Wienerberger Ag · VIE:WIE
Wienerberger — ESG Presentation (January 2021)
39 slides from Wienerberger's sustainability presentation, Jan 25, 2021
Slide 1: ESG Roadshow
ESG Roadshow 20-25 January 2021
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: Group Strategy: Growth through self help, organic growth and M&A
Group Strategy Growth through self help, organic growth and M&A Organic growth through Innovation & Digitalization Self help GROUP STRATEGY Inorganic growth through through M&A Operational and Portfolio Excellence Become full system Increase our Optimization solutions provider in VALUE CREATION ENER
Slide 4: Handling the Covid-19 pandemic as a Group
Handling the Covid-19 pandemic as a Group Employees Financial implication Communication › Physical measures › Strong focus on cash flow › Keeping all stakeholders up to date › Strict H&S measures implemented throughout › Cost savings across all activities › Transparent and timely communication to al
Slide 5: Health & Safety: Top priority across the organization
Health & Safety: Top priority across the organization We have a clear goal – zero accidents! Strong track record in AFR improvement › Health & Safety (H&S) is a leading indicator of our operational AFR1) development since 2009 performance › Involvement of the top management and regular updates and 2
Slide 6: Commitment to ESG recognized with strong performance in all key ratings
Wienerberger‘s commitment to ESG is recognized with strong performance in all key ratings Continuous improvements of our ratings in 2020 › EcoVadis Silver: Awarded with silver medal due to improvements in all evaluation areas (Nov 2020) E (Environment) › Confirmation of our AAA rating by MSCI for th
Slide 7: Sustainability
Sustainability wienerberger
Slide 8: Wienerberger accomplished its Sustainability Roadmap 2020
Sustainability Roadmap 2020 Wienerberger accomplished its Sustainability Roadmap 2020 AREA TARGET ACHIEVEMENT EMPLOYEES Zero accidents Achieve more than 25% ~ Continuous track record of AFR1) improvement: 2019 -6% vs. 2018 PRODUCTS of Group revenues from innovative products > 30% in 2019 Reduce en
Slide 9: Process for strategy development
Sustainability Strategy 2023 Process for strategy development Performed steps Derivation of targets and KPIs for material topics based on the Close collaboration Conduction of materiality analysis and industry Communication with the Sustainability Sign-off by the materiality analysis benchmarking: a
Slide 10: Sustainability Governance
Sustainability Governance Clear governance for strategy oversight and execution in place Supervisory Board › Regular updates and discussions regarding ESG Managing Board between the Managing for ESG topics/risk CEO, CFO, COOs WBS and WPS Sustainability & Board and the Supervisory Committees (Sustain
Slide 11: We continue our sustainability commitment and consider the bigger picture
Sustainability Strategy 2023 We continue our sustainability commitment and consider the bigger picture when managing our business 2023 2050 PROGRAM We are committed Wienerberger’s to NET ZERO GHG near-term target emissions in line with the EU Green Deal We are acting responsibly, improving people’s
Slide 12: Our 2023 sustainability targets are fully in line with the EU Green Deal
Sustainability Strategy 2023 Our 2023 sustainability targets are fully in line with the EU Green Deal ENVIRONMENT SOCIAL GOVERNANCE Committed to highest Climate Protection Diversity national and >15% Female employees in international -15% CO2e1) emissions vs. 2020 senior management governance standa
Slide 13: Corporate Governance
oe Corporate Governance wienerberger
Slide 14: Overview
Overview Investor Feedback and Wienerberger's Reaction Supervisory Board: Composition and Topics of Focus Managing Board: Strengthened Management Team and Remuneration Update 14
Slide 15: Strong commitment to international governance standards and shareholder engagement
Corporate Governance Strong commitment to international governance standards and continuous shareholder engagement Areas for Action – Feedback from Shareholder Engagements What We Heard What We Are Doing An independent performance review of the new Board composition and its The new Board structure m
Slide 16: Overview
Overview Investor Feedback and Wienerberger's Reaction Supervisory Board: Composition and Topics of Focus Managing Board: Strengthened Management Team and Remuneration Update 16
Slide 17: Supervisory Board structure as of January 2021
Supervisory Board The structure increases commitment to intl. Governance Standards and development of strategy Structure as of January 2021 Management Supervisory As of January 1, 2021 - Board successful appointment of a new, independent, Supervisory Board Chair Peter Steiner (C) Myriam Meyer (VC) R
Slide 18: The new Chairman will focus on his strategic role
Supervisory Board The new Chairman will focus on his strategic role to... …further develop a good succession management and senior HR development …act as an active sparring partner to the CEO and the executive management team by: › supporting them for the implementation of strategic and performance
Slide 19: Structured Supervisory Board nomination process
Supervisory Board Structured Supervisory Board nomination process to strengthen the Board PROFILE LONG LIST SHORT LIST EVALUATION NOMINATION DECISION DEFINITION DEFINITION DEFINITION PROCESS › Development of a › Search in › Candidates are › Assessment of › Shortlisted › Final decision profile based
Slide 20: Skills matrix as basis for future Board candidates
Supervisory Board Skills matrix as basis for future Board candidates Skills matrix as of January 2021 Focus skills for future potential profile(s) › Structured succession planning process not only for the upcoming AGM, but also with regard to future strategic needs › New Supervisory Board members sh
Slide 21: Overview
