Slide 1: 151st Annual General Meeting WIENERBERGER AG
151st Annual General Meeting WIENERBERGER AG
Slide 2: Disclaimer
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 correctn
Slide 3: Agenda
Agenda Overview FY 2019 Wienerberger Strategy Covid-19 Update & Outlook 2020 3
Slide 4: 2019 – our operating market environment
2019 – our operating market environment ~2% Infrastructure in Europe1) ~ 1% single family ~ 1% homes in US housing market in Europe 2) Overall broadly flat market environment with softening demand trends in H2 in certain core markets 1) Growth rates weighted by revenue and application // 2) Estimate
Slide 5: 2019 – another record year for Wienerberger
2019 – another record year for Wienerberger Revenue growth by 5% to € 3.5 bn Record result in 200y history: EBITDA LFL € 587 mn Mid-term target of € 600 mn already achieved in 2019 (€ 610mn) 5
Slide 6: Growth drivers in 2019
Growth drivers in 2019 Upgrade of product mix Enhanced innovation & digitalization Transforming toward system solutions Fast Forward program 6
Slide 7: Income statement
Income statement in € mn 2019 2018 Chg. in % Revenues 3,466.3 3,305.1 +5 EBITDA LFL 587.5 475.3 +24 EBITDA 610.0 442.6 +38 EBIT 362.7 239.8 +51 Financial result -47.4 -44.5 -7 Profit before tax 315.3 195.3 +61 Income taxes -52.5 -48.5 -8 Profit after tax 262.8 146.9 +79 Hybrid coupon and non-control
Slide 8: Cash flow development
Cash flow development in € mn 2019 2018 Chg. in € mn Chg. in % Gross cash flow 476.7 326.5 +150.2 +46 Change in working capital 1) -46.9 -7.1 -39.8 <-100 Maintenance capex -140.1 -130.3 -9.8 -8 Divestments and other 39.3 83.3 -44.1 -53 Lease payments 2) -42.9 0.0 -42.9 <-100 Free cash flow 286.0 272
Slide 9: Balance sheet ratios and KPIs
Balance sheet ratios and KPIs in € mn 2019 2018 Chg. in % ROCE 1) 10.6% 7.5% - CFROI 9.9% 7.7% - Equity 2) 2,076.8 1,939.1 +7 Equity ratio 50.3% 51.8% -3 Net debt 871.4 631.6 +38 Net debt / EBITDA 1.4 1.4 - Gearing 42.0% 32.6% - Working capital / revenues 16.9% 16.6% - › Mid-term ROCE target >10% ha
Slide 10: Committed to maximizing shareholder value
Committed to maximizing shareholder value ROCE development 2010-2019 12% 10,6% 10% 8% 7,3% 7,5% 5,8% 6% 4,5% 4% 2,7% 2% 0,9% 1,3% 0,0% 0,4% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 10
Slide 11: Significant dividend growth
Significant dividend growth Dividend development 2010-2019 0,60 › In 2019, we delivered the best 0,50 result ever in the 200-year history of our company 0,27 0,30 0,10 0,12 0,12 0,12 0,15 0,20 › We want our shareholders to in € participate in this success › Payout in October 2020 due to biggest COVI
Slide 12: Strong contribution to our shareholders
Strong contribution to our shareholders Dividend Dividend payment for 2019: € 69 mn Share buyback 1.2 mn shares bought back for € 26 mn 33% of free cash flow returned to our shareholders for 2019 12
Slide 13: Wienerberger fundamentally reshaped its focus
Wienerberger fundamentally reshaped its focus Today Wienerberger is a lot more resilient Strong track record of consistently improving due to a much broader market exposure performance confirms success of our growth strategy Portfolio has been reshaped 5% Customer proximity 25% 10% Innovation le
Slide 14: 2010-2019: a strong decade that proves a significant turnaround of our business
2010-2019: a strong decade that proves a significant turnaround of our business +108% revenue growth +208% EBITDA growth 3,466 610 1,664 198 2010 2019 2010 2019 +472% net income growth EBITDA margin at 12-year high: 17.6% 17.6% 249 11.9% -67 2010 2019 2010 2019 14
Slide 15: Agenda
Agenda Overview FY 2019 Wienerberger Strategy Covid-19 Update & Outlook 2020 15
Slide 16: Wienerberger Building Solutions
WIENERBERGER BUILDING SOLUTIONS System solutions for the entire building envelope 62% of Group sales › Varied portfolio of innovative products & system solutions used for roofs, facades, walls, patios, public spaces & gardens › 12,466 employees work in 155 plants in 28 countries › Business exposure
Slide 17: Wienerberger Piping Solutions
WIENERBERGER PIPING SOLUTIONS Piping solutions for buildings and infrastructure 28% of Group sales › Broad range of plastic and ceramic pipes used for system solutions for in-house installations, infrastructure applications and water management in agriculture › 3,318 employees work in 32 sites in 17
Slide 18: North America
NORTH AMERICA Facade solutions and piping systems 10% of Group sales › Broad portfolio of premium facade solutions and plastic piping systems for infrastructure applications › 1,450 employees work in 14 plants › #1 market position in our relevant core markets › Business exposure mainly to new build
Slide 19: Clear vision for the different Business Units
Clear vision for the different Business Units Building Solutions Piping Solutions North America › Use natural product › Three clear focus areas › Enhance market penetration in characteristics in combination strategic growth areas with sustainability measures to › Inhouse segment drive healthy living
Slide 20: How we invest in our Business Units for future growth
