Wienerberger AG

Quarterly Report • Nov 3, 2010

Report on the First Three Quarters of 2010

Earnings Data		1-9/2009	1-9/2010	Chg. in %	Year-end 2009
Revenues	in € mill.	1,416.7	1,343.3	-5	1,816.9
Operating EBITDA 1)	in € mill.	177.5	160.5	-10	208.6
Operating EBIT 1)	in € mill.	36.7	17.6	-52	19.0
Profit before tax	in € mill.	-225.3	-15.6	+93	-295.6
Profit after tax 2)	in € mill.	-198.2	-13.5	+93	-258.7
Earnings per share	in €	-2.68	-0.32	+88	-3.17
Adjusted earnings per share 3)	in €	-0.01	-0.32	<-100	-0.34
Free cash flow 4)	in € mill.	109.9	83.3	-24	250.8
Maintenance capex	in € mill.	36.6	32.8	-10	62.7
Growth investments	in € mill.	67.7	30.2	-55	71.4

Balance Sheet Data		31.12.2009	30.9.2010	Chg. in %
Equity 5)	in € mill.	2,547.0	2,545.6	0
Net debt	in € mill.	408.0	389.9	-4
Capital employed	in € mill.	2,816.8	2,795.5	-1
Balance sheet total	in € mill.	4,087.4	4,104.6	0
Gearing	in %	16.0	15.3	-
Employees 6)		12,676	11,897	-6

Stock Exchange Data		1-12/2009	1-9/2010	Chg. in %
Share price high	in €	17.24	16.18	-6
Share price low	in €	4.70	9.55	>100
Share price at end of period	in €	12.78	12.07	-6
Shares outstanding (weighted) 7)	in 1,000	91,298	116,413	+28
Market capitalization at end of period	in € mill.	1,502.0	1,418.0	-6

Operating Segments 1-9/2010 in € mill. and %		Central East Europe		Central West Europe	North West Europe			North America		Investments and Other 8)
Revenues	407.5	(-12%)	295.4	(-2%)	550.8	(-2%)	113.2	(-4%)		-23.6 (+12%)
Operating EBITDA 1)	67.4	(-23%)	26.6	(-8%)	86.5	(+1%)		-0.3 (+97%)	-19.7	(-31%)
Operating EBIT 1)	19.5	(-51%)	1.9	(-37%)	38.0	(+5%)		-18.1 (+30%)	-23.7	(-43%)
Total investments	20.2	(-58%)		14.3 (+64%)	22.8	(-32%)	5.1	(-43%)	0.6	(-88%)
Capital employed	772.4	(-6%)	356.6	(-18%)	1,125.9	(-5%)	489.7	(-4%)		50.9 (+13%)
Employees 6)	4,481	(-15%)	2,026	(-7%)	4,012	(-2%)	1,130	(+2%)	248	(+2%)

1) Adjusted for non-recurring income and expenses

2) Before non-controlling interests and accrued hybrid coupon

3) Adjusted for non-recurring income and expenses; after accrued hybrid coupon

4) Cash flow from operating activities minus cash flow from investing activities plus growth investments

5) Equity including non-controlling interests and hybrid capital

6) Average number of employees for the year

7) Adjusted for treasury stock

8) Including Group eliminations and holding costs; negative revenues are due to the offset of inter-company sales in this segment

Note: In the table of the operating segment data, changes in % to the comparable prior year period are shown in brackets.

Chief Executive's Review

Dear Shareholders,

New residential construction during the first nine months of 2010 was influenced, above all, by the uncertain economic climate and resulting low consumer confidence. The markets in Central-East Europe remained difficult without any visible signs that the demand for building materials has bottomed out for the most part, but the first indications of slight stabilization at a low level in Western Europe were confirmed. In this connection, I would like to highlight that we were still able to increase operating EBITDA by 7% to € 82.2 million in the third quarter based on our own strength without any tailwind from the markets.

Wienerberger recorded a 5% decline in revenues to € 1,343.3 and 10% lower operating EBITDA of € 160.5 million for the first nine months of 2010. Our strong financial base allowed us to make further proactive price adjustments in Central-East Europe, which will result in a full-year negative price effect at the current level for the group. We continued to strengthen and expand our market position successfully across all countries in this region, and see this step as an important investment in the future.

Poland, where the downturn in demand began to level off, developed slightly better than the other countries in Central-East Europe. The Czech Republic, Slovakia, Hungary, Romania and Bulgaria remained weak, with further declines in individual areas. In contrast, the stabilizing trend in Western Europe was reinforced during the third quarter. The gradual improvement in Great Britain and Germany continued, while the demand for building materials in France and Belgium steadied. Only the Netherlands and Italy recorded further declines. The market in North America has bottomed out as expected. In general, I anticipate these trends will continue through the end of the year.

With regard to the announced refocusing to expand our core business and to make meaningful additions to the existing product portfolio, I would like to report the completion of the first successful steps. At the end of October, we acquired the remaining 25% stake in Semmelrock, the leading supplier of high-quality paving products in Austria and Eastern Europe. We see substantial pent-up demand in the infrastructure sector and in garden design throughout this region. I am also pleased to announce an agreement for the acquisition of Steinzeug Abwassersysteme, the worldwide market leader and Europe's largest producer of clay pipe systems. The demand for new installations in Eastern Europe and the need for replacement investments in Western Europe will create interesting opportunities for business development in this area.

