EQS-News: Wienerberger AG / Key word(s): Annual results wienerberger asserts itself in declining construction markets and meets expectations 02/21/2024 / 07:00 CET/CEST The issuer/publisher is responsible for the content of the announcement. ═════════════════════════════════════════ ═════════ ════════════════════════ wienerberger asserts itself in declining construction markets and meets expectations Highlights 2023 • Total sales €4.2 billion, operating EBITDA €811 million • Strong results through increased activity in the pipe sector for infrastructure for energy and water management as well as in the renovation business demonstrate resilience and successful strategic direction • Dividend proposal for 2023: €0.90 per share Strategy and outlook 2024 • Focus on sustainable growth, portfolio optimization and profitability • After Terreal takeover rapid expansion of business activities in the renovation segment as the leading European pitched roof expert for innovative roof and solar solutions • Ongoing improvement of ESG performance as part of the 2026 Sustainability Program Vienna, February 21, 2024 – In the particularly challenging market environment of 2023, wienerberger demonstrated an exceptionally good performance Development. The company met expectations, outperformed its end markets and generated operating EBITDA of €811 million and total sales of €4.2 billion after the record year of 2022. This strong result was primarily achieved through increased activity in the infrastructure segment, in the pipe segment for energy and water management applications and in the renovation segment. The new construction segment, particularly in Europe, recorded a sometimes sharp decline as a result of significantly higher interest and inflation rates. North America, on the other hand, proved more resilient and made a solid contribution to earnings. The company intervened very quickly in the entire cost management process, which contributed to the good results. The self-help program, which has been in place for years to increase earnings and improve efficiency, contributed a further €46 million to the result. In addition, new technological optimizations were implemented that reduced energy consumption and thus not only saved costs, but also reduced CO2 emissions. These solid results once again demonstrate the resilience of wienerberger’s sustainable and diversified business model, with which the company can assert itself even in a difficult market environment. “In the 2023 financial year, wienerberger once again outperformed its markets and successfully maintained its own position. Operating EBITDA of €811 million meets our expectations. To strengthen our resilience, we have focused on creating a balanced portfolio, particularly by expanding renovation and infrastructure. Our proactive cost management, our innovations and diversification towards ecological new construction, energy-efficient renovation and water and energy management are also paying off. By enabling the creation of affordable living space, continuously improving people’s quality of life and proactively responding to the challenges of climate change and its effects, wienerberger itself is part of the solution and therefore even more sustainable and successful,” emphasizes Heimo Scheuch, CEO of Wienerberger AG. Development in the Western Europe business segments: With external sales of €2.2 billion (2022: €2.5 billion), an operating EBITDA of €378 million (2022: €426 million) was achieved in the region in 2023. earned. The 2023 financial year was characterized by persistently high inflation and rising interest rates. In the new construction segment, demand fell particularly in Germany, while France, Belgium and the Netherlands continued to record satisfactory demand in the first half of the year. In the infrastructure sector, there was a decline in public contracts in almost all countries due to inflation. However, the increased share of the wastewater system business and the profitable growth in the renovation business had a positive impact on the company’s performance. With the takeover of the Danish Strøjer Group in the second quarter and the company Komproment ApS, which was acquired in the first quarter, wienerberger was able to further expand its sustainable range of innovative facade solutions – and thus its market shares in the Nordic countries. The acquisition of Wideco Sweden, also completed in the second quarter, expands the range of energy and water management solutions in Scandinavia. All acquisitions delivered pleasing earnings contributions in the second half of the year. Eastern Europe: The external sales achieved in the financial year totaled €1.2 billion (2022: €1.5 billion). Operating EBITDA was €220 million in 2023 (2022: €372 million). From the second half of the year onwards, there were signs of a decline in inflation and interest rates in Eastern Europe. The continued greatly reduced real purchasing power of the public sector and private households had a negative impact on wienerberger’s end markets, with new construction being particularly hard hit. The markets in Southeastern Europe were an exception, where both sales and earnings increased. Demand in the infrastructure sector was stable overall, although there are still significant delays in the implementation of projects due to limited budget resources in the