Wienerberger AG · VIE:WIE

Wienerberger — Shareholder Meeting (May 2011)

35 slides from Wienerberger's shareholder meeting presentation, May 13, 2011

  1. Slide 1: 142nd Annual General Meeting

    142nd Annual General Meeting Managing Board: Heimo Scheuch, Willy Van Riet, Johann Windisch Vienna, May 13, 2011 Austria Center Vienna Disclaimer Cautionary note regarding forward-looking statements  The information contained in this document has not been independently verified and no representatio

  2. Slide 2: 2010 – a Year with Three Quarters

    2010 – a “Year with Three Quarters“  Q1: difficult due to weather conditions - Long, snowy winter period - Demand for building materials severely restrained  Q2: Turnaround - Flooding in Eastern Europe - Improvement in results in spite of lower average prices in Eastern Europe  Q3: Ongoing satisf

  3. Slide 3: Market Development 2010

    Market Development 2010 Stabilization in West Europe 6% Further market decline in East Europe, but Slight recovery in North 9 %*) Wienerberger gained America after historic low market share in 2009 -11 % -1 % 2% 6% -18 % 3% 2 %*) -12 % -3 % -21 % Market growth -25 % -6 % Stable development Market de

  4. Slide 4: Central-East Europe Regions at a Glance (2)

    Central-East Europe Regions at a Glance (2)  Austria - Slight decline in housing starts - Cost cutting program recorded significant improvement in earnings - Further increase in share of revenues generated by high-quality products (Example: Dryfix® system)  Hungary | Romania | Bulgaria | Southeast

  5. Slide 5: Central-West Europe Regions at a Glance

    Central-West Europe Regions at a Glance  Germany - Important single market of Wienerberger (15% of Group revenues) - Gradual improvement in consumer confidence - Stable clay block volumes | double-digit growth in sales volumes of filled bricks - renovation market as key driver for sales of clay roo

  6. Slide 6: North-West Europe Regions at a Glance (2)

    North-West Europe Regions at a Glance (2)  Great Britain - Strong momentum during the first three quarters | decrease in Q4 due to early and severe winter weather - Substantial increase in sales of facing bricks and roof tiles - Earnings improved despite lower average prices due to better capacity

  7. Slide 7: Emerging Markets – Russia and India

    Emerging Markets – Russia (3 plants) Murmansk Finland Tallinn Helsinki Kiprevo (1 clay block | 1 facing brick) Kaliningrad Riga Est. Kareliya Lith. Petrozavodsk Lat. St.Peterburg Arkhangelsk Vilnius Nar’yan-Mar Pskov Novgorod Minsk Belarussia Komi Tver’ Vologda Smolensk Moscow Yaroslavl’ Kazan (1 cl

  8. Slide 8: Emerging Markets – Conclusion

    Emerging Markets – Conclusion Emerging markets portfolio reviewed and strategy confirmed  Lessons learned  Strong management team in place  Further exploitation of market potential Further development of our businesses in India and Russia 15 2010: Turnaround Achieved  Operational - Restructuring

  9. Slide 9: Reorganization of Industrial Portfolio in 2010

    Reorganization of Industrial Portfolio in 2010  Pipelife as core business  Acquisition of 100% in Steinzeug-Keramo (ceramic sewages pipes)  Acquisition of the remaining 25% in Semmelrock  Unbundling of roof tile investments in Central-East Europe 17 Pipelife – Key Facts  One of the leading inte

  10. Slide 10: Pipelife – Product Portfolio

    Pipelife – Product Portfolio Civils Utilities Buildings Agriculture Specialties 35% 28% 20% 7% 7% 19 Steinzeug-Keramo – Key Facts  Worldwide operating and Europe’s largest producer of ceramic pipe systems  3 plants (2 in Germany and 1 in Belgium)  Acquisition in October 2010 to strengthen busines

  11. Slide 11: Steinzeug-Keramo and Semmelrock Key Facts

    Steinzeug-Keramo – Pipes for Sewage Systems Clay Pipes Jacking Pipes Fittings Accessories & (for open trench) (for microtunneling) (for open trench) Inspection Chambers 61% 14% 18% 7% Note: figures in % of Steinzeug revenues 2010 21 Semmelrock – Key Facts  Leading supplier of high-quality concrete

