Wienerberger AG · VIE:WIE

Wienerberger — H1 2008 Earnings Presentation

25 slides from Wienerberger's earnings presentation, Aug 19, 2008

  1. Slide 1: Half Year Press Conference: Results for the First Six Months of 2008

    Half Year Press Conference Results for the First Six Months of 2008 | Outlook on 2008 Vienna, August 19, 2008 The First Six Months of 2008 Central-East Europe positive US, UK, GER very weak EBITDA decline by 8% 2

  2. Slide 2: The First Six Months of 2008

    The First Six Months of 2008 Revenues: EBITDA 2): € 1,263.6 mill. € 235.6 mill. (1-6/07: 1,227.3 | +3%) (1-6/07: 256.6 | -8%) Adj. Earnings per Share 1): Free cash flow: € 1.04 € 30.2 mill. (1-6/07: € 1.57 | -34%) (1-6/07: 76.0 | -60%) 1) Before amortization of goodwill and adjusted for non-recurrin

  3. Slide 3: Market Environment (II) and First Half-Year at a Glance

    First Six Months 2008 – Market Environment (II) ƒ North-West Europe - Revenue growth based on consolidation of Sandtoft and Baggeridge - Higher margins in Belgium, stable earnings in France - Collapse of new residential construction in UK ƒ North America - Further sharp drop in US housing starts 5 T

  4. Slide 4: Change in EBITDA by Region

    Change in EBITDA by Region 1-6/2008 vs. 1-6/2007 +9 +7 +4 -5 -8% -36 256.6 235.6 EBITDA Central-East North-West Central- North America US, UK, GER EBITDA 1HY 07 Europe Europe West (ex US) organic 1HY 08 (ex UK) Europe (ex GER) Note: in € million 7 Results For The First Six Months of 2008 by Region R

  5. Slide 5: Results For The First Six Months of 2008 by Product

    Results For The First Six Months of 2008 by Product Revenues : € 1,263.6 mill. | +3% EBITDA: € 235.6 mill. | -8% Surface Surface 9% 7% Other - 6% Wall Roof Roof 38% 27% 21% Wall 55% Facade Facade 33% 18% 9 Development of Markets

  6. Slide 6: Central-East Europe: Growth At Normalized Level

    Central-East Europe Growth At Normalized Level Share of revenues 36%, EBITDA 57% ƒ PL – growth at normalized level ƒ ROM, BUL, RUS – steady and strong growth ƒ HUN – residential construction declines in Q2 ¨ lower demand for bricks ƒ CZ, SK – imports from GER lead to lower sales volumes ƒ HR, SLO, B

  7. Slide 7: Central-West Europe

    Central-West Europe Share of revenues 17%, EBITDA 8% ƒ Switzerland: weakening of new residential construction from high level ƒ Italy: increasing pressure on prices ƒ Germany: disappointing development of single and two-family housing construction as well as shutdown and idle capacity costs GER – Fu

  8. Slide 8: Disappointing Development Of Building Permits in Germany

    Disappointing Development Of Building Permits in Germany Since 2006 30.000 27.500 25.000 22.500 20.000 17.500 15.000 12.500 10.000 7.500 Jan.06 Jän.06 Apr.06 Apr.06 Jul.06 Jul.06 Oct.06 Okt.06 Jan.07 Jän.07 Apr.07 Apr.07 Jul.07 Jul.07 Oct.07 Okt.07 Jan.08 Jän.08 Apr.08 Apr.08 Source: Statistisches B

  9. Slide 9: North-West Europe

    Central-West Europe - Half Year Results in € mill. 2007 2008 Chg. in % Revenues 221.3 217.4 -2 EBITDA 36.5 17.9 -51 Margin 16.5% 8.2% - EBIT 16.8 -1.1 <-100 Employees 2,422 2,399 -1 North-West Europe Share of revenues 39%, EBITDA 38% ƒ Revenue growth based on consolidation of Sandtoft and Baggeridge

  10. Slide 10: UK – Slump in New Residential Construction

    UK – Slump in New Residential Construction Beginning in Mid-April ƒ Good development in Q1 ƒ Spread of financial crisis in Q2 ƒ Sharp drop in new residential construction ƒ Growth in revenues through Baggeridge and Sandtoft ƒ Earnings negatively affected by shutdown and idle capacity costs - 2 plant

  11. Slide 11: North America – Continued Sharp Decline in US Residential Construction

    North-West Europe - Half Year Results in € mill. 2007 2008 Chg. in % Revenues 440.8 494.1 +12 EBITDA 89.5 89.7 0 Margin 20.3% 18.2% - EBIT 60.9 54.7 -10 Employees 3,972 4,917 +24 North America – Continued Sharp Decline in US Residential Construction Share of revenues 10%, EBITDA 3% ƒ Housing starts

  12. Slide 12: Development of US Housing Starts

    Development of US housing starts 1985 to June 2008 1990 2001 2008 2500 2000 1500 1000 500 Feb.85 Feb.86 Feb.87 Feb.88 Feb.89 Feb.90 Feb.91 Feb.92 Feb.93 Feb.94 Feb.95 Feb.96 Feb.97 Feb.98 Feb.99 Feb.00 Feb.01 Feb.02 Feb.03 Feb.04 Feb.05 Feb.06 Feb.07 Feb.08 Source: US Census Bureau, NAHB monthly sur

