Wienerberger AG · VIE:WIE

Wienerberger — Shareholder Meeting (May 2013)

56 slides from Wienerberger's shareholder meeting presentation, May 14, 2013

  1. Slide 1: 144th Annual General Meeting Wienerberger AG

    144th Annual General Meeting Wienerberger AG May 14, 2013 Agenda 1 Overview Financial Year 2012 and Markets 2 Results 2012 and Wienerberger Share 3 Corporate Governance and Remuneration 4 Outlook 2013 and Strategy 5 Elections to the Supervisory Board 2 1

  2. Slide 2: 2012: Dawn of a New Age for Wienerberger

    Overview Financial Year 2012 1 and Markets 3 2012: Dawn of a New Age for Wienerberger  Strategic Milestone: Acquisition of Pipelife (Revenues increase by 40%)  Significant reduction of exposure to cyclical Brick Producer new residential construction  Pipe systems become second strong pillar Appli

  3. Slide 3: Strategic Milestone – Pipelife Takeover

    Strategic Milestone – Pipelife Takeover 5 Strategic Milestone: Acquisition of Pipelife in May 2012 #2  Leading market positions in Europe #1  27 plants | presence in 27 countries #1 #1 #5  2012: € 859 mill. revenues | € 78 mill. EBITDA 60% #1 #2 - ~ 60% of revenues in North and West Europe #1 Sca

  4. Slide 4: Pipelife is the Clear #3 in Europe

    Pipelife is the Clear #3 in Europe #3 Mexchem/Wavin Aliaxis Pipelife Tessenderlo * Uponor Georg Fischer Rehau * Pipes and profiles Source: Annual report, Management estimates 7 Sewage & Rainwater Management Account for 45% of Pipelife’s Revenues Sewage & Rainwater Industrial & Utilities Buildings Ma

  5. Slide 5: Overview Financial Year 2012

    Overview Financial Year 2012 9 Year 2012 10 5

  6. Slide 6: Overview Financial Year 2012

    Overview Financial Year 2012  Significant decline in residential construction activity results in double digit volume decline in Bricks & Tiles Europe Division  Successful turnaround of the brick business in North America  Pipelife generates revenues of € 512 mn and EBITDA of € 49 mn in first sev

  7. Slide 7: Significant Weakening of European Residential Construction

    Significant Weakening of European Residential Construction Management estimates of Europe construction starts in 2012 Declines in all markets North America Recovery after bottoming out in 2011 EFH +12% -4% -20% +1% -12% -17% vs. EFH : -3% EFH -15%-15% -2% -1% -20% Markets below -15% -8% -20% -6% 200

  8. Slide 8: Market development 2007–2012: Two Examples

    Market development 2007 – 2012: Two Examples 15 Netherlands: Market Number of new flats in thd. units Market: 80  Contraction by 43% (!) 70  Structural adjustment process -43% depresses activity below the 60 existing housing need 50  Significant long-term potential 40 30 Strategy:  Strict workin

  9. Slide 9: Netherlands Measures and Hungary Market

    Netherlands: Implemented Measures Following measures have been implemented since 2007:  Capacity reduction by ~ 25% (7 plants shut down)  Headcount reduced by 30%  Production at technical minimum  Creation of job pools to increase flexibility 17 Hungary: Market Completions 1+2 family homes in th

  10. Slide 10: Hungary Production Sites 2007 vs 2012

    In 2007 12 Wienerberger Production Sites were Operational in Hungary… 2007: 12 production sites 19 … in 2012 the Hungarian Market is covered from 3 Production Sites 2012: 3 production sites 20 10

  11. Slide 11: Bricks & Tiles Europe Division: Weak Development

    Bricks & Tiles Europe Division: Weak Development  Substantial earnings decline for Bricks & Tiles Europe Division: - Volumes: -11% H2/2012: - Revenues: - 6% Restructuring - Operating EBITDA: -22% program  Average prices: +4% - Price adjustments to cover cost inflation - Growth with premium product

