Wienerberger AG · VIE:WIE
Wienerberger — 9M 2010 Earnings Presentation
25 slides from Wienerberger's earnings presentation, Nov 3, 2010
Slide 1: Investor & Analyst Presentation
Investor & Analyst Presentation Results 1-9/2010 | Regions at a Glance | Wienerberger Industrial Portfolio | Capital Structure and Financing | Strategy and Outlook 2010 November 3, 2010 Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has n
Slide 2: Market Environment Still Challenging / Well on Track
Market Environment Still Challenging No signs of improvement in macroeconomic environment - High unemployment - High level of sovereign debt -> extensive austerity measures - Increasing uncertainty, volatile consumer confidence Adverse weather effects in H1 (harsh winter, heavy rainfalls and flo
Slide 3: Key Figures 1-9/2010 / Results by Region
Key Figures – 1-9/2010 in € mn 1-9/2009 1-9/2010 Chg. in % Revenues 1,416.7 1,343.3 -5 Operating EBITDA 1) 177.5 160.5 -10 Operating EBITDA margin 12.5% 11.9% - Operating EBIT 1) 36.7 17.6 -52 Restructuring costs 2) -109.6 0.0 >100 Profit after tax 3) -198.2 -13.5 +93 Net debt 4) 540.5 389.9 -28 CAP
Slide 4: Change in Revenues and EBITDA
Change in Revenues 1-9/2010 vs. 1-9/2009 1,416.7 -2% -5% +2% 1,343.3 -5% Lower average prices due to proactive pricing policy in CEE to increase market shares disproportionate share of (cheaper) commodities response to aggressive pricing by the competition in the USA and Germany Revenues Volum
Slide 5: Income Statement
Income Statement (1) in € mn 1-9/2009 1-9/2010 Chg. in % Revenues 1,416.7 1,343.3 -6 Operating EBITDA 1) 177.5 160.5 -10 Operating EBITDA margin 12.5% 11.9% - Depreciation -140.8 -142.9 -1 Operating EBIT 1) 36.7 17.6 <-100 Operating EBIT margin 2.6% 1.3% - Restructuring costs 2) -109.6 0.0 >100 Impa
Slide 6: Financial Results / Regions at a Glance
Financial Results in € mn 1-9/2009 1-9/2010 Chg. in % Income from investments in associates 4.8 1.2 -75 Interest and similar income 14.5 11.2 -23 Interest and similar expenses -42.6 -45.4 -7 Other financial results -4.7 -0.2 +96 Financial results -28.0 -33.2 -19 11 Regions at a Glance 12
Slide 7: Central-East Europe: Market Environment and Outlook 2010
No Signs of Improvement in Market Environment Q1: harsh winter Sound Q3 cannot Q2: rainfalls/flooding in CEE offset H1 Central-East Europe: no signs of general recovery yet - Poland: downturn in demand leveling off - Czech Republic / Slovakia: further decline | dependency on Germany - Hungar
Slide 8: Central-East Europe: Future Potential
Central-East Europe: Future Potential 10,0 Housing starts (residential) per 1,000 residents 1) 8,0 Western European average 2003-2008 = 5.95 6,0 4,0 2,0 3.8 3.8 3.6 Potential 3.2 3.0 1.0 0,0 2) SK PL CZ HUN ROM BUL Sizeable pent-up demand for new residential construction (desire for own home) Ec
Slide 9: North-West Europe: Future Potential
North-West Europe: Future Potential 10,0 Housing starts (residential) per 1,000 residents 1) 8,0 Western European average 2003-2008 = 5.95 6,0 4,0 5.2 5.0 2,0 3.9 Potential 3.2 1.8 0,0 2) UK F NL BE SCAN No single market was “overbuilt“ in the past: - Pent-up demand for new housing in UK - Stable
Slide 10: Central-West Europe: Future Potential
Central-West Europe: Future Potential 10,0 Housing starts (residential) per 1,000 residents 1) 8,0 Western European average 2003-2008 = 5.95 6,0 4,0 5.8 2,0 Potential 2.7 1.7 0,0 2) CH IT GER No single market was “overbuilt“ in the past: - Germany at very low level for years -> undersupply of hous
Slide 11: North America: Future Potential
North America: Future Potential 3.000 Housing starts USA (in 1,000) 120,0% 2.500 100,0% 2.000 80,0% 1.500 60,0% Normalized level 1.000 40,0% 500 20,0% Potential Source: NAHB 0 0,0% 1960 1970 1980 1990 2000 2010 New residential construction at lowest level since World War II Population growth of
Slide 12: Pipelife Group / Steinzeug Group
