Wienerberger AG · VIE:WIE
Wienerberger — H1 2009 Earnings Presentation
24 slides from Wienerberger's earnings presentation, Aug 18, 2009
Slide 1: Press Conference: Results for the First Six Months of 2009
Press Conference Highlights | Results for the First Six Months of 2009 | Wienerberger Regions at a Glance | Strategy & Outlook 2009 Vienna, August 18, 2009 1 Agenda Highlights Heimo Scheuch, CEO Results for the First Willy Van Riet, CFO Six Months of 2009 Wienerberger Regions Johann Windisch, COO at
Slide 2: Highlights
Highlights New residential construction considerably weaker in H1 - Central-East Europe under downward pressure - Major Western European markets at low level - Further decline in North America Fast implementation of restructuring measures Cash preservation and balance sheet strengthening Strong posi
Slide 3: Key Figures
Key Figures in € mn 1-6/2008 1-6/2009 Chg. in % Revenues 1,263.6 898.1 -29 Operating EBITDA 1) 235.6 100.6 -57 Operating EBITDA margin 18.6% 11.2% - Operating EBIT 1) 136.0 7.8 -94 Profit after tax 2) 98.6 -204.0 <-100 Net debt 3) 871.0 978.6 +12 CAPEX 253.8 91.0 -64 Free cash flow 30.2 7.9 -74 1) B
Slide 4: Capacity Adjustments
1. Capacity Adjustments (1) In H1 2009, 18 plants closed / mothballed For 2009, estimated shutdown / mothballing of 26 plants Plant closures Mothballings Total Region 2008 2009e 2008 2009e Central-East Europe 7 7 2 9 25 North-West Europe 6 5 5 - 16 Central-West Europe 5 3 - - 8 North America 2 2 - -
Slide 5: Overview of Cost Savings and Working Capital Management
2. Overview of Cost Savings Starting in 2008 Savings per year (in € mn) 2008 2009e (H1 | H2e) 2010e Measures 2008 150 (90 | 60) 1) 150 Measures 2009 +25 Cost savings (gross) 150 (90 | 60) 175 Restructuring costs -34 -40 (-19 | -21) (cash) Cost savings (net) -34 110 (71 | 39) 175 1) Includes savings
Slide 6: Reduction of Investments
4. Reduction of Investments in € mn 30/06/2008 30/06/2009 Chg. in % Maintenance capex 49.9 30.7 -38 in % of depreciation 50% 33% - Growth investments 203.9 60.3 -70 Total investments 253.8 91.0 -64 Target 2009: € 180 mn (€ 80 mn maintenance | € 100 mn growth) 11 Results for the First Six Months of 2
Slide 7: Results for the First Six Months of 2009 by Region
Results For The First Six Months of 2009 by Region Revenues: € 898.1 mn | -29% EBITDA 1): € 100.6 mn | -57% Central-West North America North America Investments & Other Europe -8% 8% -1% 11% Investments & Other Central-East -12% Europe Central-West 31% Central-East Europe 20% Europe 48% North-West E
Slide 8: Change in EBITDA by Region and Income Statement
Change in EBITDA by Region H1 2009 vs. H1 2008 236 -xx -57% -87 +2 101 -28 -7 -15 EBITDA 1) Central-East North-West Central-West North Investments EBITDA 1) H1/2008 Europe Europe Europe America & Other H1/2009 Note: in € mn Central-East Europe North-West Europe Central-West Europe North America 1) B
Slide 9: Non-Recurring Expenses and Balance Sheet Indicators
Non-Recurring Expenses Restructuring costs and impairment of assets: € 87.2 mn - € 18.7 mn cash out Restructuring - € 40.4 mn special write-downs program - € 28.1 mn impairment of assets Impairment charges to goodwill in € mn 1-6/2009 Central-East Europe 12.0 North-West Europe 33.5 Central-West Euro
Slide 10: Cash Flow Statement and Development of Net Debt
Cash Flow Statement in € mn 1-6/2008 1-6/2009 Chg. in € mn Chg. in % Gross cash flow 204.3 49.8 -154.5 -76 Change in working capital 1) -122.3 -27.1 +95.2 +78 Maintenance capex -49.9 -30.7 +19.2 +38 Divestments and other -1.9 15.9 +17.8 >100 Free cash flow 30.2 7.9 -22.3 -74 1) Adjusted for changes
Slide 11: Refinancing Secured Until End of 2011
Refinancing Secured Until End of 2011 Refinancing Funds requirements available until 2011 500 € 490 mn Maturities for € 223 mn Undrawn extended in April 2009 400 € 340 mn committed credit lines - € 18 mn due in 2011 in € mn 300 2010 / 2011 € 290 mn € 150 mn - € 205 mn due in 2013 200 Reduction of re
Slide 12: Wienerberger Regions at a Glance
Wienerberger Regions at a Glance Johann Windisch, COO Overview of Market Developments in H1 2009 Central-East Europe - Substantial weakening of new residential construction since Q4 2008 | only completion of projects already in progress | lower average prices | FX effect North-West Europe - UK very
