Wienerberger fy 2013

1

Investor and Analyst PresentationFinancial Results 2013February 27, 2014

2

DisclaimerCautionary 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 should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.

Certain statements contained in this document may be statements of future expectations and other forward-looking statements that are based on management‘s current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

None of Wienerberger AG or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document.

This document does not constitute an offer or invitation to purchase or subscribe for any securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

2

3

Highlights 2013

Sound revenue and earnings growth despite difficult market environment and unfavorable weather at the beginning of the year

Successfully met EBITDA goal: € 267 mn

Execution of restructuring program and sale of non-operating assets according to plan

€ 63 mn reduction of net debt causes decline of net debt / op. EBITDA ratio to 2.0 years

Dividend proposal: 12 Eurocent per share

4

Difficult Market Environment in 2013

Source: Management expectation (SFH starts; SFH permits in GER, CH, HU)

-8%

-1%-5%

-17%+9%

-5%-3%

-6%

-11%

-22%

-5%

WB management assessment:SFH starts 2013

Mid-AtlanticMidwest

Southeast

Mountain Region

SFH +15%

Source: U.S. Census Bureau (growth rate 2013)

Partially significant declines in F, NL, B, PL,

CZ and HU

GER, RO and BU stable | Positive development in UK und RU

USA: Positive development

Market growth (>2%)

Stable development

Market decline (<-2%)

3

5

Volumes Prices

Clay Building Materials WE

Clay Building Materials EE

North America

Pipelife

Steinzeug-Keramo

Semmelrock

Diverse Market Impact on Business Units

6

Successful Diversification Strategy YieldsStabilization of Earnings Development

CBM Europe P&P Europe North America

184 171

0

40

80

120

160

200

2012 2013

10 13

0

40

80

120

160

200

2012 2013

67

100

0

40

80

120

160

200

2012 2013

39%53%

8%

Re

ven

ue

s 2

01

3o

p. E

BIT

DA

in €

mn

CBM…Clay Building Materials | P&P…Pipes & Pavers

4

7

Revenue:

€ 2,662.9 mn(2012: € 2,355.5 mn | +13%)

Operating EBITDA 1):

€ 266.5 mn(2012: € 245.5 mn | +9%)

Sound Increase in Revenues and Earnings

Net Debt:

€ 538.9 mn (31/12/12: € 602.0 mn | -10%)

Total Investments:

€ 106.7 mn (2012: € 268.7 mn | -60%)

1) Adjusted for non-recurring income and expenses

8

Earnings Increase in Pipes & Pavers Europe Division due to Consolidation of Pipelife

Significant revenue and earnings growth:

- Ext. revenues 2013: € 1,029 mn (PY: € 711 mn)

- EBITDA 2013 : € 100 mn (PY: € 67 mn)

- Consolidation effect Pipelife: € 348 mn | € 31 mn

Pipelife: Earnings growth in the project business and in Eastern Europe compensate decline in Western Europe

Steinzeug-Keramo: One-time costs cause earnings decline | Stable organic development

Semmelrock: Cost savings result in earnings growth despite volume declines

5

9

Strong Q4 in CBME Division Cannot Compensate H1 Decline

H2 shows volume growth in all product groups and an increase in operating EBITDA

Moderate volume decline in 2013 due to unfavorable weather conditions at the beginning of the year and declines in several core markets

Prices are nearly stable: Price increases in line with cost inflation in Western Europe | Proactive price adjustments result in price declines in Eastern Europe

Cost savings in CBME are on track

10

Recovery on the US ResidentialConstruction Market

Brick business records strong volumegrowth in H2 after moderate growth in H1 | 2013 brick volume growth amounted to 12%

Price pressure in a number of regional brick markets results in slightly lower prices

Plastic pipes: Moderate earnings decline as very strong prior year results remain unmatched

6

11


41%


12%

Pipes & PaversWE 22%

Pipes & PaversEE 17%

North America8%

Holding & Others

0%

Results 2013 by Segment



49%


15%

Pipes & PaversWE 25%

Pipes & PaversEE 13%

North America5%

Holding & Others

-7%

Revenues: € 2,662.9 mn | +13% EBITDA 1): € 266.5 mn | +9%

WE…Western Europe | EE…Eastern Europe

12

Results 2013 by Product

1) Adjusted for non-recurring income and expenses2) Includes holding costs of divisions Clay Building Materials Europe und Pipes & Pavers Europe

