Wienerberger Ag · VIE:WIE
Wienerberger — Shareholder Meeting (May 2019)
89 slides from Wienerberger's shareholder meeting presentation, May 9, 2019
Slide 1: 150th Annual General Meeting Wienerberger AG
th 150 Annual General Meeting WIENERBERGER AG
Slide 2: Our success story began 1819 – our people
OUR SUCCESS STORY BEGAN 1819 ON OUR KEY SUCCESS FACTOR HAS NOT A HILL SOUTH OF VIENNA CHANGED IN THE LAST 200 YEARS OUR PEOPLE
Slide 3: Our key success factor: our people
EVER SINCE OUR HISTORY IS DEEPLY MOST OF SUCCESS OUR KEY THE MAGNIFICENT BUILDINGS FACTOR HAS NOT … INTERTWINED WITH THE HISTORY OF VIENNA CHANGED IN THE LAST 200 YEARS OUR PEOPLE … STILL SHAPE VIENNAS CITYSCAPE
Slide 4: Our key success factor: our people
MOST OF SUCCESS OUR KEY THE MAGNIFICENT BUILDINGS FACTOR HAS NOT … CHANGED IN THE LAST 200 YEARS OUR PEOPLE … STILL SHAPE VIENNA’S CITYSCAPE
Slide 5: We celebrate our 150th anniversary of stock exchange listing
WE CELEBRATE OUR 150TH ANNIVERSARY OF OUR STOCK EXCHANGE LISTING … … THE VIENNA STOCK EXCHANGE WAS BUILT WITH OUR BRICKS
Slide 6: If the useful life of products spans centuries
IF THE USEFUL LIFE OF PRODUCTS SPANS CENTURIES … … THIS MEANS YOU TAKE GREAT RESPONSIBILITY FOR GENERATIONS
Slide 7: And taking responsibility
AND TAKING RESPONSIBILITY … … HAS SHAPED THE WAY WE DO BUSINESS SINCE DAY ONE
Slide 8: In the 19th century for the realization of architectural landmarks
IN THE 19TH CENTURY FOR THE REALIZATION OF ARCHITECTURAL LANDMARKS …
Slide 9: Social benefits and affordable homes for our workers
… OR WHEN INTRODUCING SOCIAL BENEFITS AND BUILDING AFFORDABLE HOMES FOR OUR WORKERS
Slide 10: Wienerberger is built on a strong foundation
… OR WHEN INTRODUCING SOCIAL BENEFITS AND WIENERBERGER IS BUILT ON A STRONG FOUNDATION BUILDING AFFORDABLE HOMES FOR OUR WORKERS CREATING BUILDING FOR VALUE PEOPLE 150 YEARS AS STOCK LISTED COMPANY SUSTAINABLE DRIVING GROWTH INNOVATION
Slide 11: Today we focus on a circular economy
TODAY WE FOCUS ON… Recycled material in plastic pipes 75.2 67.2 65.4 64.6 in kg / ton 58.9 A CIRCULAR ECONOMY 2014 2015 2016 2017 2018
Slide 12: We focus on employee safety
WE FOCUS ON … Accident frequency rate * 12 10 8 7 5 5 EMPLOYEE SAFETY © Uwe Strasser 2013 2014 2015 2016 2017 2018 * Number of occupational accidents / number of hours worked x 1,000,000
Slide 13: E4 housing concept for zero energy homes
WE FOCUS ON … E4 HOUSING CONCEPT FOR ZERO ENERGY HOMES
Slide 14: Supply security with smart infrastructure
WE FOCUS ON … SUPPLY SECURITY WITH SMART INFRASTRUCTURE
Slide 15: Research & development for innovative solutions and services
WE FOCUS ON … Share of revenues generated by innovative products 30% 29% 28% 27% 25% 24% RESEARCH & DEVELOPMENT FOR INNOVATIVE SOLUTIONS AND SERVICES 2013 2014 2015 2016 2017 2018
Slide 16: The digitalization of our value chain
AND WE FOCUS ON … THE DIGITALIZATION OF OUR VALUE CHAIN © Uwe Strasser
Slide 17: Since 1819 it is our mission
BECAUSE SINCE 1819 IT IS OUR MISSION… … TO IMPROVE PEOPLE’S QUALITY OF LIFE BY PROVIDING OUTSTANDING, SUSTAINABLE BUILDING MATERIAL AND INFRASTRUCTURE SOLUTIONS. © Florian Kuettler
Slide 18: Our mission: building for people
SINCE 1819FOR BUILDING GERMANY IT ISPEOPLE OUR MISSION… - HABITAT FOR HUMANITY NO MATTER IF IN THE UK … … TO IMPROVE PEOPLE’S QUALITY OF LIFE BY PROVIDING OUTSTANDING, SUSTAINABLE BUILDING MATERIAL … FOR MULTI-FAMILY AND INFRASTRUCTURE SOLUTIONS. HOUSING PROJECTS © Florian Kuettler