Overview Investor Feedback and Wienerberger's Reaction Supervisory Board: Composition and Topics of Focus Managing Board: Strengthened Management Team and Remuneration Update 21
Slide 22: Strengthened Managing Board to drive future growth
Strengthened Managing Board to drive future growth Heimo Scheuch Carlo Crosetto Solveig Menard-Galli Harald Schwarzmayr as CEO is responsible for the as CFO took over the as COO for Wienerberger as COO for Wienerberger strategic and operational responsibilities of the Chief Building Solutions Piping
Slide 23: Mode of operation of the Managing Board
Mode of operation of the Managing Board Managing Board as of June 2020 Principals of operation › As of June 2020 the Managing Board of Wienerberger Group consists of four members, which allows: › Increased synergies between the Business Units › 25% share of women with Solveig Menard-Galli as COO for
Slide 24: Remuneration: Fixed Remuneration
Remuneration: Recap of 2020-2024 Policy Fixed Remuneration › 2020 and 2021 fixed salaries are in line with the Remuneration Policy 2020-2024 › Fixed remuneration is divided into fourteen instalments (common practice in Austria) and paid at the end of each month Managing Board member Base salary FY 2
Slide 25: Supervisory Board's use of discretionary power during Covid-19
Adjustment of STI 2020 for the whole Group during pandemic Covid-19 showcased a practical example of the Supervisory Board’s usage of discretionary power Remuneration Policy – STI 2020 (pre Covid-19) Remuneration Committee Adjustments (post Covid-19) › Short-term variable remuneration for all member
Slide 26: Short-term incentive 2021-2024 focuses on operational performance
Remuneration Policy 2020-2024 – no change for STI going forward Short-term incentive 2021-2024 focuses on operational performance and efficiency enhancement Parameter Short-term incentive 2021-2024 Link to strategy Plan type › Annual Bonus Performance period › 1 year Allocation based on: › EBITDA LF
Slide 27: Long-term incentive focuses on long-term profitability and shareholder value
Remuneration Policy 2020-2024 – no change for LTI Long-term incentive focuses on long-term profitability and shareholder value creation Parameter Long-term incentive 2021-2024 Link to strategy Plan type › Performance Share Units Performance period › 3 years + 2 years lock-up period › TSR creates an
Slide 28: LTI payout/entitlement curve per KPI
Remuneration Policy 2020-2024 – update on LTI framework 2021 LTI payout/entitlement curve per KPI after 3 years performance period 11,1% CO2e reductions 11,1% Diversity 11,1% Training & development 150/175 150/175 150/175 100 100 100 Payout in % 50 50 0 0 0 0 5% 15% 30% -5/10% Target +7.5/15% 0 10%
Slide 29: LTI for the CEO to deliver 2023 targets
CEO Remuneration Update LTI for the CEO to deliver 2023 targets Strategic rationale Key parameters of award › The Remuneration Policy approved by shareholders works Parameter Details well Grant amount › EUR 2.5 mn › A "Sustainable Growth Award” (a long-term equity award), Plan type › RSU* (40% with
Slide 30: Special LTI entitlement curve per KPI
Special LTI for CEO Special LTI entitlement curve per KPI after 3 years performance period 70% EBITDA enhancement 10% CO2e reductions 10% Diversity 10% Training & Development 250 250 250 250 Payout in % 100 100 100 100 0 0 0 0 -25% 100% target +37.5% 5% 15% 30% -5/10% Target +7.5/15% 0 10% 25% point
Slide 31: Executive Summary
Executive Summary Wienerberger professionally managed 1 the Covid-19 crisis and came out stronger than before 2 Strong track record of strategy execution with clear targets for 2023 New, independent Board established 3 and Managing Board further strengthened Update to remuneration policy in line 4 w
Slide 32: wienerberger
wienerberger
Slide 33: Appendix
Appendix
Slide 34: Commitment to International Governance Standards
Corporate governance Commitment to International Governance Standards › As a 100% free float company our commitment to Shareholder Structure1) highest governance standards comes natural to us FMR 2) Impax Asset Management 2) 4,9% 4.2% BNP Paribas Asset Management No preferred shares 4.0% No rest
Slide 35: Skills matrix – experienced and diverse team of experts
Supervisory Board Skills matrix – experienced and diverse team of experts Peter Myriam Peter Regina David Christian Oswald Steiner (C) Meyer (VC) Johnson Prehofer Davies Jourquin Schmid Building materials & construction CEO Experience CFO Experience M&A Capital Markets/IR Senior HR Sales & Marketing
Slide 36: Experienced, diverse, independent
Supervisory Board Experienced, diverse, independent Supervisory Board overview including employee representatives Structure as of January 2021 Board Members Gender Diversity Independence1) Board members Board members 7 Shareholder Representatives Elected by the Annual General Meeting for a fixed ter
Slide 37: Increased Board workload
Supervisory Board Increased Board workload Committees # mandates held in publicly listed companies Supervisory Sustainability Attendance 2020 Audit & Risk Nomination Remuneration Board & Innovation 5 Shareholder representatives 1 1 Peter Johnson 1) 15/16 5/5 - 4/4 - 0 1 2 Peter Steiner 2) 16/16 5/5
Slide 38: Termination and Awards
Remuneration Policy 2020-2024 – no changes Termination and Awards › Post-mandate vesting (LTI-plan) Pro-rating for time example: “How it works ?” Awards at the time of a beneficiary’s termination (for good leavers1)): › All awards remain conditional upon the achievement of the initial With the curre
Slide 39: Priorities of Supervisory Board and Committees Overview
Supervisory Board Priorities of Supervisory Board and Committees Overview Audit and Risk Committee Nomination Committee › Monitors the Group’s system of accounting and › Ensures compliance of the Supervisory Board the effectiveness of its internal control, audit and structure with national and inter