In conclusion, I believe the building materials sector will again be faced with a variety of challenges during the coming year. The still limited visibility in Eastern Europe, uncertainty over the effects of partly announced government spending cuts on consumer confidence and the high unemployment rate lead me to remain cautious with my forecasts for 2011. Nevertheless, I view the future of Wienerberger with optimism. We have adapted not only our cost structure, but also positioned our products at a level appropriate for the current subdued market and are well equipped for a recovery. Our focus will therefore remain on product innovations and the development of new products, in order to further improve our strategic position as a full-range system provider.

Heimo Scheuch, Chief Executive Officer of Wienerberger AG

No general recovery in Central-East Europe; stabilization in Western Europe

Strategic steps to expand core business

Strategic position as a full-range system provider

Interim Management Report

FINANCIAL REVIEW

Earnings

Wienerberger recorded a 5% year-on-year decline in revenues to € 1,343.3 million for the first nine months of 2010. This development comprised a decrease of 2% in volumes and 5% in prices that was partly offset by 2% of positive foreign exchange effects from stronger East European currencies as well as the US dollar and the Swiss franc. The revenue decline resulted primarily from weaker volumes in Central-East Europe, while Western Europe and North America saw signs of stabilization at a low level. The price decrease is explained, above all, by the Group's proactive pricing policy in Eastern Europe. Construction activity in this region was limited during the first nine months by the severe winter and heavy rain, and was characterized by increased competition due to market-related excess capacity.

Operating EBITDA fell by 10% year-on-year to € 160.5 million. Wienerberger started the year with operating EBITDA of € -22.6 million for the first quarter because of the bad weather, compared with operating EBITDA of € 16.2 million in the first three months of the previous year. The second and third quarters brought a substantial improvement in earnings. Additional fixed cost reductions and better capacity utilization supported an operating EBITDA increase of 7% for the third quarter.

Financial results were substantially below the prior year at € -33.2 million (2009: € -28.0 million), in particular due to non-recurring expenses related to the early repayment of loans and issue costs for the new bond placed in April as well as lower earnings contributions from associates (Tondach Gleinstätten and Pipelife Group).

Profit/loss before tax was negative at € -15.6 million due to lower operating results, but significantly better than in 2009 due to the absence of non-recurring restructuring costs. The tax rate for the first nine months of 2010 equaled 13.5%, compared with 12.0% in the previous year. Based on a rise in the number of shares outstanding following last year's capital increase, earnings per share amounted to € -0.32 (2009: € -0.01) after an adjustment for restructuring effects and the hybrid coupon. The calculation of earnings per share includes the deduction of accrued interest on the hybrid capital.

Cash Flow

Gross cash flow totaled € 141.1 million, which represents a sound increase of € 67.1 million over the first nine months of the previous year. This improvement reflected the absence of restructuring costs as well as the positive effects of the fixed cost reduction program implemented in earlier years. Cash flow from operating activities was € 13.8 million lower than in the comparable prior year period, which was significantly influenced by the extensive working capital program in 2009, which included significant reductions to inventories in that year.

Cash outflows for investments and acquisitions were cut substantially in comparison with the first nine months of 2009 to € 63.0 million. Of this total, € 30.2 million was used to complete ongoing projects (growth capex) and € 32.8 million represented maintenance capex.

Q1 - Q3 Revenues and operating EBITDA

The proceeds from the bond issued in April 2010 and the repurchase of the 2005 bond are shown as a net amount under the change in long-term financial liabilities. A coupon of € 32.5 million was paid on the hybrid capital in February. The dividend for the 2009 financial year was waived to preserve cash.

Assets and Financial Position

Group equity was reduced by the payment of the € 32.5 million hybrid coupon in February 2010 and the after-tax loss recorded for the first nine months. These effects were only partly offset by positive currency translation differences of € 64.3 million recognized directly in equity, which were primarily attributable to the US dollar, the Polish zloty and the Swiss franc. Group equity declined slightly to € 2,545.6 million as of September 30, 2010. Net debt decreased further from € 484.8 million on June 30, 2010 to € 389.9 million, and reduced gearing to only 15%.

Financing and Treasury

At the end of April, Wienerberger issued a new bond with a 4¼-year term and a volume of € 250 million. This reduced mid-term refinancing requirements and further improved the term structure of the Group's liabilities. The proceeds from the new bond were used in part to repurchase approx. € 140 million of the 2005 bond that is due in April 2012. Part of the remaining funds was also used to repay other financial liabilities.

Treasury Ratios	30.9.2009	30.9.2010	Covenant level
Net debt / LTM operating EBITDA 1)	2.1	2.0	<3.75 4.0 2)
(Equity minus goodwill) / (Total Assets minus goodwill)	52%	56%	>35%

1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

2) This ratio is permitted to rise to 4.0 on a maximum of two occasions

Gearing reduced to only 15%

Term structure of liabilities further improved

Third Quarter of 2010

Operating EBITDA showed an increase of 7% to € 82.2 million at slightly lower revenues

Group revenues roughly matched the prior year at € 517.7 million for the third quarter, while operating EBITDA rose by 7% to € 82.2 million. Above all, the improvement in earnings was made possible by streamlined cost structures and underscores the success of the restructuring measures implemented in 2009. Production costs were lower, in particular due to the realized savings as well as better capacity utilization and lower energy costs. Central-East Europe reported a revenue decline, with -7% for the third quarter. The construction sector in the Czech Republic, Slovakia, Romania, Bulgaria and Hungary remained weak as a result of the crisis, but the downturn in demand leveled off in Poland. Operating EBITDA was 5% lower than the prior year in this region because of volume declines and a substantial drop in average prices. Revenues in Central-West Europe rose by 2% to € 119.6 million following modest recovery in new residential construction on the German market and stable volumes in Switzerland. However, earnings fell by 3% because of strong competitive pressure in Italy. All countries in North-West Europe, with the exception of the Netherlands, recorded an increase in revenues and earnings. The market in the Netherlands continued to decline due to the lack of financing for residential construction projects and cost cuts in the public sector. Operating EBITDA in North-West Europe rose by 53% to € 36.8 million in the third quarter. In North America, revenues reflected the comparable prior year period. The demand for bricks in the USA was slightly lower than the previous year, but there were signs of stabilization at a low level. North America generated operating EBITDA of € 0.2 million in the third quarter based on cost savings and improved capacity utilization.

Revenues in € mill.	7-9/2009	7-9/2010	Chg. in %
Central-East Europe	187.1	174.2	-7
Central-West Europe	117.7	119.6	+2
North-West Europe	182.3	191.2	+5
North America	42.0	41.7	-1
Investments and Other 1)	-10.6	-9.0	+15
Wienerberger Group	518.5	517.7	0

Operating EBITDA 2) in € mill.	7-9/2009	7-9/2010	Chg. in %
Central-East Europe	38.7	36.8	-5
Central-West Europe	17.5	16.9	-3
North-West Europe	24.0	36.8	+53
North America	-1.1	0.2	>100
Investments and Other 1)	-2.2	-8.5	<-100
Wienerberger Group	76.9	82.2	+7

1) Including Group eliminations and holding costs; negative revenues due to the offset of inter-company sales in this segment

2) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

OPERATING SEGMENTS

Central-East Europe

The development of sales volumes in Central-East Europe during the reporting period was negatively influenced by the bad weather as well as the crisis-related low level of construction. The long harsh winter during the first months of the year and flooding throughout large parts of the region in April and May triggered a sharp drop in the demand for building materials. Sales volumes of clay blocks in the first nine months were therefore lower than the previous year. Revenues in Central-East Europe fell by 12% to € 407.5 million (2009: € 462.6 million), while significantly lower average prices led to a decline of 23% in operating EBITDA to € 67.4 million (2009: € 87.2 million). Central-East Europe generated 30% of Group revenues and 42% of operating EBITDA for the first nine months of 2010.

While the downturn in the demand for building materials leveled off in Poland during the first nine months, the markets in the Czech Republic, Slovakia, Hungary and Southeast Europe remained difficult. The downward trend in new residential construction continued in Romania and Bulgaria. In spite of this development, we were able to expand our positions in these two markets.

We do not expect any tangible improvement in the building materials sector of Central-East Europe during the last quarter of this year. Visibility remains very limited, but we intend to further expand market position in this difficult operating environment by continuing our proactive pricing policy and concentrating on higher quality products. For the full year, we expect lower sales volumes as well as a significant decline in earnings due to the weak first quarter and a substantially lower average price level compared with the previous year.

Central-East Europe		1-9/2009	1-9/2010	Chg. in %
Revenues	in € mill.	462.6	407.5	-12
Operating EBITDA 1)	in € mill.	87.2	67.4	-23
Operating EBIT 1)	in € mill.	39.7	19.5	-51
Total investments	in € mill.	48.2	20.2	-58
Capital employed	in € mill.	821.8	772.4	-6
Ø Employees		5,300	4,481	-15
Sales volumes clay blocks	in mill. NF	2,355	2,165	-8
Sales volumes concrete pavers	in mill. m2	8.44	8.89	+5
Sales volumes concrete roof tiles 2)	in mill. m2	10.72	8.95	-17

1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

2) Sales volumes are not proportional, but reflect 100%

Sales volumes lower than the previous year

Q1 - Q3 Revenues by Segment

Q1 - Q3 operating EBITDA by Segment

Central-West Europe

Positive trend continues in Germany

Revenues of the Central-West Europe segment totaled € 295.4 million (2009: € 300.1 million) or only 2% less than the comparable prior year period. Operating EBITDA was negatively affected, above all by the continuing pressure on prices in Italy, and fell by 8% to € 26.6 million (2009: € 28.9 million). Central-West Europe recorded 22% of Group revenues and 17% of operating EBITDA for the reporting period.

The upward trend in the demand for bricks in the German market continued against the backdrop of rising competitive pressure, with resulting moderate year-on-year growth in sales volumes. Stability in the renovation market supported a slight increase in sales volumes of roof tiles. In Switzerland, clay block volumes roughly matched the prior year. Sales volumes of roof tiles increased slightly in a steady renovation market. The demand for bricks in Italy continued to decline – but at a somewhat slower pace – while the pressure on prices continued because of the structural overcapacity.

