Wienerberger AG · VIE:WIE

Wienerberger — FY2011 Earnings Presentation

40 slides from Wienerberger's earnings presentation, Feb 21, 2012

  1. Slide 1: Investor & Analyst Meeting

    Investor & Analyst Meeting Wienerberger 2011 at a Glance | Results 2011 & Financing | Wienerberger Markets 2011 | Strategy | Outlook 2012 | Dividend February 21, 2012 Disclaimer Cautionary note regarding forward-looking statements  The information contained in this document has not been independent

  2. Slide 2: Very Different Market Developments in Individual Markets in 2011

    Very Different Market Developments in Individual Markets in 2011 North America Further difficult market environment Eastern Europe Slight growth in PL, CZ and RUS Western Europe Further difficult market environment Slight growth in GER, F, B, CH in the rest of Eastern Europe UK and NL stable on low

  3. Slide 3: Wienerberger Outperformed Markets in 2011

    Development of Significant Group Markets vs. Wienerberger Volume Growth in 2011 Market Wienerberger Slightly growing demand for building materials, Moderate volume growth in all Belgium Renovation market on sound level product groups Slight growth of new residential construction, Market share gains,

  4. Slide 4: Change in Wienerberger Strategy since 2009

    Wienerberger Strategy 7 Change in Wienerberger Strategy since 2009 Since 2010 Strategic shift towards a company supplying future-oriented building material solutions 2009 Restructuring with focus on cash preservation and Until 2009 financial discipline (External) Expansion driven growth course - € 2

  5. Slide 5: Strong Balance Sheet & Ample Liquidity

    Strong Balance Sheet & Ample Liquidity  Strong balance sheet - Equity ratio of 60% | Gearing of 18% as of 31/12/2011 - Large headroom to covenants on bank debt  Liquidity and term structure - Cash reserve of € 504 mn as of 31/12/2011 - Refinancing requirements covered until the end of 2013 - Small

  6. Slide 6: Operational Excellence

    1 Operational Excellence Ongoing Projects to improve operational excellence  Cost management - Clustering of plants and production shifts - Supply chain management - Environmental Action Plan (EAP): reduce specific energy consumption  Health & Safety Program - Implementation of strict health & saf

  7. Slide 7: Broaden Core Business

    3 Broaden Core Business Pipelife acquisition enlarges exposure to renovation in % of Group revenues New built 70% 60% Pipelife acquisition Renovation 30% 40% Source: Company information Reduced dependency on new built 13 Streamlining of our Industrial Portfolio Two major steps in streamlining our in

  8. Slide 8: Pipelife: Market Leader or #2 in Relevant Markets

    Market Leader or #2 in Relevant Markets in More than 15 European Countries  Pipelife operates 27 plants | #2 present in 27 countries #1 #1 #1  Strategic target is to become #1 or #1 #2 in markets where Pipelife is #2 active #1  Revenue FY 2011: € 805 mn #3 #2 #3 #3  EBITDA FY 2011: € 69 mn #2 #1

  9. Slide 9: Strong Strategic Fit between Wienerberger and Pipelife

    Strong Strategic Fit between Wienerberger and Pipelife Key Investment Highlights of Pipelife Acquisition  Pipelife is market leader or #2 in relevant markets in more than 15 Market Leader European countries  Strong positions in Scandinavia and Austria  Pipelife has an increased focus on innovatio

  10. Slide 10: Tondach: Sound Development in Difficult Markets in 2011

    Tondach: Sound Development in Difficult Markets in 2011  Consolidated in operating segment CEE since July 1, 2011  Difficult market environment in 2011  Good performance in Austria and the Czech Republic  New capacity in Hungary  Strong access to decision makers  Seasonality: business typicall

  11. Slide 11: Results 2011 | Financing: Income Statement

    Results 2011 | Financing 21 Income Statement in € mn 2010 2011 Chg. in % Revenues 1,744.8 2,023.7 +16 Operating EBITDA 1) 210.8 258.6 +23 Operating EBITDA margin 12.1% 12.8% - Depreciation -200.1 -210.1 -5 Operating EBIT 1) 10.7 48.5 >100 Impairment charges to goodwill - -2.6 <-100 One-off effect Br