Slide 19: Our mission: specialized pipe solutions
SINCE 1819 IT … IN MALAYSIA IS OUR MISSION… … TO IMPROVE PEOPLE’S QUALITY OF LIFE BY PROVIDING OUTSTANDING, SUSTAINABLE…BUILDING WITH LLLD MATERIAL PIPES FOR AND INFRASTRUCTURE SPECIALIZEDSOLUTIONS. SOLUTIONS © Florian Kuettler
Slide 20: In Lithuania for single family housing
IN LITHUANIA … … FOR SINGLE FAMILY HOUSING
Slide 21: In Germany for commercial buildings
SINCE 1819 IT … IN GERMANY IS OUR MISSION… … TO IMPROVE PEOPLE’S QUALITY OF LIFE BY PROVIDING OUTSTANDING, SUSTAINABLE BUILDING MATERIAL AND … FOR COMMERCIAL INFRASTRUCTURE BUILDINGS SOLUTIONS. © Florian Kuettler
Slide 22: Or in Sweden: underground high-voltage lines
SINCE 1819FOR GERMANY BUILDING IT ISPEOPLE OUR MISSION… - HABITAT FOR HUMANITY OR IN SWEDEN … Bildqualität … TO IMPROVE PEOPLE’S QUALITY OF LIFE BY PROVIDING OUTSTANDING, SUSTAINABLE … WITH BUILDING UNDERGROUND MATERIAL HIGH-VOLTAGE AND INFRASTRUCTURE LINES SOLUTIONS. FOR HIGHEST SUPPLY SECURITY © F
Slide 23: A leading international solutions provider for buildings and infrastructure
TODAY WIENERBERGER IS A LEADING INTERNATIONAL SOLUTIONS PROVIDER FOR BUILDINGS AND INFRASTRUCTURE DRIVING DIGITAL SOLUTION CHANGE IN PROVIDER OUR INDUSTRY HIGHLY SKILLED EMPLOYEES STRONG PARTNER FOR INNOVATION OUR LEADER CUSTOMERS
Slide 24: Highlights 2018
HIGHLIGHTS 2018 © Pipelife
Slide 25: Strong earnings growth
STRONG EARNINGS GROWTH Top line increases ahead of market growth Revenues € 3.3 bn | +6% EBITDA LFL in line with top end of the guidance EBITDA LFL € 469 mn | +15% Strong bottom line growth Net profit € 133 mn | +8% Strong free cashflow generation © Ralf Pieper Free cash flow € 237 mn | +55%
Slide 26: Successful delivery on strategic goals
SUCCESSFUL DELIVERY ON STRATEGIC GOALS Fast Forward 2020 fully on track € 20 mn savings delivered on schedule Significant step-up in M&A Building on excellent track record of value-creating bolt-on acquisitions Share of innovative products 29% Sale of non-core assets © Ralf Pieper Total value realiz
Slide 27: Consistent execution of our strategy drives performance
WAS UNS ANTREIBT – DIGITALISIERUNG CONSISTENT EXECUTION OF OUR STRATEGY DRIVES PERFORMANCE +6% Ø revenue growth 2012-2018 +13% Ø EBITDA growth 2012-2018 443 3,305 397 2,431 2,356 217 2008 2012 2018 2008 2012 2018 ROCE at 10-year high: 7.5% +6% Ø Free cash flow growth 2012-2018 7.5% 237 6.2% 195 164
Slide 28: Excellent performance for our shareholders
EXCELLENT PERFORMANCE FOR OUR SHAREHOLDERS 275% Total Shareholder Return 225% 220% 175% 125% 106% 75% 25% (25%) Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Wienerberger Stoxx Europe 600 Construction & Materials Source: Bloomberg, as of 26/04/2019 TSR calculated since 27/12/2012, assuming cash d
Slide 29: Strong dividend growth
STRONG DIVIDEND GROWTH 0.50 Dividend increases 0.30 by 70% year-on-year in € 0.27 0.20 0.15 0.12 0.12 2012 2013 2014 2015 2016 2017 2018
Slide 30: Share buybacks successfully completed
SHARE BUYBACKS SUCCESSFULLY COMPLETED › Buyback of 2% of shares issued › Total capital returned to shareholders increased to € 80.6 mn
Slide 31: We share Wienerberger
WE SHARE WIENERBERGER Successful launch of the Wienerberger Participation Program › Participation rate: 28% › Amount invested: € 1.9 mn › Austria piloted the rollout › On track for Group wide rollout
