Wienerberger Ag · VIE:WIE
Wienerberger — Investor Day (October 2023)
75 slides from Wienerberger's investor day presentation, Oct 10, 2023
Slide 1: Capital Markets Day 2023
WIENERBERGER CAPITAL MARKETS DAY 2023 1
Slide 2: Agenda
WIENERBERGER CAPITAL MARKETS DAY 2023 AGENDA 09:00 am (CET) 10:30 am (CET) Coffee break Management Presentation Wienerberger ecosystem Organic growth, ESG, M&A 11:00 am (CET) Presentation Financial track record Renovation Outlook Water management Q&A Session Q&A Session 12:30 pm (CET) Joint lunch 2
Slide 3: Your Presenters
WIENERBERGER CAPITAL MARKETS DAY 2023 YOUR PRESENTERS Heimo Scheuch Gerhard Hanke Doris Strohmaier Wolfgang Rainer CEO CFO CSO Piping Solutions COO Region North Europe 3
Slide 4: Wienerberger Ecosystem
wienerberger wie gi SH fs Hilo 2 et We ig ae a aa He ep mig), Mee ya) vay ag z WIENERBERGER ECOSYSTEM
Slide 5: We are a company that lives sustainability
WE ARE A COMPANY THAT lives sustainability 5
Slide 6: We live sustainability
WE LIVE SUSTAINABILITY WE CARE FOR A BETTER TOMORROW >200 years We are driving proven sustainable business model › Long-term strategy › Short-term targets 2023 & 2026 › decarbonization Sustainability › Pursuing a transparent › circular economy sustainability policy with clear is integrated into targ
Slide 7: We are a company that focuses on its employees
WE ARE A COMPANY THAT lives focuses on its sustainability employees 7
Slide 8: We focus on our employees
WE FOCUS ON OUR EMPLOYEES WE PUT THE PEOPLE AT THE CENTER >16 Employee satisfaction >20,000 training hours survey every employees per employee / year 2 years >50 languages spoken Group- Employee wide participation training and development program programs linked to success of company 8
Slide 9: We are a company that provides innovative system solutions
WE ARE A COMPANY THAT lives focuses on its provides sustainability employees innovative system solutions 9
Slide 10: We provide innovative system solutions
WE PROVIDE INNOVATIVE SYSTEM SOLUTIONS WE FOCUS ON BUILDING OUR PRODUCTS INTO SYSTEM SOLUTIONS FOR THE BENEFIT OF OUR CUSTOMERS As a customer-oriented company understanding the needs of our customers is key for our success With the transition to a provider of system solutions, we achieved greater cu
Slide 11: Highlights 2023
HIGHLIGHTS 2023 OUR ACHIEVEMENTS SO FAR IN 2023 Biggest acquisition in Wienerberger’s history: Terreal closing Strong performance expected year end despite significantly declining market environment Innovation rate First € 350mn of 30% sustainability-linked bond successfully placed and rising 11
Slide 12: Reorientation of Wienerberger proves effective
WIENERBERGER‘S STRONG PERFORMANCE REORIENTATION OF WIENERBERGER PROVES EFFECTIVE Markets significantly dropped Wienerberger with strong operating Successful continuation of EBITDA in H1 2023 of proactive cost management € 454mn and self-help Outperformance Strong EBITDA margin in H1 2023 of cost inf
Slide 13: Wienerberger Vision
WIENERBERGER VISION WE CARE FOR A BETTER TOMORROW We improve people’s quality of life and build a better world for future generations. Today 70% of revenues coming from building products contribute to net zero buildings 13
Slide 14: Wienerberger Values
WIENERBERGER VALUES SHAPING THE FUTURE WITH STRONG VALUES Respect connects us. Creativity brings us to life. Passion Trust drives us. grounds us. 14
