Wienerberger AG · VIE:WIE
Wienerberger — H1 2005 Earnings Presentation
25 slides from Wienerberger's earnings presentation, Aug 17, 2005
Slide 1: Interim Financial Statements Press Conference H1 Results & Outlook 2005
Interim Financial Statements Press Conference H1 results & Outlook 2005 August 17, 2005 H1 2005 at a glance Continued growth of results despite challenging conditions - Sluggish economy in general - Significant rise in energy costs - Long winter 1
Slide 2: General Economic Conditions and Mid-Year Results 2005
General Economic Conditions First Six Months of 2005 Residential construction without major highlights Central-East Europe: - Noticeable decline in Poland and Hungary Central-West Europe: - Germany still weak, Italy and Switzerland good North-West Europe: - Good / stable development, UK weaker
Slide 3: Change of EBITDA and Strategic Priorities in 2005
Change of EBITDA vs. 1-6/2004 Central-East Europe -8.1 million € Central-West Europe -0.9 million € North-West Europe +25.3 million € USA +2.9 million € Investments and others -3.3 million € Wienerberger Group +15.9 million € Strategic Priorities in 2005 Ö Focus on bolt-on projects and screening of
Slide 4: Financial Statements for the First Six Months 2005 Income Statement
Financial Statements for the First Six Months 2005 Income Statement in € million 1-6/2004 1-6/2005 Chg. % Revenues 837,6 922,8 +10 EBITDA 185,8 201,7 +9 EBITDA margin 22,2% 21,9% - EBIT 120,4 123,4 +2 Financial result -13,9 -11,7 +16 Profit after tax 82,3 88,9 +8 4
Slide 5: Revenues and EBITDA 1-6/2005 by Segments
Revenues 1-6/2005 by Segments Investments & Others USA 0% 17% CE-Europe 24% € 922.8 +10% million NW- Europe CW-Europe 40% 19% EBITDA 1-6/2005 by Segments Investments & Others USA -3% 15% CE-Europe 29% € 201.7 +9% million NW-Europe 41% CW-Europe 18% 5
Slide 6: Analysis of Energy Costs and Balance Sheet Ratios
Analysis of Energy Costs Ö Spiking energy costs! 1-6/2004: € 92.2 million | 11.0% of revenues 2004: € 198.6 million | 11.3% of revenues 1-6/2005: €16.9 million | 12.7% of revenues = extra charge: ~ € 15 million Balance Sheet Ratios 31.12.2004 30.6.2005 Chg. in % Equity in € million 1.367,2 1.3
Slide 7: Placement of the Wienerberger Debut Bond
Placement of the Wienerberger Debut Bond Issuer Wienerberger AG Date April 2005 Volume € 400 million (increased after 3x oversubscription) Interest rate 3.875% Maturity 7 years Use of funds Refinancing of short-term maturities Sleep tight. We already have half the way behind us. Central-East Europe
Slide 8: Central-East Europe: The First Six Months 2005
Central-East Europe The First Six Months 2005 Decline in revenues and results - 2004 was an exceptionally good year (advance purchases) and long winter - Weak markets in Poland and Hungary - Profitable growth maintained by bolt-on projects Central-East Europe Results 1-6/2005 in € million 1-6/2004 1
Slide 9: Central-East Europe Analysis 1-6 / Outlook 2005 (I-II)
Central-East Europe Analysis 1-6 / Outlook 2005 (I) Austria: - Housing starts stable - Optimization and cost efficiency - Improvement of operating results - Stable/slightly positive development Central-East Europe Analysis 1-6 / Outlook 2005 (II) Czech Rep. - Slight decline in 1-/2-family housing co
Slide 10: Central-East Europe Analysis 1-6 / Outlook 2005 (III-IV)
Central-East Europe Analysis 1-6 / Outlook 2005 (III) Slovakia - Stronger dynamics in housing construction, better results - Integration of North-Slovakian brick plants SLO / HR - Market development as expected - Price pressure, decline of results Romania - Strong market growth - Increase of brick m
Slide 11: Central-East Europe Summary
Central-East Europe Temporary downturn in Poland and Hungary Over the long-term, Central-East Europe remains a key driver for revenue growth and profitability of Wienerberger Central-West Europe Sleep well. Invest in bricks. 11
Slide 12: Central-West Europe: The First Six Months 2005
Central-West Europe The First Six Months 2005 Satisfactory performance - Market continues to decline in Germany - Integration of von Müller clay roofing (G) - Excellent results in Italy and Switzerland Central West Europe Results 1-6/2005 in € million 1-6/2004 1-6/2005 Chg. in % Revenues 180,3 180,8
