Wienerberger AG · VIE:WIE
Wienerberger — Q1 2010 Earnings Presentation
23 slides from Wienerberger's earnings presentation, May 4, 2010
Slide 1: Wienerberger Results Q1 2010
Wienerberger Results Q1 2010 Results Q1 | Financing and Capital Structure | Strategy | Outlook 2010 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
Slide 2: Key Figures Q1 2010
Results on the First Quarter of 2010 3 Key Figures Q1 2010 in € mn 1-3/2009 1-3/2010 Chg. in % Revenues 360.3 279.5 -22 Operating EBITDA 1) 16.2 -22.6 <-100 Operating EBITDA margin 4.5% -8.1% - Operating EBIT 1) -29.0 -69.5 <-100 Restructuring costs 42.6 0.0 <-100 Profit after tax 2) -61.0 -69.0 -13
Slide 3: Change in Revenues and EBITDA by Region Q1 2010
Change in Revenues Q1 2010 vs. Q1 2009 360 -22% +1% 280 -19% -4% Lower average prices due to: Price adjustments in CEE since spring 2009 Disproportionate share of (cheaper) commodities in facing bricks (UK and NL) Revenues Volume Price FX Revenues Q1 2009 Development Development Q1 2010 Note: in
Slide 4: Income Statement
Income Statement (1) in € mn 1-3/2009 1-3/2010 Chg. in % Revenues 360.3 279.5 -22 Operating EBITDA 1) 16.2 -22.6 <-100 Operating EBITDA margin 4.5% -8.1% - Depreciation -45.2 -46.9 +4 Operating EBIT 1) -29.0 -69.5 <-100 Operating EBIT margin -8.0% -24.9% - Restructuring costs -42.6 0.0 <-100 EBIT -7
Slide 5: Wienerberger Markets Q1 2010: Very Weak Markets Due to Bad Weather
Wienerberger Markets Q1 2010 9 Very Weak Markets in Q1 Due to Bad Weather Most severe winter in over 20 years in Europe and the USA: Central-East Europe: partly significant decline in demand Major Western European markets at low level, but - Stabilization of volumes since March (except NL) - Sig
Slide 6: Central-East Europe and North-West Europe Results Q1 2010
Central-East Europe Results for Q1 2010 Share of Group Central-East Europe (in € mn) 1-3/2009 1-3/2010 Chg. in % revenues 1-3/2010 Revenues 93.2 59.8 -36 21% Operating EBITDA 1) 9.4 -12.8 <-100 52% Operating EBITDA margin 10.1% -21.4% - Operating EBIT 1) -5.8 -28.9 <-100 1) Before restructuring cost
Slide 7: Central-West Europe and North America Results Q1 2010
Central-West Europe Results for Q1 2010 Share of Group Central-West Europe (in € mn) 1-3/2009 1-3/2010 Chg. in % revenues 1-3/2010 Revenues 66.4 55.9 -16 15% Operating EBITDA 1) -5.5 -5.9 -7 22 % 20% Operating EBITDA margin -8.2% -10.5% - Operating EBIT 1) -14.1 -13.8 <-100 1) Before restructuring c
Slide 8: Financing and Capital Structure: Strong Balance Sheet
Financing and Capital Structure 15 Strong Balance Sheet Chg. in % in € mn 2007 2008 31.3.2009 2009 31.3.2010 vs. 2009 Equity 1) 2,672.7 2,497.2 2,364.0 2,547.0 2,510.0 -1 Net debt 566.8 890.2 1.067,9 408.0 584.8 +43 Equity ratio 62% 57% 55% 62% 62% - Gearing 21% 36% 45% 16% 23% - 1) Including non-co
Slide 9: Weaker Earnings Impact Cash Flows; Seasonal Increase of Net Debt
Weaker Earnings Impact Cash Flows in € mn 1-3/2009 1-3/2010 Chg. in € mn Chg. in % Gross cash flow 7.2 -19.0 -26.2 <-100 Change in working capital 1) -92.5 -92.6 -0.1 0 Maintenance capex -11.9 -9.1 +2.8 +24 Divestments and other +3.9 +2.1 -1.8 -46 Free cash flow -93.3 -118.6 -25.3 -27 Growth investm
Slide 10: Development of Net Debt in Q1 2010 and Covenants
Development of Net Debt in Q1 2010 +105.2 584.8 +32.5 +20.1 0.0 +19.0 408.0 in € mn Net debt Gross cash Total Divestments Hybrid coupon Working capital Net debt 31/12/2009 flow investments & others 31/3/2010 19 Covenants Waiver / amendment of existing covenants from June 30, 2009 to December 31, 2
Slide 11: Term Structure and Issue of New Bond
