Wienerberger Ag · VIE:WIE
Wienerberger — FY2013 Earnings Presentation
28 slides from Wienerberger's earnings presentation, Feb 27, 2014
Slide 1: Investor and Analyst Presentation Financial Results 2013
Investor and Analyst Presentation Financial Results 2013 February 27, 2014 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 rel
Slide 2: Highlights 2013
Highlights 2013 Sound revenue and earnings growth despite difficult market environment and unfavorable weather at the beginning of the year Successfully met EBITDA goal: € 267 mn Execution of restructuring program and sale of non-operating assets according to plan € 63 mn reduction of net de
Slide 3: Diverse Market Impact on Business Units
Diverse Market Impact on Business Units Volumes Prices Clay Building Materials WE Clay Building Materials EE North America Pipelife Steinzeug-Keramo Semmelrock 5 Successful Diversification Strategy Yields Stabilization of Earnings Development CBM Europe P&P Europe North America 8% Revenues 2013 53%
Slide 4: Sound Increase in Revenues and Earnings
Sound Increase in Revenues and Earnings Revenue: Operating EBITDA 1): € 2,662.9 mn € 266.5 mn (2012: € 2,355.5 mn | +13%) (2012: € 245.5 mn | +9%) Net Debt: Total Investments: € 538.9 mn € 106.7 mn (31/12/12: € 602.0 mn | -10%) (2012: € 268.7 mn | -60%) 1) Adjusted for non-recurring income and expen
Slide 5: Strong Q4 in CBME Division Cannot Compensate H1 Decline
Strong Q4 in CBME Division Cannot Compensate H1 Decline H2 shows volume growth in all product groups and an increase in operating EBITDA Moderate volume decline in 2013 due to unfavorable weather conditions at the beginning of the year and declines in several core markets Prices are nearly sta
Slide 6: Results 2013 by Segment
Results 2013 by Segment Revenues: € 2,662.9 mn | +13% EBITDA 1): € 266.5 mn | +9% Holding & Holding & Others North America Others North America 0% 5% -7% 8% Clay Building Materials WE Clay Building 41% Pipes & Pavers Materials WE Pipes & Pavers EE 13% 49% EE 17% Pipes & Pavers WE 25% Pipes & Pavers
Slide 7: Ceramic Pipes from Steinzeug-Keramo are Cradle to Cradle Certified
Wienerberger Products and Projects 13 Ceramic Pipes from Steinzeug-Keramo are Cradle to Cradle® Certified Our ceramic pipes meet demanding ecological criteria of the Cradle to Cradle® certification STEINZEUG-KERAMO. Ceramic pipes INSPIRED BY NATURE. - Are made from natural raw materials only - A
Slide 8: New Sewage System in Mikolow (PL)
New Sewage System in Mikolow (PL) Polish city Mikolow trusts in Steinzeug-Keramo products In total 175 km of ceramic pipes were laid to build a new sewage system Main decision criteria for the local authority were the durability and the resistance to chemical and physical impacts 15 Semmelrock
Slide 9: ARTE Pavers Combine Tradition and Modern Design
ARTE Pavers Combine Tradition and Modern Design Békéscsaba, Hungary ARTE Pavers ARTE Pavers create an impressive surface image - no matter if used to resemble traditional style or if used as contrast to modern architecture. At first glance the surface is made up of many individual stones. Indeed it
Slide 10: Investment in Production Capacity for Insulation Filled Clay Blocks
Wienerberger Invests in Production Capacity for Insulation Filled Clay Blocks in Austria Investment in a production line for the top product Porotherm W.i. in Haiding, Austria Stone wool is integrated in the clay block as insulation material Construction time and project costs are reduced as n
Slide 11: Office Building Without Heating System
Office Building Without Heating System Office Building without heating system or air conditioning in Lustenau, Austria People, lamps and computers are the only heat sources Massive brick walls made from Porotherm N+F, high ceilings and deep embrasures maintain room temperatures of 22-26°C 21 F
Slide 12: Modern Flat Roof with Koramic Roof Tiles
Modern Flat Roof with Koramic Roof Tiles Flat roofs with a pitch as low as 10° can be realized with clay roof tiles In Oldenburg (GER) the large format clay roof tile Alegra 8 from Koramic was used for this project The Sturmfix-system guarantees a long life time despite the harsh weather of No
Slide 13: Consolidation Effect Outweighs Organic Revenue Decline in 2013
Results 2013 25 Consolidation Effect Outweighs Organic Revenue Decline in 2013 2,800 +15% 2,662.9 2,600 Revenues increased by 13% +13% 2,400 2,355.5 0% 1% organic volume -1% decline -1% in € mn 2,200 Stable average prices 2,000 -1% FX effect 1,800 15% revenue change related to Pipelife 1,600
Slide 14: Stable Prices in Challenging Environment 2013
Stable Prices in Challenging Environment 2013 Clay Building Materials Europe - Western Europe: Price increases in line with cost inflation despite challenging market conditions - Eastern Europe: Continued price pressure for building materials as a result of demanding market conditions especially i
