Wienerberger : Update on the 1st Quarter 2021 | PDF 5 MB

2 0 2 1 | 1 s t Q u a r t e r U p d a t e

Update on the First Quarter 2021

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Key Performance Indicators

Earnings Data		1-3/2021	1-3/2020	Chg. in %	1-12/2020
Revenues	in MEUR	796.5	793.3	0	3,354.6
EBITDA LFL 1)	in MEUR	107.2	107.7	0	559.6
EBITDA	in MEUR	106.4	106.1	0	558.0
Operating EBIT	in MEUR	48.8	40.5	+20	305.1
Impairment charges to assets	in MEUR	0.0	-22.5	>100	-22.3
Impairment charges to goodwill	in MEUR	0.0	-93.6	>100	-90.4
EBIT	in MEUR	48.8	-75.5	>100	192.5
Profit before tax	in MEUR	39.7	-84.2	>100	148.7
Net result	in MEUR	27.3	-106.3	>100	88.5
Earnings per share	in EUR	0.24	-0.94	>100	0.79
Free cash flow 2)	in MEUR	-138.2	-162.2	+15	397.3
Maintenance capex	in MEUR	21.6	22.9	-6	125.9
Special capex	in MEUR	12.2	11.5	+6	75.2
Ø Employees	in FTE	17,039	17,192	-1	16,619
Balance Sheet Data			31/3/2021	31/12/2020	Chg. in %
Equity 3)		in MEUR	1,802.6	1,749.0	+3
Net debt		in MEUR	1,047.6	882.1	+19
Capital employed		in MEUR	2,816.3	2,594.1	+9
Total assets		in MEUR	4,234.9	4,327.0	-2
Gearing		in %	58.1	50.4	-
Stock Exchange Data			1-3/2021	1-12/2020	Chg. in %
Share price high		in EUR	31.20	28.26	+10
Share price low		in EUR	26.16	11.59	>100
Share price at end of period		in EUR	31.20	26.08	+20
Shares outstanding (weighted) 4)		in 1,000	112,266	112,680	0
Market capitalization at end of period		in MEUR	3,593.9	3,004.1	+20

Operating Segments 1-3/2021	Wienerberger	Wienerberger	North	Group	Wienerberger
in MEUR and % 5)	Building Solutions	Piping Solutions	America	eliminations	Group
External revenues	478.5	(-4%)	240.7	(+9%)	76.5	(+7%)		795.7	(0%)
Inter-company revenues	0.8	(0%)	0.1	(-19%)	0.0	(0%)	0.0	0.8	(+1%)
Revenues	479.3	(-4%)	240.8	(+9%)	76.5	(+7%)	0.0	796.5	(0%)
EBITDA LFL	76.8	(-8%)	21.2	(+13%)	9.2	(+81%)		107.2	(0%)
EBITDA	78.0	(-5%)	21.2	(+14%)	7.2	(+32%)		106.4	(0%)

1. Adjusted for effects from consolidation, FX, sale of core and non-core assets as well as structural adjustments // 2) Cash flow from operating activities less cash flow from investing activities and cash outflows from the repayment of lease liabilities plus special capex and net payments made for the acquisition of companies //

1. Equity including non-controlling interests // 4) Adjusted for treasury stock // 5) Changes in % to the comparable prior year period are shown in brackets

Explanatory notes to the report: Rounding differences may arise from the automatic processing of data.

Update on the First Quarter 2021

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First quarter 2021 results

Highlights

• Successful Q1 performance at Group level driven by high demand for our innovative solutions for buildings and infrastructure, despite weather-related delays in project starts
• Revenues of € 796.5 million matched the previous year's record level (2020: € 793.3 million); EBITDA LFL stable
  at € 107.2 million (2020: € 107.7 million) in a challenging market environment
• The financial year 2021 will still be impacted by Covid-19-related developments, rising raw material prices, and bottlenecks in the supply of plastic granulates, but we expect a gradual easing throughout the year
• Positive market developments expected to continue throughout 2021; Wienerberger looks to the future with opti- mism and projects EBITDA LFL in the range of € 600 to 620 million for the full year

Heimo Scheuch, CEO, on the result:

"We generated outstanding results in the first quarter, which follow on from the strong performance of the previous year, demonstrating that in recent months we have reacted swiftly and appropriately to the challenging environment. Business in the new build and infrastructure segments was somewhat slower at the beginning of 2021, but was quickly made up for by an excellent March. The first months of the year were characterized by increased renovation activity across all of our markets, where we benefited substantially from our innovative product so- lutions. These enable us to create sustainable added value and benefits for our customers in line with our Strategy 2023. I am also pleased that the Business Unit North America recorded one of the most successful first quarters in its entire history.

Beyond that, we have succeeded in positioning Wienerberger Piping Solutions as the leading provider of comprehensive solutions for energy and water management in Northern Europe. The acquisition of Inter Act has enhanced our ability to offer smart, digitally-enabled solutions in our markets. We can thus meet the requirements and needs of our customers even better and, in addition, also support the EU in implementing its climate change adaptation strategy.

In view of the above, our outlook for 2021 is positive. We expect to benefit from favorable market developments throughout 2021 and we are looking to the future with optimism. In the short-term, all Business Units are also benefitting from catch-up effects due to the slower start at the beginning of the year. We are cautiously optimistic about public stimulus programs for all core segments but we anticipate that overall market fundamentals will support future growth. This is best illustrated by recent developments in the renovation markets and in the infrastructure segment, which are delivering a solid performance, which is projected to continue. In addition, in North America we observe a fast recovery in all core segments, supported by growing numbers of building permits and public stimulus programs, as well as continously low mortgage rates.