  12. Slide 12: Turnaround in the USA in 2012; Russia

    Turnaround in the USA in 2012 North America 2005 2011 Vdg. in % 2012 Housing Starts USA in mn 2.03 0.6 -70% 0.8 Wienerberger (in € mn) Turnaround Revenues 337.2 135.3 -60% 193.8 Operating EBITDA 1) 66.4 -8.2 >-100% 9.8 in 2012 Operating EBIT 1) 51.8 -31.6 >-100% -14.7 Employees 2,194 1,127 -48%  20

  13. Slide 13: India: Strong Market Potential

    India: Strong Market Potential  Market entry through green field project Porotherm THERMOBRICK  Significant challenges in many areas: - Production (power supply, monsoon) - Logistics (state of transportation routes, monsoon) Residential project in India - Market introduction (only small brick form

  14. Slide 14: Pipelife Contribution Compensates for Organic Volume Decline

    Pipelife Contribution Compensates for Organic Volume Decline in € mn 2011 2012 Chg. in % Revenues 1,915.4 2,355.5 +23 Operating EBITDA 1) 240.4 245.5 +2 Operating EBITDA margin 12.6% 10.4% Depreciation -200.4 -214.5 -7 1) Operating EBIT 40.0 31.0 -23 Operating EBIT margin 2.1% 1.3% Restructuring cos

  15. Slide 15: Restructuring Costs, Impairment Charges 2012

    Restructuring Costs, Impairment Charges to PPE and Goodwill 2012  Overview restructuring costs, impairment charges to PPE and goodwill in € mn 2012 Cash restructuring costs -28.8 Impairment charges to PPE -14.2 Total Restructuring costs and impairment charges to PPE -43.0 Other impairment charges t

  16. Slide 16: Update on Cost Savings Program

    Update on Cost Savings Program  Implementation of cost savings program on schedule:  Savings target: € 50 mn by the end of 2014  Restructuring costs 2012: € 43 mn in € mn 2012 2013 2014 2015 Cash effective restructuring costs 28.8 0 0 0 Impairments of PPE 14.2 0 0 0 Total restructuring costs 43.0

  17. Slide 17: Revenue and Earnings Contribution Pipelife

    Revenue and Earnings contribution Pipelife  Pipelife increased revenues and earnings significantly in 2012  Pipelife contribution since full consolidation (May 31, 2012):  Revenues: € 511.7 mn  Operating EBITDA: € 49.5 mn  Change in Working Capital: € +103.1 mn Contribution in € mn 2011 2012 Ch

  18. Slide 18: Change in EBITDA by Region; New Reporting Segments

    Change in EBITDA1) by Region 2012 vs. 2011 300 250 240.4 +18.0 245.5 +2% +35.8 +4.9 -0.4 200 -33.0 -20.2 in € mn 150 100 50 0 EBITDA 2011 B&T Western B&T Eastern P&P Western P&P Eastern North America Holding & EBITDA 2012 Europe Europe Europe Europe Others 1) Adjusted for non-recurring income and ex

  19. Slide 19: Results 2012 by Region and Product

    Results 2012 by Region Revenues: € 2,355.5 mn | +23% EBITDA1): € 245.5 mn | +2% Holding & Others Holding & Others 0% North America 4% -6% North America 8% Bricks & Tiles Pipes & Pavers Pipes & Pavers Western Europe Eastern Europe 9% Bricks & Tiles Eastern Europe 48% Western Europe 14% 56% Pipes & Pa

  20. Slide 20: Strong Balance Sheet after Pipelife Takeover

    Strong Balance Sheet after Pipelife Takeover Chg. in % in € mn 31.12.2011 30.6.2012 31.12.2012 vs. 2011 Equity 1) 2,431 2,457 2,364 -3 Net debt 359 787 602 +68 Equity ratio 61% 55% 57% - Gearing 15% 32% 26% - Changes to net debt:  Net cash out for Pipelife acquisition: € 146.6 million (Total net de

  21. Slide 21: Cashflow from Change in Working Capital; Total Investments

    Cashflow from Change in Working Capital: € 102.6 mn in € mn 2011 2012 Chg. in % Increase/decrease in inventories -15.0 46.8 >100 Increase/decrease in trade receivables -19.2 48.9 >100 Increase/decrease in trade payables 6.1 -39.3 <-100 Increase/decrease in other net current assets 23.2 43.2 +86 Chan

