Growth in challenging market environment Revenues +4%

Transcription

1 Results 1. Half Year 2017 Press Conference, August 17, 2017

2 1. Half Year 2017 Key Messages Growth in challenging market environment Revenues +4% Strong earnings power as a result of consistent implementation of our strategy EBITDA +7% Strong increase in net profit Net results +54% 2

3 Clay Building Materials Europe Market developments & results Slight increase in European residential construction activity Diverging market developments in Western Europe Continuation of market recovery in Eastern European core markets Higher sales volumes across all product groups at slightly improved average prices CBM Europe (in mn) 1-6/ /2017 Chg. in % External revenues EBITDA

4 URBAN RESIDENTIAL CONSTRUCTION Energy and resource efficiency Project: The Sustainable Neighbourhood Belgium Architect: Wielfaert Architects Year of completion: 2016 Characteristics: Ecological and affordable housing with passive house standard; BREEAM certified Used products: Terca Eco-brick Linnaeus, Koramic Bellus slate engobe, Koramic Fleece Plus underlay, Porotherm PLS 500, Penter customized waterpermeable pavers Studio Claerhout

5 URBAN RESIDENTIAL CONSTRUCTION Affordability and quality of living Project: Social housing with 70 units - France Architect: Matthieu Gelin, David Lafon Year of completion: 2013 Characteristics: Combination of cost-effectiveness, quality of living and various building units (commercial areas, small and large units) Used products: Argeton Tampa Filip Dujardin

6 URBAN RESIDENTIAL CONSTRUCTION Flexibility and new concepts of living Project: Cluster House, Haus A - Switzerland Architect: Duplex Architekten Year of completion: 2015 Characteristics: New shared living communal kitchens, greenhouses, herb gardens, hotel rooms for guests Used products: Poroton-T7, Poroton-T8, DryFix polyurethane foam Johannes Marburg

7 RENOVATION Renovation demolition new buildings Project: Nieuw Crooswijk - Netherlands Architect: Brink architectuur, JSA Architecten, De Zwarte Hond, Geurst & Schulze architects, NL architects, Drost + van Veen Year of completion: planned 2018 Characteristics: Urban development considering demolition/new buildings and renovation Used Products: Terca Valencia hand-moulded,terca Bologna hand-moulded; both including custom made ballshaped bricks in the same colour Gert Kasak, Statiiv OÜ, Kavakava OÜ

8 RENOVATION Improved building performance Project: Wohnanlage Mettmann - Germany Architect: Werner Kettler Year of completion: 2013 Characteristics: Energy demand halved selling value doubled Used products: Customised product Argeton orange Rainer Rehfeld

9 RENOVATION Historic renovation Project: Corvin castle - Romania Architect: SC Bastioon Proiect SRL Date of completion: 2015 Characteristics: Renovation of the historic look of roof Produkte: Tondach Cedonia Biber Castelul Corvinilor

10 Pipes & Pavers Europe Market developments & results Earnings decline at nearly stable revenues Healthy market environment in Nordic core markets, the Netherlands and Eastern Europe Growth in our activities with plastic pipes and concrete pavers in Eastern Europe as well as in our ceramic pipe business Western European plastic pipe business: Low order intake in international project business Strong increase in raw material prices Challenging market environment in France P&P Europe (in mn) 1-6/ /2017 Chg. in % External revenues EBITDA

11 INFRASTRUCTURE Sewage systems Project: District St. Jürgen in Lübeck - Germany Commissioned by: Lübecker Bauverein eg, Entsorgungsbetriebe Lübeck Characteristics: Refurbishment of the water and sewage system and construction of a heat recovery system for more than 200 dwellings; underground construction - microtunneling in 8 m depth Products: 540m vitrified clay jacking pipes by Steinzeug-Keramo Steinzeug-Keramo

