Wienerberger Ag · VIE:WIE
Wienerberger — Q1 2022 Earnings Presentation
33 slides from Wienerberger's earnings presentation, 2022
Slide 1: Results Q1 2022
wienerberger RESULTS Q1 2022
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: Intro
INTRO RESULTS Q1 2022
Slide 4: Market Environment Q1 2022
MARKET ENVIRONMENT Q1 2022 WE ARE FULLY AWARE OF THE CURRENT VOLATILE SITUATION, BUT WE ARE IDEALLY POSITIONED TO MASTER THESE CHALLENGES ENVIRONMENT wienerberger › Sustained high demand – wienerberger across all markets & product groups remains geared › Geopolitical instability › Reinforced local b
Slide 5: Best First Quarter in Our History
Q1 2022 BEST FIRST QUARTER IN OUR HISTORY Revenue EBITDA reported € 1,157 mn € 228 mn (Q1 2021: € 797 mn | +45%) (Q1 2021: € 106 mn | >100%) Net result EBITDA margin € 113 mn 19.7% (Q1 2021: € 27 mn | >100%) (Q1 2021: 13.4% | +6.3pp) 5
Slide 6: Sustained High Demand Across All Markets and Product Groups
Q1 2022 SUSTAINED HIGH DEMAND – ACROSS ALL MARKETS AND PRODUCT GROUPS New build Renovation Infrastructure › Mild winter › Strong demand › Healthy demand compared to Q1 2021 especially for roof, façade, piping solutions across Europe & North America › Sustained high demand › Renovation gained momentu
Slide 7: Continuous Transformation of Our Product Portfolio
PRODUCT PORTFOLIO CONTINUOUS TRANSFORMATION OF OUR PRODUCT PORTFOLIO WITH FOCUS ON INNOVATION & SYSTEM SOLUTIONS 1 › Today, our portfolio ranges from roof and wall systems 2 3 to façade solutions for the entire building envelope… › …and includes complete solutions for safe and secure energy and wate
Slide 8: Further Complemented by Sustainable Innovations
PRODUCT PORTFOLIO FURTHER COMPLEMENTED BY SUSTAINABLE INNOVATIONS CO2 neutral bricks Solar roof tiles Flat roof solutions › First Wienerberger CO2-neutral brick › Solar cells combined with ceramic roof tile › Sales cooperation with Leadax for Europe production (Belgium) › Improves customers’ CO2 foo
Slide 9: Our Contribution to Climate Change
SUSTAINABLE PRODUCTS + SUSTAINABLE COMPANY = wienerberger OUR CONTRIBUTION TO CLIMATE CHANGE ….AND REDUCE OUR WE IMPROVE OUR CUSTOMERS‘ CO2 FOOTPRINT… OWN CO2 EMISSIONS With our solutions we improve By 2030, we reduce our own the thermal efficiency of the building envelope by: CO2 emissions by: 80%
Slide 10: Significant Growth Steps Done in 2021
UPDATE M&A AND PORTFOLIO OPTIMIZATION SIGNIFICANT GROWTH STEPS DONE IN 2021 Acquisition of FloPlast & Acquisition of Cork Plastics Struxura Strong contributions to UK business High demand for prefab solutions Significant synergies –building envelope tackling the shortage of skilled labor and water m
Slide 11: Fully on Track to Achieve Our 2023 ESG Targets
UPDATE & HIGHLIGHTS ESG | ENVIRONMENT FULLY ON TRACK TO ACHIEVE OUR AMBITIOUS 2023 ESG TARGETS Decarbonization Circular Economy Biodiversity 2023 target: 2023 target: 2023 target: -15% CO2e1) emissions vs. 2020 100% of new products reuseable or recylable Biodiversity program for all sites in place 2
Slide 12: Energy Demand & Supply: Energy Policy Embedded in ESG Strategy
DECARBONIZATION ENERGY DEMAND & SUPPLY: WIENERBERGER ENERGY POLICY EMBEDDED IN ESG STRATEGY CLEAR GOALS: LESS ENERGY DEMAND, LESS CO2 CONSUMPTION, GREATEST POSSIBLE AVAILABILITY FORWARD-LOOKING ENERGY MANAGEMENT ESG CAPEX -40% CO2 for new technologies aimed at decarbonization reduction until 2030 wi