Slide 15: Sale of Non-operating Assets
Sale of Non-operating Assets Sale of non-operating assets according to plan 2013 non-operating assets worth € 22.2 mn were sold (Cash in 2013: € 13.6 mn) Correspondingly € 11.9 mn are reported in other operating income Target: Proceeds of ~ € 100 mn in the period 2012-2016 29 Income Statement
Slide 16: EBITDA Change by Segment 2012 vs. 2013
EBITDA1) Change by Segment 2012 vs. 2013 280 +3.4 270 +11.8 266.5 -3.1 260 +21.1 250 245.5 in € mn 240 -5.4 230 -6.8 220 210 EBITDA CBM CBM P&P P&P North Holding & EBITDA 2012 WE EE WE EE America Others 2013 1) Adjusted for non-recurring income and expenses 31 Loss After Tax 2013: € 7.8 mn in € mn 2
Slide 17: Tondach Gleinstätten
Tondach Gleinstätten Producer of clay roof tiles in Eastern Europe 15 plants in 11 countries 50% Wienerberger | 50% family-owned Consolidated at equity in financial results Revenue 2013: ~ € 155 mn Earnings burdened by difficult market environment in Eastern Europe, structural adjustment
Slide 18: Cash Flow Development
Cash Flow Development in € mn 2012 2013 Chg. in € mn Chg. in % Gross cash flow 127.0 164.6 +37.6 +30 Change in working capital 1) 102.5 26.2 -76.3 -74 Normal capex -105.3 -106.0 -0.7 -1 Divestments and other 39.4 8.0 -31.4 -80 Free cash flow 163.6 92.9 -70.7 -43 Growth capex -163.4 -0.7 +162.7 +100
Slide 19: Total Investments 2013: € 106.7 mn
Total Investments 2013: € 106.7 mn in € mn 2012 2013 Chg. in % Normal capex 105.3 106.0 +1 in % of depreciation 54% 54% - Growth capex 163.4 0.7 -100 thereof Pipelife 146.6 0.0 -100 Total investments 268.7 106.7 -60 Pipelife takeover drives growth capex in 2012 Normal capex remains on previous y
Slide 20: Strong Balance Sheet and Low Gearing Ratio
Strong Balance Sheet and Low Gearing Ratio Chg. in % vs. in € mn 31/12/2012 30/9/2013 31/12/2013 31/12/2012 Equity 1) 2,364 2,267 2,254 -5 Net debt 602 663 539 -10 Equity ratio 57% 53% 54% - Gearing 26% 29% 24% - Changes to net debt: Gross cash flow increased by € 37.6 mn in 2013 Reduction of wo
Slide 21: Treasury Ratios
Treasury Ratios 3) Treasury Ratios 31/12/2012 30/9/2013 31/12/2013 Covenant Net debt / operating EBITDA 1) 2.2 2.6 2.0 <3.50 Operating EBITDA 1) / interest result 2) 5.0 4.5 4.8 >3.75 1) Adjusted for non-recurring income and expenses; Calculated based on 12-month EBITDA 2) Calculated based on 12-mon
Slide 22: Clay Building Materials Western Europe
Clay Building Materials Western Europe Results 2013 Share of Group Ext. Share of Group CBM Western Europe (in € mn) 2012 2013 Chg. in % Revs. 2013 EBITDA 2013 External revenues 1,129.6 1,089.9 -4 Operating EBITDA 1) 136.5 131.1 -4 41% 49% Operating EBITDA margin 12.1% 12.0% - Operating EBIT 1) 31.8
Slide 23: Pipes & Pavers Western Europe
Pipes & Pavers Western Europe Results 2013 Share of Group Ext. Share of Group P&P Western Europe (in € mn) 2012 2013 Chg. in % Revs. 2013 EBITDA 2013 External revenues 392.2 592.8 +51 Operating EBITDA 1) 44.1 65.2 +48 Operating EBITDA margin 11.2% 11.0% - 25% 22% Operating EBIT 1) 27.9 39.3 +40 1) A
Slide 24: North America
North America Results 2013 Share of Group Ext. Share of Group North America (in € mn) 2012 2013 Chg. in % Revs. 2013 EBITDA 2013 External revenues 193.8 224.7 +16 8% 5% Operating EBITDA 1) 9.8 13.2 +35 Operating EBITDA margin 5.1% 5.9% - Operating EBIT 1) -14.7 -9.3 +37 1) Adjusted for non-recurring
Slide 25: Stabilization to Slight Growth of Housing Starts in Europe
Stabilization to Slight Growth of Housing Starts in Europe | Growth in the USA WB management forecast : SFH starts 2014 Mountain Region Midwest +10% -9% Mid-Atlantic +5% +2% -1% -1% 0% SFH +15% 0% -14% -3% -2% +2% +5% Southeast -4% Source: Management expectation (SFH starts) +2% Market growth (>2%)
Slide 26: Clay Building Materials Europe: Outlook 2014
Clay Building Materials Europe: Outlook 2014 Moderate volume growth expected in 2014 | Weak prior year basis in H1 Price increases should cover cost inflation - Expectation: Price increases ~ 1.5% | Cost inflation ~ 2.0% - In Eastern Europe we must wait for the start of the construction season t
Slide 27: Pipes & Pavers Europe: Outlook 2014
Pipes & Pavers Europe: Outlook 2014 Pipelife - Stable development of European core markets - 2013 record result in project business is unlikely to be matched in 2014 - Slight earnings decline possible Steinzeug-Keramo - Slight revenue growth - Significant earnings growth as non-recurring costs d
Slide 28: Thank you for your attention!
We Have a Clear Strategy Ready for the future 1 Broadening of Core Business 2 Operational Excellence 3 Product Innovation & System Supplier 4 Portfolio Optimization 5 Clear Strategy for All Business Units 55 Thank you for your attention! Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna