Wienerberger Ag · VIE:WIE
Wienerberger — H1 2024 Earnings Presentation
45 slides from Wienerberger's earnings presentation, Aug 14, 2024
Slide 1: Results H1 2024
RESULTS H1 2024 AUGUST 14, 2024 1
Slide 2: Disclaimer: 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: Overview H1 2024 – Executive Summary
OVERVIEW H1 2024 – EXECUTIVE SUMMARY SOLID PERFORMANCE IN THE SECOND QUARTER OF 2024 CONFIRMS H1 GUIDANCE Revenue Operating EBITDA Operating EBITDA margin € 2,213 mn € 400 mn 18.1% (H1 2023: € 2,203 mn | 0%) (H1 2023: € 454 mn | –12%) (H1 2023: 20.6% | –250bp) Standstill Cost Cost management Terreal
Slide 4: Proactive cost and cash optimization supports stability in challenging housing market
OVERVIEW H1 2024 – WIENERBERGER END MARKET EXPOSURE PROACTIVE COST AND CASH OPTIMIZATION SUPPORTS STABILITY IN A CHALLENGING RESIDENTIAL HOUSING MARKET wienerberger end market exposure › Resilient development in renovation and infrastructure end-markets (~53% of end market exposure) Infrastructure ›
Slide 5: Single-family housing markets at a historical low
OVERVIEW H1 2024 SINGLE-FAMILY HOUSING MARKETS IN MOST CONTINENTAL EUROPEAN COUNTRIES AT A HISTORICAL LOW 2024 vs. Ø 2009-2011 2024 vs. 2023 Single-Family Housing Single-Family Housing Netherlands Belgium Poland Czechia –18% Germany –33% +15% –1% Belgium Hungary –37% –20% –14% Hungary Germany France
Slide 6: 2024: A major election year in our markets
POLITICAL ENVIRONMENT 2024: A MA JOR ELECTION YEAR IN OUR MARKETS › 2024 is a major election year with some unexpected results so far (e.g. France, Netherlands) › European Parliament Election * 2024/New EU-Commission › Restrained decision making in election years › Certain elections create uncertain
Slide 7: Positive sentiment for housing markets supported by EU-wide and national initiatives
HOUSING INITIATIVES POSITIVE SENTIMENT FOR HOUSING MARKETS SUPPORTED BY EU-WIDE AND NATIONAL INITIATIVES Netherlands › EU Launches key housing initiatives: +100,000 new homes Belgium › Implementation of a Housing Commissioner annually 1 € bn Germany › Affordable Housing Plan to stimulate the Investm
Slide 8: Positive sentiment for new residential housing market
END MARKETS H1 2024 POSITIVE SENTIMENT FOR NEW RESIDENTIAL HOUSING MARKET › Positive development in Eastern European new residential housing markets › Slight increase in UK / Ireland new residential housing construction › Bottoming out in Central Western European (AT/DE/FR/BE/NL) new residential hou
Slide 9: Financials Q2
FINANCIALS Q2 9
Slide 10: Volume development Q2 2024 vs. 2023 – Overview
VOLUME DEVELOPMENT Q2 2024 VS. 2023 – OVERVIEW POSITIVE DEVELOPMENTS IN Q2 IN EUROPE EAST OFFSETS VOLUME DECREASE IN EUROPE WEST; SLOW DOWN IN NORTH AMERICA Ceramics –8% Ceramics +13% Ceramics –11% Pipes +1% Pipes +3% Pipes +1% Europe West –5% Europe East +10% EUROPE +0% NORTH AMERICA –8% OVERALL DE
Slide 11: Revenue Bridge Q2 2024
REVENUE BRIDGE Q2 2024 EUROPE EAST NEARLY BALANCES OUT CERAMIC LOSSES IN EUROPE WEST AND NORTH AMERICA; STABLE PIPING BUSINESS Revenue Bridge in € mn › Sales volume shortfalls in ceramics Europe West and –6% organic +163 1,261 North America almost compensated by gains in 1,150 –17 –2 –35 ceramics Eu
Slide 12: Operating EBITDA Bridge Q2 2024
