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Wienerberger AG

Quarterly Report May 7, 2015

769_rns_2015-05-07_38fbcefe-b648-4fa6-bdf8-57b3495a9575.pdf

Quarterly Report

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A QUARTERLY SEQUAL

A WORTHWHILE LOOK AHEAD. REPORT ON THE FIRST QUARTER OF 2015

k WIENERBERGER SCRIPT QUARTERLY REPORTS © 2015 STARRING WALL, FACADE, ROOF, PIPES, PAVERS PRODUCED IN EUROPE, NORTH AMERICA, INDIA

Earnings Data 1-3/2014 1-3/2015 Chg. in % Year-end 2014
Revenues in € mill. 584.6 612.5 +5 2,834.5
Operating EBITDA in € mill. 28.1 34.0 +21 317.2
Operating EBIT in € mill. -20.5 -18.1 +11 100.2
Profit before tax in € mill. -38.7 -31.8 +18 -157.6
Profit after tax 1) in € mill. -39.2 -34.1 +13 -170.0
Earnings per share in € -0.41 -0.35 +15 -1.74
Free cash flow 2) in € mill. -160.4 -179.8 -12 130.6
Normal capex in € mill. 27.2 25.3 -7 121.8
Growth capex in € mill. 0.0 1.6 >100 41.3
Balance Sheet Data 31.12.2014 31.3.2015 Chg. in %
Equity 3) in € mill. 2,046.8 2,070.8 +1
Net debt in € mill. 621.5 841.1 +35
Capital employed in € mill. 2,652.2 2,898.9 +9
Balance sheet total in € mill. 3,913.4 4,006.3 +2
Gearing in % 30.4 40.6 -
Ø Employees 14,836 15,674 +6
Stock Exchange Data 1-12/2014 1-3/2015 Chg. in %
Share price high in € 13.98 14.97 +7
Share price low in € 9.01 11.45 +27
Share price at end of period in € 11.45 14.87 +30
Shares outstanding (weighted) 4) in 1,000 116,017 116,956 +1
Market capitalization at end of period in € mill. 1,345.1 1,747.6 +30
Divisions 1-3/2015
in € mill. and % 5)
Clay Building
Materials Europe
Pipes & Pavers
Europe
North
America
Holding
& Others
Reconciliation
Third party revenues 332.5 (+4%) 224.3 (+3%) 53.5 (+19%) 1.9 (+34%)
Inter-company revenues 0.4 (-13%) 0.3 (+30%) 2.3 (>100%) 2.9 (+24%) -5.6
Revenues 332.9 (+4%) 224.6 (+3%) 55.8 (+23%) 4.8 (+28%) -5.6
Operating EBITDA 21.9 (-5%) 14.5 (+25%) 1.1 (>100%) -3.5 (+31%)
Operating EBIT -11.8 (-53%) 3.0 (>100%) -5.0 (+28%) -4.4 (+26%)
Total investments 14.6 (-10%) 9.0 (+3%) 2.8 (+92%) 0.5 (-41%)
Capital employed 1,855.8 (+3%) 623.4 (-3%) 410.2 (-5%) 9.6 (-37%)
Ø Employees 10,138 (+24%) 4,055 (-1%) 1,273 (+3%) 208 (+4%)

1) Before non-controlling interests and accrued hybrid coupon

2) Cash flow from operating activities less cash flow from investing activities plus growth capex

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 to the report:

– Operating EBITDA and operating EBIT are adjusted for non-recurring income and expenses.

– Rounding differences may arise from the automatic processing of data.

Chief Executive's Review

Dear Shareholders,

I am pleased to report to you on the sound revenue and earnings growth recorded by the Wienerberger Group in the first quarter of 2015. From January to March, we generated revenues of € 613 million – which represents an increase of 5% over the previous year. Operating EBITDA also increased by a significant 21% to € 34 million. We are satisfied with the results for the first three months. Even without any tailwinds from the markets, we successfully improved earnings based on our internal strength. This strong operating performance is a result of our clear focus on high-quality products and system solutions, our innovative power and our service expertise in all areas of the Wienerberger Group. Our continuous optimization and efficiency improvement measures provide additional support.

The Clay Building Materials Europe Division recorded a good start in spite of a stronger winter than the previous year and very different regional developments. The initial consolidation of Tondach Gleinstätten had a positive effect on revenues in this division. However, earnings were affected by the expected seasonally negative earnings contribution from our East European clay roof tile business. Revenues rose by 4% in the first quarter, while operating EBITDA fell from € 23 million in 2014 to € 22 million for the reporting period. The Pipes & Pavers Europe Division recorded a year-on-year improvement in results for the first three months with growth of 3% in revenues and 25% in operating EBITDA. The North America Division increased revenues by 19% and operating EBITDA by more than € 2.6 million to € 1.1 million. The sound revenue and earnings growth in this division was supported by foreign exchange effects and cost savings.

Our estimates for the full year remain unchanged. We still see a stable to slightly positive market environment in Europe, which should lead to moderately higher volumes in the brick business. We also expect growth in the USA and, supported by the stronger US dollar, an improvement in results for the North America Division. Steinzeug-Keramo and Semmelrock should record an improvement in earnings for the year based on their internal strength. Stable development in the European core markets and good order levels for international projects should have a favorable influence on the plastic pipe business. However, the second quarter of 2015 could bring a shortage of plastic granulate on the raw materials market. We have already taken the necessary steps to prepare for this challenge and will handle the volatile costs through our price management. With proactive measures in procurement, production and sales, we intend to ensure availability of our products for our customers.

The strong results in the first quarter underscore our operating strengths. Even if we cannot expect much tailwind from the market, we remain on a growth course. I am therefore confident that we will meet our goals for 2015 and generate Group EBITDA of € 350 million.

Heimo Scheuch, Chief Executive Officer of Wienerberger AG

Interim Management Report

FINANCIAL REVIEW

Earnings

Revenues recorded by the Wienerberger Group rose by 5% year-on-year to € 612.5 million for the first three months of 2015 (2014: € 584.6 million). This growth was supported by different factors: revenues were increased by the initial consolidation of the Tondach Group, while Wienerberger recorded volume declines on a number of European core markets due to weather conditions that were less favorable than in the comparable prior year period. Foreign exchange effects increased revenues by € 10.7 million, with the largest positive effects coming from the US dollar and the British pound.

