2007: Goals surpassed

Presentation to Investors and Analysts
Final results for 2007 | Outlook on 2008
March, 2008
2007: Goals surpassed
Increase in earnings > 15%
Growth investments € 525 million
2
1
Market Development 2007
ƒ Central-East Europe strong growth:
- Poland, Romania, Bulgaria:
- Czech Republic, Slovakia:
great demand
growth in revenues and earnings
ƒ North-West Europe at high level:
- France, Belgium:
- UK, Netherlands:
ongoing good development
consolidation effects
ƒ Germany disappointing development
.
ƒ USA weak development
3
2007 at a Glance
Revenues:
EBITDA:
€ 2,477.3 mill.
€ 551.2 mill.
(06: 2,225.0 | +11%)
(06: 471.9 | +17%)
Profit after tax:
Earnings per share:
€ 295.8 mill.
€ 3.46
(06: 218.3 | +36%)
(06: 2.95 | +17%)
1) Earnings per share 2007 after hybrid coupon
4
2
Development of Group Revenues 2007
ƒ 11% growth in revenues or + € 252 mill.
ƒ Price effect
ƒ Volume effect
approx. 9%
approx. 2%
Product mix
Price adjustments
5
Results for 2007 by Segment
Revenues: € 2,477.3 mill. | +11%
North America
13%
Investments & Other
-2%
Central-East
Europe
34%
Central-West
Europe
18%
EBITDA: € 551.2 mill. | +17%
North America
6%
Central-West
Europe
14%
Investments & Other
-4%
Central-East
Europe
51%
North-West
Europe
33%
North-West
Europe
37%
6
3
Results for 2006 by Product Group
Revenues: € 2,477.3 mill. | +11%
EBITDA: € 551.2 mill. | +17%
Surface
6%
Surface
8%
Roof
19%
Other - 6%
Roof
25%
Wall
36%
Wall
52%
Facade
23%
Facade
37%
7
Growth through Large Acquisitions…
Acquisition
Revenues 06 EBITDA 06
Rationale of acquisition
Arriscraft
€ 52.7 mill.
ƒ Market entry Canada
€ 7.5 mill.
CAN
Baggeridge
ƒ Complementary products
€ 81.0 mill.
€ 11.0 mill.
UK
Korevaar
NL
ƒ Strengthen our market position
ƒ National market coverage
€ 26.5 mill.
€ 3.5 mill.
ƒ Expansion of the clay paver
segment in the Netherlands
8
4
…and Bolt-on Projects
Project
Region
Country
Type
Project description
Triteni
CEE
Romania
New
construction
New capacity in Romania
Lukovit
CEE
Bulgaria
New
construction
First site in Bulgaria
Dobre
CEE
Poland
Extension
Expansion of capacity in Poland
Mali Idjos
CEE
Serbia
Acquisition
Extension
Market entry Serbia
Expansion of capacity projected
RIL S.p.a
CWE
Italy
Acquisition
Expansion Northern Italy
Belgium
Extension
Reorganization of hollow brick
business
Zonnebeke NWE
9
Final Results for 2007
5
Strong Improvement of Earnings in 2007
in € mill.
2006
2007
Chg. %
Revenues
2,225.0
2,477.3
+11
EBITDA
471.9
551.2
+17
EBITDA margin
21.2%
22.3%
-
EBIT
299.6
353.1
+18
Financial results
-20.2
5.3
Profit after tax
218.3
295.8
+36
-29.1
-
266.7
+22
Hybrid coupon
-
Profit after tax and hybrid
218.3
-
11
EBITDA Change by Segment
EBITDA development 2007 in € mill.
+122
+9
+17%
-20
-28
-4
551
472
EBITDA
2006
Central-East
Europe1)
North-West
Europe1)
Central-West
North
Europe
America
Investments &
Other
EBITDA
2007
1)
For organizational reasons, Finland and the Baltic States were transferred to the Central-East Europe segment as of January 1, 2007 (formerly: North-West
Europe); the comparable figures from prior reporting periods were adjusted accordingly
12
6
Financial Results
in € mill.
2006
Income from investments in associates
Interest result
Other financial results
Financial results
2007
Chg. in %
26.1
27.6
+6
-48.2
-43.1
+11
1.9
20.7
>100
-20.2
5.2
>100
13
Growth Investments of € 525 mill.
in € mill.
