Wienerberger Ag · VIE:WIE

Wienerberger — Investor Day (November 2021)

140 slides from Wienerberger's investor day presentation, November 2021

Slide 1: Wienerberger Capital Markets Day
Wienerberger Capital Markets Day November 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: Contents
Wienerberger Capital Markets Day 2021 Contents Introduction – About Wienerberger……………………………………………………......... 4 ESG at Wienerberger……………………………………………………………………………......... 6 We care & commit to People………………………………………………………………………. 15 We care & commit to Governance……………………………………………………………… 22 Current perf
Slide 4: Key Group facts
About Wienerberger 3 Key Group facts International player offering smart and sustainable system solutions 3 Business Units 3 Business Areas 3 Key Facts* 1 Clear Goal Wienerberger Building Solutions Building 216 plants** envelope and numerous partners Wienerberger Piping Solutions Water & Energy 17,3
Slide 7: Sustainability has always been at Wienerberger's core
Strong commitment to ESG Sustainability has always been at Wienerberger’s core We care and we commit. Reporting on our Long-term support of key Strong focus of top environmental, social and international initiatives management on ESG governance commitment UN Global Compact, Habitat Sustainability an
Slide 8: Defining measurable goals is key to tracking progress
Strong commitment to ESG We report on a series of ESG topics: Defining measurable goals is key to tracking progress Fixed KPI Defined Clear target Keeping track of Reaching definition baseline definition and sharing developments the goal we What do we Where do we What do we easily ensures uniform tr
Slide 9: Clearly defined KPIs for all areas of ESG
Strong commitment to ESG We have clearly defined KPIs for all areas of ESG Making ESG targets measurable Environment Social Governance Circular Decarbonization Biodiversity Employees Social Governance Economy CO2 emissions Waste generation Number of Percentage of Local Incidents of biodiversity wome
Slide 10: ESG targets defined, tracked and implemented at all management levels
Strong commitment to ESG All levels of management, monitored by the SB, are involved in defining, tracking and implementing ESG targets Managing Board (Sustainability Steering Committee) Supervisory Board CEO, CFO, COO WBS & COO WPS Committees incl. Sustainability & recognizes topics and issues of I
Slide 11: UN 2030 Agenda for Sustainable Development
UN Sustainable Development Goals Wienerberger also fully supports the UN 2030 Agenda for Sustainable Development Through our 2020 Materiality Analysis we gathered input from our internal and external stakeholders and identified the crucial topics for Wienerberger: 1 What is material for stakeholders
Slide 12: SDGs – More than just three letters
UN Sustainable Development Goals SDGs – More than just three letters for Wienerberger These 10 SDGs have been identified as especially relevant for Wienerberger1),… 1) Via impact- and risk analysis, monitored by external experts …however, the Wienerberger Sustainability Program 2023 contributes to a
Slide 13: Focus areas with material impacts, risks and opportunities
UN Sustainable Development Goals Focus areas with Material Impacts, Risks and Opportunities for Wienerberger Business Ethics Climate & Energy Circular Economy Biodiversity Employees Social Impact Energy efficiency Share of secondary Nature conservation at Health & Safety Compliance and anti- in prod
Slide 14: Our ambitious 2023 ESG targets
We care & we commit Our ambitious 2023 ESG targets ENVIRONMENT SOCIAL GOVERNANCE Committed to highest Climate Protection Diversity national and >15% international -15% CO2e1) emissions Female employees in vs. 2020 senior management governance standards and with focus on: Circular Economy >30% Female
Slide 16: People & stakeholder communication at the center
We care & we commit to people People & stakeholder communication are at the center - always and everywhere Employees We set our focus on people. A respectful and supportive corporate culture is key for our sustainable economic Customers success. Shareholders Thus, we embrace diversity and support ou
Slide 17: Health and Safety always on top of our mind
We care & we commit to people Health and Safety is always on top of our mind: Group-wide policy, awareness campaigns and trainings Health & Safety Challenge Safety App Competition where Health & Safety To identify potential hazards enabling officers have filmed short & entertaining employees to repo
Slide 18: 80% of employees took part in our survey
We care & we commit to people 80% of all employees took part in our survey: A testimony to their commitment A group-wide survey was carried out in 2021 to identify strengths and opportunities in terms of employee satisfaction: Comparability to 2017 & 2018 trends ensured Manufacturing Norm as benchma
Slide 19: Clear improvement against the Manufacturing norm
We care & we commit to people We recorded a clear improvement against the Manufacturing norm and have an action plan to outperform it 73 Enablement +2% 73 Engagement +3% 69 67 67 67 66 63 Engagement Enablement Results 2021 Results 2017/18 Manufact. Norm High Performance Norm Communicating the result
Slide 20: Code of Conduct published
We care & we commit to people Wienerberger’s Code of Conduct published Binding guideline setting clear and uniform rules for employees, business partners and suppliers Promotes common understanding of expected behavior and compliance with high standards of ethics committing to integrity in dealing w
Slide 21: People – Our key to long-term success
We care & we commit to people People – Our key to long-term success Respectful Ambitious goals Group-wide Health corporate culture to increase diversity, & Safety policy with internal & training hours and to secure well-being of external stakeholders CSR activities all our employees Employee survey
Slide 23: Key Improvements in 2021
We care & we commit to Governance Key Improvements in 2021 Appointed Peter Steiner as new independent Chair Added more ESG expertise with Kati ter Horst Sharing a common vision on sustainability Ongoing strong engagement with shareholders ©Wienerberger s.r.o. / Adobe Stock 23
Slide 24: Kati ter Horst strengthens the Board's skills
