Wienerberger AG

Quarterly Report • Aug 17, 2011

Solid as a brick.

Report on the First Six Months of 2011

Earnings Data		1-6/2010	1-6/2011	Chg. in %	Year-end 2010
Revenues	in € mill.	825.6	985.7	+19	1,744.8
Operating EBITDA 1)	in € mill.	78.3	123.4	+58	210.8
Operating EBIT 1)	in € mill.	-16.7	27.1	>100	10.7
Profit before tax	in € mill.	-45.2	45.8	>100	-40.8
Profit after tax 2)	in € mill.	-39.4	37.5	>100	-34.9
Earnings per share	in €	-0.46	0.18	>100	-0.57
Adjusted earnings per share 3)	in €	-0.46	-0.10	+78	-0.57
Free cash flow 4)	in € mill.	-22.3	18.2	>100	176.8
Maintenance capex	in € mill.	21.6	41.0	+90	61.7
Growth investments	in € mill.	18.9	26.2	+39	88.1

Balance Sheet Data		31.12.2010	30.6.2011	Chg. in %
Equity 5)	in € mill.	2,525.7	2,466.8	-2
Net debt	in € mill.	374.5	530.0	+42
Capital employed	in € mill.	2,779.5	2,892.8	+4
Balance sheet total	in € mill.	4,059.3	4,095.3	+1
Gearing	in %	14.8	21.5	+45
Ø Employees		11,848	12,303	+4

Stock Exchange Data		1-12/2010	1-6/2011	Chg. in %
Share price high	in €	16.18	16.56	+2
Share price low	in €	9.55	12.12	+27
Share price at end of period	in €	14.29	12.70	-11
Shares outstanding (weighted) 6)	in 1,000	116,528	117,413	+1
Market capitalization at end of period	in € mill.	1,679.5	1,492.6	-11

Operating Segments 1-6/2011 in € mill. and %		Central-East Europe 7)		Central-West Europe 8)		North-West Europe 8)		North America		Investments and Other 7) 9)
Revenues	272.7	(+17%)	207.3	(+19%)	416.0	(+15%)	61.7	(-14%)	28.0	(>100%)
Operating EBITDA 1)	44.4	(+45%)	17.5	(+80%)	70.7	(+42%)		-5.3 (<-100%)	-3.9	(+65%)
Operating EBIT 1)	12.7	(>100%)		2.1 (>100%)		37.8 (>100%)	-16.3	(-34%)	-9.2	(+34%)
Total investments	22.7	(>100%)	14.5	(+65%)	25.6	(+48%)	2.9	(-3%)	1.5	(>100%)
Capital employed	862.0	(+8%)	370.3	(+2%)	1,115.2	(-4%)	461.2	(-17%)	84.1	(+83%)
Ø Employees	4,247	(-6%)	2,022	(+1%)	4,197	(+5%)	1,143	(0%)	694	(>100%)

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) Adjusted for treasury stock

7) East European holding companies are reported under the Investments and Other segment beginning in 2011 (previously: Central-East Europe); comparable figures from the prior year period were adjusted accordingly

8) The cross border trading activities of the Netherlands and Germany are reported under North-West Europe beginning in 2011 (previously: Central-West Europe); comparable figures from the prior year period were adjusted accordingly

9) Including Group eliminations and holding costs; 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,

I am pleased to report that the first half of 2011 brought a significant improvement in revenues and earnings as well as a return to the profit zone for the Wienerberger Group. After a good start in 2011 we increased revenues and earnings over the comparable prior year period during the second quarter, in spite of the subdued economic recovery. Construction activity continued to increase in Germany, France, Belgium, Poland, Czech Republic and Russia, but the operating environment in many of our other markets – above all in Southeast Europe and North America – remained difficult. I would like to emphasize that this revenue and earnings growth was a direct result of our strict cost management as well as the substantial strengthening of our market positions in Eastern Europe following the successful implementation of a proactive pricing policy in this region during 2010.

Wienerberger recorded a 19% increase in revenues to € 986 million for the first six months of 2011. The inflation-related price adjustments announced at the beginning of the year were successfully implemented and resulted in a positive price effect of +1% for the half-year, compared with -1% in the first quarter. Against this backdrop – and also due to lower standstill costs – operating EBITDA rose by a significant 58% to € 123 million and operating EBIT improved from € -17 million in the previous year to € 27 million. These figures do not include the non-recurring earnings effects of the Bramac / Tondach Gleinstätten equity swap. After the consideration of non-recurring income, interest and taxes, Wienerberger generated net profit of € 38 million.

These results demonstrate that we are on the right course. The key factors for this success include a clear focus on marketing and sales with innovative and energy-efficient products, smaller profitable acquisitions to strengthen our market positions, earlier cost-cutting measures and steady cost management. We also concluded the restructuring of our industrial portfolio during the reporting period with the takeover of a 25% stake in Tondach Gleinstätten in exchange for 50% of the concrete tile producer Bramac.

Under the assumption that there is no serious decline in the economic environment in the following months, I expect a sound improvement in operating EBITDA for the full year as well as higher margins based on an improvement in capacity utilization to an estimated 65% at the Group level. Due to our focus on energy-efficient and sustainable construction, we are addressing tomorrow's challenges today. Together with building technology specialists we developed the e⁴ BRICKHOUSE 2020, a future-oriented model house, which already exceeds the requirements of the EU's 2020 energy performance of buildings directive. The groundbreaking ceremony for this project, which is under construction in Austria together with a private investor, took place in July. Innovative POROTHERM infill blocks, KoraSun® roof tiles with integrated solar panels and temperature regulating pipe systems from Pipelife will be used for construction. The e⁴ BRICKHOUSE 2020 represents a decisive step towards realizing our vision for healthy, energy-efficient and sustainable buildings that are attractive and affordable – and will also create a platform for the future growth of the Wienerberger Group.

