Wienerberger AG: Wienerberger continues on its dynamic growth course

Continued strong operational performance in all segments

Vienna (pta014/08.11.2018/07:30 UTC+1) Overview Q1-3/2018
- Strategic measures to boost profitability are bearing fruit
- Revenues up by 6% to Eur 2.5 billion
- 16% rise in adjusted EBITDA to Eur 356 million
- Significant increase in net profit by 33% to Eur 126 million

Outlook and Strategy
- Earnings forecast for 2018 confirmed: adjusted EBITDA of Eur 460-470 million
- Earnings growth of Eur 120 million to be generated by 2020 through enhanced efficiency
- EBITDA target for 2020 approx. Eur 680 million

During the first nine months of 2018, the Wienerberger Group delivered a strong operational performance. Heimo Scheuch, Chairman of the Managing Board, notes:

"In the third quarter of 2018, we were again able to build seamlessly on the excellent performance of our Group in the previous quarters. Thanks to the consistent implementation of our corporate strategy, we generated highly satisfactory revenue growth and reached a ten-year high in earnings. The main factors underlying the steep rise in the Group's operating result include improvements in our cost structure, expeditious measures taken to streamline our portfolio, and the successful implementation of strategic growth projects. Overall, our business benefited from a high level of demand in our core markets."

Wienerberger looks back on an excellent third quarter of 2018. Compared to the third quarter of 2017, revenues increased by 7% to Eur 888.1 million, while adjusted EBITDA surged by 13% to Eur 142.2 million (up from Eur 125.3 million in 2017).

During the first nine months of 2018, revenues at Group level increased by 6% from Eur 2,361.0 million in the prior year's period to Eur 2,495.2 million. Adjusted EBITDA (excluding one-off expenses and income) grew by 16% from Eur 307.4 million to Eur 356.4 million. The net profit soared by 33% to Eur 125.7 million (up from Eur 94.7 million).

Business Performance at Division Level

Clay Building Materials Europe Division: Steep increase in earnings on stable sales
The European brick business continued to perform very well in the third quarter of 2018, especially in the growth markets of Eastern Europe, where Wienerberger took full advantage of its excellent market position. Demand in Western Europe was stable. Following the successful implementation of measures to improve the cost structure, profitability increased substantially. For the first nine months of the year, the Division reported a 7% rise in revenues to Eur 1,433.8 million. Over the same period, adjusted EBITDA increased substantially by some 16% compared to the same period of the previous year to Eur 271.7 million.

Pipes & Pavers Europe Division: Measures to drive earnings are succeeding
Stable to slightly upward trends have recently been observed in the Division's markets in Western and Eastern Europe. Comprehensive restructuring measures implemented in France are taking effect and have led to a further improvement in earnings in the third quarter. Positive contributions were also made by the most recent acquisitions of innovative producers of prewired electro conduits and pre-insulated pipes. With the restructuring of the ceramic pipe business now completed, a significant improvement in EBITDA was already recorded in the third quarter. The Division's revenues grew by 6% to Eur 819.4 million, and adjusted EBITDA went up by 8% to Eur 72.7 million in the first nine months.

North America Division: Steep upward trend in earnings continues
The repositioning of the Division in recent years has proved a success. The Division performed extremely well in the first three quarters of 2018, with significant growth recorded in the North American pipe business and significant contributions to earning made by the Mississippi-based facing brick producer acquired by Wienerberger last year. Due to foreign-exchange fluctuations, the Division's revenues in the first nine months increased by only 0.4% from Eur 234.0 million to Eur 235.0 million, whereas its adjusted EBITDA rose steeply by 45% to Eur 30.7 million.

Strategic Measures and Outlook for 2018
Heimo Scheuch: "We are consistently and swiftly implementing our corporate strategy, which is based on three main pillars: operational excellence, organic growth, and growth projects and portfolio optimization. In terms of operational excellence, we intend to reach our targets faster than originally foreseen, and the results achieved so far are most encouraging. At the same time, we are determined to seize opportunities for growth through acquisitions in strategically interesting fields of business and markets even faster than in the past. In addition, we are fully on track to reach our targets for 2018."

Given its excellent performance during the past three quarters, Wienerberger again confirms its refined adjusted EBITDA target of Eur 460 million to Eur 470 million. In the medium term, Wienerberger now aims at an increased EBITDA target of approx. Eur 680 million for 2020 (post implementation of IFRS16).

For the complete report on the first nine months of 2018, please visit https://wienerberger.com/en

Earnings Data		1-9/2017	1-9/2018	Chg. in %	Year-end 2017
Revenues	in MEUR	2,361.0	2,495.2	+6	3,119.7
EBITDA LFL 1)	in MEUR	307.4	356.4	+16	-
EBITDA	in MEUR	315.0	343.2	+9	415.0
Operating EBIT	in MEUR	174.2	203.3	+17	194.2
Profit before tax	in MEUR	143.3	176.2	+23	144.9
Net result	in MEUR	94.7	125.7	+33	123.2
Earnings per share	in EUR	0.81	1.08	+33	1.05
Free cash flow 2)	in MEUR	-24.9	71.2	>100	152.5
Normal capex	in MEUR	90.8	95.6	+5	147.5
Growth capex	in MEUR	10.5	91.6	>100	58.8
Ø Employees	in FTE	16,241	16,623	+2	16,297

Balance Sheet Data		31/12/2017	30/9/2018	Chg. in %
Equity 3)	in MEUR	1,911.2	1,934.2	+1
Net debt	in MEUR	566.4	686.0	+21
Capital employed	in MEUR	2,459.2	2,584.6	+5
Total assets	in MEUR	3,659.9	3,814.1	+4
Gearing	in %	29.6	35.5	-

Stock Exchange Data		1-12/2017	1-9/2018	Chg. in %
Share price high	in EUR	22.45	24.06	+7
Share price low	in EUR	16.85	19.19	+14
Share price at end of period	in EUR	20.17	21.54	+7
Shares outstanding (weighted) 4)	in 1,000	116,956	116,350	-1
Market capitalization at end of period	in MEUR	2,370.5	2,531.5	+7

Divisions 1-9/2018
in MEUR and % 5)	Clay Building Materials Europe		Pipes & Pavers Europe		North America		Holding & Others		Reconciliation
External revenues	1,433.8	(+7%)	819.4	(+6%)	235.0	(0%)	6.1	(-5%)
Inter-company revenues	1.3	(+22%)	0.1	(-24%)	0.0	(-97%)	11.9	(+15%)	-12.3
Revenues	1,435.1	(+7%)	819.5	(+6%)	235.0	(0%)	17.9	(+7%)	-12.3
EBITDA	268.4	(+11%)	59.1	(-11%)	34.4	(+61%)	-18.7	(-26%)
Operating EBIT	186.0	(+19%)	22.1	(-30%)	15.9	(>100%)	-20.7	(-21%)
Total investments	120.9	(>100%)	46.4	(+32%)	8.4	(+3%)	11.5	(>100%)
Capital employed	1,586.6	(0%)	607.4	(-5%)	385.4	(+22%)	5.2	(>100%)
Ø Employees (in FTE)	10,808	(+3%)	4,205	(0%)	1,386	(+7%)	224	(+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) Adjusted for treasury stock // 5) 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 195 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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