Our resilient supply chain structures, including local sourcing and successful hedging policies in all our Business Units, will continue to provide some level of protection from rising input prices. Concerning the availability of raw ma- terials, especially the shortage of plastic granulate, we expect that the markets will gradually ease throughout the year, thus not dampening the overall positive outlook for 2021. Therefore, we reaffirm our EBITDA LFL guidance for 2021 of € 600 to 620 million."

Update on the First Quarter 2021

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Financial Review

Earnings

Wienerberger generated revenues of € 796.5 million in the first three months of the 2021 business year. The Wienerberger Group outperformed its expectations and succeeded in surpassing the previous year's value

(2020: € 793.3 million), despite negative foreign exchange effects. In the first quarter, negative currency translation effects amounted to a total of € -18.4 million and were primarily attributable to the depreciation of the US dollar, the Turkish lira, the Polish zloty, and the Hungarian forint.

EBITDA LFL amounted to € 107.2 million, despite a challenging market environment, thus remaining stable at the previous year's level (2020: € 107.7 million). In each of the three Business Units of the Wienerberger Group, challenges such as increasing raw material prices and unfavorable weather conditions could be offset by proactive margin manage- ment, optimized supply chains, and robust demand for renovation and infrastructure solutions, all of which contributed to the solid result of the first quarter of 2021.

EBITDA LFL does not include negative foreign exchange effects of € -2.5 million, structural adjustment costs of

• -1.7million, results from the sale of real estate in the amount of € 3.1 million, and consolidation effects of € 0.3 mil- lion. EBITDA reported by the Wienerberger Group in the first quarter therefore amounted to € 106.4 million, as com- pared to the previous year's value of € 106.1 million. The operating result before interest and tax (operating EBIT) in- creased to € 48.8 million, which corresponds to a 20% improvement over the previous year's level (2020: € 40.5 million). In the first quarter of 2021, EBIT was equivalent to operating EBIT, whereas in the previous year impairment charges on goodwill and tangible assets of € 116.1 million had to be taken into account, which resulted in negative EBIT of € -75.5 million. The financial result declined slightly from € -8.7 million in the previous year to € -9.1 million. The Group closed the first quarter of 2021 with a profit before tax of € 39.7 million (2020: € -84.2 million). Adjusted for the tax expense of € -11.4 million, the profit after tax amounted to € 28.3 million (2020: € -103.4 million). Earnings per share amounted to € 0.24 (2020: € -0.94).

Cash Flow

Based on the Group's strong operating performance, gross cash flow increased by 14% to € 84.3 million compared to the previous year. Given the seasonal increase in working capital, cash flow from operating activities was negative at

• -119.3million (2020: € -129.8 million). As a result of the repayment of the hybrid bond in the amount of
• -214.6million, cash flow from financing activities was nega- tive as well at € -147.2 million (2020: € 184.0 million). Over- all, this led to a change of € -287.7 million in the Group's cash position (2020: € 20.3 million).

Assets and Financial Position

As compared to 31/12/2020, the Group's net debt increased from € 882.1 million to € 1,047.6 million, primarily due to the seasonal increase in working capital. At the same time, the Group's equity increased by € 53.6 million from its 2020 year-end level to € 1,802.6 million at the end of the first quarter of 2021.

Update on the First Quarter 2021

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Operating Segments

Highlights

• Sustainable demand in new construction and renovation supported satisfactory results for the Wienerberger Building Solutions Business Unit
• Wienerberger Piping Solutions Business Unit delivered strong performance, thanks to high demand for infrastruc- ture and in-house solutions despite rising raw material prices
• Record result for the North America Business Unit based on strong regional growth in both new construction and infrastructure business

Wienerberger Building Solutions

Despite unfavorable weather conditions, the Business Unit stayed on track, continuing its strong performance of the previous

year and reporting a satisfactory start to 2021. Revenues declined slightly by 4% to € 478.5 million (2020: € 500.4 million). EBITDA LFL amounted to € 76.8 million (2020: € 83.9 million). Initially, the development of business was slowed down by the late

Key Financials	1-3/	1-3/	Chg.
in MEUR	2021	2020	in %
External Revenue	478.5	500.4	-4
EBITDA LFL	76.8	83.9	-8
EBITDA	78.0	81.9	-5
EBITDA LFL Margin	15.8%	17.1%	-1.2pt

onset of winter in January and February. However, demand re-

turned to a strong level in March. The strong renovation activities resulted in particularly high demand for our innovative solutions, with plants operating at a high level of capacity across all markets. We continued to see Covid-19-relatedcatch-up effects in some markets, with remaining high demand. In most of our markets, we succeeded in covering cost inflation through price increases.

The Western European core markets, which were hit particularly hard by the government-imposed lockdowns in 2020, also performed well overall. Great Britain, our biggest market, returned to its pre-Covid record level, driven by positive market development in residential construction. In France, increasing demand in all product groups translated into growth in earnings. The strict emission control laws in the Netherlands, amongst others, continued to slow down the pace of housing construction activities. However, these effects were largely offset by continuing high demand for our innovative solutions in the roof tile and paver segments. Belgium reported a particularly good start to 2021, supported by the country's stable economic development and high demand for our renovation solutions. In Germany, we continued to focus on our commercial excellence measures; market developments were impacted by weather-related delays in project starts.

In our Eastern European core markets, the harsh winter experienced in certain regions accounted for a late start to the construction season, but operations saw significant catch-up effects in March. In Hungary, state aid programs for families facilitated renovations and construction projects; together with slight Covid-19-relatedcatch-up effects, this made for a good start to 2021. In contrast, Poland experienced harsh winter weather and delivered a weaker performance in a volatile market environment. Our Southern European markets recovered from the impacts of government- imposed lockdowns, with market conditions being satisfactory overall and only slightly below the high level of the previous year.