Wienerberger Ag · VIE:WIE
Wienerberger — H1 2022 Earnings Presentation
34 slides from Wienerberger's earnings presentation, 2022
Slide 1: Results H1 2022
wienerberger RESULTS H1 2022
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
INTRO RESULTS H1 2022
Slide 4: Strong growth in first half of 2022
H1 2022 STRONG GROWTH IN FIRST HALF OF 2022 … Revenue EBITDA reported € 2,572 mn € 549 mn (H1 2021: € 1,868 mn | +38%) (H1 2021: € 307 mn | +79%) Net result EBITDA margin € 321 mn 21.3% (H1 2021: € 113 mn | >+100%) (H1 2021: 16.4% | +4.9pp) 4
Slide 5: Despite a challenging market environment
H1 2022 … DESPITE A CHALLENGING MARKET ENVIRONMENT INSTABLE GLOBAL END MARKET DEVELOPMENT & GAS & SUCCESS IN THOSE CHALLENGING MARKET ENVIRONMENT WIENERBERGER PERFORMANCE ENERGY TRANSITION TIMES IS BASED ON … › High cost inflation NEWBUILD › We successfully reduced our › Hard work of all our employe
Slide 6: We successfully outperformed cost inflation
COST INFLATION H1 2022 WE SUCCESSFULLY OUTPERFORMED COST INFLATION › Firmly established, excellent procurement PROCUREMENT organization at Group level SUCCESSFUL OUTPERFORMANCE OF STRATEGY › Forward looking procurement strategy COST INFLATION IN H1 2022 implemented for required input materials & ene
Slide 7: Fully aware of volatile situation, but ideally positioned
H1 2022 WE ARE FULLY AWARE OF THE CURRENT VOLATILE SITUATION, BUT WE ARE IDEALLY POSITIONED TO MASTER THESE CHALLENGES ENVIRONMENT wienerberger wienerberger › High demand & order intakes – remains geared across all regions & business areas due to for further growth… › Geopolitical instability system
Slide 8: Major focus topics for 2022
FY 2022 MAJOR FOCUS TOPICS FOR 2022 1 2 ONGOING BUSINESS ENERGY GROWTH › Fully focus on satisfying the › In the event of energy unavailability, › M&A remains a core growth demand to remain a reliable we have prepared contingency pillar partner also in challenging times plans for each country › Acqui
Slide 9: Wienerberger energy policy embedded in ESG strategy
MAJOR FOCUS TOPICS 2022 1 WIENERBERGER ENERGY POLICY EMBEDDED IN ESG STRATEGY CLEAR GOALS: LESS ENERGY DEMAND, LESS CO2 CONSUMPTION, GREATEST POSSIBLE AVAILABILITY FORWARD-LOOKING ENERGY MANAGEMENT -40% CO2 ESG CAPEX New reduction until 2030 Technologies wienerberger wienerberger ESG Strategy Ener
Slide 10: Energy transition: application of alternative forms of energy
MAJOR FOCUS TOPICS 2022 1 ENERGY TRANSITION: APPLICATION OF ALTERNATIVE FORMS OF ENERGY ELECTRIFICATION Testing proven electrification technology for various plants and product groups › Austria: clay blocks › Germany & the Netherlands: roof tiles ESG CAPEX New Technologies SYNGAS & BIOCHAR Testing
Slide 11: Reduction of energy consumption through operational excellence
MAJOR FOCUS TOPICS 2022 1 REDUCTION OF ENERGY CONSUMPTION THROUGH OPERATIONAL EXCELLENCE HIGH EFFICIENCY KILN & GREEN ELECTRICITY Producing clay blocks & roof tiles with nearly zero carbon footprint › Austria & United Kingdom Operational Excellence Process enhancements HEAT PUMP SYSTEM Recovery of
Slide 12: Fully on track to achieve our 2023 ESG targets
