Wienerberger Ag · VIE:WIE
Wienerberger — FY2021 Earnings Presentation
41 slides from Wienerberger's earnings presentation, 2022
Slide 1: Results FY 2021
wienerberger RESULTS FY 2021
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 Results 2021
Outlook and visionbe- yond2022 INTRO RESULTS 2021 3
Slide 4: In a challenging market environment, Wienerberger responded with swift measures
IN A CHALLENGING MARKET ENVIRONMENT, WIENERBERGER RESPONDED WITH SWIFT MEASURES… CHALLENGES 2021 WIENERBERGER ACTIONS › Geopolitical instability › Reinforced local business model › Supply bottlenecks in raw materials › Sustainable purchasing policy and certain machinery and accessories for raw mater
Slide 5: Strong organic growth and solid cash generation
…AND ACHIEVED STRONG ORGANIC GROWTH AND SOLID CASH GENERATION REVENUE › 18% above previous year at new record level GROWTH › Positive market sentiment led to very high demand across almost all product groups and countries CASH FLOW & › € 421 mn free cash flow generated due to strong PROFITABILITY op
Slide 6: FY 2021 Record Results
FY 2021 RECORD RESULTS Revenue EBITDA € 3,971.3 mn € 694.3 mn (2020: € 3,354.6 mn | +18%) (2020: € 558.0 mn | +24%) Free cash flow EBITDA margin € 420.6 mn 17.5% (2020: € 397.3 mn | +6%) (2020: 16.6% | +85bp) 6
Slide 7: Attractive pay-out for investors while maintaining strict financial discipline
ATTRACTIVE PAY-OUT FOR INVESTORS WHILE MAINTAINING STRICT FINANCIAL DISCIPLINE SUBSTANTIAL € 293 mn returned to investors SHAREHOLDER RETURN › € 67 mn dividend payout › € 225 mn through buyback of hybrid bond including coupon Proposed dividend 2021: increase of 25% to € 0.75 per share DISCIPLINED BA
Slide 8: ESG performance 2021 fully on track: Environment
WE COMMIT TO HIGHEST ESG STANDARDS ESG PERFORMANCE 2021 FULLY ON TRACK TO ACHIEVE AMBITIOUS 2023 TARGETS 1) “Carbon dioxide equivalents” or “CO2e” is a term used to describe the global warming potential (GWP) of various greenhouse gases in a single unit // Note: All goals are set vs. the reference y
Slide 9: ESG performance 2021 fully on track: Social
WE COMMIT TO HIGHEST ESG STANDARDS ESG PERFORMANCE 2021 FULLY ON TRACK TO ACHIEVE AMBITIOUS 2023 TARGETS * The reduction compared to the previous year is due to the strict Covid-related restrictions on physical meetings throughout 2021. This concerned most of the technical training events, which usu
Slide 10: Growth through M&A: FloPlast & Cork Plastics
GROWTH THROUGH M&A DONE IN 2021: FLOPLAST & CORK PLASTICS IMPORTANT DRIVER OF OUR FUTURE GROWTH AND CREATES VALUE BY COMBINING ACQUIRED BUSINESSES WITH OUR OWN SOLUTIONS › Very interesting growth opportunity in core regions UK & Ireland due to 90% exposure to renovation › Significant synergies to be
Slide 11: Growth through M&A: Meridian Brick
GROWTH THROUGH M&A DONE IN 2021: MERIDIAN BRICK IMPORTANT DRIVER OF OUR FUTURE GROWTH AND CREATES VALUE BY COMBINING ACQUIRED BUSINESSES WITH OUR OWN SOLUTIONS › Combined business as excellent growth platform › Enhance our product portfolio for our customers Canada › Market entry in Texas and Oklaho
Slide 12: Our organic growth significantly exceeded GDP growth