In the Clay Building Materials Europe Division, the first quarter was characterized by different regional developments. Third party revenues rose by 4% to € 332.5 million and also included the effects of the Tondach Gleinstätten consolidation. However, operating EBITDA declined 5% to € 21.9 million due to weather conditions that differed from the very mild first quarter of 2014.

The Pipes & Pavers Europe Division reported slightly increasing third party revenues of € 224.3 million for the first three months of 2015 (2014: € 218.8 million). Higher volumes in the international project business for industrial and special pipes led to an increase in earnings for the plastic pipe business. Steinzeug-Keramo, our ceramic wastewater systems producer, recorded a decline in revenues and earnings due to lower volumes in Western Europe. The concrete paver business was slightly weaker year-on-year because of the adverse weather conditions in the first quarter. Operating EBITDA of the Pipes & Pavers Europe Division rose by 25% year-on-year to € 14.5 million (2014: € 11.6 million).

North America: year-onyear increase in EBITDA

Pipes & Pavers Europe: 25% increase in operating EBITDA

The North America Division recorded stable brick volumes in spite of the severe weather. Higher volumes in the international project business for plastic pipes as well as positive foreign exchange effects supported a 19% increase in revenues to € 53.5 million. Higher capacity utilization in the plants and cost savings measures led to positive operating EBITDA of € 1.1 million.

The Wienerberger Group recorded a 21% increase in operating EBITDA to € 34.0 million for the first three months of 2015 (2014: € 28.1 million). This development was driven, above all, by the positive development of key markets in Great Britain and the Netherlands and by significant growth in Pipelife's international project business.

Operating EBIT totaled € -18.1 million for the reporting period (2014: € -20.5 million). The sale of non-operating assets generated a profit of € 1.6 million in the first quarter.

Financial results of € -13.7 million (2014: € -18.2 million) consisted primarily of € -12.2 million (2014: € -15.8 million) in interest expense and € -1.7 million of income from investments in associates and joint ventures. This latter amount is higher than the comparable prior year value of € -4.7 million due to the initial consolidation of the Tondach Group during the second half of 2014, which was previously accounted for at equity.

Revenue growth driven by consolidation of Tondach Gleinstätten

Profit before tax improved to € -31.8 million in the first three months of 2015 (2014: € -38.7 million). After the deduction of taxes, Wienerberger recorded a loss of € -34.1 million (2014: loss of € -39.2 million). Earnings per share equaled € -0.35, compared with € -0.41 in the prior year period. The calculation of earnings per share includes an adjustment for the accrued hybrid coupon.

Cash Flow

Gross cash flow was positive at € 32.7 million for the reporting period and improved by € 14.7 million primarily due to the higher contribution from operating earnings. Cash flow from operating activities amounted to € -149.5 million following the seasonal increase in working capital, above all due to a stronger year-on-year increase in inventories.

Expenditures for maintenance and technical upgrades for production processes as well as growth projects amounted to € 26.8 million for the first three months of 2015 (2014: € 27.2 million). Cash inflows from the sale of real estate and other non-current assets amounted to € 2.1 million (2014: € 4.0 million).

Cash flow from financing activities totaled € 66.7 million for the first three months and was related primarily to the use of a credit line. The € 20.9 million hybrid coupon was paid in February.

Asset and Financial Position

Group equity rose by € 24.0 million over year-end 2014 as of March 31, 2015, chiefly due to positive currency translation differences in total comprehensive income. Net debt increased by € 219.6 million to € 841.1 million for seasonal reasons.

Gross cash flow positive

Total comprehensive income after tax positive

OPERATING SEGMENTS

Clay Building Materials Europe

The Clay Building Materials Europe Division recorded a solid start during the first three months of 2015 in spite of very different regional trends and a winter that was more severe than the previous year. Average prices improved slightly across all product groups, while clay block volumes remained stable and roof tile volumes increased substantially due to the takeover of Tondach Gleinstätten. In contrast, facing brick volumes were slightly lower. Division revenues rose by 4% year-on-year to € 332.5 million and operating EBITDA fell from € 23.1 million to € 21.9 million. The earnings decline reflected the substantial weakness on a number of European core markets due to the milder weather in the first quarter of the previous year and the expected negative earnings contribution by Tondach Gleinstätten for the reporting period, which were only offset in part by income from the sale of real estate.

Clay Building Materials Europe 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 318.8 332.5 +4
Operating EBITDA in € mill. 23.1 21.9 -5
Operating EBIT in € mill. -7.7 -11.8 -53
Total investments in € mill. 16.2 14.6 -10
Capital employed in € mill. 1,798.4 1,855.8 +3
Ø Employees 8,182 10,138 +24

Our assumptions for regional market developments during the remainder of this year remain intact. Developments are positive on the markets in Great Britain, Belgium and Poland, but further declines in single- and two-family house construction are projected for France and Italy. In the Netherlands, the anticipated bottoming out was confirmed during the first three months. The German-speaking countries should see stable to slightly weaker market development. Our forecasts for Russia show a substantial market slowdown due to the negative effects of the economic sanctions and the sharp drop in the oil price. In total, we expect a moderate increase in volumes in a slightly growing market and a sound improvement in revenues and earnings during 2015. This positive development will be supported by a slight increase in average prices to cover cost inflation as well as the first half-year contribution from the initial consolidation of Tondach Gleinstätten and profitability improvement measures.

Clay Building Materials Western Europe

The Clay Building Materials Western Europe Segment reported a slight 2% year-on-year decline in revenues to € 251.9 million. The positive development on the British market continued during the first quarter, and moderate market growth in the Netherlands led to a solid increase in volumes for all product groups. In contrast, Italy and France recorded volume declines due to the ongoing market weakness. Given the extremely mild weather during the first quarter of the previous year, the delayed start of the construction season in 2015 resulted in lower volumes for Germany and Switzerland during the reporting period. However, operating EBITDA rose by 1% due to the steady implementation of measures to optimize cost structures and improve the efficiency of internal processes as well as price increases in excess of cost inflation.

