Wienerberger Ag · VIE:WIE
Wienerberger — Q3 2021 Earnings Presentation
49 slides from Wienerberger's earnings presentation, Nov 9, 2021
Slide 1: Wienerberger Q3 Results
Wienerberger Q3 Results November 9th, 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: 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 4: Q3 2021 results at new record highs
Q3 2021 - Highlights Q3 2021 (7-9/2021) results at new record highs External revenues EBITDA LFL 1) € 1,027.5 mn € 200.7 mn (7-9 / 2020: € 903.6 mn | +14%) (7-9 / 2020: € 174.1 mn | +15%) Net result EBITDA LFL margin 1) € 114.7 mn 20.2% (7-9 / 2020: € 72.8 mn | +58%) (7-9 / 2020: 19.5% | +0.7ppt) 1)
Slide 5: Strong organic growth due to smart system solutions and operational excellence
Q3 2021 - Highlights Strong organic growth due to smart system solutions and operational excellence External revenues 7-9/2021 7-9/2020 Chg. in % in € mn High demand for our sustainable & innovative solutions continued in Wienerberger Building Solutions 603.5 567.3 +6 summer months Wienerberger Pipi
Slide 6: Market environment Q3
WBS - GWQ Non-Residential in Bredfort, UK (c) Wienerberger Ltd Market environment Q3
Slide 7: Robust activity in the new build market in all of our key markets
Market environment YTD Robust activity in the new build market in all of our key markets › Building permits continue to be high in many markets even though pre-crisis levels have not been reached everywhere yet Western Europe Strong new construction activity in Western Europe, especially in the UK a
Slide 8: Renovation activities remain at a high level in our key markets
Market environment YTD Renovation activities remain at a high level in our key markets › Demand in the renovation sector is strong in all our key markets, leading to higher sales volumes especially in the roof segment Western Europe High demand for renovation solutions in Western Europe. Especially
Slide 9: Robust infrastructure markets for piping division
Market environment YTD Robust infrastructure markets for piping division › Performance was characterized by higher volumes in all markets › Overall market environment impacted by raw material price increases and limited availability Western Europe Strong demand for infrastructure projects, coupled w
Slide 10: Strong demand levels through all segments in our North American business
Market environment YTD Strong demand levels through all segments in our North American business › Strong demand in new build which was shaped by a surge in housing starts, reaching its highest level for 15 years in March in the U.S. › High demand for infrastructure solutions supported by public prog
Slide 11: Wienerberger performance and focus areas
Wienerberger performance and focus areas WBS - New Construction Apartment and Commercial space in Leuven, Belgium (c) Wienerberger nv sa, Architect A2O Hasselt, Brussel, Bruxelles
Slide 12: Overall good performance above pre-crisis levels
1-9 2021 – Performance Overview Overall good performance above pre-crisis levels Revenues › Best YTD Q3 results ever despite certain markets still under pre-crisis levels 2,897 +9% › Strong developments in all our business areas, 2,656 +14% in € mn 2,547 even outperforming pre-crisis levels › Contin
Slide 13: Excellent performance and margin development across all business units
1-9 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 E
Slide 14: Strategic drivers for growth
Investments in Growth Strategic drivers for growth Wienerberger continues to focus on organic growth by investing in the future Operational Innovation & Sustainability Excellence Digitalization & ESG › Operational excellence and › Transform into a full system › Existing and new technologies to conti
Slide 15: New innovative technologies in our plants increase automation and improve safety at workplace
Deep dive: Operational Excellence New innovative technologies in our plants increase automation and improve safety at workplace Roof tile plant in Kanjiza, Serbia - Automated loading and unloading as well as quality assurance › Replacing repetitive and physically demanding tasks › Increased safety s
Slide 16: Driving value creation through selective M&A
Deep dive: M&A Driving value creation through selective M&A 2 Acquisition of Meridian brick 1) A new leader for masonry solutions and 1 potential to further strengthen our position in the North American markets 3 1 Acquisition of FloPlast and Cork Plastics 2) 2 Build on strong positions in WBS and W