WIENERBERGER LONG-TERM GROWTH TREND OUR ORGANIC GROWTH SIGNIFICANTLY EXCEEDED GDP GROWTH TRACK RECORD OVER PAST 10 YEARS REVENUE GROWTH GDP GROWTH2) CAGR1) CAGR1) +6% +2% 3,971 2,356 in € mn 2012 2021 2012 2021 1) Compound annual growth rate between 2012-2021 2) GDP growth weighted by geographic exp
Slide 13: Balanced portfolio with diversified end market exposure
WIENERBERGER TODAY BALANCED PORTFOLIO WITH DIVERSIFIED END MARKET EXPOSURE AND ENHANCED RESILIENCE 2012 2021 15% Infrastructure 22% Infrastructure 49% 20% Renovation New Build 65% Residential New Build Residential 29% Renovation € 2.4 bn revenues € 4 bn revenues Significantly enhanced business resil
Slide 14: The world of wienerberger
The world of wienerberger offers solutions for innovative water and energy infrastructure, energy-efficient renovation and sustainable new construction. It provides room for creative visions and demands values such as respect, creativity, passion and trust. By implementing the highest standards of s
Slide 15: Financials 2021
FINANCIALS 2021 15
Slide 16: Outstanding Q4 results
Q4 2021 OUTSTANDING Q4 RESULTS 1) Adjusted for effects from consolidation, sale of core and non-core assets, FX and structural adjustments External revenues Q4 2021 Q4 2020 Chg. in % Continued high demand and strong operational (in € mn) performance in all business units Wienerberger Building Soluti
Slide 17: Building Solutions: strong growth across all segments
FY 2021 | WIENERBERGER BUILDING SOLUTIONS STRONG GROWTH ACROSS ALL SEGMENTS in € mn 2021 2020 Chg. in % External revenue 2,300.5 2,092.1 +10 EBITDA LFL 473.4 412.2 +15 EBITDA 477.6 415.2 +15 EBITDA LFL Margin 20.7% 20.1% - › Continued high demand across all product groups and markets, especially for
Slide 18: Piping Solutions: strong performance despite challenging raw material markets
FY 2021 | WIENERBERGER PIPING SOLUTIONS STRONG PERFORMANCE DESPITE CHALLENGING RAW MATERIAL MARKETS AND SUPPLY CHAIN ISSUES in € mn 2021 2020 Chg. in % External revenue 1,167.3 932.6 +25 EBITDA LFL 114.7 99.6 +15 EBITDA 127.5 97.1 +31 EBITDA LFL Margin 10.3% 10.7% - › Stabilization of demand for inf
Slide 19: North America: exceptional year in pipes
FY 2021 | NORTH AMERICA AN EXCEPTIONAL YEAR IN NORTH AMERICAN PIPES; ENCOURAGING PROGRESS IN FACADE SOLUTIONS in € mn 2021 2020 Chg. in % External revenue 498.6 325.0 +53 EBITDA LFL 82.7 46.9 +76 EBITDA 89.1 45.7 +95 EBITDA LFL Margin 19.6% 14.4% - › Exceptionally strong result in the plastic pipe b
Slide 20: Revenue development 2021
REVENUE DEVELOPMENT 2021 STRONG ORGANIC GROWTH OF +16%, TOTAL REVENUES UP +18% +16% organic 524 3,971 8 100 3,355 Revenues Scope1) Organic FX Revenues 2020 2021 +18% Note: Rounding differences may arise from automatic processing of data 1) Including M&A and divestments 20
Slide 21: Growth by Self Help
GROWTH BY SELF HELP STRICT COST DISCIPLINE AND CONTINUING SELF HELP INITIATIVES TO FURTHER IMPROVE OPERATING PERFORMANCE FINANCIAL TARGET 2023 EXPECTED PROGRAM CONTRIBUTION IN 2022 € 135 mn Manufacturing excellence Total EBITDA contribution ~35% Impact on cost of sales vs. baseline 2020 48 Innovatio