Solid start in view of milder weather in first quarter of previous year

Sound revenue and earnings growth expected in 2015

Stable earnings development for Western Europe in line with expectations

Clay Building Materials Western Europe 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 258.0 251.9 -2
Operating EBITDA in € mill. 20.6 20.8 +1
Operating EBIT in € mill. -0.7 -0.2 +73
Total investments in € mill. 12.7 10.7 -16
Capital employed in € mill. 1,378.2 1,304.4 -5
Ø Employees 5,824 5,977 +3

For 2015, we expect stable to slightly positive development on the residential construction market in Western Europe. The growth trend and full capacity utilization should continue in Great Britain during the remainder of this year. In the Netherlands, we are benefiting from the market recovery and expect an increase in volumes and an improvement in earnings. Italy and France should see further declines in new single- and two-family house construction, while Germany and Switzerland should record stable to slightly weaker development from a good level. The measures to optimize cost and sales structures will therefore continue, above all in Germany. Our forecasts call for an increase in revenues and earnings for the Clay Building Materials Western Europe Segment in 2015 based on moderate volume growth and price increases to cover cost inflation.

Clay Building Materials Eastern Europe

Despite less favorable weather conditions, the reporting segment Eastern Europe recorded a moderate year-on-year increase in clay block volumes during the first quarter of 2015. This development and, above all, the contribution from the initial consolidation of Tondach Gleinstätten led to a substantial 32% increase in revenues to € 80.5 million. Operating EBITDA was negatively influenced, as expected, by strong seasonal factors that led to a negative earnings contribution from Tondach Gleinstätten and declined from € 2.5 million in the previous year to € 1.1 million in 2015.

Clay Building Materials Eastern Europe 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 60.8 80.5 +32
Operating EBITDA in € mill. 2.5 1.1 -55
Operating EBIT in € mill. -7.0 -11.6 -66
Total investments in € mill. 3.5 3.9 +12
Capital employed in € mill. 420.2 551.3 +31
Ø Employees 2,358 4,161 +76

For the full year, we still expect a sound increase in revenues and earnings in a slightly growing market. Poland is projected to record a moderate increase in single- and two-family house construction and a corresponding increase in volumes. The prices in this market should, however, remain at a constant level because of the increasing competition and price pressure. Continued moderate growth is forecasted for Romania, while Bulgaria and Hungary should see market recovery in 2015 after the challenging previous year. The markets in the Czech Republic and Slovakia are expected to stabilize, while new residential construction in Austria is projected to weaken slightly from a good level. We are expecting a substantial decline in revenues and earnings generated in Russia and by exports to Russia due to negative foreign exchange factors and the effects of the economic sanctions as well as the sharp drop in the oil price. In total, we expect a clear improvement in revenues and earnings for the Clay Building Materials Eastern Europe Segment in 2015. This development will be supported by moderate market growth and

Increase in revenues and earnings expected for full year

Sound increase in revenues during first quarter 2015 based on consolidation effects

Clear improvement in revenues and earnings expected for Clay Building Materials Eastern Europe in 2015 the initial consolidation of Tondach Gleinstätten as well as our internal efficiency improvement and cost optimization measures.

Pipes & Pavers Europe

The Pipes & Pavers Europe Division recorded a year-on-year increase of 3% in revenues and 25% in operating EBITDA for the first three months of 2015. Our ceramic wastewater systems and concrete pavers businesses in Central-East Europe reported solid development for the reporting period but, as expected, were unable to completely repeat the very strong prior year results due to the weather-related delay in the start of the construction season. In contrast, our plastic pipe business recorded a substantial increase in operating earnings. Pipelife benefited from solid organic earnings growth in the European core markets as well as an upturn in the international project business and lower raw material costs.

Pipes & Pavers Europe 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 218.8 224.3 +3
Operating EBITDA in € mill. 11.6 14.5 +25
Operating EBIT in € mill. 0.0 3.0 >100
Total investments in € mill. 8.7 9.0 +3
Capital employed in € mill. 644.6 623.4 -3
Ø Employees 4,098 4,055 -1

For the full year, we expect a slight improvement in earnings for the Pipes & Pavers Europe Moderate earnings growth expected for Pipes & Pavers Europe Division in 2015

Division. The earnings contribution from Pipelife's international project business will also be substantially higher year-on-year in the second quarter due to won tenders. The Nordic core markets should continue to generate volume growth, but the resulting increase in local currency earnings will be reduced by the devaluation of the Norwegian and Swedish krone. Measures to improve the cost structure will represent our focus for Western Europe, while we will benefit from slight market growth in Eastern Europe due to the continuation of EU subsidies. We do not see any positive effects on profitability from the development of raw material costs after the first quarter because a shortage of plastic granulate will lead to higher costs and limited availability. We have already taken the necessary proactive steps to counter the distortions on the raw materials markets in order to ensure availability of our products and to include the volatile development of input costs in our price management. Our ceramic pipe and concrete paver businesses should record higher earnings for the full year despite the later start of the construction season. Earnings at Steinzeug-Keramo will be favorably influenced, above all, by exports to the Middle East beginning in the second half-year, while the European home markets should generally remain stable. Our strategy to position Semmelrock as a premium supplier includes an increase in the share of revenues from premium products, while continued cost optimization should support a year-on-year improvement in earnings in a largely stable market environment.

25% increase in operating EBITDA for Pipes & Pavers Europe

Pipes & Pavers Western Europe

The Pipes & Pavers Western Europe Segment reported an increase of 5% in revenues to € 140.8 million and a substantial 27% improvement in operating EBITDA to € 13.5 million for the first three months of 2015. Pipelife, our specialist for plastic pipe systems, generated earnings growth due to an increase in sales volumes in the West and North European home markets, which was strengthened by a significant upturn in the international project business. In contrast, Steinzeug-Keramo was faced with a decline in revenues and earnings because growth in the East European and international exports markets was unable to fully offset the stronger volume declines in Western Europe.

