Wienerberger AG: Wienerberger with strong growth in the first half of 2018

Strong operational performance and boost in profitability

Vienna (pta007/16.08.2018/07:30 UTC+2) Revenues up by 5% to Eur 1,606.9 million
- Adjusted EBITDA up by 18% to Eur 214.2 million
- Net profit increased by 28% to Eur 53.2 million

Strategy & Outlook for 2018:
- Target of LFL EBITDA between Eur 450 and 470 million confirmed
- Eur 200 million earmarked for growth investments in 2018
- Total value of Eur 150 million to be generated through disposals of operational and non- operational assets until 2020
- Operational Excellence target significantly increased from Eur 45 million to Eur 120 million until 2020

Wienerberger AG delivered a very strong operational performance in the first half of 2018.

Heimo Scheuch, CEO of Wienerberger AG: "The performance of the Wienerberger Group during the first six months of 2018 was extremely satisfactory. We are clearly gaining momentum as we pursue our growth ambitions. We achieved profitability gains and recorded notable organic earnings growth in all Divisions. This confirms the success of our strategy: We will therefore continue to invest in growth projects, pursue the optimization of our portfolio and implement efficiency-enhancing measures. In this area, we intend to realize EBITDA improvements of around Eur 120 million by 2020, relative to 2017. This means that we plan to intensify all our optimization measures and with Eur 120 million, we are aiming significantly beyond our previously outlined target of Eur 45 million."

The dynamics of Wienerberger's excellent first quarter performance continued throughout the second quarter of 2018. From April to June, the Group recorded a 7% increase in revenues over the prior period's level to Eur 931.5 million and a 7% increase in EBITDA to Eur 154.8 million. As a result, Wienerberger's revenues at Group level grew by 5% to Eur 1,606.9 million in the first half of the year, despite unfavorable foreign exchange effects. Organic EBITDA (excluding one-off costs and income) grew by 18% to Eur 214.2 million. Irrespective of the costs of structural adjustments, the Group's net profit improved by 28% to Eur 53.2 million, up from Eur 41.7 million in the first half of 2017.

Business performance at Division level

European brick business: Significant earnings growth in Eastern Europe
In the first half of the year, Wienerberger's European brick business delivered improved revenues and earnings. The company's strong position in the Eastern European growth markets was reflected in notable double-digit revenue and earnings growth in the region. Business in Western Europe remained stable at the previous year's level. The consistent implementation of measures aimed at improving profitability led to a highly satisfactory rise in organic EBITDA. In total, the Division's revenues came to Eur 918.7 million in the first half of 2018, up by 6% from the first half of 2017. At Eur 158.7 million, EBITDA was 7% higher than in the comparable period of the previous year.

Pipes & Pavers Europe Division: Measures to improve earnings are taking effect
The Pipes & Pavers Europe Division succeeded in increasing its revenues by 7% to Eur 534.1 million in the first half of the year. Non-recurrent restructuring costs caused a drop in EBITDA from Eur 37.8 million to Eur 28.4 million. However, the consistent reorientation of operations in France have already led to improved earnings in the Western European plastic pipe business. All other improvement measures taken in 2017 and the first quarter of 2018 are producing results, e.g. in the ceramic pipe business. Relative to the comparable period of the previous year, revenues of the Division grew by 9% to Eur 315.0 million in the first quarter of 2018 and EBITDA rose significantly by 20% to Eur 37.4 million.

North America Division: Higher earnings and improved margins in all segments
Business in North America was marked by a steep increase in earnings in both bricks and pipes. This successful performance is due to the consistent reorientation of the Division over recent years. Despite a currency-related reduction in revenues of 3% to Eur 149.3 million, EBITDA grew by 79% to Eur 23.6 million.

Strategic measures and outlook for 2018
Heimo Scheuch: "The strategic optimization of our portfolio is making good progress. Until 2020, we plan to generate a total value of up to Eur 150 million through the disposal of assets, including operational as well as non-operational assets. At the same time, in pursuit of our growth strategy, we recently took over a brick producer in the Netherlands, a pipe specialist in Norway and a paver plant in Romania. With a view to further attractive possibilities, we have earmarked approximately Eur 200 million for growth investments over the course of 2018."

For 2018 as a whole, Wienerberger expects to see substantial revenue and earnings growth in the Clay Building Materials Europe Division. For the Pipes & Pavers Europe Division, the positive market trend is projected to continue and further earnings growth is expected. In the USA, the economic environment is anticipated to remain favorable and should enable the North America Division to generate significant growth in earnings.