Heimo Scheuch, Chief Executive Officer of Wienerberger AG

58% increase in operating EBITDA to € 123 million

Strong focus on sales and strict cost management as key success factors

Sound increase in operating EBITDA and improvement in EBITDA margins expected for full year

Interim Management Report

FINANCIAL REVIEW

Earnings

H1 Revenues and operating EBITDA

Following a good start in 2011 Wienerberger recorded sound growth during the second quarter of the reporting year. Group revenues for the first six months rose by 19% to € 985.7 million. This increase comprised 17% of higher volumes, 1% of positive price effects and 1% of positive foreign exchange effects from the strong Swiss franc and several Eastern European currencies. The development was driven by substantial volume increases in European growth markets, while revenues in North America remained below the comparable prior year level. The successful implementation of price increases that were announced at the beginning of the year and a shift in the sales mix to premium products reversed the price trend during the first half of 2011: average prices were 5% lower in 2010 than 2009, only slightly lower than the first quarter of 2010 in the comparable period of 2011 and slightly higher than the first half of 2010 during the reporting period.

Operating EBITDA improved year-on-year significantly from € 78.3 million to € 123.4 million for the first half of 2011. A more favorable price level, cost savings and better capacity utilization led to a sound improvement in earnings. This was reflected in an increase in the operating EBITDA margin from 9.5% in the first half of 2010 to 12.5% for the first half of 2011. Operating EBIT rose to € 27.1 million for the reporting period, compared with € -16.7 million in the first half of 2010.

The final step in the restructuring of our industrial portfolio was the equity swap in the roof segment with our former joint venture partner Monier. Wienerberger transferred 50% of the shares in the concrete roof tile producer Bramac to Monier and, in exchange, received 25% of the shares in Tondach Gleinstätten plus an additional payment. In June the responsible antitrust authorities approved the takeover of the Tondach Gleinstätten shares. Tondach Gleinstätten was consolidated at 50% as of June 30, 2011 based on preliminary values and at the same time the Bramac Group was then deconsolidated as of June 30, 2011. Bramac results are included in the consolidation for the first six months at a proportionate share of 50%. The non-recurring effects of the transaction on earnings amounted to € 33.2 million. These effects are reported separately on the income statement under deconsolidation result and are neither included in operating EBITDA nor operating EBIT.

The year-on-year improvement in financial results to € -14.5 million (2010: € -28.6 million) resulted, above all, from an increase in income from associates (Tondach Gleinstätten, Pipelife Group), better interest results and recognized foreign exchange gains that are included under other financial results. Profit before tax rose to € 45.8 million in the first half of 2011, compared with € -45.2 million in the first half of the previous year. The tax rate amounted to 18.2% for the reporting period (2010: 13.0%). After the deduction of taxes Wienerberger recorded net profit of € 37.5 million, compared with a loss of € 39.4 million for the first half of 2010. Earnings per share equaled € 0.18 (2010: € -0.46) after an adjustment for the accrued hybrid coupon.

Revenues and

Cash Flow

The improvement in earnings led to a significant € 43.9 million rise in gross cash flow to € 107.6 million for the reporting period. Seasonal factors as well as a higher level of trade receivables due to the stronger development of business were responsible for an increase in working capital, which resulted in negative cash flow of € 10.8 million from operating activities. Cash outflows for investments and acquisitions amounted to € 67.2 million, or € 26.7 million over the very low prior year level of € 40.5 million. Of this total, € 26.2 million were used for growth investments and € 41.0 million for maintenance capex as well as technology and product related upgrade investments. The sale of the 50% stake in Bramac as part of the equity swap led to net proceeds from the sale of companies of € 43.4 million, which are reported under cash flow from investing activities. Cash flow from financing activities consisted primarily of the € 32.5 million hybrid coupon, the repurchase of a further € 18.0 million from the bond issued in 2005 and the dividend payment of € 11.7 million.

Asset and Financial Position

Group equity was reduced by the payment of the € 32.5 million hybrid coupon in February 2011 and the € 11.7 million dividend as well as € 48.9 million of negative currency translation differences that were recognized in equity and resulted primarily from the US dollar and the British pound. Profit after tax for the first half-year was unable to completely offset these effects. Group equity therefore declined by € 58.9 million to € 2,466.8 million as of June 30, 2011. Despite the initial proportionate consolidation of Tondach Gleinstätten net debt remained constant at the March 31, 2011 level of € 530.0 million due to the significant improvement in gross cash flow. The term structure of financial liabilities changed during the reporting period because a loan and the bond issued in 2005 will mature during the second quarter of 2012.

Financing and Treasury

With gearing of only 21% for the first half-year, Wienerberger has a strong balance sheet. As of June 30, 2011 the ratio of net debt to operating EBITDA equaled 2.1 and EBITDA interest coverage (operating EBITDA / interest result) was 6.8. These indicators are clearly below, respectively above the covenants included in the credit agreements.

