Wienerberger Ag · VIE:WIE
Wienerberger — Shareholder Meeting (May 2024)
62 slides from Wienerberger's shareholder meeting presentation, May 7, 2024
Slide 1: We care for a better tomorrow.
Capital Value-creating Allocation acquisitions Policy 2023/2024 wienerberger – We care Sustainability – an attractive investment for a better an integral part of our strate tomorrow. 2024 2023 & targets 2026
Slide 2: Performance and Market environment 2023
Performance Market environment 2023
Slide 3: Market environment
Market environment 2023 WITH CHALLENGING ECONOMIC CONDITIONS ... Inflation >10% –20% Geopolitical Market decline instability
Slide 4: Performance
Performance ... BUT WIENERBERGER WAS ABLE TO MASTER THEM SUCCESSFULLY!
Slide 5: Wienerberger successfully faced the weak market environment
Performance WIENERBERGER SUCCESSFULLY FACED THE WEAK MARKET ENVIRONMENT Cost savings Efficiency enhancements through self-help program Strong pricing Securing the strong margin Innovation rate of 32%
Slide 6: Revenues by region
Performance REVENUES BY REGION
Slide 7: Revenues by product
Performance REVENUES BY PRODUCT Wall Pipes 17% 34% 30% Facade 16% Roof
Slide 8: Operating EBITDA by region
Performance OPERATING EBITDA BY REGION
Slide 9: Operating EBITDA by product
Performance OPERATING EBITDA BY PRODUCT
Slide 10: Successful navigation through 2023
Performance SUCCESSFUL NAVIGATION THROUGH 2023 Cost Self-help Liquidity EBITDA margin management program protection
Slide 11: Cost management
Cost management 81 Fixed costs in production Overhead costs € mn Capacity adjustments Cost savings
Slide 12: Successful navigation through 2023
Performance SUCCESSFUL NAVIGATION THROUGH 2023 Cost Self-help Liquidity EBITDA margin management program protection
Slide 13: Self-help program
Self-help program 46 Optimized manufacturing processes and product quality Efficient sales € mn Supply Chain Management and General administration Efficiency enhancement through self-help program
Slide 14: Successful navigation through 2023
Performance SUCCESSFUL NAVIGATION THROUGH 2023 Cost Self-help Liquidity EBITDA margin management program protection
Slide 15: EBITDA margin
EBITDA margin 19 % EBITDA margin Strong pricing disciplin Ongoing optimization of cost structure
Slide 16: Successful navigation through 2023
Performance SUCCESSFUL NAVIGATION THROUGH 2023 Cost Self-help Liquidity EBITDA margin management program protection
Slide 17: Liquidity protection
Liquidity protection -32 Investments adjusted to lower € mn production capacity utilization Investment adjustments
Slide 18: Conservative financing policy secures solid balance sheet
Financing and capital structure CONSERVATIVE FINANCING POLICY SECURES SOLID BALANCE SHEET Strong capital Solid liquidity Conservative Securing of base reserves financial leverage investment grade rating ~50% € ~1.4 bn 1.5x Baa3 Moody‘s Equity ratio 31.12.2023 Net debt/operating EBITDA 31.12.2023 Rat
Slide 19: Key financing highlights
Financing and capital structure KEY FINANCING HIGHLIGHTS Upgrade to investment grade rating € 350 by Moody’s Long-term financing in the amount of mn Sustainability-Linked € 600 mn Bond successfully placed
Slide 20: Wienerberger – an attractive investment
Value creation for shareholders wienerberger – wienerberger today an attractive investment
Slide 21: Wienerberger today: more resilient, more innovative, more efficient
wienerberger today WIENERBERGER TODAY: MORE RESILIENT, MORE INNOVATIVE, MORE EFFICIENT
Slide 22: Wienerberger today: more resilient, more innovative, more efficient
wienerberger today WIENERBERGER TODAY: MORE RESILIENT, MORE INNOVATIVE, MORE EFFICIENT
Slide 23: Wienerberger today: more resilient, more innovative, more efficient
wienerberger today WIENERBERGER TODAY: MORE RESILIENT, MORE INNOVATIVE, MORE EFFICIENT
Slide 24: Strong results thanks to the successful transformation of our business model