Slide 15: Wienerberger Values
WIENERBERGER VALUES SHAPING THE FUTURE WITH STRONG VALUES Respect connects us. Creativity brings us to life. Passion Trust drives us. grounds us. 15
Slide 16: The Wienerberger Brands
THE WIENERBERGER BRANDS OUR STRONG LOCAL BRANDS PROMOTE PROXIMITY TO OUR CUSTOMERS EUROPE NORTH AMERICA ROOF solutions FACADE WALL solutions solutions >80% brand recognition PIPING solutions PIPING WALL FACADE solutions solutions solutions LANDSCAPING solutions 16
Slide 17: The Wienerberger Brands
THE WIENERBERGER BRANDS OUR STRONG LOCAL BRANDS ARE COMBINED IN THE WORLD OF WIENERBERGER ROOF EUROPE NORTH AMERICA SOLUTIONS FACADE solutions WALL Our diversity is consolidated SOLUTIONS >80% in a central structure brand recognition PIPING SOLUTIONS PIPING WALL solutions solutions LANDSCAPING SOLUT
Slide 18: Digitalization at Wienerberger
DIGITALIZATION AT WIENERBERGER THE WORLD OF WIENERBERGER IS SUPPORTED BY INTEGRATED IT INFRASTRUCTURE ACROSS THE GROUP Customer Cloud Industry Cloud Business Support Cloud Marketing, Sales, Service Production, Logistics and Supply Finance, Back Office, Knowledge, Chain Internal Processes Intelligent
Slide 19: Our Solution: One Platform for All
DIGITALIZATION AT WIENERBERGER OUR SOLUTION: ONE PLATFORM FOR ALL ONE Business Support Center per country ONE Country Finance Director per country ONE basis for processes, skills, know-how ONE 19
Slide 20: Before: Limited Knowledge of Our Customers
DIGITALIZATION AT WIENERBERGER BEFORE: LIMITED KNOWLEDGE OF OUR CUSTOMERS BEFORE Distributor 20
Slide 21: Today: Direct Contact with End Customers
DIGITALIZATION AT WIENERBERGER TODAY: WE ARE IN DIRECT CONTACT WITH OUR END CUSTOMERS TODAY Distributor Private Individual Planner Architect Contractor Developer 21
Slide 22: We Reach Our Customers via Multiple Platforms
WE KNOW OUR CUSTOMERS DEEP-DIVE: WE REACH OUR CUSTOMERS VIA MULTIPLE PLATFORMS Architect 22
Slide 23: We Digitalized Our Production Lines
DIGITALIZATION AT WIENERBERGER WE DIGITALIZED OUR PRODUCTION LINES PROCESS Raw Quality Packaging & Preparation Production Finalizing materials Control Delivery DATA STREAMS All collected data optimizes every step of the production process 23
Slide 24: Drastically Increased Digital Order Intake
DIGITALIZATION AT WIENERBERGER DRASTICALLY INCREASED DIGITAL ORDER INTAKE 2020 14% 2021 2022 % 24
Slide 25: Rise of Digitally Connected Production Lines
DIGITALIZATION AT WIENERBERGER RISE OF DIGITALLY CONNECTED PRODUCTION LINES 2020 1% 2021 2022 % 25
Slide 26: Our Benefits
DIGITALIZATION AT WIENERBERGER OUR BENEFITS ONE technology platform for the Local management can react swiftly to Significant enhancements in production changing market environment thanks to the active use of digitalization Direct access to our end customers Ability to sell system solutions 26
Slide 27: Organic Growth
wienerberger ORGANIC GROWTH
Slide 28: Key Underlying Megatrends Are Shaping Our Business
OFFERING THE RIGHT SOLUTIONS FOR GLOBAL TRENDS KEY UNDERLYING MEGATRENDS ARE SHAPING OUR BUSINESS Climate change Regulation Providing sustainable Tightening regulation building products and demands sustainable & system solutions energy-efficient building materials Energy Lack of skilled transition l
Slide 29: Key Underlying Megatrends Are Shaping Our Business