  12. Slide 12: Results 2011 by Region and Product

    Results 2011 by Region Revenues: € 2,023.7 mn | +16% EBITDA: € 258.6 mn | +23% Investments & North America Others -3% (2%) North America Central-West Investments & 2% (-1%) 7% (8%) Europe Others 18% (17%) -8% (-14%) Central- East Europe Central- Central- 29% (30%) East Europe West Europe 22% (22%) 4

  13. Slide 13: Strong Volume Driven Organic Growth in 2011

    Strong Volume Driven Organic Growth in 2011 2,200 +2% 0% 2,023.7 +14% 2,000 +16% Revenues increased by 16% 1,800 1,744.8  9% organic growth in € mn 1,600  7% consolidation effect (Steinzeug, Tondach) 1,400 1,200 1,000 Revenues Volume Price FX Revenues 2010 Development Development Effect 2011 25 Re

  14. Slide 14: European Markets as Earnings Driver in 2011

    European Markets as Earnings Driver in 2011 300 11.0 -13.2 11.1 258.6 22.7 250 16.2 +23% 210.8 200 in € mn 150 100 50 0 EBITDA Central-East North-West Central-West North Investments EBITDA 2010 1) Europe Europe Europe America & Others 2011 1) 1) Before impairment charges to property, plant and equip

  15. Slide 15: Optimization Costs 2011; Strong Balance Sheet

    Optimization Costs 2011 in € mn 2011 Special write-downs 13 Optimization costs 8 thereof in Q4 7 Total optimization costs 21  5 plants were closed (of which 3 had already been mothballed)  6 plants were mothballed 29 Strong Balance Sheet – Gearing only 18% in € mn 2008 2009 2010 2011 Chg. in % Equ

  16. Slide 16: Stronger Cash Flow from Operating Activities

    Stronger Cash Flow from Operating Activities in € mn 2010 2011 Chg. in € mn Chg. in % Gross cash flow 151.3 204.1 +52.8 +35 Change in working capital 1) 79.1 -24.9 -104.0 <-100 Normal capex -61.7 -102.5 -40.8 +66 Divestments and other 8.1 65.0 +56.9 >100 Free cash flow 176.8 141.7 -35.1 -20 Growth i

  17. Slide 17: Total Investments and Net Debt Development 2011

    Total Investments of approx. € 160 mn in € mn 2010 2011 Chg. in % Normal capex 61.7 102.5 +66 in % of depreciation 31% 49% - Growth investments 88.1 56.3 -36 Total investments 149.8 158.8 +6 Normal capex 2011 contains: ~ € 57 mn maintenance ~ € 45 mn for investments in new technology and new product

  18. Slide 18: Bond 2012 and Liquidity Term Structure

    Bond 2012 of € 200 mn  Successful issue of a € 200 mn senior bond in January 2012 - Maximum volume of € 200 mn taken due to high demand - Annual coupon of 5.0% - 3.5 years term  Proceeds from bond issue to be used primarily for maintaining and strengthening capital structure Pursuing our strategy

  19. Slide 19: Hybrid Bond Represents 100% Equity; Headroom in Covenants

    Hybrid Bond Represents 100% Equity  Classification as equity - Hybrid bond represents 100% equity under IFRS - There are no events (except a change in IFRS requirements) that could lead to the conversion of the hybrid bond into debt  Repayment of the hybrid bond - Perpetual term, i.e. no repayment

  20. Slide 20: Share Buy-back Finalized on November 17, 2011

    Share Buy-back Finalized on November 17, 2011 Key facts share buy-back Start and duration from August 22 through November 17, 2011 Volume 2,350,535 shares in % of share capital 2% Average purchase price € 8.83 Capital requirement € 20.8 mn Purpose:  Using shares as currency for transactions, if ava