Slide 32: Summary of 2018 achievements
SUMMARY OF 2018 ACHIEVEMENTS Record sales EBITDA LFL in line with top end of guidance Fast Forward 2020 fully on track € 20 mn savings delivered on schedule Dividend increased by 70% year-on-year Strong free cash flow generation Consistent delivery on all our goals
Slide 33: Wienerberger is in a transformation process
WIENERBERGER IS IN A TRANSFORMATION PROCESS WE ARE BUILDING THE SERVICE LEVEL OF VALUE CREATOIN COMPONENTS OF OUR BUSINESS Data management systems WE ARE DEVELOPING INTO A PROVIDER OF SYSTEM SOLUTIONS One-stop-shop | Plug & Play | Prefabrication >> WE STARTED AS A PRODUCER OF HIGH PERFORMING PRODUCT
Slide 34: We have built strong operating platforms
WE HAVE BUILT STRONG OPERATING PLATFORMS Wienerberger Building Wienerberger Piping North America Solutions Solutions Solutions for walls, Plastic and ceramic Facade solutions facades, roofs and paving piping solutions Plastic piping solutions
Slide 35: Wienerberger Building Solutions
WIENERBERGER BUILDING SOLUTIONS Where we are today Strong market coverage across Europe › Supplier of innovative building solutions › Leader in the digital transformation of Total Revenues ~ € 2.0 bn 1 GREAT BRITAIN 16% 2 GERMANY 11% the building materials industry 9 1 3 NETHERLANDS 11% › Leading ma
Slide 36: Our products already build a mid-sized town every year
OUR PRODUCTS ALREADY BUILD A MID-SIZED TOWN EVERY YEAR … 180,000 290,000 2,400 Houses Roofs Soccer fields built tiled paved
Slide 37: A clear strategy for the future
… AND WE HAVE A CLEAR STRATEGY FOR THE FUTURE 1 2 3 CONSOLIDATION AND NEW ENHANCE OUR DEVELOP NEW MATERIALS SYSTEM SOLUTIONS BUSINESS DEVELOP PROVIDE THE ENTIRE DEVELOP NEW INTEGRATED BUILDING ENVELOPE BUSINESS MODELS SYSTEM SOLUTIONS WITH A FOCUS ON AND DRIVE WHICH ARE EASY TO CERAMICS AND NEW DIGI
Slide 38: Let us build a house together
LET US BUILD A HOUSE TOGETHER – ASSUMED TOTAL COSTS OF EUR 300,000 Total construction € 300,000 costs 38
Slide 39: Share of building envelope costs
Total construction € 300,000 costs Share of building € 100,000 envelope Wall € 4,500 Roof € 1,800 Facade € 4,500 Pavers € 2,000 Current share of € 12,800 <5% Wienerberger Note: Figures depicted are only indicative
Slide 40: We strive to grow the share in the value chain
WE STRIVE TO GROW THE SHARE IN THE VALUE CHAIN All for roof Robotics Service Home4life New Website ✓ Prefab ✓ Bricks & Dryfix ✓ Solution Accessories ✓ Roof solutions ✓ Interbran Concrete Pavers ✓ ✓ … and we are evaluating new opportunities Existing Products Adjacent Products New Products ✓ Pursued O
Slide 41: Strong operating platforms
STRONG OPERATING PLATFORMS Wienerberger Building Wienerberger Piping North America Solutions Solutions Solutions for walls, Plastic and ceramic Facade solutions facades, roofs and paving piping solutions Plastic piping solutions
Slide 42: Wienerberger Piping Solutions
WIENERBERGER PIPING SOLUTIONS Where we are today Strong market coverage across Europe › Broad portfolio of end markets › Significant exposure to counter-cyclical Total Revenues ~ € 1.0 bn 1 AUSTRIA 13% 2 NORWAY 13% infrastructure spending 1 3 BELGIUM 10% › Track record of bolt-on acquisitions to 8 2
Slide 43: Three strategic areas of focus