Treasury Ratios	30.6.2010	31.12.2010	30.6.2011	Covenant level
Net debt / operating EBITDA 1)	2.6	1.8	2.1	<3.50
Operating EBITDA 1) / interest result 2)	4.3 3)	4.9 3)	6.8	>3.75

1) Adjusted for non-recurring income and expenses; calculated based on 12-month operating EBITDA

2) Calculated based on 12-month interest result

3) Covenant not valid in 2010

At the end of June Wienerberger successfully placed a new seven-year, € 100 million bond. This instrument was recognized as a financial liability on July 4, 2011, and is therefore not included in financial liabilities for the reporting period. The bond was issued to refinance financial liabilities that were scheduled to mature in 2012.

Gross cash flow rises from € 63.7 million to € 107.6 million in first half-year

Gearing remains low at 21%

Net debt / operating EBITDA equals 2.1

Continued improvement of term structure

Second Quarter of 2011

In the second quarter market developments varied widely in individual Wienerberger Group markets. While the positive trend in Germany, Belgium, France and Switzerland as well as in Poland, Czech Republic and Russia continued, the construction activity in the remaining markets in Eastern Europe and in North America remained weak. Group revenues increased due to higher volumes by 8% to € 590.6 million and operating EBITDA by 11% to € 111.6 million in a year-on-year comparison. The sound improvement in earnings was supported by cost savings as well as the price increases implemented during the first half-year.

Central-East Europe recorded an increase of 6% in revenues and 1% in operating EBITDA to € 43.9 million for the second quarter. However, volumes varied widely in the individual markets: Poland, the Czech Republic and Russia reported continued growth but new residential construction weakened further across Southeast Europe, above all in Romania and Bulgaria. In Central-West Europe, higher volumes in Germany and Switzerland supported an increase of 9% in revenues and 32% in operating EBITDA to € 20.3 million. In North-West Europe, revenues rose by 2% and operating EBITDA by 9% to € 48.8 million. This development resulted primarily from volume growth in clay blocks and clay roof tiles in France, where the positive trend in new residential construction and renovation continued, and from higher volumes in Belgium. North America was the only region to register a decline in revenues and operating EBITDA for the second quarter in a weaker-than-expected market environment. Average prices were stable, and operating EBITDA reached the break-even point during the second quarter.

Revenues in € mill.	4-6/2010	4-6/2011	Chg. in %
Central-East Europe 1)	173.5	184.5	+6
Central-West Europe 2)	118.2	128.7	+9
North-West Europe 2)	220.1	225.5	+2
North America	43.7	35.9	-18
Investments and Other 1) 3)	-9.4	16.0	>100
Wienerberger Group	546.1	590.6	+8

Operating EBITDA 4) in € mill.	4-6/2010	4-6/2011	Chg. in %
Central-East Europe 1)	43.4	43.9	+1
Central-West Europe 2)	15.4	20.3	+32
North-West Europe 2)	44.7	48.8	+9
North America	3.3	0.0	<-100
Investments and Other 1)	-5.9	-1.4	+76
Wienerberger Group	100.9	111.6	+11

1) The East European holding companies are reported under the Investments and Other segment beginning in 2011 (previously: Central-East Europe); comparable figures from the prior year period were adjusted accordingly

2) The cross border trading activities of the Netherlands and Germany are reported under North-West Europe beginning in 2011 (previously: Central-West Europe); comparable figures from the prior year period were adjusted accordingly

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

4) Adjusted for non-recurring income and expenses

Increase of 8% in Q2 revenues to € 590.6 million and 11% in operating EBITDA to € 111.6 million

Positive trend continues in several markets in Western Europe, Poland, Czech Republic and Russia; Southeast Europe weaker, USA behind expectations

OPERATING SEGMENTS

Central-East Europe

In Central-East Europe Wienerberger followed a strong first quarter that was supported by mild weather with sound second quarter performance in a very difficult market environment. Revenues for the first six months of 2011 rose by 17% to € 272.7 million and operating EBITDA increased 45% to € 44.4 million. The Polish, Czech and Russian markets were the main drivers for the 18% growth in clay block volumes, while Semmelrock reported a 25% year-on-year increase in clay paver sales. The only volume decline was recorded in concrete roof tiles at -1%. This area of business was discontinued with the sale of the 50% stake in Bramac, which was deconsolidated at the end of the first half-year. Despite minor increases at the beginning of the year, average prices in this region during the first six months were still slightly lower than the previous year. The slight negative base effect in this region reflected proactive price adjustments in several markets during the first half of 2010 to gain additional market shares. Central-East Europe generated 28% of Group revenues and 36% of operating EBITDA in the first half of 2011.

The development of business was particularly sound in Poland, our largest single market in the segment, where a substantial improvement was recorded in both revenues and earnings. The Polish business unit increased its market shares and also sold significantly higher volumes of clay blocks and roof tiles. This confirms the success of the proactive pricing strategy implemented by Wienerberger in 2010. The positive trend in new residential construction also continued in the Czech Republic, Russia, Finland and the Baltic States. Hungary as well as the markets in Southeast Europe remained difficult. In Romania, Bulgaria and the smaller markets of Southeast Europe volume declines were recorded.

We assume the first six-month trends in the individual markets will generally continue through the end of 2011. In Poland moderate growth of single family housing construction is expected for 2011. Construction activity in Russia, Finland and the Baltic States should continue to expand, while further weakness is forecasted for Slovakia, Hungary, Bulgaria, Romania and the smaller countries of Southeast Europe. We expect a positive impact in the second half-year from an improvement in average prices, since the moderate price adjustments implemented in 2011 are gradually taking hold and will increasingly offset the negative base effect from the 2010 price reductions. In total, we are expecting an increase in revenues and earnings in the Central-East Europe segment for the full year.