Slide 13: Energy Demand & Supply: Strategically Flexible in Choosing Energy Source
DECARBONIZATION ENERGY DEMAND & SUPPLY: WE ARE STRATEGICALLY FLEXIBLE IN CHOOSING OUR ENERGY SOURCE ACTIVE INVESTIGATION OF ALTERNATIVES PRACTICAL EXAMPLE – › No uniform European energy strategy Fully electrified brick production: › Country-by-country approach First CO2 neutral › Based on availabili
Slide 14: Financials
wienerberger EHNANCIALS
Slide 15: Record Results in Q1
Q1 2022 RECORD RESULTS IN Q1 External revenues (in € mn) Q1 2022 Q1 2021 Chg. in % Record results based on consistently high demand Wienerberger Building Solutions 617.7 478.5 +29 in all business units despite volatile supply markets and high uncertainty Wienerberger Piping Solutions 331.1 240.7 +38
Slide 16: Wienerberger Building Solutions
Q1 2022 | WIENERBERGER BUILDING SOLUTIONS STRONG DEMAND FOR INNOVATIVE PRODUCT SOLUTIONS IN NEW BUILD AND RENOVATION › System solutions for the entire building envelope › Continued positive market Wienerberger › Clay blocks & facing bricks, roof tiles, concrete pavers sentiment and strong demand for
Slide 17: Wienerberger Piping Solutions
Q1 2022 | WIENERBERGER PIPING SOLUTIONS STRONG PERFORMANCE DESPITE CONTINUED HIGHLY DYNAMIC DEVELOPMENT FOR INPUT COSTS Wienerberger › Piping solutions for buildings and infrastructure › Stable demand for Inhouse and Piping › Pipelife plastic pipes & Steinzeug-Keramo ceramic pipes infrastructure sol
Slide 18: North America
Q1 2022 | NORTH AMERICA GOOD MARKET ENVIRONMENT AND STRONG CONTRIBUTIONS FROM ACQUISITION OF MERIDIAN BRICK › Innovative products and system solutions North › Positive market environment in › Facing bricks, concrete & calcium silicate products, plastic pipes America › Located in Canada and U.S. Cana
Slide 19: Revenue Development Q1 2022
REVENUE DEVELOPMENT Q1 2022 STRONG ORGANIC GROWTH OF +30%, TOTAL REVENUES UP +45% +30% organic 1,157 3 235 121 797 in € mn Revenues Q1 2021 Scope Organic FX Revenues Q1 2022 +45% Note: Rounding differences may arise from automatic processing of data 19
Slide 20: EBITDA Development Q1 2022
EBITDA DEVELOPMENT Q1 2022 STRONG ORGANIC GROWTH OF +98%, TOTAL EBITDA UP +115% +98% organic 225 2 103 105 16 in € mn Operating Scope Organic 1) FX Operating EBITDA Q1 2021 EBITDA Q1 2022 +115% Note: Rounding differences may arise from automatic processing of data 1) Including self help initiatives
Slide 21: Organic EBITDA Doubling and Further Growth Out of M&A
EBITDA DEVELOPMENT Q1 2022 ORGANIC EBITDA DOUBLING AND FURTHER GROWTH OUT OF M&A EBITDA DEVELOPMENT Reported Operating +115% +115% EBITDA adjustments Q1 2022 Q1 2021 in € mn EBITDA reported 228.3 106.4 Sale of assets1) -3.0 -3.1 Structuraladjustments2) 0.2 1.7 228 226 OperatingEBITDA 225.5 105.0 106
Slide 22: Growth by Self Help
GROWTH BY SELF HELP ALREADY € 13 MN DELIVERED IN Q1… … AND € 45 MN EXPECTED FOR FY 2022 EBITDA CONTRIBUTION EXPECTED PROGRAM CONTRIBUTION IN 2022 Innovation & organic growth ~40% Impact on revenues and cost of sales Manufacturing excellence ~35% Impact on cost of sales 32 45 Procurement ~20% Impact
Slide 23: Energy Forward Buying Policy