THREE STRATEGIC AREAS OF FOCUS 1 2 3 FURTHER DEVELOP FOCUS ON SMART BECOME STRONG VALUE-ADDING SOLUTIONS IN PARTNER FOR SOLUTIONS IN WATER AND AGRICULTURE THE INHOUSE ENERGY INDUSTRY WITH SEGMENT MANAGEMENT DRAINAGE AND IRRIGATION BENEFIT FROM MEGATRENDS LACK OF SKILLED LABOR | TRANSFORMATION TOWARD
Slide 44: Overarching value creation
OVERARCHING VALUE CREATION LEVEL OF VALUE CREATOIN SMART SOLUTIONS MONITORING & CONTROL FULL SYSTEMS PREFABRICATED PLUG & PLAY SOLUTIONS >> PRODUCTS PIPES & FITTINGS >> PROXIMITY TO CUSTOMER © Pipelife
Slide 45: Prefabricated plug & play solutions
PREFABRICATED PLUG & PLAY SOLUTIONS Pre-fabricated electrical power supply › Offering customized pre-cut wires and conduits to address lack of skilled labor on construction sites › Benefits › Reducing installation time on site › Reducing scrap rate and installation errors › Enabling higher value cre
Slide 46: Smart solutions and monitoring
SMART SOLUTIONS AND MONITORING Monitoring system for pumping stations › Web based remote monitoring and controlling system for pumping stations › System enables › Status monitoring › Analysis of historical data › Steering of pumping station © Pipelife
Slide 47: Strong operating platforms
STRONG OPERATING PLATFORMS Wienerberger Building Wienerberger Piping North America Solutions Solutions Solutions for walls, Plastic and ceramic Facade solutions facades, roofs and paving piping solutions Plastic piping solutions
Slide 48: North America
NORTH AMERICA Where we are today Broad coverage of core brick markets Total Revenues ~ € 0.3 bn › Leading market positions in key US brick markets East of the Mississippi CANADA 9% › Successful track record of value creating bolt-on acquisitions › Highly profitable positions in Canadian facade marke
Slide 49: Our strategy for North America
OUR STRATEGY FOR NORTH AMERICA 1 2 3 ORGANIC GROWTH ACTIVE MARKET PIPES CONSOLIDATION DRIVE MARKET FURTHER BUILD PENETRATION IN COMPETITIVE STRATEGIC GROWTH FURTHER BOLT-ON GROWTH PLATFORM MARKETS GROWTH IN IN PIPES VIA SUPPORTED BY STRATEGIC GROWTH OPTIMIZATION OF DIGITAL AGENDA SEGMENTS AND EXISTI
Slide 50: Organic growth
ORGANIC GROWTH Strengthen position as the preferred solutions provider in our core markets › Targeted growth areas particularly in commercial brick segment and innovative thin brick solutions › Growth in US and Canadian new-built and renovation markets › Organic growth supported by › Enhanced hybrid
Slide 51: Active market consolidation
ACTIVE MARKET CONSOLIDATION Columbus Brick and Selective bolt-on growth and Watsontown Brick expansion regional expansion in strategic growth markets › Acquisitions highlight strategic priorities: › Columbus Brick bolsters position in more than half of top 10 US brick markets › Watsontown expands ou
Slide 52: Piping solutions
PIPING SOLUTIONS Strengthen growth platform in pipes through optimization of existing business and targeted acquisitions › Continuous optimization measures in distribution and production › Actively drive substitution towards plastic pipes in core water management and high-pressure oil and gas soluti
Slide 53: We execute a clear and forward-looking strategy
WE EXECUTE A CLEAR AND FORWARD-LOOKING STRATEGY Leading solutions provider Shaping the digital transformation of our industry Growing our share in the value chain Building strong partnerships with our customers Continuously optimizing our business processes Realizing growth opportunities through M&A
Slide 54: Organic Growth
