Wienerberger AG · VIE:WIE

Wienerberger — FY2015 Earnings Presentation

38 slides from Wienerberger's earnings presentation, 2016

  1. Slide 1: Investor and Analyst Presentation Financial Results 2015

    Investor and Analyst Presentation Financial Results 2015

  2. 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

  3. Slide 3: Highlights 2015

    Highlights 2015 WIENERBERGER...  GENERATES RECORD REVENUES  CLEARLY EXCEEDS EBITDA TARGET  RETURNS TO PROFIT ZONE  INCREASES DIVIDEND BY 33% TO € 0.20 PER SHARE …IS GEARED TOWARDS GROWTH 3

  4. Slide 4: 2015 in detail

    2015 in detail ► Revenues: € 2,972.4 mn | +5%  Improvement of average prices  Positive consolidation and foreign exchange effects  Slight organic volume decline ► Operating EBITDA: € 369.7 mn | +17%  Costs related to structural adjustments: € 17.5 mn  Contribution from sale of non-operating ass

  5. Slide 5: Business development by Division

    Business development by Division ► Clay Building Materials Europe  Improvement of average prices and consolidation effect compensate slight organic volume decline and costs related to structural adjustments  Positive market development in GB, NL, RO, BG, PL and HU | Decline in RU, IT und FR ► Pipe

  6. Slide 6: Wienerberger reaches all targets in 2015

    Wienerberger reaches all targets in 2015 Outlook 2015 ACT 2015 Operating Group EBITDA ~ € 355 mn € 369 mn thereof: Costs for structural adjustments up to € 20 mn € 18 mn thereof: Sale of non-operating assets ~ € 25 mn € 23 mn Price | Costs ~ 2% | ~ 1% ~ 3% | ~ 1% Depreciation ~ € 220 mn € 202 mn Net

  7. Slide 7: Dividend increase to € 0.20 per share

    Dividend increase to € 0.20 per share ► Clear earnings improvement and strong cash flow in 2015 as well as a positive outlook form the basis for the dividend recommendation:  € 0.20 per share ► Increase by 33% compared to prior year 7

  8. Slide 8: Results 2015

    mL Wienerberger Results 2015

  9. Slide 9: Revenue development 2015

    Revenue development 2015 3,100 3,000 +2% 2,972.4 +2% 2,900 +3% 2,834.5 in € mn 2,800 -2% 2,700 2,600 2,500 Revenue 2014 Sales Sales FX- Consolidation Revenue 2015 volume price effect effect Note: Rounding differences may arise from the automatic processing of data 9

  10. Slide 10: Income statement 2015

    Income statement 2015 2014 in € mn restated 1) 2015 Chg. in % Revenues 2,834.5 2,972.4 +5 Operating EBITDA 2) 317.2 369.7 +17 Operating EBITDA margin 11.2% 12.4% - Depreciation -217.0 -202.1 +7 Operating EBIT 2) 100.2 167.6 +67 Operating EBIT margin 3.5% 5.6% - Impairment / Reversal of impairment ch

  11. Slide 11: Proactive measures to enhance performance

    Proactive measures to enhance performance ► Costs for structural adjustments: € 17.5 mn ► Clay Building Materials Europe  In order to align our structures with market conditions, measures were implemented to adjust and relocate production capacities  Adjustments primarily affect Germany and Belgiu

  12. Slide 12: Profit after tax: € 69.8 mn

    Profit after tax: € 69.8 mn 2014 in € mn restated 1) 2015 Chg. in % EBIT -165.1 163.1 >100 Income from investments in associates -2.8 4.0 >100 Net interest result -52.9 -42.3 +20 Other financial results 5.5 -17.8 <-100 Financial results -50.2 -56.1 -12 Profit before tax -215.3 107.0 >100 Income taxe

  13. Slide 13: Sale of non-operating assets

    Sale of non-operating assets ► Sale of non-operating assets ongoing Sale of non-operating assets ► 2012-2015 non-operating assets worth 120 € 64.7 mn were sold 100 100 ► Until end of 2016 additional ~ € 35 mn to be realized 80 64.7 ► Cash inflow 2015: € 28.2 mn 60 (2014: € 14.3 mn) 40 ► EBITDA-contr

  14. Slide 14: Cash flow development

    Cash flow development 2014 in € mn restated 1) 2015 Chg. in € mn Chg. in % Gross cash flow 230.1 294.5 +64.4 +28 Change in working capital 2) -14.6 -34.2 -19.6 <-100 Normal capex -121.8 -137.7 -15.9 -13 Divestments and other +40.3 +12.5 -27.8 -69 Free cash flow 134.0 135.1 +1.2 +1 Growth capex 3) -1

