Wienerberger Ag · VIE:WIE
Wienerberger — Q1-3 2023 Earnings Presentation
34 slides from Wienerberger's earnings presentation, Nov 9, 2023
Slide 1: Results Q1-3 2023
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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: Highlights 2023: Our Achievements in 2023
HIGHLIGHTS 2023 OUR ACHIEVEMENTS IN 2023 Significant Innovation Price outperformance rate of 30% over cost of end markets and rising First € 350 mn sustainability-linked bond successfully placed 2023 Proactive cost management 3
Slide 4: Softening Inflation, But Markets Remain Challenging
EXECUTIVE SUMMARY Q1-3 2023 SOFTENING INFLATION, BUT MARKETS REMAIN CHALLENGING › Slightly softening inflation, however still high interest and mortgage rates Challenging market environment: › Geopolitical instability › Softening end markets › Proactive cost management and continuation of self-help
Slide 5: Expected End Market Development 2023
END MARKET EXPECTATIONS 2023 EXPECTED END MARKET DEVELOPMENT 2023 EUROPE NORTH AMERICA › Better market development NEW BUILD -35% -20% in new build in Europe East RENOVATION -15% -3% and › positive development in INFRASTRUCTURE -5% stable infrastructure 5
Slide 6: We Reacted Quickly to Changing Market Environment
EXECUTIVE SUMMARY Q1-3 2023 WE REACTED QUICKLY TO CHANGING MARKET ENVIRONMENT › Slightly softening inflation, however still high interest andmortgage rates Challenging market environment: › Geopolitical instability › Softening end markets › Proactive cost management and continuation of self-help pro
Slide 7: Efficient Cost Management and Self-Help Program
EXECUTIVE SUMMARY Q1-3 2023 EFFICIENT COST MANAGEMENT AND SELF-HELP PROGRAM › Proactive cost management € 49 mn € 665 mn Operating EBITDA › Self-help measures € 34 mn 20.2% › Price over cost outperformance 4-5 % Operating EBITDA Margin 7
Slide 8: Well on Track to Reach FY 2023 Guidance of € 800-820 mn Operating EBITDA
EXECUTIVE SUMMARY Q1-3 2023 WIENERBERGER WELL ON TRACK TO REACH FY 2023 GUIDANCE OF € 800-820 MN OPERATING EBITDA › Slightly softening inflation, however still high interest and mortgage rates Challenging market environment: › Geopolitical instability › Softening end markets › Proactive cost managem
Slide 9: Update on Terreal Transaction
EXECUTIVE SUMMARY Q1-3 2023 UPDATE ON TERREAL TRANSACTION › All regulatory approvals for wienerberger scope received without material remedies › Waiting for secondary transaction to be approved by antitrust authorities › 2023 guidance does not include Terreal transaction Closing expected at year end
Slide 10: Financials Q3 2023
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Slide 11: Strong Third Quarter Results
Q3 2023 STRONG THIRD QUARTER RESULTS Revenue Operating EBITDA € 1,083 mn € 211 mn (Q3 2022: € 1,276 mn | -15%) (Q3 2022: € 274 mn | -23%) Net result Operating EBITDA margin € 89 mn 19.5% (Q3 2022: € 166 mn | -46%) (Q3 2022: 21.5% | -200bp) 11
Slide 12: Revenue Development Q3 2023
REVENUE DEVELOPMENT Q3 2023 BETTER MARKET MOMENTUM IN EUROPE EAST AND POSITIVE DEVELOPMENT IN INFRASTRUCTURE -175 -38 in € mn Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Financial Reporting in Hype
