wienerberger capital markets day · improvement ebitda lfl 2019 guidance in € mn outlook 2019...

September 2019Wienerberger Capital Markets Day

OUR KEY SUCCESS FACTOR HAS NOT CHANGED IN THE LAST 200 YEARS

OUR PEOPLE

OUR SUCCESS STORY BEGAN 1819 ON A HILL SOUTH OF VIENNA

… OR WHEN INTRODUCING SOCIAL BENEFITS AND BUILDING AFFORDABLE HOMES FOR OUR WORKERSWIENERBERGER IS BUILT ON STRONG FOUNDATIONS

BUILDING FOR PEOPLE

CREATING VALUE

SUSTAINABLE GROWTH

150 YEARS AS STOCK LISTED

COMPANY

DRIVING INNOVATION

TODAY WE FOCUS ON …

A CIRCULAR ECONOMY58.9

64.6 65.467.2

2014 2015 2016 2017 2018 2020

Recycled material in plastic pipes85

WE FOCUS ON …

EMPLOYEE SAFETY

2013 2014 2015 2016 2017 2018

Accident frequency rate *

* Number of occupational accidents / number of hours worked x 1,000,000

WE FOCUS ON …WE FOCUS ON …

E4 HOUSING CONCEPT FOR ZERO ENERGY HOMES

WE FOCUS ON …

SECURITY OF SUPPLY USING SMART INFRASTRUCTURE

WE FOCUS ON …

RESEARCH & DEVELOPMENT FOR INNOVATIVE

SOLUTIONS AND SERVICES

24%25%

28%27%

30%29%

2013 2014 2015 2016 2017 2018

Share of revenues generated by innovative products

AND WE FOCUS ON …

THE DIGITALIZATION OFOUR VALUE CHAIN

BECAUSE SINCE 1819 IT HAS BEEN OUR MISSION …

… TO IMPROVE PEOPLE’S QUALITY OF LIFE BY PROVIDING OUTSTANDING, SUSTAINABLE BUILDING MATERIAL

AND INFRASTRUCTURE SOLUTIONS.

TODAY WIENERBERGER IS A LEADING INTERNATIONAL SOLUTIONS PROVIDER FOR BUILDINGS AND INFRASTRUCTURE

DRIVING DIGITAL

CHANGE IN OUR

INDUSTRY

SOLUTION PROVIDER

STRONG PARTNERFOR OUR

CUSTOMERS

HIGHLY SKILLED

EMPLOYEES

INNOVATIONLEADER

FINANCIAL SUMMARY

Record H1 results highlight consistent implementation of value-enhancing growth strategyRevenues € 1,736 mn | +8%

EBITDA LFL € 287 mn | +33%

Net profit € 127 mn | >100%

Excellent progress on Fast Forward ProgramH1 earnings contribution € 25 mn

Cumulative program contribution € 45 mn

Confident in delivering our 2019 growth ambitionGiven strong H1 performance, guidance for EBITDA LFL has beennarrowed to € 570 – 580 mn (previously € 560 – 580 mn)

Record H1 19 resultsHighlights

H1 trading environment broadly consistentwith expectations at the beginning of the year

Improved product mix and favorable pricing drive earnings improvement

Strong earnings contribution from bolt-on M&A

Wienerberger Building SolutionsExcellent performance in H1

WBS(in € mn) H1 2019 H1 2018 Chg. in %

External revenues 1,074.1 978.4 +10

EBITDA LFL 219.1 160.5 +37

EBITDA 221.7 156.8 +41

EBITDA LFL margin 20.7% 16.4% -

› Growth in almost all our core markets

› Early start to building season due to favorable weather conditions

› Normalization of demand in Q2 as expected & increased volatility in certain end markets

› Enhanced share of high added-value solutions supports pricing

› Strong earnings contribution from consistent implementation of Fast Forward Program

› Bolt-on acquisitions show highly satisfactory performance

Wienerberger Piping Solutions Significant earnings growth

WPS(in € mn) H1 2019 H1 2018 Chg. in %

External revenues 497.0 478.5 +4

EBITDA LFL 51.7 35.2 +47

EBITDA 51.1 20.7 >100

› Normalization of demand in-line with expectations after strong start to the year

› Strong growth in electro business

› Earnings increase in water management activities supported by improving demand in Eastern Europe

› Increasing project volumes in the energy sector drive growth with special pipes

› Improved product mix and proactive price policy support earnings growth

› Successful delivery on EBITDA enhancement from Fast Forward projects

North AmericaMixed developments in H1

› Sound demand for facade solutions in our relevant core markets

› Strong earnings contribution from acquired facing brick producer

› Stricter housing market regulation continued to weigh on our Canadian business

› US plastic pipe business could not match prior year’s record result due to weather related project delays