  22. Slide 22: Development of Net Debt; Liquidity and Term Structure

    Development of Net Debt 2012 800 +339.1 700 602.0 600 -108.9 500 in € mn 400 +106.7 358.8 300 +32.5 +0.8 200 -127.0 100 0 31.12.2011 Gross Cash Flow Dividends Hybrid Coupon Total Investments ex. Pipelife (total cons. Working Capital & 31.12.2012 received/payed Pipelife effect as of 31/5/12) Others 4

  23. Slide 23: Treasury Ratios; Success for Wienerberger Bond 2013

    Treasury Ratios Covenants 31.12.2011 31.12.2012 Covenant Net debt / operating EBITDA 1) 1.5 2.2 <3.50 Operating EBITDA 1) / interest result 2) 6.4 5.0 >3.75 1) Adjusted for non-recurring income and expenses; Calculated based on 12-month EBITDA 2) Calculated based on 12-month interest result  Target

  24. Slide 24: Invalidation of Individually Securitized Shares

    Wienerberger Share and Dividend 47 Invalidation of individually securitized shares  Company Law Amendment Act 2011: Securitization of all shares in one collective certificate by December 31, 2013 → deposit at OeKB  Invalidation of all effective shares. Invalidation procedure completed by year-end

  25. Slide 25: 2013 Begins With Strong Outperformance; Dividend for 2012

    2013 Begins With Strong Outperformance 11 2.000.000 YTD +34.9% 1.800.000 10 1.600.000 1.400.000 9 1.200.000 8 1.000.000 800.000 7 600.000 vs. Peer +27.0%p 400.000 6 vs. ATX +34.4%p 200.000 5 0 30.12.2011 29.02.2012 30.04.2012 30.06.2012 31.08.2012 31.10.2012 31.12.2012 28.02.2013 30.04.2013 Volume W

  26. Slide 26: Corporate Governance and Risk Management

    Corporate Governance and Remuneration 3 51 Corporate Governance and Risk Management  Full commitment to Austrian Corporate Governance Code (high transparency)  Risk management system with annual risk evaluation implemented  Internal audits conducted by Internal Audit department (direct report to

  27. Slide 27: High Corporate Governance Standards

    High Corporate Governance Standards  Supervisory Board undergoes self evaluation on regular basis - Self evaluation is accompanied by external consultants and areas of application are identified - Measures for improvement of efficiency are defined  New remuneration scheme for Managing Board and To

  28. Slide 28: Remuneration of Managing Board 2012

    Remuneration of Managing Board 2012 > 50% below 2011  Fixed component reflects scope of responsibility of the Managing Board member  Variable component not applicable: - LTI program not applicable for 2011 / 2012 Cash Compensation 2011 2012 Managing Board in € Fixed Variable Total Fixed Variable T

  29. Slide 29: Remuneration of Supervisory Board

    Remuneration of Supervisory Board Supervisory Board Remuneration  Friedrich Kadrnoska voluntarily waived in € 2011 2012 parts of his fixed Friedrich Kadrnoska 77,500 52,500 compensation due to an illness related Christian Dumolin 61,250 61,250 absence Karl Fink 52,500 52,500  Franz Rauch was a Pet

  30. Slide 30: Beneficiaries; New Remuneration Scheme (1/3)

    Beneficiaries  Members of the Managing Board of Wienerberger AG as well as selected Top-Managers are eligible to the new remuneration scheme; eligible Top-Managers are selected every year among the following groups (all in all about 30 people): - Managing Board - Business Unit Management - Top-Mana

  31. Slide 31: New Remuneration Scheme for Managing Board

    New Remuneration Scheme for Managing Board (2/3)  Variable component (1/2): - Targets for following year are defined by the Supervisory Board - Short-term component: - Bonus linked to financial targets (75%; EBITDA und free cash flow) and strategic targets (25%) - Bonus is capped at 100% of fixed r

  32. Slide 32: Outlook 2013 and Strategy

    4 Outlook 2013 and Strategy 63 Q1 and Outlook 2013 64 32

  33. Slide 33: Q1 2013: Weather Related Weak Start

    Q1 2013: Weather Related Weak Start  Q1 results significantly impacted by long and snowy winter  Strong weather related volume decline of 14%  Average prices slightly below Q1 12 level  First-time contribution of Pipelife strengthens Group results  North American business benefits from positive