Wall26%

Roof31%Facade

16%

Surface4%

Holding & Others 2)

-13%

Pipes36%

Revenues: € 2,662.9 mn | +13% EBITDA 1): € 266.5 mn | +9%

Wall 23%

Roof15%

Facade22%

Surface4%

Pipes36%

Holding & Others

0%

7

13

Wienerberger Products and Projects

14

Ceramic Pipes from Steinzeug-Keramo are Cradle to Cradle® Certified

Our ceramic pipes meet demanding ecological criteria of the Cradle to Cradle® certification

Ceramic pipes

- Are made from natural raw materials only

- Are recyclable

- Create value through their durability

STEINZEUG-KERAMO. INSPIRED BY NATURE.

8

15

New Sewage System in Mikolow (PL)

Polish city Mikolow trusts in Steinzeug-Keramo products

In total 175 km of ceramic pipes were laid to build a new sewage system

Main decision criteria for the local authority were the durability and the resistance to chemical and physical impacts

16

Semmelrock Supplies New Central Railway Station in Vienna

Key data

Surface area: 28,000 m² Product: Tec Line Paver Specialties:

− Einstein® System − Semmelrock Premium

Protect®

− Luminance contrast− Tactile guidance system

Central Railway Station Vienna © ÖBB, Roman Bönsch

9

17

ARTE Pavers

ARTE Pavers create an impressive surface image - no matter if used to resemble traditional style or if used as contrast to modern architecture. At first glance the surface is made up of many individual stones. Indeed it is easily applied because it consists of only ten different paving elements.

ARTE Pavers Combine Tradition andModern Design

Békéscsaba, Hungary

Baden, Austria

18

Pipelife Holds the World Record for Extruded Plastic Pipes

Pipelife is the only producer of Long Length Large Diameter PE pipe systems

The innovative pipes with a diameter of up to 2.5 meters and a length of up to 600 meters are shipped worldwide, e.g. to:

- Ghana

- Algeria

- Venezuela

- Spain

10

19

Wienerberger Invests in Production Capacity for Insulation Filled Clay Blocks in Austria

Investment in a production line for the top product Porotherm W.i. in Haiding, Austria

Stone wool is integrated in the clay block as insulation material

Construction time and project costs are reduced as no additional exterior insulation is required

Most modern production line in the Wienerberger Group

100% added value in Austria

20

Wienerberger Bricks for Multistory Student Dormitory

Multistory student dormitory with 213 housing units in Angers, France

Meets low energy standard

Location between bypass road and tramline posed specific challenge with regards to sound insulation

Massive brick walls made from insulation filled clay blocks Porotherm GFR20 Th+

Project size: 5,000 m2

11

21

Office Building Without Heating System

Office Building without heating system or air conditioning in Lustenau, Austria

People, lamps and computers are the only heat sources

Massive brick walls made from Porotherm N+F, high ceilings and deep embrasures maintain room temperatures of 22-26°C

22

Format Follows Function

Modern annex to the Paasitorni Hotel in Helsinki, Finland

Facing brick „Tuohi Retro“ with integrated long holes was custom designed for this project

In the development process the format followed the function to create light-flooded combs

Project size: 1,400 m² facade

12

23

Modern Flat Roof with Koramic Roof Tiles

Flat roofs with a pitch as low as 10° can be realized with clay roof tiles

In Oldenburg (GER) the large format clay roof tileAlegra 8 from Koramic was used for this project

The Sturmfix-system guarantees a long life time despite the harsh weather of North Sea storms

24

Clay roof tiles for Sotchi

Clay roof tiles cover the Olympic media village and adjacent buildings of the sports and tourism complex „GornajaKarusel“

Tondach Gleinstätten develops „VENUS RV 3“ roof tile for this contract

Project size: 160,000 m² clay roof tiles

13

25

Results 2013

26

1,600

1,800

2,000

2,200

2,400

2,600

2,800

Revenue2012

SalesVolume

SalesPrices

FX-Effect

Pipelife Revenue2013

in €

mn

Consolidation Effect OutweighsOrganic Revenue Decline in 2013

+13%2,355.5

-1%

0%

-1%

2,662.9+15%

Revenues increased by 13%

1% organic volume decline

Stable average prices

-1% FX effect

15% revenue change related to Pipelife

14

27

Stable Prices in Challenging Environment 2013

Clay Building Materials Europe

- Western Europe: Price increases in line with cost inflation despite challenging market conditions