MAJOR FOCUS TOPICS 2022 1 FULLY ON TRACK TO ACHIEVE OUR 2023 ESG TARGETS Decarbonization Circular Economy Biodiversity 2023 target: 2023 target: 2023 target: -15% CO2e1) emissions vs. 2020 100% of new products reuseable or recylable Biodiversity program for all sites in place 2021 achievement: 2021
Slide 13: Continue with bolt-on acquisitions with a high strategic fit
MAJOR FOCUS TOPICS 2022 2 CONTINUE WITH BOLT-ON ACQUISITIONS WITH A HIGH STRATEGIC FIT M&A PORTFOLIO OPTIMIZATION Mix improvement within Tackling labor shortage through Expansion of Continuous & disciplined inhouse piping solutions increased share of system solutions renovation exposure review of po
Slide 14: Financials
wienerberger NES
Slide 15: High demand across all regions and product groups
H1 2022 | WIENERBERGER BUILDING SOLUTIONS HIGH DEMAND ACROSS ALL REGIONS AND PRODUCT GROUPS › System solutions for the entire building envelope › Good order situation and strong Wienerberger › Clay blocks & facing bricks, roof tiles, concrete pavers demand for innovative system Building solutions in
Slide 16: Strong revenue and earnings growth
H1 2022 | WIENERBERGER PIPING SOLUTIONS STRONG REVENUE AND EARNINGS GROWTH Wienerberger › Piping solutions for buildings and infrastructure › Overall good demand for our Piping › Pipelife plastic pipes & Steinzeug-Keramo ceramic pipes water and energy management Solutions › 25 European countries sol
Slide 17: Organic growth and Meridian Brick contributions
H1 2022 | NORTH AMERICA ORGANIC GROWTH BY HEALTHY DEMAND AND STRONG CONTRIBUTIONS FROM MERIDIAN BRICK ACQUIRED IN 2021 › Innovative products and system solutions North › Facing bricks, concrete & calcium silicate products, plastic pipes America › High demand in Canada and USA › Located in Canada and
Slide 18: Total revenues up 38%, organic growth of 23%
REVENUE DEVELOPMENT H1 2022 TOTAL REVENUES UP +38%, DRIVEN BY STRONG ORGANIC GROWTH OF +23% +23% organic 2,572 5 431 269 1,868 in € mn Revenues H1 2021 Scope Organic FX Revenues H1 2022 +38% Note: Rounding differences may arise from automatic processing of data 18
Slide 19: Total EBITDA up 79%, organic growth of 62%
EBITDA DEVELOPMENT H1 2022 TOTAL EBITDA UP +79%, DRIVEN BY STRONG ORGANIC GROWTH OF +62% +62% organic 545 6 189 305 46 in € mn Operating Scope Organic 1) FX Operating EBITDA H1 2021 EBITDA H1 2022 +79% Note: Rounding differences may arise from automatic processing of data 1) Including self help init
Slide 20: Substantial earnings growth and strong contribution from M&A
EBITDA DEVELOPMENT H1 2022 SUBSTANTIAL EARNINGS GROWTH AND STRONG CONTRIBUTION FROM VALUE-CREATING M&A EBITDA DEVELOPMENT Reported Operating +79% +79% EBITDA adjustments H1 2022 H1 2021 in € mn EBITDA reported 548.8 307.0 Sale of assets1) -3.5 -5.1 Structuraladjustments2) 0.1 3.1 549 545 OperatingEB
Slide 21: Energy 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 GAS VOLUMES ENSURED FOR 2022-2025 ENERGY STRATEGY as of 30 June 2022 Our policy is to buy gas and electricity 96% volumes forward based on
Slide 22: Self help program delivers earnings contribution of € 27 mn
GROWTH BY SELF HELP SELF HELP PROGRAM DELIVERS STRONG EARNINGS CONTRIBUTION OF € 27 MN IN H1 2022 EBITDA CONTRIBUTION EXPECTED PROGRAM CONTRIBUTION IN 2022 135 Innovation & organic growth ~40% Impact on revenues and cost of sales 45 Manufacturing excellence 21 90 ~35% Impact on cost of sales 27 Proc