How we invest in our Business Units for future growth 1 Maintenance capex 2 Special capex 3 M&A › Recurring maintenance Driving organic growth through › Value creating M&A transactions investments investments in › Health & Safety › Innovation & digitalization › Sustainability › Fast Forward projects
Slide 21: Maintenance Capex: Health & Safety
Maintenance Capex Health & Safety Accident frequency rate has declined since 2009 by about 78% › Continuous efforts show a strong track record 26 20 16 › Through strong health & safety 12 12 culture Covid-19 measures were 10 8 7 5 5 6 swiftly implemented 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 22: Organic growth through innovation, digitalization and optimization
Special Capex Organic growth through innovation, digitalization and optimization 22
Slide 23: Innovation for the roof - new roof tile with Porsche Design
Innovation for the roof - we shape the future of construction › New roof tile in cooperation with Porsche Design › Perfectly integrates into the building envelope › Functional, aesthetic and innovative › Winner of the German design award and Red Dot award 23
Slide 24: Digital planning tool All4Roof
Digital planning tool All4Roof - we shape the future of construction › Measurement of roof based on geo data › Selection of roof tiles including all necessary accessories and fittings › Fast, digital offer for full roof solutions to end customers 24
Slide 25: Pre-wired electrical installations
Pre-wired electrical installations - we provide innovation for inhouse solutions › Pre-wired electro cables from Preflex › Easy to install on site, saves resources and material › Can be prefabricated based on a digital house plan 25
Slide 26: Infrastructure projects to maintain biodiversity
Infrastructure projects to maintain biodiversity › Migration friendly road culvert in Finland to protect endangered migrating fish population › Concrete culverts were replaced with innovative Pipelife solutions › New culvert imitates the natural flow of the river 26
Slide 27: Stormwater management
Stormwater management - we provide solutions to tackle climate change › Smart Raineo system to store water from heavy rains and floodings › Filter and clean rainwater › Reuse the scarce resource water for watering plants and giving it back to the soil 27
Slide 28: Sensors for pipe networks
Sensors for pipe networks - we provide innovation for infrastructure › Innovative plug and play solution to place sensors into existing pipe networks › Solution will increase the density and accuracy in monitoring water quality in supply networks › First pilot projects running in the Netherlands 28
Slide 29: Efficient use of water in agriculture
Efficient use of water - we provide innovative solutions for agriculture › Providing irrigation and drainage solutions to tackle increasing challenges of droughts and floodings › Supporting the efficient use of the scarce resource water 29
Slide 30: We continue to add value via M&A
We continue to add value enhancing products via M&A › Drive future growth and develop our business › Grow the share in the value chain › Add innovative solutions to the portfolio › Explore new business opportunities 30
Slide 31: Growth projects & portfolio optimization
M&A Growth projects & portfolio optimization Building on strong M&A track record in 2017-2019 avg. EV/EBITDA multiple pre-synergies: 6.8x avg. EV/EBITDA multiple post-synergies: 5.2x Ongoing evaluation of a very attractive pipeline of value creating M&A opportunities Continue optimization of underpe
Slide 32: Operational Excellence – continuous improvements with Fast Forward
Operational Excellence – continuous improvements with Fast Forward Projekt Wienerberger AG 32
Slide 33: Fast Forward: comprehensive optimization measures across the Group
Fast Forward Comprehensive optimization measures across the Group Manufacturing Excellence Commercial Excellence Procurement Hundreds of initiatives carried out across six workstreams All 30 countries in 3 Business units are involved Steered & executed by >300 local initiative Supply Chain Managemen
Slide 34: 2018: First optimization already delivered
2018: First optimization already delivered in first year of implementation Target € 120 mn EBITDA Improvement* On track Already Achieved € 20 mn 2018 * vs. 2017 baseline, EBITDA improvements accumulated as projects successively become P&L effective, Improvements combine gross margin expansion, proce
Slide 35: 2019: We progressed towards our targets
2019: We progressed towards our targets, even faster than originally planned Target € 120 mn EBITDA Improvement* On € 50 mn 2020 track € 50 mn 2019 Already Achieved € 20 mn 2018 * vs. 2017 baseline, EBITDA improvements accumulated as projects successively become P&L effective, Improvements combine g
Slide 36: Great contribution from all Streams, Countries and Business Units
Great contribution from all Streams, Countries and Business Units Manufacturing Excellence › Optimization of production processes via lean manufacturing, automation, reduction of energy consumption › Strong product mix improvement, increasing the share of Commercial Excellence the value chain › Grou