Slide 13: Operating EBITDA Development Q3 2023
OPERATING EBITDA DEVELOPMENT Q3 2023 OPERATING EBITDA POSITIVELY INFLUENCED BY PROACTIVE COST MANAGEMENT AND SELF-HELP MEASURES -56 -9 in € mn Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Financial
Slide 14: Improved Infrastructure Business and Stabilization in New Build Europe East
Q3 2023 IMPROVED INFRASTRUCTURE BUSINESS AND STABILIZATION IN NEW BUILD EUROPE EAST External revenues (in € mn) Q3 2023 Q3 2022 Chg. in % Europe West 540.0 622.3 -13 › Europe East overall developed better compared Europe East 319.5 386.9 -17 to H1 2023 North America 223.4 266.6 -16 wienerberger Grou
Slide 15: Financials Q1-3 2023
FINANCIALS Q1-3 2023 15
Slide 16: Results Q1-3 2023
Q1-3 2023 RESULTS Q1-3 2023 Revenue Operating EBITDA € 3,286 mn € 665 mn (Q1-3 2022: € 3,848 mn | -15%) (Q1-3 2022: € 820 mn | -19%) Net result Operating EBITDA margin € 313 mn 20.2% (Q1-3 2022: € 487 mn | -36%) (Q1-3 2022: 21.3% | -110bp) 16
Slide 17: Revenue Development in the First Nine Months of 2023
REVENUE DEVELOPMENT Q1-3 2023 REVENUE DEVELOPMENT IN THE FIRST NINE MONTHS OF 2023 -534 -78 in € mn Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) i
Slide 18: Wienerberger Ensures Profitability at High Level
OPERATING EBITDA DEVELOPMENT Q1-3 2023 WIENERBERGER ENSURES PROFITABILITY AT HIGH LEVEL, BASED ON STRICT PRICE AND COST MANAGEMENT -145 -15 in € mn Note: Rounding differences may arise from automatic processing of data * Foreign exchange effects include the impact of the application of IAS 29 (Finan
Slide 19: Proactive Cost Management
Q1-3 2023 PROACTIVE COST MANAGEMENT Q1-3 2023 Cost efficiency in production › Adjustment of maintenance measures to reduced € 49 mn production activity › Continued focus on initiatives to reduce CO2 emissions saved by strict Cost efficiency during shutdowns cost management › Well-prepared and proact
Slide 20: Proactive Measures to Safeguard Normalized Working Capital and Net Debt / EBITDA
Q1-3 2023 PROACTIVE MEASURES TO SAFEGUARD NORMALIZED WORKING CAPITAL AND RESILIENT NET DEBT / EBITDA AT YEAR END in € mn 30/09/2023 31/12/2022 31/12/2023e Net debt 1,360.8 1,079.3 < € 1.1 bn (Net debt pre-Terreal) Net debt / EBITDA 1.6x 1.1x < 1.5x (Net debt / EBITDA pre-Terreal) Working Capital / R
Slide 21: Outlook
OUTLOOK 21
Slide 22: Expected End Market Development 2023
END MARKET EXPECTATIONS 2023 EXPECTED END MARKET DEVELOPMENT 2023 EUROPE NORTH AMERICA NEW BUILD -35% -20% RENOVATION -15% -3% INFRASTRUCTURE -5% stable 22
Slide 23: We Continue to Take Proactive Measures Supporting Profitability
OUTLOOK 2023 WE CONTINUE TO TAKE PROACTIVE MEASURES THAT SUPPORT OUR PROFITABILITY AND RESILIENT BALANCE SHEET Cost management Earnings enhancement savings of EBITDA contribution by our up to € 70 mn for FY 2023 expected Self-Help Program Capex cut reduction by € 30 mn for FY 2023 Price over cost 4-
Slide 24: Proactive Cash Management: We Cut Our Capex in 2023
OUTLOOK 2023 PROACTIVE CASH MANAGEMENT IN DECLINING MARKETS: WE CUT OUR CAPEX IN 2023 Maintenance capex Special capex FY 2023 -11% -9% € 30 mn € 165 mn CAPEX cut € 150 mn € 140 mn ___________________________ € 125 mn › € 15 mn less maintenance capex › € 15 mn less special capex Maintenance capex: In