OPERATING EBITDA BRIDGE Q2 2024 ACTIVE COST MANAGEMENT REFLECTED IN ORGANIC EBITDA GROWTH AND STRONG OPERATING EBITDA MARGIN Operating EBITDA Bridge in € mn › Sales volume effect includes negative impact of lower capacity utilization / +5% organic +28 285 standstill costs of € –3 mn 245 –7 –24 +16 +
Slide 13: Restructuring Program 2024: Restructurings & Capacity Adjustments
RESTRUCTURING PROGRAM 2024: RESTRUCTURINGS & CAPACITY ADJUSTMENTS PROACTIVE MEASURES TO TEMPORARY REDUCE PRODUCTION CAPACITIES AND RESPOND TO CHALLENGING MARKET BACKDROP › 10 plants mothballed/closed (–376 FTEs) › 5 Facing bricks › 2 Clay blocks › 1 Roof tile › 2 Concrete pavers › 6 production lines
Slide 14: Financials H1 2024
FINANCIALS H1 2024 14
Slide 15: Volume development H1 2024 vs. 2023 – Overview
VOLUME DEVELOPMENT H1 2024 VS. 2023 – OVERVIEW STABLE PERFORMANCE IN EASTERN EUROPE PARTLY OFFSETS DECLINE IN WESTERN EUROPE Ceramics –13% Ceramics –1% Ceramics –12% Pipes –1% Pipes –1% Pipes +6% Europe West –9% Europe East –1% EUROPE –6% NORTH AMERICA –7% OVERALL DECLINE: –6% Note: Rounding differe
Slide 16: Revenue Bridge H1 2024
REVENUE BRIDGE H1 2024 SOLID PIPING AND M&A CONTRIBUTIONS LEAD TO STABLE REVENUES Revenue Bridge in € mn › Organic sales volume decline due to ceramics in 2,203 –130 –9% organic +202 2,213 Europe West and North America, while the piping business recorded an overall stable development –7 –57 +2 › –6%
Slide 17: Deep Dive: Cost Inflation H1 2024
DEEP DIVE: COST INFLATION H1 2024 COST INFLATION IN H1 2024 Personnel costs Raw materials Energy Granulates +5% +1% –4% –13% High pressure in salary No more inflation catch-up Benefitting from forward +/-flat development negotiations due to expected in 2024 buying strategy expected in H2 after decli
Slide 18: Deep Dive: Price over Cost H1 2024
DEEP DIVE: PRICE OVER COST H1 2024 INTENTIONAL PRICE ADAPTIONS IN CERAMICS EUROPE EAST; LOWER SALES PRICES IN PIPING MITIGATED BY REDUCTION IN VARIABLE COSTS EUROPE NORTH AMERICA GROUP CERAMICS PIPING CERAMICS PIPING TOTAL SALES PRICE –3% –3% +3% –15% –3% COST INFLATION –0.5% –3% +1% –14% –1.5% 18
Slide 19: Deep Dive: Capacity Utilization Ceramics Europe
DEEP DIVE: CAPACITY UTILIZATION CERAMICS EUROPE LONGER STANDSTILLS MAINLY IN Q1 LED TO LOWER CAPACITY UTILIZATION AND… EUROPE WEST EUROPE EAST CERAMICS EUROPE H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 WALL 44% 64% 52% 56% 49% 58% ROOF 60% 87% 56% 83% 58% 85% FACADE 63% 83% – – 63% 83% TOTAL 59
Slide 20: Deep Dive: Finished Goods Stock Level H1 2024 vs H1 2023
DEEP DIVE: FINISHED GOODS STOCK LEVEL H1 2024 VS H1 2023 …OPTIMIZED INVENTORY LEVELS IN H1 2024 Ceramics Europe: Normalized finished goods stock level at € 400–440 mn H1 2024 vs. YE 2023 H1 2023 vs. YE 2022 +140 500 –32 500 € 439 mn € 448 mn 450 450 € 407 mn Normalized inventory level Normalized inv
Slide 21: Deep Dive: Cost Management
DEEP DIVE: COST MANAGEMENT REMARKABLE CONTRIBUTION OF IMPLEMENTED COST MANAGEMENT MEASURES Cost Management › Various cost cutting measures successfully implemented during 2023 as well as in H1 2024 wienerberger group Overhead cost cut › Total effects could fully cover overhead cost inflation of arou
Slide 22: Operating EBITDA Bridge H1 2024
OPERATING EBITDA BRIDGE H1 2024 PROACTIVE COST MANAGEMENT MEASURES AND SELF-HELP INITIATIVES LIMIT END MARKET DRIVEN OPERATING EBITDA SHORTFALL Operating EBITDA Bridge in € mn › Sales volume effect includes negative impact of 454 –101 –19% lower capacity utilization / standstill costs of organic +33