We care & we commit to Governance With her experience in ESG, Kati ter Horst strengthens the comprehensive and diverse range of skills on the Board Capital Representatives Leadership Peter Steiner (Chair) Constant exchange Myriam Meyer (Vice Chair)* • Nomination Committee and alignment • Sustainabil
Slide 25: Skills matrix for current Board members
We care & we commit to Governance Skills matrix for current Board members Peter Myriam Peter Regina David Kati Oswald Steiner (C) Meyer (VC) Johnson Prehofer Davies ter Horst Schmid Building materials & construction CEO Experience CFO Experience M&A Capital Markets/IR Senior HR Sales & Marketing Man
Slide 26: Core skills above sector peer benchmark
We care & we commit to Governance Core skills above sector peer benchmark Core skills Peers* Wienerberger › Our Board displays a healthy range of Executive Leadership 89% 100% skills and exceeds its sector peers in the presence of defined core skills. Audit, Accounting & Risk 32% 43% › Due to their
Slide 27: Ahead of peers in gender and international diversity
We care & we commit to Governance We are ahead of peers in terms of gender and international diversity Wienerberger Peers* International Experience (%) 60 57 32% 33 43% 30 57% 68% 0 Female Male Female Male Wienerberger Peers* With the appointment of Kati ter Horst, the level The international direct
Slide 28: Skills matrix as basis for future Board candidates
We care & we commit to Governance Skills matrix as basis for future Board candidates › The Supervisory Board has put in place structured succession planning aligned with Wienerberger’s long-term strategic needs › Potential candidates shall contribute to the Supervisory Board’s diversity and, given W
Slide 29: Supervisory Board commits to highest governance standards
We care & we commit to Governance Wienerberger’s Supervisory Board commits to highest international governance standards …Wienerberger’s Supervisory Board commits to and complies with highest international Corporate Governance Standards and further develops good succession management …Wienerberger h
Slide 31: Q3 2021 - Highlights
Q3 2021 - Highlights A successful year marked by growth Continuing our Meeting our Successful closing of strong growth path ambitious ESG targets M&A transactions External Revenues CO2 reductions Amount spent on M&A +14% (1-9 2021 vs. 1-9 2020) -6% (latest estimate FY 2021 vs. 2020) ~ € 500 mn (11/2
Slide 32: Financial Highlights
Financial Highlights YTD record results and strong cash flow generation Revenues EBITDA LFL1) € 2.90 bn € 509.1 mn (1-9 2020: € 2.55 bn | ∆: 14%) (1-9 2020: € 428.2 mn | ∆: 19%) EBITDA LFL Margin1) Free cash flow 17.7% € 236.4 mn (1-9 2020: 17.1% | ∆: +0.6 pts) (1-9 2020: € 138.2 mn | ∆: 71%) 1) Adj
Slide 33: Q1-Q3 2021 Business Unit Overview
Q1-Q3 2021 – Business Unit Overview Excellent performance and margin development across all business units Building Solutions Piping Solutions North America in € mn 1-9 2021 1-9 2020 Chg. in % in € mn 1-9 2021 1-9 2020 Chg. in % in € mn 1-9 2021 1-9 2020 Chg. in % External revenues 1,718.9 1,581.7 9
Slide 34: Self Help program delivered € 31 mn in YTD 2021
Focus Topic – Self Help Self Help program already delivered € 31 mn in YTD 2021 New Self Help program already delivered EBITDA contribution from Self Help € 31 mn EBITDA contribution in YTD 2021 in € mn Target for FY 2021: 9 EBITDA contribution of € 40 mn 40 31 Self Help program continues to be a ma
Slide 35: Right measures set to safeguard margins
Focus topic – Cost management Right measures set to safeguard margins Cost inflation and availability of raw material are impacting our business. But we are well-positioned and we took the right measures! Active centralized procurement and margin management enabled us to minimize negative impacts ›
Slide 36: Energy buying forward policy
Focus topic – 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 Gas volumes ensured as of September 3
Slide 37: Latest 2021 guidance supports our growth path
Financial Highlights YTD and Outlook 2021 Latest 2021 guidance supports our growth path Substantial Strong M&A Extraordinarily inflationary cost activity with strong organic increases offset by ~ € 500 mn YTD growth price increases spent in 2021 Special and ESG CAPEX increased Maintenance from € 140
Slide 38: Continuous robust market development expected
Outlook 2021 – Wienerberger Estimates Continuous robust market development expected Market growth (>2%) Stable development Market decline (<-2%) Western Central & Nordics North America Europe Eastern Europe New build Renovation Infrastructure 38
Slide 39: Operational Q4 performance expected slightly above pre-crisis level
Outlook 2021 – Wienerberger estimates Q4 Operational Q4 performance expected slightly above pre- crisis level Quarterly EBITDA LFL development vs. 2019 16.3% 11.3% › Strong organic growth even compared to 7.1% pre-crisis level showing a catch up effect 2.4% 1.7% during Q2 and Q3 2021 also reflected
Slide 40: Wienerberger Group further raises FY guidance
Outlook 2021 Wienerberger Group further raises FY guidance › Q3 performance fully in-line with expectations › Guidance 2021 for EBITDA LFL raised to € 650 mn PERFORMANCE › M&A EBITDA contribution of approx. € 15 mn expected in 2021 › No effect from energy price inflation due to active buying forward
Slide 41: The success story will continue in 2021
Wienerberger today The success story will continue 2021 and we are confident to reach our ambitious goals Ambitious growth target of outperforming the general market level will be achieved also in 2021 ROCE target of >10% to be achieved again this year Significantly improved financial leverage to 1.
Slide 43: We base our development on key megatrends
Megatrends We base our development on underlying key megatrends Lack of skilled labor Climate Change The construction industry faces skill shortages and the need for Unpredictable weather conditions lead to water scarcity while “on time in full” construction delivery increasing demand for energy con
Slide 44: Knowing our customers' needs is crucial
Megatrends – Shortage of skilled labor Knowing our customers’ needs is crucial to finding suitable solutions and offering targeted support Asset owners Architects & Engineers  for individual SFH construction,  for MFH, Non-residential mainly DIY or highly buildings, large-scale SFH fragmented mark