OFFERING THE RIGHT SOLUTIONS FOR GLOBAL TRENDS KEY UNDERLYING MEGATRENDS ARE SHAPING OUR BUSINESS Climate change Regulation Providing sustainable Tightening regulation building products and demands sustainable & system solutions energy-efficient building Megatrend Affordability materials We aim for
Slide 30: Regulatory Developments Will Further Support Our Business
ORGANIC GROWTH REGULATORY DEVELOPMENTS WILL FURTHER SUPPORT OUR BUSINESS IN THE MID- AND LONG-TERM Green Deal stimulus ❯ National implementation of European plans will support Wienerberger’s local business Minimum (EU) Energy ❯ EU Green Deal will fuel the renovation business Efficiency Standards ❯ U
Slide 31: Growth with Innovative System Solutions
ORGANIC GROWTH THROUGH INNOVATION WE GROW WITH INNOVATIVE SYSTEM SOLUTIONS FOR THE CHALLENGES OF TODAY AND TOMORROW Revenue and share of innovative products in € mn and % 4,976 30% Share of innovative products 2,356 TARGET 2026 >35% 32% Share of innovative products 23% 2012 2022 Innovative products
Slide 32: Targeting >30% of Revenue from System Solutions by 2026
ORGANIC GROWTH THROUGH INNOVATION WE ARE TARGETING >30% OF TOTAL REVENUE FROM SYSTEM SOLUTIONS BY 2026 TO SMART SOLUTIONS TO SYSTEM SOLUTIONS FROM SINGLE PRODUCTS Data transmission 32
Slide 33: Products Contributing to Net Zero Buildings
ORGANIC GROWTH THROUGH INNOVATION WE DRIVE THE DEVELOPMENT, GROWTH AND AVAILABILITY OF PRODUCTS CONTRIBUTING TO NET ZERO BUILDINGS ~39% of global energy and process-related CO2 emissions come from existing buildings By 2026, Wienerberger’s biggest impact Today on worldwide CO2 reduction: 70% 75% › s
Slide 34: Wienerberger
- o io) = o 2 wiener WIENERBERGER
Slide 35: End Market Development 2023
END MARKET EXPECTATIONS 2023 END MARKET DEVELOPMENT 2023: WEAKER IN EUROPE, NORTH AMERICA AS EXPECTED EUROPE NORTH AMERICA Wienerberger reacted quickly to the changed environment and continues to outperform NEW BUILD -35% -20% its end markets RENOVATION -15% -3% INFRASTRUCTURE -5% stable 35
Slide 36: Confirming Guidance 2023
WIENERBERGER 2023 CONFIRMING GUIDANCE 2023 ❯ In 2023 end markets dropped significantly, especially from Q2 2023 onwards Clear outperformance of end markets and strong ❯ However, despite the declining end markets solution business sustain Wienerberger’s high Wienerberger shows profitability strong re
Slide 37: Enhanced Resilience Underpinned by Strong Net Profit
WIENERBERGER 2023 ENHANCED RESILIENCE UNDERPINNED BY STRONG NET PROFIT Successful turnaround of Wienerberger Business model resulting in strong generation of net profit despite significant market declines >€ 330mn € 311mn Net profit 2023e 100 73 >€ 330mn 2021 2023e Net profit Market level Note: Mark
Slide 38: Expected Net Debt / EBITDA at Year End 2023
WIENERBERGER 2023 WIENERBERGER’S EXPECTED NET DEBT / EBITDA AT YEAR END 2023 2023e Net debt/EBITDA pre-Terreal 2023e Net Debt pre-Terreal <1.5x < € 1.1bn 2023e Net debt/EBITDA incl. Terreal <2.0x 38
Slide 39: On Track with Strong Financial Performance in 2023
WIENERBERGER 2023 WIENERBERGER IS ON TRACK WITH STRONG FINANCIAL PERFORMANCE IN 2023 Successful continuation of Wienerberger with strong operating EBITDA in H1 2023 of proactive cost € 454mn management and self-help Outperformance Strong EBITDA margin in H1 2023 of cost inflation of 8% (H1 2023) 20.
