Wienerberger in Germany

Transcription

1 Wienerberger in Germany Press Trip 2006 October 11, 2006 Your Discussion Partners Wolfgang Reithofer CEO Wienerberger AG Heimo Scheuch COO Wienerberger AG Klaus Hoppe Managing Director Wienerberger Ziegelindustrie GmbH (D) Johannes Edmüller Managing Director Schlagmann Baustoffwerk GmbH & Co. KG 2 1

2 Your Discussion Partners Thomas Melzer Head of Corporate Communications Wienerberger AG Sandra Bauer Public Relations Wienerberger AG Axel Stotz Marketing Director Wienerberger Ziegelindustrie GmbH (D) Rolf Hermannsdörfer Chief Engineering Officer Bayerische Dachziegelwerke Bogen GmbH 3 Content Wolfgang Reithofer The importance of Germany in the Wienerberger Group Heimo Scheuch The German construction market in the European context Klaus Hoppe The Wienerberger strategy in Germany Johannes Edmüller Schlagmann as a family company in the Wienerberger Group 4 2

3 The importance of Germany in the Wienerberger Group Wolfgang Reithofer Wienerberger Today A growth company that is focused on bricks and roof tiles Bricks: Clay roof tiles: Number 1 in the world Number 2 in Europe with an international shareholder structure 6 3

4 Results for the First-Half of 2006 Revenues: 1,011.9 mill. (1-6/05: %) EBITDA: Mio. (1-6/05: %) Profit after tax: 81.1 mill. (1-6/05: %) Free cash flow: 15.0 mill. (1-6/05: >100%) 7 How internationalization started: In the beginning, there was Germany Start of internationalization: market entry into Germany 1996 Acquisition of Terca facing bricks (Benelux) Koramic as controlling shareholder 2004 WB becomes 100% free float company Acquisition of thebrickbusiness (UK) Expansion into Eastern Europe Global Player: acquisition of General Shale Acquisition of Koramic Roofing Roof tiles as 2nd core business /

5 20 years of Wienerberger in Germany (I) June 1986: Acquisition of the Oltmanns Group with - Bricks - Plastic pipes Bricks: Wienerberger clear market leader Plastic pipes: development of Pipelife Group 9 20 years of Wienerberger in Germany (II) : development phase - Purchase of brick plants in North Germany - Development of nation-wide market position : boom in Germany = 80% of Wienerberger profit - Financing for expansion in Eastern Europe : slump in residential construction consolidation on hollow brick market - Price war - Acquisition of BTS - Acquisition of Megalith 10 5

6 I 20 years of Wienerberger in Germany (III) : strengthening of hollow brick market - Stronger market position for Wienerberger in spite of slowdown in residential construction Beginning in 2003: Wienerberger Germany - from POROTON supplier to leading company for bricks and roof tiles Acquisitions in roof tile segment: - Koramic Roofing - F. v. Müller - Bogen - Jungmeier 11 Wienerberger Germany in international comparison share of Group revenues Data in % Group revenues 2005: 1,954.6 mill A PL HU CZ SK RO HR SLO Central- East Europe Bramac Semmelrock G CH Central- West Europe B NL F UK N-Europe North- West Europe USA USA 12 6

7 Wienerberger Germany Today & Tomorrow One of the most important markets in the European construction industry Largest single market for the Wienerberger Group in Europe with a strong brick orientation Optimal position as a full supplier Clear focus on expansion of our market positions with existing products & related product groups 13 Wienerberger in Germany Press Trip 2006 I Heimo Scheuch October 11,

8 The German construction market in the European context Heimo Scheuch Construction industry Global environment European construction sector on growth course Recovery in construction activity in Germany (temporary/lasting)? Further rise of interest rates in the euro zone US residential construction in temporary (?) slowdown Quelle: Man Securities, May

9 A review of Wienerberger s development in Western Europe. Strong organic growth Implementation of over 50 projects Integration of many different corporate structures Development of strong brands/markets Leadership in product innovation 17 Wienerberger in Western Europe (D/F/B/NL/GB) Today Strong Wienerberger structures in the major markets D, F, B, NL, GB Solid basis for further growth Clear strategic focus 18 9