12 INFRASTRUCTURE Supply grids Project: Power grid Charlottenlund-Varden Norway Commissioned by: Troms Kraft Entreprenør AS Characteristics: Total distance 5,800 meters below ground Products: 75,000 meters of cable protection pipes by Pipelife Pipelife Norway

13 North America Market developments & results Growth in residential construction of single- and two-family homes leads to higher sales volumes in the brick business Positive development in the plastic pipe business Significant earnings improvement in the Division North America (in mn) 1-6/ /2017 Chg. in % External revenues EBITDA

14 NORTH AMERICA Traditional housing Project name / city: Single Family Residence / Memphis, Tennessee Name of Architect or Developer: Magnolia Homes Year of completion: 2014 Characteristics: Every year, the St. Jude Foundation builds a home and auctions it off to raise money for research to finding cures for childhood cancers and diseases. General Shale has the privilege of working with St. Jude on each of these homes supplying the masonry materials. Used products: Old Georgian Tudor (Exterior & Interior) by General Shale General Shale

15 NORTH AMERICA Facade design Project name / city: Two50 Manning - St. Clair Beach, Ontario, Canada Name of Architect or Developer: Petretta Construction Year of completion: 2016 Characteristics: First use of new Evolution Masonry Units in a length of 32 which where created based on requests from architects looking for a longer, sleeker masonry unit than Arriscraft s popular Renaissance Masonry Units that come in a maximum length of 24. Used products: Evolution Masonry Units (White) & Urban Ledgestone Building Stone (Dusk) by Arriscraft General Shale

16 Overview H1 2017

17 Increase in revenues and earnings in H Revenues: 1,528.7 mn (H1 2016: 1,468.9 mn +4%) EBITDA: mn (H1 2016: mn +7%) LFL 1) : +5% LFL 2) : +5% Operating EBIT: 96.3 mn (H1 2016: 79.0 mn +22%) Net result: 41.7 mn (H1 2016: 27.1 mn +54%) 1) Adjusted for effects from consolidation and FX 2) Adjusted for effects from consolidation and FX, sale of non-core assets and portfolio optimization 17

18 in mn Revenue growth in H ,600 1,550 +3% +2% +0% -1% 1, ,500 1, ,450 1,400 1,350 1,300 Revenue H Sales volume Sales price Consolidation effect FX-effect Revenue H Note: Rounding differences may arise from automatic processing of data 18

19 in mn Organic EBITDA development EBITDA H reported 1) EBITDA H ) reported Adjustments EBITDA H basis Adjustments EBITDA H LFL 1) Earnings effects from the sale of non-core assets and portfolio optimization 2) Earnings effects from the sale of non-core assets, consolidation and FX Note: Rounding differences may arise from automatic processing of data 19

20 Income statement in mn 1-6/ /2017 Chg. in % Revenues 1, , EBITDA Depreciation and amortization Operating EBIT Impairment charges to assets and goodwill EBIT Financial result Profit before tax Income taxes Profit after tax thereof attributable to non-controlling interests >100 thereof attributable to hybrid capital holders Net result Note: Rounding differences may arise from automatic processing of data 20

21 Cash flow development in mn 1-6/ /2017 Chg. in mn Chg. in % Gross cash flow Change in working capital 1) Normal capex Divestments and other Free cash flow Growth capex Dividend / hybrid coupon 2) Net cash flow ) Adjusted for changes in the consolidation range 2) Including dividends paid to and changes in non-controlling interests and buy-back of hybrid capital Note: Rounding differences may arise from automatic processing of data 21

22 in mn Development of net debt /12/2016 Gross cash flow Dividend / hybrid coupon1) Total investments Working capital & Others 30/6/2017 1) Including dividends paid to and changes in non-controlling interests Note: Rounding differences may arise from automatic processing of data 22

