Wienerberger Ag · VIE:WIE
Wienerberger — H1 2019 Earnings Presentation
29 slides from Wienerberger's earnings presentation, 2019
Slide 1: Wienerberger Results H1 2019
Wienerberger Results H1 2019
Slide 2: 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 3: Highlights H1 2019
Highlights H1 2019 Record H1 results highlight consistent implementation of value-enhancing growth strategy Revenues € 1,736 mn | +8% EBITDA LFL € 287 mn | +33% Net profit € 127 mn | >100% Excellent progress on Fast Forward Program H1 earnings contribution € 25 mn Confident in delivering our 2019 gr
Slide 4: Highlights H1 2019
Highlights H1 2019 H1 trading environment broadly consistent with expectations at the beginning of the year Increasing volatility in certain regions in Q2 Improved product mix and favorable pricing drive earnings improvement Strong earnings contribution from bolt-on M&A deals 4
Slide 5: Wienerberger Building Solutions: Excellent performance in H1
Wienerberger Building Solutions Excellent performance in H1 › Growth in almost all our core markets WBS (in € mn) H1 2019 H1 2018 Chg. in % › Early start to building season due to External revenues 1,074.1 978.4 +10 favorable weather conditions EBITDA LFL 219.1 160.5 +37 › Normalization of demand in
Slide 6: Special topic - Brexit: Wienerberger is a leading player in the UK
Special topic - Brexit Wienerberger is a leading player in the UK › Strong performance in H1 Strong industrial base – 15 plants › Leading market position › Majority of products for the UK market are produced in the UK › Unique portfolio complemented by products from Benelux › Core market with highly
Slide 7: Proactive contingency planning for hard Brexit
Special topic - Brexit Proactive contingency planning for hard Brexit Risks Impact Wienerberger position Tariffs under low › Local production accounts for majority of sales and provides natural hedge WTO agreement › Duties on imports of building materials are negligible under WTO agreements › Local
Slide 8: Wienerberger Piping Solutions: Significant earnings growth
Wienerberger Piping Solutions Significant earnings growth › Normalization of demand in-line with WPS (in € mn) H1 2019 H1 2018 Chg. in % expectations after strong start to the year › Strong growth in electro business External revenues 497.0 478.5 +4 EBITDA LFL 51.7 35.2 +47 › Earnings increase in wa
Slide 9: North America: Mixed developments in H1
North America Mixed developments in H1 › Sound demand for facade solutions in North America (in € mn) H1 2019 H1 2018 Chg. in % our relevant core markets › Strong earnings contribution from External revenues 164.9 149.3 +10 acquired facing brick producer EBITDA LFL 15.8 19.3 -18 › Stricter housing m
Slide 10: Major challenges …
Special topic – Labor shortage across our regions Major challenges … Limiting factor for housing activity Delays of started projects Major cost driver High performance building materials may underperform due to wrong handling 10
Slide 11: … and interesting opportunities
Special topic – Labor shortage across our regions … and interesting opportunities OUR SOLUTIONS Expanding our share in the value chain PREFABRICATION AUTOMATION Partner for entire projects Increasing our service revenue contribution Cost reduction and more reliable SERVICES SMART SYSTEMS planning fo
Slide 12: Sustainability Roadmap 2020
Enhancing our sustainable business model Sustainability Roadmap 2020 › Our Sustainability Accident frequency rate -50% Roadmap 2020 is a self- imposed commitment to continuously improve our ecological, social, societal Recycled materials in and economic plastic pipes +28% performance across the enti
Slide 13: Outlook 2019
OUTLOOK 2019
Slide 14: Growth drivers for 2019
Business development Growth drivers for 2019 1 2 3 4 Continued delivery Disciplined M&A Sound market Solutions offering of Fast Forward to strengthen environment across the portfolio Program core platforms 14
Slide 15: Market development 2019: Wienerberger Building Solutions
Market development 2019 Wienerberger Building Solutions › Trading environment broadly confirms expectations from the beginning of the year › Slight growth in European residential construction › Increasing volatility in certain regions Market growth (>2%) Stable development Market decline (<-2%) Note
