Wienerberger at a Glance
The Year 2014 in Review

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Significant improvement of brick business results and stable development of European pipe business

In 2014, the development of residential construction in Europe was stable to slightly positive, but characterized by major regional and seasonal differences. Despite a significant slowdown of activities in some European core markets, Wienerberger reported substantial increases in revenues and results thanks to volume growth in all product groups and the improvement of average prices. In the European pipe business, better results at Steinzeug-Keramo and Semmelrock compensated for a slight decline at Pipelife, the latter largely due to fewer orders received for international project business, compared with the record year of 2013. In North America, lower prices in the brick business on an annual average as well as negative changes in the product mix in the plastic pipe business were reflected in a slight decrease in results.

Record revenues and a strong operating performance in 2014

In this market environment, Wienerberger generated record revenues of € 2,834.5 million and an operating EBITDA of € 317.2 million. Besides substantial organic growth, the Tondach Gleinstätten Group, which has been fully consolidated since 1 July 2014, and the completion of the cost-cutting program were the main factors contributing to the improved results. The value-creating takeover of Tondach Gleinstätten represents an important growth step for Wienerberger in the clay roof tile segment, which will allow the company to benefit from the above-average growth potential in Eastern Europe. Non-cash impairment charges in the amount of € 207.6 million prevented the Group from returning to the profit zone. The after-tax loss for the year in the amount of € 170.0 million was booked against a steep increase of 41% in the free cash flow to € 130.6 million. This resulted in an improvement of the net debt to EBITDA ratio to 1.9 years, which we regard as yet another confirmation of the strength of our business model. In 2015, the Managing Board therefore proposed to the annual general meeting that a dividend of € 0.15 per share is paid out, an increase of 25% compared with the previous year. The company’s equity totaled € 2,046.8 million in 2014; its net debt amounted to € 621.5 million.

Headcount increase mainly due to takeover of Tondach Gleinstätten

The average number of employees of the Wienerberger Group in 2014 amounted to 14,836, up by 8% from 2013. The increase was mainly due to the takeover of the remaining shares in the Tondach Gleinstätten Group in July 2014. Excluding the employees of Tondach Gleinstätten, Wienerberger’s average headcount in 2014 was 13,930, 1% higher than in the previous year. Due to the fact that the sustainability data gathering processes have not yet been fully implemented at Tondach Gleinstätten, the sustainability parameters of Tondach Gleinstätten have not been integrated into this Sustainability Report.

In 2014 a dividend of € 0.12 per share, corresponding to a total of € 13.8 million, was paid out from the Group’s 2013 net profit. In September 2014, Wienerberger successfully completed the exchange of € 272 million of the hybrid bond 2007 into a new hybrid bond 2014. The hybrid coupon paid out during the year includes not only the annual coupon of € 32.5 million, but also the prepaid coupon of the hybrid bonds exchanged in the amount of € 11.6 million. Payments to public bodies, comprising taxes on income and other taxes (excluding deferred taxes), rose to € 40.5 million due to the improvement in earnings and the resulting increase of the tax burden in 2014.

Financial flows to stakeholders
in € million 2012 2013 2014 1 Change in %
Corporate revenues 2 2,407.3 2,706.4 2,871.5 + 6
Operating expenses 3 – 1,518.7 – 1,779.6 – 1,852.0 + 4
Wages, salaries and benefits 4 – 592.5 – 637.4 – 679.1 + 7
Payments to providers of equity 5 – 46.3 – 46.3 – 57.9 + 25
Payments to providers of borrowed capital – 52.1 – 53.5 – 60.1 + 12
Payments to public bodies 6 – 33.7 – 38.7 – 40.5 + 5

1 Tondach Gleinstätten included as of July 2014.
2 Revenues and other operating income
3 Production costs, cost of sales, administrative costs and other operating expenses; excluding wages, salaries, benefits, depreciation
and taxes other than taxes on income
4 Excluding temporary workers and company cars; including employee-related restructuring costs
5 Hybrid coupon and dividend recognized in the year of payment.
6 Excluding deferred taxes

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