Slide 13: Central-East Europe
Central-East Europe (1) Share of Group Share of Group Central-East Europe (in € mn) 1-6/2008 1-6/2009 Chg. in % revenues 1-6/2009 EBITDA 1-6/2009 Revenues 454.7 275.5 -39 Operating EBITDA 1) 135.4 48.5 -64 31% 48% Operating EBITDA margin 29.8% 17.6% - Operating EBIT 1) 101.3 17.3 -83 1) Before restr
Slide 14: North-West Europe
North-West Europe (1) Share of Group Share of Group North-West Europe (in € mn) 1-6/2008 1-6/2009 Chg. in % revenues 1-6/2009 EBITDA 1-6/2009 Revenues 491.8 380.2 -23 Operating EBITDA 1) 89.7 61.4 -32 Operating EBITDA margin 18.2% 16.1% - 61% 42% Operating EBIT 1) 54.7 28.6 -48 1) Before restructuri
Slide 15: Central-West Europe and North America
Central-West Europe Share of Group Share of Group Central-West Europe (in € mn) 1-6/2008 1-6/2009 Chg. in % revenues 1-6/2009 EBITDA 1-6/2009 Revenues 221.8 182.4 -18 11% Operating EBITDA 1) 18.0 11.4 -37 20% Operating EBITDA margin 8.1% 6.3% - Operating EBIT 1) -1.1 -5.9 <-100 1) Before restructuri
Slide 16: Strategy and Outlook 2009: Cash Preservation Instead of Growth
Strategy and Outlook 2009 Adjustment of Wienerberger Strategy – Cash Preservation Instead of Growth Expansion Cash preservation Investments Capacity adjustments New plant construction Market focus Growth up to 2008 Consolidation 2009+ as basis for growth after the economic crisis 32
Slide 17: Action Plan 2009 and Outlook 2009
Fully Focused on Implementation of the Action Plan 2009 1. Capacity adjustments - Estimated shutdown / mothballing of 26 plants - Extended standstills throughout entire plant network 2. Reduction of fixed costs - Realization of € 150 mn in cost savings 3. Active working capital management - Reductio
Slide 18: Well-Positioned for a Full Start After the Crisis
Wienerberger is Well-Positioned for a Full Start After the Crisis Fast reaction to changes in operating environment Balanced country portfolio Innovative product range We are ready for new growth after the crisis! 35 Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 1
Slide 19: Appendix: Wienerberger Group Today
Appendix: Wienerberger Group Today Duties of the Managing Board | Wienerberger at a Glance | Shareholder Structure 37 Duties of the Managing Board as of August 1, 2009 H. Scheuch J. Windisch W. Van Riet CEO COO CFO General European Corp. Corp. Int. Corp. Group Risk Secretary Affairs Development Engi
Slide 20: Wienerberger at a Glance
Wienerberger at a Glance International building materials group - 26 countries + 5 export markets - 236 plants in Europe and North America Founded 1819 in Vienna Focus on ceramic based building materials - Clay blocks (wall) - Facing bricks (facade) - Clay roof tiles (roof) - Pavers (surface) Listed
Slide 21: Explanation of Margins per Product Group
Explanation of Margins per Product Group Wall: operating EBITDA margin: 17% Facade: operating EBITDA margin: 6% High margins due to Low margins due to Strong market positions High proportion of trading revenue Latest technology Locally specific customer requirements (greenfield projects) Strong mark
Slide 22: Wienerberger Brick Markets in Europe
Wienerberger Brick Markets in Europe 1 1 Europe (total): No. 1 1 1 1 1 Clay Blocks: 1 2 - No competing international groups 1 - Mainly family businesses (local producers) - Wienerberger the only multinational player 33 1 1 11 1 Facing Bricks: 1 1 1 1 - Family businesses (local producers) as 1 main c
Slide 23: Brick Markets in North America and Wienerberger Strengths
Wienerberger Brick Markets in North America USA: 5 major players totaling ~65% of market share Quebec Main competitors: Ontario Boral, ACME, HeidelbergCement and 1 CRH Midwest Northeast 20% 5 Canada: Market entry 2 3 7% 1 in 2007 West 3 6 2 3 3% 3 1 2 2 1 1 1 1 1 1 6 4 5 Southeast Southwest 6 4 50%
Slide 24: Wienerberger Shareholder Structure
Wienerberger Shareholder Structure by country Switzerland Other 2% 5% France 4% 100% free float Northern Europe USA 4% 33% One major institutional investor disclosed: Germany 4% - Dodge & Cox, USA, owns more than 10% of the shares Austria 21% Canada 12% UK & Ireland 15% Status shareholder structure: