- New capital distribution policy provides for distribution of 20-40% of free cash flow to shareholders
- Balance sheet remains strong, providing headroom for enhanced capital returns and strategic growth projects
- Implementation of value-creating growth strategy fully on track
- Plans for further optimization of financing costs
- Outlook for 2019 confirmed
On the occasion of its Capital Markets Day, the Wienerberger Group, a leading international supplier of innovative solutions for the building envelope and smart infrastructure, announces a new capital distribution policy. The company intends to distribute 20-40% of the free cash flow to its shareholders in the form of dividends and share buybacks. Moreover, Wienerberger provides an update on the implementation of its value-creating growth strategy and confirms its outlook for EBITDA like-for-like for 2019 within a range of € 570-580 million. Wienerberger has made significant progress in implementing its Fast Forward program of performance enhancement measures and is therefore fully on track to achieve its target of a contribution to earnings of € 120 million in the period from 2018 to 2020.
To date, Wienerberger’s distribution policy has been 10-30% of the free cash flow after deduction of the costs of hybrid capital. In the future, 20-40% of the free cash flow of the respective business year are to be distributed to the shareholders.
We are experiencing profitable growth and have most recently generated the best half-year result in the 200-year history of our company. We want our shareholders to benefit more strongly from this successful performance
In implementing its corporate strategy, Wienerberger continues to focus on value-creating growth projects. Currently, the company is looking into attractive M&A projects with a view to broadening its offer of innovative products and services and strengthening its market presence. With its strong balance sheet, the Group has the necessary financial headroom for such strategic growth steps.
In terms of organic growth, Wienerberger is making strong progress in transforming its product and service portfolio. The company’s objective is to further increase the percentage of premium products and smart solutions and to play a major role as an innovation leader in the digital transformation of the construction and infrastructure sectors. Wienerberger intends to explore growth opportunities in adjacent and new products to double its revenue share of the total value of the building envelope to 10% over the medium-term.
Moreover, Wienerberger specifies its CAPEX guidance on the occasion of the Capital Markets Day. Recurring maintenance investments are to be within a range of € 120 to 140 million on a sustainable basis, with investments of € 135 million anticipated for 2019. Discretionary growth investments aimed at strengthening the company’s performance and supporting its strategic development will come to approximately € 120 million, including investments in capacity expansion, optimization and digitalization projects, as well as research and development.
Wienerberger’s growth strategy is being implemented on the basis of strict financial discipline. Wienerberger will capitalize on the refinancing of a corporate bond maturing in 2020 and the call option for the hybrid bond in 2021 to further optimize the Group’s financing costs.