Wienerberger fy 2013
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Wienerberger fy 2013 Wienerberger fy 2013 Document Transcript

  • 1 Investor and Analyst Presentation Financial Results 2013 February 27, 2014 2 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 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-Atlantic Midwest 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 Yields Stabilization 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% Revenues2013op.EBITDAin€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 Residential Construction Market  Brick business records strong volume growth 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 Clay Building Materials WE 41% Clay Building Materials EE 12% Pipes & Pavers WE 22% Pipes & Pavers EE 17% North America 8% Holding & Others 0% Results 2013 by Segment 1) Adjusted for non-recurring income and expenses Clay Building Materials WE 49% Clay Building Materials EE 15% Pipes & Pavers WE 25% Pipes & Pavers EE 13% North America 5% 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 expenses 2) Includes holding costs of divisions Clay Building Materials Europe und Pipes & Pavers Europe Wall 26% Roof 31%Facade 16% Surface 4% Holding & Others 2) -13% Pipes 36% Revenues: € 2,662.9 mn | +13% EBITDA 1): € 266.5 mn | +9% Wall 23% Roof 15% Facade 22% Surface 4% Pipes 36% 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 and Modern 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 tile Alegra 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 „Gornaja Karusel“  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 Revenue 2012 Sales Volume Sales Prices FX- Effect Pipelife Revenue 2013 in€mn Consolidation Effect Outweighs Organic 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 1) Adjusted for non-recurring income and expenses
  • 16 31 EBITDA1) Change by Segment 2012 vs. 2013 210 220 230 240 250 260 270 280 EBITDA 2012 CBM WE CBM EE P&P WE P&P EE North America Holding & Others EBITDA 2013 in€mn 245.5 -5.4 -6.8 +21.1 266.5+11.8 +3.4 -3.1 1) Adjusted for non-recurring income and expenses 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 Dividends received/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 31/12/2013 Chg. 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 EBITDA 2) Calculated based on 12-month interest result 3) 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 Europe Results 2013 1) Adjusted for non-recurring income and expenses 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 EBITDA margin 12.1% 12.0% - 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 Europe Results 2013 1) Adjusted for non-recurring income and expenses 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 EBITDA margin 15.0% 12.9% - 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 Share of Group Ext. Revs. 2013 Share of Group EBITDA 2013
  • 23 45 Pipes & Pavers Western Europe Results 2013 P&P Western Europe (in € mn) 2012 2013 Chg. in % External revenues 392.2 592.8 +51 Operating EBITDA 1) 44.1 65.2 +48 Operating EBITDA margin 11.2% 11.0% - Operating EBIT 1) 27.9 39.3 +40 1) 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 Share of Group Ext. Revs. 2013 Share of Group EBITDA 2013 46 Pipes & Pavers Eastern Europe Results 2013 P&P Eastern Europe (in € mn) 2012 2013 Chg. in % External revenues 319.0 436.7 +37 Operating EBITDA 1) 23.3 35.1 +50 Operating EBITDA margin 7.3% 8.0% - Operating EBIT 1) 3.7 12.9 >100 1) 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 Share of Group Ext. Revs. 2013 Share of Group EBITDA 2013
  • 24 47 North America Results 2013 North America (in € mn) 2012 2013 Chg. in % External revenues 193.8 224.7 +16 Operating EBITDA 1) 9.8 13.2 +35 Operating EBITDA margin 5.1% 5.9% - Operating EBIT 1) -14.7 -9.3 +37 1) 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 Share of Group Ext. Revs. 2013 Share of Group EBITDA 2013 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-Atlantic Midwest Southeast Mountain Region SFH +15% Source: Management expectation (SFH starts) Market growth (>2%) Stable development Market decline (<-2%) +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 Market decline (<-2%)
  • 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 Relations Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 T +43 1 60192 - 10221, F +43 1 60192 - 10425 investor@wienerberger.com | www.wienerberger.com