North-West Europe

Markets | Products | Strategy | Outlook

Bert Jan Koekoek, Executive Managing Director North-West Europe

December 2, 2010

Content

Key markets in North-West Europe

Wienerberger markets 2011+
Wienerberger product strategy
Conclusions, outlook and mid-term strategy

Key Markets in North-West Europe

Wienerberger North-West Europe

(Belgium, Netherlands, France, UK, Scandinavia)
1

Key facts

Revenues 550.8 mn (-2%)

EBITDA 86.5 mn (+1%)
Average # of employees 4,012 (-2%)

33

Efficient and modern plant network:

1
1

11
1

- 14 clay block plants

- 36 facing brick plants
- 12 clay roof tile plants
- 5 clay paver plants

2 1

1
1

1
4

1
1 1

1
1
1

Wienerberger plants

Note: key facts as of 30/9/2010

Market positions with

clay blocks and / or facing bricks

Housing Markets in North-West Europe more

Stable During the Crisis

Mature and more stable housing markets in North-West Europe

RMI (> 50% of roof tile sales) more resilient
More stable revenue and earnings development in the region
Development of Revenues (in %)
110

100

90

North-West Europe

80

Wienerberger Group
70
2007

2008

2009

2010e

Wienerberger Markets 2011+

Revenue Split by Country in North-West Europe

Revenues NWE: 550.8 mn
Scandinavia
4%
UK
21%

Belgium
30%

France
20%
Netherlands
25%

Note: figures show revenues 1-9/2010

7

Belgium Sound Economic Base

% GDP

12%

% CPI

Macro

% Unemployment

10%
8%

Short term

6%

Saving measures vs high government debt ( 22 bn until 2015)

4%

Rising consumer confidence despite growing unemployment

2%
0%

Sound base compared to other EU countries

-2%
-4%

2006

2007

2008

2009

2010

2011f

Long term

2012f

-6%

2 to 3 years low economic growth figure | reduction government spending

-8%

Structural labor shortage

Single Family
60

58

54

housing starts in 1,000

48
45

42
32

Mortgage interest rate 6,0%

Multi Family

44

30
26
22

30

38

38

21

20

22

Housing

5,0%

Short term

4,0%

Strong increase in individual housing permits

3,0%

6% tax for new built canceled | increase in tax on property

Renovation outperforms new built

2,0%
15

Long term
26

24

22

20

22

17

18

1,0%
0,0%

2006

2007

2008

Source: Euroconstruct, June 2010

2009

2010e

2011f

2012f

Population growth 11% by 2035

Shortage of labor force
Energy efficiency (roof, windows, wall, solar)
8

For 2011 we are More Optimistic for Belgium

than Euroconstruct

Top line growth expected, mainly driven by:

- stronger individual building activities
- sound renovation market
- introduction of plane ground blocks
- further development of Wienerberger building systems

Earnings and EBITDA margin growth expected, mainly driven by:

- better capacity utilization
- improved cost structures (plant network, product portfolio)
- price adjustments in line with cost inflation

Netherlands: Potential for Slight Improvements

% GDP

8%

% CPI

Macro

% Unemployment

6%
4%

Short term

2%

Very slow GDP growth expected -> based on exports

0%

Consumer confidence remains under pressure

-2%

Long term
2006

-4%

2007

2008

2009

2010e

2011f

2012f

Cost cutting by national government (until 2015)

-6%
-8%

Housing
Single Family

housing completions in 1,000

90
75

81

79

83
5,0%

72
31

60

Mortgage interest rate 6,0%

Multi Family

25

31

35

45

62

64

65

24

25

25

38

39

40

4,0%
3,0%
2,0%

30

47

50

48

48

15
0

2007

2008

2009

2010e

2011f

2012f

Slight recovery expected in 2011 and 2012 from low level

Energy performance coefficient:
- 2011 from 0.8 to 0.6
- 2015 from 0.6 to 0.4
Smaller sized building projects
Long term

1,0%
0,0%

2006

Short term

After 2012, sustainable recovery expected

Finance model housing corporations to be questioned

Source: Euroconstruct, June 2010

10

Cautiously Optimistic for our Dutch Operations

in 2011

Stable revenue development expected, based on:

- slight improvement in housing markets, but
- cuts in government spending (pavers | non-residential construction)
- low consumer confidence

Earnings improvement expected, driven by:

- strengthening of high quality products (glued blocks, large-format roof tiles,
etc.)

