Wienerberger Ag · VIE:WIE
Wienerberger — Q1 2024 Earnings Presentation
34 slides from Wienerberger's earnings presentation, May 16, 2024
Slide 1: Q1 / Strategic Update / Outlook 2024
Q1 / STRATEGIC UPDATE / OUTLOOK 2024 MAY 16, 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: Strong Position Based on Transformation
WIENERBERGER‘S STRATEGIC TRANSFORMATION STRONG POSITION BASED ON TRANSFORMATION Increased resilience due to the successful transformation of wienerberger into a provider of innovative and ecological solutions 3
Slide 4: Wienerberger Today: More Resilient, More Innovative, More Efficient
WIENERBERGER‘S STRATEGIC TRANSFORMATION WIENERBERGER TODAY: MORE RESILIENT, MORE INNOVATIVE, MORE EFFICIENT Infrastructure 22% Infrastructure 15% Newbuild 49% Newbuild 65% 2012 2023 4
Slide 5: Revenue and Share of Innovative Products
WIENERBERGER‘S STRATEGIC TRANSFORMATION WIENERBERGER TODAY: MORE RESILIENT, MORE INNOVATIVE, MORE EFFICIENT Revenue and share of innovative products in € mn and % € 4,224 mn 30% Share of innovative products € 2,356 mn TARGET 2026 >35% 32% Share of innovative products 23% 2012 2023 Innovative product
Slide 6: EBITDA Contribution 2021-2023
WIENERBERGER‘S STRATEGIC TRANSFORMATION WIENERBERGER TODAY: MORE RESILIENT, MORE INNOVATIVE, MORE EFFICIENT EBITDA contribution 2021-2023 › Optimized manufacturing +136 processes and product quality › Efficient sales € MN › Supply Chain Management and general administration through efficiency enhanc
Slide 7: Revenues by Region & Product
WIENERBERGER‘S STRATEGIC TRANSFORMATION REVENUES BY REGION & PRODUCT North America Wall 20% Pipes 17% 34% 52% Europe 28% West 30% Europe 16% Facade East Roof Figures for 2023 business year 7
Slide 8: Operating EBITDA by Region & Product
WIENERBERGER‘S STRATEGIC TRANSFORMATION OPERATING EBITDA BY REGION & PRODUCT North Wall America Operating EBITDA Operating 0 margin: 0 EBITDA margin: Pipes Operating 17% 26% Operating Europe 0 EBITDA margin: 0 EBITDA margin: West 19% Operating 17% 0 EBITDA margin: Operating Operating 19% Facade 0 EB
Slide 9: Financing Policy Secures Strong Balance Sheet
FINANCING AND CAPITAL STRUCTURE FINANCING POLICY SECURES STRONG BALANCE SHEET Strong capital Solid liquidity Financial leverage Securing base reserve at year-end target at year-end investment grade rating ~ 50% € 700-800 mn 1.5-2.0x Baa3 Equity ratio RCF & cash Net debt/operating EBITDA Moody‘s Rati
Slide 10: Capital Allocation Policy
CAPITAL ALLOCATION POLICY 10
Slide 11: Strong Financial Basis for the Further Development of Wienerberger
CAPITAL ALLOCATION POLICY STRONG FINANCIAL BASIS FOR THE FURTHER DEVELOPMENT OF WIENERBERGER HIGH FREE CASH FLOW FINANCIAL DISCIPLINE STRONG CASH CONVERSION € 1.3 bn Net debt 1.5–2x operating 84% 2021–2023 EBITDA 2021–2023 at year-end STRONG FINANCIAL BASIS 11
Slide 12: Long-Term Capital Allocation Policy
CAPITAL ALLOCATION POLICY LONG-TERM CAPITAL ALLOCATION POLICY Dividend Share buyback Maintenance Growth capex Policy policy capex incl. ESG M&A depending on 1–2% of the share capital € 160-180 mn € ~200 mn opportunities annually p.a.2) p.a. 3) 20–40% of free cash flow to be returned to shareholders1
Slide 13: Effective Capital Utilization Drives Strong Value Creation
CAPITAL ALLOCATION POLICY EFFECTIVE CAPITAL UTILIZATION DRIVES STRONG VALUE CREATION Target 2026 Calculation of ROCE (pre-tax) 2023 Operating EBIT Average capital employed 14% 17% 13
Slide 14: Value-Creating Acquisitions
VALUE-CREATING ACQUISITIONS 14
Slide 15: M&A Track Record
VALUE-CREATING ACQUISITIONS M&A – TRACK RECORD ~40 value-creating acquisitions support the transformation process over the last 10 years 15
Slide 16: M&A: ~5x EV/EBITDA Multiple Post Merger
VALUE-CREATING ACQUISITIONS M&A ~5x EV/EBITDA multiple 3 years post merger and including synergies 16
Slide 17: M&A 2024 and Beyond
VALUE-CREATING ACQUISITIONS M&A 2024 AND BEYOND Strong and attractive deal pipeline for wienerberger in all segments in Europe and North America 17
Slide 18: Terreal Acquisition Successfully Closed End of February 2024
VALUE-CREATING ACQUISITIONS TERREAL ACQUISITION SUCCESSFULLY CLOSED END OF FEBRUARY 2024 Terreal integration according to plan Expected EBITDA contribution 2024-2027 € +725 +28 € 150 mn mn Production € 130 mn € 120 mn Revenues Sites € 90 mn +3,000 Employees EBITDA EBITDA EBITDA EBITDA 2024* 2025 202
Slide 19: Acquisition of GrainPlastics to Enhance Drainage and Cable Protection Solutions
