Investor Relations

Wienerberger Investment Case

Why is it worth investing in the Wienerberger group as a shareholder? Our business strategy, aims, key figures and added value at a glance.

IR Team
Investor Relations
Wienerberger AG
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Wienerberger is an internationally operative supplier of building materials and infrastructure solutions. We produce high quality brick and pipe systems and pavements. We are number 1 on the global market when it comes to bricks, and we are leaders in many of our other business areas too. We create the best solutions for our customers with our sustainable and innovative products.

We are generating profitable growth in the fields of infrastructure, residential construction and renovations within our core markets of Europe and North America. The goal of our commercial activity is to improve the value of our business sustainably where environmental, social and economical factors are concerned. Our business strategy focuses on organic growth and operational excellence, as well as growth projects and optimisation of our portfolio.

The investment case at a glance

Strong foundation for expansion

  • Leading industrial platforms with strong positions on local markets
  • Experienced local management
  • Customer intimacy via individual consultancy services
  • Innovative products and system solutions with strong brands

Clear growth strategy

  • Organic growth through innovation, proximity marketing and digitalization
  • Attractive pipelines to projects for profitable growth investments
  • Disciplined investment decisions: CFROI >11.5%
  • Continuing reinforcement of profitability through optimization of costs and processes
  • Continuous optimization of our industrial portfolio by selling non-strategic business areas and reinvesting in high-margin growth fields

Ambitious aims

  • 2018: Revised EBITDA from 450 to 470 million Euros
  • 2020: EBITDA of >600 million Euros

Clear focus

  • Key markets in Europe and North America
  • Business areas of infrastructure, residential construction and renovations
  • Brick and pipe systems and pavements

Balanced funding

  • Strong equity ratio
  • Net debt/EBITDA: below the internal threshold of 2.0 years at year-end; if value-accretive opportunities arise, a short-term increase of the threshold to 2.5 years is possible
  • Moody's Rating: Ba1/Prospect stable
  • Stringent working capital management

Attractive profit distribution policy

  • Sustainable dividend payout: 10-30% of the free cashflow allowing for the costs of hybrid capital
  • Share buyback scheme of over 1.2 million of our own shares since December 2017 (about 1% of the basic capital)

The process for adding value

Our process for adding value is the foundation for raising the value of the Wienerberger group sustainably. Innovative construction material solutions for all areas of application are the output of industrial manufacturing - ranging from sustainable and energy-efficient buildings to functional solutions for shaping squares, paths and streets, to safe supply and sewage systems.

Six input factors are incorporated into Wienerberger’s process for adding value: Financial capital, Production systems, Knowledge, Employees, Relationships and Natural resources. These interact closely with one another and are influenced by our business activities. Changes to individual factors are based on balanced strategic decisions. Thus, we are able to create added value for the organization and for our stakeholders.

Key Figures

The following table summarizes the key figures regarding the performance of the Wienerberger group in 2017:

Earnings Data

Earnings Data20162017Chg. in %
Revenuesin MEUR2,973.83,119.7+5
EBITDAin MEUR404.3415.0+3
Operating EBIT in MEUR197.7194.2-2
Impairment / Reversal
of impairment charges to assets
in MEUR-0.2-9.2<-100
Impairment charges to goodwillin MEUR-6.9-6.3+8
EBITin MEUR190.6178.7-6
Profit before taxin MEUR158.5144.9-9
Net resultin EUR82.0123.2+50
Free cash flow 1)in MEUR246.5152.5-38
Normal capexin MEUR137.3147.5+7
Growth capexin MEUR43.858.8+34
ROCEin %5.87.3-
CFROI in %7.27.4-
Ø Employeesin FTE15,99016,297+2

Balance Sheet Data

Balance Sheet Data31/12/201631/12/2017Chg. in %
Equity 1)in MEUR1,849.01,911.2+3
Net debtin MEUR631.6566.4-10
Capital employedin MEUR2,460.02,459.20
Total assetsin MEUR3,637.23,659.9+1
Gearingin %34.229.6-

Stock Exchange Data

Stock Exchange Data20162017Chg. in %
Earnings per sharein EUR0.701.05+50
Adjusted earnings per sharein EUR0.761.19+56
Dividend per sharein EUR0.270.30+11
Share price at year-endin EUR16.5020.17+22
Shares outstanding (weighted) 1)in 1,000116,956116,9560
Market capitalization at year-endin MEUR1,938.62,370.5+22