› Fast Forward optimization measures contributed to earnings improvement

North America(in € mn) H1 2019 H1 2018 Chg. in %

External revenues 164.9 149.3 +10

EBITDA LFL 15.8 19.3 -18

EBITDA 22.8 21.4 +7

in € mn H1 2019 H1 2018 Chg. in %

Revenues 1,736.4 1,606.9 +8

EBITDA LFL 286.6 214.9 +33

EBITDA 295.7 198.9 +49

EBIT 181.5 107.7 +69

Financial result -14.8 -21.1 +30

Profit before tax 166.7 86.6 +93

Income taxes -32.9 -27.1 -21

Hybrid coupon and non-controlling interests -6.9 -6.3 -8

Net result 126.9 53.2 >100

EPS 1.11 0.46 >100

Income statementNet result more than doubled

Note- H1 19 EBITDA LFL includes an effect of € 21.3 mn from the implementation of IFRS 16 Leases- Rounding differences may arise from automatic processing of data

EBITDA adjustment (€ mn) H1 19 H1 18

EBITDA reported 2) 295.7 198.9

FX +1.4 -

Consolidation -8.0 -

Sale of assets 3) -3.2 -9.3

Structural adjustments +0.7 +25.3

Total adjustment -9.1 +16.0

EBITDA LFL 2) 286.6 214.9160

EBITDAreported

Adjustment EBITDALFL basis

EBITDAreported

Adjustment EBITDALFL

in €

+16.0 214.9

286.6-9.1

1) H1 2018 EBITDA not adjusted for IFRS 162) Includes an effect of € 21.3 mn from the implementation of IFRS 163) Sale of non-strategic and non-operating assetsNote: Rounding differences may arise from automatic processing of data

1) 2) 2)

Operating performanceStrong growth of EBITDA LFL

H1 19 impact› Extension of the balance sheet

› Recognition of “Right of Use Asset” and “Lease Liability”

› Effects on income statement

› ↑ EBITDA: no rental / leasing expenses

› ↑ EBIT: Rental / lease cost is broken down into depreciation of “Right of Use Asset” and interest on the “Lease Liability”

› ↓ Interest result: interest on “Lease Liability”

› Change in accounting standard has no impact on underlying cash flows

€ 21.3 mn effect on EBITDA in H1 19

Income Statement in € mn

EBITDA +21.3

Depreciation -20.8

EBIT +0.6

Interest result -1.7

Net income -1.2

Balance sheet in € mn

Change of net debt +160.6

Accounting changeImpact of IFRS 16 implementation

Note: Rounding differences may arise from automatic processing of data

Income statementFinancial result

Improvement of interest expenses

› Realization of full interest savings from refinancing of corporate bond in July 2018

› Improvement despite negative impact of € 1.7 mn from implementation of IFRS 16 Leases

in € mn H1 2019 H1 2018 Chg. in %

Income from investments in associates and joint ventures 0.7 0.5 +47

Interest and similar income 1.5 2.7 -45

Interest and similar expenses -20.6 -21.6 -5

Other financial result 3.6 -2.7 <-100

Financial result -14.8 -21.1 -30

in € mn H1 2019 H1 2018 Chg. in € mn Chg. in %

Gross cash flow 215.4 132.6 +82.8 +62

Change in working capital 1) -210.3 -193.5 -16.7 -9

Normal capex -68.5 -60.7 -7.9 -13

Divestments and other 2) -17.3 +74.2 -91.5 <-100

Free cash flow -80.7 -47.4 -33.3 -70

Growth capex 3) -47.2 -60.9 +13.7 +22

Dividend & share buyback 4) -60.4 -57.3 -3.1 -5

Hybrid coupon & buyback -20.6 -13.6 -7.0 -51

Net cash flow -208.9 -179.2 -29.7 -17

1) Adjusted for changes in the consolidation range2) Including lease payments of € 19.6 mn, which are reported in cash flow from financing activities upon the implementation of IFRS 163) Including the buyout of minorities4) Including dividends paid to non-controlling interestsNote: Rounding differences may arise from automatic processing of data 22

Cash flow developmentGross cash flow reflects strong earnings increase

in € mn 30/6/2018 31/12/2018 30/6/2019Chg. in % vs.

31/12/2018

Equity 1) 1,855.9 1,939.1 1,980.4 +2

Equity ratio 47% 52% 49% -

Net debt 778.7 631.6 982.3 +56

Net debt / EBITDA 2) 1.8 1.4 1.8 -

Gearing 42% 33% 50% -

1) Including non-controlling interest and hybrid capital (100% equity according to IFRS)2) Calculated based on 12-months EBITDANote: Rounding differences may arise from automatic processing of data

Balance sheetSound ratios despite IFRS 16 impact

OUTLOOK

EBITDA LFL 2018incl. FX

IFRS 16 EBITDA LFL 2018base

EBITDAimprovement

EBITDA LFL 2019guidance

in €

Outlook 2019Confident in delivery – narrowed guidance range

Record H1 results highlight consistent implementation of value-enhancing growth strategy

Excellent progress on Fast Forward Program

Confident in delivering our 2019 growth ambition

Executive SummaryRecord H1 enables narrowing of guidance range

GOVERNANCE

Corporate governance at WienerbergerTwo-tier board system

SupervisoryBoard

Managing Board

Annual General Meeting

appoints, advises,supervises

reports to

Supervisory BoardShareholder representatives: group of experts

Regina Prehofer (Born 1956, Austria)Chairwoman of the Supervisory BoardIndependent, Member since 2011

Extensive leadership and supervisory Board experience. Career in banking and finance. Start-up investor and advisor.