2006
2007
Chg. in %
Growth investments
430
525
+22
- Bolt-on Projects
200
297
+49
- Strategic acquisitions 1)
230
228
-1
Maintenance capex
100
120
+20
Total investments
530
645
+22
Maintenance capex:
1)
61% of depreciation (€ 198 mill.)
Strategic acquisitions 2006 including asset deals
14
7
Financing Growth
Hybrid bond
ƒ February 2007
ƒ Coupon 6.5% annually
ƒ Volume: € 500 mill.
Financing growth 2007
Capital increase
ƒ October 2007
ƒ 9.8 mill. new shares
Financing accelerated
growth program
(13% of share capital)
ƒ Volume: € 424 mill. (net proceeds)
15
Development of Net Debt
+94.9
+645.6
1,159.8
-24.9
-424.1
-479.0
in € mill.
-492.9
+87.4
Net Debt
31.12.2006
Gross
cash flow
Total
investments
Asset
disposals
Corporate
dividend
Capital
increase
Hybrid
bond
Working
capital and
other
566.8
Net Debt
31.12.2007
16
8
Balance Sheet Ratios
in € mill.
2006
2007
Chg. in %
Equity 1)
1,591.4
2,672.7
+68
Net debt
1,159.8
566.8
-51
43%
62%
-
Equity ratio
Gearing 2)
1)
2)
73%
21%
Hybrid (50% / 50%)
-
34%
Hybrid 100% debt
-
49%
Hybrid 100% equity
including minority interest
according to IFRS hybrid 100% as equity
17
Balance Sheet Structure
EQUITY and
LIABILITIES
ASSETS
5
4
0.5
current
provisions and liabilities
1.1
non-current
provisions and liabilities
2.7
equity and
minorities
1.4
current
assets
1.0
1.1
in € bn.
3
1.1
2
1
non-current
assets
2.6
3.0
1.6
0
2006
2007
2006
2007
18
9
Cash Flow Statement
in € mill.
2006
2007
Chg. in %
Gross cash flow
370.8
479.0
+29
Chg. in working capital
-15.1
-104.8
>100
-100.2
-120.2
+20
16.6
39.7
>100
272.1
293.7
+8
Maintenance capex
Divestments and Other
Free cash flow
19
Working Capital
in € mill.
2006
2007
Working capital
531.8
694.4
Working capital to revenues
24%
28%
ƒ Increase working capital particularly due to an increase in inventories:
- Consolidation effects
- Central-East Europe and North-West Europe to ensure ability to deliver
- Central-West Europe and North America due to weak market development
20
10
Treasury Ratios
in € mill.
2006
2007
Target
Net Debt / EBITDA
2.5
1.0
<3.0%
EBITDA / Interest result
9.8
12.8
>5.8%
EBIT / Interest result
6.2
8.2
>2.75
FFO / Net Debt
28%
48%
>30%
RCF / Net Debt
21%
37%
>20%
21
Wienerberger Value Management
ROCE 1):
CFROI 2):
10.1%
13.0%
(2006: 9.4%)
(2006: 12.6%)
WACC 2007: 7.5%
1)
2)
Adjusted for non-recurring income and expenses; calculation based on average capital employed
Adjusted for non-recurring income and expenses; calculation based on average historical capital employed
22
11
Dividend Recommendation for 2007
Dividend:
Yield:
€ 1.45
Av. share price: 3.0%
(06: € 1.30 | +12%)
31.12.07: 3.8%
23
Wienerberger Segments
12
Central-East Europe I
ƒ Poland:
- Ongoing sound growth
- Maximum capacity utilization
- New capacities at the end of 2008
ƒ Czech Republic:
- Stable new residential construction
- Introduction of premium products
ƒ Slovakia:
- Strong domestic demand (intended introduction of EURO for 2009)
ƒ Hungary:
- Uncertainty due to budget deficits
- Exports to Romania/Ukraine
25
Central-East Europe II
ƒ Romania:
ƒ
ƒ
ƒ
ƒ
- Full utilization of Triteni plant
- Strong growth from low level
Bulgaria:
- New plant in Lukovit
- Strong growth from low level
Croatia/Slovenia:
- Positive market development
Serbia:
- Market entry through acquisition of Mali Idjos
Russia:
- Dynamic market
- Full operation of Kiprewo I
- Further sites under construction (Kiprewo II, Kazan)
26
13
Central-West Europe
ƒ Switzerland:
- Slight decline from high level
ƒ Italy:
- Slow down of market
- Introduction of planed ground blocks
- Consolidation RIL (Northern Italy)
ƒ Germany:
- 2007: New residential construction on a historical low
- 2008: (Slight) recovery possible
- Stable renovation market (clay roof tiles)
- Exports to Poland and the Czech Republic
27
North-West Europe I
ƒ France:
- New residential construction stable on high level
- Hollow bricks are gaining market share
- Sound renovation market
ƒ Belgium:
- Slow down in new residential construction from high level
- Reorganization of hollow brick business
- Positive renovation market
ƒ Netherlands:
- Slightly positive development of domestic demand
- Consolidation of Korevaar (clay paver)
28
14
North-West Europe II
ƒ UK:
- Ongoing weak residential construction market Ù trend to detached houses
- Consolidation Baggeridge
ƒ Acquisition of Sandtoft (clay roof tiles)
- January 2008: Acquisition of a 74% stake in Sandtoft
- Third largest roof tile producer in UK
- 4 sites (Sandtoft, Broomfleet, Goxhill, Heckmondwike)
- Revenues 2007: GBP 42 mill.