  12. Slide 12: Semmelrock Product Portfolio and Tondach Gleinstätten

    Semmelrock – Product Portfolio Pavers Slabs Accessories Fences 55% 15% 25% 5% Note: % = Share of total Semmelrock Group revenues 2010 23 Tondach Gleinstätten  Producer of clay roof tiles with 19 plants in 11 countries  50% Wienerberger | 50% family-owned  Modern and efficient plant network  2010

  13. Slide 13: Wienerberger Benefits from a Strong Operational Basis

    Wienerberger Benefits from a Strong Operational Basis  Leading market positions in core businesses  Premium, innovative product portfolio  High level of system competence for sustainable and energy- efficient building  Strong customer orientation Focus on growth 25 Results 2010 26

  14. Slide 14: Results 2010 by Region and Product

    Results 2010 by Region Revenues: € 1,744.8 mn | -4% EBITDA: € 210.8 mn | +1% North America North America Investments & Other Central-West 2% Investments & Other 8% -1% Europe -14% 17% Central- Central- Central- East Europe West Europa 30% East Europe 22% 41% North- North- West Europe West Europe 54%

  15. Slide 15: Change in Revenues and EBITDA

    Change in Revenues 2010 vs. 2009 1,816.9 -1% +2% -4% 1,744.8 -5% Revenues Volume Price FX Revenues 2009 Development Development 2010 Note: in € mn 29 Change in EBITDA by Region 2010 vs. 2009 +17.8 210.8 208.6 -6.8 +1% +10.6 +3.3 -22.7 EBITDA 1) Central-East North-West Central-West North Investments

  16. Slide 16: Income Statement and Cash Flow

    Income Statement in € mn 2009 2010 Chg. in % Revenues 1,816.9 1,744.8 -4 Operating EBITDA 1) 208.6 210.8 +1 Operating EBITDA margin 11.5% 12.1% +5 Depreciation 189.6 200.1 +6 Restructuring costs 2) -153.7 0.0 >100 Impairment charges to goodwill -123.3 0.0 >100 EBIT -258.1 10.7 >100 Financial results

  17. Slide 17: Strong Balance Sheet – Gearing only 15%

    Strong Balance Sheet – Gearing only 15% in € mn 2007 2008 2009 2010 Chg. in % Equity 1) 2,672.7 2,497.2 2,547.0 2,525.7 -1 Net debt 566.8 890.2 408.0 374.5 -8 Equity ratio 62% 57% 62% 62% - Gearing 21% 36% 16% 15% - 1) Including non-controlling interests and hybrid capital (100% equity according to

  18. Slide 18: Net Debt Further Reduced in 2010

    Net Debt Further Reduced in 2010 500 +32.5 408.0 +149.8 400 374.5 -64.5 in € mn 300 -151.3 200 100 0 Net debt Gross Total Dividend and Working Net debt 31/12/2009 cash flow investments hybrid coupon capital & 31/12/2010 others 35 Financial Homework Done  Cash: € 453 mn  Strong capital structure 

  19. Slide 19: Corporate Governance and Risk Management

    Corporate Governance  Comprehensive support for Austrian Corporate Governance Code  Information policy with maximum transparency (external & internal communications)  Compliance code to prevent insider trading (trading blackout | quiet period)  Performance-/earnings-based remuneration for Managi

  20. Slide 20: Internal Audit and Sustainability Report

    Internal Audit  Internal audit as staff department reporting to Managing Board  Duties: - Monitoring of compliance with legal requirements, internal guidelines and processes (internal control system) - Evaluation of operating processes with respect to risk management and opportunities to improve e

  21. Slide 21: Awards and Share Price Development

    International Awards for Wienerberger IR  Annual Report 2009: - Ranked 3rd at Annual Report on Annual Reports, Belgium: - No registration possible, independent jury selects reports out of thousands annual reports worldwide - 2 Gold Awards at ARC Awards, New York (best annual report of the industry)

  22. Slide 22: Wienerberger Product Portfolio and Strategy

    Wienerberger Strategy 43 Wienerberger Product Portfolio Strong exposure to new built and private sector: New built Renovation Private sector Public sector Infrastructure Clay blocks Roof Clay blocks Pavers Pavers Facing bricks Facing bricks Pipes*) Pipes Roof GROUP 70% 30% 75% 25% <10% (in % of reve

