Wienerberger AG · VIE:WIE
Wienerberger — FY2009 Earnings Presentation
35 slides from Wienerberger's earnings presentation, Mar 24, 2010
Slide 1: Final Results 2009
Final Results 2009 Results in Detail | Wienerberger Markets 2009 | Financing and Capital Structure | Strategy | Side Note: Sustainability | Outlook 2010 March 24, 2010 Disclaimer (1) Not for publication or distribution in the United States, Canada or Japan or Australia This preliminary information d
Slide 2: Disclaimer (2)
Disclaimer (2) This Presentation and the offer of the Securities based on this Presentation, when made, are only addressed to and directed, in member states of the European Economic Area (other than the United Kingdom) which have implemented the Prospectus Directive (each, a “relevant member state”)
Slide 3: Wienerberger Building Value: 2009 measures
ms Wienerberger Building Value Or some of the tough measures we implemented in 2009. But they were a necessary investment in our future. REVENVES EBITDA Wienerberger Building Value -25% in revenues and -53% in operating EBITDA
Slide 4: Capacity Adjustments Done
7 Capacity Adjustments Done 2009 2009 Plant closures Mothballings Total Central-East Europe 11 8 19 North-West Europe 5 - 5 Central-West Europe 4 - 4 North America 3 - 3 Wienerberger Group 23 8 31 Reduction of production capacity 2008 2009 Total Wall -8% -13% -21% Roof - -2% -2% Facade -8% -15% -23%
Slide 5: Investments Limited to a Minimum
9 Investments Limited to a Minimum in € mn 2008 2009 Chg. in % Maintenance capex 98.4 62.7 -36 in % of depreciation 49% 33% - Growth investments 407.2 71.4 -82 Total investments 505.6 134.1 -73 Target 2010: € 120 mn (€ 95 mn maintenance | € 25 mn growth) 10
Slide 6: Inventories Considerably Decreased
11 Inventories Considerably Decreased in € mn 31/12/2008 31/12/2009 Inventories 720.0 552.4 € -167.6 mn (-23%) Target of € 100 mn reduction in inventories clearly outperformed 12
Slide 7: Strong Increase of Free Cash Flow
13 Strong Increase of Free Cash Flow in € mn 2008 2009 Chg. in € mn Chg. in % Gross cash flow 300.9 52.5 -248.4 -83 Change in working capital 1) -38.1 238.4 +276.5 >100 Maintenance capex -98.4 -62.7 +35.7 +36 Divestments and other 31.0 22.6 -8.4 -27 Free cash flow 195.4 250.8 +55.4 +28 1) Adjusted f
Slide 8: Net Debt Cut by More Than Half
15 Net Debt Cut by More Than Half in € mn 2006 2007 2008 2009 Chg. in % Equity 1) 1,591.4 2,672.7 2,497.2 2,547.0 +2 Net debt 1,159.8 566.8 890.2 408.0 -54 1) Including non-controlling interests and hybrid capital (100% equity according to IFRS) 16
Slide 9: Restructuring Completed
17 Restructuring Completed Leading market positions - Market leader in our core business Strong capital structure - Gearing of 16% High-quality, innovative product portfolio - Plane ground blocks | Dryfix® system | infill blocks | sturmFIX Utilize head start: focus on operating business 18
Slide 10: Results 2009 Key Figures 2009
Results 2009 19 Key Figures 2009 in € mn 2008 2009 Chg. in % Revenues 2,431.4 1,816.9 -25 Operating EBITDA 1) 440.1 208.6 -53 Operating EBITDA margin 18.1% 11.5% - Operating EBIT 1) 239.8 19.0 -92 Restructuring and impairments 2) -81.7 -277.0 <-100 Profit after tax 3) 103.3 -258.7 <-100 Free cash fl
Slide 11: Results 2009 by Region
Results 2009 by Region Revenues: € 1,816.9 mn | -25% EBITDA 1): € 208.6 mn | -53% Central-West North America North America Investments & Other Europe -6% 8% -2% Investments & Other 15% -10% Central-East Central-West Europe Europe 32% 22% Central-East Europe 52% North-West Europe North-West 49% Europ
Slide 12: Change in EBITDA by Region
Change in EBITDA by Region 2009 vs. 2008 440 -xx -53% -153 +1 209 -41 -10 -28 EBITDA 1) Central-East North-West Central-West North Investments EBITDA 1) 2008 Europe Europe Europe America & Other 2009 Note: in € mn Central-East Europe North-West Europe Central-West Europe North America 1) Before rest
Slide 13: Weakening of All Markets in 2009