Following the antitrust authorities' approval of the equity swap, Bramac (concrete roof tiles) was deconsolidated and Tondach Gleinstätten (previously included at equity) was consolidated on a proportionate basis at 50% as of June 30, 2011. The income statement for the first half-year includes the non-recurring effects of this transaction under non-operating results, while the operating results of Tondach Gleinstätten will only be included as of July 1, 2011.

Operating EBITDA rises 45% to € 44.4 million

H1 Revenues by Segment

H1 operating EBITDA by Segment

Central-East Europe 1)		1-6/2010	1-6/2011	Chg. in %
Revenues	in € mill.	233.3	272.7	+17
Operating EBITDA 2)	in € mill.	30.6	44.4	+45
Operating EBIT 2)	in € mill.	-1.4	12.7	>100
Total investments	in € mill.	11.1	22.7	>100
Capital employed	in € mill.	796.1	862.0	+8
Ø Employees		4,498	4,247	-6
Sales volumes clay blocks	in mill. NF	1,225	1,443	+18
Sales volumes concrete pavers	in mill. m²	4.93	6.17	+25
Sales volumes concrete roof tiles 3)	in mill. m²	5.00	4.94	-1

1) The East European holding companies are reported under the Investments and Other segment beginning in 2011 (previously: Central-East Europe); comparable figures from the prior year period were adjusted accordingly

2) Adjusted for non-recurring income and expenses

3) Sales volumes are not proportionate, but reflect 100%

Central-West Europe

Revenues in Central-West Europe rose by 19% over the comparable prior year period to € 207.3 million (2010: € 173.6 million). This growth was driven primarily by Germany and Switzerland, where higher volumes were recorded in all product groups. Slightly higher average prices and lower standstill costs supported an improvement in operating EBITDA from € 9.7 million to an impressive € 17.5 million, which represents a plus of 80%. Half-year revenues and earnings in this segment also exceeded the first six months of 2009. Central-West Europe was responsible for 21% of revenues and 14% of operating EBITDA recorded by the Wienerberger Group.

The higher pace of construction activity in Germany during the first six months led to double-digit growth in the demand for clay blocks and roof tiles. Switzerland also reported higher volumes and a resulting improvement in revenues and earnings. In Italy, we were able to hold clay block volume sales relatively constant in a competitive market environment.

For the second half-year, we expect a continuation of the positive trend in new residential construction and renovation in Germany and Switzerland. In Italy, the difficult economic climate will most likely lead to further weakness. Central-West Europe should record a sound improvement in revenues and earnings for the full year as well as higher margins due to better capacity utilization.

Central-West Europe 1)		1-6/2010	1-6/2011	Chg. in %
Revenues	in € mill.	173.6	207.3	+19
Operating EBITDA 2)	in € mill.	9.7	17.5	+80
Operating EBIT 2)	in € mill.	-6.6	2.1	>100
Total investments	in € mill.	8.8	14.5	+65
Capital employed	in € mill.	362.2	370.3	+2
Ø Employees		1,999	2,022	+1
Sales volumes clay blocks	in mill. NF	617	738	+20
Sales volumes facing bricks	in mill. WF	56	62	+11
Sales volumes clay roof tiles 3)	in mill. m²	3.50	4.01	+15

1) The cross border trading activities of the Netherlands and Germany are reported under North-West Europe beginning in 2011 (previously: Central-West Europe); comparable figures from the prior year period were adjusted accordingly

2) Adjusted for non-recurring income and expenses

3) Sales volumes of clay roof tiles include accessories

Central-West Europe revenues increase 19%

Germany remains growth driver

Continuation of positive trend in new residential construction expected for Germany and Switzerland

North-West Europe

Revenues in North-West Europe increased 15% to € 416.0 million (2010: € 361.8 million). The positive development of new residential construction, above all in France and Belgium, as well as strong momentum in the renovation sector across the entire region led to sound volume growth in roof tiles and clay blocks. Improved capacity utilization and slightly higher average prices supported a substantial 42% increase in operating EBITDA from € 49.7 million to € 70.7 million.

France was the most dynamic market in this region during the first six months. The high pace of construction in this country was reflected in strong demand for clay blocks and roof tiles. In Belgium, the demand for building materials was fueled by a continuation of the positive trend in new residential construction and renovation. Higher volumes of roof tiles were sold in Great Britain and the Netherlands, while facing brick volumes remained near the prior year level.

In 2011 we expect moderate year-on-year revenue growth and a sound improvement in operating EBITDA in the North-West Europe segment. A steady increase in the demand for building materials is forecasted for Belgium and France, while residential construction in the Netherlands and Great Britain should remain stable.