David Davies (Born 1955, England)Vice-Chairman of the Supervisory BoardIndependent, Member since 2017

Distinguished expert in finance, M&A and restructuring. Extensive international background.

Christian Jourquin (Born 1948, Belgium)Member of the Supervisory BoardIndependent, Member since 2014

Profound leadership experience from functions in listed companies. Distinguished track record in transformation management.

Caroline Grégoire Sainte Marie (Born 1957, France)Member of the Supervisory BoardIndependent, Member since 2015

Executive positions at various building materials and distribution companies. Distinguished background in distribution and finance.

Myriam Meyer (Born 1962, Switzerland)Member of the Supervisory BoardIndependent, Member since 2015

Strong background in engineering, automation and robotics as well as human resources and organizational development.

Oswald Schmid (Born 1959, Austria)Member of the Supervisory BoardIndependent, Member since 2019

Expert in mechanical engineering, procurement, sales and digitalization. Extensive leadership experience in various executive positions.

Peter Steiner (Born 1959, Germany)Vice-Chairman of the Supervisory BoardIndependent, Member since 2018

Experience as executive and non-executive director in the building materials industry and particular expertise in capital markets.

Peter Johnson (Born 1947, England)Member of the Supervisory BoardIndependent, Member since 2005

Industry expert with profound experience from numerous executive and non-executive positions in building material groups.

Female Male

Supervisory BoardExperienced, diverse, independent

Average age 59 Place of birth

Shareholder Representatives

EmployeeRepresentatives

Tenure 2)

1) All shareholder representatives are independent. // 2) Note: By law employee representatives are delegated by the Works Council and their membership is not subject to a time limit. The three employee representatives have been members of the Supervisory Board for 1, 13 and 17 years, respectively.

Board members

Gender Diversity

Austria Other

IndependentNot independent

Independence 1)

Elected by the Annual general meeting for a fixed term.

Delegated by the Works Council for an unlimited amount of time.

1-5 years 6-10 years >10 years

< 65 > 65

› The Supervisory Board supervises and advises on Wienerberger’s operationaland strategic development

› Wienerberger is managed on the basis of effective governance structures

› Wienerberger is led by highly professional and qualified teams of experts witha strong track record of generating value creating growth

› Current focus areas of the Supervisory Board

Strategic Development of the Group and analysis of M&A opportunities

Succession Management in the Supervisory Board

Succession Management in the Managing Board

Compensation and incentive structure for the Supervisory Board and the Managing Board

Corporate GovernanceExecutive Summary

Strong commitment to highest governance standards and continuous improvement

GROUP STRATEGY

Culture changeIn the early 2000s Wienerberger was focused on …

CAPACITY EXPANSION

LIMITED MARKET FOCUS

HIGHSHARE OF

COMMODITY PRODUCTS

EXTENSIVEM&A

AGGRESSIVE FINANCIAL

POLICY

Culture changeSince then we have fundamentally reshaped our Group

DIGITAL INNOVATION

BROAD PORTFOLIO OF

UNIQUE PRODUCTS

CUSTOMER PROXIMITY

ECOLOGICAL PERFORMANCE

STRONG FINANCIAL DISCIPLINE

OPERATIONAL EXCELLENCE

10-year performanceStrong track record

in € mn

EBITDA has more than tripled

Portfolio has been reshaped

Revenues have doubled

Net profit has been turned around

2009 2019

in € mn

1) 2019 figures are based on current company compiled consensus2) Revenue split

2009 2) 2019 1,2)

Residential Non-residential Infrastructure

Group StrategyFocused on value creation

Organic growth Operational Excellence

Growth projects &Portfolio optimization

Strong track record of consistently improving performance confirms success of

our growth strategy

Group StrategyDrivers of our success

How we enhance performance andprofitability in our existing businesses

COMPLEXITY OF BUILDING

PROJECTS

TIME OVERRUNS

CHANGING BUILDING

REGULATION

RISING BUILDING

Organic GrowthOur customers face many challenges

TRANSFOR-MATIONOF OUR

PORTFOLIO

EXTENDING OUR SHARE OF

THE VALUE CHAIN

FOCUS ON INNOVATION

DIGITAL CUSTOMER

ENGAGEMENT

BIM READY HOUSING CONCEPTS SMART

SOLUTIONS

Organic GrowthWe provide solutions

Transformation of our business modelDriving customer proximity and value creation