Slide 22: Well covered for upcoming years by energy buying forward policy
ENERGY BUYING FORWARD POLICY WIENERBERGER IS WELL COVERED FOR THE UPCOMING YEARS ALREADY SINCE THE BEGINNING OF THE YEAR 2021… … thanks to many years of experience in buying forward strategy and ability to proactively respond to market developments › Wienerberger policy is to buy gas / electricity G
Slide 23: Strong performance with double digit EBITDA growth
EBITDA 2021 STRONG PERFORMANCE WITH DOUBLE DIGIT EBITDA GROWTH EBITDA DEVELOPMENT Reported LFL EBITDA adjustments 1-12/2021 1-12/2020 +24% in € mn +20% 694 671 EBITDA reported 694.3 558.0 558 559 Sale of assets1) -14.2 -9.8 Structural adjustments2) 13.8 13.3 Operating EBITDA 693.9 561.4 FX 0.7 - Con
Slide 24: EBITDA development 2021
EBITDA DEVELOPMENT 2021 STRONG ORGANIC GROWTH OF +20%, TOTAL EBITDA UP +24% +20% organic 113 694 1 21 561 operating Scope1) Organic2) FX operating EBITDA 2020 EBITDA 2021 +24% Note: Rounding differences may arise from automatic processing of data 1) Including M&A and divestments 2) Including self he
Slide 25: Disciplined capital allocation management with attractive paybacks
CAPITAL ALLOCATION 2021 DISCIPLINED CAPITAL ALLOCATION MANAGEMENT WITH ATTRACTIVE PAYBACKS MAINTENANCE CAPEX ESG & GROWTH CAPEX M&A INVESTMENTS € 120 mn € 159 mn € 467 mn Ensuring highest H&S standards Continuous improvement of Expansion of our product portfolio and Keep plants up and running our ca
Slide 26: Net debt development and leverage ratio
NET DEBT DEVELOPMENT & LEVERAGE RATIO UNCHANGED LEVERAGE RATIO DESPITE SIGNIFICANT GROWTH INVESTMENTS THANKS TO STRONG FREE CASH FLOW GENERATION 1) Includes reclassification of hybrid bond Note: Rounding differences may arise from automatic processing of data NET DEBT BRIDGE LEVERAGE RATIO UNCHANGED
Slide 27: Income statement
INCOME STATEMENT EXCELLENT OPERATIONAL PERFORMANCE TRANSLATES INTO STRONG PROFIT GENERATION Note: Rounding differences may arise from automatic processing of data in € mn 1-12/2021 1-12/2020 Chg. in % Revenues 3,971.3 3,354.6 +18 EBITDA LFL 670.8 558.7 +20 EBITDA 694.3 558.0 +24 Operating EBIT 431.2
Slide 28: Cash flow statement
CASH FLOW STATEMENT EXCELLENT CASH CONVERSION DRIVEN BY STRONG OPERATIONAL PERFORMANCE 1) Including dividends paid to non-controlling interests // Note: Rounding differences may arise from automatic processing of data in € mn 1-12/2021 1-12/2020 Chg. in € mn Chg. in % Gross cash flow 566.0 440.6 125
Slide 29: Balance sheet
BALANCE SHEET OUR FOCUS ON LONG-TERM VALUE CREATION IS REFLECTED IN STRONG PERFORMANCE AND BALANCE SHEET RATIOS 1) Including non-controlling interest 2) Based on last 12 months Note: Rounding differences may arise from automatic processing of data in € mn 31.12.2021 31.12.2020 Chg. in % ROCE 12.2% 8
Slide 30: Financial highlights 2021
FINANCIAL HIGHLIGHTS 2021 THE SUCCESS STORY CONTINUED IN 2021 AND WE REACHED OUR AMBITIOUS GOALS ORGANIC GROWTH ROCE 12.2% Solid financial leverage Outperforming GDP in North America ROCE target of and Europe >10% achieved of 1.6x Net Debt/EBITDA, despite strong M&A spent of € 467 mn EBITDA LFL 2021