Operational Organic Growth Growth projects Excellence
Slide 55: Innovative solutions: prefabricated brick walls
INNOVATIVE SOLUTIONS PREFABRICATED BRICK WALLS
Slide 56: Innovative solutions: smart pipes
INNOVATIVE SOLUTIONS SMART PIPES © Pipelife
Slide 57: Innovative solutions: limiting overflows with Raineo
INNOVATIVE SOLUTIONS LIMITING OVERFLOWS WITH RAINEO® © Pipelife
Slide 58: Digitalization: virtual reality glasses
DIGITALIZATION VIRTUAL REALITY GLASSES © Wienerberger
Slide 59: Market proximity: All4Roof digital roofing platform
MARKET PROXIMITY MARKETPROXIMITY MARKET PROXIMITY ALL4ROOF DIGITAL ROOFING PLATFORM ROOF4ALL ROOF4ALL © Wienerberger
Slide 60: Organic growth drivers
ORGANIC GROWTH DRIVERS We service our customers with innovative solutions We introduce new methods for applying our products We use our market proximity to exchange leads across business units We grow the service share of our business
Slide 61: Growth Projects
Operational Organic Growth Growth projects Excellence
Slide 62: Value-creating growth projects 2016-2019
VALUE-CREATING GROWTH PROJECTS 2016-2019 Ø EV / EBITDA multiple › Pre-synergies 7.2x › Post-synergies 5.2x Wienerberger Building Solutions Wienerberger Piping Solutions North America
Slide 63: Acquisition of BPD Group
WIENERBERGER BUILDING SOLUTIONS ACQUISITION OF BPD GROUP Wienerberger is moving towards an integrated supplier of full-range roofing and building envelope solutions Manufacturing Presence BPD Group › Leading producer of building envelope products, including construction membranes, roof underlays and
Slide 64: Acquisitions of Preflex Group & Reddy
WIENERBERGER PIPING SOLUTIONS: ACQUISITIONS OF PREFLEX GROUP & REDDY Two strategic and highly complementary acquisitions illustrate our goal of becoming a full provider of electrical installation systems Manufacturing Presence Preflex Reddy Preflex Group › Leading specialist of prewired electrical c
Slide 65: Acquisition of Watsontown Brick
NORTH AMERICA ACQUISITION OF WATSONTOWN BRICK Highlights our North American strategy of active market consolidation in attractive product segments and locations Watsontown Brick Manufacturing Presence › Highly profitable facing brick and paver manufacturer based in Pennsylvania › Modern and highly e
Slide 66: Strategic partnership with Interbran
INNOVATIVE MATERIALS STRATEGIC PARTNERSHIP WITH INTERBRAN We are committed to exploring new and innovative building materials in attractive growth markets Manufacturing Presence Interbran Group › R&D start-up developing mineral, non-combustible insulation materials › Superior thermal insulation prop
Slide 67: Growth projects support the transformation process
GROWTH PROJECTS SUPPORT THE TRANSFORMATION PROCESS We will use our financial flexibility to drive growth and develop our business We grow our share in the value chain We drive the market consolidation We add innovative solutions We explore new business opportunities
Slide 68: Operational Excellence
Operational Organic Growth Growth projects Excellence
Slide 69: Performance enhancement program Fast Forward 2020
OPERATIONAL EXCELLENCE PERFORMANCE ENHANCEMENT PROGRAM FAST FORWARD 2020 CULTURAL SUSTAINABLE CHANGE PROFITABILITY SUMMARY OF IMPROVEMENT HUNDREDS OF PROJECTS LONG-TERM OPERATIONAL PERFORMANCE EXCELLENCE DRIVER IS PART OF OUR DNA
Slide 70: Why we will deliver on our promises