Slide 17: Significant step for future growth
Acquisition Meridian Brick Significant step for future growth Wienerberger successfully closed the strategically compelling and financially highly attractive acquisition of Meridian Brick A new leader for masonry solutions in key regions Leveraging strong position to drive share of North America
Slide 18: Combined business as excellent platform for growth
Acquisition Meridian Brick Combined business as excellent platform for growth Outperformance Canada Leading position for the of the market Housing starts combined business in the Canada CAGR 10-20’ Ontario Market 9% p.a. 1,380 Region US West US West US East 587 Market entry in Texas and Oklahoma w
Slide 19: Strategic acquisition with compelling valuation
Acquisition Meridian Brick Strategic acquisition with compelling valuation › Final cash purchase price* of $ 230 mn Deal Summary $ mn › Management stands by its target to generate Net cash purchase price* 230 EBITDA of > $ 120 mn in year 3 post transaction, due to stronger than expected organic grow
Slide 20: A perfect strategic fit: From Rain to Drain
Acquisition of FloPlast and Cork Plastics A perfect strategic fit: “From Rain to Drain” › FloPlast and Cork Plastics have a strong foothold in the UK and Ireland with a well established product portfolio › More than 90% of revenue in the less cyclical renovation segment › Large exposure to the fast
Slide 21: Highly value generating acquisition enlarges our footprint in UK and Ireland
Acquisition of FloPlast and Cork Plastics Highly value generating acquisition enlarges our footprint in UK and Ireland € ~100 mn in 2021 (combined sales of FloPlast and REVENUES Cork Plastics) PROFITABILITY Clearly margin accretive (>20% EBITDA margin) Attractive synergies and cross-selling SYNERGIE
Slide 22: Wienerberger is already ahead of plan to meet its ESG targets 2023
Wienerberger is already ahead of plan to meet its ESG targets 2023 Decarbonization Circular Economy Biodiversity Promising decrease in CO2 Ongoing initiatives and R&D Implementation of biodiversity emissions across the entire projects such as EcoCorr put us projects well on track with portfolio well
Slide 23: Examples of success stories in decarbonization
Decarbonization Introducing two examples of success stories in our efforts for decarbonization & the fight against climate change © Preflexibel N.V. > ~ 150 tons less CO2 p.a. thanks to Reddy's > ~ 3.100 tons less CO2 p.a. through brick frog energy-efficient production optimization in the UK > Innov
Slide 24: Biodiversity Action Plan to get everyone on board
Biodiversity Biodiversity Action Plan to get everyone on board › Including all occupied land makes us a pioneer in the industry globally › Biodiversity Action Plans lead to measurable increase of fauna and flora local ecosystems › Involvement and engagement of employees, local organizations and stak
Slide 25: We set our focus on people
We set our focus on people People 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 support our employees and stakeholders in every way possible wh
Slide 26: Wienerberger's Code of Conduct published
We set our focus on people Wienerberger’s Code of Conduct published Binding guideline setting clear and uniform rules for employees, business partners and suppliers Promotes common understanding of required behavior and compliance with high standards of ethics committing to integrity in dealing
Slide 27: Improving people's quality of life for generations
Our vision Improving people’s quality of life for generations By consequently following our strategic pillars and by focusing on people… … we actively take responsibility for our environment and society and ensure that future 1 generations have the same opportunities as we have today … we build a pl
Slide 28: Financial Highlights Q3 2021
Financial Highlights Q3 2021 WPS - Pipelife-Pre-Insulated-Pipes-South-Pole (c) Norwegian Polar Institute
Slide 29: Right measures set reaching new all time high results
Right measures set reaching new all time high results Record margin development driven by excellent procurement initiatives and top-line growth Strong free cashflow generation supported by operational performance and also by disciplined cost management Strong balance sheet and solid leverage ratio a