Term Structure as of March 31, 2010 Term structure before bond issue Term structure after bond issue 600 600 500 500 140 400 400 400 in € mn in € mn 300 300 260 250 200 200 100 100 155.0 142.1 139.3 155.0 142.1 139.3 98.6 98.6 0 25.4 0 25.4 2010 2011 2012 2013 ≥ 2014 2010 2011 2012 2013 ≥ 2014 Inter
Slide 12: Wienerberger Strategy: Focus on Free Cash Flow Maximization
Wienerberger Strategy 23 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® Mothb
Slide 13: Strategy 2010 and Product Group Wall
Strategy 2010 Focus on operating business and products - Enforce sales and distribution: further strengthen customer relationships - Differentiate from competitors by premium and innovative products Further reduce working capital Grow with the markets | benefit from operational leverage of the
Slide 14: Strategy – Product Groups Facade and Roof
Strategy – Product Group Facade Improve profitability by - Efficient plant structure after restructuring - Better capacity utilization Benefit from possible market rebound in the USA Strengthen market positions / expand market shares - Continuous product development - Strengthen sales and dist
Slide 15: Outlook 2010 – Visibility Still Limited
Outlook 2010 29 Outlook 2010 – Visibility Still Limited North America / UK Continental Europe CEE Market Market Market UK: slight recovery Signs of stabilization Low visibility North America: bottoming out GER: slight improvement Further, partly significant in H1, slight recovery in H2
Slide 16: Major Concerns vs. Upside Potential; Dividend Recommendation
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 17: Improvement in Earnings Expected for 2010
Despite Low Visibility and Weak Q1: Improvement in Earnings Expected For 2010 Cost savings Capacity reserves + 10% wall (mothballed) Lower energy bill 20% facade incl. USA (mothballed) Lower interest result 30-40% from better utilization Increase in earnings 33 Wienerberger Investor Relations Wiener
Slide 18: Appendix: Wienerberger Group – Wienerberger at a Glance
Appendix: Wienerberger Group Wienerberger at a Glance | Market Positions | Product Groups | Competitive Advantage | Shareholder Structure 35 Wienerberger at a Glance International building materials group - 27 countries + 5 export markets - 227 plants in Europe, North America and India Founded 1
Slide 19: Wienerberger Brick and Roofing Markets in Europe
Wienerberger Brick Markets in Europe 1 1 1 Europe (total): No. 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 20: Brick Markets in North America; Results Q1 2010 by Region
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% 5 Canada: Market entry 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 21: Product Groups in Core Business; Explanation of Margins
Product Groups in Core Business Clay Blocks (Wall) Facing Bricks (Facade) No. 1 worldwide No. 1 in Europe, Co-Leader in USA Revenues: 34% EBITDA: 47% EBITDA margin: 17% Revenues: 30% EBITDA: 15% EBITDA margin: 6% Roof Tiles (Roof) Pavers (Surface) No. 1 in Europe 1) Leading positions in Europe Reven
Slide 22: Results FY 2009 by Product Group; Capacity Reserves
Results FY 2009 by Product Group Revenues: € 1,816.9 mn | -25% EBITDA 1): € 208.6 mn | -53% Surface Surface Investments and 11% Other -10% 11% Wall 34% Facade 15% Wall 47% Facade 30% Roof Roof 37% 25% 1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill,
Slide 23: Competitive Advantage in the Brick Industry; Shareholder Structure
Competitive Advantage of Wienerberger in the Brick Industry Cost Leadership in technology Leadership Economies of scale Fast adaptation of fixed cost base to market conditions Know-How Transfer of engineering know-how across operations Transfer Leverage innovation process and subsequent ro