Slide 16: Market development 2019: Wienerberger Piping Solutions
Market development 2019 Wienerberger Piping Solutions › Sound environment in European piping markets confirms expectations › Stable development in Western Europe › Sound Nordic markets › Eastern Europe remains growth region with certain markets showing signs of stabilization Market growth (>2%) Stab
Slide 17: Market development 2019: North America
Market development 2019 North America › North American end markets show mixed trends › Slight growth in our relevant brick markets › Unfavorable weather conditions limit growth in otherwise sound US piping markets Pipes USA › Government measures causing slowdown of housing activity in relevant Canad
Slide 18: Confident in delivery – narrowing guidance range
Outlook 2019 Confident in delivery – narrowing guidance range 600 +77 580 +67 570 550 +41 503 in € mn 500 462 450 400 EBITDA LFL 2018 IFRS 16 EBITDA LFL 2018 EBITDA EBITDA LFL 2019 incl. FX base improvement guidance Note: Rounding differences may arise from automatic processing of data 18
Slide 19: Strong commitment to updated goals
Outlook 2019 Strong commitment to updated goals EBITDA LFL € 570 mn - € 580 mn vs. previously € 560 mn - € 580 mn Normal capex ~ € 200 mn Growth capex € 47 mn invested in H1 2019 We continue to work on a highly attractive deal pipeline and expect to move ahead on a number of M&A opportunities 19
Slide 20: Key Financials
KEY FINANCIALS 4 7 | — | oe E Py _ SS 7
Slide 21: H1 2019 Record performance
H1 2019 Record performance Revenues EBITDA LFL 2) € 1,736.4 mn € 286.6 mn (H1 2018: € 1,606.9 mn | +8%) (H1 2018: € 214.9 mn | +33%) LFL 1): +6% Net profit EBITDA LFL margin € 126.9 mn 16.8% (H1 2018: € 53.2 mn | >100%) (H1 2018: 13.4% | +340 bp) 1) Adjusted for effects from consolidation and FX 2)
Slide 22: Strong growth of EBITDA LFL
Operating performance Strong growth of EBITDA LFL 320 300 295.7 286.6 EBITDA -9.1 adjustment (€ mn) H1 19 H1 18 280 EBITDA reported 2) 295.7 198.9 260 FX +1.4 - in € mn 240 Consolidation -8.0 - 220 +16.0 214.9 Sale of assets 3) -3.2 -9.3 Structural 200 198.9 adjustments +0.7 +25.3 Total adjustment -
Slide 23: Net result more than doubled
Income statement Net result more than doubled in € mn H1 2019 H1 2018 Chg. in % Revenues 1,736.4 1,606.9 +8 EBITDA LFL 286.6 214.9 +33 EBITDA 295.7 198.9 +49 EBIT 181.5 107.7 +69 Financial result -14.8 -21.1 +30 Profit before tax 166.7 86.6 +93 Income taxes -32.9 -27.1 -21 Hybrid coupon and non-cont
Slide 24: Impact of IFRS 16 implementation
Accounting change Impact of IFRS 16 implementation › Extension of the balance sheet Impact of implementation in H1 19 › Recognition of “Right of Use Asset” and “Lease Liability” › Effects on income statement Income Statement in € mn › ↑ EBITDA: no rental / leasing expenses EBITDA +21.3 › ↑ EBIT: Ren
Slide 25: Gross cash flow reflects strong earnings increase
Cash flow development Gross cash flow reflects strong earnings increase in € mn H1 2019 H1 2018 Chg. in € mn Chg. in % Gross cash flow 215.4 132.6 +82.8 +62 Change in working capital 1) -210.3 -193.5 -16.7 -9 Normal capex -68.5 -60.7 -7.9 -13 Divestments and other 2) -17.3 +74.2 -91.5 <-100 Free cas
Slide 26: Sound ratios despite IFRS 16 impact
Balance sheet Sound ratios despite IFRS 16 impact Chg. in % vs. in € mn 30/6/2018 31/12/2018 30/6/2019 31/12/2018 Equity 1) 1,855.9 1,939.1 1,980.4 +2 Equity ratio 47% 52% 49% - Net debt 778.7 631.6 982.3 +56 Net debt / EBITDA 2) 1.8 1.4 1.8 - Gearing 42% 33% 50% - 1) Including non-controlling inter
Slide 27: IFRS 16 and WC seasonality cause increase
Development of net debt IFRS 16 and WC seasonality cause increase 1 200 1 000 +208.9 982.3 800 +160.6 631.6 +115.8 in € mn 600 +81.0 400 -215.4 200 0 31/12/2018 Gross Dividend, Total IFRS 16 Working capital 30/6/2019 cash flow Hybrid coupon, capex & others Share & hybrid buyback Note: Rounding diffe
Slide 28: Balanced financing structure
Financing Balanced financing structure › Cash 30/6/2019: € 99 mn › Credit lines: € 400 mn › Thereof drawn 30/6/2019: € 70 mn › Term structure: 600 500 400 Undrawn credit lines in € mn 300 200 First-Call Date Hybrid 100 0 2019 2020 2021 2022 2023 after 2023 Maturities Cash balance Note: Term structur
Slide 29: wienerberger geared for growth
wienerberger geared for growth