Wienerberger Group. Wienerberger Today. A growth company An international leader in bricks and roof tiles. With an international shareholder structure

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1 Wienerberger Group July, 2005 Wienerberger Today A growth company An international leader in bricks and roof tiles Bricks: Roofing systems: No. worldwide No. 2 in Europe With an international shareholder structure

2 Core Products & Markets Hollow Bricks - New residential construction (85%) - Local business (r = 200 km) - Technical product for load-bearing walls - Renovation (>50%) - New residential construction (<50%) - Regional business (r = 800 km) - Aesthetic product Roof Tiles 37% of revenues 04 8% of revenues 04 Facing bricks 40% of revenues 04 - New residential construction (70%) - Commercial construction (30%) - Regional business (r = 500 km) - Aesthetic product - Private sector - Public sector - Regional business - Aesthetic product Pavers Clay and Concrete 5% of revenues 04 Developments 2004 Sleep well with Wienerberger.

3 2004 in Review - Free float company (~95%) - Successful capital increase - Accelerated growth ( 543 mill. ) Significant earnings improvement 2004 Revenues and EBITDA by Segment Revenues:,758.8 mill. (+4%) EBITDA: mill. (+2%) Inv. & Other -% USA 6% Central- East Europe 28% Inv. & Other -4% USA 5% Central- East Europe 35% North- West Europe 36% Central- West Europe 2% North- West Europe 33% Central- West Europe 2%

4 Earnings per Share ,0 Adjusted Earnings per Share (in ) ,0 CAGR = 45% %, , Note: adjusted for goodwill amortization and non-recurring items Wienerberger Value Management ROCE: 9.7% (adjusted: 0.3%) (2003: 8.7%) CFROI: 2.9% (adjusted: 3.4%) (2003: 2.7%)

5 One who never sleeps: Wienerberger. Strategy and Outlook Wienerberger The Growth Company Focus on bricks and roof tiles WB is the logical consolidator in the industry Operating presence on most markets, many opportunities for bolt-on projects Unique access to profitable growth

6 Free Cash Flow and Maintenance Capex EBITDA Change in working capital Earnings Interest Taxes Free cash flow Depreciation Maintenance Capex c60% of depreciation The Two Fundamentals of the Wienerberger Strategy Wienerberger Growth Strategy Maximization Free Cash Flow Growth Projects

7 Growth Strategy by Region Increase market share (in all regions) New markets (RUS, UKR, BUL, etc.) Profitable Growth Grow with market (Central-East, USA) Market consolidation (Central- and North-West) The Wienerberger Group Goals Annual sustainable base growth : EBITDA & EPS: min. +0% p.a. Sustainable target levels: EBITDA margin: >25% ROCE: >0% Gearing: 60 80%

8 Track Record Earnings Growth 400 EBITDA in mill CAGR = 4% The development shows clearly that Wienerberger s sustainable growth strategy beat its target by a substantial margin every year The Year Quarter Outlook Full-Year The year 2005 began on a quiet note as expected.

9 Results for the st Quarter 2005 in mill. -3/2004-3/2005 Chg. % Revenues 32,3 333,8 +7 EBITDA 5,9 54,3 +5 EBIT 2,6 6, -25 Profit after Tax,0 9,3-5 st Quarter 2005 Q 2005 neutral (distorted comparison due to strong Q 2004) Limited importance for full-year 2005 (share Q: revenues < 20%, EBITDA < 5%) Goal 2005: min. +0% in earnings unchanged

10 Global Economy in 2005 Global development Slowing dynamics No highlights Sideways movement Central-East Europe Outlook 2005 Austria: Czech Rep.: Hungary: Poland: Slovakia: Stable new residential construction Focus on optimization and cost efficiency Strong market, further growth and earnings increase Market uncertainty, decreasing earnings but on high level, consolidation opportunities Weak market but increase of market position, future growth potential Sustainable demand in residential construction, earnings growth

11 Central-East Europe Outlook 2005 Slovenia/Croatia: Price pressure and market consolidation, stabilization of earnings, increase position Romania: Market growth, increasing market share as well as earnings Russia: Greenfield plant in Kiprewo (Moscow area) under construction UKR / BUL: Market entry in preparation Concrete Pavers: Expansion, earnings growth Concrete Roof: Continuous optimization Central-West Europe Outlook 2005 Germany: Italy: Switzerland: Expected decline in all forecasts Continued consolidation Expansion clay roof tile activities Maintaining strong earnings level Stable positive expectations

12 North-West Europe Outlook 2005 Belgium: France: Netherlands: UK: Earnings increase in a growing market environment Positive environment, earnings growth through product and capacity optimization Recovery by year-end expected, earnings growth through optimized product range and consolidation Market slow-down, full integration TBB North Europe: Stable economic environment, increase market position in Denmark USA Outlook 2005 Continued strong demand Ongoing development of plant network (mega plants) Continued expansion of direct distribution