Slide 37: 2020: We started with clear ambition to deliver on our promises
2020: We started with clear ambition to deliver on our promises › 2020 as the final year of our 3-year performance enhancement program › Realized and ongoing initiative pipeline supporting the envisaged step up to reach the program’s € 120 mn. EBITDA uplift › Despite sound performance in the first t
Slide 38: Severe impact of Corona on our Fast Forward ambition 2020
Severe impact of Corona on our Fast Forward ambition 2020 › The assumption of a stable market environment does not apply anymore › Since March several projects had to be put on hold and are delayed due to travel bans › Investments have to be reviewed in order to manage the Group’s cash flow › Govern
Slide 39: Fast Forward outlook 2020/2021
Fast Forward outlook 2020/2021 › The Fast Forward program is ongoing and will deliver results in 2020 › However, our full program results delivery for 2020 will be impacted by the Corona crisis › Roll-over of initiatives to 2021 and beyond assuming return of stability › New efficiency measures will
Slide 40: Clear commitment to ESG with measurable targets
Wienerberger’s overall strategy Clear commitment to ESG with measurable targets Decarbonization Encourage Preserve of our product circular economy biodiversity portfolio Wienerberger will make sure Wienerberger commits to Wienerberger commits to and that all of its products during resource efficienc
Slide 41: Decarbonization of the product portfolio
Decarbonization of the product portfolio Measures for the relevant product groups € 3.5 bn Group Revenues in 2019 ~ € 2.5 bn revenues ~ € 1 bn revenues in ceramic production in pipe production Clear measures will be taken to reduce carbon footprint: Hardly any exposure to CO2 Investments in new
Slide 42: Investments in new production technologies to decarbonize
Investments in new production technologies to decarbonize our production process Example: DRYFiciency in Austria › Investments in new production technologies to decarbonize our brick plants › Installation of a high temperature heat-pump in our model plant › Increase of energy efficiency up to 80% an
Slide 43: Product innovations to decarbonize our portfolio
Product innovations to decarbonize our portfolio Example: First climate neutral brick › Combining naturally properties like durability, robustness and recyclability with › reduced energy demand › renewable energies › additional climate protection measures 43
Slide 44: Our commitment to encourage circular economy
Our commitment to encourage circular economy Example: Specific successes Piping Solutions › Target to increase the share of secondary raw material to a total of 85 kg per ton of plastic pipes produced achieved one year earlier than planned › 2020 target: 90 kg per ton of plastic pipes 44
Slide 45: Our responsibility to preserve biodiversity
Our responsibility to preserve biodiversity Example: Project in Belgium › Brick production in harmony with nature › Natural earth wall fosters biodiversity › 12 ha covers the entire area with the neighboring re-naturalized clay pit 45
Slide 46: Agenda
Agenda Overview FY 2019 Wienerberger Strategy Covid-19 Update & Outlook 2020 46
Slide 47: Strong start to the year 2020 driven by innovation and digitalization
Strong start to the year 2020 driven by innovation and digitalization › Strong start to the year 2020 Q1 2020 Q1 2019 Revenues € 792 mn | € 777 mn EBITDA € 106 mn | € 110 mn › Pricing strategy to cover cost inflation holding up as planned › March affected by Covid-19 outbreak, volume declines and pl
Slide 48: Status quo on Wienerberger European markets
Status quo on Wienerberger European markets › High health and safety instructions for all employees › Home-office were applicable › Western Europe and Nordics – only few plants still in shut down where required by local governments › Eastern Europe – less affected with most countries still operating
Slide 49: Status quo on Wienerberger North American markets
Status quo on Wienerberger North American markets › High health and safety instructions for all employees › Home-office were applicable › US operations only affected to a limited extend › Canada preparing for restart › Close collaboration along the local supply chains and customer contact highly dig
Slide 50: Group measures to focus on cash preservation
We acted swiftly and implemented Group measures to focus on cash preservation › Maintenance and Special capex are reduced to minimum CAPEX AND M&A › All M&A projects currently put on hold › State support measures are used groupwide where applicable PERSONAL COSTS › -20% temporary wage cuts on Execut
Slide 51: Wienerberger continuously works on future growth
Wienerberger continuously works on future growth System solutions Sustainability Fast Forward Strong liquidity & Digitalization Enhancing our Driving sustainability Continuous Well prepared for Innovative solutions focus areas with clear optimization efforts different scenarios with offering and dri