Wienerberger AG · VIE:WIE
Wienerberger — Q1-3 2014 Earnings Presentation
18 slides from Wienerberger's earnings presentation, Nov 12, 2014
Slide 1: Investor and Analyst Presentation Results Q1-3 2014
Investor and Analyst Presentation Results Q1-3 2014 November 12, 2014 Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance
Slide 2: Revenue and earnings growth in Q1-3 2014
Revenue and earnings growth in Q1-3 2014 Revenue and earnings growth due to organic volume growth and consolidation effect of Tondach Gleinstätten: - Revenues: € 2,148.4 mn | +6% - EBITDA: € 248.1 mn | +18% CBME: organic volume growth in stable market environment | Price increases in line with c
Slide 3: Earnings improvement in Q3 2014
Earnings improvement in Q3 2014 Earnings improvement in Q3 2014 - Revenues: € 798.9 mn (Q3 13: € 773.4 mn | +3%) - EBITDA: € 113.0 mn (Q3 13: € 104.2 mn | +8%) Growth in East European brick and pipe business Volume and earnings decline in West European brick and pipe business due to decline in
Slide 4: Income statement Q1-3 2014
Results Q1-3 2014 7 Income statement Q1-3 2014 in € mn 1-9/2013 1-9/2014 Chg. in % Revenues 2,034.0 2,148.4 +6 Operating EBITDA 1) 210.5 248.1 +18 Operating EBITDA margin 10.3% 11.5% - Depreciation -155.7 -158.9 -2 EBIT 54.8 89.2 +63 1) Adjusted for non-recurring income and expenses 8
Slide 5: Profit after tax: € 55.7 mn in Q1-3 2014
Profit after tax: € 55.7 mn in Q1-3 2014 in € mn 1-9/2013 1-9/2014 Chg. in % EBIT 54.8 89.2 +63 Income from investments in associates -1.7 -1.4 +19 Interest and similar income 5.1 6.1 +19 Interest and similar expenses -44.9 -46.4 -3 Other financial results -6.9 22.2 >100 Financial results -48.4 -19.
Slide 6: Slightly higher average prices in Q1-3 2014
Slightly higher average prices in Q1-3 2014 Clay Building Materials Europe - Western Europe: Price increases above cost inflation despite in part strong market declines in F, NL and IT - Eastern Europe: Stable average prices in still challenging market environment North America - Price pressure
Slide 7: Results Q1-3 2014 by segment
Results Q1-3 2014 by segment Revenues: € 2,148.4 mn | +6% EBITDA: € 248.1 mn | +18% Clay Building Pipes & Pavers North Holding Materials Europe Europe America & Others 1,000 867 800 600 440 in € n 400 362 300 176 200 123 52 44 36 7 4 0 -15 -200 CBM Western CBM Eastern P&P Western P&P Eastern North A
Slide 8: EBITDA change by segment; Cash flow development
EBITDA change by segment 300 +22.3 +7.9 248.1 250 +21.1 -2.4 -8.2 -3.2 210.5 200 in € mn 150 100 50 0 EBITDA CBM CBM P&P P&P North Holding & EBITDA Q1-3 2013 WE EE WE EE America Others Q1-3 2014 Note: EBITDA adjusted for non-recurring income and expenses CBM…Clay Building Materials | P&P…Pipes & Pav
Slide 9: Working capital build-up due to increase in inventories
Working capital build-up due to increase in inventories in € mn 1-9/2013 1-9/2014 Chg. in % Increase/decrease in inventories 6.9 -49.5 <-100 Increase/decrease in trade receivables -131.3 -137.8 -5 Increase/decrease in trade payables 3.7 -15.3 <-100 Increase/decrease in other net current assets 10.0
Slide 10: Development of net debt; Strong balance sheet
Development of net debt 800 +97.2 741.7 +158.3 693.4 700 +61.0 -2.6 600 538.9 +52.3 -84.1 +45.8 -23.2 500 in € mn 400 -101.9 300 200 100 0 * Including dividends paid, changes in non-controlling interests and dividend payments from associates 19 Strong balance sheet Chg. in % in € mn 30/9/2013 31/12/
Slide 11: Strong liquidity and balanced financing structure
Strong liquidity and balanced financing structure Cash 30/9/2014: € 157.3 mn Financing structure: 600 500 400 in € mn 300 200 Hybrid 2007 Hybrid 100 2014 0 2014 2015 2016 2017 2018 2019 2020 2021+ WB Maturities Cash Balance First-Call Date Hybrid Bonds Targets: 9 Maintain financial discipline 9
Slide 12: Clay Building Materials Western Europe
Wienerberger segments 23 Clay Building Materials Western Europe Results 1-9/2014 Ext. revenues Operating EBITDA CBM Western Europe (in € mn) 1-9/2013 1-9/2014 Chg. in % 1-9/2014 1-9/2014 External revenues 822.6 866.8 +5 Operating EBITDA 1) 101.4 122.5 +21 40% 49% Operating EBITDA margin 12.3% 14.1%
Slide 13: Clay Building Materials Eastern Europe; Pipes & Pavers Western Europe
Clay Building Materials Eastern Europe Results 1-9/2014 Ext. revenues Operating EBITDA CBM Eastern Europe (in € mn) 1-9/2013 1-9/2014 Chg. in % 1-9/2014 1-9/2014 External revenues 242.8 299.6 +23 Operating EBITDA 1) 30.1 52.4 +74 Operating EBITDA margin 12.4% 17.5% - Operating EBIT 1) 0.1 20.6 >100
Slide 14: Pipes & Pavers Eastern Europe; North America
Pipes & Pavers Eastern Europe Results 1-9/2014 Ext. revenues Operating EBITDA P&P Eastern Europe (in € mn) 1-9/2013 1-9/2014 Chg. in % 1-9/2014 1-9/2014 External revenues 331.8 361.6 +9 15% Operating EBITDA 1) 28.2 36.2 +28 17% Operating EBITDA margin 8.5% 10.0% - Operating EBIT 1) 11.8 19.7 +67 1)
Slide 15: Outlook 2014: Stable housing starts in Europe
Outlook 2014 29 Stable development of housing starts in Europe | Growth in USA WB management forecast: SFH starts 2014 Mountain Region Midwest +16% -15% Mid-Atlantic +3% +3% -2% -6% +10% -2% 0% -22% -8% 0% +2% Southeast -11% Source: Management estimate (housing starts) -5% Market growth (>2%) Stable
Slide 16: Moderate increase in RMI spending expected
Moderate increase in RMI spending expected Euroconstruct forecast: RMI spending in residential construction 2014 Euroconstruct expects a slight decrease in the Czech Republic and France +2% +2% +1% +3% All other countries +3% -3% expected to develop +1% +1% 0% stable to slightly -1% +2% positive
Slide 17: North America and Pipes & Pavers Europe: Outlook 2014
North America: Outlook 2014 Bricks Double digit volume growth in the USA Flexible pricing policy results in slight price decline Earnings decrease in Canada Pipes High capacity utilization and stable market development | Plant extension according to plan Earnings decline due to negative ch
Slide 18: Thank you for your attention!
Assumptions for Wienerberger Group 2014 incl. consolidation of Tondach Gleinstätten as of July 2014 Group EBITDA ~ € 315 mn Real-estate Sales ~ € 10 mn EBITDA contribution (part of EBITDA-target) Prices | Cost Inflation ~ 1.0% Price increase | ~ 1.5% Cost inflation Normal Capex ~ € 130 mn Growth Cap