North-West Europe 1)		1-6/2010	1-6/2011	Chg. in %
Revenues	in € mill.	361.8	416.0	+15
Operating EBITDA 2)	in € mill.	49.7	70.7	+42
Operating EBIT 2)	in € mill.	17.5	37.8	>100
Total investments	in € mill.	17.3	25.6	+48
Capital employed	in € mill.	1,159.6	1,115.2	-4
Ø Employees		3,993	4,197	+5
Sales volumes clay blocks	in mill. NF	493	590	+20
Sales volumes facing bricks	in mill. WF	592	631	+7
Sales volumes clay roof tiles 3)	in mill. m²	6.09	7.25	+19

1) The cross border trading activities of the Netherlands and Germany are reported under North-West Europe beginning in 2011 (previously: Central-West Europe); comparable figures from the prior year period were adjusted accordingly

2) Adjusted for non-recurring income and expenses

3) Sales volumes of clay roof tiles include accessories

North America

North America, which contributes 6% to Group revenues, was the only segment to record a further decline in revenues and earnings from the low prior year level. After a severe winter that allowed only limited construction activity in many regions during the first three months, new residential construction also failed to meet expectations in the second quarter. In the first half-year facing brick volumes were 11% lower than the comparable prior year period. Revenues totaled € 61.7 million, or 14% less than the prior year value of € 71.5 million, and operating EBITDA fell to € -5.3 million based on stable average prices but against the backdrop of declining capacity utilization.

Visibility over the further development of markets in the USA is still very limited. From the current point of view, the construction activity is unlikely to recover during the second half of 2011. Owing to the implemented measures to reduce fixed costs and the increasing share of merchandise, which we sell directly through our own merchants in the USA, we expect no further material decline of segment results in 2011.

Substantial earnings growth in North-West Europe

Upturn in new residential construction in France and Belgium leads to increase in roof tile and clay block volumes

Moderate revenue growth and sound EBITDA increase expected for full year

Revenue decline in North America due to severe winter and weak new residential construction

No signs of recovery in second half-year

North America		1-6/2010	1-6/2011	Chg. in %
Revenues	in € mill.	71.5	61.7	-14
Operating EBITDA 1)	in € mill.	-0.5	-5.3	<-100
Operating EBIT 1)	in € mill.	-12.2	-16.3	-34
Total investments	in € mill.	3.0	2.9	-3
Capital employed	in € mill.	552.9	461.2	-17
Ø Employees		1,147	1,143	0
Sales volumes facing bricks	in mill. WF	142	126	-11

1) Adjusted for non-recurring income and expenses

Investments and Other

The Investments and Other segment comprises the corporate headquarters and related costs, brick activities in India and the Group's non-core investments, including the 50/50 Pipelife joint venture (consolidated at equity and therefore not included in operating results). Tondach Gleinstätten was also consolidated at equity during the first half-year and the respective contribution to earnings is included in this segment. Following an increase in this investment to 50%, Tondach Gleinstätten will be proportionately consolidated as of June 30 and will be included in the Central-East Europe segment beginning with the third quarter of 2011. The Steinzeug Group, the world market leader in ceramic pipe systems, was fully consolidated as of January 1, 2011. As expected, Steinzeug recorded a moderate improvement in operating results over the comparable prior year period.

In the first half of 2011 segment revenues rose from € 5.3 million to € 53.1 million and operating EBITDA improved from € -11.2 million to € -3.9, largely due to the earnings contribution provided by the Steinzeug Group. From EuroCeramic, a company acquired by Steinzeug in July 2011, no significant contribution to earnings is expected this year due to integration costs. The Pipelife Group met expectations with positive development in the first half of 2011. Revenues increased 15% and above all due to the successful focus on innovative products as well as cost savings from the restructuring program operating EBITDA rose by 29% year-on-year. For the full year, we expect an improvement in revenues and earnings at Pipelife, whereby this growth will also be supported by the initial consolidation of the plastic pipe division of the French Alphacan, which was acquired in April 2011.

Investments and Other 1)		1-6/2010	1-6/2011	Chg. in %
Revenues	in € mill.	5.3	53.1	>100
Operating EBITDA 2)	in € mill.	-11.2	-3.9	+65
Operating EBIT 2)	in € mill.	-14.0	-9.2	+34
Total investments	in € mill.	0.3	1.5	>100
Capital employed	in € mill.	46.0	84.1	+83
Ø Employees		242	694	>100

1) Revenues excluding Group eliminations, earnings including holding company costs; the East European holding companies are reported under the Investments and Other segment beginning in 2011 (previously: Central-East Europe); comparable figures from the prior year period were adjusted accordingly

2) Adjusted for non-recurring income and expenses

Initial consolidation of Steinzeug Group at the beginning of 2011

Pipelife increases revenues by 15% and operating EBITDA by 29% in first half-year

in TEUR	4-6/2011	4-6/2010	1-6/2011	1-6/2010
Revenues	590,659	546,051	985,745	825,567
Cost of goods sold	-374,404	-359,627	-670,335	-599,008
Gross profit	216,255	186,424	315,410	226,559
Selling expenses	-124,075	-109,010	-223,381	-191,024
Administrative expenses	-33,222	-31,738	-65,659	-60,638
Other operating expenses	-12,478	-11,109	-25,525	-21,695
Other operating income	16,894	18,238	26,238	30,128
Profit/loss before deconsolidation result	63,374	52,805	27,083	-16,670
Deconsolidation result	33,213	0	33,213	0
Profit/loss after deconsolidation result	96,587	52,805	60,296	-16,670
Income from investments in associates	5,061	-600	1,095	-1,484
Interest and similar income	2,216	5,423	4,697	8,512
Interest and similar expenses	-10,703	-20,171	-22,698	-32,104
Other financial results	850	-3,568	2,456	-3,485
Financial results	-2,576	-18,916	-14,450	-28,561
Profit/loss before tax	94,011	33,889	45,846	-45,231
Income taxes	-11,416	-4,211	-8,328	5,871
Profit/loss after tax	82,595	29,678	37,518	-39,360
Thereof attributable to non-controlling interests	210	964	-287	-1,440
Thereof attributable to hybrid capital holders	8,102	8,102	16,116	16,116
Thereof attributable to equity holders	74,283	20,612	21,689	-54,036
Earnings per share (in EUR)	0.63	0.18	0.18	-0.46
Diluted earnings per share (in EUR)	0.63	0.18	0.18	-0.46

