Wienerberger Ag · VIE:WIE
Wienerberger — Q3 2024 Earnings Presentation
40 slides from Wienerberger's earnings presentation, Nov 12, 2024
Slide 1: Results Q1-3 2024
DRAFT V02 30.10.2024 Strictly Confidential RESULTS RESULTS Q1-3 Q1-3 2024 2024 NOVEMBER 12, 2024 NOVEMBER 12, 2024 1
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: Highlights 2024
HIGHLIGHTS 2024 Investments to modernize and decarbonize First Investor Day: Sustainability production Program: It’s all Interim targets sites about 2024 on track growth 2024 Terreal M&A successfully supporting our closed transformation 3
Slide 4: We are continuously building on our strong M&A track record
We are continuously building on our strong M&A track record
Slide 5: Enhanced portfolio in water solutions in Northern Europe
VALUE-ACCRETIVE M&A ENHANCED PORTFOLIO IN WATER SOLUTIONS IN NORTHERN EUROPE Tekken AS (NOR) - leading supplier of › pumping stations, Strengthened position › prefabricated PE products and in the Nordic market › related services. Portfolio expansion with digital solutions Slatek OY (FIN) - key playe
Slide 6: Reinforcement of our position in construction and infrastructure in the Czech Republic
VALUE-ACCRETIVE M&A REINFORCEMENT OF OUR POSITION IN THE CONSTRUCTION AND INFRASTRUCTURE SECTOR IN THE CZECH REPUBLIC Betonarna Lesonic AS (CZ), a manufacturer of concrete pavers and innovative high-performance sound insulation Increased production capacity Portfolio expansion Broadened position in
Slide 7: We are continuously investing in modernization and decarbonization of production sites
We are continuously investing in the modernization and decarbonization of our production sites
Slide 8: Modernization of brick facility Berca in Romania
MA JOR INVESTMENTS IN OUR PRODUCTION SITES MODERNIZATION OF BRICK FACILITY BERCA IN ROMANIA: STEP TOWARDS SUSTAINABILITY AND CLIMATE NEUTRALITY Investment strengthens regional economy Facility meets highest standards in terms of efficiency and environmental impact Reduced resource utilization -4,000
Slide 9: Decarbonization of manufacturing processes in Uttendorf in Austria
MA JOR INVESTMENTS IN OUR PRODUCTION SITES PIONEERING NEW PATHS IN THE DECARBONIZATION OF MANUFACTURING PROCESSES IN UTTENDORF IN AUSTRIA Reopening in November 2024 Up to 90% CO₂ reduction and 30% energy savings possible Digital twin: optimizing energy efficiency and production processes World’s lar
Slide 10: Wienerberger has built an outstanding M&A track record
wienerberger has built an outstanding M&A track record transformed into a multiproduct / multi-solution business established an ideal organizational set-up facilitating fast integration
Slide 11: Summary Q1-Q3 2024
SUMMARY Q1-Q3 2024 11
Slide 12: Executive summary: strong sector demand, new build shows sequential improvement
EXECUTIVE SUMMARY WIENERBERGER BENEFITS FROM STRONG SECTOR DEMAND, WHILE THE NEW BUILD SECTOR SHOWS SEQUENTIAL IMPROVEMENT › Positive sentiment for new residential housing; sequential improvements but slower than expected › Increasing new residential housing market in UK/Ireland confirmed › Recovery
Slide 13: Overview of Q1-Q3 2024: solid set of results
EXECUTIVE SUMMARY OVERVIEW OF Q1-Q3 2024: SOLID SET OF RESULTS Revenue Operating EBITDA Operating EBITDA margin € 3,392 mn € 602 mn 17.7% (Q1-Q3 2023: € 3,286 mn | +3%) (Q1-Q3 2023 : € 665 mn | –9%) (Q1-Q3 2023: 20.2% | –250bp) Standstill Cost1) Cost management & self-help Terreal2) € –80 mn € +84 m
Slide 14: Financials Q3
FINANCIALS Q3 14
Slide 15: Third quarter results
Q3 2024 THIRD QUARTER RESULTS Revenue Operating EBITDA € 1,179 mn € 202 mn (Q3 2023: € 1,083 mn | +9%) (Q3 2023: € 211 mn | -4%) Net result Operating EBITDA margin € 47 mn 17.1% (Q3 2023: € 89 mn | -47%) (Q3 2023: 19.5% | -240bp) 15