Value-creation for shareholders STRONG RESULTS THANKS TO THE SUCCESSFUL TRANSFORMATION OF OUR BUSINESS MODEL
Slide 25: Value creation for our shareholders 2010–2023
Value-creation for shareholders VALUE CREATION FOR OUR SHAREHOLDERS 2010–2023
Slide 26: Capital Allocation Policy
Capital Allocation Policy
Slide 27: Strong financial basis for the further development of Wienerberger
Capital Allocation Policy STRONG FINANCIAL BASIS FOR THE FURTHER DEVELOPMENT OF WIENERBERGER HIGH FREE CASH FLOW FINANCIAL DISCIPLINE STRONG CASH CONVERSION € 1.3 bn Net debt 1.5–2x operating EBITDA 84% 2021–2023 at year-end 2021–2023 STRONG FINANCIAL BASIS
Slide 28: Strategic capital allocation policy: return of capital to shareholders
Capital Allocation Policy STRATEGIC CAPITAL ALLOCATION POLICY FOR THE IMPLEMENTATION OF THE CORPORATE VISION Return of capital to our shareholders › Dividend policy 20–40% of the free cash flow generated returned to the shareholders › Share buyback programs 1–2% of the share capital annually, depend
Slide 29: Strategic capital allocation policy: investments and acquisitions
Capital Allocation Policy STRATEGIC CAPITAL ALLOCATION POLICY FOR THE IMPLEMENTATION OF THE CORPORATE VISION Maintenance investments Growth investments Acquisitions
Slide 30: Our capital allocation policy
Capital Allocation Policy OUR CAPITAL ALLOCATION POLICY
Slide 31: Value-creating acquisitions 2023/2024
Value-creating acquisitions 2023/2024
Slide 32: ~40 value-creating acquisitions over the last 10 years
Value-creating acquisitions ~40 value-creating acquisitions support the transformation process over the last 10 years
Slide 33: Terreal acquisition successfully closed
Terreal Terreal acquisition successfully closed Strengthened position as leading European pitched roof expert for innovative roof and solar solutions Significant expansion in the refurbishment and renovation market with great growth potential Addition of roof accessories and solar solutions to the e
Slide 34: Terreal: ideal addition to production network in Germany
Terreal Kirchkimmen Ideal addition to Bramsche Wefensleben Reetz the existing production Steinheim Rietberg Buchwäldchen Höngeda Guttau network in Germany Wassenberg Boellstedt Grossengottern Gölitz Eisenberg Zwickau Bad Neustadt Eisenberg/Pfalz Malsch Bogen Neuburg Straubing Location Wertingen wien
Slide 35: Terreal: ideal addition to production network in France and Catalonia
Terreal Flines-lèz-Râches GSEi (Le Petit-Quevilly) Seltz Bavent Betschdorf Les Mureaux Achenheim Pontigny Durtal Ideal addition to Lantenne-Vertière Roumazières Chagny the existing production Chasseneuil Pont-de-Vaux network in France and Achard (Genay) Montpon Location Catalonia wienerberger Locati
Slide 36: Terreal: ideal addition to production network in Italy
Terreal Feltre Gattinara Noale Valenza Bubano Ideal addition to Castiglion Fiorentino the existing production Terni network in Italy Location wienerberger Location Terreal
Slide 37: Terreal: ideal addition to production network in North America
Terreal Cambridge Ideal addition to Corunna Burlington Aldershot the existing production Lexington Watsontown network in North America Terre Haute Denver Cincinnati Stanton Roanoke Piney Flats Union City Siloam Springs Spring City Moncure Muskogee Salisbury Rome Columbia Mineral Wells East Dallas Co
Slide 38: Successful contribution from Terreal to Wienerberger
Terreal SUCCESSFUL CONTRIBUTION FROM TERREAL TO WIENERBERGER +28 +3.000 Employees Production sites
Slide 39: Success factor Terreal: value-enhancing M&A
Value-creating acquisitions 2023/2024 SUCCESS FACTOR TERREAL Value-enhancing M&A ~5x EV/EBITDA multiple 3 years after integration and taking synergy effects into account
Slide 40: Attractive deal pipeline in renovation and water management
Value-creating acquisitions 2023/2024 Attractive deal pipeline in renovation and water management in Europe and the USA.