- Eastern Europe: Continued price pressure for building materials as a result of demanding market conditions especially in PL, CZ, SK and HU | Wienerberger utilizes cost advantages for proactive price strategy in selected markets to strengthen market positions

North America

- Prices slightly below prior year levels as a result of price pressure in a number of regional brick markets and inventory reductions in Q4 2013

Pipelife

- Stable margins due to strict price management

28

Implementation of Restructuring Program on Schedule

Restructuring program in implementation with a focus on the Netherlands, Belgium, Germany and France

Optimization measures include mothballing of plants, reduction of shifts and structural adjustments in administration

Cost savings 2013: € 19.1 mn

Cost savings well on track to reach our target

Target for total cost savings from the restructuring program by the end of 2014: € 50 mn

15

29

Sale of Non-operating Assets

Sale of non-operating assets according to plan

2013 non-operating assets worth € 22.2 mn were sold(Cash in 2013: € 13.6 mn)

Correspondingly € 11.9 mn are reported in other operating income

Target: Proceeds of ~ € 100 mn in the period 2012-2016

30

Income Statement 2013

in € mn 2012 2013 Chg. in %

Revenues 2,355.5 2,662.9 +13

Operating EBITDA 1) 245.5 266.5 +9

Operating EBITDA margin 10.4% 10.0% -

Depreciation -214.5 -211.2 -2

Operating EBIT 1) 31.0 55.3 +78

Operating EBIT margin 1.3% 2.1% -

Restructuring costs and impairment charges to PPE -43.0 0.0 -100

Impairment charges to goodwill -9.8 0.0 -100

Release of a provision for an impending antitrust penalty 0.0 9.4 >100

EBIT -21.7 64.7 >100


16

31

EBITDA1) Change by Segment2012 vs. 2013

210

220

230

240

250

260

270

280

EBITDA2012

CBMWE

CBMEE

P&PWE

P&PEE

NorthAmerica

Holding &Others

EBITDA2013

in €

mn 245.5

-5.4

-6.8

+21.1

266.5+11.8+3.4

-3.1


32

Loss After Tax 2013: € 7.8 mn

in € mn 2012 2013 Chg. in %

EBIT -21.7 64.7 >100

Income from investments in associates 4.5 -2.6 <-100

Interest and similar income 10.7 7.8 -27

Interest and similar expenses -61.4 -63.8 +4

Other financial results 31.7 -9.2 <-100

Financial results -14.5 -67.8 <-100

Profit before tax -36.2 -3.1 +91

Income taxes -4.3 -4.8 +9

Profit after tax 1) -40.5 -7.8 +81

1) Before non-controlling interests and accured hybrid coupon

17

33

Producer of clay roof tiles in Eastern Europe

15 plants in 11 countries

50% Wienerberger | 50% family-owned

Consolidated at equity in financial results

Revenue 2013: ~ € 155 mn

Earnings burdened by difficult market environment in Eastern Europe, structural adjustments and optimization of working capital

Tondach Gleinstätten

34

Schlagmann

Producer of clay blocks

4 plants in the south of Germany (Bavaria)

Modern and efficient plant network

50% Wienerberger | 50% family-owned

Consolidated at equity in financial results

Revenue 2013: ~ € 60 mn

Earnings increase in 2013

18

35

Cash Flow Development

in € mn 2012 2013 Chg. in € mn Chg. in %

Gross cash flow 127.0 164.6 +37.6 +30

Change in working capital 1) 102.5 26.2 -76.3 -74

Normal capex -105.3 -106.0 -0.7 -1

Divestments and other 39.4 8.0 -31.4 -80

Free cash flow 163.6 92.9 -70.7 -43

Growth capex -163.4 -0.7 +162.7 +100

Dividend / hybrid coupon 2) -33.3 -43.1 -9.8 -29

Net cash flow -33.1 49.1 +82.2 >100

1) Adjusted for changes in the consolidation range

2) Including dividends paid to shareholders and dividend payments from associates

36

Working Capital Development

in € mn 2012 2013 Chg. in %

Increase/decrease in inventories 46.8 34.9 -25

Increase/decrease in trade receivables 48.9 -4.3 <-100

Increase/decrease in trade payables -39.3 15.2 >100

Increase/decrease in other net current assets 43.2 -17.0 <-100

Changes in non-cash items resulting from foreign exchange translation 3.1 -2.5 <-100