  21. Slide 21: Central-East Europe

    Central-East Europe (1) Results 2011 Central-East Europe (in € mn) 1) 2010 2011 Chg. in % Revenues 2011 EBITDA 2011 Revenues 531.7 587.6 +11 Operating EBITDA 2) 86.3 102.5 +19 29% 40% Operating EBITDA margin 16.2% 17.4% - EBIT 20.8 24.8 +20 1) East European holding companies are reported under the I

  22. Slide 22: North-West Europe

    North-West Europe (1) Results 2011 53% North-West Europe (in € mn) 1) 2010 2011 Chg. in % Revenues 2011 EBITDA 2011 Revenues 721.4 808.1 +12 Operating EBITDA 2) 113.5 136.2 +20 Operating EBITDA margin 15.7% 16.9% - 40% 53% EBIT 44.9 66.8 +49 1) The cross border trading activities of the Netherlands

  23. Slide 23: Central-West Europe; North America

    Central-West Europe Results 2011 Central-West Europe (in € mn) 1) 2010 2011 Chg. in % Revenues 2011 EBITDA 2011 Revenues 379.4 435.1 +15 18% Operating EBITDA 2) 35.2 46.2 +31 22% Operating EBITDA margin 9.3% 10.6% - EBIT 1.1 16.5 >100 1) The cross border trading activities of the Netherlands and Ger

  24. Slide 24: Investments & Other; Summary 2011

    Investments & Other Results 2011 Investments & Other (in € mn) 1) 2010 2011 Chg. in % Revenues 2011 EBITDA 2011 Revenues 12.6 111.4 >100 2% -8% Operating EBITDA 2) -28.7 -17.7 +38 Operating EBITDA margin <-100% -15.9% - EBIT -33.9 3.0 >100 1) Revenues excl. Group eliminations; East European holding

  25. Slide 25: Outlook 2012

    Outlook 2012 49 Assumptions for Wienerberger Group 2012  Limited visibility  Targets for 2012: - Cost inflation covered by price adjustments - Normal capex ~ 60% of depreciation - Increase in revenues and earnings and outperform markets - Profit from further organic growth of the company - Product

  26. Slide 26: Assumptions for Wienerberger Group 2012

    Assumptions for Wienerberger Group 2012 Region CEE NWE CWE NA Volumes ? stable slightly up ? Prices Adjustments in line with cost inflation Wienerberger Input costs Slight cost inflation (3-4%) Energy Assuming STABLE production volumes:  already more than 50% hedged for 2012  ~ € 15 mn higher pric

  27. Slide 27: Dividend for FY 2011; Mid-term Targets

    Dividend for FY 2011  Dividend of 12 Eurocents proposed to the Supervisory Board  Dividend reflects the increase in earnings  Future dividend policy depends on further business development 53 Mid-term Targets  Focus on operational excellence / cost management  Profit from further organic growth

  28. Slide 28: Thank you for your attention! Appendix

    Thank you for your attention! 55 Appendix: Wienerberger Group Wienerberger 2011 at a Glance | Results 2011 & Financing | Wienerberger Markets 2011 | Strategy | Outlook 2012 | Dividend 56

  29. Slide 29: Wienerberger Brick Markets in Europe

    Pipe systems & Pavers (Surface) will become an important product group of Wienerberger in terms of revenues Facing bricks Pipe systems & Clay blocks (Wall) Roof tiles (Roof) (Facade) Pavers (Surface) No. 1 in Europe, Co-Leader in No. 1 worldwide No. 1 in Europe 1) Leading positions in Europe USA 1)

  30. Slide 30: Wienerberger Roofing Markets in Europe

    Wienerberger Roofing Markets in Europe 1 Europe (total): No. 1 1 in clay roof tiles 1 1  Major competitors: Monier (formerly 3 2 Lafarge Roofing), Etex, Imerys, Terreal 1 11 2  Some privately owned mid-size competitors in Germany 1 1 1 1 1 11 2 4 1 1 1 1 1 1 11 1 1 1 1 11 1 4 1 Wienerberger plants