ENERGY FORWARD BUYING POLICY WE HAVE MANAGED TO KEEP ENERGY COSTS WELL UNDER CONTROL AND REMAINED A RELIABLE & PREDICTABLE PARTNER TO OUR CUSTOMERS WIENERBERGER ENERGY OUTLOOK FOR THE COMING YEARS: ENERGY STRATEGY Energy volumes ensured for 2022-2024 (as of 31 March 2022) Our policy is to buy gas an
Slide 24: Income Statement
INCOME STATEMENT OUTSTANDING PERFORMANCE IN OPERATING BUSINESS LED TO AN EXCELLENT PROFIT GROWTH in € mn Q1 2022 Q1 2021 Chg. in % Revenues 1,156.6 796.5 +45 Operating EBITDA 225.5 105.0 >100 EBITDA 228.3 106.4 >100 Operating EBIT 160.3 48.8 >100 Impairment charges to assets -13.2 0.0 <-100 EBIT 147
Slide 25: Cash Flow Statement
CASH FLOW STATEMENT STRONG OPERATING PERFORMANCE WITH GOOD CASH GENERATION DESPITE SEASONAL BUILD-UP OF WORKING CAPITAL in € mn Q1 2022 Q1 2021 Chg. in € mn Chg. in % Gross cash flow 209.1 84.3 124.8 >100 Change in working capital -255.5 -203.6 -52.0 -26 Maintenance Capex -21.4 -21.6 0.2 +1 Divestme
Slide 26: Financial Highlights Q1 2022
FINANCIAL HIGHLIGHTS Q1 2022 RECORD FIRST QUARTER IN THE HISTORY OF WIENERBERGER – STRONG VALUE CREATION FOR SHAREHOLDERS Significant earnings Organic growth Strong cash generation contributions in Q1 2022 Very strong 30% organic Self help: € 13 mn High cash conversion rate of growth in Q1 2022 M&A:
Slide 27: Outlook
OUTLOOK
Slide 28: Market Expectations Q2 2022
MARKET EXPECTATIONS Q2 2022 GOOD MARKET ENVIRONMENT IN Q2 2022 – LIMITED VISIBILITY FOR H2 2022 Market growth (>2%) Stable development Market decline (<2%) WESTERN CENTRAL & NORTH NORDICS EUROPE EASTERN EUROPE AMERICA NEW BUILD → → → RENOVATION 1) INFRASTRUCTURE → → → 1) Potential growth
Slide 29: Cost Inflation 2022
COST INFLATION 2022 INCREASING COST INFLATION EXPECTED TO CONTINUE AND TO REACH UP TO 10% OVER THE WHOLE GROUP FOR FY 2022 Plastics Raw Materials Personnel Energy › Price inflation continued › Energy surcharges started to be › Lack of skilled labor and sharp › High volatility still remains in pushed
Slide 30: Outlook 2022: EBITDA Target Confirmed
OUTLOOK 2022 WIENERBERGER EBITDA TARGET 2022 CONFIRMED: € 750-770 MN Assumptions for guidance confirmation Guidance for the year 2022 › Operating in a good market environment REVENUE › Expectation of further increase in demand in Q2 2022 › No significant gas shortage expected in Europe in Q2 2022 GD
Slide 31: Wienerberger 2030: Renovation & Infrastructure as Growth Drivers
WIENERBERGER 2030 RENOVATION & INFRASTRUCTURE AS THE FUTURE DRIVERS OF GROWTH FOR WIENERBERGER Renovation Water & Energy Management We are ideally positioned to capitalize on growth opportunities We consistently rely on: › We offer the ideal products: innovative & sustainable system solutions › Inno
Slide 32: Our Program Towards 2030
WIENERBERGER 2030 OUR PROGRAM TOWARDS 2030… Maintenance Growth & ESG M&A Dividends CAPEX › Innovative products: › Strong M&A pipeline › Commitment to › Dividend policy to pay 1/3 of total revenues in-line with strategic continuously invest in out 20-40% of free priorities maintaining and cash flow o
Slide 33: An Even Stronger and More Resilient Wienerberger
WIENERBERGER 2030 …WILL RESULT IN AN EVEN STRONGER AND MORE RESILIENT WIENERBERGER 2021 2030 Infrastructure 22% Infrastructure 25% New Build New Build Residential Residential 49% 40% Renovation Renovation 35% 29% Strengthened market exposure to renovation 33