- strengthening of prefabricated wall systems and building solutions

- slightly better capacity utilization
- improved cost structures (plant network, product portfolio)
- prices in line with cost inflation
11

France Offers High Long-term Potential

% GDP

12%

% CPI

Macro

% Unemployment

10%

Positive demographic development

8%
6%

Growth rate strongly depending on domestic consumption

4%

Ongoing governmental reforms to decrease debt (risk of

inflation and increase in mortgage rates)

2%
0%
-2%
-4%

2006

2007

2008

2009

2010e

2011f

2012f

-6%
-8%

Housing
500
450

Single Family

445

452

housing starts in 1,000

5,0%

386

400
350

Mortgage interest rate 6,0%

Multi Family

205

323

215

300

350

330

330

160

155

4,0%

250

150

3,0%

200
2,0%

150
100

240

237

206

Low housing stock could trigger construction activity

Backlog demand of social housing

180
170

Euroconstruct expects a slightly weaker housing market in 2011 but

an increasing number of mortgage loans

173

180

170

175

2009

210e

2011f

2012f

Long-term need of 400,000 housing units due to population growth,

elevated birth rate, increase in divorces, secondary residences,
migration to the South and West

1,0%

50
0

0,0%

2006

2007

2008

Source: Euroconstruct, June 2010

12

French Operations Expected to Grow in 2011

Top line growth expected, mainly driven by:
- volume growth in clay blocks and roof tiles:
- Accelerated process of gaining market shares with clay blocks vs. concrete
- Full market coverage with our new block capacities (Durtal) optimized logistics
- Launch and enforcement of premium products (high thermal insulated blocks,
larger roof tile formats)

- Benefit from sound renovation market (roof tiles)

Earnings and EBITDA margin improvement expected, mainly driven by:

- favorable cost structure of modern clay plant network
- improved capacity utilization
- price adjustments in line with cost inflation
13

Scandinavia
Current Situation and Outlook 2011

Continued population and household growth

Growth is based on private consumption and exports
Growth in revenues and earnings expected

14

Wienerberger Product Strategy

Important Steps Have Been Taken in all

Product Groups During the Crisis
Revenue Split NWE
by Product

Clay blocks market position

Surface
7%

strengthened

Facing bricks foundation for

margin improvement laid

Roof tiles position expanded

Wall
20%

Roof
33%

into UK | system provider

Facade
40%

Note: figures show revenues 1-9/2010

16

Clay Blocks: Market Position Strengthened

9 Modern and efficient plant network in North-West Europe

9 Optimization of plant network in Belgium
9 New capacities in France
- Clay blocks are gaining further market share vs concrete
- High share of premium products (plane ground blocks)

Strong operational base for further growth

17

Facing Bricks: Important Steps for Margin

Improvement Taken

9 Streamlining of administration and sales

(completed by end of 2010)

9 Streamlining of product portfolio without compromising the product

range (-20% of products at the end of 2010 vs. target of -15%)
- Fewer products per plant

- Less scrap in production process

- Lower working capital

3.000

2,750

2.500
2.000

-20%
2,200

1.500
1.000
500
0

2009

2010e

By far the broadest, most innovative product portfolio in Europe

18

Roof Tiles: Sound Development

9 Benefit from sound renovation markets

(> 50% of our roof tile sales go into renovation)

9 Good development of roof tile business in the UK

9 Positioning as a system provider
- Strong growth of technical roof accessories in North-West European markets

Roofing systems and RMI markets as growth drivers

19

Roofs are of Key Importance for the Energy

Efficiency of a Building

20

10

Trends in the Markets are Similar

The building environment is changing from product based to system based

Tighter building site due to urbanization

Scarce labour
Limited access to building site both timing and number of trucks
Changes in the building concept triggered by:
- European laws on energy usage reduction drives energy efficient building
solutions