Pipelife recorded slightly higher volumes in the West and North European core markets and increased operating earnings based on stable revenues. We also benefited from lower raw material costs and a sound increase in the earnings contribution from the international project business based on tenders won during the fourth quarter of 2014. Extensive measures to strengthen the market positions and profitability were introduced in France and the Netherlands, as previously announced. Pipelife generated a solid increase in operating EBITDA for the first three months. Steinzeug-Keramo, our specialist for ceramic wastewater systems, reported a decline in operating EBITDA for the first three months due to higher start-up costs after winter standstills and lower volumes on the European core markets. The volume decline resulted primarily from a decrease in tenders on the German market and the delayed start of the construction season. An increase in exports to the Middle East and to Eastern Europe, which continues to benefit from EU subsidies for public wastewater systems, was unable to fully offset this earnings decline.

Pipes & Pavers Western Europe 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 134.4 140.8 +5
Operating EBITDA in € mill. 10.6 13.5 +27
Operating EBIT in € mill. 4.3 7.2 +68
Total investments in € mill. 5.8 4.5 -22
Capital employed in € mill. 352.2 345.9 -2
Ø Employees 1,796 1,709 -5

Note: Export sales by the Steinzeug-Keramo Group to Poland were reclassified to the Pipes & Pavers Western Europe Segment (previously: Pipes & Pavers Eastern Europe); all indicators were adjusted accordingly.

In our plastic pipe business, we expect a stable market environment and continued momentum in the international project business during the remainder of this year. We have already taken proactive steps in procurement, production and sales to ensure availability of our products and incorporate the volatile input costs in our price management, despite the beginning raw material shortage in the second quarter. We expect a slight improvement in operating earnings for Pipelife this year based on the implementation of profitability improvement measures in France and the Netherlands and a solid earnings contribution from the Nordic markets in spite of the expected negative foreign exchange effects. Our ceramic pipe activities should see further growth in Eastern Europe and in exports to the Middle East as well as stable development on the West European markets. In total, we expect a slight increase in earnings for the Pipes & Pavers Western Europe Segment in 2015.

Strong 27% increase in operating EBITDA based on earnings improvement in West European plastic pipe business

Pipelife benefits from upturn in international project business

Moderate earnings growth expected for full year

Pipes & Pavers Eastern Europe

Pipes & Pavers Eastern Europe with operating EBITDA at prior year level despite slight revenue decline

Stable revenues and higher earnings for Pipelife

The Pipes & Pavers Eastern Europe Segment recorded a 1% decline in revenues to € 83.6 million for the first three months due to the later start of the construction season. Our East European plastic pipe business reported nearly stable revenues and an improvement in operating earnings. Semmelrock, our concrete pavers specialist, showed solid development, but was unable to duplicate the weather-related very good results from the first quarter of 2014. In total, operating EBITDA was stable at € 1.0 million compared to the prior year period.

Pipelife generated earnings growth in the first three months of 2015 based on nearly constant revenues. We utilized the slight market growth in Poland to increase revenues and earnings, while Austria, the largest single market in the region, recorded nearly stable earnings in a stagnating market. Earnings improvements in Turkey, Hungary and the Czech Republic offset the substantial decline in Russia. Semmelrock recorded a slight year-on-year decline in volumes and earnings, as expected, due to the milder weather in the first quarter of the previous year. In this generally stable market environment, we are continuing our efforts to optimize costs, to increase the share of revenues from premium products and to improve our revenue structure.

Pipes & Pavers Eastern Europe 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 84.4 83.6 -1
Operating EBITDA in € mill. 1.0 1.0 0
Operating EBIT in € mill. -4.3 -4.2 +2
Total investments in € mill. 2.9 4.4 +51
Capital employed in € mill. 292.5 277.5 -5
Ø Employees 2,302 2,346 +2

Note: Export sales by the Steinzeug-Keramo Group to Poland were reclassified to the Pipes & Pavers Western Europe Segment (previously: Pipes & Pavers Eastern Europe); all indicators were adjusted accordingly.

Stable to slightly positive earnings development expected

Based on the first three months, we expect a stable market environment in Eastern Europe and flat to slightly positive earnings development for the Pipes & Pavers Eastern Europe Segment in 2015. Our goal to improve earnings in the concrete paver business will be met primarily through an increase in earnings in Austria and Poland. We will benefit from modest market growth in Poland, while internal structural adjustments will have a positive effect on profitability in the stable Austrian market. We also intend to increase the share of revenues from premium products and strengthen our revenue structure in 2015. Our plastic pipe business is expected to record stable earnings development, and we have also implemented measures in this region to successfully handle the high volatility on the raw materials market. Poland should record higher revenues and earnings based on moderate market growth. In contrast, we expect an earnings decline in Austria. Earnings in Russia will not reach the previous year due to the decline in infrastructure spending and the devaluation of the ruble. For the other markets in this segment, we expect stable to slightly positive earnings development.

North America

The continuing recovery on the residential construction market was again slowed by the weather, similar to conditions during the first quarter of the previous year. In this environment, our North American brick business recorded stable volumes for the reporting period. The plastic pipe business benefited from higher activity in the international project business with fiberreinforced pipes during the first three months. These developments, together with positive foreign exchange effects, led to a 19% year-on-year increase in revenues to € 53.5 million. Operating EBITDA improved from € -1.6 million to € 1.1 million, primarily due to the implementation of cost savings measures in the North American brick business.

North America 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 45.1 53.5 +19
Operating EBITDA in € mill. -1.6 1.1 >100
Operating EBIT in € mill. -6.9 -5.0 +28
Total investments in € mill. 1.5 2.8 +92
Capital employed in € mill. 430.5 410.2 -5
Ø Employees 1,231 1,273 +3

For the full year, we expect continued recovery in US new residential construction and an increase in the demand for bricks based on a still challenging price environment in individual regional markets. Volumes should remain stable in Canada and increase in the plastic pipe business due to the newly constructed production line. In total, we expect a sound improvement in revenues and earnings for our brick and plastic pipe businesses in North America during 2015.

Holding & Others

The Holding & Others Division includes the costs for the corporate headquarters and our brick activities in India. Higher clay block volumes and positive foreign exchange effects supported a 34% increase in revenues to € 1.9 million for the first quarter. Operating EBITDA improved from € -5.0 million to € -3.5 million. This development resulted chiefly from a higher earnings contribution from India and the sale of real estate as part of our program to divest nonoperating assets. For 2015, we expect an improvement in revenues and earnings in India.

Holding & Others 1-3/2014 1-3/2015 Chg. in %
Third party revenues in € mill. 1.4 1.9 +34
Operating EBITDA in € mill. -5.0 -3.5 +31
Operating EBIT in € mill. -5.9 -4.4 +26
Total investments in € mill. 0.8 0.5 -41
Capital employed in € mill. 15.2 9.6 -37
Ø Employees 200 208 +4

Improvement in revenues and earnings despite severe weather

growth expected for 2015

Revenue and earnings

Higher volumes in India and real estate sales lead to increase in revenues and earnings

Interim Financial Statements (IFRS) Wienerberger Group

Consolidated Income Statement

in TEUR 1-3/2015 1-3/2014
Revenues 612,547 584,618
Cost of goods sold -448,411 -430,753
Gross profit 164,136 153,865
Selling expenses -130,505 -123,101
Administrative expenses -45,241 -42,026
Other operating income 4,931 6,028
Other operating expenses -11,442 -15,229
Operating profit/loss (EBIT) -18,121 -20,463
Income from investments in associates and joint ventures -1,653 -4,733
Interest and similar income 1,815 1,984
Interest and similar expenses -12,224 -15,837
Other financial results -1,588 398
Financial results -13,650 -18,188
Profit/loss before tax -31,771 -38,651
Income taxes -2,291 -581
Profit/loss after tax -34,062 -39,232
Thereof attributable to non-controlling interests -1,396 -531
Thereof attributable to hybrid capital holders 8,014 8,014
Thereof attributable to equity holders of the parent company -40,680 -46,715
Earnings per share (in EUR) -0.35 -0.41
Diluted earnings per share (in EUR) -0.35 -0.41

Consolidated Statement of Comprehensive Income

in TEUR 1-3/2015 1-3/2014
Profit/loss after tax -34,062 -39,232
Foreign exchange adjustments 100,848 -9,756
Foreign exchange adjustments to investments in associates and joint ventures 8 -89
Changes in the fair value of available-for-sale financial instruments -1,065 251
Changes in hedging reserves -20,817 142
Other comprehensive income 1) 78,974 -9,452
Total comprehensive income after tax 44,912 -48,684
Thereof comprehensive income attributable to non-controlling interests -1,270 -531
Thereof attributable to hybrid capital holders 8,014 8,014
Thereof comprehensive income attributable to equity holders of the parent company 38,168 -56,167

1) The components of other comprehensive income are reported net of tax and will be recycled in future periods.

Consolidated Balance Sheet

in TEUR 31.3.2015 31.12.2014
Assets
Intangible assets and goodwill 771,255 753,184
Property, plant and equipment 1,693,795 1,646,275
Investment property 77,408 76,683
Investments in associates and joint ventures 5,885 8,925
Other financial assets and non-current receivables 10,487 12,257
Deferred tax assets 55,804 60,163
Non-current assets 2,614,634 2,557,487
Inventories 764,239 701,398
Trade receivables 306,341 221,070
Receivables for current taxes 16,505 14,331
Other current receivables 83,074 81,959
Securities and other financial assets 57,314 61,910
Cash and cash equivalents 164,208 275,195
Current assets 1,391,681 1,355,863
Total Assets 4,006,315 3,913,350
Equity and Liabilities
Issued capital 117,527 117,527
Share premium 1,086,025 1,086,025
Hybrid capital 490,560 490,560
Retained earnings 522,268 575,850
Other reserves -156,678 -235,526
Treasury stock -4,862 -4,862
Controlling interests 2,054,840 2,029,574
Non-controlling interests 15,986 17,256
Equity 2,070,826 2,046,830
Deferred taxes 110,091 112,453
Employee-related provisions 158,419 151,670
Other non-current provisions 62,488 60,285
Long-term financial liabilities 554,094 556,521
Other non-current liabilities 3,702 3,742
Non-current provisions and liabilities 888,794 884,671
Current provisions 41,187 41,561
Payables for current taxes 9,569 8,184
Short-term financial liabilities 508,541 402,085
Trade payables 255,243 285,844
Other current liabilities 232,155 244,175
Current provisions and liabilities 1,046,695 981,849
Total Equity and Liabilities 4,006,315 3,913,350

Consolidated Statement of Changes in Equity

2015 2014
in TEUR Group Non-controlling
interests
Total Group Non-controlling
interests
Total
Balance on 1.1. 2,029,574 17,256 2,046,830 2,252,255 1,911 2,254,166
Total comprehensive income 46,182 -1,270 44,912 -48,153 -531 -48,684
Dividend payments/hybrid coupon -20,916 0 -20,916 -32,500 0 -32,500
Increase/decrease in non-controlling interests 0 0 0 -10 1 -9
Balance on 31.3. 2,054,840 15,986 2,070,826 2,171,592 1,381 2,172,973

Consolidated Cash Flow Statement

in TEUR 1-3/2015 1-3/2014
Profit/loss before tax -31,771 -38,651
Depreciation and amortization 51,942 48,603
Impairment charges to assets 722 0
Increase/decrease in long-term provisions and deferred taxes 9,514 319
Income from investments in associates and joint ventures 1,653 4,733
Gain/loss from the disposal of fixed and financial assets -1,406 -1,543
Interest result 10,409 13,853
Interest paid -2,726 -3,794
Interest received 604 743
Income taxes paid -6,211 -6,243
Gross cash flow 32,730 18,020
Increase/decrease in inventories -62,841 -31,769
Increase/decrease in trade receivables -86,479 -90,125
Increase/decrease in trade payables -30,601 -25,864
Increase/decrease in other net current assets -8,634 632
Changes in non-cash items resulting from foreign exchange translation 6,308 -2,948
Cash flow from operating activities -149,517 -132,054
Proceeds from the sale of assets (including financial assets) 2,138 3,958
Payments made for property, plant and equipment and intangible assets -26,831 -27,175
Payments made for investments in financial assets -13 0
Increase/decrease in securities and other financial assets -7,174 -5,162
Net payments made for the acquisition of companies and non-controlling interests 0 -9
Net proceeds from the sale of companies 0 50
Cash flow from investing activities -31,880 -28,338
Increase/decrease in long-term financial liabilities -691 -28,197
Increase/decrease in short-term financial liabilities 86,891 36,211
Hybrid coupon paid -20,916 -32,500
Dividend payments from associates and joint ventures 1,394 3,218
Cash flow from financing activities 66,678 -21,268
Change in cash and cash equivalents -114,719 -181,660
Effects of exchange rate fluctuations on cash held 3,732 -337
Cash and cash equivalents at the beginning of the period 275,195 496,690
Cash and cash equivalents at the end of the period 164,208 314,693