Slide 45: Tackling our customers' needs lies at the heart of our solutions
Megatrends – Shortage of skilled labor Tackling our customers’ needs lies at the heart of our solutions Asset owners Architects & General Installers Engineers contractors Safety    Certainty     Accuracy & Quality     Scalability    45
Slide 46: Rapid transformation towards automation and prefabrication
Megatrends – Shortage of skilled labor (Prefabrication) Rapid transformation towards automation, prefabrication and system solutions to compensate lack of skilled labor The challenge: Market growth limitations due to shortage of skilled labor. Automation Prefabrication Bricklaying robot Mobile Robot
Slide 47: Deep dive: Shortage of skilled labor as an opportunity
Megatrends – Shortage of skilled labor (Prefabrication) Deep dive: Shortage of skilled labor as an opportunity to grow and explore Prefabrication Robotics › Acquisition of Struxura – a › Partnership with KM Robotics Belgian producer of in Czech Republic, a prefabricated wall panels constantly growin
Slide 48: Deep dive: ClickBrick system
Megatrends – Shortage of skilled labor (Prefabrication) Deep dive: Facilitating installation on site and improving convenience - Introducing the ClickBrick system Our Solution › Dry stacking system for façade bricks, requiring no mortar or glue › Quick & easy way to change the look of a building in
Slide 49: Digital tools for our customers
Megatrends – Shortage of skilled labor (Digitalisation) Digital tools for our customers to increase convenience Distributors Installers Developers Designers/Planners Asset Owners Deep dive ONE DIGITAL BUILDING & INFRASTRUCTURE PLATFORM FOR FAST and SECURE ORDERING OPEN BIM ECOSYSTEM FOR DESIGN to en
Slide 50: Free courses at our training centers
Megatrends – Shortage of skilled labor (Trainings Digital & Onsite) Getting familiar with our products: Free courses at our training centers increase knowledge of workers State-of-the art training centers across the Group › Offering free extensive product training › Led by members of internal techni
Slide 51: Fighting climate change with the right solutions
Megatrends – Climate Change We fight against climate change together with our customers by providing the right solutions WHY ? To fight water scarcity, support usage of renewable energies and create an emission free living space © Markus Esser © Eric Poffers Water Management © Adobe Energy Managemen
Slide 52: Resource-saving water management systems
Megatrends – Climate Change (Water Management) Resource-saving water management systems are more important than ever Impact of Impact of Impact of climate change population growth rapid urbanization more unpredictable weather puts water management puts increased load on urban water conditions (e.g.
Slide 53: Deep dive: Stormwater solutions in the Nordics
Megatrends – Climate Change (Water Management) Deep dive: Stormwater solutions in the Nordics Stormwater Enhanced portfolio Digital solutions management Wienerberger enhanced its portfolio to Digitally enhanced solutions (e.g. Smart Stormwater management systems meet rising demand of large urban pro
Slide 54: Deep dive: Flood prediction through IoT sensor input
Megatrends – Climate Change (Water Management) Deep dive: On time, precise and locally targeted flood prediction through our IoT sensor input The problem › Historically, flood warnings have been unprecise, based on large regions and sent too late Our solution › We have developed a precise tool for p
Slide 55: Deep dive: Raineo smart water management
Megatrends – Climate change (Water management) Deep dive: Through Raineo we will develop into a smart water management system provider to prevent flooding… …in times of excessive rain and store the water Weather for long periods of drought station Raineo Road gully Stormwater box with manhole with m
Slide 56: Wienerberger accelerating the energy transition
Megatrends – Climate Change (Energy transportation) A low carbon economy will become part of our lives; Wienerberger is accelerating the energy transition Hydrogen transportation District heating & cooling systems Hydrogen is one of the most versatile energy carriers To enable a centralized producti
Slide 57: Undisrupted transportation for remote areas
Megatrends – Climate Change (Energy transportation) Deep dive: Undisrupted power transportation for offshore, remote and difficult to access areas Our offer WPS - Pipelife-Pre-Insulated-Pipes-South- Special pipes for water and waste-water Pole (c) Norwegian Polar Institute management in remote regio
Slide 58: Solutions to improve sustainable living
Megatrends – Climate Change (Sustainable homes) Our solutions are perfectly suited to improve sustainable living for generations HOW ? Providing the right solutions for new build and renovation › Best Practice – Sustainable building envelope › Energy generation › Water management WHY ? We care & com
Slide 59: Sense of responsibility driving sustainable living
Megatrends – Climate Change (Sustainable homes) A transformed sense of responsibility among all stakeholders is driving sustainable living Occupants Public opinion Governments Investors Shift towards new mindset which is less focused on growth and more focused on taking responsibility for creating a
Slide 60: Upcoming EU stimulus programs
Megatrends – Climate Change (Sustainable homes) Upcoming EU stimulus programs creating a positive drive for further investments Initiatives for net zero building stock & EU Renovation Wave Energy Perfor- Energy Efficiency Social Covid-19 Stimulus mance of Buildings Directive (EED) Climate Fund Packa
Slide 61: Stimulus programs drive the renovation wave
Megatrends – Climate Change (Sustainable homes) European and American stimulus programs drive the renovation wave towards sustainable construction 36% of total EU CO2 Reinforce long-term emissions caused by national renovation buildings programs 75% of European Transform Europe’s old building stock
Slide 62: Solutions to support net zero carbon buildings
Megatrends – Climate Change (Sustainable homes) Having the right solutions in our portfolio to support net zero carbon buildings In-house energy generation In-house water management PV integrated rooftiles Collection and storage of systems and solar panels rainwater to make it Geothermal heat pump a
