Wienerberger Strategy: On Course for Growth
Our focus is on organic growth, operational excellence and establishing a strong portfolio. Read more about Wienerberger’s strategies and targets.
We are improving people’s quality of life with our products and solutions every single day. We have a clear vision. We want to be the most prestigious provider of building materials and infrastructure solutions and the best employer in our market. To achieve this, we are taking advantage of the potential for long-term growth in the Wienerberger Group and are improving the company’s value from an economic, social and environmental standpoint.
Our strategy at Wienerberger
The Wienerberger Strategy focuses on three key points: organic growth, operational excellence, as well as growth investments, and establishing a strong portfolio. Learn what this means in more detail:
We are building on our organic growth
- Innovation: As the leading innovator in the building materials industry, we are continuously improving our products and system solutions. Some of the key points we are focusing on are new ways to manipulate and use materials, using modern materials and production processes, using raw materials in a way that conserves resources and reusing our products after they have served their initial purpose.
- Proximity Marketing: The demand for construction projects is increasing while designing and executing them is becoming increasingly complex. This is why we tailor our approach to the needs of each customer, stakeholder and decision maker in the process. We offer them in-depth advice and extensive services and follow projects from the start right through to the end.
- Digitalisation: Wienerberger is a pioneer in shaping the digital revolution in the building materials industry. In this way, we are creating more value for our customers and partners all along the supply chain. Some examples of this include embedding digital networks in building designs or using cutting-edge technology in the production process, such as 3D printing.
We live and breathe operational excellence
Reduce costs and ensure uniform standards - that is our goal. The Fast Forward 2020 Program provides the framework for all our measures aimed at enhancing efficiency and increasing our profitability. Across the Group, we are concentrating our efforts on six clearly defined work streams to increase EBITDA by € 100 million over the period from 2019 to 2020:
- Manufacturing excellence
- Commercial excellence
- Supply chain management
- Turnaround cases
We are committed to growth projects and optimising our portfolio
We are complementing Wienerberger’s organic growth with additional, value-adding growth projects. As a result, we are exploring new products and are building up Wienerberger’s presence in the existing market. We are buying more companies, taking over individual factories and increasing our capacity. To do this, we are adhering to strict financial targets. We regularly review all areas of the business in order to ensure sustainable growth. More growth can be generated by selling non-strategic divisions of the business.
“The strategic focus on innovation, proximity marketing and digitalization is an important cornerstone of Wienerberger’s success on the world market. This is fundamental to our growth, together with our international network of production sites.”
We want to take advantage of Wienerberger’s potential for growth and to boost the company’s value in the long-term. We have set ourselves clear targets in the Wienerberger Strategy to help us achieve this:
Financial targets: continue to perform strongly
- EBITDA target: In 2019, we want to increase the Group's adjusted EBITDA to between € 560 to € 580 million.
- Net debt: We aim to have a net debt (net debt/EBITDA) of below 2.5 years by the end of this year. If the upside potential convinces us to increase growth investment, this threshold may be allowed to increase to 3.0 years in the short term.
- Dividends: We are planning a dividend pay-out of 10 to 30% from our free cash flow to Hybridkupon. The dividend will depend on from the business’ growth, economic forecasts and potential growth projects.
Non-financial targets: the sustainability roadmap 2020
The Sustainability Roadmap 2020 specifies the targets to ensure the sustainable performance of Wienerberger. It covers the areas of employees, production and social responsibility. We have established appropriate qualitative and quantitative goals based on a materiality analysis.