  13. Slide 13: Income Statement

    Results For The First Six Months of 2008 Income Statement in € mill. 1-6/2007 1-6/2008 Chg. in % Revenues 1,227.3 1,263.6 +3 EBITDA before Restr. 256.6 235.6 -8 Restructuring – (cash) - -2.2 - EBITDA after Restr. 256.6 233.4 -9 EBITDA-Margin 20.9 % 18.5 % - Restructuring – (non cash) - -3.6 - EBIT a

  14. Slide 14: Balance Sheet and Cash Flow

    Balance Sheet in € mill. 31.12.2007 30.06.2008 Chg. in % Equity 1) 2,672.7 2,618.4 -2 Net debt 566.8 871.0 +54 Equity ratio 61.7% 57.5% - Gearing 21.2 % 33.3 % - Capital employed 3,060.2 3,301.0 +8 Balance sheet total 4,329.9 4,553.0 +5 1) Including minority interests 27 Cash Flow in € mill. 1-6/200

  15. Slide 15: Investments 1-6/2008; Strategy For The Second Half Of 2008

    Investments 1-6/2008 in € mill. 1-6/2007 1-6/2008 Chg. in % Maintenance capex 55.2 49.9 -10 Growth investments 95.3 203.9 >100 Total 150.5 253.8 +69 Maintenance capex: 50% of depreciation (€ 99.6 mill.) 29 Strategy For The Second Half Of 2008 30

  16. Slide 16: Goal: Maximize Free Cash Flow

    Goal: Maximize Free Cash Flow ƒ ~25 plants will be shutdown or mothballed - Implement restructuring program in GER and UK: Remove smaller, older plants from network ƒ Cost optimization ƒ Maintenance capex for 2008e: ~ € 100 million 31 Use of Free Cash Flow ƒ Dividend ƒ Selective continuation of expa

  17. Slide 17: Investment Program for 2008; Financing Secured

    Investment program for 2008 ƒ Maintenance capex: ~ € 100 million ƒ Growth investments: ~ € 450 million - Bolt-on projects ~ € 350 million - Strategic acquisitions ~ € 100 million 33 Financing Secured ƒ Dividend payment ƒ Financing for growth projects secured ƒ Maintenance of investment grade rating

  18. Slide 18: Outlook on 2008: Central-East Europe

    Outlook on 2008 Central-East Europe ƒ PL, ROM, BUL and RUS: further growth expected ƒ Lower sales volumes in HUN ƒ Accelerated sales volumes policy in CZ and SK ƒ HR, SLO, BiH: stable/positive development ƒ Slight decline in margins due to effect of inflation on production costs as well as higher en

  19. Slide 19: Outlook: Central-West and North-West Europe

    Central-West Europe ƒ Decline and price pressure in Italy ƒ No recovery for GER expected ƒ Stable development in Switzerland ƒ Decline in earnings expected 37 North-West Europe ƒ Decline in consumer confidence expected ƒ Weakening/stable development in F, BE, NL in second half-year ƒ UK remains weak

  20. Slide 20: Outlook 2008: North America

    North America ƒ NAHB forecasts 1.07 million housing starts (-21% yoy) ƒ Strong decline for single family houses expected (-40% yoy) ƒ Good development at Arriscraft 39 Outlook 2008 ƒ Market development uncertain ƒ Price-related increase 2008e of approx. € 45 million in energy costs ƒ Decline in EBIT

  21. Slide 21: Foundation Of The Wienerberger Strategy

    Foundation Of The Wienerberger Strategy Sustainable Geographic strategy portfolio ƒFocus on Growth core business 41 Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 Tel +43 1 60192 - 463, Fax +43 1 60192 - 466 [email protected] | www.wienerberger.com 42

  22. Slide 22: Appendix: Wienerberger Group Today

    Appendix: Wienerberger Group Today 43 Profitable Product Groups in Core Business Hollow Bricks (Wall) Facing Bricks (Facade) No. 1 worldwide No. 1 in Europe, Co-Leader in USA Revenues: 38% EBITDA: 55% EBITDA margin: 27% Revenues: 33% EBITDA: 18% EBITDA margin: 10% Roof Tiles (Roof) Pavers (Surface)

  23. Slide 23: Explanation of Margins per Product Group

    Explanation of Margins per Product Group Hollow bricks: EBITDA margin: 27% Facing bricks: EBITDA margin: 10% High margins due to: Low margins due to: ƒ Strong market positions ƒ High proportion of trading revenue ƒ Strong growing CEE-markets ƒ Locally specific customer requirements ƒ Latest technolo

  24. Slide 24: Wienerberger Roofing Markets in Europe

    Wienerberger Roofing Markets in Europe Europe (total): No. 2 in clay roof tiles ƒ Major competitors: Monier (formerly Lafarge Roofing), Etex, Imerys, Terreal 33 ƒ Some privately owned mid-size competitors in Germany Wienerberger plants Wienerberger export markets JVs Bramac (50%) and / or Tondach Gl

  25. Slide 25: Wienerberger Shareholder Structure

    Wienerberger Shareholder Structure By country Other Switzerland 5% ƒ 100% free float France 2% 3% Northern Europe USA 4% 32% ƒ 3 larger institutional investors: Germany 7% - AIM Trimark Investments, CAN, owns more than 10% of the shares Austria 17% - Dodge & Cox, USA, owns more than 10% of the share

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