Ä Sandtoft as a platform for further growth in the British clay roof tile market
29
North America
ƒ Market development:
- Further decline in the market expected to 1.08 mill. housing starts
- Recovery not before 2009
- Long term growth market (population growth | renovation)
ƒ Wienerberger:
- Significant increase in earnings in 2008 due to:
-
Capacity adjustments in 2007
Consolidation effects Arriscraft
Reorganization of Robinson
Cost optimization
30
15
Summary
ƒ Central-East Europe
further growth expected
ƒ Central-West Europe
overall stable
ƒ North-West Europe
at a good level
ƒ North America
ongoing market weakness, but Wienerberger
expects increase in earnings
Above-average growth in EBITDA (ca. 10%) expected
(EPS 2008: <10% due to capital increase)
31
Wienerberger‘s Growth Strategy
16
Wienerberger‘s Growth Model
Wienerberger
Bolt-on projects and
strategic projects
Wall | Facade| Roof | Surface
Free Cash Flow
Investors
Growth
ƒ Bolt-on projects
ƒ Strategic projects /
Dividend
ƒ Offer attractive dividend
payments to investors
Payback debt
ƒ Maintain healthy gearing
ratios and balance sheet
ƒ Maintain solid investment
larger acquisitions
grade rating (currently BBB /
Baa2)
33
Planned Investments 2008
ƒ Bolt-on projects
> € 400 mill.
ƒ Strategic acquisitions
~ € 100 mill.
ƒ Maintenance capex
~ € 125 mill.
Total investment volume 2008
> € 600 mill.
34
17
Growth Program with Focus on
Central-East Europe
ƒ Construction of about 25 brick plants in Central-East Europe by 2012:
- 8 plants in Russia
- 17 plants in Eastern Europe: all above in
-
Poland
Romania
Bulgaria
Balkans
Ukraine
8
17
ƒ 6 new concrete paver plants (Semmelrock)
35
Growth Program 2009+
Bolt-on Projects / Growth Projects
ƒ Expansion Eastern Europe
- Focus: Russia, Poland
Romania, Bulgaria
.Balkans, Ukraine
.
Strategic Projects
ƒ Medium-sized acquisitions
- Western & Eastern Europe,
North America
ƒ Development Traditional Markets
- Focus: Growth of hollow bricks in
Western Europe
?
ƒ Market Entry India
- Set-up of a strategic position
€ 300 mill. annually
36
18
Our Targets Remain Unchanged
ƒ Above average growth in EBITDA & EPS (ca. 10% p.a.)
ƒ ROCE mid-term: ≥10% (WACC = 7.5%)
ƒ Maintain investment grade rating
37
Wienerberger and The Financial Markets
19
Volatile Stock Markets
ƒ Fear of recession in the USA triggers uncertainty
ƒ Capital market overall – especially the construction materials sector – is impacted
by the current crisis in the USA
ƒ Partly panic selling at the stock exchanges
ƒ Share prices of companies not linked to positive business development
e.g. Wienerberger 2007: earning + >15% Ä share price declined by >15 %
39
Price Development of the Wienerberger Share
Since January 2007
130%
Wienerberger
ATX
Dow Jones Euro Stoxx Construction & Materials
120%
110%
100%
90%
EBITDA
+ 17%
Share price - 16%
80%
.