- Life time costs approach vs. investments costs approach of a building

Speed and costs of construction gaining importance (bigger construction

firms change into developers)

RMI market gaining importance (improve energy efficiency of buildings)

21

But the Route to Each Market is Different

Each market has its own characteristics in terms of

customers and decision makers:
- Belgium: B2C market
- Netherlands, France and UK: B2B markets

Opportunity to integrate vertically in the building column

and generate more EBITDA per unit of measurement

Municipality
Housing Co.

Developer

Constr.
Engineer

Architect

Builder

Opportunity to take the lead in the decision-making

process

Merchant

End
consumer

Grow business by customized solutions for decision makers

22

11

Showroom Concept Very Successful in Belgium

Provide individual, technical & aesthetical

support to all decision makers

More than 11,000 visits a year

# of visits steadily increasing

23

Customized Products and System Solutions

Customized innovative products (e.g. KoraTech)

Customized system solutions for our product groups
- Clay blocks: prefabricated wall system (PWS)
- Facing bricks:
- Prefabricated facing brick elements
- Prefabricated cavity wall systems
- Concepts for facade renovation: ETICS | ArGeTon | Corium

- Roof tiles: cladding system with roof tiles

Customized building solutions: the Zero Energy house

24

12

PWS Customized Wall Elements

Wienerberger offers in Belgium prefabricated wall
systems (PWS) customized for your new home:
Time savings by delivery of finished wall elements
- Faster construction of exterior walls

Easy to handle
- No skilled brick layers required

High quality product

- Customized elements
- Standardized and controlled manufacturing process

25

Porotherm Wall System at a Glance

Target: >1,000 houses in Belgium for 2011 (>50% growth vs. 2010)
Based on in-house developed design software
- Inner wall and facade integrated

Small investments planned in Belgium to further develop this

market segment

Opportunity: combined delivery with facade system

26

13

Prefabricated Inner Wall System

New built

27

Terca Wall System at a Glance

Bricks sourced from Belgian factories

- Market testing with 125 houses
- Based on same design software used for PWS

Evaluation of market potential by construction of another 350

houses in 2011

Next step towards more automated production

28

14

Prefabricated Facing Bricks Elements

New built

29

Prefabricated Cavity Wall System

New built

30

15

Facade:
External Thermal Insulation Composite System
Insulation with our brick slip cladding

31

Facade: ArGeTon

32

16

Facade: Corium System

after renovation

before renovation

33

Roof: Cladding System with Roof Tiles

34

17

Wienerberger Zero Energy House

(Developed with Strategic Partners)

35

Conclusions, Outlook and Mid-term Strategy

18

North-West Europe: Outlook for 2011

Housing starts

Revenues

Earnings

Belgium
Netherlands
France
UK
Scandinavia
North-West Europe

37

Benefit from Strong Operational Base and

Customized Innovative Products in the Mid-term

No market has been overbuilt in the past

Strong operational base in all product groups
Spare capacity of 25 - 30% in all product groups
Renovation market as a growth driver in roof tiles
Selective and limited investments if opportunities arise to further
consolidate the market

38

19

Mid-term Strategy for North-West Europe

Revenue growth and margin improvements by:

- operational leverage in all product groups (spare capacity)
- increase share of high quality and innovative products in clay blocks / roof tiles
- increase clay block volumes by
- further gaining market share in France, UK and the Netherlands
- enforcement of customized system solutions and building concepts in Belgium
and the Netherlands

- increase facing brick volumes by

- enforcement of customized distribution channels and system solutions in Belgium
and the Netherlands

- increase roof tile volumes by

- using renovation market as growth driver
- enforcement of customized system solutions
39

Wienerberger Investor Relations

Wienerberger AG, A-1100 Vienna, Wienerbergstrasse 11
Tel +43 1 60192 - 471, Fax +43 1 60192 - 466
investor@wienerberger.com | www.wienerberger.com

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