Slide 25: Strong Market Outperformance in 2023
OUTLOOK 2023 STRONG MARKET OUTPERFORMANCE IN 2023 1200 110% wienerberger 1,020 1000 100% guidance 2023100% 96% 910 93% 91% 91% 800-820 Market level (in %) EBITDA (in € mn) 800 90% 694 610 600 80% 443 73% 400 70% 200 60% 0 50% 2018 2019 2021 2022 2022 2023e Sustainable EBITDA Note: Market level accor
Slide 26: Confirming Guidance of € 800-820 mn Operating EBITDA
OUTLOOK 2023 CONFIRMING GUIDANCE OF € 800-820 MN OPERATING EBITDA € 800-820 mn In Q4 we will… € 665 mn € 135-155 mn › further focus on our working capital management and › reduce Net Debt by € ~300 mn to < € 1.1bn Planned inventory reduction is included in the operating EBITDA guidance of € 135-155
Slide 27: Appendix
APPENDIX
Slide 28: Q1-3 2023 Europe West
Q1-3 2023 | EUROPE WEST PROFITABILITY AT HIGH LEVEL DUE TO STRICT COST MANAGEMENT AND EFFICIENCY GAINS EUROPE WEST › System solutions for the entire building envelope (wall, roof, facade) and pavements as well as for wastewater and rainwater disposal, sanitation, › Weaker new build activity in all h
Slide 29: Q1-3 2023 Europe East
Q1-3 2023 | EUROPE EAST DISCIPLINED COST MANAGEMENT AND ADJUSTED PLANT CAPACITIES TO KEEP PROFITABILITY ON A HIGH LEVEL EUROPE EAST › Solutions for the building envelope (wall and roof) and pavements as well › Despite slight declines in inflation at as for wastewater and rainwater disposal, sanitati
Slide 30: Q1-3 2023 North America
Q1-3 2023 | NORTH AMERICA INCREASED PROFITABILITY BASED ON STRONG CONTRIBUTION FROM PIPES BUSINESS NORTH AMERICA › Ceramic façade solutions as well as piping solutions for sustainable water supply, rainwater sewage, and environmentally conscious wastewater › Lower volumes in new build, disposal espe
Slide 31: Operating EBITDA 19% Down on Exceptionally Strong Prior Year
EBITDA DEVELOPMENT Q1-3 2023 OPERATING EBITDA 19% DOWN ON EXCEPTIONALLY STRONG PRIOR YEAR EBITDA DEVELOPMENT Reported Operating EBITDA adjustments (in € mn) Q1-3 2023 Q1-3 2022 -22% -19% EBITDA reported 655.0 835.4 Sale of assets1) -4.4 -15.9 Structural adjustments2) 14.5 0.0 Operating EBITDA 665.1
Slide 32: Income Statement
Q1-3 2023 INCOME STATEMENT in € mn Q1-3 2023 Q1-3 2022 Chg. in % Revenues 3,285.8 3,848.0 -15 Operating EBITDA 665.1 819.6 -19 EBITDA 655.0 835.4 -22 Impairment charges to assets - -16.1 >100 EBIT 443.0 613.0 -28 Financial result -50.1 -24.2 <-100 Profit before tax 393.0 588.8 -33 Income taxes -79.8
Slide 33: Cash Flow Statement
Q1-3 2023 CASH FLOW STATEMENT in € mn Q1-3 2023 Q1-3 2022 Chg. in % Gross cash flow 514.7 713.3 -28 Change in working capital -408.9 -293.9 -39 Maintenance Capex -81.7 -76.8 -6 Divestments and other 11.2 52.6 -79 Lease payments -43.9 -44.4 1 Free cash flow -8.5 350.8 <-100 Special Capex -75.3 -81.5
Slide 34: Contact / Financial Calendar
CONTACT Wienerberger AG Investor Relations Wienerbergerplatz 1, 1100 Vienna wienerberger.com/en/investors investor@wienerberger.com +43 1 60192 10221 FINANCIAL CALENDAR February 21, 2024 Results for the Full Year 2023 March 25, 2024 Publication of the 2023 Annual Report May 7, 2024 155th Annual Gene