  15. Slide 15: Working Capital development

    Working Capital development 2014 in € mn restated 1) 2015 Chg. in % Increase/decrease in inventories -6.5 -57.3 <-100 Increase/decrease in trade receivables -1.5 +20.2 >100 Increase/decrease in trade payables +8.8 -14.9 <-100 Increase/decrease in other net current assets -15.4 +17.8 >100 Change in w

  16. Slide 16: Total investments 2015

    Total investments 2015 in € mn 2014 2015 Chg. in % Normal capex 121.8 137.7 +13 in % of depreciation 60% 68% - Growth capex 41.3 10.1 -75 Total investments 163.1 147.8 -9 ► Normal capex includes besides maintenance also investments for technical upgrades in the production process and product innovat

  17. Slide 17: Development of net debt

    Development of net debt 800 700 621.5 600 +20.9 534.1 +147.8 500 in € mn 400 +20.9 +17.5 300 -294.5 200 100 0 31.12.2014 Gross cash flow Dividends Hybrid coupon Total investments Working capital 31.12.2015 & Others Note: Rounding differences may arise from the automatic processing of data 17

  18. Slide 18: Strong balance sheet

    Strong balance sheet 31/12/2014 in € mn 31/12/2013 restated 1) 31/12/2015 Chg. in % Equity 2) 2,254 1,986 2,054 +3 Net debt 539 622 534 -14 Equity ratio 54% 52% 56% - Gearing 24% 31% 26% - ► Change in net debt:  Increase in gross cash flow 2015: € +64.4 mn ► Change in equity:  Profit after tax imp

  19. Slide 19: Strong liquidity and balanced financing structure

    Strong liquidity and balanced financing structure ► Cash 31/12/2015: € 155 mn ► Credit lines: € 400 mn  thereof drawn 31/12/2015: € 88 mn  thereof undrawn 31/12/2015: € 312 mn ► Term structure: 600 500 400 in € mn 300 Undrawn credit lines 200 Hybrid Hybrid 100 Drawn 2014 2007 credit lines 0 2016 2

  20. Slide 20: Treasury ratios

    Treasury ratios Treasury ratios 31/12/2013 31/12/2014 1) 31/12/2015 Covenant Net debt / Operating EBITDA 2.0 1.9 1.4 <3.50 Operating EBITDA / Interest results 4.8 5.8 8.7 >3.75 1) Pro-forma calculation, including 12 months of EBITDA and interest results for Tondach Gleinstätten ► Improved EBITDA int

  21. Slide 21: Dividend 2015

    Dividend 2015 2014 in € mn restated 1) 2015 Free Cash Flow 134.0 135.1 Payment hybrid coupon -44.1 -20.9 Free Cash Flow post hybrid coupon 89.9 114.2 Dividend 17.5 23.4 Share 20% 20%  Conditions for reasonable and continous increase in the dividend: > Free Cash Flow for the reporting year > Liquidi

  22. Slide 22: Wienerberger Segments

    mL Wienerberger Wienerberger Segments

  23. Slide 23: Results 2015 by Segment

    Results 2015 by Segment Revenues: € 2,972.4 mn | +5% Op. EBITDA 1): € 369.7 mn | +17% Clay Building Pipes & Pavers North Holding Materials Europe Europe America & Others +2% +7% +16% +24% +3% +13% -3% 0% +17% >100% 1,400 1.170 1,200 1,000 800 in € mn 593 600 473 451 400 278 167 200 83 66 42 32 8 0 -

  24. Slide 24: Results 2015 by Product Group

    Results 2015 by Product Group EBITDA-margin improved to 12.4% (2014: 11.2%) 11% 18% 14% 1) 12% 10% EBITDA (2014: 11%) (2014: 23%) (2014: 10%) (2014: 11%) (2014: 9%) margin 1,200 984 1,000 800 679 621 600 557 in € mn 400 200 102 106 130 98 69 15 1 0 -21 -200 Wall Roof Facade Pavers Pipes Holding & Ot

  25. Slide 25: Clay Building Materials Western Europe Results 2015

    Clay Building Materials Western Europe Results 2015 CBM Western Europe (in € mn) 2014 2015 Chg. in % Ext. revenues Op. EBITDA 2015 2015 External revenues 1,142.0 1,170.2 +2 Operating EBITDA 1) 155.9 166.7 +7 39% 40% 49% Operating EBITDA margin 13.6% 14.2% - 45% Operating EBIT 1) 64.7 88.7 +37 1) Adj

  26. Slide 26: Clay Building Materials Eastern Europe Results 2015

    Clay Building Materials Eastern Europe Results 2015 CBM Eastern Europe (in € mn) 2014 2015 Chg. in % Ext. revenues Op. EBITDA 2015 2015 External revenues 408.5 472.8 +16 Operating EBITDA 1) 66.8 82.6 +24 Operating EBITDA margin 16.4% 17.5% - 49% Operating EBIT 1) 19.7 32.8 +67 16% 22% 1) Adjusted fo