We are progressing from a product manufacturer …

› We produce high performing pumping stations and plastic tanks

› Targeting professionals as well as end-customers

PROXIMITY TO CUSTOMER

PRODUCTSPIPES & FITTINGS

LEVEL OF VALUE CREATION

… to a provider of system solutions …

› Offer of assembled systems

› Support in project planning and calculation

› Provide tailor-made solutions

FULL SYSTEMSPREFABRICATED AND PLUG&PLAY SOLUTIONS

… to a smart long-term partner

› Offering network monitoring services

› Remote management services

› Generating recurring service revenues

FULL SYSTEMSPREFABRICATED AND PLUG&PLAY SOLUTIONS

SMART SOLUTIONSMONITORING & CONTROL

Smart SolutionsSmart Pumping Stations

› Pipelife Finland is pioneering smart pumping stations for private households

› A high-performance pumping station is combined with software which

› Informs the customer about the system status at the click of a button

› Links to weather data to warn of potential overflows

› Facilitates preemptive maintenance

› Launched in fall 2018, today already more than 50% of all pumping stations sold are smart

Full service solution forour customers

› Revenue generated with smart pumping station can be multiplied over lifetime

› Depending on the model and target customer group by a factor of 4-7

Organic growthTransformation to service model

Potential of a smart pumping station

Product Product + Service

Service revenue Product revenue

4-7x product revenue

Significant opportunity to

drive profitability

Total construction costs € 300,000

Enhancing our share of the value chainAnalysis of the total value of a building envelope

Note: Figures depicted are only indicative

Total construction costs

Share of building envelope

€ 300,000

€ 100,000

€ 4,500

€ 1,800

Facade

Pavers

€ 4,500

€ 2,000

Current share of Wienerberger € 12,800 <5%

Enhancing our share of the value chainVision to claim 10% of the total value

Strong growth

potential

Enhancing our share in of value chainGrowth opportunities in adjacent & new products

Solution

New ProductsExisting Products

Service

Prefab Bricks & Dryfix

Accessories Roof solutions

All4Roof

Home4life New Website

Robotics

Adjacent Products

Mineral insulation

… and we are evaluating new opportunities

› Certified SoluForce pipe to transport green hydrogen produced by wind mills in the North Sea to companies in the Groningen region

› First time that flexible composite technology will be used for high-pressure hydrogen transportation

› Enables transportation of hydrogen generated directly at the source

New applications for proven technologiesGLOBAL FIRST – Certified for Hydrogen applications

PERMEATION-TIGHT

Aluminum barrier completely eliminates permeationof gaseous components allowing for safe transportation

CORROSION RESISTANT

Fully corrosion resistant even in high-pressure hydrogen applications enabling transport from the Sea

EASY TO TRANSPORT

With long-length and easy to handle coils, SoluForce drastically reduces transportation costs

New applications for proven technologiesContributing to the feasibility of green energy projects

energyeconomy environmentemotion

100 housesin 2019

Cooperation with construction companies, designers

Pre-designed single-family

Partner for stakeholders from planning to executione4 house concept – From digital plan to dream home