Slide 41: New business as potential for success
Value-creating acquisitions 2023/2024 NEW BUSINESS AS POTENTIAL FOR SUCCESS Expansion of existing system solutions for Energy & water with digital services Intelligent monitoring & protection of natural resources Disruptive technologies outside the core business Development of new markets and custom
Slide 42: New Business: Robotics, eFriends, Wideco
New Business Robotics eFriends Wideco
Slide 43: New Business: Green Build video robot
New Business: Green Build VIDEO ROBOTER
Slide 44: Russia exit: our portfolio in focus
Russia exit OUR PORTFOLIO IN FOCUS Successful sale of the entire Russian business in compliance with all legal requirements to a Russian investor who will continue the business 2 production sites 2023 revenues less than 1% of total revenues
Slide 45: Sustainability – an integral part of our strategy
Sustainability program 2023 Sustainability program Strategy 2026 Employees Sustainability in the strategy in focus Sustainability – an integral part of our strategy
Slide 46: Our strategy
Our strategy Sustainability Finance Industry strategy strategy
Slide 47: Sustainability – an integral part of the strategy
Sustainability in the strategy SUSTAINABILITY – AN INTEGRAL PART OF THE STRATEGY through Operational Excellence Improvement through of processes through innovation M&A Organic External growth growth ALL OUR ACTIVITIES ARE SUBJECT TO CLEAR SUSTAINABILITY GOALS
Slide 48: Sustainability program 2023
Sustainability program 2023 Decarboniza tion and energy mix Biodiversity All targets achieved: Circular economy Sustainability program 2023 successfully completed Training & Result 2023: Development Diversity –15.6% CO₂-emissions Social Commitment compared to 2020
Slide 49: Sustainability program 2026
Sustainability program 2026 Decarboniza tion and energy mix Biodiversity Even more Circular Health & economy Safety ambitious goals: Revenue from products contributing Our sustainability to net zero building Waste program 2026 Water management management Training & Target 2026: Diversity, Diversit
Slide 50: We are part of the solution
Sustainability program 2026 We are part of the solution Less CO₂ with climate-neutral buildings and resource-saving use of water 70% today 75% by 2026 Increase in sales of building products, that contribute to zero-energy buildings 35 mn m³ Wasser of water obtained through our products, retained, sa
Slide 51: Employees in focus
Employees in focus >20,000 employees in 28 countries 80 nationalities 30 languages spoken >34 % of employees are women 225,000 safety training sessions per year 919,538 shares for employees
Slide 52: Our strategy
Our strategy Sustainability Finance Industry strategy strategy
Slide 53: Finance strategy
Finance strategy Net debt Out- at performance 1.5–2x of our markets Capital 18–20% Allocation EBITDA margin Policy
Slide 54: Industry strategy
Industry strategy Renovation and refurbishment Water and energy transportation New construction Innovative and ecological solutions for the following areas
Slide 55: 2024 & targets 2026
2024 & targets 2026
Slide 56: Despite market decline, guidance confirmed
2024 Despite market decline, guidance confirmed.
Slide 57: Market estimate vs. EBITDA development
2024 MARKET ESTIMATE VS. EBITDA DEVELOPMENT
Slide 58: Market level in Q1 2024
2024 MARKET LEVEL IN Q1 2024 New build: first signs of recovery in Europe Renovation: stable Infrastructure: on a solid level Market in Q1 2024 significantly below Q1 2023
Slide 59: 2024 – Q1: all factors considered in guidance
2024 – Q1 Lower market level vs. Q1 2023 Effect operating EBITDA: ~€ -40 mn All factors have Standstills in Q1 2024 already been Effect operating EBITDA: ~€ -50 mn considered in the No “one-time” effect out of inventory revaluation guidance for 2024 compared to last year Effect operating EBITDA: ~€
Slide 60: Guidance for 2024 confirmed
2024 GUIDANCE FOR 2024 CONFIRMED Assumptions for end market scenario unchanged Pricing policy as foreseen FY 2024 guidance of operating EBITDA Self-help contribution according to plan Cost management savings higher € 860–890 mn Terreal Successful closing by the end of February CONFIRMED Integreation
Slide 61: Our path to 2026
Our path to 2026 € 811 mn Sustainability strategy € >1.2 bn Operating Financial Industrial Operating EBITDA 2023 strategy strategy EBITDA 2026e
Slide 62: Our targets for 2026
Our targets for 2026 Market recovery from 72% in 2023 to 86% in 2026, based on normalized margins Operating EBITDA 2026 Value-creating acquisitions >1.2 Organic Growth, Fokus on innovation, cost savings and € based on payback of growth CAPEX, innovation and efficiency enhancement system solutions Id