Slide 16: Overall Q3 2024 volume decline of -2% driven by North America
VOLUME DEVELOPMENT Q3 2024 VS. Q3 2023 OVERALL Q3 2024 VOLUME DECLINE OF –2% DRIVEN BY SHORTFALLS IN NORTH AMERICA Ceramics +3% Ceramics +8% Ceramics –16% Pipes –6% Pipes 0% Pipes –7% Europe West 0% Europe East +5% EUROPE +2% NORTH AMERICA –14% OVERALL DECLINE: –2% Note: Rounding differences may ari
Slide 17: Revenue increase of +9% in Q3 2024 supported by M&A
REVENUE BRIDGE Q3 2024 REVENUE INCREASE OF +9% IN Q3 2024 SUPPORTED BY M&A Revenue Bridge in € mn –5% organic +148 1,179 › Volume decline driven by North America 1,083 –16 –6 –27 –4 › Europe: +2% › North America: –14% –2% –1% –3% › Overall sales prices stable vs. recent quarters; year-on-year –3% ›
Slide 18: Active cost management and self-help limit operating EBITDA shortfall
OPERATING EBITDA BRIDGE Q3 2024 ACTIVE COST MANAGEMENT AND SELF-HELP INITIATIVES LIMIT END MARKET DRIVEN OPERATING EBITDA SHORTFALL Operating EBITDA Bridge in € mn –13% 211 › Sales volume effect includes negative impact of –31 organic 0 +19 202 lower capacity utilization / standstill costs –36 +10 +
Slide 19: External revenues and operating EBITDA
Q3 2024 EXTERNAL REVENUES AND OPERATING EBITDA External revenues (in € mn) Q3 2024 Q3 2023 Chg. in % Europe West 657.9 540.0 22 Europe East 314.1 319.5 –2 North America 206.5 223.4 –8 wienerberger Group 1,178.5 1,082.9 9 Operating EBITDA (in € mn) Q3 2024 Q3 2023 Chg. in % Europe West 90.0 93.9 –4 E
Slide 20: Financials Q1-Q3 2024
FINANCIALS Q1-Q3 2024 20
Slide 21: Overview of Q1-Q3 2024: solid set of results
EXECUTIVE SUMMARY OVERVIEW OF Q1-Q3 2024: SOLID SET OF RESULTS Revenue Operating EBITDA Operating EBITDA margin € 3,392 mn € 602 mn 17.7% (Q1-Q3 2023: € 3,286 mn | +3%) (Q1-Q3 2023 : € 665 mn | –9%) (Q1-Q3 2023: 20.2% | –250bp) Standstill Cost1) Cost management & self-help Terreal2) € –80 mn € +84 m
Slide 22: Overall volume decline of -5% driven by ceramic business
VOLUME DEVELOPMENT Q1-Q3 2024 VS. Q1-Q3 2023 OVERALL VOLUME DECLINE OF –5% DRIVEN BY CERAMIC BUSINESS IN EUROPE WEST AND NORTH AMERICA Ceramics –8% Ceramics +2% Ceramics –13% Pipes –3% Pipes –1% Pipes +2% Europe West –6% Europe East +1% EUROPE –4% NORTH AMERICA –10% OVERALL DECLINE: –5% Note: Roundi
Slide 23: Revenue bridge Q1-Q3 2024
REVENUE BRIDGE Q1-Q3 2024 UK/IRELAND MARKET RECOVERY CONFIRMED, SOLID DEVELOPMENT IN EUROPE EAST, NORTH AMERICA REMAINS CHALLENGING Revenue Bridge in € mn –8% › Volume decline in ceramics in Europe West (especially 3,286 –151 organic +355 3,392 continental Europe) & North America –15 –78 –5 › Europe
Slide 24: Cost inflation in Q1-Q3 2024
DEEP DIVE: COST INFLATION Q1-Q3 2024 COST INFLATION IN Q1-Q3 2024 Personnel costs Raw materials Energy Granulates +5% +1% +2% –8% Overall cost inflation at ~–0.6% 24
Slide 25: Cost management and self-help
COST MANAGEMENT AND SELF-HELP MORE INTENSIFIED COST MANAGEMENT AND EFFICIENCY IMPROVEMENTS TO SUPPORT PROFITABILITY COST MANAGEMENT SELF-HELP PROGRAM Q1-Q3 2024 savings of EBITDA contribution Q1-Q3 2024 of € 51 mn € 33 mn savings of up to EBITDA contribution of € ~60 mn € ~40 mn expected for FY 2024
Slide 26: Approx. €150 mn of major one-offs included in H1 2024 results
Q1-Q3 2024 € ~150 MN OF MA JOR ONE-OFFS ALREADY INCLUDED IN H1 2024 RESULTS › Other operating Income in € mn Q1-Q3 2024 › Sale of assets: sale of non-core real estate and gain from the disposal of the Russian business Major one-off items › Other operating Expenses Sale of assets –11.1 Special write-
Slide 27: Cost & cash discipline remain on top of the agenda