VALUE-CREATING ACQUISITIONS: GRAINPLASTICS NETHERLANDS ACQUISITION OF GRAINPLASTICS TO ENHANCE DRAINAGE AND CABLE PROTECTION SOLUTIONS +80 › Piping solutions for cable protection and water employees € +30 management such as agriculture, irrigation, and public infrastructure mn Revenues › Strengthene
Slide 20: Drainage Network Requires Renovation and Replacement
VALUE-CREATING ACQUISITIONS: GRAINPLASTICS NETHERLANDS DRAINAGE NETWORK REQUIRES RENOVATION AND REPLACEMENT › GrainPlastics offers precision technology to maintain a consistent water level across the entire field › Access points facilitate monitoring, inspection and maintenance activities and house
Slide 21: Cable Protection: Governmental Spending for Highly Congested Network
VALUE-CREATING ACQUISITIONS: GRAINPLASTICS NETHERLANDS CABLE PROTECTION: GOVERNMENTAL SPENDING FOR HIGHLY CONGESTED NETWORK › GrainPlastics offers durable waterproof and dustproof cable protection solutions to withstand high pressure › Integrated pull wire simplifies the threading of cables Growth P
Slide 22: Financials Q1 2024
FINANCIALS Q1 2024 22
Slide 23: Market Estimate vs. EBITDA Development
OUTLOOK 2024 MARKET ESTIMATE VS. EBITDA DEVELOPMENT 110 1000 100 Market 90 800 development 91% 80 600 70 72% 69% 60 400 50 200 40 0 30 2022 1900 2023 1900 2024 1900 Note: Market level calculated according to the weighted wienerberger end market exposure incl. newbuild, renovation & infrastructure 23
Slide 24: Market Level in Q1 2024
OUTLOOK 2024 MARKET LEVEL IN Q1 2024 Development of market level Q1 2023 › New build: first signs of recovery in Europe › Renovation: stable Q4 2023 Q1 2024 › Infrastructure: on a solid level … but market Q1 2024 significantly below Q1 2023 Q1 2023 Q4 2023 Q1 2024 24
Slide 25: Q1 2024 Operating EBITDA Impacts
Q1 2024 Q1 2024 OPERATING EBITDA IMPACTS 1. Lower market levels vs. Q1 2023 especially in Western (Continental) Europe (FR/NL/DE/BE) EBITDA effect: € -40 mn All factors have 2. Extensive standstills in Q1 2024 already been to reduce inventory levels in ceramics Europe considered in the EBITDA effect
Slide 26: Solid Q1 2024 Performance Highlights
Q1 2024 SOLID Q1 2024 PERFORMANCE HIGHLIGHTS EFFECTIVE COST MANAGEMENT AND SELF-HELP INITIATIVES Revenue Operating EBITDA Operating EBITDA margin € 953 mn € 115 mn 12.1% (Q1 2023: € 1,052 mn | -9%) (Q1 2023: € 209 mn | -45%) (Q1 2023: 19.8% | -770 bps) Self-Help Contribution Cost management savings
Slide 27: Region Update
Q1 2024 REGION UPDATE Europe External revenues (in € mn) Q1 2024 Q1 2023 Chg. in % › Stabilization in new build in Europe West and Europe West 528.7 556.0 -5 first signs of recovery in Europe East Europe East 245.6 300.9 -18 › Renovation stable respectively slightly improving North America 178.3 195
Slide 28: Sale of Assets
SALE OF ASSETS CASH INFLOW FROM SALE OF ASSETS € ~100 mn cash inflow Strengthens liquidity and in the next contributes positively to our financial leverage 24 months 2828
Slide 29: Outlook 2024
OUTLOOK 2024 29
Slide 30: Guidance for 2024 Confirmed
OUTLOOK 2024 GUIDANCE FOR 2024 CONFIRMED › Assumptions for end markets unchanged › Pricing policy as foreseen FY 2024 guidance of › Self-help contribution according to plan operating EBITDA › Cost management savings higher € 860 – 890 mn Terreal CONFIRMED ✓ › Successful closing by the end of Februar
Slide 31: Operating EBITDA Development H1 & H2 2024
OUTLOOK 2024 OPERATING EBITDA DEVELOPMENT H1 & H2 2024 H1 2024 H2 2024 € ~400 mn € 460-490 mn operating EBITDA operating EBITDA FY 2024 guidance of operating EBITDA € 860–890 mn CONFIRMED € 115 mn Organic Growth 2024 incl. € 90mn Terreal Terreal Contribution contribution Operating EBITDA Prior Year
Slide 32: Our Strategy
MID-TERM DEVELOPMENT OUR STRATEGY Sustainability strategy Financial Industrial strategy strategy 32
Slide 33: Wienerberger End Market Expectations Beyond 2023
MID-TERM DEVELOPMENT WIENERBERGER END MARKET EXPECTATIONS BEYOND 2023 Estimated market recovery from 72% in 2023 to 86% in 2026, based on › Focus on innovation, cost savings, normalized margins and efficiency enhancement Operating › Value-creating acquisitions Organic growth, based on payback of gro
Slide 34: Contact / Financial Calendar
CONTACT Wienerberger AG Investor Relations Wienerbergerplatz 1, 1100 Vienna wienerberger.com/en/investors investor@wienerberger.com +43 1 60192 10221 FINANCIAL CALENDAR August 14, 2024 Results for the First Half-Year of 2024 November 12, 2024 Results for the First Three Quarters of 2024 34