We expect a continuation of the positive trend in Germany during the remainder of 2010, albeit from a very low level. Switzerland should record sound development through the end of the year, and in Italy we anticipate the building materials market will remain on a downward trend.

Central-West Europe		1-9/2009	1-9/2010	Chg. in %
Revenues	in € mill.	300.1	295.4	-2
Operating EBITDA 1)	in € mill.	28.9	26.6	-8
Operating EBIT 1)	in € mill.	3.0	1.9	-37
Total investments	in € mill.	8.7	14.3	+64
Capital employed	in € mill.	432.3	356.6	-18
Ø Employees		2,176	2,026	-7
Sales volumes clay blocks	in mill. NF	998	1,084	+9
Sales volumes facing bricks	in mill. WF	116	98	-16
Sales volumes clay roof tiles 2)	in mill. m2	6.01	6.22	+3

1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

2) Sales volumes of clay roof tiles include accessories

North-West Europe

The countries in the North-West Europe segment, with the exception of the Netherlands, also recorded higher revenues and earnings in the third quarter and thereby offset the major part of the declines from the weather-related weak first three months. Revenues for the first nine months amounted to € 550.8 million (2009: € 562.5 million) and operating EBITDA was € 86.5 million (2009: € 85.4 million). This segment generated 41% of Group revenues and an impressive 54% of operating EBITDA for the reporting period.

Sales volumes in Great Britain also increased during the third quarter, but from a low level. In total, substantially more facing bricks and clay roof tiles were sold in the first nine months of 2010 than in the comparable period of 2009. The year-on-year decline in average prices on the British market resulted from a shift in the product mix to higher sales of commodity products and concrete roof tiles.

Great Britain with significant volume growth

New residential construction in France developed somewhat better than expected at the beginning of the year and supported an increase in sales volumes of clay blocks and clay roof tiles. In Belgium sales volumes were stable at a low level. The market in the Netherlands continued to decline due to the lack of financing for residential construction projects and cost cuts in the public sector, but the renovation sector stabilized.

We expect modest recovery in Great Britain and France as well as stable development in Belgium for the full year. In the Netherlands, we are anticipating a further decline in the demand for building materials. Revenues in this segment should be slightly higher than 2009, while improved capacity utilization should have a positive effect on earnings.

North-West Europe		1-9/2009	1-9/2010	Chg. in %
Revenues	in € mill.	562.5	550.8	-2
Operating EBITDA 1)	in € mill.	85.4	86.5	+1
Operating EBIT 1)	in € mill.	36.3	38.0	+5
Total investments	in € mill.	33.5	22.8	-32
Capital employed	in € mill.	1,181.8	1,125.9	-5
Ø Employees		4,098	4,012	-2
Sales volumes clay blocks	in mill. NF	716	747	+4
Sales volumes facing bricks	in mill. WF	895	897	0
Sales volumes clay roof tiles 2)	in mill. m2	10.83	11.37	+5

1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

2) Sales volumes of clay roof tiles include accessories

North America

Revenues in the North America segment fell by only 4% to € 113.2 million (2009: € 118.3 million). However, operating EBITDA improved by 97% to € -0.3 million as a result of the measures implemented in 2009 and significantly better capacity utilization. The demand for bricks declined year-on-year over the first nine months, but a quarterly comparison shows initial signs of stabilization. This segment contributed 8% to Group revenues.

Since the beginning of the year, the NAHB (National Association of Home Builders) has revised its forecasts for 2010 housing starts downward from 700,000 to 600,000 units, confirming our assumption at the beginning of this year.

We are not anticipating any significant changes in this market during the last three months of 2010, in particular because the US economy has remained subdued ahead of the recently held congressional elections. For the full year, we expect a strong increase in capacity utilization over the prior year to 40-50% as well as stable volumes at a low level with positive operating results, even if we have adjusted prices locally as a response to aggressive pricing policy by the competition. Plans also call for an increase in the merchandise component of direct sales in order to improve fixed cost coverage.

Positive results expected for full year

North America		1-9/2009	1-9/2010	Chg. in %
Revenues	in € mill.	118.3	113.2	-4
Operating EBITDA 1)	in € mill.	-9.0	-0.3	+97
Operating EBIT 1)	in € mill.	-25.7	-18.1	+30
Total investments	in € mill.	9.0	5.1	-43
Capital employed	in € mill.	510.0	489.7	-4
Ø Employees		1,105	1,130	+2
Sales volumes facing bricks	in mill. WF	245	226	-8

1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

Investments and Other

The Investments and Other segment comprises the corporate headquarters and related costs, the Wienerberger brick business in India and core investments held by the Group. These investments include the 50/50 Pipelife joint venture and a 25% investment in Tondach Gleinstätten (consolidated at-equity, and therefore not included in operating results).

The development of business at Tondach Gleinstätten was heavily influenced by the downturn markets across Eastern Europe. The declining construction activity was responsible for a significant drop in sales volumes similar to the brick industry.