Slide 23: Deep Dive: EBITDA Adjustments
DEEP DIVE: EBITDA ADJUSTMENTS IMPLEMENTED ONE-TIME RESTRUCTURING COSTS ARE EXCLUDED FROM OPERATING EBITDA EBITDA adjustments (in € mn) H1 2024 H1 2023 EBITDA reported 340.5 448.2 › Sale of assets: sale of non-core real estate Sale of assets1) –9.9 –3.5 › Structural adjustments: one-time restructurin
Slide 24: Major One-Off Items
MA JOR ONE-OFF ITEMS MA JOR ONE-OFFS OF ROUGHLY € 150 MN IMPACT RESULTS › Other operating Income in € mn H1 2024 › Sale of assets: sale of non-core real estate and gain from the disposal of the Russian business Major one-off items › Other operating Expenses Sale of assets –9.9 Special write-offs due
Slide 25: Deep Dive: Europe West
DEEP DIVE: EUROPE WEST NEW RESIDENTIAL HOUSING IN CENTRAL WESTERN EUROPE UNDER PRESSURE › Decline in demand for new residential housing particularly in Germany, France, Belgium, EUROPE WEST Netherlands › Stable to good demand in infrastructure; positive results in € mn H1 2024 H1 2023 Chg. in % espe
Slide 26: Deep Dive: Europe East
DEEP DIVE: EUROPE EAST POSITIVE SENTIMENT IN NEW RESIDENTIAL HOUSING MARKET; RENOVATION AND INFRASTRUCTURE STABLE › New residential housing, which has been under pressure since 2023, sees EUROPE EAST further signs of recovery › Renovation and infrastructure end in € mn H1 2024 H1 2023 Chg. in % mark
Slide 27: Deep Dive: North America
DEEP DIVE: NORTH AMERICA SOLID MARGINS SUPPORTED BY DISCIPLINED PRICE MANAGEMENT › Growth in new residential housing slowed due to high interest rates and NORTH AMERICA political uncertainties › Stable demand in Texas, while in € mn H1 2024 H1 2023 Chg. in % Canada and Eastern markets of US especial
Slide 28: Sustainability Program 2026 and Innovation
SUSTAINABILITY PROGRAM 2026 AND INNOVATION © Robert Staudinger 28
Slide 29: Sustainability Program 2026 at Wienerberger
SUSTAINABILITY PROGRAM 2026 AT WIENERBERGER WIENERBERGER‘S SUSTAINABILTIY TARGETS Sustainability Program: Decarbonization and Energy Mix Health & Safety We are on track to achieve our ✓ interim targets in 2024 Biodiversity Circularity Revenue from prod- ucts supporting net zero buildings Waste manag
Slide 30: Sustainability & Innovation at Wienerberger
SUSTAINABILITY & INNOVATION AT WIENERBERGER OUR COMMITMENT TO SUSTAINABILITY IS DEEPLY INTERTWINED WITH OUR DRIVE FOR INNOVATION SUSTAINABILITY › Driving Sustainable Growth: Innovation supports achieving our sustainability goals › State of the art plants: Continuous upgrades of our facilities lead t
Slide 31: Major capital investment projects developing according to plan (1/2)
INNOVATION MA JOR CAPITAL INVESTMENT PROJECTS ARE DEVELOPING ACCORDING TO PLAN (1/2) Cutting-Edge Industry 4.0 Plant Pioneering New Paths in the Decarbonization of Fully automated concrete roof tile production Manufacturing Processes Hejőpapi, Hungary Uttendorf, Austria › CO2-Neutral Process: Heat p
Slide 32: Major capital investment projects developing according to plan (2/2)
INNOVATION MA JOR CAPITAL INVESTMENT PROJECTS ARE DEVELOPING ACCORDING TO PLAN (2/2) Fully electrified clay roof tile plant in Broomfleet State-of-the-art PVC recycling capabilities North East of England Ljung, Sweden › Fully electrified clay roof tile plant, eliminating natural gas › High-Quality R