Slide 63: Net zero carbon buildings via sustainable materials
Megatrends – Climate Change (Sustainable homes) Net zero carbon buildings via sustainable building materials and improved water and energy management Renewable Net zero carbon Energy buildings: A highly energy efficient building that produces Energy efficient on-site or procures envelopes with prefa
Slide 64: Deep dive: PV powered solar roof tiles
Megatrends – Climate Change (Sustainable homes) Deep dive: Energy efficient homes through PV powered solar panels Our solution › High quality roof tile with integrated solar cells › Launched in the Netherlands in 2021 › Easy and efficient to process (plug & play processing) The potential › High dema
Slide 65: Deep dive: Heat pumps
Megatrends – Climate Change (Sustainable homes) Deep dive: Energy efficient homes through heat conversion, perfect for renovation and new homes Our solution › Heat pumps transform energy from the outside air into heat › Compact and silent outdoor unit › Most efficient way of heating the home and dom
Slide 66: Sustainable building envelope to tackle extreme heat and cold
Megatrends – Climate Change (Sustainable homes) Best Practice example – Sustainable building envelope to tackle extreme heat and cold Clay as natural material with indoor-climate regulation properties (cooling) that last for over 100 years Perlite-filled monolithic solutions as climate-neutral optio
Slide 67: Comparing wall systems with the same attributes
Megatrends – Climate Change (Sustainable homes) Comparing wall systems with the same attributes 1 Considering all layers of the wall 2 Compare walls with same attributes and performances 3 Equal life span of 100 years 67
Slide 68: Full life cycle of a building (Cradle-to-Cradle)
Megatrends – Climate Change (Sustainable homes) We take the full life cycle of a building into account (Cradle-to-Cradle approach) 5. 1. Recycling Production 4. 2. End of Life Construction Full Cradle-to-Cradle approach from raw material extraction all the way to recycling with 3. Use Stage minimal
Slide 69: Embodied carbon footprint comparison
Megatrends – Climate Change (Sustainable homes) We compare systems based on life span having a low embodied carbon footprint Embodied Carbon footprint comparison for a single family house1) (in ton CO2 per house) Holz wird ergänzt 8 Concrete Calcium silicate Aerated concrete Monolithic Timber additi
Slide 70: Outperformance of timber by reducing carbon emissions
Megatrends – Climate Change (Sustainable homes) Outperformance of timber will be achieved by reducing overall carbon emissions by 80% Outperforming Timber with our monolithic wall solution Protective coating Protective Outperforming coating timber by 18% will make the (in kg CO2 per m2 wall) Wall mo
Slide 71: Clay the most environmentally friendly wall system
Megatrends – Climate Change (Sustainable homes) High thermal mass and great durability makes clay the most environmentally friendly wall system Clay blocks offer Solid wall construction with high thermal capacity > natural cooling in summer by the thermal mass qualities and high © Schlagmann Poroton
Slide 72: Supporting customers with the right solutions
Summary We support our customers with the right solutions Share Share of system of system solutions solutions in % of total revenues We have a significant number of answers to in % of total revenues the trends and developments thanks to our system solutions. Wienerberger is increasing its percentage
Slide 74: Transformation to a system solution provider
Wienerberger today Transformation to a system solution provider The old Wienerberger Wienerberger today Focus on providing enhanced Volume driven system solutions to increase and production convenience for customers focused manufacturer of commodity Reshaping the group and products diversifying the
Slide 75: Strong financial performance over the last 10 years
Wienerberger Group Strong financial performance over the last 10 years All initiatives have been resulting in growth and EBITDA Margin improvement of 400bps from 12.6% (2011) to 16.6% (2020) Revenue growth EBITDA growth GDP growth²) CAGR1) CAGR1) +6% +10% CAGR1) 3,355 558 +3% 1,915 in € mn in € mn 2
Slide 76: We have fundamentally reshaped the Group
Wienerberger Group We have fundamentally reshaped the Group 1 Focus on Innovation 2 Operational Excellence 3 Portfolio expansion & Digitalization & optimization EBITDA contribution of Outperforming the general € 110 mn (Fast Forward) 10 value creating market level in Europe as 2018-2020 and acquisit
Slide 77: Expanding the share of innovative products
Growth through focus on innovative products Wienerberger consistently expands the share of 1 innovative products Revenue and share of innovative products in € mn and % 3,466 3,305 3,355 3,120 2,972 2,974 2,834 2,663 2,356 1,915 › In absolute terms the increase is 150% from € 440 mn to € 1,100 mn 30%
Slide 78: Revenue share of innovative products
Growth through focus on innovative products Wienerberger consistently expands the revenue 1 share of innovative products Innovative products The share of innovative products amounts to 1/3 of total revenues Goal to remain above 1/3 of total revenues Innovation contributes to steady EBITDA margin inc
Slide 79: Fast Forward as key performance driver
Growth by Fast Forward Fast Forward has been a key performance driver & will continue 2 to further enhance in the current Self Help program Manufacturing Excellence › The continuous improvement of internal processes has always been part of our strategy, therefore the Commercial Excellence Fast Forwa
Slide 80: M&A and portfolio optimization track record
Growth by M&A and portfolio optimization Strong M&A and portfolio optimization track record as 3 driver for value generation Portfolio optimization program successfully M&A implemented › Generating growth opportunities thanks to › Margin improvement through portfolio value creating acquisitions opti
Slide 81: Significantly improved ROCE