70%
Jän.07
Jan.
07
Feb.07
Feb.07
Mär.07
March
07
Apr.07
Apr.07
Mai.07
May
07
Jun.07
June
07
Jul.07
July
07
Aug.07
Aug.
07
Sep.07
Sep. 07
Okt.07
Oct.07
Nov.07
Nov.07
Dez.07
Dec.07
40
20
Strong Growth in the Past…
Growth revenues p.a. (in € mill.)1)
C A GR
: 13%
2.478
2.225
1.955
1.759
1.343
2002
1)
1.544
2003
2004
2005
2006
2007
Note: Pipelife at equity presented for all years
41
…and Even Higher EBITDA Growth
EBITDA development p.a. (in € mill.) 1)
CAGR
: 15 %
405
428
2004
2005
472
551
335
273
2002
1)
2003
2006
2007
Adjusted for non-recurring expenditures and income
42
21
Earnings per Share 2002 – 2007
4,00
%
R : 17
∅-CAG
3,50
3,46 1)
3,02
3,00
2,54
2,67
2,50
2,01
2,00
1,57
1,50
1,00
0,50
0,00
2002
1)
After hybrid coupon
2003
2004
2005
2006
2007
adjusted EPS in €
43
Wienerberger is Well Positioned
Wienerberger…
ƒ …has very sound fundamentals
ƒ …has had a strong track record for many years
ƒ …has a clearly-defined strategy with focus on core business
ƒ …has secured financing for future growth
Wienerberger will maintain its successful growth course and
continue to focus on its operating business
44
22
45
Appendix: Wienerberger Group Today
23
Profitable Product Groups in Core Business
Hollow Brick (Wall)
No. 1 worldwide
Facing Brick (Facade)
No. 1 in Europe, Co-Leader in USA
Revenues: 36% EBITDA: 52% EBITDA margin: 32%
Revenues: 37% EBITDA: 23% EBITDA margin: 14%
Roof Tiles (Roof)
No. 2 in Europe 1)
Pavers (Surface)
Leading position in Europe
Revenues: 19% EBITDA: 25% EBITDA margin: 28%
Revenues: 8%
EBITDA: 6%
EBITDA margin: 17%
1) concerning Clay Roof Tiles
47
Wienerberger Brick Markets in Europe
1
Europe (total): No. 1
1
ƒ Hollow Bricks:
- No competing international groups
- Mainly family businesses (local producers)
- Wienerberger as only multinational player
33
ƒ Facing Bricks:
- Family businesses (local producers) as main
competitors
- CRH und Hanson in selected countries
1
2 1
11
1
1
1
1
2
1
1
1
1
1
4
1
1
1
1 1
1
1 1 1
1
1 11 1
41 1
1
1
2
Wienerberger plants
Wienerberger export markets
#
Marktpositionen positions with
hollow bricks and / or facing bricks
48
24
Wienerberger Roofing Markets in Europe
Europe (total): No. 2
in clay roof tiles
ƒ Major competitors: Monier (formerly
33
Lafarge Roofing), Etex, Imerys, Terreal
ƒ Some privately owned mid-size
competitors in Germany
Wienerberger plants
Wienerberger export markets
JVs Bramac (50%) and / orTondach Gleinstätten (25%)
#
Market positions in clay roof tiles
and / or concrete roof tiles
49
Wienerberger Brick markets in North America
ƒ USA: 5 major players
totaling ~65% of market
share
Quebec
ƒ Main competitors:
Ontario
Boral, ACME, Hanson
and CRH
1
ƒ Canada: Market entry
in 2007
Midwest
20%
5
1
West
3%
6
2
3
1
1
2
1
1
1
1
4
5
6
4
Northeast
7%
3
2
1
6
Southwest
20%
3
2
1
Southeast
50%
4
Note: Data below regions = share of total brick consumption within USA
# Market positions with facing bricks
50
25
Wienerberger Shareholder Structure
By country
Switzerland
2%
France
3%
Other
5%
ƒ 100% free float
USA
32%
Northern Europe
4%
Germany
7%
ƒ 3 larger institutional investors:
- AIM Trimark Investments, CAN,
owns more than 10% of the shares
- Dodge & Cox, USA,
Austria
17%
owns more than 5% of the shares
Canada
13%
UK & Ireland
17%
- Capital Research & Management Company, USA,
owns more than 5% of the shares
Status: February 2008 | 83.9 mill. shares issued
51
26