Operating Segments

Clay Building Materials Pipes & Pavers 1)
1-3/2015
in TEUR
Eastern
Europe
Western
Europe
Eastern
Europe
Western
Europe
North
America
Holding &
Others 2)
Reconciliation 3) Wienerberger
Group
Third party revenues 80,543 251,929 83,581 140,755 53,504 1,910 612,222
Inter-company revenues 1,944 1,534 2,804 2,197 2,303 2,881 -13,338 325
Total revenues 82,487 253,463 86,385 142,952 55,807 4,791 -13,338 612,547
Operating EBITDA 1,134 20,791 1,043 13,467 1,060 -3,469 34,026
Operating EBIT -11,566 -191 -4,205 7,201 -4,992 -4,368 -18,121
Total investments 3,880 10,722 4,443 4,507 2,802 490 26,844
Capital employed 551,320 1,304,444 277,539 345,854 410,150 9,561 2,898,868
Ø Employees 4,161 5,977 2,346 1,709 1,273 208 15,674
1-3/2014
Third party revenues 60,828 258,019 84,447 134,389 45,074 1,422 584,179
Inter-company revenues 1,444 2,746 2,960 2,142 262 2,315 -11,430 439
Total revenues 62,272 260,765 87,407 136,531 45,336 3,737 -11,430 584,618
Operating EBITDA 2,547 20,569 1,042 10,582 -1,572 -5,028 28,140
Operating EBIT -6,956 -719 -4,281 4,293 -6,900 -5,900 -20,463
Total investments 3,469 12,717 2,938 5,769 1,459 832 27,184
Capital employed 420,246 1,378,158 292,459 352,170 430,546 15,176 2,888,755
Ø Employees 2,358 5,824 2,302 1,796 1,231 200 13,711

1) Export sales by the Steinzeug-Keramo Group to Poland were reclassified to the Pipes & Pavers Western Europe Segment (previously: Pipes & Pavers Eastern Europe).

2) The Holding & Others segment includes the costs for the corporate headquarters and business activities in India.

3) The 'reconciliation' column includes eliminations between Group companies.

Notes to the Interim Financial Statements

Basis of Preparation

The interim financial report as of March 31, 2015 was prepared in accordance with the principles set forth in International Financial Reporting Standards, Guidelines for Interim Reporting (IAS 34). The accounting and valuation methods in effect on December 31, 2014 remain unchanged, with the exception of the IFRS that require mandatory application as of January 1, 2015.

The following table provides an overview of the new standards and interpretations that were adopted by the EU as of the balance sheet date.

Standards/Interpretations Published
by IASB
Mandatory
first-time adoption
IFRIC 21 Levies May 2013 1.7.2014
IAS 19 Employee Benefits: Amendments November 2013 1.2.2015
Annual Improvements to IFRSs 2010 – 2012 Cycle December 2013 1.2.2015
Annual Improvements to IFRSs 2011 – 2013 Cycle December 2013 1.1.2015

IFRIC 21 Levies includes rules for the accounting treatment of obligations to pay public duties that are not regulated in another IAS/IFRS. This interpretation has no relevance for Wienerberger's consolidated financial statements.

The changes to IAS 19 Employee Benefits clarify the conditions under which employee contributions can be treated as a reduction of the service cost. The additional explanation has no effect on the consolidated financial statements.

The IFRS 2010 – 2012 improvement cycle includes additions to IFRS 8 Operating Segments: clarification of the disclosures related to the aggregation of operating segments, IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets: clarification of the proportional adjustment of accumulated depreciation under the revaluation method and IAS 24 Related Party Disclosures: clarification of the definition of a "related party" with respect to the provision of management services. The changes to the following standards involve existing requirements: IFRS 2 Share-based payment: addition to the definition of "performance conditions" and "service conditions" and IFRS 3 Business Combinations: accounting for contingent consideration to fair value at every balance sheet date. None of these changes have an effect on the consolidated financial statements.

The IFRS 2011 – 2013 improvement cycle includes clarifications on IFRS 1, IFRS 3 and IFRS 13. The change to IFRS 1 clarifies that standards which do not require mandatory application as of the balance sheet date can – but must not – be applied. In IFRS 3, the founding of joint ventures and joint operations are excluded from the scope of application. A further clarification states that IFRS 3 and IAS 40 are not mutually exclusive and requires the accounting treatment of an acquisition in accordance with IFRS 3. IFRS 13 explains that portfolio valuation is permitted for all contracts covered by the scope of application of IAS 39. None of these changes have an effect on the consolidated financial statements.

For additional information on the accounting and valuation principles, see the financial statements as of December 31, 2014, which form the basis for these interim financial statements.

The business activities of the Wienerberger Group are managed on a regional basis, whereby the segmentation also reflects the different business areas. The Clay Building Materials Europe Division covers activities in the areas of clay blocks, facing bricks and roof tiles in two segments: Clay Building Materials Eastern Europe and Clay Building Materials Western Europe. The Pipes & Pavers Europe Division contains the activities of the plastic pipe producer Pipelife, the ceramic pipe producer Steinzeug-Keramo and the concrete paver producer Semmelrock, and includes the Pipes & Pavers Eastern Europe and Pipes & Pavers Western Europe Segments. Activities in North America are reported together under the North America Segment. The Holding & Others Segment consists primarily of Wienerberger's brick business in India and activities at the corporate headquarters.

Consolidated Companies

The consolidated financial statements include all major Austrian and foreign companies in which Wienerberger AG has management control or directly or indirectly owns the majority of shares. In accordance with IFRS 11, Schlagmann and Silike keramika, spol. s.r.o. are classified as joint ventures because they are managed jointly with an equal partner. Consequently, these two companies are accounted for at equity (50%). The results of the Tondach Group are included at equity during the first six months of the previous year and are fully consolidated as of July 1, 2014 following the attainment of control.

General Shale Finance S.à.r.l., a non-consolidated company, was liquidated in January 2015.