Overall and from today's perspective, Wienerberger confirms its target of increasing its adjusted EBITDA at Group level to the projected range of Eur 450 million to Eur 470 million for the full year.

For the complete report on the first half of 2018, the video message by Heimo Scheuch (CEO of Wienerberger AG) on the mid-year results, as well as the webcast of the press conference at 9:30 am, please visit wienerberger.com/en.

Earnings Data		1-6/2017	1-6/2018	Chg. in %	Year-end 2017
Revenues	in MEUR	1,528.7	1,606.9	+5	3,119.7
EBITDA LFL 1)	in MEUR	182.1	214.2	+18	-
EBITDA	in MEUR	190.1	198.9	+5	415.0
Operating EBIT	in MEUR	96.3	104.2	+8	194.2
Profit before tax	in MEUR	72.1	86.6	+20	144.9
Net result	in MEUR	41.7	53.2	+28	123.2
Earnings per share	in EUR	0.36	0.46	+28	1.05
Free cash flow 2)	in MEUR	-137.7	-47.4	+66	152.5
Normal capex	in MEUR	57.9	60.7	+5	147.5
Growth capex	in MEUR	0.4	60.9	>100	58.8
Ø Employees	in FTE	16,156	16,652	+3	16,297

Balance Sheet Data		31/12/2017	30/6/2018	Chg. in %
Equity 3)	in MEUR	1,911.2	1,855.9	-3
Net debt	in MEUR	566.4	778.7	+37
Capital employed	in MEUR	2,459.2	2,612.1	+6
Total assets	in MEUR	3,659.9	3,951.0	+8
Gearing	in %	29.6	42.0	-

Divisions 1-6/2018 in MEUR and % 4)	Clay Building Materials Europe		Pipes & Pavers Europe		North America		Holding & Others		Reconciliation
External revenues	918.7	(+6%)	534.1	(+7%)	149.3	(-3%)	4.0	(-13%)
Inter-company revenues	0.9	(+11%)	0.1	(-25%)	0.0	(-98%)	8.1	(+17%)	-8.4
Revenues	919.7	(+6%)	534.2	(+7%)	149.3	(-4%)	12.1	(+5%)	-8.4
EBITDA	158.7	(+7%)	28.4	(-25%)	23.6	(+79%)	-11.8	(-31%)
Operating EBIT	103.7	(+14%)	2.3	(-85%)	11.4	(>100%)	-13.1	(-30%)
Total investments	91.8	(>100%)	23.7	(+43%)	4.7	(+4%)	1.5	(+12%)
Capital employed	1,609.1	(-1%)	606.3	(-6%)	387.8	(+17%)	8.9	(+67%)
Ø Employees (in FTE)	10,817	(+4%)	4,230	(+1%)	1,383	(+6%)	222	(+7%)

1) Adjusted for effects from consolidation, FX, sale of non-operating assets and operating assets as well as structural adjustments // 2) Cash flow from operating activities less cash flow from investing activities plus growth capex excluding changes in non-controlling interests // 3) Equity including non-controlling interests and hybrid capital // 4) Changes in % to the comparable prior year period are shown in brackets

Explanatory notes: Operating EBIT are adjusted for impairment charges to goodwill and assets as well as the reversal of impairment charges to assets. // Rounding differences may arise from the automatic processing of data.

Wienerberger Group
Wienerberger is the world's largest producer of bricks (Porotherm, Terca) and the market leader in clay roof tiles (Koramic, Tondach) in Europe as well as concrete pavers (Semmelrock) in Central and Eastern Europe. In pipe systems (Steinzeug-Keramo ceramic pipes and Pipelife plastic pipes), the company is one of the leading suppliers in Europe. With its total of 193 production sites, the Wienerberger Group generated revenues of Eur 3,120 million and EBITDA of Eur 415 million in 2017.

For further information please contact
Karin Steinbichler, Head of Corporate Communications Wienerberger AG
t +43 1 601 92 - 10149 | communication@wienerberger.com

Klaus Ofner, Head of Investor Relations Wienerberger AG
t +43 1 601 92 - 10221 | investor@wienerberger.com

Wienerberger AG is a pure free float company, whereby the majority of shares are held by Austrian and international institutional investors. Additional information on the shareholder structure is provided under https://wienerberger.com/en/investors/share.

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