10 Western Europe a mature market Optimization Use of all opportunities for market consolidation Investments of ca. 200 million for - Acquisitions - Expansion, renovation and new construction *) North-West Europe Region *) Excl. Baggeridge 19 Strong growth by Wienerberger in the major West European markets (D/F/B/NL/GB) Development of revenues D/F/B/NL/GB in mill CAGR*: 26% * CAGR = compound annual growth rate 20 10

11 Germany is the largest market in Europe based on construction volume Share of countries in European construction volume for 2006 in % IR P CH A 2% East 2% 3% 2% Europe 4% NL 5% D 17% Scandinavia 8% GB 16% Source: Euroconstruct, June 2006 E 13% I 14% F 14% 21 Development of Wienerberger in Germany 11

12 Wienerberger Germany is the largest single market in Europe 12% of Group revenues Approx. 2,000 employees Germany = largest single market for the Wienerberger Group in Europe Optimal position as a full range provider 23 Growth of Wienerberger Germany Development of revenues in Germany in mill. 300 CAGR*: 8% * CAGR = compound annual growth rate 24 12

13 Acquisitions Brand Policy Mauerziegel 25 Brand Policy Umbrella brand Product brands 26 13

14 Outlook for Wienerberger Germany Signs of recovery: upturn in business & consumer confidence The German construction sector: business & consumer confidence Highest level of confidence in the economy since 1991 Highest level of consumer confidence since December 2001 despite rising energy prices 28 14

15 Houses are becoming more affordable The German construction sector: affordability of houses Very low interest rates by historical standards, likely to boost mortgage demand House-price to income and houseprice to rent ratios dropped sharply 29 Slight rise in building permits The German construction sector: building permits Pick-up in building permits in second half of 2005, only partially related to scrapping of the first-home-buyer allowance 30 15

16 Potential on the Germany residential market Housing units per 1,000 residents 2006e 7,0 7,1 6,0 5,0 4,0 Upside Potential 5,1 5,2 West European average: 5.7 4,6 3,4 3,0 2,6 2,0 1,0 0,0 Germany Austria Belgium France Holland UK 31 Summary (I) Recession in the German construction sector will end in 2006 Length of recession in Germany is due to cyclical and structural factors - Construction boom in mid-1990 s (reunification) - After reunification, high unemployment and social uncertainty - Tense budget situation (reduction in public spending, e.g. homebuilders allowance) - Lack of consumer confidence - Only moderate growth through exports, lack of domestic demand 32 16

17 Summary (II) New residential construction - Steady decline since Clear recovery in 2006 with rising consumer confidence, end of homebuilders allowance and advance purchases before VAT increase in sideways development or slight decline expected - Beginning in 2008 new residential construction should slowly approach the long-term average (2005: 210,000, average: 350,000) Renovation - More stable development than new residential construction, but impulses are missing - Moderate growth rates expected for the coming years 33 Summary: analysts comments After a decade of decline, the German construction sector looks set to rebound. Unlike in earlier episodes that saw a shortlived pick-up in construction activity, this time there are good reasons to believe the recovery is genuine. This broadens the domestic leg of the ongoing recovery, making the economy less vulnerable to external shocks and increases our confidence that 2006 will be a year of abovetrend growth for the economy. Goldman Sachs, March 30, 2006 We do suspect that there is now sufficient evidence to suggest that German construction demand has begun to stabilize. While we would hesitate to predict a return to recovery as yet in Germany, nonetheless a stable market backdrop suggests that product pricing will likely remain resilient. In addition, and somewhat surprisingly we would concede, [...] there may well even be some initial signs of a modest recovery in residential orders Merrill Lynch, March 23, 2006 Germany completely missed the housing boom that propelled growth in other European economies through boosting consumer spending and construction investment. Beyond the near-term cyclical recovery in construction activity and real estate markets, we expect homeownership rates to start rising over the longer-term. Morgan Stanley, March 17, 2006 In summary, whilst we believe that the external environment for German growth will turn less favorable in the period ahead, a broadening of domestic growth forces will likely help sustain the business cycle. Our upgraded growth forecast for this year reflects this belief. The remaining question is to what extent policy makers will interfere with the business cycle. UBS, February 3,

18 Thank you for your interest in Wienerberger! Hans Tschuden, CFO Wolfgang Reithofer, CEO Johann Windisch, COO Heimo Scheuch, COO Wienerberger Corporate Communications Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11 T , F [email protected]