Wienerberger AG · VIE:WIE
Wienerberger — H1 2011 Earnings Presentation
29 slides from Wienerberger's earnings presentation, Aug 17, 2011
Slide 1: Investor and Analyst Meeting
Investor and Analyst Meeting Results H1 2011 | Capital Structure and Financing | Operating Segments | Share Buy-back | Outlook | Strategy Vienna, August 17, 2011 Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independently ve
Slide 2: Very Different Market Developments in Individual Markets
Very Different Market Developments in Individual Markets North America Further difficult market environment Eastern Europe Slight growth in PL, CZ and RUS Western Europe Further difficult market environment Slight growth in GER, F, B, CH in Southeastern Europe UK and Italy stable on low level NL wea
Slide 3: Overview H1 2011
Overview H1 2011 Significant increase in revenues and earnings at Group level: - Q1: also weather-related good start - Q2: further growth of revenues and earnings Business in first six months benefits from strong volume increases: - Western Europe: positive trend in France, Germany and Belgium |
Slide 4: Significant Increase in Operating Results
Significant Increase in Operating Results in € mn 1-6/2010 1-6/2011 Chg. in % Revenues 825.6 985.7 +19 Operating EBITDA 1) 78.3 123.4 +58 Operating EBITDA margin 9.5% 12.5% - Depreciation 95.0 96.3 +1 Operating EBIT 1) -16.7 27.1 >100 Operating EBIT margin -2.0% 2.7% - One-off effect Bramac / Tondac
Slide 5: Results H1 2011 by Region
Results H1 2011 by Region Revenues: € 985.7 mn | +19% EBITDA 1): € 123.4 mn | +58% Central-West North America Investments & Other North America 3% Europe -4% 6% 14% Investments & Other -3% Central-East Central-West Europe Central-East Europe 28% Europe 21% 36% North-West North-West Europe Europe 57%
Slide 6: Change in Revenues H1 2011 vs. H1 2010
Change in Revenues H1 2011 vs. H1 2010 +1% +1% 985.7 +17% +19% 825.6 Trends in H1 2011 Strong yoy volume growth in Q1 and sound volume development in Q2 against higher comparables Positive development of average prices in Q2 after a decline in Q1 Positive FX effects relate to CHF and Eastern E
Slide 7: Strong Improvement of Financial Results
Strong Improvement of Financial Results in € mn 1-6/2010 1-6/2011 Chg. in % Income from investments in associates -1.5 1.1 >100 Interest and similar income 8.5 4.7 -45 Interest and similar expenses -32.1 -22.7 +29 Other financial results -3.5 2.4 - Financial results -28.6 -14.5 +49 13 Stronger Gross
Slide 8: Increase in Trade Receivables due to Higher Sales Volumes
Increase in Trade Receivables due to Higher Sales Volumes Chg. in € mn 1-6/2010 1-6/2011 in % Increase/decrease in inventories -11.1 -2.7 +76 Increase/decrease in trade receivables -81.9 -124.1 -52 Increase/decrease in trade payables 23.0 7.5 -67 Increase/decrease in other net current assets 12.3 11
Slide 9: Capital Structure and Financing: Strong Balance Sheet
Capital Structure and Financing 17 Strong Balance Sheet Chg. in % in € mn 31.12.2009 30.6.2010 31.12.2010 31.3.2011 30.6.2011 vs. 2010 Equity 1) 2.547 2.572 2.526 2.414 2.467 +2 Net debt 408 485 375 530 530 0 Equity ratio 62 % 62 % 62 % 62 % 62 % - Gearing 16 % 19 % 15 % 22 % 21 % - No change in net
Slide 10: Development of Net Debt – H1 2011 in Detail
Development of Net Debt – H1 2011 in Detail +108.9 529.9 +74.8 530.0 +45.1 +11.7 +11.4 +32.5 +22.1 -99.5 -43.4 374.5 -8.1 in € mn 31/12/2010 Gross Total Hybrid Working 31/3/2011 Gross Total Di- Dividend Working Con- 30/6/2011 cash flow invest- coupon capital & cash flow invest- vestments capital & s
Slide 11: Corporate Bond 2011
Corporate Bond 2011 Wienerberger objectives Refinancing requirement Wienerberger 2012 Wienerberger bond 2005 will be due in April 2012 (outstanding volume: € 241 mn) 400 Secure financing at an early stage Bond Bank 2011-2018 Improve term structure 300 loans Secure attractive coupon in € mn 2
Slide 12: Central-East Europe
Central-East Europe Results 1-6/2011 Share of Group Share of Group Central-East Europe (in € mn) 1) 1-6/2010 1-6/2011 Chg. in % revenues 1-6/2011 EBITDA 1-6/2011 Revenues 233.3 272.7 +17 Operating EBITDA 2) 30.6 44.4 +45 28% 36% Operating EBITDA margin 13.1% 16.3% - Operating EBIT 2) -1.4 12.7 >100
Slide 13: Central-West Europe and North America
Central-West Europe Results 1-6/2011 Share of Group Share of Group Central-West Europe (in € mn) 1) 1-6/2010 1-6/2011 Chg. in % revenues 1-6/2011 EBITDA 1-6/2011 Revenues 173.6 207.3 +19 14% Operating EBITDA 2) 9.7 17.5 +80 21% Operating EBITDA margin 5.6% 8.4% - Operating EBIT 2) -6.6 2.1 >100 1) T
Slide 14: Investments & Other
Investments & Other Results 1-6/2011 Share of Group Share of Group Investments & Other (in € mn) 1) 1-6/2010 1-6/2011 Chg. in % revenues 1-6/2011 EBITDA 1-6/2011 -3% Revenues 5.3 53.1 >100 3% Operating EBITDA 2) -11.2 -3.9 +65 Operating EBITDA margin <-100% -7.3% - Operating EBIT 2) -14.0 -9.2 +34 1
Slide 15: Outlook 2011
Outlook 2011 North America Western Europe Central-East Europe Market Market Market No recovery expected Positive trend continuing Positive development in Volume growth in Germany, Poland, Czech Republic and France, Belgium and Russia Switzerland Market environment in South- Stable develo
Slide 16: Share Buy-back Planned
Share Buy-back Planned Conditions of share buy-back Start and duration from August 22 through November 22, 2011 Volume maximum of 2,350,535 shares in % of share capital 2% Purchase price from € 1.00 to € 26.20 Purpose: Using shares as currency for transactions, if available and value creating 31 W
Slide 17: Wienerberger: Innovation Leader of the Industry
Wienerberger: Innovation Leader of the Industry Innovation as core success factor: - Steady development and improvement of energy-efficient products group-wide - Goal: solution concepts for energy-efficient buildings (ground breaking e4 house) Focus on marketing and sales: - Sales Academy - Cust
Slide 18: Thank you for your attention!