Added Value Services

Digital Process Improvement

Efficiency & Cost Savings

Digital Customer Engagement

Digital Business Models

Scalable Solutions

Digital AgendaDriver for organic growth

Distributors Contractors Developers Designers & Planners

Asset Owners

Distributors Contractors Developers Designers & Planners

Asset Owners

ONE DIGITAL BUILDING & INFRASTRUCTURE PLATFORM

OPEN BIM ECOSYSTEM

Digital AgendaDigitalization enhances organic growth

BIM: DRIVING THE INDUSTRY‘S DIGITAL TRANSFORMATION

BuildingInformation

Modeling (BIM) addresses challenges

facing the construction

industry

Increased productivity, resource and

energy efficiency

Wienerberger Solutions

WIENERBERGER BUILDING PLATFORM - BUILDING SYSTEMS & SOLUTIONS, SERVICES AND TOOLS

DigitalBuilding Libraries

BIM Model

Plugins fordesign software

and Tooling

SPIDER – PREFABRICATED ELECTRICAL POWER SUPPLY

Reduces installation time from 16h to 3h

Facilitates smart homes – benefit

for installers and end customers

Design

Pre-fabrication

Installation

„ELECTRO SPIDER“ - END-TO-END SOLUTIONS

DIGITAL TOOLS FOR OUR PARTNERS - ALL4ROOF

Overview of materials and personalized quote with a

few clicks

Platform with tools & applications to make the life of roofers easier

INNOVATIVE SOLUTIONS AGAINST FLOODING

Raineo system as a remedy against

floodingHighly resistant and

versatile in use

REMOTE CONTROLLED WATER MANAGEMENT SOLUTIONS

Solutions for municipalities,

regional governments

and utility companies

ADDED VALUE THROUGH SMART FITTINGS IN WATER NETWORKS

"Smart Fitting“Coupler equipped

with sensors

Added value for utility companies

REMOTE CONTROLLED PUMPING STATIONS IN COMBINATION WITH WEATHER DATA

Responsive system solutions

for all devices

Monitoring, controlling & alerting

In-house solution for end

customers

PREFABRICATION & ROBOTICS

Boosting efficiencyon the

construction site

Hadrian X Redbloc

15.09.2019 64

WE DRIVE DIGITALIZATION FROM SINGLE FAMILY HOMES TO CITY DEVELOPMENTS FOR AN INTEGRATED BUILT ENVIRONMENT

We are building the future

›Our digital solutions are already up and running

›Designed for fast scalability across our strong commercial platforms in 30 countries

Digital AgendaDriver for organic growth

Organic growth

Enhance our share of the construction walletOUR VISION Double our share to approx. 10%

Drive the transformation toward service modelOUR VISION Substantially grow the share of recurring service revenues

Lead the digital transformation of our industryDigital Business Models | Digital Customer Engagement | Process Improvement

Leverage our strong operating platforms to scaleinnovative solutions and new business models

Operational ExcellenceSelf-help is a core performance driver

› Continuously striving for the improvement of internal processes is part of our Group’s culture

› In the period 2009 to 2017 we have optimized fixed costs by € 300 mn

› In 2018 we bundled all standing improvement initiatives into the Fast Forward 2020 program

› In six dedicated workstreams we are workinghard to realize a substantial EBITDA enhancement

EBITDA enhancement fromFast Forward 2020 of € 120 mn

between 2018 and 2020

Operational ExcellenceClear structure and performance goals

Manufacturing Excellence

Commercial Excellence

Procurement

Supply Chain Management

General & Administration

Turnaround cases

Expected programcontribution

€ 120 mn

Target EBITDA improvement

vs. 2017 baseline

Operational ExcellenceAll targets achieved successfully to date

€ 120 mn

On track

Already achieved

€ 75 mn

€ 45 mn

Procurement

Turnaround cases

Expected programcontribution

vs. 2017 baseline

FAST FORWARD 2020: PERFORMANCE ENHANCEMENT PROGRAM

Operational Excellence

FAST FORWARD 2020 IS ACCELERATING OPERATIONAL EXCELLENCE

Organic Growth Growth projects

FAST FORWARD 2020 IS A STEP CHANGE IN HOW WE DO OPERATIONAL EXCELLENCE

Fast Forward 2020 delivers a sustainable EBITDA improvement vs. our baseline 2017

The program was set-up assuming stable volume developments between 2020 and 2017

All ongoing improvement initiatives bundled under the umbrella of Fast Forward 2020

Extra funds of € 50 mn for quick payback projects granted and tracked together with special CAPEX projects

Harmonized approach across 6 workstreams to track and steer initiatives

Fast Forward 2020Clear structure and performance goals

Procurement

Turnaround cases

€ 120 mn

vs. baseline 2017

Manufacturing Excellence30%

€ 120 mn

vs. baseline 2017

We are operating at a solid level of capacity utilization: ~ 80% across the Group

Further optimization at already high level

Automation of production processes

Increase of process efficiency with dedicated plant diagnostics and lean manufacturing experts

Reduction of energy consumption by rolling out proven practices

STEP CHANGE IN LEAN MANUFACTURINGPLANT DIAGNOSTICS DRIVE EFFICIENCY & AUTOMATION INITIATIVES

Observation Opportunity Identification Prioritisation

10 % average saving potential

in energy, maintenance &

personnel

Rollout of best practices

STEP CHANGE IN PRODUCTION COSTSUSING ROBOTICS FOR HIGHER EFFICIENCY & FEWER SAFETY HAZARDS

Higher efficiency &

accuracy and fewer health & safety hazards

CAPEX € 360kEBITDA € 130k

STEP CHANGE IN ENERGY CONSUMPTIONGREATER ENERGY EFFICIENCY WITH NEW ROTARY FAN & FLOW GUIDES

Saving:€ 50k

per plant

Potential rollout to 40-50 block plants

28% less energy

consumption during drying

Commercial Excellence35%€ 120 mn

vs. baseline 2017

Closer to the customer with new sales approaches

Dedicated teams for project salesoffering the whole building envelope

Shift from commodity products to higher value products supported by digital tools and services

Shift from product to system solutions

Manufacturing Excellence30%

STEP CHANGE IN PRODUCT PORTFOLIOSALES TRANSFORMATION IN SEMMELROCK POLAND

Positive mix-effect

of > € 1.5 mn

Comprehensive commercial

enhancement program

STEP CHANGE IN SALES APPROACHDEDICATED PROJECT TEAMS FOR MULTI STOREY BUILDINGS

Skyline project in Belgrade as

regional success story

Increasing market share in growing multi-storey segment

Project definition per

country

Set-up of project sales

Standard CRM roll-out and

steering tools

Procurement15%

€ 120 mn

vs. baseline 2017

New centrally-led organizational set-up

Optimizing input costs by leveraging group purchasing power

Enhancing strategic supplier relationship management (SRM)