23 Development of balance sheet ratios in mn 30/6/ /12/ /6/2017 Stable year-on-year net debt / EBITDA despite of refinancing of 2007 hybrid bond Change in net debt H1: Seasonal build-up of working capital in H1 2017: mn Chg. in % vs. 31/12/2016 Equity 1) 1, , , Equity ratio 53% 51% 49% - Net debt Net debt / EBITDA 2) Gearing 35% 34% 43% - 1) Including non-controlling interest and hybrid capital (100% equity according to IFRS) 2) Calculation based on 12-months EBITDA Note: Rounding differences may arise from automatic processing of data 23

24 in mn Strong liquidity and balanced financing structure Cash 30/6/2017: 131 mn Credit lines: 400 mn Thereof drawn 30/6/2017: 162 mn Term structure: Undrawn credit lines Drawn credit lines First-Call Date Hybrid after 2021 Maturities Cash balance Note: Term structure of gross debt, cash position and financial liabilities as of 30/6/

25 Outlook 2017

26 Outlook 2017 Clay Building Materials Europe Diverging market developments in Western Europe Construction activity slightly above level of previous year in UK and NL Increase in new housing construction in France Slowdown of building permits for single- and two-family homes in Germany Delays in construction due to supply shortage of insulating materials in Belgium Continuation of positive market trends in Eastern Europe Positive development of demand New construction and renovation measures supported by government subsidies in a number of markets Note: Estimates refer to developments in our relevant new construction and renovation markets for the clay block, facing brick and roof tile business. Source: Management estimate 26

27 Outlook 2017 Pipes & Pavers Europe Plastic pipes Healthy demand in Nordic core markets and the Netherlands Increase in EU-subsidised infrastructure projects and positive development of demand in Eastern Europe Order intake in the international project business below previous year s level Challenging market environment in France Ceramic pipes Stable development of demand in Europe Concrete pavers Improvement of market momentum as a result of increasing public demand Note: Estimates refer to developments in our relevant markets and applications in the pipe business. Source: Management estimate 27

28 Outlook 2017 North America New construction of single- and twofamily homes in our relevant markets above previous year s level Significant growth in sales volumes Note: Estimates refer to developments in our relevant new construction and renovation markets for the facing brick business. Source: Management estimate 28

29 Global challenges

30 Some global challenges directly or indirectly concern Wienerberger Human Ressourcenverknappung Menschenwürdige working Arbeit conditions Urbanisierung Urbanization Climate change Scarcity of resources Demografic Demografischer change Wandel

31 Integrated Management Approach Economic principles Ecological principles Social principles sustainable increase in the value of the company

32 Nonfinancial Goals: Sustainability Roadmap 2020 Employees Production Products Social responsibility Zero Accidents on Group level CBME / Plastic Pipes: Reduction of specific energy consumption by 20% vs Share of innovative products in revenues: CBME: 25 % North America: 50 % Pipelife: 20 % Semmelrock: 30 % Steinzeug-Keramo: 35 % Zero incidents of corruption on Group level CBME = Clay Building Materials Europe

33 in mn Financial Goal: Significant EBITDA growth in 2017 Organic development includes Increase in sales volumes and prices EBITDA development Savings from Operational Excellence of ~ 10 mn 440 Not included are impacts from 430 Foreign exchange effects Consolidation Sale of non-core assets Portfolio optimization For 2017 we expect negative foreign exchange effects and a positive earnings contribution from the sale of non-core assets ) EBITDA 2016 basis Organic development EBITDA 2017 LFL 1) Adjusted for effects from the sale of non-core assets, consolidation and portfolio optimization 33

34 Goal 2017 Organic Growth Digitalization Innovative products, services and solutions Customer proximity Operational Excellence Continuous cost and process optimization Growth Projects Selective bolt-on projects in core markets Portfolio optimization 415 mn Organic EBITDA 34

35 Wienerberger Corporate Communications Wienerberger AG, A-1100 Vienna, Wienerberg City, Wienerbergstrasse 11 T communications@wienerberger.com Thank you for your attention!

36 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. 36