Weakening of All Markets in 2009 Central-East Europe: partly significant decline in demand Major Western European markets at low level - Signs of stabilization in UK North America very disappointing - Rising unemployment -> Foreclosures vs. housing starts 25 Central-East Europe (1) Results 2009 Shar
Slide 14: Central-East Europe (2) North-West Europe (1)
Central-East Europe (2) Results 2009 Share of Group Share of Group Central-East Europe (in € mn) 2008 2009 Chg. in % revenues 2009 EBITDA 2009 Revenues 899.3 582.7 -35 Operating EBITDA 1) 262.0 108.8 -58 32% 52% Operating EBITDA margin 29.1% 18.7% - Operating EBIT 1) 193.4 44.8 -77 1) Before restruc
Slide 15: North-West Europe (2) Central-West Europe
North-West Europe (2) Results 2009 Share of Group Share of Group North-West Europe (in € mn) 2008 2009 Chg. in % revenues 2009 EBITDA 2009 Revenues 904.2 729.2 -19 Operating EBITDA 1) 143.9 102.5 -29 Operating EBITDA margin 15.9% 14.1% - 49% 49 % 40 40%% Operating EBIT 1) 73.2 37.1 -49 1) Before res
Slide 16: North America
North America Results 2009 Share of Group Share of Group North America (in € mn) 2008 2009 Chg. in % revenues 2009 EBITDA 2009 Revenues 234.3 149.0 -36 8% Operating EBITDA 1) 15.1 -13.3 <-100 Operating EBITDA margin 6.4% -8.9% - Operating EBIT 1) -4.0 -35.4 <-100 1) Before restructuring costs and im
Slide 17: Strong Balance Sheet
Strong Balance Sheet in € mn 2006 2007 2008 2009 Chg. in % Equity 1) 1,591.4 2,672.7 2,497.2 2,547.0 +2 Net debt 1,159.8 566.8 890.2 408.0 -54 Equity ratio 43% 62% 57% 62% - Gearing 73% 21% 36% 16% - 1) Including non-controlling interests and hybrid capital (100% equity according to IFRS) 33 Strong
Slide 18: Rigorous Reduction of Net Debt; Covenants
Rigorous Reduction of Net Debt (31/12/2008 – 31/12/2009) +134.1 +32.5 890.2 -24.6 -52.5 -251.6 in € mn 408.0 -320.1 Net debt Gross Total Di- Hybrid coupon Working Capital Net debt 31/12/2008 cash flow investments vestments capital & increase 31/12/2009 others 35 Covenants Waiver / amendment of exist
Slide 19: Term Structure as of December 31, 2009
Term Structure as of December 31, 2009 600 547.2 500 Refinancing requirements low through end of 2011 400 2012: scheduled maturity for in € mn 300 Bond: € 400 mn 2005 bond 200 116.4 114.7 97.8 100 67.2 0 2010 2011 2012 2013 since 2014 37 Tender Offer 2005 Bond / Issue of New Bond 38
Slide 20: Overview of the Transactions
Overview of the Transactions Tender offer for 2005 bond (due in April 2012) - Tender at 100% - Maximum volume € 200 million Issue of new bond - Up to € 200 million - Denomination € 1,000 and 4¼-year term Improvement of term structure up to 2013 Increase in financial flexibility 39 Tender Offer – Sch
Slide 21: Emission of New Bond – Terms of the Notes
Emission of New Bond – Terms of the Notes € 200 mn 4.875%* Notes 2010 – 2014 Volume Up to € 200 mn Denomination € 1,000 Coupon 4.875%* p.a., payable annually Tenor 4¼ years, bullet Bookbuilding March 24 until March 25, 2010 Subscription period March 29 until March 31, 2010 Payment date April 7, 2010
Slide 22: Wienerberger Bond – Attractive Investment With Solid Foundation
Wienerberger Bond – Attractive Investment With Solid Foundation Solid foundation - Strong capital structure (gearing of 16%) - Strong free cash flow (+28% in crisis year 2009) - Experienced management (successful restructuring) Attractive investment - 4.875%* coupon (vs. low interest rates) - Reliab
Slide 23: Focus Remains on Free Cash Flow Maximization
Focus Remains on Free Cash Flow Maximization Wienerberger Wall, Facade, Roof, Surface Free Cash flow Maximization Growth through innovative Growth through unutilized Growth through development / products capacities expansion of markets Plane ground blocks / Dryfix® Mothballed capacity: Intensify mar
Slide 24: Strategy – Product Group Wall