Slide 33: Innovation: WLTR masonry robot
INNOVATION AT WIENERBERGER: DEEP DIVE ROBOTICS THE FUTURE OF BUILDING: WIENERBERGER LAUNCHES ADVANCED WLTR MASONRY ROBOT TO AUTOMATE MASONRY PROCESSES › Masonry robot revolutionizes the Construction Industry through Innovation and Automation › Addresses the labor shortage › Enhanced efficiency and p
Slide 34: Outlook 2024
OUTLOOK 2024 34
Slide 35: Outlook H2 2024 (1/3)
OUTLOOK 2024 OUTLOOK H2 2024 (1/3) › Initial market assumptions for 2024 were based on a stronger improvement in new residential housing markets especially in H2 2024. However, this development is currently not confirmed: › Market for single-family homes (SFH) is significantly below expectations › B
Slide 36: Deep Dive: Terreal Integration
DEEP DIVE: TERREAL INTEGRATION TERREAL INTEGRATION ACCORDING TO PLAN Expected EBITDA contribution 2024–2027 Swift and efficient integration on track: € 150 mn › Day one post-closing: one combined organization per country with strong joint management teams › Since Q2 2024: "one face to the customer"
Slide 37: Deep Dive: Net Debt & Financial Leverage
DEEP DIVE: NET DEBT & FINANCIAL LEVERAGE POSITIVE H2 2024 CASH FLOW EXPECTED AS GROUP DE-LEVERS DOWN TO ITS TARGET (<2.0x) Net Debt Bridge Leverage Ratio Development in € mn Net Debt / Operating EBITDA ~2,050 ~–300 ~220 ~–400 2.5 2.6 2.3 ~30 ~1,600 <2.0 1.5 2023 Q1 2024 Q2 2024 Q3 2024 2024 –22% EBI
Slide 38: Outlook H2 2024 (2/3)
OUTLOOK 2024 OUTLOOK H2 2024 (2/3) OPERATING EBITDA H2 2024 € ~400–420 mn › The market activity of H1 2024 will continue € 357 mn in H2 › Sales volumes on group level close to prior year H2 2023 expected › Price-cost-spread improving compared to H1 2024 › Cost measures and efficiency improvements to
Slide 39: Outlook H2 2024 (3/3)
OUTLOOK 2024 OUTLOOK H2 2024 (3/3) Operating EBITDA guidance 2024 of € ~800 – 820 mn 39
Slide 40: Market pick-up expected in 2025, normalizing in 2026
OUTLOOK 2024 MARKET PICK-UP EXPECTED IN 2025, NORMALIZING IN 2026… 2024 2025 2026 Bottom-building Full market recovery Normalized year + market level Cost savings from measures in 2024 will additionally contribute to the 2025 results 40
Slide 41: We confirm our mid-term target for 2026
OUTLOOK 2024 …THEREFORE, WE CONFIRM OUR MID-TERM TARGET FOR 2026 Governmental initiatives support new residential housing markets Operating EBITDA 2026 >1.2 bn Strong underlying housing demand € confirmed. Increased regulations for energy efficient housing 41
Slide 42: Appendix
APPENDIX at
Slide 43: Income Statement
APPENDIX INCOME STATEMENT in € mn H1 2024 H1 2023 Chg. in % Revenues 2,213.2 2,202.5 0 Operating EBITDA 400.1 454.1 –12 EBITDA 340.5 448.2 –24 Operating EBIT 171.0 307.4 –44 Impairment charges to assets –49.4 0.0 <–100 EBIT 121.5 307.4 –60 Financial result –88.2 –28.3 <–100 Profit before tax 33.3 27
Slide 44: Cash Flow Statement
APPENDIX CASH FLOW STATEMENT in € mn H1 2024 H1 2023 Chg. in % Gross cash flow 211.6 361.7 –41 Change in working capital –213.4 –426.2 50 Maintenance Capex –53.8 –52.5 –2 Divestments and other 39.7 8.9 >100 Lease payments –35.7 –29.0 –23 Free cash flow –51.5 –137.1 62 Special Capex –64.0 –44.1 –45 M
Slide 45: 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 November 12, 2024 Results for the First Three Quarters of 2024 45