Change in working capital 102.5 26.2 -74

Pipelife effect 1) +103.1 -2.0 -

Change in working capital excl. Pipelife -0.6 28.2 >100

1) Positive Pipelife effect in 2012 due to timing of first time consolidation (May 31, 2012)

19

37

Total Investments 2013: € 106.7 mn

in € mn 2012 2013 Chg. in %

Normal capex 105.3 106.0 +1

in % of depreciation 54% 54% -

Growth capex 163.4 0.7 -100

thereof Pipelife 146.6 0.0 -100

Total investments 268.7 106.7 -60

Pipelife takeover drives growth capex in 2012

Normal capex remains on previous year level

Normal capex includes besides maintenance also investments for technological upgrades in the production process and product innovation

38

Development of Net Debt in 2013

0

100

200

300

400

500

600

700

31/12/2012 Gross Cash Flow Dividendsreceived/payed

Hybrid Coupon Total Investments Working Capital &Others

31/12/2013

in €

mn -164.6

+10.6+32.5

+106.7

-48.3

538.9

602.0

20

39

in € mn 31/12/2012 30/9/2013 31/12/2013Chg. in % vs.

31/12/2012

Equity 1) 2,364 2,267 2,254 -5

Net debt 602 663 539 -10

Equity ratio 57% 53% 54% -

Gearing 26% 29% 24% -

1) Including non-controlling interest and hybrid capital (100% equity according to IFRS)

Strong Balance Sheet and Low Gearing Ratio

Changes to net debt:

Gross cash flow increased by € 37.6 mn in 2013

Reduction of working capital 2013: € 26.2 mn

40

0

100

200

300

400

500

600

2014 2015 2016 2017 2018 2019 2020+

in €

mn

WB Maturities Cash Balance

Strong Liquidity and Balanced Term Structure

Hybrid

Cash 31/12/2013: € 496.7 mn

Term structure:

Note: Term structure of gross debt; cash position and financial liabilities as of 31/12/2013

Targets:

Maintain financial discipline

Balanced repayment profile

21

41

Treasury Ratios

Treasury Ratios 31/12/2012 30/9/2013 31/12/2013 Covenant

Net debt / operating EBITDA 1) 2.2 2.6 2.0 <3.50

Operating EBITDA 1) / interest result 2) 5.0 4.5 4.8 >3.75

Target level: Net debt / operating EBITDA < 2.5 at year-end

1) Adjusted for non-recurring income and expenses; Calculated based on 12-month EBITDA2) Calculated based on 12-month interest result3) Calculated based on pro-forma 12-month EBITDA and interest result of Pipelife

Comfortably in-line with covenants

3)

42

Wienerberger Segments

22

43

Clay Building Materials Western EuropeResults 2013


CBM Western Europe (in € mn) 2012 2013 Chg. in %

External revenues 1,129.6 1,089.9 -4

Operating EBITDA 1) 136.5 131.1 -4


Operating EBIT 1) 31.8 34.4 +8

Continuation of difficult market environment in F, NL und B with in part significant declines in new residential construction activity

GER: Positive trend of SFH building permits | SFH Housing starts are slightly below the 2012 level | Facings bricks and roof tiles record declining volumes

UK: Due to „Help to Buy“ stimulus program new residential construction activity continues to recover which results in volume increases

Price increases in-line with cost inflation in large parts

41% 49%

Share of Group Ext. Revs. 2013

Share of Group EBITDA 2013

44

Clay Building Materials Eastern EuropeResults 2013


CBM Eastern Europe (in € mn) 2012 2013 Chg. in %

External revenues 314.2 312.4 -1

Operating EBITDA 1) 47.0 40.2 -14


Operating EBIT 1) 4.6 0.7 -85

12% 15%

Continuation of difficult market environment in PL, CZ, SK and HU results in significant declines in new residential construction activity for SFH

PL: Signs of stabilization towards the end of the year

Wienerberger utilized cost advantages to proactively manage prices | Slight growth of clay block volumes | Strengthening of market positions

Investments in production facilities for innovative products in AT and CZ

Positive development in Russia continued

Stabilization in RO and BU confirmed



23

45

Pipes & Pavers Western EuropeResults 2013

P&P Western Europe (in € mn) 2012 2013 Chg. in %

External revenues 392.2 592.8 +51



Operating EBIT 1) 27.9 39.3 +401) Adjusted for non-recurring income and expenses

22%25%

Pipelife

Stable sales volumes | International project business compensates declines in F and NL | Moderate increase in operating EBITDA