  31. Slide 31: The NEW Wienerberger – Leading Positions in Core Business

    The NEW Wienerberger – Leading Positions in Core Business Pipe systems Wall systems – Roof systems – #1 worldwide #1 in Europe1) Surface – Leader in Europe Facade – #1 in Europe; Co-leader in the USA 1) Concerning clay roof tiles 61 Wienerberger Strategy – System Solutions  Dryfix  KoraTech® + Kor

  32. Slide 32: Environmental Challenges – Energy Performance of Buildings Directive

    Environmental Challenges – Energy Performance of Buildings Directive  Obligatory: „Nearly Zero Energy“ buildings - By end of 2018 valid for all new public buildings - By end of 2020 valid for all new buildings Buildings with a high total energy performance / efficiency and a significant share of re

  33. Slide 33: Competitive Advantage of Wienerberger in the Brick Industry

    Competitive Advantage of Wienerberger in the Brick Industry Cost  Leadership in technology Leadership  Economies of scale  Fast adaptation of fixed cost base to market conditions Know-How  Transfer of engineering know-how across operations Transfer  Leverage innovation process and subsequent ro

  34. Slide 34: Switzerland – Healthy Economy; Italy

    Switzerland – Healthy Economy 5% % GDP % CPI % Unemployment 4%  Limited impact of and quick recovery 3% 2% from 2008/09 crisis, which was less 1% severe than in other European countries 0% -1% - Strong appreciation of Swiss Franc -2% 2008 2009 2010 2011e 2012e 2013e 2014e starts slowing down export

  35. Slide 35: Belgium – Slight Improvement in 2011; Netherlands

    Belgium – Slight Improvement in 2011 10% % GDP % CPI % Unemployment  Wienerberger estimations for 2011: 8% 6% - Market: new residential construction with 4% sound development in the first half 2% followed by slight weakening in the 0% second half | renovation strong -2% -4% 2008 2009 2010 2011e 201

  36. Slide 36: France – Sound Development in 2011; UK

    France – Sound Development in 2011 12% % GDP % CPI % Unemployment  Wienerberger estimations for 2011: 10% 8% - Market: ~ 350,000 housing starts | sound 6% renovation - Operations: revenue and earnings growth 4% 2% 0% -2%  Sound market development despite -4% 2008 2009 2010 2011e 2012e 2013e 2014e

  37. Slide 37: Poland – Wienerberger Outperforms Market; Czech Republic

    Poland – Wienerberger Outperforms Market 12% % GDP % CPI % Unemployment 10% 8%  Wienerberger estimations 2011: 6% 4% - Market: single family homes grew 2% moderately while the multi-family home 0% segment declined | sound renovation -2% -4% 2008 2009 2010 2011e 2012e 2013e 2014e - Operations: outpe

  38. Slide 38: Hungary – Decline from Low Level; Romania, Bulgaria

    Hungary – Decline from Low Level 14% % GDP % CPI % Unemployment 12% 10%  Wienerberger estimations 2011: 8% 6% - Market: Housing starts declined by 4% about 25% 2% 0% -2% - Operations: Wienerberger outperformed -4% 2008 2009 2010 2011e 2012e 2013e 2014e the market and could increase EBITDA -6%  201

  39. Slide 39: Russia – Economic Data; India – Key Facts and Strategy

    Russia – Economic Data  Moscow Area - Strong demand for building materials - Housing construction expected to double by 2020 - Gaining importance of energy efficiency  Tatarstan - Demand for housing is expected to remain high in connection with Universiade 2013 and FIFA World Cup 2018, but: - Unce

  40. Slide 40: USA – Economic Data

    USA – Economic Data 12% % GDP % CPI % Unemployment  Market 2011: SFH segment weaker 10% 8% than MFH | SFH trend to smaller homes 6% designed for the needs of first time 4% 2% buyers 0% -2%  Wienerberger 2011: - Decline in volumes and negative -4% 2007 2008 2009 2010 2011e 2012e 2013e -6% EBITDA fo

Wienerberger — FY2011 Earnings Presentation on 6ix