Increasing focus on sustainability in SRM and purchasing of recycled materials

Implementation of an e-procurement platform

STEP CHANGE IN PACKAGING COSTS AND SUSTAINABILITYUK: 36% SAVINGS BY USING A THINNER STRETCH HOOD FOIL

Pilot project:€ 100k savings

21 tons less material

Successful strategic supplier relationship

management

STEP CHANGE IN PRODUCTION COSTS AND SUSTAINABILITYBOOSTING ENVIRONMENTAL PERFORMANCE AND COST EFFICIENCY

Target

Increase kg of recycled

material per ton produced by

Vision

300 year pipe

Vision

Specific pipes made of 100%

recycled material

Procurement

Supply Chain Management & General Administration

€ 120 mn

vs. baseline 2017

Digitalization of stockyard processes leading to higher efficiency

Optimized product flows along the value chain

Reduction of manual work

Harmonization and digitalization of administrative processes

STEP CHANGE IN DISTRIBUTION COSTSDIGITAL STOCKYARD

Pilot project:Fewer forklifts

and reduction of driven km

Increased customer

satisfaction

STEP CHANGE IN ADMINISTRATION EFFICIENCYORDER INTAKE USING ROBOTIC PROCESS AUTOMATION

40% timesaving &

fewer errors

Shifting resources to

value-creating operations

Procurement

€ 120 mn

vs. baseline 2017

Supply Chain Management & General Administration

Turnaround cases15%

Plant network optimization

New organizational structures

Adapted market approach with new sales set-up

Product portfolio upgrade and exit from low margin commodity products

All targets achieved in 2018

Delivery on track in 2019

› Strong improvement of product mix

› Automation projects, efficiency improvements and energy savings

› New procurement organization and improved supplier relationship management

› First effects from overhead cost optimization

2020 Pipeline already well developed

Identification of further optimization potential continues beyond 2020

H1 2019Well on track to meet 2019 Fast Forward targets

On track

Already achieved

€ 75 mn

€ 45 mn

Target € 120 mn EBITDA improvement

vs. baseline 2017

Note: Schematic visualization. Each bar represents an example for the timing of run-up costs and the start of EBITDA contributions. EBITDA improvements accumulated as projects successively become P&L effective, improvements combine gross margin expansion, process optimization and cost reductions.

Fast Forward 2020Clear project design, non-linear realization

€ +20 mn EBITDA

€ +25 mn EBITDA

2020€ 120 mn EBITDA

Investments, project costs Contribution to EBITDA

H1 19 FY 19 H1 20 FY 20

Fast Forward 2020Successful implementation is a Group effort

More than 900 initiatives in more than30 countries already successfully implemented,

>300 initiatives currently running

Steered & executed by >300 initiative ownersin all 3 Business Units

On track

Already achieved

€ 75 mn

€ 45 mn

Target € 120 mn EBITDA improvement

vs. baseline 2017

Enhancing our positionin strategic growth areas

and creating value through disciplined capital allocation

› Since 2017 we have executed bolt-on deals for an average weighted EV/EBITDA multiple of 6.8x pre synergies

› Post synergies the average weighted multiple declines to 5.2x

Growth projectsStrong track record of value-creating deals

Avg. EV/EBITDA multiples

High confidence in our ability to build on this strong M&A

track record

6.77.1

4.6 4.85.2

2017 2018 H1 19 2017 - H1 19

Stand-alone multiple in the acquisition year

Multiple post synergies in the third year after acquisition

Growth projects 2019Acquisition of BPD Group

› Important further step towards becoming an integrated supplier of full-range roofing and building envelope solutions

› Acquisition of BPD grows our addressableshare of the total value of the building envelope

› BPD is a producer of

› Construction membranes

› Roof underlays

› Roof and building ventilation

› Revenue 2018: GBP 30 mn

Manufacturing Presence

BPD Group

Specialist producer of accessories for roofing solutions and thebuilding envelope

BPD will become Wienerberger’s center of excellence for roof system solutions

Group StrategyStrong track record of consistent execution

Drive profitability improvement and free cash flow

FREE CASH FLOW GENERATION

Free cash flowClear drivers for free cash flow generation

Profitability enhancement Capex Portfolio optimization

Free cash flow generation

Capital ExpendituresAnalyzing capex

› We are updating our capex reporting based on a thorough comparative analysis of our peer group

› Going forward we will differentiate between:

› Maintenance capex

› Special capex

› M&A

› Free cash flow will better represent the cash generation of our operations and the funds available for capital allocation

Clear differentiation between recurring capex needs and

discretionary investment projects

Capital ExpendituresUpdate to capex structure and terminology

€ 120 - 140 mnper year 1)