Wienerberger today Significantly improved ROCE in previous 10 years reaching 4 target of >10% ROCE1) development, in % 10.7% ~11% Improving profitability 10.6% & value creation 7.1% ROCE1) target: >10% achieved Expected ROCE 2021: ~11% 0.9% 2) 2011 2019 H1 2020 H2 2020 2021 Continuous focus on perfo
Slide 82: Strong free cash flow growth
4 Wienerberger today Strong free cash flow growth Improving profitability & Free cash flow value creation 397 CAGR1) Sustainably improving profitability +13% in our existing businesses in € mn Highly disciplined management of 135 capex Unlocking value from portfolio optimizations 2011 2020 1) Compou
Slide 83: Clear capital allocation guidelines
Wienerberger today Clear capital allocation guidelines including return of 4 capital to shareholders Total Shareholder Return Dividends per share2) growth 415 0,60 270 CAGR1) In € per share +20% 100 *All values rebased to 100, December 31st 2011 0,12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 84: Sound balance sheet management
Wienerberger today Sound balance sheet management forms the base 5 for further growth Net debt / EBITDA 2.8 › Disciplined use of financial headroom as a basis for further investments 2.5x Maximum threshold Financial 1.9 headroom Expected threshold 1.6 › High cash-conversion rate supporting 1.4 Net d
Slide 85: Wienerberger's strong growth path
Wienerberger today Wienerberger’s strong growth path Strong free Strong organic Strong cash cash flow revenue growth conversion rate generation +6% +13% 57% to 82% (average 2011-2020) (average 2011-2020) (2011 vs. 2021) 85
Slide 86: Strong value creation through M&A and portfolio optimization
© Heikki Avent Strong value creation through M&A and portfolio optimization
Slide 87: M&A as strong strategic pillar for growth
Merger & Acquisition & Portfolio Optimization M&A as strong strategic pillar for growth All M&A activities are in line with our strategy and strict ESG criteria Investing in high Diversifying in Focusing growth areas our end markets on the right geographies to tackle megatrends and to become more to
Slide 88: Continuous and disciplined portfolio optimization
Value-creating portfolio optimization Continuous and disciplined portfolio optimization Divestments ZZ Wancor Other assets Switzerland Increasing profitability through portfolio › Swiss business did not meet our › Sale of non-operating assets and requirements for further growth businesses optimizati
Slide 89: All acquisitions support our growth
M&A growth All acquisitions support our growth Recent acquisitions result in average weighted EV/EBITDA multiple of ~5x post synergies after 3 years Optimization of Diver- Market footprint sification immersion Improved market Venturing into new areas of Improvement of existing position in existing b
Slide 90: M&A track record
M&A Track record Continuous expansion of our portfolio to diversify and optimize our footprint 2017 2018 2019 2020 2021* Optimization of footprint Diversification Smart Design Innovation Scalability Footprint optimization Best example for value generation through combining acquired businesses with o
Slide 91: Acquisition Meridian Brick
Acquisition Meridian Brick We create value through increasing our footprint – e.g. Acquisition Meridian Brick Wienerberger successfully closed the strategically compelling and financially highly attractive acquisition of Meridian Brick New leader for masonry solutions in key regions Drives further c
Slide 92: Combined business as platform for growth
Acquisition Meridian Brick Combined business as excellent platform for growth Outperforming Canada the market Wienerberger plants Leading position with Arris- Meridian plants Housing starts craft for the combined busi- Canada CAGR 10-20’ ness in the Ontario Market 9% p.a. 1,380 Region US West US Wes
Slide 93: Latest acquisitions address megatrends
Value-creating acquisitions Latest acquisitions address megatrends and customer needs Inter Act FloPlast & Cork Plastics Struxura Netherlands UK & Ireland Belgium › Web & cloud-based technologies › Rainwater, roofline, drainage, in- › Prefabricated wall panels › Monitoring, predicting, remotely hous
Slide 94: Combining acquired businesses with our own portfolio
Value-creating acquisitions We create value by combining acquired businesses with our own portfolio Two best practice examples Recent acquisitions + = Spider concept + e.g. Design, water retention, irrigation, roof systems = “From rain to drain” 94
Slide 95: Deep dive: The spider concept
Value-creating acquisitions Deep dive: The spider concept What is the spider concept? › Pre-cut and pre-assembled wiring for electrical installations “to tackle megatrends › Circuit layout converted from and to support our architect’s 3D plan (fully integrated customers’ needs” BIM) › Lay out ready
Slide 96: From rain to drain
Value-creating acquisitions “From rain to drain”: The combination of Wienerberger, FloPlast & Cork Plastics … Rainwater and roofline products as well as drainage and inhouse soil & waste water connected and extended with current Wienerberger portfolio and digital services to create high quality, cli
Slide 97: Cross-selling opportunities in the UK market
Value-creating acquisitions … offers cross-selling opportunities in the highly attractive UK market … Our combined business is managed by a well-experienced UK management team Growth in one of Combined sales of our core regions: UK > € 500 mn Outlet > 90% renovation Resilient business exposure model
Slide 98: In line with our strategy and supports value generation
…and is in line with our strategy and supports value generation Creating in-house rainwater “to tackle megatrends” management systems to use water in a non-wasteful way while saving costs in the long run “to support our customers’ needs” Strengthening our share in the non-cyclical renovation segment
Slide 99: M&A is an important driver of future growth
Where to invest? M&A is an important driver of our future growth WHERE ? Core markets in Europe and North America Enlarging footprint in our end markets to increase WHY ? system solutions (>25% of total revenues in 2023) Enhancing our presence in high margin businesses and HOW ? tackle megatrends an
Slide 100: We care & commit to the environment
We care & commit to the environment
Slide 101: Well on track to meet environmental targets
