Wienerberger : Annual and Sustainability Report 2023

CEO Letter

Dear Shareholders,in an extremely volatile and challenging economic environ-ment marked by high interest rates and high inflation, we are looking back on the 2023 business year in a positive light. With total revenues of € 4,224 million and operating EBITDA of € 811 million generated in 2023, wienerberger not only outperformed its end markets, but also met the expectations placed in the company.

targets for 2023, we have set even more ambitious ones for 2026: The new three-year Sustainability Program focuses on a broader range of environmental and social topics, with wie-nerberger's sustainability targets providing a basis for organic growth. This applies to both internal processes and the design of products for enhanced energy efficiency and climate resilience that benefit society as a whole.

This very satisfactory result was achieved, above all, through the strong performance of wienerberger's business in pipes for energy and water management and in renovation, whereas the new-build segment trended downward, especially in Europe. North America proved to be more resilient and delivered a solid contribution to earnings.

Responding rapidly to these developments, we adapted our entire cost management process, which proved to be a major factor of our success. Moreover, our time-tested program aimed at earnings growth and efficiency enhancement contributed a substantial € 46 million to the result. At the same time, techno-logical optimization led to a decrease in energy consumption and, alongside cost savings, a sustainable reduction of CO₂ emissions.

The takeover of Terreal, the largest corporate acquisition in the entire history of our company, was successfully closed at the end of February 2024. Terreal is a successful European provider for the renovation and repair of roofs in France, Italy, Spain, and the US, including Creaton in Germany. This acquisition streng-thens our position as a leading European expert in innovative roofing and solar solutions for pitched roofs and broadens the range of our activities in the fast-growing renovation and repair market.

Thanks to our strong local business model, our proactive price and margin management, as well as our strategic focus on reno-vation and on infrastructure for water and energy management, I am convinced that we are perfectly positioned to maintain our high level of profitability throughout 2024.

At wienerberger, we have learned how to swiftly reposition ourselves, step up the pace of innovation, and optimize costs. The sound results of the 2023 business year once again demonstrate the resilience of wienerberger's sustainable and diversified business model.

Thanking you for your trust, I remain Yours sincerely,

Sustainability has always been an integral part of wienerberger's corporate strategy and a strategic and operational priority of our corporate development. By proactively addressing the challenges of climate change and its consequences, wienerberger becomes part of the solution. Having met our

Heimo Scheuch

Chairman of the Managing Board of Wienerberger AG CEO

committee also proposed targets for the variable remuneration of the members of the Managing Board, drafted the remunera-tion report, and elaborated the principles governing Managing Board and Supervisory Board remuneration (Remuneration Policy) as of 2024, with support from an external corporate governance consultant specializing in remuneration issues.

In the year under review, the Sustainability and Innovation Committee monitored the implementation of the Sustainability Program and the attainment of the targets set for 2023. At the same time, it focused, in particular, on the elaboration of the 2023-2026 Sustainability Program. Additionally, the committee monitored the progress achieved by wienerberger in respect of to the Group's decarbonisation strategy and the associated research projects and risk analyses.

Report and the consolidated financial statements, the Group Management Report, the Managing Board's proposal for profit distribution, the consolidated Corporate Governance Report, the consolidated non-financial report (Sustainability Report), and the auditor's reports. The reviews by the Supervisory Board did not lead to any objections. After an analysis of the compa-ny's financial position, the Supervisory Board endorsed the Managing Board's proposal for profit distribution.

For details regarding the composition and working methods of the Supervisory Board and its committees, please refer to the consolidated 2023 Corporate Governance Report.

The consolidated 2023 Corporate Governance Report was also evaluated by Deloitte Audit Wirtschaftsprüfungs GmbH, Vienna. In the course of this evaluation, no circumstances came to the auditor's attention that would have given rise to the assumption that the consolidated Corporate Governance Report was not in compliance with the Austrian Corporate Gov-ernance Code in any material aspect. The evaluation of com-pliance with the C Rules of the Austrian Corporate Governance Code (Rules 77 to 83) relating to the auditor was performed by the law firm Schönherr Rechtsanwälte GmbH. This evaluation also found no irregularities.

Separate and Consolidated Annual Financial Statements

The separate and consolidated annual financial statements as at December 31, 2023, were audited by Deloitte Audit Wirtschaftsprüfungs GmbH, Vienna, the external auditor elected at the 154th Annual General Meeting on May 5, 2023. The audit did not identify any misstatements and concluded that the separate financial statements as well as the consoli-dated financial statements prepared pursuant to sect. 245a of the Austrian Companies Code in accordance with the Interna-tional Financial Reporting Standards (IFRS) complied with the applicable legal provisions. The auditor issued an unqualified audit opinion on both the separate and the consolidated finan-cial statements and confirmed that the Management Report is consistent with the separate financial statements and that the Group Management Report is consistent with the consolidated financial statements.