Slide 23: Excellent financials reflecting strong business performance
FINANCIAL HIGHLIGHTS H1 2022 EXCELLENT FINANCIALS REFLECTING STRONG BUSINESS PERFORMANCE 23% organic revenue growth Significant earnings growth Self help and M&A driven by continuous focus on › Operating EBITDA: € 545 mn | +79% Self help: Earnings contribution from innovation & system solutions cont
Slide 24: Outlook
wienerberger
Slide 25: Outlook 2022: stable renovation & infrastructure, new build decline
OUTLOOK 2022 FAIRLY STABLE DEVELOPMENT FOR RENOVATION & INFRASTRUCTURE, CERTAIN DEGREE OF DECLINE FOR NEW BUILD EXPECTED END MARKETS ENERGY & COST INFLATION NEWBUILD › We assume availability of gas to also be secured in H2 2022 › Markets are underbuilt and demand for housing remains high › Successfu
Slide 26: Wienerberger end markets in H2 2022
MARKET EXPECTATIONS 2022 WIENERBERGER END MARKETS IN H2 2022 WESTERN CENTRAL & NORTH EUROPE EASTERN EUROPE AMERICA NEW BUILD RENOVATION Market growth (>2%) INFRASTRUCTURE Stable development Market decline (<2%) 26
Slide 27: Wienerberger beyond 2022
WIENERBERGER BEYOND 2022
Slide 28: Wienerberger today
WIENERBERGER BEYOND 2022 WIENERBERGER TODAY › Highly effective production network BUSINESS MODEL SUCCESFULLY › Highly innovative product portfolio TRANSFORMED › Disciplined M&A track record with a clear focus on the further transformation of the Group wienerberger today › Proven track record of cost
Slide 29: We expect a challenging, but manageable environment in 2022+
WIENERBERGER BEYOND 2022 WE EXPECT A CHALLENGING, BUT MANAGEABLE ENVIRONMENT IN 2022+ MARKETS COST INFLATION Structural undersupply of building materials Price levels in total expected to stay at elevated levels › Pent-up demand › Raw materials prices slightly declining › Housing as strong protectio
Slide 30: We will continue our sustainable growth strategy
WIENERBERGER BEYOND 2022 WE WILL CONTINUE OUR SUSTAINABLE GROWTH STRATEGY Continuation of proven growth strategy Well prepared to continue to outperform our markets Organic growth through Adaptive business model Digitalization, innovation & system solutions We are prepared for any scenario +23% orga
Slide 31: Annex
wienerberger
Slide 32: Strong performance in H1
H1 2022 STRONG PERFORMANCE IN H1 External revenues (in € mn) H1 2022 H1 2021 Chg. in % › Strong results despite a challenging environment on the Wienerberger Building Solutions 1,358.3 1,115.4 +22 back of high demand in all markets and product groups Wienerberger Piping Solutions 742.2 569.7 +30 › D
Slide 33: Income statement
INCOME STATEMENT STRONG PERFORMANCE IN OPERATING BUSINESS LED TO AN EXCELLENT PROFIT GROWTH in € mn H1 2022 H1 2021 Chg. in % Revenues 2,571.9 1,867.5 +38 Operating EBITDA 545.4 305.0 +79 EBITDA 548.8 307.0 +79 Operating EBIT 408.3 181.3 >+100 Impairment charges to assets -14.8 0.0 <-100 Impairment
Slide 34: Cash flow statement
CASH FLOW STATEMENT STRONG OPERATING PERFORMANCE WITH GOOD CASH GENERATION in € mn H1 2022 H1 2021 Chg. in € mn Chg. in % Gross cash flow 483.6 236.9 246.8 >+100 Change in working capital -290.8 -146.2 -144.6 -99 Maintenance Capex -43.8 -43.3 -0.6 -1 Divestments and other 10.0 20.3 -10.3 -51 Lease p