Wienerberger Strategy 2023: Strong Foundations for Sustainable Growth
- Potential for significant further growth, leveraging our innovative, diversified and resilient business model
- Strong committment to ESG with a 15% reduction in CO2e emissions vs. 2020 as one of the ambitious sustainability targets to be achieved by 2023
- EBITDA LFL 2020 expected to reach upper end of € 480-500 million guidance
- EBITDA enhancement of € 135 million expected by 2023 from operational excellence and investments in innovation, digitalization and sustainability
Wienerberger Group is today hosting a Capital Markets Day and presenting its strategy for the period to 2023 and beyond. The company continues to be committed to sustainable and value-creating growth across all three of its Business Units. Wienerberger’s key focus is on further strengthening its leading position as a provider of innovative and digital systems for the entire building envelope and for infrastructure; adding new fields of business; and the achievement of ambitious sustainability targets in alignment with the EU Green Deal.
Over the past ten years, we have repositioned Wienerberger on a completely new basis. Today, we are a leading provider of innovative system solutions, offering a broad portfolio of products and services in diversified end markets. Thanks to our consistent focus on performance enhancement, we have succeeded in significantly increasing our profitability. Our strong performance during the Covid-19 crisis has underlined our significantly enhanced business resilience. Looking forward, we are taking advantage of our strength in order to actively shape the future of our sector and to secure our role as a leader in innovation and sustainability, creating significant value for our shareholders.
By 2023, Wienerberger will generate an additional € 135 million of EBITDA
To attain its strategic targets by 2023, Wienerberger continues to rely on four enablers: Operational Excellence, innovation and digitalization, sustainability, and value-creating acquisitions and portfolio optimization. Strategic investments in the areas of Operational Excellence, innovation, digitalization and sustainability are expected to contribute incremental EBITDA of approximately € 135 million by 2023*. This excludes any considerations regarding market growth/recovery and additional upside from M&A.
Sustainability and innovation as growth drivers
Wienerberger sees significant potential to benefit from the structural trends impacting its core markets. Continental Europe, the UK and the USA urgently need investments in infrastructure, residential construction and renovation. From Wienerberger’s perspective, the shortage of skilled labor and the growing importance of healthy living have the potential to drive significant growth for our business. The digitalization of processes and the use of prefabricated solutions result in efficiency enhancements on the construction site and savings of valuable resources. In the field of infrastructure, the impact of climate change on water management and the conversion of the energy sector to renewable sources of energy will support Wienerberger’s growth in the Piping Solutions segment. The economic stimulus programs adopted to overcome the Covid-19 crisis and the Green Deal of the European Union will further support our growth in the mid- and long-term.
New sustainability targets: 15% reduction in CO2e emissions by 2023
EBITDA LFL for 2020 expected to reach upper range of guidance
Wienerberger’s performance in Q3 was better than expected due to price increases to offset cost inflation and positive impact of performance enhancement measures. These effects mostly offset volume declines, especially in Wienerberger’s Building Solutions end markets in Europe. Wienerberger therefore expects to reach the upper range of its EBITDA LFL guidance of € 480-500 million.
Developments in recent months have confirmed the strength of our Group. With our Strategy 2023, we are now moving forward, building on this strong foundation. We are therefore very well positioned to grow organically and further advance our pioneering role by offering sustainable and smart solutions to the construction industry. At the same time, we will take advantage of opportunities for acquisitions and thus play an active role in the consolidation of our industry.
The capital markets day will be streamed at 2pm CET. The whole presentation material and link can be accessed at: https://www.wienerberger.com/en/info/capital-markets-day.html
*Note: € 135 million EBITDA contribution include € 20 million from remaining Fast Forward program