The Pipelife Group – a joint venture with our Belgian partner Solvay – is one of the largest international suppliers of plastic pipe systems with over 2,400 employees in 29 countries (Europe and the USA). The company's products are used in residential construction (water and heating) as well as in the public sector (water supply, sewage, gas, etc). In reaction to the market decline a strong focus was laid on the reduction of fixed costs and working capital. This led to the permanent shutdown of plants in Croatia and Romania – with the continuation of sales activities as well as market deliveries from the surrounding regions – and also in Spain as well as the termination of the sales organization in Portugal, as announced in October of this year. These measures represent an important step to strengthen the position of the Pipelife Group for the future, but will result in a negative net contribution to Wienerberger Group for 2010. Wienerberger played a strong part in the restructuring process and believes the Pipelife Group now has a stronger position for the future. We intend to actively promote the development of Pipelife, since it represents an important part of our business due to its close connection with our industry and markets.

Investments and Other 1)		1-9/2009	1-9/2010	Chg. in %
Revenues	in € mill.	8.6	9.0	+5
Operating EBITDA 2)	in € mill.	-15.0	-19.7	-31
Operating EBIT 2)	in € mill.	-16.6	-23.7	-43
Capital employed	in € mill.	45.2	50.9	+13
Ø Employees		243	248	+2

1) Revenues excluding Group eliminations, earnings including holding company costs

2) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

Pipelife, an important support for Wienerberger

Interim Financial Statements (IFRS) Wienerberger Group

Income Statement

in TEUR	7-9/2010	7-9/2009	1-9/2010	1-9/2009
Revenues	517,758	518,535	1,343,325	1,416,660
Cost of goods sold	-346,155	-355,335	-945,163	-994,096
Gross profit	171,603	163,200	398,162	422,564
Selling expenses	-106,320	-100,077	-297,344	-295,259
Administrative expenses	-29,981	-28,974	-90,619	-92,772
Other operating expenses	-12,754	-11,225	-34,449	-32,161
Other operating income	11,737	5,947	41,865	34,309
Profit/loss before restructuring costs and impairment charges to property, plant and equipment and goodwill	34,285	28,871	17,615	36,681
Restructuring costs and impairment charges to property, plant and equipment	0	-22,399	0	-109,573
Impairment charges to goodwill	0	1,001	0	-124,389
Profit/loss after restructuring costs and impairment charges to property, plant and equipment and goodwill	34,285	7,473	17,615	-197,281
Income from investments in associates	2,668	4,612	1,184	4,760
Interest and similar income	2,746	4,893	11,258	14,542
Interest and similar expenses	-13,280	-14,655	-45,384	-42,617
Other financial results	3,259	-4,781	-226	-4,683
Financial results	-4,607	-9,931	-33,168	-27,998
Profit/loss before tax	29,678	-2,458	-15,553	-225,279
Income taxes	-3,775	8,273	2,096	27,064
Profit/loss after tax	25,903	5,815	-13,457	-198,215
Thereof attributable to non-controlling interests	639	-84	-801	-899
Thereof attributable to hybrid capital holders	8,192	8,192	24,308	24,308
Thereof attributable to equity holders	17,072	-2,293	-36,964	-221,624
Adjusted earnings per share (in EUR)	0.15	0.16	-0.32	-0.01
Earnings per share (in EUR)	0.15	-0.03	-0.32	-2.68
Diluted earnings per share (in EUR)	0.15	-0.03	-0.32	-2.68

Statement of Comprehensive Income

		1-9/2010			1-9/2009
		Non-controlling			Non-controlling
in TEUR	Group	interests	Total	Group	interests	Total
Profit/loss after tax	-12,656	-801	-13,457	-197,316	-899	-198,215
Foreign exchange adjustments	60,993	225	61,218	-10,730	-255	-10,985
Foreign exchange adjustments to
investments in associates	3,093	0	3,093	-950	0	-950
Changes in hedging reserves	-19,837	0	-19,837	10,185	0	10,185
Other 1)	30	0	30	139	0	139
Other comprehensive income 2)	44,279	225	44,504	-1,356	-255	-1,611
Total comprehensive income	31,623	-576	31,047	-198,672	-1,154	-199,826
Thereof share planned for hybrid capital holders	24,308			24,308
Thereof comprehensive income attributable
to equity holders	7,315			-222,980

1) Changes in the fair value of available-for-sale financial instruments, which were recognized to the statement of comprehensive income, are included under "Other".

2) The components of other comprehensive income are reported net of tax.

Balance Sheet

in TEUR	30.9.2010	31.12.2009
Assets
Intangible assets and goodwill	649,213	641,109
Property, plant and equipment	1,866,999	1,905,437
Investment property	48,187	41,272
Investments in associates	120,204	118,977
Other financial assets	19,807	19,250
Deferred tax assets	53,019	37,636
Non-current assets	2,757,429	2,763,681
Inventories	544,291	552,352
Trade receivables	176,394	110,312
Other current receivables	108,895	118,694
Securities and other financial assets	98,739	92,766
Cash and cash equivalents	418,823	449,612
Current assets	1,347,142	1,323,736
Total assets	4,104,571	4,087,417
Equity and Liabilities
Issued capital	117,527	117,527
Share premium	1,115,896	1,115,896
Hybrid capital	492,896	492,896
Retained earnings	965,686	1,010,842
Other reserves	-129,569	-173,848
Treasury stock	-40,697	-40,697
Non-controlling interests	23,840	24,416
Equity	2,545,579	2,547,032
Employee-related provisions	61,818	61,795
Deferred taxes	102,784	89,164
Other non-current provisions	69,252	66,307