Strategy – Product Group Wall Further development and rollout of country specific product solutions - Specific insulation/acoustic/mechanical requirements - Building traditions - Construction costs Further strengthen customer relationships - Increase sales efforts - Offering system solutions - Partn
Slide 25: Strategy – Product Group Roof
Strategy – Product Group Roof Grow with the market (focus on regional markets) Differentiate from competition through innovative products Expand strong market positions in renovation market Benefit from new trading business opportunities (KoraTech®) 49 Side Note: Sustainability at Wienerberger 50
Slide 26: Principles of Sustainability
Principles of Sustainability For Wienerberger sustainability means: - Focus on economic, ecological and social aspects - Development and production of products from natural raw materials Sustainability is an integral part of our success Wienerberger has implemented numerous measures to support susta
Slide 27: Insulation Alone Doesn’t Make a House Energy-efficient
Insulation Alone Doesn’t Make a House Energy-efficient Primary energy requirements (PER) as key indicator: - Heating energy demand only represents 10% of total energy requirements in many cases - Remaining 90%: warm water, electricity, ventilation and other Integrated view of buildings required (= “
Slide 28: Outlook 2010
Outlook 2010 55 Outlook 2010 – Visibility Limited North America / UK Continental Europe CEE / Emerging Markets Market Market Market UK: slight upward trend Downward trend slowing No turnaround visible yet North America: bottoming out, GER: slight improvement Further development unclear uncertainty a
Slide 29: Our Major Concerns vs. Upside Potential
Our Major Concerns vs. Upside Potential Availability of financing Faster than expected Rising unemployment recovery Low consumer confidence Access to financing easing Pent-up demand in CEE can Increase of inflation boost sales Increase of interest rates Stronger governmental spending on housing Deve
Slide 30: Dividend Recommendation for 2009
Dividend Recommendation for 2009 Capital increase in September 2009 (net proceeds of € 320 mn) Visibility still limited Careful use of proceeds to create value Waiver of dividend 59 Despite Low Visibility and Weak Q1: Improvement in Earnings Expected For 2010 Cost savings Capacity reserves + 10% wal
Slide 31: Appendix: Wienerberger Group
Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 Tel +43 1 60192 - 497, Fax +43 1 60192 - 466 investor@wienerberger.com | www.wienerberger.com 61 Appendix: Wienerberger Group Wienerberger at a Glance | Market Positions | Product Groups | Competitive Advantage | Sh
Slide 32: Wienerberger at a Glance
Wienerberger at a Glance International building materials group - 27 countries + 5 export markets - 227 plants in Europe, North America and India Founded 1819 in Vienna Focus on ceramic based building materials - Clay blocks (wall) - Facing bricks (facade) - Clay roof tiles (roof) - Pavers (surface)
Slide 33: Wienerberger Roofing Markets in Europe
Wienerberger Roofing Markets in Europe 1 Europe (total): No. 1 1 1 in clay roof tiles 1 1 Major competitors: Monier (formerly 3 2 Lafarge Roofing), Etex, Imerys, Terreal 1 11 2 Some privately owned mid-size competitors in Germany 1 1 1 1 1 11 2 4 1 1 1 1 1 1 11 1 1 1 1 11 1 4 1 Wienerberger plants W
Slide 34: Restructuring Completed; Competitive Advantage
Restructuring Completed Restructuring costs and impairment of assets: € 153.7 mn - € 52.6 mn cash out Restructuring - € 68.8 mn special write-downs program - € 32.3 mn impairment of assets Impairment charges to goodwill in € mn 2009 North America 48.2 North-West Europe 33.7 Central-West Europe 29.4
Slide 35: Wienerberger Shareholder Structure
Wienerberger Shareholder Structure by country Other Switzerland 6% France 2% 100% free float 6% Northern Europe 3% USA 36 % One major institutional investor disclosed: Germany 5% - Dodge & Cox, USA, owns more than 10% of the shares Austria 13 % Canada 1% UK & Ireland 28 % Status: December 2009 | 117