Wienerberger AG · VIE:WIE
Wienerberger — FY2004 Earnings Presentation
32 slides from Wienerberger's earnings presentation, Mar 30, 2005
Slide 1: Press Conference Full Year Results 2004, Outlook 2005
Press Conference Full Year Results 2004 Outlook 2005 March 30, 2005 Highlights 2004 March 30, 2005 1
Slide 2: 2004 in Review
2004 in Review Significant earnings improvement Free float company Successful capital increase Accelerated growth Results for 2004 70% Growth rates 2004 vs. 2003 +61% +38% 35% +21% +14% 0% Revenues EBITDA EBIT PAT 2
Slide 3: Results for 2004
Results for 2004 Revenues: EBITDA: € 1,758.8 mill. € 405.4 mill. (2003: 1,544.0) (2003: 334.6) EBIT: Profit after tax: € 257.5 mill. € 181.8 mill. (2003: 186.1) (2003: 112.9) 2004 in Review Global economy positive Central-East Europe: - Growth market with fluctuations Central-West Europe: - Posi
Slide 4: EBITDA Changes and 2004 Revenues by Segment
EBITDA Changes vs. 2003 Central-East Europe + € 14.9 mill. Central-West Europe + € 18.6 mill. North-West Europe + € 46.5 mill. USA + € 10.0 mill. Group + € 70.8 mill. 2004 Revenues by Segment USA 16% Inv. & Central- Other East Europe -1% 28% 1,758.8 +14% € mill. North- West Europe Central-
Slide 5: 2004 EBITDA by Segment
2004 EBITDA by Segment USA 15% Inv. & Other Central- -4% East Europe 405.4 35% +21% € mill. North- West Europe 33% Central- West Europe 21% Strategic Developments 2004 5
Slide 6: Strategic Developments in 2004
Strategic Developments in 2004 Ö Wienerberger becomes a 85%+ free float company BA-CA and Koramic sell 16.1 mill. shares (24.6%) for € 395 mill. on February 17 Ö Global capital increase of € 221.8 mill. in May Wienerberger Shareholder Structure: Regional Distribution 2%2% 1% 2% 8% UK 33% USA Ö 11%
Slide 7: Accelerated Growth in 2004
Accelerated Growth in 2004 Growth investments 2004: € 543 mill. Koramic Roofing (50%): € 224 mill. thebrickbusiness: € 141 mill. 27 bolt-on projects: € 178 mill. Financial Statements 2004 7
Slide 8: Income Statement and Balance Sheet Ratios
Income Statement in € mill. 2003 2004 Chg. % Revenues 1.544,0 1.758,8 +14 EBITDA 334,6 405,4 +21 EBITDA margin 21,7% 23,1% - EBIT 186,1 257,5 +38 Financial results -30,1 -26,1 +13 Profit before tax 156,0 213,4 +48 Profit after tax 112,9 181,8 +61 Balance Sheet Ratios Balance Sheet Ratios 2003 2004 E
Slide 9: Free Cash Flow 2004
Free Cash Flow 2004 Free cash flow (in € mill.) 2004 Free cash flow: Cash flow - operating activities 336.3 +14% to Cash flow - investing activities -577.7 € 300.7 mill. Growth investments 542.2 Wienerberger Value Management ROCE: CFROI: 9.7% 12.9% (adjusted: 10.3%) (adjusted: 13.4%) (2003: 8.7%) (2
Slide 10: Dividend Recommendation for 2004
Dividend Recommendation for 2004 Dividend: Yield: € 1.07 Ø price: 3.7% (+39%) 31.12.04: 3.0% (2003: € 0.77) Development of Earnings per Share +26% 3,0 2,54 EPS 2,5 Adj. EPS 2,01 2,0 1,71 1,5 1,0 0,5 0,0 2003 2004 Ö Major increase in EPS despite higher number of shares 10
Slide 11: Earnings per Share 2001 – 2004
Earnings per Share 2001 – 2004 3,0 Adjusted Earnings per Share (in €) 2,54 2,5 2,01 2,0 1,57 1,5 1,0 0,83 0,5 0,0 01 02 03 04 Note: adjusted for goodwill amortization and non-recurring items Central-East Europe 11
Slide 12: Central-East Europe: The Year 2004
Central-East Europe The Year 2004 Strong organic growth Profitable growth through bolt-on projects Improved margins on most markets Local decline in HUN Central-East Europe Results Highlights 2004 Revenues: EBITDA: +8% to +12% to € 489.7 mill. € 142.2 mill. 12
Slide 13: Central-East Europe Results 2004 and Outlook
Central-East Europe Results 2004 in € mill. 2003 2004 Chg. in % Revenues 455,1 489,7 +8 EBIT DA 127,3 142,2 +12 Margin 28,0% 29,0% - EBIT 91,2 101,6 +11 Central-East Europe Analysis 2004 / Outlook 2005 (I) Austria: 04: - Slight recovery in new residential construc. - Better capacity utilization an
Slide 14: Central-East Europe Analysis 2004 / Outlook 2005 (II)
Central-East Europe Analysis 2004 / Outlook 2005 (II) Czech Rep.: 04: Very strong new residential construction, substantial earnings improvement 05e: Further growth and earnings increase Hungary: 04: Sales decline through reduction in construction subsidies, slight profit decline 05e: Uncertaint
Slide 15: Central-East Europe Outlook (IV) and Projects in 2005
Central-East Europe Analysis 2004 / Outlook 2005 (IV) Semmelrock: 04: Expansion of market position 05e: Expansion, strong earnings growth Bramac: 04: Strengthening of market positions, maintaining earnings level in all markets 05e: Sales increase and strengthening / expansion of strong market po
Slide 16: Central-East Europe / Central-West Europe
Central-East Europe Due to the strong market positions and the utilization of long-term growth potentials essential pillar of future earnings growth Central-West Europe 16
