Wienerberger AG · VIE:WIE
Wienerberger — FY2010 Earnings Presentation
28 slides from Wienerberger's earnings presentation, Feb 22, 2011
Slide 1: Investor & Analyst Meeting
Investor & Analyst Meeting Wienerberger 2010 at a Glance | Results 2010 & Financing | Wienerberger Markets 2010 | Strategy | Outlook 2011 | Dividend February 22, 2011 Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independent
Slide 2: 2010: Turnaround Achieved
2010: Turnaround Achieved Restructuring completed - Action Plan 2009 implemented | no further measures in 2010 - Fixed cost savings of € 35 mn in 2010 Slight increase in EBITDA despite weak weather-related start and end of the year and proactive pricing policy in CEE - EBITDA 2010: € 210.8 mn (+
Slide 3: Tondach Gleinstätten and Semmelrock
Tondach Gleinstätten Producer of clay roof tiles with 19 plants in 11 countries 50% Wienerberger | 50% family-owned Excellent position in growth markets Modern and efficient plant network 2010: € 180 mn 1) revenues | 2,327 employees - Weak market environment - Declining revenues and earnin
Slide 4: Pipelife and Steinzeug-Keramo
Pipelife One of the leading international suppliers of plastic pipe systems 26 plants in 18 countries (Europe, USA) 50/50 joint venture with Belgian partner Solvay At-equity consolidated – not included in operating results 2010: € 716 mn revenues | 2,596 employees - Slight increase in reve
Slide 5: Wienerberger Benefits from a Strong Operational Basis
Wienerberger Benefits from a Strong Operational Basis Leading market positions in core businesses Modern, efficient plant network Sound capital structure - Gearing of only 15% Premium, innovative product portfolio - Infill blocks | plane ground blocks | sturmFIX High level of system compet
Slide 6: Income Statement and Results 2010 by Region
Income Statement in € mn 2009 2010 Chg. in % Revenues 1,816.9 1,744.8 -4 Operating EBITDA 1) 208.6 210.8 +1 Operating EBITDA margin 11.5% 12.1% +5 Depreciation 189.6 200.1 +6 Restructuring costs 2) -153.7 0.0 >100 Impairment charges to goodwill -123.3 0.0 >100 EBIT -258.1 10.7 >100 Financial results
Slide 7: Results 2010 by Product
Results 2010 by Product Revenues: € 1,744.8 mn | -4% EBITDA: € 210.8 mn | +1% Surface Investments & Other Surface 11% -13% 11% Wall Wall 36% Facade 37% 21% Facade 28% Roof Roof 25% 44% 13 Change in Revenues 2010 vs. 2009 1,816.9 -1% +2% -4% 1,744.8 -5% Lower average prices due to proactive pricing
Slide 8: Change in EBITDA by Region
Change in EBITDA by Region 2010 vs. 2009 +17.8 210.8 208.6 -6.8 +1% +10.6 +3.3 -22.7 EBITDA 1) Central-East North-West Central-West North Investments EBITDA 2009 Europe Europe Europe America & Other 2010 Note: in € mn 1) Before restructuring costs and impairment charges to property, plant and equipm
Slide 9: Strong Balance Sheet – Gearing only 15%
Strong Balance Sheet – Gearing only 15% in € mn 2007 2008 2009 2010 Chg. in % Equity 1) 2,672.7 2,497.2 2,547.0 2,525.7 -1 Net debt 566.8 890.2 408.0 374.5 -8 Equity ratio 62% 57% 62% 62% - Gearing 21% 36% 16% 15% - 1) Including non-controlling interests and hybrid capital (100% equity according to
Slide 10: Total Investments and Net Debt Reduction
Total Investments of approx. € 150 mn in € mn 2009 2010 Chg. in % Maintenance capex 62.7 61.7 -2 in % of depreciation 33% 31% - Growth investments 71.4 88.1 +23 Total investments 134.1 149.8 +12 19 Net Debt Further Reduced in 2010 500 +32.5 408.0 +149.8 400 374.5 -64.5 300 in € mn -151.3 200 100 0 N
Slide 11: Covenants Renegotiated
Covenants Renegotiated Beginning of 2011: renegotiation of covenants Agreement on two new key figures: - Net debt / operating EBITDA 1) < 3.5 - Operating EBITDA 1) / interest results > 3.75 Covenants for Wienerberger of minor importance - Valid only for outstanding bank debt of approx. € 120 m
Slide 12: Wienerberger Markets 2010: Regions at a Glance
Wienerberger Markets 2010 23 Regions at a Glance Central-East Europe - Further significant decrease in demand for building materials - Proactive pricing policy to gain market shares - Amount of premium products increased Western Europe - Stable or slightly positive development in Western Europe
Slide 13: Central-East Europe
Central-East Europe (1) Results 2010 Share of Group Share of Group Central-East Europe (in € mn) 2009 2010 Chg. in % revenues 2010 EBITDA 2010 Revenues 582.7 531.7 -9 Operating EBITDA 1) 108.8 86.1 -21 30% 41% Operating EBITDA margin 18.7% 16.2% - EBIT -29.8 20.6 >100 1) Before restructuring costs a
Slide 14: Product Innovation: Dryfix System
Product Innovation Clay Blocks: Wienerberger DRYFIX System Launch: 2007 in Austria Vigorous growth despite crisis 2010: launch of Dryfix extra Austria Czech Republic +116% +46% +59% +266% 2008 2009 2010 2008 2009 2010 Note: figures repesent volume development of plane ground blocks with Dryfix