Annual guidance on investment plans Timely communication

Maintenance capex

› Recurring maintenanceinvestments

› Health & Safety

Special capex

› Fast Forward projects

› Organic growthinvestments incl. green-and brownfield investments and line extensions

› Digitalization, technological upgrades, R&D, roll-out ofinnovative products

› M&A transactions

1) In the current Group structure

Capital ExpendituresCapex bridge 2018

in € mn

158.9 M&A

Special capex

Maintenance capexNormal capex

Growth capex

Purchase of non-controlling interests

Total capex€ 325.1 mn

20182018

Capital ExpendituresUpdate to capex guidance for 2019

Recurring maintenance capex

Maintenance capex Special capex M&A

~ € 135 mn ~ € 120 mn H1 19 € 33.5 mnWe continue to work on a highly attractive deal pipeline and expect to move ahead on a number of M&A opportunities

Discretionary capex to drive future performance

Portfolio OptimizationDriver for profitability and strategic development

Portfolio analysis

Core businesses

Further development of profitable core activities based on our growth strategy

Businesses with unsatisfactory profitability and growth potential

Revenues € 350 mn

Avg. EBITDA-margin <10%

Portfolio OptimizationManagement of underperforming businesses

M&A as catalyst for repositioning

Evaluation of disposals

Repositioning within the

framework ofFast Forward

› M&A opportunities have been identified as catalysts for repositioning certain businesses and unlocking the growth potential

› Examples: German and Austrian WBS organizations

› Our Fast Forward program also is a platform for turning around businesses organically

› Examples: French plastic pipe business and Ceramic pipe business

› If our analysis suggests that a restructuring will not yield the expected returns we initiate a structured sales process

› Example: Semmelrock Austria

Sale of non-operating assets

Portfolio OptimizationTarget: € 150 mn value from disposals in 2018-2020

› These businesses commonly show several of the following characteristics

› Low growth and unsatisfactory profitability

› High degree of market fragmentation

› Limited strategic relevance for future development of Wienerberger Group

Distribution of carrying amounts as of 30/6/2019

€ 70 mn of value from disposals expected for H2 19-2020

› Structured sale processes

› Book value as of 30/6/2019: € 65 mn

Disposals of non-core businesses

WBS88%

North America

Drive free cash flow generation

› Free cash flow will better represent the cash generation of our operations and the funds available for capital allocation

› Cash conversion consistently exceeds 70%

Free cash flowSignificant impact on free cash flow

Indicative impact on free cash flow 1)

Free cash flow on average increases

by 15% 1)

2015 2016 2017 2018

Free cash flow as reported Free cash flow NEW capex definition

1) Based on our analysis 20-25% of expansionary capex has historically been reported as Normal capex. Going forward this capex will be reported as Special capex. For indicative purposes 20% of Normal capex has been reallocated to Special capex for the period 2015-2017.

in € mn

CAPITAL ALLOCATION

Capital AllocationClear allocation priorities

Capital Allocation

Return of capital to shareholders Growth projectsBalance sheet

management

Capital Allocation

management

› Our commitment to dividend payments reflecting the performance improvement of our businesses resulted in a significant increase of dividends per share

Return of capital to shareholdersStrong commitment to distributing capital

Strong increase of dividend per share 1)

Increase of dividend per share by 317%

since 20120.12 0.12

0.270.30

2012 2013 2014 2015 2016 2017 2018

in €

1) Dividend per share reported in the business year of the announcement.

› Our progressive dividendis complemented by selective share buybacks

› After buying back 2% of share capital in 2018, we retired 1% of shares in February 2019

› Between 2012 and 2018 we have on average paid out 14 % of free cash flow 1)

Return of capital to shareholdersSelective share buybacks complement dividend

Substantial increase of capital returned to shareholders

€ 275 mn of capital returned to our

shareholders since 201212 14 14

2012 2013 2014 2015 2016 2017 2018 2019

Share buybacks Dividend paid

1) Based on free cash flow using updated maintenance capex definition2) Dividends are reported in the year of the actual payout3) Indicative payout for share buyback of 1% of share capital

in € mn

› New share buyback program commenced on September 10, 2019

› We are targeting to buy up to 1% of share capital until November 29, 2019

› After completing the buyback program we will retire the acquired shares

Key data

Buyback 2019 shares 1,163,514

Percentage ofshare capital 1%

Period10/09/2019 -

29/11/2019

Minimum share price € 1.00

Maximum share price € 44.12Share buyback of upto 1% of share capital

Return of capital to shareholdersInitiation of new share buyback

Return of capital to shareholdersUpdate to guidance for distribution of capital

Previous guidance

Progressive dividend payout of 10-30% offree cash flow after hybrid coupon

Dividends

ShareBuybacks

Distribution of 20-40% of free cash flow by

means of a progressive annual dividend and

share buybacksSelective share buybacks complement the annual dividend

Updated guidance

Capital Allocation

management

› We are allocating free cash flow to reducing financial debt

› We remain committed to our target for financial discipline:Net debt / EBITDA < 2.5x at year-end