Slide 40: Our Focus on ESG
wienerberger We Fis OUR FOCUS ON ESG
Slide 41: Three 3-Year ESG Programs
ESG AT WIENERBERGER THREE 3-YEAR ESG PROGRAMS: A COMMITMENT TO SUSTAINABLE GROWTH Established ESG policy based on comprehensive three-year programs ensuring long-term sustainability focus Transparent targets and communication for a three-year period, enhancing stakeholder trust and engagement. ESG-r
Slide 42: Well on Track to Reach 2023 Sustainability Targets
ESG AT WIENERBERGER WIENERBERGER WELL ON TRACK TO REACH ITS 2023 SUSTAINABILITY TARGETS Achievements Targets 2023 expected in 2023 Decarbonization -15% CO2 emissions vs. 2020 Circularity 100% of new products reusable or recyclable 98% Biodiversity program for all our production Biodiversity sites in
Slide 43: Expansion of Sustainability Program Until 2026
SUSTAINABILITY PROGRAM 2023-2026 EXPANSION OF CURRENT SUSTAINABILITY PROGRAM UNTIL 2026 2026 Targets Decarbonization Circularity 2023 Targets Biodiversity Decarbonization Revenue from products Circularity supporting net zero buildings Biodiversity Water management Training & Development Waste manage
Slide 44: 2026 Environmental Targets 1/2
SUSTAINABILITY PROGRAM 2023-2026 2026 ENVIRONMENTAL TARGETS 1/2 25% reduction CO2 emissions scope 1 & 2 (2020 - 2026) Decarbonization 10% reduction CO2 emissions scope 3 (2022 - 2026) and Energy Mix 15% of renewable energy used in own operations (2023 - 2026) >80% of sales from highly durable produc
Slide 45: 2026 Environmental Targets 2/2
SUSTAINABILITY PROGRAM 2023-2026 2026 ENVIRONMENTAL TARGETS 2/2 Revenue from 75% of total revenue coming from building products contributing to net zero products supporting buildings1) net zero buildings 35 million m3 of water harvested, retained and saved through our products in Water infrastructur
Slide 46: 2026 Social Targets
SUSTAINABILITY PROGRAM 2023-2026 2026 SOCIAL TARGETS Zero harm (principle) Health & Safety 20,000 visible leadership hours (VLM) per year (2023 – 2026) 18h of training per employee per year (2023 - 2026) Training & 500 apprentices cumulatively trained (2023 - 2026) Development 30,000 cumulative numb
Slide 47: Revenue from Products Supporting Net Zero Buildings
SUSTAINABILITY PROGRAM 2023-2026 FOCUS ON: REVENUE FROM PRODUCTS SUPPORTING NET ZERO BUILDINGS Total revenue coming from building products contributing to net zero buildings: ❯ Buildings are responsible for ~39% of CO2 emissions 2026 Target ❯ Hence, the European Commission is focusing on 75% regulat
Slide 48: Well Equipped to Achieve Decarbonization Targets
DECARBONIZATION WE ARE WELL EQUIPPED TO ACHIEVE OUR DECARBONIZATION TARGETS Green Measures electricity *) › Switch to green energy Raw materials › a) for mechanical use (green electricity) 100 %: scope 1 and 2 › b) for thermal use (green electricity, ongoing Efficiency improvement incl. green gases)
Slide 49: Decarbonization CAPEX Until 2030
ESG CAPEX DECARBONIZATION CAPEX UNTIL 2030 – INCLUDED IN GROWTH CAPEX Scope 1 and 2 Emissions Estimated CAPEX Reduction target per program 2020 Base year Base year ESG program 1 -15% € 100mn 2023 ESG program 2 -25% € 200mn 2026 planned estimated ESG program 3 -40% € 300mn 2030 planned estimated 49
Slide 50: Sustainability-Linked Bond 2023