Total Equity and Liabilities	4,104,571	4,087,417
Current provisions and liabilities	432,592	414,568
Other current liabilities	163,442	128,841
Trade payables	164,290	156,000
Short-term financial liabilities	48,729	69,851
Other current provisions	56,131	59,876
Non-current provisions and liabilities	1,126,400	1,125,817
Other non-current liabilities	33,815	28,044
Long-term financial liabilities	858,731	880,507

Changes in Equity Statement

	2010 Non-controlling Group Total interests			2009 Non-controlling Group Total interests
in TEUR
Balance on 1.1.	2,522,616	24,416	2,547,032	2,473,776	23,415	2,497,191
Total comprehensive income	31,623	-576	31,047	-198,672	-1,154	-199,826
Dividend payments/hybrid coupon	-32,500	0	-32,500	-32,500	-224	-32,724
Capital increase/decrease	0	0	0	320,067	0	320,067
Increase/decrease in non-controlling interests	0	0	0	0	2,290	2,290
Increase/decrease in treasury stock	0	0	0	0	0	0
Expenses from stock option plans	0	0	0	352	0	352
Balance on 30.9.	2,521,739	23,840	2,545,579	2,563,023	24,327	2,587,350

Cash Flow Statement

in TEUR	1-9/2010	1-9/2009
Profit/loss before tax	-15,553	-225,279
Depreciation and amortization	142,855	140,861
Impairment charges to goodwill	0	124,389
Impairment of assets	0	80,324
Write-ups of fixed and financial assets	0	-893
Increase/decrease in long-term provisions	14,402	-27,778
Income from associates	-1,184	-4,760
Income/loss from the disposal of fixed and financial assets	-4,704	-13,690
Interest results	34,126	28,075
Interest paid	-38,868	-36,715
Interest received	8,112	12,464
Income taxes paid	1,878	-2,999
Gross cash flow	141,064	73,999
Increase/decrease in inventories	9,239	109,957
Increase/decrease in trade receivables	-65,576	-62,150
Increase/decrease in trade payables	7,485	-42,787
Increase/decrease in other net current assets	30,677	60,952
Changes in non-cash items resulting from foreign exchange translation	2,305	-935
Cash flow from operating activities	125,194	139,036
Proceeds from the sale of assets (including financial assets)	6,965	15,808
Purchase of property, plant and equipment and intangible assets	-60,059	-100,770
Payments made for investments in financial assets	-319	-245
Increase/decrease in securities and other financial assets	-16,114	-9,830
Net payments made for the acquisition of companies	-2,650	-3,340
Net proceeds from the sale of companies	0	1,451
Cash flow from investing activities	-72,177	-96,926
Increase/decrease in long-term financial liabilities	-31,279	-2,778
Increase/decrease in short-term financial liabilities	-24,492	17,801
Dividends paid by Wienerberger AG	0	0
Hybrid coupon paid	-32,500	-32,500
Dividends paid to and other changes in non-controlling interests	0	-224
Dividend payments from associates	3,050	3,632
Capital increase Wienerberger AG	0	33,579
Cash flow from financing activities	-85,221	19,510
Change in cash and cash equivalents	-32,204	61,620
Effects of exchange rate fluctuations on cash held	1,415	112
Cash and cash equivalents at the beginning of the year	449,612	206,835
Cash and cash equivalents at the end of the year	418,823	268,567

Operating Segments

1-9/2010 in TEUR	Central-East Europe	Central-West Europe	North-West Europe	North America	Investments and Other 2)	Reconciliation 3)	Wienerberger Group
Third party revenues	405,936	281,433	540,632	113,171	1,452	0	1,342,624
Inter-company revenues	1,572	13,934	10,196	0	7,566	-32,567	701
Total revenues	407,508	295,367	550,828	113,171	9,018	-32,567	1,343,325
Operating EBITDA 1)	67,417	26,554	86,513	-349	-19,665	0	160,470
Operating EBIT 1)	19,542	1,934	37,954	-18,117	-23,698	0	17,615
Restructuring costs and impairment charges to property,
plant and equipment	0	0	0	0	0	0	0
Impairment charges to goodwill	0	0	0	0	0	0	0
Total investments	20,204	14,254	22,754	5,105	711	0	63,028
Capital employed	772,412	356,610	1,125,854	489,718	50,873	0	2,795,467
Ø Employees	4,481	2,026	4,012	1,130	248	0	11,897
1-9/2009
Third party revenues	459,807	286,893	550,375	118,278	568	0	1,415,921
Inter-company revenues	2,787	13,185	12,170	0	8,018	-35,421	739
Total revenues	462,594	300,078	562,545	118,278	8,586	-35,421	1,416,660
Operating EBITDA 1)	87,224	28,890	85,366	-9,023	-14,915	0	177,542
Operating EBIT 1)	39,673	3,037	36,277	-25,691	-16,615	0	36,681
Restructuring costs and impairment charges to property, plant and equipment	-48,634	-9,843	-42,376	-7,921	-857	0	-109,573
Impairment charges to goodwill	-12,044	-29,433	-33,727	-49,185	0	0	-124,389
Total investments	48,220	8,723	33,531	8,991	4,890	0	104,355
Capital employed	821,837	432,259	1,181,831	509,961	45,244	0	2,991,132
Ø Employees	5,300	2,176	4,098	1,105	243	0	12,922

1) Before restructuring costs and impairment charges to property, plant and equipment and goodwill

2) The Investments and Other segment includes holding company costs and brick activities in India.