Strong equity ratio in-line with peers

Balance sheet managementDisciplined balance sheet management

Disciplined balance sheet managementand significant financial headroom

Wienerberger Peer Group Mean

45%(ex. hybrid

capital)

48%52%

Balance sheet managementBalanced and diversified funding

Diversified funding sources Balanced maturity profile (in € mn)

45%Senior bonds

22%Hybrid bond

11%Bankdebt

8%Moneymarket

7%Revolving

credit facility

7%Commercial

2019 2020 2021 2022 2023 after 2023

Maturities Cash balance

First-Call Date Hybrid

Undrawn credit lines

Note: Term structure of gross debt excluding lease liabilities and cash position as of 30/6/2019.

BondsCoupon

(in %)Volume

(€ mn)Redemption /

First Call

Bond 2013 4.00% 300 17/4/2020

Hybrid bond 2014 5.00% 272 9/2/2021

Bond 2018 2.00% 250 2/5/2024

Balance sheet managementFurther optimization of financing costs

1) Annualized improvement potential at assumed refinancing rate of 1.5%

› We have a significant potential to further optimize financing costs

› The corporate bond maturing in 2020 and the first call date of the hybrid bond in 2021 present attractive opportunities to substantially reduce financing costs

› Current rates for refinancing are in the range of 1% to 2%

› Strong free cash flow and debt instruments with most attractive terms will be used to management refinancing requirements

Up to € 17 mn of improvement potential in all-debt refinancing 1)

Pro-forma impactof hybrid call 1)

2018incl. hybrid

in equity

2018excl. hybrid from equity

Equity ratio 49% 42%

Net debt / EBITDA 1.7 2.3

Balance sheet managementIntention to exercise first call option for hybrid

1) 2018 year-end figures account for a € 40 mn impact on reported EBITDA and a € 200 mn impact on reported net debt and total assets to reflect the implementation of IFRS 16 Leases as of 1/1/2019 on a pro-forma basis.

› We intend to exercise the first call option for the hybrid bond in 2021

› Call of outstanding volume at 100%

› Strong balance sheet can easily accommodate refinancing of equity instrument with debt and cash

› We are active in the open market to retire the hybrid bond (at break-even price or better)

› Since 2016 we have bought back€ 12.9 mn of the hybrid bond

Most significant opportunity to optimize financing costs and

financing structure

Capital Allocation

management

› Successful track record of value creating bolt-on acquisitions

› Structured and disciplined approach to evaluation of transaction targets

› Financial headroom to move decisively on value-creating opportunities

Strict capital discipline

Growth projectsFocus on value creation and strategic development

We are evaluating a promising deal pipeline and are looking to move

beyond our focus on bolt-on acquisitions of recent years

2013 2014 2015 2016 2017 2018

Net debt / EBITDA

Internal threshold

1) Net Debt / EBITDA on a pro-forma basis including an adjustment of € 200 mn to reported Net debt and of € 40 mn to reported EBITDA to reflect the implementation of IFRS 16 Leases as of 1/1/2019.

Financial headroom

Growth projectsSteady pipeline of bolt-on acquisitions

› Steady pipeline of bolt-on acquisitions, eachwith an enterprise value of below € 50 mn

› Strategic focus on core regions and products to drive

› Market consolidation

› Improvement of market positions

› Further development of our product portfolio

› Seamless integration into our strong operating platforms and full realization of expected synergies

Discretionary bolt-ons financed from free cash flow

Bolt-on acquisitions

Growth projectsAttractive opportunities to step beyond bolt-ons

› More sizeable transactions in core businesses need to

› Show strong strategic and cultural fit with manageable integration risk

› Represent fundamental extensions to existing platformsor constitute the establishment of new platforms

› Evaluation of opportunities to expand our portfolio beyond existing core businesses and to grow our share in the value chain

› Disciplined use of financial headroom

Attractive opportunities

Discretionary mid-sized acquisitions

EXECUTIVE SUMMARY

Excellent progress on Fast Forward ProgramConfident in delivery of € 120 mn EBITDA enhancement

Strict spending disciplineMaintenance capex of € 120 - 140 mn

Performance

Strong M&A track record below Group multipleEV/EBITDA multiple post synergies of ~5x

Value creation

Sustainable value creation for our shareholdersDistribution of 20-40% of free cash flow

Strong commitment to disciplined financial policy

Focus on free cash flow

Growth

Attractive deal-pipeline for discretionary bolt-on andmid-sized acquisitions

Significant potential to drive organic growth through innovation and digital transformation

Wienerberger Investor RelationsWienerbergstrasse 111100 Vienna, AustriaT: +43 1 60 192 10221investor@ Wienerberger.com

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