Slide 30: YTD record results and strong cash flow generation
Financial Highlights YTD record results and strong cash flow generation; solid balance sheet lays the ground for further growth Revenues EBITDA LFL 1) € 2.90 bn € 509.1 mn (1-9 2020: € 2.55 bn | ∆: 14%) (1-9 2020: € 428.2 mn | ∆: 19%) Net Debt / EBITDA Free cash flow 1.6x € 236.4 mn (30.09.2020: 1.2
Slide 31: Excellent operational performance translates to strong profit generation
Income Statement Excellent operational performance translates to strong profit generation in € mn 1-9/2021 1-9/2020 Chg. in % Revenues 2,896.5 2,546.8 14 EBITDA LFL 509.1 428.2 19 EBITDA 510.1 433.2 18 Operating EBIT 323.3 245.3 32 Impairment charges to assets 0.0 -22.5 >100 Impairment charges to go
Slide 32: Strong performance with double digit EBITDA growth
EBITDA Strong performance with double digit EBITDA growth EBITDA Development in € mn EBITDA adjustments in € mn 1-9/2021 1-9/2020 Reported LFL EBITDA reported 510.1 433.2 FX 3.3 - +18% +19% Consolidation -5.8 -2.5 510 509 Sale of assets 1) -9.7 -8.4 433 428 Structural adjustments 2) 11.2 6,1 Total a
Slide 33: Strong margins in all our business units
EBITDA Strong margins in all our business units › Continuous strong profitability in all our business EBITDA LFL & EBITDA LFL margin development in € mn units exceeding previous years performances. +15% › All inflationary cost increases generally offset by 359.0 price increases. 312.3 +17% +61% › Hi
Slide 34: 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 35: 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 36: Self-help program already 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 in € mn € 31 mn EBITDA contribution in YTD 2021 Target for FY 2021: 9 EBITDA contribution of € 40 mn › Major drivers for achievement have been 40
Slide 37: Excellent cash conversion driven by strong operational performance
Cash Flow Statement Excellent cash conversion driven by strong operational performance in € mn 1-9/2021 1-9/2020 Chg. in € mn Chg. in % 1-12/2020 Gross cash flow 409.1 333.1 76.0 23 440.6 Change in working capital -116.9 -65.3 -51.6 -79 64.1 Maintenance capex -63.2 -67.4 4.2 6 -125.9 Divestments and
Slide 38: Strong performance and balance sheet ratios
Balance Sheet Our focus on long-term value creation is reflected in strong performance and balance sheet ratios in € mn 30.09.2021 30.09.2020 Chg. in % 31.12.2020 ROCE 12.7% 9.2% 3.5pt 8.9% Equity 1) 2,034.3 1,926.4 6 1,749.0 Equity ratio 43.6% 43.7% - 40.4% Net debt 991.7 688.8 44 882.1 Net debt /
Slide 39: Net debt development
Net Debt Investments, hybrid buyback and dividend payments supported by strong cash flow generation Net debt development in € mn 1 100 +44% 1 000 81 63 900 800 361 33 600 992 400 517 522 689 200 12 0 Net Debt Gross Working Investments 1) Sale of assets Buybacks and Sale of Leasing & Net Debt 30.09.2
Slide 40: Our leverage target comfortably accommodates our announced M&A transactions
Leverage Our leverage target comfortably accommodates our announced M&A transactions 2.5x maximum leverage ~0.1 0.1 1.8-1.9 0.4 0.2 1.6 0.3 1.5 Net debt / M&A Disposal Operating Net debt / M&A1) Operating Net debt EBITDA of shares deleverage EBITDA deleverage / EBITDA 30.06.2020 30.09.2021 FY 2021e
Slide 41: Outlook 2021
Outlook 2021 WBS - New Construction Little C Apartments, Rotterdam, Netherlands (c) Ossip van Duivenbode
Slide 42: 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 m
Slide 43: 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 43
Slide 44: 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 45: 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 hedging › Main
Slide 46: Capital Markets Day 2021 on November 25th
Capital Markets Day 2021 on November 25th Register here or via investor@Wienerberger.com 46
Slide 47: Appendix
Appendix
Slide 48: Balanced maturity profile and convenient liquidity position
Appendix - Maturity Profile Balanced maturity profile and convenient liquidity position enables financial flexibility Maturity profile as of September 30, 2021 in € mn Σ: € 1,266 mn1) 600 500 400 300 200 100 0 2021 2022 2023 2024 2025 after 2025 › Cash and cash equivalents as of Sept 30, 2021: € 500
Slide 49: wienerberger
wienerberger