Slide 31: Guidance 2022
GUIDANCE 2022 31
Slide 32: Macro environment 2022
MACRO ENVIRONMENT 2022 WE ARE WELL POSITIONED TO MANEUVER A DEMANDING ENVIRONMENT GEOPOLITICAL COST OF RAW ENERGY COST INTEREST RATES INSTABILITY MATERIALS & SUPPLY SHORTAGES › No exposure to Ukraine Remain reliable partner › Forward buying energy › Despite any potential rise, and <1% to Russia for
Slide 33: Market expectations 2022
MARKET EXPECTATIONS 2022 OVERALL STABLE ENVIRONMENT IN OUR CORE REGIONS DESPITE SUPPLY CHAIN AND COST INFLATION CHALLENGES 1) Potential growth limited by availability of skilled labor Market growth (>2%) Stable development Market decline (<-2%) WESTERN CENTRAL & NORDICS NORTH AMERICA EUROPE EASTERN
Slide 34: Outlook 2022: Group EBITDA target EUR 750-770 mn
OUTLOOK 2022 WIENERBERGER GROUP EBITDA TARGET 2022: € 750-770 MN GUIDANCE ASSUMPTIONS › Continuation of strong demand patterns from 2021 › Stable macro economy, no political disruption or regulatory change COSTS & GROWTH › Ongoing high cost inflation in all markets › Active margin management in all
Slide 35: Cost inflation 2022
COST INFLATION 2022 INCREASING COST INFLATION EXPECTED TO CONTINUE AND TO REACH 5-7% FROM TODAY’S POINT OF VIEW PLASTICS RAW MATERIALS PERSONNEL ENERGY Prices and Rising transportation Lack of skilled labour Low gas storage and availability of cost and availability and sharp increase of low green po
Slide 36: Outlook 2022: capex, M&A contribution, one-time effect
OUTLOOK 2022 WIENERBERGER GROUP EBITDA TARGET 2022: € 750-770 MN CAPEX M&A CONTRIBUTION 2021 ONE TIME EFFECT NOT TO BE REPEATED IN 2022 › Maintenance Capex € 135 mn › Integration of acquisitions is › Substantial positive well on track one-time margin effects of › Discretionary Growth & ESG € 30 mn d
Slide 37: Guidance 2022 EBITDA bridge
OUTLOOK 2022 WIENERBERGER GROUP EBITDA TARGET 2022: € 750-770 MN GUIDANCE 2022 +12% to 15% 750 -770 -30 60 50-70 670 in € mn EBITDA LFL 2021 Organic M&A contribution One-off effect EBITDA 2022 from Piping business NOAM 2021 37
Slide 38: Wienerberger beyond 2022
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Slide 39: Strategic capital allocation: growth between 2022 and 2030
STRATEGIC CAPITAL ALLOCATION GROWTH BETWEEN 2022 & 2030 GROWTH & ESG M&A MAINTENANCE DIVIDENDS CAPEX › Maintain high revenue share of innovative products 30% › Strong M&A pipeline › Commitment to › Dividend policy to pay in-line with strategic continuously invest in out 20-40% of free cash › Targete
Slide 40: Further improving the resilience of our portfolio
WIENERBERGER 2030 FURTHER IMPROVING THE RESILIENCE OF OUR PORTFOLIO 2030 2021 25% 22% Infrastructure Infrastructure 49% 40% New Build New Build Residential Residential 29% Renovation 35% Renovation Strengthened market exposure to renovation 40
Slide 41: The world of wienerberger
The world of wienerberger offers solutions for innovative water and energy infrastructure, energy-efficient renovation and sustainable new construction. It provides room for creative visions and demands values such as respect, creativity, passion, and trust. By implementing the highest standards of