Wienerberger AG · VIE:WIE
Wienerberger — H1 2006 Earnings Presentation
32 slides from Wienerberger's earnings presentation, Aug 22, 2006
Slide 1: Sunshine always follows rain
Half year Press Conference First half year of 2006 | Outlook 2006 August 22, 2006 Sunshine always follows rain 1
Slide 2: First Six Months of 2006
First Six Months of 2006 Revenues reach record level Successful continuation of our growth course 3 First Six Months of 2006 Revenue growth by 10% Expansion of market positions - Sales volumes rise 7% - Hollow bricks +11% - Facing bricks +3% - Clay roof tiles +7% Growth program accelerated - A
Slide 3: 1H Results 2006 and Development of Segments
1H Results 2006 Revenues: EBITDA: € 1,011.9 mill. € 196.9 mill. (1-6/05: 922.8 | +10%) (1-6/05: 201.7 | -2%) Profit after tax: Free cash flow: € 81.1mill. € 15.0 mill. (1-6/05: 88.9 | -9%) (1-6/05: -30.2 | >100%) 5 Development of Segments Central-East Europe - Delay in season start caused by stron
Slide 4: Implementation of Strategy
Implementation of Strategy Focus on the optimization and integration of new activities - 10 new plants in recent 12 months (excluding acquisitions) Intensify efforts to use alternative sources of energy Raise selling prices to offset higher costs High growth investments (€ 400 – 550 million
Slide 5: Income Statement
Income Statement in € mill. 1-6/2005 1-6/2006 Chg. in % Revenues 922.8 1,011.9 +10 EBITDA 201.7 196.9 -2 EBITDA margin 21.9% 19.5% - EBIT 123.4 116.8 -5 Financial results -11.7 -12.9 -10 Profit before tax 111.7 103.9 -7 Profit after tax 88.9 81.1 -9 9 Change in Revenues vs. 1-6/2005 Central-East E
Slide 6: Analysis of Group EBITDA
Change of EBITDA vs. 1-6/2005 Central-East Europe € -3.9 mill. Central-West Europe € +1.5 mill. North-West Europe € -1.0 mill. USA € +1.5 mill. Group 1) € -4.8 mill. 1) Including Investments and Other, rounding differences 11 Analysis of Group EBITDA Additional start-up and integration c
Slide 7: Revenues and EBITDA 1-6/2006 by Segment
Revenues 1-6/2006 by Segment Investments and Other 0% USA 17% Central-East Europe 25% € 1,011.9 mill. +10% North-West Europe 39% Central-West Europe 19% 13 EBITDA 1-6/2006 by Segment Investments and Other -4% USA 16% Central-East Europe 27% € 196.9 mill. -2% North-West Europe 42% Central-West Europe
Slide 8: Balance Sheet and Free Cash Flow 1H 2006
Balance Sheet 31.12.2005 30.06.2006 Chg. in % 1) Equity in € mill. 1,483.1 1,455.4 -2 Net debt in € mill. 934.4 1,224.3 +31 Gearing in % 63.0 84.1 - Capital employed in € mill. 2,289.4 2,540.7 +11 Employees 2) 13,327 13,107 -2 1) Including minority interest 2) Average number of employees for the per
Slide 9: Central-East Europe Results 1-6/2006
Central-East Europe Central-East Europe Results 1-6/2006 in € mill. 1-6/2005 1-6/2006 Chg. in % Revenues 223.3 258.0 +16 EBITDA 58.2 54.3 -7 Margin 26.1% 21.0% - EBIT 32.5 28.7 -12 Employees 4,833 4.554 -6 18 9
Slide 10: Central-East Europe Analysis 1-6 | Outlook 2006
Central-East Europe Analysis 1-6 | Outlook 2006 Austria - Acquisition of Eichhorn brick plant (2%)* - Higher costs trigger decline in earnings 06e: - Earnings at prior year level Poland - Positive market, strong demand (5%)* - High sales volumes - Purchase of two brick plants in Krakow 06e: - Ex
Slide 11: Central-East Europe Analysis and New Markets
Central-East Europe Analysis 1-6 | Outlook 2006 Romania - High increase in sales volumes (2%)* - Good price level 06e: - Start-up of hollow brick plant in Sibiu - Continuation of growth trend - New locations and earnings improvement Slovakia - Increase in sales volumes despite market decline (1%