Seasonality

The sales volumes recorded by Wienerberger during the first and last months are lower than at mid-year due to the impact of the weather on construction activity. These seasonal fluctuations are demonstrated by data from the first or fourth quarter of the year, which generally lie below results for the second and third quarters.

Wienerberger Hybrid Capital

The TEUR 500,000 hybrid capital is reported as a component of equity, while the coupon payment is shown as part of the use of earnings on the changes in equity statement. The issue costs and the discount were deducted from retained earnings. Wienerberger AG paid a coupon of TEUR 20,916 on February 9, 2015. The proportionate share of the accrued coupon interest for the first three months of 2015 equaled TEUR 8,014; this amount was reflected in the calculation of earnings per share and led to a reduction of EUR 0,07 (in this ratio).

Notes to the Consolidated Income Statement

Group revenues rose by 5% year-on-year to TEUR 612,547 for the first three months of 2015 (2014: TEUR 584,618). Operating EBITDA amounted to TEUR 34,026, which is TEUR 5,886 higher than the comparable prior year value of TEUR 28,140. Operating profit equaled TEUR -18,121 for the reporting period, compared with TEUR -20,463 in 2014.

Wienerberger held 570,289 treasury shares as of March 31, 2015, which were deducted for the calculation of earnings per share. The weighted number of shares outstanding from January 1, 2015 to March 31, 2015 was 116,956,475. The number of issued shares remained unchanged at 117,526,764 as of March 31, 2015.

Notes to the Consolidated Statement of Comprehensive Income

Positive foreign exchange differences of TEUR 100,856 in the first quarter of 2015 (2014: negative differences of TEUR 9,845) resulted, above all, from the US dollar and the British pound. The hedging reserve reduced equity by TEUR 20,817 (2014: increase of TEUR 142) after tax. Negative changes in the fair value of available-for-sale financial instruments totaled TEUR 1,065 (2014: positive changes of TEUR 251). The after-tax loss reduced equity by TEUR 34,062 (2014: TEUR -39,232). Total comprehensive income after tax increased equity by TEUR 44,912 for the reporting period (2014: reduction of TEUR 48,684).

Notes to the Consolidated Cash Flow Statement

Cash flow from operating activities of TEUR -149,517 was lower than the first three months of the previous year (2014: TEUR -132,054). Cash outflows of TEUR 26,844 (2014: TEUR 27,184) for investments in non-current assets (incl. financial assets) and acquisitions included TEUR 25,289 (2014: TEUR 27,164) of normal capex for maintenance and investments in technical upgrades as well as TEUR 1,555 (2014: TEUR 20) of growth capex for acquisitions, plant expansion and environmental investments.

Notes to the Consolidated Balance Sheet

Normal and growth capex for the first three months of 2015 increased non-current assets by TEUR 26,831 (2014: TEUR 27,175). Net debt rose by TEUR 219,612 over the level at December 31, 2014 to TEUR 841,113 due to the seasonal increase in working capital.

Disclosures on Financial Instruments

The following table shows the financial assets and liabilities carried at fair value by Wienerberger and their classification under the three hierarchy levels defined by IFRS 13. No items were reclassified between hierarchy levels during the reporting period.

Financial assets and financial liabilities carried at fair value

Carrying
amount per
in TEUR Level 1 Level 2 Level 3 31.3.2015
Assets
Shares in funds 6,979 6,979
Corporate bonds 12,211 12,211
Stock 6,451 6,451
Other 1,767 1,767
Available-for-sale financial instruments 27,408 27,408
Derivatives from cash flow hedges 492 492
Derivatives from net investment hedges 2,170 2,170
Other derivatives 6,744 6,744
Derivatives with positive market value 9,406 9,406
Liabilities
Derivatives from cash flow hedges 10,544 10,544
Derivatives from net investment hedges 15,440 15,440
Other derivatives 269 269
Derivatives with negative market value 26,253 26,253
Carrying
amount per
in TEUR Level 1 Level 2 Level 3 31.12.2014
Assets
Shares in funds 6,857 6,857
Corporate bonds 17,494 17,494
Stock 6,452 6,452
Other 1,877 1,877
Available-for-sale financial instruments 32,680 32,680
Derivatives from cash flow hedges 1,316 1,316
Other derivatives 9,568 9,568
Derivatives with positive market value 10,884 10,884
Liabilities
Derivatives from cash flow hedges 6,371 6,371
Derivatives from net investment hedges 10,191 10,191
Other derivatives 4,764 4,764
Derivatives with negative market value 21,326 21,326
Financial liabilities due to non-banks 3,315 3,315

Wienerberger generally carries loans, receivables and liabilities at amortized cost. The fair values are shown in the following table:

Financial assets and financial liabilities at amortized cost

Level 1 Level 2 Level 3 Carrying
amount per
31.3.2015
3,301 3,301
163,236 156,352
193,260 194,541
25,047 25,015
381,543 375,908
652,914 618,322
1,242 1,186
39,421 39,657
975 945
94 94
270 270
652,914 42,002 660,474
in TEUR Level 1 Level 2 Level 3 Carrying
amount per
31.12.2014
Assets
Other non-current receivables 5,086 5,086
Liabilities
Long-term loans 168,147 160,452
Short-term loans 152,165 153,004
Financial liabilities due to financial institutions 320,312 313,456
Bonds 647,607 611,288
Long-term loans 1,200 1,148
Commercial Paper 6,210 6,240
Short-term loans 1,470 1,438
Finance leases 133 133
Financial liabilities owed to subsidiaries 262 262
Financial liabilities due to non-banks 647,607 9,275 620,509

Risk Report

Wienerberger focuses on the early identification and active management of risks in its operating environment within the context of the principles defined by the Managing Board. The major risks identified by the Group during the first three months of 2015 were the slow recovery of the construction industry in individual markets and the resulting pressure on prices as well as competition from substitution products like concrete, steel, wood, limestone, glass or aluminum. Management sees further relevant risks in higher input costs and volatile raw material prices for plastics. Wienerberger regularly monitors the risks in its operating environment as part of its corporate risk management program and takes appropriate actions to counter these risks whenever necessary. The development of the construction industry and major indicators of the demand for building materials are watched closely to permit the timely adjustment of capacity in the plant network to reflect changing market conditions. The price levels on local markets are also monitored regularly, and pricing strategies are adjusted if necessary. Wienerberger counters the risk of rising input costs by establishing fixed procurement prices at an early point in time and by concluding longterm supply contracts. The risks associated with rising energy costs are reduced through the Group's hedging strategy. The risks expected by Wienerberger during the remaining nine months of this year are linked to higher input costs, uncertainty over further developments in the construction industry and continued pressure on prices in individual markets.