13 Wienerberger Outlook 2005 Summary Robust development through geographic portfolio Important focus on: - Products & marketing - Technology & costs Continuation of profitable growth course - Bolt-on projects 05 for 250 mill. - Larger acquisitions if available Increase in operating earnings Running or Realized Growth Projects 2005 Region/Product # Project Category Central-East Europe 7 Greenfield or expansion Hollow Bricks Greenfield or expansion Facing Bricks 3 Greenfield or expansion Pavers Central-West Europe Optimization plant network Hollow Bricks Acquisition 2 plants Roofing North-West Europe 6 Cap. exp. B, NL, F, UK, EST Facing Bricks Capacity expansion (F) Roofing USA 4 Concept mega plants Facing Bricks Total 24 (8 HB, FB, 2 Roof, 3 Pavers)

14 Why Invest in Wienerberger? Strong presence in 3 regions - Strong position in West-Europe - Profitable CEE exposure - Participation in US-growth Top-quality and innovative products Technological leadership - Cost advantage of up to 20% (even higher in CEE) High free cash flow Track record in profitable growth - Since 990: > 00 projects realized and integrated Experienced and motivated management Strengths of Wienerberger Stock Solid Basis - Profitability / TSR - Profitable Growth 0% p.a. - Sustainability / Stability (geographic portfolio)

15 Sleep well. Invest in bricks. Wienerberger Investor Relations Wienerberger AG, A-00 Vienna, Wienerbergstrasse T , F investor@wienerberger.com Appendix: Products and Markets

16 Hollow Bricks Traditional Main Product in Continental Europe Hollow bricks: single-leaf wall construction Hollow Bricks Product Characteristics Single-leaf construction method Technical features: - Thermal insulation - Sound protection - Statics Key markets in Europe: - Italy, Germany, Austria, Switzerland, France, Belgium - Poland, Hungary, Czech Republic, Romania, Russia Primarily dependent on housing starts (85%) Local business (supply radius = 200 km)

17 Facing Bricks Main Product in UK and North-West Europe Facing bricks: cavity or double-leaf wall construction Facing Bricks Product Characteristics Cavity or double-leaf construction method Design/trends as features - a fashion product Key markets: - Western Europe: UK, B, NL, North GER, DK - CEE: PL (East), RUS, UKR - USA: world s largest market Used in new residential construction (70%) and non-residential construction (30%) Regional business (supply radius = 500 km)

18 Clay Roof Tiles Product Characteristics Rising market share vs. concrete in basically all markets Consolidation well advanced in Europe (except in Germany) Key markets in Europe: - All of Western Europe excl. UK - Entire region of Eastern Europe excl. CIS Over 50% of revenues through renovation less cyclical than new residential construction Regional business (supply radius = km) Concrete Pavers Product Characteristics Potential in infrastructure sector Fragmented commodity industry with low entrance barriers Key markets: entire region of Eastern Europe Use in new residential construction, commercial construction and infrastructure Regional business (supply radius up to 300 km)

19 Hollow Bricks = monolithic walls Continental Europe Russia and China Latin America North and Central Africa Facing Bricks = cavity walls North America: 30 % UK: 20 % Northwest Europe: 20 % Remainder: other markets South Africa: 0% Australia: 5%

20 Wienerberger Brick Markets 2005 Europe Total Europe No. 2 Market position in hollow bricks and/or facing bricks 3 4 Wienerberger Brick Markets 2005 USA Market position Wienerberger per state North-East 5% West 2% Mississippi Midwest 7% South-West 23% Total US No. 2 3 Note: figures with region = brick consumption within USA South-East 53%

21 Wienerberger Roofing Markets 2005 Europe Roofing Systems 00% Export Markets Roofing JVs Bramac (50%) and/or Tondach Gleinstätten (25%) Market position in clay roof tiles and/or concrete roof tiles Total Europe No Strength through Geographic Portfolio 20% Revenues split per country in % (2005e) 5% 0% Max: USA with ~5.5% Min: Bosnia with ~0.% 5% 0% USA G NL B F UK PL CZ HUN Bramac S-rock CH I AT Scan SK FIN&Bal HR ROM SLO BH

22 Core Products Competitive Structure Hollow Bricks - No competing international group - Mainly family businesses / smaller groups emerging Facing Bricks - Europe: family businesses, CRH and Hanson (UK only) - USA: 5 major players totaling 65% market share (Boral, Wienerberger, Acme Bricks, Hanson and CRH) Roof Tiles - 4 European groups: Lafarge, Imerys, Terreal (all F), Etex (UK) - Mid-size companies like Creaton (GER) Core Products Market Share and Size Wienerberger Markets Hollow Bricks Europe Market share bricks 59% Market value (in bn.) Market share WB 2.8 ~25% Facing Bricks Europe 37% 2. ~23% Facing Bricks USA 20%.4 ~5% Clay Roof Tiles Europe 38% 2.3 ~3% Source: company estimates

23 Shareholder Structure Regional Split % 8% 8% 2% 2% % 2% 33% UK USA A GER F Nordic CH Benelux ROW 23% Note: analysis from October 2004, BA-CA exchangeable was split up according to other regional distribution