Wienerberger AG: Good Performance of the Wienerberger Group in the first half of 2017

Wien (pta007/17.08.2017/07:30 UTC+2) Overview
- 4% revenue growth to Eur 1,528.7 million (H1 2016: Eur 1,468.9 million)
- EBITDA up by 7% to Eur 190.1 million (H1 2016: Eur 178.3 million)
- Net profit plus 54% to Eur 41.7 million (H1 2016: Eur 27.1 million)

Development of business of the Divisions
- Clay Building Materials Europe: Consistently strong across Western and Eastern Europe
- Pipes & Pavers Europe: Healthy demand in majority of core markets; weak order book in international project business and increasing raw material costs with negative impact on plastic pipe business
- North America: Satisfactory development of brick and plastic pipe activities

Outlook
- Target for 2017 maintained

Wienerberger AG showed a good performance in the first half of 2017. Commenting on the Group's development in the first six months, Heimo Scheuch, Chief Executive Officer of Wienerberger AG, says, "I am satisfied with the good results of the Wienerberger Group in the first half of the year. We saw highly diverging market developments in the pipe and bricks segments with the European brick and tiles business being our main growth driver. In the last months, we concentrated on the consistent implementation of our strategy, we were intensifying our customer relations, launching innovative products and solutions, and we were implementing our digital roadmap. Moreover, we are continuously exploring growth opportunities in our different business areas as well as optimizing existing structures and processes. Once again, we have shown our ability to grow even in a challenging environment."

After a very positive development of business during the first three months, the performance of markets in the second quarter of 2017 was in line with the Group's expectations. Overall, Wienerberger increased its revenues by 4% to Eur 1,528.7 million in the first half of the year. Negative foreign exchange effects resulting from the British pound and the Turkish lira diminished revenues by Eur 10.1 million. EBITDA came to Eur 190.1 million, up by 7% from the comparable period of the previous year. While foreign exchange effects depressed EBITDA by Eur -3.6 million, real estate sales generated a positive contribution to earnings in the amount of Eur 8.0 million. The increase in net profit from Eur 27.1 million in the first half of the previous year to Eur 41.7 million in the first half of 2017 reflects a highly satisfactory development.

Business review of the Divisions
Strong growth in European brick business
The Clay Building Materials Europe Division showed a consistently strong development of business in both Western and Eastern Europe. This was due to a slight increase in residential construction activity, which enabled Wienerberger to implement price increases and raise its sales volumes across all product groups. In Great Britain, growth in demand and the normalization of inventories along the supply chain led to higher facing brick and roof tile sales. Therefore, revenue and earnings growth was reported despite the weakness of the pound. The Belgian market suffered from a shortage of special insulating materials (PUR/PIR hard foam insulating panels for roof and wall applications), which delayed the completion of construction projects. However, Wienerberger was able to compensate the impact on sales through higher average prices. Brick business in the Netherlands benefited from a slight increase in demand. The French new residential construction market also showed an upward trend, whereas demand in the single- and two-family home segment in Germany declined. Business in Eastern Europe was strong in almost all countries of the region. The Austrian residential construction market was stable at a satisfactory level. Overall, this led to a 6% increase in revenues of the Clay Building Materials Europe Division to Eur 868.7 million and a significant rise in EBITDA by 19% to Eur 148.1 million.

Challenging environment in the Pipes & Pavers Europe Division
Revenues in the Pipes & Pavers Europe Division were almost stable at Eur 500.1 million, as compared to Eur 503.9 million in the previous year. This was due to healthy demand in most of the markets. In Eastern Europe, a revival of public-sector tendering activities for EU-funded infrastructure projects was observed. However, given the long lead time between tendering and project execution, the impact on business in the region is slow to materialize. The Division's EBITDA dropped by 28% to Eur 37.8 million in the reporting period, the main reason being its Western European plastic pipe business. On the one hand, earnings were depressed by the low order intake in international project business, and on the other hand, rising raw material prices could only be passed on to the market with a certain time lag. Earnings growth in the field of ceramic pipes and in the Eastern European plastic pipe and concrete paver business was not sufficient to compensate for the shortfall.

Revenue and earnings growth in North America
Overall, the North America Division looks back on a good first half of the year. Wienerberger benefited from rising numbers of new housing starts in the single- and two-family home segment and was able to increase its facing brick sales at slightly improved average prices. After a good start into the year, activities in Canada were slowed down by snowfall and wet weather conditions in the second quarter. The results of the plastic pipe business were satisfactory. Altogether, the North America Division generated revenues of Eur 154.6 million, up by 9% from the previous year, and a significant increase in EBITDA by 21% to Eur 13.2 million.

Outlook and Strategy
Target for the business year remains unchanged
The slight upward trend in residential construction activity in Europe is expected to continue, with positive market developments in Eastern Europe and diverging market trends in Western Europe. The Clay Building Materials Europe Division therefore anticipates a significant rise in revenues and earnings. For the Pipes & Pavers Europe Division, Wienerberger foresees an improvement of its Eastern European business in plastic pipes and concrete pavers, as demand increases on account of a revival of tendering activity for EU-funded infrastructure projects. While the Nordic core markets continue to perform well and price increases will offset the rise in raw material costs, international project business will remain weak. For the North America Division, as seen from today's perspective, Wienerberger reckons with organic revenues and earnings growth.

"We have set ourselves highly ambitious targets for the business year 2017. To reach these targets, we will intensify our efforts in all fields of business. We intend to seize development opportunities, further optimize our business, strengthen our position as the innovation leader of our industry, and focus on the customer as the center of everything we do. Thus, I am confident that we will succeed in increasing our organic Group EBITDA to Eur 415 million in 2017", concludes Heimo Scheuch, confirming the Group's target for the year.

For the complete report on the first half of 2017, the video presentation by Heimo Scheuch, CEO of Wienerberger AG, and the up-to-date results, as well as the web cast of the press conference on the presentation of the interim results at 9:00 a.m., please refer to www.wienerberger.com .

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 198 production sites, the Wienerberger Group generated revenues of Eur 2,974 million and EBITDA of Eur 404 million in 2016.

For further information please contact
Karin Steinbichler, Head of Corporate Communications Wienerberger
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 http://www.wienerberger.com/investor-relations/the-wienerberger-share/the-wienerberger-share/shareholder-structure.

Earnings Data		1-6/2016	1-6/2017	Chg. in %	Year-end 2016
Revenues	in MEUR	1,468.9	1,528.7	+4	2,973.8
EBITDA	in MEUR	178.3	190.1	+7	404.3
Operating EBIT	in MEUR	79.0	96.3	+22	197.7
Profit before tax	in MEUR	64.6	72.1	+12	158.5
Net result	in MEUR	27.1	41.7	+54	82.0
Earnings per share	in EUR	0.23	0.36	+54	0.70
Free cash flow 1)	in MEUR	-90.9	-137.7	-51	246.5
Normal capex	in MEUR	56.1	57.9	+3	137.3
Growth capex	in MEUR	23.6	0.4	-98	43.8
Ø Employees	in FTE	15,914	16,156	+2	15,990

Balance Sheet Data			31.12.2016	30.06.2017	Chg. in %
Equity 2)		in MEUR	1,849.0	1,832.4	-1
Net debt		in MEUR	631.6	789.7	+25
Capital employed		in MEUR	2,460.0	2,606.9	+6
Total assets		in MEUR	3,637.2	3,717.4	+2
Gearing		in %	34.2	43.1	-

1) Cash flow from operating activities less cash flow from investing activities plus growth capex // 2) Equity including non-controlling interests and hybrid capital

Explanatory notes to the report: 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.

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