Wienerberger AG: Wienerberger closes takeover of Pipelife

Vienna (pta006/25.05.2012/08:55 UTC+2) Antitrust authorities approve acquisition of the remaining 50% of Pipelife
- Direct value creation for shareholders: for a purchase price of 162 million Euro, Wienerberger will increase revenues by approx. 800 million Euro and EBITDA by approx. 70 million Euro per year
- Takeover represents milestone in the strategy to expand the core business
- Financial discipline and strong balance sheet structure remain top priority
- Pipelife will be fully consolidated as of June 1, 2012 and included in the new operating segment "Pipe and Paver Systems"

Wienerberger AG, the world's largest producer of bricks, number one on the clay roof tile market in Europe and with leading positions in pipe and paver systems in (East-)Europe, closed the takeover of Pipelife, one of the leading producers of plastic pipe systems in Europe, yesterday. Wienerberger has received unqualified approval from the antitrust authorities in the EU, Turkey and Russia for the full takeover of Pipelife. Pipelife will be fully consolidated as of June 1 (previously at-equity consolidation) and together with Steinzeug-Keramo, the Group's specialist for ceramic pipes, and Semmelrock, the leading supplier of concrete pavers in Central-East Europe, will be reported under the newly created operating segment "Pipe and Paver Systems".

Pipelife is one of the leading producers of plastic pipe systems in Europe
Pipelife is one of the leading European producers of plastic pipes, pipe systems and high-quality plastic dies. The company operates 27 plants in Europe and the USA with 2,650 employees in 27 countries. The most important markets are Northern Europe, Benelux, France and Austria, which generate more than half of total revenues. The Pipelife product portfolio covers system solutions for building installations, drinking water supply, irrigation, sewage and rainwater management systems, energy supply and drainage as well as special products for industrial applications. Similar to Wienerberger, Pipelife also places a strong focus on the improvement and innovation of its product portfolio. In 2011, 20% of the company's sales volumes represented products that were developed and launched during the past five years.

Pipelife generated revenues of 804.5 million Euro and operating EBITDA of 68.9 million Euro in 2011. After accounting for depreciation and amortization totaling 26.7 million Euro as well as non-recurring expenses and impairments EBIT from continued operations amounted to 39.3 million Euro. Deducting the financial result in the amount of -10.3 million Euro Pipelife earned 29.0 million Euro in pre-tax earnings. Recording an effective tax rate of 21% Pipelife generated after-tax earnings of 22.4 million Euro. With regards to the balance sheet non-current assets of 223.2 million Euro and current assets of 253.2 million Euro combined to total assets of 476.4 million Euro. Net debt amounted to 70.1 million Euro at year-end.

Integration will secure sustainable organic growth potential and reduce the dependency on new residential construction
In addition to an increase of roughly one-third in Group revenues and more than 20% in EBITDA, the Pipelife acquisition marks a milestone in the planned expansion of Wienerberger's core business. This transaction will not only make Wienerberger one of the leading suppliers of plastic pipes in Europe, but can also reduce the dependency on cyclical new residential construction from 70% (based on revenues) to 60% and strengthen the Group's position in the renovation and infrastructure segments. The new pipe systems business will also create interesting opportunities for future growth. After the integration of Pipelife, plans call for a focus on the active development of business in the areas of building and electro installations and the generation of growth with the combined innovative power and strong market structures of Pipelife and Wienerberger. The necessary renovation of supply lines in Western Europe and the pent-up demand for these networks in Eastern Europe will form the key drivers for further growth in the Pipe Systems Segment over the medium- and long-term.

After settlement of the purchase price and the consolidation of Pipelife, debt repayment period should be less than 2.5 years at the end of 2012
The purchase price for this 50% stake totals 162 million Euro and will be paid from existing cash flow and available credit lines. Since Pipelife had very low net debt at the end of 2011, Wienerberger does not expect any significant deterioration in its balance sheet or financial indicators. Financial discipline and a strong balance sheet as well as strict cost management remain the focal points of the Group's financial policies, and the goal remains intact to hold the debt repayment period (net debt / operating EBITDA) below 2.5 years. Consequently, Wienerberger expects this ratio will be less than 2.5 years at the end of 2012 after the payment of the purchase price and the consolidation of Pipelife. This will allow the Group to easily meet the bank covenants and also provide sufficient latitude for the implementation of the Wienerberger strategy.

Wienerberger has leading positions in bricks, roof tiles, concrete blocks and pipe systems
Wienerberger is the world's largest producer of bricks (Porotherm, Poroton, Terca) as well as the market leader for clay roof tiles (Koramic, Tondach) in Europe and for concrete pavers (Semmelrock) in Central-East Europe. In pipe systems (Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), the company is one of the leading suppliers in Europe. With a network of 230 plants, Wienerberger generated revenues of 2,024 million Euro and operating EBITDA of 259 million Euro in 2011.

For additional information contact:
Barbara Braunöck, Head of Investor Relations
T +43 1 601 92 - 471 | communication@wienerberger.com

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Emitter:	Wienerberger AG Wienerbergstraße 11 1100 Wien Austria
Contact Person:	Barbara Braunöck
Phone:	+43 1 60192-471
E-Mail:	communication@wienerberger.com
Website:	www.wienerberger.com
ISIN(s):	AT0000831706 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)