Wienerberger at a Glance
Strategy and Business Model

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Sustainable creation of added value is our top corporate goal

The foremost goal of our business activities is to achieve a sustainable increase in enterprise value in accordance with ecological, social and economic principles, and thereby to create added value for all our stakeholders.

Extensive structural adjustments and repositioning completed

Wienerberger has created a strong and healthy foundation for organic growth through extensive restructuring measures and targeted growth steps. In order to bring the corporate structure into line with market conditions, we cut our fixed costs by approx. € 250 million, significantly reduced our working capital and launched numerous efficiency improvement programs. Moreover, new fields of business have been opened up through value-creating acquisitions in the renovation and infrastructure markets, which are less sensitive to cyclical developments. Thus, our dependence on the highly cyclical sector of new residential construction has been significantly reduced, and the earnings and cash-flow profile of the Group have been strengthend. Today, Wienerberger has a network of modern and efficient production sites, a strong capital base, lean cost structures, durable and innovative products, and motivated, well trained employees.

Commitment to sustainability strengthens the basis of the company

Wienerberger’s sustainability strategy supports the value creation of the company in a variety of ways: Numerous cost-cutting measures in the use of raw materials and energy result in higher efficiency. Health and safety initiatives and an emphasis on equal opportunities for all our staff strengthen productivity, commitment and employer branding. Sustainability is a source of innovation for new and optimized products. Medium-term supply risks are reduced through sustainable supply chain management.

Wienerberger Group: EBITDA potential of € 600 million

Based on these success factors, we see an EBITDA potential of over € 600 million, assuming that our markets will return to normal at a sustainable level in the medium to long term. The high potential for growth based on our corporate structure is complemented by the Group’s internal financing strength derived from high free cash flows. These are to be used, above all, to optimize our financing structure, to share our corporate success with our owners, and to implement value-creating growth investments.

Clear focus on organic growth

Wienerberger is a market-oriented company with a clear focus on growth. Our customers are the focal point of our actions – we want to create added value by offering them innovative, high-quality and user-oriented system solutions. Comprehensive advisory and support services, starting with the project planning phase, are an important part of our intensified sales activities. In this way, we develop long-standing customer relationships and take advantage of our profound understanding of customer needs in the development of new products and services. Based on our close customer contacts and our innovative strength, we aim to maintain or expand our leading positions in all the markets we operate in, and to grow faster than the market.

Wienerberger Markets in Europe and India

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Wienerberger Markets in North America

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Broadening the strategic basis of our core business

We pursue the strategic goal of reducing our dependence on new residential construction and broadening the range of our activities in the fields of renovation and infrastructure through the implementation of value-creating growth investments. These include acquisitions, capacity extensions and the exploration of new product segments or regional markets. Strategic resource allocation is based on clearly defined decision-making processes and subject to strictly observed yield targets, the objective being to ensure that growth steps directly contribute to the achievement of the Group-wide CFROI target of 11.5%. Given that we already have a modern and comprehensive network of production sites, sufficient capacity reserves and strong market positions in the ceramics business, acquisitions in the plastic pipe business are of particular interest on account of this segment’s sustainable growth potential and the lower capital intensity. The acquisitions of Pipelife (plastic pipes), Tondach Gleinstätten (clay roof tiles, which are also strongly used in renovation) and Steinzeug-Keramo (ceramic pipes) testify to the consistent implementation of our strategic goals. Through these growth steps, we have strengthened our position as an international provider of building material and infrastructure solutions and reduced our dependence on the cyclically sensitive sector of new residential construction from 70% to about 60% of our revenues. In 2014, the three new business units generated a CFROI of well above 11.5%.

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