We care and commit to the environment We are well on track to meet our environmental targets Decarbonization Circular Economy Biodiversity Decrease in CO2 emissions Ongoing initiatives and R&D Specific Biodiversity Action (Scope 1 & 2*) across the entire projects put us on track Plans implemented at
Slide 102: We fully commit to EU targets
Decarbonization We fully commit to EU targets 2023 2030 2050 EU “Fit for 55” 2023 program European Green Deal UN 2030 Agenda Wienerberger’s Wienerberger’s Wienerberger’s near-term target mid-term target long-term target -15% reduction -40% net reduction Committed to of specific CO2 of specific CO2 c
Slide 103: Significant CO2 reductions in clay block segment
Decarbonization: 15% less CO2 emissions vs. 2020 Strong track record: significant CO2 reductions in clay block segment already achieved CO2 emission in % CO2 emission in % (to CO2 per ton of product) (to CO2 per m2 of wall) Major reduction of CO2 emission -35% intensity (Scope 1 / fuel) vs. 1990 -50
Slide 104: Delivery against 2023 targets on track
Decarbonization: 15% less CO2 emissions vs. 2020 Delivery against 2023 targets is well on track CO2 emissons in % reference year 2020 = 100% -15% 2023: Reduction of CO2 emission intensity (Scope 1 and 2) by 15% Promising decrease in CO2 emissions well on track across all Business Units CO2 reduction
Slide 105: Sustainable portfolio makes us a positive outlier
Decarbonization: 15% less CO2 emissions vs. 2020 Our sustainable portfolio makes us a positive outlier in the construction industry Tons of Scope 1+2 carbon emissions per € 1 mn of sales 6 000 5 000 Wienerberger already exhibits a 4 000 relatively low CO2 footprint compared to the heavy-side 3 000 b
Slide 106: Projects reducing CO2 emissions
Decarbonization: 15% less CO2 emissions vs. 2020 There is no standstill in decarbonization: projects that keep us well on track - 2,000 tons of CO2 emissions (Scope 1) at - 1,000 tons of CO2 Karlovac plant Reduction of CO2 emissions emissions (Scope 3) at Romanian Plants - 30% CO2 intensity (Scope 1
Slide 107: Dematerialization: Less and Eco-bricks
Decarbonization: 15% less CO2 emissions vs. 2020 Dematerialization - Less raw material, less CO2, same favorable properties: introducing the Less and Eco-bricks › Less clay & CO2 emitted during production reduces the footprint drastically by up to 30% › More living space or room for insulation › Nar
Slide 108: Reductions depend on public infrastructure
Going forward and beyond 2030 The extent of reductions in Scope 1 and 2 emissions depends on public infrastructure and availability By 2023 we want to switch to green electricity and by 2030 to green gas everywhere across our Group, however, certain conditions must be met. Availability Affordability
Slide 109: Biogas in Denmark
Going forward and beyond 2030 Available public infrastructure enables Egernsund Wienerberger in Denmark to use Biogas already › Switching to biogas is a quick way to reduce CO2 emissions as long as the infrastructure is readily available and works for our type of production › As an ecologically cons
Slide 110: Fully committed to CO2 neutrality by 2050
Going forward to 2050 Fully committed to CO2 neutrality by 2050 Short-term Mid-term Long-term 2050 CO2 neutrality ›1 Efficiency improvements ›2 Implementation of new technology Measures to ›3 Switch to green fuels reach climate Scope 1 / Scope 2 neutrality: ›4 Dematerialization 5 Alternative raw mat
Slide 111: Considering Scope 3 emissions
Going forward and beyond We are already considering our Scope 3 emissions Reporting on Scope 3 emissions to start in the next few years Already numerous projects to reduce Scope 3 emissions in place, such as: › Recyclability & reusability improvements › Supply chain management optimization › Packagi
Slide 112: Circular product design
Circular Economy: 100% of new products recyclable or reusable Longer life cycles, lower material consumption and circular product design R&D projects and innovation for recyclability & 1 reusability Continuous optimization of processes and 2 facilities Use of secondary raw materials in production 3
Slide 113: From Paver to paver
Circular Economy: 100% of new products recyclable or reusable From Paver to paver – the allrounder of surfaces The advantage of pavers › Long service life › Easy replacement Circularity of pavers › Resource efficiency: all internal production scrap is reused › Recyclability: Crushed pavers as subgra
Slide 114: EcoCorr plastic pipes
Circular Economy: 100% of new products recyclable or reusable EcoCorr - plastic pipes are the ideal recycling material The advantages of plastic pipes › Long service life & excellent properties e.g. light, tough, elastic, corrosion free, reduced leakages › Easy transport Circularity of plastic pipes
Slide 115: Biodiversity Action Plan
Biodiversity: 100% biodiversity program for all our sites in place by 2023 Biodiversity Action Plan to get everyone on board We converted quarries into places of rich flora and fauna for years showing that this commitment is in our DNA › We include all our occupied land, which makes us a pioneer in
Slide 116: Digital systems support biodiversity
Biodiversity: 100% biodiversity program for all our sites in place by 2023 Digital systems support us in identifying and realizing the biodiversity potentials at all sites Through our internal system (GIS) we will map current functions and biodiversity potential, monitor progress by trained ambassad
Slide 117: Ongoing biodiversity projects
Biodiversity: 100% biodiversity program for all our sites in place by 2023 We have already been busy implementing biodiversity projects Number of ongoing biodiversity projects More space for bees! Not only at our headquarter in Bird & bat boxes to provide Vienna but at multiple other solutions for o
Slide 118: Ahead of plan across environmental dimensions
We care and commit to the environment We are already ahead of plan and continuously take measures across all environmental dimensions Decarbonization Circular Economy Biodiversity Wienerberger has a low Ongoing initiatives and R&D Biodiversity Action Plans and footprint in comparison to the projects
Slide 120: We will continue our growth