		1-6/2011			1-6/2010
in TEUR	Group	Non-controlling interests	Total	Group	Non-controlling interests	Total
Profit/loss after tax	37,805	-287	37,518	-37,920	-1,440	-39,360
Foreign exchange adjustments	-48,070	6	-48,064	121,070	-131	120,939
Foreign exchange adjustments to investments in associates	-877	0	-877	2,672	0	2,672
Changes in the fair value of available-for-sale financial instruments	542	0	542	-113	0	-113
Changes in hedging reserves	-3,784	0	-3,784	-26,767	0	-26,767
Other comprehensive income 1)	-52,189	6	-52,183	96,862	-131	96,731
Total comprehensive income	-14,384	-281	-14,665	58,942	-1,571	57,371
Thereof share planned for hybrid capital holders	16,116			16,116
Thereof comprehensive income attributable to equity holders	-30,500			42,826

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

in TEUR	30.6.2011	31.12.2010
Assets
Intangible assets and goodwill	663,343	676,304
Property, plant and equipment	1,883,828	1,872,214
Investment property	62,805	58,231
Investments in associates	97,647	114,909
Other financial assets	6,318	5,715
Deferred tax assets	33,672	32,246
Non-current assets	2,747,613	2,759,619
Inventories	594,588	569,646
Trade receivables	215,515	87,366
Other current receivables	107,025	102,928
Securities and other financial assets	65,185	86,304
Cash and cash equivalents	365,355	453,403
Current assets	1,347,668	1,299,647
Total Assets	4,095,281	4,059,266
Equity and Liabilities
Issued capital	117,527	117,527
Share premium	1,085,605	1,085,605
Hybrid capital	492,896	492,896
Retained earnings	937,433	943,869
Other reserves	-167,966	-115,777
Treasury stock	-3,568	-3,568
Controlling interests	2,461,927	2,520,552
Non-controlling interests	4,842	5,123
Equity	2,466,769	2,525,675
Employee-related provisions	70,118	73,001
Deferred taxes	87,727	79,778
Other non-current provisions	69,303	68,507
Long-term financial liabilities	480,751	775,308
Other non-current liabilities	25,476	22,278
Non-current provisions and liabilities	733,375	1,018,872
Other current provisions	51,488	63,245
Short-term financial liabilities	479,745	138,892
Trade payables	194,544	180,974
Other current liabilities	169,360	131,608
Current provisions and liabilities	895,137	514,719
Total Equity and Liabilities	4,095,281	4,059,266

	2011			2010
in TEUR	Group	Non-controlling interests	Total	Group	Non-controlling interests	Total
Balance on 1.1.	2,520,552	5,123	2,525,675	2,522,616	24,416	2,547,032
Total comprehensive income	-14,384	-281	-14,665	58,942	-1,571	57,371
Dividend payments/hybrid coupon	-44,241	0	-44,241	-32,500	0	-32,500
Capital increase/decrease	0	0	0	0	0	0
Increase/decrease in non-controlling interests	0	0	0	0	0	0
Increase/decrease in treasury stock	0	0	0	0	0	0
Balance on 30.6.	2,461,927	4,842	2,466,769	2,549,058	22,845	2,571,903

in TEUR	1-6/2011	1-6/2010
Profit/loss before tax	45,846	-45,231
Depreciation and amortization	96,325	95,005
Impairment of assets	0	0
Write-ups of fixed and financial assets	-2	0
Increase/decrease in long-term provisions	4,898	12,932
Income from investments in associates	-1,095	1,484
Gain/loss from the disposal of fixed and financial assets	-35,552	-4,011
Interest results	18,001	23,592
Interest paid	-17,279	-32,360
Interest received	4,168	6,007
Income taxes paid	-7,700	6,269
Gross cash flow	107,610	63,687
Increase/decrease in inventories	-2,664	-11,166
Increase/decrease in trade receivables	-124,133	-81,873
Increase/decrease in trade payables	7,491	23,025
Increase/decrease in other net current assets	11,938	12,323
Changes in non-cash items resulting from foreign exchange translation	-11,031	5,951
Cash flow from operating activities	-10,789	11,947
Proceeds from the sale of assets (including financial assets)	3,892	5,188
Purchase of property, plant and equipment and intangible assets	-48,313	-37,584
Payments made for investments in financial assets	-328	-313
Increase/decrease in securities and other financial assets	22,719	-17,820
Net payments made for the acquisition of companies	-18,600	-2,650
Net proceeds from the sale of companies	43,428	0
Cash flow from investing activities	2,798	-53,179
Increase/decrease in long-term financial liabilities	-334,694	-20,282
Increase/decrease in short-term financial liabilities	299,315	-29,463
Dividends paid by Wienerberger AG	-11,741	0
Hybrid coupon paid	-32,500	-32,500
Dividend payments from associates	0	0
Cash flow from financing activities	-79,620	-82,245
Change in cash and cash equivalents	-87,611	-123,477
Effects of exchange rate fluctuations on cash held	-437	2,998
Cash and cash equivalents at the beginning of the year	453,403	449,612
Cash and cash equivalents at the end of the year	365,355	329,133