public sector. North America: In the 2023 financial year, wienerberger recorded external sales of €838 million (2022: €945 million) and an operating EBITDA of €213 million (2022: €223 million). In a sluggish market environment, wienerberger was able to successfully expand its market shares and increase the operating EBITDA margin from 23.6% in the previous year to 25.5% in 2023 through proactive cost and price management. In the long term, the need for living space remains high. Nevertheless, the high interest rate level dampened demand in 2023, especially in the new construction segment. In the infrastructure sector, however, wienerberger recorded a significant increase in demand in the second half of the year. Sustainability as a strategic and operational focus of business development Sustainability has always been an integral part of wienerberger’s corporate strategy. After the goals set for 2023 were met, they were further developed for 2026. Wienerberger’s new, three-year sustainability program includes expanded environmental and social topics and uses the company’s sustainability goals as a basis for further organic growth. This applies both to internal processes and to creating social benefits, for example by offering products to increase energy efficiency and climate resilience. The program is aligned with the right strategic and operational goals for sustainable business development, including increasing sales of products for climate-neutral and zero-emission buildings as well as water and energy management and promoting diversity and inclusion. wienerberger is committed to generating 75% of its sales from building systems and solutions that contribute to the creation of climate-neutral and emission-free buildings by the end of 2026. These include integrated solutions for roofs, walls and facades as well as for heating, cooling and solar power generation. Dividend and Outlook 2024 Given the strong results for 2023 and the company’s attractive dividend policy, the Board of Directors will propose to the Annual General Meeting the distribution of a dividend of €0.90 per share for the 2023 financial year. By acquiring Terreal, a successful European provider of innovative roofing and solar solutions, wienerberger will significantly expand its presence in the growing renovation segment and become the leading European expert for pitched roofs. In total, the transaction involves around 3,000 employees, 28 production sites and an expected annual turnover of approximately €740 million. wienerberger is confident that the transaction will be completed in the first quarter of 2024. Thanks to the preparations already made in 2023, the company has taken all the necessary measures to ensure the rapid and efficient integration of Terreal immediately after the closing. In order to secure its high profitability, wienerberger intends to continue to grow significantly faster in 2024 than the respective end markets as a whole through its range of innovative and ecological solutions for renovation, infrastructure and new construction. The company will continue to focus on proactive cost management, successful price adjustments and the continuation of the proven Self Help program. Based on the two assumptions that the market development observed in the fourth quarter of 2023 will continue in 2024 – especially in the first half of the year – and that Terreal will make a positive contribution to earnings from the second quarter of 2024, an operating EBITDA for the full year 2024 will be in the range of 860- €890 million expected. The full 2023 annual report will be published on March 25, 2024. wienerberger wienerberger is a leading provider of innovative, ecological solutions for the entire building envelope in the areas of new construction and renovation as well as for infrastructure in water and energy management. With more than 19,000 employees worldwide, wienerberger’s solutions enable energy-efficient, healthy, climate-friendly and affordable living. wienerberger is the largest brick producer in the world and market leader for clay roof tiles in Europe and for concrete paving in Eastern Europe. The company is one of the leading providers in Europe for pipe systems (stoneware and plastic pipes). With the acquisition of Meridian Brick, wienerberger has further expanded its position as a leading provider of facade products in North America. With more than 200 production locations across the group, wienerberger generated sales of around €4.2 billion and an operating EBITDA of €811 million in 2023. Inquiry note Claudia Hajdinyak, Head of Corporate Communications Wienerberger AG t +43 664 828 31 83 | claudia.hajdinyak@wienerberger.com
Investor Relations Wienerberger AG
t +43 1 601 92 – 10221 | investor@Wienerberger.com ════════ ═══════════════════════════ 02/21/2024 CET/CEST Publication of a corporate news/financial announcement, transmitted by EQS Group AG. www.eqs.com
═════════════════════════════════════════ ═════════ ════════════════════════ Language: German Company: Wienerberger AG Wienerbergerplatz 1 1100 Vienna Austria Telephone: +43 1 60 192-0 Fax: +43 1 60 192-10159 Email: investor@wienerberger.com
Internet: www.wienerberger.com
ISIN: AT0000831706 Stock exchanges: Vienna Stock Exchange (official trading) EQS News ID: 1841141 End of announcement EQS News Service 1841141 February 21, 2024 CET/CEST