Slide 12: Central-East Europe Analysis and Summary
Central-East Europe Analysis 1-6 | Outlook 2006 Semmelrock pavers - Growth in revenues and earnings (3%)* - Higher sales volumes in Eastern Europe, difficult situation in Austria 06e: - Positive improvement in earnings despite pressure on margin in main markets - Continued expansion in Eastern Eur
Slide 13: Central-West Europe Results 1-6/2006
Central-West Europe Central-West Europe Results 1-6/2006 in € mill. 1-6/2005 1-6/2006 Chg. in % Revenues 180.8 193.8 +7 EBITDA 35.6 37.1 +4 Margin 19.7% 19.1% - EBIT 18.5 20.4 +10 Employees 1,788 1,968 +10 26 13
Slide 14: Central-West Europe Analysis 1-6 | Outlook 2006
Central-West Europe Analysis 1-6 | Outlook 2006 Italy - Slowdown of market (as expected) (4%)* - Decline in sales volumes | prices stable 06e: - Moderate decrease in revenues and earnings from high prior year level Switzerland - Good development in sales volumes of hollow bricks (3%)* - Slight d
Slide 15: Central-West Europe Summary
Central-West Europe Summary Improvement in Germany - Continuation in 2H Slowdown in Italy Switzerland stable on good level 29 North-West Europe 15
Slide 16: North-West Europe Results and Analysis
North-West Europe Results 1-6/2005 in € mill. 1-6/2005 1-6/2006 Chg. in % Revenues 370.1 403.5 +9 EBITDA 83.4 82.4 -1 Margin 22.5% 20.4% - EBIT 56.1 54.1 -4 Employees 4,217 4,188 -1 31 North-West Europe Analysis 1-6 | Outlook 2006 Belgium - Growth in sales volumes in all product segments (11%)* -
Slide 17: North-West Europe Analysis 1-6 | Outlook 2006
North-West Europe Analysis 1-6 | Outlook 2006 France - Growth in sales volumes of all product segments (8%)* - Increased capacity for clay roof tiles 06e: - Ongoing strong demand - Growth in revenues and earnings - Start-up of Angervilliers hollow brick plant UK - Positive development in sales v
Slide 18: North-West Europe Summary
North-West Europe Summary Positive market development in Belgium, Netherlands, France Weak market in UK Growth in sales volumes in all markets and products Increase in earnings despite cost pressure the whole year Acquisition of Baggeridge intended 35 USA 18
Slide 19: USA Analysis and Results 1-6/2006
USA (17%)* Analysis 1-6 | Outlook 2006 Analysis - High level of residential construction at start of 2006 - Increase in interest rates | regional weakness (Detroit,…) - Decline in sales volumes since April due to slowdown - Acquisition of Robinson Brick Company in Denver, Co. Outlook 06e: - 7% d
Slide 20: Outlook 2006 Summary First Half of 2006
Outlook 2006 Summary First Half of 2006 Significant growth in revenues due to higher sales volumes Pressure on margins through higher costs (energy, …) Price increases take effect in Q2 Improvement in earnings delayed 40 20
Slide 21: Outlook 2H 2006 and Growth Projects
Outlook 2H 2006 Optimization and integration of new activities Energy price remain on a high level (+ € 50 mill. expected) - Intensify use of alternative energy sources Further increase of selling prices in some countries Goal: improvement in earnings by 10% remains unchanged 41 Outlook 2006
Slide 22: Acquisition of Robinson Brick Company
Acquisition of Robinson Brick Company Wienerberger acquires Robinson Brick Company (RBC), the number one brick manufacturer in Colorado - Revenues of US$ 87 million in 2005 and EBITDA of US$ 14 million - Operations include: - 1 brick plant in Denver, CO. - 3 concrete block factories in Colorado an