  34. Slide 34: Agenda for 2013; Structured Sale of Non-core Assets

    Agenda for 2013  Implementation of restructuring program  Strong operating base as platform for sustainable growth  Structured sale of non-core assets  Improvement of revenues and earnings expected despite difficult market environment  Ambitious 2013 goal: € 280 mn Group EBITDA, dependent on: -

  35. Slide 35: Outlook 2013: Increase in Revenues and Earnings Expected

    Bricks & Tiles Europe: Management Market Estimates 2013 Management Estimates housing starts 2013 Market growth Stable development Market decline Source: Management Expectations Wienerberger 69 Outlook 2013: Increase in Revenues and Earnings Expected  Bricks & Tiles Europe: - Moderate volume decline

  36. Slide 36: Strategy Wienerberger

    Strategy 71 Strategy Wienerberger 5. Bolt-on Projects 4. System Supplier 3. Innovation 2. Operational Excellence 1. Diversification 72 36

  37. Slide 37: Diversification

    Strategy Wienerberger 5. Bolt-on-Projekte 4. Systemanbieter 3. Innovation 2. Operational Excellence 1. Diversification 73 Diversification Markets New Renovation 2012 Pipelife (100%) Plastic Pipes   2011 Tondach (50%) Clay Roof Tiles   2010 Steinzeug-Keramo Clay Pipes   2010 Semmelrock Concrete

  38. Slide 38: Operational Excellence: Focus on Bricks & Tiles Europe

    Strategy Wienerberger 5. Bolt-on-Projekte 4. Systemanbieter 3. Innovation 2. Operational Excellence 1. Diversifikation 75 Operational Excellence: Focus on Bricks & Tiles Europe Operational Excellence  Bricks & Tiles Europe: New management team - Ongoing implementation of cost savings program - Ongo

  39. Slide 39: Did you know: homes, roofs and pipes

    Strategy Wienerberger 5. Bolt-on-Projekte 4. Systemanbieter 3. Innovation 2. Operational Excellence 1. Diversifikation 77 Did you know, that … in 2012 Wienerberger products … were used to build and cover ~280,000 km 140,000 homes 180,000 roofs pipes were installed (~ 7x around the world) 78 39

  40. Slide 40: Innovation and Trends for the Future

    Did you know, that… … Wienerberger launched more than 200 new products in 2012? Innovation is a cornerstone for organic growth 79 Trends for the Future 1. Climate Change/ Energy Efficiency 4. Generations  Energy and Buildings  Young families Directive 2020 / energy are first-time neutral buildings

  41. Slide 41: Solutions for the Trends of the Future

    We Today Have the Solutions for the Trends of the Future Wall Roof Facade Pipes Pavers  Insulation filled clay  Large tile formats for  Trendy facade Plastic Pipes:  Einstein-System for blocks shorter handling times design with new  Water Management shorter handling times  DryFix wall system 

  42. Slide 42: Specialized Bricks for Multi-Story Construction

    Urbanization: Specialized Bricks for Multi-Story Construction  Special bricks for one- and two-family homes Example Austria: Porotherm 50 W.i Plan for single Porotherm 20 W.i Objekt for family homes multi-family homes 83 Urbanization & Efficient Building: Wienerberger Wall Solutions for Multi-story

  43. Slide 43: Brick High-rise in Russia; Shorter Handling Time

    Example for Multi-story Building: Healthy Living in a Brick High-rise in Russia 10-story high-rise building in Russia 85 Efficient and Safe Building: Shorter Handling Time with (Brick-)Systems  In recent years the average construction time for dwellings was cut in half. Labor time savings 120 100 1

  44. Slide 44: Earthquake Resistant Bricks; Clay Roof Tiles for Sochi

    Efficient and Safe Building: Special Earthquake Resistant Bricks Provide Security During Earthquakes For regions, where earthquake-resistance is key for buildings, Wienerberger has developed the POROTHERM earthquake resistant clay block. Our earthquake resistant clay blocks proved to have 10 times h