3) "Reconciliation" only includes the elimination of intra-group income and expenses.

Notes to the Interim Financial Statements

Basis of Preparation

The interim report as of September 30, 2010 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, 2009 remain unchanged. For additional information on the accounting and valuation principles, see the financial statements as of December 31, 2009, which form the basis for these interim financial statements. Wienerberger manages its business on a regional basis, which gives local operating management responsibility for all products within a country. Segment reporting reflects the regional focus of the Wienerberger Group.

Consolidation Range

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. Joint venture companies of the Schlagmann and Bramac Groups are consolidated on a proportional basis at 50%. Briqueterie Rouffach SAS in France, which was acquired at the end of December, was initially consolidated as of January 1, 2010 based on preliminary values; this acquisition did not result in any material goodwill. The consolidated financial statements no longer include VVT Vermögensverwaltung GmbH, which was sold as of September 30, 2009.

The comparable prior year period from January 1, 2009 to September 30, 2009 did not include Semmelrock Ebenseer GmbH & Co KG, which resulted from the combination of concrete paver activities in Austria as of May 1, 2009, or Lusit KG and Lusit GmbH.

Changes in the consolidation range increased revenues by TEUR 7,353 and reduced EBITDA by TEUR 2,598 for the period from January 1, 2010 to September 30, 2010.

Seasonality

The sales volumes recorded by Wienerberger during the first and last months are lower than at mid-year due to the negative impact of the weather on construction activity. These seasonal fluctuations are demonstrated by data from the first or fourth quarters 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 32,500 on February 9, 2010. The proportional share of the accrued coupon interest for the first nine months of 2010 equaled TEUR 24,308; this amount was reflected in the calculation of earnings per share and led to a reduction of EUR 0.21 in this ratio.

Notes to the Income Statement

Group revenues fell 5% below the comparable prior year period to TEUR 1,343,325 for the first nine months of 2010. Operating EBITDA before impairment charges and restructuring costs totaled TEUR 160,470, which is TEUR 17,072 less than the TEUR 177,542 recorded in the first nine months of 2009.

Operating profit after restructuring costs and impairment charges to property, plant and equipment and goodwill amounted to TEUR 17,615, compared with TEUR -197,281 in the prior year. The number of shares outstanding as of September 30, 2010 was 117,526,764.

Wienerberger held 1,113,603 treasury shares as of the balance sheet date, which were deducted in the calculation of earnings per share. The weighted average number of shares outstanding from January 1, 2010 to September 30, 2010 was 116,413,161.

Notes to the Statement of Comprehensive Income

Positive foreign exchange adjustments of TEUR 64,311 in the first nine months of 2010 resulted above all from the US dollar, the Swiss franc and the Polish zloty and were offset only in part by negative effects from the Hungarian forint. The hedging reserve fell by TEUR 19,837 after tax during the reporting period, primarily because of a change in the fair value of a net investment hedge. Changes in the fair value of available-for-sale securities totaled TEUR 30. Expenses of TEUR 865 were recognized to the income statement for gas futures (cash flow hedges) that became due during the reporting period; the changes in the fair value of these hedges were previously recorded under equity. The after-tax loss for the first nine months reduced equity by TEUR 13,457. Total comprehensive income after tax increased equity by TEUR 31,047 for the reporting period.

Notes to the Cash Flow Statement

The completed restructuring program supported an improvement in cash flow from operating activities to TEUR 141,064, which is nearly twice as high as the comparable prior year period (2009: TEUR 73,999). Cash outflows of TEUR 63,028 for investments in non-current assets (incl. financial assets) and acquisitions included TEUR 32,761 of maintenance, replacement and rationalization investments (maintenance capex) and TEUR 30,267 for acquisitions and the construction or expansion of plants (growth investments). Growth investments also include the acquisition of assets belonging to the insolvent brick producer Rimmele in Southern Germany during January 2010.

Notes to the Balance Sheet

Maintenance capex and growth investments for the first nine months of 2010 increased non-current assets by TEUR 60,059. Net debt fell by TEUR 18,081 from the level at December 31, 2009 to TEUR 389,899 in accordance with the seasonal trend.

Wienerberger AG placed a new TEUR 250,000 bond at the end of March, with the recognition of this instrument as a financial liability taking place on April 7, 2010. The new bond has a term of 4¼ years (due on July 7, 2014), a denomination of EUR 1,000 and a fixed coupon of 4.875%. The proceeds were used in part to repurchase the bond issued during 2005. The repurchase price equaled 100% of the nominal value of the bond plus accrued interest up to the date of repurchase. Bonds with a total volume of TEUR 140,000 were repurchased by the end of the subscription period on April 9, 2010.