OPERATING EBITDA BRIDGE Q1-Q3 2024 COST & CASH DISCIPLINE REMAIN ON TOP OF THE AGENDA Operating EBITDA Bridge in € mn 665 –132 –17% +52 602 › Sound self-help contribution majorly driven by organic +25 –1 Procurement and Manufacturing Excellence –70 +51 –20 +33 › Cost savings coming from restructurin
Slide 28: Mixed picture in new residential housing, solid infrastructure demand
Q1-Q3 2024 A MIXED PICTURE IN THE NEW RESIDENTIAL HOUSING MARKET, BUT SOLID DEMAND IN INFRASTRUCTURE AND RENOVATION Europe West External revenues (in € mn) Q1-Q3 2024 Q1-Q3 2023 Chg. in % › New residential housing Europe West 1,898.2 1,705.7 +11 › Recovery in UK/Ireland confirmed › Bottoming out in
Slide 29: Outlook 2024
OUTLOOK 2024 29
Slide 30: Outlook Q4 2024
OUTLOOK OUTLOOK Q4 2024 › Challenging geopolitical and macroeconomic environment › Inflation is slowing but interest rate are only slightly declining, and bank lending is still subdued › Governmental initiatives and projects are delayed › Political uncertainty with ongoing wars and elections in Euro
Slide 31: Terreal integration according to plan
DEEP DIVE: TERREAL INTEGRATION TERREAL INTEGRATION ACCORDING TO PLAN Expected EBITDA contribution 2024–2027 Swift and efficient integration € 150 mn on track Due to weaker new residential housing markets in Germany and France, priority is on accelerating € ~70 mn cost synergies EBITDA EBITDA EBITDA
Slide 32: Legacy business main driver for strong free cash flow
OUTLOOK 2024 LEGACY BUSINESS MAIN DRIVER FOR STRONG FREE CASH FLOW GENERATION IN 2024 Strong Free Cash Flow Development (>100%) Q1-Q3 2023 Q1-Q3 2024 –8.5 mn 174.2 mn Legacy business main driver for strong free cash flow generation € € supported by strict working capital management 32
Slide 33: Net debt development 2024
OUTLOOK 2024 NET DEBT DEVELOPMENT 2024 Net Debt € ~1.9 bn Positive cash flow supports € ~1.7 bn De-Levering toward 2024 target M&A investments in H2 will lead to a slightly higher net debt for year end 2024 Net Debt Net Debt 30.09.2024 31.12.2024e –11% 33
Slide 34: Outlook 2024
OUTLOOK OUTLOOK 2024 › Sustained headwinds in key markets with persistent challenges in new residential housing › Recovery continues in Eastern Europe, but at a lower pace compared to H1 2024 › Austria, Germany, Belgium, and France still bottoming out › Positive post-election shift expected in North
Slide 35: Appendix
APPENDIX
Slide 36: One-time restructuring costs excluded from operating EBITDA
APPENDIX IMPLEMENTED ONE-TIME RESTRUCTURING COSTS ARE EXCLUDED FROM OPERATING EBITDA EBITDA adjustments (in € mn) Q1-Q3 2024 Q1-Q3 2023 EBITDA reported 536.7 655.0 › Sale of assets: sale of non-core real estate Sale of assets1) –11.1 –4.4 › Structural adjustments: one-time restructuring Structural a
Slide 37: Income statement
APPENDIX INCOME STATEMENT in € mn Q1-Q3 2024 Q1-Q3 2023 Chg. in % Revenues 3,391.7 3,285.8 3 Operating EBITDA 601.9 665.1 –9 EBITDA 536.7 655.0 –18 Operating EBIT 267.5 443.0 –40 Impairment charges to assets –49.9 0.0 <–100 EBIT 217.6 443.0 –51 Financial result –117.7 –50.1 <–100 Profit before tax 9
Slide 38: Cash flow statement
APPENDIX CASH FLOW STATEMENT in € mn Q1-Q3 2024 Q1-Q3 2023 Chg. in % Gross cash flow 329.8 514.7 –36 Change in working capital –86.0 –408.9 79 Maintenance Capex –81.1 –81.7 1 Divestments and other 64.9 11.2 >100 Lease payments –53.5 –43.9 –22 Free cash flow 174.2 –8.5 >100 Special Capex –102.5 –75.3
Slide 39: Contact and financial calendar
CONTACT Wienerberger AG Investor Relations Wienerbergerplatz 1, 1100 Vienna wienerberger.com/en/investors investor@wienerberger.com +43 1 60192 10221 FINANCIAL CALENDAR February 26, 2025 Full-Year Results 2024 March 31, 2025 Publication Annual Report 2024 May 16, 2025 156th Annual General Meeting Ma
Slide 40: Wienerberger
wienerberger