1-6/2011 in TEUR	Central-East Europe 2)	Central-West Europe 3)	North-West Europe 3)	North America	Investments and Other 2) 4)	Reconciliation 5)	Wienerberger Group
Third party revenues	271,118	195,800	410,430	61,650	45,785		984,783
Inter-company revenues	1,595	11,506	5,605	0	7,351	-25,095	962
Total revenues	272,713	207,306	416,035	61,650	53,136	-25,095	985,745
Operating EBITDA 1)	44,406	17,483	70,730	-5,263	-3,948		123,408
Operating EBIT 1)	12,655	2,085	37,794	-16,255	-9,196		27,083
Deconsolidation result	0	0	0	0	33,213		33,213
Total investments	22,679	14,497	25,610	2,894	1,561		67,241
Capital employed	862,001	370,277	1,115,175	461,172	84,135		2,892,760
Ø Employees	4,247	2,022	4,197	1,143	694		12,303
1-6/2010
Third party revenues	232,164	164,810	355,812	71,535	833		825,154
Inter-company revenues	1,107	8,807	5,974	0	4,513	-19,988	413
Total revenues	233,271	173,617	361,786	71,535	5,346	-19,988	825,567
Operating EBITDA 1)	30,633	9,724	49,738	-533	-11,227		78,335

Operating EBIT 1) -1,363 -6,590 17,470 -12,223 -13,964 -16,670 Deconsolidation result 0 0 0 0 0 0 Total investments 11,112 8,806 17,323 2,961 345 40,547 Capital employed 796,073 362,174 1,159,633 552,876 46,029 2,916,785 Ø Employees 4,498 1,999 3,993 1,147 242 11,879

1) Adjusted for deconsolidation results

2) The East European holding companies are reported under the Investments and Other segment beginning in 2011 (previously: Central-East Europe);

comparable figures from the prior year period were adjusted accordingly.

3) The cross border trading activities of the Netherlands and Germany are reported under North-West Europe beginning in 2011 (previously: Central-West Europe);

comparable figures from the prior year period were adjusted accordingly.

4) The Investments and Other segment includes holding company costs as well as brick activities in India and pipe systems.

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

Basis of Preparation

The interim report as of June 30, 2011 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, 2010 remain unchanged. For additional information on the accounting and valuation principles, see the financial statements as of December 31, 2010, 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. The Schlagmann Group joint venture is consolidated on a proportionate basis at 50%.

The Steinzeug Group, which was acquired at the end of December 2010, was initially consolidated as of January 1, 2011 based on preliminary values. Dryfix GmbH, which was previously reported under other financial assets, was also initially consolidated as of January 1, 2011. As of April 1, 2011 Kerafin NV, Belgium, which was acquired at the end of March together with its subsidiary Steenfabriek Heylen NV, Belgium, was included in the consolidated financial statements on the basis of preliminary values.

In June Wienerberger received the approval of the responsible cartel authorities for the takeover of a further 25% stake in Tondach Gleinstätten as part of an equity swap with the now former joint venture partner Monier. Tondach Gleinstätten was initially consolidated at 50% (previously at equity) as of June 30, 2011 based on preliminary values. The Bramac Group was deconsolidated as of June 30, 2011. The results of the Bramac Group are included in the consolidated financial statements for the first half of 2011 on a proportionate basis at 50%.

Changes in the consolidation range increased revenues by TEUR 45,462 and operating EBITDA by TEUR 5,954 for the period from January 1, 2011 to June 30, 2011.

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, 2011. The proportionate share of the accrued coupon interest for the first six months of 2011 equaled TEUR 16,116; this amount was reflected in the calculation of earnings per share and led to a reduction of EUR 0.14 in this ratio.

Notes to the Income Statement

Group revenues rose by 19% over the comparable prior year period to TEUR 985,745 (2010: TEUR 825,567) for the first six months of 2011. Operating EBITDA amounted to TEUR 123,408, or TEUR 45,073 higher than the TEUR 78,335 recorded in the first half of 2010.

Operating profit before deconsolidation result totaled TEUR 27,083, compared with TEUR -16,670 in 2010. Deconsolidation result from the sale of the Bramac Group equaled TEUR 33,213. The number of shares outstanding as of June 30, 2011 was 117,526,764.

Wienerberger held 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, 2011 to June 30, 2011 was 117,413,161.

Notes to the Statement of Comprehensive Income

Negative foreign exchange adjustments of TEUR 48,941 recognized directly in equity during the first six months of 2011 (2010: TEUR 123,611) resulted above all from the US dollar and the British pound and were offset only slightly by positive effects from East European currencies. The hedging reserves reduced equity by TEUR 3,784 after tax during the reporting period (2010: TEUR -26,767). This decline resulted from a negative change in the market value of net investment hedges. Changes in the fair value of available-for-sale securities totaled TEUR 542 (2010: TEUR -113). Profit after tax increased equity by TEUR 37,518 for the first six months (2010: TEUR -39,360). Total comprehensive income after tax decreased equity by TEUR 14,665 (2010: TEUR 57,371).