Thank you for your attention! 36
Slide 19: Appendix: Wienerberger at a Glance
Appendix: Wienerberger Group Wienerberger at a Glance | Shareholder Structure | Product Groups | Market Positions | Competitive Advantage | Growth Potential 37 Wienerberger at a Glance International building materials group - 27 countries + 5 export markets - 234 plants in Europe, North America an
Slide 20: Wienerberger Product Groups
Wienerberger Product Groups Clay blocks Roof tiles Facing bricks Pavers Pipe systems (Wall) (Roof) (Facade) (Surface) No. 1 in Europe, Co- Leading positions in Leading positions in No. 1 worldwide No. 1 in Europe 1) Leader in USA Europe Europe Revenues: € 625mn Revenues: € 441mn Revenues: € 48
Slide 21: Wienerberger Brick Markets in Europe
Wienerberger Brick Markets in Europe 1 1 Europe (total): No. 1 1 1 1 1 Clay Blocks: 1 2 - No competing international groups 1 - Mainly family businesses (local producers) - Wienerberger the only multinational player 33 1 1 11 1 Facing Bricks: 1 1 1 1 - Family businesses (local producers) as 1 ma
Slide 22: Brick Markets in North America; Competitive Advantage
Wienerberger Brick Markets in North America USA: 5 major players totaling ~65% of market share Quebec Main competitors: Ontario Boral, ACME, HeidelbergCement and 1 CRH Midwest Northeast 20% Canada: Market entry 5 2 3 7% 1 in 2007 West 3 6 2 3 3% 3 1 2 2 1 1 1 1 1 1 6 4 5 Southeast Southwest 6
Slide 23: Wienerberger Benefits from a Strong Operational Basis
Wienerberger Benefits from a Strong Operational Basis Leading market positions in core businesses Modern, efficient plant network Sound capital structure - Gearing of only 21% Premium, innovative product portfolio - Infill blocks | plane ground blocks | sturmFIX High level of system compet
Slide 24: Utilization of Growth Opportunities
Utilization of Growth Opportunities INTERNAL EXTERNAL GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES Spare System Innovative Expansion in Development Capacity Provider Products Core Business Opportunities 47 Capacity Development 2007 – 2010 Spare Capacity Mothballed Capacity Closed New change CEE, France
Slide 25: Product Innovation Clay Blocks: Infill Blocks
Product Innovation Clay Blocks: Infill Blocks Clay blocks filled with perlite (volcanic material) or mineral wool Integrated insulation – no additional insulation material needed to meet EU’s 2020 standards Example: volume development in Germany +17% +25% 2008 2009 2010 Note: figures represent
Slide 26: Wienerberger as One-stop Shop for Roofers
Wienerberger as ”One-stop Shop” for Roofers KoraTech® Technical Roof Accessories KoraTech: Enlargement of the Wienerberger product portfolio Non-ceramic accessories “One-stop shop” for the roofer 1 2 3 4 5 Ridge and hip roll Ventilation system Snow retention Valley Underlay 6 7 8 9 10 11 Storm
Slide 27: Product Innovation Concrete Pavers and Pipelife
Product Innovation Concrete Pavers Patented paving system for high loaded circulation area System for private gardens and areas with natural stone appearance Pflastersystem Einstein® Sales development Semmelrock Group +45% +51% +51% Product system Bradstone® in natural stone appearance 2007 2008
Slide 28: Steinzeug-Keramo: Product Innovation Ceralong S
Steinzeug-Keramo: Product Innovation Ceralong S Speed in production process: 22 hours instead of ~14 days - Low energy expenditure in production cuts production costs - High energy efficiency enhances sustainability of the products Innovative premium product due to length and high stability: - E
Slide 29: External Growth Potential
External Growth Potential Only value-creating projects will be realized (CFROI > 11.5%) Expansion in core business: - Use of opportunities in Wienerberger markets in order to strengthen the market position - Bolt-on projects (new plant construction, smaller acquisitions) in markets with future o