  23. Slide 23: Core Elements of Wienerberger Strategy

    Core Elements of Wienerberger Strategy  Focus on value based (CFROI > 11.5%) growth: - Internal (innovative products | system solutions | operational leverage) - External (strengthen and broaden position in core markets | strengthen position in renovation segment)  Financial discipline  Returns u

  24. Slide 24: Utilization of Growth Opportunities

    Utilization of Growth Opportunities INTERNAL EXTERNAL GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES Spare System Innovative Expansion in Development Capacity Provider Products Core Business Opportunities 47 Utilization of Growth Opportunities INTERNAL EXTERNAL Growth Opportunities Growth Opportunities S

  25. Slide 25: Capacity Development 2007 – 2010

    Capacity Development 2007 – 2010 Spare Capacity Mothballed Capacity Closed New change CEE, France, Clay blocks 8% ~30% -13% +23% Germany, India +10% Roof tiles 0% ~30% -2% +12% Sandtoft +10% Facing bricks1) 30% ~30% -32% +22% Baggeridge, CEE -10% Pavers 0% ~20% 0% +50% Concrete pavers CEE +50% 1) Da

  26. Slide 26: Product Innovation Clay Blocks: Dryfix System

    Product Innovation Clay Blocks: Wienerberger DRYFIX System  Launch: 2007 in Austria  Vigorous growth despite crisis  2010: launch of Dryfix extra Austria Czech Republic +116% +46% +59% +266% 2008 2009 2010 2008 2009 2010 Note: figures represent volume development of plane ground blocks with Dryfi

  27. Slide 27: KoraTech – Rationale and Potential

    KoraTech® – Rationale and Potential  Started in 2006 in the Benelux | meanwhile distributed in all clay roof tile markets  Objectives: +38% +20% - System approach – “One-stop Shop” for the roofer - Create higher revenues per m2 roof  Currently about 4% of clay roof tile 2009 2010 2011e revenues 

  28. Slide 28: Product Innovation: Infill Blocks and Tondach

    Product Innovation Clay Blocks: Infill Blocks  Clay blocks filled with Perlite (volcanic material) or mineral wool  Integrated insulation – no additional insulation material needed  Example: volume development in Germany +17% +25% 2008 2009 2010 Note: figures represent volume development of plane

  29. Slide 29: Product Innovation: Concrete Paver and Pipelife

    Product Innovation Concrete paver  Patented paving system for high loaded circulation area  System for private gardens and areas with natural stone appearance Pflastersystem Einstein® Sales development Semmelrock Group +45% +51% +51% Product system Bradstone® in natural stone appearance 2007 2008

  30. Slide 30: Steinzeug-Keramo: Innovation Ceralong S

    Steinzeug-Keramo: Innovation Ceralong S  Speed in production process: 22 hours instead ~14 days - Low energy expenditure in production cuts production costs - High energy efficiency enhance sustainability of the products  Innovative premium product due to length and high stability: - Enables insta

  31. Slide 31: External Growth Potential

    External Growth Potential  Only value-creating projects will be realized (CFROI > 11.5%)  Expansion in core business: - Use of opportunities in Wienerberger markets in order to strengthen the market position - Bolt-on projects (new plant construction, smaller acquisitions) in markets with future o

  32. Slide 32: Dividend For 2010

    Dividend For 2010  Dividend payout planned for 2010 after waiver of dividend in 2008 and 2009  Future dividend policy depends on further development of earnings Proposal to Annual General Meeting: Dividend payout of € 0.10 per share 63 Outlook 2011 64

  33. Slide 33: Assumptions for 2011 and First Quarter 2011

    Assumptions for 2011  Volume growth  Improvement of capacity utilization up to ~ 65% (2010: 60%)  Cost inflation covered by price adjustments  €15 mn higher price-driven energy costs (assuming stable production volumes)  Positive one-off effects - € 30 mn one-off effects from swap Bramac - Tond

  34. Slide 34: Outlook 2011 and Mid-term Goals

    Wienerberger Markets – Outlook 2011 North America H1: decline expected H2: moderate recovery possible East Europe Sound development in Poland, apart from that visibility is limited West Europe Ongoing positive trend Market growth Stable development Market decline 67 Mid-term Goals  Continuous incre

  35. Slide 35: Thank you for your attention!

    Your partner for energy-efficient and sustainable new housing construction 69 Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 Tel +43 1 60192 - 471, Fax +43 1 60192 - 466 investor@wienerberger.com | www.wienerberger.com Thank you for your attention! 70

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