Slide 23: Acquisition of Baggeridge Brick in UK
Acquisition of Baggeridge Brick in UK 4 production plants in the Midlands, 1 in the South of England Revenues: £ 50.7 mill. | EBITDA: £ 9.2 mill. Purchase price ca. £ 89.2 mill. Baggeridge’s management recommends to accept Wienerberger’s cash acquisition offer 45 Wienerberger & Baggeridge Si
Slide 24: Strategic Rationale of Baggeridge; Outlook Summary
Strategic Rationale of Baggeridge Optimal enhancement for Wienerberger UK Becoming a national player ¨ To strengthen number three position in UK Expansion of Wienerberger’s product portfolio (pavers, wall cladding, Blue Bricks) Significant pent-up demand for family housing stock in the long-
Slide 25: The Wienerberger Growth Strategy
The Wienerberger Growth Strategy Sustainable Wienerberger Strategy Continuation of strategy (focus & growth) >100 growth projects implemented during the last 15 years - Extensive experience in acquisitions and integration Opportunities in a difficult business environment - Further market conso
Slide 26: Value-creative Growth Projects
Value-creative Growth Projects Bolt-on projects (high synergies) - Growth projects in existing markets with full organization - New plant construction, capacity extension or small acquisitions - Target multiple in year 3 after capex incl. synergies: 4.5x EBITDA External projects (low synergies)
Slide 27: Wienerberger Expansion Targets (II) and Our Goals
Wienerberger Expansion Targets (II) Russia - Finish plant in Kiprewo - Further locations under preparation USA - Optimization and expansion of factory network (mega plants) - Expansion of direct sales - Evaluation of acquisition opportunities - Growth with the market (demographics) 53 Our Goals
Slide 28: Strengths of the Wienerberger Share
Strengths of the Wienerberger Share Solid Basis Profitability Profitable growth Sustainability and stability (Strong geographic portfolio) 55 Many thanks … …for your interest in Wienerberger! Hans Tschuden, CFO | Wolfgang Reithofer, CEO | Johann Windisch, COO | Heimo Scheuch, COO Wienerberger
Slide 29: Appendix: Wienerberger, a growth company
Appendix: Wienerberger… … a growth company, focused on bricks and roof tiles Bricks: Nr. 1 worldwide Clay roof tiles: Nr. 2 in Europe with plant sites in 24 countries with an international shareholder structure (100% free float) 58 29
Slide 30: Product Groups in Core Business
Product Groups in Core Business 33% of sales 41% of sales Hollow bricks Hollow Bricks 42% of EBITDA 36% of EBITDA Facing bricks Hollow Bricks Roof Tiles 21% of sales 5% of sales Roof Tiles 22% of EBITDA 4% of EBITDA Pavers 59 Wienerberger Brick Markets in Europe 1 1 1 1 Europe (total): Nr. 1 2 3 1 1
Slide 31: Roofing Markets in Europe; Brick Markets in the USA
Wienerberger Roofing Markets in Europe Europe (total): Nr. 2 1 in clay roof tiles 1 2 # Market positions with 1 2 1 clay roof tiles and | or 1 1 concrete roof tiles 4 1 1 1 1 1 1 1 1 1 Wienerberger plants Wienerberger export markets JVs Bramac (50%) and | or Tondach Gleinstätten (25%) 61 Wienerberge
Slide 32: Core Products | Competitive Structure
Core Products | Competitive Structure Hollow Bricks - No competing international groups - Mainly family businesses | smaller groups emerging Facing Bricks - Europe: family businesses, CRH and Hanson (UK) - USA: 5 major players totaling ~ 60% market share (Boral, Wienerberger, ACME, Hanson and CR