  45. Slide 45: Innovation in Pipes & Pavers Business

    Innovation is One of the Cornerstones of Organic Growth in Pipes & Pavers Business Wall Roof Facade Pipes Pavers  Insulation filled clay  Large tile formats for  Trendy facade Plastic Pipes:  Einstein-System for blocks shorter handling times design with new  Water Management shorter handling ti

  46. Slide 46: Pipelife: Ghana Power Plant; CompoSys Pipes

    Pipelife: Pipes for Power Plant Project in Ghana 91 Pipelife: CompoSys Pipes  Specialized, sustainable product for tree nurseries and gardeners  Pipes contain integrated biological dispenser for optimal cultivation  Pipes consist of ecological plastic and potato starch  Pipes fully degrade after

  47. Slide 47: Vitrified Jacking Pipes; Singapore

    Vitrified Jacking Pipes  Steinzeug-Keramo is technology leader for vitrified jacking pipes  Ecological installation through less movement of soil  Diameters of 150 to 1,400 mm | lengths from 0.5 m to 2.0 m  Drives of more than 200 meters possible 93 Jacking Pipes for Singapore Sewage project in

  48. Slide 48: Market Entry in Bulgaria; Landscaping Solutions

    Market Entry in Bulgaria with Ceramic Pipes Large project for city of Burgas (Black Sea Coast)  42 km of sewage pipes  Open trench  Project start: May 2013 95 Landscaping Solutions for Private Gardens  Product systems with uniform design and textures  Facilitates the realization of harmonious s

  49. Slide 49: 5,500 m² Solution for Wien Westbahnhof

    Landscaping Solutions for Private Gardens 97 5,500 m² Solution for Wien Westbahnhof Westbahnhof Wien Awarding Authority: ÖBB Infrastruktur AG and ÖBB Immobilienmanagement GmbH Architect Engineer: Neumann + Steiner ZT GmbH Construction: ARGE BCWW Hochbau, Pittel + Brausewetter GmbH, Bauunternehmung G

  50. Slide 50: Pavers for Bahnhof Wien Mitte; Einstein System

    5,300 m² of Wienerberger Pavers for Bahnhof Wien Mitte Bahnhof Wien Mitte Awarding Authority : Wien Immobilien GmbH Architect Engineer : Architekten Wien Mitte Construction: ARGE Wien Mitte Concrete paver: Semmelrock pavers and slabs Romano®, white + anthracite blasted with Semmelrock Premium Protec

  51. Slide 51: Brick Wall Heating System

    Strategy Wienerberger 5. Bolt-on-Projekte 4. System Supplier 3. Innovation 2. Operational Excellence 1. Diversifikation 101 Efficient Building: Brick Wall Heating System  Comfortable radiant heat, which reaches most parts of the human body  Increased air humidity during winter  Comfortable and he

  52. Slide 52: Raineo System – Rainwater Management

    Climate Change: Raineo® System – Flood Becomes Fiction One solution and concept for all storm- and rainwater management products and services Central system component is the “Stormbox”, in which the water is collected 103 Raineo® – Rainwater Management System Collection Transport Cleaning Infiltrati

  53. Slide 53: Growth Potential for Wienerberger Group

    Growth Potential for Wienerberger Group 105 Growth Potential Bricks & Tiles  Trend: Economic Building Shorter handling times Balanced system solutions Cost efficiency over entire product life cycle Broad product portfolio  Trend: Health and Safety Room air quality Fire protection Eco friend

  54. Slide 54: Growth Potential Bricks & Tiles; Pipes & Pavers

    Growth Potential Bricks & Tiles  Trend: Energy efficient building e4-brickhouse concept Affordable in construction and operation  Trend: Aesthetics and design in architecture Many models (formats, colors, textures) No fading of colors Extremely durable Perfectly positioned for these building

  55. Slide 55: Bolt-on Projects

    Strategy Wienerberger 5. Bolt-on Projects 4. Systemanbieter 3. Innovation 2. Operational Excellence 1. Diversifikation 109 Bolt-on Projects  Bolt-on Projects: smaller growth projects (construction of new plants, small acquisitions)  Realization of bolt-on projects within our goal for financial dis

  56. Slide 56: Road to Success for Wienerberger Group

    Road to Success for Wienerberger Group Sustainable Growth Innovation Emerging Markets System Supplier Normalized Market Environment 111 56

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