Divisions

Divisions 2017 in MEURCBME EuropeP&P EuropeNorth AmericaHolding & OthersReconciliation
External revenues1787.01014.2308.78.6
Inter-company revenues1.50.10.314.7-15.5
Revenues1788.51014.3309.123.3-15.5
EBITDA324.369.732.0-11.1
Operating EBIT 185.020.13.0-13.9
CFROI in %8.48.03.9-15.9
Total investments96.157.943.98.3
Capital employed1523.4563.4364.97.5
Ø Employees (in FTE)10572.04210.01305.0210.0

Operating Segments

The following table summarizes the key figures regarding the performance of the Wienerberger group in 2017:

Clay Building Materials Europe

Clay Building Materials Europe20162017Chg. in %
External revenuesin MEUR1,681.21,787.0+6
EBITDAin MEUR290.7324.3+12
Operating EBIT in MEUR163.6185.0+13
Total investmentsin MEUR97.596.1-1
Capital employedin MEUR1,575.61,523.4-3
Ø Employeesin FTE10,33310,572+2
Clay Building Materials Western Europe20162017Chg. in %
External revenuesin MEUR1,174.41,224.1+4
EBITDAin MEUR185.0187.0+1
Operating EBIT in MEUR105.895.0-10
CFROIin %6.76.9-
Total investmentsin MEUR60.557.7-5
Capital employedin MEUR1,105.91,051.7-5
Ø Employeesin FTE5,9836,121+2
Sales volumes clay blocksin mill. NF2,0532,042-1
Sales volumes facing bricksin mill. WF1,2801,476+15
Sales volumes roof tilesin mill. m²23.2922.65-3
Clay Building Materials Eastern Europe20162017Chg. in %
External revenuesin MEUR506.8562.9+11
EBITDAin MEUR105.7137.3+30
Operating EBIT in MEUR57.890.0+56
CFROIin %9.512.0-
Total investmentsin MEUR37.038.4+4
Capital employedin MEUR469.8471.70
Ø Employeesin FTE4,3504,451+2
Sales volumes clay blocksin mill. NF3,3903,698+9
Sales volumes roof tilesin mill. m²18.4018.62+1

Pipes & Pavers Europe

Pipes & Pavers Europe20162017Chg. in %
External revenuesin MEUR988.21,014.2+3
EBITDAin MEUR98.569.7-29
Operating EBIT in MEUR48.220.1-58
Total investmentsin MEUR66.357.9-13
Capital employedin MEUR532.5563.4+6
Ø Employeesin FTE4,1634,210+1
Pipes & Pavers Western Europe20162017Chg. in %
External revenuesin MEUR576.7574.20
EBITDAin MEUR63.131.8-50
Operating EBIT in MEUR35.04.7-87
CFROIin %15.37.2-
Total investmentsin MEUR38.036.8-3
Capital employedin MEUR280.9301.0+7
Ø Employeesin FTE1,8411,884+2
Pipes & Pavers Eastern Europe20162017Chg. in %
External revenuesin MEUR411.5440.0+7
EBITDAin MEUR35.437.9+7
Operating EBIT in MEUR13.215.4+17
CFROIin %8.88.8-
Total investmentsin MEUR28.321.2-25
Capital employedin MEUR251.6262.4+4
Ø Employeesin FTE2,3222,3260

North America

North America20162017Chg. in %
External revenuesin MEUR292.7308.7+5
EBITDAin MEUR32.732.0-2
Operating EBIT in MEUR5.93.0-49
CFROI in %3.93.9-
Total investmentsin MEUR12.743.9>100
Capital employedin MEUR352.8364.9+3
Ø Employeesin FTE1,2891,305+1
Sales volumes facing bricksin mill. WF421454+8

Holding & Others

Holding & Others20162017Chg. in %
External revenuesin MEUR8.68.60
EBITDAin MEUR-17.6-11.1+37
Operating EBIT in MEUR-20.1-13.9+30
Total investmentsin MEUR4.68.3+81
Capital employedin MEUR-1.07.5>100
Ø Employeesin FTE205210+2

Group Accounts

The following table summarizes the key figures regarding the performance of the Wienerberger group in 2017:

Income Statement

Income Statement in TEUR20172016
Revenues3,119,7072,973,829
Cost of goods sold-2,093,708-2,011,241
Gross profit1,025,999962,588
Selling expenses-595,562-574,347
Administrative expenses-203,322-186,184
Other operating income:
Reversal of impairment charges to assets1,0554,303
Other59,39064,769
Other operating expenses:
Impairment charges to assets-10,226-4,511
Impairment charges to goodwill-6,339-6,892
Other-92,323-69,110
Operating profit/loss (EBIT)178,672190,616
Income from investments in associates and joint ventures4,2096,666
Interest and similar income5,9525,494
Interest and similar expenses-42,103-39,898
Other financial result-1,852-4,329
Financial result-33,794-32,067
Profit/loss before tax144,878158,549
Income taxes-4,244-43,222
Profit/loss after tax140,634115,327
Thereof attributable to non-controlling interests3,4021,823
Thereof attributable to hybrid capital holders14,05731,540
Thereof attributable to equity holders of the parent company123,17581,964
Earnings per share (in EUR)1.050.70
Diluted earnings per share (in EUR)1.050.70

Balance Sheet

Balance Sheet in TEUR31.12.201731.12.2016
Assets
Intangible assets and goodwill690,897690,440
Property, plant and equipment1,521,5721,564,727
Investment property65,91885,733
Investments in associates and joint ventures11,37113,542
Other financial investments and non-current receivables16,70813,918
Deferred tax assets44,04917,367
Non-current assets2,350,5152,385,727
Inventories741,597718,359
Trade receivables214,277201,809
Receivables from current taxes2,2979,868
Other current receivables98,93466,278
Securities and other financial assets79,00852,740
Cash and cash equivalents169,259197,016
Non-current assets held for sale3,9775,380
Current assets1,309,3491,251,450
Total assets3,659,8643,637,177
Equity and liabilities
Issued capital117,527117,527
Share premium1,086,0171,086,017
Hybrid capital265,985265,985
Retained earnings674,923586,961
Other reserves-251,842-222,503
Treasury stock-4,862-4,862
Controlling interests1,887,7481,829,125
Non-controlling interests23,49119,831
Equity1,911,2391,848,956
Deferred taxes71,63080,759
Employee-related provisions154,992171,488
Other non-current provisions76,45371,197
Long-term financial liabilities493,948481,434
Other non-current liabilities6,0233,991
Non-current provisions and liabilities803,046808,869
Current provisions39,11435,287
Payables for current taxes11,39915,912
Short-term financial liabilities320,724399,924
Trade payables321,533302,718
Other current liabilities252,809225,511
Current provisions and liabilities945,579979,352
Total equity and liabilities3,659,8643,637,177

Cash Flow Statement

Cash Flow Statement in TEUR20172016
Profit/loss before tax144,878158,549
Depreciation and amortization189,605191,312
Impairment charges to goodwill6,3396,892
Impairment charges to assets and other valuation effects47,09135,135
Reversal of impairment charges to assets-1,055-4,303
Increase/decrease in non-current provisions-8,213-7,292
Income from investments in associates and joint ventures-4,209-6,666
Gains/losses from the disposal of fixed and financial assets-25,343-26,028
Interest result36,15134,404
Interest paid-38,473-33,595
Interest received4,5914,796
Income taxes paid-48,923-35,287
Gross cash flow302,439317,917
Increase/decrease in inventories-39,98720,884
Increase/decrease in trade receivables-17,112-5,672
Increase/decrease in trade payables16,37430,460
Increase/decrease in other net current assets10,620-29,818
Cash flow from operating activities272,334333,771
Proceeds from the sale of assets (including financial assets)28,79942,145
Payments made for property, plant and equipment and intangible assets-163,186-163,575
Payments made for investments in financial assets0-16
Dividend payments from associates and joint ventures6,5974,265
Increase/decrease in securities and other financial assets-7,8003,579
Net payments made for the acquisition of companies-43,128-17,504
Cash flow from investing activities-178,718-131,106
Cash inflows from the increase in short-term financial liabilities721,738116,423
Cash outflows from the repayment of short-term financial liabilities-984,369-206,945
Cash inflows from the increase in long-term financial liabilities210,9295,000
Cash outflows from the repayment of long-term financial liabilities-6,939-11,725
Dividends paid by Wienerberger AG-31,578-23,391
Hybrid coupon paid-29,898-32,520
Dividends paid to and other changes in non-controlling interests-79-9
Buyback hybrid capital0-5,968
Cash flow from financing activities-120,196-159,135
Change in cash and cash equivalents-26,58043,530
Effects of exchange rate fluctuations on cash held-1,177-1,392
Cash and cash equivalents at the beginning of the year197,016154,878
Cash and cash equivalents at the end of the period169,259197,016

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