mn M&A € 34 mn invested in Q1-3 2019 15
Slide 16: Key Financials
KEY FINANCIALS 4 7 | — | oe E Py _ SS 7
Slide 17: Strong growth of EBITDA LFL
Operating performance Strong growth of EBITDA LFL 550 500 EBITDA adjustment (€ mn) Q1-3 19 Q1-3 18 466.4 -9.7 456.7 EBITDA reported 2) 466.4 343.2 450 FX +1.1 - in € mn Consolidation -11.3 - 400 Sale of assets 3) -3.4 -11.0 Structural +16.7 359.9 adjustments 4) +3.9 +27.6 350 343.2 Total adjustment
Slide 18: Income Statement: Strong earnings increase
Income Statement Strong earnings increase in € mn Q1-3 2019 Q1-3 2018 Chg. in % Revenues 2,655.9 2,495.2 +6 EBITDA LFL 456.7 359.9 +27 EBITDA 466.4 343.2 +36 EBIT 292.0 206.9 +41 Financial result -27.6 -30.7 +10 Profit before tax 264.5 176.2 +50 Income taxes -48.4 -40.6 -19 Hybrid coupon and non-con
Slide 19: Impact of IFRS 16 implementation
Accounting change Impact of IFRS 16 implementation › Extension of the balance sheet Impact of implementation in Q1-3 19 › Recognition of “Right of Use Asset” and “Lease Liability” › Effects on income statement Income Statement in € mn › EBITDA: no rental / leasing expenses EBITDA +32.9 › EBIT: R
Slide 20: Operating CF reflects strong earnings increase
Cash Flow development Operating CF reflects strong earnings increase in € mn Q1-3 2019 Q1-3 2018 Chg. in € mn Chg. in % Gross cash flow 367.5 251.4 +116.1 +46 Change in working capital 1) -168.0 -145.2 -22.8 -16 Cash flow from operating activities 199.5 106.2 +93.3 +88 Maintenance capex -93.4 -75.3
Slide 21: Sound ratios despite IFRS 16 impact
Balance Sheet Sound ratios despite IFRS 16 impact Chg. in % vs. in € mn 30/9/2018 31/12/2018 30/9/2019 31/12/2018 Equity 1) 1,934.2 1,939.1 2,050.9 +6 Equity ratio 51% 52% 50% - Net debt 2) 686.0 631.6 881.2 +40 Net debt / EBITDA 3) 1.5 1.4 1.6 - Gearing 36% 33% 43% - 1) Including non-controlling in
Slide 22: IFRS 16 and WC seasonality cause increase
Development of net debt IFRS 16 and WC seasonality cause increase 1 200 1 000 163.0 881.2 800 +188.1 631.6 600 in € mn +33.9 +132.9 +99.3 400 -367.5 200 0 31/12/2018 Gross Dividend, Maintenance & M&A Working capital IFRS 16 30/9/2019 cash flow Hybrid coupon, Special capex & others Share & hybrid buy
Slide 23: 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 24: Wienerberger Investor Relations
Wienerberger Investor Relations Wienerbergstrasse 11 1100 Vienna, Austria T: +43 1 60 192 10221 investor@ Wienerberger.com