BOND 2023 WIENERBERGER TAKES ANOTHER STEP TOWARDS SUSTAINABILITY AND LINKS ITS FUNDING ACTIVITIES TO KEY ESG OBJECTIVES KPI 1 Sustainability-Linked Finance Framework First Sustainability- › Decarbonization of our own Linked Bond -25% operations and (KPI 1) successfully issued in KPI 2 › Increase rev
Slide 51: M&A
wienerberger
Slide 52: Strong M&A Track Record Since 2012
M&A TRACK RECORD STRONG M&A TRACK RECORD SINCE 2012 WITH POST- SYNERGIES MULTIPLE OF Ø 5.0X Our More than Several 40 thousand employees taken on criteria › Value creation potential › Strategic fit › Innovative strength acquisitions › Cultural fit 52
Slide 53: Acquisition of Meridian Brick
MERIDIAN BRICK ACQUISITION OF MERIDIAN BRICK – A TRUE SUCCESS STORY ❯ Successful turnaround in North America ❯ Market entry in most important US brick markets Texas and Oklahoma ❯ Tripled revenues & EBITDA in North America brick business ❯ Strong EBITDA enhancement, including significant synergies ❯
Slide 54: Strong Development in North America
Strong development in North America ❯ driven through acquisition of Meridian and ❯ excellent performance of piping business +190% € 945mn +400% € 325mn € 230mn € 46mn Revenue 2020 vs. 2022 EBITDA 2020 vs. 2022 54
Slide 55: Wienerberger and Terreal – Combining Forces
TERREAL WIENERBERGER AND TERREAL – COMBINING FORCES Closing to be 5 expected at the end of countries 29 2023 sites Doubling roofing sales to ~3,000 >75mn m2 employees annually 55
Slide 56: Wienerberger and Terreal – Combining Forces
TERREAL WIENERBERGER AND TERREAL – COMBINING FORCES Transformational growth opportunity › Acquisition of significant part of Terreal Group, a leading European supplier of innovative roof solutions › Enhancing Wienerberger’s presence in the largest roofing markets in Europe (France & Germany) with at
Slide 57: Synergies
TERREAL SYNERGIES Significant synergy potential resulting from Expected phasing of € 50mn EBITDA synergies › Cost synergies 2023 € 100mn Baseline More efficient Backoffice structure, ONE shared IT platform 2024 € 110mn Mainly cost synergies › Commercial synergies Expanding system solutions offering
Slide 58: Synergies
TERREAL SYNERGIES Immediately EPS accretive EV/EBITDA-Multiple pre synergies ~6.6x EBITDA run-rate 2023e € 100mn EV/EBITDA-Multiple post synergies ~4.4x EBITDA post synergies € 150mn Despite this difficult Net debt/EBITDA reported 2023e ~1.9x market environment Payback <4 years 58
Slide 59: Financial Track Record 2012-2022
FINANCIAL TRACK RECORD 2012-2022 59
Slide 60: Expanding Portfolio Towards Infrastructure and Renovation
FINANCIAL TRACK RECORD WIENERBERGER PLACED A STRONG FOCUS ON EXPANDING ITS PORTFOLIO TOWARDS INFRASTRUCTURE AND RENOVATION 2012 2022 Infrastructure Infrastructure 15% 22% Newbuild Newbuild 49% 65% € 2.4bn revenues € 5.0bn revenues We will continue to increase our exposure towards renovation & infras
Slide 61: Strong Organic Growth
FINANCIAL TRACK RECORD STRONG ORGANIC GROWTH… REVENUE EBITDA CASH CONVERSION +8% € 5.0 bn +17% € 1.0 bn +35.4pp 86.9% CAGR CAGR 51.5% € 2.4 bn € 0.2 bn 2012 2022 2012 2022 2012 2022 Note: Cash Conversion: (EBITDA reported – Maintenance CAPEX) / EBITDA reported 61
Slide 62: Strong EBITDA and Market Outperformance in 2023
FINANCIAL TRACK RECORD STRONG EBITDA AND MARKET OUTPERFORMANCE IN 2023 1200 110% Wienerberger 100% 1,020 96% guidance 2023100% 1000 93% 910 91% 91% 800-820 Market level (in %) 800 694 90% EBITDA (in € mn) 610 600 80% 443 73% 400 70% 200 60% 0 50% 2018 2019 2021 2022 2022 2023 Sustainable EBITDA Note