  27. Slide 27: Pipes & Pavers Western Europe Results 2015

    Pipes & Pavers Western Europe Results 2015 P&P Western Europe (in € mn) 2014 2015 Chg. in % Ext. revenues Op. EBITDA 2015 2015 External revenues 574.3 592.7 +3 Operating EBITDA 1) 58.3 65.6 +13 Operating EBITDA margin 10.1% 11.1% - 49% 18% 20% Operating EBIT 1) 27.5 40.2 +46 1) Adjusted for non-recu

  28. Slide 28: Pipes & Pavers Eastern Europe Results 2015

    Pipes & Pavers Eastern Europe Results 2015 P&P Eastern Europe (in € mn) 2014 2015 Chg. in % Ext. revenues Op. EBITDA 2015 2015 External revenues 467.0 450.8 -3 Operating EBITDA 1) 42.1 42.3 0 11% 15% Operating EBITDA margin 9.0% 9.4% - 49% Operating EBIT 1) 20.2 21.3 +5 1) Adjusted for non-recurring

  29. Slide 29: North America Results 2015

    North America Results 2015 North America (in € mn) 2014 2015 Chg. in % Ext. revenues Op. EBITDA 2015 2015 External revenues 236.4 277.5 +17 9% 9% Operating EBITDA 1) 11.2 32.2 >100 Operating EBITDA margin 4.8% 11.6% - 49% Operating EBIT 1) -11.2 7.7 >100 1) Adjusted for non-recurring income and expe

  30. Slide 30: Outlook 2016

    mL Wienerberger Outlook 2016

  31. Slide 31: Strategic focus 2016

    Strategic focus 2016 INNOVATIVE PRODUCTS AND SYSTEM SOLUTIONS OPERATIONAL EXCELLENCE INTEGRATION OF THE ROOF TILE AND CLAY BLOCK ACTIVITIES IN EASTERN EUROPE COMPLETION OF THE SALE OF NON-OPERATING ASSETS PROGRAM GROWTH PROJECTS AND PORTFOLIO OPTIMIZATION 31

  32. Slide 32: Growth projects and portfolio optimization

    Growth projects and portfolio optimization ► Wienerberger continuously evaluates existing business areas and growth projects ► Investment and divestment decisions are based on the same criteria ► Wienerberger invests € 40 mn in growth projects, including:  Plant expansions in plastic pipe, brick an

  33. Slide 33: Wienerberger Group: Outlook 2016

    Wienerberger Group: Outlook 2016 Operating Group EBITDA € 405 mn thereof: Sale of non-operating assets € 15 mn Price | Costs * ~ 1.0% | ~ 1.5% Depreciation ~ € 200 mn Net interest result ~ € -35 mn Working Capital in % of revenue at year-end ~ 20% Normal capex ~ € 145 mn Growth capex ~ € 40 mn * Div

  34. Slide 34: Management forecast: Development of residential construction 2016

    Wienerberger Management forecast: Development of residential construction 2016 Mountain Region Midwest Mid-Atlantic +10% +4% +12% +2% -6% +1% Southeast +3% +4% Source: Management estimate (Housing starts) +1% +13% +8% -6% +12% -2% +2% Market growth (>2%) Stable development Market decline (<-2%) Sour

  35. Slide 35: Management forecast: Roof tile renovation market 2016

    Wienerberger Management forecast: Roof tile renovation market 2016 ► Ongoing weakness in the renovation market  Lack of public incentive programs  Postponements of thermal renovation projects due to lower energy prices  Public budget constraints limit monument protection spending +3% Market growt

  36. Slide 36: Outlook by Division

    Outlook by Division ► Clay Building Materials Europe  Stable to slightly positive development in residential construction > Positive trends in GB, NL, HU, RO, BG and PL > Trend reversal in France confirmed > Successful implementation of structural adjustments in GER > Market decline in Belgium, Swi

  37. Slide 37: Mid-term targets

    Mid-term targets 2016 2020 Revenue development 5 4 GROUP REVENUES in € bn GROUP REVENUES 3 > € 3 bn 2 ~ € 4 bn 1 0 EBITDA development 700 GROUP EBITDA 1) 600 GROUP EBITDA 500 in € mn 400 € 390 mn 300 > € 600 mn 200 100 0 1) Adjusted for contribution from sale of non-operating assets 37

  38. Slide 38: Thank you for your attention!

    Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerberg City, Wienerbergstrasse 11 T +43 1 60192 10221 / F +43 1 60192 10425, investor@wienerberger.com / www.wienerberger.com Thank you for your attention!

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