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 nine months of 2010 were further weakness in the construction industry on nearly all markets and the related pressure on prices. 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. In particular, a Group-wide program was launched in 2009 to optimize working capital and thereby manage the risks associated with higher inventories. The success of this program has played an important role in strengthening liquidity. 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. The risks expected by Wienerberger during the fourth quarter are linked to uncertainty over the further development of the construction industry and continuing pressure on prices in most of the East European markets as well as Germany and a number of states in the USA.

Especially in an economic environment that has been negatively influenced by the global economic crisis, Wienerberger continues to focus on the preservation of liquidity and the protection of its healthy financial base. In keeping with this strategy, the Group increased its financial strength with the issue of a new bond and the waiver of a dividend for the 2009 financial year by shareholders. Wienerberger continues to focus on the maximization of free cash flow and the reduction of net debt through cost savings, on a decrease in working capital and a cutback in investments to a minimum. The risks associated with rising energy costs are reduced by hedging the prices for the various types of energy used by the Group.

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 Italy, the authorities have launched an investigation into possible environmental pollution at the Wienerberger locations, which has not produced any results to date. Wienerberger is also exposed to legal risks from an impending antitrust penalty in Germany, for which a provision of TEUR 10,000 was recognized as of December 31, 2008. However, the related proceedings are not expected to start before 2011. It should be noted that price-fixing agreements are in direct contravention of Wienerberger business policies; internal guidelines prohibit such practices 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 Privatstiftung and its subsidiaries. As of September 30, 2010, Wienerberger AG and its subsidiaries held participation rights of TEUR 13,707 (2009: TEUR 13,707) in the ANC Privatstiftung as well as a receivable of TEUR 16,645 (2009: TEUR 16,586).

Wienerberger AG and its subsidiaries finance joint ventures, associated companies and non-consolidated subsidiaries through loans granted at ordinary market conditions. The outstanding receivables due from associates amounted to TEUR 7,939 as of September 30, 2010 (2009: TEUR 7,556). The comparable amounts for non-consolidated subsidiaries and joint ventures were TEUR 8,906 (2009: TEUR 9,554) and TEUR 5,192 (2009: TEUR 4,597), respectively.

Significant Events after the Balance Sheet Date

On October 11, Wienerberger signed an agreement to acquire Steinzeug Abwassersysteme GmbH from ANC Vermögensverwaltung GmbH, a subsidiary of the ANC Privatstiftung. The Steinzeug Group is an international producer of clay pipes, molded components, accessories and manhole systems with two plants in Germany and one plant in Belgium. The transaction is subject to approval by the anti-trust authorities. The purchase price for this acquisition is expected to total € 34 million, depending on net debt.

On October 22, Wienerberger signed an agreement to acquire the remaining 25% stake in the Semmelrock Group, a concrete paver producer. The purchase price will involve € 7 million in cash and the transfer of one million Wienerberger shares from the treasury stock currently held by Wienerberger AG. Accordingly, the acquisition is subject to a two-week waiting period under Austrian stock corporation law and to subsequent approval by the Supervisory Board.

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 the interim financial statements provide a true and fair view of the asset, financial and earnings position of the group as required by the applicable accounting standards. Furthermore, we confirm that the interim management report for the first nine months provides a true and fair view of the asset, financial and earnings position of the group with respect to important events which occurred during the first nine months of the financial year, the effects of these events on the interim financial statements, the principal risks and uncertainties for the remaining three months of the financial year and the major related party transactions which require disclosure.

The Managing Board of Wienerberger AG Vienna, November 3, 2010

CEO CFO COO

Heimo Scheuch Willy Van Riet Johann Windisch

Financial Calendar

October 11, 2010	Start of the quiet period
November 3, 2010	Third Quarter Results for 2010
December 2/3, 2010	Capital Markets Day 2010 in Birmingham, Great Britain
February 1, 2011	Start of the quiet period
February 22, 2011	Results for 2010 Press and Analysts Conference in Vienna
February 23, 2011	Analysts Conference in London
March 31, 2011	Publication of 2010 Annual Report on the Wienerberger website
April 19, 2011	Start of the quiet period
May 10, 2011	First Quarter Results for 2011
May 13, 2011	142nd Annual General Meeting in the Austria Center Vienna
July 27, 2011	Start of the quiet period
August 17, 2011	Results for the First Six Months of 2011 Press and Analysts Conference in Vienna
August 18, 2011	Analysts Conference in London
October 19, 2011	Start of the quiet period
November 9, 2011	Third Quarter Results for 2011

Information on the Company and the Wienerberger Share

Barbara Braunöck
+43 (1) 601 92-471
communication@wienerberger.com
www.wienerberger.com
WIE
WBSV.VI; WIE-VI
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O: WNBA
WBRBY
AT0000831706

Wienerberger Online Annual Report 2009: http://annualreport.wienerberger.com

The Report on the Third Quarter of 2010 is available in German and English.

Plant Sites and Market Positions

Wienerberger is the only multinational producer of bricks and roof tiles, with a total of 229 plants in 27 countries and five export markets, including the recently opened new plant in India. We are concentrating on our core expertise and continuously expanding our geographical portfolio. Our focus is placed on the development and expansion of strong positions in the markets in which we are present.

Wienerberger Markets in North America