Notes to the Cash Flow Statement

Gross cash flow clearly exceeded the prior year at TEUR 107,610 (2010: TEUR 63,687) due to a market- and weatherrelated increase in volumes. Cash outflows of TEUR 67,241 (2010: TEUR 40,547) for investments in non-current assets (incl. financial assets) and acquisitions included TEUR 41,043 (2010: TEUR 21,653) of maintenance, replacement and rationalization investments (maintenance capex) and TEUR 26,198 (2010: TEUR 18,894) for acquisitions and the construction or expansion of plants (growth investments). The sale of the Bramac Group resulted in net cash inflows of TEUR 43,428.

Notes to the Balance Sheet

Maintenance capex and growth investments for the first six months of 2011 increased non-current assets by TEUR 48,313 (2010: TEUR 37,584). Net debt rose by TEUR 155,463 over the level at December 31, 2010 to TEUR 529,956 due to a seasonal increase in working capital and to the acquisition of Tondach Gleinstätten. In the first half of the reporting year, Wienerberger repurchased TEUR 18,000 of the bond issued in 2005. This buyback and the bond certificates repurchased during the previous year reduced the refinancing requirements for the 2005 bond to only TEUR 241,228 in 2012. Due to the maturity of the bond and a loan in the second quarter of 2012, the term structure of financial liabilities changed during the reporting period.

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 six months of 2011 were higher input costs as well as reserved recovery of the construction industry in individual markets and the resulting 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. 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 long-term supply contracts. The risks associated with higher energy costs are reduced through the Group's hedging strategy. The risks expected by Wienerberger during the remaining six 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.

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. In India, Wienerberger is exposed to a risk that previously granted reductions in customs duties may be subsequently disallowed if the related conditions cannot be met. 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 the end of 2011. It should be noted that price-fixing agreements are not part of Wienerberger business policies; internal guidelines prohibit such practices and call for sanctions in the event of violations.

Significant Events after the Balance Sheet Date

At the end of June Wienerberger AG placed a new bond with a volume of TEUR 100,000. This instrument was recognized as a financial liability on July 4, 2011. The new bond has a seven-year term (due on July 4, 2018), a denomination of EUR 1,000 and a fixed coupon of 5.25%. The bond was issued to refinance financial liabilities that were scheduled to mature in 2012.

Steinzeug Abwassersysteme GmbH took over the Dutch-German EuroCeramic at the end of July. EuroCeramic operates one plant in the Netherlands and generated revenues of approx. TEUR 21,000 with roughly 100 employees in 2010. The parties have agreed not to disclose any information on the price for this transaction.

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.

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 7,381 as of June 30, 2011 (2010: TEUR 9,063). The comparable amounts for non-consolidated subsidiaries and joint ventures were TEUR 7,624 (2010: TEUR 7,733) and TEUR 6,725 (2010: TEUR 5,152), respectively. Transactions between companies included in the consolidated financial statements and companies controlled by a member of the Supervisory Board of Wienerberger AG are related primarily to clay deliveries of TEUR 107 (2010: TEUR 53), rentals of TEUR 1,289 (2010: TEUR 714) and license payments of TEUR 2,755 (2010: TEUR 2,454) for the use of brand names.

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 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 important events that have occurred during the first six months of the financial year and their impact on the interim financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.

The Managing Board of Wienerberger AG Vienna, August 16, 2011

Heimo Scheuch Willy Van Riet Johann Windisch

Chief Executive Officer Chief Financial Officer Chief Operating Officer

Financial Calendar

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
November 24/25, 2011	Capital Markets Day 2011 in Switzerland
January 31, 2012	Start of the quiet period
February 21, 2012	Results for 2011 Press and Analysts Conference in Vienna
February 22, 2012	Analysts Conference in London
March 29, 2012	Publication of the 2011 Annual Report on the Wienerberger website
April 19, 2012	Start of the quiet period
May 9, 2012	First Quarter Results for 2012
May 11, 2012	143nd Annual General Meeting in the Austria Center Vienna
July 31, 2012	Start of the quiet period
August 21, 2012	Results for the First Six Months of 2012 Press and Analysts Conference in Vienna
August 22, 2012	Analysts Conference in London
October 23, 2012	Start of the quiet period
November 13, 2012	Third Quarter Results for 2012

Information on the Company and the Wienerberger Share

Head of Investor Relations	Barbara Braunöck
Shareholders' Telephone	+43 1 601 92 471
E-Mail	communication@wienerberger.com
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 2010: http://annualreport.wienerberger.com

Plant Sites and Market Positions

Wienerberger is the only multinational producer of bricks and roof tiles, with a total of 204 plants in 27 countries and five export markets, including the newly opened plant in India. We operate 30 plants for the production of pipe systems. 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.

Facing bricks Market positions Facing bricks Concrete products Distribution outlets 1 Number of sites Wisconsin Tennessee Virginia New Jersey New York Mississippi Florida North Carolina Pennsylvania Illinois Alabama Kentucky Indiana South Carolina Michigan Ohio West Virginia Georgia 2 1 Delaware Maryland 2 Ontario 1 Quebec ¹ 1 1 1 2 Montana Nebraska Wyoming ^{2 1} 1 Colorado ^{2 1 1} Oklahoma ¹ 1 Utah Arkansas 4 1 1 ^{3 2} 2 3 7 2 1 5 2 3 2 3 3 1 1 1 1 ^{6 4} 4 1 4 1 3 2 1 1 6 1 1 6 2 5 1 Pipelife (50%) Number of plants 1

Wienerberger Markets in North America

^{3 2}

1

1

Wienerberger Markets in Europe