Outlook We will continue our growth … Growth through focus on Growth through focus on innovative products system solutions Organic growth by ~1/3 of total revenues >25% of total revenues outperforming the market Organic growth Ø 6%1) Growth by Self Help Growth through M&A ~€ 250 mn EBITDA contributi
Slide 121: Generate shareholder value
Outlook … and generate shareholder value Dividend per share 20% annual average growth Total shareholder return 20-40% of Free cash flow Every € invested in 2011 is now worth >4x1) distributed to shareholders ROCE target above >10% 121 1) Including dividend payments reinvested in stocks, purchase tim
Slide 122: Driving innovation to increase customer convenience
Growth through focus on innovative products We drive innovation to increase customer convenience while addressing megatrends… 1/3 of our total revenues come from innovative products Revenue and share of innovative products in € mn and % 3,466 3,305 3,355 3,120 › 2,972 2,974 2,834 Goal to remain 2,66
Slide 123: Increasing system solution share in revenues
Transformation into a Full System Solution Provider …and significantly increase our system solution share in revenues Share of system solutions Develop innovative & smart solutions in % of total revenues Find solutions for megatrends – supporting climate change 10% 25% Enhance prefabrication Facilit
Slide 124: Strict cost discipline and Self Help initiatives
Growth by Self Help Strict cost discipline and continuing Self Help initiatives to further improve operating performance Financial target 2023 Expected program contribution € 135mn Manufacturing excellence Total EBITDA contribution ~40% Impact on cost of sales vs. baseline 2020 50 Innovation / Comme
Slide 125: M&A is an important driver of future growth
Growth through M&A M&A is an important driver of our future growth WHERE ? Core markets in Europe and North America Enlarging footprint in our end markets to increase WHY ? system solutions (>25% of total revenues in 2023) Enhancing our presence in high margin businesses and HOW ? tackle megatrends
Slide 126: Drivers to enhance free cash flow generation
Free cash flow generation Clear drivers to enhance further Free cash flow generation Improving profitability & Free cash flow in € mn value creation 397 CAGR1) Sustainably improving profitability +13% in our existing businesses Highly disciplined management of 135 capex Strong value creation through
Slide 127: Focus on performance enhancement
Value creation We continue our focus on performance enhancement ROCE1) development, in % ~11% 10.6% 10.7% ROCE1) target above >10% 7.1% 0.9% 2) 2011 2019 H1 2020 H2 2020 2021 Continuous focus on performance enhancement leading to significantly improved value creation 1) ROCE = NOPAT / average capita
Slide 128: Strong commitment to distributing capital
Capital allocation Strong commitment to distributing capital Total Shareholder Return Dividends per share2) growth 415 0,60 270 CAGR1) In € per share +20% 100 *All values rebased to 100, December 31st 2011 0,12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Wienerberger STOXX Europe 600 2011 2020
Slide 129: Sound balance sheet management
Balance sheet management Sound balance sheet management forms the base for further growth Net debt / EBITDA › Disciplined use of financial headroom 2.8 as a basis for further investments 2.5x Maximum threshold Financial 1.9 headroom Expected threshold 1.6 › High cash-conversion rate supporting 1.4 N
Slide 131: Focus areas 2022 driving our guidance
Our resilient business model Focus areas 2022 driving our guidance Integration of Further growth Inflationary acquisitions: driven by Self cost increases US & Canada Help initiatives offset by price (Meridian), UK and innovation increases (FloPlast), Ireland power (Cork Plastics) 131
Slide 132: Market expectations 2022
Market expectations 2022 Overall stable environment in our core regions despite supply chain and cost inflation challenges Market growth (>2%) Western Central & Stable development Nordics North America Market decline (<-2%) Europe Eastern Europe New build Renovation1) Infrastructure 132 1) Potential
Slide 133: EBITDA Target 2022: € 740-760 mn
Outlook 2022 Wienerberger Group EBITDA Target 2022: € 740-760 mn › No economic downturn, political disruption or any other changes in ASSUMPTIONS regulations › Uncertainty in markets remain › Potential risk of further cost inflation in all markets › Active margin management in all business units wit
Slide 134: EBITDA Target 2022: € 740-760 mn
Outlook 2022 Wienerberger Group EBITDA Target 2022: € 740-760 mn › Maintenance Capex slightly increased to € 135 mn due to enlarged CAPEX industrial base › Integration of acquisitions is well on track - total EBITDA contribution for Meridian, FloPlast and Cork plastics of € 50 mn is expected for M&A
Slide 135: EBITDA Target 2022: € 740-760 mn
Outlook 2022 Wienerberger Group EBITDA Target 2022: € 740-760 mn Guidance 2022 +14-17% 740-760 20 50 60 in € mn 650 EBITDA LFL 2021e1) Growth M&A contribution One-off effect from EBITDA 2022 Piping business NOAM 2021 135 1) Based on preliminary 2021 figures
Slide 137: Our goal is to outperform the markets
Outlook beyond 2022 Our goal is to outperform the markets… Market Growth 2021-2023 Average organic growth rate over the last decade + 6%1) annually CAGR in % We will continue to outperform our markets by strong innovations (1/3 of total revenues) and enhancing system solutions (to >25% of total Mark
Slide 138: Becoming a fully integrated system solution provider
Executive Summary Clear goal of becoming a fully integrated system solution provider … Climate change Lack of skilled labor Customer needs ESG Decarbon- Circular Biodi- Ethic & Go- People ization Economy versity vernance Sustainable Wienerberger’s construction, infrastructure sustainable & renovatio
Slide 139: Contributing to a net zero future
Executive Summary … while contributing to a net zero future Our ESG targets are followed consequently along the value chain and life cycle with our internal optimizations as well as our system solutions for sustainable construction, infrastructure & renovation Solution provider Internal optimization
Slide 140: Sustainable solutions for generations
Our vision Steering towards a better future – with Wienerberger Develop innovative, Increase smart & holistic customer solutions convenience Sustainable solutions for generations 140