Mild weather supports revenue and earnings increase in Q4

Steinzeug-Keramo

Stable revenues due to stable volumes and prices

Costs for structural adjustments in production cause decrease in earnings



46

Pipes & Pavers Eastern EuropeResults 2013

P&P Eastern Europe (in € mn) 2012 2013 Chg. in %




Operating EBIT 1) 3.7 12.9 >1001) Adjusted for non-recurring income and expenses

13%17%

Pipelife

Volume growth in challenging market environment in 2013

Earnings and margin growth as a result of higher sales volumes

Semmelrock

Challenging markets in Eastern Europe and long winter at the beginning of the year result in double digit volume decline

Cost savings result in earnings growth despite lower sales volumes



24

47

North AmericaResults 2013

North America (in € mn) 2012 2013 Chg. in %




Operating EBIT 1) -14.7 -9.3 +371) Adjusted for non-recurring income and expenses

8% 5%

Moderate growth of housing starts for single family homes in our relevant regional markets

Slight volume growth in H1 (activity burdened by long winter)

Significant increase in brick volumes in H2

Reduction of inventories in positive Q4 market environment

Price pressure in individual markets results in slightly lower average prices

Plastic pipe business posts moderate earnings decline in comparison to the very strong results of 2012



48

Outlook 2014

25

49

Stabilization to Slight Growth of Housing Starts in Europe | Growth in the USA

Source: Management expectation (SFH starts; SFH permits in GER, CH, HU)

-3%

+2%-1%

-9%+10%

0%-2%

0%

+5%

-14%

-1%

WB management forecast :SFH starts 2014

Mid-AtlanticMidwest

Southeast

Mountain Region

SFH +15%

Source: Management expectation (SFH starts)

Market growth (>2%)

Stable development


+2%

+2%

+5%-4%

50

Moderate Growth of RMI Spending Expected

Euroconstruct forecast:RMI spending in residential construction 2014

Source: Euroconstruct December 2013 (RMI spending in residential construction)

-1%

+1%+3%+2%

+2%

+1%+5%

-2%0%

+3%

+8%

+2%

Euroconstruct expects a slight decrease in the Czech Republic and France

All other countries show a stable to slightly positive development of RMI spending

Market growth (>2%)

Stable development


26

51

Clay Building Materials Europe:Outlook 2014

Moderate volume growth expected in 2014 | Weak prior year basis in H1

Price increases should cover cost inflation- Expectation: Price increases ~ 1.5% | Cost inflation ~ 2.0%

- In Eastern Europe we must wait for the start of the construction season to have a reliable assessment of the pricing environment

Savings from cost optimization program will be realized according to plan: ~ € 17 mn in 2014 | ~ € 50 mn in the period 2012-2014

EBITDA contribution of ~ € 10 mn from the sale of non-operating assets

Revenue and earnings growth

52

North America:Outlook 2014

Bricks

Double digit volume growth

Flexible price policy of H2 2013 will carry over to 2014

Pipes

Stable earnings

Revenue and earnings growth

27

53

Pipes & Pavers Europe:Outlook 2014

Pipelife

- Stable development of European core markets

- 2013 record result in project business is unlikely to be matched in 2014

- Slight earnings decline possible

Steinzeug-Keramo

- Slight revenue growth

- Significant earnings growth as non-recurring costs do not apply in 2014

Semmelrock- Revenue and earnings growth

- Cost saving measures continue to unfold and market environment is stabilizing

Stable to slightly positive earnings development

54

Assumptions for Wienerberger Group 2014

Depreciation

Normal Capex

Working Capital

~ € 125 mn

~ € 200 mn

Change according to revenue development

Real Estate Sales ~ € 10 mn EBITDA contribution (part of EBITDA-goal)

Prices | Costs ~ 1.5% price increases | ~ 2% cost inflation

Group EBITDA ~ € 300 mn

Cost Savings ~ € 17 mn in 2014 | ~ € 50 mn in total by year-end 2014

Interest Result ~ € 50 mn

28

55

We Have a Clear Strategy

Ready for the future

1

2

3

4

5

Broadening of Core Business

Operational Excellence

Product Innovation & System Supplier

Portfolio Optimization

Clear Strategy for All Business Units

56

Thank you for your attention!

Wienerberger Investor RelationsWienerberger AG, A-1100 Vienna, Wienerbergstrasse 11T +43 1 60192 - 10221, F +43 1 60192 - [email protected] | www.wienerberger.com