Thanks to its adaptability to changing market conditions, wienerberger is capable of recognizing challenges early on and reacting swiftly to them. By shifting the focus of the company's business toward renovation, the Group has become more resilient overall. With its clear strategy, wienerberger is well positioned for the future and will continue on its successful course in 2024. The Supervisory Boards would like to thank you, our esteemed shareholders, for your interest and your support.

On March 22, 2024, having examined and discussed the financial statements with the auditor within the framework of the Audit and Risk Committee and the Supervisory Board, the latter approved the annual financial statements as at December 31, 2023, which were there-by officially adopted pursuant to Section 96 (4) of the Stock Corporation Act. Moreover, follow-ing prior examination by the Audit and Risk Committee, the Supervisory Board reviewed and approved the Management

Peter Steiner Chairman of the Supervisory Board of Wienerberger AG

Equity Story

For more than 200 years, our mission at wienerberger has been clear: improving people's quality of life through our smart building material and infrastructure solutions. With our durable and sustainable products for new build, reno-vation, and infrastructure, we are perfectly positioned to further improve our ecological performance by contributing to the fight against climate change and to shape the future of construction through innovation. wienerberger has been listed on the Vienna Stock Exchange since 1869 and is a pure free float company with 100% of its shares being publicly traded.

2. Added value for our shareholders through stable earnings growth

With a clear strategic focus and a proven track record in deliv-ering strong growth rates, EBITDA margins, and cash flows, we continuously aim to generate added value for our stakeholders. We therefore concentrate on three core areas:

Organic growth through innovation

Why invest in wienerberger?

For wienerberger as a leading provider of smart solutions, innovation and digitalization are the main drivers of organic growth. By continuously upgrading our portfolio of products and solutions, we generate added value for our customers and boost the company's value creation.

1. Strong commitment to ESG

• › We provide solutions for net zero buildings not only through our sustainable materials used for the building envelope, but also through our progress in the fields of water and energy management.

• › Owing to their energy efficiency, our products for the construction industry contribute to the fight against climate change both in summer and in winter. With our innova-tive infrastructure solutions, we guarantee a careful use of resources such as water. Given their exceptional quality and a service life of over 100 years, our products last for generations.

  Higher earnings through Operational Excellence

  We continuously implement efficiency-enhancing measures along our value chain from procurement through production to sales and administration. Within the framework of our self-help program of efficiency enhancement, we are building a strong track record of performance improvement.

• › At wienerberger, we focus on three crucial sustainability topics: preserving biodiversity, reducing our CO₂ emissions, and promoting a circular economy.

• › For us, people always come first. Every year, therefore, we support people in need with our products for housing con-struction.

• › As a company with a free float of 100%, it is a matter of course for us to engage in open dialogue with our investors and to meet the highest international governance standards.

SHARE OF INNOVATIVE PRODUCTS

>35%

until 2026

IMPROVED EFFICIENCY

€ 136 mn

EBITDA contribution in 2021 - 2023

External Growth through M&A

3. Resilience through diversity

Given our low gearing and our strong cash flow generation, we are well-equipped to grow through acquisitions and are evalu-ating a highly attractive deal pipeline. This will result in further growth in our core markets in Europe and North America. The most recent acquisitions in our European and North American core markets result in an average weighted EV/EBITDA multiple of ~5x after synergies three years post-merger, which is attribut-able to the combination of the acquired company with our own portfolio.

• › Leading market positions, strong brands, and experienced local management teams make us a well-respected local partner with close contacts to decision-makers.

• › Thanks to our strong industrial base with more than 200 modern plants and efficient overhead structures, we achieve optimal market coverage.

• › Our diversified business model with its focus on new build, renovation, and infrastructure in 27 countries helps to bal-ance out divergent business cycles.

• › The resilience of our business model was successfully demonstrated during the pandemic as well as geopolitical challenges.

STRONG ORGANIC GROWTH AND VALUE CREATION FOR SHAREHOLDERS IN 2010 - 2023

STRONG M&A TRACK RECORD

~5×

EV / EBITDA multiple 3 years post-merger and including synergies

Our Vision

Innovative and sustainable solutions for a better tomorrow

We improve people's quality of life and create a better world for future generations by providing innovative and ecological solu-tions for new build, renovation, and infrastructure projects. We want to inspire potential employees, customers, business partners, and our entire industry. Our common vision:

We take on responsibility and live our vision. In all wienerberger business fields and areas, we commit ourselves to sustainable innovation, work on modern solutions, and push digitalization in the construction industry. At the same time, we fulfill our obligations with regard to ecology and society. Our actions and our cooperations are based on four values, which have grown over the years in our organization: trust, respect, passion, and creativity. These values connect us over all sites and in all fields of activities.

Our solutions & services: Innovations of tomorrow

Due to our company vision and our values, as well as the respective strength of innovation, we have already developed climate-resilient solutions for buildings and infrastructure, we use innovative Industry 4.0 applications, and provide state-of-the-art solutions in the field of sustainable construction, from which our customers and employees - as well as our sharehold-ers and future generations - will profit in the long term.

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