The plastic pipe business is substantially influenced by the development of raw material prices, which correlate closely with the price of crude oil. Synthetic polymers comprise a major part of the production costs for plastic pipes. The volatility of raw material prices has increased considerably in recent years. Strong fluctuations within individual months require flexible pricing to limit the effects of these price changes and/or pass them on to the market. Fast price management is also a decisive factor for the sustainable protection of earnings. In addition to price risk, this business is exposed to a raw material supply risk. Any interruption in supplies would invariably disrupt production. Possible shortages on the raw materials market are countered by extensive measures in procurement, production and sales as well as price management.

Wienerberger is exposed to legal risks in connection with increasingly strict environmental, health and safety regulations, whereby the Group could become liable for penalties or claims to compensation for damages in the event of non-compliance. In June 2012 the EU Commission ordered searches at the offices of plastic pipe and fitting producers in connection with alleged agreements in violation of cartel law, which also included Pipelife International GmbH. The responsible authorities have not issued any findings to date. It should be noted that price-fixing agreements are not part of business policies in the Wienerberger Group; internal guidelines expressly prohibit such activities and call for sanctions in the event of violations.

Related Party Transactions

The following companies and persons are considered to be related parties: the members of the Supervisory and Managing Boards, associated companies, joint ventures and non-consolidated subsidiaries of Wienerberger AG as well as the ANC private foundation and its subsidiaries.

The ANC private foundation operates landfill activities in Austria that were transferred by Wienerberger AG in 2001 and owns a limited amount of assets (in particular real estate). On April 18, 2014 Wienerberger announced a change in the managing board of the ANC Private Foundation through the appointment of two members of Wienerberger top management, which allows Wienerberger to exercise control over the foundation. In accordance with IFRS 10, the ANC Private Foundation cannot be consolidated because the shareholders of Wienerberger AG, and not the company itself, are entitled to the variable cash flows from the foundation. The balance sheet total of the ANC Private Foundation amounted to TEUR 25,719 as of March 31, 2015 (31.12.2014: TEUR 25,849) and consists primarily of operating land and buildings totaling TEUR 13,035 (31.12.2014: TEUR 12,994) and securities and liquid funds of TEUR 10,012 (31.12.2014: TEUR 11,567), including commercial paper of TEUR 2,992 issued by Wienerberger. The foundation had no financial liabilities as of March 31, 2015.

Wienerberger AG and its subsidiaries finance associated companies, joint ventures and non-consolidated subsidiaries through loans granted at ordinary market conditions. The outstanding receivables due from associated companies and joint ventures amounted to TEUR 13,545 as of March 31, 2015 (31.12.2014: TEUR 11,987), while the comparable amount for non-consolidated subsidiaries was TEUR 9,162 (31.12.2014: TEUR 8,742).

Waiver of Audit Review

This interim report by Wienerberger AG was neither audited nor reviewed by a certified public accountant.

Statement by the Managing Board

We confirm to the best of our knowledge that these interim financial statements (interim financial report under IFRS) give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of the important events that occurred during the first three months of the financial year and their impact on the interim financial statements, of the principal risks and uncertainties for the remaining nine months of the financial year and of the major related party transactions to be disclosed.

The Managing Board of Wienerberger AG Vienna, May 7, 2015

Heimo Scheuch Willy Van Riet Chief Executive Officer Chief Financial Officer

Financial Calendar

Start of the quiet period
Results of 2014: Press and Analysts Conference in Vienna
Analysts Conference in London
Publication of the 2014 Annual Report on the Wienerberger website
Start of the quiet period
Results for the First Quarter of 2015
146th Annual General Meeting in the Austria Center Vienna
Deduction of dividends for 2014 (ex-day)
Payment day for 2014 dividends
Publication of the Sustainability Report 2014
Start of the quiet period
Results for the First Half-Year of 2015:
Press and Analysts Conference in Vienna
Analysts Conference in London
Capital Markets Day 2015
Start of the quiet period
Results for the First Three Quarters of 2015

Information on the Company and the Wienerberger Share

Head of Investor Relations Klaus Ofner
Shareholders' Telephone +43 1 601 92 10221
E-Mail [email protected]
Internet www.wienerberger.com
Vienna Stock Exchange WIE
Thomson Reuters WBSV.VI; WIE-VI
Bloomberg WIE AV
Datastream O: WNBA
ADR Level 1 WBRBY
ISIN AT0000831706

Wienerberger Online Annual Report 2014:

http://annualreport.wienerberger.com

The report on the First Quarter 2015 is available in German and English.

Production Sites and Market Positions

Wienerberger is the only multinational producer of bricks, roof tiles, concrete pavers and pipe systems with a total of 203 production sites in 30 countries and activities in international export markets. We are the world's largest producer of bricks and number one on the clay roof tile market in Europe. Furthermore we hold leading positions in pipe systems in Europe and concrete pavers in Central-East Europe.

Wienerberger Markets in North America

A WORTHWHILE LOOK AHEAD.

PUBLISHER

Wienerberger AG A-1100 Vienna, Wienerberg City, Wienerbergstrasse 11 T +43 1 601 92 0, F +43 1 601 92 10425

INQUIRIES MAY BE ADDRESSED TO

The Managing Board: Heimo Scheuch, CEO, Willy Van Riet, CFO Investor Relations: Klaus Ofner

CONCEPT AND REALIZATION

Mensalia Unternehmensberatung DESIGN Mensalia Unternehmensberatung and Erdgeschoss TEXT PAGES Produced in-house using FIRE.sys

PHOTOS

Klaus Vyhnalek

The Report on the First Quarter of 2015, released on March 7, 2015 is also available for download under www.wienerberger.com.

Available in German and English.

Printed by: Grasl FairPrint

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