Slide 63: Outlook 2024
wienerberger OUTLOOK 2024
Slide 64: Cost Inflation 2024
OUTLOOK 2024 COST INFLATION 2024 Personnel costs Raw materials Energy Granulates ~+5% ~+6% ~+7% ~-1% High pressure expected Still inflation catch-up Still benefitting from Flat development in salary negotiations effects due to rising forward buying expected after decline due to inflation level perso
Slide 65: Comfortable with Net Debt / EBITDA Between 1.5 and 2x
OUTLOOK 2024 WE FEEL COMFORTABLE WITH A NET DEBT / EBITDA BETWEEN 1.5 AND 2X NET DEBT / EBITDA 3.0 › We significantly improved our Net Debt / EBITDA over the last ten years › We will end the year with <1.5x 2.0 › We feel comfortable within the range of 1.5-2.0x and steer our business activities to s
Slide 66: Normalized Working Capital Ratio of 20% at Year End
OUTLOOK 2024 PROACTIVE MEASURES KEEP NORMALIZED WORKING CAPITAL RATIO OF 20% AT YEAR END WORKING CAPITAL / SALES in % 26% Normal scenario 24% › Working capital level starts at 18-20% › Build-up in the generally weaker winter 22% months Working Capital / Sales › Beginning of reduction from early summ
Slide 67: Annual Maintenance Capex / Mandatory Capex
OUTLOOK 2024 ANNUAL MAINTENANCE CAPEX / MANDATORY CAPEX Maintenance Capex 2024 € 150mn Annual Maintenance Capex after Terreal integration € 170mn 67
Slide 68: Annual Growth Capex / Discretionary Capex Including ESG
OUTLOOK 2024 ANNUAL GROWTH CAPEX / DISCRETIONARY CAPEX INCLUDING ESG 2024 € 150-200mn Payback ~5x 68
Slide 69: M&A
OUTLOOK 2024 M&A 2024: Future M&A focus will remain on the Integration of Terreal expansion of Renovation and Water Management in Europe & US Beyond Terreal there is an attractive deal-pipeline in the fields of renovation and water management in Europe and the US 69
Slide 70: Strong Operating EBITDA in 2024 Expected
OUTLOOK 2024 STRONG OPERATING EBITDA IN 2024 EXPECTED Based on todays estimated end markets and including Terreal, operating EBITDA of Wienerberger shall be in the range of €~900 mn 70
Slide 71: Mid-Term Development
wienerberger MID-TERM DEVELOPMENT
Slide 72: End Market Expectations Beyond 2023
MID-TERM DEVELOPMENT WIENERBERGER END MARKET EXPECTATIONS BEYOND 2023 2024 2025 2026 Bottom-building Slight growth Normalized year market level Estimated marked level of 86, compared to strongest market in 2021 (market level: 100) Note: Market level according to the weighted Wienerberger end market
Slide 73: Mid-Term Strong Growth
MID-TERM DEVELOPMENT MID-TERM STRONG GROWTH € 170mn € >1.2bn 100mn 130mn € € € 800-820mn Estimated market recovery from Based on payback 73% in 2023 to of growth CAPEX, 86% in 2026, Terreal innovation and based on contribution in system solutions normalized year 3 margins EBITDA Terreal Organic Mark
Slide 74: Successfully Continue Its Growth Course
OUTLOOK WIENERBERGER WILL SUCCESSFULLY CONTINUE ITS GROWTH COURSE We will focus on… Portfolio expansion Organic growth Strong margins, towards through innovation proactive price and renovation and and system cost management infrastructure solutions 74
Slide 75: Wienerberger contact details
wienerberger | Wienerbergerplatz 1, 1100 Vienna, Austria | T +43 1 601920 | www.wienerberger.com