Slide 15: North-West Europe
North-West Europe (1) Results 2010 Share of Group Share of Group North-West Europe (in € mn) 2009 2010 Chg. in % revenues 2010 EBITDA 2010 Revenues 729.2 716.4 -2 Operating EBITDA 1) 102.5 113.1 +10 Operating EBITDA margin 14.1% 15.8% - 41% 54% EBIT -41.1 44.6 >100 1) Before restructuring costs and
Slide 16: Wienerberger as One-stop Shop for Roofers: KoraTech
Wienerberger as ”One-stop Shop” for Roofers KoraTech® Technical Roof Accessories KoraTech: Enlargement of the Wienerberger product portfolio through technical fittings Non-ceramic, technical accessories for the roof 1 2 3 4 5 Ridge and hip roll Ventilation system Snow retention Valley Underlay 6
Slide 17: Central-West Europe
Central-West Europe Results 2010 Share of Group Share of Group Central-West Europe (in € mn) 2009 2010 Chg. in % revenues 2010 EBITDA 2010 Revenues 391.1 384.4 -2 17% Operating EBITDA 1) 32.3 35.6 +10 22% Operating EBITDA margin 8.3% 9.3% - EBIT -62.3 1.5 >100 1) Before restructuring costs and impai
Slide 18: North America
North America Results 2010 Share of Group Share of Group North America (in € mn) 2009 2010 Chg. in % revenues 2010 EBITDA 2010 Revenues 149.0 144.5 -3 8% 2% Operating EBITDA 1) -13.3 4.5 >100 Operating EBITDA margin -8.9% 3.1% - EBIT -97.8 -22.2 +77 1) Before restructuring costs and impairment charg
Slide 19: Core Elements of Wienerberger Strategy
Capacity Development 2007 – 2010 Spare Capacity Mothballed Capacity Closed New change CEE, France, Clay blocks 8% ~30% -13% +23% Germany, India +10% Roof tiles 0% ~30% -2% +12% Sandtoft +10% Facing bricks1) 30% ~30% -32% +22% Baggeridge, CEE -10% Pavers 0% ~20% 0% +50% Concrete pavers CEE +50% 1) Da
Slide 20: Wienerberger Product Portfolio and Growth Opportunities
Wienerberger Product Portfolio Strong exposure to new built and private sector: New built Renovation Private sector Public sector Infrastructure Clay blocks Roof Clay blocks Pavers Pavers Facing bricks Facing bricks Pipes*) Pipes*) Roof GROUP 70% 30% 75% 25% <10% (in % of revenues) Source: Company i
Slide 21: Market Outlook 2011
Outlook 2011 | Dividend 41 Market Outlook 2011 North America Western Europe Central-East Europe Market Market Market Limited visibility Ongoing recovery in Western Still limited visibility Stable demand in H1 Europe expected Uncertainty | low consumer Slight recovery in H2 possible Ger
Slide 22: Assumptions for 2011
Assumptions for 2011 Region CEE NWE CWE NA Volumes ? slightly up slightly up ? Prices Adjustments in line with cost inflation in most countries intended Wienerberger Input costs Slight cost inflation Energy Assuming STABLE production volumes: already more than 50% hedged for 2011 ~ € 15 mn highe
Slide 23: Dividend for 2010 and Mid-term Goals
Dividend for 2010 Dividend payout planned for 2010 after waiver of dividend in 2008 and 2009 Future dividend policy depends on further development of earnings Proposal to Annual General Meeting: Dividend payout of € 0.10 per share 45 Mid-term Goals Continuous increase in earnings EBITDA > €
Slide 24: Appendix: Wienerberger Group
Wienerberger Investor Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 Tel +43 1 60192 - 471, Fax +43 1 60192 - 466 [email protected] | www.wienerberger.com 47 Appendix: Wienerberger Group Wienerberger at a Glance | Shareholder Structure | Product Groups | Market Positions | Co
Slide 25: Wienerberger at a Glance
Wienerberger at a Glance International building materials group - 27 countries + 5 export markets - 229 plants in Europe, North America and India Founded 1819 in Vienna Other 6% Switzerland Shareholder structure: 8% USA France 6% 36% - 100% free float Northern Europe - One major international
Slide 26: Leading Positions in Core Business
Leading Positions in Core Business Roof systems – No. 1 in Europe1) Wall systems – No. 1 worldwide Surface – Facade – No. 1 in Europe; Leader in Europe Co-leader in the USA 1) Concerning clay roof tiles 51 Wienerberger Brick Markets in Europe 1 1 Europe (total): No. 1 1 1 1 1 Clay Blocks: 1 2 - No
Slide 27: Wienerberger Roofing Markets in Europe
Wienerberger Roofing Markets in Europe 1 Europe (total): No. 1 1 in clay roof tiles 1 1 Major competitors: Monier (formerly 3 2 Lafarge Roofing), Etex, Imerys, Terreal 1 11 2 Some privately owned mid-size competitors in Germany 1 1 1 1 1 11 2 4 1 1 1 1 1 1 11 1 1 1 1 11 1 4 1 Wienerberger plants
Slide 28: Competitive Advantage of Wienerberger in the Brick Industry
Competitive Advantage of Wienerberger in the Brick Industry Cost Leadership in technology Leadership Economies of scale Fast adaptation of fixed cost base to market conditions Know-How Transfer of engineering know-how across operations Transfer Leverage innovation process and subsequent ro