Wienerberger — Investor Day (November 2021) on 6ix

Wienerberger — Investor Day (November 2021)

Slide 1: Wienerberger Capital Markets Day

Slide 2: Cautionary note regarding forward-looking statements

Slide 3: Contents

Slide 4: Key Group facts

Slide 5: Sustainable solutions for generations

Slide 6: ESG at Wienerberger

Slide 7: Sustainability has always been at Wienerberger's core

Slide 8: Defining measurable goals is key to tracking progress

Slide 9: Clearly defined KPIs for all areas of ESG

Slide 10: ESG targets defined, tracked and implemented at all management levels

Slide 11: UN 2030 Agenda for Sustainable Development

Slide 12: SDGs – More than just three letters

Slide 13: Focus areas with material impacts, risks and opportunities

Slide 14: Our ambitious 2023 ESG targets

Slide 15: We care & commit to people

Slide 16: People & stakeholder communication at the center

Slide 17: Health and Safety always on top of our mind

Slide 18: 80% of employees took part in our survey

Slide 19: Clear improvement against the Manufacturing norm

Slide 20: Code of Conduct published

Slide 21: People – Our key to long-term success

Slide 22: We care & commit to Governance

Slide 23: Key Improvements in 2021

Slide 24: Kati ter Horst strengthens the Board's skills

Slide 25: Skills matrix for current Board members

Slide 26: Core skills above sector peer benchmark

Slide 27: Ahead of peers in gender and international diversity

Slide 28: Skills matrix as basis for future Board candidates

Slide 29: Supervisory Board commits to highest governance standards

Slide 30: Current performance

Slide 31: Q3 2021 - Highlights

Slide 32: Financial Highlights

Slide 33: Q1-Q3 2021 Business Unit Overview

Slide 34: Self Help program delivered € 31 mn in YTD 2021

Slide 35: Right measures set to safeguard margins

Slide 36: Energy buying forward policy

Slide 37: Latest 2021 guidance supports our growth path

Slide 38: Continuous robust market development expected

Slide 39: Operational Q4 performance expected slightly above pre-crisis level

Slide 40: Wienerberger Group further raises FY guidance

Slide 41: The success story will continue in 2021

Slide 42: Megatrends & how we tackle them

Slide 43: We base our development on key megatrends

Slide 44: Knowing our customers' needs is crucial

Slide 45: Tackling our customers' needs lies at the heart of our solutions

Slide 46: Rapid transformation towards automation and prefabrication

Slide 47: Deep dive: Shortage of skilled labor as an opportunity

Slide 48: Deep dive: ClickBrick system

Slide 49: Digital tools for our customers

Slide 50: Free courses at our training centers

Slide 51: Fighting climate change with the right solutions

Slide 52: Resource-saving water management systems

Slide 53: Deep dive: Stormwater solutions in the Nordics

Slide 54: Deep dive: Flood prediction through IoT sensor input

Slide 55: Deep dive: Raineo smart water management

Slide 56: Wienerberger accelerating the energy transition

Slide 57: Undisrupted transportation for remote areas

Slide 58: Solutions to improve sustainable living

Slide 59: Sense of responsibility driving sustainable living

Slide 60: Upcoming EU stimulus programs

Slide 61: Stimulus programs drive the renovation wave

Slide 62: Solutions to support net zero carbon buildings

Slide 63: Net zero carbon buildings via sustainable materials

Slide 64: Deep dive: PV powered solar roof tiles

Slide 65: Deep dive: Heat pumps

Slide 66: Sustainable building envelope to tackle extreme heat and cold

Slide 67: Comparing wall systems with the same attributes

Slide 68: Full life cycle of a building (Cradle-to-Cradle)

Slide 69: Embodied carbon footprint comparison

Slide 70: Outperformance of timber by reducing carbon emissions

Slide 71: Clay the most environmentally friendly wall system

Slide 72: Supporting customers with the right solutions

Slide 73: Strong value generation

Slide 74: Transformation to a system solution provider

Slide 75: Strong financial performance over the last 10 years

Slide 76: We have fundamentally reshaped the Group

Slide 77: Expanding the share of innovative products

Slide 78: Revenue share of innovative products

Slide 79: Fast Forward as key performance driver