Slide 13: Central-West Europe Analysis 1-6 / Outlook 2005
Central-West Europe Analysis 1-6 / Outlook 2005 (I) Germany: - Weak market and long winter - Integration cost of von Müller clay roofing - Decline in sales volumes and profits - Increasing pressure on prices in the clay roof tile segment - Consolidation continues - Strengthening of clay roof tile ac
Slide 14: Central-West Europe Summary
Central-West Europe Significant upside potential over the mid-term through Germany Wienerberger: One who never sleeps. North-West Europe 14
Slide 15: North-West Europe: The First Six Months 2005
North-West Europe The First Six Months 2005 Overall demand positive and strongly improved results - Belgium and France strong - Stable development in the NL - Market decline in the UK - Growth in Northern Europe North-West Europe Results 1-6/2005 in € million 1-6/2004 1-6/2005 Chg. in % Revenues 298
Slide 16: North-West Europe Analysis 1-6 / Outlook 2005
North-West Europe Analysis 1-6 / Outlook 2005 (I) Belgium - Improved results on a friendly market - Higher prices for hollow bricks and roof tiles France - Housing starts strong - Profit growth due to product and capacity optimization - Higher results for hollow bricks and clay roof tiles, freight c
Slide 17: North-West Europe Summary
North-West Europe North-West Europe remains the growth driver of the group and a major pillar for future earnings growth. The year began on a quiet note as expected. USA 17
Slide 18: USA: The First Six Months 2005
USA The First Six Months 2005 Continued growth in earnings - Housing starts remain strong - Expansion of capacities - Expansion of direct sales (impact on EBITDA margin) USA Results 1-6/2005 in € million 1-6/2004 1-6/2005 Chg. in % Revenues 136,6 158,6 +16 EBITDA 27,4 30,3 +11 Margin 20,1% 19,1% - E
Slide 19: USA Analysis 1-6 / Outlook 2005
USA Analysis 1-6 / Outlook 2005 Higher earnings due to price increases and optimization of production costs Slight decline in sales volumes due to plant expansion measures H1 Growing share of direct sales: 24% of sales (04: 14%) Lower average dollar exchange rate affects revenues and earning
Slide 20: Outlook Full Year 2005
Outlook Full Year 2005 Keep on dreaming. We are working for you. Global Economy 2005 Ö Economic climate weaker than in 2004 Europe lacking dynamic Growth in the USA Stronger dollar Significant rise in energy costs 20
Slide 21: Outlook Energy Costs
Outlook Energy Costs Ö Energy costs increased significantly in 2005! - Rise in energy costs (esp. for natural gas) can only be passed on to prices with delay - Dampening effect on the economy / investments / consumption Wienerberger in 2005 Increase in energy costs of ca. € 30 million expected R
Slide 22: Wienerberger in 2005
Wienerberger in 2005 Further increase of operating results!! - In spite of difficult economic conditions - Comparison against record year 2004 - 10% increase seems ambitious Strategy: The Future of Wienerberger 22
Slide 23: Sustainable Wienerberger Strategy
Sustainable Wienerberger Strategy Strategy (focus & growth) pays off In difficult environment opportunities arise - Use the weaknesses of others - Continue the profitable growth strategy - Ongoing screaning of various acquisitions Checking future growth potentials outside of Europe and the USA
Slide 24: Integrated Growth Model and Strengths of Wienerberger
Integrated Growth Model Wienerberger Core business bricks and tiles Bolt-on and external projects Free Cash Flow 2004: € 301 million Dividend Growth Gearing 45% pay-out ratio Note: FCF = Cash flow after interest, taxes, changes in WC and maintenance capex The Strengths of Wienerberger Technology l
Slide 25: Wienerberger Group Targets
Wienerberger Group Targets EBITDA & EPS: ≥ +10% p.a. EBITDA margin: >25% ROCE: >10% Gearing: 60 – 80% Sleep well: Invest in bricks. Wienerberger Investor and Public Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 T +43 1 60192 - 463, F +43 1 60192 - 466 [email protected]