Pipelife Group One of the leading international suppliers of plastic pipe systems - More than 2,400 employees in 29 countries (Europe, USA) - Products for residential construction (water and heating) and the public sector (water supply, sewage, etc.) 50/50 joint venture with Belgian partner Solv
Slide 13: Bramac | Tondach
Bramac | Tondach Bramac: - Producer of concrete roof tiles in Central-East Europe - 50% stake (proportionate consolidation) Tondach Gleinstätten: - Specialist for clay roof tiles in Central-East Europe - 25% stake (at-equity consolidation) Ongoing restructuring measures to reflect weaker marke
Slide 14: Strong Balance Sheet – Gearing only 15%
Strong Balance Sheet – Gearing only 15% Chg. in % in € mn 2007 2008 30/9/2009 2009 30/9/2010 vs. 2009 Equity 1) 2,672.7 2,497.2 2,587.4 2,547.0 2,545.6 0 Net debt 566.8 890.2 540.5 408.0 389.9 -4 Equity ratio 62% 57% 58% 62% 62% - Gearing 21% 36% 21% 16% 15% - 1) Including non-controlling interests
Slide 15: Seasonal Increase of Net Debt in Q1 | Decrease in Q2 and Q3
Seasonal Increase of Net Debt in Q1 | Decrease in Q2 and Q3 1,067.9 978.6 890.2 Capital increase € 320 mn in € mn 584.8 € +178 mn 540.5 484.8 408.0 389.9 € +177 mn € -89 mn € -438 mn € -100 mn € -95 mn 31/12/2008 31/3/2009 30/6/2009 30/9/2009 31/12/2009 31/3/2010 30/6/2010 30/9/2010 29 Development o
Slide 16: Covenants
Covenants Waiver / amendment of existing covenants from June 30, 2009 to December 31, 2010 Thereafter return to original covenants Covenants from June 30, 2009 Old New Valid to 30/9/2010 Net debt / <3.0 <3.75 2) Dec. 31, 2010 2.03 LTM operating EBITDA 1) Operating EBIT 1) / Suspended up to >2.75
Slide 17: Refocus on Growth / Wienerberger DRYFIX System
Refocus on Growth Growth through selective Growth through Growth through optimal development / expansion innovative products capacity utilization of markets Plane ground blocks / Dryfix® 30 - 35% through better Expansion in core businesses System solutions capacity utilization Strengthen p
Slide 18: DRYFIX Geographical Expansion and Market Potential
Wienerberger DRYFIX System: Geographical Expansion and Market Potential Successful introduction in Austria, Czech Republic, Slovenia, Croatia, Slovakia, Hungary, Poland and France Volume share in plane ground blocks: 2008 2009 2010 2015 Czech Rep. Start: 10% 35% 60% 80% Hungary Start: 30% 50% 80
Slide 19: Outlook 2010 – Visibility in CEE Still Limited
Outlook 2010 – Visibility in CEE Still Limited North America / UK Continental Europe Central-East Europe Market / Volumes Market / Volumes Market / Volumes UK: slight recovery in H1 | Signs of stabilization Negative weather effects in H1 continuing in H2 GER: positive trend expected Visibi
Slide 20: 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 39 Appendix: Wienerberger Group Market Positions | Product Groups | Restructuring Program 2009 | Competitive Advantage |
Slide 21: 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 Business segments: - Wall systems (clay blocks, Dryfix®) - Roof systems (roof tiles, KoraTech®) - Facade (facing bricks) - Su
Slide 22: 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 23: Leading Positions in Core Business
Leading Positions in Core Business Roof systems – Nr. 1 in Europe1) Wall systems – Nr. 1 worldwide Surface – Facade – Nr. 1 in Europe; Leader in Europe Co-leader in the USA 1) Concerning clay roof tiles 45 Results 1-9/2010 by Product Revenues: € 1,343.3 mn | -5% EBITDA: € 160.5 mn | -10% Surface Bet
Slide 24: Restructuring Completed / Competitive Advantage
Restructuring Completed Restructuring costs and impairments of assets 2009: € 153.7 mn - € 52.6 mn cash Restructuring - € 68.8 mn special write-downs program - € 32.3 mn impairments of assets Impairment charges to goodwill in € mn 2009 Remaining goodwill (31/12/2009) North America 48.2 157.2 Nor
Slide 25: Wienerberger Shareholder Structure
Wienerberger Shareholder Structure by country Other 6% Switzerland 8% 100% free float France 6% USA 36% 2 major institutional investors disclosed: - Dodge & Cox, USA, Northern Europe 7% owns more than 10% of the shares Germany - BZ WBK AIB Asset Management, Poland, 4% owns more than 5% of the sh