WHY WE WILL DELIVER ON OUR PROMISES › Right people and organizational set-up in place › Developed a new framework to ensure on time project delivery › Focus on additional sustainable investments with fast payback › Everyone across the organization is fully committed
Slide 71: Fast Forward 2020 dedicated workstreams
FAST FORWARD 2020 STRIVING FOR EXCELLENCE ACROSS DEDICATED WORKSTREAMS
Slide 72: Raising our plants to world class manufacturing
RAISING OUR PLANTS TO WORLD CLASS MANUFACTURING INCREASED OUTPUT IMPROVED PRODUCT QUALITY THROUGH AUTOMATION
Slide 73: Striving for excellence across dedicated workstreams
STRIVING FOR EXCELLENCE ACROSS DEDICATED WORKSTREAMS ✓
Slide 74: Closer to the customer with commercial excellence
CLOSER TO THE CUSTOMER WITH COMMERCIAL EXCELLENCE PRODUCT PORTFOLIO OPTIMIZATION INNOVATIVE SOLUTIONS & DIGITAL SERVICES CROSS SELLING AND UPSELLING OPPORTUNITIES
Slide 75: Striving for excellence across dedicated workstreams
STRIVING FOR EXCELLENCE ACROSS DEDICATED WORKSTREAMS ✓ ✓
Slide 76: Using the power of the group in procurement
WE ARE USING THE POWER OF THE GROUP IN PROCUREMENT PROCUREMENT VOLUME ENERGY € 1.6 bn p.a. RAW MATERIALS PACKAGING TRADED GOODS INDIRECT MATERIALS SUPPORT SERVICES LOGISTICS
Slide 77: Striving for excellence across dedicated workstreams
STRIVING FOR EXCELLENCE ACROSS DEDICATED WORKSTREAMS ✓ ✓ ✓
Slide 78: Moving to digital stockyards in supply chain management
MOVING TO DIGITAL STOCKYARDS IN SUPPLY CHAIN MANAGEMENT ACCELERATED ORDER PROCESSING REDUCED FORKLIFT MOVEMENTS ENHANCED SERVICE LEVEL FOR CUSTOMERS
Slide 79: Striving for excellence across dedicated workstreams
STRIVING FOR EXCELLENCE ACROSS DEDICATED WORKSTREAMS ✓ ✓ ✓ ✓
Slide 80: Shared services across business units
SHARED SERVICES ACROSS BUSINESS UNITS REGIONAL ENHANCEMENT OF SHARED FINANCIAL AND IT SERVICES SUPPORTED BY ROBOTIC PROCESS AUTOMATION
Slide 81: Striving for excellence across dedicated workstreams
STRIVING FOR EXCELLENCE ACROSS DEDICATED WORKSTREAMS ✓ ✓ ✓ ✓ ✓
Slide 82: Turnaround cases deliver expected improvement
TURNAROUND CASES DELIVER EXPECTED IMPROVEMENT Successful implementation Streamlining and repositioning of our businesses Sustainable improvement of our earnings power Strengthening of our market positions
Slide 83: We are fully on track
p= WE ARE FULLY ON TRACK | FULLY ON TRACK > 60 120 lenerberg [
Slide 84: Outlook 2019
© Helene Høyer Mikkelsen OUTLOOK 2019
Slide 85: Growth drivers for 2019
GROWTH DRIVERS FOR 2019 1 2 3 4 Continued delivery Disciplined M&A Robust market Solutions offering of Fast Forward to strengthen environment across the portfolio 2020 program core platforms
Slide 86: Record result in Q1 2019
RECORD RESULT IN Q1 2019 Robust top line growth Revenues € 777 mn | +15% Significant EBITDA LFL improvement EBITDA LFL 1) € 109 mn | +89% Highly confident to deliver on our 2019 guidance 1) incl. IFRS 16
Slide 87: Highlights Q1 2019
HIGHLIGHTS Q1 2019 Consistent implementation of our value- enhancing growth strategy Sound market environment confirms our expectations Q1 growth supported by favorable weather © Jack Hobhouse Fast Forward program is full on track
Slide 88: Guidance 2019
2019 GUIDANCE 2019 € 560 - 580 mn EBITDA LFL 2018 € 469 mn EBITDA LFL 2017 € 415 mn EBITDA LFL Operational Organic Growth Growth projects Excellence
Slide 89: wienerberger. geared for growth.
wienerberger. geared for growth. Together we build the future.