Slide 17: Central-West Europe: The Year 2004
Central-West Europe The Year 2004 Significant optimization of margins Earnings growth through sales increase Successfully continued course in CH and I Germany remains weak, improved earnings through Trost acquisition Central-West Europe Results Highlights 2004 Revenues: EBITDA: +12% to +27% to € 373
Slide 18: Central-West Europe Results for 2004
Central-West Europe Results for 2004 in € mill 2003 2004 Chg. in % Revenues 332,2 373,2 +12 EBITDA 68,6 87,2 +27 Margin 20,7% 23,3% - EBIT 28,9 51,4 +78 Central-West Europe Analysis 2004 / Outlook 2005 (I) Germany: 04: - Continuously weak market - Earnings increase through improved hollow brick sa
Slide 19: Central-West Europe Analysis 2004 / Outlook 2005 (II)
Central-West Europe Analysis 2004 / Outlook 2005 (II) Italy: 04: Unchanged strong residential construction 05e: Maintaining strong earnings level, margins pressure due to new capacity in 2. half Switzerland: 04: Pleasant development 05e: Stable positive expectations North-West Europe 19
Slide 20: North-West Europe: The Year 2004
North-West Europe The Year 2004 Accelerated growth Koramic acquisition Acquisition of Wewers (DK) Market entry in UK with TBB North-West Europe Results Highlights 2004 Revenues: EBITDA: +32% to +53% to € 633.3 mill. € 134.5 mill. 20
Slide 21: North-West Europe Results for 2004
North-West Europe Results for 2004 in € mill. 2003 2004 Chg. in % Revenues 480,7 633,3 +32 EBITDA 88,0 134,5 +53 Margin 18,3% 21,2% - EBIT 43,6 83,2 +91 North-West Europe Summary of 2004 Integration of acquisitions - Since 2000: >50 new plants / revenues tripled Compact, uniform organization in
Slide 22: North-West Europe Analysis 2004 / Outlook 2005
North-West Europe Analysis 2004 / Outlook 2005 (I) Belgium: 04: Stable/slightly positive market, sales plus in bricks, stable in roofing 05e: Earnings increase in a friendly market France: 04: Strong new residential construction, volume growth in hollow bricks and roof tiles 05e: Positive enviro
Slide 23: North-West Europe Projects in 2005
North-West Europe Projects in 2005 Hollow bricks: - Development of plane bricks (B) Facing bricks: - Beerse 3 (B) - Expansion of Ollainville (F) - Expansion of Roodvoet (NL) - Renovation of Ewhurst (UK) - Expansion of Warnham (UK) Clay roof tiles: - Expansion of Seltz (F) North-West Europe Western E
Slide 24: USA: The Year 2004
USA USA The Year 2004 Record earnings Full capacity utilization and strong demand Continued optimization of plant structure Expansion of direct sales 24
Slide 25: USA Results Highlights 2004
USA Results-Highlights 2004 Revenues: EBITDA: +13% to +20% to € 284.4 mill. € 59.1 mill. USA Results for 2004 in € mill. 2003 2004 Chg. in % Revenues 252,1 284,4 +13 EBITDA 49,1 59,1 +20 Margin 19,5% 20,8% - EBIT 26,7 42,0 +57 25
Slide 26: USA Analysis 2004 / Outlook 2005
USA Analysis 2004 / Outlook 2005 2004: - Price and sales increase at strong demand - Focus on substituting old plants through “mega plants” - Enlargement of direct distribution via acquisition of three building merchants 2005e: - Continued strong demand Ö sector sold out - Slight increase of mar
Slide 27: USA Projects 2005
USA Projects 2005 Greenfield/plant expansion: - Rome III - Brickhaven III - Louisville Expansion - Kingsport Expansion 2004 Operating and strategic a new record year! 27
Slide 28: The Future of Wienerberger
The Future of Wienerberger The Two Fundamentals of the Wienerberger Strategy Wienerberger Growth Strategy Free Cash Flow Growth Projects 28
Slide 29: Wienerberger The Growth Company
Wienerberger The Growth Company Focus on bricks and roof tiles WB is the logical consolidator in the industry Operating presence on most markets, many opportunities for bolt-on projects Ö Unique access to profitable growth Growth Investments 2005e Bolt-on Projects 2005: ~ € 250 mill. Larger ac
Slide 30: Growth Financing in 2005
Growth Financing in 2005 Ö Annual growth financing: ~ € 300 mill. Free cash flow 2004: € 301 mill. 2004 dividend: ~ € 79 mill. Debt capacity (at unchanged gearing): ~ € 80 mill. Growth Financing in 2005 (II) Ö One-time growth financing: max. € 600 mill. Target-Gearing: 60 to 80%, short-term
Slide 31: Global Economy in 2005 and Wienerberger 2005
Global Economy in 2005 Ö Global development Slowing dynamics No highlights Sideways movement Wienerberger 2005 Robust development through geographic portfolio Increase in operating earnings Continuation of profitable growth course Important focus on: - Products and - Technology 31
Slide 32: Sleep well: Invest in Bricks.
The Wienerberger Group Goals Year on Year: EBITDA & EPS: > +10% p.a. Mid-term – sustainable target level: EBITDA margin: >25% ROCE: >10% Sleep well: Invest in Bricks. Wienerberger Investor & Public Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 T +43 1 60192 - 463, F +43 1 6019